Full Text of SB2211 93rd General Assembly
SB2211ham001 93RD GENERAL ASSEMBLY
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Revenue Committee
Filed: 5/19/2004
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09300SB2211ham001 |
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LRB093 15834 RCE 51234 a |
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| AMENDMENT TO SENATE BILL 2211
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| AMENDMENT NO. ______. Amend Senate Bill 2211 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Income Tax Act is amended by | 5 |
| 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 | 10 |
| income means an
amount equal to the taxpayer's adjusted | 11 |
| gross income for the taxable
year as modified by paragraph | 12 |
| (2).
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| (2) Modifications. The adjusted gross income referred | 14 |
| to in
paragraph (1) shall be modified by adding thereto the | 15 |
| sum of the
following amounts:
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| (A) An amount equal to all amounts paid or accrued | 17 |
| to the taxpayer
as interest or dividends during the | 18 |
| taxable year to the extent excluded
from gross income | 19 |
| in the computation of adjusted gross income, except | 20 |
| stock
dividends of qualified public utilities | 21 |
| described in Section 305(e) of the
Internal Revenue | 22 |
| Code;
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| (B) An amount equal to the amount of tax imposed by | 24 |
| this Act to the
extent deducted from gross income in |
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| the computation of adjusted gross
income for the | 2 |
| taxable year;
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| (C) An amount equal to the amount received during | 4 |
| the taxable year
as a recovery or refund of real | 5 |
| property taxes paid with respect to the
taxpayer's | 6 |
| principal residence under the Revenue Act of
1939 and | 7 |
| for which a deduction was previously taken under | 8 |
| subparagraph (L) of
this paragraph (2) prior to July 1, | 9 |
| 1991, the retrospective application date of
Article 4 | 10 |
| of Public Act 87-17. In the case of multi-unit or | 11 |
| multi-use
structures and farm dwellings, the taxes on | 12 |
| the taxpayer's principal residence
shall be that | 13 |
| portion of the total taxes for the entire property | 14 |
| which is
attributable to such principal residence;
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| (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 adjusted gross income;
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| (D-5) An amount, to the extent not included in | 20 |
| adjusted gross income,
equal to the amount of money | 21 |
| withdrawn by the taxpayer in the taxable year from
a | 22 |
| medical care savings account and the interest earned on | 23 |
| the account in the
taxable year of a withdrawal | 24 |
| pursuant to subsection (b) of Section 20 of the
Medical | 25 |
| Care Savings Account Act or subsection (b) of Section | 26 |
| 20 of the
Medical Care Savings Account Act of 2000;
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| (D-10) For taxable years ending after December 31, | 28 |
| 1997, an
amount equal to any eligible remediation costs | 29 |
| that the individual
deducted in computing adjusted | 30 |
| gross income and for which the
individual claims a | 31 |
| credit under subsection (l) of Section 201;
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| (D-15) For taxable years ending on or after | 33 |
| December 31, 2000 and before December 31, 2004
2001 and | 34 |
| thereafter , an amount equal to the
bonus depreciation |
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| deduction (30% of the adjusted basis of the qualified
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| property)
taken on the taxpayer's federal income tax | 3 |
| return for the taxable
year under subsection (k) of | 4 |
| Section 168 of the Internal Revenue Code; and
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| (D-16) If the taxpayer reports a capital gain or | 6 |
| loss on the
taxpayer's federal income tax return for | 7 |
| the taxable year based on a sale or
transfer of | 8 |
| property for which the taxpayer was required in any | 9 |
| taxable year to
make an addition modification under | 10 |
| subparagraph (D-15), then an amount equal
to the | 11 |
| aggregate amount of the deductions taken in all taxable
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| years under subparagraph (Z) with respect to that | 13 |
| property . ;
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| The taxpayer is required to make the addition | 15 |
| modification under this
subparagraph
only once with | 16 |
| respect to any one piece of property ; . and
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| (D-20)
(D-15) For taxable years beginning on or | 18 |
| after January 1,
2002, in
the
case of a distribution | 19 |
| from a qualified tuition program under Section 529 of
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| the Internal Revenue Code, other than (i) a | 21 |
| distribution from a College Savings
Pool created under | 22 |
| Section 16.5 of the State Treasurer Act or (ii) a
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| distribution from the Illinois Prepaid Tuition Trust | 24 |
| Fund, an amount equal to
the amount excluded from gross | 25 |
| income under Section 529(c)(3)(B);
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| and by deducting from the total so obtained the
sum of the | 27 |
| following amounts:
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| (E) For taxable years ending before December 31, | 29 |
| 2001,
any amount included in such total in respect of | 30 |
| any compensation
(including but not limited to any | 31 |
| compensation paid or accrued to a
serviceman while a | 32 |
| prisoner of war or missing in action) paid to a | 33 |
| resident
by reason of being on active duty in the Armed | 34 |
| Forces of the United States
and in respect of any |
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| compensation paid or accrued to a resident who as a
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| governmental employee was a prisoner of war or missing | 3 |
| in action, and in
respect of any compensation paid to a | 4 |
| resident in 1971 or thereafter for
annual training | 5 |
| performed pursuant to Sections 502 and 503, Title 32,
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| United States Code as a member of the Illinois National | 7 |
| Guard.
For taxable years ending on or after December | 8 |
| 31, 2001, any amount included in
such total in respect | 9 |
| of any compensation (including but not limited to any
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| compensation paid or accrued to a serviceman while a | 11 |
| prisoner of war or missing
in action) paid to a | 12 |
| resident by reason of being a member of any component | 13 |
| of
the Armed Forces of the United States and in respect | 14 |
| of any compensation paid
or accrued to a resident who | 15 |
| as a governmental employee was a prisoner of war
or | 16 |
| missing in action, and in respect of any compensation | 17 |
| paid to a resident in
2001 or thereafter by reason of | 18 |
| being a member of the Illinois National Guard.
The | 19 |
| provisions of this amendatory Act of the 92nd General | 20 |
| Assembly are exempt
from the provisions of Section 250;
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| (F) An amount equal to all amounts included in such | 22 |
| total pursuant
to the provisions of Sections 402(a), | 23 |
| 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | 24 |
| Internal Revenue Code, or included in such total as
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| distributions under the provisions of any retirement | 26 |
| or disability plan for
employees of any governmental | 27 |
| agency or unit, or retirement payments to
retired | 28 |
| partners, which payments are excluded in computing net | 29 |
| earnings
from self employment by Section 1402 of the | 30 |
| Internal Revenue Code and
regulations adopted pursuant | 31 |
| thereto;
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| (G) The valuation limitation amount;
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| (H) An amount equal to the amount of any tax | 34 |
| imposed by this Act
which was refunded to the taxpayer |
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| and included in such total for the
taxable year;
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| (I) An amount equal to all amounts included in such | 3 |
| total pursuant
to the provisions of Section 111 of the | 4 |
| Internal Revenue Code as a
recovery of items previously | 5 |
| deducted from adjusted gross income in the
computation | 6 |
| of taxable income;
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| (J) 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 |
| and conducts
substantially all of its operations in an | 12 |
| Enterprise Zone or zones;
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| (K) An amount equal to those dividends included in | 14 |
| such total that
were paid by a corporation that | 15 |
| conducts business operations in a federally
designated | 16 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 17 |
| High Impact
Business located in Illinois; provided | 18 |
| that dividends eligible for the
deduction provided in | 19 |
| subparagraph (J) of paragraph (2) of this subsection
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| shall not be eligible for the deduction provided under | 21 |
| this subparagraph
(K);
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| (L) For taxable years ending after December 31, | 23 |
| 1983, an amount equal to
all social security benefits | 24 |
| and railroad retirement benefits included in
such | 25 |
