Full Text of HB4914 93rd General Assembly
HB4914enr 93RD GENERAL ASSEMBLY
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| AN ACT concerning college savings.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The State Treasurer Act is amended by changing | 5 |
| Section 16.5 as
follows:
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| (15 ILCS 505/16.5)
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| Sec. 16.5. College Savings Pool. The State Treasurer may | 8 |
| establish and
administer a College Savings Pool to supplement | 9 |
| and enhance the investment
opportunities otherwise available | 10 |
| to persons seeking to finance the costs of
higher education. | 11 |
| The State Treasurer, in administering the College Savings
Pool, | 12 |
| may receive moneys paid into the pool by a participant and may | 13 |
| serve as
the fiscal agent of that participant for the purpose | 14 |
| of holding and investing
those moneys.
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| "Participant", as used in this Section, means any person | 16 |
| who makes
investments in the pool. "Designated beneficiary", as | 17 |
| used in this Section,
means any person on whose behalf an | 18 |
| account is established in the College
Savings Pool by a | 19 |
| participant. Both in-state and out-of-state persons may be
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| participants and designated beneficiaries in the College | 21 |
| Savings Pool.
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| New accounts in the College Savings Pool shall be processed | 23 |
| through
participating financial institutions. "Participating | 24 |
| financial institution",
as used in this Section, means any | 25 |
| financial institution insured by the Federal
Deposit Insurance | 26 |
| Corporation and lawfully doing business in the State of
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| Illinois and any credit union approved by the State Treasurer | 28 |
| and lawfully
doing business in the State of Illinois that | 29 |
| agrees to process new accounts in
the College Savings Pool. | 30 |
| Participating financial institutions may charge a
processing | 31 |
| fee to participants to open an account in the pool that shall | 32 |
| not
exceed $30 until the year 2001. Beginning in 2001 and every |
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| year thereafter,
the maximum fee limit shall be adjusted by the | 2 |
| Treasurer based on the Consumer
Price Index for the North | 3 |
| Central Region as published by the United States
Department of | 4 |
| Labor, Bureau of Labor Statistics for the immediately preceding
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| calendar year. Every contribution received by a financial | 6 |
| institution for
investment in the College Savings Pool shall be | 7 |
| transferred from the financial
institution to a location | 8 |
| selected by the State Treasurer within one business
day | 9 |
| following the day that the funds must be made available in | 10 |
| accordance with
federal law. All communications from the State | 11 |
| Treasurer to participants shall
reference the participating | 12 |
| financial institution at which the account was
processed.
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| The Treasurer may invest the moneys in the College Savings | 14 |
| Pool in the same
manner, in the same types of investments, and | 15 |
| subject to the same limitations
provided for the investment of | 16 |
| moneys by the Illinois State Board of
Investment. To enhance | 17 |
| the safety and liquidity of the College Savings Pool,
to ensure | 18 |
| the diversification of the investment portfolio of the pool, | 19 |
| and in
an effort to keep investment dollars in the State of | 20 |
| Illinois, the State
Treasurer shall make a percentage of each | 21 |
| account available for investment in
participating financial | 22 |
| institutions doing business in the State. The State
Treasurer | 23 |
| shall deposit with the participating financial institution at | 24 |
| which
the account was processed the following percentage of | 25 |
| each account at a
prevailing rate offered by the institution, | 26 |
| provided that the deposit is
federally insured or fully | 27 |
| collateralized and the institution accepts the
deposit: 10% of | 28 |
| the total amount of each account for which the current age of
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| the beneficiary is less than 7 years of age, 20% of the total | 30 |
| amount of each
account for which the beneficiary is at least 7 | 31 |
| years of age and less than 12
years of age, and 50% of the total | 32 |
| amount of each account for which the current
age of the | 33 |
| beneficiary is at least 12 years of age. The State Treasurer | 34 |
| shall
adjust each account at least annually to ensure | 35 |
| compliance with this Section.
The Treasurer shall develop, | 36 |
| publish, and implement an investment policy
covering the |
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| investment of the moneys in the College Savings Pool. The | 2 |
| policy
shall be published (i) at least once each year in at | 3 |
| least one newspaper of
general circulation in both Springfield | 4 |
| and Chicago and (ii) each year as part
of the audit of the | 5 |
| College Savings Pool by the Auditor General, which shall be
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| distributed to all participants. The Treasurer shall notify all | 7 |
| participants
in writing, and the Treasurer shall publish in a | 8 |
| newspaper of general
circulation in both Chicago and | 9 |
| Springfield, any changes to the previously
published | 10 |
| investment policy at least 30 calendar days before implementing | 11 |
| the
policy. Any investment policy adopted by the Treasurer | 12 |
| shall be reviewed and
updated if necessary within 90 days | 13 |
| following the date that the State Treasurer
takes office.
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| Participants shall be required to use moneys distributed | 15 |
| from the College
Savings Pool for qualified expenses at | 16 |
| eligible educational institutions.
"Qualified expenses", as | 17 |
| used in this Section, means the following: (i)
tuition, fees, | 18 |
| and the costs of books, supplies, and equipment required for
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| enrollment or attendance at an eligible educational | 20 |
| institution and (ii)
certain room and board expenses incurred | 21 |
| while attending an eligible
educational institution at least | 22 |
| half-time. "Eligible educational
institutions", as used in | 23 |
| this Section, means public and private colleges,
junior | 24 |
| colleges, graduate schools, and certain vocational | 25 |
| institutions that are
described in Section 481 of the Higher | 26 |
| Education Act of 1965 (20 U.S.C. 1088)
and that are eligible to | 27 |
| participate in Department of Education student aid
programs. A | 28 |
| student shall be considered to be enrolled at
least half-time | 29 |
| if the student is enrolled for at least half the full-time
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| academic work load for the course of study the student is | 31 |
| pursuing as
determined under the standards of the institution | 32 |
| at which the student is
enrolled. Distributions made from the | 33 |
| pool for qualified expenses shall be
made directly to the | 34 |
| eligible educational institution, directly to a vendor, or
in | 35 |
| the form of a check payable to both the beneficiary and the | 36 |
| institution or
vendor. Any moneys that are distributed in any |
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| other manner or that are used
for expenses other than qualified | 2 |
| expenses at an eligible educational
institution shall be | 3 |
| subject to a penalty of 10% of the earnings unless the
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| beneficiary dies, becomes disabled, or receives a scholarship | 5 |
| that equals or
exceeds the distribution. Penalties shall be | 6 |
| withheld at the time the
distribution is made.
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| The Treasurer shall limit the contributions that may be | 8 |
| made on behalf of a
designated beneficiary based on an | 9 |
| actuarial estimate of what is required to
pay tuition, fees, | 10 |
| and room and board for 5 undergraduate years at the highest
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| cost eligible educational institution. The contributions made | 12 |
| on behalf of a
beneficiary who is also a beneficiary under the | 13 |
| Illinois Prepaid Tuition
Program shall be further restricted to | 14 |
| ensure that the contributions in both
programs combined do not | 15 |
| exceed the limit established for the College Savings
Pool. The | 16 |
| Treasurer shall provide the Illinois Student Assistance | 17 |
| Commission
each year at a time designated by the Commission, an | 18 |
| electronic report of all
participant accounts in the | 19 |
| Treasurer's College Savings Pool, listing total
contributions | 20 |
| and disbursements from each individual account during the
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| previous calendar year. As soon thereafter as is possible | 22 |
| following receipt of
the Treasurer's report, the Illinois | 23 |
| Student Assistance Commission shall, in
turn, provide the | 24 |
| Treasurer with an electronic report listing those College
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| Savings Pool participants who also participate in the State's | 26 |
| prepaid tuition
program, administered by the Commission. The | 27 |
| Commission shall be responsible
for filing any combined tax | 28 |
| reports regarding State qualified savings programs
required by | 29 |
| the United States Internal Revenue Service. The Treasurer shall
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| work with the Illinois Student Assistance Commission to | 31 |
| coordinate the
marketing of the College Savings Pool and the | 32 |
| Illinois Prepaid Tuition
Program when considered beneficial by | 33 |
| the Treasurer and the Director of the
Illinois Student | 34 |
| Assistance
Commission. The Treasurer's office shall not | 35 |
| publicize or otherwise market the
College Savings Pool or | 36 |
| accept any moneys into the College Savings Pool prior
to March |
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| 1, 2000. The Treasurer shall provide a separate accounting for | 2 |
| each
designated beneficiary to each participant, the Illinois | 3 |
| Student Assistance
Commission, and the participating financial | 4 |
| institution at which the account
was processed. No interest in | 5 |
| the program may be pledged as security for a
loan.
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| The assets of the College Savings Pool and its income and | 7 |
| operation shall
be exempt from all taxation by the State of | 8 |
| Illinois and any of its
subdivisions. The accrued earnings on | 9 |
| investments in the Pool once disbursed
on behalf of a | 10 |
| designated beneficiary shall be similarly exempt from all
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| taxation by the State of Illinois and its subdivisions, so long | 12 |
| as they are
used for qualified expenses. Contributions to a | 13 |
| College Savings Pool account
during the taxable year may be | 14 |
| deducted from adjusted gross income as provided
in Section 203 | 15 |
| of the Illinois Income Tax Act. The provisions of this
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| paragraph are exempt from Section 250 of the Illinois Income | 17 |
| Tax Act.
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| The Treasurer shall adopt rules he or she considers | 19 |
| necessary for the
efficient administration of the College | 20 |
| Savings Pool. The rules shall provide
whatever additional | 21 |
| parameters and restrictions are necessary to ensure that
the | 22 |
| College Savings Pool meets all of the requirements for a | 23 |
| qualified state
tuition program under Section 529 of the | 24 |
| Internal Revenue Code (26 U.S.C. 529).
