HB1350 103RD GENERAL ASSEMBLY

LRB103 25766 HLH 52115 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1350

Introduced 1/31/2023, by Rep. Katie Stuart

SYNOPSIS AS INTRODUCED:

35 ILCS 5/234 new

Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who are caregivers of a veteran with a disability. Provides that the credit shall be in an amount equal to 5% of the costs incurred in caring for the veteran, not to exceed $1,000 in credits in any taxable year. Effective immediately.

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 234 as follows:

(35 ILCS 5/234 new)

Sec. 234. Caregiver credit.

(a) For taxable years ending on or after December 31, 2024, each taxpayer who is an eligible caregiver of a veteran with a disability is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 5% of the costs incurred in caring for the veteran, not to exceed $1,000 in credits in any taxable year.

(b) In no event shall a credit under this Section reduce a taxpayer's liability to less than zero. If the amount of credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability for 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 liability, the earlier credit shall be applied first.

(c) As used in this Section:

"Costs incurred" means expenditures for the following: respite care; counseling or support groups; training related to caring for a veteran with disability; travel related to caring for the veteran; technology that assists in providing care; and medical and hygiene items used by the veteran.

"Eligible caregiver" means a family member or paid worker who provides care for a qualified veteran with a disability and assists with performing the activities of daily life.

"Veteran" means an Illinois resident who has served as a member of the United States Armed Forces on active duty or State active duty, a member of the Illinois National Guard, or a member of the United States Reserve Forces who has received an honorable discharge.

"Veteran with a disability" means a veteran with a service-connected disability, as certified by the United States Department of Veterans Affairs.

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

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