93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5906


 
Introduced 2/6/2004, by John E. Bradley
 
SYNOPSIS AS INTRODUCED:
 		













5 ILCS 5/216 new










    Amends the Illinois Income Tax Act.  Provides that, for 5 taxable years, each individual taxpayer is entitled to an income tax credit in the amount of 50% of the amount spent by the taxpayer in the taxable year for long-term care insurance premiums.  Provides that the tax credit may not reduce the taxpayer's liability to less than zero but may be carried forward for 5 taxable years.  Effective immediately.
















LRB093 16207 SJM 41840 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB5906

LRB093 16207 SJM 41840 b






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    AN ACT concerning  taxes.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Illinois Income Tax Act is amended  by adding 
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Section 216 as follows:
 
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    (5 ILCS 5/216  new)
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    Sec. 216.   Long-term care insurance tax credit.

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    (a) For taxable years ending on or after December 31, 2004 
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and ending on or before December 30, 2009, each individual 
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taxpayer is entitled to a credit against the tax imposed by 
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subsections (a) and (b) of Section 201 in the amount of 50% of 
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the amount spent by the taxpayer in the taxable year for 
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long-term care insurance premiums.  The tax credit may not 
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reduce the taxpayer's liability to less than zero.
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    (b) If the amount of the credit exceeds the tax liability 
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for the year, the excess may be carried forward and applied to 
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the tax liability of the 5 taxable years following the excess 
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credit year.  The credit shall be applied to the earliest year 
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for which there is a tax liability.  If there are credits from 
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more than one tax year that are available to offset a 
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liability, the earlier credit shall be applied first.
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    (c) For purposes of this Section, "long-term care insurance 
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premium" means the amount paid during a taxable year for any 
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qualified long-term care insurance  contract, as defined in 
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Section 7702B(b) of the Internal Revenue Code, covering an 
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individual.

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.