| total pursuant to Sections 72(r) and 86 of the Internal | 26 |
| Revenue Code;
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| (M) With the exception of any amounts subtracted | 28 |
| under subparagraph
(N), an amount equal to the sum of | 29 |
| all amounts disallowed as
deductions by (i) Sections | 30 |
| 171(a) (2), and 265(2) of the Internal Revenue Code
of | 31 |
| 1954, as now or hereafter amended, and all amounts of | 32 |
| expenses allocable
to interest and disallowed as | 33 |
| deductions by Section 265(1) of the Internal
Revenue | 34 |
| Code of 1954, as now or hereafter amended;
and (ii) for |
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| taxable years
ending on or after August 13, 1999, | 2 |
| Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 3 |
| the Internal Revenue Code; the provisions of this
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| subparagraph are exempt from the provisions of Section | 5 |
| 250;
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| (N) An amount equal to all amounts included in such | 7 |
| total which are
exempt from taxation by this State | 8 |
| either by reason of its statutes or
Constitution
or by | 9 |
| reason of the Constitution, treaties or statutes of the | 10 |
| United States;
provided that, in the case of any | 11 |
| statute of this State that exempts income
derived from | 12 |
| bonds or other obligations from the tax imposed under | 13 |
| this Act,
the amount exempted shall be the interest net | 14 |
| of bond premium amortization;
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| (O) An amount equal to any contribution made to a | 16 |
| job training
project established pursuant to the Tax | 17 |
| Increment Allocation Redevelopment Act;
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| (P) An amount equal to the amount of the deduction | 19 |
| used to compute the
federal income tax credit for | 20 |
| restoration of substantial amounts held under
claim of | 21 |
| right for the taxable year pursuant to Section 1341 of | 22 |
| the
Internal Revenue Code of 1986;
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| (Q) An amount equal to any amounts included in such | 24 |
| total, received by
the taxpayer as an acceleration in | 25 |
| the payment of life, endowment or annuity
benefits in | 26 |
| advance of the time they would otherwise be payable as | 27 |
| an indemnity
for a terminal illness;
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| (R) An amount equal to the amount of any federal or | 29 |
| State bonus paid
to veterans of the Persian Gulf War;
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| (S) An amount, to the extent included in adjusted | 31 |
| gross income, equal
to the amount of a contribution | 32 |
| made in the taxable year on behalf of the
taxpayer to a | 33 |
| medical care savings account established under the | 34 |
| 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;
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| (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;
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| (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
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| 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
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| 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
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| employer of the taxpayer or the taxpayer's
spouse. The | 2 |
| amount of the health insurance and long-term care | 3 |
| insurance
subtracted under this item (V) shall be | 4 |
| determined by multiplying total
health insurance and | 5 |
| long-term care insurance premiums paid by the taxpayer
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| times a number that represents the fractional | 7 |
| percentage of eligible medical
expenses under Section | 8 |
| 213 of the Internal Revenue Code of 1986 not actually
| 9 |
| deducted on the taxpayer's federal income tax return;
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| (W) For taxable years beginning on or after January | 11 |
| 1, 1998,
all amounts included in the taxpayer's federal | 12 |
| gross income
in the taxable year from amounts converted | 13 |
| from a regular IRA to a Roth IRA.
This paragraph is | 14 |
| exempt from the provisions of Section
250;
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| (X) For taxable year 1999 and thereafter, an amount | 16 |
| equal to the
amount of any (i) distributions, to the | 17 |
| extent includible in gross income for
federal income | 18 |
| tax purposes, made to the taxpayer because of his or | 19 |
| her status
as a victim of persecution for racial or | 20 |
| religious reasons by Nazi Germany or
any other Axis | 21 |
| regime or as an heir of the victim and (ii) items
of | 22 |
| income, to the extent
includible in gross income for | 23 |
| federal income tax purposes, attributable to,
derived | 24 |
| from or in any way related to assets stolen from, | 25 |
| hidden from, or
otherwise lost to a victim of
| 26 |
| persecution for racial or religious reasons by Nazi | 27 |
| Germany or any other Axis
regime immediately prior to, | 28 |
| during, and immediately after World War II,
including, | 29 |
| but
not limited to, interest on the proceeds receivable | 30 |
| as insurance
under policies issued to a victim of | 31 |
| persecution for racial or religious
reasons
by Nazi | 32 |
| Germany or any other Axis regime by European insurance | 33 |
| companies
immediately prior to and during World War II;
| 34 |
| provided, however, this subtraction from federal |
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| adjusted gross income does not
apply to assets acquired | 2 |
| with such assets or with the proceeds from the sale of
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| such assets; provided, further, this paragraph shall | 4 |
| only apply to a taxpayer
who was the first recipient of | 5 |
| such assets after their recovery and who is a
victim of | 6 |
| persecution for racial or religious reasons
by Nazi | 7 |
| Germany or any other Axis regime or as an heir of the | 8 |
| victim. The
amount of and the eligibility for any | 9 |
| public assistance, benefit, or
similar entitlement is | 10 |
| not affected by the inclusion of items (i) and (ii) of
| 11 |
| this paragraph in gross income for federal income tax | 12 |
| purposes.
This paragraph is exempt from the provisions | 13 |
| of Section 250;
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| (Y) For taxable years beginning on or after January | 15 |
| 1, 2002,
moneys contributed in the taxable year to a | 16 |
| College Savings Pool account under
Section 16.5 of the | 17 |
| State Treasurer Act, except that amounts excluded from
| 18 |
| gross income under Section 529(c)(3) (C) (i) of the | 19 |
| Internal Revenue Code
shall not be considered moneys | 20 |
| contributed under this subparagraph (Y). This
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| subparagraph (Y) is exempt from the provisions of | 22 |
| Section 250;
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| (Z) For each taxable year ending before December | 24 |
| 31, 2004
years 2001 and thereafter , for the taxable | 25 |
| year in
which the bonus depreciation deduction (30% of | 26 |
| the adjusted basis of the
qualified property) is taken | 27 |
| on the taxpayer's federal income tax return under
| 28 |
| subsection (k) of Section 168 of the Internal Revenue | 29 |
| Code and for each
applicable taxable year thereafter, | 30 |
| an amount equal to "x", where:
| 31 |
| (1) "y" equals the amount of the depreciation | 32 |
| deduction taken for the
taxable year
on the | 33 |
| taxpayer's federal income tax return on property | 34 |
| for which the bonus
depreciation deduction (30% of |
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| the adjusted basis of the qualified property)
was | 2 |
| taken in any year under subsection (k) of Section | 3 |
| 168 of the Internal
Revenue Code (for this purpose, | 4 |
| the depreciation deduction taken for the taxable | 5 |
| year on the taxpayer's federal income tax return is | 6 |
| deemed to take into account any depreciation | 7 |
| adjustment required under Section 203(e)(2)(I)) , | 8 |
| but not including the bonus depreciation | 9 |
| deduction; and
| 10 |
| (2) for property on which a bonus depreciation | 11 |
| deduction of 30% of the adjusted basis was taken,
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| "x" equals "y" multiplied by 30 and then divided by | 13 |
| 70 (or "y"
multiplied by 0.429) , and for property | 14 |
| on which a bonus depreciation deduction of 50% of | 15 |
| the adjusted basis was taken, "x" equals "y" | 16 |
| multiplied by 1.0 .
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| The aggregate amount deducted under this | 18 |
| subparagraph in all taxable
years for any one piece of | 19 |
| property may not exceed the amount of the bonus
| 20 |
| depreciation deduction (30% of the adjusted basis of | 21 |
| the qualified property)
taken on that property on the | 22 |
| taxpayer's federal income tax return under
subsection | 23 |
| (k) of Section 168 of the Internal Revenue Code; and
| 24 |
| (AA) If the taxpayer reports a capital gain or loss | 25 |
| on the taxpayer's
federal income tax return for the | 26 |
| taxable year based on a sale or transfer of
property | 27 |
| for which the taxpayer was required in any taxable year | 28 |
| to make an
addition modification under subparagraph | 29 |
| (D-15), then an amount equal to that
addition | 30 |
| modification.
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| The taxpayer is allowed to take the deduction under | 32 |
| this subparagraph
only once with respect to any one | 33 |
| piece of property; and
| 34 |
| (BB)
(Z) Any amount included in adjusted gross |
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| income, other
than
salary,
received by a driver in a | 2 |
| ridesharing arrangement using a motor vehicle.
