102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5135

 

Introduced 1/27/2022, by Rep. Aaron M. Ortiz

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates a child and dependent care credit equal to a percentage of the child and dependent care credit allowed to the taxpayer for federal income tax purposes under Section 21 of the Internal Revenue Code. Effective immediately.


LRB102 25183 HLH 34447 b

 

 

A BILL FOR

 

HB5135LRB102 25183 HLH 34447 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
5adding Section 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Child and dependent care credit.
8    (a) For taxable years beginning on or after January 1,
92023, each taxpayer with a federal adjusted gross income of
10less than $45,000 is entitled to a credit against the tax
11imposed under subsections (a) and (b) of Section 201 equal to a
12percentage of the child and dependent care credit allowed to
13the taxpayer for federal income tax purposes under Section 21
14of the Internal Revenue Code. For the following federal
15adjusted gross income ranges, the taxpayer's credit shall be
16the percentage of the federal credit allowed to the taxpayer
17for federal income tax purposes under Section 21 of the
18Internal Revenue Code indicated:
19        Less than $10,000, 75%.
20        $10,000 or more, but less than $20,000, 65%.
21        $20,000 or more, but less than $25,000, 55%.
22        $25,000 or more, but less than $35,000, 50%.
23        $35,000 or more, but less than $40,000, 40%.

 

 

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1        $40,000 or more, but less than $45,000, 30%.
2    (b) The credit under this Section may not reduce the
3taxpayer's liability to less than zero. If the amount of the
4credit or credits exceeds the taxpayer's liability, the excess
5may be refunded to the taxpayer.
6    (c) This Section is exempt from the provisions of Section
7250.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.