Tax Break For Illinois Residents Part Of Budget Deal To Help With Rising Costs

Leaders in Illinois announced a state budget agreement on Thursday that provides tax relief to working families in the state.

The agreement “delivers more than $1.8 billion in tax relief to Illinois residents, adds $1 billion to our state's long-depleted Rainy-Day Fund,” Gov. J.B. Pritzker (D) said.

Broken down, the agreement means Illinois families would get $1.83 billion in tax relief by suspending tax on groceries for a year which could save consumers an estimated $400 million. The bill also halts the motor fuel tax for six months to combat rising gas prices. The motor fuel tax halt is expected to save Illinois residents an estimated $70 million.

The state budget agreement also doubles the property tax rebate for up to $300 per household and expands “the earned income tax credit” by making it permanent, giving back an estimated $100 million to Illinois families.

Checks for working families are also included in the bill at $50 per person and $100 per child. Up to three children per family are included for those making up to, but not over, $200,000 per year or a joint $400,000 per year. There is also “back to school tax relief” included in the agrement which is expected to save included residents $50 million.

Speaker of the Illinois House of Representatives Chris Welch (D) said that the budget “will say Illinoisans, we hear you...All of this in direct response to inflationary pressures so many hard-working Illinoians are feeling today...when this budget passes, Illinoisans will know that we hear them.”