Full Text of HB3123 102nd General Assembly
HB3123ham001 102ND GENERAL ASSEMBLY | Rep. Delia C. Ramirez Filed: 3/22/2021
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| 1 | | AMENDMENT TO HOUSE BILL 3123
| 2 | | AMENDMENT NO. ______. Amend House Bill 3123 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the Build | 5 | | Illinois Homes Tax Credit Act. | 6 | | Section 5. Definitions. As used in this Act, unless the | 7 | | context clearly requires otherwise: | 8 | | "Allocation" means an award of tax credits to the owner of | 9 | | a qualified development in any allocation round, to be claimed | 10 | | ratably annually over the credit period. | 11 | | "Allocation round" means all allocations by the Authority | 12 | | of credits under this Act to qualified developments in any | 13 | | calendar year. | 14 | | "Allocation schedule certification" means the | 15 | | certification issued by the owner of a qualified development | 16 | | or its designee pursuant to subsection (d) of Section 10 of |
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| 1 | | this Act. | 2 | | "Authority" means: | 3 | | (1) the Illinois Housing Development Authority; or | 4 | | (2) the City of Chicago Department of Housing. | 5 | | "Credit" means the credit allowed pursuant to this Act. | 6 | | "Credit period" means the period of 10 taxable years | 7 | | beginning with the taxable year in which a qualified | 8 | | development is placed in service. No credit period may include | 9 | | a taxable year beginning prior to January 1, 2022. If a | 10 | | qualified development consists of more than one building, the | 11 | | qualified development is deemed to be placed in service in the | 12 | | taxable year during which the last building of the qualified | 13 | | development is placed in service. | 14 | | "Department" means the Department of Revenue. | 15 | | "Federal tax credit" means the federal low-income housing | 16 | | tax credit provided by Section 42 of the federal Internal | 17 | | Revenue Code, including federal low-income housing tax credits | 18 | | issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4). | 19 | | "Qualified allocation plan" means the qualified allocation | 20 | | plan adopted by the Authority pursuant to Section 42(m) of the | 21 | | federal Internal Revenue Code of 1986. | 22 | | "Qualified basis" means the qualified basis of the | 23 | | qualified development as determined pursuant to Section 42 of | 24 | | the federal Internal Revenue Code of 1986. | 25 | | "Qualified development" means a qualified low-income | 26 | | housing project, as that term is defined in Section 42 of the |
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| 1 | | federal Internal Revenue Code of 1986, that is located in the | 2 | | State and is determined to be eligible for the federal tax | 3 | | credit set forth in Section 42 of the Internal Revenue Code. | 4 | | "Qualified taxpayer" means an individual, person, firm, | 5 | | corporation, or other entity that owns an interest, direct or | 6 | | indirect, in a qualified development and is subject to any or | 7 | | all of the following: (i) the taxes imposed by the Illinois | 8 | | Income Tax Act; or (ii) any privilege tax or retaliatory tax, | 9 | | penalty, fee, charge or payment imposed by the Illinois | 10 | | Insurance Code. | 11 | | "State credit eligibility statement" means a statement | 12 | | issued by the Authority under Section 7. | 13 | | "State tax return" means the income tax return filed with | 14 | | the Department or the privilege and retaliatory tax return | 15 | | filed with the Department of Insurance, as applicable. | 16 | | Section 7. State credit eligibility statements. A State | 17 | | credit eligibility statement shall be issued by the Authority | 18 | | with respect to each building within the qualified development | 19 | | following construction or rehabilitation of the qualified | 20 | | development certifying that each such building within that | 21 | | qualified development qualifies for the credit and specifying: | 22 | | (1) the calendar year in which the last building of | 23 | | the qualified development was placed in service; | 24 | | (2) the amount of the credit allowed for each year of | 25 | | the credit period; |
