Sen. John G. Mulroe

Filed: 3/28/2017

 

 


 

 


 
10000SB0472sam001LRB100 05155 HLH 23971 a

1
AMENDMENT TO SENATE BILL 472

2    AMENDMENT NO. ______. Amend Senate Bill 472 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The New Markets Development Program Act is
5amended by changing Section 10 as follows:
 
6    (20 ILCS 663/10)
7    Sec. 10. Credit established. A person or entity that makes
8a qualified equity investment earns a vested right to tax
9credits as follows:
10        (1) on each credit allowance date of the qualified
11    equity investment, the purchaser of the qualified equity
12    investment, or subsequent holder of the qualified equity
13    investment, is entitled to a tax credit during the taxable
14    year including that credit allowance date;
15        (2) the tax credit amount shall be equal to the
16    applicable percentage for such credit allowance date

 

 

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1    multiplied by the purchase price paid to the issuer of the
2    qualified equity investment; and
3        (3) the amount of the tax credit claimed shall not
4    exceed the amount of the State tax liability of the holder,
5    or the person or entity to whom the credit is allocated for
6    use pursuant to Section 15, for the tax year for which the
7    tax credit is claimed.
8    A company doing insurance business in this State claiming a
9tax credit against insurance premium taxes payable pursuant to
10Section 409 of the Illinois Insurance Code is not required to
11pay any additional retaliatory tax imposed pursuant to Section
12444 or 444.1 of the Illinois Insurance Code related to that
13claim for a tax credit.
14    No tax credit shall be awarded under this Act for a
15qualified equity investment made on or after January 1, 2017.
16(Source: P.A. 95-1024, eff. 12-31-08.)
 
17    Section 10. The Illinois Income Tax Act is amended by
18changing Sections 201, 203, 204, 208, 209, 210, 211, 213, 214,
19216, 217, 218, 221, 222, and 223 as follows:
 
20    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
21    Sec. 201. Tax Imposed.
22    (a) In general. A tax measured by net income is hereby
23imposed on every individual, corporation, trust and estate for
24each taxable year ending after July 31, 1969 on the privilege

 

 

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1of earning or receiving income in or as a resident of this
2State. Such tax shall be in addition to all other occupation or
3privilege taxes imposed by this State or by any municipal
4corporation or political subdivision thereof.
5    (b) Rates. The tax imposed by subsection (a) of this
6Section shall be determined as follows, except as adjusted by
7subsection (d-1):
8        (1) In the case of an individual, trust or estate, for
9    taxable years ending prior to July 1, 1989, an amount equal
10    to 2 1/2% of the taxpayer's net income for the taxable
11    year.
12        (2) In the case of an individual, trust or estate, for
13    taxable years beginning prior to July 1, 1989 and ending
14    after June 30, 1989, an amount equal to the sum of (i) 2
15    1/2% of the taxpayer's net income for the period prior to
16    July 1, 1989, as calculated under Section 202.3, and (ii)
17    3% of the taxpayer's net income for the period after June
18    30, 1989, as calculated under Section 202.3.
19        (3) In the case of an individual, trust or estate, for
20    taxable years beginning after June 30, 1989, and ending
21    prior to January 1, 2011, an amount equal to 3% of the
22    taxpayer's net income for the taxable year.
23        (4) In the case of an individual, trust, or estate, for
24    taxable years beginning prior to January 1, 2011, and
25    ending after December 31, 2010, an amount equal to the sum
26    of (i) 3% of the taxpayer's net income for the period prior

 

 

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1    to January 1, 2011, as calculated under Section 202.5, and
2    (ii) 5% of the taxpayer's net income for the period after
3    December 31, 2010, as calculated under Section 202.5.
4        (5) In the case of an individual, trust, or estate, for
5    taxable years beginning on or after January 1, 2011, and
6    ending prior to January 1, 2015, an amount equal to 5% of
7    the taxpayer's net income for the taxable year.
8        (5.1) In the case of an individual, trust, or estate,
9    for taxable years beginning prior to January 1, 2015, and
10    ending after December 31, 2014, an amount equal to the sum
11    of (i) 5% of the taxpayer's net income for the period prior
12    to January 1, 2015, as calculated under Section 202.5, and
13    (ii) 3.75% of the taxpayer's net income for the period
14    after December 31, 2014, as calculated under Section 202.5.
15        (5.2) In the case of an individual, trust, or estate,
16    for taxable years beginning on or after January 1, 2015,
17    and ending prior to January 1, 2025, an amount equal to
18    3.75% of the taxpayer's net income for the taxable year.
19        (5.3) In the case of an individual, trust, or estate,
20    for taxable years beginning prior to January 1, 2025, and
21    ending after December 31, 2024, an amount equal to the sum
22    of (i) 3.75% of the taxpayer's net income for the period
23    prior to January 1, 2025, as calculated under Section
24    202.5, and (ii) 3.25% of the taxpayer's net income for the
25    period after December 31, 2024, as calculated under Section
26    202.5.

 

 

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1        (5.4) In the case of an individual, trust, or estate,
2    for taxable years beginning on or after January 1, 2025, an
3    amount equal to 3.25% of the taxpayer's net income for the
4    taxable year.
5        (6) In the case of a corporation, for taxable years
6    ending prior to July 1, 1989, an amount equal to 4% of the
7    taxpayer's net income for the taxable year.
8        (7) In the case of a corporation, for taxable years
9    beginning prior to July 1, 1989 and ending after June 30,
10    1989, an amount equal to the sum of (i) 4% of the
11    taxpayer's net income for the period prior to July 1, 1989,
12    as calculated under Section 202.3, and (ii) 4.8% of the
13    taxpayer's net income for the period after June 30, 1989,
14    as calculated under Section 202.3.
15        (8) In the case of a corporation, for taxable years
16    beginning after June 30, 1989, and ending prior to January
17    1, 2011, an amount equal to 4.8% of the taxpayer's net
18    income for the taxable year.
19        (9) In the case of a corporation, for taxable years
20    beginning prior to January 1, 2011, and ending after
21    December 31, 2010, an amount equal to the sum of (i) 4.8%
22    of the taxpayer's net income for the period prior to
23    January 1, 2011, as calculated under Section 202.5, and
24    (ii) 7% of the taxpayer's net income for the period after
25    December 31, 2010, as calculated under Section 202.5.
26        (10) In the case of a corporation, for taxable years

 

 

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1    beginning on or after January 1, 2011, and ending prior to
2    January 1, 2015, an amount equal to 7% of the taxpayer's
3    net income for the taxable year.
4        (11) In the case of a corporation, for taxable years
5    beginning prior to January 1, 2015, and ending after
6    December 31, 2014, an amount equal to the sum of (i) 7% of
7    the taxpayer's net income for the period prior to January
8    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
9    of the taxpayer's net income for the period after December
10    31, 2014, as calculated under Section 202.5.
11        (12) In the case of a corporation, for taxable years
12    beginning on or after January 1, 2015, and ending prior to
13    January 1, 2025, an amount equal to 5.25% of the taxpayer's
14    net income for the taxable year.
15        (13) In the case of a corporation, for taxable years
16    beginning prior to January 1, 2025, and ending after
17    December 31, 2024, an amount equal to the sum of (i) 5.25%
18    of the taxpayer's net income for the period prior to
19    January 1, 2025, as calculated under Section 202.5, and
20    (ii) 4.8% of the taxpayer's net income for the period after
21    December 31, 2024, as calculated under Section 202.5.
22        (14) In the case of a corporation, for taxable years
23    beginning on or after January 1, 2025, an amount equal to
24    4.8% of the taxpayer's net income for the taxable year.
25    The rates under this subsection (b) are subject to the
26provisions of Section 201.5.

 

 

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1    (c) Personal Property Tax Replacement Income Tax.
2Beginning on July 1, 1979 and thereafter, in addition to such
3income tax, there is also hereby imposed the Personal Property
4Tax Replacement Income Tax measured by net income on every
5corporation (including Subchapter S corporations), partnership
6and trust, for each taxable year ending after June 30, 1979.
7Such taxes are imposed on the privilege of earning or receiving
8income in or as a resident of this State. The Personal Property
9Tax Replacement Income Tax shall be in addition to the income
10tax imposed by subsections (a) and (b) of this Section and in
11addition to all other occupation or privilege taxes imposed by
12this State or by any municipal corporation or political
13subdivision thereof.
14    (d) Additional Personal Property Tax Replacement Income
15Tax Rates. The personal property tax replacement income tax
16imposed by this subsection and subsection (c) of this Section
17in the case of a corporation, other than a Subchapter S
18corporation and except as adjusted by subsection (d-1), shall
19be an additional amount equal to 2.85% of such taxpayer's net
20income for the taxable year, except that beginning on January
211, 1981, and thereafter, the rate of 2.85% specified in this
22subsection shall be reduced to 2.5%, and in the case of a
23partnership, trust or a Subchapter S corporation shall be an
24additional amount equal to 1.5% of such taxpayer's net income
25for the taxable year.
26    (d-1) Rate reduction for certain foreign insurers. In the

 

 

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1case of a foreign insurer, as defined by Section 35A-5 of the
2Illinois Insurance Code, whose state or country of domicile
3imposes on insurers domiciled in Illinois a retaliatory tax
4(excluding any insurer whose premiums from reinsurance assumed
5are 50% or more of its total insurance premiums as determined
6under paragraph (2) of subsection (b) of Section 304, except
7that for purposes of this determination premiums from
8reinsurance do not include premiums from inter-affiliate
9reinsurance arrangements), beginning with taxable years ending
10on or after December 31, 1999, the sum of the rates of tax
11imposed by subsections (b) and (d) shall be reduced (but not
12increased) to the rate at which the total amount of tax imposed
13under this Act, net of all credits allowed under this Act,
14shall equal (i) the total amount of tax that would be imposed
15on the foreign insurer's net income allocable to Illinois for
16the taxable year by such foreign insurer's state or country of
17domicile if that net income were subject to all income taxes
18and taxes measured by net income imposed by such foreign
19insurer's state or country of domicile, net of all credits
20allowed or (ii) a rate of zero if no such tax is imposed on such
21income by the foreign insurer's state of domicile. For the
22purposes of this subsection (d-1), an inter-affiliate includes
23a mutual insurer under common management.
24        (1) For the purposes of subsection (d-1), in no event
25    shall the sum of the rates of tax imposed by subsections
26    (b) and (d) be reduced below the rate at which the sum of:

 

 

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1            (A) the total amount of tax imposed on such foreign
2        insurer under this Act for a taxable year, net of all
3        credits allowed under this Act, plus
4            (B) the privilege tax imposed by Section 409 of the
5        Illinois Insurance Code, the fire insurance company
6        tax imposed by Section 12 of the Fire Investigation
7        Act, and the fire department taxes imposed under
8        Section 11-10-1 of the Illinois Municipal Code,
9    equals 1.25% for taxable years ending prior to December 31,
10    2003, or 1.75% for taxable years ending on or after
11    December 31, 2003, of the net taxable premiums written for
12    the taxable year, as described by subsection (1) of Section
13    409 of the Illinois Insurance Code. This paragraph will in
14    no event increase the rates imposed under subsections (b)
15    and (d).
16        (2) Any reduction in the rates of tax imposed by this
17    subsection shall be applied first against the rates imposed
18    by subsection (b) and only after the tax imposed by
19    subsection (a) net of all credits allowed under this
20    Section other than the credit allowed under subsection (i)
21    has been reduced to zero, against the rates imposed by
22    subsection (d).
23    This subsection (d-1) is exempt from the provisions of
24Section 250.
25    (e) Investment credit. A taxpayer shall be allowed a credit
26against the Personal Property Tax Replacement Income Tax for

 

 

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1investment in qualified property.
2        (1) A taxpayer shall be allowed a credit equal to .5%
3    of the basis of qualified property placed in service during
4    the taxable year, provided such property is placed in
5    service on or after July 1, 1984. There shall be allowed an
6    additional credit equal to .5% of the basis of qualified
7    property placed in service during the taxable year,
8    provided such property is placed in service on or after
9    July 1, 1986, and the taxpayer's base employment within
10    Illinois has increased by 1% or more over the preceding
11    year as determined by the taxpayer's employment records
12    filed with the Illinois Department of Employment Security.
13    Taxpayers who are new to Illinois shall be deemed to have
14    met the 1% growth in base employment for the first year in
15    which they file employment records with the Illinois
16    Department of Employment Security. The provisions added to
17    this Section by Public Act 85-1200 (and restored by Public
18    Act 87-895) shall be construed as declaratory of existing
19    law and not as a new enactment. If, in any year, the
20    increase in base employment within Illinois over the
21    preceding year is less than 1%, the additional credit shall
22    be limited to that percentage times a fraction, the
23    numerator of which is .5% and the denominator of which is
24    1%, but shall not exceed .5%. The investment credit shall
25    not be allowed to the extent that it would reduce a
26    taxpayer's liability in any tax year below zero, nor may

 

 

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1    any credit for qualified property be allowed for any year
2    other than the year in which the property was placed in
3    service in Illinois. For tax years ending on or after
4    December 31, 1987, and on or before December 31, 1988, the
5    credit shall be allowed for the tax year in which the
6    property is placed in service, or, if the amount of the
7    credit exceeds the tax liability for that year, whether it
8    exceeds the original liability or the liability as later
9    amended, such excess may be carried forward and applied to
10    the tax liability of the 5 taxable years following the
11    excess credit years if the taxpayer (i) makes investments
12    which cause the creation of a minimum of 2,000 full-time
13    equivalent jobs in Illinois, (ii) is located in an
14    enterprise zone established pursuant to the Illinois
15    Enterprise Zone Act and (iii) is certified by the
16    Department of Commerce and Community Affairs (now
17    Department of Commerce and Economic Opportunity) as
18    complying with the requirements specified in clause (i) and
19    (ii) by July 1, 1986. The Department of Commerce and
20    Community Affairs (now Department of Commerce and Economic
21    Opportunity) shall notify the Department of Revenue of all
22    such certifications immediately. For tax years ending
23    after December 31, 1988, the credit shall be allowed for
24    the tax year in which the property is placed in service,
25    or, if the amount of the credit exceeds the tax liability
26    for that year, whether it exceeds the original liability or

 

 

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1    the liability as later amended, such excess may be carried
2    forward and applied to the tax liability of the 5 taxable
3    years following the excess credit years. The credit shall
4    be applied to the earliest year for which there is a
5    liability. If there is credit from more than one tax year
6    that is available to offset a liability, earlier credit
7    shall be applied first.
8        (2) The term "qualified property" means property
9    which:
10            (A) is tangible, whether new or used, including
11        buildings and structural components of buildings and
12        signs that are real property, but not including land or
13        improvements to real property that are not a structural
14        component of a building such as landscaping, sewer
15        lines, local access roads, fencing, parking lots, and
16        other appurtenances;
17            (B) is depreciable pursuant to Section 167 of the
18        Internal Revenue Code, except that "3-year property"
19        as defined in Section 168(c)(2)(A) of that Code is not
20        eligible for the credit provided by this subsection
21        (e);
22            (C) is acquired by purchase as defined in Section
23        179(d) of the Internal Revenue Code;
24            (D) is used in Illinois by a taxpayer who is
25        primarily engaged in manufacturing, or in mining coal
26        or fluorite, or in retailing, or was placed in service

 

 

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1        on or after July 1, 2006 in a River Edge Redevelopment
2        Zone established pursuant to the River Edge
3        Redevelopment Zone Act; and
4            (E) has not previously been used in Illinois in
5        such a manner and by such a person as would qualify for
6        the credit provided by this subsection (e) or
7        subsection (f).
8        (3) For purposes of this subsection (e),
9    "manufacturing" means the material staging and production
10    of tangible personal property by procedures commonly
11    regarded as manufacturing, processing, fabrication, or
12    assembling which changes some existing material into new
13    shapes, new qualities, or new combinations. For purposes of
14    this subsection (e) the term "mining" shall have the same
15    meaning as the term "mining" in Section 613(c) of the
16    Internal Revenue Code. For purposes of this subsection (e),
17    the term "retailing" means the sale of tangible personal
18    property for use or consumption and not for resale, or
19    services rendered in conjunction with the sale of tangible
20    personal property for use or consumption and not for
21    resale. For purposes of this subsection (e), "tangible
22    personal property" has the same meaning as when that term
23    is used in the Retailers' Occupation Tax Act, and, for
24    taxable years ending after December 31, 2008, does not
25    include the generation, transmission, or distribution of
26    electricity.

 

 

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1        (4) The basis of qualified property shall be the basis
2    used to compute the depreciation deduction for federal
3    income tax purposes.
4        (5) If the basis of the property for federal income tax
5    depreciation purposes is increased after it has been placed
6    in service in Illinois by the taxpayer, the amount of such
7    increase shall be deemed property placed in service on the
8    date of such increase in basis.
9        (6) The term "placed in service" shall have the same
10    meaning as under Section 46 of the Internal Revenue Code.
11        (7) If during any taxable year, any property ceases to
12    be qualified property in the hands of the taxpayer within
13    48 months after being placed in service, or the situs of
14    any qualified property is moved outside Illinois within 48
15    months after being placed in service, the Personal Property
16    Tax Replacement Income Tax for such taxable year shall be
17    increased. Such increase shall be determined by (i)
18    recomputing the investment credit which would have been
19    allowed for the year in which credit for such property was
20    originally allowed by eliminating such property from such
21    computation and, (ii) subtracting such recomputed credit
22    from the amount of credit previously allowed. For the
23    purposes of this paragraph (7), a reduction of the basis of
24    qualified property resulting from a redetermination of the
25    purchase price shall be deemed a disposition of qualified
26    property to the extent of such reduction.

 

 

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1        (8) Unless the investment credit is extended by law,
2    the basis of qualified property shall not include costs
3    incurred after December 31, 2018, except for costs incurred
4    pursuant to a binding contract entered into on or before
5    December 31, 2018.
6        (9) Each taxable year ending before December 31, 2000,
7    a partnership may elect to pass through to its partners the
8    credits to which the partnership is entitled under this
9    subsection (e) for the taxable year. A partner may use the
10    credit allocated to him or her under this paragraph only
11    against the tax imposed in subsections (c) and (d) of this
12    Section. If the partnership makes that election, those
13    credits shall be allocated among the partners in the
14    partnership in accordance with the rules set forth in
15    Section 704(b) of the Internal Revenue Code, and the rules
16    promulgated under that Section, and the allocated amount of
17    the credits shall be allowed to the partners for that
18    taxable year. The partnership shall make this election on
19    its Personal Property Tax Replacement Income Tax return for
20    that taxable year. The election to pass through the credits
21    shall be irrevocable.
22        For taxable years ending on or after December 31, 2000,
23    a partner that qualifies its partnership for a subtraction
24    under subparagraph (I) of paragraph (2) of subsection (d)
25    of Section 203 or a shareholder that qualifies a Subchapter
26    S corporation for a subtraction under subparagraph (S) of

 

 

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1    paragraph (2) of subsection (b) of Section 203 shall be
2    allowed a credit under this subsection (e) equal to its
3    share of the credit earned under this subsection (e) during
4    the taxable year by the partnership or Subchapter S
5    corporation, determined in accordance with the
6    determination of income and distributive share of income
7    under Sections 702 and 704 and Subchapter S of the Internal
8    Revenue Code. This paragraph is exempt from the provisions
9    of Section 250.
10    (f) Investment credit; Enterprise Zone; River Edge
11Redevelopment Zone.
12        (1) For taxable years ending prior to December 31,
13    2017, a A taxpayer shall be allowed a credit against the
14    tax imposed by subsections (a) and (b) of this Section for
15    investment in qualified property which is placed in service
16    in an Enterprise Zone created pursuant to the Illinois
17    Enterprise Zone Act or, for property placed in service on
18    or after July 1, 2006, a River Edge Redevelopment Zone
19    established pursuant to the River Edge Redevelopment Zone
20    Act. For partners, shareholders of Subchapter S
21    corporations, and owners of limited liability companies,
22    if the liability company is treated as a partnership for
23    purposes of federal and State income taxation, there shall
24    be allowed a credit under this subsection (f) to be
25    determined in accordance with the determination of income
26    and distributive share of income under Sections 702 and 704

 

 

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1    and Subchapter S of the Internal Revenue Code. The credit
2    shall be .5% of the basis for such property. The credit
3    shall be available only in the taxable year in which the
4    property is placed in service in the Enterprise Zone or
5    River Edge Redevelopment Zone and shall not be allowed to
6    the extent that it would reduce a taxpayer's liability for
7    the tax imposed by subsections (a) and (b) of this Section
8    to below zero. For tax years ending on or after December
9    31, 1985, the credit shall be allowed for the tax year in
10    which the property is placed in service, or, if the amount
11    of the credit exceeds the tax liability for that year,
12    whether it exceeds the original liability or the liability
13    as later amended, such excess may be carried forward and
14    applied to the tax liability of the 5 taxable years
15    following the excess credit year. The credit shall be
16    applied to the earliest year for which there is a
17    liability. If there is credit from more than one tax year
18    that is available to offset a liability, the credit
19    accruing first in time shall be applied first.
20        (2) The term qualified property means property which:
21            (A) is tangible, whether new or used, including
22        buildings and structural components of buildings;
23            (B) is depreciable pursuant to Section 167 of the
24        Internal Revenue Code, except that "3-year property"
25        as defined in Section 168(c)(2)(A) of that Code is not
26        eligible for the credit provided by this subsection

 

 

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1        (f);
2            (C) is acquired by purchase as defined in Section
3        179(d) of the Internal Revenue Code;
4            (D) is used in the Enterprise Zone or River Edge
5        Redevelopment Zone by the taxpayer; and
6            (E) has not been previously used in Illinois in
7        such a manner and by such a person as would qualify for
8        the credit provided by this subsection (f) or
9        subsection (e).
10        (3) The basis of qualified property shall be the basis
11    used to compute the depreciation deduction for federal
12    income tax purposes.
13        (4) If the basis of the property for federal income tax
14    depreciation purposes is increased after it has been placed
15    in service in the Enterprise Zone or River Edge
16    Redevelopment Zone by the taxpayer, the amount of such
17    increase shall be deemed property placed in service on the
18    date of such increase in basis.
19        (5) The term "placed in service" shall have the same
20    meaning as under Section 46 of the Internal Revenue Code.
21        (6) If during any taxable year, any property ceases to
22    be qualified property in the hands of the taxpayer within
23    48 months after being placed in service, or the situs of
24    any qualified property is moved outside the Enterprise Zone
25    or River Edge Redevelopment Zone within 48 months after
26    being placed in service, the tax imposed under subsections

 

 

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1    (a) and (b) of this Section for such taxable year shall be
2    increased. Such increase shall be determined by (i)
3    recomputing the investment credit which would have been
4    allowed for the year in which credit for such property was
5    originally allowed by eliminating such property from such
6    computation, and (ii) subtracting such recomputed credit
7    from the amount of credit previously allowed. For the
8    purposes of this paragraph (6), a reduction of the basis of
9    qualified property resulting from a redetermination of the
10    purchase price shall be deemed a disposition of qualified
11    property to the extent of such reduction.
12        (7) There shall be allowed an additional credit equal
13    to 0.5% of the basis of qualified property placed in
14    service during the taxable year in a River Edge
15    Redevelopment Zone, provided such property is placed in
16    service on or after July 1, 2006, and the taxpayer's base
17    employment within Illinois has increased by 1% or more over
18    the preceding year as determined by the taxpayer's
19    employment records filed with the Illinois Department of
20    Employment Security. Taxpayers who are new to Illinois
21    shall be deemed to have met the 1% growth in base
22    employment for the first year in which they file employment
23    records with the Illinois Department of Employment
24    Security. If, in any year, the increase in base employment
25    within Illinois over the preceding year is less than 1%,
26    the additional credit shall be limited to that percentage

 

 

10000SB0472sam001- 20 -LRB100 05155 HLH 23971 a

1    times a fraction, the numerator of which is 0.5% and the
2    denominator of which is 1%, but shall not exceed 0.5%.
3    (g) (Blank).
4    (h) Investment credit; High Impact Business.
5        (1) Subject to subsections (b) and (b-5) of Section 5.5
6    of the Illinois Enterprise Zone Act, for taxable years
7    ending prior to December 31, 2017 a taxpayer shall be
8    allowed a credit against the tax imposed by subsections (a)
9    and (b) of this Section for investment in qualified
10    property which is placed in service by a Department of
11    Commerce and Economic Opportunity designated High Impact
12    Business. The credit shall be .5% of the basis for such
13    property. The credit shall not be available (i) until the
14    minimum investments in qualified property set forth in
15    subdivision (a)(3)(A) of Section 5.5 of the Illinois
16    Enterprise Zone Act have been satisfied or (ii) until the
17    time authorized in subsection (b-5) of the Illinois
18    Enterprise Zone Act for entities designated as High Impact
19    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
20    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
21    Act, and shall not be allowed to the extent that it would
22    reduce a taxpayer's liability for the tax imposed by
23    subsections (a) and (b) of this Section to below zero. The
24    credit applicable to such investments shall be taken in the
25    taxable year in which such investments have been completed.
26    The credit for additional investments beyond the minimum

 

 

