Rep. Delia C. Ramirez

Filed: 3/22/2021

 

 


 

 


 
10200HB3123ham001LRB102 11490 HLH 23839 a

1
AMENDMENT TO HOUSE BILL 3123

2    AMENDMENT NO. ______. Amend House Bill 3123 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the Build
5Illinois Homes Tax Credit Act.
 
6    Section 5. Definitions. As used in this Act, unless the
7context clearly requires otherwise:
8    "Allocation" means an award of tax credits to the owner of
9a qualified development in any allocation round, to be claimed
10ratably annually over the credit period.
11    "Allocation round" means all allocations by the Authority
12of credits under this Act to qualified developments in any
13calendar year.
14    "Allocation schedule certification" means the
15certification issued by the owner of a qualified development
16or its designee pursuant to subsection (d) of Section 10 of

 

 

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1this Act.
2    "Authority" means:
3        (1) the Illinois Housing Development Authority; or
4        (2) the City of Chicago Department of Housing.
5    "Credit" means the credit allowed pursuant to this Act.
6    "Credit period" means the period of 10 taxable years
7beginning with the taxable year in which a qualified
8development is placed in service. No credit period may include
9a taxable year beginning prior to January 1, 2022. If a
10qualified development consists of more than one building, the
11qualified development is deemed to be placed in service in the
12taxable year during which the last building of the qualified
13development is placed in service.
14    "Department" means the Department of Revenue.
15    "Federal tax credit" means the federal low-income housing
16tax credit provided by Section 42 of the federal Internal
17Revenue Code, including federal low-income housing tax credits
18issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4).
19    "Qualified allocation plan" means the qualified allocation
20plan adopted by the Authority pursuant to Section 42(m) of the
21federal Internal Revenue Code of 1986.
22    "Qualified basis" means the qualified basis of the
23qualified development as determined pursuant to Section 42 of
24the federal Internal Revenue Code of 1986.
25    "Qualified development" means a qualified low-income
26housing project, as that term is defined in Section 42 of the

 

 

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1federal Internal Revenue Code of 1986, that is located in the
2State and is determined to be eligible for the federal tax
3credit set forth in Section 42 of the Internal Revenue Code.
4    "Qualified taxpayer" means an individual, person, firm,
5corporation, or other entity that owns an interest, direct or
6indirect, in a qualified development and is subject to any or
7all of the following: (i) the taxes imposed by the Illinois
8Income Tax Act; or (ii) any privilege tax or retaliatory tax,
9penalty, fee, charge or payment imposed by the Illinois
10Insurance Code.
11    "State credit eligibility statement" means a statement
12issued by the Authority under Section 7.
13    "State tax return" means the income tax return filed with
14the Department or the privilege and retaliatory tax return
15filed with the Department of Insurance, as applicable.
 
16    Section 7. State credit eligibility statements. A State
17credit eligibility statement shall be issued by the Authority
18with respect to each building within the qualified development
19following construction or rehabilitation of the qualified
20development certifying that each such building within that
21qualified development qualifies for the credit and specifying:
22        (1) the calendar year in which the last building of
23    the qualified development was placed in service;
24        (2) the amount of the credit allowed for each year of
25    the credit period;

 

 

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1        (3) the maximum qualified basis of the qualified
2    development taken into account in determining such annual
3    credit amount; and
4        (4) a unique identification number for each State
5    credit eligibility statement issued.
6    The State credit eligibility statement shall be issued by
7the Authority simultaneously with IRS Form 8609 if the
8qualified development was also allocated federal tax credits.
9    The State credit eligibility statement shall include a
10Section to be completed by the owner of the qualified
11development annually for each year of the credit period
12certifying that the qualified development was in conformance
13with all compliance requirements. That certification shall be
14filed with the project owner's State tax return annually of
15each year of the credit period.
 
