Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1313 Compare Versions

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

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1313 Introduced 2/6/2023, by Sen. Meg Loughran Cappel SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 from Ch. 120, par. 2-203 Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately. LRB103 28169 HLH 54548 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1313 Introduced 2/6/2023, by Sen. Meg Loughran Cappel SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/203 from Ch. 120, par. 2-203 Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately. LRB103 28169 HLH 54548 b LRB103 28169 HLH 54548 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1313 Introduced 2/6/2023, by Sen. Meg Loughran Cappel SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/203 from Ch. 120, par. 2-203
4	4	35 ILCS 5/203 from Ch. 120, par. 2-203
5	5	Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately.
6	6	LRB103 28169 HLH 54548 b LRB103 28169 HLH 54548 b
7	7	LRB103 28169 HLH 54548 b
8	8	A BILL FOR
9	9	SB1313LRB103 28169 HLH 54548 b SB1313 LRB103 28169 HLH 54548 b
10	10	SB1313 LRB103 28169 HLH 54548 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Income Tax Act is amended by
15	15	5 changing Section 203 as follows:
16	16	6 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
17	17	7 Sec. 203. Base income defined.
18	18	8 (a) Individuals.
19	19	9 (1) In general. In the case of an individual, base
20	20	10 income means an amount equal to the taxpayer's adjusted
21	21	11 gross income for the taxable year as modified by paragraph
22	22	12 (2).
23	23	13 (2) Modifications. The adjusted gross income referred
24	24	14 to in paragraph (1) shall be modified by adding thereto
25	25	15 the sum of the following amounts:
26	26	16 (A) An amount equal to all amounts paid or accrued
27	27	17 to the taxpayer as interest or dividends during the
28	28	18 taxable year to the extent excluded from gross income
29	29	19 in the computation of adjusted gross income, except
30	30	20 stock dividends of qualified public utilities
31	31	21 described in Section 305(e) of the Internal Revenue
32	32	22 Code;
33	33	23 (B) An amount equal to the amount of tax imposed by
34	34
35	35
36	36
37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1313 Introduced 2/6/2023, by Sen. Meg Loughran Cappel SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/203 from Ch. 120, par. 2-203
39	39	35 ILCS 5/203 from Ch. 120, par. 2-203
40	40	Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately.
41	41	LRB103 28169 HLH 54548 b LRB103 28169 HLH 54548 b
42	42	LRB103 28169 HLH 54548 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	35 ILCS 5/203 from Ch. 120, par. 2-203
50	50
51	51
52	52
53	53	LRB103 28169 HLH 54548 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	SB1313 LRB103 28169 HLH 54548 b
64	64
65	65
66	66	SB1313- 2 -LRB103 28169 HLH 54548 b SB1313 - 2 - LRB103 28169 HLH 54548 b
67	67	SB1313 - 2 - LRB103 28169 HLH 54548 b
68	68	1 this Act to the extent deducted from gross income in
69	69	2 the computation of adjusted gross income for the
70	70	3 taxable year;
71	71	4 (C) An amount equal to the amount received during
72	72	5 the taxable year as a recovery or refund of real
73	73	6 property taxes paid with respect to the taxpayer's
74	74	7 principal residence under the Revenue Act of 1939 and
75	75	8 for which a deduction was previously taken under
76	76	9 subparagraph (L) of this paragraph (2) prior to July
77	77	10 1, 1991, the retrospective application date of Article
78	78	11 4 of Public Act 87-17. In the case of multi-unit or
79	79	12 multi-use structures and farm dwellings, the taxes on
80	80	13 the taxpayer's principal residence shall be that
81	81	14 portion of the total taxes for the entire property
82	82	15 which is attributable to such principal residence;
83	83	16 (D) An amount equal to the amount of the capital
84	84	17 gain deduction allowable under the Internal Revenue
85	85	18 Code, to the extent deducted from gross income in the
86	86	19 computation of adjusted gross income;
87	87	20 (D-5) An amount, to the extent not included in
88	88	21 adjusted gross income, equal to the amount of money
89	89	22 withdrawn by the taxpayer in the taxable year from a
90	90	23 medical care savings account and the interest earned
91	91	24 on the account in the taxable year of a withdrawal
92	92	25 pursuant to subsection (b) of Section 20 of the
93	93	26 Medical Care Savings Account Act or subsection (b) of
94	94
95	95
96	96
97	97
98	98
99	99	SB1313 - 2 - LRB103 28169 HLH 54548 b
100	100
101	101
102	102	SB1313- 3 -LRB103 28169 HLH 54548 b SB1313 - 3 - LRB103 28169 HLH 54548 b
103	103	SB1313 - 3 - LRB103 28169 HLH 54548 b
104	104	1 Section 20 of the Medical Care Savings Account Act of
105	105	2 2000;
106	106	3 (D-10) For taxable years ending after December 31,
107	107	4 1997, an amount equal to any eligible remediation
108	108	5 costs that the individual deducted in computing
109	109	6 adjusted gross income and for which the individual
110	110	7 claims a credit under subsection (l) of Section 201;
111	111	8 (D-15) For taxable years 2001 and thereafter, an
112	112	9 amount equal to the bonus depreciation deduction taken
113	113	10 on the taxpayer's federal income tax return for the
114	114	11 taxable year under subsection (k) of Section 168 of
115	115	12 the Internal Revenue Code;
116	116	13 (D-16) If the taxpayer sells, transfers, abandons,
117	117	14 or otherwise disposes of property for which the
118	118	15 taxpayer was required in any taxable year to make an
119	119	16 addition modification under subparagraph (D-15), then
120	120	17 an amount equal to the aggregate amount of the
121	121	18 deductions taken in all taxable years under
122	122	19 subparagraph (Z) with respect to that property.
123	123	20 If the taxpayer continues to own property through
124	124	21 the last day of the last tax year for which a
125	125	22 subtraction is allowed with respect to that property
126	126	23 under subparagraph (Z) and for which the taxpayer was
127	127	24 allowed in any taxable year to make a subtraction
128	128	25 modification under subparagraph (Z), then an amount
129	129	26 equal to that subtraction modification.
130	130
131	131
132	132
133	133
134	134
135	135	SB1313 - 3 - LRB103 28169 HLH 54548 b
136	136
137	137
138	138	SB1313- 4 -LRB103 28169 HLH 54548 b SB1313 - 4 - LRB103 28169 HLH 54548 b
139	139	SB1313 - 4 - LRB103 28169 HLH 54548 b
140	140	1 The taxpayer is required to make the addition
141	141	2 modification under this subparagraph only once with
142	142	3 respect to any one piece of property;
143	143	4 (D-17) An amount equal to the amount otherwise
144	144	5 allowed as a deduction in computing base income for
145	145	6 interest paid, accrued, or incurred, directly or
146	146	7 indirectly, (i) for taxable years ending on or after
147	147	8 December 31, 2004, to a foreign person who would be a
148	148	9 member of the same unitary business group but for the
149	149	10 fact that foreign person's business activity outside
150	150	11 the United States is 80% or more of the foreign
151	151	12 person's total business activity and (ii) for taxable
152	152	13 years ending on or after December 31, 2008, to a person
153	153	14 who would be a member of the same unitary business
154	154	15 group but for the fact that the person is prohibited
155	155	16 under Section 1501(a)(27) from being included in the
156	156	17 unitary business group because he or she is ordinarily
157	157	18 required to apportion business income under different
158	158	19 subsections of Section 304. The addition modification
159	159	20 required by this subparagraph shall be reduced to the
160	160	21 extent that dividends were included in base income of
161	161	22 the unitary group for the same taxable year and
162	162	23 received by the taxpayer or by a member of the
163	163	24 taxpayer's unitary business group (including amounts
164	164	25 included in gross income under Sections 951 through
165	165	26 964 of the Internal Revenue Code and amounts included
166	166
167	167
168	168
169	169
170	170
171	171	SB1313 - 4 - LRB103 28169 HLH 54548 b
172	172
173	173
174	174	SB1313- 5 -LRB103 28169 HLH 54548 b SB1313 - 5 - LRB103 28169 HLH 54548 b
175	175	SB1313 - 5 - LRB103 28169 HLH 54548 b
176	176	1 in gross income under Section 78 of the Internal
177	177	2 Revenue Code) with respect to the stock of the same
178	178	3 person to whom the interest was paid, accrued, or
179	179	4 incurred.
180	180	5 This paragraph shall not apply to the following:
181	181	6 (i) an item of interest paid, accrued, or
182	182	7 incurred, directly or indirectly, to a person who
183	183	8 is subject in a foreign country or state, other
184	184	9 than a state which requires mandatory unitary
185	185	10 reporting, to a tax on or measured by net income
186	186	11 with respect to such interest; or
187	187	12 (ii) an item of interest paid, accrued, or
188	188	13 incurred, directly or indirectly, to a person if
189	189	14 the taxpayer can establish, based on a
190	190	15 preponderance of the evidence, both of the
191	191	16 following:
192	192	17 (a) the person, during the same taxable
193	193	18 year, paid, accrued, or incurred, the interest
194	194	19 to a person that is not a related member, and
195	195	20 (b) the transaction giving rise to the
196	196	21 interest expense between the taxpayer and the
197	197	22 person did not have as a principal purpose the
198	198	23 avoidance of Illinois income tax, and is paid
199	199	24 pursuant to a contract or agreement that
200	200	25 reflects an arm's-length interest rate and
201	201	26 terms; or
202	202
203	203
204	204
205	205
206	206
207	207	SB1313 - 5 - LRB103 28169 HLH 54548 b
208	208
209	209
210	210	SB1313- 6 -LRB103 28169 HLH 54548 b SB1313 - 6 - LRB103 28169 HLH 54548 b
211	211	SB1313 - 6 - LRB103 28169 HLH 54548 b
212	212	1 (iii) the taxpayer can establish, based on
213	213	2 clear and convincing evidence, that the interest
214	214	3 paid, accrued, or incurred relates to a contract
215	215	4 or agreement entered into at arm's-length rates
216	216	5 and terms and the principal purpose for the
217	217	6 payment is not federal or Illinois tax avoidance;
218	218	7 or
219	219	8 (iv) an item of interest paid, accrued, or
220	220	9 incurred, directly or indirectly, to a person if
221	221	10 the taxpayer establishes by clear and convincing
222	222	11 evidence that the adjustments are unreasonable; or
223	223	12 if the taxpayer and the Director agree in writing
224	224	13 to the application or use of an alternative method
225	225	14 of apportionment under Section 304(f).
226	226	15 Nothing in this subsection shall preclude the
227	227	16 Director from making any other adjustment
228	228	17 otherwise allowed under Section 404 of this Act
229	229	18 for any tax year beginning after the effective
230	230	19 date of this amendment provided such adjustment is
231	231	20 made pursuant to regulation adopted by the
232	232	21 Department and such regulations provide methods
233	233	22 and standards by which the Department will utilize
234	234	23 its authority under Section 404 of this Act;
235	235	24 (D-18) An amount equal to the amount of intangible
236	236	25 expenses and costs otherwise allowed as a deduction in
237	237	26 computing base income, and that were paid, accrued, or
238	238
239	239
240	240
241	241
242	242
243	243	SB1313 - 6 - LRB103 28169 HLH 54548 b
244	244
245	245
246	246	SB1313- 7 -LRB103 28169 HLH 54548 b SB1313 - 7 - LRB103 28169 HLH 54548 b
247	247	SB1313 - 7 - LRB103 28169 HLH 54548 b
248	248	1 incurred, directly or indirectly, (i) for taxable
249	249	2 years ending on or after December 31, 2004, to a
250	250	3 foreign person who would be a member of the same
251	251	4 unitary business group but for the fact that the
252	252	5 foreign person's business activity outside the United
253	253	6 States is 80% or more of that person's total business
254	254	7 activity and (ii) for taxable years ending on or after
255	255	8 December 31, 2008, to a person who would be a member of
256	256	9 the same unitary business group but for the fact that
257	257	10 the person is prohibited under Section 1501(a)(27)
258	258	11 from being included in the unitary business group
259	259	12 because he or she is ordinarily required to apportion
260	260	13 business income under different subsections of Section
261	261	14 304. The addition modification required by this
262	262	15 subparagraph shall be reduced to the extent that
263	263	16 dividends were included in base income of the unitary
264	264	17 group for the same taxable year and received by the
265	265	18 taxpayer or by a member of the taxpayer's unitary
266	266	19 business group (including amounts included in gross
267	267	20 income under Sections 951 through 964 of the Internal
268	268	21 Revenue Code and amounts included in gross income
269	269	22 under Section 78 of the Internal Revenue Code) with
270	270	23 respect to the stock of the same person to whom the
271	271	24 intangible expenses and costs were directly or
272	272	25 indirectly paid, incurred, or accrued. The preceding
273	273	26 sentence does not apply to the extent that the same
274	274
275	275
276	276
277	277
278	278
279	279	SB1313 - 7 - LRB103 28169 HLH 54548 b
280	280
281	281
282	282	SB1313- 8 -LRB103 28169 HLH 54548 b SB1313 - 8 - LRB103 28169 HLH 54548 b
283	283	SB1313 - 8 - LRB103 28169 HLH 54548 b
284	284	1 dividends caused a reduction to the addition
285	285	2 modification required under Section 203(a)(2)(D-17) of
286	286	3 this Act. As used in this subparagraph, the term
287	287	4 "intangible expenses and costs" includes (1) expenses,
288	288	5 losses, and costs for, or related to, the direct or
289	289	6 indirect acquisition, use, maintenance or management,
290	290	7 ownership, sale, exchange, or any other disposition of
291	291	8 intangible property; (2) losses incurred, directly or
292	292	9 indirectly, from factoring transactions or discounting
293	293	10 transactions; (3) royalty, patent, technical, and
294	294	11 copyright fees; (4) licensing fees; and (5) other
295	295	12 similar expenses and costs. For purposes of this
296	296	13 subparagraph, "intangible property" includes patents,
297	297	14 patent applications, trade names, trademarks, service
298	298	15 marks, copyrights, mask works, trade secrets, and
299	299	16 similar types of intangible assets.
300	300	17 This paragraph shall not apply to the following:
301	301	18 (i) any item of intangible expenses or costs
302	302	19 paid, accrued, or incurred, directly or
303	303	20 indirectly, from a transaction with a person who
304	304	21 is subject in a foreign country or state, other
305	305	22 than a state which requires mandatory unitary
306	306	23 reporting, to a tax on or measured by net income
307	307	24 with respect to such item; or
308	308	25 (ii) any item of intangible expense or cost
309	309	26 paid, accrued, or incurred, directly or
310	310
311	311
312	312
313	313
314	314
315	315	SB1313 - 8 - LRB103 28169 HLH 54548 b
316	316
317	317
318	318	SB1313- 9 -LRB103 28169 HLH 54548 b SB1313 - 9 - LRB103 28169 HLH 54548 b
319	319	SB1313 - 9 - LRB103 28169 HLH 54548 b
320	320	1 indirectly, if the taxpayer can establish, based
321	321	2 on a preponderance of the evidence, both of the
322	322	3 following:
323	323	4 (a) the person during the same taxable
324	324	5 year paid, accrued, or incurred, the
325	325	6 intangible expense or cost to a person that is
326	326	7 not a related member, and
327	327	8 (b) the transaction giving rise to the
328	328	9 intangible expense or cost between the
329	329	10 taxpayer and the person did not have as a
330	330	11 principal purpose the avoidance of Illinois
331	331	12 income tax, and is paid pursuant to a contract
332	332	13 or agreement that reflects arm's-length terms;
333	333	14 or
334	334	15 (iii) any item of intangible expense or cost
335	335	16 paid, accrued, or incurred, directly or
336	336	17 indirectly, from a transaction with a person if
337	337	18 the taxpayer establishes by clear and convincing
338	338	19 evidence, that the adjustments are unreasonable;
339	339	20 or if the taxpayer and the Director agree in
340	340	21 writing to the application or use of an
341	341	22 alternative method of apportionment under Section
342	342	23 304(f);
343	343	24 Nothing in this subsection shall preclude the
344	344	25 Director from making any other adjustment
345	345	26 otherwise allowed under Section 404 of this Act
346	346
347	347
348	348
349	349
350	350
351	351	SB1313 - 9 - LRB103 28169 HLH 54548 b
352	352
353	353
354	354	SB1313- 10 -LRB103 28169 HLH 54548 b SB1313 - 10 - LRB103 28169 HLH 54548 b
355	355	SB1313 - 10 - LRB103 28169 HLH 54548 b
356	356	1 for any tax year beginning after the effective
357	357	2 date of this amendment provided such adjustment is
358	358	3 made pursuant to regulation adopted by the
359	359	4 Department and such regulations provide methods
360	360	5 and standards by which the Department will utilize
361	361	6 its authority under Section 404 of this Act;
362	362	7 (D-19) For taxable years ending on or after
363	363	8 December 31, 2008, an amount equal to the amount of
364	364	9 insurance premium expenses and costs otherwise allowed
365	365	10 as a deduction in computing base income, and that were
366	366	11 paid, accrued, or incurred, directly or indirectly, to
367	367	12 a person who would be a member of the same unitary
368	368	13 business group but for the fact that the person is
369	369	14 prohibited under Section 1501(a)(27) from being
370	370	15 included in the unitary business group because he or
371	371	16 she is ordinarily required to apportion business
372	372	17 income under different subsections of Section 304. The
373	373	18 addition modification required by this subparagraph
374	374	19 shall be reduced to the extent that dividends were
375	375	20 included in base income of the unitary group for the
376	376	21 same taxable year and received by the taxpayer or by a
377	377	22 member of the taxpayer's unitary business group
378	378	23 (including amounts included in gross income under
379	379	24 Sections 951 through 964 of the Internal Revenue Code
380	380	25 and amounts included in gross income under Section 78
381	381	26 of the Internal Revenue Code) with respect to the
382	382
383	383
384	384
385	385
386	386
387	387	SB1313 - 10 - LRB103 28169 HLH 54548 b
388	388
389	389
390	390	SB1313- 11 -LRB103 28169 HLH 54548 b SB1313 - 11 - LRB103 28169 HLH 54548 b
391	391	SB1313 - 11 - LRB103 28169 HLH 54548 b
392	392	1 stock of the same person to whom the premiums and costs
393	393	2 were directly or indirectly paid, incurred, or
394	394	3 accrued. The preceding sentence does not apply to the
395	395	4 extent that the same dividends caused a reduction to
396	396	5 the addition modification required under Section
397	397	6 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
398	398	7 Act;
399	399	8 (D-20) For taxable years beginning on or after
400	400	9 January 1, 2002 and ending on or before December 31,
401	401	10 2006, in the case of a distribution from a qualified
402	402	11 tuition program under Section 529 of the Internal
403	403	12 Revenue Code, other than (i) a distribution from a
404	404	13 College Savings Pool created under Section 16.5 of the
405	405	14 State Treasurer Act or (ii) a distribution from the
406	406	15 Illinois Prepaid Tuition Trust Fund, an amount equal
407	407	16 to the amount excluded from gross income under Section
408	408	17 529(c)(3)(B). For taxable years beginning on or after
409	409	18 January 1, 2007, in the case of a distribution from a
410	410	19 qualified tuition program under Section 529 of the
411	411	20 Internal Revenue Code, other than (i) a distribution
412	412	21 from a College Savings Pool created under Section 16.5
413	413	22 of the State Treasurer Act, (ii) a distribution from
414	414	23 the Illinois Prepaid Tuition Trust Fund, or (iii) a
415	415	24 distribution from a qualified tuition program under
416	416	25 Section 529 of the Internal Revenue Code that (I)
417	417	26 adopts and determines that its offering materials
418	418
419	419
420	420
421	421
422	422
423	423	SB1313 - 11 - LRB103 28169 HLH 54548 b
424	424
425	425
426	426	SB1313- 12 -LRB103 28169 HLH 54548 b SB1313 - 12 - LRB103 28169 HLH 54548 b
427	427	SB1313 - 12 - LRB103 28169 HLH 54548 b
428	428	1 comply with the College Savings Plans Network's
429	429	2 disclosure principles and (II) has made reasonable
430	430	3 efforts to inform in-state residents of the existence
431	431	4 of in-state qualified tuition programs by informing
432	432	5 Illinois residents directly and, where applicable, to
433	433	6 inform financial intermediaries distributing the
434	434	7 program to inform in-state residents of the existence
435	435	8 of in-state qualified tuition programs at least
436	436	9 annually, an amount equal to the amount excluded from
437	437	10 gross income under Section 529(c)(3)(B).
