Illinois House Bill HB3039 Latest Draft

                            103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3039 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:  New Act30 ILCS 105/5.990 new30 ILCS 105/6z-139 new35 ILCS 5/203 from Ch. 120, par. 2-20335 ILCS 5/901   Creates the Extremely High Wealth Mark-to-Market Tax Act. Provides that a resident taxpayer with net assets worth $1,000,000,000 or more on December 31 of the tax year shall recognize gains or losses as if each asset owned by that taxpayer on December 31 of the tax year had been sold for its fair market value on December 31 of the tax year but with adjustment made for taxes paid on gains in previous years. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.  LRB103 26307 HLH 52667 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3039 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:  New Act30 ILCS 105/5.990 new30 ILCS 105/6z-139 new35 ILCS 5/203 from Ch. 120, par. 2-20335 ILCS 5/901 New Act  30 ILCS 105/5.990 new  30 ILCS 105/6z-139 new  35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/901  Creates the Extremely High Wealth Mark-to-Market Tax Act. Provides that a resident taxpayer with net assets worth $1,000,000,000 or more on December 31 of the tax year shall recognize gains or losses as if each asset owned by that taxpayer on December 31 of the tax year had been sold for its fair market value on December 31 of the tax year but with adjustment made for taxes paid on gains in previous years. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.  LRB103 26307 HLH 52667 b     LRB103 26307 HLH 52667 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3039 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
New Act30 ILCS 105/5.990 new30 ILCS 105/6z-139 new35 ILCS 5/203 from Ch. 120, par. 2-20335 ILCS 5/901 New Act  30 ILCS 105/5.990 new  30 ILCS 105/6z-139 new  35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/901
New Act
30 ILCS 105/5.990 new
30 ILCS 105/6z-139 new
35 ILCS 5/203 from Ch. 120, par. 2-203
35 ILCS 5/901
Creates the Extremely High Wealth Mark-to-Market Tax Act. Provides that a resident taxpayer with net assets worth $1,000,000,000 or more on December 31 of the tax year shall recognize gains or losses as if each asset owned by that taxpayer on December 31 of the tax year had been sold for its fair market value on December 31 of the tax year but with adjustment made for taxes paid on gains in previous years. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
LRB103 26307 HLH 52667 b     LRB103 26307 HLH 52667 b
    LRB103 26307 HLH 52667 b
A BILL FOR
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  HB3039  LRB103 26307 HLH 52667 b
1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 1. Short title. This Act may be cited as the
5  Extremely High Wealth Mark-to-Market Tax Act.
6  Section 3. Definitions. As used in this Act:
7  "Basis" means the fair market value of an asset on
8  December 31 of the taxable year immediately preceding the
9  taxable year in which the gain or loss is calculated under this
10  Act. If the asset is acquired by the taxpayer during the
11  taxable year, then the basis shall be the taxpayer's basis in
12  the asset for the purpose of calculating capital gains under
13  the federal Internal Revenue Code.
14  "Net income" has the meaning given to that term in Section
15  202 of the Illinois Income Tax Act.
16  "Phase-in cap amount" means an amount equal to one-fourth
17  of the worth of a taxpayer's net assets in excess of
18  $1,000,000,000 on December 31 of the taxable year for which
19  gains or losses are calculated under this Act.
20  "Resident taxpayer" means an individual, other than a
21  nonresident of the State or a part-year resident of the State,
22  who is subject to the tax imposed under subsections (a) and (b)
23  of Section 201 of the Illinois Income Tax Act for the taxable

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3039 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
New Act30 ILCS 105/5.990 new30 ILCS 105/6z-139 new35 ILCS 5/203 from Ch. 120, par. 2-20335 ILCS 5/901 New Act  30 ILCS 105/5.990 new  30 ILCS 105/6z-139 new  35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/901
New Act
30 ILCS 105/5.990 new
30 ILCS 105/6z-139 new
35 ILCS 5/203 from Ch. 120, par. 2-203
35 ILCS 5/901
Creates the Extremely High Wealth Mark-to-Market Tax Act. Provides that a resident taxpayer with net assets worth $1,000,000,000 or more on December 31 of the tax year shall recognize gains or losses as if each asset owned by that taxpayer on December 31 of the tax year had been sold for its fair market value on December 31 of the tax year but with adjustment made for taxes paid on gains in previous years. Amends the Illinois Income Tax Act to make conforming changes. Effective immediately.
LRB103 26307 HLH 52667 b     LRB103 26307 HLH 52667 b
    LRB103 26307 HLH 52667 b
A BILL FOR

 

 

New Act
30 ILCS 105/5.990 new
30 ILCS 105/6z-139 new
35 ILCS 5/203 from Ch. 120, par. 2-203
35 ILCS 5/901



    LRB103 26307 HLH 52667 b

 

 



 

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1  year.
2  "Taxable year" or "tax year" has the meaning ascribed to
3  the term "taxable year" in Section 1501 of the Illinois Income
4  Tax Act.
5  Section 5. Tax imposed; tax years ending on or after
6  December 31, 2023 and ending prior to December 31, 2024.
7  (a) Notwithstanding any other provision of law, for tax
8  years ending on or after December 31, 2023 and ending prior to
9  December 31, 2024, a resident taxpayer with net assets worth
10  $1,000,000,000 or more on December 31, 2023 shall recognize
11  gains or losses as if each asset owned by that taxpayer had
12  been sold for its fair market value on December 31, 2023. An
13  amount equal to the lesser of (i) the difference between the
14  total fair market value, on December 31, 2023, of all assets
15  held by the taxpayer on that date and the combined basis of all
16  assets held by the taxpayer on that date or (ii) the phase-in
17  cap amount shall be included in the taxpayer's net income for
18  that tax year for the purpose of calculating the tax due under
19  the Illinois Income Tax Act. Proper adjustment shall be made
20  in the amount of any gain or loss subsequently realized for
21  gains or losses taken into account under this subsection. At
22  the taxpayer's option, the tax payable as a result of this
23  Section shall either be payable in one installment or else
24  shall be payable annually in 10 equal installments beginning
25  in the year of the effective date of this Act and with all such

 

 

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1  installment payments commencing after the initial installment
2  payment also being subject to an annual nondeductible deferral
3  charge of 7.5% annually.
4  (b) For resident taxpayers who would recognize net gains
5  as a result of this Section except for the operation of this
6  sentence, if the taxpayer can show that any portion of those
7  gains was accumulated prior to the taxpayer becoming a
8  resident taxpayer of Illinois, and if the taxpayer can also
9  show that a portion of those gains was previously taxed by any
10  state or jurisdiction in which the taxpayer was a resident
11  prior to becoming a resident of Illinois, then credit shall be
12  provided in the amount of the tax on those gains that was paid
13  to any such prior state or jurisdiction. Any credits so
14  provided by this subsection, however, shall not exceed the
15  lesser of the total tax owed under this Section on such gains
16  and the tax imposed on such gains by such other prior states or
17  jurisdictions in which the taxpayer was a resident prior to
18  becoming a resident individual of Illinois.
19  Section 10. Tax imposed; tax years ending on or after
20  December 31, 2024.
21  (a) For taxable years ending on or after December 31,
22  2024, a resident taxpayer with net assets worth $1,000,000,000
23  or more on December 31 of the tax year shall recognize gains or
24  losses as if each asset owned by that taxpayer on December 31
25  of the tax year had been sold for its fair market value on

 

 

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1  December 31 of the tax year but with adjustment made for taxes
2  paid on gains in previous years. Any resulting net gains from
3  these deemed sales, up to the phase-in cap amount, shall be
4  included in the taxpayer's income for such taxable year.
5  Proper adjustment shall be made in the amount of any gain or
6  loss subsequently realized for gain or loss taken into account
7  under the preceding sentence. To the extent that the losses of
8  a taxpayer exceed the taxpayer's gains, such net losses shall
9  not be recognized in such taxable year and shall instead carry
10  forward indefinitely.
11  (b) For resident taxpayers who would recognize net gains
12  as a result of this Section except for the operation of this
13  sentence, if the taxpayer can show that any portion of those
14  gains was accumulated prior to the taxpayer becoming a
15  resident taxpayer of Illinois, and if the taxpayer can also
16  show that a portion of those gains was previously taxed by any
17  state or jurisdiction in which the taxpayer was a resident
18  prior to becoming a resident of Illinois, then credit shall be
19  provided in the amount of the tax on those gains that was paid
20  to any such prior state or jurisdiction. Any credits so
21  provided by this subsection, however, shall not exceed the
22  lesser of the total tax owed under this Section on such gains
23  and the tax imposed on such gains by such other prior states or
24  jurisdictions in which the taxpayer was a resident prior to
25  becoming a resident individual of Illinois.

 

 

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1  Section 20. Net worth calculation.
2  (a) As used in this Act, the term "asset" means all real or
3  personal property, whether tangible or intangible and wherever
4  situated, that is: (1) owned by the taxpayer; (2) owned by the
5  taxpayer's spouse, minor children, or any trust or estate of
6  which the taxpayer is a beneficiary; (3) contributed by the
7  taxpayer, or the taxpayer's spouse, minor children, or any
8  trust or estate of which the taxpayer is a beneficiary, to any
9  private foundation, donor advised fund, and any other entity
10  described in section 501(c) or section 527 of the Internal
11  Revenue Code of which the taxpayer, or the taxpayer's spouse,
12  minor children, or any trust or estate of which the taxpayer is
13  a beneficiary, is a substantial contributor (as such term is
14  defined in Section 4958(c)(3)(B)(i) of the Internal Revenue
15  Code); and (4) without duplication, all gifts and donations
16  made within the past 5 years by the taxpayer, or the taxpayer's
17  spouse, minor children, or any trust or estate of which the
18  taxpayer is a beneficiary, as if such gifts and donations were
19  still owned by the taxpayer. As used in this Section, "net
20  assets" means the fair market value of the taxpayer's assets
21  less the fair market value of the taxpayer's liabilities and,
22  in appropriate cases as determined by the Department of
23  Revenue, liabilities of such other persons described in this
24  Section.
25  (b) The term "assets" includes the real or personal
26  property described in subsection (a), but only to the extent

 

 

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1  allowable under the Illinois Constitution, the United States
2  Constitution, and any other governing federal law.
3  Section 25. Fair market value.
4  (a) The fair market value of each asset owned by the
5  taxpayer shall be the price at which the asset would change
6  hands between a willing buyer and a willing seller, neither
7  being under any compulsion to buy or to sell and both having
8  reasonable knowledge of relevant facts. The value of a
9  particular asset shall not be the price that a forced sale of
10  the property would produce. Further, the fair market value of
11  an asset shall not be its sale price in a market other than a
12  market in which the item is most commonly sold to the public,
13  taking into account the location of the item wherever
14  appropriate. In the case of an asset that is generally
15  obtained by the public in the retail market, the fair market
16  value of such an asset shall be the price at which the item or
17  a comparable item would be sold at retail.
18  (b) For purposes of this Section, any feature of an asset,
19  such as a poison pill, that was added with the intent, and has
20  the effect, of reducing the value of the asset shall be
21  disregarded, and no valuation or other discount shall be taken
22  into account if it would have the effect of reducing the value
23  of a pro rata economic interest in an asset below the pro rata
24  portion of the value of the entire asset.

 

 

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1  Section 30. Administration.
2  (a) The Department of Revenue shall amend or create tax
3  forms as necessary for the reporting of gains by assets.
4  Assets shall be listed with (i) a description of the asset,
5  (ii) the asset category, (iii) the year the asset was
6  acquired, (iv) the adjusted Illinois basis of the asset as of
7  December 31 of the tax year, (v) the fair market value of the
8  asset as of December 31 of the tax year, and (vi) the amount of
9  gain that would be taxable under this Act, unless the
10  Department determines that one or more categories is not
11  appropriate for a particular type of asset.
12  (b) Asset categories separately listed shall include, but
13  shall not be limited to, the following:
14  (1) stock held in any publicly traded corporation;
15  (2) stock held in any private C corporation;
16  (3) stock held in any S corporation;
17  (4) interests in any private equity or hedge fund
18  organized as a partnership;
19  (5) interests in any other partnerships;
20  (6) interests in any other noncorporate businesses;
21  (7) bonds and interest bearing savings accounts, cash
22  and deposits;
23  (8) interests in mutual funds or index funds;
24  (9) put and call options;
25  (10) futures contracts;
26  (11) financial assets held offshore reported on IRS

 

 

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1  tax form 8938;
2  (12) real property;
3  (13) art and collectibles;
4  (14) pension funds;
5  (15) other assets;
6  (16) debts and liabilities; and
7  (17) assets not owned by the taxpayer but which count
8  toward the $1,000,000,000 threshold pursuant to Section
9  20.
10  (c) The Department shall specifically request the filing
11  of such forms by any resident individual expected to have net
12  assets in excess of $1,000,000,000. Such taxpayers shall
13  include, but not be limited to, taxpayers with an adjusted
14  gross income summed over the previous 10 years in excess of
15  $600,000,000.
16  Section 35. Mark-to-market in other states. If a resident
17  taxpayer becomes an Illinois resident subsequent to paying tax
18  to another state as a result of recognizing gain or loss
19  pursuant to any mark-to-market or deemed-realization regime of
20  that other state, proper adjustment shall be made in the
21  amount of any gain or loss subsequently realized for gain or
22  loss taken into account under such mark-to-market or
23  deemed-realization regime of that other state for purposes of
24  computing gain or loss under Sections 5 or 10 of this Act.

 

 

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1  Section 40. Collection. The Department of Revenue shall
2  collect the mark-to-market taxes imposed by this Act. Money
3  collected, after deducting amounts necessary for
4  administration and enforcement by the Department, shall be
5  paid into the Working Families Fund in the State treasury.
6  Section 45. Rules. The Department of Revenue shall adopt
7  rules necessary or appropriate to carry out the purposes of
8  this Act, including rules to prevent the use of year-end
9  transfers, related parties, or other arrangements to avoid its
10  provisions.
11  Section 900. The State Finance Act is amended by adding
12  Section 5.990 as follows:
13  (30 ILCS 105/5.990 new)
14  Sec. 5.990. The Working Families Fund.
15  Section 905. The State Finance Act is amended by adding
16  Section 6z-139 as follows:
17  (30 ILCS 105/6z-139 new)
18  Sec. 6z-139. The Working Families Fund; creation. The
19  Working Families Fund is hereby created as a special fund in
20  the State treasury. All moneys deposited into the Fund shall
21  be appropriated for the purpose of providing child care,

 

 

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1  ending homelessness, or supporting public schools. Moneys
2  appropriated from the Fund shall supplement and not supplant
3  the current levels of funding for each item.
4  Section 910. The Illinois Income Tax Act is amended by
5  changing Sections 203 and 901 as follows:
6  (35 ILCS 5/203) (from Ch. 120, par. 2-203)
7  Sec. 203. Base income defined.
8  (a) Individuals.
9  (1) In general. In the case of an individual, base
10  income means an amount equal to the taxpayer's adjusted
11  gross income for the taxable year as modified by paragraph
12  (2).
13  (2) Modifications. The adjusted gross income referred
14  to in paragraph (1) shall be modified by adding thereto
15  the sum of the following amounts:
16  (A) An amount equal to all amounts paid or accrued
17  to the taxpayer as interest or dividends during the
18  taxable year to the extent excluded from gross income
19  in the computation of adjusted gross income, except
20  stock dividends of qualified public utilities
21  described in Section 305(e) of the Internal Revenue
22  Code;
23  (B) An amount equal to the amount of tax imposed by
24  this Act to the extent deducted from gross income in

 

 

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1  the computation of adjusted gross income for the
2  taxable year;
3  (C) An amount equal to the amount received during
4  the taxable year as a recovery or refund of real
5  property taxes paid with respect to the taxpayer's
6  principal residence under the Revenue Act of 1939 and
7  for which a deduction was previously taken under
8  subparagraph (L) of this paragraph (2) prior to July
9  1, 1991, the retrospective application date of Article
10  4 of Public Act 87-17. In the case of multi-unit or
11  multi-use structures and farm dwellings, the taxes on
12  the taxpayer's principal residence shall be that
13  portion of the total taxes for the entire property
14  which is attributable to such principal residence;
15  (D) An amount equal to the amount of the capital
16  gain deduction allowable under the Internal Revenue
17  Code, to the extent deducted from gross income in the
18  computation of adjusted gross income;
19  (D-5) An amount, to the extent not included in
20  adjusted gross income, equal to the amount of money
21  withdrawn by the taxpayer in the taxable year from a
22  medical care savings account and the interest earned
23  on the account in the taxable year of a withdrawal
24  pursuant to subsection (b) of Section 20 of the
25  Medical Care Savings Account Act or subsection (b) of
26  Section 20 of the Medical Care Savings Account Act of

 

 

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1  2000;
2  (D-10) For taxable years ending after December 31,
3  1997, an amount equal to any eligible remediation
4  costs that the individual deducted in computing
5  adjusted gross income and for which the individual
6  claims a credit under subsection (l) of Section 201;
7  (D-15) For taxable years 2001 and thereafter, an
8  amount equal to the bonus depreciation deduction taken
9  on the taxpayer's federal income tax return for the
10  taxable year under subsection (k) of Section 168 of
11  the Internal Revenue Code;
12  (D-16) If the taxpayer sells, transfers, abandons,
13  or otherwise disposes of property for which the
14  taxpayer was required in any taxable year to make an
15  addition modification under subparagraph (D-15), then
16  an amount equal to the aggregate amount of the
17  deductions taken in all taxable years under
18  subparagraph (Z) with respect to that property.
19  If the taxpayer continues to own property through
20  the last day of the last tax year for which a
21  subtraction is allowed with respect to that property
22  under subparagraph (Z) and for which the taxpayer was
23  allowed in any taxable year to make a subtraction
24  modification under subparagraph (Z), then an amount
25  equal to that subtraction modification.
26  The taxpayer is required to make the addition

 

 

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1  modification under this subparagraph only once with
2  respect to any one piece of property;
3  (D-17) An amount equal to the amount otherwise
4  allowed as a deduction in computing base income for
5  interest paid, accrued, or incurred, directly or
6  indirectly, (i) for taxable years ending on or after
7  December 31, 2004, to a foreign person who would be a
8  member of the same unitary business group but for the
9  fact that foreign person's business activity outside
10  the United States is 80% or more of the foreign
11  person's total business activity and (ii) for taxable
12  years ending on or after December 31, 2008, to a person
13  who would be a member of the same unitary business
14  group but for the fact that the person is prohibited
15  under Section 1501(a)(27) from being included in the
16  unitary business group because he or she is ordinarily
17  required to apportion business income under different
18  subsections of Section 304. The addition modification
19  required by this subparagraph shall be reduced to the
20  extent that dividends were included in base income of
21  the unitary group for the same taxable year and
22  received by the taxpayer or by a member of the
23  taxpayer's unitary business group (including amounts
24  included in gross income under Sections 951 through
25  964 of the Internal Revenue Code and amounts included
26  in gross income under Section 78 of the Internal