The rules shall provide | 25 |
| for the administration expenses of the pool to be paid
from its | 26 |
| earnings and for the investment earnings in excess of the | 27 |
| expenses and
all moneys collected as penalties to be credited | 28 |
| or paid monthly to the several
participants in the pool in a | 29 |
| manner which equitably reflects the differing
amounts of their | 30 |
| respective investments in the pool and the differing periods
of | 31 |
| time for which those amounts were in the custody of the pool. | 32 |
| Also, the
rules shall require the maintenance of records that | 33 |
| enable the Treasurer's
office to produce a report for each | 34 |
| account in the pool at least annually that
documents the | 35 |
| account balance and investment earnings. Notice of any proposed
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| amendments to the rules and regulations shall be provided to |
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| all participants
prior to adoption. Amendments to rules and | 2 |
| regulations shall apply only to
contributions made after the | 3 |
| adoption of the amendment.
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| Upon creating the College Savings Pool, the State Treasurer | 5 |
| shall give bond
with 2 or more sufficient sureties, payable to | 6 |
| and for the benefit of the
participants in the College Savings | 7 |
| Pool, in the penal sum of $1,000,000,
conditioned upon the | 8 |
| faithful discharge of his or her duties in relation to
the | 9 |
| College Savings Pool.
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| No contributions to the College Savings Pool authorized by | 11 |
| this Section
shall
be
considered in evaluating the financial | 12 |
| situation of the designated beneficiary
or be
deemed a | 13 |
| financial resource of or a form of financial aid or assistance | 14 |
| to the
designated beneficiary, for purposes of determining | 15 |
| eligibility for any
scholarship,
grant, or monetary assistance | 16 |
| awarded by the Illinois Student Assistance
Commission,
the | 17 |
| State, or any agency thereof; nor shall contributions to the | 18 |
| College
Savings Pool
reduce the amount of any scholarship, | 19 |
| grant, or monetary assistance that the
designated beneficiary | 20 |
| is eligible to be awarded by the Illinois Student
Assistance
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| Commission, the State, or any agency thereof in accordance with | 22 |
| the provisions
of any
State law.
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| (Source: P.A. 91-607, eff. 1-1-00; 91-829, eff. 1-1-01; 92-16, | 24 |
| eff. 6-28-01;
92-439, eff. 8-17-01; 92-626, eff. 7-11-02.)
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| Section 10. The Illinois Income Tax Act is amended by | 26 |
| changing
Section 203 as follows:
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| (35 ILCS 5/203) (from Ch. 120, par. 2-203)
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| Sec. 203. Base income defined.
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| (a) Individuals.
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| (1) In general. In the case of an individual, base | 31 |
| income means an
amount equal to the taxpayer's adjusted | 32 |
| gross income for the taxable
year as modified by paragraph | 33 |
| (2).
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| (2) Modifications. The adjusted gross income referred |
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| to in
paragraph (1) shall be modified by adding thereto the | 2 |
| sum of the
following amounts:
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| (A) An amount equal to all amounts paid or accrued | 4 |
| to the taxpayer
as interest or dividends during the | 5 |
| taxable year to the extent excluded
from gross income | 6 |
| in the computation of adjusted gross income, except | 7 |
| stock
dividends of qualified public utilities | 8 |
| described in Section 305(e) of the
Internal Revenue | 9 |
| Code;
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| (B) An amount equal to the amount of tax imposed by | 11 |
| this Act to the
extent deducted from gross income in | 12 |
| the computation of adjusted gross
income for the | 13 |
| taxable year;
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| (C) An amount equal to the amount received during | 15 |
| the taxable year
as a recovery or refund of real | 16 |
| property taxes paid with respect to the
taxpayer's | 17 |
| principal residence under the Revenue Act of
1939 and | 18 |
| for which a deduction was previously taken under | 19 |
| subparagraph (L) of
this paragraph (2) prior to July 1, | 20 |
| 1991, the retrospective application date of
Article 4 | 21 |
| of Public Act 87-17. In the case of multi-unit or | 22 |
| multi-use
structures and farm dwellings, the taxes on | 23 |
| the taxpayer's principal residence
shall be that | 24 |
| portion of the total taxes for the entire property | 25 |
| which is
attributable to such principal residence;
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| (D) An amount equal to the amount of the capital | 27 |
| gain deduction
allowable under the Internal Revenue | 28 |
| Code, to the extent deducted from gross
income in the | 29 |
| computation of adjusted gross income;
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| (D-5) An amount, to the extent not included in | 31 |
| adjusted gross income,
equal to the amount of money | 32 |
| withdrawn by the taxpayer in the taxable year from
a | 33 |
| medical care savings account and the interest earned on | 34 |
| the account in the
taxable year of a withdrawal | 35 |
| pursuant to subsection (b) of Section 20 of the
Medical | 36 |
| Care Savings Account Act or subsection (b) of Section |
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| 20 of the
Medical Care Savings Account Act of 2000;
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| (D-10) For taxable years ending after December 31, | 3 |
| 1997, an
amount equal to any eligible remediation costs | 4 |
| that the individual
deducted in computing adjusted | 5 |
| gross income and for which the
individual claims a | 6 |
| credit under subsection (l) of Section 201;
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| (D-15) For taxable years 2001 and thereafter, an | 8 |
| amount equal to the
bonus depreciation deduction (30% | 9 |
| of the adjusted basis of the qualified
property) taken | 10 |
| on the taxpayer's federal income tax return for the | 11 |
| taxable
year under subsection (k) of Section 168 of the | 12 |
| Internal Revenue Code; and
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| (D-16) If the taxpayer reports a capital gain or | 14 |
| loss on the
taxpayer's federal income tax return for | 15 |
| the taxable year based on a sale or
transfer of | 16 |
| property for which the taxpayer was required in any | 17 |
| taxable year to
make an addition modification under | 18 |
| subparagraph (D-15), then an amount equal
to the | 19 |
| aggregate amount of the deductions taken in all taxable
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| years under subparagraph (Z) with respect to that | 21 |
| property . ;
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| The taxpayer is required to make the addition | 23 |
| modification under this
subparagraph
only once with | 24 |
| respect to any one piece of property ; . and
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| (D-20)
(D-15) For taxable years beginning on or | 26 |
| after January 1,
2002, in
the
case of a distribution | 27 |
| from a qualified tuition program under Section 529 of
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| the Internal Revenue Code, other than (i) a | 29 |
| distribution from a College Savings
Pool created under | 30 |
| Section 16.5 of the State Treasurer Act or (ii) a
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| distribution from the Illinois Prepaid Tuition Trust | 32 |
| Fund, an amount equal to
the amount excluded from gross | 33 |
| income under Section 529(c)(3)(B);
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| and by deducting from the total so obtained the
sum of the | 35 |
| following amounts:
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| (E) For taxable years ending before December 31, |
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| 2001,
any amount included in such total in respect of | 2 |
| any compensation
(including but not limited to any | 3 |
| compensation paid or accrued to a
serviceman while a | 4 |
| prisoner of war or missing in action) paid to a | 5 |
| resident
by reason of being on active duty in the Armed | 6 |
| Forces of the United States
and in respect of any | 7 |
| compensation paid or accrued to a resident who as a
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| governmental employee was a prisoner of war or missing | 9 |
| in action, and in
respect of any compensation paid to a | 10 |
| resident in 1971 or thereafter for
annual training | 11 |
| performed pursuant to Sections 502 and 503, Title 32,
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| United States Code as a member of the Illinois National | 13 |
| Guard.
For taxable years ending on or after December | 14 |
| 31, 2001, any amount included in
such total in respect | 15 |
| of any compensation (including but not limited to any
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| compensation paid or accrued to a serviceman while a | 17 |
| prisoner of war or missing
in action) paid to a | 18 |
| resident by reason of being a member of any component | 19 |
| of
the Armed Forces of the United States and in respect | 20 |
| of any compensation paid
or accrued to a resident who | 21 |
| as a governmental employee was a prisoner of war
or | 22 |
| missing in action, and in respect of any compensation | 23 |
| paid to a resident in
2001 or thereafter by reason of | 24 |
| being a member of the Illinois National Guard.
