SB2263 amends the Illinois Income Tax Act to create a new state child care tax credit beginning with taxable years on or after January 1, 2025. The credit equals 25% of the federal child tax credit allowed for each qualifying child, and it is available to qualified individual taxpayers who may claim one or more qualifying children as dependents and whose federal adjusted gross income does not exceed the federal threshold amount used for the federal child tax credit.
The bill also makes the credit refundable, meaning taxpayers can receive the excess if the credit is larger than their Illinois income tax liability. In addition, any refunded amount is excluded from income and resources when determining eligibility or benefit levels for means-tested government programs, unless federal law requires otherwise. The credit is prorated for nonresidents and part-year residents based on Illinois-source income, and the bill states that the new section is exempt from Section 250 of the Income Tax Act.
Impact
If enacted, SB2263 would add a new refundable child care-related income tax credit to Illinois law under a new Section 246 of the Illinois Income Tax Act. It would directly affect eligible taxpayers with qualifying children age 13 or younger, reduce state income tax liability for those households, and potentially increase state refund payments. The measure would also affect administration of means-tested public benefit programs by preventing refunded credits from being counted as income or resources, except where federal law requires a different treatment.
Sentiment
The available record shows no committee transcript, recorded votes, or formal amendments, so there is no documented debate or opposition in the provided materials. Based on the bill text and caption, the measure appears to be framed as a family tax relief proposal intended to support households with young children, which suggests a generally pro-family, pro-tax-relief orientation. Because there is no voting history or hearing discussion, overall sentiment cannot be measured beyond the bill’s supportive policy design.
Contention
No specific points of contention are documented in the provided materials. Potential issues that could arise from the text itself include the fiscal cost of making the credit refundable, the income eligibility threshold tied to the federal child tax credit, and the exclusion of refunded amounts from means-tested benefit calculations. Another possible area of discussion is the bill’s use of the term “child care credit” even though the credit is structured as a percentage of the federal child tax credit for qualifying children, which may prompt questions about scope and policy intent.