Illinois 2023-2024 Regular Session

Illinois House Bill HB5290 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0647
2	1		HB5290 EnrolledLRB103 39138 CES 69280 b HB5290 Enrolled LRB103 39138 CES 69280 b
3	2		HB5290 Enrolled LRB103 39138 CES 69280 b
4		-	AN ACT concerning health.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 1. Short title. This Act may be cited as the
8		-	Medical Debt Relief Act.
9		-	Section 5. Findings. The General Assembly finds that:
10		-	(a) People with medical debt often forgo needed medical
11		-	care, have difficulty meeting basic needs, and face an
12		-	increased risk of bankruptcy.
13		-	(b) Of the estimated 1,900,000 Illinois residents with
14		-	medical debt in collections, 1,700,000 live at or below 400%
15		-	of the federal poverty guidelines updated periodically in the
16		-	Federal Register by the U.S. Department of Health and Human
17		-	Services. The average medical debt per individual is
18		-	approximately $2,300, and of the total estimated
19		-	$4,370,000,000 in medical debt that is in collections in
20		-	Illinois, roughly $4,000,000,000 is acquirable, erasable
21		-	medical debt carried by low-income Americans.
22		-	(c) Medical debt impacts communities throughout the State.
23		-	There are at least 12 counties in Illinois in which 20% to 30%
24		-	of residents are living with medical debt in collections:
25		-	Alexander, Coles, Grundy, Jefferson, Macon, Marion, Massac,
26		-	Randolph, Schuyler, Shelby, Vermilion, and Warren counties.
	3	+	1 AN ACT concerning health.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 1. Short title. This Act may be cited as the
	7	+	5 Medical Debt Relief Act.
	8	+	6 Section 5. Findings. The General Assembly finds that:
	9	+	7 (a) People with medical debt often forgo needed medical
	10	+	8 care, have difficulty meeting basic needs, and face an
	11	+	9 increased risk of bankruptcy.
	12	+	10 (b) Of the estimated 1,900,000 Illinois residents with
	13	+	11 medical debt in collections, 1,700,000 live at or below 400%
	14	+	12 of the federal poverty guidelines updated periodically in the
	15	+	13 Federal Register by the U.S. Department of Health and Human
	16	+	14 Services. The average medical debt per individual is
	17	+	15 approximately $2,300, and of the total estimated
	18	+	16 $4,370,000,000 in medical debt that is in collections in
	19	+	17 Illinois, roughly $4,000,000,000 is acquirable, erasable
	20	+	18 medical debt carried by low-income Americans.
	21	+	19 (c) Medical debt impacts communities throughout the State.
	22	+	20 There are at least 12 counties in Illinois in which 20% to 30%
	23	+	21 of residents are living with medical debt in collections:
	24	+	22 Alexander, Coles, Grundy, Jefferson, Macon, Marion, Massac,
	25	+	23 Randolph, Schuyler, Shelby, Vermilion, and Warren counties.
27	26
28	27
29	28
30	29		HB5290 Enrolled LRB103 39138 CES 69280 b
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33		-	These 12 counties have approximately 475,000 residents, about
34		-	112,000 of whom have medical debt in collections. 13% of Cook
35		-	County residents have medical debt in collections, and their
36		-	medical debts comprise more than a quarter of the statewide
37		-	total.
38		-	(d) While any person can accumulate medical debt, people
39		-	of color are disproportionately affected. Nationally, 13% of
40		-	the population has medical debt in collections, but 15% of
41		-	people in communities of color have medical debt in
42		-	collections. In Illinois, 14% of the population has medical
43		-	debt in collections, but 20% of the population in communities
44		-	of color have medical debt in collections.
45		-	(e) The medical debt disparity reinforces racial inequity
46		-	and exacerbates disparities in health outcomes. Structural
47		-	barriers, including housing, credit, and employment
48		-	opportunities, further increase financial vulnerability for
49		-	communities of color, making it more difficult to pay medical
50		-	bills on time.
51		-	(f) Since medical debt can be difficult for hospital
52		-	systems to collect, they will often settle debt obligations
53		-	for a fraction of the total amount owed.
54		-	(g) Cook County launched a successful effort to erase
55		-	medical debt obligations for Cook County residents in
56		-	partnership with a national nonprofit organization. Accounting
57		-	for Cook County's investment, an additional commitment of
58		-	approximately $24,500,000 would eliminate all current medical
59		-
60		-
61		-	debt for Illinois residents living at or below 400% of the
62		-	federal poverty guidelines.
63		-	(h) Illinois can accelerate health equity for residents
64		-	across the State by establishing a Medical Debt Relief Pilot
65		-	Program to provide grant funding to a nonprofit medical debt
66		-	relief coordinator to relieve thousands of families from the
67		-	crushing burden of medical debt.
68		-	Section 10. Definitions. As used in this Act:
69		-	"Eligible resident" means an individual who:
70		-	(1) is a resident of the State of Illinois; and
71		-	(2) has a household income at or below 400% of the
72		-	federal poverty guidelines or who has medical debt equal
73		-	to 5% or more of the individual's household income.
74		-	"Department" means the Department of Healthcare and Family
75		-	Services.
76		-	"Medical debt" means an obligation to pay money arising
77		-	from the receipt of health care services.
78		-	"Medical debt relief" means the discharge of a patient's
79		-	medical debt, including debt that is not in collections.
80		-	"Nonprofit medical debt relief coordinator" means a
81		-	nonprofit organization that is experienced in locating,
82		-	acquiring, and relieving medical debt for individuals and that
83		-	is able to discharge medical debt of an eligible resident in a
84		-	manner that does not result in a taxable event for the
85		-	resident.
86		-
87		-
88		-	"Pilot program" means the Medical Debt Relief Pilot
89		-	Program.
90		-	Section 15. Medical Debt Relief Pilot Program.
91		-	(a) Subject to appropriation, the Department of Healthcare
92		-	and Family Services shall establish a Medical Debt Relief
93		-	Pilot Program to discharge the medical debt of eligible
94		-	residents.
95		-	(b) Under the pilot program, the Department shall provide
96		-	grant funding to a nonprofit medical debt relief coordinator
97		-	to use the grant funds and any other private funds available to
98		-	negotiate and settle, to the extent possible, the medical debt
99		-	of eligible residents owed to hospitals and other health care
100		-	providers and entities. The hospitals and other health care
101		-	providers and entities may be located outside of the State of
102		-	Illinois, so long as the negotiation and settlement of medical
103		-	debt is on behalf of an eligible resident.
104		-	(c) The Department shall establish the pilot program no
105		-	later than January 1, 2025. The Department shall administer
106		-	the pilot program consistent with the requirements of the
107		-	Grant Accountability and Transparency Act to determine which
108		-	nonprofit medical debt relief coordinator to use, unless the
109		-	Department and the State's Grant Accountability and
110		-	Transparency Unit determine that only a single nonprofit
111		-	medical debt relief coordinator has the capacity and
112		-	willingness to carry out the duties specified in this Act. The
113		-
114		-
115		-	Department shall publish on its website any agreement,
116		-	including amendments and attachments, entered into with a debt
117		-	relief coordinator within 5 business days after the agreement
118		-	or amendment was entered into by the Department.
119		-	(d) The nonprofit medical debt relief coordinator shall:
120		-	(1) Identify eligible residents who qualify for the
121		-	pilot program.
122		-	(2) Review the medical debt accounts of each
123		-	commercial debt collection agency or health care provider
124		-	willing to sell medical debt accounts of eligible
125		-	residents.
126		-	(3) Conduct an outreach pilot program with hospitals,
127		-	hospital systems, and other providers and entities about
128		-	the benefits of the Medical Debt Relief Pilot Program.
129		-	Such outreach shall first be initiated with safety-net
130		-	hospitals.
131		-	(4) Negotiate and acquire medical debt of eligible
132		-	residents from health care providers and medical debt
133		-	collection agencies.
134		-	(5) Within 60 days of the acquisition of an eligible
135		-	resident's medical debt, notify all eligible residents
136		-	whose medical debt has been discharged under the pilot
137		-	program, in a manner approved by the Department, that they
138		-	no longer have specified medical debt owed to the relevant
139		-	health care provider or commercial debt collection agency.
140		-	(6) Not attempt to seek payment from an eligible
141		-
142		-
143		-	resident for medical debt purchased by the nonprofit
144		-	medical debt relief coordinator.
145		-	(7) To the extent possible, give priority to hospitals
146		-	and providers who serve a high percentage of volume of
147		-	Medicaid customers and providers located in
148		-	disproportionately impacted area zip codes.
149		-	(e) The Department shall provide an annual report to the
150		-	Governor and General Assembly that includes, but is not
151		-	limited to:
152		-	(1) The amount of medical debt purchased and
153		-	discharged under the pilot program.
154		-	(2) The number of eligible residents who received
155		-	medical debt relief under the pilot program.
156		-	(3) The demographic characteristics of the eligible
157		-	residents, including, but not limited to, race, ethnicity,
158		-	income level, zip code, and insurance status.
159		-	(4) The number and characteristics of health care
160		-	providers from whom medical debt was purchased and
161		-	discharged, including, but not limited to, geography and
162		-	payor mix.
163		-	(f) The Department shall adopt any rules necessary to
164		-	implement this Act.
165		-	Section 20. Repealer. The Act is repealed on July 1, 2029.
166		-	Section 100. The State Finance Act is amended by adding
167		-
168		-
169		-	Sections 5.1015 and 6z-140 as follows:
170		-	(30 ILCS 105/5.1015 new)
171		-	Sec. 5.1015. The Medical Debt Relief Pilot Program Fund.
172		-	(30 ILCS 105/6z-140 new)
173		-	Sec. 6z-140. Medical Debt Relief Pilot Program Fund. The
174		-	Medical Debt Relief Pilot Program Fund is created as a special
175		-	fund in the State treasury. All moneys in the Fund shall be
176		-	appropriated to the Department of Healthcare and Family
177		-	Services and expended exclusively for the Medical Debt Relief
178		-	Pilot Program to provide grant funding to a nonprofit medical
179		-	debt relief coordinator to be used to discharge the medical
180		-	debt of eligible residents as defined in the Medical Debt
181		-	Relief Act. Based on a budget approved by the Department, the
182		-	grant funding may also be used for any administrative services
183		-	provided by the nonprofit medical debt relief coordinator to
184		-	discharge the medical debt of eligible residents.
185		-	Section 105. The Illinois Income Tax Act is amended by
186		-	changing Section 203 as follows:
187		-	(35 ILCS 5/203)
188		-	Sec. 203. Base income defined.
189		-	(a) Individuals.
190		-	(1) In general. In the case of an individual, base
191		-
192		-
193		-	income means an amount equal to the taxpayer's adjusted
194		-	gross income for the taxable year as modified by paragraph
195		-	(2).
196		-	(2) Modifications. The adjusted gross income referred
197		-	to in paragraph (1) shall be modified by adding thereto
198		-	the sum of the following amounts:
199		-	(A) An amount equal to all amounts paid or accrued
200		-	to the taxpayer as interest or dividends during the
201		-	taxable year to the extent excluded from gross income
202		-	in the computation of adjusted gross income, except
203		-	stock dividends of qualified public utilities
204		-	described in Section 305(e) of the Internal Revenue
205		-	Code;
206		-	(B) An amount equal to the amount of tax imposed by
207		-	this Act to the extent deducted from gross income in
208		-	the computation of adjusted gross income for the
209		-	taxable year;
210		-	(C) An amount equal to the amount received during
211		-	the taxable year as a recovery or refund of real
212		-	property taxes paid with respect to the taxpayer's
213		-	principal residence under the Revenue Act of 1939 and
214		-	for which a deduction was previously taken under
215		-	subparagraph (L) of this paragraph (2) prior to July
216		-	1, 1991, the retrospective application date of Article
217		-	4 of Public Act 87-17. In the case of multi-unit or
218		-	multi-use structures and farm dwellings, the taxes on
219		-
220		-
221		-	the taxpayer's principal residence shall be that
222		-	portion of the total taxes for the entire property
223		-	which is attributable to such principal residence;
224		-	(D) An amount equal to the amount of the capital
225		-	gain deduction allowable under the Internal Revenue
226		-	Code, to the extent deducted from gross income in the
227		-	computation of adjusted gross income;
228		-	(D-5) An amount, to the extent not included in
229		-	adjusted gross income, equal to the amount of money
230		-	withdrawn by the taxpayer in the taxable year from a
231		-	medical care savings account and the interest earned
232		-	on the account in the taxable year of a withdrawal
233		-	pursuant to subsection (b) of Section 20 of the
234		-	Medical Care Savings Account Act or subsection (b) of
235		-	Section 20 of the Medical Care Savings Account Act of
236		-	2000;
237		-	(D-10) For taxable years ending after December 31,
238		-	1997, an amount equal to any eligible remediation
239		-	costs that the individual deducted in computing
240		-	adjusted gross income and for which the individual
241		-	claims a credit under subsection (l) of Section 201;
242		-	(D-15) For taxable years 2001 and thereafter, an
243		-	amount equal to the bonus depreciation deduction taken
244		-	on the taxpayer's federal income tax return for the
245		-	taxable year under subsection (k) of Section 168 of
246		-	the Internal Revenue Code;
247		-
248		-
249		-	(D-16) If the taxpayer sells, transfers, abandons,
250		-	or otherwise disposes of property for which the
251		-	taxpayer was required in any taxable year to make an
252		-	addition modification under subparagraph (D-15), then
253		-	an amount equal to the aggregate amount of the
254		-	deductions taken in all taxable years under
255		-	subparagraph (Z) with respect to that property.
256		-	If the taxpayer continues to own property through
257		-	the last day of the last tax year for which a
258		-	subtraction is allowed with respect to that property
259		-	under subparagraph (Z) and for which the taxpayer was
260		-	allowed in any taxable year to make a subtraction
261		-	modification under subparagraph (Z), then an amount
262		-	equal to that subtraction modification.
263		-	The taxpayer is required to make the addition
264		-	modification under this subparagraph only once with
265		-	respect to any one piece of property;
266		-	(D-17) An amount equal to the amount otherwise
267		-	allowed as a deduction in computing base income for
268		-	interest paid, accrued, or incurred, directly or
269		-	indirectly, (i) for taxable years ending on or after
270		-	December 31, 2004, to a foreign person who would be a
271		-	member of the same unitary business group but for the
272		-	fact that foreign person's business activity outside
273		-	the United States is 80% or more of the foreign
274		-	person's total business activity and (ii) for taxable
275		-
276		-
277		-	years ending on or after December 31, 2008, to a person
278		-	who would be a member of the same unitary business
279		-	group but for the fact that the person is prohibited
280		-	under Section 1501(a)(27) from being included in the
281		-	unitary business group because he or she is ordinarily
282		-	required to apportion business income under different
283		-	subsections of Section 304. The addition modification
284		-	required by this subparagraph shall be reduced to the
285		-	extent that dividends were included in base income of
286		-	the unitary group for the same taxable year and
287		-	received by the taxpayer or by a member of the
288		-	taxpayer's unitary business group (including amounts
289		-	included in gross income under Sections 951 through
290		-	964 of the Internal Revenue Code and amounts included
291		-	in gross income under Section 78 of the Internal
292		-	Revenue Code) with respect to the stock of the same
293		-	person to whom the interest was paid, accrued, or
294		-	incurred.
295		-	This paragraph shall not apply to the following:
296		-	(i) an item of interest paid, accrued, or
297		-	incurred, directly or indirectly, to a person who
298		-	is subject in a foreign country or state, other
299		-	than a state which requires mandatory unitary
300		-	reporting, to a tax on or measured by net income
301		-	with respect to such interest; or
302		-	(ii) an item of interest paid, accrued, or
303		-
304		-
305		-	incurred, directly or indirectly, to a person if
306		-	the taxpayer can establish, based on a
307		-	preponderance of the evidence, both of the
308		-	following:
309		-	(a) the person, during the same taxable
310		-	year, paid, accrued, or incurred, the interest
311		-	to a person that is not a related member, and
312		-	(b) the transaction giving rise to the
313		-	interest expense between the taxpayer and the
314		-	person did not have as a principal purpose the
315		-	avoidance of Illinois income tax, and is paid
316		-	pursuant to a contract or agreement that
317		-	reflects an arm's-length interest rate and
318		-	terms; or
319		-	(iii) the taxpayer can establish, based on
320		-	clear and convincing evidence, that the interest
321		-	paid, accrued, or incurred relates to a contract
322		-	or agreement entered into at arm's-length rates
323		-	and terms and the principal purpose for the
324		-	payment is not federal or Illinois tax avoidance;
325		-	or
326		-	(iv) an item of interest paid, accrued, or
327		-	incurred, directly or indirectly, to a person if
328		-	the taxpayer establishes by clear and convincing
329		-	evidence that the adjustments are unreasonable; or
330		-	if the taxpayer and the Director agree in writing
331		-
332		-
333		-	to the application or use of an alternative method
334		-	of apportionment under Section 304(f).
335		-	Nothing in this subsection shall preclude the
336		-	Director from making any other adjustment
337		-	otherwise allowed under Section 404 of this Act
338		-	for any tax year beginning after the effective
339		-	date of this amendment provided such adjustment is
340		-	made pursuant to regulation adopted by the
341		-	Department and such regulations provide methods
342		-	and standards by which the Department will utilize
343		-	its authority under Section 404 of this Act;
344		-	(D-18) An amount equal to the amount of intangible
345		-	expenses and costs otherwise allowed as a deduction in
346		-	computing base income, and that were paid, accrued, or
347		-	incurred, directly or indirectly, (i) for taxable
348		-	years ending on or after December 31, 2004, to a
349		-	foreign person who would be a member of the same
350		-	unitary business group but for the fact that the
351		-	foreign person's business activity outside the United
352		-	States is 80% or more of that person's total business
353		-	activity and (ii) for taxable years ending on or after
354		-	December 31, 2008, to a person who would be a member of
355		-	the same unitary business group but for the fact that
356		-	the person is prohibited under Section 1501(a)(27)
357		-	from being included in the unitary business group
358		-	because he or she is ordinarily required to apportion
359		-
360		-
361		-	business income under different subsections of Section
362		-	304. The addition modification required by this
363		-	subparagraph shall be reduced to the extent that
364		-	dividends were included in base income of the unitary
365		-	group for the same taxable year and received by the
366		-	taxpayer or by a member of the taxpayer's unitary
367		-	business group (including amounts included in gross
368		-	income under Sections 951 through 964 of the Internal
369		-	Revenue Code and amounts included in gross income
370		-	under Section 78 of the Internal Revenue Code) with
371		-	respect to the stock of the same person to whom the
372		-	intangible expenses and costs were directly or
373		-	indirectly paid, incurred, or accrued. The preceding
374		-	sentence does not apply to the extent that the same
375		-	dividends caused a reduction to the addition
376		-	modification required under Section 203(a)(2)(D-17) of
377		-	this Act. As used in this subparagraph, the term
378		-	"intangible expenses and costs" includes (1) expenses,
379		-	losses, and costs for, or related to, the direct or
380		-	indirect acquisition, use, maintenance or management,
381		-	ownership, sale, exchange, or any other disposition of
382		-	intangible property; (2) losses incurred, directly or
383		-	indirectly, from factoring transactions or discounting
384		-	transactions; (3) royalty, patent, technical, and
385		-	copyright fees; (4) licensing fees; and (5) other
386		-	similar expenses and costs. For purposes of this
387		-
388		-
389		-	subparagraph, "intangible property" includes patents,
390		-	patent applications, trade names, trademarks, service
391		-	marks, copyrights, mask works, trade secrets, and
392		-	similar types of intangible assets.
393		-	This paragraph shall not apply to the following:
394		-	(i) any item of intangible expenses or costs
395		-	paid, accrued, or incurred, directly or
396		-	indirectly, from a transaction with a person who
397		-	is subject in a foreign country or state, other
398		-	than a state which requires mandatory unitary
399		-	reporting, to a tax on or measured by net income
400		-	with respect to such item; or
401		-	(ii) any item of intangible expense or cost
402		-	paid, accrued, or incurred, directly or
403		-	indirectly, if the taxpayer can establish, based
404		-	on a preponderance of the evidence, both of the
405		-	following:
406		-	(a) the person during the same taxable
407		-	year paid, accrued, or incurred, the
408		-	intangible expense or cost to a person that is
409		-	not a related member, and
410		-	(b) the transaction giving rise to the
411		-	intangible expense or cost between the
412		-	taxpayer and the person did not have as a
413		-	principal purpose the avoidance of Illinois
414		-	income tax, and is paid pursuant to a contract
415		-
416		-
417		-	or agreement that reflects arm's-length terms;
418		-	or
419		-	(iii) any item of intangible expense or cost
420		-	paid, accrued, or incurred, directly or
421		-	indirectly, from a transaction with a person if
422		-	the taxpayer establishes by clear and convincing
423		-	evidence, that the adjustments are unreasonable;
424		-	or if the taxpayer and the Director agree in
425		-	writing to the application or use of an
426		-	alternative method of apportionment under Section
427		-	304(f);
428		-	Nothing in this subsection shall preclude the
429		-	Director from making any other adjustment
430		-	otherwise allowed under Section 404 of this Act
431		-	for any tax year beginning after the effective
432		-	date of this amendment provided such adjustment is
433		-	made pursuant to regulation adopted by the
434		-	Department and such regulations provide methods
435		-	and standards by which the Department will utilize
436		-	its authority under Section 404 of this Act;
437		-	(D-19) For taxable years ending on or after
438		-	December 31, 2008, an amount equal to the amount of
439		-	insurance premium expenses and costs otherwise allowed
440		-	as a deduction in computing base income, and that were
441		-	paid, accrued, or incurred, directly or indirectly, to
442		-	a person who would be a member of the same unitary
443		-
444		-
445		-	business group but for the fact that the person is
446		-	prohibited under Section 1501(a)(27) from being
447		-	included in the unitary business group because he or
448		-	she is ordinarily required to apportion business
449		-	income under different subsections of Section 304. The
450		-	addition modification required by this subparagraph
451		-	shall be reduced to the extent that dividends were
452		-	included in base income of the unitary group for the
453		-	same taxable year and received by the taxpayer or by a
454		-	member of the taxpayer's unitary business group
455		-	(including amounts included in gross income under
456		-	Sections 951 through 964 of the Internal Revenue Code
457		-	and amounts included in gross income under Section 78
458		-	of the Internal Revenue Code) with respect to the
459		-	stock of the same person to whom the premiums and costs
460		-	were directly or indirectly paid, incurred, or
461		-	accrued. The preceding sentence does not apply to the
462		-	extent that the same dividends caused a reduction to
463		-	the addition modification required under Section
464		-	203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
465		-	Act;
466		-	(D-20) For taxable years beginning on or after
467		-	January 1, 2002 and ending on or before December 31,
468		-	2006, in the case of a distribution from a qualified
469		-	tuition program under Section 529 of the Internal
470		-	Revenue Code, other than (i) a distribution from a
471		-
472		-
473		-	College Savings Pool created under Section 16.5 of the
474		-	State Treasurer Act or (ii) a distribution from the
475		-	Illinois Prepaid Tuition Trust Fund, an amount equal
476		-	to the amount excluded from gross income under Section
477		-	529(c)(3)(B). For taxable years beginning on or after
478		-	January 1, 2007, in the case of a distribution from a
479		-	qualified tuition program under Section 529 of the
480		-	Internal Revenue Code, other than (i) a distribution
481		-	from a College Savings Pool created under Section 16.5
482		-	of the State Treasurer Act, (ii) a distribution from
483		-	the Illinois Prepaid Tuition Trust Fund, or (iii) a
484		-	distribution from a qualified tuition program under
485		-	Section 529 of the Internal Revenue Code that (I)
486		-	adopts and determines that its offering materials
487		-	comply with the College Savings Plans Network's
488		-	disclosure principles and (II) has made reasonable
489		-	efforts to inform in-state residents of the existence
490		-	of in-state qualified tuition programs by informing
491		-	Illinois residents directly and, where applicable, to
492		-	inform financial intermediaries distributing the
493		-	program to inform in-state residents of the existence
494		-	of in-state qualified tuition programs at least
495		-	annually, an amount equal to the amount excluded from
496		-	gross income under Section 529(c)(3)(B).
497		-	For the purposes of this subparagraph (D-20), a
498		-	qualified tuition program has made reasonable efforts
499		-
500		-
501		-	if it makes disclosures (which may use the term
502		-	"in-state program" or "in-state plan" and need not
503		-	specifically refer to Illinois or its qualified
504		-	programs by name) (i) directly to prospective
505		-	participants in its offering materials or makes a
506		-	public disclosure, such as a website posting; and (ii)
507		-	where applicable, to intermediaries selling the
508		-	out-of-state program in the same manner that the
509		-	out-of-state program distributes its offering
510		-	materials;
511		-	(D-20.5) For taxable years beginning on or after
512		-	January 1, 2018, in the case of a distribution from a
513		-	qualified ABLE program under Section 529A of the
514		-	Internal Revenue Code, other than a distribution from
515		-	a qualified ABLE program created under Section 16.6 of
516		-	the State Treasurer Act, an amount equal to the amount
517		-	excluded from gross income under Section 529A(c)(1)(B)
518		-	of the Internal Revenue Code;
519		-	(D-21) For taxable years beginning on or after
520		-	January 1, 2007, in the case of transfer of moneys from
521		-	a qualified tuition program under Section 529 of the
522		-	Internal Revenue Code that is administered by the
523		-	State to an out-of-state program, an amount equal to
524		-	the amount of moneys previously deducted from base
525		-	income under subsection (a)(2)(Y) of this Section;
526		-	(D-21.5) For taxable years beginning on or after
527		-
528		-
529		-	January 1, 2018, in the case of the transfer of moneys
530		-	from a qualified tuition program under Section 529 or
531		-	a qualified ABLE program under Section 529A of the
532		-	Internal Revenue Code that is administered by this
533		-	State to an ABLE account established under an
534		-	out-of-state ABLE account program, an amount equal to
535		-	the contribution component of the transferred amount
536		-	that was previously deducted from base income under
537		-	subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
538		-	Section;
539		-	(D-22) For taxable years beginning on or after
540		-	January 1, 2009, and prior to January 1, 2018, in the
541		-	case of a nonqualified withdrawal or refund of moneys
542		-	from a qualified tuition program under Section 529 of
543		-	the Internal Revenue Code administered by the State
544		-	that is not used for qualified expenses at an eligible
545		-	education institution, an amount equal to the
546		-	contribution component of the nonqualified withdrawal
547		-	or refund that was previously deducted from base
548		-	income under subsection (a)(2)(y) of this Section,
549		-	provided that the withdrawal or refund did not result
550		-	from the beneficiary's death or disability. For
551		-	taxable years beginning on or after January 1, 2018:
552		-	(1) in the case of a nonqualified withdrawal or
553		-	refund, as defined under Section 16.5 of the State
554		-	Treasurer Act, of moneys from a qualified tuition
555		-
556		-
557		-	program under Section 529 of the Internal Revenue Code
558		-	administered by the State, an amount equal to the
559		-	contribution component of the nonqualified withdrawal
560		-	or refund that was previously deducted from base
561		-	income under subsection (a)(2)(Y) of this Section, and
562		-	(2) in the case of a nonqualified withdrawal or refund
563		-	from a qualified ABLE program under Section 529A of
564		-	the Internal Revenue Code administered by the State
565		-	that is not used for qualified disability expenses, an
566		-	amount equal to the contribution component of the
567		-	nonqualified withdrawal or refund that was previously
568		-	deducted from base income under subsection (a)(2)(HH)
569		-	of this Section;
570		-	(D-23) An amount equal to the credit allowable to
571		-	the taxpayer under Section 218(a) of this Act,
572		-	determined without regard to Section 218(c) of this
573		-	Act;
574		-	(D-24) For taxable years ending on or after
575		-	December 31, 2017, an amount equal to the deduction
576		-	allowed under Section 199 of the Internal Revenue Code
577		-	for the taxable year;
578		-	(D-25) In the case of a resident, an amount equal
579		-	to the amount of tax for which a credit is allowed
580		-	pursuant to Section 201(p)(7) of this Act;
581		-	and by deducting from the total so obtained the sum of the
582		-	following amounts:
583		-
584		-
585		-	(E) For taxable years ending before December 31,
586		-	2001, any amount included in such total in respect of
587		-	any compensation (including but not limited to any
588		-	compensation paid or accrued to a serviceman while a
589		-	prisoner of war or missing in action) paid to a
590		-	resident by reason of being on active duty in the Armed
591		-	Forces of the United States and in respect of any
592		-	compensation paid or accrued to a resident who as a
593		-	governmental employee was a prisoner of war or missing
594		-	in action, and in respect of any compensation paid to a
595		-	resident in 1971 or thereafter for annual training
596		-	performed pursuant to Sections 502 and 503, Title 32,
597		-	United States Code as a member of the Illinois
598		-	National Guard or, beginning with taxable years ending
599		-	on or after December 31, 2007, the National Guard of
600		-	any other state. For taxable years ending on or after
601		-	December 31, 2001, any amount included in such total
602		-	in respect of any compensation (including but not
603		-	limited to any compensation paid or accrued to a
604		-	serviceman while a prisoner of war or missing in
605		-	action) paid to a resident by reason of being a member
606		-	of any component of the Armed Forces of the United
607		-	States and in respect of any compensation paid or
608		-	accrued to a resident who as a governmental employee
609		-	was a prisoner of war or missing in action, and in
610		-	respect of any compensation paid to a resident in 2001
611		-
612		-
613		-	or thereafter by reason of being a member of the
614		-	Illinois National Guard or, beginning with taxable
615		-	years ending on or after December 31, 2007, the
616		-	National Guard of any other state. The provisions of
617		-	this subparagraph (E) are exempt from the provisions
618		-	of Section 250;
619		-	(F) An amount equal to all amounts included in
620		-	such total pursuant to the provisions of Sections
621		-	402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
622		-	408 of the Internal Revenue Code, or included in such
623		-	total as distributions under the provisions of any
624		-	retirement or disability plan for employees of any
625		-	governmental agency or unit, or retirement payments to
626		-	retired partners, which payments are excluded in
627		-	computing net earnings from self employment by Section
628		-	1402 of the Internal Revenue Code and regulations
629		-	adopted pursuant thereto;
630		-	(G) The valuation limitation amount;
631		-	(H) An amount equal to the amount of any tax
632		-	imposed by this Act which was refunded to the taxpayer
633		-	and included in such total for the taxable year;
634		-	(I) An amount equal to all amounts included in
635		-	such total pursuant to the provisions of Section 111
636		-	of the Internal Revenue Code as a recovery of items
637		-	previously deducted from adjusted gross income in the
638		-	computation of taxable income;
639		-
640		-
641		-	(J) An amount equal to those dividends included in
642		-	such total which were paid by a corporation which
643		-	conducts business operations in a River Edge
644		-	Redevelopment Zone or zones created under the River
645		-	Edge Redevelopment Zone Act, and conducts
646		-	substantially all of its operations in a River Edge
647		-	Redevelopment Zone or zones. This subparagraph (J) is
648		-	exempt from the provisions of Section 250;
649		-	(K) An amount equal to those dividends included in
650		-	such total that were paid by a corporation that
651		-	conducts business operations in a federally designated
652		-	Foreign Trade Zone or Sub-Zone and that is designated
653		-	a High Impact Business located in Illinois; provided
654		-	that dividends eligible for the deduction provided in
655		-	subparagraph (J) of paragraph (2) of this subsection
656		-	shall not be eligible for the deduction provided under
657		-	this subparagraph (K);
658		-	(L) For taxable years ending after December 31,
659		-	1983, an amount equal to all social security benefits
660		-	and railroad retirement benefits included in such
661		-	total pursuant to Sections 72(r) and 86 of the
662		-	Internal Revenue Code;
663		-	(M) With the exception of any amounts subtracted
664		-	under subparagraph (N), an amount equal to the sum of
665		-	all amounts disallowed as deductions by (i) Sections
666		-	171(a)(2) and 265(a)(2) of the Internal Revenue Code,
667		-
668		-
669		-	and all amounts of expenses allocable to interest and
670		-	disallowed as deductions by Section 265(a)(1) of the
671		-	Internal Revenue Code; and (ii) for taxable years
672		-	ending on or after August 13, 1999, Sections
673		-	171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
674		-	Internal Revenue Code, plus, for taxable years ending
675		-	on or after December 31, 2011, Section 45G(e)(3) of
676		-	the Internal Revenue Code and, for taxable years
677		-	ending on or after December 31, 2008, any amount
678		-	included in gross income under Section 87 of the
679		-	Internal Revenue Code; the provisions of this
680		-	subparagraph are exempt from the provisions of Section
681		-	250;
682		-	(N) An amount equal to all amounts included in
683		-	such total which are exempt from taxation by this
684		-	State either by reason of its statutes or Constitution
685		-	or by reason of the Constitution, treaties or statutes
686		-	of the United States; provided that, in the case of any
687		-	statute of this State that exempts income derived from
688		-	bonds or other obligations from the tax imposed under
689		-	this Act, the amount exempted shall be the interest
690		-	net of bond premium amortization;
691		-	(O) An amount equal to any contribution made to a
692		-	job training project established pursuant to the Tax
693		-	Increment Allocation Redevelopment Act;
694		-	(P) An amount equal to the amount of the deduction
695		-
696		-
697		-	used to compute the federal income tax credit for
698		-	restoration of substantial amounts held under claim of
699		-	right for the taxable year pursuant to Section 1341 of
700		-	the Internal Revenue Code or of any itemized deduction
701		-	taken from adjusted gross income in the computation of
702		-	taxable income for restoration of substantial amounts
703		-	held under claim of right for the taxable year;
704		-	(Q) An amount equal to any amounts included in
705		-	such total, received by the taxpayer as an
706		-	acceleration in the payment of life, endowment or
707		-	annuity benefits in advance of the time they would
708		-	otherwise be payable as an indemnity for a terminal
709		-	illness;
710		-	(R) An amount equal to the amount of any federal or
711		-	State bonus paid to veterans of the Persian Gulf War;
712		-	(S) An amount, to the extent included in adjusted
713		-	gross income, equal to the amount of a contribution
714		-	made in the taxable year on behalf of the taxpayer to a
715		-	medical care savings account established under the
716		-	Medical Care Savings Account Act or the Medical Care
717		-	Savings Account Act of 2000 to the extent the
718		-	contribution is accepted by the account administrator
719		-	as provided in that Act;
720		-	(T) An amount, to the extent included in adjusted
721		-	gross income, equal to the amount of interest earned
722		-	in the taxable year on a medical care savings account
723		-
724		-
725		-	established under the Medical Care Savings Account Act
726		-	or the Medical Care Savings Account Act of 2000 on
727		-	behalf of the taxpayer, other than interest added
728		-	pursuant to item (D-5) of this paragraph (2);
729		-	(U) For one taxable year beginning on or after
730		-	January 1, 1994, an amount equal to the total amount of
731		-	tax imposed and paid under subsections (a) and (b) of
732		-	Section 201 of this Act on grant amounts received by
733		-	the taxpayer under the Nursing Home Grant Assistance
734		-	Act during the taxpayer's taxable years 1992 and 1993;
735		-	(V) Beginning with tax years ending on or after
736		-	December 31, 1995 and ending with tax years ending on
737		-	or before December 31, 2004, an amount equal to the
738		-	amount paid by a taxpayer who is a self-employed
739		-	taxpayer, a partner of a partnership, or a shareholder
740		-	in a Subchapter S corporation for health insurance or
741		-	long-term care insurance for that taxpayer or that
742		-	taxpayer's spouse or dependents, to the extent that
743		-	the amount paid for that health insurance or long-term
744		-	care insurance may be deducted under Section 213 of
745		-	the Internal Revenue Code, has not been deducted on
746		-	the federal income tax return of the taxpayer, and
747		-	does not exceed the taxable income attributable to
748		-	that taxpayer's income, self-employment income, or
749		-	Subchapter S corporation income; except that no
750		-	deduction shall be allowed under this item (V) if the
751		-
752		-
753		-	taxpayer is eligible to participate in any health
754		-	insurance or long-term care insurance plan of an
755		-	employer of the taxpayer or the taxpayer's spouse. The
756		-	amount of the health insurance and long-term care
757		-	insurance subtracted under this item (V) shall be
758		-	determined by multiplying total health insurance and
759		-	long-term care insurance premiums paid by the taxpayer
760		-	times a number that represents the fractional
761		-	percentage of eligible medical expenses under Section
762		-	213 of the Internal Revenue Code of 1986 not actually
763		-	deducted on the taxpayer's federal income tax return;
764		-	(W) For taxable years beginning on or after
765		-	January 1, 1998, all amounts included in the
766		-	taxpayer's federal gross income in the taxable year
767		-	from amounts converted from a regular IRA to a Roth
768		-	IRA. This paragraph is exempt from the provisions of
769		-	Section 250;
770		-	(X) For taxable year 1999 and thereafter, an
771		-	amount equal to the amount of any (i) distributions,
772		-	to the extent includible in gross income for federal
773		-	income tax purposes, made to the taxpayer because of
774		-	his or her status as a victim of persecution for racial
775		-	or religious reasons by Nazi Germany or any other Axis
776		-	regime or as an heir of the victim and (ii) items of
777		-	income, to the extent includible in gross income for
778		-	federal income tax purposes, attributable to, derived
779		-
780		-
781		-	from or in any way related to assets stolen from,
782		-	hidden from, or otherwise lost to a victim of
783		-	persecution for racial or religious reasons by Nazi
784		-	Germany or any other Axis regime immediately prior to,
785		-	during, and immediately after World War II, including,
786		-	but not limited to, interest on the proceeds
787		-	receivable as insurance under policies issued to a
788		-	victim of persecution for racial or religious reasons
789		-	by Nazi Germany or any other Axis regime by European
790		-	insurance companies immediately prior to and during
791		-	World War II; provided, however, this subtraction from
792		-	federal adjusted gross income does not apply to assets
793		-	acquired with such assets or with the proceeds from
794		-	the sale of such assets; provided, further, this
795		-	paragraph shall only apply to a taxpayer who was the
796		-	first recipient of such assets after their recovery
797		-	and who is a victim of persecution for racial or
798		-	religious reasons by Nazi Germany or any other Axis
799		-	regime or as an heir of the victim. The amount of and
800		-	the eligibility for any public assistance, benefit, or
801		-	similar entitlement is not affected by the inclusion
802		-	of items (i) and (ii) of this paragraph in gross income
803		-	for federal income tax purposes. This paragraph is
804		-	exempt from the provisions of Section 250;
805		-	(Y) For taxable years beginning on or after
806		-	January 1, 2002 and ending on or before December 31,
807		-
808		-
809		-	2004, moneys contributed in the taxable year to a
810		-	College Savings Pool account under Section 16.5 of the
811		-	State Treasurer Act, except that amounts excluded from
812		-	gross income under Section 529(c)(3)(C)(i) of the
813		-	Internal Revenue Code shall not be considered moneys
814		-	contributed under this subparagraph (Y). For taxable
815		-	years beginning on or after January 1, 2005, a maximum
816		-	of $10,000 contributed in the taxable year to (i) a
817		-	College Savings Pool account under Section 16.5 of the
818		-	State Treasurer Act or (ii) the Illinois Prepaid
819		-	Tuition Trust Fund, except that amounts excluded from
820		-	gross income under Section 529(c)(3)(C)(i) of the
821		-	Internal Revenue Code shall not be considered moneys
822		-	contributed under this subparagraph (Y). For purposes
823		-	of this subparagraph, contributions made by an
824		-	employer on behalf of an employee, or matching
825		-	contributions made by an employee, shall be treated as
826		-	made by the employee. This subparagraph (Y) is exempt
827		-	from the provisions of Section 250;
828		-	(Z) For taxable years 2001 and thereafter, for the
829		-	taxable year in which the bonus depreciation deduction
830		-	is taken on the taxpayer's federal income tax return
831		-	under subsection (k) of Section 168 of the Internal
832		-	Revenue Code and for each applicable taxable year
833		-	thereafter, an amount equal to "x", where:
834		-	(1) "y" equals the amount of the depreciation
835		-
836		-
837		-	deduction taken for the taxable year on the
838		-	taxpayer's federal income tax return on property
839		-	for which the bonus depreciation deduction was
840		-	taken in any year under subsection (k) of Section
841		-	168 of the Internal Revenue Code, but not
842		-	including the bonus depreciation deduction;
843		-	(2) for taxable years ending on or before
844		-	December 31, 2005, "x" equals "y" multiplied by 30
845		-	and then divided by 70 (or "y" multiplied by
846		-	0.429); and
847		-	(3) for taxable years ending after December
848		-	31, 2005:
849		-	(i) for property on which a bonus
850		-	depreciation deduction of 30% of the adjusted
851		-	basis was taken, "x" equals "y" multiplied by
852		-	30 and then divided by 70 (or "y" multiplied
853		-	by 0.429);
854		-	(ii) for property on which a bonus
855		-	depreciation deduction of 50% of the adjusted
856		-	basis was taken, "x" equals "y" multiplied by
857		-	1.0;
858		-	(iii) for property on which a bonus
859		-	depreciation deduction of 100% of the adjusted
860		-	basis was taken in a taxable year ending on or
861		-	after December 31, 2021, "x" equals the
862		-	depreciation deduction that would be allowed
863		-
864		-
865		-	on that property if the taxpayer had made the
866		-	election under Section 168(k)(7) of the
867		-	Internal Revenue Code to not claim bonus
868		-	depreciation on that property; and
869		-	(iv) for property on which a bonus
870		-	depreciation deduction of a percentage other
871		-	than 30%, 50% or 100% of the adjusted basis
872		-	was taken in a taxable year ending on or after
873		-	December 31, 2021, "x" equals "y" multiplied
874		-	by 100 times the percentage bonus depreciation
875		-	on the property (that is, 100(bonus%)) and
876		-	then divided by 100 times 1 minus the
877		-	percentage bonus depreciation on the property
878		-	(that is, 100(1-bonus%)).
879		-	The aggregate amount deducted under this
880		-	subparagraph in all taxable years for any one piece of
881		-	property may not exceed the amount of the bonus
882		-	depreciation deduction taken on that property on the
883		-	taxpayer's federal income tax return under subsection
884		-	(k) of Section 168 of the Internal Revenue Code. This
885		-	subparagraph (Z) is exempt from the provisions of
886		-	Section 250;
887		-	(AA) If the taxpayer sells, transfers, abandons,
888		-	or otherwise disposes of property for which the
889		-	taxpayer was required in any taxable year to make an
890		-	addition modification under subparagraph (D-15), then
891		-
892		-
893		-	an amount equal to that addition modification.
894		-	If the taxpayer continues to own property through
895		-	the last day of the last tax year for which a
896		-	subtraction is allowed with respect to that property
897		-	under subparagraph (Z) and for which the taxpayer was
898		-	required in any taxable year to make an addition
899		-	modification under subparagraph (D-15), then an amount
900		-	equal to that addition modification.
901		-	The taxpayer is allowed to take the deduction
902		-	under this subparagraph only once with respect to any
903		-	one piece of property.
904		-	This subparagraph (AA) is exempt from the
905		-	provisions of Section 250;
906		-	(BB) Any amount included in adjusted gross income,
907		-	other than salary, received by a driver in a
908		-	ridesharing arrangement using a motor vehicle;
909		-	(CC) The amount of (i) any interest income (net of
910		-	the deductions allocable thereto) taken into account
911		-	for the taxable year with respect to a transaction
912		-	with a taxpayer that is required to make an addition
913		-	modification with respect to such transaction under
914		-	Section 203(a)(2)(D-17), 203(b)(2)(E-12),
915		-	203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
916		-	the amount of that addition modification, and (ii) any
917		-	income from intangible property (net of the deductions
918		-	allocable thereto) taken into account for the taxable
919		-
920		-
921		-	year with respect to a transaction with a taxpayer
922		-	that is required to make an addition modification with
923		-	respect to such transaction under Section
924		-	203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
925		-	203(d)(2)(D-8), but not to exceed the amount of that
926		-	addition modification. This subparagraph (CC) is
927		-	exempt from the provisions of Section 250;
928		-	(DD) An amount equal to the interest income taken
929		-	into account for the taxable year (net of the
930		-	deductions allocable thereto) with respect to
931		-	transactions with (i) a foreign person who would be a
932		-	member of the taxpayer's unitary business group but
933		-	for the fact that the foreign person's business
934		-	activity outside the United States is 80% or more of
935		-	that person's total business activity and (ii) for
936		-	taxable years ending on or after December 31, 2008, to
937		-	a person who would be a member of the same unitary
938		-	business group but for the fact that the person is
939		-	prohibited under Section 1501(a)(27) from being
940		-	included in the unitary business group because he or
941		-	she is ordinarily required to apportion business
942		-	income under different subsections of Section 304, but
943		-	not to exceed the addition modification required to be
944		-	made for the same taxable year under Section
945		-	203(a)(2)(D-17) for interest paid, accrued, or
946		-	incurred, directly or indirectly, to the same person.
