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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The 21st Century Workforce Development Fund Act | ||||||||||||||||||||||||||||
5 | is amended by changing Section 15 as follows:
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6 | (30 ILCS 787/15)
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7 | Sec. 15. Use of Fund. | ||||||||||||||||||||||||||||
8 | (a) Role of Fund. Subject to appropriation, resources from | ||||||||||||||||||||||||||||
9 | the Fund are intended to be used flexibly to support innovative | ||||||||||||||||||||||||||||
10 | and locally-driven strategies, to leverage other funding | ||||||||||||||||||||||||||||
11 | sources, and to fill gaps in existing workforce development | ||||||||||||||||||||||||||||
12 | resources in Illinois. They are not intended to supplant | ||||||||||||||||||||||||||||
13 | existing workforce development resources. | ||||||||||||||||||||||||||||
14 | (b) Distribution of funds. Funds shall be distributed | ||||||||||||||||||||||||||||
15 | through competitive grantmaking processes administered by the | ||||||||||||||||||||||||||||
16 | Department and overseen by the Advisory Committee. No more than | ||||||||||||||||||||||||||||
17 | 6% of funds used for grants may be retained by the Department | ||||||||||||||||||||||||||||
18 | for administrative costs or for program evaluation or technical | ||||||||||||||||||||||||||||
19 | assistance activities. | ||||||||||||||||||||||||||||
20 | (c) Grantmaking. The Department must administer funds | ||||||||||||||||||||||||||||
21 | through competitive grantmaking in accordance with the | ||||||||||||||||||||||||||||
22 | priorities described in this Act. Grantmaking must be used to | ||||||||||||||||||||||||||||
23 | support workforce development strategies consistent with the |
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1 | priorities outlined in this Act. Strategies may include, but | ||||||
2 | are not limited to the following: | ||||||
3 | (i) Expanded grantmaking for existing State workforce | ||||||
4 | development strategies, including the Job Training and | ||||||
5 | Economic Development Program and programs designed to | ||||||
6 | increase the number of persons traditionally | ||||||
7 | underrepresented in the building trades, specifically | ||||||
8 | minorities and women. | ||||||
9 | (ii) Workforce development initiatives that help the | ||||||
10 | least skilled adults access employment and education | ||||||
11 | opportunities, including transitional jobs programs and | ||||||
12 | educational bridge programming that integrate basic | ||||||
13 | education and occupational skills training. | ||||||
14 | (iii) Sectoral strategies that develop | ||||||
15 | industry-specific workforce education and training | ||||||
16 | services that lead to existing or expected jobs with | ||||||
17 | identified employers and that include services to ensure | ||||||
18 | that low-income, low-skilled adults can be served. | ||||||
19 | (iv) Support for the development and implementation of | ||||||
20 | workforce education and training programs in the energy | ||||||
21 | efficiency, renewable energy, and pollution control | ||||||
22 | cleanup and prevention industries. | ||||||
23 | (v) Support for planning activities that: ensure that | ||||||
24 | workforce development and education needs of low-skilled | ||||||
25 | adults are integrated into industry-specific career | ||||||
26 | pathways; analyze labor market data to track workforce |
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1 | trends in the State's energy-related initiatives; or | ||||||
2 | increase the capacity of communities to provide workforce | ||||||
3 | services to low-income, low-skilled adults.
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4 | (d) Allowable expenditures. Grant funds are limited to | ||||||
5 | expenditures for the following: | ||||||
6 | (i) Basic skills training, adult education, | ||||||
7 | occupational training, job readiness training, and | ||||||
8 | soft-skills training for which financial aid is otherwise | ||||||
9 | not available.
| ||||||
10 | (ii) Workforce development-related services including | ||||||
11 | mentoring, job development, support services, | ||||||
12 | transportation assistance, and wage subsidies, that are | ||||||
13 | tied to participation in training and employment.
| ||||||
14 | (iii) Capacity building, program development, and | ||||||
15 | technical assistance activities necessary for the | ||||||
16 | development and implementation of new workforce education | ||||||
17 | and training strategies.
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18 | No more than 5% of any grant may be used for administrative | ||||||
19 | costs.
| ||||||
20 | (e) Eligible applicants. For grants under this Section, | ||||||
21 | eligible applicants include the following:
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22 | (i) Any private, public, and non-profit entities that | ||||||
23 | provide education, training, and workforce development | ||||||
24 | services to low-income individuals. | ||||||
25 | (ii) Educational institutions. | ||||||
26 | (iii) Labor and business associations.
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1 | (f) The 21st Century Workforce Development Fund is not | ||||||
2 | subject to sweeps, administrative charges or chargebacks, | ||||||
3 | including, but not limited to, those authorized under Section | ||||||
4 | 8h of the State Finance Act, nor any other fiscal or budgetary | ||||||
5 | maneuver that would in any way transfer any funds from the 21st | ||||||
6 | Century Workforce Development Fund into any other fund of the | ||||||
7 | State. | ||||||
8 | (Source: P.A. 96-771, eff. 8-28-09; 97-581, eff. 8-26-11.)
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9 | Section 10. The Illinois Income Tax Act is amended by | ||||||
10 | changing Sections 203 and 901 as follows:
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11 | (35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||||||
12 | Sec. 203. Base income defined. | ||||||
13 | (a) Individuals. | ||||||
14 | (1) In general. In the case of an individual, base | ||||||
15 | income means an
amount equal to the taxpayer's adjusted | ||||||
16 | gross income for the taxable
year as modified by paragraph | ||||||
17 | (2). | ||||||
18 | (2) Modifications. The adjusted gross income referred | ||||||
19 | to in
paragraph (1) shall be modified by adding thereto the | ||||||
20 | sum of the
following amounts: | ||||||
21 | (A) An amount equal to all amounts paid or accrued | ||||||
22 | to the taxpayer
as interest or dividends during the | ||||||
23 | taxable year to the extent excluded
from gross income | ||||||
24 | in the computation of adjusted gross income, except |
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| |||||||
1 | stock
dividends of qualified public utilities | ||||||
2 | described in Section 305(e) of the
Internal Revenue | ||||||
3 | Code; | ||||||
4 | (B) An amount equal to the amount of tax imposed by | ||||||
5 | this Act to the
extent deducted from gross income in | ||||||
6 | the computation of adjusted gross
income for the | ||||||
7 | taxable year; | ||||||
8 | (C) An amount equal to the amount received during | ||||||
9 | the taxable year
as a recovery or refund of real | ||||||
10 | property taxes paid with respect to the
taxpayer's | ||||||
11 | principal residence under the Revenue Act of
1939 and | ||||||
12 | for which a deduction was previously taken under | ||||||
13 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
14 | 1991, the retrospective application date of
Article 4 | ||||||
15 | of Public Act 87-17. In the case of multi-unit or | ||||||
16 | multi-use
structures and farm dwellings, the taxes on | ||||||
17 | the taxpayer's principal residence
shall be that | ||||||
18 | portion of the total taxes for the entire property | ||||||
19 | which is
attributable to such principal residence; | ||||||
20 | (D) An amount equal to the amount of the capital | ||||||
21 | gain deduction
allowable under the Internal Revenue | ||||||
22 | Code, to the extent deducted from gross
income in the | ||||||
23 | computation of adjusted gross income; | ||||||
24 | (D-5) An amount, to the extent not included in | ||||||
25 | adjusted gross income,
equal to the amount of money | ||||||
26 | withdrawn by the taxpayer in the taxable year from
a |
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| |||||||
1 | medical care savings account and the interest earned on | ||||||
2 | the account in the
taxable year of a withdrawal | ||||||
3 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
4 | Care Savings Account Act or subsection (b) of Section | ||||||
5 | 20 of the
Medical Care Savings Account Act of 2000; | ||||||
6 | (D-10) For taxable years ending after December 31, | ||||||
7 | 1997, an
amount equal to any eligible remediation costs | ||||||
8 | that the individual
deducted in computing adjusted | ||||||
9 | gross income and for which the
individual claims a | ||||||
10 | credit under subsection (l) of Section 201; | ||||||
11 | (D-15) For taxable years 2001 and thereafter, an | ||||||
12 | amount equal to the
bonus depreciation deduction taken | ||||||
13 | on the taxpayer's federal income tax return for the | ||||||
14 | taxable
year under subsection (k) of Section 168 of the | ||||||
15 | Internal Revenue Code; | ||||||
16 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
17 | or otherwise disposes of property for which the | ||||||
18 | taxpayer was required in any taxable year to
make an | ||||||
19 | addition modification under subparagraph (D-15), then | ||||||
20 | an amount equal
to the aggregate amount of the | ||||||
21 | deductions taken in all taxable
years under | ||||||
22 | subparagraph (Z) with respect to that property. | ||||||
23 | If the taxpayer continues to own property through | ||||||
24 | the last day of the last tax year for which the | ||||||
25 | taxpayer may claim a depreciation deduction for | ||||||
26 | federal income tax purposes and for which the taxpayer |
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| |||||||
1 | was allowed in any taxable year to make a subtraction | ||||||
2 | modification under subparagraph (Z), then an amount | ||||||
3 | equal to that subtraction modification.
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4 | The taxpayer is required to make the addition | ||||||
5 | modification under this
subparagraph
only once with | ||||||
6 | respect to any one piece of property; | ||||||
7 | (D-17) An amount equal to the amount otherwise | ||||||
8 | allowed as a deduction in computing base income for | ||||||
9 | interest paid, accrued, or incurred, directly or | ||||||
10 | indirectly, (i) for taxable years ending on or after | ||||||
11 | December 31, 2004, to a foreign person who would be a | ||||||
12 | member of the same unitary business group but for the | ||||||
13 | fact that foreign person's business activity outside | ||||||
14 | the United States is 80% or more of the foreign | ||||||
15 | person's total business activity and (ii) for taxable | ||||||
16 | years ending on or after December 31, 2008, to a person | ||||||
17 | who would be a member of the same unitary business | ||||||
18 | group but for the fact that the person is prohibited | ||||||
19 | under Section 1501(a)(27) from being included in the | ||||||
20 | unitary business group because he or she is ordinarily | ||||||
21 | required to apportion business income under different | ||||||
22 | subsections of Section 304. The addition modification | ||||||
23 | required by this subparagraph shall be reduced to the | ||||||
24 | extent that dividends were included in base income of | ||||||
25 | the unitary group for the same taxable year and | ||||||
26 | received by the taxpayer or by a member of the |
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1 | taxpayer's unitary business group (including amounts | ||||||
2 | included in gross income under Sections 951 through 964 | ||||||
3 | of the Internal Revenue Code and amounts included in | ||||||
4 | gross income under Section 78 of the Internal Revenue | ||||||
5 | Code) with respect to the stock of the same person to | ||||||
6 | whom the interest was paid, accrued, or incurred. | ||||||
7 | This paragraph shall not apply to the following:
| ||||||
8 | (i) an item of interest paid, accrued, or | ||||||
9 | incurred, directly or indirectly, to a person who | ||||||
10 | is subject in a foreign country or state, other | ||||||
11 | than a state which requires mandatory unitary | ||||||
12 | reporting, to a tax on or measured by net income | ||||||
13 | with respect to such interest; or | ||||||
14 | (ii) an item of interest paid, accrued, or | ||||||
15 | incurred, directly or indirectly, to a person if | ||||||
16 | the taxpayer can establish, based on a | ||||||
17 | preponderance of the evidence, both of the | ||||||
18 | following: | ||||||
19 | (a) the person, during the same taxable | ||||||
20 | year, paid, accrued, or incurred, the interest | ||||||
21 | to a person that is not a related member, and | ||||||
22 | (b) the transaction giving rise to the | ||||||
23 | interest expense between the taxpayer and the | ||||||
24 | person did not have as a principal purpose the | ||||||
25 | avoidance of Illinois income tax, and is paid | ||||||
26 | pursuant to a contract or agreement that |
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1 | reflects an arm's-length interest rate and | ||||||
2 | terms; or
| ||||||
3 | (iii) the taxpayer can establish, based on | ||||||
4 | clear and convincing evidence, that the interest | ||||||
5 | paid, accrued, or incurred relates to a contract or | ||||||
6 | agreement entered into at arm's-length rates and | ||||||
7 | terms and the principal purpose for the payment is | ||||||
8 | not federal or Illinois tax avoidance; or
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9 | (iv) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person if | ||||||
11 | the taxpayer establishes by clear and convincing | ||||||
12 | evidence that the adjustments are unreasonable; or | ||||||
13 | if the taxpayer and the Director agree in writing | ||||||
14 | to the application or use of an alternative method | ||||||
15 | of apportionment under Section 304(f).
| ||||||
16 | Nothing in this subsection shall preclude the | ||||||
17 | Director from making any other adjustment | ||||||
18 | otherwise allowed under Section 404 of this Act for | ||||||
19 | any tax year beginning after the effective date of | ||||||
20 | this amendment provided such adjustment is made | ||||||
21 | pursuant to regulation adopted by the Department | ||||||
22 | and such regulations provide methods and standards | ||||||
23 | by which the Department will utilize its authority | ||||||
24 | under Section 404 of this Act;
| ||||||
25 | (D-18) An amount equal to the amount of intangible | ||||||
26 | expenses and costs otherwise allowed as a deduction in |
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| |||||||
1 | computing base income, and that were paid, accrued, or | ||||||
2 | incurred, directly or indirectly, (i) for taxable | ||||||
3 | years ending on or after December 31, 2004, to a | ||||||
4 | foreign person who would be a member of the same | ||||||
5 | unitary business group but for the fact that the | ||||||
6 | foreign person's business activity outside the United | ||||||
7 | States is 80% or more of that person's total business | ||||||
8 | activity and (ii) for taxable years ending on or after | ||||||
9 | December 31, 2008, to a person who would be a member of | ||||||
10 | the same unitary business group but for the fact that | ||||||
11 | the person is prohibited under Section 1501(a)(27) | ||||||
12 | from being included in the unitary business group | ||||||
13 | because he or she is ordinarily required to apportion | ||||||
14 | business income under different subsections of Section | ||||||
15 | 304. The addition modification required by this | ||||||
16 | subparagraph shall be reduced to the extent that | ||||||
17 | dividends were included in base income of the unitary | ||||||
18 | group for the same taxable year and received by the | ||||||
19 | taxpayer or by a member of the taxpayer's unitary | ||||||
20 | business group (including amounts included in gross | ||||||
21 | income under Sections 951 through 964 of the Internal | ||||||
22 | Revenue Code and amounts included in gross income under | ||||||
23 | Section 78 of the Internal Revenue Code) with respect | ||||||
24 | to the stock of the same person to whom the intangible | ||||||
25 | expenses and costs were directly or indirectly paid, | ||||||
26 | incurred, or accrued. The preceding sentence does not |
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1 | apply to the extent that the same dividends caused a | ||||||
2 | reduction to the addition modification required under | ||||||
3 | Section 203(a)(2)(D-17) of this Act. As used in this | ||||||
4 | subparagraph, the term "intangible expenses and costs" | ||||||
5 | includes (1) expenses, losses, and costs for, or | ||||||
6 | related to, the direct or indirect acquisition, use, | ||||||
7 | maintenance or management, ownership, sale, exchange, | ||||||
8 | or any other disposition of intangible property; (2) | ||||||
9 | losses incurred, directly or indirectly, from | ||||||
10 | factoring transactions or discounting transactions; | ||||||
11 | (3) royalty, patent, technical, and copyright fees; | ||||||
12 | (4) licensing fees; and (5) other similar expenses and | ||||||
13 | costs.
For purposes of this subparagraph, "intangible | ||||||
14 | property" includes patents, patent applications, trade | ||||||
15 | names, trademarks, service marks, copyrights, mask | ||||||
16 | works, trade secrets, and similar types of intangible | ||||||
17 | assets. | ||||||
18 | This paragraph shall not apply to the following: | ||||||
19 | (i) any item of intangible expenses or costs | ||||||
20 | paid, accrued, or incurred, directly or | ||||||
21 | indirectly, from a transaction with a person who is | ||||||
22 | subject in a foreign country or state, other than a | ||||||
23 | state which requires mandatory unitary reporting, | ||||||
24 | to a tax on or measured by net income with respect | ||||||
25 | to such item; or | ||||||
26 | (ii) any item of intangible expense or cost |
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| |||||||
1 | paid, accrued, or incurred, directly or | ||||||
2 | indirectly, if the taxpayer can establish, based | ||||||
3 | on a preponderance of the evidence, both of the | ||||||
4 | following: | ||||||
5 | (a) the person during the same taxable | ||||||
6 | year paid, accrued, or incurred, the | ||||||
7 | intangible expense or cost to a person that is | ||||||
8 | not a related member, and | ||||||
9 | (b) the transaction giving rise to the | ||||||
10 | intangible expense or cost between the | ||||||
11 | taxpayer and the person did not have as a | ||||||
12 | principal purpose the avoidance of Illinois | ||||||
13 | income tax, and is paid pursuant to a contract | ||||||
14 | or agreement that reflects arm's-length terms; | ||||||
15 | or | ||||||
16 | (iii) any item of intangible expense or cost | ||||||
17 | paid, accrued, or incurred, directly or | ||||||
18 | indirectly, from a transaction with a person if the | ||||||
19 | taxpayer establishes by clear and convincing | ||||||
20 | evidence, that the adjustments are unreasonable; | ||||||
21 | or if the taxpayer and the Director agree in | ||||||
22 | writing to the application or use of an alternative | ||||||
23 | method of apportionment under Section 304(f);
| ||||||
24 | Nothing in this subsection shall preclude the | ||||||
25 | Director from making any other adjustment | ||||||
26 | otherwise allowed under Section 404 of this Act for |
| |||||||
| |||||||
1 | any tax year beginning after the effective date of | ||||||
2 | this amendment provided such adjustment is made | ||||||
3 | pursuant to regulation adopted by the Department | ||||||
4 | and such regulations provide methods and standards | ||||||
5 | by which the Department will utilize its authority | ||||||
6 | under Section 404 of this Act;
| ||||||
7 | (D-19) For taxable years ending on or after | ||||||
8 | December 31, 2008, an amount equal to the amount of | ||||||
9 | insurance premium expenses and costs otherwise allowed | ||||||
10 | as a deduction in computing base income, and that were | ||||||
11 | paid, accrued, or incurred, directly or indirectly, to | ||||||
12 | a person who would be a member of the same unitary | ||||||
13 | business group but for the fact that the person is | ||||||
14 | prohibited under Section 1501(a)(27) from being | ||||||
15 | included in the unitary business group because he or | ||||||
16 | she is ordinarily required to apportion business | ||||||
17 | income under different subsections of Section 304. The | ||||||
18 | addition modification required by this subparagraph | ||||||
19 | shall be reduced to the extent that dividends were | ||||||
20 | included in base income of the unitary group for the | ||||||
21 | same taxable year and received by the taxpayer or by a | ||||||
22 | member of the taxpayer's unitary business group | ||||||
23 | (including amounts included in gross income under | ||||||
24 | Sections 951 through 964 of the Internal Revenue Code | ||||||
25 | and amounts included in gross income under Section 78 | ||||||
26 | of the Internal Revenue Code) with respect to the stock |
| |||||||
| |||||||
1 | of the same person to whom the premiums and costs were | ||||||
2 | directly or indirectly paid, incurred, or accrued. The | ||||||
3 | preceding sentence does not apply to the extent that | ||||||
4 | the same dividends caused a reduction to the addition | ||||||
5 | modification required under Section 203(a)(2)(D-17) or | ||||||
6 | Section 203(a)(2)(D-18) of this Act.
