Full Text of SB3081 93rd General Assembly
SB3081 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB3081
Introduced 2/6/2004, by Jeffrey M. Schoenberg SYNOPSIS AS INTRODUCED: |
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35 ILCS 5/203 |
from Ch. 120, par. 2-203 |
35 ILCS 5/216 new |
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35 ILCS 5/217 new |
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Amends the Illinois Income Tax Act. Allows corporations to take an income tax deduction in an amount equal to all amounts paid to Illinois research institutions during the taxable year for the purpose of fostering research and development in high technology leading to the development of new products and services that can be marketed by Illinois businesses. Creates a new business technology development credit for Illinois small business concerns that have been doing business for 4 years or less and that conduct primarily all of their business operations in Illinois in the amount of 25% of all qualified research expenses for Illinois high technology research and development activities leading to the development of new or improved products and services that can be marketed by Illinois businesses. Creates a high technology research credit for qualifying high technology research activities in this State. Provides that a taxpayer may not claim both credits for the same taxable year. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB3081 |
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LRB093 19351 SJM 45087 b |
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| AN ACT concerning taxes.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing Section 203 and by adding Sections 216 and 217 as | 6 |
| follows:
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| (35 ILCS 5/203) (from Ch. 120, par. 2-203)
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| Sec. 203. Base income defined.
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| (a) Individuals.
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| (1) In general. In the case of an individual, base | 11 |
| income means an
amount equal to the taxpayer's adjusted | 12 |
| gross income for the taxable
year as modified by paragraph | 13 |
| (2).
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| (2) Modifications. The adjusted gross income referred | 15 |
| to in
paragraph (1) shall be modified by adding thereto the | 16 |
| sum of the
following amounts:
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| (A) An amount equal to all amounts paid or accrued | 18 |
| to the taxpayer
as interest or dividends during the | 19 |
| taxable year to the extent excluded
from gross income | 20 |
| in the computation of adjusted gross income, except | 21 |
| stock
dividends of qualified public utilities | 22 |
| described in Section 305(e) of the
Internal Revenue | 23 |
| Code;
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| (B) An amount equal to the amount of tax imposed by | 25 |
| this Act to the
extent deducted from gross income in | 26 |
| the computation of adjusted gross
income for the | 27 |
| taxable year;
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| (C) An amount equal to the amount received during | 29 |
| the taxable year
as a recovery or refund of real | 30 |
| property taxes paid with respect to the
taxpayer's | 31 |
| principal residence under the Revenue Act of
1939 and | 32 |
| for which a deduction was previously taken under |
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| subparagraph (L) of
this paragraph (2) prior to July 1, | 2 |
| 1991, the retrospective application date of
Article 4 | 3 |
| of Public Act 87-17. In the case of multi-unit or | 4 |
| multi-use
structures and farm dwellings, the taxes on | 5 |
| the taxpayer's principal residence
shall be that | 6 |
| portion of the total taxes for the entire property | 7 |
| which is
attributable to such principal residence;
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| (D) An amount equal to the amount of the capital | 9 |
| gain deduction
allowable under the Internal Revenue | 10 |
| Code, to the extent deducted from gross
income in the | 11 |
| computation of adjusted gross income;
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| (D-5) An amount, to the extent not included in | 13 |
| adjusted gross income,
equal to the amount of money | 14 |
| withdrawn by the taxpayer in the taxable year from
a | 15 |
| medical care savings account and the interest earned on | 16 |
| the account in the
taxable year of a withdrawal | 17 |
| pursuant to subsection (b) of Section 20 of the
Medical | 18 |
| Care Savings Account Act or subsection (b) of Section | 19 |
| 20 of the
Medical Care Savings Account Act of 2000;
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| (D-10) For taxable years ending after December 31, | 21 |
| 1997, an
amount equal to any eligible remediation costs | 22 |
| that the individual
deducted in computing adjusted | 23 |
| gross income and for which the
individual claims a | 24 |
| credit under subsection (l) of Section 201;
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| (D-15) For taxable years 2001 and thereafter, an | 26 |
| amount equal to the
bonus depreciation deduction (30% | 27 |
| of the adjusted basis of the qualified
property) taken | 28 |
| on the taxpayer's federal income tax return for the | 29 |
| taxable
year under subsection (k) of Section 168 of the | 30 |
| Internal Revenue Code; and
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| (D-16) If the taxpayer reports a capital gain or | 32 |
| loss on the
taxpayer's federal income tax return for | 33 |
| the taxable year based on a sale or
transfer of | 34 |
| property for which the taxpayer was required in any | 35 |
| taxable year to
make an addition modification under | 36 |
| subparagraph (D-15), then an amount equal
to the |
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| aggregate amount of the deductions taken in all taxable
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| years under subparagraph (Z) with respect to that | 3 |
| property . ;
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| The taxpayer is required to make the addition | 5 |
| modification under this
subparagraph
only once with | 6 |
| respect to any one piece of property ; . and
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| (D-20)
(D-15) For taxable years beginning on or | 8 |
| after January 1,
2002, in
the
case of a distribution | 9 |
| from a qualified tuition program under Section 529 of
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| the Internal Revenue Code, other than (i) a | 11 |
| distribution from a College Savings
Pool created under | 12 |
| Section 16.5 of the State Treasurer Act or (ii) a
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| distribution from the Illinois Prepaid Tuition Trust | 14 |
| Fund, an amount equal to
the amount excluded from gross | 15 |
| income under Section 529(c)(3)(B);
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| and by deducting from the total so obtained the
sum of the | 17 |
| following amounts:
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| (E) For taxable years ending before December 31, | 19 |
| 2001,
any amount included in such total in respect of | 20 |
| any compensation
(including but not limited to any | 21 |
| compensation paid or accrued to a
serviceman while a | 22 |
| prisoner of war or missing in action) paid to a | 23 |
| resident
by reason of being on active duty in the Armed | 24 |
| Forces of the United States
and in respect of any | 25 |
| compensation paid or accrued to a resident who as a
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| governmental employee was a prisoner of war or missing | 27 |
| in action, and in
respect of any compensation paid to a | 28 |
| resident in 1971 or thereafter for
annual training | 29 |
| performed pursuant to Sections 502 and 503, Title 32,
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| United States Code as a member of the Illinois National | 31 |
| Guard.
For taxable years ending on or after December | 32 |
| 31, 2001, any amount included in
such total in respect | 33 |
| of any compensation (including but not limited to any
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| compensation paid or accrued to a serviceman while a | 35 |
| prisoner of war or missing
in action) paid to a | 36 |
| resident by reason of being a member of any component |
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| of
the Armed Forces of the United States and in respect | 2 |
| of any compensation paid
or accrued to a resident who | 3 |
| as a governmental employee was a prisoner of war
or | 4 |
| missing in action, and in respect of any compensation | 5 |
| paid to a resident in
2001 or thereafter by reason of | 6 |
| being a member of the Illinois National Guard.
