SPRINGFIELD (WGEM) – Illinois parents struggling to make ends meet could be getting some help as the state’s fiscal year 2025 budget includes a new child tax credit.

“The Illinois child tax credit is based off of what the federal government did during the pandemic to institute their own child tax credit to kind of give families that little extra boost,” said state Sen. Mike Halpin, D-Rock Island.

The credit is open to families with kids ages 12 and younger who qualify for the Earned Income Tax Credit (EITC). It’s a federal and state credit for low- and middle-income earners. Families who qualify will add an additional 20% to their state EITC refund next year. That number jumps to 40% in subsequent years.

Erion Malasi with Economic Security for Illinois, an organization supporting the credit, said it could mean an extra $150-$600 for some Illinois families.

“When parents receive the child tax credit, it’s spent locally and immediately, and that benefits every main street, every downtown across Illinois, making sure our businesses can stay afloat especially as we recover from the COVID-19 pandemic,” Malasi said.

He said every child tax credit dollar creates $2.50 in economic stimulus.

Halpin said the extra cash will make a big difference to families who need it.

“For the families that get it, it’s going to go a long way,” he said. “I’ve talked to them. It could be a matter of just a simple car repair or avoiding problems not being able to pay for a car repair, it can assist with a day of child care or it could just help with an extra week of groceries.”

In total, the play will cost $50 in FY25 and $100 million in future years.

Lawmakers and advocates originally asked for a $300 per child tax credit, regardless of age, for joint filers would made less than $75,000 the previous year, $50,000 for single filers.

Both Halpin and Malasi said they will continue to push to expand the state’ child tax credit in future legislative sessions.

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