HB4676 103RD GENERAL ASSEMBLY

LRB103 35190 HLH 65164 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4676

Introduced 2/6/2024, by Rep. Anna Moeller

SYNOPSIS AS INTRODUCED:

35 ILCS 5/241 new

Amends the Illinois Income Tax Act. Provides that a taxpayer who is a family caregiver is eligible to receive a nonrefundable income tax credit in an amount equal to 100% of the eligible expenditures incurred by the taxpayer during the taxable year related to the care of an eligible family member, subject to specified limits. Effective immediately.

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 241 as follows:

(35 ILCS 5/241 new)

Sec. 241. Family caregiver tax credit.

(a) As used in this Section:

"Activities of daily living" means everyday functions and activities that individuals usually perform without help, including, but not limited to, bathing, continence, dressing, eating, toileting, and transferring.

"Eligible expenditure" means costs associated with:

(1) improvements or alterations to the family caregiver's or eligible family member's principal residence to permit the eligible family member to remain mobile, safe, and independent;

(2) the purchase or lease of equipment that has been certified by a licensed health care provider as necessary to assist an eligible family member in carrying out one or more activities of daily living; or

(3) other goods, services, or supports that assist the family caregiver in providing care to an eligible family member, including, but not limited to, expenditures related to hiring a home care aide or personal care attendant for the eligible family member; providing respite care, adult day health, transportation, or legal or financial services for the eligible family member; and acquiring assistive technology to care for the eligible family member.

"Eligible family member" means an individual who, during the taxable year for which the credit is sought:

(1) is at least 50 years of age;

(2) requires assistance with at least one activity of daily living, as certified by a licensed health care provider;

(3) is a resident of the State; and

(4) qualifies as a dependent, spouse, parent, or other relation by blood, marriage, or civil union, including an in-law, sibling, grandparent, grandchild, step-parent, step-child, aunt, uncle, niece, or nephew of the family caregiver, or any individual whose close association with the family caregiver is the equivalent of a family relationship.

"Family caregiver" means an unpaid caregiver who, during the taxable year for which the credit is sought:

(1) is an Illinois resident and taxpayer;

(2) had uncompensated eligible expenditures, as described in subsection (a), with respect to one or more eligible family members during the taxable year; and

(3) had an adjusted gross income of less than $75,000 for an individual and $150,000 for spouses filing a joint return; in the case of a joint return, the term "family caregiver" includes the individual and the individual's spouse.

(b) For taxable years beginning on or after January 1, 2024, a taxpayer who is a family caregiver is eligible to receive a nonrefundable credit against the taxes imposed by subsections (a) and (b) of Section 201 in an amount equal to 100% of the eligible expenditures incurred by the taxpayer during the taxable year, subject to the maximum allowable credit under this subsection. No taxpayer shall be entitled to claim a tax credit under this Section for the same eligible expenditures claimed by another taxpayer.

The total amount of tax credits claimed by family caregivers for the same eligible family member shall not exceed $750. If 2 or more family caregivers claim more than $750 in tax credits for the same eligible family member, then the total amount of the credit allowed shall be allocated in amounts proportionate to each eligible taxpayer's share of the total amount of the eligible expenditures for the eligible family member. A taxpayer may claim a credit for only one eligible family member per taxable year.

A taxpayer may not claim a tax credit under this Section for expenses incurred in carrying out general household maintenance activities, such as painting, plumbing, electrical repairs, or exterior maintenance.

(c) The Department on Aging shall adopt rules for the implementation of this Section.

(d) A taxpayer claiming a credit under this Act shall, upon showing proof of eligible expenditures, receive from the Department on Aging a certificate of verification regarding eligibility for the credit under this Section. The taxpayer shall submit to the Department of Revenue a copy of the certificate of verification received for the taxable year.

(e) By November 1, 2026 and each November 1 thereafter, the Department of Revenue shall file a report with the Governor and the General Assembly and publish on its website the total amount of tax credits claimed under this Section and the total number of taxpayers who received the credit for the preceding fiscal year.

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

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