Illinois 97th Regular Session Status: Enacted

HB 2955 — REVENUE-VARIOUS

Last action — Public Act . . . . . . . . . 97-0507

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 22, 2011. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    0 primary, 1 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Amends the Illinois Income Tax Act to (i) include a deduction for a taxpayer who was required to add back insurance premiums in an amount equal to the amount of any reimbursement received from the insurance company for any loss covered by a policy for which those premiums were paid, to the extent of the federal income tax deduction that would have been allowable for the loss in computing adjusted gross income if not for the reimbursement, (ii) make changes concerning net losses, life insurance income, and withholding by partnerships, and (iii) make various administrative and technical changes. Makes other changes. Effective immediately.

Bill Text

What changed in the latest version

5466 added · 5582 removed

Plain-language change summary

The changes to Bill HB 2955 include revised language regarding tax exemption criteria. The amended version emphasizes specific exclusions related to the federal Internal Revenue Code, making it clear how certain gross income amounts are handled for state taxation purposes. This matters because it could affect how taxable income is calculated and may provide clearer guidelines for taxpayers and state revenue collection. Overall, the adjustments aim to enhance understanding of tax liabilities, potentially making compliance easier for individuals and businesses.

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HB2955 Engrossed LRB097 08285 HLH 48412 b AN ACT concerning revenue.
HB2955 Enrolled LRB097 08285 HLH 48412 b AN ACT concerning revenue.
(A) An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of adjusted gross income, except stock dividends of qualified public utilities described in Section 305(e) of the Internal Revenue HB2955 Engrossed - 2 - LRB097 08285 HLH 48412 b Code;
(A) An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of adjusted gross income, except stock dividends of qualified public utilities described in Section 305(e) of the Internal Revenue HB2955 Enrolled - 2 - LRB097 08285 HLH 48412 b Code;
(D-5) An amount, to the extent not included in adjusted gross income, equal to the amount of money withdrawn by the taxpayer in the taxable year from a medical care savings account and the interest earned on the account in the taxable year of a withdrawal HB2955 Engrossed - 3 - LRB097 08285 HLH 48412 b pursuant to subsection (b) of Section 20 of the Medical Care Savings Account Act or subsection (b) of Section 20 of the Medical Care Savings Account Act of 2000;
(D-5) An amount, to the extent not included in adjusted gross income, equal to the amount of money withdrawn by the taxpayer in the taxable year from a medical care savings account and the interest earned on the account in the taxable year of a withdrawal HB2955 Enrolled - 3 - LRB097 08285 HLH 48412 b pursuant to subsection (b) of Section 20 of the Medical Care Savings Account Act or subsection (b) of Section 20 of the Medical Care Savings Account Act of 2000;
If the taxpayer continues to own property through the last day of the last tax year for which the taxpayer may claim a depreciation deduction for federal income tax purposes and for which the taxpayer was allowed in any taxable year to make a subtraction modification under subparagraph (Z), then an amount HB2955 Engrossed - 4 - LRB097 08285 HLH 48412 b equal to that subtraction modification.
If the taxpayer continues to own property through the last day of the last tax year for which the taxpayer may claim a depreciation deduction for federal income tax purposes and for which the taxpayer was allowed in any taxable year to make a subtraction modification under subparagraph (Z), then an amount HB2955 Enrolled - 4 - LRB097 08285 HLH 48412 b equal to that subtraction modification.
The addition modification required by this subparagraph shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income under Sections 951 through 964 HB2955 Engrossed - 5 - LRB097 08285 HLH 48412 b of the Internal Revenue Code and amounts included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the interest was paid, accrued, or incurred.
The addition modification required by this subparagraph shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income under Sections 951 through 964 HB2955 Enrolled - 5 - LRB097 08285 HLH 48412 b of the Internal Revenue Code and amounts included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the interest was paid, accrued, or incurred.
or HB2955 Engrossed - 6 - LRB097 08285 HLH 48412 b (iii) the taxpayer can establish, based on clear and convincing evidence, that the interest paid, accrued, or incurred relates to a contract or agreement entered into at arm's-length rates and terms and the principal purpose for the payment is not federal or Illinois tax avoidance;
or HB2955 Enrolled - 6 - LRB097 08285 HLH 48412 b (iii) the taxpayer can establish, based on clear and convincing evidence, that the interest paid, accrued, or incurred relates to a contract or agreement entered into at arm's-length rates and terms and the principal purpose for the payment is not federal or Illinois tax avoidance;
(D-18) An amount equal to the amount of intangible expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, (i) for taxable HB2955 Engrossed - 7 - LRB097 08285 HLH 48412 b years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
(D-18) An amount equal to the amount of intangible expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, (i) for taxable HB2955 Enrolled - 7 - LRB097 08285 HLH 48412 b years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
The preceding sentence does not apply to the extent that the same dividends caused a reduction to the addition modification required under HB2955 Engrossed - 8 - LRB097 08285 HLH 48412 b Section 203(a)(2)(D-17) of this Act.
The preceding sentence does not apply to the extent that the same dividends caused a reduction to the addition modification required under HB2955 Enrolled - 8 - LRB097 08285 HLH 48412 b Section 203(a)(2)(D-17) of this Act.
or (ii) any item of intangible expense or cost paid, accrued, or incurred, directly or indirectly, if the taxpayer can establish, based HB2955 Engrossed - 9 - LRB097 08285 HLH 48412 b on a preponderance of the evidence, both of the following:
or (ii) any item of intangible expense or cost paid, accrued, or incurred, directly or indirectly, if the taxpayer can establish, based HB2955 Enrolled - 9 - LRB097 08285 HLH 48412 b on a preponderance of the evidence, both of the following:
Nothing in this subsection shall preclude the Director from making any other adjustment otherwise allowed under Section 404 of this Act for any tax year beginning after the effective date of this amendment provided such adjustment is made HB2955 Engrossed - 10 - LRB097 08285 HLH 48412 b pursuant to regulation adopted by the Department and such regulations provide methods and standards by which the Department will utilize its authority under Section 404 of this Act;
Nothing in this subsection shall preclude the Director from making any other adjustment otherwise allowed under Section 404 of this Act for any tax year beginning after the effective date of this amendment provided such adjustment is made HB2955 Enrolled - 10 - LRB097 08285 HLH 48412 b pursuant to regulation adopted by the Department and such regulations provide methods and standards by which the Department will utilize its authority under Section 404 of this Act;
The HB2955 Engrossed - 11 - LRB097 08285 HLH 48412 b preceding sentence does not apply to the extent that the same dividends caused a reduction to the addition modification required under Section 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this Act.
The HB2955 Enrolled - 11 - LRB097 08285 HLH 48412 b preceding sentence does not apply to the extent that the same dividends caused a reduction to the addition modification required under Section 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this Act.
For taxable years beginning on or after January 1, 2007, in the case of a distribution from a qualified tuition program under Section 529 of the Internal Revenue Code, other than (i) a distribution from a College Savings Pool created under Section 16.5 of the State Treasurer Act, (ii) a distribution from the Illinois Prepaid Tuition Trust Fund, or (iii) a distribution from a qualified tuition program under Section 529 of the Internal Revenue Code that (I) adopts and determines that its offering materials comply with the College Savings Plans Network's disclosure principles and (II) has made reasonable efforts to inform in-state residents of the existence HB2955 Engrossed - 12 - LRB097 08285 HLH 48412 b of in-state qualified tuition programs by informing Illinois residents directly and, where applicable, to inform financial intermediaries distributing the program to inform in-state residents of the existence of in-state qualified tuition programs at least annually, an amount equal to the amount excluded from gross income under Section 529(c)(3)(B).
For taxable years beginning on or after January 1, 2007, in the case of a distribution from a qualified tuition program under Section 529 of the Internal Revenue Code, other than (i) a distribution from a College Savings Pool created under Section 16.5 of the State Treasurer Act, (ii) a distribution from the Illinois Prepaid Tuition Trust Fund, or (iii) a distribution from a qualified tuition program under Section 529 of the Internal Revenue Code that (I) adopts and determines that its offering materials comply with the College Savings Plans Network's disclosure principles and (II) has made reasonable efforts to inform in-state residents of the existence HB2955 Enrolled - 12 - LRB097 08285 HLH 48412 b of in-state qualified tuition programs by informing Illinois residents directly and, where applicable, to inform financial intermediaries distributing the program to inform in-state residents of the existence of in-state qualified tuition programs at least annually, an amount equal to the amount excluded from gross income under Section 529(c)(3)(B).
HB2955 Engrossed - 13 - LRB097 08285 HLH 48412 b (D-22) For taxable years beginning on or after January 1, 2009, in the case of a nonqualified withdrawal or refund of moneys from a qualified tuition program under Section 529 of the Internal Revenue Code administered by the State that is not used for qualified expenses at an eligible education institution, an amount equal to the contribution component of the nonqualified withdrawal or refund that was previously deducted from base income under subsection (a)(2)(y) of this Section, provided that the withdrawal or refund did not result from the beneficiary's death or disability;
HB2955 Enrolled - 13 - LRB097 08285 HLH 48412 b (D-22) For taxable years beginning on or after January 1, 2009, in the case of a nonqualified withdrawal or refund of moneys from a qualified tuition program under Section 529 of the Internal Revenue Code administered by the State that is not used for qualified expenses at an eligible education institution, an amount equal to the contribution component of the nonqualified withdrawal or refund that was previously deducted from base income under subsection (a)(2)(y) of this Section, provided that the withdrawal or refund did not result from the beneficiary's death or disability;
(E) For taxable years ending before December 31, 2001, any amount included in such total in respect of any compensation (including but not limited to any compensation paid or accrued to a serviceman while a prisoner of war or missing in action) paid to a resident by reason of being on active duty in the Armed Forces of the United States and in respect of any compensation paid or accrued to a resident who as a HB2955 Engrossed - 14 - LRB097 08285 HLH 48412 b governmental employee was a prisoner of war or missing in action, and in respect of any compensation paid to a resident in 1971 or thereafter for annual training performed pursuant to Sections 502 and 503, Title 32, United States Code as a member of the Illinois National Guard or, beginning with taxable years ending on or after December 31, 2007, the National Guard of any other state.
(E) For taxable years ending before December 31, 2001, any amount included in such total in respect of any compensation (including but not limited to any compensation paid or accrued to a serviceman while a prisoner of war or missing in action) paid to a resident by reason of being on active duty in the Armed Forces of the United States and in respect of any compensation paid or accrued to a resident who as a HB2955 Enrolled - 14 - LRB097 08285 HLH 48412 b governmental employee was a prisoner of war or missing in action, and in respect of any compensation paid to a resident in 1971 or thereafter for annual training performed pursuant to Sections 502 and 503, Title 32, United States Code as a member of the Illinois National Guard or, beginning with taxable years ending on or after December 31, 2007, the National Guard of any other state.
(F) An amount equal to all amounts included in such total pursuant to the provisions of Sections 402(a), HB2955 Engrossed - 15 - LRB097 08285 HLH 48412 b 402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the Internal Revenue Code, or included in such total as distributions under the provisions of any retirement or disability plan for employees of any governmental agency or unit, or retirement payments to retired partners, which payments are excluded in computing net earnings from self employment by Section 1402 of the Internal Revenue Code and regulations adopted pursuant thereto;
(F) An amount equal to all amounts included in such total pursuant to the provisions of Sections 402(a), HB2955 Enrolled - 15 - LRB097 08285 HLH 48412 b 402(c), 403(a), 403(b), 406(a), 407(a), and 408 of the Internal Revenue Code, or included in such total as distributions under the provisions of any retirement or disability plan for employees of any governmental agency or unit, or retirement payments to retired partners, which payments are excluded in computing net earnings from self employment by Section 1402 of the Internal Revenue Code and regulations adopted pursuant thereto;
(J) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act or a River Edge Redevelopment Zone or zones created under the River Edge Redevelopment Zone Act, and conducts substantially all of its operations in an Enterprise Zone or zones or a River Edge Redevelopment Zone or HB2955 Engrossed - 16 - LRB097 08285 HLH 48412 b zones.
(J) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act or a River Edge Redevelopment Zone or zones created under the River Edge Redevelopment Zone Act, and conducts substantially all of its operations in an Enterprise Zone or zones or a River Edge Redevelopment Zone or HB2955 Enrolled - 16 - LRB097 08285 HLH 48412 b zones.
and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of HB2955 Engrossed - 17 - LRB097 08285 HLH 48412 b the Internal Revenue Code, plus, for taxable years ending on or after December 31, 2011, Section 45G(e)(3) of the Internal Revenue Code and any amount included in gross income under Section 87 of the Internal Revenue Code;
and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of HB2955 Enrolled - 17 - LRB097 08285 HLH 48412 b the Internal Revenue Code, plus, for taxable years ending on or after December 31, 2011, Section 45G(e)(3) of the Internal Revenue Code and, for taxable years ending on or after December 31, 2008, any amount included in gross income under Section 87 of the Internal Revenue Code;
(P) An amount equal to the amount of the deduction used to compute the federal income tax credit for restoration of substantial amounts held under claim of right for the taxable year pursuant to Section 1341 of the Internal Revenue Code or of any itemized deduction taken from adjusted gross income in the computation of taxable income for restoration of substantial amounts held under claim of right for the taxable year of 1986;
(P) An amount equal to the amount of the deduction used to compute the federal income tax credit for restoration of substantial amounts held under claim of right for the taxable year pursuant to Section 1341 of the Internal Revenue Code or of any itemized deduction taken from adjusted gross income in the computation of HB2955 Enrolled - 18 - LRB097 08285 HLH 48412 b taxable income for restoration of substantial amounts held under claim of right for the taxable year of 1986;
HB2955 Engrossed - 18 - LRB097 08285 HLH 48412 b (Q) An amount equal to any amounts included in such total, received by the taxpayer as an acceleration in the payment of life, endowment or annuity benefits in advance of the time they would otherwise be payable as an indemnity for a terminal illness;
(Q) An amount equal to any amounts included in such total, received by the taxpayer as an acceleration in the payment of life, endowment or annuity benefits in advance of the time they would otherwise be payable as an indemnity for a terminal illness;
(U) For one taxable year beginning on or after January 1, 1994, an amount equal to the total amount of tax imposed and paid under subsections (a) and (b) of Section 201 of this Act on grant amounts received by HB2955 Engrossed - 19 - LRB097 08285 HLH 48412 b the taxpayer under the Nursing Home Grant Assistance Act during the taxpayer's taxable years 1992 and 1993;
(U) For one taxable year beginning on or after January 1, 1994, an amount equal to the total amount of HB2955 Enrolled - 19 - LRB097 08285 HLH 48412 b tax imposed and paid under subsections (a) and (b) of Section 201 of this Act on grant amounts received by the taxpayer under the Nursing Home Grant Assistance Act during the taxpayer's taxable years 1992 and 1993;
The amount of the health insurance and long-term care insurance subtracted under this item (V) shall be determined by multiplying total health insurance and long-term care insurance premiums paid by the taxpayer times a number that represents the fractional HB2955 Engrossed - 20 - LRB097 08285 HLH 48412 b percentage of eligible medical expenses under Section 213 of the Internal Revenue Code of 1986 not actually deducted on the taxpayer's federal income tax return;
The amount of the health insurance and long-term care insurance subtracted under this item (V) shall be determined by multiplying total health insurance and HB2955 Enrolled - 20 - LRB097 08285 HLH 48412 b long-term care insurance premiums paid by the taxpayer times a number that represents the fractional percentage of eligible medical expenses under Section 213 of the Internal Revenue Code of 1986 not actually deducted on the taxpayer's federal income tax return;
(X) For taxable year 1999 and thereafter, an amount equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including, but not limited to, interest on the proceeds receivable as insurance under policies issued to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime by European insurance HB2955 Engrossed - 21 - LRB097 08285 HLH 48412 b companies immediately prior to and during World War II;
(X) For taxable year 1999 and thereafter, an amount equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including, but not limited to, interest on the proceeds receivable as insurance under policies issued to a victim of HB2955 Enrolled - 21 - LRB097 08285 HLH 48412 b persecution for racial or religious reasons by Nazi Germany or any other Axis regime by European insurance companies immediately prior to and during World War II;
For taxable years beginning on or after January 1, 2005, a maximum of $10,000 contributed in the taxable year to (i) a College Savings Pool account under Section 16.5 of the HB2955 Engrossed - 22 - LRB097 08285 HLH 48412 b State Treasurer Act or (ii) the Illinois Prepaid Tuition Trust Fund, except that amounts excluded from gross income under Section 529(c)(3)(C)(i) of the Internal Revenue Code shall not be considered moneys contributed under this subparagraph (Y).
For taxable years beginning on or after January 1, 2005, a maximum HB2955 Enrolled - 22 - LRB097 08285 HLH 48412 b of $10,000 contributed in the taxable year to (i) a College Savings Pool account under Section 16.5 of the State Treasurer Act or (ii) the Illinois Prepaid Tuition Trust Fund, except that amounts excluded from gross income under Section 529(c)(3)(C)(i) of the Internal Revenue Code shall not be considered moneys contributed under this subparagraph (Y).
(2) for taxable years ending on or before December 31, 2005, "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by HB2955 Engrossed - 23 - LRB097 08285 HLH 48412 b 0.429);
(2) for taxable years ending on or before HB2955 Enrolled - 23 - LRB097 08285 HLH 48412 b December 31, 2005, "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429);
(AA) If the taxpayer sells, transfers, abandons, or otherwise disposes of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-15), then an amount equal to that addition modification.
(AA) If the taxpayer sells, transfers, abandons, or otherwise disposes of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-15), then HB2955 Enrolled - 24 - LRB097 08285 HLH 48412 b an amount equal to that addition modification.
If the taxpayer continues to own property through HB2955 Engrossed - 24 - LRB097 08285 HLH 48412 b the last day of the last tax year for which the taxpayer may claim a depreciation deduction for federal income tax purposes and for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-15), then an amount equal to that addition modification.
If the taxpayer continues to own property through the last day of the last tax year for which the taxpayer may claim a depreciation deduction for federal income tax purposes and for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-15), then an amount equal to that addition modification.
(CC) The amount of (i) any interest income (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-17), 203(b)(2)(E-12), 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed the amount of that addition modification, and (ii) any income from intangible property (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with HB2955 Engrossed - 25 - LRB097 08285 HLH 48412 b respect to such transaction under Section 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 203(d)(2)(D-8), but not to exceed the amount of that addition modification.
(CC) The amount of (i) any interest income (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-17), 203(b)(2)(E-12), 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed the amount of that addition modification, and (ii) any income from intangible property (net of the deductions allocable thereto) taken into account for the taxable HB2955 Enrolled - 25 - LRB097 08285 HLH 48412 b year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 203(d)(2)(D-8), but not to exceed the amount of that addition modification.
This subparagraph (DD) is exempt from the provisions of Section 250;
This subparagraph (DD) HB2955 Enrolled - 26 - LRB097 08285 HLH 48412 b is exempt from the provisions of Section 250;
(EE) An amount equal to the income from intangible HB2955 Engrossed - 26 - LRB097 08285 HLH 48412 b property taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(a)(2)(D-18) for intangible expenses and costs paid, accrued, or incurred, directly or indirectly, to the same foreign person.
(EE) An amount equal to the income from intangible property taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(a)(2)(D-18) for intangible expenses and costs paid, accrued, or incurred, directly or indirectly, to the same foreign person.
This subparagraph (FF) is exempt from the provisions of Section 250;
HB2955 Enrolled - 27 - LRB097 08285 HLH 48412 b This subparagraph (FF) is exempt from the provisions of Section 250;
HB2955 Engrossed - 27 - LRB097 08285 HLH 48412 b (GG) For taxable years ending on or after December 31, 2011, in the case of a taxpayer who was required to add back any insurance premiums under Section 203(a)(2)(D-19), such taxpayer may elect to subtract that part of a reimbursement received from the insurance company equal to the amount of the expense or loss (including expenses incurred by the insurance company) that would have been taken into account as a deduction for federal income tax purposes if the expense or loss had been uninsured.
(GG) For taxable years ending on or after December 31, 2011, in the case of a taxpayer who was required to add back any insurance premiums under Section 203(a)(2)(D-19), such taxpayer may elect to subtract that part of a reimbursement received from the insurance company equal to the amount of the expense or loss (including expenses incurred by the insurance company) that would have been taken into account as a deduction for federal income tax purposes if the expense or loss had been uninsured.
(A) An amount equal to all amounts paid or accrued to the taxpayer as interest and all distributions received from regulated investment companies during HB2955 Engrossed - 28 - LRB097 08285 HLH 48412 b the taxable year to the extent excluded from gross income in the computation of taxable income;
(A) An amount equal to all amounts paid or accrued HB2955 Enrolled - 28 - LRB097 08285 HLH 48412 b to the taxpayer as interest and all distributions received from regulated investment companies during the taxable year to the extent excluded from gross income in the computation of taxable income;
(E) For taxable years in which a net operating loss carryback or carryforward from a taxable year ending prior to December 31, 1986 is an element of taxable income under paragraph (1) of subsection (e) or subparagraph (E) of paragraph (2) of subsection (e), the amount by which addition modifications other than those provided by this subparagraph (E) exceeded HB2955 Engrossed - 29 - LRB097 08285 HLH 48412 b subtraction modifications in such earlier taxable year, with the following limitations applied in the order that they are listed:
(E) For taxable years in which a net operating loss carryback or carryforward from a taxable year ending prior to December 31, 1986 is an element of taxable income under paragraph (1) of subsection (e) or subparagraph (E) of paragraph (2) of subsection (e), HB2955 Enrolled - 29 - LRB097 08285 HLH 48412 b the amount by which addition modifications other than those provided by this subparagraph (E) exceeded subtraction modifications in such earlier taxable year, with the following limitations applied in the order that they are listed:
(E-5) For taxable years ending after December 31, 1997, an amount equal to any eligible remediation costs that the corporation deducted in computing adjusted HB2955 Engrossed - 30 - LRB097 08285 HLH 48412 b gross income and for which the corporation claims a credit under subsection (l) of Section 201;
(E-5) For taxable years ending after December 31, HB2955 Enrolled - 30 - LRB097 08285 HLH 48412 b 1997, an amount equal to any eligible remediation costs that the corporation deducted in computing adjusted gross income and for which the corporation claims a credit under subsection (l) of Section 201;
(E-12) An amount equal to the amount otherwise allowed as a deduction in computing base income for HB2955 Engrossed - 31 - LRB097 08285 HLH 48412 b interest paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact the foreign person's business activity outside the United States is 80% or more of the foreign person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
HB2955 Enrolled - 31 - LRB097 08285 HLH 48412 b (E-12) An amount equal to the amount otherwise allowed as a deduction in computing base income for interest paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact the foreign person's business activity outside the United States is 80% or more of the foreign person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
The addition modification required by this subparagraph shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income pursuant to Sections 951 through 964 of the Internal Revenue Code and amounts included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the interest was paid, accrued, or incurred.
The addition modification required by this subparagraph shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income pursuant to Sections 951 through 964 of the Internal Revenue Code and amounts included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the interest was paid, accrued, or HB2955 Enrolled - 32 - LRB097 08285 HLH 48412 b incurred.
HB2955 Engrossed - 32 - LRB097 08285 HLH 48412 b (i) an item of interest paid, accrued, or incurred, directly or indirectly, to a person who is subject in a foreign country or state, other than a state which requires mandatory unitary reporting, to a tax on or measured by net income with respect to such interest;
(i) an item of interest paid, accrued, or incurred, directly or indirectly, to a person who is subject in a foreign country or state, other than a state which requires mandatory unitary reporting, to a tax on or measured by net income with respect to such interest;
or (iii) the taxpayer can establish, based on clear and convincing evidence, that the interest paid, accrued, or incurred relates to a contract or agreement entered into at arm's-length rates and terms and the principal purpose for the payment is HB2955 Engrossed - 33 - LRB097 08285 HLH 48412 b not federal or Illinois tax avoidance;
or (iii) the taxpayer can establish, based on clear and convincing evidence, that the interest paid, accrued, or incurred relates to a contract or HB2955 Enrolled - 33 - LRB097 08285 HLH 48412 b agreement entered into at arm's-length rates and terms and the principal purpose for the payment is not federal or Illinois tax avoidance;
(E-13) An amount equal to the amount of intangible expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business HB2955 Engrossed - 34 - LRB097 08285 HLH 48412 b activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
(E-13) An amount equal to the amount of intangible expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the HB2955 Enrolled - 34 - LRB097 08285 HLH 48412 b foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
As used in this subparagraph, the term "intangible expenses and costs" includes (1) expenses, losses, and costs for, or related to, the direct or indirect acquisition, use, maintenance or management, HB2955 Engrossed - 35 - LRB097 08285 HLH 48412 b ownership, sale, exchange, or any other disposition of intangible property;
As used in this subparagraph, the term "intangible expenses and costs" includes (1) expenses, HB2955 Enrolled - 35 - LRB097 08285 HLH 48412 b losses, and costs for, or related to, the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, or any other disposition of intangible property;
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(a) the person during the same taxable year paid, accrued, or incurred, the intangible expense or cost to a person that is HB2955 Engrossed - 36 - LRB097 08285 HLH 48412 b not a related member, and (b) the transaction giving rise to the intangible expense or cost between the taxpayer and the person did not have as a principal purpose the avoidance of Illinois income tax, and is paid pursuant to a contract or agreement that reflects arm's-length terms;
(a) the person during the same taxable HB2955 Enrolled - 36 - LRB097 08285 HLH 48412 b year paid, accrued, or incurred, the intangible expense or cost to a person that is not a related member, and (b) the transaction giving rise to the intangible expense or cost between the taxpayer and the person did not have as a principal purpose the avoidance of Illinois income tax, and is paid pursuant to a contract or agreement that reflects arm's-length terms;
Nothing in this subsection shall preclude the Director from making any other adjustment otherwise allowed under Section 404 of this Act for any tax year beginning after the effective date of this amendment provided such adjustment is made pursuant to regulation adopted by the Department and such regulations provide methods and standards by which the Department will utilize its authority under Section 404 of this Act;
Nothing in this subsection shall preclude the Director from making any other adjustment otherwise allowed under Section 404 of this Act for any tax year beginning after the effective date of this amendment provided such adjustment is made pursuant to regulation adopted by the Department and such regulations provide methods and standards by which the Department will utilize its authority HB2955 Enrolled - 37 - LRB097 08285 HLH 48412 b under Section 404 of this Act;
(E-14) For taxable years ending on or after HB2955 Engrossed - 37 - LRB097 08285 HLH 48412 b December 31, 2008, an amount equal to the amount of insurance premium expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
(E-14) For taxable years ending on or after December 31, 2008, an amount equal to the amount of insurance premium expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
The preceding sentence does not apply to the extent that the same dividends caused a reduction to the addition modification required under Section 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this Act;
The preceding sentence does not apply to the extent that the same dividends caused a reduction to the addition modification required under Section 203(b)(2)(E-12) or HB2955 Enrolled - 38 - LRB097 08285 HLH 48412 b Section 203(b)(2)(E-13) of this Act;
(E-15) For taxable years beginning after December HB2955 Engrossed - 38 - LRB097 08285 HLH 48412 b 31, 2008, any deduction for dividends paid by a captive real estate investment trust that is allowed to a real estate investment trust under Section 857(b)(2)(B) of the Internal Revenue Code for dividends paid;
(E-15) For taxable years beginning after December 31, 2008, any deduction for dividends paid by a captive real estate investment trust that is allowed to a real estate investment trust under Section 857(b)(2)(B) of the Internal Revenue Code for dividends paid;
(I) With the exception of any amounts subtracted under subparagraph (J), an amount equal to the sum of all amounts disallowed as deductions by (i) Sections 171(a) (2), and 265(a)(2) and amounts disallowed as interest expense by Section 291(a)(3) of the Internal Revenue Code, as now or hereafter amended , and all HB2955 Engrossed - 39 - LRB097 08285 HLH 48412 b amounts of expenses allocable to interest and disallowed as deductions by Section 265(a)(1) of the Internal Revenue Code, as now or hereafter amended;
(I) With the exception of any amounts subtracted under subparagraph (J), an amount equal to the sum of all amounts disallowed as deductions by (i) Sections 171(a) (2), and 265(a)(2) and amounts disallowed as HB2955 Enrolled - 39 - LRB097 08285 HLH 48412 b interest expense by Section 291(a)(3) of the Internal Revenue Code, as now or hereafter amended, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(a)(1) of the Internal Revenue Code, as now or hereafter amended;
and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i) of the Internal Revenue Code, plus, for tax years ending on or after December 31, 2011, amounts disallowed as deductions by Section 45G(e)(3) of the Internal Revenue Code and any amount included in gross income under Section 87 of the Internal Revenue Code and the policyholders' share of tax-exempt interest of a life insurance company under Section 807(a)(2)(B) of the Internal Revenue Code (in the case of a life insurance company with gross income from a decrease in reserves for the tax year) or Section 807(b)(1)(B) of the Internal Revenue Code (in the case of a life insurance company allowed a deduction for an increase in reserves for the tax year);
and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i) of the Internal Revenue Code, plus, for tax years ending on or after December 31, 2011, amounts disallowed as deductions by Section 45G(e)(3) of the Internal Revenue Code and, for taxable years ending on or after December 31, 2008, any amount included in gross income under Section 87 of the Internal Revenue Code and the policyholders' share of tax-exempt interest of a life insurance company under Section 807(a)(2)(B) of the Internal Revenue Code (in the case of a life insurance company with gross income from a decrease in reserves for the tax year) or Section 807(b)(1)(B) of the Internal Revenue Code (in the case of a life insurance company allowed a deduction for an increase in reserves for the tax year);
