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Revenue Committee
Filed: 5/19/2004
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09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
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| AMENDMENT TO SENATE BILL 2210
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| AMENDMENT NO. ______. Amend Senate Bill 2210 by replacing |
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| everything after the enacting clause with the following:
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| "Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing Sections 203 and 1501 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 |
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| the computation of adjusted gross
income for the | 2 |
| taxable year;
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| (C) An amount equal to the amount received during | 4 |
| the taxable year
as a recovery or refund of real | 5 |
| property taxes paid with respect to the
taxpayer's | 6 |
| principal residence under the Revenue Act of
1939 and | 7 |
| for which a deduction was previously taken under | 8 |
| subparagraph (L) of
this paragraph (2) prior to July 1, | 9 |
| 1991, the retrospective application date of
Article 4 | 10 |
| of Public Act 87-17. In the case of multi-unit or | 11 |
| multi-use
structures and farm dwellings, the taxes on | 12 |
| the taxpayer's principal residence
shall be that | 13 |
| portion of the total taxes for the entire property | 14 |
| which is
attributable to such principal residence;
| 15 |
| (D) An amount equal to the amount of the capital | 16 |
| gain deduction
allowable under the Internal Revenue | 17 |
| Code, to the extent deducted from gross
income in the | 18 |
| computation of adjusted gross income;
| 19 |
| (D-5) An amount, to the extent not included in | 20 |
| adjusted gross income,
equal to the amount of money | 21 |
| withdrawn by the taxpayer in the taxable year from
a | 22 |
| medical care savings account and the interest earned on | 23 |
| the account in the
taxable year of a withdrawal | 24 |
| pursuant to subsection (b) of Section 20 of the
Medical | 25 |
| Care Savings Account Act or subsection (b) of Section | 26 |
| 20 of the
Medical Care Savings Account Act of 2000;
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| (D-10) For taxable years ending after December 31, | 28 |
| 1997, an
amount equal to any eligible remediation costs | 29 |
| that the individual
deducted in computing adjusted | 30 |
| gross income and for which the
individual claims a | 31 |
| credit under subsection (l) of Section 201;
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| (D-15) For taxable years 2001 and thereafter, an | 33 |
| amount equal to the
bonus depreciation deduction (30% | 34 |
| of the adjusted basis of the qualified
property) taken |
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| on the taxpayer's federal income tax return for the | 2 |
| taxable
year under subsection (k) of Section 168 of the | 3 |
| Internal Revenue Code; and
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| (D-16) If the taxpayer reports a capital gain or | 5 |
| loss on the
taxpayer's federal income tax return for | 6 |
| the taxable year based on a sale or
transfer of | 7 |
| property for which the taxpayer was required in any | 8 |
| taxable year to
make an addition modification under | 9 |
| subparagraph (D-15), then an amount equal
to the | 10 |
| aggregate amount of the deductions taken in all taxable
| 11 |
| years under subparagraph (Z) with respect to that | 12 |
| property . ;
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| The taxpayer is required to make the addition | 14 |
| modification under this
subparagraph
only once with | 15 |
| respect to any one piece of property ; . and
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| (D-17) For taxable years ending on or after | 17 |
| December 31, 2004, an amount equal to the amount | 18 |
| otherwise allowed as a deduction in computing base | 19 |
| income for interest paid, accrued, or incurred, | 20 |
| directly or indirectly, to a foreign person who would | 21 |
| be a member of the same unitary business group but for | 22 |
| the fact that foreign person's business activity | 23 |
| outside the United States is 80% or more of the foreign | 24 |
| person's total business activity. The addition | 25 |
| modification required by this subparagraph shall be | 26 |
| reduced to the extent that dividends were included in | 27 |
| base income for the same taxable year and received by | 28 |
| the taxpayer or by a member of the taxpayer's unitary | 29 |
| business group (including amounts included in gross | 30 |
| income under Sections 951 through 964 of the Internal | 31 |
| Revenue Code and amounts included in gross income under | 32 |
| Section 78 of the Internal Revenue Code) with respect | 33 |
| to the stock of the same person to whom the interest | 34 |
| was paid, accrued, or incurred. This subparagraph does |
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| not apply to an item of interest paid, accrued, or | 2 |
| incurred, directly or indirectly, to a foreign person | 3 |
| that is subject in a foreign country to a tax on or | 4 |
| measured by net income with respect to such interest;
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| (D-18) For taxable years ending on or after | 6 |
| December 31, 2004, an amount equal to the amount of | 7 |
| intangible expenses and costs otherwise allowed as a | 8 |
| deduction in computing base income, and that were paid, | 9 |
| accrued, or incurred, directly or indirectly, to a | 10 |
| foreign person who would be a member of the same | 11 |
| unitary business group but for the fact that the | 12 |
| foreign person's business activity outside the United | 13 |
| States is 80% or more of that person's total business | 14 |
| activity. The addition modification required by this | 15 |
| subparagraph shall be reduced to the extent that | 16 |
| dividends were included in base income for the same | 17 |
| taxable year and received by the taxpayer or by a | 18 |
| member of the taxpayer's unitary business group | 19 |
| (including amounts included in gross income under | 20 |
| Sections 951 through 964 of the Internal Revenue Code | 21 |
| and amounts included in gross income under Section 78 | 22 |
| of the Internal Revenue Code) with respect to the stock | 23 |
| of the same person to whom the intangible expenses and | 24 |
| costs were directly or indirectly paid, incurred, or | 25 |
| accrued. The preceding sentence does not apply to the | 26 |
| extent that the same dividends caused a reduction to | 27 |
| the addition modification required under Section | 28 |
| 203(a)(2)(D-17) of this Act. This subparagraph shall | 29 |
| not apply to any item of intangible expenses or costs | 30 |
| paid, accrued, or incurred, directly or indirectly, | 31 |
| from a transaction with a foreign person that is | 32 |
| subject in a foreign country to a tax on or measured by | 33 |
| net income with respect to such item.
As used in this | 34 |
| subparagraph, the term "intangible expenses and costs" |
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| includes (1) expenses, losses, and costs for, or | 2 |
| related to, the direct or indirect acquisition, use, | 3 |
| maintenance or management, ownership, sale, exchange, | 4 |
| or any other disposition of intangible property; (2) | 5 |
| losses incurred, directly or indirectly, from | 6 |
| factoring transactions or discounting transactions; | 7 |
| (3) royalty, patent, technical, and copyright fees; | 8 |
| (4) licensing fees; and (5) other similar expenses and | 9 |
| costs.
For purposes of this subparagraph, "intangible | 10 |
| property" includes patents, patent applications, trade | 11 |
| names, trademarks, service marks, copyrights, mask | 12 |
| works, trade secrets, and similar types of intangible | 13 |
| assets;
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| (D-20)
(D-15) For taxable years beginning on or | 15 |
| after January 1,
2002, in
the
case of a distribution | 16 |
| from a qualified tuition program under Section 529 of
| 17 |
| the Internal Revenue Code, other than (i) a | 18 |
| distribution from a College Savings
Pool created under | 19 |
| Section 16.5 of the State Treasurer Act or (ii) a
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| distribution from the Illinois Prepaid Tuition Trust | 21 |
| Fund, an amount equal to
the amount excluded from gross | 22 |
| income under Section 529(c)(3)(B);
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| and by deducting from the total so obtained the
sum of the | 24 |
| following amounts:
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| (E) For taxable years ending before December 31, | 26 |
| 2001,
any amount included in such total in respect of | 27 |
| any compensation
(including but not limited to any | 28 |
| compensation paid or accrued to a
serviceman while a | 29 |
| prisoner of war or missing in action) paid to a | 30 |
| resident
by reason of being on active duty in the Armed | 31 |
| Forces of the United States
and in respect of any | 32 |
| compensation paid or accrued to a resident who as a
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| governmental employee was a prisoner of war or missing | 34 |
| in action, and in
respect of any compensation paid to a |
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| resident in 1971 or thereafter for
annual training | 2 |
| performed pursuant to Sections 502 and 503, Title 32,
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| United States Code as a member of the Illinois National | 4 |
| Guard.
For taxable years ending on or after December | 5 |
| 31, 2001, any amount included in
such total in respect | 6 |
| of any compensation (including but not limited to any
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| 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 component | 10 |
| of
the Armed Forces of the United States and in respect | 11 |
| of any compensation paid
or accrued to a resident who | 12 |
| as a governmental employee was a prisoner of war
or | 13 |
| missing in action, and in respect of any compensation | 14 |
| paid to a resident in
2001 or thereafter by reason of | 15 |
| being a member of the Illinois National Guard.
The | 16 |
| provisions of this amendatory Act of the 92nd General | 17 |
| Assembly are exempt
from the provisions of Section 250;
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| (F) An amount equal to all amounts included in such | 19 |
| total pursuant
to the provisions of Sections 402(a), | 20 |
| 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | 21 |
| Internal Revenue Code, or included in such total as
| 22 |
| distributions under the provisions of any retirement | 23 |
| or disability plan for
employees of any governmental | 24 |
| agency or unit, or retirement payments to
retired | 25 |
| partners, which payments are excluded in computing net | 26 |
| earnings
from self employment by Section 1402 of the | 27 |
| Internal Revenue Code and
regulations adopted pursuant | 28 |
| thereto;
| 29 |
| (G) The valuation limitation amount;
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| (H) An amount equal to the amount of any tax | 31 |
| imposed by this Act
which was refunded to the taxpayer | 32 |
| and included in such total for the
taxable year;
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| (I) An amount equal to all amounts included in such | 34 |
| total pursuant
to the provisions of Section 111 of the |
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| Internal Revenue Code as a
recovery of items previously | 2 |
| deducted from adjusted gross income in the
computation | 3 |
| of taxable income;
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| (J) An amount equal to those dividends included in | 5 |
| such total which were
paid by a corporation which | 6 |
| conducts business operations in an Enterprise
Zone or | 7 |
| zones created under the Illinois Enterprise Zone Act, | 8 |
| and conducts
substantially all of its operations in an | 9 |
| Enterprise Zone or zones;
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| (K) An amount equal to those dividends included in | 11 |
| such total that
were paid by a corporation that | 12 |
| conducts business operations in a federally
designated | 13 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 14 |
| High Impact
Business located in Illinois; provided | 15 |
| that dividends eligible for the
deduction provided in | 16 |
| subparagraph (J) of paragraph (2) of this subsection
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| shall not be eligible for the deduction provided under | 18 |
| this subparagraph
(K);
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| (L) For taxable years ending after December 31, | 20 |
| 1983, an amount equal to
all social security benefits | 21 |
| and railroad retirement benefits included in
such | 22 |
| total pursuant to Sections 72(r) and 86 of the Internal | 23 |
| Revenue Code;
| 24 |
| (M) With the exception of any amounts subtracted | 25 |
| under subparagraph
(N), an amount equal to the sum of | 26 |
| all amounts disallowed as
deductions by (i) Sections | 27 |
| 171(a) (2), and 265(2) of the Internal Revenue Code
of | 28 |
| 1954, as now or hereafter amended, and all amounts of | 29 |
| expenses allocable
to interest and disallowed as | 30 |
| deductions by Section 265(1) of the Internal
Revenue | 31 |
| Code of 1954, as now or hereafter amended;
and (ii) for | 32 |
| taxable years
ending on or after August 13, 1999, | 33 |
| Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 34 |
| the Internal Revenue Code; the provisions of this
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| subparagraph are exempt from the provisions of Section | 2 |
| 250;
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| (N) An amount equal to all amounts included in such | 4 |
| total which are
exempt from taxation by this State | 5 |
| either by reason of its statutes or
Constitution
or by | 6 |
| reason of the Constitution, treaties or statutes of the | 7 |
| United States;
provided that, in the case of any | 8 |
| statute of this State that exempts income
derived from | 9 |
| bonds or other obligations from the tax imposed under | 10 |
| this Act,
the amount exempted shall be the interest net | 11 |
| of bond premium amortization;
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| (O) An amount equal to any contribution made to a | 13 |
| job training
project established pursuant to the Tax | 14 |
| Increment Allocation Redevelopment Act;
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| (P) An amount equal to the amount of the deduction | 16 |
| used to compute the
federal income tax credit for | 17 |
| restoration of substantial amounts held under
claim of | 18 |
| right for the taxable year pursuant to Section 1341 of | 19 |
| the
Internal Revenue Code of 1986;
| 20 |
| (Q) An amount equal to any amounts included in such | 21 |
| total, received by
the taxpayer as an acceleration in | 22 |
| the payment of life, endowment or annuity
benefits in | 23 |
| advance of the time they would otherwise be payable as | 24 |
| an indemnity
for a terminal illness;
| 25 |
| (R) An amount equal to the amount of any federal or | 26 |
| State bonus paid
to veterans of the Persian Gulf War;
| 27 |
| (S) An amount, to the extent included in adjusted | 28 |
| gross income, equal
to the amount of a contribution | 29 |
| made in the taxable year on behalf of the
taxpayer to a | 30 |
| medical care savings account established under the | 31 |
| Medical Care
Savings Account Act or the Medical Care | 32 |
| Savings Account Act of 2000 to the
extent the | 33 |
| contribution is accepted by the account
administrator | 34 |
| as provided in that Act;
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| (T) An amount, to the extent included in adjusted | 2 |
| gross income, equal to
the amount of interest earned in | 3 |
| the taxable year on a medical care savings
account | 4 |
| established under the Medical Care Savings Account Act | 5 |
| or the Medical
Care Savings Account Act of 2000 on | 6 |
| behalf of the
taxpayer, other than interest added | 7 |
| pursuant to item (D-5) of this paragraph
(2);
| 8 |
| (U) For one taxable year beginning on or after | 9 |
| January 1,
1994, an
amount equal to the total amount of | 10 |
| tax imposed and paid under subsections (a)
and (b) of | 11 |
| Section 201 of this Act on grant amounts received by | 12 |
| the taxpayer
under the Nursing Home Grant Assistance | 13 |
| Act during the taxpayer's taxable years
1992 and 1993;
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| (V) Beginning with tax years ending on or after | 15 |
| December 31, 1995 and
ending with tax years ending on | 16 |
| or before December 31, 2004, an amount equal to
the | 17 |
| amount paid by a taxpayer who is a
self-employed | 18 |
| taxpayer, a partner of a partnership, or a
shareholder | 19 |
| in a Subchapter S corporation for health insurance or | 20 |
| long-term
care insurance for that taxpayer or that | 21 |
| taxpayer's spouse or dependents, to
the extent that the | 22 |
| amount paid for that health insurance or long-term care
| 23 |
| insurance may be deducted under Section 213 of the | 24 |
| Internal Revenue Code of
1986, has not been deducted on | 25 |
| the federal income tax return of the taxpayer,
and does | 26 |
| not exceed the taxable income attributable to that | 27 |
| taxpayer's income,
self-employment income, or | 28 |
| Subchapter S corporation income; except that no
| 29 |
| deduction shall be allowed under this item (V) if the | 30 |
| taxpayer is eligible to
participate in any health | 31 |
| insurance or long-term care insurance plan of an
| 32 |
| employer of the taxpayer or the taxpayer's
spouse. The | 33 |
| amount of the health insurance and long-term care | 34 |
| insurance
subtracted under this item (V) shall be |
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| determined by multiplying total
health insurance and | 2 |
| long-term care insurance premiums paid by the taxpayer
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| times a number that represents the fractional | 4 |
| percentage of eligible medical
expenses under Section | 5 |
| 213 of the Internal Revenue Code of 1986 not actually
| 6 |
| deducted on the taxpayer's federal income tax return;
| 7 |
| (W) For taxable years beginning on or after January | 8 |
| 1, 1998,
all amounts included in the taxpayer's federal | 9 |
| gross income
in the taxable year from amounts converted | 10 |
| from a regular IRA to a Roth IRA.
