IL HB3685

Creates an income tax credit for foster care expenses up to $1,000 per qualifying dependent child per taxable year for taxpayers under contract with the Department of Children and Family Services.

Taxpayers must provide care for at least 6 months during the taxable year to claim the full $1,000 credit; those providing care for less than 6 months receive a prorated credit based on the number of days of care divided by 365.

Excess credits that exceed tax liability may be carried forward and applied to tax liability for the 5 following taxable years, with earlier credits applied first.

Applies to taxable years beginning January 1, 2023 and later, with a "qualifying dependent child" defined as an Illinois resident in the custody of the Department of Children and Family Services who is the taxpayer's foster child.

The Department of Children and Family Services and Department of Revenue shall adopt necessary rules to implement the credit, which takes effect immediately upon becoming law.