INCOME TAX-TUITION CREDIT
If enacted, this legislation would provide much-needed financial assistance to households with college students, potentially increasing college enrollment and completion rates among individuals under 24 years of age. It specifically targets residents of Illinois attending public or private colleges, community colleges, and vocational schools that participate in federal student loan programs, thereby promoting access to higher education across various demographics.
SB0210, introduced by Senator Laura M. Murphy, proposes an amendment to the Illinois Income Tax Act by introducing a college tuition expense credit. This bill allows taxpayers with qualifying students as dependents to claim a tax credit of up to $2,000 for qualified tuition and fee expenses incurred during the taxable year. The credit aims to alleviate the financial burden of higher education on families and foster educational opportunities for students who are residents of Illinois and enrolled full-time in qualifying institutions.
SB0210 aims to enhance educational equity by providing financial incentives for families to support their children's education. As discussions progress, stakeholders will need to weigh the benefits of increased access to education against the fiscal implications for the state's budget and the equitable distribution of the tax credit.
There are considerations regarding the eligibility criteria, particularly the stipulated income limits to qualify for the credit. Taxpayers must have an adjusted gross income not exceeding $250,000 for joint filers or $125,000 for other taxpayers. This provision may spark debate about its fairness and the potential exclusion of families with higher income levels who may still face substantial educational expenses.