The | 25 |
| provisions of this amendatory Act of the 92nd General | 26 |
| Assembly are exempt
from the provisions of Section 250;
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| (F) An amount equal to all amounts included in such | 28 |
| total pursuant
to the provisions of Sections 402(a), | 29 |
| 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | 30 |
| Internal Revenue Code, or included in such total as
| 31 |
| distributions under the provisions of any retirement | 32 |
| or disability plan for
employees of any governmental | 33 |
| agency or unit, or retirement payments to
retired | 34 |
| partners, which payments are excluded in computing net | 35 |
| earnings
from self employment by Section 1402 of the | 36 |
| Internal Revenue Code and
regulations adopted pursuant |
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| thereto;
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| (G) The valuation limitation amount;
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| (H) An amount equal to the amount of any tax | 4 |
| imposed by this Act
which was refunded to the taxpayer | 5 |
| and included in such total for the
taxable year;
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| (I) An amount equal to all amounts included in such | 7 |
| total pursuant
to the provisions of Section 111 of the | 8 |
| Internal Revenue Code as a
recovery of items previously | 9 |
| deducted from adjusted gross income in the
computation | 10 |
| of taxable income;
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| (J) An amount equal to those dividends included in | 12 |
| such total which were
paid by a corporation which | 13 |
| conducts business operations in an Enterprise
Zone or | 14 |
| zones created under the Illinois Enterprise Zone Act, | 15 |
| and conducts
substantially all of its operations in an | 16 |
| Enterprise Zone or zones;
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| (K) An amount equal to those dividends included in | 18 |
| such total that
were paid by a corporation that | 19 |
| conducts business operations in a federally
designated | 20 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 21 |
| High Impact
Business located in Illinois; provided | 22 |
| that dividends eligible for the
deduction provided in | 23 |
| subparagraph (J) of paragraph (2) of this subsection
| 24 |
| shall not be eligible for the deduction provided under | 25 |
| this subparagraph
(K);
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| (L) For taxable years ending after December 31, | 27 |
| 1983, an amount equal to
all social security benefits | 28 |
| and railroad retirement benefits included in
such | 29 |
| total pursuant to Sections 72(r) and 86 of the Internal | 30 |
| Revenue Code;
| 31 |
| (M) With the exception of any amounts subtracted | 32 |
| under subparagraph
(N), an amount equal to the sum of | 33 |
| all amounts disallowed as
deductions by (i) Sections | 34 |
| 171(a) (2), and 265(2) of the Internal Revenue Code
of | 35 |
| 1954, as now or hereafter amended, and all amounts of | 36 |
| expenses allocable
to interest and disallowed as |
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| deductions by Section 265(1) of the Internal
Revenue | 2 |
| Code of 1954, as now or hereafter amended;
and (ii) for | 3 |
| taxable years
ending on or after August 13, 1999, | 4 |
| Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 5 |
| the Internal Revenue Code; the provisions of this
| 6 |
| subparagraph are exempt from the provisions of Section | 7 |
| 250;
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| (N) An amount equal to all amounts included in such | 9 |
| total which are
exempt from taxation by this State | 10 |
| either by reason of its statutes or
Constitution
or by | 11 |
| reason of the Constitution, treaties or statutes of the | 12 |
| United States;
provided that, in the case of any | 13 |
| statute of this State that exempts income
derived from | 14 |
| bonds or other obligations from the tax imposed under | 15 |
| this Act,
the amount exempted shall be the interest net | 16 |
| of bond premium amortization;
| 17 |
| (O) An amount equal to any contribution made to a | 18 |
| job training
project established pursuant to the Tax | 19 |
| Increment Allocation Redevelopment Act;
| 20 |
| (P) An amount equal to the amount of the deduction | 21 |
| used to compute the
federal income tax credit for | 22 |
| restoration of substantial amounts held under
claim of | 23 |
| right for the taxable year pursuant to Section 1341 of | 24 |
| the
Internal Revenue Code of 1986;
| 25 |
| (Q) An amount equal to any amounts included in such | 26 |
| total, received by
the taxpayer as an acceleration in | 27 |
| the payment of life, endowment or annuity
benefits in | 28 |
| advance of the time they would otherwise be payable as | 29 |
| an indemnity
for a terminal illness;
| 30 |
| (R) An amount equal to the amount of any federal or | 31 |
| State bonus paid
to veterans of the Persian Gulf War;
| 32 |
| (S) An amount, to the extent included in adjusted | 33 |
| gross income, equal
to the amount of a contribution | 34 |
| made in the taxable year on behalf of the
taxpayer to a | 35 |
| medical care savings account established under the | 36 |
| Medical Care
Savings Account Act or the Medical Care |
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| Savings Account Act of 2000 to the
extent the | 2 |
| contribution is accepted by the account
administrator | 3 |
| as provided in that Act;
| 4 |
| (T) An amount, to the extent included in adjusted | 5 |
| gross income, equal to
the amount of interest earned in | 6 |
| the taxable year on a medical care savings
account | 7 |
| established under the Medical Care Savings Account Act | 8 |
| or the Medical
Care Savings Account Act of 2000 on | 9 |
| behalf of the
taxpayer, other than interest added | 10 |
| pursuant to item (D-5) of this paragraph
(2);
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| (U) For one taxable year beginning on or after | 12 |
| January 1,
1994, an
amount equal to the total amount of | 13 |
| tax imposed and paid under subsections (a)
and (b) of | 14 |
| Section 201 of this Act on grant amounts received by | 15 |
| the taxpayer
under the Nursing Home Grant Assistance | 16 |
| Act during the taxpayer's taxable years
1992 and 1993;
| 17 |
| (V) Beginning with tax years ending on or after | 18 |
| December 31, 1995 and
ending with tax years ending on | 19 |
| or before December 31, 2004, an amount equal to
the | 20 |
| amount paid by a taxpayer who is a
self-employed | 21 |
| taxpayer, a partner of a partnership, or a
shareholder | 22 |
| in a Subchapter S corporation for health insurance or | 23 |
| long-term
care insurance for that taxpayer or that | 24 |
| taxpayer's spouse or dependents, to
the extent that the | 25 |
| amount paid for that health insurance or long-term care
| 26 |
| insurance may be deducted under Section 213 of the | 27 |
| Internal Revenue Code of
1986, has not been deducted on | 28 |
| the federal income tax return of the taxpayer,
and does | 29 |
| not exceed the taxable income attributable to that | 30 |
| taxpayer's income,
self-employment income, or | 31 |
| Subchapter S corporation income; except that no
| 32 |
| deduction shall be allowed under this item (V) if the | 33 |
| taxpayer is eligible to
participate in any health | 34 |
| insurance or long-term care insurance plan of an
| 35 |
| employer of the taxpayer or the taxpayer's
spouse. The | 36 |
| amount of the health insurance and long-term care |
|
|
|
HB4914 Enrolled |
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LRB093 15099 SJM 40689 b |
|
| 1 |
| insurance
subtracted under this item (V) shall be | 2 |
| determined by multiplying total
health insurance and | 3 |
| long-term care insurance premiums paid by the taxpayer
| 4 |
| times a number that represents the fractional | 5 |
| percentage of eligible medical
expenses under Section | 6 |
| 213 of the Internal Revenue Code of 1986 not actually
| 7 |
| deducted on the taxpayer's federal income tax return;
| 8 |
| (W) For taxable years beginning on or after January | 9 |
| 1, 1998,
all amounts included in the taxpayer's federal | 10 |
| gross income
in the taxable year from amounts converted | 11 |
| from a regular IRA to a Roth IRA.
This paragraph is | 12 |
| exempt from the provisions of Section
250;
| 13 |
| (X) For taxable year 1999 and thereafter, an amount | 14 |
| equal to the
amount of any (i) distributions, to the | 15 |
| extent includible in gross income for
federal income | 16 |
| tax purposes, made to the taxpayer because of his or | 17 |
| her status
as a victim of persecution for racial or | 18 |
| religious reasons by Nazi Germany or
any other Axis | 19 |
| regime or as an heir of the victim and (ii) items
of | 20 |
| income, to the extent
includible in gross income for | 21 |
| federal income tax purposes, attributable to,
derived | 22 |
| from or in any way related to assets stolen from, | 23 |
| hidden from, or
otherwise lost to a victim of
| 24 |
| persecution for racial or religious reasons by Nazi | 25 |
| Germany or any other Axis
regime immediately prior to, | 26 |
| during, and immediately after World War II,
including, | 27 |
| but
not limited to, interest on the proceeds receivable | 28 |
| as insurance
under policies issued to a victim of | 29 |
| persecution for racial or religious
reasons
by Nazi | 30 |
| Germany or any other Axis regime by European insurance | 31 |
| companies
immediately prior to and during World War II;
| 32 |
| provided, however, this subtraction from federal | 33 |
| adjusted gross income does not
apply to assets acquired | 34 |
| with such assets or with the proceeds from the sale of
| 35 |
| such assets; provided, further, this paragraph shall | 36 |
| only apply to a taxpayer
who was the first recipient of |
|
|
|
HB4914 Enrolled |
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LRB093 15099 SJM 40689 b |
|
| 1 |
| such assets after their recovery and who is a
victim of | 2 |
| persecution for racial or religious reasons
by Nazi | 3 |
| Germany or any other Axis regime or as an heir of the | 4 |
| victim. The
amount of and the eligibility for any | 5 |
| public assistance, benefit, or
similar entitlement is | 6 |
| not affected by the inclusion of items (i) and (ii) of
| 7 |
| this paragraph in gross income for federal income tax | 8 |
| purposes.
This paragraph is exempt from the provisions | 9 |
| of Section 250;
| 10 |
| (Y) For taxable years beginning on or after January | 11 |
| 1, 2002 and ending
on or before December 31, 2004 ,
| 12 |
| moneys contributed in the taxable year to a College | 13 |
| Savings Pool account under
Section 16.5 of the State | 14 |
| Treasurer Act, except that amounts excluded from
gross | 15 |
| income under Section 529(c)(3) (C) (i) of the Internal | 16 |
| Revenue Code
shall not be considered moneys | 17 |
| contributed under this subparagraph (Y). For taxable | 18 |
| years beginning on or after January 1, 2005, a maximum | 19 |
| of $10,000
contributed
in the
taxable year to (i) a | 20 |
| College Savings Pool account under Section 16.5 of the
| 21 |
| State
Treasurer Act or (ii) the Illinois Prepaid | 22 |
| Tuition Trust Fund,
except that
amounts excluded from | 23 |
| gross income under Section 529(c)(3)(C)(i) of the
| 24 |
| Internal
Revenue Code shall not be considered moneys | 25 |
| contributed under this subparagraph
(Y). This
| 26 |
| subparagraph (Y) is exempt from the provisions of | 27 |
| Section 250;
| 28 |
| (Z) For taxable years 2001 and thereafter, for the | 29 |
| taxable year in
which the bonus depreciation deduction | 30 |
| (30% of the adjusted basis of the
qualified property) | 31 |
| is taken on the taxpayer's federal income tax return | 32 |
| under
subsection (k) of Section 168 of the Internal | 33 |
| Revenue Code and for each
applicable taxable year | 34 |
| thereafter, an amount equal to "x", where:
| 35 |
| (1) "y" equals the amount of the depreciation | 36 |
| deduction taken for the
taxable year
on the |
|
|
|
HB4914 Enrolled |
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LRB093 15099 SJM 40689 b |
|
| 1 |
| taxpayer's federal income tax return on property | 2 |
| for which the bonus
depreciation deduction (30% of | 3 |
| the adjusted basis of the qualified property)
was | 4 |
| taken in any year under subsection (k) of Section | 5 |
| 168 of the Internal
Revenue Code, but not including | 6 |
| the bonus depreciation deduction; and
| 7 |
| (2) "x" equals "y" multiplied by 30 and then | 8 |
| divided by 70 (or "y"
multiplied by 0.429).