The | 7 |
| provisions of this amendatory Act of the 92nd General | 8 |
| Assembly are exempt
from the provisions of Section 250;
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| (F) An amount equal to all amounts included in such | 10 |
| total pursuant
to the provisions of Sections 402(a), | 11 |
| 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | 12 |
| Internal Revenue Code, or included in such total as
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| distributions under the provisions of any retirement | 14 |
| or disability plan for
employees of any governmental | 15 |
| agency or unit, or retirement payments to
retired | 16 |
| partners, which payments are excluded in computing net | 17 |
| earnings
from self employment by Section 1402 of the | 18 |
| Internal Revenue Code and
regulations adopted pursuant | 19 |
| thereto;
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| (G) The valuation limitation amount;
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| (H) An amount equal to the amount of any tax | 22 |
| imposed by this Act
which was refunded to the taxpayer | 23 |
| and included in such total for the
taxable year;
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| (I) An amount equal to all amounts included in such | 25 |
| total pursuant
to the provisions of Section 111 of the | 26 |
| Internal Revenue Code as a
recovery of items previously | 27 |
| deducted from adjusted gross income in the
computation | 28 |
| of taxable income;
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| (J) An amount equal to those dividends included in | 30 |
| such total which were
paid by a corporation which | 31 |
| conducts business operations in an Enterprise
Zone or | 32 |
| zones created under the Illinois Enterprise Zone Act, | 33 |
| and conducts
substantially all of its operations in an | 34 |
| Enterprise Zone or zones;
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| (K) An amount equal to those dividends included in | 36 |
| such total that
were paid by a corporation that |
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| conducts business operations in a federally
designated | 2 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 3 |
| High Impact
Business located in Illinois; provided | 4 |
| that dividends eligible for the
deduction provided in | 5 |
| subparagraph (J) of paragraph (2) of this subsection
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| shall not be eligible for the deduction provided under | 7 |
| this subparagraph
(K);
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| (L) For taxable years ending after December 31, | 9 |
| 1983, an amount equal to
all social security benefits | 10 |
| and railroad retirement benefits included in
such | 11 |
| total pursuant to Sections 72(r) and 86 of the Internal | 12 |
| Revenue Code;
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| (M) With the exception of any amounts subtracted | 14 |
| under subparagraph
(N), an amount equal to the sum of | 15 |
| all amounts disallowed as
deductions by (i) Sections | 16 |
| 171(a) (2), and 265(2) of the Internal Revenue Code
of | 17 |
| 1954, as now or hereafter amended, and all amounts of | 18 |
| expenses allocable
to interest and disallowed as | 19 |
| deductions by Section 265(1) of the Internal
Revenue | 20 |
| Code of 1954, as now or hereafter amended;
and (ii) for | 21 |
| taxable years
ending on or after August 13, 1999, | 22 |
| Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 23 |
| the Internal Revenue Code; the provisions of this
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| subparagraph are exempt from the provisions of Section | 25 |
| 250;
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| (N) An amount equal to all amounts included in such | 27 |
| total which are
exempt from taxation by this State | 28 |
| either by reason of its statutes or
Constitution
or by | 29 |
| reason of the Constitution, treaties or statutes of the | 30 |
| United States;
provided that, in the case of any | 31 |
| statute of this State that exempts income
derived from | 32 |
| bonds or other obligations from the tax imposed under | 33 |
| this Act,
the amount exempted shall be the interest net | 34 |
| of bond premium amortization;
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| (O) An amount equal to any contribution made to a | 36 |
| job training
project established pursuant to the Tax |
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| Increment Allocation Redevelopment Act;
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| (P) An amount equal to the amount of the deduction | 3 |
| used to compute the
federal income tax credit for | 4 |
| restoration of substantial amounts held under
claim of | 5 |
| right for the taxable year pursuant to Section 1341 of | 6 |
| the
Internal Revenue Code of 1986;
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| (Q) An amount equal to any amounts included in such | 8 |
| total, received by
the taxpayer as an acceleration in | 9 |
| the payment of life, endowment or annuity
benefits in | 10 |
| advance of the time they would otherwise be payable as | 11 |
| an indemnity
for a terminal illness;
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| (R) An amount equal to the amount of any federal or | 13 |
| State bonus paid
to veterans of the Persian Gulf War;
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| (S) An amount, to the extent included in adjusted | 15 |
| gross income, equal
to the amount of a contribution | 16 |
| made in the taxable year on behalf of the
taxpayer to a | 17 |
| medical care savings account established under the | 18 |
| Medical Care
Savings Account Act or the Medical Care | 19 |
| Savings Account Act of 2000 to the
extent the | 20 |
| contribution is accepted by the account
administrator | 21 |
| as provided in that Act;
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| (T) An amount, to the extent included in adjusted | 23 |
| gross income, equal to
the amount of interest earned in | 24 |
| the taxable year on a medical care savings
account | 25 |
| established under the Medical Care Savings Account Act | 26 |
| or the Medical
Care Savings Account Act of 2000 on | 27 |
| behalf of the
taxpayer, other than interest added | 28 |
| pursuant to item (D-5) of this paragraph
(2);
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| (U) For one taxable year beginning on or after | 30 |
| January 1,
1994, an
amount equal to the total amount of | 31 |
| tax imposed and paid under subsections (a)
and (b) of | 32 |
| Section 201 of this Act on grant amounts received by | 33 |
| the taxpayer
under the Nursing Home Grant Assistance | 34 |
| Act during the taxpayer's taxable years
1992 and 1993;
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| (V) Beginning with tax years ending on or after | 36 |
| December 31, 1995 and
ending with tax years ending on |
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| or before December 31, 2004, an amount equal to
the | 2 |
| amount paid by a taxpayer who is a
self-employed | 3 |
| taxpayer, a partner of a partnership, or a
shareholder | 4 |
| in a Subchapter S corporation for health insurance or | 5 |
| long-term
care insurance for that taxpayer or that | 6 |
| taxpayer's spouse or dependents, to
the extent that the | 7 |
| amount paid for that health insurance or long-term care
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| insurance may be deducted under Section 213 of the | 9 |
| Internal Revenue Code of
1986, has not been deducted on | 10 |
| the federal income tax return of the taxpayer,
and does | 11 |
| not exceed the taxable income attributable to that | 12 |
| taxpayer's income,
self-employment income, or | 13 |
| Subchapter S corporation income; except that no
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| deduction shall be allowed under this item (V) if the | 15 |
| taxpayer is eligible to
participate in any health | 16 |
| insurance or long-term care insurance plan of an
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| employer of the taxpayer or the taxpayer's
spouse. The | 18 |
| amount of the health insurance and long-term care | 19 |
| insurance
subtracted under this item (V) shall be | 20 |
| determined by multiplying total
health insurance and | 21 |
| long-term care insurance premiums paid by the taxpayer
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| times a number that represents the fractional | 23 |
| percentage of eligible medical
expenses under Section | 24 |
| 213 of the Internal Revenue Code of 1986 not actually
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| deducted on the taxpayer's federal income tax return;
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| (W) For taxable years beginning on or after January | 27 |
| 1, 1998,
all amounts included in the taxpayer's federal | 28 |
| gross income
in the taxable year from amounts converted | 29 |
| from a regular IRA to a Roth IRA.
This paragraph is | 30 |
| exempt from the provisions of Section
250;
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| (X) For taxable year 1999 and thereafter, an amount | 32 |
| equal to the
amount of any (i) distributions, to the | 33 |
| extent includible in gross income for
federal income | 34 |
| tax purposes, made to the taxpayer because of his or | 35 |
| her status
as a victim of persecution for racial or | 36 |
| religious reasons by Nazi Germany or
any other Axis |
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| regime or as an heir of the victim and (ii) items
of | 2 |
| income, to the extent
includible in gross income for | 3 |
| federal income tax purposes, attributable to,
derived | 4 |
| from or in any way related to assets stolen from, | 5 |
| hidden from, or
otherwise lost to a victim of
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| persecution for racial or religious reasons by Nazi | 7 |
| Germany or any other Axis
regime immediately prior to, | 8 |
| during, and immediately after World War II,
including, | 9 |
| but
not limited to, interest on the proceeds receivable | 10 |
| as insurance
under policies issued to a victim of | 11 |
| persecution for racial or religious
reasons
by Nazi | 12 |
| Germany or any other Axis regime by European insurance | 13 |
| companies
immediately prior to and during World War II;
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| provided, however, this subtraction from federal | 15 |
| adjusted gross income does not
apply to assets acquired | 16 |
| with such assets or with the proceeds from the sale of
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| such assets; provided, further, this paragraph shall | 18 |
| only apply to a taxpayer
who was the first recipient of | 19 |
| such assets after their recovery and who is a
victim of | 20 |
| persecution for racial or religious reasons
by Nazi | 21 |
| Germany or any other Axis regime or as an heir of the | 22 |
| victim. The
amount of and the eligibility for any | 23 |
| public assistance, benefit, or
similar entitlement is | 24 |
| not affected by the inclusion of items (i) and (ii) of
| 25 |
| this paragraph in gross income for federal income tax | 26 |
| purposes.
This paragraph is exempt from the provisions | 27 |
| of Section 250;
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| (Y) For taxable years beginning on or after January | 29 |
| 1, 2002,
moneys contributed in the taxable year to a | 30 |
| College Savings Pool account under
Section 16.5 of the | 31 |
| State Treasurer Act, except that amounts excluded from
| 32 |
| gross income under Section 529(c)(3) (C) (i) of the | 33 |
| Internal Revenue Code
shall not be considered moneys | 34 |
| contributed under this subparagraph (Y). This
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| subparagraph (Y) is exempt from the provisions of | 36 |
| Section 250;
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| (Z) For taxable years 2001 and thereafter, for the | 2 |
| taxable year in
which the bonus depreciation deduction | 3 |
| (30% of the adjusted basis of the
qualified property) | 4 |
| is taken on the taxpayer's federal income tax return | 5 |
| under
subsection (k) of Section 168 of the Internal | 6 |
| Revenue Code and for each
applicable taxable year | 7 |
| thereafter, an amount equal to "x", where:
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| (1) "y" equals the amount of the depreciation | 9 |
| deduction taken for the
taxable year
on the | 10 |
| taxpayer's federal income tax return on property | 11 |
| for which the bonus
depreciation deduction (30% of | 12 |
| the adjusted basis of the qualified property)
was | 13 |
| taken in any year under subsection (k) of Section | 14 |
| 168 of the Internal
Revenue Code, but not including | 15 |
| the bonus depreciation deduction; and
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| (2) "x" equals "y" multiplied by 30 and then | 17 |
| divided by 70 (or "y"
multiplied by 0.429).
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| The aggregate amount deducted under this | 19 |
| subparagraph in all taxable
years for any one piece of | 20 |
| property may not exceed the amount of the bonus
| 21 |
| depreciation deduction (30% of the adjusted basis of | 22 |
| the qualified property)
taken on that property on the | 23 |
| taxpayer's federal income tax return under
subsection | 24 |
| (k) of Section 168 of the Internal Revenue Code; and
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| (AA) If the taxpayer reports a capital gain or loss | 26 |
| on the taxpayer's
federal income tax return for the | 27 |
| taxable year based on a sale or transfer of
property | 28 |
| for which the taxpayer was required in any taxable year | 29 |
| to make an
addition modification under subparagraph | 30 |
| (D-15), then an amount equal to that
addition | 31 |
| modification.