438	438	11 For the purposes of this subparagraph (D-20), a
439	439	12 qualified tuition program has made reasonable efforts
440	440	13 if it makes disclosures (which may use the term
441	441	14 "in-state program" or "in-state plan" and need not
442	442	15 specifically refer to Illinois or its qualified
443	443	16 programs by name) (i) directly to prospective
444	444	17 participants in its offering materials or makes a
445	445	18 public disclosure, such as a website posting; and (ii)
446	446	19 where applicable, to intermediaries selling the
447	447	20 out-of-state program in the same manner that the
448	448	21 out-of-state program distributes its offering
449	449	22 materials;
450	450	23 (D-20.5) For taxable years beginning on or after
451	451	24 January 1, 2018, in the case of a distribution from a
452	452	25 qualified ABLE program under Section 529A of the
453	453	26 Internal Revenue Code, other than a distribution from
454	454
455	455
456	456
457	457
458	458
459	459	SB1313 - 12 - LRB103 28169 HLH 54548 b
460	460
461	461
462	462	SB1313- 13 -LRB103 28169 HLH 54548 b SB1313 - 13 - LRB103 28169 HLH 54548 b
463	463	SB1313 - 13 - LRB103 28169 HLH 54548 b
464	464	1 a qualified ABLE program created under Section 16.6 of
465	465	2 the State Treasurer Act, an amount equal to the amount
466	466	3 excluded from gross income under Section 529A(c)(1)(B)
467	467	4 of the Internal Revenue Code;
468	468	5 (D-21) For taxable years beginning on or after
469	469	6 January 1, 2007, in the case of transfer of moneys from
470	470	7 a qualified tuition program under Section 529 of the
471	471	8 Internal Revenue Code that is administered by the
472	472	9 State to an out-of-state program, an amount equal to
473	473	10 the amount of moneys previously deducted from base
474	474	11 income under subsection (a)(2)(Y) of this Section;
475	475	12 (D-21.5) For taxable years beginning on or after
476	476	13 January 1, 2018, in the case of the transfer of moneys
477	477	14 from a qualified tuition program under Section 529 or
478	478	15 a qualified ABLE program under Section 529A of the
479	479	16 Internal Revenue Code that is administered by this
480	480	17 State to an ABLE account established under an
481	481	18 out-of-state ABLE account program, an amount equal to
482	482	19 the contribution component of the transferred amount
483	483	20 that was previously deducted from base income under
484	484	21 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
485	485	22 Section;
486	486	23 (D-22) For taxable years beginning on or after
487	487	24 January 1, 2009, and prior to January 1, 2018, in the
488	488	25 case of a nonqualified withdrawal or refund of moneys
489	489	26 from a qualified tuition program under Section 529 of
490	490
491	491
492	492
493	493
494	494
495	495	SB1313 - 13 - LRB103 28169 HLH 54548 b
496	496
497	497
498	498	SB1313- 14 -LRB103 28169 HLH 54548 b SB1313 - 14 - LRB103 28169 HLH 54548 b
499	499	SB1313 - 14 - LRB103 28169 HLH 54548 b
500	500	1 the Internal Revenue Code administered by the State
501	501	2 that is not used for qualified expenses at an eligible
502	502	3 education institution, an amount equal to the
503	503	4 contribution component of the nonqualified withdrawal
504	504	5 or refund that was previously deducted from base
505	505	6 income under subsection (a)(2)(y) of this Section,
506	506	7 provided that the withdrawal or refund did not result
507	507	8 from the beneficiary's death or disability. For
508	508	9 taxable years beginning on or after January 1, 2018:
509	509	10 (1) in the case of a nonqualified withdrawal or
510	510	11 refund, as defined under Section 16.5 of the State
511	511	12 Treasurer Act, of moneys from a qualified tuition
512	512	13 program under Section 529 of the Internal Revenue Code
513	513	14 administered by the State, an amount equal to the
514	514	15 contribution component of the nonqualified withdrawal
515	515	16 or refund that was previously deducted from base
516	516	17 income under subsection (a)(2)(Y) of this Section, and
517	517	18 (2) in the case of a nonqualified withdrawal or refund
518	518	19 from a qualified ABLE program under Section 529A of
519	519	20 the Internal Revenue Code administered by the State
520	520	21 that is not used for qualified disability expenses, an
521	521	22 amount equal to the contribution component of the
522	522	23 nonqualified withdrawal or refund that was previously
523	523	24 deducted from base income under subsection (a)(2)(HH)
524	524	25 of this Section;
525	525	26 (D-23) An amount equal to the credit allowable to
526	526
527	527
528	528
529	529
530	530
531	531	SB1313 - 14 - LRB103 28169 HLH 54548 b
532	532
533	533
534	534	SB1313- 15 -LRB103 28169 HLH 54548 b SB1313 - 15 - LRB103 28169 HLH 54548 b
535	535	SB1313 - 15 - LRB103 28169 HLH 54548 b
536	536	1 the taxpayer under Section 218(a) of this Act,
537	537	2 determined without regard to Section 218(c) of this
538	538	3 Act;
539	539	4 (D-24) For taxable years ending on or after
540	540	5 December 31, 2017, an amount equal to the deduction
541	541	6 allowed under Section 199 of the Internal Revenue Code
542	542	7 for the taxable year;
543	543	8 (D-25) In the case of a resident, an amount equal
544	544	9 to the amount of tax for which a credit is allowed
545	545	10 pursuant to Section 201(p)(7) of this Act;
546	546	11 and by deducting from the total so obtained the sum of the
547	547	12 following amounts:
548	548	13 (E) For taxable years ending before December 31,
549	549	14 2001, any amount included in such total in respect of
550	550	15 any compensation (including but not limited to any
551	551	16 compensation paid or accrued to a serviceman while a
552	552	17 prisoner of war or missing in action) paid to a
553	553	18 resident by reason of being on active duty in the Armed
554	554	19 Forces of the United States and in respect of any
555	555	20 compensation paid or accrued to a resident who as a
556	556	21 governmental employee was a prisoner of war or missing
557	557	22 in action, and in respect of any compensation paid to a
558	558	23 resident in 1971 or thereafter for annual training
559	559	24 performed pursuant to Sections 502 and 503, Title 32,
560	560	25 United States Code as a member of the Illinois
561	561	26 National Guard or, beginning with taxable years ending
562	562
563	563
564	564
565	565
566	566
567	567	SB1313 - 15 - LRB103 28169 HLH 54548 b
568	568
569	569
570	570	SB1313- 16 -LRB103 28169 HLH 54548 b SB1313 - 16 - LRB103 28169 HLH 54548 b
571	571	SB1313 - 16 - LRB103 28169 HLH 54548 b
572	572	1 on or after December 31, 2007, the National Guard of
573	573	2 any other state. For taxable years ending on or after
574	574	3 December 31, 2001, any amount included in such total
575	575	4 in respect of any compensation (including but not
576	576	5 limited to any compensation paid or accrued to a
577	577	6 serviceman while a prisoner of war or missing in
578	578	7 action) paid to a resident by reason of being a member
579	579	8 of any component of the Armed Forces of the United
580	580	9 States and in respect of any compensation paid or
581	581	10 accrued to a resident who as a governmental employee
582	582	11 was a prisoner of war or missing in action, and in
583	583	12 respect of any compensation paid to a resident in 2001
584	584	13 or thereafter by reason of being a member of the
585	585	14 Illinois National Guard or, beginning with taxable
586	586	15 years ending on or after December 31, 2007, the
587	587	16 National Guard of any other state. The provisions of
588	588	17 this subparagraph (E) are exempt from the provisions
589	589	18 of Section 250;
590	590	19 (F) An amount equal to all amounts included in
591	591	20 such total pursuant to the provisions of Sections
592	592	21 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
593	593	22 408 of the Internal Revenue Code, or included in such
594	594	23 total as distributions under the provisions of any
595	595	24 retirement or disability plan for employees of any
596	596	25 governmental agency or unit, or retirement payments to
597	597	26 retired partners, which payments are excluded in
598	598
599	599
600	600
601	601
602	602
603	603	SB1313 - 16 - LRB103 28169 HLH 54548 b
604	604
605	605
606	606	SB1313- 17 -LRB103 28169 HLH 54548 b SB1313 - 17 - LRB103 28169 HLH 54548 b
607	607	SB1313 - 17 - LRB103 28169 HLH 54548 b
608	608	1 computing net earnings from self employment by Section
609	609	2 1402 of the Internal Revenue Code and regulations
610	610	3 adopted pursuant thereto;
611	611	4 (G) The valuation limitation amount;
612	612	5 (H) An amount equal to the amount of any tax
613	613	6 imposed by this Act which was refunded to the taxpayer
614	614	7 and included in such total for the taxable year;
615	615	8 (I) An amount equal to all amounts included in
616	616	9 such total pursuant to the provisions of Section 111
617	617	10 of the Internal Revenue Code as a recovery of items
618	618	11 previously deducted from adjusted gross income in the
619	619	12 computation of taxable income;
620	620	13 (J) An amount equal to those dividends included in
621	621	14 such total which were paid by a corporation which
622	622	15 conducts business operations in a River Edge
623	623	16 Redevelopment Zone or zones created under the River
624	624	17 Edge Redevelopment Zone Act, and conducts
625	625	18 substantially all of its operations in a River Edge
626	626	19 Redevelopment Zone or zones. This subparagraph (J) is
627	627	20 exempt from the provisions of Section 250;
628	628	21 (K) An amount equal to those dividends included in
629	629	22 such total that were paid by a corporation that
630	630	23 conducts business operations in a federally designated
631	631	24 Foreign Trade Zone or Sub-Zone and that is designated
632	632	25 a High Impact Business located in Illinois; provided
633	633	26 that dividends eligible for the deduction provided in
634	634
635	635
636	636
637	637
638	638
639	639	SB1313 - 17 - LRB103 28169 HLH 54548 b
640	640
641	641
642	642	SB1313- 18 -LRB103 28169 HLH 54548 b SB1313 - 18 - LRB103 28169 HLH 54548 b
643	643	SB1313 - 18 - LRB103 28169 HLH 54548 b
644	644	1 subparagraph (J) of paragraph (2) of this subsection
645	645	2 shall not be eligible for the deduction provided under
646	646	3 this subparagraph (K);
647	647	4 (L) For taxable years ending after December 31,
648	648	5 1983, an amount equal to all social security benefits
649	649	6 and railroad retirement benefits included in such
650	650	7 total pursuant to Sections 72(r) and 86 of the
651	651	8 Internal Revenue Code;
652	652	9 (M) With the exception of any amounts subtracted
653	653	10 under subparagraph (N), an amount equal to the sum of
654	654	11 all amounts disallowed as deductions by (i) Sections
655	655	12 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
656	656	13 and all amounts of expenses allocable to interest and
657	657	14 disallowed as deductions by Section 265(a)(1) of the
658	658	15 Internal Revenue Code; and (ii) for taxable years
659	659	16 ending on or after August 13, 1999, Sections
660	660	17 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
661	661	18 Internal Revenue Code, plus, for taxable years ending
662	662	19 on or after December 31, 2011, Section 45G(e)(3) of
663	663	20 the Internal Revenue Code and, for taxable years
664	664	21 ending on or after December 31, 2008, any amount
665	665	22 included in gross income under Section 87 of the
666	666	23 Internal Revenue Code; the provisions of this
667	667	24 subparagraph are exempt from the provisions of Section
668	668	25 250;
669	669	26 (N) An amount equal to all amounts included in
670	670
671	671
672	672
673	673
674	674
675	675	SB1313 - 18 - LRB103 28169 HLH 54548 b
676	676
677	677
678	678	SB1313- 19 -LRB103 28169 HLH 54548 b SB1313 - 19 - LRB103 28169 HLH 54548 b
679	679	SB1313 - 19 - LRB103 28169 HLH 54548 b
680	680	1 such total which are exempt from taxation by this
681	681	2 State either by reason of its statutes or Constitution
682	682	3 or by reason of the Constitution, treaties or statutes
683	683	4 of the United States; provided that, in the case of any
684	684	5 statute of this State that exempts income derived from
685	685	6 bonds or other obligations from the tax imposed under
686	686	7 this Act, the amount exempted shall be the interest
687	687	8 net of bond premium amortization;
688	688	9 (O) An amount equal to any contribution made to a
689	689	10 job training project established pursuant to the Tax
690	690	11 Increment Allocation Redevelopment Act;
691	691	12 (P) An amount equal to the amount of the deduction
692	692	13 used to compute the federal income tax credit for
693	693	14 restoration of substantial amounts held under claim of
694	694	15 right for the taxable year pursuant to Section 1341 of
695	695	16 the Internal Revenue Code or of any itemized deduction
696	696	17 taken from adjusted gross income in the computation of
697	697	18 taxable income for restoration of substantial amounts
698	698	19 held under claim of right for the taxable year;
699	699	20 (Q) An amount equal to any amounts included in
700	700	21 such total, received by the taxpayer as an
701	701	22 acceleration in the payment of life, endowment or
702	702	23 annuity benefits in advance of the time they would
703	703	24 otherwise be payable as an indemnity for a terminal
704	704	25 illness;
705	705	26 (R) An amount equal to the amount of any federal or
706	706
707	707
708	708
709	709
710	710
711	711	SB1313 - 19 - LRB103 28169 HLH 54548 b
712	712
713	713
714	714	SB1313- 20 -LRB103 28169 HLH 54548 b SB1313 - 20 - LRB103 28169 HLH 54548 b
715	715	SB1313 - 20 - LRB103 28169 HLH 54548 b
716	716	1 State bonus paid to veterans of the Persian Gulf War;
717	717	2 (S) An amount, to the extent included in adjusted
718	718	3 gross income, equal to the amount of a contribution
719	719	4 made in the taxable year on behalf of the taxpayer to a
720	720	5 medical care savings account established under the
721	721	6 Medical Care Savings Account Act or the Medical Care
722	722	7 Savings Account Act of 2000 to the extent the
723	723	8 contribution is accepted by the account administrator
724	724	9 as provided in that Act;
725	725	10 (T) An amount, to the extent included in adjusted
726	726	11 gross income, equal to the amount of interest earned
727	727	12 in the taxable year on a medical care savings account
728	728	13 established under the Medical Care Savings Account Act
729	729	14 or the Medical Care Savings Account Act of 2000 on
730	730	15 behalf of the taxpayer, other than interest added
731	731	16 pursuant to item (D-5) of this paragraph (2);
732	732	17 (U) For one taxable year beginning on or after
733	733	18 January 1, 1994, an amount equal to the total amount of
734	734	19 tax imposed and paid under subsections (a) and (b) of
735	735	20 Section 201 of this Act on grant amounts received by
736	736	21 the taxpayer under the Nursing Home Grant Assistance
737	737	22 Act during the taxpayer's taxable years 1992 and 1993;
738	738	23 (V) Beginning with tax years ending on or after
739	739	24 December 31, 1995 and ending with tax years ending on
740	740	25 or before December 31, 2004, an amount equal to the
741	741	26 amount paid by a taxpayer who is a self-employed
742	742
743	743
744	744
745	745
746	746
747	747	SB1313 - 20 - LRB103 28169 HLH 54548 b
748	748
749	749
750	750	SB1313- 21 -LRB103 28169 HLH 54548 b SB1313 - 21 - LRB103 28169 HLH 54548 b
751	751	SB1313 - 21 - LRB103 28169 HLH 54548 b
752	752	1 taxpayer, a partner of a partnership, or a shareholder
753	753	2 in a Subchapter S corporation for health insurance or
754	754	3 long-term care insurance for that taxpayer or that
755	755	4 taxpayer's spouse or dependents, to the extent that
756	756	5 the amount paid for that health insurance or long-term
757	757	6 care insurance may be deducted under Section 213 of
758	758	7 the Internal Revenue Code, has not been deducted on
759	759	8 the federal income tax return of the taxpayer, and
760	760	9 does not exceed the taxable income attributable to
761	761	10 that taxpayer's income, self-employment income, or
762	762	11 Subchapter S corporation income; except that no
763	763	12 deduction shall be allowed under this item (V) if the
764	764	13 taxpayer is eligible to participate in any health
765	765	14 insurance or long-term care insurance plan of an
766	766	15 employer of the taxpayer or the taxpayer's spouse. The
767	767	16 amount of the health insurance and long-term care
768	768	17 insurance subtracted under this item (V) shall be
769	769	18 determined by multiplying total health insurance and
770	770	19 long-term care insurance premiums paid by the taxpayer
771	771	20 times a number that represents the fractional
772	772	21 percentage of eligible medical expenses under Section
773	773	22 213 of the Internal Revenue Code of 1986 not actually
774	774	23 deducted on the taxpayer's federal income tax return;
775	775	24 (W) For taxable years beginning on or after
776	776	25 January 1, 1998, all amounts included in the
777	777	26 taxpayer's federal gross income in the taxable year
778	778
779	779
780	780
781	781
782	782
783	783	SB1313 - 21 - LRB103 28169 HLH 54548 b
784	784
785	785
786	786	SB1313- 22 -LRB103 28169 HLH 54548 b SB1313 - 22 - LRB103 28169 HLH 54548 b
787	787	SB1313 - 22 - LRB103 28169 HLH 54548 b
788	788	1 from amounts converted from a regular IRA to a Roth
789	789	2 IRA. This paragraph is exempt from the provisions of
