101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5844

 

Introduced 11/10/2020, by Rep. Allen Skillicorn

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/201
35 ILCS 5/208  from Ch. 120, par. 2-208

    Amends the Illinois Income Tax Act. Provides that the education expense credit shall be $2,500 for tax years ending on or after December 31, 2020. Provides that, if the school district in which the principal residence of the taxpayer is located has implemented attendance restrictions as a result of the COVID-19 pandemic during any part of the taxable year, then, for that taxable year only, the tax credit for residential real property taxes shall be equal to 25% of real property taxes paid by the taxpayer during the taxable year on the principal residence of the taxpayer. Effective immediately.


LRB101 22177 HLH 73205 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5844LRB101 22177 HLH 73205 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Sections 201 and 208 as follows:
 
6    (35 ILCS 5/201)
7    (Text of Section before amendment by P.A. 101-8)
8    Sec. 201. Tax imposed.
9    (a) In general. A tax measured by net income is hereby
10imposed on every individual, corporation, trust and estate for
11each taxable year ending after July 31, 1969 on the privilege
12of earning or receiving income in or as a resident of this
13State. Such tax shall be in addition to all other occupation or
14privilege taxes imposed by this State or by any municipal
15corporation or political subdivision thereof.
16    (b) Rates. The tax imposed by subsection (a) of this
17Section shall be determined as follows, except as adjusted by
18subsection (d-1):
19        (1) In the case of an individual, trust or estate, for
20    taxable years ending prior to July 1, 1989, an amount equal
21    to 2 1/2% of the taxpayer's net income for the taxable
22    year.
23        (2) In the case of an individual, trust or estate, for

 

 

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1    taxable years beginning prior to July 1, 1989 and ending
2    after June 30, 1989, an amount equal to the sum of (i) 2
3    1/2% of the taxpayer's net income for the period prior to
4    July 1, 1989, as calculated under Section 202.3, and (ii)
5    3% of the taxpayer's net income for the period after June
6    30, 1989, as calculated under Section 202.3.
7        (3) In the case of an individual, trust or estate, for
8    taxable years beginning after June 30, 1989, and ending
9    prior to January 1, 2011, an amount equal to 3% of the
10    taxpayer's net income for the taxable year.
11        (4) In the case of an individual, trust, or estate, for
12    taxable years beginning prior to January 1, 2011, and
13    ending after December 31, 2010, an amount equal to the sum
14    of (i) 3% of the taxpayer's net income for the period prior
15    to January 1, 2011, as calculated under Section 202.5, and
16    (ii) 5% of the taxpayer's net income for the period after
17    December 31, 2010, as calculated under Section 202.5.
18        (5) In the case of an individual, trust, or estate, for
19    taxable years beginning on or after January 1, 2011, and
20    ending prior to January 1, 2015, an amount equal to 5% of
21    the taxpayer's net income for the taxable year.
22        (5.1) In the case of an individual, trust, or estate,
23    for taxable years beginning prior to January 1, 2015, and
24    ending after December 31, 2014, an amount equal to the sum
25    of (i) 5% of the taxpayer's net income for the period prior
26    to January 1, 2015, as calculated under Section 202.5, and

 

 

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1    (ii) 3.75% of the taxpayer's net income for the period
2    after December 31, 2014, as calculated under Section 202.5.
3        (5.2) In the case of an individual, trust, or estate,
4    for taxable years beginning on or after January 1, 2015,
5    and ending prior to July 1, 2017, an amount equal to 3.75%
6    of the taxpayer's net income for the taxable year.
7        (5.3) In the case of an individual, trust, or estate,
8    for taxable years beginning prior to July 1, 2017, and
9    ending after June 30, 2017, an amount equal to the sum of
10    (i) 3.75% of the taxpayer's net income for the period prior
11    to July 1, 2017, as calculated under Section 202.5, and
12    (ii) 4.95% of the taxpayer's net income for the period
13    after June 30, 2017, as calculated under Section 202.5.
14        (5.4) In the case of an individual, trust, or estate,
15    for taxable years beginning on or after July 1, 2017, an
16    amount equal to 4.95% of the taxpayer's net income for the
17    taxable year.
18        (6) In the case of a corporation, for taxable years
19    ending prior to July 1, 1989, an amount equal to 4% of the
20    taxpayer's net income for the taxable year.
21        (7) In the case of a corporation, for taxable years
22    beginning prior to July 1, 1989 and ending after June 30,
23    1989, an amount equal to the sum of (i) 4% of the
24    taxpayer's net income for the period prior to July 1, 1989,
25    as calculated under Section 202.3, and (ii) 4.8% of the
26    taxpayer's net income for the period after June 30, 1989,

 

 

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1    as calculated under Section 202.3.
2        (8) In the case of a corporation, for taxable years
3    beginning after June 30, 1989, and ending prior to January
4    1, 2011, an amount equal to 4.8% of the taxpayer's net
5    income for the taxable year.
6        (9) In the case of a corporation, for taxable years
7    beginning prior to January 1, 2011, and ending after
8    December 31, 2010, an amount equal to the sum of (i) 4.8%
9    of the taxpayer's net income for the period prior to
10    January 1, 2011, as calculated under Section 202.5, and
11    (ii) 7% of the taxpayer's net income for the period after
12    December 31, 2010, as calculated under Section 202.5.
13        (10) In the case of a corporation, for taxable years
14    beginning on or after January 1, 2011, and ending prior to
15    January 1, 2015, an amount equal to 7% of the taxpayer's
16    net income for the taxable year.
17        (11) In the case of a corporation, for taxable years
18    beginning prior to January 1, 2015, and ending after
19    December 31, 2014, an amount equal to the sum of (i) 7% of
20    the taxpayer's net income for the period prior to January
21    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
22    of the taxpayer's net income for the period after December
23    31, 2014, as calculated under Section 202.5.
24        (12) In the case of a corporation, for taxable years
25    beginning on or after January 1, 2015, and ending prior to
26    July 1, 2017, an amount equal to 5.25% of the taxpayer's

 

 

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1    net income for the taxable year.
2        (13) In the case of a corporation, for taxable years
3    beginning prior to July 1, 2017, and ending after June 30,
4    2017, an amount equal to the sum of (i) 5.25% of the
5    taxpayer's net income for the period prior to July 1, 2017,
6    as calculated under Section 202.5, and (ii) 7% of the
7    taxpayer's net income for the period after June 30, 2017,
8    as calculated under Section 202.5.
9        (14) In the case of a corporation, for taxable years
10    beginning on or after July 1, 2017, an amount equal to 7%
11    of the taxpayer's net income for the taxable year.
12    The rates under this subsection (b) are subject to the
13provisions of Section 201.5.
14    (b-5) Surcharge; sale or exchange of assets, properties,
15and intangibles of organization gaming licensees. For each of
16taxable years 2019 through 2027, a surcharge is imposed on all
17taxpayers on income arising from the sale or exchange of
18capital assets, depreciable business property, real property
19used in the trade or business, and Section 197 intangibles (i)
20of an organization licensee under the Illinois Horse Racing Act
21of 1975 and (ii) of an organization gaming licensee under the
22Illinois Gambling Act. The amount of the surcharge is equal to
23the amount of federal income tax liability for the taxable year
24attributable to those sales and exchanges. The surcharge
25imposed shall not apply if:
26        (1) the organization gaming license, organization

 

 

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1    license, or racetrack property is transferred as a result
2    of any of the following:
3            (A) bankruptcy, a receivership, or a debt
4        adjustment initiated by or against the initial
5        licensee or the substantial owners of the initial
6        licensee;
7            (B) cancellation, revocation, or termination of
8        any such license by the Illinois Gaming Board or the
9        Illinois Racing Board;
10            (C) a determination by the Illinois Gaming Board
11        that transfer of the license is in the best interests
12        of Illinois gaming;
13            (D) the death of an owner of the equity interest in
14        a licensee;
15            (E) the acquisition of a controlling interest in
16        the stock or substantially all of the assets of a
17        publicly traded company;
18            (F) a transfer by a parent company to a wholly
19        owned subsidiary; or
20            (G) the transfer or sale to or by one person to
21        another person where both persons were initial owners
22        of the license when the license was issued; or
23        (2) the controlling interest in the organization
24    gaming license, organization license, or racetrack
25    property is transferred in a transaction to lineal
26    descendants in which no gain or loss is recognized or as a

 

 

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1    result of a transaction in accordance with Section 351 of
2    the Internal Revenue Code in which no gain or loss is
3    recognized; or
4        (3) live horse racing was not conducted in 2010 at a
5    racetrack located within 3 miles of the Mississippi River
6    under a license issued pursuant to the Illinois Horse
7    Racing Act of 1975.
8    The transfer of an organization gaming license,
9organization license, or racetrack property by a person other
10than the initial licensee to receive the organization gaming
11license is not subject to a surcharge. The Department shall
12adopt rules necessary to implement and administer this
13subsection.
14    (c) Personal Property Tax Replacement Income Tax.
15Beginning on July 1, 1979 and thereafter, in addition to such
16income tax, there is also hereby imposed the Personal Property
17Tax Replacement Income Tax measured by net income on every
18corporation (including Subchapter S corporations), partnership
19and trust, for each taxable year ending after June 30, 1979.
20Such taxes are imposed on the privilege of earning or receiving
21income in or as a resident of this State. The Personal Property
22Tax Replacement Income Tax shall be in addition to the income
23tax imposed by subsections (a) and (b) of this Section and in
24addition to all other occupation or privilege taxes imposed by
25this State or by any municipal corporation or political
26subdivision thereof.

 

 

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1    (d) Additional Personal Property Tax Replacement Income
2Tax Rates. The personal property tax replacement income tax
3imposed by this subsection and subsection (c) of this Section
4in the case of a corporation, other than a Subchapter S
5corporation and except as adjusted by subsection (d-1), shall
6be an additional amount equal to 2.85% of such taxpayer's net
7income for the taxable year, except that beginning on January
81, 1981, and thereafter, the rate of 2.85% specified in this
9subsection shall be reduced to 2.5%, and in the case of a
10partnership, trust or a Subchapter S corporation shall be an
11additional amount equal to 1.5% of such taxpayer's net income
12for the taxable year.
13    (d-1) Rate reduction for certain foreign insurers. In the
14case of a foreign insurer, as defined by Section 35A-5 of the
15Illinois Insurance Code, whose state or country of domicile
16imposes on insurers domiciled in Illinois a retaliatory tax
17(excluding any insurer whose premiums from reinsurance assumed
18are 50% or more of its total insurance premiums as determined
19under paragraph (2) of subsection (b) of Section 304, except
20that for purposes of this determination premiums from
21reinsurance do not include premiums from inter-affiliate
22reinsurance arrangements), beginning with taxable years ending
23on or after December 31, 1999, the sum of the rates of tax
24imposed by subsections (b) and (d) shall be reduced (but not
25increased) to the rate at which the total amount of tax imposed
26under this Act, net of all credits allowed under this Act,

 

 