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| The taxpayer is allowed to take the deduction under | 33 |
| this subparagraph
only once with respect to any one | 34 |
| piece of property; and
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| (BB)
(Z) Any amount included in adjusted gross | 36 |
| income, other
than
salary,
received by a driver in a |
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| ridesharing arrangement using a motor vehicle.
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| (b) Corporations.
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| (1) In general. In the case of a corporation, base | 4 |
| income means an
amount equal to the taxpayer's taxable | 5 |
| income for the taxable year as
modified by paragraph (2).
| 6 |
| (2) Modifications. The taxable income referred to in | 7 |
| paragraph (1)
shall be modified by adding thereto the sum | 8 |
| of the following amounts:
| 9 |
| (A) An amount equal to all amounts paid or accrued | 10 |
| to the taxpayer
as interest and all distributions | 11 |
| received from regulated investment
companies during | 12 |
| the taxable year to the extent excluded from gross
| 13 |
| income in the computation of taxable income;
| 14 |
| (B) An amount equal to the amount of tax imposed by | 15 |
| this Act to the
extent deducted from gross income in | 16 |
| the computation of taxable income
for the taxable year;
| 17 |
| (C) In the case of a regulated investment company, | 18 |
| an amount equal to
the excess of (i) the net long-term | 19 |
| capital gain for the taxable year, over
(ii) the amount | 20 |
| of the capital gain dividends designated as such in | 21 |
| accordance
with Section 852(b)(3)(C) of the Internal | 22 |
| Revenue Code and any amount
designated under Section | 23 |
| 852(b)(3)(D) of the Internal Revenue Code,
| 24 |
| attributable to the taxable year (this amendatory Act | 25 |
| of 1995
(Public Act 89-89) is declarative of existing | 26 |
| law and is not a new
enactment);
| 27 |
| (D) The amount of any net operating loss deduction | 28 |
| taken in arriving
at taxable income, other than a net | 29 |
| operating loss carried forward from a
taxable year | 30 |
| ending prior to December 31, 1986;
| 31 |
| (E) For taxable years in which a net operating loss | 32 |
| carryback or
carryforward from a taxable year ending | 33 |
| prior to December 31, 1986 is an
element of taxable | 34 |
| income under paragraph (1) of subsection (e) or
| 35 |
| subparagraph (E) of paragraph (2) of subsection (e), |
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| the amount by which
addition modifications other than | 2 |
| those provided by this subparagraph (E)
exceeded | 3 |
| subtraction modifications in such earlier taxable | 4 |
| year, with the
following limitations applied in the | 5 |
| order that they are listed:
| 6 |
| (i) the addition modification relating to the | 7 |
| net operating loss
carried back or forward to the | 8 |
| taxable year from any taxable year ending
prior to | 9 |
| December 31, 1986 shall be reduced by the amount of | 10 |
| addition
modification under this subparagraph (E) | 11 |
| which related to that net operating
loss and which | 12 |
| was taken into account in calculating the base | 13 |
| income of an
earlier taxable year, and
| 14 |
| (ii) the addition modification relating to the | 15 |
| net operating loss
carried back or forward to the | 16 |
| taxable year from any taxable year ending
prior to | 17 |
| December 31, 1986 shall not exceed the amount of | 18 |
| such carryback or
carryforward;
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| For taxable years in which there is a net operating | 20 |
| loss carryback or
carryforward from more than one other | 21 |
| taxable year ending prior to December
31, 1986, the | 22 |
| addition modification provided in this subparagraph | 23 |
| (E) shall
be the sum of the amounts computed | 24 |
| independently under the preceding
provisions of this | 25 |
| subparagraph (E) for each such taxable year;
| 26 |
| (E-5) For taxable years ending after December 31, | 27 |
| 1997, an
amount equal to any eligible remediation costs | 28 |
| that the corporation
deducted in computing adjusted | 29 |
| gross income and for which the
corporation claims a | 30 |
| credit under subsection (l) of Section 201;
| 31 |
| (E-10) For taxable years 2001 and thereafter, an | 32 |
| amount equal to the
bonus depreciation deduction (30% | 33 |
| of the adjusted basis of the qualified
property) taken | 34 |
| on the taxpayer's federal income tax return for the | 35 |
| taxable
year under subsection (k) of Section 168 of the | 36 |
| Internal Revenue Code; and
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| (E-11) If the taxpayer reports a capital gain or | 2 |
| loss on the
taxpayer's federal income tax return for | 3 |
| the taxable year based on a sale or
transfer of | 4 |
| property for which the taxpayer was required in any | 5 |
| taxable year to
make an addition modification under | 6 |
| subparagraph (E-10), then an amount equal
to the | 7 |
| aggregate amount of the deductions taken in all taxable
| 8 |
| years under subparagraph (T) with respect to that | 9 |
| property . ;
| 10 |
| The taxpayer is required to make the addition | 11 |
| modification under this
subparagraph
only once with | 12 |
| respect to any one piece of property;
| 13 |
| and by deducting from the total so obtained the sum of the | 14 |
| following
amounts:
| 15 |
| (F) An amount equal to the amount of any tax | 16 |
| imposed by this Act
which was refunded to the taxpayer | 17 |
| and included in such total for the
taxable year;
| 18 |
| (G) An amount equal to any amount included in such | 19 |
| total under
Section 78 of the Internal Revenue Code;
| 20 |
| (H) In the case of a regulated investment company, | 21 |
| an amount equal
to the amount of exempt interest | 22 |
| dividends as defined in subsection (b)
(5) of Section | 23 |
| 852 of the Internal Revenue Code, paid to shareholders
| 24 |
| for the taxable year;
| 25 |
| (I) With the exception of any amounts subtracted | 26 |
| under subparagraph
(J),
an amount equal to the sum of | 27 |
| all amounts disallowed as
deductions by (i) Sections | 28 |
| 171(a) (2), and 265(a)(2) and amounts disallowed as
| 29 |
| interest expense by Section 291(a)(3) of the Internal | 30 |
| Revenue Code, as now
or hereafter amended, and all | 31 |
| amounts of expenses allocable to interest and
| 32 |
| disallowed as deductions by Section 265(a)(1) of the | 33 |
| Internal Revenue Code,
as now or hereafter amended;
and | 34 |
| (ii) for taxable years
ending on or after August 13, | 35 |
| 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and | 36 |
| 832(b)(5)(B)(i) of the Internal Revenue Code; the
|
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| provisions of this
subparagraph are exempt from the | 2 |
| provisions of Section 250;
| 3 |
| (J) An amount equal to all amounts included in such | 4 |
| total which are
exempt from taxation by this State | 5 |
| either by reason of its statutes or
Constitution
or by | 6 |
| reason of the Constitution, treaties or statutes of the | 7 |
| United States;
provided that, in the case of any | 8 |
| statute of this State that exempts income
derived from | 9 |
| bonds or other obligations from the tax imposed under | 10 |
| this Act,
the amount exempted shall be the interest net | 11 |
| of bond premium amortization;
| 12 |
| (K) An amount equal to those dividends included in | 13 |
| such total
which were paid by a corporation which | 14 |
| conducts
business operations in an Enterprise Zone or | 15 |
| zones created under
the Illinois Enterprise Zone Act | 16 |
| and conducts substantially all of its
operations in an | 17 |
| Enterprise Zone or zones;
| 18 |
| (L) An amount equal to those dividends included in | 19 |
| such total that
were paid by a corporation that | 20 |
| conducts business operations in a federally
designated | 21 |
| Foreign Trade Zone or Sub-Zone and that is designated a | 22 |
| High Impact
Business located in Illinois; provided | 23 |
| that dividends eligible for the
deduction provided in | 24 |
| subparagraph (K) of paragraph 2 of this subsection
| 25 |
| shall not be eligible for the deduction provided under | 26 |
| this subparagraph
(L);
| 27 |
| (M) For any taxpayer that is a financial | 28 |
| organization within the meaning
of Section 304(c) of | 29 |
| this Act, an amount included in such total as interest
| 30 |
| income from a loan or loans made by such taxpayer to a | 31 |
| borrower, to the extent
that such a loan is secured by | 32 |
| property which is eligible for the Enterprise
Zone | 33 |
| Investment Credit. To determine the portion of a loan | 34 |
| or loans that is
secured by property eligible for a | 35 |
| Section 201(f) investment
credit to the borrower, the | 36 |
| entire principal amount of the loan or loans
between |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| the taxpayer and the borrower should be divided into | 2 |
| the basis of the
Section 201(f) investment credit | 3 |
| property which secures the
loan or loans, using for | 4 |
| this purpose the original basis of such property on
the | 5 |
| date that it was placed in service in the
Enterprise | 6 |
| Zone. The subtraction modification available to | 7 |