790	790	3 Section 250;
791	791	4 (X) For taxable year 1999 and thereafter, an
792	792	5 amount equal to the amount of any (i) distributions,
793	793	6 to the extent includible in gross income for federal
794	794	7 income tax purposes, made to the taxpayer because of
795	795	8 his or her status as a victim of persecution for racial
796	796	9 or religious reasons by Nazi Germany or any other Axis
797	797	10 regime or as an heir of the victim and (ii) items of
798	798	11 income, to the extent includible in gross income for
799	799	12 federal income tax purposes, attributable to, derived
800	800	13 from or in any way related to assets stolen from,
801	801	14 hidden from, or otherwise lost to a victim of
802	802	15 persecution for racial or religious reasons by Nazi
803	803	16 Germany or any other Axis regime immediately prior to,
804	804	17 during, and immediately after World War II, including,
805	805	18 but not limited to, interest on the proceeds
806	806	19 receivable as insurance under policies issued to a
807	807	20 victim of persecution for racial or religious reasons
808	808	21 by Nazi Germany or any other Axis regime by European
809	809	22 insurance companies immediately prior to and during
810	810	23 World War II; provided, however, this subtraction from
811	811	24 federal adjusted gross income does not apply to assets
812	812	25 acquired with such assets or with the proceeds from
813	813	26 the sale of such assets; provided, further, this
814	814
815	815
816	816
817	817
818	818
819	819	SB1313 - 22 - LRB103 28169 HLH 54548 b
820	820
821	821
822	822	SB1313- 23 -LRB103 28169 HLH 54548 b SB1313 - 23 - LRB103 28169 HLH 54548 b
823	823	SB1313 - 23 - LRB103 28169 HLH 54548 b
824	824	1 paragraph shall only apply to a taxpayer who was the
825	825	2 first recipient of such assets after their recovery
826	826	3 and who is a victim of persecution for racial or
827	827	4 religious reasons by Nazi Germany or any other Axis
828	828	5 regime or as an heir of the victim. The amount of and
829	829	6 the eligibility for any public assistance, benefit, or
830	830	7 similar entitlement is not affected by the inclusion
831	831	8 of items (i) and (ii) of this paragraph in gross income
832	832	9 for federal income tax purposes. This paragraph is
833	833	10 exempt from the provisions of Section 250;
834	834	11 (Y) For taxable years beginning on or after
835	835	12 January 1, 2002 and ending on or before December 31,
836	836	13 2004, moneys contributed in the taxable year to a
837	837	14 College Savings Pool account under Section 16.5 of the
838	838	15 State Treasurer Act, except that amounts excluded from
839	839	16 gross income under Section 529(c)(3)(C)(i) of the
840	840	17 Internal Revenue Code shall not be considered moneys
841	841	18 contributed under this subparagraph (Y). For taxable
842	842	19 years beginning on or after January 1, 2005, a maximum
843	843	20 of $10,000 contributed in the taxable year to (i) a
844	844	21 College Savings Pool account under Section 16.5 of the
845	845	22 State Treasurer Act or (ii) the Illinois Prepaid
846	846	23 Tuition Trust Fund, except that amounts excluded from
847	847	24 gross income under Section 529(c)(3)(C)(i) of the
848	848	25 Internal Revenue Code shall not be considered moneys
849	849	26 contributed under this subparagraph (Y). For purposes
850	850
851	851
852	852
853	853
854	854
855	855	SB1313 - 23 - LRB103 28169 HLH 54548 b
856	856
857	857
858	858	SB1313- 24 -LRB103 28169 HLH 54548 b SB1313 - 24 - LRB103 28169 HLH 54548 b
859	859	SB1313 - 24 - LRB103 28169 HLH 54548 b
860	860	1 of this subparagraph, contributions made by an
861	861	2 employer on behalf of an employee, or matching
862	862	3 contributions made by an employee, shall be treated as
863	863	4 made by the employee. This subparagraph (Y) is exempt
864	864	5 from the provisions of Section 250;
865	865	6 (Z) For taxable years 2001 and thereafter, for the
866	866	7 taxable year in which the bonus depreciation deduction
867	867	8 is taken on the taxpayer's federal income tax return
868	868	9 under subsection (k) of Section 168 of the Internal
869	869	10 Revenue Code and for each applicable taxable year
870	870	11 thereafter, an amount equal to "x", where:
871	871	12 (1) "y" equals the amount of the depreciation
872	872	13 deduction taken for the taxable year on the
873	873	14 taxpayer's federal income tax return on property
874	874	15 for which the bonus depreciation deduction was
875	875	16 taken in any year under subsection (k) of Section
876	876	17 168 of the Internal Revenue Code, but not
877	877	18 including the bonus depreciation deduction;
878	878	19 (2) for taxable years ending on or before
879	879	20 December 31, 2005, "x" equals "y" multiplied by 30
880	880	21 and then divided by 70 (or "y" multiplied by
881	881	22 0.429); and
882	882	23 (3) for taxable years ending after December
883	883	24 31, 2005:
884	884	25 (i) for property on which a bonus
885	885	26 depreciation deduction of 30% of the adjusted
886	886
887	887
888	888
889	889
890	890
891	891	SB1313 - 24 - LRB103 28169 HLH 54548 b
892	892
893	893
894	894	SB1313- 25 -LRB103 28169 HLH 54548 b SB1313 - 25 - LRB103 28169 HLH 54548 b
895	895	SB1313 - 25 - LRB103 28169 HLH 54548 b
896	896	1 basis was taken, "x" equals "y" multiplied by
897	897	2 30 and then divided by 70 (or "y" multiplied
898	898	3 by 0.429);
899	899	4 (ii) for property on which a bonus
900	900	5 depreciation deduction of 50% of the adjusted
901	901	6 basis was taken, "x" equals "y" multiplied by
902	902	7 1.0;
903	903	8 (iii) for property on which a bonus
904	904	9 depreciation deduction of 100% of the adjusted
905	905	10 basis was taken in a taxable year ending on or
906	906	11 after December 31, 2021, "x" equals the
907	907	12 depreciation deduction that would be allowed
908	908	13 on that property if the taxpayer had made the
909	909	14 election under Section 168(k)(7) of the
910	910	15 Internal Revenue Code to not claim bonus
911	911	16 depreciation on that property; and
912	912	17 (iv) for property on which a bonus
913	913	18 depreciation deduction of a percentage other
914	914	19 than 30%, 50% or 100% of the adjusted basis
915	915	20 was taken in a taxable year ending on or after
916	916	21 December 31, 2021, "x" equals "y" multiplied
917	917	22 by 100 times the percentage bonus depreciation
918	918	23 on the property (that is, 100(bonus%)) and
919	919	24 then divided by 100 times 1 minus the
920	920	25 percentage bonus depreciation on the property
921	921	26 (that is, 100(1bonus%)).
922	922
923	923
924	924
925	925
926	926
927	927	SB1313 - 25 - LRB103 28169 HLH 54548 b
928	928
929	929
930	930	SB1313- 26 -LRB103 28169 HLH 54548 b SB1313 - 26 - LRB103 28169 HLH 54548 b
931	931	SB1313 - 26 - LRB103 28169 HLH 54548 b
932	932	1 The aggregate amount deducted under this
933	933	2 subparagraph in all taxable years for any one piece of
934	934	3 property may not exceed the amount of the bonus
935	935	4 depreciation deduction taken on that property on the
936	936	5 taxpayer's federal income tax return under subsection
937	937	6 (k) of Section 168 of the Internal Revenue Code. This
938	938	7 subparagraph (Z) is exempt from the provisions of
939	939	8 Section 250;
940	940	9 (AA) If the taxpayer sells, transfers, abandons,
941	941	10 or otherwise disposes of property for which the
942	942	11 taxpayer was required in any taxable year to make an
943	943	12 addition modification under subparagraph (D-15), then
944	944	13 an amount equal to that addition modification.
945	945	14 If the taxpayer continues to own property through
946	946	15 the last day of the last tax year for which a
947	947	16 subtraction is allowed with respect to that property
948	948	17 under subparagraph (Z) and for which the taxpayer was
949	949	18 required in any taxable year to make an addition
950	950	19 modification under subparagraph (D-15), then an amount
951	951	20 equal to that addition modification.
952	952	21 The taxpayer is allowed to take the deduction
953	953	22 under this subparagraph only once with respect to any
954	954	23 one piece of property.
955	955	24 This subparagraph (AA) is exempt from the
956	956	25 provisions of Section 250;
957	957	26 (BB) Any amount included in adjusted gross income,
958	958
959	959
960	960
961	961
962	962
963	963	SB1313 - 26 - LRB103 28169 HLH 54548 b
964	964
965	965
966	966	SB1313- 27 -LRB103 28169 HLH 54548 b SB1313 - 27 - LRB103 28169 HLH 54548 b
967	967	SB1313 - 27 - LRB103 28169 HLH 54548 b
968	968	1 other than salary, received by a driver in a
969	969	2 ridesharing arrangement using a motor vehicle;
970	970	3 (CC) The amount of (i) any interest income (net of
971	971	4 the deductions allocable thereto) taken into account
972	972	5 for the taxable year with respect to a transaction
973	973	6 with a taxpayer that is required to make an addition
974	974	7 modification with respect to such transaction under
975	975	8 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
976	976	9 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
977	977	10 the amount of that addition modification, and (ii) any
978	978	11 income from intangible property (net of the deductions
979	979	12 allocable thereto) taken into account for the taxable
980	980	13 year with respect to a transaction with a taxpayer
981	981	14 that is required to make an addition modification with
982	982	15 respect to such transaction under Section
983	983	16 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
984	984	17 203(d)(2)(D-8), but not to exceed the amount of that
985	985	18 addition modification. This subparagraph (CC) is
986	986	19 exempt from the provisions of Section 250;
987	987	20 (DD) An amount equal to the interest income taken
988	988	21 into account for the taxable year (net of the
989	989	22 deductions allocable thereto) with respect to
990	990	23 transactions with (i) a foreign person who would be a
991	991	24 member of the taxpayer's unitary business group but
992	992	25 for the fact that the foreign person's business
993	993	26 activity outside the United States is 80% or more of
994	994
995	995
996	996
997	997
998	998
999	999	SB1313 - 27 - LRB103 28169 HLH 54548 b
1000	1000
1001	1001
1002	1002	SB1313- 28 -LRB103 28169 HLH 54548 b SB1313 - 28 - LRB103 28169 HLH 54548 b
1003	1003	SB1313 - 28 - LRB103 28169 HLH 54548 b
1004	1004	1 that person's total business activity and (ii) for
1005	1005	2 taxable years ending on or after December 31, 2008, to
1006	1006	3 a person who would be a member of the same unitary
1007	1007	4 business group but for the fact that the person is
1008	1008	5 prohibited under Section 1501(a)(27) from being
1009	1009	6 included in the unitary business group because he or
1010	1010	7 she is ordinarily required to apportion business
1011	1011	8 income under different subsections of Section 304, but
1012	1012	9 not to exceed the addition modification required to be
1013	1013	10 made for the same taxable year under Section
1014	1014	11 203(a)(2)(D-17) for interest paid, accrued, or
1015	1015	12 incurred, directly or indirectly, to the same person.
1016	1016	13 This subparagraph (DD) is exempt from the provisions
1017	1017	14 of Section 250;
1018	1018	15 (EE) An amount equal to the income from intangible
1019	1019	16 property taken into account for the taxable year (net
1020	1020	17 of the deductions allocable thereto) with respect to
1021	1021	18 transactions with (i) a foreign person who would be a
1022	1022	19 member of the taxpayer's unitary business group but
1023	1023	20 for the fact that the foreign person's business
1024	1024	21 activity outside the United States is 80% or more of
1025	1025	22 that person's total business activity and (ii) for
1026	1026	23 taxable years ending on or after December 31, 2008, to
1027	1027	24 a person who would be a member of the same unitary
1028	1028	25 business group but for the fact that the person is
1029	1029	26 prohibited under Section 1501(a)(27) from being
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035	SB1313 - 28 - LRB103 28169 HLH 54548 b
1036	1036
1037	1037
1038	1038	SB1313- 29 -LRB103 28169 HLH 54548 b SB1313 - 29 - LRB103 28169 HLH 54548 b
1039	1039	SB1313 - 29 - LRB103 28169 HLH 54548 b
1040	1040	1 included in the unitary business group because he or
1041	1041	2 she is ordinarily required to apportion business
1042	1042	3 income under different subsections of Section 304, but
1043	1043	4 not to exceed the addition modification required to be
1044	1044	5 made for the same taxable year under Section
1045	1045	6 203(a)(2)(D-18) for intangible expenses and costs
1046	1046	7 paid, accrued, or incurred, directly or indirectly, to
1047	1047	8 the same foreign person. This subparagraph (EE) is
1048	1048	9 exempt from the provisions of Section 250;
1049	1049	10 (FF) An amount equal to any amount awarded to the
1050	1050	11 taxpayer during the taxable year by the Court of
1051	1051	12 Claims under subsection (c) of Section 8 of the Court
1052	1052	13 of Claims Act for time unjustly served in a State
1053	1053	14 prison. This subparagraph (FF) is exempt from the
1054	1054	15 provisions of Section 250;
1055	1055	16 (GG) For taxable years ending on or after December
1056	1056	17 31, 2011, in the case of a taxpayer who was required to
1057	1057	18 add back any insurance premiums under Section
1058	1058	19 203(a)(2)(D-19), such taxpayer may elect to subtract
1059	1059	20 that part of a reimbursement received from the
1060	1060	21 insurance company equal to the amount of the expense
1061	1061	22 or loss (including expenses incurred by the insurance
1062	1062	23 company) that would have been taken into account as a
1063	1063	24 deduction for federal income tax purposes if the
1064	1064	25 expense or loss had been uninsured. If a taxpayer
1065	1065	26 makes the election provided for by this subparagraph
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071	SB1313 - 29 - LRB103 28169 HLH 54548 b
1072	1072
1073	1073
1074	1074	SB1313- 30 -LRB103 28169 HLH 54548 b SB1313 - 30 - LRB103 28169 HLH 54548 b
1075	1075	SB1313 - 30 - LRB103 28169 HLH 54548 b
1076	1076	1 (GG), the insurer to which the premiums were paid must
1077	1077	2 add back to income the amount subtracted by the
1078	1078	3 taxpayer pursuant to this subparagraph (GG). This
1079	1079	4 subparagraph (GG) is exempt from the provisions of
1080	1080	5 Section 250;
1081	1081	6 (HH) For taxable years beginning on or after
1082	1082	7 January 1, 2018 and prior to January 1, 2028, a maximum
1083	1083	8 of $10,000 contributed in the taxable year to a
1084	1084	9 qualified ABLE account under Section 16.6 of the State
1085	1085	10 Treasurer Act, except that amounts excluded from gross
1086	1086	11 income under Section 529(c)(3)(C)(i) or Section
1087	1087	12 529A(c)(1)(C) of the Internal Revenue Code shall not
1088	1088	13 be considered moneys contributed under this
1089	1089	14 subparagraph (HH). For purposes of this subparagraph
1090	1090	15 (HH), contributions made by an employer on behalf of
1091	1091	16 an employee, or matching contributions made by an
1092	1092	17 employee, shall be treated as made by the employee;
1093	1093	18 and
1094	1094	19 (II) For taxable years that begin on or after
1095	1095	20 January 1, 2021 and begin before January 1, 2026, the
1096	1096	21 amount that is included in the taxpayer's federal
1097	1097	22 adjusted gross income pursuant to Section 61 of the
1098	1098	23 Internal Revenue Code as discharge of indebtedness
1099	1099	24 attributable to student loan forgiveness and that is
1100	1100	25 not excluded from the taxpayer's federal adjusted
1101	1101	26 gross income pursuant to paragraph (5) of subsection
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107	SB1313 - 30 - LRB103 28169 HLH 54548 b
1108	1108
1109	1109
1110	1110	SB1313- 31 -LRB103 28169 HLH 54548 b SB1313 - 31 - LRB103 28169 HLH 54548 b
1111	1111	SB1313 - 31 - LRB103 28169 HLH 54548 b
1112	1112	1 (f) of Section 108 of the Internal Revenue Code; .
1113	1113	2 (JJ) For taxable years beginning on or after
1114	1114	3 January 1, 2023, any amount paid by the taxpayer's
1115	1115	4 employer on behalf of the taxpayer as part of an
1116	1116	5 educational assistance program, as defined in Section
1117	1117	6 127 of the Internal Revenue Code, regardless of
1118	1118	7 whether those amounts are included in the taxpayer's
1119	1119	8 federal adjusted gross income for the taxable year;
1120	1120	9 the deduction under this subparagraph shall apply only
1121	1121	10 to the first $5,250 of such assistance so furnished to
1122	1122	11 any individual; this subparagraph is exempt from the
1123	1123	12 provisions of Section 250; and
1124	1124	13 (KK) For taxable years beginning on or after
1125	1125	14 January 1, 2023, amounts paid by the taxpayer on
1126	1126	15 behalf of an employee of the taxpayer as part of an
1127	1127	16 educational assistance program, as defined in Section
1128	1128	17 127 of the Internal Revenue Code; the deduction under
1129	1129	18 this subparagraph shall apply only to the first $5,250
1130	1130	19 of such assistance so furnished to any particular
1131	1131	20 individual; this subparagraph is exempt from the
1132	1132	21 provisions of Section 250.
1133	1133	22 (b) Corporations.
1134	1134	23 (1) In general. In the case of a corporation, base
1135	1135	24 income means an amount equal to the taxpayer's taxable
1136	1136	25 income for the taxable year as modified by paragraph (2).