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| (b) Corporations.
| 4 |
| (1) In general. In the case of a corporation, base | 5 |
| income means an
amount equal to the taxpayer's taxable | 6 |
| income for the taxable year as
modified by paragraph (2).
| 7 |
| (2) Modifications. The taxable income referred to in | 8 |
| paragraph (1)
shall be modified by adding thereto the sum | 9 |
| of the following amounts:
| 10 |
| (A) An amount equal to all amounts paid or accrued | 11 |
| to the taxpayer
as interest and all distributions | 12 |
| received from regulated investment
companies during | 13 |
| the taxable year to the extent excluded from gross
| 14 |
| income in the computation of taxable income;
| 15 |
| (B) An amount equal to the amount of tax imposed by | 16 |
| this Act to the
extent deducted from gross income in | 17 |
| the computation of taxable income
for the taxable year;
| 18 |
| (C) In the case of a regulated investment company, | 19 |
| an amount equal to
the excess of (i) the net long-term | 20 |
| capital gain for the taxable year, over
(ii) the amount | 21 |
| of the capital gain dividends designated as such in | 22 |
| accordance
with Section 852(b)(3)(C) of the Internal | 23 |
| Revenue Code and any amount
designated under Section | 24 |
| 852(b)(3)(D) of the Internal Revenue Code,
| 25 |
| attributable to the taxable year (this amendatory Act | 26 |
| of 1995
(Public Act 89-89) is declarative of existing | 27 |
| law and is not a new
enactment);
| 28 |
| (D) The amount of any net operating loss deduction | 29 |
| taken in arriving
at taxable income, other than a net | 30 |
| operating loss carried forward from a
taxable year | 31 |
| ending prior to December 31, 1986;
| 32 |
| (E) For taxable years in which a net operating loss | 33 |
| carryback or
carryforward from a taxable year ending |
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| prior to December 31, 1986 is an
element of taxable | 2 |
| income under paragraph (1) of subsection (e) or
| 3 |
| subparagraph (E) of paragraph (2) of subsection (e), | 4 |
| the amount by which
addition modifications other than | 5 |
| those provided by this subparagraph (E)
exceeded | 6 |
| subtraction modifications in such earlier taxable | 7 |
| year, with the
following limitations applied in the | 8 |
| order that they are listed:
| 9 |
| (i) the addition modification relating to the | 10 |
| net operating loss
carried back or forward to the | 11 |
| taxable year from any taxable year ending
prior to | 12 |
| December 31, 1986 shall be reduced by the amount of | 13 |
| addition
modification under this subparagraph (E) | 14 |
| which related to that net operating
loss and which | 15 |
| was taken into account in calculating the base | 16 |
| income of an
earlier taxable year, and
| 17 |
| (ii) the addition modification relating to the | 18 |
| net operating loss
carried back or forward to the | 19 |
| taxable year from any taxable year ending
prior to | 20 |
| December 31, 1986 shall not exceed the amount of | 21 |
| such carryback or
carryforward;
| 22 |
| For taxable years in which there is a net operating | 23 |
| loss carryback or
carryforward from more than one other | 24 |
| taxable year ending prior to December
31, 1986, the | 25 |
| addition modification provided in this subparagraph | 26 |
| (E) shall
be the sum of the amounts computed | 27 |
| independently under the preceding
provisions of this | 28 |
| subparagraph (E) for each such taxable year;
| 29 |
| (E-5) For taxable years ending after December 31, | 30 |
| 1997, an
amount equal to any eligible remediation costs | 31 |
| that the corporation
deducted in computing adjusted | 32 |
| gross income and for which the
corporation claims a | 33 |
| credit under subsection (l) of Section 201;
| 34 |
| (E-10) For taxable years ending on or after |
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| December 31, 2000 and before December 31, 2004
2001 and | 2 |
| thereafter , an amount equal to the
bonus depreciation | 3 |
| deduction (30% of the adjusted basis of the qualified
| 4 |
| property)
taken on the taxpayer's federal income tax | 5 |
| return for the taxable
year under subsection (k) of | 6 |
| Section 168 of the Internal Revenue Code; and
| 7 |
| (E-11) If the taxpayer reports a capital gain or | 8 |
| loss on the
taxpayer's federal income tax return for | 9 |
| the taxable year based on a sale or
transfer of | 10 |
| property for which the taxpayer was required in any | 11 |
| taxable year to
make an addition modification under | 12 |
| subparagraph (E-10), then an amount equal
to the | 13 |
| aggregate amount of the deductions taken in all taxable
| 14 |
| years under subparagraph (T) with respect to that | 15 |
| property . ;
| 16 |
| The taxpayer is required to make the addition | 17 |
| modification under this
subparagraph
only once with | 18 |
| respect to any one piece of property;
| 19 |
| and by deducting from the total so obtained the sum of the | 20 |
| following
amounts:
| 21 |
| (F) An amount equal to the amount of any tax | 22 |
| imposed by this Act
which was refunded to the taxpayer | 23 |
| and included in such total for the
taxable year;
| 24 |
| (G) An amount equal to any amount included in such | 25 |
| total under
Section 78 of the Internal Revenue Code;
| 26 |
| (H) In the case of a regulated investment company, | 27 |
| an amount equal
to the amount of exempt interest | 28 |
| dividends as defined in subsection (b)
(5) of Section | 29 |
| 852 of the Internal Revenue Code, paid to shareholders
| 30 |
| for the taxable year;
| 31 |
| (I) With the exception of any amounts subtracted | 32 |
| under subparagraph
(J),
an amount equal to the sum of | 33 |
| all amounts disallowed as
deductions by (i) Sections | 34 |
| 171(a) (2), and 265(a)(2) and amounts disallowed as
|
|
|
|
09300SB2211ham001 |
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LRB093 15834 RCE 51234 a |
|
| 1 |
| interest expense by Section 291(a)(3) of the Internal | 2 |
| Revenue Code, as now
or hereafter amended, and all | 3 |
| amounts of expenses allocable to interest and
| 4 |
| disallowed as deductions by Section 265(a)(1) of the | 5 |
| Internal Revenue Code,
as now or hereafter amended;
and | 6 |
| (ii) for taxable years
ending on or after August 13, | 7 |
| 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and | 8 |
| 832(b)(5)(B)(i) of the Internal Revenue Code; the
| 9 |
| provisions of this
subparagraph are exempt from the | 10 |
| provisions of Section 250;
| 11 |
| (J) An amount equal to all amounts included in such | 12 |
| total which are
exempt from taxation by this State | 13 |
| either by reason of its statutes or
Constitution
or by | 14 |
| reason of the Constitution, treaties or statutes of the | 15 |
| United States;
provided that, in the case of any | 16 |
| statute of this State that exempts income
derived from | 17 |
| bonds or other obligations from the tax imposed under | 18 |
| this Act,
the amount exempted shall be the interest net | 19 |
| of bond premium amortization;
| 20 |
| (K) An amount equal to those dividends included in | 21 |
| such total
which were paid by a corporation which | 22 |
| conducts
business operations in an Enterprise Zone or | 23 |
| zones created under
the Illinois Enterprise Zone Act | 24 |
| and conducts substantially all of its
operations in an | 25 |
| Enterprise Zone or zones;
| 26 |
| (L) An amount equal to those dividends included in | 27 |
| such total that
were paid by a corporation that | 28 |
| conducts business operations in a federally
designated | 29 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 30 |
| High Impact
Business located in Illinois; provided | 31 |
| that dividends eligible for the
deduction provided in | 32 |
| subparagraph (K) of paragraph 2 of this subsection
| 33 |
| shall not be eligible for the deduction provided under | 34 |
| this subparagraph
(L);
|
|
|
|
09300SB2211ham001 |
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LRB093 15834 RCE 51234 a |
|
| 1 |
| (M) For any taxpayer that is a financial | 2 |
| organization within the meaning
of Section 304(c) of | 3 |
| this Act, an amount included in such total as interest
| 4 |
| income from a loan or loans made by such taxpayer to a | 5 |
| borrower, to the extent
that such a loan is secured by | 6 |
| property which is eligible for the Enterprise
Zone | 7 |
| Investment Credit. To determine the portion of a loan | 8 |
| or loans that is
secured by property eligible for a | 9 |
| Section 201(f) investment
credit to the borrower, the | 10 |
| entire principal amount of the loan or loans
between | 11 |
| the taxpayer and the borrower should be divided into | 12 |
| the basis of the
Section 201(f) investment credit | 13 |
| property which secures the
loan or loans, using for | 14 |
| this purpose the original basis of such property on
