103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5310

 

Introduced 2/9/2024, by Rep. Abdelnasser Rashid

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/203

    Amends the Illinois Income Tax Act. Creates a deduction for amounts that are included in the taxpayer's federal adjusted gross income for the taxable year that are attributable to the conversion of funds from a qualified tuition program established pursuant to Section 529 of the Internal Revenue Code to a Roth IRA. Effective immediately.


LRB103 38162 HLH 68295 b

 

 

A BILL FOR

 

HB5310LRB103 38162 HLH 68295 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 203 as follows:
 
6    (35 ILCS 5/203)
7    Sec. 203. Base income defined.
8    (a) Individuals.
9        (1) In general. In the case of an individual, base
10    income means an amount equal to the taxpayer's adjusted
11    gross income for the taxable year as modified by paragraph
12    (2).
13        (2) Modifications. The adjusted gross income referred
14    to in paragraph (1) shall be modified by adding thereto
15    the sum of the following amounts:
16            (A) An amount equal to all amounts paid or accrued
17        to the taxpayer as interest or dividends during the
18        taxable year to the extent excluded from gross income
19        in the computation of adjusted gross income, except
20        stock dividends of qualified public utilities
21        described in Section 305(e) of the Internal Revenue
22        Code;
23            (B) An amount equal to the amount of tax imposed by

 

 

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1        this Act to the extent deducted from gross income in
2        the computation of adjusted gross income for the
3        taxable year;
4            (C) An amount equal to the amount received during
5        the taxable year as a recovery or refund of real
6        property taxes paid with respect to the taxpayer's
7        principal residence under the Revenue Act of 1939 and
8        for which a deduction was previously taken under
9        subparagraph (L) of this paragraph (2) prior to July
10        1, 1991, the retrospective application date of Article
11        4 of Public Act 87-17. In the case of multi-unit or
12        multi-use structures and farm dwellings, the taxes on
13        the taxpayer's principal residence shall be that
14        portion of the total taxes for the entire property
15        which is attributable to such principal residence;
16            (D) An amount equal to the amount of the capital
17        gain deduction allowable under the Internal Revenue
18        Code, to the extent deducted from gross income in the
19        computation of adjusted gross income;
20            (D-5) An amount, to the extent not included in
21        adjusted gross income, equal to the amount of money
22        withdrawn by the taxpayer in the taxable year from a
23        medical care savings account and the interest earned
24        on the account in the taxable year of a withdrawal
25        pursuant to subsection (b) of Section 20 of the
26        Medical Care Savings Account Act or subsection (b) of

 

 

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1        Section 20 of the Medical Care Savings Account Act of
2        2000;
3            (D-10) For taxable years ending after December 31,
4        1997, an amount equal to any eligible remediation
5        costs that the individual deducted in computing
6        adjusted gross income and for which the individual
7        claims a credit under subsection (l) of Section 201;
8            (D-15) For taxable years 2001 and thereafter, an
9        amount equal to the bonus depreciation deduction taken
10        on the taxpayer's federal income tax return for the
11        taxable year under subsection (k) of Section 168 of
12        the Internal Revenue Code;
13            (D-16) If the taxpayer sells, transfers, abandons,
14        or otherwise disposes of property for which the
15        taxpayer was required in any taxable year to make an
16        addition modification under subparagraph (D-15), then
17        an amount equal to the aggregate amount of the
18        deductions taken in all taxable years under
19        subparagraph (Z) with respect to that property.
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 (Z) and for which the taxpayer was
24        allowed in any taxable year to make a subtraction
25        modification under subparagraph (Z), then an amount
26        equal to that subtraction modification.

 

 

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1            The taxpayer is required to make the addition
2        modification under this subparagraph only once with
3        respect to any one piece of property;
4            (D-17) An amount equal to the amount otherwise
5        allowed as a deduction in computing base income for
6        interest paid, accrued, or incurred, directly or
7        indirectly, (i) for taxable years ending on or after
8        December 31, 2004, to a foreign person who would be a
9        member of the same unitary business group but for the
10        fact that foreign person's business activity outside
11        the United States is 80% or more of the foreign
12        person's total business activity and (ii) for taxable
13        years ending on or after December 31, 2008, to a person
14        who would be a member of the same unitary business
15        group but for the fact that the person is prohibited
16        under Section 1501(a)(27) from being included in the
17        unitary business group because he or she is ordinarily
18        required to apportion business income under different
19        subsections of Section 304. The addition modification
20        required by this subparagraph shall be reduced to the
21        extent that dividends were included in base income of
22        the unitary group for the same taxable year and
23        received by the taxpayer or by a member of the
24        taxpayer's unitary business group (including amounts
25        included in gross income under Sections 951 through
26        964 of the Internal Revenue Code and amounts included

 

 

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1        in gross income under Section 78 of the Internal
2        Revenue Code) with respect to the stock of the same
3        person to whom the interest was paid, accrued, or
4        incurred.
5            This paragraph shall not apply to the following:
6                (i) an item of interest paid, accrued, or
7            incurred, directly or indirectly, to a person who
8            is subject in a foreign country or state, other
9            than a state which requires mandatory unitary
10            reporting, to a tax on or measured by net income
11            with respect to such interest; or
12                (ii) an item of interest paid, accrued, or
13            incurred, directly or indirectly, to a person if
14            the taxpayer can establish, based on a
15            preponderance of the evidence, both of the
16            following:
17                    (a) the person, during the same taxable
18                year, paid, accrued, or incurred, the interest
19                to a person that is not a related member, and
20                    (b) the transaction giving rise to the
21                interest expense between the taxpayer and the
22                person did not have as a principal purpose the
23                avoidance of Illinois income tax, and is paid
24                pursuant to a contract or agreement that
25                reflects an arm's-length interest rate and
26                terms; or

 

 

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1                (iii) the taxpayer can establish, based on
2            clear and convincing evidence, that the interest
3            paid, accrued, or incurred relates to a contract
4            or agreement entered into at arm's-length rates
5            and terms and the principal purpose for the
6            payment is not federal or Illinois tax avoidance;
7            or
8                (iv) an item of interest paid, accrued, or
9            incurred, directly or indirectly, to a person if
10            the taxpayer establishes by clear and convincing
11            evidence that the adjustments are unreasonable; or
12            if the taxpayer and the Director agree in writing
13            to the application or use of an alternative method
14            of apportionment under Section 304(f).
15                Nothing in this subsection shall preclude the
16            Director from making any other adjustment
17            otherwise allowed under Section 404 of this Act
18            for any tax year beginning after the effective
19            date of this amendment provided such adjustment is
20            made pursuant to regulation adopted by the
21            Department and such regulations provide methods
22            and standards by which the Department will utilize
23            its authority under Section 404 of this Act;
24            (D-18) An amount equal to the amount of intangible
25        expenses and costs otherwise allowed as a deduction in
26        computing base income, and that were paid, accrued, or

 

 

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1        incurred, directly or indirectly, (i) for taxable
2        years ending on or after December 31, 2004, to a
3        foreign person who would be a member of the same
4        unitary business group but for the fact that the
5        foreign person's business activity outside the United
6        States is 80% or more of that person's total business
7        activity and (ii) for taxable years ending on or after
8        December 31, 2008, to a person who would be a member of
9        the same unitary business group but for the fact that
10        the person is prohibited under Section 1501(a)(27)
11        from being included in the unitary business group
12        because he or she is ordinarily required to apportion
13        business income under different subsections of Section
14        304. The addition modification required by this
15        subparagraph shall be reduced to the extent that
16        dividends were included in base income of the unitary
17        group for the same taxable year and received by the
18        taxpayer or by a member of the taxpayer's unitary
19        business group (including amounts included in gross
20        income under Sections 951 through 964 of the Internal
21        Revenue Code and amounts included in gross income
22        under Section 78 of the Internal Revenue Code) with
23        respect to the stock of the same person to whom the
24        intangible expenses and costs were directly or
25        indirectly paid, incurred, or accrued. The preceding
26        sentence does not apply to the extent that the same

 

 

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1        dividends caused a reduction to the addition
2        modification required under Section 203(a)(2)(D-17) of
3        this Act. As used in this subparagraph, the term
4        "intangible expenses and costs" includes (1) expenses,
5        losses, and costs for, or related to, the direct or
6        indirect acquisition, use, maintenance or management,
7        ownership, sale, exchange, or any other disposition of
8        intangible property; (2) losses incurred, directly or
9        indirectly, from factoring transactions or discounting
10        transactions; (3) royalty, patent, technical, and
11        copyright fees; (4) licensing fees; and (5) other
12        similar expenses and costs. For purposes of this
13        subparagraph, "intangible property" includes patents,
14        patent applications, trade names, trademarks, service
15        marks, copyrights, mask works, trade secrets, and
16        similar types of intangible assets.
17            This paragraph shall not apply to the following:
18                (i) any item of intangible expenses or costs
19            paid, accrued, or incurred, directly or
20            indirectly, from a transaction with a person who
21            is subject in a foreign country or state, other
22            than a state which requires mandatory unitary
23            reporting, to a tax on or measured by net income
24            with respect to such item; or
25                (ii) any item of intangible expense or cost
26            paid, accrued, or incurred, directly or

 

 

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1            indirectly, if the taxpayer can establish, based
2            on a preponderance of the evidence, both of the
3            following:
4                    (a) the person during the same taxable
5                year paid, accrued, or incurred, the
6                intangible expense or cost to a person that is
7                not a related member, and
8                    (b) the transaction giving rise to the
9                intangible expense or cost between the
10                taxpayer and the person did not have as a
11                principal purpose the avoidance of Illinois
12                income tax, and is paid pursuant to a contract
13                or agreement that reflects arm's-length terms;
14                or
15                (iii) any item of intangible expense or cost
16            paid, accrued, or incurred, directly or
17            indirectly, from a transaction with a person if
18            the taxpayer establishes by clear and convincing
19            evidence, that the adjustments are unreasonable;
20            or if the taxpayer and the Director agree in
21            writing to the application or use of an
22            alternative method of apportionment under Section
23            304(f);
24                Nothing in this subsection shall preclude the
25            Director from making any other adjustment
26            otherwise allowed under Section 404 of this Act

 

 

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1            for any tax year beginning after the effective
2            date of this amendment provided such adjustment is
3            made pursuant to regulation adopted by the
4            Department and such regulations provide methods
5            and standards by which the Department will utilize
6            its authority under Section 404 of this Act;
7            (D-19) For taxable years ending on or after
8        December 31, 2008, an amount equal to the amount of
9        insurance premium expenses and costs otherwise allowed
10        as a deduction in computing base income, and that were
11        paid, accrued, or incurred, directly or indirectly, to
12        a person who would be a member of the same unitary
13        business group but for the fact that the person is
14        prohibited under Section 1501(a)(27) from being
15        included in the unitary business group because he or
16        she is ordinarily required to apportion business
17        income under different subsections of Section 304. The
18        addition modification required by this subparagraph
19        shall be reduced to the extent that dividends were
20        included in base income of the unitary group for the
21        same taxable year and received by the taxpayer or by a
22        member of the taxpayer's unitary business group
23        (including amounts included in gross income under
24        Sections 951 through 964 of the Internal Revenue Code
25        and amounts included in gross income under Section 78
26        of the Internal Revenue Code) with respect to the

 

 

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1        stock of the same person to whom the premiums and costs
2        were directly or indirectly paid, incurred, or
3        accrued. The preceding sentence does not apply to the
4        extent that the same dividends caused a reduction to
5        the addition modification required under Section
6        203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
7        Act;
8            (D-20) For taxable years beginning on or after
9        January 1, 2002 and ending on or before December 31,
10        2006, in the case of a distribution from a qualified
11        tuition program under Section 529 of the Internal
12        Revenue Code, other than (i) a distribution from a
13        College Savings Pool created under Section 16.5 of the
14        State Treasurer Act or (ii) a distribution from the
15        Illinois Prepaid Tuition Trust Fund, an amount equal
16        to the amount excluded from gross income under Section
17        529(c)(3)(B). For taxable years beginning on or after
18        January 1, 2007, in the case of a distribution from a
19        qualified tuition program under Section 529 of the
20        Internal Revenue Code, other than (i) a distribution
21        from a College Savings Pool created under Section 16.5
22        of the State Treasurer Act, (ii) a distribution from
23        the Illinois Prepaid Tuition Trust Fund, or (iii) a
24        distribution from a qualified tuition program under
25        Section 529 of the Internal Revenue Code that (I)
26        adopts and determines that its offering materials

 

 

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1        comply with the College Savings Plans Network's
2        disclosure principles and (II) has made reasonable
3        efforts to inform in-state residents of the existence
4        of in-state qualified tuition programs by informing
5        Illinois residents directly and, where applicable, to
6        inform financial intermediaries distributing the
7        program to inform in-state residents of the existence
8        of in-state qualified tuition programs at least
9        annually, an amount equal to the amount excluded from
10        gross income under Section 529(c)(3)(B).
11            For the purposes of this subparagraph (D-20), a
12        qualified tuition program has made reasonable efforts
13        if it makes disclosures (which may use the term
14        "in-state program" or "in-state plan" and need not
15        specifically refer to Illinois or its qualified
16        programs by name) (i) directly to prospective
17        participants in its offering materials or makes a
18        public disclosure, such as a website posting; and (ii)
19        where applicable, to intermediaries selling the
20        out-of-state program in the same manner that the
21        out-of-state program distributes its offering
22        materials;
23            (D-20.5) For taxable years beginning on or after
24        January 1, 2018, in the case of a distribution from a
25        qualified ABLE program under Section 529A of the
26        Internal Revenue Code, other than a distribution from

 

 

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1        a qualified ABLE program created under Section 16.6 of
2        the State Treasurer Act, an amount equal to the amount
3        excluded from gross income under Section 529A(c)(1)(B)
4        of the Internal Revenue Code;
5            (D-21) For taxable years beginning on or after
6        January 1, 2007, in the case of transfer of moneys from
7        a qualified tuition program under Section 529 of the
8        Internal Revenue Code that is administered by the
9        State to an out-of-state program, an amount equal to
10        the amount of moneys previously deducted from base
11        income under subsection (a)(2)(Y) of this Section;
12            (D-21.5) For taxable years beginning on or after
13        January 1, 2018, in the case of the transfer of moneys
14        from a qualified tuition program under Section 529 or
15        a qualified ABLE program under Section 529A of the
16        Internal Revenue Code that is administered by this
17        State to an ABLE account established under an
18        out-of-state ABLE account program, an amount equal to
19        the contribution component of the transferred amount
20        that was previously deducted from base income under
21        subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
22        Section;
23            (D-22) For taxable years beginning on or after
24        January 1, 2009, and prior to January 1, 2018, in the
25        case of a nonqualified withdrawal or refund of moneys
26        from a qualified tuition program under Section 529 of

