103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4406

 

Introduced 1/16/2024, by Rep. Dave Severin

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/241 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

 

HB4406LRB103 36752 HLH 66862 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. Foster care credit.
8    (a) For taxable years beginning on or after January 1,
92024, 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, by the taxpayer as a
13foster care parent for a qualifying dependent child. The tax
14credit under this Section may be claimed by the taxpayer for
15the taxable year in which the taxpayer becomes the legal
16guardian of the qualifying dependent child. The taxpayer must
17be under contract with the Department of Children and Family
18Services and providing care to the qualifying dependent child
19for at least 6 months during the taxable year to receive the
20full credit. If the taxpayer is under contract with the
21Department of Children and Family Services and providing care
22to the qualifying dependent child for less than 6 months
23during the taxable year, then the taxpayer is entitled to a

 

 

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1credit in an amount equal to the product of (i) the lesser of
2the foster care expenses paid or incurred by the taxpayer or
3$1,000, multiplied by (ii) a fraction the numerator of which
4is the number of days during the taxable year during which the
5taxpayer is under contract with the Department of Children and
6Family Services and providing care to the qualifying dependent
7child and the denominator of which is 365.
8    (b) In no event shall a credit under this Section reduce a
9taxpayer's liability to less than zero. If the amount of the
10credit exceeds the tax liability for the year, the excess may
11be carried forward and applied to the tax liability for the 5
12taxable years following the excess credit year. The tax credit
13shall be applied to the earliest year for which there is a tax
14liability. If there are credits for more than one year that are
15available to offset liability, the earlier credit shall be
16applied first.
17    (c) The Department of Children and Family Services, in
18collaboration with the Department of Revenue, shall adopt
19rules to implement and administer this Section.
20    (d) As used in 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
24    the taxpayer seeking a credit under this Section.
25    (e) This Section is exempt from the provisions of Section
26250.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.