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| 1 | | (3) the maximum qualified basis of the qualified | 2 | | development taken into account in determining such annual | 3 | | credit amount; and | 4 | | (4) a unique identification number for each State | 5 | | credit eligibility statement issued. | 6 | | The State credit eligibility statement shall be issued by | 7 | | the Authority simultaneously with IRS Form 8609 if the | 8 | | qualified development was also allocated federal tax credits. | 9 | | The State credit eligibility statement shall include a | 10 | | Section to be completed by the owner of the qualified | 11 | | development annually for each year of the credit period | 12 | | certifying that the qualified development was in conformance | 13 | | with all compliance requirements. That certification shall be | 14 | | filed with the project owner's State tax return annually of | 15 | | each year of the credit period. | 16 | | Section 10. Credit for low-income housing developments. | 17 | | (a) The Authority shall include the credit in its annual | 18 | | qualified allocation plan each year until expiration of this | 19 | | Act. Each allocation round shall be simultaneous with | 20 | | allocations of federal tax credits. | 21 | | (b) For taxable years beginning on or after January 1, | 22 | | 2021, the Authority may allocate a credit to the owner of a | 23 | | qualified development in any allocation round in an amount | 24 | | determined by the Authority, subject to the following | 25 | | guidelines: |
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| 1 | | (1) the Authority must find that the credit is | 2 | | necessary for the financial feasibility of the qualified | 3 | | development; | 4 | | (2) the aggregate sum of credits allocated to | 5 | | qualified developments in any allocation round shall not | 6 | | exceed $35,000,000, plus the amount of unallocated | 7 | | credits, if any, from the preceding allocation round, plus | 8 | | the amount of any credit recaptured or otherwise returned | 9 | | to the Authority since the previous allocation round; | 10 | | (3) of the $35,000,000 annual allocation: (i) 75.5% of | 11 | | the available credits in each allocation round shall be | 12 | | allocated by the Illinois Housing Development Authority, | 13 | | plus any credits the Illinois Housing Development | 14 | | Authority did not allocate from the previous allocation | 15 | | round, plus the amount of any credits recaptured or | 16 | | otherwise returned to the Illinois Housing Development | 17 | | Authority since the previous allocation round; and (ii) | 18 | | 24.5% of the available credits in each allocation round | 19 | | shall be allocated by the City of Chicago Department of | 20 | | Housing, plus any credits the City of Chicago Department | 21 | | of Housing did not allocate from the previous allocation | 22 | | round, plus the amount of any credits recaptured or | 23 | | otherwise returned to the City of Chicago Department of | 24 | | Housing since the previous allocation round; and | 25 | | (4) unless otherwise provided in this Act, or unless | 26 | | the context clearly requires otherwise, the Authority must |
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| 1 | | determine eligibility for credits and allocate credits in | 2 | | accordance with the standards and requirements set forth | 3 | | in Section 42 of the federal Internal Revenue Code of | 4 | | 1986. | 5 | | (c) For tax years during the credit period, any qualified | 6 | | taxpayer is allowed a credit as provided in this Act against | 7 | | any or all of the following: (i) the taxes imposed by | 8 | | subsections (a) and (b) of Section 201 of the Illinois Income | 9 | | Tax Act; or (ii) any privilege tax or retaliatory tax, | 10 | | penalty, fee, charge, or payment imposed under the Illinois | 11 | | Insurance Code. | 12 | | (d) If a taxpayer receiving an allocation of a credit is | 13 | | (i) a corporation that has an election in effect under | 14 | | Subchapter S of the federal Internal Revenue Code, (ii) a | 15 | | partnership, or (iii) a limited liability company, that is | 16 | | taxed as a partnership, the credit provided under this Act may | 17 | | be claimed by the shareholders of the corporation, the | 18 | | partners of the partnership, or the members of the limited | 19 | | liability company (as those terms are defined under applicable | 20 | | State law) in the same manner as those shareholders, partners, | 21 | | or members account for their proportionate shares of the | 22 | | income or losses of the corporation, partnership, or limited | 23 | | liability company, or as provided in the bylaws or other | 24 | | executed agreement of the corporation, partnership, or limited | 25 | | liability company. Credits granted to a partnership, a limited | 26 | | liability company taxed as a partnership, or other multiple |