 

 

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1        the Internal Revenue Code administered by the State
2        that is not used for qualified expenses at an eligible
3        education institution, an amount equal to the
4        contribution component of the nonqualified withdrawal
5        or refund that was previously deducted from base
6        income under subsection (a)(2)(y) of this Section,
7        provided that the withdrawal or refund did not result
8        from the beneficiary's death or disability. For
9        taxable years beginning on or after January 1, 2018:
10        (1) in the case of a nonqualified withdrawal or
11        refund, as defined under Section 16.5 of the State
12        Treasurer Act, of moneys from a qualified tuition
13        program under Section 529 of the Internal Revenue Code
14        administered by the State, an amount equal to the
15        contribution component of the nonqualified withdrawal
16        or refund that was previously deducted from base
17        income under subsection (a)(2)(Y) of this Section, and
18        (2) in the case of a nonqualified withdrawal or refund
19        from a qualified ABLE program under Section 529A of
20        the Internal Revenue Code administered by the State
21        that is not used for qualified disability expenses, an
22        amount equal to the contribution component of the
23        nonqualified withdrawal or refund that was previously
24        deducted from base income under subsection (a)(2)(HH)
25        of this Section;
26            (D-23) An amount equal to the credit allowable to

 

 

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1        the taxpayer under Section 218(a) of this Act,
2        determined without regard to Section 218(c) of this
3        Act;
4            (D-24) For taxable years ending on or after
5        December 31, 2017, an amount equal to the deduction
6        allowed under Section 199 of the Internal Revenue Code
7        for the taxable year;
8            (D-25) In the case of a resident, an amount equal
9        to the amount of tax for which a credit is allowed
10        pursuant to Section 201(p)(7) of this Act;
11    and by deducting from the total so obtained the sum of the
12    following amounts:
13            (E) For taxable years ending before December 31,
14        2001, any amount included in such total in respect of
15        any compensation (including but not limited to any
16        compensation paid or accrued to a serviceman while a
17        prisoner of war or missing in action) paid to a
18        resident by reason of being on active duty in the Armed
19        Forces of the United States and in respect of any
20        compensation paid or accrued to a resident who as a
21        governmental employee was a prisoner of war or missing
22        in action, and in respect of any compensation paid to a
23        resident in 1971 or thereafter for annual training
24        performed pursuant to Sections 502 and 503, Title 32,
25        United States Code as a member of the Illinois
26        National Guard or, beginning with taxable years ending

 

 

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1        on or after December 31, 2007, the National Guard of
2        any other state. For taxable years ending on or after
3        December 31, 2001, any amount included in such total
4        in respect of any compensation (including but not
5        limited to any compensation paid or accrued to a
6        serviceman while a prisoner of war or missing in
7        action) paid to a resident by reason of being a member
8        of any component of the Armed Forces of the United
9        States and in respect of any compensation paid or
10        accrued to a resident who as a governmental employee
11        was a prisoner of war or missing in action, and in
12        respect of any compensation paid to a resident in 2001
13        or thereafter by reason of being a member of the
14        Illinois National Guard or, beginning with taxable
15        years ending on or after December 31, 2007, the
16        National Guard of any other state. The provisions of
17        this subparagraph (E) are exempt from the provisions
18        of Section 250;
19            (F) An amount equal to all amounts included in
20        such total pursuant to the provisions of Sections
21        402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
22        408 of the Internal Revenue Code, or included in such
23        total as distributions under the provisions of any
24        retirement or disability plan for employees of any
25        governmental agency or unit, or retirement payments to
26        retired partners, which payments are excluded in

 

 

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1        computing net earnings from self employment by Section
2        1402 of the Internal Revenue Code and regulations
3        adopted pursuant thereto;
4            (G) The valuation limitation amount;
5            (H) An amount equal to the amount of any tax
6        imposed by this Act which was refunded to the taxpayer
7        and included in such total for the taxable year;
8            (I) An amount equal to all amounts included in
9        such total pursuant to the provisions of Section 111
10        of the Internal Revenue Code as a recovery of items
11        previously deducted from adjusted gross income in the
12        computation of taxable income;
13            (J) An amount equal to those dividends included in
14        such total which were paid by a corporation which
15        conducts business operations in a River Edge
16        Redevelopment Zone or zones created under the River
17        Edge Redevelopment Zone Act, and conducts
18        substantially all of its operations in a River Edge
19        Redevelopment Zone or zones. This subparagraph (J) is
20        exempt from the provisions of Section 250;
21            (K) An amount equal to those dividends included in
22        such total that were paid by a corporation that
23        conducts business operations in a federally designated
24        Foreign Trade Zone or Sub-Zone and that is designated
25        a High Impact Business located in Illinois; provided
26        that dividends eligible for the deduction provided in

 

 

HB5310- 18 -LRB103 38162 HLH 68295 b

1        subparagraph (J) of paragraph (2) of this subsection
2        shall not be eligible for the deduction provided under
3        this subparagraph (K);
4            (L) For taxable years ending after December 31,
5        1983, an amount equal to all social security benefits
6        and railroad retirement benefits included in such
7        total pursuant to Sections 72(r) and 86 of the
8        Internal Revenue Code;
9            (M) With the exception of any amounts subtracted
10        under subparagraph (N), an amount equal to the sum of
11        all amounts disallowed as deductions by (i) Sections
12        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
13        and all amounts of expenses allocable to interest and
14        disallowed as deductions by Section 265(a)(1) of the
15        Internal Revenue Code; and (ii) for taxable years
16        ending on or after August 13, 1999, Sections
17        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
18        Internal Revenue Code, plus, for taxable years ending
19        on or after December 31, 2011, Section 45G(e)(3) of
20        the Internal Revenue Code and, for taxable years
21        ending on or after December 31, 2008, any amount
22        included in gross income under Section 87 of the
23        Internal Revenue Code; the provisions of this
24        subparagraph are exempt from the provisions of Section
25        250;
26            (N) An amount equal to all amounts included in

 

 

HB5310- 19 -LRB103 38162 HLH 68295 b

1        such total which are exempt from taxation by this
2        State either by reason of its statutes or Constitution
3        or by reason of the Constitution, treaties or statutes
4        of the United States; provided that, in the case of any
5        statute of this State that exempts income derived from
6        bonds or other obligations from the tax imposed under
7        this Act, the amount exempted shall be the interest
8        net of bond premium amortization;
9            (O) An amount equal to any contribution made to a
10        job training project established pursuant to the Tax
11        Increment Allocation Redevelopment Act;
12            (P) An amount equal to the amount of the deduction
13        used to compute the federal income tax credit for
14        restoration of substantial amounts held under claim of
15        right for the taxable year pursuant to Section 1341 of
16        the Internal Revenue Code or of any itemized deduction
17        taken from adjusted gross income in the computation of
18        taxable income for restoration of substantial amounts
19        held under claim of right for the taxable year;
20            (Q) An amount equal to any amounts included in
21        such total, received by the taxpayer as an
22        acceleration in the payment of life, endowment or
23        annuity benefits in advance of the time they would
24        otherwise be payable as an indemnity for a terminal
25        illness;
26            (R) An amount equal to the amount of any federal or

 

 

HB5310- 20 -LRB103 38162 HLH 68295 b

1        State bonus paid to veterans of the Persian Gulf War;
2            (S) An amount, to the extent included in adjusted
3        gross income, equal to the amount of a contribution
4        made in the taxable year on behalf of the taxpayer to a
5        medical care savings account established under the
6        Medical Care Savings Account Act or the Medical Care
7        Savings Account Act of 2000 to the extent the
8        contribution is accepted by the account administrator
9        as provided in that Act;
10            (T) An amount, to the extent included in adjusted
11        gross income, equal to the amount of interest earned
12        in the taxable year on a medical care savings account
13        established under the Medical Care Savings Account Act
14        or the Medical Care Savings Account Act of 2000 on
15        behalf of the taxpayer, other than interest added
16        pursuant to item (D-5) of this paragraph (2);
17            (U) For one taxable year beginning on or after
18        January 1, 1994, an amount equal to the total amount of
19        tax imposed and paid under subsections (a) and (b) of
20        Section 201 of this Act on grant amounts received by
21        the taxpayer under the Nursing Home Grant Assistance
22        Act during the taxpayer's taxable years 1992 and 1993;
23            (V) Beginning with tax years ending on or after
24        December 31, 1995 and ending with tax years ending on
25        or before December 31, 2004, an amount equal to the
26        amount paid by a taxpayer who is a self-employed

 

 

HB5310- 21 -LRB103 38162 HLH 68295 b

1        taxpayer, a partner of a partnership, or a shareholder
2        in a Subchapter S corporation for health insurance or
3        long-term care insurance for that taxpayer or that
4        taxpayer's spouse or dependents, to the extent that
5        the amount paid for that health insurance or long-term
6        care insurance may be deducted under Section 213 of
7        the Internal Revenue Code, has not been deducted on
8        the federal income tax return of the taxpayer, and
9        does not exceed the taxable income attributable to
10        that taxpayer's income, self-employment income, or
11        Subchapter S corporation income; except that no
12        deduction shall be allowed under this item (V) if the
13        taxpayer is eligible to participate in any health
14        insurance or long-term care insurance plan of an
15        employer of the taxpayer or the taxpayer's spouse. The
16        amount of the health insurance and long-term care
17        insurance subtracted under this item (V) shall be
18        determined by multiplying total health insurance and
19        long-term care insurance premiums paid by the taxpayer
20        times a number that represents the fractional
21        percentage of eligible medical expenses under Section
22        213 of the Internal Revenue Code of 1986 not actually
23        deducted on the taxpayer's federal income tax return;
24            (W) For taxable years beginning on or after
25        January 1, 1998, all amounts included in the
26        taxpayer's federal gross income in the taxable year

 

 

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1        from amounts converted from a regular IRA to a Roth
2        IRA. This paragraph is exempt from the provisions of
3        Section 250;
4            (X) For taxable year 1999 and thereafter, an
5        amount equal to the amount of any (i) distributions,
6        to the extent includible in gross income for federal
7        income tax purposes, made to the taxpayer because of
8        his or her status as a victim of persecution for racial
9        or religious reasons by Nazi Germany or any other Axis
10        regime or as an heir of the victim and (ii) items of
11        income, to the extent includible in gross income for
12        federal income tax purposes, attributable to, derived
13        from or in any way related to assets stolen from,
14        hidden from, or otherwise lost to a victim of
15        persecution for racial or religious reasons by Nazi
16        Germany or any other Axis regime immediately prior to,
17        during, and immediately after World War II, including,
18        but not limited to, interest on the proceeds
19        receivable as insurance under policies issued to a
20        victim of persecution for racial or religious reasons
21        by Nazi Germany or any other Axis regime by European
22        insurance companies immediately prior to and during
23        World War II; provided, however, this subtraction from
24        federal adjusted gross income does not apply to assets
25        acquired with such assets or with the proceeds from
26        the sale of such assets; provided, further, this

 

 

HB5310- 23 -LRB103 38162 HLH 68295 b

1        paragraph shall only apply to a taxpayer who was the
2        first recipient of such assets after their recovery
3        and who is a victim of persecution for racial or
4        religious reasons by Nazi Germany or any other Axis
5        regime or as an heir of the victim. The amount of and
6        the eligibility for any public assistance, benefit, or
7        similar entitlement is not affected by the inclusion
8        of items (i) and (ii) of this paragraph in gross income
9        for federal income tax purposes. This paragraph is
10        exempt from the provisions of Section 250;
11            (Y) For taxable years beginning on or after
12        January 1, 2002 and ending on or before December 31,
13        2004, moneys contributed in the taxable year to a
14        College Savings Pool account under Section 16.5 of the
15        State Treasurer Act, except that amounts excluded from
16        gross income under Section 529(c)(3)(C)(i) of the
17        Internal Revenue Code shall not be considered moneys
18        contributed under this subparagraph (Y). For taxable
19        years beginning on or after January 1, 2005, a maximum
20        of $10,000 contributed in the taxable year to (i) a
21        College Savings Pool account under Section 16.5 of the
22        State Treasurer Act or (ii) the Illinois Prepaid
23        Tuition Trust Fund, except that amounts excluded from
24        gross income under Section 529(c)(3)(C)(i) of the
25        Internal Revenue Code shall not be considered moneys
26        contributed under this subparagraph (Y). For purposes

 

 

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1        of this subparagraph, contributions made by an
2        employer on behalf of an employee, or matching
3        contributions made by an employee, shall be treated as
4        made by the employee. This subparagraph (Y) is exempt
5        from the provisions of Section 250;
6            (Z) For taxable years 2001 and thereafter, for the
7        taxable year in which the bonus depreciation deduction
8        is taken on the taxpayer's federal income tax return
9        under subsection (k) of Section 168 of the Internal
10        Revenue Code and for each applicable taxable year
11        thereafter, an amount equal to "x", where:
12                (1) "y" equals the amount of the depreciation
13            deduction taken for the taxable year on the
14            taxpayer's federal income tax return on property
15            for which the bonus depreciation deduction was
16            taken in any year under subsection (k) of Section
17            168 of the Internal Revenue Code, but not
18            including the bonus depreciation deduction;
19                (2) for taxable years ending on or before
20            December 31, 2005, "x" equals "y" multiplied by 30
21            and then divided by 70 (or "y" multiplied by
22            0.429); and
23                (3) for taxable years ending after December
24            31, 2005:
25                    (i) for property on which a bonus
26                depreciation deduction of 30% of the adjusted

 

 

HB5310- 25 -LRB103 38162 HLH 68295 b

1                basis was taken, "x" equals "y" multiplied by
2                30 and then divided by 70 (or "y" multiplied
3                by 0.429);
4                    (ii) for property on which a bonus
5                depreciation deduction of 50% of the adjusted
6                basis was taken, "x" equals "y" multiplied by
7                1.0;
8                    (iii) for property on which a bonus
9                depreciation deduction of 100% of the adjusted
10                basis was taken in a taxable year ending on or
11                after December 31, 2021, "x" equals the
12                depreciation deduction that would be allowed
13                on that property if the taxpayer had made the
14                election under Section 168(k)(7) of the
15                Internal Revenue Code to not claim bonus
16                depreciation on that property; and
17                    (iv) for property on which a bonus
18                depreciation deduction of a percentage other
19                than 30%, 50% or 100% of the adjusted basis
20                was taken in a taxable year ending on or after
21                December 31, 2021, "x" equals "y" multiplied
22                by 100 times the percentage bonus depreciation
23                on the property (that is, 100(bonus%)) and
24                then divided by 100 times 1 minus the
25                percentage bonus depreciation on the property
26                (that is, 100(1-bonus%)).

