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1 | AN ACT concerning State government. | |||||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||||||||||||||
3 | represented in the General Assembly: | |||||||||||||||||||||||||||||||
4 | Section 5. The State Treasurer Act is amended by changing | |||||||||||||||||||||||||||||||
5 | Sections 16.5 and 16.8 as follows: | |||||||||||||||||||||||||||||||
6 | (15 ILCS 505/16.5) | |||||||||||||||||||||||||||||||
7 | Sec. 16.5. College , Secondary, and Elementary Education | |||||||||||||||||||||||||||||||
8 | Savings Pool. | |||||||||||||||||||||||||||||||
9 | (a) Definitions. As used in this Section: | |||||||||||||||||||||||||||||||
10 | "Account owner" means any person or entity who has opened | |||||||||||||||||||||||||||||||
11 | an account or to whom ownership of an account has been | |||||||||||||||||||||||||||||||
12 | transferred, as allowed by the Internal Revenue Code, and who | |||||||||||||||||||||||||||||||
13 | has authority to withdraw funds, direct withdrawal of funds, | |||||||||||||||||||||||||||||||
14 | change the designated beneficiary, or otherwise exercise | |||||||||||||||||||||||||||||||
15 | control over an account in the College , Secondary, and | |||||||||||||||||||||||||||||||
16 | Elementary Education Savings Pool. | |||||||||||||||||||||||||||||||
17 | "Donor" means any person or entity who makes contributions | |||||||||||||||||||||||||||||||
18 | to an account in the College , Secondary, and Elementary | |||||||||||||||||||||||||||||||
19 | Education Savings Pool. | |||||||||||||||||||||||||||||||
20 | "Designated beneficiary" means any individual designated | |||||||||||||||||||||||||||||||
21 | as the beneficiary of an account in the College , Secondary, | |||||||||||||||||||||||||||||||
22 | and Elementary Education Savings Pool by an account owner. A | |||||||||||||||||||||||||||||||
23 | designated beneficiary must have a valid social security |
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1 | number or taxpayer identification number. In the case of an | ||||||
2 | account established as part of a scholarship program permitted | ||||||
3 | under Section 529 of the Internal Revenue Code, the designated | ||||||
4 | beneficiary is any individual receiving benefits accumulated | ||||||
5 | in the account as a scholarship. | ||||||
6 | "Eligible educational institution" means (A) public and | ||||||
7 | private colleges, junior colleges, graduate schools, and | ||||||
8 | certain vocational institutions that are described in Section | ||||||
9 | 1001 of the Higher Education Resource and Student Assistance | ||||||
10 | Chapter of Title 20 of the United States Code (20 U.S.C. 1001) | ||||||
11 | and that are eligible to participate in Department of | ||||||
12 | Education student aid programs and (B) elementary or secondary | ||||||
13 | public, private, or religious schools . | ||||||
14 | "Member of the family" has the same meaning ascribed to | ||||||
15 | that term under Section 529 of the Internal Revenue Code. | ||||||
16 | "Nonqualified withdrawal" means a distribution from an | ||||||
17 | account other than a distribution that (i) is used for the | ||||||
18 | qualified expenses of the designated beneficiary; (ii) results | ||||||
19 | from the beneficiary's death or disability; (iii) is a | ||||||
20 | rollover to another account in the College , Secondary, and | ||||||
21 | Elementary Education Savings Pool; or (iv) is a rollover to an | ||||||
22 | ABLE account, as defined in Section 16.6 of this Act, or any | ||||||
23 | distribution that, within 60 days after such distribution, is | ||||||
24 | transferred to an ABLE account of the designated beneficiary | ||||||
25 | or a member of the family of the designated beneficiary to the | ||||||
26 | extent that the distribution, when added to all other |
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1 | contributions made to the ABLE account for the taxable year, | ||||||
2 | does not exceed the limitation under Section 529A(b) of the | ||||||
3 | Internal Revenue Code. | ||||||
4 | "Qualified expenses" means: (i) tuition, fees, and the | ||||||
5 | costs of books, supplies, and equipment required for | ||||||
6 | enrollment or attendance at an eligible educational | ||||||
7 | institution that is described under paragraph (A) of "eligible | ||||||
8 | educational institution" as defined under this Section ; (ii) | ||||||
9 | expenses for special needs services, in the case of a special | ||||||
10 | needs beneficiary, which are incurred in connection with such | ||||||
11 | enrollment or attendance under item (i) ; (iii) certain | ||||||
12 | expenses, to the extent they qualify as qualified higher | ||||||
13 | education expenses under Section 529 of the Internal Revenue | ||||||
14 | Code, for the purchase of computer or peripheral equipment or | ||||||
15 | Internet access and related services, if such equipment, | ||||||
16 | software, or services are to be used primarily by the | ||||||
17 | beneficiary during any of the years the beneficiary is | ||||||
18 | enrolled at an eligible educational institution, except that, | ||||||
19 | such expenses shall not include expenses for computer software | ||||||
20 | designed for sports, games, or hobbies, unless the software is | ||||||
21 | predominantly educational in nature; (iv) room and board | ||||||
22 | expenses incurred while attending an eligible educational | ||||||
23 | institution that is described under paragraph (A) of "eligible | ||||||
24 | educational institution" as defined under this Section at | ||||||
25 | least half-time; (v) expenses for fees, books, supplies, and | ||||||
26 | equipment required for the participation of a designated |
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1 | beneficiary in an apprenticeship program registered and | ||||||
2 | certified with the Secretary of Labor under the National | ||||||
3 | Apprenticeship Act (29 U.S.C. 50); and (vi) amounts paid as | ||||||
4 | principal or interest on any qualified education loan for an | ||||||
5 | eligible educational institution that is described under | ||||||
6 | paragraph (A) of "eligible educational institution" as defined | ||||||
7 | under this Section of the designated beneficiary or a sibling | ||||||
8 | of the designated beneficiary, as allowed under Section 529 of | ||||||
9 | the Internal Revenue Code ; and (vii) expenses, up to $10,000 | ||||||
10 | per taxable year, for tuition in connection with enrollment or | ||||||
11 | attendance at an elementary or secondary public, private, or | ||||||
12 | religious school . A student shall be considered to be enrolled | ||||||
13 | at least half-time if the student is enrolled for at least half | ||||||
14 | the full-time academic workload for the course of study the | ||||||
15 | student is pursuing as determined under the standards of the | ||||||
16 | institution at which the student is enrolled. | ||||||
17 | (b) Establishment of the Pool. The State Treasurer may | ||||||
18 | establish and administer the College , Secondary, and | ||||||
19 | Elementary Education Savings Pool as a qualified tuition | ||||||
20 | program under Section 529 of the Internal Revenue Code. The | ||||||
21 | Pool may consist of one or more college , secondary, and | ||||||
22 | elementary education savings programs. The State Treasurer, in | ||||||
23 | administering the College , Secondary, and Elementary Education | ||||||
24 | Savings Pool, may: (1) receive, hold, and invest moneys paid | ||||||
25 | into the Pool; and (2) perform any other action he or she deems | ||||||
26 | necessary to administer the Pool, including any other actions |
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1 | necessary to ensure that the Pool operates as a qualified | ||||||
2 | tuition program in accordance with Section 529 of the Internal | ||||||
3 | Revenue Code. | ||||||
4 | (c) Administration of the College , Secondary, and | ||||||
5 | Elementary Education Savings Pool. The State Treasurer may | ||||||
6 | delegate duties related to the College , Secondary, and | ||||||
7 | Elementary Education Savings Pool to one or more contractors. | ||||||
8 | The contributions deposited in the Pool, and any earnings | ||||||
9 | thereon, shall not constitute property of the State or be | ||||||
10 | commingled with State funds and the State shall have no claim | ||||||
11 | to or against, or interest in, such funds; provided that the | ||||||
12 | fees collected by the State Treasurer in accordance with this | ||||||
13 | Act, scholarship programs administered by the State Treasurer, | ||||||
14 | and seed funds deposited by the State Treasurer under Section | ||||||
15 | 16.8 of the Act are State funds. | ||||||
16 | (c-5) College , Secondary, and Elementary Education Savings | ||||||
17 | Pool Account Summaries. The State Treasurer shall provide a | ||||||
18 | separate accounting for each designated beneficiary. The | ||||||
19 | separate accounting shall be provided to the account owner of | ||||||
20 | the account for the designated beneficiary at least annually | ||||||
21 | and shall show the account balance, the investment in the | ||||||
22 | account, the investment earnings, and the distributions from | ||||||
23 | the account. | ||||||
24 | (d) Availability of the College , Secondary, and Elementary | ||||||
25 | Education Savings Pool. The State Treasurer may permit | ||||||
26 | persons, including trustees of trusts and custodians under a |
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1 | Uniform Transfers to Minors Act or Uniform Gifts to Minors Act | ||||||
2 | account, and certain legal entities to be account owners, | ||||||
3 | including as part of a scholarship program, provided that: (1) | ||||||
4 | an individual, trustee or custodian must have a valid social | ||||||
5 | security number or taxpayer identification number, be at least | ||||||
6 | 18 years of age, and have a valid United States street address; | ||||||
7 | and (2) a legal entity must have a valid taxpayer | ||||||
8 | identification number and a valid United States street | ||||||
9 | address. In-state and out-of-state persons, trustees, | ||||||
10 | custodians, and legal entities may be account owners and | ||||||
11 | donors, and both in-state and out-of-state individuals may be | ||||||
12 | designated beneficiaries in the College , Secondary, and | ||||||
13 | Elementary Education Savings Pool. | ||||||
14 | (e) Fees. Any fees, costs, and expenses, including | ||||||
15 | investment fees and expenses and payments to third parties, | ||||||
16 | related to the College , Secondary, and Elementary Education | ||||||
17 | Savings Pool, shall be paid from the assets of the College , | ||||||
18 | Secondary, and Elementary Education Savings Pool. The State | ||||||
19 | Treasurer shall establish fees to be imposed on accounts to | ||||||
20 | cover such fees, costs, and expenses, to the extent not paid | ||||||
21 | directly out of the investments of the College , Secondary, and | ||||||
22 | Elementary Education Savings Pool, and to maintain an adequate | ||||||
23 | reserve fund in line with industry standards for government | ||||||
24 | operated funds. The Treasurer must use his or her best efforts | ||||||
25 | to keep these fees as low as possible and consistent with | ||||||
26 | administration of high quality competitive college , secondary, |
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1 | and elementary education savings programs. | ||||||
2 | (f) Investments in the State. To enhance the safety and | ||||||
3 | liquidity of the College , Secondary, and Elementary Education | ||||||
4 | Savings Pool, to ensure the diversification of the investment | ||||||
5 | portfolio of the College , Secondary, and Elementary Education | ||||||
6 | Savings Pool, and in an effort to keep investment dollars in | ||||||
7 | the State of Illinois, the State Treasurer may make a | ||||||
8 | percentage of each account available for investment in | ||||||
9 | participating financial institutions doing business in the | ||||||
10 | State. | ||||||
11 | (g) Investment policy. The Treasurer shall develop, | ||||||
12 | publish, and implement an investment policy covering the | ||||||
13 | investment of the moneys in each of the programs in the | ||||||
14 | College , Secondary, and Elementary Education Savings Pool. The | ||||||
15 | policy shall be published each year as part of the audit of the | ||||||
16 | College , Secondary, and Elementary Education Savings Pool by | ||||||
17 | the Auditor General, which shall be distributed to all account | ||||||
18 | owners in such program. The Treasurer shall notify all account | ||||||
19 | owners in such program in writing, and the Treasurer shall | ||||||
20 | publish in a newspaper of general circulation in both Chicago | ||||||
21 | and Springfield, any changes to the previously published | ||||||
22 | investment policy at least 30 calendar days before | ||||||
23 | implementing the policy. Any investment policy adopted by the | ||||||
24 | Treasurer shall be reviewed and updated if necessary within 90 | ||||||
25 | days following the date that the State Treasurer takes office. | ||||||
26 | (h) Investment restrictions. An account owner may, |
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1 | directly or indirectly, direct the investment of his or her | ||||||
2 | account only as provided in Section 529(b)(4) of the Internal | ||||||
3 | Revenue Code. Donors and designated beneficiaries, in those | ||||||
4 | capacities, may not, directly or indirectly, direct the | ||||||
5 | investment of an account. | ||||||
6 | (i) Distributions. Distributions from an account in the | ||||||
7 | College , Secondary, and Elementary Education Savings Pool may | ||||||
8 | be used for the designated beneficiary's qualified expenses, | ||||||
9 | and if not used in that manner, may be considered a | ||||||
10 | nonqualified withdrawal. Funds contained in a College , | ||||||
11 | Secondary, and Elementary Education Savings Pool account may | ||||||
12 | be rolled over into an eligible ABLE account, as defined in | ||||||
13 | Section 16.6 of this Act, or another qualified tuition | ||||||
14 | program, to the extent permitted by Section 529 of the | ||||||
15 | Internal Revenue Code. | ||||||
16 | Distributions made from the College , Secondary, and | ||||||
17 | Elementary Education Savings Pool may be made directly to the | ||||||
18 | eligible educational institution, directly to a vendor, in the | ||||||
19 | form of a check payable to both the designated beneficiary and | ||||||
20 | the institution or vendor, directly to the designated | ||||||
21 | beneficiary or account owner, or in any other manner that is | ||||||
22 | permissible under Section 529 of the Internal Revenue Code. | ||||||
23 | (j) Contributions. Contributions to the College , | ||||||
24 | Secondary, and Elementary Education Savings Pool shall be as | ||||||
25 | follows: | ||||||
26 | (1) Contributions to an account in the College , |
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1 | Secondary, and Elementary Education Savings Pool may be | ||||||
2 | made only in cash. | ||||||
3 | (2) The Treasurer shall limit the contributions that | ||||||
4 | may be made to the College , Secondary, and Elementary | ||||||
5 | Education Savings Pool on behalf of a designated | ||||||
6 | beneficiary, as required under Section 529 of the Internal | ||||||
7 | Revenue Code, to prevent contributions for the benefit of | ||||||
8 | a designated beneficiary in excess of those necessary to | ||||||
9 | provide for the qualified expenses of the designated | ||||||
10 | beneficiary. The Pool shall not permit any additional | ||||||
11 | contributions to an account as soon as the sum of (i) the | ||||||
12 | aggregate balance in all accounts in the Pool for the | ||||||
13 | designated beneficiary and (ii) the aggregate | ||||||
14 | contributions in the Illinois Prepaid Tuition Program for | ||||||
15 | the designated beneficiary reaches the specified balance | ||||||
16 | limit established from time to time by the Treasurer. | ||||||
17 | (k) Illinois Student Assistance Commission. The Treasurer | ||||||
18 | and the Illinois Student Assistance Commission shall each | ||||||
19 | cooperate in providing each other with account information, as | ||||||
20 | necessary, to prevent contributions in excess of those | ||||||
21 | necessary to provide for the qualified expenses of the | ||||||
22 | designated beneficiary, as described in subsection (j). | ||||||
23 | The Treasurer shall work with the Illinois Student | ||||||
24 | Assistance Commission to coordinate the marketing of the | ||||||
25 | College , Secondary, and Elementary Education Savings Pool and | ||||||
26 | the Illinois Prepaid Tuition Program when considered |
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1 | beneficial by the Treasurer and the Director of the Illinois | ||||||
2 | Student Assistance Commission. | ||||||
3 | (l) Prohibition; exemption. No interest in the program, or | ||||||
4 | any portion thereof, may be used as security for a loan. Moneys | ||||||
5 | held in an account invested in the College , Secondary, and | ||||||
6 | Elementary Education Savings Pool shall be exempt from all | ||||||
7 | claims of the creditors of the account owner, donor, or | ||||||
8 | designated beneficiary of that account, except for the | ||||||
9 | non-exempt College , Secondary, and Elementary Education | ||||||
10 | Savings Pool transfers to or from the account as defined under | ||||||
11 | subsection (j) of Section 12-1001 of the Code of Civil | ||||||
12 | Procedure. | ||||||
13 | (m) Taxation. The assets of the College , Secondary, and | ||||||
14 | Elementary Education Savings Pool and its income and operation | ||||||
15 | shall be exempt from all taxation by the State of Illinois and | ||||||
16 | any of its subdivisions. The accrued earnings on investments | ||||||
17 | in the Pool once disbursed on behalf of a designated | ||||||
18 | beneficiary shall be similarly exempt from all taxation by the | ||||||
19 | State of Illinois and its subdivisions, so long as they are | ||||||
20 | used for qualified expenses. Contributions to a College , | ||||||
21 | Secondary, and Elementary Education Savings Pool account | ||||||
22 | during the taxable year may be deducted from adjusted gross | ||||||
23 | income as provided in Section 203 of the Illinois Income Tax | ||||||
24 | Act. The provisions of this paragraph are exempt from Section | ||||||
25 | 250 of the Illinois Income Tax Act. | ||||||
26 | (n) Rules. The Treasurer shall adopt rules he or she |
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1 | considers necessary for the efficient administration of the | ||||||
2 | College , Secondary, and Elementary Education Savings Pool. The | ||||||
3 | rules shall provide whatever additional parameters and | ||||||
4 | restrictions are necessary to ensure that the College , | ||||||
5 | Secondary, and Elementary Education Savings Pool meets all the | ||||||
6 | requirements for a qualified tuition program under Section 529 | ||||||
7 | of the Internal Revenue Code. | ||||||
8 | Notice of any proposed amendments to the rules and | ||||||
9 | regulations shall be provided to all account owners prior to | ||||||
10 | adoption. | ||||||
11 | (o) Bond. The State Treasurer shall give bond with at | ||||||
12 | least one surety, payable to and for the benefit of the account | ||||||
13 | owners in the College , Secondary, and Elementary Education | ||||||
14 | Savings Pool, in the penal sum of $10,000,000, conditioned | ||||||
15 | upon the faithful discharge of his or her duties in relation to | ||||||
16 | the College , Secondary, and Elementary Education Savings Pool. | ||||||
17 | (p) The changes made to subsections (c) and (e) of this | ||||||
18 | Section by Public Act 101-26 are intended to be a restatement | ||||||
19 | and clarification of existing law. | ||||||
20 | (Source: P.A. 101-26, eff. 6-21-19; 101-81, eff. 7-12-19; | ||||||
21 | 102-186, eff. 7-30-21.) | ||||||
22 | (15 ILCS 505/16.8) | ||||||
23 | Sec. 16.8. Illinois Higher Education Savings Program. | ||||||
24 | (a) Definitions. As used in this Section: | ||||||
25 | "Beneficiary" means an eligible child named as a recipient |
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1 | of seed funds. | ||||||
2 | "Eligible child" means a child born or adopted after | ||||||
3 | December 31, 2022, to a parent who is a resident of Illinois at | ||||||
4 | the time of the birth or adoption, as evidenced by | ||||||
5 | documentation received by the Treasurer from the Department of | ||||||
6 | Revenue, the Department of Public Health, or another State or | ||||||
7 | local government agency. | ||||||
8 | "Eligible educational institution" means institutions that | ||||||
9 | are described in Section 1001 of the federal Higher Education | ||||||
10 | Act of 1965 that are eligible to participate in Department of | ||||||
11 | Education student aid programs. | ||||||
12 | "Fund" means the Illinois Higher Education Savings Program | ||||||
13 | Fund. | ||||||
14 | "Omnibus account" means the pooled collection of seed | ||||||
15 | funds owned and managed by the State Treasurer in the College , | ||||||
16 | Secondary, and Elementary Education Savings Pool under this | ||||||
17 | Act. | ||||||
18 | "Program" means the Illinois Higher Education Savings | ||||||
19 | Program. | ||||||
20 | "Qualified higher education expense" means the following: | ||||||
21 | (i) tuition, fees, and the costs of books, supplies, and | ||||||
22 | equipment required for enrollment or attendance at an eligible | ||||||
23 | educational institution; (ii) expenses for special needs | ||||||
24 | services, in the case of a special needs beneficiary, which | ||||||
25 | are incurred in connection with such enrollment or attendance; | ||||||
26 | (iii) certain expenses for the purchase of computer or |
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1 | peripheral equipment, computer software, or Internet access | ||||||
2 | and related services as defined under Section 529 of the | ||||||
3 | Internal Revenue Code; (iv) room and board expenses incurred | ||||||
4 | while attending an eligible educational institution at least | ||||||
5 | half-time; (v) expenses for fees, books, supplies, and | ||||||
6 | equipment required for the participation of a designated | ||||||
7 | beneficiary in an apprenticeship program registered and | ||||||
8 | certified with the Secretary of Labor under the National | ||||||
9 | Apprenticeship Act (29 U.S.C. 50); and (vi) amounts paid as | ||||||
10 | principal or interest on any qualified education loan of the | ||||||
11 | designated beneficiary or a sibling of the designated | ||||||
12 | beneficiary, as allowed under Section 529 of the Internal | ||||||
13 | Revenue Code. | ||||||
14 | "Seed funds" means the deposit made by the State Treasurer | ||||||
15 | into the Omnibus Accounts for Program beneficiaries. | ||||||
16 | (b) Program established. The State Treasurer shall | ||||||
17 | establish the Illinois Higher Education Savings Program as a | ||||||
18 | part of the College , Secondary, and Elementary Education | ||||||
19 | Savings Pool under Section 16.5 of this Act, subject to | ||||||
20 | appropriation by the General Assembly. The State Treasurer | ||||||
21 | shall administer the Program for the purposes of expanding | ||||||
22 | access to higher education through savings. | ||||||
23 | (c) Program enrollment. The State Treasurer shall enroll | ||||||
24 | all eligible children in the Program beginning in 2023, after | ||||||
25 | receiving records of recent births, adoptions, or dependents | ||||||
26 | from the Department of Revenue, the Department of Public |
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1 | Health, or another State or local government agency designated | ||||||
2 | by the Treasurer. Notwithstanding any court order which would | ||||||
3 | otherwise prevent the release of information, the Department | ||||||
4 | of Public Health is authorized to release the information | ||||||
5 | specified under this subsection (c) to the State Treasurer for | ||||||
6 | the purposes of the Program established under this Section. | ||||||
7 | (1) Beginning in 2021, the Department of Public Health | ||||||
8 | shall provide the State Treasurer with information on | ||||||
9 | recent Illinois births and adoptions including, but not | ||||||
10 | limited to: the full name, residential address, birth | ||||||
11 | date, and birth record number of the child and the full | ||||||
12 | name and residential address of the child's parent or | ||||||
13 | legal guardian for the purpose of enrolling eligible | ||||||
14 | children in the Program. This data shall be provided to | ||||||
15 | the State Treasurer by the Department of Public Health on | ||||||
16 | a quarterly basis, no later than 30 days after the end of | ||||||
17 | each quarter, or some other date and frequency as mutually | ||||||
18 | agreed to by the State Treasurer and the Department of | ||||||
19 | Public Health. | ||||||
20 | (1.5) Beginning in 2021, the Department of Revenue | ||||||
21 | shall provide the State Treasurer with information on tax | ||||||
22 | filers claiming dependents or the adoption tax credit | ||||||
23 | including, but not limited to: the full name, residential | ||||||
24 | address, email address, phone number, birth date, and | ||||||
25 | social security number or taxpayer identification number | ||||||
26 | of the dependent child and of the child's parent or legal |
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1 | guardian for the purpose of enrolling eligible children in | ||||||
2 | the Program. This data shall be provided to the State | ||||||
3 | Treasurer by the Department of Revenue on at least an | ||||||
4 | annual basis, by July 1 of each year or another date | ||||||
5 | jointly determined by the State Treasurer and the | ||||||
6 | Department of Revenue. Notwithstanding anything to the | ||||||
7 | contrary contained within this paragraph (2), the | ||||||
8 | Department of Revenue shall not be required to share any | ||||||
9 | information that would be contrary to federal law, | ||||||
10 | regulation, or Internal Revenue Service Publication 1075. | ||||||
11 | (2) The State Treasurer shall ensure the security and | ||||||
12 | confidentiality of the information provided by the | ||||||
13 | Department of Revenue, the Department of Public Health, or | ||||||
14 | another State or local government agency, and it shall not | ||||||
15 | be subject to release under the Freedom of Information | ||||||
16 | Act. | ||||||
17 | (3) Information provided under this Section shall only | ||||||
18 | be used by the State Treasurer for the Program and shall | ||||||
19 | not be used for any other purpose. | ||||||
20 | (4) The State Treasurer and any vendors working on the | ||||||
21 | Program shall maintain strict confidentiality of any | ||||||
22 | information provided under this Section, and shall | ||||||
23 | promptly provide written or electronic notice to the | ||||||
24 | providing agency of any security breach. The providing | ||||||
25 | State or local government agency shall remain the sole and | ||||||
26 | exclusive owner of information provided under this |
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1 | Section. | ||||||
2 | (d) Seed funds. After receiving information on recent | ||||||
3 | births, adoptions, or dependents from the Department of | ||||||
4 | Revenue, the Department of Public Health, or another State or | ||||||
5 | local government agency, the State Treasurer shall make | ||||||
6 | deposits into an omnibus account on behalf of eligible | ||||||
7 | children. The State Treasurer shall be the owner of the | ||||||
8 | omnibus accounts. | ||||||
9 | (1) Deposit amount. The seed fund deposit for each | ||||||
10 | eligible child shall be in the amount of $50. This amount | ||||||
11 | may be increased by the State Treasurer by rule. The State | ||||||
12 | Treasurer may use or deposit funds appropriated by the | ||||||
13 | General Assembly together with moneys received as gifts, | ||||||
14 | grants, or contributions into the Fund. If insufficient | ||||||
15 | funds are available in the Fund, the State Treasurer may | ||||||
16 | reduce the deposit amount or forego deposits. | ||||||
17 | (2) Use of seed funds. Seed funds, including any | ||||||
18 | interest, dividends, and other earnings accrued, will be | ||||||
19 | eligible for use by a beneficiary for qualified higher | ||||||
20 | education expenses if: | ||||||
21 | (A) the parent or guardian of the eligible child | ||||||
22 | claimed the seed funds for the beneficiary by the | ||||||
23 | beneficiary's 10th birthday; | ||||||
24 | (B) the beneficiary has completed secondary | ||||||
