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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||
5 | changing Section 207 as follows:
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6 | (35 ILCS 5/207) (from Ch. 120, par. 2-207)
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7 | Sec. 207. Net Losses.
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8 | (a) If after applying all of the (i) modifications
provided | ||||||||||||||||||||||||
9 | for in paragraph (2) of Section 203(b), paragraph (2) of | ||||||||||||||||||||||||
10 | Section
203(c) and paragraph (2) of Section 203(d) and (ii) the | ||||||||||||||||||||||||
11 | allocation and
apportionment provisions of Article 3 of this
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12 | Act and subsection (c) of this Section, the taxpayer's net | ||||||||||||||||||||||||
13 | income results in a loss;
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14 | (1) for any taxable year ending prior to December 31, | ||||||||||||||||||||||||
15 | 1999, such loss
shall be allowed
as a carryover or | ||||||||||||||||||||||||
16 | carryback deduction in the manner allowed under Section
172 | ||||||||||||||||||||||||
17 | of the Internal Revenue Code;
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18 | (2) for any taxable year ending on or after December | ||||||||||||||||||||||||
19 | 31, 1999 and prior
to December 31, 2003, such loss
shall be | ||||||||||||||||||||||||
20 | allowed as a carryback to each of the 7 2 taxable years | ||||||||||||||||||||||||
21 | preceding the
taxable year of such loss and shall be a net | ||||||||||||||||||||||||
22 | operating loss carryover to each of the
25 20 taxable years | ||||||||||||||||||||||||
23 | following the taxable year of such loss; and
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1 | (3) for any taxable year ending on or after December | ||||||
2 | 31, 2003, such loss
shall be allowed as a net operating | ||||||
3 | loss carryover to each of the 17 12 taxable years
following | ||||||
4 | the taxable year of such loss, except as provided in | ||||||
5 | subsection (d).
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6 | (a-5) Election to relinquish carryback and order of | ||||||
7 | application of
losses.
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8 | (A) For losses incurred in tax years ending prior | ||||||
9 | to December 31,
2003, the taxpayer may elect to | ||||||
10 | relinquish the entire carryback period
with respect to | ||||||
11 | such loss. Such election shall be made in the form and | ||||||
12 | manner
prescribed by the Department and shall be made | ||||||
13 | by the due date (including
extensions of time) for | ||||||
14 | filing the taxpayer's return for the taxable year in
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15 | which such loss is incurred, and such election, once | ||||||
16 | made, shall be
irrevocable.
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17 | (B) The entire amount of such loss shall be carried | ||||||
18 | to the earliest
taxable year to which such loss may be | ||||||
19 | carried. The amount of such loss which
shall be carried | ||||||
20 | to each of the other taxable years shall be the excess, | ||||||
21 | if
any, of the amount of such loss over the sum of the | ||||||
22 | deductions for carryback or
carryover of such loss | ||||||
23 | allowable for each of the prior taxable years to which
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24 | such loss may be carried.
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25 | (b) Any loss determined under subsection (a) of this | ||||||
26 | Section must be carried
back or carried forward in the same |
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1 | manner for purposes of subsections (a)
and (b) of Section 201 | ||||||
2 | of this Act as for purposes of subsections (c) and
(d) of | ||||||
3 | Section 201 of this Act.
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4 | (c) Notwithstanding any other provision of this Act, for | ||||||
5 | each taxable year ending on or after December 31, 2008, for | ||||||
6 | purposes of computing the loss for the taxable year under | ||||||
7 | subsection (a) of this Section and the deduction taken into | ||||||
8 | account for the taxable year for a net operating loss carryover | ||||||
9 | under paragraphs (1), (2), and (3) of subsection (a) of this | ||||||
10 | Section, the loss and net operating loss carryover shall be | ||||||
11 | reduced in an amount equal to the reduction to the net | ||||||
12 | operating loss and net operating loss carryover to the taxable | ||||||
13 | year, respectively, required under Section 108(b)(2)(A) of the | ||||||
14 | Internal Revenue Code, multiplied by a fraction, the numerator | ||||||
15 | of which is the amount of discharge of indebtedness income that | ||||||
16 | is excluded from gross income for the taxable year (but only if | ||||||
17 | the taxable year ends on or after December 31, 2008) under | ||||||
18 | Section 108(a) of the Internal Revenue Code and that would have | ||||||
19 | been allocated and apportioned to this State under Article 3 of | ||||||
20 | this Act but for that exclusion, and the denominator of which | ||||||
21 | is the total amount of discharge of indebtedness income | ||||||
22 | excluded from gross income under Section 108(a) of the Internal | ||||||
23 | Revenue Code for the taxable year. The reduction required under | ||||||
24 | this subsection (c) shall be made after the determination of | ||||||
25 | Illinois net income for the taxable year in which the | ||||||
26 | indebtedness is discharged.
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1 | (d) In the case of a corporation (other than a Subchapter S | ||||||
2 | corporation), no carryover deduction shall be allowed under | ||||||
3 | this Section for any taxable year ending after December 31, | ||||||
4 | 2010 and prior to December 31, 2014; provided that, for | ||||||
5 | purposes of determining the taxable years to which a net loss | ||||||
6 | may be carried under subsection (a) of this Section, no taxable | ||||||
7 | year for which a deduction is disallowed under this subsection | ||||||
8 | shall be counted. | ||||||
9 | (Source: P.A. 95-233, eff. 8-16-07; 96-1496, eff. 1-13-11.)
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