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1shall equal (i) the total amount of tax that would be imposed
2on the foreign insurer's net income allocable to Illinois for
3the taxable year by such foreign insurer's state or country of
4domicile if that net income were subject to all income taxes
5and taxes measured by net income imposed by such foreign
6insurer's state or country of domicile, net of all credits
7allowed or (ii) a rate of zero if no such tax is imposed on such
8income by the foreign insurer's state of domicile. For the
9purposes of this subsection (d-1), an inter-affiliate includes
10a mutual insurer under common management.
11        (1) For the purposes of subsection (d-1), in no event
12    shall the sum of the rates of tax imposed by subsections
13    (b) and (d) be reduced below the rate at which the sum of:
14            (A) the total amount of tax imposed on such foreign
15        insurer under this Act for a taxable year, net of all
16        credits allowed under this Act, plus
17            (B) the privilege tax imposed by Section 409 of the
18        Illinois Insurance Code, the fire insurance company
19        tax imposed by Section 12 of the Fire Investigation
20        Act, and the fire department taxes imposed under
21        Section 11-10-1 of the Illinois Municipal Code,
22    equals 1.25% for taxable years ending prior to December 31,
23    2003, or 1.75% for taxable years ending on or after
24    December 31, 2003, of the net taxable premiums written for
25    the taxable year, as described by subsection (1) of Section
26    409 of the Illinois Insurance Code. This paragraph will in

 

 

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1    no event increase the rates imposed under subsections (b)
2    and (d).
3        (2) Any reduction in the rates of tax imposed by this
4    subsection shall be applied first against the rates imposed
5    by subsection (b) and only after the tax imposed by
6    subsection (a) net of all credits allowed under this
7    Section other than the credit allowed under subsection (i)
8    has been reduced to zero, against the rates imposed by
9    subsection (d).
10    This subsection (d-1) is exempt from the provisions of
11Section 250.
12    (e) Investment credit. A taxpayer shall be allowed a credit
13against the Personal Property Tax Replacement Income Tax for
14investment in qualified property.
15        (1) A taxpayer shall be allowed a credit equal to .5%
16    of the basis of qualified property placed in service during
17    the taxable year, provided such property is placed in
18    service on or after July 1, 1984. There shall be allowed an
19    additional credit equal to .5% of the basis of qualified
20    property placed in service during the taxable year,
21    provided such property is placed in service on or after
22    July 1, 1986, and the taxpayer's base employment within
23    Illinois has increased by 1% or more over the preceding
24    year as determined by the taxpayer's employment records
25    filed with the Illinois Department of Employment Security.
26    Taxpayers who are new to Illinois shall be deemed to have

 

 

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1    met the 1% growth in base employment for the first year in
2    which they file employment records with the Illinois
3    Department of Employment Security. The provisions added to
4    this Section by Public Act 85-1200 (and restored by Public
5    Act 87-895) shall be construed as declaratory of existing
6    law and not as a new enactment. If, in any year, the
7    increase in base employment within Illinois over the
8    preceding year is less than 1%, the additional credit shall
9    be limited to that percentage times a fraction, the
10    numerator of which is .5% and the denominator of which is
11    1%, but shall not exceed .5%. The investment credit shall
12    not be allowed to the extent that it would reduce a
13    taxpayer's liability in any tax year below zero, nor may
14    any credit for qualified property be allowed for any year
15    other than the year in which the property was placed in
16    service in Illinois. For tax years ending on or after
17    December 31, 1987, and on or before December 31, 1988, the
18    credit shall be allowed for the tax year in which the
19    property is placed in service, or, if the amount of the
20    credit exceeds the tax liability for that year, whether it
21    exceeds the original liability or the liability as later
22    amended, such excess may be carried forward and applied to
23    the tax liability of the 5 taxable years following the
24    excess credit years if the taxpayer (i) makes investments
25    which cause the creation of a minimum of 2,000 full-time
26    equivalent jobs in Illinois, (ii) is located in an

 

 

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1    enterprise zone established pursuant to the Illinois
2    Enterprise Zone Act and (iii) is certified by the
3    Department of Commerce and Community Affairs (now
4    Department of Commerce and Economic Opportunity) as
5    complying with the requirements specified in clause (i) and
6    (ii) by July 1, 1986. The Department of Commerce and
7    Community Affairs (now Department of Commerce and Economic
8    Opportunity) shall notify the Department of Revenue of all
9    such certifications immediately. For tax years ending
10    after December 31, 1988, the credit shall be allowed for
11    the tax year in which the property is placed in service,
12    or, if the amount of the credit exceeds the tax liability
13    for that year, whether it exceeds the original liability or
14    the liability as later amended, such excess may be carried
15    forward and applied to the tax liability of the 5 taxable
16    years following the excess credit years. The credit shall
17    be applied to the earliest year for which there is a
18    liability. If there is credit from more than one tax year
19    that is available to offset a liability, earlier credit
20    shall be applied first.
21        (2) The term "qualified property" means property
22    which:
23            (A) is tangible, whether new or used, including
24        buildings and structural components of buildings and
25        signs that are real property, but not including land or
26        improvements to real property that are not a structural

 

 

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1        component of a building such as landscaping, sewer
2        lines, local access roads, fencing, parking lots, and
3        other appurtenances;
4            (B) is depreciable pursuant to Section 167 of the
5        Internal Revenue Code, except that "3-year property"
6        as defined in Section 168(c)(2)(A) of that Code is not
7        eligible for the credit provided by this subsection
8        (e);
9            (C) is acquired by purchase as defined in Section
10        179(d) of the Internal Revenue Code;
11            (D) is used in Illinois by a taxpayer who is
12        primarily engaged in manufacturing, or in mining coal
13        or fluorite, or in retailing, or was placed in service
14        on or after July 1, 2006 in a River Edge Redevelopment
15        Zone established pursuant to the River Edge
16        Redevelopment Zone Act; and
17            (E) has not previously been used in Illinois in
18        such a manner and by such a person as would qualify for
19        the credit provided by this subsection (e) or
20        subsection (f).
21        (3) For purposes of this subsection (e),
22    "manufacturing" means the material staging and production
23    of tangible personal property by procedures commonly
24    regarded as manufacturing, processing, fabrication, or
25    assembling which changes some existing material into new
26    shapes, new qualities, or new combinations. For purposes of

 

 

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1    this subsection (e) the term "mining" shall have the same
2    meaning as the term "mining" in Section 613(c) of the
3    Internal Revenue Code. For purposes of this subsection (e),
4    the term "retailing" means the sale of tangible personal
5    property for use or consumption and not for resale, or
6    services rendered in conjunction with the sale of tangible
7    personal property for use or consumption and not for
8    resale. For purposes of this subsection (e), "tangible
9    personal property" has the same meaning as when that term
10    is used in the Retailers' Occupation Tax Act, and, for
11    taxable years ending after December 31, 2008, does not
12    include the generation, transmission, or distribution of
13    electricity.
14        (4) The basis of qualified property shall be the basis
15    used to compute the depreciation deduction for federal
16    income tax purposes.
17        (5) If the basis of the property for federal income tax
18    depreciation purposes is increased after it has been placed
19    in service in Illinois by the taxpayer, the amount of such
20    increase shall be deemed property placed in service on the
21    date of such increase in basis.
22        (6) The term "placed in service" shall have the same
23    meaning as under Section 46 of the Internal Revenue Code.
24        (7) If during any taxable year, any property ceases to
25    be qualified property in the hands of the taxpayer within
26    48 months after being placed in service, or the situs of

 

 

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1    any qualified property is moved outside Illinois within 48
2    months after being placed in service, the Personal Property
3    Tax Replacement Income Tax for such taxable year shall be
4    increased. Such increase shall be determined by (i)
5    recomputing the investment credit which would have been
6    allowed for the year in which credit for such property was
7    originally allowed by eliminating such property from such
8    computation and, (ii) subtracting such recomputed credit
9    from the amount of credit previously allowed. For the
10    purposes of this paragraph (7), a reduction of the basis of
11    qualified property resulting from a redetermination of the
12    purchase price shall be deemed a disposition of qualified
13    property to the extent of such reduction.
14        (8) Unless the investment credit is extended by law,
15    the basis of qualified property shall not include costs
16    incurred after December 31, 2018, except for costs incurred
17    pursuant to a binding contract entered into on or before
18    December 31, 2018.
19        (9) Each taxable year ending before December 31, 2000,
20    a partnership may elect to pass through to its partners the
21    credits to which the partnership is entitled under this
22    subsection (e) for the taxable year. A partner may use the
23    credit allocated to him or her under this paragraph only
24    against the tax imposed in subsections (c) and (d) of this
25    Section. If the partnership makes that election, those
26    credits shall be allocated among the partners in the

 

 

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1    partnership in accordance with the rules set forth in
2    Section 704(b) of the Internal Revenue Code, and the rules
3    promulgated under that Section, and the allocated amount of
4    the credits shall be allowed to the partners for that
5    taxable year. The partnership shall make this election on
6    its Personal Property Tax Replacement Income Tax return for
7    that taxable year. The election to pass through the credits
8    shall be irrevocable.
9        For taxable years ending on or after December 31, 2000,
10    a partner that qualifies its partnership for a subtraction
11    under subparagraph (I) of paragraph (2) of subsection (d)
12    of Section 203 or a shareholder that qualifies a Subchapter
13    S corporation for a subtraction under subparagraph (S) of
14    paragraph (2) of subsection (b) of Section 203 shall be
15    allowed a credit under this subsection (e) equal to its
16    share of the credit earned under this subsection (e) during
17    the taxable year by the partnership or Subchapter S
18    corporation, determined in accordance with the
19    determination of income and distributive share of income
20    under Sections 702 and 704 and Subchapter S of the Internal
21    Revenue Code. This paragraph is exempt from the provisions
22    of Section 250.
23    (f) Investment credit; Enterprise Zone; River Edge
24Redevelopment Zone.
25        (1) A taxpayer shall be allowed a credit against the
26    tax imposed by subsections (a) and (b) of this Section for

 

 

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1    investment in qualified property which is placed in service
2    in an Enterprise Zone created pursuant to the Illinois
3    Enterprise Zone Act or, for property placed in service on
4    or after July 1, 2006, a River Edge Redevelopment Zone
5    established pursuant to the River Edge Redevelopment Zone
6    Act. For partners, shareholders of Subchapter S
7    corporations, and owners of limited liability companies,
8    if the liability company is treated as a partnership for
9    purposes of federal and State income taxation, there shall
10    be allowed a credit under this subsection (f) to be
11    determined in accordance with the determination of income
12    and distributive share of income under Sections 702 and 704
13    and Subchapter S of the Internal Revenue Code. The credit
14    shall be .5% of the basis for such property. The credit
15    shall be available only in the taxable year in which the
16    property is placed in service in the Enterprise Zone or
17    River Edge Redevelopment Zone and shall not be allowed to
18    the extent that it would reduce a taxpayer's liability for
19    the tax imposed by subsections (a) and (b) of this Section
20    to below zero. For tax years ending on or after December
21    31, 1985, the credit shall be allowed for the tax year in
22    which the property is placed in service, or, if the amount
23    of the credit exceeds the tax liability for that year,
24    whether it exceeds the original liability or the liability
25    as later amended, such excess may be carried forward and
26    applied to the tax liability of the 5 taxable years

 

 

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1    following the excess credit year. The credit shall be
2    applied to the earliest year for which there is a
3    liability. If there is credit from more than one tax year
4    that is available to offset a liability, the credit
5    accruing first in time shall be applied first.
6        (2) The term qualified property means property which:
7            (A) is tangible, whether new or used, including
8        buildings and structural components of buildings;
9            (B) is depreciable pursuant to Section 167 of the
10        Internal Revenue Code, except that "3-year property"
11        as defined in Section 168(c)(2)(A) of that Code is not
12        eligible for the credit provided by this subsection
13        (f);
14            (C) is acquired by purchase as defined in Section
15        179(d) of the Internal Revenue Code;
16            (D) is used in the Enterprise Zone or River Edge
17        Redevelopment Zone by the taxpayer; and
18            (E) has not been previously used in Illinois in
19        such a manner and by such a person as would qualify for
20        the credit provided by this subsection (f) or
21        subsection (e).
22        (3) The basis of qualified property shall be the basis
23    used to compute the depreciation deduction for federal
24    income tax purposes.
25        (4) If the basis of the property for federal income tax
26    depreciation purposes is increased after it has been placed