10000SB0472sam001- 21 -LRB100 05155 HLH 23971 a

1    investment by a designated high impact business authorized
2    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
3    Enterprise Zone Act shall be available only in the taxable
4    year in which the property is placed in service and shall
5    not be allowed to the extent that it would reduce a
6    taxpayer's liability for the tax imposed by subsections (a)
7    and (b) of this Section to below zero. For tax years ending
8    on or after December 31, 1987, the credit shall be allowed
9    for the tax year in which the property is placed in
10    service, or, if the amount of the credit exceeds the tax
11    liability for that year, whether it exceeds the original
12    liability or the liability as later amended, such excess
13    may be carried forward and applied to the tax liability of
14    the 5 taxable years following the excess credit year. The
15    credit shall be applied to the earliest year for which
16    there is a liability. If there is credit from more than one
17    tax year that is available to offset a liability, the
18    credit accruing first in time shall be applied first.
19        Changes made in this subdivision (h)(1) by Public Act
20    88-670 restore changes made by Public Act 85-1182 and
21    reflect existing law.
22        (2) The term qualified property means property which:
23            (A) is tangible, whether new or used, including
24        buildings and structural components of buildings;
25            (B) is depreciable pursuant to Section 167 of the
26        Internal Revenue Code, except that "3-year property"

 

 

10000SB0472sam001- 22 -LRB100 05155 HLH 23971 a

1        as defined in Section 168(c)(2)(A) of that Code is not
2        eligible for the credit provided by this subsection
3        (h);
4            (C) is acquired by purchase as defined in Section
5        179(d) of the Internal Revenue Code; and
6            (D) is not eligible for the Enterprise Zone
7        Investment Credit provided by subsection (f) of this
8        Section.
9        (3) The basis of qualified property shall be the basis
10    used to compute the depreciation deduction for federal
11    income tax purposes.
12        (4) If the basis of the property for federal income tax
13    depreciation purposes is increased after it has been placed
14    in service in a federally designated Foreign Trade Zone or
15    Sub-Zone located in Illinois by the taxpayer, the amount of
16    such increase shall be deemed property placed in service on
17    the date of such increase in basis.
18        (5) The term "placed in service" shall have the same
19    meaning as under Section 46 of the Internal Revenue Code.
20        (6) If during any taxable year ending on or before
21    December 31, 1996, any property ceases to be qualified
22    property in the hands of the taxpayer within 48 months
23    after being placed in service, or the situs of any
24    qualified property is moved outside Illinois within 48
25    months after being placed in service, the tax imposed under
26    subsections (a) and (b) of this Section for such taxable

 

 

10000SB0472sam001- 23 -LRB100 05155 HLH 23971 a

1    year shall be increased. Such increase shall be determined
2    by (i) recomputing the investment credit which would have
3    been allowed for the year in which credit for such property
4    was originally allowed by eliminating such property from
5    such computation, and (ii) subtracting such recomputed
6    credit from the amount of credit previously allowed. For
7    the purposes of this paragraph (6), a reduction of the
8    basis of qualified property resulting from a
9    redetermination of the purchase price shall be deemed a
10    disposition of qualified property to the extent of such
11    reduction.
12        (7) Beginning with tax years ending after December 31,
13    1996, if a taxpayer qualifies for the credit under this
14    subsection (h) and thereby is granted a tax abatement and
15    the taxpayer relocates its entire facility in violation of
16    the explicit terms and length of the contract under Section
17    18-183 of the Property Tax Code, the tax imposed under
18    subsections (a) and (b) of this Section shall be increased
19    for the taxable year in which the taxpayer relocated its
20    facility by an amount equal to the amount of credit
21    received by the taxpayer under this subsection (h).
22    (i) Credit for Personal Property Tax Replacement Income
23Tax. For tax years ending prior to December 31, 2003, a credit
24shall be allowed against the tax imposed by subsections (a) and
25(b) of this Section for the tax imposed by subsections (c) and
26(d) of this Section. This credit shall be computed by

 

 

10000SB0472sam001- 24 -LRB100 05155 HLH 23971 a

1multiplying the tax imposed by subsections (c) and (d) of this
2Section by a fraction, the numerator of which is base income
3allocable to Illinois and the denominator of which is Illinois
4base income, and further multiplying the product by the tax
5rate imposed by subsections (a) and (b) of this Section.
6    Any credit earned on or after December 31, 1986 under this
7subsection which is unused in the year the credit is computed
8because it exceeds the tax liability imposed by subsections (a)
9and (b) for that year (whether it exceeds the original
10liability or the liability as later amended) may be carried
11forward and applied to the tax liability imposed by subsections
12(a) and (b) of the 5 taxable years following the excess credit
13year, provided that no credit may be carried forward to any
14year ending on or after December 31, 2003. This credit shall be
15applied first to the earliest year for which there is a
16liability. If there is a credit under this subsection from more
17than one tax year that is available to offset a liability the
18earliest credit arising under this subsection shall be applied
19first.
20    If, during any taxable year ending on or after December 31,
211986, the tax imposed by subsections (c) and (d) of this
22Section for which a taxpayer has claimed a credit under this
23subsection (i) is reduced, the amount of credit for such tax
24shall also be reduced. Such reduction shall be determined by
25recomputing the credit to take into account the reduced tax
26imposed by subsections (c) and (d). If any portion of the

 

 

10000SB0472sam001- 25 -LRB100 05155 HLH 23971 a

1reduced amount of credit has been carried to a different
2taxable year, an amended return shall be filed for such taxable
3year to reduce the amount of credit claimed.
4    (j) Training expense credit. Beginning with tax years
5ending on or after December 31, 1986 and prior to December 31,
62003, a taxpayer shall be allowed a credit against the tax
7imposed by subsections (a) and (b) under this Section for all
8amounts paid or accrued, on behalf of all persons employed by
9the taxpayer in Illinois or Illinois residents employed outside
10of Illinois by a taxpayer, for educational or vocational
11training in semi-technical or technical fields or semi-skilled
12or skilled fields, which were deducted from gross income in the
13computation of taxable income. The credit against the tax
14imposed by subsections (a) and (b) shall be 1.6% of such
15training expenses. For partners, shareholders of subchapter S
16corporations, and owners of limited liability companies, if the
17liability company is treated as a partnership for purposes of
18federal and State income taxation, there shall be allowed a
19credit under this subsection (j) to be determined in accordance
20with the determination of income and distributive share of
21income under Sections 702 and 704 and subchapter S of the
22Internal Revenue Code.
23    Any credit allowed under this subsection which is unused in
24the year the credit is earned may be carried forward to each of
25the 5 taxable years following the year for which the credit is
26first computed until it is used. This credit shall be applied

 

 

10000SB0472sam001- 26 -LRB100 05155 HLH 23971 a

1first to the earliest year for which there is a liability. If
2there is a credit under this subsection from more than one tax
3year that is available to offset a liability the earliest
4credit arising under this subsection shall be applied first. No
5carryforward credit may be claimed in any tax year ending on or
6after December 31, 2003.
7    (k) Research and development credit. For tax years ending
8after July 1, 1990 and prior to December 31, 2003, and
9beginning again for tax years ending on or after December 31,
102004, and ending prior to January 1, 2016, a taxpayer shall be
11allowed a credit against the tax imposed by subsections (a) and
12(b) of this Section for increasing research activities in this
13State. The credit allowed against the tax imposed by
14subsections (a) and (b) shall be equal to 6 1/2% of the
15qualifying expenditures for increasing research activities in
16this State. For partners, shareholders of subchapter S
17corporations, and owners of limited liability companies, if the
18liability company is treated as a partnership for purposes of
19federal and State income taxation, there shall be allowed a
20credit under this subsection to be determined in accordance
21with the determination of income and distributive share of
22income under Sections 702 and 704 and subchapter S of the
23Internal Revenue Code.
24    For purposes of this subsection, "qualifying expenditures"
25means the qualifying expenditures as defined for the federal
26credit for increasing research activities which would be

 

 

10000SB0472sam001- 27 -LRB100 05155 HLH 23971 a

1allowable under Section 41 of the Internal Revenue Code and
2which are conducted in this State, "qualifying expenditures for
3increasing research activities in this State" means the excess
4of qualifying expenditures for the taxable year in which
5incurred over qualifying expenditures for the base period,
6"qualifying expenditures for the base period" means the average
7of the qualifying expenditures for each year in the base
8period, and "base period" means the 3 taxable years immediately
9preceding the taxable year for which the determination is being
10made.
11    Any credit in excess of the tax liability for the taxable
12year may be carried forward. A taxpayer may elect to have the
13unused credit shown on its final completed return carried over
14as a credit against the tax liability for the following 5
15taxable years or until it has been fully used, whichever occurs
16first; provided that no credit earned in a tax year ending
17prior to December 31, 2003 may be carried forward to any year
18ending on or after December 31, 2003.
19    If an unused credit is carried forward to a given year from
202 or more earlier years, that credit arising in the earliest
21year will be applied first against the tax liability for the
22given year. If a tax liability for the given year still
23remains, the credit from the next earliest year will then be
24applied, and so on, until all credits have been used or no tax
25liability for the given year remains. Any remaining unused
26credit or credits then will be carried forward to the next

 

 

10000SB0472sam001- 28 -LRB100 05155 HLH 23971 a

1following year in which a tax liability is incurred, except
2that no credit can be carried forward to a year which is more
3than 5 years after the year in which the expense for which the
4credit is given was incurred.
5    No inference shall be drawn from this amendatory Act of the
691st General Assembly in construing this Section for taxable
7years beginning before January 1, 1999.
8    (l) Environmental Remediation Tax Credit.
9        (i) For tax years ending after December 31, 1997 and on
10    or before December 31, 2001, a taxpayer shall be allowed a
11    credit against the tax imposed by subsections (a) and (b)
12    of this Section for certain amounts paid for unreimbursed
13    eligible remediation costs, as specified in this
14    subsection. For purposes of this Section, "unreimbursed
15    eligible remediation costs" means costs approved by the
16    Illinois Environmental Protection Agency ("Agency") under
17    Section 58.14 of the Environmental Protection Act that were
18    paid in performing environmental remediation at a site for
19    which a No Further Remediation Letter was issued by the
20    Agency and recorded under Section 58.10 of the
21    Environmental Protection Act. The credit must be claimed
22    for the taxable year in which Agency approval of the
23    eligible remediation costs is granted. The credit is not
24    available to any taxpayer if the taxpayer or any related
25    party caused or contributed to, in any material respect, a
26    release of regulated substances on, in, or under the site

 

 

10000SB0472sam001- 29 -LRB100 05155 HLH 23971 a

1    that was identified and addressed by the remedial action
2    pursuant to the Site Remediation Program of the
3    Environmental Protection Act. After the Pollution Control
4    Board rules are adopted pursuant to the Illinois
5    Administrative Procedure Act for the administration and
6    enforcement of Section 58.9 of the Environmental
7    Protection Act, determinations as to credit availability
8    for purposes of this Section shall be made consistent with
9    those rules. For purposes of this Section, "taxpayer"
10    includes a person whose tax attributes the taxpayer has
11    succeeded to under Section 381 of the Internal Revenue Code
12    and "related party" includes the persons disallowed a
13    deduction for losses by paragraphs (b), (c), and (f)(1) of
14    Section 267 of the Internal Revenue Code by virtue of being
15    a related taxpayer, as well as any of its partners. The
16    credit allowed against the tax imposed by subsections (a)
17    and (b) shall be equal to 25% of the unreimbursed eligible
18    remediation costs in excess of $100,000 per site, except
19    that the $100,000 threshold shall not apply to any site
20    contained in an enterprise zone as determined by the
21    Department of Commerce and Community Affairs (now
22    Department of Commerce and Economic Opportunity). The
23    total credit allowed shall not exceed $40,000 per year with
24    a maximum total of $150,000 per site. For partners and
25    shareholders of subchapter S corporations, there shall be
26    allowed a credit under this subsection to be determined in

 

 

10000SB0472sam001- 30 -LRB100 05155 HLH 23971 a

1    accordance with the determination of income and
2    distributive share of income under Sections 702 and 704 and
3    subchapter S of the Internal Revenue Code.
4        (ii) A credit allowed under this subsection that is
5    unused in the year the credit is earned may be carried
6    forward to each of the 5 taxable years following the year
7    for which the credit is first earned until it is used. The
8    term "unused credit" does not include any amounts of
9    unreimbursed eligible remediation costs in excess of the
10    maximum credit per site authorized under paragraph (i).
11    This credit shall be applied first to the earliest year for
12    which there is a liability. If there is a credit under this
13    subsection from more than one tax year that is available to
14    offset a liability, the earliest credit arising under this
15    subsection shall be applied first. A credit allowed under
16    this subsection may be sold to a buyer as part of a sale of
17    all or part of the remediation site for which the credit
18    was granted. The purchaser of a remediation site and the
19    tax credit shall succeed to the unused credit and remaining
20    carry-forward period of the seller. To perfect the
21    transfer, the assignor shall record the transfer in the
22    chain of title for the site and provide written notice to
23    the Director of the Illinois Department of Revenue of the
24    assignor's intent to sell the remediation site and the
25    amount of the tax credit to be transferred as a portion of
26    the sale. In no event may a credit be transferred to any

 

 

10000SB0472sam001- 31 -LRB100 05155 HLH 23971 a

1    taxpayer if the taxpayer or a related party would not be
2    eligible under the provisions of subsection (i).
3        (iii) For purposes of this Section, the term "site"
4    shall have the same meaning as under Section 58.2 of the
5    Environmental Protection Act.
6    (m) Education expense credit. Beginning with tax years
7ending after December 31, 1999, a taxpayer who is the custodian
8of one or more qualifying pupils shall be allowed a credit
9against the tax imposed by subsections (a) and (b) of this
10Section for qualified education expenses incurred on behalf of
11the qualifying pupils. The credit shall be equal to 25% of
12qualified education expenses, but in no event may the total
13credit under this subsection claimed by a family that is the
14custodian of qualifying pupils exceed $500. In no event shall a
15credit under this subsection reduce the taxpayer's liability
16under this Act to less than zero. Notwithstanding any other
17provision of law, for taxable years beginning on or after
18January 1, 2018, no taxpayer may claim a credit under this
19subsection (m) if the taxpayer's adjusted gross income for the
20taxable year exceeds (i) $500,000, in the case of spouses
21filing a joint federal tax return or (ii) $250,000, in the case
22of all other taxpayers. This subsection is exempt from the
23provisions of Section 250 of this Act.
24    For purposes of this subsection:
25    "Qualifying pupils" means individuals who (i) are
26residents of the State of Illinois, (ii) are under the age of

 

 

10000SB0472sam001- 32 -LRB100 05155 HLH 23971 a

121 at the close of the school year for which a credit is
2sought, and (iii) during the school year for which a credit is
3sought were full-time pupils enrolled in a kindergarten through
4twelfth grade education program at any school, as defined in
5this subsection.
6    "Qualified education expense" means the amount incurred on
7behalf of a qualifying pupil in excess of $250 for tuition,
8book fees, and lab fees at the school in which the pupil is
9enrolled during the regular school year.
10    "School" means any public or nonpublic elementary or
11secondary school in Illinois that is in compliance with Title
12VI of the Civil Rights Act of 1964 and attendance at which
13satisfies the requirements of Section 26-1 of the School Code,
14except that nothing shall be construed to require a child to
15attend any particular public or nonpublic school to qualify for
16the credit under this Section.
17    "Custodian" means, with respect to qualifying pupils, an
18Illinois resident who is a parent, the parents, a legal
19guardian, or the legal guardians of the qualifying pupils.
20    (n) River Edge Redevelopment Zone site remediation tax
21credit.
22        (i) For tax years ending on or after December 31, 2006
23    and ending prior to December 31, 2017, a taxpayer shall be
24    allowed a credit against the tax imposed by subsections (a)
25    and (b) of this Section for certain amounts paid for
26    unreimbursed eligible remediation costs, as specified in

 

 

10000SB0472sam001- 33 -LRB100 05155 HLH 23971 a

1    this subsection. For purposes of this Section,
2    "unreimbursed eligible remediation costs" means costs
3    approved by the Illinois Environmental Protection Agency
4    ("Agency") under Section 58.14a of the Environmental
5    Protection Act that were paid in performing environmental
6    remediation at a site within a River Edge Redevelopment
7    Zone for which a No Further Remediation Letter was issued
8    by the Agency and recorded under Section 58.10 of the
9    Environmental Protection Act. The credit must be claimed
10    for the taxable year in which Agency approval of the
11    eligible remediation costs is granted. The credit is not
12    available to any taxpayer if the taxpayer or any related
13    party caused or contributed to, in any material respect, a
14    release of regulated substances on, in, or under the site
15    that was identified and addressed by the remedial action
16    pursuant to the Site Remediation Program of the
17    Environmental Protection Act. Determinations as to credit
18    availability for purposes of this Section shall be made
19    consistent with rules adopted by the Pollution Control
20    Board pursuant to the Illinois Administrative Procedure
21    Act for the administration and enforcement of Section 58.9
22    of the Environmental Protection Act. For purposes of this
23    Section, "taxpayer" includes a person whose tax attributes
24    the taxpayer has succeeded to under Section 381 of the
25    Internal Revenue Code and "related party" includes the
26    persons disallowed a deduction for losses by paragraphs

 

 

10000SB0472sam001- 34 -LRB100 05155 HLH 23971 a

1    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
2    Code by virtue of being a related taxpayer, as well as any
3    of its partners. The credit allowed against the tax imposed
4    by subsections (a) and (b) shall be equal to 25% of the
5    unreimbursed eligible remediation costs in excess of
6    $100,000 per site.
7        (ii) A credit allowed under this subsection that is
8    unused in the year the credit is earned may be carried
9    forward to each of the 5 taxable years following the year
10    for which the credit is first earned until it is used. This
11    credit shall be applied first to the earliest year for
12    which there is a liability. If there is a credit under this
13    subsection from more than one tax year that is available to
14    offset a liability, the earliest credit arising under this
15    subsection shall be applied first. A credit allowed under
16    this subsection may be sold to a buyer as part of a sale of
17    all or part of the remediation site for which the credit
18    was granted. The purchaser of a remediation site and the
19    tax credit shall succeed to the unused credit and remaining
20    carry-forward period of the seller. To perfect the
21    transfer, the assignor shall record the transfer in the
22    chain of title for the site and provide written notice to
23    the Director of the Illinois Department of Revenue of the
24    assignor's intent to sell the remediation site and the
25    amount of the tax credit to be transferred as a portion of
26    the sale. In no event may a credit be transferred to any

 

 

10000SB0472sam001- 35 -LRB100 05155 HLH 23971 a

1    taxpayer if the taxpayer or a related party would not be
2    eligible under the provisions of subsection (i).
3        (iii) For purposes of this Section, the term "site"
4    shall have the same meaning as under Section 58.2 of the
5    Environmental Protection Act.
6    (o) For each of taxable years during the Compassionate Use
7of Medical Cannabis Pilot Program, a surcharge is imposed on
8all taxpayers on income arising from the sale or exchange of
9capital assets, depreciable business property, real property
10used in the trade or business, and Section 197 intangibles of
11an organization registrant under the Compassionate Use of
12Medical Cannabis Pilot Program Act. The amount of the surcharge
13is equal to the amount of federal income tax liability for the
14taxable year attributable to those sales and exchanges. The
15surcharge imposed does not apply if:
16        (1) the medical cannabis cultivation center
17    registration, medical cannabis dispensary registration, or
18    the property of a registration is transferred as a result
19    of any of the following:
20            (A) bankruptcy, a receivership, or a debt
21        adjustment initiated by or against the initial
22        registration or the substantial owners of the initial
23        registration;
24            (B) cancellation, revocation, or termination of
25        any registration by the Illinois Department of Public
26        Health;

 

 

10000SB0472sam001- 36 -LRB100 05155 HLH 23971 a

1            (C) a determination by the Illinois Department of
2        Public Health that transfer of the registration is in
3        the best interests of Illinois qualifying patients as
4        defined by the Compassionate Use of Medical Cannabis
5        Pilot Program Act;
6            (D) the death of an owner of the equity interest in
7        a registrant;
8            (E) the acquisition of a controlling interest in
9        the stock or substantially all of the assets of a
10        publicly traded company;
11            (F) a transfer by a parent company to a wholly
12        owned subsidiary; or
13            (G) the transfer or sale to or by one person to
14        another person where both persons were initial owners
15        of the registration when the registration was issued;
16        or
17        (2) the cannabis cultivation center registration,
18    medical cannabis dispensary registration, or the
19    controlling interest in a registrant's property is
20    transferred in a transaction to lineal descendants in which
21    no gain or loss is recognized or as a result of a
22    transaction in accordance with Section 351 of the Internal
23    Revenue Code in which no gain or loss is recognized.
24(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
25eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
26eff. 7-16-14.)
 

 

 

10000SB0472sam001- 37 -LRB100 05155 HLH 23971 a

1    (35 ILCS 5/203)  (from Ch. 120, par. 2-203)
2    Sec. 203. Base income defined.
3    (a) Individuals.
4        (1) In general. In the case of an individual, base
5    income means an amount equal to the taxpayer's adjusted
6    gross income for the taxable year as modified by paragraph
7    (2).
8        (2) Modifications. The adjusted gross income referred
9    to in paragraph (1) shall be modified by adding thereto the
10    sum of the following amounts:
11            (A) An amount equal to all amounts paid or accrued
12        to the taxpayer as interest or dividends during the
13        taxable year to the extent excluded from gross income
14        in the computation of adjusted gross income, except
15        stock dividends of qualified public utilities
16        described in Section 305(e) of the Internal Revenue
17        Code;
18            (B) An amount equal to the amount of tax imposed by
19        this Act to the extent deducted from gross income in
20        the computation of adjusted gross income for the
21        taxable year;
22            (C) An amount equal to the amount received during
23        the taxable year as a recovery or refund of real
24        property taxes paid with respect to the taxpayer's
25        principal residence under the Revenue Act of 1939 and

 

 

10000SB0472sam001- 38 -LRB100 05155 HLH 23971 a

1        for which a deduction was previously taken under
2        subparagraph (L) of this paragraph (2) prior to July 1,
3        1991, the retrospective application date of Article 4
4        of Public Act 87-17. In the case of multi-unit or
5        multi-use structures and farm dwellings, the taxes on
6        the taxpayer's principal residence shall be that
7        portion of the total taxes for the entire property
8        which is attributable to such principal residence;
9            (D) An amount equal to the amount of the capital
10        gain deduction allowable under the Internal Revenue
11        Code, to the extent deducted from gross income in the
12        computation of adjusted gross income;
13            (D-5) An amount, to the extent not included in
14        adjusted gross income, equal to the amount of money
15        withdrawn by the taxpayer in the taxable year from a
16        medical care savings account and the interest earned on
17        the account in the taxable year of a withdrawal
18        pursuant to subsection (b) of Section 20 of the Medical
19        Care Savings Account Act or subsection (b) of Section
20        20 of the Medical Care Savings Account Act of 2000;
21            (D-10) For taxable years ending after December 31,
22        1997, an amount equal to any eligible remediation costs
23        that the individual deducted in computing adjusted
24        gross income and for which the individual claims a
25        credit under subsection (l) of Section 201;
26            (D-15) For taxable years 2001 and thereafter, an

 

 

10000SB0472sam001- 39 -LRB100 05155 HLH 23971 a

1        amount equal to the bonus depreciation deduction taken
2        on the taxpayer's federal income tax return for the
3        taxable year under subsection (k) of Section 168 of the
4        Internal Revenue Code;
5            (D-16) If the taxpayer sells, transfers, abandons,
6        or otherwise disposes of property for which the
7        taxpayer was required in any taxable year to make an
8        addition modification under subparagraph (D-15), then
9        an amount equal to the aggregate amount of the
10        deductions taken in all taxable years under
11        subparagraph (Z) with respect to that property.
12            If the taxpayer continues to own property through
13        the last day of the last tax year for which the
14        taxpayer may claim a depreciation deduction for
15        federal income tax purposes and for which the taxpayer
16        was allowed in any taxable year to make a subtraction
17        modification under subparagraph (Z), then an amount
18        equal to that subtraction modification.
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-17) An amount equal to the amount otherwise
23        allowed as a deduction in computing base income for
24        interest paid, accrued, or incurred, directly or
25        indirectly, (i) for taxable years ending on or after
26        December 31, 2004, to a foreign person who would be a

 

 

10000SB0472sam001- 40 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 41 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 42 -LRB100 05155 HLH 23971 a

1            evidence that the adjustments are unreasonable; or
2            if the taxpayer and the Director agree in writing
3            to the application or use of an alternative method
4            of apportionment under Section 304(f).
5                Nothing in this subsection shall preclude the
6            Director from making any other adjustment
7            otherwise allowed under Section 404 of this Act for
8            any tax year beginning after the effective date of
9            this amendment provided such adjustment is made
10            pursuant to regulation adopted by the Department
11            and such regulations provide methods and standards
12            by which the Department will utilize its authority
13            under Section 404 of this Act;
14            (D-18) An amount equal to the amount of intangible
15        expenses and costs otherwise allowed as a deduction in
16        computing base income, and that were paid, accrued, or
17        incurred, directly or indirectly, (i) for taxable
18        years ending on or after December 31, 2004, to a
19        foreign person who would be a member of the same
20        unitary business group but for the fact that the
21        foreign person's business activity outside the United
22        States is 80% or more of that person's total business
23        activity and (ii) for taxable years ending on or after
24        December 31, 2008, to a person who would be a member of
25        the same unitary business group but for the fact that
26        the person is prohibited under Section 1501(a)(27)