 

 

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1  Revenue Code) with respect to the stock of the same
2  person to whom the interest was paid, accrued, or
3  incurred.
4  This paragraph shall not apply to the following:
5  (i) an item of interest paid, accrued, or
6  incurred, directly or indirectly, to a person who
7  is subject in a foreign country or state, other
8  than a state which requires mandatory unitary
9  reporting, to a tax on or measured by net income
10  with respect to such interest; or
11  (ii) an item of interest paid, accrued, or
12  incurred, directly or indirectly, to a person if
13  the taxpayer can establish, based on a
14  preponderance of the evidence, both of the
15  following:
16  (a) the person, during the same taxable
17  year, paid, accrued, or incurred, the interest
18  to a person that is not a related member, and
19  (b) the transaction giving rise to the
20  interest expense between the taxpayer and the
21  person did not have as a principal purpose the
22  avoidance of Illinois income tax, and is paid
23  pursuant to a contract or agreement that
24  reflects an arm's-length interest rate and
25  terms; or
26  (iii) the taxpayer can establish, based on

 

 

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1  clear and convincing evidence, that the interest
2  paid, accrued, or incurred relates to a contract
3  or agreement entered into at arm's-length rates
4  and terms and the principal purpose for the
5  payment is not federal or Illinois tax avoidance;
6  or
7  (iv) an item of interest paid, accrued, or
8  incurred, directly or indirectly, to a person if
9  the taxpayer establishes by clear and convincing
10  evidence that the adjustments are unreasonable; or
11  if the taxpayer and the Director agree in writing
12  to the application or use of an alternative method
13  of apportionment under Section 304(f).
14  Nothing in this subsection shall preclude the
15  Director from making any other adjustment
16  otherwise allowed under Section 404 of this Act
17  for any tax year beginning after the effective
18  date of this amendment provided such adjustment is
19  made pursuant to regulation adopted by the
20  Department and such regulations provide methods
21  and standards by which the Department will utilize
22  its authority under Section 404 of this Act;
23  (D-18) An amount equal to the amount of intangible
24  expenses and costs otherwise allowed as a deduction in
25  computing base income, and that were paid, accrued, or
26  incurred, directly or indirectly, (i) for taxable

 

 

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1  years ending on or after December 31, 2004, to a
2  foreign person who would be a member of the same
3  unitary business group but for the fact that the
4  foreign person's business activity outside the United
5  States is 80% or more of that person's total business
6  activity and (ii) for taxable years ending on or after
7  December 31, 2008, to a person who would be a member of
8  the same unitary business group but for the fact that
9  the person is prohibited under Section 1501(a)(27)
10  from being included in the unitary business group
11  because he or she is ordinarily required to apportion
12  business income under different subsections of Section
13  304. The addition modification required by this
14  subparagraph shall be reduced to the extent that
15  dividends were included in base income of the unitary
16  group for the same taxable year and received by the
17  taxpayer or by a member of the taxpayer's unitary
18  business group (including amounts included in gross
19  income under Sections 951 through 964 of the Internal
20  Revenue Code and amounts included in gross income
21  under Section 78 of the Internal Revenue Code) with
22  respect to the stock of the same person to whom the
23  intangible expenses and costs were directly or
24  indirectly paid, incurred, or accrued. The preceding
25  sentence does not apply to the extent that the same
26  dividends caused a reduction to the addition

 

 

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1  modification required under Section 203(a)(2)(D-17) of
2  this Act. As used in this subparagraph, the term
3  "intangible expenses and costs" includes (1) expenses,
4  losses, and costs for, or related to, the direct or
5  indirect acquisition, use, maintenance or management,
6  ownership, sale, exchange, or any other disposition of
7  intangible property; (2) losses incurred, directly or
8  indirectly, from factoring transactions or discounting
9  transactions; (3) royalty, patent, technical, and
10  copyright fees; (4) licensing fees; and (5) other
11  similar expenses and costs. For purposes of this
12  subparagraph, "intangible property" includes patents,
13  patent applications, trade names, trademarks, service
14  marks, copyrights, mask works, trade secrets, and
15  similar types of intangible assets.
16  This paragraph shall not apply to the following:
17  (i) any item of intangible expenses or costs
18  paid, accrued, or incurred, directly or
19  indirectly, from a transaction with a person who
20  is subject in a foreign country or state, other
21  than a state which requires mandatory unitary
22  reporting, to a tax on or measured by net income
23  with respect to such item; or
24  (ii) any item of intangible expense or cost
25  paid, accrued, or incurred, directly or
26  indirectly, if the taxpayer can establish, based

 

 

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1  on a preponderance of the evidence, both of the
2  following:
3  (a) the person during the same taxable
4  year paid, accrued, or incurred, the
5  intangible expense or cost to a person that is
6  not a related member, and
7  (b) the transaction giving rise to the
8  intangible expense or cost between the
9  taxpayer and the person did not have as a
10  principal purpose the avoidance of Illinois
11  income tax, and is paid pursuant to a contract
12  or agreement that reflects arm's-length terms;
13  or
14  (iii) any item of intangible expense or cost
15  paid, accrued, or incurred, directly or
16  indirectly, from a transaction with a person if
17  the taxpayer establishes by clear and convincing
18  evidence, that the adjustments are unreasonable;
19  or if the taxpayer and the Director agree in
20  writing to the application or use of an
21  alternative method of apportionment under Section
22  304(f);
23  Nothing in this subsection shall preclude the
24  Director from making any other adjustment
25  otherwise allowed under Section 404 of this Act
26  for any tax year beginning after the effective

 

 

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1  date of this amendment provided such adjustment is
2  made pursuant to regulation adopted by the
3  Department and such regulations provide methods
4  and standards by which the Department will utilize
5  its authority under Section 404 of this Act;
6  (D-19) For taxable years ending on or after
7  December 31, 2008, an amount equal to the amount of
8  insurance premium expenses and costs otherwise allowed
9  as a deduction in computing base income, and that were
10  paid, accrued, or incurred, directly or indirectly, to
11  a person who would be a member of the same unitary
12  business group but for the fact that the person is
13  prohibited under Section 1501(a)(27) from being
14  included in the unitary business group because he or
15  she is ordinarily required to apportion business
16  income under different subsections of Section 304. The
17  addition modification required by this subparagraph
18  shall be reduced to the extent that dividends were
19  included in base income of the unitary group for the
20  same taxable year and received by the taxpayer or by a
21  member of the taxpayer's unitary business group
22  (including amounts included in gross income under
23  Sections 951 through 964 of the Internal Revenue Code
24  and amounts included in gross income under Section 78
25  of the Internal Revenue Code) with respect to the
26  stock of the same person to whom the premiums and costs

 

 

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1  were directly or indirectly paid, incurred, or
2  accrued. The preceding sentence does not apply to the
3  extent that the same dividends caused a reduction to
4  the addition modification required under Section
5  203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
6  Act;
7  (D-20) For taxable years beginning on or after
8  January 1, 2002 and ending on or before December 31,
9  2006, in the case of a distribution from a qualified
10  tuition program under Section 529 of the Internal
11  Revenue Code, other than (i) a distribution from a
12  College Savings Pool created under Section 16.5 of the
13  State Treasurer Act or (ii) a distribution from the
14  Illinois Prepaid Tuition Trust Fund, an amount equal
15  to the amount excluded from gross income under Section
16  529(c)(3)(B). For taxable years beginning on or after
17  January 1, 2007, in the case of a distribution from a
18  qualified tuition program under Section 529 of the
19  Internal Revenue Code, other than (i) a distribution
20  from a College Savings Pool created under Section 16.5
21  of the State Treasurer Act, (ii) a distribution from
22  the Illinois Prepaid Tuition Trust Fund, or (iii) a
23  distribution from a qualified tuition program under
24  Section 529 of the Internal Revenue Code that (I)
25  adopts and determines that its offering materials
26  comply with the College Savings Plans Network's

 

 

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1  disclosure principles and (II) has made reasonable
2  efforts to inform in-state residents of the existence
3  of in-state qualified tuition programs by informing
4  Illinois residents directly and, where applicable, to
5  inform financial intermediaries distributing the
6  program to inform in-state residents of the existence
7  of in-state qualified tuition programs at least
8  annually, an amount equal to the amount excluded from
9  gross income under Section 529(c)(3)(B).
10  For the purposes of this subparagraph (D-20), a
11  qualified tuition program has made reasonable efforts
12  if it makes disclosures (which may use the term
13  "in-state program" or "in-state plan" and need not
14  specifically refer to Illinois or its qualified
15  programs by name) (i) directly to prospective
16  participants in its offering materials or makes a
17  public disclosure, such as a website posting; and (ii)
18  where applicable, to intermediaries selling the
19  out-of-state program in the same manner that the
20  out-of-state program distributes its offering
21  materials;
22  (D-20.5) For taxable years beginning on or after
23  January 1, 2018, in the case of a distribution from a
24  qualified ABLE program under Section 529A of the
25  Internal Revenue Code, other than a distribution from
26  a qualified ABLE program created under Section 16.6 of

 

 

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1  the State Treasurer Act, an amount equal to the amount
2  excluded from gross income under Section 529A(c)(1)(B)
3  of the Internal Revenue Code;
4  (D-21) For taxable years beginning on or after
5  January 1, 2007, in the case of transfer of moneys from
6  a qualified tuition program under Section 529 of the
7  Internal Revenue Code that is administered by the
8  State to an out-of-state program, an amount equal to
9  the amount of moneys previously deducted from base
10  income under subsection (a)(2)(Y) of this Section;
11  (D-21.5) For taxable years beginning on or after
12  January 1, 2018, in the case of the transfer of moneys
13  from a qualified tuition program under Section 529 or
14  a qualified ABLE program under Section 529A of the
15  Internal Revenue Code that is administered by this
16  State to an ABLE account established under an
17  out-of-state ABLE account program, an amount equal to
18  the contribution component of the transferred amount
19  that was previously deducted from base income under
20  subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
21  Section;
22  (D-22) For taxable years beginning on or after
23  January 1, 2009, and prior to January 1, 2018, in the
24  case of a nonqualified withdrawal or refund of moneys
25  from a qualified tuition program under Section 529 of
26  the Internal Revenue Code administered by the State

 

 

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1  that is not used for qualified expenses at an eligible
2  education institution, an amount equal to the
3  contribution component of the nonqualified withdrawal
4  or refund that was previously deducted from base
5  income under subsection (a)(2)(y) of this Section,
6  provided that the withdrawal or refund did not result
7  from the beneficiary's death or disability. For
8  taxable years beginning on or after January 1, 2018:
9  (1) in the case of a nonqualified withdrawal or
10  refund, as defined under Section 16.5 of the State
11  Treasurer Act, of moneys from a qualified tuition
12  program under Section 529 of the Internal Revenue Code
13  administered by the State, an amount equal to the
14  contribution component of the nonqualified withdrawal
15  or refund that was previously deducted from base
16  income under subsection (a)(2)(Y) of this Section, and
17  (2) in the case of a nonqualified withdrawal or refund
18  from a qualified ABLE program under Section 529A of
19  the Internal Revenue Code administered by the State
20  that is not used for qualified disability expenses, an
21  amount equal to the contribution component of the
22  nonqualified withdrawal or refund that was previously
23  deducted from base income under subsection (a)(2)(HH)
24  of this Section;
25  (D-23) An amount equal to the credit allowable to
26  the taxpayer under Section 218(a) of this Act,

 

 

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1  determined without regard to Section 218(c) of this
2  Act;
3  (D-24) For taxable years ending on or after
4  December 31, 2017, an amount equal to the deduction
5  allowed under Section 199 of the Internal Revenue Code
6  for the taxable year;
7  (D-25) In the case of a resident, an amount equal
8  to the amount of tax for which a credit is allowed
9  pursuant to Section 201(p)(7) of this Act;
10  (D-26) The amount recognized as a net gain for the
11  taxable year under the Extremely High Wealth
12  Mark-to-Market Tax Act.
13  and by deducting from the total so obtained the sum of the
14  following amounts:
15  (E) For taxable years ending before December 31,
16  2001, any amount included in such total in respect of
17  any compensation (including but not limited to any
18  compensation paid or accrued to a serviceman while a
19  prisoner of war or missing in action) paid to a
20  resident by reason of being on active duty in the Armed
21  Forces of the United States and in respect of any
22  compensation paid or accrued to a resident who as a
23  governmental employee was a prisoner of war or missing
24  in action, and in respect of any compensation paid to a
25  resident in 1971 or thereafter for annual training
26  performed pursuant to Sections 502 and 503, Title 32,

 

 

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1  United States Code as a member of the Illinois
2  National Guard or, beginning with taxable years ending
3  on or after December 31, 2007, the National Guard of
4  any other state. For taxable years ending on or after
5  December 31, 2001, any amount included in such total
6  in respect of any compensation (including but not
7  limited to any compensation paid or accrued to a
8  serviceman while a prisoner of war or missing in
9  action) paid to a resident by reason of being a member
10  of any component of the Armed Forces of the United
11  States and in respect of any compensation paid or
12  accrued to a resident who as a governmental employee
13  was a prisoner of war or missing in action, and in
14  respect of any compensation paid to a resident in 2001
15  or thereafter by reason of being a member of the
16  Illinois National Guard or, beginning with taxable
17  years ending on or after December 31, 2007, the
18  National Guard of any other state. The provisions of
19  this subparagraph (E) are exempt from the provisions
20  of Section 250;
21  (F) An amount equal to all amounts included in
22  such total pursuant to the provisions of Sections
23  402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
24  408 of the Internal Revenue Code, or included in such
25  total as distributions under the provisions of any
26  retirement or disability plan for employees of any

 

 

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1  governmental agency or unit, or retirement payments to
2  retired partners, which payments are excluded in
3  computing net earnings from self employment by Section
4  1402 of the Internal Revenue Code and regulations
5  adopted pursuant thereto;
6  (G) The valuation limitation amount;
7  (H) An amount equal to the amount of any tax
8  imposed by this Act which was refunded to the taxpayer
9  and included in such total for the taxable year;
10  (I) An amount equal to all amounts included in
11  such total pursuant to the provisions of Section 111
12  of the Internal Revenue Code as a recovery of items
13  previously deducted from adjusted gross income in the
14  computation of taxable income;
15  (J) An amount equal to those dividends included in
16  such total which were paid by a corporation which
17  conducts business operations in a River Edge
18  Redevelopment Zone or zones created under the River
19  Edge Redevelopment Zone Act, and conducts
20  substantially all of its operations in a River Edge
21  Redevelopment Zone or zones. This subparagraph (J) is
22  exempt from the provisions of Section 250;
23  (K) An amount equal to those dividends included in
24  such total that were paid by a corporation that
25  conducts business operations in a federally designated
26  Foreign Trade Zone or Sub-Zone and that is designated

 

 

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1  a High Impact Business located in Illinois; provided
2  that dividends eligible for the deduction provided in
3  subparagraph (J) of paragraph (2) of this subsection
4  shall not be eligible for the deduction provided under
5  this subparagraph (K);
6  (L) For taxable years ending after December 31,
7  1983, an amount equal to all social security benefits
8  and railroad retirement benefits included in such
9  total pursuant to Sections 72(r) and 86 of the
10  Internal Revenue Code;
11  (M) With the exception of any amounts subtracted
12  under subparagraph (N), an amount equal to the sum of
13  all amounts disallowed as deductions by (i) Sections
14  171(a)(2) and 265(a)(2) of the Internal Revenue Code,
15  and all amounts of expenses allocable to interest and
16  disallowed as deductions by Section 265(a)(1) of the
17  Internal Revenue Code; and (ii) for taxable years
18  ending on or after August 13, 1999, Sections
19  171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
20  Internal Revenue Code, plus, for taxable years ending
21  on or after December 31, 2011, Section 45G(e)(3) of
22  the Internal Revenue Code and, for taxable years
23  ending on or after December 31, 2008, any amount
24  included in gross income under Section 87 of the
25  Internal Revenue Code; the provisions of this
26  subparagraph are exempt from the provisions of Section

 

 

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1  250;
2  (N) An amount equal to all amounts included in
3  such total which are exempt from taxation by this
4  State either by reason of its statutes or Constitution
5  or by reason of the Constitution, treaties or statutes
6  of the United States; provided that, in the case of any
7  statute of this State that exempts income derived from
8  bonds or other obligations from the tax imposed under
9  this Act, the amount exempted shall be the interest
10  net of bond premium amortization;
11  (O) An amount equal to any contribution made to a
12  job training project established pursuant to the Tax
13  Increment Allocation Redevelopment Act;
14  (P) An amount equal to the amount of the deduction
15  used to compute the federal income tax credit for
16  restoration of substantial amounts held under claim of
17  right for the taxable year pursuant to Section 1341 of
18  the Internal Revenue Code or of any itemized deduction
19  taken from adjusted gross income in the computation of
20  taxable income for restoration of substantial amounts
21  held under claim of right for the taxable year;
22  (Q) An amount equal to any amounts included in
23  such total, received by the taxpayer as an
24  acceleration in the payment of life, endowment or
25  annuity benefits in advance of the time they would
26  otherwise be payable as an indemnity for a terminal

 

 

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1  illness;
2  (R) An amount equal to the amount of any federal or
3  State bonus paid to veterans of the Persian Gulf War;
4  (S) An amount, to the extent included in adjusted
5  gross income, equal to the amount of a contribution
6  made in the taxable year on behalf of the taxpayer to a
7  medical care savings account established under the
8  Medical Care Savings Account Act or the Medical Care
9  Savings Account Act of 2000 to the extent the
10  contribution is accepted by the account administrator
11  as provided in that Act;
12  (T) An amount, to the extent included in adjusted
13  gross income, equal to the amount of interest earned
14  in the taxable year on a medical care savings account
15  established under the Medical Care Savings Account Act
16  or the Medical Care Savings Account Act of 2000 on
17  behalf of the taxpayer, other than interest added
18  pursuant to item (D-5) of this paragraph (2);
19  (U) For one taxable year beginning on or after
20  January 1, 1994, an amount equal to the total amount of
21  tax imposed and paid under subsections (a) and (b) of
22  Section 201 of this Act on grant amounts received by
23  the taxpayer under the Nursing Home Grant Assistance
24  Act during the taxpayer's taxable years 1992 and 1993;
25  (V) Beginning with tax years ending on or after
26  December 31, 1995 and ending with tax years ending on

