Lawmakers have proposed a new $300 child tax credit in Illinois.

Many families in Illinois will be eligible for a new child tax credit next year that could net them $300 per child. Some state lawmakers recently proposed a new child tax credit in Illinois for families earning less than the median income. If approved, Illinois would join 14 other states that offer similar credits.

Illinois’ New Child Tax Credit: Who Can Get It?

On Wednesday, state Sen. Omar Aquino (D-Chicago), Rep. Marcus Evans Jr. (D-Chicago) and Rep. Mary Beth Canty (D-Arlington Heights) introduced a new proposal to provide eligible families with the following benefits: Bill 4917) was introduced. $300 per year child tax credit.

Under the proposal, single parents with annual income of less than $50,000 (or less than $75,000 for joint filers) would be eligible for the credit. The proposal also calls for providing an inflation-adjusted credit amount in subsequent years.

A $300 tax credit would benefit more than 1 million children and reduce child poverty in the state by more than 3 percent, according to a study by the Illinois Economic Policy Institute and the University of Illinois’ Middle Class Renewal Project.

This isn’t the first time state lawmakers have proposed creating a statewide child tax credit program. Several child tax credit proposals have been filed this session, including another proposal from Evans that would provide a tax credit of up to $700 per qualifying dependent.

Will we get enough support?

Those in favor of the proposal believe the new child tax credit would benefit working families as well as the state’s economy. This credit is estimated to generate more than $1 billion in local economic stimulus.

“It’s not just about dollars, it’s about stimulus to the local economy that will be the real catalyst for this,” Rep. Evans said at a press conference.

According to the Economic Policy Institute, about 60% of the funds allocated for the new tax credit will go to Black and brown families. More than 40 nonprofit, labor and community-based organizations support the child tax credit proposal.

Opponents of the bill argue it could put additional pressure on the state budget. The Governor’s Office of Management and Budget projects that spending will exceed revenues in fiscal year 2025. The state could face a deficit of $891 million. The $300 deductible is estimated to cost the state about $470 million annually.

The reduced amount in the proposed $300 child tax credit was decided upon after discussions with the governor’s office, said Erion Malasi, Illinois director of economic security policy and advocacy.

Alex Gough, a spokesman for the governor’s office, said the governor will review the proposal once it reaches his desk. Governor JB Pritzker is currently outlining his spending priorities for the upcoming fiscal year and is scheduled to address the Legislature at the state Capitol on February 21st.