Illinois 2023-2024 Regular Session

Illinois House Bill HB0998 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0998 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 from Ch. 120, par. 2-203 Amends the Illinois Income Tax Act. Creates an income tax deduction in an amount equal to any federal deduction disallowed pursuant to Section 280E of the Internal Revenue Code related to the production and distribution of adult-use cannabis products by an entity licensed under the Cannabis Regulation and Tax Act, if those amounts are not used as the basis for any other tax deduction, exemption, or credit and not otherwise required to be added back when computing the taxpayer's base income. Effective immediately. LRB103 03557 HLH 48563 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0998 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/203 from Ch. 120, par. 2-203 Amends the Illinois Income Tax Act. Creates an income tax deduction in an amount equal to any federal deduction disallowed pursuant to Section 280E of the Internal Revenue Code related to the production and distribution of adult-use cannabis products by an entity licensed under the Cannabis Regulation and Tax Act, if those amounts are not used as the basis for any other tax deduction, exemption, or credit and not otherwise required to be added back when computing the taxpayer's base income. Effective immediately. LRB103 03557 HLH 48563 b LRB103 03557 HLH 48563 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0998 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/203 from Ch. 120, par. 2-203
4	4	35 ILCS 5/203 from Ch. 120, par. 2-203
5	5	Amends the Illinois Income Tax Act. Creates an income tax deduction in an amount equal to any federal deduction disallowed pursuant to Section 280E of the Internal Revenue Code related to the production and distribution of adult-use cannabis products by an entity licensed under the Cannabis Regulation and Tax Act, if those amounts are not used as the basis for any other tax deduction, exemption, or credit and not otherwise required to be added back when computing the taxpayer's base income. Effective immediately.
6	6	LRB103 03557 HLH 48563 b LRB103 03557 HLH 48563 b
7	7	LRB103 03557 HLH 48563 b
8	8	A BILL FOR
9	9	HB0998LRB103 03557 HLH 48563 b HB0998 LRB103 03557 HLH 48563 b
10	10	HB0998 LRB103 03557 HLH 48563 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Income Tax Act is amended by
15	15	5 changing Section 203 as follows:
16	16	6 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
17	17	7 Sec. 203. Base income defined.
18	18	8 (a) Individuals.
19	19	9 (1) In general. In the case of an individual, base
20	20	10 income means an amount equal to the taxpayer's adjusted
21	21	11 gross income for the taxable year as modified by paragraph
22	22	12 (2).
23	23	13 (2) Modifications. The adjusted gross income referred
24	24	14 to in paragraph (1) shall be modified by adding thereto
25	25	15 the sum of the following amounts:
26	26	16 (A) An amount equal to all amounts paid or accrued
27	27	17 to the taxpayer as interest or dividends during the
28	28	18 taxable year to the extent excluded from gross income
29	29	19 in the computation of adjusted gross income, except
30	30	20 stock dividends of qualified public utilities
31	31	21 described in Section 305(e) of the Internal Revenue
32	32	22 Code;
33	33	23 (B) An amount equal to the amount of tax imposed by
34	34
35	35
36	36
37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0998 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/203 from Ch. 120, par. 2-203
39	39	35 ILCS 5/203 from Ch. 120, par. 2-203
40	40	Amends the Illinois Income Tax Act. Creates an income tax deduction in an amount equal to any federal deduction disallowed pursuant to Section 280E of the Internal Revenue Code related to the production and distribution of adult-use cannabis products by an entity licensed under the Cannabis Regulation and Tax Act, if those amounts are not used as the basis for any other tax deduction, exemption, or credit and not otherwise required to be added back when computing the taxpayer's base income. Effective immediately.
41	41	LRB103 03557 HLH 48563 b LRB103 03557 HLH 48563 b
42	42	LRB103 03557 HLH 48563 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	35 ILCS 5/203 from Ch. 120, par. 2-203
50	50
51	51
52	52
53	53	LRB103 03557 HLH 48563 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	HB0998 LRB103 03557 HLH 48563 b
64	64
65	65
66	66	HB0998- 2 -LRB103 03557 HLH 48563 b HB0998 - 2 - LRB103 03557 HLH 48563 b
67	67	HB0998 - 2 - LRB103 03557 HLH 48563 b
68	68	1 this Act to the extent deducted from gross income in
69	69	2 the computation of adjusted gross income for the
70	70	3 taxable year;
71	71	4 (C) An amount equal to the amount received during
72	72	5 the taxable year as a recovery or refund of real
73	73	6 property taxes paid with respect to the taxpayer's
74	74	7 principal residence under the Revenue Act of 1939 and
75	75	8 for which a deduction was previously taken under
76	76	9 subparagraph (L) of this paragraph (2) prior to July
77	77	10 1, 1991, the retrospective application date of Article
78	78	11 4 of Public Act 87-17. In the case of multi-unit or
79	79	12 multi-use structures and farm dwellings, the taxes on
80	80	13 the taxpayer's principal residence shall be that
81	81	14 portion of the total taxes for the entire property
82	82	15 which is attributable to such principal residence;
83	83	16 (D) An amount equal to the amount of the capital
84	84	17 gain deduction allowable under the Internal Revenue
85	85	18 Code, to the extent deducted from gross income in the
86	86	19 computation of adjusted gross income;
87	87	20 (D-5) An amount, to the extent not included in
88	88	21 adjusted gross income, equal to the amount of money
89	89	22 withdrawn by the taxpayer in the taxable year from a
90	90	23 medical care savings account and the interest earned
91	91	24 on the account in the taxable year of a withdrawal
92	92	25 pursuant to subsection (b) of Section 20 of the
93	93	26 Medical Care Savings Account Act or subsection (b) of
94	94
95	95
96	96
97	97
98	98
99	99	HB0998 - 2 - LRB103 03557 HLH 48563 b
100	100
101	101
102	102	HB0998- 3 -LRB103 03557 HLH 48563 b HB0998 - 3 - LRB103 03557 HLH 48563 b
103	103	HB0998 - 3 - LRB103 03557 HLH 48563 b
104	104	1 Section 20 of the Medical Care Savings Account Act of
105	105	2 2000;
106	106	3 (D-10) For taxable years ending after December 31,
107	107	4 1997, an amount equal to any eligible remediation
108	108	5 costs that the individual deducted in computing
109	109	6 adjusted gross income and for which the individual
110	110	7 claims a credit under subsection (l) of Section 201;
111	111	8 (D-15) For taxable years 2001 and thereafter, an
112	112	9 amount equal to the bonus depreciation deduction taken
113	113	10 on the taxpayer's federal income tax return for the
114	114	11 taxable year under subsection (k) of Section 168 of
115	115	12 the Internal Revenue Code;
116	116	13 (D-16) If the taxpayer sells, transfers, abandons,
117	117	14 or otherwise disposes of property for which the
118	118	15 taxpayer was required in any taxable year to make an
119	119	16 addition modification under subparagraph (D-15), then
120	120	17 an amount equal to the aggregate amount of the
121	121	18 deductions taken in all taxable years under
122	122	19 subparagraph (Z) with respect to that property.
123	123	20 If the taxpayer continues to own property through
124	124	21 the last day of the last tax year for which a
125	125	22 subtraction is allowed with respect to that property
126	126	23 under subparagraph (Z) and for which the taxpayer was
127	127	24 allowed in any taxable year to make a subtraction
128	128	25 modification under subparagraph (Z), then an amount
129	129	26 equal to that subtraction modification.
130	130
131	131
132	132
133	133
134	134
135	135	HB0998 - 3 - LRB103 03557 HLH 48563 b
136	136
137	137
138	138	HB0998- 4 -LRB103 03557 HLH 48563 b HB0998 - 4 - LRB103 03557 HLH 48563 b
139	139	HB0998 - 4 - LRB103 03557 HLH 48563 b
140	140	1 The taxpayer is required to make the addition
141	141	2 modification under this subparagraph only once with
142	142	3 respect to any one piece of property;
143	143	4 (D-17) An amount equal to the amount otherwise
144	144	5 allowed as a deduction in computing base income for
145	145	6 interest paid, accrued, or incurred, directly or
146	146	7 indirectly, (i) for taxable years ending on or after
147	147	8 December 31, 2004, to a foreign person who would be a
148	148	9 member of the same unitary business group but for the
149	149	10 fact that foreign person's business activity outside
150	150	11 the United States is 80% or more of the foreign
151	151	12 person's total business activity and (ii) for taxable
152	152	13 years ending on or after December 31, 2008, to a person
153	153	14 who would be a member of the same unitary business
154	154	15 group but for the fact that the person is prohibited
155	155	16 under Section 1501(a)(27) from being included in the
156	156	17 unitary business group because he or she is ordinarily
157	157	18 required to apportion business income under different
158	158	19 subsections of Section 304. The addition modification
159	159	20 required by this subparagraph shall be reduced to the
160	160	21 extent that dividends were included in base income of
161	161	22 the unitary group for the same taxable year and
162	162	23 received by the taxpayer or by a member of the
163	163	24 taxpayer's unitary business group (including amounts
164	164	25 included in gross income under Sections 951 through
165	165	26 964 of the Internal Revenue Code and amounts included
166	166
167	167
168	168
169	169
170	170
171	171	HB0998 - 4 - LRB103 03557 HLH 48563 b
172	172
173	173
174	174	HB0998- 5 -LRB103 03557 HLH 48563 b HB0998 - 5 - LRB103 03557 HLH 48563 b
175	175	HB0998 - 5 - LRB103 03557 HLH 48563 b
176	176	1 in gross income under Section 78 of the Internal
177	177	2 Revenue Code) with respect to the stock of the same
178	178	3 person to whom the interest was paid, accrued, or
179	179	4 incurred.
180	180	5 This paragraph shall not apply to the following:
181	181	6 (i) an item of interest paid, accrued, or
182	182	7 incurred, directly or indirectly, to a person who
183	183	8 is subject in a foreign country or state, other
184	184	9 than a state which requires mandatory unitary
185	185	10 reporting, to a tax on or measured by net income
186	186	11 with respect to such interest; or
187	187	12 (ii) an item of interest paid, accrued, or
188	188	13 incurred, directly or indirectly, to a person if
189	189	14 the taxpayer can establish, based on a
190	190	15 preponderance of the evidence, both of the
191	191	16 following:
192	192	17 (a) the person, during the same taxable
193	193	18 year, paid, accrued, or incurred, the interest
194	194	19 to a person that is not a related member, and
195	195	20 (b) the transaction giving rise to the
196	196	21 interest expense between the taxpayer and the
197	197	22 person did not have as a principal purpose the
198	198	23 avoidance of Illinois income tax, and is paid
199	199	24 pursuant to a contract or agreement that
200	200	25 reflects an arm's-length interest rate and
201	201	26 terms; or
202	202
203	203
204	204
205	205
206	206
207	207	HB0998 - 5 - LRB103 03557 HLH 48563 b
208	208
209	209
210	210	HB0998- 6 -LRB103 03557 HLH 48563 b HB0998 - 6 - LRB103 03557 HLH 48563 b
211	211	HB0998 - 6 - LRB103 03557 HLH 48563 b
212	212	1 (iii) the taxpayer can establish, based on
213	213	2 clear and convincing evidence, that the interest
214	214	3 paid, accrued, or incurred relates to a contract
215	215	4 or agreement entered into at arm's-length rates
216	216	5 and terms and the principal purpose for the
217	217	6 payment is not federal or Illinois tax avoidance;
218	218	7 or
219	219	8 (iv) an item of interest paid, accrued, or
220	220	9 incurred, directly or indirectly, to a person if
221	221	10 the taxpayer establishes by clear and convincing
222	222	11 evidence that the adjustments are unreasonable; or
223	223	12 if the taxpayer and the Director agree in writing
224	224	13 to the application or use of an alternative method
225	225	14 of apportionment under Section 304(f).
226	226	15 Nothing in this subsection shall preclude the
227	227	16 Director from making any other adjustment
228	228	17 otherwise allowed under Section 404 of this Act
229	229	18 for any tax year beginning after the effective
230	230	19 date of this amendment provided such adjustment is
231	231	20 made pursuant to regulation adopted by the
232	232	21 Department and such regulations provide methods
233	233	22 and standards by which the Department will utilize
234	234	23 its authority under Section 404 of this Act;
235	235	24 (D-18) An amount equal to the amount of intangible
236	236	25 expenses and costs otherwise allowed as a deduction in
237	237	26 computing base income, and that were paid, accrued, or
238	238
239	239
240	240
241	241
242	242
243	243	HB0998 - 6 - LRB103 03557 HLH 48563 b
244	244
245	245
246	246	HB0998- 7 -LRB103 03557 HLH 48563 b HB0998 - 7 - LRB103 03557 HLH 48563 b
247	247	HB0998 - 7 - LRB103 03557 HLH 48563 b
248	248	1 incurred, directly or indirectly, (i) for taxable
249	249	2 years ending on or after December 31, 2004, to a
250	250	3 foreign person who would be a member of the same
251	251	4 unitary business group but for the fact that the
252	252	5 foreign person's business activity outside the United
253	253	6 States is 80% or more of that person's total business
254	254	7 activity and (ii) for taxable years ending on or after
255	255	8 December 31, 2008, to a person who would be a member of
256	256	9 the same unitary business group but for the fact that
257	257	10 the person is prohibited under Section 1501(a)(27)
258	258	11 from being included in the unitary business group
259	259	12 because he or she is ordinarily required to apportion
260	260	13 business income under different subsections of Section
261	261	14 304. The addition modification required by this
262	262	15 subparagraph shall be reduced to the extent that
263	263	16 dividends were included in base income of the unitary
264	264	17 group for the same taxable year and received by the
265	265	18 taxpayer or by a member of the taxpayer's unitary
266	266	19 business group (including amounts included in gross
267	267	20 income under Sections 951 through 964 of the Internal
268	268	21 Revenue Code and amounts included in gross income
269	269	22 under Section 78 of the Internal Revenue Code) with
270	270	23 respect to the stock of the same person to whom the
271	271	24 intangible expenses and costs were directly or
272	272	25 indirectly paid, incurred, or accrued. The preceding
273	273	26 sentence does not apply to the extent that the same
274	274
275	275
276	276
277	277
278	278
279	279	HB0998 - 7 - LRB103 03557 HLH 48563 b
280	280
281	281
282	282	HB0998- 8 -LRB103 03557 HLH 48563 b HB0998 - 8 - LRB103 03557 HLH 48563 b
283	283	HB0998 - 8 - LRB103 03557 HLH 48563 b
284	284	1 dividends caused a reduction to the addition
285	285	2 modification required under Section 203(a)(2)(D-17) of
286	286	3 this Act. As used in this subparagraph, the term
287	287	4 "intangible expenses and costs" includes (1) expenses,
288	288	5 losses, and costs for, or related to, the direct or
289	289	6 indirect acquisition, use, maintenance or management,
290	290	7 ownership, sale, exchange, or any other disposition of
291	291	8 intangible property; (2) losses incurred, directly or
292	292	9 indirectly, from factoring transactions or discounting
293	293	10 transactions; (3) royalty, patent, technical, and
294	294	11 copyright fees; (4) licensing fees; and (5) other
295	295	12 similar expenses and costs. For purposes of this
296	296	13 subparagraph, "intangible property" includes patents,
297	297	14 patent applications, trade names, trademarks, service
298	298	15 marks, copyrights, mask works, trade secrets, and
299	299	16 similar types of intangible assets.
300	300	17 This paragraph shall not apply to the following:
301	301	18 (i) any item of intangible expenses or costs
302	302	19 paid, accrued, or incurred, directly or
303	303	20 indirectly, from a transaction with a person who
304	304	21 is subject in a foreign country or state, other
305	305	22 than a state which requires mandatory unitary
306	306	23 reporting, to a tax on or measured by net income
307	307	24 with respect to such item; or
308	308	25 (ii) any item of intangible expense or cost
309	309	26 paid, accrued, or incurred, directly or
310	310
311	311
312	312
313	313
314	314
315	315	HB0998 - 8 - LRB103 03557 HLH 48563 b
316	316
317	317
318	318	HB0998- 9 -LRB103 03557 HLH 48563 b HB0998 - 9 - LRB103 03557 HLH 48563 b
319	319	HB0998 - 9 - LRB103 03557 HLH 48563 b
320	320	1 indirectly, if the taxpayer can establish, based
321	321	2 on a preponderance of the evidence, both of the
322	322	3 following:
323	323	4 (a) the person during the same taxable
324	324	5 year paid, accrued, or incurred, the
325	325	6 intangible expense or cost to a person that is
326	326	7 not a related member, and
327	327	8 (b) the transaction giving rise to the
328	328	9 intangible expense or cost between the
329	329	10 taxpayer and the person did not have as a
330	330	11 principal purpose the avoidance of Illinois
331	331	12 income tax, and is paid pursuant to a contract
332	332	13 or agreement that reflects arm's-length terms;
333	333	14 or
334	334	15 (iii) any item of intangible expense or cost
335	335	16 paid, accrued, or incurred, directly or
336	336	17 indirectly, from a transaction with a person if
337	337	18 the taxpayer establishes by clear and convincing
338	338	19 evidence, that the adjustments are unreasonable;
339	339	20 or if the taxpayer and the Director agree in
340	340	21 writing to the application or use of an
341	341	22 alternative method of apportionment under Section
342	342	23 304(f);
343	343	24 Nothing in this subsection shall preclude the
344	344	25 Director from making any other adjustment
345	345	26 otherwise allowed under Section 404 of this Act
346	346
347	347
348	348
349	349
350	350
351	351	HB0998 - 9 - LRB103 03557 HLH 48563 b
352	352
353	353
354	354	HB0998- 10 -LRB103 03557 HLH 48563 b HB0998 - 10 - LRB103 03557 HLH 48563 b
355	355	HB0998 - 10 - LRB103 03557 HLH 48563 b
356	356	1 for any tax year beginning after the effective
357	357	2 date of this amendment provided such adjustment is
358	358	3 made pursuant to regulation adopted by the
359	359	4 Department and such regulations provide methods
360	360	5 and standards by which the Department will utilize
361	361	6 its authority under Section 404 of this Act;
362	362	7 (D-19) For taxable years ending on or after
363	363	8 December 31, 2008, an amount equal to the amount of
364	364	9 insurance premium expenses and costs otherwise allowed
365	365	10 as a deduction in computing base income, and that were
366	366	11 paid, accrued, or incurred, directly or indirectly, to
367	367	12 a person who would be a member of the same unitary
368	368	13 business group but for the fact that the person is
369	369	14 prohibited under Section 1501(a)(27) from being
370	370	15 included in the unitary business group because he or
371	371	16 she is ordinarily required to apportion business
372	372	17 income under different subsections of Section 304. The
373	373	18 addition modification required by this subparagraph
374	374	19 shall be reduced to the extent that dividends were
375	375	20 included in base income of the unitary group for the
376	376	21 same taxable year and received by the taxpayer or by a
377	377	22 member of the taxpayer's unitary business group
378	378	23 (including amounts included in gross income under
379	379	24 Sections 951 through 964 of the Internal Revenue Code
380	380	25 and amounts included in gross income under Section 78
381	381	26 of the Internal Revenue Code) with respect to the
382	382
383	383
384	384
385	385
386	386
387	387	HB0998 - 10 - LRB103 03557 HLH 48563 b
388	388
389	389
390	390	HB0998- 11 -LRB103 03557 HLH 48563 b HB0998 - 11 - LRB103 03557 HLH 48563 b
391	391	HB0998 - 11 - LRB103 03557 HLH 48563 b
392	392	1 stock of the same person to whom the premiums and costs
393	393	2 were directly or indirectly paid, incurred, or
394	394	3 accrued. The preceding sentence does not apply to the
395	395	4 extent that the same dividends caused a reduction to
396	396	5 the addition modification required under Section
397	397	6 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
398	398	7 Act;
399	399	8 (D-20) For taxable years beginning on or after
400	400	9 January 1, 2002 and ending on or before December 31,
401	401	10 2006, in the case of a distribution from a qualified
402	402	11 tuition program under Section 529 of the Internal
403	403	12 Revenue Code, other than (i) a distribution from a
404	404	13 College Savings Pool created under Section 16.5 of the
405	405	14 State Treasurer Act or (ii) a distribution from the
406	406	15 Illinois Prepaid Tuition Trust Fund, an amount equal
407	407	16 to the amount excluded from gross income under Section
408	408	17 529(c)(3)(B). For taxable years beginning on or after
409	409	18 January 1, 2007, in the case of a distribution from a
410	410	19 qualified tuition program under Section 529 of the
411	411	20 Internal Revenue Code, other than (i) a distribution
412	412	21 from a College Savings Pool created under Section 16.5
413	413	22 of the State Treasurer Act, (ii) a distribution from
414	414	23 the Illinois Prepaid Tuition Trust Fund, or (iii) a
415	415	24 distribution from a qualified tuition program under
416	416	25 Section 529 of the Internal Revenue Code that (I)
417	417	26 adopts and determines that its offering materials
418	418
419	419
420	420
421	421
422	422
423	423	HB0998 - 11 - LRB103 03557 HLH 48563 b
424	424
425	425
426	426	HB0998- 12 -LRB103 03557 HLH 48563 b HB0998 - 12 - LRB103 03557 HLH 48563 b
427	427	HB0998 - 12 - LRB103 03557 HLH 48563 b
428	428	1 comply with the College Savings Plans Network's
429	429	2 disclosure principles and (II) has made reasonable
430	430	3 efforts to inform in-state residents of the existence
431	431	4 of in-state qualified tuition programs by informing
432	432	5 Illinois residents directly and, where applicable, to
433	433	6 inform financial intermediaries distributing the
434	434	7 program to inform in-state residents of the existence
435	435	8 of in-state qualified tuition programs at least
436	436	9 annually, an amount equal to the amount excluded from
437	437	10 gross income under Section 529(c)(3)(B).
