Full Text of SB3233 103rd General Assembly
SB3233sam001 103RD GENERAL ASSEMBLY | Sen. Robert Peters Filed: 4/3/2024 | | 10300SB3233sam001 | | LRB103 38198 HLH 71351 a |
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| 1 | | AMENDMENT TO SENATE BILL 3233
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3233 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 schedule certification" means a certification | 9 | | issued by the owner of a qualified development, or by the | 10 | | owner's designee, under subsection (d) of Section 15 of this | 11 | | Act. The certification shall include the following: | 12 | | (1) the building identification number for each | 13 | | building included in the qualified development; | 14 | | (2) the calendar year in which the last building of | 15 | | the qualified development was placed in service; | 16 | | (3) the amount of the credit allowed for each year of |
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| 1 | | the credit period; | 2 | | (4) the amount of credit allocated to each qualified | 3 | | taxpayer for the qualified development for the applicable | 4 | | tax year; and | 5 | | (5) confirmation of whether each qualified taxpayer | 6 | | elects to apply the credit to income tax or insurance | 7 | | premium tax. | 8 | | "Authority" means: | 9 | | (1) the Illinois Housing Development Authority; or | 10 | | (2) the City of Chicago Department of Housing. | 11 | | "Building identification number" means the number assigned | 12 | | to a building within the qualified development by an Authority | 13 | | when allocating the federal tax credit. | 14 | | "Credit" means the credit allowed under this Act. | 15 | | "Credit period" means a period of 6 taxable years | 16 | | beginning with the taxable year in which a qualified | 17 | | development is placed in service. No credit period may include | 18 | | a taxable year beginning prior to January 1, 2025. If a | 19 | | qualified development consists of more than one building, then | 20 | | the qualified development is deemed to be placed in service in | 21 | | the taxable year in which the last building of the qualified | 22 | | development is placed in service. | 23 | | "Department" means the Department of Revenue. | 24 | | "Federal tax credit" means the federal low-income housing | 25 | | tax credit provided by Section 42 of the federal Internal | 26 | | Revenue Code, including federal low-income housing tax credits |
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| 1 | | issued under 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4). | 2 | | "Qualified basis" means the qualified basis of the | 3 | | qualified development as determined under Section 42 of the | 4 | | federal Internal Revenue Code of 1986. | 5 | | "Qualified development" means a qualified low-income | 6 | | housing project, as that term is defined in Section 42 of the | 7 | | federal Internal Revenue Code of 1986, that is located in the | 8 | | State and is determined to be eligible for the federal tax | 9 | | credit set forth in Section 42 of the Internal Revenue Code. | 10 | | "Qualified taxpayer" means an individual, person, firm, | 11 | | corporation, or other entity that owns a direct or indirect | 12 | | interest in a qualified development and that is subject to the | 13 | | taxes imposed by subsections (a) and (b) of Section 201 of the | 14 | | Illinois Income Tax Act or any privilege tax or retaliatory | 15 | | tax, penalty, fee, charge, or payment imposed by the Illinois | 16 | | Insurance Code. | 17 | | "Reservation letter" means a reservation letter issued by | 18 | | the Illinois Housing Development Authority or a reservation | 19 | | agreement issued by the City of Chicago Department of Housing. | 20 | | "State credit eligibility statement" means a statement | 21 | | issued by an Authority under Section 10 or documents submitted | 22 | | in satisfaction of a statement as allowed under Section 10. | 23 | | "State tax return" means the income tax return filed with | 24 | | the Department or the privilege and retaliatory tax return | 25 | | filed with the Department of Insurance, as applicable. |
