Full Text of SB2239 97th General Assembly
SB2239 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2239 Introduced 2/10/2011, by Sen. Matt Murphy SYNOPSIS AS INTRODUCED: |
| 15 ILCS 305/5 | from Ch. 124, par. 5 | 35 ILCS 5/201 | from Ch. 120, par. 2-201 | 35 ILCS 5/207 | from Ch. 120, par. 2-207 | 35 ILCS 5/804 | from Ch. 120, par. 8-804 | 35 ILCS 5/901 | from Ch. 120, par. 9-901 | 35 ILCS 405/2 | from Ch. 120, par. 405A-2 | 30 ILCS 5/3-20 rep. | | 30 ILCS 105/5.787 rep. | | 30 ILCS 105/6z-85 rep. | | 30 ILCS 105/6z-86 rep. | | 30 ILCS 105/25.2 rep. | | 35 ILCS 5/202.5 rep. | |
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Amends the Illinois Income Tax Act. Reduces the rate of tax imposed by Public Act 96-1496 to 3% for individuals, trusts, and estates and 4.8% for corporations (the rates in effect immediately prior to the effective date of Public Act 96-1496). Provides that the amendatory Act supersedes Public Act 96-1496 and that the rates shall be deemed to be 3% for individuals, trusts, and estates and 4.8% for corporations for the entire period beginning on the effective date of Public Act 96-1496 through the effective date of the amendatory Act and thereafter. Makes corresponding changes concerning the distribution of tax proceeds. Amends the Illinois Estate and Generation-Skipping Transfer Tax Act to reverse certain changes made by Public Act 96-1496. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Secretary of State Act is amended by | 5 | | changing Section 5 as follows:
| 6 | | (15 ILCS 305/5) (from Ch. 124, par. 5)
| 7 | | Sec. 5. It shall be the duty of the Secretary of State:
| 8 | | 1. To countersign and affix the seal of state to all | 9 | | commissions
required by law to be issued by the Governor.
| 10 | | 2. To make a register of all appointments by the Governor, | 11 | | specifying
the person appointed, the office conferred, the date | 12 | | of the appointment,
the date when bond or oath is taken and the | 13 | | date filed. If Senate
confirmation is required, the date of the | 14 | | confirmation shall be included
in the register.
| 15 | | 3. To make proper indexes to public acts, resolutions, | 16 | | papers and
documents in his office.
| 17 | | 3-a. To review all rules of all State agencies adopted in | 18 | | compliance
with the
codification system prescribed by the | 19 | | Secretary. The review shall be for the
purposes and include all | 20 | | the powers and duties provided in the Illinois
Administrative | 21 | | Procedure Act. The Secretary of State shall cooperate with the
| 22 | | Legislative Information System to insure the accuracy of the | 23 | | text of the rules
maintained under the Legislative Information |
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| 1 | | System Act.
| 2 | | 4. To give any person requiring the same paying the lawful | 3 | | fees
therefor, a copy of any law, act, resolution, record or | 4 | | paper in his
office, and attach thereto his certificate, under | 5 | | the seal of the state.
| 6 | | 5. To take charge of and preserve from waste, and keep in | 7 | | repair,
the houses, lots, grounds and appurtenances, situated | 8 | | in the City of
Springfield, and belonging to or occupied by the | 9 | | State, the care of
which is not otherwise provided for by law, | 10 | | and to take charge of and
preserve from waste, and keep in | 11 | | repair, the houses, lots, grounds and
appurtenances, situated | 12 | | in the State outside the City of Springfield
where such houses, | 13 | | lots, grounds and appurtenances are occupied by the
Secretary | 14 | | of State and no other State officer or agency.
| 15 | | 6. To supervise the distribution of the laws.
| 16 | | 7. To perform such other duties as may be required by law. | 17 | | The
Secretary of State may, within appropriations authorized by | 18 | | the General
Assembly, maintain offices in the State Capital and | 19 | | in such other places
in the State as he may deem necessary to | 20 | | properly carry out the powers
and duties vested in him by law.
| 21 | | 8. In addition to all other authority granted to the | 22 | | Secretary by law, subject to appropriation, to make grants or | 23 | | otherwise provide assistance to, among others without | 24 | | limitation, units of local government, school districts, | 25 | | educational institutions, private agencies, not-for-profit | 26 | | organizations, and for-profit entities for the health, safety, |
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| 1 | | and welfare of Illinois residents for purposes related to | 2 | | education, transportation, construction, capital improvements, | 3 | | social services, and any other lawful public purpose. Upon | 4 | | request of the Secretary, all State agencies are mandated to | 5 | | provide the Secretary with assistance in administering the | 6 | | grants. | 7 | | 9. To notify the Auditor General of any Public Act filed | 8 | | with the Office of the Secretary of State making an | 9 | | appropriation or transfer of funds from the State treasury. | 10 | | This paragraph (9) applies only through June 30, 2015. | 11 | | (Source: P.A. 96-37, eff. 7-13-09; 96-1496, eff. 1-13-11.)
| 12 | | Section 10. The Illinois Income Tax Act is amended by | 13 | | changing Sections 201, 207, 804, and 901 as follows: | 14 | | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | 15 | | Sec. 201. Tax Imposed. | 16 | | (a) In general. A tax measured by net income is hereby | 17 | | imposed on every
individual, corporation, trust and estate for | 18 | | each taxable year ending
after July 31, 1969 on the privilege | 19 | | of earning or receiving income in or
as a resident of this | 20 | | State. Such tax shall be in addition to all other
occupation or | 21 | | privilege taxes imposed by this State or by any municipal
| 22 | | corporation or political subdivision thereof. | 23 | | (b) Rates. The tax imposed by subsection (a) of this | 24 | | Section shall be
determined as follows, except as adjusted by |
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| 1 | | subsection (d-1): | 2 | | (1) In the case of an individual, trust or estate, for | 3 | | taxable years
ending prior to July 1, 1989, an amount equal | 4 | | to 2 1/2% of the taxpayer's
net income for the taxable | 5 | | year. | 6 | | (2) In the case of an individual, trust or estate, for | 7 | | taxable years
beginning prior to July 1, 1989 and ending | 8 | | after June 30, 1989, an amount
equal to the sum of (i) 2 | 9 | | 1/2% of the taxpayer's net income for the period
prior to | 10 | | July 1, 1989, as calculated under Section 202.3, and (ii) | 11 | | 3% of the
taxpayer's net income for the period after June | 12 | | 30, 1989, as calculated
under Section 202.3. | 13 | | (3) In the case of an individual, trust or estate, for | 14 | | taxable years
beginning after June 30, 1989, and ending | 15 | | prior to January 1, 2011, an amount equal to 3% of the | 16 | | taxpayer's net
income for the taxable year. | 17 | | (4) (Blank). In the case of an individual, trust, or | 18 | | estate, for taxable years beginning prior to January 1, | 19 | | 2011, and ending after December 31, 2010, an amount equal | 20 | | to the sum of (i) 3% of the taxpayer's net income for the | 21 | | period prior to January 1, 2011, as calculated under | 22 | | Section 202.5, and (ii) 5% of the taxpayer's net income for | 23 | | the period after December 31, 2010, as calculated under | 24 | | Section 202.5. | 25 | | (5) (Blank). In the case of an individual, trust, or | 26 | | estate, for taxable years beginning on or after January 1, |
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| 1 | | 2011, and ending prior to January 1, 2015, an amount equal | 2 | | to 5% of the taxpayer's net income for the taxable year. | 3 | | (5.1) (Blank). In the case of an individual, trust, or | 4 | | estate, for taxable years beginning prior to January 1, | 5 | | 2015, and ending after December 31, 2014, an amount equal | 6 | | to the sum of (i) 5% of the taxpayer's net income for the | 7 | | period prior to January 1, 2015, as calculated under | 8 | | Section 202.5, and (ii) 3.75% of the taxpayer's net income | 9 | | for the period after December 31, 2014, as calculated under | 10 | | Section 202.5. | 11 | | (5.2) (Blank). In the case of an individual, trust, or | 12 | | estate, for taxable years beginning on or after January 1, | 13 | | 2015, and ending prior to January 1, 2025, an amount equal | 14 | | to 3.75% of the taxpayer's net income for the taxable year. | 15 | | (5.3) (Blank). In the case of an individual, trust, or | 16 | | estate, for taxable years beginning prior to January 1, | 17 | | 2025, and ending after December 31, 2024, an amount equal | 18 | | to the sum of (i) 3.75% of the taxpayer's net income for | 19 | | the period prior to January 1, 2025, as calculated under | 20 | | Section 202.5, and (ii) 3.25% of the taxpayer's net income | 21 | | for the period after December 31, 2024, as calculated under | 22 | | Section 202.5. | 23 | | (5.4) (Blank). In the case of an individual, trust, or | 24 | | estate, for taxable years beginning on or after January 1, | 25 | | 2025, an amount equal to 3.25% of the taxpayer's net income | 26 | | for the taxable year. |
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| 1 | | (6) In the case of a corporation, for taxable years
| 2 | | ending prior to July 1, 1989, an amount equal to 4% of the
| 3 | | taxpayer's net income for the taxable year. | 4 | | (7) In the case of a corporation, for taxable years | 5 | | beginning prior to
July 1, 1989 and ending after June 30, | 6 | | 1989, an amount equal to the sum of
(i) 4% of the | 7 | | taxpayer's net income for the period prior to July 1, 1989,
| 8 | | as calculated under Section 202.3, and (ii) 4.8% of the | 9 | | taxpayer's net
income for the period after June 30, 1989, | 10 | | as calculated under Section
202.3. | 11 | | (8) In the case of a corporation, for taxable years | 12 | | beginning after
June 30, 1989, and ending prior to January | 13 | | 1, 2011, an amount equal to 4.8% of the taxpayer's net | 14 | | income for the
taxable year. | 15 | | (9) (Blank). In the case of a corporation, for taxable | 16 | | years beginning prior to January 1, 2011, and ending after | 17 | | December 31, 2010, an amount equal to the sum of (i) 4.8% | 18 | | of the taxpayer's net income for the period prior to | 19 | | January 1, 2011, as calculated under Section 202.5, and | 20 | | (ii) 7% of the taxpayer's net income for the period after | 21 | | December 31, 2010, as calculated under Section 202.5. | 22 | | (10) (Blank). In the case of a corporation, for taxable | 23 | | years beginning on or after January 1, 2011, and ending | 24 | | prior to January 1, 2015, an amount equal to 7% of the | 25 | | taxpayer's net income for the taxable year. | 26 | | (11) (Blank). In the case of a corporation, for taxable |
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| 1 | | years beginning prior to January 1, 2015, and ending after | 2 | | December 31, 2014, an amount equal to the sum of (i) 7% of | 3 | | the taxpayer's net income for the period prior to January | 4 | | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | 5 | | of the taxpayer's net income for the period after December | 6 | | 31, 2014, as calculated under Section 202.5. | 7 | | (12) (Blank). In the case of a corporation, for taxable | 8 | | years beginning on or after January 1, 2015, and ending | 9 | | prior to January 1, 2025, an amount equal to 5.25% of the | 10 | | taxpayer's net income for the taxable year. | 11 | | (13) (Blank). In the case of a corporation, for taxable | 12 | | years beginning prior to January 1, 2025, and ending after | 13 | | December 31, 2024, an amount equal to the sum of (i) 5.25% | 14 | | of the taxpayer's net income for the period prior to | 15 | | January 1, 2025, as calculated under Section 202.5, and | 16 | | (ii) 4.8% of the taxpayer's net income for the period after | 17 | | December 31, 2024, as calculated under Section 202.5. | 18 | | (14) (Blank). In the case of a corporation, for taxable | 19 | | years beginning on or after January 1, 2025, an amount | 20 | | equal to 4.8% of the taxpayer's net income for the taxable | 21 | | year. | 22 | | The rates under this subsection (b) are subject to the | 23 | | provisions of Section 201.5. | 24 | | (b-5) It is the intention of the General Assembly that this | 25 | | amendatory Act of the 97th General Assembly supersedes Public | 26 | | Act 96-1496. The rates under subsection (b) shall be deemed to |
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| 1 | | be 3% for individuals, trusts, and estates and 4.8% for | 2 | | corporations for the entire period beginning on the effective | 3 | | date of Public Act 96-1496 through the effective date of this | 4 | | amendatory Act of the 97th General Assembly and thereafter. | 5 | | (c) Personal Property Tax Replacement Income Tax.
| 6 | | Beginning on July 1, 1979 and thereafter, in addition to such | 7 | | income
tax, there is also hereby imposed the Personal Property | 8 | | Tax Replacement
Income Tax measured by net income on every | 9 | | corporation (including Subchapter
S corporations), partnership | 10 | | and trust, for each taxable year ending after
June 30, 1979. | 11 | | Such taxes are imposed on the privilege of earning or
receiving | 12 | | income in or as a resident of this State. The Personal Property
| 13 | | Tax Replacement Income Tax shall be in addition to the income | 14 | | tax imposed
by subsections (a) and (b) of this Section and in | 15 | | addition to all other
occupation or privilege taxes imposed by | 16 | | this State or by any municipal
corporation or political | 17 | | subdivision thereof. | 18 | | (d) Additional Personal Property Tax Replacement Income | 19 | | Tax Rates.
