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1 | AN ACT concerning taxes.
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2 | Be it enacted by the People of the State of Illinois,
| ||||||
3 | represented in the General Assembly:
| ||||||
4 | Section 5. The Illinois Income Tax Act is amended by | ||||||
5 | changing Section 203 as follows:
| ||||||
6 | (35 ILCS 5/203) (from Ch. 120, par. 2-203)
| ||||||
7 | Sec. 203. Base income defined.
| ||||||
8 | (a) Individuals.
| ||||||
9 | (1) In general. In the case of an individual, base | ||||||
10 | income means an
amount equal to the taxpayer's adjusted | ||||||
11 | gross income for the taxable
year as modified by paragraph | ||||||
12 | (2).
| ||||||
13 | (2) Modifications. The adjusted gross income referred | ||||||
14 | to in
paragraph (1) shall be modified by adding thereto the | ||||||
15 | sum of the
following amounts:
| ||||||
16 | (A) An amount equal to all amounts paid or accrued | ||||||
17 | to the taxpayer
as interest or dividends during the | ||||||
18 | taxable year to the extent excluded
from gross income | ||||||
19 | in the computation of adjusted gross income, except | ||||||
20 | stock
dividends of qualified public utilities | ||||||
21 | described in Section 305(e) of the
Internal Revenue | ||||||
22 | Code;
| ||||||
23 | (B) An amount equal to the amount of tax imposed by | ||||||
24 | this Act to the
extent deducted from gross income in | ||||||
25 | the computation of adjusted gross
income for the | ||||||
26 | taxable year;
| ||||||
27 | (C) An amount equal to the amount received during | ||||||
28 | the taxable year
as a recovery or refund of real | ||||||
29 | property taxes paid with respect to the
taxpayer's | ||||||
30 | principal residence under the Revenue Act of
1939 and | ||||||
31 | for which a deduction was previously taken under | ||||||
32 | subparagraph (L) of
this paragraph (2) prior to July 1, |
| |||||||
| |||||||
1 | 1991, the retrospective application date of
Article 4 | ||||||
2 | of Public Act 87-17. In the case of multi-unit or | ||||||
3 | multi-use
structures and farm dwellings, the taxes on | ||||||
4 | the taxpayer's principal residence
shall be that | ||||||
5 | portion of the total taxes for the entire property | ||||||
6 | which is
attributable to such principal residence;
| ||||||
7 | (D) An amount equal to the amount of the capital | ||||||
8 | gain deduction
allowable under the Internal Revenue | ||||||
9 | Code, to the extent deducted from gross
income in the | ||||||
10 | computation of adjusted gross income;
| ||||||
11 | (D-5) An amount, to the extent not included in | ||||||
12 | adjusted gross income,
equal to the amount of money | ||||||
13 | withdrawn by the taxpayer in the taxable year from
a | ||||||
14 | medical care savings account and the interest earned on | ||||||
15 | the account in the
taxable year of a withdrawal | ||||||
16 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
17 | Care Savings Account Act or subsection (b) of Section | ||||||
18 | 20 of the
Medical Care Savings Account Act of 2000;
| ||||||
19 | (D-10) For taxable years ending after December 31, | ||||||
20 | 1997, an
amount equal to any eligible remediation costs | ||||||
21 | that the individual
deducted in computing adjusted | ||||||
22 | gross income and for which the
individual claims a | ||||||
23 | credit under subsection (l) of Section 201;
| ||||||
24 | (D-15) For taxable years 2001 and thereafter, an | ||||||
25 | amount equal to the
bonus depreciation deduction (30% | ||||||
26 | of the adjusted basis of the qualified
property) taken | ||||||
27 | on the taxpayer's federal income tax return for the | ||||||
28 | taxable
year under subsection (k) of Section 168 of the | ||||||
29 | Internal Revenue Code; and
| ||||||
30 | (D-16) If the taxpayer reports a capital gain or | ||||||
31 | loss on the
taxpayer's federal income tax return for | ||||||
32 | the taxable year based on a sale or
transfer of | ||||||
33 | property for which the taxpayer was required in any | ||||||
34 | taxable year to
make an addition modification under | ||||||
35 | subparagraph (D-15), then an amount equal
to the | ||||||
36 | aggregate amount of the deductions taken in all taxable
|
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| |||||||
1 | years under subparagraph (Z) with respect to that | ||||||
2 | property . ;
| ||||||
3 | The taxpayer is required to make the addition | ||||||
4 | modification under this
subparagraph
only once with | ||||||
5 | respect to any one piece of property ; . and
| ||||||
6 | (D-20)
(D-15) For taxable years beginning on or | ||||||
7 | after January 1,
2002, in
the
case of a distribution | ||||||
8 | from a qualified tuition program under Section 529 of
| ||||||
9 | the Internal Revenue Code, other than (i) a | ||||||
10 | distribution from a College Savings
Pool created under | ||||||
11 | Section 16.5 of the State Treasurer Act or (ii) a
| ||||||
12 | distribution from the Illinois Prepaid Tuition Trust | ||||||
13 | Fund, an amount equal to
the amount excluded from gross | ||||||
14 | income under Section 529(c)(3)(B);
| ||||||
15 | and by deducting from the total so obtained the
sum of the | ||||||
16 | following amounts:
| ||||||
17 | (E) For taxable years ending before December 31, | ||||||
18 | 2001,
any amount included in such total in respect of | ||||||
19 | any compensation
(including but not limited to any | ||||||
20 | compensation paid or accrued to a
serviceman while a | ||||||
21 | prisoner of war or missing in action) paid to a | ||||||
22 | resident
by reason of being on active duty in the Armed | ||||||
23 | Forces of the United States
and in respect of any | ||||||
24 | compensation paid or accrued to a resident who as a
| ||||||
25 | governmental employee was a prisoner of war or missing | ||||||
26 | in action, and in
respect of any compensation paid to a | ||||||
27 | resident in 1971 or thereafter for
annual training | ||||||
28 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
29 | United States Code as a member of the Illinois National | ||||||
30 | Guard.
For taxable years ending on or after December | ||||||
31 | 31, 2001, any amount included in
such total in respect | ||||||
32 | of any compensation (including but not limited to any
| ||||||
33 | compensation paid or accrued to a serviceman while a | ||||||
34 | prisoner of war or missing
in action) paid to a | ||||||
35 | resident by reason of being a member of any component | ||||||
36 | of
the Armed Forces of the United States and in respect |
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| |||||||
1 | of any compensation paid
or accrued to a resident who | ||||||
2 | as a governmental employee was a prisoner of war
or | ||||||
3 | missing in action, and in respect of any compensation | ||||||
4 | paid to a resident in
2001 or thereafter by reason of | ||||||
5 | being a member of the Illinois National Guard.
