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90_HB3739
New Act
215 ILCS 5/409 from Ch. 73, par. 1021
Creates the Certified Capital Company Act to provide
assistance in the formation of new and expansion of existing
businesses that create jobs in the State by providing an
incentive, in the form of tax credits against the State's
privilege taxes, for insurance companies to invest in
certified capital companies. Provides that the Department of
Commerce and Community Affairs shall implement the
provisions of the Act. Provides that an insurance company
that qualifies as a certified investor shall earn a vested
credit against State privilege taxes equal to 100% of the
investor's investment of certified capital, of which 10% may
be taken in any taxable year. Provides that the aggregate
amount of certified capital for which privilege tax credits
shall be allowed for all certified investors shall not exceed
the amount that would entitle all certified investors to take
aggregate credits of $30,000,000 per year. Amends the
Illinois Insurance Code to provide that the amount of the
credit earned under the Certified Capital Company Act may be
deducted from a company's privilege tax liability. Effective
immediately.
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1 AN ACT concerning insurance companies.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Certified Capital Company Act.
6 Section 5. Policy statement. The primary purpose of the
7 Certified Capital Company Act is to provide assistance in the
8 formation of new and expansion of existing businesses that
9 create jobs in the State by providing an incentive for
10 insurance companies to invest in certified capital companies.
11 Section 10. Definitions. For the purpose of this Act:
12 "Affiliate of a certified capital company or insurance
13 company" means:
14 (a) Any person, directly or indirectly beneficially
15 owning (whether through rights, options, convertible
16 interests, or otherwise), controlling or holding power to
17 vote 10% or more of the outstanding voting securities or
18 other ownership interests of the certified capital company or
19 insurance company, as applicable;
20 (b) Any person 10% or more of whose outstanding voting
21 securities or other ownership interest are directly or
22 indirectly beneficially owned (whether through rights,
23 options, convertible interests, or otherwise), controlled or
24 held with power to vote by the certified capital company or
25 insurance company, as applicable;
26 (c) Any person directly or indirectly controlling,
27 controlled by, or under common control with the certified
28 capital company or insurance company, as applicable;
29 (d) A partnership in which the certified capital company
30 or insurance company, as applicable, is a general partner; or
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1 (e) Any person who is an officer, director, employee, or
2 agent of the certified capital company or insurance company,
3 as applicable, or an immediate family member of that officer,
4 director, employee, or agent.
5 "Certification date" means the date on which a certified
6 capital company is so designated by the Department.
7 "Certified capital" means an investment of cash by a
8 certified investor in a certified capital company that fully
9 funds the purchase price of either or both its equity
10 interest in the certified capital company or a qualified debt
11 instrument issued by the certified capital company.
12 "Certified capital company" means a partnership,
13 corporation, trust, or limited liability company, whether
14 organized on a profit or not-for-profit basis, that has as
15 its primary business activity the investment of cash in
16 qualified businesses and that is certified by the Department
17 as meeting the criteria of this Act.
18 "Certified investor" means any insurance company that (A)
19 contributes certified capital pursuant to an allocation of
20 privilege tax credits under Section 20 of this Act or (B)
21 becomes irrevocably committed to contribute certified capital
22 by preparing and executing a privilege tax credit allocation
23 claim.
24 "Department" means the Department of Commerce and
25 Community Affairs.
26 "Person" means any natural person or entity, including a
27 corporation, general or limited partnership, trust, or
28 limited liability company.
29 "Privilege tax credit allocation claim" means a claim for
30 allocation of privilege tax credits prepared and executed by
31 a certified investor on a form provided by the Department and
32 filed by a certified capital company with the Department.
33 The form shall include an affidavit of the certified investor
34 under which the certified investor shall become legally bound
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1 and irrevocably committed to make an investment of certified
2 capital in a certified capital company in the amount
3 allocated (even if such amount is less than the amount of the
4 claim), subject only to the receipt of an allocation pursuant
5 to Section 20 of this Act.
6 "Qualified business" means a business that meets all of
7 the following conditions as of the time of a certified
8 capital company's first investment in the business:
9 (a) It is headquartered in this State, and its principal
10 business operations are located in this State;
11 (b) It is a small business concern as defined in Section
12 121.201 of the small business size regulations of the U.S.
13 Small Business Administration, 13 CFR 121.201.
14 A business predominantly engaged in professional services
15 provided by accountants, lawyers, or physicians shall not
16 constitute a qualified business.