This paragraph is | 11 |
| exempt from the provisions of Section
250;
| 12 |
| (X) For taxable year 1999 and thereafter, an amount | 13 |
| equal to the
amount of any (i) distributions, to the | 14 |
| extent includible in gross income for
federal income | 15 |
| tax purposes, made to the taxpayer because of his or | 16 |
| her status
as a victim of persecution for racial or | 17 |
| religious reasons by Nazi Germany or
any other Axis | 18 |
| regime or as an heir of the victim and (ii) items
of | 19 |
| income, to the extent
includible in gross income for | 20 |
| federal income tax purposes, attributable to,
derived | 21 |
| from or in any way related to assets stolen from, | 22 |
| hidden from, or
otherwise lost to a victim of
| 23 |
| persecution for racial or religious reasons by Nazi | 24 |
| Germany or any other Axis
regime immediately prior to, | 25 |
| during, and immediately after World War II,
including, | 26 |
| but
not limited to, interest on the proceeds receivable | 27 |
| as insurance
under policies issued to a victim of | 28 |
| persecution for racial or religious
reasons
by Nazi | 29 |
| Germany or any other Axis regime by European insurance | 30 |
| companies
immediately prior to and during World War II;
| 31 |
| provided, however, this subtraction from federal | 32 |
| adjusted gross income does not
apply to assets acquired | 33 |
| with such assets or with the proceeds from the sale of
| 34 |
| such assets; provided, further, this paragraph shall |
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| only apply to a taxpayer
who was the first recipient of | 2 |
| such assets after their recovery and who is a
victim of | 3 |
| persecution for racial or religious reasons
by Nazi | 4 |
| Germany or any other Axis regime or as an heir of the | 5 |
| victim. The
amount of and the eligibility for any | 6 |
| public assistance, benefit, or
similar entitlement is | 7 |
| not affected by the inclusion of items (i) and (ii) of
| 8 |
| this paragraph in gross income for federal income tax | 9 |
| purposes.
This paragraph is exempt from the provisions | 10 |
| of Section 250;
| 11 |
| (Y) For taxable years beginning on or after January | 12 |
| 1, 2002,
moneys contributed in the taxable year to a | 13 |
| College Savings Pool account under
Section 16.5 of the | 14 |
| State Treasurer Act, except that amounts excluded from
| 15 |
| gross income under Section 529(c)(3) (C) (i) of the | 16 |
| Internal Revenue Code
shall not be considered moneys | 17 |
| contributed under this subparagraph (Y). This
| 18 |
| subparagraph (Y) is exempt from the provisions of | 19 |
| Section 250;
| 20 |
| (Z) For taxable years 2001 and thereafter, for the | 21 |
| taxable year in
which the bonus depreciation deduction | 22 |
| (30% of the adjusted basis of the
qualified property) | 23 |
| is taken on the taxpayer's federal income tax return | 24 |
| under
subsection (k) of Section 168 of the Internal | 25 |
| Revenue Code and for each
applicable taxable year | 26 |
| thereafter, an amount equal to "x", where:
| 27 |
| (1) "y" equals the amount of the depreciation | 28 |
| deduction taken for the
taxable year
on the | 29 |
| taxpayer's federal income tax return on property | 30 |
| for which the bonus
depreciation deduction (30% of | 31 |
| the adjusted basis of the qualified property)
was | 32 |
| taken in any year under subsection (k) of Section | 33 |
| 168 of the Internal
Revenue Code, but not including | 34 |
| the bonus depreciation deduction; and
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| (2) "x" equals "y" multiplied by 30 and then | 2 |
| divided by 70 (or "y"
multiplied by 0.429).
| 3 |
| The aggregate amount deducted under this | 4 |
| subparagraph in all taxable
years for any one piece of | 5 |
| property may not exceed the amount of the bonus
| 6 |
| depreciation deduction (30% of the adjusted basis of | 7 |
| the qualified property)
taken on that property on the | 8 |
| taxpayer's federal income tax return under
subsection | 9 |
| (k) of Section 168 of the Internal Revenue Code; and
| 10 |
| (AA) If the taxpayer reports a capital gain or loss | 11 |
| on the taxpayer's
federal income tax return for the | 12 |
| taxable year based on a sale or transfer of
property | 13 |
| for which the taxpayer was required in any taxable year | 14 |
| to make an
addition modification under subparagraph | 15 |
| (D-15), then an amount equal to that
addition | 16 |
| modification.
| 17 |
| The taxpayer is allowed to take the deduction under | 18 |
| this subparagraph
only once with respect to any one | 19 |
| piece of property; and
| 20 |
| (BB)
(Z) Any amount included in adjusted gross | 21 |
| income, other
than
salary,
received by a driver in a | 22 |
| ridesharing arrangement using a motor vehicle ;
.
| 23 |
| (CC) The amount of (i) any interest income (net of | 24 |
| the deductions allocable thereto) taken into account | 25 |
| for the taxable year with respect to a transaction with | 26 |
| a taxpayer that is required to make an addition | 27 |
| modification with respect to such transaction under | 28 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-13), | 29 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | 30 |
| the amount of that addition modification, and
(ii) any | 31 |
| income from intangible property (net of the deductions | 32 |
| allocable thereto) taken into account for the taxable | 33 |
| year with respect to a transaction with a taxpayer that | 34 |
| is required to make an addition modification with |
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| respect to such transaction under Section | 2 |
| 203(a)(2)(D-18), 203(b)(2)(E-14), 203(c)(2)(G-13), or | 3 |
| 203(d)(2)(D-8), but not to exceed the amount of that | 4 |
| addition modification; | 5 |
| (DD) An amount equal to the interest income taken | 6 |
| into account for the taxable year (net of the | 7 |
| deductions allocable thereto) with respect to | 8 |
| transactions with a foreign person who would be a | 9 |
| member of the taxpayer's unitary business group but for | 10 |
| the fact that the foreign person's business activity | 11 |
| outside the United States is 80% or more of that | 12 |
| person's total business activity, but not to exceed the | 13 |
| addition modification required to be made for the same | 14 |
| taxable year under Section 203(a)(2)(D-17) for | 15 |
| interest paid, accrued, or incurred, directly or | 16 |
| indirectly, to the same foreign person; and | 17 |
| (EE) An amount equal to the income from intangible | 18 |
| property taken into account for the taxable year (net | 19 |
| of the deductions allocable thereto) with respect to | 20 |
| transactions with a foreign person who would be a | 21 |
| member of the taxpayer's unitary business group but for | 22 |
| the fact that the foreign person's business activity | 23 |
| outside the United States is 80% or more of that | 24 |
| person's total business activity, but not to exceed the | 25 |
| addition modification required to be made for the same | 26 |
| taxable year under Section 203(a)(2)(D-18) for | 27 |
| intangible expenses and costs paid, accrued, or | 28 |
| incurred, directly or indirectly, to the same foreign | 29 |
| person.
| 30 |
| (b) Corporations.
| 31 |
| (1) In general. In the case of a corporation, base | 32 |
| income means an
amount equal to the taxpayer's taxable | 33 |
| income for the taxable year as
modified by paragraph (2).
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09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| (2) Modifications. The taxable income referred to in | 2 |
| paragraph (1)
shall be modified by adding thereto the sum | 3 |
| of the following amounts:
| 4 |
| (A) An amount equal to all amounts paid or accrued | 5 |
| to the taxpayer
as interest and all distributions | 6 |
| received from regulated investment
companies during | 7 |
| the taxable year to the extent excluded from gross
| 8 |
| income in the computation of taxable income;
| 9 |
| (B) An amount equal to the amount of tax imposed by | 10 |
| this Act to the
extent deducted from gross income in | 11 |
| the computation of taxable income
for the taxable year;
| 12 |
| (C) In the case of a regulated investment company, | 13 |
| an amount equal to
the excess of (i) the net long-term | 14 |
| capital gain for the taxable year, over
(ii) the amount | 15 |
| of the capital gain dividends designated as such in | 16 |
| accordance
with Section 852(b)(3)(C) of the Internal | 17 |
| Revenue Code and any amount
designated under Section | 18 |
| 852(b)(3)(D) of the Internal Revenue Code,
| 19 |
| attributable to the taxable year (this amendatory Act | 20 |
| of 1995
(Public Act 89-89) is declarative of existing | 21 |
| law and is not a new
enactment);
| 22 |
| (D) The amount of any net operating loss deduction | 23 |
| taken in arriving
at taxable income, other than a net | 24 |
| operating loss carried forward from a
taxable year | 25 |
| ending prior to December 31, 1986;
| 26 |
| (E) For taxable years in which a net operating loss | 27 |
| carryback or
carryforward from a taxable year ending | 28 |
| prior to December 31, 1986 is an
element of taxable | 29 |
| income under paragraph (1) of subsection (e) or
| 30 |
| subparagraph (E) of paragraph (2) of subsection (e), | 31 |
| the amount by which
addition modifications other than | 32 |
| those provided by this subparagraph (E)
exceeded | 33 |
| subtraction modifications in such earlier taxable | 34 |
| year, with the
following limitations applied in the |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| order that they are listed:
| 2 |
| (i) the addition modification relating to the | 3 |
| net operating loss
carried back or forward to the | 4 |
| taxable year from any taxable year ending
prior to | 5 |
| December 31, 1986 shall be reduced by the amount of | 6 |
| addition
modification under this subparagraph (E) | 7 |
| which related to that net operating
loss and which | 8 |
| was taken into account in calculating the base | 9 |
| income of an
earlier taxable year, and
| 10 |
| (ii) the addition modification relating to the | 11 |
| net operating loss
carried back or forward to the | 12 |
| taxable year from any taxable year ending
prior to | 13 |
| December 31, 1986 shall not exceed the amount of | 14 |
| such carryback or
carryforward;
| 15 |
| For taxable years in which there is a net operating | 16 |
| loss carryback or
carryforward from more than one other | 17 |
| taxable year ending prior to December
31, 1986, the | 18 |
| addition modification provided in this subparagraph | 19 |
| (E) shall
be the sum of the amounts computed | 20 |
| independently under the preceding
provisions of this | 21 |
| subparagraph (E) for each such taxable year;
| 22 |
| (E-5) For taxable years ending after December 31, | 23 |
| 1997, an
amount equal to any eligible remediation costs | 24 |
| that the corporation
deducted in computing adjusted | 25 |
| gross income and for which the
corporation claims a | 26 |
| credit under subsection (l) of Section 201;
| 27 |
| (E-10) For taxable years 2001 and thereafter, an | 28 |
| amount equal to the
bonus depreciation deduction (30% | 29 |
| of the adjusted basis of the qualified
property) taken | 30 |
| on the taxpayer's federal income tax return for the | 31 |
| taxable
year under subsection (k) of Section 168 of the | 32 |
| Internal Revenue Code; and
| 33 |
| (E-11) If the taxpayer reports a capital gain or | 34 |
| loss on the
taxpayer's federal income tax return for |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| the taxable year based on a sale or
transfer of | 2 |
| property for which the taxpayer was required in any | 3 |
| taxable year to
make an addition modification under | 4 |
| subparagraph (E-10), then an amount equal
to the | 5 |
| aggregate amount of the deductions taken in all taxable
| 6 |
| years under subparagraph (T) with respect to that | 7 |
| property;
| 8 |
| The taxpayer is required to make the addition | 9 |
| modification under this
subparagraph
only once with | 10 |
| respect to any one piece of property;
| 11 |
| (E-12) For taxable years ending on or after | 12 |
| December 31, 2004, to the extent not otherwise included | 13 |
| in base income, an amount equal to the amount of | 14 |
| dividends received, directly or indirectly, (including | 15 |
| amounts included in gross income pursuant to Sections | 16 |
| 951 through 964 of the Internal Revenue Code and | 17 |
| amounts included in gross income under Section 78 of | 18 |
| the Internal Revenue Code) with respect to the stock of | 19 |
| a passive income affiliate, as defined in Section | 20 |
| 1501(a)(29) of this Act;
| 21 |
| (E-13) For taxable years ending on or after | 22 |
| December 31, 2004, an amount equal to the amount | 23 |
| otherwise allowed as a deduction in computing base | 24 |
| income for interest paid, accrued, or incurred, | 25 |
| directly or indirectly, to a foreign person who would | 26 |
| be a member of the same unitary business group but for | 27 |
| the fact the foreign person's business activity | 28 |
| outside the United States is 80% or more of the foreign | 29 |
| person's total business activity. The addition | 30 |
| modification required by this subparagraph shall be | 31 |
| reduced to the extent that dividends were included in | 32 |
| base income for the same taxable year and received by | 33 |
| the taxpayer or by a member of the taxpayer's unitary | 34 |
| business group (including amounts included in gross |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| income pursuant to Sections 951 through 964 of the | 2 |
| Internal Revenue Code and amounts included in gross | 3 |
| income under Section 78 of the Internal Revenue Code) | 4 |
| with respect to the stock of the same person to whom | 5 |
| the interest was paid, accrued, or incurred. This | 6 |
| subparagraph shall not apply to an item of interest | 7 |
| paid, accrued, or incurred, directly or indirectly, to | 8 |
| a foreign person who is subject in a foreign country to | 9 |
| a tax on or measured by net income with respect to such | 10 |
| interest;
| 11 |
| (E-14) For taxable years ending on or after | 12 |
| December 31, 2004, an amount equal to the amount of | 13 |
| intangible expenses and costs otherwise allowed as a | 14 |
| deduction in computing base income, and that were paid, | 15 |
| accrued, or incurred, directly or indirectly, to a | 16 |
| foreign person who would be a member of the same | 17 |
| unitary business group but for the fact that the | 18 |
| foreign person's business activity outside the United | 19 |
| States is 80% or more of that person's total business | 20 |
| activity. The addition modification required by this | 21 |
| subparagraph shall be reduced to the extent that | 22 |
| dividends were included in base income for the same | 23 |
| taxable year and received by the taxpayer or by a | 24 |
| member of the taxpayer's unitary business group | 25 |
| (including amounts included in gross income pursuant | 26 |
| to Sections 951 through 964 of the Internal Revenue | 27 |
| Code and amounts included in gross income under Section | 28 |
| 78 of the Internal Revenue Code) with respect to the | 29 |
| stock of the same person to whom the intangible | 30 |
| expenses and costs were directly or indirectly paid, | 31 |
| incurred, or accrued. The preceding sentence shall not | 32 |
| apply to the extent that the same dividends caused a | 33 |
| reduction to the addition modification required under | 34 |
| Section 203(b)(2)(E-13) of this Act. This subparagraph |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| shall not apply to any item of intangible expenses or | 2 |
| costs paid, accrued, or incurred, directly or | 3 |
| indirectly, from a transaction with a foreign person | 4 |
| who is subject in a foreign country to a tax on or | 5 |
| measured by net income with respect to such item.
