Bill Status of HB 2974   101st General Assembly

Short Description:  INCOME TAX-CAREGIVER CREDIT

House Sponsors
Rep. Anna Moeller-Joyce Mason, Marcus C. Evans, Jr., Katie Stuart, Monica Bristow, Robyn Gabel and Terra Costa Howard

Last Action  View All Actions

DateChamber Action
  1/13/2021HouseSession Sine Die

Statutes Amended In Order of Appearance
35 ILCS 5/229 new

Synopsis As Introduced
Amends the Illinois Income Tax Act. Provides that a taxpayer who is a family caregiver is eligible to receive a nonrefundable income tax credit in an amount equal to 100% of the eligible expenditures incurred by the taxpayer during the taxable year related to the care of an eligible family member, but not exceed $1,500 for the same eligible family member. Provides that the term "eligible family member" means a person who: (1) is at least 18 years of age during a taxable year; (2) requires assistance with at least one activity of daily living; (3) is a resident of the State; and (4) is related to the family caregiver. Effective immediately.

 Correctional Note (Dept of Corrections)
 There is no fiscal or population impact on the department.

 Pension Note (Government Forecasting & Accountability)
 HB 2974 amends the Illinois Income Tax Act in a way that does impact any pension system.

 Judicial Note (Admin Office of the Illinois Courts)
 This legislation would neither increase nor decrease the number of judges needed in the State of Illinois.

 State Debt Impact Note (Government Forecasting & Accountability)
 This bill would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.

 Land Conveyance Appraisal Note (Dept. of Transportation)
 No land conveyances are included in this bill; therefore, there are no appraisals to be filed.

 Housing Affordability Impact Note (Housing Development Authority)
 This bill will have no effect on the cost of constructing, purchasing, owning, or selling a single-family residence.

 State Mandates Fiscal Note (Dept. of Commerce & Economic Opportunity)
 This bill does not create a State mandate

 Home Rule Note (Dept. of Commerce & Economic Opportunity)
 This bill does not pre-empt home rule authority.

 Balanced Budget Note (Office of Management and Budget)
 Please be advised that the Balanced Budget Note Act does not apply to this bill, as it is not a supplemental appropriation that increases or decreases appropriations. Under the Act, a balanced budget note must be prepared only for bills that change a general funds appropriation for the fiscal year in which the new bill is enacted.

 Fiscal Note (Dept. of Revenue)
 The fiscal impact of HB 2974 would be a reduction in income tax revenue by an estimated $870 million to $1.74 Billion per year depending on the assumed claim rate. This estimate is based on data from the AARP "Caregiving in the US" 2015 report. From there we estimate that there are 1.36 Million caregivers caring for an adult in Illinois. Following the bill's language, we reduce that number to account only for those caring for an eligible family member. Based on the same data source we arrive to 1.16 Million caregivers that may qualify for this tax credit. When we apply the credit amount of $1,500 per qualified taxpayers to this latest figure, the result is $1.74 Billion in cost to the state - the upper limit of our estimate. The lower limit of the estimate accounts for the fact that in approximately 33% of the cases there is not a sole caregiver (based on the same data source). It also assumes that only 3 out of every 4 qualified taxpayers will claim the credit. For these two reasons in the lower limit we reduce the cost estimate to $870 Million per year, which is 50% of the upper limit. The definition of eligible expenditures is very broad, including costs associated with improvements or alterations to the family residence to permit an eligible family member to remain mobile, safe, and independent; the cost to purchase or lease equipment necessary to assist an eligible family member in carrying on one or more activities of daily living; and the cost of other goods and services that assist in providing care, including personal care attendants, transportation, and legal and financial services. For this reason, we believe that it is reasonable to expect that taxpayers may easily reach to the full credit amount of $1,500 that the bill establishes. For comparison purposes, consider that there are almost 1.6 million returns clarifying retirement income in the state (according to the latest available return data, FY16). This group of taxpayers would likely be the main beneficiary of this bill proposal. This fact reinforces our findings. Furthermore, data from the Centers for Medicare and Medicaid off ice indicates that the home health care cost in Illinois is around $4.2 Billion annually. This additional fact further strengthens our estimated cost range.

Actions 
DateChamber Action
  2/14/2019HouseFiled with the Clerk by Rep. Anna Moeller
  2/14/2019HouseFirst Reading
  2/14/2019HouseReferred to Rules Committee
  2/20/2019HouseAdded Co-Sponsor Rep. Joyce Mason
  2/20/2019HouseRemoved Co-Sponsor Rep. Joyce Mason
  2/20/2019HouseAdded Chief Co-Sponsor Rep. Joyce Mason
  2/20/2019HouseAdded Co-Sponsor Rep. Marcus C. Evans, Jr.
  2/21/2019HouseAdded Co-Sponsor Rep. Katie Stuart
  2/22/2019HouseAdded Co-Sponsor Rep. Monica Bristow
  2/26/2019HouseAssigned to Revenue & Finance Committee
  3/1/2019HouseCorrectional Note Filed
  3/4/2019HousePension Note Filed
  3/4/2019HouseJudicial Note Filed
  3/4/2019HouseState Debt Impact Note Filed
  3/5/2019HouseLand Conveyance Appraisal Note Filed
  3/5/2019HouseHousing Affordability Impact Note Filed
  3/6/2019HouseState Mandates Fiscal Note Filed
  3/6/2019HouseHome Rule Note Filed
  3/6/2019HouseTo Income Tax Subcommittee
  3/7/2019HouseBalanced Budget Note Filed
  3/18/2019HouseAdded Co-Sponsor Rep. Robyn Gabel
  3/21/2019HouseFiscal Note Filed
  3/25/2019HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Anna Moeller
  3/25/2019HouseHouse Committee Amendment No. 1 Referred to Rules Committee
  3/26/2019HouseHouse Committee Amendment No. 1 Rules Refers to Revenue & Finance Committee
  3/29/2019HouseRule 19(a) / Re-referred to Rules Committee
  3/29/2019HouseHouse Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee
  5/30/2019HouseAdded Co-Sponsor Rep. Terra Costa Howard
  1/13/2021HouseSession Sine Die

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