438	438	11 For the purposes of this subparagraph (D-20), a
439	439	12 qualified tuition program has made reasonable efforts
440	440	13 if it makes disclosures (which may use the term
441	441	14 "in-state program" or "in-state plan" and need not
442	442	15 specifically refer to Illinois or its qualified
443	443	16 programs by name) (i) directly to prospective
444	444	17 participants in its offering materials or makes a
445	445	18 public disclosure, such as a website posting; and (ii)
446	446	19 where applicable, to intermediaries selling the
447	447	20 out-of-state program in the same manner that the
448	448	21 out-of-state program distributes its offering
449	449	22 materials;
450	450	23 (D-20.5) For taxable years beginning on or after
451	451	24 January 1, 2018, in the case of a distribution from a
452	452	25 qualified ABLE program under Section 529A of the
453	453	26 Internal Revenue Code, other than a distribution from
454	454
455	455
456	456
457	457
458	458
459	459	HB0998 - 12 - LRB103 03557 HLH 48563 b
460	460
461	461
462	462	HB0998- 13 -LRB103 03557 HLH 48563 b HB0998 - 13 - LRB103 03557 HLH 48563 b
463	463	HB0998 - 13 - LRB103 03557 HLH 48563 b
464	464	1 a qualified ABLE program created under Section 16.6 of
465	465	2 the State Treasurer Act, an amount equal to the amount
466	466	3 excluded from gross income under Section 529A(c)(1)(B)
467	467	4 of the Internal Revenue Code;
468	468	5 (D-21) For taxable years beginning on or after
469	469	6 January 1, 2007, in the case of transfer of moneys from
470	470	7 a qualified tuition program under Section 529 of the
471	471	8 Internal Revenue Code that is administered by the
472	472	9 State to an out-of-state program, an amount equal to
473	473	10 the amount of moneys previously deducted from base
474	474	11 income under subsection (a)(2)(Y) of this Section;
475	475	12 (D-21.5) For taxable years beginning on or after
476	476	13 January 1, 2018, in the case of the transfer of moneys
477	477	14 from a qualified tuition program under Section 529 or
478	478	15 a qualified ABLE program under Section 529A of the
479	479	16 Internal Revenue Code that is administered by this
480	480	17 State to an ABLE account established under an
481	481	18 out-of-state ABLE account program, an amount equal to
482	482	19 the contribution component of the transferred amount
483	483	20 that was previously deducted from base income under
484	484	21 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
485	485	22 Section;
486	486	23 (D-22) For taxable years beginning on or after
487	487	24 January 1, 2009, and prior to January 1, 2018, in the
488	488	25 case of a nonqualified withdrawal or refund of moneys
489	489	26 from a qualified tuition program under Section 529 of
490	490
491	491
492	492
493	493
494	494
495	495	HB0998 - 13 - LRB103 03557 HLH 48563 b
496	496
497	497
498	498	HB0998- 14 -LRB103 03557 HLH 48563 b HB0998 - 14 - LRB103 03557 HLH 48563 b
499	499	HB0998 - 14 - LRB103 03557 HLH 48563 b
500	500	1 the Internal Revenue Code administered by the State
501	501	2 that is not used for qualified expenses at an eligible
502	502	3 education institution, an amount equal to the
503	503	4 contribution component of the nonqualified withdrawal
504	504	5 or refund that was previously deducted from base
505	505	6 income under subsection (a)(2)(y) of this Section,
506	506	7 provided that the withdrawal or refund did not result
507	507	8 from the beneficiary's death or disability. For
508	508	9 taxable years beginning on or after January 1, 2018:
509	509	10 (1) in the case of a nonqualified withdrawal or
510	510	11 refund, as defined under Section 16.5 of the State
511	511	12 Treasurer Act, of moneys from a qualified tuition
512	512	13 program under Section 529 of the Internal Revenue Code
513	513	14 administered by the State, an amount equal to the
514	514	15 contribution component of the nonqualified withdrawal
515	515	16 or refund that was previously deducted from base
516	516	17 income under subsection (a)(2)(Y) of this Section, and
517	517	18 (2) in the case of a nonqualified withdrawal or refund
518	518	19 from a qualified ABLE program under Section 529A of
519	519	20 the Internal Revenue Code administered by the State
520	520	21 that is not used for qualified disability expenses, an
521	521	22 amount equal to the contribution component of the
522	522	23 nonqualified withdrawal or refund that was previously
523	523	24 deducted from base income under subsection (a)(2)(HH)
524	524	25 of this Section;
525	525	26 (D-23) An amount equal to the credit allowable to
526	526
527	527
528	528
529	529
530	530
531	531	HB0998 - 14 - LRB103 03557 HLH 48563 b
532	532
533	533
534	534	HB0998- 15 -LRB103 03557 HLH 48563 b HB0998 - 15 - LRB103 03557 HLH 48563 b
535	535	HB0998 - 15 - LRB103 03557 HLH 48563 b
536	536	1 the taxpayer under Section 218(a) of this Act,
537	537	2 determined without regard to Section 218(c) of this
538	538	3 Act;
539	539	4 (D-24) For taxable years ending on or after
540	540	5 December 31, 2017, an amount equal to the deduction
541	541	6 allowed under Section 199 of the Internal Revenue Code
542	542	7 for the taxable year;
543	543	8 (D-25) In the case of a resident, an amount equal
544	544	9 to the amount of tax for which a credit is allowed
545	545	10 pursuant to Section 201(p)(7) of this Act;
546	546	11 and by deducting from the total so obtained the sum of the
547	547	12 following amounts:
548	548	13 (E) For taxable years ending before December 31,
549	549	14 2001, any amount included in such total in respect of
550	550	15 any compensation (including but not limited to any
551	551	16 compensation paid or accrued to a serviceman while a
552	552	17 prisoner of war or missing in action) paid to a
553	553	18 resident by reason of being on active duty in the Armed
554	554	19 Forces of the United States and in respect of any
555	555	20 compensation paid or accrued to a resident who as a
556	556	21 governmental employee was a prisoner of war or missing
557	557	22 in action, and in respect of any compensation paid to a
558	558	23 resident in 1971 or thereafter for annual training
559	559	24 performed pursuant to Sections 502 and 503, Title 32,
560	560	25 United States Code as a member of the Illinois
561	561	26 National Guard or, beginning with taxable years ending
562	562
563	563
564	564
565	565
566	566
567	567	HB0998 - 15 - LRB103 03557 HLH 48563 b
568	568
569	569
570	570	HB0998- 16 -LRB103 03557 HLH 48563 b HB0998 - 16 - LRB103 03557 HLH 48563 b
571	571	HB0998 - 16 - LRB103 03557 HLH 48563 b
572	572	1 on or after December 31, 2007, the National Guard of
573	573	2 any other state. For taxable years ending on or after
574	574	3 December 31, 2001, any amount included in such total
575	575	4 in respect of any compensation (including but not
576	576	5 limited to any compensation paid or accrued to a
577	577	6 serviceman while a prisoner of war or missing in
578	578	7 action) paid to a resident by reason of being a member
579	579	8 of any component of the Armed Forces of the United
580	580	9 States and in respect of any compensation paid or
581	581	10 accrued to a resident who as a governmental employee
582	582	11 was a prisoner of war or missing in action, and in
583	583	12 respect of any compensation paid to a resident in 2001
584	584	13 or thereafter by reason of being a member of the
585	585	14 Illinois National Guard or, beginning with taxable
586	586	15 years ending on or after December 31, 2007, the
587	587	16 National Guard of any other state. The provisions of
588	588	17 this subparagraph (E) are exempt from the provisions
589	589	18 of Section 250;
590	590	19 (F) An amount equal to all amounts included in
591	591	20 such total pursuant to the provisions of Sections
592	592	21 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
593	593	22 408 of the Internal Revenue Code, or included in such
594	594	23 total as distributions under the provisions of any
595	595	24 retirement or disability plan for employees of any
596	596	25 governmental agency or unit, or retirement payments to
597	597	26 retired partners, which payments are excluded in
598	598
599	599
600	600
601	601
602	602
603	603	HB0998 - 16 - LRB103 03557 HLH 48563 b
604	604
605	605
606	606	HB0998- 17 -LRB103 03557 HLH 48563 b HB0998 - 17 - LRB103 03557 HLH 48563 b
607	607	HB0998 - 17 - LRB103 03557 HLH 48563 b
608	608	1 computing net earnings from self employment by Section
609	609	2 1402 of the Internal Revenue Code and regulations
610	610	3 adopted pursuant thereto;
611	611	4 (G) The valuation limitation amount;
612	612	5 (H) An amount equal to the amount of any tax
613	613	6 imposed by this Act which was refunded to the taxpayer
614	614	7 and included in such total for the taxable year;
615	615	8 (I) An amount equal to all amounts included in
616	616	9 such total pursuant to the provisions of Section 111
617	617	10 of the Internal Revenue Code as a recovery of items
618	618	11 previously deducted from adjusted gross income in the
619	619	12 computation of taxable income;
620	620	13 (J) An amount equal to those dividends included in
621	621	14 such total which were paid by a corporation which
622	622	15 conducts business operations in a River Edge
623	623	16 Redevelopment Zone or zones created under the River
624	624	17 Edge Redevelopment Zone Act, and conducts
625	625	18 substantially all of its operations in a River Edge
626	626	19 Redevelopment Zone or zones. This subparagraph (J) is
627	627	20 exempt from the provisions of Section 250;
628	628	21 (K) An amount equal to those dividends included in
629	629	22 such total that were paid by a corporation that
630	630	23 conducts business operations in a federally designated
631	631	24 Foreign Trade Zone or Sub-Zone and that is designated
632	632	25 a High Impact Business located in Illinois; provided
633	633	26 that dividends eligible for the deduction provided in
634	634
635	635
636	636
637	637
638	638
639	639	HB0998 - 17 - LRB103 03557 HLH 48563 b
640	640
641	641
642	642	HB0998- 18 -LRB103 03557 HLH 48563 b HB0998 - 18 - LRB103 03557 HLH 48563 b
643	643	HB0998 - 18 - LRB103 03557 HLH 48563 b
644	644	1 subparagraph (J) of paragraph (2) of this subsection
645	645	2 shall not be eligible for the deduction provided under
646	646	3 this subparagraph (K);
647	647	4 (L) For taxable years ending after December 31,
648	648	5 1983, an amount equal to all social security benefits
649	649	6 and railroad retirement benefits included in such
650	650	7 total pursuant to Sections 72(r) and 86 of the
651	651	8 Internal Revenue Code;
652	652	9 (M) With the exception of any amounts subtracted
653	653	10 under subparagraph (N), an amount equal to the sum of
654	654	11 all amounts disallowed as deductions by (i) Sections
655	655	12 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
656	656	13 and all amounts of expenses allocable to interest and
657	657	14 disallowed as deductions by Section 265(a)(1) of the
658	658	15 Internal Revenue Code; and (ii) for taxable years
659	659	16 ending on or after August 13, 1999, Sections
660	660	17 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
661	661	18 Internal Revenue Code, plus, for taxable years ending
662	662	19 on or after December 31, 2011, Section 45G(e)(3) of
663	663	20 the Internal Revenue Code and, for taxable years
664	664	21 ending on or after December 31, 2008, any amount
665	665	22 included in gross income under Section 87 of the
666	666	23 Internal Revenue Code; the provisions of this
667	667	24 subparagraph are exempt from the provisions of Section
668	668	25 250;
669	669	26 (N) An amount equal to all amounts included in
670	670
671	671
672	672
673	673
674	674
675	675	HB0998 - 18 - LRB103 03557 HLH 48563 b
676	676
677	677
678	678	HB0998- 19 -LRB103 03557 HLH 48563 b HB0998 - 19 - LRB103 03557 HLH 48563 b
679	679	HB0998 - 19 - LRB103 03557 HLH 48563 b
680	680	1 such total which are exempt from taxation by this
681	681	2 State either by reason of its statutes or Constitution
682	682	3 or by reason of the Constitution, treaties or statutes
683	683	4 of the United States; provided that, in the case of any
684	684	5 statute of this State that exempts income derived from
685	685	6 bonds or other obligations from the tax imposed under
686	686	7 this Act, the amount exempted shall be the interest
687	687	8 net of bond premium amortization;
688	688	9 (O) An amount equal to any contribution made to a
689	689	10 job training project established pursuant to the Tax
690	690	11 Increment Allocation Redevelopment Act;
691	691	12 (P) An amount equal to the amount of the deduction
692	692	13 used to compute the federal income tax credit for
693	693	14 restoration of substantial amounts held under claim of
694	694	15 right for the taxable year pursuant to Section 1341 of
695	695	16 the Internal Revenue Code or of any itemized deduction
696	696	17 taken from adjusted gross income in the computation of
697	697	18 taxable income for restoration of substantial amounts
698	698	19 held under claim of right for the taxable year;
699	699	20 (Q) An amount equal to any amounts included in
700	700	21 such total, received by the taxpayer as an
701	701	22 acceleration in the payment of life, endowment or
702	702	23 annuity benefits in advance of the time they would
703	703	24 otherwise be payable as an indemnity for a terminal
704	704	25 illness;
705	705	26 (R) An amount equal to the amount of any federal or
706	706
707	707
708	708
709	709
710	710
711	711	HB0998 - 19 - LRB103 03557 HLH 48563 b
712	712
713	713
714	714	HB0998- 20 -LRB103 03557 HLH 48563 b HB0998 - 20 - LRB103 03557 HLH 48563 b
715	715	HB0998 - 20 - LRB103 03557 HLH 48563 b
716	716	1 State bonus paid to veterans of the Persian Gulf War;
717	717	2 (S) An amount, to the extent included in adjusted
718	718	3 gross income, equal to the amount of a contribution
719	719	4 made in the taxable year on behalf of the taxpayer to a
720	720	5 medical care savings account established under the
721	721	6 Medical Care Savings Account Act or the Medical Care
722	722	7 Savings Account Act of 2000 to the extent the
723	723	8 contribution is accepted by the account administrator
724	724	9 as provided in that Act;
725	725	10 (T) An amount, to the extent included in adjusted
726	726	11 gross income, equal to the amount of interest earned
727	727	12 in the taxable year on a medical care savings account
728	728	13 established under the Medical Care Savings Account Act
729	729	14 or the Medical Care Savings Account Act of 2000 on
730	730	15 behalf of the taxpayer, other than interest added
731	731	16 pursuant to item (D-5) of this paragraph (2);
732	732	17 (U) For one taxable year beginning on or after
733	733	18 January 1, 1994, an amount equal to the total amount of
734	734	19 tax imposed and paid under subsections (a) and (b) of
735	735	20 Section 201 of this Act on grant amounts received by
736	736	21 the taxpayer under the Nursing Home Grant Assistance
737	737	22 Act during the taxpayer's taxable years 1992 and 1993;
738	738	23 (V) Beginning with tax years ending on or after
739	739	24 December 31, 1995 and ending with tax years ending on
740	740	25 or before December 31, 2004, an amount equal to the
741	741	26 amount paid by a taxpayer who is a self-employed
742	742
743	743
744	744
745	745
746	746
747	747	HB0998 - 20 - LRB103 03557 HLH 48563 b
748	748
749	749
750	750	HB0998- 21 -LRB103 03557 HLH 48563 b HB0998 - 21 - LRB103 03557 HLH 48563 b
751	751	HB0998 - 21 - LRB103 03557 HLH 48563 b
752	752	1 taxpayer, a partner of a partnership, or a shareholder
753	753	2 in a Subchapter S corporation for health insurance or
754	754	3 long-term care insurance for that taxpayer or that
755	755	4 taxpayer's spouse or dependents, to the extent that
756	756	5 the amount paid for that health insurance or long-term
757	757	6 care insurance may be deducted under Section 213 of
758	758	7 the Internal Revenue Code, has not been deducted on
759	759	8 the federal income tax return of the taxpayer, and
760	760	9 does not exceed the taxable income attributable to
761	761	10 that taxpayer's income, self-employment income, or
762	762	11 Subchapter S corporation income; except that no
763	763	12 deduction shall be allowed under this item (V) if the
764	764	13 taxpayer is eligible to participate in any health
765	765	14 insurance or long-term care insurance plan of an
766	766	15 employer of the taxpayer or the taxpayer's spouse. The
767	767	16 amount of the health insurance and long-term care
768	768	17 insurance subtracted under this item (V) shall be
769	769	18 determined by multiplying total health insurance and
770	770	19 long-term care insurance premiums paid by the taxpayer
771	771	20 times a number that represents the fractional
772	772	21 percentage of eligible medical expenses under Section
773	773	22 213 of the Internal Revenue Code of 1986 not actually
774	774	23 deducted on the taxpayer's federal income tax return;
775	775	24 (W) For taxable years beginning on or after
776	776	25 January 1, 1998, all amounts included in the
777	777	26 taxpayer's federal gross income in the taxable year
778	778
779	779
780	780
781	781
782	782
783	783	HB0998 - 21 - LRB103 03557 HLH 48563 b
784	784
785	785
786	786	HB0998- 22 -LRB103 03557 HLH 48563 b HB0998 - 22 - LRB103 03557 HLH 48563 b
787	787	HB0998 - 22 - LRB103 03557 HLH 48563 b
788	788	1 from amounts converted from a regular IRA to a Roth
789	789	2 IRA. This paragraph is exempt from the provisions of
790	790	3 Section 250;
791	791	4 (X) For taxable year 1999 and thereafter, an
792	792	5 amount equal to the amount of any (i) distributions,
793	793	6 to the extent includible in gross income for federal
794	794	7 income tax purposes, made to the taxpayer because of
795	795	8 his or her status as a victim of persecution for racial
796	796	9 or religious reasons by Nazi Germany or any other Axis
797	797	10 regime or as an heir of the victim and (ii) items of
798	798	11 income, to the extent includible in gross income for
799	799	12 federal income tax purposes, attributable to, derived
800	800	13 from or in any way related to assets stolen from,
801	801	14 hidden from, or otherwise lost to a victim of
802	802	15 persecution for racial or religious reasons by Nazi
803	803	16 Germany or any other Axis regime immediately prior to,
804	804	17 during, and immediately after World War II, including,
805	805	18 but not limited to, interest on the proceeds
806	806	19 receivable as insurance under policies issued to a
807	807	20 victim of persecution for racial or religious reasons
808	808	21 by Nazi Germany or any other Axis regime by European
809	809	22 insurance companies immediately prior to and during
810	810	23 World War II; provided, however, this subtraction from
811	811	24 federal adjusted gross income does not apply to assets
812	812	25 acquired with such assets or with the proceeds from
813	813	26 the sale of such assets; provided, further, this
814	814
815	815
816	816
817	817
818	818
819	819	HB0998 - 22 - LRB103 03557 HLH 48563 b
820	820
821	821
822	822	HB0998- 23 -LRB103 03557 HLH 48563 b HB0998 - 23 - LRB103 03557 HLH 48563 b
823	823	HB0998 - 23 - LRB103 03557 HLH 48563 b
824	824	1 paragraph shall only apply to a taxpayer who was the
825	825	2 first recipient of such assets after their recovery
826	826	3 and who is a victim of persecution for racial or
827	827	4 religious reasons by Nazi Germany or any other Axis
828	828	5 regime or as an heir of the victim. The amount of and
829	829	6 the eligibility for any public assistance, benefit, or
830	830	7 similar entitlement is not affected by the inclusion
831	831	8 of items (i) and (ii) of this paragraph in gross income
832	832	9 for federal income tax purposes. This paragraph is
833	833	10 exempt from the provisions of Section 250;
834	834	11 (Y) For taxable years beginning on or after
835	835	12 January 1, 2002 and ending on or before December 31,
836	836	13 2004, moneys contributed in the taxable year to a
837	837	14 College Savings Pool account under Section 16.5 of the
838	838	15 State Treasurer Act, except that amounts excluded from
839	839	16 gross income under Section 529(c)(3)(C)(i) of the
840	840	17 Internal Revenue Code shall not be considered moneys
841	841	18 contributed under this subparagraph (Y). For taxable
842	842	19 years beginning on or after January 1, 2005, a maximum
843	843	20 of $10,000 contributed in the taxable year to (i) a
844	844	21 College Savings Pool account under Section 16.5 of the
845	845	22 State Treasurer Act or (ii) the Illinois Prepaid
846	846	23 Tuition Trust Fund, except that amounts excluded from
847	847	24 gross income under Section 529(c)(3)(C)(i) of the
848	848	25 Internal Revenue Code shall not be considered moneys
849	849	26 contributed under this subparagraph (Y). For purposes
850	850
851	851
852	852
853	853
854	854
855	855	HB0998 - 23 - LRB103 03557 HLH 48563 b
856	856
857	857
858	858	HB0998- 24 -LRB103 03557 HLH 48563 b HB0998 - 24 - LRB103 03557 HLH 48563 b
859	859	HB0998 - 24 - LRB103 03557 HLH 48563 b
860	860	1 of this subparagraph, contributions made by an
861	861	2 employer on behalf of an employee, or matching
862	862	3 contributions made by an employee, shall be treated as
863	863	4 made by the employee. This subparagraph (Y) is exempt
864	864	5 from the provisions of Section 250;
865	865	6 (Z) For taxable years 2001 and thereafter, for the
866	866	7 taxable year in which the bonus depreciation deduction
867	867	8 is taken on the taxpayer's federal income tax return
868	868	9 under subsection (k) of Section 168 of the Internal
869	869	10 Revenue Code and for each applicable taxable year
870	870	11 thereafter, an amount equal to "x", where:
871	871	12 (1) "y" equals the amount of the depreciation
872	872	13 deduction taken for the taxable year on the
873	873	14 taxpayer's federal income tax return on property
874	874	15 for which the bonus depreciation deduction was
875	875	16 taken in any year under subsection (k) of Section
876	876	17 168 of the Internal Revenue Code, but not
877	877	18 including the bonus depreciation deduction;
878	878	19 (2) for taxable years ending on or before
879	879	20 December 31, 2005, "x" equals "y" multiplied by 30
880	880	21 and then divided by 70 (or "y" multiplied by
881	881	22 0.429); and
882	882	23 (3) for taxable years ending after December
883	883	24 31, 2005:
884	884	25 (i) for property on which a bonus
885	885	26 depreciation deduction of 30% of the adjusted
886	886
887	887
888	888
889	889
890	890
891	891	HB0998 - 24 - LRB103 03557 HLH 48563 b
892	892
893	893
894	894	HB0998- 25 -LRB103 03557 HLH 48563 b HB0998 - 25 - LRB103 03557 HLH 48563 b
895	895	HB0998 - 25 - LRB103 03557 HLH 48563 b
896	896	1 basis was taken, "x" equals "y" multiplied by
897	897	2 30 and then divided by 70 (or "y" multiplied
898	898	3 by 0.429);
899	899	4 (ii) for property on which a bonus
900	900	5 depreciation deduction of 50% of the adjusted
901	901	6 basis was taken, "x" equals "y" multiplied by
902	902	7 1.0;
903	903	8 (iii) for property on which a bonus
904	904	9 depreciation deduction of 100% of the adjusted
905	905	10 basis was taken in a taxable year ending on or
906	906	11 after December 31, 2021, "x" equals the
907	907	12 depreciation deduction that would be allowed
908	908	13 on that property if the taxpayer had made the
909	909	14 election under Section 168(k)(7) of the
910	910	15 Internal Revenue Code to not claim bonus
911	911	16 depreciation on that property; and
912	912	17 (iv) for property on which a bonus
913	913	18 depreciation deduction of a percentage other
914	914	19 than 30%, 50% or 100% of the adjusted basis
915	915	20 was taken in a taxable year ending on or after
916	916	21 December 31, 2021, "x" equals "y" multiplied
917	917	22 by 100 times the percentage bonus depreciation
918	918	23 on the property (that is, 100(bonus%)) and
919	919	24 then divided by 100 times 1 minus the
920	920	25 percentage bonus depreciation on the property
921	921	26 (that is, 100(1bonus%)).
922	922
923	923
924	924
925	925
926	926
927	927	HB0998 - 25 - LRB103 03557 HLH 48563 b
928	928
929	929
930	930	HB0998- 26 -LRB103 03557 HLH 48563 b HB0998 - 26 - LRB103 03557 HLH 48563 b
931	931	HB0998 - 26 - LRB103 03557 HLH 48563 b
932	932	1 The aggregate amount deducted under this
933	933	2 subparagraph in all taxable years for any one piece of
934	934	3 property may not exceed the amount of the bonus
935	935	4 depreciation deduction taken on that property on the
936	936	5 taxpayer's federal income tax return under subsection
937	937	6 (k) of Section 168 of the Internal Revenue Code. This
938	938	7 subparagraph (Z) is exempt from the provisions of
939	939	8 Section 250;
940	940	9 (AA) If the taxpayer sells, transfers, abandons,
941	941	10 or otherwise disposes of property for which the
942	942	11 taxpayer was required in any taxable year to make an
943	943	12 addition modification under subparagraph (D-15), then
944	944	13 an amount equal to that addition modification.
945	945	14 If the taxpayer continues to own property through
946	946	15 the last day of the last tax year for which a
947	947	16 subtraction is allowed with respect to that property
948	948	17 under subparagraph (Z) and for which the taxpayer was
949	949	18 required in any taxable year to make an addition
950	950	19 modification under subparagraph (D-15), then an amount
951	951	20 equal to that addition modification.
952	952	21 The taxpayer is allowed to take the deduction
953	953	22 under this subparagraph only once with respect to any
954	954	23 one piece of property.
