IL HB2916

Establishes an Illinois income tax credit for qualified taxpayers with student loan repayment expenses, applicable to taxable years beginning January 1, 2023 and later.

Maximum annual credit amounts vary by degree level: $6,000 for master's degrees or higher, $4,000 for bachelor's degrees, and $1,000 for associate degrees.

Qualifies taxpayers who hold an associate, bachelor's, or graduate degree from a U.S. Department of Education-accredited institution and have annual student loan repayment expenses.

Excess credits that exceed tax liability may be carried forward and applied to tax liabilities in the following 5 taxable years, with earlier credits applied first.

Takes effect immediately upon becoming law.