093_HB3317

 
                                     LRB093 10725 SJM 11113 b

 1        AN ACT concerning finance.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  State Finance Act is amended by adding
 5    Sections 5.595 and 6z-59 as follows:

 6        (30 ILCS 105/5.595 new)
 7        Sec. 5.595. The School District Property Tax Relief Fund.

 8        (30 ILCS 105/6z-59 new)
 9        Sec. 6z-59.  School District Property  Tax  Relief  Fund.
10    The  School District Property Tax Relief Fund is created as a
11    special fund in the State treasury.  All interest  earned  on
12    moneys in the Fund shall be deposited into the Fund.
13        (a)  As used in this Section:
14        "Department" means the Illinois Department of Revenue.
15        "School  district  property  tax  relief grant" means the
16    money designated to be distributed to a school district  from
17    the  moneys  appropriated  by  the  General Assembly from the
18    School District Property Tax Relief Fund.
19        (b)  Between November 15 and 17 of each year beginning in
20    2003,  the  Department  must  certify  the  amount  of  money
21    available for school district property tax relief grants. The
22    amount available is equal to the amount appropriated  by  the
23    General  Assembly  or  the unencumbered amount in the Fund at
24    the time of certification, whichever is less.
25        (c)  Between November 15 and 17 of each year beginning in
26    2003, the Department must calculate  each  school  district's
27    grant amount.
28        The  amount  of  the grant for each school district for a
29    tax year is calculated as follows: (i) each  school  district
30    must  certify  to the Department the rate of the tax extended
 
                            -2-      LRB093 10725 SJM 11113 b
 1    for educational purposes for the 2001 tax  year  (payable  in
 2    2002)  for  the  school  district;  (ii)  the Department must
 3    determine the equalized assessed value (EAV) of  all  taxable
 4    property  in  the  school district for the tax year preceding
 5    the then current tax year; (iii) the rate determined in  item
 6    (i)  is  multiplied  by the EAV determined in item (ii); (iv)
 7    the amounts determined in item (iii) for all school districts
 8    are added together to reach an aggregate total for all school
 9    districts; and (v) the amount certified by the Department  as
10    available for distribution for that tax year is multiplied by
11    the  amount  determined in item (iii) and then the product is
12    divided by the amount determined in  item  (iv).  The  result
13    determined  in item (v) is the grant amount for the tax year.
14    For example:
15             (1)  Total grant amount certified by the  Department
16        for  the  tax  year  is  $5,000,000  to be distributed to
17        school districts A and B.
18             (2)  School district A:
19                  (A)  Tax rate for educational purposes for  the
20             2001 tax year was 1.50%.
21                  (B)  Equalized  assessed  value  of all taxable
22             property in school district A for the preceding  tax
23             year was $50,000,000.
24             (3)  School district B:
25                  (A)  Tax  rate for educational purposes for the
26             2001 tax year was 1.35%.
27                  (B)  Equalized assessed value  of  all  taxable
28             property  in school district B for the preceding tax
29             year was $75,000,000.
30    For school  district  A,  the  tax  rate  multiplied  by  the
31    preceding  tax year's equalized assessed value of all taxable
32    property is $750,000 (1.50% multiplied by  $50,000,000).  For
33    school  district  B, the tax rate multiplied by the preceding
34    tax year's equalized assessed value of all  taxable  property
 
                            -3-      LRB093 10725 SJM 11113 b
 1    is  $1,012,500  (1.35% multiplied by $75,000,000). The sum of
 2    these 2 amounts is $1,762,500. The grant for school  district
 3    A  is $5,000,000 (the total amount of grant moneys available)
 4    multiplied by $750,000 and then the  product  is  divided  by
 5    $1,762,500.  School  district  A's  grant  is $2,127,660. The
 6    grant for school district B is $5,000,000 (the  total  amount
 7    of  grant moneys available) multiplied by $1,012,500 and then
 8    the product is divided by  $1,762,500.  School  district  B's
 9    grant is $2,872,340.
10        The   Department   must  adopt  rules  to  determine  the
11    computation of the grant amount for a  school  district  that
12    has undergone school district reorganization under Article 7,
13    7A,  11A,  11B,  or  11D  of  the  School  Code (for example:
14    consolidation, conversion into a different type of  district,
15    or creation of a new district).
16        (d)  Between November 15 and 17 of each year beginning in
17    2003, the Department must certify to the county clerk of each
18    county the amount of the grant for each school district lying
19    wholly  or  partly  in  the  county  to be paid to the county
20    collector for distribution to the school district. The amount
21    of the grant for a school district that lies  partly  in  the
22    county shall be that amount which bears the same ratio to the
23    grant for the whole school district as the equalized assessed
24    value  of the taxable property in the school district for the
25    preceding tax year that lies  in  the  county  bears  to  the
26    equalized  assessed  value  of  all  taxable  property in the
27    school district for the preceding tax year.
28        (e)  Upon receipt of  a  notice  from  the  county  clerk
29    required  under  Section 18-178 of the Property Tax Code that
30    the extension for educational purposes  has  been  determined
31    and  abated  for  each  school  district  or part of a school
32    district in the county, the Department must  certify  to  the
33    Comptroller  the  amount  of the school district property tax
34    relief  grant  to  be  paid  to  the  county  collector.  The
 
                            -4-      LRB093 10725 SJM 11113 b
 1    Comptroller must  promptly  pay  the  grants  to  the  county
 2    collector.  Upon  receipt of the school district property tax
 3    relief grants, the county collector must pay  the  grants  to
 4    the respective school districts within 5 business days.

 5        Section  10.   The  Illinois Income Tax Act is amended by
 6    changing Section 203 as follows:

 7        (35 ILCS 5/203) (from Ch. 120, par. 2-203)
 8        Sec. 203.  Base income defined.
 9        (a)  Individuals.
10             (1)  In general.  In the case of an individual, base
11        income means an amount equal to the  taxpayer's  adjusted
12        gross   income  for  the  taxable  year  as  modified  by
13        paragraph (2).
14             (2)  Modifications.   The  adjusted   gross   income
15        referred  to in paragraph (1) shall be modified by adding
16        thereto the sum of the following amounts:
17                  (A)  An amount equal to  all  amounts  paid  or
18             accrued  to  the  taxpayer  as interest or dividends
19             during the taxable year to the extent excluded  from
20             gross  income  in  the computation of adjusted gross
21             income, except stock dividends of  qualified  public
22             utilities   described   in  Section  305(e)  of  the
23             Internal Revenue Code;
24                  (B)  An amount  equal  to  the  amount  of  tax
25             imposed  by  this  Act  to  the extent deducted from
26             gross income in the computation  of  adjusted  gross
27             income for the taxable year;
28                  (C)  An  amount  equal  to  the amount received
29             during the taxable year as a recovery or  refund  of
30             real   property  taxes  paid  with  respect  to  the
31             taxpayer's principal residence under the Revenue Act
32             of 1939 and for which  a  deduction  was  previously
 
                            -5-      LRB093 10725 SJM 11113 b
 1             taken  under  subparagraph (L) of this paragraph (2)
 2             prior to July 1, 1991, the retrospective application
 3             date of Article 4 of Public Act 87-17.  In the  case
 4             of  multi-unit  or  multi-use  structures  and  farm
 5             dwellings,  the  taxes  on  the taxpayer's principal
 6             residence shall be that portion of the  total  taxes
 7             for  the  entire  property  which is attributable to
 8             such principal residence;
 9                  (D)  An amount  equal  to  the  amount  of  the
10             capital  gain deduction allowable under the Internal
11             Revenue Code, to  the  extent  deducted  from  gross
12             income in the computation of adjusted gross income;
13                  (D-5)  An amount, to the extent not included in
14             adjusted  gross income, equal to the amount of money
15             withdrawn by the taxpayer in the taxable year from a
16             medical care savings account and the interest earned
17             on the account in the taxable year of  a  withdrawal
18             pursuant  to  subsection  (b)  of  Section 20 of the
19             Medical Care Savings Account Act or  subsection  (b)
20             of  Section  20  of the Medical Care Savings Account
21             Act of 2000;
22                  (D-10)  For taxable years ending after December
23             31,  1997,  an  amount   equal   to   any   eligible
24             remediation  costs  that  the individual deducted in
25             computing adjusted gross income and  for  which  the
26             individual  claims  a credit under subsection (l) of
27             Section 201;
28                  (D-15)  For taxable years 2001 and  thereafter,
29             an  amount equal to the bonus depreciation deduction
30             (30%  of  the  adjusted  basis  of   the   qualified
31             property) taken on the taxpayer's federal income tax
32             return  for the taxable year under subsection (k) of
33             Section 168 of the Internal Revenue Code; and
34                  (D-16)  If the taxpayer reports a capital  gain
 
                            -6-      LRB093 10725 SJM 11113 b
 1             or  loss on the taxpayer's federal income tax return
 2             for the taxable year based on a sale or transfer  of
 3             property  for which the taxpayer was required in any
 4             taxable year to make an addition modification  under
 5             subparagraph  (D-15),  then  an  amount equal to the
 6             aggregate amount of  the  deductions  taken  in  all
 7             taxable years under subparagraph (Z) with respect to
 8             that property.;
 9                  The  taxpayer  is required to make the addition
10             modification under this subparagraph only once  with
11             respect to any one piece of property;. and
12                  (D-20)  (D-15)  For  taxable years beginning on
13             or  after  January  1,  2002,  in  the  case  of   a
14             distribution  from a qualified tuition program under
15             Section 529 of the Internal Revenue Code, other than
16             (i) a  distribution  from  a  College  Savings  Pool
17             created  under  Section  16.5 of the State Treasurer
18             Act or (ii) a distribution from the Illinois Prepaid
19             Tuition Trust Fund, an amount equal  to  the  amount
20             excluded    from    gross   income   under   Section
21             529(c)(3)(B);
22        and by deducting from the total so obtained  the  sum  of
23        the following amounts:
24                  (E)  For  taxable  years ending before December
25             31, 2001, any  amount  included  in  such  total  in
26             respect  of  any  compensation  (including  but  not
27             limited  to  any  compensation  paid or accrued to a
28             serviceman while a prisoner of  war  or  missing  in
29             action)  paid  to  a  resident by reason of being on
30             active duty in the Armed Forces of the United States
31             and in respect of any compensation paid  or  accrued
32             to  a  resident who as a governmental employee was a
33             prisoner of war or missing in action, and in respect
34             of any compensation paid to a resident  in  1971  or
 
