SB1813 amends the Illinois Income Tax Act to substantially expand the state’s education expense tax credit. Under the bill, the credit would increase from 25% to 50% of qualified education expenses for tax years ending on or after December 31, 2025. It also raises the maximum credit to $2,000 per qualifying child, capped at $6,000 per family per year, and changes the income eligibility rule so that taxpayers with adjusted gross income above 400% of the federal poverty level could no longer claim the credit.
The bill also revises the definition of “qualified education expense.” Eligible costs would include tuition, book fees, and lab fees at the enrolled school, as well as tutoring, AP/IB/SAT/ACT exam fees and preparation, and out-of-school academic enrichment activities such as lessons, classes, or camps. The credit remains available only to Illinois residents who are custodians of qualifying pupils, meaning parents or legal guardians of children under 21 enrolled full-time in K-12 education at a qualifying school. The bill is effective immediately, but the expanded credit amount and new income limit would apply beginning with tax years ending on or after December 31, 2025.
Impact
SB1813 would amend Section 201(m) of the Illinois Income Tax Act, directly changing the state income tax education expense credit. It would increase the credit percentage, raise the per-child and per-family caps, and replace the prior fixed-dollar income thresholds with a federal-poverty-level-based eligibility test. The bill would also broaden the types of expenses that qualify, which could increase the number of taxpayers eligible for the credit and the amount of credits claimed, affecting state revenue and the administration of the credit by the Illinois Department of Revenue.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the available record does not show formal support or opposition. The measure appears to be framed as an expansion of tax relief for families with school-age children, suggesting a generally pro-family, pro-education policy approach. Because no committee debate or voting history is included, there is no documented sentiment from legislators or stakeholders in the supplied context.
Contention
The main policy tension in SB1813 is fiscal and eligibility-related. Supporters would likely view the bill as making private education, tutoring, test preparation, and enrichment more affordable for Illinois families, while critics may focus on the higher cost to state revenues and the broader scope of qualifying expenses. Another likely point of contention is the new income cutoff at 400% of the federal poverty level, which is more restrictive than the prior dollar-based thresholds for some taxpayers and may be viewed either as better targeting the credit to middle- and lower-income families or as excluding households that still face significant education costs.