947		-
948		-
949		-	This subparagraph (DD) is exempt from the provisions
950		-	of Section 250;
951		-	(EE) An amount equal to the income from intangible
952		-	property taken into account for the taxable year (net
953		-	of the deductions allocable thereto) with respect to
954		-	transactions with (i) a foreign person who would be a
955		-	member of the taxpayer's unitary business group but
956		-	for the fact that the foreign person's business
957		-	activity outside the United States is 80% or more of
958		-	that person's total business activity and (ii) for
959		-	taxable years ending on or after December 31, 2008, to
960		-	a person who would be a member of the same unitary
961		-	business group but for the fact that the person is
962		-	prohibited under Section 1501(a)(27) from being
963		-	included in the unitary business group because he or
964		-	she is ordinarily required to apportion business
965		-	income under different subsections of Section 304, but
966		-	not to exceed the addition modification required to be
967		-	made for the same taxable year under Section
968		-	203(a)(2)(D-18) for intangible expenses and costs
969		-	paid, accrued, or incurred, directly or indirectly, to
970		-	the same foreign person. This subparagraph (EE) is
971		-	exempt from the provisions of Section 250;
972		-	(FF) An amount equal to any amount awarded to the
973		-	taxpayer during the taxable year by the Court of
974		-	Claims under subsection (c) of Section 8 of the Court
975		-
976		-
977		-	of Claims Act for time unjustly served in a State
978		-	prison. This subparagraph (FF) is exempt from the
979		-	provisions of Section 250;
980		-	(GG) For taxable years ending on or after December
981		-	31, 2011, in the case of a taxpayer who was required to
982		-	add back any insurance premiums under Section
983		-	203(a)(2)(D-19), such taxpayer may elect to subtract
984		-	that part of a reimbursement received from the
985		-	insurance company equal to the amount of the expense
986		-	or loss (including expenses incurred by the insurance
987		-	company) that would have been taken into account as a
988		-	deduction for federal income tax purposes if the
989		-	expense or loss had been uninsured. If a taxpayer
990		-	makes the election provided for by this subparagraph
991		-	(GG), the insurer to which the premiums were paid must
992		-	add back to income the amount subtracted by the
993		-	taxpayer pursuant to this subparagraph (GG). This
994		-	subparagraph (GG) is exempt from the provisions of
995		-	Section 250;
996		-	(HH) For taxable years beginning on or after
997		-	January 1, 2018 and prior to January 1, 2028, a maximum
998		-	of $10,000 contributed in the taxable year to a
999		-	qualified ABLE account under Section 16.6 of the State
1000		-	Treasurer Act, except that amounts excluded from gross
1001		-	income under Section 529(c)(3)(C)(i) or Section
1002		-	529A(c)(1)(C) of the Internal Revenue Code shall not
1003		-
1004		-
1005		-	be considered moneys contributed under this
1006		-	subparagraph (HH). For purposes of this subparagraph
1007		-	(HH), contributions made by an employer on behalf of
1008		-	an employee, or matching contributions made by an
1009		-	employee, shall be treated as made by the employee;
1010		-	(II) For taxable years that begin on or after
1011		-	January 1, 2021 and begin before January 1, 2026, the
1012		-	amount that is included in the taxpayer's federal
1013		-	adjusted gross income pursuant to Section 61 of the
1014		-	Internal Revenue Code as discharge of indebtedness
1015		-	attributable to student loan forgiveness and that is
1016		-	not excluded from the taxpayer's federal adjusted
1017		-	gross income pursuant to paragraph (5) of subsection
1018		-	(f) of Section 108 of the Internal Revenue Code; and
1019		-	(JJ) For taxable years beginning on or after
1020		-	January 1, 2023, for any cannabis establishment
1021		-	operating in this State and licensed under the
1022		-	Cannabis Regulation and Tax Act or any cannabis
1023		-	cultivation center or medical cannabis dispensing
1024		-	organization operating in this State and licensed
1025		-	under the Compassionate Use of Medical Cannabis
1026		-	Program Act, an amount equal to the deductions that
1027		-	were disallowed under Section 280E of the Internal
1028		-	Revenue Code for the taxable year and that would not be
1029		-	added back under this subsection. The provisions of
1030		-	this subparagraph (JJ) are exempt from the provisions
1031		-
1032		-
1033		-	of Section 250; and .
1034		-	(KK) (JJ) To the extent includible in gross income
1035		-	for federal income tax purposes, any amount awarded or
1036		-	paid to the taxpayer as a result of a judgment or
1037		-	settlement for fertility fraud as provided in Section
1038		-	15 of the Illinois Fertility Fraud Act, donor
1039		-	fertility fraud as provided in Section 20 of the
1040		-	Illinois Fertility Fraud Act, or similar action in
1041		-	another state.
1042		-	(LL) For taxable years beginning on or after
1043		-	January 1, 2025, if the taxpayer is an eligible
1044		-	resident as defined in the Medical Debt Relief Act, an
1045		-	amount equal to the amount included in the taxpayer's
1046		-	federal adjusted gross income that is attributable to
1047		-	medical debt relief received by the taxpayer during
1048		-	the taxable year from a nonprofit medical debt relief
1049		-	coordinator under the provisions of the Medical Debt
1050		-	Relief Act. This subparagraph (LL) is exempt from the
1051		-	provisions of Section 250.
1052		-	(b) Corporations.
1053		-	(1) In general. In the case of a corporation, base
1054		-	income means an amount equal to the taxpayer's taxable
1055		-	income for the taxable year as modified by paragraph (2).
1056		-	(2) Modifications. The taxable income referred to in
1057		-	paragraph (1) shall be modified by adding thereto the sum
1058		-
1059		-
1060		-	of the following amounts:
1061		-	(A) An amount equal to all amounts paid or accrued
1062		-	to the taxpayer as interest and all distributions
1063		-	received from regulated investment companies during
1064		-	the taxable year to the extent excluded from gross
1065		-	income in the computation of taxable income;
1066		-	(B) An amount equal to the amount of tax imposed by
1067		-	this Act to the extent deducted from gross income in
1068		-	the computation of taxable income for the taxable
1069		-	year;
1070		-	(C) In the case of a regulated investment company,
1071		-	an amount equal to the excess of (i) the net long-term
1072		-	capital gain for the taxable year, over (ii) the
1073		-	amount of the capital gain dividends designated as
1074		-	such in accordance with Section 852(b)(3)(C) of the
1075		-	Internal Revenue Code and any amount designated under
1076		-	Section 852(b)(3)(D) of the Internal Revenue Code,
1077		-	attributable to the taxable year (this amendatory Act
1078		-	of 1995 (Public Act 89-89) is declarative of existing
1079		-	law and is not a new enactment);
1080		-	(D) The amount of any net operating loss deduction
1081		-	taken in arriving at taxable income, other than a net
1082		-	operating loss carried forward from a taxable year
1083		-	ending prior to December 31, 1986;
1084		-	(E) For taxable years in which a net operating
1085		-	loss carryback or carryforward from a taxable year
1086		-
1087		-
1088		-	ending prior to December 31, 1986 is an element of
1089		-	taxable income under paragraph (1) of subsection (e)
1090		-	or subparagraph (E) of paragraph (2) of subsection
1091		-	(e), the amount by which addition modifications other
1092		-	than those provided by this subparagraph (E) exceeded
1093		-	subtraction modifications in such earlier taxable
1094		-	year, with the following limitations applied in the
1095		-	order that they are listed:
1096		-	(i) the addition modification relating to the
1097		-	net operating loss carried back or forward to the
1098		-	taxable year from any taxable year ending prior to
1099		-	December 31, 1986 shall be reduced by the amount
1100		-	of addition modification under this subparagraph
1101		-	(E) which related to that net operating loss and
1102		-	which was taken into account in calculating the
1103		-	base income of an earlier taxable year, and
1104		-	(ii) the addition modification relating to the
1105		-	net operating loss carried back or forward to the
1106		-	taxable year from any taxable year ending prior to
1107		-	December 31, 1986 shall not exceed the amount of
1108		-	such carryback or carryforward;
1109		-	For taxable years in which there is a net
1110		-	operating loss carryback or carryforward from more
1111		-	than one other taxable year ending prior to December
1112		-	31, 1986, the addition modification provided in this
1113		-	subparagraph (E) shall be the sum of the amounts
1114		-
1115		-
1116		-	computed independently under the preceding provisions
1117		-	of this subparagraph (E) for each such taxable year;
1118		-	(E-5) For taxable years ending after December 31,
1119		-	1997, an amount equal to any eligible remediation
1120		-	costs that the corporation deducted in computing
1121		-	adjusted gross income and for which the corporation
1122		-	claims a credit under subsection (l) of Section 201;
1123		-	(E-10) For taxable years 2001 and thereafter, an
1124		-	amount equal to the bonus depreciation deduction taken
1125		-	on the taxpayer's federal income tax return for the
1126		-	taxable year under subsection (k) of Section 168 of
1127		-	the Internal Revenue Code;
1128		-	(E-11) If the taxpayer sells, transfers, abandons,
1129		-	or otherwise disposes of property for which the
1130		-	taxpayer was required in any taxable year to make an
1131		-	addition modification under subparagraph (E-10), then
1132		-	an amount equal to the aggregate amount of the
1133		-	deductions taken in all taxable years under
1134		-	subparagraph (T) with respect to that property.
1135		-	If the taxpayer continues to own property through
1136		-	the last day of the last tax year for which a
1137		-	subtraction is allowed with respect to that property
1138		-	under subparagraph (T) and for which the taxpayer was
1139		-	allowed in any taxable year to make a subtraction
1140		-	modification under subparagraph (T), then an amount
1141		-	equal to that subtraction modification.
1142		-
1143		-
1144		-	The taxpayer is required to make the addition
1145		-	modification under this subparagraph only once with
1146		-	respect to any one piece of property;
1147		-	(E-12) An amount equal to the amount otherwise
1148		-	allowed as a deduction in computing base income for
1149		-	interest paid, accrued, or incurred, directly or
1150		-	indirectly, (i) for taxable years ending on or after
1151		-	December 31, 2004, to a foreign person who would be a
1152		-	member of the same unitary business group but for the
1153		-	fact the foreign person's business activity outside
1154		-	the United States is 80% or more of the foreign
1155		-	person's total business activity and (ii) for taxable
1156		-	years ending on or after December 31, 2008, to a person
1157		-	who would be a member of the same unitary business
1158		-	group but for the fact that the person is prohibited
1159		-	under Section 1501(a)(27) from being included in the
1160		-	unitary business group because he or she is ordinarily
1161		-	required to apportion business income under different
1162		-	subsections of Section 304. The addition modification
1163		-	required by this subparagraph shall be reduced to the
1164		-	extent that dividends were included in base income of
1165		-	the unitary group for the same taxable year and
1166		-	received by the taxpayer or by a member of the
1167		-	taxpayer's unitary business group (including amounts
1168		-	included in gross income pursuant to Sections 951
1169		-	through 964 of the Internal Revenue Code and amounts
1170		-
1171		-
1172		-	included in gross income under Section 78 of the
1173		-	Internal Revenue Code) with respect to the stock of
1174		-	the same person to whom the interest was paid,
1175		-	accrued, or incurred.
1176		-	This paragraph shall not apply to the following:
1177		-	(i) an item of interest paid, accrued, or
1178		-	incurred, directly or indirectly, to a person who
1179		-	is subject in a foreign country or state, other
1180		-	than a state which requires mandatory unitary
1181		-	reporting, to a tax on or measured by net income
1182		-	with respect to such interest; or
1183		-	(ii) an item of interest paid, accrued, or
1184		-	incurred, directly or indirectly, to a person if
1185		-	the taxpayer can establish, based on a
1186		-	preponderance of the evidence, both of the
1187		-	following:
1188		-	(a) the person, during the same taxable
1189		-	year, paid, accrued, or incurred, the interest
1190		-	to a person that is not a related member, and
1191		-	(b) the transaction giving rise to the
1192		-	interest expense between the taxpayer and the
1193		-	person did not have as a principal purpose the
1194		-	avoidance of Illinois income tax, and is paid
1195		-	pursuant to a contract or agreement that
1196		-	reflects an arm's-length interest rate and
1197		-	terms; or
1198		-
1199		-
1200		-	(iii) the taxpayer can establish, based on
1201		-	clear and convincing evidence, that the interest
1202		-	paid, accrued, or incurred relates to a contract
1203		-	or agreement entered into at arm's-length rates
1204		-	and terms and the principal purpose for the
1205		-	payment is not federal or Illinois tax avoidance;
1206		-	or
1207		-	(iv) an item of interest paid, accrued, or
1208		-	incurred, directly or indirectly, to a person if
1209		-	the taxpayer establishes by clear and convincing
1210		-	evidence that the adjustments are unreasonable; or
1211		-	if the taxpayer and the Director agree in writing
1212		-	to the application or use of an alternative method
1213		-	of apportionment under Section 304(f).
1214		-	Nothing in this subsection shall preclude the
1215		-	Director from making any other adjustment
1216		-	otherwise allowed under Section 404 of this Act
1217		-	for any tax year beginning after the effective
1218		-	date of this amendment provided such adjustment is
1219		-	made pursuant to regulation adopted by the
1220		-	Department and such regulations provide methods
1221		-	and standards by which the Department will utilize
1222		-	its authority under Section 404 of this Act;
1223		-	(E-13) An amount equal to the amount of intangible
1224		-	expenses and costs otherwise allowed as a deduction in
1225		-	computing base income, and that were paid, accrued, or
1226		-
1227		-
1228		-	incurred, directly or indirectly, (i) for taxable
1229		-	years ending on or after December 31, 2004, to a
1230		-	foreign person who would be a member of the same
1231		-	unitary business group but for the fact that the
1232		-	foreign person's business activity outside the United
1233		-	States is 80% or more of that person's total business
1234		-	activity and (ii) for taxable years ending on or after
1235		-	December 31, 2008, to a person who would be a member of
1236		-	the same unitary business group but for the fact that
1237		-	the person is prohibited under Section 1501(a)(27)
1238		-	from being included in the unitary business group
1239		-	because he or she is ordinarily required to apportion
1240		-	business income under different subsections of Section
1241		-	304. The addition modification required by this
1242		-	subparagraph shall be reduced to the extent that
1243		-	dividends were included in base income of the unitary
1244		-	group for the same taxable year and received by the
1245		-	taxpayer or by a member of the taxpayer's unitary
1246		-	business group (including amounts included in gross
1247		-	income pursuant to Sections 951 through 964 of the
1248		-	Internal Revenue Code and amounts included in gross
1249		-	income under Section 78 of the Internal Revenue Code)
1250		-	with respect to the stock of the same person to whom
1251		-	the intangible expenses and costs were directly or
1252		-	indirectly paid, incurred, or accrued. The preceding
1253		-	sentence shall not apply to the extent that the same
1254		-
1255		-
1256		-	dividends caused a reduction to the addition
1257		-	modification required under Section 203(b)(2)(E-12) of
1258		-	this Act. As used in this subparagraph, the term
1259		-	"intangible expenses and costs" includes (1) expenses,
1260		-	losses, and costs for, or related to, the direct or
1261		-	indirect acquisition, use, maintenance or management,
1262		-	ownership, sale, exchange, or any other disposition of
1263		-	intangible property; (2) losses incurred, directly or
1264		-	indirectly, from factoring transactions or discounting
1265		-	transactions; (3) royalty, patent, technical, and
1266		-	copyright fees; (4) licensing fees; and (5) other
1267		-	similar expenses and costs. For purposes of this
1268		-	subparagraph, "intangible property" includes patents,
1269		-	patent applications, trade names, trademarks, service
1270		-	marks, copyrights, mask works, trade secrets, and
1271		-	similar types of intangible assets.
1272		-	This paragraph shall not apply to the following:
1273		-	(i) any item of intangible expenses or costs
1274		-	paid, accrued, or incurred, directly or
1275		-	indirectly, from a transaction with a person who
1276		-	is subject in a foreign country or state, other
1277		-	than a state which requires mandatory unitary
1278		-	reporting, to a tax on or measured by net income
1279		-	with respect to such item; or
1280		-	(ii) any item of intangible expense or cost
1281		-	paid, accrued, or incurred, directly or
1282		-
1283		-
1284		-	indirectly, if the taxpayer can establish, based
1285		-	on a preponderance of the evidence, both of the
1286		-	following:
1287		-	(a) the person during the same taxable
1288		-	year paid, accrued, or incurred, the
1289		-	intangible expense or cost to a person that is
1290		-	not a related member, and
1291		-	(b) the transaction giving rise to the
1292		-	intangible expense or cost between the
1293		-	taxpayer and the person did not have as a
1294		-	principal purpose the avoidance of Illinois
1295		-	income tax, and is paid pursuant to a contract
1296		-	or agreement that reflects arm's-length terms;
1297		-	or
1298		-	(iii) any item of intangible expense or cost
1299		-	paid, accrued, or incurred, directly or
1300		-	indirectly, from a transaction with a person if
1301		-	the taxpayer establishes by clear and convincing
1302		-	evidence, that the adjustments are unreasonable;
1303		-	or if the taxpayer and the Director agree in
1304		-	writing to the application or use of an
1305		-	alternative method of apportionment under Section
1306		-	304(f);
1307		-	Nothing in this subsection shall preclude the
1308		-	Director from making any other adjustment
1309		-	otherwise allowed under Section 404 of this Act
1310		-
1311		-
1312		-	for any tax year beginning after the effective
1313		-	date of this amendment provided such adjustment is
1314		-	made pursuant to regulation adopted by the
1315		-	Department and such regulations provide methods
1316		-	and standards by which the Department will utilize
1317		-	its authority under Section 404 of this Act;
1318		-	(E-14) For taxable years ending on or after
1319		-	December 31, 2008, an amount equal to the amount of
1320		-	insurance premium expenses and costs otherwise allowed
1321		-	as a deduction in computing base income, and that were
1322		-	paid, accrued, or incurred, directly or indirectly, to
1323		-	a person who would be a member of the same unitary
1324		-	business group but for the fact that the person is
1325		-	prohibited under Section 1501(a)(27) from being
1326		-	included in the unitary business group because he or
1327		-	she is ordinarily required to apportion business
1328		-	income under different subsections of Section 304. The
1329		-	addition modification required by this subparagraph
1330		-	shall be reduced to the extent that dividends were
1331		-	included in base income of the unitary group for the
1332		-	same taxable year and received by the taxpayer or by a
1333		-	member of the taxpayer's unitary business group
1334		-	(including amounts included in gross income under
1335		-	Sections 951 through 964 of the Internal Revenue Code
1336		-	and amounts included in gross income under Section 78
1337		-	of the Internal Revenue Code) with respect to the
1338		-
1339		-
1340		-	stock of the same person to whom the premiums and costs
1341		-	were directly or indirectly paid, incurred, or
1342		-	accrued. The preceding sentence does not apply to the
1343		-	extent that the same dividends caused a reduction to
1344		-	the addition modification required under Section
1345		-	203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1346		-	Act;
1347		-	(E-15) For taxable years beginning after December
1348		-	31, 2008, any deduction for dividends paid by a
1349		-	captive real estate investment trust that is allowed
1350		-	to a real estate investment trust under Section
1351		-	857(b)(2)(B) of the Internal Revenue Code for
1352		-	dividends paid;
1353		-	(E-16) An amount equal to the credit allowable to
1354		-	the taxpayer under Section 218(a) of this Act,
1355		-	determined without regard to Section 218(c) of this
1356		-	Act;
1357		-	(E-17) For taxable years ending on or after
1358		-	December 31, 2017, an amount equal to the deduction
1359		-	allowed under Section 199 of the Internal Revenue Code
1360		-	for the taxable year;
1361		-	(E-18) for taxable years beginning after December
1362		-	31, 2018, an amount equal to the deduction allowed
1363		-	under Section 250(a)(1)(A) of the Internal Revenue
1364		-	Code for the taxable year;
1365		-	(E-19) for taxable years ending on or after June
1366		-
1367		-
1368		-	30, 2021, an amount equal to the deduction allowed
1369		-	under Section 250(a)(1)(B)(i) of the Internal Revenue
1370		-	Code for the taxable year;
1371		-	(E-20) for taxable years ending on or after June
1372		-	30, 2021, an amount equal to the deduction allowed
1373		-	under Sections 243(e) and 245A(a) of the Internal
1374		-	Revenue Code for the taxable year.
1375		-	and by deducting from the total so obtained the sum of the
1376		-	following amounts:
1377		-	(F) An amount equal to the amount of any tax
1378		-	imposed by this Act which was refunded to the taxpayer
1379		-	and included in such total for the taxable year;
1380		-	(G) An amount equal to any amount included in such
1381		-	total under Section 78 of the Internal Revenue Code;
1382		-	(H) In the case of a regulated investment company,
1383		-	an amount equal to the amount of exempt interest
1384		-	dividends as defined in subsection (b)(5) of Section
1385		-	852 of the Internal Revenue Code, paid to shareholders
1386		-	for the taxable year;
1387		-	(I) With the exception of any amounts subtracted
1388		-	under subparagraph (J), an amount equal to the sum of
1389		-	all amounts disallowed as deductions by (i) Sections
1390		-	171(a)(2) and 265(a)(2) and amounts disallowed as
1391		-	interest expense by Section 291(a)(3) of the Internal
1392		-	Revenue Code, and all amounts of expenses allocable to
1393		-	interest and disallowed as deductions by Section
1394		-
1395		-
1396		-	265(a)(1) of the Internal Revenue Code; and (ii) for
1397		-	taxable years ending on or after August 13, 1999,
1398		-	Sections 171(a)(2), 265, 280C, 291(a)(3), and
1399		-	832(b)(5)(B)(i) of the Internal Revenue Code, plus,
1400		-	for tax years ending on or after December 31, 2011,
1401		-	amounts disallowed as deductions by Section 45G(e)(3)
1402		-	of the Internal Revenue Code and, for taxable years
1403		-	ending on or after December 31, 2008, any amount
1404		-	included in gross income under Section 87 of the
1405		-	Internal Revenue Code and the policyholders' share of
1406		-	tax-exempt interest of a life insurance company under
1407		-	Section 807(a)(2)(B) of the Internal Revenue Code (in
1408		-	the case of a life insurance company with gross income
1409		-	from a decrease in reserves for the tax year) or
1410		-	Section 807(b)(1)(B) of the Internal Revenue Code (in
1411		-	the case of a life insurance company allowed a
1412		-	deduction for an increase in reserves for the tax
1413		-	year); the provisions of this subparagraph are exempt
1414		-	from the provisions of Section 250;
1415		-	(J) An amount equal to all amounts included in
1416		-	such total which are exempt from taxation by this
1417		-	State either by reason of its statutes or Constitution
1418		-	or by reason of the Constitution, treaties or statutes
1419		-	of the United States; provided that, in the case of any
1420		-	statute of this State that exempts income derived from
1421		-	bonds or other obligations from the tax imposed under
1422		-
1423		-
1424		-	this Act, the amount exempted shall be the interest
1425		-	net of bond premium amortization;
1426		-	(K) An amount equal to those dividends included in
1427		-	such total which were paid by a corporation which
1428		-	conducts business operations in a River Edge
1429		-	Redevelopment Zone or zones created under the River
1430		-	Edge Redevelopment Zone Act and conducts substantially
1431		-	all of its operations in a River Edge Redevelopment
1432		-	Zone or zones. This subparagraph (K) is exempt from
1433		-	the provisions of Section 250;
1434		-	(L) An amount equal to those dividends included in
1435		-	such total that were paid by a corporation that
1436		-	conducts business operations in a federally designated
1437		-	Foreign Trade Zone or Sub-Zone and that is designated
1438		-	a High Impact Business located in Illinois; provided
1439		-	that dividends eligible for the deduction provided in
1440		-	subparagraph (K) of paragraph 2 of this subsection
1441		-	shall not be eligible for the deduction provided under
1442		-	this subparagraph (L);
1443		-	(M) For any taxpayer that is a financial
1444		-	organization within the meaning of Section 304(c) of
1445		-	this Act, an amount included in such total as interest
1446		-	income from a loan or loans made by such taxpayer to a
1447		-	borrower, to the extent that such a loan is secured by
1448		-	property which is eligible for the River Edge
1449		-	Redevelopment Zone Investment Credit. To determine the
1450		-
1451		-
1452		-	portion of a loan or loans that is secured by property
1453		-	eligible for a Section 201(f) investment credit to the
1454		-	borrower, the entire principal amount of the loan or
1455		-	loans between the taxpayer and the borrower should be
1456		-	divided into the basis of the Section 201(f)
1457		-	investment credit property which secures the loan or
1458		-	loans, using for this purpose the original basis of
1459		-	such property on the date that it was placed in service
1460		-	in the River Edge Redevelopment Zone. The subtraction
1461		-	modification available to the taxpayer in any year
1462		-	under this subsection shall be that portion of the
1463		-	total interest paid by the borrower with respect to
1464		-	such loan attributable to the eligible property as
1465		-	calculated under the previous sentence. This
1466		-	subparagraph (M) is exempt from the provisions of
1467		-	Section 250;
1468		-	(M-1) For any taxpayer that is a financial
1469		-	organization within the meaning of Section 304(c) of
1470		-	this Act, an amount included in such total as interest
1471		-	income from a loan or loans made by such taxpayer to a
1472		-	borrower, to the extent that such a loan is secured by
1473		-	property which is eligible for the High Impact
1474		-	Business Investment Credit. To determine the portion
1475		-	of a loan or loans that is secured by property eligible
1476		-	for a Section 201(h) investment credit to the
1477		-	borrower, the entire principal amount of the loan or
1478		-
1479		-
1480		-	loans between the taxpayer and the borrower should be
1481		-	divided into the basis of the Section 201(h)
1482		-	investment credit property which secures the loan or
1483		-	loans, using for this purpose the original basis of
1484		-	such property on the date that it was placed in service
1485		-	in a federally designated Foreign Trade Zone or
1486		-	Sub-Zone located in Illinois. No taxpayer that is
1487		-	eligible for the deduction provided in subparagraph
1488		-	(M) of paragraph (2) of this subsection shall be
1489		-	eligible for the deduction provided under this
1490		-	subparagraph (M-1). The subtraction modification
1491		-	available to taxpayers in any year under this
1492		-	subsection shall be that portion of the total interest
1493		-	paid by the borrower with respect to such loan
1494		-	attributable to the eligible property as calculated
1495		-	under the previous sentence;
1496		-	(N) Two times any contribution made during the
1497		-	taxable year to a designated zone organization to the
1498		-	extent that the contribution (i) qualifies as a
1499		-	charitable contribution under subsection (c) of
1500		-	Section 170 of the Internal Revenue Code and (ii)
1501		-	must, by its terms, be used for a project approved by
1502		-	the Department of Commerce and Economic Opportunity
1503		-	under Section 11 of the Illinois Enterprise Zone Act
1504		-	or under Section 10-10 of the River Edge Redevelopment
1505		-	Zone Act. This subparagraph (N) is exempt from the
1506		-
1507		-
1508		-	provisions of Section 250;
1509		-	(O) An amount equal to: (i) 85% for taxable years
1510		-	ending on or before December 31, 1992, or, a
1511		-	percentage equal to the percentage allowable under
1512		-	Section 243(a)(1) of the Internal Revenue Code of 1986
1513		-	for taxable years ending after December 31, 1992, of
1514		-	the amount by which dividends included in taxable
1515		-	income and received from a corporation that is not
1516		-	created or organized under the laws of the United
1517		-	States or any state or political subdivision thereof,
1518		-	including, for taxable years ending on or after
1519		-	December 31, 1988, dividends received or deemed
1520		-	received or paid or deemed paid under Sections 951
1521		-	through 965 of the Internal Revenue Code, exceed the
1522		-	amount of the modification provided under subparagraph
1523		-	(G) of paragraph (2) of this subsection (b) which is
1524		-	related to such dividends, and including, for taxable
1525		-	years ending on or after December 31, 2008, dividends
1526		-	received from a captive real estate investment trust;
1527		-	plus (ii) 100% of the amount by which dividends,
1528		-	included in taxable income and received, including,
1529		-	for taxable years ending on or after December 31,
1530		-	1988, dividends received or deemed received or paid or
1531		-	deemed paid under Sections 951 through 964 of the
1532		-	Internal Revenue Code and including, for taxable years
1533		-	ending on or after December 31, 2008, dividends
1534		-
1535		-
1536		-	received from a captive real estate investment trust,
1537		-	from any such corporation specified in clause (i) that
1538		-	would but for the provisions of Section 1504(b)(3) of
1539		-	the Internal Revenue Code be treated as a member of the
1540		-	affiliated group which includes the dividend
1541		-	recipient, exceed the amount of the modification
1542		-	provided under subparagraph (G) of paragraph (2) of
1543		-	this subsection (b) which is related to such
1544		-	dividends. For taxable years ending on or after June
1545		-	30, 2021, (i) for purposes of this subparagraph, the
1546		-	term "dividend" does not include any amount treated as
1547		-	a dividend under Section 1248 of the Internal Revenue
1548		-	Code, and (ii) this subparagraph shall not apply to
1549		-	dividends for which a deduction is allowed under
1550		-	Section 245(a) of the Internal Revenue Code. This
1551		-	subparagraph (O) is exempt from the provisions of
1552		-	Section 250 of this Act;
1553		-	(P) An amount equal to any contribution made to a
1554		-	job training project established pursuant to the Tax
1555		-	Increment Allocation Redevelopment Act;
1556		-	(Q) An amount equal to the amount of the deduction
1557		-	used to compute the federal income tax credit for
1558		-	restoration of substantial amounts held under claim of
1559		-	right for the taxable year pursuant to Section 1341 of
1560		-	the Internal Revenue Code;
1561		-	(R) On and after July 20, 1999, in the case of an
1562		-
1563		-
1564		-	attorney-in-fact with respect to whom an interinsurer
1565		-	or a reciprocal insurer has made the election under
1566		-	Section 835 of the Internal Revenue Code, 26 U.S.C.
1567		-	835, an amount equal to the excess, if any, of the
1568		-	amounts paid or incurred by that interinsurer or
1569		-	reciprocal insurer in the taxable year to the
1570		-	attorney-in-fact over the deduction allowed to that
1571		-	interinsurer or reciprocal insurer with respect to the
1572		-	attorney-in-fact under Section 835(b) of the Internal
1573		-	Revenue Code for the taxable year; the provisions of
1574		-	this subparagraph are exempt from the provisions of
1575		-	Section 250;
1576		-	(S) For taxable years ending on or after December
1577		-	31, 1997, in the case of a Subchapter S corporation, an
1578		-	amount equal to all amounts of income allocable to a
1579		-	shareholder subject to the Personal Property Tax
1580		-	Replacement Income Tax imposed by subsections (c) and
1581		-	(d) of Section 201 of this Act, including amounts
1582		-	allocable to organizations exempt from federal income
1583		-	tax by reason of Section 501(a) of the Internal
1584		-	Revenue Code. This subparagraph (S) is exempt from the
1585		-	provisions of Section 250;
1586		-	(T) For taxable years 2001 and thereafter, for the
1587		-	taxable year in which the bonus depreciation deduction
1588		-	is taken on the taxpayer's federal income tax return
1589		-	under subsection (k) of Section 168 of the Internal
1590		-
1591		-
1592		-	Revenue Code and for each applicable taxable year
1593		-	thereafter, an amount equal to "x", where:
1594		-	(1) "y" equals the amount of the depreciation
1595		-	deduction taken for the taxable year on the
1596		-	taxpayer's federal income tax return on property
1597		-	for which the bonus depreciation deduction was
1598		-	taken in any year under subsection (k) of Section
1599		-	168 of the Internal Revenue Code, but not
1600		-	including the bonus depreciation deduction;
1601		-	(2) for taxable years ending on or before
1602		-	December 31, 2005, "x" equals "y" multiplied by 30
1603		-	and then divided by 70 (or "y" multiplied by
1604		-	0.429); and
1605		-	(3) for taxable years ending after December
1606		-	31, 2005:
1607		-	(i) for property on which a bonus
1608		-	depreciation deduction of 30% of the adjusted
1609		-	basis was taken, "x" equals "y" multiplied by
1610		-	30 and then divided by 70 (or "y" multiplied
1611		-	by 0.429);
1612		-	(ii) for property on which a bonus
1613		-	depreciation deduction of 50% of the adjusted
1614		-	basis was taken, "x" equals "y" multiplied by
1615		-	1.0;
1616		-	(iii) for property on which a bonus
1617		-	depreciation deduction of 100% of the adjusted
1618		-
1619		-
1620		-	basis was taken in a taxable year ending on or
1621		-	after December 31, 2021, "x" equals the
1622		-	depreciation deduction that would be allowed
1623		-	on that property if the taxpayer had made the
1624		-	election under Section 168(k)(7) of the
1625		-	Internal Revenue Code to not claim bonus
1626		-	depreciation on that property; and
1627		-	(iv) for property on which a bonus
1628		-	depreciation deduction of a percentage other
1629		-	than 30%, 50% or 100% of the adjusted basis
1630		-	was taken in a taxable year ending on or after
1631		-	December 31, 2021, "x" equals "y" multiplied
1632		-	by 100 times the percentage bonus depreciation
1633		-	on the property (that is, 100(bonus%)) and
1634		-	then divided by 100 times 1 minus the
1635		-	percentage bonus depreciation on the property
1636		-	(that is, 100(1-bonus%)).
1637		-	The aggregate amount deducted under this
1638		-	subparagraph in all taxable years for any one piece of
1639		-	property may not exceed the amount of the bonus
1640		-	depreciation deduction taken on that property on the
1641		-	taxpayer's federal income tax return under subsection
1642		-	(k) of Section 168 of the Internal Revenue Code. This
1643		-	subparagraph (T) is exempt from the provisions of
1644		-	Section 250;
1645		-	(U) If the taxpayer sells, transfers, abandons, or
1646		-
1647		-
1648		-	otherwise disposes of property for which the taxpayer
1649		-	was required in any taxable year to make an addition
1650		-	modification under subparagraph (E-10), then an amount
1651		-	equal to that addition modification.
1652		-	If the taxpayer continues to own property through
1653		-	the last day of the last tax year for which a
1654		-	subtraction is allowed with respect to that property
1655		-	under subparagraph (T) and for which the taxpayer was
1656		-	required in any taxable year to make an addition
1657		-	modification under subparagraph (E-10), then an amount
1658		-	equal to that addition modification.
1659		-	The taxpayer is allowed to take the deduction
1660		-	under this subparagraph only once with respect to any
1661		-	one piece of property.
1662		-	This subparagraph (U) is exempt from the
1663		-	provisions of Section 250;
1664		-	(V) The amount of: (i) any interest income (net of
1665		-	the deductions allocable thereto) taken into account
1666		-	for the taxable year with respect to a transaction
1667		-	with a taxpayer that is required to make an addition
1668		-	modification with respect to such transaction under
1669		-	Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1670		-	203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1671		-	the amount of such addition modification, (ii) any
1672		-	income from intangible property (net of the deductions
1673		-	allocable thereto) taken into account for the taxable
1674		-
1675		-
1676		-	year with respect to a transaction with a taxpayer
1677		-	that is required to make an addition modification with
1678		-	respect to such transaction under Section
1679		-	203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
1680		-	203(d)(2)(D-8), but not to exceed the amount of such
1681		-	addition modification, and (iii) any insurance premium
1682		-	income (net of deductions allocable thereto) taken
1683		-	into account for the taxable year with respect to a
1684		-	transaction with a taxpayer that is required to make
1685		-	an addition modification with respect to such
1686		-	transaction under Section 203(a)(2)(D-19), Section
1687		-	203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
1688		-	203(d)(2)(D-9), but not to exceed the amount of that
1689		-	addition modification. This subparagraph (V) is exempt
1690		-	from the provisions of Section 250;
1691		-	(W) An amount equal to the interest income taken
1692		-	into account for the taxable year (net of the
1693		-	deductions allocable thereto) with respect to
1694		-	transactions with (i) a foreign person who would be a
1695		-	member of the taxpayer's unitary business group but
1696		-	for the fact that the foreign person's business
1697		-	activity outside the United States is 80% or more of
1698		-	that person's total business activity and (ii) for
1699		-	taxable years ending on or after December 31, 2008, to
1700		-	a person who would be a member of the same unitary
1701		-	business group but for the fact that the person is
1702		-
1703		-
1704		-	prohibited under Section 1501(a)(27) from being
1705		-	included in the unitary business group because he or
1706		-	she is ordinarily required to apportion business
1707		-	income under different subsections of Section 304, but
1708		-	not to exceed the addition modification required to be
1709		-	made for the same taxable year under Section
1710		-	203(b)(2)(E-12) for interest paid, accrued, or
1711		-	incurred, directly or indirectly, to the same person.
1712		-	This subparagraph (W) is exempt from the provisions of
1713		-	Section 250;
1714		-	(X) An amount equal to the income from intangible
1715		-	property taken into account for the taxable year (net
1716		-	of the deductions allocable thereto) with respect to
1717		-	transactions with (i) a foreign person who would be a
1718		-	member of the taxpayer's unitary business group but
1719		-	for the fact that the foreign person's business
1720		-	activity outside the United States is 80% or more of
1721		-	that person's total business activity and (ii) for
1722		-	taxable years ending on or after December 31, 2008, to
1723		-	a person who would be a member of the same unitary
1724		-	business group but for the fact that the person is
1725		-	prohibited under Section 1501(a)(27) from being
1726		-	included in the unitary business group because he or
1727		-	she is ordinarily required to apportion business
1728		-	income under different subsections of Section 304, but
1729		-	not to exceed the addition modification required to be
1730		-
1731		-
1732		-	made for the same taxable year under Section
1733		-	203(b)(2)(E-13) for intangible expenses and costs
1734		-	paid, accrued, or incurred, directly or indirectly, to
1735		-	the same foreign person. This subparagraph (X) is
1736		-	exempt from the provisions of Section 250;
1737		-	(Y) For taxable years ending on or after December
1738		-	31, 2011, in the case of a taxpayer who was required to
1739		-	add back any insurance premiums under Section
1740		-	203(b)(2)(E-14), such taxpayer may elect to subtract
1741		-	that part of a reimbursement received from the
1742		-	insurance company equal to the amount of the expense
1743		-	or loss (including expenses incurred by the insurance
1744		-	company) that would have been taken into account as a
1745		-	deduction for federal income tax purposes if the
1746		-	expense or loss had been uninsured. If a taxpayer
1747		-	makes the election provided for by this subparagraph
1748		-	(Y), the insurer to which the premiums were paid must
1749		-	add back to income the amount subtracted by the
1750		-	taxpayer pursuant to this subparagraph (Y). This
1751		-	subparagraph (Y) is exempt from the provisions of
1752		-	Section 250;
1753		-	(Z) The difference between the nondeductible
1754		-	controlled foreign corporation dividends under Section
1755		-	965(e)(3) of the Internal Revenue Code over the
1756		-	taxable income of the taxpayer, computed without
1757		-	regard to Section 965(e)(2)(A) of the Internal Revenue
1758		-
1759		-
1760		-	Code, and without regard to any net operating loss
1761		-	deduction. This subparagraph (Z) is exempt from the
1762		-	provisions of Section 250; and
1763		-	(AA) For taxable years beginning on or after
1764		-	January 1, 2023, for any cannabis establishment
1765		-	operating in this State and licensed under the
1766		-	Cannabis Regulation and Tax Act or any cannabis
1767		-	cultivation center or medical cannabis dispensing
1768		-	organization operating in this State and licensed
1769		-	under the Compassionate Use of Medical Cannabis
1770		-	Program Act, an amount equal to the deductions that
1771		-	were disallowed under Section 280E of the Internal
1772		-	Revenue Code for the taxable year and that would not be
1773		-	added back under this subsection. The provisions of
1774		-	this subparagraph (AA) are exempt from the provisions
1775		-	of Section 250.
1776		-	(3) Special rule. For purposes of paragraph (2)(A),
1777		-	"gross income" in the case of a life insurance company,
1778		-	for tax years ending on and after December 31, 1994, and
1779		-	prior to December 31, 2011, shall mean the gross
1780		-	investment income for the taxable year and, for tax years
1781		-	ending on or after December 31, 2011, shall mean all
1782		-	amounts included in life insurance gross income under
1783		-	Section 803(a)(3) of the Internal Revenue Code.
1784		-	(c) Trusts and estates.
1785		-
1786		-
1787		-	(1) In general. In the case of a trust or estate, base
1788		-	income means an amount equal to the taxpayer's taxable
1789		-	income for the taxable year as modified by paragraph (2).
1790		-	(2) Modifications. Subject to the provisions of
1791		-	paragraph (3), the taxable income referred to in paragraph
1792		-	(1) shall be modified by adding thereto the sum of the
1793		-	following amounts:
1794		-	(A) An amount equal to all amounts paid or accrued
1795		-	to the taxpayer as interest or dividends during the
1796		-	taxable year to the extent excluded from gross income
1797		-	in the computation of taxable income;
1798		-	(B) In the case of (i) an estate, $600; (ii) a
1799		-	trust which, under its governing instrument, is
1800		-	required to distribute all of its income currently,
1801		-	$300; and (iii) any other trust, $100, but in each such
1802		-	case, only to the extent such amount was deducted in
1803		-	the computation of taxable income;
1804		-	(C) An amount equal to the amount of tax imposed by
1805		-	this Act to the extent deducted from gross income in
1806		-	the computation of taxable income for the taxable
1807		-	year;
1808		-	(D) The amount of any net operating loss deduction
1809		-	taken in arriving at taxable income, other than a net
1810		-	operating loss carried forward from a taxable year
1811		-	ending prior to December 31, 1986;
1812		-	(E) For taxable years in which a net operating
1813		-
1814		-
1815		-	loss carryback or carryforward from a taxable year
1816		-	ending prior to December 31, 1986 is an element of
1817		-	taxable income under paragraph (1) of subsection (e)
1818		-	or subparagraph (E) of paragraph (2) of subsection
1819		-	(e), the amount by which addition modifications other
1820		-	than those provided by this subparagraph (E) exceeded
1821		-	subtraction modifications in such taxable year, with
1822		-	the following limitations applied in the order that
1823		-	they are listed:
1824		-	(i) the addition modification relating to the
1825		-	net operating loss carried back or forward to the
1826		-	taxable year from any taxable year ending prior to
1827		-	December 31, 1986 shall be reduced by the amount
1828		-	of addition modification under this subparagraph
1829		-	(E) which related to that net operating loss and
1830		-	which was taken into account in calculating the
1831		-	base income of an earlier taxable year, and
1832		-	(ii) the addition modification relating to the
1833		-	net operating loss carried back or forward to the
1834		-	taxable year from any taxable year ending prior to
1835		-	December 31, 1986 shall not exceed the amount of
1836		-	such carryback or carryforward;
1837		-	For taxable years in which there is a net
1838		-	operating loss carryback or carryforward from more
1839		-	than one other taxable year ending prior to December
1840		-	31, 1986, the addition modification provided in this
1841		-
1842		-
1843		-	subparagraph (E) shall be the sum of the amounts
1844		-	computed independently under the preceding provisions
1845		-	of this subparagraph (E) for each such taxable year;
1846		-	(F) For taxable years ending on or after January
1847		-	1, 1989, an amount equal to the tax deducted pursuant
1848		-	to Section 164 of the Internal Revenue Code if the
1849		-	trust or estate is claiming the same tax for purposes
1850		-	of the Illinois foreign tax credit under Section 601
1851		-	of this Act;
1852		-	(G) An amount equal to the amount of the capital
1853		-	gain deduction allowable under the Internal Revenue
1854		-	Code, to the extent deducted from gross income in the
1855		-	computation of taxable income;
1856		-	(G-5) For taxable years ending after December 31,
1857		-	1997, an amount equal to any eligible remediation
1858		-	costs that the trust or estate deducted in computing
1859		-	adjusted gross income and for which the trust or
1860		-	estate claims a credit under subsection (l) of Section
1861		-	201;
1862		-	(G-10) For taxable years 2001 and thereafter, an
1863		-	amount equal to the bonus depreciation deduction taken
1864		-	on the taxpayer's federal income tax return for the
1865		-	taxable year under subsection (k) of Section 168 of
1866		-	the Internal Revenue Code; and
1867		-	(G-11) If the taxpayer sells, transfers, abandons,
1868		-	or otherwise disposes of property for which the
1869		-
1870		-
1871		-	taxpayer was required in any taxable year to make an
1872		-	addition modification under subparagraph (G-10), then
1873		-	an amount equal to the aggregate amount of the
1874		-	deductions taken in all taxable years under
1875		-	subparagraph (R) with respect to that property.
1876		-	If the taxpayer continues to own property through
1877		-	the last day of the last tax year for which a
1878		-	subtraction is allowed with respect to that property
1879		-	under subparagraph (R) and for which the taxpayer was
1880		-	allowed in any taxable year to make a subtraction
1881		-	modification under subparagraph (R), then an amount
1882		-	equal to that subtraction modification.