As | 6 |
| used in this subparagraph, the term "intangible | 7 |
| expenses and costs" includes (1) expenses, losses, and | 8 |
| costs for, or related to, the direct or indirect | 9 |
| acquisition, use, maintenance or management, | 10 |
| ownership, sale, exchange, or any other disposition of | 11 |
| intangible property; (2) losses incurred, directly or | 12 |
| indirectly, from factoring transactions or discounting | 13 |
| transactions; (3) royalty, patent, technical, and | 14 |
| copyright fees; (4) licensing fees; and (5) other | 15 |
| similar expenses and costs.
For purposes of this | 16 |
| subparagraph, "intangible property" includes patents, | 17 |
| patent applications, trade names, trademarks, service | 18 |
| marks, copyrights, mask works, trade secrets, and | 19 |
| similar types of intangible assets;
| 20 |
| and by deducting from the total so obtained the sum of the | 21 |
| following
amounts:
| 22 |
| (F) An amount equal to the amount of any tax | 23 |
| imposed by this Act
which was refunded to the taxpayer | 24 |
| and included in such total for the
taxable year;
| 25 |
| (G) An amount equal to any amount included in such | 26 |
| total under
Section 78 of the Internal Revenue Code;
| 27 |
| (H) In the case of a regulated investment company, | 28 |
| an amount equal
to the amount of exempt interest | 29 |
| dividends as defined in subsection (b)
(5) of Section | 30 |
| 852 of the Internal Revenue Code, paid to shareholders
| 31 |
| for the taxable year;
| 32 |
| (I) With the exception of any amounts subtracted | 33 |
| under subparagraph
(J),
an amount equal to the sum of | 34 |
| all amounts disallowed as
deductions by (i) Sections |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| 171(a) (2), and 265(a)(2) and amounts disallowed as
| 2 |
| interest expense by Section 291(a)(3) of the Internal | 3 |
| Revenue Code, as now
or hereafter amended, and all | 4 |
| amounts of expenses allocable to interest and
| 5 |
| disallowed as deductions by Section 265(a)(1) of the | 6 |
| Internal Revenue Code,
as now or hereafter amended;
and | 7 |
| (ii) for taxable years
ending on or after August 13, | 8 |
| 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and | 9 |
| 832(b)(5)(B)(i) of the Internal Revenue Code; the
| 10 |
| provisions of this
subparagraph are exempt from the | 11 |
| provisions of Section 250;
| 12 |
| (J) An amount equal to all amounts included in such | 13 |
| total which are
exempt from taxation by this State | 14 |
| either by reason of its statutes or
Constitution
or by | 15 |
| reason of the Constitution, treaties or statutes of the | 16 |
| United States;
provided that, in the case of any | 17 |
| statute of this State that exempts income
derived from | 18 |
| bonds or other obligations from the tax imposed under | 19 |
| this Act,
the amount exempted shall be the interest net | 20 |
| of bond premium amortization;
| 21 |
| (K) An amount equal to those dividends included in | 22 |
| such total
which were paid by a corporation which | 23 |
| conducts
business operations in an Enterprise Zone or | 24 |
| zones created under
the Illinois Enterprise Zone Act | 25 |
| and conducts substantially all of its
operations in an | 26 |
| Enterprise Zone or zones;
| 27 |
| (L) An amount equal to those dividends included in | 28 |
| such total that
were paid by a corporation that | 29 |
| conducts business operations in a federally
designated | 30 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 31 |
| High Impact
Business located in Illinois; provided | 32 |
| that dividends eligible for the
deduction provided in | 33 |
| subparagraph (K) of paragraph 2 of this subsection
| 34 |
| shall not be eligible for the deduction provided under |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| this subparagraph
(L);
| 2 |
| (M) For any taxpayer that is a financial | 3 |
| organization within the meaning
of Section 304(c) of | 4 |
| this Act, an amount included in such total as interest
| 5 |
| income from a loan or loans made by such taxpayer to a | 6 |
| borrower, to the extent
that such a loan is secured by | 7 |
| property which is eligible for the Enterprise
Zone | 8 |
| Investment Credit. To determine the portion of a loan | 9 |
| or loans that is
secured by property eligible for a | 10 |
| Section 201(f) investment
credit to the borrower, the | 11 |
| entire principal amount of the loan or loans
between | 12 |
| the taxpayer and the borrower should be divided into | 13 |
| the basis of the
Section 201(f) investment credit | 14 |
| property which secures the
loan or loans, using for | 15 |
| this purpose the original basis of such property on
the | 16 |
| date that it was placed in service in the
Enterprise | 17 |
| Zone. The subtraction modification available to | 18 |
| taxpayer in any
year under this subsection shall be | 19 |
| that portion of the total interest paid
by the borrower | 20 |
| with respect to such loan attributable to the eligible
| 21 |
| property as calculated under the previous sentence;
| 22 |
| (M-1) For any taxpayer that is a financial | 23 |
| organization within the
meaning of Section 304(c) of | 24 |
| this Act, an amount included in such total as
interest | 25 |
| income from a loan or loans made by such taxpayer to a | 26 |
| borrower,
to the extent that such a loan is secured by | 27 |
| property which is eligible for
the High Impact Business | 28 |
| Investment Credit. To determine the portion of a
loan | 29 |
| or loans that is secured by property eligible for a | 30 |
| Section 201(h) investment credit to the borrower, the | 31 |
| entire principal amount of
the loan or loans between | 32 |
| the taxpayer and the borrower should be divided into
| 33 |
| the basis of the Section 201(h) investment credit | 34 |
| property which
secures the loan or loans, using for |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| this purpose the original basis of such
property on the | 2 |
| date that it was placed in service in a federally | 3 |
| designated
Foreign Trade Zone or Sub-Zone located in | 4 |
| Illinois. No taxpayer that is
eligible for the | 5 |
| deduction provided in subparagraph (M) of paragraph | 6 |
| (2) of
this subsection shall be eligible for the | 7 |
| deduction provided under this
subparagraph (M-1). The | 8 |
| subtraction modification available to taxpayers in
any | 9 |
| year under this subsection shall be that portion of the | 10 |
| total interest
paid by the borrower with respect to | 11 |
| such loan attributable to the eligible
property as | 12 |
| calculated under the previous sentence;
| 13 |
| (N) Two times any contribution made during the | 14 |
| taxable year to a
designated zone organization to the | 15 |
| extent that the contribution (i)
qualifies as a | 16 |
| charitable contribution under subsection (c) of | 17 |
| Section 170
of the Internal Revenue Code and (ii) must, | 18 |
| by its terms, be used for a
project approved by the | 19 |
| Department of Commerce and Economic Opportunity
| 20 |
| Community Affairs under Section 11 of the Illinois | 21 |
| Enterprise Zone Act;
| 22 |
| (O) An amount equal to: (i) 85% for taxable years | 23 |
| ending on or before
December 31, 1992, or, a percentage | 24 |
| equal to the percentage allowable under
Section | 25 |
| 243(a)(1) of the Internal Revenue Code of 1986 for | 26 |
| taxable years ending
after December 31, 1992, of the | 27 |
| amount by which dividends included in taxable
income | 28 |
| and received from a corporation that is not created or | 29 |
| organized under
the laws of the United States or any | 30 |
| state or political subdivision thereof,
including, for | 31 |
| taxable years ending on or after December 31, 1988, | 32 |
| dividends
received or deemed received or paid or deemed | 33 |
| paid under Sections 951 through
964 of the Internal | 34 |
| Revenue Code, exceed the amount of the modification
|
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| provided under subparagraph (G) of paragraph (2) of | 2 |
| this subsection (b) which
is related to such dividends; | 3 |
| plus (ii) 100% of the amount by which dividends,
| 4 |
| included in taxable income and received, including, | 5 |
| for taxable years ending on
or after December 31, 1988, | 6 |
| dividends received or deemed received or paid or
deemed | 7 |
| paid under Sections 951 through 964 of the Internal | 8 |
| Revenue Code, from
any such corporation specified in | 9 |
| clause (i) that would but for the provisions
of Section | 10 |
| 1504 (b) (3) of the Internal Revenue Code be treated as | 11 |
| a member of
the affiliated group which includes the | 12 |
| dividend recipient, exceed the amount
of the | 13 |
| modification provided under subparagraph (G) of | 14 |
| paragraph (2) of this
subsection (b) which is related | 15 |
| to such dividends;
| 16 |
| (P) An amount equal to any contribution made to a | 17 |
| job training project
established pursuant to the Tax | 18 |
| Increment Allocation Redevelopment Act;
| 19 |
| (Q) An amount equal to the amount of the deduction | 20 |
| used to compute the
federal income tax credit for | 21 |
| restoration of substantial amounts held under
claim of | 22 |
| right for the taxable year pursuant to Section 1341 of | 23 |
| the
Internal Revenue Code of 1986;
| 24 |
| (R) In the case of an attorney-in-fact with respect | 25 |
| to whom an
interinsurer or a reciprocal insurer has | 26 |
| made the election under Section 835 of
the Internal | 27 |
| Revenue Code, 26 U.S.C. 835, an amount equal to the | 28 |
| excess, if
any, of the amounts paid or incurred by that | 29 |
| interinsurer or reciprocal insurer
in the taxable year | 30 |
| to the attorney-in-fact over the deduction allowed to | 31 |
| that
interinsurer or reciprocal insurer with respect | 32 |
| to the attorney-in-fact under
Section 835(b) of the | 33 |
| Internal Revenue Code for the taxable year;
| 34 |
| (S) For taxable years ending on or after December |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| 31, 1997, in the
case of a Subchapter
S corporation, an | 2 |
| amount equal to all amounts of income allocable to a
| 3 |
| shareholder subject to the Personal Property Tax | 4 |
| Replacement Income Tax imposed
by subsections (c) and | 5 |
| (d) of Section 201 of this Act, including amounts
| 6 |
| allocable to organizations exempt from federal income | 7 |
| tax by reason of Section
501(a) of the Internal Revenue | 8 |
| Code. This subparagraph (S) is exempt from
the | 9 |
| provisions of Section 250;
| 10 |
| (T) For taxable years 2001 and thereafter, for the | 11 |
| taxable year in
which the bonus depreciation deduction | 12 |
| (30% of the adjusted basis of the
qualified property) | 13 |
| is taken on the taxpayer's federal income tax return | 14 |
| under
subsection (k) of Section 168 of the Internal | 15 |
| Revenue Code and for each
applicable taxable year | 16 |
| thereafter, an amount equal to "x", where:
| 17 |
| (1) "y" equals the amount of the depreciation | 18 |
| deduction taken for the
taxable year
on the | 19 |
| taxpayer's federal income tax return on property | 20 |
| for which the bonus
depreciation deduction (30% of | 21 |
| the adjusted basis of the qualified property)
was | 22 |
| taken in any year under subsection (k) of Section | 23 |
| 168 of the Internal
Revenue Code, but not including | 24 |
| the bonus depreciation deduction; and
| 25 |
| (2) "x" equals "y" multiplied by 30 and then | 26 |
| divided by 70 (or "y"
multiplied by 0.429).
| 27 |
| The aggregate amount deducted under this | 28 |
| subparagraph in all taxable
years for any one piece of | 29 |
| 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 the | 32 |
| taxpayer's federal income tax return under
subsection | 33 |
| (k) of Section 168 of the Internal Revenue Code; and
| 34 |
| (U) If the taxpayer reports a capital gain or loss |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| on the taxpayer's
federal income tax return for the | 2 |
| taxable year based on a sale or transfer of
property | 3 |
| for which the taxpayer was required in any taxable year | 4 |
| to make an
addition modification under subparagraph | 5 |
| (E-10), then an amount equal to that
addition | 6 |
| modification.
| 7 |
| The taxpayer is allowed to take the deduction under | 8 |
| this subparagraph
only once with respect to any one | 9 |
| piece of property ;
.
| 10 |
| (V) The amount of: (i) any interest income (net of | 11 |
| the deductions allocable thereto) taken into account | 12 |
| for the taxable year with respect to a transaction with | 13 |
| a taxpayer that is required to make an addition | 14 |
| modification with respect to such transaction under | 15 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-13), | 16 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | 17 |
| the amount of such addition modification and
(ii) any | 18 |
| income from intangible property (net of the deductions | 19 |
| allocable thereto) taken into account for the taxable | 20 |
| year with respect to a transaction with a taxpayer that | 21 |
| is required to make an addition modification with | 22 |
| respect to such transaction under Section | 23 |
| 203(a)(2)(D-18), 203(b)(2)(E-14), 203(c)(2)(G-13), or | 24 |
| 203(d)(2)(D-8), but not to exceed the amount of such | 25 |
| addition modification;
| 26 |
| (W) An amount equal to the interest income taken | 27 |
| into account for the taxable year (net of the | 28 |
| deductions allocable thereto) with respect to | 29 |
| transactions with a foreign person who would be a | 30 |
| member of the taxpayer's unitary business group but for | 31 |
| the fact that the foreign person's business activity | 32 |
| outside the United States is 80% or more of that | 33 |
| person's total business activity, but not to exceed the | 34 |
| addition modification required to be made for the same |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| taxable year under Section 203(b)(2)(E-13) for | 2 |
| interest paid, accrued, or incurred, directly or | 3 |
| indirectly, to the same foreign person; and
| 4 |
| (X) An amount equal to the income from intangible | 5 |
| property taken into account for the taxable year (net | 6 |
| of the deductions allocable thereto) with respect to | 7 |
| transactions with a foreign person who would be a | 8 |
| member of the taxpayer's unitary business group but for | 9 |
| the fact that the foreign person's business activity | 10 |
| outside the United States is 80% or more of that | 11 |
| person's total business activity, but not to exceed the | 12 |
| addition modification required to be made for the same | 13 |
| taxable year under Section 203(b)(2)(E-14) for | 14 |
| intangible expenses and costs paid, accrued, or | 15 |
| incurred, directly or indirectly, to the same foreign | 16 |
| person.
