Illinois Democratic lawmakers, advocates push for $300 child tax credit

SPRINGFIELD, Ill. (WAND) — Democratic lawmakers hope to see Illinois become the fifteenth state to create a child tax credit to help families struggling to get by.

Lawmakers and advocates told reporters Wednesday that their plan could provide families earning less than the median income $300 per child.

Experts believe the child tax credit could benefit 1.4 million children and generate over $1 billion for local economies. Sponsors said the extra money could help people pay for groceries, rent or utility bills.

"It might not sound like much to some, but that is money that is going directly into people's pockets that they get to decide how they want to utilize it," said Sen. Omar Aquino (D-Chicago). "Studies show they spend it right in their communities, so that small business that we also want to stand up is going to see a benefit too."

Preliminary estimates by the Illinois Economic Policy Institute show roughly 60% of the money allocated for the new tax credit would go to Black and brown families. Sponsors and advocates said the tax credit could cost the state $470 million annually.

"Right now, Illinois ranks as the worst state in the nation for racial financial equality," said Rep. Marcus Evans (D-Chicago). "That's why I'm proud to introduce the bill to create a child tax credit. In one move, we can invest in historically disenfranchised communities and create meaningful opportunities for families to rise."

The proposal could help single parents making less than $50,000 or couples earning under $75,000. Liliana Olayo, an advocate with Community Organizing and Family Issues in Chicago, said she works hard to provide for her children and grandchildren. She stressed that the extra bit of relief from a child tax credit could go a long way for many families.

"The pandemic hit my family really hard because my hours got cut. As an ITIN filer, I didn't qualify for federal stimulus," Olayo said. "These day I'm doing better and I'm trying to survive, but it's not always been easy."

An ITIN does not provide legal immigration status and cannot be used to prove legal presence in the United States, according to the American Immigration Council. Olayo explained ITIN filers and many other immigrant families across the country are not able to qualify for the federal child tax credit.

"I hope that the legislature and the governor understand how impactful and important this would be," Olayo added. "It would be a true blessing."

While many argue this should be a top priority, lawmakers will need to consider multiple potential tax credits during budget negotiations this spring. A coalition of over 40 nonprofit, labor, and community-based organizations support the proposal.