Illinois General Assembly - Illinois Compiled Statutes

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70 ILCS 518/40

(70 ILCS 518/40)

Sec. 40. Bonds and notes; exemption from taxation.

The creation of the
Authority is in all respects for
the benefit of the people of Illinois and for the improvement of their health,
safety, welfare, comfort, and
security, and its purposes are public purposes. In consideration thereof, the
notes and bonds of the
Authority issued pursuant to this Act and the income from these notes and bonds
may be free from all
taxation by the State or its political subdivisions, except for estate,
transfer, and inheritance taxes. The
exemption from taxation provided by the preceding sentence shall apply to the
income on any notes or
bonds of the Authority only if the Authority in its sole judgment determines
that the exemption enhances
the marketability of the bonds or notes or reduces the interest rates that
would otherwise be borne by the
bonds or notes. For purposes of Section 250 of the Illinois Income Tax Act, the
exemption of the Authority
shall terminate after all of the bonds have been paid. The amount of such income that shall be added and
then subtracted on the Illinois income tax return of a taxpayer, subject to Section 203 of the Illinois Income
Tax Act, from federal adjusted gross income or federal taxable income in computing Illinois base income
shall be the interest net of any bond premium amortization.

(Source: P.A. 95-331, eff. 8-21-07.)