Bill Text: IL SB3329 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: 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.

Spectrum: Partisan Bill (Democrat 28-0)

Status: (Introduced) 2024-03-22 - Added as Co-Sponsor Sen. Karina Villa [SB3329 Detail]

Download: Illinois-2023-SB3329-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3329 Introduced 2/7/2024, by Sen. Omar Aquino SYNOPSIS AS INTRODUCED:
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
A BILL FOR
SB3329 LRB103 39091 HLH 69229 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 212.5 as follows:
(35 ILCS 5/212.5 new)
Sec. 212.5. Child tax credit.
(a) For taxable years beginning on or after January 1,
2025, subject to the reduction set forth in subsection (b),
each taxpayer is allowed a credit against the tax imposed by
subsections (a) and (b) of Section 201 in an amount equal to
the product of the credit amount multiplied by the number of
qualifying children of the taxpayer. To receive a credit, the
taxpayer must be eligible for a credit under Section 32 of the
Internal Revenue Code with respect to a qualifying child.
However, a taxpayer is entitled to the credit under this
Section regardless of whether or not the credit is disallowed
under Section 32 of the Internal Revenue Code because the
taxpayer has insufficient earned income.
(b) The credit under this Section shall be reduced by an
amount equal to 2% of the portion of the taxpayer's earned
income or adjusted gross income, whichever is greater, that
exceeds the phaseout threshold.

SB3329 - 2 - LRB103 39091 HLH 69229 b
(c) If the amount of the credit exceeds the income tax
liability for the applicable tax year, then the excess credit
shall be refunded to the taxpayer. The amount of the 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:
"Consumer Price Index" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100.
"Credit amount" means:
(1) for taxable years beginning on or after January 1,
2025 and beginning before January 1, 2026, $300; and
(2) for taxable years beginning on or after January 1,
2026, the amount generated by multiplying the credit
amount for the immediately preceding calendar year by one
plus the percentage increase, if any, in the Consumer
Price Index during the 12-month period ending in September
of the previous calendar year and then rounding the
product to the nearest $10.
By December 1, 2025, and by December 1 of each calendar
year thereafter, the Department shall calculate the credit
amount for the next calendar year and shall publish that

SB3329 - 3 - LRB103 39091 HLH 69229 b
credit amount on its website.
"Phaseout threshold" means:
(1) $75,000 for a married taxpayer filing a joint
return; and
(2) $50,000 for all other filers.
"Qualifying child" has the meaning given in subsection (c)
of Section 32 of the Internal Revenue Code, except that:
(1) the term excludes individuals who attain the age
of 18 or greater during the taxable year; and
(2) subsection (m) of Section 32 of the Internal
Revenue Code does not apply.
(e) This Section is exempt from the provisions of Section
250.