The personal property tax replacement income tax | 20 | | imposed by this subsection
and subsection (c) of this Section | 21 | | in the case of a corporation, other
than a Subchapter S | 22 | | corporation and except as adjusted by subsection (d-1),
shall | 23 | | be an additional amount equal to
2.85% of such taxpayer's net | 24 | | income for the taxable year, except that
beginning on January | 25 | | 1, 1981, and thereafter, the rate of 2.85% specified
in this | 26 | | subsection shall be reduced to 2.5%, and in the case of a
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| 1 | | partnership, trust or a Subchapter S corporation shall be an | 2 | | additional
amount equal to 1.5% of such taxpayer's net income | 3 | | for the taxable year. | 4 | | (d-1) Rate reduction for certain foreign insurers. In the | 5 | | case of a
foreign insurer, as defined by Section 35A-5 of the | 6 | | Illinois Insurance Code,
whose state or country of domicile | 7 | | imposes on insurers domiciled in Illinois
a retaliatory tax | 8 | | (excluding any insurer
whose premiums from reinsurance assumed | 9 | | are 50% or more of its total insurance
premiums as determined | 10 | | under paragraph (2) of subsection (b) of Section 304,
except | 11 | | that for purposes of this determination premiums from | 12 | | reinsurance do
not include premiums from inter-affiliate | 13 | | reinsurance arrangements),
beginning with taxable years ending | 14 | | on or after December 31, 1999,
the sum of
the rates of tax | 15 | | imposed by subsections (b) and (d) shall be reduced (but not
| 16 | | increased) to the rate at which the total amount of tax imposed | 17 | | under this Act,
net of all credits allowed under this Act, | 18 | | shall equal (i) the total amount of
tax that would be imposed | 19 | | on the foreign insurer's net income allocable to
Illinois for | 20 | | the taxable year by such foreign insurer's state or country of
| 21 | | domicile if that net income were subject to all income taxes | 22 | | and taxes
measured by net income imposed by such foreign | 23 | | insurer's state or country of
domicile, net of all credits | 24 | | allowed or (ii) a rate of zero if no such tax is
imposed on such | 25 | | income by the foreign insurer's state of domicile.
For the | 26 | | purposes of this subsection (d-1), an inter-affiliate includes |
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| 1 | | a
mutual insurer under common management. | 2 | | (1) For the purposes of subsection (d-1), in no event | 3 | | shall the sum of the
rates of tax imposed by subsections | 4 | | (b) and (d) be reduced below the rate at
which the sum of: | 5 | | (A) the total amount of tax imposed on such foreign | 6 | | insurer under
this Act for a taxable year, net of all | 7 | | credits allowed under this Act, plus | 8 | | (B) the privilege tax imposed by Section 409 of the | 9 | | Illinois Insurance
Code, the fire insurance company | 10 | | tax imposed by Section 12 of the Fire
Investigation | 11 | | Act, and the fire department taxes imposed under | 12 | | Section 11-10-1
of the Illinois Municipal Code, | 13 | | equals 1.25% for taxable years ending prior to December 31, | 14 | | 2003, or
1.75% for taxable years ending on or after | 15 | | December 31, 2003, of the net
taxable premiums written for | 16 | | the taxable year,
as described by subsection (1) of Section | 17 | | 409 of the Illinois Insurance Code.
This paragraph will in | 18 | | no event increase the rates imposed under subsections
(b) | 19 | | and (d). | 20 | | (2) Any reduction in the rates of tax imposed by this | 21 | | subsection shall be
applied first against the rates imposed | 22 | | by subsection (b) and only after the
tax imposed by | 23 | | subsection (a) net of all credits allowed under this | 24 | | Section
other than the credit allowed under subsection (i) | 25 | | has been reduced to zero,
against the rates imposed by | 26 | | subsection (d). |
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| 1 | | This subsection (d-1) is exempt from the provisions of | 2 | | Section 250. | 3 | | (e) Investment credit. A taxpayer shall be allowed a credit
| 4 | | against the Personal Property Tax Replacement Income Tax for
| 5 | | investment in qualified property. | 6 | | (1) A taxpayer shall be allowed a credit equal to .5% | 7 | | of
the basis of qualified property placed in service during | 8 | | the taxable year,
provided such property is placed in | 9 | | service on or after
July 1, 1984. There shall be allowed an | 10 | | additional credit equal
to .5% of the basis of qualified | 11 | | property placed in service during the
taxable year, | 12 | | provided such property is placed in service on or
after | 13 | | July 1, 1986, and the taxpayer's base employment
within | 14 | | Illinois has increased by 1% or more over the preceding | 15 | | year as
determined by the taxpayer's employment records | 16 | | filed with the
Illinois Department of Employment Security. | 17 | | Taxpayers who are new to
Illinois shall be deemed to have | 18 | | met the 1% growth in base employment for
the first year in | 19 | | which they file employment records with the Illinois
| 20 | | Department of Employment Security. The provisions added to | 21 | | this Section by
Public Act 85-1200 (and restored by Public | 22 | | Act 87-895) shall be
construed as declaratory of existing | 23 | | law and not as a new enactment. If,
in any year, the | 24 | | increase in base employment within Illinois over the
| 25 | | preceding year is less than 1%, the additional credit shall | 26 | | be limited to that
percentage times a fraction, the |
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| 1 | | numerator of which is .5% and the denominator
of which is | 2 | | 1%, but shall not exceed .5%. The investment credit shall | 3 | | not be
allowed to the extent that it would reduce a | 4 | | taxpayer's liability in any tax
year below zero, nor may | 5 | | any credit for qualified property be allowed for any
year | 6 | | other than the year in which the property was placed in | 7 | | service in
Illinois. For tax years ending on or after | 8 | | December 31, 1987, and on or
before December 31, 1988, the | 9 | | credit shall be allowed for the tax year in
which the | 10 | | property is placed in service, or, if the amount of the | 11 | | credit
exceeds the tax liability for that year, whether it | 12 | | exceeds the original
liability or the liability as later | 13 | | amended, such excess may be carried
forward and applied to | 14 | | the tax liability of the 5 taxable years following
the | 15 | | excess credit years if the taxpayer (i) makes investments | 16 | | which cause
the creation of a minimum of 2,000 full-time | 17 | | equivalent jobs in Illinois,
(ii) is located in an | 18 | | enterprise zone established pursuant to the Illinois
| 19 | | Enterprise Zone Act and (iii) is certified by the | 20 | | Department of Commerce
and Community Affairs (now | 21 | | Department of Commerce and Economic Opportunity) as | 22 | | complying with the requirements specified in
clause (i) and | 23 | | (ii) by July 1, 1986. The Department of Commerce and
| 24 | | Community Affairs (now Department of Commerce and Economic | 25 | | Opportunity) shall notify the Department of Revenue of all | 26 | | such
certifications immediately. For tax years ending |
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| 1 | | after December 31, 1988,
the credit shall be allowed for | 2 | | the tax year in which the property is
placed in service, | 3 | | or, if the amount of the credit exceeds the tax
liability | 4 | | for that year, whether it exceeds the original liability or | 5 | | the
liability as later amended, such excess may be carried | 6 | | forward and applied
to the tax liability of the 5 taxable | 7 | | years following the excess credit
years. The credit shall | 8 | | be applied to the earliest year for which there is
a | 9 | | liability. If there is credit from more than one tax year | 10 | | that is
available to offset a liability, earlier credit | 11 | | shall be applied first. | 12 | | (2) The term "qualified property" means property | 13 | | which: | 14 | | (A) is tangible, whether new or used, including | 15 | | buildings and structural
components of buildings and | 16 | | signs that are real property, but not including
land or | 17 | | improvements to real property that are not a structural | 18 | | component of a
building such as landscaping, sewer | 19 | | lines, local access roads, fencing, parking
lots, and | 20 | | other appurtenances; | 21 | | (B) is depreciable pursuant to Section 167 of the | 22 | | Internal Revenue Code,
except that "3-year property" | 23 | | as defined in Section 168(c)(2)(A) of that
Code is not | 24 | | eligible for the credit provided by this subsection | 25 | | (e); | 26 | | (C) is acquired by purchase as defined in Section |
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| 1 | | 179(d) of
the Internal Revenue Code; | 2 | | (D) is used in Illinois by a taxpayer who is | 3 | | primarily engaged in
manufacturing, or in mining coal | 4 | | or fluorite, or in retailing, or was placed in service | 5 | | on or after July 1, 2006 in a River Edge Redevelopment | 6 | | Zone established pursuant to the River Edge | 7 | | Redevelopment Zone Act; and | 8 | | (E) has not previously been used in Illinois in | 9 | | such a manner and by
such a person as would qualify for | 10 | | the credit provided by this subsection
(e) or | 11 | | subsection (f). | 12 | | (3) For purposes of this subsection (e), | 13 | | "manufacturing" means
the material staging and production | 14 | | of tangible personal property by
procedures commonly | 15 | | regarded as manufacturing, processing, fabrication, or
| 16 | | assembling which changes some existing material into new | 17 | | shapes, new
qualities, or new combinations. For purposes of | 18 | | this subsection
(e) the term "mining" shall have the same | 19 | | meaning as the term "mining" in
Section 613(c) of the | 20 | | Internal Revenue Code. For purposes of this subsection
(e), | 21 | | the term "retailing" means the sale of tangible personal | 22 | | property for use or consumption and not for resale, or
| 23 | | services rendered in conjunction with the sale of tangible | 24 | | personal property for use or consumption and not for | 25 | | resale. For purposes of this subsection (e), "tangible | 26 | | personal property" has the same meaning as when that term |
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| 1 | | is used in the Retailers' Occupation Tax Act, and, for | 2 | | taxable years ending after December 31, 2008, does not | 3 | | include the generation, transmission, or distribution of | 4 | | electricity. | 5 | | (4) The basis of qualified property shall be the basis
| 6 | | used to compute the depreciation deduction for federal | 7 | | income tax purposes. | 8 | | (5) If the basis of the property for federal income tax | 9 | | depreciation
purposes is increased after it has been placed | 10 | | in service in Illinois by
the taxpayer, the amount of such | 11 | | increase shall be deemed property placed
in service on the | 12 | | date of such increase in basis. | 13 | | (6) The term "placed in service" shall have the same
| 14 | | meaning as under Section 46 of the Internal Revenue Code. | 15 | | (7) If during any taxable year, any property ceases to
| 16 | | be qualified property in the hands of the taxpayer within | 17 | | 48 months after
being placed in service, or the situs of | 18 | | any qualified property is
moved outside Illinois within 48 | 19 | | months after being placed in service, the
Personal Property | 20 | | Tax Replacement Income Tax for such taxable year shall be
| 21 | | increased. Such increase shall be determined by (i) | 22 | | recomputing the
investment credit which would have been | 23 | | allowed for the year in which
credit for such property was | 24 | | originally allowed by eliminating such
property from such | 25 | | computation and, (ii) subtracting such recomputed credit
| 26 | | from the amount of credit previously allowed. For the |
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| 1 | | purposes of this
paragraph (7), a reduction of the basis of | 2 | | qualified property resulting
from a redetermination of the | 3 | | purchase price shall be deemed a disposition
of qualified | 4 | | property to the extent of such reduction. | 5 | | (8) Unless the investment credit is extended by law, | 6 | | the
basis of qualified property shall not include costs | 7 | | incurred after
December 31, 2013, except for costs incurred | 8 | | pursuant to a binding
contract entered into on or before | 9 | | December 31, 2013. | 10 | | (9) Each taxable year ending before December 31, 2000, | 11 | | a partnership may
elect to pass through to its
partners the | 12 | | credits to which the partnership is entitled under this | 13 | | subsection
(e) for the taxable year. A partner may use the | 14 | | credit allocated to him or her
under this paragraph only | 15 | | against the tax imposed in subsections (c) and (d) of
this | 16 | | Section. If the partnership makes that election, those | 17 | | credits shall be
allocated among the partners in the | 18 | | partnership in accordance with the rules
set forth in | 19 | | Section 704(b) of the Internal Revenue Code, and the rules
| 20 | | promulgated under that Section, and the allocated amount of | 21 | | the credits shall