The | ||||||
6 | provisions of this amendatory Act of the 92nd General | ||||||
7 | Assembly are exempt
from the provisions of Section 250;
| ||||||
8 | (F) An amount equal to all amounts included in such | ||||||
9 | total pursuant
to the provisions of Sections 402(a), | ||||||
10 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
11 | Internal Revenue Code, or included in such total as
| ||||||
12 | distributions under the provisions of any retirement | ||||||
13 | or disability plan for
employees of any governmental | ||||||
14 | agency or unit, or retirement payments to
retired | ||||||
15 | partners, which payments are excluded in computing net | ||||||
16 | earnings
from self employment by Section 1402 of the | ||||||
17 | Internal Revenue Code and
regulations adopted pursuant | ||||||
18 | thereto;
| ||||||
19 | (G) The valuation limitation amount;
| ||||||
20 | (H) An amount equal to the amount of any tax | ||||||
21 | imposed by this Act
which was refunded to the taxpayer | ||||||
22 | and included in such total for the
taxable year;
| ||||||
23 | (I) An amount equal to all amounts included in such | ||||||
24 | total pursuant
to the provisions of Section 111 of the | ||||||
25 | Internal Revenue Code as a
recovery of items previously | ||||||
26 | deducted from adjusted gross income in the
computation | ||||||
27 | of taxable income;
| ||||||
28 | (J) An amount equal to those dividends included in | ||||||
29 | such total which were
paid by a corporation which | ||||||
30 | conducts business operations in an Enterprise
Zone or | ||||||
31 | zones created under the Illinois Enterprise Zone Act, | ||||||
32 | and conducts
substantially all of its operations in an | ||||||
33 | Enterprise Zone or zones;
| ||||||
34 | (K) An amount equal to those dividends included in | ||||||
35 | such total that
were paid by a corporation that | ||||||
36 | conducts business operations in a federally
designated |
| |||||||
| |||||||
1 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
2 | High Impact
Business located in Illinois; provided | ||||||
3 | that dividends eligible for the
deduction provided in | ||||||
4 | subparagraph (J) of paragraph (2) of this subsection
| ||||||
5 | shall not be eligible for the deduction provided under | ||||||
6 | this subparagraph
(K);
| ||||||
7 | (L) For taxable years ending after December 31, | ||||||
8 | 1983, an amount equal to
all social security benefits | ||||||
9 | and railroad retirement benefits included in
such | ||||||
10 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
11 | Revenue Code;
| ||||||
12 | (M) With the exception of any amounts subtracted | ||||||
13 | under subparagraph
(N), an amount equal to the sum of | ||||||
14 | all amounts disallowed as
deductions by (i) Sections | ||||||
15 | 171(a) (2), and 265(2) of the Internal Revenue Code
of | ||||||
16 | 1954, as now or hereafter amended, and all amounts of | ||||||
17 | expenses allocable
to interest and disallowed as | ||||||
18 | deductions by Section 265(1) of the Internal
Revenue | ||||||
19 | Code of 1954, as now or hereafter amended;
and (ii) for | ||||||
20 | taxable years
ending on or after August 13, 1999, | ||||||
21 | Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||||||
22 | the Internal Revenue Code; the provisions of this
| ||||||
23 | subparagraph are exempt from the provisions of Section | ||||||
24 | 250;
| ||||||
25 | (N) An amount equal to all amounts included in such | ||||||
26 | total which are
exempt from taxation by this State | ||||||
27 | either by reason of its statutes or
Constitution
or by | ||||||
28 | reason of the Constitution, treaties or statutes of the | ||||||
29 | United States;
provided that, in the case of any | ||||||
30 | statute of this State that exempts income
derived from | ||||||
31 | bonds or other obligations from the tax imposed under | ||||||
32 | this Act,
the amount exempted shall be the interest net | ||||||
33 | of bond premium amortization;
| ||||||
34 | (O) An amount equal to any contribution made to a | ||||||
35 | job training
project established pursuant to the Tax | ||||||
36 | Increment Allocation Redevelopment Act;
|
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| |||||||
1 | (P) An amount equal to the amount of the deduction | ||||||
2 | used to compute the
federal income tax credit for | ||||||
3 | restoration of substantial amounts held under
claim of | ||||||
4 | right for the taxable year pursuant to Section 1341 of | ||||||
5 | the
Internal Revenue Code of 1986;
| ||||||
6 | (Q) An amount equal to any amounts included in such | ||||||
7 | total, received by
the taxpayer as an acceleration in | ||||||
8 | the payment of life, endowment or annuity
benefits in | ||||||
9 | advance of the time they would otherwise be payable as | ||||||
10 | an indemnity
for a terminal illness;
| ||||||
11 | (R) An amount equal to the amount of any federal or | ||||||
12 | State bonus paid
to veterans of the Persian Gulf War;
| ||||||
13 | (S) An amount, to the extent included in adjusted | ||||||
14 | gross income, equal
to the amount of a contribution | ||||||
15 | made in the taxable year on behalf of the
taxpayer to a | ||||||
16 | medical care savings account established under the | ||||||
17 | Medical Care
Savings Account Act or the Medical Care | ||||||
18 | Savings Account Act of 2000 to the
extent the | ||||||
19 | contribution is accepted by the account
administrator | ||||||
20 | as provided in that Act;
| ||||||
21 | (T) An amount, to the extent included in adjusted | ||||||
22 | gross income, equal to
the amount of interest earned in | ||||||
23 | the taxable year on a medical care savings
account | ||||||
24 | established under the Medical Care Savings Account Act | ||||||
25 | or the Medical
Care Savings Account Act of 2000 on | ||||||
26 | behalf of the
taxpayer, other than interest added | ||||||
27 | pursuant to item (D-5) of this paragraph
(2);
| ||||||
28 | (U) For one taxable year beginning on or after | ||||||
29 | January 1,
1994, an
amount equal to the total amount of | ||||||
30 | tax imposed and paid under subsections (a)
and (b) of | ||||||
31 | Section 201 of this Act on grant amounts received by | ||||||
32 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
33 | Act during the taxpayer's taxable years
1992 and 1993;
| ||||||
34 | (V) Beginning with tax years ending on or after | ||||||
35 | December 31, 1995 and
ending with tax years ending on | ||||||
36 | or before December 31, 2004, an amount equal to
the |
| |||||||
| |||||||
1 | amount paid by a taxpayer who is a
self-employed | ||||||
2 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
3 | in a Subchapter S corporation for health insurance or | ||||||
4 | long-term
care insurance for that taxpayer or that | ||||||
5 | taxpayer's spouse or dependents, to
the extent that the | ||||||
6 | amount paid for that health insurance or long-term care
| ||||||
7 | insurance may be deducted under Section 213 of the | ||||||
8 | Internal Revenue Code of
1986, has not been deducted on | ||||||
9 | the federal income tax return of the taxpayer,
and does | ||||||
10 | not exceed the taxable income attributable to that | ||||||
11 | taxpayer's income,
self-employment income, or | ||||||
12 | Subchapter S corporation income; except that no
| ||||||
13 | deduction shall be allowed under this item (V) if the | ||||||
14 | taxpayer is eligible to
participate in any health | ||||||
15 | insurance or long-term care insurance plan of an
| ||||||
16 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
17 | amount of the health insurance and long-term care | ||||||
18 | insurance
subtracted under this item (V) shall be | ||||||
19 | determined by multiplying total
health insurance and | ||||||
20 | long-term care insurance premiums paid by the taxpayer
| ||||||
21 | times a number that represents the fractional | ||||||
22 | percentage of eligible medical
expenses under Section | ||||||
23 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
24 | deducted on the taxpayer's federal income tax return;
| ||||||
25 | (W) For taxable years beginning on or after January | ||||||
26 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
27 | gross income
in the taxable year from amounts converted | ||||||
28 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
29 | exempt from the provisions of Section
250;
| ||||||
30 | (X) For taxable year 1999 and thereafter, an amount | ||||||
31 | equal to the
amount of any (i) distributions, to the | ||||||
32 | extent includible in gross income for
federal income | ||||||
33 | tax purposes, made to the taxpayer because of his or | ||||||
34 | her status
as a victim of persecution for racial or | ||||||
35 | religious reasons by Nazi Germany or
any other Axis | ||||||
36 | regime or as an heir of the victim and (ii) items
of |
| |||||||
| |||||||
1 | income, to the extent
includible in gross income for | ||||||
2 | federal income tax purposes, attributable to,
derived | ||||||
3 | from or in any way related to assets stolen from, | ||||||
4 | hidden from, or
otherwise lost to a victim of
| ||||||
5 | persecution for racial or religious reasons by Nazi | ||||||
6 | Germany or any other Axis
regime immediately prior to, | ||||||
7 | during, and immediately after World War II,
including, | ||||||
8 | but
not limited to, interest on the proceeds receivable | ||||||
9 | as insurance
under policies issued to a victim of | ||||||
10 | persecution for racial or religious
reasons
by Nazi | ||||||
11 | Germany or any other Axis regime by European insurance | ||||||
12 | companies
immediately prior to and during World War II;
| ||||||
13 | provided, however, this subtraction from federal | ||||||
14 | adjusted gross income does not
apply to assets acquired | ||||||
15 | with such assets or with the proceeds from the sale of
| ||||||
16 | such assets; provided, further, this paragraph shall | ||||||
17 | only apply to a taxpayer
who was the first recipient of | ||||||
18 | such assets after their recovery and who is a
victim of | ||||||
19 | persecution for racial or religious reasons
by Nazi | ||||||
20 | Germany or any other Axis regime or as an heir of the | ||||||
21 | victim. The
amount of and the eligibility for any | ||||||
22 | public assistance, benefit, or
similar entitlement is | ||||||
23 | not affected by the inclusion of items (i) and (ii) of
| ||||||
24 | this paragraph in gross income for federal income tax | ||||||
25 | purposes.
