Illinois Tax Breaks
12:09 pm
Tue January 10, 2012

Quinn signs earned-income tax credit aimed at helping poor Ill. families

Legislation that's aimed at helping poor Illinois families keep more of what they earn is now law.

Gov. Pat Quinn on Tuesday signed the legislation that expands the state's earned-income tax credit. It's now 5 percent of the federal credit, would climb to 7.5 percent next year and 10 percent the year after.

The new law would increase the personal exemption by $50 to $2,050. That's the amount of money exempt from income taxes for each person. The law would also increase each year by the rate of inflation. The law goes into effect June 1.

Quinn signed companion legislation last month granting hundreds of millions of dollars in tax breaks and incentives aimed at keeping two big employers - Sears Holdings Corp. and CME Group Inc. - in Illinois.