Illinois 2023-2024 Regular Session

Illinois House Bill HB3205 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3205 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 35 ILCS 5/207 from Ch. 120, par. 2-207 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 Amends the Illinois Income Tax Act. Makes changes concerning the federal depreciation deduction and net operating losses to restore provisions that were in effect prior to Public Act 102-16. Amends the Business Corporation Act of 1983. Provides that no franchise tax shall be imposed on foreign or domestic corporations on or after January 1, 2024, and repeals those provisions on January 1, 2025. Effective immediately. LRB103 28541 HLH 54922 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3205 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 35 ILCS 5/207 from Ch. 120, par. 2-207 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 35 ILCS 5/207 from Ch. 120, par. 2-207 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 Amends the Illinois Income Tax Act. Makes changes concerning the federal depreciation deduction and net operating losses to restore provisions that were in effect prior to Public Act 102-16. Amends the Business Corporation Act of 1983. Provides that no franchise tax shall be imposed on foreign or domestic corporations on or after January 1, 2024, and repeals those provisions on January 1, 2025. Effective immediately. LRB103 28541 HLH 54922 b LRB103 28541 HLH 54922 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3205 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/207 from Ch. 120, par. 2-207 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 35 ILCS 5/207 from Ch. 120, par. 2-207 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65
4	4	35 ILCS 5/207 from Ch. 120, par. 2-207
5	5	805 ILCS 5/15.35 from Ch. 32, par. 15.35
6	6	805 ILCS 5/15.65 from Ch. 32, par. 15.65
7	7	Amends the Illinois Income Tax Act. Makes changes concerning the federal depreciation deduction and net operating losses to restore provisions that were in effect prior to Public Act 102-16. Amends the Business Corporation Act of 1983. Provides that no franchise tax shall be imposed on foreign or domestic corporations on or after January 1, 2024, and repeals those provisions on January 1, 2025. Effective immediately.
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10	10	A BILL FOR
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13	13	1 AN ACT concerning revenue.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Illinois Income Tax Act is amended by
17	17	5 changing Section 207 as follows:
18	18	6 (35 ILCS 5/207) (from Ch. 120, par. 2-207)
19	19	7 Sec. 207. Net Losses.
20	20	8 (a) If after applying all of the (i) modifications
21	21	9 provided for in paragraph (2) of Section 203(b), paragraph (2)
22	22	10 of Section 203(c) and paragraph (2) of Section 203(d) and (ii)
23	23	11 the allocation and apportionment provisions of Article 3 of
24	24	12 this Act and subsection (c) of this Section, the taxpayer's
25	25	13 net income results in a loss;
26	26	14 (1) for any taxable year ending prior to December 31,
27	27	15 1999, such loss shall be allowed as a carryover or
28	28	16 carryback deduction in the manner allowed under Section
29	29	17 172 of the Internal Revenue Code;
30	30	18 (2) for any taxable year ending on or after December
31	31	19 31, 1999 and prior to December 31, 2003, such loss shall be
32	32	20 allowed as a carryback to each of the 2 taxable years
33	33	21 preceding the taxable year of such loss and shall be a net
34	34	22 operating loss carryover to each of the 20 taxable years
35	35	23 following the taxable year of such loss;
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39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3205 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
40	40	35 ILCS 5/207 from Ch. 120, par. 2-207 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 35 ILCS 5/207 from Ch. 120, par. 2-207 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65
41	41	35 ILCS 5/207 from Ch. 120, par. 2-207
42	42	805 ILCS 5/15.35 from Ch. 32, par. 15.35
43	43	805 ILCS 5/15.65 from Ch. 32, par. 15.65
44	44	Amends the Illinois Income Tax Act. Makes changes concerning the federal depreciation deduction and net operating losses to restore provisions that were in effect prior to Public Act 102-16. Amends the Business Corporation Act of 1983. Provides that no franchise tax shall be imposed on foreign or domestic corporations on or after January 1, 2024, and repeals those provisions on January 1, 2025. Effective immediately.