17 "Qualified debt instrument" means a debt instrument
18 issued by a certified capital company, at par value or a
19 privilege, with an original maturity date of at least 5 years
20 from date of issuance, a repayment schedule that is no faster
21 than a level principal amortization over 5 years, and
22 interest, distribution, or payment features that are not
23 related to the profitability of the certified capital company
24 or the performance of the certified capital company's
25 investment portfolio.
26 "Qualified Distribution" means any distribution or
27 payment to equity holders of a certified capital company in
28 connection with the following:
29 (a) Costs and expenses of forming, syndicating,
30 managing, and operating the certified capital company,
31 including reasonable and necessary fees paid for professional
32 services (such as legal and accounting services) related to
33 the formation and operation of the certified capital company
34 and an annual management fee in an amount that does not
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1 exceed 2% of the value of the assets of the certified capital
2 company; and
3 (b) Any projected increase in federal or State taxes,
4 including penalties and interest related to State and federal
5 income taxes, of the equity owners of a certified capital
6 company resulting from the earnings or other tax liability of
7 the certified capital company to the extent that the increase
8 is related to the ownership, management, or operation of a
9 certified capital company.
10 "Qualified Investment" means the investment of cash by a
11 certified capital company in a qualified business for the
12 purchase of any debt, equity, or hybrid security, of any
13 nature and description whatsoever, including a debt
14 instrument or security that has the characteristics of debt
15 but that provides for conversion into equity or equity
16 participation instruments such as options or warrants.
17 "State privilege tax liability" means any liability
18 incurred by an insurance company under the provisions of
19 Section 409 of the Illinois Insurance Code.
20 Section 15. Certification.
21 (a) The Department shall establish by rule or regulation
22 the procedures for making an application to become a
23 certified capital company. The applicant shall pay a
24 non-refundable application fee of $7,500 at the time of
25 filing the application with the Department.
26 (b) A certified capital company's equity capitalization
27 at the time of seeking certification must be $500,000 or more
28 and must be in the form of unencumbered cash, marketable
29 securities, or other liquid assets.
30 (c) The Department shall review the organizational
31 documents of each applicant for certification and the
32 business history of the applicant and shall determine that
33 the applicant's cash, marketable securities, and other liquid
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1 assets are at least $500,000.
2 (d) The Department shall verify that at least 2
3 principals of the certified capital company or at least 2
4 persons employed to manage the funds of the certified capital
5 company have not less than 2 years of experience in the
6 venture capital industry.
7 (e) Any offering material involving the sale of
8 securities of the certified capital company shall include the
9 following statement: "By authorizing the formation of a
10 certified capital company, the State does not necessarily
11 endorse the quality of management or the potential for
12 earnings of such company and is not liable for damages or
13 losses to a certified investor in the company. Use of the
14 word 'certified' in an offering does not constitute a
15 recommendation or endorsement of the investment by the
16 Securities Department of the Office of the Secretary of
17 State. In the event applicable provisions of this Act are
18 violated, the State may require forfeiture of unused
19 privilege tax credits and repayment of used privilege tax
20 credits."
21 (f) Within 30 days of application, the Department shall
22 issue the certification or shall refuse the certification and
23 communicate in detail to the applicant the grounds for the
24 refusal, including suggestions for the removal of those
25 grounds. The Department shall review and approve or reject
26 applications in the order submitted, and in the event more
27 than one application is received by the Department on any
28 date, all such applications shall be reviewed and approved
29 simultaneously, except in the case of incomplete applications
30 or applications for which additional information is requested
31 by the Department and is not supplied by the applicant within
32 the allowable time limits established by the Department.
33 (g) No insurance company or any affiliate of an
34 insurance company shall, directly or indirectly, manage a
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1 certified capital company or control the direction of
2 investments for a certified capital company. This provision
3 shall not preclude an certified investor, insurance company,
4 or any other party from exercising its legal rights and
5 remedies (which may include interim management of a certified
6 capital company) in the event that a certified capital
7 company is in default of its statutory obligations or its
8 contractual obligations to such certified investor, insurance
9 company, or other party.
10 Section 20. Privilege tax credit.
11 (a) Any certified investor who makes an investment of
12 certified capital pursuant to an allocation of privilege tax
13 credits under Section 25 of this Act shall, in the year of
14 investment, earn a vested credit against State privilege tax
15 liability equal to 100% of the certified investor's
16 investment of certified capital. A certified investor shall
17 be entitled to take up to 10% of the vested privilege tax
18 credit in any taxable year of the certified investor.