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| 1 | | owners of property shall be passed through to the partners, | 2 | | members, or owners respectively on a pro rata basis or | 3 | | pursuant to an executed agreement among the partners, members, | 4 | | or owners documenting any alternative distribution method. A | 5 | | qualified taxpayer may claim a credit so long as its direct or | 6 | | indirect interest in the qualified development is acquired | 7 | | prior to the filing of its tax return claiming the credit. On | 8 | | or before February 28th following each year of the credit | 9 | | period, the owner must submit an allocation schedule | 10 | | certification in an electronic format prescribed by the | 11 | | Department and the Department of Insurance to the Department | 12 | | and the Department of Insurance detailing the amount of credit | 13 | | allocated to each qualified taxpayer for the applicable year | 14 | | and whether each qualified taxpayer intends to apply the | 15 | | credit to income tax or insurance premium tax, or the owner | 16 | | must notify the Department and the Department of Insurance | 17 | | that it has assigned the duty of the allocation schedule | 18 | | certification to its designee who must provide such allocation | 19 | | schedule certification to the Department and the Department of | 20 | | Insurance by the deadline. Such allocation schedule | 21 | | certification may be amended in the event the State credit | 22 | | eligibility statement for a project is received after the | 23 | | deadline for filing the allocation schedule certification. Any | 24 | | such amendment shall be filed prior to any taxpayer attempting | 25 | | to claim tax credits associated with the applicable State | 26 | | credit eligibility statement. Each qualified taxpayer is |
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| 1 | | allowed to claim its allocated amount of credit subject to any | 2 | | restrictions set forth in this Section. | 3 | | (e) No credit may be allocated pursuant to this Act unless | 4 | | the qualified development is the subject of a recorded | 5 | | restrictive covenant requiring the development to be | 6 | | maintained and operated as a qualified development; this | 7 | | requirement for a recorded restrictive covenant may be | 8 | | satisfied by the agreement for an extended low-income housing | 9 | | commitment required for the federal tax credits as defined in | 10 | | Section 42(h)(6)(B) of the federal Internal Revenue Code of | 11 | | 1986. | 12 | | (f) If, during a taxable year, there is a determination | 13 | | that no recorded restrictive covenant meeting the requirements | 14 | | of subsection (e) was in effect as of the beginning of that | 15 | | year, such determination shall not apply to any period before | 16 | | that year and subsection (e) shall be applied without regard | 17 | | to that determination if the failure is corrected within one | 18 | | year from the date of the determination. | 19 | | (g) The credit amount may be taken against the taxes | 20 | | imposed by the Illinois Income Tax Act for each taxable year of | 21 | | the credit period. The credit amount may be taken against the | 22 | | taxes, penalties, fees, charges, and payments imposed by the | 23 | | Illinois Insurance Code for each reporting period in the | 24 | | credit period. Any credit amount that exceeds the tax due for a | 25 | | taxable year may be carried forward as a tax credit against | 26 | | payments due for up to 5 taxable years following the tax year |
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| 1 | | to which the credit relates and must be applied first to the | 2 | | earliest reporting periods possible. Credits that are not | 3 | | claimed may not be refunded to the qualified taxpayer. | 4 | | (h) By January 15, 2022 and by January 15 of each year | 5 | | thereafter, the Authority shall provide to the Department and | 6 | | the Department of Insurance an electronic file containing all | 7 | | data related to all State credit eligibility statements issued | 8 | | during the preceding year in the manner and form as provided by | 9 | | the Department. | 10 | | Section 15. Recapture. If, under Section 42 of the | 11 | | Internal Revenue Code of 1986, a portion of any federal tax | 12 | | credit claimed with respect to a qualified development is | 13 | | required to be recaptured during the first 10 years after a | 14 | | project is placed in service, then the Authority shall provide | 15 | | written notice, upon a form created by the Authority, to the | 16 | | owner of the qualified development, the Department and the | 17 | | Department of Insurance of the amount to be recaptured and the | 18 | | event triggering recapture. The Authority shall provide such | 19 | | notice to the Department and Department of Insurance no | 20 | | earlier than 6 months after the event triggering recapture to | 21 | | allow the owner of the qualified development an opportunity to | 22 | | correct this event. The amount of credit subject to recapture | 23 | | shall be proportionately equal to the amount of the qualified | 24 | | development's federal tax credits which are subject to | 25 | | recapture. The Department or the Department of Insurance, as |
