103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4403

 

Introduced 1/16/2024, by Rep. Anna Moeller

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/241 new

    Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 100% of the State and federal income, estate, and gift taxes incurred by the taxpayer during the taxable year as a result of a liquidation of assets by the taxpayer in order to allow the taxpayer to qualify for Medicaid long-term care assistance. Effective immediately.


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A BILL FOR

 

HB4403LRB103 35453 HLH 65522 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5adding Section 241 as follows:
 
6    (35 ILCS 5/241 new)
7    Sec. 241. Credit for Medicaid long-term care.
8    (a) For taxable years ending on or after December 31,
92024, each individual taxpayer is entitled to a nonrefundable
10credit against the taxes imposed by subsections (a) and (b) of
11Section 201 in an amount equal to 100% of the State and federal
12income, estate, and gift taxes incurred by the taxpayer during
13the taxable year as a result of a liquidation of assets by the
14taxpayer in order to allow the taxpayer to qualify for
15Medicaid long-term care assistance. This credit shall apply to
16a single individual or a married couple as long as the
17countable assets are reduced to the levels specified in the
18Medicaid asset limits. This credit shall apply only for the
19tax year in which (i) assets are liquidated and spent down to
20the levels specified in the Medicaid asset limits and (ii) the
21taxpayer enters or remains in a nursing home or a supportive
22living facility and meets the qualifications for Medicaid
23assistance under the Medicaid asset limits. This credit does

 

 

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1not apply if the taxpayer's spouse is entitled to the
2Community Spouse Maintenance Needs Allowance.
3    (b) In no event shall a credit under this Section reduce
4the taxpayer's liability to less than zero. If the amount of
5the credit exceeds the tax liability for the year, the excess
6may be carried forward and applied to the tax liability of the
75 taxable years following the excess credit year. The tax
8credit shall be applied to the earliest year for which there is
9a tax liability. If there are credits for more than one year
10that are available to offset a liability, the earlier credit
11shall be applied first.
12    (c) This Section is exempt from the provisions of Section
13250.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.