HB4943 100TH GENERAL ASSEMBLY

LRB100 20367 HLH 35667 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4943

Introduced , by Rep. Nick Sauer

SYNOPSIS AS INTRODUCED:

35 ILCS 5/227 new
35 ILCS 5/507III new
30 ILCS 105/5.886 new

Amends the Illinois Income Tax Act. Creates a credit in an amount equal to the qualified adoption expenses paid or incurred by a taxpayer who, during the taxable year, legally adopts a child who was in the custody of the Department of Children and Family Services. Provides that the credit may not exceed $2,500 for each such child. Creates an income tax checkoff for the Helping Illinois Youth in Care Income Tax Checkoff Fund. Amends the State Finance Act to create the Fund. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

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

Section 5. The Illinois Income Tax Act is amended by adding Sections 227 and 507III as follows:

(35 ILCS 5/227 new)

Sec. 227. Adoption credit.

(a) For taxable years beginning on or after January 1, 2018, each taxpayer who legally adopts a qualifying dependent child during the taxable year is entitled to a credit in an amount equal to the qualified adoption expenses paid or incurred by the taxpayer. The amount of the credit may not exceed $2,500 for each such child. The credit under this Section may be claimed for the taxable year in which the adoption becomes final.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(c) The Department of Children and Family Services, in collaboration with the Department of Revenue, shall adopt any rules necessary to implement the provisions of this Section.

(d) As used in this Section:

"Qualified adoption expenses" has the meaning given to that term in Section 23 of the Internal Revenue Code.

"Qualifying dependent child" means an adopted child who: (1) is an Illinois resident; (2) is no more than 18 years of age at the time of the adoption; and (3) was in the custody of the Department of Children and Family Services immediately prior to being legally adopted by the taxpayer.

(e) This Section is exempt from the provisions of Section 250.

(35 ILCS 5/507III new)

Sec. 507III. Helping Illinois Youth in Care checkoff.

(a) For taxable years ending on or after December 31, 2018, the Department must print on its standard individual income tax form a provision (i) indicating that if the taxpayer wishes to contribute to the Helping Illinois Youth in Care Income Tax Checkoff Fund, as authorized by this amendatory Act of the 100th General Assembly, he or she may do so by stating the amount of the contribution (not less than $1) on the return and (ii) stating that the contribution will reduce the taxpayer's refund or increase the amount of payment to accompany the return. Failure to remit any amount of increased payment shall reduce the contribution accordingly. This Section does not apply to any amended return.

(b) The Helping Illinois Youth in Care Income Tax Checkoff Fund is created as a special fund in the State treasury. Moneys in the Fund shall be used by the Department of Children and Family Services for the purpose of making grants and providing financial support to foster care programs in the State that are administered by the Department of Children and Family Services. The Department of Children and Family Services may allocate a portion of the moneys in the Fund to the Children's Benefit Fund, a charitable trust administered by the Department of Children and Family Services.

Section 10. The State Finance Act is amended by adding Section 5.886 as follows:

(30 ILCS 105/5.886 new)

Sec. 5.886. The Helping Illinois Youth in Care Income Tax Checkoff Fund.

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