Foster parents could claim a tax credit for care expenses

Foster parents could claim a tax credit for care expenses. The child must live in Illinois, be in the custody of the Department of Children and Family Services, and be the foster child of the taxpayer seeking the credit. The parent must have a contract with the Department of Children and Family Services and care for the child for at least six months to receive the full credit. For less than six months, the credit is reduced based on the days of care. The credit cannot reduce tax owed below zero. If income is $50,000 or less, excess credit is refundable; if income is $50,000 or more, it carries forward for up to five tax years. The text includes exactly $50,000 in both rules. The credit would apply to tax years starting on or after January 1, 2025. It could be claimed for the year the parent becomes the child's legal guardian. The Act would take effect upon becoming law.