Section 3-10.

Tax imposed;

tax years ending on or after December 31, 2027.

(a) For taxable years ending on or after December 31, 2027, a resident taxpayer with net assets worth $1,000,000,000 or more on December 31 of the tax year shall recognize gains or losses as if each asset owned by that taxpayer on December 31 of the tax year had been sold for its fair market value on December 31 of the tax year but with adjustment made for taxes paid on gains in previous years.

Any resulting net gains from these deemed sales, up to the phase-in cap amount, shall be included in the taxpayer's income for such taxable year.

Proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account under the preceding sentence.

To the extent that the losses of a taxpayer exceed the taxpayer's gains, such net losses shall 10400SB2111ham002 -10- LRB104 09876 RTM 29432 a not be recognized in such taxable year and shall instead carry forward indefinitely.

(b) For resident taxpayers who would recognize net gains as a result of this Section except for the operation of this sentence, if the taxpayer can show that any portion of those gains was accumulated prior to the taxpayer becoming a resident taxpayer of Illinois, and if the taxpayer can also show that a portion of those gains was previously taxed by any state or jurisdiction in which the taxpayer was a resident prior to becoming a resident of Illinois, then credit shall be provided in the amount of the tax on those gains that was paid to any such prior state or jurisdiction.

Any credits so provided by this subsection, however, shall not exceed the lesser of the total tax owed under this Section on such gains and the tax imposed on such gains by such other prior states or jurisdictions in which the taxpayer was a resident prior to becoming a resident individual of Illinois.

Section 3-20.

Net worth calculation.

(a) As used in this Act, the term "asset" means all real or personal property, whether tangible or intangible and wherever situated, that is:

(1) owned by the taxpayer;

(2) owned by the taxpayer's spouse, minor children, or any trust or estate of which the taxpayer is a beneficiary;

(3) contributed by the taxpayer, or the taxpayer's spouse, minor children, or any trust or estate of which the taxpayer is a beneficiary, to any 10400SB2111ham002 -11- LRB104 09876 RTM 29432 a private foundation, donor advised fund, and any other entity described in Section 501(c) or Section 527 of the Internal Revenue Code of which the taxpayer, or the taxpayer's spouse, minor children, or any trust or estate of which the taxpayer is a beneficiary, is a substantial contributor (as such term is defined in Section 4958(c)(3)(B)(i) of the Internal Revenue Code);

and (4) without duplication, all gifts and donations made within the past 5 years by the taxpayer, or the taxpayer's spouse, minor children, or any trust or estate of which the taxpayer is a beneficiary, as if such gifts and donations were still owned by the taxpayer.

As used in this Section, "net assets" means the fair market value of the taxpayer's assets less the fair market value of the taxpayer's liabilities and, in appropriate cases as determined by the Department of Revenue, liabilities of such other persons described in this Section.

(b) The term "assets" includes the real or personal property described in subsection (a), but only to the extent allowable under the Illinois Constitution, the United States Constitution, and any other governing federal law.

Section 3-25.

Fair market value.

(a) The fair market value of each asset owned by the taxpayer shall be the price at which the asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having 10400SB2111ham002 -12- LRB104 09876 RTM 29432 a reasonable knowledge of relevant facts.

The value of a particular asset shall not be the price that a forced sale of the property would produce.

Further, the fair market value of an asset shall not be its sale price in a market other than a market in which the item is most commonly sold to the public, taking into account the location of the item wherever appropriate.

In the case of an asset that is generally obtained by the public in the retail market, the fair market value of such an asset shall be the price at which the item or a comparable item would be sold at retail.

(b) For purposes of this Section, any feature of an asset, such as a poison pill, that was added with the intent, and has the effect, of reducing the value of the asset shall be disregarded, and no valuation or other discount shall be taken into account if it would have the effect of reducing the value of a pro rata economic interest in an asset below the pro rata portion of the value of the entire asset.

Section 3-30.

Administration.

(a) The Department of Revenue shall amend or create tax forms as necessary for the reporting of gains by assets.

Assets shall be listed with (i) a description of the asset, (ii) the asset category, (iii) the year the asset was acquired, (iv) the adjusted Illinois basis of the asset as of December 31 of the tax year, (v) the fair market value of the asset as of December 31 of the tax year, and (vi) the amount of 10400SB2111ham002 -13- LRB104 09876 RTM 29432 a gain that would be taxable under this Act, unless the Department determines that one or more categories is not appropriate for a particular type of asset.

(b) Asset categories separately listed shall include, but shall not be limited to, the following:

(1) stock held in any publicly traded corporation;

(2) stock held in any private C corporation;

(3) stock held in any S corporation;

(4) interests in any private equity or hedge fund organized as a partnership;

(5) interests in any other partnerships;

(6) interests in any other noncorporate businesses;

(7) bonds and interest bearing savings accounts, cash and deposits;

(8) interests in mutual funds or index funds;

(9) put and call options;

(10) futures contracts;

(11) financial assets held offshore reported on IRS tax form 8938;

(12) real property;

(13) art and collectibles;

(14) pension funds;

(15) other assets;

(16) debts and liabilities;

and (17) assets not owned by the taxpayer but which count toward the $1,000,000,000 threshold pursuant to Section 10400SB2111ham002 -14- LRB104 09876 RTM 29432 a 3-20.

(c) The Department shall specifically request the filing of such forms by any resident individual expected to have net assets in excess of $1,000,000,000.

Such taxpayers shall include, but not be limited to, taxpayers with an adjusted gross income summed over the previous 10 years in excess of $600,000,000.

Section 3-35.

Mark-to-market in other states.

If a resident taxpayer becomes an Illinois resident subsequent to paying tax to another state as a result of recognizing gain or loss pursuant to any mark-to-market or deemed-realization regime of that other state, proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account under such mark-to-market or deemed-realization regime of that other state for purposes of computing gain or loss under Sections 3-5 or 3-10 of this Act.

Section 3-40.

Collection.

The Department of Revenue shall collect the taxes imposed under this Act.

Money collected under this Act from a resident taxpayer residing within the service area of the Northern Illinois Transit Authority, after deducting amounts necessary for administration and enforcement by the Department, shall be paid into the Northern Illinois Transit Authority Occupation and Use Tax Replacement Fund.

Money collected under this Act from a resident taxpayer 10400SB2111ham002 -15- LRB104 09876 RTM 29432 a residing outside the service area of the Northern Illinois Transit Authority, after deducting amounts necessary for administration and enforcement by the Department, shall be paid into the Downstate Public Transportation Fund in the State treasury.

Section 3-45.

Rules.

The Department of Revenue shall adopt rules necessary or appropriate to carry out the purposes of this Act, including rules to prevent the use of year-end transfers, related parties, or other arrangements to avoid its provisions.

Article 4 Section 4-1.

Short title.

This Act may be cited as the Amusement Tax Act.

References in this Article to "this Act" mean this Article.

Section 4-5.

Definitions.

As used in this Act:

"Amusement" means:

(1) any exhibition, performance, presentation, or show for entertainment purposes, including, but not limited to, any theatrical, dramatic, musical, or spectacular performance, promotional show, motion picture show, flower show, athletic contest, sport, game, or similar exhibition, such as boxing, wrestling, skating, dancing, 10400SB2111ham002 -16- LRB104 09876 RTM 29432 a swimming, racing, or exhibitions involving persons riding on animals or vehicles, baseball, basketball, softball, football, tennis, golf, hockey, track and field games, bowling, or billiard or pool games;

(2) any paid television programming, whether transmitted by wire, cable, fiber optics, laser, microwave, radio, satellite, or similar means.

"Amusement" does not include lawful gambling at a casino, as that term is defined in the Illinois Gambling Act.

"Automatic amusement device" means any machine that, upon the insertion of a coin, slug, token, card, or similar object, or upon any other payment method, may be operated by the public generally for use as a game, entertainment, or amusement, whether or not the device registers a score, including, but not limited to, jukeboxes, marble machines, pinball machines, movie and video booths or stands, and all games, operations, or any similar transactions under any name by which they may be indicated.

If a machine consists of more than one game monitor that permits individuals to play separate games simultaneously, each separate game monitor shall be deemed an automatic amusement device.

"Charges paid" means the gross amount of consideration paid for the privilege to enter, witness, view, or participate in an amusement, valued in money, whether received in money or otherwise, including cash, credits, property, and services, determined without any deduction for costs or expenses.

The 10400SB2111ham002 -17- LRB104 09876 RTM 29432 a term "charges paid" includes any charges that the patron pays incidental to obtaining the privilege to enter, witness, view, or participate in an amusement, including, but not limited to, any related markups, service fees, convenience fees, facilitation fees, cancellation fees, and other charges, regardless of terminology.

