IL SB2263

Creates a new Illinois income tax credit for child care equal to 25% of the federal child tax credit under Internal Revenue Code Section 24

Applies to taxable years beginning on or after January 1, 2025, for taxpayers with qualifying children age 13 or younger who meet federal income thresholds

Credit is fully refundable, meaning taxpayers receive the excess as a refund if the credit exceeds their tax liability

Refunded credit amounts will not count as income or resources for determining eligibility in means-tested government benefit programs, unless required by federal law

Non-residents and part-year residents receive the credit proportionally based on income attributable to Illinois