IL HB4403

Creates a nonrefundable income tax credit for individual taxpayers equal to 100% of state and federal income, estate, and gift taxes incurred from liquidating assets to qualify for Medicaid long-term care assistance, effective for taxable years ending on or after December 31, 2024.

Credit applies only in the tax year when assets are liquidated and spent down to Medicaid asset limits and the taxpayer enters or remains in a nursing home or supportive living facility while meeting Medicaid qualifications.

Credit does not apply if the taxpayer's spouse is entitled to the Community Spouse Maintenance Needs Allowance.

Any excess credit that exceeds tax liability may be carried forward and applied to tax liabilities for up to 5 subsequent taxable years, with earlier credits applied first.

Credit cannot reduce tax liability below zero and is exempt from Section 250 limitations.