16    Section 10. Credit for low-income housing developments.
17    (a) The Authority shall include the credit in its annual
18qualified allocation plan each year until expiration of this
19Act. Each allocation round shall be simultaneous with
20allocations of federal tax credits.
21    (b) For taxable years beginning on or after January 1,
222021, the Authority may allocate a credit to the owner of a
23qualified development in any allocation round in an amount
24determined by the Authority, subject to the following
25guidelines:

 

 

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1        (1) the Authority must find that the credit is
2    necessary for the financial feasibility of the qualified
3    development;
4        (2) the aggregate sum of credits allocated to
5    qualified developments in any allocation round shall not
6    exceed $35,000,000, plus the amount of unallocated
7    credits, if any, from the preceding allocation round, plus
8    the amount of any credit recaptured or otherwise returned
9    to the Authority since the previous allocation round;
10        (3) of the $35,000,000 annual allocation: (i) 75.5% of
11    the available credits in each allocation round shall be
12    allocated by the Illinois Housing Development Authority,
13    plus any credits the Illinois Housing Development
14    Authority did not allocate from the previous allocation
15    round, plus the amount of any credits recaptured or
16    otherwise returned to the Illinois Housing Development
17    Authority since the previous allocation round; and (ii)
18    24.5% of the available credits in each allocation round
19    shall be allocated by the City of Chicago Department of
20    Housing, plus any credits the City of Chicago Department
21    of Housing did not allocate from the previous allocation
22    round, plus the amount of any credits recaptured or
23    otherwise returned to the City of Chicago Department of
24    Housing since the previous allocation round; and
25        (4) unless otherwise provided in this Act, or unless
26    the context clearly requires otherwise, the Authority must

 

 

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1    determine eligibility for credits and allocate credits in
2    accordance with the standards and requirements set forth
3    in Section 42 of the federal Internal Revenue Code of
4    1986.
5    (c) For tax years during the credit period, any qualified
6taxpayer is allowed a credit as provided in this Act against
7any or all of the following: (i) the taxes imposed by
8subsections (a) and (b) of Section 201 of the Illinois Income
9Tax Act; or (ii) any privilege tax or retaliatory tax,
10penalty, fee, charge, or payment imposed under the Illinois
11Insurance Code.
12    (d) If a taxpayer receiving an allocation of a credit is
13(i) a corporation that has an election in effect under
14Subchapter S of the federal Internal Revenue Code, (ii) a
15partnership, or (iii) a limited liability company, that is
16taxed as a partnership, the credit provided under this Act may
17be claimed by the shareholders of the corporation, the
18partners of the partnership, or the members of the limited
19liability company (as those terms are defined under applicable
20State law) in the same manner as those shareholders, partners,
21or members account for their proportionate shares of the
22income or losses of the corporation, partnership, or limited
23liability company, or as provided in the bylaws or other
24executed agreement of the corporation, partnership, or limited
25liability company. Credits granted to a partnership, a limited
26liability company taxed as a partnership, or other multiple

 

 

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1owners of property shall be passed through to the partners,
2members, or owners respectively on a pro rata basis or
3pursuant to an executed agreement among the partners, members,
4or owners documenting any alternative distribution method. A
5qualified taxpayer may claim a credit so long as its direct or
6indirect interest in the qualified development is acquired
7prior to the filing of its tax return claiming the credit. On
8or before February 28th following each year of the credit
9period, the owner must submit an allocation schedule
10certification in an electronic format prescribed by the
11Department and the Department of Insurance to the Department
12and the Department of Insurance detailing the amount of credit
13allocated to each qualified taxpayer for the applicable year
14and whether each qualified taxpayer intends to apply the
15credit to income tax or insurance premium tax, or the owner
16must notify the Department and the Department of Insurance
17that it has assigned the duty of the allocation schedule
18certification to its designee who must provide such allocation
19schedule certification to the Department and the Department of
20Insurance by the deadline. Such allocation schedule
21certification may be amended in the event the State credit
22eligibility statement for a project is received after the
23deadline for filing the allocation schedule certification. Any
24such amendment shall be filed prior to any taxpayer attempting
25to claim tax credits associated with the applicable State
26credit eligibility statement. Each qualified taxpayer is