25 | education or has reached the age of 18; and | ||||||
26 | (C) the beneficiary is currently a resident of the |
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1 | State of Illinois. Non-residents are not eligible to | ||||||
2 | claim or use seed funds. | ||||||
3 | (3) Notice of seed fund availability. The State | ||||||
4 | Treasurer shall make a good faith effort to notify | ||||||
5 | beneficiaries and their parents or legal guardians of the | ||||||
6 | seed funds' availability and the deadline to claim such | ||||||
7 | funds. | ||||||
8 | (4) Unclaimed seed funds. Seed funds and any interest | ||||||
9 | earnings that are unclaimed by the beneficiary's 10th | ||||||
10 | birthday or unused by the beneficiary's 26th birthday will | ||||||
11 | be considered forfeited. Unclaimed and unused seed funds | ||||||
12 | and any interest earnings will remain in the omnibus | ||||||
13 | account for future beneficiaries. | ||||||
14 | (e) Financial education. The State Treasurer may develop | ||||||
15 | educational materials that support the financial literacy of | ||||||
16 | beneficiaries and their legal guardians, and may do so in | ||||||
17 | collaboration with State and federal agencies, including, but | ||||||
18 | not limited to, the Illinois State Board of Education and | ||||||
19 | existing nonprofit agencies with expertise in financial | ||||||
20 | literacy and education. | ||||||
21 | (f) Supplementary deposits and partnerships. The State | ||||||
22 | Treasurer may make supplementary deposits to children in | ||||||
23 | financially insecure households if sufficient funds are | ||||||
24 | available. Furthermore, the State Treasurer may develop | ||||||
25 | partnerships with private, nonprofit, or governmental | ||||||
26 | organizations to provide additional savings incentives, |
| |||||||
| |||||||
1 | including conditional cash transfers or matching contributions | ||||||
2 | that provide a savings incentive based on specific actions | ||||||
3 | taken or other criteria. | ||||||
4 | (g) Illinois Higher Education Savings Program Fund. The | ||||||
5 | Illinois Higher Education Savings Program Fund is hereby | ||||||
6 | established as a special fund in the State treasury. The Fund | ||||||
7 | shall be the official repository of all contributions, | ||||||
8 | appropriated funds, interest, and dividend payments, gifts, or | ||||||
9 | other financial assets received by the State Treasurer in | ||||||
10 | connection with the operation of the Program or related | ||||||
11 | partnerships. All such moneys shall be deposited into the Fund | ||||||
12 | and held by the State Treasurer as custodian thereof. The | ||||||
13 | State Treasurer may accept gifts, grants, awards, matching | ||||||
14 | contributions, interest income, and appropriated funds from | ||||||
15 | individuals, businesses, governments, and other third-party | ||||||
16 | sources to implement the Program on terms that the Treasurer | ||||||
17 | deems advisable. All interest or other earnings accruing or | ||||||
18 | received on amounts in the Illinois Higher Education Savings | ||||||
19 | Program Fund shall be credited to and retained by the Fund and | ||||||
20 | used for the benefit of the Program. Assets of the Fund must at | ||||||
21 | all times be preserved, invested, and expended only for the | ||||||
22 | purposes of the Program and must be held for the benefit of the | ||||||
23 | beneficiaries. Assets may not be transferred or used by the | ||||||
24 | State or the State Treasurer for any purposes other than the | ||||||
25 | purposes of the Program. In addition, no moneys, interest, or | ||||||
26 | other earnings paid into the Fund shall be used, temporarily |
| |||||||
| |||||||
1 | or otherwise, for inter-fund borrowing or be otherwise used or | ||||||
2 | appropriated except as expressly authorized by this Act. | ||||||
3 | Notwithstanding the requirements of this subsection (g), | ||||||
4 | amounts in the Fund may be used by the State Treasurer to pay | ||||||
5 | the administrative costs of the Program. | ||||||
6 | (g-5) Fund deposits and payments. On July 15 of each year, | ||||||
7 | beginning July 15, 2023, or as soon thereafter as practical, | ||||||
8 | the State Comptroller shall direct and the State Treasurer | ||||||
9 | shall transfer the sum of $2,500,000, or the amount that is | ||||||
10 | appropriated annually by the General Assembly, whichever is | ||||||
11 | greater, from the General Revenue Fund to the Illinois Higher | ||||||
12 | Education Savings Program Fund to be used for the | ||||||
13 | administration and operation of the Program. | ||||||
14 | (h) Audits and reports. The State Treasurer shall include | ||||||
15 | the Illinois Higher Education Savings Program as part of the | ||||||
16 | audit of the College , Secondary, and Elementary Education | ||||||
17 | Savings Pool described in Section 16.5. The State Treasurer | ||||||
18 | shall annually prepare a report that includes a summary of the | ||||||
19 | Program operations for the preceding fiscal year, including | ||||||
20 | the number of children enrolled in the Program, the total | ||||||
21 | amount of seed fund deposits, the rate of seed deposits | ||||||
22 | claimed, and, to the extent data is reported and available, | ||||||
23 | the racial, ethnic, socioeconomic, and geographic data of | ||||||
24 | beneficiaries and of children in financially insecure | ||||||
25 | households who may receive automatic bonus deposits. Such | ||||||
26 | other information that is relevant to make a full disclosure |
| |||||||
| |||||||
1 | of the operations of the Program and Fund may also be reported. | ||||||
2 | The report shall be made available on the Treasurer's website | ||||||
3 | by January 31 each year, starting in January of 2024. The State | ||||||
4 | Treasurer may include the Program in other reports as | ||||||
5 | warranted. | ||||||
6 | (i) Rules. The State Treasurer may adopt rules necessary | ||||||
7 | to implement this Section. | ||||||
8 | (Source: P.A. 102-129, eff. 7-23-21; 102-558, eff. 8-20-21; | ||||||
9 | 102-1047, eff. 1-1-23; 103-8, eff. 6-7-23.) | ||||||
10 | Section 10. The Deposit of State Moneys Act is amended by | ||||||
11 | changing Section 22.5 as follows: | ||||||
12 | (15 ILCS 520/22.5) (from Ch. 130, par. 41a) | ||||||
13 | (For force and effect of certain provisions, see Section | ||||||
14 | 90 of P.A. 94-79) | ||||||
15 | Sec. 22.5. Permitted investments. The State Treasurer may | ||||||
16 | invest and reinvest any State money in the State Treasury | ||||||
17 | which is not needed for current expenditures due or about to | ||||||
18 | become due, in obligations of the United States government or | ||||||
19 | its agencies or of National Mortgage Associations established | ||||||
20 | by or under the National Housing Act, 12 U.S.C. 1701 et seq., | ||||||
21 | or in mortgage participation certificates representing | ||||||
22 | undivided interests in specified, first-lien conventional | ||||||
23 | residential Illinois mortgages that are underwritten, insured, | ||||||
24 | guaranteed, or purchased by the Federal Home Loan Mortgage |
| |||||||
| |||||||
1 | Corporation or in Affordable Housing Program Trust Fund Bonds | ||||||
2 | or Notes as defined in and issued pursuant to the Illinois | ||||||
3 | Housing Development Act. All such obligations shall be | ||||||
4 | considered as cash and may be delivered over as cash by a State | ||||||
5 | Treasurer to his successor. | ||||||
6 | The State Treasurer may purchase any state bonds with any | ||||||
7 | money in the State Treasury that has been set aside and held | ||||||
8 | for the payment of the principal of and interest on the bonds. | ||||||
9 | The bonds shall be considered as cash and may be delivered over | ||||||
10 | as cash by the State Treasurer to his successor. | ||||||
11 | The State Treasurer may invest or reinvest any State money | ||||||
12 | in the State Treasury that is not needed for current | ||||||
13 | expenditures due or about to become due, or any money in the | ||||||
14 | State Treasury that has been set aside and held for the payment | ||||||
15 | of the principal of and interest on any State bonds, in bonds | ||||||
16 | issued by counties or municipal corporations of the State of | ||||||
17 | Illinois. | ||||||
18 | The State Treasurer may invest or reinvest up to 5% of the | ||||||
19 | College , Secondary, and Elementary Education Savings Pool | ||||||
20 | Administrative Trust Fund, the Illinois Public Treasurer | ||||||
21 | Investment Pool (IPTIP) Administrative Trust Fund, and the | ||||||
22 | State Treasurer's Administrative Fund that is not needed for | ||||||
23 | current expenditures due or about to become due, in common or | ||||||
24 | preferred stocks of publicly traded corporations, | ||||||
25 | partnerships, or limited liability companies, organized in the | ||||||
26 | United States, with assets exceeding $500,000,000 if: (i) the |
| |||||||
| |||||||
1 | purchases do not exceed 1% of the corporation's or the limited | ||||||
2 | liability company's outstanding common and preferred stock; | ||||||
3 | (ii) no more than 10% of the total funds are invested in any | ||||||
4 | one publicly traded corporation, partnership, or limited | ||||||
5 | liability company; and (iii) the corporation or the limited | ||||||
6 | liability company has not been placed on the list of | ||||||
7 | restricted companies by the Illinois Investment Policy Board | ||||||
8 | under Section 1-110.16 of the Illinois Pension Code. | ||||||
9 | Whenever the total amount of vouchers presented to the | ||||||
10 | Comptroller under Section 9 of the State Comptroller Act | ||||||
11 | exceeds the funds available in the General Revenue Fund by | ||||||
12 | $1,000,000,000 or more, then the State Treasurer may invest | ||||||
13 | any State money in the State Treasury, other than money in the | ||||||
14 | General Revenue Fund, Health Insurance Reserve Fund, Attorney | ||||||
15 | General Court Ordered and Voluntary Compliance Payment | ||||||
16 | Projects Fund, Attorney General Whistleblower Reward and | ||||||
17 | Protection Fund, and Attorney General's State Projects and | ||||||
18 | Court Ordered Distribution Fund, which is not needed for | ||||||
19 | current expenditures, due or about to become due, or any money | ||||||
20 | in the State Treasury which has been set aside and held for the | ||||||
21 | payment of the principal of and the interest on any State bonds | ||||||
22 | with the Office of the Comptroller in order to enable the | ||||||
23 | Comptroller to pay outstanding vouchers. At any time, and from | ||||||
24 | time to time outstanding, such investment shall not be greater | ||||||
25 | than $2,000,000,000. Such investment shall be deposited into | ||||||
26 | the General Revenue Fund or Health Insurance Reserve Fund as |
| |||||||
| |||||||
1 | determined by the Comptroller. Such investment shall be repaid | ||||||
2 | by the Comptroller with an interest rate tied to the London | ||||||
3 | Interbank Offered Rate (LIBOR) or the Federal Funds Rate or an | ||||||
4 | equivalent market established variable rate, but in no case | ||||||
5 | shall such interest rate exceed the lesser of the penalty rate | ||||||
6 | established under the State Prompt Payment Act or the timely | ||||||
7 | pay interest rate under Section 368a of the Illinois Insurance | ||||||
8 | Code. The State Treasurer and the Comptroller shall enter into | ||||||
9 | an intergovernmental agreement to establish procedures for | ||||||
10 | such investments, which market established variable rate to | ||||||
11 | which the interest rate for the investments should be tied, | ||||||
12 | and other terms which the State Treasurer and Comptroller | ||||||
13 | reasonably believe to be mutually beneficial concerning these | ||||||
14 | investments by the State Treasurer. The State Treasurer and | ||||||
15 | Comptroller shall also enter into a written agreement for each | ||||||
16 | such investment that specifies the period of the investment, | ||||||
17 | the payment interval, the interest rate to be paid, the funds | ||||||
18 | in the State Treasury from which the State Treasurer will draw | ||||||
19 | the investment, and other terms upon which the State Treasurer | ||||||
20 | and Comptroller mutually agree. Such investment agreements | ||||||
21 | shall be public records and the State Treasurer shall post the | ||||||
22 | terms of all such investment agreements on the State | ||||||
23 | Treasurer's official website. In compliance with the | ||||||
24 | intergovernmental agreement, the Comptroller shall order and | ||||||
25 | the State Treasurer shall transfer amounts sufficient for the | ||||||
26 | payment of principal and interest invested by the State |
| |||||||
| |||||||
1 | Treasurer with the Office of the Comptroller under this | ||||||
2 | paragraph from the General Revenue Fund or the Health | ||||||
3 | Insurance Reserve Fund to the respective funds in the State | ||||||
4 | Treasury from which the State Treasurer drew the investment. | ||||||
5 | Public Act 100-1107 shall constitute an irrevocable and | ||||||
6 | continuing authority for all amounts necessary for the payment | ||||||
7 | of principal and interest on the investments made with the | ||||||
8 | Office of the Comptroller by the State Treasurer under this | ||||||
9 | paragraph, and the irrevocable and continuing authority for | ||||||
10 | and direction to the Comptroller and State Treasurer to make | ||||||
11 | the necessary transfers. | ||||||
12 | The State Treasurer may invest or reinvest any State money | ||||||
13 | in the State Treasury that is not needed for current | ||||||
14 | expenditure, due or about to become due, or any money in the | ||||||
15 | State Treasury that has been set aside and held for the payment | ||||||
16 | of the principal of and the interest on any State bonds, in any | ||||||
17 | of the following: | ||||||
18 | (1) Bonds, notes, certificates of indebtedness, | ||||||
19 | Treasury bills, or other securities now or hereafter | ||||||
20 | issued that are guaranteed by the full faith and credit of | ||||||
21 | the United States of America as to principal and interest. | ||||||
22 | (2) Bonds, notes, debentures, or other similar | ||||||
23 | obligations of the United States of America, its agencies, | ||||||
24 | and instrumentalities, or other obligations that are | ||||||
25 | issued or guaranteed by supranational entities; provided, | ||||||
26 | that at the time of investment, the entity has the United |
| |||||||
| |||||||
1 | States government as a shareholder. | ||||||
2 | (2.5) Bonds, notes, debentures, or other similar | ||||||
3 | obligations of a foreign government, other than the | ||||||
4 | Republic of the Sudan, that are guaranteed by the full | ||||||
5 | faith and credit of that government as to principal and | ||||||
6 | interest, but only if the foreign government has not | ||||||
7 | defaulted and has met its payment obligations in a timely | ||||||
8 | manner on all similar obligations for a period of at least | ||||||
9 | 25 years immediately before the time of acquiring those | ||||||
10 | obligations. | ||||||
11 | (3) Interest-bearing savings accounts, | ||||||
12 | interest-bearing certificates of deposit, | ||||||
13 | interest-bearing time deposits, or any other investments | ||||||
14 | constituting direct obligations of any bank as defined by | ||||||
15 | the Illinois Banking Act. | ||||||
16 | (4) Interest-bearing accounts, certificates of | ||||||
17 | deposit, or any other investments constituting direct | ||||||
18 | obligations of any savings and loan associations | ||||||
19 | incorporated under the laws of this State or any other | ||||||
20 | state or under the laws of the United States. | ||||||
21 | (5) Dividend-bearing share accounts, share certificate | ||||||
22 | accounts, or class of share accounts of a credit union | ||||||
23 | chartered under the laws of this State or the laws of the | ||||||
24 | United States; provided, however, the principal office of | ||||||
25 | the credit union must be located within the State of | ||||||
26 | Illinois. |
| |||||||
| |||||||
1 | (6) Bankers' acceptances of banks whose senior | ||||||
2 | obligations are rated in the top 2 rating categories by 2 | ||||||
3 | national rating agencies and maintain that rating during | ||||||
4 | the term of the investment and the bank has not been placed | ||||||
5 | on the list of restricted companies by the Illinois | ||||||
6 | Investment Policy Board under Section 1-110.16 of the | ||||||
7 | Illinois Pension Code. | ||||||
8 | (7) Short-term obligations of either corporations or | ||||||
9 | limited liability companies organized in the United States | ||||||
10 | with assets exceeding $500,000,000 if (i) the obligations | ||||||
11 | are rated at the time of purchase at one of the 3 highest | ||||||
12 | classifications established by at least 2 standard rating | ||||||
13 | services and mature not later than 270 days from the date | ||||||
14 | of purchase, (ii) the purchases do not exceed 10% of the | ||||||
15 | corporation's or the limited liability company's | ||||||
16 | outstanding obligations, (iii) no more than one-third of | ||||||
17 | the public agency's funds are invested in short-term | ||||||
18 | obligations of either corporations or limited liability | ||||||
19 | companies, and (iv) the corporation or the limited | ||||||
20 | liability company has not been placed on the list of | ||||||
21 | restricted companies by the Illinois Investment Policy | ||||||
22 | Board under Section 1-110.16 of the Illinois Pension Code. | ||||||
23 | (7.5) Obligations of either corporations or limited | ||||||
24 | liability companies organized in the United States, that | ||||||
25 | have a significant presence in this State, with assets | ||||||
26 | exceeding $500,000,000 if: (i) the obligations are rated |
| |||||||
| |||||||
1 | at the time of purchase at one of the 3 highest | ||||||
2 | classifications established by at least 2 standard rating | ||||||
3 | services and mature more than 270 days, but less than 10 | ||||||
4 | years, from the date of purchase; (ii) the purchases do | ||||||
5 | not exceed 10% of the corporation's or the limited | ||||||
6 | liability company's outstanding obligations; (iii) no more | ||||||
7 | than one-third of the public agency's funds are invested | ||||||
8 | in such obligations of corporations or limited liability | ||||||
9 | companies; and (iv) the corporation or the limited | ||||||
10 | liability company has not been placed on the list of | ||||||
11 | restricted companies by the Illinois Investment Policy | ||||||
12 | Board under Section 1-110.16 of the Illinois Pension Code. | ||||||
13 | (8) Money market mutual funds registered under the | ||||||
14 | Investment Company Act of 1940. | ||||||
15 | (9) The Public Treasurers' Investment Pool created | ||||||
16 | under Section 17 of the State Treasurer Act or in a fund | ||||||
17 | managed, operated, and administered by a bank. | ||||||
18 | (10) Repurchase agreements of government securities | ||||||
19 | having the meaning set out in the Government Securities | ||||||
20 | Act of 1986, as now or hereafter amended or succeeded, | ||||||
21 | subject to the provisions of that Act and the regulations | ||||||
22 | issued thereunder. | ||||||
23 | (11) Investments made in accordance with the | ||||||
24 | Technology Development Act. | ||||||
25 | (12) Investments made in accordance with the Student | ||||||
26 | Investment Account Act. |
| |||||||
| |||||||
1 | (13) Investments constituting direct obligations of a | ||||||
2 | community development financial institution, which is | ||||||
3 | certified by the United States Treasury Community | ||||||
4 | Development Financial Institutions Fund and is operating | ||||||
5 | in the State of Illinois. | ||||||
6 | (14) Investments constituting direct obligations of a | ||||||
7 | minority depository institution, as designated by the | ||||||
8 | Federal Deposit Insurance Corporation, that is operating | ||||||
9 | in the State of Illinois. | ||||||
10 | (15) Investments made in accordance with any other law | ||||||
11 | that authorizes the State Treasurer to invest or deposit | ||||||
12 | funds. | ||||||
13 | For purposes of this Section, "agencies" of the United | ||||||
14 | States Government includes: | ||||||
15 | (i) the federal land banks, federal intermediate | ||||||
16 | credit banks, banks for cooperatives, federal farm credit | ||||||
17 | banks, or any other entity authorized to issue debt | ||||||
18 | obligations under the Farm Credit Act of 1971 (12 U.S.C. | ||||||
19 | 2001 et seq.) and Acts amendatory thereto; | ||||||
20 | (ii) the federal home loan banks and the federal home | ||||||
21 | loan mortgage corporation; | ||||||
22 | (iii) the Commodity Credit Corporation; and | ||||||
23 | (iv) any other agency created by Act of Congress. | ||||||
24 | The State Treasurer may lend any securities acquired under | ||||||
25 | this Act. However, securities may be lent under this Section | ||||||
26 | only in accordance with Federal Financial Institution |
| |||||||
| |||||||
1 | Examination Council guidelines and only if the securities are | ||||||
2 | collateralized at a level sufficient to assure the safety of | ||||||
3 | the securities, taking into account market value fluctuation. | ||||||
4 | The securities may be collateralized by cash or collateral | ||||||
5 | acceptable under Sections 11 and 11.1. | ||||||
6 | (Source: P.A. 101-81, eff. 7-12-19; 101-206, eff. 8-2-19; | ||||||
7 | 101-586, eff. 8-26-19; 101-657, eff. 3-23-21; 102-297, eff. | ||||||
8 | 8-6-21; 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.) | ||||||
9 | Section 15. The Illinois Income Tax Act is amended by | ||||||
10 | changing Sections 203 and 218 as follows: | ||||||
11 | (35 ILCS 5/203) | ||||||
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 | ||||||
20 | the 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 |
| |||||||
| |||||||
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 | ||||||
14 | 1, 1991, the retrospective application date of Article | ||||||
15 | 4 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 |
| |||||||
| |||||||
1 | medical care savings account and the interest earned | ||||||
2 | on the account in the taxable year of a withdrawal | ||||||
3 | pursuant to subsection (b) of Section 20 of the | ||||||
4 | Medical Care Savings Account Act or subsection (b) of | ||||||
5 | Section 20 of the Medical Care Savings Account Act of | ||||||
6 | 2000; | ||||||
7 | (D-10) For taxable years ending after December 31, | ||||||
8 | 1997, an amount equal to any eligible remediation | ||||||
9 | costs that the individual deducted in computing | ||||||
10 | adjusted gross income and for which the individual | ||||||
11 | claims a credit under subsection (l) of Section 201; | ||||||
12 | (D-15) For taxable years 2001 and thereafter, an | ||||||
13 | amount equal to the bonus depreciation deduction taken | ||||||
14 | on the taxpayer's federal income tax return for the | ||||||
15 | taxable year under subsection (k) of Section 168 of | ||||||
16 | the Internal Revenue Code; | ||||||
17 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
18 | or otherwise disposes of property for which the | ||||||
19 | taxpayer was required in any taxable year to make an | ||||||
20 | addition modification under subparagraph (D-15), then | ||||||
21 | an amount equal to the aggregate amount of the | ||||||
22 | deductions taken in all taxable years under | ||||||
23 | subparagraph (Z) with respect to that property. | ||||||
24 | If the taxpayer continues to own property through | ||||||
25 | the last day of the last tax year for which a | ||||||
26 | subtraction is allowed with respect to that property |
| |||||||
| |||||||
1 | under subparagraph (Z) and for which the taxpayer was | ||||||
2 | allowed in any taxable year to make a subtraction | ||||||
3 | modification under subparagraph (Z), then an amount | ||||||
4 | equal to that subtraction modification. | ||||||
5 | The taxpayer is required to make the addition | ||||||
6 | modification under this subparagraph only once with | ||||||
7 | respect to any one piece of property; | ||||||
8 | (D-17) An amount equal to the amount otherwise | ||||||
9 | allowed as a deduction in computing base income for | ||||||
10 | interest paid, accrued, or incurred, directly or | ||||||
11 | indirectly, (i) for taxable years ending on or after | ||||||
12 | December 31, 2004, to a foreign person who would be a | ||||||
13 | member of the same unitary business group but for the | ||||||
14 | fact that foreign person's business activity outside | ||||||
15 | the United States is 80% or more of the foreign | ||||||
16 | person's total business activity and (ii) for taxable | ||||||
17 | years ending on or after December 31, 2008, to a person | ||||||
18 | who would be a member of the same unitary business | ||||||
19 | group but for the fact that the person is prohibited | ||||||
20 | under Section 1501(a)(27) from being included in the | ||||||
21 | unitary business group because he or she is ordinarily | ||||||
22 | required to apportion business income under different | ||||||
23 | subsections of Section 304. The addition modification | ||||||
24 | required by this subparagraph shall be reduced to the | ||||||
25 | extent that dividends were included in base income of | ||||||
26 | the unitary group for the same taxable year and |
| |||||||
| |||||||
1 | received by the taxpayer or by a member of the | ||||||
2 | taxpayer's unitary business group (including amounts | ||||||
3 | included in gross income under Sections 951 through | ||||||
4 | 964 of the Internal Revenue Code and amounts included | ||||||
5 | in gross income under Section 78 of the Internal | ||||||
6 | Revenue Code) with respect to the stock of the same | ||||||
7 | person to whom the interest was paid, accrued, or | ||||||
8 | incurred. | ||||||
9 | This paragraph shall not apply to the following: | ||||||
10 | (i) an item of interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to a person who | ||||||
12 | is subject in a foreign country or state, other | ||||||
13 | than a state which requires mandatory unitary | ||||||
14 | reporting, to a tax on or measured by net income | ||||||
15 | with respect to such interest; or | ||||||
16 | (ii) an item of interest paid, accrued, or | ||||||
17 | incurred, directly or indirectly, to a person if | ||||||
18 | the taxpayer can establish, based on a | ||||||
19 | preponderance of the evidence, both of the | ||||||
20 | following: | ||||||
21 | (a) the person, during the same taxable | ||||||
22 | year, paid, accrued, or incurred, the interest | ||||||
23 | to a person that is not a related member, and | ||||||
24 | (b) the transaction giving rise to the | ||||||
25 | interest expense between the taxpayer and the | ||||||
26 | person did not have as a principal purpose the |
| |||||||
| |||||||
1 | avoidance of Illinois income tax, and is paid | ||||||
2 | pursuant to a contract or agreement that | ||||||
3 | reflects an arm's-length interest rate and | ||||||
4 | terms; or | ||||||
5 | (iii) the taxpayer can establish, based on | ||||||
6 | clear and convincing evidence, that the interest | ||||||
7 | paid, accrued, or incurred relates to a contract | ||||||
8 | or agreement entered into at arm's-length rates | ||||||
9 | and terms and the principal purpose for the | ||||||
10 | payment is not federal or Illinois tax avoidance; | ||||||
11 | or | ||||||
12 | (iv) an item of interest paid, accrued, or | ||||||
13 | incurred, directly or indirectly, to a person if | ||||||
14 | the taxpayer establishes by clear and convincing | ||||||
15 | evidence that the adjustments are unreasonable; or | ||||||
16 | if the taxpayer and the Director agree in writing | ||||||
17 | to the application or use of an alternative method | ||||||
18 | of apportionment under Section 304(f). | ||||||
19 | Nothing in this subsection shall preclude the | ||||||
20 | Director from making any other adjustment | ||||||
21 | otherwise allowed under Section 404 of this Act | ||||||
22 | for any tax year beginning after the effective | ||||||
23 | date of this amendment provided such adjustment is | ||||||
24 | made pursuant to regulation adopted by the | ||||||
25 | Department and such regulations provide methods | ||||||
26 | and standards by which the Department will utilize |
| |||||||
| |||||||
1 | its authority under Section 404 of this Act; | ||||||
2 | (D-18) An amount equal to the amount of intangible | ||||||
3 | expenses and costs otherwise allowed as a deduction in | ||||||
4 | computing base income, and that were paid, accrued, or | ||||||
5 | incurred, directly or indirectly, (i) for taxable | ||||||
6 | years ending on or after December 31, 2004, to a | ||||||