 

 

10000SB0472sam001- 43 -LRB100 05155 HLH 23971 a

1        from being included in the unitary business group
2        because he or she is ordinarily required to apportion
3        business income under different subsections of Section
4        304. The addition modification required by this
5        subparagraph shall be reduced to the extent that
6        dividends were included in base income of the unitary
7        group for the same taxable year and received by the
8        taxpayer or by a member of the taxpayer's unitary
9        business group (including amounts included in gross
10        income under Sections 951 through 964 of the Internal
11        Revenue Code and amounts included in gross income under
12        Section 78 of the Internal Revenue Code) with respect
13        to the stock of the same person to whom the intangible
14        expenses and costs were directly or indirectly paid,
15        incurred, or accrued. The preceding sentence does not
16        apply to the extent that the same dividends caused a
17        reduction to the addition modification required under
18        Section 203(a)(2)(D-17) of this Act. As used in this
19        subparagraph, the term "intangible expenses and costs"
20        includes (1) expenses, losses, and costs for, or
21        related to, the direct or indirect acquisition, use,
22        maintenance or management, ownership, sale, exchange,
23        or any other disposition of intangible property; (2)
24        losses incurred, directly or indirectly, from
25        factoring transactions or discounting transactions;
26        (3) royalty, patent, technical, and copyright fees;

 

 

10000SB0472sam001- 44 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 45 -LRB100 05155 HLH 23971 a

1                principal purpose the avoidance of Illinois
2                income tax, and is paid pursuant to a contract
3                or agreement that reflects arm's-length terms;
4                or
5                (iii) any item of intangible expense or cost
6            paid, accrued, or incurred, directly or
7            indirectly, from a transaction with a person if the
8            taxpayer establishes by clear and convincing
9            evidence, that the adjustments are unreasonable;
10            or if the taxpayer and the Director agree in
11            writing to the application or use of an alternative
12            method of apportionment under Section 304(f);
13                Nothing in this subsection shall preclude the
14            Director from making any other adjustment
15            otherwise allowed under Section 404 of this Act for
16            any tax year beginning after the effective date of
17            this amendment provided such adjustment is made
18            pursuant to regulation adopted by the Department
19            and such regulations provide methods and standards
20            by which the Department will utilize its authority
21            under Section 404 of this Act;
22            (D-19) For taxable years ending on or after
23        December 31, 2008, an amount equal to the amount of
24        insurance premium expenses and costs otherwise allowed
25        as a deduction in computing base income, and that were
26        paid, accrued, or incurred, directly or indirectly, to

 

 

10000SB0472sam001- 46 -LRB100 05155 HLH 23971 a

1        a person who would be a member of the same unitary
2        business group but for the fact that the person is
3        prohibited under Section 1501(a)(27) from being
4        included in the unitary business group because he or
5        she is ordinarily required to apportion business
6        income under different subsections of Section 304. The
7        addition modification required by this subparagraph
8        shall be reduced to the extent that dividends were
9        included in base income of the unitary group for the
10        same 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 under
13        Sections 951 through 964 of the Internal Revenue Code
14        and amounts included in gross income under Section 78
15        of the Internal Revenue Code) with respect to the stock
16        of the same person to whom the premiums and costs were
17        directly or indirectly paid, incurred, or accrued. The
18        preceding sentence does not apply to the extent that
19        the same dividends caused a reduction to the addition
20        modification required under Section 203(a)(2)(D-17) or
21        Section 203(a)(2)(D-18) of this Act.
22            (D-20) For taxable years beginning on or after
23        January 1, 2002 and ending on or before December 31,
24        2006, in the case of a distribution from a qualified
25        tuition program under Section 529 of the Internal
26        Revenue Code, other than (i) a distribution from a

 

 

10000SB0472sam001- 47 -LRB100 05155 HLH 23971 a

1        College Savings Pool created under Section 16.5 of the
2        State Treasurer Act or (ii) a distribution from the
3        Illinois Prepaid Tuition Trust Fund, an amount equal to
4        the amount excluded from gross income under Section
5        529(c)(3)(B). For taxable years beginning on or after
6        January 1, 2007, in the case of a distribution from a
7        qualified tuition program under Section 529 of the
8        Internal Revenue Code, other than (i) a distribution
9        from a College Savings Pool created under Section 16.5
10        of the State Treasurer Act, (ii) a distribution from
11        the Illinois Prepaid Tuition Trust Fund, or (iii) a
12        distribution from a qualified tuition program under
13        Section 529 of the Internal Revenue Code that (I)
14        adopts and determines that its offering materials
15        comply with the College Savings Plans Network's
16        disclosure principles and (II) has made reasonable
17        efforts to inform in-state residents of the existence
18        of in-state qualified tuition programs by informing
19        Illinois residents directly and, where applicable, to
20        inform financial intermediaries distributing the
21        program to inform in-state residents of the existence
22        of in-state qualified tuition programs at least
23        annually, an amount equal to the amount excluded from
24        gross income under Section 529(c)(3)(B).
25            For the purposes of this subparagraph (D-20), a
26        qualified tuition program has made reasonable efforts

 

 

10000SB0472sam001- 48 -LRB100 05155 HLH 23971 a

1        if it makes disclosures (which may use the term
2        "in-state program" or "in-state plan" and need not
3        specifically refer to Illinois or its qualified
4        programs by name) (i) directly to prospective
5        participants in its offering materials or makes a
6        public disclosure, such as a website posting; and (ii)
7        where applicable, to intermediaries selling the
8        out-of-state program in the same manner that the
9        out-of-state program distributes its offering
10        materials;
11            (D-21) For taxable years beginning on or after
12        January 1, 2007, in the case of transfer of moneys from
13        a qualified tuition program under Section 529 of the
14        Internal Revenue Code that is administered by the State
15        to an out-of-state program, an amount equal to the
16        amount of moneys previously deducted from base income
17        under subsection (a)(2)(Y) of this Section;
18            (D-22) For taxable years beginning on or after
19        January 1, 2009, in the case of a nonqualified
20        withdrawal or refund of moneys from a qualified tuition
21        program under Section 529 of the Internal Revenue Code
22        administered by the State that is not used for
23        qualified expenses at an eligible education
24        institution, an amount equal to the contribution
25        component of the nonqualified withdrawal or refund
26        that was previously deducted from base income under

 

 

10000SB0472sam001- 49 -LRB100 05155 HLH 23971 a

1        subsection (a)(2)(y) of this Section, provided that
2        the withdrawal or refund did not result from the
3        beneficiary's death or disability;
4            (D-23) An amount equal to the credit allowable to
5        the taxpayer under Section 218(a) of this Act,
6        determined without regard to Section 218(c) of this
7        Act;
8    and by deducting from the total so obtained the sum of the
9    following amounts:
10            (E) For taxable years ending before December 31,
11        2001, any amount included in such total in respect of
12        any compensation (including but not limited to any
13        compensation paid or accrued to a serviceman while a
14        prisoner of war or missing in action) paid to a
15        resident by reason of being on active duty in the Armed
16        Forces of the United States and in respect of any
17        compensation paid or accrued to a resident who as a
18        governmental employee was a prisoner of war or missing
19        in action, and in respect of any compensation paid to a
20        resident in 1971 or thereafter for annual training
21        performed pursuant to Sections 502 and 503, Title 32,
22        United States Code as a member of the Illinois National
23        Guard or, beginning with taxable years ending on or
24        after December 31, 2007, the National Guard of any
25        other state. For taxable years ending on or after
26        December 31, 2001, any amount included in such total in

 

 

10000SB0472sam001- 50 -LRB100 05155 HLH 23971 a

1        respect of any compensation (including but not limited
2        to any compensation paid or accrued to a serviceman
3        while a prisoner of war or missing in action) paid to a
4        resident by reason of being a member of any component
5        of the Armed Forces of the United States and in respect
6        of any compensation paid or accrued to a resident who
7        as a governmental employee was a prisoner of war or
8        missing in action, and in respect of any compensation
9        paid to a resident in 2001 or thereafter by reason of
10        being a member of the Illinois National Guard or,
11        beginning with taxable years ending on or after
12        December 31, 2007, the National Guard of any other
13        state. The provisions of this subparagraph (E) are
14        exempt from the provisions of Section 250;
15            (F) An amount equal to all amounts included in such
16        total pursuant to the provisions of Sections 402(a),
17        402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the
18        Internal Revenue Code, or included in such total as
19        distributions under the provisions of any retirement
20        or disability plan for employees of any governmental
21        agency or unit, or retirement payments to retired
22        partners, which payments are excluded in computing net
23        earnings from self employment by Section 1402 of the
24        Internal Revenue Code and regulations adopted pursuant
25        thereto;
26            (G) The valuation limitation amount;

 

 

10000SB0472sam001- 51 -LRB100 05155 HLH 23971 a

1            (H) An amount equal to the amount of any tax
2        imposed by this Act which was refunded to the taxpayer
3        and included in such total for the taxable year;
4            (I) An amount equal to all amounts included in such
5        total pursuant to the provisions of Section 111 of the
6        Internal Revenue Code as a recovery of items previously
7        deducted from adjusted gross income in the computation
8        of taxable income;
9            (J) For taxable years ending prior to December 31,
10        2017, an An amount equal to those dividends included in
11        such total which were paid by a corporation which
12        conducts business operations in a River Edge
13        Redevelopment Zone or zones created under the River
14        Edge Redevelopment Zone Act, and conducts
15        substantially all of its operations in a River Edge
16        Redevelopment Zone or zones. This subparagraph (J) is
17        exempt from the provisions of Section 250;
18            (K) For taxable years ending prior to December 31,
19        2017, an An amount equal to those dividends included in
20        such total that were paid by a corporation that
21        conducts business operations in a federally designated
22        Foreign Trade Zone or Sub-Zone and that is designated a
23        High Impact Business located in Illinois; provided
24        that dividends eligible for the deduction provided in
25        subparagraph (J) of paragraph (2) of this subsection
26        shall not be eligible for the deduction provided under

 

 

10000SB0472sam001- 52 -LRB100 05155 HLH 23971 a

1        this subparagraph (K);
2            (L) For taxable years ending after December 31,
3        1983, an amount equal to all social security benefits
4        and railroad retirement benefits included in such
5        total pursuant to Sections 72(r) and 86 of the Internal
6        Revenue Code;
7            (M) With the exception of any amounts subtracted
8        under subparagraph (N), an amount equal to the sum of
9        all amounts disallowed as deductions by (i) Sections
10        171(a) (2), and 265(2) of the Internal Revenue Code,
11        and all amounts of expenses allocable to interest and
12        disallowed as deductions by Section 265(1) of the
13        Internal Revenue Code; and (ii) for taxable years
14        ending on or after August 13, 1999, Sections 171(a)(2),
15        265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue
16        Code, plus, for taxable years ending on or after
17        December 31, 2011, Section 45G(e)(3) of the Internal
18        Revenue Code and, for taxable years ending on or after
19        December 31, 2008, any amount included in gross income
20        under Section 87 of the Internal Revenue Code; the
21        provisions of this subparagraph are exempt from the
22        provisions of Section 250;
23            (N) An amount equal to all amounts included in such
24        total which are exempt from taxation by this State
25        either by reason of its statutes or Constitution or by
26        reason of the Constitution, treaties or statutes of the

 

 

10000SB0472sam001- 53 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 54 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 55 -LRB100 05155 HLH 23971 a

1        amount paid for that health insurance or long-term care
2        insurance may be deducted under Section 213 of the
3        Internal Revenue Code, has not been deducted on the
4        federal income tax return of the taxpayer, and does not
5        exceed the taxable income attributable to that
6        taxpayer's income, self-employment income, or
7        Subchapter S corporation income; except that no
8        deduction shall be allowed under this item (V) if the
9        taxpayer is eligible to participate in any health
10        insurance or long-term care insurance plan of an
11        employer of the taxpayer or the taxpayer's spouse. The
12        amount of the health insurance and long-term care
13        insurance subtracted under this item (V) shall be
14        determined by multiplying total health insurance and
15        long-term care insurance premiums paid by the taxpayer
16        times a number that represents the fractional
17        percentage of eligible medical expenses under Section
18        213 of the Internal Revenue Code of 1986 not actually
19        deducted on the taxpayer's federal income tax return;
20            (W) For taxable years beginning on or after January
21        1, 1998, all amounts included in the taxpayer's federal
22        gross income in the taxable year from amounts converted
23        from a regular IRA to a Roth IRA. This paragraph is
24        exempt from the provisions of Section 250;
25            (X) For taxable year 1999 and thereafter, an amount
26        equal to the amount of any (i) distributions, to the

 

 

10000SB0472sam001- 56 -LRB100 05155 HLH 23971 a

1        extent includible in gross income for federal income
2        tax purposes, made to the taxpayer because of his or
3        her status as a victim of persecution for racial or
4        religious reasons by Nazi Germany or any other Axis
5        regime or as an heir of the victim and (ii) items of
6        income, to the extent includible in gross income for
7        federal income tax purposes, attributable to, derived
8        from or in any way related to assets stolen from,
9        hidden from, or otherwise lost to a victim of
10        persecution for racial or religious reasons by Nazi
11        Germany or any other Axis regime immediately prior to,
12        during, and immediately after World War II, including,
13        but not limited to, interest on the proceeds receivable
14        as insurance under policies issued to a victim of
15        persecution for racial or religious reasons by Nazi
16        Germany or any other Axis regime by European insurance
17        companies immediately prior to and during World War II;
18        provided, however, this subtraction from federal
19        adjusted gross income does not apply to assets acquired
20        with such assets or with the proceeds from the sale of
21        such assets; provided, further, this paragraph shall
22        only apply to a taxpayer who was the first recipient of
23        such assets after their recovery and who is a victim of
24        persecution for racial or religious reasons by Nazi
25        Germany or any other Axis regime or as an heir of the
26        victim. The amount of and the eligibility for any

 

 

10000SB0472sam001- 57 -LRB100 05155 HLH 23971 a

1        public assistance, benefit, or similar entitlement is
2        not affected by the inclusion of items (i) and (ii) of
3        this paragraph in gross income for federal income tax
4        purposes. This paragraph is exempt from the provisions
5        of Section 250;
6            (Y) For taxable years beginning on or after January
7        1, 2002 and ending on or before December 31, 2004,
8        moneys contributed in the taxable year to a College
9        Savings Pool account under Section 16.5 of the State
10        Treasurer Act, except that amounts excluded from gross
11        income under Section 529(c)(3)(C)(i) of the Internal
12        Revenue Code shall not be considered moneys
13        contributed under this subparagraph (Y). For taxable
14        years beginning on or after January 1, 2005, a maximum
15        of $10,000 contributed in the taxable year to (i) a
16        College Savings Pool account under Section 16.5 of the
17        State Treasurer Act or (ii) the Illinois Prepaid
18        Tuition Trust Fund, except that amounts excluded from
19        gross income under Section 529(c)(3)(C)(i) of the
20        Internal Revenue Code shall not be considered moneys
21        contributed under this subparagraph (Y). For purposes
22        of this subparagraph, contributions made by an
23        employer on behalf of an employee, or matching
24        contributions made by an employee, shall be treated as
25        made by the employee. This subparagraph (Y) is exempt
26        from the provisions of Section 250;

 

 

10000SB0472sam001- 58 -LRB100 05155 HLH 23971 a

1            (Z) For taxable years 2001 and thereafter, for the
2        taxable year in which the bonus depreciation deduction
3        is taken on the taxpayer's federal income tax return
4        under subsection (k) of Section 168 of the Internal
5        Revenue Code and for each applicable taxable year
6        thereafter, an amount equal to "x", where:
7                (1) "y" equals the amount of the depreciation
8            deduction taken for the taxable year on the
9            taxpayer's federal income tax return on property
10            for which the bonus depreciation deduction was
11            taken in any year under subsection (k) of Section
12            168 of the Internal Revenue Code, but not including
13            the bonus depreciation deduction;
14                (2) for taxable years ending on or before
15            December 31, 2005, "x" equals "y" multiplied by 30
16            and then divided by 70 (or "y" multiplied by
17            0.429); and
18                (3) for taxable years ending after December
19            31, 2005:
20                    (i) for property on which a bonus
21                depreciation deduction of 30% of the adjusted
22                basis was taken, "x" equals "y" multiplied by
23                30 and then divided by 70 (or "y" multiplied by
24                0.429); and
25                    (ii) for property on which a bonus
26                depreciation deduction of 50% of the adjusted

 

 

10000SB0472sam001- 59 -LRB100 05155 HLH 23971 a

1                basis was taken, "x" equals "y" multiplied by
2                1.0.
3            The aggregate amount deducted under this
4        subparagraph in all taxable years for any one piece of
5        property may not exceed the amount of the bonus
6        depreciation deduction taken on that property on the
7        taxpayer's federal income tax return under subsection
8        (k) of Section 168 of the Internal Revenue Code. This
9        subparagraph (Z) is exempt from the provisions of
10        Section 250;
11            (AA) If the taxpayer sells, transfers, abandons,
12        or otherwise disposes of property for which the
13        taxpayer was required in any taxable year to make an
14        addition modification under subparagraph (D-15), then
15        an amount equal to that addition modification.
16            If the taxpayer continues to own property through
17        the last day of the last tax year for which the
18        taxpayer may claim a depreciation deduction for
19        federal income tax purposes and for which the taxpayer
20        was required in any taxable year to make an addition
21        modification under subparagraph (D-15), then an amount
22        equal to that addition modification.
23            The taxpayer is allowed to take the deduction under
24        this subparagraph only once with respect to any one
25        piece of property.
26            This subparagraph (AA) is exempt from the

 

 

10000SB0472sam001- 60 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 61 -LRB100 05155 HLH 23971 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 and (ii) for taxable
4        years ending on or after December 31, 2008, to a person
5        who would be a member of the same unitary business
6        group but for the fact that the person is prohibited
7        under Section 1501(a)(27) from being included in the
8        unitary business group because he or she is ordinarily
9        required to apportion business income under different
10        subsections of Section 304, but not to exceed the
11        addition modification required to be made for the same
12        taxable year under Section 203(a)(2)(D-17) for
13        interest paid, accrued, or incurred, directly or
14        indirectly, to the same person. This subparagraph (DD)
15        is exempt from the provisions of Section 250;
16            (EE) An amount equal to the income from intangible
17        property taken into account for the taxable year (net
18        of the deductions allocable thereto) with respect to
19        transactions with (i) a foreign person who would be a
20        member of the taxpayer's unitary business group but for
21        the fact that the foreign person's business activity
22        outside the United States is 80% or more of that
23        person's total business activity and (ii) for taxable
24        years ending on or after December 31, 2008, to a person
25        who would be a member of the same unitary business
26        group but for the fact that the person is prohibited

 

 

10000SB0472sam001- 62 -LRB100 05155 HLH 23971 a

1        under Section 1501(a)(27) from being included in the
2        unitary business group because he or she is ordinarily
3        required to apportion business income under different
4        subsections of Section 304, but not to exceed the
5        addition modification required to be made for the same
6        taxable year under Section 203(a)(2)(D-18) for
7        intangible expenses and costs paid, accrued, or
8        incurred, directly or indirectly, to the same foreign
9        person. This subparagraph (EE) is exempt from the
10        provisions of Section 250;
11            (FF) An amount equal to any amount awarded to the
12        taxpayer during the taxable year by the Court of Claims
13        under subsection (c) of Section 8 of the Court of
14        Claims Act for time unjustly served in a State prison.
15        This subparagraph (FF) is exempt from the provisions of
16        Section 250; and
17            (GG) For taxable years ending on or after December
18        31, 2011, in the case of a taxpayer who was required to
19        add back any insurance premiums under Section
20        203(a)(2)(D-19), such taxpayer may elect to subtract
21        that part of a reimbursement received from the
22        insurance company equal to the amount of the expense or
23        loss (including expenses incurred by the insurance
24        company) that would have been taken into account as a
25        deduction for federal income tax purposes if the
26        expense or loss had been uninsured. If a taxpayer makes

 

 

10000SB0472sam001- 63 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 64 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 65 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 66 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 67 -LRB100 05155 HLH 23971 a

1        under Section 1501(a)(27) from being included in the
2        unitary business group because he or she is ordinarily
3        required to apportion business income under different
4        subsections of Section 304. The addition modification
5        required by this subparagraph shall be reduced to the
6        extent that dividends were included in base income of
7        the unitary group for the same taxable year and
8        received by the taxpayer or by a member of the
9        taxpayer's unitary business group (including amounts
10        included in gross income pursuant to Sections 951
11        through 964 of the Internal Revenue Code and amounts
12        included in gross income under Section 78 of the
13        Internal Revenue Code) with respect to the stock of the
14        same person to whom the interest was paid, accrued, or
15        incurred.
16            This paragraph shall not apply to the following:
17                (i) an item of interest paid, accrued, or
18            incurred, directly or indirectly, to a person who
19            is subject in a foreign country or state, other
20            than a state which requires mandatory unitary
21            reporting, to a tax on or measured by net income
22            with respect to such interest; or
23                (ii) an item of interest paid, accrued, or
24            incurred, directly or indirectly, to a person if
25            the taxpayer can establish, based on a
26            preponderance of the evidence, both of the

 

 

10000SB0472sam001- 68 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 69 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 70 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 71 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 72 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 73 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 74 -LRB100 05155 HLH 23971 a

1            (F) An amount equal to the amount of any tax
2        imposed by this Act which was refunded to the taxpayer
3        and included in such total for the taxable year;
4            (G) An amount equal to any amount included in such
5        total under Section 78 of the Internal Revenue Code;
6            (H) In the case of a regulated investment company,
7        an amount equal to the amount of exempt interest
8        dividends as defined in subsection (b) (5) of Section
9        852 of the Internal Revenue Code, paid to shareholders
10        for the taxable year;
11            (I) With the exception of any amounts subtracted
12        under subparagraph (J), an amount equal to the sum of
13        all amounts disallowed as deductions by (i) Sections
14        171(a) (2), and 265(a)(2) and amounts disallowed as
15        interest expense by Section 291(a)(3) of the Internal
16        Revenue Code, and all amounts of expenses allocable to
17        interest and disallowed as deductions by Section
18        265(a)(1) of the Internal Revenue Code; and (ii) for
19        taxable years ending on or after August 13, 1999,
20        Sections 171(a)(2), 265, 280C, 291(a)(3), and
21        832(b)(5)(B)(i) of the Internal Revenue Code, plus,
22        for tax years ending on or after December 31, 2011,
23        amounts disallowed as deductions by Section 45G(e)(3)
24        of the Internal Revenue Code and, for taxable years
25        ending on or after December 31, 2008, any amount
26        included in gross income under Section 87 of the

 

 

10000SB0472sam001- 75 -LRB100 05155 HLH 23971 a

1        Internal Revenue Code and the policyholders' share of
2        tax-exempt interest of a life insurance company under
3        Section 807(a)(2)(B) of the Internal Revenue Code (in
4        the case of a life insurance company with gross income
5        from a decrease in reserves for the tax year) or
6        Section 807(b)(1)(B) of the Internal Revenue Code (in
7        the case of a life insurance company allowed a
8        deduction for an increase in reserves for the tax
9        year); the provisions of this subparagraph are exempt
10        from the provisions of Section 250;
11            (J) An amount equal to all amounts included in such
12        total which are exempt from taxation by this State
13        either by reason of its statutes or Constitution or by
14        reason of the Constitution, treaties or statutes of the
15        United States; provided that, in the case of any
16        statute of this State that exempts income derived from
17        bonds or other obligations from the tax imposed under
18        this Act, the amount exempted shall be the interest net
19        of bond premium amortization;
20            (K) For taxable years ending prior to December 31,
21        2017, an An amount equal to those dividends included in
22        such total which were paid by a corporation which
23        conducts business operations in a River Edge
24        Redevelopment Zone or zones created under the River
25        Edge Redevelopment Zone Act and conducts substantially
26        all of its operations in a River Edge Redevelopment

 

 

10000SB0472sam001- 76 -LRB100 05155 HLH 23971 a

1        Zone or zones. This subparagraph (K) is exempt from the
2        provisions of Section 250;
3            (L) For taxable years ending prior to December 31,
4        2017, an An amount equal to those dividends included in
5        such total that were paid by a corporation that
6        conducts business operations in a federally designated
7        Foreign Trade Zone or Sub-Zone and that is designated a
8        High Impact Business located in Illinois; provided
9        that dividends eligible for the deduction provided in
10        subparagraph (K) of paragraph 2 of this subsection
11        shall not be eligible for the deduction provided under
12        this subparagraph (L);
13            (M) For any taxpayer that is a financial
14        organization within the meaning of Section 304(c) of
15        this Act, an amount included in such total as interest
16        income from a loan or loans made by such taxpayer to a
17        borrower, to the extent that such a loan is secured by
18        property which is eligible for the River Edge
19        Redevelopment Zone Investment Credit. To determine the
20        portion of a loan or loans that is secured by property
21        eligible for a Section 201(f) investment credit to the
22        borrower, the entire principal amount of the loan or
23        loans between the taxpayer and the borrower should be
24        divided into the basis of the Section 201(f) investment
25        credit property which secures the loan or loans, using
26        for this purpose the original basis of such property on