| 9 |
| The aggregate amount deducted under this | 10 |
| subparagraph in all taxable
years for any one piece of | 11 |
| property may not exceed the amount of the bonus
| 12 |
| depreciation deduction (30% of the adjusted basis of | 13 |
| the qualified property)
taken on that property on the | 14 |
| taxpayer's federal income tax return under
subsection | 15 |
| (k) of Section 168 of the Internal Revenue Code; and
| 16 |
| (AA) If the taxpayer reports a capital gain or loss | 17 |
| on the taxpayer's
federal income tax return for the | 18 |
| taxable year based on a sale or transfer of
property | 19 |
| for which the taxpayer was required in any taxable year | 20 |
| to make an
addition modification under subparagraph | 21 |
| (D-15), then an amount equal to that
addition | 22 |
| modification.
| 23 |
| The taxpayer is allowed to take the deduction under | 24 |
| this subparagraph
only once with respect to any one | 25 |
| piece of property; and
| 26 |
| (BB)
(Z) Any amount included in adjusted gross | 27 |
| income, other
than
salary,
received by a driver in a | 28 |
| ridesharing arrangement using a motor vehicle.
| 29 |
| (b) Corporations.
| 30 |
| (1) In general. In the case of a corporation, base | 31 |
| income means an
amount equal to the taxpayer's taxable | 32 |
| income for the taxable year as
modified by paragraph (2).
| 33 |
| (2) Modifications. The taxable income referred to in | 34 |
| paragraph (1)
shall be modified by adding thereto the sum | 35 |
| of the following amounts:
|
|
|
|
HB4914 Enrolled |
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LRB093 15099 SJM 40689 b |
|
| 1 |
| (A) An amount equal to all amounts paid or accrued | 2 |
| to the taxpayer
as interest and all distributions | 3 |
| received from regulated investment
companies during | 4 |
| the taxable year to the extent excluded from gross
| 5 |
| income in the computation of taxable income;
| 6 |
| (B) An amount equal to the amount of tax imposed by | 7 |
| this Act to the
extent deducted from gross income in | 8 |
| the computation of taxable income
for the taxable year;
| 9 |
| (C) In the case of a regulated investment company, | 10 |
| an amount equal to
the excess of (i) the net long-term | 11 |
| capital gain for the taxable year, over
(ii) the amount | 12 |
| of the capital gain dividends designated as such in | 13 |
| accordance
with Section 852(b)(3)(C) of the Internal | 14 |
| Revenue Code and any amount
designated under Section | 15 |
| 852(b)(3)(D) of the Internal Revenue Code,
| 16 |
| attributable to the taxable year (this amendatory Act | 17 |
| of 1995
(Public Act 89-89) is declarative of existing | 18 |
| law and is not a new
enactment);
| 19 |
| (D) The amount of any net operating loss deduction | 20 |
| taken in arriving
at taxable income, other than a net | 21 |
| operating loss carried forward from a
taxable year | 22 |
| ending prior to December 31, 1986;
| 23 |
| (E) For taxable years in which a net operating loss | 24 |
| carryback or
carryforward from a taxable year ending | 25 |
| prior to December 31, 1986 is an
element of taxable | 26 |
| income under paragraph (1) of subsection (e) or
| 27 |
| subparagraph (E) of paragraph (2) of subsection (e), | 28 |
| the amount by which
addition modifications other than | 29 |
| those provided by this subparagraph (E)
exceeded | 30 |
| subtraction modifications in such earlier taxable | 31 |
| year, with the
following limitations applied in the | 32 |
| order that they are listed:
| 33 |
| (i) the addition modification relating to the | 34 |
| net operating loss
carried back or forward to the | 35 |
| taxable year from any taxable year ending
prior to | 36 |
| December 31, 1986 shall be reduced by the amount of |
|
|
|
HB4914 Enrolled |
- 17 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| addition
modification under this subparagraph (E) | 2 |
| which related to that net operating
loss and which | 3 |
| was taken into account in calculating the base | 4 |
| income of an
earlier taxable year, and
| 5 |
| (ii) the addition modification relating to the | 6 |
| net operating loss
carried back or forward to the | 7 |
| taxable year from any taxable year ending
prior to | 8 |
| December 31, 1986 shall not exceed the amount of | 9 |
| such carryback or
carryforward;
| 10 |
| For taxable years in which there is a net operating | 11 |
| loss carryback or
carryforward from more than one other | 12 |
| taxable year ending prior to December
31, 1986, the | 13 |
| addition modification provided in this subparagraph | 14 |
| (E) shall
be the sum of the amounts computed | 15 |
| independently under the preceding
provisions of this | 16 |
| subparagraph (E) for each such taxable year;
| 17 |
| (E-5) For taxable years ending after December 31, | 18 |
| 1997, an
amount equal to any eligible remediation costs | 19 |
| that the corporation
deducted in computing adjusted | 20 |
| gross income and for which the
corporation claims a | 21 |
| credit under subsection (l) of Section 201;
| 22 |
| (E-10) For taxable years 2001 and thereafter, an | 23 |
| amount equal to the
bonus depreciation deduction (30% | 24 |
| of the adjusted basis of the qualified
property) taken | 25 |
| on the taxpayer's federal income tax return for the | 26 |
| taxable
year under subsection (k) of Section 168 of the | 27 |
| Internal Revenue Code; and
| 28 |
| (E-11) If the taxpayer reports a capital gain or | 29 |
| loss on the
taxpayer's federal income tax return for | 30 |
| the taxable year based on a sale or
transfer of | 31 |
| property for which the taxpayer was required in any | 32 |
| taxable year to
make an addition modification under | 33 |
| subparagraph (E-10), then an amount equal
to the | 34 |
| aggregate amount of the deductions taken in all taxable
| 35 |
| years under subparagraph (T) with respect to that | 36 |
| property . ;
|
|
|
|
HB4914 Enrolled |
- 18 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| The taxpayer is required to make the addition | 2 |
| modification under this
subparagraph
only once with | 3 |
| respect to any one piece of property;
| 4 |
| and by deducting from the total so obtained the sum of the | 5 |
| following
amounts:
| 6 |
| (F) An amount equal to the amount of any tax | 7 |
| imposed by this Act
which was refunded to the taxpayer | 8 |
| and included in such total for the
taxable year;
| 9 |
| (G) An amount equal to any amount included in such | 10 |
| total under
Section 78 of the Internal Revenue Code;
| 11 |
| (H) In the case of a regulated investment company, | 12 |
| an amount equal
to the amount of exempt interest | 13 |
| dividends as defined in subsection (b)
(5) of Section | 14 |
| 852 of the Internal Revenue Code, paid to shareholders
| 15 |
| for the taxable year;
| 16 |
| (I) With the exception of any amounts subtracted | 17 |
| under subparagraph
(J),
an amount equal to the sum of | 18 |
| all amounts disallowed as
deductions by (i) Sections | 19 |
| 171(a) (2), and 265(a)(2) and amounts disallowed as
| 20 |
| interest expense by Section 291(a)(3) of the Internal | 21 |
| Revenue Code, as now
or hereafter amended, and all | 22 |
| amounts of expenses allocable to interest and
| 23 |
| disallowed as deductions by Section 265(a)(1) of the | 24 |
| Internal Revenue Code,
as now or hereafter amended;
and | 25 |
| (ii) for taxable years
ending on or after August 13, | 26 |
| 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and | 27 |
| 832(b)(5)(B)(i) of the Internal Revenue Code; the
| 28 |
| provisions of this
subparagraph are exempt from the | 29 |
| provisions of Section 250;
| 30 |
| (J) An amount equal to all amounts included in such | 31 |
| total which are
exempt from taxation by this State | 32 |
| either by reason of its statutes or
Constitution
or by | 33 |
| reason of the Constitution, treaties or statutes of the | 34 |
| United States;
provided that, in the case of any | 35 |
| statute of this State that exempts income
derived from | 36 |
| bonds or other obligations from the tax imposed under |
|
|
|
HB4914 Enrolled |
- 19 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| this Act,
the amount exempted shall be the interest net | 2 |
| of bond premium amortization;
| 3 |
| (K) An amount equal to those dividends included in | 4 |
| such total
which were paid by a corporation which | 5 |
| conducts
business operations in an Enterprise Zone or | 6 |
| zones created under
the Illinois Enterprise Zone Act | 7 |
| and conducts substantially all of its
operations in an | 8 |
| Enterprise Zone or zones;
| 9 |
| (L) An amount equal to those dividends included in | 10 |
| such total that
were paid by a corporation that | 11 |
| conducts business operations in a federally
designated | 12 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 13 |
| High Impact
Business located in Illinois; provided | 14 |
| that dividends eligible for the
deduction provided in | 15 |
| subparagraph (K) of paragraph 2 of this subsection
| 16 |
| shall not be eligible for the deduction provided under | 17 |
| this subparagraph
(L);
| 18 |
| (M) For any taxpayer that is a financial | 19 |
| organization within the meaning
of Section 304(c) of | 20 |
