IL HB5314

Creates a tax credit for individual taxpayers who adopt a child during the taxable year, beginning January 1, 2014, equal to nonrecurring adoption expenses up to a maximum of $4,000 per child.

Defines nonrecurring adoption expenses as reasonable and necessary adoption fees, court costs, attorney fees, and expenses directly related to the legal adoption process, including adoption studies, health examinations, supervision costs, and transportation and lodging for the child or adoptive parents.

Allows unused credits to be carried forward and applied to tax liability in the 5 taxable years following the year the excess credit was generated, with earlier credits applied first.

Limits eligibility to children under age 18 who are adopted in Illinois or placed for adoption from Illinois.

Exempts this credit from the automatic sunset provision in Section 250 of the Illinois Income Tax Act, making it permanent.