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| 1 | | applicable, shall notify the qualified taxpayer that claimed | 2 | | the credit of the amount recaptured, and the qualified | 3 | | taxpayer subject to recapture shall increase the qualified | 4 | | taxpayer's tax by the amount of any credit wrongfully claimed | 5 | | in the tax year the qualified taxpayer is notified of the | 6 | | recapture. If multiple taxpayers claimed credit with respect | 7 | | to the building for which credit is to be recaptured, each of | 8 | | those taxpayers shall be liable for a portion of the recapture | 9 | | equal to the percentages of credit with respect to the | 10 | | building originally claimed by the taxpayer. | 11 | | Section 20. Filing requirements. An owner of a qualified | 12 | | development that has received an allocation and each qualified | 13 | | taxpayer claiming any portion of the credit must file with | 14 | | their State tax returns a copy of the State credit eligibility | 15 | | statement issued by the Authority for that qualified | 16 | | development. A qualified taxpayer receiving an allocation of | 17 | | credit through a pass-through entity shall attach to its State | 18 | | tax return a copy of the Schedule K-1-P or other written | 19 | | statement from the pass-through entity stating the portion of | 20 | | the annual credit shown on the State credit eligibility | 21 | | statement that is allocated to that partner, member or | 22 | | shareholder for that taxable year. In addition, the owner of a | 23 | | qualified development or its designee shall file a copy of the | 24 | | allocation schedule certification prior to any tax return | 25 | | being filed claiming a State credit for such qualified |
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| 1 | | development. | 2 | | Section 25. Rules. The Illinois Housing Development | 3 | | Authority, the Department, and the Department of Insurance, in | 4 | | consultation with each other, shall adopt such rules as are | 5 | | necessary to carry out their respective responsibilities under | 6 | | this Act. | 7 | | Section 30. Compliance monitoring. The Authority, in | 8 | | consultation with the Department, shall monitor and oversee | 9 | | compliance with the provisions of this Act and shall report | 10 | | specific occurrences of noncompliance to the Department and | 11 | | the Department of Insurance. | 12 | | Section 35. Report to the General Assembly. | 13 | | (a) The Illinois Housing Development Authority and the | 14 | | Chicago Department of Housing must, by February 28 of each | 15 | | year following the annual allocation, provide a written report | 16 | | to the General Assembly and must publish that report on their | 17 | | websites. | 18 | | (b) The report shall: | 19 | | (1) set forth the number of qualified developments | 20 | | that have been allocated tax credits under this Act during | 21 | | the allocation year and the total number of units | 22 | | supported by each qualified development; | 23 | | (2) describe each qualified development that has been |
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| 1 | | allocated tax credits under this Act including, without | 2 | | limitation, the geographic location of the qualified | 3 | | development, the household type and any specific | 4 | | demographic information available about residents intended | 5 | | to be served by the qualified development, the income | 6 | | levels intended to be served by the qualified development, | 7 | | and the rents or set-asides authorized for each qualified | 8 | | development; | 9 | | (3) provide housing market and demographic information | 10 | | that demonstrates how the qualified developments supported | 11 | | by the tax credits are addressing the need for affordable | 12 | | housing within the communities they are intended to serve | 13 | | as well as information about any remaining disparities in | 14 | | the affordability of housing within those communities; and | 15 | | (4) provide information on the percentage of qualified | 16 | | developments allocated credits that received incentive | 17 | | scoring points in the qualified allocation plan as a | 18 | | result of the general contractor, property manager, | 19 | | architect, or sponsor being certified under the Business | 20 | | Enterprise Program for Minorities, Females, and Persons | 21 | | with a Disability.