955	955	24 This subparagraph (AA) is exempt from the
956	956	25 provisions of Section 250;
957	957	26 (BB) Any amount included in adjusted gross income,
958	958
959	959
960	960
961	961
962	962
963	963	HB0998 - 26 - LRB103 03557 HLH 48563 b
964	964
965	965
966	966	HB0998- 27 -LRB103 03557 HLH 48563 b HB0998 - 27 - LRB103 03557 HLH 48563 b
967	967	HB0998 - 27 - LRB103 03557 HLH 48563 b
968	968	1 other than salary, received by a driver in a
969	969	2 ridesharing arrangement using a motor vehicle;
970	970	3 (CC) The amount of (i) any interest income (net of
971	971	4 the deductions allocable thereto) taken into account
972	972	5 for the taxable year with respect to a transaction
973	973	6 with a taxpayer that is required to make an addition
974	974	7 modification with respect to such transaction under
975	975	8 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
976	976	9 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
977	977	10 the amount of that addition modification, and (ii) any
978	978	11 income from intangible property (net of the deductions
979	979	12 allocable thereto) taken into account for the taxable
980	980	13 year with respect to a transaction with a taxpayer
981	981	14 that is required to make an addition modification with
982	982	15 respect to such transaction under Section
983	983	16 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
984	984	17 203(d)(2)(D-8), but not to exceed the amount of that
985	985	18 addition modification. This subparagraph (CC) is
986	986	19 exempt from the provisions of Section 250;
987	987	20 (DD) An amount equal to the interest income taken
988	988	21 into account for the taxable year (net of the
989	989	22 deductions allocable thereto) with respect to
990	990	23 transactions with (i) a foreign person who would be a
991	991	24 member of the taxpayer's unitary business group but
992	992	25 for the fact that the foreign person's business
993	993	26 activity outside the United States is 80% or more of
994	994
995	995
996	996
997	997
998	998
999	999	HB0998 - 27 - LRB103 03557 HLH 48563 b
1000	1000
1001	1001
1002	1002	HB0998- 28 -LRB103 03557 HLH 48563 b HB0998 - 28 - LRB103 03557 HLH 48563 b
1003	1003	HB0998 - 28 - LRB103 03557 HLH 48563 b
1004	1004	1 that person's total business activity and (ii) for
1005	1005	2 taxable years ending on or after December 31, 2008, to
1006	1006	3 a person who would be a member of the same unitary
1007	1007	4 business group but for the fact that the person is
1008	1008	5 prohibited under Section 1501(a)(27) from being
1009	1009	6 included in the unitary business group because he or
1010	1010	7 she is ordinarily required to apportion business
1011	1011	8 income under different subsections of Section 304, but
1012	1012	9 not to exceed the addition modification required to be
1013	1013	10 made for the same taxable year under Section
1014	1014	11 203(a)(2)(D-17) for interest paid, accrued, or
1015	1015	12 incurred, directly or indirectly, to the same person.
1016	1016	13 This subparagraph (DD) is exempt from the provisions
1017	1017	14 of Section 250;
1018	1018	15 (EE) An amount equal to the income from intangible
1019	1019	16 property taken into account for the taxable year (net
1020	1020	17 of the deductions allocable thereto) with respect to
1021	1021	18 transactions with (i) a foreign person who would be a
1022	1022	19 member of the taxpayer's unitary business group but
1023	1023	20 for the fact that the foreign person's business
1024	1024	21 activity outside the United States is 80% or more of
1025	1025	22 that person's total business activity and (ii) for
1026	1026	23 taxable years ending on or after December 31, 2008, to
1027	1027	24 a person who would be a member of the same unitary
1028	1028	25 business group but for the fact that the person is
1029	1029	26 prohibited under Section 1501(a)(27) from being
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035	HB0998 - 28 - LRB103 03557 HLH 48563 b
1036	1036
1037	1037
1038	1038	HB0998- 29 -LRB103 03557 HLH 48563 b HB0998 - 29 - LRB103 03557 HLH 48563 b
1039	1039	HB0998 - 29 - LRB103 03557 HLH 48563 b
1040	1040	1 included in the unitary business group because he or
1041	1041	2 she is ordinarily required to apportion business
1042	1042	3 income under different subsections of Section 304, but
1043	1043	4 not to exceed the addition modification required to be
1044	1044	5 made for the same taxable year under Section
1045	1045	6 203(a)(2)(D-18) for intangible expenses and costs
1046	1046	7 paid, accrued, or incurred, directly or indirectly, to
1047	1047	8 the same foreign person. This subparagraph (EE) is
1048	1048	9 exempt from the provisions of Section 250;
1049	1049	10 (FF) An amount equal to any amount awarded to the
1050	1050	11 taxpayer during the taxable year by the Court of
1051	1051	12 Claims under subsection (c) of Section 8 of the Court
1052	1052	13 of Claims Act for time unjustly served in a State
1053	1053	14 prison. This subparagraph (FF) is exempt from the
1054	1054	15 provisions of Section 250;
1055	1055	16 (GG) For taxable years ending on or after December
1056	1056	17 31, 2011, in the case of a taxpayer who was required to
1057	1057	18 add back any insurance premiums under Section
1058	1058	19 203(a)(2)(D-19), such taxpayer may elect to subtract
1059	1059	20 that part of a reimbursement received from the
1060	1060	21 insurance company equal to the amount of the expense
1061	1061	22 or loss (including expenses incurred by the insurance
1062	1062	23 company) that would have been taken into account as a
1063	1063	24 deduction for federal income tax purposes if the
1064	1064	25 expense or loss had been uninsured. If a taxpayer
1065	1065	26 makes the election provided for by this subparagraph
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071	HB0998 - 29 - LRB103 03557 HLH 48563 b
1072	1072
1073	1073
1074	1074	HB0998- 30 -LRB103 03557 HLH 48563 b HB0998 - 30 - LRB103 03557 HLH 48563 b
1075	1075	HB0998 - 30 - LRB103 03557 HLH 48563 b
1076	1076	1 (GG), the insurer to which the premiums were paid must
1077	1077	2 add back to income the amount subtracted by the
1078	1078	3 taxpayer pursuant to this subparagraph (GG). This
1079	1079	4 subparagraph (GG) is exempt from the provisions of
1080	1080	5 Section 250; and
1081	1081	6 (HH) For taxable years beginning on or after
1082	1082	7 January 1, 2018 and prior to January 1, 2023, a maximum
1083	1083	8 of $10,000 contributed in the taxable year to a
1084	1084	9 qualified ABLE account under Section 16.6 of the State
1085	1085	10 Treasurer Act, except that amounts excluded from gross
1086	1086	11 income under Section 529(c)(3)(C)(i) or Section
1087	1087	12 529A(c)(1)(C) of the Internal Revenue Code shall not
1088	1088	13 be considered moneys contributed under this
1089	1089	14 subparagraph (HH). For purposes of this subparagraph
1090	1090	15 (HH), contributions made by an employer on behalf of
1091	1091	16 an employee, or matching contributions made by an
1092	1092	17 employee, shall be treated as made by the employee;
1093	1093	18 and .
1094	1094	19 (II) For taxable years beginning on or after
1095	1095	20 January 1, 2024, the amount of any federal deduction
1096	1096	21 disallowed pursuant to Section 280E of the Internal
1097	1097	22 Revenue Code related to the production and
1098	1098	23 distribution of adult-use cannabis products by an
1099	1099	24 entity licensed under the Cannabis Regulation and Tax
1100	1100	25 Act, if those amounts are not used as the basis for any
1101	1101	26 other tax deduction, exemption, or credit and not
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107	HB0998 - 30 - LRB103 03557 HLH 48563 b
1108	1108
1109	1109
1110	1110	HB0998- 31 -LRB103 03557 HLH 48563 b HB0998 - 31 - LRB103 03557 HLH 48563 b
1111	1111	HB0998 - 31 - LRB103 03557 HLH 48563 b
1112	1112	1 otherwise required to be added back when computing the
1113	1113	2 taxpayer's base income under this Section. This
1114	1114	3 subparagraph (II) is exempt from the provisions of
1115	1115	4 Section 250.
1116	1116	5 (b) Corporations.
1117	1117	6 (1) In general. In the case of a corporation, base
1118	1118	7 income means an amount equal to the taxpayer's taxable
1119	1119	8 income for the taxable year as modified by paragraph (2).
1120	1120	9 (2) Modifications. The taxable income referred to in
1121	1121	10 paragraph (1) shall be modified by adding thereto the sum
1122	1122	11 of the following amounts:
1123	1123	12 (A) An amount equal to all amounts paid or accrued
1124	1124	13 to the taxpayer as interest and all distributions
1125	1125	14 received from regulated investment companies during
1126	1126	15 the taxable year to the extent excluded from gross
1127	1127	16 income in the computation of taxable income;
1128	1128	17 (B) An amount equal to the amount of tax imposed by
1129	1129	18 this Act to the extent deducted from gross income in
1130	1130	19 the computation of taxable income for the taxable
1131	1131	20 year;
1132	1132	21 (C) In the case of a regulated investment company,
1133	1133	22 an amount equal to the excess of (i) the net long-term
1134	1134	23 capital gain for the taxable year, over (ii) the
1135	1135	24 amount of the capital gain dividends designated as
1136	1136	25 such in accordance with Section 852(b)(3)(C) of the
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142	HB0998 - 31 - LRB103 03557 HLH 48563 b
1143	1143
1144	1144
1145	1145	HB0998- 32 -LRB103 03557 HLH 48563 b HB0998 - 32 - LRB103 03557 HLH 48563 b
1146	1146	HB0998 - 32 - LRB103 03557 HLH 48563 b
1147	1147	1 Internal Revenue Code and any amount designated under
1148	1148	2 Section 852(b)(3)(D) of the Internal Revenue Code,
1149	1149	3 attributable to the taxable year (this amendatory Act
1150	1150	4 of 1995 (Public Act 89-89) is declarative of existing
1151	1151	5 law and is not a new enactment);
1152	1152	6 (D) The amount of any net operating loss deduction
1153	1153	7 taken in arriving at taxable income, other than a net
1154	1154	8 operating loss carried forward from a taxable year
1155	1155	9 ending prior to December 31, 1986;
1156	1156	10 (E) For taxable years in which a net operating
1157	1157	11 loss carryback or carryforward from a taxable year
1158	1158	12 ending prior to December 31, 1986 is an element of
1159	1159	13 taxable income under paragraph (1) of subsection (e)
1160	1160	14 or subparagraph (E) of paragraph (2) of subsection
1161	1161	15 (e), the amount by which addition modifications other
1162	1162	16 than those provided by this subparagraph (E) exceeded
1163	1163	17 subtraction modifications in such earlier taxable
1164	1164	18 year, with the following limitations applied in the
1165	1165	19 order that they are listed:
1166	1166	20 (i) the addition modification relating to the
1167	1167	21 net operating loss carried back or forward to the
1168	1168	22 taxable year from any taxable year ending prior to
1169	1169	23 December 31, 1986 shall be reduced by the amount
1170	1170	24 of addition modification under this subparagraph
1171	1171	25 (E) which related to that net operating loss and
1172	1172	26 which was taken into account in calculating the
1173	1173
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178	HB0998 - 32 - LRB103 03557 HLH 48563 b
1179	1179
1180	1180
1181	1181	HB0998- 33 -LRB103 03557 HLH 48563 b HB0998 - 33 - LRB103 03557 HLH 48563 b
1182	1182	HB0998 - 33 - LRB103 03557 HLH 48563 b
1183	1183	1 base income of an earlier taxable year, and
1184	1184	2 (ii) the addition modification relating to the
1185	1185	3 net operating loss carried back or forward to the
1186	1186	4 taxable year from any taxable year ending prior to
1187	1187	5 December 31, 1986 shall not exceed the amount of
1188	1188	6 such carryback or carryforward;
1189	1189	7 For taxable years in which there is a net
1190	1190	8 operating loss carryback or carryforward from more
1191	1191	9 than one other taxable year ending prior to December
1192	1192	10 31, 1986, the addition modification provided in this
1193	1193	11 subparagraph (E) shall be the sum of the amounts
1194	1194	12 computed independently under the preceding provisions
1195	1195	13 of this subparagraph (E) for each such taxable year;
1196	1196	14 (E-5) For taxable years ending after December 31,
1197	1197	15 1997, an amount equal to any eligible remediation
1198	1198	16 costs that the corporation deducted in computing
1199	1199	17 adjusted gross income and for which the corporation
1200	1200	18 claims a credit under subsection (l) of Section 201;
1201	1201	19 (E-10) For taxable years 2001 and thereafter, an
1202	1202	20 amount equal to the bonus depreciation deduction taken
1203	1203	21 on the taxpayer's federal income tax return for the
1204	1204	22 taxable year under subsection (k) of Section 168 of
1205	1205	23 the Internal Revenue Code;
1206	1206	24 (E-11) If the taxpayer sells, transfers, abandons,
1207	1207	25 or otherwise disposes of property for which the
1208	1208	26 taxpayer was required in any taxable year to make an
1209	1209
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214	HB0998 - 33 - LRB103 03557 HLH 48563 b
1215	1215
1216	1216
1217	1217	HB0998- 34 -LRB103 03557 HLH 48563 b HB0998 - 34 - LRB103 03557 HLH 48563 b
1218	1218	HB0998 - 34 - LRB103 03557 HLH 48563 b
1219	1219	1 addition modification under subparagraph (E-10), then
1220	1220	2 an amount equal to the aggregate amount of the
1221	1221	3 deductions taken in all taxable years under
1222	1222	4 subparagraph (T) with respect to that property.
1223	1223	5 If the taxpayer continues to own property through
1224	1224	6 the last day of the last tax year for which a
1225	1225	7 subtraction is allowed with respect to that property
1226	1226	8 under subparagraph (T) and for which the taxpayer was
1227	1227	9 allowed in any taxable year to make a subtraction
1228	1228	10 modification under subparagraph (T), then an amount
1229	1229	11 equal to that subtraction modification.
1230	1230	12 The taxpayer is required to make the addition
1231	1231	13 modification under this subparagraph only once with
1232	1232	14 respect to any one piece of property;
1233	1233	15 (E-12) An amount equal to the amount otherwise
1234	1234	16 allowed as a deduction in computing base income for
1235	1235	17 interest paid, accrued, or incurred, directly or
1236	1236	18 indirectly, (i) for taxable years ending on or after
1237	1237	19 December 31, 2004, to a foreign person who would be a
1238	1238	20 member of the same unitary business group but for the
1239	1239	21 fact the foreign person's business activity outside
1240	1240	22 the United States is 80% or more of the foreign
1241	1241	23 person's total business activity and (ii) for taxable
1242	1242	24 years ending on or after December 31, 2008, to a person
1243	1243	25 who would be a member of the same unitary business
1244	1244	26 group but for the fact that the person is prohibited
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250	HB0998 - 34 - LRB103 03557 HLH 48563 b
1251	1251
1252	1252
1253	1253	HB0998- 35 -LRB103 03557 HLH 48563 b HB0998 - 35 - LRB103 03557 HLH 48563 b
1254	1254	HB0998 - 35 - LRB103 03557 HLH 48563 b
1255	1255	1 under Section 1501(a)(27) from being included in the
1256	1256	2 unitary business group because he or she is ordinarily
1257	1257	3 required to apportion business income under different
1258	1258	4 subsections of Section 304. The addition modification
1259	1259	5 required by this subparagraph shall be reduced to the
1260	1260	6 extent that dividends were included in base income of
1261	1261	7 the unitary group for the same taxable year and
1262	1262	8 received by the taxpayer or by a member of the
1263	1263	9 taxpayer's unitary business group (including amounts
1264	1264	10 included in gross income pursuant to Sections 951
1265	1265	11 through 964 of the Internal Revenue Code and amounts
1266	1266	12 included in gross income under Section 78 of the
1267	1267	13 Internal Revenue Code) with respect to the stock of
1268	1268	14 the same person to whom the interest was paid,
1269	1269	15 accrued, or incurred.
1270	1270	16 This paragraph shall not apply to the following:
1271	1271	17 (i) an item of interest paid, accrued, or
1272	1272	18 incurred, directly or indirectly, to a person who
1273	1273	19 is subject in a foreign country or state, other
1274	1274	20 than a state which requires mandatory unitary
1275	1275	21 reporting, to a tax on or measured by net income
1276	1276	22 with respect to such interest; or
1277	1277	23 (ii) an item of interest paid, accrued, or
1278	1278	24 incurred, directly or indirectly, to a person if
1279	1279	25 the taxpayer can establish, based on a
1280	1280	26 preponderance of the evidence, both of the
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286	HB0998 - 35 - LRB103 03557 HLH 48563 b
1287	1287
1288	1288
1289	1289	HB0998- 36 -LRB103 03557 HLH 48563 b HB0998 - 36 - LRB103 03557 HLH 48563 b
1290	1290	HB0998 - 36 - LRB103 03557 HLH 48563 b
1291	1291	1 following:
1292	1292	2 (a) the person, during the same taxable
1293	1293	3 year, paid, accrued, or incurred, the interest
1294	1294	4 to a person that is not a related member, and
1295	1295	5 (b) the transaction giving rise to the
1296	1296	6 interest expense between the taxpayer and the
1297	1297	7 person did not have as a principal purpose the
1298	1298	8 avoidance of Illinois income tax, and is paid
1299	1299	9 pursuant to a contract or agreement that
1300	1300	10 reflects an arm's-length interest rate and
1301	1301	11 terms; or
1302	1302	12 (iii) the taxpayer can establish, based on
1303	1303	13 clear and convincing evidence, that the interest
1304	1304	14 paid, accrued, or incurred relates to a contract
1305	1305	15 or agreement entered into at arm's-length rates
1306	1306	16 and terms and the principal purpose for the
1307	1307	17 payment is not federal or Illinois tax avoidance;
1308	1308	18 or
1309	1309	19 (iv) an item of interest paid, accrued, or
1310	1310	20 incurred, directly or indirectly, to a person if
1311	1311	21 the taxpayer establishes by clear and convincing
1312	1312	22 evidence that the adjustments are unreasonable; or
1313	1313	23 if the taxpayer and the Director agree in writing
1314	1314	24 to the application or use of an alternative method
1315	1315	25 of apportionment under Section 304(f).
1316	1316	26 Nothing in this subsection shall preclude the
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322	HB0998 - 36 - LRB103 03557 HLH 48563 b
1323	1323
1324	1324
1325	1325	HB0998- 37 -LRB103 03557 HLH 48563 b HB0998 - 37 - LRB103 03557 HLH 48563 b
1326	1326	HB0998 - 37 - LRB103 03557 HLH 48563 b
1327	1327	1 Director from making any other adjustment
1328	1328	2 otherwise allowed under Section 404 of this Act
1329	1329	3 for any tax year beginning after the effective
1330	1330	4 date of this amendment provided such adjustment is
1331	1331	5 made pursuant to regulation adopted by the
1332	1332	6 Department and such regulations provide methods
1333	1333	7 and standards by which the Department will utilize
1334	1334	8 its authority under Section 404 of this Act;
1335	1335	9 (E-13) An amount equal to the amount of intangible
1336	1336	10 expenses and costs otherwise allowed as a deduction in
1337	1337	11 computing base income, and that were paid, accrued, or
1338	1338	12 incurred, directly or indirectly, (i) for taxable
1339	1339	13 years ending on or after December 31, 2004, to a
1340	1340	14 foreign person who would be a member of the same
1341	1341	15 unitary business group but for the fact that the
1342	1342	16 foreign person's business activity outside the United
1343	1343	17 States is 80% or more of that person's total business
1344	1344	18 activity and (ii) for taxable years ending on or after
1345	1345	19 December 31, 2008, to a person who would be a member of
1346	1346	20 the same unitary business group but for the fact that
1347	1347	21 the person is prohibited under Section 1501(a)(27)
1348	1348	22 from being included in the unitary business group
1349	1349	23 because he or she is ordinarily required to apportion
1350	1350	24 business income under different subsections of Section
1351	1351	25 304. The addition modification required by this
1352	1352	26 subparagraph shall be reduced to the extent that
1353	1353
1354	1354
1355	1355
1356	1356
1357	1357
1358	1358	HB0998 - 37 - LRB103 03557 HLH 48563 b
1359	1359
1360	1360
1361	1361	HB0998- 38 -LRB103 03557 HLH 48563 b HB0998 - 38 - LRB103 03557 HLH 48563 b
1362	1362	HB0998 - 38 - LRB103 03557 HLH 48563 b
1363	1363	1 dividends were included in base income of the unitary
1364	1364	2 group for the same taxable year and received by the
1365	1365	3 taxpayer or by a member of the taxpayer's unitary
1366	1366	4 business group (including amounts included in gross
1367	1367	5 income pursuant to Sections 951 through 964 of the
1368	1368	6 Internal Revenue Code and amounts included in gross
1369	1369	7 income under Section 78 of the Internal Revenue Code)
1370	1370	8 with respect to the stock of the same person to whom
1371	1371	9 the intangible expenses and costs were directly or
1372	1372	10 indirectly paid, incurred, or accrued. The preceding
1373	1373	11 sentence shall not apply to the extent that the same
1374	1374	12 dividends caused a reduction to the addition
1375	1375	13 modification required under Section 203(b)(2)(E-12) of
1376	1376	14 this Act. As used in this subparagraph, the term
1377	1377	15 "intangible expenses and costs" includes (1) expenses,
1378	1378	16 losses, and costs for, or related to, the direct or
1379	1379	17 indirect acquisition, use, maintenance or management,
1380	1380	18 ownership, sale, exchange, or any other disposition of
1381	1381	19 intangible property; (2) losses incurred, directly or
1382	1382	20 indirectly, from factoring transactions or discounting
1383	1383	21 transactions; (3) royalty, patent, technical, and
1384	1384	22 copyright fees; (4) licensing fees; and (5) other
1385	1385	23 similar expenses and costs. For purposes of this
1386	1386	24 subparagraph, "intangible property" includes patents,
1387	1387	25 patent applications, trade names, trademarks, service
1388	1388	26 marks, copyrights, mask works, trade secrets, and
1389	1389
1390	1390
1391	1391
1392	1392
1393	1393
1394	1394	HB0998 - 38 - LRB103 03557 HLH 48563 b
1395	1395
1396	1396
1397	1397	HB0998- 39 -LRB103 03557 HLH 48563 b HB0998 - 39 - LRB103 03557 HLH 48563 b
1398	1398	HB0998 - 39 - LRB103 03557 HLH 48563 b
1399	1399	1 similar types of intangible assets.