19 (b) The credit to be applied against State privilege tax
20 liability in any one year may not exceed the State privilege
21 tax liability of the certified investor for that taxable
22 year. All unused credits against State privilege tax
23 liability may be carried forward indefinitely until the
24 privilege tax credits are utilized.
25 (c) A certified investor claiming a credit against State
26 privilege tax liability earned through an investment in a
27 certified capital company shall not be required to pay any
28 additional retaliatory tax levied pursuant to Section 444 of
29 the Illinois Insurance Code as a result of claiming that
30 credit.
31 Section 30. Aggregate limitations on credits.
32 (a) The aggregate amount of certified capital for which
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1 privilege tax credits shall be allowed for all certified
2 investors under this Act shall not exceed the amount that
3 would entitle all certified investors in certified capital
4 companies to take aggregate credits of $30,000,000 per year.
5 No certified capital company may file privilege tax credit
6 allocation claims in excess of the maximum amount of
7 certified capital for which privilege tax credits may be
8 allowed as provided in this subsection.
9 (b) Certified capital for which privilege tax credits
10 are allowed will be allocated to certified investors in
11 certified capital companies in the order that privilege tax
12 credit allocation claims are filed with the Department by
13 such certified capital companies on behalf of their certified
14 investors. All filings made on the same day shall be treated
15 as having been made contemporaneously.
16 (c) In the event that 2 or more certified capital
17 companies file privilege tax credit allocation claims with
18 the Department on behalf of their respective certified
19 investors on the same day, and the amount of such privilege
20 tax credit allocation claims exceeds in the aggregate the
21 limit of available tax credits under the provisions of this
22 Section, capital for which privilege tax credits are allowed
23 shall be allocated among the certified investors on a pro
24 rata basis with respect to the amounts claimed. The pro rata
25 allocation for any one certified investor shall be the
26 product of a fraction, the numerator of which is the amount
27 of the privilege tax credit allocation claim filed on behalf
28 of such certified investor and the denominator of which is
29 the total of all privilege tax credit allocation claims filed
30 on behalf of all certified investors, multiplied by the
31 aggregate limitation as provided in subsection (a).
32 (d) Within 5 business days after the Department receives
33 a privilege tax credit allocation claim filed by a certified
34 capital company on behalf of one or more of its certified
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1 investors, the Department shall notify the certified capital
2 company of the amount of tax credits allocated to each of the
3 certified investors in the certified capital company.
4 (e) In the event a certified capital company does not
5 receive an investment of certified capital equaling the
6 amount of privilege tax credits allocated to a certified
7 investor for which it filed a privilege tax credit allocation
8 claim within 5 business days of its receipt of notice of
9 allocation, that portion of the privilege tax credits
10 allocated to the certified investor in the certified capital
11 company will be forfeited, and the Department will reallocate
12 that certified capital among the other certified investors in
13 all certified capital companies on a pro rata basis with
14 respect to the privilege tax credit allocation claims filed
15 on behalf of such certified investors by all certified
16 capital companies.
17 (f) The maximum amount of certified capital for which
18 privileges tax credits shall be allowed to any one certified
19 investor (and its affiliates) in one or more certified
20 capital companies in any year shall not exceed 10% of the
21 aggregate limitation as provided in subsection (a).
22 Section 35. Requirements for continuance of
23 certification.
24 (a) To continue to be certified, a certified capital
25 company must make qualified investments according to the
26 following schedule:
27 (1) Within the period ending 3 years after its
28 certification date, a certified capital company must have
29 made qualified investments cumulatively equal to 30% of
30 its certified capital.
31 (2) Within the period ending 5 years after its
32 certification date, a certified capital company must have
33 made qualified investments cumulatively equal to 50% of
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1 its certified capital.
2 (b) The aggregate cumulative amount of all qualified
3 investments made by the certified capital company from its
4 certification date will be considered in the calculation of
5 the percentage requirements under this Act. Any proceeds
6 received from a qualified investment may be invested in
7 another qualified investment and shall count toward any
8 requirement in this Act with respect to investments of
9 certified capital.
10 (c) Any business that is classified as a qualified
11 business at the time of the first investment in the business
12 by a certified capital company shall remain classified as a
13 qualified business and may receive follow-on investments from
14 any certified capital company or any of its affiliates, and
15 such follow-on investments shall be qualified investments
16 even though such business may not meet the definition of a
17 qualified business at the time of such follow-on investments.