| this Act, an amount included in such total as interest
| 21 |
| income from a loan or loans made by such taxpayer to a | 22 |
| borrower, to the extent
that such a loan is secured by | 23 |
| property which is eligible for the Enterprise
Zone | 24 |
| Investment Credit. To determine the portion of a loan | 25 |
| or loans that is
secured by property eligible for a | 26 |
| Section 201(f) investment
credit to the borrower, the | 27 |
| entire principal amount of the loan or loans
between | 28 |
| the taxpayer and the borrower should be divided into | 29 |
| the basis of the
Section 201(f) investment credit | 30 |
| property which secures the
loan or loans, using for | 31 |
| this purpose the original basis of such property on
the | 32 |
| date that it was placed in service in the
Enterprise | 33 |
| Zone. The subtraction modification available to | 34 |
| taxpayer in any
year under this subsection shall be | 35 |
| that portion of the total interest paid
by the borrower | 36 |
| with respect to such loan attributable to the eligible
|
|
|
|
HB4914 Enrolled |
- 20 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| property as calculated under the previous sentence;
| 2 |
| (M-1) For any taxpayer that is a financial | 3 |
| organization within the
meaning of Section 304(c) of | 4 |
| this Act, an amount included in such total as
interest | 5 |
| income from a loan or loans made by such taxpayer to a | 6 |
| borrower,
to the extent that such a loan is secured by | 7 |
| property which is eligible for
the High Impact Business | 8 |
| Investment Credit. To determine the portion of a
loan | 9 |
| or loans that is secured by property eligible for a | 10 |
| Section 201(h) investment credit to the borrower, the | 11 |
| entire principal amount of
the loan or loans between | 12 |
| the taxpayer and the borrower should be divided into
| 13 |
| the basis of the Section 201(h) investment credit | 14 |
| property which
secures the loan or loans, using for | 15 |
| this purpose the original basis of such
property on the | 16 |
| date that it was placed in service in a federally | 17 |
| designated
Foreign Trade Zone or Sub-Zone located in | 18 |
| Illinois. No taxpayer that is
eligible for the | 19 |
| deduction provided in subparagraph (M) of paragraph | 20 |
| (2) of
this subsection shall be eligible for the | 21 |
| deduction provided under this
subparagraph (M-1). The | 22 |
| subtraction modification available to taxpayers in
any | 23 |
| year under this subsection shall be that portion of the | 24 |
| total interest
paid by the borrower with respect to | 25 |
| such loan attributable to the eligible
property as | 26 |
| calculated under the previous sentence;
| 27 |
| (N) Two times any contribution made during the | 28 |
| taxable year to a
designated zone organization to the | 29 |
| extent that the contribution (i)
qualifies as a | 30 |
| charitable contribution under subsection (c) of | 31 |
| Section 170
of the Internal Revenue Code and (ii) must, | 32 |
| by its terms, be used for a
project approved by the | 33 |
| Department of Commerce and Economic Opportunity
| 34 |
| Community Affairs under Section 11 of the Illinois | 35 |
| Enterprise Zone Act;
| 36 |
| (O) An amount equal to: (i) 85% for taxable years |
|
|
|
HB4914 Enrolled |
- 21 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| ending on or before
December 31, 1992, or, a percentage | 2 |
| equal to the percentage allowable under
Section | 3 |
| 243(a)(1) of the Internal Revenue Code of 1986 for | 4 |
| taxable years ending
after December 31, 1992, of the | 5 |
| amount by which dividends included in taxable
income | 6 |
| and received from a corporation that is not created or | 7 |
| organized under
the laws of the United States or any | 8 |
| state or political subdivision thereof,
including, for | 9 |
| taxable years ending on or after December 31, 1988, | 10 |
| dividends
received or deemed received or paid or deemed | 11 |
| paid under Sections 951 through
964 of the Internal | 12 |
| Revenue Code, exceed the amount of the modification
| 13 |
| provided under subparagraph (G) of paragraph (2) of | 14 |
| this subsection (b) which
is related to such dividends; | 15 |
| plus (ii) 100% of the amount by which dividends,
| 16 |
| included in taxable income and received, including, | 17 |
| for taxable years ending on
or after December 31, 1988, | 18 |
| dividends received or deemed received or paid or
deemed | 19 |
| paid under Sections 951 through 964 of the Internal | 20 |
| Revenue Code, from
any such corporation specified in | 21 |
| clause (i) that would but for the provisions
of Section | 22 |
| 1504 (b) (3) of the Internal Revenue Code be treated as | 23 |
| a member of
the affiliated group which includes the | 24 |
| dividend recipient, exceed the amount
of the | 25 |
| modification provided under subparagraph (G) of | 26 |
| paragraph (2) of this
subsection (b) which is related | 27 |
| to such dividends;
| 28 |
| (P) An amount equal to any contribution made to a | 29 |
| job training project
established pursuant to the Tax | 30 |
| Increment Allocation Redevelopment Act;
| 31 |
| (Q) An amount equal to the amount of the deduction | 32 |
| used to compute the
federal income tax credit for | 33 |
| restoration of substantial amounts held under
claim of | 34 |
| right for the taxable year pursuant to Section 1341 of | 35 |
| the
Internal Revenue Code of 1986;
| 36 |
| (R) In the case of an attorney-in-fact with respect |
|
|
|
HB4914 Enrolled |
- 22 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| to whom an
interinsurer or a reciprocal insurer has | 2 |
| made the election under Section 835 of
the Internal | 3 |
| Revenue Code, 26 U.S.C. 835, an amount equal to the | 4 |
| excess, if
any, of the amounts paid or incurred by that | 5 |
| interinsurer or reciprocal insurer
in the taxable year | 6 |
| to the attorney-in-fact over the deduction allowed to | 7 |
| that
interinsurer or reciprocal insurer with respect | 8 |
| to the attorney-in-fact under
Section 835(b) of the | 9 |
| Internal Revenue Code for the taxable year;
| 10 |
| (S) For taxable years ending on or after December | 11 |
| 31, 1997, in the
case of a Subchapter
S corporation, an | 12 |
| amount equal to all amounts of income allocable to a
| 13 |
| shareholder subject to the Personal Property Tax | 14 |
| Replacement Income Tax imposed
by subsections (c) and | 15 |
| (d) of Section 201 of this Act, including amounts
| 16 |
| allocable to organizations exempt from federal income | 17 |
| tax by reason of Section
501(a) of the Internal Revenue | 18 |
| Code. This subparagraph (S) is exempt from
the | 19 |
| provisions of Section 250;
| 20 |
| (T) For taxable years 2001 and thereafter, for the | 21 |
| taxable year in
which the bonus depreciation deduction | 22 |
| (30% of the adjusted basis of the
qualified property) | 23 |
| is taken on the taxpayer's federal income tax return | 24 |
| under
subsection (k) of Section 168 of the Internal | 25 |
| Revenue Code and for each
applicable taxable year | 26 |
| thereafter, an amount equal to "x", where:
| 27 |
| (1) "y" equals the amount of the depreciation | 28 |
| deduction taken for the
taxable year
on the | 29 |
| taxpayer's federal income tax return on property | 30 |
| for which the bonus
depreciation deduction (30% of | 31 |
| the adjusted basis of the qualified property)
was | 32 |
| taken in any year under subsection (k) of Section | 33 |
| 168 of the Internal
Revenue Code, but not including | 34 |
| the bonus depreciation deduction; and
| 35 |
| (2) "x" equals "y" multiplied by 30 and then | 36 |
| divided by 70 (or "y"
multiplied by 0.429).
|
|
|
|
HB4914 Enrolled |
- 23 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| The aggregate amount deducted under this | 2 |
| subparagraph in all taxable
years for any one piece of | 3 |
| property may not exceed the amount of the bonus
| 4 |
| depreciation deduction (30% of the adjusted basis of | 5 |
| the qualified property)
taken on that property on the | 6 |
| taxpayer's federal income tax return under
subsection | 7 |
| (k) of Section 168 of the Internal Revenue Code; and
| 8 |
| (U) If the taxpayer reports a capital gain or loss | 9 |
| on the taxpayer's
federal income tax return for the | 10 |
| taxable year based on a sale or transfer of
property | 11 |
| for which the taxpayer was required in any taxable year | 12 |
| to make an
addition modification under subparagraph | 13 |
| (E-10), then an amount equal to that
addition | 14 |
| modification.
| 15 |
| The taxpayer is allowed to take the deduction under | 16 |
| this subparagraph
only once with respect to any one | 17 |
| piece of property.
| 18 |
| (3) Special rule. For purposes of paragraph (2) (A), | 19 |
| "gross income"
in the case of a life insurance company, for | 20 |
| tax years ending on and after
December 31, 1994,
shall mean | 21 |
| the gross investment income for the taxable year.
| 22 |
| (c) Trusts and estates.
| 23 |
| (1) In general. In the case of a trust or estate, base | 24 |
| income means
an amount equal to the taxpayer's taxable | 25 |
| income for the taxable year as
modified by paragraph (2).