| ||||||
7 | (D-20) For taxable years beginning on or after | ||||||
8 | January 1,
2002 and ending on or before December 31, | ||||||
9 | 2006, in
the
case of a distribution from a qualified | ||||||
10 | tuition program under Section 529 of
the Internal | ||||||
11 | Revenue Code, other than (i) a distribution from a | ||||||
12 | College Savings
Pool created under Section 16.5 of the | ||||||
13 | State Treasurer Act or (ii) a
distribution from the | ||||||
14 | Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||||||
15 | the amount excluded from gross income under Section | ||||||
16 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
17 | January 1, 2007, in the case of a distribution from a | ||||||
18 | qualified tuition program under Section 529 of the | ||||||
19 | Internal Revenue Code, other than (i) a distribution | ||||||
20 | from a College Savings Pool created under Section 16.5 | ||||||
21 | of the State Treasurer Act, (ii) a distribution from | ||||||
22 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
23 | distribution from a qualified tuition program under | ||||||
24 | Section 529 of the Internal Revenue Code that (I) | ||||||
25 | adopts and determines that its offering materials | ||||||
26 | comply with the College Savings Plans Network's |
| |||||||
| |||||||
1 | disclosure principles and (II) has made reasonable | ||||||
2 | efforts to inform in-state residents of the existence | ||||||
3 | of in-state qualified tuition programs by informing | ||||||
4 | Illinois residents directly and, where applicable, to | ||||||
5 | inform financial intermediaries distributing the | ||||||
6 | program to inform in-state residents of the existence | ||||||
7 | of in-state qualified tuition programs at least | ||||||
8 | annually, an amount equal to the amount excluded from | ||||||
9 | gross income under Section 529(c)(3)(B). | ||||||
10 | For the purposes of this subparagraph (D-20), a | ||||||
11 | qualified tuition program has made reasonable efforts | ||||||
12 | if it makes disclosures (which may use the term | ||||||
13 | "in-state program" or "in-state plan" and need not | ||||||
14 | specifically refer to Illinois or its qualified | ||||||
15 | programs by name) (i) directly to prospective | ||||||
16 | participants in its offering materials or makes a | ||||||
17 | public disclosure, such as a website posting; and (ii) | ||||||
18 | where applicable, to intermediaries selling the | ||||||
19 | out-of-state program in the same manner that the | ||||||
20 | out-of-state program distributes its offering | ||||||
21 | materials; | ||||||
22 | (D-21) For taxable years beginning on or after | ||||||
23 | January 1, 2007, in the case of transfer of moneys from | ||||||
24 | a qualified tuition program under Section 529 of the | ||||||
25 | Internal Revenue Code that is administered by the State | ||||||
26 | to an out-of-state program, an amount equal to the |
| |||||||
| |||||||
1 | amount of moneys previously deducted from base income | ||||||
2 | under subsection (a)(2)(Y) of this Section; | ||||||
3 | (D-22) For taxable years beginning on or after | ||||||
4 | January 1, 2009, in the case of a nonqualified | ||||||
5 | withdrawal or refund of moneys from a qualified tuition | ||||||
6 | program under Section 529 of the Internal Revenue Code | ||||||
7 | administered by the State that is not used for | ||||||
8 | qualified expenses at an eligible education | ||||||
9 | institution, an amount equal to the contribution | ||||||
10 | component of the nonqualified withdrawal or refund | ||||||
11 | that was previously deducted from base income under | ||||||
12 | subsection (a)(2)(y) of this Section, provided that | ||||||
13 | the withdrawal or refund did not result from the | ||||||
14 | beneficiary's death or disability; | ||||||
15 | (D-23) An amount equal to the credit allowable to | ||||||
16 | the taxpayer under Section 218(a) of this Act, | ||||||
17 | determined without regard to Section 218(c) of this | ||||||
18 | Act; | ||||||
19 | and by deducting from the total so obtained the
sum of the | ||||||
20 | following amounts: | ||||||
21 | (E) For taxable years ending before December 31, | ||||||
22 | 2001,
any amount included in such total in respect of | ||||||
23 | any compensation
(including but not limited to any | ||||||
24 | compensation paid or accrued to a
serviceman while a | ||||||
25 | prisoner of war or missing in action) paid to a | ||||||
26 | resident
by reason of being on active duty in the Armed |
| |||||||
| |||||||
1 | Forces of the United States
and in respect of any | ||||||
2 | compensation paid or accrued to a resident who as a
| ||||||
3 | governmental employee was a prisoner of war or missing | ||||||
4 | in action, and in
respect of any compensation paid to a | ||||||
5 | resident in 1971 or thereafter for
annual training | ||||||
6 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
7 | United States Code as a member of the Illinois National | ||||||
8 | Guard or, beginning with taxable years ending on or | ||||||
9 | after December 31, 2007, the National Guard of any | ||||||
10 | other state.
For taxable years ending on or after | ||||||
11 | December 31, 2001, any amount included in
such total in | ||||||
12 | respect of any compensation (including but not limited | ||||||
13 | to any
compensation paid or accrued to a serviceman | ||||||
14 | while a prisoner of war or missing
in action) paid to a | ||||||
15 | resident by reason of being a member of any component | ||||||
16 | of
the Armed Forces of the United States and in respect | ||||||
17 | of any compensation paid
or accrued to a resident who | ||||||
18 | as a governmental employee was a prisoner of war
or | ||||||
19 | missing in action, and in respect of any compensation | ||||||
20 | paid to a resident in
2001 or thereafter by reason of | ||||||
21 | being a member of the Illinois National Guard or, | ||||||
22 | beginning with taxable years ending on or after | ||||||
23 | December 31, 2007, the National Guard of any other | ||||||
24 | state.
The provisions of this subparagraph (E) are | ||||||
25 | exempt
from the provisions of Section 250; | ||||||
26 | (F) An amount equal to all amounts included in such |
| |||||||
| |||||||
1 | total pursuant
to the provisions of Sections 402(a), | ||||||
2 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
3 | Internal Revenue Code, or included in such total as
| ||||||
4 | distributions under the provisions of any retirement | ||||||
5 | or disability plan for
employees of any governmental | ||||||
6 | agency or unit, or retirement payments to
retired | ||||||
7 | partners, which payments are excluded in computing net | ||||||
8 | earnings
from self employment by Section 1402 of the | ||||||
9 | Internal Revenue Code and
regulations adopted pursuant | ||||||
10 | thereto; | ||||||
11 | (G) The valuation limitation amount; | ||||||
12 | (H) An amount equal to the amount of any tax | ||||||
13 | imposed by this Act
which was refunded to the taxpayer | ||||||
14 | and included in such total for the
taxable year; | ||||||
15 | (I) An amount equal to all amounts included in such | ||||||
16 | total pursuant
to the provisions of Section 111 of the | ||||||
17 | Internal Revenue Code as a
recovery of items previously | ||||||
18 | deducted from adjusted gross income in the
computation | ||||||
19 | of taxable income; | ||||||
20 | (J) An amount equal to those dividends included in | ||||||
21 | such total which were
paid by a corporation which | ||||||
22 | conducts business operations in a River Edge | ||||||
23 | Redevelopment Zone or zones created under the River | ||||||
24 | Edge Redevelopment Zone Act, and conducts
| ||||||
25 | substantially all of its operations in a River Edge | ||||||
26 | Redevelopment Zone or zones. This subparagraph (J) is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 250; | ||||||
2 | (K) An amount equal to those dividends included in | ||||||
3 | such total that
were paid by a corporation that | ||||||
4 | conducts business operations in a federally
designated | ||||||
5 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
6 | High Impact
Business located in Illinois; provided | ||||||
7 | that dividends eligible for the
deduction provided in | ||||||
8 | subparagraph (J) of paragraph (2) of this subsection
| ||||||
9 | shall not be eligible for the deduction provided under | ||||||
10 | this subparagraph
(K); | ||||||
11 | (L) For taxable years ending after December 31, | ||||||
12 | 1983, an amount equal to
all social security benefits | ||||||
13 | and railroad retirement benefits included in
such | ||||||
14 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
15 | Revenue Code; | ||||||
16 | (M) With the exception of any amounts subtracted | ||||||
17 | under subparagraph
(N), an amount equal to the sum of | ||||||
18 | all amounts disallowed as
deductions by (i) Sections | ||||||
19 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
20 | and all amounts of expenses allocable
to interest and | ||||||
21 | disallowed as deductions by Section 265(1) of the | ||||||
22 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
23 | ending on or after August 13, 1999, Sections 171(a)(2), | ||||||
24 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
25 | Code, plus, for taxable years ending on or after | ||||||
26 | December 31, 2011, Section 45G(e)(3) of the Internal |
| |||||||
| |||||||
1 | Revenue Code and, for taxable years ending on or after | ||||||
2 | December 31, 2008, any amount included in gross income | ||||||
3 | under Section 87 of the Internal Revenue Code; the | ||||||
4 | provisions of this
subparagraph are exempt from the | ||||||
5 | provisions of Section 250; | ||||||
6 | (N) An amount equal to all amounts included in such | ||||||
7 | total which are
exempt from taxation by this State | ||||||
8 | either by reason of its statutes or
Constitution
or by | ||||||
9 | reason of the Constitution, treaties or statutes of the | ||||||
10 | United States;
provided that, in the case of any | ||||||
11 | statute of this State that exempts income
derived from | ||||||
12 | bonds or other obligations from the tax imposed under | ||||||
13 | this Act,
the amount exempted shall be the interest net | ||||||
14 | of bond premium amortization; | ||||||
15 | (O) An amount equal to any contribution made to a | ||||||
16 | job training
project established pursuant to the Tax | ||||||
17 | Increment Allocation Redevelopment Act; | ||||||
18 | (P) An amount equal to the amount of the deduction | ||||||
19 | used to compute the
federal income tax credit for | ||||||
20 | restoration of substantial amounts held under
claim of | ||||||
21 | right for the taxable year pursuant to Section 1341 of | ||||||
22 | the
Internal Revenue Code or of any itemized deduction | ||||||
23 | taken from adjusted gross income in the computation of | ||||||
24 | taxable income for restoration of substantial amounts | ||||||
25 | held under claim of right for the taxable year; | ||||||
26 | (Q) An amount equal to any amounts included in such |
| |||||||
| |||||||
1 | total, received by
the taxpayer as an acceleration in | ||||||
2 | the payment of life, endowment or annuity
benefits in | ||||||
3 | advance of the time they would otherwise be payable as | ||||||
4 | an indemnity
for a terminal illness; | ||||||
5 | (R) An amount equal to the amount of any federal or | ||||||
6 | State bonus paid
to veterans of the Persian Gulf War; | ||||||
7 | (S) An amount, to the extent included in adjusted | ||||||
8 | gross income, equal
to the amount of a contribution | ||||||
9 | made in the taxable year on behalf of the
taxpayer to a | ||||||
10 | medical care savings account established under the | ||||||
11 | Medical Care
Savings Account Act or the Medical Care | ||||||
12 | Savings Account Act of 2000 to the
extent the | ||||||
13 | contribution is accepted by the account
administrator | ||||||
14 | as provided in that Act; | ||||||
15 | (T) An amount, to the extent included in adjusted | ||||||
16 | gross income, equal to
the amount of interest earned in | ||||||
17 | the taxable year on a medical care savings
account | ||||||
18 | established under the Medical Care Savings Account Act | ||||||
19 | or the Medical
Care Savings Account Act of 2000 on | ||||||
20 | behalf of the
taxpayer, other than interest added | ||||||
21 | pursuant to item (D-5) of this paragraph
(2); | ||||||
22 | (U) For one taxable year beginning on or after | ||||||
23 | January 1,
1994, an
amount equal to the total amount of | ||||||
24 | tax imposed and paid under subsections (a)
and (b) of | ||||||
25 | Section 201 of this Act on grant amounts received by | ||||||
26 | the taxpayer
under the Nursing Home Grant Assistance |
| |||||||
| |||||||
1 | Act during the taxpayer's taxable years
1992 and 1993; | ||||||
2 | (V) Beginning with tax years ending on or after | ||||||
3 | December 31, 1995 and
ending with tax years ending on | ||||||
4 | or before December 31, 2004, an amount equal to
the | ||||||
5 | amount paid by a taxpayer who is a
self-employed | ||||||
6 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
7 | in a Subchapter S corporation for health insurance or | ||||||
8 | long-term
care insurance for that taxpayer or that | ||||||
9 | taxpayer's spouse or dependents, to
the extent that the | ||||||
10 | amount paid for that health insurance or long-term care
| ||||||
11 | insurance may be deducted under Section 213 of the | ||||||
12 | Internal Revenue Code, has not been deducted on the | ||||||
13 | federal income tax return of the taxpayer,
and does not | ||||||
14 | exceed the taxable income attributable to that | ||||||
15 | taxpayer's income,
self-employment income, or | ||||||
16 | Subchapter S corporation income; except that no
| ||||||
17 | deduction shall be allowed under this item (V) if the | ||||||
18 | taxpayer is eligible to
participate in any health | ||||||
19 | insurance or long-term care insurance plan of an
| ||||||
20 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
21 | amount of the health insurance and long-term care | ||||||
22 | insurance
subtracted under this item (V) shall be | ||||||
23 | determined by multiplying total
health insurance and | ||||||
24 | long-term care insurance premiums paid by the taxpayer
| ||||||
25 | times a number that represents the fractional | ||||||
26 | percentage of eligible medical
expenses under Section |
| |||||||
| |||||||
1 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
2 | deducted on the taxpayer's federal income tax return; | ||||||
3 | (W) For taxable years beginning on or after January | ||||||
4 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
5 | gross income
in the taxable year from amounts converted | ||||||
6 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
7 | exempt from the provisions of Section
250; | ||||||
8 | (X) For taxable year 1999 and thereafter, an amount | ||||||
9 | equal to the
amount of any (i) distributions, to the | ||||||
10 | extent includible in gross income for
federal income | ||||||
11 | tax purposes, made to the taxpayer because of his or | ||||||
12 | her status
as a victim of persecution for racial or | ||||||
13 | religious reasons by Nazi Germany or
any other Axis | ||||||
14 | regime or as an heir of the victim and (ii) items
of | ||||||
15 | income, to the extent
includible in gross income for | ||||||
16 | federal income tax purposes, attributable to,
derived | ||||||
17 | from or in any way related to assets stolen from, | ||||||
18 | hidden from, or
otherwise lost to a victim of
| ||||||
19 | persecution for racial or religious reasons by Nazi | ||||||
20 | Germany or any other Axis
regime immediately prior to, | ||||||
21 | during, and immediately after World War II,
including, | ||||||
22 | but
not limited to, interest on the proceeds receivable | ||||||
23 | as insurance
under policies issued to a victim of | ||||||
24 | persecution for racial or religious
reasons
by Nazi | ||||||
25 | Germany or any other Axis regime by European insurance | ||||||
26 | companies
immediately prior to and during World War II;
|
| |||||||
| |||||||
1 | provided, however, this subtraction from federal | ||||||
2 | adjusted gross income does not
apply to assets acquired | ||||||
3 | with such assets or with the proceeds from the sale of
| ||||||
4 | such assets; provided, further, this paragraph shall | ||||||
5 | only apply to a taxpayer
who was the first recipient of | ||||||
6 | such assets after their recovery and who is a
victim of | ||||||
7 | persecution for racial or religious reasons
by Nazi | ||||||
8 | Germany or any other Axis regime or as an heir of the | ||||||
9 | victim. The
amount of and the eligibility for any | ||||||
10 | public assistance, benefit, or
similar entitlement is | ||||||
11 | not affected by the inclusion of items (i) and (ii) of
| ||||||
12 | this paragraph in gross income for federal income tax | ||||||
13 | purposes.
This paragraph is exempt from the provisions | ||||||
14 | of Section 250; | ||||||
15 | (Y) For taxable years beginning on or after January | ||||||
16 | 1, 2002
and ending
on or before December 31, 2004, | ||||||
17 | moneys contributed in the taxable year to a College | ||||||
18 | Savings Pool account under
Section 16.5 of the State | ||||||
19 | Treasurer Act, except that amounts excluded from
gross | ||||||
20 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
21 | Revenue Code
shall not be considered moneys | ||||||
22 | contributed under this subparagraph (Y). For taxable | ||||||
23 | years beginning on or after January 1, 2005, a maximum | ||||||
24 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
25 | College Savings Pool account under Section 16.5 of the
| ||||||
26 | State
Treasurer Act or (ii) the Illinois Prepaid |
| |||||||
| |||||||
1 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
2 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
3 | Internal
Revenue Code shall not be considered moneys | ||||||
4 | contributed under this subparagraph
(Y). For purposes | ||||||
5 | of this subparagraph, contributions made by an | ||||||
6 | employer on behalf of an employee, or matching | ||||||
7 | contributions made by an employee, shall be treated as | ||||||
8 | made by the employee. This
subparagraph (Y) is exempt | ||||||
9 | from the provisions of Section 250; | ||||||
10 | (Z) For taxable years 2001 and thereafter, for the | ||||||
11 | taxable year in
which the bonus depreciation deduction
| ||||||
12 | is taken on the taxpayer's federal income tax return | ||||||
13 | under
subsection (k) of Section 168 of the Internal | ||||||
14 | Revenue Code and for each
applicable taxable year | ||||||
15 | thereafter, an amount equal to "x", where: | ||||||
16 | (1) "y" equals the amount of the depreciation | ||||||
17 | deduction taken for the
taxable year
on the | ||||||
18 | taxpayer's federal income tax return on property | ||||||
19 | for which the bonus
depreciation deduction
was | ||||||
20 | taken in any year under subsection (k) of Section | ||||||
21 | 168 of the Internal
Revenue Code, but not including | ||||||
22 | the bonus depreciation deduction; | ||||||
23 | (2) for taxable years ending on or before | ||||||
24 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
25 | and then divided by 70 (or "y"
multiplied by | ||||||
26 | 0.429); and |
| |||||||
| |||||||
1 | (3) for taxable years ending after December | ||||||
2 | 31, 2005: | ||||||
3 | (i) for property on which a bonus | ||||||
4 | depreciation deduction of 30% of the adjusted | ||||||
5 | basis was taken, "x" equals "y" multiplied by | ||||||
6 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
7 | 0.429); and | ||||||
8 | (ii) for property on which a bonus | ||||||
9 | depreciation deduction of 50% of the adjusted | ||||||
10 | basis was taken, "x" equals "y" multiplied by | ||||||
11 | 1.0. | ||||||
12 | The aggregate amount deducted under this | ||||||
13 | subparagraph in all taxable
years for any one piece of | ||||||
14 | property may not exceed the amount of the bonus
| ||||||
15 | depreciation deduction
taken on that property on the | ||||||
16 | taxpayer's federal income tax return under
subsection | ||||||
17 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
18 | subparagraph (Z) is exempt from the provisions of | ||||||
19 | Section 250; | ||||||
20 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
21 | or otherwise disposes of
property for which the | ||||||
22 | taxpayer was required in any taxable year to make an
| ||||||
23 | addition modification under subparagraph (D-15), then | ||||||
24 | an amount equal to that
addition modification.
| ||||||
25 | If the taxpayer continues to own property through | ||||||
26 | the last day of the last tax year for which the |
| |||||||
| |||||||
1 | taxpayer may claim a depreciation deduction for | ||||||
2 | federal income tax purposes and for which the taxpayer | ||||||
3 | was required in any taxable year to make an addition | ||||||
4 | modification under subparagraph (D-15), then an amount | ||||||
5 | equal to that addition modification.