 

 

HB5310- 26 -LRB103 38162 HLH 68295 b

1            The aggregate amount deducted under this
2        subparagraph in all taxable years for any one piece of
3        property may not exceed the amount of the bonus
4        depreciation deduction taken on that property on the
5        taxpayer's federal income tax return under subsection
6        (k) of Section 168 of the Internal Revenue Code. This
7        subparagraph (Z) is exempt from the provisions of
8        Section 250;
9            (AA) If the taxpayer sells, transfers, abandons,
10        or otherwise disposes of property for which the
11        taxpayer was required in any taxable year to make an
12        addition modification under subparagraph (D-15), then
13        an amount equal to that addition modification.
14            If the taxpayer continues to own property through
15        the last day of the last tax year for which a
16        subtraction is allowed with respect to that property
17        under subparagraph (Z) and for which the taxpayer was
18        required in any taxable year to make an addition
19        modification under subparagraph (D-15), then an amount
20        equal to that addition modification.
21            The taxpayer is allowed to take the deduction
22        under this subparagraph only once with respect to any
23        one piece of property.
24            This subparagraph (AA) is exempt from the
25        provisions of Section 250;
26            (BB) Any amount included in adjusted gross income,

 

 

HB5310- 27 -LRB103 38162 HLH 68295 b

1        other than salary, received by a driver in a
2        ridesharing arrangement using a motor vehicle;
3            (CC) The amount of (i) any interest income (net of
4        the deductions allocable thereto) taken into account
5        for the taxable year with respect to a transaction
6        with a taxpayer that is required to make an addition
7        modification with respect to such transaction under
8        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
9        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
10        the amount of that addition modification, and (ii) any
11        income from intangible property (net of the deductions
12        allocable thereto) taken into account for the taxable
13        year with respect to a transaction with a taxpayer
14        that is required to make an addition modification with
15        respect to such transaction under Section
16        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
17        203(d)(2)(D-8), but not to exceed the amount of that
18        addition modification. This subparagraph (CC) is
19        exempt from the provisions of Section 250;
20            (DD) An amount equal to the interest income taken
21        into account for the taxable year (net of the
22        deductions allocable thereto) with respect to
23        transactions with (i) a foreign person who would be a
24        member of the taxpayer's unitary business group but
25        for the fact that the foreign person's business
26        activity outside the United States is 80% or more of

 

 

HB5310- 28 -LRB103 38162 HLH 68295 b

1        that person's total business activity and (ii) for
2        taxable years ending on or after December 31, 2008, to
3        a person who would be a member of the same unitary
4        business group but for the fact that the person is
5        prohibited under Section 1501(a)(27) from being
6        included in the unitary business group because he or
7        she is ordinarily required to apportion business
8        income under different subsections of Section 304, but
9        not to exceed the addition modification required to be
10        made for the same taxable year under Section
11        203(a)(2)(D-17) for interest paid, accrued, or
12        incurred, directly or indirectly, to the same person.
13        This subparagraph (DD) is exempt from the provisions
14        of Section 250;
15            (EE) An amount equal to the income from intangible
16        property taken into account for the taxable year (net
17        of the deductions allocable thereto) with respect to
18        transactions with (i) a foreign person who would be a
19        member of the taxpayer's unitary business group but
20        for the fact that the foreign person's business
21        activity outside the United States is 80% or more of
22        that person's total business activity and (ii) for
23        taxable years ending on or after December 31, 2008, to
24        a person who would be a member of the same unitary
25        business group but for the fact that the person is
26        prohibited under Section 1501(a)(27) from being

 

 

HB5310- 29 -LRB103 38162 HLH 68295 b

1        included in the unitary business group because he or
2        she is ordinarily required to apportion business
3        income under different subsections of Section 304, but
4        not to exceed the addition modification required to be
5        made for the same taxable year under Section
6        203(a)(2)(D-18) for intangible expenses and costs
7        paid, accrued, or incurred, directly or indirectly, to
8        the same foreign person. This subparagraph (EE) is
9        exempt from the provisions of Section 250;
10            (FF) An amount equal to any amount awarded to the
11        taxpayer during the taxable year by the Court of
12        Claims under subsection (c) of Section 8 of the Court
13        of Claims Act for time unjustly served in a State
14        prison. This subparagraph (FF) is exempt from the
15        provisions of Section 250;
16            (GG) For taxable years ending on or after December
17        31, 2011, in the case of a taxpayer who was required to
18        add back any insurance premiums under Section
19        203(a)(2)(D-19), such taxpayer may elect to subtract
20        that part of a reimbursement received from the
21        insurance company equal to the amount of the expense
22        or loss (including expenses incurred by the insurance
23        company) that would have been taken into account as a
24        deduction for federal income tax purposes if the
25        expense or loss had been uninsured. If a taxpayer
26        makes the election provided for by this subparagraph

 

 

HB5310- 30 -LRB103 38162 HLH 68295 b

1        (GG), the insurer to which the premiums were paid must
2        add back to income the amount subtracted by the
3        taxpayer pursuant to this subparagraph (GG). This
4        subparagraph (GG) is exempt from the provisions of
5        Section 250;
6            (HH) For taxable years beginning on or after
7        January 1, 2018 and prior to January 1, 2028, a maximum
8        of $10,000 contributed in the taxable year to a
9        qualified ABLE account under Section 16.6 of the State
10        Treasurer Act, except that amounts excluded from gross
11        income under Section 529(c)(3)(C)(i) or Section
12        529A(c)(1)(C) of the Internal Revenue Code shall not
13        be considered moneys contributed under this
14        subparagraph (HH). For purposes of this subparagraph
15        (HH), contributions made by an employer on behalf of
16        an employee, or matching contributions made by an
17        employee, shall be treated as made by the employee;
18            (II) For taxable years that begin on or after
19        January 1, 2021 and begin before January 1, 2026, the
20        amount that is included in the taxpayer's federal
21        adjusted gross income pursuant to Section 61 of the
22        Internal Revenue Code as discharge of indebtedness
23        attributable to student loan forgiveness and that is
24        not excluded from the taxpayer's federal adjusted
25        gross income pursuant to paragraph (5) of subsection
26        (f) of Section 108 of the Internal Revenue Code; and

 

 

HB5310- 31 -LRB103 38162 HLH 68295 b

1            (JJ) For taxable years beginning on or after
2        January 1, 2023, for any cannabis establishment
3        operating in this State and licensed under the
4        Cannabis Regulation and Tax Act or any cannabis
5        cultivation center or medical cannabis dispensing
6        organization operating in this State and licensed
7        under the Compassionate Use of Medical Cannabis
8        Program Act, an amount equal to the deductions that
9        were disallowed under Section 280E of the Internal
10        Revenue Code for the taxable year and that would not be
11        added back under this subsection. The provisions of
12        this subparagraph (JJ) are exempt from the provisions
13        of Section 250; .
14            (KK) (JJ) To the extent includible in gross income
15        for federal income tax purposes, any amount awarded or
16        paid to the taxpayer as a result of a judgment or
17        settlement for fertility fraud as provided in Section
18        15 of the Illinois Fertility Fraud Act, donor
19        fertility fraud as provided in Section 20 of the
20        Illinois Fertility Fraud Act, or similar action in
21        another state; and .
22            (LL) For tax years beginning on or after January
23        1, 2025, any amount included in the taxpayer's federal
24        adjusted gross income for the taxable year that is
25        attributable to the conversion of funds from a
26        qualified tuition program established pursuant to

 

 

HB5310- 32 -LRB103 38162 HLH 68295 b

1        Section 529 of the Internal Revenue Code to a Roth IRA.
2        The provisions of this subparagraph (LL) are exempt
3        from the provisions of Section 250.
 
4    (b) Corporations.
5        (1) In general. In the case of a corporation, base
6    income means an amount equal to the taxpayer's taxable
7    income for the taxable year as modified by paragraph (2).
8        (2) Modifications. The taxable income referred to in
9    paragraph (1) shall be modified by adding thereto the sum
10    of the following amounts:
11            (A) An amount equal to all amounts paid or accrued
12        to the taxpayer as interest and all distributions
13        received from regulated investment companies during
14        the taxable year to the extent excluded from gross
15        income in the computation of taxable income;
16            (B) An amount equal to the amount of tax imposed by
17        this Act to the extent deducted from gross income in
18        the computation of taxable income for the taxable
19        year;
20            (C) In the case of a regulated investment company,
21        an amount equal to the excess of (i) the net long-term
22        capital gain for the taxable year, over (ii) the
23        amount of the capital gain dividends designated as
24        such in accordance with Section 852(b)(3)(C) of the
25        Internal Revenue Code and any amount designated under

 

 

HB5310- 33 -LRB103 38162 HLH 68295 b

1        Section 852(b)(3)(D) of the Internal Revenue Code,
2        attributable to the taxable year (this amendatory Act
3        of 1995 (Public Act 89-89) is declarative of existing
4        law and is not a new enactment);
5            (D) The amount of any net operating loss deduction
6        taken in arriving at taxable income, other than a net
7        operating loss carried forward from a taxable year
8        ending prior to December 31, 1986;
9            (E) For taxable years in which a net operating
10        loss carryback or carryforward from a taxable year
11        ending prior to December 31, 1986 is an element of
12        taxable income under paragraph (1) of subsection (e)
13        or subparagraph (E) of paragraph (2) of subsection
14        (e), the amount by which addition modifications other
15        than those provided by this subparagraph (E) exceeded
16        subtraction modifications in such earlier taxable
17        year, with the following limitations applied in the
18        order that they are listed:
19                (i) the addition modification relating to the
20            net operating loss carried back or forward to the
21            taxable year from any taxable year ending prior to
22            December 31, 1986 shall be reduced by the amount
23            of addition modification under this subparagraph
24            (E) which related to that net operating loss and
25            which was taken into account in calculating the
26            base income of an earlier taxable year, and

 

 

HB5310- 34 -LRB103 38162 HLH 68295 b

1                (ii) the addition modification relating to the
2            net operating loss carried back or forward to the
3            taxable year from any taxable year ending prior to
4            December 31, 1986 shall not exceed the amount of
5            such carryback or carryforward;
6            For taxable years in which there is a net
7        operating loss carryback or carryforward from more
8        than one other taxable year ending prior to December
9        31, 1986, the addition modification provided in this
10        subparagraph (E) shall be the sum of the amounts
11        computed independently under the preceding provisions
12        of this subparagraph (E) for each such taxable year;
13            (E-5) For taxable years ending after December 31,
14        1997, an amount equal to any eligible remediation
15        costs that the corporation deducted in computing
16        adjusted gross income and for which the corporation
17        claims a credit under subsection (l) of Section 201;
18            (E-10) For taxable years 2001 and thereafter, an
19        amount equal to the bonus depreciation deduction taken
20        on the taxpayer's federal income tax return for the
21        taxable year under subsection (k) of Section 168 of
22        the Internal Revenue Code;
23            (E-11) If the taxpayer sells, transfers, abandons,
24        or otherwise disposes of property for which the
25        taxpayer was required in any taxable year to make an
26        addition modification under subparagraph (E-10), then

 

 

HB5310- 35 -LRB103 38162 HLH 68295 b

1        an amount equal to the aggregate amount of the
2        deductions taken in all taxable years under
3        subparagraph (T) with respect to that property.
4            If the taxpayer continues to own property through
5        the last day of the last tax year for which a
6        subtraction is allowed with respect to that property
7        under subparagraph (T) and for which the taxpayer was
8        allowed in any taxable year to make a subtraction
9        modification under subparagraph (T), then an amount
10        equal to that subtraction modification.
11            The taxpayer is required to make the addition
12        modification under this subparagraph only once with
13        respect to any one piece of property;
14            (E-12) An amount equal to the amount otherwise
15        allowed as a deduction in computing base income for
16        interest paid, accrued, or incurred, directly or
17        indirectly, (i) for taxable years ending on or after
18        December 31, 2004, to a foreign person who would be a
19        member of the same unitary business group but for the
20        fact the foreign person's business activity outside
21        the United States is 80% or more of the foreign
22        person's total business activity and (ii) for taxable
23        years ending on or after December 31, 2008, to a person
24        who would be a member of the same unitary business
25        group but for the fact that the person is prohibited
26        under Section 1501(a)(27) from being included in the

 

 

HB5310- 36 -LRB103 38162 HLH 68295 b

1        unitary business group because he or she is ordinarily
2        required to apportion business income under different
3        subsections of Section 304. The addition modification
4        required by this subparagraph shall be reduced to the
5        extent that dividends were included in base income of
6        the unitary group for the same taxable year and
7        received by the taxpayer or by a member of the
8        taxpayer's unitary business group (including amounts
9        included in gross income pursuant to Sections 951
10        through 964 of the Internal Revenue Code and amounts
11        included in gross income under Section 78 of the
12        Internal Revenue Code) with respect to the stock of
13        the same person to whom the interest was paid,
14        accrued, or incurred.
15            This paragraph shall not apply to the following:
16                (i) an item of interest paid, accrued, or
17            incurred, directly or indirectly, to 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 interest; or
22                (ii) an item of interest paid, accrued, or
23            incurred, directly or indirectly, to a person if
24            the taxpayer can establish, based on a
25            preponderance of the evidence, both of the
26            following:

 

 

HB5310- 37 -LRB103 38162 HLH 68295 b

1                    (a) the person, during the same taxable
2                year, paid, accrued, or incurred, the interest
3                to a person that is not a related member, and
4                    (b) the transaction giving rise to the
5                interest expense between the taxpayer and the
6                person did not have as a principal purpose the
7                avoidance of Illinois income tax, and is paid
8                pursuant to a contract or agreement that
9                reflects an arm's-length interest rate and
10                terms; or
11                (iii) the taxpayer can establish, based on
12            clear and convincing evidence, that the interest
13            paid, accrued, or incurred relates to a contract
14            or agreement entered into at arm's-length rates
15            and terms and the principal purpose for the
16            payment is not federal or Illinois tax avoidance;
17            or
18                (iv) an item of interest paid, accrued, or
19            incurred, directly or indirectly, to a person if
20            the taxpayer establishes by clear and convincing
21            evidence that the adjustments are unreasonable; or
22            if the taxpayer and the Director agree in writing
23            to the application or use of an alternative method
24            of apportionment under Section 304(f).
25                Nothing in this subsection shall preclude the
26            Director from making any other adjustment