This paragraph is exempt from the provisions | ||||||
26 | of Section 250;
| ||||||
27 | (Y) For taxable years beginning on or after January | ||||||
28 | 1, 2002,
moneys contributed in the taxable year to a | ||||||
29 | College Savings Pool account under
Section 16.5 of the | ||||||
30 | State Treasurer Act, except that amounts excluded from
| ||||||
31 | gross income under Section 529(c)(3) (C) (i) of the | ||||||
32 | Internal Revenue Code
shall not be considered moneys | ||||||
33 | contributed under this subparagraph (Y). This
| ||||||
34 | subparagraph (Y) is exempt from the provisions of | ||||||
35 | Section 250;
| ||||||
36 | (Z) For taxable years 2001 and thereafter, for the |
| |||||||
| |||||||
1 | taxable year in
which the bonus depreciation deduction | ||||||
2 | (30% of the adjusted basis of the
qualified property) | ||||||
3 | is taken on the taxpayer's federal income tax return | ||||||
4 | under
subsection (k) of Section 168 of the Internal | ||||||
5 | Revenue Code and for each
applicable taxable year | ||||||
6 | thereafter, an amount equal to "x", where:
| ||||||
7 | (1) "y" equals the amount of the depreciation | ||||||
8 | deduction taken for the
taxable year
on the | ||||||
9 | taxpayer's federal income tax return on property | ||||||
10 | for which the bonus
depreciation deduction (30% of | ||||||
11 | the adjusted basis of the qualified property)
was | ||||||
12 | taken in any year under subsection (k) of Section | ||||||
13 | 168 of the Internal
Revenue Code, but not including | ||||||
14 | the bonus depreciation deduction; and
| ||||||
15 | (2) "x" equals "y" multiplied by 30 and then | ||||||
16 | divided by 70 (or "y"
multiplied by 0.429).
| ||||||
17 | The aggregate amount deducted under this | ||||||
18 | subparagraph in all taxable
years for any one piece of | ||||||
19 | property may not exceed the amount of the bonus
| ||||||
20 | depreciation deduction (30% of the adjusted basis of | ||||||
21 | the qualified property)
taken on that property on the | ||||||
22 | taxpayer's federal income tax return under
subsection | ||||||
23 | (k) of Section 168 of the Internal Revenue Code; and
| ||||||
24 | (AA) If the taxpayer reports a capital gain or loss | ||||||
25 | on the taxpayer's
federal income tax return for the | ||||||
26 | taxable year based on a sale or transfer of
property | ||||||
27 | for which the taxpayer was required in any taxable year | ||||||
28 | to make an
addition modification under subparagraph | ||||||
29 | (D-15), then an amount equal to that
addition | ||||||
30 | modification.
| ||||||
31 | The taxpayer is allowed to take the deduction under | ||||||
32 | this subparagraph
only once with respect to any one | ||||||
33 | piece of property; and
| ||||||
34 | (BB)
(Z) Any amount included in adjusted gross | ||||||
35 | income, other
than
salary,
received by a driver in a | ||||||
36 | ridesharing arrangement using a motor vehicle ; and
.
|
| |||||||
| |||||||
1 | (CC) For taxable years ending on or after December | ||||||
2 | 31, 2004, subject to the conditions in this | ||||||
3 | subparagraph, up to $10,000, if the taxpayer, while | ||||||
4 | living, donates one or more of his or her human organs | ||||||
5 | to another human being for human organ | ||||||
6 | transplantation. A deduction that is claimed under | ||||||
7 | this subparagraph may be claimed for the taxable year | ||||||
8 | in which the human organ transplantation occurs. An | ||||||
9 | individual may claim the deduction under this | ||||||
10 | subparagraph only once, and the deduction may be | ||||||
11 | claimed for only the following unreimbursed expenses | ||||||
12 | that are incurred by the claimant and related to the | ||||||
13 | claimant's organ donation: | ||||||
14 | (I) travel expenses; | ||||||
15 | (II) lodging expenses; and | ||||||
16 | (III) lost wages. | ||||||
17 | The deduction under this subparagraph may not be | ||||||
18 | claimed by a part-year resident or a nonresident of | ||||||
19 | this State. As used in this subparagraph, "human organ" | ||||||
20 | means all or part of a liver, pancreas, kidney, | ||||||
21 | intestine, lung, or bone marrow, and "human organ | ||||||
22 | transplantation" means the medical procedure by which | ||||||
23 | transfer of a human organ is made from the body of a | ||||||
24 | person to the body of another person. This subparagraph | ||||||
25 | is exempt from the provisions of Section 250 of the | ||||||
26 | Act.
| ||||||
27 | (b) Corporations.
| ||||||
28 | (1) In general. In the case of a corporation, base | ||||||
29 | income means an
amount equal to the taxpayer's taxable | ||||||
30 | income for the taxable year as
modified by paragraph (2).
| ||||||
31 | (2) Modifications. The taxable income referred to in | ||||||
32 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
33 | of the following amounts:
| ||||||
34 | (A) An amount equal to all amounts paid or accrued | ||||||
35 | to the taxpayer
as interest and all distributions |
| |||||||
| |||||||
1 | received from regulated investment
companies during | ||||||
2 | the taxable year to the extent excluded from gross
| ||||||
3 | income in the computation of taxable income;
| ||||||
4 | (B) An amount equal to the amount of tax imposed by | ||||||
5 | this Act to the
extent deducted from gross income in | ||||||
6 | the computation of taxable income
for the taxable year;
| ||||||
7 | (C) In the case of a regulated investment company, | ||||||
8 | an amount equal to
the excess of (i) the net long-term | ||||||
9 | capital gain for the taxable year, over
(ii) the amount | ||||||
10 | of the capital gain dividends designated as such in | ||||||
11 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
12 | Revenue Code and any amount
designated under Section | ||||||
13 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
14 | attributable to the taxable year (this amendatory Act | ||||||
15 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
16 | law and is not a new
enactment);
| ||||||
17 | (D) The amount of any net operating loss deduction | ||||||
18 | taken in arriving
at taxable income, other than a net | ||||||
19 | operating loss carried forward from a
taxable year | ||||||
20 | ending prior to December 31, 1986;
| ||||||
21 | (E) For taxable years in which a net operating loss | ||||||
22 | carryback or
carryforward from a taxable year ending | ||||||
23 | prior to December 31, 1986 is an
element of taxable | ||||||
24 | income under paragraph (1) of subsection (e) or
| ||||||
25 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
26 | the amount by which
addition modifications other than | ||||||
27 | those provided by this subparagraph (E)
exceeded | ||||||
28 | subtraction modifications in such earlier taxable | ||||||
29 | year, with the
following limitations applied in the | ||||||
30 | order that they are listed:
| ||||||
31 | (i) the addition modification relating to the | ||||||
32 | net operating loss
carried back or forward to the | ||||||
33 | taxable year from any taxable year ending
prior to | ||||||
34 | December 31, 1986 shall be reduced by the amount of | ||||||
35 | addition
modification under this subparagraph (E) | ||||||
36 | which related to that net operating
loss and which |
| |||||||
| |||||||
1 | was taken into account in calculating the base | ||||||
2 | income of an
earlier taxable year, and
| ||||||
3 | (ii) the addition modification relating to the | ||||||
4 | net operating loss
carried back or forward to the | ||||||
5 | taxable year from any taxable year ending
prior to | ||||||
6 | December 31, 1986 shall not exceed the amount of | ||||||
7 | such carryback or
carryforward;
| ||||||
8 | For taxable years in which there is a net operating | ||||||
9 | loss carryback or
carryforward from more than one other | ||||||
10 | taxable year ending prior to December
31, 1986, the | ||||||
11 | addition modification provided in this subparagraph | ||||||
12 | (E) shall
be the sum of the amounts computed | ||||||
13 | independently under the preceding
provisions of this | ||||||
14 | subparagraph (E) for each such taxable year;
| ||||||
15 | (E-5) For taxable years ending after December 31, | ||||||
16 | 1997, an
amount equal to any eligible remediation costs | ||||||
17 | that the corporation
deducted in computing adjusted | ||||||
18 | gross income and for which the
corporation claims a | ||||||
19 | credit under subsection (l) of Section 201;
| ||||||
20 | (E-10) For taxable years 2001 and thereafter, an | ||||||
21 | amount equal to the
bonus depreciation deduction (30% | ||||||
22 | of the adjusted basis of the qualified
property) taken | ||||||
23 | on the taxpayer's federal income tax return for the | ||||||
24 | taxable
year under subsection (k) of Section 168 of the | ||||||
25 | Internal Revenue Code; and
| ||||||
26 | (E-11) If the taxpayer reports a capital gain or | ||||||
27 | loss on the
taxpayer's federal income tax return for | ||||||
28 | the taxable year based on a sale or
transfer of | ||||||
29 | property for which the taxpayer was required in any | ||||||
30 | taxable year to
make an addition modification under | ||||||
31 | subparagraph (E-10), then an amount equal
to the | ||||||
32 | aggregate amount of the deductions taken in all taxable
| ||||||
33 | years under subparagraph (T) with respect to that | ||||||
34 | property . ;
| ||||||
35 | The taxpayer is required to make the addition | ||||||
36 | modification under this
subparagraph
only once with |
| |||||||
| |||||||
1 | respect to any one piece of property;
| ||||||
2 | and by deducting from the total so obtained the sum of the | ||||||
3 | following
amounts:
| ||||||
4 | (F) An amount equal to the amount of any tax | ||||||
5 | imposed by this Act
which was refunded to the taxpayer | ||||||
6 | and included in such total for the
taxable year;
| ||||||
7 | (G) An amount equal to any amount included in such | ||||||
8 | total under
Section 78 of the Internal Revenue Code;
| ||||||
9 | (H) In the case of a regulated investment company, | ||||||
10 | an amount equal
to the amount of exempt interest | ||||||
11 | dividends as defined in subsection (b)
(5) of Section | ||||||
12 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
13 | for the taxable year;
| ||||||
14 | (I) With the exception of any amounts subtracted | ||||||
15 | under subparagraph
(J),
an amount equal to the sum of | ||||||