"Charges paid" does not include charges that are added on account of the tax imposed by this Act or on account of any other tax imposed on the charge.

"Department" means the Department of Revenue.

"License" means a ticket or other license granted for the privilege of entering, witnessing, viewing, or participating in an amusement, or the opportunity to obtain the privilege to enter, witness, view, or participate in an amusement, and includes, but is not limited to, a permanent seat license.

"Live theatrical, live musical, or other live cultural performance" means a live performance in any discipline that is commonly regarded as part of the fine arts, including, but not limited to, live theater, music, opera, drama, comedy, ballet, modern or traditional dance, and book or poetry readings.

The term does not include athletic events, races, or performances conducted at adult entertainment cabarets.

"Operator" means any person who sells or resells a ticket or other license to an amusement for consideration or who, directly through an agreement or arrangement with another party, collects the charges paid for the sale or resale of a ticket or other license to an amusement.

"Operator" includes, 10400SB2111ham002 -18- LRB104 09876 RTM 29432 a but is not limited to, persons engaged in the business of selling or reselling tickets or other licenses to amusements, whether online, in person, or otherwise.

"Operator" also includes persons who are engaged in the business of facilitating the sale or resale of tickets or other licenses to amusements, whether online, in person, or otherwise.

"Operator" does not include banks, credit card companies, payment processors, or other persons whose involvement is limited to performing functions similar to those performed by such entities.

"Owner" means:

(1) a person who has an ownership or leasehold interest in a building, structure, vehicle, boat, area, or other place and who (i) presents, conducts, or operates an amusement in that place or (ii) allows, by agreement or otherwise, another person to present, conduct, or operate an amusement in that place;

or (2) a person who has an ownership or leasehold interest in an amusement or a proprietary interest in an amusement that entitles the person to all or a portion of the proceeds, after payment of reasonable expenses, from the operation, conduct, or presentation of the amusement, excluding proceeds from nonamusement services and sales of tangible personal property;

and (3) a person who operates a community antenna television system or wireless cable television system, or 10400SB2111ham002 -19- LRB104 09876 RTM 29432 a any person receiving consideration from a patron for furnishing, transmitting, or otherwise providing access to paid television programming.

"Paid television" means programming that can be viewed on a television or other screen and is transmitted by cable, fiber optics, laser, microwave, radio, satellite, or similar means to members of the public for consideration.

"Patron" means a person who acquires the privilege to enter, witness, view, or participate in an amusement.

"Person" means any natural individual, firm, society, foundation, institution, partnership, limited liability company, association, joint-stock company, joint venture, public or private corporation, receiver, executor, trustee or other representative appointed by the order of any court, or any other entity recognized by law.

"Resale" means the resale of a ticket or other license to an amusement to an independent and unrelated third party after the ticket or license has been sold by the owner, manager, or operator of the amusement or the owner, manager, or operator of the place where the amusement is being held.

"Reseller" means a person who resells a ticket or other license to an amusement for consideration.

"Reseller" includes, but is not limited to, a ticket broker and applies whether the ticket is resold by bidding, consignment, or otherwise, and whether the ticket is resold in person, at a site on the Internet, or by other means.

10400SB2111ham002 -20- LRB104 09876 RTM 29432 a "Special seating area" means an enclosed or substantially enclosed apartment-style room containing or making available amenities for the exclusive use of patrons who have permission to use that room, including, but not limited to, luxury suites, super suites, or skyboxes, or similar areas.

Those amenities may include, but are not limited to, televisions (including closed-circuit capacity), bathrooms, refrigerators, telephone service, storage sinks, living room or lounge furniture, special spectator seating, food, heat, air conditioning, and parking.

"Ticket" means property that confers the privilege to enter, witness, view, or participate in an amusement, whether or not expressed in a tangible form.

Section 4-10.

Tax imposed.

(a) Except as otherwise provided in this Act, beginning on July 1, 2026, an amusement tax is imposed upon the patrons of every amusement occurring within the State.

Except as otherwise provided, the rate of tax shall be 7% of the admission fees or other charges paid for the privilege of entering, witnessing, viewing, or participating in the amusement.

(b) The tax imposed by subsection (a) shall not apply to the following persons or privileges:

(1) patrons of automatic amusement devices;

(2) patrons of master sports wagering licensees;

10400SB2111ham002 -21- LRB104 09876 RTM 29432 a (3) the privilege of witnessing or participating in any stock show or business show that is not open to the general public;

(4) the privilege of hiring a pedicab;

(5) the privilege of witnessing or participating in any amateur production or activity conducted by a not-for-profit organization that is operated exclusively for charitable, educational, or religious purposes;

(6) the privilege of participating in any amateur event, including, but not limited to, an amateur athletic event, if:

(A) the event takes place primarily on the public way or other public property;

(B) all required permits for the event are obtained;

(C) the event, or the organization conducting the event, is open to the public;

and (D) at least 100 individuals pay to participate in the event;

(7) the privilege of witnessing or participating in any amusement sponsored or conducted by any of the following organizations or institutions if (i) those organizations or institutions are not-for-profit institutions or organizations, (ii) the proceeds from the amusement, after payment of reasonable expenses, inure exclusively to the benefit of the organization or 10400SB2111ham002 -22- LRB104 09876 RTM 29432 a institution, and (iii) no part of the net earnings inure to the benefit of any private shareholder or person:

(A) religious, educational, and charitable institutions, societies, or organizations;

(B) societies or organizations for the prevention of cruelty to children or animals;

(C) societies or organizations conducted and maintained for the purpose of civic improvement;

or (D) fraternal organizations, legion posts, and social and political groups that occasionally conduct or sponsor amusements, but not more often than twice yearly;

(E) organizations that are affiliated with the armed services of the United States or any National Guard organization, any reserve officers' association, or any organization for posts of war veterans, including, but not limited to, any auxiliary unit or society of such a post or organization, if the post, organization, unit, or society is organized in the State of Illinois and if no part of the earnings inure to the benefit of any private shareholder or person;

(F) organizations or associations created and maintained for the purpose of benefiting the members, or the dependents or heirs of members, of the police or fire departments of any political subdivision of the State of Illinois;

or 10400SB2111ham002 -23- LRB104 09876 RTM 29432 a (G) societies or organizations that are established for the sole purpose of maintaining symphony orchestras, opera performances, or artistic presentations, including, but not limited to, musical presentations, if the society or organization:

(i) receives substantial support from voluntary contributions;

(ii) is a not-for-profit institution where no part of the net earnings inure to the benefit of any private shareholder or person;

and (iii) either (a) bears all risk of financial loss from its presentation of the amusement and the amusement is limited to an engagement of not more than 8 calendar days over the course of a calendar year or (b) is substantially and materially involved in the production and performance of the amusement;

if an amusement is sponsored or conducted by 2 or more artistic societies or organizations under this subparagraph (G), the requirements of clauses (i) and (ii) must be met by each of those artistic societies or organizations, but the requirements of subsection (iii) may be met by any of those artistic societies or organizations individually or in combination;

(8) the privilege of entering, witnessing, viewing, or participating in any amusement that occurs in any auditorium, theater, or other space if the maximum capacity of that auditorium, theater, or other space, 10400SB2111ham002 -24- LRB104 09876 RTM 29432 a including all balconies and other sections, is not more than 1,500 persons.

(c) None of the exemptions set forth in subsection (b) of this Section shall apply to a person or privilege unless a written notice of the exemption is filed with the Department by the person seeking the exemption at least (i) 30 calendar days prior to the amusement or (ii) 15 calendar days prior to the date on which admission tickets to the amusement are first made available for sale, whichever is earlier.

The notice shall be on a form prescribed by the Department and shall contain all information and materials necessary to permit the Department to consider whether the exemption claimed by the applicant is applicable.

If applicable, the notice shall contain information and materials necessary to demonstrate that the proceeds intended to inure exclusively to the benefit of the exempt entity or entities are reasonably anticipated to equal at least 10% of the gross revenues from the amusement.

Upon the request of the person filing the notice under this subsection, the Department shall indicate, within 14 calendar days after receiving the notice, whether the claimed exemption does or does not apply or whether additional information is necessary to make a determination.

(d) Initiation fees and membership dues paid to a health club, racquetball club, tennis club or a similar club or organization shall be exempt from the tax imposed in subsection (a) if the club or organization is organized and 10400SB2111ham002 -25- LRB104 09876 RTM 29432 a operated on a membership basis and for the recreational purposes of its members and its members' guests.

The exemption under this subsection shall not apply to any fees paid on a per-event or a per-admission basis.

(e) The tax imposed under subsection (a) shall apply to and be imposed upon 100% of the admission fees or other charges (including, but not limited to, the gross lease or rental amount) paid for the privilege of using special seating areas to witness or to view an amusement.