 

 

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1            otherwise allowed under Section 404 of this Act
2            for any tax year beginning after the effective
3            date of this amendment provided such adjustment is
4            made pursuant to regulation adopted by the
5            Department and such regulations provide methods
6            and standards by which the Department will utilize
7            its authority under Section 404 of this Act;
8            (E-13) An amount equal to the amount of intangible
9        expenses and costs otherwise allowed as a deduction in
10        computing base income, and that were paid, accrued, or
11        incurred, directly or indirectly, (i) for taxable
12        years ending on or after December 31, 2004, to a
13        foreign person who would be a member of the same
14        unitary business group but for the fact that the
15        foreign person's business activity outside the United
16        States is 80% or more of that person's total business
17        activity and (ii) for taxable years ending on or after
18        December 31, 2008, to a person who would be a member of
19        the same unitary business group but for the fact that
20        the person is prohibited under Section 1501(a)(27)
21        from being included in the unitary business group
22        because he or she is ordinarily required to apportion
23        business income under different subsections of Section
24        304. The addition modification required by this
25        subparagraph shall be reduced to the extent that
26        dividends were included in base income of the unitary

 

 

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1        group for the same taxable year and received by the
2        taxpayer or by a member of the taxpayer's unitary
3        business group (including amounts included in gross
4        income pursuant to Sections 951 through 964 of the
5        Internal Revenue Code and amounts included in gross
6        income under Section 78 of the Internal Revenue Code)
7        with respect to the stock of the same person to whom
8        the intangible expenses and costs were directly or
9        indirectly paid, incurred, or accrued. The preceding
10        sentence shall not apply to the extent that the same
11        dividends caused a reduction to the addition
12        modification required under Section 203(b)(2)(E-12) of
13        this Act. As used in this subparagraph, the term
14        "intangible expenses and costs" includes (1) expenses,
15        losses, and costs for, or related to, the direct or
16        indirect acquisition, use, maintenance or management,
17        ownership, sale, exchange, or any other disposition of
18        intangible property; (2) losses incurred, directly or
19        indirectly, from factoring transactions or discounting
20        transactions; (3) royalty, patent, technical, and
21        copyright fees; (4) licensing fees; and (5) other
22        similar expenses and costs. For purposes of this
23        subparagraph, "intangible property" includes patents,
24        patent applications, trade names, trademarks, service
25        marks, copyrights, mask works, trade secrets, and
26        similar types of intangible assets.

 

 

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1            This paragraph shall not apply to the following:
2                (i) any item of intangible expenses or costs
3            paid, accrued, or incurred, directly or
4            indirectly, from a transaction with 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 item; or
9                (ii) any item of intangible expense or cost
10            paid, accrued, or incurred, directly or
11            indirectly, if the taxpayer can establish, based
12            on a preponderance of the evidence, both of the
13            following:
14                    (a) the person during the same taxable
15                year paid, accrued, or incurred, the
16                intangible expense or cost to a person that is
17                not a related member, and
18                    (b) the transaction giving rise to the
19                intangible expense or cost between the
20                taxpayer and the person did not have as a
21                principal purpose the avoidance of Illinois
22                income tax, and is paid pursuant to a contract
23                or agreement that reflects arm's-length terms;
24                or
25                (iii) any item of intangible expense or cost
26            paid, accrued, or incurred, directly or

 

 

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1            indirectly, from a transaction with a person if
2            the taxpayer establishes by clear and convincing
3            evidence, that the adjustments are unreasonable;
4            or if the taxpayer and the Director agree in
5            writing to the application or use of an
6            alternative method of apportionment under Section
7            304(f);
8                Nothing in this subsection shall preclude the
9            Director from making any other adjustment
10            otherwise allowed under Section 404 of this Act
11            for any tax year beginning after the effective
12            date of this amendment provided such adjustment is
13            made pursuant to regulation adopted by the
14            Department and such regulations provide methods
15            and standards by which the Department will utilize
16            its authority under Section 404 of this Act;
17            (E-14) For taxable years ending on or after
18        December 31, 2008, an amount equal to the amount of
19        insurance premium expenses and costs otherwise allowed
20        as a deduction in computing base income, and that were
21        paid, accrued, or incurred, directly or indirectly, to
22        a person who would be a member of the same unitary
23        business group but for the fact that the person is
24        prohibited under Section 1501(a)(27) from being
25        included in the unitary business group because he or
26        she is ordinarily required to apportion business

 

 

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1        income under different subsections of Section 304. The
2        addition modification required by this subparagraph
3        shall be reduced to the extent that dividends were
4        included in base income of the unitary group for the
5        same taxable year and received by the taxpayer or by a
6        member of the taxpayer's unitary business group
7        (including amounts included in gross income under
8        Sections 951 through 964 of the Internal Revenue Code
9        and amounts included in gross income under Section 78
10        of the Internal Revenue Code) with respect to the
11        stock of the same person to whom the premiums and costs
12        were directly or indirectly paid, incurred, or
13        accrued. The preceding sentence does not apply to the
14        extent that the same dividends caused a reduction to
15        the addition modification required under Section
16        203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
17        Act;
18            (E-15) For taxable years beginning after December
19        31, 2008, any deduction for dividends paid by a
20        captive real estate investment trust that is allowed
21        to a real estate investment trust under Section
22        857(b)(2)(B) of the Internal Revenue Code for
23        dividends paid;
24            (E-16) An amount equal to the credit allowable to
25        the taxpayer under Section 218(a) of this Act,
26        determined without regard to Section 218(c) of this

 

 

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1        Act;
2            (E-17) For taxable years ending on or after
3        December 31, 2017, an amount equal to the deduction
4        allowed under Section 199 of the Internal Revenue Code
5        for the taxable year;
6            (E-18) for taxable years beginning after December
7        31, 2018, an amount equal to the deduction allowed
8        under Section 250(a)(1)(A) of the Internal Revenue
9        Code for the taxable year;
10            (E-19) for taxable years ending on or after June
11        30, 2021, an amount equal to the deduction allowed
12        under Section 250(a)(1)(B)(i) of the Internal Revenue
13        Code for the taxable year;
14            (E-20) for taxable years ending on or after June
15        30, 2021, an amount equal to the deduction allowed
16        under Sections 243(e) and 245A(a) of the Internal
17        Revenue Code for the taxable year.
18    and by deducting from the total so obtained the sum of the
19    following amounts:
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 any amount included in such
24        total under Section 78 of the Internal Revenue Code;
25            (H) In the case of a regulated investment company,
26        an amount equal to the amount of exempt interest

 

 

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1        dividends as defined in subsection (b)(5) of Section
2        852 of the Internal Revenue Code, paid to shareholders
3        for the taxable year;
4            (I) With the exception of any amounts subtracted
5        under subparagraph (J), an amount equal to the sum of
6        all amounts disallowed as deductions by (i) Sections
7        171(a)(2) and 265(a)(2) and amounts disallowed as
8        interest expense by Section 291(a)(3) of the Internal
9        Revenue Code, and all amounts of expenses allocable to
10        interest and disallowed as deductions by Section
11        265(a)(1) of the Internal Revenue Code; and (ii) for
12        taxable years ending on or after August 13, 1999,
13        Sections 171(a)(2), 265, 280C, 291(a)(3), and
14        832(b)(5)(B)(i) of the Internal Revenue Code, plus,
15        for tax years ending on or after December 31, 2011,
16        amounts disallowed as deductions by Section 45G(e)(3)
17        of the Internal Revenue Code and, for taxable years
18        ending on or after December 31, 2008, any amount
19        included in gross income under Section 87 of the
20        Internal Revenue Code and the policyholders' share of
21        tax-exempt interest of a life insurance company under
22        Section 807(a)(2)(B) of the Internal Revenue Code (in
23        the case of a life insurance company with gross income
24        from a decrease in reserves for the tax year) or
25        Section 807(b)(1)(B) of the Internal Revenue Code (in
26        the case of a life insurance company allowed a

 

 

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1        deduction for an increase in reserves for the tax
2        year); the provisions of this subparagraph are exempt
3        from the provisions of Section 250;
4            (J) An amount equal to all amounts included in
5        such total which are exempt from taxation by this
6        State either by reason of its statutes or Constitution
7        or by reason of the Constitution, treaties or statutes
8        of the United States; provided that, in the case of any
9        statute of this State that exempts income derived from
10        bonds or other obligations from the tax imposed under
11        this Act, the amount exempted shall be the interest
12        net of bond premium amortization;
13            (K) An amount equal to those dividends included in
14        such total which were paid by a corporation which
15        conducts business operations in a River Edge
16        Redevelopment Zone or zones created under the River
17        Edge Redevelopment Zone Act and conducts substantially
18        all of its operations in a River Edge Redevelopment
19        Zone or zones. This subparagraph (K) is exempt from
20        the provisions of Section 250;
21            (L) An amount equal to those dividends included in
22        such total that were paid by a corporation that
23        conducts business operations in a federally designated
24        Foreign Trade Zone or Sub-Zone and that is designated
25        a High Impact Business located in Illinois; provided
26        that dividends eligible for the deduction provided in

 

 

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1        subparagraph (K) of paragraph 2 of this subsection
2        shall not be eligible for the deduction provided under
3        this subparagraph (L);
4            (M) For any taxpayer that is a financial
5        organization within the meaning of Section 304(c) of
6        this Act, an amount included in such total as interest
7        income from a loan or loans made by such taxpayer to a
8        borrower, to the extent that such a loan is secured by
9        property which is eligible for the River Edge
10        Redevelopment Zone Investment Credit. To determine the
11        portion of a loan or loans that is secured by property
12        eligible for a Section 201(f) investment credit to the
13        borrower, the entire principal amount of the loan or
14        loans between the taxpayer and the borrower should be
15        divided into the basis of the Section 201(f)
16        investment credit property which secures the loan or
17        loans, using for this purpose the original basis of
18        such property on the date that it was placed in service
19        in the River Edge Redevelopment Zone. The subtraction
20        modification available to the taxpayer in any year
21        under this subsection shall be that portion of the
22        total interest paid by the borrower with respect to
23        such loan attributable to the eligible property as
24        calculated under the previous sentence. This
25        subparagraph (M) is exempt from the provisions of
26        Section 250;

 

 

HB5310- 47 -LRB103 38162 HLH 68295 b

1            (M-1) For any taxpayer that is a financial
2        organization within the meaning of Section 304(c) of
3        this Act, an amount included in such total as interest
4        income from a loan or loans made by such taxpayer to a
5        borrower, to the extent that such a loan is secured by
6        property which is eligible for the High Impact
7        Business Investment Credit. To determine the portion
8        of a loan or loans that is secured by property eligible
9        for a Section 201(h) investment credit to the
10        borrower, the entire principal amount of the loan or
11        loans between the taxpayer and the borrower should be
12        divided into the basis of the Section 201(h)
13        investment credit property which secures the loan or
14        loans, using for this purpose the original basis of
15        such property on the date that it was placed in service
16        in a federally designated Foreign Trade Zone or
17        Sub-Zone located in Illinois. No taxpayer that is
18        eligible for the deduction provided in subparagraph
19        (M) of paragraph (2) of this subsection shall be
20        eligible for the deduction provided under this
21        subparagraph (M-1). The subtraction modification
22        available to taxpayers in any year under this
23        subsection shall be that portion of the total interest
24        paid by the borrower with respect to such loan
25        attributable to the eligible property as calculated
26        under the previous sentence;

 

 

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1            (N) Two times any contribution made during the
2        taxable year to a designated zone organization to the
3        extent that the contribution (i) qualifies as a
4        charitable contribution under subsection (c) of
5        Section 170 of the Internal Revenue Code and (ii)
6        must, by its terms, be used for a project approved by
7        the Department of Commerce and Economic Opportunity
8        under Section 11 of the Illinois Enterprise Zone Act
9        or under Section 10-10 of the River Edge Redevelopment
10        Zone Act. This subparagraph (N) is exempt from the
11        provisions of Section 250;
12            (O) An amount equal to: (i) 85% for taxable years
13        ending on or before December 31, 1992, or, a
14        percentage equal to the percentage allowable under
15        Section 243(a)(1) of the Internal Revenue Code of 1986
16        for taxable years ending after December 31, 1992, of
17        the amount by which dividends included in taxable
18        income and received from a corporation that is not
19        created or organized under the laws of the United
20        States or any state or political subdivision thereof,
21        including, for taxable years ending on or after
22        December 31, 1988, dividends received or deemed
23        received or paid or deemed paid under Sections 951
24        through 965 of the Internal Revenue Code, exceed the
25        amount of the modification provided under subparagraph
26        (G) of paragraph (2) of this subsection (b) which is

 

 

HB5310- 49 -LRB103 38162 HLH 68295 b

1        related to such dividends, and including, for taxable
2        years ending on or after December 31, 2008, dividends
3        received from a captive real estate investment trust;
4        plus (ii) 100% of the amount by which dividends,
5        included in taxable income and received, including,
6        for taxable years ending on or after December 31,
7        1988, dividends received or deemed received or paid or
8        deemed paid under Sections 951 through 964 of the
9        Internal Revenue Code and including, for taxable years
10        ending on or after December 31, 2008, dividends
11        received from a captive real estate investment trust,
12        from any such corporation specified in clause (i) that
13        would but for the provisions of Section 1504(b)(3) of
14        the Internal Revenue Code be treated as a member of the
15        affiliated group which includes the dividend
16        recipient, exceed the amount of the modification
17        provided under subparagraph (G) of paragraph (2) of
18        this subsection (b) which is related to such
19        dividends. For taxable years ending on or after June
20        30, 2021, (i) for purposes of this subparagraph, the
21        term "dividend" does not include any amount treated as
22        a dividend under Section 1248 of the Internal Revenue
23        Code, and (ii) this subparagraph shall not apply to
24        dividends for which a deduction is allowed under
25        Section 245(a) of the Internal Revenue Code. This
26        subparagraph (O) is exempt from the provisions of

 

 