| 17 |
| (3) Special rule. For purposes of paragraph (2) (A), | 18 |
| "gross income"
in the case of a life insurance company, for | 19 |
| tax years ending on and after
December 31, 1994,
shall mean | 20 |
| the gross investment income for the taxable year.
| 21 |
| (c) Trusts and estates.
| 22 |
| (1) In general. In the case of a trust or estate, base | 23 |
| income means
an amount equal to the taxpayer's taxable | 24 |
| income for the taxable year as
modified by paragraph (2).
| 25 |
| (2) Modifications. Subject to the provisions of | 26 |
| paragraph (3), the
taxable income referred to in paragraph | 27 |
| (1) shall be modified by adding
thereto the sum of the | 28 |
| following amounts:
| 29 |
| (A) An amount equal to all amounts paid or accrued | 30 |
| to the taxpayer
as interest or dividends during the | 31 |
| taxable year to the extent excluded
from gross income | 32 |
| in the computation of taxable income;
| 33 |
| (B) In the case of (i) an estate, $600; (ii) a |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| trust which, under
its governing instrument, is | 2 |
| required to distribute all of its income
currently, | 3 |
| $300; and (iii) any other trust, $100, but in each such | 4 |
| case,
only to the extent such amount was deducted in | 5 |
| the computation of
taxable income;
| 6 |
| (C) An amount equal to the amount of tax imposed by | 7 |
| this Act to the
extent deducted from gross income in | 8 |
| the computation of taxable income
for the taxable year;
| 9 |
| (D) The amount of any net operating loss deduction | 10 |
| taken in arriving at
taxable income, other than a net | 11 |
| operating loss carried forward from a
taxable year | 12 |
| ending prior to December 31, 1986;
| 13 |
| (E) For taxable years in which a net operating loss | 14 |
| carryback or
carryforward from a taxable year ending | 15 |
| prior to December 31, 1986 is an
element of taxable | 16 |
| income under paragraph (1) of subsection (e) or | 17 |
| subparagraph
(E) of paragraph (2) of subsection (e), | 18 |
| the amount by which addition
modifications other than | 19 |
| those provided by this subparagraph (E) exceeded
| 20 |
| subtraction modifications in such taxable year, with | 21 |
| the following limitations
applied in the order that | 22 |
| they are listed:
| 23 |
| (i) the addition modification relating to the | 24 |
| net operating loss
carried back or forward to the | 25 |
| taxable year from any taxable year ending
prior to | 26 |
| December 31, 1986 shall be reduced by the amount of | 27 |
| addition
modification under this subparagraph (E) | 28 |
| which related to that net
operating loss and which | 29 |
| was taken into account in calculating the base
| 30 |
| income of an earlier taxable year, and
| 31 |
| (ii) 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 not exceed the amount of |
|
|
|
09300SB2210ham001 |
- 27 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| such carryback or
carryforward;
| 2 |
| For taxable years in which there is a net operating | 3 |
| loss carryback or
carryforward from more than one other | 4 |
| taxable year ending prior to December
31, 1986, the | 5 |
| addition modification provided in this subparagraph | 6 |
| (E) shall
be the sum of the amounts computed | 7 |
| independently under the preceding
provisions of this | 8 |
| subparagraph (E) for each such taxable year;
| 9 |
| (F) For taxable years ending on or after January 1, | 10 |
| 1989, an amount
equal to the tax deducted pursuant to | 11 |
| Section 164 of the Internal Revenue
Code if the trust | 12 |
| or estate is claiming the same tax for purposes of the
| 13 |
| Illinois foreign tax credit under Section 601 of this | 14 |
| Act;
| 15 |
| (G) An amount equal to the amount of the capital | 16 |
| gain deduction
allowable under the Internal Revenue | 17 |
| Code, to the extent deducted from
gross income in the | 18 |
| computation of taxable income;
| 19 |
| (G-5) For taxable years ending after December 31, | 20 |
| 1997, an
amount equal to any eligible remediation costs | 21 |
| that the trust or estate
deducted in computing adjusted | 22 |
| gross income and for which the trust
or estate claims a | 23 |
| credit under subsection (l) of Section 201;
| 24 |
| (G-10) 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 |
| (G-11) 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 |
|
|
|
09300SB2210ham001 |
- 28 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| subparagraph (G-10), then an amount equal
to the | 2 |
| aggregate amount of the deductions taken in all taxable
| 3 |
| years under subparagraph (R) with respect to that | 4 |
| property;
| 5 |
| The taxpayer is required to make the addition | 6 |
| modification under this
subparagraph
only once with | 7 |
| respect to any one piece of property;
| 8 |
| (G-12) For taxable years ending on or after | 9 |
| December 31, 2004, an amount equal to the amount | 10 |
| otherwise allowed as a deduction in computing base | 11 |
| income for interest paid, accrued, or incurred, | 12 |
| directly or indirectly, to a foreign person who would | 13 |
| be a member of the same unitary business group but for | 14 |
| the fact that the foreign person's business activity | 15 |
| outside the United States is 80% or more of the foreign | 16 |
| person's total business activity. The addition | 17 |
| modification required by this subparagraph shall be | 18 |
| reduced to the extent that dividends were included in | 19 |
| base income for the same taxable year and received by | 20 |
| the taxpayer or by a member of the taxpayer's unitary | 21 |
| business group (including amounts included in gross | 22 |
| income pursuant to Sections 951 through 964 of the | 23 |
| Internal Revenue Code and amounts included in gross | 24 |
| income under Section 78 of the Internal Revenue Code) | 25 |
| with respect to the stock of the same person to whom | 26 |
| the interest was paid, accrued, or incurred. This | 27 |
| subparagraph shall not apply to an item of interest | 28 |
| paid, accrued, or incurred, directly or indirectly, to | 29 |
| a foreign person that is subject in a foreign country | 30 |
| to a tax on or measured by net income with respect to | 31 |
| such interest;
| 32 |
| (G-13) For taxable years ending on or after | 33 |
| December 31, 2004, an amount equal to the amount of | 34 |
| intangible expenses and costs otherwise allowed as a |
|
|
|
09300SB2210ham001 |
- 29 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| deduction in computing base income, and that were paid, | 2 |
| accrued, or incurred, directly or indirectly, to a | 3 |
| foreign person who would be a member of the same | 4 |
| unitary business group but for the fact that the | 5 |
| foreign person's business activity outside the United | 6 |
| States is 80% or more of that person's total business | 7 |
| activity. The addition modification required by this | 8 |
| subparagraph shall be reduced to the extent that | 9 |
| dividends were included in base income for the same | 10 |
| taxable year and received by the taxpayer or by a | 11 |
| member of the taxpayer's unitary business group | 12 |
| (including amounts included in gross income pursuant | 13 |
| to Sections 951 through 964 of the Internal Revenue | 14 |
| Code and amounts included in gross income under Section | 15 |
| 78 of the Internal Revenue Code) with respect to the | 16 |
| stock of the same person to whom the intangible | 17 |
| expenses and costs were directly or indirectly paid, | 18 |
| incurred, or accrued. The preceding sentence shall not | 19 |
| apply to the extent that the same dividends caused a | 20 |
| reduction to the addition modification required under | 21 |
| Section 203(c)(2)(G-12) of this Act. This subparagraph | 22 |
| shall not apply to any item of intangible expenses or | 23 |
| costs paid, accrued, or incurred, directly or | 24 |
| indirectly, from a transaction with a foreign person | 25 |
| who is subject in a foreign country to a tax on or | 26 |
| measured by net income with respect to such item.
As | 27 |
| used in this subparagraph, the term "intangible | 28 |
| expenses and costs" includes: (1) expenses, losses, | 29 |
| and costs for or related to the direct or indirect | 30 |
| acquisition, use, maintenance or management, | 31 |
| ownership, sale, exchange, or any other disposition of | 32 |
| intangible property; (2) losses incurred, directly or | 33 |
| indirectly, from factoring transactions or discounting | 34 |
| transactions; (3) royalty, patent, technical, and |
|
|
|
09300SB2210ham001 |
- 30 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| copyright fees; (4) licensing fees; and (5) other | 2 |
| similar expenses and costs. For purposes of this | 3 |
| subparagraph, "intangible property" includes patents, | 4 |
| patent applications, trade names, trademarks, service | 5 |
| marks, copyrights, mask works, trade secrets, and | 6 |
| similar types of intangible assets;
| 7 |
| and by deducting from the total so obtained the sum of the | 8 |
| following
amounts:
| 9 |
| (H) An amount equal to all amounts included in such | 10 |
| total pursuant
to the provisions of Sections 402(a), | 11 |
| 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | 12 |
| Internal Revenue Code or included in such total as
| 13 |
| distributions under the provisions of any retirement | 14 |
| or disability plan for
employees of any governmental | 15 |
| agency or unit, or retirement payments to
retired | 16 |
| partners, which payments are excluded in computing net | 17 |
| earnings
from self employment by Section 1402 of the | 18 |
| Internal Revenue Code and
regulations adopted pursuant | 19 |
| 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 taxpayer | 23 |
| and included in such total for the
taxable year;
| 24 |
| (K) An amount equal to all amounts included in | 25 |
| taxable income as
modified by subparagraphs (A), (B), | 26 |
| (C), (D), (E), (F) and (G) which
are exempt from | 27 |
| taxation by this State either by reason of its statutes | 28 |
| or
Constitution
or by reason of the Constitution, | 29 |
| treaties or statutes of the United States;
provided | 30 |
| that, in the case of any statute of this State that | 31 |
| exempts income
derived from bonds or other obligations | 32 |
| from the tax imposed under this Act,
the amount | 33 |
| exempted shall be the interest net of bond premium | 34 |
| amortization;
|
|
|
|
09300SB2210ham001 |
- 31 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| (L) With the exception of any amounts subtracted | 2 |
| under subparagraph
(K),
an amount equal to the sum of | 3 |
| all amounts disallowed as
deductions by (i) Sections | 4 |
| 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | 5 |
| as now or hereafter amended, and all amounts of | 6 |
| expenses allocable
to interest and disallowed as | 7 |
| deductions by Section 265(1) of the Internal
Revenue | 8 |
| Code of 1954, as now or hereafter amended;
and (ii) for | 9 |
| taxable years
ending on or after August 13, 1999, | 10 |
| Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 11 |
| the Internal Revenue Code; the provisions of this
| 12 |
| subparagraph are exempt from the provisions of Section | 13 |
| 250;
| 14 |
| (M) An amount equal to those dividends included in | 15 |
| such total
which were paid by a corporation which | 16 |
| conducts business operations in an
Enterprise Zone or | 17 |
| zones created under the Illinois Enterprise Zone Act | 18 |
| and
conducts substantially all of its operations in an | 19 |
| Enterprise Zone or Zones;
| 20 |
| (N) An amount equal to any contribution made to a | 21 |
| job training
project established pursuant to the Tax | 22 |
| Increment Allocation
Redevelopment Act;
| 23 |
| (O) An amount equal to those dividends included in | 24 |
| such total
that were paid by a corporation that | 25 |
| conducts business operations in a
federally designated | 26 |
| Foreign Trade Zone or Sub-Zone and that is designated
a | 27 |
| High Impact Business located in Illinois; provided | 28 |
| that dividends eligible
for the deduction provided in | 29 |
| subparagraph (M) of paragraph (2) of this
subsection | 30 |
| shall not be eligible for the deduction provided under | 31 |
| this
subparagraph (O);
| 32 |
| (P) An amount equal to the amount of the deduction | 33 |
| used to compute the
federal income tax credit for | 34 |
| restoration of substantial amounts held under
claim of |
|
|
|
09300SB2210ham001 |
- 32 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| right for the taxable year pursuant to Section 1341 of | 2 |
| the
Internal Revenue Code of 1986;
| 3 |
| (Q) For taxable year 1999 and thereafter, an amount | 4 |
| equal to the
amount of any
(i) distributions, to the | 5 |
| extent includible in gross income for
federal income | 6 |
| tax purposes, made to the taxpayer because of
his or | 7 |
| her status as a victim of
persecution for racial or | 8 |
| religious reasons by Nazi Germany or any other Axis
| 9 |
| regime or as an heir of the victim and (ii) items
of | 10 |
| income, to the extent
includible in gross income for | 11 |
| federal income tax purposes, attributable to,
derived | 12 |
| from or in any way related to assets stolen from, | 13 |
| hidden from, or
otherwise lost to a victim of
| 14 |
| persecution for racial or religious reasons by Nazi
| 15 |
| Germany or any other Axis regime
immediately prior to, | 16 |
| during, and immediately after World War II, including,
| 17 |
| but
not limited to, interest on the proceeds receivable | 18 |
| as insurance
under policies issued to a victim of | 19 |
| persecution for racial or religious
reasons by Nazi | 20 |
| Germany or any other Axis regime by European insurance
| 21 |
| companies
immediately prior to and during World War II;
| 22 |
| provided, however, this subtraction from federal | 23 |
| adjusted gross income does not
apply to assets acquired | 24 |
| with such assets or with the proceeds from the sale of
| 25 |
| such assets; provided, further, this paragraph shall | 26 |
| only apply to a taxpayer
who was the first recipient of | 27 |
| such assets after their recovery and who is a
victim of
| 28 |
| persecution for racial or religious reasons
by Nazi | 29 |
| Germany or any other Axis regime or as an heir of the | 30 |
| victim. The
amount of and the eligibility for any | 31 |
| public assistance, benefit, or
similar entitlement is | 32 |
| not affected by the inclusion of items (i) and (ii) of
| 33 |
| this paragraph in gross income for federal income tax | 34 |
| purposes.