However, the amusement tax that would otherwise be due upon those charges shall be reduced by any other taxes imposed on those charges if those taxes are separately stated and paid by the patron either directly or as an authorized reimbursement.

(f) It shall be presumed that all amusements are subject to tax under this Act unless the contrary is established by books, records, or other documentary evidence.

(g) In the case of amusements that are delivered electronically to mobile devices, the provisions of the Illinois Mobile Telecommunications Sourcing Conformity Act may be used for the purpose of determining which customers and charges are subject to the tax imposed by this Act.

(h) For the purpose of determining the amount of the amusement tax due under this Act, admission fees or other charges shall be computed exclusive of this tax, any federal, State, or local taxes imposed upon the amusement patron for amusement services and any separately stated optional charges 10400SB2111ham002 -26- LRB104 09876 RTM 29432 a for nonamusement services or for the sale or use of tangible personal property.

The fact that the patron could have avoided the charge by obtaining the privilege from or through a different owner, manager, or operator, pursuant to different terms, or through a course of performance that would have avoided the obligation to pay the charge, does not make the charge optional.

(i) It is unlawful for any person to produce, present, conduct, or resell tickets to any amusement without collecting the tax under this Act except as provided in this Act.

(j) Notwithstanding subsection (a), the rate of tax imposed under this Act upon the buyer of a ticket or other license in a resale transaction shall be equal to 7% of the admission fees or other charges paid for the ticket or other license in the resale transaction.

Section 4-15.

Collection, payment, and accounting.

(a) It shall be the joint and several duty of every owner, manager, or operator of an amusement or of a place where an amusement is being held, and of every reseller, to secure from each patron or buyer the tax imposed by this Act and to remit the tax to the Department not later than the 15th day of each calendar month for all admission fees or other charges received during the immediately preceding calendar month.

A verified statement of admission fees or charges in a form prescribed by the Department shall accompany each remittance.

10400SB2111ham002 -27- LRB104 09876 RTM 29432 a (b) Every person required to collect and remit the tax imposed by this Act shall keep accurate books and records, including original source documents and books of entry denoting the transactions that gave rise, or may have given rise, to the tax liability or any exemption that may be claimed.

All such books, records, and accounts shall be available for inspection by the Department at all reasonable times during business hours of the day.

Section 4-20.

Incorporation of the Retailers' Occupation Tax Act.

All of the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6b, and 6c of the Retailers' Occupation Tax Act that are not inconsistent with this Act, and Section 3-7 of the Uniform Penalty and Interest Act, shall apply, as far as practicable, to the subject matter of this Act to the same extent as if such provisions were included in this Act.

Section 4-25.

Tax not imposed if prohibited.

The tax under this Act is not imposed upon any activity that may not under the Constitution and statutes of the United States be made the subject of taxation by this State.

Section 4-30.

Distribution of proceeds.

Proceeds that are collected under this Act from within the metropolitan region, as defined in the Northern Illinois Transit Authority Act, shall be collected by the Department and deposited into the 10400SB2111ham002 -28- LRB104 09876 RTM 29432 a trust fund referenced in subsection (n) of Section 4.03 of the Northern Illinois Transit Authority Act.

Notwithstanding the provisions of subsection (n) of Section 4.03 of the Northern Illinois Transit Authority Act, 100% of the proceeds deposited into that trust fund under the provisions of this Section shall be allocated to the Northern Illinois Transit Authority.

Proceeds that are collected under this Act from outside of the metropolitan region shall be deposited into the Downstate Public Transportation Fund.

Section 4-35.

Rules.

The Department may adopt rules for the implementation and administration of this Act.".

"Car-share vehicles" means motor vehicles that are SB2111 Enrolled - 7 - LRB104 09876 LNS 19944 b operated as part of a regional fleet by a public or private car-sharing company or organization and provide hourly or daily service.

"Commercial development project" means a development project that is undertaken for the development of land for 10400SB2111ham002 -29- LRB104 09876 RTM 29432 a commercial use, including residential housing, multi-family housing, mixed-use housing, and nonresidentialnon-residential commercial developments.

"Housing development project" means a development project SB2111 Enrolled - 8 - LRB104 09876 LNS 19944 b consisting of (i) residential units only, (ii) mixed-use developments consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use, or (iii) transitional housing or supportive housing.

10400SB2111ham002 -30- LRB104 09876 RTM 29432 a "Maximum automobile parking requirements" means any law, code, or policy that limits a maximum number of off-street, private parking spaces for new residential and commercial developments.

SB2111 Enrolled - 9 - LRB104 09876 LNS 19944 b "Residential hotel" means any building containing 6 or more guest rooms or efficiency living units that is used or intended or designed to be used, rented, hired out, or occupied for sleeping purposes by guests and that is also the primary residence of those guests.

"Residential hotel" does 10400SB2111ham002 -31- LRB104 09876 RTM 29432 a not include any building containing 6 or more guest rooms or efficiency living units primarily used by transient guests who do not occupy the building as their primary residence.

A unit of local government may not require voluntarily provided parking to be provided free of SB2111 Enrolled - 10 - LRB104 09876 LNS 19944 b charge.

(b) Section 5-10 does not apply to minimum automobile parking requirements if the requirements conflict with a contractual agreement or approved site plan with the unit of local government that was executed or approved on or before 10400SB2111ham002 -32- LRB104 09876 RTM 29432 a the effective date of this Act.

This Act is a limitation under subsection (i) of Section 6 of Article VII of the Illinois SB2111 Enrolled - 11 - LRB104 09876 LNS 19944 b Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

To the extent that this Act conflicts with any other provision of law, this Act 10400SB2111ham002 -33- LRB104 09876 RTM 29432 a controls.

As used in this subsection, "Authority leader" has the meaning given to that term in the various Acts and Laws creating the SB2111 Enrolled - 12 - LRB104 09876 LNS 19944 b Regional Development Authorities.

The Executive Inspector General appointed by the Governor 10400SB2111ham002 -34- LRB104 09876 RTM 29432 a shall have jurisdiction over all board members, employees, vendors, and others doing business with the Regional Transit Boards and Regional Development Authorities to investigate allegations of fraud, waste, abuse, mismanagement, misconduct, nonfeasance, misfeasance, malfeasance, or violations of this Act.

A Regional Transit Board shall notify the Executive Ethics Commission within 10 days after employing or appointing a person to serve SB2111 Enrolled - 13 - LRB104 09876 LNS 19944 b as Inspector General, and the Executive Ethics Commission shall approve or reject the appointment or employment of the Inspector General.

Any notification not acted upon by the Executive Ethics Commission within 60 days after its receipt shall be deemed to have received the approval of the Executive 10400SB2111ham002 -35- LRB104 09876 RTM 29432 a Ethics Commission.

(b) The Executive Inspector General appointed by the Governor shall have exclusive jurisdiction to investigate SB2111 Enrolled - 14 - LRB104 09876 LNS 19944 b complaints or allegations of violations of this Act and, in his or her discretion, may investigate other complaints or allegations.

Unless created by statute, no Regional Transit Board or Regional Development Authority shall create or retain an investigative body that investigates matters under the 10400SB2111ham002 -36- LRB104 09876 RTM 29432 a Executive Inspector General's jurisdiction.

In the event the Executive Inspector General provides an Inspector General appointed or employed by a Regional Transit Board with written notification of intent to delegate investigatory responsibility for a complaint, allegation, or ongoing SB2111 Enrolled - 15 - LRB104 09876 LNS 19944 b investigation, the Executive Inspector General shall provide all information to the Inspector General appointed or employed by a Regional Transit Board.

(c) An Inspector General appointed or employed by a Regional Transit Board shall provide a monthly activity report 10400SB2111ham002 -37- LRB104 09876 RTM 29432 a to the Executive Inspector General indicating:

Investigatory files and reports prepared by the Office of the Executive Inspector General and the Office of an Inspector General appointed or employed by a Regional Transit Board may be disclosed between the Offices as necessary to implement the SB2111 Enrolled - 16 - LRB104 09876 LNS 19944 b provisions of this Article.

10400SB2111ham002 -38- LRB104 09876 RTM 29432 a (15 ILCS 305/37.5 new) Sec.

24) SB2111 Enrolled - 17 - LRB104 09876 LNS 19944 b Sec.

(a) In accordance with the requirements of this Section, the Secretary of State shall issue a standard Illinois Identification Card, as well as a mobile Illinois Identification Card, to any natural person who is a resident 10400SB2111ham002 -39- LRB104 09876 RTM 29432 a of the State of Illinois who applies for such a card, or renewal thereof.

(a-5) If an applicant for an identification card has a SB2111 Enrolled - 18 - LRB104 09876 LNS 19944 b current driver's license or instruction permit issued by the Secretary of State, the Secretary may require the applicant to utilize the same residence address and name on the identification card, driver's license, and instruction permit records maintained by the Secretary.