| ||||||
6 | The taxpayer is allowed to take the deduction under | ||||||
7 | this subparagraph
only once with respect to any one | ||||||
8 | piece of property. | ||||||
9 | This subparagraph (AA) is exempt from the | ||||||
10 | provisions of Section 250; | ||||||
11 | (BB) Any amount included in adjusted gross income, | ||||||
12 | other
than
salary,
received by a driver in a | ||||||
13 | ridesharing arrangement using a motor vehicle; | ||||||
14 | (CC) The amount of (i) any interest income (net of | ||||||
15 | the deductions allocable thereto) taken into account | ||||||
16 | for the taxable year with respect to a transaction with | ||||||
17 | a taxpayer that is required to make an addition | ||||||
18 | modification with respect to such transaction under | ||||||
19 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
20 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
21 | the amount of that addition modification, and
(ii) any | ||||||
22 | income from intangible property (net of the deductions | ||||||
23 | allocable thereto) taken into account for the taxable | ||||||
24 | year with respect to a transaction with a taxpayer that | ||||||
25 | is required to make an addition modification with | ||||||
26 | respect to such transaction under Section |
| |||||||
| |||||||
1 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
2 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
3 | addition modification. This subparagraph (CC) is | ||||||
4 | exempt from the provisions of Section 250; | ||||||
5 | (DD) An amount equal to the interest income taken | ||||||
6 | into account for the taxable year (net of the | ||||||
7 | deductions allocable thereto) with respect to | ||||||
8 | transactions with (i) a foreign person who would be a | ||||||
9 | member of the taxpayer's unitary business group but for | ||||||
10 | the fact that the foreign person's business activity | ||||||
11 | outside the United States is 80% or more of that | ||||||
12 | person's total business activity and (ii) for taxable | ||||||
13 | years ending on or after December 31, 2008, to a person | ||||||
14 | who would be a member of the same unitary business | ||||||
15 | group but for the fact that the person is prohibited | ||||||
16 | under Section 1501(a)(27) from being included in the | ||||||
17 | unitary business group because he or she is ordinarily | ||||||
18 | required to apportion business income under different | ||||||
19 | subsections of Section 304, but not to exceed the | ||||||
20 | addition modification required to be made for the same | ||||||
21 | taxable year under Section 203(a)(2)(D-17) for | ||||||
22 | interest paid, accrued, or incurred, directly or | ||||||
23 | indirectly, to the same person. This subparagraph (DD) | ||||||
24 | is exempt from the provisions of Section 250; | ||||||
25 | (EE) An amount equal to the income from intangible | ||||||
26 | property taken into account for the taxable year (net |
| |||||||
| |||||||
1 | of the deductions allocable thereto) with respect to | ||||||
2 | transactions with (i) a foreign person who would be a | ||||||
3 | member of the taxpayer's unitary business group but for | ||||||
4 | the fact that the foreign person's business activity | ||||||
5 | outside the United States is 80% or more of that | ||||||
6 | person's total business activity and (ii) for taxable | ||||||
7 | years ending on or after December 31, 2008, to a person | ||||||
8 | who would be a member of the same unitary business | ||||||
9 | group but for the fact that the person is prohibited | ||||||
10 | under Section 1501(a)(27) from being included in the | ||||||
11 | unitary business group because he or she is ordinarily | ||||||
12 | required to apportion business income under different | ||||||
13 | subsections of Section 304, but not to exceed the | ||||||
14 | addition modification required to be made for the same | ||||||
15 | taxable year under Section 203(a)(2)(D-18) for | ||||||
16 | intangible expenses and costs paid, accrued, or | ||||||
17 | incurred, directly or indirectly, to the same foreign | ||||||
18 | person. This subparagraph (EE) is exempt from the | ||||||
19 | provisions of Section 250; | ||||||
20 | (FF) An amount equal to any amount awarded to the | ||||||
21 | taxpayer during the taxable year by the Court of Claims | ||||||
22 | under subsection (c) of Section 8 of the Court of | ||||||
23 | Claims Act for time unjustly served in a State prison. | ||||||
24 | This subparagraph (FF) is exempt from the provisions of | ||||||
25 | Section 250; and | ||||||
26 | (GG) For taxable years ending on or after December |
| |||||||
| |||||||
1 | 31, 2011, in the case of a taxpayer who was required to | ||||||
2 | add back any insurance premiums under Section | ||||||
3 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
4 | that part of a reimbursement received from the | ||||||
5 | insurance company equal to the amount of the expense or | ||||||
6 | loss (including expenses incurred by the insurance | ||||||
7 | company) that would have been taken into account as a | ||||||
8 | deduction for federal income tax purposes if the | ||||||
9 | expense or loss had been uninsured. If a taxpayer makes | ||||||
10 | the election provided for by this subparagraph (GG), | ||||||
11 | the insurer to which the premiums were paid must add | ||||||
12 | back to income the amount subtracted by the taxpayer | ||||||
13 | pursuant to this subparagraph (GG). This subparagraph | ||||||
14 | (GG) is exempt from the provisions of Section 250.
| ||||||
15 | (b) Corporations. | ||||||
16 | (1) In general. In the case of a corporation, base | ||||||
17 | income means an
amount equal to the taxpayer's taxable | ||||||
18 | income for the taxable year as
modified by paragraph (2). | ||||||
19 | (2) Modifications. The taxable income referred to in | ||||||
20 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
21 | of the following amounts: | ||||||
22 | (A) An amount equal to all amounts paid or accrued | ||||||
23 | to the taxpayer
as interest and all distributions | ||||||
24 | received from regulated investment
companies during | ||||||
25 | the taxable year to the extent excluded from gross
|
| |||||||
| |||||||
1 | income in the computation of taxable income; | ||||||
2 | (B) An amount equal to the amount of tax imposed by | ||||||
3 | this Act to the
extent deducted from gross income in | ||||||
4 | the computation of taxable income
for the taxable year; | ||||||
5 | (C) In the case of a regulated investment company, | ||||||
6 | an amount equal to
the excess of (i) the net long-term | ||||||
7 | capital gain for the taxable year, over
(ii) the amount | ||||||
8 | of the capital gain dividends designated as such in | ||||||
9 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
10 | Revenue Code and any amount
designated under Section | ||||||
11 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
12 | attributable to the taxable year (this amendatory Act | ||||||
13 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
14 | law and is not a new
enactment); | ||||||
15 | (D) The amount of any net operating loss deduction | ||||||
16 | taken in arriving
at taxable income, other than a net | ||||||
17 | operating loss carried forward from a
taxable year | ||||||
18 | ending prior to December 31, 1986; | ||||||
19 | (E) For taxable years in which a net operating loss | ||||||
20 | carryback or
carryforward from a taxable year ending | ||||||
21 | prior to December 31, 1986 is an
element of taxable | ||||||
22 | income under paragraph (1) of subsection (e) or
| ||||||
23 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
24 | the amount by which
addition modifications other than | ||||||
25 | those provided by this subparagraph (E)
exceeded | ||||||
26 | subtraction modifications in such earlier taxable |
| |||||||
| |||||||
1 | year, with the
following limitations applied in the | ||||||
2 | order that they are listed: | ||||||
3 | (i) the addition modification relating to the | ||||||
4 | net operating loss
carried back or forward to the | ||||||
5 | taxable year from any taxable year ending
prior to | ||||||
6 | December 31, 1986 shall be reduced by the amount of | ||||||
7 | addition
modification under this subparagraph (E) | ||||||
8 | which related to that net operating
loss and which | ||||||
9 | was taken into account in calculating the base | ||||||
10 | income of an
earlier taxable year, and | ||||||
11 | (ii) the addition modification relating to the | ||||||
12 | net operating loss
carried back or forward to the | ||||||
13 | taxable year from any taxable year ending
prior to | ||||||
14 | December 31, 1986 shall not exceed the amount of | ||||||
15 | such carryback or
carryforward; | ||||||
16 | For taxable years in which there is a net operating | ||||||
17 | loss carryback or
carryforward from more than one other | ||||||
18 | taxable year ending prior to December
31, 1986, the | ||||||
19 | addition modification provided in this subparagraph | ||||||
20 | (E) shall
be the sum of the amounts computed | ||||||
21 | independently under the preceding
provisions of this | ||||||
22 | subparagraph (E) for each such taxable year; | ||||||
23 | (E-5) For taxable years ending after December 31, | ||||||
24 | 1997, an
amount equal to any eligible remediation costs | ||||||
25 | that the corporation
deducted in computing adjusted | ||||||
26 | gross income and for which the
corporation claims a |
| |||||||
| |||||||
1 | credit under subsection (l) of Section 201; | ||||||
2 | (E-10) For taxable years 2001 and thereafter, an | ||||||
3 | amount equal to the
bonus depreciation deduction taken | ||||||
4 | on the taxpayer's federal income tax return for the | ||||||
5 | taxable
year under subsection (k) of Section 168 of the | ||||||
6 | Internal Revenue Code; | ||||||
7 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
8 | or otherwise disposes of property for which the | ||||||
9 | taxpayer was required in any taxable year to
make an | ||||||
10 | addition modification under subparagraph (E-10), then | ||||||
11 | an amount equal
to the aggregate amount of the | ||||||
12 | deductions taken in all taxable
years under | ||||||
13 | subparagraph (T) with respect to that property. | ||||||
14 | If the taxpayer continues to own property through | ||||||
15 | the last day of the last tax year for which the | ||||||
16 | taxpayer may claim a depreciation deduction for | ||||||
17 | federal income tax purposes and for which the taxpayer | ||||||
18 | was allowed in any taxable year to make a subtraction | ||||||
19 | modification under subparagraph (T), then an amount | ||||||
20 | equal to that subtraction modification.
| ||||||
21 | The taxpayer is required to make the addition | ||||||
22 | modification under this
subparagraph
only once with | ||||||
23 | respect to any one piece of property; | ||||||
24 | (E-12) An amount equal to the amount otherwise | ||||||
25 | allowed as a deduction in computing base income for | ||||||
26 | interest paid, accrued, or incurred, directly or |
| |||||||
| |||||||
1 | indirectly, (i) for taxable years ending on or after | ||||||
2 | December 31, 2004, to a foreign person who would be a | ||||||
3 | member of the same unitary business group but for the | ||||||
4 | fact the foreign person's business activity outside | ||||||
5 | the United States is 80% or more of the foreign | ||||||
6 | person's total business activity and (ii) for taxable | ||||||
7 | years ending on or after December 31, 2008, to a person | ||||||
8 | who would be a member of the same unitary business | ||||||
9 | group but for the fact that the person is prohibited | ||||||
10 | under Section 1501(a)(27) from being included in the | ||||||
11 | unitary business group because he or she is ordinarily | ||||||
12 | required to apportion business income under different | ||||||
13 | subsections of Section 304. The addition modification | ||||||
14 | required by this subparagraph shall be reduced to the | ||||||
15 | extent that dividends were included in base income of | ||||||
16 | the unitary group for the same taxable year and | ||||||
17 | received by the taxpayer or by a member of the | ||||||
18 | taxpayer's unitary business group (including amounts | ||||||
19 | included in gross income pursuant to Sections 951 | ||||||
20 | through 964 of the Internal Revenue Code and amounts | ||||||
21 | included in gross income under Section 78 of the | ||||||
22 | Internal Revenue Code) with respect to the stock of the | ||||||
23 | same person to whom the interest was paid, accrued, or | ||||||
24 | incurred.
| ||||||
25 | This paragraph shall not apply to the following:
| ||||||
26 | (i) an item of interest paid, accrued, or |
| |||||||
| |||||||
1 | incurred, directly or indirectly, to a person who | ||||||
2 | is subject in a foreign country or state, other | ||||||
3 | than a state which requires mandatory unitary | ||||||
4 | reporting, to a tax on or measured by net income | ||||||
5 | with respect to such interest; or | ||||||
6 | (ii) an item of interest paid, accrued, or | ||||||
7 | incurred, directly or indirectly, to a person if | ||||||
8 | the taxpayer can establish, based on a | ||||||
9 | preponderance of the evidence, both of the | ||||||
10 | following: | ||||||
11 | (a) the person, during the same taxable | ||||||
12 | year, paid, accrued, or incurred, the interest | ||||||
13 | to a person that is not a related member, and | ||||||
14 | (b) the transaction giving rise to the | ||||||
15 | interest expense between the taxpayer and the | ||||||
16 | person did not have as a principal purpose the | ||||||
17 | avoidance of Illinois income tax, and is paid | ||||||
18 | pursuant to a contract or agreement that | ||||||
19 | reflects an arm's-length interest rate and | ||||||
20 | terms; or
| ||||||
21 | (iii) the taxpayer can establish, based on | ||||||
22 | clear and convincing evidence, that the interest | ||||||
23 | paid, accrued, or incurred relates to a contract or | ||||||
24 | agreement entered into at arm's-length rates and | ||||||
25 | terms and the principal purpose for the payment is | ||||||
26 | not federal or Illinois tax avoidance; or
|
| |||||||
| |||||||
1 | (iv) an item of interest paid, accrued, or | ||||||
2 | incurred, directly or indirectly, to a person if | ||||||
3 | the taxpayer establishes by clear and convincing | ||||||
4 | evidence that the adjustments are unreasonable; or | ||||||
5 | if the taxpayer and the Director agree in writing | ||||||
6 | to the application or use of an alternative method | ||||||
7 | of apportionment under Section 304(f).
| ||||||
8 | Nothing in this subsection shall preclude the | ||||||
9 | Director from making any other adjustment | ||||||
10 | otherwise allowed under Section 404 of this Act for | ||||||
11 | any tax year beginning after the effective date of | ||||||
12 | this amendment provided such adjustment is made | ||||||
13 | pursuant to regulation adopted by the Department | ||||||
14 | and such regulations provide methods and standards | ||||||
15 | by which the Department will utilize its authority | ||||||
16 | under Section 404 of this Act;
| ||||||
17 | (E-13) An amount equal to the amount of intangible | ||||||
18 | expenses and costs otherwise allowed as a deduction in | ||||||
19 | computing base income, and that were paid, accrued, or | ||||||
20 | incurred, directly or indirectly, (i) for taxable | ||||||
21 | years ending on or after December 31, 2004, to a | ||||||
22 | foreign person who would be a member of the same | ||||||
23 | unitary business group but for the fact that the | ||||||
24 | foreign person's business activity outside the United | ||||||
25 | States is 80% or more of that person's total business | ||||||
26 | activity and (ii) for taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2008, to a person who would be a member of | ||||||
2 | the same unitary business group but for the fact that | ||||||
3 | the person is prohibited under Section 1501(a)(27) | ||||||
4 | from being included in the unitary business group | ||||||
5 | because he or she is ordinarily required to apportion | ||||||
6 | business income under different subsections of Section | ||||||
7 | 304. The addition modification required by this | ||||||
8 | subparagraph shall be reduced to the extent that | ||||||
9 | dividends were included in base income of the unitary | ||||||
10 | group for the same taxable year and received by the | ||||||
11 | taxpayer or by a member of the taxpayer's unitary | ||||||
12 | business group (including amounts included in gross | ||||||
13 | income pursuant to Sections 951 through 964 of the | ||||||
14 | Internal Revenue Code and amounts included in gross | ||||||
15 | income under Section 78 of the Internal Revenue Code) | ||||||
16 | with respect to the stock of the same person to whom | ||||||
17 | the intangible expenses and costs were directly or | ||||||
18 | indirectly paid, incurred, or accrued. The preceding | ||||||
19 | sentence shall not apply to the extent that the same | ||||||
20 | dividends caused a reduction to the addition | ||||||
21 | modification required under Section 203(b)(2)(E-12) of | ||||||
22 | this Act.
As used in this subparagraph, the term | ||||||
23 | "intangible expenses and costs" includes (1) expenses, | ||||||
24 | losses, and costs for, or related to, the direct or | ||||||
25 | indirect acquisition, use, maintenance or management, | ||||||
26 | ownership, sale, exchange, or any other disposition of |
| |||||||
| |||||||
1 | intangible property; (2) losses incurred, directly or | ||||||
2 | indirectly, from factoring transactions or discounting | ||||||
3 | transactions; (3) royalty, patent, technical, and | ||||||
4 | copyright fees; (4) licensing fees; and (5) other | ||||||
5 | similar expenses and costs.
For purposes of this | ||||||
6 | subparagraph, "intangible property" includes patents, | ||||||
7 | patent applications, trade names, trademarks, service | ||||||
8 | marks, copyrights, mask works, trade secrets, and | ||||||
9 | similar types of intangible assets. | ||||||
10 | This paragraph shall not apply to the following: | ||||||
11 | (i) any item of intangible expenses or costs | ||||||
12 | paid, accrued, or incurred, directly or | ||||||
13 | indirectly, from a transaction with a person who is | ||||||
14 | subject in a foreign country or state, other than a | ||||||
15 | state which requires mandatory unitary reporting, | ||||||
16 | to a tax on or measured by net income with respect | ||||||
17 | to such item; or | ||||||
18 | (ii) any item of intangible expense or cost | ||||||
19 | paid, accrued, or incurred, directly or | ||||||
20 | indirectly, if the taxpayer can establish, based | ||||||
21 | on a preponderance of the evidence, both of the | ||||||
22 | following: | ||||||
23 | (a) the person during the same taxable | ||||||
24 | year paid, accrued, or incurred, the | ||||||
25 | intangible expense or cost to a person that is | ||||||
26 | not a related member, and |
| |||||||
| |||||||
1 | (b) the transaction giving rise to the | ||||||
2 | intangible expense or cost between the | ||||||
3 | taxpayer and the person did not have as a | ||||||
4 | principal purpose the avoidance of Illinois | ||||||
5 | income tax, and is paid pursuant to a contract | ||||||
6 | or agreement that reflects arm's-length terms; | ||||||
7 | or | ||||||
8 | (iii) any item of intangible expense or cost | ||||||
9 | paid, accrued, or incurred, directly or | ||||||
10 | indirectly, from a transaction with a person if the | ||||||
11 | taxpayer establishes by clear and convincing | ||||||
12 | evidence, that the adjustments are unreasonable; | ||||||
13 | or if the taxpayer and the Director agree in | ||||||
14 | writing to the application or use of an alternative | ||||||
15 | method of apportionment under Section 304(f);
| ||||||
16 | Nothing in this subsection shall preclude the | ||||||
17 | Director from making any other adjustment | ||||||
18 | otherwise allowed under Section 404 of this Act for | ||||||
19 | any tax year beginning after the effective date of | ||||||
20 | this amendment provided such adjustment is made | ||||||
21 | pursuant to regulation adopted by the Department | ||||||
22 | and such regulations provide methods and standards | ||||||
23 | by which the Department will utilize its authority | ||||||
24 | under Section 404 of this Act;
| ||||||
25 | (E-14) For taxable years ending on or after | ||||||
26 | December 31, 2008, an amount equal to the amount of |
| |||||||
| |||||||
1 | insurance premium expenses and costs otherwise allowed | ||||||
2 | as a deduction in computing base income, and that were | ||||||
3 | paid, accrued, or incurred, directly or indirectly, to | ||||||
4 | a person who would be a member of the same unitary | ||||||
5 | business group but for the fact that the person is | ||||||
6 | prohibited under Section 1501(a)(27) from being | ||||||
7 | included in the unitary business group because he or | ||||||
8 | she is ordinarily required to apportion business | ||||||
9 | income under different subsections of Section 304. The | ||||||
10 | addition modification required by this subparagraph | ||||||
11 | shall be reduced to the extent that dividends were | ||||||
12 | included in base income of the unitary group for the | ||||||
13 | same taxable year and received by the taxpayer or by a | ||||||
14 | member of the taxpayer's unitary business group | ||||||
15 | (including amounts included in gross income under | ||||||
16 | Sections 951 through 964 of the Internal Revenue Code | ||||||
17 | and amounts included in gross income under Section 78 | ||||||
18 | of the Internal Revenue Code) with respect to the stock | ||||||
19 | of the same person to whom the premiums and costs were | ||||||
20 | directly or indirectly paid, incurred, or accrued. The | ||||||
21 | preceding sentence does not apply to the extent that | ||||||
22 | the same dividends caused a reduction to the addition | ||||||
23 | modification required under Section 203(b)(2)(E-12) or | ||||||
24 | Section 203(b)(2)(E-13) of this Act;
| ||||||
25 | (E-15) For taxable years beginning after December | ||||||
26 | 31, 2008, any deduction for dividends paid by a captive |
| |||||||
| |||||||
1 | real estate investment trust that is allowed to a real | ||||||
2 | estate investment trust under Section 857(b)(2)(B) of | ||||||
3 | the Internal Revenue Code for dividends paid; | ||||||
4 | (E-16) An amount equal to the credit allowable to | ||||||
5 | the taxpayer under Section 218(a) of this Act, | ||||||
6 | determined without regard to Section 218(c) of this | ||||||
7 | Act; | ||||||
8 | (E-17) For taxable years ending on or after
| ||||||
9 | December 31, 2015, any deduction allowed to the
| ||||||
10 | taxpayer under Sections 243 through 246A of the
| ||||||
11 | Internal Revenue Code; | ||||||
12 | and by deducting from the total so obtained the sum of the | ||||||
13 | following
amounts: | ||||||
14 | (F) An amount equal to the amount of any tax | ||||||
15 | imposed by this Act
which was refunded to the taxpayer | ||||||
16 | and included in such total for the
taxable year; | ||||||
17 | (G) An amount equal to any amount included in such | ||||||
18 | total under
Section 78 of the Internal Revenue Code; | ||||||
19 | (H) In the case of a regulated investment company, | ||||||
20 | an amount equal
to the amount of exempt interest | ||||||
21 | dividends as defined in subsection (b)
(5) of Section | ||||||
22 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
23 | for the taxable year; | ||||||
24 | (I) With the exception of any amounts subtracted | ||||||
25 | under subparagraph
(J),
an amount equal to the sum of | ||||||
26 | all amounts disallowed as
deductions by (i) Sections |
| |||||||
| |||||||
1 | 171(a) (2), and 265(a)(2) and amounts disallowed as
| ||||||
2 | interest expense by Section 291(a)(3) of the Internal | ||||||
3 | Revenue Code, and all amounts of expenses allocable to | ||||||
4 | interest and
disallowed as deductions by Section | ||||||
5 | 265(a)(1) of the Internal Revenue Code;
and (ii) for | ||||||
6 | taxable years
ending on or after August 13, 1999, | ||||||
7 | Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
8 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
9 | for tax years ending on or after December 31, 2011, | ||||||
10 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
11 | of the Internal Revenue Code and, for taxable years | ||||||
12 | ending on or after December 31, 2008, any amount | ||||||
13 | included in gross income under Section 87 of the | ||||||
14 | Internal Revenue Code and the policyholders' share of | ||||||
15 | tax-exempt interest of a life insurance company under | ||||||