| taxpayer in any
year under this subsection shall be | 8 |
| that portion of the total interest paid
by the borrower | 9 |
| with respect to such loan attributable to the eligible
| 10 |
| property as calculated under the previous sentence;
| 11 |
| (M-1) For any taxpayer that is a financial | 12 |
| organization within the
meaning of Section 304(c) of | 13 |
| this Act, an amount included in such total as
interest | 14 |
| income from a loan or loans made by such taxpayer to a | 15 |
| borrower,
to the extent that such a loan is secured by | 16 |
| property which is eligible for
the High Impact Business | 17 |
| Investment Credit. To determine the portion of a
loan | 18 |
| or loans that is secured by property eligible for a | 19 |
| Section 201(h) investment credit to the borrower, the | 20 |
| entire principal amount of
the loan or loans between | 21 |
| the taxpayer and the borrower should be divided into
| 22 |
| the basis of the Section 201(h) investment credit | 23 |
| property which
secures the loan or loans, using for | 24 |
| this purpose the original basis of such
property on the | 25 |
| date that it was placed in service in a federally | 26 |
| designated
Foreign Trade Zone or Sub-Zone located in | 27 |
| Illinois. No taxpayer that is
eligible for the | 28 |
| deduction provided in subparagraph (M) of paragraph | 29 |
| (2) of
this subsection shall be eligible for the | 30 |
| deduction provided under this
subparagraph (M-1). The | 31 |
| subtraction modification available to taxpayers in
any | 32 |
| year under this subsection shall be that portion of the | 33 |
| total interest
paid by the borrower with respect to | 34 |
| such loan attributable to the eligible
property as | 35 |
| calculated under the previous sentence;
| 36 |
| (N) Two times any contribution made during the |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| taxable year to a
designated zone organization to the | 2 |
| extent that the contribution (i)
qualifies as a | 3 |
| charitable contribution under subsection (c) of | 4 |
| Section 170
of the Internal Revenue Code and (ii) must, | 5 |
| by its terms, be used for a
project approved by the | 6 |
| Department of Commerce and Economic Opportunity
| 7 |
| Community Affairs under Section 11 of the Illinois | 8 |
| Enterprise Zone Act;
| 9 |
| (O) An amount equal to: (i) 85% for taxable years | 10 |
| ending on or before
December 31, 1992, or, a percentage | 11 |
| equal to the percentage allowable under
Section | 12 |
| 243(a)(1) of the Internal Revenue Code of 1986 for | 13 |
| taxable years ending
after December 31, 1992, of the | 14 |
| amount by which dividends included in taxable
income | 15 |
| and received from a corporation that is not created or | 16 |
| organized under
the laws of the United States or any | 17 |
| state or political subdivision thereof,
including, for | 18 |
| taxable years ending on or after December 31, 1988, | 19 |
| dividends
received or deemed received or paid or deemed | 20 |
| paid under Sections 951 through
964 of the Internal | 21 |
| Revenue Code, exceed the amount of the modification
| 22 |
| provided under subparagraph (G) of paragraph (2) of | 23 |
| this subsection (b) which
is related to such dividends; | 24 |
| plus (ii) 100% of the amount by which dividends,
| 25 |
| included in taxable income and received, including, | 26 |
| for taxable years ending on
or after December 31, 1988, | 27 |
| dividends received or deemed received or paid or
deemed | 28 |
| paid under Sections 951 through 964 of the Internal | 29 |
| Revenue Code, from
any such corporation specified in | 30 |
| clause (i) that would but for the provisions
of Section | 31 |
| 1504 (b) (3) of the Internal Revenue Code be treated as | 32 |
| a member of
the affiliated group which includes the | 33 |
| dividend recipient, exceed the amount
of the | 34 |
| modification provided under subparagraph (G) of | 35 |
| paragraph (2) of this
subsection (b) which is related | 36 |
| to such dividends;
|
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| (P) An amount equal to any contribution made to a | 2 |
| job training project
established pursuant to the Tax | 3 |
| Increment Allocation Redevelopment Act;
| 4 |
| (Q) An amount equal to the amount of the deduction | 5 |
| used to compute the
federal income tax credit for | 6 |
| restoration of substantial amounts held under
claim of | 7 |
| right for the taxable year pursuant to Section 1341 of | 8 |
| the
Internal Revenue Code of 1986;
| 9 |
| (R) In the case of an attorney-in-fact with respect | 10 |
| to whom an
interinsurer or a reciprocal insurer has | 11 |
| made the election under Section 835 of
the Internal | 12 |
| Revenue Code, 26 U.S.C. 835, an amount equal to the | 13 |
| excess, if
any, of the amounts paid or incurred by that | 14 |
| interinsurer or reciprocal insurer
in the taxable year | 15 |
| to the attorney-in-fact over the deduction allowed to | 16 |
| that
interinsurer or reciprocal insurer with respect | 17 |
| to the attorney-in-fact under
Section 835(b) of the | 18 |
| Internal Revenue Code for the taxable year;
| 19 |
| (S) For taxable years ending on or after December | 20 |
| 31, 1997, in the
case of a Subchapter
S corporation, an | 21 |
| amount equal to all amounts of income allocable to a
| 22 |
| shareholder subject to the Personal Property Tax | 23 |
| Replacement Income Tax imposed
by subsections (c) and | 24 |
| (d) of Section 201 of this Act, including amounts
| 25 |
| allocable to organizations exempt from federal income | 26 |
| tax by reason of Section
501(a) of the Internal Revenue | 27 |
| Code. This subparagraph (S) is exempt from
the | 28 |
| provisions of Section 250;
| 29 |
| (T) For taxable years 2001 and thereafter, for the | 30 |
| taxable year in
which the bonus depreciation deduction | 31 |
| (30% of the adjusted basis of the
qualified property) | 32 |
| is taken on the taxpayer's federal income tax return | 33 |
| under
subsection (k) of Section 168 of the Internal | 34 |
| Revenue Code and for each
applicable taxable year | 35 |
| thereafter, an amount equal to "x", where:
| 36 |
| (1) "y" equals the amount of the depreciation |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| deduction taken for the
taxable year
on the | 2 |
| taxpayer's federal income tax return on property | 3 |
| for which the bonus
depreciation deduction (30% of | 4 |
| the adjusted basis of the qualified property)
was | 5 |
| taken in any year under subsection (k) of Section | 6 |
| 168 of the Internal
Revenue Code, but not including | 7 |
| the bonus depreciation deduction; and
| 8 |
| (2) "x" equals "y" multiplied by 30 and then | 9 |
| divided by 70 (or "y"
multiplied by 0.429).
| 10 |
| The aggregate amount deducted under this | 11 |
| subparagraph in all taxable
years for any one piece of | 12 |
| property may not exceed the amount of the bonus
| 13 |
| depreciation deduction (30% of the adjusted basis of | 14 |
| the qualified property)
taken on that property on the | 15 |
| taxpayer's federal income tax return under
subsection | 16 |
| (k) of Section 168 of the Internal Revenue Code; and
| 17 |
| (U) If the taxpayer reports a capital gain or loss | 18 |
| on the taxpayer's
federal income tax return for the | 19 |
| taxable year based on a sale or transfer of
property | 20 |
| for which the taxpayer was required in any taxable year | 21 |
| to make an
addition modification under subparagraph | 22 |
| (E-10), then an amount equal to that
addition | 23 |
| modification.
| 24 |
| The taxpayer is allowed to take the deduction under | 25 |
| this subparagraph
only once with respect to any one | 26 |
| piece of property ; and .
| 27 |
| (V) An amount equal to all amounts paid to Illinois | 28 |
| research institutions during the taxable year for the | 29 |
| purpose of fostering research and development in high | 30 |
| technology leading to the development of new products | 31 |
| and services that can be marketed by Illinois | 32 |
| businesses. For the purpose of this deduction, "high | 33 |
| technology" means any area of research or development | 34 |
| designed to foster greater knowledge or understanding | 35 |
| in fields such as computer science, electronics, | 36 |
| telecommunications, physics, chemistry, or biology for |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| the purpose of producing, designing, developing, or | 2 |
| improving prototypes and new processes. "Illinois | 3 |
| research institutions" means Illinois universities, | 4 |
| community colleges, research consortiums, and other | 5 |
| not for profit entities, including federally funded | 6 |
| research laboratories, that conduct research and | 7 |
| development activities for the purpose of producing, | 8 |
| designing, developing, or improving prototypes and new | 9 |
| processes.
| 10 |
| (3) Special rule. For purposes of paragraph (2) (A), | 11 |
| "gross income"
in the case of a life insurance company, for | 12 |
| tax years ending on and after
December 31, 1994,
shall mean | 13 |
| the gross investment income for the taxable year.
| 14 |
| (c) Trusts and estates.
| 15 |
| (1) In general. In the case of a trust or estate, base | 16 |
| income means
an amount equal to the taxpayer's taxable | 17 |
| income for the taxable year as
modified by paragraph (2).
