Bill Text: IL HB4406 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the foster care expenses, not to exceed $1,000 in any taxable year, paid or incurred by the taxpayer with respect to a qualified dependent child. Provides that the credit may be prorated. Effective immediately.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4406 Detail]
Download: Illinois-2023-HB4406-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. Foster care credit. | |||||||||||||||||||
8 | (a) For taxable years beginning on or after January 1, | |||||||||||||||||||
9 | 2024, there shall be allowed a credit against the tax imposed | |||||||||||||||||||
10 | by subsections (a) and (b) of Section 201 of this Act in an | |||||||||||||||||||
11 | amount equal to the foster care expenses paid or incurred, not | |||||||||||||||||||
12 | to exceed $1,000 in any taxable year, by the taxpayer as a | |||||||||||||||||||
13 | foster care parent for a qualifying dependent child. The tax | |||||||||||||||||||
14 | credit under this Section may be claimed by the taxpayer for | |||||||||||||||||||
15 | the taxable year in which the taxpayer becomes the legal | |||||||||||||||||||
16 | guardian of the qualifying dependent child. The taxpayer must | |||||||||||||||||||
17 | be under contract with the Department of Children and Family | |||||||||||||||||||
18 | Services and providing care to the qualifying dependent child | |||||||||||||||||||
19 | for at least 6 months during the taxable year to receive the | |||||||||||||||||||
20 | full credit. If the taxpayer is under contract with the | |||||||||||||||||||
21 | Department of Children and Family Services and providing care | |||||||||||||||||||
22 | to the qualifying dependent child for less than 6 months | |||||||||||||||||||
23 | during the taxable year, then the taxpayer is entitled to a |
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1 | credit in an amount equal to the product of (i) the lesser of | ||||||
2 | the foster care expenses paid or incurred by the taxpayer or | ||||||
3 | $1,000, multiplied by (ii) a fraction the numerator of which | ||||||
4 | is the number of days during the taxable year during which the | ||||||
5 | taxpayer is under contract with the Department of Children and | ||||||
6 | Family Services and providing care to the qualifying dependent | ||||||
7 | child and the denominator of which is 365. | ||||||
8 | (b) In no event shall a credit under this Section reduce a | ||||||
9 | taxpayer's liability to less than zero. If the amount of the | ||||||
10 | credit exceeds the tax liability for the year, the excess may | ||||||
11 | be carried forward and applied to the tax liability for the 5 | ||||||
12 | taxable years following the excess credit year. The tax credit | ||||||
13 | shall be applied to the earliest year for which there is a tax | ||||||
14 | liability. If there are credits for more than one year that are | ||||||
15 | available to offset liability, the earlier credit shall be | ||||||
16 | applied first. | ||||||
17 | (c) The Department of Children and Family Services, in | ||||||
18 | collaboration with the Department of Revenue, shall adopt | ||||||
19 | rules to implement and administer this Section. | ||||||
20 | (d) As used in this Section: | ||||||
21 | "Qualifying dependent child" means a person who is an | ||||||
22 | Illinois resident in the custody of the Department of | ||||||
23 | Children and Family Services who is the foster child of | ||||||
24 | the taxpayer seeking a credit under this Section. | ||||||
25 | (e) This Section is exempt from the provisions of Section | ||||||
26 | 250.
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