HB5310- 50 -LRB103 38162 HLH 68295 b

1        Section 250 of this Act;
2            (P) An amount equal to any contribution made to a
3        job training project established pursuant to the Tax
4        Increment Allocation Redevelopment Act;
5            (Q) An amount equal to the amount of the deduction
6        used to compute the federal income tax credit for
7        restoration of substantial amounts held under claim of
8        right for the taxable year pursuant to Section 1341 of
9        the Internal Revenue Code;
10            (R) On and after July 20, 1999, in the case of an
11        attorney-in-fact with respect to whom an interinsurer
12        or a reciprocal insurer has made the election under
13        Section 835 of the Internal Revenue Code, 26 U.S.C.
14        835, an amount equal to the excess, if any, of the
15        amounts paid or incurred by that interinsurer or
16        reciprocal insurer in the taxable year to the
17        attorney-in-fact over the deduction allowed to that
18        interinsurer or reciprocal insurer with respect to the
19        attorney-in-fact under Section 835(b) of the Internal
20        Revenue Code for the taxable year; the provisions of
21        this subparagraph are exempt from the provisions of
22        Section 250;
23            (S) For taxable years ending on or after December
24        31, 1997, in the case of a Subchapter S corporation, an
25        amount equal to all amounts of income allocable to a
26        shareholder subject to the Personal Property Tax

 

 

HB5310- 51 -LRB103 38162 HLH 68295 b

1        Replacement Income Tax imposed by subsections (c) and
2        (d) of Section 201 of this Act, including amounts
3        allocable to organizations exempt from federal income
4        tax by reason of Section 501(a) of the Internal
5        Revenue Code. This subparagraph (S) is exempt from the
6        provisions of Section 250;
7            (T) For taxable years 2001 and thereafter, for the
8        taxable year in which the bonus depreciation deduction
9        is taken on the taxpayer's federal income tax return
10        under subsection (k) of Section 168 of the Internal
11        Revenue Code and for each applicable taxable year
12        thereafter, an amount equal to "x", where:
13                (1) "y" equals the amount of the depreciation
14            deduction taken for the taxable year on the
15            taxpayer's federal income tax return on property
16            for which the bonus depreciation deduction was
17            taken in any year under subsection (k) of Section
18            168 of the Internal Revenue Code, but not
19            including the bonus depreciation deduction;
20                (2) for taxable years ending on or before
21            December 31, 2005, "x" equals "y" multiplied by 30
22            and then divided by 70 (or "y" multiplied by
23            0.429); and
24                (3) for taxable years ending after December
25            31, 2005:
26                    (i) for property on which a bonus

 

 

HB5310- 52 -LRB103 38162 HLH 68295 b

1                depreciation deduction of 30% of the adjusted
2                basis was taken, "x" equals "y" multiplied by
3                30 and then divided by 70 (or "y" multiplied
4                by 0.429);
5                    (ii) for property on which a bonus
6                depreciation deduction of 50% of the adjusted
7                basis was taken, "x" equals "y" multiplied by
8                1.0;
9                    (iii) for property on which a bonus
10                depreciation deduction of 100% of the adjusted
11                basis was taken in a taxable year ending on or
12                after December 31, 2021, "x" equals the
13                depreciation deduction that would be allowed
14                on that property if the taxpayer had made the
15                election under Section 168(k)(7) of the
16                Internal Revenue Code to not claim bonus
17                depreciation on that property; and
18                    (iv) for property on which a bonus
19                depreciation deduction of a percentage other
20                than 30%, 50% or 100% of the adjusted basis
21                was taken in a taxable year ending on or after
22                December 31, 2021, "x" equals "y" multiplied
23                by 100 times the percentage bonus depreciation
24                on the property (that is, 100(bonus%)) and
25                then divided by 100 times 1 minus the
26                percentage bonus depreciation on the property

 

 

HB5310- 53 -LRB103 38162 HLH 68295 b

1                (that is, 100(1-bonus%)).
2            The aggregate amount deducted under this
3        subparagraph in all taxable years for any one piece of
4        property may not exceed the amount of the bonus
5        depreciation deduction taken on that property on the
6        taxpayer's federal income tax return under subsection
7        (k) of Section 168 of the Internal Revenue Code. This
8        subparagraph (T) is exempt from the provisions of
9        Section 250;
10            (U) If the taxpayer sells, transfers, abandons, or
11        otherwise disposes of property for which the taxpayer
12        was required in any taxable year to make an addition
13        modification under subparagraph (E-10), then an amount
14        equal to that addition modification.
15            If the taxpayer continues to own property through
16        the last day of the last tax year for which a
17        subtraction is allowed with respect to that property
18        under subparagraph (T) and for which the taxpayer was
19        required in any taxable year to make an addition
20        modification under subparagraph (E-10), then an amount
21        equal to that addition modification.
22            The taxpayer is allowed to take the deduction
23        under this subparagraph only once with respect to any
24        one piece of property.
25            This subparagraph (U) is exempt from the
26        provisions of Section 250;

 

 

HB5310- 54 -LRB103 38162 HLH 68295 b

1            (V) The amount of: (i) any interest income (net of
2        the deductions allocable thereto) taken into account
3        for the taxable year with respect to a transaction
4        with a taxpayer that is required to make an addition
5        modification with respect to such transaction under
6        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
7        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
8        the amount of such addition modification, (ii) any
9        income from intangible property (net of the deductions
10        allocable thereto) taken into account for the taxable
11        year with respect to a transaction with a taxpayer
12        that is required to make an addition modification with
13        respect to such transaction under Section
14        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
15        203(d)(2)(D-8), but not to exceed the amount of such
16        addition modification, and (iii) any insurance premium
17        income (net of deductions allocable thereto) taken
18        into account for the taxable year with respect to a
19        transaction with a taxpayer that is required to make
20        an addition modification with respect to such
21        transaction under Section 203(a)(2)(D-19), Section
22        203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
23        203(d)(2)(D-9), but not to exceed the amount of that
24        addition modification. This subparagraph (V) is exempt
25        from the provisions of Section 250;
26            (W) An amount equal to the interest income taken

 

 

HB5310- 55 -LRB103 38162 HLH 68295 b

1        into account for the taxable year (net of the
2        deductions allocable thereto) with respect to
3        transactions with (i) a foreign person who would be a
4        member of the taxpayer's unitary business group but
5        for the fact that the foreign person's business
6        activity outside the United States is 80% or more of
7        that person's total business activity and (ii) for
8        taxable years ending on or after December 31, 2008, 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, but
15        not to exceed the addition modification required to be
16        made for the same taxable year under Section
17        203(b)(2)(E-12) for interest paid, accrued, or
18        incurred, directly or indirectly, to the same person.
19        This subparagraph (W) is exempt from the provisions of
20        Section 250;
21            (X) An amount equal to the income from intangible
22        property taken into account for the taxable year (net
23        of the deductions allocable thereto) with respect to
24        transactions with (i) a foreign person who would be a
25        member of the taxpayer's unitary business group but
26        for the fact that the foreign person's business

 

 

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1        activity outside the United States is 80% or more of
2        that person's total business activity and (ii) for
3        taxable years ending on or after December 31, 2008, to
4        a person who would be a member of the same unitary
5        business group but for the fact that the person is
6        prohibited under Section 1501(a)(27) from being
7        included in the unitary business group because he or
8        she is ordinarily required to apportion business
9        income under different subsections of Section 304, but
10        not to exceed the addition modification required to be
11        made for the same taxable year under Section
12        203(b)(2)(E-13) for intangible expenses and costs
13        paid, accrued, or incurred, directly or indirectly, to
14        the same foreign person. This subparagraph (X) is
15        exempt from the provisions of Section 250;
16            (Y) For taxable years ending on or after December
17        31, 2011, in the case of a taxpayer who was required to
18        add back any insurance premiums under Section
19        203(b)(2)(E-14), such taxpayer may elect to subtract
20        that part of a reimbursement received from the
21        insurance company equal to the amount of the expense
22        or loss (including expenses incurred by the insurance
23        company) that would have been taken into account as a
24        deduction for federal income tax purposes if the
25        expense or loss had been uninsured. If a taxpayer
26        makes the election provided for by this subparagraph

 

 

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1        (Y), the insurer to which the premiums were paid must
2        add back to income the amount subtracted by the
3        taxpayer pursuant to this subparagraph (Y). This
4        subparagraph (Y) is exempt from the provisions of
5        Section 250;
6            (Z) The difference between the nondeductible
7        controlled foreign corporation dividends under Section
8        965(e)(3) of the Internal Revenue Code over the
9        taxable income of the taxpayer, computed without
10        regard to Section 965(e)(2)(A) of the Internal Revenue
11        Code, and without regard to any net operating loss
12        deduction. This subparagraph (Z) is exempt from the
13        provisions of Section 250; and
14            (AA) For taxable years beginning on or after
15        January 1, 2023, for any cannabis establishment
16        operating in this State and licensed under the
17        Cannabis Regulation and Tax Act or any cannabis
18        cultivation center or medical cannabis dispensing
19        organization operating in this State and licensed
20        under the Compassionate Use of Medical Cannabis
21        Program Act, an amount equal to the deductions that
22        were disallowed under Section 280E of the Internal
23        Revenue Code for the taxable year and that would not be
24        added back under this subsection. The provisions of
25        this subparagraph (AA) are exempt from the provisions
26        of Section 250.

 

 

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1        (3) Special rule. For purposes of paragraph (2)(A),
2    "gross income" in the case of a life insurance company,
3    for tax years ending on and after December 31, 1994, and
4    prior to December 31, 2011, shall mean the gross
5    investment income for the taxable year and, for tax years
6    ending on or after December 31, 2011, shall mean all
7    amounts included in life insurance gross income under
8    Section 803(a)(3) of the Internal Revenue Code.
 
9    (c) Trusts and estates.
10        (1) In general. In the case of a trust or estate, base
11    income means an amount equal to the taxpayer's taxable
12    income for the taxable year as modified by paragraph (2).
13        (2) Modifications. Subject to the provisions of
14    paragraph (3), the taxable income referred to in paragraph
15    (1) shall be modified by adding thereto the sum of the
16    following amounts:
17            (A) An amount equal to all amounts paid or accrued
18        to the taxpayer as interest or dividends during the
19        taxable year to the extent excluded from gross income
20        in the computation of taxable income;
21            (B) In the case of (i) an estate, $600; (ii) a
22        trust which, under its governing instrument, is
23        required to distribute all of its income currently,
24        $300; and (iii) any other trust, $100, but in each such
25        case, only to the extent such amount was deducted in

 

 

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1        the computation of taxable income;
2            (C) An amount equal to the amount of tax imposed by
3        this Act to the extent deducted from gross income in
4        the computation of taxable income for the taxable
5        year;
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 taxable year, with
18        the following limitations applied in the order that
19        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

 

 

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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            (F) For taxable years ending on or after January
15        1, 1989, an amount equal to the tax deducted pursuant
16        to Section 164 of the Internal Revenue Code if the
17        trust or estate is claiming the same tax for purposes
18        of the Illinois foreign tax credit under Section 601
19        of this Act;
20            (G) 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 taxable income;
24            (G-5) For taxable years ending after December 31,
25        1997, an amount equal to any eligible remediation
26        costs that the trust or estate deducted in computing

 

 

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1        adjusted gross income and for which the trust or
2        estate claims a credit under subsection (l) of Section
3        201;
4            (G-10) For taxable years 2001 and thereafter, an
5        amount equal to the bonus depreciation deduction taken
6        on the taxpayer's federal income tax return for the
7        taxable year under subsection (k) of Section 168 of
8        the Internal Revenue Code; and
9            (G-11) If the taxpayer sells, transfers, abandons,
10        or otherwise disposes of property for which the
11        taxpayer was required in any taxable year to make an
12        addition modification under subparagraph (G-10), then
13        an amount equal to the aggregate amount of the
14        deductions taken in all taxable years under
15        subparagraph (R) with respect to that property.
16            If the taxpayer continues to own property through
17        the last day of the last tax year for which a
18        subtraction is allowed with respect to that property
19        under subparagraph (R) and for which the taxpayer was
20        allowed in any taxable year to make a subtraction
21        modification under subparagraph (R), then an amount
22        equal to that subtraction modification.
23            The taxpayer is required to make the addition
24        modification under this subparagraph only once with
25        respect to any one piece of property;
26            (G-12) An amount equal to the amount otherwise

 

 

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1        allowed as a deduction in computing base income for
2        interest paid, accrued, or incurred, directly or
3        indirectly, (i) for taxable years ending on or after
4        December 31, 2004, to a foreign person who would be a
5        member of the same unitary business group but for the
6        fact that the foreign person's business activity
7        outside the United States is 80% or more of the foreign
8        person's total business activity and (ii) for taxable
9        years ending on or after December 31, 2008, to a person
10        who would be a member of the same unitary business
11        group but for the fact that the person is prohibited
12        under Section 1501(a)(27) from being included in the
13        unitary business group because he or she is ordinarily
14        required to apportion business income under different
15        subsections of Section 304. The addition modification
16        required by this subparagraph shall be reduced to the
17        extent that dividends were included in base income of
18        the unitary group for the same taxable year and
19        received by the taxpayer or by a member of the
20        taxpayer's unitary business group (including amounts
21        included in gross income pursuant to Sections 951
22        through 964 of the Internal Revenue Code and amounts
23        included in gross income under Section 78 of the
24        Internal Revenue Code) with respect to the stock of
25        the same person to whom the interest was paid,
26        accrued, or incurred.