16 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
17 | the case of a life insurance company with gross income | ||||||
18 | from a decrease in reserves for the tax year) or | ||||||
19 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
20 | the case of a life insurance company allowed a | ||||||
21 | deduction for an increase in reserves for the tax | ||||||
22 | year); the
provisions of this
subparagraph are exempt | ||||||
23 | from the provisions of Section 250; | ||||||
24 | (J) An amount equal to all amounts included in such | ||||||
25 | total which are
exempt from taxation by this State | ||||||
26 | either by reason of its statutes or
Constitution
or by |
| |||||||
| |||||||
1 | reason of the Constitution, treaties or statutes of the | ||||||
2 | United States;
provided that, in the case of any | ||||||
3 | statute of this State that exempts income
derived from | ||||||
4 | bonds or other obligations from the tax imposed under | ||||||
5 | this Act,
the amount exempted shall be the interest net | ||||||
6 | of bond premium amortization; | ||||||
7 | (K) An amount equal to those dividends included in | ||||||
8 | such total
which were paid by a corporation which | ||||||
9 | conducts
business operations in a River Edge | ||||||
10 | Redevelopment Zone or zones created under the River | ||||||
11 | Edge Redevelopment Zone Act and conducts substantially | ||||||
12 | all of its
operations in a River Edge Redevelopment | ||||||
13 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
14 | provisions of Section 250; | ||||||
15 | (L) An amount equal to those dividends included in | ||||||
16 | such total that
were paid by a corporation that | ||||||
17 | conducts business operations in a federally
designated | ||||||
18 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
19 | High Impact
Business located in Illinois; provided | ||||||
20 | that dividends eligible for the
deduction provided in | ||||||
21 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
22 | shall not be eligible for the deduction provided under | ||||||
23 | this subparagraph
(L); | ||||||
24 | (M) For any taxpayer that is a financial | ||||||
25 | organization within the meaning
of Section 304(c) of | ||||||
26 | this Act, an amount included in such total as interest
|
| |||||||
| |||||||
1 | income from a loan or loans made by such taxpayer to a | ||||||
2 | borrower, to the extent
that such a loan is secured by | ||||||
3 | property which is eligible for the River Edge | ||||||
4 | Redevelopment Zone Investment Credit. To determine the | ||||||
5 | portion of a loan or loans that is
secured by property | ||||||
6 | eligible for a Section 201(f) investment
credit to the | ||||||
7 | borrower, the entire principal amount of the loan or | ||||||
8 | loans
between the taxpayer and the borrower should be | ||||||
9 | divided into the basis of the
Section 201(f) investment | ||||||
10 | credit property which secures the
loan or loans, using | ||||||
11 | for this purpose the original basis of such property on
| ||||||
12 | the date that it was placed in service in the River | ||||||
13 | Edge Redevelopment Zone. The subtraction modification | ||||||
14 | available to taxpayer in any
year under this subsection | ||||||
15 | shall be that portion of the total interest paid
by the | ||||||
16 | borrower with respect to such loan attributable to the | ||||||
17 | eligible
property as calculated under the previous | ||||||
18 | sentence. This subparagraph (M) is exempt from the | ||||||
19 | provisions of Section 250; | ||||||
20 | (M-1) For any taxpayer that is a financial | ||||||
21 | organization within the
meaning of Section 304(c) of | ||||||
22 | this Act, an amount included in such total as
interest | ||||||
23 | income from a loan or loans made by such taxpayer to a | ||||||
24 | borrower,
to the extent that such a loan is secured by | ||||||
25 | property which is eligible for
the High Impact Business | ||||||
26 | Investment Credit. To determine the portion of a
loan |
| |||||||
| |||||||
1 | or loans that is secured by property eligible for a | ||||||
2 | Section 201(h) investment credit to the borrower, the | ||||||
3 | entire principal amount of
the loan or loans between | ||||||
4 | the taxpayer and the borrower should be divided into
| ||||||
5 | the basis of the Section 201(h) investment credit | ||||||
6 | property which
secures the loan or loans, using for | ||||||
7 | this purpose the original basis of such
property on the | ||||||
8 | date that it was placed in service in a federally | ||||||
9 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
10 | Illinois. No taxpayer that is
eligible for the | ||||||
11 | deduction provided in subparagraph (M) of paragraph | ||||||
12 | (2) of
this subsection shall be eligible for the | ||||||
13 | deduction provided under this
subparagraph (M-1). The | ||||||
14 | subtraction modification available to taxpayers in
any | ||||||
15 | year under this subsection shall be that portion of the | ||||||
16 | total interest
paid by the borrower with respect to | ||||||
17 | such loan attributable to the eligible
property as | ||||||
18 | calculated under the previous sentence; | ||||||
19 | (N) Two times any contribution made during the | ||||||
20 | taxable year to a
designated zone organization to the | ||||||
21 | extent that the contribution (i)
qualifies as a | ||||||
22 | charitable contribution under subsection (c) of | ||||||
23 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
24 | by its terms, be used for a
project approved by the | ||||||
25 | Department of Commerce and Economic Opportunity under | ||||||
26 | Section 11 of the Illinois Enterprise Zone Act or under |
| |||||||
| |||||||
1 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
2 | This subparagraph (N) is exempt from the provisions of | ||||||
3 | Section 250; | ||||||
4 | (O) An amount equal to: (i) 85% for taxable years | ||||||
5 | ending on or before
December 31, 1992, or, a percentage | ||||||
6 | equal to the percentage allowable under
Section | ||||||
7 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
8 | taxable years ending
after December 31, 1992, of the | ||||||
9 | amount by which dividends included in taxable
income | ||||||
10 | and received from a corporation that is not created or | ||||||
11 | organized under
the laws of the United States or any | ||||||
12 | state or political subdivision thereof,
including, for | ||||||
13 | taxable years ending on or after December 31, 1988, | ||||||
14 | dividends
received or deemed received or paid or deemed | ||||||
15 | paid under Sections 951 through
965 of the Internal | ||||||
16 | Revenue Code, exceed the amount of the modification
| ||||||
17 | provided under subparagraph (G) of paragraph (2) of | ||||||
18 | this subsection (b) which
is related to such dividends, | ||||||
19 | and including, for taxable years ending on or after | ||||||
20 | December 31, 2008, dividends received from a captive | ||||||
21 | real estate investment trust; plus (ii) 100% of the | ||||||
22 | amount by which dividends,
included in taxable income | ||||||
23 | and received, including, for taxable years ending on
or | ||||||
24 | after December 31, 1988, dividends received or deemed | ||||||
25 | received or paid or
deemed paid under Sections 951 | ||||||
26 | through 964 of the Internal Revenue Code and including, |
| |||||||
| |||||||
1 | for taxable years ending on or after December 31, 2008, | ||||||
2 | dividends received from a captive real estate | ||||||
3 | investment trust, from
any such corporation specified | ||||||
4 | in clause (i) that would but for the provisions
of | ||||||
5 | Section 1504 (b) (3) of the Internal Revenue Code be | ||||||
6 | treated as a member of
the affiliated group which | ||||||
7 | includes the dividend recipient, exceed the amount
of | ||||||
8 | the modification provided under subparagraph (G) of | ||||||
9 | paragraph (2) of this
subsection (b) which is related | ||||||
10 | to such dividends. This subparagraph (O) is exempt from | ||||||
11 | the provisions of Section 250 of this Act; | ||||||
12 | (P) An amount equal to any contribution made to a | ||||||
13 | job training project
established pursuant to the Tax | ||||||
14 | Increment Allocation Redevelopment Act; | ||||||
15 | (Q) An amount equal to the amount of the deduction | ||||||
16 | used to compute the
federal income tax credit for | ||||||
17 | restoration of substantial amounts held under
claim of | ||||||
18 | right for the taxable year pursuant to Section 1341 of | ||||||
19 | the
Internal Revenue Code; | ||||||
20 | (R) On and after July 20, 1999, in the case of an | ||||||
21 | attorney-in-fact with respect to whom an
interinsurer | ||||||
22 | or a reciprocal insurer has made the election under | ||||||
23 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
24 | 835, an amount equal to the excess, if
any, of the | ||||||
25 | amounts paid or incurred by that interinsurer or | ||||||
26 | reciprocal insurer
in the taxable year to the |
| |||||||
| |||||||
1 | attorney-in-fact over the deduction allowed to that
| ||||||
2 | interinsurer or reciprocal insurer with respect to the | ||||||
3 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
4 | Revenue Code for the taxable year; the provisions of | ||||||
5 | this subparagraph are exempt from the provisions of | ||||||
6 | Section 250; | ||||||
7 | (S) For taxable years ending on or after December | ||||||
8 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
9 | amount equal to all amounts of income allocable to a
| ||||||
10 | shareholder subject to the Personal Property Tax | ||||||
11 | Replacement Income Tax imposed
by subsections (c) and | ||||||
12 | (d) of Section 201 of this Act, including amounts
| ||||||
13 | allocable to organizations exempt from federal income | ||||||
14 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
15 | Code. This subparagraph (S) is exempt from
the | ||||||
16 | provisions of Section 250; | ||||||
17 | (T) For taxable years 2001 and thereafter, for the | ||||||
18 | taxable year in
which the bonus depreciation deduction
| ||||||
19 | is taken on the taxpayer's federal income tax return | ||||||
20 | under
subsection (k) of Section 168 of the Internal | ||||||
21 | Revenue Code and for each
applicable taxable year | ||||||
22 | thereafter, an amount equal to "x", where: | ||||||
23 | (1) "y" equals the amount of the depreciation | ||||||
24 | deduction taken for the
taxable year
on the | ||||||
25 | taxpayer's federal income tax return on property | ||||||
26 | for which the bonus
depreciation deduction
was |
| |||||||
| |||||||
1 | taken in any year under subsection (k) of Section | ||||||
2 | 168 of the Internal
Revenue Code, but not including | ||||||
3 | the bonus depreciation deduction; | ||||||
4 | (2) for taxable years ending on or before | ||||||
5 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
6 | and then divided by 70 (or "y"
multiplied by | ||||||
7 | 0.429); and | ||||||
8 | (3) for taxable years ending after December | ||||||
9 | 31, 2005: | ||||||
10 | (i) for property on which a bonus | ||||||
11 | depreciation deduction of 30% of the adjusted | ||||||
12 | basis was taken, "x" equals "y" multiplied by | ||||||
13 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
14 | 0.429); and | ||||||
15 | (ii) for property on which a bonus | ||||||
16 | depreciation deduction of 50% of the adjusted | ||||||
17 | basis was taken, "x" equals "y" multiplied by | ||||||
18 | 1.0. | ||||||
19 | The aggregate amount deducted under this | ||||||
20 | subparagraph in all taxable
years for any one piece of | ||||||
21 | property may not exceed the amount of the bonus
| ||||||
22 | depreciation deduction
taken on that property on the | ||||||
23 | taxpayer's federal income tax return under
subsection | ||||||
24 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
25 | subparagraph (T) is exempt from the provisions of | ||||||
26 | Section 250; |
| |||||||
| |||||||
1 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
2 | otherwise disposes of
property for which the taxpayer | ||||||
3 | was required in any taxable year to make an
addition | ||||||
4 | modification under subparagraph (E-10), then an amount | ||||||
5 | equal to that
addition modification. | ||||||
6 | If the taxpayer continues to own property through | ||||||
7 | the last day of the last tax year for which the | ||||||
8 | taxpayer may claim a depreciation deduction for | ||||||
9 | federal income tax purposes and for which the taxpayer | ||||||
10 | was required in any taxable year to make an addition | ||||||
11 | modification under subparagraph (E-10), then an amount | ||||||
12 | equal to that addition modification.
| ||||||
13 | The taxpayer is allowed to take the deduction under | ||||||
14 | this subparagraph
only once with respect to any one | ||||||
15 | piece of property. | ||||||
16 | This subparagraph (U) is exempt from the | ||||||
17 | provisions of Section 250; | ||||||
18 | (V) The amount of: (i) any interest income (net of | ||||||
19 | the deductions allocable thereto) taken into account | ||||||
20 | for the taxable year with respect to a transaction with | ||||||
21 | a taxpayer that is required to make an addition | ||||||
22 | modification with respect to such transaction under | ||||||
23 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
24 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
25 | the amount of such addition modification,
(ii) any | ||||||
26 | income from intangible property (net of the deductions |
| |||||||
| |||||||
1 | allocable thereto) taken into account for the taxable | ||||||
2 | year with respect to a transaction with a taxpayer that | ||||||
3 | is required to make an addition modification with | ||||||
4 | respect to such transaction under Section | ||||||
5 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
6 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
7 | addition modification, and (iii) any insurance premium | ||||||
8 | income (net of deductions allocable thereto) taken | ||||||
9 | into account for the taxable year with respect to a | ||||||
10 | transaction with a taxpayer that is required to make an | ||||||
11 | addition modification with respect to such transaction | ||||||
12 | under Section 203(a)(2)(D-19), Section | ||||||
13 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
14 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
15 | addition modification. This subparagraph (V) is exempt | ||||||
16 | from the provisions of Section 250;
| ||||||
17 | (W) An amount equal to the interest income taken | ||||||
18 | into account for the taxable year (net of the | ||||||
19 | deductions allocable thereto) with respect to | ||||||
20 | transactions with (i) a foreign person who would be a | ||||||
21 | member of the taxpayer's unitary business group but for | ||||||
22 | the fact that the foreign person's business activity | ||||||
23 | outside the United States is 80% or more of that | ||||||
24 | person's total business activity and (ii) for taxable | ||||||
25 | years ending on or after December 31, 2008, to a person | ||||||
26 | who would be a member of the same unitary business |
| |||||||
| |||||||
1 | group but for the fact that the person is prohibited | ||||||
2 | under Section 1501(a)(27) from being included in the | ||||||
3 | unitary business group because he or she is ordinarily | ||||||
4 | required to apportion business income under different | ||||||
5 | subsections of Section 304, but not to exceed the | ||||||
6 | addition modification required to be made for the same | ||||||
7 | taxable year under Section 203(b)(2)(E-12) for | ||||||
8 | interest paid, accrued, or incurred, directly or | ||||||
9 | indirectly, to the same person. This subparagraph (W) | ||||||
10 | is exempt from the provisions of Section 250;
| ||||||
11 | (X) An amount equal to the income from intangible | ||||||
12 | property taken into account for the taxable year (net | ||||||
13 | of the deductions allocable thereto) with respect to | ||||||
14 | transactions with (i) a foreign person who would be a | ||||||
15 | member of the taxpayer's unitary business group but for | ||||||
16 | the fact that the foreign person's business activity | ||||||
17 | outside the United States is 80% or more of that | ||||||
18 | person's total business activity and (ii) for taxable | ||||||
19 | years ending on or after December 31, 2008, to a person | ||||||
20 | who would be a member of the same unitary business | ||||||
21 | group but for the fact that the person is prohibited | ||||||
22 | under Section 1501(a)(27) from being included in the | ||||||
23 | unitary business group because he or she is ordinarily | ||||||
24 | required to apportion business income under different | ||||||
25 | subsections of Section 304, but not to exceed the | ||||||
26 | addition modification required to be made for the same |
| |||||||
| |||||||
1 | taxable year under Section 203(b)(2)(E-13) for | ||||||
2 | intangible expenses and costs paid, accrued, or | ||||||
3 | incurred, directly or indirectly, to the same foreign | ||||||
4 | person. This subparagraph (X) is exempt from the | ||||||
5 | provisions of Section 250;
| ||||||
6 | (Y) For taxable years ending on or after December | ||||||
7 | 31, 2011, in the case of a taxpayer who was required to | ||||||
8 | add back any insurance premiums under Section | ||||||
9 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
10 | that part of a reimbursement received from the | ||||||
11 | insurance company equal to the amount of the expense or | ||||||
12 | loss (including expenses incurred by the insurance | ||||||
13 | company) that would have been taken into account as a | ||||||
14 | deduction for federal income tax purposes if the | ||||||
15 | expense or loss had been uninsured. If a taxpayer makes | ||||||
16 | the election provided for by this subparagraph (Y), the | ||||||
17 | insurer to which the premiums were paid must add back | ||||||
18 | to income the amount subtracted by the taxpayer | ||||||
19 | pursuant to this subparagraph (Y). This subparagraph | ||||||
20 | (Y) is exempt from the provisions of Section 250; and | ||||||
21 | (Z) The difference between the nondeductible | ||||||
22 | controlled foreign corporation dividends under Section | ||||||
23 | 965(e)(3) of the Internal Revenue Code over the taxable | ||||||
24 | income of the taxpayer, computed without regard to | ||||||
25 | Section 965(e)(2)(A) of the Internal Revenue Code, and | ||||||
26 | without regard to any net operating loss deduction. |
| |||||||
| |||||||
1 | This subparagraph (Z) is exempt from the provisions of | ||||||
2 | Section 250. | ||||||
3 | (3) Special rule. For purposes of paragraph (2) (A), | ||||||
4 | "gross income"
in the case of a life insurance company, for | ||||||
5 | tax years ending on and after
December 31, 1994,
and prior | ||||||
6 | to December 31, 2011, shall mean the gross investment | ||||||
7 | income for the taxable year and, for tax years ending on or | ||||||
8 | after December 31, 2011, shall mean all amounts included in | ||||||
9 | life insurance gross income under Section 803(a)(3) of the | ||||||
10 | Internal Revenue Code.
| ||||||
11 | (c) Trusts and estates. | ||||||
12 | (1) In general. In the case of a trust or estate, base | ||||||
13 | income means
an amount equal to the taxpayer's taxable | ||||||
14 | income for the taxable year as
modified by paragraph (2). | ||||||
15 | (2) Modifications. Subject to the provisions of | ||||||
16 | paragraph (3), the
taxable income referred to in paragraph | ||||||
17 | (1) shall be modified by adding
thereto the sum of the | ||||||
18 | following amounts: | ||||||
19 | (A) An amount equal to all amounts paid or accrued | ||||||
20 | to the taxpayer
as interest or dividends during the | ||||||
21 | taxable year to the extent excluded
from gross income | ||||||
22 | in the computation of taxable income; | ||||||
23 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
24 | trust which, under
its governing instrument, is | ||||||
25 | required to distribute all of its income
currently, |
| |||||||
| |||||||
1 | $300; and (iii) any other trust, $100, but in each such | ||||||
2 | case,
only to the extent such amount was deducted in | ||||||
3 | the computation of
taxable income; | ||||||
4 | (C) An amount equal to the amount of tax imposed by | ||||||
5 | this Act to the
extent deducted from gross income in | ||||||
6 | the computation of taxable income
for the taxable year; | ||||||
7 | (D) The amount of any net operating loss deduction | ||||||
8 | taken in arriving at
taxable income, other than a net | ||||||
9 | operating loss carried forward from a
taxable year | ||||||
10 | ending prior to December 31, 1986; | ||||||
11 | (E) For taxable years in which a net operating loss | ||||||
12 | carryback or
carryforward from a taxable year ending | ||||||
13 | prior to December 31, 1986 is an
element of taxable | ||||||
14 | income under paragraph (1) of subsection (e) or | ||||||
15 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
16 | the amount by which addition
modifications other than | ||||||
17 | those provided by this subparagraph (E) exceeded
| ||||||
18 | subtraction modifications in such taxable year, with | ||||||
19 | the following limitations
applied in the order that | ||||||
20 | they are listed: | ||||||
21 | (i) the addition modification relating to the | ||||||
22 | net operating loss
carried back or forward to the | ||||||
23 | taxable year from any taxable year ending
prior to | ||||||
24 | December 31, 1986 shall be reduced by the amount of | ||||||
25 | addition
modification under this subparagraph (E) | ||||||
26 | which related to that net
operating loss and which |
| |||||||
| |||||||
1 | was taken into account in calculating the base
| ||||||
2 | income of an earlier taxable year, and | ||||||
3 | (ii) the addition modification relating to the | ||||||
4 | net operating loss
carried back or forward to the | ||||||
5 | taxable year from any taxable year ending
prior to | ||||||
6 | December 31, 1986 shall not exceed the amount of | ||||||
7 | such carryback or
carryforward; | ||||||
8 | For taxable years in which there is a net operating | ||||||
9 | loss carryback or
carryforward from more than one other | ||||||
10 | taxable year ending prior to December
31, 1986, the | ||||||
11 | addition modification provided in this subparagraph | ||||||
12 | (E) shall
be the sum of the amounts computed | ||||||
13 | independently under the preceding
provisions of this | ||||||
14 | subparagraph (E) for each such taxable year; | ||||||
15 | (F) For taxable years ending on or after January 1, | ||||||
16 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
17 | Section 164 of the Internal Revenue
Code if the trust | ||||||
18 | or estate is claiming the same tax for purposes of the
| ||||||
19 | Illinois foreign tax credit under Section 601 of this | ||||||
20 | Act; | ||||||
21 | (G) An amount equal to the amount of the capital | ||||||
22 | gain deduction
allowable under the Internal Revenue | ||||||
23 | Code, to the extent deducted from
gross income in the | ||||||
24 | computation of taxable income; | ||||||
25 | (G-5) For taxable years ending after December 31, | ||||||
26 | 1997, an
amount equal to any eligible remediation costs |
| |||||||
| |||||||
1 | that the trust or estate
deducted in computing adjusted | ||||||
2 | gross income and for which the trust
or estate claims a | ||||||
3 | credit under subsection (l) of Section 201; | ||||||
4 | (G-10) For taxable years 2001 and thereafter, an | ||||||
5 | amount equal to the
bonus depreciation deduction taken | ||||||
6 | on the taxpayer's federal income tax return for the | ||||||
7 | taxable
year under subsection (k) of Section 168 of the | ||||||
8 | Internal Revenue Code; and | ||||||
9 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
10 | or otherwise disposes of property for which the | ||||||
11 | taxpayer was required in any taxable year to
make an | ||||||
12 | addition modification under subparagraph (G-10), then | ||||||
13 | an amount equal
to the aggregate amount of the | ||||||
14 | deductions taken in all taxable
years under | ||||||
15 | subparagraph (R) with respect to that property. | ||||||
16 | If the taxpayer continues to own property through | ||||||
17 | the last day of the last tax year for which the | ||||||
18 | taxpayer may claim a depreciation deduction for | ||||||
19 | federal income tax purposes and for which the taxpayer | ||||||
20 | was allowed in any taxable year to make a subtraction | ||||||
21 | modification under subparagraph (R), then an amount | ||||||
22 | equal to that subtraction modification.