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46	46	LRB103 28541 HLH 54922 b
47	47	A BILL FOR
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53	53	35 ILCS 5/207 from Ch. 120, par. 2-207
54	54	805 ILCS 5/15.35 from Ch. 32, par. 15.35
55	55	805 ILCS 5/15.65 from Ch. 32, par. 15.65
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74	74	1 (3) for any taxable year ending on or after December
75	75	2 31, 2003 and prior to December 31, 2021, such loss shall be
76	76	3 allowed as a net operating loss carryover to each of the 12
77	77	4 taxable years following the taxable year of such loss,
78	78	5 except as provided in subsection (d); and
79	79	6 (4) for any taxable year ending on or after December
80	80	7 31, 2021, and for any net loss incurred in a taxable year
81	81	8 prior to a taxable year ending on or after December 31,
82	82	9 2021 for which the statute of limitation for utilization
83	83	10 of such net loss has not expired, such loss shall be
84	84	11 allowed as a net operating loss carryover to each of the 20
85	85	12 taxable years following the taxable year of such loss,
86	86	13 except as provided in subsection (d).
87	87	14 (a-5) Election to relinquish carryback and order of
88	88	15 application of losses.
89	89	16 (A) For losses incurred in tax years ending prior
90	90	17 to December 31, 2003, the taxpayer may elect to
91	91	18 relinquish the entire carryback period with respect to
92	92	19 such loss. Such election shall be made in the form and
93	93	20 manner prescribed by the Department and shall be made
94	94	21 by the due date (including extensions of time) for
95	95	22 filing the taxpayer's return for the taxable year in
96	96	23 which such loss is incurred, and such election, once
97	97	24 made, shall be irrevocable.
98	98	25 (B) The entire amount of such loss shall be
99	99	26 carried to the earliest taxable year to which such
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110	110	1 loss may be carried. The amount of such loss which
111	111	2 shall be carried to each of the other taxable years
112	112	3 shall be the excess, if any, of the amount of such loss
113	113	4 over the sum of the deductions for carryback or
114	114	5 carryover of such loss allowable for each of the prior
115	115	6 taxable years to which such loss may be carried.
116	116	7 (b) Any loss determined under subsection (a) of this
117	117	8 Section must be carried back or carried forward in the same
118	118	9 manner for purposes of subsections (a) and (b) of Section 201
119	119	10 of this Act as for purposes of subsections (c) and (d) of
120	120	11 Section 201 of this Act.
121	121	12 (c) Notwithstanding any other provision of this Act, for
122	122	13 each taxable year ending on or after December 31, 2008, for
123	123	14 purposes of computing the loss for the taxable year under
124	124	15 subsection (a) of this Section and the deduction taken into
125	125	16 account for the taxable year for a net operating loss
126	126	17 carryover under paragraphs (1), (2), and (3) of subsection (a)
127	127	18 of this Section, the loss and net operating loss carryover
128	128	19 shall be reduced in an amount equal to the reduction to the net
129	129	20 operating loss and net operating loss carryover to the taxable
130	130	21 year, respectively, required under Section 108(b)(2)(A) of the
131	131	22 Internal Revenue Code, multiplied by a fraction, the numerator
132	132	23 of which is the amount of discharge of indebtedness income
133	133	24 that is excluded from gross income for the taxable year (but
134	134	25 only if the taxable year ends on or after December 31, 2008)
135	135	26 under Section 108(a) of the Internal Revenue Code and that
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146	146	1 would have been allocated and apportioned to this State under
147	147	2 Article 3 of this Act but for that exclusion, and the
148	148	3 denominator of which is the total amount of discharge of
149	149	4 indebtedness income excluded from gross income under Section
150	150	5 108(a) of the Internal Revenue Code for the taxable year. The
151	151	6 reduction required under this subsection (c) shall be made
152	152	7 after the determination of Illinois net income for the taxable
153	153	8 year in which the indebtedness is discharged.
154	154	9 (d) In the case of a corporation (other than a Subchapter S
155	155	10 corporation), no carryover deduction shall be allowed under
156	156	11 this Section for any taxable year ending after December 31,
157	157	12 2010 and prior to December 31, 2012, and no carryover
158	158	13 deduction shall exceed $100,000 for any taxable year ending on
159	159	14 or after December 31, 2012 and prior to December 31, 2014 and
160	160	15 for any taxable year ending on or after December 31, 2021 and
161	161	16 before December 31, 2023 prior to December 31, 2024; provided
162	162	17 that, for purposes of determining the taxable years to which a
163	163	18 net loss may be carried under subsection (a) of this Section,
164	164	19 no taxable year for which a deduction is disallowed under this
165	165	20 subsection, or for which the deduction would exceed $100,000
166	166	21 if not for this subsection, shall be counted.