 

 

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1    in service in the Enterprise Zone or River Edge
2    Redevelopment Zone by the taxpayer, the amount of such
3    increase shall be deemed property placed in service on the
4    date of such increase in basis.
5        (5) The term "placed in service" shall have the same
6    meaning as under Section 46 of the Internal Revenue Code.
7        (6) If during any taxable year, any property ceases to
8    be qualified property in the hands of the taxpayer within
9    48 months after being placed in service, or the situs of
10    any qualified property is moved outside the Enterprise Zone
11    or River Edge Redevelopment Zone within 48 months after
12    being placed in service, the tax imposed under subsections
13    (a) and (b) of this Section for such taxable year shall be
14    increased. Such increase shall be determined by (i)
15    recomputing the investment credit which would have been
16    allowed for the year in which credit for such property was
17    originally allowed by eliminating such property from such
18    computation, and (ii) subtracting such recomputed credit
19    from the amount of credit previously allowed. For the
20    purposes of this paragraph (6), a reduction of the basis of
21    qualified property resulting from a redetermination of the
22    purchase price shall be deemed a disposition of qualified
23    property to the extent of such reduction.
24        (7) There shall be allowed an additional credit equal
25    to 0.5% of the basis of qualified property placed in
26    service during the taxable year in a River Edge

 

 

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1    Redevelopment Zone, provided such property is placed in
2    service on or after July 1, 2006, and the taxpayer's base
3    employment within Illinois has increased by 1% or more over
4    the preceding year as determined by the taxpayer's
5    employment records filed with the Illinois Department of
6    Employment Security. Taxpayers who are new to Illinois
7    shall be deemed to have met the 1% growth in base
8    employment for the first year in which they file employment
9    records with the Illinois Department of Employment
10    Security. If, in any year, the increase in base employment
11    within Illinois over the preceding year is less than 1%,
12    the additional credit shall be limited to that percentage
13    times a fraction, the numerator of which is 0.5% and the
14    denominator of which is 1%, but shall not exceed 0.5%.
15        (8) For taxable years beginning on or after January 1,
16    2021, there shall be allowed an Enterprise Zone
17    construction jobs credit against the taxes imposed under
18    subsections (a) and (b) of this Section as provided in
19    Section 13 of the Illinois Enterprise Zone Act.
20        The credit or credits may not reduce the taxpayer's
21    liability to less than zero. If the amount of the credit or
22    credits exceeds the taxpayer's liability, the excess may be
23    carried forward and applied against the taxpayer's
24    liability in succeeding calendar years in the same manner
25    provided under paragraph (4) of Section 211 of this Act.
26    The credit or credits shall be applied to the earliest year

 

 

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1    for which there is a tax liability. If there are credits
2    from more than one taxable year that are available to
3    offset a liability, the earlier credit shall be applied
4    first.
5        For partners, shareholders of Subchapter S
6    corporations, and owners of limited liability companies,
7    if the liability company is treated as a partnership for
8    the purposes of federal and State income taxation, there
9    shall be allowed a credit under this Section to be
10    determined in accordance with the determination of income
11    and distributive share of income under Sections 702 and 704
12    and Subchapter S of the Internal Revenue Code.
13        The total aggregate amount of credits awarded under the
14    Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
15    amendatory Act of the 101st General Assembly) shall not
16    exceed $20,000,000 in any State fiscal year.
17        This paragraph (8) is exempt from the provisions of
18    Section 250.
19    (g) (Blank).
20    (h) Investment credit; High Impact Business.
21        (1) Subject to subsections (b) and (b-5) of Section 5.5
22    of the Illinois Enterprise Zone Act, a taxpayer shall be
23    allowed a credit against the tax imposed by subsections (a)
24    and (b) of this Section for investment in qualified
25    property which is placed in service by a Department of
26    Commerce and Economic Opportunity designated High Impact

 

 

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1    Business. The credit shall be .5% of the basis for such
2    property. The credit shall not be available (i) until the
3    minimum investments in qualified property set forth in
4    subdivision (a)(3)(A) of Section 5.5 of the Illinois
5    Enterprise Zone Act have been satisfied or (ii) until the
6    time authorized in subsection (b-5) of the Illinois
7    Enterprise Zone Act for entities designated as High Impact
8    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
9    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
10    Act, and shall not be allowed to the extent that it would
11    reduce a taxpayer's liability for the tax imposed by
12    subsections (a) and (b) of this Section to below zero. The
13    credit applicable to such investments shall be taken in the
14    taxable year in which such investments have been completed.
15    The credit for additional investments beyond the minimum
16    investment by a designated high impact business authorized
17    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
18    Enterprise Zone Act shall be available only in the taxable
19    year in which the property is placed in service and shall
20    not be allowed to the extent that it would reduce a
21    taxpayer's liability for the tax imposed by subsections (a)
22    and (b) of this Section to below zero. For tax years ending
23    on or after December 31, 1987, the credit shall be allowed
24    for the tax year in which the property is placed in
25    service, or, if the amount of the credit exceeds the tax
26    liability for that year, whether it exceeds the original

 

 

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1    liability or the liability as later amended, such excess
2    may be carried forward and applied to the tax liability of
3    the 5 taxable years following the excess credit year. The
4    credit shall be applied to the earliest year for which
5    there is a liability. If there is credit from more than one
6    tax year that is available to offset a liability, the
7    credit accruing first in time shall be applied first.
8        Changes made in this subdivision (h)(1) by Public Act
9    88-670 restore changes made by Public Act 85-1182 and
10    reflect existing law.
11        (2) The term qualified property means property which:
12            (A) is tangible, whether new or used, including
13        buildings and structural components of buildings;
14            (B) is depreciable pursuant to Section 167 of the
15        Internal Revenue Code, except that "3-year property"
16        as defined in Section 168(c)(2)(A) of that Code is not
17        eligible for the credit provided by this subsection
18        (h);
19            (C) is acquired by purchase as defined in Section
20        179(d) of the Internal Revenue Code; and
21            (D) is not eligible for the Enterprise Zone
22        Investment Credit provided by subsection (f) of this
23        Section.
24        (3) The basis of qualified property shall be the basis
25    used to compute the depreciation deduction for federal
26    income tax purposes.

 

 

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1        (4) If the basis of the property for federal income tax
2    depreciation purposes is increased after it has been placed
3    in service in a federally designated Foreign Trade Zone or
4    Sub-Zone located in Illinois by the taxpayer, the amount of
5    such increase shall be deemed property placed in service on
6    the date of such increase in basis.
7        (5) The term "placed in service" shall have the same
8    meaning as under Section 46 of the Internal Revenue Code.
9        (6) If during any taxable year ending on or before
10    December 31, 1996, any property ceases to be qualified
11    property in the hands of the taxpayer within 48 months
12    after being placed in service, or the situs of any
13    qualified property is moved outside Illinois within 48
14    months after being placed in service, the tax imposed under
15    subsections (a) and (b) of this Section for such taxable
16    year shall be increased. Such increase shall be determined
17    by (i) recomputing the investment credit which would have
18    been allowed for the year in which credit for such property
19    was originally allowed by eliminating such property from
20    such computation, and (ii) subtracting such recomputed
21    credit from the amount of credit previously allowed. For
22    the purposes of this paragraph (6), a reduction of the
23    basis of qualified property resulting from a
24    redetermination of the purchase price shall be deemed a
25    disposition of qualified property to the extent of such
26    reduction.

 

 

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1        (7) Beginning with tax years ending after December 31,
2    1996, if a taxpayer qualifies for the credit under this
3    subsection (h) and thereby is granted a tax abatement and
4    the taxpayer relocates its entire facility in violation of
5    the explicit terms and length of the contract under Section
6    18-183 of the Property Tax Code, the tax imposed under
7    subsections (a) and (b) of this Section shall be increased
8    for the taxable year in which the taxpayer relocated its
9    facility by an amount equal to the amount of credit
10    received by the taxpayer under this subsection (h).
11    (h-5) High Impact Business construction constructions jobs
12credit. For taxable years beginning on or after January 1,
132021, there shall also be allowed a High Impact Business
14construction jobs credit against the tax imposed under
15subsections (a) and (b) of this Section as provided in
16subsections (i) and (j) of Section 5.5 of the Illinois
17Enterprise Zone Act.
18    The credit or credits may not reduce the taxpayer's
19liability to less than zero. If the amount of the credit or
20credits exceeds the taxpayer's liability, the excess may be
21carried forward and applied against the taxpayer's liability in
22succeeding calendar years in the manner provided under
23paragraph (4) of Section 211 of this Act. The credit or credits
24shall be applied to the earliest year for which there is a tax
25liability. If there are credits from more than one taxable year
26that are available to offset a liability, the earlier credit

 

 

HB5844- 26 -LRB101 22177 HLH 73205 b

1shall be applied first.
2    For partners, shareholders of Subchapter S corporations,
3and owners of limited liability companies, if the liability
4company is treated as a partnership for the purposes of federal
5and State income taxation, there shall be allowed a credit
6under this Section to be determined in accordance with the
7determination of income and distributive share of income under
8Sections 702 and 704 and Subchapter S of the Internal Revenue
9Code.
10    The total aggregate amount of credits awarded under the
11Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
12amendatory Act of the 101st General Assembly) shall not exceed
13$20,000,000 in any State fiscal year.
14    This subsection (h-5) is exempt from the provisions of
15Section 250.
16    (i) Credit for Personal Property Tax Replacement Income
17Tax. For tax years ending prior to December 31, 2003, a credit
18shall be allowed against the tax imposed by subsections (a) and
19(b) of this Section for the tax imposed by subsections (c) and
20(d) of this Section. This credit shall be computed by
21multiplying the tax imposed by subsections (c) and (d) of this
22Section by a fraction, the numerator of which is base income
23allocable to Illinois and the denominator of which is Illinois
24base income, and further multiplying the product by the tax
25rate imposed by subsections (a) and (b) of this Section.
26    Any credit earned on or after December 31, 1986 under this

 

 

HB5844- 27 -LRB101 22177 HLH 73205 b

1subsection which is unused in the year the credit is computed
2because it exceeds the tax liability imposed by subsections (a)
3and (b) for that year (whether it exceeds the original
4liability or the liability as later amended) may be carried
5forward and applied to the tax liability imposed by subsections
6(a) and (b) of the 5 taxable years following the excess credit
7year, provided that no credit may be carried forward to any
8year ending on or after December 31, 2003. This credit shall be
9applied first to the earliest year for which there is a
10liability. If there is a credit under this subsection from more
11than one tax year that is available to offset a liability the
12earliest credit arising under this subsection shall be applied
13first.
14    If, during any taxable year ending on or after December 31,
151986, the tax imposed by subsections (c) and (d) of this
16Section for which a taxpayer has claimed a credit under this
17subsection (i) is reduced, the amount of credit for such tax
18shall also be reduced. Such reduction shall be determined by
19recomputing the credit to take into account the reduced tax
20imposed by subsections (c) and (d). If any portion of the
21reduced amount of credit has been carried to a different
22taxable year, an amended return shall be filed for such taxable
23year to reduce the amount of credit claimed.
24    (j) Training expense credit. Beginning with tax years
25ending on or after December 31, 1986 and prior to December 31,
262003, a taxpayer shall be allowed a credit against the tax

 

 

HB5844- 28 -LRB101 22177 HLH 73205 b

1imposed by subsections (a) and (b) under this Section for all
2amounts paid or accrued, on behalf of all persons employed by
3the taxpayer in Illinois or Illinois residents employed outside
4of Illinois by a taxpayer, for educational or vocational
5training in semi-technical or technical fields or semi-skilled
6or skilled fields, which were deducted from gross income in the
7computation of taxable income. The credit against the tax
8imposed by subsections (a) and (b) shall be 1.6% of such
9training expenses. For partners, shareholders of subchapter S
10corporations, and owners of limited liability companies, if the
11liability company is treated as a partnership for purposes of
12federal and State income taxation, there shall be allowed a
13credit under this subsection (j) to be determined in accordance
14with the determination of income and distributive share of
15income under Sections 702 and 704 and subchapter S of the
16Internal Revenue Code.
17    Any credit allowed under this subsection which is unused in
18the year the credit is earned may be carried forward to each of
19the 5 taxable years following the year for which the credit is
20first computed until it is used. This credit shall be applied
21first to the earliest year for which there is a liability. If
22there is a credit under this subsection from more than one tax
23year that is available to offset a liability, the earliest
24credit arising under this subsection shall be applied first. No
25carryforward credit may be claimed in any tax year ending on or
26after December 31, 2003.