 

 

10000SB0472sam001- 77 -LRB100 05155 HLH 23971 a

1        the date that it was placed in service in the River
2        Edge Redevelopment Zone. The subtraction modification
3        available to taxpayer in any year under this subsection
4        shall be that portion of the total interest paid by the
5        borrower with respect to such loan attributable to the
6        eligible property as calculated under the previous
7        sentence. This subparagraph (M) is exempt from the
8        provisions of Section 250;
9            (M-1) For any taxpayer that is a financial
10        organization within the meaning of Section 304(c) of
11        this Act, an amount included in such total as interest
12        income from a loan or loans made by such taxpayer to a
13        borrower, to the extent that such a loan is secured by
14        property which is eligible for the High Impact Business
15        Investment Credit. To determine the portion of a loan
16        or loans that is secured by property eligible for a
17        Section 201(h) investment credit to the borrower, the
18        entire principal amount of the loan or loans between
19        the taxpayer and the borrower should be divided into
20        the basis of the Section 201(h) investment credit
21        property which secures the loan or loans, using for
22        this purpose the original basis of such property on the
23        date that it was placed in service in a federally
24        designated Foreign Trade Zone or Sub-Zone located in
25        Illinois. No taxpayer that is eligible for the
26        deduction provided in subparagraph (M) of paragraph

 

 

10000SB0472sam001- 78 -LRB100 05155 HLH 23971 a

1        (2) of this subsection shall be eligible for the
2        deduction provided under this subparagraph (M-1). The
3        subtraction modification available to taxpayers in any
4        year under this subsection shall be that portion of the
5        total interest paid by the borrower with respect to
6        such loan attributable to the eligible property as
7        calculated under the previous sentence;
8            (N) Two times any contribution made during the
9        taxable year to a designated zone organization to the
10        extent that the contribution (i) qualifies as a
11        charitable contribution under subsection (c) of
12        Section 170 of the Internal Revenue Code and (ii) must,
13        by its terms, be used for a project approved by the
14        Department of Commerce and Economic Opportunity under
15        Section 11 of the Illinois Enterprise Zone Act or under
16        Section 10-10 of the River Edge Redevelopment Zone Act.
17        This subparagraph (N) is exempt from the provisions of
18        Section 250;
19            (O) An amount equal to: (i) 85% for taxable years
20        ending on or before December 31, 1992, or, a percentage
21        equal to the percentage allowable under Section
22        243(a)(1) of the Internal Revenue Code of 1986 for
23        taxable years ending after December 31, 1992, of the
24        amount by which dividends included in taxable income
25        and received from a corporation that is not created or
26        organized under the laws of the United States or any

 

 

10000SB0472sam001- 79 -LRB100 05155 HLH 23971 a

1        state or political subdivision thereof, including, for
2        taxable years ending on or after December 31, 1988,
3        dividends received or deemed received or paid or deemed
4        paid under Sections 951 through 965 of the Internal
5        Revenue Code, exceed the amount of the modification
6        provided under subparagraph (G) of paragraph (2) of
7        this subsection (b) which is related to such dividends,
8        and including, for taxable years ending on or after
9        December 31, 2008, dividends received from a captive
10        real estate investment trust; plus (ii) 100% of the
11        amount by which dividends, included in taxable income
12        and received, including, for taxable years ending on or
13        after December 31, 1988, dividends received or deemed
14        received or paid or deemed paid under Sections 951
15        through 964 of the Internal Revenue Code and including,
16        for taxable years ending on or after December 31, 2008,
17        dividends received from a captive real estate
18        investment trust, from any such corporation specified
19        in clause (i) that would but for the provisions of
20        Section 1504 (b) (3) of the Internal Revenue Code be
21        treated as a member of the affiliated group which
22        includes the dividend recipient, exceed the amount of
23        the modification provided under subparagraph (G) of
24        paragraph (2) of this subsection (b) which is related
25        to such dividends. This subparagraph (O) is exempt from
26        the provisions of Section 250 of this Act;

 

 

10000SB0472sam001- 80 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 81 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 82 -LRB100 05155 HLH 23971 a

1                basis was taken, "x" equals "y" multiplied by
2                30 and then divided by 70 (or "y" multiplied by
3                0.429); and
4                    (ii) for property on which a bonus
5                depreciation deduction of 50% of the adjusted
6                basis was taken, "x" equals "y" multiplied by
7                1.0.
8            The aggregate amount deducted under this
9        subparagraph in all taxable years for any one piece of
10        property may not exceed the amount of the bonus
11        depreciation deduction taken on that property on the
12        taxpayer's federal income tax return under subsection
13        (k) of Section 168 of the Internal Revenue Code. This
14        subparagraph (T) is exempt from the provisions of
15        Section 250;
16            (U) If the taxpayer sells, transfers, abandons, or
17        otherwise disposes of property for which the taxpayer
18        was required in any taxable year to make an addition
19        modification under subparagraph (E-10), then an amount
20        equal to that addition modification.
21            If the taxpayer continues to own property through
22        the last day of the last tax year for which the
23        taxpayer may claim a depreciation deduction for
24        federal income tax purposes and for which the taxpayer
25        was required in any taxable year to make an addition
26        modification under subparagraph (E-10), then an amount

 

 

10000SB0472sam001- 83 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 84 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 85 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 86 -LRB100 05155 HLH 23971 a

1        loss (including expenses incurred by the insurance
2        company) that would have been taken into account as a
3        deduction for federal income tax purposes if the
4        expense or loss had been uninsured. If a taxpayer makes
5        the election provided for by this subparagraph (Y), the
6        insurer to which the premiums were paid must add back
7        to income the amount subtracted by the taxpayer
8        pursuant to this subparagraph (Y). This subparagraph
9        (Y) is exempt from the provisions of Section 250; and
10            (Z) The difference between the nondeductible
11        controlled foreign corporation dividends under Section
12        965(e)(3) of the Internal Revenue Code over the taxable
13        income of the taxpayer, computed without regard to
14        Section 965(e)(2)(A) of the Internal Revenue Code, and
15        without regard to any net operating loss deduction.
16        This subparagraph (Z) is exempt from the provisions of
17        Section 250.
18        (3) Special rule. For purposes of paragraph (2) (A),
19    "gross income" in the case of a life insurance company, for
20    tax years ending on and after December 31, 1994, and prior
21    to December 31, 2011, shall mean the gross investment
22    income for the taxable year and, for tax years ending on or
23    after December 31, 2011, shall mean all amounts included in
24    life insurance gross income under Section 803(a)(3) of the
25    Internal Revenue Code.
 

 

 

10000SB0472sam001- 87 -LRB100 05155 HLH 23971 a

1    (c) Trusts and estates.
2        (1) In general. In the case of a trust or estate, base
3    income means an amount equal to the taxpayer's taxable
4    income for the taxable year as modified by paragraph (2).
5        (2) Modifications. Subject to the provisions of
6    paragraph (3), the taxable income referred to in paragraph
7    (1) shall be modified by adding thereto the sum of the
8    following amounts:
9            (A) An amount equal to all amounts paid or accrued
10        to the taxpayer as interest or dividends during the
11        taxable year to the extent excluded from gross income
12        in the computation of taxable income;
13            (B) In the case of (i) an estate, $600; (ii) a
14        trust which, under its governing instrument, is
15        required to distribute all of its income currently,
16        $300; and (iii) any other trust, $100, but in each such
17        case, only to the extent such amount was deducted in
18        the computation of taxable income;
19            (C) An amount equal to the amount of tax imposed by
20        this Act to the extent deducted from gross income in
21        the computation of taxable income for the taxable year;
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

 

 

10000SB0472sam001- 88 -LRB100 05155 HLH 23971 a

1        carryback or carryforward from a taxable year ending
2        prior to December 31, 1986 is an element of taxable
3        income under paragraph (1) of subsection (e) or
4        subparagraph (E) of paragraph (2) of subsection (e),
5        the amount by which addition modifications other than
6        those provided by this subparagraph (E) exceeded
7        subtraction modifications in such taxable year, with
8        the following limitations applied in the order that
9        they are listed:
10                (i) 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 be reduced by the amount of
14            addition modification under this subparagraph (E)
15            which related to that net operating loss and which
16            was taken into account in calculating the base
17            income of an earlier taxable year, and
18                (ii) the addition modification relating to the
19            net operating loss carried back or forward to the
20            taxable year from any taxable year ending prior to
21            December 31, 1986 shall not exceed the amount of
22            such carryback or carryforward;
23            For taxable years in which there is a net operating
24        loss carryback or carryforward from more than one other
25        taxable year ending prior to December 31, 1986, the
26        addition modification provided in this subparagraph

 

 

10000SB0472sam001- 89 -LRB100 05155 HLH 23971 a

1        (E) shall be the sum of the amounts computed
2        independently under the preceding provisions of this
3        subparagraph (E) for each such taxable year;
4            (F) For taxable years ending on or after January 1,
5        1989, an amount equal to the tax deducted pursuant to
6        Section 164 of the Internal Revenue Code if the trust
7        or estate is claiming the same tax for purposes of the
8        Illinois foreign tax credit under Section 601 of this
9        Act;
10            (G) An amount equal to the amount of the capital
11        gain deduction allowable under the Internal Revenue
12        Code, to the extent deducted from gross income in the
13        computation of taxable income;
14            (G-5) For taxable years ending after December 31,
15        1997, an amount equal to any eligible remediation costs
16        that the trust or estate deducted in computing adjusted
17        gross income and for which the trust or estate claims a
18        credit under subsection (l) of Section 201;
19            (G-10) For taxable years 2001 and thereafter, an
20        amount equal to the bonus depreciation deduction taken
21        on the taxpayer's federal income tax return for the
22        taxable year under subsection (k) of Section 168 of the
23        Internal Revenue Code; and
24            (G-11) If the taxpayer sells, transfers, abandons,
25        or otherwise disposes of property for which the
26        taxpayer was required in any taxable year to make an

 

 

10000SB0472sam001- 90 -LRB100 05155 HLH 23971 a

1        addition modification under subparagraph (G-10), then
2        an amount equal to the aggregate amount of the
3        deductions taken in all taxable years under
4        subparagraph (R) with respect to that property.
5            If the taxpayer continues to own property through
6        the last day of the last tax year for which the
7        taxpayer may claim a depreciation deduction for
8        federal income tax purposes and for which the taxpayer
9        was allowed in any taxable year to make a subtraction
10        modification under subparagraph (R), then an amount
11        equal to that subtraction modification.
12            The taxpayer is required to make the addition
13        modification under this subparagraph only once with
14        respect to any one piece of property;
15            (G-12) An amount equal to the amount otherwise
16        allowed as a deduction in computing base income for
17        interest paid, accrued, or incurred, directly or
18        indirectly, (i) for taxable years ending on or after
19        December 31, 2004, to a foreign person who would be a
20        member of the same unitary business group but for the
21        fact that the foreign person's business activity
22        outside the United States is 80% or more of the foreign
23        person's total business activity and (ii) for taxable
24        years ending on or after December 31, 2008, to a person
25        who would be a member of the same unitary business
26        group but for the fact that the person is prohibited

 

 

10000SB0472sam001- 91 -LRB100 05155 HLH 23971 a

1        under Section 1501(a)(27) from being included in the
2        unitary business group because he or she is ordinarily
3        required to apportion business income under different
4        subsections of Section 304. The addition modification
5        required by this subparagraph shall be reduced to the
6        extent that dividends were included in base income of
7        the unitary group for the same taxable year and
8        received by the taxpayer or by a member of the
9        taxpayer's unitary business group (including amounts
10        included in gross income pursuant to Sections 951
11        through 964 of the Internal Revenue Code and amounts
12        included in gross income under Section 78 of the
13        Internal Revenue Code) with respect to the stock of the
14        same person to whom the interest was paid, accrued, or
15        incurred.
16            This paragraph shall not apply to the following:
17                (i) an item of interest paid, accrued, or
18            incurred, directly or indirectly, to a person who
19            is subject in a foreign country or state, other
20            than a state which requires mandatory unitary
21            reporting, to a tax on or measured by net income
22            with respect to such interest; or
23                (ii) an item of interest paid, accrued, or
24            incurred, directly or indirectly, to a person if
25            the taxpayer can establish, based on a
26            preponderance of the evidence, both of the

 

 

10000SB0472sam001- 92 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 93 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 94 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 95 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 96 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 97 -LRB100 05155 HLH 23971 a

1        addition modification required by this subparagraph
2        shall be reduced to the extent that dividends were
3        included in base income of the unitary group for the
4        same taxable year and received by the taxpayer or by a
5        member of the taxpayer's unitary business group
6        (including amounts included in gross income under
7        Sections 951 through 964 of the Internal Revenue Code
8        and amounts included in gross income under Section 78
9        of the Internal Revenue Code) with respect to the stock
10        of the same person to whom the premiums and costs were
11        directly or indirectly paid, incurred, or accrued. The
12        preceding sentence does not apply to the extent that
13        the same dividends caused a reduction to the addition
14        modification required under Section 203(c)(2)(G-12) or
15        Section 203(c)(2)(G-13) of this Act;
16            (G-15) An amount equal to the credit allowable to
17        the taxpayer under Section 218(a) of this Act,
18        determined without regard to Section 218(c) of this
19        Act;
20    and by deducting from the total so obtained the sum of the
21    following amounts:
22            (H) An amount equal to all amounts included in such
23        total pursuant to the provisions of Sections 402(a),
24        402(c), 403(a), 403(b), 406(a), 407(a) and 408 of the
25        Internal Revenue Code or included in such total as
26        distributions under the provisions of any retirement

 

 

10000SB0472sam001- 98 -LRB100 05155 HLH 23971 a

1        or disability plan for employees of any governmental
2        agency or unit, or retirement payments to retired
3        partners, which payments are excluded in computing net
4        earnings from self employment by Section 1402 of the
5        Internal Revenue Code and regulations adopted pursuant
6        thereto;
7            (I) The valuation limitation amount;
8            (J) An amount equal to the amount of any tax
9        imposed by this Act which was refunded to the taxpayer
10        and included in such total for the taxable year;
11            (K) An amount equal to all amounts included in
12        taxable income as modified by subparagraphs (A), (B),
13        (C), (D), (E), (F) and (G) which are exempt from
14        taxation by this State either by reason of its statutes
15        or Constitution or by reason of the Constitution,
16        treaties or statutes of the United States; provided
17        that, in the case of any statute of this State that
18        exempts income derived from bonds or other obligations
19        from the tax imposed under this Act, the amount
20        exempted shall be the interest net of bond premium
21        amortization;
22            (L) With the exception of any amounts subtracted
23        under subparagraph (K), an amount equal to the sum of
24        all amounts disallowed as deductions by (i) Sections
25        171(a) (2) and 265(a)(2) of the Internal Revenue Code,
26        and all amounts of expenses allocable to interest and

 

 

10000SB0472sam001- 99 -LRB100 05155 HLH 23971 a

1        disallowed as deductions by Section 265(1) of the
2        Internal Revenue Code; and (ii) for taxable years
3        ending on or after August 13, 1999, Sections 171(a)(2),
4        265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue
5        Code, plus, (iii) for taxable years ending on or after
6        December 31, 2011, Section 45G(e)(3) of the Internal
7        Revenue Code and, for taxable years ending on or after
8        December 31, 2008, any amount included in gross income
9        under Section 87 of the Internal Revenue Code; the
10        provisions of this subparagraph are exempt from the
11        provisions of Section 250;
12            (M) For taxable years ending prior to December 31,
13        2017, an An amount equal to those dividends included in
14        such total which were paid by a corporation which
15        conducts business operations in a River Edge
16        Redevelopment Zone or zones created under the River
17        Edge Redevelopment Zone Act and conducts substantially
18        all of its operations in a River Edge Redevelopment
19        Zone or zones. This subparagraph (M) is exempt from the
20        provisions of Section 250;
21            (N) An amount equal to any contribution made to a
22        job training project established pursuant to the Tax
23        Increment Allocation Redevelopment Act;
24            (O) For taxable years ending prior to December 31,
25        2017, an An amount equal to those dividends included in
26        such total that were paid by a corporation that

 

 

10000SB0472sam001- 100 -LRB100 05155 HLH 23971 a

1        conducts business operations in a federally designated
2        Foreign Trade Zone or Sub-Zone and that is designated a
3        High Impact Business located in Illinois; provided
4        that dividends eligible for the deduction provided in
5        subparagraph (M) of paragraph (2) of this subsection
6        shall not be eligible for the deduction provided under
7        this subparagraph (O);
8            (P) An amount equal to the amount of the deduction
9        used to compute the federal income tax credit for
10        restoration of substantial amounts held under claim of
11        right for the taxable year pursuant to Section 1341 of
12        the Internal Revenue Code;
13            (Q) For taxable year 1999 and thereafter, an amount
14        equal to the amount of any (i) distributions, to the
15        extent includible in gross income for federal income
16        tax purposes, made to the taxpayer because of his or
17        her status as a victim of persecution for racial or
18        religious reasons by Nazi Germany or any other Axis
19        regime or as an heir of the victim and (ii) items of
20        income, to the extent includible in gross income for
21        federal income tax purposes, attributable to, derived
22        from or in any way related to assets stolen from,
23        hidden from, or otherwise lost to a victim of
24        persecution for racial or religious reasons by Nazi
25        Germany or any other Axis regime immediately prior to,
26        during, and immediately after World War II, including,

 

 

10000SB0472sam001- 101 -LRB100 05155 HLH 23971 a

1        but not limited to, interest on the proceeds receivable
2        as insurance under policies issued to a victim of
3        persecution for racial or religious reasons by Nazi
4        Germany or any other Axis regime by European insurance
5        companies immediately prior to and during World War II;
6        provided, however, this subtraction from federal
7        adjusted gross income does not apply to assets acquired
8        with such assets or with the proceeds from the sale of
9        such assets; provided, further, this paragraph shall
10        only apply to a taxpayer who was the first recipient of
11        such assets after their recovery and who is a victim of
12        persecution for racial or religious reasons by Nazi
13        Germany or any other Axis regime or as an heir of the
14        victim. The amount of and the eligibility for any
15        public assistance, benefit, or similar entitlement is
16        not affected by the inclusion of items (i) and (ii) of
17        this paragraph in gross income for federal income tax
18        purposes. This paragraph is exempt from the provisions
19        of Section 250;
20            (R) For taxable years 2001 and thereafter, for the
21        taxable year in which the bonus depreciation deduction
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

 

 

10000SB0472sam001- 102 -LRB100 05155 HLH 23971 a

1            deduction taken for the taxable year on the
2            taxpayer's federal income tax return on property
3            for which the bonus depreciation deduction was
4            taken in any year under subsection (k) of Section
5            168 of the Internal Revenue Code, but not including
6            the bonus depreciation deduction;
7                (2) for taxable years ending on or before
8            December 31, 2005, "x" equals "y" multiplied by 30
9            and then divided by 70 (or "y" multiplied by
10            0.429); and
11                (3) for taxable years ending after December
12            31, 2005:
13                    (i) for property on which a bonus
14                depreciation deduction of 30% of the adjusted
15                basis was taken, "x" equals "y" multiplied by
16                30 and then divided by 70 (or "y" multiplied by
17                0.429); and
18                    (ii) for property on which a bonus
19                depreciation deduction of 50% of the adjusted
20                basis was taken, "x" equals "y" multiplied by
21                1.0.
22            The aggregate amount deducted under this
23        subparagraph in all taxable years for any one piece of
24        property may not exceed the amount of the bonus
25        depreciation deduction taken on that property on the
26        taxpayer's federal income tax return under subsection

 

 

10000SB0472sam001- 103 -LRB100 05155 HLH 23971 a

1        (k) of Section 168 of the Internal Revenue Code. This
2        subparagraph (R) is exempt from the provisions of
3        Section 250;
4            (S) If the taxpayer sells, transfers, abandons, or
5        otherwise disposes of property for which the taxpayer
6        was required in any taxable year to make an addition
7        modification under subparagraph (G-10), then an amount
8        equal to that addition modification.
9            If the taxpayer continues to own property through
10        the last day of the last tax year for which the
11        taxpayer may claim a depreciation deduction for
12        federal income tax purposes and for which the taxpayer
13        was required in any taxable year to make an addition
14        modification under subparagraph (G-10), then an amount
15        equal to that addition 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            This subparagraph (S) is exempt from the
20        provisions of Section 250;
21            (T) The amount of (i) any interest income (net of
22        the deductions allocable thereto) taken into account
23        for the taxable year with respect to a transaction with
24        a taxpayer that is required to make an addition
25        modification with respect to such transaction under
26        Section 203(a)(2)(D-17), 203(b)(2)(E-12),

 

 

10000SB0472sam001- 104 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 105 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 106 -LRB100 05155 HLH 23971 a

1            (W) in the case of an estate, an amount equal to
2        all amounts included in such total pursuant to the
3        provisions of Section 111 of the Internal Revenue Code
4        as a recovery of items previously deducted by the
5        decedent from adjusted gross income in the computation
6        of taxable income. This subparagraph (W) is exempt from
7        Section 250;
8            (X) an amount equal to the refund included in such
9        total of any tax deducted for federal income tax
10        purposes, to the extent that deduction was added back
11        under subparagraph (F). This subparagraph (X) is
12        exempt from the provisions of Section 250; and
13            (Y) For taxable years ending on or after December
14        31, 2011, in the case of a taxpayer who was required to
15        add back any insurance premiums under Section
16        203(c)(2)(G-14), such taxpayer may elect to subtract
17        that part of a reimbursement received from the
18        insurance company equal to the amount of the expense or
19        loss (including expenses incurred by the insurance
20        company) that would have been taken into account as a
21        deduction for federal income tax purposes if the
22        expense or loss had been uninsured. If a taxpayer makes
23        the election provided for by this subparagraph (Y), the
24        insurer to which the premiums were paid must add back
25        to income the amount subtracted by the taxpayer
26        pursuant to this subparagraph (Y). This subparagraph

 

 

10000SB0472sam001- 107 -LRB100 05155 HLH 23971 a

1        (Y) is exempt from the provisions of Section 250.
2        (3) Limitation. The amount of any modification
3    otherwise required under this subsection shall, under
4    regulations prescribed by the Department, be adjusted by
5    any amounts included therein which were properly paid,
6    credited, or required to be distributed, or permanently set
7    aside for charitable purposes pursuant to Internal Revenue
8    Code Section 642(c) during the taxable year.
 
