95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0589


 
Introduced 2/5/2007, by Rep. Carolyn H. Krause
 
SYNOPSIS AS INTRODUCED:
 		












35 ILCS 5/218 new











    Amends the Illinois Income Tax Act.  Allows an income tax credit in an amount
equal to 15% of the premium costs paid for a qualified long-term care insurance
contract covering the individual taxpayer or the taxpayer's spouse, parent, or
dependent.  Provides that the credit may not exceed $200 with respect to any qualified long-term care insurance
contract.  Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Exempts the credit from the sunset
provisions.  Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB0589

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1
    AN ACT concerning revenue. 

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


 
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    Section 5. The Illinois Income Tax Act is amended by adding 
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Section 218 as
follows:


 
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    (35 ILCS 5/218 new)

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    Sec. 218. Tax credit for long-term care insurance premiums.
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    (a) For
taxable years ending on or after December 31, 2007, 
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an individual taxpayer is
entitled to a credit
against
the tax 
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imposed by subsections (a) and (b) of Section 201 in an amount, 
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subject to the limitations set forth under subsection (b),  
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equal to
15% of the premium costs paid, during the taxable 
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year,  by the taxpayer for a
qualified long-term care insurance 
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contract that offers coverage to the taxpayer or to the

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taxpayer's spouse, parent, or dependent.
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    (b) The credit allowed under this Section may not exceed 
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$200 with respect to any qualified long-term care policy.  A 
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taxpayer is not entitled to the credit with respect to
amounts 
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expended for the same qualified long-term care insurance 
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contract that
are claimed by another taxpayer.
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    The credit under this Section may not be carried forward or 
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back and may not reduce the taxpayer's liability to less than 
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zero.
 


 






HB0589
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1
    (c) The provisions of Section 250 do not apply to the 
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credit under this Section.
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    (d) For the purposes of this Section:
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    "Qualified long-term care insurance contract" has the 
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meaning set forth under Section 7702B of the
Internal Revenue 
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Code.
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    "Dependent"has the meaning set forth under Section 152 of 
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the
Internal Revenue Code.


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