18 (d) No qualified investment may be made at a cost to a
19 certified capital company greater than 15% of the total
20 certified capital of the certified capital company at the
21 time of investment.
22 (e) At its option, a certified capital company, prior to
23 making a proposed investment in a specific business, may
24 request from the Department a written opinion that the
25 business in which it proposes to invest should be considered
26 a qualified business. Upon receiving such a request, the
27 Department shall have 10 working days to determine whether or
28 not the business meets the definition of a qualified business
29 and notify the certified capital company of its determination
30 and an explanation thereof. If the Department fails to
31 notify the certified capital company with respect to the
32 proposed investment within the 10-working-day period, the
33 business in which the certified capital company proposes to
34 invest shall be deemed to be a qualified business. If the
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1 Department determines that the business in which the
2 certified capital company proposes to invest does not meet
3 all of the criteria of a qualified business set forth in
4 Section 15, the Department may nevertheless consider the
5 business a qualified business and approve the investment if
6 the Department determines that the proposed investment will
7 further State economic development.
8 (f) All certified capital not currently invested in
9 qualified investments by the certified capital company must
10 be invested in cash deposited with a federally-insured
11 financial institution, certificates of deposit in a
12 federally-insured financial institution, investment
13 securities that are obligations of the United States, its
14 agencies or instrumentalities, or obligations that are
15 guaranteed fully as to principal and interest by the United
16 States, investment-grade instruments (rated in the top 4
17 rating categories by a nationally recognized rating
18 organization), obligations of this State, any municipality in
19 this State, or any political subdivision of this State; or
20 any other investments approved in advance and in writing by
21 the Department.
22 (g) Each certified capital company shall report the
23 following to the Department:
24 (1) As soon as practicable after the receipt of
25 certified capital, each certified capital company shall
26 report the following to the Department: (A) the name of
27 each certified investor from which the certified capital
28 was received, including such certified investor's
29 insurance privilege tax identification number, (B) the
30 amount of each certified investor's investment of
31 certified capital and privilege tax credits, and (C) the
32 date on which the certified capital was received.
33 (2) On an annual basis, on or before January 31st,
34 (A) the amount of the certified capital company's
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1 certified capital at the end of the immediately preceding
2 year, (B) whether or not the certified capital company
3 has invested more than 15% of its total certified capital
4 in any one business, and (C) all qualified investments
5 that the certified capital company made during the
6 previous calendar year.
7 (3) Each certified capital company shall provide to
8 the Department annual audited financial statements, which
9 shall include the opinion of an independent certified
10 public accountant, within 90 days of the close of the
11 fiscal year. The audit shall address the methods of
12 operation and conduct of the business of the certified
13 capital company to determine if the certified capital
14 company is complying with the statutes and program rules
15 and that the funds received by the certified capital
16 company have been invested as required within the time
17 limits provided by subsection (a) of Section 30.
18 (4) On or before January 31 of each year, each
19 certified capital company shall pay an annual,
20 non-refundable certification fee of $5,000 to the
21 Department; provided, that no such fee shall be required
22 within 6 months of the initial certification date of a
23 certified capital company.
24 Section 40. Distributions. A certified capital company
25 may make qualified distributions at any time. In order to
26 make a distribution to its equity holders, other than a
27 qualified distribution, a certified capital company must have
28 made qualified investments in an amount cumulatively equal to
29 100% of its certified capital. A certified capital company
30 may, however, make repayments of principal and interest on
31 its indebtedness without any restriction whatsoever,
32 including repayments of indebtedness of the certified capital
33 company on which certified investors earned privilege tax
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1 credits.
2 Section 45. Decertification.
3 (a) The Department shall conduct an annual review of
4 each certified capital company to determine if the certified
5 capital company is abiding by the requirements of
6 certification, to advise the certified capital company as to
7 the eligibility status of its qualified investments, and to
8 ensure that no investment has been made in violation of this
9 Act. The cost of the annual review shall be paid by each
10 certified capital company according to a reasonable fee
11 schedule adopted by the Department.
12 (b) Any material violation of Section 30 shall be
13 grounds for decertification of the certified capital company.
14 If the Department determines that a certified capital company
15 is not in compliance with the requirements of Section 30, it
16 shall, by written notice, inform the officers of the
17 certified capital company that the certified capital company
18 may be subject to decertification in 120 days from the date
19 of mailing of the notice, unless the deficiencies are
20 corrected and the certified capital company is again in
21 compliance with all requirements for certification.