(J) An amount equal to all amounts included in such total which are exempt from taxation by this State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States;
(J) An amount equal to all amounts included in such total which are exempt from taxation by this State either by reason of its statutes or Constitution or by HB2955 Enrolled - 40 - LRB097 08285 HLH 48412 b reason of the Constitution, treaties or statutes of the United States;
provided that, in the case of any statute of this State that exempts income derived from HB2955 Engrossed - 40 - LRB097 08285 HLH 48412 b bonds or other obligations from the tax imposed under this Act, the amount exempted shall be the interest net of bond premium amortization;
provided that, in the case of any statute of this State that exempts income derived from bonds or other obligations from the tax imposed under this Act, the amount exempted shall be the interest net of bond premium amortization;
(M) For any taxpayer that is a financial organization within the meaning of Section 304(c) of this Act, an amount included in such total as interest income from a loan or loans made by such taxpayer to a HB2955 Engrossed - 41 - LRB097 08285 HLH 48412 b borrower, to the extent that such a loan is secured by property which is eligible for the Enterprise Zone Investment Credit or the River Edge Redevelopment Zone Investment Credit.
(M) For any taxpayer that is a financial HB2955 Enrolled - 41 - LRB097 08285 HLH 48412 b organization within the meaning of Section 304(c) of this Act, an amount included in such total as interest income from a loan or loans made by such taxpayer to a borrower, to the extent that such a loan is secured by property which is eligible for the Enterprise Zone Investment Credit or the River Edge Redevelopment Zone Investment Credit.
(M-1) For any taxpayer that is a financial organization within the meaning of Section 304(c) of this Act, an amount included in such total as interest income from a loan or loans made by such taxpayer to a borrower, to the extent that such a loan is secured by property which is eligible for the High Impact Business HB2955 Engrossed - 42 - LRB097 08285 HLH 48412 b Investment Credit.
(M-1) For any taxpayer that is a financial organization within the meaning of Section 304(c) of this Act, an amount included in such total as interest HB2955 Enrolled - 42 - LRB097 08285 HLH 48412 b income from a loan or loans made by such taxpayer to a borrower, to the extent that such a loan is secured by property which is eligible for the High Impact Business Investment Credit.
(N) Two times any contribution made during the taxable year to a designated zone organization to the extent that the contribution (i) qualifies as a charitable contribution under subsection (c) of Section 170 of the Internal Revenue Code and (ii) must, by its terms, be used for a project approved by the Department of Commerce and Economic Opportunity under HB2955 Engrossed - 43 - LRB097 08285 HLH 48412 b Section 11 of the Illinois Enterprise Zone Act or under Section 10-10 of the River Edge Redevelopment Zone Act.
(N) Two times any contribution made during the taxable year to a designated zone organization to the extent that the contribution (i) qualifies as a charitable contribution under subsection (c) of HB2955 Enrolled - 43 - LRB097 08285 HLH 48412 b Section 170 of the Internal Revenue Code and (ii) must, by its terms, be used for a project approved by the Department of Commerce and Economic Opportunity under Section 11 of the Illinois Enterprise Zone Act or under Section 10-10 of the River Edge Redevelopment Zone Act.
plus (ii) 100% of the amount by which dividends, included in taxable income and received, including, for taxable years ending on or after December 31, 1988, dividends received or deemed received or paid or deemed paid under Sections 951 HB2955 Engrossed - 44 - LRB097 08285 HLH 48412 b through 964 of the Internal Revenue Code and including, for taxable years ending on or after December 31, 2008, dividends received from a captive real estate investment trust, from any such corporation specified in clause (i) that would but for the provisions of Section 1504 (b) (3) of the Internal Revenue Code be treated as a member of the affiliated group which includes the dividend recipient, exceed the amount of the modification provided under subparagraph (G) of paragraph (2) of this subsection (b) which is related to such dividends.
plus (ii) 100% of the amount by which dividends, included in taxable income HB2955 Enrolled - 44 - LRB097 08285 HLH 48412 b and received, including, for taxable years ending on or after December 31, 1988, dividends received or deemed received or paid or deemed paid under Sections 951 through 964 of the Internal Revenue Code and including, for taxable years ending on or after December 31, 2008, dividends received from a captive real estate investment trust, from any such corporation specified in clause (i) that would but for the provisions of Section 1504 (b) (3) of the Internal Revenue Code be treated as a member of the affiliated group which includes the dividend recipient, exceed the amount of the modification provided under subparagraph (G) of paragraph (2) of this subsection (b) which is related to such dividends.
(R) On and after July 20, 1999, in the case of an attorney-in-fact with respect to whom an interinsurer or a reciprocal insurer has made the election under Section 835 of the Internal Revenue Code, 26 U.S.C.
(R) On and after July 20, 1999, in the case of an attorney-in-fact with respect to whom an interinsurer or a reciprocal insurer has made the election under HB2955 Enrolled - 45 - LRB097 08285 HLH 48412 b Section 835 of the Internal Revenue Code, 26 U.S.C.
835, an amount equal to the excess, if any, of the amounts paid or incurred by that interinsurer or HB2955 Engrossed - 45 - LRB097 08285 HLH 48412 b reciprocal insurer in the taxable year to the attorney-in-fact over the deduction allowed to that interinsurer or reciprocal insurer with respect to the attorney-in-fact under Section 835(b) of the Internal Revenue Code for the taxable year;
835, an amount equal to the excess, if any, of the amounts paid or incurred by that interinsurer or reciprocal insurer in the taxable year to the attorney-in-fact over the deduction allowed to that interinsurer or reciprocal insurer with respect to the attorney-in-fact under Section 835(b) of the Internal Revenue Code for the taxable year;
(1) "y" equals the amount of the depreciation deduction taken for the taxable year on the taxpayer's federal income tax return on property HB2955 Engrossed - 46 - LRB097 08285 HLH 48412 b for which the bonus depreciation deduction was taken in any year under subsection (k) of Section 168 of the Internal Revenue Code, but not including the bonus depreciation deduction;
HB2955 Enrolled - 46 - LRB097 08285 HLH 48412 b (1) "y" equals the amount of the depreciation deduction taken for the taxable year on the taxpayer's federal income tax return on property for which the bonus depreciation deduction was taken in any year under subsection (k) of Section 168 of the Internal Revenue Code, but not including the bonus depreciation deduction;
The aggregate amount deducted under this subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code.
The aggregate amount deducted under this subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction taken on that property on the HB2955 Enrolled - 47 - LRB097 08285 HLH 48412 b taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code.
This subparagraph (T) is exempt from the provisions of HB2955 Engrossed - 47 - LRB097 08285 HLH 48412 b Section 250;
This subparagraph (T) is exempt from the provisions of Section 250;
(i) any interest income (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-17), 203(b)(2)(E-12), 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed the amount of such addition modification, (ii) any HB2955 Engrossed - 48 - LRB097 08285 HLH 48412 b income from intangible property (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 203(d)(2)(D-8), but not to exceed the amount of such addition modification, and (iii) any insurance premium income (net of deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-19), Section 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section 203(d)(2)(D-9), but not to exceed the amount of that addition modification.
(i) any interest income (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under HB2955 Enrolled - 48 - LRB097 08285 HLH 48412 b Section 203(a)(2)(D-17), 203(b)(2)(E-12), 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed the amount of such addition modification, (ii) any income from intangible property (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 203(d)(2)(D-8), but not to exceed the amount of such addition modification, and (iii) any insurance premium income (net of deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-19), Section 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section 203(d)(2)(D-9), but not to exceed the amount of that addition modification.
(W) An amount equal to the interest income taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person HB2955 Engrossed - 49 - LRB097 08285 HLH 48412 b who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(b)(2)(E-12) for interest paid, accrued, or incurred, directly or indirectly, to the same person.
(W) An amount equal to the interest income taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity HB2955 Enrolled - 49 - LRB097 08285 HLH 48412 b outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(b)(2)(E-12) for interest paid, accrued, or incurred, directly or indirectly, to the same person.
and (X) An amount equal to the income from intangible property taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the HB2955 Engrossed - 50 - LRB097 08285 HLH 48412 b addition modification required to be made for the same taxable year under Section 203(b)(2)(E-13) for intangible expenses and costs paid, accrued, or incurred, directly or indirectly, to the same foreign person.
and (X) An amount equal to the income from intangible property taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the HB2955 Enrolled - 50 - LRB097 08285 HLH 48412 b unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(b)(2)(E-13) for intangible expenses and costs paid, accrued, or incurred, directly or indirectly, to the same foreign person.
and (Z) The difference between the nondeductible controlled foreign corporation dividends under Section 965(e)(3) of the Internal Revenue Code over the taxable income of the taxpayer, computed without regard to Section 965(e)(2)(A) of the Internal Revenue Code, and HB2955 Engrossed - 51 - LRB097 08285 HLH 48412 b without regard to any net operating loss deduction.
and (Z) The difference between the nondeductible controlled foreign corporation dividends under Section HB2955 Enrolled - 51 - LRB097 08285 HLH 48412 b 965(e)(3) of the Internal Revenue Code over the taxable income of the taxpayer, computed without regard to Section 965(e)(2)(A) of the Internal Revenue Code, and without regard to any net operating loss deduction.
(A) An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of taxable income;
(A) An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income HB2955 Enrolled - 52 - LRB097 08285 HLH 48412 b in the computation of taxable income;
(ii) a trust which, under its governing instrument, is HB2955 Engrossed - 52 - LRB097 08285 HLH 48412 b required to distribute all of its income currently, $300;
(ii) a trust which, under its governing instrument, is required to distribute all of its income currently, $300;
(i) the addition modification relating to the net operating loss carried back or forward to the taxable year from any taxable year ending prior to December 31, 1986 shall be reduced by the amount of addition modification under this subparagraph (E) HB2955 Engrossed - 53 - LRB097 08285 HLH 48412 b which related to that net operating loss and which was taken into account in calculating the base income of an earlier taxable year, and (ii) the addition modification relating to the net operating loss carried back or forward to the taxable year from any taxable year ending prior to December 31, 1986 shall not exceed the amount of such carryback or carryforward;
(i) the addition modification relating to the net operating loss carried back or forward to the HB2955 Enrolled - 53 - LRB097 08285 HLH 48412 b taxable year from any taxable year ending prior to December 31, 1986 shall be reduced by the amount of addition modification under this subparagraph (E) which related to that net operating loss and which was taken into account in calculating the base income of an earlier taxable year, and (ii) the addition modification relating to the net operating loss carried back or forward to the taxable year from any taxable year ending prior to December 31, 1986 shall not exceed the amount of such carryback or carryforward;
(G) An amount equal to the amount of the capital gain deduction allowable under the Internal Revenue Code, to the extent deducted from gross income in the computation of taxable income;
(G) An amount equal to the amount of the capital gain deduction allowable under the Internal Revenue HB2955 Enrolled - 54 - LRB097 08285 HLH 48412 b Code, to the extent deducted from gross income in the computation of taxable income;
(G-5) For taxable years ending after December 31, HB2955 Engrossed - 54 - LRB097 08285 HLH 48412 b 1997, an amount equal to any eligible remediation costs that the trust or estate deducted in computing adjusted gross income and for which the trust or estate claims a credit under subsection (l) of Section 201;
(G-5) For taxable years ending after December 31, 1997, an amount equal to any eligible remediation costs that the trust or estate deducted in computing adjusted gross income and for which the trust or estate claims a credit under subsection (l) of Section 201;
The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;
HB2955 Enrolled - 55 - LRB097 08285 HLH 48412 b The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;
HB2955 Engrossed - 55 - LRB097 08285 HLH 48412 b (G-12) An amount equal to the amount otherwise allowed as a deduction in computing base income for interest paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of the foreign person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
(G-12) An amount equal to the amount otherwise allowed as a deduction in computing base income for interest paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of the foreign person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
The addition modification required by this subparagraph shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income pursuant to Sections 951 through 964 of the Internal Revenue Code and amounts included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the interest was paid, accrued, or HB2955 Engrossed - 56 - LRB097 08285 HLH 48412 b incurred.
The addition modification required by this subparagraph shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income pursuant to Sections 951 through 964 of the Internal Revenue Code and amounts HB2955 Enrolled - 56 - LRB097 08285 HLH 48412 b included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the interest was paid, accrued, or incurred.
or (iii) the taxpayer can establish, based on clear and convincing evidence, that the interest paid, accrued, or incurred relates to a contract or HB2955 Engrossed - 57 - LRB097 08285 HLH 48412 b agreement entered into at arm's-length rates and terms and the principal purpose for the payment is not federal or Illinois tax avoidance;
or HB2955 Enrolled - 57 - LRB097 08285 HLH 48412 b (iii) the taxpayer can establish, based on clear and convincing evidence, that the interest paid, accrued, or incurred relates to a contract or agreement entered into at arm's-length rates and terms and the principal purpose for the payment is not federal or Illinois tax avoidance;
(G-13) An amount equal to the amount of intangible expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the HB2955 Engrossed - 58 - LRB097 08285 HLH 48412 b foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
(G-13) An amount equal to the amount of intangible expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, (i) for taxable HB2955 Enrolled - 58 - LRB097 08285 HLH 48412 b years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
The preceding sentence shall not apply to the extent that the same dividends caused a reduction to the addition modification required under Section 203(c)(2)(G-12) of this Act.
The preceding sentence shall not apply to the extent that the same dividends caused a reduction to the addition HB2955 Enrolled - 59 - LRB097 08285 HLH 48412 b modification required under Section 203(c)(2)(G-12) of this Act.
(1) HB2955 Engrossed - 59 - LRB097 08285 HLH 48412 b expenses, losses, and costs for or related to the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, or any other disposition of intangible property;
(1) expenses, losses, and costs for or related to the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, or any other disposition of intangible property;
or (ii) any item of intangible expense or cost paid, accrued, or incurred, directly or indirectly, if the taxpayer can establish, based on a preponderance of the evidence, both of the following:
or (ii) any item of intangible expense or cost paid, accrued, or incurred, directly or indirectly, if the taxpayer can establish, based HB2955 Enrolled - 60 - LRB097 08285 HLH 48412 b on a preponderance of the evidence, both of the following:
(a) the person during the same taxable HB2955 Engrossed - 60 - LRB097 08285 HLH 48412 b year paid, accrued, or incurred, the intangible expense or cost to a person that is not a related member, and (b) the transaction giving rise to the intangible expense or cost between the taxpayer and the person did not have as a principal purpose the avoidance of Illinois income tax, and is paid pursuant to a contract or agreement that reflects arm's-length terms;
(a) the person during the same taxable year paid, accrued, or incurred, the intangible expense or cost to a person that is not a related member, and (b) the transaction giving rise to the intangible expense or cost between the taxpayer and the person did not have as a principal purpose the avoidance of Illinois income tax, and is paid pursuant to a contract or agreement that reflects arm's-length terms;
Nothing in this subsection shall preclude the Director from making any other adjustment otherwise allowed under Section 404 of this Act for any tax year beginning after the effective date of this amendment provided such adjustment is made pursuant to regulation adopted by the Department and such regulations provide methods and standards by which the Department will utilize its authority HB2955 Engrossed - 61 - LRB097 08285 HLH 48412 b under Section 404 of this Act;
Nothing in this subsection shall preclude the Director from making any other adjustment otherwise allowed under Section 404 of this Act for any tax year beginning after the effective date of this amendment provided such adjustment is made HB2955 Enrolled - 61 - LRB097 08285 HLH 48412 b pursuant to regulation adopted by the Department and such regulations provide methods and standards by which the Department will utilize its authority under Section 404 of this Act;
The preceding sentence does not apply to the extent that the same dividends caused a reduction to the addition modification required under Section 203(c)(2)(G-12) or HB2955 Engrossed - 62 - LRB097 08285 HLH 48412 b Section 203(c)(2)(G-13) of this Act;
The HB2955 Enrolled - 62 - LRB097 08285 HLH 48412 b preceding sentence does not apply to the extent that the same dividends caused a reduction to the addition modification required under Section 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this Act;
(K) An amount equal to all amounts included in taxable income as modified by subparagraphs (A), (B), (C), (D), (E), (F) and (G) which are exempt from taxation by this State either by reason of its statutes HB2955 Engrossed - 63 - LRB097 08285 HLH 48412 b or Constitution or by reason of the Constitution, treaties or statutes of the United States;
(K) An amount equal to all amounts included in HB2955 Enrolled - 63 - LRB097 08285 HLH 48412 b taxable income as modified by subparagraphs (A), (B), (C), (D), (E), (F) and (G) which are exempt from taxation by this State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States;
and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue Code, plus, (iii) for taxable years ending on or after December 31, 2011, Section 45G(e)(3) of the Internal Revenue Code and any amount included in gross income under Section 87 of the Internal Revenue Code;
and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue Code, plus, (iii) for taxable years ending on or after December 31, 2011, Section 45G(e)(3) of the Internal Revenue Code and, for taxable years ending on or after December 31, 2008, any amount included in gross income under Section 87 of the Internal Revenue Code;
the provisions of this subparagraph are exempt from the provisions of Section 250;
the provisions of this HB2955 Enrolled - 64 - LRB097 08285 HLH 48412 b subparagraph are exempt from the provisions of Section 250;
(M) An amount equal to those dividends included in such total which were paid by a corporation which HB2955 Engrossed - 64 - LRB097 08285 HLH 48412 b conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act or a River Edge Redevelopment Zone or zones created under the River Edge Redevelopment Zone Act and conducts substantially all of its operations in an Enterprise Zone or Zones or a River Edge Redevelopment Zone or zones.
(M) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act or a River Edge Redevelopment Zone or zones created under the River Edge Redevelopment Zone Act and conducts substantially all of its operations in an Enterprise Zone or Zones or a River Edge Redevelopment Zone or zones.
(P) An amount equal to the amount of the deduction used to compute the federal income tax credit for restoration of substantial amounts held under claim of right for the taxable year pursuant to Section 1341 of the Internal Revenue Code of 1986 ;
(P) An amount equal to the amount of the deduction used to compute the federal income tax credit for HB2955 Enrolled - 65 - LRB097 08285 HLH 48412 b restoration of substantial amounts held under claim of right for the taxable year pursuant to Section 1341 of the Internal Revenue Code of 1986;
(Q) For taxable year 1999 and thereafter, an amount HB2955 Engrossed - 65 - LRB097 08285 HLH 48412 b equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including, but not limited to, interest on the proceeds receivable as insurance under policies issued to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime by European insurance companies immediately prior to and during World War II;
(Q) For taxable year 1999 and thereafter, an amount equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including, but not limited to, interest on the proceeds receivable as insurance under policies issued to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime by European insurance companies immediately prior to and during World War II;
provided, further, this paragraph shall only apply to a taxpayer who was the first recipient of such assets after their recovery and who is a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the HB2955 Engrossed - 66 - LRB097 08285 HLH 48412 b victim.
provided, further, this paragraph shall HB2955 Enrolled - 66 - LRB097 08285 HLH 48412 b only apply to a taxpayer who was the first recipient of such assets after their recovery and who is a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim.
(2) for taxable years ending on or before December 31, 2005, "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429);
(2) for taxable years ending on or before December 31, 2005, "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by HB2955 Enrolled - 67 - LRB097 08285 HLH 48412 b 0.429);
(i) for property on which a bonus HB2955 Engrossed - 67 - LRB097 08285 HLH 48412 b depreciation deduction of 30% of the adjusted basis was taken, "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429);
(i) for property on which a bonus depreciation deduction of 30% of the adjusted basis was taken, "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429);
If the taxpayer continues to own property through the last day of the last tax year for which the taxpayer may claim a depreciation deduction for federal income tax purposes and for which the taxpayer was required in any taxable year to make an addition HB2955 Engrossed - 68 - LRB097 08285 HLH 48412 b modification under subparagraph (G-10), then an amount equal to that addition modification.
If the taxpayer continues to own property through HB2955 Enrolled - 68 - LRB097 08285 HLH 48412 b the last day of the last tax year for which the taxpayer may claim a depreciation deduction for federal income tax purposes and for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (G-10), then an amount equal to that addition modification.
(T) The amount of (i) any interest income (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-17), 203(b)(2)(E-12), 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed the amount of such addition modification and (ii) any income from intangible property (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 203(d)(2)(D-8), but not to exceed the amount of such addition modification.
(T) The amount of (i) any interest income (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-17), 203(b)(2)(E-12), 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed the amount of such addition modification and (ii) any income from intangible property (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 203(d)(2)(D-8), but not to exceed the amount of such HB2955 Enrolled - 69 - LRB097 08285 HLH 48412 b addition modification.
(U) An amount equal to the interest income taken into account for the taxable year (net of the HB2955 Engrossed - 69 - LRB097 08285 HLH 48412 b deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(c)(2)(G-12) for interest paid, accrued, or incurred, directly or indirectly, to the same person.
(U) An amount equal to the interest income taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(c)(2)(G-12) for interest paid, accrued, or incurred, directly or indirectly, to the same person.
and (V) An amount equal to the income from intangible property taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable HB2955 Engrossed - 70 - LRB097 08285 HLH 48412 b years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(c)(2)(G-13) for intangible expenses and costs paid, accrued, or incurred, directly or indirectly, to the same foreign person.
and (V) An amount equal to the income from intangible property taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a HB2955 Enrolled - 70 - LRB097 08285 HLH 48412 b member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(c)(2)(G-13) for intangible expenses and costs paid, accrued, or incurred, directly or indirectly, to the same foreign person.
(X) an amount equal to the refund included in such total of any tax deducted for federal income tax purposes, to the extent that deduction was added back under subparagraph (F).
(X) an amount equal to the refund included in such total of any tax deducted for federal income tax HB2955 Enrolled - 71 - LRB097 08285 HLH 48412 b purposes, to the extent that deduction was added back under subparagraph (F).
and (Y) For taxable years ending on or after December HB2955 Engrossed - 71 - LRB097 08285 HLH 48412 b 31, 2011, in the case of a taxpayer who was required to add back any insurance premiums under Section 203(c)(2)(G-14), such taxpayer may elect to subtract that part of a reimbursement received from the insurance company equal to the amount of the expense or loss (including expenses incurred by the insurance company) that would have been taken into account as a deduction for federal income tax purposes if the expense or loss had been uninsured.
and (Y) For taxable years ending on or after December 31, 2011, in the case of a taxpayer who was required to add back any insurance premiums under Section 203(c)(2)(G-14), such taxpayer may elect to subtract that part of a reimbursement received from the insurance company equal to the amount of the expense or loss (including expenses incurred by the insurance company) that would have been taken into account as a deduction for federal income tax purposes if the expense or loss had been uninsured.
(d) Partnerships.
HB2955 Enrolled - 72 - LRB097 08285 HLH 48412 b (d) Partnerships.
HB2955 Engrossed - 72 - LRB097 08285 HLH 48412 b (2) Modifications.
(2) Modifications.
(D-6) If the taxpayer sells, transfers, abandons, or otherwise disposes of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-5), then HB2955 Engrossed - 73 - LRB097 08285 HLH 48412 b an amount equal to the aggregate amount of the deductions taken in all taxable years under subparagraph (O) with respect to that property.
HB2955 Enrolled - 73 - LRB097 08285 HLH 48412 b (D-6) If the taxpayer sells, transfers, abandons, or otherwise disposes of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-5), then an amount equal to the aggregate amount of the deductions taken in all taxable years under subparagraph (O) with respect to that property.
(D-7) An amount equal to the amount otherwise allowed as a deduction in computing base income for interest paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact the foreign person's business activity outside the United States is 80% or more of the foreign person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the HB2955 Engrossed - 74 - LRB097 08285 HLH 48412 b unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
(D-7) An amount equal to the amount otherwise allowed as a deduction in computing base income for interest paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact the foreign person's business activity outside the United States is 80% or more of the foreign person's total business activity and (ii) for taxable HB2955 Enrolled - 74 - LRB097 08285 HLH 48412 b years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
or (ii) an item of interest paid, accrued, or incurred, directly or indirectly, to a person if the taxpayer can establish, based on a preponderance of the evidence, both of the following:
or (ii) an item of interest paid, accrued, or HB2955 Enrolled - 75 - LRB097 08285 HLH 48412 b incurred, directly or indirectly, to a person if the taxpayer can establish, based on a preponderance of the evidence, both of the following:
HB2955 Engrossed - 75 - LRB097 08285 HLH 48412 b (a) the person, during the same taxable year, paid, accrued, or incurred, the interest to a person that is not a related member, and (b) the transaction giving rise to the interest expense between the taxpayer and the person did not have as a principal purpose the avoidance of Illinois income tax, and is paid pursuant to a contract or agreement that reflects an arm's-length interest rate and terms;
(a) the person, during the same taxable year, paid, accrued, or incurred, the interest to a person that is not a related member, and (b) the transaction giving rise to the interest expense between the taxpayer and the person did not have as a principal purpose the avoidance of Illinois income tax, and is paid pursuant to a contract or agreement that reflects an arm's-length interest rate and terms;
or if the taxpayer and the Director agree in writing to the application or use of an alternative method of apportionment under Section 304(f).
or if the taxpayer and the Director agree in writing to the application or use of an alternative method HB2955 Enrolled - 76 - LRB097 08285 HLH 48412 b of apportionment under Section 304(f).
Nothing in this subsection shall preclude the Director from making any other adjustment otherwise allowed under Section 404 of this Act for HB2955 Engrossed - 76 - LRB097 08285 HLH 48412 b any tax year beginning after the effective date of this amendment provided such adjustment is made pursuant to regulation adopted by the Department and such regulations provide methods and standards by which the Department will utilize its authority under Section 404 of this Act;
Nothing in this subsection shall preclude the Director from making any other adjustment otherwise allowed under Section 404 of this Act for any tax year beginning after the effective date of this amendment provided such adjustment is made pursuant to regulation adopted by the Department and such regulations provide methods and standards by which the Department will utilize its authority under Section 404 of this Act;
and (D-8) An amount equal to the amount of intangible expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
and (D-8) An amount equal to the amount of intangible expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, (i) for taxable years ending on or after December 31, 2004, to a foreign person who would be a member of the same unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section HB2955 Enrolled - 77 - LRB097 08285 HLH 48412 b 304.
The addition modification required by this subparagraph shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the HB2955 Engrossed - 77 - LRB097 08285 HLH 48412 b taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income pursuant to Sections 951 through 964 of the Internal Revenue Code and amounts included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the intangible expenses and costs were directly or indirectly paid, incurred or accrued.
The addition modification required by this subparagraph shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income pursuant to Sections 951 through 964 of the Internal Revenue Code and amounts included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the intangible expenses and costs were directly or indirectly paid, incurred or accrued.
For purposes of this subparagraph, "intangible property" includes patents, patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets, and similar types of intangible assets;
For purposes of this subparagraph, "intangible property" includes patents, HB2955 Enrolled - 78 - LRB097 08285 HLH 48412 b patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets, and similar types of intangible assets;
HB2955 Engrossed - 78 - LRB097 08285 HLH 48412 b (i) any item of intangible expenses or costs paid, accrued, or incurred, directly or indirectly, from a transaction with a person who is subject in a foreign country or state, other than a state which requires mandatory unitary reporting, to a tax on or measured by net income with respect to such item;
(i) any item of intangible expenses or costs paid, accrued, or incurred, directly or indirectly, from a transaction with a person who is subject in a foreign country or state, other than a state which requires mandatory unitary reporting, to a tax on or measured by net income with respect to such item;
or (iii) any item of intangible expense or cost paid, accrued, or incurred, directly or indirectly, from a transaction with a person if the HB2955 Engrossed - 79 - LRB097 08285 HLH 48412 b taxpayer establishes by clear and convincing evidence, that the adjustments are unreasonable;
HB2955 Enrolled - 79 - LRB097 08285 HLH 48412 b or (iii) any item of intangible expense or cost paid, accrued, or incurred, directly or indirectly, from a transaction with a person if the taxpayer establishes by clear and convincing evidence, that the adjustments are unreasonable;
(D-9) For taxable years ending on or after December 31, 2008, an amount equal to the amount of insurance premium expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
(D-9) For taxable years ending on or after December 31, 2008, an amount equal to the amount of insurance premium expenses and costs otherwise allowed as a deduction in computing base income, and that were paid, accrued, or incurred, directly or indirectly, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being HB2955 Enrolled - 80 - LRB097 08285 HLH 48412 b included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304.
The addition modification required by this subparagraph HB2955 Engrossed - 80 - LRB097 08285 HLH 48412 b shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income under Sections 951 through 964 of the Internal Revenue Code and amounts included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the premiums and costs were directly or indirectly paid, incurred, or accrued.