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| 1 | | Section 10. State credit eligibility statements. Following | 2 | | construction or rehabilitation of the qualified development, | 3 | | the applicable Authority shall issue a State credit | 4 | | eligibility statement with respect to each building located in | 5 | | the qualified development certifying that the building | 6 | | qualifies for the credit under this Act and specifying: | 7 | | (1) the calendar year in which the last building of | 8 | | the qualified development was placed in service; | 9 | | (2) the amount of the credit allowed for each year of | 10 | | the credit period; | 11 | | (3) the maximum qualified basis of the qualified | 12 | | development taken into account in determining such annual | 13 | | credit amount; | 14 | | (4) a building identification number; and | 15 | | (5) that the qualified development is eligible for and | 16 | | has applied to receive a federal tax credit. | 17 | | The State credit eligibility statement shall be issued by | 18 | | an Authority simultaneously with IRS Form 8609. For taxable | 19 | | years beginning on or after January 1, 2025 and ending on or | 20 | | before December 31, 2025, an Authority may issue, and the | 21 | | Department and Department of Insurance may accept, an IRS Form | 22 | | 8609, including any additional statements attached to the IRS | 23 | | Form 8609, and the reservation letter issued by the Authority | 24 | | for the qualified development as the State credit eligibility | 25 | | statement in satisfaction of both federal requirements and the | 26 | | requirements set forth in this Section. |
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| 1 | | The State credit eligibility statement shall include a | 2 | | section to be completed by the owner of the qualified | 3 | | development annually for each year of the credit period | 4 | | certifying that the qualified development conforms with all | 5 | | compliance requirements, including all federal compliance | 6 | | requirements for the federal tax credit. The State credit | 7 | | eligibility statement shall be filed with the project owner's | 8 | | State tax return annually for each year of the credit period. | 9 | | Section 15. Credit for low-income housing developments. | 10 | | (a) An Authority shall administer the credit in accordance | 11 | | with the federal tax credit and shall award the credit | 12 | | simultaneously with the award of the federal tax credit. | 13 | | (a-5) For taxable years beginning on or after January 1, | 14 | | 2025 and beginning before January 1, 2030, an Authority may | 15 | | award a credit to the owner of a qualified development | 16 | | simultaneous with the federal tax credit in an amount | 17 | | determined by an Authority, subject to the following | 18 | | guidelines: | 19 | | (1) an Authority must find that the credit is | 20 | | necessary for the financial feasibility of the qualified | 21 | | development; | 22 | | (2) the aggregate amount of credits awarded to | 23 | | qualified developments for each calendar year shall not | 24 | | exceed $20,000,000, plus the amount of unallocated | 25 | | credits, if any, from the preceding calendar year, plus |
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| 1 | | the amount of any credit recaptured or otherwise returned | 2 | | to an Authority since the preceding calendar year; | 3 | | (3) of the $20,000,000 annual allocation: | 4 | | (A) 75.5% of the available credits for each | 5 | | calendar year shall be awarded by the Illinois Housing | 6 | | Development Authority, plus any credits the Illinois | 7 | | Housing Development Authority did not award from prior | 8 | | calendar years, plus the amount of any credits | 9 | | recaptured or otherwise returned to the Illinois | 10 | | Housing Development Authority from prior calendar | 11 | | years; and | 12 | | (B) 24.5% of the available credits in each | 13 | | calendar year shall be awarded by the City of Chicago | 14 | | Department of Housing, plus any credits the City of | 15 | | Chicago Department of Housing did not award from prior | 16 | | calendar years, plus the amount of any credits | 17 | | recaptured or otherwise returned to the City of | 18 | | Chicago Department of Housing since the prior calendar | 19 | | year; and | 20 | | (4) unless otherwise provided in this Act, or unless | 21 | | the context clearly requires otherwise, an Authority must | 22 | | determine eligibility for credits and award credits in | 23 | | accordance with the standards and requirements set forth | 24 | | in Section 42 of the federal Internal Revenue Code of 1986 | 25 | | and, to the extent possible, use the same forms that are | 26 | | used in administering the credit under Section 42 of the |
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| 1 | | federal Internal Revenue Code of 1986. | 2 | | (b) For tax years during the credit period, any qualified | 3 | | taxpayer is allowed a credit, as provided in this Act, against | 4 | | either of the following: (i) the taxes imposed by subsections | 5 | | (a) and (b) of Section 201 of the Illinois Income Tax Act; or | 6 | | (ii) any privilege tax or retaliatory tax, penalty, fee, | 7 | | charge, or payment imposed under the Illinois Insurance Code | 8 | | as provided in subsection (e-5). | 9 | | (b-5) The amount of credit awarded pursuant to a | 10 | | reservation letter shall be claimable in each year of the | 11 | | credit period. | 12 | | (c) A qualified taxpayer may claim a credit under this Act | 13 | | so long