State of Illinois
91st General Assembly

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 1        AN ACT to amend the Illinois Income  Tax  Act  by  adding
 2    Section 212.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The Illinois Income Tax  Act  is  amended  by
 6    adding Section 212 as follows:

 7        (35 ILCS 5/212 new)
 8        Sec.  212.  Tax  credit  for  long  term  care  insurance
 9    premiums.   Beginning  in  taxable  year  2001, an individual
10    taxpayer is entitled to a credit against the tax  imposed  by
11    subsections  (a) and (b) of Section 201 in an amount equal to
12    15% of the premium costs paid  by  the  taxpayer  during  the
13    taxable  year  for  a  qualified  long  term  care  insurance
14    contract  as defined by Section 7702B of the Internal Revenue
15    Code that offers coverage to either  the  individual  or  the
16    individual's  spouse,  parent,  or  dependent  as  defined in
17    Section 152 of the Internal Revenue Code.  The credit allowed
18    under this Section may not exceed  $200  for  each  qualified
19    long  term  care  policy  or  the  amount  of  the taxpayer's
20    liability under this Act, whichever is less.  A  taxpayer  is
21    not  entitled  to the credit with respect to amounts expended
22    for the same qualified long term care insurance contract that
23    are claimed by another taxpayer.  If the amount of the credit
24    exceeds the taxpayer's liability under this Act for the year,
25    then the excess may not be carried forward to  apply  to  the
26    taxpayer's liability for the succeeding year.  The provisions
27    of Section 250 do not apply to the credit under this Section.

28        Section  99.   Effective  date.  This Act takes effect on
29    January 1, 2001.

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