102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4771

 

Introduced 1/27/2022, 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 $1,500 for the same eligible family member. Provides that the term "eligible family member" means a person who: (1) is at least 18 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 or is an individual whose close association with the family caregiver is the equivalent of a family relationship. Effective immediately.


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A BILL FOR

 

HB4771LRB102 24158 HLH 33384 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
5adding Section 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
9have the following meanings unless the context clearly
10requires otherwise:
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 18 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, or any individual whose close association with
18    the family caregiver is the equivalent of a family
19    relationship.
20    "Family caregiver" means an unpaid caregiver who (i) is an
21Illinois resident and taxpayer for the taxable year, (ii) had
22uncompensated eligible expenditures, as described in
23subsection (a), with respect to one or more eligible family
24members during the taxable year, and (iii) had an adjusted
25gross income of less than $75,000 for an individual and
26$150,000 for spouses filing a joint return. In the case of a

 

 

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1joint return, the term "family caregiver" includes the
2individual and the individual's spouse.
3    (b) For taxable years beginning on or after January 1,
42023, a taxpayer who is a family caregiver is eligible to
5receive a nonrefundable credit against the taxes imposed by
6subsections (a) and (b) of Section 201 in an amount equal to
7100% of the eligible expenditures incurred by the taxpayer
8during the taxable year, subject to the maximum allowable
9credit under this subsection. No taxpayer shall be entitled to
10claim a tax credit under this Section for the same eligible
11expenditures claimed by another taxpayer.
12    The total amount of tax credits claimed by family
13caregivers shall not exceed $1,500 for the same eligible
14family member. If 2 or more family caregivers claim tax
15credits for the same eligible family member, the total of
16which exceeds $1,500, then the total amount of the credit
17allowed shall be allocated in amounts proportionate to each
18eligible taxpayer's share of the total amount of the eligible
19expenditures for the eligible family member. A taxpayer may
20claim a credit for only one eligible family member per taxable
21year.
22    A taxpayer may not claim a tax credit under this Section
23for expenses incurred in carrying out general household
24maintenance activities, including painting, plumbing,
25electrical repairs, or exterior maintenance.
26    (c) The Department of Revenue and the Department on Aging

 

 

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1shall jointly adopt rules for the implementation of this
2Section.
3    (d) A taxpayer claiming a credit under this Act shall,
4upon showing proof of eligible expenditures, receive from the
5Department on Aging a certificate of verification regarding
6eligibility for the credit under this Section. The taxpayer
7shall submit to the Department of Revenue a copy of the
8certificate of verification received for the taxable year.
9    (e) The Department shall annually, no later than November
101, file a report with the Governor, the General Assembly, and
11publish on the Department on Aging and Department of Revenue's
12websites the total amount of tax credits claimed under this
13Section and the total number of taxpayers who received the
14credit for the preceding fiscal year.
15    (f) This Section is exempt from the provisions of Section
16250.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.