16 | all amounts disallowed as
deductions by (i) Sections | ||||||
17 | 171(a) (2), and 265(a)(2) and amounts disallowed as
| ||||||
18 | interest expense by Section 291(a)(3) of the Internal | ||||||
19 | Revenue Code, as now
or hereafter amended, and all | ||||||
20 | amounts of expenses allocable to interest and
| ||||||
21 | disallowed as deductions by Section 265(a)(1) of the | ||||||
22 | Internal Revenue Code,
as now or hereafter amended;
and | ||||||
23 | (ii) for taxable years
ending on or after August 13, | ||||||
24 | 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
25 | 832(b)(5)(B)(i) of the Internal Revenue Code; the
| ||||||
26 | provisions of this
subparagraph are exempt from the | ||||||
27 | provisions of Section 250;
| ||||||
28 | (J) An amount equal to all amounts included in such | ||||||
29 | total which are
exempt from taxation by this State | ||||||
30 | either by reason of its statutes or
Constitution
or by | ||||||
31 | reason of the Constitution, treaties or statutes of the | ||||||
32 | United States;
provided that, in the case of any | ||||||
33 | statute of this State that exempts income
derived from | ||||||
34 | bonds or other obligations from the tax imposed under | ||||||
35 | this Act,
the amount exempted shall be the interest net | ||||||
36 | of bond premium amortization;
|
| |||||||
| |||||||
1 | (K) An amount equal to those dividends included in | ||||||
2 | such total
which were paid by a corporation which | ||||||
3 | conducts
business operations in an Enterprise Zone or | ||||||
4 | zones created under
the Illinois Enterprise Zone Act | ||||||
5 | and conducts substantially all of its
operations in an | ||||||
6 | Enterprise Zone or zones;
| ||||||
7 | (L) An amount equal to those dividends included in | ||||||
8 | such total that
were paid by a corporation that | ||||||
9 | conducts business operations in a federally
designated | ||||||
10 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
11 | High Impact
Business located in Illinois; provided | ||||||
12 | that dividends eligible for the
deduction provided in | ||||||
13 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
14 | shall not be eligible for the deduction provided under | ||||||
15 | this subparagraph
(L);
| ||||||
16 | (M) For any taxpayer that is a financial | ||||||
17 | organization within the meaning
of Section 304(c) of | ||||||
18 | this Act, an amount included in such total as interest
| ||||||
19 | income from a loan or loans made by such taxpayer to a | ||||||
20 | borrower, to the extent
that such a loan is secured by | ||||||
21 | property which is eligible for the Enterprise
Zone | ||||||
22 | Investment Credit. To determine the portion of a loan | ||||||
23 | or loans that is
secured by property eligible for a | ||||||
24 | Section 201(f) investment
credit to the borrower, the | ||||||
25 | entire principal amount of the loan or loans
between | ||||||
26 | the taxpayer and the borrower should be divided into | ||||||
27 | the basis of the
Section 201(f) investment credit | ||||||
28 | property which secures the
loan or loans, using for | ||||||
29 | this purpose the original basis of such property on
the | ||||||
30 | date that it was placed in service in the
Enterprise | ||||||
31 | Zone. The subtraction modification available to | ||||||
32 | taxpayer in any
year under this subsection shall be | ||||||
33 | that portion of the total interest paid
by the borrower | ||||||
34 | with respect to such loan attributable to the eligible
| ||||||
35 | property as calculated under the previous sentence;
| ||||||
36 | (M-1) For any taxpayer that is a financial |
| |||||||
| |||||||
1 | organization within the
meaning of Section 304(c) of | ||||||
2 | this Act, an amount included in such total as
interest | ||||||
3 | income from a loan or loans made by such taxpayer to a | ||||||
4 | borrower,
to the extent that such a loan is secured by | ||||||
5 | property which is eligible for
the High Impact Business | ||||||
6 | Investment Credit. To determine the portion of a
loan | ||||||
7 | or loans that is secured by property eligible for a | ||||||
8 | Section 201(h) investment credit to the borrower, the | ||||||
9 | entire principal amount of
the loan or loans between | ||||||
10 | the taxpayer and the borrower should be divided into
| ||||||
11 | the basis of the Section 201(h) investment credit | ||||||
12 | property which
secures the loan or loans, using for | ||||||
13 | this purpose the original basis of such
property on the | ||||||
14 | date that it was placed in service in a federally | ||||||
15 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
16 | Illinois. No taxpayer that is
eligible for the | ||||||
17 | deduction provided in subparagraph (M) of paragraph | ||||||
18 | (2) of
this subsection shall be eligible for the | ||||||
19 | deduction provided under this
subparagraph (M-1). The | ||||||
20 | subtraction modification available to taxpayers in
any | ||||||
21 | year under this subsection shall be that portion of the | ||||||
22 | total interest
paid by the borrower with respect to | ||||||
23 | such loan attributable to the eligible
property as | ||||||
24 | calculated under the previous sentence;
| ||||||
25 | (N) Two times any contribution made during the | ||||||
26 | taxable year to a
designated zone organization to the | ||||||
27 | extent that the contribution (i)
qualifies as a | ||||||
28 | charitable contribution under subsection (c) of | ||||||
29 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
30 | by its terms, be used for a
project approved by the | ||||||
31 | Department of Commerce and Economic Opportunity
| ||||||
32 | Community Affairs under Section 11 of the Illinois | ||||||
33 | Enterprise Zone Act;
| ||||||
34 | (O) An amount equal to: (i) 85% for taxable years | ||||||
35 | ending on or before
December 31, 1992, or, a percentage | ||||||
36 | equal to the percentage allowable under
Section |
| |||||||
| |||||||
1 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
2 | taxable years ending
after December 31, 1992, of the | ||||||
3 | amount by which dividends included in taxable
income | ||||||
4 | and received from a corporation that is not created or | ||||||
5 | organized under
the laws of the United States or any | ||||||
6 | state or political subdivision thereof,
including, for | ||||||
7 | taxable years ending on or after December 31, 1988, | ||||||
8 | dividends
received or deemed received or paid or deemed | ||||||
9 | paid under Sections 951 through
964 of the Internal | ||||||
10 | Revenue Code, exceed the amount of the modification
| ||||||
11 | provided under subparagraph (G) of paragraph (2) of | ||||||
12 | this subsection (b) which
is related to such dividends; | ||||||
13 | plus (ii) 100% of the amount by which dividends,
| ||||||
14 | included in taxable income and received, including, | ||||||
15 | for taxable years ending on
or after December 31, 1988, | ||||||
16 | dividends received or deemed received or paid or
deemed | ||||||
17 | paid under Sections 951 through 964 of the Internal | ||||||
18 | Revenue Code, from
any such corporation specified in | ||||||
19 | clause (i) that would but for the provisions
of Section | ||||||
20 | 1504 (b) (3) of the Internal Revenue Code be treated as | ||||||
21 | a member of
the affiliated group which includes the | ||||||
22 | dividend recipient, exceed the amount
of the | ||||||
23 | modification provided under subparagraph (G) of | ||||||
24 | paragraph (2) of this
subsection (b) which is related | ||||||
25 | to such dividends;
| ||||||
26 | (P) An amount equal to any contribution made to a | ||||||
27 | job training project
established pursuant to the Tax | ||||||
28 | Increment Allocation Redevelopment Act;
| ||||||
29 | (Q) An amount equal to the amount of the deduction | ||||||
30 | used to compute the
federal income tax credit for | ||||||
31 | restoration of substantial amounts held under
claim of | ||||||
32 | right for the taxable year pursuant to Section 1341 of | ||||||
33 | the
Internal Revenue Code of 1986;
| ||||||
34 | (R) In the case of an attorney-in-fact with respect | ||||||
35 | to whom an
interinsurer or a reciprocal insurer has | ||||||
36 | made the election under Section 835 of
the Internal |
| |||||||
| |||||||
1 | Revenue Code, 26 U.S.C. 835, an amount equal to the | ||||||
2 | excess, if
any, of the amounts paid or incurred by that | ||||||
3 | interinsurer or reciprocal insurer
in the taxable year | ||||||
4 | to the attorney-in-fact over the deduction allowed to | ||||||
5 | that
interinsurer or reciprocal insurer with respect | ||||||
6 | to the attorney-in-fact under
Section 835(b) of the | ||||||
7 | Internal Revenue Code for the taxable year;
| ||||||
8 | (S) For taxable years ending on or after December | ||||||
9 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
10 | amount equal to all amounts of income allocable to a
| ||||||
11 | shareholder subject to the Personal Property Tax | ||||||
12 | Replacement Income Tax imposed
by subsections (c) and | ||||||
13 | (d) of Section 201 of this Act, including amounts
| ||||||
14 | allocable to organizations exempt from federal income | ||||||
15 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
16 | Code. This subparagraph (S) is exempt from
the | ||||||
17 | provisions of Section 250;
| ||||||
18 | (T) For taxable years 2001 and thereafter, for the | ||||||
19 | taxable year in
which the bonus depreciation deduction | ||||||
20 | (30% of the adjusted basis of the
qualified property) | ||||||
21 | is taken on the taxpayer's federal income tax return | ||||||
22 | under
subsection (k) of Section 168 of the Internal | ||||||
23 | Revenue Code and for each
applicable taxable year | ||||||
24 | thereafter, an amount equal to "x", where:
| ||||||
25 | (1) "y" equals the amount of the depreciation | ||||||
26 | deduction taken for the
taxable year
on the | ||||||
27 | taxpayer's federal income tax return on property | ||||||
28 | for which the bonus
depreciation deduction (30% of | ||||||
29 | the adjusted basis of the qualified property)
was | ||||||
30 | taken in any year under subsection (k) of Section | ||||||
31 | 168 of the Internal
Revenue Code, but not including | ||||||
32 | the bonus depreciation deduction; and
| ||||||
33 | (2) "x" equals "y" multiplied by 30 and then | ||||||
34 | divided by 70 (or "y"
multiplied by 0.429).