 

 

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1  or before December 31, 2004, an amount equal to the
2  amount paid by a taxpayer who is a self-employed
3  taxpayer, a partner of a partnership, or a shareholder
4  in a Subchapter S corporation for health insurance or
5  long-term care insurance for that taxpayer or that
6  taxpayer's spouse or dependents, to the extent that
7  the amount paid for that health insurance or long-term
8  care insurance may be deducted under Section 213 of
9  the Internal Revenue Code, has not been deducted on
10  the federal income tax return of the taxpayer, and
11  does not exceed the taxable income attributable to
12  that taxpayer's income, self-employment income, or
13  Subchapter S corporation income; except that no
14  deduction shall be allowed under this item (V) if the
15  taxpayer is eligible to participate in any health
16  insurance or long-term care insurance plan of an
17  employer of the taxpayer or the taxpayer's spouse. The
18  amount of the health insurance and long-term care
19  insurance subtracted under this item (V) shall be
20  determined by multiplying total health insurance and
21  long-term care insurance premiums paid by the taxpayer
22  times a number that represents the fractional
23  percentage of eligible medical expenses under Section
24  213 of the Internal Revenue Code of 1986 not actually
25  deducted on the taxpayer's federal income tax return;
26  (W) For taxable years beginning on or after

 

 

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1  January 1, 1998, all amounts included in the
2  taxpayer's federal gross income in the taxable year
3  from amounts converted from a regular IRA to a Roth
4  IRA. This paragraph is exempt from the provisions of
5  Section 250;
6  (X) For taxable year 1999 and thereafter, an
7  amount equal to the amount of any (i) distributions,
8  to the extent includible in gross income for federal
9  income tax purposes, made to the taxpayer because of
10  his or her status as a victim of persecution for racial
11  or religious reasons by Nazi Germany or any other Axis
12  regime or as an heir of the victim and (ii) items of
13  income, to the extent includible in gross income for
14  federal income tax purposes, attributable to, derived
15  from or in any way related to assets stolen from,
16  hidden from, or otherwise lost to a victim of
17  persecution for racial or religious reasons by Nazi
18  Germany or any other Axis regime immediately prior to,
19  during, and immediately after World War II, including,
20  but not limited to, interest on the proceeds
21  receivable as insurance under policies issued to a
22  victim of persecution for racial or religious reasons
23  by Nazi Germany or any other Axis regime by European
24  insurance companies immediately prior to and during
25  World War II; provided, however, this subtraction from
26  federal adjusted gross income does not apply to assets

 

 

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1  acquired with such assets or with the proceeds from
2  the sale of such assets; provided, further, this
3  paragraph shall only apply to a taxpayer who was the
4  first recipient of such assets after their recovery
5  and who is a victim of persecution for racial or
6  religious reasons by Nazi Germany or any other Axis
7  regime or as an heir of the victim. The amount of and
8  the eligibility for any public assistance, benefit, or
9  similar entitlement is not affected by the inclusion
10  of items (i) and (ii) of this paragraph in gross income
11  for federal income tax purposes. This paragraph is
12  exempt from the provisions of Section 250;
13  (Y) For taxable years beginning on or after
14  January 1, 2002 and ending on or before December 31,
15  2004, moneys contributed in the taxable year to a
16  College Savings Pool account under Section 16.5 of the
17  State Treasurer Act, except that amounts excluded from
18  gross income under Section 529(c)(3)(C)(i) of the
19  Internal Revenue Code shall not be considered moneys
20  contributed under this subparagraph (Y). For taxable
21  years beginning on or after January 1, 2005, a maximum
22  of $10,000 contributed in the taxable year to (i) a
23  College Savings Pool account under Section 16.5 of the
24  State Treasurer Act or (ii) the Illinois Prepaid
25  Tuition Trust Fund, except that amounts excluded from
26  gross income under Section 529(c)(3)(C)(i) of the

 

 

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1  Internal Revenue Code shall not be considered moneys
2  contributed under this subparagraph (Y). For purposes
3  of this subparagraph, contributions made by an
4  employer on behalf of an employee, or matching
5  contributions made by an employee, shall be treated as
6  made by the employee. This subparagraph (Y) is exempt
7  from the provisions of Section 250;
8  (Z) For taxable years 2001 and thereafter, for the
9  taxable year in which the bonus depreciation deduction
10  is taken on the taxpayer's federal income tax return
11  under subsection (k) of Section 168 of the Internal
12  Revenue Code and for each applicable taxable year
13  thereafter, an amount equal to "x", where:
14  (1) "y" equals the amount of the depreciation
15  deduction taken for the taxable year on the
16  taxpayer's federal income tax return on property
17  for which the bonus depreciation deduction was
18  taken in any year under subsection (k) of Section
19  168 of the Internal Revenue Code, but not
20  including the bonus depreciation deduction;
21  (2) for taxable years ending on or before
22  December 31, 2005, "x" equals "y" multiplied by 30
23  and then divided by 70 (or "y" multiplied by
24  0.429); and
25  (3) for taxable years ending after December
26  31, 2005:

 

 

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1  (i) for property on which a bonus
2  depreciation deduction of 30% of the adjusted
3  basis was taken, "x" equals "y" multiplied by
4  30 and then divided by 70 (or "y" multiplied
5  by 0.429);
6  (ii) for property on which a bonus
7  depreciation deduction of 50% of the adjusted
8  basis was taken, "x" equals "y" multiplied by
9  1.0;
10  (iii) for property on which a bonus
11  depreciation deduction of 100% of the adjusted
12  basis was taken in a taxable year ending on or
13  after December 31, 2021, "x" equals the
14  depreciation deduction that would be allowed
15  on that property if the taxpayer had made the
16  election under Section 168(k)(7) of the
17  Internal Revenue Code to not claim bonus
18  depreciation on that property; and
19  (iv) for property on which a bonus
20  depreciation deduction of a percentage other
21  than 30%, 50% or 100% of the adjusted basis
22  was taken in a taxable year ending on or after
23  December 31, 2021, "x" equals "y" multiplied
24  by 100 times the percentage bonus depreciation
25  on the property (that is, 100(bonus%)) and
26  then divided by 100 times 1 minus the

 

 

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1  percentage bonus depreciation on the property
2  (that is, 100(1bonus%)).
3  The aggregate amount deducted under this
4  subparagraph in all taxable years for any one piece of
5  property may not exceed the amount of the bonus
6  depreciation deduction taken on that property on the
7  taxpayer's federal income tax return under subsection
8  (k) of Section 168 of the Internal Revenue Code. This
9  subparagraph (Z) is exempt from the provisions of
10  Section 250;
11  (AA) If the taxpayer sells, transfers, abandons,
12  or otherwise disposes of property for which the
13  taxpayer was required in any taxable year to make an
14  addition modification under subparagraph (D-15), then
15  an amount equal to that addition modification.
16  If the taxpayer continues to own property through
17  the last day of the last tax year for which a
18  subtraction is allowed with respect to that property
19  under subparagraph (Z) and for which the taxpayer was
20  required in any taxable year to make an addition
21  modification under subparagraph (D-15), then an amount
22  equal to that addition modification.
23  The taxpayer is allowed to take the deduction
24  under this subparagraph only once with respect to any
25  one piece of property.
26  This subparagraph (AA) is exempt from the

 

 

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1  provisions of Section 250;
2  (BB) Any amount included in adjusted gross income,
3  other than salary, received by a driver in a
4  ridesharing arrangement using a motor vehicle;
5  (CC) The amount of (i) any interest income (net of
6  the deductions allocable thereto) taken into account
7  for the taxable year with respect to a transaction
8  with a taxpayer that is required to make an addition
9  modification with respect to such transaction under
10  Section 203(a)(2)(D-17), 203(b)(2)(E-12),
11  203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
12  the amount of that addition modification, and (ii) any
13  income from intangible property (net of the deductions
14  allocable thereto) taken into account for the taxable
15  year with respect to a transaction with a taxpayer
16  that is required to make an addition modification with
17  respect to such transaction under Section
18  203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
19  203(d)(2)(D-8), but not to exceed the amount of that
20  addition modification. This subparagraph (CC) is
21  exempt from the provisions of Section 250;
22  (DD) An amount equal to the interest income taken
23  into account for the taxable year (net of the
24  deductions allocable thereto) with respect to
25  transactions with (i) a foreign person who would be a
26  member of the taxpayer's unitary business group but

 

 

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1  for the fact that the foreign person's business
2  activity outside the United States is 80% or more of
3  that person's total business activity and (ii) for
4  taxable years ending on or after December 31, 2008, to
5  a person who would be a member of the same unitary
6  business group but for the fact that the person is
7  prohibited under Section 1501(a)(27) from being
8  included in the unitary business group because he or
9  she is ordinarily required to apportion business
10  income under different subsections of Section 304, but
11  not to exceed the addition modification required to be
12  made for the same taxable year under Section
13  203(a)(2)(D-17) for interest paid, accrued, or
14  incurred, directly or indirectly, to the same person.
15  This subparagraph (DD) is exempt from the provisions
16  of Section 250;
17  (EE) An amount equal to the income from intangible
18  property taken into account for the taxable year (net
19  of the deductions allocable thereto) with respect to
20  transactions with (i) a foreign person who would be a
21  member of the taxpayer's unitary business group but
22  for the fact that the foreign person's business
23  activity outside the United States is 80% or more of
24  that person's total business activity and (ii) for
25  taxable years ending on or after December 31, 2008, to
26  a person who would be a member of the same unitary

 

 

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1  business group but for the fact that the person is
2  prohibited under Section 1501(a)(27) from being
3  included in the unitary business group because he or
4  she is ordinarily required to apportion business
5  income under different subsections of Section 304, but
6  not to exceed the addition modification required to be
7  made for the same taxable year under Section
8  203(a)(2)(D-18) for intangible expenses and costs
9  paid, accrued, or incurred, directly or indirectly, to
10  the same foreign person. This subparagraph (EE) is
11  exempt from the provisions of Section 250;
12  (FF) An amount equal to any amount awarded to the
13  taxpayer during the taxable year by the Court of
14  Claims under subsection (c) of Section 8 of the Court
15  of Claims Act for time unjustly served in a State
16  prison. This subparagraph (FF) is exempt from the
17  provisions of Section 250;
18  (GG) For taxable years ending on or after December
19  31, 2011, in the case of a taxpayer who was required to
20  add back any insurance premiums under Section
21  203(a)(2)(D-19), such taxpayer may elect to subtract
22  that part of a reimbursement received from the
23  insurance company equal to the amount of the expense
24  or loss (including expenses incurred by the insurance
25  company) that would have been taken into account as a
26  deduction for federal income tax purposes if the

 

 

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1  expense or loss had been uninsured. If a taxpayer
2  makes the election provided for by this subparagraph
3  (GG), the insurer to which the premiums were paid must
4  add back to income the amount subtracted by the
5  taxpayer pursuant to this subparagraph (GG). This
6  subparagraph (GG) is exempt from the provisions of
7  Section 250;
8  (HH) For taxable years beginning on or after
9  January 1, 2018 and prior to January 1, 2028, a maximum
10  of $10,000 contributed in the taxable year to a
11  qualified ABLE account under Section 16.6 of the State
12  Treasurer Act, except that amounts excluded from gross
13  income under Section 529(c)(3)(C)(i) or Section
14  529A(c)(1)(C) of the Internal Revenue Code shall not
15  be considered moneys contributed under this
16  subparagraph (HH). For purposes of this subparagraph
17  (HH), contributions made by an employer on behalf of
18  an employee, or matching contributions made by an
19  employee, shall be treated as made by the employee;
20  and
21  (II) For taxable years that begin on or after
22  January 1, 2021 and begin before January 1, 2026, the
23  amount that is included in the taxpayer's federal
24  adjusted gross income pursuant to Section 61 of the
25  Internal Revenue Code as discharge of indebtedness
26  attributable to student loan forgiveness and that is

 

 

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1  not excluded from the taxpayer's federal adjusted
2  gross income pursuant to paragraph (5) of subsection
3  (f) of Section 108 of the Internal Revenue Code; and .
4  (JJ) An amount eligible to be taken as a loss in
5  the taxable year under the Extremely High Wealth
6  Mark-to-Market Tax Act that is no otherwise deducted
7  under this Act.
8  (b) Corporations.
9  (1) In general. In the case of a corporation, base
10  income means an amount equal to the taxpayer's taxable
11  income for the taxable year as modified by paragraph (2).
12  (2) Modifications. The taxable income referred to in
13  paragraph (1) shall be modified by adding thereto the sum
14  of the following amounts:
15  (A) An amount equal to all amounts paid or accrued
16  to the taxpayer as interest and all distributions
17  received from regulated investment companies during
18  the taxable year to the extent excluded from gross
19  income in the computation of taxable income;
20  (B) An amount equal to the amount of tax imposed by
21  this Act to the extent deducted from gross income in
22  the computation of taxable income for the taxable
23  year;
24  (C) In the case of a regulated investment company,
25  an amount equal to the excess of (i) the net long-term

 

 

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1  capital gain for the taxable year, over (ii) the
2  amount of the capital gain dividends designated as
3  such in accordance with Section 852(b)(3)(C) of the
4  Internal Revenue Code and any amount designated under
5  Section 852(b)(3)(D) of the Internal Revenue Code,
6  attributable to the taxable year (this amendatory Act
7  of 1995 (Public Act 89-89) is declarative of existing
8  law and is not a new enactment);
9  (D) The amount of any net operating loss deduction
10  taken in arriving at taxable income, other than a net
11  operating loss carried forward from a taxable year
12  ending prior to December 31, 1986;
13  (E) For taxable years in which a net operating
14  loss carryback or carryforward from a taxable year
15  ending prior to December 31, 1986 is an element of
16  taxable income under paragraph (1) of subsection (e)
17  or subparagraph (E) of paragraph (2) of subsection
18  (e), the amount by which addition modifications other
19  than those provided by this subparagraph (E) exceeded
20  subtraction modifications in such earlier taxable
21  year, with the following limitations applied in the
22  order that they are listed:
23  (i) the addition modification relating to the
24  net operating loss carried back or forward to the
25  taxable year from any taxable year ending prior to
26  December 31, 1986 shall be reduced by the amount

 

 

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1  of addition modification under this subparagraph
2  (E) which related to that net operating loss and
3  which was taken into account in calculating the
4  base income of an earlier taxable year, and
5  (ii) the addition modification relating to the
6  net operating loss carried back or forward to the
7  taxable year from any taxable year ending prior to
8  December 31, 1986 shall not exceed the amount of
9  such carryback or carryforward;
10  For taxable years in which there is a net
11  operating loss carryback or carryforward from more
12  than one other taxable year ending prior to December
13  31, 1986, the addition modification provided in this
14  subparagraph (E) shall be the sum of the amounts
15  computed independently under the preceding provisions
16  of this subparagraph (E) for each such taxable year;
17  (E-5) For taxable years ending after December 31,
18  1997, an amount equal to any eligible remediation
19  costs that the corporation deducted in computing
20  adjusted gross income and for which the corporation
21  claims a credit under subsection (l) of Section 201;
22  (E-10) For taxable years 2001 and thereafter, an
23  amount equal to the bonus depreciation deduction taken
24  on the taxpayer's federal income tax return for the
25  taxable year under subsection (k) of Section 168 of
26  the Internal Revenue Code;

 

 

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1  (E-11) If the taxpayer sells, transfers, abandons,
2  or otherwise disposes of property for which the
3  taxpayer was required in any taxable year to make an
4  addition modification under subparagraph (E-10), then
5  an amount equal to the aggregate amount of the
6  deductions taken in all taxable years under
7  subparagraph (T) with respect to that property.
8  If the taxpayer continues to own property through
9  the last day of the last tax year for which a
10  subtraction is allowed with respect to that property
11  under subparagraph (T) and for which the taxpayer was
12  allowed in any taxable year to make a subtraction
13  modification under subparagraph (T), then an amount
14  equal to that subtraction modification.
15  The taxpayer is required to make the addition
16  modification under this subparagraph only once with
17  respect to any one piece of property;
18  (E-12) An amount equal to the amount otherwise
19  allowed as a deduction in computing base income for
20  interest paid, accrued, or incurred, directly or
21  indirectly, (i) for taxable years ending on or after
22  December 31, 2004, to a foreign person who would be a
23  member of the same unitary business group but for the
24  fact the foreign person's business activity outside
25  the United States is 80% or more of the foreign
26  person's total business activity and (ii) for taxable

 

 

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1  years ending on or after December 31, 2008, to a person
2  who would be a member of the same unitary business
3  group but for the fact that the person is prohibited
4  under Section 1501(a)(27) from being included in the
5  unitary business group because he or she is ordinarily
6  required to apportion business income under different
7  subsections of Section 304. The addition modification
8  required by this subparagraph shall be reduced to the
9  extent that dividends were included in base income of
10  the unitary group for the same taxable year and
11  received by the taxpayer or by a member of the
12  taxpayer's unitary business group (including amounts
13  included in gross income pursuant to Sections 951
14  through 964 of the Internal Revenue Code and amounts
15  included in gross income under Section 78 of the
16  Internal Revenue Code) with respect to the stock of
17  the same person to whom the interest was paid,
18  accrued, or incurred.
19  This paragraph shall not apply to the following:
20  (i) an item of interest paid, accrued, or
21  incurred, directly or indirectly, to a person who
22  is subject in a foreign country or state, other
23  than a state which requires mandatory unitary
24  reporting, to a tax on or measured by net income
25  with respect to such interest; or
26  (ii) an item of interest paid, accrued, or

 

 

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1  incurred, directly or indirectly, to a person if
2  the taxpayer can establish, based on a
3  preponderance of the evidence, both of the
4  following:
5  (a) the person, during the same taxable
6  year, paid, accrued, or incurred, the interest
7  to a person that is not a related member, and
8  (b) the transaction giving rise to the
9  interest expense between the taxpayer and the
10  person did not have as a principal purpose the
11  avoidance of Illinois income tax, and is paid
12  pursuant to a contract or agreement that
13  reflects an arm's-length interest rate and
14  terms; or
15  (iii) the taxpayer can establish, based on
16  clear and convincing evidence, that the interest
17  paid, accrued, or incurred relates to a contract
18  or agreement entered into at arm's-length rates
19  and terms and the principal purpose for the
20  payment is not federal or Illinois tax avoidance;
21  or
22  (iv) an item of interest paid, accrued, or
23  incurred, directly or indirectly, to a person if
24  the taxpayer establishes by clear and convincing
25  evidence that the adjustments are unreasonable; or
26  if the taxpayer and the Director agree in writing

