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Gov. Blagojevich signs
law expanding state's earned income tax credit to 100,000 more
Illinoisans
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[August 22, 2007]
SPRINGFIELD -- Gov. Rod R. Blagojevich signed legislation Tuesday
expanding eligibility for the Illinois earned income tax credit
refund to an additional 100,000 Illinoisans.
Senate Bill 338,
sponsored by state Rep. Barbara Flynn Currie, D-Chicago, and state
Sen. Jacqueline Y. Collins, D-Chicago, ends the provision in current
law that requires individuals to qualify for federal Temporary
Assistance for Needy Families money, known as TANF, in order to
receive an Illinois EITC refund.
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 "The Illinois earned income tax credit puts money back in the
pockets of hardworking Illinois families," Blagojevich said.
"Throughout this administration we increased the number of people
taking advantage of the Illinois EITC year after year, demonstrating
how effective this program is at getting funds to those who need it
most. This law will make sure that those Illinoisans who are working
hard get the assistance they need."
Senate Bill 338 will reduce unnecessary regulation and paperwork
currently blocking many in need of receiving the Illinois EITC.
Under previous law, individuals had to be not only eligible for an
EITC refund, they also had to remain eligible for the federal TANF
funds, which the state uses to pay for the Illinois EITC. By
blocking those not eligible for TANF, many individuals with foster
children or dependent adults over 18 did not receive a refund. The
old law also required those applying for the refund to fill out a
complicated worksheet.
TANF, a federal program, replaced the old "welfare" system and
gives states spending flexibility as long as they pursue one or more
of the goals of the block grant. The Illinois EITC was modeled after
the federal EITC credit that created as an incentive to work. In
2003, the governor signed legislation making the EITC refundable as
long as individuals and families were TANF-eligible. Under the new
law, the state will use money from the general revenue fund to
supplement TANF funds and pay the tax refunds for the additional
Illinoisans eligible.
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 The Illinois EITC equals 5 percent of the federal credit and this
year provides a maximum Illinois benefit of $227. The amount of the
federal credit is determined by family size and income, with the
maximum income of $38,348 for a typical family with two children.
"This legislation takes a step forward in cutting back red tape
and making life a little easier for those in our state whose
paychecks don't pay the bills," said Currie, bill sponsor in the
House. "In a year of rising gas prices, utility rates and grocery
costs, we need to give hardworking Illinoisans a helping hand, and I
believe expanding access to the EITC helps us do that."
Throughout the governor's administration, the number of people
receiving the Illinois EITC has increased yearly. In 2002, the
governor's first term, 638,000 individuals received refunds totaling
$50,333,753; last year 764,463 Illinoisans, more than ever before,
received refunds totaling $75,631,644.
The legislation becomes effective immediately.
[Text from file received from
the
Illinois Office of
Communication and Information]
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