Illinois 93rd Regular Session Status: Passed Senate 1 D cosponsors

SB 362 — INCOME TAX ACT-PREPAID TUITION

Last action — Session Sine Die

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

This bill died with 93rd Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2003, moneys contributed during the taxable year by the taxpayer for the purchase of an Illinois prepaid tuition contract, excluding moneys rolled over from another qualified tuition program account, may be deducted from the taxpayer's federal adjusted gross income in arriving at base income for Illinois income tax purposes. Exempts the deduction from the sunset provisions of the Act. Amends the Illinois Prepaid Tuition Act to include a reference to the deduction. Effective immediately.

Bill Text

What changed in the latest version

935 added · 950 removed

Plain-language change summary

In the latest version of Bill SB 362, certain lines of text have been added, clarifying the definition of "base income" for corporations and how it should be modified. These changes help ensure that taxable income calculations are clearer and more consistent. This matters because it can potentially simplify the tax process for corporations, making it easier for them to understand their tax obligations. Overall, clearer tax guidelines can lead to better compliance and fewer disputes.

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093_SB0362 LRB093 02033 SJM 03449 b AN ACT concerning taxes.
SB362 Engrossed LRB093 02033 SJM 03449 b AN ACT concerning taxes.
(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 -2- LRB093 02033 SJM 03449 b 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.
(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 SB362 Engrossed -2- LRB093 02033 SJM 03449 b 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.
a --- (D-16) If the taxpayer reports a capital gain -3- LRB093 02033 SJM 03449 b or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer 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_- The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;_- and ______ -----)- For taxable years beginning on or after January 1, 2002, 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 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);
a --- (D-16) If the taxpayer reports a capital gain SB362 Engrossed -3- LRB093 02033 SJM 03449 b or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer 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_- The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;_- and ______ -----)- For taxable years beginning on or after January 1, 2002, 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 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);
(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 -4- LRB093 02033 SJM 03449 b thereafter for annual training performed pursuant to Sections 502 and 503, Title 32, United States Code as a member of the Illinois National Guard.
(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 SB362 Engrossed -4- LRB093 02033 SJM 03449 b thereafter for annual training performed pursuant to Sections 502 and 503, Title 32, United States Code as a member of the Illinois National Guard.
-5- LRB093 02033 SJM 03449 b (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;
SB362 Engrossed -5- LRB093 02033 SJM 03449 b (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;
(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(2) of the Internal Revenue Code of 1954, as now or hereafter amended, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(1) of the Internal Revenue Code of 1954, as now -6- LRB093 02033 SJM 03449 b or hereafter amended;
(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(2) of the Internal Revenue Code of 1954, as now or hereafter amended, and all amounts of expenses allocable to interest and disallowed as deductions by Section 265(1) of the Internal Revenue Code of 1954, as now SB362 Engrossed -6- LRB093 02033 SJM 03449 b or hereafter amended;
-7- LRB093 02033 SJM 03449 b (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 contribution is accepted by the account administrator as provided in that Act;
SB362 Engrossed -7- LRB093 02033 SJM 03449 b (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 contribution is accepted by the account administrator as provided in that Act;
(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 -8- LRB093 02033 SJM 03449 b Revenue Code of 1986, has not been deducted on 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;
(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 SB362 Engrossed -8- LRB093 02033 SJM 03449 b Revenue Code of 1986, has not been deducted on 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;
(X) For taxable year 1999 and thereafter, an amount equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related -9- LRB093 02033 SJM 03449 b 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;
(X) For taxable year 1999 and thereafter, an amount equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related SB362 Engrossed -9- LRB093 02033 SJM 03449 b 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;
-10- LRB093 02033 SJM 03449 b (Z) For taxable years 2001 and thereafter, for the taxable year in which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) 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:
SB362 Engrossed -10- LRB093 02033 SJM 03449 b (Z) For taxable years 2001 and thereafter, for the taxable year in which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) 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:
--- (AA) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer 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 -11- LRB093 02033 SJM 03449 b addition modification.
--- (AA) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer 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 SB362 Engrossed -11- LRB093 02033 SJM 03449 b addition modification.
_____ ____________x______________________o_____________ _________________,________________________d___________ _________________t______________________u_____________ _________________t______________________e_____________ _________________T______________________t_____________ ____________________g___________________d_____________ _________________f________________________C___________ _________________e______________________d_____________ _________________._______________________e____________ __________________S_____________________c__.
_____ ____________x______________________o_____________ _________________a______________________b_____________ _________________e______________________e_____________ _________________p______________________n_____________ __________________a_____________________i_____________ _________________p______________________e_____________ _________________i_______________________t____________ _________________s______________________d_____________ __________________t_____________________)__ (b) Corporations.
(b) Corporations.
-12- LRB093 02033 SJM 03449 b (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);
(C) In the case of a regulated investment SB362 Engrossed -12- LRB093 02033 SJM 03449 b 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);
(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 -13- LRB093 02033 SJM 03449 b (ii) the addition modification relating to the net operating loss carried back or forward to the taxable year from any taxable year ending prior to December 31, 1986 shall not exceed the amount of such carryback or carryforward;
(i) the addition modification relating to the net operating loss carried back or forward to the 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 SB362 Engrossed -13- LRB093 02033 SJM 03449 b 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;
and (E-11) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer 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 -14- LRB093 02033 SJM 03449 b that property_- The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;
and (E-11) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer 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_- SB362 Engrossed -14- LRB093 02033 SJM 03449 b The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;
(J) An amount equal to all amounts included in -15- LRB093 02033 SJM 03449 b such total which are exempt from taxation by this State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States;
(J) An amount equal to all amounts included in such total which are exempt from taxation by this SB362 Engrossed -15- LRB093 02033 SJM 03449 b State either by reason of its statutes or Constitution or by reason of the Constitution, treaties or statutes of the United States;
To determine the portion of a loan or loans that is secured by property eligible for a Section 201(f) investment -16- LRB093 02033 SJM 03449 b credit to the borrower, the entire principal amount of the loan or loans between the taxpayer and the borrower should be divided into the basis of the Section 201(f) investment credit property which secures the loan or loans, using for this purpose the original basis of such property on the date that it was placed in service in the Enterprise Zone.
To determine the portion of a loan or loans that is secured by property eligible for a Section 201(f) investment credit to the borrower, the entire principal amount SB362 Engrossed -16- LRB093 02033 SJM 03449 b of the loan or loans between the taxpayer and the borrower should be divided into the basis of the Section 201(f) investment credit property which secures the loan or loans, using for this purpose the original basis of such property on the date that it was placed in service in the Enterprise Zone.
No taxpayer that is eligible for the deduction provided in subparagraph (M) of paragraph (2) of this subsection shall be eligible for the deduction provided under this subparagraph -17- LRB093 02033 SJM 03449 b (M-1).
No taxpayer that is eligible for the deduction provided in subparagraph (M) of paragraph (2) of this subsection shall be eligible for the deduction provided under this subparagraph (M-1).
The subtraction modification available to taxpayers in any year under this subsection shall be that portion of the total interest paid by the borrower with respect to such loan attributable to the eligible property as calculated under the previous sentence;
The subtraction modification available to SB362 Engrossed -17- LRB093 02033 SJM 03449 b taxpayers in any year under this subsection shall be that portion of the total interest paid by the borrower with respect to such loan attributable to the eligible property as calculated under the previous sentence;