167	167	22 (e) In the case of a residual interest holder in a real
168	168	23 estate mortgage investment conduit subject to Section 860E of
169	169	24 the Internal Revenue Code, the net loss in subsection (a)
170	170	25 shall be equal to:
171	171	26 (1) the amount computed under subsection (a), without
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182	182	1 regard to this subsection (e), or if that amount is
183	183	2 positive, zero;
184	184	3 (2) minus an amount equal to the amount computed under
185	185	4 subsection (a), without regard to this subsection (e),
186	186	5 minus the amount that would be computed under subsection
187	187	6 (a) if the taxpayer's federal taxable income were computed
188	188	7 without regard to Section 860E of the Internal Revenue
189	189	8 Code and without regard to this subsection (e).
190	190	9 The modification in this subsection (e) is exempt from the
191	191	10 provisions of Section 250.
192	192	11 (Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21.)
193	193	12 Section 10. The Business Corporation Act of 1983 is
194	194	13 amended by changing Sections 15.35 and 15.65 as follows:
195	195	14 (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
196	196	15 (Text of Section from P.A. 102-16)
197	197	16 Sec. 15.35. Franchise taxes payable by domestic
198	198	17 corporations. For the privilege of exercising its franchises
199	199	18 in this State, each domestic corporation shall pay to the
200	200	19 Secretary of State the following franchise taxes, computed on
201	201	20 the basis, at the rates and for the periods prescribed in this
202	202	21 Act:
203	203	22 (a) An initial franchise tax at the time of filing its
204	204	23 first report of issuance of shares.
205	205	24 (b) An additional franchise tax at the time of filing
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216	216	1 (1) a report of the issuance of additional shares, or (2) a
217	217	2 report of an increase in paid-in capital without the
218	218	3 issuance of shares, or (3) an amendment to the articles of
219	219	4 incorporation or a report of cumulative changes in paid-in
220	220	5 capital, whenever any amendment or such report discloses
221	221	6 an increase in its paid-in capital over the amount thereof
222	222	7 last reported in any document, other than an annual
223	223	8 report, interim annual report or final transition annual
224	224	9 report required by this Act to be filed in the office of
225	225	10 the Secretary of State.
226	226	11 (c) An additional franchise tax at the time of filing
227	227	12 a report of paid-in capital following a statutory merger
228	228	13 or consolidation, which discloses that the paid-in capital
229	229	14 of the surviving or new corporation immediately after the
230	230	15 merger or consolidation is greater than the sum of the
231	231	16 paid-in capital of all of the merged or consolidated
232	232	17 corporations as last reported by them in any documents,
233	233	18 other than annual reports, required by this Act to be
234	234	19 filed in the office of the Secretary of State; and in
235	235	20 addition, the surviving or new corporation shall be liable
236	236	21 for a further additional franchise tax on the paid-in
237	237	22 capital of each of the merged or consolidated corporations
238	238	23 as last reported by them in any document, other than an
239	239	24 annual report, required by this Act to be filed with the
240	240	25 Secretary of State from their taxable year end to the next
241	241	26 succeeding anniversary month or, in the case of a
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252	252	1 corporation which has established an extended filing
253	253	2 month, the extended filing month of the surviving or new
254	254	3 corporation; however if the taxable year ends within the
255	255	4 2-month period immediately preceding the anniversary month
256	256	5 or, in the case of a corporation which has established an
257	257	6 extended filing month, the extended filing month of the
258	258	7 surviving or new corporation the tax will be computed to
259	259	8 the anniversary month or, in the case of a corporation
260	260	9 which has established an extended filing month, the
261	261	10 extended filing month of the surviving or new corporation
262	262	11 in the next succeeding calendar year.
263	263	12 (d) An annual franchise tax payable each year with the
264	264	13 annual report which the corporation is required by this
265	265	14 Act to file.