the | 15 |
| date that it was placed in service in the
Enterprise | 16 |
| Zone. The subtraction modification available to | 17 |
| taxpayer in any
year under this subsection shall be | 18 |
| that portion of the total interest paid
by the borrower | 19 |
| with respect to such loan attributable to the eligible
| 20 |
| property as calculated under the previous sentence;
| 21 |
| (M-1) For any taxpayer that is a financial | 22 |
| organization within the
meaning of Section 304(c) of | 23 |
| this Act, an amount included in such total as
interest | 24 |
| income from a loan or loans made by such taxpayer to a | 25 |
| borrower,
to the extent that such a loan is secured by | 26 |
| property which is eligible for
the High Impact Business | 27 |
| Investment Credit. To determine the portion of a
loan | 28 |
| or loans that is secured by property eligible for a | 29 |
| Section 201(h) investment credit to the borrower, the | 30 |
| entire principal amount of
the loan or loans between | 31 |
| the taxpayer and the borrower should be divided into
| 32 |
| the basis of the Section 201(h) investment credit | 33 |
| property which
secures the loan or loans, using for | 34 |
| this purpose the original basis of such
property on the |
|
|
|
09300SB2211ham001 |
- 16 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| date that it was placed in service in a federally | 2 |
| designated
Foreign Trade Zone or Sub-Zone located in | 3 |
| Illinois. No taxpayer that is
eligible for the | 4 |
| deduction provided in subparagraph (M) of paragraph | 5 |
| (2) of
this subsection shall be eligible for the | 6 |
| deduction provided under this
subparagraph (M-1). The | 7 |
| subtraction modification available to taxpayers in
any | 8 |
| year under this subsection shall be that portion of the | 9 |
| total interest
paid by the borrower with respect to | 10 |
| such loan attributable to the eligible
property as | 11 |
| calculated under the previous sentence;
| 12 |
| (N) Two times any contribution made during the | 13 |
| taxable year to a
designated zone organization to the | 14 |
| extent that the contribution (i)
qualifies as a | 15 |
| charitable contribution under subsection (c) of | 16 |
| Section 170
of the Internal Revenue Code and (ii) must, | 17 |
| by its terms, be used for a
project approved by the | 18 |
| Department of Commerce and Economic Opportunity
| 19 |
| Community Affairs under Section 11 of the Illinois | 20 |
| Enterprise Zone Act;
| 21 |
| (O) An amount equal to: (i) 85% for taxable years | 22 |
| ending on or before
December 31, 1992, or, a percentage | 23 |
| equal to the percentage allowable under
Section | 24 |
| 243(a)(1) of the Internal Revenue Code of 1986 for | 25 |
| taxable years ending
after December 31, 1992, of the | 26 |
| amount by which dividends included in taxable
income | 27 |
| and received from a corporation that is not created or | 28 |
| organized under
the laws of the United States or any | 29 |
| state or political subdivision thereof,
including, for | 30 |
| taxable years ending on or after December 31, 1988, | 31 |
| dividends
received or deemed received or paid or deemed | 32 |
| paid under Sections 951 through
964 of the Internal | 33 |
| Revenue Code, exceed the amount of the modification
| 34 |
| provided under subparagraph (G) of paragraph (2) of |
|
|
|
09300SB2211ham001 |
- 17 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| this subsection (b) which
is related to such dividends; | 2 |
| plus (ii) 100% of the amount by which dividends,
| 3 |
| included in taxable income and received, including, | 4 |
| for taxable years ending on
or after December 31, 1988, | 5 |
| dividends received or deemed received or paid or
deemed | 6 |
| paid under Sections 951 through 964 of the Internal | 7 |
| Revenue Code, from
any such corporation specified in | 8 |
| clause (i) that would but for the provisions
of Section | 9 |
| 1504 (b) (3) of the Internal Revenue Code be treated as | 10 |
| a member of
the affiliated group which includes the | 11 |
| dividend recipient, exceed the amount
of the | 12 |
| modification provided under subparagraph (G) of | 13 |
| paragraph (2) of this
subsection (b) which is related | 14 |
| to such dividends;
| 15 |
| (P) An amount equal to any contribution made to a | 16 |
| job training project
established pursuant to the Tax | 17 |
| Increment Allocation Redevelopment Act;
| 18 |
| (Q) An amount equal to the amount of the deduction | 19 |
| used to compute the
federal income tax credit for | 20 |
| restoration of substantial amounts held under
claim of | 21 |
| right for the taxable year pursuant to Section 1341 of | 22 |
| the
Internal Revenue Code of 1986;
| 23 |
| (R) In the case of an attorney-in-fact with respect | 24 |
| to whom an
interinsurer or a reciprocal insurer has | 25 |
| made the election under Section 835 of
the Internal | 26 |
| Revenue Code, 26 U.S.C. 835, an amount equal to the | 27 |
| excess, if
any, of the amounts paid or incurred by that | 28 |
| interinsurer or reciprocal insurer
in the taxable year | 29 |
| to the attorney-in-fact over the deduction allowed to | 30 |
| that
interinsurer or reciprocal insurer with respect | 31 |
| to the attorney-in-fact under
Section 835(b) of the | 32 |
| Internal Revenue Code for the taxable year;
| 33 |
| (S) For taxable years ending on or after December | 34 |
| 31, 1997, in the
case of a Subchapter
S corporation, an |
|
|
|
09300SB2211ham001 |
- 18 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| amount equal to all amounts of income allocable to a
| 2 |
| shareholder subject to the Personal Property Tax | 3 |
| Replacement Income Tax imposed
by subsections (c) and | 4 |
| (d) of Section 201 of this Act, including amounts
| 5 |
| allocable to organizations exempt from federal income | 6 |
| tax by reason of Section
501(a) of the Internal Revenue | 7 |
| Code. This subparagraph (S) is exempt from
the | 8 |
| provisions of Section 250;
| 9 |
| (T) For each taxable year ending before December | 10 |
| 31, 2004
years 2001 and thereafter , for the taxable | 11 |
| year in
which the bonus depreciation deduction (30% of | 12 |
| the adjusted basis of the
qualified property) is taken | 13 |
| on the taxpayer's federal income tax return under
| 14 |
| subsection (k) of Section 168 of the Internal Revenue | 15 |
| Code and for each
applicable taxable year thereafter, | 16 |
| an amount equal to "x", where:
| 17 |
| (1) "y" equals the amount of the depreciation | 18 |
| deduction taken for the
taxable year
on the | 19 |
| taxpayer's federal income tax return on property | 20 |
| for which the bonus
depreciation deduction (30% of | 21 |
| the adjusted basis of the qualified property)
was | 22 |
| taken in any year under subsection (k) of Section | 23 |
| 168 of the Internal
Revenue Code (for this purpose, | 24 |
| the depreciation deduction taken for the taxable | 25 |
| year on the taxpayer's federal income tax return is | 26 |
| deemed to take into account any depreciation | 27 |
| adjustment required under Section 203(e)(2)(I)) , | 28 |
| but not including the bonus depreciation | 29 |
| deduction; and
| 30 |
| (2) for property on which a bonus depreciation | 31 |
| deduction of 30% of the adjusted basis was taken,
| 32 |
| "x" equals "y" multiplied by 30 and then divided by | 33 |
| 70 (or "y"
multiplied by 0.429) , and for property | 34 |
| on which a bonus depreciation deduction of 50% of |
|
|
|
09300SB2211ham001 |
- 19 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| the adjusted basis was taken, "x" equals "y" | 2 |
| multiplied by 1.0 .
| 3 |
| The aggregate amount deducted under this | 4 |
| subparagraph in all taxable
years for any one piece of | 5 |
| property may not exceed the amount of the bonus
| 6 |
| depreciation deduction (30% of the adjusted basis of | 7 |
| the qualified property)
taken on that property on the | 8 |
| taxpayer's federal income tax return under
subsection | 9 |
| (k) of Section 168 of the Internal Revenue Code; and
| 10 |
| (U) If the taxpayer reports a capital gain or loss | 11 |
| on the taxpayer's
federal income tax return for the | 12 |
| taxable year based on a sale or transfer of
property | 13 |
| for which the taxpayer was required in any taxable year | 14 |
| to make an
addition modification under subparagraph | 15 |
| (E-10), then an amount equal to that
addition | 16 |
| modification.
| 17 |
| The taxpayer is allowed to take the deduction under | 18 |
| this subparagraph
only once with respect to any one | 19 |
| piece of property.
| 20 |
| (3) Special rule. For purposes of paragraph (2) (A), | 21 |
| "gross income"
in the case of a life insurance company, for | 22 |
| tax years ending on and after
December 31, 1994,
shall mean | 23 |
| the gross investment income for the taxable year.
| 24 |
| (c) Trusts and estates.
