Quinn signs earned-income tax credit law

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Updated: January 10, 2012 3:56PM

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

Gov. Pat Quinn on Tuesday signed the legislation, which 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 — which takes effect June 1 — increases the personal exemption by $50, to $2,050. That’s the amount of money exempt from income taxes for each person.

Under the new law, that amount will increase each year at the rate of inflation.

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.