BELLEVILLE, Ill. – The start of July marks the effective date of the Illinois Family Relief Plan, an inflation relief package backed by state Rep. Jay Hoffman, D-Swansea, designed to help families with gas, groceries, property taxes and direct relief.
“On the tails of the pandemic, families are facing increased financial pressure brought on by inflation,” Hoffman said. “When putting together this year’s budget, we knew we had to put working families first and do what we can to help residents address higher costs. Starting today, we’re seeing relief strategies put into action.”
Under the Illinois Family Relief Plan, the state is enacting a number of tax holidays, including:
- Suspending the state’s 1% sales tax on groceries, expected to save consumers $400 million through June 30, 2023;
- Delaying implementation of the state’s automatic motor fuel tax, expected to save drivers $70 million the rest of this year; and
- Reducing the sales tax for qualified school-related and clothing items for a 10-day window from Aug. 5 through Aug. 14 from 6.25% to 1.25%, saving parents $50 million.
Additionally, the state is providing property tax rebates for eligible homeowners up to a maximum of $300 in an amount equal to the property tax credit they qualified for on their 2021 state tax return.
Illinois is also permanently expanding the state’s earned income credit from 18% to 20% of the federal credit, while also increasing the number of households that will be covered. The change is expected to have a $100 million impact on working families statewide.
Beginning in September, income and property tax rebates will begin to automatically roll out to qualified individuals based on 2021 tax returns. Residents who made less than $200,000 in 2021 will receive a $50 income tax rebate, while those who claim a dependent will receive $100 for each individual claimed, up to three dependents. Joint filing couples will face a $400,000 threshold.
“This action is only possible due to responsible stewardship of our state finances, which better positioned us to deliver more than $1.8 billion in relief,” Hoffman said. “This will have a positive impact on those who need help the most, and it underscores the need to continue to take strong action with our finances so that we may continue to address challenges as they arise.”