| 18 |
| (2) Modifications. Subject to the provisions of | 19 |
| paragraph (3), the
taxable income referred to in paragraph | 20 |
| (1) shall be modified by adding
thereto the sum of the | 21 |
| following amounts:
| 22 |
| (A) An amount equal to all amounts paid or accrued | 23 |
| to the taxpayer
as interest or dividends during the | 24 |
| taxable year to the extent excluded
from gross income | 25 |
| in the computation of taxable income;
| 26 |
| (B) In the case of (i) an estate, $600; (ii) a | 27 |
| trust which, under
its governing instrument, is | 28 |
| required to distribute all of its income
currently, | 29 |
| $300; and (iii) any other trust, $100, but in each such | 30 |
| case,
only to the extent such amount was deducted in | 31 |
| the computation of
taxable income;
| 32 |
| (C) An amount equal to the amount of tax imposed by | 33 |
| this Act to the
extent deducted from gross income in | 34 |
| the computation of taxable income
for the taxable year;
| 35 |
| (D) The amount of any net operating loss deduction |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| taken in arriving at
taxable income, other than a net | 2 |
| operating loss carried forward from a
taxable year | 3 |
| ending prior to December 31, 1986;
| 4 |
| (E) For taxable years in which a net operating loss | 5 |
| carryback or
carryforward from a taxable year ending | 6 |
| prior to December 31, 1986 is an
element of taxable | 7 |
| income under paragraph (1) of subsection (e) or | 8 |
| subparagraph
(E) of paragraph (2) of subsection (e), | 9 |
| the amount by which addition
modifications other than | 10 |
| those provided by this subparagraph (E) exceeded
| 11 |
| subtraction modifications in such taxable year, with | 12 |
| the following limitations
applied in the order that | 13 |
| they are listed:
| 14 |
| (i) the addition modification relating to the | 15 |
| net operating loss
carried back or forward to the | 16 |
| taxable year from any taxable year ending
prior to | 17 |
| December 31, 1986 shall be reduced by the amount of | 18 |
| addition
modification under this subparagraph (E) | 19 |
| which related to that net
operating loss and which | 20 |
| was taken into account in calculating the base
| 21 |
| income of an earlier taxable year, and
| 22 |
| (ii) the addition modification relating to the | 23 |
| net operating loss
carried back or forward to the | 24 |
| taxable year from any taxable year ending
prior to | 25 |
| December 31, 1986 shall not exceed the amount of | 26 |
| such carryback or
carryforward;
| 27 |
| For taxable years in which there is a net operating | 28 |
| loss carryback or
carryforward from more than one other | 29 |
| taxable year ending prior to December
31, 1986, the | 30 |
| addition modification provided in this subparagraph | 31 |
| (E) shall
be the sum of the amounts computed | 32 |
| independently under the preceding
provisions of this | 33 |
| subparagraph (E) for each such taxable year;
| 34 |
| (F) For taxable years ending on or after January 1, | 35 |
| 1989, an amount
equal to the tax deducted pursuant to | 36 |
| Section 164 of the Internal Revenue
Code if the trust |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| or estate is claiming the same tax for purposes of the
| 2 |
| Illinois foreign tax credit under Section 601 of this | 3 |
| Act;
| 4 |
| (G) An amount equal to the amount of the capital | 5 |
| gain deduction
allowable under the Internal Revenue | 6 |
| Code, to the extent deducted from
gross income in the | 7 |
| computation of taxable income;
| 8 |
| (G-5) For taxable years ending after December 31, | 9 |
| 1997, an
amount equal to any eligible remediation costs | 10 |
| that the trust or estate
deducted in computing adjusted | 11 |
| gross income and for which the trust
or estate claims a | 12 |
| credit under subsection (l) of Section 201;
| 13 |
| (G-10) For taxable years 2001 and thereafter, an | 14 |
| amount equal to the
bonus depreciation deduction (30% | 15 |
| of the adjusted basis of the qualified
property) taken | 16 |
| on the taxpayer's federal income tax return for the | 17 |
| taxable
year under subsection (k) of Section 168 of the | 18 |
| Internal Revenue Code; and
| 19 |
| (G-11) If the taxpayer reports a capital gain or | 20 |
| loss on the
taxpayer's federal income tax return for | 21 |
| the taxable year based on a sale or
transfer of | 22 |
| property for which the taxpayer was required in any | 23 |
| taxable year to
make an addition modification under | 24 |
| subparagraph (G-10), then an amount equal
to the | 25 |
| aggregate amount of the deductions taken in all taxable
| 26 |
| years under subparagraph (R) with respect to that | 27 |
| property . ;
| 28 |
| The taxpayer is required to make the addition | 29 |
| modification under this
subparagraph
only once with | 30 |
| respect to any one piece of property;
| 31 |
| and by deducting from the total so obtained the sum of the | 32 |
| following
amounts:
| 33 |
| (H) An amount equal to all amounts included in such | 34 |
| total pursuant
to the provisions of Sections 402(a), | 35 |
| 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | 36 |
| Internal Revenue Code or included in such total as
|
|
|
|
SB3081 |
- 21 - |
LRB093 19351 SJM 45087 b |
|
| 1 |
| distributions under the provisions of any retirement | 2 |
| or disability plan for
employees of any governmental | 3 |
| agency or unit, or retirement payments to
retired | 4 |
| partners, which payments are excluded in computing net | 5 |
| earnings
from self employment by Section 1402 of the | 6 |
| Internal Revenue Code and
regulations adopted pursuant | 7 |
| thereto;
| 8 |
| (I) The valuation limitation amount;
| 9 |
| (J) An amount equal to the amount of any tax | 10 |
| imposed by this Act
which was refunded to the taxpayer | 11 |
| and included in such total for the
taxable year;
| 12 |
| (K) An amount equal to all amounts included in | 13 |
| taxable income as
modified by subparagraphs (A), (B), | 14 |
| (C), (D), (E), (F) and (G) which
are exempt from | 15 |
| taxation by this State either by reason of its statutes | 16 |
| or
Constitution
or by reason of the Constitution, | 17 |
| treaties or statutes of the United States;
provided | 18 |
| that, in the case of any statute of this State that | 19 |
| exempts income
derived from bonds or other obligations | 20 |
| from the tax imposed under this Act,
the amount | 21 |
| exempted shall be the interest net of bond premium | 22 |
| amortization;
| 23 |
| (L) With the exception of any amounts subtracted | 24 |
| under subparagraph
(K),
an amount equal to the sum of | 25 |
| all amounts disallowed as
deductions by (i) Sections | 26 |
| 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | 27 |
| as now or hereafter amended, and all amounts of | 28 |
| expenses allocable
to interest and disallowed as | 29 |
| deductions by Section 265(1) of the Internal
Revenue | 30 |
| Code of 1954, as now or hereafter amended;
and (ii) for | 31 |
| taxable years
ending on or after August 13, 1999, | 32 |
| Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of | 33 |
| the Internal Revenue Code; the provisions of this
| 34 |
| subparagraph are exempt from the provisions of Section | 35 |
| 250;
| 36 |
| (M) An amount equal to those dividends included in |
|
|
|
SB3081 |
- 22 - |
LRB093 19351 SJM 45087 b |
|
| 1 |
| such total
which were paid by a corporation which | 2 |
| conducts business operations in an
Enterprise Zone or | 3 |
| zones created under the Illinois Enterprise Zone Act | 4 |
| and
conducts substantially all of its operations in an | 5 |
| Enterprise Zone or Zones;
| 6 |
| (N) An amount equal to any contribution made to a | 7 |
| job training
project established pursuant to the Tax | 8 |
| Increment Allocation
Redevelopment Act;
| 9 |
| (O) An amount equal to those dividends included in | 10 |
| such total
that were paid by a corporation that | 11 |
| conducts business operations in a
federally designated | 12 |
| Foreign Trade Zone or Sub-Zone and that is designated
a | 13 |
| High Impact Business located in Illinois; provided | 14 |
| that dividends eligible
for the deduction provided in | 15 |
| subparagraph (M) of paragraph (2) of this
subsection | 16 |
| shall not be eligible for the deduction provided under | 17 |
| this
subparagraph (O);
| 18 |
| (P) An amount equal to the amount of the deduction | 19 |
| used to compute the
federal income tax credit for | 20 |
| restoration of substantial amounts held under
claim of | 21 |
| right for the taxable year pursuant to Section 1341 of | 22 |
| the
Internal Revenue Code of 1986;
| 23 |
| (Q) For taxable year 1999 and thereafter, an amount | 24 |
| equal to the
amount of any
(i) distributions, to the | 25 |
| extent includible in gross income for
federal income | 26 |
| tax purposes, made to the taxpayer because of
his or | 27 |
| her status as a victim of
persecution for racial or | 28 |
| religious reasons by Nazi Germany or any other Axis
| 29 |
| regime or as an heir of the victim and (ii) items
of | 30 |
| income, to the extent
includible in gross income for | 31 |
| federal income tax purposes, attributable to,
derived | 32 |
| from or in any way related to assets stolen from, | 33 |
| hidden from, or
otherwise lost to a victim of
| 34 |
| persecution for racial or religious reasons by Nazi
| 35 |
| Germany or any other Axis regime
immediately prior to, | 36 |
| during, and immediately after World War II, including,
|
|
|
|
SB3081 |
- 23 - |
LRB093 19351 SJM 45087 b |
|
| 1 |
| but
not limited to, interest on the proceeds receivable | 2 |
| as insurance
under policies issued to a victim of | 3 |
| persecution for racial or religious
reasons by Nazi | 4 |
| Germany or any other Axis regime by European insurance
| 5 |
| companies
immediately prior to and during World War II;
| 6 |
| provided, however, this subtraction from federal | 7 |
| adjusted gross income does not
apply to assets acquired | 8 |
| with such assets or with the proceeds from the sale of
| 9 |
| such assets; provided, further, this paragraph shall | 10 |
| only apply to a taxpayer
who was the first recipient of | 11 |
| such assets after their recovery and who is a
victim of
| 12 |
| persecution for racial or religious reasons
by Nazi | 13 |
| Germany or any other Axis regime or as an heir of the | 14 |
| victim. The
amount of and the eligibility for any | 15 |
| public assistance, benefit, or
similar entitlement is | 16 |
| not affected by the inclusion of items (i) and (ii) of
| 17 |
| this paragraph in gross income for federal income tax | 18 |
| purposes.