 

 

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1allowed to claim its allocated amount of credit subject to any
2restrictions set forth in this Section.
3    (e) No credit may be allocated pursuant to this Act unless
4the qualified development is the subject of a recorded
5restrictive covenant requiring the development to be
6maintained and operated as a qualified development; this
7requirement for a recorded restrictive covenant may be
8satisfied by the agreement for an extended low-income housing
9commitment required for the federal tax credits as defined in
10Section 42(h)(6)(B) of the federal Internal Revenue Code of
111986.
12    (f) If, during a taxable year, there is a determination
13that no recorded restrictive covenant meeting the requirements
14of subsection (e) was in effect as of the beginning of that
15year, such determination shall not apply to any period before
16that year and subsection (e) shall be applied without regard
17to that determination if the failure is corrected within one
18year from the date of the determination.
19    (g) The credit amount may be taken against the taxes
20imposed by the Illinois Income Tax Act for each taxable year of
21the credit period. The credit amount may be taken against the
22taxes, penalties, fees, charges, and payments imposed by the
23Illinois Insurance Code for each reporting period in the
24credit period. Any credit amount that exceeds the tax due for a
25taxable year may be carried forward as a tax credit against
26payments due for up to 5 taxable years following the tax year

 

 

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1to which the credit relates and must be applied first to the
2earliest reporting periods possible. Credits that are not
3claimed may not be refunded to the qualified taxpayer.
4    (h) By January 15, 2022 and by January 15 of each year
5thereafter, the Authority shall provide to the Department and
6the Department of Insurance an electronic file containing all
7data related to all State credit eligibility statements issued
8during the preceding year in the manner and form as provided by
9the Department.
 
10    Section 15. Recapture. If, under Section 42 of the
11Internal Revenue Code of 1986, a portion of any federal tax
12credit claimed with respect to a qualified development is
13required to be recaptured during the first 10 years after a
14project is placed in service, then the Authority shall provide
15written notice, upon a form created by the Authority, to the
16owner of the qualified development, the Department and the
17Department of Insurance of the amount to be recaptured and the
18event triggering recapture. The Authority shall provide such
19notice to the Department and Department of Insurance no
20earlier than 6 months after the event triggering recapture to
21allow the owner of the qualified development an opportunity to
22correct this event. The amount of credit subject to recapture
23shall be proportionately equal to the amount of the qualified
24development's federal tax credits which are subject to
25recapture. The Department or the Department of Insurance, as

 

 

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1applicable, shall notify the qualified taxpayer that claimed
2the credit of the amount recaptured, and the qualified
3taxpayer subject to recapture shall increase the qualified
4taxpayer's tax by the amount of any credit wrongfully claimed
5in the tax year the qualified taxpayer is notified of the
6recapture. If multiple taxpayers claimed credit with respect
7to the building for which credit is to be recaptured, each of
8those taxpayers shall be liable for a portion of the recapture
9equal to the percentages of credit with respect to the
10building originally claimed by the taxpayer.
 
11    Section 20. Filing requirements. An owner of a qualified
12development that has received an allocation and each qualified
13taxpayer claiming any portion of the credit must file with
14their State tax returns a copy of the State credit eligibility
15statement issued by the Authority for that qualified
16development. A qualified taxpayer receiving an allocation of
17credit through a pass-through entity shall attach to its State
18tax return a copy of the Schedule K-1-P or other written
19statement from the pass-through entity stating the portion of
20the annual credit shown on the State credit eligibility
21statement that is allocated to that partner, member or
22shareholder for that taxable year. In addition, the owner of a
23qualified development or its designee shall file a copy of the
24allocation schedule certification prior to any tax return
25being filed claiming a State credit for such qualified

 

 

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1development.
 