1883		-	The taxpayer is required to make the addition
1884		-	modification under this subparagraph only once with
1885		-	respect to any one piece of property;
1886		-	(G-12) An amount equal to the amount otherwise
1887		-	allowed as a deduction in computing base income for
1888		-	interest paid, accrued, or incurred, directly or
1889		-	indirectly, (i) for taxable years ending on or after
1890		-	December 31, 2004, to a foreign person who would be a
1891		-	member of the same unitary business group but for the
1892		-	fact that the foreign person's business activity
1893		-	outside the United States is 80% or more of the foreign
1894		-	person's total business activity and (ii) for taxable
1895		-	years ending on or after December 31, 2008, to a person
1896		-	who would be a member of the same unitary business
1897		-
1898		-
1899		-	group but for the fact that the person is prohibited
1900		-	under Section 1501(a)(27) from being included in the
1901		-	unitary business group because he or she is ordinarily
1902		-	required to apportion business income under different
1903		-	subsections of Section 304. The addition modification
1904		-	required by this subparagraph shall be reduced to the
1905		-	extent that dividends were included in base income of
1906		-	the unitary group for the same taxable year and
1907		-	received by the taxpayer or by a member of the
1908		-	taxpayer's unitary business group (including amounts
1909		-	included in gross income pursuant to Sections 951
1910		-	through 964 of the Internal Revenue Code and amounts
1911		-	included in gross income under Section 78 of the
1912		-	Internal Revenue Code) with respect to the stock of
1913		-	the same person to whom the interest was paid,
1914		-	accrued, or incurred.
1915		-	This paragraph shall not apply to the following:
1916		-	(i) an item of interest paid, accrued, or
1917		-	incurred, directly or indirectly, to a person who
1918		-	is subject in a foreign country or state, other
1919		-	than a state which requires mandatory unitary
1920		-	reporting, to a tax on or measured by net income
1921		-	with respect to such interest; or
1922		-	(ii) an item of interest paid, accrued, or
1923		-	incurred, directly or indirectly, to a person if
1924		-	the taxpayer can establish, based on a
1925		-
1926		-
1927		-	preponderance of the evidence, both of the
1928		-	following:
1929		-	(a) the person, during the same taxable
1930		-	year, paid, accrued, or incurred, the interest
1931		-	to a person that is not a related member, and
1932		-	(b) the transaction giving rise to the
1933		-	interest expense between the taxpayer and the
1934		-	person did not have as a principal purpose the
1935		-	avoidance of Illinois income tax, and is paid
1936		-	pursuant to a contract or agreement that
1937		-	reflects an arm's-length interest rate and
1938		-	terms; or
1939		-	(iii) the taxpayer can establish, based on
1940		-	clear and convincing evidence, that the interest
1941		-	paid, accrued, or incurred relates to a contract
1942		-	or agreement entered into at arm's-length rates
1943		-	and terms and the principal purpose for the
1944		-	payment is not federal or Illinois tax avoidance;
1945		-	or
1946		-	(iv) an item of interest paid, accrued, or
1947		-	incurred, directly or indirectly, to a person if
1948		-	the taxpayer establishes by clear and convincing
1949		-	evidence that the adjustments are unreasonable; or
1950		-	if the taxpayer and the Director agree in writing
1951		-	to the application or use of an alternative method
1952		-	of apportionment under Section 304(f).
1953		-
1954		-
1955		-	Nothing in this subsection shall preclude the
1956		-	Director from making any other adjustment
1957		-	otherwise allowed under Section 404 of this Act
1958		-	for any tax year beginning after the effective
1959		-	date of this amendment provided such adjustment is
1960		-	made pursuant to regulation adopted by the
1961		-	Department and such regulations provide methods
1962		-	and standards by which the Department will utilize
1963		-	its authority under Section 404 of this Act;
1964		-	(G-13) An amount equal to the amount of intangible
1965		-	expenses and costs otherwise allowed as a deduction in
1966		-	computing base income, and that were paid, accrued, or
1967		-	incurred, directly or indirectly, (i) for taxable
1968		-	years ending on or after December 31, 2004, to a
1969		-	foreign person who would be a member of the same
1970		-	unitary business group but for the fact that the
1971		-	foreign person's business activity outside the United
1972		-	States is 80% or more of that person's total business
1973		-	activity and (ii) for taxable years ending on or after
1974		-	December 31, 2008, to a person who would be a member of
1975		-	the same unitary business group but for the fact that
1976		-	the person is prohibited under Section 1501(a)(27)
1977		-	from being included in the unitary business group
1978		-	because he or she is ordinarily required to apportion
1979		-	business income under different subsections of Section
1980		-	304. The addition modification required by this
1981		-
1982		-
1983		-	subparagraph shall be reduced to the extent that
1984		-	dividends were included in base income of the unitary
1985		-	group for the same taxable year and received by the
1986		-	taxpayer or by a member of the taxpayer's unitary
1987		-	business group (including amounts included in gross
1988		-	income pursuant to Sections 951 through 964 of the
1989		-	Internal Revenue Code and amounts included in gross
1990		-	income under Section 78 of the Internal Revenue Code)
1991		-	with respect to the stock of the same person to whom
1992		-	the intangible expenses and costs were directly or
1993		-	indirectly paid, incurred, or accrued. The preceding
1994		-	sentence shall not apply to the extent that the same
1995		-	dividends caused a reduction to the addition
1996		-	modification required under Section 203(c)(2)(G-12) of
1997		-	this Act. As used in this subparagraph, the term
1998		-	"intangible expenses and costs" includes: (1)
1999		-	expenses, losses, and costs for or related to the
2000		-	direct or indirect acquisition, use, maintenance or
2001		-	management, ownership, sale, exchange, or any other
2002		-	disposition of intangible property; (2) losses
2003		-	incurred, directly or indirectly, from factoring
2004		-	transactions or discounting transactions; (3) royalty,
2005		-	patent, technical, and copyright fees; (4) licensing
2006		-	fees; and (5) other similar expenses and costs. For
2007		-	purposes of this subparagraph, "intangible property"
2008		-	includes patents, patent applications, trade names,
2009		-
2010		-
2011		-	trademarks, service marks, copyrights, mask works,
2012		-	trade secrets, and similar types of intangible assets.
2013		-	This paragraph shall not apply to the following:
2014		-	(i) any item of intangible expenses or costs
2015		-	paid, accrued, or incurred, directly or
2016		-	indirectly, from a transaction with a person who
2017		-	is subject in a foreign country or state, other
2018		-	than a state which requires mandatory unitary
2019		-	reporting, to a tax on or measured by net income
2020		-	with respect to such item; or
2021		-	(ii) any item of intangible expense or cost
2022		-	paid, accrued, or incurred, directly or
2023		-	indirectly, if the taxpayer can establish, based
2024		-	on a preponderance of the evidence, both of the
2025		-	following:
2026		-	(a) the person during the same taxable
2027		-	year paid, accrued, or incurred, the
2028		-	intangible expense or cost to a person that is
2029		-	not a related member, and
2030		-	(b) the transaction giving rise to the
2031		-	intangible expense or cost between the
2032		-	taxpayer and the person did not have as a
2033		-	principal purpose the avoidance of Illinois
2034		-	income tax, and is paid pursuant to a contract
2035		-	or agreement that reflects arm's-length terms;
2036		-	or
2037		-
2038		-
2039		-	(iii) any item of intangible expense or cost
2040		-	paid, accrued, or incurred, directly or
2041		-	indirectly, from a transaction with a person if
2042		-	the taxpayer establishes by clear and convincing
2043		-	evidence, that the adjustments are unreasonable;
2044		-	or if the taxpayer and the Director agree in
2045		-	writing to the application or use of an
2046		-	alternative method of apportionment under Section
2047		-	304(f);
2048		-	Nothing in this subsection shall preclude the
2049		-	Director from making any other adjustment
2050		-	otherwise allowed under Section 404 of this Act
2051		-	for any tax year beginning after the effective
2052		-	date of this amendment provided such adjustment is
2053		-	made pursuant to regulation adopted by the
2054		-	Department and such regulations provide methods
2055		-	and standards by which the Department will utilize
2056		-	its authority under Section 404 of this Act;
2057		-	(G-14) For taxable years ending on or after
2058		-	December 31, 2008, an amount equal to the amount of
2059		-	insurance premium expenses and costs otherwise allowed
2060		-	as a deduction in computing base income, and that were
2061		-	paid, accrued, or incurred, directly or indirectly, to
2062		-	a person who would be a member of the same unitary
2063		-	business group but for the fact that the person is
2064		-	prohibited under Section 1501(a)(27) from being
2065		-
2066		-
2067		-	included in the unitary business group because he or
2068		-	she is ordinarily required to apportion business
2069		-	income under different subsections of Section 304. The
2070		-	addition modification required by this subparagraph
2071		-	shall be reduced to the extent that dividends were
2072		-	included in base income of the unitary group for the
2073		-	same taxable year and received by the taxpayer or by a
2074		-	member of the taxpayer's unitary business group
2075		-	(including amounts included in gross income under
2076		-	Sections 951 through 964 of the Internal Revenue Code
2077		-	and amounts included in gross income under Section 78
2078		-	of the Internal Revenue Code) with respect to the
2079		-	stock of the same person to whom the premiums and costs
2080		-	were directly or indirectly paid, incurred, or
2081		-	accrued. The preceding sentence does not apply to the
2082		-	extent that the same dividends caused a reduction to
2083		-	the addition modification required under Section
2084		-	203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2085		-	Act;
2086		-	(G-15) An amount equal to the credit allowable to
2087		-	the taxpayer under Section 218(a) of this Act,
2088		-	determined without regard to Section 218(c) of this
2089		-	Act;
2090		-	(G-16) For taxable years ending on or after
2091		-	December 31, 2017, an amount equal to the deduction
2092		-	allowed under Section 199 of the Internal Revenue Code
2093		-
2094		-
2095		-	for the taxable year;
2096		-	and by deducting from the total so obtained the sum of the
2097		-	following amounts:
2098		-	(H) An amount equal to all amounts included in
2099		-	such total pursuant to the provisions of Sections
2100		-	402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2101		-	of the Internal Revenue Code or included in such total
2102		-	as distributions under the provisions of any
2103		-	retirement or disability plan for employees of any
2104		-	governmental agency or unit, or retirement payments to
2105		-	retired partners, which payments are excluded in
2106		-	computing net earnings from self employment by Section
2107		-	1402 of the Internal Revenue Code and regulations
2108		-	adopted pursuant thereto;
2109		-	(I) The valuation limitation amount;
2110		-	(J) An amount equal to the amount of any tax
2111		-	imposed by this Act which was refunded to the taxpayer
2112		-	and included in such total for the taxable year;
2113		-	(K) An amount equal to all amounts included in
2114		-	taxable income as modified by subparagraphs (A), (B),
2115		-	(C), (D), (E), (F) and (G) which are exempt from
2116		-	taxation by this State either by reason of its
2117		-	statutes or Constitution or by reason of the
2118		-	Constitution, treaties or statutes of the United
2119		-	States; provided that, in the case of any statute of
2120		-	this State that exempts income derived from bonds or
2121		-
2122		-
2123		-	other obligations from the tax imposed under this Act,
2124		-	the amount exempted shall be the interest net of bond
2125		-	premium amortization;
2126		-	(L) With the exception of any amounts subtracted
2127		-	under subparagraph (K), an amount equal to the sum of
2128		-	all amounts disallowed as deductions by (i) Sections
2129		-	171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2130		-	and all amounts of expenses allocable to interest and
2131		-	disallowed as deductions by Section 265(a)(1) of the
2132		-	Internal Revenue Code; and (ii) for taxable years
2133		-	ending on or after August 13, 1999, Sections
2134		-	171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2135		-	Internal Revenue Code, plus, (iii) for taxable years
2136		-	ending on or after December 31, 2011, Section
2137		-	45G(e)(3) of the Internal Revenue Code and, for
2138		-	taxable years ending on or after December 31, 2008,
2139		-	any amount included in gross income under Section 87
2140		-	of the Internal Revenue Code; the provisions of this
2141		-	subparagraph are exempt from the provisions of Section
2142		-	250;
2143		-	(M) An amount equal to those dividends included in
2144		-	such total which were paid by a corporation which
2145		-	conducts business operations in a River Edge
2146		-	Redevelopment Zone or zones created under the River
2147		-	Edge Redevelopment Zone Act and conducts substantially
2148		-	all of its operations in a River Edge Redevelopment
2149		-
2150		-
2151		-	Zone or zones. This subparagraph (M) is exempt from
2152		-	the provisions of Section 250;
2153		-	(N) An amount equal to any contribution made to a
2154		-	job training project established pursuant to the Tax
2155		-	Increment Allocation Redevelopment Act;
2156		-	(O) An amount equal to those dividends included in
2157		-	such total that were paid by a corporation that
2158		-	conducts business operations in a federally designated
2159		-	Foreign Trade Zone or Sub-Zone and that is designated
2160		-	a High Impact Business located in Illinois; provided
2161		-	that dividends eligible for the deduction provided in
2162		-	subparagraph (M) of paragraph (2) of this subsection
2163		-	shall not be eligible for the deduction provided under
2164		-	this subparagraph (O);
2165		-	(P) An amount equal to the amount of the deduction
2166		-	used to compute the federal income tax credit for
2167		-	restoration of substantial amounts held under claim of
2168		-	right for the taxable year pursuant to Section 1341 of
2169		-	the Internal Revenue Code;
2170		-	(Q) For taxable year 1999 and thereafter, an
2171		-	amount equal to the amount of any (i) distributions,
2172		-	to the extent includible in gross income for federal
2173		-	income tax purposes, made to the taxpayer because of
2174		-	his or her status as a victim of persecution for racial
2175		-	or religious reasons by Nazi Germany or any other Axis
2176		-	regime or as an heir of the victim and (ii) items of
2177		-
2178		-
2179		-	income, to the extent includible in gross income for
2180		-	federal income tax purposes, attributable to, derived
2181		-	from or in any way related to assets stolen from,
2182		-	hidden from, or otherwise lost to a victim of
2183		-	persecution for racial or religious reasons by Nazi
2184		-	Germany or any other Axis regime immediately prior to,
2185		-	during, and immediately after World War II, including,
2186		-	but not limited to, interest on the proceeds
2187		-	receivable as insurance under policies issued to a
2188		-	victim of persecution for racial or religious reasons
2189		-	by Nazi Germany or any other Axis regime by European
2190		-	insurance companies immediately prior to and during
2191		-	World War II; provided, however, this subtraction from
2192		-	federal adjusted gross income does not apply to assets
2193		-	acquired with such assets or with the proceeds from
2194		-	the sale of such assets; provided, further, this
2195		-	paragraph shall only apply to a taxpayer who was the
2196		-	first recipient of such assets after their recovery
2197		-	and who is a victim of persecution for racial or
2198		-	religious reasons by Nazi Germany or any other Axis
2199		-	regime or as an heir of the victim. The amount of and
2200		-	the eligibility for any public assistance, benefit, or
2201		-	similar entitlement is not affected by the inclusion
2202		-	of items (i) and (ii) of this paragraph in gross income
2203		-	for federal income tax purposes. This paragraph is
2204		-	exempt from the provisions of Section 250;
2205		-
2206		-
2207		-	(R) For taxable years 2001 and thereafter, for the
2208		-	taxable year in which the bonus depreciation deduction
2209		-	is taken on the taxpayer's federal income tax return
2210		-	under subsection (k) of Section 168 of the Internal
2211		-	Revenue Code and for each applicable taxable year
2212		-	thereafter, an amount equal to "x", where:
2213		-	(1) "y" equals the amount of the depreciation
2214		-	deduction taken for the taxable year on the
2215		-	taxpayer's federal income tax return on property
2216		-	for which the bonus depreciation deduction was
2217		-	taken in any year under subsection (k) of Section
2218		-	168 of the Internal Revenue Code, but not
2219		-	including the bonus depreciation deduction;
2220		-	(2) for taxable years ending on or before
2221		-	December 31, 2005, "x" equals "y" multiplied by 30
2222		-	and then divided by 70 (or "y" multiplied by
2223		-	0.429); and
2224		-	(3) for taxable years ending after December
2225		-	31, 2005:
2226		-	(i) for property on which a bonus
2227		-	depreciation deduction of 30% of the adjusted
2228		-	basis was taken, "x" equals "y" multiplied by
2229		-	30 and then divided by 70 (or "y" multiplied
2230		-	by 0.429);
2231		-	(ii) for property on which a bonus
2232		-	depreciation deduction of 50% of the adjusted
2233		-
2234		-
2235		-	basis was taken, "x" equals "y" multiplied by
2236		-	1.0;
2237		-	(iii) for property on which a bonus
2238		-	depreciation deduction of 100% of the adjusted
2239		-	basis was taken in a taxable year ending on or
2240		-	after December 31, 2021, "x" equals the
2241		-	depreciation deduction that would be allowed
2242		-	on that property if the taxpayer had made the
2243		-	election under Section 168(k)(7) of the
2244		-	Internal Revenue Code to not claim bonus
2245		-	depreciation on that property; and
2246		-	(iv) for property on which a bonus
2247		-	depreciation deduction of a percentage other
2248		-	than 30%, 50% or 100% of the adjusted basis
2249		-	was taken in a taxable year ending on or after
2250		-	December 31, 2021, "x" equals "y" multiplied
2251		-	by 100 times the percentage bonus depreciation
2252		-	on the property (that is, 100(bonus%)) and
2253		-	then divided by 100 times 1 minus the
2254		-	percentage bonus depreciation on the property
2255		-	(that is, 100(1-bonus%)).
2256		-	The aggregate amount deducted under this
2257		-	subparagraph in all taxable years for any one piece of
2258		-	property may not exceed the amount of the bonus
2259		-	depreciation deduction taken on that property on the
2260		-	taxpayer's federal income tax return under subsection
2261		-
2262		-
2263		-	(k) of Section 168 of the Internal Revenue Code. This
2264		-	subparagraph (R) is exempt from the provisions of
2265		-	Section 250;
2266		-	(S) If the taxpayer sells, transfers, abandons, or
2267		-	otherwise disposes of property for which the taxpayer
2268		-	was required in any taxable year to make an addition
2269		-	modification under subparagraph (G-10), then an amount
2270		-	equal to that addition modification.
2271		-	If the taxpayer continues to own property through
2272		-	the last day of the last tax year for which a
2273		-	subtraction is allowed with respect to that property
2274		-	under subparagraph (R) and for which the taxpayer was
2275		-	required in any taxable year to make an addition
2276		-	modification under subparagraph (G-10), then an amount
2277		-	equal to that addition modification.
2278		-	The taxpayer is allowed to take the deduction
2279		-	under this subparagraph only once with respect to any
2280		-	one piece of property.
2281		-	This subparagraph (S) is exempt from the
2282		-	provisions of Section 250;
2283		-	(T) The amount of (i) any interest income (net of
2284		-	the deductions allocable thereto) taken into account
2285		-	for the taxable year with respect to a transaction
2286		-	with a taxpayer that is required to make an addition
2287		-	modification with respect to such transaction under
2288		-	Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2289		-
2290		-
2291		-	203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2292		-	the amount of such addition modification and (ii) any
2293		-	income from intangible property (net of the deductions
2294		-	allocable thereto) taken into account for the taxable
2295		-	year with respect to a transaction with a taxpayer
2296		-	that is required to make an addition modification with
2297		-	respect to such transaction under Section
2298		-	203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2299		-	203(d)(2)(D-8), but not to exceed the amount of such
2300		-	addition modification. This subparagraph (T) is exempt
2301		-	from the provisions of Section 250;
2302		-	(U) An amount equal to the interest income taken
2303		-	into account for the taxable year (net of the
2304		-	deductions allocable thereto) with respect to
2305		-	transactions with (i) a foreign person who would be a
2306		-	member of the taxpayer's unitary business group but
2307		-	for the fact the foreign person's business activity
2308		-	outside the United States is 80% or more of that
2309		-	person's total business activity and (ii) for taxable
2310		-	years ending on or after December 31, 2008, to a person
2311		-	who would be a member of the same unitary business
2312		-	group but for the fact that the person is prohibited
2313		-	under Section 1501(a)(27) from being included in the
2314		-	unitary business group because he or she is ordinarily
2315		-	required to apportion business income under different
2316		-	subsections of Section 304, but not to exceed the
2317		-
2318		-
2319		-	addition modification required to be made for the same
2320		-	taxable year under Section 203(c)(2)(G-12) for
2321		-	interest paid, accrued, or incurred, directly or
2322		-	indirectly, to the same person. This subparagraph (U)
2323		-	is exempt from the provisions of Section 250;
2324		-	(V) An amount equal to the income from intangible
2325		-	property taken into account for the taxable year (net
2326		-	of the deductions allocable thereto) with respect to
2327		-	transactions with (i) a foreign person who would be a
2328		-	member of the taxpayer's unitary business group but
2329		-	for the fact that the foreign person's business
2330		-	activity outside the United States is 80% or more of
2331		-	that person's total business activity and (ii) for
2332		-	taxable years ending on or after December 31, 2008, to
2333		-	a person who would be a member of the same unitary
2334		-	business group but for the fact that the person is
2335		-	prohibited under Section 1501(a)(27) from being
2336		-	included in the unitary business group because he or
2337		-	she is ordinarily required to apportion business
2338		-	income under different subsections of Section 304, but
2339		-	not to exceed the addition modification required to be
2340		-	made for the same taxable year under Section
2341		-	203(c)(2)(G-13) for intangible expenses and costs
2342		-	paid, accrued, or incurred, directly or indirectly, to
2343		-	the same foreign person. This subparagraph (V) is
2344		-	exempt from the provisions of Section 250;
2345		-
2346		-
2347		-	(W) in the case of an estate, an amount equal to
2348		-	all amounts included in such total pursuant to the
2349		-	provisions of Section 111 of the Internal Revenue Code
2350		-	as a recovery of items previously deducted by the
2351		-	decedent from adjusted gross income in the computation
2352		-	of taxable income. This subparagraph (W) is exempt
2353		-	from Section 250;
2354		-	(X) an amount equal to the refund included in such
2355		-	total of any tax deducted for federal income tax
2356		-	purposes, to the extent that deduction was added back
2357		-	under subparagraph (F). This subparagraph (X) is
2358		-	exempt from the provisions of Section 250;
2359		-	(Y) For taxable years ending on or after December
2360		-	31, 2011, in the case of a taxpayer who was required to
2361		-	add back any insurance premiums under Section
2362		-	203(c)(2)(G-14), such taxpayer may elect to subtract
2363		-	that part of a reimbursement received from the
2364		-	insurance company equal to the amount of the expense
2365		-	or loss (including expenses incurred by the insurance
2366		-	company) that would have been taken into account as a
2367		-	deduction for federal income tax purposes if the
2368		-	expense or loss had been uninsured. If a taxpayer
2369		-	makes the election provided for by this subparagraph
2370		-	(Y), the insurer to which the premiums were paid must
2371		-	add back to income the amount subtracted by the
2372		-	taxpayer pursuant to this subparagraph (Y). This
2373		-
2374		-
2375		-	subparagraph (Y) is exempt from the provisions of
2376		-	Section 250;
2377		-	(Z) For taxable years beginning after December 31,
2378		-	2018 and before January 1, 2026, the amount of excess
2379		-	business loss of the taxpayer disallowed as a
2380		-	deduction by Section 461(l)(1)(B) of the Internal
2381		-	Revenue Code; and
2382		-	(AA) For taxable years beginning on or after
2383		-	January 1, 2023, for any cannabis establishment
2384		-	operating in this State and licensed under the
2385		-	Cannabis Regulation and Tax Act or any cannabis
2386		-	cultivation center or medical cannabis dispensing
2387		-	organization operating in this State and licensed
2388		-	under the Compassionate Use of Medical Cannabis
2389		-	Program Act, an amount equal to the deductions that
2390		-	were disallowed under Section 280E of the Internal
2391		-	Revenue Code for the taxable year and that would not be
2392		-	added back under this subsection. The provisions of
2393		-	this subparagraph (AA) are exempt from the provisions
2394		-	of Section 250.
2395		-	(3) Limitation. The amount of any modification
2396		-	otherwise required under this subsection shall, under
2397		-	regulations prescribed by the Department, be adjusted by
2398		-	any amounts included therein which were properly paid,
2399		-	credited, or required to be distributed, or permanently
2400		-	set aside for charitable purposes pursuant to Internal
2401		-
2402		-
2403		-	Revenue Code Section 642(c) during the taxable year.
2404		-	(d) Partnerships.
2405		-	(1) In general. In the case of a partnership, base
2406		-	income means an amount equal to the taxpayer's taxable
2407		-	income for the taxable year as modified by paragraph (2).
2408		-	(2) Modifications. The taxable income referred to in
2409		-	paragraph (1) shall be modified by adding thereto the sum
2410		-	of the following amounts:
2411		-	(A) An amount equal to all amounts paid or accrued
2412		-	to the taxpayer as interest or dividends during the
2413		-	taxable year to the extent excluded from gross income
2414		-	in the computation of taxable income;
2415		-	(B) An amount equal to the amount of tax imposed by
2416		-	this Act to the extent deducted from gross income for
2417		-	the taxable year;
2418		-	(C) The amount of deductions allowed to the
2419		-	partnership pursuant to Section 707 (c) of the
2420		-	Internal Revenue Code in calculating its taxable
2421		-	income;
2422		-	(D) An amount equal to the amount of the capital
2423		-	gain deduction allowable under the Internal Revenue
2424		-	Code, to the extent deducted from gross income in the
2425		-	computation of taxable income;
2426		-	(D-5) For taxable years 2001 and thereafter, an
2427		-	amount equal to the bonus depreciation deduction taken
2428		-
2429		-
2430		-	on the taxpayer's federal income tax return for the
2431		-	taxable year under subsection (k) of Section 168 of
2432		-	the Internal Revenue Code;
2433		-	(D-6) If the taxpayer sells, transfers, abandons,
2434		-	or otherwise disposes of property for which the
2435		-	taxpayer was required in any taxable year to make an
2436		-	addition modification under subparagraph (D-5), then
2437		-	an amount equal to the aggregate amount of the
2438		-	deductions taken in all taxable years under
2439		-	subparagraph (O) with respect to that property.
2440		-	If the taxpayer continues to own property through
2441		-	the last day of the last tax year for which a
2442		-	subtraction is allowed with respect to that property
2443		-	under subparagraph (O) and for which the taxpayer was
2444		-	allowed in any taxable year to make a subtraction
2445		-	modification under subparagraph (O), then an amount
2446		-	equal to that subtraction modification.
2447		-	The taxpayer is required to make the addition
2448		-	modification under this subparagraph only once with
2449		-	respect to any one piece of property;
2450		-	(D-7) An amount equal to the amount otherwise
2451		-	allowed as a deduction in computing base income for
2452		-	interest paid, accrued, or incurred, directly or
2453		-	indirectly, (i) for taxable years ending on or after
2454		-	December 31, 2004, to a foreign person who would be a
2455		-	member of the same unitary business group but for the
2456		-
2457		-
2458		-	fact the foreign person's business activity outside
2459		-	the United States is 80% or more of the foreign
2460		-	person's total business activity and (ii) for taxable
2461		-	years ending on or after December 31, 2008, to a person
2462		-	who would be a member of the same unitary business
2463		-	group but for the fact that the person is prohibited
2464		-	under Section 1501(a)(27) from being included in the
2465		-	unitary business group because he or she is ordinarily
2466		-	required to apportion business income under different
2467		-	subsections of Section 304. The addition modification
2468		-	required by this subparagraph shall be reduced to the
2469		-	extent that dividends were included in base income of
2470		-	the unitary group for the same taxable year and
2471		-	received by the taxpayer or by a member of the
2472		-	taxpayer's unitary business group (including amounts
2473		-	included in gross income pursuant to Sections 951
2474		-	through 964 of the Internal Revenue Code and amounts
2475		-	included in gross income under Section 78 of the
2476		-	Internal Revenue Code) with respect to the stock of
2477		-	the same person to whom the interest was paid,
2478		-	accrued, or incurred.
2479		-	This paragraph shall not apply to the following:
2480		-	(i) an item of interest paid, accrued, or
2481		-	incurred, directly or indirectly, to a person who
2482		-	is subject in a foreign country or state, other
2483		-	than a state which requires mandatory unitary
2484		-
2485		-
2486		-	reporting, to a tax on or measured by net income
2487		-	with respect to such interest; or
2488		-	(ii) an item of interest paid, accrued, or
2489		-	incurred, directly or indirectly, to a person if
2490		-	the taxpayer can establish, based on a
2491		-	preponderance of the evidence, both of the
2492		-	following:
2493		-	(a) the person, during the same taxable
2494		-	year, paid, accrued, or incurred, the interest
2495		-	to a person that is not a related member, and
2496		-	(b) the transaction giving rise to the
2497		-	interest expense between the taxpayer and the
2498		-	person did not have as a principal purpose the
2499		-	avoidance of Illinois income tax, and is paid
2500		-	pursuant to a contract or agreement that
2501		-	reflects an arm's-length interest rate and
2502		-	terms; or
2503		-	(iii) the taxpayer can establish, based on
2504		-	clear and convincing evidence, that the interest
2505		-	paid, accrued, or incurred relates to a contract
2506		-	or agreement entered into at arm's-length rates
2507		-	and terms and the principal purpose for the
2508		-	payment is not federal or Illinois tax avoidance;
2509		-	or
2510		-	(iv) an item of interest paid, accrued, or
2511		-	incurred, directly or indirectly, to a person if
2512		-
2513		-
2514		-	the taxpayer establishes by clear and convincing
2515		-	evidence that the adjustments are unreasonable; or
2516		-	if the taxpayer and the Director agree in writing
2517		-	to the application or use of an alternative method
2518		-	of apportionment under Section 304(f).
2519		-	Nothing in this subsection shall preclude the
2520		-	Director from making any other adjustment
2521		-	otherwise allowed under Section 404 of this Act
2522		-	for any tax year beginning after the effective
2523		-	date of this amendment provided such adjustment is
2524		-	made pursuant to regulation adopted by the
2525		-	Department and such regulations provide methods
2526		-	and standards by which the Department will utilize
2527		-	its authority under Section 404 of this Act; and
2528		-	(D-8) An amount equal to the amount of intangible
2529		-	expenses and costs otherwise allowed as a deduction in
2530		-	computing base income, and that were paid, accrued, or
2531		-	incurred, directly or indirectly, (i) for taxable
2532		-	years ending on or after December 31, 2004, to a
2533		-	foreign person who would be a member of the same
2534		-	unitary business group but for the fact that the
2535		-	foreign person's business activity outside the United
2536		-	States is 80% or more of that person's total business
2537		-	activity and (ii) for taxable years ending on or after
2538		-	December 31, 2008, to a person who would be a member of
2539		-	the same unitary business group but for the fact that
2540		-
2541		-
2542		-	the person is prohibited under Section 1501(a)(27)
2543		-	from being included in the unitary business group
2544		-	because he or she is ordinarily required to apportion
2545		-	business income under different subsections of Section
2546		-	304. The addition modification required by this
2547		-	subparagraph shall be reduced to the extent that
2548		-	dividends were included in base income of the unitary
2549		-	group for the same taxable year and received by the
2550		-	taxpayer or by a member of the taxpayer's unitary
2551		-	business group (including amounts included in gross
2552		-	income pursuant to Sections 951 through 964 of the
2553		-	Internal Revenue Code and amounts included in gross
2554		-	income under Section 78 of the Internal Revenue Code)
2555		-	with respect to the stock of the same person to whom
2556		-	the intangible expenses and costs were directly or
2557		-	indirectly paid, incurred or accrued. The preceding
2558		-	sentence shall not apply to the extent that the same
2559		-	dividends caused a reduction to the addition
2560		-	modification required under Section 203(d)(2)(D-7) of
2561		-	this Act. As used in this subparagraph, the term
2562		-	"intangible expenses and costs" includes (1) expenses,
2563		-	losses, and costs for, or related to, the direct or
2564		-	indirect acquisition, use, maintenance or management,
2565		-	ownership, sale, exchange, or any other disposition of
2566		-	intangible property; (2) losses incurred, directly or
2567		-	indirectly, from factoring transactions or discounting
2568		-
2569		-
2570		-	transactions; (3) royalty, patent, technical, and
2571		-	copyright fees; (4) licensing fees; and (5) other
2572		-	similar expenses and costs. For purposes of this
2573		-	subparagraph, "intangible property" includes patents,
2574		-	patent applications, trade names, trademarks, service
2575		-	marks, copyrights, mask works, trade secrets, and
2576		-	similar types of intangible assets;
2577		-	This paragraph shall not apply to the following:
2578		-	(i) any item of intangible expenses or costs
2579		-	paid, accrued, or incurred, directly or
2580		-	indirectly, from a transaction with a person who
2581		-	is subject in a foreign country or state, other
2582		-	than a state which requires mandatory unitary
2583		-	reporting, to a tax on or measured by net income
2584		-	with respect to such item; or
2585		-	(ii) any item of intangible expense or cost
2586		-	paid, accrued, or incurred, directly or
2587		-	indirectly, if the taxpayer can establish, based
2588		-	on a preponderance of the evidence, both of the
2589		-	following:
2590		-	(a) the person during the same taxable
2591		-	year paid, accrued, or incurred, the
2592		-	intangible expense or cost to a person that is
2593		-	not a related member, and
2594		-	(b) the transaction giving rise to the
2595		-	intangible expense or cost between the
2596		-
2597		-
2598		-	taxpayer and the person did not have as a
2599		-	principal purpose the avoidance of Illinois
2600		-	income tax, and is paid pursuant to a contract
2601		-	or agreement that reflects arm's-length terms;
2602		-	or
2603		-	(iii) any item of intangible expense or cost
2604		-	paid, accrued, or incurred, directly or
2605		-	indirectly, from a transaction with a person if
2606		-	the taxpayer establishes by clear and convincing
2607		-	evidence, that the adjustments are unreasonable;
2608		-	or if the taxpayer and the Director agree in
2609		-	writing to the application or use of an
2610		-	alternative method of apportionment under Section
2611		-	304(f);
2612		-	Nothing in this subsection shall preclude the
2613		-	Director from making any other adjustment
2614		-	otherwise allowed under Section 404 of this Act
2615		-	for any tax year beginning after the effective
2616		-	date of this amendment provided such adjustment is
2617		-	made pursuant to regulation adopted by the
2618		-	Department and such regulations provide methods
2619		-	and standards by which the Department will utilize
2620		-	its authority under Section 404 of this Act;
2621		-	(D-9) For taxable years ending on or after
2622		-	December 31, 2008, an amount equal to the amount of
2623		-	insurance premium expenses and costs otherwise allowed
2624		-
2625		-
2626		-	as a deduction in computing base income, and that were
2627		-	paid, accrued, or incurred, directly or indirectly, to
2628		-	a person who would be a member of the same unitary
2629		-	business group but for the fact that the person is
2630		-	prohibited under Section 1501(a)(27) from being
2631		-	included in the unitary business group because he or
2632		-	she is ordinarily required to apportion business
2633		-	income under different subsections of Section 304. The
2634		-	addition modification required by this subparagraph
2635		-	shall be reduced to the extent that dividends were
2636		-	included in base income of the unitary group for the
2637		-	same taxable year and received by the taxpayer or by a
2638		-	member of the taxpayer's unitary business group
2639		-	(including amounts included in gross income under
2640		-	Sections 951 through 964 of the Internal Revenue Code
2641		-	and amounts included in gross income under Section 78
2642		-	of the Internal Revenue Code) with respect to the
2643		-	stock of the same person to whom the premiums and costs
2644		-	were directly or indirectly paid, incurred, or
2645		-	accrued. The preceding sentence does not apply to the
2646		-	extent that the same dividends caused a reduction to
2647		-	the addition modification required under Section
2648		-	203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
2649		-	(D-10) An amount equal to the credit allowable to
2650		-	the taxpayer under Section 218(a) of this Act,
2651		-	determined without regard to Section 218(c) of this
2652		-
2653		-
2654		-	Act;
2655		-	(D-11) For taxable years ending on or after
2656		-	December 31, 2017, an amount equal to the deduction
2657		-	allowed under Section 199 of the Internal Revenue Code
2658		-	for the taxable year;
2659		-	and by deducting from the total so obtained the following
2660		-	amounts:
2661		-	(E) The valuation limitation amount;
2662		-	(F) An amount equal to the amount of any tax
2663		-	imposed by this Act which was refunded to the taxpayer
2664		-	and included in such total for the taxable year;
2665		-	(G) An amount equal to all amounts included in
2666		-	taxable income as modified by subparagraphs (A), (B),
2667		-	(C) and (D) which are exempt from taxation by this
2668		-	State either by reason of its statutes or Constitution
2669		-	or by reason of the Constitution, treaties or statutes
2670		-	of the United States; provided that, in the case of any
2671		-	statute of this State that exempts income derived from
2672		-	bonds or other obligations from the tax imposed under
2673		-	this Act, the amount exempted shall be the interest
2674		-	net of bond premium amortization;
2675		-	(H) Any income of the partnership which
2676		-	constitutes personal service income as defined in
2677		-	Section 1348(b)(1) of the Internal Revenue Code (as in
2678		-	effect December 31, 1981) or a reasonable allowance
2679		-	for compensation paid or accrued for services rendered
2680		-
2681		-
2682		-	by partners to the partnership, whichever is greater;
2683		-	this subparagraph (H) is exempt from the provisions of
2684		-	Section 250;
2685		-	(I) An amount equal to all amounts of income
2686		-	distributable to an entity subject to the Personal
2687		-	Property Tax Replacement Income Tax imposed by
2688		-	subsections (c) and (d) of Section 201 of this Act
2689		-	including amounts distributable to organizations
2690		-	exempt from federal income tax by reason of Section
2691		-	501(a) of the Internal Revenue Code; this subparagraph
2692		-	(I) is exempt from the provisions of Section 250;
2693		-	(J) With the exception of any amounts subtracted
2694		-	under subparagraph (G), an amount equal to the sum of
2695		-	all amounts disallowed as deductions by (i) Sections
2696		-	171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2697		-	and all amounts of expenses allocable to interest and
2698		-	disallowed as deductions by Section 265(a)(1) of the
2699		-	Internal Revenue Code; and (ii) for taxable years
2700		-	ending on or after August 13, 1999, Sections
2701		-	171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2702		-	Internal Revenue Code, plus, (iii) for taxable years
2703		-	ending on or after December 31, 2011, Section
2704		-	45G(e)(3) of the Internal Revenue Code and, for
2705		-	taxable years ending on or after December 31, 2008,
2706		-	any amount included in gross income under Section 87
2707		-	of the Internal Revenue Code; the provisions of this
2708		-
2709		-
2710		-	subparagraph are exempt from the provisions of Section
2711		-	250;
2712		-	(K) An amount equal to those dividends included in
2713		-	such total which were paid by a corporation which
2714		-	conducts business operations in a River Edge
2715		-	Redevelopment Zone or zones created under the River
2716		-	Edge Redevelopment Zone Act and conducts substantially
2717		-	all of its operations from a River Edge Redevelopment
2718		-	Zone or zones. This subparagraph (K) is exempt from
2719		-	the provisions of Section 250;
2720		-	(L) An amount equal to any contribution made to a
2721		-	job training project established pursuant to the Real
2722		-	Property Tax Increment Allocation Redevelopment Act;
2723		-	(M) An amount equal to those dividends included in
2724		-	such total that were paid by a corporation that
2725		-	conducts business operations in a federally designated
2726		-	Foreign Trade Zone or Sub-Zone and that is designated
2727		-	a High Impact Business located in Illinois; provided
2728		-	that dividends eligible for the deduction provided in
2729		-	subparagraph (K) of paragraph (2) of this subsection
2730		-	shall not be eligible for the deduction provided under
2731		-	this subparagraph (M);
2732		-	(N) An amount equal to the amount of the deduction
2733		-	used to compute the federal income tax credit for
2734		-	restoration of substantial amounts held under claim of
2735		-	right for the taxable year pursuant to Section 1341 of
2736		-
2737		-
2738		-	the Internal Revenue Code;
2739		-	(O) For taxable years 2001 and thereafter, for the
2740		-	taxable year in which the bonus depreciation deduction
2741		-	is taken on the taxpayer's federal income tax return
2742		-	under subsection (k) of Section 168 of the Internal
2743		-	Revenue Code and for each applicable taxable year
2744		-	thereafter, an amount equal to "x", where:
2745		-	(1) "y" equals the amount of the depreciation
2746		-	deduction taken for the taxable year on the
2747		-	taxpayer's federal income tax return on property
2748		-	for which the bonus depreciation deduction was
2749		-	taken in any year under subsection (k) of Section
2750		-	168 of the Internal Revenue Code, but not
2751		-	including the bonus depreciation deduction;
2752		-	(2) for taxable years ending on or before
2753		-	December 31, 2005, "x" equals "y" multiplied by 30
2754		-	and then divided by 70 (or "y" multiplied by
2755		-	0.429); and
2756		-	(3) for taxable years ending after December
2757		-	31, 2005:
2758		-	(i) for property on which a bonus
2759		-	depreciation deduction of 30% of the adjusted
2760		-	basis was taken, "x" equals "y" multiplied by
2761		-	30 and then divided by 70 (or "y" multiplied
2762		-	by 0.429);
2763		-	(ii) for property on which a bonus
2764		-
2765		-
2766		-	depreciation deduction of 50% of the adjusted
2767		-	basis was taken, "x" equals "y" multiplied by
2768		-	1.0;
2769		-	(iii) for property on which a bonus
2770		-	depreciation deduction of 100% of the adjusted
2771		-	basis was taken in a taxable year ending on or
2772		-	after December 31, 2021, "x" equals the
2773		-	depreciation deduction that would be allowed
2774		-	on that property if the taxpayer had made the
2775		-	election under Section 168(k)(7) of the
2776		-	Internal Revenue Code to not claim bonus
2777		-	depreciation on that property; and
2778		-	(iv) for property on which a bonus
2779		-	depreciation deduction of a percentage other
2780		-	than 30%, 50% or 100% of the adjusted basis
2781		-	was taken in a taxable year ending on or after
2782		-	December 31, 2021, "x" equals "y" multiplied
2783		-	by 100 times the percentage bonus depreciation
2784		-	on the property (that is, 100(bonus%)) and
2785		-	then divided by 100 times 1 minus the
2786		-	percentage bonus depreciation on the property
2787		-	(that is, 100(1-bonus%)).
2788		-	The aggregate amount deducted under this
2789		-	subparagraph in all taxable years for any one piece of
2790		-	property may not exceed the amount of the bonus
2791		-	depreciation deduction taken on that property on the
2792		-
2793		-
2794		-	taxpayer's federal income tax return under subsection
2795		-	(k) of Section 168 of the Internal Revenue Code. This
2796		-	subparagraph (O) is exempt from the provisions of
2797		-	Section 250;
2798		-	(P) If the taxpayer sells, transfers, abandons, or
2799		-	otherwise disposes of property for which the taxpayer
2800		-	was required in any taxable year to make an addition
2801		-	modification under subparagraph (D-5), then an amount
2802		-	equal to that addition modification.
2803		-	If the taxpayer continues to own property through
2804		-	the last day of the last tax year for which a
2805		-	subtraction is allowed with respect to that property
2806		-	under subparagraph (O) and for which the taxpayer was
2807		-	required in any taxable year to make an addition
2808		-	modification under subparagraph (D-5), then an amount
2809		-	equal to that addition modification.
2810		-	The taxpayer is allowed to take the deduction
2811		-	under this subparagraph only once with respect to any
2812		-	one piece of property.
2813		-	This subparagraph (P) is exempt from the
2814		-	provisions of Section 250;
2815		-	(Q) The amount of (i) any interest income (net of
2816		-	the deductions allocable thereto) taken into account
2817		-	for the taxable year with respect to a transaction
2818		-	with a taxpayer that is required to make an addition
2819		-	modification with respect to such transaction under
2820		-
2821		-
2822		-	Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2823		-	203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2824		-	the amount of such addition modification and (ii) any
2825		-	income from intangible property (net of the deductions
2826		-	allocable thereto) taken into account for the taxable
2827		-	year with respect to a transaction with a taxpayer
2828		-	that is required to make an addition modification with
2829		-	respect to such transaction under Section
2830		-	203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2831		-	203(d)(2)(D-8), but not to exceed the amount of such
2832		-	addition modification. This subparagraph (Q) is exempt
2833		-	from Section 250;
2834		-	(R) An amount equal to the interest income taken
2835		-	into account for the taxable year (net of the
2836		-	deductions allocable thereto) with respect to
2837		-	transactions with (i) a foreign person who would be a
2838		-	member of the taxpayer's unitary business group but
2839		-	for the fact that the foreign person's business
2840		-	activity outside the United States is 80% or more of
2841		-	that person's total business activity and (ii) for
2842		-	taxable years ending on or after December 31, 2008, to
2843		-	a person who would be a member of the same unitary
2844		-	business group but for the fact that the person is
2845		-	prohibited under Section 1501(a)(27) from being
2846		-	included in the unitary business group because he or
2847		-	she is ordinarily required to apportion business
2848		-
2849		-
2850		-	income under different subsections of Section 304, but
2851		-	not to exceed the addition modification required to be
2852		-	made for the same taxable year under Section
2853		-	203(d)(2)(D-7) for interest paid, accrued, or
2854		-	incurred, directly or indirectly, to the same person.
