(Skokie, IL) – The Illinois House of Representatives on Monday approved a $150 million tax relief bill targeting individual households.
The legislation, Senate Bill 400, which the House passed on a vote of 67-49, would increase Illinois’ Earned Income Tax Credit for low-income, working households from a maximum of $283 to $566, boosting worker take home pay $55 million in 2012 and $110 million in 2013.
According to Deputy House Majority Leader Lou Lang (D-Skokie), a married couple with three children earning $30,000 a year would pay $799 in Illinois income taxes under current law. The new tax relief bill would drop their tax bill to $625 this year and $600 next year.
“For many hard-working families, $200 is a significant amount of money to go back in their pocket,” said Lang. “In turn, they will likely spend that money at a local business, boosting the economy.”
More than 2.5 million people benefited from the tax credit in 2009.
In addition to raising the earned income tax credit, the legislation also raises the standard tax exemption for households from $2,000 to $2,050, indexing it for inflation.
“By raising the standard, individual tax exemption, we will be adding an additional $40 million to Illinois households,” said Lang.
House lawmakers also voted, 81-28, for legislation, Senate Bill 397, to provide tax relief to top Illinois employers, such as the Chicago Mercantile Exchange, Sears, and nearly 30,000 small businesses.
“The business tax relief will keep more than 8,100 jobs in Illinois,” said Lang.
Filed under: Illinois Taxes |