 

 

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1  to the application or use of an alternative method
2  of apportionment under Section 304(f).
3  Nothing in this subsection shall preclude the
4  Director from making any other adjustment
5  otherwise allowed under Section 404 of this Act
6  for any tax year beginning after the effective
7  date of this amendment provided such adjustment is
8  made pursuant to regulation adopted by the
9  Department and such regulations provide methods
10  and standards by which the Department will utilize
11  its authority under Section 404 of this Act;
12  (E-13) An amount equal to the amount of intangible
13  expenses and costs otherwise allowed as a deduction in
14  computing base income, and that were paid, accrued, or
15  incurred, directly or indirectly, (i) for taxable
16  years ending on or after December 31, 2004, to a
17  foreign person who would be a member of the same
18  unitary business group but for the fact that the
19  foreign person's business activity outside the United
20  States is 80% or more of that person's total business
21  activity and (ii) for taxable years ending on or after
22  December 31, 2008, to a person who would be a member of
23  the same unitary business group but for the fact that
24  the person is prohibited under Section 1501(a)(27)
25  from being included in the unitary business group
26  because he or she is ordinarily required to apportion

 

 

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1  business income under different subsections of Section
2  304. The addition modification required by this
3  subparagraph shall be reduced to the extent that
4  dividends were included in base income of the unitary
5  group for the same taxable year and received by the
6  taxpayer or by a member of the taxpayer's unitary
7  business group (including amounts included in gross
8  income pursuant to Sections 951 through 964 of the
9  Internal Revenue Code and amounts included in gross
10  income under Section 78 of the Internal Revenue Code)
11  with respect to the stock of the same person to whom
12  the intangible expenses and costs were directly or
13  indirectly paid, incurred, or accrued. The preceding
14  sentence shall not apply to the extent that the same
15  dividends caused a reduction to the addition
16  modification required under Section 203(b)(2)(E-12) of
17  this Act. As used in this subparagraph, the term
18  "intangible expenses and costs" includes (1) expenses,
19  losses, and costs for, or related to, the direct or
20  indirect acquisition, use, maintenance or management,
21  ownership, sale, exchange, or any other disposition of
22  intangible property; (2) losses incurred, directly or
23  indirectly, from factoring transactions or discounting
24  transactions; (3) royalty, patent, technical, and
25  copyright fees; (4) licensing fees; and (5) other
26  similar expenses and costs. For purposes of this

 

 

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1  subparagraph, "intangible property" includes patents,
2  patent applications, trade names, trademarks, service
3  marks, copyrights, mask works, trade secrets, and
4  similar types of intangible assets.
5  This paragraph shall not apply to the following:
6  (i) any item of intangible expenses or costs
7  paid, accrued, or incurred, directly or
8  indirectly, from a transaction with a person who
9  is subject in a foreign country or state, other
10  than a state which requires mandatory unitary
11  reporting, to a tax on or measured by net income
12  with respect to such item; or
13  (ii) any item of intangible expense or cost
14  paid, accrued, or incurred, directly or
15  indirectly, if the taxpayer can establish, based
16  on a preponderance of the evidence, both of the
17  following:
18  (a) the person during the same taxable
19  year paid, accrued, or incurred, the
20  intangible expense or cost to a person that is
21  not a related member, and
22  (b) the transaction giving rise to the
23  intangible expense or cost between the
24  taxpayer and the person did not have as a
25  principal purpose the avoidance of Illinois
26  income tax, and is paid pursuant to a contract

 

 

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1  or agreement that reflects arm's-length terms;
2  or
3  (iii) any item of intangible expense or cost
4  paid, accrued, or incurred, directly or
5  indirectly, from a transaction with a person if
6  the taxpayer establishes by clear and convincing
7  evidence, that the adjustments are unreasonable;
8  or if the taxpayer and the Director agree in
9  writing to the application or use of an
10  alternative method of apportionment under Section
11  304(f);
12  Nothing in this subsection shall preclude the
13  Director from making any other adjustment
14  otherwise allowed under Section 404 of this Act
15  for any tax year beginning after the effective
16  date of this amendment provided such adjustment is
17  made pursuant to regulation adopted by the
18  Department and such regulations provide methods
19  and standards by which the Department will utilize
20  its authority under Section 404 of this Act;
21  (E-14) For taxable years ending on or after
22  December 31, 2008, an amount equal to the amount of
23  insurance premium expenses and costs otherwise allowed
24  as a deduction in computing base income, and that were
25  paid, accrued, or incurred, directly or indirectly, to
26  a person who would be a member of the same unitary

 

 

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1  business group but for the fact that the person is
2  prohibited under Section 1501(a)(27) from being
3  included in the unitary business group because he or
4  she is ordinarily required to apportion business
5  income under different subsections of Section 304. The
6  addition modification required by this subparagraph
7  shall be reduced to the extent that dividends were
8  included in base income of the unitary group for the
9  same taxable year and received by the taxpayer or by a
10  member of the taxpayer's unitary business group
11  (including amounts included in gross income under
12  Sections 951 through 964 of the Internal Revenue Code
13  and amounts included in gross income under Section 78
14  of the Internal Revenue Code) with respect to the
15  stock of the same person to whom the premiums and costs
16  were directly or indirectly paid, incurred, or
17  accrued. The preceding sentence does not apply to the
18  extent that the same dividends caused a reduction to
19  the addition modification required under Section
20  203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
21  Act;
22  (E-15) For taxable years beginning after December
23  31, 2008, any deduction for dividends paid by a
24  captive real estate investment trust that is allowed
25  to a real estate investment trust under Section
26  857(b)(2)(B) of the Internal Revenue Code for

 

 

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1  dividends paid;
2  (E-16) An amount equal to the credit allowable to
3  the taxpayer under Section 218(a) of this Act,
4  determined without regard to Section 218(c) of this
5  Act;
6  (E-17) For taxable years ending on or after
7  December 31, 2017, an amount equal to the deduction
8  allowed under Section 199 of the Internal Revenue Code
9  for the taxable year;
10  (E-18) for taxable years beginning after December
11  31, 2018, an amount equal to the deduction allowed
12  under Section 250(a)(1)(A) of the Internal Revenue
13  Code for the taxable year;
14  (E-19) for taxable years ending on or after June
15  30, 2021, an amount equal to the deduction allowed
16  under Section 250(a)(1)(B)(i) of the Internal Revenue
17  Code for the taxable year;
18  (E-20) for taxable years ending on or after June
19  30, 2021, an amount equal to the deduction allowed
20  under Sections 243(e) and 245A(a) of the Internal
21  Revenue Code for the taxable year.
22  and by deducting from the total so obtained the sum of the
23  following amounts:
24  (F) An amount equal to the amount of any tax
25  imposed by this Act which was refunded to the taxpayer
26  and included in such total for the taxable year;

 

 

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1  (G) An amount equal to any amount included in such
2  total under Section 78 of the Internal Revenue Code;
3  (H) In the case of a regulated investment company,
4  an amount equal to the amount of exempt interest
5  dividends as defined in subsection (b)(5) of Section
6  852 of the Internal Revenue Code, paid to shareholders
7  for the taxable year;
8  (I) With the exception of any amounts subtracted
9  under subparagraph (J), an amount equal to the sum of
10  all amounts disallowed as deductions by (i) Sections
11  171(a)(2) and 265(a)(2) and amounts disallowed as
12  interest expense by Section 291(a)(3) of the Internal
13  Revenue Code, and all amounts of expenses allocable to
14  interest and disallowed as deductions by Section
15  265(a)(1) of the Internal Revenue Code; and (ii) for
16  taxable years ending on or after August 13, 1999,
17  Sections 171(a)(2), 265, 280C, 291(a)(3), and
18  832(b)(5)(B)(i) of the Internal Revenue Code, plus,
19  for tax years ending on or after December 31, 2011,
20  amounts disallowed as deductions by Section 45G(e)(3)
21  of the Internal Revenue Code and, for taxable years
22  ending on or after December 31, 2008, any amount
23  included in gross income under Section 87 of the
24  Internal Revenue Code and the policyholders' share of
25  tax-exempt interest of a life insurance company under
26  Section 807(a)(2)(B) of the Internal Revenue Code (in

 

 

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1  the case of a life insurance company with gross income
2  from a decrease in reserves for the tax year) or
3  Section 807(b)(1)(B) of the Internal Revenue Code (in
4  the case of a life insurance company allowed a
5  deduction for an increase in reserves for the tax
6  year); the provisions of this subparagraph are exempt
7  from the provisions of Section 250;
8  (J) An amount equal to all amounts included in
9  such total which are exempt from taxation by this
10  State either by reason of its statutes or Constitution
11  or by reason of the Constitution, treaties or statutes
12  of the United States; provided that, in the case of any
13  statute of this State that exempts income derived from
14  bonds or other obligations from the tax imposed under
15  this Act, the amount exempted shall be the interest
16  net of bond premium amortization;
17  (K) An amount equal to those dividends included in
18  such total which were paid by a corporation which
19  conducts business operations in a River Edge
20  Redevelopment Zone or zones created under the River
21  Edge Redevelopment Zone Act and conducts substantially
22  all of its operations in a River Edge Redevelopment
23  Zone or zones. This subparagraph (K) is exempt from
24  the provisions of Section 250;
25  (L) An amount equal to those dividends included in
26  such total that were paid by a corporation that

 

 

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1  conducts business operations in a federally designated
2  Foreign Trade Zone or Sub-Zone and that is designated
3  a High Impact Business located in Illinois; provided
4  that dividends eligible for the deduction provided in
5  subparagraph (K) of paragraph 2 of this subsection
6  shall not be eligible for the deduction provided under
7  this subparagraph (L);
8  (M) For any taxpayer that is a financial
9  organization within the meaning of Section 304(c) of
10  this Act, an amount included in such total as interest
11  income from a loan or loans made by such taxpayer to a
12  borrower, to the extent that such a loan is secured by
13  property which is eligible for the River Edge
14  Redevelopment Zone Investment Credit. To determine the
15  portion of a loan or loans that is secured by property
16  eligible for a Section 201(f) investment credit to the
17  borrower, the entire principal amount of the loan or
18  loans between the taxpayer and the borrower should be
19  divided into the basis of the Section 201(f)
20  investment credit property which secures the loan or
21  loans, using for this purpose the original basis of
22  such property on the date that it was placed in service
23  in the River Edge Redevelopment Zone. The subtraction
24  modification available to the taxpayer in any year
25  under this subsection shall be that portion of the
26  total interest paid by the borrower with respect to

 

 

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1  such loan attributable to the eligible property as
2  calculated under the previous sentence. This
3  subparagraph (M) is exempt from the provisions of
4  Section 250;
5  (M-1) For any taxpayer that is a financial
6  organization within the meaning of Section 304(c) of
7  this Act, an amount included in such total as interest
8  income from a loan or loans made by such taxpayer to a
9  borrower, to the extent that such a loan is secured by
10  property which is eligible for the High Impact
11  Business Investment Credit. To determine the portion
12  of a loan or loans that is secured by property eligible
13  for a Section 201(h) investment credit to the
14  borrower, the entire principal amount of the loan or
15  loans between the taxpayer and the borrower should be
16  divided into the basis of the Section 201(h)
17  investment credit property which secures the loan or
18  loans, using for this purpose the original basis of
19  such property on the date that it was placed in service
20  in a federally designated Foreign Trade Zone or
21  Sub-Zone located in Illinois. No taxpayer that is
22  eligible for the deduction provided in subparagraph
23  (M) of paragraph (2) of this subsection shall be
24  eligible for the deduction provided under this
25  subparagraph (M-1). The subtraction modification
26  available to taxpayers in any year under this

 

 

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1  subsection shall be that portion of the total interest
2  paid by the borrower with respect to such loan
3  attributable to the eligible property as calculated
4  under the previous sentence;
5  (N) Two times any contribution made during the
6  taxable year to a designated zone organization to the
7  extent that the contribution (i) qualifies as a
8  charitable contribution under subsection (c) of
9  Section 170 of the Internal Revenue Code and (ii)
10  must, by its terms, be used for a project approved by
11  the Department of Commerce and Economic Opportunity
12  under Section 11 of the Illinois Enterprise Zone Act
13  or under Section 10-10 of the River Edge Redevelopment
14  Zone Act. This subparagraph (N) is exempt from the
15  provisions of Section 250;
16  (O) An amount equal to: (i) 85% for taxable years
17  ending on or before December 31, 1992, or, a
18  percentage equal to the percentage allowable under
19  Section 243(a)(1) of the Internal Revenue Code of 1986
20  for taxable years ending after December 31, 1992, of
21  the amount by which dividends included in taxable
22  income and received from a corporation that is not
23  created or organized under the laws of the United
24  States or any state or political subdivision thereof,
25  including, for taxable years ending on or after
26  December 31, 1988, dividends received or deemed

 

 

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1  received or paid or deemed paid under Sections 951
2  through 965 of the Internal Revenue Code, exceed the
3  amount of the modification provided under subparagraph
4  (G) of paragraph (2) of this subsection (b) which is
5  related to such dividends, and including, for taxable
6  years ending on or after December 31, 2008, dividends
7  received from a captive real estate investment trust;
8  plus (ii) 100% of the amount by which dividends,
9  included in taxable income and received, including,
10  for taxable years ending on or after December 31,
11  1988, dividends received or deemed received or paid or
12  deemed paid under Sections 951 through 964 of the
13  Internal Revenue Code and including, for taxable years
14  ending on or after December 31, 2008, dividends
15  received from a captive real estate investment trust,
16  from any such corporation specified in clause (i) that
17  would but for the provisions of Section 1504(b)(3) of
18  the Internal Revenue Code be treated as a member of the
19  affiliated group which includes the dividend
20  recipient, exceed the amount of the modification
21  provided under subparagraph (G) of paragraph (2) of
22  this subsection (b) which is related to such
23  dividends. For taxable years ending on or after June
24  30, 2021, (i) for purposes of this subparagraph, the
25  term "dividend" does not include any amount treated as
26  a dividend under Section 1248 of the Internal Revenue

 

 

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1  Code, and (ii) this subparagraph shall not apply to
2  dividends for which a deduction is allowed under
3  Section 245(a) of the Internal Revenue Code. This
4  subparagraph (O) is exempt from the provisions of
5  Section 250 of this Act;
6  (P) An amount equal to any contribution made to a
7  job training project established pursuant to the Tax
8  Increment Allocation Redevelopment Act;
9  (Q) An amount equal to the amount of the deduction
10  used to compute the federal income tax credit for
11  restoration of substantial amounts held under claim of
12  right for the taxable year pursuant to Section 1341 of
13  the Internal Revenue Code;
14  (R) On and after July 20, 1999, in the case of an
15  attorney-in-fact with respect to whom an interinsurer
16  or a reciprocal insurer has made the election under
17  Section 835 of the Internal Revenue Code, 26 U.S.C.
18  835, an amount equal to the excess, if any, of the
19  amounts paid or incurred by that interinsurer or
20  reciprocal insurer in the taxable year to the
21  attorney-in-fact over the deduction allowed to that
22  interinsurer or reciprocal insurer with respect to the
23  attorney-in-fact under Section 835(b) of the Internal
24  Revenue Code for the taxable year; the provisions of
25  this subparagraph are exempt from the provisions of
26  Section 250;

 

 

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1  (S) For taxable years ending on or after December
2  31, 1997, in the case of a Subchapter S corporation, an
3  amount equal to all amounts of income allocable to a
4  shareholder subject to the Personal Property Tax
5  Replacement Income Tax imposed by subsections (c) and
6  (d) of Section 201 of this Act, including amounts
7  allocable to organizations exempt from federal income
8  tax by reason of Section 501(a) of the Internal
9  Revenue Code. This subparagraph (S) is exempt from the
10  provisions of Section 250;
11  (T) For taxable years 2001 and thereafter, for the
12  taxable year in which the bonus depreciation deduction
13  is taken on the taxpayer's federal income tax return
14  under subsection (k) of Section 168 of the Internal
15  Revenue Code and for each applicable taxable year
16  thereafter, an amount equal to "x", where:
17  (1) "y" equals the amount of the depreciation
18  deduction taken for the taxable year on the
19  taxpayer's federal income tax return on property
20  for which the bonus depreciation deduction was
21  taken in any year under subsection (k) of Section
22  168 of the Internal Revenue Code, but not
23  including the bonus depreciation deduction;
24  (2) for taxable years ending on or before
25  December 31, 2005, "x" equals "y" multiplied by 30
26  and then divided by 70 (or "y" multiplied by

 

 

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1  0.429); and
2  (3) for taxable years ending after December
3  31, 2005:
4  (i) for property on which a bonus
5  depreciation deduction of 30% of the adjusted
6  basis was taken, "x" equals "y" multiplied by
7  30 and then divided by 70 (or "y" multiplied
8  by 0.429);
9  (ii) for property on which a bonus
10  depreciation deduction of 50% of the adjusted
11  basis was taken, "x" equals "y" multiplied by
12  1.0;
13  (iii) for property on which a bonus
14  depreciation deduction of 100% of the adjusted
15  basis was taken in a taxable year ending on or
16  after December 31, 2021, "x" equals the
17  depreciation deduction that would be allowed
18  on that property if the taxpayer had made the
19  election under Section 168(k)(7) of the
20  Internal Revenue Code to not claim bonus
21  depreciation on that property; and
22  (iv) for property on which a bonus
23  depreciation deduction of a percentage other
24  than 30%, 50% or 100% of the adjusted basis
25  was taken in a taxable year ending on or after
26  December 31, 2021, "x" equals "y" multiplied

 

 

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1  by 100 times the percentage bonus depreciation
2  on the property (that is, 100(bonus%)) and
3  then divided by 100 times 1 minus the
4  percentage bonus depreciation on the property
5  (that is, 100(1bonus%)).
6  The aggregate amount deducted under this
7  subparagraph in all taxable years for any one piece of
8  property may not exceed the amount of the bonus
9  depreciation deduction taken on that property on the
10  taxpayer's federal income tax return under subsection
11  (k) of Section 168 of the Internal Revenue Code. This
12  subparagraph (T) is exempt from the provisions of
13  Section 250;
14  (U) If the taxpayer sells, transfers, abandons, or
15  otherwise disposes of property for which the taxpayer
16  was required in any taxable year to make an addition
17  modification under subparagraph (E-10), then an amount
18  equal to that addition modification.
19  If the taxpayer continues to own property through
20  the last day of the last tax year for which a
21  subtraction is allowed with respect to that property
22  under subparagraph (T) and for which the taxpayer was
23  required in any taxable year to make an addition
24  modification under subparagraph (E-10), then an amount
25  equal to that addition modification.
26  The taxpayer is allowed to take the deduction

