Rep. Dave Severin

Filed: 3/9/2023

 

 


 

 


 
10300HB3685ham001LRB103 28570 HLH 58909 a

1
AMENDMENT TO HOUSE BILL 3685

2    AMENDMENT NO. ______. Amend House Bill 3685 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5adding Section 234 as follows:
 
6    (35 ILCS 5/234 new)
7    Sec. 234. Foster care credit.
8    (a) For taxable years beginning on or after January 1,
92023, there shall be allowed a credit against the tax imposed
10by subsections (a) and (b) of Section 201 of this Act in an
11amount equal to the foster care expenses paid or incurred, not
12to exceed $1,000 in any taxable year, for each qualifying
13dependent child legally cared for by the foster care parent in
14Illinois. The tax credit under this Section may be claimed for
15the taxable year in which the foster care parent becomes the
16legal guardian of a foster child. The taxpayer must be under

 

 

10300HB3685ham001- 2 -LRB103 28570 HLH 58909 a

1contract with the Department of Children and Family Services
2and providing care to the qualifying dependent child for at
3least 6 months during the taxable year to receive the full
4credit. If the taxpayer is under contract with the Department
5of Children and Family Services and providing care to the
6qualifying dependent child for less than 6 months during the
7taxable year, then the taxpayer is entitled to a credit in an
8amount equal to: the lesser of (i) the foster care expenses
9paid or incurred by the taxpayer or (ii) $1,000; multiplied by
10a fraction the numerator of which is the number of days during
11the taxable year during which the taxpayer is under contract
12with the Department of Children and Family Services and
13providing care to the qualifying dependent child and the
14denominator of which is 365.
15    (b) In no event shall a credit under this Section reduce a
16taxpayer's liability to less than zero. If the taxpayer has a
17federal adjusted gross income for the taxable year that does
18not exceed $50,000, then the excess credit amount shall be
19refunded to the taxpayer. The amount of the refund shall not be
20included in the taxpayer's income or resources for the
21purposes of determining the taxpayer's eligibility or benefit
22level for any means-tested benefit program administered by a
23governmental entity unless required by federal law. If the
24taxpayer has a federal adjusted gross income for the taxable
25year that is $50,000 or more, then the excess credit amount
26shall be carried forward and applied to the tax liability for

 

 

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1the 5 taxable years following the excess credit year. The tax
2credit shall be applied to the earliest year for which there is
3a tax liability. If there are credits for more than one year
4that are available to offset liability, the earlier credit
5shall be applied first.
6    (c) The Department of Children and Family Services, in
7collaboration with the Department of Revenue, shall adopt any
8necessary rules to implement this Section.
9    (d) As used in this Section, "qualifying dependent child"
10means a person who is an Illinois resident in the custody of
11the Department of Children and Family Services who is the
12foster child of the taxpayer seeking a credit under this
13Section.
14    (e) This Section is exempt from the provisions of Section
15250.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".