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142	SB1313 - 31 - LRB103 28169 HLH 54548 b
1143	1143
1144	1144
1145	1145	SB1313- 32 -LRB103 28169 HLH 54548 b SB1313 - 32 - LRB103 28169 HLH 54548 b
1146	1146	SB1313 - 32 - LRB103 28169 HLH 54548 b
1147	1147	1 (2) Modifications. The taxable income referred to in
1148	1148	2 paragraph (1) shall be modified by adding thereto the sum
1149	1149	3 of the following amounts:
1150	1150	4 (A) An amount equal to all amounts paid or accrued
1151	1151	5 to the taxpayer as interest and all distributions
1152	1152	6 received from regulated investment companies during
1153	1153	7 the taxable year to the extent excluded from gross
1154	1154	8 income in the computation of taxable income;
1155	1155	9 (B) An amount equal to the amount of tax imposed by
1156	1156	10 this Act to the extent deducted from gross income in
1157	1157	11 the computation of taxable income for the taxable
1158	1158	12 year;
1159	1159	13 (C) In the case of a regulated investment company,
1160	1160	14 an amount equal to the excess of (i) the net long-term
1161	1161	15 capital gain for the taxable year, over (ii) the
1162	1162	16 amount of the capital gain dividends designated as
1163	1163	17 such in accordance with Section 852(b)(3)(C) of the
1164	1164	18 Internal Revenue Code and any amount designated under
1165	1165	19 Section 852(b)(3)(D) of the Internal Revenue Code,
1166	1166	20 attributable to the taxable year (this amendatory Act
1167	1167	21 of 1995 (Public Act 89-89) is declarative of existing
1168	1168	22 law and is not a new enactment);
1169	1169	23 (D) The amount of any net operating loss deduction
1170	1170	24 taken in arriving at taxable income, other than a net
1171	1171	25 operating loss carried forward from a taxable year
1172	1172	26 ending prior to December 31, 1986;
1173	1173
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178	SB1313 - 32 - LRB103 28169 HLH 54548 b
1179	1179
1180	1180
1181	1181	SB1313- 33 -LRB103 28169 HLH 54548 b SB1313 - 33 - LRB103 28169 HLH 54548 b
1182	1182	SB1313 - 33 - LRB103 28169 HLH 54548 b
1183	1183	1 (E) For taxable years in which a net operating
1184	1184	2 loss carryback or carryforward from a taxable year
1185	1185	3 ending prior to December 31, 1986 is an element of
1186	1186	4 taxable income under paragraph (1) of subsection (e)
1187	1187	5 or subparagraph (E) of paragraph (2) of subsection
1188	1188	6 (e), the amount by which addition modifications other
1189	1189	7 than those provided by this subparagraph (E) exceeded
1190	1190	8 subtraction modifications in such earlier taxable
1191	1191	9 year, with the following limitations applied in the
1192	1192	10 order that they are listed:
1193	1193	11 (i) the addition modification relating to the
1194	1194	12 net operating loss carried back or forward to the
1195	1195	13 taxable year from any taxable year ending prior to
1196	1196	14 December 31, 1986 shall be reduced by the amount
1197	1197	15 of addition modification under this subparagraph
1198	1198	16 (E) which related to that net operating loss and
1199	1199	17 which was taken into account in calculating the
1200	1200	18 base income of an earlier taxable year, and
1201	1201	19 (ii) the addition modification relating to the
1202	1202	20 net operating loss carried back or forward to the
1203	1203	21 taxable year from any taxable year ending prior to
1204	1204	22 December 31, 1986 shall not exceed the amount of
1205	1205	23 such carryback or carryforward;
1206	1206	24 For taxable years in which there is a net
1207	1207	25 operating loss carryback or carryforward from more
1208	1208	26 than one other taxable year ending prior to December
1209	1209
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214	SB1313 - 33 - LRB103 28169 HLH 54548 b
1215	1215
1216	1216
1217	1217	SB1313- 34 -LRB103 28169 HLH 54548 b SB1313 - 34 - LRB103 28169 HLH 54548 b
1218	1218	SB1313 - 34 - LRB103 28169 HLH 54548 b
1219	1219	1 31, 1986, the addition modification provided in this
1220	1220	2 subparagraph (E) shall be the sum of the amounts
1221	1221	3 computed independently under the preceding provisions
1222	1222	4 of this subparagraph (E) for each such taxable year;
1223	1223	5 (E-5) For taxable years ending after December 31,
1224	1224	6 1997, an amount equal to any eligible remediation
1225	1225	7 costs that the corporation deducted in computing
1226	1226	8 adjusted gross income and for which the corporation
1227	1227	9 claims a credit under subsection (l) of Section 201;
1228	1228	10 (E-10) For taxable years 2001 and thereafter, an
1229	1229	11 amount equal to the bonus depreciation deduction taken
1230	1230	12 on the taxpayer's federal income tax return for the
1231	1231	13 taxable year under subsection (k) of Section 168 of
1232	1232	14 the Internal Revenue Code;
1233	1233	15 (E-11) If the taxpayer sells, transfers, abandons,
1234	1234	16 or otherwise disposes of property for which the
1235	1235	17 taxpayer was required in any taxable year to make an
1236	1236	18 addition modification under subparagraph (E-10), then
1237	1237	19 an amount equal to the aggregate amount of the
1238	1238	20 deductions taken in all taxable years under
1239	1239	21 subparagraph (T) with respect to that property.
1240	1240	22 If the taxpayer continues to own property through
1241	1241	23 the last day of the last tax year for which a
1242	1242	24 subtraction is allowed with respect to that property
1243	1243	25 under subparagraph (T) and for which the taxpayer was
1244	1244	26 allowed in any taxable year to make a subtraction
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250	SB1313 - 34 - LRB103 28169 HLH 54548 b
1251	1251
1252	1252
1253	1253	SB1313- 35 -LRB103 28169 HLH 54548 b SB1313 - 35 - LRB103 28169 HLH 54548 b
1254	1254	SB1313 - 35 - LRB103 28169 HLH 54548 b
1255	1255	1 modification under subparagraph (T), then an amount
1256	1256	2 equal to that subtraction modification.
1257	1257	3 The taxpayer is required to make the addition
1258	1258	4 modification under this subparagraph only once with
1259	1259	5 respect to any one piece of property;
1260	1260	6 (E-12) An amount equal to the amount otherwise
1261	1261	7 allowed as a deduction in computing base income for
1262	1262	8 interest paid, accrued, or incurred, directly or
1263	1263	9 indirectly, (i) for taxable years ending on or after
1264	1264	10 December 31, 2004, to a foreign person who would be a
1265	1265	11 member of the same unitary business group but for the
1266	1266	12 fact the foreign person's business activity outside
1267	1267	13 the United States is 80% or more of the foreign
1268	1268	14 person's total business activity and (ii) for taxable
1269	1269	15 years ending on or after December 31, 2008, to a person
1270	1270	16 who would be a member of the same unitary business
1271	1271	17 group but for the fact that the person is prohibited
1272	1272	18 under Section 1501(a)(27) from being included in the
1273	1273	19 unitary business group because he or she is ordinarily
1274	1274	20 required to apportion business income under different
1275	1275	21 subsections of Section 304. The addition modification
1276	1276	22 required by this subparagraph shall be reduced to the
1277	1277	23 extent that dividends were included in base income of
1278	1278	24 the unitary group for the same taxable year and
1279	1279	25 received by the taxpayer or by a member of the
1280	1280	26 taxpayer's unitary business group (including amounts
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286	SB1313 - 35 - LRB103 28169 HLH 54548 b
1287	1287
1288	1288
1289	1289	SB1313- 36 -LRB103 28169 HLH 54548 b SB1313 - 36 - LRB103 28169 HLH 54548 b
1290	1290	SB1313 - 36 - LRB103 28169 HLH 54548 b
1291	1291	1 included in gross income pursuant to Sections 951
1292	1292	2 through 964 of the Internal Revenue Code and amounts
1293	1293	3 included in gross income under Section 78 of the
1294	1294	4 Internal Revenue Code) with respect to the stock of
1295	1295	5 the same person to whom the interest was paid,
1296	1296	6 accrued, or incurred.
1297	1297	7 This paragraph shall not apply to the following:
1298	1298	8 (i) an item of interest paid, accrued, or
1299	1299	9 incurred, directly or indirectly, to a person who
1300	1300	10 is subject in a foreign country or state, other
1301	1301	11 than a state which requires mandatory unitary
1302	1302	12 reporting, to a tax on or measured by net income
1303	1303	13 with respect to such interest; or
1304	1304	14 (ii) an item of interest paid, accrued, or
1305	1305	15 incurred, directly or indirectly, to a person if
1306	1306	16 the taxpayer can establish, based on a
1307	1307	17 preponderance of the evidence, both of the
1308	1308	18 following:
1309	1309	19 (a) the person, during the same taxable
1310	1310	20 year, paid, accrued, or incurred, the interest
1311	1311	21 to a person that is not a related member, and
1312	1312	22 (b) the transaction giving rise to the
1313	1313	23 interest expense between the taxpayer and the
1314	1314	24 person did not have as a principal purpose the
1315	1315	25 avoidance of Illinois income tax, and is paid
1316	1316	26 pursuant to a contract or agreement that
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322	SB1313 - 36 - LRB103 28169 HLH 54548 b
1323	1323
1324	1324
1325	1325	SB1313- 37 -LRB103 28169 HLH 54548 b SB1313 - 37 - LRB103 28169 HLH 54548 b
1326	1326	SB1313 - 37 - LRB103 28169 HLH 54548 b
1327	1327	1 reflects an arm's-length interest rate and
1328	1328	2 terms; or
1329	1329	3 (iii) the taxpayer can establish, based on
1330	1330	4 clear and convincing evidence, that the interest
1331	1331	5 paid, accrued, or incurred relates to a contract
1332	1332	6 or agreement entered into at arm's-length rates
1333	1333	7 and terms and the principal purpose for the
1334	1334	8 payment is not federal or Illinois tax avoidance;
1335	1335	9 or
1336	1336	10 (iv) an item of interest paid, accrued, or
1337	1337	11 incurred, directly or indirectly, to a person if
1338	1338	12 the taxpayer establishes by clear and convincing
1339	1339	13 evidence that the adjustments are unreasonable; or
1340	1340	14 if the taxpayer and the Director agree in writing
1341	1341	15 to the application or use of an alternative method
1342	1342	16 of apportionment under Section 304(f).
1343	1343	17 Nothing in this subsection shall preclude the
1344	1344	18 Director from making any other adjustment
1345	1345	19 otherwise allowed under Section 404 of this Act
1346	1346	20 for any tax year beginning after the effective
1347	1347	21 date of this amendment provided such adjustment is
1348	1348	22 made pursuant to regulation adopted by the
1349	1349	23 Department and such regulations provide methods
1350	1350	24 and standards by which the Department will utilize
1351	1351	25 its authority under Section 404 of this Act;
1352	1352	26 (E-13) An amount equal to the amount of intangible
1353	1353
1354	1354
1355	1355
1356	1356
1357	1357
1358	1358	SB1313 - 37 - LRB103 28169 HLH 54548 b
1359	1359
1360	1360
1361	1361	SB1313- 38 -LRB103 28169 HLH 54548 b SB1313 - 38 - LRB103 28169 HLH 54548 b
1362	1362	SB1313 - 38 - LRB103 28169 HLH 54548 b
1363	1363	1 expenses and costs otherwise allowed as a deduction in
1364	1364	2 computing base income, and that were paid, accrued, or
1365	1365	3 incurred, directly or indirectly, (i) for taxable
1366	1366	4 years ending on or after December 31, 2004, to a
1367	1367	5 foreign person who would be a member of the same
1368	1368	6 unitary business group but for the fact that the
1369	1369	7 foreign person's business activity outside the United
1370	1370	8 States is 80% or more of that person's total business
1371	1371	9 activity and (ii) for taxable years ending on or after
1372	1372	10 December 31, 2008, to a person who would be a member of
1373	1373	11 the same unitary business group but for the fact that
1374	1374	12 the person is prohibited under Section 1501(a)(27)
1375	1375	13 from being included in the unitary business group
1376	1376	14 because he or she is ordinarily required to apportion
1377	1377	15 business income under different subsections of Section
1378	1378	16 304. The addition modification required by this
1379	1379	17 subparagraph shall be reduced to the extent that
1380	1380	18 dividends were included in base income of the unitary
1381	1381	19 group for the same taxable year and received by the
1382	1382	20 taxpayer or by a member of the taxpayer's unitary
1383	1383	21 business group (including amounts included in gross
1384	1384	22 income pursuant to Sections 951 through 964 of the
1385	1385	23 Internal Revenue Code and amounts included in gross
1386	1386	24 income under Section 78 of the Internal Revenue Code)
1387	1387	25 with respect to the stock of the same person to whom
1388	1388	26 the intangible expenses and costs were directly or
1389	1389
1390	1390
1391	1391
1392	1392
1393	1393
1394	1394	SB1313 - 38 - LRB103 28169 HLH 54548 b
1395	1395
1396	1396
1397	1397	SB1313- 39 -LRB103 28169 HLH 54548 b SB1313 - 39 - LRB103 28169 HLH 54548 b
1398	1398	SB1313 - 39 - LRB103 28169 HLH 54548 b
1399	1399	1 indirectly paid, incurred, or accrued. The preceding
1400	1400	2 sentence shall not apply to the extent that the same
1401	1401	3 dividends caused a reduction to the addition
1402	1402	4 modification required under Section 203(b)(2)(E-12) of
1403	1403	5 this Act. As used in this subparagraph, the term
1404	1404	6 "intangible expenses and costs" includes (1) expenses,
1405	1405	7 losses, and costs for, or related to, the direct or
1406	1406	8 indirect acquisition, use, maintenance or management,
1407	1407	9 ownership, sale, exchange, or any other disposition of
1408	1408	10 intangible property; (2) losses incurred, directly or
1409	1409	11 indirectly, from factoring transactions or discounting
1410	1410	12 transactions; (3) royalty, patent, technical, and
1411	1411	13 copyright fees; (4) licensing fees; and (5) other
1412	1412	14 similar expenses and costs. For purposes of this
1413	1413	15 subparagraph, "intangible property" includes patents,
1414	1414	16 patent applications, trade names, trademarks, service
1415	1415	17 marks, copyrights, mask works, trade secrets, and
1416	1416	18 similar types of intangible assets.
1417	1417	19 This paragraph shall not apply to the following:
1418	1418	20 (i) any item of intangible expenses or costs
1419	1419	21 paid, accrued, or incurred, directly or
1420	1420	22 indirectly, from a transaction with a person who
1421	1421	23 is subject in a foreign country or state, other
1422	1422	24 than a state which requires mandatory unitary
1423	1423	25 reporting, to a tax on or measured by net income
1424	1424	26 with respect to such item; or
1425	1425
1426	1426
1427	1427
1428	1428
1429	1429
1430	1430	SB1313 - 39 - LRB103 28169 HLH 54548 b
1431	1431
1432	1432
1433	1433	SB1313- 40 -LRB103 28169 HLH 54548 b SB1313 - 40 - LRB103 28169 HLH 54548 b
1434	1434	SB1313 - 40 - LRB103 28169 HLH 54548 b
1435	1435	1 (ii) any item of intangible expense or cost
1436	1436	2 paid, accrued, or incurred, directly or
1437	1437	3 indirectly, if the taxpayer can establish, based
1438	1438	4 on a preponderance of the evidence, both of the
1439	1439	5 following:
1440	1440	6 (a) the person during the same taxable
1441	1441	7 year paid, accrued, or incurred, the
1442	1442	8 intangible expense or cost to a person that is
1443	1443	9 not a related member, and
1444	1444	10 (b) the transaction giving rise to the
1445	1445	11 intangible expense or cost between the
1446	1446	12 taxpayer and the person did not have as a
1447	1447	13 principal purpose the avoidance of Illinois
1448	1448	14 income tax, and is paid pursuant to a contract
1449	1449	15 or agreement that reflects arm's-length terms;
1450	1450	16 or
1451	1451	17 (iii) any item of intangible expense or cost
1452	1452	18 paid, accrued, or incurred, directly or
1453	1453	19 indirectly, from a transaction with a person if
1454	1454	20 the taxpayer establishes by clear and convincing
1455	1455	21 evidence, that the adjustments are unreasonable;
1456	1456	22 or if the taxpayer and the Director agree in
1457	1457	23 writing to the application or use of an
1458	1458	24 alternative method of apportionment under Section
1459	1459	25 304(f);
1460	1460	26 Nothing in this subsection shall preclude the
1461	1461
1462	1462
1463	1463
1464	1464
1465	1465
1466	1466	SB1313 - 40 - LRB103 28169 HLH 54548 b
1467	1467
1468	1468
1469	1469	SB1313- 41 -LRB103 28169 HLH 54548 b SB1313 - 41 - LRB103 28169 HLH 54548 b
1470	1470	SB1313 - 41 - LRB103 28169 HLH 54548 b
1471	1471	1 Director from making any other adjustment
1472	1472	2 otherwise allowed under Section 404 of this Act
1473	1473	3 for any tax year beginning after the effective
1474	1474	4 date of this amendment provided such adjustment is
1475	1475	5 made pursuant to regulation adopted by the
1476	1476	6 Department and such regulations provide methods
1477	1477	7 and standards by which the Department will utilize
1478	1478	8 its authority under Section 404 of this Act;
1479	1479	9 (E-14) For taxable years ending on or after
1480	1480	10 December 31, 2008, an amount equal to the amount of
1481	1481	11 insurance premium expenses and costs otherwise allowed
1482	1482	12 as a deduction in computing base income, and that were
1483	1483	13 paid, accrued, or incurred, directly or indirectly, to
1484	1484	14 a person who would be a member of the same unitary
1485	1485	15 business group but for the fact that the person is
1486	1486	16 prohibited under Section 1501(a)(27) from being
1487	1487	17 included in the unitary business group because he or
1488	1488	18 she is ordinarily required to apportion business
1489	1489	19 income under different subsections of Section 304. The
1490	1490	20 addition modification required by this subparagraph
1491	1491	21 shall be reduced to the extent that dividends were
1492	1492	22 included in base income of the unitary group for the
1493	1493	23 same taxable year and received by the taxpayer or by a
1494	1494	24 member of the taxpayer's unitary business group
1495	1495	25 (including amounts included in gross income under
1496	1496	26 Sections 951 through 964 of the Internal Revenue Code
1497	1497
1498	1498
1499	1499
1500	1500
1501	1501
1502	1502	SB1313 - 41 - LRB103 28169 HLH 54548 b
1503	1503
1504	1504
1505	1505	SB1313- 42 -LRB103 28169 HLH 54548 b SB1313 - 42 - LRB103 28169 HLH 54548 b
1506	1506	SB1313 - 42 - LRB103 28169 HLH 54548 b
1507	1507	1 and amounts included in gross income under Section 78
1508	1508	2 of the Internal Revenue Code) with respect to the
1509	1509	3 stock of the same person to whom the premiums and costs
1510	1510	4 were directly or indirectly paid, incurred, or
1511	1511	5 accrued. The preceding sentence does not apply to the
1512	1512	6 extent that the same dividends caused a reduction to
1513	1513	7 the addition modification required under Section
1514	1514	8 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1515	1515	9 Act;
1516	1516	10 (E-15) For taxable years beginning after December
1517	1517	11 31, 2008, any deduction for dividends paid by a
1518	1518	12 captive real estate investment trust that is allowed
1519	1519	13 to a real estate investment trust under Section
1520	1520	14 857(b)(2)(B) of the Internal Revenue Code for
1521	1521	15 dividends paid;
1522	1522	16 (E-16) An amount equal to the credit allowable to
1523	1523	17 the taxpayer under Section 218(a) of this Act,
1524	1524	18 determined without regard to Section 218(c) of this
1525	1525	19 Act;
1526	1526	20 (E-17) For taxable years ending on or after
1527	1527	21 December 31, 2017, an amount equal to the deduction
1528	1528	22 allowed under Section 199 of the Internal Revenue Code
1529	1529	23 for the taxable year;
1530	1530	24 (E-18) for taxable years beginning after December
1531	1531	25 31, 2018, an amount equal to the deduction allowed
1532	1532	26 under Section 250(a)(1)(A) of the Internal Revenue
1533	1533
1534	1534
1535	1535
1536	1536
1537	1537
1538	1538	SB1313 - 42 - LRB103 28169 HLH 54548 b
1539	1539
1540	1540
1541	1541	SB1313- 43 -LRB103 28169 HLH 54548 b SB1313 - 43 - LRB103 28169 HLH 54548 b
1542	1542	SB1313 - 43 - LRB103 28169 HLH 54548 b
1543	1543	1 Code for the taxable year;
1544	1544	2 (E-19) for taxable years ending on or after June
1545	1545	3 30, 2021, an amount equal to the deduction allowed
1546	1546	4 under Section 250(a)(1)(B)(i) of the Internal Revenue
1547	1547	5 Code for the taxable year;
1548	1548	6 (E-20) for taxable years ending on or after June
1549	1549	7 30, 2021, an amount equal to the deduction allowed
1550	1550	8 under Sections 243(e) and 245A(a) of the Internal
1551	1551	9 Revenue Code for the taxable year.
