Springfield, IL - Legislation sponsored by State Senator Michael Frerichs (D-Gifford) increasing the state's Earned Income Tax Credit (EITC) limit by 2.5% was overwhelmingly passed on the Senate floor today.

This change to the Illinois Income Tax Act calls for the earned income tax credit to be raised from 5% of the federal credit to 7.5% for 2007, and to 10% of the federal tax credit for 2008 and thereafter.

"This bill provides the opportunity for qualifying citizens in Illinois to receive a tax credit comparable to the citizens of the other states who offer this credit," said Senator Frerichs. Of the 21 states, which offer the EITC, Illinois ranks the lowest with a maximum credit of $220. For example, this is substantially less than Minnesota's leading $2,024.

The passage of Senate Bill 12 is especially advantageous to working and low income families who find relief from the reduction of their tax burdens. In the 2005 tax year alone, of the 761'000 Illinois citizens who applied for this credit, 583,000 received a refund through the IL EITC.

The proposal now moves to the House of Representatives for further consideration.