2855		-	This subparagraph (R) is exempt from Section 250;
2856		-	(S) An amount equal to the income from intangible
2857		-	property taken into account for the taxable year (net
2858		-	of the deductions allocable thereto) with respect to
2859		-	transactions with (i) a foreign person who would be a
2860		-	member of the taxpayer's unitary business group but
2861		-	for the fact that the foreign person's business
2862		-	activity outside the United States is 80% or more of
2863		-	that person's total business activity and (ii) for
2864		-	taxable years ending on or after December 31, 2008, to
2865		-	a person who would be a member of the same unitary
2866		-	business group but for the fact that the person is
2867		-	prohibited under Section 1501(a)(27) from being
2868		-	included in the unitary business group because he or
2869		-	she is ordinarily required to apportion business
2870		-	income under different subsections of Section 304, but
2871		-	not to exceed the addition modification required to be
2872		-	made for the same taxable year under Section
2873		-	203(d)(2)(D-8) for intangible expenses and costs paid,
2874		-	accrued, or incurred, directly or indirectly, to the
2875		-	same person. This subparagraph (S) is exempt from
2876		-
2877		-
2878		-	Section 250;
2879		-	(T) For taxable years ending on or after December
2880		-	31, 2011, in the case of a taxpayer who was required to
2881		-	add back any insurance premiums under Section
2882		-	203(d)(2)(D-9), such taxpayer may elect to subtract
2883		-	that part of a reimbursement received from the
2884		-	insurance company equal to the amount of the expense
2885		-	or loss (including expenses incurred by the insurance
2886		-	company) that would have been taken into account as a
2887		-	deduction for federal income tax purposes if the
2888		-	expense or loss had been uninsured. If a taxpayer
2889		-	makes the election provided for by this subparagraph
2890		-	(T), the insurer to which the premiums were paid must
2891		-	add back to income the amount subtracted by the
2892		-	taxpayer pursuant to this subparagraph (T). This
2893		-	subparagraph (T) is exempt from the provisions of
2894		-	Section 250; and
2895		-	(U) For taxable years beginning on or after
2896		-	January 1, 2023, for any cannabis establishment
2897		-	operating in this State and licensed under the
2898		-	Cannabis Regulation and Tax Act or any cannabis
2899		-	cultivation center or medical cannabis dispensing
2900		-	organization operating in this State and licensed
2901		-	under the Compassionate Use of Medical Cannabis
2902		-	Program Act, an amount equal to the deductions that
2903		-	were disallowed under Section 280E of the Internal
2904		-
2905		-
2906		-	Revenue Code for the taxable year and that would not be
2907		-	added back under this subsection. The provisions of
2908		-	this subparagraph (U) are exempt from the provisions
2909		-	of Section 250.
2910		-	(e) Gross income; adjusted gross income; taxable income.
2911		-	(1) In general. Subject to the provisions of paragraph
2912		-	(2) and subsection (b)(3), for purposes of this Section
2913		-	and Section 803(e), a taxpayer's gross income, adjusted
2914		-	gross income, or taxable income for the taxable year shall
2915		-	mean the amount of gross income, adjusted gross income or
2916		-	taxable income properly reportable for federal income tax
2917		-	purposes for the taxable year under the provisions of the
2918		-	Internal Revenue Code. Taxable income may be less than
2919		-	zero. However, for taxable years ending on or after
2920		-	December 31, 1986, net operating loss carryforwards from
2921		-	taxable years ending prior to December 31, 1986, may not
2922		-	exceed the sum of federal taxable income for the taxable
2923		-	year before net operating loss deduction, plus the excess
2924		-	of addition modifications over subtraction modifications
2925		-	for the taxable year. For taxable years ending prior to
2926		-	December 31, 1986, taxable income may never be an amount
2927		-	in excess of the net operating loss for the taxable year as
2928		-	defined in subsections (c) and (d) of Section 172 of the
2929		-	Internal Revenue Code, provided that when taxable income
2930		-	of a corporation (other than a Subchapter S corporation),
2931		-
2932		-
2933		-	trust, or estate is less than zero and addition
2934		-	modifications, other than those provided by subparagraph
2935		-	(E) of paragraph (2) of subsection (b) for corporations or
2936		-	subparagraph (E) of paragraph (2) of subsection (c) for
2937		-	trusts and estates, exceed subtraction modifications, an
2938		-	addition modification must be made under those
2939		-	subparagraphs for any other taxable year to which the
2940		-	taxable income less than zero (net operating loss) is
2941		-	applied under Section 172 of the Internal Revenue Code or
2942		-	under subparagraph (E) of paragraph (2) of this subsection
2943		-	(e) applied in conjunction with Section 172 of the
2944		-	Internal Revenue Code.
2945		-	(2) Special rule. For purposes of paragraph (1) of
2946		-	this subsection, the taxable income properly reportable
2947		-	for federal income tax purposes shall mean:
2948		-	(A) Certain life insurance companies. In the case
2949		-	of a life insurance company subject to the tax imposed
2950		-	by Section 801 of the Internal Revenue Code, life
2951		-	insurance company taxable income, plus the amount of
2952		-	distribution from pre-1984 policyholder surplus
2953		-	accounts as calculated under Section 815a of the
2954		-	Internal Revenue Code;
2955		-	(B) Certain other insurance companies. In the case
2956		-	of mutual insurance companies subject to the tax
2957		-	imposed by Section 831 of the Internal Revenue Code,
2958		-	insurance company taxable income;
2959		-
2960		-
2961		-	(C) Regulated investment companies. In the case of
2962		-	a regulated investment company subject to the tax
2963		-	imposed by Section 852 of the Internal Revenue Code,
2964		-	investment company taxable income;
2965		-	(D) Real estate investment trusts. In the case of
2966		-	a real estate investment trust subject to the tax
2967		-	imposed by Section 857 of the Internal Revenue Code,
2968		-	real estate investment trust taxable income;
2969		-	(E) Consolidated corporations. In the case of a
2970		-	corporation which is a member of an affiliated group
2971		-	of corporations filing a consolidated income tax
2972		-	return for the taxable year for federal income tax
2973		-	purposes, taxable income determined as if such
2974		-	corporation had filed a separate return for federal
2975		-	income tax purposes for the taxable year and each
2976		-	preceding taxable year for which it was a member of an
2977		-	affiliated group. For purposes of this subparagraph,
2978		-	the taxpayer's separate taxable income shall be
2979		-	determined as if the election provided by Section
2980		-	243(b)(2) of the Internal Revenue Code had been in
2981		-	effect for all such years;
2982		-	(F) Cooperatives. In the case of a cooperative
2983		-	corporation or association, the taxable income of such
2984		-	organization determined in accordance with the
2985		-	provisions of Section 1381 through 1388 of the
2986		-	Internal Revenue Code, but without regard to the
2987		-
2988		-
2989		-	prohibition against offsetting losses from patronage
2990		-	activities against income from nonpatronage
2991		-	activities; except that a cooperative corporation or
2992		-	association may make an election to follow its federal
2993		-	income tax treatment of patronage losses and
2994		-	nonpatronage losses. In the event such election is
2995		-	made, such losses shall be computed and carried over
2996		-	in a manner consistent with subsection (a) of Section
2997		-	207 of this Act and apportioned by the apportionment
2998		-	factor reported by the cooperative on its Illinois
2999		-	income tax return filed for the taxable year in which
3000		-	the losses are incurred. The election shall be
3001		-	effective for all taxable years with original returns
3002		-	due on or after the date of the election. In addition,
3003		-	the cooperative may file an amended return or returns,
3004		-	as allowed under this Act, to provide that the
3005		-	election shall be effective for losses incurred or
3006		-	carried forward for taxable years occurring prior to
3007		-	the date of the election. Once made, the election may
3008		-	only be revoked upon approval of the Director. The
3009		-	Department shall adopt rules setting forth
3010		-	requirements for documenting the elections and any
3011		-	resulting Illinois net loss and the standards to be
3012		-	used by the Director in evaluating requests to revoke
3013		-	elections. Public Act 96-932 is declaratory of
3014		-	existing law;
3015		-
3016		-
3017		-	(G) Subchapter S corporations. In the case of: (i)
3018		-	a Subchapter S corporation for which there is in
3019		-	effect an election for the taxable year under Section
3020		-	1362 of the Internal Revenue Code, the taxable income
3021		-	of such corporation determined in accordance with
3022		-	Section 1363(b) of the Internal Revenue Code, except
3023		-	that taxable income shall take into account those
3024		-	items which are required by Section 1363(b)(1) of the
3025		-	Internal Revenue Code to be separately stated; and
3026		-	(ii) a Subchapter S corporation for which there is in
3027		-	effect a federal election to opt out of the provisions
3028		-	of the Subchapter S Revision Act of 1982 and have
3029		-	applied instead the prior federal Subchapter S rules
3030		-	as in effect on July 1, 1982, the taxable income of
3031		-	such corporation determined in accordance with the
3032		-	federal Subchapter S rules as in effect on July 1,
3033		-	1982; and
3034		-	(H) Partnerships. In the case of a partnership,
3035		-	taxable income determined in accordance with Section
3036		-	703 of the Internal Revenue Code, except that taxable
3037		-	income shall take into account those items which are
3038		-	required by Section 703(a)(1) to be separately stated
3039		-	but which would be taken into account by an individual
3040		-	in calculating his taxable income.
3041		-	(3) Recapture of business expenses on disposition of
3042		-	asset or business. Notwithstanding any other law to the
3043		-
3044		-
3045		-	contrary, if in prior years income from an asset or
3046		-	business has been classified as business income and in a
3047		-	later year is demonstrated to be non-business income, then
3048		-	all expenses, without limitation, deducted in such later
3049		-	year and in the 2 immediately preceding taxable years
3050		-	related to that asset or business that generated the
3051		-	non-business income shall be added back and recaptured as
3052		-	business income in the year of the disposition of the
3053		-	asset or business. Such amount shall be apportioned to
3054		-	Illinois using the greater of the apportionment fraction
3055		-	computed for the business under Section 304 of this Act
3056		-	for the taxable year or the average of the apportionment
3057		-	fractions computed for the business under Section 304 of
3058		-	this Act for the taxable year and for the 2 immediately
3059		-	preceding taxable years.
3060		-	(f) Valuation limitation amount.
3061		-	(1) In general. The valuation limitation amount
3062		-	referred to in subsections (a)(2)(G), (c)(2)(I) and
3063		-	(d)(2)(E) is an amount equal to:
3064		-	(A) The sum of the pre-August 1, 1969 appreciation
3065		-	amounts (to the extent consisting of gain reportable
3066		-	under the provisions of Section 1245 or 1250 of the
3067		-	Internal Revenue Code) for all property in respect of
3068		-	which such gain was reported for the taxable year;
3069		-	plus
3070		-
3071		-
3072		-	(B) The lesser of (i) the sum of the pre-August 1,
3073		-	1969 appreciation amounts (to the extent consisting of
3074		-	capital gain) for all property in respect of which
3075		-	such gain was reported for federal income tax purposes
3076		-	for the taxable year, or (ii) the net capital gain for
3077		-	the taxable year, reduced in either case by any amount
3078		-	of such gain included in the amount determined under
3079		-	subsection (a)(2)(F) or (c)(2)(H).
3080		-	(2) Pre-August 1, 1969 appreciation amount.
3081		-	(A) If the fair market value of property referred
3082		-	to in paragraph (1) was readily ascertainable on
3083		-	August 1, 1969, the pre-August 1, 1969 appreciation
3084		-	amount for such property is the lesser of (i) the
3085		-	excess of such fair market value over the taxpayer's
3086		-	basis (for determining gain) for such property on that
3087		-	date (determined under the Internal Revenue Code as in
3088		-	effect on that date), or (ii) the total gain realized
3089		-	and reportable for federal income tax purposes in
3090		-	respect of the sale, exchange or other disposition of
3091		-	such property.
3092		-	(B) If the fair market value of property referred
3093		-	to in paragraph (1) was not readily ascertainable on
3094		-	August 1, 1969, the pre-August 1, 1969 appreciation
3095		-	amount for such property is that amount which bears
3096		-	the same ratio to the total gain reported in respect of
3097		-	the property for federal income tax purposes for the
3098		-
3099		-
3100		-	taxable year, as the number of full calendar months in
3101		-	that part of the taxpayer's holding period for the
3102		-	property ending July 31, 1969 bears to the number of
3103		-	full calendar months in the taxpayer's entire holding
3104		-	period for the property.
3105		-	(C) The Department shall prescribe such
3106		-	regulations as may be necessary to carry out the
3107		-	purposes of this paragraph.
3108		-	(g) Double deductions. Unless specifically provided
3109		-	otherwise, nothing in this Section shall permit the same item
3110		-	to be deducted more than once.
3111		-	(h) Legislative intention. Except as expressly provided by
3112		-	this Section there shall be no modifications or limitations on
3113		-	the amounts of income, gain, loss or deduction taken into
3114		-	account in determining gross income, adjusted gross income or
3115		-	taxable income for federal income tax purposes for the taxable
3116		-	year, or in the amount of such items entering into the
3117		-	computation of base income and net income under this Act for
3118		-	such taxable year, whether in respect of property values as of
3119		-	August 1, 1969 or otherwise.
3120		-	(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
3121		-	102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
3122		-	12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised
3123		-	9-26-23.)
	32	+	HB5290 Enrolled- 2 -LRB103 39138 CES 69280 b HB5290 Enrolled - 2 - LRB103 39138 CES 69280 b
	33	+	HB5290 Enrolled - 2 - LRB103 39138 CES 69280 b
	34	+	1 These 12 counties have approximately 475,000 residents, about
	35	+	2 112,000 of whom have medical debt in collections. 13% of Cook
	36	+	3 County residents have medical debt in collections, and their
	37	+	4 medical debts comprise more than a quarter of the statewide
	38	+	5 total.
	39	+	6 (d) While any person can accumulate medical debt, people
	40	+	7 of color are disproportionately affected. Nationally, 13% of
	41	+	8 the population has medical debt in collections, but 15% of
	42	+	9 people in communities of color have medical debt in
	43	+	10 collections. In Illinois, 14% of the population has medical
	44	+	11 debt in collections, but 20% of the population in communities
	45	+	12 of color have medical debt in collections.
	46	+	13 (e) The medical debt disparity reinforces racial inequity
	47	+	14 and exacerbates disparities in health outcomes. Structural
	48	+	15 barriers, including housing, credit, and employment
	49	+	16 opportunities, further increase financial vulnerability for
	50	+	17 communities of color, making it more difficult to pay medical
	51	+	18 bills on time.
	52	+	19 (f) Since medical debt can be difficult for hospital
	53	+	20 systems to collect, they will often settle debt obligations
	54	+	21 for a fraction of the total amount owed.
	55	+	22 (g) Cook County launched a successful effort to erase
	56	+	23 medical debt obligations for Cook County residents in
	57	+	24 partnership with a national nonprofit organization. Accounting
	58	+	25 for Cook County's investment, an additional commitment of
	59	+	26 approximately $24,500,000 would eliminate all current medical
	60	+
	61	+
	62	+
	63	+
	64	+
	65	+	HB5290 Enrolled - 2 - LRB103 39138 CES 69280 b
	66	+
	67	+
	68	+	HB5290 Enrolled- 3 -LRB103 39138 CES 69280 b HB5290 Enrolled - 3 - LRB103 39138 CES 69280 b
	69	+	HB5290 Enrolled - 3 - LRB103 39138 CES 69280 b
	70	+	1 debt for Illinois residents living at or below 400% of the
	71	+	2 federal poverty guidelines.
	72	+	3 (h) Illinois can accelerate health equity for residents
	73	+	4 across the State by establishing a Medical Debt Relief Pilot
	74	+	5 Program to provide grant funding to a nonprofit medical debt
	75	+	6 relief coordinator to relieve thousands of families from the
	76	+	7 crushing burden of medical debt.
	77	+	8 Section 10. Definitions. As used in this Act:
	78	+	9 "Eligible resident" means an individual who:
	79	+	10 (1) is a resident of the State of Illinois; and
	80	+	11 (2) has a household income at or below 400% of the
	81	+	12 federal poverty guidelines or who has medical debt equal
	82	+	13 to 5% or more of the individual's household income.
	83	+	14 "Department" means the Department of Healthcare and Family
	84	+	15 Services.
	85	+	16 "Medical debt" means an obligation to pay money arising
	86	+	17 from the receipt of health care services.
	87	+	18 "Medical debt relief" means the discharge of a patient's
	88	+	19 medical debt, including debt that is not in collections.
	89	+	20 "Nonprofit medical debt relief coordinator" means a
	90	+	21 nonprofit organization that is experienced in locating,
	91	+	22 acquiring, and relieving medical debt for individuals and that
	92	+	23 is able to discharge medical debt of an eligible resident in a
	93	+	24 manner that does not result in a taxable event for the
	94	+	25 resident.
	95	+
	96	+
	97	+
	98	+
	99	+
	100	+	HB5290 Enrolled - 3 - LRB103 39138 CES 69280 b
	101	+
	102	+
	103	+	HB5290 Enrolled- 4 -LRB103 39138 CES 69280 b HB5290 Enrolled - 4 - LRB103 39138 CES 69280 b
	104	+	HB5290 Enrolled - 4 - LRB103 39138 CES 69280 b
	105	+	1 "Pilot program" means the Medical Debt Relief Pilot
	106	+	2 Program.
	107	+	3 Section 15. Medical Debt Relief Pilot Program.
	108	+	4 (a) Subject to appropriation, the Department of Healthcare
	109	+	5 and Family Services shall establish a Medical Debt Relief
	110	+	6 Pilot Program to discharge the medical debt of eligible
	111	+	7 residents.
	112	+	8 (b) Under the pilot program, the Department shall provide
	113	+	9 grant funding to a nonprofit medical debt relief coordinator
	114	+	10 to use the grant funds and any other private funds available to
	115	+	11 negotiate and settle, to the extent possible, the medical debt
	116	+	12 of eligible residents owed to hospitals and other health care
	117	+	13 providers and entities. The hospitals and other health care
	118	+	14 providers and entities may be located outside of the State of
	119	+	15 Illinois, so long as the negotiation and settlement of medical
	120	+	16 debt is on behalf of an eligible resident.
	121	+	17 (c) The Department shall establish the pilot program no
	122	+	18 later than January 1, 2025. The Department shall administer
	123	+	19 the pilot program consistent with the requirements of the
	124	+	20 Grant Accountability and Transparency Act to determine which
	125	+	21 nonprofit medical debt relief coordinator to use, unless the
	126	+	22 Department and the State's Grant Accountability and
	127	+	23 Transparency Unit determine that only a single nonprofit
	128	+	24 medical debt relief coordinator has the capacity and
	129	+	25 willingness to carry out the duties specified in this Act. The
	130	+
	131	+
	132	+
	133	+
	134	+
	135	+	HB5290 Enrolled - 4 - LRB103 39138 CES 69280 b
	136	+
	137	+
	138	+	HB5290 Enrolled- 5 -LRB103 39138 CES 69280 b HB5290 Enrolled - 5 - LRB103 39138 CES 69280 b
	139	+	HB5290 Enrolled - 5 - LRB103 39138 CES 69280 b
	140	+	1 Department shall publish on its website any agreement,
	141	+	2 including amendments and attachments, entered into with a debt
	142	+	3 relief coordinator within 5 business days after the agreement
	143	+	4 or amendment was entered into by the Department.
	144	+	5 (d) The nonprofit medical debt relief coordinator shall:
	145	+	6 (1) Identify eligible residents who qualify for the
	146	+	7 pilot program.
	147	+	8 (2) Review the medical debt accounts of each
	148	+	9 commercial debt collection agency or health care provider
	149	+	10 willing to sell medical debt accounts of eligible
	150	+	11 residents.
	151	+	12 (3) Conduct an outreach pilot program with hospitals,
	152	+	13 hospital systems, and other providers and entities about
	153	+	14 the benefits of the Medical Debt Relief Pilot Program.
	154	+	15 Such outreach shall first be initiated with safety-net
	155	+	16 hospitals.
	156	+	17 (4) Negotiate and acquire medical debt of eligible
	157	+	18 residents from health care providers and medical debt
	158	+	19 collection agencies.
	159	+	20 (5) Within 60 days of the acquisition of an eligible
	160	+	21 resident's medical debt, notify all eligible residents
	161	+	22 whose medical debt has been discharged under the pilot
	162	+	23 program, in a manner approved by the Department, that they
	163	+	24 no longer have specified medical debt owed to the relevant
	164	+	25 health care provider or commercial debt collection agency.
	165	+	26 (6) Not attempt to seek payment from an eligible
	166	+
	167	+
	168	+
	169	+
	170	+
	171	+	HB5290 Enrolled - 5 - LRB103 39138 CES 69280 b
	172	+
	173	+
	174	+	HB5290 Enrolled- 6 -LRB103 39138 CES 69280 b HB5290 Enrolled - 6 - LRB103 39138 CES 69280 b
	175	+	HB5290 Enrolled - 6 - LRB103 39138 CES 69280 b
	176	+	1 resident for medical debt purchased by the nonprofit
	177	+	2 medical debt relief coordinator.
	178	+	3 (7) To the extent possible, give priority to hospitals
	179	+	4 and providers who serve a high percentage of volume of
	180	+	5 Medicaid customers and providers located in
	181	+	6 disproportionately impacted area zip codes.
	182	+	7 (e) The Department shall provide an annual report to the
	183	+	8 Governor and General Assembly that includes, but is not
	184	+	9 limited to:
	185	+	10 (1) The amount of medical debt purchased and
	186	+	11 discharged under the pilot program.
	187	+	12 (2) The number of eligible residents who received
	188	+	13 medical debt relief under the pilot program.
	189	+	14 (3) The demographic characteristics of the eligible
	190	+	15 residents, including, but not limited to, race, ethnicity,
	191	+	16 income level, zip code, and insurance status.
	192	+	17 (4) The number and characteristics of health care
	193	+	18 providers from whom medical debt was purchased and
	194	+	19 discharged, including, but not limited to, geography and
	195	+	20 payor mix.
	196	+	21 (f) The Department shall adopt any rules necessary to
	197	+	22 implement this Act.
	198	+	23 Section 20. Repealer. The Act is repealed on July 1, 2029.
	199	+	24 Section 100. The State Finance Act is amended by adding
	200	+
	201	+
	202	+
	203	+
	204	+
	205	+	HB5290 Enrolled - 6 - LRB103 39138 CES 69280 b
	206	+
	207	+
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	209	+	HB5290 Enrolled - 7 - LRB103 39138 CES 69280 b
	210	+	1 Sections 5.1015 and 6z-140 as follows:
	211	+	2 (30 ILCS 105/5.1015 new)
	212	+	3 Sec. 5.1015. The Medical Debt Relief Pilot Program Fund.
	213	+	4 (30 ILCS 105/6z-140 new)
	214	+	5 Sec. 6z-140. Medical Debt Relief Pilot Program Fund. The
	215	+	6 Medical Debt Relief Pilot Program Fund is created as a special
	216	+	7 fund in the State treasury. All moneys in the Fund shall be
	217	+	8 appropriated to the Department of Healthcare and Family
	218	+	9 Services and expended exclusively for the Medical Debt Relief
	219	+	10 Pilot Program to provide grant funding to a nonprofit medical
	220	+	11 debt relief coordinator to be used to discharge the medical
	221	+	12 debt of eligible residents as defined in the Medical Debt
	222	+	13 Relief Act. Based on a budget approved by the Department, the
	223	+	14 grant funding may also be used for any administrative services
	224	+	15 provided by the nonprofit medical debt relief coordinator to
	225	+	16 discharge the medical debt of eligible residents.
	226	+	17 Section 105. The Illinois Income Tax Act is amended by
	227	+	18 changing Section 203 as follows:
	228	+	19 (35 ILCS 5/203)
	229	+	20 Sec. 203. Base income defined.
	230	+	21 (a) Individuals.
	231	+	22 (1) In general. In the case of an individual, base
	232	+
	233	+
	234	+
	235	+
	236	+
	237	+	HB5290 Enrolled - 7 - LRB103 39138 CES 69280 b
	238	+
	239	+
	240	+	HB5290 Enrolled- 8 -LRB103 39138 CES 69280 b HB5290 Enrolled - 8 - LRB103 39138 CES 69280 b
	241	+	HB5290 Enrolled - 8 - LRB103 39138 CES 69280 b
	242	+	1 income means an amount equal to the taxpayer's adjusted
	243	+	2 gross income for the taxable year as modified by paragraph
	244	+	3 (2).
	245	+	4 (2) Modifications. The adjusted gross income referred
	246	+	5 to in paragraph (1) shall be modified by adding thereto
	247	+	6 the sum of the following amounts:
	248	+	7 (A) An amount equal to all amounts paid or accrued
	249	+	8 to the taxpayer as interest or dividends during the
	250	+	9 taxable year to the extent excluded from gross income
	251	+	10 in the computation of adjusted gross income, except
	252	+	11 stock dividends of qualified public utilities
	253	+	12 described in Section 305(e) of the Internal Revenue
	254	+	13 Code;
	255	+	14 (B) An amount equal to the amount of tax imposed by
	256	+	15 this Act to the extent deducted from gross income in
	257	+	16 the computation of adjusted gross income for the
	258	+	17 taxable year;
	259	+	18 (C) An amount equal to the amount received during
	260	+	19 the taxable year as a recovery or refund of real
	261	+	20 property taxes paid with respect to the taxpayer's
	262	+	21 principal residence under the Revenue Act of 1939 and
	263	+	22 for which a deduction was previously taken under
	264	+	23 subparagraph (L) of this paragraph (2) prior to July
	265	+	24 1, 1991, the retrospective application date of Article
	266	+	25 4 of Public Act 87-17. In the case of multi-unit or
	267	+	26 multi-use structures and farm dwellings, the taxes on
	268	+
	269	+
	270	+
	271	+
	272	+
	273	+	HB5290 Enrolled - 8 - LRB103 39138 CES 69280 b
	274	+
	275	+
	276	+	HB5290 Enrolled- 9 -LRB103 39138 CES 69280 b HB5290 Enrolled - 9 - LRB103 39138 CES 69280 b
	277	+	HB5290 Enrolled - 9 - LRB103 39138 CES 69280 b
	278	+	1 the taxpayer's principal residence shall be that
	279	+	2 portion of the total taxes for the entire property
	280	+	3 which is attributable to such principal residence;
	281	+	4 (D) An amount equal to the amount of the capital
	282	+	5 gain deduction allowable under the Internal Revenue
	283	+	6 Code, to the extent deducted from gross income in the
	284	+	7 computation of adjusted gross income;
	285	+	8 (D-5) An amount, to the extent not included in
	286	+	9 adjusted gross income, equal to the amount of money
	287	+	10 withdrawn by the taxpayer in the taxable year from a
	288	+	11 medical care savings account and the interest earned
	289	+	12 on the account in the taxable year of a withdrawal
	290	+	13 pursuant to subsection (b) of Section 20 of the
	291	+	14 Medical Care Savings Account Act or subsection (b) of
	292	+	15 Section 20 of the Medical Care Savings Account Act of
	293	+	16 2000;
	294	+	17 (D-10) For taxable years ending after December 31,
	295	+	18 1997, an amount equal to any eligible remediation
	296	+	19 costs that the individual deducted in computing
	297	+	20 adjusted gross income and for which the individual
	298	+	21 claims a credit under subsection (l) of Section 201;
	299	+	22 (D-15) For taxable years 2001 and thereafter, an
	300	+	23 amount equal to the bonus depreciation deduction taken
	301	+	24 on the taxpayer's federal income tax return for the
	302	+	25 taxable year under subsection (k) of Section 168 of
	303	+	26 the Internal Revenue Code;
	304	+
	305	+
	306	+
	307	+
	308	+
	309	+	HB5290 Enrolled - 9 - LRB103 39138 CES 69280 b
	310	+
	311	+
	312	+	HB5290 Enrolled- 10 -LRB103 39138 CES 69280 b HB5290 Enrolled - 10 - LRB103 39138 CES 69280 b
	313	+	HB5290 Enrolled - 10 - LRB103 39138 CES 69280 b
	314	+	1 (D-16) If the taxpayer sells, transfers, abandons,
	315	+	2 or otherwise disposes of property for which the
	316	+	3 taxpayer was required in any taxable year to make an
	317	+	4 addition modification under subparagraph (D-15), then
	318	+	5 an amount equal to the aggregate amount of the
	319	+	6 deductions taken in all taxable years under
	320	+	7 subparagraph (Z) with respect to that property.
	321	+	8 If the taxpayer continues to own property through
	322	+	9 the last day of the last tax year for which a
	323	+	10 subtraction is allowed with respect to that property
	324	+	11 under subparagraph (Z) and for which the taxpayer was
	325	+	12 allowed in any taxable year to make a subtraction
	326	+	13 modification under subparagraph (Z), then an amount
	327	+	14 equal to that subtraction modification.
	328	+	15 The taxpayer is required to make the addition
	329	+	16 modification under this subparagraph only once with
	330	+	17 respect to any one piece of property;
	331	+	18 (D-17) An amount equal to the amount otherwise
	332	+	19 allowed as a deduction in computing base income for
	333	+	20 interest paid, accrued, or incurred, directly or
	334	+	21 indirectly, (i) for taxable years ending on or after
	335	+	22 December 31, 2004, to a foreign person who would be a
	336	+	23 member of the same unitary business group but for the
	337	+	24 fact that foreign person's business activity outside
	338	+	25 the United States is 80% or more of the foreign
	339	+	26 person's total business activity and (ii) for taxable
	340	+
	341	+
	342	+
	343	+
	344	+
	345	+	HB5290 Enrolled - 10 - LRB103 39138 CES 69280 b
	346	+
	347	+
	348	+	HB5290 Enrolled- 11 -LRB103 39138 CES 69280 b HB5290 Enrolled - 11 - LRB103 39138 CES 69280 b
	349	+	HB5290 Enrolled - 11 - LRB103 39138 CES 69280 b
	350	+	1 years ending on or after December 31, 2008, to a person
	351	+	2 who would be a member of the same unitary business
	352	+	3 group but for the fact that the person is prohibited
	353	+	4 under Section 1501(a)(27) from being included in the
	354	+	5 unitary business group because he or she is ordinarily
	355	+	6 required to apportion business income under different
	356	+	7 subsections of Section 304. The addition modification
	357	+	8 required by this subparagraph shall be reduced to the
	358	+	9 extent that dividends were included in base income of
	359	+	10 the unitary group for the same taxable year and
	360	+	11 received by the taxpayer or by a member of the
	361	+	12 taxpayer's unitary business group (including amounts
	362	+	13 included in gross income under Sections 951 through
	363	+	14 964 of the Internal Revenue Code and amounts included
	364	+	15 in gross income under Section 78 of the Internal
	365	+	16 Revenue Code) with respect to the stock of the same
	366	+	17 person to whom the interest was paid, accrued, or
	367	+	18 incurred.
	368	+	19 This paragraph shall not apply to the following:
	369	+	20 (i) an item of interest paid, accrued, or
	370	+	21 incurred, directly or indirectly, to a person who
	371	+	22 is subject in a foreign country or state, other
	372	+	23 than a state which requires mandatory unitary
	373	+	24 reporting, to a tax on or measured by net income
	374	+	25 with respect to such interest; or
	375	+	26 (ii) an item of interest paid, accrued, or
	376	+
	377	+
	378	+
	379	+
	380	+
	381	+	HB5290 Enrolled - 11 - LRB103 39138 CES 69280 b
	382	+
	383	+
	384	+	HB5290 Enrolled- 12 -LRB103 39138 CES 69280 b HB5290 Enrolled - 12 - LRB103 39138 CES 69280 b
	385	+	HB5290 Enrolled - 12 - LRB103 39138 CES 69280 b
	386	+	1 incurred, directly or indirectly, to a person if
	387	+	2 the taxpayer can establish, based on a
	388	+	3 preponderance of the evidence, both of the
	389	+	4 following:
	390	+	5 (a) the person, during the same taxable
	391	+	6 year, paid, accrued, or incurred, the interest
	392	+	7 to a person that is not a related member, and
	393	+	8 (b) the transaction giving rise to the
	394	+	9 interest expense between the taxpayer and the
	395	+	10 person did not have as a principal purpose the
	396	+	11 avoidance of Illinois income tax, and is paid
	397	+	12 pursuant to a contract or agreement that
	398	+	13 reflects an arm's-length interest rate and
	399	+	14 terms; or
	400	+	15 (iii) the taxpayer can establish, based on
	401	+	16 clear and convincing evidence, that the interest
	402	+	17 paid, accrued, or incurred relates to a contract
	403	+	18 or agreement entered into at arm's-length rates
	404	+	19 and terms and the principal purpose for the
	405	+	20 payment is not federal or Illinois tax avoidance;
	406	+	21 or
	407	+	22 (iv) an item of interest paid, accrued, or
	408	+	23 incurred, directly or indirectly, to a person if
	409	+	24 the taxpayer establishes by clear and convincing
	410	+	25 evidence that the adjustments are unreasonable; or
	411	+	26 if the taxpayer and the Director agree in writing
	412	+
	413	+
	414	+
	415	+
	416	+
	417	+	HB5290 Enrolled - 12 - LRB103 39138 CES 69280 b
	418	+
	419	+
	420	+	HB5290 Enrolled- 13 -LRB103 39138 CES 69280 b HB5290 Enrolled - 13 - LRB103 39138 CES 69280 b
	421	+	HB5290 Enrolled - 13 - LRB103 39138 CES 69280 b
	422	+	1 to the application or use of an alternative method
	423	+	2 of apportionment under Section 304(f).
	424	+	3 Nothing in this subsection shall preclude the
	425	+	4 Director from making any other adjustment
	426	+	5 otherwise allowed under Section 404 of this Act
	427	+	6 for any tax year beginning after the effective
	428	+	7 date of this amendment provided such adjustment is
	429	+	8 made pursuant to regulation adopted by the
	430	+	9 Department and such regulations provide methods
	431	+	10 and standards by which the Department will utilize
	432	+	11 its authority under Section 404 of this Act;
	433	+	12 (D-18) An amount equal to the amount of intangible
	434	+	13 expenses and costs otherwise allowed as a deduction in
	435	+	14 computing base income, and that were paid, accrued, or
	436	+	15 incurred, directly or indirectly, (i) for taxable
	437	+	16 years ending on or after December 31, 2004, to a
	438	+	17 foreign person who would be a member of the same
	439	+	18 unitary business group but for the fact that the
	440	+	19 foreign person's business activity outside the United
	441	+	20 States is 80% or more of that person's total business
	442	+	21 activity and (ii) for taxable years ending on or after
	443	+	22 December 31, 2008, to a person who would be a member of
	444	+	23 the same unitary business group but for the fact that
	445	+	24 the person is prohibited under Section 1501(a)(27)
	446	+	25 from being included in the unitary business group
	447	+	26 because he or she is ordinarily required to apportion
	448	+
	449	+
	450	+
	451	+
	452	+
	453	+	HB5290 Enrolled - 13 - LRB103 39138 CES 69280 b
	454	+
	455	+
	456	+	HB5290 Enrolled- 14 -LRB103 39138 CES 69280 b HB5290 Enrolled - 14 - LRB103 39138 CES 69280 b
	457	+	HB5290 Enrolled - 14 - LRB103 39138 CES 69280 b
	458	+	1 business income under different subsections of Section
	459	+	2 304. The addition modification required by this
	460	+	3 subparagraph shall be reduced to the extent that
	461	+	4 dividends were included in base income of the unitary
	462	+	5 group for the same taxable year and received by the
	463	+	6 taxpayer or by a member of the taxpayer's unitary
	464	+	7 business group (including amounts included in gross
	465	+	8 income under Sections 951 through 964 of the Internal
	466	+	9 Revenue Code and amounts included in gross income
	467	+	10 under Section 78 of the Internal Revenue Code) with
	468	+	11 respect to the stock of the same person to whom the
	469	+	12 intangible expenses and costs were directly or
	470	+	13 indirectly paid, incurred, or accrued. The preceding
	471	+	14 sentence does not apply to the extent that the same
	472	+	15 dividends caused a reduction to the addition
	473	+	16 modification required under Section 203(a)(2)(D-17) of
	474	+	17 this Act. As used in this subparagraph, the term
	475	+	18 "intangible expenses and costs" includes (1) expenses,
	476	+	19 losses, and costs for, or related to, the direct or
	477	+	20 indirect acquisition, use, maintenance or management,
	478	+	21 ownership, sale, exchange, or any other disposition of
	479	+	22 intangible property; (2) losses incurred, directly or
	480	+	23 indirectly, from factoring transactions or discounting
	481	+	24 transactions; (3) royalty, patent, technical, and
	482	+	25 copyright fees; (4) licensing fees; and (5) other
	483	+	26 similar expenses and costs. For purposes of this
	484	+
	485	+
	486	+
	487	+
	488	+
	489	+	HB5290 Enrolled - 14 - LRB103 39138 CES 69280 b
	490	+
	491	+
	492	+	HB5290 Enrolled- 15 -LRB103 39138 CES 69280 b HB5290 Enrolled - 15 - LRB103 39138 CES 69280 b
	493	+	HB5290 Enrolled - 15 - LRB103 39138 CES 69280 b
	494	+	1 subparagraph, "intangible property" includes patents,
	495	+	2 patent applications, trade names, trademarks, service
	496	+	3 marks, copyrights, mask works, trade secrets, and
	497	+	4 similar types of intangible assets.
	498	+	5 This paragraph shall not apply to the following:
	499	+	6 (i) any item of intangible expenses or costs
	500	+	7 paid, accrued, or incurred, directly or
	501	+	8 indirectly, from a transaction with a person who
	502	+	9 is subject in a foreign country or state, other
	503	+	10 than a state which requires mandatory unitary
	504	+	11 reporting, to a tax on or measured by net income
	505	+	12 with respect to such item; or
	506	+	13 (ii) any item of intangible expense or cost
	507	+	14 paid, accrued, or incurred, directly or
	508	+	15 indirectly, if the taxpayer can establish, based
	509	+	16 on a preponderance of the evidence, both of the
	510	+	17 following:
	511	+	18 (a) the person during the same taxable
	512	+	19 year paid, accrued, or incurred, the
	513	+	20 intangible expense or cost to a person that is
	514	+	21 not a related member, and
	515	+	22 (b) the transaction giving rise to the
	516	+	23 intangible expense or cost between the
	517	+	24 taxpayer and the person did not have as a
	518	+	25 principal purpose the avoidance of Illinois
	519	+	26 income tax, and is paid pursuant to a contract
	520	+
	521	+
	522	+
	523	+
	524	+
	525	+	HB5290 Enrolled - 15 - LRB103 39138 CES 69280 b
	526	+
	527	+
	528	+	HB5290 Enrolled- 16 -LRB103 39138 CES 69280 b HB5290 Enrolled - 16 - LRB103 39138 CES 69280 b
	529	+	HB5290 Enrolled - 16 - LRB103 39138 CES 69280 b
	530	+	1 or agreement that reflects arm's-length terms;
	531	+	2 or
	532	+	3 (iii) any item of intangible expense or cost
	533	+	4 paid, accrued, or incurred, directly or
	534	+	5 indirectly, from a transaction with a person if
	535	+	6 the taxpayer establishes by clear and convincing
	536	+	7 evidence, that the adjustments are unreasonable;
	537	+	8 or if the taxpayer and the Director agree in
	538	+	9 writing to the application or use of an
	539	+	10 alternative method of apportionment under Section
	540	+	11 304(f);
	541	+	12 Nothing in this subsection shall preclude the
	542	+	13 Director from making any other adjustment
	543	+	14 otherwise allowed under Section 404 of this Act
	544	+	15 for any tax year beginning after the effective
	545	+	16 date of this amendment provided such adjustment is
	546	+	17 made pursuant to regulation adopted by the
	547	+	18 Department and such regulations provide methods
	548	+	19 and standards by which the Department will utilize
	549	+	20 its authority under Section 404 of this Act;
	550	+	21 (D-19) For taxable years ending on or after
	551	+	22 December 31, 2008, an amount equal to the amount of
	552	+	23 insurance premium expenses and costs otherwise allowed
	553	+	24 as a deduction in computing base income, and that were
	554	+	25 paid, accrued, or incurred, directly or indirectly, to
	555	+	26 a person who would be a member of the same unitary
	556	+
	557	+
	558	+
	559	+
	560	+
	561	+	HB5290 Enrolled - 16 - LRB103 39138 CES 69280 b
	562	+
	563	+
	564	+	HB5290 Enrolled- 17 -LRB103 39138 CES 69280 b HB5290 Enrolled - 17 - LRB103 39138 CES 69280 b
	565	+	HB5290 Enrolled - 17 - LRB103 39138 CES 69280 b
	566	+	1 business group but for the fact that the person is
	567	+	2 prohibited under Section 1501(a)(27) from being
	568	+	3 included in the unitary business group because he or
	569	+	4 she is ordinarily required to apportion business
	570	+	5 income under different subsections of Section 304. The
	571	+	6 addition modification required by this subparagraph
	572	+	7 shall be reduced to the extent that dividends were
	573	+	8 included in base income of the unitary group for the
	574	+	9 same taxable year and received by the taxpayer or by a
	575	+	10 member of the taxpayer's unitary business group
	576	+	11 (including amounts included in gross income under
	577	+	12 Sections 951 through 964 of the Internal Revenue Code
	578	+	13 and amounts included in gross income under Section 78
	579	+	14 of the Internal Revenue Code) with respect to the
	580	+	15 stock of the same person to whom the premiums and costs
	581	+	16 were directly or indirectly paid, incurred, or
	582	+	17 accrued. The preceding sentence does not apply to the
	583	+	18 extent that the same dividends caused a reduction to
	584	+	19 the addition modification required under Section
	585	+	20 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
	586	+	21 Act;
	587	+	22 (D-20) For taxable years beginning on or after
	588	+	23 January 1, 2002 and ending on or before December 31,
	589	+	24 2006, in the case of a distribution from a qualified
	590	+	25 tuition program under Section 529 of the Internal
	591	+	26 Revenue Code, other than (i) a distribution from a
	592	+
	593	+
	594	+
	595	+
	596	+
	597	+	HB5290 Enrolled - 17 - LRB103 39138 CES 69280 b
	598	+
	599	+
	600	+	HB5290 Enrolled- 18 -LRB103 39138 CES 69280 b HB5290 Enrolled - 18 - LRB103 39138 CES 69280 b
	601	+	HB5290 Enrolled - 18 - LRB103 39138 CES 69280 b
	602	+	1 College Savings Pool created under Section 16.5 of the
	603	+	2 State Treasurer Act or (ii) a distribution from the
	604	+	3 Illinois Prepaid Tuition Trust Fund, an amount equal
	605	+	4 to the amount excluded from gross income under Section
	606	+	5 529(c)(3)(B). For taxable years beginning on or after
	607	+	6 January 1, 2007, in the case of a distribution from a
	608	+	7 qualified tuition program under Section 529 of the
	609	+	8 Internal Revenue Code, other than (i) a distribution
	610	+	9 from a College Savings Pool created under Section 16.5
	611	+	10 of the State Treasurer Act, (ii) a distribution from
	612	+	11 the Illinois Prepaid Tuition Trust Fund, or (iii) a
	613	+	12 distribution from a qualified tuition program under
	614	+	13 Section 529 of the Internal Revenue Code that (I)
	615	+	14 adopts and determines that its offering materials
	616	+	15 comply with the College Savings Plans Network's
	617	+	16 disclosure principles and (II) has made reasonable
	618	+	17 efforts to inform in-state residents of the existence
	619	+	18 of in-state qualified tuition programs by informing
	620	+	19 Illinois residents directly and, where applicable, to
	621	+	20 inform financial intermediaries distributing the
	622	+	21 program to inform in-state residents of the existence
	623	+	22 of in-state qualified tuition programs at least
	624	+	23 annually, an amount equal to the amount excluded from
	625	+	24 gross income under Section 529(c)(3)(B).