9    (d) Partnerships.
10        (1) In general. In the case of a partnership, base
11    income means an amount equal to the taxpayer's taxable
12    income for the taxable year as modified by paragraph (2).
13        (2) Modifications. The taxable income referred to in
14    paragraph (1) shall be modified by adding thereto the sum
15    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 taxable income;
20            (B) An amount equal to the amount of tax imposed by
21        this Act to the extent deducted from gross income for
22        the taxable year;
23            (C) The amount of deductions allowed to the
24        partnership pursuant to Section 707 (c) of the Internal
25        Revenue Code in calculating its taxable income;

 

 

10000SB0472sam001- 108 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 109 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 110 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 111 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 112 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 113 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 114 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 115 -LRB100 05155 HLH 23971 a

1            under Section 404 of this Act;
2            (D-9) For taxable years ending on or after December
3        31, 2008, an amount equal to the amount of insurance
4        premium expenses and costs otherwise allowed as a
5        deduction in computing base income, and that were paid,
6        accrued, or incurred, directly or indirectly, to a
7        person who would be a member of the same unitary
8        business group but for the fact that the person is
9        prohibited under Section 1501(a)(27) from being
10        included in the unitary business group because he or
11        she is ordinarily required to apportion business
12        income under different subsections of Section 304. The
13        addition modification required by this subparagraph
14        shall be reduced to the extent that dividends were
15        included in base income of the unitary group for the
16        same taxable year and received by the taxpayer or by a
17        member of the taxpayer's unitary business group
18        (including amounts included in gross income under
19        Sections 951 through 964 of the Internal Revenue Code
20        and amounts included in gross income under Section 78
21        of the Internal Revenue Code) with respect to the stock
22        of the same person to whom the premiums and costs were
23        directly or indirectly paid, incurred, or accrued. The
24        preceding sentence does not apply to the extent that
25        the same dividends caused a reduction to the addition
26        modification required under Section 203(d)(2)(D-7) or

 

 

10000SB0472sam001- 116 -LRB100 05155 HLH 23971 a

1        Section 203(d)(2)(D-8) of this Act;
2            (D-10) An amount equal to the credit allowable to
3        the taxpayer under Section 218(a) of this Act,
4        determined without regard to Section 218(c) of this
5        Act;
6    and by deducting from the total so obtained the following
7    amounts:
8            (E) The valuation limitation amount;
9            (F) An amount equal to the amount of any tax
10        imposed by this Act which was refunded to the taxpayer
11        and included in such total for the taxable year;
12            (G) An amount equal to all amounts included in
13        taxable income as modified by subparagraphs (A), (B),
14        (C) and (D) which are exempt from taxation by this
15        State either by reason of its statutes or Constitution
16        or by reason of the Constitution, treaties or statutes
17        of the United States; provided that, in the case of any
18        statute of this State that exempts income derived from
19        bonds or other obligations from the tax imposed under
20        this Act, the amount exempted shall be the interest net
21        of bond premium amortization;
22            (H) Any income of the partnership which
23        constitutes personal service income as defined in
24        Section 1348 (b) (1) of the Internal Revenue Code (as
25        in effect December 31, 1981) or a reasonable allowance
26        for compensation paid or accrued for services rendered

 

 

10000SB0472sam001- 117 -LRB100 05155 HLH 23971 a

1        by partners to the partnership, whichever is greater;
2        this subparagraph (H) is exempt from the provisions of
3        Section 250;
4            (I) An amount equal to all amounts of income
5        distributable to an entity subject to the Personal
6        Property Tax Replacement Income Tax imposed by
7        subsections (c) and (d) of Section 201 of this Act
8        including amounts distributable to organizations
9        exempt from federal income tax by reason of Section
10        501(a) of the Internal Revenue Code; this subparagraph
11        (I) is exempt from the provisions of Section 250;
12            (J) With the exception of any amounts subtracted
13        under subparagraph (G), an amount equal to the sum of
14        all amounts disallowed as deductions by (i) Sections
15        171(a) (2), and 265(2) of the Internal Revenue Code,
16        and all amounts of expenses allocable to interest and
17        disallowed as deductions by Section 265(1) of the
18        Internal Revenue Code; and (ii) for taxable years
19        ending on or after August 13, 1999, Sections 171(a)(2),
20        265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue
21        Code, plus, (iii) for taxable years ending on or after
22        December 31, 2011, Section 45G(e)(3) of the Internal
23        Revenue Code and, for taxable years ending on or after
24        December 31, 2008, any amount included in gross income
25        under Section 87 of the Internal Revenue Code; the
26        provisions of this subparagraph are exempt from the

 

 

10000SB0472sam001- 118 -LRB100 05155 HLH 23971 a

1        provisions of Section 250;
2            (K) For taxable years ending prior to December 31,
3        2017, an An amount equal to those dividends included in
4        such total which were paid by a corporation which
5        conducts business operations in a River Edge
6        Redevelopment Zone or zones created under the River
7        Edge Redevelopment Zone Act and conducts substantially
8        all of its operations from a River Edge Redevelopment
9        Zone or zones. This subparagraph (K) is exempt from the
10        provisions of Section 250;
11            (L) An amount equal to any contribution made to a
12        job training project established pursuant to the Real
13        Property Tax Increment Allocation Redevelopment Act;
14            (M) For taxable years ending prior to December 31,
15        2017, an An amount equal to those dividends included in
16        such total that were paid by a corporation that
17        conducts business operations in a federally designated
18        Foreign Trade Zone or Sub-Zone and that is designated a
19        High Impact Business located in Illinois; provided
20        that dividends eligible for the deduction provided in
21        subparagraph (K) of paragraph (2) of this subsection
22        shall not be eligible for the deduction provided under
23        this subparagraph (M);
24            (N) An amount equal to the amount of the deduction
25        used to compute the federal income tax credit for
26        restoration of substantial amounts held under claim of

 

 

10000SB0472sam001- 119 -LRB100 05155 HLH 23971 a

1        right for the taxable year pursuant to Section 1341 of
2        the Internal Revenue Code;
3            (O) For taxable years 2001 and thereafter, for the
4        taxable year in which the bonus depreciation deduction
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 was
13            taken in any year under subsection (k) of Section
14            168 of the Internal Revenue Code, but not including
15            the bonus depreciation deduction;
16                (2) for taxable years ending on or before
17            December 31, 2005, "x" equals "y" multiplied by 30
18            and then divided by 70 (or "y" multiplied by
19            0.429); and
20                (3) for taxable years ending after December
21            31, 2005:
22                    (i) for property on which a bonus
23                depreciation deduction of 30% of the adjusted
24                basis was taken, "x" equals "y" multiplied by
25                30 and then divided by 70 (or "y" multiplied by
26                0.429); and

 

 

10000SB0472sam001- 120 -LRB100 05155 HLH 23971 a

1                    (ii) for property on which a bonus
2                depreciation deduction of 50% of the adjusted
3                basis was taken, "x" equals "y" multiplied by
4                1.0.
5            The aggregate amount deducted under this
6        subparagraph in all taxable years for any one piece of
7        property may not exceed the amount of the bonus
8        depreciation deduction taken on that property on the
9        taxpayer's federal income tax return under subsection
10        (k) of Section 168 of the Internal Revenue Code. This
11        subparagraph (O) is exempt from the provisions of
12        Section 250;
13            (P) If the taxpayer sells, transfers, abandons, or
14        otherwise disposes of property for which the taxpayer
15        was required in any taxable year to make an addition
16        modification under subparagraph (D-5), then an amount
17        equal to that addition modification.
18            If the taxpayer continues to own property through
19        the last day of the last tax year for which the
20        taxpayer may claim a depreciation deduction for
21        federal income tax purposes and for which the taxpayer
22        was required in any taxable year to make an addition
23        modification under subparagraph (D-5), then an amount
24        equal to that addition modification.
25            The taxpayer is allowed to take the deduction under
26        this subparagraph only once with respect to any one

 

 

10000SB0472sam001- 121 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 122 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 123 -LRB100 05155 HLH 23971 a

1        unitary business group because he or she is ordinarily
2        required to apportion business income under different
3        subsections of Section 304, but not to exceed the
4        addition modification required to be made for the same
5        taxable year under Section 203(d)(2)(D-8) for
6        intangible expenses and costs paid, accrued, or
7        incurred, directly or indirectly, to the same person.
8        This subparagraph (S) is exempt from Section 250; and
9            (T) For taxable years ending on or after December
10        31, 2011, in the case of a taxpayer who was required to
11        add back any insurance premiums under Section
12        203(d)(2)(D-9), such taxpayer may elect to subtract
13        that part of a reimbursement received from the
14        insurance company equal to the amount of the expense or
15        loss (including expenses incurred by the insurance
16        company) that would have been taken into account as a
17        deduction for federal income tax purposes if the
18        expense or loss had been uninsured. If a taxpayer makes
19        the election provided for by this subparagraph (T), the
20        insurer to which the premiums were paid must add back
21        to income the amount subtracted by the taxpayer
22        pursuant to this subparagraph (T). This subparagraph
23        (T) is exempt from the provisions of Section 250.
 
24    (e) Gross income; adjusted gross income; taxable income.
25        (1) In general. Subject to the provisions of paragraph

 

 

10000SB0472sam001- 124 -LRB100 05155 HLH 23971 a

1    (2) and subsection (b) (3), for purposes of this Section
2    and Section 803(e), a taxpayer's gross income, adjusted
3    gross income, or taxable income for the taxable year shall
4    mean the amount of gross income, adjusted gross income or
5    taxable income properly reportable for federal income tax
6    purposes for the taxable year under the provisions of the
7    Internal Revenue Code. Taxable income may be less than
8    zero. However, for taxable years ending on or after
9    December 31, 1986, net operating loss carryforwards from
10    taxable years ending prior to December 31, 1986, may not
11    exceed the sum of federal taxable income for the taxable
12    year before net operating loss deduction, plus the excess
13    of addition modifications over subtraction modifications
14    for the taxable year. For taxable years ending prior to
15    December 31, 1986, taxable income may never be an amount in
16    excess of the net operating loss for the taxable year as
17    defined in subsections (c) and (d) of Section 172 of the
18    Internal Revenue Code, provided that when taxable income of
19    a corporation (other than a Subchapter S corporation),
20    trust, or estate is less than zero and addition
21    modifications, other than those provided by subparagraph
22    (E) of paragraph (2) of subsection (b) for corporations or
23    subparagraph (E) of paragraph (2) of subsection (c) for
24    trusts and estates, exceed subtraction modifications, an
25    addition modification must be made under those
26    subparagraphs for any other taxable year to which the

 

 

10000SB0472sam001- 125 -LRB100 05155 HLH 23971 a

1    taxable income less than zero (net operating loss) is
2    applied under Section 172 of the Internal Revenue Code or
3    under subparagraph (E) of paragraph (2) of this subsection
4    (e) applied in conjunction with Section 172 of the Internal
5    Revenue Code.
6        (2) Special rule. For purposes of paragraph (1) of this
7    subsection, the taxable income properly reportable for
8    federal income tax purposes shall mean:
9            (A) Certain life insurance companies. In the case
10        of a life insurance company subject to the tax imposed
11        by Section 801 of the Internal Revenue Code, life
12        insurance company taxable income, plus the amount of
13        distribution from pre-1984 policyholder surplus
14        accounts as calculated under Section 815a of the
15        Internal Revenue Code;
16            (B) Certain other insurance companies. In the case
17        of mutual insurance companies subject to the tax
18        imposed by Section 831 of the Internal Revenue Code,
19        insurance company taxable income;
20            (C) Regulated investment companies. In the case of
21        a regulated investment company subject to the tax
22        imposed by Section 852 of the Internal Revenue Code,
23        investment company taxable income;
24            (D) Real estate investment trusts. In the case of a
25        real estate investment trust subject to the tax imposed
26        by Section 857 of the Internal Revenue Code, real

 

 

10000SB0472sam001- 126 -LRB100 05155 HLH 23971 a

1        estate investment trust taxable income;
2            (E) Consolidated corporations. In the case of a
3        corporation which is a member of an affiliated group of
4        corporations filing a consolidated income tax return
5        for the taxable year for federal income tax purposes,
6        taxable income determined as if such corporation had
7        filed a separate return for federal income tax purposes
8        for the taxable year and each preceding taxable year
9        for which it was a member of an affiliated group. For
10        purposes of this subparagraph, the taxpayer's separate
11        taxable income shall be determined as if the election
12        provided by Section 243(b) (2) of the Internal Revenue
13        Code had been in effect for all such years;
14            (F) Cooperatives. In the case of a cooperative
15        corporation or association, the taxable income of such
16        organization determined in accordance with the
17        provisions of Section 1381 through 1388 of the Internal
18        Revenue Code, but without regard to the prohibition
19        against offsetting losses from patronage activities
20        against income from nonpatronage activities; except
21        that a cooperative corporation or association may make
22        an election to follow its federal income tax treatment
23        of patronage losses and nonpatronage losses. In the
24        event such election is made, such losses shall be
25        computed and carried over in a manner consistent with
26        subsection (a) of Section 207 of this Act and

 

 

10000SB0472sam001- 127 -LRB100 05155 HLH 23971 a

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

 

 

10000SB0472sam001- 128 -LRB100 05155 HLH 23971 a

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

 

 

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1    for the business under Section 304 of this Act for the
2    taxable year or the average of the apportionment fractions
3    computed for the business under Section 304 of this Act for
4    the taxable year and for the 2 immediately preceding
5    taxable years.
 
6    (f) Valuation limitation amount.
7        (1) In general. The valuation limitation amount
8    referred to in subsections (a) (2) (G), (c) (2) (I) and
9    (d)(2) (E) is an amount equal to:
10            (A) The sum of the pre-August 1, 1969 appreciation
11        amounts (to the extent consisting of gain reportable
12        under the provisions of Section 1245 or 1250 of the
13        Internal Revenue Code) for all property in respect of
14        which such gain was reported for the taxable year; plus
15            (B) The lesser of (i) the sum of the pre-August 1,
16        1969 appreciation amounts (to the extent consisting of
17        capital gain) for all property in respect of which such
18        gain was reported for federal income tax purposes for
19        the taxable year, or (ii) the net capital gain for the
20        taxable year, reduced in either case by any amount of
21        such gain included in the amount determined under
22        subsection (a) (2) (F) or (c) (2) (H).
23        (2) Pre-August 1, 1969 appreciation amount.
24            (A) If the fair market value of property referred
25        to in paragraph (1) was readily ascertainable on August

 

 

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1        1, 1969, the pre-August 1, 1969 appreciation amount for
2        such property is the lesser of (i) the excess of such
3        fair market value over the taxpayer's basis (for
4        determining gain) for such property on that date
5        (determined under the Internal Revenue Code as in
6        effect on that date), or (ii) the total gain realized
7        and reportable for federal income tax purposes in
8        respect of the sale, exchange or other disposition of
9        such property.
10            (B) If the fair market value of property referred
11        to in paragraph (1) was not readily ascertainable on
12        August 1, 1969, the pre-August 1, 1969 appreciation
13        amount for such property is that amount which bears the
14        same ratio to the total gain reported in respect of the
15        property for federal income tax purposes for the
16        taxable year, as the number of full calendar months in
17        that part of the taxpayer's holding period for the
18        property ending July 31, 1969 bears to the number of
19        full calendar months in the taxpayer's entire holding
20        period for the property.
21            (C) The Department shall prescribe such
22        regulations as may be necessary to carry out the
23        purposes of this paragraph.
 
24    (g) Double deductions. Unless specifically provided
25otherwise, nothing in this Section shall permit the same item

 

 

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1to be deducted more than once.
 
2    (h) Legislative intention. Except as expressly provided by
3this Section there shall be no modifications or limitations on
4the amounts of income, gain, loss or deduction taken into
5account in determining gross income, adjusted gross income or
6taxable income for federal income tax purposes for the taxable
7year, or in the amount of such items entering into the
8computation of base income and net income under this Act for
9such taxable year, whether in respect of property values as of
10August 1, 1969 or otherwise.
11(Source: P.A. 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; 96-198,
12eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. 8-14-09;
1396-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935, eff.
146-21-10; 96-1214, eff. 7-22-10; 97-333, eff. 8-12-11; 97-507,
15eff. 8-23-11; 97-905, eff. 8-7-12.)
 
16    (35 ILCS 5/204)  (from Ch. 120, par. 2-204)
17    Sec. 204. Standard Exemption.
18    (a) Allowance of exemption. In computing net income under
19this Act, there shall be allowed as an exemption the sum of the
20amounts determined under subsections (b), (c) and (d),
21multiplied by a fraction the numerator of which is the amount
22of the taxpayer's base income allocable to this State for the
23taxable year and the denominator of which is the taxpayer's
24total base income for the taxable year.

 

 

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1    (b) Basic amount. For the purpose of subsection (a) of this
2Section, except as provided by subsection (a) of Section 205
3and in this subsection, each taxpayer shall be allowed a basic
4amount of $1000, except that for corporations the basic amount
5shall be zero for tax years ending on or after December 31,
62003, and for individuals the basic amount shall be:
7        (1) for taxable years ending on or after December 31,
8    1998 and prior to December 31, 1999, $1,300;
9        (2) for taxable years ending on or after December 31,
10    1999 and prior to December 31, 2000, $1,650;
11        (3) for taxable years ending on or after December 31,
12    2000 and prior to December 31, 2012, $2,000;
13        (4) for taxable years ending on or after December 31,
14    2012 and prior to December 31, 2013, $2,050;
15        (5) for taxable years ending on or after December 31,
16    2013, $2,050 plus the cost-of-living adjustment under
17    subsection (d-5).
18For taxable years ending on or after December 31, 1992, a
19taxpayer whose Illinois base income exceeds the basic amount
20and who is claimed as a dependent on another person's tax
21return under the Internal Revenue Code shall not be allowed any
22basic amount under this subsection.
23    (c) Additional amount for individuals. In the case of an
24individual taxpayer, there shall be allowed for the purpose of
25subsection (a), in addition to the basic amount provided by
26subsection (b), an additional exemption equal to the basic

 

 

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1amount for each exemption in excess of one allowable to such
2individual taxpayer for the taxable year under Section 151 of
3the Internal Revenue Code.
4    (d) Additional exemptions for an individual taxpayer and
5his or her spouse. In the case of an individual taxpayer and
6his or her spouse, he or she shall each be allowed additional
7exemptions as follows:
8        (1) Additional exemption for taxpayer or spouse 65
9    years of age or older.
10            (A) For taxpayer. An additional exemption of
11        $1,000 for the taxpayer if he or she has attained the
12        age of 65 before the end of the taxable year.
13            (B) For spouse when a joint return is not filed. An
14        additional exemption of $1,000 for the spouse of the
15        taxpayer if a joint return is not made by the taxpayer
16        and his spouse, and if the spouse has attained the age
17        of 65 before the end of such taxable year, and, for the
18        calendar year in which the taxable year of the taxpayer
19        begins, has no gross income and is not the dependent of
20        another taxpayer.
21        (2) Additional exemption for blindness of taxpayer or
22    spouse.
23            (A) For taxpayer. An additional exemption of
24        $1,000 for the taxpayer if he or she is blind at the
25        end of the taxable year.
26            (B) For spouse when a joint return is not filed. An

 

 

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1        additional exemption of $1,000 for the spouse of the
2        taxpayer if a separate return is made by the taxpayer,
3        and if the spouse is blind and, for the calendar year
4        in which the taxable year of the taxpayer begins, has
5        no gross income and is not the dependent of another
6        taxpayer. For purposes of this paragraph, the
7        determination of whether the spouse is blind shall be
8        made as of the end of the taxable year of the taxpayer;
9        except that if the spouse dies during such taxable year
10        such determination shall be made as of the time of such
11        death.
12            (C) Blindness defined. For purposes of this
13        subsection, an individual is blind only if his or her
14        central visual acuity does not exceed 20/200 in the
15        better eye with correcting lenses, or if his or her
16        visual acuity is greater than 20/200 but is accompanied
17        by a limitation in the fields of vision such that the
18        widest diameter of the visual fields subtends an angle
19        no greater than 20 degrees.
20    (d-5) Cost-of-living adjustment. For purposes of item (5)
21of subsection (b), the cost-of-living adjustment for any
22calendar year and for taxable years ending prior to the end of
23the subsequent calendar year is equal to $2,050 times the
24percentage (if any) by which:
25        (1) the Consumer Price Index for the preceding calendar
26    year, exceeds

 

 

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1        (2) the Consumer Price Index for the calendar year
2    2011.
3    The Consumer Price Index for any calendar year is the
4average of the Consumer Price Index as of the close of the
512-month period ending on August 31 of that calendar year.
6    The term "Consumer Price Index" means the last Consumer
7Price Index for All Urban Consumers published by the United
8States Department of Labor or any successor agency.
9    If any cost-of-living adjustment is not a multiple of $25,
10that adjustment shall be rounded to the next lowest multiple of
11$25.
12    (e) Cross reference. See Article 3 for the manner of
13determining base income allocable to this State.
14    (f) Application of Section 250. Section 250 does not apply
15to the amendments to this Section made by Public Act 90-613.
16    (g) Notwithstanding any other provision of law, for taxable
17years beginning on or after January 1, 2018, no taxpayer may
18claim an exemption under this Section if the taxpayer's
19adjusted gross income for the taxable year exceeds (i)
20$500,000, in the case of spouses filing a joint federal tax
21return or (ii) $250,000, in the case of all other taxpayers.
22(Source: P.A. 97-507, eff. 8-23-11; 97-652, eff. 6-1-12.)
 
23    (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
24    Sec. 208. Tax credit for residential real property taxes.
25Beginning with tax years ending on or after December 31, 1991,

 

 

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1every individual taxpayer shall be entitled to a tax credit
2equal to 5% of real property taxes paid by such taxpayer during
3the taxable year on the principal residence of the taxpayer. In
4the case of multi-unit or multi-use structures and farm
5dwellings, the taxes on the taxpayer's principal residence
6shall be that portion of the total taxes which is attributable
7to such principal residence. Notwithstanding any other
8provision of law, for taxable years beginning on or after
9January 1, 2018, no taxpayer may claim a credit under this
10Section if the taxpayer's adjusted gross income for the taxable
11year exceeds (i) $500,000, in the case of spouses filing a
12joint federal tax return or (ii) $250,000, in the case of all
13other taxpayers.
14(Source: P.A. 87-17.)
 
15    (35 ILCS 5/209)
16    Sec. 209. Tax Credit for "TECH-PREP" youth vocational
17programs.
18    (a) For Beginning with tax years ending on or after June
1930, 1995 and ending prior to December 31, 2017, every taxpayer
20who is primarily engaged in manufacturing is allowed a credit
21against the tax imposed by subsections (a) and (b) of Section
22201 in an amount equal to 20% of the taxpayer's direct payroll
23expenditures for which a credit has not already been claimed
24under subsection (j) of Section 201 of this Act, in the tax
25year for which the credit is claimed, for cooperative secondary

 

 

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1school youth vocational programs in Illinois which are
2certified as qualifying TECH-PREP programs by the State Board
3of Education because the programs prepare students to be
4technically skilled workers and meet the performance standards
5of business and industry and the admission standards of higher
6education. The credit may also be claimed for personal services
7rendered to the taxpayer by a TECH-PREP student or instructor
8(i) which would be subject to the provisions of Article 7 of
9this Act if the student or instructor was an employee of the
10taxpayer and (ii) for which no credit under this Section is
11claimed by another taxpayer.
12    (b) If the amount of the credit exceeds the tax liability
13for the year, the excess may be carried forward and applied to
14the tax liability of the 2 taxable years following the excess
15credit year. The credit shall be applied to the earliest year
16for which there is a tax liability. If there are credits from
17more than one tax year that are available to offset a
18liability, the earlier credit shall be applied first.
19    (c) A taxpayer claiming the credit provided by this Section
20shall maintain and record such information regarding its
21participation in a qualifying TECH-PREP program as the
22Department may require by regulation. When claiming the credit
23provided by this Section, the taxpayer shall provide such
24information regarding the taxpayer's participation in a
25qualifying TECH-PREP program as the Department of Revenue may
26require by regulation.

 

 

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1    (d) This Section does not apply to those programs with
2national standards that have been or in the future are approved
3by the U.S. Department of Labor, Bureau of Apprenticeship
4Training or any federal agency succeeding to the
5responsibilities of that Bureau.
6(Source: P.A. 92-846, eff. 8-23-02.)
 
7    (35 ILCS 5/210)
8    Sec. 210. Dependent care assistance program tax credit.
9    (a) For Beginning with tax years ending on or after June
1030, 1995 and ending prior to December 31, 2017, each taxpayer
11who is primarily engaged in manufacturing is entitled to a
12credit against the tax imposed by subsections (a) and (b) of
13Section 201 in an amount equal to 5% of the amount of
14expenditures by the taxpayer in the tax year for which the
15credit is claimed, reported pursuant to Section 129(d)(7) of
16the Internal Revenue Code, to provide in the Illinois premises
17of the taxpayer's workplace an on-site facility dependent care
18assistance program under Section 129 of the Internal Revenue
19Code.
20    (b) If the amount of credit exceeds the tax liability for
21the year, the excess may be carried forward and applied to the
22tax liability of the 2 taxable years following the excess
23credit year. The credit shall be applied to the earliest year
24for which there is a tax liability. If there are credits from
25more than one tax year that are available to offset a

 

 

10000SB0472sam001- 139 -LRB100 05155 HLH 23971 a

1liability, the earlier credit shall be applied first.
2    (c) A taxpayer claiming the credit provided by this Section
3shall maintain and record such information as the Department
4may require by regulation regarding the dependent care
5assistance program for which credit is claimed. When claiming
6the credit provided by this Section, the taxpayer shall provide
7such information regarding the taxpayer's provision of a
8dependent care assistance program under Section 129 of the
9Internal Revenue Code.
10(Source: P.A. 88-505.)
 
11    (35 ILCS 5/211)
12    Sec. 211. Economic Development for a Growing Economy Tax
13Credit. For tax years beginning on or after January 1, 1999 and
14ending prior to December 31, 2017, a Taxpayer who has entered
15into an Agreement under the Economic Development for a Growing
16Economy Tax Credit Act is entitled to a credit against the
17taxes imposed under subsections (a) and (b) of Section 201 of
18this Act in an amount to be determined in the Agreement. If the
19Taxpayer is a partnership or Subchapter S corporation, the
20credit shall be allowed to the partners or shareholders in
21accordance with the determination of income and distributive
22share of income under Sections 702 and 704 and subchapter S of
23the Internal Revenue Code. The Department, in cooperation with
24the Department of Commerce and Economic Opportunity, shall
25prescribe rules to enforce and administer the provisions of

 

 

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1this Section. This Section is exempt from the provisions of
2Section 250 of this Act.
3    The credit shall be subject to the conditions set forth in
4the Agreement and the following limitations:
5        (1) The tax credit shall not exceed the Incremental
6    Income Tax (as defined in Section 5-5 of the Economic
7    Development for a Growing Economy Tax Credit Act) with
8    respect to the project.
9        (2) The amount of the credit allowed during the tax
10    year plus the sum of all amounts allowed in prior years
11    shall not exceed 100% of the aggregate amount expended by
12    the Taxpayer during all prior tax years on approved costs
13    defined by Agreement.
14        (3) The amount of the credit shall be determined on an
15    annual basis. Except as applied in a carryover year
16    pursuant to Section 211(4) of this Act, the credit may not
17    be applied against any State income tax liability in more
18    than 10 taxable years; provided, however, that (i) an
19    eligible business certified by the Department of Commerce
20    and Economic Opportunity under the Corporate Headquarters
21    Relocation Act may not apply the credit against any of its
22    State income tax liability in more than 15 taxable years
23    and (ii) credits allowed to that eligible business are
24    subject to the conditions and requirements set forth in
25    Sections 5-35 and 5-45 of the Economic Development for a
26    Growing Economy Tax Credit Act.