                            -7-      LRB093 10725 SJM 11113 b
 1             thereafter for annual training performed pursuant to
 2             Sections  502  and 503, Title 32, United States Code
 3             as a member of  the  Illinois  National  Guard.  For
 4             taxable  years ending on or after December 31, 2001,
 5             any amount included in such total in respect of  any
 6             compensation  (including  but  not  limited  to  any
 7             compensation paid or accrued to a serviceman while a
 8             prisoner  of  war  or  missing  in action) paid to a
 9             resident  by  reason  of  being  a  member  of   any
10             component  of  the Armed Forces of the United States
11             and in respect of any compensation paid  or  accrued
12             to  a  resident who as a governmental employee was a
13             prisoner of war or missing in action, and in respect
14             of any compensation paid to a resident  in  2001  or
15             thereafter  by  reason  of  being  a  member  of the
16             Illinois National  Guard.  The  provisions  of  this
17             amendatory  Act  of  the  92nd  General Assembly are
18             exempt from the provisions 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
23             such  total as distributions under the provisions of
24             any retirement or disability plan for  employees  of
25             any  governmental  agency  or  unit,  or  retirement
26             payments  to  retired  partners,  which payments are
27             excluded  in  computing  net  earnings   from   self
28             employment  by  Section 1402 of the Internal Revenue
29             Code and regulations adopted pursuant thereto;
30                  (G)  The valuation limitation amount;
31                  (H)  An amount equal to the amount of  any  tax
32             imposed  by  this  Act  which  was  refunded  to the
33             taxpayer and included in such total for the  taxable
34             year;
 
                            -8-      LRB093 10725 SJM 11113 b
 1                  (I)  An amount equal to all amounts included in
 2             such total pursuant to the provisions of Section 111
 3             of  the Internal Revenue Code as a recovery of items
 4             previously deducted from adjusted  gross  income  in
 5             the computation of taxable income;
 6                  (J)  An   amount   equal   to  those  dividends
 7             included  in  such  total  which  were  paid  by   a
 8             corporation which conducts business operations in an
 9             Enterprise  Zone or zones created under the Illinois
10             Enterprise Zone Act, and conducts substantially  all
11             of its operations in an Enterprise Zone or zones;
12                  (K)  An   amount   equal   to  those  dividends
13             included  in  such  total  that  were  paid   by   a
14             corporation  that  conducts business operations in a
15             federally designated Foreign Trade Zone or  Sub-Zone
16             and  that  is  designated  a  High  Impact  Business
17             located   in   Illinois;   provided  that  dividends
18             eligible for the deduction provided in  subparagraph
19             (J) of paragraph (2) of this subsection shall not be
20             eligible  for  the  deduction  provided  under  this
21             subparagraph (K);
22                  (L)  For  taxable  years  ending after December
23             31, 1983, an amount equal  to  all  social  security
24             benefits  and  railroad retirement benefits included
25             in such total pursuant to Sections 72(r) and  86  of
26             the Internal Revenue Code;
27                  (M)  With   the   exception   of   any  amounts
28             subtracted under subparagraph (N), an  amount  equal
29             to  the  sum of all amounts disallowed as deductions
30             by (i)  Sections  171(a)  (2),  and  265(2)  of  the
31             Internal  Revenue  Code of 1954, as now or hereafter
32             amended, and all amounts of  expenses  allocable  to
33             interest  and   disallowed  as deductions by Section
34             265(1) of the Internal Revenue Code of 1954, as  now
 
                            -9-      LRB093 10725 SJM 11113 b
 1             or  hereafter  amended;  and  (ii) for taxable years
 2             ending  on  or  after  August  13,  1999,   Sections
 3             171(a)(2),  265,  280C,  and  832(b)(5)(B)(i) of the
 4             Internal  Revenue  Code;  the  provisions  of   this
 5             subparagraph  are  exempt  from  the  provisions  of
 6             Section 250;
 7                  (N)  An amount equal to all amounts included in
 8             such  total  which  are exempt from taxation by this
 9             State  either  by  reason   of   its   statutes   or
10             Constitution  or  by  reason  of  the  Constitution,
11             treaties  or statutes of the United States; provided
12             that, in the case of any statute of this State  that
13             exempts   income   derived   from   bonds  or  other
14             obligations from the tax imposed under this Act, the
15             amount exempted shall be the interest  net  of  bond
16             premium amortization;
17                  (O)  An  amount  equal to any contribution made
18             to a job training project  established  pursuant  to
19             the Tax Increment Allocation Redevelopment Act;
20                  (P)  An  amount  equal  to  the  amount  of the
21             deduction used to compute  the  federal  income  tax
22             credit  for  restoration of substantial amounts held
23             under claim of right for the taxable  year  pursuant
24             to  Section  1341  of  the  Internal Revenue Code of
25             1986;
26                  (Q)  An amount equal to any amounts included in
27             such  total,  received  by  the   taxpayer   as   an
28             acceleration  in  the  payment of life, endowment or
29             annuity benefits in advance of the time  they  would
30             otherwise  be payable as an indemnity for a terminal
31             illness;
32                  (R)  An amount  equal  to  the  amount  of  any
33             federal  or  State  bonus  paid  to  veterans of the
34             Persian Gulf War;
 
                            -10-     LRB093 10725 SJM 11113 b
 1                  (S)  An  amount,  to  the  extent  included  in
 2             adjusted gross income, equal  to  the  amount  of  a
 3             contribution  made  in the taxable year on behalf of
 4             the taxpayer  to  a  medical  care  savings  account
 5             established  under  the Medical Care Savings Account
 6             Act or the Medical Care Savings Account Act of  2000
 7             to  the  extent  the contribution is accepted by the
 8             account administrator as provided in that Act;
 9                  (T)  An  amount,  to  the  extent  included  in
10             adjusted  gross  income,  equal  to  the  amount  of
11             interest earned in the taxable  year  on  a  medical
12             care  savings  account established under the Medical
13             Care Savings Account Act or the Medical Care Savings
14             Account Act of 2000 on behalf of the taxpayer, other
15             than interest added pursuant to item (D-5)  of  this
16             paragraph (2);
17                  (U)  For one taxable year beginning on or after
18             January 1, 1994, an amount equal to the total amount
19             of  tax  imposed  and paid under subsections (a) and
20             (b) of Section 201 of  this  Act  on  grant  amounts
21             received  by  the  taxpayer  under  the Nursing Home
22             Grant Assistance Act during the  taxpayer's  taxable
23             years 1992 and 1993;
24                  (V)  Beginning  with  tax  years  ending  on or
25             after December 31, 1995 and ending  with  tax  years
26             ending  on  or  before  December 31, 2004, an amount
27             equal to the amount paid by  a  taxpayer  who  is  a
28             self-employed  taxpayer, a partner of a partnership,
29             or a shareholder in a Subchapter S  corporation  for
30             health  insurance  or  long-term  care insurance for
31             that  taxpayer  or   that   taxpayer's   spouse   or
32             dependents,  to  the extent that the amount paid for
33             that health insurance or  long-term  care  insurance
34             may  be  deducted  under Section 213 of the Internal
 
                            -11-     LRB093 10725 SJM 11113 b
 1             Revenue Code of 1986, has not been deducted  on  the
 2             federal  income tax return of the taxpayer, and does
 3             not exceed the taxable income attributable  to  that
 4             taxpayer's   income,   self-employment   income,  or
 5             Subchapter S  corporation  income;  except  that  no
 6             deduction  shall  be  allowed under this item (V) if
 7             the taxpayer  is  eligible  to  participate  in  any
 8             health insurance or long-term care insurance plan of
 9             an  employer  of  the  taxpayer  or  the  taxpayer's
10             spouse.   The  amount  of  the  health insurance and
11             long-term care insurance subtracted under this  item
12             (V)  shall be determined by multiplying total health
13             insurance and long-term care insurance premiums paid
14             by the taxpayer times a number that  represents  the
15             fractional  percentage  of eligible medical expenses
16             under Section 213 of the Internal  Revenue  Code  of
17             1986 not actually deducted on the taxpayer's federal
18             income tax return;
19                  (W)  For  taxable  years  beginning on or after
20             January  1,  1998,  all  amounts  included  in   the
21             taxpayer's  federal gross income in the taxable year
22             from amounts converted from a regular IRA to a  Roth
23             IRA. This paragraph is exempt from the provisions of
24             Section 250;
25                  (X)  For  taxable  year 1999 and thereafter, an
26             amount equal to the amount of any (i) distributions,
27             to the extent includible in gross income for federal
28             income tax purposes, made to the taxpayer because of
29             his or her status as a  victim  of  persecution  for
30             racial  or  religious reasons by Nazi Germany or any
31             other Axis regime or as an heir of  the  victim  and
32             (ii)  items  of  income, to the extent includible in
33             gross  income  for  federal  income  tax   purposes,
34             attributable  to, derived from or in any way related
 
