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.


LRB098 17284 HLH 52378 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5314LRB098 17284 HLH 52378 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 adding
5Section 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Adoption expenses credit.
8    (a) For each taxable year beginning on or after January 1,
92014, each individual taxpayer who adopts a child during the
10taxable year is entitled to a credit against the tax imposed by
11subsections (a) and (b) of Section 201 of this Act in an amount
12equal to the nonrecurring adoption expenses incurred by the
13taxpayer in connection with that adoption. The credit under
14this Section may not exceed $4,000 per child.
15    (b) In no event shall a credit under this Section reduce
16the taxpayer's liability to less than zero. If the amount of
17the credit exceeds the tax liability for the year, the excess
18may be carried forward and applied to the tax liability of the
195 taxable years following the excess credit year. The tax
20credit shall be applied to the earliest year for which there is
21a tax liability. If there are credits for more than one year
22that are available to offset a liability, the earlier credit
23shall be applied first.

 

 

HB5314- 2 -LRB098 17284 HLH 52378 b

1    (c) As used in this Section, the following terms have the
2following meanings.
3    "Child" means a person who is under the age of 18 years and
4who is adopted in this State or placed for adoption from this
5State.
6    "Nonrecurring adoption expenses" means reasonable and
7necessary adoption fees, court costs, attorney fees, and
8expenses which are directly related to the legal process of
9adoption of a child, which are incurred to complete the
10adoption process or meet federal requirements and are not
11reimbursed, including costs related to the adoption study,
12health and psychological examinations, supervision of the
13placement before the adoption, and transportation and
14reasonable costs of lodging and food for the child or adoptive
15parents.
16    (d) This Section is exempt from the provisions of Section
17250.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.