This paragraph is exempt from the provisions |
|
|
|
09300SB2210ham001 |
- 33 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| of Section 250;
| 2 |
| (R) For taxable years 2001 and thereafter, for the | 3 |
| taxable year in
which the bonus depreciation deduction | 4 |
| (30% of the adjusted basis of the
qualified property) | 5 |
| is taken on the taxpayer's federal income tax return | 6 |
| under
subsection (k) of Section 168 of the Internal | 7 |
| Revenue Code and for each
applicable taxable year | 8 |
| thereafter, an amount equal to "x", where:
| 9 |
| (1) "y" equals the amount of the depreciation | 10 |
| deduction taken for the
taxable year
on the | 11 |
| taxpayer's federal income tax return on property | 12 |
| for which the bonus
depreciation deduction (30% of | 13 |
| the adjusted basis of the qualified property)
was | 14 |
| taken in any year under subsection (k) of Section | 15 |
| 168 of the Internal
Revenue Code, but not including | 16 |
| the bonus depreciation deduction; and
| 17 |
| (2) "x" equals "y" multiplied by 30 and then | 18 |
| divided by 70 (or "y"
multiplied by 0.429).
| 19 |
| The aggregate amount deducted under this | 20 |
| subparagraph in all taxable
years for any one piece of | 21 |
| property may not exceed the amount of the bonus
| 22 |
| depreciation deduction (30% of the adjusted basis of | 23 |
| the qualified property)
taken on that property on the | 24 |
| taxpayer's federal income tax return under
subsection | 25 |
| (k) of Section 168 of the Internal Revenue Code; and
| 26 |
| (S) If the taxpayer reports a capital gain or loss | 27 |
| on the taxpayer's
federal income tax return for the | 28 |
| taxable year based on a sale or transfer of
property | 29 |
| for which the taxpayer was required in any taxable year | 30 |
| to make an
addition modification under subparagraph | 31 |
| (G-10), then an amount equal to that
addition | 32 |
| modification.
| 33 |
| The taxpayer is allowed to take the deduction under | 34 |
| this subparagraph
only once with respect to any one |
|
|
|
09300SB2210ham001 |
- 34 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| piece of property ;
.
| 2 |
| (T) The amount of (i) any interest income (net of | 3 |
| the deductions allocable thereto) taken into account | 4 |
| for the taxable year with respect to a transaction with | 5 |
| a taxpayer that is required to make an addition | 6 |
| modification with respect to such transaction under | 7 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-13), | 8 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | 9 |
| the amount of such addition modification and
(ii) any | 10 |
| income from intangible property (net of the deductions | 11 |
| allocable thereto) taken into account for the taxable | 12 |
| year with respect to a transaction with a taxpayer that | 13 |
| is required to make an addition modification with | 14 |
| respect to such transaction under Section | 15 |
| 203(a)(2)(D-18), 203(b)(2)(E-14), 203(c)(2)(G-13), or | 16 |
| 203(d)(2)(D-8), but not to exceed the amount of such | 17 |
| addition modification;
| 18 |
| (U) An amount equal to the interest income taken | 19 |
| into account for the taxable year (net of the | 20 |
| deductions allocable thereto) with respect to | 21 |
| transactions with a foreign person who would be a | 22 |
| member of the taxpayer's unitary business group but for | 23 |
| the fact the foreign person's business activity | 24 |
| outside the United States is 80% or more of that | 25 |
| person's total business activity, but not to exceed the | 26 |
| addition modification required to be made for the same | 27 |
| taxable year under Section 203(c)(2)(G-12) for | 28 |
| interest paid, accrued, or incurred, directly or | 29 |
| indirectly, to the same foreign person; and
| 30 |
| (V) An amount equal to the income from intangible | 31 |
| property taken into account for the taxable year (net | 32 |
| of the deductions allocable thereto) with respect to | 33 |
| transactions with a foreign person who would be a | 34 |
| member of the taxpayer's unitary business group but for |
|
|
|
09300SB2210ham001 |
- 35 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| the fact that the foreign person's business activity | 2 |
| outside the United States is 80% or more of that | 3 |
| person's total business activity, but not to exceed the | 4 |
| addition modification required to be made for the same | 5 |
| taxable year under Section 203(c)(2)(G-13) for | 6 |
| intangible expenses and costs paid, accrued, or | 7 |
| incurred, directly or indirectly, to the same foreign | 8 |
| person.
| 9 |
| (3) Limitation. The amount of any modification | 10 |
| otherwise required
under this subsection shall, under | 11 |
| regulations prescribed by the
Department, be adjusted by | 12 |
| any amounts included therein which were
properly paid, | 13 |
| credited, or required to be distributed, or permanently set
| 14 |
| aside for charitable purposes pursuant to Internal Revenue | 15 |
| Code Section
642(c) during the taxable year.
| 16 |
| (d) Partnerships.
| 17 |
| (1) In general. In the case of a partnership, base | 18 |
| income means an
amount equal to the taxpayer's taxable | 19 |
| income for the taxable year as
modified by paragraph (2).
| 20 |
| (2) Modifications. The taxable income referred to in | 21 |
| paragraph (1)
shall be modified by adding thereto the sum | 22 |
| of the following amounts:
| 23 |
| (A) An amount equal to all amounts paid or accrued | 24 |
| to the taxpayer as
interest or dividends during the | 25 |
| taxable year to the extent excluded from
gross income | 26 |
| in the computation of taxable income;
| 27 |
| (B) An amount equal to the amount of tax imposed by | 28 |
| this Act to the
extent deducted from gross income for | 29 |
| the taxable year;
| 30 |
| (C) The amount of deductions allowed to the | 31 |
| partnership pursuant to
Section 707 (c) of the Internal | 32 |
| Revenue Code in calculating its taxable income;
| 33 |
| (D) An amount equal to the amount of the capital |
|
|
|
09300SB2210ham001 |
- 36 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| gain deduction
allowable under the Internal Revenue | 2 |
| Code, to the extent deducted from
gross income in the | 3 |
| computation of taxable income;
| 4 |
| (D-5) For taxable years 2001 and thereafter, an | 5 |
| amount equal to the
bonus depreciation deduction (30% | 6 |
| of the adjusted basis of the qualified
property) taken | 7 |
| on the taxpayer's federal income tax return for the | 8 |
| taxable
year under subsection (k) of Section 168 of the | 9 |
| Internal Revenue Code; and
| 10 |
| (D-6) If the taxpayer reports a capital gain or | 11 |
| loss on the taxpayer's
federal income tax return for | 12 |
| the taxable year based on a sale or transfer of
| 13 |
| property for which the taxpayer was required in any | 14 |
| taxable year to make an
addition modification under | 15 |
| subparagraph (D-5), then an amount equal to the
| 16 |
| aggregate amount of the deductions taken in all taxable | 17 |
| years
under subparagraph (O) with respect to that | 18 |
| property;
| 19 |
| The taxpayer is required to make the addition | 20 |
| modification under this
subparagraph
only once with | 21 |
| respect to any one piece of property;
| 22 |
| (D-7) For taxable years ending on or after December | 23 |
| 31, 2004, an amount equal to the amount otherwise | 24 |
| allowed as a deduction in computing base income for | 25 |
| interest paid, accrued, or incurred, directly or | 26 |
| indirectly, to a foreign person who would be a member | 27 |
| of the same unitary business group but for the fact the | 28 |
| foreign person's business activity outside the United | 29 |
| States is 80% or more of the foreign person's total | 30 |
| business activity. The addition modification required | 31 |
| by this subparagraph shall be reduced to the extent | 32 |
| that dividends were included in base income for the | 33 |
| same taxable year and received by the taxpayer or by a | 34 |
| member of the taxpayer's unitary business group |
|
|
|
09300SB2210ham001 |
- 37 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| (including amounts included in gross income pursuant | 2 |
| to Sections 951 through 964 of the Internal Revenue | 3 |
| Code and amounts included in gross income under Section | 4 |
| 78 of the Internal Revenue Code) with respect to the | 5 |
| stock of the same person to whom the interest was paid, | 6 |
| accrued, or incurred. This subparagraph shall not | 7 |
| apply to an item of interest paid, accrued, or | 8 |
| incurred, directly or indirectly, to a foreign person | 9 |
| that is subject in a foreign country to a tax on or | 10 |
| measured by net income with respect to such interest; | 11 |
| and
| 12 |
| (D-8) For taxable years ending on or after December | 13 |
| 31, 2004, an amount equal to the amount of intangible | 14 |
| expenses and costs otherwise allowed as a deduction in | 15 |
| computing base income, and that were paid, accrued, or | 16 |
| incurred, directly or indirectly, to a foreign person | 17 |
| who would be a member of the same unitary business | 18 |
| group but for the fact that the foreign person's | 19 |
| business activity outside the United States is 80% or | 20 |
| more of that person's total business activity. The | 21 |
| addition modification required by this subparagraph | 22 |
| shall be reduced to the extent that dividends were | 23 |
| included in base income for the same taxable year and | 24 |
| received by the taxpayer or by a member of the | 25 |
| taxpayer's unitary business group (including amounts | 26 |
| included in gross income pursuant to Sections 951 | 27 |
| through 964 of the Internal Revenue Code and amounts | 28 |
| included in gross income under Section 78 of the | 29 |
| Internal Revenue Code) with respect to the stock of the | 30 |
| same person to whom the intangible expenses and costs | 31 |
| were directly or indirectly paid, incurred or accrued. | 32 |
| The preceding sentence shall not apply to the extent | 33 |
| that the same dividends caused a reduction to the | 34 |
| addition modification required under Section |
|
|
|
09300SB2210ham001 |
- 38 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| 203(d)(2)(D-7) of this Act. This subparagraph shall | 2 |
| not apply to any item of intangible expenses or costs | 3 |
| paid, accrued, or incurred, directly or indirectly, | 4 |
| from a transaction with a foreign person that is | 5 |
| subject in a foreign country to a tax on or measured by | 6 |
| net income with respect to such item.
As used in this | 7 |
| subparagraph, the term "intangible expenses and costs" | 8 |
| includes (1) expenses, losses, and costs for, or | 9 |
| related to, the direct or indirect acquisition, use, | 10 |
| maintenance or management, ownership, sale, exchange, | 11 |
| or any other disposition of intangible property; (2) | 12 |
| losses incurred, directly or indirectly, from | 13 |
| factoring transactions or discounting transactions; | 14 |
| (3) royalty, patent, technical, and copyright fees; | 15 |
| (4) licensing fees; and (5) other similar expenses and | 16 |
| costs. For purposes of this subparagraph, "intangible | 17 |
| property" includes patents, patent applications, trade | 18 |
| names, trademarks, service marks, copyrights, mask | 19 |
| works, trade secrets, and similar types of intangible | 20 |
| assets;
| 21 |
| and by deducting from the total so obtained the following | 22 |
| amounts:
| 23 |
| (E) The valuation limitation amount;
| 24 |
| (F) An amount equal to the amount of any tax | 25 |
| imposed by this Act which
was refunded to the taxpayer | 26 |
| and included in such total for the taxable year;
| 27 |
| (G) An amount equal to all amounts included in | 28 |
| taxable income as
modified by subparagraphs (A), (B), | 29 |
| (C) and (D) which are exempt from
taxation by this | 30 |
| State either by reason of its statutes or Constitution | 31 |
| or
by reason of
the Constitution, treaties or statutes | 32 |
| of the 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 |
|
|
|
09300SB2210ham001 |
- 39 - |
LRB093 15836 RCE 51238 a |
|
| 1 |
| this Act,
the amount exempted shall be the interest net | 2 |
| of bond premium amortization;
| 3 |
| (H) Any income of the partnership which | 4 |
| constitutes personal service
income as defined in | 5 |
| Section 1348 (b) (1) of the Internal Revenue Code (as
| 6 |
| in effect December 31, 1981) or a reasonable allowance | 7 |
| for compensation
paid or accrued for services rendered | 8 |
| by partners to the partnership,
whichever is greater;
| 9 |
| (I) An amount equal to all amounts of income | 10 |
| distributable to an entity
subject to the Personal | 11 |
| Property Tax Replacement Income Tax imposed by
| 12 |
| subsections (c) and (d) of Section 201 of this Act | 13 |
| including amounts
distributable to organizations | 14 |
| exempt from federal income tax by reason of
Section | 15 |
| 501(a) of the Internal Revenue Code;
| 16 |
| (J) With the exception of any amounts subtracted | 17 |
| under subparagraph
(G),
an amount equal to the sum of | 18 |
| all amounts disallowed as deductions
by (i) Sections | 19 |
| 171(a) (2), and 265(2) of the Internal Revenue Code of | 20 |
| 1954,
as now or hereafter amended, and all amounts of | 21 |
| expenses allocable to
interest and disallowed as | 22 |
| deductions by Section 265(1) of the Internal
Revenue | 23 |
| Code, as now or hereafter amended;
and (ii) for taxable | 24 |
| years
ending on or after August 13, 1999, Sections
| 25 |
| 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | 26 |
| Internal Revenue Code; the provisions of this
| 27 |
| subparagraph are exempt from the provisions of Section | 28 |
| 250;
| 29 |
| (K) An amount equal to those dividends included in | 30 |
| such total which were
paid by a corporation which | 31 |
| conducts business operations in an Enterprise
Zone or | 32 |
| zones created under the Illinois Enterprise Zone Act, | 33 |
| enacted by
the 82nd General Assembly, and
conducts | 34 |
| substantially all of its operations
in an Enterprise |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| Zone or Zones;
| 2 |
| (L) An amount equal to any contribution made to a | 3 |
| job training project
established pursuant to the Real | 4 |
| Property Tax Increment Allocation
Redevelopment Act;
| 5 |
| (M) An amount equal to those dividends included in | 6 |
| such total
that were paid by a corporation that | 7 |
| conducts business operations in a
federally designated | 8 |
| Foreign Trade Zone or Sub-Zone and that is designated a
| 9 |
| High Impact Business located in Illinois; provided | 10 |
| that dividends eligible
for the deduction provided in | 11 |
| subparagraph (K) of paragraph (2) of this
subsection | 12 |
| shall not be eligible for the deduction provided under | 13 |
| this
subparagraph (M);
| 14 |
| (N) An amount equal to the amount of the deduction | 15 |
| used to compute the
federal income tax credit for | 16 |
| restoration of substantial amounts held under
claim of | 17 |
| right for the taxable year pursuant to Section 1341 of | 18 |
| the
Internal Revenue Code of 1986;
| 19 |
| (O) For taxable years 2001 and thereafter, for the | 20 |
| taxable year in
which the bonus depreciation deduction | 21 |
| (30% of the adjusted basis of the
qualified property) | 22 |
| is taken on the taxpayer's federal income tax return | 23 |
| under
subsection (k) of Section 168 of the Internal | 24 |
| Revenue Code and for each
applicable taxable year | 25 |
| thereafter, an amount equal to "x", where:
| 26 |
| (1) "y" equals the amount of the depreciation | 27 |
| deduction taken for the
taxable year
on the | 28 |
| taxpayer's federal income tax return on property | 29 |
| for which the bonus
depreciation deduction (30% of | 30 |
| the adjusted basis of the qualified property)
was | 31 |
| taken in any year under subsection (k) of Section | 32 |
| 168 of the Internal
Revenue Code, but not including | 33 |
| the bonus depreciation deduction; and
| 34 |
| (2) "x" equals "y" multiplied by 30 and then |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| divided by 70 (or "y"
multiplied by 0.429).
