HB1900 would amend the Illinois Income Tax Act to create a new nonrefundable income tax credit for unpaid caregivers who incur eligible out-of-pocket expenses while caring for an eligible related person. The credit would equal 100% of qualifying expenditures, up to $500 per caregiver per tax year, beginning with taxable years on or after January 1, 2026. Eligible expenses include home modifications needed for safety and mobility, certified assistive equipment, and certain care-related services such as home care aides, respite care, adult day health, transportation, legal or financial services, and assistive technology.
To qualify, the caregiver must be an Illinois resident taxpayer with federal adjusted gross income below $75,000 for individuals or $150,000 for joint filers, and the care recipient must be at least 50 years old, an Illinois resident, and certified as needing help with at least one activity of daily living. The bill allows a credit for only one eligible related person per taxpayer each year, limits each expense to one caregiver claim, and bars claims for ordinary household maintenance unless the work is necessary to keep the care recipient mobile, safe, and independent. Applications would be filed with the Department on Aging, which would issue certificates, administer a statewide annual cap of $1 million in credits, and adopt implementing rules.
The bill would add a new Section 246 to the Illinois Income Tax Act and create a state income tax incentive targeted at family and informal caregivers. It would affect both the Department on Aging, which would certify and allocate credits on a first-come, first-served basis, and the Department of Revenue, which would administer the credit through the tax return process and later report on usage. The measure also establishes a five-year carryforward for unused credit amounts and requires a public report by November 1, 2030 on total credits claimed and the number of recipients.
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be framed as a supportive, relief-oriented proposal for caregivers rather than a controversial policy change. Its structure suggests an attempt to provide modest financial assistance while limiting fiscal exposure through income caps, a per-taxpayer cap, and an overall annual statewide cap. No recorded opposition or support is available in the provided context, so the overall sentiment cannot be measured from debate history, but the bill’s design indicates a generally favorable policy intent toward caregiving households.
The main potential points of contention are the eligibility limits and fiscal controls. Some may question the relatively low maximum benefit of $500 and the $1 million annual statewide cap, which could limit access if demand is high. Others may focus on the income thresholds, the age floor of 50 for the care recipient, and the requirement that the recipient be certified as needing help with daily living activities, all of which narrow eligibility. There could also be debate over whether the Department on Aging should administer a tax credit, whether the first-come, first-served allocation is equitable, and whether the exclusion of ordinary home maintenance is too restrictive when such work may still be necessary for caregiving.