Bill Text: IL HB3013 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the foster care expenses, not to exceed $1,000 in any taxable year, paid or incurred by the taxpayer with respect to a qualified dependent child. Provides that the credit may be prorated. Provides that the credit is refundable if the taxpayer's federal adjusted gross income for the taxable year does not exceed $50,000. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-06 - Referred to Rules Committee [HB3013 Detail]

Download: Illinois-2025-HB3013-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3013 Introduced , by Rep. Dave Severin SYNOPSIS AS INTRODUCED:
35 ILCS 5/246 new
Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the foster care expenses, not to exceed $1,000 in any taxable year, paid or incurred by the taxpayer with respect to a qualified dependent child. Provides that the credit may be prorated. Provides that the credit is refundable if the taxpayer's federal adjusted gross income for the taxable year does not exceed $50,000. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
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 246 as follows:
(35 ILCS 5/246 new)
Sec. 246. Foster care credit.
(a) For taxable years beginning on or after January 1,
2025, there shall be allowed a credit against the tax imposed
by subsections (a) and (b) of Section 201 of this Act in an
amount equal to the foster care expenses paid or incurred, not
to exceed $1,000 in any taxable year, for each qualifying
dependent child legally cared for by the foster care parent in
Illinois. The tax credit under this Section may be claimed for
the taxable year in which the foster care parent becomes the
legal guardian of a foster child. The taxpayer must be under
contract with the Department of Children and Family Services
and providing care to the qualifying dependent child for at
least 6 months during the taxable year to receive the full
credit. If the taxpayer is under contract with the Department
of Children and Family Services and providing care to the
qualifying dependent child for less than 6 months during the
taxable year, then the taxpayer is entitled to a credit in an

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amount equal to: the lesser of (i) the foster care expenses
paid or incurred by the taxpayer or (ii) $1,000; multiplied by
a fraction the numerator of which is the number of days during
the taxable year during which the taxpayer is under contract
with the Department of Children and Family Services and
providing care to the qualifying dependent child and the
denominator of which is 365.
(b) In no event shall a credit under this Section reduce a
taxpayer's liability to less than zero. If the taxpayer's
federal adjusted gross income for the taxable year does not
exceed $50,000, then the excess credit amount shall be
refunded to the taxpayer. The amount of the refund shall not be
included in the taxpayer's income or resources for the
purposes of determining the taxpayer's eligibility or benefit
level for any means-tested benefit program administered by a
governmental entity unless required by federal law. If the
taxpayer has a federal adjusted gross income for the taxable
year that is $50,000 or more, then the excess credit amount
shall be carried forward and applied to the tax liability for
the 5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset liability, the earlier credit
shall be applied first.
(c) The Department of Children and Family Services, in
collaboration with the Department of Revenue, shall adopt any

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necessary rules to implement this Section.
(d) As used in this Section, "qualifying dependent child"
means a person who is an Illinois resident in the custody of
the Department of Children and Family Services who is the
foster child of the taxpayer seeking a credit under this
Section.
(e) This Section is exempt from the provisions of Section
250.
Section 99. Effective date. This Act takes effect upon
becoming law.