HB5314 98TH GENERAL ASSEMBLY

LRB098 17284 HLH 52378 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5314

Introduced , by Rep. Barbara Wheeler

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Creates a tax credit for each individual taxpayer who adopts a child during the taxable year in an amount equal to certain nonrecurring adoption expenses incurred by the taxpayer in connection with that adoption. Provides that the credit may not exceed $4,000 per child. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Adoption expenses credit.

(a) For each taxable year beginning on or after January 1, 2014, each individual taxpayer who adopts a child during the taxable year is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to the nonrecurring adoption expenses incurred by the taxpayer in connection with that adoption. The credit under this Section may not exceed $4,000 per child.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) As used in this Section, the following terms have the following meanings.

"Child" means a person who is under the age of 18 years and who is adopted in this State or placed for adoption from this State.

"Nonrecurring adoption expenses" means reasonable and necessary adoption fees, court costs, attorney fees, and expenses which are directly related to the legal process of adoption of a child, which are incurred to complete the adoption process or meet federal requirements and are not reimbursed, including costs related to the adoption study, health and psychological examinations, supervision of the placement before the adoption, and transportation and reasonable costs of lodging and food for the child or adoptive parents.

(d) This Section is exempt from the provisions of Section 250.

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