| 2 |
| The aggregate amount deducted under this | 3 |
| subparagraph in all taxable
years for any one piece of | 4 |
| property may not exceed the amount of the bonus
| 5 |
| depreciation deduction (30% of the adjusted basis of | 6 |
| the qualified property)
taken on that property on the | 7 |
| taxpayer's federal income tax return under
subsection | 8 |
| (k) of Section 168 of the Internal Revenue Code; and
| 9 |
| (P) If the taxpayer reports a capital gain or loss | 10 |
| on the taxpayer's
federal income tax return for the | 11 |
| taxable year based on a sale or transfer of
property | 12 |
| for which the taxpayer was required in any taxable year | 13 |
| to make an
addition modification under subparagraph | 14 |
| (D-5), then an amount equal to that
addition | 15 |
| modification.
| 16 |
| The taxpayer is allowed to take the deduction under | 17 |
| this subparagraph
only once with respect to any one | 18 |
| piece of property ;
.
| 19 |
| (Q) The amount of (i) any interest income (net of | 20 |
| the deductions allocable thereto) taken into account | 21 |
| for the taxable year with respect to a transaction with | 22 |
| a taxpayer that is required to make an addition | 23 |
| modification with respect to such transaction under | 24 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-13), | 25 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | 26 |
| the amount of such addition modification and
(ii) any | 27 |
| income from intangible property (net of the deductions | 28 |
| allocable thereto) taken into account for the taxable | 29 |
| year with respect to a transaction with a taxpayer that | 30 |
| is required to make an addition modification with | 31 |
| respect to such transaction under Section | 32 |
| 203(a)(2)(D-18), 203(b)(2)(E-14), 203(c)(2)(G-13), or | 33 |
| 203(d)(2)(D-8), but not to exceed the amount of such | 34 |
| addition modification;
|
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| (R) An amount equal to the interest income taken | 2 |
| into account for the taxable year (net of the | 3 |
| deductions allocable thereto) with respect to | 4 |
| transactions with a foreign person who would be a | 5 |
| member of the taxpayer's unitary business group but for | 6 |
| the fact that the foreign person's business activity | 7 |
| outside the United States is 80% or more of that | 8 |
| person's total business activity, but not to exceed the | 9 |
| addition modification required to be made for the same | 10 |
| taxable year under Section 203(d)(2)(D-7) for interest | 11 |
| paid, accrued, or incurred, directly or indirectly, to | 12 |
| the same foreign person; and
| 13 |
| (S) An amount equal to the income from intangible | 14 |
| property taken into account for the taxable year (net | 15 |
| of the deductions allocable thereto) with respect to | 16 |
| transactions with a foreign person who would be a | 17 |
| member of the taxpayer's unitary business group but for | 18 |
| the fact that the foreign person's business activity | 19 |
| outside the United States is 80% or more of that | 20 |
| person's total business activity, but not to exceed the | 21 |
| addition modification required to be made for the same | 22 |
| taxable year under Section 203(d)(2)(D-8) for | 23 |
| intangible expenses and costs paid, accrued, or | 24 |
| incurred, directly or indirectly, to the same foreign | 25 |
| person.
| 26 |
| (e) Gross income; adjusted gross income; taxable income.
| 27 |
| (1) In general. Subject to the provisions of paragraph | 28 |
| (2) and
subsection (b) (3), for purposes of this Section | 29 |
| and Section 803(e), a
taxpayer's gross income, adjusted | 30 |
| gross income, or taxable income for
the taxable year shall | 31 |
| mean the amount of gross income, adjusted gross
income or | 32 |
| taxable income properly reportable for federal income tax
| 33 |
| purposes for the taxable year under the provisions of the |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| Internal
Revenue Code. Taxable income may be less than | 2 |
| zero. However, for taxable
years ending on or after | 3 |
| December 31, 1986, net operating loss
carryforwards from | 4 |
| taxable years ending prior to December 31, 1986, may not
| 5 |
| exceed the sum of federal taxable income for the taxable | 6 |
| year before net
operating loss deduction, plus the excess | 7 |
| of addition modifications over
subtraction modifications | 8 |
| for the taxable year. For taxable years ending
prior to | 9 |
| December 31, 1986, taxable income may never be an amount in | 10 |
| excess
of the net operating loss for the taxable year as | 11 |
| defined in subsections
(c) and (d) of Section 172 of the | 12 |
| Internal Revenue Code, provided that when
taxable income of | 13 |
| a corporation (other than a Subchapter S corporation),
| 14 |
| trust, or estate is less than zero and addition | 15 |
| modifications, other than
those provided by subparagraph | 16 |
| (E) of paragraph (2) of subsection (b) for
corporations or | 17 |
| subparagraph (E) of paragraph (2) of subsection (c) for
| 18 |
| trusts and estates, exceed subtraction modifications, an | 19 |
| addition
modification must be made under those | 20 |
| subparagraphs for any other taxable
year to which the | 21 |
| taxable income less than zero (net operating loss) is
| 22 |
| applied under Section 172 of the Internal Revenue Code or | 23 |
| under
subparagraph (E) of paragraph (2) of this subsection | 24 |
| (e) applied in
conjunction with Section 172 of the Internal | 25 |
| Revenue Code.
| 26 |
| (2) Special rule. For purposes of paragraph (1) of this | 27 |
| subsection,
the taxable income properly reportable for | 28 |
| federal income tax purposes
shall mean:
| 29 |
| (A) Certain life insurance companies. In the case | 30 |
| of a life
insurance company subject to the tax imposed | 31 |
| by Section 801 of the
Internal Revenue Code, life | 32 |
| insurance company taxable income, plus the
amount of | 33 |
| distribution from pre-1984 policyholder surplus | 34 |
| accounts as
calculated under Section 815a of the |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| Internal Revenue Code;
| 2 |
| (B) Certain other insurance companies. In the case | 3 |
| of mutual
insurance companies subject to the tax | 4 |
| imposed by Section 831 of the
Internal Revenue Code, | 5 |
| insurance company taxable income;
| 6 |
| (C) Regulated investment companies. In the case of | 7 |
| a regulated
investment company subject to the tax | 8 |
| imposed by Section 852 of the
Internal Revenue Code, | 9 |
| investment company taxable income;
| 10 |
| (D) Real estate investment trusts. In the case of a | 11 |
| real estate
investment trust subject to the tax imposed | 12 |
| by Section 857 of the
Internal Revenue Code, real | 13 |
| estate investment trust taxable income;
| 14 |
| (E) Consolidated corporations. In the case of a | 15 |
| corporation which
is a member of an affiliated group of | 16 |
| corporations filing a consolidated
income tax return | 17 |
| for the taxable year for federal income tax purposes,
| 18 |
| taxable income determined as if such corporation had | 19 |
| filed a separate
return for federal income tax purposes | 20 |
| for the taxable year and each
preceding taxable year | 21 |
| for which it was a member of an affiliated group.
For | 22 |
| purposes of this subparagraph, the taxpayer's separate | 23 |
| taxable
income shall be determined as if the election | 24 |
| provided by Section
243(b) (2) of the Internal Revenue | 25 |
| Code had been in effect for all such years;
| 26 |
| (F) Cooperatives. In the case of a cooperative | 27 |
| corporation or
association, the taxable income of such | 28 |
| organization determined in
accordance with the | 29 |
| provisions of Section 1381 through 1388 of the
Internal | 30 |
| Revenue Code;
| 31 |
| (G) Subchapter S corporations. In the case of: (i) | 32 |
| a Subchapter S
corporation for which there is in effect | 33 |
| an election for the taxable year
under Section 1362 of | 34 |
| the Internal Revenue Code, the taxable income of such
|
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| corporation determined in accordance with Section | 2 |
| 1363(b) of the Internal
Revenue Code, except that | 3 |
| taxable income shall take into
account those items | 4 |
| which are required by Section 1363(b)(1) of the
| 5 |
| Internal Revenue Code to be separately stated; and (ii) | 6 |
| a Subchapter
S corporation for which there is in effect | 7 |
| a federal election to opt out of
the provisions of the | 8 |
| Subchapter S Revision Act of 1982 and have applied
| 9 |
| instead the prior federal Subchapter S rules as in | 10 |
| effect on July 1, 1982,
the taxable income of such | 11 |
| corporation determined in accordance with the
federal | 12 |
| Subchapter S rules as in effect on July 1, 1982; and
| 13 |
| (H) Partnerships. In the case of a partnership, | 14 |
| taxable income
determined in accordance with Section | 15 |
| 703 of the Internal Revenue Code,
except that taxable | 16 |
| income shall take into account those items which are
| 17 |
| required by Section 703(a)(1) to be separately stated | 18 |
| but which would be
taken into account by an individual | 19 |
| in calculating his taxable income.
| 20 |
| (f) Valuation limitation amount.
| 21 |
| (1) In general. The valuation limitation amount | 22 |
| referred to in
subsections (a) (2) (G), (c) (2) (I) and | 23 |
| (d)(2) (E) is an amount equal to:
| 24 |
| (A) The sum of the pre-August 1, 1969 appreciation | 25 |
| amounts (to the
extent consisting of gain reportable | 26 |
| under the provisions of Section
1245 or 1250 of the | 27 |
| Internal Revenue Code) for all property in respect
of | 28 |
| which such gain was reported for the taxable year; plus
| 29 |
| (B) The lesser of (i) the sum of the pre-August 1, | 30 |
| 1969 appreciation
amounts (to the extent consisting of | 31 |
| capital gain) for all property in
respect of which such | 32 |
| gain was reported for federal income tax purposes
for | 33 |
| the taxable year, or (ii) the net capital gain for the |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| taxable year,
reduced in either case by any amount of | 2 |
| such gain included in the amount
determined under | 3 |
| subsection (a) (2) (F) or (c) (2) (H).
| 4 |
| (2) Pre-August 1, 1969 appreciation amount.
| 5 |
| (A) If the fair market value of property referred | 6 |
| to in paragraph
(1) was readily ascertainable on August | 7 |
| 1, 1969, the pre-August 1, 1969
appreciation amount for | 8 |
| such property is the lesser of (i) the excess of
such | 9 |
| fair market value over the taxpayer's basis (for | 10 |
| determining gain)
for such property on that date | 11 |
| (determined under the Internal Revenue
Code as in | 12 |
| effect on that date), or (ii) the total gain realized | 13 |
| and
reportable for federal income tax purposes in | 14 |
| respect of the sale,
exchange or other disposition of | 15 |
| such property.
| 16 |
| (B) If the fair market value of property referred | 17 |
| to in paragraph
(1) was not readily ascertainable on | 18 |
| August 1, 1969, the pre-August 1,
1969 appreciation | 19 |
| amount for such property is that amount which bears
the | 20 |
| same ratio to the total gain reported in respect of the | 21 |
| property for
federal income tax purposes for the | 22 |
| taxable year, as the number of full
calendar months in | 23 |
| that part of the taxpayer's holding period for the
| 24 |
| property ending July 31, 1969 bears to the number of | 25 |
| full calendar
months in the taxpayer's entire holding | 26 |
| period for the
property.
| 27 |
| (C) The Department shall prescribe such | 28 |
| regulations as may be
necessary to carry out the | 29 |
| purposes of this paragraph.
| 30 |
| (g) Double deductions. Unless specifically provided | 31 |
| otherwise, nothing
in this Section shall permit the same item | 32 |
| to be deducted more than once.
|
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| (h) Legislative intention. Except as expressly provided by | 2 |
| this
Section there shall be no modifications or limitations on | 3 |
| the amounts
of income, gain, loss or deduction taken into | 4 |
| account in determining
gross income, adjusted gross income or | 5 |
| taxable income for federal income
tax purposes for the taxable | 6 |
| year, or in the amount of such items
entering into the | 7 |
| computation of base income and net income under this
Act for | 8 |
| such taxable year, whether in respect of property values as of
| 9 |
| August 1, 1969 or otherwise.
| 10 |
| (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; | 11 |
| 91-357, eff.
7-29-99; 91-541, eff. 8-13-99; 91-676, eff. | 12 |
| 12-23-99; 91-845, eff. 6-22-00;
91-913, eff. 1-1-01; 92-16, | 13 |
| eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff.
8-17-01; | 14 |
| 92-603, eff. 6-28-02; 92-626, eff. 7-11-02; 92-651, eff. | 15 |
| 7-11-02;
92-846, eff. 8-23-02; revised 10-15-03.)
| 16 |
| (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| 17 |
| Sec. 1501. Definitions.
| 18 |
| (a) In general. When used in this Act, where not
otherwise | 19 |
| distinctly expressed or manifestly incompatible with the | 20 |
| intent
thereof:
| 21 |
| (1) Business income. The term "business income" means | 22 |
| income arising from
transactions and activity in the | 23 |
| regular course of the taxpayer's trade
or business, net of | 24 |
| the deductions allocable thereto, and includes income
from | 25 |
| tangible and intangible property if the acquisition, | 26 |
| management, and
disposition of the property constitute | 27 |
| integral parts of the taxpayer's
regular trade or business | 28 |
| operations. Such term does not include compensation
or the | 29 |
| deductions allocable thereto.
