HB2869 Summary

• Amends the Illinois Income Tax Act to increase the earned income tax credit from 18% to 36% of the federal earned income tax credit.

• The new 36% credit rate applies to taxable years beginning on or after January 1, 2020.

• Maintains the previous tiered credit structure for earlier years: 5% (2000-2012), 7.5% (2012-2013), 10% (2013-2017), 14% (2017-2018), and 18% (2018-2020).

• For non-residents and part-year residents, the credit amount is proportional to income attributable to Illinois.

• Excess credits beyond tax liability are refunded to taxpayers and excluded from income/resources calculations for means-tested government benefit programs.