be allowed to the partners for that | 22 | | taxable year. The partnership shall make
this election on | 23 | | its Personal Property Tax Replacement Income Tax return for
| 24 | | that taxable year. The election to pass through the credits | 25 | | shall be
irrevocable. | 26 | | For taxable years ending on or after December 31, 2000, |
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| 1 | | a
partner that qualifies its
partnership for a subtraction | 2 | | under subparagraph (I) of paragraph (2) of
subsection (d) | 3 | | of Section 203 or a shareholder that qualifies a Subchapter | 4 | | S
corporation for a subtraction under subparagraph (S) of | 5 | | paragraph (2) of
subsection (b) of Section 203 shall be | 6 | | allowed a credit under this subsection
(e) equal to its | 7 | | share of the credit earned under this subsection (e) during
| 8 | | the taxable year by the partnership or Subchapter S | 9 | | corporation, determined in
accordance with the | 10 | | determination of income and distributive share of
income | 11 | | under Sections 702 and 704 and Subchapter S of the Internal | 12 | | Revenue
Code. This paragraph is exempt from the provisions | 13 | | of Section 250. | 14 | | (f) Investment credit; Enterprise Zone; River Edge | 15 | | Redevelopment Zone. | 16 | | (1) A taxpayer shall be allowed a credit against the | 17 | | tax imposed
by subsections (a) and (b) of this Section for | 18 | | investment in qualified
property which is placed in service | 19 | | in an Enterprise Zone created
pursuant to the Illinois | 20 | | Enterprise Zone Act or, for property placed in service on | 21 | | or after July 1, 2006, a River Edge Redevelopment Zone | 22 | | established pursuant to the River Edge Redevelopment Zone | 23 | | Act. For partners, shareholders
of Subchapter S | 24 | | corporations, and owners of limited liability companies,
| 25 | | if the liability company is treated as a partnership for | 26 | | purposes of
federal and State income taxation, there shall |
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| 1 | | be allowed a credit under
this subsection (f) to be | 2 | | determined in accordance with the determination
of income | 3 | | and distributive share of income under Sections 702 and 704 | 4 | | and
Subchapter S of the Internal Revenue Code. The credit | 5 | | shall be .5% of the
basis for such property. The credit | 6 | | shall be available only in the taxable
year in which the | 7 | | property is placed in service in the Enterprise Zone or | 8 | | River Edge Redevelopment Zone and
shall not be allowed to | 9 | | the extent that it would reduce a taxpayer's
liability for | 10 | | the tax imposed by subsections (a) and (b) of this Section | 11 | | to
below zero. For tax years ending on or after December | 12 | | 31, 1985, the credit
shall be allowed for the tax year in | 13 | | which the property is placed in
service, or, if the amount | 14 | | of the credit exceeds the tax liability for that
year, | 15 | | whether it exceeds the original liability or the liability | 16 | | as later
amended, such excess may be carried forward and | 17 | | applied to the tax
liability of the 5 taxable years | 18 | | following the excess credit year.
The credit shall be | 19 | | applied to the earliest year for which there is a
| 20 | | liability. If there is credit from more than one tax year | 21 | | that is available
to offset a liability, the credit | 22 | | accruing first in time shall be applied
first. | 23 | | (2) The term qualified property means property which: | 24 | | (A) is tangible, whether new or used, including | 25 | | buildings and
structural components of buildings; | 26 | | (B) is depreciable pursuant to Section 167 of the |
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| 1 | | Internal Revenue
Code, except that "3-year property" | 2 | | as defined in Section 168(c)(2)(A) of
that Code is not | 3 | | eligible for the credit provided by this subsection | 4 | | (f); | 5 | | (C) is acquired by purchase as defined in Section | 6 | | 179(d) of
the Internal Revenue Code; | 7 | | (D) is used in the Enterprise Zone or River Edge | 8 | | Redevelopment Zone by the taxpayer; and | 9 | | (E) has not been previously used in Illinois in | 10 | | such a manner and by
such a person as would qualify for | 11 | | the credit provided by this subsection
(f) or | 12 | | subsection (e). | 13 | | (3) The basis of qualified property shall be the basis | 14 | | used to compute
the depreciation deduction for federal | 15 | | income tax purposes. | 16 | | (4) If the basis of the property for federal income tax | 17 | | depreciation
purposes is increased after it has been placed | 18 | | in service in the Enterprise
Zone or River Edge | 19 | | Redevelopment Zone by the taxpayer, the amount of such | 20 | | increase shall be deemed property
placed in service on the | 21 | | date of such increase in basis. | 22 | | (5) The term "placed in service" shall have the same | 23 | | meaning as under
Section 46 of the Internal Revenue Code. | 24 | | (6) If during any taxable year, any property ceases to | 25 | | be qualified
property in the hands of the taxpayer within | 26 | | 48 months after being placed
in service, or the situs of |
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| 1 | | any qualified property is moved outside the
Enterprise Zone | 2 | | or River Edge Redevelopment Zone within 48 months after | 3 | | being placed in service, the tax
imposed under subsections | 4 | | (a) and (b) of this Section for such taxable year
shall be | 5 | | increased. Such increase shall be determined by (i) | 6 | | recomputing
the investment credit which would have been | 7 | | allowed for the year in which
credit for such property was | 8 | | originally allowed by eliminating such
property from such | 9 | | computation, and (ii) subtracting such recomputed credit
| 10 | | from the amount of credit previously allowed. For the | 11 | | purposes of this
paragraph (6), a reduction of the basis of | 12 | | qualified property resulting
from a redetermination of the | 13 | | purchase price shall be deemed a disposition
of qualified | 14 | | property to the extent of such reduction. | 15 | | (7) There shall be allowed an additional credit equal | 16 | | to 0.5% of the basis of qualified property placed in | 17 | | service during the taxable year in a River Edge | 18 | | Redevelopment Zone, provided such property is placed in | 19 | | service on or after July 1, 2006, and the taxpayer's base | 20 | | employment within Illinois has increased by 1% or more over | 21 | | the preceding year as determined by the taxpayer's | 22 | | employment records filed with the Illinois Department of | 23 | | Employment Security. Taxpayers who are new to Illinois | 24 | | shall be deemed to have met the 1% growth in base | 25 | | employment for the first year in which they file employment | 26 | | records with the Illinois Department of Employment |
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| 1 | | Security. If, in any year, the increase in base employment | 2 | | within Illinois over the preceding year is less than 1%, | 3 | | the additional credit shall be limited to that percentage | 4 | | times a fraction, the numerator of which is 0.5% and the | 5 | | denominator of which is 1%, but shall not exceed 0.5%.
| 6 | | (g) Jobs Tax Credit; Enterprise Zone, River Edge | 7 | | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone. | 8 | | (1) A taxpayer conducting a trade or business in an | 9 | | enterprise zone
or a High Impact Business designated by the | 10 | | Department of Commerce and
Economic Opportunity or for | 11 | | taxable years ending on or after December 31, 2006, in a | 12 | | River Edge Redevelopment Zone conducting a trade or | 13 | | business in a federally designated
Foreign Trade Zone or | 14 | | Sub-Zone shall be allowed a credit against the tax
imposed | 15 | | by subsections (a) and (b) of this Section in the amount of | 16 | | $500
per eligible employee hired to work in the zone during | 17 | | the taxable year. | 18 | | (2) To qualify for the credit: | 19 | | (A) the taxpayer must hire 5 or more eligible | 20 | | employees to work in an
enterprise zone, River Edge | 21 | | Redevelopment Zone, or federally designated Foreign | 22 | | Trade Zone or Sub-Zone
during the taxable year; | 23 | | (B) the taxpayer's total employment within the | 24 | | enterprise zone, River Edge Redevelopment Zone, or
| 25 | | federally designated Foreign Trade Zone or Sub-Zone | 26 | | must
increase by 5 or more full-time employees beyond |
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| 1 | | the total employed in that
zone at the end of the | 2 | | previous tax year for which a jobs tax
credit under | 3 | | this Section was taken, or beyond the total employed by | 4 | | the
taxpayer as of December 31, 1985, whichever is | 5 | | later; and | 6 | | (C) the eligible employees must be employed 180 | 7 | | consecutive days in
order to be deemed hired for | 8 | | purposes of this subsection. | 9 | | (3) An "eligible employee" means an employee who is: | 10 | | (A) Certified by the Department of Commerce and | 11 | | Economic Opportunity
as "eligible for services" | 12 | | pursuant to regulations promulgated in
accordance with | 13 | | Title II of the Job Training Partnership Act, Training
| 14 | | Services for the Disadvantaged or Title III of the Job | 15 | | Training Partnership
Act, Employment and Training | 16 | | Assistance for Dislocated Workers Program. | 17 | | (B) Hired after the enterprise zone, River Edge | 18 | | Redevelopment Zone, or federally designated Foreign
| 19 | | Trade Zone or Sub-Zone was designated or the trade or
| 20 | | business was located in that zone, whichever is later. | 21 | | (C) Employed in the enterprise zone, River Edge | 22 | | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | 23 | | An employee is employed in an
enterprise zone or | 24 | | federally designated Foreign Trade Zone or Sub-Zone
if | 25 | | his services are rendered there or it is the base of
| 26 | | operations for the services performed. |
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| 1 | | (D) A full-time employee working 30 or more hours | 2 | | per week. | 3 | | (4) For tax years ending on or after December 31, 1985 | 4 | | and prior to
December 31, 1988, the credit shall be allowed | 5 | | for the tax year in which
the eligible employees are hired. | 6 | | For tax years ending on or after
December 31, 1988, the | 7 | | credit shall be allowed for the tax year immediately
| 8 | | following the tax year in which the eligible employees are | 9 | | hired. If the
amount of the credit exceeds the tax | 10 | | liability for that year, whether it
exceeds the original | 11 | | liability or the liability as later amended, such
excess | 12 | | may be carried forward and applied to the tax liability of | 13 | | the 5
taxable years following the excess credit year. The | 14 | | credit shall be
applied to the earliest year for which | 15 | | there is a liability. If there is
credit from more than one | 16 | | tax year that is available to offset a liability,
earlier | 17 | | credit shall be applied first. | 18 | | (5) The Department of Revenue shall promulgate such | 19 | | rules and regulations
as may be deemed necessary to carry | 20 | | out the purposes of this subsection (g). | 21 | | (6) The credit shall be available for eligible | 22 | | employees hired on or
after January 1, 1986. | 23 | | (h) Investment credit; High Impact Business. | 24 | | (1) Subject to subsections (b) and (b-5) of Section
5.5 | 25 | | of the Illinois Enterprise Zone Act, a taxpayer shall be | 26 | | allowed a credit
against the tax imposed by subsections (a) |
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| 1 | | and (b) of this Section for
investment in qualified
| 2 | | property which is placed in service by a Department of | 3 | | Commerce and Economic Opportunity
designated High Impact | 4 | | Business. The credit shall be .5% of the basis
for such | 5 | | property. The credit shall not be available (i) until the | 6 | | minimum
investments in qualified property set forth in | 7 | | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| 8 | | Enterprise Zone Act have been satisfied
or (ii) until the | 9 | | time authorized in subsection (b-5) of the Illinois
| 10 | | Enterprise Zone Act for entities designated as High Impact | 11 | | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | 12 | | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | 13 | | Act, and shall not be allowed to the extent that it would
| 14 | | reduce a taxpayer's liability for the tax imposed by | 15 | | subsections (a) and (b) of
this Section to below zero. The | 16 | | credit applicable to such investments shall be
taken in the | 17 | | taxable year in which such investments have been completed. | 18 | | The
credit for additional investments beyond the minimum | 19 | | investment by a designated
high impact business authorized | 20 | | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | 21 | | Enterprise Zone Act shall be available only in the taxable | 22 | | year in
which the property is placed in service and shall | 23 | | not be allowed to the extent
that it would reduce a | 24 | | taxpayer's liability for the tax imposed by subsections
(a) | 25 | | and (b) of this Section to below zero.