as the taxpayer's direct or indirect interest in the | 14 | | qualified development is acquired prior to the filing of its | 15 | | tax return claiming the credit. On or before March 31 | 16 | | following each year of the credit period, the owner must | 17 | | submit to the Department, the Department of Insurance, and the | 18 | | applicable Authority an allocation schedule certification, in | 19 | | an electronic format prescribed by the Department, the | 20 | | Department of Insurance, and the Authority, respectively, | 21 | | detailing the amount of the credit allocated to the qualified | 22 | | taxpayer for the applicable year and stating whether the | 23 | | qualified taxpayer has elected to claim the credit against the | 24 | | taxpayer's State income tax or insurance privilege tax or | 25 | | retaliatory tax liability. The taxpayer may assign to a | 26 | | designee the duty of preparing and submitting the allocation |
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| 1 | | schedule certification. In that case, the designee must | 2 | | provide the allocation schedule certification to the | 3 | | Department, the Department of Insurance, and the applicable | 4 | | Authority on or before the deadline for submission. The | 5 | | qualified taxpayer must notify the Department, the Department | 6 | | of Insurance, and the applicable Authority if it assigns that | 7 | | duty to its designee. | 8 | | The allocation schedule certification submitted under this | 9 | | Section may be amended if the State credit eligibility | 10 | | statement for a project is received after the deadline for | 11 | | filing the allocation schedule certification or if all credits | 12 | | have not been awarded by the deadline for filing the | 13 | | allocation schedule certification. Any amendment to an | 14 | | allocation schedule certification shall be filed before the | 15 | | taxpayer attempts to claim tax credits associated with the | 16 | | applicable State credit eligibility statement. Each qualified | 17 | | taxpayer is allowed to claim its awarded amount of credit | 18 | | subject to any restrictions set forth in this Section. If the | 19 | | credit is to be taken against the income tax and the qualified | 20 | | taxpayer is a pass-through entity, then the provisions of | 21 | | Section 251 of the Illinois Income Tax Act apply. | 22 | | (d) No credit may be awarded under this Act unless the | 23 | | qualified development is the subject of a recorded restrictive | 24 | | covenant requiring the development to be maintained and | 25 | | operated as a qualified development; this requirement for a | 26 | | recorded restrictive covenant may be satisfied by the |
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| 1 | | agreement for an extended low-income housing commitment | 2 | | required for the federal tax credits as defined in Section | 3 | | 42(h)(6)(B) of the federal Internal Revenue Code of 1986. | 4 | | (e) If, during a taxable year, there is a determination | 5 | | that no recorded restrictive covenant meeting the requirements | 6 | | of subsection (d) was in effect as of the beginning of that | 7 | | year, the determination shall not apply to any period before | 8 | | that year and subsection (e) shall be applied without regard | 9 | | to that determination if the failure is corrected within one | 10 | | year after the date of the determination. | 11 | | (e-5) For tax years ending during the credit period, any | 12 | | qualified taxpayer is allowed a credit as provided in this Act | 13 | | against the taxes imposed by subsections (a) and (b) of | 14 | | Section 201 of the Illinois Income Tax Act, unless the | 15 | | qualified taxpayer elects to claim the credit against any | 16 | | privilege tax or retaliatory tax, penalty, fee, charge, or | 17 | | payment imposed under the Illinois Insurance Code. Those | 18 | | elections shall be submitted by the owner of the qualified | 19 | | development in the annual allocation schedule certification as | 20 | | provided in subsection (c) of this Section. | 21 | | (f) The tax credit under this Act may not reduce the | 22 | | taxpayer's liability to less than zero. If the amount of the | 23 | | tax credit exceeds the tax liability for the year, the excess | 24 | | may be carried forward and applied to the tax liability of the | 25 | | 5 taxable years following the excess credit year. The credit | 26 | | must be applied to the earliest year for which there is a tax |