| 22 | | Section 40. Exempt from automatic sunset. The credit under | 23 | | this Act is exempt from the provisions of Section 250 of the | 24 | | Illinois Income Tax Act. |
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| 1 | | Section 60. The Illinois Income Tax Act is amended by | 2 | | adding Section 232 as follows: | 3 | | (35 ILCS 5/232 new) | 4 | | Sec. 232. Build Illinois Homes Tax Credit Act. | 5 | | (a) For taxable years beginning on or after January 1, | 6 | | 2022, any eligible taxpayer with respect to a credit awarded | 7 | | in accordance with the Build Illinois Homes Tax Credit Act | 8 | | that is named, on or after January 1, 2021, on the allocation | 9 | | schedule certification for a particular tax year is entitled | 10 | | to a credit against the taxes imposed by subsections (a) and | 11 | | (b) of Section 201 as provided in the Build Illinois Homes Tax | 12 | | Credit Act. | 13 | | (b) The taxpayer shall attach a copy of the allocation | 14 | | schedule certification and the State credit eligibility | 15 | | certificate issued under the Build Illinois Homes Tax Credit | 16 | | Act to the tax return on which the credits are to be claimed. | 17 | | (c) If, during any taxable year, a taxpayer is notified of | 18 | | a recapture of a credit previously claimed on a State income | 19 | | tax return in accordance with the Build Illinois Homes Tax | 20 | | Credit Act, the tax imposed under subsections (a) and (b) of | 21 | | Section 201 for that taxpayer for that taxable year shall be | 22 | | increased. The amount of the increase shall be determined by | 23 | | (i) recomputing the Build Illinois Homes Tax Credit that would | 24 | | have been allowed for the year in which the credit was | 25 | | originally allowed by eliminating the recaptured amount from |
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| 1 | | such computation, and (ii) subtracting that recomputed credit | 2 | | from the amount of credit previously allowed. No Build | 3 | | Illinois Homes tax Credit shall be allowed with respect to any | 4 | | credit subject to a recapture notice for any taxable year | 5 | | ending after the issuance of a recapture notice. | 6 | | (d) This Section is exempt from the provisions of Section | 7 | | 250. | 8 | | Section 65. The Illinois Insurance Code is amended by | 9 | | changing Sections 409 and 444 as follows:
| 10 | | (215 ILCS 5/409) (from Ch. 73, par. 1021)
| 11 | | Sec. 409. Annual privilege tax payable by
companies. | 12 | | (1) As of January 1, 1999 for all health maintenance | 13 | | organization premiums
written; as of July 1, 1998 for all | 14 | | premiums written as accident and health
business, voluntary | 15 | | health service plan business, dental service plan business,
or | 16 | | limited health service organization business; and as of | 17 | | January 1, 1998
for all other types of insurance premiums | 18 | | written, every company doing any form
of insurance business in | 19 | | this
State, including, but not limited to, every risk | 20 | | retention group, and excluding
all fraternal benefit | 21 | | societies, all farm mutual companies, all religious
charitable | 22 | | risk pooling trusts, and excluding all statutory residual | 23 | | market and
special purpose entities in which companies are | 24 | | statutorily required to
participate, whether incorporated or |
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| 1 | | otherwise, shall pay, for the privilege of
doing business in | 2 | | this State, to the Director for the State treasury a State
tax | 3 | | equal to 0.5% of the net taxable premium written, together | 4 | | with any amounts
due under Section 444 of this Code, except | 5 | | that the tax to be paid on any
premium derived from any | 6 | | accident and health insurance or on any insurance
business | 7 | | written by any company operating as a health maintenance | 8 | | organization,
voluntary health service plan, dental service | 9 | | plan, or limited health service
organization shall be equal to | 10 | | 0.4% of such net taxable premium written,
together with any | 11 | | amounts due under Section 444. Upon the failure of any
company | 12 | | to pay any such tax due, the Director may, by order, revoke or
| 13 | | suspend the company's certificate of authority after giving 20 | 14 | | days written
notice to the company, or commence proceedings | 15 | | for the suspension of business
in this State under the | 16 | | procedures set forth by Section 401.1 of this Code.