For tax years ending | 26 | | on or after December 31, 1987, the credit shall be
allowed |
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| 1 | | for the tax year in which the property is placed in | 2 | | service, or, if
the amount of the credit exceeds the tax | 3 | | liability for that year, whether
it exceeds the original | 4 | | liability or the liability as later amended, such
excess | 5 | | may be carried forward and applied to the tax liability of | 6 | | the 5
taxable years following the excess credit year. The | 7 | | credit shall be
applied to the earliest year for which | 8 | | there is a liability. If there is
credit from more than one | 9 | | tax year that is available to offset a liability,
the | 10 | | credit accruing first in time shall be applied first. | 11 | | Changes made in this subdivision (h)(1) by Public Act | 12 | | 88-670
restore changes made by Public Act 85-1182 and | 13 | | reflect existing law. | 14 | | (2) The term qualified property means property which: | 15 | | (A) is tangible, whether new or used, including | 16 | | buildings and
structural components of buildings; | 17 | | (B) is depreciable pursuant to Section 167 of the | 18 | | Internal Revenue
Code, except that "3-year property" | 19 | | as defined in Section 168(c)(2)(A) of
that Code is not | 20 | | eligible for the credit provided by this subsection | 21 | | (h); | 22 | | (C) is acquired by purchase as defined in Section | 23 | | 179(d) of the
Internal Revenue Code; and | 24 | | (D) is not eligible for the Enterprise Zone | 25 | | Investment Credit provided
by subsection (f) of this | 26 | | Section. |
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| 1 | | (3) The basis of qualified property shall be the basis | 2 | | used to compute
the depreciation deduction for federal | 3 | | income tax purposes. | 4 | | (4) If the basis of the property for federal income tax | 5 | | depreciation
purposes is increased after it has been placed | 6 | | in service in a federally
designated Foreign Trade Zone or | 7 | | Sub-Zone located in Illinois by the taxpayer,
the amount of | 8 | | such increase shall be deemed property placed in service on
| 9 | | the date of such increase in basis. | 10 | | (5) The term "placed in service" shall have the same | 11 | | meaning as under
Section 46 of the Internal Revenue Code. | 12 | | (6) If during any taxable year ending on or before | 13 | | December 31, 1996,
any property ceases to be qualified
| 14 | | property in the hands of the taxpayer within 48 months | 15 | | after being placed
in service, or the situs of any | 16 | | qualified property is moved outside
Illinois within 48 | 17 | | months after being placed in service, the tax imposed
under | 18 | | subsections (a) and (b) of this Section for such taxable | 19 | | year shall
be increased. Such increase shall be determined | 20 | | by (i) recomputing the
investment credit which would have | 21 | | been allowed for the year in which
credit for such property | 22 | | was originally allowed by eliminating such
property from | 23 | | such computation, and (ii) subtracting such recomputed | 24 | | credit
from the amount of credit previously allowed. For | 25 | | the purposes of this
paragraph (6), a reduction of the | 26 | | basis of qualified property resulting
from a |
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| 1 | | redetermination of the purchase price shall be deemed a | 2 | | disposition
of qualified property to the extent of such | 3 | | reduction. | 4 | | (7) Beginning with tax years ending after December 31, | 5 | | 1996, if a
taxpayer qualifies for the credit under this | 6 | | subsection (h) and thereby is
granted a tax abatement and | 7 | | the taxpayer relocates its entire facility in
violation of | 8 | | the explicit terms and length of the contract under Section
| 9 | | 18-183 of the Property Tax Code, the tax imposed under | 10 | | subsections
(a) and (b) of this Section shall be increased | 11 | | for the taxable year
in which the taxpayer relocated its | 12 | | facility by an amount equal to the
amount of credit | 13 | | received by the taxpayer under this subsection (h). | 14 | | (i) Credit for Personal Property Tax Replacement Income | 15 | | Tax.
For tax years ending prior to December 31, 2003, a credit | 16 | | shall be allowed
against the tax imposed by
subsections (a) and | 17 | | (b) of this Section for the tax imposed by subsections (c)
and | 18 | | (d) of this Section. This credit shall be computed by | 19 | | multiplying the tax
imposed by subsections (c) and (d) of this | 20 | | Section by a fraction, the numerator
of which is base income | 21 | | allocable to Illinois and the denominator of which is
Illinois | 22 | | base income, and further multiplying the product by the tax | 23 | | rate
imposed by subsections (a) and (b) of this Section. | 24 | | Any credit earned on or after December 31, 1986 under
this | 25 | | subsection which is unused in the year
the credit is computed | 26 | | because it exceeds the tax liability imposed by
subsections (a) |
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| 1 | | and (b) for that year (whether it exceeds the original
| 2 | | liability or the liability as later amended) may be carried | 3 | | forward and
applied to the tax liability imposed by subsections | 4 | | (a) and (b) of the 5
taxable years following the excess credit | 5 | | year, provided that no credit may
be carried forward to any | 6 | | year ending on or
after December 31, 2003. This credit shall be
| 7 | | applied first to the earliest year for which there is a | 8 | | liability. If
there is a credit under this subsection from more | 9 | | than one tax year that is
available to offset a liability the | 10 | | earliest credit arising under this
subsection shall be applied | 11 | | first. | 12 | | If, during any taxable year ending on or after December 31, | 13 | | 1986, the
tax imposed by subsections (c) and (d) of this | 14 | | Section for which a taxpayer
has claimed a credit under this | 15 | | subsection (i) is reduced, the amount of
credit for such tax | 16 | | shall also be reduced. Such reduction shall be
determined by | 17 | | recomputing the credit to take into account the reduced tax
| 18 | | imposed by subsections (c) and (d). If any portion of the
| 19 | | reduced amount of credit has been carried to a different | 20 | | taxable year, an
amended return shall be filed for such taxable | 21 | | year to reduce the amount of
credit claimed. | 22 | | (j) Training expense credit. Beginning with tax years | 23 | | ending on or
after December 31, 1986 and prior to December 31, | 24 | | 2003, a taxpayer shall be
allowed a credit against the
tax | 25 | | imposed by subsections (a) and (b) under this Section
for all | 26 | | amounts paid or accrued, on behalf of all persons
employed by |
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| 1 | | the taxpayer in Illinois or Illinois residents employed
outside | 2 | | of Illinois by a taxpayer, for educational or vocational | 3 | | training in
semi-technical or technical fields or semi-skilled | 4 | | or skilled fields, which
were deducted from gross income in the | 5 | | computation of taxable income. The
credit against the tax | 6 | | imposed by subsections (a) and (b) shall be 1.6% of
such | 7 | | training expenses. For partners, shareholders of subchapter S
| 8 | | corporations, and owners of limited liability companies, if the | 9 | | liability
company is treated as a partnership for purposes of | 10 | | federal and State income
taxation, there shall be allowed a | 11 | | credit under this subsection (j) to be
determined in accordance | 12 | | with the determination of income and distributive
share of | 13 | | income under Sections 702 and 704 and subchapter S of the | 14 | | Internal
Revenue Code. | 15 | | Any credit allowed under this subsection which is unused in | 16 | | the year
the credit is earned may be carried forward to each of | 17 | | the 5 taxable
years following the year for which the credit is | 18 | | first computed until it is
used. This credit shall be applied | 19 | | first to the earliest year for which
there is a liability. If | 20 | | there is a credit under this subsection from more
than one tax | 21 | | year that is available to offset a liability the earliest
| 22 | | credit arising under this subsection shall be applied first. No | 23 | | carryforward
credit may be claimed in any tax year ending on or | 24 | | after
December 31, 2003. | 25 | | (k) Research and development credit. | 26 | | For tax years ending after July 1, 1990 and prior to
|
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| 1 | | December 31, 2003, and beginning again for tax years ending on | 2 | | or after December 31, 2004, and ending prior to January 1, | 3 | | 2011, a taxpayer shall be
allowed a credit against the tax | 4 | | imposed by subsections (a) and (b) of this
Section for | 5 | | increasing research activities in this State. The credit
| 6 | | allowed against the tax imposed by subsections (a) and (b) | 7 | | shall be equal
to 6 1/2% of the qualifying expenditures for | 8 | | increasing research activities
in this State. For partners, | 9 | | shareholders of subchapter S corporations, and
owners of | 10 | | limited liability companies, if the liability company is | 11 | | treated as a
partnership for purposes of federal and State | 12 | | income taxation, there shall be
allowed a credit under this | 13 | | subsection to be determined in accordance with the
| 14 | | determination of income and distributive share of income under | 15 | | Sections 702 and
704 and subchapter S of the Internal Revenue | 16 | | Code. | 17 | | For purposes of this subsection, "qualifying expenditures" | 18 | | means the
qualifying expenditures as defined for the federal | 19 | | credit for increasing
research activities which would be | 20 | | allowable under Section 41 of the
Internal Revenue Code and | 21 | | which are conducted in this State, "qualifying
expenditures for | 22 | | increasing research activities in this State" means the
excess | 23 | | of qualifying expenditures for the taxable year in which | 24 | | incurred
over qualifying expenditures for the base period, | 25 | | "qualifying expenditures
for the base period" means the average | 26 | | of the qualifying expenditures for
each year in the base |
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| 1 | | period, and "base period" means the 3 taxable years
immediately | 2 | | preceding the taxable year for which the determination is
being | 3 | | made. | 4 | | Any credit in excess of the tax liability for the taxable | 5 | | year
may be carried forward. A taxpayer may elect to have the
| 6 | | unused credit shown on its final completed return carried over | 7 | | as a credit
against the tax liability for the following 5 | 8 | | taxable years or until it has
been fully used, whichever occurs | 9 | | first; provided that no credit earned in a tax year ending | 10 | | prior to December 31, 2003 may be carried forward to any year | 11 | | ending on or after December 31, 2003, and no credit may be | 12 | | carried forward to any taxable year ending on or after January | 13 | | 1, 2011. | 14 | | If an unused credit is carried forward to a given year from | 15 | | 2 or more
earlier years, that credit arising in the earliest | 16 | | year will be applied
first against the tax liability for the | 17 | | given year. If a tax liability for
the given year still | 18 | | remains, the credit from the next earliest year will
then be | 19 | | applied, and so on, until all credits have been used or no tax
| 20 | | liability for the given year remains. Any remaining unused | 21 | | credit or
credits then will be carried forward to the next | 22 | | following year in which a
tax liability is incurred, except | 23 | | that no credit can be carried forward to
a year which is more | 24 | | than 5 years after the year in which the expense for
which the | 25 | | credit is given was incurred. | 26 | | No inference shall be drawn from this amendatory Act of the |
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| 1 | | 91st General
Assembly in construing this Section for taxable | 2 | | years beginning before January
1, 1999. | 3 | | (l) Environmental Remediation Tax Credit. | 4 | | (i) For tax years ending after December 31, 1997 and on | 5 | | or before
December 31, 2001, a taxpayer shall be allowed a | 6 | | credit against the tax
imposed by subsections (a) and (b) | 7 | | of this Section for certain amounts paid
for unreimbursed | 8 | | eligible remediation costs, as specified in this | 9 | | subsection.