| 26 |
| (2) Modifications. Subject to the provisions of | 27 |
| paragraph (3), the
taxable income referred to in paragraph | 28 |
| (1) shall be modified by adding
thereto the sum of the | 29 |
| following amounts:
| 30 |
| (A) An amount equal to all amounts paid or accrued | 31 |
| to the taxpayer
as interest or dividends during the | 32 |
| taxable year to the extent excluded
from gross income | 33 |
| in the computation of taxable income;
| 34 |
| (B) In the case of (i) an estate, $600; (ii) a | 35 |
| trust which, under
its governing instrument, is |
|
|
|
HB4914 Enrolled |
- 24 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| required to distribute all of its income
currently, | 2 |
| $300; and (iii) any other trust, $100, but in each such | 3 |
| case,
only to the extent such amount was deducted in | 4 |
| the computation of
taxable income;
| 5 |
| (C) An amount equal to the amount of tax imposed by | 6 |
| this Act to the
extent deducted from gross income in | 7 |
| the computation of taxable income
for the taxable year;
| 8 |
| (D) The amount of any net operating loss deduction | 9 |
| taken in arriving at
taxable income, other than a net | 10 |
| operating loss carried forward from a
taxable year | 11 |
| ending prior to December 31, 1986;
| 12 |
| (E) For taxable years in which a net operating loss | 13 |
| carryback or
carryforward from a taxable year ending | 14 |
| prior to December 31, 1986 is an
element of taxable | 15 |
| income under paragraph (1) of subsection (e) or | 16 |
| subparagraph
(E) of paragraph (2) of subsection (e), | 17 |
| the amount by which addition
modifications other than | 18 |
| those provided by this subparagraph (E) exceeded
| 19 |
| subtraction modifications in such taxable year, with | 20 |
| the following limitations
applied in the order that | 21 |
| they are listed:
| 22 |
| (i) the addition modification relating to the | 23 |
| net operating loss
carried back or forward to the | 24 |
| taxable year from any taxable year ending
prior to | 25 |
| December 31, 1986 shall be reduced by the amount of | 26 |
| addition
modification under this subparagraph (E) | 27 |
| which related to that net
operating loss and which | 28 |
| was taken into account in calculating the base
| 29 |
| income of an earlier taxable year, and
| 30 |
| (ii) the addition modification relating to the | 31 |
| net operating loss
carried back or forward to the | 32 |
| taxable year from any taxable year ending
prior to | 33 |
| December 31, 1986 shall not exceed the amount of | 34 |
| such carryback or
carryforward;
| 35 |
| For taxable years in which there is a net operating | 36 |
| loss carryback or
carryforward from more than one other |
|
|
|
HB4914 Enrolled |
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LRB093 15099 SJM 40689 b |
|
| 1 |
| taxable year ending prior to December
31, 1986, the | 2 |
| addition modification provided in this subparagraph | 3 |
| (E) shall
be the sum of the amounts computed | 4 |
| independently under the preceding
provisions of this | 5 |
| subparagraph (E) for each such taxable year;
| 6 |
| (F) For taxable years ending on or after January 1, | 7 |
| 1989, an amount
equal to the tax deducted pursuant to | 8 |
| Section 164 of the Internal Revenue
Code if the trust | 9 |
| or estate is claiming the same tax for purposes of the
| 10 |
| Illinois foreign tax credit under Section 601 of this | 11 |
| Act;
| 12 |
| (G) An amount equal to the amount of the capital | 13 |
| gain deduction
allowable under the Internal Revenue | 14 |
| Code, to the extent deducted from
gross income in the | 15 |
| computation of taxable income;
| 16 |
| (G-5) For taxable years ending after December 31, | 17 |
| 1997, an
amount equal to any eligible remediation costs | 18 |
| that the trust or estate
deducted in computing adjusted | 19 |
| gross income and for which the trust
or estate claims a | 20 |
| credit under subsection (l) of Section 201;
| 21 |
| (G-10) For taxable years 2001 and thereafter, an | 22 |
| amount equal to the
bonus depreciation deduction (30% | 23 |
| of the adjusted basis of the qualified
property) taken | 24 |
| on the taxpayer's federal income tax return for the | 25 |
| taxable
year under subsection (k) of Section 168 of the | 26 |
| Internal Revenue Code; and
| 27 |
| (G-11) If the taxpayer reports a capital gain or | 28 |
| loss on the
taxpayer's federal income tax return for | 29 |
| the taxable year based on a sale or
transfer of | 30 |
| property for which the taxpayer was required in any | 31 |
| taxable year to
make an addition modification under | 32 |
| subparagraph (G-10), then an amount equal
to the | 33 |
| aggregate amount of the deductions taken in all taxable
| 34 |
| years under subparagraph (R) with respect to that | 35 |
| property . ;
| 36 |
| The taxpayer is required to make the addition |
|
|
|
HB4914 Enrolled |
- 26 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| modification under this
subparagraph
only once with | 2 |
| respect to any one piece of property;
| 3 |
| and by deducting from the total so obtained the sum of the | 4 |
| following
amounts:
| 5 |
| (H) An amount equal to all amounts included in such | 6 |
| total pursuant
to the provisions of Sections 402(a), | 7 |
| 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | 8 |
| Internal Revenue Code or included in such total as
| 9 |
| distributions under the provisions of any retirement | 10 |
| or disability plan for
employees of any governmental | 11 |
| agency or unit, or retirement payments to
retired | 12 |
| partners, which payments are excluded in computing net | 13 |
| earnings
from self employment by Section 1402 of the | 14 |
| Internal Revenue Code and
regulations adopted pursuant | 15 |
| thereto;
| 16 |
| (I) The valuation limitation amount;
| 17 |
| (J) An amount equal to the amount of any tax | 18 |
| imposed by this Act
which was refunded to the taxpayer | 19 |
| and included in such total for the
taxable year;
| 20 |
| (K) An amount equal to all amounts included in | 21 |
| taxable income as
modified by subparagraphs (A), (B), | 22 |
| (C), (D), (E), (F) and (G) which
are exempt from | 23 |
| taxation by this State either by reason of its statutes | 24 |
| or
Constitution
or by reason of the Constitution, | 25 |
| treaties or statutes of the United States;
provided | 26 |
| that, in the case of any statute of this State that | 27 |
| exempts income
derived from bonds or other obligations | 28 |
| from the tax imposed under this Act,
the amount | 29 |
| exempted shall be the interest net of bond premium | 30 |
| amortization;
| 31 |
| (L) With the exception of any amounts subtracted | 32 |
| under subparagraph
(K),
an amount equal to the sum of | 33 |
| all amounts disallowed as
deductions by (i) Sections | 34 |
| 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | 35 |
| as now or hereafter amended, and all amounts of | 36 |
| expenses allocable
to interest and disallowed as |
|
|
|
HB4914 Enrolled |
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LRB093 15099 SJM 40689 b |
|
| 1 |
| deductions by Section 265(1) of the Internal
Revenue | 2 |
| Code of 1954, as now or hereafter amended;
and (ii) for | 3 |
| taxable years
ending on or after August 13, 1999, | 4 |
| Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 5 |
| the Internal Revenue Code; the provisions of this
| 6 |
| subparagraph are exempt from the provisions of Section | 7 |
| 250;
| 8 |
| (M) An amount equal to those dividends included in | 9 |
| such total
which were paid by a corporation which | 10 |
| conducts business operations in an
Enterprise Zone or | 11 |
| zones created under the Illinois Enterprise Zone Act | 12 |
| and
conducts substantially all of its operations in an | 13 |
| Enterprise Zone or Zones;
| 14 |
| (N) An amount equal to any contribution made to a | 15 |
| job training
project established pursuant to the Tax | 16 |
| Increment Allocation
Redevelopment Act;
| 17 |
| (O) An amount equal to those dividends included in | 18 |
| such total
that were paid by a corporation that | 19 |
| conducts business operations in a
federally designated | 20 |
| Foreign Trade Zone or Sub-Zone and that is designated
a | 21 |
| High Impact Business located in Illinois; provided | 22 |
| that dividends eligible
for the deduction provided in | 23 |
| subparagraph (M) of paragraph (2) of this
subsection | 24 |
| shall not be eligible for the deduction provided under | 25 |
| this
subparagraph (O);
| 26 |
| (P) An amount equal to the amount of the deduction | 27 |
| used to compute the
federal income tax credit for | 28 |
| restoration of substantial amounts held under
claim of | 29 |
| right for the taxable year pursuant to Section 1341 of | 30 |
| the
Internal Revenue Code of 1986;
| 31 |
| (Q) For taxable year 1999 and thereafter, an amount | 32 |
| equal to the
amount of any
(i) distributions, to the | 33 |
| extent includible in gross income for
federal income | 34 |
| tax purposes, made to the taxpayer because of
his or | 35 |
| her status as a victim of
persecution for racial or | 36 |
| religious reasons by Nazi Germany or any other Axis
|
|
|
|
HB4914 Enrolled |
- 28 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| regime or as an heir of the victim and (ii) items
of | 2 |
| income, to the extent
includible in gross income for | 3 |
| federal income tax purposes, attributable to,
derived | 4 |
| from or in any way related to assets stolen from, | 5 |
| hidden from, or
otherwise lost to a victim of
| 6 |
| persecution for racial or religious reasons by Nazi
| 7 |
| Germany or any other Axis regime
immediately prior to, | 8 |
| during, and immediately after World War II, including,
| 9 |
| but
not limited to, interest on the proceeds receivable | 10 |
| as insurance
under policies issued to a victim of | 11 |
| persecution for racial or religious
reasons by Nazi | 12 |
| Germany or any other Axis regime by European insurance
| 13 |
| companies
immediately prior to and during World War II;
| 14 |
| provided, however, this subtraction from federal | 15 |
| adjusted gross income does not
apply to assets acquired | 16 |
| with such assets or with the proceeds from the sale of
| 17 |
| such assets; provided, further, this paragraph shall | 18 |
| only apply to a taxpayer
who was the first recipient of | 19 |
| such assets after their recovery and who is a
victim of
| 20 |
| persecution for racial or religious reasons
by Nazi | 21 |
| Germany or any other Axis regime or as an heir of the | 22 |
| victim. The
amount of and the eligibility for any | 23 |
| public assistance, benefit, or
similar entitlement is | 24 |
| not affected by the inclusion of items (i) and (ii) of
| 25 |
| this paragraph in gross income for federal income tax | 26 |
| purposes.
