Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2277 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2277 Introduced 2/7/2025, by Sen. John F. Curran SYNOPSIS AS INTRODUCED: 35 ILCS 5/21035 ILCS 5/210.5 Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2025, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual amount paid by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately. LRB104 11117 HLH 21199 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2277 Introduced 2/7/2025, by Sen. John F. Curran SYNOPSIS AS INTRODUCED: 35 ILCS 5/21035 ILCS 5/210.5 35 ILCS 5/210 35 ILCS 5/210.5 Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2025, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual amount paid by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately. LRB104 11117 HLH 21199 b LRB104 11117 HLH 21199 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2277 Introduced 2/7/2025, by Sen. John F. Curran SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/21035 ILCS 5/210.5 35 ILCS 5/210 35 ILCS 5/210.5
4	4	35 ILCS 5/210
5	5	35 ILCS 5/210.5
6	6	Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2025, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual amount paid by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately.
7	7	LRB104 11117 HLH 21199 b LRB104 11117 HLH 21199 b
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9	9	A BILL FOR
10	10	SB2277LRB104 11117 HLH 21199 b SB2277 LRB104 11117 HLH 21199 b
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12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 5. The Illinois Income Tax Act is amended by
16	16	5 changing Sections 210 and 210.5 as follows:
17	17	6 (35 ILCS 5/210)
18	18	7 Sec. 210. Dependent care assistance program tax credit.
19	19	8 (a) Beginning with tax years ending on or after June 30,
20	20	9 1995, each taxpayer who is primarily engaged in manufacturing
21	21	10 is entitled to a credit against the tax imposed by subsections
22	22	11 (a) and (b) of Section 201 in an amount equal to 5% of the
23	23	12 amount of expenditures by the taxpayer in the tax year for
24	24	13 which the credit is claimed, reported pursuant to Section
25	25	14 129(d)(7) of the Internal Revenue Code, to provide in the
26	26	15 Illinois premises of the taxpayer's workplace an on-site
27	27	16 facility dependent care assistance program under Section 129
28	28	17 of the Internal Revenue Code.
29	29	18 (b) If the amount of credit exceeds the tax liability for
30	30	19 the year, the excess may be carried forward and applied to the
31	31	20 tax liability of the 2 taxable years following the excess
32	32	21 credit year. The credit shall be applied to the earliest year
33	33	22 for which there is a tax liability. If there are credits from
34	34	23 more than one tax year that are available to offset a
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38	38	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2277 Introduced 2/7/2025, by Sen. John F. Curran SYNOPSIS AS INTRODUCED:
39	39	35 ILCS 5/21035 ILCS 5/210.5 35 ILCS 5/210 35 ILCS 5/210.5
40	40	35 ILCS 5/210
41	41	35 ILCS 5/210.5
42	42	Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2025, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual amount paid by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately.
43	43	LRB104 11117 HLH 21199 b LRB104 11117 HLH 21199 b
44	44	LRB104 11117 HLH 21199 b
45	45	A BILL FOR
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51	51	35 ILCS 5/210
52	52	35 ILCS 5/210.5
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71	71	1 liability, the earlier credit shall be applied first.
72	72	2 (c) A taxpayer claiming the credit provided by this
73	73	3 Section shall maintain and record such information as the
74	74	4 Department may require by regulation regarding the dependent
75	75	5 care assistance program for which credit is claimed. When
76	76	6 claiming the credit provided by this Section, the taxpayer
77	77	7 shall provide such information regarding the taxpayer's
78	78	8 provision of a dependent care assistance program under Section
79	79	9 129 of the Internal Revenue Code.
80	80	10 (d) If a taxpayer claims a credit under this Section for a
81	81	11 taxable year, then the taxpayer may not also claim a credit
82	82	12 under Section 210.5 for the same taxable year.
83	83	13 (Source: P.A. 88-505.)
84	84	14 (35 ILCS 5/210.5)
85	85	15 Sec. 210.5. Tax credit for employee child care.
