Illinois General Assembly - Full Text of SB3329
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Full Text of SB3329  103rd General Assembly



State of Illinois
2023 and 2024


Introduced 2/7/2024, by Sen. Omar Aquino


35 ILCS 5/212.5 new

    Amends the Illinois Income Tax Act. Creates a child tax credit in an amount equal to the product of a specified credit amount multiplied by the number of qualifying children of the taxpayer. Effective immediately.

LRB103 39091 HLH 69229 b





SB3329LRB103 39091 HLH 69229 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5adding Section 212.5 as follows:
6    (35 ILCS 5/212.5 new)
7    Sec. 212.5. Child tax credit.
8    (a) For taxable years beginning on or after January 1,
92025, subject to the reduction set forth in subsection (b),
10each taxpayer is allowed a credit against the tax imposed by
11subsections (a) and (b) of Section 201 in an amount equal to
12the product of the credit amount multiplied by the number of
13qualifying children of the taxpayer. To receive a credit, the
14taxpayer must be eligible for a credit under Section 32 of the
15Internal Revenue Code with respect to a qualifying child.
16However, a taxpayer is entitled to the credit under this
17Section regardless of whether or not the credit is disallowed
18under Section 32 of the Internal Revenue Code because the
19taxpayer has insufficient earned income.
20    (b) The credit under this Section shall be reduced by an
21amount equal to 2% of the portion of the taxpayer's earned
22income or adjusted gross income, whichever is greater, that
23exceeds the phaseout threshold.



SB3329- 2 -LRB103 39091 HLH 69229 b

1    (c) If the amount of the credit exceeds the income tax
2liability for the applicable tax year, then the excess credit
3shall be refunded to the taxpayer. The amount of the refund
4shall not be included in the taxpayer's income or resources
5for the purposes of determining eligibility or benefit level
6in any means-tested benefit program administered by a
7governmental entity unless required by federal law.
8    (d) As used in this Section:
9    "Consumer Price Index" means the index published by the
10Bureau of Labor Statistics of the United States Department of
11Labor that measures the average change in prices of goods and
12services purchased by all urban consumers, United States city
13average, all items, 1982-84 = 100.
14    "Credit amount" means:
15        (1) for taxable years beginning on or after January 1,
16    2025 and beginning before January 1, 2026, $300; and
17        (2) for taxable years beginning on or after January 1,
18    2026, the amount generated by multiplying the credit
19    amount for the immediately preceding calendar year by one
20    plus the percentage increase, if any, in the Consumer
21    Price Index during the 12-month period ending in September
22    of the previous calendar year and then rounding the
23    product to the nearest $10.
24    By December 1, 2025, and by December 1 of each calendar
25year thereafter, the Department shall calculate the credit
26amount for the next calendar year and shall publish that



SB3329- 3 -LRB103 39091 HLH 69229 b

1credit amount on its website.
2    "Phaseout threshold" means:
3        (1) $75,000 for a married taxpayer filing a joint
4    return; and
5        (2) $50,000 for all other filers.
6    "Qualifying child" has the meaning given in subsection (c)
7of Section 32 of the Internal Revenue Code, except that:
8        (1) the term excludes individuals who attain the age
9    of 18 or greater during the taxable year; and
10        (2) subsection (m) of Section 32 of the Internal
11    Revenue Code does not apply.
12    (e) This Section is exempt from the provisions of Section
14    Section 99. Effective date. This Act takes effect upon
15becoming law.