The Secretary may 10400SB2111ham002 -40- LRB104 09876 RTM 29432 a promulgate rules to implement this provision.

The Secretary may adopt rules regarding the eligibility, SB2111 Enrolled - 19 - LRB104 09876 LNS 19944 b process, and fee for an expedited Illinois Identification Card.

If the Secretary of State determines that the volume of expedited identification card requests received on a given day exceeds the ability of the Secretary to process those requests in an expedited manner, the Secretary may decline to provide 10400SB2111ham002 -41- LRB104 09876 RTM 29432 a expedited services, and the additional fee for the expedited service shall be refunded to the applicant.

If the committed person's photograph and demographic information matches an existing SB2111 Enrolled - 20 - LRB104 09876 LNS 19944 b Illinois Identification Card or Illinois driver's license and the Secretary of State verifies the applicant's social security number with the Social Security Administration, the Secretary of State shall issue the committed person a standard Illinois Identification Card.

If the photograph 10400SB2111ham002 -42- LRB104 09876 RTM 29432 a or demographic information matches an existing Illinois Identification Card or Illinois driver's license in another person's name or identity, a standard Illinois Identification Card shall not be issued until the committed person submits a certified birth certificate and social security card to the Secretary of State and the Secretary of State verifies the identity of the committed person.

If the committed person does not have a social security SB2111 Enrolled - 21 - LRB104 09876 LNS 19944 b number and is eligible for a social security number, the Secretary of State shall not issue a standard Illinois Identification Card until the committed person obtains a social security number.

If the Secretary of State verifies the applicant's social security number with the Social 10400SB2111ham002 -43- LRB104 09876 RTM 29432 a Security Administration, the Secretary of State shall issue the committed person a standard Illinois Identification Card.

(a-25) The Secretary of State shall issue a limited-term Illinois Identification Card valid for 90 days to a committed person upon release on parole, mandatory supervised release, aftercare release, final discharge, or pardon from the Department of Corrections, the Department of Juvenile Justice, a Federal Bureau of Prisons facility located in Illinois, or a county jail or county department of corrections, if the released person does not obtain a standard Illinois Identification Card as described in subsection (a-20) prior to release but does present a Secretary of State prescribed Identification Card verification form completed by the correctional facility, verifying the released person's date of birth, social security number, if the person has a social SB2111 Enrolled - 22 - LRB104 09876 LNS 19944 b security number, and his or her Illinois residence address.

Prior to the expiration of the 90-day period of the 10400SB2111ham002 -44- LRB104 09876 RTM 29432 a limited-term Illinois Identification Card, if the released person submits to the Secretary of State a certified copy of his or her birth certificate and his or her social security card, if the person has a social security number, or other documents authorized by the Secretary, a standard Illinois Identification Card shall be issued.

(a-30) The Secretary of State shall issue a standard Illinois Identification Card to a person upon conditional release or absolute discharge from the custody of the Department of Human Services, if the person presents a certified copy of his or her birth certificate, social security card, if the person has a social security number, or other documents authorized by the Secretary, and a document SB2111 Enrolled - 23 - LRB104 09876 LNS 19944 b proving his or her Illinois residence address.

The Secretary of State shall issue a standard Illinois Identification Card to a person prior to his or her conditional release or absolute discharge if personnel from the Department of Human Services bring the person to a Secretary of State location with the 10400SB2111ham002 -45- LRB104 09876 RTM 29432 a required documents.

The Secretary of State shall issue a limited-term Illinois Identification Card to a person no SB2111 Enrolled - 24 - LRB104 09876 LNS 19944 b sooner than 14 days prior to his or her conditional release or absolute discharge if personnel from the Department of Human Services bring the person to a Secretary of State location with the required documents.

Documents proving residence address shall include any official document of the Department 10400SB2111ham002 -46- LRB104 09876 RTM 29432 a of Human Services showing the person's address after release and a Secretary of State prescribed verification form, which may be executed by personnel of the Department of Human Services.

The card shall be prepared and supplied by the Secretary of State, and shall include a photograph and signature or mark of the applicant, a designation indicating that the card is an Illinois Person with a Disability Identification Card, and shall include a comprehensible designation of the type and classification of SB2111 Enrolled - 25 - LRB104 09876 LNS 19944 b the applicant's disability as set out in Section 4A of this Act.

However, the Secretary of State may provide by rule for the issuance of Illinois Person with a Disability Identification Cards without photographs if the applicant has a bona fide religious objection to being photographed or to 10400SB2111ham002 -47- LRB104 09876 RTM 29432 a the display of his or her photograph.

The Illinois Person with a Disability Identification Card may be used as adequate documentation of disability in lieu of a physician's determination of disability, a determination of disability from a physician assistant, a determination of disability from an advanced practice registered nurse, or any other documentation of disability whenever any State law requires that a person with a disability provide such documentation of disability, however an Illinois Person with a Disability Identification Card shall not qualify the cardholder to participate in any program or to receive any SB2111 Enrolled - 26 - LRB104 09876 LNS 19944 b benefit which is not available to all persons with like disabilities.

Notwithstanding any other provisions of law, an Illinois Person with a Disability Identification Card, or evidence that the Secretary of State has issued an Illinois Person with a Disability Identification Card, shall not be 10400SB2111ham002 -48- LRB104 09876 RTM 29432 a used by any person other than the person named on such card to prove that the person named on such card is a person with a disability or for any other purpose unless the card is used for the benefit of the person named on such card, and the person named on such card consents to such use at the time the card is so used.

SB2111 Enrolled - 27 - LRB104 09876 LNS 19944 b (c) The Secretary of State shall provide that each original or renewal Illinois Identification Card or Illinois Person with a Disability Identification Card issued to a person under the age of 21 shall be of a distinct nature from those Illinois Identification Cards or Illinois Person with a 10400SB2111ham002 -49- LRB104 09876 RTM 29432 a Disability Identification Cards issued to individuals 21 years of age or older.

The Secretary may SB2111 Enrolled - 28 - LRB104 09876 LNS 19944 b not issue any other identification card which identifies an occupation, status, affiliation, hobby, or other unique characteristics of the identification card holder which is unrelated to the purpose of the identification card.

(c-5) Beginning on or before July 1, 2015, the Secretary 10400SB2111ham002 -50- LRB104 09876 RTM 29432 a of State shall designate a space on each original or renewal identification card where, at the request of the applicant, the word "veteran" shall be placed.

(e) The Secretary of State, in his or her discretion, may designate on each Illinois Identification Card or Illinois Person with a Disability Identification Card a space where the card holder may place a sticker or decal, issued by the SB2111 Enrolled - 29 - LRB104 09876 LNS 19944 b Secretary of State, of uniform size as the Secretary may specify, that shall indicate in appropriate language that the card holder has renewed his or her Illinois Identification Card or Illinois Person with a Disability Identification Card.

(f)(1) The Secretary of State may issue a mobile 10400SB2111ham002 -51- LRB104 09876 RTM 29432 a identification card to an individual who is otherwise eligible to hold a physical credential in addition to, and not instead of, an identification card if the Secretary of State has issued an identification card to the person.

(1) the relying parties to authenticate electronic credentials in accordance with applicable AAMVA standards SB2111 Enrolled - 30 - LRB104 09876 LNS 19944 b prior to acceptance of the electronic credential;

and (3) the relying parties to request only electronic 10400SB2111ham002 -52- LRB104 09876 RTM 29432 a credential data elements that are necessary to complete the transaction for which data is being requested.

(i)(1) The electronic credential holder shall be required to have the holder's their physical credential on the holder's their person for all purposes for which an identification card SB2111 Enrolled - 31 - LRB104 09876 LNS 19944 b is required.

(2) Electronic credential systems shall be designed so that there is no requirement for the electronic credential 10400SB2111ham002 -53- LRB104 09876 RTM 29432 a holder to display or relinquish possession of the credential holder's mobile device to relying parties for the acceptance of an electronic credential.

(l) The display of a mobile identification card shall not serve as consent or authorization for a law enforcement officer, or any other person, to search, view, or access any SB2111 Enrolled - 32 - LRB104 09876 LNS 19944 b other data or application on the mobile device.

If a person presents the person's mobile device to a law enforcement officer for purposes of displaying a mobile identification card, the law enforcement officer shall promptly return the mobile device to the person once the officer has had an 10400SB2111ham002 -54- LRB104 09876 RTM 29432 a opportunity to verify the identity of the person.

"Electronic credential" means an electronic extension of the departmental issued physical credential that conveys SB2111 Enrolled - 33 - LRB104 09876 LNS 19944 b identity and complies with AAMVA's mobile driver license Implementation guidelines and the ISO/IEC 18013-5 standard.