 

 

HB5844- 29 -LRB101 22177 HLH 73205 b

1    (k) Research and development credit. For tax years ending
2after July 1, 1990 and prior to December 31, 2003, and
3beginning again for tax years ending on or after December 31,
42004, and ending prior to January 1, 2027, a taxpayer shall be
5allowed a credit against the tax imposed by subsections (a) and
6(b) of this Section for increasing research activities in this
7State. The credit allowed against the tax imposed by
8subsections (a) and (b) shall be equal to 6 1/2% of the
9qualifying expenditures for increasing research activities in
10this State. For partners, shareholders of subchapter S
11corporations, and owners of limited liability companies, if the
12liability company is treated as a partnership for purposes of
13federal and State income taxation, there shall be allowed a
14credit under this subsection to be determined in accordance
15with the determination of income and distributive share of
16income under Sections 702 and 704 and subchapter S of the
17Internal Revenue Code.
18    For purposes of this subsection, "qualifying expenditures"
19means the qualifying expenditures as defined for the federal
20credit for increasing research activities which would be
21allowable under Section 41 of the Internal Revenue Code and
22which are conducted in this State, "qualifying expenditures for
23increasing research activities in this State" means the excess
24of qualifying expenditures for the taxable year in which
25incurred over qualifying expenditures for the base period,
26"qualifying expenditures for the base period" means the average

 

 

HB5844- 30 -LRB101 22177 HLH 73205 b

1of the qualifying expenditures for each year in the base
2period, and "base period" means the 3 taxable years immediately
3preceding the taxable year for which the determination is being
4made.
5    Any credit in excess of the tax liability for the taxable
6year may be carried forward. A taxpayer may elect to have the
7unused credit shown on its final completed return carried over
8as a credit against the tax liability for the following 5
9taxable years or until it has been fully used, whichever occurs
10first; provided that no credit earned in a tax year ending
11prior to December 31, 2003 may be carried forward to any year
12ending on or after December 31, 2003.
13    If an unused credit is carried forward to a given year from
142 or more earlier years, that credit arising in the earliest
15year will be applied first against the tax liability for the
16given year. If a tax liability for the given year still
17remains, the credit from the next earliest year will then be
18applied, and so on, until all credits have been used or no tax
19liability for the given year remains. Any remaining unused
20credit or credits then will be carried forward to the next
21following year in which a tax liability is incurred, except
22that no credit can be carried forward to a year which is more
23than 5 years after the year in which the expense for which the
24credit is given was incurred.
25    No inference shall be drawn from Public Act 91-644 this
26amendatory Act of the 91st General Assembly in construing this

 

 

HB5844- 31 -LRB101 22177 HLH 73205 b

1Section for taxable years beginning before January 1, 1999.
2    It is the intent of the General Assembly that the research
3and development credit under this subsection (k) shall apply
4continuously for all tax years ending on or after December 31,
52004 and ending prior to January 1, 2027, including, but not
6limited to, the period beginning on January 1, 2016 and ending
7on July 6, 2017 (the effective date of Public Act 100-22) this
8amendatory Act of the 100th General Assembly. All actions taken
9in reliance on the continuation of the credit under this
10subsection (k) by any taxpayer are hereby validated.
11    (l) Environmental Remediation Tax Credit.
12        (i) For tax years ending after December 31, 1997 and on
13    or before December 31, 2001, a taxpayer shall be allowed a
14    credit against the tax imposed by subsections (a) and (b)
15    of this Section for certain amounts paid for unreimbursed
16    eligible remediation costs, as specified in this
17    subsection. For purposes of this Section, "unreimbursed
18    eligible remediation costs" means costs approved by the
19    Illinois Environmental Protection Agency ("Agency") under
20    Section 58.14 of the Environmental Protection Act that were
21    paid in performing environmental remediation at a site for
22    which a No Further Remediation Letter was issued by the
23    Agency and recorded under Section 58.10 of the
24    Environmental Protection Act. The credit must be claimed
25    for the taxable year in which Agency approval of the
26    eligible remediation costs is granted. The credit is not

 

 

HB5844- 32 -LRB101 22177 HLH 73205 b

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

 

 

HB5844- 33 -LRB101 22177 HLH 73205 b

1    a maximum total of $150,000 per site. For partners and
2    shareholders of subchapter S corporations, there shall be
3    allowed a credit under this subsection to be determined in
4    accordance with the determination of income and
5    distributive share of income under Sections 702 and 704 and
6    subchapter S of the Internal Revenue Code.
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. The
11    term "unused credit" does not include any amounts of
12    unreimbursed eligible remediation costs in excess of the
13    maximum credit per site authorized under paragraph (i).
14    This credit shall be applied first to the earliest year for
15    which there is a liability. If there is a credit under this
16    subsection from more than one tax year that is available to
17    offset a liability, the earliest credit arising under this
18    subsection shall be applied first. A credit allowed under
19    this subsection may be sold to a buyer as part of a sale of
20    all or part of the remediation site for which the credit
21    was granted. The purchaser of a remediation site and the
22    tax credit shall succeed to the unused credit and remaining
23    carry-forward period of the seller. To perfect the
24    transfer, the assignor shall record the transfer in the
25    chain of title for the site and provide written notice to
26    the Director of the Illinois Department of Revenue of the

 

 

HB5844- 34 -LRB101 22177 HLH 73205 b

1    assignor's intent to sell the remediation site and the
2    amount of the tax credit to be transferred as a portion of
3    the sale. In no event may a credit be transferred to any
4    taxpayer if the taxpayer or a related party would not be
5    eligible under the provisions of subsection (i).
6        (iii) For purposes of this Section, the term "site"
7    shall have the same meaning as under Section 58.2 of the
8    Environmental Protection Act.
9    (m) Education expense credit. Beginning with tax years
10ending after December 31, 1999, a taxpayer who is the custodian
11of one or more qualifying pupils shall be allowed a credit
12against the tax imposed by subsections (a) and (b) of this
13Section for qualified education expenses incurred on behalf of
14the qualifying pupils. The credit shall be equal to 25% of
15qualified education expenses, but in no event may the total
16credit under this subsection claimed by a family that is the
17custodian of qualifying pupils exceed (i) $500 for tax years
18ending prior to December 31, 2017, and (ii) $750 for tax years
19ending on or after December 31, 2017 and ending prior to
20December 31, 2020, and (iii) $2,500 for tax years ending on or
21after December 31, 2020. In no event shall a credit under this
22subsection reduce the taxpayer's liability under this Act to
23less than zero. Notwithstanding any other provision of law, for
24taxable years beginning on or after January 1, 2017, no
25taxpayer may claim a credit under this subsection (m) if the
26taxpayer's adjusted gross income for the taxable year exceeds

 

 

HB5844- 35 -LRB101 22177 HLH 73205 b

1(i) $500,000, in the case of spouses filing a joint federal tax
2return or (ii) $250,000, in the case of all other taxpayers.
3This subsection is exempt from the provisions of Section 250 of
4this Act.
5    For purposes of this subsection:
6    "Qualifying pupils" means individuals who (i) are
7residents of the State of Illinois, (ii) are under the age of
821 at the close of the school year for which a credit is
9sought, and (iii) during the school year for which a credit is
10sought were full-time pupils enrolled in a kindergarten through
11twelfth grade education program at any school, as defined in
12this subsection.
13    "Qualified education expense" means the amount incurred on
14behalf of a qualifying pupil in excess of $250 for tuition,
15book fees, and lab fees at the school in which the pupil is
16enrolled during the regular school year.
17    "School" means any public or nonpublic elementary or
18secondary school in Illinois that is in compliance with Title
19VI of the Civil Rights Act of 1964 and attendance at which
20satisfies the requirements of Section 26-1 of the School Code,
21except that nothing shall be construed to require a child to
22attend any particular public or nonpublic school to qualify for
23the credit under this Section.
24    "Custodian" means, with respect to qualifying pupils, an
25Illinois resident who is a parent, the parents, a legal
26guardian, or the legal guardians of the qualifying pupils.

 

 

HB5844- 36 -LRB101 22177 HLH 73205 b

1    (n) River Edge Redevelopment Zone site remediation tax
2credit.
3        (i) For tax years ending on or after December 31, 2006,
4    a taxpayer shall be allowed a credit against the tax
5    imposed by subsections (a) and (b) of this Section for
6    certain amounts paid for unreimbursed eligible remediation
7    costs, as specified in this subsection. For purposes of
8    this Section, "unreimbursed eligible remediation costs"
9    means costs approved by the Illinois Environmental
10    Protection Agency ("Agency") under Section 58.14a of the
11    Environmental Protection Act that were paid in performing
12    environmental remediation at a site within a River Edge
13    Redevelopment Zone for which a No Further Remediation
14    Letter was issued by the Agency and recorded under Section
15    58.10 of the Environmental Protection Act. The credit must
16    be claimed for the taxable year in which Agency approval of
17    the eligible remediation costs is granted. The credit is
18    not available to any taxpayer if the taxpayer or any
19    related party caused or contributed to, in any material
20    respect, a release of regulated substances on, in, or under
21    the site that was identified and addressed by the remedial
22    action pursuant to the Site Remediation Program of the
23    Environmental Protection Act. Determinations as to credit
24    availability for purposes of this Section shall be made
25    consistent with rules adopted by the Pollution Control
26    Board pursuant to the Illinois Administrative Procedure

 

 