1552	1552	10 and by deducting from the total so obtained the sum of the
1553	1553	11 following amounts:
1554	1554	12 (F) An amount equal to the amount of any tax
1555	1555	13 imposed by this Act which was refunded to the taxpayer
1556	1556	14 and included in such total for the taxable year;
1557	1557	15 (G) An amount equal to any amount included in such
1558	1558	16 total under Section 78 of the Internal Revenue Code;
1559	1559	17 (H) In the case of a regulated investment company,
1560	1560	18 an amount equal to the amount of exempt interest
1561	1561	19 dividends as defined in subsection (b)(5) of Section
1562	1562	20 852 of the Internal Revenue Code, paid to shareholders
1563	1563	21 for the taxable year;
1564	1564	22 (I) With the exception of any amounts subtracted
1565	1565	23 under subparagraph (J), an amount equal to the sum of
1566	1566	24 all amounts disallowed as deductions by (i) Sections
1567	1567	25 171(a)(2) and 265(a)(2) and amounts disallowed as
1568	1568	26 interest expense by Section 291(a)(3) of the Internal
1569	1569
1570	1570
1571	1571
1572	1572
1573	1573
1574	1574	SB1313 - 43 - LRB103 28169 HLH 54548 b
1575	1575
1576	1576
1577	1577	SB1313- 44 -LRB103 28169 HLH 54548 b SB1313 - 44 - LRB103 28169 HLH 54548 b
1578	1578	SB1313 - 44 - LRB103 28169 HLH 54548 b
1579	1579	1 Revenue Code, and all amounts of expenses allocable to
1580	1580	2 interest and disallowed as deductions by Section
1581	1581	3 265(a)(1) of the Internal Revenue Code; and (ii) for
1582	1582	4 taxable years ending on or after August 13, 1999,
1583	1583	5 Sections 171(a)(2), 265, 280C, 291(a)(3), and
1584	1584	6 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
1585	1585	7 for tax years ending on or after December 31, 2011,
1586	1586	8 amounts disallowed as deductions by Section 45G(e)(3)
1587	1587	9 of the Internal Revenue Code and, for taxable years
1588	1588	10 ending on or after December 31, 2008, any amount
1589	1589	11 included in gross income under Section 87 of the
1590	1590	12 Internal Revenue Code and the policyholders' share of
1591	1591	13 tax-exempt interest of a life insurance company under
1592	1592	14 Section 807(a)(2)(B) of the Internal Revenue Code (in
1593	1593	15 the case of a life insurance company with gross income
1594	1594	16 from a decrease in reserves for the tax year) or
1595	1595	17 Section 807(b)(1)(B) of the Internal Revenue Code (in
1596	1596	18 the case of a life insurance company allowed a
1597	1597	19 deduction for an increase in reserves for the tax
1598	1598	20 year); the provisions of this subparagraph are exempt
1599	1599	21 from the provisions of Section 250;
1600	1600	22 (J) An amount equal to all amounts included in
1601	1601	23 such total which are exempt from taxation by this
1602	1602	24 State either by reason of its statutes or Constitution
1603	1603	25 or by reason of the Constitution, treaties or statutes
1604	1604	26 of the United States; provided that, in the case of any
1605	1605
1606	1606
1607	1607
1608	1608
1609	1609
1610	1610	SB1313 - 44 - LRB103 28169 HLH 54548 b
1611	1611
1612	1612
1613	1613	SB1313- 45 -LRB103 28169 HLH 54548 b SB1313 - 45 - LRB103 28169 HLH 54548 b
1614	1614	SB1313 - 45 - LRB103 28169 HLH 54548 b
1615	1615	1 statute of this State that exempts income derived from
1616	1616	2 bonds or other obligations from the tax imposed under
1617	1617	3 this Act, the amount exempted shall be the interest
1618	1618	4 net of bond premium amortization;
1619	1619	5 (K) An amount equal to those dividends included in
1620	1620	6 such total which were paid by a corporation which
1621	1621	7 conducts business operations in a River Edge
1622	1622	8 Redevelopment Zone or zones created under the River
1623	1623	9 Edge Redevelopment Zone Act and conducts substantially
1624	1624	10 all of its operations in a River Edge Redevelopment
1625	1625	11 Zone or zones. This subparagraph (K) is exempt from
1626	1626	12 the provisions of Section 250;
1627	1627	13 (L) An amount equal to those dividends included in
1628	1628	14 such total that were paid by a corporation that
1629	1629	15 conducts business operations in a federally designated
1630	1630	16 Foreign Trade Zone or Sub-Zone and that is designated
1631	1631	17 a High Impact Business located in Illinois; provided
1632	1632	18 that dividends eligible for the deduction provided in
1633	1633	19 subparagraph (K) of paragraph 2 of this subsection
1634	1634	20 shall not be eligible for the deduction provided under
1635	1635	21 this subparagraph (L);
1636	1636	22 (M) For any taxpayer that is a financial
1637	1637	23 organization within the meaning of Section 304(c) of
1638	1638	24 this Act, an amount included in such total as interest
1639	1639	25 income from a loan or loans made by such taxpayer to a
1640	1640	26 borrower, to the extent that such a loan is secured by
1641	1641
1642	1642
1643	1643
1644	1644
1645	1645
1646	1646	SB1313 - 45 - LRB103 28169 HLH 54548 b
1647	1647
1648	1648
1649	1649	SB1313- 46 -LRB103 28169 HLH 54548 b SB1313 - 46 - LRB103 28169 HLH 54548 b
1650	1650	SB1313 - 46 - LRB103 28169 HLH 54548 b
1651	1651	1 property which is eligible for the River Edge
1652	1652	2 Redevelopment Zone Investment Credit. To determine the
1653	1653	3 portion of a loan or loans that is secured by property
1654	1654	4 eligible for a Section 201(f) investment credit to the
1655	1655	5 borrower, the entire principal amount of the loan or
1656	1656	6 loans between the taxpayer and the borrower should be
1657	1657	7 divided into the basis of the Section 201(f)
1658	1658	8 investment credit property which secures the loan or
1659	1659	9 loans, using for this purpose the original basis of
1660	1660	10 such property on the date that it was placed in service
1661	1661	11 in the River Edge Redevelopment Zone. The subtraction
1662	1662	12 modification available to the taxpayer in any year
1663	1663	13 under this subsection shall be that portion of the
1664	1664	14 total interest paid by the borrower with respect to
1665	1665	15 such loan attributable to the eligible property as
1666	1666	16 calculated under the previous sentence. This
1667	1667	17 subparagraph (M) is exempt from the provisions of
1668	1668	18 Section 250;
1669	1669	19 (M-1) For any taxpayer that is a financial
1670	1670	20 organization within the meaning of Section 304(c) of
1671	1671	21 this Act, an amount included in such total as interest
1672	1672	22 income from a loan or loans made by such taxpayer to a
1673	1673	23 borrower, to the extent that such a loan is secured by
1674	1674	24 property which is eligible for the High Impact
1675	1675	25 Business Investment Credit. To determine the portion
1676	1676	26 of a loan or loans that is secured by property eligible
1677	1677
1678	1678
1679	1679
1680	1680
1681	1681
1682	1682	SB1313 - 46 - LRB103 28169 HLH 54548 b
1683	1683
1684	1684
1685	1685	SB1313- 47 -LRB103 28169 HLH 54548 b SB1313 - 47 - LRB103 28169 HLH 54548 b
1686	1686	SB1313 - 47 - LRB103 28169 HLH 54548 b
1687	1687	1 for a Section 201(h) investment credit to the
1688	1688	2 borrower, the entire principal amount of the loan or
1689	1689	3 loans between the taxpayer and the borrower should be
1690	1690	4 divided into the basis of the Section 201(h)
1691	1691	5 investment credit property which secures the loan or
1692	1692	6 loans, using for this purpose the original basis of
1693	1693	7 such property on the date that it was placed in service
1694	1694	8 in a federally designated Foreign Trade Zone or
1695	1695	9 Sub-Zone located in Illinois. No taxpayer that is
1696	1696	10 eligible for the deduction provided in subparagraph
1697	1697	11 (M) of paragraph (2) of this subsection shall be
1698	1698	12 eligible for the deduction provided under this
1699	1699	13 subparagraph (M-1). The subtraction modification
1700	1700	14 available to taxpayers in any year under this
1701	1701	15 subsection shall be that portion of the total interest
1702	1702	16 paid by the borrower with respect to such loan
1703	1703	17 attributable to the eligible property as calculated
1704	1704	18 under the previous sentence;
1705	1705	19 (N) Two times any contribution made during the
1706	1706	20 taxable year to a designated zone organization to the
1707	1707	21 extent that the contribution (i) qualifies as a
1708	1708	22 charitable contribution under subsection (c) of
1709	1709	23 Section 170 of the Internal Revenue Code and (ii)
1710	1710	24 must, by its terms, be used for a project approved by
1711	1711	25 the Department of Commerce and Economic Opportunity
1712	1712	26 under Section 11 of the Illinois Enterprise Zone Act
1713	1713
1714	1714
1715	1715
1716	1716
1717	1717
1718	1718	SB1313 - 47 - LRB103 28169 HLH 54548 b
1719	1719
1720	1720
1721	1721	SB1313- 48 -LRB103 28169 HLH 54548 b SB1313 - 48 - LRB103 28169 HLH 54548 b
1722	1722	SB1313 - 48 - LRB103 28169 HLH 54548 b
1723	1723	1 or under Section 10-10 of the River Edge Redevelopment
1724	1724	2 Zone Act. This subparagraph (N) is exempt from the
1725	1725	3 provisions of Section 250;
1726	1726	4 (O) An amount equal to: (i) 85% for taxable years
1727	1727	5 ending on or before December 31, 1992, or, a
1728	1728	6 percentage equal to the percentage allowable under
1729	1729	7 Section 243(a)(1) of the Internal Revenue Code of 1986
1730	1730	8 for taxable years ending after December 31, 1992, of
1731	1731	9 the amount by which dividends included in taxable
1732	1732	10 income and received from a corporation that is not
1733	1733	11 created or organized under the laws of the United
1734	1734	12 States or any state or political subdivision thereof,
1735	1735	13 including, for taxable years ending on or after
1736	1736	14 December 31, 1988, dividends received or deemed
1737	1737	15 received or paid or deemed paid under Sections 951
1738	1738	16 through 965 of the Internal Revenue Code, exceed the
1739	1739	17 amount of the modification provided under subparagraph
1740	1740	18 (G) of paragraph (2) of this subsection (b) which is
1741	1741	19 related to such dividends, and including, for taxable
1742	1742	20 years ending on or after December 31, 2008, dividends
1743	1743	21 received from a captive real estate investment trust;
1744	1744	22 plus (ii) 100% of the amount by which dividends,
1745	1745	23 included in taxable income and received, including,
1746	1746	24 for taxable years ending on or after December 31,
1747	1747	25 1988, dividends received or deemed received or paid or
1748	1748	26 deemed paid under Sections 951 through 964 of the
1749	1749
1750	1750
1751	1751
1752	1752
1753	1753
1754	1754	SB1313 - 48 - LRB103 28169 HLH 54548 b
1755	1755
1756	1756
1757	1757	SB1313- 49 -LRB103 28169 HLH 54548 b SB1313 - 49 - LRB103 28169 HLH 54548 b
1758	1758	SB1313 - 49 - LRB103 28169 HLH 54548 b
1759	1759	1 Internal Revenue Code and including, for taxable years
1760	1760	2 ending on or after December 31, 2008, dividends
1761	1761	3 received from a captive real estate investment trust,
1762	1762	4 from any such corporation specified in clause (i) that
1763	1763	5 would but for the provisions of Section 1504(b)(3) of
1764	1764	6 the Internal Revenue Code be treated as a member of the
1765	1765	7 affiliated group which includes the dividend
1766	1766	8 recipient, exceed the amount of the modification
1767	1767	9 provided under subparagraph (G) of paragraph (2) of
1768	1768	10 this subsection (b) which is related to such
1769	1769	11 dividends. For taxable years ending on or after June
1770	1770	12 30, 2021, (i) for purposes of this subparagraph, the
1771	1771	13 term "dividend" does not include any amount treated as
1772	1772	14 a dividend under Section 1248 of the Internal Revenue
1773	1773	15 Code, and (ii) this subparagraph shall not apply to
1774	1774	16 dividends for which a deduction is allowed under
1775	1775	17 Section 245(a) of the Internal Revenue Code. This
1776	1776	18 subparagraph (O) is exempt from the provisions of
1777	1777	19 Section 250 of this Act;
1778	1778	20 (P) An amount equal to any contribution made to a
1779	1779	21 job training project established pursuant to the Tax
1780	1780	22 Increment Allocation Redevelopment Act;
1781	1781	23 (Q) An amount equal to the amount of the deduction
1782	1782	24 used to compute the federal income tax credit for
1783	1783	25 restoration of substantial amounts held under claim of
1784	1784	26 right for the taxable year pursuant to Section 1341 of
1785	1785
1786	1786
1787	1787
1788	1788
1789	1789
1790	1790	SB1313 - 49 - LRB103 28169 HLH 54548 b
1791	1791
1792	1792
1793	1793	SB1313- 50 -LRB103 28169 HLH 54548 b SB1313 - 50 - LRB103 28169 HLH 54548 b
1794	1794	SB1313 - 50 - LRB103 28169 HLH 54548 b
1795	1795	1 the Internal Revenue Code;
1796	1796	2 (R) On and after July 20, 1999, in the case of an
1797	1797	3 attorney-in-fact with respect to whom an interinsurer
1798	1798	4 or a reciprocal insurer has made the election under
1799	1799	5 Section 835 of the Internal Revenue Code, 26 U.S.C.
1800	1800	6 835, an amount equal to the excess, if any, of the
1801	1801	7 amounts paid or incurred by that interinsurer or
1802	1802	8 reciprocal insurer in the taxable year to the
1803	1803	9 attorney-in-fact over the deduction allowed to that
1804	1804	10 interinsurer or reciprocal insurer with respect to the
1805	1805	11 attorney-in-fact under Section 835(b) of the Internal
1806	1806	12 Revenue Code for the taxable year; the provisions of
1807	1807	13 this subparagraph are exempt from the provisions of
1808	1808	14 Section 250;
1809	1809	15 (S) For taxable years ending on or after December
1810	1810	16 31, 1997, in the case of a Subchapter S corporation, an
1811	1811	17 amount equal to all amounts of income allocable to a
1812	1812	18 shareholder subject to the Personal Property Tax
1813	1813	19 Replacement Income Tax imposed by subsections (c) and
1814	1814	20 (d) of Section 201 of this Act, including amounts
1815	1815	21 allocable to organizations exempt from federal income
1816	1816	22 tax by reason of Section 501(a) of the Internal
1817	1817	23 Revenue Code. This subparagraph (S) is exempt from the
1818	1818	24 provisions of Section 250;
1819	1819	25 (T) For taxable years 2001 and thereafter, for the
1820	1820	26 taxable year in which the bonus depreciation deduction
1821	1821
1822	1822
1823	1823
1824	1824
1825	1825
1826	1826	SB1313 - 50 - LRB103 28169 HLH 54548 b
1827	1827
1828	1828
1829	1829	SB1313- 51 -LRB103 28169 HLH 54548 b SB1313 - 51 - LRB103 28169 HLH 54548 b
1830	1830	SB1313 - 51 - LRB103 28169 HLH 54548 b
1831	1831	1 is taken on the taxpayer's federal income tax return
1832	1832	2 under subsection (k) of Section 168 of the Internal
1833	1833	3 Revenue Code and for each applicable taxable year
1834	1834	4 thereafter, an amount equal to "x", where:
1835	1835	5 (1) "y" equals the amount of the depreciation
1836	1836	6 deduction taken for the taxable year on the
1837	1837	7 taxpayer's federal income tax return on property
1838	1838	8 for which the bonus depreciation deduction was
1839	1839	9 taken in any year under subsection (k) of Section
1840	1840	10 168 of the Internal Revenue Code, but not
1841	1841	11 including the bonus depreciation deduction;
1842	1842	12 (2) for taxable years ending on or before
1843	1843	13 December 31, 2005, "x" equals "y" multiplied by 30
1844	1844	14 and then divided by 70 (or "y" multiplied by
1845	1845	15 0.429); and
1846	1846	16 (3) for taxable years ending after December
1847	1847	17 31, 2005:
1848	1848	18 (i) for property on which a bonus
1849	1849	19 depreciation deduction of 30% of the adjusted
1850	1850	20 basis was taken, "x" equals "y" multiplied by
1851	1851	21 30 and then divided by 70 (or "y" multiplied
1852	1852	22 by 0.429);
1853	1853	23 (ii) for property on which a bonus
1854	1854	24 depreciation deduction of 50% of the adjusted
1855	1855	25 basis was taken, "x" equals "y" multiplied by
1856	1856	26 1.0;
1857	1857
1858	1858
1859	1859
1860	1860
1861	1861
1862	1862	SB1313 - 51 - LRB103 28169 HLH 54548 b
1863	1863
1864	1864
1865	1865	SB1313- 52 -LRB103 28169 HLH 54548 b SB1313 - 52 - LRB103 28169 HLH 54548 b
1866	1866	SB1313 - 52 - LRB103 28169 HLH 54548 b
1867	1867	1 (iii) for property on which a bonus
1868	1868	2 depreciation deduction of 100% of the adjusted
1869	1869	3 basis was taken in a taxable year ending on or
1870	1870	4 after December 31, 2021, "x" equals the
1871	1871	5 depreciation deduction that would be allowed
1872	1872	6 on that property if the taxpayer had made the
1873	1873	7 election under Section 168(k)(7) of the
1874	1874	8 Internal Revenue Code to not claim bonus
1875	1875	9 depreciation on that property; and
1876	1876	10 (iv) for property on which a bonus
1877	1877	11 depreciation deduction of a percentage other
1878	1878	12 than 30%, 50% or 100% of the adjusted basis
1879	1879	13 was taken in a taxable year ending on or after
1880	1880	14 December 31, 2021, "x" equals "y" multiplied
1881	1881	15 by 100 times the percentage bonus depreciation
1882	1882	16 on the property (that is, 100(bonus%)) and
1883	1883	17 then divided by 100 times 1 minus the
1884	1884	18 percentage bonus depreciation on the property
1885	1885	19 (that is, 100(1bonus%)).