7 | foreign person who would be a member of the same | ||||||
8 | unitary business group but for the fact that the | ||||||
9 | foreign person's business activity outside the United | ||||||
10 | States is 80% or more of that person's total business | ||||||
11 | activity and (ii) for taxable years ending on or after | ||||||
12 | December 31, 2008, to a person who would be a member of | ||||||
13 | the same unitary business group but for the fact that | ||||||
14 | the person is prohibited under Section 1501(a)(27) | ||||||
15 | from being included in the unitary business group | ||||||
16 | because he or she is ordinarily required to apportion | ||||||
17 | business income under different subsections of Section | ||||||
18 | 304. The addition modification required by this | ||||||
19 | subparagraph shall be reduced to the extent that | ||||||
20 | dividends were included in base income of the unitary | ||||||
21 | group for the same taxable year and received by the | ||||||
22 | taxpayer or by a member of the taxpayer's unitary | ||||||
23 | business group (including amounts included in gross | ||||||
24 | income under Sections 951 through 964 of the Internal | ||||||
25 | Revenue Code and amounts included in gross income | ||||||
26 | under Section 78 of the Internal Revenue Code) with |
| |||||||
| |||||||
1 | respect to the stock of the same person to whom the | ||||||
2 | intangible expenses and costs were directly or | ||||||
3 | indirectly paid, incurred, or accrued. The preceding | ||||||
4 | sentence does not apply to the extent that the same | ||||||
5 | dividends caused a reduction to the addition | ||||||
6 | modification required under Section 203(a)(2)(D-17) of | ||||||
7 | this Act. As used in this subparagraph, the term | ||||||
8 | "intangible expenses and costs" includes (1) expenses, | ||||||
9 | losses, and costs for, or related to, the direct or | ||||||
10 | indirect acquisition, use, maintenance or management, | ||||||
11 | ownership, sale, exchange, or any other disposition of | ||||||
12 | intangible property; (2) losses incurred, directly or | ||||||
13 | indirectly, from factoring transactions or discounting | ||||||
14 | transactions; (3) royalty, patent, technical, and | ||||||
15 | copyright fees; (4) licensing fees; and (5) other | ||||||
16 | similar expenses and costs. For purposes of this | ||||||
17 | subparagraph, "intangible property" includes patents, | ||||||
18 | patent applications, trade names, trademarks, service | ||||||
19 | marks, copyrights, mask works, trade secrets, and | ||||||
20 | similar types of intangible assets. | ||||||
21 | This paragraph shall not apply to the following: | ||||||
22 | (i) any item of intangible expenses or costs | ||||||
23 | paid, accrued, or incurred, directly or | ||||||
24 | indirectly, from a transaction with a person who | ||||||
25 | is subject in a foreign country or state, other | ||||||
26 | than a state which requires mandatory unitary |
| |||||||
| |||||||
1 | reporting, to a tax on or measured by net income | ||||||
2 | with respect to such item; or | ||||||
3 | (ii) any item of intangible expense or cost | ||||||
4 | paid, accrued, or incurred, directly or | ||||||
5 | indirectly, if the taxpayer can establish, based | ||||||
6 | on a preponderance of the evidence, both of the | ||||||
7 | following: | ||||||
8 | (a) the person during the same taxable | ||||||
9 | year paid, accrued, or incurred, the | ||||||
10 | intangible expense or cost to a person that is | ||||||
11 | not a related member, and | ||||||
12 | (b) the transaction giving rise to the | ||||||
13 | intangible expense or cost between the | ||||||
14 | taxpayer and the person did not have as a | ||||||
15 | principal purpose the avoidance of Illinois | ||||||
16 | income tax, and is paid pursuant to a contract | ||||||
17 | or agreement that reflects arm's-length terms; | ||||||
18 | or | ||||||
19 | (iii) any item of intangible expense or cost | ||||||
20 | paid, accrued, or incurred, directly or | ||||||
21 | indirectly, from a transaction with a person if | ||||||
22 | the taxpayer establishes by clear and convincing | ||||||
23 | evidence, that the adjustments are unreasonable; | ||||||
24 | or if the taxpayer and the Director agree in | ||||||
25 | writing to the application or use of an | ||||||
26 | alternative method of apportionment under Section |
| |||||||
| |||||||
1 | 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 | ||||||
5 | for any tax year beginning after the effective | ||||||
6 | date of this amendment provided such adjustment is | ||||||
7 | made pursuant to regulation adopted by the | ||||||
8 | Department and such regulations provide methods | ||||||
9 | and standards by which the Department will utilize | ||||||
10 | its authority under Section 404 of this Act; | ||||||
11 | (D-19) For taxable years ending on or after | ||||||
12 | December 31, 2008, an amount equal to the amount of | ||||||
13 | insurance premium expenses and costs otherwise allowed | ||||||
14 | as a deduction in computing base income, and that were | ||||||
15 | paid, accrued, or incurred, directly or indirectly, to | ||||||
16 | a 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 | ||||||
5 | stock of the same person to whom the premiums and costs | ||||||
6 | were directly or indirectly paid, incurred, or | ||||||
7 | accrued. The preceding sentence does not apply to the | ||||||
8 | extent that the same dividends caused a reduction to | ||||||
9 | the addition modification required under Section | ||||||
10 | 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this | ||||||
11 | Act; | ||||||
12 | (D-20) For taxable years beginning on or after | ||||||
13 | January 1, 2002 and ending on or before December 31, | ||||||
14 | 2006, in the case of a distribution from a qualified | ||||||
15 | tuition program under Section 529 of the Internal | ||||||
16 | Revenue Code, other than (i) a distribution from a | ||||||
17 | College Savings Pool created under Section 16.5 of the | ||||||
18 | State Treasurer Act (now known as a College, | ||||||
19 | Secondary, and Elementary Education Savings Pool) or | ||||||
20 | (ii) a distribution from the Illinois Prepaid Tuition | ||||||
21 | Trust Fund, an amount equal to the amount excluded | ||||||
22 | from gross income under Section 529(c)(3)(B). For | ||||||
23 | taxable years beginning on or after January 1, 2007, | ||||||
24 | in the case of a distribution from a qualified tuition | ||||||
25 | program under Section 529 of the Internal Revenue | ||||||
26 | Code, other than (i) a distribution from a College |
| |||||||
| |||||||
1 | Savings Pool created under Section 16.5 of the State | ||||||
2 | Treasurer Act, (ii) a distribution from the Illinois | ||||||
3 | Prepaid Tuition Trust Fund, or (iii) a distribution | ||||||
4 | from a qualified tuition program under Section 529 of | ||||||
5 | the Internal Revenue Code that (I) adopts and | ||||||
6 | determines that its offering materials comply with the | ||||||
7 | College Savings Plans Network's disclosure principles | ||||||
8 | and (II) has made reasonable efforts to inform | ||||||
9 | in-state residents of the existence of in-state | ||||||
10 | qualified tuition programs by informing Illinois | ||||||
11 | residents directly and, where applicable, to inform | ||||||
12 | financial intermediaries distributing the program to | ||||||
13 | inform in-state residents of the existence of in-state | ||||||
14 | qualified tuition programs at least annually, an | ||||||
15 | amount equal to the amount excluded from gross income | ||||||
16 | under Section 529(c)(3)(B). | ||||||
17 | For the purposes of this subparagraph (D-20), a | ||||||
18 | qualified tuition program has made reasonable efforts | ||||||
19 | if it makes disclosures (which may use the term | ||||||
20 | "in-state program" or "in-state plan" and need not | ||||||
21 | specifically refer to Illinois or its qualified | ||||||
22 | programs by name) (i) directly to prospective | ||||||
23 | participants in its offering materials or makes a | ||||||
24 | public disclosure, such as a website posting; and (ii) | ||||||
25 | where applicable, to intermediaries selling the | ||||||
26 | out-of-state program in the same manner that the |
| |||||||
| |||||||
1 | out-of-state program distributes its offering | ||||||
2 | materials; | ||||||
3 | (D-20.5) For taxable years beginning on or after | ||||||
4 | January 1, 2018, in the case of a distribution from a | ||||||
5 | qualified ABLE program under Section 529A of the | ||||||
6 | Internal Revenue Code, other than a distribution from | ||||||
7 | a qualified ABLE program created under Section 16.6 of | ||||||
8 | the State Treasurer Act, an amount equal to the amount | ||||||
9 | excluded from gross income under Section 529A(c)(1)(B) | ||||||
10 | of the Internal Revenue Code; | ||||||
11 | (D-21) For taxable years beginning on or after | ||||||
12 | January 1, 2007, in the case of transfer of moneys from | ||||||
13 | a qualified tuition program under Section 529 of the | ||||||
14 | Internal Revenue Code that is administered by the | ||||||
15 | State to an out-of-state program, an amount equal to | ||||||
16 | the amount of moneys previously deducted from base | ||||||
17 | income under subsection (a)(2)(Y) of this Section; | ||||||
18 | (D-21.5) For taxable years beginning on or after | ||||||
19 | January 1, 2018, in the case of the transfer of moneys | ||||||
20 | from a qualified tuition program under Section 529 or | ||||||
21 | a qualified ABLE program under Section 529A of the | ||||||
22 | Internal Revenue Code that is administered by this | ||||||
23 | State to an ABLE account established under an | ||||||
24 | out-of-state ABLE account program, an amount equal to | ||||||
25 | the contribution component of the transferred amount | ||||||
26 | that was previously deducted from base income under |
| |||||||
| |||||||
1 | subsection (a)(2)(Y) or subsection (a)(2)(HH) of this | ||||||
2 | Section; | ||||||
3 | (D-22) For taxable years beginning on or after | ||||||
4 | January 1, 2009, and prior to January 1, 2018, in the | ||||||
5 | case of a nonqualified withdrawal or refund of moneys | ||||||
6 | from a qualified tuition program under Section 529 of | ||||||
7 | the Internal Revenue Code administered by the State | ||||||
8 | that is not used for qualified expenses at an eligible | ||||||
9 | education institution, an amount equal to the | ||||||
10 | contribution component of the nonqualified withdrawal | ||||||
11 | or refund that was previously deducted from base | ||||||
12 | income under subsection (a)(2)(y) of this Section, | ||||||
13 | provided that the withdrawal or refund did not result | ||||||
14 | from the beneficiary's death or disability. For | ||||||
15 | taxable years beginning on or after January 1, 2018: | ||||||
16 | (1) in the case of a nonqualified withdrawal or | ||||||
17 | refund, as defined under Section 16.5 of the State | ||||||
18 | Treasurer Act, of moneys from a qualified tuition | ||||||
19 | program under Section 529 of the Internal Revenue Code | ||||||
20 | administered by the State, an amount equal to the | ||||||
21 | contribution component of the nonqualified withdrawal | ||||||
22 | or refund that was previously deducted from base | ||||||
23 | income under subsection (a)(2)(Y) of this Section, and | ||||||
24 | (2) in the case of a nonqualified withdrawal or refund | ||||||
25 | from a qualified ABLE program under Section 529A of | ||||||
26 | the Internal Revenue Code administered by the State |
| |||||||
| |||||||
1 | that is not used for qualified disability expenses, an | ||||||
2 | amount equal to the contribution component of the | ||||||
3 | nonqualified withdrawal or refund that was previously | ||||||
4 | deducted from base income under subsection (a)(2)(HH) | ||||||
5 | of this Section; | ||||||
6 | (D-23) An amount equal to the credit allowable to | ||||||
7 | the taxpayer under Section 218(a) of this Act, | ||||||
8 | determined without regard to Section 218(c) of this | ||||||
9 | Act; | ||||||
10 | (D-24) For taxable years ending on or after | ||||||
11 | December 31, 2017, an amount equal to the deduction | ||||||
12 | allowed under Section 199 of the Internal Revenue Code | ||||||
13 | for the taxable year; | ||||||
14 | (D-25) In the case of a resident, an amount equal | ||||||
15 | to the amount of tax for which a credit is allowed | ||||||
16 | pursuant to Section 201(p)(7) of this Act; | ||||||
17 | and by deducting from the total so obtained the sum of the | ||||||
18 | following amounts: | ||||||
19 | (E) For taxable years ending before December 31, | ||||||
20 | 2001, any amount included in such total in respect of | ||||||
21 | any compensation (including but not limited to any | ||||||
22 | compensation paid or accrued to a serviceman while a | ||||||
23 | prisoner of war or missing in action) paid to a | ||||||
24 | resident by reason of being on active duty in the Armed | ||||||
25 | Forces of the United States and in respect of any | ||||||
26 | compensation paid or accrued to a resident who as a |
| |||||||
| |||||||
1 | governmental employee was a prisoner of war or missing | ||||||
2 | in action, and in respect of any compensation paid to a | ||||||
3 | resident in 1971 or thereafter for annual training | ||||||
4 | performed pursuant to Sections 502 and 503, Title 32, | ||||||
5 | United States Code as a member of the Illinois | ||||||
6 | National Guard or, beginning with taxable years ending | ||||||
7 | on or after December 31, 2007, the National Guard of | ||||||
8 | any other state. For taxable years ending on or after | ||||||
9 | December 31, 2001, any amount included in such total | ||||||
10 | in respect of any compensation (including but not | ||||||
11 | limited to any compensation paid or accrued to a | ||||||
12 | serviceman while a prisoner of war or missing in | ||||||
13 | action) paid to a resident by reason of being a member | ||||||
14 | of any component of the Armed Forces of the United | ||||||
15 | States and in respect of any compensation paid or | ||||||
16 | accrued to a resident who as a governmental employee | ||||||
17 | was a prisoner of war or missing in action, and in | ||||||
18 | respect of any compensation paid to a resident in 2001 | ||||||
19 | or thereafter by reason of being a member of the | ||||||
20 | Illinois National Guard or, beginning with taxable | ||||||
21 | years ending on or after December 31, 2007, the | ||||||
22 | National Guard of any other state. The provisions of | ||||||
23 | this subparagraph (E) are exempt from the provisions | ||||||
24 | of Section 250; | ||||||
25 | (F) An amount equal to all amounts included in | ||||||
26 | such total pursuant to the provisions of Sections |
| |||||||
| |||||||
1 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and | ||||||
2 | 408 of the Internal Revenue Code, or included in such | ||||||
3 | total as distributions under the provisions of any | ||||||
4 | retirement or disability plan for employees of any | ||||||
5 | governmental agency or unit, or retirement payments to | ||||||
6 | retired partners, which payments are excluded in | ||||||
7 | computing net earnings from self employment by Section | ||||||
8 | 1402 of the Internal Revenue Code and regulations | ||||||
9 | adopted pursuant thereto; | ||||||
10 | (G) The valuation limitation amount; | ||||||
11 | (H) An amount equal to the amount of any tax | ||||||
12 | imposed by this Act which was refunded to the taxpayer | ||||||
13 | and included in such total for the taxable year; | ||||||
14 | (I) An amount equal to all amounts included in | ||||||
15 | such total pursuant to the provisions of Section 111 | ||||||
16 | of the Internal Revenue Code as a recovery of items | ||||||
17 | previously deducted from adjusted gross income in the | ||||||
18 | computation of taxable income; | ||||||
19 | (J) An amount equal to those dividends included in | ||||||
20 | such total which were paid by a corporation which | ||||||
21 | conducts business operations in a River Edge | ||||||
22 | Redevelopment Zone or zones created under the River | ||||||
23 | Edge Redevelopment Zone Act, and conducts | ||||||
24 | substantially all of its operations in a River Edge | ||||||
25 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
26 | exempt from the provisions of Section 250; |
| |||||||
| |||||||
1 | (K) An amount equal to those dividends included in | ||||||
2 | such total that were paid by a corporation that | ||||||
3 | conducts business operations in a federally designated | ||||||
4 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
5 | a High Impact Business located in Illinois; provided | ||||||
6 | that dividends eligible for the deduction provided in | ||||||
7 | subparagraph (J) of paragraph (2) of this subsection | ||||||
8 | shall not be eligible for the deduction provided under | ||||||
9 | this subparagraph (K); | ||||||
10 | (L) For taxable years ending after December 31, | ||||||
11 | 1983, an amount equal to all social security benefits | ||||||
12 | and railroad retirement benefits included in such | ||||||
13 | total pursuant to Sections 72(r) and 86 of the | ||||||
14 | Internal Revenue Code; | ||||||
15 | (M) With the exception of any amounts subtracted | ||||||
16 | under subparagraph (N), an amount equal to the sum of | ||||||
17 | all amounts disallowed as deductions by (i) Sections | ||||||
18 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
19 | and all amounts of expenses allocable to interest and | ||||||
20 | disallowed as deductions by Section 265(a)(1) of the | ||||||
21 | Internal Revenue Code; and (ii) for taxable years | ||||||
22 | ending on or after August 13, 1999, Sections | ||||||
23 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
24 | Internal Revenue Code, plus, for taxable years ending | ||||||
25 | on or after December 31, 2011, Section 45G(e)(3) of | ||||||
26 | the Internal Revenue Code and, for taxable years |
| |||||||
| |||||||
1 | ending on or after December 31, 2008, any amount | ||||||
2 | included in gross income under Section 87 of the | ||||||
3 | Internal Revenue Code; the provisions of this | ||||||
4 | subparagraph are exempt from the provisions of Section | ||||||
5 | 250; | ||||||
6 | (N) An amount equal to all amounts included in | ||||||
7 | such total which are exempt from taxation by this | ||||||
8 | State either by reason of its statutes or Constitution | ||||||
9 | or by reason of the Constitution, treaties or statutes | ||||||
10 | of the 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 | ||||||
14 | net 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 |
| |||||||
| |||||||
1 | such total, received by the taxpayer as an | ||||||
2 | acceleration in the payment of life, endowment or | ||||||
3 | annuity benefits in advance of the time they would | ||||||
4 | otherwise be payable as an indemnity for a terminal | ||||||
5 | illness; | ||||||
6 | (R) An amount equal to the amount of any federal or | ||||||
7 | State bonus paid to veterans of the Persian Gulf War; | ||||||
8 | (S) An amount, to the extent included in adjusted | ||||||
9 | gross income, equal to the amount of a contribution | ||||||
10 | made in the taxable year on behalf of the taxpayer to a | ||||||
11 | medical care savings account established under the | ||||||
12 | Medical Care Savings Account Act or the Medical Care | ||||||
13 | Savings Account Act of 2000 to the extent the | ||||||
14 | contribution is accepted by the account administrator | ||||||
15 | as provided in that Act; | ||||||
16 | (T) An amount, to the extent included in adjusted | ||||||
17 | gross income, equal to the amount of interest earned | ||||||
18 | in the taxable year on a medical care savings account | ||||||
19 | established under the Medical Care Savings Account Act | ||||||
20 | or the Medical Care Savings Account Act of 2000 on | ||||||
21 | behalf of the taxpayer, other than interest added | ||||||
22 | pursuant to item (D-5) of this paragraph (2); | ||||||
23 | (U) For one taxable year beginning on or after | ||||||
24 | January 1, 1994, an amount equal to the total amount of | ||||||
25 | tax imposed and paid under subsections (a) and (b) of | ||||||
26 | Section 201 of this Act on grant amounts received by |
| |||||||
| |||||||
1 | the taxpayer under the Nursing Home Grant Assistance | ||||||
2 | Act during the taxpayer's taxable years 1992 and 1993; | ||||||
3 | (V) Beginning with tax years ending on or after | ||||||
4 | December 31, 1995 and ending with tax years ending on | ||||||
5 | or before December 31, 2004, an amount equal to the | ||||||
6 | amount paid by a taxpayer who is a self-employed | ||||||
7 | taxpayer, a partner of a partnership, or a shareholder | ||||||
8 | in a Subchapter S corporation for health insurance or | ||||||
9 | long-term care insurance for that taxpayer or that | ||||||
10 | taxpayer's spouse or dependents, to the extent that | ||||||
11 | the amount paid for that health insurance or long-term | ||||||
12 | care insurance may be deducted under Section 213 of | ||||||
13 | the Internal Revenue Code, has not been deducted on | ||||||
14 | the federal income tax return of the taxpayer, and | ||||||
15 | does not exceed the taxable income attributable to | ||||||
16 | that taxpayer's income, self-employment income, or | ||||||
17 | Subchapter S corporation income; except that no | ||||||
18 | deduction shall be allowed under this item (V) if the | ||||||
19 | taxpayer is eligible to participate in any health | ||||||
20 | insurance or long-term care insurance plan of an | ||||||
21 | employer of the taxpayer or the taxpayer's spouse. The | ||||||
22 | amount of the health insurance and long-term care | ||||||
23 | insurance subtracted under this item (V) shall be | ||||||
24 | determined by multiplying total health insurance and | ||||||
25 | long-term care insurance premiums paid by the taxpayer | ||||||
26 | times a number that represents the fractional |
| |||||||
| |||||||
1 | percentage of eligible medical expenses under Section | ||||||
2 | 213 of the Internal Revenue Code of 1986 not actually | ||||||
3 | deducted on the taxpayer's federal income tax return; | ||||||
4 | (W) For taxable years beginning on or after | ||||||
5 | January 1, 1998, all amounts included in the | ||||||
6 | taxpayer's federal gross income in the taxable year | ||||||
7 | from amounts converted from a regular IRA to a Roth | ||||||
8 | IRA. This paragraph is exempt from the provisions of | ||||||
9 | Section 250; | ||||||
10 | (X) For taxable year 1999 and thereafter, an | ||||||
11 | amount equal to the amount of any (i) distributions, | ||||||
12 | to the extent includible in gross income for federal | ||||||
13 | income tax purposes, made to the taxpayer because of | ||||||
14 | his or her status as a victim of persecution for racial | ||||||
15 | or religious reasons by Nazi Germany or any other Axis | ||||||
16 | regime or as an heir of the victim and (ii) items of | ||||||
17 | income, to the extent includible in gross income for | ||||||
18 | federal income tax purposes, attributable to, derived | ||||||
19 | from or in any way related to assets stolen from, | ||||||
20 | hidden from, or otherwise lost to a victim of | ||||||
21 | persecution for racial or religious reasons by Nazi | ||||||
22 | Germany or any other Axis regime immediately prior to, | ||||||
23 | during, and immediately after World War II, including, | ||||||
24 | but not limited to, interest on the proceeds | ||||||
25 | receivable as insurance under policies issued to a | ||||||
26 | victim of persecution for racial or religious reasons |
| |||||||
| |||||||
1 | by Nazi Germany or any other Axis regime by European | ||||||
2 | insurance companies immediately prior to and during | ||||||
3 | World War II; provided, however, this subtraction from | ||||||
4 | federal adjusted gross income does not apply to assets | ||||||
5 | acquired with such assets or with the proceeds from | ||||||
6 | the sale of such assets; provided, further, this | ||||||
7 | paragraph shall only apply to a taxpayer who was the | ||||||
8 | first recipient of such assets after their recovery | ||||||
9 | and who is a victim of persecution for racial or | ||||||
10 | religious reasons by Nazi Germany or any other Axis | ||||||
11 | regime or as an heir of the victim. The amount of and | ||||||
12 | the eligibility for any public assistance, benefit, or | ||||||
13 | similar entitlement is not affected by the inclusion | ||||||
14 | of items (i) and (ii) of this paragraph in gross income | ||||||
15 | for federal income tax purposes. This paragraph is | ||||||
16 | exempt from the provisions of Section 250; | ||||||
17 | (Y) For taxable years beginning on or after | ||||||
18 | January 1, 2002 and ending on or before December 31, | ||||||
19 | 2004, moneys contributed in the taxable year to a | ||||||
20 | College Savings Pool account under Section 16.5 of the | ||||||
21 | State Treasurer Act (now known as a College, | ||||||
22 | Secondary, and Elementary Education Savings Pool) , | ||||||
23 | except that amounts excluded from gross income under | ||||||
24 | Section 529(c)(3)(C)(i) of the Internal Revenue Code | ||||||
25 | shall not be considered moneys contributed under this | ||||||
26 | subparagraph (Y). For taxable years beginning on or |
| |||||||
| |||||||
1 | after January 1, 2005, a maximum of $10,000 | ||||||
2 | contributed in the taxable year to (i) a College , | ||||||
3 | Secondary, and Elementary Education Savings Pool | ||||||
4 | account under Section 16.5 of the State Treasurer Act | ||||||
5 | or (ii) the Illinois Prepaid Tuition Trust Fund, | ||||||
6 | except that amounts excluded from gross income under | ||||||
7 | Section 529(c)(3)(C)(i) of the Internal Revenue Code | ||||||
8 | shall not be considered moneys contributed under this | ||||||
9 | subparagraph (Y). For purposes of this subparagraph, | ||||||
10 | contributions made by an employer on behalf of an | ||||||
11 | employee, or matching contributions made by an | ||||||
12 | employee, shall be treated as made by the employee. | ||||||
13 | This subparagraph (Y) is exempt from the provisions of | ||||||
14 | Section 250; | ||||||
15 | (Z) For taxable years 2001 and thereafter, for the | ||||||
16 | taxable year in which the bonus depreciation deduction | ||||||
17 | is taken on the taxpayer's federal income tax return | ||||||
18 | under subsection (k) of Section 168 of the Internal | ||||||
19 | Revenue Code and for each applicable taxable year | ||||||
20 | thereafter, an amount equal to "x", where: | ||||||
21 | (1) "y" equals the amount of the depreciation | ||||||
22 | deduction taken for the taxable year on the | ||||||
23 | taxpayer's federal income tax return on property | ||||||
24 | for which the bonus depreciation deduction was | ||||||
25 | taken in any year under subsection (k) of Section | ||||||
26 | 168 of the Internal Revenue Code, but not |
| |||||||
| |||||||
1 | including the bonus depreciation deduction; | ||||||
2 | (2) for taxable years ending on or before | ||||||
3 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
4 | and then divided by 70 (or "y" multiplied by | ||||||
5 | 0.429); and | ||||||
6 | (3) for taxable years ending after December | ||||||
7 | 31, 2005: | ||||||
8 | (i) for property on which a bonus | ||||||
9 | depreciation deduction of 30% of the adjusted | ||||||
10 | basis was taken, "x" equals "y" multiplied by | ||||||
11 | 30 and then divided by 70 (or "y" multiplied | ||||||
12 | by 0.429); | ||||||
13 | (ii) for property on which a bonus | ||||||
14 | depreciation deduction of 50% of the adjusted | ||||||
15 | basis was taken, "x" equals "y" multiplied by | ||||||
16 | 1.0; | ||||||
17 | (iii) for property on which a bonus | ||||||
18 | depreciation deduction of 100% of the adjusted | ||||||
19 | basis was taken in a taxable year ending on or | ||||||
20 | after December 31, 2021, "x" equals the | ||||||
21 | depreciation deduction that would be allowed | ||||||
22 | on that property if the taxpayer had made the | ||||||
23 | election under Section 168(k)(7) of the | ||||||
24 | Internal Revenue Code to not claim bonus | ||||||
25 | depreciation on that property; and | ||||||
26 | (iv) for property on which a bonus |
| |||||||
| |||||||
1 | depreciation deduction of a percentage other | ||||||
2 | than 30%, 50% or 100% of the adjusted basis | ||||||
3 | was taken in a taxable year ending on or after | ||||||
4 | December 31, 2021, "x" equals "y" multiplied | ||||||
5 | by 100 times the percentage bonus depreciation | ||||||
6 | on the property (that is, 100(bonus%)) and | ||||||
7 | then divided by 100 times 1 minus the | ||||||
8 | percentage bonus depreciation on the property | ||||||
9 | (that is, 100(1-bonus%)). | ||||||
10 | The aggregate amount deducted under this | ||||||