The addition modification required by this subparagraph shall be reduced to the extent that dividends were included in base income of the unitary group for the same taxable year and received by the taxpayer or by a member of the taxpayer's unitary business group (including amounts included in gross income under Sections 951 through 964 of the Internal Revenue Code and amounts included in gross income under Section 78 of the Internal Revenue Code) with respect to the stock of the same person to whom the premiums and costs were directly or indirectly paid, incurred, or accrued.
(F) An amount equal to the amount of any tax imposed by this Act which was refunded to the taxpayer and included in such total for the taxable year;
(F) An amount equal to the amount of any tax HB2955 Enrolled - 81 - LRB097 08285 HLH 48412 b imposed by this Act which was refunded to the taxpayer and included in such total for the taxable year;
(G) An amount equal to all amounts included in taxable income as modified by subparagraphs (A), (B), HB2955 Engrossed - 81 - LRB097 08285 HLH 48412 b (C) and (D) which are exempt from taxation by this State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States;
(G) An amount equal to all amounts included in taxable income as modified by subparagraphs (A), (B), (C) and (D) which are exempt from taxation by this State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States;
(I) An amount equal to all amounts of income distributable to an entity subject to the Personal Property Tax Replacement Income Tax imposed by subsections (c) and (d) of Section 201 of this Act including amounts distributable to organizations exempt from federal income tax by reason of Section 501(a) of the Internal Revenue Code;
(I) An amount equal to all amounts of income distributable to an entity subject to the Personal Property Tax Replacement Income Tax imposed by subsections (c) and (d) of Section 201 of this Act including amounts distributable to organizations exempt from federal income tax by reason of Section HB2955 Enrolled - 82 - LRB097 08285 HLH 48412 b 501(a) of the Internal Revenue Code;
(J) With the exception of any amounts subtracted under subparagraph (G), an amount equal to the sum of HB2955 Engrossed - 82 - LRB097 08285 HLH 48412 b all amounts disallowed as deductions by (i) Sections 171(a) (2), and 265(2) of the Internal Revenue Code of 1954, as now or hereafter amended, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(1) of the Internal Revenue Code, as now or hereafter amended;
(J) With the exception of any amounts subtracted under subparagraph (G), an amount equal to the sum of all amounts disallowed as deductions by (i) Sections 171(a) (2), and 265(2) of the Internal Revenue Code of 1954, as now or hereafter amended, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(1) of the Internal Revenue Code, as now or hereafter amended;
and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue Code, plus, (iii) for taxable years ending on or after December 31, 2011, Section 45G(e)(3) of the Internal Revenue Code and any amount included in gross income under Section 87 of the Internal Revenue Code;
and (ii) for taxable years ending on or after August 13, 1999, Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue Code, plus, (iii) for taxable years ending on or after December 31, 2011, Section 45G(e)(3) of the Internal Revenue Code and, for taxable years ending on or after December 31, 2008, any amount included in gross income under Section 87 of the Internal Revenue Code;
(K) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act, enacted by the 82nd General Assembly, or a River Edge Redevelopment Zone or zones created under the River Edge Redevelopment Zone Act and conducts substantially all of its operations in an Enterprise Zone or Zones or from a River Edge Redevelopment Zone or zones.
(K) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act, enacted by the 82nd General Assembly, or a River Edge Redevelopment Zone or zones created under the River HB2955 Enrolled - 83 - LRB097 08285 HLH 48412 b Edge Redevelopment Zone Act and conducts substantially all of its operations in an Enterprise Zone or Zones or from a River Edge Redevelopment Zone or zones.
(L) An amount equal to any contribution made to a HB2955 Engrossed - 83 - LRB097 08285 HLH 48412 b job training project established pursuant to the Real Property Tax Increment Allocation Redevelopment Act;
(L) An amount equal to any contribution made to a job training project established pursuant to the Real Property Tax Increment Allocation Redevelopment Act;
(O) For taxable years 2001 and thereafter, for the taxable year in which the bonus depreciation deduction is taken on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code and for each applicable taxable year thereafter, an amount equal to "x", where:
(O) For taxable years 2001 and thereafter, for the taxable year in which the bonus depreciation deduction is taken on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal HB2955 Enrolled - 84 - LRB097 08285 HLH 48412 b Revenue Code and for each applicable taxable year thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation deduction taken for the taxable year on the taxpayer's federal income tax return on property for which the bonus depreciation deduction was HB2955 Engrossed - 84 - LRB097 08285 HLH 48412 b taken in any year under subsection (k) of Section 168 of the Internal Revenue Code, but not including the bonus depreciation deduction;
(1) "y" equals the amount of the depreciation deduction taken for the taxable year on the taxpayer's federal income tax return on property for which the bonus depreciation deduction was taken in any year under subsection (k) of Section 168 of the Internal Revenue Code, but not including the bonus depreciation deduction;
The aggregate amount deducted under this subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code.
The aggregate amount deducted under this subparagraph in all taxable years for any one piece of HB2955 Enrolled - 85 - LRB097 08285 HLH 48412 b property may not exceed the amount of the bonus depreciation deduction taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code.
HB2955 Engrossed - 85 - LRB097 08285 HLH 48412 b (P) If the taxpayer sells, transfers, abandons, or otherwise disposes of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-5), then an amount equal to that addition modification.
(P) If the taxpayer sells, transfers, abandons, or otherwise disposes of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-5), then an amount equal to that addition modification.
(Q) The amount of (i) any interest income (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-17), 203(b)(2)(E-12), 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed the amount of such addition modification and (ii) any income from intangible property (net of the deductions HB2955 Engrossed - 86 - LRB097 08285 HLH 48412 b allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 203(d)(2)(D-8), but not to exceed the amount of such addition modification.
(Q) The amount of (i) any interest income (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with HB2955 Enrolled - 86 - LRB097 08285 HLH 48412 b a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-17), 203(b)(2)(E-12), 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed the amount of such addition modification and (ii) any income from intangible property (net of the deductions allocable thereto) taken into account for the taxable year with respect to a transaction with a taxpayer that is required to make an addition modification with respect to such transaction under Section 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or 203(d)(2)(D-8), but not to exceed the amount of such addition modification.
(R) An amount equal to the interest income taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(d)(2)(D-7) for interest paid, accrued, or incurred, directly or indirectly, to HB2955 Engrossed - 87 - LRB097 08285 HLH 48412 b the same person.
(R) An amount equal to the interest income taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the HB2955 Enrolled - 87 - LRB097 08285 HLH 48412 b unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(d)(2)(D-7) for interest paid, accrued, or incurred, directly or indirectly, to the same person.
and (S) An amount equal to the income from intangible property taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(d)(2)(D-8) for intangible expenses and costs paid, accrued, or incurred, directly or indirectly, to the same person.
and (S) An amount equal to the income from intangible property taken into account for the taxable year (net of the deductions allocable thereto) with respect to transactions with (i) a foreign person who would be a member of the taxpayer's unitary business group but for the fact that the foreign person's business activity outside the United States is 80% or more of that person's total business activity and (ii) for taxable years ending on or after December 31, 2008, to a person who would be a member of the same unitary business group but for the fact that the person is prohibited under Section 1501(a)(27) from being included in the unitary business group because he or she is ordinarily required to apportion business income under different subsections of Section 304, but not to exceed the addition modification required to be made for the same taxable year under Section 203(d)(2)(D-8) for intangible expenses and costs paid, accrued, or HB2955 Enrolled - 88 - LRB097 08285 HLH 48412 b incurred, directly or indirectly, to the same person.
(T) For taxable years ending on or after December 31, 2011, in the case of a taxpayer who was required to add back any insurance premiums under Section 203(d)(2)(D-9), such taxpayer may elect to subtract HB2955 Engrossed - 88 - LRB097 08285 HLH 48412 b that part of a reimbursement received from the insurance company equal to the amount of the expense or loss (including expenses incurred by the insurance company) that would have been taken into account as a deduction for federal income tax purposes if the expense or loss had been uninsured.
(T) For taxable years ending on or after December 31, 2011, in the case of a taxpayer who was required to add back any insurance premiums under Section 203(d)(2)(D-9), such taxpayer may elect to subtract that part of a reimbursement received from the insurance company equal to the amount of the expense or loss (including expenses incurred by the insurance company) that would have been taken into account as a deduction for federal income tax purposes if the expense or loss had been uninsured.
Subject to the provisions of paragraph (2) and subsection (b) (3), for purposes of this Section and Section 803(e), a taxpayer's gross income, adjusted gross income, or taxable income for the taxable year shall mean the amount of gross income, adjusted gross income or taxable income properly reportable for federal income tax purposes for the taxable year under the provisions of the Internal Revenue Code.
Subject to the provisions of paragraph (2) and subsection (b) (3), for purposes of this Section and Section 803(e), a taxpayer's gross income, adjusted gross income, or taxable income for the taxable year shall mean the amount of gross income, adjusted gross income or taxable income properly reportable for federal income tax purposes for the taxable year under the provisions of the HB2955 Enrolled - 89 - LRB097 08285 HLH 48412 b Internal Revenue Code.
However, for taxable years ending on or after December 31, 1986, net operating loss carryforwards from taxable years ending prior to December 31, 1986, may not exceed the sum of federal taxable income for the taxable year before net operating loss deduction, plus the excess HB2955 Engrossed - 89 - LRB097 08285 HLH 48412 b of addition modifications over subtraction modifications for the taxable year.
However, for taxable years ending on or after December 31, 1986, net operating loss carryforwards from taxable years ending prior to December 31, 1986, may not exceed the sum of federal taxable income for the taxable year before net operating loss deduction, plus the excess of addition modifications over subtraction modifications for the taxable year.
For purposes of paragraph (1) of this subsection, the taxable income properly reportable for federal income tax purposes shall mean:
For purposes of paragraph (1) of this HB2955 Enrolled - 90 - LRB097 08285 HLH 48412 b subsection, the taxable income properly reportable for federal income tax purposes shall mean:
In the case of a life insurance company subject to the tax imposed by Section 801 of the Internal Revenue Code, life insurance company taxable income, plus the amount of HB2955 Engrossed - 90 - LRB097 08285 HLH 48412 b distribution from pre-1984 policyholder surplus accounts as calculated under Section 815a of the Internal Revenue Code;
In the case of a life insurance company subject to the tax imposed by Section 801 of the Internal Revenue Code, life insurance company taxable income, plus the amount of distribution from pre-1984 policyholder surplus accounts as calculated under Section 815a of the Internal Revenue Code;
In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated income tax return for the taxable year for federal income tax purposes, taxable income determined as if such corporation had filed a separate return for federal income tax purposes for the taxable year and each preceding taxable year for which it was a member of an affiliated group.
In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated income tax return for the taxable year for federal income tax purposes, taxable income determined as if such corporation had HB2955 Enrolled - 91 - LRB097 08285 HLH 48412 b filed a separate return for federal income tax purposes for the taxable year and each preceding taxable year for which it was a member of an affiliated group.
For purposes of this subparagraph, the taxpayer's separate taxable income shall be determined as if the election provided by Section 243(b) (2) of the Internal Revenue HB2955 Engrossed - 91 - LRB097 08285 HLH 48412 b Code had been in effect for all such years;
For purposes of this subparagraph, the taxpayer's separate taxable income shall be determined as if the election provided by Section 243(b) (2) of the Internal Revenue Code had been in effect for all such years;
In addition, the cooperative may file an amended return or returns, as allowed under this Act, to provide that the election shall be effective for losses incurred or carried forward for taxable years occurring prior to the date of the election.
In addition, the cooperative may file an HB2955 Enrolled - 92 - LRB097 08285 HLH 48412 b amended return or returns, as allowed under this Act, to provide that the election shall be effective for losses incurred or carried forward for taxable years occurring prior to the date of the election.
The Department shall adopt rules setting HB2955 Engrossed - 92 - LRB097 08285 HLH 48412 b forth requirements for documenting the elections and any resulting Illinois net loss and the standards to be used by the Director in evaluating requests to revoke elections.
The Department shall adopt rules setting forth requirements for documenting the elections and any resulting Illinois net loss and the standards to be used by the Director in evaluating requests to revoke elections.
and (ii) a Subchapter S corporation for which there is in effect a federal election to opt out of the provisions of the Subchapter S Revision Act of 1982 and have applied instead the prior federal Subchapter S rules as in effect on July 1, 1982, the taxable income of such corporation determined in accordance with the federal Subchapter S rules as in effect on July 1, 1982;
and (ii) a Subchapter S corporation for which there is in effect a federal election to opt out of the provisions of the Subchapter S Revision Act of 1982 and have applied instead the prior federal Subchapter S rules as in effect on July 1, 1982, the taxable income of such corporation determined in accordance with the federal HB2955 Enrolled - 93 - LRB097 08285 HLH 48412 b Subchapter S rules as in effect on July 1, 1982;
In the case of a partnership, taxable income determined in accordance with Section 703 of the Internal Revenue Code, except that taxable income shall take into account those items which are required by Section 703(a)(1) to be separately stated HB2955 Engrossed - 93 - LRB097 08285 HLH 48412 b but which would be taken into account by an individual in calculating his taxable income.
In the case of a partnership, taxable income determined in accordance with Section 703 of the Internal Revenue Code, except that taxable income shall take into account those items which are required by Section 703(a)(1) to be separately stated but which would be taken into account by an individual in calculating his taxable income.
(f) Valuation limitation amount.
HB2955 Enrolled - 94 - LRB097 08285 HLH 48412 b (f) Valuation limitation amount.
(A) The sum of the pre-August 1, 1969 appreciation amounts (to the extent consisting of gain reportable HB2955 Engrossed - 94 - LRB097 08285 HLH 48412 b under the provisions of Section 1245 or 1250 of the Internal Revenue Code) for all property in respect of which such gain was reported for the taxable year;
(A) The sum of the pre-August 1, 1969 appreciation amounts (to the extent consisting of gain reportable under the provisions of Section 1245 or 1250 of the Internal Revenue Code) for all property in respect of which such gain was reported for the taxable year;
(A) If the fair market value of property referred to in paragraph (1) was readily ascertainable on August 1, 1969, the pre-August 1, 1969 appreciation amount for such property is the lesser of (i) the excess of such fair market value over the taxpayer's basis (for determining gain) for such property on that date (determined under the Internal Revenue Code as in effect on that date), or (ii) the total gain realized and reportable for federal income tax purposes in respect of the sale, exchange or other disposition of such property.
(A) If the fair market value of property referred to in paragraph (1) was readily ascertainable on August 1, 1969, the pre-August 1, 1969 appreciation amount for such property is the lesser of (i) the excess of such fair market value over the taxpayer's basis (for determining gain) for such property on that date (determined under the Internal Revenue Code as in effect on that date), or (ii) the total gain realized HB2955 Enrolled - 95 - LRB097 08285 HLH 48412 b and reportable for federal income tax purposes in respect of the sale, exchange or other disposition of such property.
(B) If the fair market value of property referred to in paragraph (1) was not readily ascertainable on August 1, 1969, the pre-August 1, 1969 appreciation HB2955 Engrossed - 95 - LRB097 08285 HLH 48412 b amount for such property is that amount which bears the same ratio to the total gain reported in respect of the property for federal income tax purposes for the taxable year, as the number of full calendar months in that part of the taxpayer's holding period for the property ending July 31, 1969 bears to the number of full calendar months in the taxpayer's entire holding period for the property.
(B) If the fair market value of property referred to in paragraph (1) was not readily ascertainable on August 1, 1969, the pre-August 1, 1969 appreciation amount for such property is that amount which bears the same ratio to the total gain reported in respect of the property for federal income tax purposes for the taxable year, as the number of full calendar months in that part of the taxpayer's holding period for the property ending July 31, 1969 bears to the number of full calendar months in the taxpayer's entire holding period for the property.
Except as expressly provided by this Section there shall be no modifications or limitations on the amounts of income, gain, loss or deduction taken into account in determining gross income, adjusted gross income or taxable income for federal income tax purposes for the taxable year, or in the amount of such items entering into the computation of base income and net income under this Act for such taxable year, whether in respect of property values as of August 1, 1969 or otherwise.
Except as expressly provided by this Section there shall be no modifications or limitations on the amounts of income, gain, loss or deduction taken into account in determining gross income, adjusted gross income or HB2955 Enrolled - 96 - LRB097 08285 HLH 48412 b taxable income for federal income tax purposes for the taxable year, or in the amount of such items entering into the computation of base income and net income under this Act for such taxable year, whether in respect of property values as of August 1, 1969 or otherwise.
95-286, HB2955 Engrossed - 96 - LRB097 08285 HLH 48412 b eff.
95-286, eff.
For the purpose of subsection (a) of this Section, except as provided by subsection (a) of Section 205 and in this subsection, each taxpayer shall be allowed a basic amount of $1000, except that for corporations the basic amount shall be zero for tax years ending on or after December 31, 2003, and for individuals the basic amount shall be:
For the purpose of subsection (a) of this Section, except as provided by subsection (a) of Section 205 and in this subsection, each taxpayer shall be allowed a basic amount of $1000, except that for corporations the basic amount shall be zero for tax years ending on or after December 31, HB2955 Enrolled - 97 - LRB097 08285 HLH 48412 b 2003, and for individuals the basic amount shall be:
(3) for taxable years ending on or after December 31, HB2955 Engrossed - 97 - LRB097 08285 HLH 48412 b 2000, $2,000.
(3) for taxable years ending on or after December 31, 2000, $2,000.
An additional exemption of $1,000 for the taxpayer if he or she has attained the age of 65 before the end of the taxable year.
An additional exemption of HB2955 Enrolled - 98 - LRB097 08285 HLH 48412 b $1,000 for the taxpayer if he or she has attained the age of 65 before the end of the taxable year.
An additional exemption of $1,000 for the spouse of the taxpayer if a joint return is not made by the taxpayer and his spouse, and if the spouse has attained the age HB2955 Engrossed - 98 - LRB097 08285 HLH 48412 b of 65 before the end of such taxable year, and, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.
An additional exemption of $1,000 for the spouse of the taxpayer if a joint return is not made by the taxpayer and his spouse, and if the spouse has attained the age of 65 before the end of such taxable year, and, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.
except that if the spouse dies during such taxable year such determination shall be made as of the time of such death.
except that if the spouse dies during such taxable year such determination shall be made as of the time of such HB2955 Enrolled - 99 - LRB097 08285 HLH 48412 b death.
For purposes of this subsection, an individual is blind only if his or her central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or if his or her visual acuity is greater than 20/200 but is accompanied HB2955 Engrossed - 99 - LRB097 08285 HLH 48412 b by a limitation in the fields of vision such that the widest diameter of the visual fields subtends an angle no greater than 20 degrees.
For purposes of this subsection, an individual is blind only if his or her central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or if his or her visual acuity is greater than 20/200 but is accompanied by a limitation in the fields of vision such that the widest diameter of the visual fields subtends an angle no greater than 20 degrees.
(b) Partnerships.
HB2955 Enrolled - 100 - LRB097 08285 HLH 48412 b (b) Partnerships.
For taxable years ending on or after December 31, HB2955 Engrossed - 100 - LRB097 08285 HLH 48412 b 2004, an investment partnership, as defined in Section 1501(a)(11.5) of this Act, shall not be subject to the tax imposed by subsections (c) and (d) of Section 201 of this Act.
For taxable years ending on or after December 31, 2004, an investment partnership, as defined in Section 1501(a)(11.5) of this Act, shall not be subject to the tax imposed by subsections (c) and (d) of Section 201 of this Act.
(d) Combat zone, terrorist attack, and certain other deaths death.
(d) Combat zone, terrorist attack, and certain other deaths HB2955 Enrolled - 101 - LRB097 08285 HLH 48412 b death.
A common trust fund described in Section 584 of the Internal Revenue Code, and any other trust HB2955 Engrossed - 101 - LRB097 08285 HLH 48412 b to the extent that the grantor is treated as the owner thereof under sections 671 through 678 of the Internal Revenue Code shall not be subject to the tax imposed by this Act.
A common trust fund described in Section 584 of the Internal Revenue Code, and any other trust to the extent that the grantor is treated as the owner thereof under sections 671 through 678 of the Internal Revenue Code shall not be subject to the tax imposed by this Act.
(Source:
HB2955 Enrolled - 102 - LRB097 08285 HLH 48412 b (Source:
(a) If after applying all of the (i) modifications provided for in paragraph (2) of Section 203(b), paragraph (2) of HB2955 Engrossed - 102 - LRB097 08285 HLH 48412 b Section 203(c) and paragraph (2) of Section 203(d) and (ii) the allocation and apportionment provisions of Article 3 of this Act and subsection (c) of this Section, the taxpayer's net income results in a loss;
(a) If after applying all of the (i) modifications provided for in paragraph (2) of Section 203(b), paragraph (2) of Section 203(c) and paragraph (2) of Section 203(d) and (ii) the allocation and apportionment provisions of Article 3 of this Act and subsection (c) of this Section, the taxpayer's net income results in a loss;
(a-5) Election to relinquish carryback and order of application of losses.
(a-5) Election to relinquish carryback and order of HB2955 Enrolled - 103 - LRB097 08285 HLH 48412 b application of losses.
Such election shall be made in the form and manner prescribed by the Department and shall be made HB2955 Engrossed - 103 - LRB097 08285 HLH 48412 b by the due date (including extensions of time) for filing the taxpayer's return for the taxable year in which such loss is incurred, and such election, once made, shall be irrevocable.
Such election shall be made in the form and manner prescribed by the Department and shall be made by the due date (including extensions of time) for filing the taxpayer's return for the taxable year in which such loss is incurred, and such election, once made, shall be irrevocable.
(c) Notwithstanding any other provision of this Act, for each taxable year ending on or after December 31, 2008, for purposes of computing the loss for the taxable year under subsection (a) of this Section and the deduction taken into account for the taxable year for a net operating loss carryover under paragraphs (1), (2), and (3) of subsection (a) of this Section, the loss and net operating loss carryover shall be reduced in an amount equal to the reduction to the net operating loss and net operating loss carryover to the taxable HB2955 Engrossed - 104 - LRB097 08285 HLH 48412 b year, respectively, required under Section 108(b)(2)(A) of the Internal Revenue Code, multiplied by a fraction, the numerator of which is the amount of discharge of indebtedness income that is excluded from gross income for the taxable year (but only if the taxable year ends on or after December 31, 2008) under Section 108(a) of the Internal Revenue Code and that would have been allocated and apportioned to this State under Article 3 of this Act but for that exclusion, and the denominator of which is the total amount of discharge of indebtedness income excluded from gross income under Section 108(a) of the Internal Revenue Code for the taxable year.
(c) Notwithstanding any other provision of this Act, for each taxable year ending on or after December 31, 2008, for purposes of computing the loss for the taxable year under HB2955 Enrolled - 104 - LRB097 08285 HLH 48412 b subsection (a) of this Section and the deduction taken into account for the taxable year for a net operating loss carryover under paragraphs (1), (2), and (3) of subsection (a) of this Section, the loss and net operating loss carryover shall be reduced in an amount equal to the reduction to the net operating loss and net operating loss carryover to the taxable year, respectively, required under Section 108(b)(2)(A) of the Internal Revenue Code, multiplied by a fraction, the numerator of which is the amount of discharge of indebtedness income that is excluded from gross income for the taxable year (but only if the taxable year ends on or after December 31, 2008) under Section 108(a) of the Internal Revenue Code and that would have been allocated and apportioned to this State under Article 3 of this Act but for that exclusion, and the denominator of which is the total amount of discharge of indebtedness income excluded from gross income under Section 108(a) of the Internal Revenue Code for the taxable year.
provided that, for purposes of determining the taxable years to which a net loss may be carried under subsection (a) of this Section, no taxable year for which a deduction is disallowed under this subsection shall be counted.
provided that, for purposes of determining the taxable years to which a net loss may be carried under subsection (a) of this Section, no taxable HB2955 Enrolled - 105 - LRB097 08285 HLH 48412 b year for which a deduction is disallowed under this subsection shall be counted.
HB2955 Engrossed - 105 - LRB097 08285 HLH 48412 b (1) the amount computed under subsection (a), without regard to this subsection (e), or if that amount is positive, zero;
(1) the amount computed under subsection (a), without regard to this subsection (e), or if that amount is positive, zero;
(a) Beginning with taxable years ending on or after December 31, 2001 and until the taxable year ending on December 31, 2016, a taxpayer who makes a donation under Section 7.28 of the Illinois Housing Development Act is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 50% of the value of the donation.
(a) Beginning with taxable years ending on or after December 31, 2001 and until the taxable year ending on December 31, 2016, a taxpayer who makes a donation under Section 7.28 of the Illinois Housing Development Act is entitled to a credit against the tax imposed by subsections (a) and (b) of Section HB2955 Enrolled - 106 - LRB097 08285 HLH 48412 b 201 in an amount equal to 50% of the value of the donation.
Partners, shareholders of subchapter S corporations, and owners of limited liability companies (if the limited liability company is treated as a partnership for purposes of federal and State income taxation) are entitled to a credit under this Section to be determined in accordance with the determination HB2955 Engrossed - 106 - LRB097 08285 HLH 48412 b of income and distributive share of income under Sections 702 and 703 and subchapter S of the Internal Revenue Code.
Partners, shareholders of subchapter S corporations, and owners of limited liability companies (if the limited liability company is treated as a partnership for purposes of federal and State income taxation) are entitled to a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 703 and subchapter S of the Internal Revenue Code.
(d) A taxpayer claiming the credit provided by this Section must maintain and record any information that the Department may require by regulation regarding the project for which the credit is claimed.
HB2955 Enrolled - 107 - LRB097 08285 HLH 48412 b (d) A taxpayer claiming the credit provided by this Section must maintain and record any information that the Department may require by regulation regarding the project for which the credit is claimed.
When claiming the credit provided by this Section, the taxpayer must provide information regarding the taxpayer's donation to the project under the Illinois Housing HB2955 Engrossed - 107 - LRB097 08285 HLH 48412 b Development Act.
When claiming the credit provided by this Section, the taxpayer must provide information regarding the taxpayer's donation to the project under the Illinois Housing Development Act.
"Related member" means a person that, with respect to the investment, is any one of the following:
"Related member" means a person that, with respect to the HB2955 Enrolled - 108 - LRB097 08285 HLH 48412 b investment, is any one of the following:
(1) An individual, if the individual and the members of the individual's family (as defined in Section 318 of the Internal Revenue Code) own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the value of the outstanding profits, capital, HB2955 Engrossed - 108 - LRB097 08285 HLH 48412 b stock, or other ownership interest in the applicant.
(1) An individual, if the individual and the members of the individual's family (as defined in Section 318 of the Internal Revenue Code) own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50% of the value of the outstanding profits, capital, stock, or other ownership interest in the applicant.
(4) A corporation and any party related to that corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the corporation and all such related parties own, in the aggregate, at least 50% of the profits, capital, stock, or other ownership interest in the applicant.
(4) A corporation and any party related to that corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code, if the HB2955 Enrolled - 109 - LRB097 08285 HLH 48412 b corporation and all such related parties own, in the aggregate, at least 50% of the profits, capital, stock, or other ownership interest in the applicant.
(5) A person to or from whom there is attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code, except that for purposes of HB2955 Engrossed - 109 - LRB097 08285 HLH 48412 b determining whether a person is a related member under this paragraph, "20%" shall be substituted for "5%" whenever "5%" appears in Section 1563(e) of the Internal Revenue Code.
(5) A person to or from whom there is attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code, except that for purposes of determining whether a person is a related member under this paragraph, "20%" shall be substituted for "5%" whenever "5%" appears in Section 1563(e) of the Internal Revenue Code.
In the case of a partnership or Subchapter S Corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
In the case of a partnership or Subchapter S Corporation, the credit is allowed HB2955 Enrolled - 110 - LRB097 08285 HLH 48412 b to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.
(c) The maximum amount of an applicant's investment that may be used as the basis for a credit under this Section is HB2955 Engrossed - 110 - LRB097 08285 HLH 48412 b $2,000,000 for each investment made directly in a qualified new business venture.
(c) The maximum amount of an applicant's investment that may be used as the basis for a credit under this Section is $2,000,000 for each investment made directly in a qualified new business venture.
A business desiring registration shall submit an application to the Department in each taxable year for which the business desires registration.
A business desiring registration shall submit an application to the Department in each taxable year for which the business HB2955 Enrolled - 111 - LRB097 08285 HLH 48412 b desires registration.
(3) it has the potential for increasing jobs in this HB2955 Engrossed - 111 - LRB097 08285 HLH 48412 b State, increasing capital investment in this State, or both, and either of the following apply:
(3) it has the potential for increasing jobs in this State, increasing capital investment in this State, or both, and either of the following apply:
(4) it is not principally engaged in real estate development, insurance, banking, lending, lobbying, political consulting, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction, except construction of power production plants that derive HB2955 Engrossed - 112 - LRB097 08285 HLH 48412 b energy from a renewable energy resource, as defined in Section 1 of the Illinois Power Agency Act;
(4) it is not principally engaged in real estate HB2955 Enrolled - 112 - LRB097 08285 HLH 48412 b development, insurance, banking, lending, lobbying, political consulting, professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants, wholesale or retail trade, leisure, hospitality, transportation, or construction, except construction of power production plants that derive energy from a renewable energy resource, as defined in Section 1 of the Illinois Power Agency Act;
(h) On or before March 1 of each year, the Department shall report to the Governor and to the General Assembly on the tax credit certificates awarded under this Section for the prior calendar year.
