101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4363

 

Introduced 1/29/2020, by Rep. Anna Moeller

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 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, but not exceed $750 for the same eligible family member. Provides that the term "eligible family member" means a person who: (1) is at least 50 years of age during a taxable year; (2) requires assistance with at least one activity of daily living; (3) is a resident of the State; and (4) is related to the family caregiver. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Family caregiver tax credit.
8    (a) As used in this Section, the following words shall have
9the following meanings unless the context clearly requires
10otherwise:
11    "Activities of daily living" means everyday functions and
12activities, which individuals usually do without help,
13including, but not limited to, bathing, continence, dressing,
14eating, toileting and transferring as certified by a licensed
15health care provider.
16    "Eligible expenditure" means costs associated with:
17        (1) improvements or alterations to the family
18    caregiver's or eligible family member's principal
19    residence to permit the eligible family member to remain
20    mobile, safe, and independent;
21        (2) the purchase or lease of equipment that is
22    necessary to assist an eligible family member in carrying
23    out one or more activities of daily living; or

 

 

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1        (3) other goods, services or supports that assist the
2    family caregiver in providing care to an eligible family
3    member, including, but not limited to: expenditures
4    related to hiring a home care aide or personal care
5    attendant, respite care, adult day health, transportation,
6    legal and financial services, and assistive technology to
7    care for their loved one.
8    "Eligible family member" means an individual who:
9        (1) is at least 50 years of age during a taxable year;
10        (2) requires assistance with at least one activity of
11    daily living;
12        (3) is a resident of the State; and
13        (4) qualifies as a dependent, spouse, parent, or other
14    relation by blood, marriage, or civil union, including an
15    in-law, sibling, grandparent, grandchild, step-parent,
16    step-child, aunt, uncle, niece, or nephew of the family
17    caregiver.
18    "Family caregiver" means an unpaid caregiver who (i) is an
19Illinois resident and taxpayer for the taxable year, (ii) had
20uncompensated eligible expenditures, as described in
21subsection (a), with respect to one or more eligible family
22members during the taxable year, and (iii) had an adjusted
23gross income of less than $75,000 for an individual and
24$150,000 for spouses filing a joint return. In the case of a
25joint return, the term "family caregiver" includes the
26individual and the individual's spouse.

 

 

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1    (b) For taxable years beginning on or after January 1,
22021, a taxpayer who is a family caregiver is eligible to
3receive a nonrefundable credit against the taxes imposed by
4subsections (a) and (b) of Section 201 in an amount equal to
5100% of the eligible expenditures incurred by the taxpayer
6during the taxable year and verified by the Department on
7Aging, subject to the maximum allowable credit under this
8subsection. No taxpayer shall be entitled to claim a tax credit
9under this Section for the same eligible expenditures claimed
10by another taxpayer.
11    The total amount of tax credits claimed by family
12caregivers shall not exceed $750 for the same eligible family
13member. If 2 or more family caregivers claim tax credits for
14the same eligible family member, the total of which exceeds
15$750, then the total amount of the credit allowed shall be
16allocated in amounts proportionate to each eligible taxpayer's
17share of the total amount of the eligible expenditures for the
18eligible family member. A taxpayer may claim a credit for only
19one eligible family member per taxable year.
20    A taxpayer may not claim a tax credit under this Section
21for expenses incurred in carrying out general household
22maintenance activities, including painting, plumbing,
23electrical repairs, or exterior maintenance.
24    (c) The Department of Revenue and the Department on Aging
25shall jointly adopt rules for the implementation of this
26Section.

 

 

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1    (c-5) A taxpayer claiming a credit under this Act shall,
2upon showing proof of eligible expenditures, receive from the
3Department of Aging a certificate of verification regarding
4eligibility for the credit under this Section. The taxpayer
5shall submit to the Department of Revenue a copy of the
6certificate of verification received for the taxable year.
7    (d) The Department of Revenue shall annually, no later than
8November 1, file a report with the Governor and the General
9Assembly and publish on the Department on Aging's and the
10Department of Revenue's websites the total amount of tax
11credits claimed under this Section and the total number of
12taxpayers who received the credit for the preceding fiscal
13year.
14    (e) This Section is exempt from the provisions of Section
15250.
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.