For each taxable year | 30 |
| beginning on or after January 1, 2003, a taxpayer may
elect | 31 |
| to treat all income other than compensation as business | 32 |
| income. This
election shall be made in accordance with | 33 |
| rules adopted by the Department and,
once made, shall be |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| irrevocable.
| 2 |
| (2) Commercial domicile. The term "commercial | 3 |
| domicile" means the
principal
place from which the trade or | 4 |
| business of the taxpayer is directed or managed.
| 5 |
| (3) Compensation. The term "compensation" means wages, | 6 |
| salaries,
commissions
and any other form of remuneration | 7 |
| paid to employees for personal services.
| 8 |
| (4) Corporation. The term "corporation" includes | 9 |
| associations, joint-stock
companies, insurance companies | 10 |
| and cooperatives. Any entity, including a
limited | 11 |
| liability company formed under the Illinois Limited | 12 |
| Liability Company
Act, shall be treated as a corporation if | 13 |
| it is so classified for federal
income tax purposes.
| 14 |
| (5) Department. The term "Department" means the | 15 |
| Department of Revenue of
this State.
| 16 |
| (6) Director. The term "Director" means the Director of | 17 |
| Revenue of this
State.
| 18 |
| (7) Fiduciary. The term "fiduciary" means a guardian, | 19 |
| trustee, executor,
administrator, receiver, or any person | 20 |
| acting in any fiduciary capacity for any
person.
| 21 |
| (8) Financial organization.
| 22 |
| (A) The term "financial organization" means
any
| 23 |
| bank, bank holding company, trust company, savings | 24 |
| bank, industrial bank,
land bank, safe deposit | 25 |
| company, private banker, savings and loan association,
| 26 |
| building and loan association, credit union, currency | 27 |
| exchange, cooperative
bank, small loan company, sales | 28 |
| finance company, investment company, or any
person | 29 |
| which is owned by a bank or bank holding company. For | 30 |
| the purpose of
this Section a "person" will include | 31 |
| only those persons which a bank holding
company may | 32 |
| acquire and hold an interest in, directly or | 33 |
| indirectly, under the
provisions of the Bank Holding | 34 |
| Company Act of 1956 (12 U.S.C. 1841, et seq.),
except |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| where interests in any person must be disposed of | 2 |
| within certain
required time limits under the Bank | 3 |
| Holding Company Act of 1956.
| 4 |
| (B) For purposes of subparagraph (A) of this | 5 |
| paragraph, the term
"bank" includes (i) any entity that | 6 |
| is regulated by the Comptroller of the
Currency under | 7 |
| the National Bank Act, or by the Federal Reserve Board, | 8 |
| or by
the
Federal Deposit Insurance Corporation and | 9 |
| (ii) any federally or State chartered
bank
operating as | 10 |
| a credit card bank.
| 11 |
| (C) For purposes of subparagraph (A) of this | 12 |
| paragraph, the term
"sales finance company" has the | 13 |
| meaning provided in the following item (i) or
(ii):
| 14 |
| (i) A person primarily engaged in one or more | 15 |
| of the following
businesses: the business of | 16 |
| purchasing customer receivables, the business
of | 17 |
| making loans upon the security of customer | 18 |
| receivables, the
business of making loans for the | 19 |
| express purpose of funding purchases of
tangible | 20 |
| personal property or services by the borrower, or | 21 |
| the business of
finance leasing. For purposes of | 22 |
| this item (i), "customer receivable"
means:
| 23 |
| (a) a retail installment contract or | 24 |
| retail charge agreement within
the
meaning
of | 25 |
| the Sales Finance Agency Act, the Retail | 26 |
| Installment Sales Act, or the
Motor Vehicle | 27 |
| Retail Installment Sales Act;
| 28 |
| (b) an installment, charge, credit, or | 29 |
| similar contract or agreement
arising from
the | 30 |
| sale of tangible personal property or services | 31 |
| in a transaction involving
a deferred payment | 32 |
| price payable in one or more installments | 33 |
| subsequent
to the sale; or
| 34 |
| (c) the outstanding balance of a contract |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| or agreement described in
provisions
(a) or (b) | 2 |
| of this item (i).
| 3 |
| A customer receivable need not provide for | 4 |
| payment of interest on
deferred
payments. A sales | 5 |
| finance company may purchase a customer receivable | 6 |
| from, or
make a loan secured by a customer | 7 |
| receivable to, the seller in the original
| 8 |
| transaction or to a person who purchased the | 9 |
| customer receivable directly or
indirectly from | 10 |
| that seller.
| 11 |
| (ii) A corporation meeting each of the | 12 |
| following criteria:
| 13 |
| (a) the corporation must be a member of an | 14 |
| "affiliated group" within
the
meaning of | 15 |
| Section 1504(a) of the Internal Revenue Code, | 16 |
| determined
without regard to Section 1504(b) | 17 |
| of the Internal Revenue Code;
| 18 |
| (b) more than 50% of the gross income of | 19 |
| the corporation for the
taxable
year
must be | 20 |
| interest income derived from qualifying loans. | 21 |
| A "qualifying
loan" is a loan made to a member | 22 |
| of the corporation's affiliated group that
| 23 |
| originates customer receivables (within the | 24 |
| meaning of item (i)) or to whom
customer | 25 |
| receivables originated by a member of the | 26 |
| affiliated group have been
transferred, to
the | 27 |
| extent the average outstanding balance of | 28 |
| loans from that corporation
to members of its | 29 |
| affiliated group during the taxable year do not | 30 |
| exceed
the limitation amount for that | 31 |
| corporation. The "limitation amount" for a
| 32 |
| corporation is the average outstanding | 33 |
| balances during the taxable year of
customer | 34 |
| receivables (within the meaning of item (i)) |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| originated by
all members of the affiliated | 2 |
| group.
If the average outstanding balances of | 3 |
| the
loans made by a corporation to members of | 4 |
| its affiliated group exceed the
limitation | 5 |
| amount, the interest income of that | 6 |
| corporation from qualifying
loans shall be | 7 |
| equal to its interest income from loans to | 8 |
| members of its
affiliated groups times a | 9 |
| fraction equal to the limitation amount | 10 |
| divided by
the average outstanding balances of | 11 |
| the loans made by that corporation to
members | 12 |
| of its affiliated group;
| 13 |
| (c) the total of all shareholder's equity | 14 |
| (including, without
limitation,
paid-in
| 15 |
| capital on common and preferred stock and | 16 |
| retained earnings) of the
corporation plus the | 17 |
| total of all of its loans, advances, and other
| 18 |
| obligations payable or owed to members of its | 19 |
| affiliated group may not
exceed 20% of the | 20 |
| total assets of the corporation at any time | 21 |
| during the tax
year; and
| 22 |
| (d) more than 50% of all interest-bearing | 23 |
| obligations of the
affiliated group payable to | 24 |
| persons outside the group determined in | 25 |
| accordance
with generally accepted accounting | 26 |
| principles must be obligations of the
| 27 |
| corporation.
| 28 |
| This amendatory Act of the 91st General Assembly is | 29 |
| declaratory of
existing
law.
| 30 |
| (D) Subparagraphs
(B) and (C) of this paragraph are | 31 |
| declaratory of
existing law and apply retroactively, | 32 |
| for all tax years beginning on or before
December 31, | 33 |
| 1996,
to all original returns, to all amended returns | 34 |
| filed no later than 30
days after the effective date of |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| this amendatory Act of 1996, and to all
notices issued | 2 |
| on or before the effective date of this amendatory Act | 3 |
| of 1996
under subsection (a) of Section 903, subsection | 4 |
| (a) of Section 904,
subsection (e) of Section 909, or | 5 |
| Section 912.
A taxpayer that is a "financial | 6 |
| organization" that engages in any transaction
with an | 7 |
| affiliate shall be a "financial organization" for all | 8 |
| purposes of this
Act.
| 9 |
| (E) For all tax years beginning on or
before | 10 |
| December 31, 1996, a taxpayer that falls within the | 11 |
| definition
of a
"financial organization" under | 12 |
| subparagraphs (B) or (C) of this paragraph, but
who | 13 |
| does
not fall within the definition of a "financial | 14 |
| organization" under the Proposed
Regulations issued by | 15 |
| the Department of Revenue on July 19, 1996, may
| 16 |
| irrevocably elect to apply the Proposed Regulations | 17 |
| for all of those years as
though the Proposed | 18 |
| Regulations had been lawfully promulgated, adopted, | 19 |
| and in
effect for all of those years. For purposes of | 20 |
| applying subparagraphs (B) or
(C) of
this
paragraph to | 21 |
| all of those years, the election allowed by this | 22 |
| subparagraph
applies only to the taxpayer making the | 23 |
| election and to those members of the
taxpayer's unitary | 24 |
| business group who are ordinarily required to | 25 |
| apportion
business income under the same subsection of | 26 |
| Section 304 of this Act as the
taxpayer making the | 27 |
| election. No election allowed by this subparagraph | 28 |
| shall
be made under a claim
filed under subsection (d) | 29 |
| of Section 909 more than 30 days after the
effective | 30 |
| date of this amendatory Act of 1996.
| 31 |
| (F) Finance Leases. For purposes of this | 32 |
| subsection, a finance lease
shall be treated as a loan | 33 |
| or other extension of credit, rather than as a
lease,
| 34 |
| regardless of how the transaction is characterized for |
|
|
|
09300SB2210ham001 |
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|
| 1 |
| any other purpose,
including the purposes of any | 2 |
| regulatory agency to which the lessor is subject.
A | 3 |
| finance lease is any transaction in the form of a lease | 4 |
| in which the lessee
is treated as the owner of the | 5 |
| leased asset entitled to any deduction for
| 6 |
| depreciation allowed under Section 167 of the Internal | 7 |
| Revenue Code.
| 8 |
| (9) Fiscal year. The term "fiscal year" means an | 9 |
| accounting period of
12 months ending on the last day of | 10 |
| any month other than December.
| 11 |
| (10) Includes and including. The terms "includes" and | 12 |
| "including" when
used in a definition contained in this Act | 13 |
| shall not be deemed to exclude
other things otherwise | 14 |
| within the meaning of the term defined.
| 15 |
| (11) Internal Revenue Code. The term "Internal Revenue | 16 |
| Code" means the
United States Internal Revenue Code of 1954 | 17 |
| or any successor law or laws
relating to federal income | 18 |
| taxes in effect for the taxable year.
| 19 |
| (12) Mathematical error. The term "mathematical error" | 20 |
| includes the
following types of errors, omissions, or | 21 |
| defects in a return filed by a
taxpayer which prevents | 22 |
| acceptance of the return as filed for processing:
| 23 |
| (A) arithmetic errors or incorrect computations on | 24 |
| the return or
supporting schedules;
| 25 |
| (B) entries on the wrong lines;
| 26 |
| (C) omission of required supporting forms or | 27 |
| schedules or the omission
of the information in whole | 28 |
| or in part called for thereon; and
| 29 |
| (D) an attempt to claim, exclude, deduct, or | 30 |
| improperly report, in a
manner
directly contrary to the | 31 |
| provisions of the Act and regulations thereunder
any | 32 |
| item of income, exemption, deduction, or credit.
| 33 |
| (13) Nonbusiness income. The term "nonbusiness income" | 34 |
| means all income
other than business income or |
|
|
|
09300SB2210ham001 |
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|
| 1 |
| compensation.
| 2 |
| (14) Nonresident. The term "nonresident" means a | 3 |
| person who is not a
resident.
| 4 |
| (15) Paid, incurred and accrued. The terms "paid", | 5 |
| "incurred" and
"accrued"
shall be construed according to | 6 |
| the method of accounting upon the basis
of which the | 7 |
| person's base income is computed under this Act.
| 8 |
| (16) Partnership and partner. The term "partnership" | 9 |
| includes a syndicate,
group, pool, joint venture or other | 10 |
| unincorporated organization, through
or by means of which | 11 |
| any business, financial operation, or venture is carried
| 12 |
| on, and which is not, within the meaning of this Act, a | 13 |
| trust or estate
or a corporation; and the term "partner" | 14 |
| includes a member in such syndicate,
group, pool, joint | 15 |
| venture or organization.
| 16 |
| The term "partnership" includes any entity, including | 17 |
| a limited
liability company formed under the Illinois
| 18 |
| Limited Liability Company Act, classified as a partnership | 19 |
| for federal income tax purposes.
| 20 |
| The term "partnership" does not include a syndicate, | 21 |
| group, pool,
joint venture, or other unincorporated | 22 |
| organization established for the
sole purpose of playing | 23 |
| the Illinois State Lottery.
| 24 |
| (17) Part-year resident. The term "part-year resident" | 25 |
| means an individual
who became a resident during the | 26 |
| taxable year or ceased to be a resident
during the taxable | 27 |
| year. Under Section 1501(a)(20)(A)(i) residence
commences | 28 |
| with presence in this State for other than a temporary or | 29 |
| transitory
purpose and ceases with absence from this State | 30 |
| for other than a temporary or
transitory purpose. Under | 31 |
| Section 1501(a)(20)(A)(ii) residence commences
with the | 32 |
| establishment of domicile in this State and ceases with the
| 33 |
| establishment of domicile in another State.
| 34 |
| (18) Person. The term "person" shall be construed to |
|
|
|
09300SB2210ham001 |
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|
| 1 |
| mean and include
an individual, a trust, estate, | 2 |
| partnership, association, firm, company,
corporation, | 3 |
| limited liability company, or fiduciary. For purposes of | 4 |
| Section
1301 and 1302 of this Act, a "person" means (i) an | 5 |
| individual, (ii) a
corporation, (iii) an officer, agent, or | 6 |
| employee of a
corporation, (iv) a member, agent or employee | 7 |
| of a partnership, or (v)
a member,
manager, employee, | 8 |
| officer, director, or agent of a limited liability company
| 9 |
| who in such capacity commits an offense specified in | 10 |
| Section 1301 and 1302.
| 11 |
| (18A) Records. The term "records" includes all data | 12 |
| maintained by the
taxpayer, whether on paper, microfilm, | 13 |
| microfiche, or any type of
machine-sensible data | 14 |
| compilation.
| 15 |
| (19) Regulations. The term "regulations" includes | 16 |
| rules promulgated and
forms prescribed by the Department.
| 17 |
| (20) Resident. The term "resident" means:
| 18 |
| (A) an individual (i) who is
in this State for | 19 |
| other than a temporary or transitory purpose during the
| 20 |
| taxable year; or (ii) who is domiciled in this State | 21 |
| but is absent from
the State for a temporary or | 22 |
| transitory purpose during the taxable year;
| 23 |
| (B) The estate of a decedent who at his or her | 24 |
| death was domiciled in
this
State;
| 25 |
| (C) A trust created by a will of a decedent who at | 26 |
| his death was
domiciled
in this State; and
| 27 |
| (D) An irrevocable trust, the grantor of which was | 28 |
| domiciled in this
State
at the time such trust became | 29 |
| irrevocable. For purpose of this subparagraph,
a trust | 30 |
| shall be considered irrevocable to the extent that the | 31 |
| grantor is
not treated as the owner thereof under | 32 |
| Sections 671 through 678 of the Internal
Revenue Code.
| 33 |
| (21) Sales. The term "sales" means all gross receipts | 34 |
| of the taxpayer
not allocated under Sections 301, 302 and |
|
|
|
09300SB2210ham001 |
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|
| 1 |
| 303.
| 2 |
| (22) State. The term "state" when applied to a | 3 |
| jurisdiction other than
this State means any state of the | 4 |
| United States, the District of Columbia,
the Commonwealth | 5 |
| of Puerto Rico, any Territory or Possession of the United
| 6 |
| States, and any foreign country, or any political | 7 |
| subdivision of any of the
foregoing. For purposes of the | 8 |
| foreign tax credit under Section 601, the
term "state" | 9 |
| means any state of the United States, the District of | 10 |
| Columbia,
the Commonwealth of Puerto Rico, and any | 11 |
| territory or possession of the
United States, or any | 12 |
| political subdivision of any of the foregoing,
effective | 13 |
| for tax years ending on or after December 31, 1989.
| 14 |
| (23) Taxable year. The term "taxable year" means the | 15 |
| calendar year, or
the fiscal year ending during such | 16 |
| calendar year, upon the basis of which
the base income is | 17 |
| computed under this Act. "Taxable year" means, in the
case | 18 |
| of a return made for a fractional part of a year under the | 19 |
| provisions
of this Act, the period for which such return is | 20 |
| made.