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| 1 | | liability. If there are credits from more than one tax year | 2 | | that are available to offset a liability, then the earlier | 3 | | credit must be applied first. Credits that are initially | 4 | | claimed against taxes imposed by the Illinois Income Tax Act | 5 | | may be carried forward only against the taxpayer's future | 6 | | Illinois Income Tax liability. Credits that are initially | 7 | | claimed against taxes, penalties, fees, charges, and payments | 8 | | imposed by the Illinois Insurance Code may be carried forward | 9 | | only against taxes, penalties, fees, charges, and payments | 10 | | imposed by the Illinois Insurance Code. Credits that are not | 11 | | claimed or carried forward may not be refunded to the | 12 | | taxpayer. The qualified taxpayer is solely responsible for | 13 | | correctly filing tax returns, and an Authority is not | 14 | | responsible for monitoring the calculation of taxes under this | 15 | | Section. | 16 | | (g) By March 31, 2025 and by March 31 of each year | 17 | | thereafter, each Authority shall provide to the Department and | 18 | | the Department of Insurance an electronic file containing all | 19 | | data related to all State credit eligibility statements issued | 20 | | during the preceding year in the manner and form as provided by | 21 | | each respective Department. | 22 | | (h) Each Authority is entitled to a reservation fee of 1% | 23 | | of the credit awarded under this Section for each year of the | 24 | | award to support the cost of compliance monitoring. An | 25 | | Authority may exercise the option to impose a compliance fee | 26 | | or a penalty in the exercise of its compliance monitoring |
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| 1 | | function under this Act. | 2 | | Section 20. Recapture. If, under Section 42 of the | 3 | | Internal Revenue Code, a portion of any federal tax credit | 4 | | claimed with respect to a qualified development for which a | 5 | | credit has been awarded under this Act is required by a final | 6 | | determination by the Internal Revenue Service or a court of | 7 | | law with competent jurisdiction to be recaptured during the | 8 | | first 6 years after a project is placed in service, then, | 9 | | within 60 days after becoming aware of the federal tax credit | 10 | | recapture, the project owner shall provide the Department, the | 11 | | Department of Insurance, and the applicable Authority with | 12 | | notice of the federal tax credit recapture. Notice shall be | 13 | | provided in the manner and form as provided by the Department, | 14 | | the Department of Insurance, and the Authority, respectively. | 15 | | If an Authority issues a federal Form 8823 to the owner of a | 16 | | qualified development that has been awarded a credit under | 17 | | this Act, and an Authority has not been notified within 6 | 18 | | months of filing the Form 8823 that the noncompliance has been | 19 | | remedied, an Authority shall submit the Form 8823 to the | 20 | | Department or Department of Insurance, as applicable. The | 21 | | amount of credit subject to recapture shall be proportionately | 22 | | equal to the amount of the qualified development's federal tax | 23 | | credits that are subject to recapture. If the project owner | 24 | | (or one of the project owner's direct or indirect members) | 25 | | fails to notify the Department or the Department of Insurance, |
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| 1 | | as applicable, of any final determination of recapture of the | 2 | | federal tax credit, then the entire amount of the State tax | 3 | | credit awarded for the qualified development may be subject to | 4 | | recapture. The qualified taxpayer subject to recapture shall | 5 | | increase the qualified taxpayer's tax by the amount of any | 6 | | credit subject to recapture in the tax year the qualified | 7 | | taxpayer is notified of the recapture. If multiple taxpayers | 8 | | claimed credit with respect to the building for which credit | 9 | | is to be recaptured, each of those taxpayers shall be liable | 10 | | for a portion of the recapture equal to the percentages of | 11 | | credit with respect to the building originally claimed by the | 12 | | taxpayer. | 13 | | Section 25. Filing requirements. An owner of a qualified | 14 | | development that has been awarded a credit and each qualified | 15 | | taxpayer claiming any portion of the credit must file with | 16 | | their State tax returns a copy of the State credit eligibility | 17 | | statement issued by an Authority for that qualified | 18 | | development. In addition, the owner of a qualified development | 19 | | or its designee shall file a copy of the allocation schedule | 20 | | certification and reservation letter prior to any tax return | 21 | | being filed claiming a State credit for such qualified | 22 | | development. A qualified taxpayer receiving any allocated | 23 | | portion of a credit through a pass-through entity shall attach | 24 | | to its State tax return a copy of the Schedule K-1-P for that | 25 | | taxable year. |