2    Section 25. Rules. The Illinois Housing Development
3Authority, the Department, and the Department of Insurance, in
4consultation with each other, shall adopt such rules as are
5necessary to carry out their respective responsibilities under
6this Act.
 
7    Section 30. Compliance monitoring. The Authority, in
8consultation with the Department, shall monitor and oversee
9compliance with the provisions of this Act and shall report
10specific occurrences of noncompliance to the Department and
11the Department of Insurance.
 
12    Section 35. Report to the General Assembly.
13    (a) The Illinois Housing Development Authority and the
14Chicago Department of Housing must, by February 28 of each
15year following the annual allocation, provide a written report
16to the General Assembly and must publish that report on their
17websites.
18    (b) The report shall:
19        (1) set forth the number of qualified developments
20    that have been allocated tax credits under this Act during
21    the allocation year and the total number of units
22    supported by each qualified development;
23        (2) describe each qualified development that has been

 

 

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1    allocated tax credits under this Act including, without
2    limitation, the geographic location of the qualified
3    development, the household type and any specific
4    demographic information available about residents intended
5    to be served by the qualified development, the income
6    levels intended to be served by the qualified development,
7    and the rents or set-asides authorized for each qualified
8    development;
9        (3) provide housing market and demographic information
10    that demonstrates how the qualified developments supported
11    by the tax credits are addressing the need for affordable
12    housing within the communities they are intended to serve
13    as well as information about any remaining disparities in
14    the affordability of housing within those communities; and
15        (4) provide information on the percentage of qualified
16    developments allocated credits that received incentive
17    scoring points in the qualified allocation plan as a
18    result of the general contractor, property manager,
19    architect, or sponsor being certified under the Business
20    Enterprise Program for Minorities, Females, and Persons
21    with a Disability.
 
22    Section 40. Exempt from automatic sunset. The credit under
23this Act is exempt from the provisions of Section 250 of the
24Illinois Income Tax Act.
 

 

 

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1    Section 60. The Illinois Income Tax Act is amended by
2adding Section 232 as follows:
 
3    (35 ILCS 5/232 new)
4    Sec. 232. Build Illinois Homes Tax Credit Act.
5    (a) For taxable years beginning on or after January 1,
62022, any eligible taxpayer with respect to a credit awarded
7in accordance with the Build Illinois Homes Tax Credit Act
8that is named, on or after January 1, 2021, on the allocation
9schedule certification for a particular tax year is entitled
10to a credit against the taxes imposed by subsections (a) and
11(b) of Section 201 as provided in the Build Illinois Homes Tax
12Credit Act.
13    (b) The taxpayer shall attach a copy of the allocation
14schedule certification and the State credit eligibility
15certificate issued under the Build Illinois Homes Tax Credit
16Act to the tax return on which the credits are to be claimed.
17    (c) If, during any taxable year, a taxpayer is notified of
18a recapture of a credit previously claimed on a State income
19tax return in accordance with the Build Illinois Homes Tax
20Credit Act, the tax imposed under subsections (a) and (b) of
21Section 201 for that taxpayer for that taxable year shall be
22increased. The amount of the increase shall be determined by
23(i) recomputing the Build Illinois Homes Tax Credit that would
24have been allowed for the year in which the credit was
25originally allowed by eliminating the recaptured amount from

 

 

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1such computation, and (ii) subtracting that recomputed credit
2from the amount of credit previously allowed. No Build
3Illinois Homes tax Credit shall be allowed with respect to any
4credit subject to a recapture notice for any taxable year
5ending after the issuance of a recapture notice.
6    (d) This Section is exempt from the provisions of Section
7250.
 
