Illinois Senate Bill SB1647

Illinois 2025-2026 Regular Session

• Introduced: 2/5/25
• Refer: 2/5/25
• Refer: 2/11/25
• Refer: 6/2/25

Caption

INC TX-EDUCATION

Impact

If enacted, SB1647 will have a significant impact on state tax law by providing financial relief to families seeking preschool education for their children. The bill aims to enhance access to early childhood education, which is commonly viewed as a critical foundation for children's cognitive and social development. Additionally, it positions preschool expenses in a manner that allows for potential refunds if the credits exceed tax liabilities, ensuring that families benefit from the policy regardless of their overall tax burden.

Summary

SB1647 proposes an amendment to the Illinois Income Tax Act that introduces a tax credit aimed at custodians of children attending eligible preschool programs. The bill allows taxpayers who are custodians of one or more children aged between 3 to 5 years to receive credit for eligible expenses incurred during the taxable year. The credit covers 100% of these expenses, up to a maximum of $1,500 per child, encouraging families to enroll their children in early childhood education programs.

Contention

Notable points of contention surrounding SB1647 may revolve around the adequacy and availability of eligible preschool programs, as well as the long-term fiscal implications of expanding tax credits. Stakeholders may debate whether this credit effectively addresses socio-economic disparities or if it merely provides moderate assistance to families who already have access to resources. Furthermore, discussions may ensue regarding the qualification criteria for programs that are deemed 'eligible' and whether the proposed financial limits are sufficient to cover the actual costs incurred by families in sending their children to preschool.