1400	1400	2 This paragraph shall not apply to the following:
1401	1401	3 (i) any item of intangible expenses or costs
1402	1402	4 paid, accrued, or incurred, directly or
1403	1403	5 indirectly, from a transaction with a person who
1404	1404	6 is subject in a foreign country or state, other
1405	1405	7 than a state which requires mandatory unitary
1406	1406	8 reporting, to a tax on or measured by net income
1407	1407	9 with respect to such item; or
1408	1408	10 (ii) any item of intangible expense or cost
1409	1409	11 paid, accrued, or incurred, directly or
1410	1410	12 indirectly, if the taxpayer can establish, based
1411	1411	13 on a preponderance of the evidence, both of the
1412	1412	14 following:
1413	1413	15 (a) the person during the same taxable
1414	1414	16 year paid, accrued, or incurred, the
1415	1415	17 intangible expense or cost to a person that is
1416	1416	18 not a related member, and
1417	1417	19 (b) the transaction giving rise to the
1418	1418	20 intangible expense or cost between the
1419	1419	21 taxpayer and the person did not have as a
1420	1420	22 principal purpose the avoidance of Illinois
1421	1421	23 income tax, and is paid pursuant to a contract
1422	1422	24 or agreement that reflects arm's-length terms;
1423	1423	25 or
1424	1424	26 (iii) any item of intangible expense or cost
1425	1425
1426	1426
1427	1427
1428	1428
1429	1429
1430	1430	HB0998 - 39 - LRB103 03557 HLH 48563 b
1431	1431
1432	1432
1433	1433	HB0998- 40 -LRB103 03557 HLH 48563 b HB0998 - 40 - LRB103 03557 HLH 48563 b
1434	1434	HB0998 - 40 - LRB103 03557 HLH 48563 b
1435	1435	1 paid, accrued, or incurred, directly or
1436	1436	2 indirectly, from a transaction with a person if
1437	1437	3 the taxpayer establishes by clear and convincing
1438	1438	4 evidence, that the adjustments are unreasonable;
1439	1439	5 or if the taxpayer and the Director agree in
1440	1440	6 writing to the application or use of an
1441	1441	7 alternative method of apportionment under Section
1442	1442	8 304(f);
1443	1443	9 Nothing in this subsection shall preclude the
1444	1444	10 Director from making any other adjustment
1445	1445	11 otherwise allowed under Section 404 of this Act
1446	1446	12 for any tax year beginning after the effective
1447	1447	13 date of this amendment provided such adjustment is
1448	1448	14 made pursuant to regulation adopted by the
1449	1449	15 Department and such regulations provide methods
1450	1450	16 and standards by which the Department will utilize
1451	1451	17 its authority under Section 404 of this Act;
1452	1452	18 (E-14) For taxable years ending on or after
1453	1453	19 December 31, 2008, an amount equal to the amount of
1454	1454	20 insurance premium expenses and costs otherwise allowed
1455	1455	21 as a deduction in computing base income, and that were
1456	1456	22 paid, accrued, or incurred, directly or indirectly, to
1457	1457	23 a person who would be a member of the same unitary
1458	1458	24 business group but for the fact that the person is
1459	1459	25 prohibited under Section 1501(a)(27) from being
1460	1460	26 included in the unitary business group because he or
1461	1461
1462	1462
1463	1463
1464	1464
1465	1465
1466	1466	HB0998 - 40 - LRB103 03557 HLH 48563 b
1467	1467
1468	1468
1469	1469	HB0998- 41 -LRB103 03557 HLH 48563 b HB0998 - 41 - LRB103 03557 HLH 48563 b
1470	1470	HB0998 - 41 - LRB103 03557 HLH 48563 b
1471	1471	1 she is ordinarily required to apportion business
1472	1472	2 income under different subsections of Section 304. The
1473	1473	3 addition modification required by this subparagraph
1474	1474	4 shall be reduced to the extent that dividends were
1475	1475	5 included in base income of the unitary group for the
1476	1476	6 same taxable year and received by the taxpayer or by a
1477	1477	7 member of the taxpayer's unitary business group
1478	1478	8 (including amounts included in gross income under
1479	1479	9 Sections 951 through 964 of the Internal Revenue Code
1480	1480	10 and amounts included in gross income under Section 78
1481	1481	11 of the Internal Revenue Code) with respect to the
1482	1482	12 stock of the same person to whom the premiums and costs
1483	1483	13 were directly or indirectly paid, incurred, or
1484	1484	14 accrued. The preceding sentence does not apply to the
1485	1485	15 extent that the same dividends caused a reduction to
1486	1486	16 the addition modification required under Section
1487	1487	17 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1488	1488	18 Act;
1489	1489	19 (E-15) For taxable years beginning after December
1490	1490	20 31, 2008, any deduction for dividends paid by a
1491	1491	21 captive real estate investment trust that is allowed
1492	1492	22 to a real estate investment trust under Section
1493	1493	23 857(b)(2)(B) of the Internal Revenue Code for
1494	1494	24 dividends paid;
1495	1495	25 (E-16) An amount equal to the credit allowable to
1496	1496	26 the taxpayer under Section 218(a) of this Act,
1497	1497
1498	1498
1499	1499
1500	1500
1501	1501
1502	1502	HB0998 - 41 - LRB103 03557 HLH 48563 b
1503	1503
1504	1504
1505	1505	HB0998- 42 -LRB103 03557 HLH 48563 b HB0998 - 42 - LRB103 03557 HLH 48563 b
1506	1506	HB0998 - 42 - LRB103 03557 HLH 48563 b
1507	1507	1 determined without regard to Section 218(c) of this
1508	1508	2 Act;
1509	1509	3 (E-17) For taxable years ending on or after
1510	1510	4 December 31, 2017, an amount equal to the deduction
1511	1511	5 allowed under Section 199 of the Internal Revenue Code
1512	1512	6 for the taxable year;
1513	1513	7 (E-18) for taxable years beginning after December
1514	1514	8 31, 2018, an amount equal to the deduction allowed
1515	1515	9 under Section 250(a)(1)(A) of the Internal Revenue
1516	1516	10 Code for the taxable year;
1517	1517	11 (E-19) for taxable years ending on or after June
1518	1518	12 30, 2021, an amount equal to the deduction allowed
1519	1519	13 under Section 250(a)(1)(B)(i) of the Internal Revenue
1520	1520	14 Code for the taxable year;
1521	1521	15 (E-20) for taxable years ending on or after June
1522	1522	16 30, 2021, an amount equal to the deduction allowed
1523	1523	17 under Sections 243(e) and 245A(a) of the Internal
1524	1524	18 Revenue Code for the taxable year.
1525	1525	19 and by deducting from the total so obtained the sum of the
1526	1526	20 following amounts:
1527	1527	21 (F) An amount equal to the amount of any tax
1528	1528	22 imposed by this Act which was refunded to the taxpayer
1529	1529	23 and included in such total for the taxable year;
1530	1530	24 (G) An amount equal to any amount included in such
1531	1531	25 total under Section 78 of the Internal Revenue Code;
1532	1532	26 (H) In the case of a regulated investment company,
1533	1533
1534	1534
1535	1535
1536	1536
1537	1537
1538	1538	HB0998 - 42 - LRB103 03557 HLH 48563 b
1539	1539
1540	1540
1541	1541	HB0998- 43 -LRB103 03557 HLH 48563 b HB0998 - 43 - LRB103 03557 HLH 48563 b
1542	1542	HB0998 - 43 - LRB103 03557 HLH 48563 b
1543	1543	1 an amount equal to the amount of exempt interest
1544	1544	2 dividends as defined in subsection (b)(5) of Section
1545	1545	3 852 of the Internal Revenue Code, paid to shareholders
1546	1546	4 for the taxable year;
1547	1547	5 (I) With the exception of any amounts subtracted
1548	1548	6 under subparagraph (J), an amount equal to the sum of
1549	1549	7 all amounts disallowed as deductions by (i) Sections
1550	1550	8 171(a)(2) and 265(a)(2) and amounts disallowed as
1551	1551	9 interest expense by Section 291(a)(3) of the Internal
1552	1552	10 Revenue Code, and all amounts of expenses allocable to
1553	1553	11 interest and disallowed as deductions by Section
1554	1554	12 265(a)(1) of the Internal Revenue Code; and (ii) for
1555	1555	13 taxable years ending on or after August 13, 1999,
1556	1556	14 Sections 171(a)(2), 265, 280C, 291(a)(3), and
1557	1557	15 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
1558	1558	16 for tax years ending on or after December 31, 2011,
1559	1559	17 amounts disallowed as deductions by Section 45G(e)(3)
1560	1560	18 of the Internal Revenue Code and, for taxable years
1561	1561	19 ending on or after December 31, 2008, any amount
1562	1562	20 included in gross income under Section 87 of the
1563	1563	21 Internal Revenue Code and the policyholders' share of
1564	1564	22 tax-exempt interest of a life insurance company under
1565	1565	23 Section 807(a)(2)(B) of the Internal Revenue Code (in
1566	1566	24 the case of a life insurance company with gross income
1567	1567	25 from a decrease in reserves for the tax year) or
1568	1568	26 Section 807(b)(1)(B) of the Internal Revenue Code (in
1569	1569
1570	1570
1571	1571
1572	1572
1573	1573
1574	1574	HB0998 - 43 - LRB103 03557 HLH 48563 b
1575	1575
1576	1576
1577	1577	HB0998- 44 -LRB103 03557 HLH 48563 b HB0998 - 44 - LRB103 03557 HLH 48563 b
1578	1578	HB0998 - 44 - LRB103 03557 HLH 48563 b
1579	1579	1 the case of a life insurance company allowed a
1580	1580	2 deduction for an increase in reserves for the tax
1581	1581	3 year); the provisions of this subparagraph are exempt
1582	1582	4 from the provisions of Section 250;
1583	1583	5 (J) An amount equal to all amounts included in
1584	1584	6 such total which are exempt from taxation by this
1585	1585	7 State either by reason of its statutes or Constitution
1586	1586	8 or by reason of the Constitution, treaties or statutes
1587	1587	9 of the United States; provided that, in the case of any
1588	1588	10 statute of this State that exempts income derived from
1589	1589	11 bonds or other obligations from the tax imposed under
1590	1590	12 this Act, the amount exempted shall be the interest
1591	1591	13 net of bond premium amortization;
1592	1592	14 (K) An amount equal to those dividends included in
1593	1593	15 such total which were paid by a corporation which
1594	1594	16 conducts business operations in a River Edge
1595	1595	17 Redevelopment Zone or zones created under the River
1596	1596	18 Edge Redevelopment Zone Act and conducts substantially
1597	1597	19 all of its operations in a River Edge Redevelopment
1598	1598	20 Zone or zones. This subparagraph (K) is exempt from
1599	1599	21 the provisions of Section 250;
1600	1600	22 (L) An amount equal to those dividends included in
1601	1601	23 such total that were paid by a corporation that
1602	1602	24 conducts business operations in a federally designated
1603	1603	25 Foreign Trade Zone or Sub-Zone and that is designated
1604	1604	26 a High Impact Business located in Illinois; provided
1605	1605
1606	1606
1607	1607
1608	1608
1609	1609
1610	1610	HB0998 - 44 - LRB103 03557 HLH 48563 b
1611	1611
1612	1612
1613	1613	HB0998- 45 -LRB103 03557 HLH 48563 b HB0998 - 45 - LRB103 03557 HLH 48563 b
1614	1614	HB0998 - 45 - LRB103 03557 HLH 48563 b
1615	1615	1 that dividends eligible for the deduction provided in
1616	1616	2 subparagraph (K) of paragraph 2 of this subsection
1617	1617	3 shall not be eligible for the deduction provided under
1618	1618	4 this subparagraph (L);
1619	1619	5 (M) For any taxpayer that is a financial
1620	1620	6 organization within the meaning of Section 304(c) of
1621	1621	7 this Act, an amount included in such total as interest
1622	1622	8 income from a loan or loans made by such taxpayer to a
1623	1623	9 borrower, to the extent that such a loan is secured by
1624	1624	10 property which is eligible for the River Edge
1625	1625	11 Redevelopment Zone Investment Credit. To determine the
1626	1626	12 portion of a loan or loans that is secured by property
1627	1627	13 eligible for a Section 201(f) investment credit to the
1628	1628	14 borrower, the entire principal amount of the loan or
1629	1629	15 loans between the taxpayer and the borrower should be
1630	1630	16 divided into the basis of the Section 201(f)
1631	1631	17 investment credit property which secures the loan or
1632	1632	18 loans, using for this purpose the original basis of
1633	1633	19 such property on the date that it was placed in service
1634	1634	20 in the River Edge Redevelopment Zone. The subtraction
1635	1635	21 modification available to the taxpayer in any year
1636	1636	22 under this subsection shall be that portion of the
1637	1637	23 total interest paid by the borrower with respect to
1638	1638	24 such loan attributable to the eligible property as
1639	1639	25 calculated under the previous sentence. This
1640	1640	26 subparagraph (M) is exempt from the provisions of
1641	1641
1642	1642
1643	1643
1644	1644
1645	1645
1646	1646	HB0998 - 45 - LRB103 03557 HLH 48563 b
1647	1647
1648	1648
1649	1649	HB0998- 46 -LRB103 03557 HLH 48563 b HB0998 - 46 - LRB103 03557 HLH 48563 b
1650	1650	HB0998 - 46 - LRB103 03557 HLH 48563 b
1651	1651	1 Section 250;
1652	1652	2 (M-1) For any taxpayer that is a financial
1653	1653	3 organization within the meaning of Section 304(c) of
1654	1654	4 this Act, an amount included in such total as interest
1655	1655	5 income from a loan or loans made by such taxpayer to a
1656	1656	6 borrower, to the extent that such a loan is secured by
1657	1657	7 property which is eligible for the High Impact
1658	1658	8 Business Investment Credit. To determine the portion
1659	1659	9 of a loan or loans that is secured by property eligible
1660	1660	10 for a Section 201(h) investment credit to the
1661	1661	11 borrower, the entire principal amount of the loan or
1662	1662	12 loans between the taxpayer and the borrower should be
1663	1663	13 divided into the basis of the Section 201(h)
1664	1664	14 investment credit property which secures the loan or
1665	1665	15 loans, using for this purpose the original basis of
1666	1666	16 such property on the date that it was placed in service
1667	1667	17 in a federally designated Foreign Trade Zone or
1668	1668	18 Sub-Zone located in Illinois. No taxpayer that is
1669	1669	19 eligible for the deduction provided in subparagraph
1670	1670	20 (M) of paragraph (2) of this subsection shall be
1671	1671	21 eligible for the deduction provided under this
1672	1672	22 subparagraph (M-1). The subtraction modification
1673	1673	23 available to taxpayers in any year under this
1674	1674	24 subsection shall be that portion of the total interest
1675	1675	25 paid by the borrower with respect to such loan
1676	1676	26 attributable to the eligible property as calculated
1677	1677
1678	1678
1679	1679
1680	1680
1681	1681
1682	1682	HB0998 - 46 - LRB103 03557 HLH 48563 b
1683	1683
1684	1684
1685	1685	HB0998- 47 -LRB103 03557 HLH 48563 b HB0998 - 47 - LRB103 03557 HLH 48563 b
1686	1686	HB0998 - 47 - LRB103 03557 HLH 48563 b
1687	1687	1 under the previous sentence;
1688	1688	2 (N) Two times any contribution made during the
1689	1689	3 taxable year to a designated zone organization to the
1690	1690	4 extent that the contribution (i) qualifies as a
1691	1691	5 charitable contribution under subsection (c) of
1692	1692	6 Section 170 of the Internal Revenue Code and (ii)
1693	1693	7 must, by its terms, be used for a project approved by
1694	1694	8 the Department of Commerce and Economic Opportunity
1695	1695	9 under Section 11 of the Illinois Enterprise Zone Act
1696	1696	10 or under Section 10-10 of the River Edge Redevelopment
1697	1697	11 Zone Act. This subparagraph (N) is exempt from the
1698	1698	12 provisions of Section 250;
1699	1699	13 (O) An amount equal to: (i) 85% for taxable years
1700	1700	14 ending on or before December 31, 1992, or, a
1701	1701	15 percentage equal to the percentage allowable under
1702	1702	16 Section 243(a)(1) of the Internal Revenue Code of 1986
1703	1703	17 for taxable years ending after December 31, 1992, of
1704	1704	18 the amount by which dividends included in taxable
1705	1705	19 income and received from a corporation that is not
1706	1706	20 created or organized under the laws of the United
1707	1707	21 States or any state or political subdivision thereof,
1708	1708	22 including, for taxable years ending on or after
1709	1709	23 December 31, 1988, dividends received or deemed
1710	1710	24 received or paid or deemed paid under Sections 951
1711	1711	25 through 965 of the Internal Revenue Code, exceed the
1712	1712	26 amount of the modification provided under subparagraph
1713	1713
1714	1714
1715	1715
1716	1716
1717	1717
1718	1718	HB0998 - 47 - LRB103 03557 HLH 48563 b
1719	1719
1720	1720
1721	1721	HB0998- 48 -LRB103 03557 HLH 48563 b HB0998 - 48 - LRB103 03557 HLH 48563 b
1722	1722	HB0998 - 48 - LRB103 03557 HLH 48563 b
1723	1723	1 (G) of paragraph (2) of this subsection (b) which is
1724	1724	2 related to such dividends, and including, for taxable
1725	1725	3 years ending on or after December 31, 2008, dividends
1726	1726	4 received from a captive real estate investment trust;
1727	1727	5 plus (ii) 100% of the amount by which dividends,
1728	1728	6 included in taxable income and received, including,
1729	1729	7 for taxable years ending on or after December 31,
1730	1730	8 1988, dividends received or deemed received or paid or
1731	1731	9 deemed paid under Sections 951 through 964 of the
1732	1732	10 Internal Revenue Code and including, for taxable years
1733	1733	11 ending on or after December 31, 2008, dividends
1734	1734	12 received from a captive real estate investment trust,
1735	1735	13 from any such corporation specified in clause (i) that
1736	1736	14 would but for the provisions of Section 1504(b)(3) of
1737	1737	15 the Internal Revenue Code be treated as a member of the
1738	1738	16 affiliated group which includes the dividend
1739	1739	17 recipient, exceed the amount of the modification
1740	1740	18 provided under subparagraph (G) of paragraph (2) of
1741	1741	19 this subsection (b) which is related to such
1742	1742	20 dividends. For taxable years ending on or after June
1743	1743	21 30, 2021, (i) for purposes of this subparagraph, the
1744	1744	22 term "dividend" does not include any amount treated as
1745	1745	23 a dividend under Section 1248 of the Internal Revenue
1746	1746	24 Code, and (ii) this subparagraph shall not apply to
1747	1747	25 dividends for which a deduction is allowed under
1748	1748	26 Section 245(a) of the Internal Revenue Code. This
1749	1749
1750	1750
1751	1751
1752	1752
1753	1753
1754	1754	HB0998 - 48 - LRB103 03557 HLH 48563 b
1755	1755
1756	1756
1757	1757	HB0998- 49 -LRB103 03557 HLH 48563 b HB0998 - 49 - LRB103 03557 HLH 48563 b
1758	1758	HB0998 - 49 - LRB103 03557 HLH 48563 b
1759	1759	1 subparagraph (O) is exempt from the provisions of
1760	1760	2 Section 250 of this Act;
1761	1761	3 (P) An amount equal to any contribution made to a
1762	1762	4 job training project established pursuant to the Tax
1763	1763	5 Increment Allocation Redevelopment Act;
1764	1764	6 (Q) An amount equal to the amount of the deduction
1765	1765	7 used to compute the federal income tax credit for
1766	1766	8 restoration of substantial amounts held under claim of
1767	1767	9 right for the taxable year pursuant to Section 1341 of
1768	1768	10 the Internal Revenue Code;
1769	1769	11 (R) On and after July 20, 1999, in the case of an
1770	1770	12 attorney-in-fact with respect to whom an interinsurer
1771	1771	13 or a reciprocal insurer has made the election under
1772	1772	14 Section 835 of the Internal Revenue Code, 26 U.S.C.
1773	1773	15 835, an amount equal to the excess, if any, of the
1774	1774	16 amounts paid or incurred by that interinsurer or
1775	1775	17 reciprocal insurer in the taxable year to the
1776	1776	18 attorney-in-fact over the deduction allowed to that
1777	1777	19 interinsurer or reciprocal insurer with respect to the
1778	1778	20 attorney-in-fact under Section 835(b) of the Internal
1779	1779	21 Revenue Code for the taxable year; the provisions of
1780	1780	22 this subparagraph are exempt from the provisions of
1781	1781	23 Section 250;
1782	1782	24 (S) For taxable years ending on or after December
1783	1783	25 31, 1997, in the case of a Subchapter S corporation, an
1784	1784	26 amount equal to all amounts of income allocable to a
1785	1785
1786	1786
1787	1787
1788	1788
1789	1789
1790	1790	HB0998 - 49 - LRB103 03557 HLH 48563 b
1791	1791
1792	1792
1793	1793	HB0998- 50 -LRB103 03557 HLH 48563 b HB0998 - 50 - LRB103 03557 HLH 48563 b
1794	1794	HB0998 - 50 - LRB103 03557 HLH 48563 b
1795	1795	1 shareholder subject to the Personal Property Tax
1796	1796	2 Replacement Income Tax imposed by subsections (c) and
1797	1797	3 (d) of Section 201 of this Act, including amounts
1798	1798	4 allocable to organizations exempt from federal income
1799	1799	5 tax by reason of Section 501(a) of the Internal
1800	1800	6 Revenue Code. This subparagraph (S) is exempt from the
1801	1801	7 provisions of Section 250;
1802	1802	8 (T) For taxable years 2001 and thereafter, for the
1803	1803	9 taxable year in which the bonus depreciation deduction
1804	1804	10 is taken on the taxpayer's federal income tax return
1805	1805	11 under subsection (k) of Section 168 of the Internal
1806	1806	12 Revenue Code and for each applicable taxable year
1807	1807	13 thereafter, an amount equal to "x", where:
1808	1808	14 (1) "y" equals the amount of the depreciation
1809	1809	15 deduction taken for the taxable year on the
1810	1810	16 taxpayer's federal income tax return on property
1811	1811	17 for which the bonus depreciation deduction was
1812	1812	18 taken in any year under subsection (k) of Section
1813	1813	19 168 of the Internal Revenue Code, but not
1814	1814	20 including the bonus depreciation deduction;
1815	1815	21 (2) for taxable years ending on or before
1816	1816	22 December 31, 2005, "x" equals "y" multiplied by 30
1817	1817	23 and then divided by 70 (or "y" multiplied by
1818	1818	24 0.429); and
1819	1819	25 (3) for taxable years ending after December
1820	1820	26 31, 2005:
1821	1821
1822	1822
1823	1823
1824	1824
1825	1825
1826	1826	HB0998 - 50 - LRB103 03557 HLH 48563 b
1827	1827
1828	1828
1829	1829	HB0998- 51 -LRB103 03557 HLH 48563 b HB0998 - 51 - LRB103 03557 HLH 48563 b
1830	1830	HB0998 - 51 - LRB103 03557 HLH 48563 b
1831	1831	1 (i) for property on which a bonus
1832	1832	2 depreciation deduction of 30% of the adjusted
1833	1833	3 basis was taken, "x" equals "y" multiplied by
1834	1834	4 30 and then divided by 70 (or "y" multiplied
1835	1835	5 by 0.429);
1836	1836	6 (ii) for property on which a bonus
1837	1837	7 depreciation deduction of 50% of the adjusted
1838	1838	8 basis was taken, "x" equals "y" multiplied by
1839	1839	9 1.0;
1840	1840	10 (iii) for property on which a bonus
1841	1841	11 depreciation deduction of 100% of the adjusted
1842	1842	12 basis was taken in a taxable year ending on or
1843	1843	13 after December 31, 2021, "x" equals the
1844	1844	14 depreciation deduction that would be allowed
1845	1845	15 on that property if the taxpayer had made the
1846	1846	16 election under Section 168(k)(7) of the
1847	1847	17 Internal Revenue Code to not claim bonus
1848	1848	18 depreciation on that property; and
1849	1849	19 (iv) for property on which a bonus
1850	1850	20 depreciation deduction of a percentage other
1851	1851	21 than 30%, 50% or 100% of the adjusted basis
1852	1852	22 was taken in a taxable year ending on or after
1853	1853	23 December 31, 2021, "x" equals "y" multiplied
1854	1854	24 by 100 times the percentage bonus depreciation
1855	1855	25 on the property (that is, 100(bonus%)) and
1856	1856	26 then divided by 100 times 1 minus the
1857	1857
1858	1858
1859	1859
1860	1860
1861	1861
1862	1862	HB0998 - 51 - LRB103 03557 HLH 48563 b
1863	1863
1864	1864
1865	1865	HB0998- 52 -LRB103 03557 HLH 48563 b HB0998 - 52 - LRB103 03557 HLH 48563 b
1866	1866	HB0998 - 52 - LRB103 03557 HLH 48563 b
1867	1867	1 percentage bonus depreciation on the property
1868	1868	2 (that is, 100(1bonus%)).
1869	1869	3 The aggregate amount deducted under this
1870	1870	4 subparagraph in all taxable years for any one piece of
1871	1871	5 property may not exceed the amount of the bonus
1872	1872	6 depreciation deduction taken on that property on the
1873	1873	7 taxpayer's federal income tax return under subsection
1874	1874	8 (k) of Section 168 of the Internal Revenue Code. This
1875	1875	9 subparagraph (T) is exempt from the provisions of
1876	1876	10 Section 250;
1877	1877	11 (U) If the taxpayer sells, transfers, abandons, or
1878	1878	12 otherwise disposes of property for which the taxpayer
1879	1879	13 was required in any taxable year to make an addition
1880	1880	14 modification under subparagraph (E-10), then an amount
1881	1881	15 equal to that addition modification.
1882	1882	16 If the taxpayer continues to own property through
1883	1883	17 the last day of the last tax year for which a
1884	1884	18 subtraction is allowed with respect to that property
1885	1885	19 under subparagraph (T) and for which the taxpayer was
1886	1886	20 required in any taxable year to make an addition
1887	1887	21 modification under subparagraph (E-10), then an amount
1888	1888	22 equal to that addition modification.
1889	1889	23 The taxpayer is allowed to take the deduction
1890	1890	24 under this subparagraph only once with respect to any
1891	1891	25 one piece of property.