| ||||||
23 | The taxpayer is required to make the addition | ||||||
24 | modification under this
subparagraph
only once with | ||||||
25 | respect to any one piece of property; | ||||||
26 | (G-12) An amount equal to the amount otherwise |
| |||||||
| |||||||
1 | allowed as a deduction in computing base income for | ||||||
2 | interest paid, accrued, or incurred, directly or | ||||||
3 | indirectly, (i) for taxable years ending on or after | ||||||
4 | December 31, 2004, to a foreign person who would be a | ||||||
5 | member of the same unitary business group but for the | ||||||
6 | fact that the foreign person's business activity | ||||||
7 | outside the United States is 80% or more of the foreign | ||||||
8 | person's total business activity and (ii) for taxable | ||||||
9 | years ending on or after December 31, 2008, to a person | ||||||
10 | who would be a member of the same unitary business | ||||||
11 | group but for the fact that the person is prohibited | ||||||
12 | under Section 1501(a)(27) from being included in the | ||||||
13 | unitary business group because he or she is ordinarily | ||||||
14 | required to apportion business income under different | ||||||
15 | subsections of Section 304. The addition modification | ||||||
16 | required by this subparagraph shall be reduced to the | ||||||
17 | extent that dividends were included in base income of | ||||||
18 | the unitary group for the same taxable year and | ||||||
19 | received by the taxpayer or by a member of the | ||||||
20 | taxpayer's unitary business group (including amounts | ||||||
21 | included in gross income pursuant to Sections 951 | ||||||
22 | through 964 of the Internal Revenue Code and amounts | ||||||
23 | included in gross income under Section 78 of the | ||||||
24 | Internal Revenue Code) with respect to the stock of the | ||||||
25 | same person to whom the interest was paid, accrued, or | ||||||
26 | incurred.
|
| |||||||
| |||||||
1 | This paragraph shall not apply to the following:
| ||||||
2 | (i) an item of interest paid, accrued, or | ||||||
3 | incurred, directly or indirectly, to a person who | ||||||
4 | is subject in a foreign country or state, other | ||||||
5 | than a state which requires mandatory unitary | ||||||
6 | reporting, to a tax on or measured by net income | ||||||
7 | with respect to such interest; or | ||||||
8 | (ii) an item of interest paid, accrued, or | ||||||
9 | incurred, directly or indirectly, to a person if | ||||||
10 | the taxpayer can establish, based on a | ||||||
11 | preponderance of the evidence, both of the | ||||||
12 | following: | ||||||
13 | (a) the person, during the same taxable | ||||||
14 | year, paid, accrued, or incurred, the interest | ||||||
15 | to a person that is not a related member, and | ||||||
16 | (b) the transaction giving rise to the | ||||||
17 | interest expense between the taxpayer and the | ||||||
18 | person did not have as a principal purpose the | ||||||
19 | avoidance of Illinois income tax, and is paid | ||||||
20 | pursuant to a contract or agreement that | ||||||
21 | reflects an arm's-length interest rate and | ||||||
22 | terms; or
| ||||||
23 | (iii) the taxpayer can establish, based on | ||||||
24 | clear and convincing evidence, that the interest | ||||||
25 | paid, accrued, or incurred relates to a contract or | ||||||
26 | agreement entered into at arm's-length rates and |
| |||||||
| |||||||
1 | terms and the principal purpose for the payment is | ||||||
2 | not federal or Illinois tax avoidance; or
| ||||||
3 | (iv) an item of interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to a person if | ||||||
5 | the taxpayer establishes by clear and convincing | ||||||
6 | evidence that the adjustments are unreasonable; or | ||||||
7 | if the taxpayer and the Director agree in writing | ||||||
8 | to the application or use of an alternative method | ||||||
9 | of apportionment under Section 304(f).
| ||||||
10 | Nothing in this subsection shall preclude the | ||||||
11 | Director from making any other adjustment | ||||||
12 | otherwise allowed under Section 404 of this Act for | ||||||
13 | any tax year beginning after the effective date of | ||||||
14 | this amendment provided such adjustment is made | ||||||
15 | pursuant to regulation adopted by the Department | ||||||
16 | and such regulations provide methods and standards | ||||||
17 | by which the Department will utilize its authority | ||||||
18 | under Section 404 of this Act;
| ||||||
19 | (G-13) An amount equal to the amount of intangible | ||||||
20 | expenses and costs otherwise allowed as a deduction in | ||||||
21 | computing base income, and that were paid, accrued, or | ||||||
22 | incurred, directly or indirectly, (i) for taxable | ||||||
23 | years ending on or after December 31, 2004, to a | ||||||
24 | foreign person who would be a member of the same | ||||||
25 | unitary business group but for the fact that the | ||||||
26 | foreign person's business activity outside the United |
| |||||||
| |||||||
1 | States is 80% or more of that person's total business | ||||||
2 | activity and (ii) for taxable years ending on or after | ||||||
3 | December 31, 2008, to a person who would be a member of | ||||||
4 | the same unitary business group but for the fact that | ||||||
5 | the person is prohibited under Section 1501(a)(27) | ||||||
6 | from being included in the unitary business group | ||||||
7 | because he or she is ordinarily required to apportion | ||||||
8 | business income under different subsections of Section | ||||||
9 | 304. The addition modification required by this | ||||||
10 | subparagraph shall be reduced to the extent that | ||||||
11 | dividends were included in base income of the unitary | ||||||
12 | group for the same taxable year and received by the | ||||||
13 | taxpayer or by a member of the taxpayer's unitary | ||||||
14 | business group (including amounts included in gross | ||||||
15 | income pursuant to Sections 951 through 964 of the | ||||||
16 | Internal Revenue Code and amounts included in gross | ||||||
17 | income under Section 78 of the Internal Revenue Code) | ||||||
18 | with respect to the stock of the same person to whom | ||||||
19 | the intangible expenses and costs were directly or | ||||||
20 | indirectly paid, incurred, or accrued. The preceding | ||||||
21 | sentence shall not apply to the extent that the same | ||||||
22 | dividends caused a reduction to the addition | ||||||
23 | modification required under Section 203(c)(2)(G-12) of | ||||||
24 | this Act. As used in this subparagraph, the term | ||||||
25 | "intangible expenses and costs" includes: (1) | ||||||
26 | expenses, losses, and costs for or related to the |
| |||||||
| |||||||
1 | direct or indirect acquisition, use, maintenance or | ||||||
2 | management, ownership, sale, exchange, or any other | ||||||
3 | disposition of intangible property; (2) losses | ||||||
4 | incurred, directly or indirectly, from factoring | ||||||
5 | transactions or discounting transactions; (3) royalty, | ||||||
6 | patent, technical, and copyright fees; (4) licensing | ||||||
7 | fees; and (5) other similar expenses and costs. For | ||||||
8 | purposes of this subparagraph, "intangible property" | ||||||
9 | includes patents, patent applications, trade names, | ||||||
10 | trademarks, service marks, copyrights, mask works, | ||||||
11 | trade secrets, and similar types of intangible assets. | ||||||
12 | This paragraph shall not apply to the following: | ||||||
13 | (i) any item of intangible expenses or costs | ||||||
14 | paid, accrued, or incurred, directly or | ||||||
15 | indirectly, from a transaction with a person who is | ||||||
16 | subject in a foreign country or state, other than a | ||||||
17 | state which requires mandatory unitary reporting, | ||||||
18 | to a tax on or measured by net income with respect | ||||||
19 | to such item; or | ||||||
20 | (ii) any item of intangible expense or cost | ||||||
21 | paid, accrued, or incurred, directly or | ||||||
22 | indirectly, if the taxpayer can establish, based | ||||||
23 | on a preponderance of the evidence, both of the | ||||||
24 | following: | ||||||
25 | (a) the person during the same taxable | ||||||
26 | year paid, accrued, or incurred, the |
| |||||||
| |||||||
1 | intangible expense or cost to a person that is | ||||||
2 | not a related member, and | ||||||
3 | (b) the transaction giving rise to the | ||||||
4 | intangible expense or cost between the | ||||||
5 | taxpayer and the person did not have as a | ||||||
6 | principal purpose the avoidance of Illinois | ||||||
7 | income tax, and is paid pursuant to a contract | ||||||
8 | or agreement that reflects arm's-length terms; | ||||||
9 | or | ||||||
10 | (iii) any item of intangible expense or cost | ||||||
11 | paid, accrued, or incurred, directly or | ||||||
12 | indirectly, from a transaction with a person if the | ||||||
13 | taxpayer establishes by clear and convincing | ||||||
14 | evidence, that the adjustments are unreasonable; | ||||||
15 | or if the taxpayer and the Director agree in | ||||||
16 | writing to the application or use of an alternative | ||||||
17 | method of apportionment under Section 304(f);
| ||||||
18 | Nothing in this subsection shall preclude the | ||||||
19 | Director from making any other adjustment | ||||||
20 | otherwise allowed under Section 404 of this Act for | ||||||
21 | any tax year beginning after the effective date of | ||||||
22 | this amendment provided such adjustment is made | ||||||
23 | pursuant to regulation adopted by the Department | ||||||
24 | and such regulations provide methods and standards | ||||||
25 | by which the Department will utilize its authority | ||||||
26 | under Section 404 of this Act;
|
| |||||||
| |||||||
1 | (G-14) For taxable years ending on or after | ||||||
2 | December 31, 2008, an amount equal to the amount of | ||||||
3 | insurance premium expenses and costs otherwise allowed | ||||||
4 | as a deduction in computing base income, and that were | ||||||
5 | paid, accrued, or incurred, directly or indirectly, to | ||||||
6 | a person who would be a member of the same unitary | ||||||
7 | business group but for the fact that the person is | ||||||
8 | prohibited under Section 1501(a)(27) from being | ||||||
9 | included in the unitary business group because he or | ||||||
10 | she is ordinarily required to apportion business | ||||||
11 | income under different subsections of Section 304. The | ||||||
12 | addition modification required by this subparagraph | ||||||
13 | shall be reduced to the extent that dividends were | ||||||
14 | included in base income of the unitary group for the | ||||||
15 | same taxable year and received by the taxpayer or by a | ||||||
16 | member of the taxpayer's unitary business group | ||||||
17 | (including amounts included in gross income under | ||||||
18 | Sections 951 through 964 of the Internal Revenue Code | ||||||
19 | and amounts included in gross income under Section 78 | ||||||
20 | of the Internal Revenue Code) with respect to the stock | ||||||
21 | of the same person to whom the premiums and costs were | ||||||
22 | directly or indirectly paid, incurred, or accrued. The | ||||||
23 | preceding sentence does not apply to the extent that | ||||||
24 | the same dividends caused a reduction to the addition | ||||||
25 | modification required under Section 203(c)(2)(G-12) or | ||||||
26 | Section 203(c)(2)(G-13) of this Act; |
| |||||||
| |||||||
1 | (G-15) An amount equal to the credit allowable to | ||||||
2 | the taxpayer under Section 218(a) of this Act, | ||||||
3 | determined without regard to Section 218(c) of this | ||||||
4 | Act; | ||||||
5 | and by deducting from the total so obtained the sum of the | ||||||
6 | following
amounts: | ||||||
7 | (H) An amount equal to all amounts included in such | ||||||
8 | total pursuant
to the provisions of Sections 402(a), | ||||||
9 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
10 | Internal Revenue Code or included in such total as
| ||||||
11 | distributions under the provisions of any retirement | ||||||
12 | or disability plan for
employees of any governmental | ||||||
13 | agency or unit, or retirement payments to
retired | ||||||
14 | partners, which payments are excluded in computing net | ||||||
15 | earnings
from self employment by Section 1402 of the | ||||||
16 | Internal Revenue Code and
regulations adopted pursuant | ||||||
17 | thereto; | ||||||
18 | (I) The valuation limitation amount; | ||||||
19 | (J) An amount equal to the amount of any tax | ||||||
20 | imposed by this Act
which was refunded to the taxpayer | ||||||
21 | and included in such total for the
taxable year; | ||||||
22 | (K) An amount equal to all amounts included in | ||||||
23 | taxable income as
modified by subparagraphs (A), (B), | ||||||
24 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
25 | taxation by this State either by reason of its statutes | ||||||
26 | or
Constitution
or by reason of the Constitution, |
| |||||||
| |||||||
1 | treaties or statutes of the United States;
provided | ||||||
2 | that, in the case of any statute of this State that | ||||||
3 | exempts income
derived from bonds or other obligations | ||||||
4 | from the tax imposed under this Act,
the amount | ||||||
5 | exempted shall be the interest net of bond premium | ||||||
6 | amortization; | ||||||
7 | (L) With the exception of any amounts subtracted | ||||||
8 | under subparagraph
(K),
an amount equal to the sum of | ||||||
9 | all amounts disallowed as
deductions by (i) Sections | ||||||
10 | 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
11 | and all amounts of expenses allocable
to interest and | ||||||
12 | disallowed as deductions by Section 265(1) of the | ||||||
13 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
14 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
15 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
16 | Code, plus, (iii) for taxable years ending on or after | ||||||
17 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
18 | Revenue Code and, for taxable years ending on or after | ||||||
19 | December 31, 2008, any amount included in gross income | ||||||
20 | under Section 87 of the Internal Revenue Code; the | ||||||
21 | provisions of this
subparagraph are exempt from the | ||||||
22 | provisions of Section 250; | ||||||
23 | (M) An amount equal to those dividends included in | ||||||
24 | such total
which were paid by a corporation which | ||||||
25 | conducts business operations in a River Edge | ||||||
26 | Redevelopment Zone or zones created under the River |
| |||||||
| |||||||
1 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
2 | all of its operations in a River Edge Redevelopment | ||||||
3 | Zone or zones. This subparagraph (M) is exempt from the | ||||||
4 | provisions of Section 250; | ||||||
5 | (N) An amount equal to any contribution made to a | ||||||
6 | job training
project established pursuant to the Tax | ||||||
7 | Increment Allocation
Redevelopment Act; | ||||||
8 | (O) An amount equal to those dividends included in | ||||||
9 | such total
that were paid by a corporation that | ||||||
10 | conducts business operations in a
federally designated | ||||||
11 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
12 | High Impact Business located in Illinois; provided | ||||||
13 | that dividends eligible
for the deduction provided in | ||||||
14 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
15 | shall not be eligible for the deduction provided under | ||||||
16 | this
subparagraph (O); | ||||||
17 | (P) An amount equal to the amount of the deduction | ||||||
18 | used to compute the
federal income tax credit for | ||||||
19 | restoration of substantial amounts held under
claim of | ||||||
20 | right for the taxable year pursuant to Section 1341 of | ||||||
21 | the
Internal Revenue Code; | ||||||
22 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
23 | equal to the
amount of any
(i) distributions, to the | ||||||
24 | extent includible in gross income for
federal income | ||||||
25 | tax purposes, made to the taxpayer because of
his or | ||||||
26 | her status as a victim of
persecution for racial or |
| |||||||
| |||||||
1 | religious reasons by Nazi Germany or any other Axis
| ||||||
2 | regime or as an heir of the victim and (ii) items
of | ||||||
3 | income, to the extent
includible in gross income for | ||||||
4 | federal income tax purposes, attributable to,
derived | ||||||
5 | from or in any way related to assets stolen from, | ||||||
6 | hidden from, or
otherwise lost to a victim of
| ||||||
7 | persecution for racial or religious reasons by Nazi
| ||||||
8 | Germany or any other Axis regime
immediately prior to, | ||||||
9 | during, and immediately after World War II, including,
| ||||||
10 | but
not limited to, interest on the proceeds receivable | ||||||
11 | as insurance
under policies issued to a victim of | ||||||
12 | persecution for racial or religious
reasons by Nazi | ||||||
13 | Germany or any other Axis regime by European insurance
| ||||||
14 | companies
immediately prior to and during World War II;
| ||||||
15 | provided, however, this subtraction from federal | ||||||
16 | adjusted gross income does not
apply to assets acquired | ||||||
17 | with such assets or with the proceeds from the sale of
| ||||||
18 | such assets; provided, further, this paragraph shall | ||||||
19 | only apply to a taxpayer
who was the first recipient of | ||||||
20 | such assets after their recovery and who is a
victim of
| ||||||
21 | persecution for racial or religious reasons
by Nazi | ||||||
22 | Germany or any other Axis regime or as an heir of the | ||||||
23 | victim. The
amount of and the eligibility for any | ||||||
24 | public assistance, benefit, or
similar entitlement is | ||||||
25 | not affected by the inclusion of items (i) and (ii) of
| ||||||
26 | this paragraph in gross income for federal income tax |
| |||||||
| |||||||
1 | purposes.
