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90_SB1519 35 ILCS 5/211 new Amends the Illinois Income Tax Act. Creates a credit against the taxes imposed under the Act for individuals for expenditures made for child care. Provides that the amount of the credit depends on the amount of the taxpayer's federal adjusted gross income and the amount of the federal child care credit the taxpayer is entitled to. Provides that any excess credit may be carried forward and applied to the tax liability of the 5 following taxable years. Provides that an individual who receives child care assistance from the Department of Human Services shall be entitled to a credit only to the extent of unreimbursed out-of-pocket expenses that result in a federal credit for child care expense. Provides that the credit is available for taxable years beginning on or after January 1, 1998. Sunsets the credit after 5 years. Effective January 1, 1999. LRB9011257KDks LRB9011257KDks 1 AN ACT to amend the Illinois Income Tax Act by adding 2 Section 211. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Income Tax Act is amended by 6 adding Section 211 as follows: 7 (35 ILCS 5/211 new) 8 Sec. 211. Child care expense credit. 9 (a) For taxable years beginning on or after January 1, 10 1998 and ending on or before December 30, 2003, if an 11 individual claims a credit for child care expenses on the 12 individual's federal income tax return, the individual is 13 entitled to a credit against the taxes imposed under this Act 14 for amounts spent on child care. The amount of the credit 15 shall be as follows: 16 (1) If the taxpayer's federal adjusted gross income 17 is $25,000 or less, the credit shall be an amount equal 18 to 50% of the credit for child care expenses claimed on 19 the taxpayer's federal return. 20 (2) If the taxpayer's federal adjusted gross income 21 is more than $25,000 but not more than $35,000, the 22 credit shall be an amount equal to 30% of the credit for 23 child care expenses claimed on the taxpayer's federal 24 return. 25 (3) If the taxpayer's federal adjusted gross income 26 is more than $35,000 but not more than $80,000, the 27 credit shall be an amount equal to 10% of the credit for 28 child care expenses claimed on the taxpayer's federal 29 return. 30 (4) If the taxpayer's federal adjusted gross income 31 is more than $80,000, the taxpayer shall not be entitled -2- LRB9011257KDks 1 to a credit under this Section. 2 (b) If the amount of credit exceeds the tax liability 3 for the year, the excess may be carried forward and applied 4 to the tax liability of the 5 taxable years following the 5 excess year. The credit shall be applied to the earliest 6 year for which there is a tax liability. If there are 7 credits for more than one tax year that are available to 8 offset a liability, the earlier credit shall be applied 9 first. 10 (c) A taxpayer who receives child care assistance from 11 the Department of Human Services under Section 9A-11 of the 12 Illinois Public Aid Code shall not be entitled to a credit 13 under this Section except to the extent of the taxpayer's 14 unreimbursed out-of-pocket expenses that result in a federal 15 credit for child care expense. 16 Section 99. Effective date. This Act takes effect 17 January 1, 1999.
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