101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2959

 

Introduced 2/14/2019, by Rep. Kambium Buckner

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/229 new
35 ILCS 5/230 new
35 ILCS 5/231 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for each taxpayer (i) whose federal adjusted gross income is less than 185% of the federal poverty level and (ii) who is the custodian of a child who attends a high quality early childhood education program during the taxable year. Provides that the term "high quality early childhood education program" means a program that is rated in the Gold Circle of Quality or the Silver Circle of Quality under the ExceleRate Illinois rating system. Creates an income tax credit for a business that (i) provides an early childhood program that is rated in the Gold Circle of Quality or the Silver Circle of Quality under the ExceleRate Illinois rating system and (ii) enrolls a student for at least 6 months during the taxable year who (A) is eligible for the child care assistance program, (B) receives foster care services, or (C) both (A) and (B). Creates an income tax credit for employees of a licensed day care center, day care home, or group day care home who obtain certain certifications. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2959LRB101 11196 HLH 56441 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Sections 229, 230, and 231 as follows:
 
6    (35 ILCS 5/229 new)
7    Sec. 229. Early childhood education credit.
8    (a) For taxable years beginning on or after January 1,
92018, each taxpayer (i) whose federal adjusted gross income is
10less than 185% of the federal poverty level and (ii) who is the
11custodian of a child who attends a high quality early childhood
12education program during the taxable year is allowed a credit
13against the taxes imposed under subsections (a) and (b) of
14Section 201 as provided in this Section. The amount of the
15credit for taxable years beginning on or after January 1, 2019
16and beginning prior to January 1, 2020 is as follows:
17        (1) $3,000 per taxable year for each child who, during
18    the taxable year, is enrolled in an early childhood
19    education program that is rated in the Gold Circle of
20    Quality under the ExceleRate Illinois rating system as of
21    July 1 of the taxable year; and
22        (2) $2,000 per taxable year for each child who, during
23    the taxable year, is enrolled in an early childhood

 

 

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1    education program that is rated in the Silver Circle of
2    Quality under the ExceleRate Illinois rating system as of
3    July 1 of the taxable year.
4    For taxable years beginning on or after January 1, 2020,
5the amount of the credit set forth under items (1) and (2)
6shall be adjusted on January 1 of the taxable year by an amount
7equal to the increase, if any, in the Employment Cost Index,
8published by the Bureau of Labor Statistics of the U.S.
9Department of Labor, for the calendar year immediately
10preceding the increase date.
11    If the child attends more than one high quality early
12childhood education program during the taxable year, the
13taxpayer shall be allowed a credit for only one program per
14child, and the program with the highest applicable quality
15rating shall be used to calculate the credit.
16    (b) The credit may not be carried forward or back and may
17not reduce the taxpayer's liability to less than zero. If the
18amount of the credit exceeds the tax liability for the year,
19and if the taxpayer's federal adjusted gross income is less
20than 100% of the federal poverty level, then the excess amount
21shall be refunded to the taxpayer.
22    (c) As used in this Section:
23    "Custodian" means an Illinois resident who is a parent, the
24parents, a legal guardian, or the legal guardians of a child
25who attends a high quality early childhood education program
26during the taxable year.

 

 

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1    "High quality early childhood education program" means a
2program that is rated in the Gold Circle of Quality or the
3Silver Circle of Quality under the ExceleRate Illinois rating
4system.
5    (d) This Section is exempt from the provisions of Section
6250.
 
7    (35 ILCS 5/230 new)
8    Sec. 230. Child care provider tax credit.
9    (a) For taxable years beginning on or after January 1,
102019, each qualified child care provider is entitled to a
11credit against the taxes imposed under subsections (a) and (b)
12of Section 201 for each child enrolled with the child care
13provider for at least 6 months during the taxable year who (i)
14is enrolled in the child care assistance program under Section
159A-11 of the Illinois Public Aid Code, (ii) receives foster
16care services, or (iii) both (i) and (ii). The amount of the
17credit for taxable years beginning on or after January 1, 2019
18and beginning prior to January 1, 2020 is as follows:
19        (1) $1,500 for each such child if the child care
20    provider is rated in the Gold Circle of Quality under the
21    ExceleRate Illinois rating system as of July 1 of the
22    taxable year; and
23        (2) $1,000 for each such child if the child care
24    provider is rated in the Silver Circle of Quality under the
25    ExceleRate Illinois rating system as of July 1 of the