266	266	15 On or after January 1, 2020 and prior to January 1, 2021,
267	267	16 the first $30 in liability is exempt from the tax imposed under
268	268	17 this Section. On or after January 1, 2021 and prior to January
269	269	18 1, 2024, the first $1,000 in liability is exempt from the tax
270	270	19 imposed under this Section. The provisions of this Section
271	271	20 shall not require the payment of any franchise tax that would
272	272	21 otherwise have been due and payable on or after January 1,
273	273	22 2024. There shall be no refunds or proration of franchise tax
274	274	23 for any taxes due and payable on or after January 1, 2024 on
275	275	24 the basis that a portion of the corporation's taxable year
276	276	25 extends beyond January 1, 2024. Public Act 101-9 shall not
277	277	26 affect any right accrued or established, or any liability or
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288	288	1 penalty incurred, prior to January 1, 2024.
289	289	2 This Section is repealed on January 1, 2025.
290	290	3 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21.)
291	291	4 (Text of Section from P.A. 102-282)
292	292	5 Sec. 15.35. Franchise taxes payable by domestic
293	293	6 corporations. For the privilege of exercising its franchises
294	294	7 in this State, each domestic corporation shall pay to the
295	295	8 Secretary of State the following franchise taxes, computed on
296	296	9 the basis, at the rates and for the periods prescribed in this
297	297	10 Act:
298	298	11 (a) An initial franchise tax at the time of filing its
299	299	12 first report of issuance of shares.
300	300	13 (b) An additional franchise tax at the time of filing
301	301	14 (1) a report of the issuance of additional shares, or (2) a
302	302	15 report of an increase in paid-in capital without the
303	303	16 issuance of shares, or (3) an amendment to the articles of
304	304	17 incorporation or a report of cumulative changes in paid-in
305	305	18 capital, whenever any amendment or such report discloses
306	306	19 an increase in its paid-in capital over the amount thereof
307	307	20 last reported in any document, other than an annual
308	308	21 report, interim annual report or final transition annual
309	309	22 report required by this Act to be filed in the office of
310	310	23 the Secretary of State.
311	311	24 (c) An additional franchise tax at the time of filing
312	312	25 a report of paid-in capital following a statutory merger
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323	323	1 or consolidation, which discloses that the paid-in capital
324	324	2 of the surviving or new corporation immediately after the
325	325	3 merger or consolidation is greater than the sum of the
326	326	4 paid-in capital of all of the merged or consolidated
327	327	5 corporations as last reported by them in any documents,
328	328	6 other than annual reports, required by this Act to be
329	329	7 filed in the office of the Secretary of State; and in
330	330	8 addition, the surviving or new corporation shall be liable
331	331	9 for a further additional franchise tax on the paid-in
332	332	10 capital of each of the merged or consolidated corporations
333	333	11 as last reported by them in any document, other than an
334	334	12 annual report, required by this Act to be filed with the
335	335	13 Secretary of State from their taxable year end to the next
336	336	14 succeeding anniversary month or, in the case of a
337	337	15 corporation which has established an extended filing
338	338	16 month, the extended filing month of the surviving or new
339	339	17 corporation; however if the taxable year ends within the
340	340	18 2-month period immediately preceding the anniversary month
341	341	19 or, in the case of a corporation which has established an
342	342	20 extended filing month, the extended filing month of the
343	343	21 surviving or new corporation the tax will be computed to
344	344	22 the anniversary month or, in the case of a corporation
345	345	23 which has established an extended filing month, the
346	346	24 extended filing month of the surviving or new corporation
347	347	25 in the next succeeding calendar year.
348	348	26 (d) An annual franchise tax payable each year with the
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359	359	1 annual report which the corporation is required by this
360	360	2 Act to file.
361	361	3 On or after January 1, 2020 and prior to January 1, 2021,
362	362	4 the first $30 in liability is exempt from the tax imposed under
363	363	5 this Section. On or after January 1, 2021 and prior to January
364	364	6 1, 2022, the first $1,000 in liability is exempt from the tax
365	365	7 imposed under this Section. On or after January 1, 2022 and
366	366	8 prior to January 1, 2023, the first $10,000 in liability is
367	367	9 exempt from the tax imposed under this Section. On or after
368	368	10 January 1, 2023 and prior to January 1, 2024, the first
369	369	11 $100,000 in liability is exempt from the tax imposed under
370	370	12 this Section. The provisions of this Section shall not require
371	371	13 the payment of any franchise tax that would otherwise have
372	372	14 been due and payable on or after January 1, 2024. There shall
373	373	15 be no refunds or proration of franchise tax for any taxes due
374	374	16 and payable on or after January 1, 2024 on the basis that a
375	375	17 portion of the corporation's taxable year extends beyond
376	376	18 January 1, 2024. Public Act 101-9 shall not affect any right
377	377	19 accrued or established, or any liability or penalty incurred
378	378	20 prior to January 1, 2024.
