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90_SB1519
35 ILCS 5/211 new
Amends the Illinois Income Tax Act. Creates a credit
against the taxes imposed under the Act for individuals for
expenditures made for child care. Provides that the amount
of the credit depends on the amount of the taxpayer's federal
adjusted gross income and the amount of the federal child
care credit the taxpayer is entitled to. Provides that any
excess credit may be carried forward and applied to the tax
liability of the 5 following taxable years. Provides that an
individual who receives child care assistance from the
Department of Human Services shall be entitled to a credit
only to the extent of unreimbursed out-of-pocket expenses
that result in a federal credit for child care expense.
Provides that the credit is available for taxable years
beginning on or after January 1, 1998. Sunsets the credit
after 5 years. Effective January 1, 1999.
LRB9011257KDks
LRB9011257KDks
1 AN ACT to amend the Illinois Income Tax Act by adding
2 Section 211.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Income Tax Act is amended by
6 adding Section 211 as follows:
7 (35 ILCS 5/211 new)
8 Sec. 211. Child care expense credit.
9 (a) For taxable years beginning on or after January 1,
10 1998 and ending on or before December 30, 2003, if an
11 individual claims a credit for child care expenses on the
12 individual's federal income tax return, the individual is
13 entitled to a credit against the taxes imposed under this Act
14 for amounts spent on child care. The amount of the credit
15 shall be as follows:
16 (1) If the taxpayer's federal adjusted gross income
17 is $25,000 or less, the credit shall be an amount equal
18 to 50% of the credit for child care expenses claimed on
19 the taxpayer's federal return.
20 (2) If the taxpayer's federal adjusted gross income
21 is more than $25,000 but not more than $35,000, the
22 credit shall be an amount equal to 30% of the credit for
23 child care expenses claimed on the taxpayer's federal
24 return.
25 (3) If the taxpayer's federal adjusted gross income
26 is more than $35,000 but not more than $80,000, the
27 credit shall be an amount equal to 10% of the credit for
28 child care expenses claimed on the taxpayer's federal
29 return.
30 (4) If the taxpayer's federal adjusted gross income
31 is more than $80,000, the taxpayer shall not be entitled
-2- LRB9011257KDks
1 to a credit under this Section.
2 (b) If the amount of credit exceeds the tax liability
3 for the year, the excess may be carried forward and applied
4 to the tax liability of the 5 taxable years following the
5 excess year. The credit shall be applied to the earliest
6 year for which there is a tax liability. If there are
7 credits for more than one tax year that are available to
8 offset a liability, the earlier credit shall be applied
9 first.
10 (c) A taxpayer who receives child care assistance from
11 the Department of Human Services under Section 9A-11 of the
12 Illinois Public Aid Code shall not be entitled to a credit
13 under this Section except to the extent of the taxpayer's
14 unreimbursed out-of-pocket expenses that result in a federal
15 credit for child care expense.
16 Section 99. Effective date. This Act takes effect
17 January 1, 1999.