IL HB0583

Creates an income tax credit for eligible caregivers of veterans with service-connected disabilities equal to 5% of costs incurred in caring for the veteran, capped at $1,000 per taxable year.

Applies to taxable years ending on or after December 31, 2021 and reduces tax liability under Illinois income tax subsections (a) and (b) of Section 201.

Defines "costs incurred" to include respite care, counseling, caregiver training, travel costs, assistive technology, and medical or hygiene items used by the veteran.

Allows excess credits exceeding tax liability to be carried forward for up to 5 subsequent taxable years, applied first to the earliest year with tax liability.

Defines eligible caregiver as a family member or paid worker who provides care and assists with activities of daily living for a qualified veteran with disabilities certified by the U.S. Department of Veterans Affairs.