Bill Text: IL HB5314 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates a tax credit for each individual taxpayer who adopts a child during the taxable year in an amount equal to certain nonrecurring adoption expenses incurred by the taxpayer in connection with that adoption. Provides that the credit may not exceed $4,000 per child. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

Sponsorship: Moderate Partisan Bill (Republican 5-1)

Status: (Failed) 2014-12-03 - Session Sine Die [HB5314 Detail]

Download: Illinois-2013-HB5314-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB5314 Introduced , by Rep. Barbara Wheeler SYNOPSIS AS INTRODUCED:
35 ILCS 5/224 new
Amends the Illinois Income Tax Act. Creates a tax credit for each individual taxpayer who adopts a child during the taxable year in an amount equal to certain nonrecurring adoption expenses incurred by the taxpayer in connection with that adoption. Provides that the credit may not exceed $4,000 per child. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.
LRB098 17284 HLH 52378 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB5314 LRB098 17284 HLH 52378 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by adding
Section 224 as follows:
(35 ILCS 5/224 new)
Sec. 224. Adoption expenses credit.
(a) For each taxable year beginning on or after January 1,
2014, each individual taxpayer who adopts a child during the
taxable year is entitled to a credit against the tax imposed by
subsections (a) and (b) of Section 201 of this Act in an amount
equal to the nonrecurring adoption expenses incurred by the
taxpayer in connection with that adoption. The credit under
this Section may not exceed $4,000 per child.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.

HB5314 - 2 - LRB098 17284 HLH 52378 b
(c) As used in this Section, the following terms have the
following meanings.
"Child" means a person who is under the age of 18 years and
who is adopted in this State or placed for adoption from this
State.
"Nonrecurring adoption expenses" means reasonable and
necessary adoption fees, court costs, attorney fees, and
expenses which are directly related to the legal process of
adoption of a child, which are incurred to complete the
adoption process or meet federal requirements and are not
reimbursed, including costs related to the adoption study,
health and psychological examinations, supervision of the
placement before the adoption, and transportation and
reasonable costs of lodging and food for the child or adoptive
parents.
(d) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.