Lawmakers in Illinois are considering a new tax credit that would give hundreds of dollars to eligible families.
With just two weeks until the end of the Illinois regular legislative session, considerations are being made over a $300 child tax credit for low income families in the Midwestern state. Although proposed as a bill, HB4917, the child tax credit would be enacted as part of the state's annual budget.
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To qualify for the full proposed $300 credit, joint filers would need to have made less than $75,000 in the previous year. For single filers, the income threshold for the maximum amount is no more than $50,000 per year.
Families who earn above that threshold could still be eligible to claim, albeit for a smaller amount based on a sliding scale. The absolute maximum eligibility cap is $100,000 for joint filers and $75,000 for single filers. As of 2022, the median household income in Illinois was $76,708 per year, according to the U.S. Census Bureau.
The credit would also not be counted as income in the case of those who are claiming any means tested benefits, the bill outlines. According to local news outlet 14 News, the change could impact almost half of all Illinois families. If approved, the act would come into effect on January 1, 2025.
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"It's a $300 credit that's going to go to half the children in the state of Illinois," Erion Malasi from Economic Security for Illinois told 14 News. "We get there by offering the credit to families that are making about the median income of the State of Illinois."
"The beauty of the child tax credit is that it's cash that families can utilize to make the choice that's right for their household. They're not limited in how they spend it. So if you need diapers that month, you can get them. You can spend it on clothes," Malasi continued. "We've worked in coalition with over 50 organizations to find a version of the child tax credit that's right for Illinois, and parents have time and time again said that $300 is enough to make a difference in their livelihoods."
However, given that Governor JB Pritzker's current budget requires $898 million in new taxes, according to Illinois Policy, Democrat Representative Margaret Croke has said the child tax credit may not create a "return on investment."
"Are we going to see the return of investment when it comes to that $300," she said, according to a report by WGEM. "If it's not enough to make a huge impact in someone's life that we're seeing in these other states, is it worth it to do at this moment in time where we're looking at a financial situation in the state that we have?"
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Newsweek has contacted Pritzker for comment on the legislation via email outside of normal working hours. As part of the budget, he put forward his own plans for a child tax credit for taxpayers with children under the age of three.
Other states have child tax credits that go well beyond what is being proposed in Illinois. For example, in 2023 Minnesota created a state-level child tax credit of $1,750 per qualifying child.
Uncommon Knowledge
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Aliss Higham is a Newsweek reporter based in Glasgow, Scotland. Her focus is reporting on issues across the U.S., including ... Read more