	626	+	25 For the purposes of this subparagraph (D-20), a
	627	+	26 qualified tuition program has made reasonable efforts
	628	+
	629	+
	630	+
	631	+
	632	+
	633	+	HB5290 Enrolled - 18 - LRB103 39138 CES 69280 b
	634	+
	635	+
	636	+	HB5290 Enrolled- 19 -LRB103 39138 CES 69280 b HB5290 Enrolled - 19 - LRB103 39138 CES 69280 b
	637	+	HB5290 Enrolled - 19 - LRB103 39138 CES 69280 b
	638	+	1 if it makes disclosures (which may use the term
	639	+	2 "in-state program" or "in-state plan" and need not
	640	+	3 specifically refer to Illinois or its qualified
	641	+	4 programs by name) (i) directly to prospective
	642	+	5 participants in its offering materials or makes a
	643	+	6 public disclosure, such as a website posting; and (ii)
	644	+	7 where applicable, to intermediaries selling the
	645	+	8 out-of-state program in the same manner that the
	646	+	9 out-of-state program distributes its offering
	647	+	10 materials;
	648	+	11 (D-20.5) For taxable years beginning on or after
	649	+	12 January 1, 2018, in the case of a distribution from a
	650	+	13 qualified ABLE program under Section 529A of the
	651	+	14 Internal Revenue Code, other than a distribution from
	652	+	15 a qualified ABLE program created under Section 16.6 of
	653	+	16 the State Treasurer Act, an amount equal to the amount
	654	+	17 excluded from gross income under Section 529A(c)(1)(B)
	655	+	18 of the Internal Revenue Code;
	656	+	19 (D-21) For taxable years beginning on or after
	657	+	20 January 1, 2007, in the case of transfer of moneys from
	658	+	21 a qualified tuition program under Section 529 of the
	659	+	22 Internal Revenue Code that is administered by the
	660	+	23 State to an out-of-state program, an amount equal to
	661	+	24 the amount of moneys previously deducted from base
	662	+	25 income under subsection (a)(2)(Y) of this Section;
	663	+	26 (D-21.5) For taxable years beginning on or after
	664	+
	665	+
	666	+
	667	+
	668	+
	669	+	HB5290 Enrolled - 19 - LRB103 39138 CES 69280 b
	670	+
	671	+
	672	+	HB5290 Enrolled- 20 -LRB103 39138 CES 69280 b HB5290 Enrolled - 20 - LRB103 39138 CES 69280 b
	673	+	HB5290 Enrolled - 20 - LRB103 39138 CES 69280 b
	674	+	1 January 1, 2018, in the case of the transfer of moneys
	675	+	2 from a qualified tuition program under Section 529 or
	676	+	3 a qualified ABLE program under Section 529A of the
	677	+	4 Internal Revenue Code that is administered by this
	678	+	5 State to an ABLE account established under an
	679	+	6 out-of-state ABLE account program, an amount equal to
	680	+	7 the contribution component of the transferred amount
	681	+	8 that was previously deducted from base income under
	682	+	9 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
	683	+	10 Section;
	684	+	11 (D-22) For taxable years beginning on or after
	685	+	12 January 1, 2009, and prior to January 1, 2018, in the
	686	+	13 case of a nonqualified withdrawal or refund of moneys
	687	+	14 from a qualified tuition program under Section 529 of
	688	+	15 the Internal Revenue Code administered by the State
	689	+	16 that is not used for qualified expenses at an eligible
	690	+	17 education institution, an amount equal to the
	691	+	18 contribution component of the nonqualified withdrawal
	692	+	19 or refund that was previously deducted from base
	693	+	20 income under subsection (a)(2)(y) of this Section,
	694	+	21 provided that the withdrawal or refund did not result
	695	+	22 from the beneficiary's death or disability. For
	696	+	23 taxable years beginning on or after January 1, 2018:
	697	+	24 (1) in the case of a nonqualified withdrawal or
	698	+	25 refund, as defined under Section 16.5 of the State
	699	+	26 Treasurer Act, of moneys from a qualified tuition
	700	+
	701	+
	702	+
	703	+
	704	+
	705	+	HB5290 Enrolled - 20 - LRB103 39138 CES 69280 b
	706	+
	707	+
	708	+	HB5290 Enrolled- 21 -LRB103 39138 CES 69280 b HB5290 Enrolled - 21 - LRB103 39138 CES 69280 b
	709	+	HB5290 Enrolled - 21 - LRB103 39138 CES 69280 b
	710	+	1 program under Section 529 of the Internal Revenue Code
	711	+	2 administered by the State, an amount equal to the
	712	+	3 contribution component of the nonqualified withdrawal
	713	+	4 or refund that was previously deducted from base
	714	+	5 income under subsection (a)(2)(Y) of this Section, and
	715	+	6 (2) in the case of a nonqualified withdrawal or refund
	716	+	7 from a qualified ABLE program under Section 529A of
	717	+	8 the Internal Revenue Code administered by the State
	718	+	9 that is not used for qualified disability expenses, an
	719	+	10 amount equal to the contribution component of the
	720	+	11 nonqualified withdrawal or refund that was previously
	721	+	12 deducted from base income under subsection (a)(2)(HH)
	722	+	13 of this Section;
	723	+	14 (D-23) An amount equal to the credit allowable to
	724	+	15 the taxpayer under Section 218(a) of this Act,
	725	+	16 determined without regard to Section 218(c) of this
	726	+	17 Act;
	727	+	18 (D-24) For taxable years ending on or after
	728	+	19 December 31, 2017, an amount equal to the deduction
	729	+	20 allowed under Section 199 of the Internal Revenue Code
	730	+	21 for the taxable year;
	731	+	22 (D-25) In the case of a resident, an amount equal
	732	+	23 to the amount of tax for which a credit is allowed
	733	+	24 pursuant to Section 201(p)(7) of this Act;
	734	+	25 and by deducting from the total so obtained the sum of the
	735	+	26 following amounts:
	736	+
	737	+
	738	+
	739	+
	740	+
	741	+	HB5290 Enrolled - 21 - LRB103 39138 CES 69280 b
	742	+
	743	+
	744	+	HB5290 Enrolled- 22 -LRB103 39138 CES 69280 b HB5290 Enrolled - 22 - LRB103 39138 CES 69280 b
	745	+	HB5290 Enrolled - 22 - LRB103 39138 CES 69280 b
	746	+	1 (E) For taxable years ending before December 31,
	747	+	2 2001, any amount included in such total in respect of
	748	+	3 any compensation (including but not limited to any
	749	+	4 compensation paid or accrued to a serviceman while a
	750	+	5 prisoner of war or missing in action) paid to a
	751	+	6 resident by reason of being on active duty in the Armed
	752	+	7 Forces of the United States and in respect of any
	753	+	8 compensation paid or accrued to a resident who as a
	754	+	9 governmental employee was a prisoner of war or missing
	755	+	10 in action, and in respect of any compensation paid to a
	756	+	11 resident in 1971 or thereafter for annual training
	757	+	12 performed pursuant to Sections 502 and 503, Title 32,
	758	+	13 United States Code as a member of the Illinois
	759	+	14 National Guard or, beginning with taxable years ending
	760	+	15 on or after December 31, 2007, the National Guard of
	761	+	16 any other state. For taxable years ending on or after
	762	+	17 December 31, 2001, any amount included in such total
	763	+	18 in respect of any compensation (including but not
	764	+	19 limited to any compensation paid or accrued to a
	765	+	20 serviceman while a prisoner of war or missing in
	766	+	21 action) paid to a resident by reason of being a member
	767	+	22 of any component of the Armed Forces of the United
	768	+	23 States and in respect of any compensation paid or
	769	+	24 accrued to a resident who as a governmental employee
	770	+	25 was a prisoner of war or missing in action, and in
	771	+	26 respect of any compensation paid to a resident in 2001
	772	+
	773	+
	774	+
	775	+
	776	+
	777	+	HB5290 Enrolled - 22 - LRB103 39138 CES 69280 b
	778	+
	779	+
	780	+	HB5290 Enrolled- 23 -LRB103 39138 CES 69280 b HB5290 Enrolled - 23 - LRB103 39138 CES 69280 b
	781	+	HB5290 Enrolled - 23 - LRB103 39138 CES 69280 b
	782	+	1 or thereafter by reason of being a member of the
	783	+	2 Illinois National Guard or, beginning with taxable
	784	+	3 years ending on or after December 31, 2007, the
	785	+	4 National Guard of any other state. The provisions of
	786	+	5 this subparagraph (E) are exempt from the provisions
	787	+	6 of Section 250;
	788	+	7 (F) An amount equal to all amounts included in
	789	+	8 such total pursuant to the provisions of Sections
	790	+	9 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
	791	+	10 408 of the Internal Revenue Code, or included in such
	792	+	11 total as distributions under the provisions of any
	793	+	12 retirement or disability plan for employees of any
	794	+	13 governmental agency or unit, or retirement payments to
	795	+	14 retired partners, which payments are excluded in
	796	+	15 computing net earnings from self employment by Section
	797	+	16 1402 of the Internal Revenue Code and regulations
	798	+	17 adopted pursuant thereto;
	799	+	18 (G) The valuation limitation amount;
	800	+	19 (H) An amount equal to the amount of any tax
	801	+	20 imposed by this Act which was refunded to the taxpayer
	802	+	21 and included in such total for the taxable year;
	803	+	22 (I) An amount equal to all amounts included in
	804	+	23 such total pursuant to the provisions of Section 111
	805	+	24 of the Internal Revenue Code as a recovery of items
	806	+	25 previously deducted from adjusted gross income in the
	807	+	26 computation of taxable income;
	808	+
	809	+
	810	+
	811	+
	812	+
	813	+	HB5290 Enrolled - 23 - LRB103 39138 CES 69280 b
	814	+
	815	+
	816	+	HB5290 Enrolled- 24 -LRB103 39138 CES 69280 b HB5290 Enrolled - 24 - LRB103 39138 CES 69280 b
	817	+	HB5290 Enrolled - 24 - LRB103 39138 CES 69280 b
	818	+	1 (J) An amount equal to those dividends included in
	819	+	2 such total which were paid by a corporation which
	820	+	3 conducts business operations in a River Edge
	821	+	4 Redevelopment Zone or zones created under the River
	822	+	5 Edge Redevelopment Zone Act, and conducts
	823	+	6 substantially all of its operations in a River Edge
	824	+	7 Redevelopment Zone or zones. This subparagraph (J) is
	825	+	8 exempt from the provisions of Section 250;
	826	+	9 (K) An amount equal to those dividends included in
	827	+	10 such total that were paid by a corporation that
	828	+	11 conducts business operations in a federally designated
	829	+	12 Foreign Trade Zone or Sub-Zone and that is designated
	830	+	13 a High Impact Business located in Illinois; provided
	831	+	14 that dividends eligible for the deduction provided in
	832	+	15 subparagraph (J) of paragraph (2) of this subsection
	833	+	16 shall not be eligible for the deduction provided under
	834	+	17 this subparagraph (K);
	835	+	18 (L) For taxable years ending after December 31,
	836	+	19 1983, an amount equal to all social security benefits
	837	+	20 and railroad retirement benefits included in such
	838	+	21 total pursuant to Sections 72(r) and 86 of the
	839	+	22 Internal Revenue Code;
	840	+	23 (M) With the exception of any amounts subtracted
	841	+	24 under subparagraph (N), an amount equal to the sum of
	842	+	25 all amounts disallowed as deductions by (i) Sections
	843	+	26 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
	844	+
	845	+
	846	+
	847	+
	848	+
	849	+	HB5290 Enrolled - 24 - LRB103 39138 CES 69280 b
	850	+
	851	+
	852	+	HB5290 Enrolled- 25 -LRB103 39138 CES 69280 b HB5290 Enrolled - 25 - LRB103 39138 CES 69280 b
	853	+	HB5290 Enrolled - 25 - LRB103 39138 CES 69280 b
	854	+	1 and all amounts of expenses allocable to interest and
	855	+	2 disallowed as deductions by Section 265(a)(1) of the
	856	+	3 Internal Revenue Code; and (ii) for taxable years
	857	+	4 ending on or after August 13, 1999, Sections
	858	+	5 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
	859	+	6 Internal Revenue Code, plus, for taxable years ending
	860	+	7 on or after December 31, 2011, Section 45G(e)(3) of
	861	+	8 the Internal Revenue Code and, for taxable years
	862	+	9 ending on or after December 31, 2008, any amount
	863	+	10 included in gross income under Section 87 of the
	864	+	11 Internal Revenue Code; the provisions of this
	865	+	12 subparagraph are exempt from the provisions of Section
	866	+	13 250;
	867	+	14 (N) An amount equal to all amounts included in
	868	+	15 such total which are exempt from taxation by this
	869	+	16 State either by reason of its statutes or Constitution
	870	+	17 or by reason of the Constitution, treaties or statutes
	871	+	18 of the United States; provided that, in the case of any
	872	+	19 statute of this State that exempts income derived from
	873	+	20 bonds or other obligations from the tax imposed under
	874	+	21 this Act, the amount exempted shall be the interest
	875	+	22 net of bond premium amortization;
	876	+	23 (O) An amount equal to any contribution made to a
	877	+	24 job training project established pursuant to the Tax
	878	+	25 Increment Allocation Redevelopment Act;
	879	+	26 (P) An amount equal to the amount of the deduction
	880	+
	881	+
	882	+
	883	+
	884	+
	885	+	HB5290 Enrolled - 25 - LRB103 39138 CES 69280 b
	886	+
	887	+
	888	+	HB5290 Enrolled- 26 -LRB103 39138 CES 69280 b HB5290 Enrolled - 26 - LRB103 39138 CES 69280 b
	889	+	HB5290 Enrolled - 26 - LRB103 39138 CES 69280 b
	890	+	1 used to compute the federal income tax credit for
	891	+	2 restoration of substantial amounts held under claim of
	892	+	3 right for the taxable year pursuant to Section 1341 of
	893	+	4 the Internal Revenue Code or of any itemized deduction
	894	+	5 taken from adjusted gross income in the computation of
	895	+	6 taxable income for restoration of substantial amounts
	896	+	7 held under claim of right for the taxable year;
	897	+	8 (Q) An amount equal to any amounts included in
	898	+	9 such total, received by the taxpayer as an
	899	+	10 acceleration in the payment of life, endowment or
	900	+	11 annuity benefits in advance of the time they would
	901	+	12 otherwise be payable as an indemnity for a terminal
	902	+	13 illness;
	903	+	14 (R) An amount equal to the amount of any federal or
	904	+	15 State bonus paid to veterans of the Persian Gulf War;
	905	+	16 (S) An amount, to the extent included in adjusted
	906	+	17 gross income, equal to the amount of a contribution
	907	+	18 made in the taxable year on behalf of the taxpayer to a
	908	+	19 medical care savings account established under the
	909	+	20 Medical Care Savings Account Act or the Medical Care
	910	+	21 Savings Account Act of 2000 to the extent the
	911	+	22 contribution is accepted by the account administrator
	912	+	23 as provided in that Act;
	913	+	24 (T) An amount, to the extent included in adjusted
	914	+	25 gross income, equal to the amount of interest earned
	915	+	26 in the taxable year on a medical care savings account
	916	+
	917	+
	918	+
	919	+
	920	+
	921	+	HB5290 Enrolled - 26 - LRB103 39138 CES 69280 b
	922	+
	923	+
	924	+	HB5290 Enrolled- 27 -LRB103 39138 CES 69280 b HB5290 Enrolled - 27 - LRB103 39138 CES 69280 b
	925	+	HB5290 Enrolled - 27 - LRB103 39138 CES 69280 b
	926	+	1 established under the Medical Care Savings Account Act
	927	+	2 or the Medical Care Savings Account Act of 2000 on
	928	+	3 behalf of the taxpayer, other than interest added
	929	+	4 pursuant to item (D-5) of this paragraph (2);
	930	+	5 (U) For one taxable year beginning on or after
	931	+	6 January 1, 1994, an amount equal to the total amount of
	932	+	7 tax imposed and paid under subsections (a) and (b) of
	933	+	8 Section 201 of this Act on grant amounts received by
	934	+	9 the taxpayer under the Nursing Home Grant Assistance
	935	+	10 Act during the taxpayer's taxable years 1992 and 1993;
	936	+	11 (V) Beginning with tax years ending on or after
	937	+	12 December 31, 1995 and ending with tax years ending on
	938	+	13 or before December 31, 2004, an amount equal to the
	939	+	14 amount paid by a taxpayer who is a self-employed
	940	+	15 taxpayer, a partner of a partnership, or a shareholder
	941	+	16 in a Subchapter S corporation for health insurance or
	942	+	17 long-term care insurance for that taxpayer or that
	943	+	18 taxpayer's spouse or dependents, to the extent that
	944	+	19 the amount paid for that health insurance or long-term
	945	+	20 care insurance may be deducted under Section 213 of
	946	+	21 the Internal Revenue Code, has not been deducted on
	947	+	22 the federal income tax return of the taxpayer, and
	948	+	23 does not exceed the taxable income attributable to
	949	+	24 that taxpayer's income, self-employment income, or
	950	+	25 Subchapter S corporation income; except that no
	951	+	26 deduction shall be allowed under this item (V) if the
	952	+
	953	+
	954	+
	955	+
	956	+
	957	+	HB5290 Enrolled - 27 - LRB103 39138 CES 69280 b
	958	+
	959	+
	960	+	HB5290 Enrolled- 28 -LRB103 39138 CES 69280 b HB5290 Enrolled - 28 - LRB103 39138 CES 69280 b
	961	+	HB5290 Enrolled - 28 - LRB103 39138 CES 69280 b
	962	+	1 taxpayer is eligible to participate in any health
	963	+	2 insurance or long-term care insurance plan of an
	964	+	3 employer of the taxpayer or the taxpayer's spouse. The
	965	+	4 amount of the health insurance and long-term care
	966	+	5 insurance subtracted under this item (V) shall be
	967	+	6 determined by multiplying total health insurance and
	968	+	7 long-term care insurance premiums paid by the taxpayer
	969	+	8 times a number that represents the fractional
	970	+	9 percentage of eligible medical expenses under Section
	971	+	10 213 of the Internal Revenue Code of 1986 not actually
	972	+	11 deducted on the taxpayer's federal income tax return;
	973	+	12 (W) For taxable years beginning on or after
	974	+	13 January 1, 1998, all amounts included in the
	975	+	14 taxpayer's federal gross income in the taxable year
	976	+	15 from amounts converted from a regular IRA to a Roth
	977	+	16 IRA. This paragraph is exempt from the provisions of
	978	+	17 Section 250;
	979	+	18 (X) For taxable year 1999 and thereafter, an
	980	+	19 amount equal to the amount of any (i) distributions,
	981	+	20 to the extent includible in gross income for federal
	982	+	21 income tax purposes, made to the taxpayer because of
	983	+	22 his or her status as a victim of persecution for racial
	984	+	23 or religious reasons by Nazi Germany or any other Axis
	985	+	24 regime or as an heir of the victim and (ii) items of
	986	+	25 income, to the extent includible in gross income for
	987	+	26 federal income tax purposes, attributable to, derived
	988	+
	989	+
	990	+
	991	+
	992	+
	993	+	HB5290 Enrolled - 28 - LRB103 39138 CES 69280 b
	994	+
	995	+
	996	+	HB5290 Enrolled- 29 -LRB103 39138 CES 69280 b HB5290 Enrolled - 29 - LRB103 39138 CES 69280 b
	997	+	HB5290 Enrolled - 29 - LRB103 39138 CES 69280 b
	998	+	1 from or in any way related to assets stolen from,
	999	+	2 hidden from, or otherwise lost to a victim of
	1000	+	3 persecution for racial or religious reasons by Nazi
	1001	+	4 Germany or any other Axis regime immediately prior to,
	1002	+	5 during, and immediately after World War II, including,
	1003	+	6 but not limited to, interest on the proceeds
	1004	+	7 receivable as insurance under policies issued to a
	1005	+	8 victim of persecution for racial or religious reasons
	1006	+	9 by Nazi Germany or any other Axis regime by European
	1007	+	10 insurance companies immediately prior to and during
	1008	+	11 World War II; provided, however, this subtraction from
	1009	+	12 federal adjusted gross income does not apply to assets
	1010	+	13 acquired with such assets or with the proceeds from
	1011	+	14 the sale of such assets; provided, further, this
	1012	+	15 paragraph shall only apply to a taxpayer who was the
	1013	+	16 first recipient of such assets after their recovery
	1014	+	17 and who is a victim of persecution for racial or
	1015	+	18 religious reasons by Nazi Germany or any other Axis
	1016	+	19 regime or as an heir of the victim. The amount of and
	1017	+	20 the eligibility for any public assistance, benefit, or
	1018	+	21 similar entitlement is not affected by the inclusion
	1019	+	22 of items (i) and (ii) of this paragraph in gross income
	1020	+	23 for federal income tax purposes. This paragraph is
	1021	+	24 exempt from the provisions of Section 250;
	1022	+	25 (Y) For taxable years beginning on or after
	1023	+	26 January 1, 2002 and ending on or before December 31,
	1024	+
	1025	+
	1026	+
	1027	+
	1028	+
	1029	+	HB5290 Enrolled - 29 - LRB103 39138 CES 69280 b
	1030	+
	1031	+
	1032	+	HB5290 Enrolled- 30 -LRB103 39138 CES 69280 b HB5290 Enrolled - 30 - LRB103 39138 CES 69280 b
	1033	+	HB5290 Enrolled - 30 - LRB103 39138 CES 69280 b
	1034	+	1 2004, moneys contributed in the taxable year to a
	1035	+	2 College Savings Pool account under Section 16.5 of the
	1036	+	3 State Treasurer Act, except that amounts excluded from
	1037	+	4 gross income under Section 529(c)(3)(C)(i) of the
	1038	+	5 Internal Revenue Code shall not be considered moneys
	1039	+	6 contributed under this subparagraph (Y). For taxable
	1040	+	7 years beginning on or after January 1, 2005, a maximum
	1041	+	8 of $10,000 contributed in the taxable year to (i) a
	1042	+	9 College Savings Pool account under Section 16.5 of the
	1043	+	10 State Treasurer Act or (ii) the Illinois Prepaid
	1044	+	11 Tuition Trust Fund, except that amounts excluded from
	1045	+	12 gross income under Section 529(c)(3)(C)(i) of the
	1046	+	13 Internal Revenue Code shall not be considered moneys
	1047	+	14 contributed under this subparagraph (Y). For purposes
	1048	+	15 of this subparagraph, contributions made by an
	1049	+	16 employer on behalf of an employee, or matching
	1050	+	17 contributions made by an employee, shall be treated as
	1051	+	18 made by the employee. This subparagraph (Y) is exempt
	1052	+	19 from the provisions of Section 250;
	1053	+	20 (Z) For taxable years 2001 and thereafter, for the
	1054	+	21 taxable year in which the bonus depreciation deduction
	1055	+	22 is taken on the taxpayer's federal income tax return
	1056	+	23 under subsection (k) of Section 168 of the Internal
	1057	+	24 Revenue Code and for each applicable taxable year
	1058	+	25 thereafter, an amount equal to "x", where:
	1059	+	26 (1) "y" equals the amount of the depreciation
	1060	+
	1061	+
	1062	+
	1063	+
	1064	+
	1065	+	HB5290 Enrolled - 30 - LRB103 39138 CES 69280 b
	1066	+
	1067	+
	1068	+	HB5290 Enrolled- 31 -LRB103 39138 CES 69280 b HB5290 Enrolled - 31 - LRB103 39138 CES 69280 b
	1069	+	HB5290 Enrolled - 31 - LRB103 39138 CES 69280 b
	1070	+	1 deduction taken for the taxable year on the
	1071	+	2 taxpayer's federal income tax return on property
	1072	+	3 for which the bonus depreciation deduction was
	1073	+	4 taken in any year under subsection (k) of Section
	1074	+	5 168 of the Internal Revenue Code, but not
	1075	+	6 including the bonus depreciation deduction;
	1076	+	7 (2) for taxable years ending on or before
	1077	+	8 December 31, 2005, "x" equals "y" multiplied by 30
	1078	+	9 and then divided by 70 (or "y" multiplied by
	1079	+	10 0.429); and
	1080	+	11 (3) for taxable years ending after December
	1081	+	12 31, 2005:
	1082	+	13 (i) for property on which a bonus
	1083	+	14 depreciation deduction of 30% of the adjusted
	1084	+	15 basis was taken, "x" equals "y" multiplied by
	1085	+	16 30 and then divided by 70 (or "y" multiplied
	1086	+	17 by 0.429);
	1087	+	18 (ii) for property on which a bonus
	1088	+	19 depreciation deduction of 50% of the adjusted
	1089	+	20 basis was taken, "x" equals "y" multiplied by
	1090	+	21 1.0;
	1091	+	22 (iii) for property on which a bonus
	1092	+	23 depreciation deduction of 100% of the adjusted
	1093	+	24 basis was taken in a taxable year ending on or
	1094	+	25 after December 31, 2021, "x" equals the
	1095	+	26 depreciation deduction that would be allowed
	1096	+
	1097	+
	1098	+
	1099	+
	1100	+
	1101	+	HB5290 Enrolled - 31 - LRB103 39138 CES 69280 b
	1102	+
	1103	+
	1104	+	HB5290 Enrolled- 32 -LRB103 39138 CES 69280 b HB5290 Enrolled - 32 - LRB103 39138 CES 69280 b
	1105	+	HB5290 Enrolled - 32 - LRB103 39138 CES 69280 b
	1106	+	1 on that property if the taxpayer had made the
	1107	+	2 election under Section 168(k)(7) of the
	1108	+	3 Internal Revenue Code to not claim bonus
	1109	+	4 depreciation on that property; and
	1110	+	5 (iv) for property on which a bonus
	1111	+	6 depreciation deduction of a percentage other
	1112	+	7 than 30%, 50% or 100% of the adjusted basis
	1113	+	8 was taken in a taxable year ending on or after
	1114	+	9 December 31, 2021, "x" equals "y" multiplied
	1115	+	10 by 100 times the percentage bonus depreciation
	1116	+	11 on the property (that is, 100(bonus%)) and
	1117	+	12 then divided by 100 times 1 minus the
	1118	+	13 percentage bonus depreciation on the property
	1119	+	14 (that is, 100(1-bonus%)).
	1120	+	15 The aggregate amount deducted under this
	1121	+	16 subparagraph in all taxable years for any one piece of
	1122	+	17 property may not exceed the amount of the bonus
	1123	+	18 depreciation deduction taken on that property on the
	1124	+	19 taxpayer's federal income tax return under subsection
	1125	+	20 (k) of Section 168 of the Internal Revenue Code. This
	1126	+	21 subparagraph (Z) is exempt from the provisions of
	1127	+	22 Section 250;
	1128	+	23 (AA) If the taxpayer sells, transfers, abandons,
	1129	+	24 or otherwise disposes of property for which the
	1130	+	25 taxpayer was required in any taxable year to make an
	1131	+	26 addition modification under subparagraph (D-15), then
	1132	+
	1133	+
	1134	+
	1135	+
	1136	+
	1137	+	HB5290 Enrolled - 32 - LRB103 39138 CES 69280 b
	1138	+
	1139	+
	1140	+	HB5290 Enrolled- 33 -LRB103 39138 CES 69280 b HB5290 Enrolled - 33 - LRB103 39138 CES 69280 b
	1141	+	HB5290 Enrolled - 33 - LRB103 39138 CES 69280 b
	1142	+	1 an amount equal to that addition modification.
	1143	+	2 If the taxpayer continues to own property through
	1144	+	3 the last day of the last tax year for which a
	1145	+	4 subtraction is allowed with respect to that property
	1146	+	5 under subparagraph (Z) and for which the taxpayer was
	1147	+	6 required in any taxable year to make an addition
	1148	+	7 modification under subparagraph (D-15), then an amount
	1149	+	8 equal to that addition modification.
	1150	+	9 The taxpayer is allowed to take the deduction
	1151	+	10 under this subparagraph only once with respect to any
	1152	+	11 one piece of property.
	1153	+	12 This subparagraph (AA) is exempt from the
	1154	+	13 provisions of Section 250;
	1155	+	14 (BB) Any amount included in adjusted gross income,
	1156	+	15 other than salary, received by a driver in a
	1157	+	16 ridesharing arrangement using a motor vehicle;
	1158	+	17 (CC) The amount of (i) any interest income (net of
	1159	+	18 the deductions allocable thereto) taken into account
	1160	+	19 for the taxable year with respect to a transaction
	1161	+	20 with a taxpayer that is required to make an addition
	1162	+	21 modification with respect to such transaction under
	1163	+	22 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
	1164	+	23 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
	1165	+	24 the amount of that addition modification, and (ii) any
	1166	+	25 income from intangible property (net of the deductions
	1167	+	26 allocable thereto) taken into account for the taxable
	1168	+
	1169	+
	1170	+
	1171	+
	1172	+
	1173	+	HB5290 Enrolled - 33 - LRB103 39138 CES 69280 b
	1174	+
	1175	+
	1176	+	HB5290 Enrolled- 34 -LRB103 39138 CES 69280 b HB5290 Enrolled - 34 - LRB103 39138 CES 69280 b
	1177	+	HB5290 Enrolled - 34 - LRB103 39138 CES 69280 b
	1178	+	1 year with respect to a transaction with a taxpayer
	1179	+	2 that is required to make an addition modification with
	1180	+	3 respect to such transaction under Section
	1181	+	4 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
	1182	+	5 203(d)(2)(D-8), but not to exceed the amount of that
	1183	+	6 addition modification. This subparagraph (CC) is
	1184	+	7 exempt from the provisions of Section 250;
	1185	+	8 (DD) An amount equal to the interest income taken
	1186	+	9 into account for the taxable year (net of the
	1187	+	10 deductions allocable thereto) with respect to
	1188	+	11 transactions with (i) a foreign person who would be a
	1189	+	12 member of the taxpayer's unitary business group but
	1190	+	13 for the fact that the foreign person's business
	1191	+	14 activity outside the United States is 80% or more of
	1192	+	15 that person's total business activity and (ii) for
	1193	+	16 taxable years ending on or after December 31, 2008, to
	1194	+	17 a person who would be a member of the same unitary
	1195	+	18 business group but for the fact that the person is
	1196	+	19 prohibited under Section 1501(a)(27) from being
	1197	+	20 included in the unitary business group because he or
	1198	+	21 she is ordinarily required to apportion business
	1199	+	22 income under different subsections of Section 304, but
	1200	+	23 not to exceed the addition modification required to be
	1201	+	24 made for the same taxable year under Section
	1202	+	25 203(a)(2)(D-17) for interest paid, accrued, or
	1203	+	26 incurred, directly or indirectly, to the same person.
	1204	+
	1205	+
	1206	+
	1207	+
	1208	+
	1209	+	HB5290 Enrolled - 34 - LRB103 39138 CES 69280 b
	1210	+
	1211	+
	1212	+	HB5290 Enrolled- 35 -LRB103 39138 CES 69280 b HB5290 Enrolled - 35 - LRB103 39138 CES 69280 b
	1213	+	HB5290 Enrolled - 35 - LRB103 39138 CES 69280 b
	1214	+	1 This subparagraph (DD) is exempt from the provisions
	1215	+	2 of Section 250;
	1216	+	3 (EE) An amount equal to the income from intangible
	1217	+	4 property taken into account for the taxable year (net
	1218	+	5 of the deductions allocable thereto) with respect to
	1219	+	6 transactions with (i) a foreign person who would be a
	1220	+	7 member of the taxpayer's unitary business group but
	1221	+	8 for the fact that the foreign person's business
	1222	+	9 activity outside the United States is 80% or more of
	1223	+	10 that person's total business activity and (ii) for
	1224	+	11 taxable years ending on or after December 31, 2008, to
	1225	+	12 a person who would be a member of the same unitary
	1226	+	13 business group but for the fact that the person is
	1227	+	14 prohibited under Section 1501(a)(27) from being
	1228	+	15 included in the unitary business group because he or
	1229	+	16 she is ordinarily required to apportion business
	1230	+	17 income under different subsections of Section 304, but
	1231	+	18 not to exceed the addition modification required to be
	1232	+	19 made for the same taxable year under Section
	1233	+	20 203(a)(2)(D-18) for intangible expenses and costs
	1234	+	21 paid, accrued, or incurred, directly or indirectly, to
	1235	+	22 the same foreign person. This subparagraph (EE) is
	1236	+	23 exempt from the provisions of Section 250;
	1237	+	24 (FF) An amount equal to any amount awarded to the
	1238	+	25 taxpayer during the taxable year by the Court of
	1239	+	26 Claims under subsection (c) of Section 8 of the Court
	1240	+
	1241	+
	1242	+
	1243	+
	1244	+
	1245	+	HB5290 Enrolled - 35 - LRB103 39138 CES 69280 b
	1246	+
	1247	+
	1248	+	HB5290 Enrolled- 36 -LRB103 39138 CES 69280 b HB5290 Enrolled - 36 - LRB103 39138 CES 69280 b
	1249	+	HB5290 Enrolled - 36 - LRB103 39138 CES 69280 b
	1250	+	1 of Claims Act for time unjustly served in a State
	1251	+	2 prison. This subparagraph (FF) is exempt from the
	1252	+	3 provisions of Section 250;
	1253	+	4 (GG) For taxable years ending on or after December
	1254	+	5 31, 2011, in the case of a taxpayer who was required to
	1255	+	6 add back any insurance premiums under Section
	1256	+	7 203(a)(2)(D-19), such taxpayer may elect to subtract
	1257	+	8 that part of a reimbursement received from the
	1258	+	9 insurance company equal to the amount of the expense
	1259	+	10 or loss (including expenses incurred by the insurance
	1260	+	11 company) that would have been taken into account as a
	1261	+	12 deduction for federal income tax purposes if the
	1262	+	13 expense or loss had been uninsured. If a taxpayer
	1263	+	14 makes the election provided for by this subparagraph
	1264	+	15 (GG), the insurer to which the premiums were paid must
	1265	+	16 add back to income the amount subtracted by the
	1266	+	17 taxpayer pursuant to this subparagraph (GG). This
	1267	+	18 subparagraph (GG) is exempt from the provisions of
	1268	+	19 Section 250;
	1269	+	20 (HH) For taxable years beginning on or after
	1270	+	21 January 1, 2018 and prior to January 1, 2028, a maximum
	1271	+	22 of $10,000 contributed in the taxable year to a
	1272	+	23 qualified ABLE account under Section 16.6 of the State
	1273	+	24 Treasurer Act, except that amounts excluded from gross
	1274	+	25 income under Section 529(c)(3)(C)(i) or Section
	1275	+	26 529A(c)(1)(C) of the Internal Revenue Code shall not
	1276	+
	1277	+
	1278	+
	1279	+
	1280	+
	1281	+	HB5290 Enrolled - 36 - LRB103 39138 CES 69280 b
	1282	+
	1283	+
	1284	+	HB5290 Enrolled- 37 -LRB103 39138 CES 69280 b HB5290 Enrolled - 37 - LRB103 39138 CES 69280 b
	1285	+	HB5290 Enrolled - 37 - LRB103 39138 CES 69280 b
	1286	+	1 be considered moneys contributed under this
	1287	+	2 subparagraph (HH). For purposes of this subparagraph
	1288	+	3 (HH), contributions made by an employer on behalf of
	1289	+	4 an employee, or matching contributions made by an
	1290	+	5 employee, shall be treated as made by the employee;
	1291	+	6 (II) For taxable years that begin on or after
	1292	+	7 January 1, 2021 and begin before January 1, 2026, the
	1293	+	8 amount that is included in the taxpayer's federal
	1294	+	9 adjusted gross income pursuant to Section 61 of the
	1295	+	10 Internal Revenue Code as discharge of indebtedness
	1296	+	11 attributable to student loan forgiveness and that is
	1297	+	12 not excluded from the taxpayer's federal adjusted
	1298	+	13 gross income pursuant to paragraph (5) of subsection
	1299	+	14 (f) of Section 108 of the Internal Revenue Code; and
	1300	+	15 (JJ) For taxable years beginning on or after
	1301	+	16 January 1, 2023, for any cannabis establishment
	1302	+	17 operating in this State and licensed under the
	1303	+	18 Cannabis Regulation and Tax Act or any cannabis
	1304	+	19 cultivation center or medical cannabis dispensing
	1305	+	20 organization operating in this State and licensed
	1306	+	21 under the Compassionate Use of Medical Cannabis
	1307	+	22 Program Act, an amount equal to the deductions that
	1308	+	23 were disallowed under Section 280E of the Internal
	1309	+	24 Revenue Code for the taxable year and that would not be
	1310	+	25 added back under this subsection. The provisions of
	1311	+	26 this subparagraph (JJ) are exempt from the provisions
	1312	+
	1313	+
	1314	+
	1315	+
	1316	+
	1317	+	HB5290 Enrolled - 37 - LRB103 39138 CES 69280 b
	1318	+
	1319	+
	1320	+	HB5290 Enrolled- 38 -LRB103 39138 CES 69280 b HB5290 Enrolled - 38 - LRB103 39138 CES 69280 b
	1321	+	HB5290 Enrolled - 38 - LRB103 39138 CES 69280 b
	1322	+	1 of Section 250; and .
	1323	+	2 (KK) (JJ) To the extent includible in gross income
	1324	+	3 for federal income tax purposes, any amount awarded or
	1325	+	4 paid to the taxpayer as a result of a judgment or
	1326	+	5 settlement for fertility fraud as provided in Section
	1327	+	6 15 of the Illinois Fertility Fraud Act, donor
	1328	+	7 fertility fraud as provided in Section 20 of the
	1329	+	8 Illinois Fertility Fraud Act, or similar action in
	1330	+	9 another state.
	1331	+	10 (LL) For taxable years beginning on or after
	1332	+	11 January 1, 2025, if the taxpayer is an eligible
	1333	+	12 resident as defined in the Medical Debt Relief Act, an
	1334	+	13 amount equal to the amount included in the taxpayer's
	1335	+	14 federal adjusted gross income that is attributable to
	1336	+	15 medical debt relief received by the taxpayer during
	1337	+	16 the taxable year from a nonprofit medical debt relief
	1338	+	17 coordinator under the provisions of the Medical Debt
	1339	+	18 Relief Act. This subparagraph (LL) is exempt from the
	1340	+	19 provisions of Section 250.
	1341	+	20 (b) Corporations.
	1342	+	21 (1) In general. In the case of a corporation, base
	1343	+	22 income means an amount equal to the taxpayer's taxable
	1344	+	23 income for the taxable year as modified by paragraph (2).
	1345	+	24 (2) Modifications. The taxable income referred to in
	1346	+	25 paragraph (1) shall be modified by adding thereto the sum
	1347	+
	1348	+
	1349	+
	1350	+
	1351	+
	1352	+	HB5290 Enrolled - 38 - LRB103 39138 CES 69280 b
	1353	+
	1354	+
	1355	+	HB5290 Enrolled- 39 -LRB103 39138 CES 69280 b HB5290 Enrolled - 39 - LRB103 39138 CES 69280 b
	1356	+	HB5290 Enrolled - 39 - LRB103 39138 CES 69280 b
	1357	+	1 of the following amounts:
	1358	+	2 (A) An amount equal to all amounts paid or accrued
	1359	+	3 to the taxpayer as interest and all distributions
	1360	+	4 received from regulated investment companies during
	1361	+	5 the taxable year to the extent excluded from gross
	1362	+	6 income in the computation of taxable income;
	1363	+	7 (B) An amount equal to the amount of tax imposed by
	1364	+	8 this Act to the extent deducted from gross income in
	1365	+	9 the computation of taxable income for the taxable
	1366	+	10 year;
	1367	+	11 (C) In the case of a regulated investment company,
	1368	+	12 an amount equal to the excess of (i) the net long-term
	1369	+	13 capital gain for the taxable year, over (ii) the
	1370	+	14 amount of the capital gain dividends designated as
	1371	+	15 such in accordance with Section 852(b)(3)(C) of the
	1372	+	16 Internal Revenue Code and any amount designated under
	1373	+	17 Section 852(b)(3)(D) of the Internal Revenue Code,
	1374	+	18 attributable to the taxable year (this amendatory Act
	1375	+	19 of 1995 (Public Act 89-89) is declarative of existing
	1376	+	20 law and is not a new enactment);
	1377	+	21 (D) The amount of any net operating loss deduction
	1378	+	22 taken in arriving at taxable income, other than a net
	1379	+	23 operating loss carried forward from a taxable year
	1380	+	24 ending prior to December 31, 1986;
	1381	+	25 (E) For taxable years in which a net operating
	1382	+	26 loss carryback or carryforward from a taxable year
	1383	+
	1384	+
	1385	+
	1386	+
	1387	+
	1388	+	HB5290 Enrolled - 39 - LRB103 39138 CES 69280 b
	1389	+
	1390	+
	1391	+	HB5290 Enrolled- 40 -LRB103 39138 CES 69280 b HB5290 Enrolled - 40 - LRB103 39138 CES 69280 b
	1392	+	HB5290 Enrolled - 40 - LRB103 39138 CES 69280 b
	1393	+	1 ending prior to December 31, 1986 is an element of
	1394	+	2 taxable income under paragraph (1) of subsection (e)
	1395	+	3 or subparagraph (E) of paragraph (2) of subsection
	1396	+	4 (e), the amount by which addition modifications other
	1397	+	5 than those provided by this subparagraph (E) exceeded
	1398	+	6 subtraction modifications in such earlier taxable
	1399	+	7 year, with the following limitations applied in the
	1400	+	8 order that they are listed:
	1401	+	9 (i) the addition modification relating to the
	1402	+	10 net operating loss carried back or forward to the
	1403	+	11 taxable year from any taxable year ending prior to
	1404	+	12 December 31, 1986 shall be reduced by the amount
	1405	+	13 of addition modification under this subparagraph
	1406	+	14 (E) which related to that net operating loss and
	1407	+	15 which was taken into account in calculating the
	1408	+	16 base income of an earlier taxable year, and
	1409	+	17 (ii) the addition modification relating to the
	1410	+	18 net operating loss carried back or forward to the
	1411	+	19 taxable year from any taxable year ending prior to
	1412	+	20 December 31, 1986 shall not exceed the amount of
	1413	+	21 such carryback or carryforward;
	1414	+	22 For taxable years in which there is a net
	1415	+	23 operating loss carryback or carryforward from more
	1416	+	24 than one other taxable year ending prior to December
	1417	+	25 31, 1986, the addition modification provided in this
	1418	+	26 subparagraph (E) shall be the sum of the amounts
	1419	+
	1420	+
	1421	+
	1422	+
	1423	+
	1424	+	HB5290 Enrolled - 40 - LRB103 39138 CES 69280 b
	1425	+
	1426	+
	1427	+	HB5290 Enrolled- 41 -LRB103 39138 CES 69280 b HB5290 Enrolled - 41 - LRB103 39138 CES 69280 b
	1428	+	HB5290 Enrolled - 41 - LRB103 39138 CES 69280 b
	1429	+	1 computed independently under the preceding provisions
	1430	+	2 of this subparagraph (E) for each such taxable year;
	1431	+	3 (E-5) For taxable years ending after December 31,
	1432	+	4 1997, an amount equal to any eligible remediation
	1433	+	5 costs that the corporation deducted in computing
	1434	+	6 adjusted gross income and for which the corporation
	1435	+	7 claims a credit under subsection (l) of Section 201;
	1436	+	8 (E-10) For taxable years 2001 and thereafter, an
	1437	+	9 amount equal to the bonus depreciation deduction taken
	1438	+	10 on the taxpayer's federal income tax return for the
	1439	+	11 taxable year under subsection (k) of Section 168 of
	1440	+	12 the Internal Revenue Code;
	1441	+	13 (E-11) If the taxpayer sells, transfers, abandons,
	1442	+	14 or otherwise disposes of property for which the
	1443	+	15 taxpayer was required in any taxable year to make an
	1444	+	16 addition modification under subparagraph (E-10), then
	1445	+	17 an amount equal to the aggregate amount of the
	1446	+	18 deductions taken in all taxable years under
	1447	+	19 subparagraph (T) with respect to that property.
	1448	+	20 If the taxpayer continues to own property through
	1449	+	21 the last day of the last tax year for which a
	1450	+	22 subtraction is allowed with respect to that property
	1451	+	23 under subparagraph (T) and for which the taxpayer was
	1452	+	24 allowed in any taxable year to make a subtraction
	1453	+	25 modification under subparagraph (T), then an amount
	1454	+	26 equal to that subtraction modification.
	1455	+
	1456	+
	1457	+
	1458	+
	1459	+
	1460	+	HB5290 Enrolled - 41 - LRB103 39138 CES 69280 b
	1461	+
	1462	+
	1463	+	HB5290 Enrolled- 42 -LRB103 39138 CES 69280 b HB5290 Enrolled - 42 - LRB103 39138 CES 69280 b
	1464	+	HB5290 Enrolled - 42 - LRB103 39138 CES 69280 b
	1465	+	1 The taxpayer is required to make the addition
	1466	+	2 modification under this subparagraph only once with
	1467	+	3 respect to any one piece of property;
	1468	+	4 (E-12) An amount equal to the amount otherwise
	1469	+	5 allowed as a deduction in computing base income for
	1470	+	6 interest paid, accrued, or incurred, directly or
	1471	+	7 indirectly, (i) for taxable years ending on or after
	1472	+	8 December 31, 2004, to a foreign person who would be a
	1473	+	9 member of the same unitary business group but for the
	1474	+	10 fact the foreign person's business activity outside
	1475	+	11 the United States is 80% or more of the foreign
	1476	+	12 person's total business activity and (ii) for taxable
	1477	+	13 years ending on or after December 31, 2008, to a person
	1478	+	14 who would be a member of the same unitary business
	1479	+	15 group but for the fact that the person is prohibited
	1480	+	16 under Section 1501(a)(27) from being included in the
	1481	+	17 unitary business group because he or she is ordinarily
	1482	+	18 required to apportion business income under different
	1483	+	19 subsections of Section 304. The addition modification
	1484	+	20 required by this subparagraph shall be reduced to the
	1485	+	21 extent that dividends were included in base income of
	1486	+	22 the unitary group for the same taxable year and
	1487	+	23 received by the taxpayer or by a member of the
	1488	+	24 taxpayer's unitary business group (including amounts
	1489	+	25 included in gross income pursuant to Sections 951
	1490	+	26 through 964 of the Internal Revenue Code and amounts
	1491	+
	1492	+
	1493	+
	1494	+
	1495	+
	1496	+	HB5290 Enrolled - 42 - LRB103 39138 CES 69280 b
	1497	+
	1498	+
	1499	+	HB5290 Enrolled- 43 -LRB103 39138 CES 69280 b HB5290 Enrolled - 43 - LRB103 39138 CES 69280 b
	1500	+	HB5290 Enrolled - 43 - LRB103 39138 CES 69280 b
	1501	+	1 included in gross income under Section 78 of the
	1502	+	2 Internal Revenue Code) with respect to the stock of
	1503	+	3 the same person to whom the interest was paid,
	1504	+	4 accrued, or incurred.