379	379	21 This Section is repealed on January 1, 2025 December 31,
380	380	22 2024.
381	381	23 (Source: P.A. 101-9, eff. 6-5-19; 102-282, eff. 1-1-22.)
382	382	24 (Text of Section from P.A. 102-558)
383	383	25 Sec. 15.35. Franchise taxes payable by domestic
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394	394	1 corporations. For the privilege of exercising its franchises
395	395	2 in this State, each domestic corporation shall pay to the
396	396	3 Secretary of State the following franchise taxes, computed on
397	397	4 the basis, at the rates and for the periods prescribed in this
398	398	5 Act:
399	399	6 (a) An initial franchise tax at the time of filing its
400	400	7 first report of issuance of shares.
401	401	8 (b) An additional franchise tax at the time of filing
402	402	9 (1) a report of the issuance of additional shares, or (2) a
403	403	10 report of an increase in paid-in capital without the
404	404	11 issuance of shares, or (3) an amendment to the articles of
405	405	12 incorporation or a report of cumulative changes in paid-in
406	406	13 capital, whenever any amendment or such report discloses
407	407	14 an increase in its paid-in capital over the amount thereof
408	408	15 last reported in any document, other than an annual
409	409	16 report, interim annual report or final transition annual
410	410	17 report required by this Act to be filed in the office of
411	411	18 the Secretary of State.
412	412	19 (c) An additional franchise tax at the time of filing
413	413	20 a report of paid-in capital following a statutory merger
414	414	21 or consolidation, which discloses that the paid-in capital
415	415	22 of the surviving or new corporation immediately after the
416	416	23 merger or consolidation is greater than the sum of the
417	417	24 paid-in capital of all of the merged or consolidated
418	418	25 corporations as last reported by them in any documents,
419	419	26 other than annual reports, required by this Act to be
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430	430	1 filed in the office of the Secretary of State; and in
431	431	2 addition, the surviving or new corporation shall be liable
432	432	3 for a further additional franchise tax on the paid-in
433	433	4 capital of each of the merged or consolidated corporations
434	434	5 as last reported by them in any document, other than an
435	435	6 annual report, required by this Act to be filed with the
436	436	7 Secretary of State from their taxable year end to the next
437	437	8 succeeding anniversary month or, in the case of a
438	438	9 corporation which has established an extended filing
439	439	10 month, the extended filing month of the surviving or new
440	440	11 corporation; however if the taxable year ends within the
441	441	12 2-month period immediately preceding the anniversary month
442	442	13 or, in the case of a corporation which has established an
443	443	14 extended filing month, the extended filing month of the
444	444	15 surviving or new corporation the tax will be computed to
445	445	16 the anniversary month or, in the case of a corporation
446	446	17 which has established an extended filing month, the
447	447	18 extended filing month of the surviving or new corporation
448	448	19 in the next succeeding calendar year.
449	449	20 (d) An annual franchise tax payable each year with the
450	450	21 annual report which the corporation is required by this
451	451	22 Act to file.
452	452	23 On or after January 1, 2020 and prior to January 1, 2021,
453	453	24 the first $30 in liability is exempt from the tax imposed under
454	454	25 this Section. On or after January 1, 2021 and prior to January
455	455	26 1, 2022, the first $1,000 in liability is exempt from the tax
456	456
457	457
458	458
459	459
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462	462
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466	466	1 imposed under this Section. On or after January 1, 2022 and
467	467	2 prior to January 1, 2023, the first $10,000 in liability is
468	468	3 exempt from the tax imposed under this Section. On or after
469	469	4 January 1, 2023 and prior to January 1, 2024, the first
470	470	5 $100,000 in liability is exempt from the tax imposed under
471	471	6 this Section. The provisions of this Section shall not require
472	472	7 the payment of any franchise tax that would otherwise have
473	473	8 been due and payable on or after January 1, 2024. There shall
474	474	9 be no refunds or proration of franchise tax for any taxes due
475	475	10 and payable on or after January 1, 2024 on the basis that a
476	476	11 portion of the corporation's taxable year extends beyond
477	477	12 January 1, 2024. Public Act 101-9 shall not affect any right
478	478	13 accrued or established, or any liability or penalty incurred
479	479	14 prior to January 1, 2024.
