HB2959 Summary

• Creates income tax credit for taxpayers with federal adjusted gross income below 185% of federal poverty level whose children attend high-quality early childhood education programs rated Gold Circle ($3,000 per child) or Silver Circle ($2,000 per child) under ExceleRate Illinois system, effective for tax years beginning January 1, 2018 and later.

• Establishes income tax credit for child care providers rated Gold Circle ($1,500 per child) or Silver Circle ($1,000 per child) under ExceleRate Illinois system for each eligible child enrolled at least 6 months who participates in child care assistance program, receives foster care services, or both.

• Provides income tax credit for employees at licensed day care centers, homes, and group day care homes employed at least 6 months with Gateways to Opportunity credentials, ranging from $1,500 to $3,500 depending on credential level, with Illinois Director credential holders receiving $2,500 to $3,500.

• Credit amounts adjust annually beginning January 1, 2020 based on Employment Cost Index increases published by U.S. Department of Labor.

• All credits are refundable if they exceed tax liability; child custodian credits are refundable for taxpayers below 100% federal poverty level; all credits exempt from Section 250 sunset provisions.