HB5844- 37 -LRB101 22177 HLH 73205 b

1    Act for the administration and enforcement of Section 58.9
2    of the Environmental Protection Act. For purposes of this
3    Section, "taxpayer" includes a person whose tax attributes
4    the taxpayer has succeeded to under Section 381 of the
5    Internal Revenue Code and "related party" includes the
6    persons disallowed a deduction for losses by paragraphs
7    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
8    Code by virtue of being a related taxpayer, as well as any
9    of its partners. The credit allowed against the tax imposed
10    by subsections (a) and (b) shall be equal to 25% of the
11    unreimbursed eligible remediation costs in excess of
12    $100,000 per site.
13        (ii) A credit allowed under this subsection that is
14    unused in the year the credit is earned may be carried
15    forward to each of the 5 taxable years following the year
16    for which the credit is first earned until it is used. This
17    credit shall be applied first to the earliest year for
18    which there is a liability. If there is a credit under this
19    subsection from more than one tax year that is available to
20    offset a liability, the earliest credit arising under this
21    subsection shall be applied first. A credit allowed under
22    this subsection may be sold to a buyer as part of a sale of
23    all or part of the remediation site for which the credit
24    was granted. The purchaser of a remediation site and the
25    tax credit shall succeed to the unused credit and remaining
26    carry-forward period of the seller. To perfect the

 

 

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1    transfer, the assignor shall record the transfer in the
2    chain of title for the site and provide written notice to
3    the Director of the Illinois Department of Revenue of the
4    assignor's intent to sell the remediation site and the
5    amount of the tax credit to be transferred as a portion of
6    the sale. In no event may a credit be transferred to any
7    taxpayer if the taxpayer or a related party would not be
8    eligible under the provisions of subsection (i).
9        (iii) For purposes of this Section, the term "site"
10    shall have the same meaning as under Section 58.2 of the
11    Environmental Protection Act.
12    (o) For each of taxable years during the Compassionate Use
13of Medical Cannabis Program, a surcharge is imposed on all
14taxpayers on income arising from the sale or exchange of
15capital assets, depreciable business property, real property
16used in the trade or business, and Section 197 intangibles of
17an organization registrant under the Compassionate Use of
18Medical Cannabis Program Act. The amount of the surcharge is
19equal to the amount of federal income tax liability for the
20taxable year attributable to those sales and exchanges. The
21surcharge imposed does not apply if:
22        (1) the medical cannabis cultivation center
23    registration, medical cannabis dispensary registration, or
24    the property of a registration is transferred as a result
25    of any of the following:
26            (A) bankruptcy, a receivership, or a debt

 

 

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1        adjustment initiated by or against the initial
2        registration or the substantial owners of the initial
3        registration;
4            (B) cancellation, revocation, or termination of
5        any registration by the Illinois Department of Public
6        Health;
7            (C) a determination by the Illinois Department of
8        Public Health that transfer of the registration is in
9        the best interests of Illinois qualifying patients as
10        defined by the Compassionate Use of Medical Cannabis
11        Program Act;
12            (D) the death of an owner of the equity interest in
13        a registrant;
14            (E) the acquisition of a controlling interest in
15        the stock or substantially all of the assets of a
16        publicly traded company;
17            (F) a transfer by a parent company to a wholly
18        owned subsidiary; or
19            (G) the transfer or sale to or by one person to
20        another person where both persons were initial owners
21        of the registration when the registration was issued;
22        or
23        (2) the cannabis cultivation center registration,
24    medical cannabis dispensary registration, or the
25    controlling interest in a registrant's property is
26    transferred in a transaction to lineal descendants in which

 

 

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1    no gain or loss is recognized or as a result of a
2    transaction in accordance with Section 351 of the Internal
3    Revenue Code in which no gain or loss is recognized.
4(Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31,
5eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19;
6revised 9-17-19.)
 
7    (Text of Section after amendment by P.A. 101-8)
8    Sec. 201. Tax imposed.
9    (a) In general. A tax measured by net income is hereby
10imposed on every individual, corporation, trust and estate for
11each taxable year ending after July 31, 1969 on the privilege
12of earning or receiving income in or as a resident of this
13State. Such tax shall be in addition to all other occupation or
14privilege taxes imposed by this State or by any municipal
15corporation or political subdivision thereof.
16    (b) Rates. The tax imposed by subsection (a) of this
17Section shall be determined as follows, except as adjusted by
18subsection (d-1):
19        (1) In the case of an individual, trust or estate, for
20    taxable years ending prior to July 1, 1989, an amount equal
21    to 2 1/2% of the taxpayer's net income for the taxable
22    year.
23        (2) In the case of an individual, trust or estate, for
24    taxable years beginning prior to July 1, 1989 and ending
25    after June 30, 1989, an amount equal to the sum of (i) 2

 

 

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1    1/2% of the taxpayer's net income for the period prior to
2    July 1, 1989, as calculated under Section 202.3, and (ii)
3    3% of the taxpayer's net income for the period after June
4    30, 1989, as calculated under Section 202.3.
5        (3) In the case of an individual, trust or estate, for
6    taxable years beginning after June 30, 1989, and ending
7    prior to January 1, 2011, an amount equal to 3% of the
8    taxpayer's net income for the taxable year.
9        (4) In the case of an individual, trust, or estate, for
10    taxable years beginning prior to January 1, 2011, and
11    ending after December 31, 2010, an amount equal to the sum
12    of (i) 3% of the taxpayer's net income for the period prior
13    to January 1, 2011, as calculated under Section 202.5, and
14    (ii) 5% of the taxpayer's net income for the period after
15    December 31, 2010, as calculated under Section 202.5.
16        (5) In the case of an individual, trust, or estate, for
17    taxable years beginning on or after January 1, 2011, and
18    ending prior to January 1, 2015, an amount equal to 5% of
19    the taxpayer's net income for the taxable year.
20        (5.1) In the case of an individual, trust, or estate,
21    for taxable years beginning prior to January 1, 2015, and
22    ending after December 31, 2014, an amount equal to the sum
23    of (i) 5% of the taxpayer's net income for the period prior
24    to January 1, 2015, as calculated under Section 202.5, and
25    (ii) 3.75% of the taxpayer's net income for the period
26    after December 31, 2014, as calculated under Section 202.5.

 

 

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1        (5.2) In the case of an individual, trust, or estate,
2    for taxable years beginning on or after January 1, 2015,
3    and ending prior to July 1, 2017, an amount equal to 3.75%
4    of the taxpayer's net income for the taxable year.
5        (5.3) In the case of an individual, trust, or estate,
6    for taxable years beginning prior to July 1, 2017, and
7    ending after June 30, 2017, an amount equal to the sum of
8    (i) 3.75% of the taxpayer's net income for the period prior
9    to July 1, 2017, as calculated under Section 202.5, and
10    (ii) 4.95% of the taxpayer's net income for the period
11    after June 30, 2017, as calculated under Section 202.5.
12        (5.4) In the case of an individual, trust, or estate,
13    for taxable years beginning on or after July 1, 2017 and
14    beginning prior to January 1, 2021, an amount equal to
15    4.95% of the taxpayer's net income for the taxable year.
16        (5.5) In the case of an individual, trust, or estate,
17    for taxable years beginning on or after January 1, 2021, an
18    amount calculated under the rate structure set forth in
19    Section 201.1.
20        (6) In the case of a corporation, for taxable years
21    ending prior to July 1, 1989, an amount equal to 4% of the
22    taxpayer's net income for the taxable year.
23        (7) In the case of a corporation, for taxable years
24    beginning prior to July 1, 1989 and ending after June 30,
25    1989, an amount equal to the sum of (i) 4% of the
26    taxpayer's net income for the period prior to July 1, 1989,

 

 

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1    as calculated under Section 202.3, and (ii) 4.8% of the
2    taxpayer's net income for the period after June 30, 1989,
3    as calculated under Section 202.3.
4        (8) In the case of a corporation, for taxable years
5    beginning after June 30, 1989, and ending prior to January
6    1, 2011, an amount equal to 4.8% of the taxpayer's net
7    income for the taxable year.
8        (9) In the case of a corporation, for taxable years
9    beginning prior to January 1, 2011, and ending after
10    December 31, 2010, an amount equal to the sum of (i) 4.8%
11    of the taxpayer's net income for the period prior to
12    January 1, 2011, as calculated under Section 202.5, and
13    (ii) 7% of the taxpayer's net income for the period after
14    December 31, 2010, as calculated under Section 202.5.
15        (10) In the case of a corporation, for taxable years
16    beginning on or after January 1, 2011, and ending prior to
17    January 1, 2015, an amount equal to 7% of the taxpayer's
18    net income for the taxable year.
19        (11) In the case of a corporation, for taxable years
20    beginning prior to January 1, 2015, and ending after
21    December 31, 2014, an amount equal to the sum of (i) 7% of
22    the taxpayer's net income for the period prior to January
23    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
24    of the taxpayer's net income for the period after December
25    31, 2014, as calculated under Section 202.5.
26        (12) In the case of a corporation, for taxable years

 

 

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1    beginning on or after January 1, 2015, and ending prior to
2    July 1, 2017, an amount equal to 5.25% of the taxpayer's
3    net income for the taxable year.
4        (13) In the case of a corporation, for taxable years
5    beginning prior to July 1, 2017, and ending after June 30,
6    2017, an amount equal to the sum of (i) 5.25% of the
7    taxpayer's net income for the period prior to July 1, 2017,
8    as calculated under Section 202.5, and (ii) 7% of the
9    taxpayer's net income for the period after June 30, 2017,
10    as calculated under Section 202.5.
11        (14) In the case of a corporation, for taxable years
12    beginning on or after July 1, 2017 and beginning prior to
13    January 1, 2021, an amount equal to 7% of the taxpayer's
14    net income for the taxable year.
15        (15) In the case of a corporation, for taxable years
16    beginning on or after January 1, 2021, an amount equal to
17    7.99% of the taxpayer's net income for the taxable year.
18    The rates under this subsection (b) are subject to the
19provisions of Section 201.5.
20    (b-5) Surcharge; sale or exchange of assets, properties,
21and intangibles of organization gaming licensees. For each of
22taxable years 2019 through 2027, a surcharge is imposed on all
23taxpayers on income arising from the sale or exchange of
24capital assets, depreciable business property, real property
25used in the trade or business, and Section 197 intangibles (i)
26of an organization licensee under the Illinois Horse Racing Act

 

 

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1of 1975 and (ii) of an organization gaming licensee under the
2Illinois Gambling Act. The amount of the surcharge is equal to
3the amount of federal income tax liability for the taxable year
4attributable to those sales and exchanges. The surcharge
5imposed shall not apply if:
6        (1) the organization gaming license, organization
7    license, or racetrack property is transferred as a result
8    of any of the following:
9            (A) bankruptcy, a receivership, or a debt
10        adjustment initiated by or against the initial
11        licensee or the substantial owners of the initial
12        licensee;
13            (B) cancellation, revocation, or termination of
14        any such license by the Illinois Gaming Board or the
15        Illinois Racing Board;
16            (C) a determination by the Illinois Gaming Board
17        that transfer of the license is in the best interests
18        of Illinois gaming;
19            (D) the death of an owner of the equity interest in
20        a licensee;
21            (E) the acquisition of a controlling interest in
22        the stock or substantially all of the assets of a
23        publicly traded company;
24            (F) a transfer by a parent company to a wholly
25        owned subsidiary; or
26            (G) the transfer or sale to or by one person to

 

 

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1        another person where both persons were initial owners
2        of the license when the license was issued; or
3        (2) the controlling interest in the organization
4    gaming license, organization license, or racetrack
5    property is transferred in a transaction to lineal
6    descendants in which no gain or loss is recognized or as a
7    result of a transaction in accordance with Section 351 of
8    the Internal Revenue Code in which no gain or loss is
9    recognized; or
10        (3) live horse racing was not conducted in 2010 at a
11    racetrack located within 3 miles of the Mississippi River
12    under a license issued pursuant to the Illinois Horse
13    Racing Act of 1975.
14    The transfer of an organization gaming license,
15organization license, or racetrack property by a person other
16than the initial licensee to receive the organization gaming
17license is not subject to a surcharge. The Department shall
18adopt rules necessary to implement and administer this
19subsection.
20    (c) Personal Property Tax Replacement Income Tax.
21Beginning on July 1, 1979 and thereafter, in addition to such
22income tax, there is also hereby imposed the Personal Property
23Tax Replacement Income Tax measured by net income on every
24corporation (including Subchapter S corporations), partnership
25and trust, for each taxable year ending after June 30, 1979.
26Such taxes are imposed on the privilege of earning or receiving

