HB5906 93RD GENERAL ASSEMBLY

LRB093 16207 SJM 41840 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5906

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

SYNOPSIS AS INTRODUCED:

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.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning taxes.

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 216 as follows:

(5 ILCS 5/216 new)

Sec. 216. Long-term care insurance tax credit.

(a) For taxable years ending on or after December 31, 2004 and ending on or before December 30, 2009, each individual taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount of 50% of the amount spent by the taxpayer in the taxable year for long-term care insurance premiums. The tax credit may not reduce the taxpayer's liability to less than zero.

(b) If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit shall be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, the earlier credit shall be applied first.

(c) For purposes of this Section, "long-term care insurance premium" means the amount paid during a taxable year for any qualified long-term care insurance contract, as defined in Section 7702B(b) of the Internal Revenue Code, covering an individual.

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