Bills being considered by Illinois lawmakers could potentially impact hundreds of thousands of households and reduce childhood poverty by nearly 8%, according to a study of the bill’s impacts.
The bills, introduced in both the House and Senate would award parents a tax credit for each dependent child in their household.
Senate Bill 1444 calls for a credit of up to $700 per dependent child, according to the language of the bill.
The tax credit would be reduced by $24 for each $1,000 by which the taxpayer’s net income exceeds $75,000 on a joint return or $50,000 in the case of an individual return.
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According to a study published by the Illinois Economic Policy Institute, the Senate bill would impact more than 800,000 households, reducing childhood poverty by 7.6% and reducing the number of children in poverty by more than 32,000.
The study found that the legislation would cost approximately $1 billion per year, but researchers tell WBEZ that the bill would likely offset those costs thanks to reductions in state spending on assistance for low-income families.
The discussions over the bill come as a measure is considered by Congress to increase the maximum credit per child to $2,000 from $1,600 through 2025.
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An estimated 500,000 children would be lifted out of poverty with the expansion, according to reports.
