INCOME TAX-CAREGIVER CREDIT
This bill, if enacted, will directly affect the state's tax law by granting specific caregiving expenses a tax credit. Among the eligible expenses are costs for home modifications to aid the mobility and independence of the caregiver's family member, the acquisition of certified equipment for daily living activities, and payments for various services such as home care or respite care. The bill benefits families caring for individuals who are at least 18 years old and qualify as dependents, emphasizing the state's commitment to supporting caregiving within families, particularly for those facing financial limitations.
House Bill 1376 introduces a provision within the Illinois Income Tax Act that establishes a nonrefundable tax credit for taxpayers who serve as family caregivers. These caregivers are eligible to receive a credit equal to 100% of their eligible expenditures incurred during the taxable year for caring for an eligible family member. This tax credit aims to mitigate the financial burden associated with caregiving and promote support for families in need of assistance for their loved ones. The eligibility criteria include family caregivers with an adjusted gross income below specified thresholds, ensuring that those with the greatest financial need benefit most significantly from this measure.
The implementation of HB 1376 may lead to discussions regarding the long-term fiscal implications of extending such tax credits. Proponents argue that supporting family caregivers can alleviate strain on public health systems and improve quality of life for individuals needing care. However, some lawmakers may express concerns about the potential impact on state revenue and whether sufficient fiscal safeguards accompany such credits. Additionally, proper tracking and verification of eligible expenses will be crucial to ensure that the credit system operates effectively without abuse, necessitating the establishment of rules by the Department on Aging and possibly controversial regulatory discussions.