1892	1892	26 This subparagraph (U) is exempt from the
1893	1893
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898	HB0998 - 52 - LRB103 03557 HLH 48563 b
1899	1899
1900	1900
1901	1901	HB0998- 53 -LRB103 03557 HLH 48563 b HB0998 - 53 - LRB103 03557 HLH 48563 b
1902	1902	HB0998 - 53 - LRB103 03557 HLH 48563 b
1903	1903	1 provisions of Section 250;
1904	1904	2 (V) The amount of: (i) any interest income (net of
1905	1905	3 the deductions allocable thereto) taken into account
1906	1906	4 for the taxable year with respect to a transaction
1907	1907	5 with a taxpayer that is required to make an addition
1908	1908	6 modification with respect to such transaction under
1909	1909	7 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1910	1910	8 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1911	1911	9 the amount of such addition modification, (ii) any
1912	1912	10 income from intangible property (net of the deductions
1913	1913	11 allocable thereto) taken into account for the taxable
1914	1914	12 year with respect to a transaction with a taxpayer
1915	1915	13 that is required to make an addition modification with
1916	1916	14 respect to such transaction under Section
1917	1917	15 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
1918	1918	16 203(d)(2)(D-8), but not to exceed the amount of such
1919	1919	17 addition modification, and (iii) any insurance premium
1920	1920	18 income (net of deductions allocable thereto) taken
1921	1921	19 into account for the taxable year with respect to a
1922	1922	20 transaction with a taxpayer that is required to make
1923	1923	21 an addition modification with respect to such
1924	1924	22 transaction under Section 203(a)(2)(D-19), Section
1925	1925	23 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
1926	1926	24 203(d)(2)(D-9), but not to exceed the amount of that
1927	1927	25 addition modification. This subparagraph (V) is exempt
1928	1928	26 from the provisions of Section 250;
1929	1929
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934	HB0998 - 53 - LRB103 03557 HLH 48563 b
1935	1935
1936	1936
1937	1937	HB0998- 54 -LRB103 03557 HLH 48563 b HB0998 - 54 - LRB103 03557 HLH 48563 b
1938	1938	HB0998 - 54 - LRB103 03557 HLH 48563 b
1939	1939	1 (W) An amount equal to the interest income taken
1940	1940	2 into account for the taxable year (net of the
1941	1941	3 deductions allocable thereto) with respect to
1942	1942	4 transactions with (i) a foreign person who would be a
1943	1943	5 member of the taxpayer's unitary business group but
1944	1944	6 for the fact that the foreign person's business
1945	1945	7 activity outside the United States is 80% or more of
1946	1946	8 that person's total business activity and (ii) for
1947	1947	9 taxable years ending on or after December 31, 2008, to
1948	1948	10 a person who would be a member of the same unitary
1949	1949	11 business group but for the fact that the person is
1950	1950	12 prohibited under Section 1501(a)(27) from being
1951	1951	13 included in the unitary business group because he or
1952	1952	14 she is ordinarily required to apportion business
1953	1953	15 income under different subsections of Section 304, but
1954	1954	16 not to exceed the addition modification required to be
1955	1955	17 made for the same taxable year under Section
1956	1956	18 203(b)(2)(E-12) for interest paid, accrued, or
1957	1957	19 incurred, directly or indirectly, to the same person.
1958	1958	20 This subparagraph (W) is exempt from the provisions of
1959	1959	21 Section 250;
1960	1960	22 (X) An amount equal to the income from intangible
1961	1961	23 property taken into account for the taxable year (net
1962	1962	24 of the deductions allocable thereto) with respect to
1963	1963	25 transactions with (i) a foreign person who would be a
1964	1964	26 member of the taxpayer's unitary business group but
1965	1965
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970	HB0998 - 54 - LRB103 03557 HLH 48563 b
1971	1971
1972	1972
1973	1973	HB0998- 55 -LRB103 03557 HLH 48563 b HB0998 - 55 - LRB103 03557 HLH 48563 b
1974	1974	HB0998 - 55 - LRB103 03557 HLH 48563 b
1975	1975	1 for the fact that the foreign person's business
1976	1976	2 activity outside the United States is 80% or more of
1977	1977	3 that person's total business activity and (ii) for
1978	1978	4 taxable years ending on or after December 31, 2008, to
1979	1979	5 a person who would be a member of the same unitary
1980	1980	6 business group but for the fact that the person is
1981	1981	7 prohibited under Section 1501(a)(27) from being
1982	1982	8 included in the unitary business group because he or
1983	1983	9 she is ordinarily required to apportion business
1984	1984	10 income under different subsections of Section 304, but
1985	1985	11 not to exceed the addition modification required to be
1986	1986	12 made for the same taxable year under Section
1987	1987	13 203(b)(2)(E-13) for intangible expenses and costs
1988	1988	14 paid, accrued, or incurred, directly or indirectly, to
1989	1989	15 the same foreign person. This subparagraph (X) is
1990	1990	16 exempt from the provisions of Section 250;
1991	1991	17 (Y) For taxable years ending on or after December
1992	1992	18 31, 2011, in the case of a taxpayer who was required to
1993	1993	19 add back any insurance premiums under Section
1994	1994	20 203(b)(2)(E-14), such taxpayer may elect to subtract
1995	1995	21 that part of a reimbursement received from the
1996	1996	22 insurance company equal to the amount of the expense
1997	1997	23 or loss (including expenses incurred by the insurance
1998	1998	24 company) that would have been taken into account as a
1999	1999	25 deduction for federal income tax purposes if the
2000	2000	26 expense or loss had been uninsured. If a taxpayer
2001	2001
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006	HB0998 - 55 - LRB103 03557 HLH 48563 b
2007	2007
2008	2008
2009	2009	HB0998- 56 -LRB103 03557 HLH 48563 b HB0998 - 56 - LRB103 03557 HLH 48563 b
2010	2010	HB0998 - 56 - LRB103 03557 HLH 48563 b
2011	2011	1 makes the election provided for by this subparagraph
2012	2012	2 (Y), the insurer to which the premiums were paid must
2013	2013	3 add back to income the amount subtracted by the
2014	2014	4 taxpayer pursuant to this subparagraph (Y). This
2015	2015	5 subparagraph (Y) is exempt from the provisions of
2016	2016	6 Section 250; and
2017	2017	7 (Z) The difference between the nondeductible
2018	2018	8 controlled foreign corporation dividends under Section
2019	2019	9 965(e)(3) of the Internal Revenue Code over the
2020	2020	10 taxable income of the taxpayer, computed without
2021	2021	11 regard to Section 965(e)(2)(A) of the Internal Revenue
2022	2022	12 Code, and without regard to any net operating loss
2023	2023	13 deduction. This subparagraph (Z) is exempt from the
2024	2024	14 provisions of Section 250; and .
2025	2025	15 (AA) For taxable years beginning on or after
2026	2026	16 January 1, 2024, the amount of any federal deduction
2027	2027	17 disallowed pursuant to Section 280E of the Internal
2028	2028	18 Revenue Code related to the production and
2029	2029	19 distribution of adult-use cannabis products by an
2030	2030	20 entity licensed under the Cannabis Regulation and Tax
2031	2031	21 Act, if those amounts are not used as the basis for any
2032	2032	22 other tax deduction, exemption, or credit and not
2033	2033	23 otherwise required to be added back when computing the
2034	2034	24 taxpayer's base income under this Section. This
2035	2035	25 subparagraph (AA) is exempt from the provisions of
2036	2036	26 Section 250.
2037	2037
2038	2038
2039	2039
2040	2040
2041	2041
2042	2042	HB0998 - 56 - LRB103 03557 HLH 48563 b
2043	2043
2044	2044
2045	2045	HB0998- 57 -LRB103 03557 HLH 48563 b HB0998 - 57 - LRB103 03557 HLH 48563 b
2046	2046	HB0998 - 57 - LRB103 03557 HLH 48563 b
2047	2047	1 (3) Special rule. For purposes of paragraph (2)(A),
2048	2048	2 "gross income" in the case of a life insurance company,
2049	2049	3 for tax years ending on and after December 31, 1994, and
2050	2050	4 prior to December 31, 2011, shall mean the gross
2051	2051	5 investment income for the taxable year and, for tax years
2052	2052	6 ending on or after December 31, 2011, shall mean all
2053	2053	7 amounts included in life insurance gross income under
2054	2054	8 Section 803(a)(3) of the Internal Revenue Code.
2055	2055	9 (c) Trusts and estates.
2056	2056	10 (1) In general. In the case of a trust or estate, base
2057	2057	11 income means an amount equal to the taxpayer's taxable
2058	2058	12 income for the taxable year as modified by paragraph (2).
2059	2059	13 (2) Modifications. Subject to the provisions of
2060	2060	14 paragraph (3), the taxable income referred to in paragraph
2061	2061	15 (1) shall be modified by adding thereto the sum of the
2062	2062	16 following amounts:
2063	2063	17 (A) An amount equal to all amounts paid or accrued
2064	2064	18 to the taxpayer as interest or dividends during the
2065	2065	19 taxable year to the extent excluded from gross income
2066	2066	20 in the computation of taxable income;
2067	2067	21 (B) In the case of (i) an estate, $600; (ii) a
2068	2068	22 trust which, under its governing instrument, is
2069	2069	23 required to distribute all of its income currently,
2070	2070	24 $300; and (iii) any other trust, $100, but in each such
2071	2071	25 case, only to the extent such amount was deducted in
2072	2072
2073	2073
2074	2074
2075	2075
2076	2076
2077	2077	HB0998 - 57 - LRB103 03557 HLH 48563 b
2078	2078
2079	2079
2080	2080	HB0998- 58 -LRB103 03557 HLH 48563 b HB0998 - 58 - LRB103 03557 HLH 48563 b
2081	2081	HB0998 - 58 - LRB103 03557 HLH 48563 b
2082	2082	1 the computation of taxable income;
2083	2083	2 (C) An amount equal to the amount of tax imposed by
2084	2084	3 this Act to the extent deducted from gross income in
2085	2085	4 the computation of taxable income for the taxable
2086	2086	5 year;
2087	2087	6 (D) The amount of any net operating loss deduction
2088	2088	7 taken in arriving at taxable income, other than a net
2089	2089	8 operating loss carried forward from a taxable year
2090	2090	9 ending prior to December 31, 1986;
2091	2091	10 (E) For taxable years in which a net operating
2092	2092	11 loss carryback or carryforward from a taxable year
2093	2093	12 ending prior to December 31, 1986 is an element of
2094	2094	13 taxable income under paragraph (1) of subsection (e)
2095	2095	14 or subparagraph (E) of paragraph (2) of subsection
2096	2096	15 (e), the amount by which addition modifications other
2097	2097	16 than those provided by this subparagraph (E) exceeded
2098	2098	17 subtraction modifications in such taxable year, with
2099	2099	18 the following limitations applied in the order that
2100	2100	19 they are listed:
2101	2101	20 (i) the addition modification relating to the
2102	2102	21 net operating loss carried back or forward to the
2103	2103	22 taxable year from any taxable year ending prior to
2104	2104	23 December 31, 1986 shall be reduced by the amount
2105	2105	24 of addition modification under this subparagraph
2106	2106	25 (E) which related to that net operating loss and
2107	2107	26 which was taken into account in calculating the
2108	2108
2109	2109
2110	2110
2111	2111
2112	2112
2113	2113	HB0998 - 58 - LRB103 03557 HLH 48563 b
2114	2114
2115	2115
2116	2116	HB0998- 59 -LRB103 03557 HLH 48563 b HB0998 - 59 - LRB103 03557 HLH 48563 b
2117	2117	HB0998 - 59 - LRB103 03557 HLH 48563 b
2118	2118	1 base income of an earlier taxable year, and
2119	2119	2 (ii) the addition modification relating to the
2120	2120	3 net operating loss carried back or forward to the
2121	2121	4 taxable year from any taxable year ending prior to
2122	2122	5 December 31, 1986 shall not exceed the amount of
2123	2123	6 such carryback or carryforward;
2124	2124	7 For taxable years in which there is a net
2125	2125	8 operating loss carryback or carryforward from more
2126	2126	9 than one other taxable year ending prior to December
2127	2127	10 31, 1986, the addition modification provided in this
2128	2128	11 subparagraph (E) shall be the sum of the amounts
2129	2129	12 computed independently under the preceding provisions
2130	2130	13 of this subparagraph (E) for each such taxable year;
2131	2131	14 (F) For taxable years ending on or after January
2132	2132	15 1, 1989, an amount equal to the tax deducted pursuant
2133	2133	16 to Section 164 of the Internal Revenue Code if the
2134	2134	17 trust or estate is claiming the same tax for purposes
2135	2135	18 of the Illinois foreign tax credit under Section 601
2136	2136	19 of this Act;
2137	2137	20 (G) An amount equal to the amount of the capital
2138	2138	21 gain deduction allowable under the Internal Revenue
2139	2139	22 Code, to the extent deducted from gross income in the
2140	2140	23 computation of taxable income;
2141	2141	24 (G-5) For taxable years ending after December 31,
2142	2142	25 1997, an amount equal to any eligible remediation
2143	2143	26 costs that the trust or estate deducted in computing
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148
2149	2149	HB0998 - 59 - LRB103 03557 HLH 48563 b
2150	2150
2151	2151
2152	2152	HB0998- 60 -LRB103 03557 HLH 48563 b HB0998 - 60 - LRB103 03557 HLH 48563 b
2153	2153	HB0998 - 60 - LRB103 03557 HLH 48563 b
2154	2154	1 adjusted gross income and for which the trust or
2155	2155	2 estate claims a credit under subsection (l) of Section
2156	2156	3 201;
2157	2157	4 (G-10) For taxable years 2001 and thereafter, an
2158	2158	5 amount equal to the bonus depreciation deduction taken
2159	2159	6 on the taxpayer's federal income tax return for the
2160	2160	7 taxable year under subsection (k) of Section 168 of
2161	2161	8 the Internal Revenue Code; and
2162	2162	9 (G-11) If the taxpayer sells, transfers, abandons,
2163	2163	10 or otherwise disposes of property for which the
2164	2164	11 taxpayer was required in any taxable year to make an
2165	2165	12 addition modification under subparagraph (G-10), then
2166	2166	13 an amount equal to the aggregate amount of the
2167	2167	14 deductions taken in all taxable years under
2168	2168	15 subparagraph (R) with respect to that property.
2169	2169	16 If the taxpayer continues to own property through
2170	2170	17 the last day of the last tax year for which a
2171	2171	18 subtraction is allowed with respect to that property
2172	2172	19 under subparagraph (R) and for which the taxpayer was
2173	2173	20 allowed in any taxable year to make a subtraction
2174	2174	21 modification under subparagraph (R), then an amount
2175	2175	22 equal to that subtraction modification.
2176	2176	23 The taxpayer is required to make the addition
2177	2177	24 modification under this subparagraph only once with
2178	2178	25 respect to any one piece of property;
2179	2179	26 (G-12) An amount equal to the amount otherwise
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184
2185	2185	HB0998 - 60 - LRB103 03557 HLH 48563 b
2186	2186
2187	2187
2188	2188	HB0998- 61 -LRB103 03557 HLH 48563 b HB0998 - 61 - LRB103 03557 HLH 48563 b
2189	2189	HB0998 - 61 - LRB103 03557 HLH 48563 b
2190	2190	1 allowed as a deduction in computing base income for
2191	2191	2 interest paid, accrued, or incurred, directly or
2192	2192	3 indirectly, (i) for taxable years ending on or after
2193	2193	4 December 31, 2004, to a foreign person who would be a
2194	2194	5 member of the same unitary business group but for the
2195	2195	6 fact that the foreign person's business activity
2196	2196	7 outside the United States is 80% or more of the foreign
2197	2197	8 person's total business activity and (ii) for taxable
2198	2198	9 years ending on or after December 31, 2008, to a person
2199	2199	10 who would be a member of the same unitary business
2200	2200	11 group but for the fact that the person is prohibited
2201	2201	12 under Section 1501(a)(27) from being included in the
2202	2202	13 unitary business group because he or she is ordinarily
2203	2203	14 required to apportion business income under different
2204	2204	15 subsections of Section 304. The addition modification
2205	2205	16 required by this subparagraph shall be reduced to the
2206	2206	17 extent that dividends were included in base income of
2207	2207	18 the unitary group for the same taxable year and
2208	2208	19 received by the taxpayer or by a member of the
2209	2209	20 taxpayer's unitary business group (including amounts
2210	2210	21 included in gross income pursuant to Sections 951
2211	2211	22 through 964 of the Internal Revenue Code and amounts
2212	2212	23 included in gross income under Section 78 of the
2213	2213	24 Internal Revenue Code) with respect to the stock of
2214	2214	25 the same person to whom the interest was paid,
2215	2215	26 accrued, or incurred.
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220
2221	2221	HB0998 - 61 - LRB103 03557 HLH 48563 b
2222	2222
2223	2223
2224	2224	HB0998- 62 -LRB103 03557 HLH 48563 b HB0998 - 62 - LRB103 03557 HLH 48563 b
2225	2225	HB0998 - 62 - LRB103 03557 HLH 48563 b
2226	2226	1 This paragraph shall not apply to the following:
2227	2227	2 (i) an item of interest paid, accrued, or
2228	2228	3 incurred, directly or indirectly, to a person who
2229	2229	4 is subject in a foreign country or state, other
2230	2230	5 than a state which requires mandatory unitary
2231	2231	6 reporting, to a tax on or measured by net income
2232	2232	7 with respect to such interest; or
2233	2233	8 (ii) an item of interest paid, accrued, or
2234	2234	9 incurred, directly or indirectly, to a person if
2235	2235	10 the taxpayer can establish, based on a
2236	2236	11 preponderance of the evidence, both of the
2237	2237	12 following:
2238	2238	13 (a) the person, during the same taxable
2239	2239	14 year, paid, accrued, or incurred, the interest
2240	2240	15 to a person that is not a related member, and
2241	2241	16 (b) the transaction giving rise to the
2242	2242	17 interest expense between the taxpayer and the
2243	2243	18 person did not have as a principal purpose the
2244	2244	19 avoidance of Illinois income tax, and is paid
2245	2245	20 pursuant to a contract or agreement that
2246	2246	21 reflects an arm's-length interest rate and
2247	2247	22 terms; or
2248	2248	23 (iii) the taxpayer can establish, based on
2249	2249	24 clear and convincing evidence, that the interest
2250	2250	25 paid, accrued, or incurred relates to a contract
2251	2251	26 or agreement entered into at arm's-length rates
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256
2257	2257	HB0998 - 62 - LRB103 03557 HLH 48563 b
2258	2258
2259	2259
2260	2260	HB0998- 63 -LRB103 03557 HLH 48563 b HB0998 - 63 - LRB103 03557 HLH 48563 b
2261	2261	HB0998 - 63 - LRB103 03557 HLH 48563 b
2262	2262	1 and terms and the principal purpose for the
2263	2263	2 payment is not federal or Illinois tax avoidance;
2264	2264	3 or
2265	2265	4 (iv) an item of interest paid, accrued, or
2266	2266	5 incurred, directly or indirectly, to a person if
2267	2267	6 the taxpayer establishes by clear and convincing
2268	2268	7 evidence that the adjustments are unreasonable; or
2269	2269	8 if the taxpayer and the Director agree in writing
2270	2270	9 to the application or use of an alternative method
2271	2271	10 of apportionment under Section 304(f).
2272	2272	11 Nothing in this subsection shall preclude the
2273	2273	12 Director from making any other adjustment
2274	2274	13 otherwise allowed under Section 404 of this Act
2275	2275	14 for any tax year beginning after the effective
2276	2276	15 date of this amendment provided such adjustment is
2277	2277	16 made pursuant to regulation adopted by the
2278	2278	17 Department and such regulations provide methods
2279	2279	18 and standards by which the Department will utilize
2280	2280	19 its authority under Section 404 of this Act;
2281	2281	20 (G-13) An amount equal to the amount of intangible
2282	2282	21 expenses and costs otherwise allowed as a deduction in
2283	2283	22 computing base income, and that were paid, accrued, or
2284	2284	23 incurred, directly or indirectly, (i) for taxable
2285	2285	24 years ending on or after December 31, 2004, to a
2286	2286	25 foreign person who would be a member of the same
2287	2287	26 unitary business group but for the fact that the
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292
2293	2293	HB0998 - 63 - LRB103 03557 HLH 48563 b
2294	2294
2295	2295
2296	2296	HB0998- 64 -LRB103 03557 HLH 48563 b HB0998 - 64 - LRB103 03557 HLH 48563 b
2297	2297	HB0998 - 64 - LRB103 03557 HLH 48563 b
2298	2298	1 foreign person's business activity outside the United
2299	2299	2 States is 80% or more of that person's total business
2300	2300	3 activity and (ii) for taxable years ending on or after
2301	2301	4 December 31, 2008, to a person who would be a member of
2302	2302	5 the same unitary business group but for the fact that
2303	2303	6 the person is prohibited under Section 1501(a)(27)
2304	2304	7 from being included in the unitary business group
2305	2305	8 because he or she is ordinarily required to apportion
2306	2306	9 business income under different subsections of Section
2307	2307	10 304. The addition modification required by this
2308	2308	11 subparagraph shall be reduced to the extent that
2309	2309	12 dividends were included in base income of the unitary
2310	2310	13 group for the same taxable year and received by the
2311	2311	14 taxpayer or by a member of the taxpayer's unitary
2312	2312	15 business group (including amounts included in gross
2313	2313	16 income pursuant to Sections 951 through 964 of the
2314	2314	17 Internal Revenue Code and amounts included in gross
2315	2315	18 income under Section 78 of the Internal Revenue Code)
2316	2316	19 with respect to the stock of the same person to whom
2317	2317	20 the intangible expenses and costs were directly or
2318	2318	21 indirectly paid, incurred, or accrued. The preceding
2319	2319	22 sentence shall not apply to the extent that the same
2320	2320	23 dividends caused a reduction to the addition
2321	2321	24 modification required under Section 203(c)(2)(G-12) of
2322	2322	25 this Act. As used in this subparagraph, the term
2323	2323	26 "intangible expenses and costs" includes: (1)
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328
2329	2329	HB0998 - 64 - LRB103 03557 HLH 48563 b
2330	2330
2331	2331
2332	2332	HB0998- 65 -LRB103 03557 HLH 48563 b HB0998 - 65 - LRB103 03557 HLH 48563 b
2333	2333	HB0998 - 65 - LRB103 03557 HLH 48563 b
2334	2334	1 expenses, losses, and costs for or related to the
2335	2335	2 direct or indirect acquisition, use, maintenance or
2336	2336	3 management, ownership, sale, exchange, or any other
2337	2337	4 disposition of intangible property; (2) losses
2338	2338	5 incurred, directly or indirectly, from factoring
2339	2339	6 transactions or discounting transactions; (3) royalty,
2340	2340	7 patent, technical, and copyright fees; (4) licensing
2341	2341	8 fees; and (5) other similar expenses and costs. For
2342	2342	9 purposes of this subparagraph, "intangible property"
2343	2343	10 includes patents, patent applications, trade names,
2344	2344	11 trademarks, service marks, copyrights, mask works,
2345	2345	12 trade secrets, and similar types of intangible assets.