This paragraph is exempt from the provisions | 27 |
| of Section 250;
| 28 |
| (R) For taxable years 2001 and thereafter, for the | 29 |
| taxable year in
which the bonus depreciation deduction | 30 |
| (30% of the adjusted basis of the
qualified property) | 31 |
| is taken on the taxpayer's federal income tax return | 32 |
| under
subsection (k) of Section 168 of the Internal | 33 |
| Revenue Code and for each
applicable taxable year | 34 |
| thereafter, an amount equal to "x", where:
| 35 |
| (1) "y" equals the amount of the depreciation | 36 |
| deduction taken for the
taxable year
on the |
|
|
|
HB4914 Enrolled |
- 29 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| taxpayer's federal income tax return on property | 2 |
| for which the bonus
depreciation deduction (30% of | 3 |
| the adjusted basis of the qualified property)
was | 4 |
| taken in any year under subsection (k) of Section | 5 |
| 168 of the Internal
Revenue Code, but not including | 6 |
| the bonus depreciation deduction; and
| 7 |
| (2) "x" equals "y" multiplied by 30 and then | 8 |
| divided by 70 (or "y"
multiplied by 0.429).
| 9 |
| The aggregate amount deducted under this | 10 |
| subparagraph in all taxable
years for any one piece of | 11 |
| property may not exceed the amount of the bonus
| 12 |
| depreciation deduction (30% of the adjusted basis of | 13 |
| the qualified property)
taken on that property on the | 14 |
| taxpayer's federal income tax return under
subsection | 15 |
| (k) of Section 168 of the Internal Revenue Code; and
| 16 |
| (S) If the taxpayer reports a capital gain or loss | 17 |
| on the taxpayer's
federal income tax return for the | 18 |
| taxable year based on a sale or transfer of
property | 19 |
| for which the taxpayer was required in any taxable year | 20 |
| to make an
addition modification under subparagraph | 21 |
| (G-10), then an amount equal to that
addition | 22 |
| modification.
| 23 |
| The taxpayer is allowed to take the deduction under | 24 |
| this subparagraph
only once with respect to any one | 25 |
| piece of property.
| 26 |
| (3) Limitation. The amount of any modification | 27 |
| otherwise required
under this subsection shall, under | 28 |
| regulations prescribed by the
Department, be adjusted by | 29 |
| any amounts included therein which were
properly paid, | 30 |
| credited, or required to be distributed, or permanently set
| 31 |
| aside for charitable purposes pursuant to Internal Revenue | 32 |
| Code Section
642(c) during the taxable year.
| 33 |
| (d) Partnerships.
| 34 |
| (1) In general. In the case of a partnership, base | 35 |
| income means an
amount equal to the taxpayer's taxable |
|
|
|
HB4914 Enrolled |
- 30 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| income for the taxable year as
modified by paragraph (2).
| 2 |
| (2) Modifications. The taxable income referred to in | 3 |
| paragraph (1)
shall be modified by adding thereto the sum | 4 |
| of the following amounts:
| 5 |
| (A) An amount equal to all amounts paid or accrued | 6 |
| to the taxpayer as
interest or dividends during the | 7 |
| taxable year to the extent excluded from
gross income | 8 |
| in the computation of taxable income;
| 9 |
| (B) An amount equal to the amount of tax imposed by | 10 |
| this Act to the
extent deducted from gross income for | 11 |
| the taxable year;
| 12 |
| (C) The amount of deductions allowed to the | 13 |
| partnership pursuant to
Section 707 (c) of the Internal | 14 |
| Revenue Code in calculating its taxable income;
| 15 |
| (D) An amount equal to the amount of the capital | 16 |
| gain deduction
allowable under the Internal Revenue | 17 |
| Code, to the extent deducted from
gross income in the | 18 |
| computation of taxable income;
| 19 |
| (D-5) For taxable years 2001 and thereafter, an | 20 |
| amount equal to the
bonus depreciation deduction (30% | 21 |
| of the adjusted basis of the qualified
property) taken | 22 |
| on the taxpayer's federal income tax return for the | 23 |
| taxable
year under subsection (k) of Section 168 of the | 24 |
| Internal Revenue Code; and
| 25 |
| (D-6) If the taxpayer reports a capital gain or | 26 |
| loss on the taxpayer's
federal income tax return for | 27 |
| the taxable year based on a sale or transfer of
| 28 |
| property for which the taxpayer was required in any | 29 |
| taxable year to make an
addition modification under | 30 |
| subparagraph (D-5), then an amount equal to the
| 31 |
| aggregate amount of the deductions taken in all taxable | 32 |
| years
under subparagraph (O) with respect to that | 33 |
| property . ;
| 34 |
| The taxpayer is required to make the addition | 35 |
| modification under this
subparagraph
only once with | 36 |
| respect to any one piece of property;
|
|
|
|
HB4914 Enrolled |
- 31 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| and by deducting from the total so obtained the following | 2 |
| amounts:
| 3 |
| (E) The valuation limitation amount;
| 4 |
| (F) An amount equal to the amount of any tax | 5 |
| imposed by this Act which
was refunded to the taxpayer | 6 |
| and included in such total for the taxable year;
| 7 |
| (G) An amount equal to all amounts included in | 8 |
| taxable income as
modified by subparagraphs (A), (B), | 9 |
| (C) and (D) which are exempt from
taxation by this | 10 |
| State either by reason of its statutes or Constitution | 11 |
| or
by reason of
the Constitution, treaties or statutes | 12 |
| of the United States;
provided that, in the case of any | 13 |
| statute of this State that exempts income
derived from | 14 |
| bonds or other obligations from the tax imposed under | 15 |
| this Act,
the amount exempted shall be the interest net | 16 |
| of bond premium amortization;
| 17 |
| (H) Any income of the partnership which | 18 |
| constitutes personal service
income as defined in | 19 |
| Section 1348 (b) (1) of the Internal Revenue Code (as
| 20 |
| in effect December 31, 1981) or a reasonable allowance | 21 |
| for compensation
paid or accrued for services rendered | 22 |
| by partners to the partnership,
whichever is greater;
| 23 |
| (I) An amount equal to all amounts of income | 24 |
| distributable to an entity
subject to the Personal | 25 |
| Property Tax Replacement Income Tax imposed by
| 26 |
| subsections (c) and (d) of Section 201 of this Act | 27 |
| including amounts
distributable to organizations | 28 |
| exempt from federal income tax by reason of
Section | 29 |
| 501(a) of the Internal Revenue Code;
| 30 |
| (J) With the exception of any amounts subtracted | 31 |
| under subparagraph
(G),
an amount equal to the sum of | 32 |
| all amounts disallowed as deductions
by (i) Sections | 33 |
| 171(a) (2), and 265(2) of the Internal Revenue Code of | 34 |
| 1954,
as now or hereafter amended, and all amounts of | 35 |
| expenses allocable to
interest and disallowed as | 36 |
| deductions by Section 265(1) of the Internal
Revenue |
|
|
|
HB4914 Enrolled |
- 32 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| Code, as now or hereafter amended;
and (ii) for taxable | 2 |
| years
ending on or after August 13, 1999, Sections
| 3 |
| 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | 4 |
| Internal Revenue Code; the provisions of this
| 5 |
| subparagraph are exempt from the provisions of Section | 6 |
| 250;
| 7 |
| (K) An amount equal to those dividends included in | 8 |
| such total which were
paid by a corporation which | 9 |
| conducts business operations in an Enterprise
Zone or | 10 |
| zones created under the Illinois Enterprise Zone Act, | 11 |
| enacted by
the 82nd General Assembly, and
conducts | 12 |
| substantially all of its operations
in an Enterprise | 13 |
| Zone or Zones;
| 14 |
| (L) An amount equal to any contribution made to a | 15 |
| job training project
established pursuant to the Real | 16 |
| Property Tax Increment Allocation
Redevelopment Act;
| 17 |
| (M) An amount equal to those dividends included in | 18 |
| such total
that were paid by a corporation that | 19 |
| conducts business operations in a
federally designated | 20 |
| Foreign Trade Zone or Sub-Zone and that is designated a
| 21 |
| High Impact Business located in Illinois; provided | 22 |
| that dividends eligible
for the deduction provided in | 23 |
| subparagraph (K) of paragraph (2) of this
subsection | 24 |
| shall not be eligible for the deduction provided under | 25 |
| this
subparagraph (M);
| 26 |
| (N) An amount equal to the amount of the deduction | 27 |
| used to compute the
federal income tax credit for | 28 |
| restoration of substantial amounts held under
claim of | 29 |
| right for the taxable year pursuant to Section 1341 of | 30 |
| the
Internal Revenue Code of 1986;
| 31 |
| (O) For taxable years 2001 and thereafter, for the | 32 |
| taxable year in
which the bonus depreciation deduction | 33 |
| (30% of the adjusted basis of the
qualified property) | 34 |
| is taken on the taxpayer's federal income tax return | 35 |
| under
subsection (k) of Section 168 of the Internal | 36 |
| Revenue Code and for each
applicable taxable year |
|
|
|
HB4914 Enrolled |
- 33 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| thereafter, an amount equal to "x", where:
| 2 |
| (1) "y" equals the amount of the depreciation | 3 |
| deduction taken for the
taxable year
on the | 4 |
| taxpayer's federal income tax return on property | 5 |
| for which the bonus
depreciation deduction (30% of | 6 |
| the adjusted basis of the qualified property)
was | 7 |
| taken in any year under subsection (k) of Section | 8 |
| 168 of the Internal
Revenue Code, but not including | 9 |
| the bonus depreciation deduction; and
| 10 |
| (2) "x" equals "y" multiplied by 30 and then | 11 |
| divided by 70 (or "y"
multiplied by 0.429).
| 12 |
| The aggregate amount deducted under this | 13 |
| subparagraph in all taxable
years for any one piece of | 14 |
| property may not exceed the amount of the bonus
| 15 |
| depreciation deduction (30% of the adjusted basis of | 16 |
| the qualified property)
taken on that property on the | 17 |
| taxpayer's federal income tax return under
subsection | 18 |
| (k) of Section 168 of the Internal Revenue Code; and
| 19 |
| (P) If the taxpayer reports a capital gain or loss | 20 |
| on the taxpayer's
federal income tax return for the | 21 |
| taxable year based on a sale or transfer of
property | 22 |
| for which the taxpayer was required in any taxable year | 23 |
| to make an
addition modification under subparagraph | 24 |
| (D-5), then an amount equal to that
addition | 25 |
| modification.
| 26 |
| The taxpayer is allowed to take the deduction under | 27 |
| this subparagraph
only once with respect to any one | 28 |
| piece of property.
| 29 |
| (e) Gross income; adjusted gross income; taxable income.