"Electronic credential system" means a digital process that includes a method for provisioning electronic credentials, requesting and transmitting electronic credential 10400SB2111ham002 -55- LRB104 09876 RTM 29432 a data elements, and performing tasks to maintain the system.

SB2111 Enrolled - 34 - LRB104 09876 LNS 19944 b "Provision" means the initial loading of an electronic credential onto a device.

"Verification process" means a method of authenticating 10400SB2111ham002 -56- LRB104 09876 RTM 29432 a the electronic credential through the use of secured encryption communication.

The Department of Transportation Law of the Civil Administrative Code of Illinois is amended by changing Sections 2705-203 and 2705-440 and by adding Sections 2705-592, 2705-594, 2705-596, 2705-598, and 2705-6302705-598 as follows:

(20 ILCS 2705/2705-203) SB2111 Enrolled - 35 - LRB104 09876 LNS 19944 b Sec.

improve the efficiency and effectiveness of the State's transportation system and transportation 10400SB2111ham002 -57- LRB104 09876 RTM 29432 a safety;

(4) ensure that all State transportation funds invested are directed to support progress toward the achievement of performance targets established in the SB2111 Enrolled - 36 - LRB104 09876 LNS 19944 b State's long-range transportation plan;

and (7) reduce disparities in transportation system 10400SB2111ham002 -58- LRB104 09876 RTM 29432 a performance experienced by racially marginalized communities, low-income to moderate-income consumers, and other disadvantaged groups and populations identified under the Environmental Justice Act.

Federally required transit asset management plans developed by the Northern Illinois Transit Authority Regional Transportation SB2111 Enrolled - 37 - LRB104 09876 LNS 19944 b Authority (RTA) or Service Boards service boards, as defined in Section 1.03 of the Northern Illinois Transit Regional Transportation Authority Act, shall become the transportation asset management plans for all public transportation assets owned and operated by the Service Boards service boards.

The Department's transit asset management plan shall be made 10400SB2111ham002 -59- LRB104 09876 RTM 29432 a publicly available on the Department's website.

The process shall include both a quantitative analysis of the evaluation factors and qualitative review by SB2111 Enrolled - 38 - LRB104 09876 LNS 19944 b the Department.

Starting April 1, 2022, no new capacity 10400SB2111ham002 -60- LRB104 09876 RTM 29432 a project shall be included in the multi-year transportation plan or annual element without being evaluated under the selection process described in this Section.

and (2) reduce disparities in transportation system performance experienced by racially marginalized SB2111 Enrolled - 39 - LRB104 09876 LNS 19944 b communities, low-income to moderate-income consumers, and other disadvantaged groups and populations identified under the Environmental Justice Act;

10400SB2111ham002 -61- LRB104 09876 RTM 29432 a (f) The prioritization process developed under subsection (e) may apply only to State jurisdiction projects and not to:

(g) A summary of the project evaluation process, measures, SB2111 Enrolled - 40 - LRB104 09876 LNS 19944 b program, and scores for all candidate projects shall be published on the Department website in a timely manner.

Intercity rail service Rail Service.

10400SB2111ham002 -62- LRB104 09876 RTM 29432 a (a) For the purposes of providing intercity railroad passenger service within this State and throughout the United States, the Department is authorized to enter into agreements with any state, state agency, unit units of local government or political subdivision subdivisions, the Commuter Rail Division of the Northern Illinois Transit Regional Transportation Authority (or a public corporation on behalf of that Division), architecture or engineering firm firms, the National Railroad Passenger Corporation, any carrier, or any individual, corporation, partnership, or public or private entity.

(1.5) to freely lease or otherwise contract for any purpose any of the locomotives, passenger railcars, and SB2111 Enrolled - 41 - LRB104 09876 LNS 19944 b other rolling stock equipment or accessions to any state or state agency, public or private entity, or quasi-public entities;

(3) to lease or otherwise contract for use, 10400SB2111ham002 -63- LRB104 09876 RTM 29432 a maintenance, servicing, and repair of any needed locomotives, rolling stock, stations, or other facilities, the lease or contract having a term not to exceed 50 years (but any multi-year contract shall recite that the contract is subject to termination and cancellation, without any penalty, acceleration payment, or other recoupment mechanism, in any fiscal year for which the General Assembly fails to make an adequate appropriation to cover the contract obligation);

(8) to make grants to any body politic and corporate, any unit of local government, or the Commuter Rail Division of the Northern Illinois Transit Regional Transportation Authority to cover all or any part of any SB2111 Enrolled - 42 - LRB104 09876 LNS 19944 b capital or operating costs of the service and to enter into agreements with respect to those grants;

and (10) to otherwise enter into any contracts necessary 10400SB2111ham002 -64- LRB104 09876 RTM 29432 a or convenient to provide rail services, operate or maintain locomotives, passenger railcars, and other rolling stock equipment or accessions, including the lease or use of such locomotives, railcars, equipment, or accessions.

(e) Any contract with the Commuter Rail Division of the Northern Illinois Transit Regional Transportation Authority SB2111 Enrolled - 43 - LRB104 09876 LNS 19944 b (or a public corporation on behalf of the Division) under this Section shall provide that all costs in excess of revenue received by the Division generated from intercity rail service provided by the Division shall be fully borne by the Department, and no funds for operation of commuter rail service shall be used, directly or indirectly, or for any 10400SB2111ham002 -65- LRB104 09876 RTM 29432 a period of time, to subsidize the intercity rail operation.

Whenever the Department enters into an agreement with any State or State agency, any public or private entity or quasi-public entity for the lease, rental or use of locomotives, passenger SB2111 Enrolled - 44 - LRB104 09876 LNS 19944 b railcars, and other rolling stock equipment or accessions, the Department may deposit such receipts into a separate escrow account.

For purposes of this subsection, "escrow account" an escrow account means any fiduciary account established with (i) any banking corporation which is both organized under the Illinois Banking Act and authorized to accept and administer 10400SB2111ham002 -66- LRB104 09876 RTM 29432 a trusts in this State, or (ii) any national banking association which has its principal place of business in this State and which also is authorized to accept and administer trusts in this State.

At the SB2111 Enrolled - 45 - LRB104 09876 LNS 19944 b end of the term of an escrow account holding lease payments, use fees, or rental payments, the remaining balance shall be deposited in the High-Speed Rail Rolling Stock Fund, a special fund that is created in the State treasury Treasury.

Moneys in the High-Speed Rail Rolling Stock Fund may be used for any purpose related to locomotives, passenger railcars, and other 10400SB2111ham002 -67- LRB104 09876 RTM 29432 a rolling stock equipment.

To improve public transportation service across the State, the SB2111 Enrolled - 46 - LRB104 09876 LNS 19944 b Department, the Illinois State Toll Highway Authority, and counties and municipalities shall collaborate with and provide support to the Northern Illinois Transit Authority and other public transit providers in the implementation of bus rapid transit and bus priority service using the expressway, tollway, and other roadway systems.

The Department, in 10400SB2111ham002 -68- LRB104 09876 RTM 29432 a cooperation with the Northern Illinois Transit Authority, other public transit providers, the Illinois State Toll Highway Authority, and counties and municipalities, shall evaluate and refine technologies and operations approaches to bus rapid transit and bus priority operations and make recommendations to the Northern Illinois Transit Authority and other public transit providers.

The Committee shall consist of SB2111 Enrolled - 47 - LRB104 09876 LNS 19944 b the following members:

and 10400SB2111ham002 -69- LRB104 09876 RTM 29432 a (3) transportation experts from outside the Department, including, but not limited to, staff of a metropolitan planning organization or local transportation department, as designated by the Secretary.

and SB2111 Enrolled - 48 - LRB104 09876 LNS 19944 b (5) developing a cost and maintenance policy for construction and maintenance of future facilities in partnership with transit agencies.

(d) The Committee shall consult with highway and transit 10400SB2111ham002 -70- LRB104 09876 RTM 29432 a experts, transit users, and other individuals and groups with knowledge and experience on how to optimize roadways for public transportation service.

SB2111 Enrolled - 49 - LRB104 09876 LNS 19944 b (g) This Section is repealed January 1, 2030.

(a) Within 12 months after the effective date of this amendatory Act of the 104th General Assembly and until January 10400SB2111ham002 -71- LRB104 09876 RTM 29432 a 1, 2030, the Secretary shall designate a Transit Coordination Oversight Officer within the Department.

The Department shall conduct a SB2111 Enrolled - 50 - LRB104 09876 LNS 19944 b planning study on improvements needed at the Joliet train station for potential extensions of passenger rail service to Peoria and other locations outside of the counties of Cook, DuPage, Kane, Lake, McHenry, and Will.

(20 ILCS 2705/2705-630 new) Sec.

