Bill > HB3013

This bill amends the Illinois Income Tax Act to create a new tax credit for foster care parents, providing financial support for those caring for children through the Department of Children and Family Services (DCFS). Starting in 2025, foster parents can claim a tax credit of up to $1,000 per qualifying dependent child, with specific eligibility requirements. To receive the full credit, foster parents must be under contract with 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. For taxpayers with a federal adjusted gross income of $50,000 or less, the credit is fully refundable, meaning they can receive the excess credit amount as a cash refund. For those with higher incomes, any excess credit can be carried forward and applied to tax liability in the next 5 years. The bill defines a "qualifying dependent child" as an Illinois resident in DCFS custody who is the foster child of the taxpayer. The Department of Children and Family Services, in collaboration with the Department of Revenue, will develop rules to implement this new tax credit.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3013&GAID=18&DocTypeID=HB&SessionID=114&GA=104