Bill Text: IL HB3685 | 2023-2024 | 103rd General Assembly | Introduced

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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: Moderate Partisan Bill (Republican 6-1)

Status: (Introduced) 2024-04-05 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB3685 Detail]

Download: Illinois-2023-HB3685-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3685 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED:
35 ILCS 5/234 new
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.
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A BILL FOR
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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 234 as follows:
(35 ILCS 5/234 new)
Sec. 234. Foster care credit.
(a) For taxable years beginning on or after January 1,
2023, there shall be allowed a credit against the tax imposed
by subsections (a) and (b) of Section 201 of this Act in an
amount equal to the foster care expenses paid or incurred, not
to exceed $1,000 in any taxable year, for each qualifying
dependent child legally cared for by the foster care parent in
Illinois. The tax credit under this Section may be claimed for
the taxable year in which the foster care parent becomes the
legal guardian of a foster child. The taxpayer must be under
contract with the Department of Children and Family Services
and providing care to the qualifying dependent child for at
least 6 months during the taxable year to receive the full
credit. If the taxpayer is under contract with the Department
of Children and Family Services and providing care to the
qualifying dependent child for less than 6 months during the
taxable year, then the taxpayer is entitled to a credit in an

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amount equal to: the lesser of (i) the foster care expenses
paid or incurred by the taxpayer or (ii) $1,000; multiplied by
a fraction the numerator of which is the number of days during
the taxable year during which the taxpayer is under contract
with the Department of Children and Family Services and
providing care to the qualifying dependent child and the
denominator of which is 365.
(b) In no event shall a credit under this Section reduce a
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 for 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 liability, the earlier credit shall be
applied first.
(c) The Department of Children and Family Services, in
collaboration with the Department of Revenue, shall adopt any
necessary rules to implement this Section.
(d) As used in this Section, "qualifying dependent child"
means a person who is an Illinois resident in the custody of
the Department of Children and Family Services who is the
foster child of the taxpayer seeking a credit under this
Section.
(e) This Section is exempt from the provisions of Section
250.

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Section 99. Effective date. This Act takes effect upon
becoming law.