SPRINGFIELD – State Senator Mattie Hunter (D-Chicago) is leading an initiative that would extend the student-assistance contribution tax credit, which passed the Senate Revenue Committee Wednesday.

“I am proud to sponsor this initiative to help parents get a head start on saving for their children’s college expenses,” Hunter said. “Children who have a savings account are more likely to go to college, so it is important to encourage planning early.”

Senate Bill 340 extends the sunset of the student-assistance contribution tax credit from Dec. 30, 2021 to Dec. 31, 2031. Additionally, this bill provides that for taxable years on or after Dec. 31, 2021, the maximum credit should be $1,000 – rather than the current amount of $500.

Under current law, taxpayers may claim a credit for contributions made to either a specified individual College Savings Pool Account or the Illinois Prepaid Tuition Trust Fund in an amount matching a contribution of an employee of the taxpayer.

The credit is for 25% of the value of the contribution and is capped at $500.

“As college prices continue to rise, it is crucial that some incentives or financial relief are provided when possible,” Hunter said. “I hope this legislation will encourage those who are hesitant about college affordability that it can be done.”

This legislation now awaits to be heard on the Senate floor and can be tracked here.