2705-630.

Transit to Trails Grant Program.

(a) Subject to appropriation, the Secretary shall establish the Transit to Trails Grant Program to award grants to eligible entities for projects that facilitate travel by public transportation to public outdoor recreation sites for outdoor activities, including hiking, biking, boating, picnicking, hunting, fishing, wildlife observation, or other nature-based activities.

Grants awarded under the program shall be used to:

(1) alter or expand the operation of existing transit service to accommodate increased access by the public to outdoor recreation activities;

(2) construct new infrastructure or improve existing infrastructure to facilitate safe, convenient access to outdoor recreation sites, including, but not limited to, stations, stops, shelters, bike-share, and bicycle infrastructure;

and (3) conduct public outreach, education, and engagement efforts to inform the public and encourage the use of transit and access to outdoor recreation.

SB2111 Enrolled - 51 - LRB104 09876 LNS 19944 b (b) The Secretary shall award grants through the program on an annual basis.

The Department shall adopt necessary rules to create and implement the program.

(c) Eligible recipients of grants under the program shall include:

(1) public transit agencies;

(2) owners of outdoor recreation lands accessible by the general public, including parks districts, conservation districts, and forest preserve districts;

and (3) units of local government, State agencies, and nonprofit organizations engaged in facilitating outdoor recreation opportunities.

(d) In considering grant applications under the program, the Department shall prioritize projects that demonstrate an intent to enhance access to outdoor recreation opportunities for populations with the greatest need of improved access to outdoor nature-based recreation.

These populations shall be defined as residents of:

(1) R3 Areas as established under Section 10-40 of the Cannabis Regulation and Tax Act;

(2) environmental justice communities as defined under the Illinois Solar for All Program and updated from time to time by the Illinois Power Agency and the Administrator of the Illinois Solar for All Program;

(3) communities that can demonstrate to the Secretary that the community has inadequate, insufficient, or no SB2111 Enrolled - 52 - LRB104 09876 LNS 19944 b park space or recreation facilities, including by demonstrating:

(A) quality concerns relating to the available park space or recreation facilities;

(B) the presence of recreational facilities that do not serve the needs of the community;

or (C) the inequitable distribution of park space for high-need populations, based on income, age, or other measures of vulnerability and need;

and (4) communities in which at least 50% of the population is not located within 0.5 miles of park space.

(e) The Department shall provide technical assistance in preparing grant applications to applicants upon request.

The Illinois Procurement Code is amended by 10400SB2111ham002 -72- LRB104 09876 RTM 29432 a adding Section 20-25.3 as follows:

(a) Notwithstanding any other provision of this Code or any law to the contrary, the Department of Transportation shall identify a method of source selection that will make it possible to procure and contract with a consultant to assist with the transition from the Regional Transportation Authority to the Northern Illinois Transit Authority as set out in SB2111 Enrolled - 53 - LRB104 09876 LNS 19944 b Section 1.04.

(c) All potential contractors shall be registered in the 10400SB2111ham002 -73- LRB104 09876 RTM 29432 a Illinois Procurement Gateway vendor portal prior to contract execution.

SB2111 Enrolled - 54 - LRB104 09876 LNS 19944 b Section 5-900.5-810.

The Illinois Income Tax Act is amended by changing Sections 203 and 901 as follows:

(35 ILCS 5/203) (from Ch.

120, par.

2-203) Sec.

203.

Base income defined.

(a) Individuals.

(1) In general.

In the case of an individual, base income means an amount equal to the taxpayer's adjusted gross income for the taxable year as modified by paragraph (2).

(2) Modifications.

The adjusted gross income referred to in paragraph (1) shall be modified by adding thereto the sum of the following amounts:

(A) An amount equal to all amounts paid or accrued 10400SB2111ham002 -74- LRB104 09876 RTM 29432 a 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 Code;

(B) An amount equal to the amount of tax imposed by this Act to the extent deducted from gross income in the computation of adjusted gross income for the taxable year;

(C) An amount equal to the amount received during the taxable year as a recovery or refund of real property taxes paid with respect to the taxpayer's principal residence under the Revenue Act of 1939 and for which a deduction was previously taken under subparagraph (L) of this paragraph (2) prior to July 1, 1991, the retrospective application date of Article 4 of Public Act 87-17.

In the case of multi-unit or multi-use structures and farm dwellings, the taxes on the taxpayer's principal residence shall be that portion of the total taxes for the entire property which is attributable to such principal residence;

(D) 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 adjusted gross income;

10400SB2111ham002 -75- LRB104 09876 RTM 29432 a (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 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-10) For taxable years ending after December 31, 1997, an amount equal to any eligible remediation costs that the individual deducted in computing adjusted gross income and for which the individual claims a credit under subsection (l) of Section 201;

(D-15) For taxable years 2001 and thereafter, an amount equal to the bonus depreciation deduction taken on the taxpayer's federal income tax return for the taxable year under subsection (k) of Section 168 of the Internal Revenue Code;

(D-16) 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 the aggregate amount of the deductions taken in all taxable years under subparagraph (Z) with respect to that property.

10400SB2111ham002 -76- LRB104 09876 RTM 29432 a If the taxpayer continues to own property through the last day of the last tax year for which a subtraction is allowed with respect to that property under subparagraph (Z) and for which the taxpayer was allowed in any taxable year to make a subtraction modification under subparagraph (Z), then an amount equal to that subtraction modification.

The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;

(D-17) 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 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 10400SB2111ham002 -77- LRB104 09876 RTM 29432 a 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 interest was paid, accrued, or incurred.

For taxable years ending on and after December 31, 2025, for purposes of applying this paragraph in the case of a taxpayer to which Section 163(j) of the Internal Revenue Code applies for the taxable year, the reduction in the amount of interest for which a deduction is allowed by reason of Section 163(j) shall be treated as allocable first to persons who are not foreign persons referred to in this paragraph and then to such foreign persons.

For taxable years ending before December 31, 2025, this paragraph shall not apply to the following:

(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 10400SB2111ham002 -78- LRB104 09876 RTM 29432 a with respect to such interest;

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:

(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 (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 (iv) an item of interest paid, accrued, or incurred, directly or indirectly, to a person if the taxpayer establishes by clear and convincing 10400SB2111ham002 -79- LRB104 09876 RTM 29432 a evidence that the adjustments are unreasonable;

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).

For taxable years ending on or after December 31, 2025, this paragraph shall not apply to the following:

(i) 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:

(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 (ii) an item of interest paid, accrued, or incurred, directly or indirectly, to a person if the taxpayer establishes by clear and convincing evidence that the adjustments are unreasonable;

or if the taxpayer and the Director agree in writing 10400SB2111ham002 -80- LRB104 09876 RTM 29432 a to the application or use of an alternative method 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 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;

(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 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 10400SB2111ham002 -81- LRB104 09876 RTM 29432 a 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 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 intangible expenses and costs were directly or indirectly paid, incurred, or accrued.

The 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) of this Act.

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, ownership, sale, exchange, or any other disposition of intangible property;

(2) losses incurred, directly or indirectly, from factoring transactions or discounting transactions;

(3) royalty, patent, technical, and copyright fees;

(4) licensing fees;

and (5) other similar expenses and costs.

For purposes of this 10400SB2111ham002 -82- LRB104 09876 RTM 29432 a subparagraph, "intangible property" includes patents, patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets, and similar types of intangible assets.

For taxable years ending before December 31, 2025, this paragraph shall not apply to the following:

(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 (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:

(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 10400SB2111ham002 -83- LRB104 09876 RTM 29432 a income tax, and is paid pursuant to a contract or agreement that reflects arm's-length terms;

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;

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);

For taxable years ending on or after December 31, 2025, this paragraph shall not apply to the following:

(i) 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:

(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 10400SB2111ham002 -84- LRB104 09876 RTM 29432 a principal purpose the avoidance of Illinois income tax, and is paid pursuant to a contract or agreement that reflects arm's-length terms;

or (ii) 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;

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).

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;

(D-19) 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 10400SB2111ham002 -85- LRB104 09876 RTM 29432 a 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 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.

The 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;

(D-20) For taxable years beginning on or after January 1, 2002 and ending on or before December 31, 2006, in the case of a distribution from a qualified 10400SB2111ham002 -86- LRB104 09876 RTM 29432 a 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 or (ii) a distribution from the Illinois Prepaid Tuition Trust Fund, 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 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).