This paragraph is exempt from the provisions | 19 |
| of Section 250;
| 20 |
| (R) For taxable years 2001 and thereafter, for the | 21 |
| taxable year in
which the bonus depreciation deduction | 22 |
| (30% of the adjusted basis of the
qualified property) | 23 |
| is taken on the taxpayer's federal income tax return | 24 |
| under
subsection (k) of Section 168 of the Internal | 25 |
| Revenue Code and for each
applicable taxable year | 26 |
| thereafter, an amount equal to "x", where:
| 27 |
| (1) "y" equals the amount of the depreciation | 28 |
| deduction taken for the
taxable year
on the | 29 |
| taxpayer's federal income tax return on property | 30 |
| for which the bonus
depreciation deduction (30% of | 31 |
| the adjusted basis of the qualified property)
was | 32 |
| taken in any year under subsection (k) of Section | 33 |
| 168 of the Internal
Revenue Code, but not including | 34 |
| the bonus depreciation deduction; and
| 35 |
| (2) "x" equals "y" multiplied by 30 and then | 36 |
| divided by 70 (or "y"
multiplied by 0.429).
|
|
|
|
SB3081 |
- 24 - |
LRB093 19351 SJM 45087 b |
|
| 1 |
| The aggregate amount deducted under this | 2 |
| subparagraph in all taxable
years for any one piece of | 3 |
| property may not exceed the amount of the bonus
| 4 |
| depreciation deduction (30% of the adjusted basis of | 5 |
| the qualified property)
taken on that property on the | 6 |
| taxpayer's federal income tax return under
subsection | 7 |
| (k) of Section 168 of the Internal Revenue Code; and
| 8 |
| (S) If the taxpayer reports a capital gain or loss | 9 |
| on the taxpayer's
federal income tax return for the | 10 |
| taxable year based on a sale or transfer of
property | 11 |
| for which the taxpayer was required in any taxable year | 12 |
| to make an
addition modification under subparagraph | 13 |
| (G-10), then an amount equal to that
addition | 14 |
| modification.
| 15 |
| The taxpayer is allowed to take the deduction under | 16 |
| this subparagraph
only once with respect to any one | 17 |
| piece of property.
| 18 |
| (3) Limitation. The amount of any modification | 19 |
| otherwise required
under this subsection shall, under | 20 |
| regulations prescribed by the
Department, be adjusted by | 21 |
| any amounts included therein which were
properly paid, | 22 |
| credited, or required to be distributed, or permanently set
| 23 |
| aside for charitable purposes pursuant to Internal Revenue | 24 |
| Code Section
642(c) during the taxable year.
| 25 |
| (d) Partnerships.
| 26 |
| (1) In general. In the case of a partnership, base | 27 |
| income means an
amount equal to the taxpayer's taxable | 28 |
| income for the taxable year as
modified by paragraph (2).
| 29 |
| (2) Modifications. The taxable income referred to in | 30 |
| paragraph (1)
shall be modified by adding thereto the sum | 31 |
| of the following amounts:
| 32 |
| (A) An amount equal to all amounts paid or accrued | 33 |
| to the taxpayer as
interest or dividends during the | 34 |
| taxable year to the extent excluded from
gross income | 35 |
| in the computation of taxable income;
|
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| (B) An amount equal to the amount of tax imposed by | 2 |
| this Act to the
extent deducted from gross income for | 3 |
| the taxable year;
| 4 |
| (C) The amount of deductions allowed to the | 5 |
| partnership pursuant to
Section 707 (c) of the Internal | 6 |
| Revenue Code in calculating its taxable income;
| 7 |
| (D) An amount equal to the amount of the capital | 8 |
| gain deduction
allowable under the Internal Revenue | 9 |
| Code, to the extent deducted from
gross income in the | 10 |
| computation of taxable income;
| 11 |
| (D-5) For taxable years 2001 and thereafter, an | 12 |
| amount equal to the
bonus depreciation deduction (30% | 13 |
| of the adjusted basis of the qualified
property) taken | 14 |
| on the taxpayer's federal income tax return for the | 15 |
| taxable
year under subsection (k) of Section 168 of the | 16 |
| Internal Revenue Code; and
| 17 |
| (D-6) If the taxpayer reports a capital gain or | 18 |
| loss on the taxpayer's
federal income tax return for | 19 |
| the taxable year based on a sale or transfer of
| 20 |
| property for which the taxpayer was required in any | 21 |
| taxable year to make an
addition modification under | 22 |
| subparagraph (D-5), then an amount equal to the
| 23 |
| aggregate amount of the deductions taken in all taxable | 24 |
| years
under subparagraph (O) with respect to that | 25 |
| property . ;
| 26 |
| The taxpayer is required to make the addition | 27 |
| modification under this
subparagraph
only once with | 28 |
| respect to any one piece of property;
| 29 |
| and by deducting from the total so obtained the following | 30 |
| amounts:
| 31 |
| (E) The valuation limitation amount;
| 32 |
| (F) An amount equal to the amount of any tax | 33 |
| imposed by this Act which
was refunded to the taxpayer | 34 |
| and included in such total for the taxable year;
| 35 |
| (G) An amount equal to all amounts included in | 36 |
| taxable income as
modified by subparagraphs (A), (B), |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| (C) and (D) which are exempt from
taxation by this | 2 |
| State either by reason of its statutes or Constitution | 3 |
| or
by reason of
the Constitution, treaties or statutes | 4 |
| of the United States;
provided that, in the case of any | 5 |
| statute of this State that exempts income
derived from | 6 |
| bonds or other obligations from the tax imposed under | 7 |
| this Act,
the amount exempted shall be the interest net | 8 |
| of bond premium amortization;
| 9 |
| (H) Any income of the partnership which | 10 |
| constitutes personal service
income as defined in | 11 |
| Section 1348 (b) (1) of the Internal Revenue Code (as
| 12 |
| in effect December 31, 1981) or a reasonable allowance | 13 |
| for compensation
paid or accrued for services rendered | 14 |
| by partners to the partnership,
whichever is greater;
| 15 |
| (I) An amount equal to all amounts of income | 16 |
| distributable to an entity
subject to the Personal | 17 |
| Property Tax Replacement Income Tax imposed by
| 18 |
| subsections (c) and (d) of Section 201 of this Act | 19 |
| including amounts
distributable to organizations | 20 |
| exempt from federal income tax by reason of
Section | 21 |
| 501(a) of the Internal Revenue Code;
| 22 |
| (J) With the exception of any amounts subtracted | 23 |
| under subparagraph
(G),
an amount equal to the sum of | 24 |
| all amounts disallowed as deductions
by (i) Sections | 25 |
| 171(a) (2), and 265(2) of the Internal Revenue Code of | 26 |
| 1954,
as now or hereafter amended, and all amounts of | 27 |
| expenses allocable to
interest and disallowed as | 28 |
| deductions by Section 265(1) of the Internal
Revenue | 29 |
| Code, as now or hereafter amended;
and (ii) for taxable | 30 |
| years
ending on or after August 13, 1999, Sections
| 31 |
| 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | 32 |
| Internal Revenue Code; the provisions of this
| 33 |
| subparagraph are exempt from the provisions of Section | 34 |
| 250;
| 35 |
| (K) An amount equal to those dividends included in | 36 |
| such total which were
paid by a corporation which |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| conducts business operations in an Enterprise
Zone or | 2 |
| zones created under the Illinois Enterprise Zone Act, | 3 |
| enacted by
the 82nd General Assembly, and
conducts | 4 |
| substantially all of its operations
in an Enterprise | 5 |
| Zone or Zones;
| 6 |
| (L) An amount equal to any contribution made to a | 7 |
| job training project
established pursuant to the Real | 8 |
| Property Tax Increment Allocation
Redevelopment Act;
| 9 |
| (M) An amount equal to those dividends included in | 10 |
| such total
that were paid by a corporation that | 11 |
| conducts business operations in a
federally designated | 12 |
| Foreign Trade Zone or Sub-Zone and that is designated a
| 13 |
| High Impact Business located in Illinois; provided | 14 |
| that dividends eligible
for the deduction provided in | 15 |
| subparagraph (K) of paragraph (2) of this
subsection | 16 |
| shall not be eligible for the deduction provided under | 17 |
| this
subparagraph (M);
| 18 |
| (N) An amount equal to the amount of the deduction | 19 |
| used to compute the
federal income tax credit for | 20 |
| restoration of substantial amounts held under
claim of | 21 |
| right for the taxable year pursuant to Section 1341 of | 22 |
| the
Internal Revenue Code of 1986;
| 23 |
| (O) For taxable years 2001 and thereafter, for the | 24 |
| taxable year in
which the bonus depreciation deduction | 25 |
| (30% of the adjusted basis of the
qualified property) | 26 |
| is taken on the taxpayer's federal income tax return | 27 |
| under
subsection (k) of Section 168 of the Internal | 28 |
| Revenue Code and for each
applicable taxable year | 29 |
| thereafter, an amount equal to "x", where:
| 30 |
| (1) "y" equals the amount of the depreciation | 31 |
| deduction taken for the
taxable year
on the | 32 |
| taxpayer's federal income tax return on property | 33 |
| for which the bonus
depreciation deduction (30% of | 34 |
| the adjusted basis of the qualified property)
was | 35 |
| taken in any year under subsection (k) of Section | 36 |
| 168 of the Internal
Revenue Code, but not including |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| the bonus depreciation deduction; and
| 2 |
| (2) "x" equals "y" multiplied by 30 and then | 3 |
| divided by 70 (or "y"
multiplied by 0.429).