	1505	+	5 This paragraph shall not apply to the following:
	1506	+	6 (i) an item of interest paid, accrued, or
	1507	+	7 incurred, directly or indirectly, to a person who
	1508	+	8 is subject in a foreign country or state, other
	1509	+	9 than a state which requires mandatory unitary
	1510	+	10 reporting, to a tax on or measured by net income
	1511	+	11 with respect to such interest; or
	1512	+	12 (ii) an item of interest paid, accrued, or
	1513	+	13 incurred, directly or indirectly, to a person if
	1514	+	14 the taxpayer can establish, based on a
	1515	+	15 preponderance of the evidence, both of the
	1516	+	16 following:
	1517	+	17 (a) the person, during the same taxable
	1518	+	18 year, paid, accrued, or incurred, the interest
	1519	+	19 to a person that is not a related member, and
	1520	+	20 (b) the transaction giving rise to the
	1521	+	21 interest expense between the taxpayer and the
	1522	+	22 person did not have as a principal purpose the
	1523	+	23 avoidance of Illinois income tax, and is paid
	1524	+	24 pursuant to a contract or agreement that
	1525	+	25 reflects an arm's-length interest rate and
	1526	+	26 terms; or
	1527	+
	1528	+
	1529	+
	1530	+
	1531	+
	1532	+	HB5290 Enrolled - 43 - LRB103 39138 CES 69280 b
	1533	+
	1534	+
	1535	+	HB5290 Enrolled- 44 -LRB103 39138 CES 69280 b HB5290 Enrolled - 44 - LRB103 39138 CES 69280 b
	1536	+	HB5290 Enrolled - 44 - LRB103 39138 CES 69280 b
	1537	+	1 (iii) the taxpayer can establish, based on
	1538	+	2 clear and convincing evidence, that the interest
	1539	+	3 paid, accrued, or incurred relates to a contract
	1540	+	4 or agreement entered into at arm's-length rates
	1541	+	5 and terms and the principal purpose for the
	1542	+	6 payment is not federal or Illinois tax avoidance;
	1543	+	7 or
	1544	+	8 (iv) an item of interest paid, accrued, or
	1545	+	9 incurred, directly or indirectly, to a person if
	1546	+	10 the taxpayer establishes by clear and convincing
	1547	+	11 evidence that the adjustments are unreasonable; or
	1548	+	12 if the taxpayer and the Director agree in writing
	1549	+	13 to the application or use of an alternative method
	1550	+	14 of apportionment under Section 304(f).
	1551	+	15 Nothing in this subsection shall preclude the
	1552	+	16 Director from making any other adjustment
	1553	+	17 otherwise allowed under Section 404 of this Act
	1554	+	18 for any tax year beginning after the effective
	1555	+	19 date of this amendment provided such adjustment is
	1556	+	20 made pursuant to regulation adopted by the
	1557	+	21 Department and such regulations provide methods
	1558	+	22 and standards by which the Department will utilize
	1559	+	23 its authority under Section 404 of this Act;
	1560	+	24 (E-13) An amount equal to the amount of intangible
	1561	+	25 expenses and costs otherwise allowed as a deduction in
	1562	+	26 computing base income, and that were paid, accrued, or
	1563	+
	1564	+
	1565	+
	1566	+
	1567	+
	1568	+	HB5290 Enrolled - 44 - LRB103 39138 CES 69280 b
	1569	+
	1570	+
	1571	+	HB5290 Enrolled- 45 -LRB103 39138 CES 69280 b HB5290 Enrolled - 45 - LRB103 39138 CES 69280 b
	1572	+	HB5290 Enrolled - 45 - LRB103 39138 CES 69280 b
	1573	+	1 incurred, directly or indirectly, (i) for taxable
	1574	+	2 years ending on or after December 31, 2004, to a
	1575	+	3 foreign person who would be a member of the same
	1576	+	4 unitary business group but for the fact that the
	1577	+	5 foreign person's business activity outside the United
	1578	+	6 States is 80% or more of that person's total business
	1579	+	7 activity and (ii) for taxable years ending on or after
	1580	+	8 December 31, 2008, to a person who would be a member of
	1581	+	9 the same unitary business group but for the fact that
	1582	+	10 the person is prohibited under Section 1501(a)(27)
	1583	+	11 from being included in the unitary business group
	1584	+	12 because he or she is ordinarily required to apportion
	1585	+	13 business income under different subsections of Section
	1586	+	14 304. The addition modification required by this
	1587	+	15 subparagraph shall be reduced to the extent that
	1588	+	16 dividends were included in base income of the unitary
	1589	+	17 group for the same taxable year and received by the
	1590	+	18 taxpayer or by a member of the taxpayer's unitary
	1591	+	19 business group (including amounts included in gross
	1592	+	20 income pursuant to Sections 951 through 964 of the
	1593	+	21 Internal Revenue Code and amounts included in gross
	1594	+	22 income under Section 78 of the Internal Revenue Code)
	1595	+	23 with respect to the stock of the same person to whom
	1596	+	24 the intangible expenses and costs were directly or
	1597	+	25 indirectly paid, incurred, or accrued. The preceding
	1598	+	26 sentence shall not apply to the extent that the same
	1599	+
	1600	+
	1601	+
	1602	+
	1603	+
	1604	+	HB5290 Enrolled - 45 - LRB103 39138 CES 69280 b
	1605	+
	1606	+
	1607	+	HB5290 Enrolled- 46 -LRB103 39138 CES 69280 b HB5290 Enrolled - 46 - LRB103 39138 CES 69280 b
	1608	+	HB5290 Enrolled - 46 - LRB103 39138 CES 69280 b
	1609	+	1 dividends caused a reduction to the addition
	1610	+	2 modification required under Section 203(b)(2)(E-12) of
	1611	+	3 this Act. As used in this subparagraph, the term
	1612	+	4 "intangible expenses and costs" includes (1) expenses,
	1613	+	5 losses, and costs for, or related to, the direct or
	1614	+	6 indirect acquisition, use, maintenance or management,
	1615	+	7 ownership, sale, exchange, or any other disposition of
	1616	+	8 intangible property; (2) losses incurred, directly or
	1617	+	9 indirectly, from factoring transactions or discounting
	1618	+	10 transactions; (3) royalty, patent, technical, and
	1619	+	11 copyright fees; (4) licensing fees; and (5) other
	1620	+	12 similar expenses and costs. For purposes of this
	1621	+	13 subparagraph, "intangible property" includes patents,
	1622	+	14 patent applications, trade names, trademarks, service
	1623	+	15 marks, copyrights, mask works, trade secrets, and
	1624	+	16 similar types of intangible assets.
	1625	+	17 This paragraph shall not apply to the following:
	1626	+	18 (i) any item of intangible expenses or costs
	1627	+	19 paid, accrued, or incurred, directly or
	1628	+	20 indirectly, from a transaction with a person who
	1629	+	21 is subject in a foreign country or state, other
	1630	+	22 than a state which requires mandatory unitary
	1631	+	23 reporting, to a tax on or measured by net income
	1632	+	24 with respect to such item; or
	1633	+	25 (ii) any item of intangible expense or cost
	1634	+	26 paid, accrued, or incurred, directly or
	1635	+
	1636	+
	1637	+
	1638	+
	1639	+
	1640	+	HB5290 Enrolled - 46 - LRB103 39138 CES 69280 b
	1641	+
	1642	+
	1643	+	HB5290 Enrolled- 47 -LRB103 39138 CES 69280 b HB5290 Enrolled - 47 - LRB103 39138 CES 69280 b
	1644	+	HB5290 Enrolled - 47 - LRB103 39138 CES 69280 b
	1645	+	1 indirectly, if the taxpayer can establish, based
	1646	+	2 on a preponderance of the evidence, both of the
	1647	+	3 following:
	1648	+	4 (a) the person during the same taxable
	1649	+	5 year paid, accrued, or incurred, the
	1650	+	6 intangible expense or cost to a person that is
	1651	+	7 not a related member, and
	1652	+	8 (b) the transaction giving rise to the
	1653	+	9 intangible expense or cost between the
	1654	+	10 taxpayer and the person did not have as a
	1655	+	11 principal purpose the avoidance of Illinois
	1656	+	12 income tax, and is paid pursuant to a contract
	1657	+	13 or agreement that reflects arm's-length terms;
	1658	+	14 or
	1659	+	15 (iii) any item of intangible expense or cost
	1660	+	16 paid, accrued, or incurred, directly or
	1661	+	17 indirectly, from a transaction with a person if
	1662	+	18 the taxpayer establishes by clear and convincing
	1663	+	19 evidence, that the adjustments are unreasonable;
	1664	+	20 or if the taxpayer and the Director agree in
	1665	+	21 writing to the application or use of an
	1666	+	22 alternative method of apportionment under Section
	1667	+	23 304(f);
	1668	+	24 Nothing in this subsection shall preclude the
	1669	+	25 Director from making any other adjustment
	1670	+	26 otherwise allowed under Section 404 of this Act
	1671	+
	1672	+
	1673	+
	1674	+
	1675	+
	1676	+	HB5290 Enrolled - 47 - LRB103 39138 CES 69280 b
	1677	+
	1678	+
	1679	+	HB5290 Enrolled- 48 -LRB103 39138 CES 69280 b HB5290 Enrolled - 48 - LRB103 39138 CES 69280 b
	1680	+	HB5290 Enrolled - 48 - LRB103 39138 CES 69280 b
	1681	+	1 for any tax year beginning after the effective
	1682	+	2 date of this amendment provided such adjustment is
	1683	+	3 made pursuant to regulation adopted by the
	1684	+	4 Department and such regulations provide methods
	1685	+	5 and standards by which the Department will utilize
	1686	+	6 its authority under Section 404 of this Act;
	1687	+	7 (E-14) For taxable years ending on or after
	1688	+	8 December 31, 2008, an amount equal to the amount of
	1689	+	9 insurance premium expenses and costs otherwise allowed
	1690	+	10 as a deduction in computing base income, and that were
	1691	+	11 paid, accrued, or incurred, directly or indirectly, to
	1692	+	12 a person who would be a member of the same unitary
	1693	+	13 business group but for the fact that the person is
	1694	+	14 prohibited under Section 1501(a)(27) from being
	1695	+	15 included in the unitary business group because he or
	1696	+	16 she is ordinarily required to apportion business
	1697	+	17 income under different subsections of Section 304. The
	1698	+	18 addition modification required by this subparagraph
	1699	+	19 shall be reduced to the extent that dividends were
	1700	+	20 included in base income of the unitary group for the
	1701	+	21 same taxable year and received by the taxpayer or by a
	1702	+	22 member of the taxpayer's unitary business group
	1703	+	23 (including amounts included in gross income under
	1704	+	24 Sections 951 through 964 of the Internal Revenue Code
	1705	+	25 and amounts included in gross income under Section 78
	1706	+	26 of the Internal Revenue Code) with respect to the
	1707	+
	1708	+
	1709	+
	1710	+
	1711	+
	1712	+	HB5290 Enrolled - 48 - LRB103 39138 CES 69280 b
	1713	+
	1714	+
	1715	+	HB5290 Enrolled- 49 -LRB103 39138 CES 69280 b HB5290 Enrolled - 49 - LRB103 39138 CES 69280 b
	1716	+	HB5290 Enrolled - 49 - LRB103 39138 CES 69280 b
	1717	+	1 stock of the same person to whom the premiums and costs
	1718	+	2 were directly or indirectly paid, incurred, or
	1719	+	3 accrued. The preceding sentence does not apply to the
	1720	+	4 extent that the same dividends caused a reduction to
	1721	+	5 the addition modification required under Section
	1722	+	6 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
	1723	+	7 Act;
	1724	+	8 (E-15) For taxable years beginning after December
	1725	+	9 31, 2008, any deduction for dividends paid by a
	1726	+	10 captive real estate investment trust that is allowed
	1727	+	11 to a real estate investment trust under Section
	1728	+	12 857(b)(2)(B) of the Internal Revenue Code for
	1729	+	13 dividends paid;
	1730	+	14 (E-16) An amount equal to the credit allowable to
	1731	+	15 the taxpayer under Section 218(a) of this Act,
	1732	+	16 determined without regard to Section 218(c) of this
	1733	+	17 Act;
	1734	+	18 (E-17) For taxable years ending on or after
	1735	+	19 December 31, 2017, an amount equal to the deduction
	1736	+	20 allowed under Section 199 of the Internal Revenue Code
	1737	+	21 for the taxable year;
	1738	+	22 (E-18) for taxable years beginning after December
	1739	+	23 31, 2018, an amount equal to the deduction allowed
	1740	+	24 under Section 250(a)(1)(A) of the Internal Revenue
	1741	+	25 Code for the taxable year;
	1742	+	26 (E-19) for taxable years ending on or after June
	1743	+
	1744	+
	1745	+
	1746	+
	1747	+
	1748	+	HB5290 Enrolled - 49 - LRB103 39138 CES 69280 b
	1749	+
	1750	+
	1751	+	HB5290 Enrolled- 50 -LRB103 39138 CES 69280 b HB5290 Enrolled - 50 - LRB103 39138 CES 69280 b
	1752	+	HB5290 Enrolled - 50 - LRB103 39138 CES 69280 b
	1753	+	1 30, 2021, an amount equal to the deduction allowed
	1754	+	2 under Section 250(a)(1)(B)(i) of the Internal Revenue
	1755	+	3 Code for the taxable year;
	1756	+	4 (E-20) for taxable years ending on or after June
	1757	+	5 30, 2021, an amount equal to the deduction allowed
	1758	+	6 under Sections 243(e) and 245A(a) of the Internal
	1759	+	7 Revenue Code for the taxable year.
	1760	+	8 and by deducting from the total so obtained the sum of the
	1761	+	9 following amounts:
	1762	+	10 (F) An amount equal to the amount of any tax
	1763	+	11 imposed by this Act which was refunded to the taxpayer
	1764	+	12 and included in such total for the taxable year;
	1765	+	13 (G) An amount equal to any amount included in such
	1766	+	14 total under Section 78 of the Internal Revenue Code;
	1767	+	15 (H) In the case of a regulated investment company,
	1768	+	16 an amount equal to the amount of exempt interest
	1769	+	17 dividends as defined in subsection (b)(5) of Section
	1770	+	18 852 of the Internal Revenue Code, paid to shareholders
	1771	+	19 for the taxable year;
	1772	+	20 (I) With the exception of any amounts subtracted
	1773	+	21 under subparagraph (J), an amount equal to the sum of
	1774	+	22 all amounts disallowed as deductions by (i) Sections
	1775	+	23 171(a)(2) and 265(a)(2) and amounts disallowed as
	1776	+	24 interest expense by Section 291(a)(3) of the Internal
	1777	+	25 Revenue Code, and all amounts of expenses allocable to
	1778	+	26 interest and disallowed as deductions by Section
	1779	+
	1780	+
	1781	+
	1782	+
	1783	+
	1784	+	HB5290 Enrolled - 50 - LRB103 39138 CES 69280 b
	1785	+
	1786	+
	1787	+	HB5290 Enrolled- 51 -LRB103 39138 CES 69280 b HB5290 Enrolled - 51 - LRB103 39138 CES 69280 b
	1788	+	HB5290 Enrolled - 51 - LRB103 39138 CES 69280 b
	1789	+	1 265(a)(1) of the Internal Revenue Code; and (ii) for
	1790	+	2 taxable years ending on or after August 13, 1999,
	1791	+	3 Sections 171(a)(2), 265, 280C, 291(a)(3), and
	1792	+	4 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
	1793	+	5 for tax years ending on or after December 31, 2011,
	1794	+	6 amounts disallowed as deductions by Section 45G(e)(3)
	1795	+	7 of the Internal Revenue Code and, for taxable years
	1796	+	8 ending on or after December 31, 2008, any amount
	1797	+	9 included in gross income under Section 87 of the
	1798	+	10 Internal Revenue Code and the policyholders' share of
	1799	+	11 tax-exempt interest of a life insurance company under
	1800	+	12 Section 807(a)(2)(B) of the Internal Revenue Code (in
	1801	+	13 the case of a life insurance company with gross income
	1802	+	14 from a decrease in reserves for the tax year) or
	1803	+	15 Section 807(b)(1)(B) of the Internal Revenue Code (in
	1804	+	16 the case of a life insurance company allowed a
	1805	+	17 deduction for an increase in reserves for the tax
	1806	+	18 year); the provisions of this subparagraph are exempt
	1807	+	19 from the provisions of Section 250;
	1808	+	20 (J) An amount equal to all amounts included in
	1809	+	21 such total which are exempt from taxation by this
	1810	+	22 State either by reason of its statutes or Constitution
	1811	+	23 or by reason of the Constitution, treaties or statutes
	1812	+	24 of the United States; provided that, in the case of any
	1813	+	25 statute of this State that exempts income derived from
	1814	+	26 bonds or other obligations from the tax imposed under
	1815	+
	1816	+
	1817	+
	1818	+
	1819	+
	1820	+	HB5290 Enrolled - 51 - LRB103 39138 CES 69280 b
	1821	+
	1822	+
	1823	+	HB5290 Enrolled- 52 -LRB103 39138 CES 69280 b HB5290 Enrolled - 52 - LRB103 39138 CES 69280 b
	1824	+	HB5290 Enrolled - 52 - LRB103 39138 CES 69280 b
	1825	+	1 this Act, the amount exempted shall be the interest
	1826	+	2 net of bond premium amortization;
	1827	+	3 (K) An amount equal to those dividends included in
	1828	+	4 such total which were paid by a corporation which
	1829	+	5 conducts business operations in a River Edge
	1830	+	6 Redevelopment Zone or zones created under the River
	1831	+	7 Edge Redevelopment Zone Act and conducts substantially
	1832	+	8 all of its operations in a River Edge Redevelopment
	1833	+	9 Zone or zones. This subparagraph (K) is exempt from
	1834	+	10 the provisions of Section 250;
	1835	+	11 (L) An amount equal to those dividends included in
	1836	+	12 such total that were paid by a corporation that
	1837	+	13 conducts business operations in a federally designated
	1838	+	14 Foreign Trade Zone or Sub-Zone and that is designated
	1839	+	15 a High Impact Business located in Illinois; provided
	1840	+	16 that dividends eligible for the deduction provided in
	1841	+	17 subparagraph (K) of paragraph 2 of this subsection
	1842	+	18 shall not be eligible for the deduction provided under
	1843	+	19 this subparagraph (L);
	1844	+	20 (M) For any taxpayer that is a financial
	1845	+	21 organization within the meaning of Section 304(c) of
	1846	+	22 this Act, an amount included in such total as interest
	1847	+	23 income from a loan or loans made by such taxpayer to a
	1848	+	24 borrower, to the extent that such a loan is secured by
	1849	+	25 property which is eligible for the River Edge
	1850	+	26 Redevelopment Zone Investment Credit. To determine the
	1851	+
	1852	+
	1853	+
	1854	+
	1855	+
	1856	+	HB5290 Enrolled - 52 - LRB103 39138 CES 69280 b
	1857	+
	1858	+
	1859	+	HB5290 Enrolled- 53 -LRB103 39138 CES 69280 b HB5290 Enrolled - 53 - LRB103 39138 CES 69280 b
	1860	+	HB5290 Enrolled - 53 - LRB103 39138 CES 69280 b
	1861	+	1 portion of a loan or loans that is secured by property
	1862	+	2 eligible for a Section 201(f) investment credit to the
	1863	+	3 borrower, the entire principal amount of the loan or
	1864	+	4 loans between the taxpayer and the borrower should be
	1865	+	5 divided into the basis of the Section 201(f)
	1866	+	6 investment credit property which secures the loan or
	1867	+	7 loans, using for this purpose the original basis of
	1868	+	8 such property on the date that it was placed in service
	1869	+	9 in the River Edge Redevelopment Zone. The subtraction
	1870	+	10 modification available to the taxpayer in any year
	1871	+	11 under this subsection shall be that portion of the
	1872	+	12 total interest paid by the borrower with respect to
	1873	+	13 such loan attributable to the eligible property as
	1874	+	14 calculated under the previous sentence. This
	1875	+	15 subparagraph (M) is exempt from the provisions of
	1876	+	16 Section 250;
	1877	+	17 (M-1) For any taxpayer that is a financial
	1878	+	18 organization within the meaning of Section 304(c) of
	1879	+	19 this Act, an amount included in such total as interest
	1880	+	20 income from a loan or loans made by such taxpayer to a
	1881	+	21 borrower, to the extent that such a loan is secured by
	1882	+	22 property which is eligible for the High Impact
	1883	+	23 Business Investment Credit. To determine the portion
	1884	+	24 of a loan or loans that is secured by property eligible
	1885	+	25 for a Section 201(h) investment credit to the
	1886	+	26 borrower, the entire principal amount of the loan or
	1887	+
	1888	+
	1889	+
	1890	+
	1891	+
	1892	+	HB5290 Enrolled - 53 - LRB103 39138 CES 69280 b
	1893	+
	1894	+
	1895	+	HB5290 Enrolled- 54 -LRB103 39138 CES 69280 b HB5290 Enrolled - 54 - LRB103 39138 CES 69280 b
	1896	+	HB5290 Enrolled - 54 - LRB103 39138 CES 69280 b
	1897	+	1 loans between the taxpayer and the borrower should be
	1898	+	2 divided into the basis of the Section 201(h)
	1899	+	3 investment credit property which secures the loan or
	1900	+	4 loans, using for this purpose the original basis of
	1901	+	5 such property on the date that it was placed in service
	1902	+	6 in a federally designated Foreign Trade Zone or
	1903	+	7 Sub-Zone located in Illinois. No taxpayer that is
	1904	+	8 eligible for the deduction provided in subparagraph
	1905	+	9 (M) of paragraph (2) of this subsection shall be
	1906	+	10 eligible for the deduction provided under this
	1907	+	11 subparagraph (M-1). The subtraction modification
	1908	+	12 available to taxpayers in any year under this
	1909	+	13 subsection shall be that portion of the total interest
	1910	+	14 paid by the borrower with respect to such loan
	1911	+	15 attributable to the eligible property as calculated
	1912	+	16 under the previous sentence;
	1913	+	17 (N) Two times any contribution made during the
	1914	+	18 taxable year to a designated zone organization to the
	1915	+	19 extent that the contribution (i) qualifies as a
	1916	+	20 charitable contribution under subsection (c) of
	1917	+	21 Section 170 of the Internal Revenue Code and (ii)
	1918	+	22 must, by its terms, be used for a project approved by
	1919	+	23 the Department of Commerce and Economic Opportunity
	1920	+	24 under Section 11 of the Illinois Enterprise Zone Act
	1921	+	25 or under Section 10-10 of the River Edge Redevelopment
	1922	+	26 Zone Act. This subparagraph (N) is exempt from the
	1923	+
	1924	+
	1925	+
	1926	+
	1927	+
	1928	+	HB5290 Enrolled - 54 - LRB103 39138 CES 69280 b
	1929	+
	1930	+
	1931	+	HB5290 Enrolled- 55 -LRB103 39138 CES 69280 b HB5290 Enrolled - 55 - LRB103 39138 CES 69280 b
	1932	+	HB5290 Enrolled - 55 - LRB103 39138 CES 69280 b
	1933	+	1 provisions of Section 250;
	1934	+	2 (O) An amount equal to: (i) 85% for taxable years
	1935	+	3 ending on or before December 31, 1992, or, a
	1936	+	4 percentage equal to the percentage allowable under
	1937	+	5 Section 243(a)(1) of the Internal Revenue Code of 1986
	1938	+	6 for taxable years ending after December 31, 1992, of
	1939	+	7 the amount by which dividends included in taxable
	1940	+	8 income and received from a corporation that is not
	1941	+	9 created or organized under the laws of the United
	1942	+	10 States or any state or political subdivision thereof,
	1943	+	11 including, for taxable years ending on or after
	1944	+	12 December 31, 1988, dividends received or deemed
	1945	+	13 received or paid or deemed paid under Sections 951
	1946	+	14 through 965 of the Internal Revenue Code, exceed the
	1947	+	15 amount of the modification provided under subparagraph
	1948	+	16 (G) of paragraph (2) of this subsection (b) which is
	1949	+	17 related to such dividends, and including, for taxable
	1950	+	18 years ending on or after December 31, 2008, dividends
	1951	+	19 received from a captive real estate investment trust;
	1952	+	20 plus (ii) 100% of the amount by which dividends,
	1953	+	21 included in taxable income and received, including,
	1954	+	22 for taxable years ending on or after December 31,
	1955	+	23 1988, dividends received or deemed received or paid or
	1956	+	24 deemed paid under Sections 951 through 964 of the
	1957	+	25 Internal Revenue Code and including, for taxable years
	1958	+	26 ending on or after December 31, 2008, dividends
	1959	+
	1960	+
	1961	+
	1962	+
	1963	+
	1964	+	HB5290 Enrolled - 55 - LRB103 39138 CES 69280 b
	1965	+
	1966	+
	1967	+	HB5290 Enrolled- 56 -LRB103 39138 CES 69280 b HB5290 Enrolled - 56 - LRB103 39138 CES 69280 b
	1968	+	HB5290 Enrolled - 56 - LRB103 39138 CES 69280 b
	1969	+	1 received from a captive real estate investment trust,
	1970	+	2 from any such corporation specified in clause (i) that
	1971	+	3 would but for the provisions of Section 1504(b)(3) of
	1972	+	4 the Internal Revenue Code be treated as a member of the
	1973	+	5 affiliated group which includes the dividend
	1974	+	6 recipient, exceed the amount of the modification
	1975	+	7 provided under subparagraph (G) of paragraph (2) of
	1976	+	8 this subsection (b) which is related to such
	1977	+	9 dividends. For taxable years ending on or after June
	1978	+	10 30, 2021, (i) for purposes of this subparagraph, the
	1979	+	11 term "dividend" does not include any amount treated as
	1980	+	12 a dividend under Section 1248 of the Internal Revenue
	1981	+	13 Code, and (ii) this subparagraph shall not apply to
	1982	+	14 dividends for which a deduction is allowed under
	1983	+	15 Section 245(a) of the Internal Revenue Code. This
	1984	+	16 subparagraph (O) is exempt from the provisions of
	1985	+	17 Section 250 of this Act;
	1986	+	18 (P) An amount equal to any contribution made to a
	1987	+	19 job training project established pursuant to the Tax
	1988	+	20 Increment Allocation Redevelopment Act;
	1989	+	21 (Q) An amount equal to the amount of the deduction
	1990	+	22 used to compute the federal income tax credit for
	1991	+	23 restoration of substantial amounts held under claim of
	1992	+	24 right for the taxable year pursuant to Section 1341 of
	1993	+	25 the Internal Revenue Code;
	1994	+	26 (R) On and after July 20, 1999, in the case of an
	1995	+
	1996	+
	1997	+
	1998	+
	1999	+
	2000	+	HB5290 Enrolled - 56 - LRB103 39138 CES 69280 b
	2001	+
	2002	+
	2003	+	HB5290 Enrolled- 57 -LRB103 39138 CES 69280 b HB5290 Enrolled - 57 - LRB103 39138 CES 69280 b
	2004	+	HB5290 Enrolled - 57 - LRB103 39138 CES 69280 b
	2005	+	1 attorney-in-fact with respect to whom an interinsurer
	2006	+	2 or a reciprocal insurer has made the election under
	2007	+	3 Section 835 of the Internal Revenue Code, 26 U.S.C.
	2008	+	4 835, an amount equal to the excess, if any, of the
	2009	+	5 amounts paid or incurred by that interinsurer or
	2010	+	6 reciprocal insurer in the taxable year to the
	2011	+	7 attorney-in-fact over the deduction allowed to that
	2012	+	8 interinsurer or reciprocal insurer with respect to the
	2013	+	9 attorney-in-fact under Section 835(b) of the Internal
	2014	+	10 Revenue Code for the taxable year; the provisions of
	2015	+	11 this subparagraph are exempt from the provisions of
	2016	+	12 Section 250;
	2017	+	13 (S) For taxable years ending on or after December
	2018	+	14 31, 1997, in the case of a Subchapter S corporation, an
	2019	+	15 amount equal to all amounts of income allocable to a
	2020	+	16 shareholder subject to the Personal Property Tax
	2021	+	17 Replacement Income Tax imposed by subsections (c) and
	2022	+	18 (d) of Section 201 of this Act, including amounts
	2023	+	19 allocable to organizations exempt from federal income
	2024	+	20 tax by reason of Section 501(a) of the Internal
	2025	+	21 Revenue Code. This subparagraph (S) is exempt from the
	2026	+	22 provisions of Section 250;
	2027	+	23 (T) For taxable years 2001 and thereafter, for the
	2028	+	24 taxable year in which the bonus depreciation deduction
	2029	+	25 is taken on the taxpayer's federal income tax return
	2030	+	26 under subsection (k) of Section 168 of the Internal
	2031	+
	2032	+
	2033	+
	2034	+
	2035	+
	2036	+	HB5290 Enrolled - 57 - LRB103 39138 CES 69280 b
	2037	+
	2038	+
	2039	+	HB5290 Enrolled- 58 -LRB103 39138 CES 69280 b HB5290 Enrolled - 58 - LRB103 39138 CES 69280 b
	2040	+	HB5290 Enrolled - 58 - LRB103 39138 CES 69280 b
	2041	+	1 Revenue Code and for each applicable taxable year
	2042	+	2 thereafter, an amount equal to "x", where:
	2043	+	3 (1) "y" equals the amount of the depreciation
	2044	+	4 deduction taken for the taxable year on the
	2045	+	5 taxpayer's federal income tax return on property
	2046	+	6 for which the bonus depreciation deduction was
	2047	+	7 taken in any year under subsection (k) of Section
	2048	+	8 168 of the Internal Revenue Code, but not
	2049	+	9 including the bonus depreciation deduction;
	2050	+	10 (2) for taxable years ending on or before
	2051	+	11 December 31, 2005, "x" equals "y" multiplied by 30
	2052	+	12 and then divided by 70 (or "y" multiplied by
	2053	+	13 0.429); and
	2054	+	14 (3) for taxable years ending after December
	2055	+	15 31, 2005:
	2056	+	16 (i) for property on which a bonus
	2057	+	17 depreciation deduction of 30% of the adjusted
	2058	+	18 basis was taken, "x" equals "y" multiplied by
	2059	+	19 30 and then divided by 70 (or "y" multiplied
	2060	+	20 by 0.429);
	2061	+	21 (ii) for property on which a bonus
	2062	+	22 depreciation deduction of 50% of the adjusted
	2063	+	23 basis was taken, "x" equals "y" multiplied by
	2064	+	24 1.0;
	2065	+	25 (iii) for property on which a bonus
	2066	+	26 depreciation deduction of 100% of the adjusted
	2067	+
	2068	+
	2069	+
	2070	+
	2071	+
	2072	+	HB5290 Enrolled - 58 - LRB103 39138 CES 69280 b
	2073	+
	2074	+
	2075	+	HB5290 Enrolled- 59 -LRB103 39138 CES 69280 b HB5290 Enrolled - 59 - LRB103 39138 CES 69280 b
	2076	+	HB5290 Enrolled - 59 - LRB103 39138 CES 69280 b
	2077	+	1 basis was taken in a taxable year ending on or
	2078	+	2 after December 31, 2021, "x" equals the
	2079	+	3 depreciation deduction that would be allowed
	2080	+	4 on that property if the taxpayer had made the
	2081	+	5 election under Section 168(k)(7) of the
	2082	+	6 Internal Revenue Code to not claim bonus
	2083	+	7 depreciation on that property; and
	2084	+	8 (iv) for property on which a bonus
	2085	+	9 depreciation deduction of a percentage other
	2086	+	10 than 30%, 50% or 100% of the adjusted basis
	2087	+	11 was taken in a taxable year ending on or after
	2088	+	12 December 31, 2021, "x" equals "y" multiplied
	2089	+	13 by 100 times the percentage bonus depreciation
	2090	+	14 on the property (that is, 100(bonus%)) and
	2091	+	15 then divided by 100 times 1 minus the
	2092	+	16 percentage bonus depreciation on the property
	2093	+	17 (that is, 100(1-bonus%)).
	2094	+	18 The aggregate amount deducted under this
	2095	+	19 subparagraph in all taxable years for any one piece of
	2096	+	20 property may not exceed the amount of the bonus
	2097	+	21 depreciation deduction taken on that property on the
	2098	+	22 taxpayer's federal income tax return under subsection
	2099	+	23 (k) of Section 168 of the Internal Revenue Code. This
	2100	+	24 subparagraph (T) is exempt from the provisions of
	2101	+	25 Section 250;
	2102	+	26 (U) If the taxpayer sells, transfers, abandons, or
	2103	+
	2104	+
	2105	+
	2106	+
	2107	+
	2108	+	HB5290 Enrolled - 59 - LRB103 39138 CES 69280 b
	2109	+
	2110	+
	2111	+	HB5290 Enrolled- 60 -LRB103 39138 CES 69280 b HB5290 Enrolled - 60 - LRB103 39138 CES 69280 b
	2112	+	HB5290 Enrolled - 60 - LRB103 39138 CES 69280 b
	2113	+	1 otherwise disposes of property for which the taxpayer
	2114	+	2 was required in any taxable year to make an addition
	2115	+	3 modification under subparagraph (E-10), then an amount
	2116	+	4 equal to that addition modification.
	2117	+	5 If the taxpayer continues to own property through
	2118	+	6 the last day of the last tax year for which a
	2119	+	7 subtraction is allowed with respect to that property
	2120	+	8 under subparagraph (T) and for which the taxpayer was
	2121	+	9 required in any taxable year to make an addition
	2122	+	10 modification under subparagraph (E-10), then an amount
	2123	+	11 equal to that addition modification.
	2124	+	12 The taxpayer is allowed to take the deduction
	2125	+	13 under this subparagraph only once with respect to any
	2126	+	14 one piece of property.
	2127	+	15 This subparagraph (U) is exempt from the
	2128	+	16 provisions of Section 250;
	2129	+	17 (V) The amount of: (i) any interest income (net of
	2130	+	18 the deductions allocable thereto) taken into account
	2131	+	19 for the taxable year with respect to a transaction
	2132	+	20 with a taxpayer that is required to make an addition
	2133	+	21 modification with respect to such transaction under
	2134	+	22 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
	2135	+	23 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
	2136	+	24 the amount of such addition modification, (ii) any
	2137	+	25 income from intangible property (net of the deductions
	2138	+	26 allocable thereto) taken into account for the taxable
	2139	+
	2140	+
	2141	+
	2142	+
	2143	+
	2144	+	HB5290 Enrolled - 60 - LRB103 39138 CES 69280 b
	2145	+
	2146	+
	2147	+	HB5290 Enrolled- 61 -LRB103 39138 CES 69280 b HB5290 Enrolled - 61 - LRB103 39138 CES 69280 b
	2148	+	HB5290 Enrolled - 61 - LRB103 39138 CES 69280 b
	2149	+	1 year with respect to a transaction with a taxpayer
	2150	+	2 that is required to make an addition modification with
	2151	+	3 respect to such transaction under Section
	2152	+	4 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
	2153	+	5 203(d)(2)(D-8), but not to exceed the amount of such
	2154	+	6 addition modification, and (iii) any insurance premium
	2155	+	7 income (net of deductions allocable thereto) taken
	2156	+	8 into account for the taxable year with respect to a
	2157	+	9 transaction with a taxpayer that is required to make
	2158	+	10 an addition modification with respect to such
	2159	+	11 transaction under Section 203(a)(2)(D-19), Section
	2160	+	12 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
	2161	+	13 203(d)(2)(D-9), but not to exceed the amount of that
	2162	+	14 addition modification. This subparagraph (V) is exempt
	2163	+	15 from the provisions of Section 250;
	2164	+	16 (W) An amount equal to the interest income taken
	2165	+	17 into account for the taxable year (net of the
	2166	+	18 deductions allocable thereto) with respect to
	2167	+	19 transactions with (i) a foreign person who would be a
	2168	+	20 member of the taxpayer's unitary business group but
	2169	+	21 for the fact that the foreign person's business
	2170	+	22 activity outside the United States is 80% or more of
	2171	+	23 that person's total business activity and (ii) for
	2172	+	24 taxable years ending on or after December 31, 2008, to
	2173	+	25 a person who would be a member of the same unitary
	2174	+	26 business group but for the fact that the person is
	2175	+
	2176	+
	2177	+
	2178	+
	2179	+
	2180	+	HB5290 Enrolled - 61 - LRB103 39138 CES 69280 b
	2181	+
	2182	+
	2183	+	HB5290 Enrolled- 62 -LRB103 39138 CES 69280 b HB5290 Enrolled - 62 - LRB103 39138 CES 69280 b
	2184	+	HB5290 Enrolled - 62 - LRB103 39138 CES 69280 b
	2185	+	1 prohibited under Section 1501(a)(27) from being
	2186	+	2 included in the unitary business group because he or
	2187	+	3 she is ordinarily required to apportion business
	2188	+	4 income under different subsections of Section 304, but
	2189	+	5 not to exceed the addition modification required to be
	2190	+	6 made for the same taxable year under Section
	2191	+	7 203(b)(2)(E-12) for interest paid, accrued, or
	2192	+	8 incurred, directly or indirectly, to the same person.
	2193	+	9 This subparagraph (W) is exempt from the provisions of
	2194	+	10 Section 250;
	2195	+	11 (X) An amount equal to the income from intangible
	2196	+	12 property taken into account for the taxable year (net
	2197	+	13 of the deductions allocable thereto) with respect to
	2198	+	14 transactions with (i) a foreign person who would be a
	2199	+	15 member of the taxpayer's unitary business group but
	2200	+	16 for the fact that the foreign person's business
	2201	+	17 activity outside the United States is 80% or more of
	2202	+	18 that person's total business activity and (ii) for
	2203	+	19 taxable years ending on or after December 31, 2008, to
	2204	+	20 a person who would be a member of the same unitary
	2205	+	21 business group but for the fact that the person is
	2206	+	22 prohibited under Section 1501(a)(27) from being
	2207	+	23 included in the unitary business group because he or
	2208	+	24 she is ordinarily required to apportion business
	2209	+	25 income under different subsections of Section 304, but
	2210	+	26 not to exceed the addition modification required to be
	2211	+
	2212	+
	2213	+
	2214	+
	2215	+
	2216	+	HB5290 Enrolled - 62 - LRB103 39138 CES 69280 b
	2217	+
	2218	+
	2219	+	HB5290 Enrolled- 63 -LRB103 39138 CES 69280 b HB5290 Enrolled - 63 - LRB103 39138 CES 69280 b
	2220	+	HB5290 Enrolled - 63 - LRB103 39138 CES 69280 b
	2221	+	1 made for the same taxable year under Section
	2222	+	2 203(b)(2)(E-13) for intangible expenses and costs
	2223	+	3 paid, accrued, or incurred, directly or indirectly, to
	2224	+	4 the same foreign person. This subparagraph (X) is
	2225	+	5 exempt from the provisions of Section 250;
	2226	+	6 (Y) For taxable years ending on or after December
	2227	+	7 31, 2011, in the case of a taxpayer who was required to
	2228	+	8 add back any insurance premiums under Section
	2229	+	9 203(b)(2)(E-14), such taxpayer may elect to subtract
	2230	+	10 that part of a reimbursement received from the
	2231	+	11 insurance company equal to the amount of the expense
	2232	+	12 or loss (including expenses incurred by the insurance
	2233	+	13 company) that would have been taken into account as a
	2234	+	14 deduction for federal income tax purposes if the
	2235	+	15 expense or loss had been uninsured. If a taxpayer
	2236	+	16 makes the election provided for by this subparagraph
	2237	+	17 (Y), the insurer to which the premiums were paid must
	2238	+	18 add back to income the amount subtracted by the
	2239	+	19 taxpayer pursuant to this subparagraph (Y). This
	2240	+	20 subparagraph (Y) is exempt from the provisions of
	2241	+	21 Section 250;
	2242	+	22 (Z) The difference between the nondeductible
	2243	+	23 controlled foreign corporation dividends under Section
	2244	+	24 965(e)(3) of the Internal Revenue Code over the
	2245	+	25 taxable income of the taxpayer, computed without
	2246	+	26 regard to Section 965(e)(2)(A) of the Internal Revenue
	2247	+
	2248	+
	2249	+
	2250	+
	2251	+
	2252	+	HB5290 Enrolled - 63 - LRB103 39138 CES 69280 b
	2253	+
	2254	+
	2255	+	HB5290 Enrolled- 64 -LRB103 39138 CES 69280 b HB5290 Enrolled - 64 - LRB103 39138 CES 69280 b
	2256	+	HB5290 Enrolled - 64 - LRB103 39138 CES 69280 b
	2257	+	1 Code, and without regard to any net operating loss
	2258	+	2 deduction. This subparagraph (Z) is exempt from the
	2259	+	3 provisions of Section 250; and
	2260	+	4 (AA) For taxable years beginning on or after
	2261	+	5 January 1, 2023, for any cannabis establishment
	2262	+	6 operating in this State and licensed under the
	2263	+	7 Cannabis Regulation and Tax Act or any cannabis
	2264	+	8 cultivation center or medical cannabis dispensing
	2265	+	9 organization operating in this State and licensed
	2266	+	10 under the Compassionate Use of Medical Cannabis
	2267	+	11 Program Act, an amount equal to the deductions that
	2268	+	12 were disallowed under Section 280E of the Internal
	2269	+	13 Revenue Code for the taxable year and that would not be
	2270	+	14 added back under this subsection. The provisions of
	2271	+	15 this subparagraph (AA) are exempt from the provisions
	2272	+	16 of Section 250.
	2273	+	17 (3) Special rule. For purposes of paragraph (2)(A),
	2274	+	18 "gross income" in the case of a life insurance company,
	2275	+	19 for tax years ending on and after December 31, 1994, and
	2276	+	20 prior to December 31, 2011, shall mean the gross
	2277	+	21 investment income for the taxable year and, for tax years
	2278	+	22 ending on or after December 31, 2011, shall mean all
	2279	+	23 amounts included in life insurance gross income under
	2280	+	24 Section 803(a)(3) of the Internal Revenue Code.
	2281	+	25 (c) Trusts and estates.
	2282	+
	2283	+
	2284	+
	2285	+
	2286	+
	2287	+	HB5290 Enrolled - 64 - LRB103 39138 CES 69280 b
	2288	+
	2289	+
	2290	+	HB5290 Enrolled- 65 -LRB103 39138 CES 69280 b HB5290 Enrolled - 65 - LRB103 39138 CES 69280 b
	2291	+	HB5290 Enrolled - 65 - LRB103 39138 CES 69280 b
	2292	+	1 (1) In general. In the case of a trust or estate, base
	2293	+	2 income means an amount equal to the taxpayer's taxable
	2294	+	3 income for the taxable year as modified by paragraph (2).