(h) On or before March 1 of each year, the Department shall report to the Governor and to the General Assembly on the tax credit certificates awarded under this Section for the prior HB2955 Enrolled - 113 - LRB097 08285 HLH 48412 b calendar year.
(B) the name and address of the qualified new HB2955 Engrossed - 113 - LRB097 08285 HLH 48412 b business venture that received the investment giving rise to the credit and the county in which the qualified new business venture is located;
(B) the name and address of the qualified new business venture that received the investment giving rise to the credit and the county in which the qualified new business venture is located;
The business income of a person other than a resident shall be allocated to this State if such person's business income is derived solely from this State.
The business income of a person other than a resident shall be allocated to this State if such person's HB2955 Enrolled - 114 - LRB097 08285 HLH 48412 b business income is derived solely from this State.
If a person other than a resident derives business income from this State and one or more other states, then, for tax years ending on or before December 30, 1998, and except as otherwise provided by this Section, such person's business income shall be apportioned to this State by multiplying the income by a HB2955 Engrossed - 114 - LRB097 08285 HLH 48412 b fraction, the numerator of which is the sum of the property factor (if any), the payroll factor (if any) and 200% of the sales factor (if any), and the denominator of which is 4 reduced by the number of factors other than the sales factor which have a denominator of zero and by an additional 2 if the sales factor has a denominator of zero.
If a person other than a resident derives business income from this State and one or more other states, then, for tax years ending on or before December 30, 1998, and except as otherwise provided by this Section, such person's business income shall be apportioned to this State by multiplying the income by a fraction, the numerator of which is the sum of the property factor (if any), the payroll factor (if any) and 200% of the sales factor (if any), and the denominator of which is 4 reduced by the number of factors other than the sales factor which have a denominator of zero and by an additional 2 if the sales factor has a denominator of zero.
(A) The property factor is a fraction, the numerator of which is the average value of the person's real and tangible personal property owned or rented and used in the trade or business in this State during the taxable year and the denominator of which is the average value of all the person's real and tangible personal property owned or rented and used in the trade or business during the taxable year.
(A) The property factor is a fraction, the numerator of which is the average value of the person's real and tangible personal property owned or rented and used in the trade or business in this State during the taxable year and the denominator of which is the average value of all the person's real and tangible personal property owned or rented and used in the trade or business during the taxable HB2955 Enrolled - 115 - LRB097 08285 HLH 48412 b year.
HB2955 Engrossed - 115 - LRB097 08285 HLH 48412 b (C) The average value of property shall be determined by averaging the values at the beginning and ending of the taxable year but the Director may require the averaging of monthly values during the taxable year if reasonably required to reflect properly the average value of the person's property.
(C) The average value of property shall be determined by averaging the values at the beginning and ending of the taxable year but the Director may require the averaging of monthly values during the taxable year if reasonably required to reflect properly the average value of the person's property.
or (iii) Some of the service is performed within this State and either the base of operations, or if there is no base of operations, the place from which the service is directed or controlled is within this State, or the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the HB2955 Engrossed - 116 - LRB097 08285 HLH 48412 b individual's residence is in this State.
or (iii) Some of the service is performed within this HB2955 Enrolled - 116 - LRB097 08285 HLH 48412 b State and either the base of operations, or if there is no base of operations, the place from which the service is directed or controlled is within this State, or the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this State.
For purposes of this subpart (iv):
For purposes of this subpart HB2955 Enrolled - 117 - LRB097 08285 HLH 48412 b (iv):
(2) The term "member of a professional HB2955 Engrossed - 117 - LRB097 08285 HLH 48412 b athletic team" includes those employees who are active players, players on the disabled list, and any other persons required to travel and who travel with and perform services on behalf of a professional athletic team on a regular basis.
(2) The term "member of a professional athletic team" includes those employees who are active players, players on the disabled list, and any other persons required to travel and who travel with and perform services on behalf of a professional athletic team on a regular basis.
(A) Duty days shall also include days on which a member of a professional athletic team performs service for a team on a date that does not fall within the foregoing period (e.g., participation in instructional leagues, the "All Star Game", or promotional "caravans").
(A) Duty days shall also include days on HB2955 Enrolled - 118 - LRB097 08285 HLH 48412 b which a member of a professional athletic team performs service for a team on a date that does not fall within the foregoing period (e.g., participation in instructional leagues, the "All Star Game", or promotional "caravans").
Performing a service for a professional HB2955 Engrossed - 118 - LRB097 08285 HLH 48412 b athletic team includes conducting training and rehabilitation activities, when such activities are conducted at team facilities.
Performing a service for a professional athletic team includes conducting training and rehabilitation activities, when such activities are conducted at team facilities.
Where a person switches teams during a taxable year, a separate duty-day calculation shall be made for the period the person was with each team.
Where a person switches teams during a taxable year, a separate duty-day HB2955 Enrolled - 119 - LRB097 08285 HLH 48412 b calculation shall be made for the period the person was with each team.
(D) Days for which a member of a professional athletic team is not compensated and is not performing services for the team in any manner, including days when such member of HB2955 Engrossed - 119 - LRB097 08285 HLH 48412 b a professional athletic team has been suspended without pay and prohibited from performing any services for the team, shall not be treated as duty days.
(D) Days for which a member of a professional athletic team is not compensated and is not performing services for the team in any manner, including days when such member of a professional athletic team has been suspended without pay and prohibited from performing any services for the team, shall not be treated as duty days.
(A) from the beginning of the official pre-season training period through the last game in which the team competes or is scheduled to compete during that taxable year;
(A) from the beginning of the official pre-season training period through the last HB2955 Enrolled - 120 - LRB097 08285 HLH 48412 b game in which the team competes or is scheduled to compete during that taxable year;
HB2955 Engrossed - 120 - LRB097 08285 HLH 48412 b This compensation shall include, but is not limited to, salaries, wages, bonuses as described in this subpart, and any other type of compensation paid during the taxable year to a member of a professional athletic team for services performed in that year.
This compensation shall include, but is not limited to, salaries, wages, bonuses as described in this subpart, and any other type of compensation paid during the taxable year to a member of a professional athletic team for services performed in that year.
bonuses earned as a result of play (i.e., performance bonuses) during the season, including bonuses paid for championship, playoff or "bowl" games played by a team, or for selection to all-star league or other honorary positions;
bonuses earned as a result of play (i.e., performance bonuses) during the season, including bonuses paid for championship, playoff or "bowl" games played by a team, or for selection to all-star league or other honorary HB2955 Enrolled - 121 - LRB097 08285 HLH 48412 b positions;
and bonuses paid for signing a contract, unless the payment of the signing bonus is not conditional upon the signee playing any games for the team or performing any subsequent services for the team or even making the team, the signing bonus is payable separately from the HB2955 Engrossed - 121 - LRB097 08285 HLH 48412 b salary and any other compensation, and the signing bonus is nonrefundable.
and bonuses paid for signing a contract, unless the payment of the signing bonus is not conditional upon the signee playing any games for the team or performing any subsequent services for the team or even making the team, the signing bonus is payable separately from the salary and any other compensation, and the signing bonus is nonrefundable.
provided, however, that premises owned or leased by a person who has independently contracted with the seller for the printing of newspapers, periodicals or books shall not be deemed to be an office, store, warehouse, factory or other place of storage for purposes of this Section.
provided, however, that premises owned or leased by a person who has independently contracted with the seller for the printing of newspapers, HB2955 Enrolled - 122 - LRB097 08285 HLH 48412 b periodicals or books shall not be deemed to be an office, store, warehouse, factory or other place of storage for purposes of this Section.
Sales of tangible personal property are not in this State if the seller and purchaser would be members of the same unitary business group but for the fact that either the seller HB2955 Engrossed - 122 - LRB097 08285 HLH 48412 b or purchaser is a person with 80% or more of total business activity outside of the United States and the property is purchased for resale.
Sales of tangible personal property are not in this State if the seller and purchaser would be members of the same unitary business group but for the fact that either the seller or purchaser is a person with 80% or more of total business activity outside of the United States and the property is purchased for resale.
If a patent is utilized in more than one state, the extent to which it is utilized in any one state shall be a fraction equal to the gross receipts of the licensee or purchaser from sales or leases of items produced, fabricated, manufactured, or processed within that state using the patent and of patented items produced within that state, divided by the total of such gross receipts for all states in which the HB2955 Engrossed - 123 - LRB097 08285 HLH 48412 b patent is utilized.
If a patent is utilized in more than one state, the extent to which it is utilized in any one state shall be a fraction equal HB2955 Enrolled - 123 - LRB097 08285 HLH 48412 b to the gross receipts of the licensee or purchaser from sales or leases of items produced, fabricated, manufactured, or processed within that state using the patent and of patented items produced within that state, divided by the total of such gross receipts for all states in which the patent is utilized.
267, the gross receipts attributable to that item shall be excluded from both the numerator and the denominator of the sales factor.
267, the gross HB2955 Enrolled - 124 - LRB097 08285 HLH 48412 b receipts attributable to that item shall be excluded from both the numerator and the denominator of the sales factor.
(B-2) Gross receipts from the license, sale, or other disposition of patents, copyrights, trademarks, and similar items of intangible personal property, other than HB2955 Engrossed - 124 - LRB097 08285 HLH 48412 b gross receipts governed by paragraph (B-7) of this item (3), may be included in the numerator or denominator of the sales factor only if gross receipts from licenses, sales, or other disposition of such items comprise more than 50% of the taxpayer's total gross receipts included in gross income during the tax year and during each of the 2 immediately preceding tax years;
(B-2) Gross receipts from the license, sale, or other disposition of patents, copyrights, trademarks, and similar items of intangible personal property, other than gross receipts governed by paragraph (B-7) of this item (3), may be included in the numerator or denominator of the sales factor only if gross receipts from licenses, sales, or other disposition of such items comprise more than 50% of the taxpayer's total gross receipts included in gross income during the tax year and during each of the 2 immediately preceding tax years;
"Ancillary services" means services that are associated with or incidental to the provision of "telecommunications services", including but not limited to "detailed telecommunications billing", "directory assistance", "vertical service", and "voice mail services".
"Ancillary services" means services that are associated with or incidental to the provision of "telecommunications services", including but not HB2955 Enrolled - 125 - LRB097 08285 HLH 48412 b limited to "detailed telecommunications billing", "directory assistance", "vertical service", and "voice mail services".
"Air-to-Ground Radiotelephone service" means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and HB2955 Engrossed - 125 - LRB097 08285 HLH 48412 b provide radio telecommunications service for hire to subscribers in aircraft.
"Air-to-Ground Radiotelephone service" means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft.
"Detailed telecommunications billing service" means an "ancillary service" of separately stating information pertaining to individual calls on a customer's billing statement.
"Detailed telecommunications billing service" means an "ancillary service" of separately stating HB2955 Enrolled - 126 - LRB097 08285 HLH 48412 b information pertaining to individual calls on a customer's billing statement.
"Home service provider" means the facilities based HB2955 Engrossed - 126 - LRB097 08285 HLH 48412 b carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.
"Home service provider" means the facilities based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.
"Post-paid telecommunication service" means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number which is not associated with the origination or termination of the telecommunications service.
"Post-paid telecommunication service" means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by HB2955 Enrolled - 127 - LRB097 08285 HLH 48412 b charge made to a telephone number which is not associated with the origination or termination of the telecommunications service.
A post-paid calling service includes telecommunications service, except a prepaid wireless calling service, that would be a prepaid calling service except it is not exclusively a HB2955 Engrossed - 127 - LRB097 08285 HLH 48412 b telecommunication service.
A post-paid calling service includes telecommunications service, except a prepaid wireless calling service, that would be a prepaid calling service except it is not exclusively a telecommunication service.
"Private communication service" means a telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels.
"Private communication service" means a telecommunication service that entitles the customer to exclusive or priority use of a communications HB2955 Enrolled - 128 - LRB097 08285 HLH 48412 b channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels.
HB2955 Engrossed - 128 - LRB097 08285 HLH 48412 b "Service address" means:
"Service address" means:
The term "telecommunications service" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such service is referred to as voice over HB2955 Engrossed - 129 - LRB097 08285 HLH 48412 b Internet protocol services or is classified by the Federal Communications Commission as enhanced or value added.
The term HB2955 Enrolled - 129 - LRB097 08285 HLH 48412 b "telecommunications service" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such service is referred to as voice over Internet protocol services or is classified by the Federal Communications Commission as enhanced or value added.
(g) Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, conveyance and routing of such services by the programming service provider.
(g) Radio and television audio and video programming services, regardless of the medium, including the furnishing of transmission, HB2955 Enrolled - 130 - LRB097 08285 HLH 48412 b conveyance and routing of such services by the programming service provider.
Radio and television audio and video programming services shall include but not be limited to cable service as defined in 47 USC 522(6) and audio and video programming services delivered by commercial mobile radio HB2955 Engrossed - 130 - LRB097 08285 HLH 48412 b service providers, as defined in 47 CFR 20.3;
Radio and television audio and video programming services shall include but not be limited to cable service as defined in 47 USC 522(6) and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3;
(ii) Receipts from the sale of telecommunications service sold on an individual call-by-call basis are in this State if either of the following applies:
(ii) Receipts from the sale of telecommunications service sold on an individual call-by-call basis are in HB2955 Enrolled - 131 - LRB097 08285 HLH 48412 b this State if either of the following applies:
HB2955 Engrossed - 131 - LRB097 08285 HLH 48412 b (iii) Receipts from the sale of postpaid telecommunications service at retail are in this State if the origination point of the telecommunication signal, as first identified by the service provider's telecommunication system or as identified by information received by the seller from its service provider if the system used to transport telecommunication signals is not the seller's, is located in this State.
(iii) Receipts from the sale of postpaid telecommunications service at retail are in this State if the origination point of the telecommunication signal, as first identified by the service provider's telecommunication system or as identified by information received by the seller from its service provider if the system used to transport telecommunication signals is not the seller's, is located in this State.
(a) 100% of receipts from charges imposed at each channel termination point in this State.
HB2955 Enrolled - 132 - LRB097 08285 HLH 48412 b (a) 100% of receipts from charges imposed at each channel termination point in this State.
(c) 50% of the total receipts from charges for HB2955 Engrossed - 132 - LRB097 08285 HLH 48412 b service segments when those segments are between 2 customer channel termination points, 1 of which is located in this State and the other is located outside of this State, which segments are separately charged.
(c) 50% of the total receipts from charges for service segments when those segments are between 2 customer channel termination points, 1 of which is located in this State and the other is located outside of this State, which segments are separately charged.
If the seller of those ancillary services cannot determine where the associated telecommunications are located, then the ancillary services shall be based on the location of the purchaser.
If the seller of those ancillary services cannot determine where the associated telecommunications are located, HB2955 Enrolled - 133 - LRB097 08285 HLH 48412 b then the ancillary services shall be based on the location of the purchaser.
HB2955 Engrossed - 133 - LRB097 08285 HLH 48412 b (a) 100% of the receipts from access fees attributable to intrastate telecommunications service that both originates and terminates in this State.
(a) 100% of the receipts from access fees attributable to intrastate telecommunications service that both originates and terminates in this State.
(d) Gross receipts from sales of telecommunication services or from ancillary services for telecommunications services sold to other telecommunication service providers for resale shall be sourced to this State using the apportionment concepts used for non-resale receipts of telecommunications services if the information is readily available to make that determination.
(d) Gross receipts from sales of telecommunication services or from ancillary services for telecommunications services sold to other telecommunication service providers for resale shall be sourced to this State using the HB2955 Enrolled - 134 - LRB097 08285 HLH 48412 b apportionment concepts used for non-resale receipts of telecommunications services if the information is readily available to make that determination.
HB2955 Engrossed - 134 - LRB097 08285 HLH 48412 b (B-7) For taxable years ending on or after December 31, 2008, receipts from the sale of broadcasting services are in this State if the broadcasting services are received in this State.
(B-7) For taxable years ending on or after December 31, 2008, receipts from the sale of broadcasting services are in this State if the broadcasting services are received in this State.
The audience factor for film or radio programming shall be determined by reference to the books and records of the taxpayer or by reference to published rating statistics provided the method used by the taxpayer is consistently used from year to year for this purpose and fairly represents the taxpayer's activity in this State.
The audience factor for film or radio programming shall be determined by reference to the books and records of the taxpayer or by reference to published rating statistics provided the HB2955 Enrolled - 135 - LRB097 08285 HLH 48412 b method used by the taxpayer is consistently used from year to year for this purpose and fairly represents the taxpayer's activity in this State.
"Broadcast" or "broadcasting" or "broadcasting services" means the transmission or provision of film or radio programming, whether through the public HB2955 Engrossed - 135 - LRB097 08285 HLH 48412 b airwaves, by cable, by direct or indirect satellite transmission, or by any other means of communication, either through a station, a network, or a cable system.
"Broadcast" or "broadcasting" or "broadcasting services" means the transmission or provision of film or radio programming, whether through the public airwaves, by cable, by direct or indirect satellite transmission, or by any other means of communication, either through a station, a network, or a cable system.
"Radio" or "radio programming" means the broadcast on radio of any and all performances, events, or productions, including but not limited to news, sporting events, plays, stories, or other literary, commercial, educational, or artistic works, either live or through the use of an audio tape, disc, or any other format or medium.
"Radio" or "radio programming" means the broadcast on radio of any and all performances, events, or productions, including but not limited to news, sporting events, plays, stories, or other literary, commercial, educational, or artistic works, either live or through the use of an audio tape, disc, or any HB2955 Enrolled - 136 - LRB097 08285 HLH 48412 b other format or medium.
HB2955 Engrossed - 136 - LRB097 08285 HLH 48412 b (i) In the case of advertising revenue from broadcasting, the customer is the advertiser and the service is received in this State if the commercial domicile of the advertiser is in this State.
(i) In the case of advertising revenue from broadcasting, the customer is the advertiser and the service is received in this State if the commercial domicile of the advertiser is in this State.
For purposes of this paragraph, a taxpayer may determine the location of the recipients of its broadcast using the address of the recipient shown in its contracts with the recipient or using the billing address of the recipient in the taxpayer's records.
For purposes of this paragraph, a taxpayer may determine the location of the recipients of its broadcast using the address of the recipient shown in its contracts HB2955 Enrolled - 137 - LRB097 08285 HLH 48412 b with the recipient or using the billing address of the recipient in the taxpayer's records.
(iii) In the case where film or radio programming is broadcast by a station, a network, or a cable system for a fee or other remuneration from the person providing the programming, the HB2955 Engrossed - 137 - LRB097 08285 HLH 48412 b portion of the broadcast service that is received by such station, network, or cable system in this State is measured by the portion of recipients of the broadcast located in this State.
(iii) In the case where film or radio programming is broadcast by a station, a network, or a cable system for a fee or other remuneration from the person providing the programming, the portion of the broadcast service that is received by such station, network, or cable system in this State is measured by the portion of recipients of the broadcast located in this State.
Accordingly, in such a case the revenue derived by HB2955 Enrolled - 138 - LRB097 08285 HLH 48412 b the taxpayer that is included in the taxpayer's Illinois numerator of the sales factor is the revenue from such customers who receive the broadcasting service in Illinois.
(v) In the case where film or radio programming is provided by a taxpayer that is not a network or station to another person for broadcasting in exchange for a fee or other remuneration from that person, the broadcasting service is received at the location of the office of the customer from which the services were ordered in the regular course of the customer's trade or business.
(v) In the case where film or radio programming is provided by a taxpayer that is not a network or HB2955 Engrossed - 138 - LRB097 08285 HLH 48412 b station to another person for broadcasting in exchange for a fee or other remuneration from that person, the broadcasting service is received at the location of the office of the customer from which the services were ordered in the regular course of the customer's trade or business.
Accordingly, in such a case the revenue derived by the taxpayer that is included in the taxpayer's Illinois numerator of the sales factor is the revenue from such customers who receive the broadcasting service in Illinois.
or (ii) The income-producing activity is performed both within and without this State and a greater proportion of the income-producing activity is performed within this State than without this State, based on performance costs.
or (ii) The income-producing activity is performed both within and without this State and a greater proportion of the income-producing activity is performed within this State than without this State, HB2955 Enrolled - 139 - LRB097 08285 HLH 48412 b based on performance costs.
(i) Sales from the sale or lease of real property HB2955 Engrossed - 139 - LRB097 08285 HLH 48412 b are in this State if the property is located in this State.
(i) Sales from the sale or lease of real property are in this State if the property is located in this State.
For purposes of this subparagraph, a customer is in this State if the customer is an individual, trust or estate who is a resident of this State and, for all other customers, if the customer's commercial domicile is in this State.
For purposes of this HB2955 Enrolled - 140 - LRB097 08285 HLH 48412 b subparagraph, a customer is in this State if the customer is an individual, trust or estate who is a resident of this State and, for all other customers, if the customer's commercial domicile is in this State.
Unless the dealer has actual knowledge of the residence or commercial domicile HB2955 Engrossed - 140 - LRB097 08285 HLH 48412 b of a customer during a taxable year, the customer shall be deemed to be a customer in this State if the billing address of the customer, as shown in the records of the dealer, is in this State;
Unless the dealer has actual knowledge of the residence or commercial domicile of a customer during a taxable year, the customer shall be deemed to be a customer in this State if the billing address of the customer, as shown in the records of the dealer, is in this State;
If the state where the services are received is not readily determinable or is a state where the corporation, partnership, or trust receiving the service does not have a fixed place of business, the services shall be deemed to be received at the location of the office of the customer from which the services were ordered in the regular course of the customer's HB2955 Engrossed - 141 - LRB097 08285 HLH 48412 b trade or business.
If the state where the services are received HB2955 Enrolled - 141 - LRB097 08285 HLH 48412 b is not readily determinable or is a state where the corporation, partnership, or trust receiving the service does not have a fixed place of business, the services shall be deemed to be received at the location of the office of the customer from which the services were ordered in the regular course of the customer's trade or business.
(E) Paragraphs (B-1) and (B-2) shall apply to tax years ending on or after December 31, 1999, provided that a taxpayer may elect to apply the provisions of these paragraphs to prior tax years.
(E) Paragraphs (B-1) and (B-2) shall apply to tax years HB2955 Enrolled - 142 - LRB097 08285 HLH 48412 b ending on or after December 31, 1999, provided that a taxpayer may elect to apply the provisions of these paragraphs to prior tax years.
provided that, if a taxpayer's Illinois income tax liability for any HB2955 Engrossed - 142 - LRB097 08285 HLH 48412 b tax year, as assessed under Section 903 prior to January 1, 1999, was computed in a manner contrary to the provisions of paragraphs (B-1) or (B-2), no refund shall be payable to the taxpayer for that tax year to the extent such refund is the result of applying the provisions of paragraph (B-1) or (B-2) retroactively.
provided that, if a taxpayer's Illinois income tax liability for any tax year, as assessed under Section 903 prior to January 1, 1999, was computed in a manner contrary to the provisions of paragraphs (B-1) or (B-2), no refund shall be payable to the taxpayer for that tax year to the extent such refund is the result of applying the provisions of paragraph (B-1) or (B-2) retroactively.
For purposes of this subsection, the term "direct premiums written" means the total amount of direct premiums written, assessments and annuity considerations as reported for the taxable year on the annual statement filed by the company with the Illinois Director of Insurance in the form approved by the National Convention of Insurance Commissioners or such other form as may be prescribed in lieu thereof.
For purposes of this subsection, the term "direct premiums written" means the HB2955 Enrolled - 143 - LRB097 08285 HLH 48412 b total amount of direct premiums written, assessments and annuity considerations as reported for the taxable year on the annual statement filed by the company with the Illinois Director of Insurance in the form approved by the National Convention of Insurance Commissioners or such other form as may be prescribed in lieu thereof.
HB2955 Engrossed - 143 - LRB097 08285 HLH 48412 b (2) Reinsurance.
(2) Reinsurance.
For taxable years ending before December 31, 2008, for purposes of this paragraph, premiums written for reinsurance accepted in respect of property or risk in this State, whether or not otherwise determinable, may, at the election of the company, be determined on the basis of the proportion which premiums written for reinsurance accepted from companies commercially domiciled in Illinois bears to premiums written for reinsurance accepted from all sources, or, alternatively, in the proportion which the sum of the direct premiums written for insurance upon property or risk in this State by each ceding company from which reinsurance is accepted bears to the sum of the total direct premiums written by each such ceding company for the taxable year.
For taxable years ending before December 31, 2008, for purposes of this paragraph, premiums written for reinsurance accepted in respect of property or risk in this State, whether or not otherwise determinable, may, at the election of the company, be determined on the basis of the proportion which premiums written for reinsurance accepted from companies commercially domiciled in Illinois bears to premiums written for reinsurance accepted from all HB2955 Enrolled - 144 - LRB097 08285 HLH 48412 b sources, or, alternatively, in the proportion which the sum of the direct premiums written for insurance upon property or risk in this State by each ceding company from which reinsurance is accepted bears to the sum of the total direct premiums written by each such ceding company for the taxable year.
The election made by a company under this HB2955 Engrossed - 144 - LRB097 08285 HLH 48412 b paragraph for its first taxable year ending on or after December 31, 2011, shall be binding for that company for that taxable year and for all subsequent taxable years, and may be altered only with the written permission of the Department, which shall not be unreasonably withheld.
The election made by a company under this paragraph for its first taxable year ending on or after December 31, 2011, shall be binding for that company for that taxable year and for all subsequent taxable years, and may be altered only with the written permission of the Department, which shall not be unreasonably withheld.
(B) Gross profits from trading in stocks, bonds or other securities managed within this State;
HB2955 Enrolled - 145 - LRB097 08285 HLH 48412 b (B) Gross profits from trading in stocks, bonds or other securities managed within this State;
(D) Interest charged to customers at places of business maintained within this State for carrying HB2955 Engrossed - 145 - LRB097 08285 HLH 48412 b debit balances of margin accounts, without deduction of any costs incurred in carrying such accounts;
(D) Interest charged to customers at places of business maintained within this State for carrying debit balances of margin accounts, without deduction of any costs incurred in carrying such accounts;
The floor amount shall be the amount, if any, determined by multiplying the income of the international banking facility by a fraction, not greater than one, which is determined as follows:
The floor amount shall be the HB2955 Enrolled - 146 - LRB097 08285 HLH 48412 b amount, if any, determined by multiplying the income of the international banking facility by a fraction, not greater than one, which is determined as follows:
The average aggregate, determined on a quarterly basis, of the financial organization's HB2955 Engrossed - 146 - LRB097 08285 HLH 48412 b loans to banks in foreign countries, to foreign domiciled borrowers (except where secured primarily by real estate) and to foreign governments and other foreign official institutions, as reported for its branches, agencies and offices within the state on its "Consolidated Report of Condition", Schedule A, Lines 2.c., 5.b., and 7.a., which was filed with the Federal Deposit Insurance Corporation and other regulatory authorities, for the year 1980, minus The average aggregate, determined on a quarterly basis, of such loans (other than loans of an international banking facility), as reported by the financial institution for its branches, agencies and offices within the state, on the corresponding Schedule and lines of the Consolidated Report of Condition for the current taxable year, provided, however, that in no case shall the amount determined in this clause (the subtrahend) exceed the amount determined in the preceding clause (the minuend);
The average aggregate, determined on a quarterly basis, of the financial organization's loans to banks in foreign countries, to foreign domiciled borrowers (except where secured primarily by real estate) and to foreign governments and other foreign official institutions, as reported for its branches, agencies and offices within the state on its "Consolidated Report of Condition", Schedule A, Lines 2.c., 5.b., and 7.a., which was filed with the Federal Deposit Insurance Corporation and other regulatory authorities, for the year 1980, minus The average aggregate, determined on a quarterly basis, of such loans (other than loans of an international banking facility), as reported by the financial institution for its branches, agencies and offices within the state, on the corresponding Schedule and lines of the Consolidated Report of Condition for the current taxable year, provided, however, that in no case shall the amount determined in this clause (the HB2955 Enrolled - 147 - LRB097 08285 HLH 48412 b subtrahend) exceed the amount determined in the preceding clause (the minuend);
