Illinois General Assembly - Full Text of HB5119
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Full Text of HB5119  101st General Assembly




State of Illinois
2019 and 2020


Introduced 2/18/2020, by Rep. Darren Bailey, Mike Murphy and Amy Grant


35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the foster care expenses, not to exceed $1,000 in any taxable year, paid or incurred by the taxpayer with respect to a qualified dependent child. Provides that the credit may be prorated. Effective immediately.

LRB101 16913 HLH 69163 b






HB5119LRB101 16913 HLH 69163 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 adding
5Section 232 as follows:
6    (35 ILCS 5/232 new)
7    Sec. 232. Foster care credit.
8    (a) For taxable years beginning on or after January 1,
92020, there shall be allowed a credit against the tax imposed
10by subsections (a) and (b) of Section 201 of this Act in an
11amount equal to the foster care expenses paid or incurred, not
12to exceed $1,000 in any taxable year, for each qualifying
13dependent child legally cared for by the foster care parent in
14Illinois. The tax credit under this Section may be claimed for
15the taxable year in which the foster care parent becomes the
16legal guardian of a foster child. The taxpayer must be under
17contract with the Department of Children and Family Services
18and providing care to the qualifying dependent child for at
19least 6 months during the taxable year to receive the full
20credit. If the taxpayer is under contract with the Department
21of Children and Family Services and providing care to the
22qualifying dependent child for less than 6 months during the
23taxable year, then the taxpayer is entitled to a credit in an



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1amount equal to: the lesser of (i) the foster care expenses
2paid or incurred by the taxpayer or (ii) $1,000; multiplied by
3a fraction the numerator of which is the number of days during
4the taxable year during which the taxpayer is under contract
5with the Department of Children and Family Services and
6providing care to the qualifying dependent child and the
7denominator of which is 365.
8    (b) In no event shall a credit under this Section reduce a
9taxpayer's liability to less than zero. If the amount of the
10credit exceeds the tax liability for the year, the excess may
11be carried forward and applied to the tax liability for the 5
12taxable years following the excess credit year. The tax credit
13shall be applied to the earliest year for which there is a tax
14liability. If there are credits for more than one year that are
15available to offset liability, the earlier credit shall be
16applied first.
17    (c) The Department of Children and Family Services, in
18collaboration with the Department of Revenue, shall adopt any
19necessary rules to implement this Section.
20    (d) For the purposes of this Section:
21        "Qualifying dependent child" means a person who is an
22    Illinois resident in the custody of the Department of
23    Children and Family Services who is the foster child of the
24    taxpayer seeking a credit under this Section.
25    (e) This Section is exempt from the provisions of Section



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.