Lauren

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Tax relief coming for Illinois

Governor JB Pritzker just signed the fiscal year 2023 budget into law, providing $1.8 billion in tax relief to the working families of Illinois.

“The fiscal year 2023 budget provides historic funding for education, human services, law enforcement and violence prevention. It prioritizes fiscal responsibility, funding pensions at $500 million more than required, repaying the state’s remaining outstanding debts, and putting $1 billion in the Budget Stabilization Fund, also known as the “rainy day” fund, for unforeseen emergencies.”

$1.83 BILLION IN TAX RELIEF FOR FAMILIES

• Suspends the tax on groceries for one year – saving consumers $400 million
• Freezes the motor fuel tax for six months – saving consumers $70 million
• Provides $520 million for a one-time property tax rebate – 5% of property taxes paid, up to $300 per household
• Permanently expands the earned income tax credit from 18 to 20 percent of the federal credit while expanding the number of households covered – putting $100 million per year back into the pockets of working families who need it most
• Provides $685 million for direct rebate checks to working families

o $50 per individual
o $100 per dependent, up to three children per family

  • Income limits: $200,000 for individuals and $400,000 for joint filers

• Provides families with a “Back to School” sales tax holiday on clothing and school supplies for a week in August and doubles tax credit for teachers who buy classroom supplies – saving $50 million

More from the Illinois.gov press release HERE.

Photo by: Sarah Pflug