8    Section 65. The Illinois Insurance Code is amended by
9changing Sections 409 and 444 as follows:
 
10    (215 ILCS 5/409)  (from Ch. 73, par. 1021)
11    Sec. 409. Annual privilege tax payable by companies.
12    (1) As of January 1, 1999 for all health maintenance
13organization premiums written; as of July 1, 1998 for all
14premiums written as accident and health business, voluntary
15health service plan business, dental service plan business, or
16limited health service organization business; and as of
17January 1, 1998 for all other types of insurance premiums
18written, every company doing any form of insurance business in
19this State, including, but not limited to, every risk
20retention group, and excluding all fraternal benefit
21societies, all farm mutual companies, all religious charitable
22risk pooling trusts, and excluding all statutory residual
23market and special purpose entities in which companies are
24statutorily required to participate, whether incorporated or

 

 

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1otherwise, shall pay, for the privilege of doing business in
2this State, to the Director for the State treasury a State tax
3equal to 0.5% of the net taxable premium written, together
4with any amounts due under Section 444 of this Code, except
5that the tax to be paid on any premium derived from any
6accident and health insurance or on any insurance business
7written by any company operating as a health maintenance
8organization, voluntary health service plan, dental service
9plan, or limited health service organization shall be equal to
100.4% of such net taxable premium written, together with any
11amounts due under Section 444. Upon the failure of any company
12to pay any such tax due, the Director may, by order, revoke or
13suspend the company's certificate of authority after giving 20
14days written notice to the company, or commence proceedings
15for the suspension of business in this State under the
16procedures set forth by Section 401.1 of this Code. The gross
17taxable premium written shall be the gross amount of premiums
18received on direct business during the calendar year on
19contracts covering risks in this State, except premiums on
20annuities, premiums on which State premium taxes are
21prohibited by federal law, premiums paid by the State for
22health care coverage for Medicaid eligible insureds as
23described in Section 5-2 of the Illinois Public Aid Code,
24premiums paid for health care services included as an element
25of tuition charges at any university or college owned and
26operated by the State of Illinois, premiums on group insurance

 

 

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1contracts under the State Employees Group Insurance Act of
21971, and except premiums for deferred compensation plans for
3employees of the State, units of local government, or school
4districts. The net taxable premium shall be the gross taxable
5premium written reduced only by the following:
6        (a) the amount of premiums returned thereon which
7    shall be limited to premiums returned during the same
8    preceding calendar year and shall not include the return
9    of cash surrender values or death benefits on life
10    policies including annuities;
11        (b) dividends on such direct business that have been
12    paid in cash, applied in reduction of premiums or left to
13    accumulate to the credit of policyholders or annuitants.
14    In the case of life insurance, no deduction shall be made
15    for the payment of deferred dividends paid in cash to
16    policyholders on maturing policies; dividends left to
17    accumulate to the credit of policyholders or annuitants
18    shall be included as gross taxable premium written when
19    such dividend accumulations are applied to purchase
20    paid-up insurance or to shorten the endowment or premium
21    paying period.
22    (2) The annual privilege tax payment due from a company
23under subsection (4) of this Section may be reduced by: (a) the
24excess amount, if any, by which the aggregate income taxes
25paid by the company, on a cash basis, for the preceding
26calendar year under Sections 601 and 803 of the Illinois

 

 

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1Income Tax Act exceed 1.5% of the company's net taxable
2premium written for that prior calendar year, as determined
3under subsection (1) of this Section; and (b) the amount of any
4fire department taxes paid by the company during the preceding
5calendar year under Section 11-10-1 of the Illinois Municipal
6Code. Any deductible amount or offset allowed under items (a)
7and (b) of this subsection for any calendar year will not be
8allowed as a deduction or offset against the company's
9privilege tax liability for any other taxing period or
10calendar year.
11    (3) If a company survives or was formed by a merger,
12consolidation, reorganization, or reincorporation, the
13premiums received and amounts returned or paid by all
14companies party to the merger, consolidation, reorganization,
15or reincorporation shall, for purposes of determining the
16amount of the tax imposed by this Section, be regarded as
17received, returned, or paid by the surviving or new company.
18    (4)(a) All companies subject to the provisions of this
19Section shall make an annual return for the preceding calendar
20year on or before March 15 setting forth such information on
21such forms as the Director may reasonably require. Payments of
22quarterly installments of the taxpayer's total estimated tax
23for the current calendar year shall be due on or before April
2415, June 15, September 15, and December 15 of such year, except
25that all companies transacting insurance in this State whose
26annual tax for the immediately preceding calendar year was