This paragraph is exempt from the provisions | ||||||
2 | of Section 250; | ||||||
3 | (R) For taxable years 2001 and thereafter, for the | ||||||
4 | taxable year in
which the bonus depreciation deduction
| ||||||
5 | is taken on the taxpayer's federal income tax return | ||||||
6 | under
subsection (k) of Section 168 of the Internal | ||||||
7 | Revenue Code and for each
applicable taxable year | ||||||
8 | thereafter, an amount equal to "x", where: | ||||||
9 | (1) "y" equals the amount of the depreciation | ||||||
10 | deduction taken for the
taxable year
on the | ||||||
11 | taxpayer's federal income tax return on property | ||||||
12 | for which the bonus
depreciation deduction
was | ||||||
13 | taken in any year under subsection (k) of Section | ||||||
14 | 168 of the Internal
Revenue Code, but not including | ||||||
15 | the bonus depreciation deduction; | ||||||
16 | (2) for taxable years ending on or before | ||||||
17 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
18 | and then divided by 70 (or "y"
multiplied by | ||||||
19 | 0.429); and | ||||||
20 | (3) for taxable years ending after December | ||||||
21 | 31, 2005: | ||||||
22 | (i) for property on which a bonus | ||||||
23 | depreciation deduction of 30% of the adjusted | ||||||
24 | basis was taken, "x" equals "y" multiplied by | ||||||
25 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
26 | 0.429); and |
| |||||||
| |||||||
1 | (ii) for property on which a bonus | ||||||
2 | depreciation deduction of 50% of the adjusted | ||||||
3 | basis was taken, "x" equals "y" multiplied by | ||||||
4 | 1.0. | ||||||
5 | The aggregate amount deducted under this | ||||||
6 | subparagraph in all taxable
years for any one piece of | ||||||
7 | property may not exceed the amount of the bonus
| ||||||
8 | depreciation deduction
taken on that property on the | ||||||
9 | taxpayer's federal income tax return under
subsection | ||||||
10 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
11 | subparagraph (R) is exempt from the provisions of | ||||||
12 | Section 250; | ||||||
13 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
14 | otherwise disposes of
property for which the taxpayer | ||||||
15 | was required in any taxable year to make an
addition | ||||||
16 | modification under subparagraph (G-10), then an amount | ||||||
17 | equal to that
addition modification. | ||||||
18 | If the taxpayer continues to own property through | ||||||
19 | the last day of the last tax year for which the | ||||||
20 | taxpayer may claim a depreciation deduction for | ||||||
21 | federal income tax purposes and for which the taxpayer | ||||||
22 | was required in any taxable year to make an addition | ||||||
23 | modification under subparagraph (G-10), then an amount | ||||||
24 | equal to that addition modification.
| ||||||
25 | The taxpayer is allowed to take the deduction under | ||||||
26 | this subparagraph
only once with respect to any one |
| |||||||
| |||||||
1 | piece of property. | ||||||
2 | This subparagraph (S) is exempt from the | ||||||
3 | provisions of Section 250; | ||||||
4 | (T) The amount of (i) any interest income (net of | ||||||
5 | the deductions allocable thereto) taken into account | ||||||
6 | for the taxable year with respect to a transaction with | ||||||
7 | a taxpayer that is required to make an addition | ||||||
8 | modification with respect to such transaction under | ||||||
9 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
10 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
11 | the amount of such addition modification and
(ii) any | ||||||
12 | income from intangible property (net of the deductions | ||||||
13 | allocable thereto) taken into account for the taxable | ||||||
14 | year with respect to a transaction with a taxpayer that | ||||||
15 | is required to make an addition modification with | ||||||
16 | respect to such transaction under Section | ||||||
17 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
18 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
19 | addition modification. This subparagraph (T) is exempt | ||||||
20 | from the provisions of Section 250;
| ||||||
21 | (U) An amount equal to the interest income taken | ||||||
22 | into account for the taxable year (net of the | ||||||
23 | deductions allocable thereto) with respect to | ||||||
24 | transactions with (i) a foreign person who would be a | ||||||
25 | member of the taxpayer's unitary business group but for | ||||||
26 | the fact the foreign person's business activity |
| |||||||
| |||||||
1 | outside the United States is 80% or more of that | ||||||
2 | person's total business activity and (ii) for taxable | ||||||
3 | years ending on or after December 31, 2008, to a person | ||||||
4 | who would be a member of the same unitary business | ||||||
5 | group but for the fact that the person is prohibited | ||||||
6 | under Section 1501(a)(27) from being included in the | ||||||
7 | unitary business group because he or she is ordinarily | ||||||
8 | required to apportion business income under different | ||||||
9 | subsections of Section 304, but not to exceed the | ||||||
10 | addition modification required to be made for the same | ||||||
11 | taxable year under Section 203(c)(2)(G-12) for | ||||||
12 | interest paid, accrued, or incurred, directly or | ||||||
13 | indirectly, to the same person. This subparagraph (U) | ||||||
14 | is exempt from the provisions of Section 250; | ||||||
15 | (V) An amount equal to the income from intangible | ||||||
16 | property taken into account for the taxable year (net | ||||||
17 | of the deductions allocable thereto) with respect to | ||||||
18 | transactions with (i) a foreign person who would be a | ||||||
19 | member of the taxpayer's unitary business group but for | ||||||
20 | the fact that the foreign person's business activity | ||||||
21 | outside the United States is 80% or more of that | ||||||
22 | person's total business activity and (ii) for taxable | ||||||
23 | years ending on or after December 31, 2008, to a person | ||||||
24 | who would be a member of the same unitary business | ||||||
25 | group but for the fact that the person is prohibited | ||||||
26 | under Section 1501(a)(27) from being included in the |
| |||||||
| |||||||
1 | unitary business group because he or she is ordinarily | ||||||
2 | required to apportion business income under different | ||||||
3 | subsections of Section 304, but not to exceed the | ||||||
4 | addition modification required to be made for the same | ||||||
5 | taxable year under Section 203(c)(2)(G-13) for | ||||||
6 | intangible expenses and costs paid, accrued, or | ||||||
7 | incurred, directly or indirectly, to the same foreign | ||||||
8 | person. This subparagraph (V) is exempt from the | ||||||
9 | provisions of Section 250;
| ||||||
10 | (W) in the case of an estate, an amount equal to | ||||||
11 | all amounts included in such total pursuant to the | ||||||
12 | provisions of Section 111 of the Internal Revenue Code | ||||||
13 | as a recovery of items previously deducted by the | ||||||
14 | decedent from adjusted gross income in the computation | ||||||
15 | of taxable income. This subparagraph (W) is exempt from | ||||||
16 | Section 250; | ||||||
17 | (X) an amount equal to the refund included in such | ||||||
18 | total of any tax deducted for federal income tax | ||||||
19 | purposes, to the extent that deduction was added back | ||||||
20 | under subparagraph (F). This subparagraph (X) is | ||||||
21 | exempt from the provisions of Section 250; and | ||||||
22 | (Y) For taxable years ending on or after December | ||||||
23 | 31, 2011, in the case of a taxpayer who was required to | ||||||
24 | add back any insurance premiums under Section | ||||||
25 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
26 | that part of a reimbursement received from the |
| |||||||
| |||||||
1 | insurance company equal to the amount of the expense or | ||||||
2 | loss (including expenses incurred by the insurance | ||||||
3 | company) that would have been taken into account as a | ||||||
4 | deduction for federal income tax purposes if the | ||||||
5 | expense or loss had been uninsured. If a taxpayer makes | ||||||
6 | the election provided for by this subparagraph (Y), the | ||||||
7 | insurer to which the premiums were paid must add back | ||||||
8 | to income the amount subtracted by the taxpayer | ||||||
9 | pursuant to this subparagraph (Y). This subparagraph | ||||||
10 | (Y) is exempt from the provisions of Section 250. | ||||||
11 | (3) Limitation. The amount of any modification | ||||||
12 | otherwise required
under this subsection shall, under | ||||||
13 | regulations prescribed by the
Department, be adjusted by | ||||||
14 | any amounts included therein which were
properly paid, | ||||||
15 | credited, or required to be distributed, or permanently set
| ||||||
16 | aside for charitable purposes pursuant to Internal Revenue | ||||||
17 | Code Section
642(c) during the taxable year.
| ||||||
18 | (d) Partnerships. | ||||||
19 | (1) In general. In the case of a partnership, base | ||||||
20 | income means an
amount equal to the taxpayer's taxable | ||||||
21 | income for the taxable year as
modified by paragraph (2). | ||||||
22 | (2) Modifications. The taxable income referred to in | ||||||
23 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
24 | of the following amounts: | ||||||
25 | (A) An amount equal to all amounts paid or accrued |
| |||||||
| |||||||
1 | to the taxpayer as
interest or dividends during the | ||||||
2 | taxable year to the extent excluded from
gross income | ||||||
3 | in the computation of taxable income; | ||||||
4 | (B) An amount equal to the amount of tax imposed by | ||||||
5 | this Act to the
extent deducted from gross income for | ||||||
6 | the taxable year; | ||||||
7 | (C) The amount of deductions allowed to the | ||||||
8 | partnership pursuant to
Section 707 (c) of the Internal | ||||||
9 | Revenue Code in calculating its taxable income; | ||||||
10 | (D) An amount equal to the amount of the capital | ||||||
11 | gain deduction
allowable under the Internal Revenue | ||||||
12 | Code, to the extent deducted from
gross income in the | ||||||
13 | computation of taxable income; | ||||||
14 | (D-5) For taxable years 2001 and thereafter, an | ||||||
15 | amount equal to the
bonus depreciation deduction taken | ||||||
16 | on the taxpayer's federal income tax return for the | ||||||
17 | taxable
year under subsection (k) of Section 168 of the | ||||||
18 | Internal Revenue Code; | ||||||
19 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
20 | or otherwise disposes of
property for which the | ||||||
21 | taxpayer was required in any taxable year to make an
| ||||||
22 | addition modification under subparagraph (D-5), then | ||||||
23 | an amount equal to the
aggregate amount of the | ||||||
24 | deductions taken in all taxable years
under | ||||||
25 | subparagraph (O) with respect to that property. | ||||||
26 | If the taxpayer continues to own property through |
| |||||||
| |||||||
1 | the last day of the last tax year for which the | ||||||
2 | taxpayer may claim a depreciation deduction for | ||||||
3 | federal income tax purposes and for which the taxpayer | ||||||
4 | was allowed in any taxable year to make a subtraction | ||||||
5 | modification under subparagraph (O), then an amount | ||||||
6 | equal to that subtraction modification.
| ||||||
7 | The taxpayer is required to make the addition | ||||||
8 | modification under this
subparagraph
only once with | ||||||
9 | respect to any one piece of property; | ||||||
10 | (D-7) An amount equal to the amount otherwise | ||||||
11 | allowed as a deduction in computing base income for | ||||||
12 | interest paid, accrued, or incurred, directly or | ||||||
13 | indirectly, (i) for taxable years ending on or after | ||||||
14 | December 31, 2004, to a foreign person who would be a | ||||||
15 | member of the same unitary business group but for the | ||||||
16 | fact the foreign person's business activity outside | ||||||
17 | the United States is 80% or more of the foreign | ||||||
18 | person's total business activity and (ii) for taxable | ||||||
19 | years ending on or after December 31, 2008, to a person | ||||||
20 | who would be a member of the same unitary business | ||||||
21 | group but for the fact that the person is prohibited | ||||||
22 | under Section 1501(a)(27) from being included in the | ||||||
23 | unitary business group because he or she is ordinarily | ||||||
24 | required to apportion business income under different | ||||||
25 | subsections of Section 304. The addition modification | ||||||
26 | required by this subparagraph shall be reduced to the |
| |||||||
| |||||||
1 | extent that dividends were included in base income of | ||||||
2 | the unitary group for the same taxable year and | ||||||
3 | received by the taxpayer or by a member of the | ||||||
4 | taxpayer's unitary business group (including amounts | ||||||
5 | included in gross income pursuant to Sections 951 | ||||||
6 | through 964 of the Internal Revenue Code and amounts | ||||||
7 | included in gross income under Section 78 of the | ||||||
8 | Internal Revenue Code) with respect to the stock of the | ||||||
9 | same person to whom the interest was paid, accrued, or | ||||||
10 | incurred.
| ||||||
11 | This paragraph shall not apply to the following:
| ||||||
12 | (i) an item of interest paid, accrued, or | ||||||
13 | incurred, directly or indirectly, to a person who | ||||||
14 | is subject in a foreign country or state, other | ||||||
15 | than a state which requires mandatory unitary | ||||||
16 | reporting, to a tax on or measured by net income | ||||||
17 | with respect to such interest; or | ||||||
18 | (ii) an item of interest paid, accrued, or | ||||||
19 | incurred, directly or indirectly, to a person if | ||||||
20 | the taxpayer can establish, based on a | ||||||
21 | preponderance of the evidence, both of the | ||||||
22 | following: | ||||||
23 | (a) the person, during the same taxable | ||||||
24 | year, paid, accrued, or incurred, the interest | ||||||
25 | to a person that is not a related member, and | ||||||
26 | (b) the transaction giving rise to the |
| |||||||
| |||||||
1 | interest expense between the taxpayer and the | ||||||
2 | person did not have as a principal purpose the | ||||||
3 | avoidance of Illinois income tax, and is paid | ||||||
4 | pursuant to a contract or agreement that | ||||||
5 | reflects an arm's-length interest rate and | ||||||
6 | terms; or
| ||||||
7 | (iii) the taxpayer can establish, based on | ||||||
8 | clear and convincing evidence, that the interest | ||||||
9 | paid, accrued, or incurred relates to a contract or | ||||||
10 | agreement entered into at arm's-length rates and | ||||||
11 | terms and the principal purpose for the payment is | ||||||
12 | not federal or Illinois tax avoidance; or
| ||||||
13 | (iv) an item of interest paid, accrued, or | ||||||
14 | incurred, directly or indirectly, to a person if | ||||||
15 | the taxpayer establishes by clear and convincing | ||||||
16 | evidence that the adjustments are unreasonable; or | ||||||
17 | if the taxpayer and the Director agree in writing | ||||||
18 | to the application or use of an alternative method | ||||||
19 | of apportionment under Section 304(f).
| ||||||
20 | Nothing in this subsection shall preclude the | ||||||
21 | Director from making any other adjustment | ||||||
22 | otherwise allowed under Section 404 of this Act for | ||||||
23 | any tax year beginning after the effective date of | ||||||
24 | this amendment provided such adjustment is made | ||||||
25 | pursuant to regulation adopted by the Department | ||||||
26 | and such regulations provide methods and standards |
| |||||||
| |||||||
1 | by which the Department will utilize its authority | ||||||
2 | under Section 404 of this Act; and
| ||||||
3 | (D-8) An amount equal to the amount of intangible | ||||||
4 | expenses and costs otherwise allowed as a deduction in | ||||||
5 | computing base income, and that were paid, accrued, or | ||||||
6 | incurred, directly or indirectly, (i) for taxable | ||||||
7 | years ending on or after December 31, 2004, to a | ||||||
8 | foreign person who would be a member of the same | ||||||
9 | unitary business group but for the fact that the | ||||||
10 | foreign person's business activity outside the United | ||||||
11 | States is 80% or more of that person's total business | ||||||
12 | activity and (ii) for taxable years ending on or after | ||||||
13 | December 31, 2008, to a person who would be a member of | ||||||
14 | the same unitary business group but for the fact that | ||||||
15 | the person is prohibited under Section 1501(a)(27) | ||||||
16 | from being included in the unitary business group | ||||||
17 | because he or she is ordinarily required to apportion | ||||||
18 | business income under different subsections of Section | ||||||
19 | 304. The addition modification required by this | ||||||
20 | subparagraph shall be reduced to the extent that | ||||||
21 | dividends were included in base income of the unitary | ||||||
22 | group for the same taxable year and received by the | ||||||
23 | taxpayer or by a member of the taxpayer's unitary | ||||||
24 | business group (including amounts included in gross | ||||||
25 | income pursuant to Sections 951 through 964 of the | ||||||
26 | Internal Revenue Code and amounts included in gross |
| |||||||
| |||||||
1 | income under Section 78 of the Internal Revenue Code) | ||||||
2 | with respect to the stock of the same person to whom | ||||||
3 | the intangible expenses and costs were directly or | ||||||
4 | indirectly paid, incurred or accrued. The preceding | ||||||
5 | sentence shall not apply to the extent that the same | ||||||
6 | dividends caused a reduction to the addition | ||||||
7 | modification required under Section 203(d)(2)(D-7) of | ||||||
8 | this Act. As used in this subparagraph, the term | ||||||
9 | "intangible expenses and costs" includes (1) expenses, | ||||||
10 | losses, and costs for, or related to, the direct or | ||||||
11 | indirect acquisition, use, maintenance or management, | ||||||
12 | ownership, sale, exchange, or any other disposition of | ||||||
13 | intangible property; (2) losses incurred, directly or | ||||||
14 | indirectly, from factoring transactions or discounting | ||||||
15 | transactions; (3) royalty, patent, technical, and | ||||||
16 | copyright fees; (4) licensing fees; and (5) other | ||||||
17 | similar expenses and costs. For purposes of this | ||||||
18 | subparagraph, "intangible property" includes patents, | ||||||
19 | patent applications, trade names, trademarks, service | ||||||
20 | marks, copyrights, mask works, trade secrets, and | ||||||
21 | similar types of intangible assets; | ||||||
22 | This paragraph shall not apply to the following: | ||||||
23 | (i) any item of intangible expenses or costs | ||||||
24 | paid, accrued, or incurred, directly or | ||||||
25 | indirectly, from a transaction with a person who is | ||||||
26 | subject in a foreign country or state, other than a |
| |||||||
| |||||||
1 | state which requires mandatory unitary reporting, | ||||||
2 | to a tax on or measured by net income with respect | ||||||
3 | to such item; or | ||||||
4 | (ii) any item of intangible expense or cost | ||||||
5 | paid, accrued, or incurred, directly or | ||||||
6 | indirectly, if the taxpayer can establish, based | ||||||
7 | on a preponderance of the evidence, both of the | ||||||
8 | following: | ||||||
9 | (a) the person during the same taxable | ||||||
10 | year paid, accrued, or incurred, the | ||||||
11 | intangible expense or cost to a person that is | ||||||
12 | not a related member, and | ||||||
13 | (b) the transaction giving rise to the | ||||||
14 | intangible expense or cost between the | ||||||
15 | taxpayer and the person did not have as a | ||||||
16 | principal purpose the avoidance of Illinois | ||||||
17 | income tax, and is paid pursuant to a contract | ||||||
18 | or agreement that reflects arm's-length terms; | ||||||
19 | or | ||||||
20 | (iii) any item of intangible expense or cost | ||||||
21 | paid, accrued, or incurred, directly or | ||||||
22 | indirectly, from a transaction with a person if the | ||||||
23 | taxpayer establishes by clear and convincing | ||||||
24 | evidence, that the adjustments are unreasonable; | ||||||
25 | or if the taxpayer and the Director agree in | ||||||
26 | writing to the application or use of an alternative |
| |||||||
| |||||||
1 | method of apportionment under Section 304(f);
| ||||||
2 | Nothing in this subsection shall preclude the | ||||||
3 | Director from making any other adjustment | ||||||
4 | otherwise allowed under Section 404 of this Act for | ||||||
5 | any tax year beginning after the effective date of | ||||||
6 | this amendment provided such adjustment is made | ||||||
7 | pursuant to regulation adopted by the Department | ||||||
8 | and such regulations provide methods and standards | ||||||
9 | by which the Department will utilize its authority | ||||||
10 | under Section 404 of this Act;
| ||||||
11 | (D-9) For taxable years ending on or after December | ||||||
12 | 31, 2008, an amount equal to the amount of insurance | ||||||
13 | premium expenses and costs otherwise allowed as a | ||||||
14 | deduction in computing base income, and that were paid, | ||||||
15 | accrued, or incurred, directly or indirectly, to a | ||||||
16 | person who would be a member of the same unitary | ||||||
17 | business group but for the fact that the person is | ||||||
18 | prohibited under Section 1501(a)(27) from being | ||||||
19 | included in the unitary business group because he or | ||||||
20 | she is ordinarily required to apportion business | ||||||
21 | income under different subsections of Section 304. The | ||||||
22 | addition modification required by this subparagraph | ||||||
23 | shall be reduced to the extent that dividends were | ||||||
24 | included in base income of the unitary group for the | ||||||
25 | same taxable year and received by the taxpayer or by a | ||||||
26 | member of the taxpayer's unitary business group |
| |||||||
| |||||||
1 | (including amounts included in gross income under | ||||||
2 | Sections 951 through 964 of the Internal Revenue Code | ||||||
3 | and amounts included in gross income under Section 78 | ||||||
4 | of the Internal Revenue Code) with respect to the stock | ||||||
5 | of the same person to whom the premiums and costs were | ||||||
6 | directly or indirectly paid, incurred, or accrued. The | ||||||
7 | preceding sentence does not apply to the extent that | ||||||
8 | the same dividends caused a reduction to the addition | ||||||
9 | modification required under Section 203(d)(2)(D-7) or | ||||||
10 | Section 203(d)(2)(D-8) of this Act; | ||||||
11 | (D-10) An amount equal to the credit allowable to | ||||||
12 | the taxpayer under Section 218(a) of this Act, | ||||||
13 | determined without regard to Section 218(c) of this | ||||||
14 | Act; | ||||||
15 | and by deducting from the total so obtained the following | ||||||
16 | amounts: | ||||||
17 | (E) The valuation limitation amount; | ||||||
18 | (F) An amount equal to the amount of any tax | ||||||
19 | imposed by this Act which
was refunded to the taxpayer | ||||||
20 | and included in such total for the taxable year; | ||||||
21 | (G) An amount equal to all amounts included in | ||||||
22 | taxable income as
modified by subparagraphs (A), (B), | ||||||
23 | (C) and (D) which are exempt from
taxation by this | ||||||
24 | State either by reason of its statutes or Constitution | ||||||
25 | or
by reason of
the Constitution, treaties or statutes | ||||||
26 | of the United States;
provided that, in the case of any |
| |||||||
| |||||||
1 | statute of this State that exempts income
derived from | ||||||
2 | bonds or other obligations from the tax imposed under | ||||||
3 | this Act,
the amount exempted shall be the interest net | ||||||
4 | of bond premium amortization; | ||||||
5 | (H) Any income of the partnership which | ||||||
6 | constitutes personal service
income as defined in | ||||||
7 | Section 1348 (b) (1) of the Internal Revenue Code (as
| ||||||
8 | in effect December 31, 1981) or a reasonable allowance | ||||||
9 | for compensation
paid or accrued for services rendered | ||||||
10 | by partners to the partnership,
whichever is greater; | ||||||
11 | this subparagraph (H) is exempt from the provisions of | ||||||
12 | Section 250; | ||||||
13 | (I) An amount equal to all amounts of income | ||||||
14 | distributable to an entity
subject to the Personal | ||||||
15 | Property Tax Replacement Income Tax imposed by
| ||||||
16 | subsections (c) and (d) of Section 201 of this Act | ||||||
17 | including amounts
distributable to organizations | ||||||
18 | exempt from federal income tax by reason of
Section | ||||||
19 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
20 | (I) is exempt from the provisions of Section 250; | ||||||
21 | (J) With the exception of any amounts subtracted | ||||||
22 | under subparagraph
(G),
an amount equal to the sum of | ||||||
23 | all amounts disallowed as deductions
by (i) Sections | ||||||
24 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
25 | and all amounts of expenses allocable to
interest and | ||||||
26 | disallowed as deductions by Section 265(1) of the |
| |||||||
| |||||||
1 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
2 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
3 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
4 | Code, plus, (iii) for taxable years ending on or after | ||||||
5 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
6 | Revenue Code and, for taxable years ending on or after | ||||||
7 | December 31, 2008, any amount included in gross income | ||||||
8 | under Section 87 of the Internal Revenue Code; the | ||||||
9 | provisions of this
subparagraph are exempt from the | ||||||
10 | provisions of Section 250; | ||||||
11 | (K) An amount equal to those dividends included in | ||||||
12 | such total which were
paid by a corporation which | ||||||
13 | conducts business operations in a River Edge | ||||||
14 | Redevelopment Zone or zones created under the River | ||||||
15 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
16 | all of its operations
from a River Edge Redevelopment | ||||||
17 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
18 | provisions of Section 250; | ||||||
19 | (L) An amount equal to any contribution made to a | ||||||
20 | job training project
established pursuant to the Real | ||||||
21 | Property Tax Increment Allocation
Redevelopment Act; | ||||||
22 | (M) An amount equal to those dividends included in | ||||||
23 | such total
that were paid by a corporation that | ||||||
24 | conducts business operations in a
federally designated | ||||||
25 | Foreign Trade Zone or Sub-Zone and that is designated a
| ||||||
26 | High Impact Business located in Illinois; provided |
| |||||||
| |||||||
1 | that dividends eligible
for the deduction provided in | ||||||
2 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
3 | shall not be eligible for the deduction provided under | ||||||
4 | this
subparagraph (M); | ||||||
5 | (N) An amount equal to the amount of the deduction | ||||||
6 | used to compute the
federal income tax credit for | ||||||
7 | restoration of substantial amounts held under
claim of | ||||||
8 | right for the taxable year pursuant to Section 1341 of | ||||||
9 | the
Internal Revenue Code; | ||||||
10 | (O) For taxable years 2001 and thereafter, for the | ||||||
11 | taxable year in
which the bonus depreciation deduction
| ||||||
12 | is taken on the taxpayer's federal income tax return | ||||||
13 | under
subsection (k) of Section 168 of the Internal | ||||||
14 | Revenue Code and for each
applicable taxable year | ||||||
15 | thereafter, an amount equal to "x", where: | ||||||
16 | (1) "y" equals the amount of the depreciation | ||||||
17 | deduction taken for the
taxable year
on the | ||||||
18 | taxpayer's federal income tax return on property | ||||||
19 | for which the bonus
depreciation deduction
was | ||||||
20 | taken in any year under subsection (k) of Section | ||||||
21 | 168 of the Internal
Revenue Code, but not including | ||||||
22 | the bonus depreciation deduction; | ||||||
23 | (2) for taxable years ending on or before | ||||||
24 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
25 | and then divided by 70 (or "y"
multiplied by | ||||||
26 | 0.429); and |
| |||||||
| |||||||
1 | (3) for taxable years ending after December | ||||||
2 | 31, 2005: | ||||||
3 | (i) for property on which a bonus | ||||||
4 | depreciation deduction of 30% of the adjusted | ||||||
5 | basis was taken, "x" equals "y" multiplied by | ||||||
6 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
7 | 0.429); and | ||||||
8 | (ii) for property on which a bonus | ||||||
9 | depreciation deduction of 50% of the adjusted | ||||||
10 | basis was taken, "x" equals "y" multiplied by | ||||||
11 | 1.0. | ||||||
12 | The aggregate amount deducted under this | ||||||
13 | subparagraph in all taxable
years for any one piece of | ||||||
14 | property may not exceed the amount of the bonus
| ||||||
15 | depreciation deduction
taken on that property on the | ||||||
16 | taxpayer's federal income tax return under
subsection | ||||||
17 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
18 | subparagraph (O) is exempt from the provisions of | ||||||
19 | Section 250; | ||||||
20 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
21 | otherwise disposes of
property for which the taxpayer | ||||||
22 | was required in any taxable year to make an
addition | ||||||
23 | modification under subparagraph (D-5), then an amount | ||||||
24 | equal to that
addition modification. | ||||||
25 | If the taxpayer continues to own property through | ||||||
26 | the last day of the last tax year for which the |
| |||||||
| |||||||
1 | taxpayer may claim a depreciation deduction for | ||||||
2 | federal income tax purposes and for which the taxpayer | ||||||
3 | was required in any taxable year to make an addition | ||||||
4 | modification under subparagraph (D-5), then an amount | ||||||
5 | equal to that addition modification.
