Bill Text: IL HB5119 | 2019-2020 | 101st 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: Moderate Partisan Bill (Republican 10-2)
Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5119 Detail]
Download: Illinois-2019-HB5119-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,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by adding | ||||||||||||||||||||||||
5 | Section 232 as follows:
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6 | (35 ILCS 5/232 new) | ||||||||||||||||||||||||
7 | Sec. 232. Foster care credit. | ||||||||||||||||||||||||
8 | (a) For taxable years beginning on or after January 1, | ||||||||||||||||||||||||
9 | 2020, 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, for each qualifying | ||||||||||||||||||||||||
13 | dependent child legally cared for by the foster care parent in | ||||||||||||||||||||||||
14 | Illinois. The tax credit under this Section may be claimed for | ||||||||||||||||||||||||
15 | the taxable year in which the foster care parent becomes the | ||||||||||||||||||||||||
16 | legal guardian of a foster child. The taxpayer must be under | ||||||||||||||||||||||||
17 | contract with the Department of Children and Family Services | ||||||||||||||||||||||||
18 | and providing care to the qualifying dependent child for at | ||||||||||||||||||||||||
19 | least 6 months during the taxable year to receive the full | ||||||||||||||||||||||||
20 | credit. If the taxpayer is under contract with the Department | ||||||||||||||||||||||||
21 | of Children and Family Services and providing care to the | ||||||||||||||||||||||||
22 | qualifying dependent child for less than 6 months during the | ||||||||||||||||||||||||
23 | taxable year, then the taxpayer is entitled to a credit in an |
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1 | amount equal to: the lesser of (i) the foster care expenses | ||||||
2 | paid or incurred by the taxpayer or (ii) $1,000; multiplied by | ||||||
3 | a fraction the numerator of which is the number of days during | ||||||
4 | the taxable year during which the taxpayer is under contract | ||||||
5 | with the Department of Children and Family Services and | ||||||
6 | providing care to the qualifying dependent child and the | ||||||
7 | 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 any | ||||||
19 | necessary rules to implement this Section. | ||||||
20 | (d) For the purposes of 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 the | ||||||
24 | taxpayer seeking a credit under this Section. | ||||||
25 | (e) This Section is exempt from the provisions of Section | ||||||
26 | 250.
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.
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