HB6106 99TH GENERAL ASSEMBLY

LRB099 17693 HLH 42052 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB6106

Introduced 2/11/2016, by Rep. Terri Bryant

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Creates a credit in an amount equal to a percentage of the credit claimed for child care expenses under Section 21 of the Internal Revenue Code. Sets forth the amount of the credit, which is based on the taxpayer's federal adjusted gross income. Provides that the credit may not exceed $500 for one dependent or $1,000 for 2 or more dependents in any taxable year. 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 Section 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Child care expense credit.

(a) For taxable years beginning on or after January 1, 2016 and beginning prior to January 1, 2021, each individual taxpayer who claims a credit for child care expenses under Section 21 of the Internal Revenue Code is allowed a credit against the tax imposed under subsections (a) and (b) of Section 201 calculated as follows:

(1) if the taxpayer's federal adjusted gross income is $25,000 or less, then the credit shall be in an amount equal to 50% of the credit claimed for child care expenses on the taxpayer's federal income tax return;

(2) if the taxpayer's federal adjusted gross income is more than $25,000 but not more than $35,000, then the credit shall be in an amount equal to 30% of the credit claimed for child care expenses on the taxpayer's federal income tax return;

(3) if the taxpayer's federal adjusted gross income is more than $35,000 but not more than $60,000, then the credit shall be in an amount equal to 10% of the credit claimed for child care expenses on the taxpayer's federal income tax return;

(4) if the taxpayer's federal adjusted gross income is more than $60,000, then the taxpayer is not entitled to a credit under this Section; and

(5) in no event may a credit under this Section exceed $500 for one dependent or $1,000 for 2 or more dependents in any taxable year.

(b) The tax credit may not reduce the taxpayer's liability to less than zero. If the amount of the tax credit exceeds the tax liability for the year, then excess credit shall be refunded to the taxpayer, but may not be carried forward to a subsequent taxable year or carried back to a previous taxable year.

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