| 4 |
| The aggregate amount deducted under this | 5 |
| subparagraph in all taxable
years for any one piece of | 6 |
| property may not exceed the amount of the bonus
| 7 |
| depreciation deduction (30% of the adjusted basis of | 8 |
| the qualified property)
taken on that property on the | 9 |
| taxpayer's federal income tax return under
subsection | 10 |
| (k) of Section 168 of the Internal Revenue Code; and
| 11 |
| (P) If the taxpayer reports a capital gain or loss | 12 |
| on the taxpayer's
federal income tax return for the | 13 |
| taxable year based on a sale or transfer of
property | 14 |
| for which the taxpayer was required in any taxable year | 15 |
| to make an
addition modification under subparagraph | 16 |
| (D-5), then an amount equal to that
addition | 17 |
| modification.
| 18 |
| The taxpayer is allowed to take the deduction under | 19 |
| this subparagraph
only once with respect to any one | 20 |
| piece of property.
| 21 |
| (e) Gross income; adjusted gross income; taxable income.
| 22 |
| (1) In general. Subject to the provisions of paragraph | 23 |
| (2) and
subsection (b) (3), for purposes of this Section | 24 |
| and Section 803(e), a
taxpayer's gross income, adjusted | 25 |
| gross income, or taxable income for
the taxable year shall | 26 |
| mean the amount of gross income, adjusted gross
income or | 27 |
| taxable income properly reportable for federal income tax
| 28 |
| purposes for the taxable year under the provisions of the | 29 |
| Internal
Revenue Code. Taxable income may be less than | 30 |
| zero. However, for taxable
years ending on or after | 31 |
| December 31, 1986, net operating loss
carryforwards from | 32 |
| taxable years ending prior to December 31, 1986, may not
| 33 |
| exceed the sum of federal taxable income for the taxable | 34 |
| year before net
operating loss deduction, plus the excess | 35 |
| of addition modifications over
subtraction modifications |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| for the taxable year. For taxable years ending
prior to | 2 |
| December 31, 1986, taxable income may never be an amount in | 3 |
| excess
of the net operating loss for the taxable year as | 4 |
| defined in subsections
(c) and (d) of Section 172 of the | 5 |
| Internal Revenue Code, provided that when
taxable income of | 6 |
| a corporation (other than a Subchapter S corporation),
| 7 |
| trust, or estate is less than zero and addition | 8 |
| modifications, other than
those provided by subparagraph | 9 |
| (E) of paragraph (2) of subsection (b) for
corporations or | 10 |
| subparagraph (E) of paragraph (2) of subsection (c) for
| 11 |
| trusts and estates, exceed subtraction modifications, an | 12 |
| addition
modification must be made under those | 13 |
| subparagraphs for any other taxable
year to which the | 14 |
| taxable income less than zero (net operating loss) is
| 15 |
| applied under Section 172 of the Internal Revenue Code or | 16 |
| under
subparagraph (E) of paragraph (2) of this subsection | 17 |
| (e) applied in
conjunction with Section 172 of the Internal | 18 |
| Revenue Code.
| 19 |
| (2) Special rule. For purposes of paragraph (1) of this | 20 |
| subsection,
the taxable income properly reportable for | 21 |
| federal income tax purposes
shall mean:
| 22 |
| (A) Certain life insurance companies. In the case | 23 |
| of a life
insurance company subject to the tax imposed | 24 |
| by Section 801 of the
Internal Revenue Code, life | 25 |
| insurance company taxable income, plus the
amount of | 26 |
| distribution from pre-1984 policyholder surplus | 27 |
| accounts as
calculated under Section 815a of the | 28 |
| Internal Revenue Code;
| 29 |
| (B) Certain other insurance companies. In the case | 30 |
| of mutual
insurance companies subject to the tax | 31 |
| imposed by Section 831 of the
Internal Revenue Code, | 32 |
| insurance company taxable income;
| 33 |
| (C) Regulated investment companies. In the case of | 34 |
| a regulated
investment company subject to the tax | 35 |
| imposed by Section 852 of the
Internal Revenue Code, | 36 |
| investment company taxable income;
|
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| (D) Real estate investment trusts. In the case of a | 2 |
| real estate
investment trust subject to the tax imposed | 3 |
| by Section 857 of the
Internal Revenue Code, real | 4 |
| estate investment trust taxable income;
| 5 |
| (E) Consolidated corporations. In the case of a | 6 |
| corporation which
is a member of an affiliated group of | 7 |
| corporations filing a consolidated
income tax return | 8 |
| for the taxable year for federal income tax purposes,
| 9 |
| taxable income determined as if such corporation had | 10 |
| filed a separate
return for federal income tax purposes | 11 |
| for the taxable year and each
preceding taxable year | 12 |
| for which it was a member of an affiliated group.
For | 13 |
| purposes of this subparagraph, the taxpayer's separate | 14 |
| taxable
income shall be determined as if the election | 15 |
| provided by Section
243(b) (2) of the Internal Revenue | 16 |
| Code had been in effect for all such years;
| 17 |
| (F) Cooperatives. In the case of a cooperative | 18 |
| corporation or
association, the taxable income of such | 19 |
| organization determined in
accordance with the | 20 |
| provisions of Section 1381 through 1388 of the
Internal | 21 |
| Revenue Code;
| 22 |
| (G) Subchapter S corporations. In the case of: (i) | 23 |
| a Subchapter S
corporation for which there is in effect | 24 |
| an election for the taxable year
under Section 1362 of | 25 |
| the Internal Revenue Code, the taxable income of such
| 26 |
| corporation determined in accordance with Section | 27 |
| 1363(b) of the Internal
Revenue Code, except that | 28 |
| taxable income shall take into
account those items | 29 |
| which are required by Section 1363(b)(1) of the
| 30 |
| Internal Revenue Code to be separately stated; and (ii) | 31 |
| a Subchapter
S corporation for which there is in effect | 32 |
| a federal election to opt out of
the provisions of the | 33 |
| Subchapter S Revision Act of 1982 and have applied
| 34 |
| instead the prior federal Subchapter S rules as in | 35 |
| effect on July 1, 1982,
the taxable income of such | 36 |
| corporation determined in accordance with the
federal |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| Subchapter S rules as in effect on July 1, 1982; and
| 2 |
| (H) Partnerships. In the case of a partnership, | 3 |
| taxable income
determined in accordance with Section | 4 |
| 703 of the Internal Revenue Code,
except that taxable | 5 |
| income shall take into account those items which are
| 6 |
| required by Section 703(a)(1) to be separately stated | 7 |
| but which would be
taken into account by an individual | 8 |
| in calculating his taxable income.
| 9 |
| (f) Valuation limitation amount.
| 10 |
| (1) In general. The valuation limitation amount | 11 |
| referred to in
subsections (a) (2) (G), (c) (2) (I) and | 12 |
| (d)(2) (E) is an amount equal to:
| 13 |
| (A) The sum of the pre-August 1, 1969 appreciation | 14 |
| amounts (to the
extent consisting of gain reportable | 15 |
| under the provisions of Section
1245 or 1250 of the | 16 |
| Internal Revenue Code) for all property in respect
of | 17 |
| which such gain was reported for the taxable year; plus
| 18 |
| (B) The lesser of (i) the sum of the pre-August 1, | 19 |
| 1969 appreciation
amounts (to the extent consisting of | 20 |
| capital gain) for all property in
respect of which such | 21 |
| gain was reported for federal income tax purposes
for | 22 |
| the taxable year, or (ii) the net capital gain for the | 23 |
| taxable year,
reduced in either case by any amount of | 24 |
| such gain included in the amount
determined under | 25 |
| subsection (a) (2) (F) or (c) (2) (H).
| 26 |
| (2) Pre-August 1, 1969 appreciation amount.
| 27 |
| (A) If the fair market value of property referred | 28 |
| to in paragraph
(1) was readily ascertainable on August | 29 |
| 1, 1969, the pre-August 1, 1969
appreciation amount for | 30 |
| such property is the lesser of (i) the excess of
such | 31 |
| fair market value over the taxpayer's basis (for | 32 |
| determining gain)
for such property on that date | 33 |
| (determined under the Internal Revenue
Code as in | 34 |
| effect on that date), or (ii) the total gain realized | 35 |
| and
reportable for federal income tax purposes in |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| respect of the sale,
exchange or other disposition of | 2 |
| such property.
| 3 |
| (B) If the fair market value of property referred | 4 |
| to in paragraph
(1) was not readily ascertainable on | 5 |
| August 1, 1969, the pre-August 1,
1969 appreciation | 6 |
| amount for such property is that amount which bears
the | 7 |
| same ratio to the total gain reported in respect of the | 8 |
| property for
federal income tax purposes for the | 9 |
| taxable year, as the number of full
calendar months in | 10 |
| that part of the taxpayer's holding period for the
| 11 |
| property ending July 31, 1969 bears to the number of | 12 |
| full calendar
months in the taxpayer's entire holding | 13 |
| period for the
property.
| 14 |
| (C) The Department shall prescribe such | 15 |
| regulations as may be
necessary to carry out the | 16 |
| purposes of this paragraph.
| 17 |
| (g) Double deductions. Unless specifically provided | 18 |
| otherwise, nothing
in this Section shall permit the same item | 19 |
| to be deducted more than once.
| 20 |
| (h) Legislative intention. Except as expressly provided by | 21 |
| this
Section there shall be no modifications or limitations on | 22 |
| the amounts
of income, gain, loss or deduction taken into | 23 |
| account in determining
gross income, adjusted gross income or | 24 |
| taxable income for federal income
tax purposes for the taxable | 25 |
| year, or in the amount of such items
entering into the | 26 |
| computation of base income and net income under this
Act for | 27 |
| such taxable year, whether in respect of property values as of
| 28 |
| August 1, 1969 or otherwise.
| 29 |
| (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99; | 30 |
| 91-357, eff.