11 | subparagraph in all taxable years for any one piece of | ||||||
12 | property may not exceed the amount of the bonus | ||||||
13 | depreciation deduction taken on that property on the | ||||||
14 | taxpayer's federal income tax return under subsection | ||||||
15 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
16 | subparagraph (Z) is exempt from the provisions of | ||||||
17 | Section 250; | ||||||
18 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
19 | or otherwise disposes of property for which the | ||||||
20 | taxpayer was required in any taxable year to make an | ||||||
21 | addition modification under subparagraph (D-15), then | ||||||
22 | an amount equal to that addition modification. | ||||||
23 | If the taxpayer continues to own property through | ||||||
24 | the last day of the last tax year for which a | ||||||
25 | subtraction is allowed with respect to that property | ||||||
26 | under subparagraph (Z) and for which the taxpayer was |
| |||||||
| |||||||
1 | required in any taxable year to make an addition | ||||||
2 | modification under subparagraph (D-15), then an amount | ||||||
3 | equal to that addition modification. | ||||||
4 | The taxpayer is allowed to take the deduction | ||||||
5 | under this subparagraph only once with respect to any | ||||||
6 | one piece of property. | ||||||
7 | This subparagraph (AA) is exempt from the | ||||||
8 | provisions of Section 250; | ||||||
9 | (BB) Any amount included in adjusted gross income, | ||||||
10 | other than salary, received by a driver in a | ||||||
11 | ridesharing arrangement using a motor vehicle; | ||||||
12 | (CC) The amount of (i) any interest income (net of | ||||||
13 | the deductions allocable thereto) taken into account | ||||||
14 | for the taxable year with respect to a transaction | ||||||
15 | with a taxpayer that is required to make an addition | ||||||
16 | modification with respect to such transaction under | ||||||
17 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
18 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
19 | the amount of that addition modification, and (ii) any | ||||||
20 | income from intangible property (net of the deductions | ||||||
21 | allocable thereto) taken into account for the taxable | ||||||
22 | year with respect to a transaction with a taxpayer | ||||||
23 | that is required to make an addition modification with | ||||||
24 | respect to such transaction under Section | ||||||
25 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
26 | 203(d)(2)(D-8), but not to exceed the amount of that |
| |||||||
| |||||||
1 | addition modification. This subparagraph (CC) is | ||||||
2 | exempt from the provisions of Section 250; | ||||||
3 | (DD) An amount equal to the interest income taken | ||||||
4 | into account for the taxable year (net of the | ||||||
5 | deductions allocable thereto) with respect to | ||||||
6 | transactions with (i) a foreign person who would be a | ||||||
7 | member of the taxpayer's unitary business group but | ||||||
8 | for the fact that the foreign person's business | ||||||
9 | activity outside the United States is 80% or more of | ||||||
10 | that person's total business activity and (ii) for | ||||||
11 | taxable years ending on or after December 31, 2008, 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, but | ||||||
18 | not to exceed the addition modification required to be | ||||||
19 | made for the same taxable year under Section | ||||||
20 | 203(a)(2)(D-17) for interest paid, accrued, or | ||||||
21 | incurred, directly or indirectly, to the same person. | ||||||
22 | This subparagraph (DD) is exempt from the provisions | ||||||
23 | of Section 250; | ||||||
24 | (EE) An amount equal to the income from intangible | ||||||
25 | property taken into account for the taxable year (net | ||||||
26 | of the deductions allocable thereto) with respect to |
| |||||||
| |||||||
1 | transactions with (i) a foreign person who would be a | ||||||
2 | member of the taxpayer's unitary business group but | ||||||
3 | for the fact that the foreign person's business | ||||||
4 | activity outside the United States is 80% or more of | ||||||
5 | that person's total business activity and (ii) for | ||||||
6 | taxable years ending on or after December 31, 2008, to | ||||||
7 | a person who would be a member of the same unitary | ||||||
8 | business group but for the fact that the person is | ||||||
9 | prohibited under Section 1501(a)(27) from being | ||||||
10 | included in the unitary business group because he or | ||||||
11 | she is ordinarily required to apportion business | ||||||
12 | income under different subsections of Section 304, but | ||||||
13 | not to exceed the addition modification required to be | ||||||
14 | made for the same taxable year under Section | ||||||
15 | 203(a)(2)(D-18) for intangible expenses and costs | ||||||
16 | paid, accrued, or incurred, directly or indirectly, to | ||||||
17 | the same foreign person. This subparagraph (EE) is | ||||||
18 | exempt from the provisions of Section 250; | ||||||
19 | (FF) An amount equal to any amount awarded to the | ||||||
20 | taxpayer during the taxable year by the Court of | ||||||
21 | Claims under subsection (c) of Section 8 of the Court | ||||||
22 | of Claims Act for time unjustly served in a State | ||||||
23 | prison. This subparagraph (FF) is exempt from the | ||||||
24 | provisions of Section 250; | ||||||
25 | (GG) For taxable years ending on or after December | ||||||
26 | 31, 2011, in the case of a taxpayer who was required to |
| |||||||
| |||||||
1 | add back any insurance premiums under Section | ||||||
2 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
3 | that part of a reimbursement received from the | ||||||
4 | insurance company equal to the amount of the expense | ||||||
5 | or loss (including expenses incurred by the insurance | ||||||
6 | company) that would have been taken into account as a | ||||||
7 | deduction for federal income tax purposes if the | ||||||
8 | expense or loss had been uninsured. If a taxpayer | ||||||
9 | makes the election provided for by this subparagraph | ||||||
10 | (GG), the insurer to which the premiums were paid must | ||||||
11 | add back to income the amount subtracted by the | ||||||
12 | taxpayer pursuant to this subparagraph (GG). This | ||||||
13 | subparagraph (GG) is exempt from the provisions of | ||||||
14 | Section 250; | ||||||
15 | (HH) For taxable years beginning on or after | ||||||
16 | January 1, 2018 and prior to January 1, 2028, a maximum | ||||||
17 | of $10,000 contributed in the taxable year to a | ||||||
18 | qualified ABLE account under Section 16.6 of the State | ||||||
19 | Treasurer Act, except that amounts excluded from gross | ||||||
20 | income under Section 529(c)(3)(C)(i) or Section | ||||||
21 | 529A(c)(1)(C) of the Internal Revenue Code shall not | ||||||
22 | be considered moneys contributed under this | ||||||
23 | subparagraph (HH). For purposes of this subparagraph | ||||||
24 | (HH), contributions made by an employer on behalf of | ||||||
25 | an employee, or matching contributions made by an | ||||||
26 | employee, shall be treated as made by the employee; |
| |||||||
| |||||||
1 | (II) For taxable years that begin on or after | ||||||
2 | January 1, 2021 and begin before January 1, 2026, the | ||||||
3 | amount that is included in the taxpayer's federal | ||||||
4 | adjusted gross income pursuant to Section 61 of the | ||||||
5 | Internal Revenue Code as discharge of indebtedness | ||||||
6 | attributable to student loan forgiveness and that is | ||||||
7 | not excluded from the taxpayer's federal adjusted | ||||||
8 | gross income pursuant to paragraph (5) of subsection | ||||||
9 | (f) of Section 108 of the Internal Revenue Code; and | ||||||
10 | (JJ) For taxable years beginning on or after | ||||||
11 | January 1, 2023, for any cannabis establishment | ||||||
12 | operating in this State and licensed under the | ||||||
13 | Cannabis Regulation and Tax Act or any cannabis | ||||||
14 | cultivation center or medical cannabis dispensing | ||||||
15 | organization operating in this State and licensed | ||||||
16 | under the Compassionate Use of Medical Cannabis | ||||||
17 | Program Act, an amount equal to the deductions that | ||||||
18 | were disallowed under Section 280E of the Internal | ||||||
19 | Revenue Code for the taxable year and that would not be | ||||||
20 | added back under this subsection. The provisions of | ||||||
21 | this subparagraph (JJ) are exempt from the provisions | ||||||
22 | of Section 250 ; and . | ||||||
23 | (KK) (JJ) To the extent includible in gross income | ||||||
24 | for federal income tax purposes, any amount awarded or | ||||||
25 | paid to the taxpayer as a result of a judgment or | ||||||
26 | settlement for fertility fraud as provided in Section |
| |||||||
| |||||||
1 | 15 of the Illinois Fertility Fraud Act, donor | ||||||
2 | fertility fraud as provided in Section 20 of the | ||||||
3 | Illinois Fertility Fraud Act, or similar action in | ||||||
4 | another state. | ||||||
5 | (b) Corporations. | ||||||
6 | (1) In general. In the case of a corporation, base | ||||||
7 | income means an amount equal to the taxpayer's taxable | ||||||
8 | income for the taxable year as modified by paragraph (2). | ||||||
9 | (2) Modifications. The taxable income referred to in | ||||||
10 | paragraph (1) shall be modified by adding thereto the sum | ||||||
11 | of the following amounts: | ||||||
12 | (A) An amount equal to all amounts paid or accrued | ||||||
13 | to the taxpayer as interest and all distributions | ||||||
14 | received from regulated investment companies during | ||||||
15 | the taxable year to the extent excluded from gross | ||||||
16 | income in the computation of taxable income; | ||||||
17 | (B) An amount equal to the amount of tax imposed by | ||||||
18 | this Act to the extent deducted from gross income in | ||||||
19 | the computation of taxable income for the taxable | ||||||
20 | year; | ||||||
21 | (C) In the case of a regulated investment company, | ||||||
22 | an amount equal to the excess of (i) the net long-term | ||||||
23 | capital gain for the taxable year, over (ii) the | ||||||
24 | amount of the capital gain dividends designated as | ||||||
25 | such in accordance with Section 852(b)(3)(C) of the |
| |||||||
| |||||||
1 | Internal Revenue Code and any amount designated under | ||||||
2 | Section 852(b)(3)(D) of the Internal Revenue Code, | ||||||
3 | attributable to the taxable year (this amendatory Act | ||||||
4 | of 1995 (Public Act 89-89) is declarative of existing | ||||||
5 | law and is not a new enactment); | ||||||
6 | (D) The amount of any net operating loss deduction | ||||||
7 | taken in arriving at taxable income, other than a net | ||||||
8 | operating loss carried forward from a taxable year | ||||||
9 | ending prior to December 31, 1986; | ||||||
10 | (E) For taxable years in which a net operating | ||||||
11 | loss carryback or carryforward from a taxable year | ||||||
12 | ending prior to December 31, 1986 is an element of | ||||||
13 | taxable income under paragraph (1) of subsection (e) | ||||||
14 | or subparagraph (E) of paragraph (2) of subsection | ||||||
15 | (e), the amount by which addition modifications other | ||||||
16 | than those provided by this subparagraph (E) exceeded | ||||||
17 | subtraction modifications in such earlier taxable | ||||||
18 | year, with the following limitations applied in the | ||||||
19 | order that they are listed: | ||||||
20 | (i) the addition modification relating to the | ||||||
21 | net operating loss carried back or forward to the | ||||||
22 | taxable year from any taxable year ending prior to | ||||||
23 | December 31, 1986 shall be reduced by the amount | ||||||
24 | of addition modification under this subparagraph | ||||||
25 | (E) which related to that net operating loss and | ||||||
26 | which was taken into account in calculating the |
| |||||||
| |||||||
1 | base income of an earlier taxable year, and | ||||||
2 | (ii) the addition modification relating to the | ||||||
3 | net operating loss carried back or forward to the | ||||||
4 | taxable year from any taxable year ending prior to | ||||||
5 | December 31, 1986 shall not exceed the amount of | ||||||
6 | such carryback or carryforward; | ||||||
7 | For taxable years in which there is a net | ||||||
8 | operating loss carryback or carryforward from more | ||||||
9 | than one other taxable year ending prior to December | ||||||
10 | 31, 1986, the addition modification provided in this | ||||||
11 | subparagraph (E) shall be the sum of the amounts | ||||||
12 | computed independently under the preceding provisions | ||||||
13 | of this subparagraph (E) for each such taxable year; | ||||||
14 | (E-5) For taxable years ending after December 31, | ||||||
15 | 1997, an amount equal to any eligible remediation | ||||||
16 | costs that the corporation deducted in computing | ||||||
17 | adjusted gross income and for which the corporation | ||||||
18 | claims a credit under subsection (l) of Section 201; | ||||||
19 | (E-10) For taxable years 2001 and thereafter, an | ||||||
20 | amount equal to the bonus depreciation deduction taken | ||||||
21 | on the taxpayer's federal income tax return for the | ||||||
22 | taxable year under subsection (k) of Section 168 of | ||||||
23 | the Internal Revenue Code; | ||||||
24 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
25 | or otherwise disposes of property for which the | ||||||
26 | taxpayer was required in any taxable year to make an |
| |||||||
| |||||||
1 | addition modification under subparagraph (E-10), then | ||||||
2 | an amount equal to the aggregate amount of the | ||||||
3 | deductions taken in all taxable years under | ||||||
4 | subparagraph (T) with respect to that property. | ||||||
5 | If the taxpayer continues to own property through | ||||||
6 | the last day of the last tax year for which a | ||||||
7 | subtraction is allowed with respect to that property | ||||||
8 | under subparagraph (T) and for which the taxpayer was | ||||||
9 | allowed in any taxable year to make a subtraction | ||||||
10 | modification under subparagraph (T), then an amount | ||||||
11 | equal to that subtraction modification. | ||||||
12 | The taxpayer is required to make the addition | ||||||
13 | modification under this subparagraph only once with | ||||||
14 | respect to any one piece of property; | ||||||
15 | (E-12) An amount equal to the amount otherwise | ||||||
16 | allowed as a deduction in computing base income for | ||||||
17 | interest paid, accrued, or incurred, directly or | ||||||
18 | indirectly, (i) for taxable years ending on or after | ||||||
19 | December 31, 2004, to a foreign person who would be a | ||||||
20 | member of the same unitary business group but for the | ||||||
21 | fact the foreign person's business activity outside | ||||||
22 | the United States is 80% or more of the foreign | ||||||
23 | person's total business activity and (ii) for taxable | ||||||
24 | years ending on or after December 31, 2008, to a person | ||||||
25 | who would be a member of the same unitary business | ||||||
26 | group but for the fact that the person is prohibited |
| |||||||
| |||||||
1 | under Section 1501(a)(27) from being included in the | ||||||
2 | unitary business group because he or she is ordinarily | ||||||
3 | required to apportion business income under different | ||||||
4 | subsections of Section 304. The addition modification | ||||||
5 | required by this subparagraph shall be reduced to the | ||||||
6 | extent that dividends were included in base income of | ||||||
7 | the unitary group for the same taxable year and | ||||||
8 | received by the taxpayer or by a member of the | ||||||
9 | taxpayer's unitary business group (including amounts | ||||||
10 | included in gross income pursuant to Sections 951 | ||||||
11 | through 964 of the Internal Revenue Code and amounts | ||||||
12 | included in gross income under Section 78 of the | ||||||
13 | Internal Revenue Code) with respect to the stock of | ||||||
14 | the same person to whom the interest was paid, | ||||||
15 | accrued, or incurred. | ||||||
16 | This paragraph shall not apply to the following: | ||||||
17 | (i) an item of interest paid, accrued, or | ||||||
18 | incurred, directly or indirectly, to a person who | ||||||
19 | is subject in a foreign country or state, other | ||||||
20 | than a state which requires mandatory unitary | ||||||
21 | reporting, to a tax on or measured by net income | ||||||
22 | with respect to such interest; or | ||||||
23 | (ii) an item of interest paid, accrued, or | ||||||
24 | incurred, directly or indirectly, to a person if | ||||||
25 | the taxpayer can establish, based on a | ||||||
26 | preponderance of the evidence, both of the |
| |||||||
| |||||||
1 | following: | ||||||
2 | (a) the person, during the same taxable | ||||||
3 | year, paid, accrued, or incurred, the interest | ||||||
4 | to a person that is not a related member, and | ||||||
5 | (b) the transaction giving rise to the | ||||||
6 | interest expense between the taxpayer and the | ||||||
7 | person did not have as a principal purpose the | ||||||
8 | avoidance of Illinois income tax, and is paid | ||||||
9 | pursuant to a contract or agreement that | ||||||
10 | reflects an arm's-length interest rate and | ||||||
11 | terms; or | ||||||
12 | (iii) the taxpayer can establish, based on | ||||||
13 | clear and convincing evidence, that the interest | ||||||
14 | paid, accrued, or incurred relates to a contract | ||||||
15 | or agreement entered into at arm's-length rates | ||||||
16 | and terms and the principal purpose for the | ||||||
17 | payment is not federal or Illinois tax avoidance; | ||||||
18 | or | ||||||
19 | (iv) an item of interest paid, accrued, or | ||||||
20 | incurred, directly or indirectly, to a person if | ||||||
21 | the taxpayer establishes by clear and convincing | ||||||
22 | evidence that the adjustments are unreasonable; or | ||||||
23 | if the taxpayer and the Director agree in writing | ||||||
24 | to the application or use of an alternative method | ||||||
25 | of apportionment under Section 304(f). | ||||||
26 | Nothing in this subsection shall preclude the |
| |||||||
| |||||||
1 | Director from making any other adjustment | ||||||
2 | otherwise allowed under Section 404 of this Act | ||||||
3 | for any tax year beginning after the effective | ||||||
4 | date of this amendment provided such adjustment is | ||||||
5 | made pursuant to regulation adopted by the | ||||||
6 | Department and such regulations provide methods | ||||||
7 | and standards by which the Department will utilize | ||||||
8 | its authority under Section 404 of this Act; | ||||||
9 | (E-13) An amount equal to the amount of intangible | ||||||
10 | expenses and costs otherwise allowed as a deduction in | ||||||
11 | computing base income, and that were paid, accrued, or | ||||||
12 | incurred, directly or indirectly, (i) for taxable | ||||||
13 | years ending on or after December 31, 2004, to a | ||||||
14 | foreign person who would be a member of the same | ||||||
15 | unitary business group but for the fact that the | ||||||
16 | foreign person's business activity outside the United | ||||||
17 | States is 80% or more of that person's total business | ||||||
18 | activity and (ii) for taxable years ending on or after | ||||||
19 | December 31, 2008, to a person who would be a member of | ||||||
20 | the same unitary business group but for the fact that | ||||||
21 | the person is prohibited under Section 1501(a)(27) | ||||||
22 | from being included in the unitary business group | ||||||
23 | because he or she is ordinarily required to apportion | ||||||
24 | business income under different subsections of Section | ||||||
25 | 304. The addition modification required by this | ||||||
26 | subparagraph shall be reduced to the extent that |
| |||||||
| |||||||
1 | dividends were included in base income of the unitary | ||||||
2 | group for the same taxable year and received by the | ||||||
3 | taxpayer or by a member of the taxpayer's unitary | ||||||
4 | business group (including amounts included in gross | ||||||
5 | income pursuant to Sections 951 through 964 of the | ||||||
6 | Internal Revenue Code and amounts included in gross | ||||||
7 | income under Section 78 of the Internal Revenue Code) | ||||||
8 | with respect to the stock of the same person to whom | ||||||
9 | the intangible expenses and costs were directly or | ||||||
10 | indirectly paid, incurred, or accrued. The preceding | ||||||
11 | sentence shall not apply to the extent that the same | ||||||
12 | dividends caused a reduction to the addition | ||||||
13 | modification required under Section 203(b)(2)(E-12) of | ||||||
14 | this Act. As used in this subparagraph, the term | ||||||
15 | "intangible expenses and costs" includes (1) expenses, | ||||||
16 | losses, and costs for, or related to, the direct or | ||||||
17 | indirect acquisition, use, maintenance or management, | ||||||
18 | ownership, sale, exchange, or any other disposition of | ||||||
19 | intangible property; (2) losses incurred, directly or | ||||||
20 | indirectly, from factoring transactions or discounting | ||||||
21 | transactions; (3) royalty, patent, technical, and | ||||||
22 | copyright fees; (4) licensing fees; and (5) other | ||||||
23 | similar expenses and costs. For purposes of this | ||||||
24 | subparagraph, "intangible property" includes patents, | ||||||
25 | patent applications, trade names, trademarks, service | ||||||
26 | marks, copyrights, mask works, trade secrets, and |
| |||||||
| |||||||
1 | similar types of intangible assets. | ||||||
2 | This paragraph shall not apply to the following: | ||||||
3 | (i) any item of intangible expenses or costs | ||||||
4 | paid, accrued, or incurred, directly or | ||||||
5 | indirectly, from a transaction with a person who | ||||||
6 | is subject in a foreign country or state, other | ||||||
7 | than a state which requires mandatory unitary | ||||||
8 | reporting, to a tax on or measured by net income | ||||||
9 | with respect to such item; or | ||||||
10 | (ii) any item of intangible expense or cost | ||||||
11 | paid, accrued, or incurred, directly or | ||||||
12 | indirectly, if the taxpayer can establish, based | ||||||
13 | on a preponderance of the evidence, both of the | ||||||
14 | following: | ||||||
15 | (a) the person during the same taxable | ||||||
16 | year paid, accrued, or incurred, the | ||||||
17 | intangible expense or cost to a person that is | ||||||
18 | not a related member, and | ||||||
19 | (b) the transaction giving rise to the | ||||||
20 | intangible expense or cost between the | ||||||
21 | taxpayer and the person did not have as a | ||||||
22 | principal purpose the avoidance of Illinois | ||||||
23 | income tax, and is paid pursuant to a contract | ||||||
24 | or agreement that reflects arm's-length terms; | ||||||
25 | or | ||||||
26 | (iii) any item of intangible expense or cost |
| |||||||
| |||||||
1 | paid, accrued, or incurred, directly or | ||||||
2 | indirectly, from a transaction with a person if | ||||||
3 | the taxpayer establishes by clear and convincing | ||||||
4 | evidence, that the adjustments are unreasonable; | ||||||
5 | or if the taxpayer and the Director agree in | ||||||
6 | writing to the application or use of an | ||||||
7 | alternative method of apportionment under Section | ||||||
8 | 304(f); | ||||||
9 | Nothing in this subsection shall preclude the | ||||||
10 | Director from making any other adjustment | ||||||
11 | otherwise allowed under Section 404 of this Act | ||||||
12 | for any tax year beginning after the effective | ||||||
13 | date of this amendment provided such adjustment is | ||||||
14 | made pursuant to regulation adopted by the | ||||||
15 | Department and such regulations provide methods | ||||||
16 | and standards by which the Department will utilize | ||||||
17 | its authority under Section 404 of this Act; | ||||||
18 | (E-14) For taxable years ending on or after | ||||||
19 | December 31, 2008, an amount equal to the amount of | ||||||
20 | insurance premium expenses and costs otherwise allowed | ||||||
21 | as a deduction in computing base income, and that were | ||||||
22 | paid, accrued, or incurred, directly or indirectly, to | ||||||
23 | a person who would be a member of the same unitary | ||||||
24 | business group but for the fact that the person is | ||||||
25 | prohibited under Section 1501(a)(27) from being | ||||||
26 | included in the unitary business group because he or |
| |||||||
| |||||||
1 | she is ordinarily required to apportion business | ||||||
2 | income under different subsections of Section 304. The | ||||||
3 | addition modification required by this subparagraph | ||||||
4 | shall be reduced to the extent that dividends were | ||||||
5 | included in base income of the unitary group for the | ||||||
6 | same taxable year and received by the taxpayer or by a | ||||||
7 | member of the taxpayer's unitary business group | ||||||
8 | (including amounts included in gross income under | ||||||
9 | Sections 951 through 964 of the Internal Revenue Code | ||||||
10 | and amounts included in gross income under Section 78 | ||||||
11 | of the Internal Revenue Code) with respect to the | ||||||
12 | stock of the same person to whom the premiums and costs | ||||||
13 | were directly or indirectly paid, incurred, or | ||||||
14 | accrued. The preceding sentence does not apply to the | ||||||
15 | extent that the same dividends caused a reduction to | ||||||
16 | the addition modification required under Section | ||||||
17 | 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this | ||||||
18 | Act; | ||||||
19 | (E-15) For taxable years beginning after December | ||||||
20 | 31, 2008, any deduction for dividends paid by a | ||||||
21 | captive real estate investment trust that is allowed | ||||||
22 | to a real estate investment trust under Section | ||||||
23 | 857(b)(2)(B) of the Internal Revenue Code for | ||||||
24 | dividends paid; | ||||||
25 | (E-16) An amount equal to the credit allowable to | ||||||
26 | the taxpayer under Section 218(a) of this Act, |
| |||||||
| |||||||
1 | determined without regard to Section 218(c) of this | ||||||
2 | Act; | ||||||
3 | (E-17) For taxable years ending on or after | ||||||
4 | December 31, 2017, an amount equal to the deduction | ||||||
5 | allowed under Section 199 of the Internal Revenue Code | ||||||
6 | for the taxable year; | ||||||
7 | (E-18) for taxable years beginning after December | ||||||
8 | 31, 2018, an amount equal to the deduction allowed | ||||||
9 | under Section 250(a)(1)(A) of the Internal Revenue | ||||||
10 | Code for the taxable year; | ||||||
11 | (E-19) for taxable years ending on or after June | ||||||
12 | 30, 2021, an amount equal to the deduction allowed | ||||||
13 | under Section 250(a)(1)(B)(i) of the Internal Revenue | ||||||
14 | Code for the taxable year; | ||||||
15 | (E-20) for taxable years ending on or after June | ||||||
16 | 30, 2021, an amount equal to the deduction allowed | ||||||
17 | under Sections 243(e) and 245A(a) of the Internal | ||||||
18 | Revenue Code for the taxable year. | ||||||
19 | and by deducting from the total so obtained the sum of the | ||||||
20 | following amounts: | ||||||
21 | (F) An amount equal to the amount of any tax | ||||||
22 | imposed by this Act which was refunded to the taxpayer | ||||||
23 | and included in such total for the taxable year; | ||||||
24 | (G) An amount equal to any amount included in such | ||||||
25 | total under Section 78 of the Internal Revenue Code; | ||||||
26 | (H) In the case of a regulated investment company, |
| |||||||
| |||||||
1 | an amount equal to the amount of exempt interest | ||||||
2 | dividends as defined in subsection (b)(5) of Section | ||||||
3 | 852 of the Internal Revenue Code, paid to shareholders | ||||||
4 | for the taxable year; | ||||||
5 | (I) With the exception of any amounts subtracted | ||||||
6 | under subparagraph (J), an amount equal to the sum of | ||||||
7 | all amounts disallowed as deductions by (i) Sections | ||||||
8 | 171(a)(2) and 265(a)(2) and amounts disallowed as | ||||||
9 | interest expense by Section 291(a)(3) of the Internal | ||||||
10 | Revenue Code, and all amounts of expenses allocable to | ||||||
11 | interest and disallowed as deductions by Section | ||||||
12 | 265(a)(1) of the Internal Revenue Code; and (ii) for | ||||||
13 | taxable years ending on or after August 13, 1999, | ||||||
14 | Sections 171(a)(2), 265, 280C, 291(a)(3), and | ||||||
15 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
16 | for tax years ending on or after December 31, 2011, | ||||||
17 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
18 | of the Internal Revenue Code and, for taxable years | ||||||
19 | ending on or after December 31, 2008, any amount | ||||||
20 | included in gross income under Section 87 of the | ||||||
