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92_SB0742
LRB9204526SMdv
1 AN ACT concerning taxes.
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 213 as follows:
6 (35 ILCS 5/213 new)
7 Sec. 213. Dependent care tax credit.
8 (a) Beginning with taxable years ending on or after
9 December 31, 2001 and ending with taxable years ending on or
10 before December 30, 2006, each individual taxpayer is
11 entitled to a credit against the tax imposed by subsections
12 (a) and (b) of Section 201 in an amount equal to $500
13 multiplied by the number of applicable individuals with
14 respect to whom the taxpayer is an eligible caregiver for the
15 taxable year.
16 (b) As used in this Section, "applicable individual"
17 means, with respect to any taxable year, any individual who
18 has been certified, before the due date for filing the return
19 of tax for the taxable year (without extensions), by a
20 physician licensed to practice medicine in all its branches
21 under the Medical Practice Act of 1987 as being an individual
22 with long-term care needs described in subsection (c) for a
23 period:
24 (1) which is at least 180 consecutive days, and
25 (2) a portion of which occurs within the taxable
26 year.
27 (c) As used in this Section, an individual is an
28 individual with long term care needs if the individual meets
29 any of the following requirements:
30 (1) The individual is at least 6 years of age and:
31 (A) is unable to perform (without substantial
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1 assistance from another individual) at least 3
2 activities of daily living, as defined in Section
3 7702B(c)(2)(B) of the Internal Revenue Code, due to
4 a loss of functional capacity, or
5 (B) requires substantial supervision to
6 protect that individual from threats to health and
7 safety due to severe cognitive impairment and is
8 unable to perform at least one activity of daily
9 living, as defined in Section 7702B(c)(2)(B) of the
10 Internal Revenue Code, or is unable to engage in age
11 appropriate activities.
12 (2) The individual is at least 2 years of age but
13 less than 6 years of age and is unable due to a loss of
14 functional capacity to perform (without substantial
15 assistance from another individual) at least 2 of the
16 following activities: eating, transferring, or mobility.
17 (3) The individual is under 2 years of age and
18 requires specific durable medical equipment by reason of
19 a severe health condition or requires a skilled
20 practitioner trained to address the individual's
21 condition to be available if the individual's parents or
22 guardians are absent.
23 (d) A taxpayer shall be treated as an "eligible
24 caregiver" for any taxable year with respect to the following
25 individuals:
26 (1) The taxpayer.
27 (2) The taxpayer's spouse.
28 (3) An individual with respect to whom the taxpayer
29 is allowed an exemption under Section 204 for the taxable
30 year.
31 (e) Persons eligible to claim credit.
32 (1) If more than one individual is an eligible
33 caregiver with respect to the same applicable individual
34 for taxable years ending with or within the same calendar
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1 year, a taxpayer shall be treated as the eligible
2 caregiver if each of those individuals (other than the
3 taxpayer) files a written declaration (in the form and
4 manner as the Department may prescribe) that that
5 individual will not claim that applicable individual for
6 the credit under this Section.
7 (2) If each individual required under subdivision
8 (e)(1) to file a written declaration under subdivision
9 (e)(1) does not do so, the individual with the highest
10 federal modified adjusted gross income (as defined in
11 Section 32(c)(5) of the Internal Revenue Code for federal
12 purposes) shall be treated as the eligible caregiver.
13 (3) In the case of married individuals filing
14 separate returns, the determination under this subsection
15 (e) as to whether the husband or wife is the eligible
16 caregiver shall be made under the rules of subdivision
17 (e)(2) (whether or not one of them has filed a written
18 declaration under subdivision (e)(1)).
19 (f) No credit shall be allowed under this Section to a
20 taxpayer with respect to any applicable individual unless the
21 taxpayer includes the name and taxpayer identification number
22 of that individual, and the identification number of the
23 physician certifying that individual, on the return of tax
24 for the taxable year.
25 (g) The taxpayer shall retain the physician
26 certification required by subdivision (b) and shall make that
27 certification available to the Department upon request.