IL HB3957

Amends the Illinois Income Tax Act to create a state income tax credit based on the federal child and dependent care credit under Internal Revenue Code Section 21, effective for tax years beginning January 1, 2016 and later.

Credit amount varies by adjusted gross income: 50% of the federal credit for taxpayers with AGI of $25,000 or less; 30% for AGI between $25,000 and $35,000; and 10% for AGI exceeding $35,000.

Excess credits that exceed a taxpayer's income tax liability for the year are refundable to the taxpayer.

Refunds received under this credit are excluded from income and resources when determining eligibility or benefit levels for means-tested government assistance programs, unless federal law requires inclusion.

The credit is exempt from the sunset provisions of Section 250 of the Illinois Income Tax Act.