1886	1886	20 The aggregate amount deducted under this
1887	1887	21 subparagraph in all taxable years for any one piece of
1888	1888	22 property may not exceed the amount of the bonus
1889	1889	23 depreciation deduction taken on that property on the
1890	1890	24 taxpayer's federal income tax return under subsection
1891	1891	25 (k) of Section 168 of the Internal Revenue Code. This
1892	1892	26 subparagraph (T) is exempt from the provisions of
1893	1893
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898	SB1313 - 52 - LRB103 28169 HLH 54548 b
1899	1899
1900	1900
1901	1901	SB1313- 53 -LRB103 28169 HLH 54548 b SB1313 - 53 - LRB103 28169 HLH 54548 b
1902	1902	SB1313 - 53 - LRB103 28169 HLH 54548 b
1903	1903	1 Section 250;
1904	1904	2 (U) If the taxpayer sells, transfers, abandons, or
1905	1905	3 otherwise disposes of property for which the taxpayer
1906	1906	4 was required in any taxable year to make an addition
1907	1907	5 modification under subparagraph (E-10), then an amount
1908	1908	6 equal to that addition modification.
1909	1909	7 If the taxpayer continues to own property through
1910	1910	8 the last day of the last tax year for which a
1911	1911	9 subtraction is allowed with respect to that property
1912	1912	10 under subparagraph (T) and for which the taxpayer was
1913	1913	11 required in any taxable year to make an addition
1914	1914	12 modification under subparagraph (E-10), then an amount
1915	1915	13 equal to that addition modification.
1916	1916	14 The taxpayer is allowed to take the deduction
1917	1917	15 under this subparagraph only once with respect to any
1918	1918	16 one piece of property.
1919	1919	17 This subparagraph (U) is exempt from the
1920	1920	18 provisions of Section 250;
1921	1921	19 (V) The amount of: (i) any interest income (net of
1922	1922	20 the deductions allocable thereto) taken into account
1923	1923	21 for the taxable year with respect to a transaction
1924	1924	22 with a taxpayer that is required to make an addition
1925	1925	23 modification with respect to such transaction under
1926	1926	24 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1927	1927	25 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1928	1928	26 the amount of such addition modification, (ii) any
1929	1929
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934	SB1313 - 53 - LRB103 28169 HLH 54548 b
1935	1935
1936	1936
1937	1937	SB1313- 54 -LRB103 28169 HLH 54548 b SB1313 - 54 - LRB103 28169 HLH 54548 b
1938	1938	SB1313 - 54 - LRB103 28169 HLH 54548 b
1939	1939	1 income from intangible property (net of the deductions
1940	1940	2 allocable thereto) taken into account for the taxable
1941	1941	3 year with respect to a transaction with a taxpayer
1942	1942	4 that is required to make an addition modification with
1943	1943	5 respect to such transaction under Section
1944	1944	6 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
1945	1945	7 203(d)(2)(D-8), but not to exceed the amount of such
1946	1946	8 addition modification, and (iii) any insurance premium
1947	1947	9 income (net of deductions allocable thereto) taken
1948	1948	10 into account for the taxable year with respect to a
1949	1949	11 transaction with a taxpayer that is required to make
1950	1950	12 an addition modification with respect to such
1951	1951	13 transaction under Section 203(a)(2)(D-19), Section
1952	1952	14 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
1953	1953	15 203(d)(2)(D-9), but not to exceed the amount of that
1954	1954	16 addition modification. This subparagraph (V) is exempt
1955	1955	17 from the provisions of Section 250;
1956	1956	18 (W) An amount equal to the interest income taken
1957	1957	19 into account for the taxable year (net of the
1958	1958	20 deductions allocable thereto) with respect to
1959	1959	21 transactions with (i) a foreign person who would be a
1960	1960	22 member of the taxpayer's unitary business group but
1961	1961	23 for the fact that the foreign person's business
1962	1962	24 activity outside the United States is 80% or more of
1963	1963	25 that person's total business activity and (ii) for
1964	1964	26 taxable years ending on or after December 31, 2008, to
1965	1965
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970	SB1313 - 54 - LRB103 28169 HLH 54548 b
1971	1971
1972	1972
1973	1973	SB1313- 55 -LRB103 28169 HLH 54548 b SB1313 - 55 - LRB103 28169 HLH 54548 b
1974	1974	SB1313 - 55 - LRB103 28169 HLH 54548 b
1975	1975	1 a person who would be a member of the same unitary
1976	1976	2 business group but for the fact that the person is
1977	1977	3 prohibited under Section 1501(a)(27) from being
1978	1978	4 included in the unitary business group because he or
1979	1979	5 she is ordinarily required to apportion business
1980	1980	6 income under different subsections of Section 304, but
1981	1981	7 not to exceed the addition modification required to be
1982	1982	8 made for the same taxable year under Section
1983	1983	9 203(b)(2)(E-12) for interest paid, accrued, or
1984	1984	10 incurred, directly or indirectly, to the same person.
1985	1985	11 This subparagraph (W) is exempt from the provisions of
1986	1986	12 Section 250;
1987	1987	13 (X) An amount equal to the income from intangible
1988	1988	14 property taken into account for the taxable year (net
1989	1989	15 of the deductions allocable thereto) with respect to
1990	1990	16 transactions with (i) a foreign person who would be a
1991	1991	17 member of the taxpayer's unitary business group but
1992	1992	18 for the fact that the foreign person's business
1993	1993	19 activity outside the United States is 80% or more of
1994	1994	20 that person's total business activity and (ii) for
1995	1995	21 taxable years ending on or after December 31, 2008, to
1996	1996	22 a person who would be a member of the same unitary
1997	1997	23 business group but for the fact that the person is
1998	1998	24 prohibited under Section 1501(a)(27) from being
1999	1999	25 included in the unitary business group because he or
2000	2000	26 she is ordinarily required to apportion business
2001	2001
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006	SB1313 - 55 - LRB103 28169 HLH 54548 b
2007	2007
2008	2008
2009	2009	SB1313- 56 -LRB103 28169 HLH 54548 b SB1313 - 56 - LRB103 28169 HLH 54548 b
2010	2010	SB1313 - 56 - LRB103 28169 HLH 54548 b
2011	2011	1 income under different subsections of Section 304, but
2012	2012	2 not to exceed the addition modification required to be
2013	2013	3 made for the same taxable year under Section
2014	2014	4 203(b)(2)(E-13) for intangible expenses and costs
2015	2015	5 paid, accrued, or incurred, directly or indirectly, to
2016	2016	6 the same foreign person. This subparagraph (X) is
2017	2017	7 exempt from the provisions of Section 250;
2018	2018	8 (Y) For taxable years ending on or after December
2019	2019	9 31, 2011, in the case of a taxpayer who was required to
2020	2020	10 add back any insurance premiums under Section
2021	2021	11 203(b)(2)(E-14), such taxpayer may elect to subtract
2022	2022	12 that part of a reimbursement received from the
2023	2023	13 insurance company equal to the amount of the expense
2024	2024	14 or loss (including expenses incurred by the insurance
2025	2025	15 company) that would have been taken into account as a
2026	2026	16 deduction for federal income tax purposes if the
2027	2027	17 expense or loss had been uninsured. If a taxpayer
2028	2028	18 makes the election provided for by this subparagraph
2029	2029	19 (Y), the insurer to which the premiums were paid must
2030	2030	20 add back to income the amount subtracted by the
2031	2031	21 taxpayer pursuant to this subparagraph (Y). This
2032	2032	22 subparagraph (Y) is exempt from the provisions of
2033	2033	23 Section 250; and
2034	2034	24 (Z) The difference between the nondeductible
2035	2035	25 controlled foreign corporation dividends under Section
2036	2036	26 965(e)(3) of the Internal Revenue Code over the
2037	2037
2038	2038
2039	2039
2040	2040
2041	2041
2042	2042	SB1313 - 56 - LRB103 28169 HLH 54548 b
2043	2043
2044	2044
2045	2045	SB1313- 57 -LRB103 28169 HLH 54548 b SB1313 - 57 - LRB103 28169 HLH 54548 b
2046	2046	SB1313 - 57 - LRB103 28169 HLH 54548 b
2047	2047	1 taxable income of the taxpayer, computed without
2048	2048	2 regard to Section 965(e)(2)(A) of the Internal Revenue
2049	2049	3 Code, and without regard to any net operating loss
2050	2050	4 deduction. This subparagraph (Z) is exempt from the
2051	2051	5 provisions of Section 250; and .
2052	2052	6 (AA) For taxable years beginning on or after
2053	2053	7 January 1, 2023, amounts paid by the taxpayer on
2054	2054	8 behalf of an employee of the taxpayer as part of an
2055	2055	9 educational assistance program, as defined in Section
2056	2056	10 127 of the Internal Revenue Code; the deduction under
2057	2057	11 this subparagraph shall apply only to the first $5,250
2058	2058	12 of such assistance so furnished to any particular
2059	2059	13 individual; this subparagraph is exempt from the
2060	2060	14 provisions of Section 250.
2061	2061	15 (3) Special rule. For purposes of paragraph (2)(A),
2062	2062	16 "gross income" in the case of a life insurance company,
2063	2063	17 for tax years ending on and after December 31, 1994, and
2064	2064	18 prior to December 31, 2011, shall mean the gross
2065	2065	19 investment income for the taxable year and, for tax years
2066	2066	20 ending on or after December 31, 2011, shall mean all
2067	2067	21 amounts included in life insurance gross income under
2068	2068	22 Section 803(a)(3) of the Internal Revenue Code.
2069	2069	23 (c) Trusts and estates.
2070	2070	24 (1) In general. In the case of a trust or estate, base
2071	2071	25 income means an amount equal to the taxpayer's taxable
2072	2072
2073	2073
2074	2074
2075	2075
2076	2076
2077	2077	SB1313 - 57 - LRB103 28169 HLH 54548 b
2078	2078
2079	2079
2080	2080	SB1313- 58 -LRB103 28169 HLH 54548 b SB1313 - 58 - LRB103 28169 HLH 54548 b
2081	2081	SB1313 - 58 - LRB103 28169 HLH 54548 b
2082	2082	1 income for the taxable year as modified by paragraph (2).
2083	2083	2 (2) Modifications. Subject to the provisions of
2084	2084	3 paragraph (3), the taxable income referred to in paragraph
2085	2085	4 (1) shall be modified by adding thereto the sum of the
2086	2086	5 following amounts:
2087	2087	6 (A) An amount equal to all amounts paid or accrued
2088	2088	7 to the taxpayer as interest or dividends during the
2089	2089	8 taxable year to the extent excluded from gross income
2090	2090	9 in the computation of taxable income;
2091	2091	10 (B) In the case of (i) an estate, $600; (ii) a
2092	2092	11 trust which, under its governing instrument, is
2093	2093	12 required to distribute all of its income currently,
2094	2094	13 $300; and (iii) any other trust, $100, but in each such
2095	2095	14 case, only to the extent such amount was deducted in
2096	2096	15 the computation of taxable income;
2097	2097	16 (C) An amount equal to the amount of tax imposed by
2098	2098	17 this Act to the extent deducted from gross income in
2099	2099	18 the computation of taxable income for the taxable
2100	2100	19 year;
2101	2101	20 (D) The amount of any net operating loss deduction
2102	2102	21 taken in arriving at taxable income, other than a net
2103	2103	22 operating loss carried forward from a taxable year
2104	2104	23 ending prior to December 31, 1986;
2105	2105	24 (E) For taxable years in which a net operating
2106	2106	25 loss carryback or carryforward from a taxable year
2107	2107	26 ending prior to December 31, 1986 is an element of
2108	2108
2109	2109
2110	2110
2111	2111
2112	2112
2113	2113	SB1313 - 58 - LRB103 28169 HLH 54548 b
2114	2114
2115	2115
2116	2116	SB1313- 59 -LRB103 28169 HLH 54548 b SB1313 - 59 - LRB103 28169 HLH 54548 b
2117	2117	SB1313 - 59 - LRB103 28169 HLH 54548 b
2118	2118	1 taxable income under paragraph (1) of subsection (e)
2119	2119	2 or subparagraph (E) of paragraph (2) of subsection
2120	2120	3 (e), the amount by which addition modifications other
2121	2121	4 than those provided by this subparagraph (E) exceeded
2122	2122	5 subtraction modifications in such taxable year, with
2123	2123	6 the following limitations applied in the order that
2124	2124	7 they are listed:
2125	2125	8 (i) the addition modification relating to the
2126	2126	9 net operating loss carried back or forward to the
2127	2127	10 taxable year from any taxable year ending prior to
2128	2128	11 December 31, 1986 shall be reduced by the amount
2129	2129	12 of addition modification under this subparagraph
2130	2130	13 (E) which related to that net operating loss and
2131	2131	14 which was taken into account in calculating the
2132	2132	15 base income of an earlier taxable year, and
2133	2133	16 (ii) the addition modification relating to the
2134	2134	17 net operating loss carried back or forward to the
2135	2135	18 taxable year from any taxable year ending prior to
2136	2136	19 December 31, 1986 shall not exceed the amount of
2137	2137	20 such carryback or carryforward;
2138	2138	21 For taxable years in which there is a net
2139	2139	22 operating loss carryback or carryforward from more
2140	2140	23 than one other taxable year ending prior to December
2141	2141	24 31, 1986, the addition modification provided in this
2142	2142	25 subparagraph (E) shall be the sum of the amounts
2143	2143	26 computed independently under the preceding provisions
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148
2149	2149	SB1313 - 59 - LRB103 28169 HLH 54548 b
2150	2150
2151	2151
2152	2152	SB1313- 60 -LRB103 28169 HLH 54548 b SB1313 - 60 - LRB103 28169 HLH 54548 b
2153	2153	SB1313 - 60 - LRB103 28169 HLH 54548 b
2154	2154	1 of this subparagraph (E) for each such taxable year;
2155	2155	2 (F) For taxable years ending on or after January
2156	2156	3 1, 1989, an amount equal to the tax deducted pursuant
2157	2157	4 to Section 164 of the Internal Revenue Code if the
2158	2158	5 trust or estate is claiming the same tax for purposes
2159	2159	6 of the Illinois foreign tax credit under Section 601
2160	2160	7 of this Act;
2161	2161	8 (G) An amount equal to the amount of the capital
2162	2162	9 gain deduction allowable under the Internal Revenue
2163	2163	10 Code, to the extent deducted from gross income in the
2164	2164	11 computation of taxable income;
2165	2165	12 (G-5) For taxable years ending after December 31,
2166	2166	13 1997, an amount equal to any eligible remediation
2167	2167	14 costs that the trust or estate deducted in computing
2168	2168	15 adjusted gross income and for which the trust or
2169	2169	16 estate claims a credit under subsection (l) of Section
2170	2170	17 201;
2171	2171	18 (G-10) For taxable years 2001 and thereafter, an
2172	2172	19 amount equal to the bonus depreciation deduction taken
2173	2173	20 on the taxpayer's federal income tax return for the
2174	2174	21 taxable year under subsection (k) of Section 168 of
2175	2175	22 the Internal Revenue Code; and
2176	2176	23 (G-11) If the taxpayer sells, transfers, abandons,
2177	2177	24 or otherwise disposes of property for which the
2178	2178	25 taxpayer was required in any taxable year to make an
2179	2179	26 addition modification under subparagraph (G-10), then
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184
2185	2185	SB1313 - 60 - LRB103 28169 HLH 54548 b
2186	2186
2187	2187
2188	2188	SB1313- 61 -LRB103 28169 HLH 54548 b SB1313 - 61 - LRB103 28169 HLH 54548 b
2189	2189	SB1313 - 61 - LRB103 28169 HLH 54548 b
2190	2190	1 an amount equal to the aggregate amount of the
2191	2191	2 deductions taken in all taxable years under
2192	2192	3 subparagraph (R) with respect to that property.
2193	2193	4 If the taxpayer continues to own property through
2194	2194	5 the last day of the last tax year for which a
2195	2195	6 subtraction is allowed with respect to that property
2196	2196	7 under subparagraph (R) and for which the taxpayer was
2197	2197	8 allowed in any taxable year to make a subtraction
2198	2198	9 modification under subparagraph (R), then an amount
2199	2199	10 equal to that subtraction modification.
2200	2200	11 The taxpayer is required to make the addition
2201	2201	12 modification under this subparagraph only once with
2202	2202	13 respect to any one piece of property;
2203	2203	14 (G-12) An amount equal to the amount otherwise
2204	2204	15 allowed as a deduction in computing base income for
2205	2205	16 interest paid, accrued, or incurred, directly or
2206	2206	17 indirectly, (i) for taxable years ending on or after
2207	2207	18 December 31, 2004, to a foreign person who would be a
2208	2208	19 member of the same unitary business group but for the
2209	2209	20 fact that the foreign person's business activity
2210	2210	21 outside the United States is 80% or more of the foreign
2211	2211	22 person's total business activity and (ii) for taxable
2212	2212	23 years ending on or after December 31, 2008, to a person
2213	2213	24 who would be a member of the same unitary business
2214	2214	25 group but for the fact that the person is prohibited
2215	2215	26 under Section 1501(a)(27) from being included in the
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220
2221	2221	SB1313 - 61 - LRB103 28169 HLH 54548 b
2222	2222
2223	2223
2224	2224	SB1313- 62 -LRB103 28169 HLH 54548 b SB1313 - 62 - LRB103 28169 HLH 54548 b
2225	2225	SB1313 - 62 - LRB103 28169 HLH 54548 b
2226	2226	1 unitary business group because he or she is ordinarily
2227	2227	2 required to apportion business income under different
2228	2228	3 subsections of Section 304. The addition modification
2229	2229	4 required by this subparagraph shall be reduced to the
2230	2230	5 extent that dividends were included in base income of
2231	2231	6 the unitary group for the same taxable year and
2232	2232	7 received by the taxpayer or by a member of the
2233	2233	8 taxpayer's unitary business group (including amounts
2234	2234	9 included in gross income pursuant to Sections 951
2235	2235	10 through 964 of the Internal Revenue Code and amounts
2236	2236	11 included in gross income under Section 78 of the
2237	2237	12 Internal Revenue Code) with respect to the stock of
2238	2238	13 the same person to whom the interest was paid,
2239	2239	14 accrued, or incurred.