| ||||||
6 | The taxpayer is allowed to take the deduction under | ||||||
7 | this subparagraph
only once with respect to any one | ||||||
8 | piece of property. | ||||||
9 | This subparagraph (P) is exempt from the | ||||||
10 | provisions of Section 250; | ||||||
11 | (Q) The amount of (i) any interest income (net of | ||||||
12 | the deductions allocable thereto) taken into account | ||||||
13 | for the taxable year with respect to a transaction with | ||||||
14 | a taxpayer that is required to make an addition | ||||||
15 | modification with respect to such transaction under | ||||||
16 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
17 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
18 | the amount of such addition modification and
(ii) any | ||||||
19 | income from intangible property (net of the deductions | ||||||
20 | allocable thereto) taken into account for the taxable | ||||||
21 | year with respect to a transaction with a taxpayer that | ||||||
22 | is required to make an addition modification with | ||||||
23 | respect to such transaction under Section | ||||||
24 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
25 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
26 | addition modification. This subparagraph (Q) is exempt |
| |||||||
| |||||||
1 | from Section 250;
| ||||||
2 | (R) An amount equal to the interest income taken | ||||||
3 | into account for the taxable year (net of the | ||||||
4 | deductions allocable thereto) with respect to | ||||||
5 | transactions with (i) a foreign person who would be a | ||||||
6 | member of the taxpayer's unitary business group but for | ||||||
7 | the fact that the foreign person's business activity | ||||||
8 | outside the United States is 80% or more of that | ||||||
9 | person's total business activity and (ii) for taxable | ||||||
10 | years ending on or after December 31, 2008, to a person | ||||||
11 | who would be a member of the same unitary business | ||||||
12 | group but for the fact that the person is prohibited | ||||||
13 | under Section 1501(a)(27) from being included in the | ||||||
14 | unitary business group because he or she is ordinarily | ||||||
15 | required to apportion business income under different | ||||||
16 | subsections of Section 304, but not to exceed the | ||||||
17 | addition modification required to be made for the same | ||||||
18 | taxable year under Section 203(d)(2)(D-7) for interest | ||||||
19 | paid, accrued, or incurred, directly or indirectly, to | ||||||
20 | the same person. This subparagraph (R) is exempt from | ||||||
21 | Section 250; | ||||||
22 | (S) An amount equal to the income from intangible | ||||||
23 | property taken into account for the taxable year (net | ||||||
24 | of the deductions allocable thereto) with respect to | ||||||
25 | transactions with (i) a foreign person who would be a | ||||||
26 | member of the taxpayer's unitary business group but for |
| |||||||
| |||||||
1 | the fact that the foreign person's business activity | ||||||
2 | outside the United States is 80% or more of that | ||||||
3 | person's total business activity and (ii) for taxable | ||||||
4 | years ending on or after December 31, 2008, to a person | ||||||
5 | who would be a member of the same unitary business | ||||||
6 | group but for the fact that the person is prohibited | ||||||
7 | under Section 1501(a)(27) from being included in the | ||||||
8 | unitary business group because he or she is ordinarily | ||||||
9 | required to apportion business income under different | ||||||
10 | subsections of Section 304, but not to exceed the | ||||||
11 | addition modification required to be made for the same | ||||||
12 | taxable year under Section 203(d)(2)(D-8) for | ||||||
13 | intangible expenses and costs paid, accrued, or | ||||||
14 | incurred, directly or indirectly, to the same person. | ||||||
15 | This subparagraph (S) is exempt from Section 250; and
| ||||||
16 | (T) For taxable years ending on or after December | ||||||
17 | 31, 2011, in the case of a taxpayer who was required to | ||||||
18 | add back any insurance premiums under Section | ||||||
19 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
20 | that part of a reimbursement received from the | ||||||
21 | insurance company equal to the amount of the expense or | ||||||
22 | loss (including expenses incurred by the insurance | ||||||
23 | company) that would have been taken into account as a | ||||||
24 | deduction for federal income tax purposes if the | ||||||
25 | expense or loss had been uninsured. If a taxpayer makes | ||||||
26 | the election provided for by this subparagraph (T), the |
| |||||||
| |||||||
1 | insurer to which the premiums were paid must add back | ||||||
2 | to income the amount subtracted by the taxpayer | ||||||
3 | pursuant to this subparagraph (T). This subparagraph | ||||||
4 | (T) is exempt from the provisions of Section 250.
| ||||||
5 | (e) Gross income; adjusted gross income; taxable income. | ||||||
6 | (1) In general. Subject to the provisions of paragraph | ||||||
7 | (2) and
subsection (b) (3), for purposes of this Section | ||||||
8 | and Section 803(e), a
taxpayer's gross income, adjusted | ||||||
9 | gross income, or taxable income for
the taxable year shall | ||||||
10 | mean the amount of gross income, adjusted gross
income or | ||||||
11 | taxable income properly reportable for federal income tax
| ||||||
12 | purposes for the taxable year under the provisions of the | ||||||
13 | Internal
Revenue Code. Taxable income may be less than | ||||||
14 | zero. However, for taxable
years ending on or after | ||||||
15 | December 31, 1986, net operating loss
carryforwards from | ||||||
16 | taxable years ending prior to December 31, 1986, may not
| ||||||
17 | exceed the sum of federal taxable income for the taxable | ||||||
18 | year before net
operating loss deduction, plus the excess | ||||||
19 | of addition modifications over
subtraction modifications | ||||||
20 | for the taxable year. For taxable years ending
prior to | ||||||
21 | December 31, 1986, taxable income may never be an amount in | ||||||
22 | excess
of the net operating loss for the taxable year as | ||||||
23 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
24 | Internal Revenue Code, provided that when
taxable income of | ||||||
25 | a corporation (other than a Subchapter S corporation),
|
| |||||||
| |||||||
1 | trust, or estate is less than zero and addition | ||||||
2 | modifications, other than
those provided by subparagraph | ||||||
3 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
4 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
5 | trusts and estates, exceed subtraction modifications, an | ||||||
6 | addition
modification must be made under those | ||||||
7 | subparagraphs for any other taxable
year to which the | ||||||
8 | taxable income less than zero (net operating loss) is
| ||||||
9 | applied under Section 172 of the Internal Revenue Code or | ||||||
10 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
11 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
12 | Revenue Code. | ||||||
13 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
14 | subsection,
the taxable income properly reportable for | ||||||
15 | federal income tax purposes
shall mean: | ||||||
16 | (A) Certain life insurance companies. In the case | ||||||
17 | of a life
insurance company subject to the tax imposed | ||||||
18 | by Section 801 of the
Internal Revenue Code, life | ||||||
19 | insurance company taxable income, plus the
amount of | ||||||
20 | distribution from pre-1984 policyholder surplus | ||||||
21 | accounts as
calculated under Section 815a of the | ||||||
22 | Internal Revenue Code; | ||||||
23 | (B) Certain other insurance companies. In the case | ||||||
24 | of mutual
insurance companies subject to the tax | ||||||
25 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
26 | insurance company taxable income; |
| |||||||
| |||||||
1 | (C) Regulated investment companies. In the case of | ||||||
2 | a regulated
investment company subject to the tax | ||||||
3 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
4 | investment company taxable income; | ||||||
5 | (D) Real estate investment trusts. In the case of a | ||||||
6 | real estate
investment trust subject to the tax imposed | ||||||
7 | by Section 857 of the
Internal Revenue Code, real | ||||||
8 | estate investment trust taxable income; | ||||||
9 | (E) Consolidated corporations. In the case of a | ||||||
10 | corporation which
is a member of an affiliated group of | ||||||
11 | corporations filing a consolidated
income tax return | ||||||
12 | for the taxable year for federal income tax purposes,
| ||||||
13 | taxable income determined as if such corporation had | ||||||
14 | filed a separate
return for federal income tax purposes | ||||||
15 | for the taxable year and each
preceding taxable year | ||||||
16 | for which it was a member of an affiliated group.
For | ||||||
17 | purposes of this subparagraph, the taxpayer's separate | ||||||
18 | taxable
income shall be determined as if the election | ||||||
19 | provided by Section
243(b) (2) of the Internal Revenue | ||||||
20 | Code had been in effect for all such years; | ||||||
21 | (F) Cooperatives. In the case of a cooperative | ||||||
22 | corporation or
association, the taxable income of such | ||||||
23 | organization determined in
accordance with the | ||||||
24 | provisions of Section 1381 through 1388 of the
Internal | ||||||
25 | Revenue Code, but without regard to the prohibition | ||||||
26 | against offsetting losses from patronage activities |
| |||||||
| |||||||
1 | against income from nonpatronage activities; except | ||||||
2 | that a cooperative corporation or association may make | ||||||
3 | an election to follow its federal income tax treatment | ||||||
4 | of patronage losses and nonpatronage losses. In the | ||||||
5 | event such election is made, such losses shall be | ||||||
6 | computed and carried over in a manner consistent with | ||||||
7 | subsection (a) of Section 207 of this Act and | ||||||
8 | apportioned by the apportionment factor reported by | ||||||
9 | the cooperative on its Illinois income tax return filed | ||||||
10 | for the taxable year in which the losses are incurred. | ||||||
11 | The election shall be effective for all taxable years | ||||||
12 | with original returns due on or after the date of the | ||||||
13 | election. In addition, the cooperative may file an | ||||||
14 | amended return or returns, as allowed under this Act, | ||||||
15 | to provide that the election shall be effective for | ||||||
16 | losses incurred or carried forward for taxable years | ||||||
17 | occurring prior to the date of the election. Once made, | ||||||
18 | the election may only be revoked upon approval of the | ||||||
19 | Director. The Department shall adopt rules setting | ||||||
20 | forth requirements for documenting the elections and | ||||||
21 | any resulting Illinois net loss and the standards to be | ||||||
22 | used by the Director in evaluating requests to revoke | ||||||
23 | elections. Public Act 96-932 is declaratory of | ||||||
24 | existing law; | ||||||
25 | (G) Subchapter S corporations. In the case of: (i) | ||||||
26 | a Subchapter S
corporation for which there is in effect |
| |||||||
| |||||||
1 | an election for the taxable year
under Section 1362 of | ||||||
2 | the Internal Revenue Code, the taxable income of such
| ||||||
3 | corporation determined in accordance with Section | ||||||
4 | 1363(b) of the Internal
Revenue Code, except that | ||||||
5 | taxable income shall take into
account those items | ||||||
6 | which are required by Section 1363(b)(1) of the
| ||||||
7 | Internal Revenue Code to be separately stated; and (ii) | ||||||
8 | a Subchapter
S corporation for which there is in effect | ||||||
9 | a federal election to opt out of
the provisions of the | ||||||
10 | Subchapter S Revision Act of 1982 and have applied
| ||||||
11 | instead the prior federal Subchapter S rules as in | ||||||
12 | effect on July 1, 1982,
the taxable income of such | ||||||
13 | corporation determined in accordance with the
federal | ||||||
14 | Subchapter S rules as in effect on July 1, 1982; and | ||||||
15 | (H) Partnerships. In the case of a partnership, | ||||||
16 | taxable income
determined in accordance with Section | ||||||
17 | 703 of the Internal Revenue Code,
except that taxable | ||||||
18 | income shall take into account those items which are
| ||||||
19 | required by Section 703(a)(1) to be separately stated | ||||||
20 | but which would be
taken into account by an individual | ||||||
21 | in calculating his taxable income. | ||||||
22 | (3) Recapture of business expenses on disposition of | ||||||
23 | asset or business. Notwithstanding any other law to the | ||||||
24 | contrary, if in prior years income from an asset or | ||||||
25 | business has been classified as business income and in a | ||||||
26 | later year is demonstrated to be non-business income, then |
| |||||||
| |||||||
1 | all expenses, without limitation, deducted in such later | ||||||
2 | year and in the 2 immediately preceding taxable years | ||||||
3 | related to that asset or business that generated the | ||||||
4 | non-business income shall be added back and recaptured as | ||||||
5 | business income in the year of the disposition of the asset | ||||||
6 | or business. Such amount shall be apportioned to Illinois | ||||||
7 | using the greater of the apportionment fraction computed | ||||||
8 | for the business under Section 304 of this Act for the | ||||||
9 | taxable year or the average of the apportionment fractions | ||||||
10 | computed for the business under Section 304 of this Act for | ||||||
11 | the taxable year and for the 2 immediately preceding | ||||||
12 | taxable years.
| ||||||
13 | (f) Valuation limitation amount. | ||||||
14 | (1) In general. The valuation limitation amount | ||||||
15 | referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||||||
16 | (d)(2) (E) is an amount equal to: | ||||||
17 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
18 | amounts (to the
extent consisting of gain reportable | ||||||
19 | under the provisions of Section
1245 or 1250 of the | ||||||
20 | Internal Revenue Code) for all property in respect
of | ||||||
21 | which such gain was reported for the taxable year; plus | ||||||
22 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
23 | 1969 appreciation
amounts (to the extent consisting of | ||||||
24 | capital gain) for all property in
respect of which such | ||||||
25 | gain was reported for federal income tax purposes
for |
| |||||||
| |||||||
1 | the taxable year, or (ii) the net capital gain for the | ||||||
2 | taxable year,
reduced in either case by any amount of | ||||||
3 | such gain included in the amount
determined under | ||||||
4 | subsection (a) (2) (F) or (c) (2) (H). | ||||||
5 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
6 | (A) If the fair market value of property referred | ||||||
7 | to in paragraph
(1) was readily ascertainable on August | ||||||
8 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
9 | such property is the lesser of (i) the excess of
such | ||||||
10 | fair market value over the taxpayer's basis (for | ||||||
11 | determining gain)
for such property on that date | ||||||
12 | (determined under the Internal Revenue
Code as in | ||||||
13 | effect on that date), or (ii) the total gain realized | ||||||
14 | and
reportable for federal income tax purposes in | ||||||
15 | respect of the sale,
exchange or other disposition of | ||||||
16 | such property. | ||||||
17 | (B) If the fair market value of property referred | ||||||
18 | to in paragraph
(1) was not readily ascertainable on | ||||||
19 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
20 | amount for such property is that amount which bears
the | ||||||
21 | same ratio to the total gain reported in respect of the | ||||||
22 | property for
federal income tax purposes for the | ||||||
23 | taxable year, as the number of full
calendar months in | ||||||
24 | that part of the taxpayer's holding period for the
| ||||||
25 | property ending July 31, 1969 bears to the number of | ||||||
26 | full calendar
months in the taxpayer's entire holding |
| |||||||
| |||||||
1 | period for the
property. | ||||||
2 | (C) The Department shall prescribe such | ||||||
3 | regulations as may be
necessary to carry out the | ||||||
4 | purposes of this paragraph.
| ||||||
5 | (g) Double deductions. Unless specifically provided | ||||||
6 | otherwise, nothing
in this Section shall permit the same item | ||||||
7 | to be deducted more than once.
| ||||||
8 | (h) Legislative intention. Except as expressly provided by | ||||||
9 | this
Section there shall be no modifications or limitations on | ||||||
10 | the amounts
of income, gain, loss or deduction taken into | ||||||
11 | account in determining
gross income, adjusted gross income or | ||||||
12 | taxable income for federal income
tax purposes for the taxable | ||||||
13 | year, or in the amount of such items
entering into the | ||||||
14 | computation of base income and net income under this
Act for | ||||||
15 | such taxable year, whether in respect of property values as of
| ||||||
16 | August 1, 1969 or otherwise. | ||||||
17 | (Source: P.A. 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; 96-198, | ||||||
18 | eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. 8-14-09; | ||||||
19 | 96-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935, eff. | ||||||
20 | 6-21-10; 96-1214, eff. 7-22-10; 97-333, eff. 8-12-11; 97-507, | ||||||
21 | eff. 8-23-11; 97-905, eff. 8-7-12.)
| ||||||
22 | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | ||||||
23 | Sec. 901. Collection authority. |
| |||||||
| |||||||
1 | (a) In general. | ||||||
2 | The Department shall collect the taxes imposed by this Act. | ||||||
3 | The Department
shall collect certified past due child support | ||||||
4 | amounts under Section 2505-650
of the Department of Revenue Law | ||||||
5 | (20 ILCS 2505/2505-650). Except as
provided in subsections (c), | ||||||
6 | (e), (f), (g), and (h) , and (i) of this Section, money | ||||||
7 | collected
pursuant to subsections (a) and (b) of Section 201 of | ||||||
8 | this Act shall be
paid into the General Revenue Fund in the | ||||||
9 | State treasury; money
collected pursuant to subsections (c) and | ||||||
10 | (d) of Section 201 of this Act
shall be paid into the Personal | ||||||
11 | Property Tax Replacement Fund, a special
fund in the State | ||||||
12 | Treasury; and money collected under Section 2505-650 of the
| ||||||
13 | Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
| ||||||
14 | into the
Child Support Enforcement Trust Fund, a special fund | ||||||
15 | outside the State
Treasury, or
to the State
Disbursement Unit | ||||||
16 | established under Section 10-26 of the Illinois Public Aid
| ||||||
17 | Code, as directed by the Department of Healthcare and Family | ||||||
18 | Services. | ||||||
19 | (b) Local Government Distributive Fund. | ||||||
20 | Beginning August 1, 1969, and continuing through June 30, | ||||||
21 | 1994, the Treasurer
shall transfer each month from the General | ||||||
22 | Revenue Fund to a special fund in
the State treasury, to be | ||||||
23 | known as the "Local Government Distributive Fund", an
amount | ||||||
24 | equal to 1/12 of the net revenue realized from the tax imposed | ||||||
25 | by
subsections (a) and (b) of Section 201 of this Act during | ||||||
26 | the preceding month.