 

 

HB5844- 47 -LRB101 22177 HLH 73205 b

1income in or as a resident of this State. The Personal Property
2Tax Replacement Income Tax shall be in addition to the income
3tax imposed by subsections (a) and (b) of this Section and in
4addition to all other occupation or privilege taxes imposed by
5this State or by any municipal corporation or political
6subdivision thereof.
7    (d) Additional Personal Property Tax Replacement Income
8Tax Rates. The personal property tax replacement income tax
9imposed by this subsection and subsection (c) of this Section
10in the case of a corporation, other than a Subchapter S
11corporation and except as adjusted by subsection (d-1), shall
12be an additional amount equal to 2.85% of such taxpayer's net
13income for the taxable year, except that beginning on January
141, 1981, and thereafter, the rate of 2.85% specified in this
15subsection shall be reduced to 2.5%, and in the case of a
16partnership, trust or a Subchapter S corporation shall be an
17additional amount equal to 1.5% of such taxpayer's net income
18for the taxable year.
19    (d-1) Rate reduction for certain foreign insurers. In the
20case of a foreign insurer, as defined by Section 35A-5 of the
21Illinois Insurance Code, whose state or country of domicile
22imposes on insurers domiciled in Illinois a retaliatory tax
23(excluding any insurer whose premiums from reinsurance assumed
24are 50% or more of its total insurance premiums as determined
25under paragraph (2) of subsection (b) of Section 304, except
26that for purposes of this determination premiums from

 

 

HB5844- 48 -LRB101 22177 HLH 73205 b

1reinsurance do not include premiums from inter-affiliate
2reinsurance arrangements), beginning with taxable years ending
3on or after December 31, 1999, the sum of the rates of tax
4imposed by subsections (b) and (d) shall be reduced (but not
5increased) to the rate at which the total amount of tax imposed
6under this Act, net of all credits allowed under this Act,
7shall equal (i) the total amount of tax that would be imposed
8on the foreign insurer's net income allocable to Illinois for
9the taxable year by such foreign insurer's state or country of
10domicile if that net income were subject to all income taxes
11and taxes measured by net income imposed by such foreign
12insurer's state or country of domicile, net of all credits
13allowed or (ii) a rate of zero if no such tax is imposed on such
14income by the foreign insurer's state of domicile. For the
15purposes of this subsection (d-1), an inter-affiliate includes
16a mutual insurer under common management.
17        (1) For the purposes of subsection (d-1), in no event
18    shall the sum of the rates of tax imposed by subsections
19    (b) and (d) be reduced below the rate at which the sum of:
20            (A) the total amount of tax imposed on such foreign
21        insurer under this Act for a taxable year, net of all
22        credits allowed under this Act, plus
23            (B) the privilege tax imposed by Section 409 of the
24        Illinois Insurance Code, the fire insurance company
25        tax imposed by Section 12 of the Fire Investigation
26        Act, and the fire department taxes imposed under

 

 

HB5844- 49 -LRB101 22177 HLH 73205 b

1        Section 11-10-1 of the Illinois Municipal Code,
2    equals 1.25% for taxable years ending prior to December 31,
3    2003, or 1.75% for taxable years ending on or after
4    December 31, 2003, of the net taxable premiums written for
5    the taxable year, as described by subsection (1) of Section
6    409 of the Illinois Insurance Code. This paragraph will in
7    no event increase the rates imposed under subsections (b)
8    and (d).
9        (2) Any reduction in the rates of tax imposed by this
10    subsection shall be applied first against the rates imposed
11    by subsection (b) and only after the tax imposed by
12    subsection (a) net of all credits allowed under this
13    Section other than the credit allowed under subsection (i)
14    has been reduced to zero, against the rates imposed by
15    subsection (d).
16    This subsection (d-1) is exempt from the provisions of
17Section 250.
18    (e) Investment credit. A taxpayer shall be allowed a credit
19against the Personal Property Tax Replacement Income Tax for
20investment in qualified property.
21        (1) A taxpayer shall be allowed a credit equal to .5%
22    of the basis of qualified property placed in service during
23    the taxable year, provided such property is placed in
24    service on or after July 1, 1984. There shall be allowed an
25    additional credit equal to .5% of the basis of qualified
26    property placed in service during the taxable year,

 

 

HB5844- 50 -LRB101 22177 HLH 73205 b

1    provided such property is placed in service on or after
2    July 1, 1986, and the taxpayer's base employment within
3    Illinois has increased by 1% or more over the preceding
4    year as determined by the taxpayer's employment records
5    filed with the Illinois Department of Employment Security.
6    Taxpayers who are new to Illinois shall be deemed to have
7    met the 1% growth in base employment for the first year in
8    which they file employment records with the Illinois
9    Department of Employment Security. The provisions added to
10    this Section by Public Act 85-1200 (and restored by Public
11    Act 87-895) shall be construed as declaratory of existing
12    law and not as a new enactment. If, in any year, the
13    increase in base employment within Illinois over the
14    preceding year is less than 1%, the additional credit shall
15    be limited to that percentage times a fraction, the
16    numerator of which is .5% and the denominator of which is
17    1%, but shall not exceed .5%. The investment credit shall
18    not be allowed to the extent that it would reduce a
19    taxpayer's liability in any tax year below zero, nor may
20    any credit for qualified property be allowed for any year
21    other than the year in which the property was placed in
22    service in Illinois. For tax years ending on or after
23    December 31, 1987, and on or before December 31, 1988, the
24    credit shall be allowed for the tax year in which the
25    property is placed in service, or, if the amount of the
26    credit exceeds the tax liability for that year, whether it

 

 

HB5844- 51 -LRB101 22177 HLH 73205 b

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

 

 

HB5844- 52 -LRB101 22177 HLH 73205 b

1        (2) The term "qualified property" means property
2    which:
3            (A) is tangible, whether new or used, including
4        buildings and structural components of buildings and
5        signs that are real property, but not including land or
6        improvements to real property that are not a structural
7        component of a building such as landscaping, sewer
8        lines, local access roads, fencing, parking lots, and
9        other appurtenances;
10            (B) is depreciable pursuant to Section 167 of the
11        Internal Revenue Code, except that "3-year property"
12        as defined in Section 168(c)(2)(A) of that Code is not
13        eligible for the credit provided by this subsection
14        (e);
15            (C) is acquired by purchase as defined in Section
16        179(d) of the Internal Revenue Code;
17            (D) is used in Illinois by a taxpayer who is
18        primarily engaged in manufacturing, or in mining coal
19        or fluorite, or in retailing, or was placed in service
20        on or after July 1, 2006 in a River Edge Redevelopment
21        Zone established pursuant to the River Edge
22        Redevelopment Zone Act; and
23            (E) has not previously been used in Illinois in
24        such a manner and by such a person as would qualify for
25        the credit provided by this subsection (e) or
26        subsection (f).

 

 

HB5844- 53 -LRB101 22177 HLH 73205 b

1        (3) For purposes of this subsection (e),
2    "manufacturing" means the material staging and production
3    of tangible personal property by procedures commonly
4    regarded as manufacturing, processing, fabrication, or
5    assembling which changes some existing material into new
6    shapes, new qualities, or new combinations. For purposes of
7    this subsection (e) the term "mining" shall have the same
8    meaning as the term "mining" in Section 613(c) of the
9    Internal Revenue Code. For purposes of this subsection (e),
10    the term "retailing" means the sale of tangible personal
11    property for use or consumption and not for resale, or
12    services rendered in conjunction with the sale of tangible
13    personal property for use or consumption and not for
14    resale. For purposes of this subsection (e), "tangible
15    personal property" has the same meaning as when that term
16    is used in the Retailers' Occupation Tax Act, and, for
17    taxable years ending after December 31, 2008, does not
18    include the generation, transmission, or distribution of
19    electricity.
20        (4) The basis of qualified property shall be the basis
21    used to compute the depreciation deduction for federal
22    income tax purposes.
23        (5) If the basis of the property for federal income tax
24    depreciation purposes is increased after it has been placed
25    in service in Illinois by the taxpayer, the amount of such
26    increase shall be deemed property placed in service on the

 

 

HB5844- 54 -LRB101 22177 HLH 73205 b

1    date of such increase in basis.
2        (6) The term "placed in service" shall have the same
3    meaning as under Section 46 of the Internal Revenue Code.
4        (7) If during any taxable year, any property ceases to
5    be qualified property in the hands of the taxpayer within
6    48 months after being placed in service, or the situs of
7    any qualified property is moved outside Illinois within 48
8    months after being placed in service, the Personal Property
9    Tax Replacement Income Tax for such taxable year shall be
10    increased. Such increase shall be determined by (i)
11    recomputing the investment credit which would have been
12    allowed for the year in which credit for such property was
13    originally allowed by eliminating such property from such
14    computation and, (ii) subtracting such recomputed credit
15    from the amount of credit previously allowed. For the
16    purposes of this paragraph (7), a reduction of the basis of
17    qualified property resulting from a redetermination of the
18    purchase price shall be deemed a disposition of qualified
19    property to the extent of such reduction.
20        (8) Unless the investment credit is extended by law,
21    the basis of qualified property shall not include costs
22    incurred after December 31, 2018, except for costs incurred
23    pursuant to a binding contract entered into on or before
24    December 31, 2018.
25        (9) Each taxable year ending before December 31, 2000,
26    a partnership may elect to pass through to its partners the

 

 

HB5844- 55 -LRB101 22177 HLH 73205 b

1    credits to which the partnership is entitled under this
2    subsection (e) for the taxable year. A partner may use the
3    credit allocated to him or her under this paragraph only
4    against the tax imposed in subsections (c) and (d) of this
5    Section. If the partnership makes that election, those
6    credits shall be allocated among the partners in the
7    partnership in accordance with the rules set forth in
8    Section 704(b) of the Internal Revenue Code, and the rules
9    promulgated under that Section, and the allocated amount of
10    the credits shall be allowed to the partners for that
11    taxable year. The partnership shall make this election on
12    its Personal Property Tax Replacement Income Tax return for
13    that taxable year. The election to pass through the credits
14    shall be irrevocable.
15        For taxable years ending on or after December 31, 2000,
16    a partner that qualifies its partnership for a subtraction
17    under subparagraph (I) of paragraph (2) of subsection (d)
18    of Section 203 or a shareholder that qualifies a Subchapter
19    S corporation for a subtraction under subparagraph (S) of
20    paragraph (2) of subsection (b) of Section 203 shall be
21    allowed a credit under this subsection (e) equal to its
22    share of the credit earned under this subsection (e) during
23    the taxable year by the partnership or Subchapter S
24    corporation, determined in accordance with the
25    determination of income and distributive share of income
26    under Sections 702 and 704 and Subchapter S of the Internal

 

 

