HB 6806 — INC TX-DEDUCT-LIVE ORGAN DONOR

HB6806 *LRB09320530SJM46335b*Engrossed 93RDLRB093 GENERAL20530 ASSEMBLYSJM State46335 ofb IllinoisAN andACT 2004concerning Introducedtaxes. 02/09/04, by Bill Mitchell - Shane Cultra SYNOPSIS AS INTRODUCED:

ILCS 5/203 from Ch.

120, par.

2-203 Amends the Illinois Income Tax Act.

For taxable years ending on or taxpayer, while living, donates one or more of his or her human organs to another human being for human organ transplantation.

Provides that the deduction may be claimed only once and for only unreimbursed travel and lodging expenses and lost wages incurred by the claimant and related to the claimant’s organ donation.

Effective immediately.

LRB093 20530 SJM 46335 b FISCAL NOTE ACT MAY APPLY A BILL FOR HB6806 LRB093 20530 SJM 46335 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 taken under subparagraph (L) of this paragraph (2) prior to July 1, HB6806 Engrossed - 2 - LRB093 20530 SJM 46335 b 1991, the retrospective application date of Article 4 of Public Act 87-17.

and (D-16) 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 the aggregate amount of the deductions taken in all taxable HB6806 Engrossed - 3 - LRB093 20530 SJM 46335 b years under subparagraph (Z) with respect to that property.;

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 of any component of the Armed Forces of the United States and in respect HB6806 Engrossed - 4 - LRB093 20530 SJM 46335 b 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.

(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 HB6806 Engrossed - 5 - LRB093 20530 SJM 46335 b Foreign Trade Zone or Sub-Zone and that is designated a High Impact Business located in Illinois;

HB6806 Engrossed - 6 - LRB093 20530 SJM 46335 b (P) An amount equal to the amount of the deduction used to compute the federal income tax credit for restoration of substantial amounts held under claim of right for the taxable year pursuant to Section 1341 of the Internal Revenue Code of 1986;

(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 HB6806 Engrossed - 7 - LRB093 20530 SJM 46335 b 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 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 HB6806 Engrossed - 8 - LRB093 20530 SJM 46335 b 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;

(Z) For taxable years 2001 and thereafter, for the HB6806 Engrossed - 9 - LRB093 20530 SJM 46335 b 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:

HB6806 Engrossed - 10 - LRB093 20530 SJM 46335 b (CC) For taxable years ending on or after December 31, 2004, subject to the conditions in this subparagraph, up to $10,000, if the taxpayer, while living, donates one or more of his or her human organs to another human being for human organ transplantation.

(A) An amount equal to all amounts paid or accrued to the taxpayer as interest and all distributions HB6806 Engrossed - 11 - LRB093 20530 SJM 46335 b received from regulated investment companies 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 reduced by the amount of addition modification under this subparagraph (E) which related to that net operating loss and which HB6806 Engrossed - 12 - LRB093 20530 SJM 46335 b 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;

The taxpayer is required to make the addition modification under this subparagraph only once with HB6806 Engrossed - 13 - LRB093 20530 SJM 46335 b respect to any one piece of property;

HB6806 Engrossed - 14 - LRB093 20530 SJM 46335 b (K) An amount equal to those dividends included in such total which were paid by a corporation which conducts business operations in an Enterprise Zone or zones created under the Illinois Enterprise Zone Act and conducts substantially all of its operations in an Enterprise Zone or zones;

(M-1) For any taxpayer that is a financial HB6806 Engrossed - 15 - LRB093 20530 SJM 46335 b organization within the meaning of Section 304(c) of this Act, an amount included in such total as interest income from a loan or loans made by such taxpayer to a borrower, to the extent that such a loan is secured by property which is eligible for the High Impact Business Investment Credit.

(i) 85% for taxable years ending on or before December 31, 1992, or, a percentage equal to the percentage allowable under Section HB6806 Engrossed - 16 - LRB093 20530 SJM 46335 b 243(a)(1) of the Internal Revenue Code of 1986 for taxable years ending after December 31, 1992, of the amount by which dividends included in taxable income and received from a corporation that is not created or organized under the laws of the United States or any state or political subdivision thereof, including, for taxable years ending on or after December 31, 1988, dividends received or deemed received or paid or deemed paid under Sections 951 through 964 of the Internal Revenue Code, exceed the amount of the modification provided under subparagraph (G) of paragraph (2) of this subsection (b) which is related to such dividends;

(R) In the case of an attorney-in-fact with respect to whom an interinsurer or a reciprocal insurer has made the election under Section 835 of the Internal HB6806 Engrossed - 17 - LRB093 20530 SJM 46335 b Revenue Code, 26 U.S.C.

The aggregate amount deducted under this subparagraph in all taxable years for any one piece of HB6806 Engrossed - 18 - LRB093 20530 SJM 46335 b 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;

and (iii) any other trust, $100, but in each such HB6806 Engrossed - 19 - LRB093 20530 SJM 46335 b case, only to the extent such amount was deducted in the computation of taxable income;

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 HB6806 Engrossed - 20 - LRB093 20530 SJM 46335 b (E) shall be the sum of the amounts computed independently under the preceding provisions of this subparagraph (E) for each such taxable year;

HB6806 Engrossed - 21 - LRB093 20530 SJM 46335 b and by deducting from the total so obtained the sum of the following amounts:

and (ii) for HB6806 Engrossed - 22 - LRB093 20530 SJM 46335 b 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;

(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 HB6806 Engrossed - 23 - LRB093 20530 SJM 46335 b 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;

(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 HB6806 Engrossed - 24 - LRB093 20530 SJM 46335 b 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;

The taxable income referred to in HB6806 Engrossed - 25 - LRB093 20530 SJM 46335 b paragraph (1) shall be modified by adding thereto the sum of the following amounts:

HB6806 Engrossed - 26 - LRB093 20530 SJM 46335 b (E) The valuation limitation amount;

and (ii) for taxable years ending on or after August 13, 1999, Sections HB6806 Engrossed - 27 - LRB093 20530 SJM 46335 b 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the Internal Revenue Code;

(1) "y" equals the amount of the depreciation HB6806 Engrossed - 28 - LRB093 20530 SJM 46335 b 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;

Taxable income may be less than HB6806 Engrossed - 29 - LRB093 20530 SJM 46335 b zero.

In the case of mutual insurance companies subject to the tax HB6806 Engrossed - 30 - LRB093 20530 SJM 46335 b imposed by Section 831 of the Internal Revenue Code, insurance company taxable income;

and (ii) HB6806 Engrossed - 31 - LRB093 20530 SJM 46335 b a Subchapter S corporation for which there is in effect a federal election to opt out of the provisions of the Subchapter S Revision Act of 1982 and have applied instead the prior federal Subchapter S rules as in effect on July 1, 1982, the taxable income of such corporation determined in accordance with the federal Subchapter S rules as in effect on July 1, 1982;

(A) If the fair market value of property referred to in paragraph (1) was readily ascertainable on August 1, 1969, the pre-August 1, 1969 appreciation amount for HB6806 Engrossed - 32 - LRB093 20530 SJM 46335 b such property is the lesser of (i) the excess of such fair market value over the taxpayer’s basis (for determining gain) for such property on that date (determined under the Internal Revenue Code as in effect on that date), or (ii) the total gain realized and reportable for federal income tax purposes in respect of the sale, exchange or other disposition of such property.

HB6806 Engrossed - 33 - LRB093 20530 SJM 46335 b (Source: