State Tax Problems

Illinois Lawmakers Seek Permanent Child Tax Credit

Illinois Lawmakers Seek Permanent Child Tax Credit

Some state lawmakers in Illinois are seeking a permanent child tax credit to help families. 

Chicago news station WTTW reported on the proposal, noting that State Representative Marcus Evans Jr., the bill's sponsor, believes the implementation of a permanent child tax credit at the state level would support to support low-income, working families. 

He also believes the tax credit would bolster the economy by giving these families disposable income they don't have right now.

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Credit: Sanya Kushak/Getty Images

The existing legislative proposition would allow for up to $700 per child for eligible families. Those who would qualify for the full amount are married filers earning less than $75,000 per year together and single filers earning less than $50,000 per year.

The credit would apply to children 17 years of age and younger, and would go into effect during the 2024 tax year if it passes.

It may not be smooth sailing for Evans, Jr. and his supporters, however. NPR Illinois noted that the state child tax credit may face an uphill battle. 

This is due in large part to the state budget. 

Although Illinois operated with multi-billion dollar surpluses in 2021 and 2022, the Governor’s Office of Management and Budget has projected that state finances could turn into deficits as early as the 2025 fiscal year. This is partially due to the fact that pandemic-era government relief programs no longer exist.

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Credit: pabradyphoto/Getty Images

NPR also reported that Illinois Comptroller Susana Mendoza has specifically cautioned lawmakers not to use the current surpluses to enact new, permanent programs that would require long-term funding.

The federal child tax credit, which was expanded during the COVID-19 pandemic, is immensely popular so it is not surprising that states would seek to create their own similar tax relief programs. 

What do you think about the proposed Illinois child tax credit?

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Rebekah Barton

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