10400SB2111ham002 -87- LRB104 09876 RTM 29432 a For the purposes of this subparagraph (D-20), a qualified tuition program has made reasonable efforts if it makes disclosures (which may use the term "in-state program" or "in-state plan" and need not specifically refer to Illinois or its qualified programs by name) (i) directly to prospective participants in its offering materials or makes a public disclosure, such as a website posting;

and (ii) where applicable, to intermediaries selling the out-of-state program in the same manner that the out-of-state program distributes its offering materials;

(D-20.5) For taxable years beginning on or after January 1, 2018, in the case of a distribution from a qualified ABLE program under Section 529A of the Internal Revenue Code, other than a distribution from a qualified ABLE program created under Section 16.6 of the State Treasurer Act, an amount equal to the amount excluded from gross income under Section 529A(c)(1)(B) of the Internal Revenue Code;

(D-21) For taxable years beginning on or after January 1, 2007, in the case of transfer of moneys from a qualified tuition program under Section 529 of the Internal Revenue Code that is administered by the State to an out-of-state program, an amount equal to the amount of moneys previously deducted from base 10400SB2111ham002 -88- LRB104 09876 RTM 29432 a income under subsection (a)(2)(Y) of this Section;

(D-21.5) For taxable years beginning on or after January 1, 2018, in the case of the transfer of moneys from a qualified tuition program under Section 529 or a qualified ABLE program under Section 529A of the Internal Revenue Code that is administered by this State to an ABLE account established under an out-of-state ABLE account program, an amount equal to the contribution component of the transferred amount that was previously deducted from base income under subsection (a)(2)(Y) or subsection (a)(2)(HH) of this Section;

(D-22) For taxable years beginning on or after January 1, 2009, and prior to January 1, 2018, 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.

For taxable years beginning on or after January 1, 2018:

(1) in the case of a nonqualified withdrawal or 10400SB2111ham002 -89- LRB104 09876 RTM 29432 a refund, as defined under Section 16.5 of the State Treasurer Act, of moneys from a qualified tuition program under Section 529 of the Internal Revenue Code administered by the State, 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, and (2) in the case of a nonqualified withdrawal or refund from a qualified ABLE program under Section 529A of the Internal Revenue Code administered by the State that is not used for qualified disability expenses, an amount equal to the contribution component of the nonqualified withdrawal or refund that was previously deducted from base income under subsection (a)(2)(HH) of this Section;

(D-23) An amount equal to the credit allowable to the taxpayer under Section 218(a) of this Act, determined without regard to Section 218(c) of this Act;

(D-24) For taxable years ending on or after December 31, 2017, an amount equal to the deduction allowed under Section 199 of the Internal Revenue Code for the taxable year;

(D-25) In the case of a resident, an amount equal to the amount of tax for which a credit is allowed pursuant to Section 201(p)(7) of this Act;

10400SB2111ham002 -90- LRB104 09876 RTM 29432 a (D-26) The amount recognized as a net gain for the taxable year under the Extremely High Wealth Mark-to-Market Tax Act.

and by deducting from the total so obtained the sum of the following amounts:

(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 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.

For taxable years ending on or after 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 a member 10400SB2111ham002 -91- LRB104 09876 RTM 29432 a of any component of the Armed Forces of the United States and in respect of any compensation paid or accrued to a resident who as a governmental employee was a prisoner of war or missing in action, and in respect of any compensation paid to a resident in 2001 or thereafter by reason of being 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.

The provisions of this subparagraph (E) are exempt from the provisions of Section 250;

(F) An amount equal to all amounts included in such total pursuant to the provisions of Sections 402(a), 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;

(G) The valuation limitation amount;

(H) 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;

10400SB2111ham002 -92- LRB104 09876 RTM 29432 a (I) An amount equal to all amounts included in such total pursuant to the provisions of Section 111 of the Internal Revenue Code as a recovery of items previously deducted from adjusted gross income in the computation of taxable income;

(J) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in a River Edge Redevelopment Zone or zones created under the River Edge Redevelopment Zone Act, and conducts substantially all of its operations in a River Edge Redevelopment Zone or zones.

This subparagraph (J) is exempt from the provisions of Section 250;

(K) An amount equal to those dividends included in such total that were paid by a corporation that conducts business operations in a federally designated Foreign Trade Zone or Sub-Zone and that is designated a High Impact Business located in Illinois;

provided that dividends eligible for the deduction provided in subparagraph (J) of paragraph (2) of this subsection shall not be eligible for the deduction provided under this subparagraph (K);

(L) For taxable years ending after December 31, 1983, an amount equal to all social security benefits and railroad retirement benefits included in such total pursuant to Sections 72(r) and 86 of the 10400SB2111ham002 -93- LRB104 09876 RTM 29432 a Internal Revenue Code;

(M) With the exception of any amounts subtracted under subparagraph (N), an amount equal to the sum of all amounts disallowed as deductions by (i) Sections 171(a)(2) and 265(a)(2) of the Internal Revenue Code, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(a)(1) 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, 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;

(N) 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;

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 10400SB2111ham002 -94- LRB104 09876 RTM 29432 a net of bond premium amortization;

(O) An amount equal to any contribution made to a job training project established pursuant to the Tax Increment Allocation Redevelopment Act;

(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;

(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;

(R) An amount equal to the amount of any federal or State bonus paid to veterans of the Persian Gulf War;

(S) An amount, to the extent included in adjusted gross income, equal to the amount of a contribution made in the taxable year on behalf of the taxpayer to a medical care savings account established under the Medical Care Savings Account Act or the Medical Care Savings Account Act of 2000 to the extent the 10400SB2111ham002 -95- LRB104 09876 RTM 29432 a contribution is accepted by the account administrator as provided in that Act;

(T) An amount, to the extent included in adjusted gross income, equal to the amount of interest earned in the taxable year on a medical care savings account established under the Medical Care Savings Account Act or the Medical Care Savings Account Act of 2000 on behalf of the taxpayer, other than interest added pursuant to item (D-5) of this paragraph (2);

(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 the taxpayer under the Nursing Home Grant Assistance Act during the taxpayer's taxable years 1992 and 1993;

(V) Beginning with tax years ending on or after December 31, 1995 and ending with tax years ending on or before December 31, 2004, an amount equal to the amount paid by a taxpayer who is a self-employed taxpayer, a partner of a partnership, or a shareholder in a Subchapter S corporation for health insurance or long-term care insurance for that taxpayer or that taxpayer's spouse or dependents, to the extent that the amount paid for that health insurance or long-term care insurance may be deducted under Section 213 of the Internal Revenue Code, has not been deducted on 10400SB2111ham002 -96- LRB104 09876 RTM 29432 a the federal income tax return of the taxpayer, and does not exceed the taxable income attributable to that taxpayer's income, self-employment income, or Subchapter S corporation income;

except that no deduction shall be allowed under this item (V) if the taxpayer is eligible to participate in any health insurance or long-term care insurance plan of an employer of the taxpayer or the taxpayer's spouse.

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 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;

(W) For taxable years beginning on or after January 1, 1998, all amounts included in the taxpayer's federal gross income in the taxable year from amounts converted from a regular IRA to a Roth IRA.

This paragraph is exempt from the provisions of Section 250;

(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 10400SB2111ham002 -97- LRB104 09876 RTM 29432 a 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, however, this subtraction from federal adjusted gross income does not apply to assets acquired with such assets or with the proceeds from the sale of such assets;

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 victim.

The amount of and the eligibility for any public assistance, benefit, or similar entitlement is not affected by the inclusion 10400SB2111ham002 -98- LRB104 09876 RTM 29432 a of items (i) and (ii) of this paragraph in gross income for federal income tax purposes.

This paragraph is exempt from the provisions of Section 250;

(Y) For taxable years beginning on or after January 1, 2002 and ending on or before December 31, 2004, moneys contributed in the taxable year to a College Savings Pool account under Section 16.5 of the State Treasurer Act, 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 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).

For purposes of this subparagraph, contributions made by an employer on behalf of an employee, or matching contributions made by an employee, shall be treated as made by the employee.

This subparagraph (Y) is exempt from the provisions of Section 250;

(Z) For taxable years 2001 and thereafter, for the taxable year in which the bonus depreciation deduction 10400SB2111ham002 -99- LRB104 09876 RTM 29432 a 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:

(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;

(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);

and (3) for taxable years ending after December 31, 2005:

(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);

(ii) for property on which a bonus depreciation deduction of 50% of the adjusted basis was taken, "x" equals "y" multiplied by 1.0;

10400SB2111ham002 -100- LRB104 09876 RTM 29432 a (iii) for property on which a bonus depreciation deduction of 100% of the adjusted basis was taken in a taxable year ending on or after December 31, 2021, "x" equals the depreciation deduction that would be allowed on that property if the taxpayer had made the election under Section 168(k)(7) of the Internal Revenue Code to not claim bonus depreciation on that property;

and (iv) for property on which a bonus depreciation deduction of a percentage other than 30%, 50% or 100% of the adjusted basis was taken in a taxable year ending on or after December 31, 2021, "x" equals "y" multiplied by 100 times the percentage bonus depreciation on the property (that is, 100(bonus%)) and then divided by 100 times 1 minus the percentage bonus depreciation on the property (that is, 100(1-bonus%)).

