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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB4378
Introduced 1/4/2006, by Rep. Carolyn H. Krause SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Allows an income tax credit in an amount
equal to 15% of the premium costs paid for a qualified long term care insurance
contract covering the individual taxpayer or the taxpayer's spouse, parent, or
dependent. Provides that the credit may not exceed $200 or the taxpayer's
liability, whichever is less. Prohibits the carry forward of an excess tax
credit to a succeeding year's tax liability. Exempts the credit from the sunset
provisions. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB4378 |
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LRB094 15700 BDD 50909 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois, |
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by adding |
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| Section 216 as
follows:
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| (35 ILCS 5/216 new)
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| Sec. 216. Tax credit for long term care insurance premiums. |
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| For
taxable years ending on or after December 31, 2006, an |
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| individual taxpayer is
entitled to a credit
against
the tax |
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| imposed by subsections (a) and (b) of Section 201 in an amount |
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| equal to
15% of the premium costs paid by the taxpayer during |
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| the taxable year for a
qualified long term care insurance |
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| contract, as defined by Section 7702B of the
Internal Revenue |
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| Code, that offers coverage to either the individual or the
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| individual's spouse, parent, or dependent, as defined in |
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| Section 152 of the
Internal Revenue Code. The credit allowed |
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| under this Section may not exceed
$200 for each qualified long |
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| term care policy or the amount of the taxpayer's
liability |
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| under this Act,
whichever is less. A taxpayer is not entitled |
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| to the credit with respect to
amounts expended for the same |
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| qualified long term care insurance contract that
are claimed by |
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| another taxpayer. If the amount of the credit exceeds the
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| taxpayer's liability under this Act for the year, then the |
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| excess may not be
carried forward to apply to the taxpayer's |
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| liability for the succeeding year.
The provisions of Section |
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| 250 do not apply to the credit under this Section.
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law. |