| 21 |
| (24) Taxpayer. The term "taxpayer" means any person | 22 |
| subject to the tax
imposed by this Act.
| 23 |
| (25) International banking facility. The term | 24 |
| international banking
facility shall have the same meaning | 25 |
| as is set forth in the Illinois Banking
Act or as is set | 26 |
| forth in the laws of the United States or regulations of
| 27 |
| the Board of Governors of the Federal Reserve System.
| 28 |
| (26) Income Tax Return Preparer.
| 29 |
| (A) The term "income tax return preparer"
means any | 30 |
| person who prepares for compensation, or who employs | 31 |
| one or more
persons to prepare for compensation, any | 32 |
| return of tax imposed by this Act
or any claim for | 33 |
| refund of tax imposed by this Act. The preparation of a
| 34 |
| substantial portion of a return or claim for refund |
|
|
|
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|
| 1 |
| shall be treated as
the preparation of that return or | 2 |
| claim for refund.
| 3 |
| (B) A person is not an income tax return preparer | 4 |
| if all he or she does
is
| 5 |
| (i) furnish typing, reproducing, or other | 6 |
| mechanical assistance;
| 7 |
| (ii) prepare returns or claims for refunds for | 8 |
| the employer by whom he
or she is regularly and | 9 |
| continuously employed;
| 10 |
| (iii) prepare as a fiduciary returns or claims | 11 |
| for refunds for any
person; or
| 12 |
| (iv) prepare claims for refunds for a taxpayer | 13 |
| in response to any
notice
of deficiency issued to | 14 |
| that taxpayer or in response to any waiver of
| 15 |
| restriction after the commencement of an audit of | 16 |
| that taxpayer or of another
taxpayer if a | 17 |
| determination in the audit of the other taxpayer | 18 |
| directly or
indirectly affects the tax liability | 19 |
| of the taxpayer whose claims he or she is
| 20 |
| preparing.
| 21 |
| (27) Unitary business group. The term "unitary | 22 |
| business group" means
a group of persons related through | 23 |
| common ownership whose business activities
are integrated | 24 |
| with, dependent upon and contribute to each other. The | 25 |
| group
will not include those members who, in taxable years | 26 |
| ending on or after December 31, 2004, are foreign persons | 27 |
| and whose business activity outside the United
States is | 28 |
| 80% or more of any such member's total business activity; | 29 |
| for
purposes of this paragraph and clause (a)(3)(B)(ii) of | 30 |
| Section 304,
business
activity within the United States | 31 |
| shall be measured by means of the factors
ordinarily | 32 |
| applicable under subsections (a), (b), (c), (d), or (h)
of | 33 |
| Section
304 except that, in the case of members ordinarily | 34 |
| required to apportion
business income by means of the 3 |
|
|
|
09300SB2210ham001 |
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|
| 1 |
| factor formula of property, payroll and sales
specified in | 2 |
| subsection (a) of Section 304, including the
formula as | 3 |
| weighted in subsection (h) of Section 304, such members | 4 |
| shall
not use the sales factor in the computation and the | 5 |
| results of the property
and payroll factor computations of | 6 |
| subsection (a) of Section 304 shall be
divided by 2 (by one | 7 |
| if either
the property or payroll factor has a denominator | 8 |
| of zero). The computation
required by the preceding | 9 |
| sentence shall, in each case, involve the division of
the | 10 |
| member's property, payroll, or revenue miles in the United | 11 |
| States,
insurance premiums on property or risk in the | 12 |
| United States, or financial
organization business income | 13 |
| from sources within the United States, as the
case may be, | 14 |
| by the respective worldwide figures for such items. Common
| 15 |
| ownership in the case of corporations is the direct or | 16 |
| indirect control or
ownership of more than 50% of the | 17 |
| outstanding voting stock of the persons
carrying on unitary | 18 |
| business activity. Unitary business activity can
| 19 |
| ordinarily be illustrated where the activities of the | 20 |
| members are: (1) in the
same general line (such as | 21 |
| manufacturing, wholesaling, retailing of tangible
personal | 22 |
| property, insurance, transportation or finance); or (2) | 23 |
| are steps in a
vertically structured enterprise or process | 24 |
| (such as the steps involved in the
production of natural | 25 |
| resources, which might include exploration, mining,
| 26 |
| refining, and marketing); and, in either instance, the | 27 |
| members are functionally
integrated through the exercise | 28 |
| of strong centralized management (where, for
example, | 29 |
| authority over such matters as purchasing, financing, tax | 30 |
| compliance,
product line, personnel, marketing and capital | 31 |
| investment is not left to each
member). For taxable years | 32 |
| ending before December 31, 2004, a
In no event, however, | 33 |
| will any
unitary business group will not include members
| 34 |
| which are ordinarily required to apportion business income |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| under different
subsections of Section 304 except that for | 2 |
| tax years ending on or after
December 31, 1987 and before | 3 |
| December 31, 2004 this prohibition shall not apply to a | 4 |
| unitary business group
composed of one or more taxpayers | 5 |
| all of which apportion business income
pursuant to | 6 |
| subsection (b) of Section 304, or all of which apportion | 7 |
| business
income pursuant to subsection (d) of Section 304, | 8 |
| and a holding company of such
single-factor taxpayers (see | 9 |
| definition of "financial organization" for rule
regarding | 10 |
| holding companies of financial organizations). If a | 11 |
| unitary business
group would, but for the preceding | 12 |
| sentence, include members that are
ordinarily required to | 13 |
| apportion business income under different subsections of
| 14 |
| Section 304, then for each subsection of Section 304 for | 15 |
| which there are two or
more members, there shall be a | 16 |
| separate unitary business group composed of such
members. | 17 |
| For purposes of the preceding two sentences, a member is | 18 |
| "ordinarily
required to apportion business income" under a | 19 |
| particular subsection of Section
304 if it would be | 20 |
| required to use the apportionment method prescribed by such
| 21 |
| subsection except for the fact that it derives business | 22 |
| income solely from
Illinois. Pursuant to rules adopted by | 23 |
| the Department, the members of a unitary business group (as | 24 |
| defined in this Section) may jointly elect to include in | 25 |
| the group for any taxable year ending on or after December | 26 |
| 31, 2004, a passive income affiliate, as defined in | 27 |
| paragraph (29) of this subsection. Where the election is | 28 |
| made to include a passive income affiliate in the unitary | 29 |
| business group, for purposes of computing the affiliate's | 30 |
| base income under Section 203 of this Act, the affiliate's | 31 |
| federal taxable income shall be deemed to consist solely of | 32 |
| its passive income, as defined in subparagraph (B) of | 33 |
| paragraph (29) of this subection, net of related expenses. | 34 |
| As used in this paragraph, for taxable years ending on or |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| after December 31, 2004, the phrase "United States" means | 2 |
| the 50 states, the District of Columbia, any territory or | 3 |
| possession of the United States, and any area over which | 4 |
| the United States has asserted jurisdiction or claimed | 5 |
| exclusive rights with respect to the exploration for or | 6 |
| exploitation of natural resources. This definition | 7 |
| includes, but is not limited to, Puerto Rico and the outer | 8 |
| continental shelf and any artificial islands and | 9 |
| structures therein. | 10 |
| If the unitary business group members' accounting | 11 |
| periods differ,
the common parent's accounting period or, | 12 |
| if there is no common parent, the
accounting period of the | 13 |
| member that is expected to have, on a recurring basis,
the | 14 |
| greatest Illinois income tax liability must be used to | 15 |
| determine whether to
use the apportionment method provided | 16 |
| in subsection (a) or subsection (h) of
Section 304. The
| 17 |
| prohibition against membership in a unitary business group | 18 |
| for taxpayers
ordinarily required to apportion income | 19 |
| under different subsections of Section
304 does not apply | 20 |
| to taxpayers required to apportion income under subsection
| 21 |
| (a) and subsection (h) of Section
304. The provisions of | 22 |
| this amendatory Act of 1998 apply to tax
years ending on or | 23 |
| after December 31, 1998.
| 24 |
| (28) Subchapter S corporation. The term "Subchapter S | 25 |
| corporation"
means a corporation for which there is in | 26 |
| effect an election under Section
1362 of the Internal | 27 |
| Revenue Code, or for which there is a federal election
to | 28 |
| opt out of the provisions of the Subchapter S Revision Act | 29 |
| of 1982 and
have applied instead the prior federal | 30 |
| Subchapter S rules as in effect on July
1, 1982.
| 31 |
| (29) Passive income affiliate. | 32 |
| (A) In general. The term "passive income | 33 |
| affiliate" means any person if (i) the person would be | 34 |
| a member of a unitary business group under paragraph |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| (27) of this subsection except for the fact that the | 2 |
| person is a foreign person and 80% or more of the | 3 |
| person's business activity is outside the United | 4 |
| States (as determined under paragraph (27)) and (ii) at | 5 |
| least 50% of the person's total gross income (as | 6 |
| defined in this Section) for the taxable year consists | 7 |
| of "passive income" as set forth in subparagraph (B) of | 8 |
| this paragraph. | 9 |
| (B) Passive income. For purpose of subparagraph | 10 |
| (A), "passive income" includes the following items | 11 |
| (whether or not business income): | 12 |
| (i) dividends, interest, annuities, and | 13 |
| royalties (except that "royalties" does not | 14 |
| include "active business computer software | 15 |
| royalties", as defined in Section 543(d) of the | 16 |
| Internal Revenue Code); | 17 |
| (ii) gains from the sale or exchange of stock | 18 |
| or securities; | 19 |
| (iii) gains from futures transactions in any | 20 |
| commodity on or subject to the rules of a board of | 21 |
| trade or commodity exchange (except that, pursuant | 22 |
| to rules adopted by the Department, gains by a | 23 |
| producer, processor, merchant, or handler of the | 24 |
| commodity that arise out of bona fide hedging | 25 |
| transactions reasonably necessary to the conduct | 26 |
| of its business in the manner in which the business | 27 |
| is customarily and usually conducted by others | 28 |
| shall not be included); | 29 |
| (iv) amounts included in income under part I of | 30 |
| subchapter J of the Internal Revenue Code and gains | 31 |
| from the sale of other disposition of any interest | 32 |
| in an estate or trust; | 33 |
| (v) amounts received as compensation (however | 34 |
| designated and from whomever received) for the use |
|
|
|
09300SB2210ham001 |
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|
| 1 |
| of, or the right to use, property of the person in | 2 |
| any case where the party entitled to the use of the | 3 |
| property (whether the right is obtained directly | 4 |
| from the person or by means of a sublease or other | 5 |
| arrangement) would be a member of the person's | 6 |
| unitary business group under paragraph (27) of | 7 |
| this subsection but for the fact that the person's | 8 |
| business activity outside the United States is 80% | 9 |
| or more of total business activity as determined | 10 |
| under paragraph (27); | 11 |
| (vi) rents, unless constituting 50% or more of | 12 |
| the gross income. The term "rents" as used in this | 13 |
| subparagraph means compensation, however | 14 |
| designated, for the use of, or right to use, | 15 |
| property but does not include amounts described in | 16 |
| subparagraph (v); and | 17 |
| (vii) pursuant to rules adopted by the | 18 |
| Department, amounts similar to the items set forth | 19 |
| in (i) through (vi) above. | 20 |
| (C) Gross income and special rules. | 21 |
| (i) Gross income. The term "gross income" | 22 |
| means the gross income of the person computed under | 23 |
| Section 61 of the Internal Revenue Code (without | 24 |
| regard to the provisions of subchapter N of the | 25 |
| Internal Revenue Code) in any case as if such | 26 |
| person were a domestic corporation, partnership, | 27 |
| or trust, as applicable. Gross income determined | 28 |
| with respect to transactions described in | 29 |
| subparagraphs (ii) and (iii) of subparagraph (B) | 30 |
| of this paragraph shall include only the excess of | 31 |
| gains over losses from such transactions. | 32 |
| (ii) 80/20 dividends. Dividends received by a | 33 |
| person, directly or indirectly, with respect to | 34 |
| the stock of a corporation that is not a passive |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| income affiliate (as defined in this paragraph) | 2 |
| and that would be a member of that person's unitary | 3 |
| business group under paragraph (27) of this | 4 |
| subsection but for the fact that the corporation or | 5 |
| person conducts 80% or more of their business | 6 |
| activities outside the United States (as | 7 |
| determined under paragraph (27) of this | 8 |
| subsection) shall not be considered passive income | 9 |
| under subparagraph (B) of this paragraph. | 10 |
| (iii) Exclusion of banks. A person that is | 11 |
| organized and doing business under the banking or | 12 |
| credit laws of a state or foreign country shall not | 13 |
| be considered a passive income affiliate if it is | 14 |
| established to the satisfaction of the Director | 15 |
| that the person is not formed or availed of for the | 16 |
| purpose of avoiding federal income tax or Illinois | 17 |
| income tax. If the Director is satisfied that the | 18 |
| person is not so formed or availed of, the Director | 19 |
| shall issue to the person annually or at other | 20 |
| periodic intervals a certification that the person | 21 |
| is not a passive income affiliate.
| 22 |
| (30) Foreign person. The term "foreign person" means | 23 |
| any person who is a nonresident alien individual and any | 24 |
| nonindividual other than a person created or organized in | 25 |
| the United States or under the law of the United States or | 26 |
| of any State.
| 27 |
| (b) Other definitions.
| 28 |
| (1) Words denoting number, gender, and so forth,
when | 29 |
| used in this Act, where not otherwise distinctly expressed | 30 |
| or manifestly
incompatible with the intent thereof:
| 31 |
| (A) Words importing the singular include and apply | 32 |
| to several persons,
parties or things;
| 33 |
| (B) Words importing the plural include the |
|
|
|
09300SB2210ham001 |
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LRB093 15836 RCE 51238 a |
|
| 1 |
| singular; and
| 2 |
| (C) Words importing the masculine gender include | 3 |
| the feminine as well.
| 4 |
| (2) "Company" or "association" as including successors | 5 |
| and assigns. The
word "company" or "association", when used | 6 |
| in reference to a corporation,
shall be deemed to embrace | 7 |
| the words "successors and assigns of such company
or | 8 |
| association", and in like manner as if these last-named | 9 |
| words, or words
of similar import, were expressed.
| 10 |
| (3) Other terms. Any term used in any Section of this | 11 |
| Act with respect
to the application of, or in connection | 12 |
| with, the provisions of any other
Section of this Act shall | 13 |
| have the same meaning as in such other Section.
| 14 |
| (Source: P.A. 91-535, eff. 1-1-00; 91-913, eff.
1-1-01; 92-846, | 15 |
| eff. 8-23-02.)".
|
|