                            -12-     LRB093 10725 SJM 11113 b
 1             to assets stolen from,  hidden  from,  or  otherwise
 2             lost  to  a  victim  of  persecution  for  racial or
 3             religious reasons by Nazi Germany or any other  Axis
 4             regime immediately prior to, during, and immediately
 5             after  World  War II, including, but not limited to,
 6             interest on the  proceeds  receivable  as  insurance
 7             under policies issued to a victim of persecution for
 8             racial  or  religious reasons by Nazi Germany or any
 9             other Axis regime by  European  insurance  companies
10             immediately  prior  to  and  during  World  War  II;
11             provided,  however,  this  subtraction  from federal
12             adjusted gross  income  does  not  apply  to  assets
13             acquired  with such assets or with the proceeds from
14             the sale of such  assets;  provided,  further,  this
15             paragraph shall only apply to a taxpayer who was the
16             first  recipient of such assets after their recovery
17             and who is a victim of  persecution  for  racial  or
18             religious  reasons by Nazi Germany or any other Axis
19             regime or as an heir of the victim.  The  amount  of
20             and  the  eligibility  for  any  public  assistance,
21             benefit,  or  similar entitlement is not affected by
22             the  inclusion  of  items  (i)  and  (ii)  of   this
23             paragraph  in  gross  income  for federal income tax
24             purposes.  This  paragraph  is   exempt   from   the
25             provisions of Section 250;
26                  (Y)  For  taxable  years  beginning on or after
27             January 1, 2002, moneys contributed in  the  taxable
28             year to a College Savings Pool account under Section
29             16.5 of the State Treasurer Act, except that amounts
30             excluded    from    gross   income   under   Section
31             529(c)(3)(C)(i) of the Internal Revenue  Code  shall
32             not  be  considered  moneys  contributed  under this
33             subparagraph (Y).  This subparagraph (Y)  is  exempt
34             from the provisions of Section 250;
 
                            -13-     LRB093 10725 SJM 11113 b
 1                  (Z)  For taxable years 2001 and thereafter, for
 2             the  taxable  year  in  which the bonus depreciation
 3             deduction  (30%  of  the  adjusted  basis   of   the
 4             qualified  property)  is  taken  on  the  taxpayer's
 5             federal  income  tax  return under subsection (k) of
 6             Section 168 of the Internal  Revenue  Code  and  for
 7             each  applicable  taxable year thereafter, an amount
 8             equal to "x", where:
 9                       (1)  "y"  equals   the   amount   of   the
10                  depreciation  deduction  taken  for the taxable
11                  year  on  the  taxpayer's  federal  income  tax
12                  return  on  property  for   which   the   bonus
13                  depreciation  deduction  (30%  of  the adjusted
14                  basis of the qualified property) was  taken  in
15                  any year under subsection (k) of Section 168 of
16                  the  Internal  Revenue  Code, but not including
17                  the bonus depreciation deduction; and
18                       (2)  "x" equals "y" multiplied by  30  and
19                  then  divided  by  70  (or  "y"  multiplied  by
20                  0.429).
21                  The   aggregate   amount  deducted  under  this
22             subparagraph in all taxable years for any one  piece
23             of  property  may not exceed the amount of the bonus
24             depreciation deduction (30% of the adjusted basis of
25             the qualified property) taken on  that  property  on
26             the  taxpayer's  federal  income  tax  return  under
27             subsection  (k)  of  Section  168  of  the  Internal
28             Revenue Code; and
29                  (AA)  If the taxpayer reports a capital gain or
30             loss on the taxpayer's federal income tax return for
31             the  taxable  year  based  on  a sale or transfer of
32             property for which the taxpayer was required in  any
33             taxable  year to make an addition modification under
34             subparagraph (D-15), then an amount  equal  to  that
 
                            -14-     LRB093 10725 SJM 11113 b
 1             addition modification.
 2                  The  taxpayer  is allowed to take the deduction
 3             under this subparagraph only once  with  respect  to
 4             any one piece of property; and
 5                  (BB) (Z)  Any amount included in adjusted gross
 6             income, other than salary, received by a driver in a
 7             ridesharing arrangement using a motor vehicle; and
 8                  (CC)  Beginning  with  tax  years  ending on or
 9             after December 31, 2003 and ending  with  tax  years
10             ending  on  or  before December 30, 2008, an amount,
11             not to exceed $1,200, equal  to  15%  of  the  total
12             amount  of rent paid by the taxpayer during the year
13             for  the  principal  place  of  residence   of   the
14             taxpayer.

15        (b)  Corporations.
16             (1)  In general.  In the case of a corporation, base
17        income  means  an  amount equal to the taxpayer's taxable
18        income for the taxable year as modified by paragraph (2).
19             (2)  Modifications.  The taxable income referred  to
20        in  paragraph (1) shall be modified by adding thereto the
21        sum of the following amounts:
22                  (A)  An amount equal to  all  amounts  paid  or
23             accrued   to   the  taxpayer  as  interest  and  all
24             distributions  received  from  regulated  investment
25             companies during the  taxable  year  to  the  extent
26             excluded  from  gross  income  in the computation of
27             taxable income;
28                  (B)  An amount  equal  to  the  amount  of  tax
29             imposed  by  this  Act  to  the extent deducted from
30             gross income in the computation  of  taxable  income
31             for the taxable year;
32                  (C)  In  the  case  of  a  regulated investment
33             company, an amount equal to the excess  of  (i)  the
34             net  long-term  capital  gain  for the taxable year,
 
                            -15-     LRB093 10725 SJM 11113 b
 1             over (ii) the amount of the capital  gain  dividends
 2             designated   as  such  in  accordance  with  Section
 3             852(b)(3)(C) of the Internal Revenue  Code  and  any
 4             amount  designated under Section 852(b)(3)(D) of the
 5             Internal Revenue Code, attributable to  the  taxable
 6             year (this amendatory Act of 1995 (Public Act 89-89)
 7             is  declarative  of  existing  law  and is not a new
 8             enactment);
 9                  (D)  The  amount  of  any  net  operating  loss
10             deduction taken in arriving at taxable income, other
11             than a net operating loss  carried  forward  from  a
12             taxable year ending prior to December 31, 1986;
13                  (E)  For taxable years in which a net operating
14             loss  carryback  or carryforward from a taxable year
15             ending prior to December 31, 1986 is an  element  of
16             taxable income under paragraph (1) of subsection (e)
17             or  subparagraph  (E) of paragraph (2) of subsection
18             (e), the  amount  by  which  addition  modifications
19             other  than  those provided by this subparagraph (E)
20             exceeded subtraction modifications in  such  earlier
21             taxable year, with the following limitations applied
22             in the order that they are listed:
23                       (i)  the addition modification relating to
24                  the  net operating loss carried back or forward
25                  to the  taxable  year  from  any  taxable  year
26                  ending  prior  to  December  31,  1986 shall be
27                  reduced by the amount of addition  modification
28                  under  this  subparagraph  (E) which related to
29                  that net operating loss  and  which  was  taken
30                  into  account in calculating the base income of
31                  an earlier taxable year, and
32                       (ii)  the addition  modification  relating
33                  to  the  net  operating  loss  carried  back or
34                  forward to the taxable year  from  any  taxable
 
                            -16-     LRB093 10725 SJM 11113 b
 1                  year  ending  prior  to December 31, 1986 shall
 2                  not exceed the  amount  of  such  carryback  or
 3                  carryforward;
 4                  For  taxable  years  in  which  there  is a net
 5             operating loss carryback or carryforward  from  more
 6             than one other taxable year ending prior to December
 7             31, 1986, the addition modification provided in this
 8             subparagraph  (E)  shall  be  the sum of the amounts
 9             computed   independently   under    the    preceding
10             provisions  of  this  subparagraph (E) for each such
11             taxable year;
12                  (E-5)  For taxable years ending after  December
13             31,   1997,   an   amount   equal  to  any  eligible
14             remediation costs that the corporation  deducted  in
15             computing  adjusted  gross  income and for which the
16             corporation claims a credit under subsection (l)  of
17             Section 201;
18                  (E-10)  For  taxable years 2001 and thereafter,
19             an amount equal to the bonus depreciation  deduction
20             (30%   of   the  adjusted  basis  of  the  qualified
21             property) taken on the taxpayer's federal income tax
22             return for the taxable year under subsection (k)  of
23             Section 168 of the Internal Revenue Code; and
24                  (E-11)  If  the taxpayer reports a capital gain
25             or loss on the taxpayer's federal income tax  return
26             for  the taxable year based on a sale or transfer of
27             property for which the taxpayer was required in  any
28             taxable  year to make an addition modification under
29             subparagraph (E-10), then an  amount  equal  to  the
30             aggregate  amount  of  the  deductions  taken in all
31             taxable years under subparagraph (T) with respect to
32             that property.;
33                  The taxpayer is required to make  the  addition
34             modification  under this subparagraph only once with
 
                            -17-     LRB093 10725 SJM 11113 b
 1             respect to any one piece of property;
 2        and by deducting from the total so obtained  the  sum  of
 3        the following amounts:
 4                  (F)  An  amount  equal to the amount of any tax
 5             imposed by  this  Act  which  was  refunded  to  the
 6             taxpayer  and included in such total for the taxable
 7             year;
 8                  (G)  An amount equal to any amount included  in
 9             such  total under Section 78 of the Internal Revenue
10             Code;
11                  (H)  In the  case  of  a  regulated  investment
12             company,  an  amount  equal  to the amount of exempt
13             interest dividends as defined in subsection (b)  (5)
14             of Section 852 of the Internal Revenue Code, paid to
15             shareholders for the taxable year;
16                  (I)  With   the   exception   of   any  amounts
17             subtracted under subparagraph (J), an  amount  equal
18             to  the  sum of all amounts disallowed as deductions
19             by  (i)  Sections  171(a)  (2),  and  265(a)(2)  and
20             amounts disallowed as interest  expense  by  Section
21             291(a)(3)  of  the  Internal Revenue Code, as now or
22             hereafter  amended,  and  all  amounts  of  expenses
23             allocable to interest and disallowed  as  deductions
24             by  Section  265(a)(1) of the Internal Revenue Code,
25             as now or hereafter amended; and  (ii)  for  taxable
26             years  ending  on or after August 13, 1999, Sections
27             171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
28             of the Internal Revenue Code; the provisions of this
29             subparagraph  are  exempt  from  the  provisions  of
30             Section 250;
31                  (J)  An amount equal to all amounts included in
32             such total which are exempt from  taxation  by  this
33             State   either   by   reason   of  its  statutes  or
34             Constitution  or  by  reason  of  the  Constitution,
 
