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Illinois Lawmakers Introduce Child Tax Credit: What You Should Know

This week, a group of Democratic lawmakers (Illinois Lawmakers) called for the establishment of a state-level child tax credit that would provide low- and middle-income families with up to $700 in yearly tax relief for each kid. It is unclear, however, if Gov. J.B. Pritzker would include such a plan in his budget proposal, which is expected to be submitted on February 15; and whether it will win the support of key Democratic leaders in the General Assembly.
Illinois Lawmakers Introduce Child Tax Credit: What You Should Know

Sen. Mike Simmons, a Democrat from Chicago, joins supporters in urging the development of a state child tax credit during a news conference on Tuesday. (photo by Peter Hancock)

The plan’s annual cost was estimated by Erion Malasi, head of policy and activism at the advocacy organization Economic Security for Illinois, to be between $700 million and $800 million.

According to state senator Mike Simmons, a Democrat from Chicago, the majority of youngsters in Illinois would benefit from the passage of such a bill.

During a press conference at the Statehouse on Tuesday, he said, “It puts money in the pockets of struggling families and dads all across the state.” And when we put money in the pockets of those working parents, we know that they are unable to save and will instead go out and spend it on things like shoes for their children, health treatment that they have been putting off for too long, and food for their teenagers who enjoy eating.

According to Donna Carpenter, a mother and grandmother who works for the nonprofit Community Organizing and Family Issues, which is supporting the bill, “Even a few hundred extra dollars can enable families like mine to get through.” “With an extra $700, I could pay a few bills and go shopping for clothes for my son who has special needs.”

A tax credit, according to lawmakers, is necessary because inflation has recently increased.

Working parents are having more difficulty than ever. Mike Simmons, a state senator from Chicago, remarked. “It is time for the state to establish a permanent Child Tax Credit that puts cash back into the hands of Illinois parents so that parents can take care of their children and communities can start to recover.”

Even if a person does not have children, Illinois already provides the earned income tax credit (EITC), which is available to anyone who fulfill specific income requirements. Parents would receive more money via a child tax credit. The child tax credit would be refundable, similar to the EITC, which means that if the credit’s value is greater than the filer’s overall tax burden, the difference would be returned to the filer.

The proposal’s language is set down in Senate Bill 1444, which Simmons introduced on Tuesday. A $700 per kid tax credit would be available under the proposed law to individuals with earnings under $50,000 and married couples filing jointly with incomes under $75,000.

The amount of the benefit would be decreased by $24 for every $1,000 of additional income for tax filers with incomes exceeding specified ceilings.

Other proponents of the proposal joined Simmons at the press conference, including Sen. Robert Peters, a Chicago Democrat whose district, according to Peters, encompasses both wealthy and impoverished ZIP codes in Illinois.

Final Take

The law, according to the organization Economic Security for Illinois, would cost between $700 and $800 million, or about 2% of the state’s FY2023 budget. Legislators claim that Governor J.B. Pritzker, Speaker of the Illinois House Chris Welch (D-Hillside), and President of the Illinois Senate Don Harmon (D-Oak Park) have not yet endorsed the measure. There is no expiration date for the proposal’s present iteration.


Read More: The Child Tax Credit in 2023: Will It Exist?


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