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92_HB0925 LRB9204463SMdv 1 AN ACT concerning taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Income Tax Act is amended by 5 adding Section 213 as follows: 6 (35 ILCS 5/213 new) 7 Sec. 213. Dependent care tax credit. 8 (a) Beginning with taxable years ending on or after 9 December 31, 2001 and ending with taxable years ending on or 10 before December 30, 2006, each individual taxpayer is 11 entitled to a credit against the tax imposed by subsections 12 (a) and (b) of Section 201 in an amount equal to $500 13 multiplied by the number of applicable individuals with 14 respect to whom the taxpayer is an eligible caregiver for the 15 taxable year. 16 (b) As used in this Section, "applicable individual" 17 means, with respect to any taxable year, any individual who 18 has been certified, before the due date for filing the return 19 of tax for the taxable year (without extensions), by a 20 physician licensed to practice medicine in all its branches 21 under the Medical Practice Act of 1987 as being an individual 22 with long-term care needs described in subsection (c) for a 23 period: 24 (1) which is at least 180 consecutive days, and 25 (2) a portion of which occurs within the taxable 26 year. 27 "Applicable individual" does not include any individual 28 otherwise meeting the requirements of the preceding sentence 29 unless within the 39 1/2 month period ending on that due date 30 (or such other period as the Department prescribes) a 31 physician licensed to practice medicine in all its branches -2- LRB9204463SMdv 1 under the Medical Practice Act of 1987 has certified that 2 that individual meets those requirements. 3 (c) As used in this Section, an individual is an 4 individual with long term care needs if the individual meets 5 any of the following requirements: 6 (1) The individual is at least 6 years of age and: 7 (A) is unable to perform (without substantial 8 assistance from another individual) at least 3 9 activities of daily living, as defined in Section 10 7702B(c)(2)(B) of the Internal Revenue Code, due to 11 a loss of functional capacity, or 12 (B) requires substantial supervision to 13 protect that individual from threats to health and 14 safety due to severe cognitive impairment and is 15 unable to perform at least one activity of daily 16 living, as defined in Section 7702B(c)(2)(B) of the 17 Internal Revenue Code, or to the extent provided by 18 the Department (in consultation with the Secretary 19 of Human Services), is unable to engage in age 20 appropriate activities. 21 (2) The individual is at least 2 years of age but 22 less than 6 years of age and is unable due to a loss of 23 functional capacity to perform (without substantial 24 assistance from another individual) at least 2 of the 25 following activities: eating, transferring, or mobility. 26 (3) The individual is under 2 years of age and 27 requires specific durable medical equipment by reason of 28 a severe health condition or requires a skilled 29 practitioner trained to address the individual's 30 condition to be available if the individual's parents or 31 guardians are absent. 32 (d) A taxpayer shall be treated as an "eligible 33 caregiver" for any taxable year with respect to the following 34 individuals: -3- LRB9204463SMdv 1 (1) The taxpayer. 2 (2) The taxpayer's spouse. 3 (3) An individual with respect to whom the taxpayer 4 is allowed an exemption under Section 204 for the taxable 5 year. 6 (4) An individual who would be described in 7 subdivision (d)(3) for the taxable year if Section 8 151(c)(1)(A) of the Internal Revenue Code, relating to 9 gross income limitation, were applied by substituting for 10 the federal exemption amount specified in that Section, 11 an amount equal to the sum of the federal exemption 12 amount specified in that Section, the federal standard 13 deduction under Section 63(c)(2)(C) of the Internal 14 Revenue Code, and any additional federal standard 15 deduction under Section 63(c)(3) of the Internal Revenue 16 Code which would be applicable to the individual if 17 subdivision (d)(3) applied. 18 (5) An individual who would be described in 19 subdivision (d)(3) for the taxable year if: 20 (A) the requirements of subdivision (d)(4) are 21 met with respect to the individual, and 22 (B) the requirements of subsection (e) are met 23 with respect to the individual in lieu of the 24 support test of Section 152(a) of the Internal 25 Revenue Code. 26 (e) The requirements of this subsection are met if an 27 individual has as his or her principal place of abode the 28 home of the taxpayer, and 29 (1) in the case of an individual who is an ancestor 30 or descendant of the taxpayer or the taxpayer's spouse, 31 is a member of the taxpayer's household for over half the 32 taxable year, or 33 (2) in the case of any other individual, is a 34 member of the taxpayer's household for the entire taxable -4- LRB9204463SMdv 1 year. 2 (f) Persons eligible to claim credit. 3 (1) If more than one individual is an eligible 4 caregiver with respect to the same applicable individual 5 for taxable years ending with or within the same calendar 6 year, a taxpayer shall be treated as the eligible 7 caregiver if each of those individuals (other than the 8 taxpayer) files a written declaration (in the form and 9 manner as the Department may prescribe) that that 10 individual will not claim that applicable individual for 11 the credit under this Section. 12 (2) If each individual required under subdivision 13 (f)(1) to file a written declaration under subdivision 14 (f)(1) does not do so, the individual with the highest 15 federal modified adjusted gross income (as defined in 16 Section 32(c)(5) of the Internal Revenue Code for federal 17 purposes) shall be treated as the eligible caregiver. 18 (3) In the case of married individuals filing 19 separate returns, the determination under this subsection 20 (f) as to whether the husband or wife is the eligible 21 caregiver shall be made under the rules of subdivision 22 (f)(2) (whether or not one of them has filed a written 23 declaration under subdivision (f)(1)). 24 (g) No credit shall be allowed under this Section to a 25 taxpayer with respect to any applicable individual unless the 26 taxpayer includes the name and taxpayer identification number 27 of that individual, and the identification number of the 28 physician certifying that individual, on the return of tax 29 for the taxable year. 30 (h) The taxpayer shall retain the physician 31 certification required by subdivision (b) and shall make that 32 certification available to the Department upon request.
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