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| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB4676 Introduced 2/6/2024, by Rep. Anna Moeller SYNOPSIS AS INTRODUCED: | | | 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, subject to specified limits. Effective immediately. |
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| | A BILL FOR |
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1 | | AN ACT concerning revenue. |
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 241 as follows: |
6 | | (35 ILCS 5/241 new) |
7 | | Sec. 241. Family caregiver tax credit. |
8 | | (a) As used in this Section: |
9 | | "Activities of daily living" means everyday functions and |
10 | | activities that individuals usually perform without help, |
11 | | including, but not limited to, bathing, continence, dressing, |
12 | | eating, toileting, and transferring. |
13 | | "Eligible expenditure" means costs associated with: |
14 | | (1) improvements or alterations to the family |
15 | | caregiver's or eligible family member's principal |
16 | | residence to permit the eligible family member to remain |
17 | | mobile, safe, and independent; |
18 | | (2) the purchase or lease of equipment that has been |
19 | | certified by a licensed health care provider as necessary |
20 | | to assist an eligible family member in carrying out one or |
21 | | more activities of daily living; or |
22 | | (3) other goods, services, or supports that assist the |
23 | | family caregiver in providing care to an eligible family |
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1 | | member, including, but not limited to, expenditures |
2 | | related to hiring a home care aide or personal care |
3 | | attendant for the eligible family member; providing |
4 | | respite care, adult day health, transportation, or legal |
5 | | or financial services for the eligible family member; and |
6 | | acquiring assistive technology to care for the eligible |
7 | | family member. |
8 | | "Eligible family member" means an individual who, during |
9 | | the taxable year for which the credit is sought: |
10 | | (1) is at least 50 years of age; |
11 | | (2) requires assistance with at least one activity of |
12 | | daily living, as certified by a licensed health care |
13 | | provider; |
14 | | (3) is a resident of the State; and |
15 | | (4) qualifies as a dependent, spouse, parent, or other |
16 | | relation by blood, marriage, or civil union, including an |
17 | | in-law, sibling, grandparent, grandchild, step-parent, |
18 | | step-child, aunt, uncle, niece, or nephew of the family |
19 | | caregiver, or any individual whose close association with |
20 | | the family caregiver is the equivalent of a family |
21 | | relationship. |
22 | | "Family caregiver" means an unpaid caregiver who, during |
23 | | the taxable year for which the credit is sought: |
24 | | (1) is an Illinois resident and taxpayer; |
25 | | (2) had uncompensated eligible expenditures, as |
26 | | described in subsection (a), with respect to one or more |
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1 | | eligible family members during the taxable year; and |
2 | | (3) had an adjusted gross income of less than $75,000 |
3 | | for an individual and $150,000 for spouses filing a joint |
4 | | return; in the case of a joint return, the term "family |
5 | | caregiver" includes the individual and the individual's |
6 | | spouse. |
7 | | (b) For taxable years beginning on or after January 1, |
8 | | 2024, a taxpayer who is a family caregiver is eligible to |
9 | | receive a nonrefundable credit against the taxes imposed by |
10 | | subsections (a) and (b) of Section 201 in an amount equal to |
11 | | 100% of the eligible expenditures incurred by the taxpayer |
12 | | during the taxable year, subject to the maximum allowable |
13 | | credit under this subsection. No taxpayer shall be entitled to |
14 | | claim a tax credit under this Section for the same eligible |
15 | | expenditures claimed by another taxpayer. |
16 | | The total amount of tax credits claimed by family |
17 | | caregivers for the same eligible family member shall not |
18 | | exceed $750. If 2 or more family caregivers claim more than |
19 | | $750 in tax credits for the same eligible family member, then |
20 | | the total amount of the credit allowed shall be allocated in |
21 | | amounts proportionate to each eligible taxpayer's share of the |
22 | | total amount of the eligible expenditures for the eligible |
23 | | family member. A taxpayer may claim a credit for only one |
24 | | eligible family member per taxable year. |
25 | | A taxpayer may not claim a tax credit under this Section |
26 | | for expenses incurred in carrying out general household |
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1 | | maintenance activities, such as painting, plumbing, electrical |
2 | | repairs, or exterior maintenance. |
3 | | (c) The Department on Aging shall adopt rules for the |
4 | | implementation of this Section. |
5 | | (d) A taxpayer claiming a credit under this Act shall, |
6 | | upon showing proof of eligible expenditures, receive from the |
7 | | Department on Aging a certificate of verification regarding |
8 | | eligibility for the credit under this Section. The taxpayer |
9 | | shall submit to the Department of Revenue a copy of the |
10 | | certificate of verification received for the taxable year. |
11 | | (e) By November 1, 2026 and each November 1 thereafter, |
12 | | the Department of Revenue shall file a report with the |
13 | | Governor and the General Assembly and publish on its website |
14 | | the total amount of tax credits claimed under this Section and |
15 | | the total number of taxpayers who received the credit for the |
16 | | preceding fiscal year. |
17 | | (f) This Section is exempt from the provisions of Section |
18 | | 250. |
19 | | Section 99. Effective date. This Act takes effect upon |
20 | | becoming law. |