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.

This subparagraph (Z) is exempt from the provisions of 10400SB2111ham002 -101- LRB104 09876 RTM 29432 a Section 250;

(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.

If the taxpayer continues to own property through the last day of the last tax year for which a subtraction is allowed with respect to that property under subparagraph (Z) 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.

The taxpayer is allowed to take the deduction under this subparagraph only once with respect to any one piece of property.

This subparagraph (AA) is exempt from the provisions of Section 250;

(BB) Any amount included in adjusted gross income, other than salary, received by a driver in a ridesharing arrangement using a motor vehicle;

(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 10400SB2111ham002 -102- LRB104 09876 RTM 29432 a 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 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 (CC) is exempt from the provisions of Section 250;

(DD) 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 10400SB2111ham002 -103- LRB104 09876 RTM 29432 a 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-17) for interest paid, accrued, or incurred, directly or indirectly, to the same person.

This subparagraph (DD) is exempt from the provisions of Section 250;

(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 10400SB2111ham002 -104- LRB104 09876 RTM 29432 a the same foreign person.

This subparagraph (EE) is exempt from the provisions of Section 250;

(FF) An amount equal to any amount awarded to the taxpayer during the taxable year by the Court of Claims under subsection (c) of Section 8 of the Court of Claims Act for time unjustly served in a State prison.

This subparagraph (FF) is exempt from the provisions of Section 250;

(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.

If a taxpayer makes the election provided for by this subparagraph (GG), the insurer to which the premiums were paid must add back to income the amount subtracted by the taxpayer pursuant to this subparagraph (GG).

This subparagraph (GG) is exempt from the provisions of Section 250;

(HH) For taxable years beginning on or after January 1, 2018 and prior to January 1, 2028, a maximum 10400SB2111ham002 -105- LRB104 09876 RTM 29432 a of $10,000 contributed in the taxable year to a qualified ABLE account under Section 16.6 of the State Treasurer Act, except that amounts excluded from gross income under Section 529(c)(3)(C)(i) or Section 529A(c)(1)(C) of the Internal Revenue Code shall not be considered moneys contributed under this subparagraph (HH).

For purposes of this subparagraph (HH), contributions made by an employer on behalf of an employee, or matching contributions made by an employee, shall be treated as made by the employee;

(II) For taxable years that begin on or after January 1, 2021 and begin before January 1, 2026, the amount that is included in the taxpayer's federal adjusted gross income pursuant to Section 61 of the Internal Revenue Code as discharge of indebtedness attributable to student loan forgiveness and that is not excluded from the taxpayer's federal adjusted gross income pursuant to paragraph (5) of subsection (f) of Section 108 of the Internal Revenue Code;

(JJ) For taxable years beginning on or after January 1, 2023, for any cannabis establishment operating in this State and licensed under the Cannabis Regulation and Tax Act or any cannabis cultivation center or medical cannabis dispensing organization operating in this State and licensed under the Compassionate Use of Medical Cannabis 10400SB2111ham002 -106- LRB104 09876 RTM 29432 a Program Act, an amount equal to the deductions that were disallowed under Section 280E of the Internal Revenue Code for the taxable year and that would not be added back under this subsection.

The provisions of this subparagraph (JJ) are exempt from the provisions of Section 250;

(KK) To the extent includible in gross income for federal income tax purposes, any amount awarded or paid to the taxpayer as a result of a judgment or settlement for fertility fraud as provided in Section 15 of the Illinois Fertility Fraud Act, donor fertility fraud as provided in Section 20 of the Illinois Fertility Fraud Act, or similar action in another state;

(LL) For taxable years beginning on or after January 1, 2026, if the taxpayer is a qualified worker, as defined in the Workforce Development through Charitable Loan Repayment Act, an amount equal to the amount included in the taxpayer's federal adjusted gross income that is attributable to student loan repayment assistance received by the taxpayer during the taxable year from a qualified community foundation under the provisions of the Workforce Development through Charitable Loan Repayment Act.

This subparagraph (LL) is exempt from the provisions of Section 250;

and 10400SB2111ham002 -107- LRB104 09876 RTM 29432 a (MM) For taxable years beginning on or after January 1, 2025, if the taxpayer is an eligible resident as defined in the Medical Debt Relief Act, an amount equal to the amount included in the taxpayer's federal adjusted gross income that is attributable to medical debt relief received by the taxpayer during the taxable year from a nonprofit medical debt relief coordinator under the provisions of the Medical Debt Relief Act.

This subparagraph (MM) is exempt from the provisions of Section 250;

and .

(NN) An amount eligible to be taken as a loss in the taxable year under the Extremely High Wealth Mark-to-Market Tax Act that is not otherwise deducted under this Act.

(b) Corporations.

(1) In general.

In the case of a corporation, base income means an amount equal to the taxpayer's taxable income for the taxable year as modified by paragraph (2).

(2) Modifications.

The taxable income referred to in paragraph (1) shall be modified by adding thereto the sum of the following amounts:

(A) An amount equal to all amounts paid or accrued to the taxpayer as interest and all distributions received from regulated investment companies during the taxable year to the extent excluded from gross 10400SB2111ham002 -108- LRB104 09876 RTM 29432 a income in the computation of taxable income;

(B) An amount equal to the amount of tax imposed by this Act to the extent deducted from gross income in the computation of taxable income for the taxable year;

(C) In the case of a regulated investment company, an amount equal to the excess of (i) the net long-term capital gain for the taxable year, over (ii) the amount of the capital gain dividends designated as such in accordance with Section 852(b)(3)(C) of the Internal Revenue Code and any amount designated under Section 852(b)(3)(D) of the Internal Revenue Code, attributable to the taxable year (this amendatory Act of 1995 (Public Act 89-89) is declarative of existing law and is not a new enactment);

(D) The amount of any net operating loss deduction taken in arriving at taxable income, other than a net operating loss carried forward from a taxable year ending prior to December 31, 1986;

(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 10400SB2111ham002 -109- LRB104 09876 RTM 29432 a subtraction modifications in such earlier taxable year, with the following limitations applied in the order that they are listed:

(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) 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;

For taxable years in which there is a net operating loss carryback or carryforward from more than one other taxable year ending prior to December 31, 1986, the addition modification provided in this subparagraph (E) shall be the sum of the amounts computed independently under the preceding provisions of this subparagraph (E) for each such taxable year;

(E-5) For taxable years ending after December 31, 1997, an amount equal to any eligible remediation costs that the corporation deducted in computing 10400SB2111ham002 -110- LRB104 09876 RTM 29432 a adjusted gross income and for which the corporation claims a credit under subsection (l) of Section 201;

(E-10) For taxable years 2001 and thereafter, an amount equal to the bonus depreciation deduction taken on the taxpayer's federal income tax return for the taxable year under subsection (k) of Section 168 of the Internal Revenue Code;

(E-11) 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 (E-10), then an amount equal to the aggregate amount of the deductions taken in all taxable years under subparagraph (T) with respect to that property.

If the taxpayer continues to own property through the last day of the last tax year for which a subtraction is allowed with respect to that property under subparagraph (T) and for which the taxpayer was allowed in any taxable year to make a subtraction modification under subparagraph (T), then an amount equal to that subtraction modification.

The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;

(E-12) An amount equal to the amount otherwise allowed as a deduction in computing base income for 10400SB2111ham002 -111- LRB104 09876 RTM 29432 a 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.

For taxable years ending on and after December 31, 2025, for purposes of applying this 10400SB2111ham002 -112- LRB104 09876 RTM 29432 a paragraph in the case of a taxpayer to which Section 163(j) of the Internal Revenue Code applies for the taxable year, the reduction in the amount of interest for which a deduction is allowed by reason of Section 163(j) shall be treated as allocable first to persons who are not foreign persons referred to in this paragraph and then to such foreign persons.

For taxable years ending before December 31, 2025, this paragraph shall not apply to the following:

(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 (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:

(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 10400SB2111ham002 -113- LRB104 09876 RTM 29432 a 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 (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 (iv) an item of interest paid, accrued, or incurred, directly or indirectly, to a person if the taxpayer establishes by clear and convincing evidence that the adjustments are unreasonable;

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).

For taxable years ending on or after December 31, 2025, this paragraph shall not apply to the following:

(i) 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:

(a) the person, during the same taxable 10400SB2111ham002 -114- LRB104 09876 RTM 29432 a 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 (ii) an item of interest paid, accrued, or incurred, directly or indirectly, to a person if the taxpayer establishes by clear and convincing evidence that the adjustments are unreasonable;

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).

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;