By allowing taxpayers to claim this credit, HB3704 is expected to provide necessary financial assistance to families with dependents who rely on services supported by the Department of Human Services. The immediate effect of this bill, aimed at taxpayers filing their returns for the tax year ending December 31, 2023, could lead to increased disposable income for these families, which could, in turn, benefit local economies as families may use the extra funds for various expenditures. This law is set to be effective immediately upon passage.
House Bill 3704, introduced by Rep. Suzanne M. Ness, amends the Illinois Income Tax Act by implementing a refundable income tax credit aimed at families with dependents who are registered in the PUNS (Prioritization of Urgency of Need for Services) database. The bill proposes a tax credit of $1,500 for taxpayers whose dependents are listed in this database during the taxable year. This initiative is intended to alleviate some financial burdens for families who may have dependents requiring additional state services due to disabilities or other needs, thus recognizing the importance of supporting these families financially.
While the bill presents potential benefits for affected families, the implementation of such tax credits can lead to discussions about the financial implications for the state's budget. Critics may raise concerns regarding the sustainability of providing such refunds and the potential impact on funding for other state services. Furthermore, the comprehensive list of families who will benefit from this credit and the operational capability to manage these claims could be topics for further scrutiny, especially if there are concerns about the efficiency and accuracy of the dependency verification process through the PUNS database.