New $700 Illinois Child Tax Credit Could Become a Reality Soon

The Illinois Senate recently approved Governor JB Pritzker’s proposed fiscal year 2025 budget. The proposed budget includes, among other things, a new Illinois child tax credit for families with children age 12 and younger. The budget is scheduled to go into effect July 1 if approved by the House, which is scheduled to reconvene on Tuesday to complete the session’s work.

Fiscal Year 2025 Budget: What Does It Include?

On Sunday night, the Democratic-run Illinois Senate approved the proposed $53 billion budget by a vote of 38 to 21. No Republican lawmakers voted in favor of the budget, arguing it would prioritize non-citizens and increase spending.

Illinois expects to raise $43 billion in personal, corporate and sales taxes, with the remainder expected to come from other sources, including lottery and gambling revenue. The budget would raise another $870 million in resident taxes, most of which would come from sports betting in the form of a tax rate increase from 15% to 35%.

The proposal includes $182 million to cover the cost of shelters and other services for newly arrived immigrants in Texas. The budget also allocates $440 million for a Medicaid-style health benefits plan for non-citizens and $10 million for a new program that will repay low-income residents’ outstanding medical debt to collection agencies.

Governor Pritzker’s budget proposal calls for eliminating the 1% grocery tax starting January 1, 2026, and allocating $10 million for “food deserts in underserved communities.” Because some municipalities rely heavily on grocery tax revenue, the proposal would allow local governments to raise their own taxes until 2026.

The budget also allocates $23 million to reduce deaths among Black women during pregnancy. It is estimated that black women die at three times the rate of white women from pregnancy-related causes due to inequities in medical education and access.

New Illinois Child Tax Credit: How much can you get?

The proposed new Illinois child tax credit would cost the state $50 million. This program provides a $700 tax credit to families with children 12 years of age and younger. A new Illinois child tax credit could reduce child poverty by 7.6 percent, according to a study by the Illinois Economic Policy Institute.

Governor Pritzker’s budget proposal also increases funding for the Smart Start Illinois initiative from $200 million to $400 million in 2025. The program includes three key initiatives: securing 20,000 new preschool seats, expanding access to home visiting and early intervention services, and increasing wages. For childcare workers.

To make Illinois a future hub for artificial intelligence development, the budget allocates $500 million to boost quantum computing. The funds will be used to develop a quantum campus in collaboration with the University of Illinois, Chicago Quantum Exchange, and the University of Chicago.

Some of the funding will go towards site preparation and infrastructure for the technology hub, as well as building a cryogenic facility for computers.