(Chicago) – Illinois legislators may have adjourned on May 31, but GOP lawmakers are still proposing new bills.
Illinois House Republican Leader Tom Cross, State Reps. Adam Brown, C.D. Davidsmeyer, Rich Brauer, and Bill Mitchell will unveil a package of “college affordability” bills at a press conference in Springfield on Thursday morning.
The GOP plan would create a $1,000 tax credit to help “middle class families”, who earn up to $150,000 annually, pay for college expenses at an Illinois college where tuition and fees are greater than $1,000. The credit would accrue for each semester.
The package, which will be unveiled by lawmakers who are unlikely contenders to succeed Cross as House Minority Leader who is planning a bid for Attorney General, will also include legislation that will “unlock” the limited tax deduction rights currently granted to Illinois taxpayers who are saving for their children’s college education.
Under current Illinois law, this “upfront” deduction is only offered to contributors in state administered College Savings Pool account or the Illinois Prepaid Tuition Trust Fund. Right now, private-sector 529 programs, including programs operated by financial institutions outside of Illinois, are ineligible for this upfront deduction.
As a result, some Illinois families who are participating in a 529 program and saving for the future are ineligible under current law for this upfront Illinois individual income tax deduction.
The House Republicans’ proposal will grant an individual income tax deduction to families who are saving money under the umbrella of an approved 529 savings program up to $10,000 of annual contributions.
The GOP, which has severely criticized Democrats for increased spending while the state faces more than $7 billion in unpaid bills, has yet to estimate the cost of its own new spending plan.
The press conference will be held at the University of Illinois–Springfield campus, beginning at 11:30 a.m.
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