 

 

10000SB0472sam001- 141 -LRB100 05155 HLH 23971 a

1        (4) The credit may not exceed the amount of taxes
2    imposed pursuant to subsections (a) and (b) of Section 201
3    of this Act. Any credit that is unused in the year the
4    credit is computed may be carried forward and applied to
5    the tax liability of the 5 taxable years following the
6    excess credit year. The credit shall be applied to the
7    earliest year for which there is a tax liability. If there
8    are credits from more than one tax year that are available
9    to offset a liability, the earlier credit shall be applied
10    first.
11        (5) No credit shall be allowed with respect to any
12    Agreement for any taxable year ending after the
13    Noncompliance Date. Upon receiving notification by the
14    Department of Commerce and Economic Opportunity of the
15    noncompliance of a Taxpayer with an Agreement, the
16    Department shall notify the Taxpayer that no credit is
17    allowed with respect to that Agreement for any taxable year
18    ending after the Noncompliance Date, as stated in such
19    notification. If any credit has been allowed with respect
20    to an Agreement for a taxable year ending after the
21    Noncompliance Date for that Agreement, any refund paid to
22    the Taxpayer for that taxable year shall, to the extent of
23    that credit allowed, be an erroneous refund within the
24    meaning of Section 912 of this Act.
25        (6) For purposes of this Section, the terms
26    "Agreement", "Incremental Income Tax", and "Noncompliance

 

 

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1    Date" have the same meaning as when used in the Economic
2    Development for a Growing Economy Tax Credit Act.
3(Source: P.A. 94-793, eff. 5-19-06.)
 
4    (35 ILCS 5/213)
5    Sec. 213. Film production services credit. For tax years
6beginning on or after January 1, 2004 and ending prior to
7December 31, 2017, a taxpayer who has been awarded a tax credit
8under the Film Production Services Tax Credit Act or under the
9Film Production Services Tax Credit Act of 2008 is entitled to
10a credit against the taxes imposed under subsections (a) and
11(b) of Section 201 of this Act in an amount determined by the
12Department of Commerce and Economic Opportunity under those
13Acts. If the taxpayer is a partnership or Subchapter S
14corporation, the credit is allowed to the partners or
15shareholders in accordance with the determination of income and
16distributive share of income under Sections 702 and 704 and
17Subchapter S of the Internal Revenue Code.
18    A transfer of this credit may be made by the taxpayer
19earning the credit within one year after the credit is awarded
20in accordance with rules adopted by the Department of Commerce
21and Economic Opportunity.
22    The Department, in cooperation with the Department of
23Commerce and Economic Opportunity, must prescribe rules to
24enforce and administer the provisions of this Section. This
25Section is exempt from the provisions of Section 250 of this

 

 

10000SB0472sam001- 143 -LRB100 05155 HLH 23971 a

1Act.
2    The credit may not be carried back. If the amount of the
3credit exceeds the tax liability for the year, the excess may
4be carried forward and applied to the tax liability of the 5
5taxable years following the excess credit year. The credit
6shall be applied to the earliest year for which there is a tax
7liability. If there are credits from more than one tax year
8that are available to offset a liability, the earlier credit
9shall be applied first. In no event shall a credit under this
10Section reduce the taxpayer's liability to less than zero.
11(Source: P.A. 94-171, eff. 7-11-05; 95-720, eff. 5-27-08.)
 
12    (35 ILCS 5/214)
13    Sec. 214. Tax credit for affordable housing donations.
14    (a) For Beginning with taxable years ending on or after
15December 31, 2001 and ending prior to December 31, 2017 until
16the taxable year ending on December 31, 2021, a taxpayer who
17makes a donation under Section 7.28 of the Illinois Housing
18Development Act is entitled to a credit against the tax imposed
19by subsections (a) and (b) of Section 201 in an amount equal to
2050% of the value of the donation. Partners, shareholders of
21subchapter S corporations, and owners of limited liability
22companies (if the limited liability company is treated as a
23partnership for purposes of federal and State income taxation)
24are entitled to a credit under this Section to be determined in
25accordance with the determination of income and distributive

 

 

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1share of income under Sections 702 and 703 and subchapter S of
2the Internal Revenue Code. Persons or entities not subject to
3the tax imposed by subsections (a) and (b) of Section 201 and
4who make a donation under Section 7.28 of the Illinois Housing
5Development Act are entitled to a credit as described in this
6subsection and may transfer that credit as described in
7subsection (c).
8    (b) If the amount of the credit exceeds the tax liability
9for the year, the excess may be carried forward and applied to
10the tax liability of the 5 taxable years following the excess
11credit year. The tax credit shall be applied to the earliest
12year for which there is a tax liability. If there are credits
13for more than one year that are available to offset a
14liability, the earlier credit shall be applied first.
15    (c) The transfer of the tax credit allowed under this
16Section may be made (i) to the purchaser of land that has been
17designated solely for affordable housing projects in
18accordance with the Illinois Housing Development Act or (ii) to
19another donor who has also made a donation in accordance with
20Section 7.28 of the Illinois Housing Development Act.
21    (d) A taxpayer claiming the credit provided by this Section
22must maintain and record any information that the Department
23may require by regulation regarding the project for which the
24credit is claimed. When claiming the credit provided by this
25Section, the taxpayer must provide information regarding the
26taxpayer's donation to the project under the Illinois Housing

 

 

10000SB0472sam001- 145 -LRB100 05155 HLH 23971 a

1Development Act.
2(Source: P.A. 99-915, eff. 12-20-16.)
 
3    (35 ILCS 5/216)
4    Sec. 216. Credit for wages paid to ex-felons.
5    (a) For each taxable year beginning on or after January 1,
62007 and ending prior to December 31, 2017, each taxpayer is
7entitled to a credit against the tax imposed by subsections (a)
8and (b) of Section 201 of this Act in an amount equal to 5% of
9qualified wages paid by the taxpayer during the taxable year to
10one or more Illinois residents who are qualified ex-offenders.
11The total credit allowed to a taxpayer with respect to each
12qualified ex-offender may not exceed $1,500 for all taxable
13years. For partners, shareholders of Subchapter S
14corporations, and owners of limited liability companies, if the
15liability company is treated as a partnership for purposes of
16federal and State income taxation, there shall be allowed a
17credit under this Section to be determined in accordance with
18the determination of income and distributive share of income
19under Sections 702 and 704 and Subchapter S of the Internal
20Revenue Code.
21    (b) For purposes of this Section, "qualified wages":
22        (1) includes only wages that are subject to federal
23    unemployment tax under Section 3306 of the Internal Revenue
24    Code, without regard to any dollar limitation contained in
25    that Section;

 

 

10000SB0472sam001- 146 -LRB100 05155 HLH 23971 a

1        (2) does not include any amounts paid or incurred by an
2    employer for any period to any qualified ex-offender for
3    whom the employer receives federally funded payments for
4    on-the-job training of that qualified ex-offender for that
5    period; and
6        (3) includes only wages attributable to service
7    rendered during the one-year period beginning with the day
8    the qualified ex-offender begins work for the employer.
9    If the taxpayer has received any payment from a program
10established under Section 482(e)(1) of the federal Social
11Security Act with respect to a qualified ex-offender, then, for
12purposes of calculating the credit under this Section, the
13amount of the qualified wages paid to that qualified
14ex-offender must be reduced by the amount of the payment.
15    (c) For purposes of this Section, "qualified ex-offender"
16means any person who:
17        (1) has been convicted of a crime in this State or of
18    an offense in any other jurisdiction, not including any
19    offense or attempted offense that would subject a person to
20    registration under the Sex Offender Registration Act;
21        (2) was sentenced to a period of incarceration in an
22    Illinois adult correctional center; and
23        (3) was hired by the taxpayer within 3 years after
24    being released from an Illinois adult correctional center.
25    (d) In no event shall a credit under this Section reduce
26the taxpayer's liability to less than zero. If the amount of

 

 

10000SB0472sam001- 147 -LRB100 05155 HLH 23971 a

1the credit exceeds the tax liability for the year, the excess
2may be carried forward and applied to the tax liability of the
35 taxable years following the excess credit year. The tax
4credit shall be applied to the earliest year for which there is
5a tax liability. If there are credits for more than one year
6that are available to offset a liability, the earlier credit
7shall be applied first.
8    (e) This Section is exempt from the provisions of Section
9250.
10(Source: P.A. 98-165, eff. 8-5-13.)
 
11    (35 ILCS 5/217)
12    Sec. 217. Credit for wages paid to qualified veterans.
13    (a) For each taxable year beginning on or after January 1,
142007 and ending on or before December 30, 2010, each taxpayer
15is entitled to a credit against the tax imposed by subsections
16(a) and (b) of Section 201 of this Act in an amount equal to 5%,
17but in no event to exceed $600, of the gross wages paid by the
18taxpayer to a qualified veteran in the course of that veteran's
19sustained employment during the taxable year. For each taxable
20year beginning on or after January 1, 2010 and ending prior to
21December 31, 2017, each taxpayer is entitled to a credit
22against the tax imposed by subsections (a) and (b) of Section
23201 of this Act in an amount equal to 10%, but in no event to
24exceed $1,200, of the gross wages paid by the taxpayer to a
25qualified veteran in the course of that veteran's sustained

 

 

10000SB0472sam001- 148 -LRB100 05155 HLH 23971 a

1employment during the taxable year. For partners, shareholders
2of Subchapter S corporations, and owners of limited liability
3companies, if the liability company is treated as a partnership
4for purposes of federal and State income taxation, there shall
5be allowed a credit under this Section to be determined in
6accordance with the determination of income and distributive
7share of income under Sections 702 and 704 and Subchapter S of
8the Internal Revenue Code.
9    (b) For purposes of this Section:
10    "Qualified veteran" means an Illinois resident who: (i) was
11a member of the Armed Forces of the United States, a member of
12the Illinois National Guard, or a member of any reserve
13component of the Armed Forces of the United States; (ii) served
14on active duty in connection with Operation Desert Storm,
15Operation Enduring Freedom, or Operation Iraqi Freedom; (iii)
16has provided, to the taxpayer, documentation showing that he or
17she was honorably discharged; and (iv) was initially hired by
18the taxpayer on or after January 1, 2007.
19    "Sustained employment" means a period of employment that is
20not less than 185 days during the taxable year.
21    (c) In no event shall a credit under this Section reduce
22the taxpayer's liability to less than zero. If the amount of
23the credit exceeds the tax liability for the year, the excess
24may be carried forward and applied to the tax liability of the
255 taxable years following the excess credit year. The tax
26credit shall be applied to the earliest year for which there is

 

 

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1a tax liability. If there are credits for more than one year
2that are available to offset a liability, the earlier credit
3shall be applied first.
4    (d) A taxpayer who claims a credit under this Section for a
5taxable year with respect to a veteran shall not be allowed a
6credit under Section 217.1 of this Act with respect to the same
7veteran for that taxable year.
8(Source: P.A. 96-101, eff. 1-1-10; 97-767, eff. 7-9-12.)
 
9    (35 ILCS 5/218)
10    Sec. 218. Credit for student-assistance contributions.
11    (a) For taxable years ending on or after December 31, 2009
12and ending prior to December 31, 2017 on or before December 30,
132020, each taxpayer who, during the taxable year, makes a
14contribution (i) to a specified individual College Savings Pool
15Account under Section 16.5 of the State Treasurer Act or (ii)
16to the Illinois Prepaid Tuition Trust Fund in an amount
17matching a contribution made in the same taxable year by an
18employee of the taxpayer to that Account or Fund is entitled to
19a credit against the tax imposed under subsections (a) and (b)
20of Section 201 in an amount equal to 25% of that matching
21contribution, but not to exceed $500 per contributing employee
22per taxable year.
23    (b) For partners, shareholders of Subchapter S
24corporations, and owners of limited liability companies, if the
25liability company is treated as a partnership for purposes of

 

 

10000SB0472sam001- 150 -LRB100 05155 HLH 23971 a

1federal and State income taxation, there is allowed a credit
2under this Section to be determined in accordance with the
3determination of income and distributive share of income under
4Sections 702 and 704 and Subchapter S of the Internal Revenue
5Code.
6    (c) The credit may not be carried back. If the amount of
7the credit exceeds the tax liability for the year, the excess
8may be carried forward and applied to the tax liability of the
95 taxable years following the excess credit year. The tax
10credit shall be applied to the earliest year for which there is
11a tax liability. If there are credits for more than one year
12that are available to offset a liability, the earlier credit
13shall be applied first.
14    (d) A taxpayer claiming the credit under this Section must
15maintain and record any information that the Illinois Student
16Assistance Commission, the Office of the State Treasurer, or
17the Department may require regarding the matching contribution
18for which the credit is claimed.
19(Source: P.A. 96-198, eff. 8-10-09.)
 
20    (35 ILCS 5/221)
21    Sec. 221. Rehabilitation costs; qualified historic
22properties; River Edge Redevelopment Zone.
23    (a) For taxable years beginning on or after January 1, 2012
24and ending prior to December 31, 2017 January 1, 2018, there
25shall be allowed a tax credit against the tax imposed by

 

 

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1subsections (a) and (b) of Section 201 in an amount equal to
225% of qualified expenditures incurred by a qualified taxpayer
3during the taxable year in the restoration and preservation of
4a qualified historic structure located in a River Edge
5Redevelopment Zone pursuant to a qualified rehabilitation
6plan, provided that the total amount of such expenditures (i)
7must equal $5,000 or more and (ii) must exceed 50% of the
8purchase price of the property.
9    (b) To obtain a tax credit pursuant to this Section, the
10taxpayer must apply with the Department of Commerce and
11Economic Opportunity. The Department of Commerce and Economic
12Opportunity, in consultation with the Historic Preservation
13Agency, shall determine the amount of eligible rehabilitation
14costs and expenses. The Historic Preservation Agency shall
15determine whether the rehabilitation is consistent with the
16standards of the Secretary of the United States Department of
17the Interior for rehabilitation. Upon completion and review of
18the project, the Department of Commerce and Economic
19Opportunity shall issue a certificate in the amount of the
20eligible credits. At the time the certificate is issued, an
21issuance fee up to the maximum amount of 2% of the amount of
22the credits issued by the certificate may be collected from the
23applicant to administer the provisions of this Section. If
24collected, this issuance fee shall be deposited into the
25Historic Property Administrative Fund, a special fund created
26in the State treasury. Subject to appropriation, moneys in the

 

 

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1Historic Property Administrative Fund shall be evenly divided
2between the Department of Commerce and Economic Opportunity and
3the Historic Preservation Agency to reimburse the Department of
4Commerce and Economic Opportunity and the Historic
5Preservation Agency for the costs associated with
6administering this Section. The taxpayer must attach the
7certificate to the tax return on which the credits are to be
8claimed. The Department of Commerce and Economic Opportunity
9may adopt rules to implement this Section.
10    (c) The tax credit under this Section may not reduce the
11taxpayer's liability to less than zero.
12    (d) As used in this Section, the following terms have the
13following meanings.
14    "Qualified expenditure" means all the costs and expenses
15defined as qualified rehabilitation expenditures under Section
1647 of the federal Internal Revenue Code that were incurred in
17connection with a qualified historic structure.
18    "Qualified historic structure" means a certified historic
19structure as defined under Section 47 (c)(3) of the federal
20Internal Revenue Code.
21    "Qualified rehabilitation plan" means a project that is
22approved by the Historic Preservation Agency as being
23consistent with the standards in effect on the effective date
24of this amendatory Act of the 97th General Assembly for
25rehabilitation as adopted by the federal Secretary of the
26Interior.

 

 

10000SB0472sam001- 153 -LRB100 05155 HLH 23971 a

1    "Qualified taxpayer" means the owner of the qualified
2historic structure or any other person who qualifies for the
3federal rehabilitation credit allowed by Section 47 of the
4federal Internal Revenue Code with respect to that qualified
5historic structure. Partners, shareholders of subchapter S
6corporations, and owners of limited liability companies (if the
7limited liability company is treated as a partnership for
8purposes of federal and State income taxation) are entitled to
9a credit under this Section to be determined in accordance with
10the determination of income and distributive share of income
11under Sections 702 and 703 and subchapter S of the Internal
12Revenue Code, provided that credits granted to a partnership, a
13limited liability company taxed as a partnership, or other
14multiple owners of property shall be passed through to the
15partners, members, or owners respectively on a pro rata basis
16or pursuant to an executed agreement among the partners,
17members, or owners documenting any alternate distribution
18method.
19(Source: P.A. 99-914, eff. 12-20-16.)
 
20    (35 ILCS 5/222)
21    Sec. 222. Live theater production credit.
22    (a) For tax years beginning on or after January 1, 2012 and
23ending prior to December 31, 2017, a taxpayer who has received
24a tax credit award under the Live Theater Production Tax Credit
25Act is entitled to a credit against the taxes imposed under

 

 

10000SB0472sam001- 154 -LRB100 05155 HLH 23971 a

1subsections (a) and (b) of Section 201 of this Act in an amount
2determined under that Act by the Department of Commerce and
3Economic Opportunity.
4    (b) If the taxpayer is a partnership, limited liability
5partnership, limited liability company, or Subchapter S
6corporation, the tax credit award is allowed to the partners,
7unit holders, or shareholders in accordance with the
8determination of income and distributive share of income under
9Sections 702 and 704 and Subchapter S of the Internal Revenue
10Code.
11    (c) A sale, assignment, or transfer of the tax credit award
12may be made by the taxpayer earning the credit within one year
13after the credit is awarded in accordance with rules adopted by
14the Department of Commerce and Economic Opportunity.
15    (d) The Department of Revenue, in cooperation with the
16Department of Commerce and Economic Opportunity, shall adopt
17rules to enforce and administer the provisions of this Section.
18    (e) The tax credit award may not be carried back. If the
19amount of the credit exceeds the tax liability for the year,
20the excess may be carried forward and applied to the tax
21liability of the 5 tax years following the excess credit year.
22The tax credit award shall be applied to the earliest year for
23which there is a tax liability. If there are credits from more
24than one tax year that are available to offset liability, the
25earlier credit shall be applied first. In no event may a credit
26under this Section reduce the taxpayer's liability to less than

 

 

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1zero.
2(Source: P.A. 97-636, eff. 6-1-12.)
 
3    (35 ILCS 5/223)
4    Sec. 223. Hospital credit.
5    (a) For tax years ending on or after December 31, 2012 and
6ending prior to December 31, 2017, a taxpayer that is the owner
7of a hospital licensed under the Hospital Licensing Act, but
8not including an organization that is exempt from federal
9income taxes under the Internal Revenue Code, is entitled to a
10credit against the taxes imposed under subsections (a) and (b)
11of Section 201 of this Act in an amount equal to the lesser of
12the amount of real property taxes paid during the tax year on
13real property used for hospital purposes during the prior tax
14year or the cost of free or discounted services provided during
15the tax year pursuant to the hospital's charitable financial
16assistance policy, measured at cost.
17    (b) If the taxpayer is a partnership or Subchapter S
18corporation, the credit is allowed to the partners or
19shareholders in accordance with the determination of income and
20distributive share of income under Sections 702 and 704 and
21Subchapter S of the Internal Revenue Code. A transfer of this
22credit may be made by the taxpayer earning the credit within
23one year after the credit is earned in accordance with rules
24adopted by the Department. The Department shall prescribe rules
25to enforce and administer provisions of this Section. If the

 

 

10000SB0472sam001- 156 -LRB100 05155 HLH 23971 a

1amount of the credit exceeds the tax liability for the year,
2then the excess credit may be carried forward and applied to
3the tax liability of the 5 taxable years following the excess
4credit year. The credit shall be applied to the earliest year
5for which there is a tax liability. If there are credits from
6more than one tax year that are available to offset a
7liability, the earlier credit shall be applied first. In no
8event shall a credit under this Section reduce the taxpayer's
9liability to less than zero.
10(Source: P.A. 97-688, eff. 6-14-12.)
 
11    Section 15. The Film Production Services Tax Credit Act of
122008 is amended by changing Section 42 as follows:
 
13    (35 ILCS 16/42)
14    Sec. 42. Sunset of credits. The application of credits
15awarded pursuant to this Act shall be limited by a reasonable
16and appropriate sunset date. A taxpayer shall not be entitled
17to take a credit awarded pursuant to this Act for tax years
18ending on or after December 31, 2017 beginning on or after 10
19years after the effective date of this amendatory Act of the
2097th General Assembly. After the initial 10-year sunset, the
21General Assembly may extend the sunset date by 5-year
22intervals.
23(Source: P.A. 97-2, eff. 5-6-11; 97-3, eff. 5-6-11.)
 

 

 

10000SB0472sam001- 157 -LRB100 05155 HLH 23971 a

1    Section 20. The Live Theater Production Tax Credit Act is
2amended by adding Section 10-60 as follows:
 
3    (35 ILCS 17/10-60 new)
4    Sec. 10-60. Sunset. A taxpayer shall not be entitled to
5take a credit awarded pursuant to this Act for tax years ending
6on or after December 31, 2017.
 
7    Section 25. The Use Tax Act is amended by changing Sections
83-5, 3-10, and 9 as follows:
 
9    (35 ILCS 105/3-5)
10    Sec. 3-5. Exemptions. Use of the following tangible
11personal property is exempt from the tax imposed by this Act:
12    (1) Personal property purchased from a corporation,
13society, association, foundation, institution, or
14organization, other than a limited liability company, that is
15organized and operated as a not-for-profit service enterprise
16for the benefit of persons 65 years of age or older if the
17personal property was not purchased by the enterprise for the
18purpose of resale by the enterprise.
19    (2) Personal property purchased by a not-for-profit
20Illinois county fair association for use in conducting,
21operating, or promoting the county fair.
22    (3) Personal property purchased by a not-for-profit arts or
23cultural organization that establishes, by proof required by

 

 

10000SB0472sam001- 158 -LRB100 05155 HLH 23971 a

1the Department by rule, that it has received an exemption under
2Section 501(c)(3) of the Internal Revenue Code and that is
3organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after the effective date
10of this amendatory Act of the 92nd General Assembly, however,
11an entity otherwise eligible for this exemption shall not make
12tax-free purchases unless it has an active identification
13number issued by the Department.
14    (4) Personal property purchased by a governmental body, by
15a corporation, society, association, foundation, or
16institution organized and operated exclusively for charitable,
17religious, or educational purposes, or by a not-for-profit
18corporation, society, association, foundation, institution, or
19organization that has no compensated officers or employees and
20that is organized and operated primarily for the recreation of
21persons 55 years of age or older. A limited liability company
22may qualify for the exemption under this paragraph only if the
23limited liability company is organized and operated
24exclusively for educational purposes. On and after July 1,
251987, however, no entity otherwise eligible for this exemption
26shall make tax-free purchases unless it has an active exemption

 

 

10000SB0472sam001- 159 -LRB100 05155 HLH 23971 a

1identification number issued by the Department.
2    (5) Until July 1, 2003, a passenger car that is a
3replacement vehicle to the extent that the purchase price of
4the car is subject to the Replacement Vehicle Tax.
5    (6) Until July 1, 2003 and beginning again on September 1,
62004 through August 30, 2014, graphic arts machinery and
7equipment, including repair and replacement parts, both new and
8used, and including that manufactured on special order,
9certified by the purchaser to be used primarily for graphic
10arts production, and including machinery and equipment
11purchased for lease. Equipment includes chemicals or chemicals
12acting as catalysts but only if the chemicals or chemicals
13acting as catalysts effect a direct and immediate change upon a
14graphic arts product.
15    (7) Until July 1, 2017, farm Farm chemicals. With respect
16to farm chemicals, on and after July 1, 2017, the tax under
17this Act shall be imposed at the rate of 6.25%, but shall be
18imposed on only 50% of the proceeds of sales. This item (7) is
19exempt from the provisions of Section 3-90.
20    (8) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24    (9) Personal property purchased from a teacher-sponsored
25student organization affiliated with an elementary or
26secondary school located in Illinois.