and (ii) the denominator shall be the average aggregate, determined on a quarterly basis, of the international banking facility's loans to banks in foreign countries, to foreign domiciled borrowers HB2955 Engrossed - 147 - LRB097 08285 HLH 48412 b (except where secured primarily by real estate) and to foreign governments and other foreign official institutions, which were recorded in its financial accounts for the current taxable year.
and (ii) the denominator shall be the average aggregate, determined on a quarterly basis, of the international banking facility's loans to banks in foreign countries, to foreign domiciled borrowers (except where secured primarily by real estate) and to foreign governments and other foreign official institutions, which were recorded in its financial accounts for the current taxable year.
The financial institution shall also notify the Department should its international banking facility fail to qualify as such, in whole or in part, or should there be any amendment or change to the Consolidated Report of Condition, as originally filed, to the extent such amendment or change alters the information used in determining the floor amount.
The financial institution shall also notify the Department should its international banking facility fail to qualify as such, in whole or in part, or should there be any amendment or change to the Consolidated Report of Condition, as originally filed, to the extent such amendment or change alters the information used in HB2955 Enrolled - 148 - LRB097 08285 HLH 48412 b determining the floor amount.
(3) For taxable years ending on or after December 31, 2008, the business income of a financial organization shall be apportioned to this State by multiplying such income by a fraction, the numerator of which is its gross receipts from sources in this State or otherwise attributable to HB2955 Engrossed - 148 - LRB097 08285 HLH 48412 b this State's marketplace and the denominator of which is its gross receipts everywhere during the taxable year.
(3) For taxable years ending on or after December 31, 2008, the business income of a financial organization shall be apportioned to this State by multiplying such income by a fraction, the numerator of which is its gross receipts from sources in this State or otherwise attributable to this State's marketplace and the denominator of which is its gross receipts everywhere during the taxable year.
(ii) Interest income, commissions, fees, gains on disposition, and other receipts from assets in the nature of loans that are secured primarily by real estate or tangible personal property are from sources in this State if the security is located in this State.
(ii) Interest income, commissions, fees, gains on disposition, and other receipts from assets in the HB2955 Enrolled - 149 - LRB097 08285 HLH 48412 b nature of loans that are secured primarily by real estate or tangible personal property are from sources in this State if the security is located in this State.
(iii) Interest income, commissions, fees, gains on disposition, and other receipts from consumer loans that are not secured by real or tangible personal HB2955 Engrossed - 149 - LRB097 08285 HLH 48412 b property are from sources in this State if the debtor is a resident of this State.
(iii) Interest income, commissions, fees, gains on disposition, and other receipts from consumer loans that are not secured by real or tangible personal property are from sources in this State if the debtor is a resident of this State.
(vi) Receipts from the performance of services, including, but not limited to, fiduciary, advisory, and brokerage services, are in this State if the services are received in this State within the meaning of subparagraph (a)(3)(C-5)(iv) of this Section.
HB2955 Enrolled - 150 - LRB097 08285 HLH 48412 b (vi) Receipts from the performance of services, including, but not limited to, fiduciary, advisory, and brokerage services, are in this State if the services are received in this State within the meaning of subparagraph (a)(3)(C-5)(iv) of this Section.
(vii) Receipts from the issuance of travelers HB2955 Engrossed - 150 - LRB097 08285 HLH 48412 b checks and money orders are from sources in this State if the checks and money orders are issued from a location within this State.
(vii) Receipts from the issuance of travelers checks and money orders are from sources in this State if the checks and money orders are issued from a location within this State.
With respect to the investment and trading assets and activities described in subparagraphs (A) and (B) of this paragraph, the receipts factor shall include the amounts described in such subparagraphs.
With respect to the investment and trading assets and activities described in subparagraphs (A) and (B) HB2955 Enrolled - 151 - LRB097 08285 HLH 48412 b of this paragraph, the receipts factor shall include the amounts described in such subparagraphs.
(A) The receipts factor shall include the amount by which interest from federal funds sold and securities purchased under resale HB2955 Engrossed - 151 - LRB097 08285 HLH 48412 b agreements exceeds interest expense on federal funds purchased and securities sold under repurchase agreements.
(A) The receipts factor shall include the amount by which interest from federal funds sold and securities purchased under resale agreements exceeds interest expense on federal funds purchased and securities sold under repurchase agreements.
(A) The amount of interest, dividends, net gains (but not less than zero), and other income from investment assets and activities in the investment account to be attributed to this State and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the gross income from HB2955 Engrossed - 152 - LRB097 08285 HLH 48412 b such assets and activities which are properly assigned to a fixed place of business of the taxpayer within this State and the denominator of which is the gross income from all such assets and activities.
(A) The amount of interest, dividends, net gains (but not less than zero), and other HB2955 Enrolled - 152 - LRB097 08285 HLH 48412 b income from investment assets and activities in the investment account to be attributed to this State and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the gross income from such assets and activities which are properly assigned to a fixed place of business of the taxpayer within this State and the denominator of which is the gross income from all such assets and activities.
(C) The amount of interest, dividends, gains, and other income from trading assets and activities, including but not limited to assets and activities in the matched book, in the arbitrage book and foreign currency transactions (but excluding amounts described HB2955 Engrossed - 153 - LRB097 08285 HLH 48412 b in subparagraphs (A) or (B) of this paragraph), attributable to this State and included in the numerator is determined by multiplying the amount described in subparagraph (B) of paragraph (1) of this subsection by a fraction, the numerator of which is the gross income from such trading assets and activities which are properly assigned to a fixed place of business of the taxpayer within this State and the denominator of which is the gross income from all such assets and activities.
HB2955 Enrolled - 153 - LRB097 08285 HLH 48412 b (C) The amount of interest, dividends, gains, and other income from trading assets and activities, including but not limited to assets and activities in the matched book, in the arbitrage book and foreign currency transactions (but excluding amounts described in subparagraphs (A) or (B) of this paragraph), attributable to this State and included in the numerator is determined by multiplying the amount described in subparagraph (B) of paragraph (1) of this subsection by a fraction, the numerator of which is the gross income from such trading assets and activities which are properly assigned to a fixed place of business of the taxpayer within this State and the denominator of which is the gross income from all such assets and activities.
(i) the taxpayer has assigned, in the regular course of its business, such asset or activity on its records to a fixed place of business consistent with federal or state regulatory requirements;
HB2955 Enrolled - 154 - LRB097 08285 HLH 48412 b (i) the taxpayer has assigned, in the regular course of its business, such asset or activity on its records to a fixed place of business consistent with federal or state regulatory requirements;
(ii) such assignment on its records is HB2955 Engrossed - 154 - LRB097 08285 HLH 48412 b based upon substantive contacts of the asset or activity to such fixed place of business;
(ii) such assignment on its records is based upon substantive contacts of the asset or activity to such fixed place of business;
If the fixed place of business that has a preponderance of substantive contacts cannot be determined for an investment or trading asset or activity to which the presumption in subparagraph (D) of paragraph (2) of this subsection does not apply or with respect to which that presumption has been rebutted, that HB2955 Engrossed - 155 - LRB097 08285 HLH 48412 b asset or activity is properly assigned to the state in which the taxpayer's commercial domicile is located.
If the fixed place of business that has a HB2955 Enrolled - 155 - LRB097 08285 HLH 48412 b preponderance of substantive contacts cannot be determined for an investment or trading asset or activity to which the presumption in subparagraph (D) of paragraph (2) of this subsection does not apply or with respect to which that presumption has been rebutted, that asset or activity is properly assigned to the state in which the taxpayer's commercial domicile is located.
(1) Such business income (other than that derived from transportation by pipeline) shall be apportioned to this State by multiplying such income by a fraction, the numerator of which is the revenue miles of the person in this State, and the denominator of which is the revenue miles of the person everywhere.
(1) Such business income (other than that derived from HB2955 Enrolled - 156 - LRB097 08285 HLH 48412 b transportation by pipeline) shall be apportioned to this State by multiplying such income by a fraction, the numerator of which is the revenue miles of the person in this State, and the denominator of which is the revenue miles of the person everywhere.
For purposes of this paragraph, a revenue mile is the transportation of 1 HB2955 Engrossed - 156 - LRB097 08285 HLH 48412 b passenger or 1 net ton of freight the distance of 1 mile for a consideration.
For purposes of this paragraph, a revenue mile is the transportation of 1 passenger or 1 net ton of freight the distance of 1 mile for a consideration.
For the purposes of this paragraph, a revenue mile is the transportation by pipeline of 1 barrel of oil, 1,000 cubic feet of gas, or of any specified quantity of any other substance, the distance of 1 mile for a consideration.
For the purposes of this paragraph, a revenue HB2955 Enrolled - 157 - LRB097 08285 HLH 48412 b mile is the transportation by pipeline of 1 barrel of oil, 1,000 cubic feet of gas, or of any specified quantity of any other substance, the distance of 1 mile for a consideration.
(3) For taxable years ending on or after December 31, 2008, business income derived from providing HB2955 Engrossed - 157 - LRB097 08285 HLH 48412 b transportation services other than airline services shall be apportioned to this State by using a fraction, (a) the numerator of which shall be (i) all receipts from any movement or shipment of people, goods, mail, oil, gas, or any other substance (other than by airline) that both originates and terminates in this State, plus (ii) that portion of the person's gross receipts from movements or shipments of people, goods, mail, oil, gas, or any other substance (other than by airline) that originates in one state or jurisdiction and terminates in another state or jurisdiction, that is determined by the ratio that the miles traveled in this State bears to total miles everywhere and (b) the denominator of which shall be all revenue derived from the movement or shipment of people, goods, mail, oil, gas, or any other substance (other than by airline).
(3) For taxable years ending on or after December 31, 2008, business income derived from providing transportation services other than airline services shall be apportioned to this State by using a fraction, (a) the numerator of which shall be (i) all receipts from any movement or shipment of people, goods, mail, oil, gas, or any other substance (other than by airline) that both originates and terminates in this State, plus (ii) that portion of the person's gross receipts from movements or shipments of people, goods, mail, oil, gas, or any other substance (other than by airline) that originates in one state or jurisdiction and terminates in another state or jurisdiction, that is determined by the ratio that the miles traveled in this State bears to total miles everywhere and (b) the denominator of which shall be all revenue derived from the movement or shipment of people, goods, mail, oil, gas, or any other substance (other than by airline).
Then an average of the passenger miles fraction and the freight miles fraction shall be weighted to reflect the taxpayer's:
Then an average of the passenger miles fraction and the freight HB2955 Enrolled - 158 - LRB097 08285 HLH 48412 b miles fraction shall be weighted to reflect the taxpayer's:
and (B) relative gross receipts from passenger and HB2955 Engrossed - 158 - LRB097 08285 HLH 48412 b freight transportation, in case of transportation other than by railroad.
and (B) relative gross receipts from passenger and freight transportation, in case of transportation other than by railroad.
Where 2 or more persons are engaged in a unitary business as described in subsection (a)(27) of Section 1501, a part of which is conducted in this State by one or more members of the group, the business income attributable to this State by any such member or members shall be apportioned by means of the combined apportionment method.
Where 2 or more persons are engaged in a unitary business as described in subsection (a)(27) of Section 1501, a part of which is conducted in this HB2955 Enrolled - 159 - LRB097 08285 HLH 48412 b State by one or more members of the group, the business income attributable to this State by any such member or members shall be apportioned by means of the combined apportionment method.
If the allocation and apportionment provisions of subsections (a) through (e) and of subsection (h) do not fairly represent the extent of a person's HB2955 Engrossed - 159 - LRB097 08285 HLH 48412 b business activity in this State, the person may petition for, or the Director may, without a petition, permit or require, in respect of all or any part of the person's business activity, if reasonable:
If the allocation and apportionment provisions of subsections (a) through (e) and of subsection (h) do not fairly represent the extent of a person's business activity in this State, the person may petition for, or the Director may, without a petition, permit or require, in respect of all or any part of the person's business activity, if reasonable:
(1) for tax years ending on or after December 31, 1998 and before December 31, 1999, 16 2/3% of the property factor plus 16 2/3% of the payroll factor plus 66 2/3% of the sales factor;
(1) for tax years ending on or after December 31, 1998 and before December 31, 1999, 16 2/3% of the property factor plus 16 2/3% of the payroll factor plus 66 2/3% of HB2955 Enrolled - 160 - LRB097 08285 HLH 48412 b the sales factor;
(3) for tax years ending on or after December 31, 2000, HB2955 Engrossed - 160 - LRB097 08285 HLH 48412 b the sales factor.
(3) for tax years ending on or after December 31, 2000, the sales factor.
(1) for which such person is liable for a tax imposed by this Act, or (2) in the case of a resident or in the case of a corporation which is qualified to do business in this State, for which such person is required to make a federal income tax return, regardless of whether such person is liable for a tax imposed by this Act.
(1) for which such person is liable for a tax imposed by this Act, or (2) in the case of a resident or in the case of a corporation which is qualified to do business in this State, for which such person is required to make a federal HB2955 Enrolled - 161 - LRB097 08285 HLH 48412 b income tax return, regardless of whether such person is liable for a tax imposed by this Act.
However, this paragraph shall not require a resident to make a return if such person has an Illinois base income of the basic amount in Section 204(b) or less and is either claimed as a dependent on another person's tax return under the Internal HB2955 Engrossed - 161 - LRB097 08285 HLH 48412 b Revenue Code of 1986, or is claimed as a dependent on another person's tax return under this Act.
However, this paragraph shall not require a resident to make a return if such person has an Illinois base income of the basic amount in Section 204(b) or less and is either claimed as a dependent on another person's tax return under the Internal Revenue Code of 1986, or is claimed as a dependent on another person's tax return under this Act.
If an individual is unable to make a return or notice required under this Act, the return or notice required of such individual shall be made by his duly authorized agent, guardian, fiduciary or other person charged with the care of the person or property of such individual.
If an individual is unable to make a return or notice required under this Act, the return or notice required of such individual shall be made by his duly authorized agent, guardian, fiduciary or HB2955 Enrolled - 162 - LRB097 08285 HLH 48412 b other person charged with the care of the person or property of such individual.
(4) Receivers, trustees and assignees for HB2955 Engrossed - 162 - LRB097 08285 HLH 48412 b corporations.
(4) Receivers, trustees and assignees for corporations.
The election under this paragraph must be made on or before the due date (including extensions) of the return and, once made, shall be irrevocable.
The HB2955 Enrolled - 163 - LRB097 08285 HLH 48412 b election under this paragraph must be made on or before the due date (including extensions) of the return and, once made, shall be irrevocable.
(i) the couple must file a joint return under this Act for such taxable year, HB2955 Engrossed - 163 - LRB097 08285 HLH 48412 b (ii) their liabilities shall be joint and several, and (iii) any overpayment for that taxable year may be withheld under Section 909 of this Act or under Section 2505-275 of the Civil Administrative Code of Illinois and applied against a debt of either spouse without regard to the amount of the overpayment attributable to the other spouse;
(i) the couple must file a joint return under this Act for such taxable year, (ii) their liabilities shall be joint and several, and (iii) any overpayment for that taxable year may be withheld under Section 909 of this Act or under Section 2505-275 of the Civil Administrative Code of Illinois and applied against a debt of either spouse without regard to the amount of the overpayment attributable to the other spouse;
(3) If either husband or wife is a resident and the other is a nonresident, they shall file separate returns in this State on such forms as may be required by the Department in which event their tax liabilities shall be separate;
(3) If either husband or wife is a resident and the other is a nonresident, they shall file separate returns in this State on such forms as may be required by the HB2955 Enrolled - 164 - LRB097 08285 HLH 48412 b Department in which event their tax liabilities shall be separate;
but if they file a joint federal income tax return for a taxable year, they may elect to determine their joint net income and file a joint return for that taxable year under the provisions of paragraph (1) of this subsection as if both were residents and in such case, HB2955 Engrossed - 164 - LRB097 08285 HLH 48412 b their liabilities shall be joint and several.
but if they file a joint federal income tax return for a taxable year, they may elect to determine their joint net income and file a joint return for that taxable year under the provisions of paragraph (1) of this subsection as if both were residents and in such case, their liabilities shall be joint and several.
(B) For tax liabilities arising on and after August 13, 1999 or which arose prior to that date, but remain unpaid as of that date, if an individual who filed a joint return for any taxable year has made an election under this paragraph, the individual's liability for any tax shown on the joint return shall not exceed the individual's separate return amount and the individual's liability for any deficiency assessed for that taxable year shall not exceed the portion of the deficiency properly allocable to the individual.
(B) For tax liabilities arising on and after August 13, 1999 or which arose prior to that date, but remain unpaid as of that date, if an individual who filed a joint return for any taxable year has made an election HB2955 Enrolled - 165 - LRB097 08285 HLH 48412 b under this paragraph, the individual's liability for any tax shown on the joint return shall not exceed the individual's separate return amount and the individual's liability for any deficiency assessed for that taxable year shall not exceed the portion of the deficiency properly allocable to the individual.
For HB2955 Engrossed - 165 - LRB097 08285 HLH 48412 b purposes of this paragraph:
For purposes of this paragraph:
(ii) If no election has been made under Section 6015, the individual may make an election under this paragraph in the form and manner prescribed by the Department, provided that no election may be made if the Department finds that assets were transferred between individuals filing a joint return as part of a scheme by such individuals to avoid payment of Illinois income tax and the election shall not eliminate the individual's liability for any portion of a deficiency attributable to an error on the return of which the individual had actual knowledge as of the date of filing.
(ii) If no election has been made under Section 6015, the individual may make an election under this paragraph in the form and manner prescribed by the Department, provided that no election may be made if the Department finds that assets were transferred between individuals filing a joint return as part of a scheme by such individuals to avoid payment of Illinois income tax and the election shall not eliminate the individual's liability for any portion of a deficiency attributable to an error on the return of which the individual had actual knowledge as of the date of HB2955 Enrolled - 166 - LRB097 08285 HLH 48412 b filing.
HB2955 Engrossed - 166 - LRB097 08285 HLH 48412 b (iv) In determining the validity of an individual's election under subparagraph (ii) and in determining an electing individual's separate return amount or portion of any deficiency under subparagraph (iii), any determination made by the Secretary of the Treasury, by the United States Tax Court on petition for review of a determination by the Secretary of the Treasury, or on appeal from the United States Tax Court under Section 6015 of the Internal Revenue Code regarding criteria for eligibility or under subsection (d) of Section 6015 of the Internal Revenue Code regarding the allocation of any item of income, deduction, payment, or credit between an individual making the federal election and that individual's spouse shall be conclusively presumed to be correct.
(iv) In determining the validity of an individual's election under subparagraph (ii) and in determining an electing individual's separate return amount or portion of any deficiency under subparagraph (iii), any determination made by the Secretary of the Treasury, by the United States Tax Court on petition for review of a determination by the Secretary of the Treasury, or on appeal from the United States Tax Court under Section 6015 of the Internal Revenue Code regarding criteria for eligibility or under subsection (d) of Section 6015 of the Internal Revenue Code regarding the allocation of any item of income, deduction, payment, or credit between an individual making the federal election and that individual's spouse shall be conclusively presumed to be correct.
With respect to any item that is not the subject of a determination by the Secretary of the Treasury or the federal courts, in any proceeding involving this subsection, the individual making the election shall have the burden of proof with respect to any item except that the Department shall have the burden of proof with respect to items in subdivision (ii).
With respect to any item that is not the subject of a determination by the Secretary of the Treasury or the federal courts, in any proceeding involving this subsection, the individual making the HB2955 Enrolled - 167 - LRB097 08285 HLH 48412 b election shall have the burden of proof with respect to any item except that the Department shall have the burden of proof with respect to items in subdivision (ii).
(v) Any election made by an individual under this subsection shall apply to all years for which HB2955 Engrossed - 167 - LRB097 08285 HLH 48412 b that individual and the spouse named in the election have filed a joint return.
(v) Any election made by an individual under this subsection shall apply to all years for which that individual and the spouse named in the election have filed a joint return.
If a protest is filed, the Department shall take no collection action against the electing individual until the decision regarding the protest has become final under subsection (d) of Section 908 or, if administrative review of the Department's decision is requested under Section 1201, until the HB2955 Engrossed - 168 - LRB097 08285 HLH 48412 b decision of the court becomes final.
If a protest is filed, the HB2955 Enrolled - 168 - LRB097 08285 HLH 48412 b Department shall take no collection action against the electing individual until the decision regarding the protest has become final under subsection (d) of Section 908 or, if administrative review of the Department's decision is requested under Section 1201, until the decision of the court becomes final.
(e) For taxable years ending on or after December 31, 1985, and before December 31, 1993, taxpayers that are corporations (other than Subchapter S corporations) having the same taxable year and that are members of the same unitary business group may elect to be treated as one taxpayer for purposes of any original return, amended return which includes the same taxpayers of the unitary group which joined in the election to file the original return, extension, claim for refund, assessment, collection and payment and determination of the group's tax liability under this Act.
(e) For taxable years ending on or after December 31, 1985, and before December 31, 1993, taxpayers that are corporations (other than Subchapter S corporations) having the same taxable year and that are members of the same unitary business group may elect to be treated as one taxpayer for purposes of any original return, amended return which includes the same taxpayers of the unitary group which joined in the election to file the original return, extension, claim for refund, HB2955 Enrolled - 169 - LRB097 08285 HLH 48412 b assessment, collection and payment and determination of the group's tax liability under this Act.
For taxable years ending on or after December 31, 1987, corporate members (other than Subchapter S corporations) of the same unitary business group HB2955 Engrossed - 169 - LRB097 08285 HLH 48412 b making this subsection (e) election are not required to have the same taxable year.
For taxable years ending on or after December 31, 1987, corporate members (other than Subchapter S corporations) of the same unitary business group making this subsection (e) election are not required to have the same taxable year.
(f) The Department may promulgate regulations to permit nonresident individual partners of the same partnership, nonresident Subchapter S corporation shareholders of the same Subchapter S corporation, and nonresident individuals transacting an insurance business in Illinois under a Lloyds plan of operation, and nonresident individual members of the same limited liability company that is treated as a partnership under Section 1501 (a)(16) of this Act, to file composite individual income tax returns reflecting the composite income of such individuals allocable to Illinois and to make composite individual income tax payments.
(f) The Department may promulgate regulations to permit nonresident individual partners of the same partnership, nonresident Subchapter S corporation shareholders of the same Subchapter S corporation, and nonresident individuals transacting an insurance business in Illinois under a Lloyds plan of operation, and nonresident individual members of the same limited liability company that is treated as a partnership under Section 1501 (a)(16) of this Act, to file composite individual income tax returns reflecting the composite income HB2955 Enrolled - 170 - LRB097 08285 HLH 48412 b of such individuals allocable to Illinois and to make composite individual income tax payments.
The Department may by regulation also permit such composite returns to include the income tax owed by Illinois residents attributable to their income from partnerships, Subchapter S corporations, insurance businesses organized under a Lloyds plan of operation, or HB2955 Engrossed - 170 - LRB097 08285 HLH 48412 b limited liability companies that are treated as partnership under Section 1501(a)(16) of this Act, in which case such Illinois residents will be permitted to claim credits on their individual returns for their shares of the composite tax payments.
The Department may by regulation also permit such composite returns to include the income tax owed by Illinois residents attributable to their income from partnerships, Subchapter S corporations, insurance businesses organized under a Lloyds plan of operation, or limited liability companies that are treated as partnership under Section 1501(a)(16) of this Act, in which case such Illinois residents will be permitted to claim credits on their individual returns for their shares of the composite tax payments.
For taxable years ending on or after December 31, 1999, the Department may, by regulation, also permit any persons transacting an insurance business organized under a Lloyds plan of operation to file composite returns reflecting the income of such persons allocable to Illinois and the tax rates applicable to such persons under Section 201 and to make composite tax payments and shall, by regulation, also provide that the income and apportionment factors attributable to the transaction of an insurance business organized under a Lloyds plan of operation by any person joining in the filing of a composite return shall, for purposes of allocating and apportioning income under Article 3 of this Act and computing net income under Section 202 of this Act, be excluded from any other income and apportionment factors of that person or of any unitary business group, as defined in subdivision (a)(27) of Section 1501, to which that person may belong.
For taxable years ending on or after December 31, 1999, the Department may, by regulation, also permit any persons transacting an insurance business organized under a Lloyds plan of operation to file composite returns reflecting the income of such persons allocable to Illinois and the tax rates applicable to such persons under Section 201 and to make composite tax payments and shall, by regulation, also provide that the income and apportionment factors attributable to the transaction of an insurance business organized under a Lloyds plan of operation by any person joining in the filing of a composite return shall, for purposes of allocating and apportioning income under Article 3 of this Act and computing net income under Section 202 of this Act, be excluded from any other income and apportionment factors of that person or of any unitary business HB2955 Enrolled - 171 - LRB097 08285 HLH 48412 b group, as defined in subdivision (a)(27) of Section 1501, to which that person may belong.
For taxable years ending on or after December 31, 2008, every nonresident shall be allowed a credit against his or her liability under subsections (a) and (b) of Section 201 for any amount of tax reported on a composite return and paid on his or HB2955 Engrossed - 171 - LRB097 08285 HLH 48412 b her behalf under this subsection (f).
For taxable years ending on or after December 31, 2008, every nonresident shall be allowed a credit against his or her liability under subsections (a) and (b) of Section 201 for any amount of tax reported on a composite return and paid on his or her behalf under this subsection (f).
8-14-09.) (35 ILCS 5/506) (from Ch.
8-14-09.) HB2955 Enrolled - 172 - LRB097 08285 HLH 48412 b (35 ILCS 5/506) (from Ch.
Any person required to make a return for a taxable year under this Act may, at any time that a deficiency could be assessed or a refund claimed under this Act in respect HB2955 Engrossed - 172 - LRB097 08285 HLH 48412 b of any item reported or properly reportable on such return or any amendment thereof, be required to furnish to the Department a true and correct copy of any return which may pertain to such item and which was filed by such person under the provisions of the Internal Revenue Code.
Any person required to make a return for a taxable year under this Act may, at any time that a deficiency could be assessed or a refund claimed under this Act in respect of any item reported or properly reportable on such return or any amendment thereof, be required to furnish to the Department a true and correct copy of any return which may pertain to such item and which was filed by such person under the provisions of the Internal Revenue Code.
(1) the taxable income, any item of income or deduction, the income tax liability, or any tax credit reported in an original or amended a federal income tax return of that person for any year or as determined by the Internal Revenue Service or the courts is altered by amendment of such return or as a result of any other recomputation or redetermination of federal taxable income or loss, and such alteration reflects a change or settlement with respect to any item or items, affecting the computation of such person's net income, net loss, or of any credit provided by Article 2 of this Act for any year under this Act, or in the number of personal exemptions allowable to such person under Section 151 of the Internal Revenue Code, or (2) the amount of tax required to be withheld by that person from compensation paid to employees and required to be reported by that person on a federal return is altered by amendment of the return or by any other recomputation or redetermination that is agreed to or finally determined on HB2955 Engrossed - 173 - LRB097 08285 HLH 48412 b or after January 1, 2003, and the alteration affects the amount of compensation subject to withholding by that person under Section 701 of this Act.
(1) the taxable income, any item of income or deduction, the income tax liability, or any tax credit reported in an original or amended a federal income tax return of that person for any year or as determined by the Internal Revenue Service or the courts is altered by amendment of such return or as a result of any other recomputation or redetermination of federal taxable income or loss, and such alteration reflects a change or settlement with respect to any item or items, affecting the computation of such person's net income, net loss, or of any credit provided by Article 2 of this Act for any year under this Act, or in the number of personal exemptions allowable to such person under Section 151 of the Internal HB2955 Enrolled - 173 - LRB097 08285 HLH 48412 b Revenue Code, or (2) the amount of tax required to be withheld by that person from compensation paid to employees and required to be reported by that person on a federal return is altered by amendment of the return or by any other recomputation or redetermination that is agreed to or finally determined on or after January 1, 2003, and the alteration affects the amount of compensation subject to withholding by that person under Section 701 of this Act.