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1    Revenue Code. This paragraph is exempt from the provisions
2    of Section 250.
3    (f) Investment credit; Enterprise Zone; River Edge
4Redevelopment Zone.
5        (1) A taxpayer shall be allowed a credit against the
6    tax imposed by subsections (a) and (b) of this Section for
7    investment in qualified property which is placed in service
8    in an Enterprise Zone created pursuant to the Illinois
9    Enterprise Zone Act or, for property placed in service on
10    or after July 1, 2006, a River Edge Redevelopment Zone
11    established pursuant to the River Edge Redevelopment Zone
12    Act. For partners, shareholders of Subchapter S
13    corporations, and owners of limited liability companies,
14    if the liability company is treated as a partnership for
15    purposes of federal and State income taxation, there shall
16    be allowed a credit under this subsection (f) to be
17    determined in accordance with the determination of income
18    and distributive share of income under Sections 702 and 704
19    and Subchapter S of the Internal Revenue Code. The credit
20    shall be .5% of the basis for such property. The credit
21    shall be available only in the taxable year in which the
22    property is placed in service in the Enterprise Zone or
23    River Edge Redevelopment Zone and shall not be allowed to
24    the extent that it would reduce a taxpayer's liability for
25    the tax imposed by subsections (a) and (b) of this Section
26    to below zero. For tax years ending on or after December

 

 

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1    31, 1985, the credit shall be allowed for the tax year in
2    which the property is placed in service, or, if the amount
3    of the credit exceeds the tax liability for that year,
4    whether it exceeds the original liability or the liability
5    as later amended, such excess may be carried forward and
6    applied to the tax liability of the 5 taxable years
7    following the excess credit year. The credit shall be
8    applied to the earliest year for which there is a
9    liability. If there is credit from more than one tax year
10    that is available to offset a liability, the credit
11    accruing first in time shall be applied first.
12        (2) The term qualified property means property which:
13            (A) is tangible, whether new or used, including
14        buildings and structural components of buildings;
15            (B) is depreciable pursuant to Section 167 of the
16        Internal Revenue Code, except that "3-year property"
17        as defined in Section 168(c)(2)(A) of that Code is not
18        eligible for the credit provided by this subsection
19        (f);
20            (C) is acquired by purchase as defined in Section
21        179(d) of the Internal Revenue Code;
22            (D) is used in the Enterprise Zone or River Edge
23        Redevelopment Zone by the taxpayer; and
24            (E) has not been previously used in Illinois in
25        such a manner and by such a person as would qualify for
26        the credit provided by this subsection (f) or

 

 

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

 

 

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1    qualified property resulting from a redetermination of the
2    purchase price shall be deemed a disposition of qualified
3    property to the extent of such reduction.
4        (7) There shall be allowed an additional credit equal
5    to 0.5% of the basis of qualified property placed in
6    service during the taxable year in a River Edge
7    Redevelopment Zone, provided such property is placed in
8    service on or after July 1, 2006, and the taxpayer's base
9    employment within Illinois has increased by 1% or more over
10    the preceding year as determined by the taxpayer's
11    employment records filed with the Illinois Department of
12    Employment Security. Taxpayers who are new to Illinois
13    shall be deemed to have met the 1% growth in base
14    employment for the first year in which they file employment
15    records with the Illinois Department of Employment
16    Security. If, in any year, the increase in base employment
17    within Illinois over the preceding year is less than 1%,
18    the additional credit shall be limited to that percentage
19    times a fraction, the numerator of which is 0.5% and the
20    denominator of which is 1%, but shall not exceed 0.5%.
21        (8) For taxable years beginning on or after January 1,
22    2021, there shall be allowed an Enterprise Zone
23    construction jobs credit against the taxes imposed under
24    subsections (a) and (b) of this Section as provided in
25    Section 13 of the Illinois Enterprise Zone Act.
26        The credit or credits may not reduce the taxpayer's

 

 

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1    liability to less than zero. If the amount of the credit or
2    credits exceeds the taxpayer's liability, the excess may be
3    carried forward and applied against the taxpayer's
4    liability in succeeding calendar years in the same manner
5    provided under paragraph (4) of Section 211 of this Act.
6    The credit or credits shall be applied to the earliest year
7    for which there is a tax liability. If there are credits
8    from more than one taxable year that are available to
9    offset a liability, the earlier credit shall be applied
10    first.
11        For partners, shareholders of Subchapter S
12    corporations, and owners of limited liability companies,
13    if the liability company is treated as a partnership for
14    the purposes of federal and State income taxation, there
15    shall be allowed a credit under this Section to be
16    determined in accordance with the determination of income
17    and distributive share of income under Sections 702 and 704
18    and Subchapter S of the Internal Revenue Code.
19        The total aggregate amount of credits awarded under the
20    Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
21    amendatory Act of the 101st General Assembly) shall not
22    exceed $20,000,000 in any State fiscal year.
23        This paragraph (8) is exempt from the provisions of
24    Section 250.
25    (g) (Blank).
26    (h) Investment credit; High Impact Business.

 

 

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

 

 

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1    taxpayer's liability for the tax imposed by subsections (a)
2    and (b) of this Section to below zero. For tax years ending
3    on or after December 31, 1987, the credit shall be allowed
4    for the tax year in which the property is placed in
5    service, or, if the amount of the credit exceeds the tax
6    liability for that year, whether it exceeds the original
7    liability or the liability as later amended, such excess
8    may be carried forward and applied to the tax liability of
9    the 5 taxable years following the excess credit year. The
10    credit shall be applied to the earliest year for which
11    there is a liability. If there is credit from more than one
12    tax year that is available to offset a liability, the
13    credit accruing first in time shall be applied first.
14        Changes made in this subdivision (h)(1) by Public Act
15    88-670 restore changes made by Public Act 85-1182 and
16    reflect existing law.
17        (2) The term qualified property means property which:
18            (A) is tangible, whether new or used, including
19        buildings and structural components of buildings;
20            (B) is depreciable pursuant to Section 167 of the
21        Internal Revenue Code, except that "3-year property"
22        as defined in Section 168(c)(2)(A) of that Code is not
23        eligible for the credit provided by this subsection
24        (h);
25            (C) is acquired by purchase as defined in Section
26        179(d) of the Internal Revenue Code; and

 

 

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

 

 

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1    credit from the amount of credit previously allowed. For
2    the purposes of this paragraph (6), a reduction of the
3    basis of qualified property resulting from a
4    redetermination of the purchase price shall be deemed a
5    disposition of qualified property to the extent of such
6    reduction.
7        (7) Beginning with tax years ending after December 31,
8    1996, if a taxpayer qualifies for the credit under this
9    subsection (h) and thereby is granted a tax abatement and
10    the taxpayer relocates its entire facility in violation of
11    the explicit terms and length of the contract under Section
12    18-183 of the Property Tax Code, the tax imposed under
13    subsections (a) and (b) of this Section shall be increased
14    for the taxable year in which the taxpayer relocated its
15    facility by an amount equal to the amount of credit
16    received by the taxpayer under this subsection (h).
17    (h-5) High Impact Business construction constructions jobs
18credit. For taxable years beginning on or after January 1,
192021, there shall also be allowed a High Impact Business
20construction jobs credit against the tax imposed under
21subsections (a) and (b) of this Section as provided in
22subsections (i) and (j) of Section 5.5 of the Illinois
23Enterprise Zone Act.
24    The credit or credits may not reduce the taxpayer's
25liability to less than zero. If the amount of the credit or
26credits exceeds the taxpayer's liability, the excess may be

 

 

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1carried forward and applied against the taxpayer's liability in
2succeeding calendar years in the manner provided under
3paragraph (4) of Section 211 of this Act. The credit or credits
4shall be applied to the earliest year for which there is a tax
5liability. If there are credits from more than one taxable year
6that are available to offset a liability, the earlier credit
7shall be applied first.
8    For partners, shareholders of Subchapter S corporations,
9and owners of limited liability companies, if the liability
10company is treated as a partnership for the purposes of federal
11and State income taxation, there shall be allowed a credit
12under this Section to be determined in accordance with the
13determination of income and distributive share of income under
14Sections 702 and 704 and Subchapter S of the Internal Revenue
15Code.
16    The total aggregate amount of credits awarded under the
17Blue Collar Jobs Act (Article 20 of Public Act 101-9 this
18amendatory Act of the 101st General Assembly) shall not exceed
19$20,000,000 in any State fiscal year.
20    This subsection (h-5) is exempt from the provisions of
21Section 250.
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

 

 

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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

 

 

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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

 

 

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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, 2027, 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

 

 

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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

 

 

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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 Public Act 91-644 this
6amendatory Act of the 91st General Assembly in construing this
7Section for taxable years beginning before January 1, 1999.
8    It is the intent of the General Assembly that the research
9and development credit under this subsection (k) shall apply
10continuously for all tax years ending on or after December 31,
112004 and ending prior to January 1, 2027, including, but not
12limited to, the period beginning on January 1, 2016 and ending
13on July 6, 2017 (the effective date of Public Act 100-22) this
14amendatory Act of the 100th General Assembly. All actions taken
15in reliance on the continuation of the credit under this
16subsection (k) by any taxpayer are hereby validated.
17    (l) Environmental Remediation Tax Credit.
18        (i) For tax years ending after December 31, 1997 and on
19    or before December 31, 2001, a taxpayer shall be allowed a
20    credit against the tax imposed by subsections (a) and (b)
21    of this Section for certain amounts paid for unreimbursed
22    eligible remediation costs, as specified in this
23    subsection. For purposes of this Section, "unreimbursed
24    eligible remediation costs" means costs approved by the
25    Illinois Environmental Protection Agency ("Agency") under
26    Section 58.14 of the Environmental Protection Act that were

 

 

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1    paid in performing environmental remediation at a site for
2    which a No Further Remediation Letter was issued by the
3    Agency and recorded under Section 58.10 of the
4    Environmental Protection Act. The credit must be claimed
5    for the taxable year in which Agency approval of the
6    eligible remediation costs is granted. The credit is not
7    available to any taxpayer if the taxpayer or any related
8    party caused or contributed to, in any material respect, a
9    release of regulated substances on, in, or under the site
10    that was identified and addressed by the remedial action
11    pursuant to the Site Remediation Program of the
12    Environmental Protection Act. After the Pollution Control
13    Board rules are adopted pursuant to the Illinois
14    Administrative Procedure Act for the administration and
15    enforcement of Section 58.9 of the Environmental
16    Protection Act, determinations as to credit availability
17    for purposes of this Section shall be made consistent with
18    those rules. For purposes of this Section, "taxpayer"
19    includes a person whose tax attributes the taxpayer has
20    succeeded to under Section 381 of the Internal Revenue Code
21    and "related party" includes the persons disallowed a
22    deduction for losses by paragraphs (b), (c), and (f)(1) of
23    Section 267 of the Internal Revenue Code by virtue of being
24    a related taxpayer, as well as any of its partners. The
25    credit allowed against the tax imposed by subsections (a)
26    and (b) shall be equal to 25% of the unreimbursed eligible

 

 

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1    remediation costs in excess of $100,000 per site, except
2    that the $100,000 threshold shall not apply to any site
3    contained in an enterprise zone as determined by the
4    Department of Commerce and Community Affairs (now
5    Department of Commerce and Economic Opportunity). The
6    total credit allowed shall not exceed $40,000 per year with
7    a maximum total of $150,000 per site. For partners and
8    shareholders of subchapter S corporations, there shall be
9    allowed a credit under this subsection to be determined in
10    accordance with the determination of income and
11    distributive share of income under Sections 702 and 704 and
12    subchapter S of the Internal Revenue Code.
13        (ii) A credit allowed under this subsection that is
14    unused in the year the credit is earned may be carried
15    forward to each of the 5 taxable years following the year
16    for which the credit is first earned until it is used. The
17    term "unused credit" does not include any amounts of
18    unreimbursed eligible remediation costs in excess of the
19    maximum credit per site authorized under paragraph (i).
20    This credit shall be applied first to the earliest year for
21    which there is a liability. If there is a credit under this
22    subsection from more than one tax year that is available to
23    offset a liability, the earliest credit arising under this
24    subsection shall be applied first. A credit allowed under
25    this subsection may be sold to a buyer as part of a sale of
26    all or part of the remediation site for which the credit