| 25 |
| (1) In general. In the case of a trust or estate, base | 26 |
| income means
an amount equal to the taxpayer's taxable | 27 |
| income for the taxable year as
modified by paragraph (2).
| 28 |
| (2) Modifications. Subject to the provisions of | 29 |
| paragraph (3), the
taxable income referred to in paragraph | 30 |
| (1) shall be modified by adding
thereto the sum of the | 31 |
| following amounts:
| 32 |
| (A) An amount equal to all amounts paid or accrued | 33 |
| to the taxpayer
as interest or dividends during the |
|
|
|
09300SB2211ham001 |
- 20 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| taxable year to the extent excluded
from gross income | 2 |
| in the computation of taxable income;
| 3 |
| (B) In the case of (i) an estate, $600; (ii) a | 4 |
| trust which, under
its governing instrument, is | 5 |
| required to distribute all of its income
currently, | 6 |
| $300; and (iii) any other trust, $100, but in each such | 7 |
| case,
only to the extent such amount was deducted in | 8 |
| the computation of
taxable income;
| 9 |
| (C) An amount equal to the amount of tax imposed by | 10 |
| this Act to the
extent deducted from gross income in | 11 |
| the computation of taxable income
for the taxable year;
| 12 |
| (D) The amount of any net operating loss deduction | 13 |
| taken in arriving at
taxable income, other than a net | 14 |
| operating loss carried forward from a
taxable year | 15 |
| ending prior to December 31, 1986;
| 16 |
| (E) For taxable years in which a net operating loss | 17 |
| carryback or
carryforward from a taxable year ending | 18 |
| prior to December 31, 1986 is an
element of taxable | 19 |
| income under paragraph (1) of subsection (e) or | 20 |
| subparagraph
(E) of paragraph (2) of subsection (e), | 21 |
| the amount by which addition
modifications other than | 22 |
| those provided by this subparagraph (E) exceeded
| 23 |
| subtraction modifications in such taxable year, with | 24 |
| the following limitations
applied in the order that | 25 |
| they are listed:
| 26 |
| (i) the addition modification relating to the | 27 |
| net operating loss
carried back or forward to the | 28 |
| taxable year from any taxable year ending
prior to | 29 |
| December 31, 1986 shall be reduced by the amount of | 30 |
| addition
modification under this subparagraph (E) | 31 |
| which related to that net
operating loss and which | 32 |
| was taken into account in calculating the base
| 33 |
| income of an earlier taxable year, and
| 34 |
| (ii) the addition modification relating to the |
|
|
|
09300SB2211ham001 |
- 21 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| net operating loss
carried back or forward to the | 2 |
| taxable year from any taxable year ending
prior to | 3 |
| December 31, 1986 shall not exceed the amount of | 4 |
| such carryback or
carryforward;
| 5 |
| For taxable years in which there is a net operating | 6 |
| loss carryback or
carryforward from more than one other | 7 |
| taxable year ending prior to December
31, 1986, the | 8 |
| addition modification provided in this subparagraph | 9 |
| (E) shall
be the sum of the amounts computed | 10 |
| independently under the preceding
provisions of this | 11 |
| subparagraph (E) for each such taxable year;
| 12 |
| (F) For taxable years ending on or after January 1, | 13 |
| 1989, an amount
equal to the tax deducted pursuant to | 14 |
| Section 164 of the Internal Revenue
Code if the trust | 15 |
| or estate is claiming the same tax for purposes of the
| 16 |
| Illinois foreign tax credit under Section 601 of this | 17 |
| Act;
| 18 |
| (G) An amount equal to the amount of the capital | 19 |
| gain deduction
allowable under the Internal Revenue | 20 |
| Code, to the extent deducted from
gross income in the | 21 |
| computation of taxable income;
| 22 |
| (G-5) For taxable years ending after December 31, | 23 |
| 1997, an
amount equal to any eligible remediation costs | 24 |
| that the trust or estate
deducted in computing adjusted | 25 |
| gross income and for which the trust
or estate claims a | 26 |
| credit under subsection (l) of Section 201;
| 27 |
| (G-10) For taxable years ending on or after | 28 |
| December 31, 2000 and before December 31, 2004,
2001 | 29 |
| and thereafter , an amount equal to the
bonus | 30 |
| depreciation deduction (30% of the adjusted basis of | 31 |
| the qualified
property)
taken on the taxpayer's | 32 |
| federal income tax return for the taxable
year under | 33 |
| subsection (k) of Section 168 of the Internal Revenue | 34 |
| Code; and
|
|
|
|
09300SB2211ham001 |
- 22 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| (G-11) If the taxpayer reports a capital gain or | 2 |
| loss on the
taxpayer's federal income tax return for | 3 |
| the taxable year based on a sale or
transfer of | 4 |
| property for which the taxpayer was required in any | 5 |
| taxable year to
make an addition modification under | 6 |
| subparagraph (G-10), then an amount equal
to the | 7 |
| aggregate amount of the deductions taken in all taxable
| 8 |
| years under subparagraph (R) with respect to that | 9 |
| property . ;
| 10 |
| The taxpayer is required to make the addition | 11 |
| modification under this
subparagraph
only once with | 12 |
| respect to any one piece of property;
| 13 |
| and by deducting from the total so obtained the sum of the | 14 |
| following
amounts:
| 15 |
| (H) An amount equal to all amounts included in such | 16 |
| total pursuant
to the provisions of Sections 402(a), | 17 |
| 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | 18 |
| Internal Revenue Code or included in such total as
| 19 |
| distributions under the provisions of any retirement | 20 |
| or disability plan for
employees of any governmental | 21 |
| agency or unit, or retirement payments to
retired | 22 |
| partners, which payments are excluded in computing net | 23 |
| earnings
from self employment by Section 1402 of the | 24 |
| Internal Revenue Code and
regulations adopted pursuant | 25 |
| thereto;
| 26 |
| (I) The valuation limitation amount;
| 27 |
| (J) An amount equal to the amount of any tax | 28 |
| imposed by this Act
which was refunded to the taxpayer | 29 |
| and included in such total for the
taxable year;
| 30 |
| (K) An amount equal to all amounts included in | 31 |
| taxable income as
modified by subparagraphs (A), (B), | 32 |
| (C), (D), (E), (F) and (G) which
are exempt from | 33 |
| taxation by this State either by reason of its statutes | 34 |
| or
Constitution
or by reason of the Constitution, |
|
|
|
09300SB2211ham001 |
- 23 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| treaties or statutes of the United States;
provided | 2 |
| that, in the case of any statute of this State that | 3 |
| exempts income
derived from bonds or other obligations | 4 |
| from the tax imposed under this Act,
the amount | 5 |
| exempted shall be the interest net of bond premium | 6 |
| amortization;
| 7 |
| (L) With the exception of any amounts subtracted | 8 |
| under subparagraph
(K),
an amount equal to the sum of | 9 |
| all amounts disallowed as
deductions by (i) Sections | 10 |
| 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | 11 |
| as now or hereafter amended, and all amounts of | 12 |
| expenses allocable
to interest and disallowed as | 13 |
| deductions by Section 265(1) of the Internal
Revenue | 14 |
| Code of 1954, as now or hereafter amended;
and (ii) for | 15 |
| taxable years
ending on or after August 13, 1999, | 16 |
| Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 17 |
| the Internal Revenue Code; the provisions of this
| 18 |
| subparagraph are exempt from the provisions of Section | 19 |
| 250;
| 20 |
| (M) An amount equal to those dividends included in | 21 |
| such total
which were paid by a corporation which | 22 |
| conducts business operations in an
Enterprise Zone or | 23 |
| zones created under the Illinois Enterprise Zone Act | 24 |
| and
conducts substantially all of its operations in an | 25 |
| Enterprise Zone or Zones;
| 26 |
| (N) An amount equal to any contribution made to a | 27 |
| job training
project established pursuant to the Tax | 28 |
| Increment Allocation
Redevelopment Act;
| 29 |
| (O) An amount equal to those dividends included in | 30 |
| such total
that were paid by a corporation that | 31 |
| conducts business operations in a
federally designated | 32 |
| Foreign Trade Zone or Sub-Zone and that is designated
a | 33 |
| High Impact Business located in Illinois; provided | 34 |
| that dividends eligible
for the deduction provided in |
|
|
|
09300SB2211ham001 |
- 24 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| subparagraph (M) of paragraph (2) of this
subsection | 2 |
| shall not be eligible for the deduction provided under | 3 |
| this
subparagraph (O);
| 4 |
| (P) An amount equal to the amount of the deduction | 5 |
| used to compute the
federal income tax credit for | 6 |
| restoration of substantial amounts held under
claim of | 7 |
| right for the taxable year pursuant to Section 1341 of | 8 |
| the
Internal Revenue Code of 1986;
| 9 |
| (Q) For taxable year 1999 and thereafter, an amount | 10 |
| equal to the
amount of any
(i) distributions, to the | 11 |
| extent includible in gross income for
federal income | 12 |
| tax purposes, made to the taxpayer because of
his or | 13 |
| her status as a victim of
persecution for racial or | 14 |
| religious reasons by Nazi Germany or any other Axis
| 15 |
| regime or as an heir of the victim and (ii) items
of | 16 |
| income, to the extent
includible in gross income for | 17 |
| federal income tax purposes, attributable to,
derived | 18 |
| from or in any way related to assets stolen from, | 19 |
| hidden from, or
otherwise lost to a victim of
| 20 |
| persecution for racial or religious reasons by Nazi
| 21 |
| Germany or any other Axis regime
immediately prior to, | 22 |
| during, and immediately after World War II, including,
| 23 |
| but
not limited to, interest on the proceeds receivable | 24 |
| as insurance
under policies issued to a victim of | 25 |
| persecution for racial or religious
reasons by Nazi | 26 |
| Germany or any other Axis regime by European insurance
| 27 |
| companies
immediately prior to and during World War II;
| 28 |
| provided, however, this subtraction from federal | 29 |
| adjusted gross income does not
apply to assets acquired | 30 |
| with such assets or with the proceeds from the sale of
| 31 |
| such assets; provided, further, this paragraph shall | 32 |
| only apply to a taxpayer
who was the first recipient of | 33 |
| such assets after their recovery and who is a
victim of
| 34 |
| persecution for racial or religious reasons
by Nazi |
|
|
|
09300SB2211ham001 |
- 25 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| Germany or any other Axis regime or as an heir of the | 2 |
| victim. The
amount of and the eligibility for any | 3 |
| public assistance, benefit, or
similar entitlement is | 4 |
| not affected by the inclusion of items (i) and (ii) of
| 5 |
| this paragraph in gross income for federal income tax | 6 |
| purposes.