2346	2346	13 This paragraph shall not apply to the following:
2347	2347	14 (i) any item of intangible expenses or costs
2348	2348	15 paid, accrued, or incurred, directly or
2349	2349	16 indirectly, from a transaction with a person who
2350	2350	17 is subject in a foreign country or state, other
2351	2351	18 than a state which requires mandatory unitary
2352	2352	19 reporting, to a tax on or measured by net income
2353	2353	20 with respect to such item; or
2354	2354	21 (ii) any item of intangible expense or cost
2355	2355	22 paid, accrued, or incurred, directly or
2356	2356	23 indirectly, if the taxpayer can establish, based
2357	2357	24 on a preponderance of the evidence, both of the
2358	2358	25 following:
2359	2359	26 (a) the person during the same taxable
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364
2365	2365	HB0998 - 65 - LRB103 03557 HLH 48563 b
2366	2366
2367	2367
2368	2368	HB0998- 66 -LRB103 03557 HLH 48563 b HB0998 - 66 - LRB103 03557 HLH 48563 b
2369	2369	HB0998 - 66 - LRB103 03557 HLH 48563 b
2370	2370	1 year paid, accrued, or incurred, the
2371	2371	2 intangible expense or cost to a person that is
2372	2372	3 not a related member, and
2373	2373	4 (b) the transaction giving rise to the
2374	2374	5 intangible expense or cost between the
2375	2375	6 taxpayer and the person did not have as a
2376	2376	7 principal purpose the avoidance of Illinois
2377	2377	8 income tax, and is paid pursuant to a contract
2378	2378	9 or agreement that reflects arm's-length terms;
2379	2379	10 or
2380	2380	11 (iii) any item of intangible expense or cost
2381	2381	12 paid, accrued, or incurred, directly or
2382	2382	13 indirectly, from a transaction with a person if
2383	2383	14 the taxpayer establishes by clear and convincing
2384	2384	15 evidence, that the adjustments are unreasonable;
2385	2385	16 or if the taxpayer and the Director agree in
2386	2386	17 writing to the application or use of an
2387	2387	18 alternative method of apportionment under Section
2388	2388	19 304(f);
2389	2389	20 Nothing in this subsection shall preclude the
2390	2390	21 Director from making any other adjustment
2391	2391	22 otherwise allowed under Section 404 of this Act
2392	2392	23 for any tax year beginning after the effective
2393	2393	24 date of this amendment provided such adjustment is
2394	2394	25 made pursuant to regulation adopted by the
2395	2395	26 Department and such regulations provide methods
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400
2401	2401	HB0998 - 66 - LRB103 03557 HLH 48563 b
2402	2402
2403	2403
2404	2404	HB0998- 67 -LRB103 03557 HLH 48563 b HB0998 - 67 - LRB103 03557 HLH 48563 b
2405	2405	HB0998 - 67 - LRB103 03557 HLH 48563 b
2406	2406	1 and standards by which the Department will utilize
2407	2407	2 its authority under Section 404 of this Act;
2408	2408	3 (G-14) For taxable years ending on or after
2409	2409	4 December 31, 2008, an amount equal to the amount of
2410	2410	5 insurance premium expenses and costs otherwise allowed
2411	2411	6 as a deduction in computing base income, and that were
2412	2412	7 paid, accrued, or incurred, directly or indirectly, to
2413	2413	8 a person who would be a member of the same unitary
2414	2414	9 business group but for the fact that the person is
2415	2415	10 prohibited under Section 1501(a)(27) from being
2416	2416	11 included in the unitary business group because he or
2417	2417	12 she is ordinarily required to apportion business
2418	2418	13 income under different subsections of Section 304. The
2419	2419	14 addition modification required by this subparagraph
2420	2420	15 shall be reduced to the extent that dividends were
2421	2421	16 included in base income of the unitary group for the
2422	2422	17 same taxable year and received by the taxpayer or by a
2423	2423	18 member of the taxpayer's unitary business group
2424	2424	19 (including amounts included in gross income under
2425	2425	20 Sections 951 through 964 of the Internal Revenue Code
2426	2426	21 and amounts included in gross income under Section 78
2427	2427	22 of the Internal Revenue Code) with respect to the
2428	2428	23 stock of the same person to whom the premiums and costs
2429	2429	24 were directly or indirectly paid, incurred, or
2430	2430	25 accrued. The preceding sentence does not apply to the
2431	2431	26 extent that the same dividends caused a reduction to
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436
2437	2437	HB0998 - 67 - LRB103 03557 HLH 48563 b
2438	2438
2439	2439
2440	2440	HB0998- 68 -LRB103 03557 HLH 48563 b HB0998 - 68 - LRB103 03557 HLH 48563 b
2441	2441	HB0998 - 68 - LRB103 03557 HLH 48563 b
2442	2442	1 the addition modification required under Section
2443	2443	2 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2444	2444	3 Act;
2445	2445	4 (G-15) An amount equal to the credit allowable to
2446	2446	5 the taxpayer under Section 218(a) of this Act,
2447	2447	6 determined without regard to Section 218(c) of this
2448	2448	7 Act;
2449	2449	8 (G-16) For taxable years ending on or after
2450	2450	9 December 31, 2017, an amount equal to the deduction
2451	2451	10 allowed under Section 199 of the Internal Revenue Code
2452	2452	11 for the taxable year;
2453	2453	12 and by deducting from the total so obtained the sum of the
2454	2454	13 following amounts:
2455	2455	14 (H) An amount equal to all amounts included in
2456	2456	15 such total pursuant to the provisions of Sections
2457	2457	16 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2458	2458	17 of the Internal Revenue Code or included in such total
2459	2459	18 as distributions under the provisions of any
2460	2460	19 retirement or disability plan for employees of any
2461	2461	20 governmental agency or unit, or retirement payments to
2462	2462	21 retired partners, which payments are excluded in
2463	2463	22 computing net earnings from self employment by Section
2464	2464	23 1402 of the Internal Revenue Code and regulations
2465	2465	24 adopted pursuant thereto;
2466	2466	25 (I) The valuation limitation amount;
2467	2467	26 (J) An amount equal to the amount of any tax
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472
2473	2473	HB0998 - 68 - LRB103 03557 HLH 48563 b
2474	2474
2475	2475
2476	2476	HB0998- 69 -LRB103 03557 HLH 48563 b HB0998 - 69 - LRB103 03557 HLH 48563 b
2477	2477	HB0998 - 69 - LRB103 03557 HLH 48563 b
2478	2478	1 imposed by this Act which was refunded to the taxpayer
2479	2479	2 and included in such total for the taxable year;
2480	2480	3 (K) An amount equal to all amounts included in
2481	2481	4 taxable income as modified by subparagraphs (A), (B),
2482	2482	5 (C), (D), (E), (F) and (G) which are exempt from
2483	2483	6 taxation by this State either by reason of its
2484	2484	7 statutes or Constitution or by reason of the
2485	2485	8 Constitution, treaties or statutes of the United
2486	2486	9 States; provided that, in the case of any statute of
2487	2487	10 this State that exempts income derived from bonds or
2488	2488	11 other obligations from the tax imposed under this Act,
2489	2489	12 the amount exempted shall be the interest net of bond
2490	2490	13 premium amortization;
2491	2491	14 (L) With the exception of any amounts subtracted
2492	2492	15 under subparagraph (K), an amount equal to the sum of
2493	2493	16 all amounts disallowed as deductions by (i) Sections
2494	2494	17 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2495	2495	18 and all amounts of expenses allocable to interest and
2496	2496	19 disallowed as deductions by Section 265(a)(1) of the
2497	2497	20 Internal Revenue Code; and (ii) for taxable years
2498	2498	21 ending on or after August 13, 1999, Sections
2499	2499	22 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2500	2500	23 Internal Revenue Code, plus, (iii) for taxable years
2501	2501	24 ending on or after December 31, 2011, Section
2502	2502	25 45G(e)(3) of the Internal Revenue Code and, for
2503	2503	26 taxable years ending on or after December 31, 2008,
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508
2509	2509	HB0998 - 69 - LRB103 03557 HLH 48563 b
2510	2510
2511	2511
2512	2512	HB0998- 70 -LRB103 03557 HLH 48563 b HB0998 - 70 - LRB103 03557 HLH 48563 b
2513	2513	HB0998 - 70 - LRB103 03557 HLH 48563 b
2514	2514	1 any amount included in gross income under Section 87
2515	2515	2 of the Internal Revenue Code; the provisions of this
2516	2516	3 subparagraph are exempt from the provisions of Section
2517	2517	4 250;
2518	2518	5 (M) An amount equal to those dividends included in
2519	2519	6 such total which were paid by a corporation which
2520	2520	7 conducts business operations in a River Edge
2521	2521	8 Redevelopment Zone or zones created under the River
2522	2522	9 Edge Redevelopment Zone Act and conducts substantially
2523	2523	10 all of its operations in a River Edge Redevelopment
2524	2524	11 Zone or zones. This subparagraph (M) is exempt from
2525	2525	12 the provisions of Section 250;
2526	2526	13 (N) An amount equal to any contribution made to a
2527	2527	14 job training project established pursuant to the Tax
2528	2528	15 Increment Allocation Redevelopment Act;
2529	2529	16 (O) An amount equal to those dividends included in
2530	2530	17 such total that were paid by a corporation that
2531	2531	18 conducts business operations in a federally designated
2532	2532	19 Foreign Trade Zone or Sub-Zone and that is designated
2533	2533	20 a High Impact Business located in Illinois; provided
2534	2534	21 that dividends eligible for the deduction provided in
2535	2535	22 subparagraph (M) of paragraph (2) of this subsection
2536	2536	23 shall not be eligible for the deduction provided under
2537	2537	24 this subparagraph (O);
2538	2538	25 (P) An amount equal to the amount of the deduction
2539	2539	26 used to compute the federal income tax credit for
2540	2540
2541	2541
2542	2542
2543	2543
2544	2544
2545	2545	HB0998 - 70 - LRB103 03557 HLH 48563 b
2546	2546
2547	2547
2548	2548	HB0998- 71 -LRB103 03557 HLH 48563 b HB0998 - 71 - LRB103 03557 HLH 48563 b
2549	2549	HB0998 - 71 - LRB103 03557 HLH 48563 b
2550	2550	1 restoration of substantial amounts held under claim of
2551	2551	2 right for the taxable year pursuant to Section 1341 of
2552	2552	3 the Internal Revenue Code;
2553	2553	4 (Q) For taxable year 1999 and thereafter, an
2554	2554	5 amount equal to the amount of any (i) distributions,
2555	2555	6 to the extent includible in gross income for federal
2556	2556	7 income tax purposes, made to the taxpayer because of
2557	2557	8 his or her status as a victim of persecution for racial
2558	2558	9 or religious reasons by Nazi Germany or any other Axis
2559	2559	10 regime or as an heir of the victim and (ii) items of
2560	2560	11 income, to the extent includible in gross income for
2561	2561	12 federal income tax purposes, attributable to, derived
2562	2562	13 from or in any way related to assets stolen from,
2563	2563	14 hidden from, or otherwise lost to a victim of
2564	2564	15 persecution for racial or religious reasons by Nazi
2565	2565	16 Germany or any other Axis regime immediately prior to,
2566	2566	17 during, and immediately after World War II, including,
2567	2567	18 but not limited to, interest on the proceeds
2568	2568	19 receivable as insurance under policies issued to a
2569	2569	20 victim of persecution for racial or religious reasons
2570	2570	21 by Nazi Germany or any other Axis regime by European
2571	2571	22 insurance companies immediately prior to and during
2572	2572	23 World War II; provided, however, this subtraction from
2573	2573	24 federal adjusted gross income does not apply to assets
2574	2574	25 acquired with such assets or with the proceeds from
2575	2575	26 the sale of such assets; provided, further, this
2576	2576
2577	2577
2578	2578
2579	2579
2580	2580
2581	2581	HB0998 - 71 - LRB103 03557 HLH 48563 b
2582	2582
2583	2583
2584	2584	HB0998- 72 -LRB103 03557 HLH 48563 b HB0998 - 72 - LRB103 03557 HLH 48563 b
2585	2585	HB0998 - 72 - LRB103 03557 HLH 48563 b
2586	2586	1 paragraph shall only apply to a taxpayer who was the
2587	2587	2 first recipient of such assets after their recovery
2588	2588	3 and who is a victim of persecution for racial or
2589	2589	4 religious reasons by Nazi Germany or any other Axis
2590	2590	5 regime or as an heir of the victim. The amount of and
2591	2591	6 the eligibility for any public assistance, benefit, or
2592	2592	7 similar entitlement is not affected by the inclusion
2593	2593	8 of items (i) and (ii) of this paragraph in gross income
2594	2594	9 for federal income tax purposes. This paragraph is
2595	2595	10 exempt from the provisions of Section 250;
2596	2596	11 (R) For taxable years 2001 and thereafter, for the
2597	2597	12 taxable year in which the bonus depreciation deduction
2598	2598	13 is taken on the taxpayer's federal income tax return
2599	2599	14 under subsection (k) of Section 168 of the Internal
2600	2600	15 Revenue Code and for each applicable taxable year
2601	2601	16 thereafter, an amount equal to "x", where:
2602	2602	17 (1) "y" equals the amount of the depreciation
2603	2603	18 deduction taken for the taxable year on the
2604	2604	19 taxpayer's federal income tax return on property
2605	2605	20 for which the bonus depreciation deduction was
2606	2606	21 taken in any year under subsection (k) of Section
2607	2607	22 168 of the Internal Revenue Code, but not
2608	2608	23 including the bonus depreciation deduction;
2609	2609	24 (2) for taxable years ending on or before
2610	2610	25 December 31, 2005, "x" equals "y" multiplied by 30
2611	2611	26 and then divided by 70 (or "y" multiplied by
2612	2612
2613	2613
2614	2614
2615	2615
2616	2616
2617	2617	HB0998 - 72 - LRB103 03557 HLH 48563 b
2618	2618
2619	2619
2620	2620	HB0998- 73 -LRB103 03557 HLH 48563 b HB0998 - 73 - LRB103 03557 HLH 48563 b
2621	2621	HB0998 - 73 - LRB103 03557 HLH 48563 b
2622	2622	1 0.429); and
2623	2623	2 (3) for taxable years ending after December
2624	2624	3 31, 2005:
2625	2625	4 (i) for property on which a bonus
2626	2626	5 depreciation deduction of 30% of the adjusted
2627	2627	6 basis was taken, "x" equals "y" multiplied by
2628	2628	7 30 and then divided by 70 (or "y" multiplied
2629	2629	8 by 0.429);
2630	2630	9 (ii) for property on which a bonus
2631	2631	10 depreciation deduction of 50% of the adjusted
2632	2632	11 basis was taken, "x" equals "y" multiplied by
2633	2633	12 1.0;
2634	2634	13 (iii) for property on which a bonus
2635	2635	14 depreciation deduction of 100% of the adjusted
2636	2636	15 basis was taken in a taxable year ending on or
2637	2637	16 after December 31, 2021, "x" equals the
2638	2638	17 depreciation deduction that would be allowed
2639	2639	18 on that property if the taxpayer had made the
2640	2640	19 election under Section 168(k)(7) of the
2641	2641	20 Internal Revenue Code to not claim bonus
2642	2642	21 depreciation on that property; and
2643	2643	22 (iv) for property on which a bonus
2644	2644	23 depreciation deduction of a percentage other
2645	2645	24 than 30%, 50% or 100% of the adjusted basis
2646	2646	25 was taken in a taxable year ending on or after
2647	2647	26 December 31, 2021, "x" equals "y" multiplied
2648	2648
2649	2649
2650	2650
2651	2651
2652	2652
2653	2653	HB0998 - 73 - LRB103 03557 HLH 48563 b
2654	2654
2655	2655
2656	2656	HB0998- 74 -LRB103 03557 HLH 48563 b HB0998 - 74 - LRB103 03557 HLH 48563 b
2657	2657	HB0998 - 74 - LRB103 03557 HLH 48563 b
2658	2658	1 by 100 times the percentage bonus depreciation
2659	2659	2 on the property (that is, 100(bonus%)) and
2660	2660	3 then divided by 100 times 1 minus the
2661	2661	4 percentage bonus depreciation on the property
2662	2662	5 (that is, 100(1bonus%)).
2663	2663	6 The aggregate amount deducted under this
2664	2664	7 subparagraph in all taxable years for any one piece of
2665	2665	8 property may not exceed the amount of the bonus
2666	2666	9 depreciation deduction taken on that property on the
2667	2667	10 taxpayer's federal income tax return under subsection
2668	2668	11 (k) of Section 168 of the Internal Revenue Code. This
2669	2669	12 subparagraph (R) is exempt from the provisions of
2670	2670	13 Section 250;
2671	2671	14 (S) If the taxpayer sells, transfers, abandons, or
2672	2672	15 otherwise disposes of property for which the taxpayer
2673	2673	16 was required in any taxable year to make an addition
2674	2674	17 modification under subparagraph (G-10), then an amount
2675	2675	18 equal to that addition modification.
2676	2676	19 If the taxpayer continues to own property through
2677	2677	20 the last day of the last tax year for which a
2678	2678	21 subtraction is allowed with respect to that property
2679	2679	22 under subparagraph (R) and for which the taxpayer was
2680	2680	23 required in any taxable year to make an addition
2681	2681	24 modification under subparagraph (G-10), then an amount
2682	2682	25 equal to that addition modification.
2683	2683	26 The taxpayer is allowed to take the deduction
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688
2689	2689	HB0998 - 74 - LRB103 03557 HLH 48563 b
2690	2690
2691	2691
2692	2692	HB0998- 75 -LRB103 03557 HLH 48563 b HB0998 - 75 - LRB103 03557 HLH 48563 b
2693	2693	HB0998 - 75 - LRB103 03557 HLH 48563 b
2694	2694	1 under this subparagraph only once with respect to any
2695	2695	2 one piece of property.
2696	2696	3 This subparagraph (S) is exempt from the
2697	2697	4 provisions of Section 250;
2698	2698	5 (T) The amount of (i) any interest income (net of
2699	2699	6 the deductions allocable thereto) taken into account
2700	2700	7 for the taxable year with respect to a transaction
2701	2701	8 with a taxpayer that is required to make an addition
2702	2702	9 modification with respect to such transaction under
2703	2703	10 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2704	2704	11 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2705	2705	12 the amount of such addition modification and (ii) any
2706	2706	13 income from intangible property (net of the deductions
2707	2707	14 allocable thereto) taken into account for the taxable
2708	2708	15 year with respect to a transaction with a taxpayer
2709	2709	16 that is required to make an addition modification with
2710	2710	17 respect to such transaction under Section
2711	2711	18 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2712	2712	19 203(d)(2)(D-8), but not to exceed the amount of such
2713	2713	20 addition modification. This subparagraph (T) is exempt
2714	2714	21 from the provisions of Section 250;
2715	2715	22 (U) An amount equal to the interest income taken
2716	2716	23 into account for the taxable year (net of the
2717	2717	24 deductions allocable thereto) with respect to
2718	2718	25 transactions with (i) a foreign person who would be a
2719	2719	26 member of the taxpayer's unitary business group but
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724
2725	2725	HB0998 - 75 - LRB103 03557 HLH 48563 b
2726	2726
2727	2727
2728	2728	HB0998- 76 -LRB103 03557 HLH 48563 b HB0998 - 76 - LRB103 03557 HLH 48563 b
2729	2729	HB0998 - 76 - LRB103 03557 HLH 48563 b
2730	2730	1 for the fact the foreign person's business activity
2731	2731	2 outside the United States is 80% or more of that
2732	2732	3 person's total business activity and (ii) for taxable
2733	2733	4 years ending on or after December 31, 2008, to a person
2734	2734	5 who would be a member of the same unitary business
2735	2735	6 group but for the fact that the person is prohibited
2736	2736	7 under Section 1501(a)(27) from being included in the
2737	2737	8 unitary business group because he or she is ordinarily
2738	2738	9 required to apportion business income under different
2739	2739	10 subsections of Section 304, but not to exceed the
2740	2740	11 addition modification required to be made for the same
2741	2741	12 taxable year under Section 203(c)(2)(G-12) for
2742	2742	13 interest paid, accrued, or incurred, directly or
2743	2743	14 indirectly, to the same person. This subparagraph (U)
2744	2744	15 is exempt from the provisions of Section 250;
2745	2745	16 (V) An amount equal to the income from intangible
2746	2746	17 property taken into account for the taxable year (net
2747	2747	18 of the deductions allocable thereto) with respect to
2748	2748	19 transactions with (i) a foreign person who would be a
2749	2749	20 member of the taxpayer's unitary business group but
2750	2750	21 for the fact that the foreign person's business
2751	2751	22 activity outside the United States is 80% or more of
2752	2752	23 that person's total business activity and (ii) for
2753	2753	24 taxable years ending on or after December 31, 2008, to
2754	2754	25 a person who would be a member of the same unitary
2755	2755	26 business group but for the fact that the person is
2756	2756
2757	2757
2758	2758
2759	2759
2760	2760
2761	2761	HB0998 - 76 - LRB103 03557 HLH 48563 b
2762	2762
2763	2763
2764	2764	HB0998- 77 -LRB103 03557 HLH 48563 b HB0998 - 77 - LRB103 03557 HLH 48563 b
2765	2765	HB0998 - 77 - LRB103 03557 HLH 48563 b
2766	2766	1 prohibited under Section 1501(a)(27) from being
2767	2767	2 included in the unitary business group because he or
2768	2768	3 she is ordinarily required to apportion business
2769	2769	4 income under different subsections of Section 304, but
2770	2770	5 not to exceed the addition modification required to be
2771	2771	6 made for the same taxable year under Section
2772	2772	7 203(c)(2)(G-13) for intangible expenses and costs
2773	2773	8 paid, accrued, or incurred, directly or indirectly, to
2774	2774	9 the same foreign person. This subparagraph (V) is
2775	2775	10 exempt from the provisions of Section 250;
2776	2776	11 (W) in the case of an estate, an amount equal to
2777	2777	12 all amounts included in such total pursuant to the
2778	2778	13 provisions of Section 111 of the Internal Revenue Code
2779	2779	14 as a recovery of items previously deducted by the
2780	2780	15 decedent from adjusted gross income in the computation
2781	2781	16 of taxable income. This subparagraph (W) is exempt
2782	2782	17 from Section 250;
2783	2783	18 (X) an amount equal to the refund included in such
2784	2784	19 total of any tax deducted for federal income tax
2785	2785	20 purposes, to the extent that deduction was added back
2786	2786	21 under subparagraph (F). This subparagraph (X) is
2787	2787	22 exempt from the provisions of Section 250;
2788	2788	23 (Y) For taxable years ending on or after December
2789	2789	24 31, 2011, in the case of a taxpayer who was required to
2790	2790	25 add back any insurance premiums under Section
2791	2791	26 203(c)(2)(G-14), such taxpayer may elect to subtract
2792	2792
2793	2793
2794	2794
2795	2795
2796	2796
2797	2797	HB0998 - 77 - LRB103 03557 HLH 48563 b
2798	2798
2799	2799
2800	2800	HB0998- 78 -LRB103 03557 HLH 48563 b HB0998 - 78 - LRB103 03557 HLH 48563 b
2801	2801	HB0998 - 78 - LRB103 03557 HLH 48563 b
2802	2802	1 that part of a reimbursement received from the
2803	2803	2 insurance company equal to the amount of the expense
2804	2804	3 or loss (including expenses incurred by the insurance
2805	2805	4 company) that would have been taken into account as a
2806	2806	5 deduction for federal income tax purposes if the
2807	2807	6 expense or loss had been uninsured. If a taxpayer
2808	2808	7 makes the election provided for by this subparagraph
2809	2809	8 (Y), the insurer to which the premiums were paid must
2810	2810	9 add back to income the amount subtracted by the
2811	2811	10 taxpayer pursuant to this subparagraph (Y). This
2812	2812	11 subparagraph (Y) is exempt from the provisions of
2813	2813	12 Section 250; and
2814	2814	13 (Z) For taxable years beginning after December 31,
2815	2815	14 2018 and before January 1, 2026, the amount of excess
2816	2816	15 business loss of the taxpayer disallowed as a
2817	2817	16 deduction by Section 461(l)(1)(B) of the Internal
2818	2818	17 Revenue Code; and .
2819	2819	18 (AA) For taxable years beginning on or after January
2820	2820	19 1, 2024, the amount of any federal deduction disallowed
2821	2821	20 pursuant to Section 280E of the Internal Revenue Code
2822	2822	21 related to the production and distribution of adult-use
2823	2823	22 cannabis products by an entity licensed under the Cannabis
2824	2824	23 Regulation and Tax Act, if those amounts are not used as
2825	2825	24 the basis for any other tax deduction, exemption, or
2826	2826	25 credit and not otherwise required to be added back when
2827	2827	26 computing the taxpayer's base income under this Section.
2828	2828
2829	2829
2830	2830
2831	2831
2832	2832
2833	2833	HB0998 - 78 - LRB103 03557 HLH 48563 b
2834	2834
2835	2835
2836	2836	HB0998- 79 -LRB103 03557 HLH 48563 b HB0998 - 79 - LRB103 03557 HLH 48563 b
2837	2837	HB0998 - 79 - LRB103 03557 HLH 48563 b
2838	2838	1 This subparagraph (AA) is exempt from the provisions of
2839	2839	2 Section 250.
2840	2840	3 (3) Limitation. The amount of any modification
2841	2841	4 otherwise required under this subsection shall, under
2842	2842	5 regulations prescribed by the Department, be adjusted by
2843	2843	6 any amounts included therein which were properly paid,
2844	2844	7 credited, or required to be distributed, or permanently
2845	2845	8 set aside for charitable purposes pursuant to Internal
2846	2846	9 Revenue Code Section 642(c) during the taxable year.
2847	2847	10 (d) Partnerships.
2848	2848	11 (1) In general. In the case of a partnership, base
2849	2849	12 income means an amount equal to the taxpayer's taxable
2850	2850	13 income for the taxable year as modified by paragraph (2).
