WeVote
Log In

Bill

Bill

SB 3783

INC TX-EDUCATION

104th Regular Session Introduced by Darby Hills and 3 co-sponsors

Creates a refundable state income tax credit up to $1,500 per eligible child to cover preschool expenses for 3–5 year-olds attending qualified programs in Illinois.

Added as Co-Sponsor Sen. Dave Syverson
0
WeVote Research Nonpartisan
Bill Summary · SB 3783

Summary of SB3783 (104th Illinois General Assembly)

Title and Purpose

  • Title: INC TX-EDUCATION
  • Purpose: Create a state income tax credit to support families who send their children to eligible preschool programs in Illinois. The credit is targeted at custodians (parents or legal guardians) of children aged 3 to 5 who attend an eligible preschool.

Key Provisions

  • New Tax Credit: Adds Section 246 to the Illinois Income Tax Act.
    • Taxable years: Beginning on or after January 1, 2026.
    • Credit amount: 100% of eligible preschool expenses incurred by the custodian during the tax year, up to a per-child cap of $1,500.
    • Non-refundability rule: The credit cannot reduce the taxpayer’s liability below zero. If the credit exceeds the tax liability, the excess may be refunded to the taxpayer.
  • Definitions:
    • Custodian: An Illinois resident who is the parent or legal guardian of a child aged 3 to 5 during the tax year.
    • Eligible expenses: Tuition, fees, and necessary school supplies related to attendance at an eligible preschool. Excludes expenses for which the taxpayer already claims a federal deduction for the same year.
    • Eligible preschool: A preschool program for ages 3–5 that is:
    • Operated by a public school district or another eligible entity, and
    • Employs at least one teacher with a Professional Educator License (PEL) with an early childhood education endorsement.
  • Interaction with Other Provisions: The credit is exempt from the provisions of Section 14250 (the typical conformity/definition provision for personal exemptions and other credits in Illinois law), per the bill’s text.

Who Is Affected

  • Primary beneficiaries: Illinois residents who are custodians of 3–5-year-old children who attend an eligible preschool in Illinois.
  • Preschools: Eligible programs that are publicly operated or otherwise eligible, provided they employ licensed teachers with early childhood credentials, may qualify for families to claim the credit for eligible expenses.
  • Taxpayers: If the eligible expenses exceed the tax liability, taxpayers may receive a refund of the excess credit.

Financial and Policy Details

  • Credit Cap: $1,500 per eligible child per tax year.
  • Credit Coverage: 100% of eligible expenses (tuition, fees, and necessary school supplies) paid for the child’s attendance, up to the $1,500 cap.
  • Claim Eligibility: The expenses cannot be claimed as a federal deduction in the same year.
  • Refundability: The credit can be refunded if it exceeds tax liability (i.e., it is refundable up to the allowed limit).

Effective Date and Procedural Timeline

  • Effective Date: Immediately upon becoming law (as introduced, the act states “Effective immediately”).
  • Status/Timeline Highlights:
    • Referred to the Revenue committee.
    • Several procedural deadlines established for 2026 (e.g., Rule 2-10 deadlines in spring 2026).
    • Bill introduced February 5, 2026; sponsored by Sen. Darby A. Hills (co-sponsor listed).

Practical Implications

  • The program is designed to reduce the after-tax cost of preschool for families with young children, potentially increasing access to early childhood education for participating households.
  • The program incentivizes attendance at preschools that are properly credentialed and staffed by licensed early childhood teachers.
  • By making the credit refundable (in cases where it exceeds liability), it provides a direct cash benefit to eligible families, which could affect household budgeting and school choice considerations.

If you’d like, I can compare SB3783 to existing Illinois tax credits and provide a quick fiscal impact estimate or potential year-over-year cost based on scenarios (e.g., different numbers of eligible children and enrollment rates).

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.