                            -18-     LRB093 10725 SJM 11113 b
 1             treaties or statutes of the United States;  provided
 2             that,  in the case of any statute of this State that
 3             exempts  income  derived   from   bonds   or   other
 4             obligations from the tax imposed under this Act, the
 5             amount  exempted  shall  be the interest net of bond
 6             premium amortization;
 7                  (K)  An  amount  equal   to   those   dividends
 8             included   in  such  total  which  were  paid  by  a
 9             corporation which conducts business operations in an
10             Enterprise Zone or zones created under the  Illinois
11             Enterprise  Zone  Act and conducts substantially all
12             of its operations in an Enterprise Zone or zones;
13                  (L)  An  amount  equal   to   those   dividends
14             included   in   such  total  that  were  paid  by  a
15             corporation that conducts business operations  in  a
16             federally  designated Foreign Trade Zone or Sub-Zone
17             and  that  is  designated  a  High  Impact  Business
18             located  in  Illinois;   provided   that   dividends
19             eligible  for the deduction provided in subparagraph
20             (K) of paragraph 2 of this subsection shall  not  be
21             eligible  for  the  deduction  provided  under  this
22             subparagraph (L);
23                  (M)  For  any  taxpayer  that  is  a  financial
24             organization within the meaning of Section 304(c) of
25             this  Act,  an  amount  included  in  such  total as
26             interest income from a loan or loans  made  by  such
27             taxpayer  to  a  borrower, to the extent that such a
28             loan is secured by property which  is  eligible  for
29             the Enterprise Zone Investment Credit.  To determine
30             the  portion  of  a loan or loans that is secured by
31             property eligible for a  Section  201(f)  investment
32             credit  to the borrower, the entire principal amount
33             of the loan or loans between the  taxpayer  and  the
34             borrower  should  be  divided  into the basis of the
 
                            -19-     LRB093 10725 SJM 11113 b
 1             Section  201(f)  investment  credit  property  which
 2             secures the loan or loans, using  for  this  purpose
 3             the original basis of such property on the date that
 4             it  was  placed  in  service in the Enterprise Zone.
 5             The subtraction modification available  to  taxpayer
 6             in  any  year  under  this  subsection shall be that
 7             portion of the total interest paid by  the  borrower
 8             with  respect  to  such  loan  attributable  to  the
 9             eligible  property  as calculated under the previous
10             sentence;
11                  (M-1)  For any taxpayer  that  is  a  financial
12             organization within the meaning of Section 304(c) of
13             this  Act,  an  amount  included  in  such  total as
14             interest income from a loan or loans  made  by  such
15             taxpayer  to  a  borrower, to the extent that such a
16             loan is secured by property which  is  eligible  for
17             the  High  Impact  Business  Investment  Credit.  To
18             determine the portion of a loan  or  loans  that  is
19             secured  by  property  eligible for a Section 201(h)
20             investment  credit  to  the  borrower,  the   entire
21             principal  amount  of  the loan or loans between the
22             taxpayer and the borrower should be divided into the
23             basis  of  the  Section  201(h)  investment   credit
24             property  which secures the loan or loans, using for
25             this purpose the original basis of such property  on
26             the  date  that  it  was  placed  in  service  in  a
27             federally  designated Foreign Trade Zone or Sub-Zone
28             located in Illinois.  No taxpayer that  is  eligible
29             for  the  deduction  provided in subparagraph (M) of
30             paragraph (2) of this subsection shall  be  eligible
31             for  the  deduction provided under this subparagraph
32             (M-1).  The subtraction  modification  available  to
33             taxpayers in any year under this subsection shall be
34             that  portion  of  the  total  interest  paid by the
 
                            -20-     LRB093 10725 SJM 11113 b
 1             borrower with respect to such loan  attributable  to
 2             the   eligible  property  as  calculated  under  the
 3             previous sentence;
 4                  (N)  Two times any contribution made during the
 5             taxable year to a designated  zone  organization  to
 6             the  extent that the contribution (i) qualifies as a
 7             charitable  contribution  under  subsection  (c)  of
 8             Section 170 of the Internal Revenue  Code  and  (ii)
 9             must,  by  its terms, be used for a project approved
10             by the Department of Commerce and Community  Affairs
11             under  Section  11  of  the Illinois Enterprise Zone
12             Act;
13                  (O)  An amount equal to: (i)  85%  for  taxable
14             years  ending  on or before December 31, 1992, or, a
15             percentage equal to the percentage  allowable  under
16             Section  243(a)(1)  of  the Internal Revenue Code of
17             1986 for taxable years  ending  after  December  31,
18             1992,  of  the amount by which dividends included in
19             taxable income and received from a corporation  that
20             is  not  created  or organized under the laws of the
21             United States or any state or political  subdivision
22             thereof,  including,  for taxable years ending on or
23             after  December  31,  1988,  dividends  received  or
24             deemed  received  or  paid  or  deemed  paid   under
25             Sections  951  through  964  of the Internal Revenue
26             Code, exceed the amount of the modification provided
27             under subparagraph (G)  of  paragraph  (2)  of  this
28             subsection  (b)  which is related to such dividends;
29             plus (ii) 100% of the  amount  by  which  dividends,
30             included  in taxable income and received, including,
31             for taxable years ending on or  after  December  31,
32             1988,  dividends received or deemed received or paid
33             or deemed paid under Sections 951 through 964 of the
34             Internal Revenue Code,  from  any  such  corporation
 
                            -21-     LRB093 10725 SJM 11113 b
 1             specified  in  clause  (i)  that  would  but for the
 2             provisions of Section 1504 (b) (3) of  the  Internal
 3             Revenue   Code   be  treated  as  a  member  of  the
 4             affiliated  group  which   includes   the   dividend
 5             recipient,  exceed  the  amount  of the modification
 6             provided under subparagraph (G) of paragraph (2)  of
 7             this   subsection  (b)  which  is  related  to  such
 8             dividends;
 9                  (P)  An amount equal to any  contribution  made
10             to  a  job  training project established pursuant to
11             the Tax Increment Allocation Redevelopment Act;
12                  (Q)  An amount  equal  to  the  amount  of  the
13             deduction  used  to  compute  the federal income tax
14             credit for restoration of substantial  amounts  held
15             under  claim  of right for the taxable year pursuant
16             to Section 1341 of  the  Internal  Revenue  Code  of
17             1986;
18                  (R)  In  the  case  of an attorney-in-fact with
19             respect to whom  an  interinsurer  or  a  reciprocal
20             insurer  has  made the election under Section 835 of
21             the Internal Revenue Code, 26 U.S.C. 835, an  amount
22             equal  to the excess, if any, of the amounts paid or
23             incurred by that interinsurer or reciprocal  insurer
24             in the taxable year to the attorney-in-fact over the
25             deduction allowed to that interinsurer or reciprocal
26             insurer  with  respect to the attorney-in-fact under
27             Section 835(b) of the Internal Revenue Code for  the
28             taxable year;
29                  (S)  For  taxable  years  ending  on  or  after
30             December  31,  1997,  in  the case of a Subchapter S
31             corporation, an  amount  equal  to  all  amounts  of
32             income  allocable  to  a  shareholder subject to the
33             Personal Property Tax Replacement Income Tax imposed
34             by subsections (c) and (d) of Section  201  of  this
 
                            -22-     LRB093 10725 SJM 11113 b
 1             Act,  including  amounts  allocable to organizations
 2             exempt from federal income tax by reason of  Section
 3             501(a)   of   the   Internal   Revenue  Code.   This
 4             subparagraph (S) is exempt from  the  provisions  of
 5             Section 250;
 6                  (T)  For taxable years 2001 and thereafter, for
 7             the  taxable  year  in  which the bonus depreciation
 8             deduction  (30%  of  the  adjusted  basis   of   the
 9             qualified  property)  is  taken  on  the  taxpayer's
10             federal  income  tax  return under subsection (k) of
11             Section 168 of the Internal  Revenue  Code  and  for
12             each  applicable  taxable year thereafter, an amount
13             equal to "x", where:
14                       (1)  "y"  equals   the   amount   of   the
15                  depreciation  deduction  taken  for the taxable
16                  year  on  the  taxpayer's  federal  income  tax
17                  return  on  property  for   which   the   bonus
18                  depreciation  deduction  (30%  of  the adjusted
19                  basis of the qualified property) was  taken  in
20                  any year under subsection (k) of Section 168 of
21                  the  Internal  Revenue  Code, but not including
22                  the bonus depreciation deduction; and
23                       (2)  "x" equals "y" multiplied by  30  and
24                  then  divided  by  70  (or  "y"  multiplied  by
25                  0.429).
26                  The   aggregate   amount  deducted  under  this
27             subparagraph in all taxable years for any one  piece
28             of  property  may not exceed the amount of the bonus
29             depreciation deduction (30% of the adjusted basis of
30             the qualified property) taken on  that  property  on
31             the  taxpayer's  federal  income  tax  return  under
32             subsection  (k)  of  Section  168  of  the  Internal
33             Revenue Code; and
34                  (U)  If  the taxpayer reports a capital gain or
 
                            -23-     LRB093 10725 SJM 11113 b
 1             loss on the taxpayer's federal income tax return for
 2             the taxable year based on  a  sale  or  transfer  of
 3             property  for which the taxpayer was required in any
 4             taxable year to make an addition modification  under
 5             subparagraph  (E-10),  then  an amount equal to that
 6             addition modification.
 7                  The taxpayer is allowed to take  the  deduction
 8             under  this  subparagraph  only once with respect to
 9             any one piece of property.
10             (3)  Special rule.  For purposes  of  paragraph  (2)
11        (A),  "gross  income"  in  the  case  of a life insurance
12        company, for tax years ending on and after  December  31,
13        1994,  shall  mean  the  gross  investment income for the
14        taxable year.

