IL HB3704

Amends the Illinois Income Tax Act to create a new refundable income tax credit for taxpayers with dependents included in the PUNS database maintained by the Department of Human Services.

Provides a $1,500 refundable credit for each dependent included in the PUNS database during the taxable year, applicable to tax years ending on or after December 31, 2023.

Defines a dependent as an individual the taxpayer is eligible to claim as a dependent for federal income tax purposes.

Allows the credit to reduce tax liability below zero, with excess amounts refunded to the taxpayer.

Takes effect immediately upon becoming law and is exempt from Section 250 provisions of the Illinois Income Tax Act.