	2295	+	4 (2) Modifications. Subject to the provisions of
	2296	+	5 paragraph (3), the taxable income referred to in paragraph
	2297	+	6 (1) shall be modified by adding thereto the sum of the
	2298	+	7 following amounts:
	2299	+	8 (A) An amount equal to all amounts paid or accrued
	2300	+	9 to the taxpayer as interest or dividends during the
	2301	+	10 taxable year to the extent excluded from gross income
	2302	+	11 in the computation of taxable income;
	2303	+	12 (B) In the case of (i) an estate, $600; (ii) a
	2304	+	13 trust which, under its governing instrument, is
	2305	+	14 required to distribute all of its income currently,
	2306	+	15 $300; and (iii) any other trust, $100, but in each such
	2307	+	16 case, only to the extent such amount was deducted in
	2308	+	17 the computation of taxable income;
	2309	+	18 (C) An amount equal to the amount of tax imposed by
	2310	+	19 this Act to the extent deducted from gross income in
	2311	+	20 the computation of taxable income for the taxable
	2312	+	21 year;
	2313	+	22 (D) The amount of any net operating loss deduction
	2314	+	23 taken in arriving at taxable income, other than a net
	2315	+	24 operating loss carried forward from a taxable year
	2316	+	25 ending prior to December 31, 1986;
	2317	+	26 (E) For taxable years in which a net operating
	2318	+
	2319	+
	2320	+
	2321	+
	2322	+
	2323	+	HB5290 Enrolled - 65 - LRB103 39138 CES 69280 b
	2324	+
	2325	+
	2326	+	HB5290 Enrolled- 66 -LRB103 39138 CES 69280 b HB5290 Enrolled - 66 - LRB103 39138 CES 69280 b
	2327	+	HB5290 Enrolled - 66 - LRB103 39138 CES 69280 b
	2328	+	1 loss carryback or carryforward from a taxable year
	2329	+	2 ending prior to December 31, 1986 is an element of
	2330	+	3 taxable income under paragraph (1) of subsection (e)
	2331	+	4 or subparagraph (E) of paragraph (2) of subsection
	2332	+	5 (e), the amount by which addition modifications other
	2333	+	6 than those provided by this subparagraph (E) exceeded
	2334	+	7 subtraction modifications in such taxable year, with
	2335	+	8 the following limitations applied in the order that
	2336	+	9 they are listed:
	2337	+	10 (i) the addition modification relating to the
	2338	+	11 net operating loss carried back or forward to the
	2339	+	12 taxable year from any taxable year ending prior to
	2340	+	13 December 31, 1986 shall be reduced by the amount
	2341	+	14 of addition modification under this subparagraph
	2342	+	15 (E) which related to that net operating loss and
	2343	+	16 which was taken into account in calculating the
	2344	+	17 base income of an earlier taxable year, and
	2345	+	18 (ii) the addition modification relating to the
	2346	+	19 net operating loss carried back or forward to the
	2347	+	20 taxable year from any taxable year ending prior to
	2348	+	21 December 31, 1986 shall not exceed the amount of
	2349	+	22 such carryback or carryforward;
	2350	+	23 For taxable years in which there is a net
	2351	+	24 operating loss carryback or carryforward from more
	2352	+	25 than one other taxable year ending prior to December
	2353	+	26 31, 1986, the addition modification provided in this
	2354	+
	2355	+
	2356	+
	2357	+
	2358	+
	2359	+	HB5290 Enrolled - 66 - LRB103 39138 CES 69280 b
	2360	+
	2361	+
	2362	+	HB5290 Enrolled- 67 -LRB103 39138 CES 69280 b HB5290 Enrolled - 67 - LRB103 39138 CES 69280 b
	2363	+	HB5290 Enrolled - 67 - LRB103 39138 CES 69280 b
	2364	+	1 subparagraph (E) shall be the sum of the amounts
	2365	+	2 computed independently under the preceding provisions
	2366	+	3 of this subparagraph (E) for each such taxable year;
	2367	+	4 (F) For taxable years ending on or after January
	2368	+	5 1, 1989, an amount equal to the tax deducted pursuant
	2369	+	6 to Section 164 of the Internal Revenue Code if the
	2370	+	7 trust or estate is claiming the same tax for purposes
	2371	+	8 of the Illinois foreign tax credit under Section 601
	2372	+	9 of this Act;
	2373	+	10 (G) An amount equal to the amount of the capital
	2374	+	11 gain deduction allowable under the Internal Revenue
	2375	+	12 Code, to the extent deducted from gross income in the
	2376	+	13 computation of taxable income;
	2377	+	14 (G-5) For taxable years ending after December 31,
	2378	+	15 1997, an amount equal to any eligible remediation
	2379	+	16 costs that the trust or estate deducted in computing
	2380	+	17 adjusted gross income and for which the trust or
	2381	+	18 estate claims a credit under subsection (l) of Section
	2382	+	19 201;
	2383	+	20 (G-10) For taxable years 2001 and thereafter, an
	2384	+	21 amount equal to the bonus depreciation deduction taken
	2385	+	22 on the taxpayer's federal income tax return for the
	2386	+	23 taxable year under subsection (k) of Section 168 of
	2387	+	24 the Internal Revenue Code; and
	2388	+	25 (G-11) If the taxpayer sells, transfers, abandons,
	2389	+	26 or otherwise disposes of property for which the
	2390	+
	2391	+
	2392	+
	2393	+
	2394	+
	2395	+	HB5290 Enrolled - 67 - LRB103 39138 CES 69280 b
	2396	+
	2397	+
	2398	+	HB5290 Enrolled- 68 -LRB103 39138 CES 69280 b HB5290 Enrolled - 68 - LRB103 39138 CES 69280 b
	2399	+	HB5290 Enrolled - 68 - LRB103 39138 CES 69280 b
	2400	+	1 taxpayer was required in any taxable year to make an
	2401	+	2 addition modification under subparagraph (G-10), then
	2402	+	3 an amount equal to the aggregate amount of the
	2403	+	4 deductions taken in all taxable years under
	2404	+	5 subparagraph (R) with respect to that property.
	2405	+	6 If the taxpayer continues to own property through
	2406	+	7 the last day of the last tax year for which a
	2407	+	8 subtraction is allowed with respect to that property
	2408	+	9 under subparagraph (R) and for which the taxpayer was
	2409	+	10 allowed in any taxable year to make a subtraction
	2410	+	11 modification under subparagraph (R), then an amount
	2411	+	12 equal to that subtraction modification.
	2412	+	13 The taxpayer is required to make the addition
	2413	+	14 modification under this subparagraph only once with
	2414	+	15 respect to any one piece of property;
	2415	+	16 (G-12) An amount equal to the amount otherwise
	2416	+	17 allowed as a deduction in computing base income for
	2417	+	18 interest paid, accrued, or incurred, directly or
	2418	+	19 indirectly, (i) for taxable years ending on or after
	2419	+	20 December 31, 2004, to a foreign person who would be a
	2420	+	21 member of the same unitary business group but for the
	2421	+	22 fact that the foreign person's business activity
	2422	+	23 outside the United States is 80% or more of the foreign
	2423	+	24 person's total business activity and (ii) for taxable
	2424	+	25 years ending on or after December 31, 2008, to a person
	2425	+	26 who would be a member of the same unitary business
	2426	+
	2427	+
	2428	+
	2429	+
	2430	+
	2431	+	HB5290 Enrolled - 68 - LRB103 39138 CES 69280 b
	2432	+
	2433	+
	2434	+	HB5290 Enrolled- 69 -LRB103 39138 CES 69280 b HB5290 Enrolled - 69 - LRB103 39138 CES 69280 b
	2435	+	HB5290 Enrolled - 69 - LRB103 39138 CES 69280 b
	2436	+	1 group but for the fact that the person is prohibited
	2437	+	2 under Section 1501(a)(27) from being included in the
	2438	+	3 unitary business group because he or she is ordinarily
	2439	+	4 required to apportion business income under different
	2440	+	5 subsections of Section 304. The addition modification
	2441	+	6 required by this subparagraph shall be reduced to the
	2442	+	7 extent that dividends were included in base income of
	2443	+	8 the unitary group for the same taxable year and
	2444	+	9 received by the taxpayer or by a member of the
	2445	+	10 taxpayer's unitary business group (including amounts
	2446	+	11 included in gross income pursuant to Sections 951
	2447	+	12 through 964 of the Internal Revenue Code and amounts
	2448	+	13 included in gross income under Section 78 of the
	2449	+	14 Internal Revenue Code) with respect to the stock of
	2450	+	15 the same person to whom the interest was paid,
	2451	+	16 accrued, or incurred.
	2452	+	17 This paragraph shall not apply to the following:
	2453	+	18 (i) an item of interest paid, accrued, or
	2454	+	19 incurred, directly or indirectly, to a person who
	2455	+	20 is subject in a foreign country or state, other
	2456	+	21 than a state which requires mandatory unitary
	2457	+	22 reporting, to a tax on or measured by net income
	2458	+	23 with respect to such interest; or
	2459	+	24 (ii) an item of interest paid, accrued, or
	2460	+	25 incurred, directly or indirectly, to a person if
	2461	+	26 the taxpayer can establish, based on a
	2462	+
	2463	+
	2464	+
	2465	+
	2466	+
	2467	+	HB5290 Enrolled - 69 - LRB103 39138 CES 69280 b
	2468	+
	2469	+
	2470	+	HB5290 Enrolled- 70 -LRB103 39138 CES 69280 b HB5290 Enrolled - 70 - LRB103 39138 CES 69280 b
	2471	+	HB5290 Enrolled - 70 - LRB103 39138 CES 69280 b
	2472	+	1 preponderance of the evidence, both of the
	2473	+	2 following:
	2474	+	3 (a) the person, during the same taxable
	2475	+	4 year, paid, accrued, or incurred, the interest
	2476	+	5 to a person that is not a related member, and
	2477	+	6 (b) the transaction giving rise to the
	2478	+	7 interest expense between the taxpayer and the
	2479	+	8 person did not have as a principal purpose the
	2480	+	9 avoidance of Illinois income tax, and is paid
	2481	+	10 pursuant to a contract or agreement that
	2482	+	11 reflects an arm's-length interest rate and
	2483	+	12 terms; or
	2484	+	13 (iii) the taxpayer can establish, based on
	2485	+	14 clear and convincing evidence, that the interest
	2486	+	15 paid, accrued, or incurred relates to a contract
	2487	+	16 or agreement entered into at arm's-length rates
	2488	+	17 and terms and the principal purpose for the
	2489	+	18 payment is not federal or Illinois tax avoidance;
	2490	+	19 or
	2491	+	20 (iv) an item of interest paid, accrued, or
	2492	+	21 incurred, directly or indirectly, to a person if
	2493	+	22 the taxpayer establishes by clear and convincing
	2494	+	23 evidence that the adjustments are unreasonable; or
	2495	+	24 if the taxpayer and the Director agree in writing
	2496	+	25 to the application or use of an alternative method
	2497	+	26 of apportionment under Section 304(f).
	2498	+
	2499	+
	2500	+
	2501	+
	2502	+
	2503	+	HB5290 Enrolled - 70 - LRB103 39138 CES 69280 b
	2504	+
	2505	+
	2506	+	HB5290 Enrolled- 71 -LRB103 39138 CES 69280 b HB5290 Enrolled - 71 - LRB103 39138 CES 69280 b
	2507	+	HB5290 Enrolled - 71 - LRB103 39138 CES 69280 b
	2508	+	1 Nothing in this subsection shall preclude the
	2509	+	2 Director from making any other adjustment
	2510	+	3 otherwise allowed under Section 404 of this Act
	2511	+	4 for any tax year beginning after the effective
	2512	+	5 date of this amendment provided such adjustment is
	2513	+	6 made pursuant to regulation adopted by the
	2514	+	7 Department and such regulations provide methods
	2515	+	8 and standards by which the Department will utilize
	2516	+	9 its authority under Section 404 of this Act;
	2517	+	10 (G-13) An amount equal to the amount of intangible
	2518	+	11 expenses and costs otherwise allowed as a deduction in
	2519	+	12 computing base income, and that were paid, accrued, or
	2520	+	13 incurred, directly or indirectly, (i) for taxable
	2521	+	14 years ending on or after December 31, 2004, to a
	2522	+	15 foreign person who would be a member of the same
	2523	+	16 unitary business group but for the fact that the
	2524	+	17 foreign person's business activity outside the United
	2525	+	18 States is 80% or more of that person's total business
	2526	+	19 activity and (ii) for taxable years ending on or after
	2527	+	20 December 31, 2008, to a person who would be a member of
	2528	+	21 the same unitary business group but for the fact that
	2529	+	22 the person is prohibited under Section 1501(a)(27)
	2530	+	23 from being included in the unitary business group
	2531	+	24 because he or she is ordinarily required to apportion
	2532	+	25 business income under different subsections of Section
	2533	+	26 304. The addition modification required by this
	2534	+
	2535	+
	2536	+
	2537	+
	2538	+
	2539	+	HB5290 Enrolled - 71 - LRB103 39138 CES 69280 b
	2540	+
	2541	+
	2542	+	HB5290 Enrolled- 72 -LRB103 39138 CES 69280 b HB5290 Enrolled - 72 - LRB103 39138 CES 69280 b
	2543	+	HB5290 Enrolled - 72 - LRB103 39138 CES 69280 b
	2544	+	1 subparagraph shall be reduced to the extent that
	2545	+	2 dividends were included in base income of the unitary
	2546	+	3 group for the same taxable year and received by the
	2547	+	4 taxpayer or by a member of the taxpayer's unitary
	2548	+	5 business group (including amounts included in gross
	2549	+	6 income pursuant to Sections 951 through 964 of the
	2550	+	7 Internal Revenue Code and amounts included in gross
	2551	+	8 income under Section 78 of the Internal Revenue Code)
	2552	+	9 with respect to the stock of the same person to whom
	2553	+	10 the intangible expenses and costs were directly or
	2554	+	11 indirectly paid, incurred, or accrued. The preceding
	2555	+	12 sentence shall not apply to the extent that the same
	2556	+	13 dividends caused a reduction to the addition
	2557	+	14 modification required under Section 203(c)(2)(G-12) of
	2558	+	15 this Act. As used in this subparagraph, the term
	2559	+	16 "intangible expenses and costs" includes: (1)
	2560	+	17 expenses, losses, and costs for or related to the
	2561	+	18 direct or indirect acquisition, use, maintenance or
	2562	+	19 management, ownership, sale, exchange, or any other
	2563	+	20 disposition of intangible property; (2) losses
	2564	+	21 incurred, directly or indirectly, from factoring
	2565	+	22 transactions or discounting transactions; (3) royalty,
	2566	+	23 patent, technical, and copyright fees; (4) licensing
	2567	+	24 fees; and (5) other similar expenses and costs. For
	2568	+	25 purposes of this subparagraph, "intangible property"
	2569	+	26 includes patents, patent applications, trade names,
	2570	+
	2571	+
	2572	+
	2573	+
	2574	+
	2575	+	HB5290 Enrolled - 72 - LRB103 39138 CES 69280 b
	2576	+
	2577	+
	2578	+	HB5290 Enrolled- 73 -LRB103 39138 CES 69280 b HB5290 Enrolled - 73 - LRB103 39138 CES 69280 b
	2579	+	HB5290 Enrolled - 73 - LRB103 39138 CES 69280 b
	2580	+	1 trademarks, service marks, copyrights, mask works,
	2581	+	2 trade secrets, and similar types of intangible assets.
	2582	+	3 This paragraph shall not apply to the following:
	2583	+	4 (i) any item of intangible expenses or costs
	2584	+	5 paid, accrued, or incurred, directly or
	2585	+	6 indirectly, from a transaction with a person who
	2586	+	7 is subject in a foreign country or state, other
	2587	+	8 than a state which requires mandatory unitary
	2588	+	9 reporting, to a tax on or measured by net income
	2589	+	10 with respect to such item; or
	2590	+	11 (ii) any item of intangible expense or cost
	2591	+	12 paid, accrued, or incurred, directly or
	2592	+	13 indirectly, if the taxpayer can establish, based
	2593	+	14 on a preponderance of the evidence, both of the
	2594	+	15 following:
	2595	+	16 (a) the person during the same taxable
	2596	+	17 year paid, accrued, or incurred, the
	2597	+	18 intangible expense or cost to a person that is
	2598	+	19 not a related member, and
	2599	+	20 (b) the transaction giving rise to the
	2600	+	21 intangible expense or cost between the
	2601	+	22 taxpayer and the person did not have as a
	2602	+	23 principal purpose the avoidance of Illinois
	2603	+	24 income tax, and is paid pursuant to a contract
	2604	+	25 or agreement that reflects arm's-length terms;
	2605	+	26 or
	2606	+
	2607	+
	2608	+
	2609	+
	2610	+
	2611	+	HB5290 Enrolled - 73 - LRB103 39138 CES 69280 b
	2612	+
	2613	+
	2614	+	HB5290 Enrolled- 74 -LRB103 39138 CES 69280 b HB5290 Enrolled - 74 - LRB103 39138 CES 69280 b
	2615	+	HB5290 Enrolled - 74 - LRB103 39138 CES 69280 b
	2616	+	1 (iii) any item of intangible expense or cost
	2617	+	2 paid, accrued, or incurred, directly or
	2618	+	3 indirectly, from a transaction with a person if
	2619	+	4 the taxpayer establishes by clear and convincing
	2620	+	5 evidence, that the adjustments are unreasonable;
	2621	+	6 or if the taxpayer and the Director agree in
	2622	+	7 writing to the application or use of an
	2623	+	8 alternative method of apportionment under Section
	2624	+	9 304(f);
	2625	+	10 Nothing in this subsection shall preclude the
	2626	+	11 Director from making any other adjustment
	2627	+	12 otherwise allowed under Section 404 of this Act
	2628	+	13 for any tax year beginning after the effective
	2629	+	14 date of this amendment provided such adjustment is
	2630	+	15 made pursuant to regulation adopted by the
	2631	+	16 Department and such regulations provide methods
	2632	+	17 and standards by which the Department will utilize
	2633	+	18 its authority under Section 404 of this Act;
	2634	+	19 (G-14) For taxable years ending on or after
	2635	+	20 December 31, 2008, an amount equal to the amount of
	2636	+	21 insurance premium expenses and costs otherwise allowed
	2637	+	22 as a deduction in computing base income, and that were
	2638	+	23 paid, accrued, or incurred, directly or indirectly, to
	2639	+	24 a person who would be a member of the same unitary
	2640	+	25 business group but for the fact that the person is
	2641	+	26 prohibited under Section 1501(a)(27) from being
	2642	+
	2643	+
	2644	+
	2645	+
	2646	+
	2647	+	HB5290 Enrolled - 74 - LRB103 39138 CES 69280 b
	2648	+
	2649	+
	2650	+	HB5290 Enrolled- 75 -LRB103 39138 CES 69280 b HB5290 Enrolled - 75 - LRB103 39138 CES 69280 b
	2651	+	HB5290 Enrolled - 75 - LRB103 39138 CES 69280 b
	2652	+	1 included in the unitary business group because he or
	2653	+	2 she is ordinarily required to apportion business
	2654	+	3 income under different subsections of Section 304. The
	2655	+	4 addition modification required by this subparagraph
	2656	+	5 shall be reduced to the extent that dividends were
	2657	+	6 included in base income of the unitary group for the
	2658	+	7 same taxable year and received by the taxpayer or by a
	2659	+	8 member of the taxpayer's unitary business group
	2660	+	9 (including amounts included in gross income under
	2661	+	10 Sections 951 through 964 of the Internal Revenue Code
	2662	+	11 and amounts included in gross income under Section 78
	2663	+	12 of the Internal Revenue Code) with respect to the
	2664	+	13 stock of the same person to whom the premiums and costs
	2665	+	14 were directly or indirectly paid, incurred, or
	2666	+	15 accrued. The preceding sentence does not apply to the
	2667	+	16 extent that the same dividends caused a reduction to
	2668	+	17 the addition modification required under Section
	2669	+	18 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
	2670	+	19 Act;
	2671	+	20 (G-15) An amount equal to the credit allowable to
	2672	+	21 the taxpayer under Section 218(a) of this Act,
	2673	+	22 determined without regard to Section 218(c) of this
	2674	+	23 Act;
	2675	+	24 (G-16) For taxable years ending on or after
	2676	+	25 December 31, 2017, an amount equal to the deduction
	2677	+	26 allowed under Section 199 of the Internal Revenue Code
	2678	+
	2679	+
	2680	+
	2681	+
	2682	+
	2683	+	HB5290 Enrolled - 75 - LRB103 39138 CES 69280 b
	2684	+
	2685	+
	2686	+	HB5290 Enrolled- 76 -LRB103 39138 CES 69280 b HB5290 Enrolled - 76 - LRB103 39138 CES 69280 b
	2687	+	HB5290 Enrolled - 76 - LRB103 39138 CES 69280 b
	2688	+	1 for the taxable year;
	2689	+	2 and by deducting from the total so obtained the sum of the
	2690	+	3 following amounts:
	2691	+	4 (H) An amount equal to all amounts included in
	2692	+	5 such total pursuant to the provisions of Sections
	2693	+	6 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
	2694	+	7 of the Internal Revenue Code or included in such total
	2695	+	8 as distributions under the provisions of any
	2696	+	9 retirement or disability plan for employees of any
	2697	+	10 governmental agency or unit, or retirement payments to
	2698	+	11 retired partners, which payments are excluded in
	2699	+	12 computing net earnings from self employment by Section
	2700	+	13 1402 of the Internal Revenue Code and regulations
	2701	+	14 adopted pursuant thereto;
	2702	+	15 (I) The valuation limitation amount;
	2703	+	16 (J) An amount equal to the amount of any tax
	2704	+	17 imposed by this Act which was refunded to the taxpayer
	2705	+	18 and included in such total for the taxable year;
	2706	+	19 (K) An amount equal to all amounts included in
	2707	+	20 taxable income as modified by subparagraphs (A), (B),
	2708	+	21 (C), (D), (E), (F) and (G) which are exempt from
	2709	+	22 taxation by this State either by reason of its
	2710	+	23 statutes or Constitution or by reason of the
	2711	+	24 Constitution, treaties or statutes of the United
	2712	+	25 States; provided that, in the case of any statute of
	2713	+	26 this State that exempts income derived from bonds or
	2714	+
	2715	+
	2716	+
	2717	+
	2718	+
	2719	+	HB5290 Enrolled - 76 - LRB103 39138 CES 69280 b
	2720	+
	2721	+
	2722	+	HB5290 Enrolled- 77 -LRB103 39138 CES 69280 b HB5290 Enrolled - 77 - LRB103 39138 CES 69280 b
	2723	+	HB5290 Enrolled - 77 - LRB103 39138 CES 69280 b
	2724	+	1 other obligations from the tax imposed under this Act,
	2725	+	2 the amount exempted shall be the interest net of bond
	2726	+	3 premium amortization;
	2727	+	4 (L) With the exception of any amounts subtracted
	2728	+	5 under subparagraph (K), an amount equal to the sum of
	2729	+	6 all amounts disallowed as deductions by (i) Sections
	2730	+	7 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
	2731	+	8 and all amounts of expenses allocable to interest and
	2732	+	9 disallowed as deductions by Section 265(a)(1) of the
	2733	+	10 Internal Revenue Code; and (ii) for taxable years
	2734	+	11 ending on or after August 13, 1999, Sections
	2735	+	12 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
	2736	+	13 Internal Revenue Code, plus, (iii) for taxable years
	2737	+	14 ending on or after December 31, 2011, Section
	2738	+	15 45G(e)(3) of the Internal Revenue Code and, for
	2739	+	16 taxable years ending on or after December 31, 2008,
	2740	+	17 any amount included in gross income under Section 87
	2741	+	18 of the Internal Revenue Code; the provisions of this
	2742	+	19 subparagraph are exempt from the provisions of Section
	2743	+	20 250;
	2744	+	21 (M) An amount equal to those dividends included in
	2745	+	22 such total which were paid by a corporation which
	2746	+	23 conducts business operations in a River Edge
	2747	+	24 Redevelopment Zone or zones created under the River
	2748	+	25 Edge Redevelopment Zone Act and conducts substantially
	2749	+	26 all of its operations in a River Edge Redevelopment
	2750	+
	2751	+
	2752	+
	2753	+
	2754	+
	2755	+	HB5290 Enrolled - 77 - LRB103 39138 CES 69280 b
	2756	+
	2757	+
	2758	+	HB5290 Enrolled- 78 -LRB103 39138 CES 69280 b HB5290 Enrolled - 78 - LRB103 39138 CES 69280 b
	2759	+	HB5290 Enrolled - 78 - LRB103 39138 CES 69280 b
	2760	+	1 Zone or zones. This subparagraph (M) is exempt from
	2761	+	2 the provisions of Section 250;
	2762	+	3 (N) An amount equal to any contribution made to a
	2763	+	4 job training project established pursuant to the Tax
	2764	+	5 Increment Allocation Redevelopment Act;
	2765	+	6 (O) An amount equal to those dividends included in
	2766	+	7 such total that were paid by a corporation that
	2767	+	8 conducts business operations in a federally designated
	2768	+	9 Foreign Trade Zone or Sub-Zone and that is designated
	2769	+	10 a High Impact Business located in Illinois; provided
	2770	+	11 that dividends eligible for the deduction provided in
	2771	+	12 subparagraph (M) of paragraph (2) of this subsection
	2772	+	13 shall not be eligible for the deduction provided under
	2773	+	14 this subparagraph (O);
	2774	+	15 (P) An amount equal to the amount of the deduction
	2775	+	16 used to compute the federal income tax credit for
	2776	+	17 restoration of substantial amounts held under claim of
	2777	+	18 right for the taxable year pursuant to Section 1341 of
	2778	+	19 the Internal Revenue Code;
	2779	+	20 (Q) For taxable year 1999 and thereafter, an
	2780	+	21 amount equal to the amount of any (i) distributions,
	2781	+	22 to the extent includible in gross income for federal
	2782	+	23 income tax purposes, made to the taxpayer because of
	2783	+	24 his or her status as a victim of persecution for racial
	2784	+	25 or religious reasons by Nazi Germany or any other Axis
	2785	+	26 regime or as an heir of the victim and (ii) items of
	2786	+
	2787	+
	2788	+
	2789	+
	2790	+
	2791	+	HB5290 Enrolled - 78 - LRB103 39138 CES 69280 b
	2792	+
	2793	+
	2794	+	HB5290 Enrolled- 79 -LRB103 39138 CES 69280 b HB5290 Enrolled - 79 - LRB103 39138 CES 69280 b
	2795	+	HB5290 Enrolled - 79 - LRB103 39138 CES 69280 b
	2796	+	1 income, to the extent includible in gross income for
	2797	+	2 federal income tax purposes, attributable to, derived
	2798	+	3 from or in any way related to assets stolen from,
	2799	+	4 hidden from, or otherwise lost to a victim of
	2800	+	5 persecution for racial or religious reasons by Nazi
	2801	+	6 Germany or any other Axis regime immediately prior to,
	2802	+	7 during, and immediately after World War II, including,
	2803	+	8 but not limited to, interest on the proceeds
	2804	+	9 receivable as insurance under policies issued to a
	2805	+	10 victim of persecution for racial or religious reasons
	2806	+	11 by Nazi Germany or any other Axis regime by European
	2807	+	12 insurance companies immediately prior to and during
	2808	+	13 World War II; provided, however, this subtraction from
	2809	+	14 federal adjusted gross income does not apply to assets
	2810	+	15 acquired with such assets or with the proceeds from
	2811	+	16 the sale of such assets; provided, further, this
	2812	+	17 paragraph shall only apply to a taxpayer who was the
	2813	+	18 first recipient of such assets after their recovery
	2814	+	19 and who is a victim of persecution for racial or
	2815	+	20 religious reasons by Nazi Germany or any other Axis
	2816	+	21 regime or as an heir of the victim. The amount of and
	2817	+	22 the eligibility for any public assistance, benefit, or
	2818	+	23 similar entitlement is not affected by the inclusion
	2819	+	24 of items (i) and (ii) of this paragraph in gross income
	2820	+	25 for federal income tax purposes. This paragraph is
	2821	+	26 exempt from the provisions of Section 250;
	2822	+
	2823	+
	2824	+
	2825	+
	2826	+
	2827	+	HB5290 Enrolled - 79 - LRB103 39138 CES 69280 b
	2828	+
	2829	+
	2830	+	HB5290 Enrolled- 80 -LRB103 39138 CES 69280 b HB5290 Enrolled - 80 - LRB103 39138 CES 69280 b
	2831	+	HB5290 Enrolled - 80 - LRB103 39138 CES 69280 b
	2832	+	1 (R) For taxable years 2001 and thereafter, for the
	2833	+	2 taxable year in which the bonus depreciation deduction
	2834	+	3 is taken on the taxpayer's federal income tax return
	2835	+	4 under subsection (k) of Section 168 of the Internal
	2836	+	5 Revenue Code and for each applicable taxable year
	2837	+	6 thereafter, an amount equal to "x", where:
	2838	+	7 (1) "y" equals the amount of the depreciation
	2839	+	8 deduction taken for the taxable year on the
	2840	+	9 taxpayer's federal income tax return on property
	2841	+	10 for which the bonus depreciation deduction was
	2842	+	11 taken in any year under subsection (k) of Section
	2843	+	12 168 of the Internal Revenue Code, but not
	2844	+	13 including the bonus depreciation deduction;
	2845	+	14 (2) for taxable years ending on or before
	2846	+	15 December 31, 2005, "x" equals "y" multiplied by 30
	2847	+	16 and then divided by 70 (or "y" multiplied by
	2848	+	17 0.429); and
	2849	+	18 (3) for taxable years ending after December
	2850	+	19 31, 2005:
	2851	+	20 (i) for property on which a bonus
	2852	+	21 depreciation deduction of 30% of the adjusted
	2853	+	22 basis was taken, "x" equals "y" multiplied by
	2854	+	23 30 and then divided by 70 (or "y" multiplied
	2855	+	24 by 0.429);
	2856	+	25 (ii) for property on which a bonus
	2857	+	26 depreciation deduction of 50% of the adjusted
	2858	+
	2859	+
	2860	+
	2861	+
	2862	+
	2863	+	HB5290 Enrolled - 80 - LRB103 39138 CES 69280 b
	2864	+
	2865	+
	2866	+	HB5290 Enrolled- 81 -LRB103 39138 CES 69280 b HB5290 Enrolled - 81 - LRB103 39138 CES 69280 b
	2867	+	HB5290 Enrolled - 81 - LRB103 39138 CES 69280 b
	2868	+	1 basis was taken, "x" equals "y" multiplied by
	2869	+	2 1.0;
	2870	+	3 (iii) for property on which a bonus
	2871	+	4 depreciation deduction of 100% of the adjusted
	2872	+	5 basis was taken in a taxable year ending on or
	2873	+	6 after December 31, 2021, "x" equals the
	2874	+	7 depreciation deduction that would be allowed
	2875	+	8 on that property if the taxpayer had made the
	2876	+	9 election under Section 168(k)(7) of the
	2877	+	10 Internal Revenue Code to not claim bonus
	2878	+	11 depreciation on that property; and
	2879	+	12 (iv) for property on which a bonus
	2880	+	13 depreciation deduction of a percentage other
	2881	+	14 than 30%, 50% or 100% of the adjusted basis
	2882	+	15 was taken in a taxable year ending on or after
	2883	+	16 December 31, 2021, "x" equals "y" multiplied
	2884	+	17 by 100 times the percentage bonus depreciation
	2885	+	18 on the property (that is, 100(bonus%)) and
	2886	+	19 then divided by 100 times 1 minus the
	2887	+	20 percentage bonus depreciation on the property
	2888	+	21 (that is, 100(1-bonus%)).
	2889	+	22 The aggregate amount deducted under this
	2890	+	23 subparagraph in all taxable years for any one piece of
	2891	+	24 property may not exceed the amount of the bonus
	2892	+	25 depreciation deduction taken on that property on the
	2893	+	26 taxpayer's federal income tax return under subsection
	2894	+
	2895	+
	2896	+
	2897	+
	2898	+
	2899	+	HB5290 Enrolled - 81 - LRB103 39138 CES 69280 b
	2900	+
	2901	+
	2902	+	HB5290 Enrolled- 82 -LRB103 39138 CES 69280 b HB5290 Enrolled - 82 - LRB103 39138 CES 69280 b
	2903	+	HB5290 Enrolled - 82 - LRB103 39138 CES 69280 b
	2904	+	1 (k) of Section 168 of the Internal Revenue Code. This
	2905	+	2 subparagraph (R) is exempt from the provisions of
	2906	+	3 Section 250;
	2907	+	4 (S) If the taxpayer sells, transfers, abandons, or
	2908	+	5 otherwise disposes of property for which the taxpayer
	2909	+	6 was required in any taxable year to make an addition
	2910	+	7 modification under subparagraph (G-10), then an amount
	2911	+	8 equal to that addition modification.
	2912	+	9 If the taxpayer continues to own property through
	2913	+	10 the last day of the last tax year for which a
	2914	+	11 subtraction is allowed with respect to that property
	2915	+	12 under subparagraph (R) and for which the taxpayer was
	2916	+	13 required in any taxable year to make an addition
	2917	+	14 modification under subparagraph (G-10), then an amount
	2918	+	15 equal to that addition modification.
	2919	+	16 The taxpayer is allowed to take the deduction
	2920	+	17 under this subparagraph only once with respect to any
	2921	+	18 one piece of property.
	2922	+	19 This subparagraph (S) is exempt from the
	2923	+	20 provisions of Section 250;
	2924	+	21 (T) The amount of (i) any interest income (net of
	2925	+	22 the deductions allocable thereto) taken into account
	2926	+	23 for the taxable year with respect to a transaction
	2927	+	24 with a taxpayer that is required to make an addition
	2928	+	25 modification with respect to such transaction under
	2929	+	26 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
	2930	+
	2931	+
	2932	+
	2933	+
	2934	+
	2935	+	HB5290 Enrolled - 82 - LRB103 39138 CES 69280 b
	2936	+
	2937	+
	2938	+	HB5290 Enrolled- 83 -LRB103 39138 CES 69280 b HB5290 Enrolled - 83 - LRB103 39138 CES 69280 b
	2939	+	HB5290 Enrolled - 83 - LRB103 39138 CES 69280 b
	2940	+	1 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
	2941	+	2 the amount of such addition modification and (ii) any
	2942	+	3 income from intangible property (net of the deductions
	2943	+	4 allocable thereto) taken into account for the taxable
	2944	+	5 year with respect to a transaction with a taxpayer
	2945	+	6 that is required to make an addition modification with
	2946	+	7 respect to such transaction under Section
	2947	+	8 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
	2948	+	9 203(d)(2)(D-8), but not to exceed the amount of such
	2949	+	10 addition modification. This subparagraph (T) is exempt
	2950	+	11 from the provisions of Section 250;
	2951	+	12 (U) An amount equal to the interest income taken
	2952	+	13 into account for the taxable year (net of the
	2953	+	14 deductions allocable thereto) with respect to
	2954	+	15 transactions with (i) a foreign person who would be a
	2955	+	16 member of the taxpayer's unitary business group but
	2956	+	17 for the fact the foreign person's business activity
	2957	+	18 outside the United States is 80% or more of that
	2958	+	19 person's total business activity and (ii) for taxable
	2959	+	20 years ending on or after December 31, 2008, to a person
	2960	+	21 who would be a member of the same unitary business
	2961	+	22 group but for the fact that the person is prohibited
	2962	+	23 under Section 1501(a)(27) from being included in the
	2963	+	24 unitary business group because he or she is ordinarily
	2964	+	25 required to apportion business income under different
	2965	+	26 subsections of Section 304, but not to exceed the
	2966	+
	2967	+
	2968	+
	2969	+
	2970	+
	2971	+	HB5290 Enrolled - 83 - LRB103 39138 CES 69280 b
	2972	+
	2973	+
	2974	+	HB5290 Enrolled- 84 -LRB103 39138 CES 69280 b HB5290 Enrolled - 84 - LRB103 39138 CES 69280 b
	2975	+	HB5290 Enrolled - 84 - LRB103 39138 CES 69280 b
	2976	+	1 addition modification required to be made for the same
	2977	+	2 taxable year under Section 203(c)(2)(G-12) for
	2978	+	3 interest paid, accrued, or incurred, directly or
	2979	+	4 indirectly, to the same person. This subparagraph (U)
	2980	+	5 is exempt from the provisions of Section 250;
	2981	+	6 (V) An amount equal to the income from intangible
	2982	+	7 property taken into account for the taxable year (net
	2983	+	8 of the deductions allocable thereto) with respect to
	2984	+	9 transactions with (i) a foreign person who would be a
	2985	+	10 member of the taxpayer's unitary business group but
	2986	+	11 for the fact that the foreign person's business
	2987	+	12 activity outside the United States is 80% or more of
	2988	+	13 that person's total business activity and (ii) for
	2989	+	14 taxable years ending on or after December 31, 2008, to
	2990	+	15 a person who would be a member of the same unitary
	2991	+	16 business group but for the fact that the person is
	2992	+	17 prohibited under Section 1501(a)(27) from being
	2993	+	18 included in the unitary business group because he or
	2994	+	19 she is ordinarily required to apportion business
	2995	+	20 income under different subsections of Section 304, but
	2996	+	21 not to exceed the addition modification required to be
	2997	+	22 made for the same taxable year under Section
	2998	+	23 203(c)(2)(G-13) for intangible expenses and costs
	2999	+	24 paid, accrued, or incurred, directly or indirectly, to
	3000	+	25 the same foreign person. This subparagraph (V) is
	3001	+	26 exempt from the provisions of Section 250;
	3002	+
	3003	+
	3004	+
	3005	+
	3006	+
	3007	+	HB5290 Enrolled - 84 - LRB103 39138 CES 69280 b
	3008	+
	3009	+
	3010	+	HB5290 Enrolled- 85 -LRB103 39138 CES 69280 b HB5290 Enrolled - 85 - LRB103 39138 CES 69280 b
	3011	+	HB5290 Enrolled - 85 - LRB103 39138 CES 69280 b
	3012	+	1 (W) in the case of an estate, an amount equal to
	3013	+	2 all amounts included in such total pursuant to the
	3014	+	3 provisions of Section 111 of the Internal Revenue Code
	3015	+	4 as a recovery of items previously deducted by the
	3016	+	5 decedent from adjusted gross income in the computation
	3017	+	6 of taxable income. This subparagraph (W) is exempt
	3018	+	7 from Section 250;
	3019	+	8 (X) an amount equal to the refund included in such
	3020	+	9 total of any tax deducted for federal income tax
	3021	+	10 purposes, to the extent that deduction was added back
	3022	+	11 under subparagraph (F). This subparagraph (X) is
	3023	+	12 exempt from the provisions of Section 250;
	3024	+	13 (Y) For taxable years ending on or after December
	3025	+	14 31, 2011, in the case of a taxpayer who was required to
	3026	+	15 add back any insurance premiums under Section
	3027	+	16 203(c)(2)(G-14), such taxpayer may elect to subtract
	3028	+	17 that part of a reimbursement received from the
	3029	+	18 insurance company equal to the amount of the expense
	3030	+	19 or loss (including expenses incurred by the insurance
	3031	+	20 company) that would have been taken into account as a
	3032	+	21 deduction for federal income tax purposes if the
	3033	+	22 expense or loss had been uninsured. If a taxpayer
	3034	+	23 makes the election provided for by this subparagraph
	3035	+	24 (Y), the insurer to which the premiums were paid must
	3036	+	25 add back to income the amount subtracted by the
	3037	+	26 taxpayer pursuant to this subparagraph (Y). This
	3038	+
	3039	+
	3040	+
	3041	+
	3042	+
	3043	+	HB5290 Enrolled - 85 - LRB103 39138 CES 69280 b
	3044	+
	3045	+
	3046	+	HB5290 Enrolled- 86 -LRB103 39138 CES 69280 b HB5290 Enrolled - 86 - LRB103 39138 CES 69280 b
	3047	+	HB5290 Enrolled - 86 - LRB103 39138 CES 69280 b
	3048	+	1 subparagraph (Y) is exempt from the provisions of
	3049	+	2 Section 250;
	3050	+	3 (Z) For taxable years beginning after December 31,
	3051	+	4 2018 and before January 1, 2026, the amount of excess
	3052	+	5 business loss of the taxpayer disallowed as a
	3053	+	6 deduction by Section 461(l)(1)(B) of the Internal
	3054	+	7 Revenue Code; and
	3055	+	8 (AA) For taxable years beginning on or after
	3056	+	9 January 1, 2023, for any cannabis establishment
	3057	+	10 operating in this State and licensed under the
	3058	+	11 Cannabis Regulation and Tax Act or any cannabis
	3059	+	12 cultivation center or medical cannabis dispensing
	3060	+	13 organization operating in this State and licensed
	3061	+	14 under the Compassionate Use of Medical Cannabis
	3062	+	15 Program Act, an amount equal to the deductions that
	3063	+	16 were disallowed under Section 280E of the Internal
	3064	+	17 Revenue Code for the taxable year and that would not be
	3065	+	18 added back under this subsection. The provisions of
	3066	+	19 this subparagraph (AA) are exempt from the provisions
	3067	+	20 of Section 250.
	3068	+	21 (3) Limitation. The amount of any modification
	3069	+	22 otherwise required under this subsection shall, under
	3070	+	23 regulations prescribed by the Department, be adjusted by
	3071	+	24 any amounts included therein which were properly paid,
	3072	+	25 credited, or required to be distributed, or permanently
	3073	+	26 set aside for charitable purposes pursuant to Internal
	3074	+
	3075	+
	3076	+
	3077	+
	3078	+
	3079	+	HB5290 Enrolled - 86 - LRB103 39138 CES 69280 b
	3080	+
	3081	+
	3082	+	HB5290 Enrolled- 87 -LRB103 39138 CES 69280 b HB5290 Enrolled - 87 - LRB103 39138 CES 69280 b
	3083	+	HB5290 Enrolled - 87 - LRB103 39138 CES 69280 b
	3084	+	1 Revenue Code Section 642(c) during the taxable year.
	3085	+	2 (d) Partnerships.
	3086	+	3 (1) In general. In the case of a partnership, base
	3087	+	4 income means an amount equal to the taxpayer's taxable
	3088	+	5 income for the taxable year as modified by paragraph (2).
	3089	+	6 (2) Modifications. The taxable income referred to in
	3090	+	7 paragraph (1) shall be modified by adding thereto the sum
	3091	+	8 of the following amounts:
	3092	+	9 (A) An amount equal to all amounts paid or accrued
	3093	+	10 to the taxpayer as interest or dividends during the
	3094	+	11 taxable year to the extent excluded from gross income
	3095	+	12 in the computation of taxable income;
	3096	+	13 (B) An amount equal to the amount of tax imposed by
	3097	+	14 this Act to the extent deducted from gross income for
	3098	+	15 the taxable year;
	3099	+	16 (C) The amount of deductions allowed to the
	3100	+	17 partnership pursuant to Section 707 (c) of the
	3101	+	18 Internal Revenue Code in calculating its taxable
	3102	+	19 income;
	3103	+	20 (D) An amount equal to the amount of the capital
	3104	+	21 gain deduction allowable under the Internal Revenue
	3105	+	22 Code, to the extent deducted from gross income in the
	3106	+	23 computation of taxable income;
	3107	+	24 (D-5) For taxable years 2001 and thereafter, an
	3108	+	25 amount equal to the bonus depreciation deduction taken
	3109	+
	3110	+
	3111	+
	3112	+
	3113	+
	3114	+	HB5290 Enrolled - 87 - LRB103 39138 CES 69280 b
	3115	+
	3116	+
	3117	+	HB5290 Enrolled- 88 -LRB103 39138 CES 69280 b HB5290 Enrolled - 88 - LRB103 39138 CES 69280 b
	3118	+	HB5290 Enrolled - 88 - LRB103 39138 CES 69280 b
	3119	+	1 on the taxpayer's federal income tax return for the
	3120	+	2 taxable year under subsection (k) of Section 168 of
	3121	+	3 the Internal Revenue Code;
	3122	+	4 (D-6) If the taxpayer sells, transfers, abandons,
	3123	+	5 or otherwise disposes of property for which the
	3124	+	6 taxpayer was required in any taxable year to make an
	3125	+	7 addition modification under subparagraph (D-5), then
	3126	+	8 an amount equal to the aggregate amount of the
	3127	+	9 deductions taken in all taxable years under
	3128	+	10 subparagraph (O) with respect to that property.
	3129	+	11 If the taxpayer continues to own property through
	3130	+	12 the last day of the last tax year for which a
	3131	+	13 subtraction is allowed with respect to that property
	3132	+	14 under subparagraph (O) and for which the taxpayer was
	3133	+	15 allowed in any taxable year to make a subtraction
	3134	+	16 modification under subparagraph (O), then an amount
	3135	+	17 equal to that subtraction modification.
	3136	+	18 The taxpayer is required to make the addition
	3137	+	19 modification under this subparagraph only once with
	3138	+	20 respect to any one piece of property;
	3139	+	21 (D-7) An amount equal to the amount otherwise
	3140	+	22 allowed as a deduction in computing base income for
	3141	+	23 interest paid, accrued, or incurred, directly or
	3142	+	24 indirectly, (i) for taxable years ending on or after
	3143	+	25 December 31, 2004, to a foreign person who would be a
	3144	+	26 member of the same unitary business group but for the
	3145	+
	3146	+
	3147	+
	3148	+
	3149	+
	3150	+	HB5290 Enrolled - 88 - LRB103 39138 CES 69280 b
	3151	+
	3152	+
	3153	+	HB5290 Enrolled- 89 -LRB103 39138 CES 69280 b HB5290 Enrolled - 89 - LRB103 39138 CES 69280 b
	3154	+	HB5290 Enrolled - 89 - LRB103 39138 CES 69280 b
	3155	+	1 fact the foreign person's business activity outside
	3156	+	2 the United States is 80% or more of the foreign
	3157	+	3 person's total business activity and (ii) for taxable
	3158	+	4 years ending on or after December 31, 2008, to a person
	3159	+	5 who would be a member of the same unitary business
	3160	+	6 group but for the fact that the person is prohibited
	3161	+	7 under Section 1501(a)(27) from being included in the
	3162	+	8 unitary business group because he or she is ordinarily
	3163	+	9 required to apportion business income under different
	3164	+	10 subsections of Section 304. The addition modification
	3165	+	11 required by this subparagraph shall be reduced to the
	3166	+	12 extent that dividends were included in base income of
	3167	+	13 the unitary group for the same taxable year and
	3168	+	14 received by the taxpayer or by a member of the
	3169	+	15 taxpayer's unitary business group (including amounts
	3170	+	16 included in gross income pursuant to Sections 951
	3171	+	17 through 964 of the Internal Revenue Code and amounts
	3172	+	18 included in gross income under Section 78 of the
	3173	+	19 Internal Revenue Code) with respect to the stock of
	3174	+	20 the same person to whom the interest was paid,
	3175	+	21 accrued, or incurred.