For purposes of this Section, "unreimbursed | 10 | | eligible remediation costs" means
costs approved by the | 11 | | Illinois Environmental Protection Agency ("Agency") under
| 12 | | Section 58.14 of the Environmental Protection Act that were | 13 | | paid in performing
environmental remediation at a site for | 14 | | which a No Further Remediation Letter
was issued by the | 15 | | Agency and recorded under Section 58.10 of the | 16 | | Environmental
Protection Act. The credit must be claimed | 17 | | for the taxable year in which
Agency approval of the | 18 | | eligible remediation costs is granted. The credit is
not | 19 | | available to any taxpayer if the taxpayer or any related | 20 | | party caused or
contributed to, in any material respect, a | 21 | | release of regulated substances on,
in, or under the site | 22 | | that was identified and addressed by the remedial
action | 23 | | pursuant to the Site Remediation Program of the | 24 | | Environmental Protection
Act. After the Pollution Control | 25 | | Board rules are adopted pursuant to the
Illinois | 26 | | Administrative Procedure Act for the administration and |
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| 1 | | enforcement of
Section 58.9 of the Environmental | 2 | | Protection Act, determinations as to credit
availability | 3 | | for purposes of this Section shall be made consistent with | 4 | | those
rules. For purposes of this Section, "taxpayer" | 5 | | includes a person whose tax
attributes the taxpayer has | 6 | | succeeded to under Section 381 of the Internal
Revenue Code | 7 | | and "related party" includes the persons disallowed a | 8 | | deduction
for losses by paragraphs (b), (c), and (f)(1) of | 9 | | Section 267 of the Internal
Revenue Code by virtue of being | 10 | | a related taxpayer, as well as any of its
partners. The | 11 | | credit allowed against the tax imposed by subsections (a) | 12 | | and
(b) shall be equal to 25% of the unreimbursed eligible | 13 | | remediation costs in
excess of $100,000 per site, except | 14 | | that the $100,000 threshold shall not apply
to any site | 15 | | contained in an enterprise zone as determined by the | 16 | | Department of
Commerce and Community Affairs (now | 17 | | Department of Commerce and Economic Opportunity). The | 18 | | total credit allowed shall not exceed
$40,000 per year with | 19 | | a maximum total of $150,000 per site. For partners and
| 20 | | shareholders of subchapter S corporations, there shall be | 21 | | allowed a credit
under this subsection to be determined in | 22 | | accordance with the determination of
income and | 23 | | distributive share of income under Sections 702 and 704 and
| 24 | | subchapter S of the Internal Revenue Code. | 25 | | (ii) A credit allowed under this subsection that is | 26 | | unused in the year
the credit is earned may be carried |
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| 1 | | forward to each of the 5 taxable years
following the year | 2 | | for which the credit is first earned until it is used.
The | 3 | | term "unused credit" does not include any amounts of | 4 | | unreimbursed eligible
remediation costs in excess of the | 5 | | maximum credit per site authorized under
paragraph (i). | 6 | | This credit shall be applied first to the earliest year
for | 7 | | which there is a liability. If there is a credit under this | 8 | | subsection
from more than one tax year that is available to | 9 | | offset a liability, the
earliest credit arising under this | 10 | | subsection shall be applied first. A
credit allowed under | 11 | | this subsection may be sold to a buyer as part of a sale
of | 12 | | all or part of the remediation site for which the credit | 13 | | was granted. The
purchaser of a remediation site and the | 14 | | tax credit shall succeed to the unused
credit and remaining | 15 | | carry-forward period of the seller. To perfect the
| 16 | | transfer, the assignor shall record the transfer in the | 17 | | chain of title for the
site and provide written notice to | 18 | | the Director of the Illinois Department of
Revenue of the | 19 | | assignor's intent to sell the remediation site and the | 20 | | amount of
the tax credit to be transferred as a portion of | 21 | | the sale. In no event may a
credit be transferred to any | 22 | | taxpayer if the taxpayer or a related party would
not be | 23 | | eligible under the provisions of subsection (i). | 24 | | (iii) For purposes of this Section, the term "site" | 25 | | shall have the same
meaning as under Section 58.2 of the | 26 | | Environmental Protection Act. |
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| 1 | | (m) Education expense credit. Beginning with tax years | 2 | | ending after
December 31, 1999, a taxpayer who
is the custodian | 3 | | of one or more qualifying pupils shall be allowed a credit
| 4 | | against the tax imposed by subsections (a) and (b) of this | 5 | | Section for
qualified education expenses incurred on behalf of | 6 | | the qualifying pupils.
The credit shall be equal to 25% of | 7 | | qualified education expenses, but in no
event may the total | 8 | | credit under this subsection claimed by a
family that is the
| 9 | | custodian of qualifying pupils exceed $500. In no event shall a | 10 | | credit under
this subsection reduce the taxpayer's liability | 11 | | under this Act to less than
zero. This subsection is exempt | 12 | | from the provisions of Section 250 of this
Act. | 13 | | For purposes of this subsection: | 14 | | "Qualifying pupils" means individuals who (i) are | 15 | | residents of the State of
Illinois, (ii) are under the age of | 16 | | 21 at the close of the school year for
which a credit is | 17 | | sought, and (iii) during the school year for which a credit
is | 18 | | sought were full-time pupils enrolled in a kindergarten through | 19 | | twelfth
grade education program at any school, as defined in | 20 | | this subsection. | 21 | | "Qualified education expense" means the amount incurred
on | 22 | | behalf of a qualifying pupil in excess of $250 for tuition, | 23 | | book fees, and
lab fees at the school in which the pupil is | 24 | | enrolled during the regular school
year. | 25 | | "School" means any public or nonpublic elementary or | 26 | | secondary school in
Illinois that is in compliance with Title |
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| 1 | | VI of the Civil Rights Act of 1964
and attendance at which | 2 | | satisfies the requirements of Section 26-1 of the
School Code, | 3 | | except that nothing shall be construed to require a child to
| 4 | | attend any particular public or nonpublic school to qualify for | 5 | | the credit
under this Section. | 6 | | "Custodian" means, with respect to qualifying pupils, an | 7 | | Illinois resident
who is a parent, the parents, a legal | 8 | | guardian, or the legal guardians of the
qualifying pupils. | 9 | | (n) River Edge Redevelopment Zone site remediation tax | 10 | | credit.
| 11 | | (i) For tax years ending on or after December 31, 2006, | 12 | | a taxpayer shall be allowed a credit against the tax | 13 | | imposed by subsections (a) and (b) of this Section for | 14 | | certain amounts paid for unreimbursed eligible remediation | 15 | | costs, as specified in this subsection. For purposes of | 16 | | this Section, "unreimbursed eligible remediation costs" | 17 | | means costs approved by the Illinois Environmental | 18 | | Protection Agency ("Agency") under Section 58.14a of the | 19 | | Environmental Protection Act that were paid in performing | 20 | | environmental remediation at a site within a River Edge | 21 | | Redevelopment Zone for which a No Further Remediation | 22 | | Letter was issued by the Agency and recorded under Section | 23 | | 58.10 of the Environmental Protection Act. The credit must | 24 | | be claimed for the taxable year in which Agency approval of | 25 | | the eligible remediation costs is granted. The credit is | 26 | | not available to any taxpayer if the taxpayer or any |
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| 1 | | related party caused or contributed to, in any material | 2 | | respect, a release of regulated substances on, in, or under | 3 | | the site that was identified and addressed by the remedial | 4 | | action pursuant to the Site Remediation Program of the | 5 | | Environmental Protection Act. Determinations as to credit | 6 | | availability for purposes of this Section shall be made | 7 | | consistent with rules adopted by the Pollution Control | 8 | | Board pursuant to the Illinois Administrative Procedure | 9 | | Act for the administration and enforcement of Section 58.9 | 10 | | of the Environmental Protection Act. For purposes of this | 11 | | Section, "taxpayer" includes a person whose tax attributes | 12 | | the taxpayer has succeeded to under Section 381 of the | 13 | | Internal Revenue Code and "related party" includes the | 14 | | persons disallowed a deduction for losses by paragraphs | 15 | | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | 16 | | Code by virtue of being a related taxpayer, as well as any | 17 | | of its partners. The credit allowed against the tax imposed | 18 | | by subsections (a) and (b) shall be equal to 25% of the | 19 | | unreimbursed eligible remediation costs in excess of | 20 | | $100,000 per site. | 21 | | (ii) A credit allowed under this subsection that is | 22 | | unused in the year the credit is earned may be carried | 23 | | forward to each of the 5 taxable years following the year | 24 | | for which the credit is first earned until it is used. This | 25 | | credit shall be applied first to the earliest year for | 26 | | which there is a liability. If there is a credit under this |
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| 1 | | subsection from more than one tax year that is available to | 2 | | offset a liability, the earliest credit arising under this | 3 | | subsection shall be applied first. A credit allowed under | 4 | | this subsection may be sold to a buyer as part of a sale of | 5 | | all or part of the remediation site for which the credit | 6 | | was granted. The purchaser of a remediation site and the | 7 | | tax credit shall succeed to the unused credit and remaining | 8 | | carry-forward period of the seller. To perfect the | 9 | | transfer, the assignor shall record the transfer in the | 10 | | chain of title for the site and provide written notice to | 11 | | the Director of the Illinois Department of Revenue of the | 12 | | assignor's intent to sell the remediation site and the | 13 | | amount of the tax credit to be transferred as a portion of | 14 | | the sale. In no event may a credit be transferred to any | 15 | | taxpayer if the taxpayer or a related party would not be | 16 | | eligible under the provisions of subsection (i). | 17 | | (iii) For purposes of this Section, the term "site" | 18 | | shall have the same meaning as under Section 58.2 of the | 19 | | Environmental Protection Act. | 20 | | (iv) This subsection is exempt from the provisions of | 21 | | Section 250.
| 22 | | (Source: P.A. 95-454, eff. 8-27-07; 96-115, eff. 7-31-09; | 23 | | 96-116, eff. 7-31-09; 96-937, eff. 6-23-10; 96-1000, eff. | 24 | | 7-2-10; 96-1496, eff. 1-13-11.)
| 25 | | (35 ILCS 5/207) (from Ch. 120, par. 2-207)
|
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| 1 | | Sec. 207. Net Losses.
| 2 | | (a) If after applying all of the (i) modifications
provided | 3 | | for in paragraph (2) of Section 203(b), paragraph (2) of | 4 | | Section
203(c) and paragraph (2) of Section 203(d) and (ii) the | 5 | | allocation and
apportionment provisions of Article 3 of this
| 6 | | Act and subsection (c) of this Section, the taxpayer's net | 7 | | income results in a loss;
| 8 | | (1) for any taxable year ending prior to December 31, | 9 | | 1999, such loss
shall be allowed
as a carryover or | 10 | | carryback deduction in the manner allowed under Section
172 | 11 | | of the Internal Revenue Code;
| 12 | | (2) for any taxable year ending on or after December | 13 | | 31, 1999 and prior
to December 31, 2003, such loss
shall be | 14 | | allowed as a carryback to each of the 2 taxable years | 15 | | preceding the
taxable year of such loss and shall be a net | 16 | | operating loss carryover to each of the
20 taxable years | 17 | | following the taxable year of such loss; and
| 18 | | (3) for any taxable year ending on or after December | 19 | | 31, 2003, such loss
shall be allowed as a net operating | 20 | | loss carryover to each of the 12 taxable years
following | 21 | | the taxable year of such loss, except as provided in | 22 | | subsection (d).
| 23 | | (a-5) Election to relinquish carryback and order of | 24 | | application of
losses.
| 25 | | (A) For losses incurred in tax years ending prior | 26 | | to December 31,
2003, the taxpayer may elect to |
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| 1 | | relinquish the entire carryback period
with respect to | 2 | | such loss. Such election shall be made in the form and | 3 | | manner
prescribed by the Department and shall be made | 4 | | by the due date (including
extensions of time) for | 5 | | filing the taxpayer's return for the taxable year in
| 6 | | which such loss is incurred, and such election, once | 7 | | made, shall be
irrevocable.
| 8 | | (B) The entire amount of such loss shall be carried | 9 | | to the earliest
taxable year to which such loss may be | 10 | | carried. The amount of such loss which
shall be carried | 11 | | to each of the other taxable years shall be the excess, | 12 | | if
any, of the amount of such loss over the sum of the | 13 | | deductions for carryback or
carryover of such loss | 14 | | allowable for each of the prior taxable years to which
| 15 | | such loss may be carried.
| 16 | | (b) Any loss determined under subsection (a) of this | 17 | | Section must be carried
back or carried forward in the same | 18 | | manner for purposes of subsections (a)
and (b) of Section 201 | 19 | | of this Act as for purposes of subsections (c) and
(d) of | 20 | | Section 201 of this Act.
