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HB5080 • 2026
INC TAX-CHILD CARE
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
INC TAX-CHILD CARE
Rule 19(a) / Re-referred to Rules Committee
To Income Tax Subcommittee
Assigned to Revenue & Finance Committee
Added Chief Co-Sponsor Rep. Elizabeth "Lisa" Hernandez
First Reading
Referred to Rules Committee
Filed with the Clerk by Rep. Mary Beth Canty
INC TAX-CHILD CARE
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Full Text of HB5080 Home Legislation Full Text HB5080 - 104th General Assembly Bill Status Full Text Votes Witness Slips Select Menu Bill Status Full Text Votes Witness Slips Printer Friendly Version Introduced Printer Friendly Version Introduced Open PDF 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB5080 Introduced 2/10/2026, by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED: 35 ILCS 5/210.5 35 ILCS 5/210.10 new Amends the Illinois Income Tax Act. Provides that the tax credit for employee child care shall be (i) 30% of the start-up costs expended by the corporate taxpayer to provide a child care facility for the children of its employees and (ii) 10% (currently, 5%) of the annual amount paid by the corporate taxpayer in providing the child care facility for the children of its employees. Creates an income tax credit for corporate taxpayers that are qualified small businesses in an amount equal to 10% of the federal tax credit claimed by the taxpayer for the taxable year for qualified child care expenditures. Effective immediately. LRB104 18890 HLH 32335 b A BILL FOR HB5080 LRB104 18890 HLH 32335 b 1 AN ACT concerning revenue. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Income Tax Act is amended by 5 changing Section 210.5 and by adding Section 210.10 as 6 follows: 7 (35 ILCS 5/210.5) 8 Sec. 210.5. Tax credit for employee child care. 9 (a) Each corporate taxpayer is entitled to a credit 10 against the tax imposed by subsections (a) and (b) of Section 11 201 in an amount equal to (i) for taxable years ending on or 12 after December 31, 2000 and on or before December 31, 2004 , and 13 for taxable years ending on or after December 31, 2007, and for 14 taxable years ending on or after December 31, 2026, 30% of the 15 start-up costs expended by the corporate taxpayer to provide a 16 child care facility for the children of its employees , and 17 (ii) for taxable years ending on or after December 31, 2000 and 18 on or before December 31, 2025 , 5% of the annual amount paid by 19 the corporate taxpayer in providing the child care facility 20 for the children of its employees , and (iii) for taxable years 21 ending after December 31, 2025, 10% of the annual amount paid 22 by the corporate taxpayer in providing the child care facility 23 for the children of its employees . The provisions of Section HB5080 - 2 - LRB104 18890 HLH 32335 b 1 250 do not apply to the credits allowed under this Section. If 2 the 5% credit authorized under item (ii) of this subsection is 3 claimed, the 5% credit authorized under Section 210 cannot 4 also be claimed. 5 To receive the tax credit under this Section a corporate 6 taxpayer may either independently provide and operate a child 7 care facility for the children of its employees or it may join 8 in a partnership with one or more other corporations to 9 jointly provide and operate a child care facility for the 10 children of employees of the corporations in the partnership. 11 (b) The tax credit may not reduce the taxpayer's liability 12 to less than zero. If the amount of the tax credit exceeds the 13 tax liability for the year, the excess may be carried forward 14 and applied to the tax liability of the 5 taxable years 15 following the excess credit year. The credit must be applied 16 to the earliest year for which there is a tax liability. If 17 there are credits from more than one tax year that are 18 available to offset a liability, then the earlier credit must 19 be applied first. 20 (c) As used in this Section, "start-up costs" means 21 planning, site-preparation, construction, renovation, or 22 acquisition of a child care facility. As used in this Section, 23 "child care facility" is limited to a child care facility 24 located in Illinois. 25 (d) A corporate taxpayer claiming the credit provided by 26 this Section shall maintain and record such information as the HB5080 - 3 - LRB104 18890 HLH 32335 b 1 Department may require by rule regarding the child care 2 facility for which the credit is claimed. 3 (Source: P.A. 95-648, eff. 10-11-07.) 4 (35 ILCS 5/210.10 new) 5 Sec. 210.10. Federal enhanced tax credit for 6 employer-provided child care. 7 (a) For taxable years beginning on or after January 1, 8 2026, each corporate taxpayer that is a qualified small 9 business is entitled to a credit against the tax imposed by 10 subsections (a) and (b) of Section 201 in an amount equal to 11 10% of the federal tax credit claimed by the corporate 12 taxpayer for the taxable year for qualified child care 13 expenditures under Section 45F of the Internal Revenue Code. 14 (b) A taxpayer may not claim both the credit under Section 15 210.5 of this Act and the credit under this Section for the 16 same expenditure. 17 (c) In no event shall a credit under this Section reduce 18 the taxpayer's liability to less than zero. If the amount of 19 the tax credit exceeds the tax liability for the year, the 20 excess may be carried forward and applied to the tax liability 21 of the 5 taxable years following the excess credit year. The 22 credit must be applied to the earliest year for which there is 23 a tax liability. If there are credits from more than one tax 24 year that are available to offset a liability, then the 25 earlier credit must be applied first. HB5080 - 4 - LRB104 18890 HLH 32335 b 1 (d) The Department shall adopt rules necessary to 2 implement and administer this Section. 3 (e) This Section is exempt from the provisions of Section 4 250 of this Act. 5 (f) As used in this Section: 6 "Qualified child care expenditure" means an expenditure 7 that is paid or incurred: 8 (1) to acquire, construct, rehabilitate, or expand 9 property: 10 (A) that is to be used by the Illinois taxpayer as 11 part of a qualified child care facility in Illinois; 12 (B) with respect to which a deduction for 13 depreciation (or amortization in lieu of depreciation) 14 is allowable; and 15 (C) that does not constitute part of the principal 16 residence of the taxpayer or any employee of the 17 taxpayer; 18 (2) for the operating costs of a qualified child care 19 facility of the taxpayer, including costs related to the 20 training of employees, costs for scholarship programs, and 21 the costs of providing increased compensation to employees 22 with higher levels of child care training; or 23 (3) under a contract with a qualified child care 24 facility to provide child care services to employees of 25 the taxpayer, or under a contract with an intermediate 26 entity that contracts with one or more qualified child HB5080 - 5 - LRB104 18890 HLH 32335 b 1 care facilities to provide those child care services. 2 "Qualified child care expenditures" does not include 3 expenses in excess of the fair market value of the care. 4 "Qualified child care facility" has the same meaning given 5 to that term in Section 45F of the federal Internal Revenue 6 Code. 7 "Qualified small business" has the same meaning given to 8 that term in Section 45F of the Internal Revenue Code. 9 Section 99. Effective date. This Act takes effect upon 10 becoming law. Footer Disclaimer This site is maintained for the Illinois General Assembly by the Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706. Contact ILGA Webmaster ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies. Read About Cookies ILGA.GOV 2026 ILGA.gov | All Rights Reserved | ADA | Disclaimers | Learn This site is maintained for the Illinois General Assembly by the Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706. Contact ILGA Webmaster ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies. Read About Cookies ILGA.GOV 2026 ILGA.gov | All Rights Reserved | ADA | Disclaimers | Learn