Beginning July 1, 1994, and continuing |
| |||||||
| |||||||
1 | through June 30, 1995, the Treasurer
shall transfer each month | ||||||
2 | from the General Revenue Fund to the Local Government
| ||||||
3 | Distributive Fund an amount equal to 1/11 of the net revenue | ||||||
4 | realized from the
tax imposed by subsections (a) and (b) of | ||||||
5 | Section 201 of this Act during the
preceding month. Beginning | ||||||
6 | July 1, 1995 and continuing through January 31, 2011, the | ||||||
7 | Treasurer shall transfer each
month from the General Revenue | ||||||
8 | Fund to the Local Government Distributive Fund
an amount equal | ||||||
9 | to the net of (i) 1/10 of the net revenue realized from the
tax | ||||||
10 | imposed by
subsections (a) and (b) of Section 201 of the | ||||||
11 | Illinois Income Tax Act during
the preceding month
(ii) minus, | ||||||
12 | beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | ||||||
13 | and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | ||||||
14 | and continuing through January 31, 2015, the Treasurer shall | ||||||
15 | transfer each month from the General Revenue Fund to the Local | ||||||
16 | Government Distributive Fund an amount equal to the sum of (i) | ||||||
17 | 6% (10% of the ratio of the 3% individual income tax rate prior | ||||||
18 | to 2011 to the 5% individual income tax rate after 2010) of the | ||||||
19 | net revenue realized from the tax imposed by subsections (a) | ||||||
20 | and (b) of Section 201 of this Act upon individuals, trusts, | ||||||
21 | and estates during the preceding month and (ii) 6.86% (10% of | ||||||
22 | the ratio of the 4.8% corporate income tax rate prior to 2011 | ||||||
23 | to the 7% corporate income tax rate after 2010) of the net | ||||||
24 | revenue realized from the tax imposed by subsections (a) and | ||||||
25 | (b) of Section 201 of this Act upon corporations during the | ||||||
26 | preceding month. Beginning February 1, 2015 and continuing |
| |||||||
| |||||||
1 | through January 31, 2025, the Treasurer shall transfer each | ||||||
2 | month from the General Revenue Fund to the Local Government | ||||||
3 | Distributive Fund an amount equal to the sum of (i) 8% (10% of | ||||||
4 | the ratio of the 3% individual income tax rate prior to 2011 to | ||||||
5 | the 3.75% individual income tax rate after 2014) of the net | ||||||
6 | revenue realized from the tax imposed by subsections (a) and | ||||||
7 | (b) of Section 201 of this Act upon individuals, trusts, and | ||||||
8 | estates during the preceding month and (ii) 9.14% (10% of the | ||||||
9 | ratio of the 4.8% corporate income tax rate prior to 2011 to | ||||||
10 | the 5.25% corporate income tax rate after 2014) of the net | ||||||
11 | revenue realized from the tax imposed by subsections (a) and | ||||||
12 | (b) of Section 201 of this Act upon corporations during the | ||||||
13 | preceding month. Beginning February 1, 2025, the Treasurer | ||||||
14 | shall transfer each month from the General Revenue Fund to the | ||||||
15 | Local Government Distributive Fund an amount equal to the sum | ||||||
16 | of (i) 9.23% (10% of the ratio of the 3% individual income tax | ||||||
17 | rate prior to 2011 to the 3.25% individual income tax rate | ||||||
18 | after 2024) of the net revenue realized from the tax imposed by | ||||||
19 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
20 | individuals, trusts, and estates during the preceding month and | ||||||
21 | (ii) 10% of the net revenue realized from the tax imposed by | ||||||
22 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
23 | corporations during the preceding month. Net revenue realized | ||||||
24 | for a month shall be defined as the
revenue from the tax | ||||||
25 | imposed by subsections (a) and (b) of Section 201 of this
Act | ||||||
26 | which is deposited in the General Revenue Fund, the Education |
| |||||||
| |||||||
1 | Assistance
Fund, the Income Tax Surcharge Local Government | ||||||
2 | Distributive Fund, the Fund for the Advancement of Education, | ||||||
3 | and the Commitment to Human Services Fund during the
month | ||||||
4 | minus the amount paid out of the General Revenue Fund in State | ||||||
5 | warrants
during that same month as refunds to taxpayers for | ||||||
6 | overpayment of liability
under the tax imposed by subsections | ||||||
7 | (a) and (b) of Section 201 of this Act. | ||||||
8 | Beginning on August 26, 2014 ( the effective date of Public | ||||||
9 | Act 98-1052) this amendatory Act of the 98th General Assembly , | ||||||
10 | the Comptroller shall perform the transfers required by this | ||||||
11 | subsection (b) no later than 60 days after he or she receives | ||||||
12 | the certification from the Treasurer as provided in Section 1 | ||||||
13 | of the State Revenue Sharing Act. | ||||||
14 | (c) Deposits Into Income Tax Refund Fund. | ||||||
15 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
16 | Department shall
deposit a percentage of the amounts | ||||||
17 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
18 | (3), of Section 201 of this Act into a fund in the State
| ||||||
19 | treasury known as the Income Tax Refund Fund. The | ||||||
20 | Department shall deposit 6%
of such amounts during the | ||||||
21 | period beginning January 1, 1989 and ending on June
30, | ||||||
22 | 1989. Beginning with State fiscal year 1990 and for each | ||||||
23 | fiscal year
thereafter, the percentage deposited into the | ||||||
24 | Income Tax Refund Fund during a
fiscal year shall be the | ||||||
25 | Annual Percentage. For fiscal years 1999 through
2001, the | ||||||
26 | Annual Percentage shall be 7.1%.
For fiscal year 2003, the |
| |||||||
| |||||||
1 | Annual Percentage shall be 8%.
For fiscal year 2004, the | ||||||
2 | Annual Percentage shall be 11.7%. Upon the effective date | ||||||
3 | of this amendatory Act of the 93rd General Assembly, the | ||||||
4 | Annual Percentage shall be 10% for fiscal year 2005. For | ||||||
5 | fiscal year 2006, the Annual Percentage shall be 9.75%. For | ||||||
6 | fiscal
year 2007, the Annual Percentage shall be 9.75%. For | ||||||
7 | fiscal year 2008, the Annual Percentage shall be 7.75%. For | ||||||
8 | fiscal year 2009, the Annual Percentage shall be 9.75%. For | ||||||
9 | fiscal year 2010, the Annual Percentage shall be 9.75%. For | ||||||
10 | fiscal year 2011, the Annual Percentage shall be 8.75%. For | ||||||
11 | fiscal year 2012, the Annual Percentage shall be 8.75%. For | ||||||
12 | fiscal year 2013, the Annual Percentage shall be 9.75%. For | ||||||
13 | fiscal year 2014, the Annual Percentage shall be 9.5%. For | ||||||
14 | fiscal year 2015, the Annual Percentage shall be 10%. For | ||||||
15 | all other
fiscal years, the
Annual Percentage shall be | ||||||
16 | calculated as a fraction, the numerator of which
shall be | ||||||
17 | the amount of refunds approved for payment by the | ||||||
18 | Department during
the preceding fiscal year as a result of | ||||||
19 | overpayment of tax liability under
subsections (a) and | ||||||
20 | (b)(1), (2), and (3) of Section 201 of this Act plus the
| ||||||
21 | amount of such refunds remaining approved but unpaid at the | ||||||
22 | end of the
preceding fiscal year, minus the amounts | ||||||
23 | transferred into the Income Tax
Refund Fund from the | ||||||
24 | Tobacco Settlement Recovery Fund, and
the denominator of | ||||||
25 | which shall be the amounts which will be collected pursuant
| ||||||
26 | to subsections (a) and (b)(1), (2), and (3) of Section 201 |
| |||||||
| |||||||
1 | of this Act during
the preceding fiscal year; except that | ||||||
2 | in State fiscal year 2002, the Annual
Percentage shall in | ||||||
3 | no event exceed 7.6%. The Director of Revenue shall
certify | ||||||
4 | the Annual Percentage to the Comptroller on the last | ||||||
5 | business day of
the fiscal year immediately preceding the | ||||||
6 | fiscal year for which it is to be
effective. | ||||||
7 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
8 | Department shall
deposit a percentage of the amounts | ||||||
9 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
10 | (8), (c) and (d) of Section 201
of this Act into a fund in | ||||||
11 | the State treasury known as the Income Tax
Refund Fund. The | ||||||
12 | Department shall deposit 18% of such amounts during the
| ||||||
13 | period beginning January 1, 1989 and ending on June 30, | ||||||
14 | 1989. Beginning
with State fiscal year 1990 and for each | ||||||
15 | fiscal year thereafter, the
percentage deposited into the | ||||||
16 | Income Tax Refund Fund during a fiscal year
shall be the | ||||||
17 | Annual Percentage. For fiscal years 1999, 2000, and 2001, | ||||||
18 | the
Annual Percentage shall be 19%.
For fiscal year 2003, | ||||||
19 | the Annual Percentage shall be 27%. For fiscal year
2004, | ||||||
20 | the Annual Percentage shall be 32%.
Upon the effective date | ||||||
21 | of this amendatory Act of the 93rd General Assembly, the | ||||||
22 | Annual Percentage shall be 24% for fiscal year 2005.
For | ||||||
23 | fiscal year 2006, the Annual Percentage shall be 20%. For | ||||||
24 | fiscal
year 2007, the Annual Percentage shall be 17.5%. For | ||||||
25 | fiscal year 2008, the Annual Percentage shall be 15.5%. For | ||||||
26 | fiscal year 2009, the Annual Percentage shall be 17.5%. For |
| |||||||
| |||||||
1 | fiscal year 2010, the Annual Percentage shall be 17.5%. For | ||||||
2 | fiscal year 2011, the Annual Percentage shall be 17.5%. For | ||||||
3 | fiscal year 2012, the Annual Percentage shall be 17.5%. For | ||||||
4 | fiscal year 2013, the Annual Percentage shall be 14%. For | ||||||
5 | fiscal year 2014, the Annual Percentage shall be 13.4%. For | ||||||
6 | fiscal year 2015, the Annual Percentage shall be 14%. For | ||||||
7 | all other fiscal years, the Annual
Percentage shall be | ||||||
8 | calculated
as a fraction, the numerator of which shall be | ||||||
9 | the amount of refunds
approved for payment by the | ||||||
10 | Department during the preceding fiscal year as
a result of | ||||||
11 | overpayment of tax liability under subsections (a) and | ||||||
12 | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this | ||||||
13 | Act plus the
amount of such refunds remaining approved but | ||||||
14 | unpaid at the end of the
preceding fiscal year, and the | ||||||
15 | denominator of
which shall be the amounts which will be | ||||||
16 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
17 | (8), (c) and (d) of Section 201 of this Act during the
| ||||||
18 | preceding fiscal year; except that in State fiscal year | ||||||
19 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
20 | The Director of Revenue shall
certify the Annual Percentage | ||||||
21 | to the Comptroller on the last business day of
the fiscal | ||||||
22 | year immediately preceding the fiscal year for which it is | ||||||
23 | to be
effective. | ||||||
24 | (3) The Comptroller shall order transferred and the | ||||||
25 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
26 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 |
| |||||||
| |||||||
1 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
2 | (iii) $35,000,000 in January, 2003. | ||||||
3 | (d) Expenditures from Income Tax Refund Fund. | ||||||
4 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
5 | Refund Fund
shall be expended exclusively for the purpose | ||||||
6 | of paying refunds resulting
from overpayment of tax | ||||||
7 | liability under Section 201 of this Act, for paying
rebates | ||||||
8 | under Section 208.1 in the event that the amounts in the | ||||||
9 | Homeowners'
Tax Relief Fund are insufficient for that | ||||||
10 | purpose,
and for
making transfers pursuant to this | ||||||
11 | subsection (d). | ||||||
12 | (2) The Director shall order payment of refunds | ||||||
13 | resulting from
overpayment of tax liability under Section | ||||||
14 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
15 | extent that amounts collected pursuant
to Section 201 of | ||||||
16 | this Act and transfers pursuant to this subsection (d)
and | ||||||
17 | item (3) of subsection (c) have been deposited and retained | ||||||
18 | in the
Fund. | ||||||
19 | (3) As soon as possible after the end of each fiscal | ||||||
20 | year, the Director
shall
order transferred and the State | ||||||
21 | Treasurer and State Comptroller shall
transfer from the | ||||||
22 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
23 | Replacement Fund an amount, certified by the Director to | ||||||
24 | the Comptroller,
equal to the excess of the amount | ||||||
25 | collected pursuant to subsections (c) and
(d) of Section | ||||||
26 | 201 of this Act deposited into the Income Tax Refund Fund
|
| |||||||
| |||||||
1 | during the fiscal year over the amount of refunds resulting | ||||||
2 | from
overpayment of tax liability under subsections (c) and | ||||||
3 | (d) of Section 201
of this Act paid from the Income Tax | ||||||
4 | Refund Fund during the fiscal year. | ||||||
5 | (4) As soon as possible after the end of each fiscal | ||||||
6 | year, the Director shall
order transferred and the State | ||||||
7 | Treasurer and State Comptroller shall
transfer from the | ||||||
8 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
9 | Refund Fund an amount, certified by the Director to the | ||||||
10 | Comptroller, equal
to the excess of the amount of refunds | ||||||
11 | resulting from overpayment of tax
liability under | ||||||
12 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
13 | from the Income Tax Refund Fund during the fiscal year over | ||||||
14 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
15 | Section 201 of this Act
deposited into the Income Tax | ||||||
16 | Refund Fund during the fiscal year. | ||||||
17 | (4.5) As soon as possible after the end of fiscal year | ||||||
18 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
19 | order transferred and the State Treasurer and
State | ||||||
20 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
21 | to the General
Revenue Fund any surplus remaining in the | ||||||
22 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
23 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
24 | attributable to transfers under item (3) of subsection (c) | ||||||
25 | less refunds
resulting from the earned income tax credit. | ||||||
26 | (5) This Act shall constitute an irrevocable and |
| |||||||
| |||||||
1 | continuing
appropriation from the Income Tax Refund Fund | ||||||
2 | for the purpose of paying
refunds upon the order of the | ||||||
3 | Director in accordance with the provisions of
this Section. | ||||||
4 | (e) Deposits into the Education Assistance Fund and the | ||||||
5 | Income Tax
Surcharge Local Government Distributive Fund. | ||||||
6 | On July 1, 1991, and thereafter, of the amounts collected | ||||||
7 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
8 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
9 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
10 | State Treasury. Beginning July 1, 1991,
and continuing through | ||||||
11 | January 31, 1993, of the amounts collected pursuant to
| ||||||
12 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
13 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
14 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
15 | Local Government Distributive Fund in the State
Treasury. | ||||||
16 | Beginning February 1, 1993 and continuing through June 30, | ||||||
17 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
18 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
19 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
20 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
21 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
22 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
23 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
24 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
25 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
26 | Local Government Distributive Fund in the State Treasury. |
| |||||||
| |||||||
1 | (f) Deposits into the Fund for the Advancement of | ||||||
2 | Education. Beginning February 1, 2015, the Department shall | ||||||
3 | deposit the following portions of the revenue realized from the | ||||||
4 | tax imposed upon individuals, trusts, and estates by | ||||||
5 | subsections (a) and (b) of Section 201 of this Act during the | ||||||
6 | preceding month, minus deposits into the Income Tax Refund | ||||||
7 | Fund, into the Fund for the Advancement of Education: | ||||||
8 | (1) beginning February 1, 2015, and prior to February | ||||||
9 | 1, 2025, 1/30; and | ||||||
10 | (2) beginning February 1, 2025, 1/26. | ||||||
11 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
12 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
13 | the Department shall not make the deposits required by this | ||||||
14 | subsection (f) on or after the effective date of the reduction. | ||||||
15 | (g) Deposits into the Commitment to Human Services Fund. | ||||||
16 | Beginning February 1, 2015, the Department shall deposit the | ||||||
17 | following portions of the revenue realized from the tax imposed | ||||||
18 | upon individuals, trusts, and estates by subsections (a) and | ||||||
19 | (b) of Section 201 of this Act during the preceding month, | ||||||
20 | minus deposits into the Income Tax Refund Fund, into the | ||||||
21 | Commitment to Human Services Fund: | ||||||
22 | (1) beginning February 1, 2015, and prior to February | ||||||
23 | 1, 2025, 1/30; and | ||||||
24 | (2) beginning February 1, 2025, 1/26. | ||||||
25 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
26 | Section 201 is reduced pursuant to Section 201.5 of this Act, |
| |||||||
| |||||||
1 | the Department shall not make the deposits required by this | ||||||
2 | subsection (g) on or after the effective date of the reduction. | ||||||
3 | (h) Deposits into the Tax Compliance and Administration | ||||||
4 | Fund. Beginning on the first day of the first calendar month to | ||||||
5 | occur on or after August 26, 2014 ( the effective date of Public | ||||||
6 | Act 98-1098) this amendatory Act of the 98th General Assembly , | ||||||
7 | each month the Department shall pay into the Tax Compliance and | ||||||
8 | Administration Fund, to be used, subject to appropriation, to | ||||||
9 | fund additional auditors and compliance personnel at the | ||||||
10 | Department, an amount equal to 1/12 of 5% of the cash receipts | ||||||
11 | collected during the preceding fiscal year by the Audit Bureau | ||||||
12 | of the Department from the tax imposed by subsections (a), (b), | ||||||
13 | (c), and (d) of Section 201 of this Act, net of deposits into | ||||||
14 | the Income Tax Refund Fund made from those cash receipts. | ||||||
15 | (i) Deposits into the 21st Century Workforce Development | ||||||
16 | Fund. On and after the effective date of this amendatory Act of | ||||||
17 | the 99th General Assembly, the Department shall deposit into | ||||||
18 | the 21st Century Workforce Development Fund each month an | ||||||
19 | amount equal to 1/10 of the revenue realized from the tax | ||||||
20 | imposed by subsections (a) and (b) of Section 201 of this Act | ||||||
21 | during the preceding month that is attributable to the changes | ||||||
22 | made to Section 203 of this Act by this amendatory Act of the | ||||||
23 | 99th General Assembly, net of deposits into the Income Tax | ||||||
24 | Refund Fund. | ||||||
25 | (Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24, | ||||||
26 | eff. 6-19-13; 98-674, eff. 6-30-14; 98-1052, eff. 8-26-14; |
| |||||||
| |||||||
1 | 98-1098, eff. 8-26-14; revised 9-26-14.)
| ||||||
2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
|