15        (c)  Trusts and estates.
16             (1)  In general.  In the case of a trust or  estate,
17        base  income  means  an  amount  equal  to the taxpayer's
18        taxable income  for  the  taxable  year  as  modified  by
19        paragraph (2).
20             (2)  Modifications.   Subject  to  the provisions of
21        paragraph  (3),  the  taxable  income  referred   to   in
22        paragraph (1) shall be modified by adding thereto the sum
23        of the following amounts:
24                  (A)  An  amount  equal  to  all amounts paid or
25             accrued to the taxpayer  as  interest  or  dividends
26             during  the taxable year to the extent excluded from
27             gross income in the computation of taxable income;
28                  (B)  In the case of (i) an estate, $600; (ii) a
29             trust which,  under  its  governing  instrument,  is
30             required  to distribute all of its income currently,
31             $300; and (iii) any other trust, $100, but  in  each
32             such  case,  only  to  the  extent  such  amount was
33             deducted in the computation of taxable income;
34                  (C)  An amount  equal  to  the  amount  of  tax
 
                            -24-     LRB093 10725 SJM 11113 b
 1             imposed  by  this  Act  to  the extent deducted from
 2             gross income in the computation  of  taxable  income
 3             for the taxable year;
 4                  (D)  The  amount  of  any  net  operating  loss
 5             deduction taken in arriving at taxable income, other
 6             than  a  net  operating  loss carried forward from a
 7             taxable year ending prior to December 31, 1986;
 8                  (E)  For taxable years in which a net operating
 9             loss carryback or carryforward from a  taxable  year
10             ending  prior  to December 31, 1986 is an element of
11             taxable income under paragraph (1) of subsection (e)
12             or subparagraph (E) of paragraph (2)  of  subsection
13             (e),  the  amount  by  which  addition modifications
14             other than those provided by this  subparagraph  (E)
15             exceeded  subtraction  modifications in such taxable
16             year, with the following limitations applied in  the
17             order that they are listed:
18                       (i)  the addition modification relating to
19                  the  net operating loss carried back or forward
20                  to the  taxable  year  from  any  taxable  year
21                  ending  prior  to  December  31,  1986 shall be
22                  reduced by the amount of addition  modification
23                  under  this  subparagraph  (E) which related to
24                  that net operating loss  and  which  was  taken
25                  into  account in calculating the base income of
26                  an earlier taxable year, and
27                       (ii)  the addition  modification  relating
28                  to  the  net  operating  loss  carried  back or
29                  forward to the taxable year  from  any  taxable
30                  year  ending  prior  to December 31, 1986 shall
31                  not exceed the  amount  of  such  carryback  or
32                  carryforward;
33                  For  taxable  years  in  which  there  is a net
34             operating loss carryback or carryforward  from  more
 
                            -25-     LRB093 10725 SJM 11113 b
 1             than one other taxable year ending prior to December
 2             31, 1986, the addition modification provided in this
 3             subparagraph  (E)  shall  be  the sum of the amounts
 4             computed   independently   under    the    preceding
 5             provisions  of  this  subparagraph (E) for each such
 6             taxable year;
 7                  (F)  For  taxable  years  ending  on  or  after
 8             January 1, 1989, an amount equal to the tax deducted
 9             pursuant to Section 164 of the Internal Revenue Code
10             if the trust or estate is claiming the same tax  for
11             purposes  of  the  Illinois foreign tax credit under
12             Section 601 of this Act;
13                  (G)  An amount  equal  to  the  amount  of  the
14             capital  gain deduction allowable under the Internal
15             Revenue Code, to  the  extent  deducted  from  gross
16             income in the computation of taxable income;
17                  (G-5)  For  taxable years ending after December
18             31,  1997,  an  amount   equal   to   any   eligible
19             remediation  costs that the trust or estate deducted
20             in computing adjusted gross income and for which the
21             trust or estate claims a credit under subsection (l)
22             of Section 201;
23                  (G-10)  For taxable years 2001 and  thereafter,
24             an  amount equal to the bonus depreciation deduction
25             (30%  of  the  adjusted  basis  of   the   qualified
26             property) taken on the taxpayer's federal income tax
27             return  for the taxable year under subsection (k) of
28             Section 168 of the Internal Revenue Code; and
29                  (G-11)  If the taxpayer reports a capital  gain
30             or  loss on the taxpayer's federal income tax return
31             for the taxable year based on a sale or transfer  of
32             property  for which the taxpayer was required in any
33             taxable year to make an addition modification  under
34             subparagraph  (G-10),  then  an  amount equal to the
 
                            -26-     LRB093 10725 SJM 11113 b
 1             aggregate amount of  the  deductions  taken  in  all
 2             taxable years under subparagraph (R) with respect to
 3             that property.;
 4                  The  taxpayer  is required to make the addition
 5             modification under this subparagraph only once  with
 6             respect to any one piece of property;
 7        and  by  deducting  from the total so obtained the sum of
 8        the following amounts:
 9                  (H)  An amount equal to all amounts included in
10             such total pursuant to the  provisions  of  Sections
11             402(a),  402(c),  403(a), 403(b), 406(a), 407(a) and
12             408 of the Internal Revenue Code or included in such
13             total as distributions under the provisions  of  any
14             retirement  or  disability plan for employees of any
15             governmental agency or unit, or retirement  payments
16             to  retired partners, which payments are excluded in
17             computing  net  earnings  from  self  employment  by
18             Section  1402  of  the  Internal  Revenue  Code  and
19             regulations adopted pursuant thereto;
20                  (I)  The valuation limitation amount;
21                  (J)  An amount equal to the amount of  any  tax
22             imposed  by  this  Act  which  was  refunded  to the
23             taxpayer and included in such total for the  taxable
24             year;
25                  (K)  An amount equal to all amounts included in
26             taxable  income  as  modified  by subparagraphs (A),
27             (B), (C), (D), (E), (F) and  (G)  which  are  exempt
28             from  taxation by this State either by reason of its
29             statutes  or  Constitution  or  by  reason  of   the
30             Constitution,  treaties  or  statutes  of the United
31             States; provided that, in the case of any statute of
32             this State that exempts income derived from bonds or
33             other obligations from the tax  imposed  under  this
34             Act,  the  amount exempted shall be the interest net
 
                            -27-     LRB093 10725 SJM 11113 b
 1             of bond premium amortization;
 2                  (L)  With  the   exception   of   any   amounts
 3             subtracted  under  subparagraph (K), an amount equal
 4             to the sum of all amounts disallowed  as  deductions
 5             by  (i)  Sections  171(a)  (2)  and 265(a)(2) of the
 6             Internal Revenue Code, as now or hereafter  amended,
 7             and  all  amounts  of expenses allocable to interest
 8             and disallowed as deductions by  Section  265(1)  of
 9             the  Internal  Revenue  Code  of  1954,  as  now  or
10             hereafter amended; and (ii) for taxable years ending
11             on  or  after  August  13, 1999, Sections 171(a)(2),
12             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
13             Revenue Code; the provisions  of  this  subparagraph
14             are exempt from the provisions of Section 250;
15                  (M)  An   amount   equal   to  those  dividends
16             included  in  such  total  which  were  paid  by   a
17             corporation which conducts business operations in an
18             Enterprise  Zone or zones created under the Illinois
19             Enterprise Zone Act and conducts  substantially  all
20             of its operations in an Enterprise Zone or Zones;
21                  (N)  An  amount  equal to any contribution made
22             to a job training project  established  pursuant  to
23             the Tax Increment Allocation Redevelopment Act;
24                  (O)  An   amount   equal   to  those  dividends
25             included  in  such  total  that  were  paid   by   a
26             corporation  that  conducts business operations in a
27             federally designated Foreign Trade Zone or  Sub-Zone
28             and  that  is  designated  a  High  Impact  Business
29             located   in   Illinois;   provided  that  dividends
30             eligible for the deduction provided in  subparagraph
31             (M) of paragraph (2) of this subsection shall not be
32             eligible  for  the  deduction  provided  under  this
33             subparagraph (O);
34                  (P)  An  amount  equal  to  the  amount  of the
 
                            -28-     LRB093 10725 SJM 11113 b
 1             deduction used to compute  the  federal  income  tax
 2             credit  for  restoration of substantial amounts held
 3             under claim of right for the taxable  year  pursuant
 4             to  Section  1341  of  the  Internal Revenue Code of
 5             1986;
 6                  (Q)  For taxable year 1999 and  thereafter,  an
 7             amount equal to the amount of any (i) distributions,
 8             to the extent includible in gross income for federal
 9             income tax purposes, made to the taxpayer because of
10             his  or  her  status  as a victim of persecution for
11             racial or religious reasons by Nazi Germany  or  any
12             other  Axis  regime  or as an heir of the victim and
13             (ii) items of income, to the  extent  includible  in
14             gross   income  for  federal  income  tax  purposes,
15             attributable to, derived from or in any way  related
16             to  assets  stolen  from,  hidden from, or otherwise
17             lost to  a  victim  of  persecution  for  racial  or
18             religious  reasons by Nazi Germany or any other Axis
19             regime immediately prior to, during, and immediately
20             after World War II, including, but not  limited  to,
21             interest  on  the  proceeds  receivable as insurance
22             under policies issued to a victim of persecution for
23             racial or religious reasons by Nazi Germany  or  any
24             other  Axis  regime  by European insurance companies
25             immediately  prior  to  and  during  World  War  II;
26             provided, however,  this  subtraction  from  federal
27             adjusted  gross  income  does  not  apply  to assets
28             acquired with such assets or with the proceeds  from
29             the  sale  of  such  assets; provided, further, this
30             paragraph shall only apply to a taxpayer who was the
31             first recipient of such assets after their  recovery
32             and  who  is  a victim of  persecution for racial or
33             religious reasons by Nazi Germany or any other  Axis
34             regime  or  as an heir of the victim.  The amount of
 