21 | Internal Revenue Code and the policyholders' share of | ||||||
22 | tax-exempt interest of a life insurance company under | ||||||
23 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
24 | the case of a life insurance company with gross income | ||||||
25 | from a decrease in reserves for the tax year) or | ||||||
26 | Section 807(b)(1)(B) of the Internal Revenue Code (in |
| |||||||
| |||||||
1 | the case of a life insurance company allowed a | ||||||
2 | deduction for an increase in reserves for the tax | ||||||
3 | year); the provisions of this subparagraph are exempt | ||||||
4 | from the provisions of Section 250; | ||||||
5 | (J) An amount equal to all amounts included in | ||||||
6 | such total which are exempt from taxation by this | ||||||
7 | State either by reason of its statutes or Constitution | ||||||
8 | or by reason of the Constitution, treaties or statutes | ||||||
9 | of the United States; provided that, in the case of any | ||||||
10 | statute of this State that exempts income derived from | ||||||
11 | bonds or other obligations from the tax imposed under | ||||||
12 | this Act, the amount exempted shall be the interest | ||||||
13 | net of bond premium amortization; | ||||||
14 | (K) An amount equal to those dividends included in | ||||||
15 | such total which were paid by a corporation which | ||||||
16 | conducts business operations in a River Edge | ||||||
17 | Redevelopment Zone or zones created under the River | ||||||
18 | Edge Redevelopment Zone Act and conducts substantially | ||||||
19 | all of its operations in a River Edge Redevelopment | ||||||
20 | Zone or zones. This subparagraph (K) is exempt from | ||||||
21 | the provisions of Section 250; | ||||||
22 | (L) 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 | ||||||
26 | a 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 (L); | ||||||
5 | (M) For any taxpayer that is a financial | ||||||
6 | organization within the meaning of Section 304(c) of | ||||||
7 | this Act, an amount included in such total as interest | ||||||
8 | income from a loan or loans made by such taxpayer to a | ||||||
9 | borrower, to the extent that such a loan is secured by | ||||||
10 | property which is eligible for the River Edge | ||||||
11 | Redevelopment Zone Investment Credit. To determine the | ||||||
12 | portion of a loan or loans that is secured by property | ||||||
13 | eligible for a Section 201(f) investment credit to the | ||||||
14 | borrower, the entire principal amount of the loan or | ||||||
15 | loans between the taxpayer and the borrower should be | ||||||
16 | divided into the basis of the Section 201(f) | ||||||
17 | investment credit property which secures the loan or | ||||||
18 | loans, using for this purpose the original basis of | ||||||
19 | such property on the date that it was placed in service | ||||||
20 | in the River Edge Redevelopment Zone. The subtraction | ||||||
21 | modification available to the taxpayer in any year | ||||||
22 | under this subsection shall be that portion of the | ||||||
23 | total interest paid by the borrower with respect to | ||||||
24 | such loan attributable to the eligible property as | ||||||
25 | calculated under the previous sentence. This | ||||||
26 | subparagraph (M) is exempt from the provisions of |
| |||||||
| |||||||
1 | Section 250; | ||||||
2 | (M-1) For any taxpayer that is a financial | ||||||
3 | organization within the meaning of Section 304(c) of | ||||||
4 | this Act, an amount included in such total as interest | ||||||
5 | income from a loan or loans made by such taxpayer to a | ||||||
6 | borrower, to the extent that such a loan is secured by | ||||||
7 | property which is eligible for the High Impact | ||||||
8 | Business Investment Credit. To determine the portion | ||||||
9 | of a loan or loans that is secured by property eligible | ||||||
10 | for a Section 201(h) investment credit to the | ||||||
11 | borrower, the entire principal amount of the loan or | ||||||
12 | loans between the taxpayer and the borrower should be | ||||||
13 | divided into the basis of the Section 201(h) | ||||||
14 | investment credit property which secures the loan or | ||||||
15 | loans, using for this purpose the original basis of | ||||||
16 | such property on the date that it was placed in service | ||||||
17 | in a federally designated Foreign Trade Zone or | ||||||
18 | Sub-Zone located in Illinois. No taxpayer that is | ||||||
19 | eligible for the deduction provided in subparagraph | ||||||
20 | (M) of paragraph (2) of this subsection shall be | ||||||
21 | eligible for the deduction provided under this | ||||||
22 | subparagraph (M-1). The subtraction modification | ||||||
23 | available to taxpayers in any year under this | ||||||
24 | subsection shall be that portion of the total interest | ||||||
25 | paid by the borrower with respect to such loan | ||||||
26 | attributable to the eligible property as calculated |
| |||||||
| |||||||
1 | under the previous sentence; | ||||||
2 | (N) Two times any contribution made during the | ||||||
3 | taxable year to a designated zone organization to the | ||||||
4 | extent that the contribution (i) qualifies as a | ||||||
5 | charitable contribution under subsection (c) of | ||||||
6 | Section 170 of the Internal Revenue Code and (ii) | ||||||
7 | must, by its terms, be used for a project approved by | ||||||
8 | the Department of Commerce and Economic Opportunity | ||||||
9 | under Section 11 of the Illinois Enterprise Zone Act | ||||||
10 | or under Section 10-10 of the River Edge Redevelopment | ||||||
11 | Zone Act. This subparagraph (N) is exempt from the | ||||||
12 | provisions of Section 250; | ||||||
13 | (O) An amount equal to: (i) 85% for taxable years | ||||||
14 | ending on or before December 31, 1992, or, a | ||||||
15 | percentage equal to the percentage allowable under | ||||||
16 | Section 243(a)(1) of the Internal Revenue Code of 1986 | ||||||
17 | for taxable years ending after December 31, 1992, of | ||||||
18 | the amount by which dividends included in taxable | ||||||
19 | income and received from a corporation that is not | ||||||
20 | created or organized under the laws of the United | ||||||
21 | States or any state or political subdivision thereof, | ||||||
22 | including, for taxable years ending on or after | ||||||
23 | December 31, 1988, dividends received or deemed | ||||||
24 | received or paid or deemed paid under Sections 951 | ||||||
25 | through 965 of the Internal Revenue Code, exceed the | ||||||
26 | amount of the modification provided under subparagraph |
| |||||||
| |||||||
1 | (G) of paragraph (2) of this subsection (b) which is | ||||||
2 | related to such dividends, and including, for taxable | ||||||
3 | years ending on or after December 31, 2008, dividends | ||||||
4 | received from a captive real estate investment trust; | ||||||
5 | plus (ii) 100% of the amount by which dividends, | ||||||
6 | included in taxable income and received, including, | ||||||
7 | for taxable years ending on or after December 31, | ||||||
8 | 1988, dividends received or deemed received or paid or | ||||||
9 | deemed paid under Sections 951 through 964 of the | ||||||
10 | Internal Revenue Code and including, for taxable years | ||||||
11 | ending on or after December 31, 2008, dividends | ||||||
12 | received from a captive real estate investment trust, | ||||||
13 | from any such corporation specified in clause (i) that | ||||||
14 | would but for the provisions of Section 1504(b)(3) of | ||||||
15 | the Internal Revenue Code be treated as a member of the | ||||||
16 | affiliated group which includes the dividend | ||||||
17 | recipient, exceed the amount of the modification | ||||||
18 | provided under subparagraph (G) of paragraph (2) of | ||||||
19 | this subsection (b) which is related to such | ||||||
20 | dividends. For taxable years ending on or after June | ||||||
21 | 30, 2021, (i) for purposes of this subparagraph, the | ||||||
22 | term "dividend" does not include any amount treated as | ||||||
23 | a dividend under Section 1248 of the Internal Revenue | ||||||
24 | Code, and (ii) this subparagraph shall not apply to | ||||||
25 | dividends for which a deduction is allowed under | ||||||
26 | Section 245(a) of the Internal Revenue Code. This |
| |||||||
| |||||||
1 | subparagraph (O) is exempt from the provisions of | ||||||
2 | Section 250 of this Act; | ||||||
3 | (P) An amount equal to any contribution made to a | ||||||
4 | job training project established pursuant to the Tax | ||||||
5 | Increment Allocation Redevelopment Act; | ||||||
6 | (Q) An amount equal to the amount of the deduction | ||||||
7 | used to compute the federal income tax credit for | ||||||
8 | restoration of substantial amounts held under claim of | ||||||
9 | right for the taxable year pursuant to Section 1341 of | ||||||
10 | the Internal Revenue Code; | ||||||
11 | (R) On and after July 20, 1999, in the case of an | ||||||
12 | attorney-in-fact with respect to whom an interinsurer | ||||||
13 | or a reciprocal insurer has made the election under | ||||||
14 | Section 835 of the Internal Revenue Code, 26 U.S.C. | ||||||
15 | 835, an amount equal to the excess, if any, of the | ||||||
16 | amounts paid or incurred by that interinsurer or | ||||||
17 | reciprocal insurer in the taxable year to the | ||||||
18 | attorney-in-fact over the deduction allowed to that | ||||||
19 | interinsurer or reciprocal insurer with respect to the | ||||||
20 | attorney-in-fact under Section 835(b) of the Internal | ||||||
21 | Revenue Code for the taxable year; the provisions of | ||||||
22 | this subparagraph are exempt from the provisions of | ||||||
23 | Section 250; | ||||||
24 | (S) For taxable years ending on or after December | ||||||
25 | 31, 1997, in the case of a Subchapter S corporation, an | ||||||
26 | amount equal to all amounts of income allocable to a |
| |||||||
| |||||||
1 | shareholder subject to the Personal Property Tax | ||||||
2 | Replacement Income Tax imposed by subsections (c) and | ||||||
3 | (d) of Section 201 of this Act, including amounts | ||||||
4 | allocable to organizations exempt from federal income | ||||||
5 | tax by reason of Section 501(a) of the Internal | ||||||
6 | Revenue Code. This subparagraph (S) is exempt from the | ||||||
7 | provisions of Section 250; | ||||||
8 | (T) For taxable years 2001 and thereafter, for the | ||||||
9 | taxable year in which the bonus depreciation deduction | ||||||
10 | is taken on the taxpayer's federal income tax return | ||||||
11 | under subsection (k) of Section 168 of the Internal | ||||||
12 | Revenue Code and for each applicable taxable year | ||||||
13 | thereafter, an amount equal to "x", where: | ||||||
14 | (1) "y" equals the amount of the depreciation | ||||||
15 | deduction taken for the taxable year on the | ||||||
16 | taxpayer's federal income tax return on property | ||||||
17 | for which the bonus depreciation deduction was | ||||||
18 | taken in any year under subsection (k) of Section | ||||||
19 | 168 of the Internal Revenue Code, but not | ||||||
20 | including the bonus depreciation deduction; | ||||||
21 | (2) for taxable years ending on or before | ||||||
22 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
23 | and then divided by 70 (or "y" multiplied by | ||||||
24 | 0.429); and | ||||||
25 | (3) for taxable years ending after December | ||||||
26 | 31, 2005: |
| |||||||
| |||||||
1 | (i) for property on which a bonus | ||||||
2 | depreciation deduction of 30% of the adjusted | ||||||
3 | basis was taken, "x" equals "y" multiplied by | ||||||
4 | 30 and then divided by 70 (or "y" multiplied | ||||||
5 | by 0.429); | ||||||
6 | (ii) for property on which a bonus | ||||||
7 | depreciation deduction of 50% of the adjusted | ||||||
8 | basis was taken, "x" equals "y" multiplied by | ||||||
9 | 1.0; | ||||||
10 | (iii) for property on which a bonus | ||||||
11 | depreciation deduction of 100% of the adjusted | ||||||
12 | basis was taken in a taxable year ending on or | ||||||
13 | after December 31, 2021, "x" equals the | ||||||
14 | depreciation deduction that would be allowed | ||||||
15 | on that property if the taxpayer had made the | ||||||
16 | election under Section 168(k)(7) of the | ||||||
17 | Internal Revenue Code to not claim bonus | ||||||
18 | depreciation on that property; and | ||||||
19 | (iv) for property on which a bonus | ||||||
20 | depreciation deduction of a percentage other | ||||||
21 | than 30%, 50% or 100% of the adjusted basis | ||||||
22 | was taken in a taxable year ending on or after | ||||||
23 | December 31, 2021, "x" equals "y" multiplied | ||||||
24 | by 100 times the percentage bonus depreciation | ||||||
25 | on the property (that is, 100(bonus%)) and | ||||||
26 | then divided by 100 times 1 minus the |
| |||||||
| |||||||
1 | percentage bonus depreciation on the property | ||||||
2 | (that is, 100(1-bonus%)). | ||||||
3 | The aggregate amount deducted under this | ||||||
4 | subparagraph in all taxable years for any one piece of | ||||||
5 | property may not exceed the amount of the bonus | ||||||
6 | depreciation deduction taken on that property on the | ||||||
7 | taxpayer's federal income tax return under subsection | ||||||
8 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
9 | subparagraph (T) is exempt from the provisions of | ||||||
10 | Section 250; | ||||||
11 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
12 | otherwise disposes of property for which the taxpayer | ||||||
13 | was required in any taxable year to make an addition | ||||||
14 | modification under subparagraph (E-10), then an amount | ||||||
15 | equal to that addition modification. | ||||||
16 | If the taxpayer continues to own property through | ||||||
17 | the last day of the last tax year for which a | ||||||
18 | subtraction is allowed with respect to that property | ||||||
19 | under subparagraph (T) and for which the taxpayer was | ||||||
20 | required in any taxable year to make an addition | ||||||
21 | modification under subparagraph (E-10), then an amount | ||||||
22 | equal to that addition modification. | ||||||
23 | The taxpayer is allowed to take the deduction | ||||||
24 | under this subparagraph only once with respect to any | ||||||
25 | one piece of property. | ||||||
26 | This subparagraph (U) is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250; | ||||||
2 | (V) The amount of: (i) any interest income (net of | ||||||
3 | the deductions allocable thereto) taken into account | ||||||
4 | for the taxable year with respect to a transaction | ||||||
5 | with a taxpayer that is required to make an addition | ||||||
6 | modification with respect to such transaction under | ||||||
7 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
8 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
9 | the amount of such addition modification, (ii) any | ||||||
10 | income from intangible property (net of the deductions | ||||||
11 | allocable thereto) taken into account for the taxable | ||||||
12 | year with respect to a transaction with a taxpayer | ||||||
13 | that is required to make an addition modification with | ||||||
14 | respect to such transaction under Section | ||||||
15 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
16 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
17 | addition modification, and (iii) any insurance premium | ||||||
18 | income (net of deductions allocable thereto) taken | ||||||
19 | into account for the taxable year with respect to a | ||||||
20 | transaction with a taxpayer that is required to make | ||||||
21 | an addition modification with respect to such | ||||||
22 | transaction under Section 203(a)(2)(D-19), Section | ||||||
23 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
24 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
25 | addition modification. This subparagraph (V) is exempt | ||||||
26 | from the provisions of Section 250; |
| |||||||
| |||||||
1 | (W) An amount equal to the interest income taken | ||||||
2 | into account for the taxable year (net of the | ||||||
3 | deductions allocable thereto) with respect to | ||||||
4 | transactions with (i) a foreign person who would be a | ||||||
5 | member of the taxpayer's unitary business group but | ||||||
6 | for the fact that the foreign person's business | ||||||
7 | activity outside the United States is 80% or more of | ||||||
8 | that person's total business activity and (ii) for | ||||||
9 | taxable years ending on or after December 31, 2008, to | ||||||
10 | a person who would be a member of the same unitary | ||||||
11 | business group but for the fact that the person is | ||||||
12 | prohibited under Section 1501(a)(27) from being | ||||||
13 | included in the unitary business group because he or | ||||||
14 | she is ordinarily required to apportion business | ||||||
15 | income under different subsections of Section 304, but | ||||||
16 | not to exceed the addition modification required to be | ||||||
17 | made for the same taxable year under Section | ||||||
18 | 203(b)(2)(E-12) for interest paid, accrued, or | ||||||
19 | incurred, directly or indirectly, to the same person. | ||||||
20 | This subparagraph (W) is exempt from the provisions of | ||||||
21 | Section 250; | ||||||
22 | (X) 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 |
| |||||||
| |||||||
1 | for the fact that the foreign person's business | ||||||
2 | activity outside the United States is 80% or more of | ||||||
3 | that person's total business activity and (ii) for | ||||||
4 | taxable years ending on or after December 31, 2008, to | ||||||
5 | a person who would be a member of the same unitary | ||||||
6 | business group but for the fact that the person is | ||||||
7 | prohibited under Section 1501(a)(27) from being | ||||||
8 | included in the unitary business group because he or | ||||||
9 | she is ordinarily required to apportion business | ||||||
10 | income under different subsections of Section 304, but | ||||||
11 | not to exceed the addition modification required to be | ||||||
12 | made for the same taxable year under Section | ||||||
13 | 203(b)(2)(E-13) for intangible expenses and costs | ||||||
14 | paid, accrued, or incurred, directly or indirectly, to | ||||||
15 | the same foreign person. This subparagraph (X) is | ||||||
16 | exempt from the provisions of Section 250; | ||||||
17 | (Y) For taxable years ending on or after December | ||||||
18 | 31, 2011, in the case of a taxpayer who was required to | ||||||
19 | add back any insurance premiums under Section | ||||||
20 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
21 | that part of a reimbursement received from the | ||||||
22 | insurance company equal to the amount of the expense | ||||||
23 | or loss (including expenses incurred by the insurance | ||||||
24 | company) that would have been taken into account as a | ||||||
25 | deduction for federal income tax purposes if the | ||||||
26 | expense or loss had been uninsured. If a taxpayer |
| |||||||
| |||||||
1 | makes the election provided for by this subparagraph | ||||||
2 | (Y), the insurer to which the premiums were paid must | ||||||
3 | add back to income the amount subtracted by the | ||||||
4 | taxpayer pursuant to this subparagraph (Y). This | ||||||
5 | subparagraph (Y) is exempt from the provisions of | ||||||
6 | Section 250; | ||||||
7 | (Z) The difference between the nondeductible | ||||||
8 | controlled foreign corporation dividends under Section | ||||||
9 | 965(e)(3) of the Internal Revenue Code over the | ||||||
10 | taxable income of the taxpayer, computed without | ||||||
11 | regard to Section 965(e)(2)(A) of the Internal Revenue | ||||||
12 | Code, and without regard to any net operating loss | ||||||
13 | deduction. This subparagraph (Z) is exempt from the | ||||||
14 | provisions of Section 250; and | ||||||
15 | (AA) For taxable years beginning on or after | ||||||
16 | January 1, 2023, for any cannabis establishment | ||||||
17 | operating in this State and licensed under the | ||||||
18 | Cannabis Regulation and Tax Act or any cannabis | ||||||
19 | cultivation center or medical cannabis dispensing | ||||||
20 | organization operating in this State and licensed | ||||||
21 | under the Compassionate Use of Medical Cannabis | ||||||
22 | Program Act, an amount equal to the deductions that | ||||||
23 | were disallowed under Section 280E of the Internal | ||||||
24 | Revenue Code for the taxable year and that would not be | ||||||
25 | added back under this subsection. The provisions of | ||||||
26 | this subparagraph (AA) are exempt from the provisions |
| |||||||
| |||||||
1 | of Section 250. | ||||||
2 | (3) Special rule. For purposes of paragraph (2)(A), | ||||||
3 | "gross income" in the case of a life insurance company, | ||||||
4 | for tax years ending on and after December 31, 1994, and | ||||||
5 | prior to December 31, 2011, shall mean the gross | ||||||
6 | investment income for the taxable year and, for tax years | ||||||
7 | ending on or after December 31, 2011, shall mean all | ||||||
8 | amounts included in life insurance gross income under | ||||||
9 | Section 803(a)(3) of the Internal Revenue Code. | ||||||
10 | (c) Trusts and estates. | ||||||
11 | (1) In general. In the case of a trust or estate, base | ||||||
12 | income means an amount equal to the taxpayer's taxable | ||||||
13 | income for the taxable year as modified by paragraph (2). | ||||||
14 | (2) Modifications. Subject to the provisions of | ||||||
15 | paragraph (3), the taxable income referred to in paragraph | ||||||
16 | (1) shall be modified by adding thereto the sum of the | ||||||
17 | following amounts: | ||||||
18 | (A) An amount equal to all amounts paid or accrued | ||||||
19 | to the taxpayer as interest or dividends during the | ||||||
20 | taxable year to the extent excluded from gross income | ||||||
21 | in the computation of taxable income; | ||||||
22 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
23 | trust which, under its governing instrument, is | ||||||
24 | required to distribute all of its income currently, | ||||||
25 | $300; and (iii) any other trust, $100, but in each such |
| |||||||
| |||||||
1 | case, only to the extent such amount was deducted in | ||||||
2 | the computation of taxable income; | ||||||
3 | (C) An amount equal to the amount of tax imposed by | ||||||
4 | this Act to the extent deducted from gross income in | ||||||
5 | the computation of taxable income for the taxable | ||||||
6 | 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 | ||||||
12 | loss carryback or carryforward from a taxable year | ||||||
13 | ending prior to December 31, 1986 is an element of | ||||||
14 | taxable income under paragraph (1) of subsection (e) | ||||||
15 | or subparagraph (E) of paragraph (2) of subsection | ||||||
16 | (e), the amount by which addition modifications other | ||||||
17 | than 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 | ||||||
25 | of addition modification under this subparagraph | ||||||
26 | (E) which related to that net operating loss and |
| |||||||
| |||||||
1 | which was taken into account in calculating the | ||||||
2 | base 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 | ||||||
9 | operating loss carryback or carryforward from more | ||||||
10 | than one other taxable year ending prior to December | ||||||
11 | 31, 1986, the addition modification provided in this | ||||||
12 | subparagraph (E) shall be the sum of the amounts | ||||||
13 | computed independently under the preceding provisions | ||||||
14 | of this subparagraph (E) for each such taxable year; | ||||||
15 | (F) For taxable years ending on or after January | ||||||
16 | 1, 1989, an amount equal to the tax deducted pursuant | ||||||
17 | to Section 164 of the Internal Revenue Code if the | ||||||
18 | trust or estate is claiming the same tax for purposes | ||||||
19 | of the Illinois foreign tax credit under Section 601 | ||||||
20 | of this 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 |
| |||||||
| |||||||
1 | costs that the trust or estate deducted in computing | ||||||
2 | adjusted gross income and for which the trust or | ||||||
3 | estate claims a credit under subsection (l) of Section | ||||||
4 | 201; | ||||||
5 | (G-10) For taxable years 2001 and thereafter, an | ||||||
6 | amount equal to the bonus depreciation deduction taken | ||||||
7 | on the taxpayer's federal income tax return for the | ||||||
8 | taxable year under subsection (k) of Section 168 of | ||||||
9 | the Internal Revenue Code; and | ||||||
10 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
11 | or otherwise disposes of property for which the | ||||||
12 | taxpayer was required in any taxable year to make an | ||||||
13 | addition modification under subparagraph (G-10), then | ||||||
14 | an amount equal to the aggregate amount of the | ||||||
15 | deductions taken in all taxable years under | ||||||
16 | subparagraph (R) with respect to that property. | ||||||
17 | If the taxpayer continues to own property through | ||||||
18 | the last day of the last tax year for which a | ||||||
19 | subtraction is allowed with respect to that property | ||||||
20 | under subparagraph (R) and for which the taxpayer was | ||||||
21 | allowed in any taxable year to make a subtraction | ||||||
22 | modification under subparagraph (R), then an amount | ||||||
23 | equal to that subtraction modification. | ||||||
24 | The taxpayer is required to make the addition | ||||||
25 | modification under this subparagraph only once with | ||||||
26 | respect to any one piece of property; |
| |||||||
| |||||||
1 | (G-12) An amount equal to the amount otherwise | ||||||
2 | allowed as a deduction in computing base income for | ||||||
3 | interest paid, accrued, or incurred, directly or | ||||||
4 | indirectly, (i) for taxable years ending on or after | ||||||
5 | December 31, 2004, to a foreign person who would be a | ||||||
6 | member of the same unitary business group but for the | ||||||
7 | fact that the foreign person's business activity | ||||||
8 | outside the United States is 80% or more of the foreign | ||||||
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. The addition modification | ||||||
17 | required by this subparagraph shall be reduced to the | ||||||
18 | extent that dividends were included in base income of | ||||||
19 | the unitary group for the same taxable year and | ||||||
20 | received by the taxpayer or by a member of the | ||||||
21 | taxpayer's unitary business group (including amounts | ||||||
22 | included in gross income pursuant to Sections 951 | ||||||
23 | through 964 of the Internal Revenue Code and amounts | ||||||
24 | included in gross income under Section 78 of the | ||||||
25 | Internal Revenue Code) with respect to the stock of | ||||||
26 | the same person to whom the interest was paid, |
| |||||||
| |||||||
1 | accrued, or incurred. | ||||||
2 | This paragraph shall not apply to the following: | ||||||
3 | (i) an item of interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to a person who | ||||||
5 | is subject in a foreign country or state, other | ||||||
6 | than a state which requires mandatory unitary | ||||||
7 | reporting, to a tax on or measured by net income | ||||||
8 | with respect to such interest; or | ||||||
9 | (ii) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person if | ||||||
11 | the taxpayer can establish, based on a | ||||||
12 | preponderance of the evidence, both of the | ||||||
13 | following: | ||||||
14 | (a) the person, during the same taxable | ||||||
15 | year, paid, accrued, or incurred, the interest | ||||||
16 | to a person that is not a related member, and | ||||||
17 | (b) the transaction giving rise to the | ||||||
18 | interest expense between the taxpayer and the | ||||||
19 | person did not have as a principal purpose the | ||||||
20 | avoidance of Illinois income tax, and is paid | ||||||
21 | pursuant to a contract or agreement that | ||||||
22 | reflects an arm's-length interest rate and | ||||||
23 | terms; or | ||||||
24 | (iii) the taxpayer can establish, based on | ||||||
25 | clear and convincing evidence, that the interest | ||||||
26 | paid, accrued, or incurred relates to a contract |
| |||||||
| |||||||
1 | or agreement entered into at arm's-length rates | ||||||
2 | and terms and the principal purpose for the | ||||||
3 | payment is not federal or Illinois tax avoidance; | ||||||
4 | or | ||||||
5 | (iv) an item of interest paid, accrued, or | ||||||
6 | incurred, directly or indirectly, to a person if | ||||||
7 | the taxpayer establishes by clear and convincing | ||||||
8 | evidence that the adjustments are unreasonable; or | ||||||
9 | if the taxpayer and the Director agree in writing | ||||||
10 | to the application or use of an alternative method | ||||||
11 | of apportionment under Section 304(f). | ||||||
12 | Nothing in this subsection shall preclude the | ||||||