This paragraph is exempt from the provisions | 7 |
| of Section 250;
| 8 |
| (R) For each taxable year ending before December | 9 |
| 31, 2004
years 2001 and thereafter , for the taxable | 10 |
| year in
which the bonus depreciation deduction (30% of | 11 |
| the adjusted basis of the
qualified property) is taken | 12 |
| on the taxpayer's federal income tax return under
| 13 |
| subsection (k) of Section 168 of the Internal Revenue | 14 |
| Code and for each
applicable taxable year thereafter, | 15 |
| an amount equal to "x", where:
| 16 |
| (1) "y" equals the amount of the depreciation | 17 |
| deduction taken for the
taxable year
on the | 18 |
| taxpayer's federal income tax return on property | 19 |
| for which the bonus
depreciation deduction (30% of | 20 |
| the adjusted basis of the qualified property)
was | 21 |
| taken in any year under subsection (k) of Section | 22 |
| 168 of the Internal
Revenue Code (for this purpose, | 23 |
| the depreciation deduction taken for the taxable | 24 |
| year on the taxpayer's federal income tax return is | 25 |
| deemed to take into account any depreciation | 26 |
| adjustment required under Section 203(e)(2)(I)) , | 27 |
| but not including the bonus depreciation | 28 |
| deduction; and
| 29 |
| (2) for property on which a bonus depreciation | 30 |
| deduction of 30% of the adjusted basis was taken,
| 31 |
| "x" equals "y" multiplied by 30 and then divided by | 32 |
| 70 (or "y"
multiplied by 0.429) , and for property | 33 |
| on which a bonus depreciation deduction of 50% of | 34 |
| the adjusted basis was taken, "x" equals "y" |
|
|
|
09300SB2211ham001 |
- 26 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| multiplied by 1.0 .
| 2 |
| The aggregate amount deducted under this | 3 |
| subparagraph in all taxable
years for any one piece of | 4 |
| property may not exceed the amount of the bonus
| 5 |
| depreciation deduction (30% of the adjusted basis of | 6 |
| the qualified property)
taken on that property on the | 7 |
| taxpayer's federal income tax return under
subsection | 8 |
| (k) of Section 168 of the Internal Revenue Code; and
| 9 |
| (S) If the taxpayer reports a capital gain or loss | 10 |
| on the taxpayer's
federal income tax return for the | 11 |
| taxable year based on a sale or transfer of
property | 12 |
| for which the taxpayer was required in any taxable year | 13 |
| to make an
addition modification under subparagraph | 14 |
| (G-10), then an amount equal to that
addition | 15 |
| modification.
| 16 |
| The taxpayer is allowed to take the deduction under | 17 |
| this subparagraph
only once with respect to any one | 18 |
| piece of property.
| 19 |
| (3) Limitation. The amount of any modification | 20 |
| otherwise required
under this subsection shall, under | 21 |
| regulations prescribed by the
Department, be adjusted by | 22 |
| any amounts included therein which were
properly paid, | 23 |
| credited, or required to be distributed, or permanently set
| 24 |
| aside for charitable purposes pursuant to Internal Revenue | 25 |
| Code Section
642(c) during the taxable year.
| 26 |
| (d) Partnerships.
| 27 |
| (1) In general. In the case of a partnership, base | 28 |
| income means an
amount equal to the taxpayer's taxable | 29 |
| income for the taxable year as
modified by paragraph (2).
| 30 |
| (2) Modifications. The taxable income referred to in | 31 |
| paragraph (1)
shall be modified by adding thereto the sum | 32 |
| of the following amounts:
| 33 |
| (A) An amount equal to all amounts paid or accrued |
|
|
|
09300SB2211ham001 |
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LRB093 15834 RCE 51234 a |
|
| 1 |
| to the taxpayer as
interest or dividends during the | 2 |
| taxable year to the extent excluded from
gross income | 3 |
| in the computation of taxable income;
| 4 |
| (B) An amount equal to the amount of tax imposed by | 5 |
| this Act to the
extent deducted from gross income for | 6 |
| the taxable year;
| 7 |
| (C) The amount of deductions allowed to the | 8 |
| partnership pursuant to
Section 707 (c) of the Internal | 9 |
| Revenue Code in calculating its taxable income;
| 10 |
| (D) An amount equal to the amount of the capital | 11 |
| gain deduction
allowable under the Internal Revenue | 12 |
| Code, to the extent deducted from
gross income in the | 13 |
| computation of taxable income;
| 14 |
| (D-5) For taxable years ending on or after December | 15 |
| 31, 2000 and before December 31, 2004,
2001 and | 16 |
| thereafter , an amount equal to the
bonus depreciation | 17 |
| deduction (30% of the adjusted basis of the qualified
| 18 |
| property)
taken on the taxpayer's federal income tax | 19 |
| return for the taxable
year under subsection (k) of | 20 |
| Section 168 of the Internal Revenue Code; and
| 21 |
| (D-6) If the taxpayer reports a capital gain or | 22 |
| loss on the taxpayer's
federal income tax return for | 23 |
| the taxable year based on a sale or transfer of
| 24 |
| property for which the taxpayer was required in any | 25 |
| taxable year to make an
addition modification under | 26 |
| subparagraph (D-5), then an amount equal to the
| 27 |
| aggregate amount of the deductions taken in all taxable | 28 |
| years
under subparagraph (O) with respect to that | 29 |
| property . ;
| 30 |
| The taxpayer is required to make the addition | 31 |
| modification under this
subparagraph
only once with | 32 |
| respect to any one piece of property;
| 33 |
| and by deducting from the total so obtained the following | 34 |
| amounts:
|
|
|
|
09300SB2211ham001 |
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LRB093 15834 RCE 51234 a |
|
| 1 |
| (E) The valuation limitation amount;
| 2 |
| (F) An amount equal to the amount of any tax | 3 |
| imposed by this Act which
was refunded to the taxpayer | 4 |
| and included in such total for the taxable year;
| 5 |
| (G) An amount equal to all amounts included in | 6 |
| taxable income as
modified by subparagraphs (A), (B), | 7 |
| (C) and (D) which are exempt from
taxation by this | 8 |
| State either by reason of its statutes or Constitution | 9 |
| or
by reason of
the Constitution, treaties or statutes | 10 |
| of the United States;
provided that, in the case of any | 11 |
| statute of this State that exempts income
derived from | 12 |
| bonds or other obligations from the tax imposed under | 13 |
| this Act,
the amount exempted shall be the interest net | 14 |
| of bond premium amortization;
| 15 |
| (H) Any income of the partnership which | 16 |
| constitutes personal service
income as defined in | 17 |
| Section 1348 (b) (1) of the Internal Revenue Code (as
| 18 |
| in effect December 31, 1981) or a reasonable allowance | 19 |
| for compensation
paid or accrued for services rendered | 20 |
| by partners to the partnership,
whichever is greater;
| 21 |
| (I) An amount equal to all amounts of income | 22 |
| distributable to an entity
subject to the Personal | 23 |
| Property Tax Replacement Income Tax imposed by
| 24 |
| subsections (c) and (d) of Section 201 of this Act | 25 |
| including amounts