| ||||||
35 | The aggregate amount deducted under this | ||||||
36 | subparagraph in all taxable
years for any one piece of |
| |||||||
| |||||||
1 | property may not exceed the amount of the bonus
| ||||||
2 | depreciation deduction (30% of the adjusted basis of | ||||||
3 | the qualified property)
taken on that property on the | ||||||
4 | taxpayer's federal income tax return under
subsection | ||||||
5 | (k) of Section 168 of the Internal Revenue Code; and
| ||||||
6 | (U) If the taxpayer reports a capital gain or loss | ||||||
7 | on the taxpayer's
federal income tax return for the | ||||||
8 | taxable year based on a sale or transfer of
property | ||||||
9 | for which the taxpayer was required in any taxable year | ||||||
10 | to make an
addition modification under subparagraph | ||||||
11 | (E-10), then an amount equal to that
addition | ||||||
12 | modification.
| ||||||
13 | The taxpayer is allowed to take the deduction under | ||||||
14 | this subparagraph
only once with respect to any one | ||||||
15 | piece of property.
| ||||||
16 | (3) Special rule. For purposes of paragraph (2) (A), | ||||||
17 | "gross income"
in the case of a life insurance company, for | ||||||
18 | tax years ending on and after
December 31, 1994,
shall mean | ||||||
19 | the gross investment income for the taxable year.
| ||||||
20 | (c) Trusts and estates.
| ||||||
21 | (1) In general. In the case of a trust or estate, base | ||||||
22 | income means
an amount equal to the taxpayer's taxable | ||||||
23 | income for the taxable year as
modified by paragraph (2).
| ||||||
24 | (2) Modifications. Subject to the provisions of | ||||||
25 | paragraph (3), the
taxable income referred to in paragraph | ||||||
26 | (1) shall be modified by adding
thereto the sum of the | ||||||
27 | following amounts:
| ||||||
28 | (A) An amount equal to all amounts paid or accrued | ||||||
29 | to the taxpayer
as interest or dividends during the | ||||||
30 | taxable year to the extent excluded
from gross income | ||||||
31 | in the computation of taxable income;
| ||||||
32 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
33 | trust which, under
its governing instrument, is | ||||||
34 | required to distribute all of its income
currently, | ||||||
35 | $300; and (iii) any other trust, $100, but in each such |
| |||||||
| |||||||
1 | case,
only to the extent such amount was deducted in | ||||||
2 | the computation of
taxable income;
| ||||||
3 | (C) An amount equal to the amount of tax imposed by | ||||||
4 | this Act to the
extent deducted from gross income in | ||||||
5 | the computation of taxable income
for the taxable year;
| ||||||
6 | (D) The amount of any net operating loss deduction | ||||||
7 | taken in arriving at
taxable income, other than a net | ||||||
8 | operating loss carried forward from a
taxable year | ||||||
9 | ending prior to December 31, 1986;
| ||||||
10 | (E) For taxable years in which a net operating loss | ||||||
11 | carryback or
carryforward from a taxable year ending | ||||||
12 | prior to December 31, 1986 is an
element of taxable | ||||||
13 | income under paragraph (1) of subsection (e) or | ||||||
14 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
15 | the amount by which addition
modifications other than | ||||||
16 | those provided by this subparagraph (E) exceeded
| ||||||
17 | subtraction modifications in such taxable year, with | ||||||
18 | the following limitations
applied in the order that | ||||||
19 | they are listed:
| ||||||
20 | (i) the addition modification relating to the | ||||||
21 | net operating loss
carried back or forward to the | ||||||
22 | taxable year from any taxable year ending
prior to | ||||||
23 | December 31, 1986 shall be reduced by the amount of | ||||||
24 | addition
modification under this subparagraph (E) | ||||||
25 | which related to that net
operating loss and which | ||||||
26 | was taken into account in calculating the base
| ||||||
27 | income of an earlier taxable year, and
| ||||||
28 | (ii) the addition modification relating to the | ||||||
29 | net operating loss
carried back or forward to the | ||||||
30 | taxable year from any taxable year ending
prior to | ||||||
31 | December 31, 1986 shall not exceed the amount of | ||||||
32 | such carryback or
carryforward;
| ||||||
33 | For taxable years in which there is a net operating | ||||||
34 | loss carryback or
carryforward from more than one other | ||||||
35 | taxable year ending prior to December
31, 1986, the | ||||||
36 | addition modification provided in this subparagraph |
| |||||||
| |||||||
1 | (E) shall
be the sum of the amounts computed | ||||||
2 | independently under the preceding
provisions of this | ||||||
3 | subparagraph (E) for each such taxable year;
| ||||||
4 | (F) For taxable years ending on or after January 1, | ||||||
5 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
6 | Section 164 of the Internal Revenue
Code if the trust | ||||||
7 | or estate is claiming the same tax for purposes of the
| ||||||
8 | Illinois foreign tax credit under Section 601 of this | ||||||
9 | Act;
| ||||||
10 | (G) An amount equal to the amount of the capital | ||||||
11 | gain deduction
allowable under the Internal Revenue | ||||||
12 | Code, to the extent deducted from
gross income in the | ||||||
13 | computation of taxable income;
| ||||||
14 | (G-5) For taxable years ending after December 31, | ||||||
15 | 1997, an
amount equal to any eligible remediation costs | ||||||
16 | that the trust or estate
deducted in computing adjusted | ||||||
17 | gross income and for which the trust
or estate claims a | ||||||
18 | credit under subsection (l) of Section 201;
| ||||||
19 | (G-10) For taxable years 2001 and thereafter, an | ||||||
20 | amount equal to the
bonus depreciation deduction (30% | ||||||
21 | of the adjusted basis of the qualified
property) taken | ||||||
22 | on the taxpayer's federal income tax return for the | ||||||
23 | taxable
year under subsection (k) of Section 168 of the | ||||||
24 | Internal Revenue Code; and
| ||||||
25 | (G-11) If the taxpayer reports a capital gain or | ||||||
26 | loss on the
taxpayer's federal income tax return for | ||||||
27 | the taxable year based on a sale or
transfer of | ||||||
28 | property for which the taxpayer was required in any | ||||||
29 | taxable year to
make an addition modification under | ||||||
30 | subparagraph (G-10), then an amount equal
to the | ||||||
31 | aggregate amount of the deductions taken in all taxable
| ||||||
32 | years under subparagraph (R) with respect to that | ||||||
33 | property . ;
| ||||||
34 | The taxpayer is required to make the addition | ||||||
35 | modification under this
subparagraph
only once with | ||||||
36 | respect to any one piece of property;
|
| |||||||
| |||||||
1 | and by deducting from the total so obtained the sum of the | ||||||
2 | following
amounts:
| ||||||
3 | (H) An amount equal to all amounts included in such | ||||||
4 | total pursuant
to the provisions of Sections 402(a), | ||||||
5 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
6 | Internal Revenue Code or included in such total as
| ||||||
7 | distributions under the provisions of any retirement | ||||||
8 | or disability plan for
employees of any governmental | ||||||
9 | agency or unit, or retirement payments to
retired | ||||||
10 | partners, which payments are excluded in computing net | ||||||
11 | earnings
from self employment by Section 1402 of the | ||||||
12 | Internal Revenue Code and
regulations adopted pursuant | ||||||
13 | thereto;
| ||||||
14 | (I) The valuation limitation amount;
| ||||||
15 | (J) An amount equal to the amount of any tax | ||||||
16 | imposed by this Act
which was refunded to the taxpayer | ||||||
17 | and included in such total for the
taxable year;
| ||||||
18 | (K) An amount equal to all amounts included in | ||||||
