Illinois General Assembly - Full Text of HB5906
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Full Text of HB5906  93rd General Assembly



State of Illinois
2003 and 2004


Introduced 2/6/2004, by John E. Bradley


5 ILCS 5/216 new

    Amends the Illinois Income Tax Act. Provides that, for 5 taxable years, each individual taxpayer is entitled to an income tax credit in the amount of 50% of the amount spent by the taxpayer in the taxable year for long-term care insurance premiums. Provides that the tax credit may not reduce the taxpayer's liability to less than zero but may be carried forward for 5 taxable years. Effective immediately.

LRB093 16207 SJM 41840 b






HB5906 LRB093 16207 SJM 41840 b

1     AN ACT concerning taxes.
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 5. The Illinois Income Tax Act is amended by adding
5 Section 216 as follows:
6     (5 ILCS 5/216 new)
7     Sec. 216. Long-term care insurance tax credit.
8     (a) For taxable years ending on or after December 31, 2004
9 and ending on or before December 30, 2009, each individual
10 taxpayer is entitled to a credit against the tax imposed by
11 subsections (a) and (b) of Section 201 in the amount of 50% of
12 the amount spent by the taxpayer in the taxable year for
13 long-term care insurance premiums. The tax credit may not
14 reduce the taxpayer's liability to less than zero.
15     (b) If the amount of the credit exceeds the tax liability
16 for the year, the excess may be carried forward and applied to
17 the tax liability of the 5 taxable years following the excess
18 credit year. The credit shall be applied to the earliest year
19 for which there is a tax liability. If there are credits from
20 more than one tax year that are available to offset a
21 liability, the earlier credit shall be applied first.
22     (c) For purposes of this Section, "long-term care insurance
23 premium" means the amount paid during a taxable year for any
24 qualified long-term care insurance contract, as defined in
25 Section 7702B(b) of the Internal Revenue Code, covering an
26 individual.
27     Section 99. Effective date. This Act takes effect upon
28 becoming law.