Every taxpayer required to file a return under this Act shall, without assessment, notice or demand, pay any tax due thereon to the Department, at the place fixed for filing, on or before the date fixed for filing such return (determined without regard to any extension of time for filing the return) pursuant to regulations prescribed by the Department.
Every taxpayer required to file a return under this Act shall, without assessment, notice or demand, pay HB2955 Enrolled - 174 - LRB097 08285 HLH 48412 b any tax due thereon to the Department, at the place fixed for filing, on or before the date fixed for filing such return (determined without regard to any extension of time for filing the return) pursuant to regulations prescribed by the Department.
If, however, the due date for payment of a taxpayer's federal income tax liability for a tax year (as HB2955 Engrossed - 174 - LRB097 08285 HLH 48412 b provided in the Internal Revenue Code or by Treasury regulation, or as extended by the Internal Revenue Service) is later than the date fixed for filing the taxpayer's Illinois income tax return for that tax year, the Department may, by rule, prescribe a due date for payment that is not later than the due date for payment of the taxpayer's federal income tax liability.
If, however, the due date for payment of a taxpayer's federal income tax liability for a tax year (as provided in the Internal Revenue Code or by Treasury regulation, or as extended by the Internal Revenue Service) is later than the date fixed for filing the taxpayer's Illinois income tax return for that tax year, the Department may, by rule, prescribe a due date for payment that is not later than the due date for payment of the taxpayer's federal income tax liability.
If more than one taxable year begins in a calendar year, such amount shall be deemed to have been paid on account of such tax for the last taxable year so beginning.
If more than one taxable year begins in a calendar year, such amount shall be deemed to have been HB2955 Enrolled - 175 - LRB097 08285 HLH 48412 b paid on account of such tax for the last taxable year so beginning.
HB2955 Engrossed - 175 - LRB097 08285 HLH 48412 b (3) Foreign tax.
(3) Foreign tax.
For taxable years ending on or after December 31, 2009, the credit provided under this paragraph for tax paid to other states shall not exceed that amount which bears the same ratio to the tax imposed by subsections 201(a) and (b) otherwise due under this Act as the amount of the taxpayer's base income that would be allocated or apportioned to other states if all other states had adopted the provisions in Article 3 of this Act bears to the taxpayer's total base income subject to tax by this State for the taxable year.
For taxable years ending on or after December 31, 2009, the credit provided under this paragraph for tax paid to other states shall not exceed that amount which bears the same ratio to the tax imposed by subsections 201(a) and (b) otherwise due under this Act as the amount of the taxpayer's base income that HB2955 Enrolled - 176 - LRB097 08285 HLH 48412 b would be allocated or apportioned to other states if all other states had adopted the provisions in Article 3 of this Act bears to the taxpayer's total base income subject to tax by this State for the taxable year.
The credit provided by this paragraph shall not be allowed if any creditable tax was deducted in determining base income for HB2955 Engrossed - 176 - LRB097 08285 HLH 48412 b the taxable year.
The credit provided by this paragraph shall not be allowed if any creditable tax was deducted in determining base income for the taxable year.
The credit provided by this paragraph shall not reduce the tax otherwise due from the taxpayer to an amount less than that which would be due if the amounts included by reason of Section 667 Sections 668 and 669 of the Internal Revenue Code were excluded from his or her base income.
The credit provided by this paragraph shall not reduce the tax otherwise due from the taxpayer to an amount less than that which would be due if the amounts included by reason of Section 667 Sections 668 HB2955 Enrolled - 177 - LRB097 08285 HLH 48412 b and 669 of the Internal Revenue Code were excluded from his or her base income.
8-14-09.) HB2955 Engrossed - 177 - LRB097 08285 HLH 48412 b (35 ILCS 5/701) (from Ch.
8-14-09.) (35 ILCS 5/701) (from Ch.
Any payment (including compensation) to a resident by a payor maintaining an office or transacting business within this State (including any agency, officer, or employee of this State or of any political subdivision of this State) and on which withholding of tax is required under the provisions of the Internal Revenue Code shall be deemed to be compensation paid in this State by an employer to an employee for the purposes of Article 7 and Section 601(b)(1) to the extent such payment is included in the HB2955 Engrossed - 178 - LRB097 08285 HLH 48412 b recipient's base income and not subjected to withholding by another state.
Any payment (including compensation) to a resident by a payor maintaining an office or transacting business within this State (including any agency, HB2955 Enrolled - 178 - LRB097 08285 HLH 48412 b officer, or employee of this State or of any political subdivision of this State) and on which withholding of tax is required under the provisions of the Internal Revenue Code shall be deemed to be compensation paid in this State by an employer to an employee for the purposes of Article 7 and Section 601(b)(1) to the extent such payment is included in the recipient's base income and not subjected to withholding by another state.
in such case, any compensation paid in this State to residents of such state shall be exempt from withholding.
in such case, any HB2955 Enrolled - 179 - LRB097 08285 HLH 48412 b compensation paid in this State to residents of such state shall be exempt from withholding.
(e) Notwithstanding subsection (a)(2) of this Section, no withholding is required on payments for which withholding is HB2955 Engrossed - 179 - LRB097 08285 HLH 48412 b required under Section 3405 or 3406 of the Internal Revenue Code of 1954.
(e) Notwithstanding subsection (a)(2) of this Section, no withholding is required on payments for which withholding is required under Section 3405 or 3406 of the Internal Revenue Code of 1954.
The employer may rely on this information for withholding purposes.
The employer may HB2955 Enrolled - 180 - LRB097 08285 HLH 48412 b rely on this information for withholding purposes.
7-9-98.) HB2955 Engrossed - 180 - LRB097 08285 HLH 48412 b (35 ILCS 5/703) (from Ch.
7-9-98.) (35 ILCS 5/703) (from Ch.
6-28-01.) (35 ILCS 5/704A) Sec.
6-28-01.) HB2955 Enrolled - 181 - LRB097 08285 HLH 48412 b (35 ILCS 5/704A) Sec.
(a) In general, every employer who deducts and withholds or is required to deduct and withhold tax under this Act on or after January 1, 2008 shall make those payments and returns as HB2955 Engrossed - 181 - LRB097 08285 HLH 48412 b provided in this Section.
(a) In general, every employer who deducts and withholds or is required to deduct and withhold tax under this Act on or after January 1, 2008 shall make those payments and returns as provided in this Section.
(B) on or before each Wednesday of the calendar year, for taxes withheld or required to be withheld on the immediately preceding Wednesday, Thursday, or Friday.
(B) on or before each Wednesday of the calendar year, for taxes withheld or required to be withheld on the immediately preceding Wednesday, Thursday, or HB2955 Enrolled - 182 - LRB097 08285 HLH 48412 b Friday.
Any employer who withholds or is required to withhold more than $12,000 in any quarter HB2955 Engrossed - 182 - LRB097 08285 HLH 48412 b of a calendar year is required to make payments on the dates set forth under item (1) of this subsection (c) for each remaining quarter of that calendar year and for the subsequent calendar year.
Any employer who withholds or is required to withhold more than $12,000 in any quarter of a calendar year is required to make payments on the dates set forth under item (1) of this subsection (c) for each remaining quarter of that calendar year and for the subsequent calendar year.
(1) Permit employers, in lieu of the requirements of subsections (b) and (c), to file annual returns due on or before January 31 of the year for taxes withheld or required to be withheld during the previous calendar year and, if the aggregate amounts required to be withheld by the employer under this Article 7 (other than amounts required to be withheld under Section 709.5) do not exceed $1,000 for the previous calendar year, to pay the taxes required to be shown on each such return no later than the due date for such return.
(1) Permit employers, in lieu of the requirements of subsections (b) and (c), to file annual returns due on or before January 31 of the year for taxes withheld or required to be withheld during the previous calendar year and, if the aggregate amounts required to be withheld by HB2955 Enrolled - 183 - LRB097 08285 HLH 48412 b the employer under this Article 7 (other than amounts required to be withheld under Section 709.5) do not exceed $1,000 for the previous calendar year, to pay the taxes required to be shown on each such return no later than the due date for such return.
(2) Provide that any payment required to be made under HB2955 Engrossed - 183 - LRB097 08285 HLH 48412 b subsection (c)(1) or (c)(2) is deemed to be timely to the extent paid by electronic funds transfer on or before the due date for deposit of federal income taxes withheld from, or federal employment taxes due with respect to, the wages from which the Illinois taxes were withheld.
(2) Provide that any payment required to be made under subsection (c)(1) or (c)(2) is deemed to be timely to the extent paid by electronic funds transfer on or before the due date for deposit of federal income taxes withheld from, or federal employment taxes due with respect to, the wages from which the Illinois taxes were withheld.
The Department may allow the employer's return to be submitted with the employer's individual income tax return or to be submitted with a return due from the employer under Section 1400.2 of the Unemployment Insurance Act.
The Department may allow the employer's return to HB2955 Enrolled - 184 - LRB097 08285 HLH 48412 b be submitted with the employer's individual income tax return or to be submitted with a return due from the employer under Section 1400.2 of the Unemployment Insurance Act.
Any W-2 Form that, under the Internal Revenue Code and regulations promulgated thereunder, is required to be submitted to the HB2955 Engrossed - 184 - LRB097 08285 HLH 48412 b Internal Revenue Service on magnetic media or electronically must also be submitted to the Department on magnetic media or electronically for Illinois purposes, if required by the Department.
Any W-2 Form that, under the Internal Revenue Code and regulations promulgated thereunder, is required to be submitted to the Internal Revenue Service on magnetic media or electronically must also be submitted to the Department on magnetic media or electronically for Illinois purposes, if required by the Department.
The credit or credits may not reduce the taxpayer's obligation for any payment due under this Section to less than zero.
The credit or credits may not reduce the taxpayer's obligation for any payment due under HB2955 Enrolled - 185 - LRB097 08285 HLH 48412 b this Section to less than zero.
If the amount of the credit or credits exceeds the total payments due under this Section with respect to amounts withheld during the calendar year, the excess may be carried forward and applied against the taxpayer's liability under this Section in the succeeding calendar years as allowed to be carried forward under paragraph HB2955 Engrossed - 185 - LRB097 08285 HLH 48412 b (4) of Section 211 of this Act.
If the amount of the credit or credits exceeds the total payments due under this Section with respect to amounts withheld during the calendar year, the excess may be carried forward and applied against the taxpayer's liability under this Section in the succeeding calendar years as allowed to be carried forward under paragraph (4) of Section 211 of this Act.
(h) An employer may claim a credit against payments due under this Section for amounts withheld during the first calendar year ending after the date on which a tax credit certificate was issued under Section 35 of the Small Business Job Creation Tax Credit Act.
(h) An employer may claim a credit against payments due under this Section for amounts withheld during the first HB2955 Enrolled - 186 - LRB097 08285 HLH 48412 b calendar year ending after the date on which a tax credit certificate was issued under Section 35 of the Small Business Job Creation Tax Credit Act.
If the amount of the credit exceeds the total HB2955 Engrossed - 186 - LRB097 08285 HLH 48412 b payments due under this Section with respect to amounts withheld during the calendar year, the excess may be carried forward and applied against the taxpayer's liability under this Section in the 5 succeeding calendar years.
If the amount of the credit exceeds the total payments due under this Section with respect to amounts withheld during the calendar year, the excess may be carried forward and applied against the taxpayer's liability under this Section in the 5 succeeding calendar years.
For each taxable year ending on or after December 31, 2008, every partnership (other than a publicly traded partnership under Section 7704 of the Internal Revenue Code or investment partnership), Subchapter S corporation, and trust must withhold from each nonresident partner, shareholder, or beneficiary (other than a partner, shareholder, or beneficiary who is exempt from tax under Section 501(a) of the Internal Revenue Code or under Section 205 of this Act, or who is included on a composite return filed by the partnership or Subchapter S corporation for the taxable HB2955 Engrossed - 187 - LRB097 08285 HLH 48412 b year under subsection (f) of Section 502 of this Act), or who is a retired partner, to the extent that partner's distributions are exempt from tax under Section 203(a)(2)(F) of this Act) an amount equal to the distributable share of the business income of the partnership, Subchapter S corporation, or trust apportionable to Illinois of that partner, shareholder, or beneficiary under Sections 702 and 704 and Subchapter S of the Internal Revenue Code, whether or not distributed, multiplied by the applicable rates of tax for that partner or shareholder under subsections (a) through (d) of Section 201 of this Act.
For each taxable year ending on or after December 31, 2008, every partnership (other than a publicly traded partnership under Section 7704 of the Internal Revenue Code or investment partnership), Subchapter S corporation, and HB2955 Enrolled - 187 - LRB097 08285 HLH 48412 b trust must withhold from each nonresident partner, shareholder, or beneficiary (other than a partner, shareholder, or beneficiary who is exempt from tax under Section 501(a) of the Internal Revenue Code or under Section 205 of this Act, or who is included on a composite return filed by the partnership or Subchapter S corporation for the taxable year under subsection (f) of Section 502 of this Act), or who is a retired partner, to the extent that partner's distributions are exempt from tax under Section 203(a)(2)(F) of this Act) an amount equal to the distributable share of the business income of the partnership, Subchapter S corporation, or trust apportionable to Illinois of that partner, shareholder, or beneficiary under Sections 702 and 704 and Subchapter S of the Internal Revenue Code, whether or not distributed, multiplied by the applicable rates of tax for that partner or shareholder under subsections (a) through (d) of Section 201 of this Act.
The Department shall adopt rules pursuant to which a partner, shareholder, or beneficiary may claim a credit against its obligation for withholding under this Section for amounts withheld under this Section with respect to income distributable to it by a partnership, Subchapter S corporation, or trust and allowing its partners, shareholders, or beneficiaries to claim a credit under this subsection (b) for those withheld amounts.
The Department shall adopt rules pursuant to which a partner, shareholder, or beneficiary may claim a credit against HB2955 Enrolled - 188 - LRB097 08285 HLH 48412 b its obligation for withholding under this Section for amounts withheld under this Section with respect to income distributable to it by a partnership, Subchapter S corporation, or trust and allowing its partners, shareholders, or beneficiaries to claim a credit under this subsection (b) for those withheld amounts.
HB2955 Engrossed - 188 - LRB097 08285 HLH 48412 b (c) Exemption from withholding.
(c) Exemption from withholding.
and (B) be subject to personal jurisdiction in this State for purposes of the collection of income taxes, together with related interest and penalties, imposed on the partner, shareholder, or beneficiary with respect to the income of the partnership, S corporation, or trust.
and (B) be subject to personal jurisdiction in this State for purposes of the collection of income taxes, together with related interest and penalties, imposed on the partner, shareholder, or beneficiary with HB2955 Enrolled - 189 - LRB097 08285 HLH 48412 b respect to the income of the partnership, S corporation, or trust.
The Department HB2955 Engrossed - 189 - LRB097 08285 HLH 48412 b shall notify the partnership, S corporation, or trust that it has revoked a certificate by notice left at the usual place of business of the partnership, S corporation, or trust or by mail to the last known address of the partnership, S corporation, or trust.
The Department shall notify the partnership, S corporation, or trust that it has revoked a certificate by notice left at the usual place of business of the partnership, S corporation, or trust or by mail to the last known address of the partnership, S corporation, or trust.
(4) Certificates received by a the partnership, S corporation, or trust under this subsection (c) must be retained by the partnership, S corporation, or trust and a record of such certificates must be provided to the Department, in a format in which the record is available for review by the Department, upon request by the Department.
(4) Certificates received by a the partnership, S corporation, or trust under this subsection (c) must be retained by the partnership, S corporation, or trust and a record of such certificates must be provided to the Department, in a format in which the record is available HB2955 Enrolled - 190 - LRB097 08285 HLH 48412 b for review by the Department, upon request by the Department.
1-11-08.) HB2955 Engrossed - 190 - LRB097 08285 HLH 48412 b (35 ILCS 5/804) (from Ch.
1-11-08.) (35 ILCS 5/804) (from Ch.
(B) Required Annual Payment.
HB2955 Enrolled - 191 - LRB097 08285 HLH 48412 b (B) Required Annual Payment.
For purposes of subparagraph (A), the term "required annual payment" means the lesser of (i) 90% of the tax shown on the return for the taxable year, or if no return is filed, 90% of the tax for such year, HB2955 Engrossed - 191 - LRB097 08285 HLH 48412 b (ii) for installments due prior to February 1, 2011, and after January 31, 2012, 100% of the tax shown on the return of the taxpayer for the preceding taxable year if a return showing a liability for tax was filed by the taxpayer for the preceding taxable year and such preceding year was a taxable year of 12 months;
For purposes of subparagraph (A), the term "required annual payment" means the lesser of (i) 90% of the tax shown on the return for the taxable year, or if no return is filed, 90% of the tax for such year, (ii) for installments due prior to February 1, 2011, and after January 31, 2012, 100% of the tax shown on the return of the taxpayer for the preceding taxable year if a return showing a liability for tax was filed by the taxpayer for the preceding taxable year and such preceding year was a taxable year of 12 months;
In the case of any required installment if a taxpayer establishes that the annualized income installment is less than the amount determined under paragraph (1), (i) the amount of such required installment shall be the annualized income installment, and (ii) any reduction in a required installment resulting from the application of this subparagraph shall be recaptured by increasing the HB2955 Engrossed - 192 - LRB097 08285 HLH 48412 b amount of the next required installment determined under paragraph (1) by the amount of such reduction, and by increasing subsequent required installments to the extent that the reduction has not previously been recaptured under this clause.
In the case of any required installment if a taxpayer establishes that the annualized income installment is less than the amount HB2955 Enrolled - 192 - LRB097 08285 HLH 48412 b determined under paragraph (1), (i) the amount of such required installment shall be the annualized income installment, and (ii) any reduction in a required installment resulting from the application of this subparagraph shall be recaptured by increasing the amount of the next required installment determined under paragraph (1) by the amount of such reduction, and by increasing subsequent required installments to the extent that the reduction has not previously been recaptured under this clause.
22.5% 2nd................................
22.5% HB2955 Enrolled - 193 - LRB097 08285 HLH 48412 b 2nd................................
HB2955 Engrossed - 193 - LRB097 08285 HLH 48412 b (i) multiplying by 12, or in the case of a taxable year of less than 12 months, by the number of months in the taxable year, the net income computed without regard to the standard exemption for the months in the taxable year ending before the month in which the installment is required to be paid;
(i) multiplying by 12, or in the case of a taxable year of less than 12 months, by the number of months in the taxable year, the net income computed without regard to the standard exemption for the months in the taxable year ending before the month in which the installment is required to be paid;
For corporations, net income shall be placed on an annualized basis by multiplying by 12 the taxable income (i) for the first 3 months of the taxable year, in the case of the installment required to be paid in the 4th month, (ii) for the first 3 months or for the first 5 months of the taxable year, in the case of the installment required to be paid in the 6th month, (iii) for the first 6 months or for the first 8 months of the taxable year, in the case of the HB2955 Engrossed - 194 - LRB097 08285 HLH 48412 b installment required to be paid in the 9th month, and (iv) for the first 9 months or for the first 11 months of the taxable year, in the case of the installment required to be paid in the 12th month of the taxable year, then dividing the resulting amount by the number of months in the taxable year (3, 5, 6, 8, 9, or 11 as the case may be).
For corporations, net income shall be placed on an annualized basis by multiplying by 12 the taxable income (i) for the first 3 months of the taxable year, in the case of the installment required to be paid HB2955 Enrolled - 194 - LRB097 08285 HLH 48412 b in the 4th month, (ii) for the first 3 months or for the first 5 months of the taxable year, in the case of the installment required to be paid in the 6th month, (iii) for the first 6 months or for the first 8 months of the taxable year, in the case of the installment required to be paid in the 9th month, and (iv) for the first 9 months or for the first 11 months of the taxable year, in the case of the installment required to be paid in the 12th month of the taxable year, then dividing the resulting amount by the number of months in the taxable year (3, 5, 6, 8, 9, or 11 as the case may be).
The penalty imposed by subsection (a) shall also not be imposed on any underpayments of estimated tax due before the effective date of this amendatory Act of 1998 which underpayments are solely attributable to the change in apportionment from subsection (a) to subsection (h) of Section 304.
The penalty imposed by subsection (a) shall also not be imposed on any underpayments of estimated tax due before the effective date of this amendatory Act of 1998 which underpayments are solely attributable to the change in apportionment from subsection (a) to subsection (h) of Section HB2955 Enrolled - 195 - LRB097 08285 HLH 48412 b 304.
(e) The penalty imposed for underpayment of estimated tax by subsection (a) of this Section shall not be imposed to the extent that the Director or his or her designate determines, pursuant to Section 3-8 of the Uniform Penalty and Interest Act HB2955 Engrossed - 195 - LRB097 08285 HLH 48412 b that the penalty should not be imposed.
(e) The penalty imposed for underpayment of estimated tax by subsection (a) of this Section shall not be imposed to the extent that the Director or his or her designate determines, pursuant to Section 3-8 of the Uniform Penalty and Interest Act that the penalty should not be imposed.
(2) amounts timely paid by a partnership, Subchapter S corporation, or trust on behalf of a partner, shareholder, or beneficiary pursuant to subsection (f) of Section 502 or Section 709.5 and claimed as a payment of estimated tax shall be deemed a payment of estimated tax made on the last day of the taxable year of the partnership, Subchapter S corporation, or trust for which the income from the withholding is made was computed;
(2) amounts timely paid by a partnership, Subchapter S corporation, or trust on behalf of a partner, shareholder, or beneficiary pursuant to subsection (f) of Section 502 or Section 709.5 and claimed as a payment of estimated tax shall be deemed a payment of estimated tax made on the last HB2955 Enrolled - 196 - LRB097 08285 HLH 48412 b day of the taxable year of the partnership, Subchapter S corporation, or trust for which the income from the withholding is made was computed;
and (3) all other amounts pursuant to Article 7 shall be deemed a payment of estimated tax on the date the payment is made to the taxpayer of the amount from which the tax is HB2955 Engrossed - 196 - LRB097 08285 HLH 48412 b withheld.
and (3) all other amounts pursuant to Article 7 shall be deemed a payment of estimated tax on the date the payment is made to the taxpayer of the amount from which the tax is withheld.
In the case of any overpayment, the Department, within the applicable period of limitations for a claim for refund, may credit the amount of such overpayment, including any interest allowed thereon, against any liability in respect of the tax imposed by this Act, regardless of whether other collection remedies are closed to the Department on the part of the person who made the overpayment and shall refund any balance to such person.
In the case of any overpayment, the Department, within the applicable period of limitations for a claim for refund, may credit the amount of such overpayment, including any interest allowed thereon, against any liability HB2955 Enrolled - 197 - LRB097 08285 HLH 48412 b in respect of the tax imposed by this Act, regardless of whether other collection remedies are closed to the Department on the part of the person who made the overpayment and shall refund any balance to such person.
The Department may prescribe regulations providing for the crediting against the HB2955 Engrossed - 197 - LRB097 08285 HLH 48412 b estimated tax for any taxable year of the amount determined by the taxpayer or the Department to be an overpayment of the tax imposed by this Act for a preceding taxable year.
The Department may prescribe regulations providing for the crediting against the estimated tax for any taxable year of the amount determined by the taxpayer or the Department to be an overpayment of the tax imposed by this Act for a preceding taxable year.
If the Department has failed to approve or deny the claim before the expiration of 6 months from the date the claim was filed, the claimant may nevertheless thereafter file with the Department a written protest in such form as the Department may by regulation prescribe.
If the Department has failed to approve or deny the claim before the expiration of 6 months HB2955 Enrolled - 198 - LRB097 08285 HLH 48412 b from the date the claim was filed, the claimant may nevertheless thereafter file with the Department a written protest in such form as the Department may by regulation prescribe.
If a protest is filed, the Department shall consider the claim and, if the taxpayer has so requested, shall grant the taxpayer or the taxpayer's authorized representative a HB2955 Engrossed - 198 - LRB097 08285 HLH 48412 b hearing within 6 months after the date such request is filed.
If a protest is filed, the Department shall consider the claim and, if the taxpayer has so requested, shall grant the taxpayer or the taxpayer's authorized representative a hearing within 6 months after the date such request is filed.
(h) This amendatory Act of 1983 applies to returns and claims for refunds filed with the Department on and after July 1, 1983.
(h) This amendatory Act of 1983 applies to returns and HB2955 Enrolled - 199 - LRB097 08285 HLH 48412 b claims for refunds filed with the Department on and after July 1, 1983.
HB2955 Engrossed - 199 - LRB097 08285 HLH 48412 b (a) In general.
(a) In general.
In any case where notification of an alteration is required by Section 506(b), a claim for refund may be filed within 2 years after the date on which such notification was due (regardless of whether such notice was given), but the amount recoverable pursuant to a claim filed under this Section shall be limited to the amount of any overpayment resulting under this Act from recomputation of the taxpayer's net income, net loss, or Article 2 credits for the taxable year after giving effect to the item or items reflected in the alteration required to be reported.
In any case where notification of an alteration is required by Section 506(b), a claim for refund may be filed within 2 years after the date on which such notification was due (regardless of whether such notice was given), but the amount recoverable pursuant to a claim filed under this Section shall be limited to the amount of any overpayment resulting under this Act from HB2955 Enrolled - 200 - LRB097 08285 HLH 48412 b recomputation of the taxpayer's net income, net loss, or Article 2 credits for the taxable year after giving effect to the item or items reflected in the alteration required to be reported.
If, as the result of the payment before HB2955 Engrossed - 200 - LRB097 08285 HLH 48412 b January 1, 1974 of a federal tentative carryback adjustment, a notification of an alteration is required under Section 506(b), a claim for refund may be filed at any time before January 1, 1976, but the amount recoverable pursuant to a claim filed under this Section shall be limited to the amount of any overpayment resulting under this Act from recomputation of the taxpayer's base income for the taxable year after giving effect to the federal alteration resulting from the tentative carryback adjustment irrespective of any limitation imposed in paragraph (l) of this subsection.
If, as the result of the payment before January 1, 1974 of a federal tentative carryback adjustment, a notification of an alteration is required under Section 506(b), a claim for refund may be filed at any time before January 1, 1976, but the amount recoverable pursuant to a claim filed under this Section shall be limited to the amount of any overpayment resulting under this Act from recomputation of the taxpayer's base income for the taxable year after giving effect to the federal alteration resulting from the tentative carryback adjustment irrespective of any limitation imposed in paragraph (l) of this subsection.
In the case of a taxpayer who is a partnership, Subchapter S corporation, or trust and who enters into an agreement with the Department pursuant to this subsection on or after January 1, 2003, a claim for refund may be filed by issued to the partners, shareholders, or beneficiaries of the taxpayer at any time prior to the expiration of the period agreed upon.
In the case of a taxpayer who is a partnership, Subchapter S corporation, or trust and HB2955 Enrolled - 201 - LRB097 08285 HLH 48412 b who enters into an agreement with the Department pursuant to this subsection on or after January 1, 2003, a claim for refund may be filed by issued to the partners, shareholders, or beneficiaries of the taxpayer at any time prior to the expiration of the period agreed upon.
Any refund allowed pursuant to the claim, however, shall be limited to the amount HB2955 Engrossed - 201 - LRB097 08285 HLH 48412 b of any overpayment of tax due under this Act that results from recomputation of items of income, deduction, credits, or other amounts of the taxpayer that are taken into account by the partner, shareholder, or beneficiary in computing its liability under this Act.
Any refund allowed pursuant to the claim, however, shall be limited to the amount of any overpayment of tax due under this Act that results from recomputation of items of income, deduction, credits, or other amounts of the taxpayer that are taken into account by the partner, shareholder, or beneficiary in computing its liability under this Act.
For purposes of this section a tax return filed before the last day prescribed by law for the filing of such return (including any extensions thereof) shall be deemed to have been filed on such last day.
For purposes of this section a tax return filed before the last day prescribed by law for HB2955 Enrolled - 202 - LRB097 08285 HLH 48412 b the filing of such return (including any extensions thereof) shall be deemed to have been filed on such last day.
(f) No claim for refund or credit based on the taxpayer's taking a credit for estimated tax payments as provided by Section 601(b)(2) or for any amount paid by a taxpayer pursuant to Section 602(a) or for any amount of credit for tax withheld HB2955 Engrossed - 202 - LRB097 08285 HLH 48412 b pursuant to Article 7 may be filed unless a return was filed for the tax year not more than 3 years after the due date, as provided by Section 505, of the return which was required to be filed relative to the taxable year for which the payments were made or for which the tax was withheld.
(f) No claim for refund or credit based on the taxpayer's taking a credit for estimated tax payments as provided by Section 601(b)(2) or for any amount paid by a taxpayer pursuant to Section 602(a) or for any amount of credit for tax withheld pursuant to Article 7 may be filed unless a return was filed for the tax year not more than 3 years after the due date, as provided by Section 505, of the return which was required to be filed relative to the taxable year for which the payments were made or for which the tax was withheld.
If the claim for refund relates to an overpayment attributable to a net loss carryback as provided by Section 207, in lieu of the 3 year period of limitation prescribed in subsection (a), the period shall be that period which ends 3 years after the time prescribed by law for filing the return (including extensions thereof) for the taxable year of the net loss which results in such carryback (or, on and after August 13, 1999, with respect to a change in the carryover of an Article 2 credit to a taxable year resulting from the carryback of a Section 207 loss incurred in a taxable year beginning on or after January 1, 2000, the period shall be that period that ends 3 years after the time prescribed by law for filing the return (including extensions of that time) for that subsequent taxable year), or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later.
If the claim for refund relates to an overpayment attributable to a net loss carryback as provided by Section 207, in lieu of the 3 year period of limitation prescribed in subsection (a), the period shall be that period which ends 3 years after the time prescribed by law for filing the return (including extensions thereof) for the taxable year of the net loss which results in such carryback (or, on and after August 13, 1999, with respect to a change in the carryover of an Article 2 credit to a taxable year resulting from the carryback of a Section 207 loss incurred in a taxable year beginning on or after January 1, 2000, the period shall be that period that ends 3 years after the time prescribed by law for filing the HB2955 Enrolled - 203 - LRB097 08285 HLH 48412 b return (including extensions of that time) for that subsequent taxable year), or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later.