 

 

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1  under this subparagraph only once with respect to any
2  one piece of property.
3  This subparagraph (U) is exempt from the
4  provisions of Section 250;
5  (V) The amount of: (i) any interest income (net of
6  the deductions allocable thereto) taken into account
7  for the taxable year with respect to a transaction
8  with a taxpayer that is required to make an addition
9  modification with respect to such transaction under
10  Section 203(a)(2)(D-17), 203(b)(2)(E-12),
11  203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
12  the amount of such addition modification, (ii) any
13  income from intangible property (net of the deductions
14  allocable thereto) taken into account for the taxable
15  year with respect to a transaction with a taxpayer
16  that is required to make an addition modification with
17  respect to such transaction under Section
18  203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
19  203(d)(2)(D-8), but not to exceed the amount of such
20  addition modification, and (iii) any insurance premium
21  income (net of deductions allocable thereto) taken
22  into account for the taxable year with respect to a
23  transaction with a taxpayer that is required to make
24  an addition modification with respect to such
25  transaction under Section 203(a)(2)(D-19), Section
26  203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section

 

 

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1  203(d)(2)(D-9), but not to exceed the amount of that
2  addition modification. This subparagraph (V) is exempt
3  from the provisions of Section 250;
4  (W) An amount equal to the interest income taken
5  into account for the taxable year (net of the
6  deductions allocable thereto) with respect to
7  transactions with (i) a foreign person who would be a
8  member of the taxpayer's unitary business group but
9  for the fact that the foreign person's business
10  activity outside the United States is 80% or more of
11  that person's total business activity and (ii) for
12  taxable years ending on or after December 31, 2008, to
13  a person who would be a member of the same unitary
14  business group but for the fact that the person is
15  prohibited under Section 1501(a)(27) from being
16  included in the unitary business group because he or
17  she is ordinarily required to apportion business
18  income under different subsections of Section 304, but
19  not to exceed the addition modification required to be
20  made for the same taxable year under Section
21  203(b)(2)(E-12) for interest paid, accrued, or
22  incurred, directly or indirectly, to the same person.
23  This subparagraph (W) is exempt from the provisions of
24  Section 250;
25  (X) An amount equal to the income from intangible
26  property taken into account for the taxable year (net

 

 

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1  of the deductions allocable thereto) with respect to
2  transactions with (i) a foreign person who would be a
3  member of the taxpayer's unitary business group but
4  for the fact that the foreign person's business
5  activity outside the United States is 80% or more of
6  that person's total business activity and (ii) for
7  taxable years ending on or after December 31, 2008, to
8  a person who would be a member of the same unitary
9  business group but for the fact that the person is
10  prohibited under Section 1501(a)(27) from being
11  included in the unitary business group because he or
12  she is ordinarily required to apportion business
13  income under different subsections of Section 304, but
14  not to exceed the addition modification required to be
15  made for the same taxable year under Section
16  203(b)(2)(E-13) for intangible expenses and costs
17  paid, accrued, or incurred, directly or indirectly, to
18  the same foreign person. This subparagraph (X) is
19  exempt from the provisions of Section 250;
20  (Y) For taxable years ending on or after December
21  31, 2011, in the case of a taxpayer who was required to
22  add back any insurance premiums under Section
23  203(b)(2)(E-14), such taxpayer may elect to subtract
24  that part of a reimbursement received from the
25  insurance company equal to the amount of the expense
26  or loss (including expenses incurred by the insurance

 

 

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1  company) that would have been taken into account as a
2  deduction for federal income tax purposes if the
3  expense or loss had been uninsured. If a taxpayer
4  makes the election provided for by this subparagraph
5  (Y), the insurer to which the premiums were paid must
6  add back to income the amount subtracted by the
7  taxpayer pursuant to this subparagraph (Y). This
8  subparagraph (Y) is exempt from the provisions of
9  Section 250; and
10  (Z) The difference between the nondeductible
11  controlled foreign corporation dividends under Section
12  965(e)(3) of the Internal Revenue Code over the
13  taxable income of the taxpayer, computed without
14  regard to Section 965(e)(2)(A) of the Internal Revenue
15  Code, and without regard to any net operating loss
16  deduction. This subparagraph (Z) is exempt from the
17  provisions of Section 250.
18  (3) Special rule. For purposes of paragraph (2)(A),
19  "gross income" in the case of a life insurance company,
20  for tax years ending on and after December 31, 1994, and
21  prior to December 31, 2011, shall mean the gross
22  investment income for the taxable year and, for tax years
23  ending on or after December 31, 2011, shall mean all
24  amounts included in life insurance gross income under
25  Section 803(a)(3) of the Internal Revenue Code.

 

 

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1  (c) Trusts and estates.
2  (1) In general. In the case of a trust or estate, base
3  income means an amount equal to the taxpayer's taxable
4  income for the taxable year as modified by paragraph (2).
5  (2) Modifications. Subject to the provisions of
6  paragraph (3), the taxable income referred to in paragraph
7  (1) shall be modified by adding thereto the sum of the
8  following amounts:
9  (A) An amount equal to all amounts paid or accrued
10  to the taxpayer as interest or dividends during the
11  taxable year to the extent excluded from gross income
12  in the computation of taxable income;
13  (B) In the case of (i) an estate, $600; (ii) a
14  trust which, under its governing instrument, is
15  required to distribute all of its income currently,
16  $300; and (iii) any other trust, $100, but in each such
17  case, only to the extent such amount was deducted in
18  the computation of taxable income;
19  (C) An amount equal to the amount of tax imposed by
20  this Act to the extent deducted from gross income in
21  the computation of taxable income for the taxable
22  year;
23  (D) The amount of any net operating loss deduction
24  taken in arriving at taxable income, other than a net
25  operating loss carried forward from a taxable year
26  ending prior to December 31, 1986;

 

 

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1  (E) For taxable years in which a net operating
2  loss carryback or carryforward from a taxable year
3  ending prior to December 31, 1986 is an element of
4  taxable income under paragraph (1) of subsection (e)
5  or subparagraph (E) of paragraph (2) of subsection
6  (e), the amount by which addition modifications other
7  than those provided by this subparagraph (E) exceeded
8  subtraction modifications in such taxable year, with
9  the following limitations applied in the order that
10  they are listed:
11  (i) the addition modification relating to the
12  net operating loss carried back or forward to the
13  taxable year from any taxable year ending prior to
14  December 31, 1986 shall be reduced by the amount
15  of addition modification under this subparagraph
16  (E) which related to that net operating loss and
17  which was taken into account in calculating the
18  base income of an earlier taxable year, and
19  (ii) the addition modification relating to the
20  net operating loss carried back or forward to the
21  taxable year from any taxable year ending prior to
22  December 31, 1986 shall not exceed the amount of
23  such carryback or carryforward;
24  For taxable years in which there is a net
25  operating loss carryback or carryforward from more
26  than one other taxable year ending prior to December

 

 

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1  31, 1986, the addition modification provided in this
2  subparagraph (E) shall be the sum of the amounts
3  computed independently under the preceding provisions
4  of this subparagraph (E) for each such taxable year;
5  (F) For taxable years ending on or after January
6  1, 1989, an amount equal to the tax deducted pursuant
7  to Section 164 of the Internal Revenue Code if the
8  trust or estate is claiming the same tax for purposes
9  of the Illinois foreign tax credit under Section 601
10  of this Act;
11  (G) An amount equal to the amount of the capital
12  gain deduction allowable under the Internal Revenue
13  Code, to the extent deducted from gross income in the
14  computation of taxable income;
15  (G-5) For taxable years ending after December 31,
16  1997, an amount equal to any eligible remediation
17  costs that the trust or estate deducted in computing
18  adjusted gross income and for which the trust or
19  estate claims a credit under subsection (l) of Section
20  201;
21  (G-10) For taxable years 2001 and thereafter, an
22  amount equal to the bonus depreciation deduction taken
23  on the taxpayer's federal income tax return for the
24  taxable year under subsection (k) of Section 168 of
25  the Internal Revenue Code; and
26  (G-11) If the taxpayer sells, transfers, abandons,

 

 

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1  or otherwise disposes of property for which the
2  taxpayer was required in any taxable year to make an
3  addition modification under subparagraph (G-10), then
4  an amount equal to the aggregate amount of the
5  deductions taken in all taxable years under
6  subparagraph (R) with respect to that property.
7  If the taxpayer continues to own property through
8  the last day of the last tax year for which a
9  subtraction is allowed with respect to that property
10  under subparagraph (R) and for which the taxpayer was
11  allowed in any taxable year to make a subtraction
12  modification under subparagraph (R), then an amount
13  equal to that subtraction modification.
14  The taxpayer is required to make the addition
15  modification under this subparagraph only once with
16  respect to any one piece of property;
17  (G-12) An amount equal to the amount otherwise
18  allowed as a deduction in computing base income for
19  interest paid, accrued, or incurred, directly or
20  indirectly, (i) for taxable years ending on or after
21  December 31, 2004, to a foreign person who would be a
22  member of the same unitary business group but for the
23  fact that the foreign person's business activity
24  outside the United States is 80% or more of the foreign
25  person's total business activity and (ii) for taxable
26  years ending on or after December 31, 2008, to a person

 

 

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1  who would be a member of the same unitary business
2  group but for the fact that the person is prohibited
3  under Section 1501(a)(27) from being included in the
4  unitary business group because he or she is ordinarily
5  required to apportion business income under different
6  subsections of Section 304. The addition modification
7  required by this subparagraph shall be reduced to the
8  extent that dividends were included in base income of
9  the unitary group for the same taxable year and
10  received by the taxpayer or by a member of the
11  taxpayer's unitary business group (including amounts
12  included in gross income pursuant to Sections 951
13  through 964 of the Internal Revenue Code and amounts
14  included in gross income under Section 78 of the
15  Internal Revenue Code) with respect to the stock of
16  the same person to whom the interest was paid,
17  accrued, or incurred.
18  This paragraph shall not apply to the following:
19  (i) an item of interest paid, accrued, or
20  incurred, directly or indirectly, to a person who
21  is subject in a foreign country or state, other
22  than a state which requires mandatory unitary
23  reporting, to a tax on or measured by net income
24  with respect to such interest; or
25  (ii) an item of interest paid, accrued, or
26  incurred, directly or indirectly, to a person if

 

 

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1  the taxpayer can establish, based on a
2  preponderance of the evidence, both of the
3  following:
4  (a) the person, during the same taxable
5  year, paid, accrued, or incurred, the interest
6  to a person that is not a related member, and
7  (b) the transaction giving rise to the
8  interest expense between the taxpayer and the
9  person did not have as a principal purpose the
10  avoidance of Illinois income tax, and is paid
11  pursuant to a contract or agreement that
12  reflects an arm's-length interest rate and
13  terms; or
14  (iii) the taxpayer can establish, based on
15  clear and convincing evidence, that the interest
16  paid, accrued, or incurred relates to a contract
17  or agreement entered into at arm's-length rates
18  and terms and the principal purpose for the
19  payment is not federal or Illinois tax avoidance;
20  or
21  (iv) an item of interest paid, accrued, or
22  incurred, directly or indirectly, to a person if
23  the taxpayer establishes by clear and convincing
24  evidence that the adjustments are unreasonable; or
25  if the taxpayer and the Director agree in writing
26  to the application or use of an alternative method

 

 

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1  of apportionment under Section 304(f).
2  Nothing in this subsection shall preclude the
3  Director from making any other adjustment
4  otherwise allowed under Section 404 of this Act
5  for any tax year beginning after the effective
6  date of this amendment provided such adjustment is
7  made pursuant to regulation adopted by the
8  Department and such regulations provide methods
9  and standards by which the Department will utilize
10  its authority under Section 404 of this Act;
11  (G-13) An amount equal to the amount of intangible
12  expenses and costs otherwise allowed as a deduction in
13  computing base income, and that were paid, accrued, or
14  incurred, directly or indirectly, (i) for taxable
15  years ending on or after December 31, 2004, to a
16  foreign person who would be a member of the same
17  unitary business group but for the fact that the
18  foreign person's business activity outside the United
19  States is 80% or more of that person's total business
20  activity and (ii) for taxable years ending on or after
21  December 31, 2008, to a person who would be a member of
22  the same unitary business group but for the fact that
23  the person is prohibited under Section 1501(a)(27)
24  from being included in the unitary business group
25  because he or she is ordinarily required to apportion
26  business income under different subsections of Section

 

 

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1  304. The addition modification required by this
2  subparagraph shall be reduced to the extent that
3  dividends were included in base income of the unitary
4  group for the same taxable year and received by the
5  taxpayer or by a member of the taxpayer's unitary
6  business group (including amounts included in gross
7  income pursuant to Sections 951 through 964 of the
8  Internal Revenue Code and amounts included in gross
9  income under Section 78 of the Internal Revenue Code)
10  with respect to the stock of the same person to whom
11  the intangible expenses and costs were directly or
12  indirectly paid, incurred, or accrued. The preceding
13  sentence shall not apply to the extent that the same
14  dividends caused a reduction to the addition
15  modification required under Section 203(c)(2)(G-12) of
16  this Act. As used in this subparagraph, the term
17  "intangible expenses and costs" includes: (1)
18  expenses, losses, and costs for or related to the
19  direct or indirect acquisition, use, maintenance or
20  management, ownership, sale, exchange, or any other
21  disposition of intangible property; (2) losses
22  incurred, directly or indirectly, from factoring
23  transactions or discounting transactions; (3) royalty,
24  patent, technical, and copyright fees; (4) licensing
25  fees; and (5) other similar expenses and costs. For
26  purposes of this subparagraph, "intangible property"

 

 

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1  includes patents, patent applications, trade names,
2  trademarks, service marks, copyrights, mask works,
3  trade secrets, and similar types of intangible assets.
4  This paragraph shall not apply to the following:
5  (i) any item of intangible expenses or costs
6  paid, accrued, or incurred, directly or
7  indirectly, from a transaction with a person who
8  is subject in a foreign country or state, other
9  than a state which requires mandatory unitary
10  reporting, to a tax on or measured by net income
11  with respect to such item; or
12  (ii) any item of intangible expense or cost
13  paid, accrued, or incurred, directly or
14  indirectly, if the taxpayer can establish, based
15  on a preponderance of the evidence, both of the
16  following:
17  (a) the person during the same taxable
18  year paid, accrued, or incurred, the
19  intangible expense or cost to a person that is
20  not a related member, and
21  (b) the transaction giving rise to the
22  intangible expense or cost between the
23  taxpayer and the person did not have as a
24  principal purpose the avoidance of Illinois
25  income tax, and is paid pursuant to a contract
26  or agreement that reflects arm's-length terms;

 

 

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1  or
2  (iii) any item of intangible expense or cost
3  paid, accrued, or incurred, directly or
4  indirectly, from a transaction with a person if
5  the taxpayer establishes by clear and convincing
6  evidence, that the adjustments are unreasonable;
7  or if the taxpayer and the Director agree in
8  writing to the application or use of an
9  alternative method of apportionment under Section
10  304(f);
11  Nothing in this subsection shall preclude the
12  Director from making any other adjustment
13  otherwise allowed under Section 404 of this Act
14  for any tax year beginning after the effective
15  date of this amendment provided such adjustment is
16  made pursuant to regulation adopted by the
17  Department and such regulations provide methods
18  and standards by which the Department will utilize
19  its authority under Section 404 of this Act;
20  (G-14) For taxable years ending on or after
21  December 31, 2008, an amount equal to the amount of
22  insurance premium expenses and costs otherwise allowed
23  as a deduction in computing base income, and that were
24  paid, accrued, or incurred, directly or indirectly, to
25  a person who would be a member of the same unitary
26  business group but for the fact that the person is

 

 

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1  prohibited under Section 1501(a)(27) from being
2  included in the unitary business group because he or
3  she is ordinarily required to apportion business
4  income under different subsections of Section 304. The
5  addition modification required by this subparagraph
6  shall be reduced to the extent that dividends were
7  included in base income of the unitary group for the
8  same taxable year and received by the taxpayer or by a
9  member of the taxpayer's unitary business group
10  (including amounts included in gross income under
11  Sections 951 through 964 of the Internal Revenue Code
12  and amounts included in gross income under Section 78
13  of the Internal Revenue Code) with respect to the
14  stock of the same person to whom the premiums and costs
15  were directly or indirectly paid, incurred, or
16  accrued. The preceding sentence does not apply to the
17  extent that the same dividends caused a reduction to
18  the addition modification required under Section
19  203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
20  Act;
21  (G-15) An amount equal to the credit allowable to
22  the taxpayer under Section 218(a) of this Act,
23  determined without regard to Section 218(c) of this
24  Act;
25  (G-16) For taxable years ending on or after
26  December 31, 2017, an amount equal to the deduction

 

 

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1  allowed under Section 199 of the Internal Revenue Code
2  for the taxable year;
3  and by deducting from the total so obtained the sum of the
4  following amounts:
5  (H) An amount equal to all amounts included in
6  such total pursuant to the provisions of Sections
7  402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
8  of the Internal Revenue Code or included in such total
9  as distributions under the provisions of any
10  retirement or disability plan for employees of any
11  governmental agency or unit, or retirement payments to
12  retired partners, which payments are excluded in
13  computing net earnings from self employment by Section
14  1402 of the Internal Revenue Code and regulations
15  adopted pursuant thereto;
16  (I) The valuation limitation amount;
17  (J) An amount equal to the amount of any tax
18  imposed by this Act which was refunded to the taxpayer
19  and included in such total for the taxable year;
20  (K) An amount equal to all amounts included in
21  taxable income as modified by subparagraphs (A), (B),
22  (C), (D), (E), (F) and (G) which are exempt from
23  taxation by this State either by reason of its
24  statutes or Constitution or by reason of the
25  Constitution, treaties or statutes of the United
26  States; provided that, in the case of any statute of

 

 