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| 1 | | Section 30. Compliance monitoring. An Authority, in | 2 | | consultation with the Department and Department of Insurance, | 3 | | shall monitor and oversee compliance with the provisions of | 4 | | this Act and shall report specific occurrences of | 5 | | noncompliance to the Department and the Department of | 6 | | Insurance in the manner and form as provided by the Department | 7 | | and the Department of Insurance. An Authority shall make every | 8 | | effort to monitor and report noncompliance using the same | 9 | | procedures used for compliance monitoring of the federal tax | 10 | | credits. | 11 | | Section 35. Report to the General Assembly. | 12 | | (a) Each Authority must, by March 31, 2026 and by March 31 | 13 | | of each year thereafter, provide a written report to the | 14 | | General Assembly and must publish that report on its website. | 15 | | (b) The report shall: | 16 | | (1) set forth the number of qualified developments | 17 | | that have been awarded tax credits under this Act during | 18 | | the calendar year and the total number of units supported | 19 | | by each qualified development; | 20 | | (2) describe each qualified development that has been | 21 | | awarded tax credits under this Act, including, without | 22 | | limitation, the geographic location of the qualified | 23 | | development, the household type, the income levels | 24 | | intended to be served by the qualified development, and |
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| 1 | | the rents or set-asides authorized for each qualified | 2 | | development; | 3 | | (3) provide housing market information that | 4 | | demonstrates how the qualified developments supported by | 5 | | the tax credits are addressing the need for affordable | 6 | | housing within the communities they are intended to serve | 7 | | as well as information about any remaining disparities in | 8 | | the affordability of housing within those communities; and | 9 | | (4) provide information about the percentage of | 10 | | qualified developments that were awarded credits and that | 11 | | received incentive scoring points as a result of the | 12 | | general contractor, property manager, architect, or | 13 | | sponsor being certified under the Business Enterprise | 14 | | Program for Minorities, Females, and Persons with a | 15 | | Disability. | 16 | | Section 900. The Illinois Income Tax Act is amended by | 17 | | adding Section 241 as follows: | 18 | | (35 ILCS 5/241 new) | 19 | | Sec. 241. Build Illinois Homes Tax Credit Act. | 20 | | (a) For taxable years beginning on or after January 1, | 21 | | 2025 and until the expiration of the program under the Build | 22 | | Illinois Homes Tax Credit Act, any eligible taxpayer with | 23 | | respect to a credit awarded in accordance with the Build | 24 | | Illinois Homes Tax Credit Act that is named on an allocation |
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| 1 | | schedule certification for a particular tax year is entitled | 2 | | to a credit against the taxes imposed by subsections (a) and | 3 | | (b) of Section 201 as provided in the Build Illinois Homes Tax | 4 | | Credit Act. | 5 | | (b) The taxpayer shall attach a copy of the allocation | 6 | | schedule certification and the State credit eligibility | 7 | | certificate issued under the Build Illinois Homes Tax Credit | 8 | | Act to the tax return on which the credits are to be claimed. | 9 | | (c) If, during any taxable year, a taxpayer is notified of | 10 | | a final determination that a credit previously claimed on a | 11 | | State income tax return in accordance with 42 U.S.C. 42 has | 12 | | been recaptured, the tax imposed under subsections (a) and (b) | 13 | | of Section 201 for that taxpayer for that taxable year shall be | 14 | | increased. The amount of the increase shall be determined by | 15 | | (i) recomputing the Build Illinois Homes Tax Credit that would | 16 | | have been allowed for the year in which the credit was | 17 | | originally allowed by eliminating the recaptured amount from | 18 | | such computation, and (ii) subtracting that recomputed credit | 19 | | from the amount of credit previously allowed. No Build | 20 | | Illinois Homes Tax Credit shall be allowed with respect to any | 21 | | credit subject to a final determination of recapture for any | 22 | | taxable year ending after the issuance of a recapture notice. | 23 | | Section 905. The Illinois Insurance Code is amended by | 24 | | changing Sections 409 and 444 as follows: |