19 | taxable income as
modified by subparagraphs (A), (B), | ||||||
20 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
21 | taxation by this State either by reason of its statutes | ||||||
22 | or
Constitution
or by reason of the Constitution, | ||||||
23 | treaties or statutes of the United States;
provided | ||||||
24 | that, in the case of any statute of this State that | ||||||
25 | exempts income
derived from bonds or other obligations | ||||||
26 | from the tax imposed under this Act,
the amount | ||||||
27 | exempted shall be the interest net of bond premium | ||||||
28 | amortization;
| ||||||
29 | (L) With the exception of any amounts subtracted | ||||||
30 | under subparagraph
(K),
an amount equal to the sum of | ||||||
31 | all amounts disallowed as
deductions by (i) Sections | ||||||
32 | 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
33 | as now or hereafter amended, and all amounts of | ||||||
34 | expenses allocable
to interest and disallowed as | ||||||
35 | deductions by Section 265(1) of the Internal
Revenue | ||||||
36 | Code of 1954, as now or hereafter amended;
and (ii) for |
| |||||||
| |||||||
1 | taxable years
ending on or after August 13, 1999, | ||||||
2 | Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | ||||||
3 | the Internal Revenue Code; the provisions of this
| ||||||
4 | subparagraph are exempt from the provisions of Section | ||||||
5 | 250;
| ||||||
6 | (M) An amount equal to those dividends included in | ||||||
7 | such total
which were paid by a corporation which | ||||||
8 | conducts business operations in an
Enterprise Zone or | ||||||
9 | zones created under the Illinois Enterprise Zone Act | ||||||
10 | and
conducts substantially all of its operations in an | ||||||
11 | Enterprise Zone or Zones;
| ||||||
12 | (N) An amount equal to any contribution made to a | ||||||
13 | job training
project established pursuant to the Tax | ||||||
14 | Increment Allocation
Redevelopment Act;
| ||||||
15 | (O) An amount equal to those dividends included in | ||||||
16 | such total
that were paid by a corporation that | ||||||
17 | conducts business operations in a
federally designated | ||||||
18 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
19 | High Impact Business located in Illinois; provided | ||||||
20 | that dividends eligible
for the deduction provided in | ||||||
21 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
22 | shall not be eligible for the deduction provided under | ||||||
23 | this
subparagraph (O);
| ||||||
24 | (P) An amount equal to the amount of the deduction | ||||||
25 | used to compute the
federal income tax credit for | ||||||
26 | restoration of substantial amounts held under
claim of | ||||||
27 | right for the taxable year pursuant to Section 1341 of | ||||||
28 | the
Internal Revenue Code of 1986;
| ||||||
29 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
30 | equal to the
amount of any
(i) distributions, to the | ||||||
31 | extent includible in gross income for
federal income | ||||||
32 | tax purposes, made to the taxpayer because of
his or | ||||||
33 | her status as a victim of
persecution for racial or | ||||||
34 | religious reasons by Nazi Germany or any other Axis
| ||||||
35 | regime or as an heir of the victim and (ii) items
of | ||||||
36 | income, to the extent
includible in gross income for |
| |||||||
| |||||||
1 | federal income tax purposes, attributable to,
derived | ||||||
2 | from or in any way related to assets stolen from, | ||||||
3 | hidden from, or
otherwise lost to a victim of
| ||||||
4 | persecution for racial or religious reasons by Nazi
| ||||||
5 | Germany or any other Axis regime
immediately prior to, | ||||||
6 | during, and immediately after World War II, including,
| ||||||
7 | but
not limited to, interest on the proceeds receivable | ||||||
8 | as insurance
under policies issued to a victim of | ||||||
9 | persecution for racial or religious
reasons by Nazi | ||||||
10 | Germany or any other Axis regime by European insurance
| ||||||
11 | companies
immediately prior to and during World War II;
| ||||||
12 | provided, however, this subtraction from federal | ||||||
13 | adjusted gross income does not
apply to assets acquired | ||||||
14 | with such assets or with the proceeds from the sale of
| ||||||
15 | such assets; provided, further, this paragraph shall | ||||||
16 | only apply to a taxpayer
who was the first recipient of | ||||||
17 | such assets after their recovery and who is a
victim of
| ||||||
18 | persecution for racial or religious reasons
by Nazi | ||||||
19 | Germany or any other Axis regime or as an heir of the | ||||||
20 | victim. The
amount of and the eligibility for any | ||||||
21 | public assistance, benefit, or
similar entitlement is | ||||||
22 | not affected by the inclusion of items (i) and (ii) of
| ||||||
23 | this paragraph in gross income for federal income tax | ||||||
24 | purposes.
This paragraph is exempt from the provisions | ||||||
25 | of Section 250;
| ||||||
26 | (R) For taxable years 2001 and thereafter, for the | ||||||
27 | taxable year in
which the bonus depreciation deduction | ||||||
28 | (30% of the adjusted basis of the
qualified property) | ||||||
29 | is taken on the taxpayer's federal income tax return | ||||||
30 | under
subsection (k) of Section 168 of the Internal | ||||||
31 | Revenue Code and for each
applicable taxable year | ||||||
32 | thereafter, an amount equal to "x", where:
| ||||||
33 | (1) "y" equals the amount of the depreciation | ||||||
34 | deduction taken for the
taxable year
on the | ||||||
35 | taxpayer's federal income tax return on property | ||||||
36 | for which the bonus
depreciation deduction (30% of |
| |||||||
| |||||||
1 | the adjusted basis of the qualified property)
was | ||||||
2 | taken in any year under subsection (k) of Section | ||||||
3 | 168 of the Internal
Revenue Code, but not including | ||||||
4 | the bonus depreciation deduction; and
| ||||||
5 | (2) "x" equals "y" multiplied by 30 and then | ||||||
6 | divided by 70 (or "y"
multiplied by 0.429).
| ||||||
7 | The aggregate amount deducted under this | ||||||
8 | subparagraph in all taxable
years for any one piece of | ||||||
9 | property may not exceed the amount of the bonus
| ||||||
10 | depreciation deduction (30% of the adjusted basis of | ||||||
11 | the qualified property)
taken on that property on the | ||||||
12 | taxpayer's federal income tax return under
subsection | ||||||
13 | (k) of Section 168 of the Internal Revenue Code; and
| ||||||
14 | (S) If the taxpayer reports a capital gain or loss | ||||||
15 | on the taxpayer's
federal income tax return for the | ||||||
16 | taxable year based on a sale or transfer of
property | ||||||
17 | for which the taxpayer was required in any taxable year | ||||||
18 | to make an
addition modification under subparagraph | ||||||
19 | (G-10), then an amount equal to that
addition | ||||||
20 | modification.
| ||||||
21 | The taxpayer is allowed to take the deduction under | ||||||
22 | this subparagraph
only once with respect to any one | ||||||
23 | piece of property.
| ||||||
24 | (3) Limitation. The amount of any modification | ||||||
25 | otherwise required
under this subsection shall, under | ||||||
26 | regulations prescribed by the
Department, be adjusted by | ||||||
27 | any amounts included therein which were
properly paid, | ||||||
28 | credited, or required to be distributed, or permanently set
| ||||||
29 | aside for charitable purposes pursuant to Internal Revenue | ||||||
30 | Code Section
642(c) during the taxable year.
| ||||||
31 | (d) Partnerships.
| ||||||
32 | (1) In general. In the case of a partnership, base | ||||||
33 | income means an
amount equal to the taxpayer's taxable | ||||||
34 | income for the taxable year as
modified by paragraph (2).