	3176	+	22 This paragraph shall not apply to the following:
	3177	+	23 (i) an item of interest paid, accrued, or
	3178	+	24 incurred, directly or indirectly, to a person who
	3179	+	25 is subject in a foreign country or state, other
	3180	+	26 than a state which requires mandatory unitary
	3181	+
	3182	+
	3183	+
	3184	+
	3185	+
	3186	+	HB5290 Enrolled - 89 - LRB103 39138 CES 69280 b
	3187	+
	3188	+
	3189	+	HB5290 Enrolled- 90 -LRB103 39138 CES 69280 b HB5290 Enrolled - 90 - LRB103 39138 CES 69280 b
	3190	+	HB5290 Enrolled - 90 - LRB103 39138 CES 69280 b
	3191	+	1 reporting, to a tax on or measured by net income
	3192	+	2 with respect to such interest; or
	3193	+	3 (ii) an item of interest paid, accrued, or
	3194	+	4 incurred, directly or indirectly, to a person if
	3195	+	5 the taxpayer can establish, based on a
	3196	+	6 preponderance of the evidence, both of the
	3197	+	7 following:
	3198	+	8 (a) the person, during the same taxable
	3199	+	9 year, paid, accrued, or incurred, the interest
	3200	+	10 to a person that is not a related member, and
	3201	+	11 (b) the transaction giving rise to the
	3202	+	12 interest expense between the taxpayer and the
	3203	+	13 person did not have as a principal purpose the
	3204	+	14 avoidance of Illinois income tax, and is paid
	3205	+	15 pursuant to a contract or agreement that
	3206	+	16 reflects an arm's-length interest rate and
	3207	+	17 terms; or
	3208	+	18 (iii) the taxpayer can establish, based on
	3209	+	19 clear and convincing evidence, that the interest
	3210	+	20 paid, accrued, or incurred relates to a contract
	3211	+	21 or agreement entered into at arm's-length rates
	3212	+	22 and terms and the principal purpose for the
	3213	+	23 payment is not federal or Illinois tax avoidance;
	3214	+	24 or
	3215	+	25 (iv) an item of interest paid, accrued, or
	3216	+	26 incurred, directly or indirectly, to a person if
	3217	+
	3218	+
	3219	+
	3220	+
	3221	+
	3222	+	HB5290 Enrolled - 90 - LRB103 39138 CES 69280 b
	3223	+
	3224	+
	3225	+	HB5290 Enrolled- 91 -LRB103 39138 CES 69280 b HB5290 Enrolled - 91 - LRB103 39138 CES 69280 b
	3226	+	HB5290 Enrolled - 91 - LRB103 39138 CES 69280 b
	3227	+	1 the taxpayer establishes by clear and convincing
	3228	+	2 evidence that the adjustments are unreasonable; or
	3229	+	3 if the taxpayer and the Director agree in writing
	3230	+	4 to the application or use of an alternative method
	3231	+	5 of apportionment under Section 304(f).
	3232	+	6 Nothing in this subsection shall preclude the
	3233	+	7 Director from making any other adjustment
	3234	+	8 otherwise allowed under Section 404 of this Act
	3235	+	9 for any tax year beginning after the effective
	3236	+	10 date of this amendment provided such adjustment is
	3237	+	11 made pursuant to regulation adopted by the
	3238	+	12 Department and such regulations provide methods
	3239	+	13 and standards by which the Department will utilize
	3240	+	14 its authority under Section 404 of this Act; and
	3241	+	15 (D-8) An amount equal to the amount of intangible
	3242	+	16 expenses and costs otherwise allowed as a deduction in
	3243	+	17 computing base income, and that were paid, accrued, or
	3244	+	18 incurred, directly or indirectly, (i) for taxable
	3245	+	19 years ending on or after December 31, 2004, to a
	3246	+	20 foreign person who would be a member of the same
	3247	+	21 unitary business group but for the fact that the
	3248	+	22 foreign person's business activity outside the United
	3249	+	23 States is 80% or more of that person's total business
	3250	+	24 activity and (ii) for taxable years ending on or after
	3251	+	25 December 31, 2008, to a person who would be a member of
	3252	+	26 the same unitary business group but for the fact that
	3253	+
	3254	+
	3255	+
	3256	+
	3257	+
	3258	+	HB5290 Enrolled - 91 - LRB103 39138 CES 69280 b
	3259	+
	3260	+
	3261	+	HB5290 Enrolled- 92 -LRB103 39138 CES 69280 b HB5290 Enrolled - 92 - LRB103 39138 CES 69280 b
	3262	+	HB5290 Enrolled - 92 - LRB103 39138 CES 69280 b
	3263	+	1 the person is prohibited under Section 1501(a)(27)
	3264	+	2 from being included in the unitary business group
	3265	+	3 because he or she is ordinarily required to apportion
	3266	+	4 business income under different subsections of Section
	3267	+	5 304. The addition modification required by this
	3268	+	6 subparagraph shall be reduced to the extent that
	3269	+	7 dividends were included in base income of the unitary
	3270	+	8 group for the same taxable year and received by the
	3271	+	9 taxpayer or by a member of the taxpayer's unitary
	3272	+	10 business group (including amounts included in gross
	3273	+	11 income pursuant to Sections 951 through 964 of the
	3274	+	12 Internal Revenue Code and amounts included in gross
	3275	+	13 income under Section 78 of the Internal Revenue Code)
	3276	+	14 with respect to the stock of the same person to whom
	3277	+	15 the intangible expenses and costs were directly or
	3278	+	16 indirectly paid, incurred or accrued. The preceding
	3279	+	17 sentence shall not apply to the extent that the same
	3280	+	18 dividends caused a reduction to the addition
	3281	+	19 modification required under Section 203(d)(2)(D-7) of
	3282	+	20 this Act. As used in this subparagraph, the term
	3283	+	21 "intangible expenses and costs" includes (1) expenses,
	3284	+	22 losses, and costs for, or related to, the direct or
	3285	+	23 indirect acquisition, use, maintenance or management,
	3286	+	24 ownership, sale, exchange, or any other disposition of
	3287	+	25 intangible property; (2) losses incurred, directly or
	3288	+	26 indirectly, from factoring transactions or discounting
	3289	+
	3290	+
	3291	+
	3292	+
	3293	+
	3294	+	HB5290 Enrolled - 92 - LRB103 39138 CES 69280 b
	3295	+
	3296	+
	3297	+	HB5290 Enrolled- 93 -LRB103 39138 CES 69280 b HB5290 Enrolled - 93 - LRB103 39138 CES 69280 b
	3298	+	HB5290 Enrolled - 93 - LRB103 39138 CES 69280 b
	3299	+	1 transactions; (3) royalty, patent, technical, and
	3300	+	2 copyright fees; (4) licensing fees; and (5) other
	3301	+	3 similar expenses and costs. For purposes of this
	3302	+	4 subparagraph, "intangible property" includes patents,
	3303	+	5 patent applications, trade names, trademarks, service
	3304	+	6 marks, copyrights, mask works, trade secrets, and
	3305	+	7 similar types of intangible assets;
	3306	+	8 This paragraph shall not apply to the following:
	3307	+	9 (i) any item of intangible expenses or costs
	3308	+	10 paid, accrued, or incurred, directly or
	3309	+	11 indirectly, from a transaction with a person who
	3310	+	12 is subject in a foreign country or state, other
	3311	+	13 than a state which requires mandatory unitary
	3312	+	14 reporting, to a tax on or measured by net income
	3313	+	15 with respect to such item; or
	3314	+	16 (ii) any item of intangible expense or cost
	3315	+	17 paid, accrued, or incurred, directly or
	3316	+	18 indirectly, if the taxpayer can establish, based
	3317	+	19 on a preponderance of the evidence, both of the
	3318	+	20 following:
	3319	+	21 (a) the person during the same taxable
	3320	+	22 year paid, accrued, or incurred, the
	3321	+	23 intangible expense or cost to a person that is
	3322	+	24 not a related member, and
	3323	+	25 (b) the transaction giving rise to the
	3324	+	26 intangible expense or cost between the
	3325	+
	3326	+
	3327	+
	3328	+
	3329	+
	3330	+	HB5290 Enrolled - 93 - LRB103 39138 CES 69280 b
	3331	+
	3332	+
	3333	+	HB5290 Enrolled- 94 -LRB103 39138 CES 69280 b HB5290 Enrolled - 94 - LRB103 39138 CES 69280 b
	3334	+	HB5290 Enrolled - 94 - LRB103 39138 CES 69280 b
	3335	+	1 taxpayer and the person did not have as a
	3336	+	2 principal purpose the avoidance of Illinois
	3337	+	3 income tax, and is paid pursuant to a contract
	3338	+	4 or agreement that reflects arm's-length terms;
	3339	+	5 or
	3340	+	6 (iii) any item of intangible expense or cost
	3341	+	7 paid, accrued, or incurred, directly or
	3342	+	8 indirectly, from a transaction with a person if
	3343	+	9 the taxpayer establishes by clear and convincing
	3344	+	10 evidence, that the adjustments are unreasonable;
	3345	+	11 or if the taxpayer and the Director agree in
	3346	+	12 writing to the application or use of an
	3347	+	13 alternative method of apportionment under Section
	3348	+	14 304(f);
	3349	+	15 Nothing in this subsection shall preclude the
	3350	+	16 Director from making any other adjustment
	3351	+	17 otherwise allowed under Section 404 of this Act
	3352	+	18 for any tax year beginning after the effective
	3353	+	19 date of this amendment provided such adjustment is
	3354	+	20 made pursuant to regulation adopted by the
	3355	+	21 Department and such regulations provide methods
	3356	+	22 and standards by which the Department will utilize
	3357	+	23 its authority under Section 404 of this Act;
	3358	+	24 (D-9) For taxable years ending on or after
	3359	+	25 December 31, 2008, an amount equal to the amount of
	3360	+	26 insurance premium expenses and costs otherwise allowed
	3361	+
	3362	+
	3363	+
	3364	+
	3365	+
	3366	+	HB5290 Enrolled - 94 - LRB103 39138 CES 69280 b
	3367	+
	3368	+
	3369	+	HB5290 Enrolled- 95 -LRB103 39138 CES 69280 b HB5290 Enrolled - 95 - LRB103 39138 CES 69280 b
	3370	+	HB5290 Enrolled - 95 - LRB103 39138 CES 69280 b
	3371	+	1 as a deduction in computing base income, and that were
	3372	+	2 paid, accrued, or incurred, directly or indirectly, to
	3373	+	3 a person who would be a member of the same unitary
	3374	+	4 business group but for the fact that the person is
	3375	+	5 prohibited under Section 1501(a)(27) from being
	3376	+	6 included in the unitary business group because he or
	3377	+	7 she is ordinarily required to apportion business
	3378	+	8 income under different subsections of Section 304. The
	3379	+	9 addition modification required by this subparagraph
	3380	+	10 shall be reduced to the extent that dividends were
	3381	+	11 included in base income of the unitary group for the
	3382	+	12 same taxable year and received by the taxpayer or by a
	3383	+	13 member of the taxpayer's unitary business group
	3384	+	14 (including amounts included in gross income under
	3385	+	15 Sections 951 through 964 of the Internal Revenue Code
	3386	+	16 and amounts included in gross income under Section 78
	3387	+	17 of the Internal Revenue Code) with respect to the
	3388	+	18 stock of the same person to whom the premiums and costs
	3389	+	19 were directly or indirectly paid, incurred, or
	3390	+	20 accrued. The preceding sentence does not apply to the
	3391	+	21 extent that the same dividends caused a reduction to
	3392	+	22 the addition modification required under Section
	3393	+	23 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
	3394	+	24 (D-10) An amount equal to the credit allowable to
	3395	+	25 the taxpayer under Section 218(a) of this Act,
	3396	+	26 determined without regard to Section 218(c) of this
	3397	+
	3398	+
	3399	+
	3400	+
	3401	+
	3402	+	HB5290 Enrolled - 95 - LRB103 39138 CES 69280 b
	3403	+
	3404	+
	3405	+	HB5290 Enrolled- 96 -LRB103 39138 CES 69280 b HB5290 Enrolled - 96 - LRB103 39138 CES 69280 b
	3406	+	HB5290 Enrolled - 96 - LRB103 39138 CES 69280 b
	3407	+	1 Act;
	3408	+	2 (D-11) For taxable years ending on or after
	3409	+	3 December 31, 2017, an amount equal to the deduction
	3410	+	4 allowed under Section 199 of the Internal Revenue Code
	3411	+	5 for the taxable year;
	3412	+	6 and by deducting from the total so obtained the following
	3413	+	7 amounts:
	3414	+	8 (E) The valuation limitation amount;
	3415	+	9 (F) An amount equal to the amount of any tax
	3416	+	10 imposed by this Act which was refunded to the taxpayer
	3417	+	11 and included in such total for the taxable year;
	3418	+	12 (G) An amount equal to all amounts included in
	3419	+	13 taxable income as modified by subparagraphs (A), (B),
	3420	+	14 (C) and (D) which are exempt from taxation by this
	3421	+	15 State either by reason of its statutes or Constitution
	3422	+	16 or by reason of the Constitution, treaties or statutes
	3423	+	17 of the United States; provided that, in the case of any
	3424	+	18 statute of this State that exempts income derived from
	3425	+	19 bonds or other obligations from the tax imposed under
	3426	+	20 this Act, the amount exempted shall be the interest
	3427	+	21 net of bond premium amortization;
	3428	+	22 (H) Any income of the partnership which
	3429	+	23 constitutes personal service income as defined in
	3430	+	24 Section 1348(b)(1) of the Internal Revenue Code (as in
	3431	+	25 effect December 31, 1981) or a reasonable allowance
	3432	+	26 for compensation paid or accrued for services rendered
	3433	+
	3434	+
	3435	+
	3436	+
	3437	+
	3438	+	HB5290 Enrolled - 96 - LRB103 39138 CES 69280 b
	3439	+
	3440	+
	3441	+	HB5290 Enrolled- 97 -LRB103 39138 CES 69280 b HB5290 Enrolled - 97 - LRB103 39138 CES 69280 b
	3442	+	HB5290 Enrolled - 97 - LRB103 39138 CES 69280 b
	3443	+	1 by partners to the partnership, whichever is greater;
	3444	+	2 this subparagraph (H) is exempt from the provisions of
	3445	+	3 Section 250;
	3446	+	4 (I) An amount equal to all amounts of income
	3447	+	5 distributable to an entity subject to the Personal
	3448	+	6 Property Tax Replacement Income Tax imposed by
	3449	+	7 subsections (c) and (d) of Section 201 of this Act
	3450	+	8 including amounts distributable to organizations
	3451	+	9 exempt from federal income tax by reason of Section
	3452	+	10 501(a) of the Internal Revenue Code; this subparagraph
	3453	+	11 (I) is exempt from the provisions of Section 250;
	3454	+	12 (J) With the exception of any amounts subtracted
	3455	+	13 under subparagraph (G), an amount equal to the sum of
	3456	+	14 all amounts disallowed as deductions by (i) Sections
	3457	+	15 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
	3458	+	16 and all amounts of expenses allocable to interest and
	3459	+	17 disallowed as deductions by Section 265(a)(1) of the
	3460	+	18 Internal Revenue Code; and (ii) for taxable years
	3461	+	19 ending on or after August 13, 1999, Sections
	3462	+	20 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
	3463	+	21 Internal Revenue Code, plus, (iii) for taxable years
	3464	+	22 ending on or after December 31, 2011, Section
	3465	+	23 45G(e)(3) of the Internal Revenue Code and, for
	3466	+	24 taxable years ending on or after December 31, 2008,
	3467	+	25 any amount included in gross income under Section 87
	3468	+	26 of the Internal Revenue Code; the provisions of this
	3469	+
	3470	+
	3471	+
	3472	+
	3473	+
	3474	+	HB5290 Enrolled - 97 - LRB103 39138 CES 69280 b
	3475	+
	3476	+
	3477	+	HB5290 Enrolled- 98 -LRB103 39138 CES 69280 b HB5290 Enrolled - 98 - LRB103 39138 CES 69280 b
	3478	+	HB5290 Enrolled - 98 - LRB103 39138 CES 69280 b
	3479	+	1 subparagraph are exempt from the provisions of Section
	3480	+	2 250;
	3481	+	3 (K) An amount equal to those dividends included in
	3482	+	4 such total which were paid by a corporation which
	3483	+	5 conducts business operations in a River Edge
	3484	+	6 Redevelopment Zone or zones created under the River
	3485	+	7 Edge Redevelopment Zone Act and conducts substantially
	3486	+	8 all of its operations from a River Edge Redevelopment
	3487	+	9 Zone or zones. This subparagraph (K) is exempt from
	3488	+	10 the provisions of Section 250;
	3489	+	11 (L) An amount equal to any contribution made to a
	3490	+	12 job training project established pursuant to the Real
	3491	+	13 Property Tax Increment Allocation Redevelopment Act;
	3492	+	14 (M) An amount equal to those dividends included in
	3493	+	15 such total that were paid by a corporation that
	3494	+	16 conducts business operations in a federally designated
	3495	+	17 Foreign Trade Zone or Sub-Zone and that is designated
	3496	+	18 a High Impact Business located in Illinois; provided
	3497	+	19 that dividends eligible for the deduction provided in
	3498	+	20 subparagraph (K) of paragraph (2) of this subsection
	3499	+	21 shall not be eligible for the deduction provided under
	3500	+	22 this subparagraph (M);
	3501	+	23 (N) An amount equal to the amount of the deduction
	3502	+	24 used to compute the federal income tax credit for
	3503	+	25 restoration of substantial amounts held under claim of
	3504	+	26 right for the taxable year pursuant to Section 1341 of
	3505	+
	3506	+
	3507	+
	3508	+
	3509	+
	3510	+	HB5290 Enrolled - 98 - LRB103 39138 CES 69280 b
	3511	+
	3512	+
	3513	+	HB5290 Enrolled- 99 -LRB103 39138 CES 69280 b HB5290 Enrolled - 99 - LRB103 39138 CES 69280 b
	3514	+	HB5290 Enrolled - 99 - LRB103 39138 CES 69280 b
	3515	+	1 the Internal Revenue Code;
	3516	+	2 (O) For taxable years 2001 and thereafter, for the
	3517	+	3 taxable year in which the bonus depreciation deduction
	3518	+	4 is taken on the taxpayer's federal income tax return
	3519	+	5 under subsection (k) of Section 168 of the Internal
	3520	+	6 Revenue Code and for each applicable taxable year
	3521	+	7 thereafter, an amount equal to "x", where:
	3522	+	8 (1) "y" equals the amount of the depreciation
	3523	+	9 deduction taken for the taxable year on the
	3524	+	10 taxpayer's federal income tax return on property
	3525	+	11 for which the bonus depreciation deduction was
	3526	+	12 taken in any year under subsection (k) of Section
	3527	+	13 168 of the Internal Revenue Code, but not
	3528	+	14 including the bonus depreciation deduction;
	3529	+	15 (2) for taxable years ending on or before
	3530	+	16 December 31, 2005, "x" equals "y" multiplied by 30
	3531	+	17 and then divided by 70 (or "y" multiplied by
	3532	+	18 0.429); and
	3533	+	19 (3) for taxable years ending after December
	3534	+	20 31, 2005:
	3535	+	21 (i) for property on which a bonus
	3536	+	22 depreciation deduction of 30% of the adjusted
	3537	+	23 basis was taken, "x" equals "y" multiplied by
	3538	+	24 30 and then divided by 70 (or "y" multiplied
	3539	+	25 by 0.429);
	3540	+	26 (ii) for property on which a bonus
	3541	+
	3542	+
	3543	+
	3544	+
	3545	+
	3546	+	HB5290 Enrolled - 99 - LRB103 39138 CES 69280 b
	3547	+
	3548	+
	3549	+	HB5290 Enrolled- 100 -LRB103 39138 CES 69280 b HB5290 Enrolled - 100 - LRB103 39138 CES 69280 b
	3550	+	HB5290 Enrolled - 100 - LRB103 39138 CES 69280 b
	3551	+	1 depreciation deduction of 50% of the adjusted
	3552	+	2 basis was taken, "x" equals "y" multiplied by
	3553	+	3 1.0;
	3554	+	4 (iii) for property on which a bonus
	3555	+	5 depreciation deduction of 100% of the adjusted
	3556	+	6 basis was taken in a taxable year ending on or
	3557	+	7 after December 31, 2021, "x" equals the
	3558	+	8 depreciation deduction that would be allowed
	3559	+	9 on that property if the taxpayer had made the
	3560	+	10 election under Section 168(k)(7) of the
	3561	+	11 Internal Revenue Code to not claim bonus
	3562	+	12 depreciation on that property; and
	3563	+	13 (iv) for property on which a bonus
	3564	+	14 depreciation deduction of a percentage other
	3565	+	15 than 30%, 50% or 100% of the adjusted basis
	3566	+	16 was taken in a taxable year ending on or after
	3567	+	17 December 31, 2021, "x" equals "y" multiplied
	3568	+	18 by 100 times the percentage bonus depreciation
	3569	+	19 on the property (that is, 100(bonus%)) and
	3570	+	20 then divided by 100 times 1 minus the
	3571	+	21 percentage bonus depreciation on the property
	3572	+	22 (that is, 100(1-bonus%)).
	3573	+	23 The aggregate amount deducted under this
	3574	+	24 subparagraph in all taxable years for any one piece of
	3575	+	25 property may not exceed the amount of the bonus
	3576	+	26 depreciation deduction taken on that property on the
	3577	+
	3578	+
	3579	+
	3580	+
	3581	+
	3582	+	HB5290 Enrolled - 100 - LRB103 39138 CES 69280 b
	3583	+
	3584	+
	3585	+	HB5290 Enrolled- 101 -LRB103 39138 CES 69280 b HB5290 Enrolled - 101 - LRB103 39138 CES 69280 b
	3586	+	HB5290 Enrolled - 101 - LRB103 39138 CES 69280 b
	3587	+	1 taxpayer's federal income tax return under subsection
	3588	+	2 (k) of Section 168 of the Internal Revenue Code. This
	3589	+	3 subparagraph (O) is exempt from the provisions of
	3590	+	4 Section 250;
	3591	+	5 (P) If the taxpayer sells, transfers, abandons, or
	3592	+	6 otherwise disposes of property for which the taxpayer
	3593	+	7 was required in any taxable year to make an addition
	3594	+	8 modification under subparagraph (D-5), then an amount
	3595	+	9 equal to that addition modification.
	3596	+	10 If the taxpayer continues to own property through
	3597	+	11 the last day of the last tax year for which a
	3598	+	12 subtraction is allowed with respect to that property
	3599	+	13 under subparagraph (O) and for which the taxpayer was
	3600	+	14 required in any taxable year to make an addition
	3601	+	15 modification under subparagraph (D-5), then an amount
	3602	+	16 equal to that addition modification.
	3603	+	17 The taxpayer is allowed to take the deduction
	3604	+	18 under this subparagraph only once with respect to any
	3605	+	19 one piece of property.
	3606	+	20 This subparagraph (P) is exempt from the
	3607	+	21 provisions of Section 250;
	3608	+	22 (Q) The amount of (i) any interest income (net of
	3609	+	23 the deductions allocable thereto) taken into account
	3610	+	24 for the taxable year with respect to a transaction
	3611	+	25 with a taxpayer that is required to make an addition
	3612	+	26 modification with respect to such transaction under
	3613	+
	3614	+
	3615	+
	3616	+
	3617	+
	3618	+	HB5290 Enrolled - 101 - LRB103 39138 CES 69280 b
	3619	+
	3620	+
	3621	+	HB5290 Enrolled- 102 -LRB103 39138 CES 69280 b HB5290 Enrolled - 102 - LRB103 39138 CES 69280 b
	3622	+	HB5290 Enrolled - 102 - LRB103 39138 CES 69280 b
	3623	+	1 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
	3624	+	2 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
	3625	+	3 the amount of such addition modification and (ii) any
	3626	+	4 income from intangible property (net of the deductions
	3627	+	5 allocable thereto) taken into account for the taxable
	3628	+	6 year with respect to a transaction with a taxpayer
	3629	+	7 that is required to make an addition modification with
	3630	+	8 respect to such transaction under Section
	3631	+	9 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
	3632	+	10 203(d)(2)(D-8), but not to exceed the amount of such
	3633	+	11 addition modification. This subparagraph (Q) is exempt
	3634	+	12 from Section 250;
	3635	+	13 (R) An amount equal to the interest income taken
	3636	+	14 into account for the taxable year (net of the
	3637	+	15 deductions allocable thereto) with respect to
	3638	+	16 transactions with (i) a foreign person who would be a
	3639	+	17 member of the taxpayer's unitary business group but
	3640	+	18 for the fact that the foreign person's business
	3641	+	19 activity outside the United States is 80% or more of
	3642	+	20 that person's total business activity and (ii) for
	3643	+	21 taxable years ending on or after December 31, 2008, to
	3644	+	22 a person who would be a member of the same unitary
	3645	+	23 business group but for the fact that the person is
	3646	+	24 prohibited under Section 1501(a)(27) from being
	3647	+	25 included in the unitary business group because he or
	3648	+	26 she is ordinarily required to apportion business
	3649	+
	3650	+
	3651	+
	3652	+
	3653	+
	3654	+	HB5290 Enrolled - 102 - LRB103 39138 CES 69280 b
	3655	+
	3656	+
	3657	+	HB5290 Enrolled- 103 -LRB103 39138 CES 69280 b HB5290 Enrolled - 103 - LRB103 39138 CES 69280 b
	3658	+	HB5290 Enrolled - 103 - LRB103 39138 CES 69280 b
	3659	+	1 income under different subsections of Section 304, but
	3660	+	2 not to exceed the addition modification required to be
	3661	+	3 made for the same taxable year under Section
	3662	+	4 203(d)(2)(D-7) for interest paid, accrued, or
	3663	+	5 incurred, directly or indirectly, to the same person.
	3664	+	6 This subparagraph (R) is exempt from Section 250;
	3665	+	7 (S) An amount equal to the income from intangible
	3666	+	8 property taken into account for the taxable year (net
	3667	+	9 of the deductions allocable thereto) with respect to
	3668	+	10 transactions with (i) a foreign person who would be a
	3669	+	11 member of the taxpayer's unitary business group but
	3670	+	12 for the fact that the foreign person's business
	3671	+	13 activity outside the United States is 80% or more of
	3672	+	14 that person's total business activity and (ii) for
	3673	+	15 taxable years ending on or after December 31, 2008, to
	3674	+	16 a person who would be a member of the same unitary
	3675	+	17 business group but for the fact that the person is
	3676	+	18 prohibited under Section 1501(a)(27) from being
	3677	+	19 included in the unitary business group because he or
	3678	+	20 she is ordinarily required to apportion business
	3679	+	21 income under different subsections of Section 304, but
	3680	+	22 not to exceed the addition modification required to be
	3681	+	23 made for the same taxable year under Section
	3682	+	24 203(d)(2)(D-8) for intangible expenses and costs paid,
	3683	+	25 accrued, or incurred, directly or indirectly, to the
	3684	+	26 same person. This subparagraph (S) is exempt from
	3685	+
	3686	+
	3687	+
	3688	+
	3689	+
	3690	+	HB5290 Enrolled - 103 - LRB103 39138 CES 69280 b
	3691	+
	3692	+
	3693	+	HB5290 Enrolled- 104 -LRB103 39138 CES 69280 b HB5290 Enrolled - 104 - LRB103 39138 CES 69280 b
	3694	+	HB5290 Enrolled - 104 - LRB103 39138 CES 69280 b
	3695	+	1 Section 250;
	3696	+	2 (T) For taxable years ending on or after December
	3697	+	3 31, 2011, in the case of a taxpayer who was required to
	3698	+	4 add back any insurance premiums under Section
	3699	+	5 203(d)(2)(D-9), such taxpayer may elect to subtract
	3700	+	6 that part of a reimbursement received from the
	3701	+	7 insurance company equal to the amount of the expense
	3702	+	8 or loss (including expenses incurred by the insurance
	3703	+	9 company) that would have been taken into account as a
	3704	+	10 deduction for federal income tax purposes if the
	3705	+	11 expense or loss had been uninsured. If a taxpayer
	3706	+	12 makes the election provided for by this subparagraph
	3707	+	13 (T), the insurer to which the premiums were paid must
	3708	+	14 add back to income the amount subtracted by the
	3709	+	15 taxpayer pursuant to this subparagraph (T). This
	3710	+	16 subparagraph (T) is exempt from the provisions of
	3711	+	17 Section 250; and
	3712	+	18 (U) For taxable years beginning on or after
	3713	+	19 January 1, 2023, for any cannabis establishment
	3714	+	20 operating in this State and licensed under the
	3715	+	21 Cannabis Regulation and Tax Act or any cannabis
	3716	+	22 cultivation center or medical cannabis dispensing
	3717	+	23 organization operating in this State and licensed
	3718	+	24 under the Compassionate Use of Medical Cannabis
	3719	+	25 Program Act, an amount equal to the deductions that
	3720	+	26 were disallowed under Section 280E of the Internal
	3721	+
	3722	+
	3723	+
	3724	+
	3725	+
	3726	+	HB5290 Enrolled - 104 - LRB103 39138 CES 69280 b
	3727	+
	3728	+
	3729	+	HB5290 Enrolled- 105 -LRB103 39138 CES 69280 b HB5290 Enrolled - 105 - LRB103 39138 CES 69280 b
	3730	+	HB5290 Enrolled - 105 - LRB103 39138 CES 69280 b
	3731	+	1 Revenue Code for the taxable year and that would not be
	3732	+	2 added back under this subsection. The provisions of
	3733	+	3 this subparagraph (U) are exempt from the provisions
	3734	+	4 of Section 250.
	3735	+	5 (e) Gross income; adjusted gross income; taxable income.
	3736	+	6 (1) In general. Subject to the provisions of paragraph
	3737	+	7 (2) and subsection (b)(3), for purposes of this Section
	3738	+	8 and Section 803(e), a taxpayer's gross income, adjusted
	3739	+	9 gross income, or taxable income for the taxable year shall
	3740	+	10 mean the amount of gross income, adjusted gross income or
	3741	+	11 taxable income properly reportable for federal income tax
	3742	+	12 purposes for the taxable year under the provisions of the
	3743	+	13 Internal Revenue Code. Taxable income may be less than
	3744	+	14 zero. However, for taxable years ending on or after
	3745	+	15 December 31, 1986, net operating loss carryforwards from
	3746	+	16 taxable years ending prior to December 31, 1986, may not
	3747	+	17 exceed the sum of federal taxable income for the taxable
	3748	+	18 year before net operating loss deduction, plus the excess
	3749	+	19 of addition modifications over subtraction modifications
	3750	+	20 for the taxable year. For taxable years ending prior to
	3751	+	21 December 31, 1986, taxable income may never be an amount
	3752	+	22 in excess of the net operating loss for the taxable year as
	3753	+	23 defined in subsections (c) and (d) of Section 172 of the
	3754	+	24 Internal Revenue Code, provided that when taxable income
	3755	+	25 of a corporation (other than a Subchapter S corporation),
	3756	+
	3757	+
	3758	+
	3759	+
	3760	+
	3761	+	HB5290 Enrolled - 105 - LRB103 39138 CES 69280 b
	3762	+
	3763	+
	3764	+	HB5290 Enrolled- 106 -LRB103 39138 CES 69280 b HB5290 Enrolled - 106 - LRB103 39138 CES 69280 b
	3765	+	HB5290 Enrolled - 106 - LRB103 39138 CES 69280 b
	3766	+	1 trust, or estate is less than zero and addition
	3767	+	2 modifications, other than those provided by subparagraph
	3768	+	3 (E) of paragraph (2) of subsection (b) for corporations or
	3769	+	4 subparagraph (E) of paragraph (2) of subsection (c) for
	3770	+	5 trusts and estates, exceed subtraction modifications, an
	3771	+	6 addition modification must be made under those
	3772	+	7 subparagraphs for any other taxable year to which the
	3773	+	8 taxable income less than zero (net operating loss) is
	3774	+	9 applied under Section 172 of the Internal Revenue Code or
	3775	+	10 under subparagraph (E) of paragraph (2) of this subsection
	3776	+	11 (e) applied in conjunction with Section 172 of the
	3777	+	12 Internal Revenue Code.
	3778	+	13 (2) Special rule. For purposes of paragraph (1) of
	3779	+	14 this subsection, the taxable income properly reportable
	3780	+	15 for federal income tax purposes shall mean:
	3781	+	16 (A) Certain life insurance companies. In the case
	3782	+	17 of a life insurance company subject to the tax imposed
	3783	+	18 by Section 801 of the Internal Revenue Code, life
	3784	+	19 insurance company taxable income, plus the amount of
	3785	+	20 distribution from pre-1984 policyholder surplus
	3786	+	21 accounts as calculated under Section 815a of the
	3787	+	22 Internal Revenue Code;
	3788	+	23 (B) Certain other insurance companies. In the case
	3789	+	24 of mutual insurance companies subject to the tax
	3790	+	25 imposed by Section 831 of the Internal Revenue Code,
	3791	+	26 insurance company taxable income;
	3792	+
	3793	+
	3794	+
	3795	+
	3796	+
	3797	+	HB5290 Enrolled - 106 - LRB103 39138 CES 69280 b
	3798	+
	3799	+
	3800	+	HB5290 Enrolled- 107 -LRB103 39138 CES 69280 b HB5290 Enrolled - 107 - LRB103 39138 CES 69280 b
	3801	+	HB5290 Enrolled - 107 - LRB103 39138 CES 69280 b
	3802	+	1 (C) Regulated investment companies. In the case of
	3803	+	2 a regulated investment company subject to the tax
	3804	+	3 imposed by Section 852 of the Internal Revenue Code,
	3805	+	4 investment company taxable income;
	3806	+	5 (D) Real estate investment trusts. In the case of
	3807	+	6 a real estate investment trust subject to the tax
	3808	+	7 imposed by Section 857 of the Internal Revenue Code,
	3809	+	8 real estate investment trust taxable income;
	3810	+	9 (E) Consolidated corporations. In the case of a
	3811	+	10 corporation which is a member of an affiliated group
	3812	+	11 of corporations filing a consolidated income tax
	3813	+	12 return for the taxable year for federal income tax
	3814	+	13 purposes, taxable income determined as if such
	3815	+	14 corporation had filed a separate return for federal
	3816	+	15 income tax purposes for the taxable year and each
	3817	+	16 preceding taxable year for which it was a member of an
	3818	+	17 affiliated group. For purposes of this subparagraph,
	3819	+	18 the taxpayer's separate taxable income shall be
	3820	+	19 determined as if the election provided by Section
	3821	+	20 243(b)(2) of the Internal Revenue Code had been in
	3822	+	21 effect for all such years;
	3823	+	22 (F) Cooperatives. In the case of a cooperative
	3824	+	23 corporation or association, the taxable income of such
	3825	+	24 organization determined in accordance with the
	3826	+	25 provisions of Section 1381 through 1388 of the
	3827	+	26 Internal Revenue Code, but without regard to the
	3828	+
	3829	+
	3830	+
	3831	+
	3832	+
	3833	+	HB5290 Enrolled - 107 - LRB103 39138 CES 69280 b
	3834	+
	3835	+
	3836	+	HB5290 Enrolled- 108 -LRB103 39138 CES 69280 b HB5290 Enrolled - 108 - LRB103 39138 CES 69280 b
	3837	+	HB5290 Enrolled - 108 - LRB103 39138 CES 69280 b
	3838	+	1 prohibition against offsetting losses from patronage
	3839	+	2 activities against income from nonpatronage
	3840	+	3 activities; except that a cooperative corporation or
	3841	+	4 association may make an election to follow its federal
	3842	+	5 income tax treatment of patronage losses and
	3843	+	6 nonpatronage losses. In the event such election is
	3844	+	7 made, such losses shall be computed and carried over
	3845	+	8 in a manner consistent with subsection (a) of Section
	3846	+	9 207 of this Act and apportioned by the apportionment
	3847	+	10 factor reported by the cooperative on its Illinois
	3848	+	11 income tax return filed for the taxable year in which
	3849	+	12 the losses are incurred. The election shall be
	3850	+	13 effective for all taxable years with original returns
	3851	+	14 due on or after the date of the election. In addition,
	3852	+	15 the cooperative may file an amended return or returns,
	3853	+	16 as allowed under this Act, to provide that the
	3854	+	17 election shall be effective for losses incurred or
	3855	+	18 carried forward for taxable years occurring prior to
	3856	+	19 the date of the election. Once made, the election may
	3857	+	20 only be revoked upon approval of the Director. The
	3858	+	21 Department shall adopt rules setting forth
	3859	+	22 requirements for documenting the elections and any
	3860	+	23 resulting Illinois net loss and the standards to be
	3861	+	24 used by the Director in evaluating requests to revoke
	3862	+	25 elections. Public Act 96-932 is declaratory of
	3863	+	26 existing law;
	3864	+
	3865	+
	3866	+
	3867	+
	3868	+
	3869	+	HB5290 Enrolled - 108 - LRB103 39138 CES 69280 b
	3870	+
	3871	+
	3872	+	HB5290 Enrolled- 109 -LRB103 39138 CES 69280 b HB5290 Enrolled - 109 - LRB103 39138 CES 69280 b
	3873	+	HB5290 Enrolled - 109 - LRB103 39138 CES 69280 b
	3874	+	1 (G) Subchapter S corporations. In the case of: (i)
	3875	+	2 a Subchapter S corporation for which there is in
	3876	+	3 effect an election for the taxable year under Section
	3877	+	4 1362 of the Internal Revenue Code, the taxable income
	3878	+	5 of such corporation determined in accordance with
	3879	+	6 Section 1363(b) of the Internal Revenue Code, except
	3880	+	7 that taxable income shall take into account those
	3881	+	8 items which are required by Section 1363(b)(1) of the
	3882	+	9 Internal Revenue Code to be separately stated; and
	3883	+	10 (ii) a Subchapter S corporation for which there is in
	3884	+	11 effect a federal election to opt out of the provisions
	3885	+	12 of the Subchapter S Revision Act of 1982 and have
	3886	+	13 applied instead the prior federal Subchapter S rules
	3887	+	14 as in effect on July 1, 1982, the taxable income of
	3888	+	15 such corporation determined in accordance with the
	3889	+	16 federal Subchapter S rules as in effect on July 1,
	3890	+	17 1982; and
	3891	+	18 (H) Partnerships. In the case of a partnership,
	3892	+	19 taxable income determined in accordance with Section
	3893	+	20 703 of the Internal Revenue Code, except that taxable
	3894	+	21 income shall take into account those items which are
	3895	+	22 required by Section 703(a)(1) to be separately stated
	3896	+	23 but which would be taken into account by an individual
	3897	+	24 in calculating his taxable income.
	3898	+	25 (3) Recapture of business expenses on disposition of
	3899	+	26 asset or business. Notwithstanding any other law to the
	3900	+
	3901	+
	3902	+
	3903	+
	3904	+
	3905	+	HB5290 Enrolled - 109 - LRB103 39138 CES 69280 b
	3906	+
	3907	+
	3908	+	HB5290 Enrolled- 110 -LRB103 39138 CES 69280 b HB5290 Enrolled - 110 - LRB103 39138 CES 69280 b
	3909	+	HB5290 Enrolled - 110 - LRB103 39138 CES 69280 b
	3910	+	1 contrary, if in prior years income from an asset or
	3911	+	2 business has been classified as business income and in a
	3912	+	3 later year is demonstrated to be non-business income, then
	3913	+	4 all expenses, without limitation, deducted in such later
	3914	+	5 year and in the 2 immediately preceding taxable years
	3915	+	6 related to that asset or business that generated the
	3916	+	7 non-business income shall be added back and recaptured as
	3917	+	8 business income in the year of the disposition of the
	3918	+	9 asset or business. Such amount shall be apportioned to
	3919	+	10 Illinois using the greater of the apportionment fraction
	3920	+	11 computed for the business under Section 304 of this Act
	3921	+	12 for the taxable year or the average of the apportionment
	3922	+	13 fractions computed for the business under Section 304 of
	3923	+	14 this Act for the taxable year and for the 2 immediately
	3924	+	15 preceding taxable years.
	3925	+	16 (f) Valuation limitation amount.
	3926	+	17 (1) In general. The valuation limitation amount
	3927	+	18 referred to in subsections (a)(2)(G), (c)(2)(I) and
	3928	+	19 (d)(2)(E) is an amount equal to:
	3929	+	20 (A) The sum of the pre-August 1, 1969 appreciation
	3930	+	21 amounts (to the extent consisting of gain reportable
	3931	+	22 under the provisions of Section 1245 or 1250 of the
	3932	+	23 Internal Revenue Code) for all property in respect of
	3933	+	24 which such gain was reported for the taxable year;
	3934	+	25 plus
	3935	+
	3936	+
	3937	+
	3938	+
	3939	+
	3940	+	HB5290 Enrolled - 110 - LRB103 39138 CES 69280 b
	3941	+
	3942	+
	3943	+	HB5290 Enrolled- 111 -LRB103 39138 CES 69280 b HB5290 Enrolled - 111 - LRB103 39138 CES 69280 b
	3944	+	HB5290 Enrolled - 111 - LRB103 39138 CES 69280 b
	3945	+	1 (B) The lesser of (i) the sum of the pre-August 1,
	3946	+	2 1969 appreciation amounts (to the extent consisting of
	3947	+	3 capital gain) for all property in respect of which
	3948	+	4 such gain was reported for federal income tax purposes
	3949	+	5 for the taxable year, or (ii) the net capital gain for
	3950	+	6 the taxable year, reduced in either case by any amount
	3951	+	7 of such gain included in the amount determined under
	3952	+	8 subsection (a)(2)(F) or (c)(2)(H).
	3953	+	9 (2) Pre-August 1, 1969 appreciation amount.
	3954	+	10 (A) If the fair market value of property referred
	3955	+	11 to in paragraph (1) was readily ascertainable on
	3956	+	12 August 1, 1969, the pre-August 1, 1969 appreciation
	3957	+	13 amount for such property is the lesser of (i) the
	3958	+	14 excess of such fair market value over the taxpayer's
	3959	+	15 basis (for determining gain) for such property on that
	3960	+	16 date (determined under the Internal Revenue Code as in
	3961	+	17 effect on that date), or (ii) the total gain realized
	3962	+	18 and reportable for federal income tax purposes in
	3963	+	19 respect of the sale, exchange or other disposition of
	3964	+	20 such property.
	3965	+	21 (B) If the fair market value of property referred
	3966	+	22 to in paragraph (1) was not readily ascertainable on
	3967	+	23 August 1, 1969, the pre-August 1, 1969 appreciation
	3968	+	24 amount for such property is that amount which bears
	3969	+	25 the same ratio to the total gain reported in respect of
	3970	+	26 the property for federal income tax purposes for the
	3971	+
	3972	+
	3973	+
	3974	+
	3975	+
	3976	+	HB5290 Enrolled - 111 - LRB103 39138 CES 69280 b
	3977	+
	3978	+
	3979	+	HB5290 Enrolled- 112 -LRB103 39138 CES 69280 b HB5290 Enrolled - 112 - LRB103 39138 CES 69280 b
	3980	+	HB5290 Enrolled - 112 - LRB103 39138 CES 69280 b
	3981	+	1 taxable year, as the number of full calendar months in
	3982	+	2 that part of the taxpayer's holding period for the
	3983	+	3 property ending July 31, 1969 bears to the number of
	3984	+	4 full calendar months in the taxpayer's entire holding
	3985	+	5 period for the property.
	3986	+	6 (C) The Department shall prescribe such
	3987	+	7 regulations as may be necessary to carry out the
	3988	+	8 purposes of this paragraph.
	3989	+	9 (g) Double deductions. Unless specifically provided
	3990	+	10 otherwise, nothing in this Section shall permit the same item
	3991	+	11 to be deducted more than once.
	3992	+	12 (h) Legislative intention. Except as expressly provided by
	3993	+	13 this Section there shall be no modifications or limitations on
	3994	+	14 the amounts of income, gain, loss or deduction taken into
	3995	+	15 account in determining gross income, adjusted gross income or
	3996	+	16 taxable income for federal income tax purposes for the taxable
	3997	+	17 year, or in the amount of such items entering into the
	3998	+	18 computation of base income and net income under this Act for
	3999	+	19 such taxable year, whether in respect of property values as of
	4000	+	20 August 1, 1969 or otherwise.
	4001	+	21 (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
	4002	+	22 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
	4003	+	23 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised
	4004	+	24 9-26-23.)
	4005	+
	4006	+
	4007	+
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	4014	+	HB5290 Enrolled - 113 - LRB103 39138 CES 69280 b
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	4020	+	HB5290 Enrolled - 113 - LRB103 39138 CES 69280 b