distributable to organizations | 26 |
| exempt from federal income tax by reason of
Section | 27 |
| 501(a) of the Internal Revenue Code;
| 28 |
| (J) With the exception of any amounts subtracted | 29 |
| under subparagraph
(G),
an amount equal to the sum of | 30 |
| all amounts disallowed as deductions
by (i) Sections | 31 |
| 171(a) (2), and 265(2) of the Internal Revenue Code of | 32 |
| 1954,
as now or hereafter amended, and all amounts of | 33 |
| expenses allocable to
interest and disallowed as | 34 |
| deductions by Section 265(1) of the Internal
Revenue |
|
|
|
09300SB2211ham001 |
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LRB093 15834 RCE 51234 a |
|
| 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 each taxable year ending before December | 32 |
| 31, 2004
years 2001 and thereafter , for the taxable | 33 |
| year in
which the bonus depreciation deduction (30% of | 34 |
| the adjusted basis of the
qualified property) is taken |
|
|
|
09300SB2211ham001 |
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LRB093 15834 RCE 51234 a |
|
| 1 |
| on the taxpayer's federal income tax return under
| 2 |
| subsection (k) of Section 168 of the Internal Revenue | 3 |
| Code and for each
applicable taxable year thereafter, | 4 |
| an amount equal to "x", where:
| 5 |
| (1) "y" equals the amount of the depreciation | 6 |
| deduction taken for the
taxable year
on the | 7 |
| taxpayer's federal income tax return on property | 8 |
| for which the bonus
depreciation deduction (30% of | 9 |
| the adjusted basis of the qualified property)
was | 10 |
| taken in any year under subsection (k) of Section | 11 |
| 168 of the Internal
Revenue Code (for this purpose, | 12 |
| the depreciation deduction taken for the taxable | 13 |
| year on the taxpayer's federal income tax return is | 14 |
| deemed to take into account any depreciation | 15 |
| adjustment required under Section 203(e)(2)(I)) , | 16 |
| but not including the bonus depreciation | 17 |
| deduction; and
| 18 |
| (2) for property on which a bonus depreciation | 19 |
| deduction of 30% of the adjusted basis was taken,
| 20 |
| "x" equals "y" multiplied by 30 and then divided by | 21 |
| 70 (or "y"
multiplied by 0.429) , and for property | 22 |
| on which a bonus depreciation deduction of 50% of | 23 |
| the adjusted basis was taken, "x" equals "y" | 24 |
| multiplied by 1.0 .
| 25 |
| The aggregate amount deducted under this | 26 |
| subparagraph in all taxable
years for any one piece of | 27 |
| property may not exceed the amount of the bonus
| 28 |
| depreciation deduction (30% of the adjusted basis of | 29 |
| the qualified property)
taken on that property on the | 30 |
| taxpayer's federal income tax return under
subsection | 31 |
| (k) of Section 168 of the Internal Revenue Code; and
| 32 |
| (P) If the taxpayer reports a capital gain or loss | 33 |
| on the taxpayer's
federal income tax return for the | 34 |
| taxable year based on a sale or transfer of
property |
|
|
|
09300SB2211ham001 |
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LRB093 15834 RCE 51234 a |
|
| 1 |
| for which the taxpayer was required in any taxable year | 2 |
| to make an
addition modification under subparagraph | 3 |
| (D-5), then an amount equal to that
addition | 4 |
| modification.
| 5 |
| The taxpayer is allowed to take the deduction under | 6 |
| this subparagraph
only once with respect to any one | 7 |
| piece of property.
| 8 |
| (e) Gross income; adjusted gross income; taxable income.
| 9 |
| (1) In general. Subject to the provisions of paragraph | 10 |
| (2) and
subsection (b) (3), for purposes of this Section | 11 |
| and Section 803(e), a
taxpayer's gross income, adjusted | 12 |
| gross income, or taxable income for
the taxable year shall | 13 |
| mean the amount of gross income, adjusted gross
income or | 14 |
| taxable income properly reportable for federal income tax
| 15 |
| purposes for the taxable year under the provisions of the | 16 |
| Internal
Revenue Code. With respect to taxable years ending | 17 |
| on or after December 31, 2004, for purposes of determining | 18 |
| the amount of gross income, adjusted gross income, or | 19 |
| taxable income properly reportable for federal income tax | 20 |
| purposes: (i) there shall be taken into account the | 21 |
| depreciation adjustment and the basis adjustment required | 22 |
| by paragraph (2)(I) of this subsection; (ii) the provisions | 23 |
| of Section 179 of the Internal Revenue Code apply to the | 24 |
| extent that the Section is elected for federal income tax | 25 |
| purposes with respect to "Section 179 property", except | 26 |
| that the dollar limitation of Section 179(b)(1) shall be | 27 |
| deemed to be $25,000 for all taxable years and the | 28 |
| reduction in limitation under Section 179(b)(2) shall be | 29 |
| deemed to be $200,000 for all taxable years, without any | 30 |
| adjustment under Section 179(b)(5); and (iii) the gross | 31 |
| income, adjusted gross income, or taxable income shall be | 32 |
| determined as if the Internal Revenue Code required that, | 33 |
| with respect to property placed in service in taxable years |
|
|
|
09300SB2211ham001 |
- 32 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| ending on or after December 31, 2004, the depreciation | 2 |
| deduction determined under Section 168 of the Internal | 3 |
| Revenue Code must be determined under Section 168(g)(2) | 4 |
| (including the straight-line method and without any | 5 |
| special allowance under Section 168(k)). Taxable income | 6 |
| may be less than zero. However, for taxable
years ending on | 7 |
| or after December 31, 1986, net operating loss
| 8 |
| carryforwards from taxable years ending prior to December | 9 |
| 31, 1986, may not
exceed the sum of federal taxable income | 10 |
| for the taxable year before net
operating loss deduction, | 11 |
| plus the excess of addition modifications over
subtraction | 12 |
| modifications for the taxable year. For taxable years | 13 |
| ending
prior to December 31, 1986, taxable income may never | 14 |
| be an amount in excess
of the net operating loss for the | 15 |
| taxable year as defined in subsections
(c) and (d) of | 16 |
| Section 172 of the Internal Revenue Code, provided that | 17 |
| when
taxable income of a corporation (other than a | 18 |
| Subchapter S corporation),
trust, or estate is less than | 19 |
| zero and addition modifications, other than
those provided | 20 |
| by subparagraph (E) of paragraph (2) of subsection (b) for
| 21 |
| corporations or subparagraph (E) of paragraph (2) of | 22 |
| subsection (c) for
trusts and estates, exceed subtraction | 23 |
| modifications, an addition
modification must be made under | 24 |
| those subparagraphs for any other taxable
year to which the | 25 |
| taxable income less than zero (net operating loss) is
| 26 |
| applied under Section 172 of the Internal Revenue Code or | 27 |
| under
subparagraph (E) of paragraph (2) of this subsection | 28 |
| (e) applied in
conjunction with Section 172 of the Internal | 29 |
| Revenue Code.
