95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB1996


 
Introduced 2/26/2007, by Rep. Michael K. Smith
 
SYNOPSIS AS INTRODUCED:
 		












35 ILCS 5/218 new











    Amends the Illinois Income Tax Act.  Allows an income tax credit in an amount
equal to 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 $1,000 or the taxpayer's
liability, whichever is less.  Prohibits the carry forward of an excess tax
credit to a succeeding year's tax liability. Exempts the credit from the sunset
provisions.  Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB1996

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1
    AN ACT concerning revenue. 

 
2
    Be it enacted by the People of the State of Illinois, 
3
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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For
taxable years ending on or after December 31, 2007, an 
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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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equal to
the premium costs paid by the taxpayer during the 
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taxable year for a
qualified long term care insurance contract 
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as defined by Section 7702B of the
Internal Revenue Code that 
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offers coverage to either the individual or the
individual's 
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spouse, parent, or dependent as defined in Section 152 of the

16
Internal Revenue Code.  The credit allowed under this Section 
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may not exceed
$1,000 for each qualified long term care policy 
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or the amount of the taxpayer's
liability under this Act,

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whichever is less.  A taxpayer is not entitled to the credit 
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with respect to
amounts expended for the same qualified long 
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term care insurance contract that
are claimed by another 
22
taxpayer.  If the amount of the credit exceeds the
taxpayer's 
23
liability under this Act for the year, then the excess may not 
 


 






HB1996
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1
be
carried forward to apply to the taxpayer's liability for the 
2
succeeding year.
The provisions of Section 250 do not apply to 
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the credit under this Section.

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