                            -29-     LRB093 10725 SJM 11113 b
 1             and  the  eligibility  for  any  public  assistance,
 2             benefit, or similar entitlement is not  affected  by
 3             the   inclusion  of  items  (i)  and  (ii)  of  this
 4             paragraph in gross income  for  federal  income  tax
 5             purposes.   This   paragraph   is  exempt  from  the
 6             provisions of Section 250;
 7                  (R)  For taxable years 2001 and thereafter, for
 8             the taxable year in  which  the  bonus  depreciation
 9             deduction   (30%   of  the  adjusted  basis  of  the
10             qualified  property)  is  taken  on  the  taxpayer's
11             federal income tax return under  subsection  (k)  of
12             Section  168  of  the  Internal Revenue Code and for
13             each applicable taxable year thereafter,  an  amount
14             equal to "x", where:
15                       (1)  "y"   equals   the   amount   of  the
16                  depreciation deduction taken  for  the  taxable
17                  year  on  the  taxpayer's  federal  income  tax
18                  return   on   property   for  which  the  bonus
19                  depreciation deduction  (30%  of  the  adjusted
20                  basis  of  the qualified property) was taken in
21                  any year under subsection (k) of Section 168 of
22                  the Internal Revenue Code,  but  not  including
23                  the bonus depreciation deduction; and
24                       (2)  "x"  equals  "y" multiplied by 30 and
25                  then  divided  by  70  (or  "y"  multiplied  by
26                  0.429).
27                  The  aggregate  amount  deducted   under   this
28             subparagraph  in all taxable years for any one piece
29             of property may not exceed the amount of  the  bonus
30             depreciation deduction (30% of the adjusted basis of
31             the  qualified  property)  taken on that property on
32             the  taxpayer's  federal  income  tax  return  under
33             subsection  (k)  of  Section  168  of  the  Internal
34             Revenue Code; and
 
                            -30-     LRB093 10725 SJM 11113 b
 1                  (S)  If the taxpayer reports a capital gain  or
 2             loss on the taxpayer's federal income tax return for
 3             the  taxable  year  based  on  a sale or transfer of
 4             property for which the taxpayer was required in  any
 5             taxable  year to make an addition modification under
 6             subparagraph (G-10), then an amount  equal  to  that
 7             addition modification.
 8                  The  taxpayer  is allowed to take the deduction
 9             under this subparagraph only once  with  respect  to
10             any one piece of property.
11             (3)  Limitation.   The  amount  of  any modification
12        otherwise required under  this  subsection  shall,  under
13        regulations  prescribed by the Department, be adjusted by
14        any amounts included therein which  were  properly  paid,
15        credited,  or  required to be distributed, or permanently
16        set aside for charitable purposes pursuant   to  Internal
17        Revenue Code Section 642(c) during the taxable year.

18        (d)  Partnerships.
19             (1)  In  general. In the case of a partnership, base
20        income means an amount equal to  the  taxpayer's  taxable
21        income for the taxable year as modified by paragraph (2).
22             (2)  Modifications.  The  taxable income referred to
23        in paragraph (1) shall be modified by adding thereto  the
24        sum of the following amounts:
25                  (A)  An  amount  equal  to  all amounts paid or
26             accrued to the taxpayer  as  interest  or  dividends
27             during  the taxable year to the extent excluded from
28             gross income in the computation of taxable income;
29                  (B)  An amount  equal  to  the  amount  of  tax
30             imposed  by  this  Act  to  the extent deducted from
31             gross income for the taxable year;
32                  (C)  The amount of deductions  allowed  to  the
33             partnership  pursuant  to  Section  707  (c)  of the
34             Internal Revenue Code  in  calculating  its  taxable
 
                            -31-     LRB093 10725 SJM 11113 b
 1             income;
 2                  (D)  An  amount  equal  to  the  amount  of the
 3             capital gain deduction allowable under the  Internal
 4             Revenue  Code,  to  the  extent  deducted from gross
 5             income in the computation of taxable income;
 6                  (D-5)  For taxable years 2001  and  thereafter,
 7             an  amount equal to the bonus depreciation deduction
 8             (30%  of  the  adjusted  basis  of   the   qualified
 9             property) taken on the taxpayer's federal income tax
10             return  for the taxable year under subsection (k) of
11             Section 168 of the Internal Revenue Code; and
12                  (D-6)  If the taxpayer reports a  capital  gain
13             or  loss on the taxpayer's federal income tax return
14             for the taxable year based on a sale or transfer  of
15             property  for which the taxpayer was required in any
16             taxable year to make an addition modification  under
17             subparagraph  (D-5),  then  an  amount  equal to the
18             aggregate amount of  the  deductions  taken  in  all
19             taxable years under subparagraph (O) with respect to
20             that property.;
21                  The  taxpayer  is required to make the addition
22             modification under this subparagraph only once  with
23             respect to any one piece of property;
24        and by deducting from the total so obtained the following
25        amounts:
26                  (E)  The valuation limitation amount;
27                  (F)  An  amount  equal to the amount of any tax
28             imposed by  this  Act  which  was  refunded  to  the
29             taxpayer  and included in such total for the taxable
30             year;
31                  (G)  An amount equal to all amounts included in
32             taxable income as  modified  by  subparagraphs  (A),
33             (B),  (C)  and (D) which are exempt from taxation by
34             this State either  by  reason  of  its  statutes  or
 
                            -32-     LRB093 10725 SJM 11113 b
 1             Constitution  or  by  reason  of  the  Constitution,
 2             treaties  or statutes of the United States; provided
 3             that, in the case of any statute of this State  that
 4             exempts   income   derived   from   bonds  or  other
 5             obligations from the tax imposed under this Act, the
 6             amount exempted shall be the interest  net  of  bond
 7             premium amortization;
 8                  (H)  Any   income   of  the  partnership  which
 9             constitutes personal service income  as  defined  in
10             Section  1348  (b)  (1) of the Internal Revenue Code
11             (as in effect December 31,  1981)  or  a  reasonable
12             allowance  for  compensation  paid  or  accrued  for
13             services  rendered  by  partners to the partnership,
14             whichever is greater;
15                  (I)  An amount equal to all amounts  of  income
16             distributable  to  an entity subject to the Personal
17             Property  Tax  Replacement  Income  Tax  imposed  by
18             subsections (c) and (d) of Section 201 of  this  Act
19             including  amounts  distributable  to  organizations
20             exempt  from federal income tax by reason of Section
21             501(a) of the Internal Revenue Code;
22                  (J)  With  the   exception   of   any   amounts
23             subtracted  under  subparagraph (G), an amount equal
24             to the sum of all amounts disallowed  as  deductions
25             by  (i)  Sections  171(a)  (2),  and  265(2)  of the
26             Internal Revenue Code of 1954, as now  or  hereafter
27             amended,  and  all  amounts of expenses allocable to
28             interest and disallowed  as  deductions  by  Section
29             265(1)  of  the  Internal  Revenue  Code,  as now or
30             hereafter amended; and (ii) for taxable years ending
31             on or after August  13,  1999,  Sections  171(a)(2),
32             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
33             Revenue  Code;  the  provisions of this subparagraph
34             are exempt from the provisions of Section 250;
 
                            -33-     LRB093 10725 SJM 11113 b
 1                  (K)  An  amount  equal   to   those   dividends
 2             included   in  such  total  which  were  paid  by  a
 3             corporation which conducts business operations in an
 4             Enterprise Zone or zones created under the  Illinois
 5             Enterprise  Zone  Act,  enacted  by the 82nd General
 6             Assembly, and  conducts  substantially  all  of  its
 7             operations in an Enterprise Zone or Zones;
 8                  (L)  An  amount  equal to any contribution made
 9             to a job training project  established  pursuant  to
10             the   Real   Property   Tax   Increment   Allocation
11             Redevelopment Act;
12                  (M)  An   amount   equal   to  those  dividends
13             included  in  such  total  that  were  paid   by   a
14             corporation  that  conducts business operations in a
15             federally designated Foreign Trade Zone or  Sub-Zone
16             and  that  is  designated  a  High  Impact  Business
17             located   in   Illinois;   provided  that  dividends
18             eligible for the deduction provided in  subparagraph
19             (K) of paragraph (2) of this subsection shall not be
20             eligible  for  the  deduction  provided  under  this
21             subparagraph (M);
22                  (N)  An  amount  equal  to  the  amount  of the
23             deduction used to compute  the  federal  income  tax
24             credit  for  restoration of substantial amounts held
25             under claim of right for the taxable  year  pursuant
26             to  Section  1341  of  the  Internal Revenue Code of
27             1986;
28                  (O)  For taxable years 2001 and thereafter, for
29             the taxable year in  which  the  bonus  depreciation
30             deduction   (30%   of  the  adjusted  basis  of  the
31             qualified  property)  is  taken  on  the  taxpayer's
32             federal income tax return under  subsection  (k)  of
33             Section  168  of  the  Internal Revenue Code and for
34             each applicable taxable year thereafter,  an  amount
 
                            -34-     LRB093 10725 SJM 11113 b
 1             equal to "x", where:
 2                       (1)  "y"   equals   the   amount   of  the
 3                  depreciation deduction taken  for  the  taxable
 4                  year  on  the  taxpayer's  federal  income  tax
 5                  return   on   property   for  which  the  bonus
 6                  depreciation deduction  (30%  of  the  adjusted
 7                  basis  of  the qualified property) was taken in
 8                  any year under subsection (k) of Section 168 of
 9                  the Internal Revenue Code,  but  not  including
10                  the bonus depreciation deduction; and
11                       (2)  "x"  equals  "y" multiplied by 30 and
12                  then  divided  by  70  (or  "y"  multiplied  by
13                  0.429).
14                  The  aggregate  amount  deducted   under   this
15             subparagraph  in all taxable years for any one piece
16             of property may not exceed the amount of  the  bonus
17             depreciation deduction (30% of the adjusted basis of
18             the  qualified  property)  taken on that property on
19             the  taxpayer's  federal  income  tax  return  under
20             subsection  (k)  of  Section  168  of  the  Internal
21             Revenue Code; and
22                  (P)  If the taxpayer reports a capital gain  or
23             loss on the taxpayer's federal income tax return for
24             the  taxable  year  based  on  a sale or transfer of
25             property for which the taxpayer was required in  any
26             taxable  year to make an addition modification under
27             subparagraph (D-5), then an  amount  equal  to  that
28             addition modification.
29                  The  taxpayer  is allowed to take the deduction
30             under this subparagraph only once  with  respect  to
31             any one piece of property.