2851	2851	14 (2) Modifications. The taxable income referred to in
2852	2852	15 paragraph (1) shall be modified by adding thereto the sum
2853	2853	16 of the following amounts:
2854	2854	17 (A) An amount equal to all amounts paid or accrued
2855	2855	18 to the taxpayer as interest or dividends during the
2856	2856	19 taxable year to the extent excluded from gross income
2857	2857	20 in the computation of taxable income;
2858	2858	21 (B) An amount equal to the amount of tax imposed by
2859	2859	22 this Act to the extent deducted from gross income for
2860	2860	23 the taxable year;
2861	2861	24 (C) The amount of deductions allowed to the
2862	2862	25 partnership pursuant to Section 707 (c) of the
2863	2863
2864	2864
2865	2865
2866	2866
2867	2867
2868	2868	HB0998 - 79 - LRB103 03557 HLH 48563 b
2869	2869
2870	2870
2871	2871	HB0998- 80 -LRB103 03557 HLH 48563 b HB0998 - 80 - LRB103 03557 HLH 48563 b
2872	2872	HB0998 - 80 - LRB103 03557 HLH 48563 b
2873	2873	1 Internal Revenue Code in calculating its taxable
2874	2874	2 income;
2875	2875	3 (D) An amount equal to the amount of the capital
2876	2876	4 gain deduction allowable under the Internal Revenue
2877	2877	5 Code, to the extent deducted from gross income in the
2878	2878	6 computation of taxable income;
2879	2879	7 (D-5) For taxable years 2001 and thereafter, an
2880	2880	8 amount equal to the bonus depreciation deduction taken
2881	2881	9 on the taxpayer's federal income tax return for the
2882	2882	10 taxable year under subsection (k) of Section 168 of
2883	2883	11 the Internal Revenue Code;
2884	2884	12 (D-6) If the taxpayer sells, transfers, abandons,
2885	2885	13 or otherwise disposes of property for which the
2886	2886	14 taxpayer was required in any taxable year to make an
2887	2887	15 addition modification under subparagraph (D-5), then
2888	2888	16 an amount equal to the aggregate amount of the
2889	2889	17 deductions taken in all taxable years under
2890	2890	18 subparagraph (O) with respect to that property.
2891	2891	19 If the taxpayer continues to own property through
2892	2892	20 the last day of the last tax year for which a
2893	2893	21 subtraction is allowed with respect to that property
2894	2894	22 under subparagraph (O) and for which the taxpayer was
2895	2895	23 allowed in any taxable year to make a subtraction
2896	2896	24 modification under subparagraph (O), then an amount
2897	2897	25 equal to that subtraction modification.
2898	2898	26 The taxpayer is required to make the addition
2899	2899
2900	2900
2901	2901
2902	2902
2903	2903
2904	2904	HB0998 - 80 - LRB103 03557 HLH 48563 b
2905	2905
2906	2906
2907	2907	HB0998- 81 -LRB103 03557 HLH 48563 b HB0998 - 81 - LRB103 03557 HLH 48563 b
2908	2908	HB0998 - 81 - LRB103 03557 HLH 48563 b
2909	2909	1 modification under this subparagraph only once with
2910	2910	2 respect to any one piece of property;
2911	2911	3 (D-7) An amount equal to the amount otherwise
2912	2912	4 allowed as a deduction in computing base income for
2913	2913	5 interest paid, accrued, or incurred, directly or
2914	2914	6 indirectly, (i) for taxable years ending on or after
2915	2915	7 December 31, 2004, to a foreign person who would be a
2916	2916	8 member of the same unitary business group but for the
2917	2917	9 fact the foreign person's business activity outside
2918	2918	10 the United States is 80% or more of the foreign
2919	2919	11 person's total business activity and (ii) for taxable
2920	2920	12 years ending on or after December 31, 2008, to a person
2921	2921	13 who would be a member of the same unitary business
2922	2922	14 group but for the fact that the person is prohibited
2923	2923	15 under Section 1501(a)(27) from being included in the
2924	2924	16 unitary business group because he or she is ordinarily
2925	2925	17 required to apportion business income under different
2926	2926	18 subsections of Section 304. The addition modification
2927	2927	19 required by this subparagraph shall be reduced to the
2928	2928	20 extent that dividends were included in base income of
2929	2929	21 the unitary group for the same taxable year and
2930	2930	22 received by the taxpayer or by a member of the
2931	2931	23 taxpayer's unitary business group (including amounts
2932	2932	24 included in gross income pursuant to Sections 951
2933	2933	25 through 964 of the Internal Revenue Code and amounts
2934	2934	26 included in gross income under Section 78 of the
2935	2935
2936	2936
2937	2937
2938	2938
2939	2939
2940	2940	HB0998 - 81 - LRB103 03557 HLH 48563 b
2941	2941
2942	2942
2943	2943	HB0998- 82 -LRB103 03557 HLH 48563 b HB0998 - 82 - LRB103 03557 HLH 48563 b
2944	2944	HB0998 - 82 - LRB103 03557 HLH 48563 b
2945	2945	1 Internal Revenue Code) with respect to the stock of
2946	2946	2 the same person to whom the interest was paid,
2947	2947	3 accrued, or incurred.
2948	2948	4 This paragraph shall not apply to the following:
2949	2949	5 (i) an item of interest paid, accrued, or
2950	2950	6 incurred, directly or indirectly, to a person who
2951	2951	7 is subject in a foreign country or state, other
2952	2952	8 than a state which requires mandatory unitary
2953	2953	9 reporting, to a tax on or measured by net income
2954	2954	10 with respect to such interest; or
2955	2955	11 (ii) an item of interest paid, accrued, or
2956	2956	12 incurred, directly or indirectly, to a person if
2957	2957	13 the taxpayer can establish, based on a
2958	2958	14 preponderance of the evidence, both of the
2959	2959	15 following:
2960	2960	16 (a) the person, during the same taxable
2961	2961	17 year, paid, accrued, or incurred, the interest
2962	2962	18 to a person that is not a related member, and
2963	2963	19 (b) the transaction giving rise to the
2964	2964	20 interest expense between the taxpayer and the
2965	2965	21 person did not have as a principal purpose the
2966	2966	22 avoidance of Illinois income tax, and is paid
2967	2967	23 pursuant to a contract or agreement that
2968	2968	24 reflects an arm's-length interest rate and
2969	2969	25 terms; or
2970	2970	26 (iii) the taxpayer can establish, based on
2971	2971
2972	2972
2973	2973
2974	2974
2975	2975
2976	2976	HB0998 - 82 - LRB103 03557 HLH 48563 b
2977	2977
2978	2978
2979	2979	HB0998- 83 -LRB103 03557 HLH 48563 b HB0998 - 83 - LRB103 03557 HLH 48563 b
2980	2980	HB0998 - 83 - LRB103 03557 HLH 48563 b
2981	2981	1 clear and convincing evidence, that the interest
2982	2982	2 paid, accrued, or incurred relates to a contract
2983	2983	3 or agreement entered into at arm's-length rates
2984	2984	4 and terms and the principal purpose for the
2985	2985	5 payment is not federal or Illinois tax avoidance;
2986	2986	6 or
2987	2987	7 (iv) an item of interest paid, accrued, or
2988	2988	8 incurred, directly or indirectly, to a person if
2989	2989	9 the taxpayer establishes by clear and convincing
2990	2990	10 evidence that the adjustments are unreasonable; or
2991	2991	11 if the taxpayer and the Director agree in writing
2992	2992	12 to the application or use of an alternative method
2993	2993	13 of apportionment under Section 304(f).
2994	2994	14 Nothing in this subsection shall preclude the
2995	2995	15 Director from making any other adjustment
2996	2996	16 otherwise allowed under Section 404 of this Act
2997	2997	17 for any tax year beginning after the effective
2998	2998	18 date of this amendment provided such adjustment is
2999	2999	19 made pursuant to regulation adopted by the
3000	3000	20 Department and such regulations provide methods
3001	3001	21 and standards by which the Department will utilize
3002	3002	22 its authority under Section 404 of this Act; and
3003	3003	23 (D-8) An amount equal to the amount of intangible
3004	3004	24 expenses and costs otherwise allowed as a deduction in
3005	3005	25 computing base income, and that were paid, accrued, or
3006	3006	26 incurred, directly or indirectly, (i) for taxable
3007	3007
3008	3008
3009	3009
3010	3010
3011	3011
3012	3012	HB0998 - 83 - LRB103 03557 HLH 48563 b
3013	3013
3014	3014
3015	3015	HB0998- 84 -LRB103 03557 HLH 48563 b HB0998 - 84 - LRB103 03557 HLH 48563 b
3016	3016	HB0998 - 84 - LRB103 03557 HLH 48563 b
3017	3017	1 years ending on or after December 31, 2004, to a
3018	3018	2 foreign person who would be a member of the same
3019	3019	3 unitary business group but for the fact that the
3020	3020	4 foreign person's business activity outside the United
3021	3021	5 States is 80% or more of that person's total business
3022	3022	6 activity and (ii) for taxable years ending on or after
3023	3023	7 December 31, 2008, to a person who would be a member of
3024	3024	8 the same unitary business group but for the fact that
3025	3025	9 the person is prohibited under Section 1501(a)(27)
3026	3026	10 from being included in the unitary business group
3027	3027	11 because he or she is ordinarily required to apportion
3028	3028	12 business income under different subsections of Section
3029	3029	13 304. The addition modification required by this
3030	3030	14 subparagraph shall be reduced to the extent that
3031	3031	15 dividends were included in base income of the unitary
3032	3032	16 group for the same taxable year and received by the
3033	3033	17 taxpayer or by a member of the taxpayer's unitary
3034	3034	18 business group (including amounts included in gross
3035	3035	19 income pursuant to Sections 951 through 964 of the
3036	3036	20 Internal Revenue Code and amounts included in gross
3037	3037	21 income under Section 78 of the Internal Revenue Code)
3038	3038	22 with respect to the stock of the same person to whom
3039	3039	23 the intangible expenses and costs were directly or
3040	3040	24 indirectly paid, incurred or accrued. The preceding
3041	3041	25 sentence shall not apply to the extent that the same
3042	3042	26 dividends caused a reduction to the addition
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047
3048	3048	HB0998 - 84 - LRB103 03557 HLH 48563 b
3049	3049
3050	3050
3051	3051	HB0998- 85 -LRB103 03557 HLH 48563 b HB0998 - 85 - LRB103 03557 HLH 48563 b
3052	3052	HB0998 - 85 - LRB103 03557 HLH 48563 b
3053	3053	1 modification required under Section 203(d)(2)(D-7) of
3054	3054	2 this Act. As used in this subparagraph, the term
3055	3055	3 "intangible expenses and costs" includes (1) expenses,
3056	3056	4 losses, and costs for, or related to, the direct or
3057	3057	5 indirect acquisition, use, maintenance or management,
3058	3058	6 ownership, sale, exchange, or any other disposition of
3059	3059	7 intangible property; (2) losses incurred, directly or
3060	3060	8 indirectly, from factoring transactions or discounting
3061	3061	9 transactions; (3) royalty, patent, technical, and
3062	3062	10 copyright fees; (4) licensing fees; and (5) other
3063	3063	11 similar expenses and costs. For purposes of this
3064	3064	12 subparagraph, "intangible property" includes patents,
3065	3065	13 patent applications, trade names, trademarks, service
3066	3066	14 marks, copyrights, mask works, trade secrets, and
3067	3067	15 similar types of intangible assets;
3068	3068	16 This paragraph shall not apply to the following:
3069	3069	17 (i) any item of intangible expenses or costs
3070	3070	18 paid, accrued, or incurred, directly or
3071	3071	19 indirectly, from a transaction with a person who
3072	3072	20 is subject in a foreign country or state, other
3073	3073	21 than a state which requires mandatory unitary
3074	3074	22 reporting, to a tax on or measured by net income
3075	3075	23 with respect to such item; or
3076	3076	24 (ii) any item of intangible expense or cost
3077	3077	25 paid, accrued, or incurred, directly or
3078	3078	26 indirectly, if the taxpayer can establish, based
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083
3084	3084	HB0998 - 85 - LRB103 03557 HLH 48563 b
3085	3085
3086	3086
3087	3087	HB0998- 86 -LRB103 03557 HLH 48563 b HB0998 - 86 - LRB103 03557 HLH 48563 b
3088	3088	HB0998 - 86 - LRB103 03557 HLH 48563 b
3089	3089	1 on a preponderance of the evidence, both of the
3090	3090	2 following:
3091	3091	3 (a) the person during the same taxable
3092	3092	4 year paid, accrued, or incurred, the
3093	3093	5 intangible expense or cost to a person that is
3094	3094	6 not a related member, and
3095	3095	7 (b) the transaction giving rise to the
3096	3096	8 intangible expense or cost between the
3097	3097	9 taxpayer and the person did not have as a
3098	3098	10 principal purpose the avoidance of Illinois
3099	3099	11 income tax, and is paid pursuant to a contract
3100	3100	12 or agreement that reflects arm's-length terms;
3101	3101	13 or
3102	3102	14 (iii) any item of intangible expense or cost
3103	3103	15 paid, accrued, or incurred, directly or
3104	3104	16 indirectly, from a transaction with a person if
3105	3105	17 the taxpayer establishes by clear and convincing
3106	3106	18 evidence, that the adjustments are unreasonable;
3107	3107	19 or if the taxpayer and the Director agree in
3108	3108	20 writing to the application or use of an
3109	3109	21 alternative method of apportionment under Section
3110	3110	22 304(f);
3111	3111	23 Nothing in this subsection shall preclude the
3112	3112	24 Director from making any other adjustment
3113	3113	25 otherwise allowed under Section 404 of this Act
3114	3114	26 for any tax year beginning after the effective
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119
3120	3120	HB0998 - 86 - LRB103 03557 HLH 48563 b
3121	3121
3122	3122
3123	3123	HB0998- 87 -LRB103 03557 HLH 48563 b HB0998 - 87 - LRB103 03557 HLH 48563 b
3124	3124	HB0998 - 87 - LRB103 03557 HLH 48563 b
3125	3125	1 date of this amendment provided such adjustment is
3126	3126	2 made pursuant to regulation adopted by the
3127	3127	3 Department and such regulations provide methods
3128	3128	4 and standards by which the Department will utilize
3129	3129	5 its authority under Section 404 of this Act;
3130	3130	6 (D-9) For taxable years ending on or after
3131	3131	7 December 31, 2008, an amount equal to the amount of
3132	3132	8 insurance premium expenses and costs otherwise allowed
3133	3133	9 as a deduction in computing base income, and that were
3134	3134	10 paid, accrued, or incurred, directly or indirectly, to
3135	3135	11 a person who would be a member of the same unitary
3136	3136	12 business group but for the fact that the person is
3137	3137	13 prohibited under Section 1501(a)(27) from being
3138	3138	14 included in the unitary business group because he or
3139	3139	15 she is ordinarily required to apportion business
3140	3140	16 income under different subsections of Section 304. The
3141	3141	17 addition modification required by this subparagraph
3142	3142	18 shall be reduced to the extent that dividends were
3143	3143	19 included in base income of the unitary group for the
3144	3144	20 same taxable year and received by the taxpayer or by a
3145	3145	21 member of the taxpayer's unitary business group
3146	3146	22 (including amounts included in gross income under
3147	3147	23 Sections 951 through 964 of the Internal Revenue Code
3148	3148	24 and amounts included in gross income under Section 78
3149	3149	25 of the Internal Revenue Code) with respect to the
3150	3150	26 stock of the same person to whom the premiums and costs
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155
3156	3156	HB0998 - 87 - LRB103 03557 HLH 48563 b
3157	3157
3158	3158
3159	3159	HB0998- 88 -LRB103 03557 HLH 48563 b HB0998 - 88 - LRB103 03557 HLH 48563 b
3160	3160	HB0998 - 88 - LRB103 03557 HLH 48563 b
3161	3161	1 were directly or indirectly paid, incurred, or
3162	3162	2 accrued. The preceding sentence does not apply to the
3163	3163	3 extent that the same dividends caused a reduction to
3164	3164	4 the addition modification required under Section
3165	3165	5 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
3166	3166	6 (D-10) An amount equal to the credit allowable to
3167	3167	7 the taxpayer under Section 218(a) of this Act,
3168	3168	8 determined without regard to Section 218(c) of this
3169	3169	9 Act;
3170	3170	10 (D-11) For taxable years ending on or after
3171	3171	11 December 31, 2017, an amount equal to the deduction
3172	3172	12 allowed under Section 199 of the Internal Revenue Code
3173	3173	13 for the taxable year;
3174	3174	14 and by deducting from the total so obtained the following
3175	3175	15 amounts:
3176	3176	16 (E) The valuation limitation amount;
3177	3177	17 (F) An amount equal to the amount of any tax
3178	3178	18 imposed by this Act which was refunded to the taxpayer
3179	3179	19 and included in such total for the taxable year;
3180	3180	20 (G) An amount equal to all amounts included in
3181	3181	21 taxable income as modified by subparagraphs (A), (B),
3182	3182	22 (C) and (D) which are exempt from taxation by this
3183	3183	23 State either by reason of its statutes or Constitution
3184	3184	24 or by reason of the Constitution, treaties or statutes
3185	3185	25 of the United States; provided that, in the case of any
3186	3186	26 statute of this State that exempts income derived from
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191
3192	3192	HB0998 - 88 - LRB103 03557 HLH 48563 b
3193	3193
3194	3194
3195	3195	HB0998- 89 -LRB103 03557 HLH 48563 b HB0998 - 89 - LRB103 03557 HLH 48563 b
3196	3196	HB0998 - 89 - LRB103 03557 HLH 48563 b
3197	3197	1 bonds or other obligations from the tax imposed under
3198	3198	2 this Act, the amount exempted shall be the interest
3199	3199	3 net of bond premium amortization;
3200	3200	4 (H) Any income of the partnership which
3201	3201	5 constitutes personal service income as defined in
3202	3202	6 Section 1348(b)(1) of the Internal Revenue Code (as in
3203	3203	7 effect December 31, 1981) or a reasonable allowance
3204	3204	8 for compensation paid or accrued for services rendered
3205	3205	9 by partners to the partnership, whichever is greater;
3206	3206	10 this subparagraph (H) is exempt from the provisions of
3207	3207	11 Section 250;
3208	3208	12 (I) An amount equal to all amounts of income
3209	3209	13 distributable to an entity subject to the Personal
3210	3210	14 Property Tax Replacement Income Tax imposed by
3211	3211	15 subsections (c) and (d) of Section 201 of this Act
3212	3212	16 including amounts distributable to organizations
3213	3213	17 exempt from federal income tax by reason of Section
3214	3214	18 501(a) of the Internal Revenue Code; this subparagraph
3215	3215	19 (I) is exempt from the provisions of Section 250;
3216	3216	20 (J) With the exception of any amounts subtracted
3217	3217	21 under subparagraph (G), an amount equal to the sum of
3218	3218	22 all amounts disallowed as deductions by (i) Sections
3219	3219	23 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3220	3220	24 and all amounts of expenses allocable to interest and
3221	3221	25 disallowed as deductions by Section 265(a)(1) of the
3222	3222	26 Internal Revenue Code; and (ii) for taxable years
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227
3228	3228	HB0998 - 89 - LRB103 03557 HLH 48563 b
3229	3229
3230	3230
3231	3231	HB0998- 90 -LRB103 03557 HLH 48563 b HB0998 - 90 - LRB103 03557 HLH 48563 b
3232	3232	HB0998 - 90 - LRB103 03557 HLH 48563 b
3233	3233	1 ending on or after August 13, 1999, Sections
3234	3234	2 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3235	3235	3 Internal Revenue Code, plus, (iii) for taxable years
3236	3236	4 ending on or after December 31, 2011, Section
3237	3237	5 45G(e)(3) of the Internal Revenue Code and, for
3238	3238	6 taxable years ending on or after December 31, 2008,
3239	3239	7 any amount included in gross income under Section 87
3240	3240	8 of the Internal Revenue Code; the provisions of this
3241	3241	9 subparagraph are exempt from the provisions of Section
3242	3242	10 250;
3243	3243	11 (K) An amount equal to those dividends included in
3244	3244	12 such total which were paid by a corporation which
3245	3245	13 conducts business operations in a River Edge
3246	3246	14 Redevelopment Zone or zones created under the River
3247	3247	15 Edge Redevelopment Zone Act and conducts substantially
3248	3248	16 all of its operations from a River Edge Redevelopment
3249	3249	17 Zone or zones. This subparagraph (K) is exempt from
3250	3250	18 the provisions of Section 250;
3251	3251	19 (L) An amount equal to any contribution made to a
3252	3252	20 job training project established pursuant to the Real
3253	3253	21 Property Tax Increment Allocation Redevelopment Act;
3254	3254	22 (M) An amount equal to those dividends included in
3255	3255	23 such total that were paid by a corporation that
3256	3256	24 conducts business operations in a federally designated
3257	3257	25 Foreign Trade Zone or Sub-Zone and that is designated
3258	3258	26 a High Impact Business located in Illinois; provided
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263
3264	3264	HB0998 - 90 - LRB103 03557 HLH 48563 b
3265	3265
3266	3266
3267	3267	HB0998- 91 -LRB103 03557 HLH 48563 b HB0998 - 91 - LRB103 03557 HLH 48563 b
3268	3268	HB0998 - 91 - LRB103 03557 HLH 48563 b
3269	3269	1 that dividends eligible for the deduction provided in
3270	3270	2 subparagraph (K) of paragraph (2) of this subsection
3271	3271	3 shall not be eligible for the deduction provided under
3272	3272	4 this subparagraph (M);
3273	3273	5 (N) An amount equal to the amount of the deduction
3274	3274	6 used to compute the federal income tax credit for
3275	3275	7 restoration of substantial amounts held under claim of
3276	3276	8 right for the taxable year pursuant to Section 1341 of
3277	3277	9 the Internal Revenue Code;
3278	3278	10 (O) For taxable years 2001 and thereafter, for the
3279	3279	11 taxable year in which the bonus depreciation deduction
3280	3280	12 is taken on the taxpayer's federal income tax return
3281	3281	13 under subsection (k) of Section 168 of the Internal
3282	3282	14 Revenue Code and for each applicable taxable year
3283	3283	15 thereafter, an amount equal to "x", where:
3284	3284	16 (1) "y" equals the amount of the depreciation
3285	3285	17 deduction taken for the taxable year on the
3286	3286	18 taxpayer's federal income tax return on property
3287	3287	19 for which the bonus depreciation deduction was
3288	3288	20 taken in any year under subsection (k) of Section
3289	3289	21 168 of the Internal Revenue Code, but not
3290	3290	22 including the bonus depreciation deduction;
3291	3291	23 (2) for taxable years ending on or before
3292	3292	24 December 31, 2005, "x" equals "y" multiplied by 30
3293	3293	25 and then divided by 70 (or "y" multiplied by
3294	3294	26 0.429); and
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299
3300	3300	HB0998 - 91 - LRB103 03557 HLH 48563 b
3301	3301
3302	3302
3303	3303	HB0998- 92 -LRB103 03557 HLH 48563 b HB0998 - 92 - LRB103 03557 HLH 48563 b
3304	3304	HB0998 - 92 - LRB103 03557 HLH 48563 b
3305	3305	1 (3) for taxable years ending after December
3306	3306	2 31, 2005:
3307	3307	3 (i) for property on which a bonus
3308	3308	4 depreciation deduction of 30% of the adjusted
3309	3309	5 basis was taken, "x" equals "y" multiplied by
3310	3310	6 30 and then divided by 70 (or "y" multiplied
3311	3311	7 by 0.429);
3312	3312	8 (ii) for property on which a bonus
3313	3313	9 depreciation deduction of 50% of the adjusted
3314	3314	10 basis was taken, "x" equals "y" multiplied by
3315	3315	11 1.0;
3316	3316	12 (iii) for property on which a bonus
3317	3317	13 depreciation deduction of 100% of the adjusted
3318	3318	14 basis was taken in a taxable year ending on or
3319	3319	15 after December 31, 2021, "x" equals the
3320	3320	16 depreciation deduction that would be allowed
3321	3321	17 on that property if the taxpayer had made the
3322	3322	18 election under Section 168(k)(7) of the
3323	3323	19 Internal Revenue Code to not claim bonus
3324	3324	20 depreciation on that property; and
3325	3325	21 (iv) for property on which a bonus
3326	3326	22 depreciation deduction of a percentage other
3327	3327	23 than 30%, 50% or 100% of the adjusted basis
3328	3328	24 was taken in a taxable year ending on or after
3329	3329	25 December 31, 2021, "x" equals "y" multiplied
3330	3330	26 by 100 times the percentage bonus depreciation
3331	3331
3332	3332
3333	3333
3334	3334
3335	3335
3336	3336	HB0998 - 92 - LRB103 03557 HLH 48563 b
3337	3337
3338	3338
3339	3339	HB0998- 93 -LRB103 03557 HLH 48563 b HB0998 - 93 - LRB103 03557 HLH 48563 b
3340	3340	HB0998 - 93 - LRB103 03557 HLH 48563 b
3341	3341	1 on the property (that is, 100(bonus%)) and
3342	3342	2 then divided by 100 times 1 minus the
3343	3343	3 percentage bonus depreciation on the property
3344	3344	4 (that is, 100(1bonus%)).