 

 

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1            This paragraph shall not apply to the following:
2                (i) an item of interest paid, accrued, or
3            incurred, directly or indirectly, to a person who
4            is subject in a foreign country or state, other
5            than a state which requires mandatory unitary
6            reporting, to a tax on or measured by net income
7            with respect to such interest; or
8                (ii) an item of interest paid, accrued, or
9            incurred, directly or indirectly, to a person if
10            the taxpayer can establish, based on a
11            preponderance of the evidence, both of the
12            following:
13                    (a) the person, during the same taxable
14                year, paid, accrued, or incurred, the interest
15                to a person that is not a related member, and
16                    (b) the transaction giving rise to the
17                interest expense between the taxpayer and the
18                person did not have as a principal purpose the
19                avoidance of Illinois income tax, and is paid
20                pursuant to a contract or agreement that
21                reflects an arm's-length interest rate and
22                terms; or
23                (iii) the taxpayer can establish, based on
24            clear and convincing evidence, that the interest
25            paid, accrued, or incurred relates to a contract
26            or agreement entered into at arm's-length rates

 

 

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1            and terms and the principal purpose for the
2            payment is not federal or Illinois tax avoidance;
3            or
4                (iv) an item of interest paid, accrued, or
5            incurred, directly or indirectly, to a person if
6            the taxpayer establishes by clear and convincing
7            evidence that the adjustments are unreasonable; or
8            if the taxpayer and the Director agree in writing
9            to the application or use of an alternative method
10            of apportionment under Section 304(f).
11                Nothing in this subsection shall preclude the
12            Director from making any other adjustment
13            otherwise allowed under Section 404 of this Act
14            for any tax year beginning after the effective
15            date of this amendment provided such adjustment is
16            made pursuant to regulation adopted by the
17            Department and such regulations provide methods
18            and standards by which the Department will utilize
19            its authority under Section 404 of this Act;
20            (G-13) An amount equal to the amount of intangible
21        expenses and costs otherwise allowed as a deduction in
22        computing base income, and that were paid, accrued, or
23        incurred, directly or indirectly, (i) for taxable
24        years ending on or after December 31, 2004, to a
25        foreign person who would be a member of the same
26        unitary business group but for the fact that the

 

 

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1        foreign person's business activity outside the United
2        States is 80% or more of that person's total business
3        activity and (ii) for taxable years ending on or after
4        December 31, 2008, to a person who would be a member of
5        the same unitary business group but for the fact that
6        the person is prohibited under Section 1501(a)(27)
7        from being included in the unitary business group
8        because he or she is ordinarily required to apportion
9        business income under different subsections of Section
10        304. The addition modification required by this
11        subparagraph shall be reduced to the extent that
12        dividends were included in base income of the unitary
13        group for the same taxable year and received by the
14        taxpayer or by a member of the taxpayer's unitary
15        business group (including amounts included in gross
16        income pursuant to Sections 951 through 964 of the
17        Internal Revenue Code and amounts included in gross
18        income under Section 78 of the Internal Revenue Code)
19        with respect to the stock of the same person to whom
20        the intangible expenses and costs were directly or
21        indirectly paid, incurred, or accrued. The preceding
22        sentence shall not apply to the extent that the same
23        dividends caused a reduction to the addition
24        modification required under Section 203(c)(2)(G-12) of
25        this Act. As used in this subparagraph, the term
26        "intangible expenses and costs" includes: (1)

 

 

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1        expenses, losses, and costs for or related to the
2        direct or indirect acquisition, use, maintenance or
3        management, ownership, sale, exchange, or any other
4        disposition of intangible property; (2) losses
5        incurred, directly or indirectly, from factoring
6        transactions or discounting transactions; (3) royalty,
7        patent, technical, and copyright fees; (4) licensing
8        fees; and (5) other similar expenses and costs. For
9        purposes of this subparagraph, "intangible property"
10        includes patents, patent applications, trade names,
11        trademarks, service marks, copyrights, mask works,
12        trade secrets, and similar types of intangible assets.
13            This paragraph shall not apply to the following:
14                (i) any item of intangible expenses or costs
15            paid, accrued, or incurred, directly or
16            indirectly, from a transaction with a person who
17            is subject in a foreign country or state, other
18            than a state which requires mandatory unitary
19            reporting, to a tax on or measured by net income
20            with respect to such item; or
21                (ii) any item of intangible expense or cost
22            paid, accrued, or incurred, directly or
23            indirectly, if the taxpayer can establish, based
24            on a preponderance of the evidence, both of the
25            following:
26                    (a) the person during the same taxable

 

 

HB5310- 67 -LRB103 38162 HLH 68295 b

1                year paid, accrued, or incurred, the
2                intangible expense or cost to a person that is
3                not a related member, and
4                    (b) the transaction giving rise to the
5                intangible expense or cost between the
6                taxpayer and the person did not have as a
7                principal purpose the avoidance of Illinois
8                income tax, and is paid pursuant to a contract
9                or agreement that reflects arm's-length terms;
10                or
11                (iii) any item of intangible expense or cost
12            paid, accrued, or incurred, directly or
13            indirectly, from a transaction with a person if
14            the taxpayer establishes by clear and convincing
15            evidence, that the adjustments are unreasonable;
16            or if the taxpayer and the Director agree in
17            writing to the application or use of an
18            alternative method of apportionment under Section
19            304(f);
20                Nothing in this subsection shall preclude the
21            Director from making any other adjustment
22            otherwise allowed under Section 404 of this Act
23            for any tax year beginning after the effective
24            date of this amendment provided such adjustment is
25            made pursuant to regulation adopted by the
26            Department and such regulations provide methods

 

 

HB5310- 68 -LRB103 38162 HLH 68295 b

1            and standards by which the Department will utilize
2            its authority under Section 404 of this Act;
3            (G-14) For taxable years ending on or after
4        December 31, 2008, an amount equal to the amount of
5        insurance premium expenses and costs otherwise allowed
6        as a deduction in computing base income, and that were
7        paid, accrued, or incurred, directly or indirectly, to
8        a person who would be a member of the same unitary
9        business group but for the fact that the person is
10        prohibited under Section 1501(a)(27) from being
11        included in the unitary business group because he or
12        she is ordinarily required to apportion business
13        income under different subsections of Section 304. The
14        addition modification required by this subparagraph
15        shall be reduced to the extent that dividends were
16        included in base income of the unitary group for the
17        same taxable year and received by the taxpayer or by a
18        member of the taxpayer's unitary business group
19        (including amounts included in gross income under
20        Sections 951 through 964 of the Internal Revenue Code
21        and amounts included in gross income under Section 78
22        of the Internal Revenue Code) with respect to the
23        stock of the same person to whom the premiums and costs
24        were directly or indirectly paid, incurred, or
25        accrued. The preceding sentence does not apply to the
26        extent that the same dividends caused a reduction to

 

 

HB5310- 69 -LRB103 38162 HLH 68295 b

1        the addition modification required under Section
2        203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
3        Act;
4            (G-15) An amount equal to the credit allowable to
5        the taxpayer under Section 218(a) of this Act,
6        determined without regard to Section 218(c) of this
7        Act;
8            (G-16) For taxable years ending on or after
9        December 31, 2017, an amount equal to the deduction
10        allowed under Section 199 of the Internal Revenue Code
11        for the taxable year;
12    and by deducting from the total so obtained the sum of the
13    following amounts:
14            (H) An amount equal to all amounts included in
15        such total pursuant to the provisions of Sections
16        402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
17        of the Internal Revenue Code or included in such total
18        as distributions under the provisions of any
19        retirement or disability plan for employees of any
20        governmental agency or unit, or retirement payments to
21        retired partners, which payments are excluded in
22        computing net earnings from self employment by Section
23        1402 of the Internal Revenue Code and regulations
24        adopted pursuant thereto;
25            (I) The valuation limitation amount;
26            (J) An amount equal to the amount of any tax

 

 

HB5310- 70 -LRB103 38162 HLH 68295 b

1        imposed by this Act which was refunded to the taxpayer
2        and included in such total for the taxable year;
3            (K) An amount equal to all amounts included in
4        taxable income as modified by subparagraphs (A), (B),
5        (C), (D), (E), (F) and (G) which are exempt from
6        taxation by this State either by reason of its
7        statutes or Constitution or by reason of the
8        Constitution, treaties or statutes of the United
9        States; provided that, in the case of any statute of
10        this State that exempts income derived from bonds or
11        other obligations from the tax imposed under this Act,
12        the amount exempted shall be the interest net of bond
13        premium amortization;
14            (L) With the exception of any amounts subtracted
15        under subparagraph (K), an amount equal to the sum of
16        all amounts disallowed as deductions by (i) Sections
17        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
18        and all amounts of expenses allocable to interest and
19        disallowed as deductions by Section 265(a)(1) of the
20        Internal Revenue Code; and (ii) for taxable years
21        ending on or after August 13, 1999, Sections
22        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
23        Internal Revenue Code, plus, (iii) for taxable years
24        ending on or after December 31, 2011, Section
25        45G(e)(3) of the Internal Revenue Code and, for
26        taxable years ending on or after December 31, 2008,

 

 

HB5310- 71 -LRB103 38162 HLH 68295 b

1        any amount included in gross income under Section 87
2        of the Internal Revenue Code; the provisions of this
3        subparagraph are exempt from the provisions of Section
4        250;
5            (M) An amount equal to those dividends included in
6        such total which were paid by a corporation which
7        conducts business operations in a River Edge
8        Redevelopment Zone or zones created under the River
9        Edge Redevelopment Zone Act and conducts substantially
10        all of its operations in a River Edge Redevelopment
11        Zone or zones. This subparagraph (M) is exempt from
12        the provisions of Section 250;
13            (N) An amount equal to any contribution made to a
14        job training project established pursuant to the Tax
15        Increment Allocation Redevelopment Act;
16            (O) An amount equal to those dividends included in
17        such total that were paid by a corporation that
18        conducts business operations in a federally designated
19        Foreign Trade Zone or Sub-Zone and that is designated
20        a High Impact Business located in Illinois; provided
21        that dividends eligible for the deduction provided in
22        subparagraph (M) of paragraph (2) of this subsection
23        shall not be eligible for the deduction provided under
24        this subparagraph (O);
25            (P) An amount equal to the amount of the deduction
26        used to compute the federal income tax credit for

 

 

HB5310- 72 -LRB103 38162 HLH 68295 b

1        restoration of substantial amounts held under claim of
2        right for the taxable year pursuant to Section 1341 of
3        the Internal Revenue Code;
4            (Q) For taxable year 1999 and thereafter, an
5        amount equal to the amount of any (i) distributions,
6        to the extent includible in gross income for federal
7        income tax purposes, made to the taxpayer because of
8        his or her status as a victim of persecution for racial
9        or religious reasons by Nazi Germany or any other Axis
10        regime or as an heir of the victim and (ii) items of
11        income, to the extent includible in gross income for
12        federal income tax purposes, attributable to, derived
13        from or in any way related to assets stolen from,
14        hidden from, or otherwise lost to a victim of
15        persecution for racial or religious reasons by Nazi
16        Germany or any other Axis regime immediately prior to,
17        during, and immediately after World War II, including,
18        but not limited to, interest on the proceeds
19        receivable as insurance under policies issued to a
20        victim of persecution for racial or religious reasons
21        by Nazi Germany or any other Axis regime by European
22        insurance companies immediately prior to and during
23        World War II; provided, however, this subtraction from
24        federal adjusted gross income does not apply to assets
25        acquired with such assets or with the proceeds from
26        the sale of such assets; provided, further, this

 

 

HB5310- 73 -LRB103 38162 HLH 68295 b

1        paragraph shall only apply to a taxpayer who was the
2        first recipient of such assets after their recovery
3        and who is a victim of persecution for racial or
4        religious reasons by Nazi Germany or any other Axis
5        regime or as an heir of the victim. The amount of and
6        the eligibility for any public assistance, benefit, or
7        similar entitlement is not affected by the inclusion
8        of items (i) and (ii) of this paragraph in gross income
9        for federal income tax purposes. This paragraph is
10        exempt from the provisions of Section 250;
11            (R) For taxable years 2001 and thereafter, for the
12        taxable year in which the bonus depreciation deduction
13        is taken on the taxpayer's federal income tax return
14        under subsection (k) of Section 168 of the Internal
15        Revenue Code and for each applicable taxable year
16        thereafter, an amount equal to "x", where:
17                (1) "y" equals the amount of the depreciation
18            deduction taken for the taxable year on the
19            taxpayer's federal income tax return on property
20            for which the bonus depreciation deduction was
21            taken in any year under subsection (k) of Section
22            168 of the Internal Revenue Code, but not
23            including the bonus depreciation deduction;
24                (2) for taxable years ending on or before
25            December 31, 2005, "x" equals "y" multiplied by 30
26            and then divided by 70 (or "y" multiplied by

 

 

HB5310- 74 -LRB103 38162 HLH 68295 b

1            0.429); and
2                (3) for taxable years ending after December
3            31, 2005:
4                    (i) for property on which a bonus
5                depreciation deduction of 30% of the adjusted
6                basis was taken, "x" equals "y" multiplied by
7                30 and then divided by 70 (or "y" multiplied
8                by 0.429);
9                    (ii) for property on which a bonus
10                depreciation deduction of 50% of the adjusted
11                basis was taken, "x" equals "y" multiplied by
12                1.0;
13                    (iii) for property on which a bonus
14                depreciation deduction of 100% of the adjusted
15                basis was taken in a taxable year ending on or
16                after December 31, 2021, "x" equals the
17                depreciation deduction that would be allowed
18                on that property if the taxpayer had made the
19                election under Section 168(k)(7) of the
20                Internal Revenue Code to not claim bonus
21                depreciation on that property; and
22                    (iv) for property on which a bonus
23                depreciation deduction of a percentage other
24                than 30%, 50% or 100% of the adjusted basis
25                was taken in a taxable year ending on or after
26                December 31, 2021, "x" equals "y" multiplied

 

 

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1                by 100 times the percentage bonus depreciation
2                on the property (that is, 100(bonus%)) and
3                then divided by 100 times 1 minus the
4                percentage bonus depreciation on the property
5                (that is, 100(1-bonus%)).
6            The aggregate amount deducted under this
7        subparagraph in all taxable years for any one piece of
8        property may not exceed the amount of the bonus
9        depreciation deduction taken on that property on the
10        taxpayer's federal income tax return under subsection
11        (k) of Section 168 of the Internal Revenue Code. This
12        subparagraph (R) is exempt from the provisions of
13        Section 250;
14            (S) If the taxpayer sells, transfers, abandons, or
15        otherwise disposes of property for which the taxpayer
16        was required in any taxable year to make an addition
17        modification under subparagraph (G-10), then an amount
18        equal to that addition modification.
19            If the taxpayer continues to own property through
20        the last day of the last tax year for which a
21        subtraction is allowed with respect to that property
22        under subparagraph (R) and for which the taxpayer was
23        required in any taxable year to make an addition
24        modification under subparagraph (G-10), then an amount
25        equal to that addition modification.
26            The taxpayer is allowed to take the deduction

 

 

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1        under this subparagraph only once with respect to any
2        one piece of property.
3            This subparagraph (S) is exempt from the
4        provisions of Section 250;
5            (T) The amount of (i) any interest income (net of
6        the deductions allocable thereto) taken into account
7        for the taxable year with respect to a transaction
8        with a taxpayer that is required to make an addition
9        modification with respect to such transaction under
10        Section 203(a)(2)(D-17), 203(b)(2)(E-12),
11        203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
12        the amount of such addition modification and (ii) any
13        income from intangible property (net of the deductions
14        allocable thereto) taken into account for the taxable
15        year with respect to a transaction with a taxpayer
16        that is required to make an addition modification with
17        respect to such transaction under Section
18        203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
19        203(d)(2)(D-8), but not to exceed the amount of such
20        addition modification. This subparagraph (T) is exempt
21        from the provisions of Section 250;
22            (U) An amount equal to the interest income taken
23        into account for the taxable year (net of the
24        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