plus (ii) 100% of the amount by which dividends, included in taxable income and received, including, for taxable years ending on or after December 31, -18- LRB093 02033 SJM 03449 b 1988, dividends received or deemed received or paid or deemed paid under Sections 951 through 964 of the Internal Revenue Code, from any such corporation specified in clause (i) that would but for the provisions of Section 1504 (b) (3) of the Internal Revenue Code be treated as a member of the affiliated group which includes the dividend recipient, exceed the amount of the modification provided under subparagraph (G) of paragraph (2) of this subsection (b) which is related to such dividends;
plus (ii) 100% of the amount by which dividends, included in taxable income and received, including, for taxable years ending on or after December 31, 1988, dividends received or deemed received or paid SB362 Engrossed -18- LRB093 02033 SJM 03449 b or deemed paid under Sections 951 through 964 of the Internal Revenue Code, from any such corporation specified in clause (i) that would but for the provisions of Section 1504 (b) (3) of the Internal Revenue Code be treated as a member of the affiliated group which includes the dividend recipient, exceed the amount of the modification provided under subparagraph (G) of paragraph (2) of this subsection (b) which is related to such dividends;
(S) For taxable years ending on or after December 31, 1997, in the case of a Subchapter S corporation, an amount equal to all amounts of -19- LRB093 02033 SJM 03449 b income allocable to a shareholder subject to the Personal Property Tax Replacement Income Tax imposed by subsections (c) and (d) of Section 201 of this Act, including amounts allocable to organizations exempt from federal income tax by reason of Section 501(a) of the Internal Revenue Code.
(S) For taxable years ending on or after December 31, 1997, in the case of a Subchapter S corporation, an amount equal to all amounts of income allocable to a shareholder subject to the SB362 Engrossed -19- LRB093 02033 SJM 03449 b Personal Property Tax Replacement Income Tax imposed by subsections (c) and (d) of Section 201 of this Act, including amounts allocable to organizations exempt from federal income tax by reason of Section 501(a) of the Internal Revenue Code.
The aggregate amount deducted under this subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on that property on the taxpayer's federal income tax return under -20- LRB093 02033 SJM 03449 b subsection (k) of Section 168 of the Internal Revenue Code;
The aggregate amount deducted under this subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal SB362 Engrossed -20- LRB093 02033 SJM 03449 b Revenue Code;
The taxpayer is allowed to take the deduction under this subparagraph only once with respect to any one piece of property;_____ ____________a______________________o_____________ _________________,________________________d___________ _________________t______________________u_____________ _________________t______________________e_____________ _________________T______________________t_____________ ____________________g___________________d_____________ _________________f________________________C___________ _________________e______________________d_____________ __________________T______________________e____________ __________________S_____________________c__.
The taxpayer is allowed to take the deduction under this subparagraph only once with respect to any one piece of property;_____ ____________x______________________g_____________ _________________a______________________b_____________ _________________d______________________y_____________ _________________e______________________i_____________ __________________a_____________________i_____________ _________________p______________________e_____________ _________________i_______________________t____________ _________________a______________________e_____________ __________________t_____________________._ (3) Special rule.
(3) Special rule.
Subject to the provisions of paragraph (3), the taxable income referred to in -21- LRB093 02033 SJM 03449 b paragraph (1) shall be modified by adding thereto the sum of the following amounts:
Subject to the provisions of paragraph (3), 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 or dividends during the taxable year to the extent excluded from gross income in the computation of taxable income;
SB362 Engrossed -21- LRB093 02033 SJM 03449 b (A) An amount equal to all amounts paid or accrued to the taxpayer as interest or dividends during the taxable year to the extent excluded from gross income in the computation of taxable income;
(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 -22- LRB093 02033 SJM 03449 b 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;
(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 SB362 Engrossed -22- LRB093 02033 SJM 03449 b that net operating loss and which was taken into account in calculating the base income of an earlier taxable year, and (ii) the addition modification relating to the net operating loss carried back or forward to the taxable year from any taxable year ending prior to December 31, 1986 shall not exceed the amount of such carryback or carryforward;
(G-5) For taxable years ending after December 31, 1997, an amount equal to any eligible remediation costs that the trust or estate deducted in computing adjusted gross income and for which the trust or estate claims a credit under subsection (l) -23- LRB093 02033 SJM 03449 b of Section 201;