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1  this State that exempts income derived from bonds or
2  other obligations from the tax imposed under this Act,
3  the amount exempted shall be the interest net of bond
4  premium amortization;
5  (L) With the exception of any amounts subtracted
6  under subparagraph (K), an amount equal to the sum of
7  all amounts disallowed as deductions by (i) Sections
8  171(a)(2) and 265(a)(2) of the Internal Revenue Code,
9  and all amounts of expenses allocable to interest and
10  disallowed as deductions by Section 265(a)(1) of the
11  Internal Revenue Code; and (ii) for taxable years
12  ending on or after August 13, 1999, Sections
13  171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
14  Internal Revenue Code, plus, (iii) for taxable years
15  ending on or after December 31, 2011, Section
16  45G(e)(3) of the Internal Revenue Code and, for
17  taxable years ending on or after December 31, 2008,
18  any amount included in gross income under Section 87
19  of the Internal Revenue Code; the provisions of this
20  subparagraph are exempt from the provisions of Section
21  250;
22  (M) An amount equal to those dividends included in
23  such total which were paid by a corporation which
24  conducts business operations in a River Edge
25  Redevelopment Zone or zones created under the River
26  Edge Redevelopment Zone Act and conducts substantially

 

 

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1  all of its operations in a River Edge Redevelopment
2  Zone or zones. This subparagraph (M) is exempt from
3  the provisions of Section 250;
4  (N) An amount equal to any contribution made to a
5  job training project established pursuant to the Tax
6  Increment Allocation Redevelopment Act;
7  (O) An amount equal to those dividends included in
8  such total that were paid by a corporation that
9  conducts business operations in a federally designated
10  Foreign Trade Zone or Sub-Zone and that is designated
11  a High Impact Business located in Illinois; provided
12  that dividends eligible for the deduction provided in
13  subparagraph (M) of paragraph (2) of this subsection
14  shall not be eligible for the deduction provided under
15  this subparagraph (O);
16  (P) An amount equal to the amount of the deduction
17  used to compute the federal income tax credit for
18  restoration of substantial amounts held under claim of
19  right for the taxable year pursuant to Section 1341 of
20  the Internal Revenue Code;
21  (Q) For taxable year 1999 and thereafter, an
22  amount equal to the amount of any (i) distributions,
23  to the extent includible in gross income for federal
24  income tax purposes, made to the taxpayer because of
25  his or her status as a victim of persecution for racial
26  or religious reasons by Nazi Germany or any other Axis

 

 

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1  regime or as an heir of the victim and (ii) items of
2  income, to the extent includible in gross income for
3  federal income tax purposes, attributable to, derived
4  from or in any way related to assets stolen from,
5  hidden from, or otherwise lost to a victim of
6  persecution for racial or religious reasons by Nazi
7  Germany or any other Axis regime immediately prior to,
8  during, and immediately after World War II, including,
9  but not limited to, interest on the proceeds
10  receivable as insurance under policies issued to a
11  victim of persecution for racial or religious reasons
12  by Nazi Germany or any other Axis regime by European
13  insurance companies immediately prior to and during
14  World War II; provided, however, this subtraction from
15  federal adjusted gross income does not apply to assets
16  acquired with such assets or with the proceeds from
17  the sale of such assets; provided, further, this
18  paragraph shall only apply to a taxpayer who was the
19  first recipient of such assets after their recovery
20  and who is a victim of persecution for racial or
21  religious reasons by Nazi Germany or any other Axis
22  regime or as an heir of the victim. The amount of and
23  the eligibility for any public assistance, benefit, or
24  similar entitlement is not affected by the inclusion
25  of items (i) and (ii) of this paragraph in gross income
26  for federal income tax purposes. This paragraph is

 

 

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1  exempt from the provisions of Section 250;
2  (R) For taxable years 2001 and thereafter, for the
3  taxable year in which the bonus depreciation deduction
4  is taken on the taxpayer's federal income tax return
5  under subsection (k) of Section 168 of the Internal
6  Revenue Code and for each applicable taxable year
7  thereafter, an amount equal to "x", where:
8  (1) "y" equals the amount of the depreciation
9  deduction taken for the taxable year on the
10  taxpayer's federal income tax return on property
11  for which the bonus depreciation deduction was
12  taken in any year under subsection (k) of Section
13  168 of the Internal Revenue Code, but not
14  including the bonus depreciation deduction;
15  (2) for taxable years ending on or before
16  December 31, 2005, "x" equals "y" multiplied by 30
17  and then divided by 70 (or "y" multiplied by
18  0.429); and
19  (3) for taxable years ending after December
20  31, 2005:
21  (i) for property on which a bonus
22  depreciation deduction of 30% of the adjusted
23  basis was taken, "x" equals "y" multiplied by
24  30 and then divided by 70 (or "y" multiplied
25  by 0.429);
26  (ii) for property on which a bonus

 

 

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1  depreciation deduction of 50% of the adjusted
2  basis was taken, "x" equals "y" multiplied by
3  1.0;
4  (iii) for property on which a bonus
5  depreciation deduction of 100% of the adjusted
6  basis was taken in a taxable year ending on or
7  after December 31, 2021, "x" equals the
8  depreciation deduction that would be allowed
9  on that property if the taxpayer had made the
10  election under Section 168(k)(7) of the
11  Internal Revenue Code to not claim bonus
12  depreciation on that property; and
13  (iv) for property on which a bonus
14  depreciation deduction of a percentage other
15  than 30%, 50% or 100% of the adjusted basis
16  was taken in a taxable year ending on or after
17  December 31, 2021, "x" equals "y" multiplied
18  by 100 times the percentage bonus depreciation
19  on the property (that is, 100(bonus%)) and
20  then divided by 100 times 1 minus the
21  percentage bonus depreciation on the property
22  (that is, 100(1bonus%)).
23  The aggregate amount deducted under this
24  subparagraph in all taxable years for any one piece of
25  property may not exceed the amount of the bonus
26  depreciation deduction taken on that property on the

 

 

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1  taxpayer's federal income tax return under subsection
2  (k) of Section 168 of the Internal Revenue Code. This
3  subparagraph (R) is exempt from the provisions of
4  Section 250;
5  (S) If the taxpayer sells, transfers, abandons, or
6  otherwise disposes of property for which the taxpayer
7  was required in any taxable year to make an addition
8  modification under subparagraph (G-10), then an amount
9  equal to that addition modification.
10  If the taxpayer continues to own property through
11  the last day of the last tax year for which a
12  subtraction is allowed with respect to that property
13  under subparagraph (R) and for which the taxpayer was
14  required in any taxable year to make an addition
15  modification under subparagraph (G-10), then an amount
16  equal to that addition modification.
17  The taxpayer is allowed to take the deduction
18  under this subparagraph only once with respect to any
19  one piece of property.
20  This subparagraph (S) is exempt from the
21  provisions of Section 250;
22  (T) The amount of (i) any interest income (net of
23  the deductions allocable thereto) taken into account
24  for the taxable year with respect to a transaction
25  with a taxpayer that is required to make an addition
26  modification with respect to such transaction under

 

 

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1  Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2  203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3  the amount of such addition modification and (ii) any
4  income from intangible property (net of the deductions
5  allocable thereto) taken into account for the taxable
6  year with respect to a transaction with a taxpayer
7  that is required to make an addition modification with
8  respect to such transaction under Section
9  203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
10  203(d)(2)(D-8), but not to exceed the amount of such
11  addition modification. This subparagraph (T) is exempt
12  from the provisions of Section 250;
13  (U) An amount equal to the interest income taken
14  into account for the taxable year (net of the
15  deductions allocable thereto) with respect to
16  transactions with (i) a foreign person who would be a
17  member of the taxpayer's unitary business group but
18  for the fact the foreign person's business activity
19  outside the United States is 80% or more of that
20  person's total business activity and (ii) for taxable
21  years ending on or after December 31, 2008, to a person
22  who would be a member of the same unitary business
23  group but for the fact that the person is prohibited
24  under Section 1501(a)(27) from being included in the
25  unitary business group because he or she is ordinarily
26  required to apportion business income under different

 

 

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1  subsections of Section 304, but not to exceed the
2  addition modification required to be made for the same
3  taxable year under Section 203(c)(2)(G-12) for
4  interest paid, accrued, or incurred, directly or
5  indirectly, to the same person. This subparagraph (U)
6  is exempt from the provisions of Section 250;
7  (V) An amount equal to the income from intangible
8  property taken into account for the taxable year (net
9  of the deductions allocable thereto) with respect to
10  transactions with (i) a foreign person who would be a
11  member of the taxpayer's unitary business group but
12  for the fact that the foreign person's business
13  activity outside the United States is 80% or more of
14  that person's total business activity and (ii) for
15  taxable years ending on or after December 31, 2008, to
16  a person who would be a member of the same unitary
17  business group but for the fact that the person is
18  prohibited under Section 1501(a)(27) from being
19  included in the unitary business group because he or
20  she is ordinarily required to apportion business
21  income under different subsections of Section 304, but
22  not to exceed the addition modification required to be
23  made for the same taxable year under Section
24  203(c)(2)(G-13) for intangible expenses and costs
25  paid, accrued, or incurred, directly or indirectly, to
26  the same foreign person. This subparagraph (V) is

 

 

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1  exempt from the provisions of Section 250;
2  (W) in the case of an estate, an amount equal to
3  all amounts included in such total pursuant to the
4  provisions of Section 111 of the Internal Revenue Code
5  as a recovery of items previously deducted by the
6  decedent from adjusted gross income in the computation
7  of taxable income. This subparagraph (W) is exempt
8  from Section 250;
9  (X) an amount equal to the refund included in such
10  total of any tax deducted for federal income tax
11  purposes, to the extent that deduction was added back
12  under subparagraph (F). This subparagraph (X) is
13  exempt from the provisions of Section 250;
14  (Y) For taxable years ending on or after December
15  31, 2011, in the case of a taxpayer who was required to
16  add back any insurance premiums under Section
17  203(c)(2)(G-14), such taxpayer may elect to subtract
18  that part of a reimbursement received from the
19  insurance company equal to the amount of the expense
20  or loss (including expenses incurred by the insurance
21  company) that would have been taken into account as a
22  deduction for federal income tax purposes if the
23  expense or loss had been uninsured. If a taxpayer
24  makes the election provided for by this subparagraph
25  (Y), the insurer to which the premiums were paid must
26  add back to income the amount subtracted by the

 

 

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1  taxpayer pursuant to this subparagraph (Y). This
2  subparagraph (Y) is exempt from the provisions of
3  Section 250; and
4  (Z) For taxable years beginning after December 31,
5  2018 and before January 1, 2026, the amount of excess
6  business loss of the taxpayer disallowed as a
7  deduction by Section 461(l)(1)(B) of the Internal
8  Revenue Code.
9  (3) Limitation. The amount of any modification
10  otherwise required under this subsection shall, under
11  regulations prescribed by the Department, be adjusted by
12  any amounts included therein which were properly paid,
13  credited, or required to be distributed, or permanently
14  set aside for charitable purposes pursuant to Internal
15  Revenue Code Section 642(c) during the taxable year.
16  (d) Partnerships.
17  (1) In general. In the case of a partnership, base
18  income means an amount equal to the taxpayer's taxable
19  income for the taxable year as modified by paragraph (2).
20  (2) Modifications. The taxable income referred to in
21  paragraph (1) shall be modified by adding thereto the sum
22  of the following amounts:
23  (A) An amount equal to all amounts paid or accrued
24  to the taxpayer as interest or dividends during the
25  taxable year to the extent excluded from gross income

 

 

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1  in the computation of taxable income;
2  (B) An amount equal to the amount of tax imposed by
3  this Act to the extent deducted from gross income for
4  the taxable year;
5  (C) The amount of deductions allowed to the
6  partnership pursuant to Section 707 (c) of the
7  Internal Revenue Code in calculating its taxable
8  income;
9  (D) An amount equal to the amount of the capital
10  gain deduction allowable under the Internal Revenue
11  Code, to the extent deducted from gross income in the
12  computation of taxable income;
13  (D-5) For taxable years 2001 and thereafter, an
14  amount equal to the bonus depreciation deduction taken
15  on the taxpayer's federal income tax return for the
16  taxable year under subsection (k) of Section 168 of
17  the Internal Revenue Code;
18  (D-6) If the taxpayer sells, transfers, abandons,
19  or otherwise disposes of property for which the
20  taxpayer was required in any taxable year to make an
21  addition modification under subparagraph (D-5), then
22  an amount equal to the aggregate amount of the
23  deductions taken in all taxable years under
24  subparagraph (O) with respect to that property.
25  If the taxpayer continues to own property through
26  the last day of the last tax year for which a

 

 

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1  subtraction is allowed with respect to that property
2  under subparagraph (O) and for which the taxpayer was
3  allowed in any taxable year to make a subtraction
4  modification under subparagraph (O), then an amount
5  equal to that subtraction modification.
6  The taxpayer is required to make the addition
7  modification under this subparagraph only once with
8  respect to any one piece of property;
9  (D-7) An amount equal to the amount otherwise
10  allowed as a deduction in computing base income for
11  interest paid, accrued, or incurred, directly or
12  indirectly, (i) for taxable years ending on or after
13  December 31, 2004, to a foreign person who would be a
14  member of the same unitary business group but for the
15  fact the foreign person's business activity outside
16  the United States is 80% or more of the foreign
17  person's total business activity and (ii) for taxable
18  years ending on or after December 31, 2008, to a person
19  who would be a member of the same unitary business
20  group but for the fact that the person is prohibited
21  under Section 1501(a)(27) from being included in the
22  unitary business group because he or she is ordinarily
23  required to apportion business income under different
24  subsections of Section 304. The addition modification
25  required by this subparagraph shall be reduced to the
26  extent that dividends were included in base income of

 

 

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1  the unitary group for the same taxable year and
2  received by the taxpayer or by a member of the
3  taxpayer's unitary business group (including amounts
4  included in gross income pursuant to Sections 951
5  through 964 of the Internal Revenue Code and amounts
6  included in gross income under Section 78 of the
7  Internal Revenue Code) with respect to the stock of
8  the same person to whom the interest was paid,
9  accrued, or incurred.
10  This paragraph shall not apply to the following:
11  (i) an item of interest paid, accrued, or
12  incurred, directly or indirectly, to a person who
13  is subject in a foreign country or state, other
14  than a state which requires mandatory unitary
15  reporting, to a tax on or measured by net income
16  with respect to such interest; or
17  (ii) an item of interest paid, accrued, or
18  incurred, directly or indirectly, to a person if
19  the taxpayer can establish, based on a
20  preponderance of the evidence, both of the
21  following:
22  (a) the person, during the same taxable
23  year, paid, accrued, or incurred, the interest
24  to a person that is not a related member, and
25  (b) the transaction giving rise to the
26  interest expense between the taxpayer and the

 

 

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1  person did not have as a principal purpose the
2  avoidance of Illinois income tax, and is paid
3  pursuant to a contract or agreement that
4  reflects an arm's-length interest rate and
5  terms; or
6  (iii) the taxpayer can establish, based on
7  clear and convincing evidence, that the interest
8  paid, accrued, or incurred relates to a contract
9  or agreement entered into at arm's-length rates
10  and terms and the principal purpose for the
11  payment is not federal or Illinois tax avoidance;
12  or
13  (iv) an item of interest paid, accrued, or
14  incurred, directly or indirectly, to a person if
15  the taxpayer establishes by clear and convincing
16  evidence that the adjustments are unreasonable; or
17  if the taxpayer and the Director agree in writing
18  to the application or use of an alternative method
19  of apportionment under Section 304(f).
20  Nothing in this subsection shall preclude the
21  Director from making any other adjustment
22  otherwise allowed under Section 404 of this Act
23  for any tax year beginning after the effective
24  date of this amendment provided such adjustment is
25  made pursuant to regulation adopted by the
26  Department and such regulations provide methods

 

 

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1  and standards by which the Department will utilize
2  its authority under Section 404 of this Act; and
3  (D-8) An amount equal to the amount of intangible
4  expenses and costs otherwise allowed as a deduction in
5  computing base income, and that were paid, accrued, or
6  incurred, directly or indirectly, (i) for taxable
7  years ending on or after December 31, 2004, to a
8  foreign person who would be a member of the same
9  unitary business group but for the fact that the
10  foreign person's business activity outside the United
11  States is 80% or more of that person's total business
12  activity and (ii) for taxable years ending on or after
13  December 31, 2008, to a person who would be a member of
14  the same unitary business group but for the fact that
15  the person is prohibited under Section 1501(a)(27)
16  from being included in the unitary business group
17  because he or she is ordinarily required to apportion
18  business income under different subsections of Section
19  304. The addition modification required by this
20  subparagraph shall be reduced to the extent that
21  dividends were included in base income of the unitary
22  group for the same taxable year and received by the
23  taxpayer or by a member of the taxpayer's unitary
24  business group (including amounts included in gross
25  income pursuant to Sections 951 through 964 of the
26  Internal Revenue Code and amounts included in gross

 

 

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1  income under Section 78 of the Internal Revenue Code)
2  with respect to the stock of the same person to whom
3  the intangible expenses and costs were directly or
4  indirectly paid, incurred or accrued. The preceding
5  sentence shall not apply to the extent that the same
6  dividends caused a reduction to the addition
7  modification required under Section 203(d)(2)(D-7) of
8  this Act. As used in this subparagraph, the term
9  "intangible expenses and costs" includes (1) expenses,
10  losses, and costs for, or related to, the direct or
11  indirect acquisition, use, maintenance or management,
12  ownership, sale, exchange, or any other disposition of
13  intangible property; (2) losses incurred, directly or
14  indirectly, from factoring transactions or discounting
15  transactions; (3) royalty, patent, technical, and
16  copyright fees; (4) licensing fees; and (5) other
17  similar expenses and costs. For purposes of this
18  subparagraph, "intangible property" includes patents,
19  patent applications, trade names, trademarks, service
20  marks, copyrights, mask works, trade secrets, and
21  similar types of intangible assets;
22  This paragraph shall not apply to the following:
23  (i) any item of intangible expenses or costs
24  paid, accrued, or incurred, directly or
25  indirectly, from a transaction with a person who
26  is subject in a foreign country or state, other

 

 