 

 

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1    was granted. The purchaser of a remediation site and the
2    tax credit shall succeed to the unused credit and remaining
3    carry-forward period of the seller. To perfect the
4    transfer, the assignor shall record the transfer in the
5    chain of title for the site and provide written notice to
6    the Director of the Illinois Department of Revenue of the
7    assignor's intent to sell the remediation site and the
8    amount of the tax credit to be transferred as a portion of
9    the sale. In no event may a credit be transferred to any
10    taxpayer if the taxpayer or a related party would not be
11    eligible under the provisions of subsection (i).
12        (iii) For purposes of this Section, the term "site"
13    shall have the same meaning as under Section 58.2 of the
14    Environmental Protection Act.
15    (m) Education expense credit. Beginning with tax years
16ending after December 31, 1999, a taxpayer who is the custodian
17of one or more qualifying pupils shall be allowed a credit
18against the tax imposed by subsections (a) and (b) of this
19Section for qualified education expenses incurred on behalf of
20the qualifying pupils. The credit shall be equal to 25% of
21qualified education expenses, but in no event may the total
22credit under this subsection claimed by a family that is the
23custodian of qualifying pupils exceed (i) $500 for tax years
24ending prior to December 31, 2017, and (ii) $750 for tax years
25ending on or after December 31, 2017 and ending prior to
26December 31, 2020, and (iii) $2,500 for tax years ending on or

 

 

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1after December 31, 2020. In no event shall a credit under this
2subsection reduce the taxpayer's liability under this Act to
3less than zero. Notwithstanding any other provision of law, for
4taxable years beginning on or after January 1, 2017, no
5taxpayer may claim a credit under this subsection (m) if the
6taxpayer's adjusted gross income for the taxable year exceeds
7(i) $500,000, in the case of spouses filing a joint federal tax
8return or (ii) $250,000, in the case of all other taxpayers.
9This subsection is exempt from the provisions of Section 250 of
10this Act.
11    For purposes of this subsection:
12    "Qualifying pupils" means individuals who (i) are
13residents of the State of Illinois, (ii) are under the age of
1421 at the close of the school year for which a credit is
15sought, and (iii) during the school year for which a credit is
16sought were full-time pupils enrolled in a kindergarten through
17twelfth grade education program at any school, as defined in
18this subsection.
19    "Qualified education expense" means the amount incurred on
20behalf of a qualifying pupil in excess of $250 for tuition,
21book fees, and lab fees at the school in which the pupil is
22enrolled during the regular school year.
23    "School" means any public or nonpublic elementary or
24secondary school in Illinois that is in compliance with Title
25VI of the Civil Rights Act of 1964 and attendance at which
26satisfies the requirements of Section 26-1 of the School Code,

 

 

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1except that nothing shall be construed to require a child to
2attend any particular public or nonpublic school to qualify for
3the credit under this Section.
4    "Custodian" means, with respect to qualifying pupils, an
5Illinois resident who is a parent, the parents, a legal
6guardian, or the legal guardians of the qualifying pupils.
7    (n) River Edge Redevelopment Zone site remediation tax
8credit.
9        (i) For tax years ending on or after December 31, 2006,
10    a taxpayer shall be allowed a credit against the tax
11    imposed by subsections (a) and (b) of this Section for
12    certain amounts paid for unreimbursed eligible remediation
13    costs, as specified in this subsection. For purposes of
14    this Section, "unreimbursed eligible remediation costs"
15    means costs approved by the Illinois Environmental
16    Protection Agency ("Agency") under Section 58.14a of the
17    Environmental Protection Act that were paid in performing
18    environmental remediation at a site within a River Edge
19    Redevelopment Zone for which a No Further Remediation
20    Letter was issued by the Agency and recorded under Section
21    58.10 of the Environmental Protection Act. The credit must
22    be claimed for the taxable year in which Agency approval of
23    the eligible remediation costs is granted. The credit is
24    not available to any taxpayer if the taxpayer or any
25    related party caused or contributed to, in any material
26    respect, a release of regulated substances on, in, or under

 

 

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1    the site that was identified and addressed by the remedial
2    action pursuant to the Site Remediation Program of the
3    Environmental Protection Act. Determinations as to credit
4    availability for purposes of this Section shall be made
5    consistent with rules adopted by the Pollution Control
6    Board pursuant to the Illinois Administrative Procedure
7    Act for the administration and enforcement of Section 58.9
8    of the Environmental Protection Act. For purposes of this
9    Section, "taxpayer" includes a person whose tax attributes
10    the taxpayer has succeeded to under Section 381 of the
11    Internal Revenue Code and "related party" includes the
12    persons disallowed a deduction for losses by paragraphs
13    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
14    Code by virtue of being a related taxpayer, as well as any
15    of its partners. The credit allowed against the tax imposed
16    by subsections (a) and (b) shall be equal to 25% of the
17    unreimbursed eligible remediation costs in excess of
18    $100,000 per site.
19        (ii) A credit allowed under this subsection that is
20    unused in the year the credit is earned may be carried
21    forward to each of the 5 taxable years following the year
22    for which the credit is first earned until it is used. This
23    credit shall be applied first to the earliest year for
24    which there is a liability. If there is a credit under this
25    subsection from more than one tax year that is available to
26    offset a liability, the earliest credit arising under this

 

 

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1    subsection shall be applied first. A credit allowed under
2    this subsection may be sold to a buyer as part of a sale of
3    all or part of the remediation site for which the credit
4    was granted. The purchaser of a remediation site and the
5    tax credit shall succeed to the unused credit and remaining
6    carry-forward period of the seller. To perfect the
7    transfer, the assignor shall record the transfer in the
8    chain of title for the site and provide written notice to
9    the Director of the Illinois Department of Revenue of the
10    assignor's intent to sell the remediation site and the
11    amount of the tax credit to be transferred as a portion of
12    the sale. In no event may a credit be transferred to any
13    taxpayer if the taxpayer or a related party would not be
14    eligible under the provisions of subsection (i).
15        (iii) For purposes of this Section, the term "site"
16    shall have the same meaning as under Section 58.2 of the
17    Environmental Protection Act.
18    (o) For each of taxable years during the Compassionate Use
19of Medical Cannabis Program, a surcharge is imposed on all
20taxpayers on income arising from the sale or exchange of
21capital assets, depreciable business property, real property
22used in the trade or business, and Section 197 intangibles of
23an organization registrant under the Compassionate Use of
24Medical Cannabis Program Act. The amount of the surcharge is
25equal to the amount of federal income tax liability for the
26taxable year attributable to those sales and exchanges. The

 

 

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1surcharge imposed does not apply if:
2        (1) the medical cannabis cultivation center
3    registration, medical cannabis dispensary registration, or
4    the property of a registration is transferred as a result
5    of any of the following:
6            (A) bankruptcy, a receivership, or a debt
7        adjustment initiated by or against the initial
8        registration or the substantial owners of the initial
9        registration;
10            (B) cancellation, revocation, or termination of
11        any registration by the Illinois Department of Public
12        Health;
13            (C) a determination by the Illinois Department of
14        Public Health that transfer of the registration is in
15        the best interests of Illinois qualifying patients as
16        defined by the Compassionate Use of Medical Cannabis
17        Program Act;
18            (D) the death of an owner of the equity interest in
19        a registrant;
20            (E) the acquisition of a controlling interest in
21        the stock or substantially all of the assets of a
22        publicly traded company;
23            (F) a transfer by a parent company to a wholly
24        owned subsidiary; or
25            (G) the transfer or sale to or by one person to
26        another person where both persons were initial owners

 

 

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1        of the registration when the registration was issued;
2        or
3        (2) the cannabis cultivation center registration,
4    medical cannabis dispensary registration, or the
5    controlling interest in a registrant's property is
6    transferred in a transaction to lineal descendants in which
7    no gain or loss is recognized or as a result of a
8    transaction in accordance with Section 351 of the Internal
9    Revenue Code in which no gain or loss is recognized.
10(Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for
11effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19;
12101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 9-17-19.)
 
13    (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
14    (Text of Section before amendment by P.A. 101-8)
15    Sec. 208. Tax credit for residential real property taxes.
16Except as otherwise provided in this Section, beginning
17Beginning with tax years ending on or after December 31, 1991,
18every individual taxpayer shall be entitled to a tax credit
19equal to 5% of real property taxes paid by such taxpayer during
20the taxable year on the principal residence of the taxpayer.
21Notwithstanding any other provision of law, for taxable years
22ending on or after December 31, 2020, if the school district in
23which the principal residence of the taxpayer is located has
24implemented attendance restrictions as a result of the COVID-19
25pandemic during any part of the taxable year, then, for that

 

 

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1taxable year only, the tax credit under this Section shall be
2equal to 25% of real property taxes paid by such taxpayer
3during the taxable year on the principal residence of the
4taxpayer. In the case of multi-unit or multi-use structures and
5farm dwellings, 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, 2017, 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. 100-22, eff. 7-6-17.)
 
15    (Text of Section after amendment by P.A. 101-8)
16    Sec. 208. Tax credit for residential real property taxes.
17Except as otherwise provided in this Section, for For tax years
18ending on or after December 31, 1991 and ending prior to
19December 31, 2021, every individual taxpayer shall be entitled
20to a tax credit equal to 5% of real property taxes paid by such
21taxpayer during the taxable year on the principal residence of
22the taxpayer. Except as otherwise provided in this Section, for
23For tax years ending on or after December 31, 2021, every
24individual taxpayer shall be entitled to a tax credit equal to
256% of real property taxes paid by such taxpayer during the

 

 

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1taxable year on the principal residence of the taxpayer.
2Notwithstanding any other provision of law, for taxable years
3ending on or after December 31, 2020, if the school district in
4which the principal residence of the taxpayer is located has
5implemented attendance restrictions as a result of the COVID-19
6pandemic during any part of the taxable year, then, for that
7taxable year only, the tax credit under this Section shall be
8equal to 25% of real property taxes paid by such taxpayer
9during the taxable year on the principal residence of the
10taxpayer. In the case of multi-unit or multi-use structures and
11farm dwellings, the taxes on the taxpayer's principal residence
12shall be that portion of the total taxes which is attributable
13to such principal residence. Notwithstanding any other
14provision of law, for taxable years beginning on or after
15January 1, 2017, no taxpayer may claim a credit under this
16Section if the taxpayer's adjusted gross income for the taxable
17year exceeds (i) $500,000, in the case of spouses filing a
18joint federal tax return, or (ii) $250,000, in the case of all
19other taxpayers. This Section is exempt from the provisions of
20Section 250.
21(Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for
22effective date.)
 
23    Section 95. No acceleration or delay. Where this Act makes
24changes in a statute that is represented in this Act by text
25that is not yet or no longer in effect (for example, a Section

 

 

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1represented by multiple versions), the use of that text does
2not accelerate or delay the taking effect of (i) the changes
3made by this Act or (ii) provisions derived from any other
4Public Act.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.