 

 

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1less than $5,000 shall make only an annual return. Failure of a
2company to make the annual payment, or to make the quarterly
3payments, if required, of at least 25% of either (i) the total
4tax paid during the previous calendar year or (ii) 80% of the
5actual tax for the current calendar year shall subject it to
6the penalty provisions set forth in Section 412 of this Code.
7    (b) Notwithstanding the foregoing provisions, no annual
8return shall be required or made on March 15, 1998, under this
9subsection. For the calendar year 1998:
10        (i) each health maintenance organization shall have no
11    estimated tax installments;
12        (ii) all companies subject to the tax as of July 1,
13    1998 as set forth in subsection (1) shall have estimated
14    tax installments due on September 15 and December 15 of
15    1998 which installments shall each amount to no less than
16    one-half of 80% of the actual tax on its net taxable
17    premium written during the period July 1, 1998, through
18    December 31, 1998; and
19        (iii) all other companies shall have estimated tax
20    installments due on June 15, September 15, and December 15
21    of 1998 which installments shall each amount to no less
22    than one-third of 80% of the actual tax on its net taxable
23    premium written during the calendar year 1998.
24    In the year 1999 and thereafter all companies shall make
25annual and quarterly installments of their estimated tax as
26provided by paragraph (a) of this subsection.

 

 

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1    (5) In addition to the authority specifically granted
2under Article XXV of this Code, the Director shall have such
3authority to adopt rules and establish forms as may be
4reasonably necessary for purposes of determining the
5allocation of Illinois corporate income taxes paid under
6subsections (a) through (d) of Section 201 of the Illinois
7Income Tax Act amongst members of a business group that files
8an Illinois corporate income tax return on a unitary basis,
9for purposes of regulating the amendment of tax returns, for
10purposes of defining terms, and for purposes of enforcing the
11provisions of Article XXV of this Code. The Director shall
12also have authority to defer, waive, or abate the tax imposed
13by this Section if in his opinion the company's solvency and
14ability to meet its insured obligations would be immediately
15threatened by payment of the tax due.
16    (6) This Section is subject to the provisions of Section
1710 of the New Markets Development Program Act.
18    (7) This Section is subject to the provisions of the Build
19Illinois Homes Tax Credit Act. For taxable years beginning on
20or after January 1, 2022, qualified taxpayers are entitled to
21claim credits awarded in accordance with the Build Illinois
22Homes Tax Credit Act on or after January 1, 2021 against the
23taxes imposed by this Section as provided in the Build
24Illinois Homes Tax Credit Act. Companies claiming a credit
25under the Build Illinois Homes Tax Credit Act are not required
26to pay any additional tax as a result of claiming the credit.

 

 

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1The credit may fully offset any amounts imposed under this
2Section.
3(Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)
 
4    (215 ILCS 5/444)  (from Ch. 73, par. 1056)
5    Sec. 444. Retaliation.
6    (1) Whenever the existing or future laws of any other
7state or country shall require of companies incorporated or
8organized under the laws of this State as a condition
9precedent to their doing business in such other state or
10country, compliance with laws, rules, regulations, and
11prohibitions more onerous or burdensome than the rules and
12regulations imposed by this State on foreign or alien
13companies, or shall require any deposit of securities or other
14obligations in such state or country, for the protection of
15policyholders or otherwise or require of such companies or
16agents thereof or brokers the payment of penalties, fees,
17charges, or taxes greater than the penalties, fees, charges,
18or taxes required in the aggregate for like purposes by this
19Code or any other law of this State, of foreign or alien
20companies, agents thereof or brokers, then such laws, rules,
21regulations, and prohibitions of said other state or country
22shall apply to companies incorporated or organized under the
23laws of such state or country doing business in this State, and
24all such companies, agents thereof, or brokers doing business
25in this State, shall be required to make deposits, pay