(G-5) For taxable years ending after December 31, 1997, an amount equal to any eligible remediation costs that the trust or estate deducted in computing adjusted gross income and for which the trust or estate claims a credit under subsection (l) of Section 201;
(G-10) For taxable years 2001 and thereafter, an amount equal to the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on the taxpayer's federal income tax return for the taxable year under subsection (k) of Section 168 of the Internal Revenue Code;
(G-10) For taxable years 2001 and thereafter, SB362 Engrossed -23- LRB093 02033 SJM 03449 b an amount equal to the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on the taxpayer's federal income tax return for the taxable year under subsection (k) of Section 168 of the Internal Revenue Code;
(J) An amount equal to the amount of any tax -24- LRB093 02033 SJM 03449 b imposed by this Act which was refunded to the taxpayer and included in such total for the taxable year;
(J) 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 SB362 Engrossed -24- LRB093 02033 SJM 03449 b year;
(N) An amount equal to any contribution made -25- LRB093 02033 SJM 03449 b to a job training project established pursuant to the Tax Increment Allocation Redevelopment Act;
(N) An amount equal to any contribution made to a job training project established pursuant to the Tax Increment Allocation Redevelopment Act;
(O) 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;
SB362 Engrossed -25- LRB093 02033 SJM 03449 b (O) 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;
(Q) For taxable year 1999 and thereafter, an amount equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including, but not limited to, interest on the proceeds receivable as insurance -26- LRB093 02033 SJM 03449 b under policies issued to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime by European insurance companies immediately prior to and during World War II;
(Q) For taxable year 1999 and thereafter, an amount equal to the amount of any (i) distributions, to the extent includible in gross income for federal income tax purposes, made to the taxpayer because of his or her status as a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime or as an heir of the victim and (ii) items of income, to the extent includible in gross income for federal income tax purposes, attributable to, derived from or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of persecution for racial or religious reasons by Nazi Germany or any other Axis regime immediately prior to, during, and immediately after World War II, including, but not limited to, interest on the proceeds receivable as insurance under policies issued to a victim of persecution for racial or religious reasons by Nazi Germany or any SB362 Engrossed -26- LRB093 02033 SJM 03449 b other Axis regime by European insurance companies immediately prior to and during World War II;
(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 (30% of the adjusted basis of the qualified property) was taken in any year under subsection (k) of Section 168 of -27- LRB093 02033 SJM 03449 b the Internal Revenue Code, but not including the bonus depreciation deduction;
(1) "y" equals the amount of the depreciation deduction taken for the taxable year on the taxpayer's federal income tax return on property for which the bonus depreciation deduction (30% of the adjusted basis of the qualified property) was taken in any year under subsection (k) of Section 168 of the Internal Revenue Code, but not including the bonus depreciation deduction;
and (2) "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429).
and SB362 Engrossed -27- LRB093 02033 SJM 03449 b (2) "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429).
The taxpayer is allowed to take the deduction under this subparagraph only once with respect to any one piece of property;_____ ____________a______________________o_____________ _________________,________________________d___________ _________________t______________________u_____________ _________________t______________________e_____________ _________________T______________________t_____________ ____________________g___________________d_____________ _________________f________________________C___________ _________________e______________________d_____________ __________________T______________________e____________ __________________S_____________________c__.
The taxpayer is allowed to take the deduction under this subparagraph only once with respect to any one piece of property;_____ ____________a______________________o_____________ _________________a______________________b_____________ _________________e______________________e_____________ _________________p______________________n_____________ __________________a_____________________i_____________ _________________p______________________e_____________ _________________i_______________________t____________ _________________s______________________d_____________ __________________t_____________________._ (3) Limitation.
(3) Limitation.
The amount of any modification otherwise required under this subsection shall, under regulations prescribed by the Department, be adjusted by any amounts included therein which were properly paid, SB362 Engrossed -28- LRB093 02033 SJM 03449 b credited, or required to be distributed, or permanently set aside for charitable purposes pursuant to Internal Revenue Code Section 642(c) during the taxable year.