86	86	16 (a) Each corporate taxpayer is entitled to a credit
87	87	17 against the tax imposed by subsections (a) and (b) of Section
88	88	18 201 as provided in this Section. For taxable years ending on or
89	89	19 after December 31, 2000 and on or before December 31, 2004, the
90	90	20 amount of the credit shall be equal to: (1) 30% of the start-up
91	91	21 costs expended by the corporate taxpayer to provide a child
92	92	22 care facility for the children of its employees; and (2) 5% of
93	93	23 the annual amount paid by the corporate taxpayer in providing
94	94	24 the child care facility for the children of its employees. For
95	95	25 taxable years ending after December 31, 2004 and prior to
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106	106	1 December 31, 2007, the amount of the credit shall be equal to
107	107	2 5% of the annual amount paid by the corporate taxpayer in
108	108	3 providing the child care facility for the children of its
109	109	4 employees. For taxable years ending on or after December 31,
110	110	5 2007 and before December 31, 2025, the amount of the credit
111	111	6 shall be equal to: (1) 30% of the start-up costs expended by
112	112	7 the corporate taxpayer to provide a child care facility for
113	113	8 the children of its employees; and (2) 5% of the annual amount
114	114	9 paid by the corporate taxpayer in providing the child care
115	115	10 facility for the children of its employees. For taxable years
116	116	11 ending on or after December 31, 2025, the amount of the credit
117	117	12 shall be equal to: (1) 50% of the start-up costs expended by
118	118	13 the corporate taxpayer to provide a child care facility for
119	119	14 the children of its employees; and (2) 20% of the annual amount
120	120	15 paid by the corporate taxpayer to (i) provide an on-site child
121	121	16 care facility for the children of its employees, (ii) provide
122	122	17 child care offsite for the children of its employees, or (iii)
123	123	18 a combination of (i) and (ii). This amendatory Act of the 104th
124	124	19 General Assembly is not intended to make any substantive
125	125	20 changes with respect to taxable years ending prior to December
126	126	21 31, 2025. in an amount equal to (i) for taxable years ending on
127	127	22 or after December 31, 2000 and on or before December 31, 2004
128	128	23 and for taxable years ending on or after December 31, 2007, 30%
129	129	24 of the start-up costs expended by the corporate taxpayer to
130	130	25 provide a child care facility for the children of its
131	131	26 employees and (ii) for taxable years ending on or after
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142	142	1 December 31, 2000, 5% of the annual amount paid by the
143	143	2 corporate taxpayer in providing the child care facility for
144	144	3 the children of its employees. The provisions of Section 250
145	145	4 do not apply to the credits allowed under this Section. If the
146	146	5 5% credit authorized under item (ii) of this Section
147	147	6 subsection is claimed, the 5% credit authorized under Section
148	148	7 210 cannot also be claimed.
149	149	8 To receive the tax credit under this Section a corporate
150	150	9 taxpayer may do one or more of the following: it may either
151	151	10 independently provide and operate a child care facility for
152	152	11 the children of its employees; or it may join in a partnership
153	153	12 with one or more other corporations to jointly provide and
154	154	13 operate a child care facility for the children of employees of
155	155	14 the corporations in the partnership; or it may coordinate with
156	156	15 an independent child care facility to provide care for the
157	157	16 children of employees.
158	158	17 (b) The tax credit may not reduce the taxpayer's liability
159	159	18 to less than zero. If the amount of the tax credit exceeds the
160	160	19 tax liability for the year, the excess may be carried forward
161	161	20 and applied to the tax liability of the 5 taxable years
162	162	21 following the excess credit year. The credit must be applied
163	163	22 to the earliest year for which there is a tax liability. If
164	164	23 there are credits from more than one tax year that are
165	165	24 available to offset a liability, then the earlier credit must
166	166	25 be applied first.
167	167	26 (c) As used in this Section, "start-up costs" means
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178	178	1 planning, site-preparation, construction, renovation, or
179	179	2 acquisition of a child care facility. As used in this Section,
180	180	3 "child care facility" is limited to a child care facility
181	181	4 located in Illinois.
182	182	5 (d) A corporate taxpayer claiming the credit provided by
183	183	6 this Section shall maintain and record such information as the
184	184	7 Department may require by rule regarding the child care
185	185	8 facility for which the credit is claimed.
186	186	9 (Source: P.A. 95-648, eff. 10-11-07.)
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