 

 

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1penalties, fees, charges, and taxes, in amounts equal to those
2required in the aggregate for like purposes of Illinois
3companies doing business in such state or country, agents
4thereof or brokers. Whenever any other state or country shall
5refuse to permit any insurance company incorporated or
6organized under the laws of this State to transact business
7according to its usual plan in such other state or country, the
8director may, if satisfied that such company of this State is
9solvent, properly managed, and can operate legally under the
10laws of such other state or country, forthwith suspend or
11cancel the license of every insurance company doing business
12in this State which is incorporated or organized under the
13laws of such other state or country to the extent that it
14insures in this State against any of the risks or hazards which
15are sought to be insured against by the company of this State
16in such other state or country.
17    (2) The provisions of this Section shall not apply to
18residual market or special purpose assessments or guaranty
19fund or guaranty association assessments, both under the laws
20of this State and under the laws of any other state or country,
21and any tax offset or credit for any such assessment shall, for
22purposes of this Section, be treated as a tax paid both under
23the laws of this State and under the laws of any other state or
24country.
25    (3) The terms "penalties", "fees", "charges", and "taxes"
26in subsection (1) of this Section shall include: the

 

 

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1penalties, fees, charges, and taxes collected on a cash basis
2under State law and referenced within Article XXV exclusive of
3any items referenced by subsection (2) of this Section, but
4including any tax offset allowed under Section 531.13 of this
5Code; the aggregate Illinois corporate income taxes paid under
6Sections 601 and 803 of the Illinois Income Tax Act during the
7calendar year for which the retaliatory tax calculation is
8being made, less the recapture of any Illinois corporate
9income tax cash refunds to the extent that the amount of tax
10refunded was reported as part of the Illinois basis in the
11calculation of the retaliatory tax for a prior tax year,
12provided that such recaptured refund shall not exceed the
13amount necessary for equivalence of the Illinois basis with
14the state of incorporation basis in such tax year, and after
15any tax offset allowed under Section 531.13 of this Code;
16income or personal property taxes imposed by other states or
17countries; penalties, fees, charges, and taxes of other states
18or countries imposed for purposes like those of the penalties,
19fees, charges, and taxes specified in Article XXV of this Code
20exclusive of any item referenced in subsection (2) of this
21Section; and any penalties, fees, charges, and taxes required
22as a franchise, privilege, or licensing tax for conducting the
23business of insurance whether calculated as a percentage of
24income, gross receipts, premium, or otherwise.
25    (4) Nothing contained in this Section or Section 409 or
26Section 444.1 is intended to authorize or expand any power of

 

 

10200HB3123ham001- 23 -LRB102 11490 HLH 23839 a

1local governmental units or municipalities to impose taxes,
2fees, or charges.
3    (5) This Section is subject to the provisions of Section
410 of the New Markets Development Program Act.
5    (6) This Section is subject to the provisions of the Build
6Illinois Homes Tax Credit Act. For taxable years beginning on
7or after January 1, 2022, qualified taxpayers are entitled to
8claim credits awarded in accordance with the Build Illinois
9Homes Tax Credit Act on or after January 1, 2021 against the
10taxes imposed by this Section as provided in the Build
11Illinois Homes Tax Credit Act. Companies claiming a credit
12under the Build Illinois Homes Tax Credit Act are not required
13to pay any additional tax as a result of claiming the credit.
14The credit may fully offset any amounts imposed under this
15Section.
16(Source: P.A. 98-1169, eff. 1-9-15.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".