Bill > HB0013

This bill amends the Illinois Income Tax Act to create a tax credit for foster parents, providing financial support for those caring for children in the foster care system. The credit allows foster parents to claim up to $1,000 per taxable year for expenses related to caring for a qualifying dependent child, starting from January 1, 2025. To be eligible for the full credit, foster parents must be under contract with the Department of Children and Family Services (DCFS) and provide care for at least 6 months during the tax year. If care is provided for less than 6 months, the credit will be prorated based on the number of days of care. The credit cannot reduce a taxpayer's liability below zero, but any excess credit can be carried forward and applied to tax liability for the next 5 years. A qualifying dependent child is defined as an Illinois resident in DCFS custody who is the foster child of the taxpayer. The DCFS, in collaboration with the Department of Revenue, will develop rules to implement this tax credit, which is designed to provide financial assistance and support to foster parents in Illinois.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=13&GAID=18&DocTypeID=HB&SessionID=114&GA=104