22 (c) At the end of the 120-day grace period, if the
23 certified capital company is still not in compliance with
24 Section 30, the Department may send a notice of
25 decertification to the certified capital company and to all
26 other appropriate State agencies.
27 (d) Decertification of a certified capital company may
28 cause the recapture of privilege tax credits previously
29 claimed and the forfeiture of future privilege tax credits to
30 be claimed by certified investors with respect to such
31 certified capital company, as follows:
32 (1) Decertification of a certified capital company
33 within 3 years of its certification date shall cause the
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1 recapture of all privilege tax credits previously claimed
2 and the forfeiture of all future privilege tax credits to
3 be claimed by certified investors with respect to such
4 certified capital company.
5 (2) When a certified capital company meets all
6 requirements for continued certification under paragraph
7 (1) of subsection (a) of Section 30 (and subsequently
8 fails to meet the requirements for continued
9 certification under the provisions of paragraph (2) of
10 subsection (a) of Section 30, those privilege tax credits
11 that have been or will be taken by certified investors
12 within 3 years from the certification date of the
13 certified capital company will not be subject to
14 recapture or forfeiture; however, all privilege tax
15 credits that have been or will be taken by certified
16 investors after the third anniversary of the
17 certification date of the certified capital company shall
18 be subject to recapture or forfeiture.
19 (3) Once a certified capital company has met all
20 requirements for continued certification under paragraphs
21 (1) and (2) of subsection (a) of Section 30, and is
22 subsequently decertified, those privilege tax credits
23 that have been or will be taken by certified investors
24 within 5 years from the certification date of the
25 certified capital company will not be subject to
26 recapture or forfeiture. Those privilege tax credits to
27 be taken subsequent to the fifth year of certification
28 shall be subject to forfeiture only if the certified
29 capital company is decertified within 5 years from its
30 certification date.
31 (4) Once a certified capital company has invested
32 an amount cumulatively equal to 100% of its certified
33 capital in qualified investments, all privilege tax
34 credits claimed or to be claimed by its certified
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1 investors shall no longer be subject to recapture or
2 forfeiture.
3 (e) Once a certified capital company has invested an
4 amount cumulatively equal to 100% of its certified capital in
5 qualified investments, the certified capital company shall no
6 longer be subject to regulation by the Department.
7 (f) The Department shall send written notice to the
8 address of each certified investor whose privilege tax credit
9 has been subject to recapture or forfeiture, using the
10 address last shown on the last privilege tax filing.
11 (g) The Department shall have the authority to waive any
12 recapture or forfeiture of credits if, after considering all
13 facts and circumstances, it determines that such waiver will
14 have the effect of furthering State economic development.
15 Section 50. Transferability. The privilege tax credit
16 established by this Act may be transferred or sold. The
17 Department shall adopt rules to facilitate the transfer or
18 sale of the privilege tax credits. Any transfer or sale
19 shall not affect the time schedule for taking the privilege
20 tax credit as provided in this Act. Any privilege tax
21 credits recaptured under Section 40 shall be the liability of
22 the taxpayer that actually claimed the privilege tax credits.
23 Section 55. Rules. The Department shall adopt rules
24 necessary to carry out the provisions of this Act within 60
25 days after the effective date of this Act. The rules shall
26 provide that the Department shall begin accepting
27 applications for certification as a certified capital company
28 not later than 90 days after the effective date of this Act.
29 The rules shall further provide that any certified capital
30 company may file privilege tax credit allocation claims on
31 behalf of its certified investors at any time on or after its
32 certification date and that privilege tax credits shall be
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1 earned by and vested in certified investors at the time of
2 such investment of certified capital, although the privilege
3 tax credits may not be claimed or utilized until 1999.
4 Section 80. The Illinois Insurance Code is amended by
5 changing Section 409 as follows:
6 (215 ILCS 5/409) (from Ch. 73, par. 1021)
7 Sec. 409. Annual privilege tax payable by foreign or
8 alien companies.