2240	2240	15 This paragraph shall not apply to the following:
2241	2241	16 (i) an item of interest paid, accrued, or
2242	2242	17 incurred, directly or indirectly, to a person who
2243	2243	18 is subject in a foreign country or state, other
2244	2244	19 than a state which requires mandatory unitary
2245	2245	20 reporting, to a tax on or measured by net income
2246	2246	21 with respect to such interest; or
2247	2247	22 (ii) an item of interest paid, accrued, or
2248	2248	23 incurred, directly or indirectly, to a person if
2249	2249	24 the taxpayer can establish, based on a
2250	2250	25 preponderance of the evidence, both of the
2251	2251	26 following:
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256
2257	2257	SB1313 - 62 - LRB103 28169 HLH 54548 b
2258	2258
2259	2259
2260	2260	SB1313- 63 -LRB103 28169 HLH 54548 b SB1313 - 63 - LRB103 28169 HLH 54548 b
2261	2261	SB1313 - 63 - LRB103 28169 HLH 54548 b
2262	2262	1 (a) the person, during the same taxable
2263	2263	2 year, paid, accrued, or incurred, the interest
2264	2264	3 to a person that is not a related member, and
2265	2265	4 (b) the transaction giving rise to the
2266	2266	5 interest expense between the taxpayer and the
2267	2267	6 person did not have as a principal purpose the
2268	2268	7 avoidance of Illinois income tax, and is paid
2269	2269	8 pursuant to a contract or agreement that
2270	2270	9 reflects an arm's-length interest rate and
2271	2271	10 terms; or
2272	2272	11 (iii) the taxpayer can establish, based on
2273	2273	12 clear and convincing evidence, that the interest
2274	2274	13 paid, accrued, or incurred relates to a contract
2275	2275	14 or agreement entered into at arm's-length rates
2276	2276	15 and terms and the principal purpose for the
2277	2277	16 payment is not federal or Illinois tax avoidance;
2278	2278	17 or
2279	2279	18 (iv) an item of interest paid, accrued, or
2280	2280	19 incurred, directly or indirectly, to a person if
2281	2281	20 the taxpayer establishes by clear and convincing
2282	2282	21 evidence that the adjustments are unreasonable; or
2283	2283	22 if the taxpayer and the Director agree in writing
2284	2284	23 to the application or use of an alternative method
2285	2285	24 of apportionment under Section 304(f).
2286	2286	25 Nothing in this subsection shall preclude the
2287	2287	26 Director from making any other adjustment
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292
2293	2293	SB1313 - 63 - LRB103 28169 HLH 54548 b
2294	2294
2295	2295
2296	2296	SB1313- 64 -LRB103 28169 HLH 54548 b SB1313 - 64 - LRB103 28169 HLH 54548 b
2297	2297	SB1313 - 64 - LRB103 28169 HLH 54548 b
2298	2298	1 otherwise allowed under Section 404 of this Act
2299	2299	2 for any tax year beginning after the effective
2300	2300	3 date of this amendment provided such adjustment is
2301	2301	4 made pursuant to regulation adopted by the
2302	2302	5 Department and such regulations provide methods
2303	2303	6 and standards by which the Department will utilize
2304	2304	7 its authority under Section 404 of this Act;
2305	2305	8 (G-13) An amount equal to the amount of intangible
2306	2306	9 expenses and costs otherwise allowed as a deduction in
2307	2307	10 computing base income, and that were paid, accrued, or
2308	2308	11 incurred, directly or indirectly, (i) for taxable
2309	2309	12 years ending on or after December 31, 2004, to a
2310	2310	13 foreign person who would be a member of the same
2311	2311	14 unitary business group but for the fact that the
2312	2312	15 foreign person's business activity outside the United
2313	2313	16 States is 80% or more of that person's total business
2314	2314	17 activity and (ii) for taxable years ending on or after
2315	2315	18 December 31, 2008, to a person who would be a member of
2316	2316	19 the same unitary business group but for the fact that
2317	2317	20 the person is prohibited under Section 1501(a)(27)
2318	2318	21 from being included in the unitary business group
2319	2319	22 because he or she is ordinarily required to apportion
2320	2320	23 business income under different subsections of Section
2321	2321	24 304. The addition modification required by this
2322	2322	25 subparagraph shall be reduced to the extent that
2323	2323	26 dividends were included in base income of the unitary
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328
2329	2329	SB1313 - 64 - LRB103 28169 HLH 54548 b
2330	2330
2331	2331
2332	2332	SB1313- 65 -LRB103 28169 HLH 54548 b SB1313 - 65 - LRB103 28169 HLH 54548 b
2333	2333	SB1313 - 65 - LRB103 28169 HLH 54548 b
2334	2334	1 group for the same taxable year and received by the
2335	2335	2 taxpayer or by a member of the taxpayer's unitary
2336	2336	3 business group (including amounts included in gross
2337	2337	4 income pursuant to Sections 951 through 964 of the
2338	2338	5 Internal Revenue Code and amounts included in gross
2339	2339	6 income under Section 78 of the Internal Revenue Code)
2340	2340	7 with respect to the stock of the same person to whom
2341	2341	8 the intangible expenses and costs were directly or
2342	2342	9 indirectly paid, incurred, or accrued. The preceding
2343	2343	10 sentence shall not apply to the extent that the same
2344	2344	11 dividends caused a reduction to the addition
2345	2345	12 modification required under Section 203(c)(2)(G-12) of
2346	2346	13 this Act. As used in this subparagraph, the term
2347	2347	14 "intangible expenses and costs" includes: (1)
2348	2348	15 expenses, losses, and costs for or related to the
2349	2349	16 direct or indirect acquisition, use, maintenance or
2350	2350	17 management, ownership, sale, exchange, or any other
2351	2351	18 disposition of intangible property; (2) losses
2352	2352	19 incurred, directly or indirectly, from factoring
2353	2353	20 transactions or discounting transactions; (3) royalty,
2354	2354	21 patent, technical, and copyright fees; (4) licensing
2355	2355	22 fees; and (5) other similar expenses and costs. For
2356	2356	23 purposes of this subparagraph, "intangible property"
2357	2357	24 includes patents, patent applications, trade names,
2358	2358	25 trademarks, service marks, copyrights, mask works,
2359	2359	26 trade secrets, and similar types of intangible assets.
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364
2365	2365	SB1313 - 65 - LRB103 28169 HLH 54548 b
2366	2366
2367	2367
2368	2368	SB1313- 66 -LRB103 28169 HLH 54548 b SB1313 - 66 - LRB103 28169 HLH 54548 b
2369	2369	SB1313 - 66 - LRB103 28169 HLH 54548 b
2370	2370	1 This paragraph shall not apply to the following:
2371	2371	2 (i) any item of intangible expenses or costs
2372	2372	3 paid, accrued, or incurred, directly or
2373	2373	4 indirectly, from a transaction with a person who
2374	2374	5 is subject in a foreign country or state, other
2375	2375	6 than a state which requires mandatory unitary
2376	2376	7 reporting, to a tax on or measured by net income
2377	2377	8 with respect to such item; or
2378	2378	9 (ii) any item of intangible expense or cost
2379	2379	10 paid, accrued, or incurred, directly or
2380	2380	11 indirectly, if the taxpayer can establish, based
2381	2381	12 on a preponderance of the evidence, both of the
2382	2382	13 following:
2383	2383	14 (a) the person during the same taxable
2384	2384	15 year paid, accrued, or incurred, the
2385	2385	16 intangible expense or cost to a person that is
2386	2386	17 not a related member, and
2387	2387	18 (b) the transaction giving rise to the
2388	2388	19 intangible expense or cost between the
2389	2389	20 taxpayer and the person did not have as a
2390	2390	21 principal purpose the avoidance of Illinois
2391	2391	22 income tax, and is paid pursuant to a contract
2392	2392	23 or agreement that reflects arm's-length terms;
2393	2393	24 or
2394	2394	25 (iii) any item of intangible expense or cost
2395	2395	26 paid, accrued, or incurred, directly or
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400
2401	2401	SB1313 - 66 - LRB103 28169 HLH 54548 b
2402	2402
2403	2403
2404	2404	SB1313- 67 -LRB103 28169 HLH 54548 b SB1313 - 67 - LRB103 28169 HLH 54548 b
2405	2405	SB1313 - 67 - LRB103 28169 HLH 54548 b
2406	2406	1 indirectly, from a transaction with a person if
2407	2407	2 the taxpayer establishes by clear and convincing
2408	2408	3 evidence, that the adjustments are unreasonable;
2409	2409	4 or if the taxpayer and the Director agree in
2410	2410	5 writing to the application or use of an
2411	2411	6 alternative method of apportionment under Section
2412	2412	7 304(f);
2413	2413	8 Nothing in this subsection shall preclude the
2414	2414	9 Director from making any other adjustment
2415	2415	10 otherwise allowed under Section 404 of this Act
2416	2416	11 for any tax year beginning after the effective
2417	2417	12 date of this amendment provided such adjustment is
2418	2418	13 made pursuant to regulation adopted by the
2419	2419	14 Department and such regulations provide methods
2420	2420	15 and standards by which the Department will utilize
2421	2421	16 its authority under Section 404 of this Act;
2422	2422	17 (G-14) For taxable years ending on or after
2423	2423	18 December 31, 2008, an amount equal to the amount of
2424	2424	19 insurance premium expenses and costs otherwise allowed
2425	2425	20 as a deduction in computing base income, and that were
2426	2426	21 paid, accrued, or incurred, directly or indirectly, to
2427	2427	22 a person who would be a member of the same unitary
2428	2428	23 business group but for the fact that the person is
2429	2429	24 prohibited under Section 1501(a)(27) from being
2430	2430	25 included in the unitary business group because he or
2431	2431	26 she is ordinarily required to apportion business
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436
2437	2437	SB1313 - 67 - LRB103 28169 HLH 54548 b
2438	2438
2439	2439
2440	2440	SB1313- 68 -LRB103 28169 HLH 54548 b SB1313 - 68 - LRB103 28169 HLH 54548 b
2441	2441	SB1313 - 68 - LRB103 28169 HLH 54548 b
2442	2442	1 income under different subsections of Section 304. The
2443	2443	2 addition modification required by this subparagraph
2444	2444	3 shall be reduced to the extent that dividends were
2445	2445	4 included in base income of the unitary group for the
2446	2446	5 same taxable year and received by the taxpayer or by a
2447	2447	6 member of the taxpayer's unitary business group
2448	2448	7 (including amounts included in gross income under
2449	2449	8 Sections 951 through 964 of the Internal Revenue Code
2450	2450	9 and amounts included in gross income under Section 78
2451	2451	10 of the Internal Revenue Code) with respect to the
2452	2452	11 stock of the same person to whom the premiums and costs
2453	2453	12 were directly or indirectly paid, incurred, or
2454	2454	13 accrued. The preceding sentence does not apply to the
2455	2455	14 extent that the same dividends caused a reduction to
2456	2456	15 the addition modification required under Section
2457	2457	16 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2458	2458	17 Act;
2459	2459	18 (G-15) An amount equal to the credit allowable to
2460	2460	19 the taxpayer under Section 218(a) of this Act,
2461	2461	20 determined without regard to Section 218(c) of this
2462	2462	21 Act;
2463	2463	22 (G-16) For taxable years ending on or after
2464	2464	23 December 31, 2017, an amount equal to the deduction
2465	2465	24 allowed under Section 199 of the Internal Revenue Code
2466	2466	25 for the taxable year;
2467	2467	26 and by deducting from the total so obtained the sum of the
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472
2473	2473	SB1313 - 68 - LRB103 28169 HLH 54548 b
2474	2474
2475	2475
2476	2476	SB1313- 69 -LRB103 28169 HLH 54548 b SB1313 - 69 - LRB103 28169 HLH 54548 b
2477	2477	SB1313 - 69 - LRB103 28169 HLH 54548 b
2478	2478	1 following amounts:
2479	2479	2 (H) An amount equal to all amounts included in
2480	2480	3 such total pursuant to the provisions of Sections
2481	2481	4 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2482	2482	5 of the Internal Revenue Code or included in such total
2483	2483	6 as distributions under the provisions of any
2484	2484	7 retirement or disability plan for employees of any
2485	2485	8 governmental agency or unit, or retirement payments to
2486	2486	9 retired partners, which payments are excluded in
2487	2487	10 computing net earnings from self employment by Section
2488	2488	11 1402 of the Internal Revenue Code and regulations
2489	2489	12 adopted pursuant thereto;
2490	2490	13 (I) The valuation limitation amount;
2491	2491	14 (J) An amount equal to the amount of any tax
2492	2492	15 imposed by this Act which was refunded to the taxpayer
2493	2493	16 and included in such total for the taxable year;
2494	2494	17 (K) An amount equal to all amounts included in
2495	2495	18 taxable income as modified by subparagraphs (A), (B),
2496	2496	19 (C), (D), (E), (F) and (G) which are exempt from
2497	2497	20 taxation by this State either by reason of its
2498	2498	21 statutes or Constitution or by reason of the
2499	2499	22 Constitution, treaties or statutes of the United
2500	2500	23 States; provided that, in the case of any statute of
2501	2501	24 this State that exempts income derived from bonds or
2502	2502	25 other obligations from the tax imposed under this Act,
2503	2503	26 the amount exempted shall be the interest net of bond
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508
2509	2509	SB1313 - 69 - LRB103 28169 HLH 54548 b
2510	2510
2511	2511
2512	2512	SB1313- 70 -LRB103 28169 HLH 54548 b SB1313 - 70 - LRB103 28169 HLH 54548 b
2513	2513	SB1313 - 70 - LRB103 28169 HLH 54548 b
2514	2514	1 premium amortization;
2515	2515	2 (L) With the exception of any amounts subtracted
2516	2516	3 under subparagraph (K), an amount equal to the sum of
2517	2517	4 all amounts disallowed as deductions by (i) Sections
2518	2518	5 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2519	2519	6 and all amounts of expenses allocable to interest and
2520	2520	7 disallowed as deductions by Section 265(a)(1) of the
2521	2521	8 Internal Revenue Code; and (ii) for taxable years
2522	2522	9 ending on or after August 13, 1999, Sections
2523	2523	10 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2524	2524	11 Internal Revenue Code, plus, (iii) for taxable years
2525	2525	12 ending on or after December 31, 2011, Section
2526	2526	13 45G(e)(3) of the Internal Revenue Code and, for
2527	2527	14 taxable years ending on or after December 31, 2008,
2528	2528	15 any amount included in gross income under Section 87
2529	2529	16 of the Internal Revenue Code; the provisions of this
2530	2530	17 subparagraph are exempt from the provisions of Section
2531	2531	18 250;
2532	2532	19 (M) An amount equal to those dividends included in
2533	2533	20 such total which were paid by a corporation which
2534	2534	21 conducts business operations in a River Edge
2535	2535	22 Redevelopment Zone or zones created under the River
2536	2536	23 Edge Redevelopment Zone Act and conducts substantially
2537	2537	24 all of its operations in a River Edge Redevelopment
2538	2538	25 Zone or zones. This subparagraph (M) is exempt from
2539	2539	26 the provisions of Section 250;
2540	2540
2541	2541
2542	2542
2543	2543
2544	2544
2545	2545	SB1313 - 70 - LRB103 28169 HLH 54548 b
2546	2546
2547	2547
2548	2548	SB1313- 71 -LRB103 28169 HLH 54548 b SB1313 - 71 - LRB103 28169 HLH 54548 b
2549	2549	SB1313 - 71 - LRB103 28169 HLH 54548 b
2550	2550	1 (N) An amount equal to any contribution made to a
2551	2551	2 job training project established pursuant to the Tax
2552	2552	3 Increment Allocation Redevelopment Act;
2553	2553	4 (O) An amount equal to those dividends included in
2554	2554	5 such total that were paid by a corporation that
2555	2555	6 conducts business operations in a federally designated
2556	2556	7 Foreign Trade Zone or Sub-Zone and that is designated
2557	2557	8 a High Impact Business located in Illinois; provided
2558	2558	9 that dividends eligible for the deduction provided in
2559	2559	10 subparagraph (M) of paragraph (2) of this subsection
2560	2560	11 shall not be eligible for the deduction provided under
2561	2561	12 this subparagraph (O);
2562	2562	13 (P) An amount equal to the amount of the deduction
2563	2563	14 used to compute the federal income tax credit for
2564	2564	15 restoration of substantial amounts held under claim of
2565	2565	16 right for the taxable year pursuant to Section 1341 of
2566	2566	17 the Internal Revenue Code;
2567	2567	18 (Q) For taxable year 1999 and thereafter, an
2568	2568	19 amount equal to the amount of any (i) distributions,
2569	2569	20 to the extent includible in gross income for federal
2570	2570	21 income tax purposes, made to the taxpayer because of
2571	2571	22 his or her status as a victim of persecution for racial
2572	2572	23 or religious reasons by Nazi Germany or any other Axis
2573	2573	24 regime or as an heir of the victim and (ii) items of
2574	2574	25 income, to the extent includible in gross income for
2575	2575	26 federal income tax purposes, attributable to, derived
2576	2576
2577	2577
2578	2578
2579	2579
2580	2580
2581	2581	SB1313 - 71 - LRB103 28169 HLH 54548 b
2582	2582
2583	2583
2584	2584	SB1313- 72 -LRB103 28169 HLH 54548 b SB1313 - 72 - LRB103 28169 HLH 54548 b
2585	2585	SB1313 - 72 - LRB103 28169 HLH 54548 b
2586	2586	1 from or in any way related to assets stolen from,
2587	2587	2 hidden from, or otherwise lost to a victim of
2588	2588	3 persecution for racial or religious reasons by Nazi
2589	2589	4 Germany or any other Axis regime immediately prior to,
2590	2590	5 during, and immediately after World War II, including,
2591	2591	6 but not limited to, interest on the proceeds
2592	2592	7 receivable as insurance under policies issued to a
2593	2593	8 victim of persecution for racial or religious reasons
2594	2594	9 by Nazi Germany or any other Axis regime by European
2595	2595	10 insurance companies immediately prior to and during
2596	2596	11 World War II; provided, however, this subtraction from
2597	2597	12 federal adjusted gross income does not apply to assets
2598	2598	13 acquired with such assets or with the proceeds from
2599	2599	14 the sale of such assets; provided, further, this
2600	2600	15 paragraph shall only apply to a taxpayer who was the
2601	2601	16 first recipient of such assets after their recovery
2602	2602	17 and who is a victim of persecution for racial or
2603	2603	18 religious reasons by Nazi Germany or any other Axis
2604	2604	19 regime or as an heir of the victim. The amount of and
2605	2605	20 the eligibility for any public assistance, benefit, or
2606	2606	21 similar entitlement is not affected by the inclusion
2607	2607	22 of items (i) and (ii) of this paragraph in gross income
2608	2608	23 for federal income tax purposes. This paragraph is
2609	2609	24 exempt from the provisions of Section 250;
2610	2610	25 (R) For taxable years 2001 and thereafter, for the
2611	2611	26 taxable year in which the bonus depreciation deduction
2612	2612
2613	2613
2614	2614
2615	2615
2616	2616
2617	2617	SB1313 - 72 - LRB103 28169 HLH 54548 b
2618	2618
2619	2619
2620	2620	SB1313- 73 -LRB103 28169 HLH 54548 b SB1313 - 73 - LRB103 28169 HLH 54548 b
2621	2621	SB1313 - 73 - LRB103 28169 HLH 54548 b
2622	2622	1 is taken on the taxpayer's federal income tax return
2623	2623	2 under subsection (k) of Section 168 of the Internal
2624	2624	3 Revenue Code and for each applicable taxable year
2625	2625	4 thereafter, an amount equal to "x", where:
2626	2626	5 (1) "y" equals the amount of the depreciation
2627	2627	6 deduction taken for the taxable year on the
2628	2628	7 taxpayer's federal income tax return on property
2629	2629	8 for which the bonus depreciation deduction was
2630	2630	9 taken in any year under subsection (k) of Section
2631	2631	10 168 of the Internal Revenue Code, but not
2632	2632	11 including the bonus depreciation deduction;
2633	2633	12 (2) for taxable years ending on or before
2634	2634	13 December 31, 2005, "x" equals "y" multiplied by 30
2635	2635	14 and then divided by 70 (or "y" multiplied by
2636	2636	15 0.429); and
2637	2637	16 (3) for taxable years ending after December
2638	2638	17 31, 2005:
2639	2639	18 (i) for property on which a bonus
2640	2640	19 depreciation deduction of 30% of the adjusted
2641	2641	20 basis was taken, "x" equals "y" multiplied by
2642	2642	21 30 and then divided by 70 (or "y" multiplied
2643	2643	22 by 0.429);
2644	2644	23 (ii) for property on which a bonus
2645	2645	24 depreciation deduction of 50% of the adjusted
2646	2646	25 basis was taken, "x" equals "y" multiplied by
2647	2647	26 1.0;
2648	2648
2649	2649
2650	2650
2651	2651
2652	2652
2653	2653	SB1313 - 73 - LRB103 28169 HLH 54548 b
2654	2654
2655	2655
2656	2656	SB1313- 74 -LRB103 28169 HLH 54548 b SB1313 - 74 - LRB103 28169 HLH 54548 b
2657	2657	SB1313 - 74 - LRB103 28169 HLH 54548 b
2658	2658	1 (iii) for property on which a bonus
2659	2659	2 depreciation deduction of 100% of the adjusted
2660	2660	3 basis was taken in a taxable year ending on or
2661	2661	4 after December 31, 2021, "x" equals the
2662	2662	5 depreciation deduction that would be allowed
2663	2663	6 on that property if the taxpayer had made the
2664	2664	7 election under Section 168(k)(7) of the
2665	2665	8 Internal Revenue Code to not claim bonus
2666	2666	9 depreciation on that property; and
2667	2667	10 (iv) for property on which a bonus
2668	2668	11 depreciation deduction of a percentage other
2669	2669	12 than 30%, 50% or 100% of the adjusted basis
2670	2670	13 was taken in a taxable year ending on or after
2671	2671	14 December 31, 2021, "x" equals "y" multiplied
2672	2672	15 by 100 times the percentage bonus depreciation
2673	2673	16 on the property (that is, 100(bonus%)) and
2674	2674	17 then divided by 100 times 1 minus the
2675	2675	18 percentage bonus depreciation on the property
2676	2676	19 (that is, 100(1bonus%)).