| 21 | | (c) Notwithstanding any other provision of this Act, for | 22 | | each taxable year ending on or after December 31, 2008, for | 23 | | purposes of computing the loss for the taxable year under | 24 | | subsection (a) of this Section and the deduction taken into | 25 | | account for the taxable year for a net operating loss carryover | 26 | | under paragraphs (1), (2), and (3) of subsection (a) of this |
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| 1 | | Section, the loss and net operating loss carryover shall be | 2 | | reduced in an amount equal to the reduction to the net | 3 | | operating loss and net operating loss carryover to the taxable | 4 | | year, respectively, required under Section 108(b)(2)(A) of the | 5 | | Internal Revenue Code, multiplied by a fraction, the numerator | 6 | | of which is the amount of discharge of indebtedness income that | 7 | | is excluded from gross income for the taxable year (but only if | 8 | | the taxable year ends on or after December 31, 2008) under | 9 | | Section 108(a) of the Internal Revenue Code and that would have | 10 | | been allocated and apportioned to this State under Article 3 of | 11 | | this Act but for that exclusion, and the denominator of which | 12 | | is the total amount of discharge of indebtedness income | 13 | | excluded from gross income under Section 108(a) of the Internal | 14 | | Revenue Code for the taxable year. The reduction required under | 15 | | this subsection (c) shall be made after the determination of | 16 | | Illinois net income for the taxable year in which the | 17 | | indebtedness is discharged.
| 18 | | (d) In the case of a corporation (other than a Subchapter S | 19 | | corporation), no carryover deduction shall be allowed under | 20 | | this Section for any taxable year ending after December 31, | 21 | | 2010 and prior to December 31, 2014; provided that, for | 22 | | purposes of determining the taxable years to which a net loss | 23 | | may be carried under subsection (a) of this Section, no taxable | 24 | | year for which a deduction is disallowed under this subsection | 25 | | shall be counted. | 26 | | (Source: P.A. 95-233, eff. 8-16-07; 96-1496, eff. 1-13-11.)
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| 1 | | (35 ILCS 5/804) (from Ch. 120, par. 8-804)
| 2 | | Sec. 804. Failure to Pay Estimated Tax.
| 3 | | (a) In general. In case of any underpayment of estimated | 4 | | tax by a
taxpayer, except as provided in subsection (d) or (e), | 5 | | the taxpayer shall
be liable to a penalty in an amount | 6 | | determined at the rate prescribed by
Section 3-3 of the Uniform | 7 | | Penalty and Interest Act upon the amount of the
underpayment | 8 | | (determined under subsection (b)) for each required | 9 | | installment.
| 10 | | (b) Amount of underpayment. For purposes of subsection (a), | 11 | | the
amount of the underpayment shall be the excess of:
| 12 | | (1) the amount of the installment which would be | 13 | | required to be paid
under subsection (c), over
| 14 | | (2) the amount, if any, of the installment paid on or | 15 | | before the
last date prescribed for payment.
| 16 | | (c) Amount of Required Installments.
| 17 | | (1) Amount.
| 18 | | (A) In General. Except as provided in paragraph | 19 | | (2), the amount of any
required installment shall be | 20 | | 25% of the required annual payment.
| 21 | | (B) Required Annual Payment. For purposes of | 22 | | subparagraph (A),
the term "required annual payment" | 23 | | means the lesser of
| 24 | | (i) 90% of the tax shown on the return for the | 25 | | taxable year, or
if no return is filed, 90% of the |
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| 1 | | tax for such year, or
| 2 | | (ii) for installments due prior to February 1, | 3 | | 2011, and after January 31, 2012, 100% of the tax | 4 | | shown on the return of the taxpayer for the
| 5 | | preceding taxable year if a return showing a | 6 | | liability for tax was filed by
the taxpayer for the | 7 | | preceding taxable year and such preceding year was | 8 | | a
taxable year of 12 months; or
| 9 | | (iii) for installments due after January 31, | 10 | | 2011, and prior to February 1, 2012, 150% of the | 11 | | tax shown on the return of the taxpayer for the | 12 | | preceding taxable year if a return showing a | 13 | | liability for tax was filed by the taxpayer for the | 14 | | preceding taxable year and such preceding year was | 15 | | a taxable year of 12 months.
| 16 | | (2) Lower Required Installment where Annualized Income | 17 | | Installment is Less
Than Amount Determined Under Paragraph | 18 | | (1).
| 19 | | (A) In General. In the case of any required | 20 | | installment if a taxpayer
establishes that the | 21 | | annualized income installment is less than the amount
| 22 | | determined under paragraph (1),
| 23 | | (i) the amount of such required installment | 24 | | shall be the annualized
income installment, and
| 25 | | (ii) any reduction in a required installment | 26 | | resulting from the
application of this |
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| 1 | | subparagraph shall be recaptured by increasing the
| 2 | | amount of the next required installment determined | 3 | | under paragraph (1) by
the amount of such | 4 | | reduction, and by increasing subsequent required
| 5 | | installments to the extent that the reduction has | 6 | | not previously been
recaptured under this clause.
| 7 | | (B) Determination of Annualized Income | 8 | | Installment. In the case of
any required installment, | 9 | | the annualized income installment is the
excess, if | 10 | | any, of
| 11 | | (i) an amount equal to the applicable | 12 | | percentage of the tax for the
taxable year computed | 13 | | by placing on an annualized basis the net income | 14 | | for
months in the taxable year ending before the | 15 | | due date for the installment, over
| 16 | | (ii) the aggregate amount of any prior | 17 | | required installments for
the taxable year.
| 18 | | (C) Applicable Percentage.
|
|
19 | | In the case of the following |
The applicable |
|
20 | | required installments: |
percentage is: |
|
21 | | 1st ............................... |
22.5% |
|
22 | | 2nd ............................... |
45% |
|
23 | | 3rd ............................... |
67.5% |
|
24 | | 4th ............................... |
90% |
|
25 | | (D) Annualized Net Income; Individuals. For | 26 | | individuals, net
income shall be placed on an |
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| 1 | | annualized basis by:
| 2 | | (i) multiplying by 12, or in the case of a | 3 | | taxable year of
less than 12 months, by the number | 4 | | of months in the taxable year, the
net income | 5 | | computed without regard to the standard exemption | 6 | | for the months
in the taxable
year ending before | 7 | | the month in which the installment is required to | 8 | | be paid;
| 9 | | (ii) dividing the resulting amount by the | 10 | | number of months in the
taxable year ending before | 11 | | the month in which such installment date falls; and
| 12 | | (iii) deducting from such amount the standard | 13 | | exemption allowable for
the taxable year, such | 14 | | standard exemption being determined as of the last
| 15 | | date prescribed for payment of the installment.
| 16 | | (E) Annualized Net Income; Corporations. For | 17 | | corporations,
net income shall be placed on an | 18 | | annualized basis by multiplying
by 12 the taxable | 19 | | income
| 20 | | (i) for the first 3 months of the taxable year, | 21 | | in the case of the
installment required to be paid | 22 | | in the 4th month,
| 23 | | (ii) for the first 3 months or for the first 5 | 24 | | months of the taxable
year, in the case of the | 25 | | installment required to be paid in the 6th month,
| 26 | | (iii) for the first 6 months or for the first 8 |
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| 1 | | months of the taxable
year, in the case of the | 2 | | installment required to be paid in the 9th month, | 3 | | and
| 4 | | (iv) for the first 9 months or for the first 11 | 5 | | months of the taxable
year, in the case of the | 6 | | installment required to be paid in the 12th month
| 7 | | of the taxable year,
| 8 | | then dividing the resulting amount by the number of | 9 | | months in the taxable
year (3, 5, 6, 8, 9, or 11 as the | 10 | | case may be).
| 11 | | (d) Exceptions. Notwithstanding the provisions of the | 12 | | preceding
subsections, the penalty imposed by subsection (a) | 13 | | shall not
be imposed if the taxpayer was not required to file | 14 | | an Illinois income
tax return for the preceding taxable year, | 15 | | or, for individuals, if the
taxpayer had no tax liability for | 16 | | the preceding taxable year and such year
was a taxable year of | 17 | | 12 months.
The penalty imposed by subsection (a) shall
also not | 18 | | be imposed on any underpayments of estimated tax due before the
| 19 | | effective date of this amendatory Act of 1998 which | 20 | | underpayments are solely
attributable to the change in | 21 | | apportionment from subsection (a) to subsection
(h) of Section | 22 | | 304. The provisions of this amendatory Act of 1998 apply to tax
| 23 | | years ending on or after December 31, 1998.
| 24 | | (e) The penalty imposed for underpayment of estimated tax | 25 | | by subsection
(a) of this Section shall not be imposed to the | 26 | | extent that the Director
or his or her designate determines, |
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| 1 | | pursuant to Section 3-8 of the Uniform Penalty
and Interest Act | 2 | | that the penalty should not be imposed.
| 3 | | (f) Definition of tax. For purposes of subsections (b) and | 4 | | (c),
the term "tax" means the excess of the tax imposed under | 5 | | Article 2 of
this Act, over the amounts credited against such | 6 | | tax under Sections
601(b) (3) and (4).
| 7 | | (g) Application of Section in case of tax withheld under | 8 | | Article 7.
For purposes of applying this Section:
| 9 | | (1) in the case of an individual, tax
withheld from | 10 | | compensation for the taxable year shall be deemed a payment
| 11 | | of estimated tax, and an equal part of such amount shall be | 12 | | deemed paid
on each installment date for such taxable year, | 13 | | unless the taxpayer
establishes the dates on which all | 14 | | amounts were actually withheld, in
which case the amounts | 15 | | so withheld shall be deemed payments of estimated
tax on | 16 | | the dates on which such amounts were actually withheld;
| 17 | | (2) amounts timely paid by a partnership, Subchapter S | 18 | | corporation, or trust on behalf of a partner, shareholder, | 19 | | or beneficiary pursuant to subsection (f) of Section 502 or | 20 | | Section 709.5 and claimed as a payment of estimated tax | 21 | | shall be deemed a payment of estimated tax made on the last | 22 | | day of the taxable year of the partnership, Subchapter S | 23 | | corporation, or trust for which the income from the | 24 | | withholding is made was computed; and | 25 | | (3) all other amounts pursuant to Article 7 shall be | 26 | | deemed a payment of estimated tax on the date the payment |
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| 1 | | is made to the taxpayer of the amount from which the tax is | 2 | | withheld.
| 3 | | (g-5) Amounts withheld under the State Salary and Annuity | 4 | | Withholding
Act. An individual who has amounts withheld under | 5 | | paragraph (10) of Section 4
of the State Salary and Annuity | 6 | | Withholding Act may elect to have those amounts
treated as | 7 | | payments of estimated tax made on the dates on which those | 8 | | amounts
are actually withheld.
| 9 | | (i) Short taxable year. The application of this Section to
| 10 | | taxable years of less than 12 months shall be in accordance | 11 | | with
regulations prescribed by the Department.
| 12 | | The changes in this Section made by Public Act 84-127 shall | 13 | | apply to
taxable years ending on or after January 1, 1986.
| 14 | | (Source: P.A. 95-233, eff. 8-16-07; 96-1496, eff. 1-13-11.)
| 15 | | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | 16 | | Sec. 901. Collection Authority. | 17 | | (a) In general. | 18 | | The Department shall collect the taxes imposed by this Act. | 19 | | The Department
shall collect certified past due child support | 20 | | amounts under Section 2505-650
of the Department of Revenue Law | 21 | | (20 ILCS 2505/2505-650). Except as
provided in subsections (c) | 22 | | and , (e) , (f), and (g) of this Section, money collected
| 23 | | pursuant to subsections (a) and (b) of Section 201 of this Act | 24 | | shall be
paid into the General Revenue Fund in the State | 25 | | treasury; money
collected pursuant to subsections (c) and (d) |
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| 1 | | of Section 201 of this Act
shall be paid into the Personal | 2 | | Property Tax Replacement Fund, a special
fund in the State | 3 | | Treasury; and money collected under Section 2505-650 of the
| 4 | | Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
| 5 | | into the
Child Support Enforcement Trust Fund, a special fund | 6 | | outside the State
Treasury, or
to the State
Disbursement Unit | 7 | | established under Section 10-26 of the Illinois Public Aid
| 8 | | Code, as directed by the Department of Healthcare and Family | 9 | | Services. | 10 | | (b) Local Government Distributive Fund. | 11 | | Beginning August 1, 1969, and continuing through June 30, | 12 | | 1994, the Treasurer
shall transfer each month from the General | 13 | | Revenue Fund to a special fund in
the State treasury, to be | 14 | | known as the "Local Government Distributive Fund", an
amount | 15 | | equal to 1/12 of the net revenue realized from the tax imposed | 16 | | by
subsections (a) and (b) of Section 201 of this Act during | 17 | | the preceding month.