13 | Director from making any other adjustment | ||||||
14 | otherwise allowed under Section 404 of this Act | ||||||
15 | for any tax year beginning after the effective | ||||||
16 | date of this amendment provided such adjustment is | ||||||
17 | made pursuant to regulation adopted by the | ||||||
18 | Department and such regulations provide methods | ||||||
19 | and standards by which the Department will utilize | ||||||
20 | its authority under Section 404 of this Act; | ||||||
21 | (G-13) An amount equal to the amount of intangible | ||||||
22 | expenses and costs otherwise allowed as a deduction in | ||||||
23 | computing base income, and that were paid, accrued, or | ||||||
24 | incurred, directly or indirectly, (i) for taxable | ||||||
25 | years ending on or after December 31, 2004, to a | ||||||
26 | foreign person who would be a member of the same |
| |||||||
| |||||||
1 | unitary business group but for the fact that the | ||||||
2 | foreign person's business activity outside the United | ||||||
3 | States is 80% or more of that person's total business | ||||||
4 | activity and (ii) for taxable years ending on or after | ||||||
5 | December 31, 2008, to a person who would be a member of | ||||||
6 | the same unitary business group but for the fact that | ||||||
7 | the person is prohibited under Section 1501(a)(27) | ||||||
8 | from being included in the unitary business group | ||||||
9 | because he or she is ordinarily required to apportion | ||||||
10 | business income under different subsections of Section | ||||||
11 | 304. The addition modification required by this | ||||||
12 | subparagraph shall be reduced to the extent that | ||||||
13 | dividends were included in base income of the unitary | ||||||
14 | group for the same taxable year and received by the | ||||||
15 | taxpayer or by a member of the taxpayer's unitary | ||||||
16 | business group (including amounts included in gross | ||||||
17 | income pursuant to Sections 951 through 964 of the | ||||||
18 | Internal Revenue Code and amounts included in gross | ||||||
19 | income under Section 78 of the Internal Revenue Code) | ||||||
20 | with respect to the stock of the same person to whom | ||||||
21 | the intangible expenses and costs were directly or | ||||||
22 | indirectly paid, incurred, or accrued. The preceding | ||||||
23 | sentence shall not apply to the extent that the same | ||||||
24 | dividends caused a reduction to the addition | ||||||
25 | modification required under Section 203(c)(2)(G-12) of | ||||||
26 | this Act. As used in this subparagraph, the term |
| |||||||
| |||||||
1 | "intangible expenses and costs" includes: (1) | ||||||
2 | expenses, losses, and costs for or related to the | ||||||
3 | direct or indirect acquisition, use, maintenance or | ||||||
4 | management, ownership, sale, exchange, or any other | ||||||
5 | disposition of intangible property; (2) losses | ||||||
6 | incurred, directly or indirectly, from factoring | ||||||
7 | transactions or discounting transactions; (3) royalty, | ||||||
8 | patent, technical, and copyright fees; (4) licensing | ||||||
9 | fees; and (5) other similar expenses and costs. For | ||||||
10 | purposes of this subparagraph, "intangible property" | ||||||
11 | includes patents, patent applications, trade names, | ||||||
12 | trademarks, service marks, copyrights, mask works, | ||||||
13 | trade secrets, and similar types of intangible assets. | ||||||
14 | This paragraph shall not apply to the following: | ||||||
15 | (i) any item of intangible expenses or costs | ||||||
16 | paid, accrued, or incurred, directly or | ||||||
17 | indirectly, from a transaction with a person who | ||||||
18 | is subject in a foreign country or state, other | ||||||
19 | than a state which requires mandatory unitary | ||||||
20 | reporting, to a tax on or measured by net income | ||||||
21 | with respect to such item; or | ||||||
22 | (ii) any item of intangible expense or cost | ||||||
23 | paid, accrued, or incurred, directly or | ||||||
24 | indirectly, if the taxpayer can establish, based | ||||||
25 | on a preponderance of the evidence, both of the | ||||||
26 | following: |
| |||||||
| |||||||
1 | (a) the person during the same taxable | ||||||
2 | year paid, accrued, or incurred, the | ||||||
3 | intangible expense or cost to a person that is | ||||||
4 | not a related member, and | ||||||
5 | (b) the transaction giving rise to the | ||||||
6 | intangible expense or cost between the | ||||||
7 | taxpayer and the person did not have as a | ||||||
8 | principal purpose the avoidance of Illinois | ||||||
9 | income tax, and is paid pursuant to a contract | ||||||
10 | or agreement that reflects arm's-length terms; | ||||||
11 | or | ||||||
12 | (iii) any item of intangible expense or cost | ||||||
13 | paid, accrued, or incurred, directly or | ||||||
14 | indirectly, from a transaction with a person if | ||||||
15 | the taxpayer establishes by clear and convincing | ||||||
16 | evidence, that the adjustments are unreasonable; | ||||||
17 | or if the taxpayer and the Director agree in | ||||||
18 | writing to the application or use of an | ||||||
19 | alternative method of apportionment under Section | ||||||
20 | 304(f); | ||||||
21 | Nothing in this subsection shall preclude the | ||||||
22 | Director from making any other adjustment | ||||||
23 | otherwise allowed under Section 404 of this Act | ||||||
24 | for any tax year beginning after the effective | ||||||
25 | date of this amendment provided such adjustment is | ||||||
26 | made pursuant to regulation adopted by the |
| |||||||
| |||||||
1 | Department and such regulations provide methods | ||||||
2 | and standards by which the Department will utilize | ||||||
3 | its authority under Section 404 of this Act; | ||||||
4 | (G-14) For taxable years ending on or after | ||||||
5 | December 31, 2008, an amount equal to the amount of | ||||||
6 | insurance premium expenses and costs otherwise allowed | ||||||
7 | as a deduction in computing base income, and that were | ||||||
8 | paid, accrued, or incurred, directly or indirectly, to | ||||||
9 | a person who would be a member of the same unitary | ||||||
10 | business group but for the fact that the person is | ||||||
11 | prohibited under Section 1501(a)(27) from being | ||||||
12 | included in the unitary business group because he or | ||||||
13 | she is ordinarily required to apportion business | ||||||
14 | income under different subsections of Section 304. The | ||||||
15 | addition modification required by this subparagraph | ||||||
16 | shall be reduced to the extent that dividends were | ||||||
17 | included in base income of the unitary group for the | ||||||
18 | same taxable year and received by the taxpayer or by a | ||||||
19 | member of the taxpayer's unitary business group | ||||||
20 | (including amounts included in gross income under | ||||||
21 | Sections 951 through 964 of the Internal Revenue Code | ||||||
22 | and amounts included in gross income under Section 78 | ||||||
23 | of the Internal Revenue Code) with respect to the | ||||||
24 | stock of the same person to whom the premiums and costs | ||||||
25 | were directly or indirectly paid, incurred, or | ||||||
26 | accrued. The preceding sentence does not apply to the |
| |||||||
| |||||||
1 | extent that the same dividends caused a reduction to | ||||||
2 | the addition modification required under Section | ||||||
3 | 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this | ||||||
4 | Act; | ||||||
5 | (G-15) An amount equal to the credit allowable to | ||||||
6 | the taxpayer under Section 218(a) of this Act, | ||||||
7 | determined without regard to Section 218(c) of this | ||||||
8 | Act; | ||||||
9 | (G-16) For taxable years ending on or after | ||||||
10 | December 31, 2017, an amount equal to the deduction | ||||||
11 | allowed under Section 199 of the Internal Revenue Code | ||||||
12 | for the taxable year; | ||||||
13 | and by deducting from the total so obtained the sum of the | ||||||
14 | following amounts: | ||||||
15 | (H) An amount equal to all amounts included in | ||||||
16 | such total pursuant to the provisions of Sections | ||||||
17 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408 | ||||||
18 | of the Internal Revenue Code or included in such total | ||||||
19 | as distributions under the provisions of any | ||||||
20 | retirement or disability plan for employees of any | ||||||
21 | governmental agency or unit, or retirement payments to | ||||||
22 | retired partners, which payments are excluded in | ||||||
23 | computing net earnings from self employment by Section | ||||||
24 | 1402 of the Internal Revenue Code and regulations | ||||||
25 | adopted pursuant thereto; | ||||||
26 | (I) The valuation limitation amount; |
| |||||||
| |||||||
1 | (J) An amount equal to the amount of any tax | ||||||
2 | imposed by this Act which was refunded to the taxpayer | ||||||
3 | and included in such total for the taxable year; | ||||||
4 | (K) An amount equal to all amounts included in | ||||||
5 | taxable income as modified by subparagraphs (A), (B), | ||||||
6 | (C), (D), (E), (F) and (G) which are exempt from | ||||||
7 | taxation by this State either by reason of its | ||||||
8 | statutes or Constitution or by reason of the | ||||||
9 | Constitution, treaties or statutes of the United | ||||||
10 | States; provided that, in the case of any statute of | ||||||
11 | this State that exempts income derived from bonds or | ||||||
12 | other obligations from the tax imposed under this Act, | ||||||
13 | the amount exempted shall be the interest net of bond | ||||||
14 | premium amortization; | ||||||
15 | (L) With the exception of any amounts subtracted | ||||||
16 | under subparagraph (K), an amount equal to the sum of | ||||||
17 | all amounts disallowed as deductions by (i) Sections | ||||||
18 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
19 | and all amounts of expenses allocable to interest and | ||||||
20 | disallowed as deductions by Section 265(a)(1) of the | ||||||
21 | Internal Revenue Code; and (ii) for taxable years | ||||||
22 | ending on or after August 13, 1999, Sections | ||||||
23 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
24 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
25 | ending on or after December 31, 2011, Section | ||||||
26 | 45G(e)(3) of the Internal Revenue Code and, for |
| |||||||
| |||||||
1 | taxable years ending on or after December 31, 2008, | ||||||
2 | any amount included in gross income under Section 87 | ||||||
3 | of the Internal Revenue Code; the provisions of this | ||||||
4 | subparagraph are exempt from the provisions of Section | ||||||
5 | 250; | ||||||
6 | (M) An amount equal to those dividends included in | ||||||
7 | such total which were paid by a corporation which | ||||||
8 | conducts business operations in a River Edge | ||||||
9 | Redevelopment Zone or zones created under the River | ||||||
10 | Edge Redevelopment Zone Act and conducts substantially | ||||||
11 | all of its operations in a River Edge Redevelopment | ||||||
12 | Zone or zones. This subparagraph (M) is exempt from | ||||||
13 | the provisions of Section 250; | ||||||
14 | (N) An amount equal to any contribution made to a | ||||||
15 | job training project established pursuant to the Tax | ||||||
16 | Increment Allocation Redevelopment Act; | ||||||
17 | (O) An amount equal to those dividends included in | ||||||
18 | such total that were paid by a corporation that | ||||||
19 | conducts business operations in a federally designated | ||||||
20 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
21 | a High Impact Business located in Illinois; provided | ||||||
22 | that dividends eligible for the deduction provided in | ||||||
23 | subparagraph (M) of paragraph (2) of this subsection | ||||||
24 | shall not be eligible for the deduction provided under | ||||||
25 | this subparagraph (O); | ||||||
26 | (P) An amount equal to the amount of the deduction |
| |||||||
| |||||||
1 | used to compute the federal income tax credit for | ||||||
2 | restoration of substantial amounts held under claim of | ||||||
3 | right for the taxable year pursuant to Section 1341 of | ||||||
4 | the Internal Revenue Code; | ||||||
5 | (Q) For taxable year 1999 and thereafter, an | ||||||
6 | amount equal to the amount of any (i) distributions, | ||||||
7 | to the extent includible in gross income for federal | ||||||
8 | income tax purposes, made to the taxpayer because of | ||||||
9 | his or her status as a victim of persecution for racial | ||||||
10 | or religious reasons by Nazi Germany or any other Axis | ||||||
11 | regime or as an heir of the victim and (ii) items of | ||||||
12 | income, to the extent includible in gross income for | ||||||
13 | federal income tax purposes, attributable to, derived | ||||||
14 | from or in any way related to assets stolen from, | ||||||
15 | hidden from, or otherwise lost to a victim of | ||||||
16 | persecution for racial or religious reasons by Nazi | ||||||
17 | Germany or any other Axis regime immediately prior to, | ||||||
18 | during, and immediately after World War II, including, | ||||||
19 | but not limited to, interest on the proceeds | ||||||
20 | receivable as insurance under policies issued to a | ||||||
21 | victim of persecution for racial or religious reasons | ||||||
22 | by Nazi Germany or any other Axis regime by European | ||||||
23 | insurance companies immediately prior to and during | ||||||
24 | World War II; provided, however, this subtraction from | ||||||
25 | federal adjusted gross income does not apply to assets | ||||||
26 | acquired with such assets or with the proceeds from |
| |||||||
| |||||||
1 | the sale of such assets; provided, further, this | ||||||
2 | paragraph shall only apply to a taxpayer who was the | ||||||
3 | first recipient of such assets after their recovery | ||||||
4 | and who is a victim of persecution for racial or | ||||||
5 | religious reasons by Nazi Germany or any other Axis | ||||||
6 | regime or as an heir of the victim. The amount of and | ||||||
7 | the eligibility for any public assistance, benefit, or | ||||||
8 | similar entitlement is not affected by the inclusion | ||||||
9 | of items (i) and (ii) of this paragraph in gross income | ||||||
10 | for federal income tax purposes. This paragraph is | ||||||
11 | exempt from the provisions of Section 250; | ||||||
12 | (R) For taxable years 2001 and thereafter, for the | ||||||
13 | taxable year in which the bonus depreciation deduction | ||||||
14 | is taken on the taxpayer's federal income tax return | ||||||
15 | under subsection (k) of Section 168 of the Internal | ||||||
16 | Revenue Code and for each applicable taxable year | ||||||
17 | thereafter, an amount equal to "x", where: | ||||||
18 | (1) "y" equals the amount of the depreciation | ||||||
19 | deduction taken for the taxable year on the | ||||||
20 | taxpayer's federal income tax return on property | ||||||
21 | for which the bonus depreciation deduction was | ||||||
22 | taken in any year under subsection (k) of Section | ||||||
23 | 168 of the Internal Revenue Code, but not | ||||||
24 | including the bonus depreciation deduction; | ||||||
25 | (2) for taxable years ending on or before | ||||||
26 | December 31, 2005, "x" equals "y" multiplied by 30 |
| |||||||
| |||||||
1 | and then divided by 70 (or "y" multiplied by | ||||||
2 | 0.429); and | ||||||
3 | (3) for taxable years ending after December | ||||||
4 | 31, 2005: | ||||||
5 | (i) for property on which a bonus | ||||||
6 | depreciation deduction of 30% of the adjusted | ||||||
7 | basis was taken, "x" equals "y" multiplied by | ||||||
8 | 30 and then divided by 70 (or "y" multiplied | ||||||
9 | by 0.429); | ||||||
10 | (ii) for property on which a bonus | ||||||
11 | depreciation deduction of 50% of the adjusted | ||||||
12 | basis was taken, "x" equals "y" multiplied by | ||||||
13 | 1.0; | ||||||
14 | (iii) for property on which a bonus | ||||||
15 | depreciation deduction of 100% of the adjusted | ||||||
16 | basis was taken in a taxable year ending on or | ||||||
17 | after December 31, 2021, "x" equals the | ||||||
18 | depreciation deduction that would be allowed | ||||||
19 | on that property if the taxpayer had made the | ||||||
20 | election under Section 168(k)(7) of the | ||||||
21 | Internal Revenue Code to not claim bonus | ||||||
22 | depreciation on that property; and | ||||||
23 | (iv) for property on which a bonus | ||||||
24 | depreciation deduction of a percentage other | ||||||
25 | than 30%, 50% or 100% of the adjusted basis | ||||||
26 | was taken in a taxable year ending on or after |
| |||||||
| |||||||
1 | December 31, 2021, "x" equals "y" multiplied | ||||||
2 | by 100 times the percentage bonus depreciation | ||||||
3 | on the property (that is, 100(bonus%)) and | ||||||
4 | then divided by 100 times 1 minus the | ||||||
5 | percentage bonus depreciation on the property | ||||||
6 | (that is, 100(1-bonus%)). | ||||||
7 | The aggregate amount deducted under this | ||||||
8 | subparagraph in all taxable years for any one piece of | ||||||
9 | property may not exceed the amount of the bonus | ||||||
10 | depreciation deduction taken on that property on the | ||||||
11 | taxpayer's federal income tax return under subsection | ||||||
12 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
13 | subparagraph (R) is exempt from the provisions of | ||||||
14 | Section 250; | ||||||
15 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
16 | otherwise disposes of property for which the taxpayer | ||||||
17 | was required in any taxable year to make an addition | ||||||
18 | modification under subparagraph (G-10), then an amount | ||||||
19 | equal to that addition modification. | ||||||
20 | If the taxpayer continues to own property through | ||||||
21 | the last day of the last tax year for which a | ||||||
22 | subtraction is allowed with respect to that property | ||||||
23 | under subparagraph (R) and for which the taxpayer was | ||||||
24 | required in any taxable year to make an addition | ||||||
25 | modification under subparagraph (G-10), then an amount | ||||||
26 | equal to that addition modification. |
| |||||||
| |||||||
1 | The taxpayer is allowed to take the deduction | ||||||
2 | under this subparagraph only once with respect to any | ||||||
3 | one piece of property. | ||||||
4 | This subparagraph (S) is exempt from the | ||||||
5 | provisions of Section 250; | ||||||
6 | (T) The amount of (i) any interest income (net of | ||||||
7 | the deductions allocable thereto) taken into account | ||||||
8 | for the taxable year with respect to a transaction | ||||||
9 | with a taxpayer that is required to make an addition | ||||||
10 | modification with respect to such transaction under | ||||||
11 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
12 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
13 | the amount of such addition modification and (ii) any | ||||||
14 | income from intangible property (net of the deductions | ||||||
15 | allocable thereto) taken into account for the taxable | ||||||
16 | year with respect to a transaction with a taxpayer | ||||||
17 | that is required to make an addition modification with | ||||||
18 | respect to such transaction under Section | ||||||
19 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
20 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
21 | addition modification. This subparagraph (T) is exempt | ||||||
22 | from the provisions of Section 250; | ||||||
23 | (U) An amount equal to the interest income taken | ||||||
24 | into account for the taxable year (net of the | ||||||
25 | deductions allocable thereto) with respect to | ||||||
26 | transactions with (i) a foreign person who would be a |
| |||||||
| |||||||
1 | member of the taxpayer's unitary business group but | ||||||
2 | for the fact the foreign person's business activity | ||||||
3 | outside the United States is 80% or more of that | ||||||
4 | person's total business activity and (ii) for taxable | ||||||
5 | years ending on or after December 31, 2008, to a person | ||||||
6 | who would be a member of the same unitary business | ||||||
7 | group but for the fact that the person is prohibited | ||||||
8 | under Section 1501(a)(27) from being included in the | ||||||
9 | unitary business group because he or she is ordinarily | ||||||
10 | required to apportion business income under different | ||||||
11 | subsections of Section 304, but not to exceed the | ||||||
12 | addition modification required to be made for the same | ||||||
13 | taxable year under Section 203(c)(2)(G-12) for | ||||||
14 | interest paid, accrued, or incurred, directly or | ||||||
15 | indirectly, to the same person. This subparagraph (U) | ||||||
16 | is exempt from the provisions of Section 250; | ||||||
17 | (V) An amount equal to the income from intangible | ||||||
18 | property taken into account for the taxable year (net | ||||||
19 | of the 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 | ||||||
22 | for the fact that the foreign person's business | ||||||
23 | activity outside the United States is 80% or more of | ||||||
24 | that person's total business activity and (ii) for | ||||||
25 | taxable years ending on or after December 31, 2008, to | ||||||
26 | a person who would be a member of the same unitary |
| |||||||
| |||||||
1 | business group but for the fact that the person is | ||||||
2 | prohibited under Section 1501(a)(27) from being | ||||||
3 | included in the unitary business group because he or | ||||||
4 | she is ordinarily required to apportion business | ||||||
5 | income under different subsections of Section 304, but | ||||||
6 | not to exceed the addition modification required to be | ||||||
7 | made for the same taxable year under Section | ||||||
8 | 203(c)(2)(G-13) for intangible expenses and costs | ||||||
9 | paid, accrued, or incurred, directly or indirectly, to | ||||||
10 | the same foreign person. This subparagraph (V) is | ||||||
11 | exempt from the provisions of Section 250; | ||||||
12 | (W) in the case of an estate, an amount equal to | ||||||
13 | all amounts included in such total pursuant to the | ||||||
14 | provisions of Section 111 of the Internal Revenue Code | ||||||
15 | as a recovery of items previously deducted by the | ||||||
16 | decedent from adjusted gross income in the computation | ||||||
17 | of taxable income. This subparagraph (W) is exempt | ||||||
18 | from Section 250; | ||||||
19 | (X) an amount equal to the refund included in such | ||||||
20 | total of any tax deducted for federal income tax | ||||||
21 | purposes, to the extent that deduction was added back | ||||||
22 | under subparagraph (F). This subparagraph (X) is | ||||||
23 | exempt from the provisions of Section 250; | ||||||
24 | (Y) For taxable years ending on or after December | ||||||
25 | 31, 2011, in the case of a taxpayer who was required to | ||||||
26 | add back any insurance premiums under Section |
| |||||||
| |||||||
1 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
2 | that part of a reimbursement received from the | ||||||
3 | insurance company equal to the amount of the expense | ||||||
4 | or loss (including expenses incurred by the insurance | ||||||
5 | company) that would have been taken into account as a | ||||||
6 | deduction for federal income tax purposes if the | ||||||
7 | expense or loss had been uninsured. If a taxpayer | ||||||
8 | makes the election provided for by this subparagraph | ||||||
9 | (Y), the insurer to which the premiums were paid must | ||||||
10 | add back to income the amount subtracted by the | ||||||
11 | taxpayer pursuant to this subparagraph (Y). This | ||||||
12 | subparagraph (Y) is exempt from the provisions of | ||||||
13 | Section 250; | ||||||
14 | (Z) For taxable years beginning after December 31, | ||||||
15 | 2018 and before January 1, 2026, the amount of excess | ||||||
16 | business loss of the taxpayer disallowed as a | ||||||
17 | deduction by Section 461(l)(1)(B) of the Internal | ||||||
18 | Revenue Code; and | ||||||
19 | (AA) For taxable years beginning on or after | ||||||
20 | January 1, 2023, for any cannabis establishment | ||||||
21 | operating in this State and licensed under the | ||||||
22 | Cannabis Regulation and Tax Act or any cannabis | ||||||
23 | cultivation center or medical cannabis dispensing | ||||||
24 | organization operating in this State and licensed | ||||||
25 | under the Compassionate Use of Medical Cannabis | ||||||
26 | Program Act, an amount equal to the deductions that |
| |||||||
| |||||||
1 | were disallowed under Section 280E of the Internal | ||||||
2 | Revenue Code for the taxable year and that would not be | ||||||
3 | added back under this subsection. The provisions of | ||||||
4 | this subparagraph (AA) are exempt from the provisions | ||||||
5 | of Section 250. | ||||||
6 | (3) Limitation. The amount of any modification | ||||||
7 | otherwise required under this subsection shall, under | ||||||
8 | regulations prescribed by the Department, be adjusted by | ||||||
9 | any amounts included therein which were properly paid, | ||||||
10 | credited, or required to be distributed, or permanently | ||||||
11 | set aside for charitable purposes pursuant to Internal | ||||||
12 | Revenue Code Section 642(c) during the taxable year. | ||||||
13 | (d) Partnerships. | ||||||
14 | (1) In general. In the case of a partnership, base | ||||||
15 | income means an amount equal to the taxpayer's taxable | ||||||
16 | income for the taxable year as modified by paragraph (2). | ||||||
17 | (2) Modifications. The taxable income referred to in | ||||||
18 | paragraph (1) shall be modified by adding thereto the sum | ||||||
19 | of the following amounts: | ||||||
20 | (A) An amount equal to all amounts paid or accrued | ||||||
21 | to the taxpayer as interest or dividends during the | ||||||
22 | taxable year to the extent excluded from gross income | ||||||
23 | in the computation of taxable income; | ||||||
24 | (B) An amount equal to the amount of tax imposed by | ||||||
25 | this Act to the extent deducted from gross income for |
| |||||||
| |||||||
1 | the taxable year; | ||||||
2 | (C) The amount of deductions allowed to the | ||||||
3 | partnership pursuant to Section 707 (c) of the | ||||||
4 | Internal Revenue Code in calculating its taxable | ||||||
5 | income; | ||||||
6 | (D) An amount equal to the amount of the capital | ||||||
7 | gain deduction allowable under the Internal Revenue | ||||||
8 | Code, to the extent deducted from gross income in the | ||||||
9 | computation of taxable income; | ||||||
10 | (D-5) For taxable years 2001 and thereafter, an | ||||||
11 | amount equal to the bonus depreciation deduction taken | ||||||
12 | on the taxpayer's federal income tax return for the | ||||||
13 | taxable year under subsection (k) of Section 168 of | ||||||
14 | the Internal Revenue Code; | ||||||
15 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
16 | or otherwise disposes of property for which the | ||||||
17 | taxpayer was required in any taxable year to make an | ||||||
18 | addition modification under subparagraph (D-5), then | ||||||
19 | an amount equal to the aggregate amount of the | ||||||
20 | deductions taken in all taxable years under | ||||||
21 | subparagraph (O) with respect to that property. | ||||||
22 | If the taxpayer continues to own property through | ||||||
23 | the last day of the last tax year for which a | ||||||
24 | subtraction is allowed with respect to that property | ||||||
25 | under subparagraph (O) and for which the taxpayer was | ||||||
26 | allowed in any taxable year to make a subtraction |
| |||||||
| |||||||
1 | modification under subparagraph (O), then an amount | ||||||
2 | equal to that subtraction modification. | ||||||
3 | The taxpayer is required to make the addition | ||||||
4 | modification under this subparagraph only once with | ||||||
5 | respect to any one piece of property; | ||||||
6 | (D-7) An amount equal to the amount otherwise | ||||||
7 | allowed as a deduction in computing base income for | ||||||
8 | interest paid, accrued, or incurred, directly or | ||||||
9 | indirectly, (i) for taxable years ending on or after | ||||||
10 | December 31, 2004, to a foreign person who would be a | ||||||
11 | member of the same unitary business group but for the | ||||||
12 | fact the foreign person's business activity outside | ||||||
13 | the United States is 80% or more of the foreign | ||||||
14 | person's total business activity and (ii) for taxable | ||||||
15 | years ending on or after December 31, 2008, to a person | ||||||
16 | who would be a member of the same unitary business | ||||||
17 | group but for the fact that the person is prohibited | ||||||
18 | under Section 1501(a)(27) from being included in the | ||||||
19 | unitary business group because he or she is ordinarily | ||||||