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| 1 | | (215 ILCS 5/409) (from Ch. 73, par. 1021) | 2 | | Sec. 409. Annual privilege tax payable by companies. | 3 | | (1) As of January 1, 1999 for all health maintenance | 4 | | organization premiums written; as of July 1, 1998 for all | 5 | | premiums written as accident and health business, voluntary | 6 | | health service plan business, dental service plan business, or | 7 | | limited health service organization business; and as of | 8 | | January 1, 1998 for all other types of insurance premiums | 9 | | written, every company doing any form of insurance business in | 10 | | this State, including, but not limited to, every risk | 11 | | retention group, and excluding all fraternal benefit | 12 | | societies, all farm mutual companies, all religious charitable | 13 | | risk pooling trusts, and excluding all statutory residual | 14 | | market and special purpose entities in which companies are | 15 | | statutorily required to participate, whether incorporated or | 16 | | otherwise, shall pay, for the privilege of doing business in | 17 | | this State, to the Director for the State treasury a State tax | 18 | | equal to 0.5% of the net taxable premium written, together | 19 | | with any amounts due under Section 444 of this Code, except | 20 | | that the tax to be paid on any premium derived from any | 21 | | accident and health insurance or on any insurance business | 22 | | written by any company operating as a health maintenance | 23 | | organization, voluntary health service plan, dental service | 24 | | plan, or limited health service organization shall be equal to | 25 | | 0.4% of such net taxable premium written, together with any | 26 | | amounts due under Section 444. Upon the failure of any company |
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| 1 | | to pay any such tax due, the Director may, by order, revoke or | 2 | | suspend the company's certificate of authority after giving 20 | 3 | | days written notice to the company, or commence proceedings | 4 | | for the suspension of business in this State under the | 5 | | procedures set forth by Section 401.1 of this Code. The gross | 6 | | taxable premium written shall be the gross amount of premiums | 7 | | received on direct business during the calendar year on | 8 | | contracts covering risks in this State, except premiums on | 9 | | annuities, premiums on which State premium taxes are | 10 | | prohibited by federal law, premiums paid by the State for | 11 | | health care coverage for Medicaid eligible insureds as | 12 | | described in Section 5-2 of the Illinois Public Aid Code, | 13 | | premiums paid for health care services included as an element | 14 | | of tuition charges at any university or college owned and | 15 | | operated by the State of Illinois, premiums on group insurance | 16 | | contracts under the State Employees Group Insurance Act of | 17 | | 1971, and except premiums for deferred compensation plans for | 18 | | employees of the State, units of local government, or school | 19 | | districts. The net taxable premium shall be the gross taxable | 20 | | premium written reduced only by the following: | 21 | | (a) the amount of premiums returned thereon which | 22 | | shall be limited to premiums returned during the same | 23 | | preceding calendar year and shall not include the return | 24 | | of cash surrender values or death benefits on life | 25 | | policies including annuities; | 26 | | (b) dividends on such direct business that have been |
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| 1 | | paid in cash, applied in reduction of premiums or left to | 2 | | accumulate to the credit of policyholders or annuitants. | 3 | | In the case of life insurance, no deduction shall be made | 4 | | for the payment of deferred dividends paid in cash to | 5 | | policyholders on maturing policies; dividends left to | 6 | | accumulate to the credit of policyholders or annuitants | 7 | | shall be included as gross taxable premium written when | 8 | | such dividend accumulations are applied to purchase | 9 | | paid-up insurance or to shorten the endowment or premium | 10 | | paying period. | 11 | | (2) The annual privilege tax payment due from a company | 12 | | under subsection (4) of this Section may be reduced by: (a) the | 13 | | excess amount, if any, by which the aggregate income taxes | 14 | | paid by the company, on a cash basis, for the preceding | 15 | | calendar year under Sections 601 and 803 of the Illinois | 16 | | Income Tax Act exceed 1.5% of the company's net taxable | 17 | | premium written for that prior calendar year, as determined | 18 | | under subsection (1) of this Section; and (b) the amount of any | 19 | | fire department taxes paid by the company during the preceding | 20 | | calendar year under Section 11-10-1 of the Illinois Municipal | 21 | | Code. Any deductible amount or offset allowed under items (a) | 22 | | and (b) of this subsection for any calendar year will not be | 23 | | allowed as a deduction or offset against the company's | 24 | | privilege tax liability for any other taxing period or | 25 | | calendar year. | 26 | | (3) If a company survives or was formed by a merger, |