32        (e)  Gross income; adjusted gross income; taxable income.
33             (1)  In  general.   Subject  to  the  provisions  of
34        paragraph  (2)  and  subsection  (b) (3), for purposes of
 
                            -35-     LRB093 10725 SJM 11113 b
 1        this Section  and  Section  803(e),  a  taxpayer's  gross
 2        income,  adjusted gross income, or taxable income for the
 3        taxable year shall  mean  the  amount  of  gross  income,
 4        adjusted   gross   income   or  taxable  income  properly
 5        reportable  for  federal  income  tax  purposes  for  the
 6        taxable year under the provisions of the Internal Revenue
 7        Code. Taxable income may be less than zero. However,  for
 8        taxable  years  ending on or after December 31, 1986, net
 9        operating loss carryforwards from  taxable  years  ending
10        prior  to  December  31,  1986, may not exceed the sum of
11        federal taxable income for the taxable  year  before  net
12        operating  loss  deduction,  plus  the excess of addition
13        modifications  over  subtraction  modifications  for  the
14        taxable year.  For taxable years ending prior to December
15        31, 1986, taxable income may never be an amount in excess
16        of the net operating loss for the taxable year as defined
17        in subsections (c) and (d) of Section 172 of the Internal
18        Revenue Code, provided that  when  taxable  income  of  a
19        corporation  (other  than  a  Subchapter  S corporation),
20        trust,  or  estate  is  less  than  zero   and   addition
21        modifications,  other than those provided by subparagraph
22        (E) of paragraph (2) of subsection (b)  for  corporations
23        or  subparagraph  (E)  of paragraph (2) of subsection (c)
24        for trusts and estates, exceed subtraction modifications,
25        an  addition  modification  must  be  made  under   those
26        subparagraphs  for  any  other  taxable year to which the
27        taxable income less than zero  (net  operating  loss)  is
28        applied under Section 172 of the Internal Revenue Code or
29        under   subparagraph   (E)   of  paragraph  (2)  of  this
30        subsection (e) applied in conjunction with Section 172 of
31        the Internal Revenue Code.
32             (2)  Special rule.  For purposes of paragraph (1) of
33        this subsection, the taxable income  properly  reportable
34        for federal income tax purposes shall mean:
 
                            -36-     LRB093 10725 SJM 11113 b
 1                  (A)  Certain  life insurance companies.  In the
 2             case of a life insurance company subject to the  tax
 3             imposed by Section 801 of the Internal Revenue Code,
 4             life  insurance  company  taxable  income,  plus the
 5             amount of distribution  from  pre-1984  policyholder
 6             surplus accounts as calculated under Section 815a of
 7             the Internal Revenue Code;
 8                  (B)  Certain other insurance companies.  In the
 9             case  of  mutual  insurance companies subject to the
10             tax imposed by Section 831 of the  Internal  Revenue
11             Code, insurance company taxable income;
12                  (C)  Regulated  investment  companies.   In the
13             case of a regulated investment  company  subject  to
14             the  tax  imposed  by  Section  852  of the Internal
15             Revenue Code, investment company taxable income;
16                  (D)  Real estate  investment  trusts.   In  the
17             case  of  a  real estate investment trust subject to
18             the tax imposed  by  Section  857  of  the  Internal
19             Revenue  Code,  real estate investment trust taxable
20             income;
21                  (E)  Consolidated corporations.  In the case of
22             a corporation which is a  member  of  an  affiliated
23             group  of  corporations filing a consolidated income
24             tax return for the taxable year for  federal  income
25             tax  purposes,  taxable income determined as if such
26             corporation had filed a separate return for  federal
27             income  tax  purposes  for the taxable year and each
28             preceding taxable year for which it was a member  of
29             an   affiliated   group.   For   purposes   of  this
30             subparagraph, the taxpayer's separate taxable income
31             shall be determined as if the election  provided  by
32             Section  243(b) (2) of the Internal Revenue Code had
33             been in effect for all such years;
34                  (F)  Cooperatives.    In   the   case   of    a
 
                            -37-     LRB093 10725 SJM 11113 b
 1             cooperative  corporation or association, the taxable
 2             income of such organization determined in accordance
 3             with the provisions of Section 1381 through 1388  of
 4             the Internal Revenue Code;
 5                  (G)  Subchapter  S  corporations.   In the case
 6             of: (i) a Subchapter S corporation for  which  there
 7             is  in effect an election for the taxable year under
 8             Section 1362  of  the  Internal  Revenue  Code,  the
 9             taxable  income  of  such  corporation determined in
10             accordance with  Section  1363(b)  of  the  Internal
11             Revenue  Code, except that taxable income shall take
12             into account  those  items  which  are  required  by
13             Section  1363(b)(1)  of the Internal Revenue Code to
14             be  separately  stated;  and  (ii)  a  Subchapter  S
15             corporation for which there is in effect  a  federal
16             election  to  opt  out  of  the  provisions  of  the
17             Subchapter  S  Revision Act of 1982 and have applied
18             instead the prior federal Subchapter S rules  as  in
19             effect  on  July 1, 1982, the taxable income of such
20             corporation  determined  in  accordance   with   the
21             federal  Subchapter  S rules as in effect on July 1,
22             1982; and
23                  (H)  Partnerships.    In   the   case   of    a
24             partnership, taxable income determined in accordance
25             with  Section  703  of  the  Internal  Revenue Code,
26             except that taxable income shall take  into  account
27             those  items which are required by Section 703(a)(1)
28             to be separately stated but  which  would  be  taken
29             into  account  by  an  individual in calculating his
30             taxable income.

31        (f)  Valuation limitation amount.
32             (1)  In general.  The  valuation  limitation  amount
33        referred  to  in subsections (a) (2) (G), (c) (2) (I) and
34        (d)(2) (E) is an amount equal to:
 
                            -38-     LRB093 10725 SJM 11113 b
 1                  (A)  The  sum  of  the   pre-August   1,   1969
 2             appreciation  amounts  (to  the extent consisting of
 3             gain reportable under the provisions of Section 1245
 4             or 1250  of  the  Internal  Revenue  Code)  for  all
 5             property  in respect of which such gain was reported
 6             for the taxable year; plus
 7                  (B)  The  lesser  of  (i)  the   sum   of   the
 8             pre-August  1,  1969  appreciation  amounts  (to the
 9             extent consisting of capital gain) for all  property
10             in  respect  of  which  such  gain  was reported for
11             federal income tax purposes for the taxable year, or
12             (ii) the net capital  gain  for  the  taxable  year,
13             reduced  in  either  case by any amount of such gain
14             included in the amount determined  under  subsection
15             (a) (2) (F) or (c) (2) (H).
16             (2)  Pre-August 1, 1969 appreciation amount.
17                  (A)  If  the  fair  market  value  of  property
18             referred   to   in   paragraph   (1)   was   readily
19             ascertainable  on  August 1, 1969, the pre-August 1,
20             1969 appreciation amount for such  property  is  the
21             lesser  of  (i) the excess of such fair market value
22             over the taxpayer's basis (for determining gain) for
23             such property on that  date  (determined  under  the
24             Internal Revenue Code as in effect on that date), or
25             (ii)  the  total  gain  realized  and reportable for
26             federal income tax purposes in respect of the  sale,
27             exchange or other disposition of such property.
28                  (B)  If  the  fair  market  value  of  property
29             referred   to  in  paragraph  (1)  was  not  readily
30             ascertainable on August 1, 1969, the  pre-August  1,
31             1969  appreciation  amount for such property is that
32             amount which bears the same ratio to the total  gain
33             reported  in  respect  of  the  property for federal
34             income tax purposes for the  taxable  year,  as  the
 
                            -39-     LRB093 10725 SJM 11113 b
 1             number  of  full calendar months in that part of the
 2             taxpayer's holding period for  the  property  ending
 3             July  31,  1969 bears to the number of full calendar
 4             months in the taxpayer's entire holding  period  for
 5             the property.
 6                  (C)  The   Department   shall   prescribe  such
 7             regulations as may be necessary  to  carry  out  the
 8             purposes of this paragraph.

 9        (g)  Double  deductions.   Unless  specifically  provided
10    otherwise, nothing in this Section shall permit the same item
11    to be deducted more than once.

12        (h)  Legislative intention.  Except as expressly provided
13    by   this   Section   there  shall  be  no  modifications  or
14    limitations on the amounts of income, gain, loss or deduction
15    taken into account  in  determining  gross  income,  adjusted
16    gross  income  or  taxable  income  for  federal  income  tax
17    purposes for the taxable year, or in the amount of such items
18    entering  into  the computation of base income and net income
19    under this Act for such taxable year, whether in  respect  of
20    property values as of August 1, 1969 or otherwise.
21    (Source:  P.A.  91-192,  eff.  7-20-99; 91-205, eff. 7-20-99;
22    91-357, eff. 7-29-99;  91-541,  eff.  8-13-99;  91-676,  eff.
23    12-23-99;  91-845,  eff. 6-22-00; 91-913, eff. 1-1-01; 92-16,
24    eff. 6-28-01; 92-244,  eff.  8-3-01;  92-439,  eff.  8-17-01;
25    92-603,  eff.  6-28-02;  92-626,  eff.  7-11-02; 92-651, eff.
26    7-11-02; 92-846, eff. 8-23-02; revised 11-15-02.)