20 | required to apportion business income under different | ||||||
21 | subsections of Section 304. The addition modification | ||||||
22 | required by this subparagraph shall be reduced to the | ||||||
23 | extent that dividends were included in base income of | ||||||
24 | the unitary group for the same taxable year and | ||||||
25 | received by the taxpayer or by a member of the | ||||||
26 | taxpayer's unitary business group (including amounts |
| |||||||
| |||||||
1 | included in gross income pursuant to Sections 951 | ||||||
2 | through 964 of the Internal Revenue Code and amounts | ||||||
3 | included in gross income under Section 78 of the | ||||||
4 | Internal Revenue Code) with respect to the stock of | ||||||
5 | the same person to whom the interest was paid, | ||||||
6 | 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 |
| |||||||
| |||||||
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 | ||||||
6 | or agreement entered into at arm's-length rates | ||||||
7 | and terms and the principal purpose for the | ||||||
8 | payment is not federal or Illinois tax avoidance; | ||||||
9 | or | ||||||
10 | (iv) an item of interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to a person if | ||||||
12 | the taxpayer establishes by clear and convincing | ||||||
13 | evidence that the adjustments are unreasonable; or | ||||||
14 | if the taxpayer and the Director agree in writing | ||||||
15 | to the application or use of an alternative method | ||||||
16 | of apportionment under Section 304(f). | ||||||
17 | Nothing in this subsection shall preclude the | ||||||
18 | Director from making any other adjustment | ||||||
19 | otherwise allowed under Section 404 of this Act | ||||||
20 | for any tax year beginning after the effective | ||||||
21 | date of this amendment provided such adjustment is | ||||||
22 | made pursuant to regulation adopted by the | ||||||
23 | Department and such regulations provide methods | ||||||
24 | and standards by which the Department will utilize | ||||||
25 | its authority under Section 404 of this Act; and | ||||||
26 | (D-8) An amount equal to the amount of intangible |
| |||||||
| |||||||
1 | expenses and costs otherwise allowed as a deduction in | ||||||
2 | computing base income, and that were paid, accrued, or | ||||||
3 | incurred, directly or indirectly, (i) for taxable | ||||||
4 | years ending on or after December 31, 2004, to a | ||||||
5 | foreign person who would be a member of the same | ||||||
6 | unitary business group but for the fact that the | ||||||
7 | foreign person's business activity outside the United | ||||||
8 | States is 80% or more of that person's total business | ||||||
9 | activity and (ii) for taxable years ending on or after | ||||||
10 | December 31, 2008, to a person who would be a member of | ||||||
11 | the same unitary business group but for the fact that | ||||||
12 | the person is prohibited under Section 1501(a)(27) | ||||||
13 | from being included in the unitary business group | ||||||
14 | because he or she is ordinarily required to apportion | ||||||
15 | business income under different subsections of Section | ||||||
16 | 304. The addition modification required by this | ||||||
17 | subparagraph shall be reduced to the extent that | ||||||
18 | dividends were included in base income of the unitary | ||||||
19 | group for the same taxable year and received by the | ||||||
20 | taxpayer or by a member of the taxpayer's unitary | ||||||
21 | business group (including amounts included in gross | ||||||
22 | income pursuant to Sections 951 through 964 of the | ||||||
23 | Internal Revenue Code and amounts included in gross | ||||||
24 | income under Section 78 of the Internal Revenue Code) | ||||||
25 | with respect to the stock of the same person to whom | ||||||
26 | the intangible expenses and costs were directly or |
| |||||||
| |||||||
1 | indirectly paid, incurred or accrued. The preceding | ||||||
2 | sentence shall not apply to the extent that the same | ||||||
3 | dividends caused a reduction to the addition | ||||||
4 | modification required under Section 203(d)(2)(D-7) of | ||||||
5 | this Act. As used in this subparagraph, the term | ||||||
6 | "intangible expenses and costs" includes (1) expenses, | ||||||
7 | losses, and costs for, or related to, the direct or | ||||||
8 | indirect acquisition, use, maintenance or management, | ||||||
9 | ownership, sale, exchange, or any other disposition of | ||||||
10 | intangible property; (2) losses incurred, directly or | ||||||
11 | indirectly, from factoring transactions or discounting | ||||||
12 | transactions; (3) royalty, patent, technical, and | ||||||
13 | copyright fees; (4) licensing fees; and (5) other | ||||||
14 | similar expenses and costs. For purposes of this | ||||||
15 | subparagraph, "intangible property" includes patents, | ||||||
16 | patent applications, trade names, trademarks, service | ||||||
17 | marks, copyrights, mask works, trade secrets, and | ||||||
18 | similar types of intangible assets; | ||||||
19 | This paragraph shall not apply to the following: | ||||||
20 | (i) any item of intangible expenses or costs | ||||||
21 | paid, accrued, or incurred, directly or | ||||||
22 | indirectly, from a transaction with a person who | ||||||
23 | is subject in a foreign country or state, other | ||||||
24 | than a state which requires mandatory unitary | ||||||
25 | reporting, to a tax on or measured by net income | ||||||
26 | with respect to such item; or |
| |||||||
| |||||||
1 | (ii) any item of intangible expense or cost | ||||||
2 | paid, accrued, or incurred, directly or | ||||||
3 | indirectly, if the taxpayer can establish, based | ||||||
4 | on a preponderance of the evidence, both of the | ||||||
5 | following: | ||||||
6 | (a) the person during the same taxable | ||||||
7 | year paid, accrued, or incurred, the | ||||||
8 | intangible expense or cost to a person that is | ||||||
9 | not a related member, and | ||||||
10 | (b) the transaction giving rise to the | ||||||
11 | intangible expense or cost between the | ||||||
12 | taxpayer and the person did not have as a | ||||||
13 | principal purpose the avoidance of Illinois | ||||||
14 | income tax, and is paid pursuant to a contract | ||||||
15 | or agreement that reflects arm's-length terms; | ||||||
16 | or | ||||||
17 | (iii) any item of intangible expense or cost | ||||||
18 | paid, accrued, or incurred, directly or | ||||||
19 | indirectly, from a transaction with a person if | ||||||
20 | the taxpayer establishes by clear and convincing | ||||||
21 | evidence, that the adjustments are unreasonable; | ||||||
22 | or if the taxpayer and the Director agree in | ||||||
23 | writing to the application or use of an | ||||||
24 | alternative method of apportionment under Section | ||||||
25 | 304(f); | ||||||
26 | Nothing in this subsection shall preclude the |
| |||||||
| |||||||
1 | Director from making any other adjustment | ||||||
2 | otherwise allowed under Section 404 of this Act | ||||||
3 | for any tax year beginning after the effective | ||||||
4 | date of this amendment provided such adjustment is | ||||||
5 | made pursuant to regulation adopted by the | ||||||
6 | Department and such regulations provide methods | ||||||
7 | and standards by which the Department will utilize | ||||||
8 | its authority under Section 404 of this Act; | ||||||
9 | (D-9) For taxable years ending on or after | ||||||
10 | December 31, 2008, an amount equal to the amount of | ||||||
11 | insurance premium expenses and costs otherwise allowed | ||||||
12 | as a deduction in computing base income, and that were | ||||||
13 | paid, accrued, or incurred, directly or indirectly, to | ||||||
14 | a person who would be a member of the same unitary | ||||||
15 | business group but for the fact that the person is | ||||||
16 | prohibited under Section 1501(a)(27) from being | ||||||
17 | included in the unitary business group because he or | ||||||
18 | she is ordinarily required to apportion business | ||||||
19 | income under different subsections of Section 304. The | ||||||
20 | addition modification required by this subparagraph | ||||||
21 | shall be reduced to the extent that dividends were | ||||||
22 | included in base income of the unitary group for the | ||||||
23 | same taxable year and received by the taxpayer or by a | ||||||
24 | member of the taxpayer's unitary business group | ||||||
25 | (including amounts included in gross income under | ||||||
26 | Sections 951 through 964 of the Internal Revenue Code |
| |||||||
| |||||||
1 | and amounts included in gross income under Section 78 | ||||||
2 | of the Internal Revenue Code) with respect to the | ||||||
3 | stock of the same person to whom the premiums and costs | ||||||
4 | were directly or indirectly paid, incurred, or | ||||||
5 | accrued. The preceding sentence does not apply to the | ||||||
6 | extent that the same dividends caused a reduction to | ||||||
7 | the addition modification required under Section | ||||||
8 | 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act; | ||||||
9 | (D-10) An amount equal to the credit allowable to | ||||||
10 | the taxpayer under Section 218(a) of this Act, | ||||||
11 | determined without regard to Section 218(c) of this | ||||||
12 | Act; | ||||||
13 | (D-11) For taxable years ending on or after | ||||||
14 | December 31, 2017, an amount equal to the deduction | ||||||
15 | allowed under Section 199 of the Internal Revenue Code | ||||||
16 | for the taxable year; | ||||||
17 | and by deducting from the total so obtained the following | ||||||
18 | amounts: | ||||||
19 | (E) The valuation limitation amount; | ||||||
20 | (F) An amount equal to the amount of any tax | ||||||
21 | imposed by this Act which was refunded to the taxpayer | ||||||
22 | and included in such total for the taxable year; | ||||||
23 | (G) An amount equal to all amounts included in | ||||||
24 | taxable income as modified by subparagraphs (A), (B), | ||||||
25 | (C) and (D) which are exempt from taxation by this | ||||||
26 | State either by reason of its statutes or Constitution |
| |||||||
| |||||||
1 | or by reason of the Constitution, treaties or statutes | ||||||
2 | of the 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 | ||||||
6 | net of bond premium amortization; | ||||||
7 | (H) Any income of the partnership which | ||||||
8 | constitutes personal service income as defined in | ||||||
9 | Section 1348(b)(1) of the Internal Revenue Code (as in | ||||||
10 | effect December 31, 1981) or a reasonable allowance | ||||||
11 | for compensation paid or accrued for services rendered | ||||||
12 | by partners to the partnership, whichever is greater; | ||||||
13 | this subparagraph (H) is exempt from the provisions of | ||||||
14 | Section 250; | ||||||
15 | (I) An amount equal to all amounts of income | ||||||
16 | distributable to an entity subject to the Personal | ||||||
17 | Property Tax Replacement Income Tax imposed by | ||||||
18 | subsections (c) and (d) of Section 201 of this Act | ||||||
19 | including amounts distributable to organizations | ||||||
20 | exempt from federal income tax by reason of Section | ||||||
21 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
22 | (I) is exempt from the provisions of Section 250; | ||||||
23 | (J) With the exception of any amounts subtracted | ||||||
24 | under subparagraph (G), an amount equal to the sum of | ||||||
25 | all amounts disallowed as deductions by (i) Sections | ||||||
26 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, |
| |||||||
| |||||||
1 | and all amounts of expenses allocable to interest and | ||||||
2 | disallowed as deductions by Section 265(a)(1) of the | ||||||
3 | Internal Revenue Code; and (ii) for taxable years | ||||||
4 | ending on or after August 13, 1999, Sections | ||||||
5 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
6 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
7 | ending on or after December 31, 2011, Section | ||||||
8 | 45G(e)(3) of the Internal Revenue Code and, for | ||||||
9 | taxable years ending on or after December 31, 2008, | ||||||
10 | any amount included in gross income under Section 87 | ||||||
11 | of the Internal Revenue Code; the provisions of this | ||||||
12 | subparagraph are exempt from the provisions of Section | ||||||
13 | 250; | ||||||
14 | (K) An amount equal to those dividends included in | ||||||
15 | such total which were paid by a corporation which | ||||||
16 | conducts business operations in a River Edge | ||||||
17 | Redevelopment Zone or zones created under the River | ||||||
18 | Edge Redevelopment Zone Act and conducts substantially | ||||||
19 | all of its operations from a River Edge Redevelopment | ||||||
20 | Zone or zones. This subparagraph (K) is exempt from | ||||||
21 | the provisions of Section 250; | ||||||
22 | (L) An amount equal to any contribution made to a | ||||||
23 | job training project established pursuant to the Real | ||||||
24 | Property Tax Increment Allocation Redevelopment Act; | ||||||
25 | (M) An amount equal to those dividends included in | ||||||
26 | such total that were paid by a corporation that |
| |||||||
| |||||||
1 | conducts business operations in a federally designated | ||||||
2 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
3 | a High Impact Business located in Illinois; provided | ||||||
4 | that dividends eligible for the deduction provided in | ||||||
5 | subparagraph (K) of paragraph (2) of this subsection | ||||||
6 | shall not be eligible for the deduction provided under | ||||||
7 | this subparagraph (M); | ||||||
8 | (N) An amount equal to the amount of the deduction | ||||||
9 | used to compute the federal income tax credit for | ||||||
10 | restoration of substantial amounts held under claim of | ||||||
11 | right for the taxable year pursuant to Section 1341 of | ||||||
12 | the Internal Revenue Code; | ||||||
13 | (O) For taxable years 2001 and thereafter, for the | ||||||
14 | taxable year in which the bonus depreciation deduction | ||||||
15 | is taken on the taxpayer's federal income tax return | ||||||
16 | under subsection (k) of Section 168 of the Internal | ||||||
17 | Revenue Code and for each applicable taxable year | ||||||
18 | thereafter, an amount equal to "x", where: | ||||||
19 | (1) "y" equals the amount of the depreciation | ||||||
20 | deduction taken for the taxable year on the | ||||||
21 | taxpayer's federal income tax return on property | ||||||
22 | for which the bonus depreciation deduction was | ||||||
23 | taken in any year under subsection (k) of Section | ||||||
24 | 168 of the Internal Revenue Code, but not | ||||||
25 | including the bonus depreciation deduction; | ||||||
26 | (2) for taxable years ending on or before |
| |||||||
| |||||||
1 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
2 | and then divided by 70 (or "y" multiplied by | ||||||
3 | 0.429); and | ||||||
4 | (3) for taxable years ending after December | ||||||
5 | 31, 2005: | ||||||
6 | (i) for property on which a bonus | ||||||
7 | depreciation deduction of 30% of the adjusted | ||||||
8 | basis was taken, "x" equals "y" multiplied by | ||||||
9 | 30 and then divided by 70 (or "y" multiplied | ||||||
10 | by 0.429); | ||||||
11 | (ii) for property on which a bonus | ||||||
12 | depreciation deduction of 50% of the adjusted | ||||||
13 | basis was taken, "x" equals "y" multiplied by | ||||||
14 | 1.0; | ||||||
15 | (iii) for property on which a bonus | ||||||
16 | depreciation deduction of 100% of the adjusted | ||||||
17 | basis was taken in a taxable year ending on or | ||||||
18 | after December 31, 2021, "x" equals the | ||||||
19 | depreciation deduction that would be allowed | ||||||
20 | on that property if the taxpayer had made the | ||||||
21 | election under Section 168(k)(7) of the | ||||||
22 | Internal Revenue Code to not claim bonus | ||||||
23 | depreciation on that property; and | ||||||
24 | (iv) for property on which a bonus | ||||||
25 | depreciation deduction of a percentage other | ||||||
26 | than 30%, 50% or 100% of the adjusted basis |
| |||||||
| |||||||
1 | was taken in a taxable year ending on or after | ||||||
2 | December 31, 2021, "x" equals "y" multiplied | ||||||
3 | by 100 times the percentage bonus depreciation | ||||||
4 | on the property (that is, 100(bonus%)) and | ||||||
5 | then divided by 100 times 1 minus the | ||||||
6 | percentage bonus depreciation on the property | ||||||
7 | (that is, 100(1-bonus%)). | ||||||
8 | The aggregate amount deducted under this | ||||||
9 | subparagraph in all taxable years for any one piece of | ||||||
10 | property may not exceed the amount of the bonus | ||||||
11 | depreciation deduction taken on that property on the | ||||||
12 | taxpayer's federal income tax return under subsection | ||||||
13 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
14 | subparagraph (O) is exempt from the provisions of | ||||||
15 | Section 250; | ||||||
16 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
17 | otherwise disposes of property for which the taxpayer | ||||||
18 | was required in any taxable year to make an addition | ||||||
19 | modification under subparagraph (D-5), then an amount | ||||||
20 | equal to that addition modification. | ||||||
21 | If the taxpayer continues to own property through | ||||||
22 | the last day of the last tax year for which a | ||||||
23 | subtraction is allowed with respect to that property | ||||||
24 | under subparagraph (O) and for which the taxpayer was | ||||||
25 | required in any taxable year to make an addition | ||||||
26 | modification under subparagraph (D-5), then an amount |
| |||||||
| |||||||
1 | equal to that addition modification. | ||||||
2 | The taxpayer is allowed to take the deduction | ||||||
3 | under this subparagraph only once with respect to any | ||||||
4 | one piece of property. | ||||||
5 | This subparagraph (P) is exempt from the | ||||||
6 | provisions of Section 250; | ||||||
7 | (Q) The amount of (i) any interest income (net of | ||||||
8 | the deductions allocable thereto) taken into account | ||||||
9 | for the taxable year with respect to a transaction | ||||||
10 | with a taxpayer that is required to make an addition | ||||||
11 | modification with respect to such transaction under | ||||||
12 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
13 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
14 | the amount of such addition modification and (ii) any | ||||||
15 | income from intangible property (net of the deductions | ||||||
16 | allocable thereto) taken into account for the taxable | ||||||
17 | year with respect to a transaction with a taxpayer | ||||||
18 | that is required to make an addition modification with | ||||||
19 | respect to such transaction under Section | ||||||
20 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
21 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
22 | addition modification. This subparagraph (Q) is exempt | ||||||
23 | from Section 250; | ||||||
24 | (R) An amount equal to the interest income taken | ||||||
25 | into account for the taxable year (net of the | ||||||
26 | deductions allocable thereto) with respect to |
| |||||||
| |||||||
1 | transactions with (i) a foreign person who would be a | ||||||
2 | member of the taxpayer's unitary business group but | ||||||
3 | for the fact that the foreign person's business | ||||||
4 | activity outside the United States is 80% or more of | ||||||
5 | that person's total business activity and (ii) for | ||||||
6 | taxable years ending on or after December 31, 2008, to | ||||||
7 | a person who would be a member of the same unitary | ||||||
8 | business group but for the fact that the person is | ||||||
9 | prohibited under Section 1501(a)(27) from being | ||||||
10 | included in the unitary business group because he or | ||||||
11 | she is ordinarily required to apportion business | ||||||
12 | income under different subsections of Section 304, but | ||||||
13 | not to exceed the addition modification required to be | ||||||
14 | made for the same taxable year under Section | ||||||
15 | 203(d)(2)(D-7) for interest paid, accrued, or | ||||||
16 | incurred, directly or indirectly, to the same person. | ||||||
17 | This subparagraph (R) is exempt from Section 250; | ||||||
18 | (S) An amount equal to the income from intangible | ||||||
19 | property taken into account for the taxable year (net | ||||||
20 | of the deductions allocable thereto) with respect to | ||||||
21 | transactions with (i) a foreign person who would be a | ||||||
22 | member of the taxpayer's unitary business group but | ||||||
23 | for the fact that the foreign person's business | ||||||
24 | activity outside the United States is 80% or more of | ||||||
25 | that person's total business activity and (ii) for | ||||||
26 | taxable years ending on or after December 31, 2008, to |
| |||||||
| |||||||
1 | a person who would be a member of the same unitary | ||||||
2 | business group but for the fact that the person is | ||||||
3 | prohibited under Section 1501(a)(27) from being | ||||||
4 | included in the unitary business group because he or | ||||||
5 | she is ordinarily required to apportion business | ||||||
6 | income under different subsections of Section 304, but | ||||||
7 | not to exceed the addition modification required to be | ||||||
8 | made for the same taxable year under Section | ||||||
9 | 203(d)(2)(D-8) for intangible expenses and costs paid, | ||||||
10 | accrued, or incurred, directly or indirectly, to the | ||||||
11 | same person. This subparagraph (S) is exempt from | ||||||
12 | Section 250; | ||||||
13 | (T) For taxable years ending on or after December | ||||||
14 | 31, 2011, in the case of a taxpayer who was required to | ||||||
15 | add back any insurance premiums under Section | ||||||
16 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
17 | that part of a reimbursement received from the | ||||||
18 | insurance company equal to the amount of the expense | ||||||
19 | or loss (including expenses incurred by the insurance | ||||||
20 | company) that would have been taken into account as a | ||||||
21 | deduction for federal income tax purposes if the | ||||||
22 | expense or loss had been uninsured. If a taxpayer | ||||||
23 | makes the election provided for by this subparagraph | ||||||
24 | (T), the insurer to which the premiums were paid must | ||||||
25 | add back to income the amount subtracted by the | ||||||
26 | taxpayer pursuant to this subparagraph (T). This |
| |||||||
| |||||||
1 | subparagraph (T) is exempt from the provisions of | ||||||
2 | Section 250; and | ||||||
3 | (U) For taxable years beginning on or after | ||||||
4 | January 1, 2023, for any cannabis establishment | ||||||
5 | operating in this State and licensed under the | ||||||
6 | Cannabis Regulation and Tax Act or any cannabis | ||||||
7 | cultivation center or medical cannabis dispensing | ||||||
8 | organization operating in this State and licensed | ||||||
9 | under the Compassionate Use of Medical Cannabis | ||||||
10 | Program Act, an amount equal to the deductions that | ||||||
11 | were disallowed under Section 280E of the Internal | ||||||
12 | Revenue Code for the taxable year and that would not be | ||||||
13 | added back under this subsection. The provisions of | ||||||
14 | this subparagraph (U) are exempt from the provisions | ||||||
15 | of Section 250. | ||||||
16 | (e) Gross income; adjusted gross income; taxable income. | ||||||
17 | (1) In general. Subject to the provisions of paragraph | ||||||
18 | (2) and subsection (b)(3), for purposes of this Section | ||||||
19 | and Section 803(e), a taxpayer's gross income, adjusted | ||||||
20 | gross income, or taxable income for the taxable year shall | ||||||
21 | mean the amount of gross income, adjusted gross income or | ||||||
22 | taxable income properly reportable for federal income tax | ||||||
23 | purposes for the taxable year under the provisions of the | ||||||
24 | Internal Revenue Code. Taxable income may be less than | ||||||
25 | zero. However, for taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 1986, net operating loss carryforwards from | ||||||
2 | taxable years ending prior to December 31, 1986, may not | ||||||
3 | exceed the sum of federal taxable income for the taxable | ||||||
4 | year before net operating loss deduction, plus the excess | ||||||
5 | of addition modifications over subtraction modifications | ||||||
6 | for the taxable year. For taxable years ending prior to | ||||||
7 | December 31, 1986, taxable income may never be an amount | ||||||
8 | in excess of the net operating loss for the taxable year as | ||||||
9 | defined in subsections (c) and (d) of Section 172 of the | ||||||
10 | Internal Revenue Code, provided that when taxable income | ||||||
11 | of a corporation (other than a Subchapter S corporation), | ||||||
12 | trust, or estate is less than zero and addition | ||||||
13 | modifications, other than those provided by subparagraph | ||||||
14 | (E) of paragraph (2) of subsection (b) for corporations or | ||||||
15 | subparagraph (E) of paragraph (2) of subsection (c) for | ||||||
16 | trusts and estates, exceed subtraction modifications, an | ||||||
17 | addition modification must be made under those | ||||||
18 | subparagraphs for any other taxable year to which the | ||||||
19 | taxable income less than zero (net operating loss) is | ||||||
20 | applied under Section 172 of the Internal Revenue Code or | ||||||
21 | under subparagraph (E) of paragraph (2) of this subsection | ||||||
22 | (e) applied in conjunction with Section 172 of the | ||||||
23 | Internal Revenue Code. | ||||||
24 | (2) Special rule. For purposes of paragraph (1) of | ||||||
25 | this subsection, the taxable income properly reportable | ||||||
26 | for federal income tax purposes shall mean: |
| |||||||
| |||||||
1 | (A) Certain life insurance companies. In the case | ||||||
2 | of a life insurance company subject to the tax imposed | ||||||
3 | by Section 801 of the Internal Revenue Code, life | ||||||
4 | insurance company taxable income, plus the amount of | ||||||
5 | distribution from pre-1984 policyholder surplus | ||||||
6 | accounts as calculated under Section 815a of the | ||||||
7 | Internal Revenue Code; | ||||||
8 | (B) Certain other insurance companies. In the case | ||||||
9 | of mutual insurance companies subject to the tax | ||||||
10 | imposed by Section 831 of the Internal Revenue Code, | ||||||
11 | insurance company taxable income; | ||||||
12 | (C) Regulated investment companies. In the case of | ||||||
13 | a regulated investment company subject to the tax | ||||||
14 | imposed by Section 852 of the Internal Revenue Code, | ||||||
15 | investment company taxable income; | ||||||
16 | (D) Real estate investment trusts. In the case of | ||||||
17 | a real estate investment trust subject to the tax | ||||||
18 | imposed by Section 857 of the Internal Revenue Code, | ||||||
19 | real estate investment trust taxable income; | ||||||
20 | (E) Consolidated corporations. In the case of a | ||||||
21 | corporation which is a member of an affiliated group | ||||||
22 | of corporations filing a consolidated income tax | ||||||
23 | return for the taxable year for federal income tax | ||||||
24 | purposes, taxable income determined as if such | ||||||
25 | corporation had filed a separate return for federal | ||||||
26 | income tax purposes for the taxable year and each |
| |||||||
| |||||||
1 | preceding taxable year for which it was a member of an | ||||||
2 | affiliated group. For purposes of this subparagraph, | ||||||
3 | the taxpayer's separate taxable income shall be | ||||||
4 | determined as if the election provided by Section | ||||||
5 | 243(b)(2) of the Internal Revenue Code had been in | ||||||
6 | effect for all such years; | ||||||
7 | (F) Cooperatives. In the case of a cooperative | ||||||
8 | corporation or association, the taxable income of such | ||||||
9 | organization determined in accordance with the | ||||||
10 | provisions of Section 1381 through 1388 of the | ||||||
11 | Internal Revenue Code, but without regard to the | ||||||
12 | prohibition against offsetting losses from patronage | ||||||
13 | activities against income from nonpatronage | ||||||
14 | activities; except that a cooperative corporation or | ||||||
15 | association may make an election to follow its federal | ||||||
16 | income tax treatment of patronage losses and | ||||||
17 | nonpatronage losses. In the event such election is | ||||||
18 | made, such losses shall be computed and carried over | ||||||
19 | in a manner consistent with subsection (a) of Section | ||||||
20 | 207 of this Act and apportioned by the apportionment | ||||||
21 | factor reported by the cooperative on its Illinois | ||||||
22 | income tax return filed for the taxable year in which | ||||||
23 | the losses are incurred. The election shall be | ||||||