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| 1 | | consolidation, reorganization, or reincorporation, the | 2 | | premiums received and amounts returned or paid by all | 3 | | companies party to the merger, consolidation, reorganization, | 4 | | or reincorporation shall, for purposes of determining the | 5 | | amount of the tax imposed by this Section, be regarded as | 6 | | received, returned, or paid by the surviving or new company. | 7 | | (4)(a) All companies subject to the provisions of this | 8 | | Section shall make an annual return for the preceding calendar | 9 | | year on or before March 15 setting forth such information on | 10 | | such forms as the Director may reasonably require. Payments of | 11 | | quarterly installments of the taxpayer's total estimated tax | 12 | | for the current calendar year shall be due on or before April | 13 | | 15, June 15, September 15, and December 15 of such year, except | 14 | | that all companies transacting insurance in this State whose | 15 | | annual tax for the immediately preceding calendar year was | 16 | | less than $5,000 shall make only an annual return. Failure of a | 17 | | company to make the annual payment, or to make the quarterly | 18 | | payments, if required, of at least 25% of either (i) the total | 19 | | tax paid during the previous calendar year or (ii) 80% of the | 20 | | actual tax for the current calendar year shall subject it to | 21 | | the penalty provisions set forth in Section 412 of this Code. | 22 | | (b) Notwithstanding the foregoing provisions, no annual | 23 | | return shall be required or made on March 15, 1998, under this | 24 | | subsection. For the calendar year 1998: | 25 | | (i) each health maintenance organization shall have no | 26 | | estimated tax installments; |
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| 1 | | (ii) all companies subject to the tax as of July 1, | 2 | | 1998 as set forth in subsection (1) shall have estimated | 3 | | tax installments due on September 15 and December 15 of | 4 | | 1998 which installments shall each amount to no less than | 5 | | one-half of 80% of the actual tax on its net taxable | 6 | | premium written during the period July 1, 1998, through | 7 | | December 31, 1998; and | 8 | | (iii) all other companies shall have estimated tax | 9 | | installments due on June 15, September 15, and December 15 | 10 | | of 1998 which installments shall each amount to no less | 11 | | than one-third of 80% of the actual tax on its net taxable | 12 | | premium written during the calendar year 1998. | 13 | | In the year 1999 and thereafter all companies shall make | 14 | | annual and quarterly installments of their estimated tax as | 15 | | provided by paragraph (a) of this subsection. | 16 | | (5) In addition to the authority specifically granted | 17 | | under Article XXV of this Code, the Director shall have such | 18 | | authority to adopt rules and establish forms as may be | 19 | | reasonably necessary for purposes of determining the | 20 | | allocation of Illinois corporate income taxes paid under | 21 | | subsections (a) through (d) of Section 201 of the Illinois | 22 | | Income Tax Act amongst members of a business group that files | 23 | | an Illinois corporate income tax return on a unitary basis, | 24 | | for purposes of regulating the amendment of tax returns, for | 25 | | purposes of defining terms, and for purposes of enforcing the | 26 | | provisions of Article XXV of this Code. The Director shall |
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| 1 | | also have authority to defer, waive, or abate the tax imposed | 2 | | by this Section if in his opinion the company's solvency and | 3 | | ability to meet its insured obligations would be immediately | 4 | | threatened by payment of the tax due. | 5 | | (6) This Section is subject to the provisions of Section | 6 | | 10 of the New Markets Development Program Act. | 7 | | (7) This Section is subject to the provisions of the Build | 8 | | Illinois Homes Tax Credit Act. | 9 | | (Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.) | 10 | | (215 ILCS 5/444) (from Ch. 73, par. 1056) | 11 | | Sec. 444. Retaliation. | 12 | | (1) Whenever the existing or future laws of any other | 13 | | state or country shall require of companies incorporated or | 14 | | organized under the laws of this State as a condition | 15 | | precedent to their doing business in such other state or | 16 | | country, compliance with laws, rules, regulations, and | 17 | | prohibitions more onerous or burdensome than the rules and | 18 | | regulations imposed by this State on foreign or alien | 19 | | companies, or shall require any deposit of securities or other | 20 | | obligations in such state or country, for the protection of | 21 | | policyholders or otherwise or require of such companies or | 22 | | agents thereof or brokers the payment of penalties, fees, | 23 | | charges, or taxes greater than the penalties, fees, charges, | 24 | | or taxes required in the aggregate for like purposes by this | 25 | | Code or any other law of this State, of foreign or alien |