480	480	15 This Section is repealed on January 1, 2025 December 31,
481	481	16 2025.
482	482	17 (Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
483	483	18 (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
484	484	19 Sec. 15.65. Franchise taxes payable by foreign
485	485	20 corporations. For the privilege of exercising its authority to
486	486	21 transact such business in this State as set out in its
487	487	22 application therefor or any amendment thereto, each foreign
488	488	23 corporation shall pay to the Secretary of State the following
489	489	24 franchise taxes, computed on the basis, at the rates and for
490	490	25 the periods prescribed in this Act:
491	491
492	492
493	493
494	494
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501	501	1 (a) An initial franchise tax at the time of filing its
502	502	2 application for authority to transact business in this
503	503	3 State.
504	504	4 (b) An additional franchise tax at the time of filing
505	505	5 (1) a report of the issuance of additional shares, or (2) a
506	506	6 report of an increase in paid-in capital without the
507	507	7 issuance of shares, or (3) a report of cumulative changes
508	508	8 in paid-in capital or a report of an exchange or
509	509	9 reclassification of shares, whenever any such report
510	510	10 discloses an increase in its paid-in capital over the
511	511	11 amount thereof last reported in any document, other than
512	512	12 an annual report, interim annual report or final
513	513	13 transition annual report, required by this Act to be filed
514	514	14 in the office of the Secretary of State.
515	515	15 (c) Whenever the corporation shall be a party to a
516	516	16 statutory merger and shall be the surviving corporation,
517	517	17 an additional franchise tax at the time of filing its
518	518	18 report following merger, if such report discloses that the
519	519	19 amount represented in this State of its paid-in capital
520	520	20 immediately after the merger is greater than the aggregate
521	521	21 of the amounts represented in this State of the paid-in
522	522	22 capital of such of the merged corporations as were
523	523	23 authorized to transact business in this State at the time
524	524	24 of the merger, as last reported by them in any documents,
525	525	25 other than annual reports, required by this Act to be
526	526	26 filed in the office of the Secretary of State; and in
527	527
528	528
529	529
530	530
531	531
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533	533
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537	537	1 addition, the surviving corporation shall be liable for a
538	538	2 further additional franchise tax on the paid-in capital of
539	539	3 each of the merged corporations as last reported by them
540	540	4 in any document, other than an annual report, required by
541	541	5 this Act to be filed with the Secretary of State, from
542	542	6 their taxable year end to the next succeeding anniversary
543	543	7 month or, in the case of a corporation which has
544	544	8 established an extended filing month, the extended filing
545	545	9 month of the surviving corporation; however if the taxable
546	546	10 year ends within the 2-month period immediately preceding
547	547	11 the anniversary month or the extended filing month of the
548	548	12 surviving corporation, the tax will be computed to the
549	549	13 anniversary or, extended filing month of the surviving
550	550	14 corporation in the next succeeding calendar year.
551	551	15 (d) An annual franchise tax payable each year with any
552	552	16 annual report which the corporation is required by this
553	553	17 Act to file.
554	554	18 On or after January 1, 2020 and prior to January 1, 2021,
555	555	19 the first $30 in liability is exempt from the tax imposed under
556	556	20 this Section. On or after January 1, 2021 and prior to January
557	557	21 1, 2024, the first $1,000 in liability is exempt from the tax
558	558	22 imposed under this Section. The provisions of this Section
559	559	23 shall not require the payment of any franchise tax that would
560	560	24 otherwise have been due and payable on or after January 1,
561	561	25 2024. There shall be no refunds or proration of franchise tax
562	562	26 for any taxes due and payable on or after January 1, 2024 on
563	563
564	564
565	565
566	566
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569	569
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573	573	1 the basis that a portion of the corporation's taxable year
574	574	2 extends beyond January 1, 2024. Public Act 101-9 shall not
575	575	3 affect any right accrued or established, or any liability or
576	576	4 penalty incurred, prior to January 1, 2024.
577	577	5 This Section is repealed on January 1, 2025.
578	578	6 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
579	579	7 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
580	580	8 Section 99. Effective date. This Act takes effect upon
581	581	9 becoming law.
582	582
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