 

 

10000SB0472sam001- 160 -LRB100 05155 HLH 23971 a

1    (10) Until July 1, 2017, a A motor vehicle that is used for
2automobile renting, as defined in the Automobile Renting
3Occupation and Use Tax Act. With respect to motor vehicles that
4are used for automobile renting, as defined in the Automobile
5Renting Occupation and Use Tax Act, on and after July 1, 2017,
6the tax under this Act shall be imposed at the rate of 6.25%,
7but shall be imposed on only 50% of the proceeds of sales. This
8item (10) is exempt from the provisions of Section 3-90.
9    (11) Until July 1, 2017, farm Farm machinery and equipment,
10both new and used, including that manufactured on special
11order, certified by the purchaser to be used primarily for
12production agriculture or State or federal agricultural
13programs, including individual replacement parts for the
14machinery and equipment, including machinery and equipment
15purchased for lease, and including implements of husbandry
16defined in Section 1-130 of the Illinois Vehicle Code, farm
17machinery and agricultural chemical and fertilizer spreaders,
18and nurse wagons required to be registered under Section 3-809
19of the Illinois Vehicle Code, but excluding other motor
20vehicles required to be registered under the Illinois Vehicle
21Code. Horticultural polyhouses or hoop houses used for
22propagating, growing, or overwintering plants shall be
23considered farm machinery and equipment under this item (11).
24Agricultural chemical tender tanks and dry boxes shall include
25units sold separately from a motor vehicle required to be
26licensed and units sold mounted on a motor vehicle required to

 

 

10000SB0472sam001- 161 -LRB100 05155 HLH 23971 a

1be licensed if the selling price of the tender is separately
2stated. With respect to farm machinery and equipment, on and
3after July 1, 2017, the tax under this Act shall be imposed at
4the rate of 6.25%, but shall be imposed on only 50% of the
5proceeds of sales.
6    Farm machinery and equipment shall include precision
7farming equipment that is installed or purchased to be
8installed on farm machinery and equipment including, but not
9limited to, tractors, harvesters, sprayers, planters, seeders,
10or spreaders. Precision farming equipment includes, but is not
11limited to, soil testing sensors, computers, monitors,
12software, global positioning and mapping systems, and other
13such equipment.
14    Farm machinery and equipment also includes computers,
15sensors, software, and related equipment used primarily in the
16computer-assisted operation of production agriculture
17facilities, equipment, and activities such as, but not limited
18to, the collection, monitoring, and correlation of animal and
19crop data for the purpose of formulating animal diets and
20agricultural chemicals. This item (11) is exempt from the
21provisions of Section 3-90.
22    (12) Until June 30, 2013, fuel and petroleum products sold
23to or used by an air common carrier, certified by the carrier
24to be used for consumption, shipment, or storage in the conduct
25of its business as an air common carrier, for a flight destined
26for or returning from a location or locations outside the

 

 

10000SB0472sam001- 162 -LRB100 05155 HLH 23971 a

1United States without regard to previous or subsequent domestic
2stopovers.
3    Beginning July 1, 2013, fuel and petroleum products sold to
4or used by an air carrier, certified by the carrier to be used
5for consumption, shipment, or storage in the conduct of its
6business as an air common carrier, for a flight that (i) is
7engaged in foreign trade or is engaged in trade between the
8United States and any of its possessions and (ii) transports at
9least one individual or package for hire from the city of
10origination to the city of final destination on the same
11aircraft, without regard to a change in the flight number of
12that aircraft.
13    (13) Proceeds of mandatory service charges separately
14stated on customers' bills for the purchase and consumption of
15food and beverages purchased at retail from a retailer, to the
16extent that the proceeds of the service charge are in fact
17turned over as tips or as a substitute for tips to the
18employees who participate directly in preparing, serving,
19hosting or cleaning up the food or beverage function with
20respect to which the service charge is imposed.
21    (14) Until July 1, 2003, oil field exploration, drilling,
22and production equipment, including (i) rigs and parts of rigs,
23rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
24tubular goods, including casing and drill strings, (iii) pumps
25and pump-jack units, (iv) storage tanks and flow lines, (v) any
26individual replacement part for oil field exploration,

 

 

10000SB0472sam001- 163 -LRB100 05155 HLH 23971 a

1drilling, and production equipment, and (vi) machinery and
2equipment purchased for lease; but excluding motor vehicles
3required to be registered under the Illinois Vehicle Code.
4    (15) Photoprocessing machinery and equipment, including
5repair and replacement parts, both new and used, including that
6manufactured on special order, certified by the purchaser to be
7used primarily for photoprocessing, and including
8photoprocessing machinery and equipment purchased for lease.
9    (16) Coal and aggregate exploration, mining, off-highway
10hauling, processing, maintenance, and reclamation equipment,
11including replacement parts and equipment, and including
12equipment purchased for lease, but excluding motor vehicles
13required to be registered under the Illinois Vehicle Code. The
14changes made to this Section by Public Act 97-767 apply on and
15after July 1, 2003, but no claim for credit or refund is
16allowed on or after August 16, 2013 (the effective date of
17Public Act 98-456) for such taxes paid during the period
18beginning July 1, 2003 and ending on August 16, 2013 (the
19effective date of Public Act 98-456).
20    (17) Until July 1, 2003, distillation machinery and
21equipment, sold as a unit or kit, assembled or installed by the
22retailer, certified by the user to be used only for the
23production of ethyl alcohol that will be used for consumption
24as motor fuel or as a component of motor fuel for the personal
25use of the user, and not subject to sale or resale.
26    (18) Until July 1, 2017, manufacturing Manufacturing and

 

 

10000SB0472sam001- 164 -LRB100 05155 HLH 23971 a

1assembling machinery and equipment used primarily in the
2process of manufacturing or assembling tangible personal
3property for wholesale or retail sale or lease, whether that
4sale or lease is made directly by the manufacturer or by some
5other person, whether the materials used in the process are
6owned by the manufacturer or some other person, or whether that
7sale or lease is made apart from or as an incident to the
8seller's engaging in the service occupation of producing
9machines, tools, dies, jigs, patterns, gauges, or other similar
10items of no commercial value on special order for a particular
11purchaser. The exemption provided by this paragraph (18) does
12not include machinery and equipment used in (i) the generation
13of electricity for wholesale or retail sale; (ii) the
14generation or treatment of natural or artificial gas for
15wholesale or retail sale that is delivered to customers through
16pipes, pipelines, or mains; or (iii) the treatment of water for
17wholesale or retail sale that is delivered to customers through
18pipes, pipelines, or mains. The provisions of Public Act 98-583
19are declaratory of existing law as to the meaning and scope of
20this exemption.
21    With respect to manufacturing and assembling machinery and
22equipment under this paragraph (18), on and after July 1, 2017,
23the tax under this Act shall be imposed at the rate of 6.25%,
24but shall be imposed on only 50% of the proceeds of sales.
25    (19) Personal property delivered to a purchaser or
26purchaser's donee inside Illinois when the purchase order for

 

 

10000SB0472sam001- 165 -LRB100 05155 HLH 23971 a

1that personal property was received by a florist located
2outside Illinois who has a florist located inside Illinois
3deliver the personal property.
4    (20) Semen used for artificial insemination of livestock
5for direct agricultural production.
6    (21) Horses, or interests in horses, registered with and
7meeting the requirements of any of the Arabian Horse Club
8Registry of America, Appaloosa Horse Club, American Quarter
9Horse Association, United States Trotting Association, or
10Jockey Club, as appropriate, used for purposes of breeding or
11racing for prizes. This item (21) is exempt from the provisions
12of Section 3-90, and the exemption provided for under this item
13(21) applies for all periods beginning May 30, 1995, but no
14claim for credit or refund is allowed on or after January 1,
152008 for such taxes paid during the period beginning May 30,
162000 and ending on January 1, 2008.
17    (22) Computers and communications equipment utilized for
18any hospital purpose and equipment used in the diagnosis,
19analysis, or treatment of hospital patients purchased by a
20lessor who leases the equipment, under a lease of one year or
21longer executed or in effect at the time the lessor would
22otherwise be subject to the tax imposed by this Act, to a
23hospital that has been issued an active tax exemption
24identification number by the Department under Section 1g of the
25Retailers' Occupation Tax Act. If the equipment is leased in a
26manner that does not qualify for this exemption or is used in

 

 

10000SB0472sam001- 166 -LRB100 05155 HLH 23971 a

1any other non-exempt manner, the lessor shall be liable for the
2tax imposed under this Act or the Service Use Tax Act, as the
3case may be, based on the fair market value of the property at
4the time the non-qualifying use occurs. No lessor shall collect
5or attempt to collect an amount (however designated) that
6purports to reimburse that lessor for the tax imposed by this
7Act or the Service Use Tax Act, as the case may be, if the tax
8has not been paid by the lessor. If a lessor improperly
9collects any such amount from the lessee, the lessee shall have
10a legal right to claim a refund of that amount from the lessor.
11If, however, that amount is not refunded to the lessee for any
12reason, the lessor is liable to pay that amount to the
13Department.
14    (23) Personal property purchased by a lessor who leases the
15property, under a lease of one year or longer executed or in
16effect at the time the lessor would otherwise be subject to the
17tax imposed by this Act, to a governmental body that has been
18issued an active sales tax exemption identification number by
19the Department under Section 1g of the Retailers' Occupation
20Tax Act. If the property is leased in a manner that does not
21qualify for this exemption or used in any other non-exempt
22manner, the lessor shall be liable for the tax imposed under
23this Act or the Service Use Tax Act, as the case may be, based
24on the fair market value of the property at the time the
25non-qualifying use occurs. No lessor shall collect or attempt
26to collect an amount (however designated) that purports to

 

 

10000SB0472sam001- 167 -LRB100 05155 HLH 23971 a

1reimburse that lessor for the tax imposed by this Act or the
2Service Use Tax Act, as the case may be, if the tax has not been
3paid by the lessor. If a lessor improperly collects any such
4amount from the lessee, the lessee shall have a legal right to
5claim a refund of that amount from the lessor. If, however,
6that amount is not refunded to the lessee for any reason, the
7lessor is liable to pay that amount to the Department.
8    (24) Beginning with taxable years ending on or after
9December 31, 1995 and ending with taxable years ending on or
10before December 31, 2004, personal property that is donated for
11disaster relief to be used in a State or federally declared
12disaster area in Illinois or bordering Illinois by a
13manufacturer or retailer that is registered in this State to a
14corporation, society, association, foundation, or institution
15that has been issued a sales tax exemption identification
16number by the Department that assists victims of the disaster
17who reside within the declared disaster area.
18    (25) Beginning with taxable years ending on or after
19December 31, 1995 and ending with taxable years ending on or
20before December 31, 2004, personal property that is used in the
21performance of infrastructure repairs in this State, including
22but not limited to municipal roads and streets, access roads,
23bridges, sidewalks, waste disposal systems, water and sewer
24line extensions, water distribution and purification
25facilities, storm water drainage and retention facilities, and
26sewage treatment facilities, resulting from a State or

 

 

10000SB0472sam001- 168 -LRB100 05155 HLH 23971 a

1federally declared disaster in Illinois or bordering Illinois
2when such repairs are initiated on facilities located in the
3declared disaster area within 6 months after the disaster.
4    (26) Beginning July 1, 1999, game or game birds purchased
5at a "game breeding and hunting preserve area" as that term is
6used in the Wildlife Code. This paragraph is exempt from the
7provisions of Section 3-90.
8    (27) A motor vehicle, as that term is defined in Section
91-146 of the Illinois Vehicle Code, that is donated to a
10corporation, limited liability company, society, association,
11foundation, or institution that is determined by the Department
12to be organized and operated exclusively for educational
13purposes. For purposes of this exemption, "a corporation,
14limited liability company, society, association, foundation,
15or institution organized and operated exclusively for
16educational purposes" means all tax-supported public schools,
17private schools that offer systematic instruction in useful
18branches of learning by methods common to public schools and
19that compare favorably in their scope and intensity with the
20course of study presented in tax-supported schools, and
21vocational or technical schools or institutes organized and
22operated exclusively to provide a course of study of not less
23than 6 weeks duration and designed to prepare individuals to
24follow a trade or to pursue a manual, technical, mechanical,
25industrial, business, or commercial occupation.
26    (28) Beginning January 1, 2000, personal property,

 

 

10000SB0472sam001- 169 -LRB100 05155 HLH 23971 a

1including food, purchased through fundraising events for the
2benefit of a public or private elementary or secondary school,
3a group of those schools, or one or more school districts if
4the events are sponsored by an entity recognized by the school
5district that consists primarily of volunteers and includes
6parents and teachers of the school children. This paragraph
7does not apply to fundraising events (i) for the benefit of
8private home instruction or (ii) for which the fundraising
9entity purchases the personal property sold at the events from
10another individual or entity that sold the property for the
11purpose of resale by the fundraising entity and that profits
12from the sale to the fundraising entity. This paragraph is
13exempt from the provisions of Section 3-90.
14    (29) Beginning January 1, 2000 and through December 31,
152001, new or used automatic vending machines that prepare and
16serve hot food and beverages, including coffee, soup, and other
17items, and replacement parts for these machines. Beginning
18January 1, 2002 and through June 30, 2003, machines and parts
19for machines used in commercial, coin-operated amusement and
20vending business if a use or occupation tax is paid on the
21gross receipts derived from the use of the commercial,
22coin-operated amusement and vending machines. This paragraph
23is exempt from the provisions of Section 3-90.
24    (30) Beginning January 1, 2001 and through June 30, 2016,
25food for human consumption that is to be consumed off the
26premises where it is sold (other than alcoholic beverages, soft

 

 

10000SB0472sam001- 170 -LRB100 05155 HLH 23971 a

1drinks, and food that has been prepared for immediate
2consumption) and prescription and nonprescription medicines,
3drugs, medical appliances, and insulin, urine testing
4materials, syringes, and needles used by diabetics, for human
5use, when purchased for use by a person receiving medical
6assistance under Article V of the Illinois Public Aid Code who
7resides in a licensed long-term care facility, as defined in
8the Nursing Home Care Act, or in a licensed facility as defined
9in the ID/DD Community Care Act, the MC/DD Act, or the
10Specialized Mental Health Rehabilitation Act of 2013.
11    (31) Beginning on the effective date of this amendatory Act
12of the 92nd General Assembly, computers and communications
13equipment utilized for any hospital purpose and equipment used
14in the diagnosis, analysis, or treatment of hospital patients
15purchased by a lessor who leases the equipment, under a lease
16of one year or longer executed or in effect at the time the
17lessor would otherwise be subject to the tax imposed by this
18Act, to a hospital that has been issued an active tax exemption
19identification number by the Department under Section 1g of the
20Retailers' Occupation Tax Act. If the equipment is leased in a
21manner that does not qualify for this exemption or is used in
22any other nonexempt manner, the lessor shall be liable for the
23tax imposed under this Act or the Service Use Tax Act, as the
24case may be, based on the fair market value of the property at
25the time the nonqualifying use occurs. No lessor shall collect
26or attempt to collect an amount (however designated) that

 

 

10000SB0472sam001- 171 -LRB100 05155 HLH 23971 a

1purports to reimburse that lessor for the tax imposed by this
2Act or the Service Use Tax Act, as the case may be, if the tax
3has not been paid by the lessor. If a lessor improperly
4collects any such amount from the lessee, the lessee shall have
5a legal right to claim a refund of that amount from the lessor.
6If, however, that amount is not refunded to the lessee for any
7reason, the lessor is liable to pay that amount to the
8Department. This paragraph is exempt from the provisions of
9Section 3-90.
10    (32) Beginning on the effective date of this amendatory Act
11of the 92nd General Assembly, personal property purchased by a
12lessor who leases the property, under a lease of one year or
13longer executed or in effect at the time the lessor would
14otherwise be subject to the tax imposed by this Act, to a
15governmental body that has been issued an active sales tax
16exemption identification number by the Department under
17Section 1g of the Retailers' Occupation Tax Act. If the
18property is leased in a manner that does not qualify for this
19exemption or used in any other nonexempt manner, the lessor
20shall be liable for the tax imposed under this Act or the
21Service Use Tax Act, as the case may be, based on the fair
22market value of the property at the time the nonqualifying use
23occurs. No lessor shall collect or attempt to collect an amount
24(however designated) that purports to reimburse that lessor for
25the tax imposed by this Act or the Service Use Tax Act, as the
26case may be, if the tax has not been paid by the lessor. If a

 

 

10000SB0472sam001- 172 -LRB100 05155 HLH 23971 a

1lessor improperly collects any such amount from the lessee, the
2lessee shall have a legal right to claim a refund of that
3amount from the lessor. If, however, that amount is not
4refunded to the lessee for any reason, the lessor is liable to
5pay that amount to the Department. This paragraph is exempt
6from the provisions of Section 3-90.
7    (33) On and after July 1, 2003 and through June 30, 2004,
8the use in this State of motor vehicles of the second division
9with a gross vehicle weight in excess of 8,000 pounds and that
10are subject to the commercial distribution fee imposed under
11Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
121, 2004 and through June 30, 2005, the use in this State of
13motor vehicles of the second division: (i) with a gross vehicle
14weight rating in excess of 8,000 pounds; (ii) that are subject
15to the commercial distribution fee imposed under Section
163-815.1 of the Illinois Vehicle Code; and (iii) that are
17primarily used for commercial purposes. Through June 30, 2005,
18this exemption applies to repair and replacement parts added
19after the initial purchase of such a motor vehicle if that
20motor vehicle is used in a manner that would qualify for the
21rolling stock exemption otherwise provided for in this Act. For
22purposes of this paragraph, the term "used for commercial
23purposes" means the transportation of persons or property in
24furtherance of any commercial or industrial enterprise,
25whether for-hire or not.
26    (34) Beginning January 1, 2008, tangible personal property

 

 

10000SB0472sam001- 173 -LRB100 05155 HLH 23971 a

1used in the construction or maintenance of a community water
2supply, as defined under Section 3.145 of the Environmental
3Protection Act, that is operated by a not-for-profit
4corporation that holds a valid water supply permit issued under
5Title IV of the Environmental Protection Act. This paragraph is
6exempt from the provisions of Section 3-90.
7    (35) Beginning January 1, 2010, materials, parts,
8equipment, components, and furnishings incorporated into or
9upon an aircraft as part of the modification, refurbishment,
10completion, replacement, repair, or maintenance of the
11aircraft. This exemption includes consumable supplies used in
12the modification, refurbishment, completion, replacement,
13repair, and maintenance of aircraft, but excludes any
14materials, parts, equipment, components, and consumable
15supplies used in the modification, replacement, repair, and
16maintenance of aircraft engines or power plants, whether such
17engines or power plants are installed or uninstalled upon any
18such aircraft. "Consumable supplies" include, but are not
19limited to, adhesive, tape, sandpaper, general purpose
20lubricants, cleaning solution, latex gloves, and protective
21films. This exemption applies only to the use of qualifying
22tangible personal property by persons who modify, refurbish,
23complete, repair, replace, or maintain aircraft and who (i)
24hold an Air Agency Certificate and are empowered to operate an
25approved repair station by the Federal Aviation
26Administration, (ii) have a Class IV Rating, and (iii) conduct

 

 

10000SB0472sam001- 174 -LRB100 05155 HLH 23971 a

1operations in accordance with Part 145 of the Federal Aviation
2Regulations. The exemption does not include aircraft operated
3by a commercial air carrier providing scheduled passenger air
4service pursuant to authority issued under Part 121 or Part 129
5of the Federal Aviation Regulations. The changes made to this
6paragraph (35) by Public Act 98-534 are declarative of existing
7law.
8    (36) Tangible personal property purchased by a
9public-facilities corporation, as described in Section
1011-65-10 of the Illinois Municipal Code, for purposes of
11constructing or furnishing a municipal convention hall, but
12only if the legal title to the municipal convention hall is
13transferred to the municipality without any further
14consideration by or on behalf of the municipality at the time
15of the completion of the municipal convention hall or upon the
16retirement or redemption of any bonds or other debt instruments
17issued by the public-facilities corporation in connection with
18the development of the municipal convention hall. This
19exemption includes existing public-facilities corporations as
20provided in Section 11-65-25 of the Illinois Municipal Code.
21This paragraph is exempt from the provisions of Section 3-90.
22    (37) Beginning January 1, 2017, menstrual pads, tampons,
23and menstrual cups.
24(Source: P.A. 98-104, eff. 7-22-13; 98-422, eff. 8-16-13;
2598-456, eff. 8-16-13; 98-534, eff. 8-23-13; 98-574, eff.
261-1-14; 98-583, eff. 1-1-14; 98-756, eff. 7-16-14; 99-180, eff.

 

 

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17-29-15; 99-855, eff. 8-19-16.)
 
2    (35 ILCS 105/3-10)
3    Sec. 3-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5either the selling price or the fair market value, if any, of
6the tangible personal property. In all cases where property
7functionally used or consumed is the same as the property that
8was purchased at retail, then the tax is imposed on the selling
9price of the property. In all cases where property functionally
10used or consumed is a by-product or waste product that has been
11refined, manufactured, or produced from property purchased at
12retail, then the tax is imposed on the lower of the fair market
13value, if any, of the specific property so used in this State
14or on the selling price of the property purchased at retail.
15For purposes of this Section "fair market value" means the
16price at which property would change hands between a willing
17buyer and a willing seller, neither being under any compulsion
18to buy or sell and both having reasonable knowledge of the
19relevant facts. The fair market value shall be established by
20Illinois sales by the taxpayer of the same property as that
21functionally used or consumed, or if there are no such sales by
22the taxpayer, then comparable sales or purchases of property of
23like kind and character in Illinois.
24    Beginning on July 1, 2000 and through December 31, 2000,
25with respect to motor fuel, as defined in Section 1.1 of the

 

 

10000SB0472sam001- 176 -LRB100 05155 HLH 23971 a

1Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2the Use Tax Act, the tax is imposed at the rate of 1.25%.
3    Beginning on August 6, 2010 through August 15, 2010, with
4respect to sales tax holiday items as defined in Section 3-6 of
5this Act, the tax is imposed at the rate of 1.25%.
6    With respect to gasohol, the tax imposed by this Act
7applies to (i) 70% of the proceeds of sales made on or after
8January 1, 1990, and before July 1, 2003, (ii) 80% of the
9proceeds of sales made on or after July 1, 2003 and on or
10before July 1, 2017, (iii) 90% of the proceeds of sales made on
11or after July 1, 2017 and on or before December 31, 2018, and
12(iv) (iii) 100% of the proceeds of sales made thereafter. If,
13at any time, however, the tax under this Act on sales of
14gasohol is imposed at the rate of 1.25%, then the tax imposed
15by this Act applies to 100% of the proceeds of sales of gasohol
16made during that time.
17    With respect to majority blended ethanol fuel, the tax
18imposed by this Act does not apply to the proceeds of sales
19made on or after July 1, 2003 and on or before December 31,
202018 but applies to 100% of the proceeds of sales made
21thereafter.
22    With respect to biodiesel blends with no less than 1% and
23no more than 10% biodiesel, the tax imposed by this Act applies
24to (i) 80% of the proceeds of sales made on or after July 1,
252003 and on or before July 1, 2017, (ii) 90% of the proceeds of
26sales made on or after July 1, 2017 and on or before December

 

 

10000SB0472sam001- 177 -LRB100 05155 HLH 23971 a

131, 2018, and (iii) (ii) 100% of the proceeds of sales made
2thereafter. If, at any time, however, the tax under this Act on
3sales of biodiesel blends with no less than 1% and no more than
410% biodiesel is imposed at the rate of 1.25%, then the tax
5imposed by this Act applies to 100% of the proceeds of sales of
6biodiesel blends with no less than 1% and no more than 10%
7biodiesel made during that time.
8    With respect to 100% biodiesel and biodiesel blends with
9more than 10% but no more than 99% biodiesel, the tax imposed
10by this Act (i) does not apply to the proceeds of sales made on
11or after July 1, 2003 and on or before July 1, 2017, (ii)
12applies to 50% of the proceeds of sales made on or after July
131, 2017 and on or before December 31, 2018, and (iii) but
14applies to 100% of the proceeds of sales made thereafter.
15    With respect to food for human consumption that is to be
16consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, products
20classified as Class III medical devices by the United States
21Food and Drug Administration that are used for cancer treatment
22pursuant to a prescription, as well as any accessories and
23components related to those devices, modifications to a motor
24vehicle for the purpose of rendering it usable by a person with
25a disability, and insulin, urine testing materials, syringes,
26and needles used by diabetics, for human use, the tax is

 

 

10000SB0472sam001- 178 -LRB100 05155 HLH 23971 a

1imposed at the rate of (i) 1% prior to July 1, 2017 and (ii)
23.625% on and after July 1, 2017. For the purposes of this
3Section, until September 1, 2009: the term "soft drinks" means
4any complete, finished, ready-to-use, non-alcoholic drink,
5whether carbonated or not, including but not limited to soda
6water, cola, fruit juice, vegetable juice, carbonated water,
7and all other preparations commonly known as soft drinks of
8whatever kind or description that are contained in any closed
9or sealed bottle, can, carton, or container, regardless of
10size; but "soft drinks" does not include coffee, tea,
11non-carbonated water, infant formula, milk or milk products as
12defined in the Grade A Pasteurized Milk and Milk Products Act,
13or drinks containing 50% or more natural fruit or vegetable
14juice.
15    Notwithstanding any other provisions of this Act,
16beginning September 1, 2009, "soft drinks" means non-alcoholic
17beverages that contain natural or artificial sweeteners. "Soft
18drinks" do not include beverages that contain milk or milk
19products, soy, rice or similar milk substitutes, or greater
20than 50% of vegetable or fruit juice by volume.
21    Until August 1, 2009, and notwithstanding any other
22provisions of this Act, "food for human consumption that is to
23be consumed off the premises where it is sold" includes all
24food sold through a vending machine, except soft drinks and
25food products that are dispensed hot from a vending machine,
26regardless of the location of the vending machine. Beginning

 

 

10000SB0472sam001- 179 -LRB100 05155 HLH 23971 a

1August 1, 2009, and notwithstanding any other provisions of
2this Act, "food for human consumption that is to be consumed
3off the premises where it is sold" includes all food sold
4through a vending machine, except soft drinks, candy, and food
5products that are dispensed hot from a vending machine,
6regardless of the location of the vending machine.
7    Notwithstanding any other provisions of this Act,
8beginning September 1, 2009, "food for human consumption that
9is to be consumed off the premises where it is sold" does not
10include candy. For purposes of this Section, "candy" means a
11preparation of sugar, honey, or other natural or artificial
12sweeteners in combination with chocolate, fruits, nuts or other
13ingredients or flavorings in the form of bars, drops, or
14pieces. "Candy" does not include any preparation that contains
15flour or requires refrigeration.
16    Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "nonprescription medicines and
18drugs" does not include grooming and hygiene products. For
19purposes of this Section, "grooming and hygiene products"
20includes, but is not limited to, soaps and cleaning solutions,
21shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
22lotions and screens, unless those products are available by
23prescription only, regardless of whether the products meet the
24definition of "over-the-counter-drugs". For the purposes of
25this paragraph, "over-the-counter-drug" means a drug for human
26use that contains a label that identifies the product as a drug

 

 

10000SB0472sam001- 180 -LRB100 05155 HLH 23971 a

1as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
2label includes:
3        (A) A "Drug Facts" panel; or
4        (B) A statement of the "active ingredient(s)" with a
5    list of those ingredients contained in the compound,
6    substance or preparation.
7    Beginning on the effective date of this amendatory Act of
8the 98th General Assembly, "prescription and nonprescription
9medicines and drugs" includes medical cannabis purchased from a
10registered dispensing organization under the Compassionate Use
11of Medical Cannabis Pilot Program Act.
12    If the property that is purchased at retail from a retailer
13is acquired outside Illinois and used outside Illinois before
14being brought to Illinois for use here and is taxable under
15this Act, the "selling price" on which the tax is computed
16shall be reduced by an amount that represents a reasonable
17allowance for depreciation for the period of prior out-of-state
18use.
19(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15;
2099-858, eff. 8-19-16.)
 