The gross | 17 | | taxable premium written shall be the gross amount of premiums
| 18 | | received on direct business during the calendar year on | 19 | | contracts covering
risks in this State, except premiums on | 20 | | annuities, premiums on which State
premium taxes are | 21 | | prohibited by federal law, premiums paid by the State for
| 22 | | health care coverage for Medicaid eligible insureds as | 23 | | described in Section
5-2 of the Illinois Public Aid Code, | 24 | | premiums paid for health care services
included as an element | 25 | | of tuition charges at any university or college owned
and | 26 | | operated by the State of Illinois, premiums on group insurance |
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| 1 | | contracts
under the State Employees Group Insurance Act of | 2 | | 1971, and except premiums for
deferred compensation plans for | 3 | | employees of the State, units of local
government, or school | 4 | | districts. The net taxable premium shall be the gross
taxable | 5 | | premium written reduced only by the following:
| 6 | | (a) the amount of premiums returned thereon which | 7 | | shall be limited to
premiums returned during the same | 8 | | preceding calendar year and shall not include
the return | 9 | | of cash surrender values or death benefits on life | 10 | | policies
including annuities;
| 11 | | (b) dividends on such direct business that have been | 12 | | paid in cash, applied
in reduction of premiums or left to | 13 | | accumulate to the credit of policyholders
or annuitants. | 14 | | In the case of life insurance, no deduction shall be made | 15 | | for
the payment of deferred dividends paid in cash to | 16 | | policyholders on maturing
policies; dividends left to | 17 | | accumulate to the credit of policyholders or
annuitants | 18 | | shall be included as gross taxable premium written when | 19 | | such
dividend
accumulations are applied to purchase | 20 | | paid-up insurance or to shorten the
endowment or premium | 21 | | paying period.
| 22 | | (2) The annual privilege tax payment due from a company | 23 | | under subsection (4)
of
this Section may be reduced by: (a) the | 24 | | excess amount, if any, by which the
aggregate income taxes | 25 | | paid by the company, on a cash basis, for the preceding
| 26 | | calendar year under Sections 601 and 803 of the Illinois
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| 1 | | Income Tax Act exceed 1.5% of the company's net taxable | 2 | | premium written for
that prior calendar year, as determined | 3 | | under subsection (1) of this Section;
and (b) the amount of any | 4 | | fire department taxes paid by the company during the
preceding | 5 | | calendar year under Section 11-10-1 of the Illinois Municipal | 6 | | Code.
Any deductible amount or offset allowed under items (a) | 7 | | and (b) of this
subsection for any calendar year will not be | 8 | | allowed as a deduction or offset
against the company's | 9 | | privilege tax liability for any other taxing period or
| 10 | | calendar year.
| 11 | | (3) If a company survives or was formed by a merger, | 12 | | consolidation,
reorganization, or reincorporation, the | 13 | | premiums received and amounts returned
or paid by all | 14 | | companies party to the merger, consolidation, reorganization,
| 15 | | or reincorporation shall, for purposes of determining the | 16 | | amount of the tax
imposed by this Section, be regarded as | 17 | | received, returned, or paid by the
surviving
or new company.
| 18 | | (4)(a) All companies subject to the provisions of this | 19 | | Section shall make an
annual return for the preceding calendar | 20 | | year on or before March 15 setting
forth such information on | 21 | | such forms as the Director may reasonably require.
Payments of | 22 | | quarterly installments of the taxpayer's total estimated tax | 23 | | for
the current calendar year shall be due on or before April | 24 | | 15, June 15,
September 15, and December 15 of such year, except | 25 | | that all companies
transacting insurance in this State whose | 26 | | annual tax for the immediately
preceding calendar year was |
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| 1 | | less than $5,000 shall make only an annual return.