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1  than a state which requires mandatory unitary
2  reporting, to a tax on or measured by net income
3  with respect to such item; or
4  (ii) any item of intangible expense or cost
5  paid, accrued, or incurred, directly or
6  indirectly, if the taxpayer can establish, based
7  on a preponderance of the evidence, both of the
8  following:
9  (a) the person during the same taxable
10  year paid, accrued, or incurred, the
11  intangible expense or cost to a person that is
12  not a related member, and
13  (b) the transaction giving rise to the
14  intangible expense or cost between the
15  taxpayer and the person did not have as a
16  principal purpose the avoidance of Illinois
17  income tax, and is paid pursuant to a contract
18  or agreement that reflects arm's-length terms;
19  or
20  (iii) any item of intangible expense or cost
21  paid, accrued, or incurred, directly or
22  indirectly, from a transaction with a person if
23  the taxpayer establishes by clear and convincing
24  evidence, that the adjustments are unreasonable;
25  or if the taxpayer and the Director agree in
26  writing to the application or use of an

 

 

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1  alternative method of apportionment under Section
2  304(f);
3  Nothing in this subsection shall preclude the
4  Director from making any other adjustment
5  otherwise allowed under Section 404 of this Act
6  for any tax year beginning after the effective
7  date of this amendment provided such adjustment is
8  made pursuant to regulation adopted by the
9  Department and such regulations provide methods
10  and standards by which the Department will utilize
11  its authority under Section 404 of this Act;
12  (D-9) For taxable years ending on or after
13  December 31, 2008, an amount equal to the amount of
14  insurance premium expenses and costs otherwise allowed
15  as a deduction in computing base income, and that were
16  paid, accrued, or incurred, directly or indirectly, to
17  a person who would be a member of the same unitary
18  business group but for the fact that the person is
19  prohibited under Section 1501(a)(27) from being
20  included in the unitary business group because he or
21  she is ordinarily required to apportion business
22  income under different subsections of Section 304. The
23  addition modification required by this subparagraph
24  shall be reduced to the extent that dividends were
25  included in base income of the unitary group for the
26  same taxable year and received by the taxpayer or by a

 

 

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1  member of the taxpayer's unitary business group
2  (including amounts included in gross income under
3  Sections 951 through 964 of the Internal Revenue Code
4  and amounts included in gross income under Section 78
5  of the Internal Revenue Code) with respect to the
6  stock of the same person to whom the premiums and costs
7  were directly or indirectly paid, incurred, or
8  accrued. The preceding sentence does not apply to the
9  extent that the same dividends caused a reduction to
10  the addition modification required under Section
11  203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
12  (D-10) An amount equal to the credit allowable to
13  the taxpayer under Section 218(a) of this Act,
14  determined without regard to Section 218(c) of this
15  Act;
16  (D-11) For taxable years ending on or after
17  December 31, 2017, an amount equal to the deduction
18  allowed under Section 199 of the Internal Revenue Code
19  for the taxable year;
20  and by deducting from the total so obtained the following
21  amounts:
22  (E) The valuation limitation amount;
23  (F) An amount equal to the amount of any tax
24  imposed by this Act which was refunded to the taxpayer
25  and included in such total for the taxable year;
26  (G) An amount equal to all amounts included in

 

 

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1  taxable income as modified by subparagraphs (A), (B),
2  (C) and (D) which are exempt from taxation by this
3  State either by reason of its statutes or Constitution
4  or by reason of the Constitution, treaties or statutes
5  of the United States; provided that, in the case of any
6  statute of this State that exempts income derived from
7  bonds or other obligations from the tax imposed under
8  this Act, the amount exempted shall be the interest
9  net of bond premium amortization;
10  (H) Any income of the partnership which
11  constitutes personal service income as defined in
12  Section 1348(b)(1) of the Internal Revenue Code (as in
13  effect December 31, 1981) or a reasonable allowance
14  for compensation paid or accrued for services rendered
15  by partners to the partnership, whichever is greater;
16  this subparagraph (H) is exempt from the provisions of
17  Section 250;
18  (I) An amount equal to all amounts of income
19  distributable to an entity subject to the Personal
20  Property Tax Replacement Income Tax imposed by
21  subsections (c) and (d) of Section 201 of this Act
22  including amounts distributable to organizations
23  exempt from federal income tax by reason of Section
24  501(a) of the Internal Revenue Code; this subparagraph
25  (I) is exempt from the provisions of Section 250;
26  (J) With the exception of any amounts subtracted

 

 

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1  under subparagraph (G), an amount equal to the sum of
2  all amounts disallowed as deductions by (i) Sections
3  171(a)(2) and 265(a)(2) of the Internal Revenue Code,
4  and all amounts of expenses allocable to interest and
5  disallowed as deductions by Section 265(a)(1) of the
6  Internal Revenue Code; and (ii) for taxable years
7  ending on or after August 13, 1999, Sections
8  171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
9  Internal Revenue Code, plus, (iii) for taxable years
10  ending on or after December 31, 2011, Section
11  45G(e)(3) of the Internal Revenue Code and, for
12  taxable years ending on or after December 31, 2008,
13  any amount included in gross income under Section 87
14  of the Internal Revenue Code; the provisions of this
15  subparagraph are exempt from the provisions of Section
16  250;
17  (K) An amount equal to those dividends included in
18  such total which were paid by a corporation which
19  conducts business operations in a River Edge
20  Redevelopment Zone or zones created under the River
21  Edge Redevelopment Zone Act and conducts substantially
22  all of its operations from a River Edge Redevelopment
23  Zone or zones. This subparagraph (K) is exempt from
24  the provisions of Section 250;
25  (L) An amount equal to any contribution made to a
26  job training project established pursuant to the Real

 

 

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1  Property Tax Increment Allocation Redevelopment Act;
2  (M) An amount equal to those dividends included in
3  such total that were paid by a corporation that
4  conducts business operations in a federally designated
5  Foreign Trade Zone or Sub-Zone and that is designated
6  a High Impact Business located in Illinois; provided
7  that dividends eligible for the deduction provided in
8  subparagraph (K) of paragraph (2) of this subsection
9  shall not be eligible for the deduction provided under
10  this subparagraph (M);
11  (N) An amount equal to the amount of the deduction
12  used to compute the federal income tax credit for
13  restoration of substantial amounts held under claim of
14  right for the taxable year pursuant to Section 1341 of
15  the Internal Revenue Code;
16  (O) For taxable years 2001 and thereafter, for the
17  taxable year in which the bonus depreciation deduction
18  is taken on the taxpayer's federal income tax return
19  under subsection (k) of Section 168 of the Internal
20  Revenue Code and for each applicable taxable year
21  thereafter, an amount equal to "x", where:
22  (1) "y" equals the amount of the depreciation
23  deduction taken for the taxable year on the
24  taxpayer's federal income tax return on property
25  for which the bonus depreciation deduction was
26  taken in any year under subsection (k) of Section

 

 

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1  168 of the Internal Revenue Code, but not
2  including the bonus depreciation deduction;
3  (2) for taxable years ending on or before
4  December 31, 2005, "x" equals "y" multiplied by 30
5  and then divided by 70 (or "y" multiplied by
6  0.429); and
7  (3) for taxable years ending after December
8  31, 2005:
9  (i) for property on which a bonus
10  depreciation deduction of 30% of the adjusted
11  basis was taken, "x" equals "y" multiplied by
12  30 and then divided by 70 (or "y" multiplied
13  by 0.429);
14  (ii) for property on which a bonus
15  depreciation deduction of 50% of the adjusted
16  basis was taken, "x" equals "y" multiplied by
17  1.0;
18  (iii) for property on which a bonus
19  depreciation deduction of 100% of the adjusted
20  basis was taken in a taxable year ending on or
21  after December 31, 2021, "x" equals the
22  depreciation deduction that would be allowed
23  on that property if the taxpayer had made the
24  election under Section 168(k)(7) of the
25  Internal Revenue Code to not claim bonus
26  depreciation on that property; and

 

 

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1  (iv) for property on which a bonus
2  depreciation deduction of a percentage other
3  than 30%, 50% or 100% of the adjusted basis
4  was taken in a taxable year ending on or after
5  December 31, 2021, "x" equals "y" multiplied
6  by 100 times the percentage bonus depreciation
7  on the property (that is, 100(bonus%)) and
8  then divided by 100 times 1 minus the
9  percentage bonus depreciation on the property
10  (that is, 100(1bonus%)).
11  The aggregate amount deducted under this
12  subparagraph in all taxable years for any one piece of
13  property may not exceed the amount of the bonus
14  depreciation deduction taken on that property on the
15  taxpayer's federal income tax return under subsection
16  (k) of Section 168 of the Internal Revenue Code. This
17  subparagraph (O) is exempt from the provisions of
18  Section 250;
19  (P) If the taxpayer sells, transfers, abandons, or
20  otherwise disposes of property for which the taxpayer
21  was required in any taxable year to make an addition
22  modification under subparagraph (D-5), then an amount
23  equal to that addition modification.
24  If the taxpayer continues to own property through
25  the last day of the last tax year for which a
26  subtraction is allowed with respect to that property

 

 

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1  under subparagraph (O) and for which the taxpayer was
2  required in any taxable year to make an addition
3  modification under subparagraph (D-5), then an amount
4  equal to that addition modification.
5  The taxpayer is allowed to take the deduction
6  under this subparagraph only once with respect to any
7  one piece of property.
8  This subparagraph (P) is exempt from the
9  provisions of Section 250;
10  (Q) The amount of (i) any interest income (net of
11  the deductions allocable thereto) taken into account
12  for the taxable year with respect to a transaction
13  with a taxpayer that is required to make an addition
14  modification with respect to such transaction under
15  Section 203(a)(2)(D-17), 203(b)(2)(E-12),
16  203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
17  the amount of such addition modification and (ii) any
18  income from intangible property (net of the deductions
19  allocable thereto) taken into account for the taxable
20  year with respect to a transaction with a taxpayer
21  that is required to make an addition modification with
22  respect to such transaction under Section
23  203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
24  203(d)(2)(D-8), but not to exceed the amount of such
25  addition modification. This subparagraph (Q) is exempt
26  from Section 250;

 

 

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1  (R) An amount equal to the interest income taken
2  into account for the taxable year (net of the
3  deductions allocable thereto) with respect to
4  transactions with (i) a foreign person who would be a
5  member of the taxpayer's unitary business group but
6  for the fact that the foreign person's business
7  activity outside the United States is 80% or more of
8  that person's total business activity and (ii) for
9  taxable years ending on or after December 31, 2008, to
10  a person who would be a member of the same unitary
11  business group but for the fact that the person is
12  prohibited under Section 1501(a)(27) from being
13  included in the unitary business group because he or
14  she is ordinarily required to apportion business
15  income under different subsections of Section 304, but
16  not to exceed the addition modification required to be
17  made for the same taxable year under Section
18  203(d)(2)(D-7) for interest paid, accrued, or
19  incurred, directly or indirectly, to the same person.
20  This subparagraph (R) is exempt from Section 250;
21  (S) An amount equal to the income from intangible
22  property taken into account for the taxable year (net
23  of the deductions allocable thereto) with respect to
24  transactions with (i) a foreign person who would be a
25  member of the taxpayer's unitary business group but
26  for the fact that the foreign person's business

 

 

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1  activity outside the United States is 80% or more of
2  that person's total business activity and (ii) for
3  taxable years ending on or after December 31, 2008, to
4  a person who would be a member of the same unitary
5  business group but for the fact that the person is
6  prohibited under Section 1501(a)(27) from being
7  included in the unitary business group because he or
8  she is ordinarily required to apportion business
9  income under different subsections of Section 304, but
10  not to exceed the addition modification required to be
11  made for the same taxable year under Section
12  203(d)(2)(D-8) for intangible expenses and costs paid,
13  accrued, or incurred, directly or indirectly, to the
14  same person. This subparagraph (S) is exempt from
15  Section 250; and
16  (T) For taxable years ending on or after December
17  31, 2011, in the case of a taxpayer who was required to
18  add back any insurance premiums under Section
19  203(d)(2)(D-9), such taxpayer may elect to subtract
20  that part of a reimbursement received from the
21  insurance company equal to the amount of the expense
22  or loss (including expenses incurred by the insurance
23  company) that would have been taken into account as a
24  deduction for federal income tax purposes if the
25  expense or loss had been uninsured. If a taxpayer
26  makes the election provided for by this subparagraph

 

 

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1  (T), the insurer to which the premiums were paid must
2  add back to income the amount subtracted by the
3  taxpayer pursuant to this subparagraph (T). This
4  subparagraph (T) is exempt from the provisions of
5  Section 250.
6  (e) Gross income; adjusted gross income; taxable income.
7  (1) In general. Subject to the provisions of paragraph
8  (2) and subsection (b)(3), for purposes of this Section
9  and Section 803(e), a taxpayer's gross income, adjusted
10  gross income, or taxable income for the taxable year shall
11  mean the amount of gross income, adjusted gross income or
12  taxable income properly reportable for federal income tax
13  purposes for the taxable year under the provisions of the
14  Internal Revenue Code. Taxable income may be less than
15  zero. However, for taxable years ending on or after
16  December 31, 1986, net operating loss carryforwards from
17  taxable years ending prior to December 31, 1986, may not
18  exceed the sum of federal taxable income for the taxable
19  year before net operating loss deduction, plus the excess
20  of addition modifications over subtraction modifications
21  for the taxable year. For taxable years ending prior to
22  December 31, 1986, taxable income may never be an amount
23  in excess of the net operating loss for the taxable year as
24  defined in subsections (c) and (d) of Section 172 of the
25  Internal Revenue Code, provided that when taxable income

 

 

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1  of a corporation (other than a Subchapter S corporation),
2  trust, or estate is less than zero and addition
3  modifications, other than those provided by subparagraph
4  (E) of paragraph (2) of subsection (b) for corporations or
5  subparagraph (E) of paragraph (2) of subsection (c) for
6  trusts and estates, exceed subtraction modifications, an
7  addition modification must be made under those
8  subparagraphs for any other taxable year to which the
9  taxable income less than zero (net operating loss) is
10  applied under Section 172 of the Internal Revenue Code or
11  under subparagraph (E) of paragraph (2) of this subsection
12  (e) applied in conjunction with Section 172 of the
13  Internal Revenue Code.
14  (2) Special rule. For purposes of paragraph (1) of
15  this subsection, the taxable income properly reportable
16  for federal income tax purposes shall mean:
17  (A) Certain life insurance companies. In the case
18  of a life insurance company subject to the tax imposed
19  by Section 801 of the Internal Revenue Code, life
20  insurance company taxable income, plus the amount of
21  distribution from pre-1984 policyholder surplus
22  accounts as calculated under Section 815a of the
23  Internal Revenue Code;
24  (B) Certain other insurance companies. In the case
25  of mutual insurance companies subject to the tax
26  imposed by Section 831 of the Internal Revenue Code,

 

 

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1  insurance company taxable income;
2  (C) Regulated investment companies. In the case of
3  a regulated investment company subject to the tax
4  imposed by Section 852 of the Internal Revenue Code,
5  investment company taxable income;
6  (D) Real estate investment trusts. In the case of
7  a real estate investment trust subject to the tax
8  imposed by Section 857 of the Internal Revenue Code,
9  real estate investment trust taxable income;
10  (E) Consolidated corporations. In the case of a
11  corporation which is a member of an affiliated group
12  of corporations filing a consolidated income tax
13  return for the taxable year for federal income tax
14  purposes, taxable income determined as if such
15  corporation had filed a separate return for federal
16  income tax purposes for the taxable year and each
17  preceding taxable year for which it was a member of an
18  affiliated group. For purposes of this subparagraph,
19  the taxpayer's separate taxable income shall be
20  determined as if the election provided by Section
21  243(b)(2) of the Internal Revenue Code had been in
22  effect for all such years;
23  (F) Cooperatives. In the case of a cooperative
24  corporation or association, the taxable income of such
25  organization determined in accordance with the
26  provisions of Section 1381 through 1388 of the

 

 

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1  Internal Revenue Code, but without regard to the
2  prohibition against offsetting losses from patronage
3  activities against income from nonpatronage
4  activities; except that a cooperative corporation or
5  association may make an election to follow its federal
6  income tax treatment of patronage losses and
7  nonpatronage losses. In the event such election is
8  made, such losses shall be computed and carried over
9  in a manner consistent with subsection (a) of Section
10  207 of this Act and apportioned by the apportionment
11  factor reported by the cooperative on its Illinois
12  income tax return filed for the taxable year in which
13  the losses are incurred. The election shall be
14  effective for all taxable years with original returns
15  due on or after the date of the election. In addition,
16  the cooperative may file an amended return or returns,
17  as allowed under this Act, to provide that the
18  election shall be effective for losses incurred or
19  carried forward for taxable years occurring prior to
20  the date of the election. Once made, the election may
21  only be revoked upon approval of the Director. The
22  Department shall adopt rules setting forth
23  requirements for documenting the elections and any
24  resulting Illinois net loss and the standards to be
25  used by the Director in evaluating requests to revoke
26  elections. Public Act 96-932 is declaratory of

 

 

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1  existing law;
2  (G) Subchapter S corporations. In the case of: (i)
3  a Subchapter S corporation for which there is in
4  effect an election for the taxable year under Section
5  1362 of the Internal Revenue Code, the taxable income
6  of such corporation determined in accordance with
7  Section 1363(b) of the Internal Revenue Code, except
8  that taxable income shall take into account those
9  items which are required by Section 1363(b)(1) of the
10  Internal Revenue Code to be separately stated; and
11  (ii) a Subchapter S corporation for which there is in
12  effect a federal election to opt out of the provisions
13  of the Subchapter S Revision Act of 1982 and have
14  applied instead the prior federal Subchapter S rules
15  as in effect on July 1, 1982, the taxable income of
16  such corporation determined in accordance with the
17  federal Subchapter S rules as in effect on July 1,
18  1982; and
19  (H) Partnerships. In the case of a partnership,
20  taxable income determined in accordance with Section
21  703 of the Internal Revenue Code, except that taxable
22  income shall take into account those items which are
23  required by Section 703(a)(1) to be separately stated
24  but which would be taken into account by an individual
25  in calculating his taxable income.
26  (3) Recapture of business expenses on disposition of

 

 

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1  asset or business. Notwithstanding any other law to the
2  contrary, if in prior years income from an asset or
3  business has been classified as business income and in a
4  later year is demonstrated to be non-business income, then
5  all expenses, without limitation, deducted in such later
6  year and in the 2 immediately preceding taxable years
7  related to that asset or business that generated the
8  non-business income shall be added back and recaptured as
9  business income in the year of the disposition of the
10  asset or business. Such amount shall be apportioned to
11  Illinois using the greater of the apportionment fraction
12  computed for the business under Section 304 of this Act
13  for the taxable year or the average of the apportionment
14  fractions computed for the business under Section 304 of
15  this Act for the taxable year and for the 2 immediately
16  preceding taxable years.
17  (f) Valuation limitation amount.
18  (1) In general. The valuation limitation amount
19  referred to in subsections (a)(2)(G), (c)(2)(I) and
20  (d)(2)(E) is an amount equal to:
21  (A) The sum of the pre-August 1, 1969 appreciation
22  amounts (to the extent consisting of gain reportable
23  under the provisions of Section 1245 or 1250 of the
24  Internal Revenue Code) for all property in respect of
25  which such gain was reported for the taxable year;

 

 

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1  plus
2  (B) The lesser of (i) the sum of the pre-August 1,
3  1969 appreciation amounts (to the extent consisting of
4  capital gain) for all property in respect of which
5  such gain was reported for federal income tax purposes
6  for the taxable year, or (ii) the net capital gain for
7  the taxable year, reduced in either case by any amount
8  of such gain included in the amount determined under
9  subsection (a)(2)(F) or (c)(2)(H).
10  (2) Pre-August 1, 1969 appreciation amount.
11  (A) If the fair market value of property referred
12  to in paragraph (1) was readily ascertainable on
13  August 1, 1969, the pre-August 1, 1969 appreciation
14  amount for such property is the lesser of (i) the
15  excess of such fair market value over the taxpayer's
16  basis (for determining gain) for such property on that
17  date (determined under the Internal Revenue Code as in
18  effect on that date), or (ii) the total gain realized
19  and reportable for federal income tax purposes in
20  respect of the sale, exchange or other disposition of
21  such property.
22  (B) If the fair market value of property referred
23  to in paragraph (1) was not readily ascertainable on
24  August 1, 1969, the pre-August 1, 1969 appreciation
25  amount for such property is that amount which bears
26  the same ratio to the total gain reported in respect of

 

 

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1  the property for federal income tax purposes for the
2  taxable year, as the number of full calendar months in
3  that part of the taxpayer's holding period for the
4  property ending July 31, 1969 bears to the number of
5  full calendar months in the taxpayer's entire holding
6  period for the property.
7  (C) The Department shall prescribe such
8  regulations as may be necessary to carry out the
9  purposes of this paragraph.
10  (g) Double deductions. Unless specifically provided
11  otherwise, nothing in this Section shall permit the same item
12  to be deducted more than once.
13  (h) Legislative intention. Except as expressly provided by
14  this Section there shall be no modifications or limitations on
15  the amounts of income, gain, loss or deduction taken into
16  account in determining gross income, adjusted gross income or
17  taxable income for federal income tax purposes for the taxable
18  year, or in the amount of such items entering into the
19  computation of base income and net income under this Act for
20  such taxable year, whether in respect of property values as of
21  August 1, 1969 or otherwise.
22  (Source: P.A. 101-9, eff. 6-5-19; 101-81, eff. 7-12-19;
23  102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658, eff.
24  8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. 12-21-22.)

