IL SB0168

Creates a state child care credit equal to 25% of the federal tax credit for each qualifying child under Section 24 of the Internal Revenue Code for taxable years beginning January 1, 2024.

Applies only to qualified individual taxpayers whose federal adjusted gross income does not exceed the threshold amount defined in federal law, and whose qualifying children are age 13 or younger.

Allows excess credits to be refunded to taxpayers and exempts refunded amounts from counting as income or resources for means-tested benefit program eligibility determinations.

Provides proportional credit reduction for non-resident or part-year residents based on income attributable to Illinois.

Takes effect immediately upon becoming law.