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| 1 | | companies, agents thereof or brokers, then such laws, rules, | 2 | | regulations, and prohibitions of said other state or country | 3 | | shall apply to companies incorporated or organized under the | 4 | | laws of such state or country doing business in this State, and | 5 | | all such companies, agents thereof, or brokers doing business | 6 | | in this State, shall be required to make deposits, pay | 7 | | penalties, fees, charges, and taxes, in amounts equal to those | 8 | | required in the aggregate for like purposes of Illinois | 9 | | companies doing business in such state or country, agents | 10 | | thereof or brokers. Whenever any other state or country shall | 11 | | refuse to permit any insurance company incorporated or | 12 | | organized under the laws of this State to transact business | 13 | | according to its usual plan in such other state or country, the | 14 | | director may, if satisfied that such company of this State is | 15 | | solvent, properly managed, and can operate legally under the | 16 | | laws of such other state or country, forthwith suspend or | 17 | | cancel the license of every insurance company doing business | 18 | | in this State which is incorporated or organized under the | 19 | | laws of such other state or country to the extent that it | 20 | | insures in this State against any of the risks or hazards which | 21 | | are sought to be insured against by the company of this State | 22 | | in such other state or country. | 23 | | (2) The provisions of this Section shall not apply to | 24 | | residual market or special purpose assessments or guaranty | 25 | | fund or guaranty association assessments, both under the laws | 26 | | of this State and under the laws of any other state or country, |
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| 1 | | and any tax offset or credit for any such assessment shall, for | 2 | | purposes of this Section, be treated as a tax paid both under | 3 | | the laws of this State and under the laws of any other state or | 4 | | country. | 5 | | (3) The terms "penalties", "fees", "charges", and "taxes" | 6 | | in subsection (1) of this Section shall include: the | 7 | | penalties, fees, charges, and taxes collected on a cash basis | 8 | | under State law and referenced within Article XXV exclusive of | 9 | | any items referenced by subsection (2) of this Section, but | 10 | | including any tax offset allowed under Section 531.13 of this | 11 | | Code; the aggregate Illinois corporate income taxes paid under | 12 | | Sections 601 and 803 of the Illinois Income Tax Act during the | 13 | | calendar year for which the retaliatory tax calculation is | 14 | | being made, less the recapture of any Illinois corporate | 15 | | income tax cash refunds to the extent that the amount of tax | 16 | | refunded was reported as part of the Illinois basis in the | 17 | | calculation of the retaliatory tax for a prior tax year, | 18 | | provided that such recaptured refund shall not exceed the | 19 | | amount necessary for equivalence of the Illinois basis with | 20 | | the state of incorporation basis in such tax year, and after | 21 | | any tax offset allowed under Section 531.13 of this Code; | 22 | | income or personal property taxes imposed by other states or | 23 | | countries; penalties, fees, charges, and taxes of other states | 24 | | or countries imposed for purposes like those of the penalties, | 25 | | fees, charges, and taxes specified in Article XXV of this Code | 26 | | exclusive of any item referenced in subsection (2) of this |
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| 1 | | Section; and any penalties, fees, charges, and taxes required | 2 | | as a franchise, privilege, or licensing tax for conducting the | 3 | | business of insurance whether calculated as a percentage of | 4 | | income, gross receipts, premium, or otherwise. | 5 | | (4) Nothing contained in this Section or Section 409 or | 6 | | Section 444.1 is intended to authorize or expand any power of | 7 | | local governmental units or municipalities to impose taxes, | 8 | | fees, or charges. | 9 | | (5) This Section is subject to the provisions of Section | 10 | | 10 of the New Markets Development Program Act. | 11 | | (6) This Section is subject to the provisions of the Build | 12 | | Illinois Homes Tax Credit Act. | 13 | | (Source: P.A. 98-1169, eff. 1-9-15.) | 14 | | Section 999. Effective date. This Act takes effect upon | 15 | | becoming law.". |
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