Bill Text: IL HB4403 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 100% of the State and federal income, estate, and gift taxes incurred by the taxpayer during the taxable year as a result of a liquidation of assets by the taxpayer in order to allow the taxpayer to qualify for Medicaid long-term care assistance. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4403 Detail]
Download: Illinois-2023-HB4403-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | |||||||||||||||||||
5 | adding Section 241 as follows:
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6 | (35 ILCS 5/241 new) | |||||||||||||||||||
7 | Sec. 241. Credit for Medicaid long-term care. | |||||||||||||||||||
8 | (a) For taxable years ending on or after December 31, | |||||||||||||||||||
9 | 2024, each individual taxpayer is entitled to a nonrefundable | |||||||||||||||||||
10 | credit against the taxes imposed by subsections (a) and (b) of | |||||||||||||||||||
11 | Section 201 in an amount equal to 100% of the State and federal | |||||||||||||||||||
12 | income, estate, and gift taxes incurred by the taxpayer during | |||||||||||||||||||
13 | the taxable year as a result of a liquidation of assets by the | |||||||||||||||||||
14 | taxpayer in order to allow the taxpayer to qualify for | |||||||||||||||||||
15 | Medicaid long-term care assistance. This credit shall apply to | |||||||||||||||||||
16 | a single individual or a married couple as long as the | |||||||||||||||||||
17 | countable assets are reduced to the levels specified in the | |||||||||||||||||||
18 | Medicaid asset limits. This credit shall apply only for the | |||||||||||||||||||
19 | tax year in which (i) assets are liquidated and spent down to | |||||||||||||||||||
20 | the levels specified in the Medicaid asset limits and (ii) the | |||||||||||||||||||
21 | taxpayer enters or remains in a nursing home or a supportive | |||||||||||||||||||
22 | living facility and meets the qualifications for Medicaid | |||||||||||||||||||
23 | assistance under the Medicaid asset limits. This credit does |
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1 | not apply if the taxpayer's spouse is entitled to the | ||||||
2 | Community Spouse Maintenance Needs Allowance. | ||||||
3 | (b) In no event shall a credit under this Section reduce | ||||||
4 | the taxpayer's liability to less than zero. If the amount of | ||||||
5 | the credit exceeds the tax liability for the year, the excess | ||||||
6 | may be carried forward and applied to the tax liability of the | ||||||
7 | 5 taxable years following the excess credit year. The tax | ||||||
8 | credit shall be applied to the earliest year for which there is | ||||||
9 | a tax liability. If there are credits for more than one year | ||||||
10 | that are available to offset a liability, the earlier credit | ||||||
11 | shall be applied first. | ||||||
12 | (c) This Section is exempt from the provisions of Section | ||||||
13 | 250.
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