| ||||||
35 | (2) Modifications. The taxable income referred to in |
| |||||||
| |||||||
1 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
2 | of the following amounts:
| ||||||
3 | (A) An amount equal to all amounts paid or accrued | ||||||
4 | to the taxpayer as
interest or dividends during the | ||||||
5 | taxable year to the extent excluded from
gross income | ||||||
6 | in the computation of taxable income;
| ||||||
7 | (B) An amount equal to the amount of tax imposed by | ||||||
8 | this Act to the
extent deducted from gross income for | ||||||
9 | the taxable year;
| ||||||
10 | (C) The amount of deductions allowed to the | ||||||
11 | partnership pursuant to
Section 707 (c) of the Internal | ||||||
12 | Revenue Code in calculating its taxable income;
| ||||||
13 | (D) An amount equal to the amount of the capital | ||||||
14 | gain deduction
allowable under the Internal Revenue | ||||||
15 | Code, to the extent deducted from
gross income in the | ||||||
16 | computation of taxable income;
| ||||||
17 | (D-5) For taxable years 2001 and thereafter, an | ||||||
18 | amount equal to the
bonus depreciation deduction (30% | ||||||
19 | of the adjusted basis of the qualified
property) taken | ||||||
20 | on the taxpayer's federal income tax return for the | ||||||
21 | taxable
year under subsection (k) of Section 168 of the | ||||||
22 | Internal Revenue Code; and
| ||||||
23 | (D-6) If the taxpayer reports a capital gain or | ||||||
24 | loss on the taxpayer's
federal income tax return for | ||||||
25 | the taxable year based on a sale or transfer of
| ||||||
26 | property for which the taxpayer was required in any | ||||||
27 | taxable year to make an
addition modification under | ||||||
28 | subparagraph (D-5), then an amount equal to the
| ||||||
29 | aggregate amount of the deductions taken in all taxable | ||||||
30 | years
under subparagraph (O) with respect to that | ||||||
31 | property . ;
| ||||||
32 | The taxpayer is required to make the addition | ||||||
33 | modification under this
subparagraph
only once with | ||||||
34 | respect to any one piece of property;
| ||||||
35 | and by deducting from the total so obtained the following | ||||||
36 | amounts:
|
| |||||||
| |||||||
1 | (E) The valuation limitation amount;
| ||||||
2 | (F) An amount equal to the amount of any tax | ||||||
3 | imposed by this Act which
was refunded to the taxpayer | ||||||
4 | and included in such total for the taxable year;
| ||||||
5 | (G) An amount equal to all amounts included in | ||||||
6 | taxable income as
modified by subparagraphs (A), (B), | ||||||
7 | (C) and (D) which are exempt from
taxation by this | ||||||
8 | State either by reason of its statutes or Constitution | ||||||
9 | or
by reason of
the Constitution, treaties or statutes | ||||||
10 | of the United States;
provided that, in the case of any | ||||||
11 | statute of this State that exempts income
derived from | ||||||
12 | bonds or other obligations from the tax imposed under | ||||||
13 | this Act,
the amount exempted shall be the interest net | ||||||
14 | of bond premium amortization;
| ||||||
15 | (H) Any income of the partnership which | ||||||
16 | constitutes personal service
income as defined in | ||||||
17 | Section 1348 (b) (1) of the Internal Revenue Code (as
| ||||||
18 | in effect December 31, 1981) or a reasonable allowance | ||||||
19 | for compensation
paid or accrued for services rendered | ||||||
20 | by partners to the partnership,
whichever is greater;
| ||||||
21 | (I) An amount equal to all amounts of income | ||||||
22 | distributable to an entity
subject to the Personal | ||||||
23 | Property Tax Replacement Income Tax imposed by
| ||||||
24 | subsections (c) and (d) of Section 201 of this Act | ||||||
25 | including amounts
distributable to organizations | ||||||
26 | exempt from federal income tax by reason of
Section | ||||||
27 | 501(a) of the Internal Revenue Code;
| ||||||
28 | (J) With the exception of any amounts subtracted | ||||||
29 | under subparagraph
(G),
an amount equal to the sum of | ||||||
30 | all amounts disallowed as deductions
by (i) Sections | ||||||
31 | 171(a) (2), and 265(2) of the Internal Revenue Code of | ||||||
32 | 1954,
as now or hereafter amended, and all amounts of | ||||||
33 | expenses allocable to
interest and disallowed as | ||||||
34 | deductions by Section 265(1) of the Internal
Revenue | ||||||
35 | Code, as now or hereafter amended;
and (ii) for taxable | ||||||
36 | years
ending on or after August 13, 1999, Sections
|
| |||||||
| |||||||
1 | 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||||||
2 | Internal Revenue Code; the provisions of this
| ||||||
3 | subparagraph are exempt from the provisions of Section | ||||||
4 | 250;
| ||||||
5 | (K) An amount equal to those dividends included in | ||||||
6 | such total which were
paid by a corporation which | ||||||
7 | conducts business operations in an Enterprise
Zone or | ||||||
8 | zones created under the Illinois Enterprise Zone Act, | ||||||
9 | enacted by
the 82nd General Assembly, and
conducts | ||||||
10 | substantially all of its operations
in an Enterprise | ||||||
11 | Zone or Zones;
| ||||||
12 | (L) An amount equal to any contribution made to a | ||||||
13 | job training project
established pursuant to the Real | ||||||
14 | Property Tax Increment Allocation
Redevelopment Act;
| ||||||
15 | (M) An amount equal to those dividends included in | ||||||
16 | such total
that were paid by a corporation that | ||||||
17 | conducts business operations in a
federally designated | ||||||
18 | Foreign Trade Zone or Sub-Zone and that is designated a
| ||||||
19 | High Impact Business located in Illinois; provided | ||||||
20 | that dividends eligible
for the deduction provided in | ||||||
21 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
22 | shall not be eligible for the deduction provided under | ||||||
23 | this
subparagraph (M);
| ||||||
24 | (N) An amount equal to the amount of the deduction | ||||||
25 | used to compute the
federal income tax credit for | ||||||
26 | restoration of substantial amounts held under
claim of | ||||||
27 | right for the taxable year pursuant to Section 1341 of | ||||||
28 | the
Internal Revenue Code of 1986;
| ||||||
29 | (O) For taxable years 2001 and thereafter, for the | ||||||
30 | taxable year in
which the bonus depreciation deduction | ||||||
31 | (30% of the adjusted basis of the
qualified property) | ||||||
32 | is taken on the taxpayer's federal income tax return | ||||||
33 | under
subsection (k) of Section 168 of the Internal | ||||||
34 | Revenue Code and for each
applicable taxable year | ||||||
35 | thereafter, an amount equal to "x", where:
| ||||||
36 | (1) "y" equals the amount of the depreciation |
| |||||||
| |||||||
1 | deduction taken for the
taxable year
on the | ||||||
2 | taxpayer's federal income tax return on property | ||||||
3 | for which the bonus
depreciation deduction (30% of | ||||||
4 | the adjusted basis of the qualified property)
was | ||||||
5 | taken in any year under subsection (k) of Section | ||||||
6 | 168 of the Internal
Revenue Code, but not including | ||||||
7 | the bonus depreciation deduction; and
| ||||||
8 | (2) "x" equals "y" multiplied by 30 and then | ||||||
9 | divided by 70 (or "y"
multiplied by 0.429).
| ||||||
10 | The aggregate amount deducted under this | ||||||
11 | subparagraph in all taxable
years for any one piece of | ||||||
12 | property may not exceed the amount of the bonus
| ||||||
13 | depreciation deduction (30% of the adjusted basis of | ||||||
14 | the qualified property)
taken on that property on the | ||||||
15 | taxpayer's federal income tax return under
subsection | ||||||
16 | (k) of Section 168 of the Internal Revenue Code; and
| ||||||
17 | (P) If the taxpayer reports a capital gain or loss | ||||||
18 | on the taxpayer's
federal income tax return for the | ||||||
19 | taxable year based on a sale or transfer of
property | ||||||
20 | for which the taxpayer was required in any taxable year | ||||||
21 | to make an
addition modification under subparagraph | ||||||
22 | (D-5), then an amount equal to that
addition | ||||||
23 | modification.
| ||||||
24 | The taxpayer is allowed to take the deduction under | ||||||
25 | this subparagraph
only once with respect to any one | ||||||
26 | piece of property.
| ||||||
27 | (e) Gross income; adjusted gross income; taxable income.
