SB 3785

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Full Text of SB3785
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	SB3785 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3785
Introduced 2/5/2026, by Sen. Darby A. Hills
SYNOPSIS AS INTRODUCED:
35 ILCS 5/210
35 ILCS 5/210.5
Amends the Illinois Income Tax Act. Provides that, for taxable years ending on or after December 31, 2026, the credit for employee child care shall be in an amount equal to: (1) 50% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees; and (2) 20% of the annual amount paid by the corporate taxpayer to (i) provide an on-site child care facility for the children of its employees, (ii) provide child care offsite for the children of its employees, or (iii) a combination of (i) and (ii) (currently, 30% of the start-up costs and 5% of the annual amount paid by the taxpayer in providing the child care facility). Provides that the taxpayer may coordinate with an independent child care facility to provide care for the children of employees. Effective immediately.
LRB104 19609 HLH 33058 b
A BILL FOR
		SB3785		LRB104 19609 HLH 33058 b
1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5changing Sections 210 and 210.5 as follows:
6    (35 ILCS 5/210)
7    Sec. 210. Dependent care assistance program tax credit.
8    (a) Beginning with tax years ending on or after June 30,
91995, each taxpayer who is primarily engaged in manufacturing
10is entitled to a credit against the tax imposed by subsections
11(a) and (b) of Section 201 in an amount equal to 5% of the
12amount of expenditures by the taxpayer in the tax year for
13which the credit is claimed, reported pursuant to Section
14129(d)(7) of the Internal Revenue Code, to provide in the
15Illinois premises of the taxpayer's workplace an on-site
16facility dependent care assistance program under Section 129
17of the Internal Revenue Code.
18    (b) If the amount of credit exceeds the tax liability for
19the year, the excess may be carried forward and applied to the
20tax liability of the 2 taxable years following the excess
21credit year. The credit shall be applied to the earliest year
22for which there is a tax liability. If there are credits from
23more than one tax year that are available to offset a
		SB3785	- 2 -	LRB104 19609 HLH 33058 b
1liability, the earlier credit shall be applied first.
2    (c) A taxpayer claiming the credit provided by this
3Section shall maintain and record such information as the
4Department may require by regulation regarding the dependent
5care assistance program for which credit is claimed. When
6claiming the credit provided by this Section, the taxpayer
7shall provide such information regarding the taxpayer's
8provision of a dependent care assistance program under Section
9129 of the Internal Revenue Code.
10    (d) If a taxpayer claims a credit under this Section for a 
11taxable year, then the taxpayer may not also claim a credit 
12under Section 210.5 for the same taxable year.
13(Source: P.A. 88-505.)
14    (35 ILCS 5/210.5)
15    Sec. 210.5. Tax credit for employee child care.
16    (a) Each corporate taxpayer is entitled to a credit
17against the tax imposed by subsections (a) and (b) of Section
18201 as provided in this Section. For taxable years ending on or 
19after December 31, 2000 and on or before December 31, 2004, the 
20amount of the credit shall be equal to: (1) 30% of the start-up 
21costs expended by the corporate taxpayer to provide a child 
22care facility for the children of its employees; and (2) 5% of 
23the annual amount paid by the corporate taxpayer in providing 
24the child care facility for the children of its employees. For 
25taxable years ending after December 31, 2004 and prior to 
		SB3785	- 3 -	LRB104 19609 HLH 33058 b
1December 31, 2007, the amount of the credit shall be equal to 
25% of the annual amount paid by the corporate taxpayer in 
3providing the child care facility for the children of its 
4employees. For taxable years ending on or after December 31, 
52007 and before December 31, 2026, the amount of the credit 
6shall be equal to: (1) 30% of the start-up costs expended by 
7the corporate taxpayer to provide a child care facility for 
8the children of its employees; and (2) 5% of the annual amount 
9paid by the corporate taxpayer in providing the child care 
10facility for the children of its employees. For taxable years 
11ending on or after December 31, 2026, the amount of the credit 
12shall be equal to: (1) 50% of the start-up costs expended by 
13the corporate taxpayer to provide a child care facility for 
14the children of its employees; and (2) 20% of the annual amount 
15paid by the corporate taxpayer to (i) provide an on-site child 
16care facility for the children of its employees, (ii) provide 
17child care offsite for the children of its employees, or (iii) 
18a combination of (i) and (ii). This amendatory Act of the 104th 
19General Assembly is not intended to make any substantive 
20changes with respect to taxable years ending prior to December 
2131, 2026. [in an amount equal to (i) for taxable years ending on ]
22[or after December 31, 2000 and on or before December 31, 2004 ]
23[and for taxable years ending on or after December 31, 2007, 30% ]
24[of the start-up costs expended by the corporate taxpayer to ]
25[provide a child care facility for the children of its ]
26[employees and (ii) for taxable years ending on or after ]
		SB3785	- 4 -	LRB104 19609 HLH 33058 b
1[December 31, 2000, 5% of the annual amount paid by the ]
2[corporate taxpayer in providing the child care facility for ]
3[the children of its employees.] The provisions of Section 250
4do not apply to the credits allowed under this Section. If the
5[5%] credit authorized under [item (ii) of] this Section
6[subsection] is claimed, the [5%] credit authorized under Section
7210 cannot also be claimed.
8    To receive the tax credit under this Section a corporate
9taxpayer may do one or more of the following: it may [either]
10independently provide and operate a child care facility for
11the children of its employees; [or] it may join in a partnership
12with one or more other corporations to jointly provide and
13operate a child care facility for the children of employees of
14the corporations in the partnership; or it may coordinate with 
15an independent child care facility to provide care for the 
16children of employees.
17    (b) The tax credit may not reduce the taxpayer's liability
18to less than zero. If the amount of the tax credit exceeds the
19tax liability for the year, the excess may be carried forward
20and applied to the tax liability of the 5 taxable years
21following the excess credit year. The credit must be applied
22to the earliest year for which there is a tax liability. If
23there are credits from more than one tax year that are
24available to offset a liability, then the earlier credit must
25be applied first.
26    (c) As used in this Section, "start-up costs" means
		SB3785	- 5 -	LRB104 19609 HLH 33058 b
1planning, site-preparation, construction, renovation, or
2acquisition of a child care facility. As used in this Section,
3"child care facility" is limited to a child care facility
4located in Illinois.
5    (d) A corporate taxpayer claiming the credit provided by
6this Section shall maintain and record such information as the
7Department may require by rule regarding the child care
8facility for which the credit is claimed.
9(Source: P.A. 95-648, eff. 10-11-07.)
10    Section 99. Effective date. This Act takes effect upon
11becoming law.