Failure of a | 2 | | company to make the annual payment, or to make the quarterly
| 3 | | payments, if required, of at least 25% of either (i) the total | 4 | | tax paid during
the
previous calendar year or (ii) 80% of the | 5 | | actual tax for the current calendar
year shall subject it to | 6 | | the penalty provisions set forth in Section 412 of
this Code.
| 7 | | (b) Notwithstanding the foregoing provisions, no annual | 8 | | return shall be
required or made on March 15, 1998, under this | 9 | | subsection. For the calendar
year 1998:
| 10 | | (i) each health maintenance organization shall have no | 11 | | estimated tax
installments;
| 12 | | (ii) all companies subject to the tax as of July 1, | 13 | | 1998 as
set forth in subsection (1) shall have estimated | 14 | | tax installments due on
September
15 and December 15 of | 15 | | 1998 which
installments shall each amount to no less than | 16 | | one-half of 80% of the actual
tax on its net taxable | 17 | | premium written during the period July 1, 1998, through
| 18 | | December 31, 1998; and
| 19 | | (iii) all other companies shall have estimated tax | 20 | | installments due on
June
15, September 15, and December 15 | 21 | | of 1998 which installments shall each
amount to no less | 22 | | than one-third of 80% of the actual tax on its net taxable
| 23 | | premium written during the calendar year 1998.
| 24 | | In the year 1999 and thereafter all companies shall make | 25 | | annual and
quarterly installments of their estimated tax as | 26 | | provided by paragraph (a) of
this subsection.
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| 1 | | (5) In addition to the authority specifically granted | 2 | | under Article XXV of
this Code, the Director shall have such | 3 | | authority to adopt rules and establish
forms as may be | 4 | | reasonably necessary
for purposes of determining the | 5 | | allocation of Illinois corporate income taxes
paid under | 6 | | subsections (a) through (d) of Section 201 of the Illinois | 7 | | Income
Tax Act amongst members of a business group that files | 8 | | an Illinois corporate
income tax return on a unitary basis, | 9 | | for purposes of regulating the amendment
of tax returns, for | 10 | | purposes of defining terms, and for purposes of enforcing
the | 11 | | provisions of
Article XXV of
this Code. The Director shall | 12 | | also have authority to defer, waive, or abate
the tax
imposed | 13 | | by this Section if in his opinion the company's solvency and | 14 | | ability to
meet its insured obligations would be immediately | 15 | | threatened by payment of the
tax due.
| 16 | | (6) This Section is subject to the provisions of Section | 17 | | 10 of the New Markets Development Program Act. | 18 | | (7) This Section is subject to the provisions of the Build | 19 | | Illinois Homes Tax Credit Act. For taxable years beginning on | 20 | | or after January 1, 2022, qualified taxpayers are entitled to | 21 | | claim credits awarded in accordance with the Build Illinois | 22 | | Homes Tax Credit Act on or after January 1, 2021 against the | 23 | | taxes imposed by this Section as provided in the Build | 24 | | Illinois Homes Tax Credit Act. Companies claiming a credit | 25 | | under the Build Illinois Homes Tax Credit Act are not required | 26 | | to pay any additional tax as a result of claiming the credit. |
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| 1 | | The credit may fully offset any amounts imposed under this | 2 | | Section. | 3 | | (Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)
| 4 | | (215 ILCS 5/444) (from Ch. 73, par. 1056)
| 5 | | Sec. 444. Retaliation.
| 6 | | (1) Whenever the existing or future laws of any other | 7 | | state or country
shall
require of companies incorporated or | 8 | | organized under the laws of this State
as a condition | 9 | | precedent to their doing business in such other state or
| 10 | | country, compliance with laws, rules, regulations, and | 11 | | prohibitions more
onerous or burdensome than the rules and | 12 | | regulations imposed by this State
on foreign or alien | 13 | | companies, or shall require any deposit of securities
or other | 14 | | obligations in such state or country, for the protection of
| 15 | | policyholders or otherwise or require of such companies or | 16 | | agents thereof
or brokers the payment of penalties, fees, | 17 | | charges, or taxes greater than
the penalties, fees, charges, | 18 | | or taxes required in the aggregate for like
purposes by this | 19 | | Code or any other law of this State, of foreign or alien
| 20 | | companies, agents thereof or brokers, then such laws, rules, | 21 | | regulations,
and prohibitions of said other state or country | 22 | | shall apply to companies
incorporated or organized under the | 23 | | laws of such state or country doing
business in this State, and | 24 | | all such companies, agents thereof, or brokers
doing business | 25 | | in this State, shall be required to make deposits, pay
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| 1 | | penalties, fees, charges, and taxes, in amounts equal to those | 2 | | required in
the aggregate for like purposes of Illinois | 3 | | companies doing business in
such state or country, agents | 4 | | thereof or brokers. Whenever any other state
or country shall | 5 | | refuse to permit any insurance company incorporated or
| 6 | | organized under the laws of this State to transact business | 7 | | according to
its usual plan in such other state or country, the | 8 | | director may, if
satisfied that such company of this State is | 9 | | solvent, properly managed, and
can operate legally under the | 10 | | laws of such other state or country,
forthwith suspend or | 11 | | cancel the license of every insurance company doing
business | 12 | | in this State which is incorporated or organized under the | 13 | | laws of
such other state or country to the extent that it | 14 | | insures in this State
against any of the risks or hazards which | 15 | | are sought to be insured against
by the company of this State | 16 | | in such other state or country.