 

 

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1        for the fact the foreign person's business activity
2        outside the United States is 80% or more of that
3        person's total business activity and (ii) for taxable
4        years ending on or after December 31, 2008, to a person
5        who would be a member of the same unitary business
6        group but for the fact that the person is prohibited
7        under Section 1501(a)(27) from being included in the
8        unitary business group because he or she is ordinarily
9        required to apportion business income under different
10        subsections of Section 304, but not to exceed the
11        addition modification required to be made for the same
12        taxable year under Section 203(c)(2)(G-12) for
13        interest paid, accrued, or incurred, directly or
14        indirectly, to the same person. This subparagraph (U)
15        is exempt from the provisions of Section 250;
16            (V) An amount equal to the income from intangible
17        property taken into account for the taxable year (net
18        of the deductions allocable thereto) with respect to
19        transactions with (i) a foreign person who would be a
20        member of the taxpayer's unitary business group but
21        for the fact that the foreign person's business
22        activity outside the United States is 80% or more of
23        that person's total business activity and (ii) for
24        taxable years ending on or after December 31, 2008, to
25        a person who would be a member of the same unitary
26        business group but for the fact that the person is

 

 

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1        prohibited under Section 1501(a)(27) from being
2        included in the unitary business group because he or
3        she is ordinarily required to apportion business
4        income under different subsections of Section 304, but
5        not to exceed the addition modification required to be
6        made for the same taxable year under Section
7        203(c)(2)(G-13) for intangible expenses and costs
8        paid, accrued, or incurred, directly or indirectly, to
9        the same foreign person. This subparagraph (V) is
10        exempt from the provisions of Section 250;
11            (W) in the case of an estate, an amount equal to
12        all amounts included in such total pursuant to the
13        provisions of Section 111 of the Internal Revenue Code
14        as a recovery of items previously deducted by the
15        decedent from adjusted gross income in the computation
16        of taxable income. This subparagraph (W) is exempt
17        from Section 250;
18            (X) an amount equal to the refund included in such
19        total of any tax deducted for federal income tax
20        purposes, to the extent that deduction was added back
21        under subparagraph (F). This subparagraph (X) is
22        exempt from the provisions of Section 250;
23            (Y) For taxable years ending on or after December
24        31, 2011, in the case of a taxpayer who was required to
25        add back any insurance premiums under Section
26        203(c)(2)(G-14), such taxpayer may elect to subtract

 

 

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1        that part of a reimbursement received from the
2        insurance company equal to the amount of the expense
3        or loss (including expenses incurred by the insurance
4        company) that would have been taken into account as a
5        deduction for federal income tax purposes if the
6        expense or loss had been uninsured. If a taxpayer
7        makes the election provided for by this subparagraph
8        (Y), the insurer to which the premiums were paid must
9        add back to income the amount subtracted by the
10        taxpayer pursuant to this subparagraph (Y). This
11        subparagraph (Y) is exempt from the provisions of
12        Section 250;
13            (Z) For taxable years beginning after December 31,
14        2018 and before January 1, 2026, the amount of excess
15        business loss of the taxpayer disallowed as a
16        deduction by Section 461(l)(1)(B) of the Internal
17        Revenue Code; and
18            (AA) For taxable years beginning on or after
19        January 1, 2023, for any cannabis establishment
20        operating in this State and licensed under the
21        Cannabis Regulation and Tax Act or any cannabis
22        cultivation center or medical cannabis dispensing
23        organization operating in this State and licensed
24        under the Compassionate Use of Medical Cannabis
25        Program Act, an amount equal to the deductions that
26        were disallowed under Section 280E of the Internal

 

 

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1        Revenue Code for the taxable year and that would not be
2        added back under this subsection. The provisions of
3        this subparagraph (AA) are exempt from the provisions
4        of Section 250.
5        (3) Limitation. The amount of any modification
6    otherwise required under this subsection shall, under
7    regulations prescribed by the Department, be adjusted by
8    any amounts included therein which were properly paid,
9    credited, or required to be distributed, or permanently
10    set aside for charitable purposes pursuant to Internal
11    Revenue Code Section 642(c) during the taxable year.
 
12    (d) Partnerships.
13        (1) In general. In the case of a partnership, base
14    income means an amount equal to the taxpayer's taxable
15    income for the taxable year as modified by paragraph (2).
16        (2) Modifications. The taxable income referred to in
17    paragraph (1) shall be modified by adding thereto the sum
18    of the following amounts:
19            (A) An amount equal to all amounts paid or accrued
20        to the taxpayer as interest or dividends during the
21        taxable year to the extent excluded from gross income
22        in the computation of taxable income;
23            (B) An amount equal to the amount of tax imposed by
24        this Act to the extent deducted from gross income for
25        the taxable year;

 

 

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1            (C) The amount of deductions allowed to the
2        partnership pursuant to Section 707 (c) of the
3        Internal Revenue Code in calculating its taxable
4        income;
5            (D) An amount equal to the amount of the capital
6        gain deduction allowable under the Internal Revenue
7        Code, to the extent deducted from gross income in the
8        computation of taxable income;
9            (D-5) For taxable years 2001 and thereafter, an
10        amount equal to the bonus depreciation deduction taken
11        on the taxpayer's federal income tax return for the
12        taxable year under subsection (k) of Section 168 of
13        the Internal Revenue Code;
14            (D-6) If the taxpayer sells, transfers, abandons,
15        or otherwise disposes of property for which the
16        taxpayer was required in any taxable year to make an
17        addition modification under subparagraph (D-5), then
18        an amount equal to the aggregate amount of the
19        deductions taken in all taxable years under
20        subparagraph (O) with respect to that property.
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        allowed in any taxable year to make a subtraction
26        modification under subparagraph (O), then an amount

 

 

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1        equal to that subtraction modification.
2            The taxpayer is required to make the addition
3        modification under this subparagraph only once with
4        respect to any one piece of property;
5            (D-7) An amount equal to the amount otherwise
6        allowed as a deduction in computing base income for
7        interest paid, accrued, or incurred, directly or
8        indirectly, (i) for taxable years ending on or after
9        December 31, 2004, to a foreign person who would be a
10        member of the same unitary business group but for the
11        fact the foreign person's business activity outside
12        the United States is 80% or more of the foreign
13        person's total business activity and (ii) for taxable
14        years ending on or after December 31, 2008, to a person
15        who would be a member of the same unitary business
16        group but for the fact that the person is prohibited
17        under Section 1501(a)(27) from being included in the
18        unitary business group because he or she is ordinarily
19        required to apportion business income under different
20        subsections of Section 304. The addition modification
21        required by this subparagraph shall be reduced to the
22        extent that dividends were included in base income of
23        the unitary group for the same taxable year and
24        received by the taxpayer or by a member of the
25        taxpayer's unitary business group (including amounts
26        included in gross income pursuant to Sections 951

 

 

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1        through 964 of the Internal Revenue Code and amounts
2        included in gross income under Section 78 of the
3        Internal Revenue Code) with respect to the stock of
4        the same person to whom the interest was paid,
5        accrued, or incurred.
6            This paragraph shall not apply to the following:
7                (i) an item of interest paid, accrued, or
8            incurred, directly or indirectly, to a person who
9            is subject in a foreign country or state, other
10            than a state which requires mandatory unitary
11            reporting, to a tax on or measured by net income
12            with respect to such interest; or
13                (ii) an item of interest paid, accrued, or
14            incurred, directly or indirectly, to a person if
15            the taxpayer can establish, based on a
16            preponderance of the evidence, both of the
17            following:
18                    (a) the person, during the same taxable
19                year, paid, accrued, or incurred, the interest
20                to a person that is not a related member, and
21                    (b) the transaction giving rise to the
22                interest expense between the taxpayer and the
23                person did not have as a principal purpose the
24                avoidance of Illinois income tax, and is paid
25                pursuant to a contract or agreement that
26                reflects an arm's-length interest rate and

 

 

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1                terms; or
2                (iii) the taxpayer can establish, based on
3            clear and convincing evidence, that the interest
4            paid, accrued, or incurred relates to a contract
5            or agreement entered into at arm's-length rates
6            and terms and the principal purpose for the
7            payment is not federal or Illinois tax avoidance;
8            or
9                (iv) an item of interest paid, accrued, or
10            incurred, directly or indirectly, to a person if
11            the taxpayer establishes by clear and convincing
12            evidence that the adjustments are unreasonable; or
13            if the taxpayer and the Director agree in writing
14            to the application or use of an alternative method
15            of apportionment under Section 304(f).
16                Nothing in this subsection shall preclude the
17            Director from making any other adjustment
18            otherwise allowed under Section 404 of this Act
19            for any tax year beginning after the effective
20            date of this amendment provided such adjustment is
21            made pursuant to regulation adopted by the
22            Department and such regulations provide methods
23            and standards by which the Department will utilize
24            its authority under Section 404 of this Act; and
25            (D-8) An amount equal to the amount of intangible
26        expenses and costs otherwise allowed as a deduction in

 

 

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1        computing base income, and that were paid, accrued, or
2        incurred, directly or indirectly, (i) for taxable
3        years ending on or after December 31, 2004, to a
4        foreign person who would be a member of the same
5        unitary business group but for the fact that the
6        foreign person's business activity outside the United
7        States is 80% or more of that person's total business
8        activity and (ii) for taxable years ending on or after
9        December 31, 2008, to a person who would be a member of
10        the same unitary business group but for the fact that
11        the person is prohibited under Section 1501(a)(27)
12        from being included in the unitary business group
13        because he or she is ordinarily required to apportion
14        business income under different subsections of Section
15        304. The addition modification required by this
16        subparagraph shall be reduced to the extent that
17        dividends were included in base income of the unitary
18        group for the same taxable year and received by the
19        taxpayer or by a member of the taxpayer's unitary
20        business group (including amounts included in gross
21        income pursuant to Sections 951 through 964 of the
22        Internal Revenue Code and amounts included in gross
23        income under Section 78 of the Internal Revenue Code)
24        with respect to the stock of the same person to whom
25        the intangible expenses and costs were directly or
26        indirectly paid, incurred or accrued. The preceding

 

 

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1        sentence shall not apply to the extent that the same
2        dividends caused a reduction to the addition
3        modification required under Section 203(d)(2)(D-7) of
4        this Act. As used in this subparagraph, the term
5        "intangible expenses and costs" includes (1) expenses,
6        losses, and costs for, or related to, the direct or
7        indirect acquisition, use, maintenance or management,
8        ownership, sale, exchange, or any other disposition of
9        intangible property; (2) losses incurred, directly or
10        indirectly, from factoring transactions or discounting
11        transactions; (3) royalty, patent, technical, and
12        copyright fees; (4) licensing fees; and (5) other
13        similar expenses and costs. For purposes of this
14        subparagraph, "intangible property" includes patents,
15        patent applications, trade names, trademarks, service
16        marks, copyrights, mask works, trade secrets, and
17        similar types of intangible assets;
18            This paragraph shall not apply to the following:
19                (i) any item of intangible expenses or costs
20            paid, accrued, or incurred, directly or
21            indirectly, from a transaction with a person who
22            is subject in a foreign country or state, other
23            than a state which requires mandatory unitary
24            reporting, to a tax on or measured by net income
25            with respect to such item; or
26                (ii) any item of intangible expense or cost

 

 

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1            paid, accrued, or incurred, directly or
2            indirectly, if the taxpayer can establish, based
3            on a preponderance of the evidence, both of the
4            following:
5                    (a) the person during the same taxable
6                year paid, accrued, or incurred, the
7                intangible expense or cost to a person that is
8                not a related member, and
9                    (b) the transaction giving rise to the
10                intangible expense or cost between the
11                taxpayer and the person did not have as a
12                principal purpose the avoidance of Illinois
13                income tax, and is paid pursuant to a contract
14                or agreement that reflects arm's-length terms;
15                or
16                (iii) any item of intangible expense or cost
17            paid, accrued, or incurred, directly or
18            indirectly, from a transaction with a person if
19            the taxpayer establishes by clear and convincing
20            evidence, that the adjustments are unreasonable;
21            or if the taxpayer and the Director agree in
22            writing to the application or use of an
23            alternative method of apportionment under Section
24            304(f);
25                Nothing in this subsection shall preclude the
26            Director from making any other adjustment

 

 

HB5310- 88 -LRB103 38162 HLH 68295 b

1            otherwise allowed under Section 404 of this Act
2            for any tax year beginning after the effective
3            date of this amendment provided such adjustment is
4            made pursuant to regulation adopted by the
5            Department and such regulations provide methods
6            and standards by which the Department will utilize
7            its authority under Section 404 of this Act;
8            (D-9) For taxable years ending on or after
9        December 31, 2008, an amount equal to the amount of
10        insurance premium expenses and costs otherwise allowed
11        as a deduction in computing base income, and that were
12        paid, accrued, or incurred, directly or indirectly, to
13        a person who would be a member of the same unitary
14        business group but for the fact that the person is
15        prohibited under Section 1501(a)(27) from being
16        included in the unitary business group because he or
17        she is ordinarily required to apportion business
18        income under different subsections of Section 304. The
19        addition modification required by this subparagraph
20        shall be reduced to the extent that dividends were
21        included in base income of the unitary group for the
22        same taxable year and received by the taxpayer or by a
23        member of the taxpayer's unitary business group
24        (including amounts included in gross income under
25        Sections 951 through 964 of the Internal Revenue Code
26        and amounts included in gross income under Section 78

 

 

HB5310- 89 -LRB103 38162 HLH 68295 b

1        of the Internal Revenue Code) with respect to the
2        stock of the same person to whom the premiums and costs
3        were directly or indirectly paid, incurred, or
4        accrued. The preceding sentence does not apply to the
5        extent that the same dividends caused a reduction to
6        the addition modification required under Section
7        203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
8            (D-10) An amount equal to the credit allowable to
9        the taxpayer under Section 218(a) of this Act,
10        determined without regard to Section 218(c) of this
11        Act;
12            (D-11) For taxable years ending on or after
13        December 31, 2017, an amount equal to the deduction
14        allowed under Section 199 of the Internal Revenue Code
15        for the taxable year;
16    and by deducting from the total so obtained the following
17    amounts:
18            (E) The valuation limitation amount;
19            (F) An amount equal to the amount of any tax
20        imposed by this Act which was refunded to the taxpayer
21        and included in such total for the taxable year;
22            (G) An amount equal to all amounts included in
23        taxable income as modified by subparagraphs (A), (B),
24        (C) and (D) which are exempt from taxation by this
25        State either by reason of its statutes or Constitution
26        or by reason of the Constitution, treaties or statutes