21    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
22    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
23and trailers that are required to be registered with an agency
24of this State, each retailer required or authorized to collect
25the tax imposed by this Act shall pay to the Department the

 

 

10000SB0472sam001- 181 -LRB100 05155 HLH 23971 a

1amount of such tax (except as otherwise provided) at the time
2when he is required to file his return for the period during
3which such tax was collected, less a discount of 2.1% prior to
4January 1, 1990, and 1.75% on and after January 1, 1990, or $5
5per calendar year, whichever is greater, which is allowed to
6reimburse the retailer for expenses incurred in collecting the
7tax, keeping records, preparing and filing returns, remitting
8the tax and supplying data to the Department on request.
9Notwithstanding any other provision of law, no such vendor
10discount is allowed under this Act on or after July 1, 2017. In
11the case of retailers who report and pay the tax on a
12transaction by transaction basis, as provided in this Section,
13such discount shall be taken with each such tax remittance
14instead of when such retailer files his periodic return. The
15Department may disallow the discount for retailers whose
16certificate of registration is revoked at the time the return
17is filed, but only if the Department's decision to revoke the
18certificate of registration has become final. A retailer need
19not remit that part of any tax collected by him to the extent
20that he is required to remit and does remit the tax imposed by
21the Retailers' Occupation Tax Act, with respect to the sale of
22the same property.
23    Where such tangible personal property is sold under a
24conditional sales contract, or under any other form of sale
25wherein the payment of the principal sum, or a part thereof, is
26extended beyond the close of the period for which the return is

 

 

10000SB0472sam001- 182 -LRB100 05155 HLH 23971 a

1filed, the retailer, in collecting the tax (except as to motor
2vehicles, watercraft, aircraft, and trailers that are required
3to be registered with an agency of this State), may collect for
4each tax return period, only the tax applicable to that part of
5the selling price actually received during such tax return
6period.
7    Except as provided in this Section, on or before the
8twentieth day of each calendar month, such retailer shall file
9a return for the preceding calendar month. Such return shall be
10filed on forms prescribed by the Department and shall furnish
11such information as the Department may reasonably require.
12    The Department may require returns to be filed on a
13quarterly basis. If so required, a return for each calendar
14quarter shall be filed on or before the twentieth day of the
15calendar month following the end of such calendar quarter. The
16taxpayer shall also file a return with the Department for each
17of the first two months of each calendar quarter, on or before
18the twentieth day of the following calendar month, stating:
19        1. The name of the seller;
20        2. The address of the principal place of business from
21    which he engages in the business of selling tangible
22    personal property at retail in this State;
23        3. The total amount of taxable receipts received by him
24    during the preceding calendar month from sales of tangible
25    personal property by him during such preceding calendar
26    month, including receipts from charge and time sales, but

 

 

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1    less all deductions allowed by law;
2        4. The amount of credit provided in Section 2d of this
3    Act;
4        5. The amount of tax due;
5        5-5. The signature of the taxpayer; and
6        6. Such other reasonable information as the Department
7    may require.
8    If a taxpayer fails to sign a return within 30 days after
9the proper notice and demand for signature by the Department,
10the return shall be considered valid and any amount shown to be
11due on the return shall be deemed assessed.
12    Beginning October 1, 1993, a taxpayer who has an average
13monthly tax liability of $150,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1994, a taxpayer who has
16an average monthly tax liability of $100,000 or more shall make
17all payments required by rules of the Department by electronic
18funds transfer. Beginning October 1, 1995, a taxpayer who has
19an average monthly tax liability of $50,000 or more shall make
20all payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 2000, a taxpayer who has
22an annual tax liability of $200,000 or more shall make all
23payments required by rules of the Department by electronic
24funds transfer. The term "annual tax liability" shall be the
25sum of the taxpayer's liabilities under this Act, and under all
26other State and local occupation and use tax laws administered

 

 

10000SB0472sam001- 184 -LRB100 05155 HLH 23971 a

1by the Department, for the immediately preceding calendar year.
2The term "average monthly tax liability" means the sum of the
3taxpayer's liabilities under this Act, and under all other
4State and local occupation and use tax laws administered by the
5Department, for the immediately preceding calendar year
6divided by 12. Beginning on October 1, 2002, a taxpayer who has
7a tax liability in the amount set forth in subsection (b) of
8Section 2505-210 of the Department of Revenue Law shall make
9all payments required by rules of the Department by electronic
10funds transfer.
11    Before August 1 of each year beginning in 1993, the
12Department shall notify all taxpayers required to make payments
13by electronic funds transfer. All taxpayers required to make
14payments by electronic funds transfer shall make those payments
15for a minimum of one year beginning on October 1.
16    Any taxpayer not required to make payments by electronic
17funds transfer may make payments by electronic funds transfer
18with the permission of the Department.
19    All taxpayers required to make payment by electronic funds
20transfer and any taxpayers authorized to voluntarily make
21payments by electronic funds transfer shall make those payments
22in the manner authorized by the Department.
23    The Department shall adopt such rules as are necessary to
24effectuate a program of electronic funds transfer and the
25requirements of this Section.
26    Before October 1, 2000, if the taxpayer's average monthly

 

 

10000SB0472sam001- 185 -LRB100 05155 HLH 23971 a

1tax liability to the Department under this Act, the Retailers'
2Occupation Tax Act, the Service Occupation Tax Act, the Service
3Use Tax Act was $10,000 or more during the preceding 4 complete
4calendar quarters, he shall file a return with the Department
5each month by the 20th day of the month next following the
6month during which such tax liability is incurred and shall
7make payments to the Department on or before the 7th, 15th,
822nd and last day of the month during which such liability is
9incurred. On and after October 1, 2000, if the taxpayer's
10average monthly tax liability to the Department under this Act,
11the Retailers' Occupation Tax Act, the Service Occupation Tax
12Act, and the Service Use Tax Act was $20,000 or more during the
13preceding 4 complete calendar quarters, he shall file a return
14with the Department each month by the 20th day of the month
15next following the month during which such tax liability is
16incurred and shall make payment to the Department on or before
17the 7th, 15th, 22nd and last day of the month during which such
18liability is incurred. If the month during which such tax
19liability is incurred began prior to January 1, 1985, each
20payment shall be in an amount equal to 1/4 of the taxpayer's
21actual liability for the month or an amount set by the
22Department not to exceed 1/4 of the average monthly liability
23of the taxpayer to the Department for the preceding 4 complete
24calendar quarters (excluding the month of highest liability and
25the month of lowest liability in such 4 quarter period). If the
26month during which such tax liability is incurred begins on or

 

 

10000SB0472sam001- 186 -LRB100 05155 HLH 23971 a

1after January 1, 1985, and prior to January 1, 1987, each
2payment shall be in an amount equal to 22.5% of the taxpayer's
3actual liability for the month or 27.5% of the taxpayer's
4liability for the same calendar month of the preceding year. If
5the month during which such tax liability is incurred begins on
6or after January 1, 1987, and prior to January 1, 1988, each
7payment shall be in an amount equal to 22.5% of the taxpayer's
8actual liability for the month or 26.25% of the taxpayer's
9liability for the same calendar month of the preceding year. If
10the month during which such tax liability is incurred begins on
11or after January 1, 1988, and prior to January 1, 1989, or
12begins on or after January 1, 1996, each payment shall be in an
13amount equal to 22.5% of the taxpayer's actual liability for
14the month or 25% of the taxpayer's liability for the same
15calendar month of the preceding year. If the month during which
16such tax liability is incurred begins on or after January 1,
171989, and prior to January 1, 1996, each payment shall be in an
18amount equal to 22.5% of the taxpayer's actual liability for
19the month or 25% of the taxpayer's liability for the same
20calendar month of the preceding year or 100% of the taxpayer's
21actual liability for the quarter monthly reporting period. The
22amount of such quarter monthly payments shall be credited
23against the final tax liability of the taxpayer's return for
24that month. Before October 1, 2000, once applicable, the
25requirement of the making of quarter monthly payments to the
26Department shall continue until such taxpayer's average

 

 

10000SB0472sam001- 187 -LRB100 05155 HLH 23971 a

1monthly liability to the Department during the preceding 4
2complete calendar quarters (excluding the month of highest
3liability and the month of lowest liability) is less than
4$9,000, or until such taxpayer's average monthly liability to
5the Department as computed for each calendar quarter of the 4
6preceding complete calendar quarter period is less than
7$10,000. However, if a taxpayer can show the Department that a
8substantial change in the taxpayer's business has occurred
9which causes the taxpayer to anticipate that his average
10monthly tax liability for the reasonably foreseeable future
11will fall below the $10,000 threshold stated above, then such
12taxpayer may petition the Department for change in such
13taxpayer's reporting status. On and after October 1, 2000, once
14applicable, the requirement of the making of quarter monthly
15payments to the Department shall continue until such taxpayer's
16average monthly liability to the Department during the
17preceding 4 complete calendar quarters (excluding the month of
18highest liability and the month of lowest liability) is less
19than $19,000 or until such taxpayer's average monthly liability
20to the Department as computed for each calendar quarter of the
214 preceding complete calendar quarter period is less than
22$20,000. However, if a taxpayer can show the Department that a
23substantial change in the taxpayer's business has occurred
24which causes the taxpayer to anticipate that his average
25monthly tax liability for the reasonably foreseeable future
26will fall below the $20,000 threshold stated above, then such

 

 

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1taxpayer may petition the Department for a change in such
2taxpayer's reporting status. The Department shall change such
3taxpayer's reporting status unless it finds that such change is
4seasonal in nature and not likely to be long term. If any such
5quarter monthly payment is not paid at the time or in the
6amount required by this Section, then the taxpayer shall be
7liable for penalties and interest on the difference between the
8minimum amount due and the amount of such quarter monthly
9payment actually and timely paid, except insofar as the
10taxpayer has previously made payments for that month to the
11Department in excess of the minimum payments previously due as
12provided in this Section. The Department shall make reasonable
13rules and regulations to govern the quarter monthly payment
14amount and quarter monthly payment dates for taxpayers who file
15on other than a calendar monthly basis.
16    If any such payment provided for in this Section exceeds
17the taxpayer's liabilities under this Act, the Retailers'
18Occupation Tax Act, the Service Occupation Tax Act and the
19Service Use Tax Act, as shown by an original monthly return,
20the Department shall issue to the taxpayer a credit memorandum
21no later than 30 days after the date of payment, which
22memorandum may be submitted by the taxpayer to the Department
23in payment of tax liability subsequently to be remitted by the
24taxpayer to the Department or be assigned by the taxpayer to a
25similar taxpayer under this Act, the Retailers' Occupation Tax
26Act, the Service Occupation Tax Act or the Service Use Tax Act,

 

 

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1in accordance with reasonable rules and regulations to be
2prescribed by the Department, except that if such excess
3payment is shown on an original monthly return and is made
4after December 31, 1986, no credit memorandum shall be issued,
5unless requested by the taxpayer. If no such request is made,
6the taxpayer may credit such excess payment against tax
7liability subsequently to be remitted by the taxpayer to the
8Department under this Act, the Retailers' Occupation Tax Act,
9the Service Occupation Tax Act or the Service Use Tax Act, in
10accordance with reasonable rules and regulations prescribed by
11the Department. If the Department subsequently determines that
12all or any part of the credit taken was not actually due to the
13taxpayer, until July 1, 2017, the taxpayer's 2.1% or 1.75%
14vendor's discount shall be reduced by 2.1% or 1.75% of the
15difference between the credit taken and that actually due, and
16the taxpayer shall be liable for penalties and interest on such
17difference.
18    If the retailer is otherwise required to file a monthly
19return and if the retailer's average monthly tax liability to
20the Department does not exceed $200, the Department may
21authorize his returns to be filed on a quarter annual basis,
22with the return for January, February, and March of a given
23year being due by April 20 of such year; with the return for
24April, May and June of a given year being due by July 20 of such
25year; with the return for July, August and September of a given
26year being due by October 20 of such year, and with the return

 

 

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1for October, November and December of a given year being due by
2January 20 of the following year.
3    If the retailer is otherwise required to file a monthly or
4quarterly return and if the retailer's average monthly tax
5liability to the Department does not exceed $50, the Department
6may authorize his returns to be filed on an annual basis, with
7the return for a given year being due by January 20 of the
8following year.
9    Such quarter annual and annual returns, as to form and
10substance, shall be subject to the same requirements as monthly
11returns.
12    Notwithstanding any other provision in this Act concerning
13the time within which a retailer may file his return, in the
14case of any retailer who ceases to engage in a kind of business
15which makes him responsible for filing returns under this Act,
16such retailer shall file a final return under this Act with the
17Department not more than one month after discontinuing such
18business.
19    In addition, with respect to motor vehicles, watercraft,
20aircraft, and trailers that are required to be registered with
21an agency of this State, every retailer selling this kind of
22tangible personal property shall file, with the Department,
23upon a form to be prescribed and supplied by the Department, a
24separate return for each such item of tangible personal
25property which the retailer sells, except that if, in the same
26transaction, (i) a retailer of aircraft, watercraft, motor

 

 

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1vehicles or trailers transfers more than one aircraft,
2watercraft, motor vehicle or trailer to another aircraft,
3watercraft, motor vehicle or trailer retailer for the purpose
4of resale or (ii) a retailer of aircraft, watercraft, motor
5vehicles, or trailers transfers more than one aircraft,
6watercraft, motor vehicle, or trailer to a purchaser for use as
7a qualifying rolling stock as provided in Section 3-55 of this
8Act, then that seller may report the transfer of all the
9aircraft, watercraft, motor vehicles or trailers involved in
10that transaction to the Department on the same uniform
11invoice-transaction reporting return form. For purposes of
12this Section, "watercraft" means a Class 2, Class 3, or Class 4
13watercraft as defined in Section 3-2 of the Boat Registration
14and Safety Act, a personal watercraft, or any boat equipped
15with an inboard motor.
16    The transaction reporting return in the case of motor
17vehicles or trailers that are required to be registered with an
18agency of this State, shall be the same document as the Uniform
19Invoice referred to in Section 5-402 of the Illinois Vehicle
20Code and must show the name and address of the seller; the name
21and address of the purchaser; the amount of the selling price
22including the amount allowed by the retailer for traded-in
23property, if any; the amount allowed by the retailer for the
24traded-in tangible personal property, if any, to the extent to
25which Section 2 of this Act allows an exemption for the value
26of traded-in property; the balance payable after deducting such

 

 

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1trade-in allowance from the total selling price; the amount of
2tax due from the retailer with respect to such transaction; the
3amount of tax collected from the purchaser by the retailer on
4such transaction (or satisfactory evidence that such tax is not
5due in that particular instance, if that is claimed to be the
6fact); the place and date of the sale; a sufficient
7identification of the property sold; such other information as
8is required in Section 5-402 of the Illinois Vehicle Code, and
9such other information as the Department may reasonably
10require.
11    The transaction reporting return in the case of watercraft
12and aircraft must show the name and address of the seller; the
13name and address of the purchaser; the amount of the selling
14price including the amount allowed by the retailer for
15traded-in property, if any; the amount allowed by the retailer
16for the traded-in tangible personal property, if any, to the
17extent to which Section 2 of this Act allows an exemption for
18the value of traded-in property; the balance payable after
19deducting such trade-in allowance from the total selling price;
20the amount of tax due from the retailer with respect to such
21transaction; the amount of tax collected from the purchaser by
22the retailer on such transaction (or satisfactory evidence that
23such tax is not due in that particular instance, if that is
24claimed to be the fact); the place and date of the sale, a
25sufficient identification of the property sold, and such other
26information as the Department may reasonably require.

 

 

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1    Such transaction reporting return shall be filed not later
2than 20 days after the date of delivery of the item that is
3being sold, but may be filed by the retailer at any time sooner
4than that if he chooses to do so. The transaction reporting
5return and tax remittance or proof of exemption from the tax
6that is imposed by this Act may be transmitted to the
7Department by way of the State agency with which, or State
8officer with whom, the tangible personal property must be
9titled or registered (if titling or registration is required)
10if the Department and such agency or State officer determine
11that this procedure will expedite the processing of
12applications for title or registration.
13    With each such transaction reporting return, the retailer
14shall remit the proper amount of tax due (or shall submit
15satisfactory evidence that the sale is not taxable if that is
16the case), to the Department or its agents, whereupon the
17Department shall issue, in the purchaser's name, a tax receipt
18(or a certificate of exemption if the Department is satisfied
19that the particular sale is tax exempt) which such purchaser
20may submit to the agency with which, or State officer with
21whom, he must title or register the tangible personal property
22that is involved (if titling or registration is required) in
23support of such purchaser's application for an Illinois
24certificate or other evidence of title or registration to such
25tangible personal property.
26    No retailer's failure or refusal to remit tax under this

 

 

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1Act precludes a user, who has paid the proper tax to the
2retailer, from obtaining his certificate of title or other
3evidence of title or registration (if titling or registration
4is required) upon satisfying the Department that such user has
5paid the proper tax (if tax is due) to the retailer. The
6Department shall adopt appropriate rules to carry out the
7mandate of this paragraph.
8    If the user who would otherwise pay tax to the retailer
9wants the transaction reporting return filed and the payment of
10tax or proof of exemption made to the Department before the
11retailer is willing to take these actions and such user has not
12paid the tax to the retailer, such user may certify to the fact
13of such delay by the retailer, and may (upon the Department
14being satisfied of the truth of such certification) transmit
15the information required by the transaction reporting return
16and the remittance for tax or proof of exemption directly to
17the Department and obtain his tax receipt or exemption
18determination, in which event the transaction reporting return
19and tax remittance (if a tax payment was required) shall be
20credited by the Department to the proper retailer's account
21with the Department, but without the 2.1% or 1.75% discount
22provided for in this Section being allowed. When the user pays
23the tax directly to the Department, he shall pay the tax in the
24same amount and in the same form in which it would be remitted
25if the tax had been remitted to the Department by the retailer.
26    Where a retailer collects the tax with respect to the

 

 

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1selling price of tangible personal property which he sells and
2the purchaser thereafter returns such tangible personal
3property and the retailer refunds the selling price thereof to
4the purchaser, such retailer shall also refund, to the
5purchaser, the tax so collected from the purchaser. When filing
6his return for the period in which he refunds such tax to the
7purchaser, the retailer may deduct the amount of the tax so
8refunded by him to the purchaser from any other use tax which
9such retailer may be required to pay or remit to the
10Department, as shown by such return, if the amount of the tax
11to be deducted was previously remitted to the Department by
12such retailer. If the retailer has not previously remitted the
13amount of such tax to the Department, he is entitled to no
14deduction under this Act upon refunding such tax to the
15purchaser.
16    Any retailer filing a return under this Section shall also
17include (for the purpose of paying tax thereon) the total tax
18covered by such return upon the selling price of tangible
19personal property purchased by him at retail from a retailer,
20but as to which the tax imposed by this Act was not collected
21from the retailer filing such return, and such retailer shall
22remit the amount of such tax to the Department when filing such
23return.
24    If experience indicates such action to be practicable, the
25Department may prescribe and furnish a combination or joint
26return which will enable retailers, who are required to file

 

 

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1returns hereunder and also under the Retailers' Occupation Tax
2Act, to furnish all the return information required by both
3Acts on the one form.
4    Where the retailer has more than one business registered
5with the Department under separate registration under this Act,
6such retailer may not file each return that is due as a single
7return covering all such registered businesses, but shall file
8separate returns for each such registered business.
9    Beginning January 1, 1990 and until August 1, 2017, each
10month the Department shall pay into the State and Local Sales
11Tax Reform Fund, a special fund in the State Treasury which is
12hereby created, the net revenue realized for the preceding
13month from the 1% tax on sales of food for human consumption
14which is to be consumed off the premises where it is sold
15(other than alcoholic beverages, soft drinks and food which has
16been prepared for immediate consumption) and prescription and
17nonprescription medicines, drugs, medical appliances, products
18classified as Class III medical devices by the United States
19Food and Drug Administration that are used for cancer treatment
20pursuant to a prescription, as well as any accessories and
21components related to those devices, and insulin, urine testing
22materials, syringes and needles used by diabetics.
23    Beginning August 1, 2017, each month the Department shall
24pay into the State and Local Sales Tax Reform Fund 27.5% of the
25net revenue realized for the preceding month from the 3.625%
26tax on sales of food for human consumption which is to be

 

 

10000SB0472sam001- 197 -LRB100 05155 HLH 23971 a

1consumed off the premises where it is sold (other than
2alcoholic beverages, soft drinks and food which has been
3prepared for immediate consumption) and prescription and
4nonprescription medicines, drugs, medical appliances, products
5classified as Class III medical devices by the United States
6Food and Drug Administration that are used for cancer treatment
7pursuant to a prescription, as well as any accessories and
8components related to those devices, and insulin, urine testing
9materials, syringes and needles used by diabetics.
10    Beginning January 1, 1990, each month the Department shall
11pay into the County and Mass Transit District Fund 4% of the
12net revenue realized for the preceding month from the 6.25%
13general rate on the selling price of tangible personal property
14which is purchased outside Illinois at retail from a retailer
15and which is titled or registered by an agency of this State's
16government.
17    Beginning January 1, 1990, each month the Department shall
18pay into the State and Local Sales Tax Reform Fund, a special
19fund in the State Treasury, 20% of the net revenue realized for
20the preceding month from the 6.25% general rate on the selling
21price of tangible personal property, other than tangible
22personal property which is purchased outside Illinois at retail
23from a retailer and which is titled or registered by an agency
24of this State's government.
25    Beginning August 1, 2000, each month the Department shall
26pay into the State and Local Sales Tax Reform Fund 100% of the

 

 

10000SB0472sam001- 198 -LRB100 05155 HLH 23971 a

1net revenue realized for the preceding month from the 1.25%
2rate on the selling price of motor fuel and gasohol. Beginning
3September 1, 2010, each month the Department shall pay into the
4State and Local Sales Tax Reform Fund 100% of the net revenue
5realized for the preceding month from the 1.25% rate on the
6selling price of sales tax holiday items.
7    Beginning January 1, 1990, each month the Department shall
8pay into the Local Government Tax Fund 16% of the net revenue
9realized for the preceding month from the 6.25% general rate on
10the selling price of tangible personal property which is
11purchased outside Illinois at retail from a retailer and which
12is titled or registered by an agency of this State's
13government.
14    Beginning October 1, 2009, each month the Department shall
15pay into the Capital Projects Fund an amount that is equal to
16an amount estimated by the Department to represent 80% of the
17net revenue realized for the preceding month from the sale of
18candy, grooming and hygiene products, and soft drinks that had
19been taxed at a rate of 1% prior to September 1, 2009 but that
20are now taxed at 6.25%.
21    Beginning July 1, 2011, each month the Department shall pay
22into the Clean Air Act Permit Fund 80% of the net revenue
23realized for the preceding month from the 6.25% general rate on
24the selling price of sorbents used in Illinois in the process
25of sorbent injection as used to comply with the Environmental