7-29-99; 91-541, eff. 8-13-99; 91-676, eff. | 31 |
| 12-23-99; 91-845, eff. 6-22-00;
91-913, eff. 1-1-01; 92-16, | 32 |
| eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff.
8-17-01; | 33 |
| 92-603, eff. 6-28-02; 92-626, eff. 7-11-02; 92-651, eff. | 34 |
| 7-11-02;
92-846, eff. 8-23-02; revised 10-15-03.)
|
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| (35 ILCS 5/216 new) | 2 |
| Sec. 216. New business technology development credit. | 3 |
| (a) For tax years ending after July 1, 2004, an Illinois | 4 |
| small business concern as defined in 15 U.S.C. 632, that has | 5 |
| been doing business for 4 years or less, and that conducts | 6 |
| primarily all of its business operations in Illinois shall be | 7 |
| allowed a credit against the tax imposed by subsections (a) and | 8 |
| (b) of Section 201 in the amount of 25% of all qualified | 9 |
| research expenses for Illinois high technology research and | 10 |
| development activities leading to the development of new or | 11 |
| improved products and services that can be marketed by Illinois | 12 |
| businesses.
For partners, shareholders of subchapter S | 13 |
| corporations, and owners of limited liability companies, if the | 14 |
| liability company is treated as a partnership for purposes of | 15 |
| federal and State income taxation, there shall be allowed a | 16 |
| credit under this Section to be determined in accordance with | 17 |
| the determination of income and distributive share of income | 18 |
| under Sections 702 and 704 and subchapter S of the Internal | 19 |
| Revenue Code. | 20 |
| (b) As used in this Section: | 21 |
| "High technology" means any area of research or development | 22 |
| designed to foster greater knowledge or understanding in fields | 23 |
| such as computer science, electronics, telecommunications, | 24 |
| physics, chemistry, or biology for the purpose of producing | 25 |
| designing, developing, or improving prototypes and new | 26 |
| processes and that leads to the development of new products and | 27 |
| services that can be marketed by Illinois businesses. | 28 |
| "Qualifying expenditures" means the qualifying | 29 |
| expenditures as defined for the federal credit for increasing | 30 |
| research activities that would be allowable under Section 41 of | 31 |
| the Internal Revenue Code and that are conducted in this State. | 32 |
| (c) For each taxable year beginning on or after January 1, | 33 |
| 2003, if the amount of the credit exceeds the income tax | 34 |
| liability for the applicable tax year, then the excess credit | 35 |
| shall be refunded to the taxpayer or, at the taxpayer's |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| election, may be used to offset other State tax liabilities | 2 |
| subject to rules adopted by the Department. | 3 |
| (d) The Department must adopt rules to enforce and | 4 |
| administer the provisions of this Section. This Section is | 5 |
| exempt from the provisions of Section 250 of this Act.
A small | 6 |
| business claiming a credit under this Section may not claim a | 7 |
| high technology research credit under Section 217 for the same | 8 |
| taxable year. | 9 |
| (35 ILCS 5/217 new) | 10 |
| Sec. 217. High technology research credit. | 11 |
| (a) Beginning with tax years ending after July 1, 2004, a | 12 |
| taxpayer shall be allowed a credit against the tax imposed by | 13 |
| subsections (a) and (b) of Section 201 for qualifying high | 14 |
| technology research activities in this State. The credit | 15 |
| allowed against the tax imposed by subsections (a) and (b) | 16 |
| shall be equal to 2% of all qualifying expenditures for high | 17 |
| technology research activities in this State during the taxable | 18 |
| year.
An additional credit shall be allowed against the tax | 19 |
| imposed by subsections (a) and (b) for qualifying expenditures | 20 |
| incurred for increasing high technology research activities in | 21 |
| this State.
For partners and shareholders of subchapter S | 22 |
| Corporations, and owners of limited liability companies, if the | 23 |
| liability company is treated as a partnership for purposes of | 24 |
| federal and State income taxation, there shall be allowed a | 25 |
| credit under this Section to be determined in accordance with | 26 |
| the determination of income and distributive share of income | 27 |
| under Sections 702 and 704 and subchapter S of the Internal | 28 |
| Revenue Code. | 29 |
| (b) As used in this Section: | 30 |
| "Qualifying expenditures for high technology research | 31 |
| activities" means the qualifying expenditures as defined for | 32 |
| the federal credit for increasing research activities that | 33 |
| would be allowable under Section 41 of the Internal Revenue | 34 |
| Code and that are conducted in this State. | 35 |
| "High technology research activities" means any area of |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| research or development designed to foster greater knowledge or | 2 |
| understanding in fields such as computer science, electronics, | 3 |
| telecommunications, physics, chemistry, or biology for the | 4 |
| purpose of producing, designing, developing, or improving | 5 |
| products, prototypes, and processes. | 6 |
| "Qualifying expenditures for increasing research | 7 |
| activities in this State" means, at the election of the | 8 |
| taxpayer, either (1) the excess of qualifying expenditures for | 9 |
| the taxable year in which incurred over qualifying expenditures | 10 |
| for the base period or (2) as an alternate credit, the | 11 |
| qualifying expenditures for the taxable year computed in a | 12 |
| manner consistent with the alternative incremental credit | 13 |
| described in Section 41(c)(4) of the Internal Revenue Code. For | 14 |
| purposes of the incremental credit amount, "base amount", | 15 |
| "basic research payment", and "qualified research expense" | 16 |
| mean the same as defined for the federal credit for increasing | 17 |
| research activities under Section 41 of the Internal Revenue | 18 |
| Code, except that such amounts are for activities conducted | 19 |
| within the State of Illinois. The taxpayer may use this | 20 |
| election regardless of the method used for the taxpayer's | 21 |
| federal income tax. An election is for the tax year, and the | 22 |
| taxpayer may use another or the same method for a subsequent | 23 |
| year. For purposes of the alternate credit computation, the | 24 |
| credit percentages applicable to qualified research expenses | 25 |
| described in clauses (i), (ii), and (iii) of Section | 26 |
| 41(c)(4)(A) of the Internal Revenue Code are 1.65%, 2.20%, and | 27 |
| 2.75%, respectively. | 28 |
| "Qualifying expenditures for the base period" means the | 29 |
| average of the qualifying expenditures for each year in the | 30 |
| base period, and "base period" means the 3 taxable years | 31 |
| immediately preceding the taxable year for which the | 32 |
| determination is made. | 33 |
| (c) Any credit allowed under this Section that is unused in | 34 |
| the year the credit is earned may be carried forward to each of | 35 |
| the 12 taxable years following the year for which the credit is | 36 |
| first computed until it is used. This credit shall be applied |
|
|
|
SB3081 |
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LRB093 19351 SJM 45087 b |
|
| 1 |
| first to the earliest year for which there is a liability. If | 2 |
| there is a credit under this Section from more than one tax | 3 |
| year that is available to offset a liability, the earliest | 4 |
| credit arising under this Section shall be applied first.
If an | 5 |
| unused credit is carried forward to a given year from 2 or more | 6 |
| earlier years, that credit arising in the earliest year shall | 7 |
| be applied first against the tax liability for the given year. | 8 |
| If a tax liability for the given year still remains, the credit | 9 |
| from the next earliest year shall then be applied, and so on, | 10 |
| until all credits have been used or no tax liability for the | 11 |
| given year remains. Any remaining unused credit or credits then | 12 |
| shall be carried forward to the next following year in which a | 13 |
| tax liability is incurred, except that no credit may be carried | 14 |
| forward to a year which is more than 12 years after the year in | 15 |
| which the expense for which the credit is given was incurred. | 16 |
| (d) The Department must adopt rules to enforce and | 17 |
| administer the provisions of this Section. This Section is | 18 |
| exempt from the provisions of Section 250 of this Act.
A | 19 |
| business claiming a high technology research credit under this | 20 |
| Section may not also claim a new business technology | 21 |
| development credit under Section 216 for the same taxable year.
| 22 |
| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.
|
|