3345	3345	5 The aggregate amount deducted under this
3346	3346	6 subparagraph in all taxable years for any one piece of
3347	3347	7 property may not exceed the amount of the bonus
3348	3348	8 depreciation deduction taken on that property on the
3349	3349	9 taxpayer's federal income tax return under subsection
3350	3350	10 (k) of Section 168 of the Internal Revenue Code. This
3351	3351	11 subparagraph (O) is exempt from the provisions of
3352	3352	12 Section 250;
3353	3353	13 (P) If the taxpayer sells, transfers, abandons, or
3354	3354	14 otherwise disposes of property for which the taxpayer
3355	3355	15 was required in any taxable year to make an addition
3356	3356	16 modification under subparagraph (D-5), then an amount
3357	3357	17 equal to that addition modification.
3358	3358	18 If the taxpayer continues to own property through
3359	3359	19 the last day of the last tax year for which a
3360	3360	20 subtraction is allowed with respect to that property
3361	3361	21 under subparagraph (O) and for which the taxpayer was
3362	3362	22 required in any taxable year to make an addition
3363	3363	23 modification under subparagraph (D-5), then an amount
3364	3364	24 equal to that addition modification.
3365	3365	25 The taxpayer is allowed to take the deduction
3366	3366	26 under this subparagraph only once with respect to any
3367	3367
3368	3368
3369	3369
3370	3370
3371	3371
3372	3372	HB0998 - 93 - LRB103 03557 HLH 48563 b
3373	3373
3374	3374
3375	3375	HB0998- 94 -LRB103 03557 HLH 48563 b HB0998 - 94 - LRB103 03557 HLH 48563 b
3376	3376	HB0998 - 94 - LRB103 03557 HLH 48563 b
3377	3377	1 one piece of property.
3378	3378	2 This subparagraph (P) is exempt from the
3379	3379	3 provisions of Section 250;
3380	3380	4 (Q) The amount of (i) any interest income (net of
3381	3381	5 the deductions allocable thereto) taken into account
3382	3382	6 for the taxable year with respect to a transaction
3383	3383	7 with a taxpayer that is required to make an addition
3384	3384	8 modification with respect to such transaction under
3385	3385	9 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3386	3386	10 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3387	3387	11 the amount of such addition modification and (ii) any
3388	3388	12 income from intangible property (net of the deductions
3389	3389	13 allocable thereto) taken into account for the taxable
3390	3390	14 year with respect to a transaction with a taxpayer
3391	3391	15 that is required to make an addition modification with
3392	3392	16 respect to such transaction under Section
3393	3393	17 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3394	3394	18 203(d)(2)(D-8), but not to exceed the amount of such
3395	3395	19 addition modification. This subparagraph (Q) is exempt
3396	3396	20 from Section 250;
3397	3397	21 (R) An amount equal to the interest income taken
3398	3398	22 into account for the taxable year (net of the
3399	3399	23 deductions allocable thereto) with respect to
3400	3400	24 transactions with (i) a foreign person who would be a
3401	3401	25 member of the taxpayer's unitary business group but
3402	3402	26 for the fact that the foreign person's business
3403	3403
3404	3404
3405	3405
3406	3406
3407	3407
3408	3408	HB0998 - 94 - LRB103 03557 HLH 48563 b
3409	3409
3410	3410
3411	3411	HB0998- 95 -LRB103 03557 HLH 48563 b HB0998 - 95 - LRB103 03557 HLH 48563 b
3412	3412	HB0998 - 95 - LRB103 03557 HLH 48563 b
3413	3413	1 activity outside the United States is 80% or more of
3414	3414	2 that person's total business activity and (ii) for
3415	3415	3 taxable years ending on or after December 31, 2008, to
3416	3416	4 a person who would be a member of the same unitary
3417	3417	5 business group but for the fact that the person is
3418	3418	6 prohibited under Section 1501(a)(27) from being
3419	3419	7 included in the unitary business group because he or
3420	3420	8 she is ordinarily required to apportion business
3421	3421	9 income under different subsections of Section 304, but
3422	3422	10 not to exceed the addition modification required to be
3423	3423	11 made for the same taxable year under Section
3424	3424	12 203(d)(2)(D-7) for interest paid, accrued, or
3425	3425	13 incurred, directly or indirectly, to the same person.
3426	3426	14 This subparagraph (R) is exempt from Section 250;
3427	3427	15 (S) An amount equal to the income from intangible
3428	3428	16 property taken into account for the taxable year (net
3429	3429	17 of the deductions allocable thereto) with respect to
3430	3430	18 transactions with (i) a foreign person who would be a
3431	3431	19 member of the taxpayer's unitary business group but
3432	3432	20 for the fact that the foreign person's business
3433	3433	21 activity outside the United States is 80% or more of
3434	3434	22 that person's total business activity and (ii) for
3435	3435	23 taxable years ending on or after December 31, 2008, to
3436	3436	24 a person who would be a member of the same unitary
3437	3437	25 business group but for the fact that the person is
3438	3438	26 prohibited under Section 1501(a)(27) from being
3439	3439
3440	3440
3441	3441
3442	3442
3443	3443
3444	3444	HB0998 - 95 - LRB103 03557 HLH 48563 b
3445	3445
3446	3446
3447	3447	HB0998- 96 -LRB103 03557 HLH 48563 b HB0998 - 96 - LRB103 03557 HLH 48563 b
3448	3448	HB0998 - 96 - LRB103 03557 HLH 48563 b
3449	3449	1 included in the unitary business group because he or
3450	3450	2 she is ordinarily required to apportion business
3451	3451	3 income under different subsections of Section 304, but
3452	3452	4 not to exceed the addition modification required to be
3453	3453	5 made for the same taxable year under Section
3454	3454	6 203(d)(2)(D-8) for intangible expenses and costs paid,
3455	3455	7 accrued, or incurred, directly or indirectly, to the
3456	3456	8 same person. This subparagraph (S) is exempt from
3457	3457	9 Section 250; and
3458	3458	10 (T) For taxable years ending on or after December
3459	3459	11 31, 2011, in the case of a taxpayer who was required to
3460	3460	12 add back any insurance premiums under Section
3461	3461	13 203(d)(2)(D-9), such taxpayer may elect to subtract
3462	3462	14 that part of a reimbursement received from the
3463	3463	15 insurance company equal to the amount of the expense
3464	3464	16 or loss (including expenses incurred by the insurance
3465	3465	17 company) that would have been taken into account as a
3466	3466	18 deduction for federal income tax purposes if the
3467	3467	19 expense or loss had been uninsured. If a taxpayer
3468	3468	20 makes the election provided for by this subparagraph
3469	3469	21 (T), the insurer to which the premiums were paid must
3470	3470	22 add back to income the amount subtracted by the
3471	3471	23 taxpayer pursuant to this subparagraph (T). This
3472	3472	24 subparagraph (T) is exempt from the provisions of
3473	3473	25 Section 250; and .
3474	3474	26 (U) For taxable years beginning on or after
3475	3475
3476	3476
3477	3477
3478	3478
3479	3479
3480	3480	HB0998 - 96 - LRB103 03557 HLH 48563 b
3481	3481
3482	3482
3483	3483	HB0998- 97 -LRB103 03557 HLH 48563 b HB0998 - 97 - LRB103 03557 HLH 48563 b
3484	3484	HB0998 - 97 - LRB103 03557 HLH 48563 b
3485	3485	1 January 1, 2024, the amount of any federal deduction
3486	3486	2 disallowed pursuant to Section 280E of the Internal
3487	3487	3 Revenue Code related to the production and
3488	3488	4 distribution of adult-use cannabis products by an
3489	3489	5 entity licensed under the Cannabis Regulation and Tax
3490	3490	6 Act, if those amounts are not used as the basis for any
3491	3491	7 other tax deduction, exemption, or credit and not
3492	3492	8 otherwise required to be added back when computing the
3493	3493	9 taxpayer's base income under this Section. This
3494	3494	10 subparagraph (U) is exempt from the provisions of
3495	3495	11 Section 250.
3496	3496	12 (e) Gross income; adjusted gross income; taxable income.
3497	3497	13 (1) In general. Subject to the provisions of paragraph
3498	3498	14 (2) and subsection (b)(3), for purposes of this Section
3499	3499	15 and Section 803(e), a taxpayer's gross income, adjusted
3500	3500	16 gross income, or taxable income for the taxable year shall
3501	3501	17 mean the amount of gross income, adjusted gross income or
3502	3502	18 taxable income properly reportable for federal income tax
3503	3503	19 purposes for the taxable year under the provisions of the
3504	3504	20 Internal Revenue Code. Taxable income may be less than
3505	3505	21 zero. However, for taxable years ending on or after
3506	3506	22 December 31, 1986, net operating loss carryforwards from
3507	3507	23 taxable years ending prior to December 31, 1986, may not
3508	3508	24 exceed the sum of federal taxable income for the taxable
3509	3509	25 year before net operating loss deduction, plus the excess
3510	3510
3511	3511
3512	3512
3513	3513
3514	3514
3515	3515	HB0998 - 97 - LRB103 03557 HLH 48563 b
3516	3516
3517	3517
3518	3518	HB0998- 98 -LRB103 03557 HLH 48563 b HB0998 - 98 - LRB103 03557 HLH 48563 b
3519	3519	HB0998 - 98 - LRB103 03557 HLH 48563 b
3520	3520	1 of addition modifications over subtraction modifications
3521	3521	2 for the taxable year. For taxable years ending prior to
3522	3522	3 December 31, 1986, taxable income may never be an amount
3523	3523	4 in excess of the net operating loss for the taxable year as
3524	3524	5 defined in subsections (c) and (d) of Section 172 of the
3525	3525	6 Internal Revenue Code, provided that when taxable income
3526	3526	7 of a corporation (other than a Subchapter S corporation),
3527	3527	8 trust, or estate is less than zero and addition
3528	3528	9 modifications, other than those provided by subparagraph
3529	3529	10 (E) of paragraph (2) of subsection (b) for corporations or
3530	3530	11 subparagraph (E) of paragraph (2) of subsection (c) for
3531	3531	12 trusts and estates, exceed subtraction modifications, an
3532	3532	13 addition modification must be made under those
3533	3533	14 subparagraphs for any other taxable year to which the
3534	3534	15 taxable income less than zero (net operating loss) is
3535	3535	16 applied under Section 172 of the Internal Revenue Code or
3536	3536	17 under subparagraph (E) of paragraph (2) of this subsection
3537	3537	18 (e) applied in conjunction with Section 172 of the
3538	3538	19 Internal Revenue Code.
3539	3539	20 (2) Special rule. For purposes of paragraph (1) of
3540	3540	21 this subsection, the taxable income properly reportable
3541	3541	22 for federal income tax purposes shall mean:
3542	3542	23 (A) Certain life insurance companies. In the case
3543	3543	24 of a life insurance company subject to the tax imposed
3544	3544	25 by Section 801 of the Internal Revenue Code, life
3545	3545	26 insurance company taxable income, plus the amount of
3546	3546
3547	3547
3548	3548
3549	3549
3550	3550
3551	3551	HB0998 - 98 - LRB103 03557 HLH 48563 b
3552	3552
3553	3553
3554	3554	HB0998- 99 -LRB103 03557 HLH 48563 b HB0998 - 99 - LRB103 03557 HLH 48563 b
3555	3555	HB0998 - 99 - LRB103 03557 HLH 48563 b
3556	3556	1 distribution from pre-1984 policyholder surplus
3557	3557	2 accounts as calculated under Section 815a of the
3558	3558	3 Internal Revenue Code;
3559	3559	4 (B) Certain other insurance companies. In the case
3560	3560	5 of mutual insurance companies subject to the tax
3561	3561	6 imposed by Section 831 of the Internal Revenue Code,
3562	3562	7 insurance company taxable income;
3563	3563	8 (C) Regulated investment companies. In the case of
3564	3564	9 a regulated investment company subject to the tax
3565	3565	10 imposed by Section 852 of the Internal Revenue Code,
3566	3566	11 investment company taxable income;
3567	3567	12 (D) Real estate investment trusts. In the case of
3568	3568	13 a real estate investment trust subject to the tax
3569	3569	14 imposed by Section 857 of the Internal Revenue Code,
3570	3570	15 real estate investment trust taxable income;
3571	3571	16 (E) Consolidated corporations. In the case of a
3572	3572	17 corporation which is a member of an affiliated group
3573	3573	18 of corporations filing a consolidated income tax
3574	3574	19 return for the taxable year for federal income tax
3575	3575	20 purposes, taxable income determined as if such
3576	3576	21 corporation had filed a separate return for federal
3577	3577	22 income tax purposes for the taxable year and each
3578	3578	23 preceding taxable year for which it was a member of an
3579	3579	24 affiliated group. For purposes of this subparagraph,
3580	3580	25 the taxpayer's separate taxable income shall be
3581	3581	26 determined as if the election provided by Section
3582	3582
3583	3583
3584	3584
3585	3585
3586	3586
3587	3587	HB0998 - 99 - LRB103 03557 HLH 48563 b
3588	3588
3589	3589
3590	3590	HB0998- 100 -LRB103 03557 HLH 48563 b HB0998 - 100 - LRB103 03557 HLH 48563 b
3591	3591	HB0998 - 100 - LRB103 03557 HLH 48563 b
3592	3592	1 243(b)(2) of the Internal Revenue Code had been in
3593	3593	2 effect for all such years;
3594	3594	3 (F) Cooperatives. In the case of a cooperative
3595	3595	4 corporation or association, the taxable income of such
3596	3596	5 organization determined in accordance with the
3597	3597	6 provisions of Section 1381 through 1388 of the
3598	3598	7 Internal Revenue Code, but without regard to the
3599	3599	8 prohibition against offsetting losses from patronage
3600	3600	9 activities against income from nonpatronage
3601	3601	10 activities; except that a cooperative corporation or
3602	3602	11 association may make an election to follow its federal
3603	3603	12 income tax treatment of patronage losses and
3604	3604	13 nonpatronage losses. In the event such election is
3605	3605	14 made, such losses shall be computed and carried over
3606	3606	15 in a manner consistent with subsection (a) of Section
3607	3607	16 207 of this Act and apportioned by the apportionment
3608	3608	17 factor reported by the cooperative on its Illinois
3609	3609	18 income tax return filed for the taxable year in which
3610	3610	19 the losses are incurred. The election shall be
3611	3611	20 effective for all taxable years with original returns
3612	3612	21 due on or after the date of the election. In addition,
3613	3613	22 the cooperative may file an amended return or returns,
3614	3614	23 as allowed under this Act, to provide that the
3615	3615	24 election shall be effective for losses incurred or
3616	3616	25 carried forward for taxable years occurring prior to
3617	3617	26 the date of the election. Once made, the election may
3618	3618
3619	3619
3620	3620
3621	3621
3622	3622
3623	3623	HB0998 - 100 - LRB103 03557 HLH 48563 b
3624	3624
3625	3625
3626	3626	HB0998- 101 -LRB103 03557 HLH 48563 b HB0998 - 101 - LRB103 03557 HLH 48563 b
3627	3627	HB0998 - 101 - LRB103 03557 HLH 48563 b
3628	3628	1 only be revoked upon approval of the Director. The
3629	3629	2 Department shall adopt rules setting forth
3630	3630	3 requirements for documenting the elections and any
3631	3631	4 resulting Illinois net loss and the standards to be
3632	3632	5 used by the Director in evaluating requests to revoke
3633	3633	6 elections. Public Act 96-932 is declaratory of
3634	3634	7 existing law;
3635	3635	8 (G) Subchapter S corporations. In the case of: (i)
3636	3636	9 a Subchapter S corporation for which there is in
3637	3637	10 effect an election for the taxable year under Section
3638	3638	11 1362 of the Internal Revenue Code, the taxable income
3639	3639	12 of such corporation determined in accordance with
3640	3640	13 Section 1363(b) of the Internal Revenue Code, except
3641	3641	14 that taxable income shall take into account those
3642	3642	15 items which are required by Section 1363(b)(1) of the
3643	3643	16 Internal Revenue Code to be separately stated; and
3644	3644	17 (ii) a Subchapter S corporation for which there is in
3645	3645	18 effect a federal election to opt out of the provisions
3646	3646	19 of the Subchapter S Revision Act of 1982 and have
3647	3647	20 applied instead the prior federal Subchapter S rules
3648	3648	21 as in effect on July 1, 1982, the taxable income of
3649	3649	22 such corporation determined in accordance with the
3650	3650	23 federal Subchapter S rules as in effect on July 1,
3651	3651	24 1982; and
3652	3652	25 (H) Partnerships. In the case of a partnership,
3653	3653	26 taxable income determined in accordance with Section
3654	3654
3655	3655
3656	3656
3657	3657
3658	3658
3659	3659	HB0998 - 101 - LRB103 03557 HLH 48563 b
3660	3660
3661	3661
3662	3662	HB0998- 102 -LRB103 03557 HLH 48563 b HB0998 - 102 - LRB103 03557 HLH 48563 b
3663	3663	HB0998 - 102 - LRB103 03557 HLH 48563 b
3664	3664	1 703 of the Internal Revenue Code, except that taxable
3665	3665	2 income shall take into account those items which are
3666	3666	3 required by Section 703(a)(1) to be separately stated
3667	3667	4 but which would be taken into account by an individual
3668	3668	5 in calculating his taxable income.
3669	3669	6 (3) Recapture of business expenses on disposition of
3670	3670	7 asset or business. Notwithstanding any other law to the
3671	3671	8 contrary, if in prior years income from an asset or
3672	3672	9 business has been classified as business income and in a
3673	3673	10 later year is demonstrated to be non-business income, then
3674	3674	11 all expenses, without limitation, deducted in such later
3675	3675	12 year and in the 2 immediately preceding taxable years
3676	3676	13 related to that asset or business that generated the
3677	3677	14 non-business income shall be added back and recaptured as
3678	3678	15 business income in the year of the disposition of the
3679	3679	16 asset or business. Such amount shall be apportioned to
3680	3680	17 Illinois using the greater of the apportionment fraction
3681	3681	18 computed for the business under Section 304 of this Act
3682	3682	19 for the taxable year or the average of the apportionment
3683	3683	20 fractions computed for the business under Section 304 of
3684	3684	21 this Act for the taxable year and for the 2 immediately
3685	3685	22 preceding taxable years.
3686	3686	23 (f) Valuation limitation amount.
3687	3687	24 (1) In general. The valuation limitation amount
3688	3688	25 referred to in subsections (a)(2)(G), (c)(2)(I) and
3689	3689
3690	3690
3691	3691
3692	3692
3693	3693
3694	3694	HB0998 - 102 - LRB103 03557 HLH 48563 b
3695	3695
3696	3696
3697	3697	HB0998- 103 -LRB103 03557 HLH 48563 b HB0998 - 103 - LRB103 03557 HLH 48563 b
3698	3698	HB0998 - 103 - LRB103 03557 HLH 48563 b
3699	3699	1 (d)(2)(E) is an amount equal to:
3700	3700	2 (A) The sum of the pre-August 1, 1969 appreciation
3701	3701	3 amounts (to the extent consisting of gain reportable
3702	3702	4 under the provisions of Section 1245 or 1250 of the
3703	3703	5 Internal Revenue Code) for all property in respect of
3704	3704	6 which such gain was reported for the taxable year;
3705	3705	7 plus
3706	3706	8 (B) The lesser of (i) the sum of the pre-August 1,
3707	3707	9 1969 appreciation amounts (to the extent consisting of
3708	3708	10 capital gain) for all property in respect of which
3709	3709	11 such gain was reported for federal income tax purposes
3710	3710	12 for the taxable year, or (ii) the net capital gain for
3711	3711	13 the taxable year, reduced in either case by any amount
3712	3712	14 of such gain included in the amount determined under
3713	3713	15 subsection (a)(2)(F) or (c)(2)(H).
3714	3714	16 (2) Pre-August 1, 1969 appreciation amount.
3715	3715	17 (A) If the fair market value of property referred
3716	3716	18 to in paragraph (1) was readily ascertainable on
3717	3717	19 August 1, 1969, the pre-August 1, 1969 appreciation
3718	3718	20 amount for such property is the lesser of (i) the
3719	3719	21 excess of such fair market value over the taxpayer's
3720	3720	22 basis (for determining gain) for such property on that
3721	3721	23 date (determined under the Internal Revenue Code as in
3722	3722	24 effect on that date), or (ii) the total gain realized
3723	3723	25 and reportable for federal income tax purposes in
3724	3724	26 respect of the sale, exchange or other disposition of
3725	3725
3726	3726
3727	3727
3728	3728
3729	3729
3730	3730	HB0998 - 103 - LRB103 03557 HLH 48563 b
3731	3731
3732	3732
3733	3733	HB0998- 104 -LRB103 03557 HLH 48563 b HB0998 - 104 - LRB103 03557 HLH 48563 b
3734	3734	HB0998 - 104 - LRB103 03557 HLH 48563 b
3735	3735	1 such property.
3736	3736	2 (B) If the fair market value of property referred
3737	3737	3 to in paragraph (1) was not readily ascertainable on
3738	3738	4 August 1, 1969, the pre-August 1, 1969 appreciation
3739	3739	5 amount for such property is that amount which bears
3740	3740	6 the same ratio to the total gain reported in respect of
3741	3741	7 the property for federal income tax purposes for the
3742	3742	8 taxable year, as the number of full calendar months in
3743	3743	9 that part of the taxpayer's holding period for the
3744	3744	10 property ending July 31, 1969 bears to the number of
3745	3745	11 full calendar months in the taxpayer's entire holding
3746	3746	12 period for the property.
3747	3747	13 (C) The Department shall prescribe such
3748	3748	14 regulations as may be necessary to carry out the
3749	3749	15 purposes of this paragraph.
3750	3750	16 (g) Double deductions. Unless specifically provided
3751	3751	17 otherwise, nothing in this Section shall permit the same item
3752	3752	18 to be deducted more than once.
3753	3753	19 (h) Legislative intention. Except as expressly provided by
3754	3754	20 this Section there shall be no modifications or limitations on
3755	3755	21 the amounts of income, gain, loss or deduction taken into
3756	3756	22 account in determining gross income, adjusted gross income or
3757	3757	23 taxable income for federal income tax purposes for the taxable
3758	3758	24 year, or in the amount of such items entering into the
3759	3759
3760	3760
3761	3761
3762	3762
3763	3763
3764	3764	HB0998 - 104 - LRB103 03557 HLH 48563 b
3765	3765
3766	3766
3767	3767	HB0998- 105 -LRB103 03557 HLH 48563 b HB0998 - 105 - LRB103 03557 HLH 48563 b
3768	3768	HB0998 - 105 - LRB103 03557 HLH 48563 b
3769	3769	1 computation of base income and net income under this Act for
3770	3770	2 such taxable year, whether in respect of property values as of
3771	3771	3 August 1, 1969 or otherwise.
3772	3772	4 (Source: P.A. 101-9, eff. 6-5-19; 101-81, eff. 7-12-19;
3773	3773	5 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658, eff.
3774	3774	6 8-27-21; 102-813, eff. 5-13-22.)
3775	3775	7 Section 99. Effective date. This Act takes effect upon
3776	3776	8 becoming law.
3777	3777
3778	3778
3779	3779
3780	3780
3781	3781
3782	3782	HB0998 - 105 - LRB103 03557 HLH 48563 b