HB2327 103RD GENERAL ASSEMBLY

LRB103 27396 HLH 53768 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2327

Introduced 2/14/2023, by Rep. Edgar Gonzalez, Jr.

SYNOPSIS AS INTRODUCED:

35 ILCS 5/234 new

Amends the Illinois Income Tax Act. Creates a credit for taxpayers who have at least one eligible dependent and whose income does not exceed certain specified guidelines. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 234 as follows:

(35 ILCS 5/234 new)

Sec. 234. Child care credit.

(a) For tax years beginning on or after January 1, 2024, each qualified taxpayer may apply to the Department of Revenue for a credit against the taxes imposed by subsections (a) and (b) of Section 201. The amount of the credit shall be $1,500 for the first eligible dependent of the taxpayer, plus an additional $500 for each additional eligible dependent, but not to exceed $2,500 per taxpayer in any taxable year. The aggregate amount of credits awarded by the Department of Revenue may not exceed $100,000,000 in any taxable year. Credits shall be awarded on a first-come, first-served basis.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) As used in this Section:

"Eligible dependent" means an individual who is under 17 years of age during the taxable year and is claimed by the taxpayer as a dependent for federal income tax purposes for that taxable year.

"Qualified taxpayer" means a taxpayer with at least one eligible dependent whose federal adjusted gross income does not exceed: (1) $75,000 for spouses filing a joint return or (2) $45,000 for all other taxpayers.

(d) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.