IL HB4822

Creates an income tax credit for foster care expenses up to $1,000 per taxable year for taxpayers who are legal guardians of qualifying dependent children in Illinois.

Requires taxpayer to be under contract with the Department of Children and Family Services and provide care for at least 6 months during the taxable year to receive the full credit.

Allows prorated credit calculated by multiplying the lesser of actual expenses or $1,000 by a fraction representing the number of days of care divided by 365 for care periods under 6 months.

Permits unused credits exceeding tax liability to be carried forward and applied to tax liability in the 5 following taxable years, with earlier year credits applied first.

Applies to taxable years beginning January 1, 2022 and takes effect immediately upon enactment.