 

 

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1  (35 ILCS 5/901)
2  Sec. 901. Collection authority.
3  (a) In general. The Department shall collect the taxes
4  imposed by this Act. The Department shall collect certified
5  past due child support amounts under Section 2505-650 of the
6  Department of Revenue Law of the Civil Administrative Code of
7  Illinois. Except as provided in subsections (b), (c), (e),
8  (f), (g), and (h) of this Section, money collected pursuant to
9  subsections (a) and (b) of Section 201 of this Act shall be
10  paid into the General Revenue Fund in the State treasury;
11  money collected pursuant to subsections (c) and (d) of Section
12  201 of this Act shall be paid into the Personal Property Tax
13  Replacement Fund, a special fund in the State Treasury; and
14  money collected under Section 2505-650 of the Department of
15  Revenue Law of the Civil Administrative Code of Illinois shall
16  be paid into the Child Support Enforcement Trust Fund, a
17  special fund outside the State Treasury, or to the State
18  Disbursement Unit established under Section 10-26 of the
19  Illinois Public Aid Code, as directed by the Department of
20  Healthcare and Family Services.
21  (b) Local Government Distributive Fund. Beginning August
22  1, 2017 and continuing through July 31, 2022, the Treasurer
23  shall transfer each month from the General Revenue Fund to the
24  Local Government Distributive Fund an amount equal to the sum
25  of: (i) 6.06% (10% of the ratio of the 3% individual income tax

 

 

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1  rate prior to 2011 to the 4.95% individual income tax rate
2  after July 1, 2017) of the net revenue realized from the tax
3  imposed by subsections (a) and (b) of Section 201 of this Act
4  upon individuals, trusts, and estates during the preceding
5  month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
6  income tax rate prior to 2011 to the 7% corporate income tax
7  rate after July 1, 2017) of the net revenue realized from the
8  tax imposed by subsections (a) and (b) of Section 201 of this
9  Act upon corporations during the preceding month; and (iii)
10  beginning February 1, 2022, 6.06% of the net revenue realized
11  from the tax imposed by subsection (p) of Section 201 of this
12  Act upon electing pass-through entities. Beginning August 1,
13  2022, the Treasurer shall transfer each month from the General
14  Revenue Fund to the Local Government Distributive Fund an
15  amount equal to the sum of: (i) 6.16% of the net revenue
16  realized from the tax imposed by subsections (a) and (b) of
17  Section 201 of this Act upon individuals, trusts, and estates
18  during the preceding month; (ii) 6.85% of the net revenue
19  realized from the tax imposed by subsections (a) and (b) of
20  Section 201 of this Act upon corporations during the preceding
21  month; and (iii) 6.16% of the net revenue realized from the tax
22  imposed by subsection (p) of Section 201 of this Act upon
23  electing pass-through entities. Net revenue realized for a
24  month shall be defined as the revenue from the tax imposed by
25  subsections (a) and (b) of Section 201 of this Act which is
26  deposited in the General Revenue Fund, the Education

 

 

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1  Assistance Fund, the Income Tax Surcharge Local Government
2  Distributive Fund, the Fund for the Advancement of Education,
3  and the Commitment to Human Services Fund during the month
4  minus the amount paid out of the General Revenue Fund in State
5  warrants during that same month as refunds to taxpayers for
6  overpayment of liability under the tax imposed by subsections
7  (a) and (b) of Section 201 of this Act.
8  Notwithstanding any provision of law to the contrary,
9  beginning on July 6, 2017 (the effective date of Public Act
10  100-23), those amounts required under this subsection (b) to
11  be transferred by the Treasurer into the Local Government
12  Distributive Fund from the General Revenue Fund shall be
13  directly deposited into the Local Government Distributive Fund
14  as the revenue is realized from the tax imposed by subsections
15  (a) and (b) of Section 201 of this Act.
16  (c) Deposits Into Income Tax Refund Fund.
17  (1) Beginning on January 1, 1989 and thereafter, the
18  Department shall deposit a percentage of the amounts
19  collected pursuant to subsections (a) and (b)(1), (2), and
20  (3) of Section 201 of this Act into a fund in the State
21  treasury known as the Income Tax Refund Fund. Beginning
22  with State fiscal year 1990 and for each fiscal year
23  thereafter, the percentage deposited into the Income Tax
24  Refund Fund during a fiscal year shall be the Annual
25  Percentage. For fiscal year 2011, the Annual Percentage
26  shall be 8.75%. For fiscal year 2012, the Annual

 

 

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1  Percentage shall be 8.75%. For fiscal year 2013, the
2  Annual Percentage shall be 9.75%. For fiscal year 2014,
3  the Annual Percentage shall be 9.5%. For fiscal year 2015,
4  the Annual Percentage shall be 10%. For fiscal year 2018,
5  the Annual Percentage shall be 9.8%. For fiscal year 2019,
6  the Annual Percentage shall be 9.7%. For fiscal year 2020,
7  the Annual Percentage shall be 9.5%. For fiscal year 2021,
8  the Annual Percentage shall be 9%. For fiscal year 2022,
9  the Annual Percentage shall be 9.25%. For fiscal year
10  2023, the Annual Percentage shall be 9.25%. For all other
11  fiscal years, the Annual Percentage shall be calculated as
12  a fraction, the numerator of which shall be the amount of
13  refunds approved for payment by the Department during the
14  preceding fiscal year as a result of overpayment of tax
15  liability under subsections (a) and (b)(1), (2), and (3)
16  of Section 201 of this Act plus the amount of such refunds
17  remaining approved but unpaid at the end of the preceding
18  fiscal year, minus the amounts transferred into the Income
19  Tax Refund Fund from the Tobacco Settlement Recovery Fund,
20  and the denominator of which shall be the amounts which
21  will be collected pursuant to subsections (a) and (b)(1),
22  (2), and (3) of Section 201 of this Act during the
23  preceding fiscal year; except that in State fiscal year
24  2002, the Annual Percentage shall in no event exceed 7.6%.
25  The Director of Revenue shall certify the Annual
26  Percentage to the Comptroller on the last business day of

 

 

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1  the fiscal year immediately preceding the fiscal year for
2  which it is to be effective.
3  (2) Beginning on January 1, 1989 and thereafter, the
4  Department shall deposit a percentage of the amounts
5  collected pursuant to subsections (a) and (b)(6), (7), and
6  (8), (c) and (d) of Section 201 of this Act into a fund in
7  the State treasury known as the Income Tax Refund Fund.
8  Beginning with State fiscal year 1990 and for each fiscal
9  year thereafter, the percentage deposited into the Income
10  Tax Refund Fund during a fiscal year shall be the Annual
11  Percentage. For fiscal year 2011, the Annual Percentage
12  shall be 17.5%. For fiscal year 2012, the Annual
13  Percentage shall be 17.5%. For fiscal year 2013, the
14  Annual Percentage shall be 14%. For fiscal year 2014, the
15  Annual Percentage shall be 13.4%. For fiscal year 2015,
16  the Annual Percentage shall be 14%. For fiscal year 2018,
17  the Annual Percentage shall be 17.5%. For fiscal year
18  2019, the Annual Percentage shall be 15.5%. For fiscal
19  year 2020, the Annual Percentage shall be 14.25%. For
20  fiscal year 2021, the Annual Percentage shall be 14%. For
21  fiscal year 2022, the Annual Percentage shall be 15%. For
22  fiscal year 2023, the Annual Percentage shall be 14.5%.
23  For all other fiscal years, the Annual Percentage shall be
24  calculated as a fraction, the numerator of which shall be
25  the amount of refunds approved for payment by the
26  Department during the preceding fiscal year as a result of

 

 

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1  overpayment of tax liability under subsections (a) and
2  (b)(6), (7), and (8), (c) and (d) of Section 201 of this
3  Act plus the amount of such refunds remaining approved but
4  unpaid at the end of the preceding fiscal year, and the
5  denominator of which shall be the amounts which will be
6  collected pursuant to subsections (a) and (b)(6), (7), and
7  (8), (c) and (d) of Section 201 of this Act during the
8  preceding fiscal year; except that in State fiscal year
9  2002, the Annual Percentage shall in no event exceed 23%.
10  The Director of Revenue shall certify the Annual
11  Percentage to the Comptroller on the last business day of
12  the fiscal year immediately preceding the fiscal year for
13  which it is to be effective.
14  (3) The Comptroller shall order transferred and the
15  Treasurer shall transfer from the Tobacco Settlement
16  Recovery Fund to the Income Tax Refund Fund (i)
17  $35,000,000 in January, 2001, (ii) $35,000,000 in January,
18  2002, and (iii) $35,000,000 in January, 2003.
19  (d) Expenditures from Income Tax Refund Fund.
20  (1) Beginning January 1, 1989, money in the Income Tax
21  Refund Fund shall be expended exclusively for the purpose
22  of paying refunds resulting from overpayment of tax
23  liability under Section 201 of this Act and for making
24  transfers pursuant to this subsection (d), except that in
25  State fiscal years 2022 and 2023, moneys in the Income Tax
26  Refund Fund shall also be used to pay one-time rebate

 

 

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1  payments as provided under Sections 208.5 and 212.1.
2  (2) The Director shall order payment of refunds
3  resulting from overpayment of tax liability under Section
4  201 of this Act from the Income Tax Refund Fund only to the
5  extent that amounts collected pursuant to Section 201 of
6  this Act and transfers pursuant to this subsection (d) and
7  item (3) of subsection (c) have been deposited and
8  retained in the Fund.
9  (3) As soon as possible after the end of each fiscal
10  year, the Director shall order transferred and the State
11  Treasurer and State Comptroller shall transfer from the
12  Income Tax Refund Fund to the Personal Property Tax
13  Replacement Fund an amount, certified by the Director to
14  the Comptroller, equal to the excess of the amount
15  collected pursuant to subsections (c) and (d) of Section
16  201 of this Act deposited into the Income Tax Refund Fund
17  during the fiscal year over the amount of refunds
18  resulting from overpayment of tax liability under
19  subsections (c) and (d) of Section 201 of this Act paid
20  from the Income Tax Refund Fund during the fiscal year.
21  (4) As soon as possible after the end of each fiscal
22  year, the Director shall order transferred and the State
23  Treasurer and State Comptroller shall transfer from the
24  Personal Property Tax Replacement Fund to the Income Tax
25  Refund Fund an amount, certified by the Director to the
26  Comptroller, equal to the excess of the amount of refunds

 

 

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1  resulting from overpayment of tax liability under
2  subsections (c) and (d) of Section 201 of this Act paid
3  from the Income Tax Refund Fund during the fiscal year
4  over the amount collected pursuant to subsections (c) and
5  (d) of Section 201 of this Act deposited into the Income
6  Tax Refund Fund during the fiscal year.
7  (4.5) As soon as possible after the end of fiscal year
8  1999 and of each fiscal year thereafter, the Director
9  shall order transferred and the State Treasurer and State
10  Comptroller shall transfer from the Income Tax Refund Fund
11  to the General Revenue Fund any surplus remaining in the
12  Income Tax Refund Fund as of the end of such fiscal year;
13  excluding for fiscal years 2000, 2001, and 2002 amounts
14  attributable to transfers under item (3) of subsection (c)
15  less refunds resulting from the earned income tax credit,
16  and excluding for fiscal year 2022 amounts attributable to
17  transfers from the General Revenue Fund authorized by
18  Public Act 102-700 this amendatory Act of the 102nd
19  General Assembly.
20  (5) This Act shall constitute an irrevocable and
21  continuing appropriation from the Income Tax Refund Fund
22  for the purposes of (i) paying refunds upon the order of
23  the Director in accordance with the provisions of this
24  Section and (ii) paying one-time rebate payments under
25  Sections 208.5 and 212.1.
26  (e) Deposits into the Education Assistance Fund and the

 

 

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1  Income Tax Surcharge Local Government Distributive Fund. On
2  July 1, 1991, and thereafter, of the amounts collected
3  pursuant to subsections (a) and (b) of Section 201 of this Act,
4  minus deposits into the Income Tax Refund Fund, the Department
5  shall deposit 7.3% into the Education Assistance Fund in the
6  State Treasury. Beginning July 1, 1991, and continuing through
7  January 31, 1993, of the amounts collected pursuant to
8  subsections (a) and (b) of Section 201 of the Illinois Income
9  Tax Act, minus deposits into the Income Tax Refund Fund, the
10  Department shall deposit 3.0% into the Income Tax Surcharge
11  Local Government Distributive Fund in the State Treasury.
12  Beginning February 1, 1993 and continuing through June 30,
13  1993, of the amounts collected pursuant to subsections (a) and
14  (b) of Section 201 of the Illinois Income Tax Act, minus
15  deposits into the Income Tax Refund Fund, the Department shall
16  deposit 4.4% into the Income Tax Surcharge Local Government
17  Distributive Fund in the State Treasury. Beginning July 1,
18  1993, and continuing through June 30, 1994, of the amounts
19  collected under subsections (a) and (b) of Section 201 of this
20  Act, minus deposits into the Income Tax Refund Fund, the
21  Department shall deposit 1.475% into the Income Tax Surcharge
22  Local Government Distributive Fund in the State Treasury.
23  (f) Deposits into the Fund for the Advancement of
24  Education. Beginning February 1, 2015, the Department shall
25  deposit the following portions of the revenue realized from
26  the tax imposed upon individuals, trusts, and estates by

 

 

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1  subsections (a) and (b) of Section 201 of this Act, minus
2  deposits into the Income Tax Refund Fund, into the Fund for the
3  Advancement of Education:
4  (1) beginning February 1, 2015, and prior to February
5  1, 2025, 1/30; and
6  (2) beginning February 1, 2025, 1/26.
7  If the rate of tax imposed by subsection (a) and (b) of
8  Section 201 is reduced pursuant to Section 201.5 of this Act,
9  the Department shall not make the deposits required by this
10  subsection (f) on or after the effective date of the
11  reduction.
12  (g) Deposits into the Commitment to Human Services Fund.
13  Beginning February 1, 2015, the Department shall deposit the
14  following portions of the revenue realized from the tax
15  imposed upon individuals, trusts, and estates by subsections
16  (a) and (b) of Section 201 of this Act, minus deposits into the
17  Income Tax Refund Fund, into the Commitment to Human Services
18  Fund:
19  (1) beginning February 1, 2015, and prior to February
20  1, 2025, 1/30; and
21  (2) beginning February 1, 2025, 1/26.
22  If the rate of tax imposed by subsection (a) and (b) of
23  Section 201 is reduced pursuant to Section 201.5 of this Act,
24  the Department shall not make the deposits required by this
25  subsection (g) on or after the effective date of the
26  reduction.

 

 

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1  (h) Deposits into the Tax Compliance and Administration
2  Fund. Beginning on the first day of the first calendar month to
3  occur on or after August 26, 2014 (the effective date of Public
4  Act 98-1098), each month the Department shall pay into the Tax
5  Compliance and Administration Fund, to be used, subject to
6  appropriation, to fund additional auditors and compliance
7  personnel at the Department, an amount equal to 1/12 of 5% of
8  the cash receipts collected during the preceding fiscal year
9  by the Audit Bureau of the Department from the tax imposed by
10  subsections (a), (b), (c), and (d) of Section 201 of this Act,
11  net of deposits into the Income Tax Refund Fund made from those
12  cash receipts.
13  (i) Notwithstanding any other provision of law, the tax
14  collected from gains realized under the Extremely High Wealth
15  Mark-to-Market Tax Act shall be deposited into the Working
16  Families Fund.
17  (Source: P.A. 101-8, see Section 99 for effective date;
18  101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-636, eff.
19  6-10-20; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658,
20  eff. 8-27-21; 102-699, eff. 4-19-22; 102-700, eff. 4-19-22;
21  102-813, eff. 5-13-22; revised 8-2-22.)
22  Section 999. Effective date. This Act takes effect upon
23  becoming law.

 

 

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