| 17 | | (2) The provisions of this Section shall not apply to | 18 | | residual market
or special purpose assessments or guaranty | 19 | | fund or guaranty association
assessments, both under the laws | 20 | | of this State and under the laws of any other
state
or country, | 21 | | and any tax offset or credit for any such assessment shall, for
| 22 | | purposes of this Section, be treated as a tax paid both under | 23 | | the laws of this
State and under the laws of any other state or | 24 | | country.
| 25 | | (3) The terms "penalties", "fees", "charges", and "taxes" | 26 | | in subsection
(1) of this
Section
shall include: the |
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| 1 | | penalties, fees, charges, and taxes collected on a cash basis | 2 | | under State
law
and
referenced within Article XXV exclusive of | 3 | | any items referenced by
subsection
(2) of this Section, but | 4 | | including any tax offset allowed under Section 531.13
of this | 5 | | Code; the aggregate Illinois corporate income taxes paid under | 6 | | Sections 601 and 803
of the Illinois Income Tax Act during the | 7 | | calendar year for which the retaliatory tax calculation is | 8 | | being made, less the recapture of any Illinois corporate | 9 | | income tax cash refunds to the extent that the amount of tax | 10 | | refunded was reported as part of the Illinois basis in the | 11 | | calculation of the retaliatory tax for a prior tax year, | 12 | | provided that such recaptured refund shall not exceed the | 13 | | amount necessary for equivalence of the Illinois basis with | 14 | | the state of incorporation basis in such tax year, and after
| 15 | | any tax offset allowed under Section 531.13 of this Code;
| 16 | | income or personal property taxes imposed by other states or | 17 | | countries;
penalties, fees, charges, and taxes of other states
| 18 | | or countries imposed for purposes like those of the penalties, | 19 | | fees, charges,
and taxes
specified in Article XXV of this Code | 20 | | exclusive of any item referenced in
subsection (2) of this | 21 | | Section; and any penalties, fees, charges, and taxes
required | 22 | | as
a
franchise, privilege, or licensing tax for
conducting the | 23 | | business of insurance whether calculated as a percentage of
| 24 | | income, gross receipts, premium, or otherwise.
| 25 | | (4) Nothing contained in this Section or Section 409 or | 26 | | Section 444.1 is
intended to authorize or expand any power of |
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| 1 | | local governmental units or
municipalities to impose taxes, | 2 | | fees, or charges.
| 3 | | (5) This Section is subject to the provisions of Section | 4 | | 10 of the New Markets Development Program Act. | 5 | | (6) This Section is subject to the provisions of the Build | 6 | | Illinois Homes Tax Credit Act. For taxable years beginning on | 7 | | or after January 1, 2022, qualified taxpayers are entitled to | 8 | | claim credits awarded in accordance with the Build Illinois | 9 | | Homes Tax Credit Act on or after January 1, 2021 against the | 10 | | taxes imposed by this Section as provided in the Build | 11 | | Illinois Homes Tax Credit Act. Companies claiming a credit | 12 | | under the Build Illinois Homes Tax Credit Act are not required | 13 | | to pay any additional tax as a result of claiming the credit. | 14 | | The credit may fully offset any amounts imposed under this | 15 | | Section. | 16 | | (Source: P.A. 98-1169, eff. 1-9-15.)
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.".
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