Illinois2026Active
HB0013
Illinois Foster Care Tax Credit
Last scannedAug 24, 2026, 10:00 AM
In one sentence
This law creates a new tax credit for Illinois foster parents who pay expenses to care for children in the state's custody.
What it does
- Creates an income tax credit equal to foster care expenses, up to $1,000 per child each year.
- Requires taxpayers to be under contract with the Department of Children and Family Services (DCFS) and provide care for at least 6 months in a taxable year to receive the full credit.
- Prorates the credit amount based on the number of days of care if the placement lasts less than 6 months during the taxable year.
- Allows taxpayers to carry forward any unused credit to offset taxes for up to five future years, applying it first to the earliest year with a tax liability.
Who it affects
- Illinois residents who are foster parents under contract with DCFS caring for qualifying dependent children.
- The Department of Children and Family Services (DCFS) and the Department of Revenue, which must work together to create rules for the program.
Limits and unknowns
- The credit cannot reduce a taxpayer's bill below zero.
- Specific rules for how the program works will be written by state agencies after the law takes effect.
- The law does not list specific types of expenses that count toward the $1,000 limit.
Plain language
Terms to know
- Tax Credit
- An amount that reduces the total tax a person owes dollar for dollar.
- Prorated
- Adjusted based on how many days of care were provided during the year if the child was cared for less than 6 months.
- Carry Forward
- Using an unused tax benefit from one year to lower taxes in future years, up to five years later.
Official record
Sources
Official summary
INC TX-ADOPTION