Bill Text: IL HB3950 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit for dependents of the taxpayer. Provides that the maximum amount of the credit is $700 per qualified dependent of the taxpayer. Provides that the maximum amount shall be reduced by $24 for each $1,000 by which the taxpayer's net income exceeds $75,000 in the case of a joint return or $50,000 in the case of any other form of return. Defines "qualified dependent". Effective immediately.

Spectrum: Partisan Bill (Democrat 16-0)

Status: (Introduced) 2024-01-19 - Added Co-Sponsor Rep. Diane Blair-Sherlock [HB3950 Detail]

Download: Illinois-2023-HB3950-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3950 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
Amends the Illinois Income Tax Act. Creates an income tax credit for dependents of the taxpayer. Provides that the maximum amount of the credit is $700 per qualified dependent of the taxpayer. Provides that the maximum amount shall be reduced by $24 for each $1,000 by which the taxpayer's net income exceeds $75,000 in the case of a joint return or $50,000 in the case of any other form of return. Defines "qualified dependent". Effective immediately.
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A BILL FOR
HB3950 LRB103 27522 HLH 57537 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. Dependent tax credit.
(a) For taxable years beginning on or after January 1,
2024, there shall be allowed a credit against the tax imposed
by subsections (a) and (b) of Section 201 in an amount
calculated under subsection (b). If the amount of the credit
exceeds the taxpayer's income tax liability under this Act for
the applicable tax year, then the excess credit shall be
refunded to the taxpayer. Each individual taxpayer, including
a taxpayer filing a return using a federal individual taxpayer
identification number as prescribed under Section 6109 of the
Internal Revenue Code, is entitled to the credit under this
Section.
(b) The maximum amount of the credit allowed under this
Section is $700 per qualified dependent of the taxpayer;
however, that amount shall be reduced by $24 for each $1,000 by
which the taxpayer's net income exceeds $75,000 in the case of
a joint return or $50,000 in the case of any other form of

HB3950 - 2 - LRB103 27522 HLH 57537 b
return.
(c) The amount of a refund shall not be included in the
taxpayer's income or resources for the purposes of determining
eligibility or benefit level in any means-tested benefit
program administered by a governmental entity unless required
by federal law.
(d) As used in this Section, "qualified dependent" means a
person who is a dependent of the taxpayer under Section 152 of
the Internal Revenue Code, has the same principal place of
abode as the taxpayer for more than 50% of the taxable year,
and either is (i) 17 years of age or younger during the taxable
year or (ii) physically or mentally incapable of caring for
himself or herself, as determined under Section 21(b)(1)(B) of
the Internal Revenue Code.
(e) The Department of Revenue may adopt rules necessary or
appropriate to carry out the purposes of this Section.
(f) This Section is exempt from Section 250.
Section 99. Effective date. This Act takes effect upon
becoming law.