27        Section 15-15.  The  Property  Tax  Code  is  amended  by
28    changing  Sections  18-255,  20-15,  and  21-30 and by adding
29    Section 18-178 as follows:

30        (35 ILCS 200/18-178 new)
31        Sec.   18-178.  Educational   purposes   tax   abatement.
 
                            -40-     LRB093 10725 SJM 11113 b
 1    Beginning with taxes levied for 2003 (payable in  2004),  the
 2    county   clerk   must   determine  the  final  extension  for
 3    educational purposes for all taxable  property  in  a  school
 4    district located in the county or for the taxable property of
 5    that  part of a school district located in the county, taking
 6    into account the maximum rate, levy, and extension authorized
 7    under the Property Tax Extension Limitation Law, the Truth in
 8    Taxation Law, and any other statute. The  county  clerk  must
 9    then  abate  the  extension for educational purposes for each
10    school district or part of a school district in the county in
11    the amount of the school district property tax  relief  grant
12    certified  to  the  county  clerk for that school district or
13    part of a school district by the Department of Revenue  under
14    Section  6z-59  of  the  State  Finance  Act.  When the final
15    extension for educational purposes has  been  determined  and
16    abated,  the  county  clerk  must  notify  the  Department of
17    Revenue.
18        The county clerk must determine the reduced amount of the
19    tax for educational purposes  to  be  billed  by  the  county
20    collector  and  paid  by  each  taxpayer  in  a  given school
21    district by  re-calculating  the  tax  rate  for  educational
22    purposes  for  that  school  district  based  on  the reduced
23    extension amount  after  abatement.  This  reduced  extension
24    amount  shall  be used only for determining the amount of the
25    tax bill. The extension amount for  educational  purposes  as
26    originally  calculated before abatement is the official final
27    extension for educational purposes and must be used  for  all
28    other purposes, including determining the maximum rate, levy,
29    and  extension  authorized  under  the Property Tax Extension
30    Limitation Law, the Truth in  Taxation  Law,  and  any  other
31    statute  and  the maximum amount of tax anticipation warrants
32    under Section 17-16 of the School Code.

33        (35 ILCS 200/18-255)
 
                            -41-     LRB093 10725 SJM 11113 b
 1        Sec. 18-255.  Abstract  of  assessments  and  extensions.
 2    When  the  collector's  books are completed, the county clerk
 3    shall  make  a  complete  statement  of  the  assessment  and
 4    extensions,  in  conformity  to  the  instructions   of   the
 5    Department.  The  clerk  shall  certify  the statement to the
 6    Department. Beginning with the 2003 levy year, the Department
 7    shall require the statement to include a separate listing  of
 8    the extensions subject to abatement under Section 18-178.
 9    (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)

10        (35 ILCS 200/20-15)
11        Sec.  20-15.   Information on bill or separate statement.
12    The amount of tax  due  and  rates  shown  on  the  tax  bill
13    pursuant  to this Section shall be net of any abatement under
14    Section 18-178.  There shall be printed on each bill, or on a
15    separate slip which shall be mailed with the bill:
16             (a)  a statement itemizing the rate at  which  taxes
17        have  been  extended  for each of the taxing districts in
18        the county in whose district the property is located, and
19        in those counties utilizing  electronic  data  processing
20        equipment  the  dollar  amount of tax due from the person
21        assessed allocable to each  of  those  taxing  districts,
22        including  a  separate  statement of the dollar amount of
23        tax due which is allocable to  a  tax  levied  under  the
24        Illinois  Local Library Act or to any other tax levied by
25        a municipality or township for public library purposes,
26             (b)  a separate statement for  each  of  the  taxing
27        districts  of  the  dollar  amount  of  tax  due which is
28        allocable to a tax levied under the Illinois Pension Code
29        or to any other tax levied by a municipality or  township
30        for public pension or retirement purposes,
31             (c)  the total tax rate,
32             (d)  the total amount of tax due, and
33             (e)  the  amount  by which the total tax and the tax
 
                            -42-     LRB093 10725 SJM 11113 b
 1        allocable  to  each  taxing  district  differs  from  the
 2        taxpayer's last prior tax bill, and
 3             (f)  the amount of tax abated under  Section  18-178
 4        labeled "Your School Tax Refund".
 5        The  county treasurer shall ensure that only those taxing
 6    districts in which a parcel of property is located  shall  be
 7    listed on the bill for that property.
 8        In all counties the statement shall also provide:
 9             (1)  the  property  index  number  or other suitable
10        description,
11             (2)  the assessment of the property,
12             (3)  the equalization factors imposed by the  county
13        and by the Department, and
14             (4)  the  equalized  assessment  resulting  from the
15        application of the  equalization  factors  to  the  basic
16        assessment.
17        In  all  counties  which  do  not  classify  property for
18    purposes of taxation, for property on which a  single  family
19    residence  is  situated  the  statement  shall also include a
20    statement to reflect the fair cash value determined  for  the
21    property.   In  all  counties  which  classify  property  for
22    purposes of taxation in accordance with Section 4 of  Article
23    IX  of  the Illinois Constitution, for parcels of residential
24    property  in  the  lowest   assessment   classification   the
25    statement  shall also include a statement to reflect the fair
26    cash value determined for the property.
27        In all counties, the statement shall include  information
28    that  certain  taxpayers  may  be  eligible  for  the  Senior
29    Citizens   and  Disabled  Persons  Property  Tax  Relief  and
30    Pharmaceutical  Assistance  Act  and  that  applications  are
31    available from the Illinois Department of Revenue.
32        In  counties  which  use  the  estimated  or  accelerated
33    billing methods, these statements shall only be provided with
34    the final installment of taxes due, except that the statement
 
                            -43-     LRB093 10725 SJM 11113 b
 1    under item (f) shall be included with  both  installments  in
 2    those   counties   under  estimated  or  accelerated  billing
 3    methods, the first billing showing the amount  deducted  from
 4    the  first  installment,  and  the  final billing showing the
 5    total tax abated for the levy year under Section 18-178.  The
 6    provisions of this Section create a mandatory statutory duty.
 7    They  are  not merely directory or discretionary. The failure
 8    or neglect of the collector to mail the bill, or the  failure
 9    of  the  taxpayer  to  receive the bill, shall not affect the
10    validity of any tax, or the liability for the payment of  any
11    tax.
12    (Source: P.A. 91-699, eff. 1-1-01.)

13        (35 ILCS 200/21-30)
14        Sec.  21-30.  Accelerated  billing. Except as provided in
15    this Section and Section 21-40, in counties with 3,000,000 or
16    more inhabitants, by January 31 annually, estimated tax bills
17    setting out the first installment of property taxes  for  the
18    preceding  year,  payable in that year, shall be prepared and
19    mailed. The first installment of taxes on the  estimated  tax
20    bills  shall be computed at 50% of the total of each tax bill
21    before the abatement of taxes under Section  18-178  for  the
22    preceding  year,  less  an estimate of one half of the school
23    district property tax  relief  grant  for  the  current  year
24    determined based on information provided by the Department of
25    Revenue  and  any  other information available.  If, prior to
26    the preparation of the estimated tax bills, a certificate  of
27    error  has  been  either  approved  by  a  court on or before
28    November 30 of the preceding year or  certified  pursuant  to
29    Section 14-15 on or before November 30 of the preceding year,
30    then  the  first  installment  of  taxes on the estimated tax
31    bills shall be computed at 50% of the total taxes before  the
32    abatement  of  taxes  under  Section 18-178 for the preceding
33    year as corrected  by  the  certificate  of  error,  less  an
 
                            -44-     LRB093 10725 SJM 11113 b
 1    estimate  of  one  half  of  the school district property tax
 2    relief  grant  for  the  current  year  determined  based  on
 3    information provided by the Department  of  Revenue  and  any
 4    other  information available. By June 30 annually, actual tax
 5    bills shall be prepared and mailed. These bills shall set out
 6    total taxes due and the amount of estimated taxes  billed  in
 7    the  first  installment, and shall state the balance of taxes
 8    due for that year as represented  by  the  sum  derived  from
 9    subtracting  the  amount  of  the  first installment from the
10    total taxes due for that year.
11        The county board may provide by  ordinance,  in  counties
12    with 3,000,000 or more inhabitants, for taxes to be paid in 4
13    installments.   For  the levy year for which the ordinance is
14    first effective and each subsequent year, estimated tax bills
15    setting out the first, second, and third installment of taxes
16    for the preceding  year,  payable  in  that  year,  shall  be
17    prepared  and  mailed  not  later  than the date specified by
18    ordinance.  Each installment on estimated tax bills shall  be
19    computed  at  25%  of  the  total  of  each  tax bill for the
20    preceding year. By  the  date  specified  in  the  ordinance,
21    actual  tax  bills shall be prepared and mailed.  These bills
22    shall set out total taxes due and  the  amount  of  estimated
23    taxes billed in the first, second, and third installments and
24    shall  state  the  balance  of  taxes  due  for  that year as
25    represented by the sum derived from subtracting the amount of
26    the estimated installments from the total taxes due for  that
27    year.
28        The  county  board of any county with less than 3,000,000
29    inhabitants  may,  by  ordinance  or  resolution,  adopt   an
30    accelerated  method  of  tax  billing.  The  county board may
31    subsequently rescind the ordinance or resolution  and  revert
32    to the method otherwise provided for in this Code.
33        Taxes  levied  on homestead property in which a member of
34    the National Guard or reserves of the  armed  forces  of  the
 
                            -45-     LRB093 10725 SJM 11113 b
 1    United  States  who  was  called  to  active duty on or after
 2    August 1, 1990, and who has an ownership interest  shall  not
 3    be  deemed  delinquent  and  no  interest  shall accrue or be
 4    charged as a penalty on such taxes due and payable in 1991 or
 5    1992 until one year after that  member  returns  to  civilian
 6    status.
 7    (Source: P.A. 92-475, eff. 8-23-01.)