| 30 |
| (1) In general. Subject to the provisions of paragraph | 31 |
| (2) and
subsection (b) (3), for purposes of this Section | 32 |
| and Section 803(e), a
taxpayer's gross income, adjusted | 33 |
| gross income, or taxable income for
the taxable year shall | 34 |
| mean the amount of gross income, adjusted gross
income or | 35 |
| taxable income properly reportable for federal income tax
|
|
|
|
HB4914 Enrolled |
- 34 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| purposes for the taxable year under the provisions of the | 2 |
| Internal
Revenue Code. Taxable income may be less than | 3 |
| zero. However, for taxable
years ending on or after | 4 |
| December 31, 1986, net operating loss
carryforwards from | 5 |
| taxable years ending prior to December 31, 1986, may not
| 6 |
| exceed the sum of federal taxable income for the taxable | 7 |
| year before net
operating loss deduction, plus the excess | 8 |
| of addition modifications over
subtraction modifications | 9 |
| for the taxable year. For taxable years ending
prior to | 10 |
| December 31, 1986, taxable income may never be an amount in | 11 |
| excess
of the net operating loss for the taxable year as | 12 |
| defined in subsections
(c) and (d) of Section 172 of the | 13 |
| Internal Revenue Code, provided that when
taxable income of | 14 |
| a corporation (other than a Subchapter S corporation),
| 15 |
| trust, or estate is less than zero and addition | 16 |
| modifications, other than
those provided by subparagraph | 17 |
| (E) of paragraph (2) of subsection (b) for
corporations or | 18 |
| subparagraph (E) of paragraph (2) of subsection (c) for
| 19 |
| trusts and estates, exceed subtraction modifications, an | 20 |
| addition
modification must be made under those | 21 |
| subparagraphs for any other taxable
year to which the | 22 |
| taxable income less than zero (net operating loss) is
| 23 |
| applied under Section 172 of the Internal Revenue Code or | 24 |
| under
subparagraph (E) of paragraph (2) of this subsection | 25 |
| (e) applied in
conjunction with Section 172 of the Internal | 26 |
| Revenue Code.
| 27 |
| (2) Special rule. For purposes of paragraph (1) of this | 28 |
| subsection,
the taxable income properly reportable for | 29 |
| federal income tax purposes
shall mean:
| 30 |
| (A) Certain life insurance companies. In the case | 31 |
| of a life
insurance company subject to the tax imposed | 32 |
| by Section 801 of the
Internal Revenue Code, life | 33 |
| insurance company taxable income, plus the
amount of | 34 |
| distribution from pre-1984 policyholder surplus | 35 |
| accounts as
calculated under Section 815a of the | 36 |
| Internal Revenue Code;
|
|
|
|
HB4914 Enrolled |
- 35 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| (B) Certain other insurance companies. In the case | 2 |
| of mutual
insurance companies subject to the tax | 3 |
| imposed by Section 831 of the
Internal Revenue Code, | 4 |
| insurance company taxable income;
| 5 |
| (C) Regulated investment companies. In the case of | 6 |
| a regulated
investment company subject to the tax | 7 |
| imposed by Section 852 of the
Internal Revenue Code, | 8 |
| investment company taxable income;
| 9 |
| (D) Real estate investment trusts. In the case of a | 10 |
| real estate
investment trust subject to the tax imposed | 11 |
| by Section 857 of the
Internal Revenue Code, real | 12 |
| estate investment trust taxable income;
| 13 |
| (E) Consolidated corporations. In the case of a | 14 |
| corporation which
is a member of an affiliated group of | 15 |
| corporations filing a consolidated
income tax return | 16 |
| for the taxable year for federal income tax purposes,
| 17 |
| taxable income determined as if such corporation had | 18 |
| filed a separate
return for federal income tax purposes | 19 |
| for the taxable year and each
preceding taxable year | 20 |
| for which it was a member of an affiliated group.
For | 21 |
| purposes of this subparagraph, the taxpayer's separate | 22 |
| taxable
income shall be determined as if the election | 23 |
| provided by Section
243(b) (2) of the Internal Revenue | 24 |
| Code had been in effect for all such years;
| 25 |
| (F) Cooperatives. In the case of a cooperative | 26 |
| corporation or
association, the taxable income of such | 27 |
| organization determined in
accordance with the | 28 |
| provisions of Section 1381 through 1388 of the
Internal | 29 |
| Revenue Code;
| 30 |
| (G) Subchapter S corporations. In the case of: (i) | 31 |
| a Subchapter S
corporation for which there is in effect | 32 |
| an election for the taxable year
under Section 1362 of | 33 |
| the Internal Revenue Code, the taxable income of such
| 34 |
| corporation determined in accordance with Section | 35 |
| 1363(b) of the Internal
Revenue Code, except that | 36 |
| taxable income shall take into
account those items |
|
|
|
HB4914 Enrolled |
- 36 - |
LRB093 15099 SJM 40689 b |
|
| 1 |
| which are required by Section 1363(b)(1) of the
| 2 |
| Internal Revenue Code to be separately stated; and (ii) | 3 |
| a Subchapter
S corporation for which there is in effect | 4 |
| a federal election to opt out of
the provisions of the | 5 |
| Subchapter S Revision Act of 1982 and have applied
| 6 |
| instead the prior federal Subchapter S rules as in | 7 |
| effect on July 1, 1982,
the taxable income of such | 8 |
| corporation determined in accordance with the
federal | 9 |
| Subchapter S rules as in effect on July 1, 1982; and
| 10 |
| (H) Partnerships. In the case of a partnership, | 11 |
| taxable income
determined in accordance with Section | 12 |
| 703 of the Internal Revenue Code,
except that taxable | 13 |
| income shall take into account those items which are
| 14 |
| required by Section 703(a)(1) to be separately stated | 15 |
| but which would be
taken into account by an individual | 16 |
| in calculating his taxable income.
| 17 |
| (f) Valuation limitation amount.
| 18 |
| (1) In general. The valuation limitation amount | 19 |
| referred to in
subsections (a) (2) (G), (c) (2) (I) and | 20 |
| (d)(2) (E) is an amount equal to:
| 21 |
| (A) The sum of the pre-August 1, 1969 appreciation | 22 |
| amounts (to the
extent consisting of gain reportable | 23 |
| under the provisions of Section
1245 or 1250 of the | 24 |
| Internal Revenue Code) for all property in respect
of | 25 |
| which such gain was reported for the taxable year; plus
| 26 |
| (B) The lesser of (i) the sum of the pre-August 1, | 27 |
| 1969 appreciation
amounts (to the extent consisting of | 28 |
| capital gain) for all property in
respect of which such | 29 |
| gain was reported for federal income tax purposes
for | 30 |
| the taxable year, or (ii) the net capital gain for the | 31 |
| taxable year,
reduced in either case by any amount of | 32 |
| such gain included in the amount
determined under | 33 |
| subsection (a) (2) (F) or (c) (2) (H).
| 34 |
| (2) Pre-August 1, 1969 appreciation amount.
| 35 |
| (A) If the fair market value of property referred |
|
|
|
HB4914 Enrolled |
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LRB093 15099 SJM 40689 b |
|
| 1 |
| to in paragraph
(1) was readily ascertainable on August | 2 |
| 1, 1969, the pre-August 1, 1969
appreciation amount for | 3 |
| such property is the lesser of (i) the excess of
such | 4 |
| fair market value over the taxpayer's basis (for | 5 |
| determining gain)
for such property on that date | 6 |
| (determined under the Internal Revenue
Code as in | 7 |
| effect on that date), or (ii) the total gain realized | 8 |
| and
reportable for federal income tax purposes in | 9 |
| respect of the sale,
exchange or other disposition of | 10 |
| such property.
| 11 |
| (B) If the fair market value of property referred | 12 |
| to in paragraph
(1) was not readily ascertainable on | 13 |
| August 1, 1969, the pre-August 1,
1969 appreciation | 14 |
| amount for such property is that amount which bears
the | 15 |
| same ratio to the total gain reported in respect of the | 16 |
| property for
federal income tax purposes for the | 17 |
| taxable year, as the number of full
calendar months in | 18 |
| that part of the taxpayer's holding period for the
| 19 |
| property ending July 31, 1969 bears to the number of | 20 |
| full calendar
months in the taxpayer's entire holding | 21 |
| period for the
property.
| 22 |
| (C) The Department shall prescribe such | 23 |
| regulations as may be
necessary to carry out the | 24 |
| purposes of this paragraph.
| 25 |
| (g) Double deductions. Unless specifically provided | 26 |
| otherwise, nothing
in this Section shall permit the same item | 27 |
| to be deducted more than once.
| 28 |
| (h) Legislative intention. Except as expressly provided by | 29 |
| this
Section there shall be no modifications or limitations on | 30 |
| the amounts
of income, gain, loss or deduction taken into | 31 |
| account in determining
gross income, adjusted gross income or | 32 |
| taxable income for federal income
tax purposes for the taxable | 33 |
| year, or in the amount of such items
entering into the | 34 |
| computation of base income and net income under this
Act for |
|
|
|
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LRB093 15099 SJM 40689 b |
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| 1 |
| such taxable year, whether in respect of property values as of
| 2 |
| August 1, 1969 or otherwise.
| 3 |
| (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; | 4 |
| 91-357, eff.
7-29-99; 91-541, eff. 8-13-99; 91-676, eff. | 5 |
| 12-23-99; 91-845, eff. 6-22-00;
91-913, eff. 1-1-01; 92-16, | 6 |
| eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff.
8-17-01; | 7 |
| 92-603, eff. 6-28-02; 92-626, eff. 7-11-02; 92-651, eff. | 8 |
| 7-11-02;
92-846, eff. 8-23-02; revised 10-15-03.)
| 9 |
| (110 ILCS 920/9 rep.) (from Ch. 144, par. 2409)
| 10 |
| Section 15. The Baccalaureate Savings Act is amended by | 11 |
| repealing Section 9.
| 12 |
| (110 ILCS 979/70 rep.)
| 13 |
| Section 20. The Illinois Prepaid Tuition Act is amended by | 14 |
| repealing Section 70. | 15 |
| Section 99. Effective date. This Act takes effect upon | 16 |
| becoming law, except
that Sections 5, 15, and 20 take effect on | 17 |
| January 1, 2005.
|
|