24 | effective for all taxable years with original returns | ||||||
25 | due on or after the date of the election. In addition, | ||||||
26 | the cooperative may file an amended return or returns, |
| |||||||
| |||||||
1 | as allowed under this Act, to provide that the | ||||||
2 | election shall be effective for losses incurred or | ||||||
3 | carried forward for taxable years occurring prior to | ||||||
4 | the date of the election. Once made, the election may | ||||||
5 | only be revoked upon approval of the Director. The | ||||||
6 | Department shall adopt rules setting forth | ||||||
7 | requirements for documenting the elections and any | ||||||
8 | resulting Illinois net loss and the standards to be | ||||||
9 | used by the Director in evaluating requests to revoke | ||||||
10 | elections. Public Act 96-932 is declaratory of | ||||||
11 | existing law; | ||||||
12 | (G) Subchapter S corporations. In the case of: (i) | ||||||
13 | a Subchapter S corporation for which there is in | ||||||
14 | effect an election for the taxable year under Section | ||||||
15 | 1362 of the Internal Revenue Code, the taxable income | ||||||
16 | of such corporation determined in accordance with | ||||||
17 | Section 1363(b) of the Internal Revenue Code, except | ||||||
18 | that taxable income shall take into account those | ||||||
19 | items which are required by Section 1363(b)(1) of the | ||||||
20 | Internal Revenue Code to be separately stated; and | ||||||
21 | (ii) a Subchapter S corporation for which there is in | ||||||
22 | effect a federal election to opt out of the provisions | ||||||
23 | of the Subchapter S Revision Act of 1982 and have | ||||||
24 | applied instead the prior federal Subchapter S rules | ||||||
25 | as in effect on July 1, 1982, the taxable income of | ||||||
26 | such corporation determined in accordance with the |
| |||||||
| |||||||
1 | federal Subchapter S rules as in effect on July 1, | ||||||
2 | 1982; and | ||||||
3 | (H) Partnerships. In the case of a partnership, | ||||||
4 | taxable income determined in accordance with Section | ||||||
5 | 703 of the Internal Revenue Code, except that taxable | ||||||
6 | income shall take into account those items which are | ||||||
7 | required by Section 703(a)(1) to be separately stated | ||||||
8 | but which would be taken into account by an individual | ||||||
9 | in calculating his taxable income. | ||||||
10 | (3) Recapture of business expenses on disposition of | ||||||
11 | asset or business. Notwithstanding any other law to the | ||||||
12 | contrary, if in prior years income from an asset or | ||||||
13 | business has been classified as business income and in a | ||||||
14 | later year is demonstrated to be non-business income, then | ||||||
15 | all expenses, without limitation, deducted in such later | ||||||
16 | year and in the 2 immediately preceding taxable years | ||||||
17 | related to that asset or business that generated the | ||||||
18 | non-business income shall be added back and recaptured as | ||||||
19 | business income in the year of the disposition of the | ||||||
20 | asset or business. Such amount shall be apportioned to | ||||||
21 | Illinois using the greater of the apportionment fraction | ||||||
22 | computed for the business under Section 304 of this Act | ||||||
23 | for the taxable year or the average of the apportionment | ||||||
24 | fractions computed for the business under Section 304 of | ||||||
25 | this Act for the taxable year and for the 2 immediately | ||||||
26 | preceding taxable years. |
| |||||||
| |||||||
1 | (f) Valuation limitation amount. | ||||||
2 | (1) In general. The valuation limitation amount | ||||||
3 | referred to in subsections (a)(2)(G), (c)(2)(I) and | ||||||
4 | (d)(2)(E) is an amount equal to: | ||||||
5 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
6 | amounts (to the extent consisting of gain reportable | ||||||
7 | under the provisions of Section 1245 or 1250 of the | ||||||
8 | Internal Revenue Code) for all property in respect of | ||||||
9 | which such gain was reported for the taxable year; | ||||||
10 | plus | ||||||
11 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
12 | 1969 appreciation amounts (to the extent consisting of | ||||||
13 | capital gain) for all property in respect of which | ||||||
14 | such gain was reported for federal income tax purposes | ||||||
15 | for the taxable year, or (ii) the net capital gain for | ||||||
16 | the taxable year, reduced in either case by any amount | ||||||
17 | of such gain included in the amount determined under | ||||||
18 | subsection (a)(2)(F) or (c)(2)(H). | ||||||
19 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
20 | (A) If the fair market value of property referred | ||||||
21 | to in paragraph (1) was readily ascertainable on | ||||||
22 | August 1, 1969, the pre-August 1, 1969 appreciation | ||||||
23 | amount for such property is the lesser of (i) the | ||||||
24 | excess of such fair market value over the taxpayer's | ||||||
25 | basis (for determining gain) for such property on that |
| |||||||
| |||||||
1 | date (determined under the Internal Revenue Code as in | ||||||
2 | effect on that date), or (ii) the total gain realized | ||||||
3 | and reportable for federal income tax purposes in | ||||||
4 | respect of the sale, exchange or other disposition of | ||||||
5 | such property. | ||||||
6 | (B) If the fair market value of property referred | ||||||
7 | to in paragraph (1) was not readily ascertainable on | ||||||
8 | August 1, 1969, the pre-August 1, 1969 appreciation | ||||||
9 | amount for such property is that amount which bears | ||||||
10 | the same ratio to the total gain reported in respect of | ||||||
11 | the property for federal income tax purposes for the | ||||||
12 | taxable year, as the number of full calendar months in | ||||||
13 | that part of the taxpayer's holding period for the | ||||||
14 | property ending July 31, 1969 bears to the number of | ||||||
15 | full calendar months in the taxpayer's entire holding | ||||||
16 | period for the property. | ||||||
17 | (C) The Department shall prescribe such | ||||||
18 | regulations as may be necessary to carry out the | ||||||
19 | purposes of this paragraph. | ||||||
20 | (g) Double deductions. Unless specifically provided | ||||||
21 | otherwise, nothing in this Section shall permit the same item | ||||||
22 | to be deducted more than once. | ||||||
23 | (h) Legislative intention. Except as expressly provided by | ||||||
24 | this Section there shall be no modifications or limitations on |
| |||||||
| |||||||
1 | the amounts of income, gain, loss or deduction taken into | ||||||
2 | account in determining gross income, adjusted gross income or | ||||||
3 | taxable income for federal income tax purposes for the taxable | ||||||
4 | year, or in the amount of such items entering into the | ||||||
5 | computation of base income and net income under this Act for | ||||||
6 | such taxable year, whether in respect of property values as of | ||||||
7 | August 1, 1969 or otherwise. | ||||||
8 | (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; | ||||||
9 | 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. | ||||||
10 | 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised | ||||||
11 | 9-26-23.) | ||||||
12 | (35 ILCS 5/218) | ||||||
13 | (Text of Section before amendment by P.A. 103-396 ) | ||||||
14 | Sec. 218. Credit for student-assistance contributions. | ||||||
15 | (a) For taxable years ending on or after December 31, 2009 | ||||||
16 | and on or before December 31, 2024, each taxpayer who, during | ||||||
17 | the taxable year, makes a contribution (i) to a specified | ||||||
18 | individual College Savings Pool Account under Section 16.5 of | ||||||
19 | the State Treasurer Act or (ii) to the Illinois Prepaid | ||||||
20 | Tuition Trust Fund in an amount matching a contribution made | ||||||
21 | in the same taxable year by an employee of the taxpayer to that | ||||||
22 | Account or Fund is entitled to a credit against the tax imposed | ||||||
23 | under subsections (a) and (b) of Section 201 in an amount equal | ||||||
24 | to 25% of that matching contribution, but not to exceed $500 | ||||||
25 | per contributing employee per taxable year. |
| |||||||
| |||||||
1 | (b) For partners, shareholders of Subchapter S | ||||||
2 | corporations, and owners of limited liability companies, if | ||||||
3 | the liability company is treated as a partnership for purposes | ||||||
4 | of federal and State income taxation, there is allowed a | ||||||
5 | credit under this Section to be determined in accordance with | ||||||
6 | the determination of income and distributive share of income | ||||||
7 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
8 | Revenue Code. | ||||||
9 | (c) The credit may not be carried back. If the amount of | ||||||
10 | the credit exceeds the tax liability for the year, the excess | ||||||
11 | may be carried forward and applied to the tax liability of the | ||||||
12 | 5 taxable years following the excess credit year. The tax | ||||||
13 | credit shall be applied to the earliest year for which there is | ||||||
14 | a tax liability. If there are credits for more than one year | ||||||
15 | that are available to offset a liability, the earlier credit | ||||||
16 | shall be applied first. | ||||||
17 | (d) A taxpayer claiming the credit under this Section must | ||||||
18 | maintain and record any information that the Illinois Student | ||||||
19 | Assistance Commission, the Office of the State Treasurer, or | ||||||
20 | the Department may require regarding the matching contribution | ||||||
21 | for which the credit is claimed. | ||||||
22 | (Source: P.A. 101-645, eff. 6-26-20; 102-289, eff. 8-6-21.) | ||||||
23 | (Text of Section after amendment by P.A. 103-396 ) | ||||||
24 | Sec. 218. Credit for student-assistance contributions. | ||||||
25 | (a) For taxable years ending on or after December 31, 2009 |
| |||||||
| |||||||
1 | and on or before December 31, 2024, each taxpayer who, during | ||||||
2 | the taxable year, makes a contribution (i) to a specified | ||||||
3 | individual College , Secondary, and Elementary Education | ||||||
4 | Savings Pool Account under Section 16.5 of the State Treasurer | ||||||
5 | Act or (ii) to the Illinois Prepaid Tuition Trust Fund in an | ||||||
6 | amount matching a contribution made in the same taxable year | ||||||
7 | by an employee of the taxpayer to that Account or Fund is | ||||||
8 | entitled to a credit against the tax imposed under subsections | ||||||
9 | (a) and (b) of Section 201 in an amount equal to 25% of that | ||||||
10 | matching contribution, but not to exceed $500 per contributing | ||||||
11 | employee per taxable year. | ||||||
12 | (b) For taxable years ending before December 31, 2023, for | ||||||
13 | partners, shareholders of Subchapter S corporations, and | ||||||
14 | owners of limited liability companies, if the liability | ||||||
15 | company is treated as a partnership for purposes of federal | ||||||
16 | and State income taxation, there is allowed a credit under | ||||||
17 | this Section to be determined in accordance with the | ||||||
18 | determination of income and distributive share of income under | ||||||
19 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
20 | Code. For taxable years ending on or after December 31, 2023, | ||||||
21 | partners and shareholders of subchapter S corporations are | ||||||
22 | entitled to a credit under this Section as provided in Section | ||||||
23 | 251. | ||||||
24 | (c) The credit may not be carried back. If the amount of | ||||||
25 | the credit exceeds the tax liability for the year, the excess | ||||||
26 | may be carried forward and applied to the tax liability of the |
| |||||||
| |||||||
1 | 5 taxable years following the excess credit year. The tax | ||||||
2 | credit shall be applied to the earliest year for which there is | ||||||
3 | a tax liability. If there are credits for more than one year | ||||||
4 | that are available to offset a liability, the earlier credit | ||||||
5 | shall be applied first. | ||||||
6 | (d) A taxpayer claiming the credit under this Section must | ||||||
7 | maintain and record any information that the Illinois Student | ||||||
8 | Assistance Commission, the Office of the State Treasurer, or | ||||||
9 | the Department may require regarding the matching contribution | ||||||
10 | for which the credit is claimed. | ||||||
11 | (Source: P.A. 102-289, eff. 8-6-21; 103-396, eff. 1-1-24.) | ||||||
12 | Section 20. The Code of Civil Procedure is amended by | ||||||
13 | changing Section 12-1001 as follows: | ||||||
14 | (735 ILCS 5/12-1001) (from Ch. 110, par. 12-1001) | ||||||
15 | Sec. 12-1001. Personal property exempt. The following | ||||||
16 | personal property, owned by the debtor, is exempt from | ||||||
17 | judgment, attachment, or distress for rent: | ||||||
18 | (a) The necessary wearing apparel, bible, school | ||||||
19 | books, and family pictures of the debtor and the debtor's | ||||||
20 | dependents; | ||||||
21 | (b) The debtor's equity interest, not to exceed $4,000 | ||||||
22 | in value, in any other property; | ||||||
23 | (c) The debtor's interest, not to exceed $2,400 in | ||||||
24 | value, in any one motor vehicle; |
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1 | (d) The debtor's equity interest, not to exceed $1,500 | ||||||
2 | in value, in any implements, professional books, or tools | ||||||
3 | of the trade of the debtor; | ||||||
4 | (e) Professionally prescribed health aids for the | ||||||
5 | debtor or a dependent of the debtor; | ||||||
6 | (f) All proceeds payable because of the death of the | ||||||
7 | insured and the aggregate net cash value of any or all life | ||||||
8 | insurance and endowment policies and annuity contracts | ||||||
9 | payable to a wife or husband of the insured, or to a child, | ||||||
10 | parent, or other person dependent upon the insured, or to | ||||||
11 | a revocable or irrevocable trust which names the wife or | ||||||
12 | husband of the insured or which names a child, parent, or | ||||||
13 | other person dependent upon the insured as the primary | ||||||
14 | beneficiary of the trust, whether the power to change the | ||||||
15 | beneficiary is reserved to the insured or not and whether | ||||||
16 | the insured or the insured's estate is a contingent | ||||||
17 | beneficiary or not; | ||||||
18 | (g) The debtor's right to receive: | ||||||
19 | (1) a social security benefit, unemployment | ||||||
20 | compensation, or public assistance benefit; | ||||||
21 | (2) a veteran's benefit; | ||||||
22 | (3) a disability, illness, or unemployment | ||||||
23 | benefit; and | ||||||
24 | (4) alimony, support, or separate maintenance, to | ||||||
25 | the extent reasonably necessary for the support of the | ||||||
26 | debtor and any dependent of the debtor. |
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1 | (h) The debtor's right to receive, or property that is | ||||||
2 | traceable to: | ||||||
3 | (1) an award under a crime victim's reparation | ||||||
4 | law; | ||||||
5 | (2) a payment on account of the wrongful death of | ||||||
6 | an individual of whom the debtor was a dependent, to | ||||||
7 | the extent reasonably necessary for the support of the | ||||||
8 | debtor; | ||||||
9 | (3) a payment under a life insurance contract that | ||||||
10 | insured the life of an individual of whom the debtor | ||||||
11 | was a dependent, to the extent reasonably necessary | ||||||
12 | for the support of the debtor or a dependent of the | ||||||
13 | debtor; | ||||||
14 | (4) a payment, not to exceed $15,000 in value, on | ||||||
15 | account of personal bodily injury of the debtor or an | ||||||
16 | individual of whom the debtor was a dependent; and | ||||||
17 | (5) any restitution payments made to persons | ||||||
18 | pursuant to the federal Civil Liberties Act of 1988 | ||||||
19 | and the Aleutian and Pribilof Island Restitution Act, | ||||||
20 | P.L. 100-383. | ||||||
21 | For purposes of this subsection (h), a debtor's right | ||||||
22 | to receive an award or payment shall be exempt for a | ||||||
23 | maximum of 2 years after the debtor's right to receive the | ||||||
24 | award or payment accrues; property traceable to an award | ||||||
25 | or payment shall be exempt for a maximum of 5 years after | ||||||
26 | the award or payment accrues; and an award or payment and |
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| |||||||
1 | property traceable to an award or payment shall be exempt | ||||||
2 | only to the extent of the amount of the award or payment, | ||||||
3 | without interest or appreciation from the date of the | ||||||
4 | award or payment. | ||||||
5 | (i) The debtor's right to receive an award under Part | ||||||
6 | 20 of Article II of this Code relating to crime victims' | ||||||
7 | awards. | ||||||
8 | (j) Moneys held in an account invested in the Illinois | ||||||
9 | College , Secondary, and Elementary Education Savings Pool | ||||||
10 | of which the debtor is a participant or donor and funds | ||||||
11 | invested in an ABLE Account as defined by Section 529 of | ||||||
12 | the Internal Revenue Code, except the following non-exempt | ||||||
13 | contributions: | ||||||
14 | (1) any contribution to such account by the debtor | ||||||
15 | as participant or donor that is made with the actual | ||||||
16 | intent to hinder, delay, or defraud any creditor of | ||||||
17 | the debtor; | ||||||
18 | (2) any contributions to such account by the | ||||||
19 | debtor as participant during the 365 day period prior | ||||||
20 | to the date of filing of the debtor's petition for | ||||||
21 | bankruptcy that, in the aggregate during such period, | ||||||
22 | exceed the amount of the annual gift tax exclusion | ||||||
23 | under Section 2503(b) of the Internal Revenue Code of | ||||||
24 | 1986, as amended, in effect at the time of | ||||||
25 | contribution; or | ||||||
26 | (3) any contributions to such account by the |
| |||||||
| |||||||
1 | debtor as participant during the period commencing 730 | ||||||
2 | days prior to and ending 366 days prior to the date of | ||||||
3 | filing of the debtor's petition for bankruptcy that, | ||||||
4 | in the aggregate during such period, exceed the amount | ||||||
5 | of the annual gift tax exclusion under Section 2503(b) | ||||||
6 | of the Internal Revenue Code of 1986, as amended, in | ||||||
7 | effect at the time of contribution. | ||||||
8 | For purposes of this subsection (j), "account" | ||||||
9 | includes all accounts for a particular designated | ||||||
10 | beneficiary, of which the debtor is a participant or | ||||||
11 | donor. | ||||||
12 | Money due the debtor from the sale of any personal | ||||||
13 | property that was exempt from judgment, attachment, or | ||||||
14 | distress for rent at the time of the sale is exempt from | ||||||
15 | attachment and garnishment to the same extent that the | ||||||
16 | property would be exempt had the same not been sold by the | ||||||
17 | debtor. | ||||||
18 | If a debtor owns property exempt under this Section and he | ||||||
19 | or she purchased that property with the intent of converting | ||||||
20 | nonexempt property into exempt property or in fraud of his or | ||||||
21 | her creditors, that property shall not be exempt from | ||||||
22 | judgment, attachment, or distress for rent. Property acquired | ||||||
23 | within 6 months of the filing of the petition for bankruptcy | ||||||
24 | shall be presumed to have been acquired in contemplation of | ||||||
25 | bankruptcy. | ||||||
26 | The personal property exemptions set forth in this Section |
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| |||||||
1 | shall apply only to individuals and only to personal property | ||||||
2 | that is used for personal rather than business purposes. The | ||||||
3 | personal property exemptions set forth in this Section shall | ||||||
4 | not apply to or be allowed against any money, salary, or wages | ||||||
5 | due or to become due to the debtor that are required to be | ||||||
6 | withheld in a wage deduction proceeding under Part 8 of this | ||||||
7 | Article XII. | ||||||
8 | (Source: P.A. 100-922, eff. 1-1-19 .) | ||||||
9 | Section 25. The Illinois Marriage and Dissolution of | ||||||
10 | Marriage Act is amended by changing Section 513 as follows: | ||||||
11 | (750 ILCS 5/513) (from Ch. 40, par. 513) | ||||||
12 | Sec. 513. Educational expenses for a non-minor child. | ||||||
13 | (a) The court may award sums of money out of the property | ||||||
14 | and income of either or both parties or the estate of a | ||||||
15 | deceased parent, as equity may require, for the educational | ||||||
16 | expenses of any child of the parties. Unless otherwise agreed | ||||||
17 | to by the parties, all educational expenses which are the | ||||||
18 | subject of a petition brought pursuant to this Section shall | ||||||
19 | be incurred no later than the student's 23rd birthday, except | ||||||
20 | for good cause shown, but in no event later than the child's | ||||||
21 | 25th birthday. | ||||||
22 | (b) Regardless of whether an award has been made under | ||||||
23 | subsection (a), the court may require both parties and the | ||||||
24 | child to complete the Free Application for Federal Student Aid |
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| |||||||
1 | (FAFSA) and other financial aid forms and to submit any form of | ||||||
2 | that type prior to the designated submission deadline for the | ||||||
3 | form. The court may require either or both parties to provide | ||||||
4 | funds for the child so as to pay for the cost of up to 5 | ||||||
5 | college applications, the cost of 2 standardized college | ||||||
6 | entrance examinations, and the cost of one standardized | ||||||
7 | college entrance examination preparatory course. | ||||||
8 | (c) The authority under this Section to make provision for | ||||||
9 | educational expenses extends not only to periods of college | ||||||
10 | education or vocational or professional or other training | ||||||
11 | after graduation from high school, but also to any period | ||||||
12 | during which the child of the parties is still attending high | ||||||
13 | school, even though he or she attained the age of 19. | ||||||
14 | (d) Educational expenses may include, but shall not be | ||||||
15 | limited to, the following: | ||||||
16 | (1) except for good cause shown, the actual cost of | ||||||
17 | the child's post-secondary expenses, including tuition and | ||||||
18 | fees, provided that the cost for tuition and fees does not | ||||||
19 | exceed the amount of in-state tuition and fees paid by a | ||||||
20 | student at the University of Illinois at Urbana-Champaign | ||||||
21 | for the same academic year; | ||||||
22 | (2) except for good cause shown, the actual costs of | ||||||
23 | the child's housing expenses, whether on-campus or | ||||||
24 | off-campus, provided that the housing expenses do not | ||||||
25 | exceed the cost for the same academic year of a | ||||||
26 | double-occupancy student room, with a standard meal plan, |
| |||||||
| |||||||
1 | in a residence hall operated by the University of Illinois | ||||||
2 | at Urbana-Champaign; | ||||||
3 | (3) the actual costs of the child's medical expenses, | ||||||
4 | including medical insurance, and dental expenses; | ||||||
5 | (4) the reasonable living expenses of the child during | ||||||
6 | the academic year and periods of recess: | ||||||
7 | (A) if the child is a resident student attending a | ||||||
8 | post-secondary educational program; or | ||||||
9 | (B) if the child is living with one party at that | ||||||
10 | party's home and attending a post-secondary | ||||||
11 | educational program as a non-resident student, in | ||||||
12 | which case the living expenses include an amount that | ||||||
13 | pays for the reasonable cost of the child's food, | ||||||
14 | utilities, and transportation; and | ||||||
15 | (5) the cost of books and other supplies necessary to | ||||||
16 | attend college. | ||||||
17 | (e) Sums may be ordered payable to the child, to either | ||||||
18 | party, or to the educational institution, directly or through | ||||||
19 | a special account or trust created for that purpose, as the | ||||||
20 | court sees fit. | ||||||
21 | (f) If educational expenses are ordered payable, each | ||||||
22 | party and the child shall sign any consent necessary for the | ||||||
23 | educational institution to provide a supporting party with | ||||||
24 | access to the child's academic transcripts, records, and grade | ||||||
25 | reports. The consent shall not apply to any non-academic | ||||||
26 | records. Failure to execute the required consent may be a |
| |||||||
| |||||||
1 | basis for a modification or termination of any order entered | ||||||
2 | under this Section. Unless the court specifically finds that | ||||||
3 | the child's safety would be jeopardized, each party is | ||||||
4 | entitled to know the name of the educational institution the | ||||||
5 | child attends. | ||||||
6 | (g) The authority under this Section to make provision for | ||||||
7 | educational expenses terminates when the child either: fails | ||||||
8 | to maintain a cumulative "C" grade point average, except in | ||||||
9 | the event of illness or other good cause shown; attains the age | ||||||
10 | of 23; receives a baccalaureate degree; or marries. A child's | ||||||
11 | enlisting in the armed forces, being incarcerated, or becoming | ||||||
12 | pregnant does not terminate the court's authority to make | ||||||
13 | provisions for the educational expenses for the child under | ||||||
14 | this Section. | ||||||
15 | (h) An account established prior to the dissolution that | ||||||
16 | is to be used for the child's elementary, secondary, and | ||||||
17 | post-secondary education, that is an account in a state | ||||||
18 | tuition program under Section 529 of the Internal Revenue | ||||||
19 | Code, or that is some other college , secondary, or elementary | ||||||
20 | education savings plan, is to be considered by the court to be | ||||||
21 | a resource of the child, provided that any post-judgment | ||||||
22 | contribution made by a party to such an account is to be | ||||||
23 | considered a contribution from that party. | ||||||
24 | (i) The child is not a third party beneficiary to the | ||||||
25 | settlement agreement or judgment between the parties after | ||||||
26 | trial and is not entitled to file a petition for contribution. |
| |||||||
| |||||||
1 | If the parties' settlement agreement describes the manner in | ||||||
2 | which a child's educational expenses will be paid, or if the | ||||||
3 | court makes an award pursuant to this Section, then the | ||||||
4 | parties are responsible pursuant to that agreement or award | ||||||
5 | for the child's educational expenses, but in no event shall | ||||||
6 | the court consider the child a third party beneficiary of that | ||||||
7 | provision. In the event of the death or legal disability of a | ||||||
8 | party who would have the right to file a petition for | ||||||
9 | contribution, the child of the party may file a petition for | ||||||
10 | contribution. | ||||||
11 | (j) In making awards under this Section, or pursuant to a | ||||||
12 | petition or motion to decrease, modify, or terminate any such | ||||||
13 | award, the court shall consider all relevant factors that | ||||||
14 | appear reasonable and necessary, including: | ||||||
15 | (1) The present and future financial resources of both | ||||||
16 | parties to meet their needs, including, but not limited | ||||||
17 | to, savings for retirement. | ||||||
18 | (2) The standard of living the child would have | ||||||
19 | enjoyed had the marriage not been dissolved. | ||||||
20 | (3) The financial resources of the child. | ||||||
21 | (4) The child's academic performance. | ||||||
22 | (k) The establishment of an obligation to pay under this | ||||||
23 | Section is retroactive only to the date of filing a petition. | ||||||
24 | The right to enforce a prior obligation to pay may be enforced | ||||||
25 | either before or after the obligation is incurred. | ||||||
26 | (Source: P.A. 99-90, eff. 1-1-16; 99-143, eff. 7-27-15; |
| |||||||
| |||||||
1 | 99-642, eff. 7-28-16; 99-763, eff. 1-1-17 .) | ||||||
2 | Section 95. No acceleration or delay. Where this Act makes | ||||||
3 | changes in a statute that is represented in this Act by text | ||||||
4 | that is not yet or no longer in effect (for example, a Section | ||||||
5 | represented by multiple versions), the use of that text does | ||||||
6 | not accelerate or delay the taking effect of (i) the changes | ||||||
7 | made by this Act or (ii) provisions derived from any other | ||||||
8 | Public Act. | ||||||
9 | Section 99. Effective date. This Act takes effect upon | ||||||
10 | becoming law. |