| ||||||
28 | (1) In general. Subject to the provisions of paragraph | ||||||
29 | (2) and
subsection (b) (3), for purposes of this Section | ||||||
30 | and Section 803(e), a
taxpayer's gross income, adjusted | ||||||
31 | gross income, or taxable income for
the taxable year shall | ||||||
32 | mean the amount of gross income, adjusted gross
income or | ||||||
33 | taxable income properly reportable for federal income tax
| ||||||
34 | purposes for the taxable year under the provisions of the | ||||||
35 | Internal
Revenue Code. Taxable income may be less than |
| |||||||
| |||||||
1 | zero. However, for taxable
years ending on or after | ||||||
2 | December 31, 1986, net operating loss
carryforwards from | ||||||
3 | taxable years ending prior to December 31, 1986, may not
| ||||||
4 | exceed the sum of federal taxable income for the taxable | ||||||
5 | year before net
operating loss deduction, plus the excess | ||||||
6 | of addition modifications over
subtraction modifications | ||||||
7 | for the taxable year. For taxable years ending
prior to | ||||||
8 | December 31, 1986, taxable income may never be an amount in | ||||||
9 | excess
of the net operating loss for the taxable year as | ||||||
10 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
11 | Internal Revenue Code, provided that when
taxable income of | ||||||
12 | a corporation (other than a Subchapter S corporation),
| ||||||
13 | trust, or estate is less than zero and addition | ||||||
14 | modifications, other than
those provided by subparagraph | ||||||
15 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
16 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
17 | trusts and estates, exceed subtraction modifications, an | ||||||
18 | addition
modification must be made under those | ||||||
19 | subparagraphs for any other taxable
year to which the | ||||||
20 | taxable income less than zero (net operating loss) is
| ||||||
21 | applied under Section 172 of the Internal Revenue Code or | ||||||
22 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
23 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
24 | Revenue Code.
| ||||||
25 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
26 | subsection,
the taxable income properly reportable for | ||||||
27 | federal income tax purposes
shall mean:
| ||||||
28 | (A) Certain life insurance companies. In the case | ||||||
29 | of a life
insurance company subject to the tax imposed | ||||||
30 | by Section 801 of the
Internal Revenue Code, life | ||||||
31 | insurance company taxable income, plus the
amount of | ||||||
32 | distribution from pre-1984 policyholder surplus | ||||||
33 | accounts as
calculated under Section 815a of the | ||||||
34 | Internal Revenue Code;
| ||||||
35 | (B) Certain other insurance companies. In the case | ||||||
36 | of mutual
insurance companies subject to the tax |
| |||||||
| |||||||
1 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
2 | insurance company taxable income;
| ||||||
3 | (C) Regulated investment companies. In the case of | ||||||
4 | a regulated
investment company subject to the tax | ||||||
5 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
6 | investment company taxable income;
| ||||||
7 | (D) Real estate investment trusts. In the case of a | ||||||
8 | real estate
investment trust subject to the tax imposed | ||||||
9 | by Section 857 of the
Internal Revenue Code, real | ||||||
10 | estate investment trust taxable income;
| ||||||
11 | (E) Consolidated corporations. In the case of a | ||||||
12 | corporation which
is a member of an affiliated group of | ||||||
13 | corporations filing a consolidated
income tax return | ||||||
14 | for the taxable year for federal income tax purposes,
| ||||||
15 | taxable income determined as if such corporation had | ||||||
16 | filed a separate
return for federal income tax purposes | ||||||
17 | for the taxable year and each
preceding taxable year | ||||||
18 | for which it was a member of an affiliated group.
For | ||||||
19 | purposes of this subparagraph, the taxpayer's separate | ||||||
20 | taxable
income shall be determined as if the election | ||||||
21 | provided by Section
243(b) (2) of the Internal Revenue | ||||||
22 | Code had been in effect for all such years;
| ||||||
23 | (F) Cooperatives. In the case of a cooperative | ||||||
24 | corporation or
association, the taxable income of such | ||||||
25 | organization determined in
accordance with the | ||||||
26 | provisions of Section 1381 through 1388 of the
Internal | ||||||
27 | Revenue Code;
| ||||||
28 | (G) Subchapter S corporations. In the case of: (i) | ||||||
29 | a Subchapter S
corporation for which there is in effect | ||||||
30 | an election for the taxable year
under Section 1362 of | ||||||
31 | the Internal Revenue Code, the taxable income of such
| ||||||
32 | corporation determined in accordance with Section | ||||||
33 | 1363(b) of the Internal
Revenue Code, except that | ||||||
34 | taxable income shall take into
account those items | ||||||
35 | which are required by Section 1363(b)(1) of the
| ||||||
36 | Internal Revenue Code to be separately stated; and (ii) |
| |||||||
| |||||||
1 | a Subchapter
S corporation for which there is in effect | ||||||
2 | a federal election to opt out of
the provisions of the | ||||||
3 | Subchapter S Revision Act of 1982 and have applied
| ||||||
4 | instead the prior federal Subchapter S rules as in | ||||||
5 | effect on July 1, 1982,
the taxable income of such | ||||||
6 | corporation determined in accordance with the
federal | ||||||
7 | Subchapter S rules as in effect on July 1, 1982; and
| ||||||
8 | (H) Partnerships. In the case of a partnership, | ||||||
9 | taxable income
determined in accordance with Section | ||||||
10 | 703 of the Internal Revenue Code,
except that taxable | ||||||
11 | income shall take into account those items which are
| ||||||
12 | required by Section 703(a)(1) to be separately stated | ||||||
13 | but which would be
taken into account by an individual | ||||||
14 | in calculating his taxable income.
| ||||||
15 | (f) Valuation limitation amount.
| ||||||
16 | (1) In general. The valuation limitation amount | ||||||
17 | referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||||||
18 | (d)(2) (E) is an amount equal to:
| ||||||
19 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
20 | amounts (to the
extent consisting of gain reportable | ||||||
21 | under the provisions of Section
1245 or 1250 of the | ||||||
22 | Internal Revenue Code) for all property in respect
of | ||||||
23 | which such gain was reported for the taxable year; plus
| ||||||
24 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
25 | 1969 appreciation
amounts (to the extent consisting of | ||||||
26 | capital gain) for all property in
respect of which such | ||||||
27 | gain was reported for federal income tax purposes
for | ||||||
28 | the taxable year, or (ii) the net capital gain for the | ||||||
29 | taxable year,
reduced in either case by any amount of | ||||||
30 | such gain included in the amount
determined under | ||||||
31 | subsection (a) (2) (F) or (c) (2) (H).
| ||||||
32 | (2) Pre-August 1, 1969 appreciation amount.
| ||||||
33 | (A) If the fair market value of property referred | ||||||
34 | to in paragraph
(1) was readily ascertainable on August | ||||||
35 | 1, 1969, the pre-August 1, 1969
appreciation amount for |
| |||||||
| |||||||
1 | such property is the lesser of (i) the excess of
such | ||||||
2 | fair market value over the taxpayer's basis (for | ||||||
3 | determining gain)
for such property on that date | ||||||
4 | (determined under the Internal Revenue
Code as in | ||||||
5 | effect on that date), or (ii) the total gain realized | ||||||
6 | and
reportable for federal income tax purposes in | ||||||
7 | respect of the sale,
exchange or other disposition of | ||||||
8 | such property.
| ||||||
9 | (B) If the fair market value of property referred | ||||||
10 | to in paragraph
(1) was not readily ascertainable on | ||||||
11 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
12 | amount for such property is that amount which bears
the | ||||||
13 | same ratio to the total gain reported in respect of the | ||||||
14 | property for
federal income tax purposes for the | ||||||
15 | taxable year, as the number of full
calendar months in | ||||||
16 | that part of the taxpayer's holding period for the
| ||||||
17 | property ending July 31, 1969 bears to the number of | ||||||
18 | full calendar
months in the taxpayer's entire holding | ||||||
19 | period for the
property.
| ||||||
20 | (C) The Department shall prescribe such | ||||||
21 | regulations as may be
necessary to carry out the | ||||||
22 | purposes of this paragraph.
| ||||||
23 | (g) Double deductions. Unless specifically provided | ||||||
24 | otherwise, nothing
in this Section shall permit the same item | ||||||
25 | to be deducted more than once.
| ||||||
26 | (h) Legislative intention. Except as expressly provided by | ||||||
27 | this
Section there shall be no modifications or limitations on | ||||||
28 | the amounts
of income, gain, loss or deduction taken into | ||||||
29 | account in determining
gross income, adjusted gross income or | ||||||
30 | taxable income for federal income
tax purposes for the taxable | ||||||
31 | year, or in the amount of such items
entering into the | ||||||
32 | computation of base income and net income under this
Act for | ||||||
33 | such taxable year, whether in respect of property values as of
| ||||||
34 | August 1, 1969 or otherwise.
|
| |||||||
| |||||||
1 | (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; | ||||||
2 | 91-357, eff.
7-29-99; 91-541, eff. 8-13-99; 91-676, eff. | ||||||
3 | 12-23-99; 91-845, eff. 6-22-00;
91-913, eff. 1-1-01; 92-16, | ||||||
4 | eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff.
8-17-01; | ||||||
5 | 92-603, eff. 6-28-02; 92-626, eff. 7-11-02; 92-651, eff. | ||||||
6 | 7-11-02;
92-846, eff. 8-23-02; revised 10-15-03.)
| ||||||
7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
|