IL HB5389

Creates a child care tax credit for qualified taxpayers with at least one eligible dependent, effective for tax years beginning January 1, 2023.

Credit amounts $1,500 for the first eligible dependent plus $500 for each additional dependent, capped at $2,500 per taxpayer per year.

Eligible dependent defined as an individual under 17 years old claimed as a dependent on the taxpayer's federal income tax return.

Qualified taxpayer must have federal adjusted gross income not exceeding $75,000 for joint filers or $45,000 for all other taxpayers.

Annual statewide credit cap of $100,000,000 awarded on a first-come-first-served basis, with unused credits allowed to carry forward up to 5 taxable years.