HB3981 Summary

• Creates an income tax credit for taxpayers who are eligible caregivers of veterans with service-connected disabilities under the Illinois Income Tax Act.

• Credit equals 5% of costs incurred in caring for the veteran, capped at $1,000 per taxable year, effective for tax years ending on or after December 31, 2021.

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

• Defines "eligible caregiver" as a family member or paid worker who provides care and assists with activities of daily living for a qualified veteran.

• Allows excess credits exceeding tax liability to be carried forward and applied to tax liability in the following 5 taxable years, with earlier credits applied first.