In the case of such a claim, the amount of the refund may exceed the portion of the tax paid within the period provided in subsection (d) to the extent of the amount of the overpayment HB2955 Engrossed - 203 - LRB097 08285 HLH 48412 b attributable to such carryback.
In the case of such a claim, the amount of the refund may exceed the portion of the tax paid within the period provided in subsection (d) to the extent of the amount of the overpayment attributable to such carryback.
On and after August 23, 2002, no claim for refund shall be allowed to the extent the refund is the result of an amount of net loss incurred in any taxable year ending prior to December 31, 2002 under Section 207 of this Act that was not reported to the Department within 3 years of the due date (including extensions) of the return for the loss year on either the original return filed by the taxpayer or on amended return or to the extent that the refund is the result of an amount of net loss incurred in any taxable year under Section 207 for which no return was filed within 3 years of the due date (including extensions) of the HB2955 Engrossed - 204 - LRB097 08285 HLH 48412 b return for the loss year.
On and after August 23, 2002, no claim for refund shall be allowed to the extent the refund is the result of an amount of net loss incurred in any taxable year ending prior to December 31, 2002 under Section 207 of this Act that was not reported to the Department HB2955 Enrolled - 204 - LRB097 08285 HLH 48412 b within 3 years of the due date (including extensions) of the return for the loss year on either the original return filed by the taxpayer or on amended return or to the extent that the refund is the result of an amount of net loss incurred in any taxable year under Section 207 for which no return was filed within 3 years of the due date (including extensions) of the return for the loss year.
If any employer, without intent to evade or defeat any tax imposed by this Act or the payment thereof, shall fail to make a return and pay a tax withheld by him at the time required by or under the provisions of this Act, such employer shall be liable for such taxes and shall pay the same together with the interest and the penalty provided by Sections 3-2 and 3-3, respectively, of the Uniform Penalty and Interest Act and such interest and penalty shall not be charged to or collected from the employee by the employer.
If any employer, without intent to evade or defeat any tax imposed by this Act or the payment thereof, shall fail to make a return and pay a tax withheld by him at the time required by or under the provisions of this Act, such employer shall be liable for such taxes and shall pay the same together with the interest HB2955 Enrolled - 205 - LRB097 08285 HLH 48412 b and the penalty provided by Sections 3-2 and 3-3, respectively, of the Uniform Penalty and Interest Act and such interest and penalty shall not be charged to or collected from the employee by the employer.
Any person required to collect, truthfully account for, and pay over the HB2955 Engrossed - 205 - LRB097 08285 HLH 48412 b tax imposed by this Act who willfully fails to collect such tax or truthfully account for and pay over such tax or willfully attempts in any manner to evade or defeat the tax or the payment thereof, shall, in addition to other penalties provided by law, be liable for the penalty imposed by Section 3-7 of the Uniform Penalty and Interest Act.
Any person required to collect, truthfully account for, and pay over the tax imposed by this Act who willfully fails to collect such tax or truthfully account for and pay over such tax or willfully attempts in any manner to evade or defeat the tax or the payment thereof, shall, in addition to other penalties provided by law, be liable for the penalty imposed by Section 3-7 of the Uniform Penalty and Interest Act.
(3) Procedure for assessing the penalty for failure to file withholding returns or annual transmittal forms for wage and tax statements.
(3) Procedure for assessing the penalty for failure to HB2955 Enrolled - 206 - LRB097 08285 HLH 48412 b file withholding returns or annual transmittal forms for wage and tax statements.
If taxpayer does not file a timely protest, the notice of deficiency HB2955 Engrossed - 206 - LRB097 08285 HLH 48412 b will constitute an assessment pursuant to subsection (c) of Section 904.
If taxpayer does not file a timely protest, the notice of deficiency will constitute an assessment pursuant to subsection (c) of Section 904.
(a) If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the State of Illinois upon all property and rights to property, whether real or personal, belonging to such person.
(a) If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any HB2955 Enrolled - 207 - LRB097 08285 HLH 48412 b interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the State of Illinois upon all property and rights to property, whether real or personal, belonging to such person.
(b) Unless another date is specifically fixed by law, the HB2955 Engrossed - 207 - LRB097 08285 HLH 48412 b lien imposed by subsection (a) of this Section shall arise at the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or becomes unenforceable by reason of lapse of time.
(b) Unless another date is specifically fixed by law, the lien imposed by subsection (a) of this Section shall arise at the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or becomes unenforceable by reason of lapse of time.
Where the lien results from the filing of a return without payment of the tax or penalty shown therein to be due, the lien shall terminate unless a notice of lien is filed within 3 years from the date such return was filed with the Department.
Where the lien results from the filing of a return without payment of the tax or penalty shown therein to be due, the lien shall terminate unless a notice of lien is filed within 3 years from the date HB2955 Enrolled - 208 - LRB097 08285 HLH 48412 b such return was filed with the Department.
The time limitation period on the Department's right to file a notice of lien shall not run during any period of time in which the order of any HB2955 Engrossed - 208 - LRB097 08285 HLH 48412 b court has the effect of enjoining or restraining the Department from filing such notice of lien.
The time limitation period on the Department's right to file a notice of lien shall not run during any period of time in which the order of any court has the effect of enjoining or restraining the Department from filing such notice of lien.
The Department of Revenue shall establish procedures to inform taxpayers of the status of their refunds and shall provide a response to respond in writing to each inquiry concerning refunds under this Act within 10 days after receiving the inquiry.
The Department of Revenue shall establish procedures to inform taxpayers of the status of their refunds and shall provide a HB2955 Enrolled - 209 - LRB097 08285 HLH 48412 b response to respond in writing to each inquiry concerning refunds under this Act within 10 days after receiving the inquiry.
HB2955 Engrossed - 209 - LRB097 08285 HLH 48412 b (Source:
(Source:
(i) that is considered a real estate investment trust for the taxable year under Section 856 of the Internal Revenue Code;
HB2955 Enrolled - 210 - LRB097 08285 HLH 48412 b (i) that is considered a real estate investment trust for the taxable year under Section 856 of the Internal Revenue Code;
and HB2955 Engrossed - 210 - LRB097 08285 HLH 48412 b (iii) of which more than 50% of the voting power or value of the beneficial interest or shares, at any time during the last half of the taxable year, is owned or controlled, directly, indirectly, or constructively, by a single corporation.
and (iii) of which more than 50% of the voting power or value of the beneficial interest or shares, at any time during the last half of the taxable year, is owned or controlled, directly, indirectly, or constructively, by a single corporation.
(b) a person who is exempt from taxation under Section 501 of the Internal Revenue Code, and who is not required to treat income received from the real estate investment trust as unrelated business taxable income under Section 512 of the Internal Revenue Code;
(b) a person who is exempt from taxation under Section 501 of the Internal Revenue Code, and who is not required to treat income received from the real estate investment trust as unrelated business taxable income under HB2955 Enrolled - 211 - LRB097 08285 HLH 48412 b Section 512 of the Internal Revenue Code;
(c) a listed Australian property trust, if no more than 50% of the voting power or value of the beneficial interest or shares of that trust, at any time during the last half of the taxable year, is owned or controlled, directly HB2955 Engrossed - 211 - LRB097 08285 HLH 48412 b or indirectly, by a single person;
(c) a listed Australian property trust, if no more than 50% of the voting power or value of the beneficial interest or shares of that trust, at any time during the last half of the taxable year, is owned or controlled, directly or indirectly, by a single person;
(2) the entity is not subject to tax on amounts that are distributed to its beneficial owners or is exempt from entity-level taxation;
HB2955 Enrolled - 212 - LRB097 08285 HLH 48412 b (2) the entity is not subject to tax on amounts that are distributed to its beneficial owners or is exempt from entity-level taxation;
(3) the entity distributes at least 85% of its taxable income (as computed in HB2955 Engrossed - 212 - LRB097 08285 HLH 48412 b the jurisdiction in which it is organized) to the holders of its shares or certificates of beneficial interest on an annual basis;
(3) the entity distributes at least 85% of its taxable income (as computed in the jurisdiction in which it is organized) to the holders of its shares or certificates of beneficial interest on an annual basis;
or (ii) during its first taxable year for which it elects to be treated as a real estate investment trust under Section 856(c)(1) of the Internal Revenue Code, a real estate investment trust the certificates of beneficial interest or shares of which are not regularly traded on an established securities market, but only if the certificates of beneficial interest or shares of the real estate investment trust are regularly traded on an established securities market prior to the earlier of the due date (including extensions) for filing HB2955 Engrossed - 213 - LRB097 08285 HLH 48412 b its return under this Act for that first taxable year or the date it actually files that return.
or (ii) during its first taxable year for which it elects to be treated as a real estate investment trust under Section 856(c)(1) of the Internal Revenue Code, a real estate investment trust the certificates of beneficial interest or shares of HB2955 Enrolled - 213 - LRB097 08285 HLH 48412 b which are not regularly traded on an established securities market, but only if the certificates of beneficial interest or shares of the real estate investment trust are regularly traded on an established securities market prior to the earlier of the due date (including extensions) for filing its return under this Act for that first taxable year or the date it actually files that return.
(5) Department.
HB2955 Enrolled - 214 - LRB097 08285 HLH 48412 b (5) Department.
The term "fiduciary" means a guardian, trustee, executor, administrator, receiver, or any person HB2955 Engrossed - 214 - LRB097 08285 HLH 48412 b acting in any fiduciary capacity for any person.
The term "fiduciary" means a guardian, trustee, executor, administrator, receiver, or any person acting in any fiduciary capacity for any person.
(B) For purposes of subparagraph (A) of this paragraph, the term "bank" includes (i) any entity that is regulated by the Comptroller of the Currency under the National Bank Act, or by the Federal Reserve Board, or by the Federal Deposit Insurance Corporation and (ii) any federally or State chartered bank operating as a credit card bank.
(B) For purposes of subparagraph (A) of this paragraph, the term "bank" includes (i) any entity that HB2955 Enrolled - 215 - LRB097 08285 HLH 48412 b is regulated by the Comptroller of the Currency under the National Bank Act, or by the Federal Reserve Board, or by the Federal Deposit Insurance Corporation and (ii) any federally or State chartered bank operating as a credit card bank.
(C) For purposes of subparagraph (A) of this HB2955 Engrossed - 215 - LRB097 08285 HLH 48412 b paragraph, the term "sales finance company" has the meaning provided in the following item (i) or (ii):
(C) For purposes of subparagraph (A) of this paragraph, the term "sales finance company" has the meaning provided in the following item (i) or (ii):
(b) an installment, charge, credit, or similar contract or agreement arising from the sale of tangible personal property or services in a transaction involving a deferred payment price payable in one or more installments subsequent to the sale;
(b) an installment, charge, credit, or similar contract or agreement arising from the sale of tangible personal property or services in a transaction involving a deferred payment HB2955 Enrolled - 216 - LRB097 08285 HLH 48412 b price payable in one or more installments subsequent to the sale;
A customer receivable need not provide for HB2955 Engrossed - 216 - LRB097 08285 HLH 48412 b payment of interest on deferred payments.
A customer receivable need not provide for payment of interest on deferred payments.
A "qualifying loan" is a loan made to a member of the corporation's affiliated group that originates customer receivables (within the meaning of item (i)) or to whom customer receivables originated by a member of the affiliated group have been transferred, to the extent the average outstanding balance of loans from that corporation to members of its affiliated group during the taxable year do not HB2955 Engrossed - 217 - LRB097 08285 HLH 48412 b exceed the limitation amount for that corporation.
A "qualifying loan" is a loan made to a member of the corporation's affiliated group that originates customer receivables (within the HB2955 Enrolled - 217 - LRB097 08285 HLH 48412 b meaning of item (i)) or to whom customer receivables originated by a member of the affiliated group have been transferred, to the extent the average outstanding balance of loans from that corporation to members of its affiliated group during the taxable year do not exceed the limitation amount for that corporation.
(c) the total of all shareholder's equity (including, without limitation, paid-in capital on common and preferred stock and retained earnings) of the corporation plus the total of all of its loans, advances, and other obligations payable or owed to members of its affiliated group may not exceed 20% of the total assets of the corporation at any time during the tax year;
(c) the total of all shareholder's equity (including, without limitation, paid-in capital on common and preferred stock and HB2955 Enrolled - 218 - LRB097 08285 HLH 48412 b retained earnings) of the corporation plus the total of all of its loans, advances, and other obligations payable or owed to members of its affiliated group may not exceed 20% of the total assets of the corporation at any time during the tax year;
and HB2955 Engrossed - 218 - LRB097 08285 HLH 48412 b (d) more than 50% of all interest-bearing obligations of the affiliated group payable to persons outside the group determined in accordance with generally accepted accounting principles must be obligations of the corporation.
and (d) more than 50% of all interest-bearing obligations of the affiliated group payable to persons outside the group determined in accordance with generally accepted accounting principles must be obligations of the corporation.
A taxpayer that is a "financial organization" that engages in any transaction with an affiliate shall be a "financial organization" for all purposes of this Act.
A taxpayer that is a "financial organization" that engages in any transaction with an affiliate shall be a "financial organization" for all HB2955 Enrolled - 219 - LRB097 08285 HLH 48412 b purposes of this Act.
(E) For all tax years beginning on or before December 31, 1996, a taxpayer that falls within the definition of a "financial organization" under subparagraphs (B) or (C) of this paragraph, but who does not fall within the definition of a "financial HB2955 Engrossed - 219 - LRB097 08285 HLH 48412 b organization" under the Proposed Regulations issued by the Department of Revenue on July 19, 1996, may irrevocably elect to apply the Proposed Regulations for all of those years as though the Proposed Regulations had been lawfully promulgated, adopted, and in effect for all of those years.
(E) For all tax years beginning on or before December 31, 1996, a taxpayer that falls within the definition of a "financial organization" under subparagraphs (B) or (C) of this paragraph, but who does not fall within the definition of a "financial organization" under the Proposed Regulations issued by the Department of Revenue on July 19, 1996, may irrevocably elect to apply the Proposed Regulations for all of those years as though the Proposed Regulations had been lawfully promulgated, adopted, and in effect for all of those years.
For purposes of this subsection, a finance lease shall be treated as a loan or other extension of credit, rather than as a lease, regardless of how the transaction is characterized for any other purpose, including the purposes of any regulatory agency to which the lessor is subject.
For purposes of this subsection, a finance lease shall be treated as a loan or other extension of credit, rather than as a lease, HB2955 Enrolled - 220 - LRB097 08285 HLH 48412 b regardless of how the transaction is characterized for any other purpose, including the purposes of any regulatory agency to which the lessor is subject.
A finance lease is any transaction in the form of a lease in which the lessee is treated as the owner of the leased asset entitled to any deduction for HB2955 Engrossed - 220 - LRB097 08285 HLH 48412 b depreciation allowed under Section 167 of the Internal Revenue Code.
A finance lease is any transaction in the form of a lease in which the lessee is treated as the owner of the leased asset entitled to any deduction for depreciation allowed under Section 167 of the Internal Revenue Code.
(A) The term "investment partnership" means any entity that is treated as a partnership for federal income tax purposes that meets the following requirements:
(A) The term "investment partnership" means any entity that is treated as a partnership for federal HB2955 Enrolled - 221 - LRB097 08285 HLH 48412 b income tax purposes that meets the following requirements:
(i) no less than 90% of the partnership's cost of its total assets consists of qualifying investment securities, deposits at banks or other financial institutions, and office space and HB2955 Engrossed - 221 - LRB097 08285 HLH 48412 b equipment reasonably necessary to carry on its activities as an investment partnership;
(i) no less than 90% of the partnership's cost of its total assets consists of qualifying investment securities, deposits at banks or other financial institutions, and office space and equipment reasonably necessary to carry on its activities as an investment partnership;
(iv) mortgage or asset-backed securities secured by federal, state, or local governmental agencies;
(iv) mortgage or asset-backed securities HB2955 Enrolled - 222 - LRB097 08285 HLH 48412 b secured by federal, state, or local governmental agencies;
(vi) foreign currency exchange contracts and forward and futures contracts on foreign HB2955 Engrossed - 222 - LRB097 08285 HLH 48412 b currencies;
(vi) foreign currency exchange contracts and forward and futures contracts on foreign currencies;
and (xii) a partnership interest in another partnership that is an investment partnership.
and (xii) a partnership interest in another HB2955 Enrolled - 223 - LRB097 08285 HLH 48412 b partnership that is an investment partnership.
(A) arithmetic errors or incorrect computations on HB2955 Engrossed - 223 - LRB097 08285 HLH 48412 b the return or supporting schedules;
(A) arithmetic errors or incorrect computations on the return or supporting schedules;
The term "partnership" includes a syndicate, group, pool, joint venture or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this Act, a trust or estate or a corporation;
The term "partnership" includes a syndicate, group, pool, joint venture or other HB2955 Enrolled - 224 - LRB097 08285 HLH 48412 b unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this Act, a trust or estate or a corporation;
HB2955 Engrossed - 224 - LRB097 08285 HLH 48412 b The term "partnership" includes any entity, including a limited liability company formed under the Illinois Limited Liability Company Act, classified as a partnership for federal income tax purposes.
The term "partnership" includes any entity, including a limited liability company formed under the Illinois Limited Liability Company Act, classified as a partnership for federal income tax purposes.
The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, firm, company, corporation, limited liability company, or fiduciary.
The term "person" shall be construed to mean and include an individual, a trust, estate, HB2955 Enrolled - 225 - LRB097 08285 HLH 48412 b partnership, association, firm, company, corporation, limited liability company, or fiduciary.
For purposes of Section 1301 and 1302 of this Act, a "person" means (i) an individual, (ii) a corporation, (iii) an officer, agent, or employee of a corporation, (iv) a member, agent or employee of a partnership, or (v) a member, manager, employee, HB2955 Engrossed - 225 - LRB097 08285 HLH 48412 b officer, director, or agent of a limited liability company who in such capacity commits an offense specified in Section 1301 and 1302.
For purposes of Section 1301 and 1302 of this Act, a "person" means (i) an individual, (ii) a corporation, (iii) an officer, agent, or employee of a corporation, (iv) a member, agent or employee of a partnership, or (v) a member, manager, employee, officer, director, or agent of a limited liability company who in such capacity commits an offense specified in Section 1301 and 1302.
and (D) An irrevocable trust, the grantor of which was domiciled in this State at the time such trust became irrevocable.
and (D) An irrevocable trust, the grantor of which was HB2955 Enrolled - 226 - LRB097 08285 HLH 48412 b domiciled in this State at the time such trust became irrevocable.
The term "sales" means all gross receipts HB2955 Engrossed - 226 - LRB097 08285 HLH 48412 b of the taxpayer not allocated under Sections 301, 302 and 303.
The term "sales" means all gross receipts of the taxpayer not allocated under Sections 301, 302 and 303.
"Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of this Act, the period for which such return is made.
"Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of this Act, the period for which such return is HB2955 Enrolled - 227 - LRB097 08285 HLH 48412 b made.
The term international banking facility shall have the same meaning as is set forth in the Illinois Banking Act or as is set HB2955 Engrossed - 227 - LRB097 08285 HLH 48412 b forth in the laws of the United States or regulations of the Board of Governors of the Federal Reserve System.
The term international banking facility shall have the same meaning as is set forth in the Illinois Banking Act or as is set forth in the laws of the United States or regulations of the Board of Governors of the Federal Reserve System.
or (iv) prepare claims for refunds for a taxpayer in response to any notice of deficiency issued to that taxpayer or in response to any waiver of restriction after the commencement of an audit of that taxpayer or of another taxpayer if a determination in the audit of the other taxpayer HB2955 Engrossed - 228 - LRB097 08285 HLH 48412 b directly or indirectly affects the tax liability of the taxpayer whose claims he or she is preparing.
or HB2955 Enrolled - 228 - LRB097 08285 HLH 48412 b (iv) prepare claims for refunds for a taxpayer in response to any notice of deficiency issued to that taxpayer or in response to any waiver of restriction after the commencement of an audit of that taxpayer or of another taxpayer if a determination in the audit of the other taxpayer directly or indirectly affects the tax liability of the taxpayer whose claims he or she is preparing.
for purposes of this paragraph and clause (a)(3)(B)(ii) of Section 304, business activity within the United States shall be measured by means of the factors ordinarily applicable under subsections (a), (b), (c), (d), or (h) of Section 304 except that, in the case of members ordinarily required to apportion business income by means of the 3 factor formula of property, payroll and sales specified in subsection (a) of Section 304, including the formula as weighted in subsection (h) of Section 304, such members shall not use the sales factor in the computation and the results of the property and payroll factor computations of subsection (a) of Section 304 shall be divided by 2 (by one if either the property or payroll factor has a denominator of zero).
for purposes of this paragraph and clause (a)(3)(B)(ii) of Section 304, business activity within the United States shall be measured by means of the factors ordinarily applicable under subsections (a), (b), (c), (d), or (h) of Section 304 except that, in the case of members ordinarily required to apportion business income by means of the 3 factor formula of property, payroll and sales specified in subsection (a) of Section 304, including the formula as weighted in subsection (h) of Section HB2955 Enrolled - 229 - LRB097 08285 HLH 48412 b 304, such members shall not use the sales factor in the computation and the results of the property and payroll factor computations of subsection (a) of Section 304 shall be divided by 2 (by one if either the property or payroll factor has a denominator of zero).
The computation required by the preceding sentence shall, HB2955 Engrossed - 229 - LRB097 08285 HLH 48412 b in each case, involve the division of the member's property, payroll, or revenue miles in the United States, insurance premiums on property or risk in the United States, or financial organization business income from sources within the United States, as the case may be, by the respective worldwide figures for such items.
The computation required by the preceding sentence shall, in each case, involve the division of the member's property, payroll, or revenue miles in the United States, insurance premiums on property or risk in the United States, or financial organization business income from sources within the United States, as the case may be, by the respective worldwide figures for such items.
and, in either instance, the members are functionally integrated through the exercise of strong centralized management (where, for example, authority over such matters as purchasing, financing, tax compliance, product line, personnel, marketing and capital investment is not left to each member).
and, in either instance, the members are functionally integrated HB2955 Enrolled - 230 - LRB097 08285 HLH 48412 b through the exercise of strong centralized management (where, for example, authority over such matters as purchasing, financing, tax compliance, product line, personnel, marketing and capital investment is not left to each member).
(B) In no event, shall however, will any unitary HB2955 Engrossed - 230 - LRB097 08285 HLH 48412 b business group include members which are ordinarily required to apportion business income under different subsections of Section 304 except that for tax years ending on or after December 31, 1987 this prohibition shall not apply to a holding company that would otherwise be a member of a unitary business group with taxpayers that apportion business income under any of subsections (b), (c), or (d) of Section 304 unitary business group composed of one or more taxpayers all of which apportion business income pursuant to subsection (b) of Section 304, or all of which apportion business income pursuant to subsection (d) of Section 304, and a holding company of such single-factor taxpayers (see definition of "financial organization" for rule regarding holding companies of financial organizations).
(B) In no event, shall however, will any unitary business group include members which are ordinarily required to apportion business income under different subsections of Section 304 except that for tax years ending on or after December 31, 1987 this prohibition shall not apply to a holding company that would otherwise be a member of a unitary business group with taxpayers that apportion business income under any of subsections (b), (c), or (d) of Section 304 unitary business group composed of one or more taxpayers all of which apportion business income pursuant to subsection (b) of Section 304, or all of which apportion business income pursuant to subsection (d) of Section 304, and a holding company of such single-factor taxpayers (see definition of "financial organization" for rule regarding holding companies of financial organizations).
If a unitary business group would, but for the preceding sentence, include members that are ordinarily required to apportion business income under different subsections of Section 304, then for each subsection of Section 304 for which there are two or more members, there shall be a separate unitary business group composed of such members.
If a unitary business group would, but for the preceding sentence, include members that are ordinarily required to apportion business income under different subsections of Section 304, then for each subsection of Section 304 for which there are two or HB2955 Enrolled - 231 - LRB097 08285 HLH 48412 b more members, there shall be a separate unitary business group composed of such members.
For purposes of the preceding two sentences, a member is "ordinarily required to apportion business income" under a particular subsection of Section 304 if it would be required to use the apportionment method prescribed by HB2955 Engrossed - 231 - LRB097 08285 HLH 48412 b such subsection except for the fact that it derives business income solely from Illinois.
For purposes of the preceding two sentences, a member is "ordinarily required to apportion business income" under a particular subsection of Section 304 if it would be required to use the apportionment method prescribed by such subsection except for the fact that it derives business income solely from Illinois.
that, during the period that includes the taxable year and the 2 immediately preceding taxable years or, if the corporation was formed during the current or immediately preceding taxable year, the taxable years in which the corporation has been in existence, derived substantially all its gross HB2955 Engrossed - 232 - LRB097 08285 HLH 48412 b income from dividends, interest, rents, royalties, fees or other charges received from controlled taxpayers for the provision of services, and gains on the sale or other disposition of interests in controlled taxpayers or in property leased or licensed to controlled taxpayers or used by the taxpayer in providing services to controlled taxpayers;
that, during HB2955 Enrolled - 232 - LRB097 08285 HLH 48412 b the period that includes the taxable year and the 2 immediately preceding taxable years or, if the corporation was formed during the current or immediately preceding taxable year, the taxable years in which the corporation has been in existence, derived substantially all its gross income from dividends, interest, rents, royalties, fees or other charges received from controlled taxpayers for the provision of services, and gains on the sale or other disposition of interests in controlled taxpayers or in property leased or licensed to controlled taxpayers or used by the taxpayer in providing services to controlled taxpayers;
(ii) The income of a holding company which is a member of more than one unitary business group shall be included in each unitary business group of which it is a member on a pro rata basis, by including in each unitary business group that portion of the base income of the holding company that bears the same proportion to the total base income of the holding company as the gross receipts of the unitary business group bears to the combined gross receipts of all unitary business groups (in both cases without regard to the holding company) or on any other reasonable basis, consistently HB2955 Engrossed - 233 - LRB097 08285 HLH 48412 b applied.
(ii) The income of a holding company which is a member of more than one unitary business group shall be included in each unitary business group of which it is a member on a pro rata basis, by including in each unitary business group that portion of the base income of the holding company HB2955 Enrolled - 233 - LRB097 08285 HLH 48412 b that bears the same proportion to the total base income of the holding company as the gross receipts of the unitary business group bears to the combined gross receipts of all unitary business groups (in both cases without regard to the holding company) or on any other reasonable basis, consistently applied.
(D) If including the base income and factors of a holding company in more than one unitary business group under subparagraph (C) does not fairly reflect the degree of integration between the holding company and one or more of the unitary business groups, the dependence of the holding company and one or more of the unitary business groups upon each other, or the contributions between the holding company and one or more of the unitary business groups, the holding company may petition the Director, under the procedures provided under Section 304(f), for permission to include all base income and factors of the holding company only with members of a unitary HB2955 Engrossed - 234 - LRB097 08285 HLH 48412 b business group apportioning their business income under one subsection of subsections (a), (b), (c), or (d) of Section 304.
(D) If including the base income and factors of a holding company in more than one unitary business group under subparagraph (C) does not fairly reflect the degree of integration between the holding company and one or more of the unitary business groups, the dependence of the holding company and one or more of the unitary business groups upon each other, or the HB2955 Enrolled - 234 - LRB097 08285 HLH 48412 b contributions between the holding company and one or more of the unitary business groups, the holding company may petition the Director, under the procedures provided under Section 304(f), for permission to include all base income and factors of the holding company only with members of a unitary business group apportioning their business income under one subsection of subsections (a), (b), (c), or (d) of Section 304.
The prohibition against membership in a unitary business group for taxpayers ordinarily required to apportion income under different subsections of Section 304 does not apply to taxpayers required to apportion income under subsection (a) and subsection (h) of Section 304.
The prohibition HB2955 Enrolled - 235 - LRB097 08285 HLH 48412 b against membership in a unitary business group for taxpayers ordinarily required to apportion income under different subsections of Section 304 does not apply to taxpayers required to apportion income under subsection (a) and subsection (h) of Section 304.
The provisions of this amendatory Act of 1998 apply to tax HB2955 Engrossed - 235 - LRB097 08285 HLH 48412 b years ending on or after December 31, 1998.
The provisions of this amendatory Act of 1998 apply to tax years ending on or after December 31, 1998.
(A) Words importing the singular include and apply to several persons, parties or things;
(A) Words importing the singular include and apply HB2955 Enrolled - 236 - LRB097 08285 HLH 48412 b to several persons, parties or things;
(2) "Company" or "association" as including successors HB2955 Engrossed - 236 - LRB097 08285 HLH 48412 b and assigns.
(2) "Company" or "association" as including successors and assigns.
HB2955 Engrossed - 237 - LRB097 08285 HLH 48412 b INDEX Statutes amended in order of appearance 35 ILCS 5/203 from Ch.
HB2955 Enrolled - 237 - LRB097 08285 HLH 48412 b INDEX Statutes amended in order of appearance 35 ILCS 5/203 from Ch.
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Action History

