HB3013 would amend the Illinois Income Tax Act to create a new state income tax credit for foster care expenses paid or incurred by a taxpayer for a qualifying dependent child. The credit would equal the taxpayer’s foster care expenses, up to $1,000 per taxable year, and could be prorated when the taxpayer provides foster care for less than six months during the year. A taxpayer may claim the credit beginning with tax years on or after January 1, 2025, including in the year the foster parent becomes the child’s legal guardian.
The bill also makes the credit refundable for taxpayers with federal adjusted gross income of $50,000 or less. For taxpayers above that income threshold, any excess credit would carry forward for up to five years. The Department of Children and Family Services and the Department of Revenue would be required to adopt rules to implement the credit, and the measure would take effect immediately upon becoming law.
Impact
The bill would add a new Section 246 to the Illinois Income Tax Act, creating a targeted tax benefit for foster parents caring for children in DCFS custody. It would reduce state income tax liability for eligible taxpayers, provide refunds for lower-income households, and establish carryforward rules for higher-income taxpayers. It also directs DCFS and the Department of Revenue to promulgate implementing rules and exempts the section from Section 250 of the Act.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the measure appears to be framed as a supportive, family-focused tax relief proposal for foster parents. The caption and structure suggest a generally positive intent to offset out-of-pocket foster care costs and encourage continued caregiving. No formal opposition, amendments, or recorded vote history is available in the provided materials.
Contention
The main policy questions raised by the bill are likely to concern fiscal cost, eligibility design, and administration. The $1,000 cap, the six-month service requirement for a full credit, and the $50,000 income threshold for refundability create distinctions among foster parents that could be debated as either appropriately targeted or too narrow. Another possible point of contention is whether the credit should be refundable for a broader set of taxpayers, and how DCFS and the Department of Revenue would verify qualifying expenses and caregiving status.