9 (1) Every foreign or alien company doing an insurance
10 business in this State, except fraternal benefit societies,
11 shall, for the privilege of doing business in this State by
12 renewal of certificate of authority as provided in Section
13 114, pay to the Director for the State treasury a State tax
14 equal to 2 per cent of the net taxable premium income,
15 together with any amounts due under Section 444. Every
16 domestic insurance company, except a fraternal benefit
17 society, which fails to comply with all the requirements of
18 subsection (4) of this Section must pay to the Director for
19 payment into the State Treasury a State tax equal to 2 per
20 cent of the net taxable premium income and upon the failure
21 of any company to pay any such tax due, the Director may, by
22 order, revoke the company's certificate of authority after
23 giving 20 days written notice to the company. The gross
24 taxable premium income shall be the gross amount of premiums
25 received on direct business during the preceding calendar
26 year on contracts covering risks in this State, except
27 premiums on annuities and except premiums on group insurance
28 contracts awarded after the effective date of this amendatory
29 Act of 1976 under the State Employees Group Insurance Act of
30 1971, and except premiums for deferred compensation plans for
31 employees of the State, units of local government or school
32 districts. The net taxable premium income shall be the gross
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1 taxable premium income reduced only by the following:
2 (a) the amount of premiums returned thereon which
3 shall be limited to premiums returned during the
4 preceding calendar year and shall not include the return
5 of cash surrender values or death benefits on life
6 policies;
7 (b) dividends on such direct business that have
8 been paid in cash, applied in reduction of premiums or
9 left to accumulate to the credit of policyholders or
10 annuitants. In the case of life insurance, no deduction
11 shall be made for the payment of deferred dividends paid
12 in cash to policyholders on maturing policies; dividends
13 left to accumulate to the credit of policyholders or
14 annuitants shall be included as gross taxable premium
15 income when such dividend accumulations are applied to
16 purchase paid-up insurance or to shorten the endowment or
17 premium paying period.
18 (2) There shall be deducted from the tax thus computed,
19 but only to the extent thereof, the amount, if any, paid
20 during the preceding calendar year: (a) for the benefit of
21 organized fire departments, to cities, villages, incorporated
22 towns and fire protection districts of this State as a tax on
23 premiums received by such company in such cities, villages,
24 incorporated towns and fire protection districts, and (b) as
25 a tax to this State or any subdivision thereof on or measured
26 by net income, and (c) as a tax to this State or any
27 subdivision thereof on or measured by the value of the
28 company in excess of the value of its tangible property, and
29 (d) as a fee or charge for the valuation of life insurance
30 policies, and (e) if the company is not an Illinois domestic
31 company, as a financial regulation fee under subsection (7)
32 of Section 408 of this Code for the examination and analysis
33 of financial condition, and the remainder shall be paid by
34 such company as its annual privilege tax, and (f) for fees
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1 paid pursuant to Section 408 (1) (jj). In addition, there
2 shall be deducted from the tax thus computed the tax credit
3 provided for in Section 20 of the Certified Capital Company
4 Act.
5 (3) If a company survives or was formed by a merger,
6 consolidation, reorganization or reincorporation, the
7 premiums received, and amounts returned or paid, by all
8 foreign or alien companies parties to such merger,
9 consolidation, reorganization or reincorporation, shall, for
10 the purposes of determining the amount of the tax imposed by
11 this Section, be regarded as received, returned or paid by
12 such surviving or new company.
13 (4) A domestic company must pay the State tax in
14 subsection (1) of this Section unless:
15 (a) it maintains its principal place of business in
16 this State; and
17 (b) it maintains in this State officers and
18 personnel knowledgeable of and responsible for the
19 company's operation, books, records, administration, and
20 annual statement; and
21 (c) it conducts in this State substantially all of
22 its underwriting, policy issuing, and serving operations
23 relating to Illinois policyholders and certificate
24 holders; and
25 (d) it complies with the provisions of Section 133
26 (2) of this Code.
27 Payments shall be due on an estimated basis for all of
28 calendar year 1969 on or before September 1, 1969. Effective
29 January 1, 1970, a company shall make an annual return for
30 the preceding calendar year on or before March 1st setting
31 forth such information on such forms as the Director may
32 reasonably require. Payments of quarterly installments of
33 the taxpayer's total estimated tax for the current calendar
34 year shall be due on or before April 15th, June 15th,
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1 September 15th and December 15th, unless for the calendar
2 year 1971, and each calendar year thereafter, insurers
3 transacting insurance in this State whose annual tax for the
4 preceding calendar year was less than $5,000, shall then make
5 only an annual return. Failure of a company to make
6 quarterly payments, if required, of at least one-fourth of
7 either (a) the total tax paid during the previous calendar
8 year or (b) 80% of the actual tax for the current calendar
9 year shall subject it to the penalty provisions set forth in
10 Section 412 of this Act.
11 (Source: P.A. 86-753; 87-108.)
12 Section 99. Effective date. This Act takes effect upon
13 becoming law.