Beginning July 1, 1994, and continuing | 18 | | through June 30, 1995, the Treasurer
shall transfer each month | 19 | | from the General Revenue Fund to the Local Government
| 20 | | Distributive Fund an amount equal to 1/11 of the net revenue | 21 | | realized from the
tax imposed by subsections (a) and (b) of | 22 | | Section 201 of this Act during the
preceding month. Beginning | 23 | | July 1, 1995 and continuing through January 31, 2011 , the | 24 | | Treasurer shall transfer each
month from the General Revenue | 25 | | Fund to the Local Government Distributive Fund
an amount equal | 26 | | to the net of (i) 1/10 of the net revenue realized from the
tax |
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| 1 | | imposed by
subsections (a) and (b) of Section 201 of the | 2 | | Illinois Income Tax Act during
the preceding month
(ii) minus, | 3 | | beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | 4 | | and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | 5 | | and continuing through January 31, 2015, the Treasurer shall | 6 | | transfer each month from the General Revenue Fund to the Local | 7 | | Government Distributive Fund an amount equal to the sum of (i) | 8 | | 6% (10% of the ratio of the 3% individual income tax rate prior | 9 | | to 2011 to the 5% individual income tax rate after 2010) of the | 10 | | net revenue realized from the tax imposed by subsections (a) | 11 | | and (b) of Section 201 of this Act upon individuals, trusts, | 12 | | and estates during the preceding month and (ii) 6.86% (10% of | 13 | | the ratio of the 4.8% corporate income tax rate prior to 2011 | 14 | | to the 7% corporate income tax rate after 2010) of the net | 15 | | revenue realized from the tax imposed by subsections (a) and | 16 | | (b) of Section 201 of this Act upon corporations during the | 17 | | preceding month. Beginning February 1, 2015 and continuing | 18 | | through January 31, 2025, the Treasurer shall transfer each | 19 | | month from the General Revenue Fund to the Local Government | 20 | | Distributive Fund an amount equal to the sum of (i) 8% (10% of | 21 | | the ratio of the 3% individual income tax rate prior to 2011 to | 22 | | the 3.75% individual income tax rate after 2014) of the net | 23 | | revenue realized from the tax imposed by subsections (a) and | 24 | | (b) of Section 201 of this Act upon individuals, trusts, and | 25 | | estates during the preceding month and (ii) 9.14% (10% of the | 26 | | ratio of the 4.8% corporate income tax rate prior to 2011 to |
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| 1 | | the 5.25% corporate income tax rate after 2014) of the net | 2 | | revenue realized from the tax imposed by subsections (a) and | 3 | | (b) of Section 201 of this Act upon corporations during the | 4 | | preceding month. Beginning February 1, 2025, the Treasurer | 5 | | shall transfer each month from the General Revenue Fund to the | 6 | | Local Government Distributive Fund an amount equal to the sum | 7 | | of (i) 9.23% (10% of the ratio of the 3% individual income tax | 8 | | rate prior to 2011 to the 3.25% individual income tax rate | 9 | | after 2024) of the net revenue realized from the tax imposed by | 10 | | subsections (a) and (b) of Section 201 of this Act upon | 11 | | individuals, trusts, and estates during the preceding month and | 12 | | (ii) 10% of the net revenue realized from the tax imposed by | 13 | | subsections (a) and (b) of Section 201 of this Act upon | 14 | | corporations during the preceding month. Net revenue realized | 15 | | for a month shall be defined as the
revenue from the tax | 16 | | imposed by subsections (a) and (b) of Section 201 of this
Act | 17 | | which is deposited in the General Revenue Fund, the Education | 18 | | Assistance
Fund, and the Income Tax Surcharge Local Government | 19 | | Distributive Fund , the Fund for the Advancement of Education, | 20 | | and the Commitment to Human Services Fund during the
month | 21 | | minus the amount paid out of the General Revenue Fund in State | 22 | | warrants
during that same month as refunds to taxpayers for | 23 | | overpayment of liability
under the tax imposed by subsections | 24 | | (a) and (b) of Section 201 of this Act. | 25 | | (c) Deposits Into Income Tax Refund Fund. | 26 | | (1) Beginning on January 1, 1989 and thereafter, the |
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| 1 | | Department shall
deposit a percentage of the amounts | 2 | | collected pursuant to subsections (a)
and (b)(1), (2), and | 3 | | (3), of Section 201 of this Act into a fund in the State
| 4 | | treasury known as the Income Tax Refund Fund. The | 5 | | Department shall deposit 6%
of such amounts during the | 6 | | period beginning January 1, 1989 and ending on June
30, | 7 | | 1989. Beginning with State fiscal year 1990 and for each | 8 | | fiscal year
thereafter, the percentage deposited into the | 9 | | Income Tax Refund Fund during a
fiscal year shall be the | 10 | | Annual Percentage. For fiscal years 1999 through
2001, the | 11 | | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | 12 | | Annual Percentage shall be 8%.
For fiscal year 2004, the | 13 | | Annual Percentage shall be 11.7%. Upon the effective date | 14 | | of this amendatory Act of the 93rd General Assembly, the | 15 | | Annual Percentage shall be 10% for fiscal year 2005. For | 16 | | fiscal year 2006, the Annual Percentage shall be 9.75%. For | 17 | | fiscal
year 2007, the Annual Percentage shall be 9.75%. For | 18 | | fiscal year 2008, the Annual Percentage shall be 7.75%. For | 19 | | fiscal year 2009, the Annual Percentage shall be 9.75%. For | 20 | | fiscal year 2010, the Annual Percentage shall be 9.75%. For | 21 | | fiscal year 2011, the Annual Percentage shall be 8.75%. For | 22 | | all other
fiscal years, the
Annual Percentage shall be | 23 | | calculated as a fraction, the numerator of which
shall be | 24 | | the amount of refunds approved for payment by the | 25 | | Department during
the preceding fiscal year as a result of | 26 | | overpayment of tax liability under
subsections (a) and |
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| 1 | | (b)(1), (2), and (3) of Section 201 of this Act plus the
| 2 | | amount of such refunds remaining approved but unpaid at the | 3 | | end of the
preceding fiscal year, minus the amounts | 4 | | transferred into the Income Tax
Refund Fund from the | 5 | | Tobacco Settlement Recovery Fund, and
the denominator of | 6 | | which shall be the amounts which will be collected pursuant
| 7 | | to subsections (a) and (b)(1), (2), and (3) of Section 201 | 8 | | of this Act during
the preceding fiscal year; except that | 9 | | in State fiscal year 2002, the Annual
Percentage shall in | 10 | | no event exceed 7.6%. The Director of Revenue shall
certify | 11 | | the Annual Percentage to the Comptroller on the last | 12 | | business day of
the fiscal year immediately preceding the | 13 | | fiscal year for which it is to be
effective. | 14 | | (2) Beginning on January 1, 1989 and thereafter, the | 15 | | Department shall
deposit a percentage of the amounts | 16 | | collected pursuant to subsections (a)
and (b)(6), (7), and | 17 | | (8), (c) and (d) of Section 201
of this Act into a fund in | 18 | | the State treasury known as the Income Tax
Refund Fund. The | 19 | | Department shall deposit 18% of such amounts during the
| 20 | | period beginning January 1, 1989 and ending on June 30, | 21 | | 1989. Beginning
with State fiscal year 1990 and for each | 22 | | fiscal year thereafter, the
percentage deposited into the | 23 | | Income Tax Refund Fund during a fiscal year
shall be the | 24 | | Annual Percentage. For fiscal years 1999, 2000, and 2001, | 25 | | the
Annual Percentage shall be 19%.
For fiscal year 2003, | 26 | | the Annual Percentage shall be 27%. For fiscal year
2004, |
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| 1 | | the Annual Percentage shall be 32%.
Upon the effective date | 2 | | of this amendatory Act of the 93rd General Assembly, the | 3 | | Annual Percentage shall be 24% for fiscal year 2005.
