SPRINGFIELD (WGEM) – Illinois state lawmakers discussed a proposal Wednesday giving families up to a $300 child tax credit.

The state House Revenue and Finance Committee held a subject matter hearing on the proposal, which would give families up to an additional $300 per kid annually.

Though lawmakers filed a bill proposing the tax credit, lawmakers would pass it through the state budget.

To qualify for the full $300 credit, joint filers would need to make less than $75,000 the previous year, $50,000 for single filers. Families who make slightly above the threshold could still be eligible for the tax credit on a sliding scale meaning their credit would be smaller.

Advocates said research shows parents spend those extra dollars in the community.

“Parents spend it on clothing, they spend it on transportation, they spend it on making sure that they can keep up on their monthly bills. And that’s all dollars that flow right into the local economy generating a return for our main streets across Illinois and also to the state’s coffers,” said Erion Malasi with Economic Security for Illinois.

State Rep. Margaret Croke, D-Chicago, however, questioned whether a tax credit of only $300 is worth it for the state.

“Are we going to see the return of investment when it comes to that $300,” she said. “If it’s not enough to make a huge impact in someone’s life that we’re seeing in these other states, is it worth it to do at this moment in time where we’re looking at a financial situation in the state that we have?”

Malasi said the tax credit would cost the state around $300 million annually. It would impact around $1.4 million Illinois children.

Illinois Gov. JB Pritzker had a more modest child tax credit in his fiscal year 2025 budget proposal. It would only impact families with kids under 3 and is projected to cost $12 million.

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