The amount of any modification -28- LRB093 02033 SJM 03449 b otherwise required under this subsection shall, under regulations prescribed by the Department, be adjusted by any amounts included therein which were properly paid, credited, or required to be distributed, or permanently set aside for charitable purposes pursuant to Internal Revenue Code Section 642(c) during the taxable year.
and -29- LRB093 02033 SJM 03449 b (D-6) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-5), then an amount equal to the aggregate amount of the deductions taken in all taxable years under subparagraph (O) with respect to that property_- The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;
and (D-6) If the taxpayer reports a capital gain or loss on the taxpayer's federal income tax return for the taxable year based on a sale or transfer of SB362 Engrossed -29- LRB093 02033 SJM 03449 b property for which the taxpayer was required in any taxable year to make an addition modification under subparagraph (D-5), then an amount equal to the aggregate amount of the deductions taken in all taxable years under subparagraph (O) with respect to that property_- The taxpayer is required to make the addition modification under this subparagraph only once with respect to any one piece of property;
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(H) Any income of the partnership which constitutes personal service income as defined in Section 1348 (b) (1) of the Internal Revenue Code (as in effect December 31, 1981) or a reasonable -30- LRB093 02033 SJM 03449 b allowance for compensation paid or accrued for services rendered by partners to the partnership, whichever is greater;
(H) Any income of the partnership which constitutes personal service income as defined in Section 1348 (b) (1) of the Internal Revenue Code (as in effect December 31, 1981) or a reasonable allowance for compensation paid or accrued for services rendered by partners to the partnership, whichever is greater;
(I) An amount equal to all amounts of income distributable to an entity subject to the Personal Property Tax Replacement Income Tax imposed by subsections (c) and (d) of Section 201 of this Act including amounts distributable to organizations exempt from federal income tax by reason of Section 501(a) of the Internal Revenue Code;
SB362 Engrossed -30- LRB093 02033 SJM 03449 b (I) An amount equal to all amounts of income distributable to an entity subject to the Personal Property Tax Replacement Income Tax imposed by subsections (c) and (d) of Section 201 of this Act including amounts distributable to organizations exempt from federal income tax by reason of Section 501(a) of the Internal Revenue Code;
-31- LRB093 02033 SJM 03449 b (M) 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;
(M) An amount equal to those dividends included in such total that were paid by a corporation that conducts business operations in a SB362 Engrossed -31- LRB093 02033 SJM 03449 b federally designated Foreign Trade Zone or Sub-Zone and that is designated a High Impact Business located in Illinois;
and (2) "x" equals "y" multiplied by 30 and -32- LRB093 02033 SJM 03449 b then divided by 70 (or "y" multiplied by 0.429).
and (2) "x" equals "y" multiplied by 30 and then divided by 70 (or "y" multiplied by 0.429).
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 (30% of the adjusted basis of the qualified property) taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code;
The aggregate amount deducted under this SB362 Engrossed -32- LRB093 02033 SJM 03449 b subparagraph in all taxable years for any one piece of property may not exceed the amount of the bonus depreciation deduction (30% of the adjusted basis of the qualified property) taken on that property on the taxpayer's federal income tax return under subsection (k) of Section 168 of the Internal Revenue Code;
____________x______________________g_____________ _________________,________________________d___________ _________________h______________________r_____________ _________________t______________________e_____________ ___________________T_____________________t____________ __________________g_____________________e_____________ _________________o______________________u_____________ _________________d________________________u___________ _________________.______________________s_____________ __________________S_____________________c__.
____________a______________________o_____________ _________________a______________________b_____________ _________________e______________________e_____________ _________________p______________________n_____________ __________________a_____________________i_____________ _________________p______________________e_____________ _________________i_______________________t____________ _________________s______________________d_____________ __________________t_____________________._ (e) Gross income;
(e) Gross income;
Subject to the provisions of paragraph (2) and subsection (b) (3), for purposes of this Section and Section 803(e), a taxpayer's gross -33- LRB093 02033 SJM 03449 b income, adjusted gross income, or taxable income for the taxable year shall mean the amount of gross income, adjusted gross income or taxable income properly reportable for federal income tax purposes for the taxable year under the provisions of the Internal Revenue Code.
