Bill Text: IL HB2327 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB2327 Detail]

Download: Illinois-2023-HB2327-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2327 Introduced , 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.
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A BILL FOR
HB2327 LRB103 27396 HLH 53768 b
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

HB2327 - 2 - LRB103 27396 HLH 53768 b
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.