Full Text of SB3329 103rd General Assembly
SB3329 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB3329 Introduced 2/7/2024, by Sen. Omar Aquino SYNOPSIS AS INTRODUCED: | | | 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. |
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | adding 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, | 9 | | 2025, subject to the reduction set forth in subsection (b), | 10 | | each taxpayer is allowed a credit against the tax imposed by | 11 | | subsections (a) and (b) of Section 201 in an amount equal to | 12 | | the product of the credit amount multiplied by the number of | 13 | | qualifying children of the taxpayer. To receive a credit, the | 14 | | taxpayer must be eligible for a credit under Section 32 of the | 15 | | Internal Revenue Code with respect to a qualifying child. | 16 | | However, a taxpayer is entitled to the credit under this | 17 | | Section regardless of whether or not the credit is disallowed | 18 | | under Section 32 of the Internal Revenue Code because the | 19 | | taxpayer has insufficient earned income. | 20 | | (b) The credit under this Section shall be reduced by an | 21 | | amount equal to 2% of the portion of the taxpayer's earned | 22 | | income or adjusted gross income, whichever is greater, that | 23 | | exceeds the phaseout threshold. |
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| 1 | | (c) If the amount of the credit exceeds the income tax | 2 | | liability for the applicable tax year, then the excess credit | 3 | | shall be refunded to the taxpayer. The amount of the refund | 4 | | shall not be included in the taxpayer's income or resources | 5 | | for the purposes of determining eligibility or benefit level | 6 | | in any means-tested benefit program administered by a | 7 | | governmental entity unless required by federal law. | 8 | | (d) As used in this Section: | 9 | | "Consumer Price Index" means the index published by the | 10 | | Bureau of Labor Statistics of the United States Department of | 11 | | Labor that measures the average change in prices of goods and | 12 | | services purchased by all urban consumers, United States city | 13 | | average, 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 | 25 | | year thereafter, the Department shall calculate the credit | 26 | | amount for the next calendar year and shall publish that |
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| 1 | | credit 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) | 7 | | of 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 | 13 | | 250. | 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law. |
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