Subject to the provisions of paragraph (2) and subsection (b) (3), for purposes of this Section and Section 803(e), a taxpayer's gross income, adjusted gross income, or taxable income for the taxable year shall mean the amount of gross income, adjusted gross income or taxable income properly reportable for federal income tax purposes for the SB362 Engrossed -33- LRB093 02033 SJM 03449 b taxable year under the provisions of the Internal Revenue Code.
In the -34- LRB093 02033 SJM 03449 b case of a life insurance company subject to the tax imposed by Section 801 of the Internal Revenue Code, life insurance company taxable income, plus the amount of distribution from pre-1984 policyholder surplus accounts as calculated under Section 815a of the Internal Revenue Code;
In the case of a life insurance company subject to the tax imposed by Section 801 of the Internal Revenue Code, life insurance company taxable income, plus the amount of distribution from pre-1984 policyholder SB362 Engrossed -34- LRB093 02033 SJM 03449 b surplus accounts as calculated under Section 815a of the Internal Revenue Code;
In the case of a cooperative corporation or association, the taxable -35- LRB093 02033 SJM 03449 b income of such organization determined in accordance with the provisions of Section 1381 through 1388 of the Internal Revenue Code;
In the case of a cooperative corporation or association, the taxable income of such organization determined in accordance with the provisions of Section 1381 through 1388 of the Internal Revenue Code;
In the case of:
In the case SB362 Engrossed -35- LRB093 02033 SJM 03449 b of:
(A) The sum of the pre-August 1, 1969 -36- LRB093 02033 SJM 03449 b appreciation amounts (to the extent consisting of gain reportable under the provisions of Section 1245 or 1250 of the Internal Revenue Code) for all property in respect of which such gain was reported for the taxable year;
(A) The sum of the pre-August 1, 1969 appreciation amounts (to the extent consisting of gain reportable under the provisions of Section 1245 or 1250 of the Internal Revenue Code) for all property in respect of which such gain was reported SB362 Engrossed -36- LRB093 02033 SJM 03449 b for the taxable year;
(B) If the fair market value of property referred to in paragraph (1) was not readily ascertainable on August 1, 1969, the pre-August 1, 1969 appreciation amount for such property is that amount which bears the same ratio to the total gain reported in respect of the property for federal income tax purposes for the taxable year, as the number of full calendar months in that part of the -37- LRB093 02033 SJM 03449 b taxpayer's holding period for the property ending July 31, 1969 bears to the number of full calendar months in the taxpayer's entire holding period for the property.
(B) If the fair market value of property referred to in paragraph (1) was not readily ascertainable on August 1, 1969, the pre-August 1, 1969 appreciation amount for such property is that amount which bears the same ratio to the total gain reported in respect of the property for federal income tax purposes for the taxable year, as the number of full calendar months in that part of the taxpayer's holding period for the property ending July 31, 1969 bears to the number of full calendar months in the taxpayer's entire holding period for the property.
(C) The Department shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph.
SB362 Engrossed -37- LRB093 02033 SJM 03449 b (C) The Department shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph.
The Illinois Prepaid Tuition Act is amended by changing Section 55 as follows:
The Illinois Prepaid Tuition Act is amended by adding Section 55.1 as follows:
(110 ILCS 979/55) Sec.
(110 ILCS 979/55.1 new) _e_____________________a______________________a_____________ _____n_____________________a______________________n_____________ _____b_____________________c_______________________t____________ _____h_____________________e______________________i_____________ _____o_____________________f________________________f___________ _____e_____________________c______________________e_____________ ______m____________________m______________________j_____________ SB362 Engrossed -38- LRB093 02033 SJM 03449 b _____e_____________________t______________________i_____________ ____ Section 99.
55.
Tax exemption.
The assets of the Illinois Prepaid Tuition Trust Fund and its income and operation shall be exempt from all taxation by the State of Illinois and any -38- LRB093 02033 SJM 03449 b of its subdivisions.
The accrued earnings of Illinois prepaid tuition contracts once disbursed on behalf of an eligible beneficiary shall be similarly exempt from all taxation by the State of Illinois and any of its subdivisions, so long as they are used for educational purposes in accordance with the provisions of an Illinois prepaid tuition contract.
___________________t_____________ _____n_____________________a________________________c___________ _____g_____________________b______________________e_____________ _____l_____________________o_______________________f____________ _____d_____________________m______________________)_____________ _____I_____________________d_________________________f__________ _____y_____________________s______________________n_____________ _____e_____________________a________ The provisions of this Section are exempt from the provisions of Section 250 of the Illinois Income Tax Act.
(Source:
P.A.
90-546, eff.
12-1-97;
91-867, eff.
6-22-00.) Section 99.
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Action History