 

 

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1    taxable year.
2    For taxable years beginning on or after January 1, 2020,
3the amount of the credit set forth under items (1) and (2)
4shall be adjusted on January 1 of the taxable year by an amount
5equal to the increase, if any, in the Employment Cost Index,
6published by the Bureau of Labor Statistics of the U.S.
7Department of Labor, for the calendar year immediately
8preceding the increase date.
9    (b) If the amount of the credit exceeds the tax liability
10for the year, then the excess amount shall be refunded to the
11taxpayer.
12    (c) As used in this Section:
13    "Qualified child care provider" means a business that
14provides an early childhood education program that is rated in
15the Gold Circle of Quality or the Silver Circle of Quality
16under the ExceleRate Illinois rating system.
17    (d) This Section is exempt from the provisions of Section
18250.
 
19    (35 ILCS 5/231 new)
20    Sec. 231. Child care center employees.
21    (a) For taxable years beginning on or after January 1,
222019, each taxpayer who is employed at a licensed day care
23center, licensed day care home, or licensed group day care
24home, as defined in the Child Care Act of 1969, for at least 6
25months during the taxable year is entitled to a credit against

 

 

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1the taxes imposed under subsections (a) and (b) of Section 201
2as provided in this Section if the taxpayer has one or more of
3the following credentials under the Gateways to Opportunity
4professional development support system, as recognized by the
5Department of Human Services, Bureau of Child Care and
6Development:
7        (1) Infant Toddler;
8        (2) ECE;
9        (3) School Age;
10        (4) Family Child Care;
11        (5) Family Specialist;
12        (6) Technical Assistance; or
13        (7) Illinois Director.
14    (b) For taxpayers with credentials other than Illinois
15Director, the amount of the credit for taxable years beginning
16on or after January 1, 2019 and beginning prior to January 1,
172020 is as follows:
18        (1) if the taxpayer is a Level 6 with respect to any of
19    those credentials, then the taxpayer is entitled to a
20    credit of $3,500 for the taxable year;
21        (2) if the taxpayer is a Level 5 with respect to any of
22    those credentials, then the taxpayer is entitled to a
23    credit of $3,000 for the taxable year;
24        (3) if the taxpayer is a Level 4 with respect to any of
25    those credentials, then the taxpayer is entitled to a
26    credit of $2,500 for the taxable year;

 

 

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1        (4) if the taxpayer is a Level 3 with respect to any of
2    those credentials, then the taxpayer is entitled to a
3    credit of $2,000 for the taxable year;
4        (5) if the taxpayer is a Level 2 with respect to any of
5    those credentials, then the taxpayer is entitled to a
6    credit of $1,500 for the taxable year; and
7        (6) no credit is allowed if the taxpayer is a Level 1
8    with respect to any of those credentials.
9    (c) For taxpayers with the Illinois Director credential,
10the amount of the credit for taxable years beginning on or
11after January 1, 2019 and beginning prior to January 1, 2020 is
12as follows:
13        (1) if the taxpayer is an Illinois Director Level 3,
14    then the taxpayer is entitled to a credit of $3,500 for the
15    taxable year;
16        (2) if the taxpayer is an Illinois Director Level 2,
17    then the taxpayer is entitled to a credit of $3,000 for the
18    taxable year; and
19        (3) if the taxpayer is an Illinois Director Level 1,
20    then the taxpayer is entitled to a credit of $2,500 for the
21    taxable year.
22    (d) Each taxpayer shall be allowed a credit with respect to
23only one credential in any taxable year; the credential with
24the highest credit amount shall be used. For taxable years
25beginning on or after January 1, 2020, the amount of the credit
26set forth in subsections (b) and (c) shall be adjusted on

 

 

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1January 1 of the taxable year by an amount equal to the
2increase, if any, in the Employment Cost Index, published by
3the Bureau of Labor Statistics of the U.S. Department of Labor,
4for the calendar year immediately preceding the increase date.
5    (e) If the amount of the credit exceeds the tax liability
6for the year, then the excess amount shall be refunded to the
7taxpayer.
8    (f) This Section is exempt from the provisions of Section
9250.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.