 

 

HB5310- 90 -LRB103 38162 HLH 68295 b

1        of the United States; provided that, in the case of any
2        statute of this State that exempts income derived from
3        bonds or other obligations from the tax imposed under
4        this Act, the amount exempted shall be the interest
5        net of bond premium amortization;
6            (H) Any income of the partnership which
7        constitutes personal service income as defined in
8        Section 1348(b)(1) of the Internal Revenue Code (as in
9        effect December 31, 1981) or a reasonable allowance
10        for compensation paid or accrued for services rendered
11        by partners to the partnership, whichever is greater;
12        this subparagraph (H) is exempt from the provisions of
13        Section 250;
14            (I) An amount equal to all amounts of income
15        distributable to an entity subject to the Personal
16        Property Tax Replacement Income Tax imposed by
17        subsections (c) and (d) of Section 201 of this Act
18        including amounts distributable to organizations
19        exempt from federal income tax by reason of Section
20        501(a) of the Internal Revenue Code; this subparagraph
21        (I) is exempt from the provisions of Section 250;
22            (J) With the exception of any amounts subtracted
23        under subparagraph (G), an amount equal to the sum of
24        all amounts disallowed as deductions by (i) Sections
25        171(a)(2) and 265(a)(2) of the Internal Revenue Code,
26        and all amounts of expenses allocable to interest and

 

 

HB5310- 91 -LRB103 38162 HLH 68295 b

1        disallowed as deductions by Section 265(a)(1) of the
2        Internal Revenue Code; and (ii) for taxable years
3        ending on or after August 13, 1999, Sections
4        171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
5        Internal Revenue Code, plus, (iii) for taxable years
6        ending on or after December 31, 2011, Section
7        45G(e)(3) of the Internal Revenue Code and, for
8        taxable years ending on or after December 31, 2008,
9        any amount included in gross income under Section 87
10        of the Internal Revenue Code; the provisions of this
11        subparagraph are exempt from the provisions of Section
12        250;
13            (K) An amount equal to those dividends included in
14        such total which were paid by a corporation which
15        conducts business operations in a River Edge
16        Redevelopment Zone or zones created under the River
17        Edge Redevelopment Zone Act and conducts substantially
18        all of its operations from a River Edge Redevelopment
19        Zone or zones. This subparagraph (K) is exempt from
20        the provisions of Section 250;
21            (L) An amount equal to any contribution made to a
22        job training project established pursuant to the Real
23        Property Tax Increment Allocation Redevelopment Act;
24            (M) An amount equal to those dividends included in
25        such total that were paid by a corporation that
26        conducts business operations in a federally designated

 

 

HB5310- 92 -LRB103 38162 HLH 68295 b

1        Foreign Trade Zone or Sub-Zone and that is designated
2        a High Impact Business located in Illinois; provided
3        that dividends eligible for the deduction provided in
4        subparagraph (K) of paragraph (2) of this subsection
5        shall not be eligible for the deduction provided under
6        this subparagraph (M);
7            (N) An amount equal to the amount of the deduction
8        used to compute the federal income tax credit for
9        restoration of substantial amounts held under claim of
10        right for the taxable year pursuant to Section 1341 of
11        the Internal Revenue Code;
12            (O) 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

 

 

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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

 

 

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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 (O) is exempt from the provisions of
14        Section 250;
15            (P) 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 (D-5), 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 (O) and for which the taxpayer was
24        required in any taxable year to make an addition
25        modification under subparagraph (D-5), then an amount
26        equal to that addition modification.

 

 

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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 (P) is exempt from the
5        provisions of Section 250;
6            (Q) 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 (Q) is exempt
22        from Section 250;
23            (R) 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

 

 

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1        member of the taxpayer's unitary business group but
2        for the fact that the foreign person's business
3        activity outside the United States is 80% or more of
4        that person's total business activity and (ii) for
5        taxable years ending on or after December 31, 2008, to
6        a person who would be a member of the same unitary
7        business group but for the fact that the person is
8        prohibited under Section 1501(a)(27) from being
9        included in the unitary business group because he or
10        she is ordinarily required to apportion business
11        income under different subsections of Section 304, but
12        not to exceed the addition modification required to be
13        made for the same taxable year under Section
14        203(d)(2)(D-7) for interest paid, accrued, or
15        incurred, directly or indirectly, to the same person.
16        This subparagraph (R) is exempt from Section 250;
17            (S) 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

 

 

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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(d)(2)(D-8) for intangible expenses and costs paid,
9        accrued, or incurred, directly or indirectly, to the
10        same person. This subparagraph (S) is exempt from
11        Section 250;
12            (T) For taxable years ending on or after December
13        31, 2011, in the case of a taxpayer who was required to
14        add back any insurance premiums under Section
15        203(d)(2)(D-9), such taxpayer may elect to subtract
16        that part of a reimbursement received from the
17        insurance company equal to the amount of the expense
18        or loss (including expenses incurred by the insurance
19        company) that would have been taken into account as a
20        deduction for federal income tax purposes if the
21        expense or loss had been uninsured. If a taxpayer
22        makes the election provided for by this subparagraph
23        (T), the insurer to which the premiums were paid must
24        add back to income the amount subtracted by the
25        taxpayer pursuant to this subparagraph (T). This
26        subparagraph (T) is exempt from the provisions of

 

 

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1        Section 250; and
2            (U) For taxable years beginning on or after
3        January 1, 2023, for any cannabis establishment
4        operating in this State and licensed under the
5        Cannabis Regulation and Tax Act or any cannabis
6        cultivation center or medical cannabis dispensing
7        organization operating in this State and licensed
8        under the Compassionate Use of Medical Cannabis
9        Program Act, an amount equal to the deductions that
10        were disallowed under Section 280E of the Internal
11        Revenue Code for the taxable year and that would not be
12        added back under this subsection. The provisions of
13        this subparagraph (U) are exempt from the provisions
14        of Section 250.
 
15    (e) Gross income; adjusted gross income; taxable income.
16        (1) In general. Subject to the provisions of paragraph
17    (2) and subsection (b)(3), for purposes of this Section
18    and Section 803(e), a taxpayer's gross income, adjusted
19    gross income, or taxable income for the taxable year shall
20    mean the amount of gross income, adjusted gross income or
21    taxable income properly reportable for federal income tax
22    purposes for the taxable year under the provisions of the
23    Internal Revenue Code. Taxable income may be less than
24    zero. However, for taxable years ending on or after
25    December 31, 1986, net operating loss carryforwards from

 

 

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1    taxable years ending prior to December 31, 1986, may not
2    exceed the sum of federal taxable income for the taxable
3    year before net operating loss deduction, plus the excess
4    of addition modifications over subtraction modifications
5    for the taxable year. For taxable years ending prior to
6    December 31, 1986, taxable income may never be an amount
7    in excess of the net operating loss for the taxable year as
8    defined in subsections (c) and (d) of Section 172 of the
9    Internal Revenue Code, provided that when taxable income
10    of a corporation (other than a Subchapter S corporation),
11    trust, or estate is less than zero and addition
12    modifications, other than those provided by subparagraph
13    (E) of paragraph (2) of subsection (b) for corporations or
14    subparagraph (E) of paragraph (2) of subsection (c) for
15    trusts and estates, exceed subtraction modifications, an
16    addition modification must be made under those
17    subparagraphs for any other taxable year to which the
18    taxable income less than zero (net operating loss) is
19    applied under Section 172 of the Internal Revenue Code or
20    under subparagraph (E) of paragraph (2) of this subsection
21    (e) applied in conjunction with Section 172 of the
22    Internal Revenue Code.
23        (2) Special rule. For purposes of paragraph (1) of
24    this subsection, the taxable income properly reportable
25    for federal income tax purposes shall mean:
26            (A) Certain life insurance companies. In the case

 

 

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1        of a life insurance company subject to the tax imposed
2        by Section 801 of the Internal Revenue Code, life
3        insurance company taxable income, plus the amount of
4        distribution from pre-1984 policyholder surplus
5        accounts as calculated under Section 815a of the
6        Internal Revenue Code;
7            (B) Certain other insurance companies. In the case
8        of mutual insurance companies subject to the tax
9        imposed by Section 831 of the Internal Revenue Code,
10        insurance company taxable income;
11            (C) Regulated investment companies. In the case of
12        a regulated investment company subject to the tax
13        imposed by Section 852 of the Internal Revenue Code,
14        investment company taxable income;
15            (D) Real estate investment trusts. In the case of
16        a real estate investment trust subject to the tax
17        imposed by Section 857 of the Internal Revenue Code,
18        real estate investment trust taxable income;
19            (E) Consolidated corporations. In the case of a
20        corporation which is a member of an affiliated group
21        of corporations filing a consolidated income tax
22        return for the taxable year for federal income tax
23        purposes, taxable income determined as if such
24        corporation had filed a separate return for federal
25        income tax purposes for the taxable year and each
26        preceding taxable year for which it was a member of an

 

 

HB5310- 101 -LRB103 38162 HLH 68295 b

1        affiliated group. For purposes of this subparagraph,
2        the taxpayer's separate taxable income shall be
3        determined as if the election provided by Section
4        243(b)(2) of the Internal Revenue Code had been in
5        effect for all such years;
6            (F) Cooperatives. In the case of a cooperative
7        corporation or association, the taxable income of such
8        organization determined in accordance with the
9        provisions of Section 1381 through 1388 of the
10        Internal Revenue Code, but without regard to the
11        prohibition against offsetting losses from patronage
12        activities against income from nonpatronage
13        activities; except that a cooperative corporation or
14        association may make an election to follow its federal
15        income tax treatment of patronage losses and
16        nonpatronage losses. In the event such election is
17        made, such losses shall be computed and carried over
18        in a manner consistent with subsection (a) of Section
19        207 of this Act and apportioned by the apportionment
20        factor reported by the cooperative on its Illinois
21        income tax return filed for the taxable year in which
22        the losses are incurred. The election shall be
23        effective for all taxable years with original returns
24        due on or after the date of the election. In addition,
25        the cooperative may file an amended return or returns,
26        as allowed under this Act, to provide that the

 

 

HB5310- 102 -LRB103 38162 HLH 68295 b

1        election shall be effective for losses incurred or
2        carried forward for taxable years occurring prior to
3        the date of the election. Once made, the election may
4        only be revoked upon approval of the Director. The
5        Department shall adopt rules setting forth
6        requirements for documenting the elections and any
7        resulting Illinois net loss and the standards to be
8        used by the Director in evaluating requests to revoke
9        elections. Public Act 96-932 is declaratory of
10        existing law;
11            (G) Subchapter S corporations. In the case of: (i)
12        a Subchapter S corporation for which there is in
13        effect an election for the taxable year under Section
14        1362 of the Internal Revenue Code, the taxable income
15        of such corporation determined in accordance with
16        Section 1363(b) of the Internal Revenue Code, except
17        that taxable income shall take into account those
18        items which are required by Section 1363(b)(1) of the
19        Internal Revenue Code to be separately stated; and
20        (ii) a Subchapter S corporation for which there is in
21        effect a federal election to opt out of the provisions
22        of the Subchapter S Revision Act of 1982 and have
23        applied instead the prior federal Subchapter S rules
24        as in effect on July 1, 1982, the taxable income of
25        such corporation determined in accordance with the
26        federal Subchapter S rules as in effect on July 1,

 

 

HB5310- 103 -LRB103 38162 HLH 68295 b

1        1982; and
2            (H) Partnerships. In the case of a partnership,
3        taxable income determined in accordance with Section
4        703 of the Internal Revenue Code, except that taxable
5        income shall take into account those items which are
6        required by Section 703(a)(1) to be separately stated
7        but which would be taken into account by an individual
8        in calculating his taxable income.
9        (3) Recapture of business expenses on disposition of
10    asset or business. Notwithstanding any other law to the
11    contrary, if in prior years income from an asset or
12    business has been classified as business income and in a
13    later year is demonstrated to be non-business income, then
14    all expenses, without limitation, deducted in such later
15    year and in the 2 immediately preceding taxable years
16    related to that asset or business that generated the
17    non-business income shall be added back and recaptured as
18    business income in the year of the disposition of the
19    asset or business. Such amount shall be apportioned to
20    Illinois using the greater of the apportionment fraction
21    computed for the business under Section 304 of this Act
22    for the taxable year or the average of the apportionment
23    fractions computed for the business under Section 304 of
24    this Act for the taxable year and for the 2 immediately
25    preceding taxable years.
 

 

 

HB5310- 104 -LRB103 38162 HLH 68295 b

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
26        date (determined under the Internal Revenue Code as in

 

 

HB5310- 105 -LRB103 38162 HLH 68295 b

1        effect on that date), or (ii) the total gain realized
2        and reportable for federal income tax purposes in
3        respect of the sale, exchange or other disposition of
4        such property.
5            (B) If the fair market value of property referred
6        to in paragraph (1) was not readily ascertainable on
7        August 1, 1969, the pre-August 1, 1969 appreciation
8        amount for such property is that amount which bears
9        the same ratio to the total gain reported in respect of
10        the property for federal income tax purposes for the
11        taxable year, as the number of full calendar months in
12        that part of the taxpayer's holding period for the
13        property ending July 31, 1969 bears to the number of
14        full calendar months in the taxpayer's entire holding
15        period for the property.
16            (C) The Department shall prescribe such
17        regulations as may be necessary to carry out the
18        purposes of this paragraph.
 
19    (g) Double deductions. Unless specifically provided
20otherwise, nothing in this Section shall permit the same item
21to be deducted more than once.
 
22    (h) Legislative intention. Except as expressly provided by
23this Section there shall be no modifications or limitations on
24the amounts of income, gain, loss or deduction taken into

 

 

HB5310- 106 -LRB103 38162 HLH 68295 b

1account in determining gross income, adjusted gross income or
2taxable income for federal income tax purposes for the taxable
3year, or in the amount of such items entering into the
4computation of base income and net income under this Act for
5such taxable year, whether in respect of property values as of
6August 1, 1969 or otherwise.
7(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
8102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
912-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised
109-26-23.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.