  1. Session Sine Die

  2. Pursuant to Senate Rule 3-9(b) / Referred to Rules

  3. House Floor Amendment No. 2 Motion to Concur Referred to Rules

  4. House Floor Amendment No. 2 Motion to Concur Filed with Secretary Sen. James F. Clayborne, Jr.

  5. House Committee Amendment No. 1 Motion to Concur Referred to Rules

  6. House Committee Amendment No. 1 Motion to Concur Filed with Secretary Sen. James F. Clayborne, Jr.

  7. Placed on Calendar Order of Concurrence House Amendment(s) 01,02 - May 31, 2003

  8. Secretary's Desk - Concurrence House Amendment(s) 01,02

  9. Third Reading - Short Debate - Passed 115-000-001

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

  11. House Floor Amendment No. 2 Adopted by Voice Vote

  12. House Floor Amendment No. 2 Recommends Be Adopted Rules Committee; 005-000-000

  13. Held on Calendar Order of Second Reading - Short Debate

  14. Second Reading - Short Debate

  15. Third Reading/Final Action Deadline Extended-9(b) May 31, 2003

  16. House Floor Amendment No. 2 Referred to Rules Committee

  17. House Floor Amendment No. 2 Filed with Clerk by Rep. Robert S. Molaro

  18. Committee/3rd Reading Deadline Extended-Rule 9(b); May 23, 2003

  19. Alternate Chief Sponsor Changed to Rep. Robert S. Molaro

  20. Placed on Calendar 2nd Reading - Short Debate

  21. Do Pass as Amended / Short Debate Revenue Committee; 009-000-000

  22. House Committee Amendment No. 1 Adopted by Voice Vote; Revenue Sub-committee

  23. House Committee Amendment No. 1 Filed with Clerk by Revenue Committee

  24. Added Alternate Co-Sponsor Rep. Mary K. O'Brien

  25. Added Alternate Co-Sponsor Rep. Gary Forby

  26. Added Alternate Co-Sponsor Rep. Michael K. Smith

  27. Added Alternate Co-Sponsor Rep. Brandon W. Phelps

  28. Added Alternate Co-Sponsor Rep. Kevin Joyce

  29. Added Alternate Co-Sponsor Rep. Naomi D. Jakobsson

  30. Added Alternate Chief Co-Sponsor Rep. Patrick Verschoore

  31. Added Alternate Chief Co-Sponsor Rep. William Delgado

  32. Added Alternate Chief Co-Sponsor Rep. Kevin A. McCarthy

  33. Added Alternate Chief Co-Sponsor Rep. Robert F. Flider

  34. Assigned to Revenue Committee

  35. Referred to Rules Committee

  36. First Reading

  37. Chief House Sponsor Rep. Jack D. Franks

  38. Placed on Calendar Order of First Reading

  39. Arrived in House

  40. Third Reading - Passed; 055-001-000

  41. Added as Chief Co-Sponsor Sen. Barack Obama

  42. Placed on Calendar Order of 3rd Reading March 24, 2003

  43. Senate Floor Amendment No. 1 Adopted; Clayborne

  44. Second Reading

  45. Senate Floor Amendment No. 1 Be Adopted Revenue; 008-000-000

  46. Senate Floor Amendment No. 1 Rules Refers to Revenue

  47. Fiscal Note Filed

  48. Senate Floor Amendment No. 1 Referred to Rules

  49. Senate Floor Amendment No. 1 Filed with Secretary by Sen. James F. Clayborne, Jr.

  50. Added as Co-Sponsor Sen. Iris Y. Martinez

  51. Added as Co-Sponsor Sen. Antonio Munoz

  52. Added as Co-Sponsor Sen. Mattie Hunter

  53. Placed on Calendar Order of 2nd Reading February 28, 2003

  54. Do Pass Revenue; 008-000-000

  55. Fiscal Note Requested by Sen. Chris Lauzen

  56. Added as Chief Co-Sponsor Sen. Jeffrey M. Schoenberg

  57. Assigned to Revenue

  58. Referred to Rules

  59. First Reading

  60. Filed with Secretary by Sen. James F. Clayborne, Jr.

Sponsors

  • Jr. James F. Clayborne · Cosponsor
  • Naomi D. Jakobsson · Cosponsor
  • Brandon W. Phelps · Cosponsor
  • Michael K. Smith · Cosponsor
  • Gary Forby · Cosponsor
  • Mary K. O'Brien · Cosponsor
  • Patrick J. Joyce · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

0 sponsors · 7 co-sponsors · 176 not signed on

Sponsors (0)

None.

Co-sponsors (7)

  • James F. Clayborne, Jr.
  • Naomi D. Jakobsson
  • Brandon W. Phelps
  • Michael K. Smith
  • Gary Forby
  • Mary K. O'Brien
  • Patrick J. Joyce Democrat

Not signed on (176)

176 members have not signed on to this bill.