For | 4 | | fiscal year 2006, the Annual Percentage shall be 20%. For | 5 | | fiscal
year 2007, the Annual Percentage shall be 17.5%. For | 6 | | fiscal year 2008, the Annual Percentage shall be 15.5%. For | 7 | | fiscal year 2009, the Annual Percentage shall be 17.5%. For | 8 | | fiscal year 2010, the Annual Percentage shall be 17.5%. For | 9 | | fiscal year 2011, the Annual Percentage shall be 17.5%. For | 10 | | all other fiscal years, the Annual
Percentage shall be | 11 | | calculated
as a fraction, the numerator of which shall be | 12 | | the amount of refunds
approved for payment by the | 13 | | Department during the preceding fiscal year as
a result of | 14 | | overpayment of tax liability under subsections (a) and | 15 | | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this | 16 | | Act plus the
amount of such refunds remaining approved but | 17 | | unpaid at the end of the
preceding fiscal year, and the | 18 | | denominator of
which shall be the amounts which will be | 19 | | collected pursuant to subsections (a)
and (b)(6), (7), and | 20 | | (8), (c) and (d) of Section 201 of this Act during the
| 21 | | preceding fiscal year; except that in State fiscal year | 22 | | 2002, the Annual
Percentage shall in no event exceed 23%. | 23 | | The Director of Revenue shall
certify the Annual Percentage | 24 | | to the Comptroller on the last business day of
the fiscal | 25 | | year immediately preceding the fiscal year for which it is | 26 | | to be
effective. |
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| 1 | | (3) The Comptroller shall order transferred and the | 2 | | Treasurer shall
transfer from the Tobacco Settlement | 3 | | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | 4 | | in January, 2001, (ii) $35,000,000 in January, 2002, and
| 5 | | (iii) $35,000,000 in January, 2003. | 6 | | (d) Expenditures from Income Tax Refund Fund. | 7 | | (1) Beginning January 1, 1989, money in the Income Tax | 8 | | Refund Fund
shall be expended exclusively for the purpose | 9 | | of paying refunds resulting
from overpayment of tax | 10 | | liability under Section 201 of this Act, for paying
rebates | 11 | | under Section 208.1 in the event that the amounts in the | 12 | | Homeowners'
Tax Relief Fund are insufficient for that | 13 | | purpose,
and for
making transfers pursuant to this | 14 | | subsection (d). | 15 | | (2) The Director shall order payment of refunds | 16 | | resulting from
overpayment of tax liability under Section | 17 | | 201 of this Act from the
Income Tax Refund Fund only to the | 18 | | extent that amounts collected pursuant
to Section 201 of | 19 | | this Act and transfers pursuant to this subsection (d)
and | 20 | | item (3) of subsection (c) have been deposited and retained | 21 | | in the
Fund. | 22 | | (3) As soon as possible after the end of each fiscal | 23 | | year, the Director
shall
order transferred and the State | 24 | | Treasurer and State Comptroller shall
transfer from the | 25 | | Income Tax Refund Fund to the Personal Property Tax
| 26 | | Replacement Fund an amount, certified by the Director to |
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| 1 | | the Comptroller,
equal to the excess of the amount | 2 | | collected pursuant to subsections (c) and
(d) of Section | 3 | | 201 of this Act deposited into the Income Tax Refund Fund
| 4 | | during the fiscal year over the amount of refunds resulting | 5 | | from
overpayment of tax liability under subsections (c) and | 6 | | (d) of Section 201
of this Act paid from the Income Tax | 7 | | Refund Fund during the fiscal year. | 8 | | (4) As soon as possible after the end of each fiscal | 9 | | year, the Director shall
order transferred and the State | 10 | | Treasurer and State Comptroller shall
transfer from the | 11 | | Personal Property Tax Replacement Fund to the Income Tax
| 12 | | Refund Fund an amount, certified by the Director to the | 13 | | Comptroller, equal
to the excess of the amount of refunds | 14 | | resulting from overpayment of tax
liability under | 15 | | subsections (c) and (d) of Section 201 of this Act paid
| 16 | | from the Income Tax Refund Fund during the fiscal year over | 17 | | the amount
collected pursuant to subsections (c) and (d) of | 18 | | Section 201 of this Act
deposited into the Income Tax | 19 | | Refund Fund during the fiscal year. | 20 | | (4.5) As soon as possible after the end of fiscal year | 21 | | 1999 and of each
fiscal year
thereafter, the Director shall | 22 | | order transferred and the State Treasurer and
State | 23 | | Comptroller shall transfer from the Income Tax Refund Fund | 24 | | to the General
Revenue Fund any surplus remaining in the | 25 | | Income Tax Refund Fund as of the end
of such fiscal year; | 26 | | excluding for fiscal years 2000, 2001, and 2002
amounts |
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| 1 | | attributable to transfers under item (3) of subsection (c) | 2 | | less refunds
resulting from the earned income tax credit. | 3 | | (5) This Act shall constitute an irrevocable and | 4 | | continuing
appropriation from the Income Tax Refund Fund | 5 | | for the purpose of paying
refunds upon the order of the | 6 | | Director in accordance with the provisions of
this Section. | 7 | | (e) Deposits into the Education Assistance Fund and the | 8 | | Income Tax
Surcharge Local Government Distributive Fund. | 9 | | On July 1, 1991, and thereafter, of the amounts collected | 10 | | pursuant to
subsections (a) and (b) of Section 201 of this Act, | 11 | | minus deposits into the
Income Tax Refund Fund, the Department | 12 | | shall deposit 7.3% into the
Education Assistance Fund in the | 13 | | State Treasury. Beginning July 1, 1991,
and continuing through | 14 | | January 31, 1993, of the amounts collected pursuant to
| 15 | | subsections (a) and (b) of Section 201 of the Illinois Income | 16 | | Tax Act, minus
deposits into the Income Tax Refund Fund, the | 17 | | Department shall deposit 3.0%
into the Income Tax Surcharge | 18 | | Local Government Distributive Fund in the State
Treasury. | 19 | | Beginning February 1, 1993 and continuing through June 30, | 20 | | 1993, of
the amounts collected pursuant to subsections (a) and | 21 | | (b) of Section 201 of the
Illinois Income Tax Act, minus | 22 | | deposits into the Income Tax Refund Fund, the
Department shall | 23 | | deposit 4.4% into the Income Tax Surcharge Local Government
| 24 | | Distributive Fund in the State Treasury. Beginning July 1, | 25 | | 1993, and
continuing through June 30, 1994, of the amounts | 26 | | collected under subsections
(a) and (b) of Section 201 of this |
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| 1 | | Act, minus deposits into the Income Tax
Refund Fund, the | 2 | | Department shall deposit 1.475% into the Income Tax Surcharge
| 3 | | Local Government Distributive Fund in the State Treasury. | 4 | | (f) (Blank). Deposits into the Fund for the Advancement of | 5 | | Education. Beginning February 1, 2015, the Department shall | 6 | | deposit the following portions of the revenue realized from the | 7 | | tax imposed upon individuals, trusts, and estates by | 8 | | subsections (a) and (b) of Section 201 of this Act during the | 9 | | preceding month, minus deposits into the Income Tax Refund | 10 | | Fund, into the Fund for the Advancement of Education: | 11 | | (1) beginning February 1, 2015, and prior to February | 12 | | 1, 2025, 1/30; and | 13 | | (2) beginning February 1, 2025, 1/26. | 14 | | If the rate of tax imposed by subsection (a) and (b) of | 15 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 16 | | the Department shall not make the deposits required by this | 17 | | subsection (f) on or after the effective date of the reduction. | 18 | | (g) (Blank). Deposits into the Commitment to Human Services | 19 | | Fund. Beginning February 1, 2015, the Department shall deposit | 20 | | the following portions of the revenue realized from the tax | 21 | | imposed upon individuals, trusts, and estates by subsections | 22 | | (a) and (b) of Section 201 of this Act during the preceding | 23 | | month, minus deposits into the Income Tax Refund Fund, into the | 24 | | Commitment to Human Services Fund: | 25 | | (1) beginning February 1, 2015, and prior to February | 26 | | 1, 2025, 1/30; and |
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| 1 | | (2) beginning February 1, 2025, 1/26. | 2 | | If the rate of tax imposed by subsection (a) and (b) of | 3 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 4 | | the Department shall not make the deposits required by this | 5 | | subsection (g) on or after the effective date of the reduction. | 6 | | (Source: P.A. 95-707, eff. 1-11-08; 95-744, eff. 7-18-08; | 7 | | 96-45, eff. 7-15-09; 96-328, eff. 8-11-09; 96-959, eff. 7-1-10; | 8 | | 96-1496, eff. 1-13-11.) | 9 | | Section 15. The Illinois Estate and Generation-Skipping | 10 | | Transfer Tax Act is amended by changing Section 2 as follows:
| 11 | | (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
| 12 | | Sec. 2. Definitions.
| 13 | | "Federal estate tax" means the tax due to the United States | 14 | | with respect
to a taxable transfer under Chapter 11 of the | 15 | | Internal Revenue Code.
| 16 | | "Federal generation-skipping transfer tax" means the tax | 17 | | due to the
United States with respect to a taxable transfer | 18 | | under Chapter 13 of the
Internal Revenue Code.
| 19 | | "Federal return" means the federal estate tax return with | 20 | | respect to the
federal estate tax and means the federal | 21 | | generation-skipping transfer tax
return
with respect to the | 22 | | federal generation-skipping transfer tax.
| 23 | | "Federal transfer tax" means the federal estate tax or the | 24 | | federal
generation-skipping transfer tax.
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| 1 | | "Illinois estate tax" means the tax due to this State with | 2 | | respect to a
taxable transfer.
| 3 | | "Illinois generation-skipping transfer tax" means the tax | 4 | | due to this State
with respect to a taxable transfer that gives | 5 | | rise to a federal
generation-skipping transfer tax.
| 6 | | "Illinois transfer tax" means the Illinois estate tax or | 7 | | the Illinois
generation-skipping transfer tax.
| 8 | | "Internal Revenue Code" means, unless otherwise provided, | 9 | | the Internal
Revenue Code of 1986, as
amended from time to | 10 | | time.
| 11 | | "Non-resident trust" means a trust that is not a resident | 12 | | of this State
for purposes of the Illinois Income Tax Act, as | 13 | | amended from time to time.
| 14 | | "Person" means and includes any individual, trust, estate, | 15 | | partnership,
association, company or corporation.
| 16 | | "Qualified heir" means a qualified heir as defined in | 17 | | Section 2032A(e)(1)
of the Internal Revenue Code.
| 18 | | "Resident trust" means a trust that is a resident of this | 19 | | State for
purposes of the Illinois Income Tax Act, as amended | 20 | | from time to time.
| 21 | | "State" means any state, territory or possession of the | 22 | | United States and
the District of Columbia.
| 23 | | "State tax credit" means:
| 24 | | (a) For persons dying on or after January 1, 2003 and
| 25 | | through December 31, 2005, an amount
equal
to the full credit | 26 | | calculable under Section 2011 or Section 2604 of the
Internal |
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| 1 | | Revenue
Code as the credit would have been computed and allowed | 2 | | under the Internal
Revenue
Code as in effect on December 31, | 3 | | 2001, without the reduction in the State
Death Tax
Credit as | 4 | | provided in Section 2011(b)(2) or the termination of the State | 5 | | Death
Tax Credit
as provided in Section 2011(f) as enacted by | 6 | | the Economic Growth and Tax Relief
Reconciliation Act of 2001, | 7 | | but recognizing the increased applicable exclusion
amount
| 8 | | through December 31, 2005.
| 9 | | (b) For persons dying after December 31, 2005 and on or | 10 | | before December 31,
2009, and for persons dying after December | 11 | | 31, 2010, an amount equal to the full
credit
calculable under | 12 | | Section 2011 or 2604 of the Internal Revenue Code as the
credit | 13 | | would
have been computed and allowed under the Internal Revenue | 14 | | Code as in effect on
December 31, 2001, without the reduction | 15 | | in the State Death Tax Credit as
provided in
Section 2011(b)(2) | 16 | | or the termination of the State Death Tax Credit as provided
in
| 17 | | Section 2011(f) as enacted by the Economic Growth and Tax | 18 | | Relief Reconciliation
Act of
2001, but recognizing the | 19 | | exclusion amount of only $2,000,000, and with reduction to the | 20 | | adjusted taxable estate for any qualified terminable interest | 21 | | property election as defined in subsection (b-1) of this | 22 | | Section.
| 23 | | (b-1) The person required to file the Illinois return may | 24 | | elect on a timely filed Illinois return a marital deduction for | 25 | | qualified terminable interest property under Section | 26 | | 2056(b)(7) of the Internal Revenue Code for purposes of the |
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| 1 | | Illinois estate tax that is separate and independent of any | 2 | | qualified terminable interest property election for federal | 3 | | estate tax purposes. For purposes of the Illinois estate tax, | 4 | | the inclusion of property in the gross estate of a surviving | 5 | | spouse is the same as under Section 2044 of the Internal | 6 | | Revenue Code. | 7 | | In the case of any trust for which a State or federal | 8 | | qualified terminable interest property election is made, the | 9 | | trustee may not retain non-income producing assets for more | 10 | | than a reasonable amount of time without the consent of the | 11 | | surviving spouse.
| 12 | | (c) For persons dying after December 31, 2009, the credit | 13 | | for state tax allowable under Section 2011 or Section 2604 of | 14 | | the Internal Revenue Code. | 15 | | "Taxable transfer" means an event that gives rise to a | 16 | | state tax credit,
including any credit as a result of the | 17 | | imposition of an
additional tax under Section 2032A(c) of the | 18 | | Internal Revenue Code.
| 19 | | "Transferee" means a transferee within the meaning of | 20 | | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | 21 | | Code.
| 22 | | "Transferred property" means:
| 23 | | (1) With respect to a taxable transfer occurring at the | 24 | | death of an
individual, the
deceased individual's gross | 25 | | estate as defined in Section 2031 of the
Internal Revenue | 26 | | Code.
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| 1 | | (2) With respect to a taxable transfer occurring as a | 2 | | result of a
taxable termination as defined in Section | 3 | | 2612(a) of the Internal Revenue Code,
the taxable amount | 4 | | determined under Section 2622(a) of the Internal Revenue
| 5 | | Code.
| 6 | | (3) With respect to a taxable transfer occurring as a | 7 | | result of a
taxable distribution as defined in Section | 8 | | 2612(b) of the Internal Revenue Code,
the taxable amount | 9 | | determined under Section 2621(a) of the Internal Revenue
| 10 | | Code.
| 11 | | (4) With respect to an event which causes the | 12 | | imposition of an
additional estate tax under Section | 13 | | 2032A(c) of the Internal Revenue Code,
the
qualified real | 14 | | property that was disposed of or which ceased to be used | 15 | | for
the qualified use, within the meaning of Section | 16 | | 2032A(c)(1) of the Internal
Revenue Code.
| 17 | | "Trust" includes a trust as defined in Section 2652(b)(1) | 18 | | of the Internal
Revenue Code.
| 19 | | (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11.)
| 20 | | (30 ILCS 5/3-20 rep.) | 21 | | Section 20. The Illinois State Auditing Act is amended by | 22 | | repealing Section 3-20. | 23 | | (30 ILCS 105/5.787 rep.) | 24 | | (30 ILCS 105/6z-85 rep.) |
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| 1 | | (30 ILCS 105/6z-86 rep.) | 2 | | (30 ILCS 105/25.2 rep.) | 3 | | Section 25. The State Finance Act is amended by repealing | 4 | | Sections 5.787, 6z-85, 6z-86, and 25.2.
| 5 | | (35 ILCS 5/202.5 rep.) | 6 | | Section 30. The Illinois Income Tax Act is amended by | 7 | | repealing Section 202.5. | 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
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