| 30 |
| (2) Special rule. For purposes of paragraph (1) of this | 31 |
| subsection,
the taxable income properly reportable for | 32 |
| federal income tax purposes
shall mean:
| 33 |
| (A) Certain life insurance companies. In the case | 34 |
| of a life
insurance company subject to the tax imposed |
|
|
|
09300SB2211ham001 |
- 33 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| by Section 801 of the
Internal Revenue Code, life | 2 |
| insurance company taxable income, plus the
amount of | 3 |
| distribution from pre-1984 policyholder surplus | 4 |
| accounts as
calculated under Section 815a of the | 5 |
| Internal Revenue Code;
| 6 |
| (B) Certain other insurance companies. In the case | 7 |
| of mutual
insurance companies subject to the tax | 8 |
| imposed by Section 831 of the
Internal Revenue Code, | 9 |
| insurance company taxable income;
| 10 |
| (C) Regulated investment companies. In the case of | 11 |
| a regulated
investment company subject to the tax | 12 |
| imposed by Section 852 of the
Internal Revenue Code, | 13 |
| investment company taxable income;
| 14 |
| (D) Real estate investment trusts. In the case of a | 15 |
| real estate
investment trust subject to the tax imposed | 16 |
| by Section 857 of the
Internal Revenue Code, real | 17 |
| estate investment trust taxable income;
| 18 |
| (E) Consolidated corporations. In the case of a | 19 |
| corporation which
is a member of an affiliated group of | 20 |
| corporations filing a consolidated
income tax return | 21 |
| for the taxable year for federal income tax purposes,
| 22 |
| taxable income determined as if such corporation had | 23 |
| filed a separate
return for federal income tax purposes | 24 |
| for the taxable year and each
preceding taxable year | 25 |
| for which it was a member of an affiliated group.
For | 26 |
| purposes of this subparagraph, the taxpayer's separate | 27 |
| taxable
income shall be determined as if the election | 28 |
| provided by Section
243(b) (2) of the Internal Revenue | 29 |
| Code had been in effect for all such years;
| 30 |
| (F) Cooperatives. In the case of a cooperative | 31 |
| corporation or
association, the taxable income of such | 32 |
| organization determined in
accordance with the | 33 |
| provisions of Section 1381 through 1388 of the
Internal | 34 |
| Revenue Code;
|
|
|
|
09300SB2211ham001 |
- 34 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| (G) Subchapter S corporations. In the case of: (i) | 2 |
| a Subchapter S
corporation for which there is in effect | 3 |
| an election for the taxable year
under Section 1362 of | 4 |
| the Internal Revenue Code, the taxable income of such
| 5 |
| corporation determined in accordance with Section | 6 |
| 1363(b) of the Internal
Revenue Code, except that | 7 |
| taxable income shall take into
account those items | 8 |
| which are required by Section 1363(b)(1) of the
| 9 |
| Internal Revenue Code to be separately stated; and (ii) | 10 |
| a Subchapter
S corporation for which there is in effect | 11 |
| a federal election to opt out of
the provisions of the | 12 |
| Subchapter S Revision Act of 1982 and have applied
| 13 |
| instead the prior federal Subchapter S rules as in | 14 |
| effect on July 1, 1982,
the taxable income of such | 15 |
| corporation determined in accordance with the
federal | 16 |
| Subchapter S rules as in effect on July 1, 1982; and
| 17 |
| (H) Partnerships. In the case of a partnership, | 18 |
| taxable income
determined in accordance with Section | 19 |
| 703 of the Internal Revenue Code,
except that taxable | 20 |
| income shall take into account those items which are
| 21 |
| required by Section 703(a)(1) to be separately stated | 22 |
| but which would be
taken into account by an individual | 23 |
| in calculating his taxable income. | 24 |
| (I) Depreciation and basis adjustments for all | 25 |
| taxpayers. | 26 |
| (A) Depreciation adjustment. With respect to | 27 |
| property placed in service in taxable years ending | 28 |
| before December 31, 2004, the depreciation | 29 |
| deduction allowed under Section 167 of the | 30 |
| Internal Revenue Code, with respect to property as | 31 |
| to which the deduction is determined under Section | 32 |
| 168 of the Code, shall be determined as if the | 33 |
| Internal Revenue Code required a switch to the | 34 |
| straight-line method beginning with that |
|
|
|
09300SB2211ham001 |
- 35 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| property's adjusted basis for federal income tax | 2 |
| purposes as of the beginning of the last taxable | 3 |
| year beginning before December 31, 2004. | 4 |
| (B) Basis adjustment. With respect to property | 5 |
| subject to subparagraph (A) of this paragraph, the | 6 |
| adjustment otherwise required under Section 1016 | 7 |
| of the Internal Revenue Code shall take into | 8 |
| account the depreciation adjustment required under | 9 |
| subparagraph (A).
| 10 |
| (f) Valuation limitation amount.
| 11 |
| (1) In general. The valuation limitation amount | 12 |
| referred to in
subsections (a) (2) (G), (c) (2) (I) and | 13 |
| (d)(2) (E) is an amount equal to:
| 14 |
| (A) The sum of the pre-August 1, 1969 appreciation | 15 |
| amounts (to the
extent consisting of gain reportable | 16 |
| under the provisions of Section
1245 or 1250 of the | 17 |
| Internal Revenue Code) for all property in respect
of | 18 |
| which such gain was reported for the taxable year; plus
| 19 |
| (B) The lesser of (i) the sum of the pre-August 1, | 20 |
| 1969 appreciation
amounts (to the extent consisting of | 21 |
| capital gain) for all property in
respect of which such | 22 |
| gain was reported for federal income tax purposes
for | 23 |
| the taxable year, or (ii) the net capital gain for the | 24 |
| taxable year,
reduced in either case by any amount of | 25 |
| such gain included in the amount
determined under | 26 |
| subsection (a) (2) (F) or (c) (2) (H).
| 27 |
| (2) Pre-August 1, 1969 appreciation amount.
| 28 |
| (A) If the fair market value of property referred | 29 |
| to in paragraph
(1) was readily ascertainable on August | 30 |
| 1, 1969, the pre-August 1, 1969
appreciation amount for | 31 |
| such property is the lesser of (i) the excess of
such | 32 |
| fair market value over the taxpayer's basis (for | 33 |
| determining gain)
for such property on that date |
|
|
|
09300SB2211ham001 |
- 36 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| (determined under the Internal Revenue
Code as in | 2 |
| effect on that date), or (ii) the total gain realized | 3 |
| and
reportable for federal income tax purposes in | 4 |
| respect of the sale,
exchange or other disposition of | 5 |
| such property.
| 6 |
| (B) If the fair market value of property referred | 7 |
| to in paragraph
(1) was not readily ascertainable on | 8 |
| August 1, 1969, the pre-August 1,
1969 appreciation | 9 |
| amount for such property is that amount which bears
the | 10 |
| same ratio to the total gain reported in respect of the | 11 |
| property for
federal income tax purposes for the | 12 |
| taxable year, as the number of full
calendar months in | 13 |
| that part of the taxpayer's holding period for the
| 14 |
| property ending July 31, 1969 bears to the number of | 15 |
| full calendar
months in the taxpayer's entire holding | 16 |
| period for the
property.
| 17 |
| (C) The Department shall prescribe such | 18 |
| regulations as may be
necessary to carry out the | 19 |
| purposes of this paragraph.
| 20 |
| (g) Double deductions. Unless specifically provided | 21 |
| otherwise, nothing
in this Section shall permit the same item | 22 |
| to be deducted more than once.
| 23 |
| (h) Legislative intention. Except as expressly provided by | 24 |
| this
Section there shall be no modifications or limitations on | 25 |
| the amounts
of income, gain, loss or deduction taken into | 26 |
| account in determining
gross income, adjusted gross income or | 27 |
| taxable income for federal income
tax purposes for the taxable | 28 |
| year, or in the amount of such items
entering into the | 29 |
| computation of base income and net income under this
Act for | 30 |
| such taxable year, whether in respect of property values as of
| 31 |
| August 1, 1969 or otherwise.
| 32 |
| (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; |
|
|
|
09300SB2211ham001 |
- 37 - |
LRB093 15834 RCE 51234 a |
|
| 1 |
| 91-357, eff.
7-29-99; 91-541, eff. 8-13-99; 91-676, eff. | 2 |
| 12-23-99; 91-845, eff. 6-22-00;
91-913, eff. 1-1-01; 92-16, | 3 |
| eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff.
8-17-01; | 4 |
| 92-603, eff. 6-28-02; 92-626, eff. 7-11-02; 92-651, eff. | 5 |
| 7-11-02;
92-846, eff. 8-23-02; revised 10-15-03.)".
|
|