Show all 176 →

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

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

Votes

Third Reading

Passed 115 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 103003
Democrat 9000
Republican 3000
Total 115003
% of votes cast 97%0%0%3%
How each member voted (118)
Member Party Vote
Saviano — Yea
Schmitz — Yea
Sommer — Yea
Soto — Yea
Winters — Yea
Younge — Yea
Leitch — Yea
Acevedo — Yea
Aguilar — Yea
Bassi — Yea
Beaubien — Yea
Bellock — Yea
Berrios — Yea
Mautino — Yea
Biggins — Yea
Black — Yea
Boland — Yea
May — Yea
Bost — Yea
Brauer — Yea
Brosnahan — Yea
Capparelli — Yea
McAuliffe — Yea
Millner — Yea
Morrow — Yea
Franks — Not Voting
Hamos — Yea
Myers — Yea
Jakobsson — Yea
Jefferson — Yea
Osmond — Yea
Lindner — Yea
Mathias — Yea
McCarthy — Yea
McKeon — Yea
Mendoza — Yea
Meyer — Yea
Lyons, Eileen — Yea
Bailey — Yea
Lyons, Joseph — Yea
Reitz — Yea
Parke — Yea
Phelps — Yea
Scully — Yea
Slone — Yea
McGuire — Yea
Bradley, Richard — Yea
Brady — Yea
Dunkin — Yea
Dunn — Yea
Flider — Yea
Flowers — Yea
Forby — Yea
Fritchey — Yea
Froehlich — Yea
Giles — Yea
Graham — Yea
Granberg — Yea
Krause — Yea
Kurtz — Yea
Lang — Yea
Madigan — Yea
Mitchell, Bill — Yea
Hannig — Yea
Burke — Yea
Mitchell, Jerry — Yea
Moffitt — Yea
Sullivan — Yea
Molaro — Yea
Mulligan — Yea
Munson — Yea
Nekritz — Yea
Howard — Yea
Novak — Yea
O'Brien — Yea
Osterman — Yea
Pankau — Yea
Watson — Yea
Jones — Yea
Tenhouse — Yea
Turner — Yea
Davis, Monique — Yea
Davis, Steve — Yea
Verschoore — Yea
Wait — Yea
Washington — Yea
Wirsing — Yea
Yarbrough — Yea
Churchill — Yea
Colvin — Yea
Coulson — Yea
Cross — Yea
Cultra — Yea
Currie — Yea
Daniels — Yea
Eddy — Not Voting
Grunloh — Yea
Hassert — Yea
Holbrook — Yea
Hultgren — Yea
Kosel — Yea
Pihos — Not Voting
Poe — Yea
Ryg — Yea
Sacia — Yea
Chapa LaVia — Yea
Eva-Dina Delgado Democrat Yea
Jay Hoffman Democrat Yea
Lakesia Collins Democrat Yea
Michael J. Kelly Democrat Yea
Nicholas K. Smith Democrat Yea
Patrick J. Joyce Democrat Yea
Robert "Bob" Rita Democrat Yea
Sara Feigenholtz Democrat Yea
William "Will" Davis Democrat Yea
Brad Stephens Republican Yea
Chapin Rose Republican Yea
Chris Miller Republican Yea

Official roll call →

Third Reading

Passed 55 Yea · 1 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 47103
Democrat 7000
Republican 1000
Total 55103
% of votes cast 93%2%0%5%
How each member voted (59)
Member Party Vote
Sandoval — Yea
Sieben — Yea
Silverstein — Yea
Maloney — Yea
Althoff — Yea
Martinez — Yea
Bomke — Yea
Burzynski — Yea
Halvorson — Yea
Obama — Yea
Munoz — Yea
Haine — Yea
Lauzen — Yea
Link — Yea
Sullivan, J. — Yea
Petka — Yea
Luechtefeld — Yea
Meeks — Yea
Jacobs — Yea
Jones, J. — Yea
Philip — Not Voting
Jones, W. — Yea
Schoenberg — Yea
Watson — Yea
Cullerton — Yea
Shadid — Yea
Demuzio — Yea
Sullivan, D. — Not Voting
Brady — Not Voting
Trotter — Yea
Viverito — Yea
Winkel — Yea
Wojcik — Yea
Woolard — Yea
Clayborne — Yea
Cronin — Yea
Crotty — Yea
DeLeo — Yea
Dillard — Yea
Garrett — Yea
Geo-Karis — Yea
Hendon — Yea
Peterson — Yea
Radogno — Yea
Rauschenberger — Nay
Righter — Yea
Risinger — Yea
Ronen — Yea
Roskam — Yea
Rutherford — Yea
del Valle — Yea
Don Harmon Democrat Yea
Emanuel "Chris" Welch Democrat Yea
Emil Jones, III Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Lawrence "Larry" Walsh, Jr. Democrat Yea
Mattie Hunter Democrat Yea
Dave Syverson Republican Yea

Official roll call →

Subjects

taxation education
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 362 do?
Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2003, moneys contributed during the taxable year by the taxpayer for the purchase of an Illinois prepaid tuition contract, excluding moneys rolled over from another qualified tuition program account, may be deducted from the taxpayer's federal adjusted gross income in arriving at base income for Illinois income tax purposes. Exempts the deduction from the sunset provisions of the Act. Amends the Illinois Prepaid Tuition Act to include a reference to the deduction. Effective immediately.
Who sponsors SB 362?
SB 362 is sponsored by James F. Clayborne, Jr., Naomi D. Jakobsson, Brandon W. Phelps, Michael K. Smith, Gary Forby, Mary K. O'Brien, and Patrick J. Joyce (Democrat).
What is the current status of SB 362?
This bill died with 93rd Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 362?
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