  1. Public Act . . . . . . . . . 97-0507

  2. Effective Date August 23, 2011

  3. Governor Approved

  4. Sent to the Governor

  5. Passed Both Houses

  6. Senate Floor Amendment No. 2 House Concurs 089-014-000

  7. Senate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Rules Committee; 003-001-000

  8. Senate Floor Amendment No. 2 Motion to Concur Referred to Rules Committee

  9. Senate Floor Amendment No. 2 Motion Filed Concur Rep. Barbara Flynn Currie

  10. Placed on Calendar Order of Concurrence Senate Amendment(s) 2

  11. Arrived in House

  12. Senate Committee Amendment No. 1 Tabled Pursuant to Rule 5-4(a)

  13. Third Reading - Passed; 043-000-000

  14. Placed on Calendar Order of 3rd Reading May 20, 2011

  15. Senate Floor Amendment No. 2 Adopted; Hutchinson

  16. Recalled to Second Reading

  17. Senate Floor Amendment No. 2 Recommend Do Adopt Revenue; 006-000-000

  18. Senate Floor Amendment No. 2 Assignments Refers to Revenue

  19. Senate Floor Amendment No. 2 Referred to Assignments

  20. Senate Floor Amendment No. 2 Filed with Secretary by Sen. Toi W. Hutchinson

  21. Placed on Calendar Order of 3rd Reading May 16, 2011

  22. Second Reading

  23. Placed on Calendar Order of 2nd Reading May 12, 2011

  24. Do Pass Revenue; 010-000-000

  25. Senate Committee Amendment No. 1 Referred to Assignments

  26. Senate Committee Amendment No. 1 Filed with Secretary by Sen. Toi W. Hutchinson

  27. Assigned to Revenue

  28. Referred to Assignments

  29. First Reading

  30. Chief Senate Sponsor Sen. Toi W. Hutchinson

  31. Placed on Calendar Order of First Reading April 15, 2011

  32. Arrive in Senate

  33. Third Reading - Short Debate - Passed 082-034-000

  34. Placed on Calendar Order of 3rd Reading - Short Debate

  35. House Floor Amendment No. 1 Adopted by Voice Vote

  36. Recalled to Second Reading - Short Debate

  37. House Floor Amendment No. 1 Recommends Be Adopted Rules Committee; 004-000-000

  38. House Floor Amendment No. 1 Referred to Rules Committee

  39. House Floor Amendment No. 1 Filed with Clerk by Rep. Barbara Flynn Currie

  40. Placed on Calendar Order of 3rd Reading - Short Debate

  41. Second Reading - Short Debate

  42. Placed on Calendar 2nd Reading - Short Debate

  43. Do Pass / Short Debate Revenue & Finance Committee; 009-000-000

  44. Remains in Revenue & Finance Committee

  45. Recommends Do Pass Subcommittee/ Revenue & Finance Committee; 003-000-000

  46. Assigned to Revenue & Finance Committee

  47. Referred to Rules Committee

  48. First Reading

  49. Filed with the Clerk by Rep. Barbara Flynn Currie

Sponsors

  • Barbara Flynn Currie · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

0 sponsors · 1 co-sponsors · 182 not signed on · 6 voted No

Sponsors (0)

None.

Co-sponsors (1)

  • Barbara Flynn Currie

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Concurrence, Amendment 2

Passed 89 Yea · 14 Nay · 15 Other
Party YeaNayPresentNot Voting
Democrat 13100
Unaffiliated 7211015
Republican 4200
Total 8914015
% of votes cast 75%12%0%13%
How each member voted (118)
Member Party Vote
Brauer — Yea
Brown — Not Voting
McAsey — Yea
Golar — Yea
Jackson — Yea
Jakobsson — Yea
Jefferson — Yea
Kay — Nay
Mathias — Yea
Reitz — Yea
McAuliffe — Yea
McCarthy — Yea
Lyons — Yea
Mell — Yea
Moffitt — Yea
Mulligan — Yea
Riley — Yea
Senger — Yea
Soto — Yea
Thapedi — Yea
Bradley — Yea
McGuire — Yea
Brady — Yea
Mitchell, Bill — Yea
Mitchell, Jerry — Yea
Burke, Daniel — Yea
Burke, Kelly — Yea
Sullivan — Yea
Carli — Yea
Dugan — Yea
Dunkin — Yea
Durkin — Yea
Eddy — Yea
Farnham — Yea
Flowers — Yea
Fortner — Yea
Franks — Yea
Gordon — Yea
Lang — Yea
Hernandez — Yea
Leitch — Nay
Howard — Yea
Madigan — Yea
Watson — Yea
Morthland — Nay
Williams — Yea
Nekritz — Yea
Nybo — Nay
Davis, Monique — Yea
Phelps — Yea
Harris, David — Nay
Pihos — Not Voting
Sommer — Nay
Tryon — Not Voting
Turner — Yea
Unes — Nay
Verschoore — Yea
Jones — Not Voting
Harris, Greg — Not Voting
Winters — Yea
Yarbrough — Not Voting
Zalewski — Not Voting
Cavaletto — Nay
Coladipietro — Not Voting
Cole — Yea
Colvin — Yea
Connelly — Yea
Cross — Not Voting
Currie — Yea
D'Amico — Yea
Hatcher — Yea
Hays — Nay
Holbrook — Yea
Kosel — Yea
Osmond — Yea
Poe — Yea
Pritchard — Yea
Ramey — Not Voting
Reboletti — Not Voting
Reis — Nay
Roth — Not Voting
Sacia — Yea
Saviano — Yea
Schmitz — Not Voting
Sente — Yea
Acevedo — Yea
Arroyo — Yea
Barickman — Not Voting
Beaubien — Yea
Beiser — Yea
Bellock — Yea
Berrios — Yea
Biss — Yea
Mautino — Yea
Bost — Nay
May — Yea
Chapa LaVia — Yea
Du Buclet — Not Voting
Anthony DeLuca Democrat Yea
Bill Cunningham Democrat Yea
Camille Y. Lilly Democrat Yea
Fred Crespo Democrat Yea
Julie A. Morrison Democrat Nay
Kelly M. Cassidy Democrat Yea
La Shawn K. Ford Democrat Yea
Michelle Mussman Democrat Yea
Nicholas K. Smith Democrat Yea
Rita Mayfield Democrat Yea
Robert "Bob" Rita Democrat Yea
Robyn Gabel Democrat Yea
Sara Feigenholtz Democrat Yea
William "Will" Davis Democrat Yea
Brad Stephens Republican Nay
Chapin Rose Republican Nay
Jil Tracy Republican Yea
Joe C. Sosnowski Republican Yea
Norine K. Hammond Republican Yea
Wayne A. Rosenthal Republican Yea

Third Reading

Passed 43 Yea · 0 Nay · 16 Other
Party YeaNayPresentNot Voting
Unaffiliated 330013
Democrat 7003
Republican 3000
Total 430016
% of votes cast 73%0%0%27%
How each member voted (59)
Member Party Vote
Haine — Yea
Kotowski — Yea
LaHood — Yea
Lauzen — Not Voting
Luechtefeld — Not Voting
Johnson, C. — Yea
Johnson, T. — Yea
Sullivan — Yea
Jones, J. — Yea
McCann — Yea
Cullerton — Yea
McCarter — Not Voting
Meeks — Not Voting
Brady — Not Voting
Jacobs — Not Voting
Millner — Yea
Mulroe — Yea
Muñoz — Yea
Noland — Yea
Radogno — Yea
Schoenberg — Yea
Silverstein — Not Voting
Steans — Yea
Clayborne — Yea
Crotty — Yea
Cultra — Yea
Dillard — Not Voting
Duffy — Not Voting
Forby — Yea
Frerichs — Yea
Garrett — Yea
Hutchinson — Yea
Trotter — Yea
Wilhelmi — Yea
Pankau — Not Voting
Raoul — Yea
Righter — Yea
Sandack — Not Voting
Sandoval — Yea
Landek — Yea
Link — Yea
Maloney — Yea
Althoff — Yea
Martinez — Not Voting
Bivins — Not Voting
Bomke — Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Not Voting
Eva-Dina Delgado Democrat Yea
Kimberly A. Lightford Democrat Not Voting
Lakesia Collins Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Not Voting
Linda Holmes Democrat Yea
Mattie Hunter Democrat Yea
Dave Syverson Republican Yea
Kevin Schmidt Republican Yea
Sue Rezin Republican Yea

Third Reading

Passed 82 Yea · 34 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 692802
Republican 1500
Democrat 12100
Total 823402
% of votes cast 69%29%0%2%
How each member voted (118)
Member Party Vote
Brauer — Nay
Brown — Nay
Burns — Yea
Cole — Nay
Connelly — Nay
McAsey — Yea
Moffitt — Yea
Fortner — Yea
Mulligan — Not Voting
Golar — Yea
Jackson — Yea
Jakobsson — Yea
Jefferson — Yea
May — Yea
Reitz — Yea
Lyons — Yea
Dugan — Yea
Dunkin — Yea
Durkin — Yea
Eddy — Yea
Farnham — Yea
Lang — Yea
Madigan — Yea
McAuliffe — Yea
McCarthy — Yea
Mell — Yea
McGuire — Yea
Mendoza — Yea
Bradley — Yea
Nekritz — Yea
Osterman — Yea
Phelps — Yea
Burke, Daniel — Yea
Harris, David — Yea
Burke, Kelly — Yea
Harris, Greg — Yea
Senger — Yea
Sente — Yea
Hernandez — Yea
Soto — Yea
Sullivan — Nay
Watson — Nay
Morthland — Nay
Nybo — Nay
Ramey — Nay
Unes — Nay
Cavaletto — Nay
Coladipietro — Nay
Hatcher — Nay
Hays — Nay
Kay — Nay
Kosel — Nay
Howard — Yea
Thapedi — Yea
Tryon — Yea
Turner — Yea
Williams — Yea
Jones — Yea
Verschoore — Yea
Winters — Yea
Yarbrough — Yea
Davis, Monique — Yea
Zalewski — Yea
Brady — Nay
Mitchell, Bill — Nay
Mitchell, Jerry — Nay
Colvin — Yea
Cross — Yea
Currie — Yea
D'Amico — Yea
Flowers — Yea
Franks — Yea
Gordon — Yea
Holbrook — Yea
Osmond — Yea
Pihos — Yea
Poe — Yea
Pritchard — Nay
Reboletti — Nay
Reis — Nay
Riley — Yea
Roth — Nay
Sacia — Nay
Saviano — Yea
Schmitz — Yea
Sommer — Nay
Leitch — Nay
Acevedo — Yea
Arroyo — Yea
Barickman — Nay
Beaubien — Not Voting
Beiser — Yea
Bellock — Yea
Mathias — Yea
Berrios — Yea
Biss — Yea
Mautino — Yea
Bost — Nay
Chapa LaVia — Yea
Anthony DeLuca Democrat Yea
Bill Cunningham Democrat Yea
Camille Y. Lilly Democrat Yea
Fred Crespo Democrat Yea
Julie A. Morrison Democrat Nay
La Shawn K. Ford Democrat Yea
Michelle Mussman Democrat Yea
Nicholas K. Smith Democrat Yea
Rita Mayfield Democrat Yea
Robert "Bob" Rita Democrat Yea
Robyn Gabel Democrat Yea
Sara Feigenholtz Democrat Yea
William "Will" Davis Democrat Yea
Brad Stephens Republican Nay
Chapin Rose Republican Nay
Jil Tracy Republican Nay
Joe C. Sosnowski Republican Yea
Norine K. Hammond Republican Nay
Wayne A. Rosenthal Republican Nay

Subjects

taxation finance
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Frequently asked questions

What does HB 2955 do?
Amends the Illinois Income Tax Act to (i) include a deduction for a taxpayer who was required to add back insurance premiums in an amount equal to the amount of any reimbursement received from the insurance company for any loss covered by a policy for which those premiums were paid, to the extent of the federal income tax deduction that would have been allowable for the loss in computing adjusted gross income if not for the reimbursement, (ii) make changes concerning net losses, life insurance income, and withholding by partnerships, and (iii) make various administrative and technical changes. Makes other changes. Effective immediately.
Who sponsors HB 2955?
HB 2955 is sponsored by Barbara Flynn Currie.
What is the current status of HB 2955?
This bill has been enacted into law. Introduced February 22, 2011. Enacted.
Where can I track HB 2955?
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