IL HB1900

Creates a nonrefundable income tax credit for unpaid caregivers who incur out-of-pocket expenses caring for an eligible related person, covering up to 100% of eligible expenditures with a maximum of $500 per caregiver per year

Eligible related persons must be at least 50 years old, Illinois residents, require assistance with at least one activity of daily living as certified by a licensed health care provider, and be related to or have a close association with the caregiver (including friends or neighbors)

Eligible expenditures include home modifications for safety and mobility, certified medical equipment, hiring home care aides, respite care, adult day health services, transportation, and assistive technology

Income limits apply: caregivers must have federal adjusted gross income under $75,000 (individual) or $150,000 (joint filers) to qualify; taxpayers must apply through the Department on Aging for a certificate of credit

Total credits awarded statewide are capped at $1,000,000 per calendar year on a first-come, first-served basis; the credit takes effect for taxable years beginning January 1, 2026, with excess credits carrying forward up to 5 years