2677	2677	20 The aggregate amount deducted under this
2678	2678	21 subparagraph in all taxable years for any one piece of
2679	2679	22 property may not exceed the amount of the bonus
2680	2680	23 depreciation deduction taken on that property on the
2681	2681	24 taxpayer's federal income tax return under subsection
2682	2682	25 (k) of Section 168 of the Internal Revenue Code. This
2683	2683	26 subparagraph (R) is exempt from the provisions of
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688
2689	2689	SB1313 - 74 - LRB103 28169 HLH 54548 b
2690	2690
2691	2691
2692	2692	SB1313- 75 -LRB103 28169 HLH 54548 b SB1313 - 75 - LRB103 28169 HLH 54548 b
2693	2693	SB1313 - 75 - LRB103 28169 HLH 54548 b
2694	2694	1 Section 250;
2695	2695	2 (S) If the taxpayer sells, transfers, abandons, or
2696	2696	3 otherwise disposes of property for which the taxpayer
2697	2697	4 was required in any taxable year to make an addition
2698	2698	5 modification under subparagraph (G-10), then an amount
2699	2699	6 equal to that addition modification.
2700	2700	7 If the taxpayer continues to own property through
2701	2701	8 the last day of the last tax year for which a
2702	2702	9 subtraction is allowed with respect to that property
2703	2703	10 under subparagraph (R) and for which the taxpayer was
2704	2704	11 required in any taxable year to make an addition
2705	2705	12 modification under subparagraph (G-10), then an amount
2706	2706	13 equal to that addition modification.
2707	2707	14 The taxpayer is allowed to take the deduction
2708	2708	15 under this subparagraph only once with respect to any
2709	2709	16 one piece of property.
2710	2710	17 This subparagraph (S) is exempt from the
2711	2711	18 provisions of Section 250;
2712	2712	19 (T) The amount of (i) any interest income (net of
2713	2713	20 the deductions allocable thereto) taken into account
2714	2714	21 for the taxable year with respect to a transaction
2715	2715	22 with a taxpayer that is required to make an addition
2716	2716	23 modification with respect to such transaction under
2717	2717	24 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2718	2718	25 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2719	2719	26 the amount of such addition modification and (ii) any
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724
2725	2725	SB1313 - 75 - LRB103 28169 HLH 54548 b
2726	2726
2727	2727
2728	2728	SB1313- 76 -LRB103 28169 HLH 54548 b SB1313 - 76 - LRB103 28169 HLH 54548 b
2729	2729	SB1313 - 76 - LRB103 28169 HLH 54548 b
2730	2730	1 income from intangible property (net of the deductions
2731	2731	2 allocable thereto) taken into account for the taxable
2732	2732	3 year with respect to a transaction with a taxpayer
2733	2733	4 that is required to make an addition modification with
2734	2734	5 respect to such transaction under Section
2735	2735	6 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2736	2736	7 203(d)(2)(D-8), but not to exceed the amount of such
2737	2737	8 addition modification. This subparagraph (T) is exempt
2738	2738	9 from the provisions of Section 250;
2739	2739	10 (U) An amount equal to the interest income taken
2740	2740	11 into account for the taxable year (net of the
2741	2741	12 deductions allocable thereto) with respect to
2742	2742	13 transactions with (i) a foreign person who would be a
2743	2743	14 member of the taxpayer's unitary business group but
2744	2744	15 for the fact the foreign person's business activity
2745	2745	16 outside the United States is 80% or more of that
2746	2746	17 person's total business activity and (ii) for taxable
2747	2747	18 years ending on or after December 31, 2008, to a person
2748	2748	19 who would be a member of the same unitary business
2749	2749	20 group but for the fact that the person is prohibited
2750	2750	21 under Section 1501(a)(27) from being included in the
2751	2751	22 unitary business group because he or she is ordinarily
2752	2752	23 required to apportion business income under different
2753	2753	24 subsections of Section 304, but not to exceed the
2754	2754	25 addition modification required to be made for the same
2755	2755	26 taxable year under Section 203(c)(2)(G-12) for
2756	2756
2757	2757
2758	2758
2759	2759
2760	2760
2761	2761	SB1313 - 76 - LRB103 28169 HLH 54548 b
2762	2762
2763	2763
2764	2764	SB1313- 77 -LRB103 28169 HLH 54548 b SB1313 - 77 - LRB103 28169 HLH 54548 b
2765	2765	SB1313 - 77 - LRB103 28169 HLH 54548 b
2766	2766	1 interest paid, accrued, or incurred, directly or
2767	2767	2 indirectly, to the same person. This subparagraph (U)
2768	2768	3 is exempt from the provisions of Section 250;
2769	2769	4 (V) An amount equal to the income from intangible
2770	2770	5 property taken into account for the taxable year (net
2771	2771	6 of the deductions allocable thereto) with respect to
2772	2772	7 transactions with (i) a foreign person who would be a
2773	2773	8 member of the taxpayer's unitary business group but
2774	2774	9 for the fact that the foreign person's business
2775	2775	10 activity outside the United States is 80% or more of
2776	2776	11 that person's total business activity and (ii) for
2777	2777	12 taxable years ending on or after December 31, 2008, to
2778	2778	13 a person who would be a member of the same unitary
2779	2779	14 business group but for the fact that the person is
2780	2780	15 prohibited under Section 1501(a)(27) from being
2781	2781	16 included in the unitary business group because he or
2782	2782	17 she is ordinarily required to apportion business
2783	2783	18 income under different subsections of Section 304, but
2784	2784	19 not to exceed the addition modification required to be
2785	2785	20 made for the same taxable year under Section
2786	2786	21 203(c)(2)(G-13) for intangible expenses and costs
2787	2787	22 paid, accrued, or incurred, directly or indirectly, to
2788	2788	23 the same foreign person. This subparagraph (V) is
2789	2789	24 exempt from the provisions of Section 250;
2790	2790	25 (W) in the case of an estate, an amount equal to
2791	2791	26 all amounts included in such total pursuant to the
2792	2792
2793	2793
2794	2794
2795	2795
2796	2796
2797	2797	SB1313 - 77 - LRB103 28169 HLH 54548 b
2798	2798
2799	2799
2800	2800	SB1313- 78 -LRB103 28169 HLH 54548 b SB1313 - 78 - LRB103 28169 HLH 54548 b
2801	2801	SB1313 - 78 - LRB103 28169 HLH 54548 b
2802	2802	1 provisions of Section 111 of the Internal Revenue Code
2803	2803	2 as a recovery of items previously deducted by the
2804	2804	3 decedent from adjusted gross income in the computation
2805	2805	4 of taxable income. This subparagraph (W) is exempt
2806	2806	5 from Section 250;
2807	2807	6 (X) an amount equal to the refund included in such
2808	2808	7 total of any tax deducted for federal income tax
2809	2809	8 purposes, to the extent that deduction was added back
2810	2810	9 under subparagraph (F). This subparagraph (X) is
2811	2811	10 exempt from the provisions of Section 250;
2812	2812	11 (Y) For taxable years ending on or after December
2813	2813	12 31, 2011, in the case of a taxpayer who was required to
2814	2814	13 add back any insurance premiums under Section
2815	2815	14 203(c)(2)(G-14), such taxpayer may elect to subtract
2816	2816	15 that part of a reimbursement received from the
2817	2817	16 insurance company equal to the amount of the expense
2818	2818	17 or loss (including expenses incurred by the insurance
2819	2819	18 company) that would have been taken into account as a
2820	2820	19 deduction for federal income tax purposes if the
2821	2821	20 expense or loss had been uninsured. If a taxpayer
2822	2822	21 makes the election provided for by this subparagraph
2823	2823	22 (Y), the insurer to which the premiums were paid must
2824	2824	23 add back to income the amount subtracted by the
2825	2825	24 taxpayer pursuant to this subparagraph (Y). This
2826	2826	25 subparagraph (Y) is exempt from the provisions of
2827	2827	26 Section 250; and
2828	2828
2829	2829
2830	2830
2831	2831
2832	2832
2833	2833	SB1313 - 78 - LRB103 28169 HLH 54548 b
2834	2834
2835	2835
2836	2836	SB1313- 79 -LRB103 28169 HLH 54548 b SB1313 - 79 - LRB103 28169 HLH 54548 b
2837	2837	SB1313 - 79 - LRB103 28169 HLH 54548 b
2838	2838	1 (Z) For taxable years beginning after December 31,
2839	2839	2 2018 and before January 1, 2026, the amount of excess
2840	2840	3 business loss of the taxpayer disallowed as a
2841	2841	4 deduction by Section 461(l)(1)(B) of the Internal
2842	2842	5 Revenue Code; and .
2843	2843	6 (AA) For taxable years beginning on or after
2844	2844	7 January 1, 2023, any amount paid by the taxpayer's
2845	2845	8 employer on behalf of the taxpayer as part of an
2846	2846	9 educational assistance program, as defined in Section
2847	2847	10 127 of the Internal Revenue Code, regardless of
2848	2848	11 whether those amounts are included in the taxpayer's
2849	2849	12 federal adjusted gross income for the taxable year;
2850	2850	13 the deduction under this subparagraph shall apply only
2851	2851	14 to the first $5,250 of such assistance so furnished to
2852	2852	15 any individual; this subparagraph is exempt from the
2853	2853	16 provisions of Section 250.
2854	2854	17 (3) Limitation. The amount of any modification
2855	2855	18 otherwise required under this subsection shall, under
2856	2856	19 regulations prescribed by the Department, be adjusted by
2857	2857	20 any amounts included therein which were properly paid,
2858	2858	21 credited, or required to be distributed, or permanently
2859	2859	22 set aside for charitable purposes pursuant to Internal
2860	2860	23 Revenue Code Section 642(c) during the taxable year.
2861	2861	24 (d) Partnerships.
2862	2862	25 (1) In general. In the case of a partnership, base
2863	2863
2864	2864
2865	2865
2866	2866
2867	2867
2868	2868	SB1313 - 79 - LRB103 28169 HLH 54548 b
2869	2869
2870	2870
2871	2871	SB1313- 80 -LRB103 28169 HLH 54548 b SB1313 - 80 - LRB103 28169 HLH 54548 b
2872	2872	SB1313 - 80 - LRB103 28169 HLH 54548 b
2873	2873	1 income means an amount equal to the taxpayer's taxable
2874	2874	2 income for the taxable year as modified by paragraph (2).
2875	2875	3 (2) Modifications. The taxable income referred to in
2876	2876	4 paragraph (1) shall be modified by adding thereto the sum
2877	2877	5 of the following amounts:
2878	2878	6 (A) An amount equal to all amounts paid or accrued
2879	2879	7 to the taxpayer as interest or dividends during the
2880	2880	8 taxable year to the extent excluded from gross income
2881	2881	9 in the computation of taxable income;
2882	2882	10 (B) An amount equal to the amount of tax imposed by
2883	2883	11 this Act to the extent deducted from gross income for
2884	2884	12 the taxable year;
2885	2885	13 (C) The amount of deductions allowed to the
2886	2886	14 partnership pursuant to Section 707 (c) of the
2887	2887	15 Internal Revenue Code in calculating its taxable
2888	2888	16 income;
2889	2889	17 (D) An amount equal to the amount of the capital
2890	2890	18 gain deduction allowable under the Internal Revenue
2891	2891	19 Code, to the extent deducted from gross income in the
2892	2892	20 computation of taxable income;
2893	2893	21 (D-5) For taxable years 2001 and thereafter, an
2894	2894	22 amount equal to the bonus depreciation deduction taken
2895	2895	23 on the taxpayer's federal income tax return for the
2896	2896	24 taxable year under subsection (k) of Section 168 of
2897	2897	25 the Internal Revenue Code;
2898	2898	26 (D-6) If the taxpayer sells, transfers, abandons,
2899	2899
2900	2900
2901	2901
2902	2902
2903	2903
2904	2904	SB1313 - 80 - LRB103 28169 HLH 54548 b
2905	2905
2906	2906
2907	2907	SB1313- 81 -LRB103 28169 HLH 54548 b SB1313 - 81 - LRB103 28169 HLH 54548 b
2908	2908	SB1313 - 81 - LRB103 28169 HLH 54548 b
2909	2909	1 or otherwise disposes of property for which the
2910	2910	2 taxpayer was required in any taxable year to make an
2911	2911	3 addition modification under subparagraph (D-5), then
2912	2912	4 an amount equal to the aggregate amount of the
2913	2913	5 deductions taken in all taxable years under
2914	2914	6 subparagraph (O) with respect to that property.
2915	2915	7 If the taxpayer continues to own property through
2916	2916	8 the last day of the last tax year for which a
2917	2917	9 subtraction is allowed with respect to that property
2918	2918	10 under subparagraph (O) and for which the taxpayer was
2919	2919	11 allowed in any taxable year to make a subtraction
2920	2920	12 modification under subparagraph (O), then an amount
2921	2921	13 equal to that subtraction modification.
2922	2922	14 The taxpayer is required to make the addition
2923	2923	15 modification under this subparagraph only once with
2924	2924	16 respect to any one piece of property;
2925	2925	17 (D-7) An amount equal to the amount otherwise
2926	2926	18 allowed as a deduction in computing base income for
2927	2927	19 interest paid, accrued, or incurred, directly or
2928	2928	20 indirectly, (i) for taxable years ending on or after
2929	2929	21 December 31, 2004, to a foreign person who would be a
2930	2930	22 member of the same unitary business group but for the
2931	2931	23 fact the foreign person's business activity outside
2932	2932	24 the United States is 80% or more of the foreign
2933	2933	25 person's total business activity and (ii) for taxable
2934	2934	26 years ending on or after December 31, 2008, to a person
2935	2935
2936	2936
2937	2937
2938	2938
2939	2939
2940	2940	SB1313 - 81 - LRB103 28169 HLH 54548 b
2941	2941
2942	2942
2943	2943	SB1313- 82 -LRB103 28169 HLH 54548 b SB1313 - 82 - LRB103 28169 HLH 54548 b
2944	2944	SB1313 - 82 - LRB103 28169 HLH 54548 b
2945	2945	1 who would be a member of the same unitary business
2946	2946	2 group but for the fact that the person is prohibited
2947	2947	3 under Section 1501(a)(27) from being included in the
2948	2948	4 unitary business group because he or she is ordinarily
2949	2949	5 required to apportion business income under different
2950	2950	6 subsections of Section 304. The addition modification
2951	2951	7 required by this subparagraph shall be reduced to the
2952	2952	8 extent that dividends were included in base income of
2953	2953	9 the unitary group for the same taxable year and
2954	2954	10 received by the taxpayer or by a member of the
2955	2955	11 taxpayer's unitary business group (including amounts
2956	2956	12 included in gross income pursuant to Sections 951
2957	2957	13 through 964 of the Internal Revenue Code and amounts
2958	2958	14 included in gross income under Section 78 of the
2959	2959	15 Internal Revenue Code) with respect to the stock of
2960	2960	16 the same person to whom the interest was paid,
2961	2961	17 accrued, or incurred.
2962	2962	18 This paragraph shall not apply to the following:
2963	2963	19 (i) an item of interest paid, accrued, or
2964	2964	20 incurred, directly or indirectly, to a person who
2965	2965	21 is subject in a foreign country or state, other
2966	2966	22 than a state which requires mandatory unitary
2967	2967	23 reporting, to a tax on or measured by net income
2968	2968	24 with respect to such interest; or
2969	2969	25 (ii) an item of interest paid, accrued, or
2970	2970	26 incurred, directly or indirectly, to a person if
2971	2971
2972	2972
2973	2973
2974	2974
2975	2975
2976	2976	SB1313 - 82 - LRB103 28169 HLH 54548 b
2977	2977
2978	2978
2979	2979	SB1313- 83 -LRB103 28169 HLH 54548 b SB1313 - 83 - LRB103 28169 HLH 54548 b
2980	2980	SB1313 - 83 - LRB103 28169 HLH 54548 b
2981	2981	1 the taxpayer can establish, based on a
2982	2982	2 preponderance of the evidence, both of the
2983	2983	3 following:
2984	2984	4 (a) the person, during the same taxable
2985	2985	5 year, paid, accrued, or incurred, the interest
2986	2986	6 to a person that is not a related member, and
2987	2987	7 (b) the transaction giving rise to the
2988	2988	8 interest expense between the taxpayer and the
2989	2989	9 person did not have as a principal purpose the
2990	2990	10 avoidance of Illinois income tax, and is paid
2991	2991	11 pursuant to a contract or agreement that
2992	2992	12 reflects an arm's-length interest rate and
2993	2993	13 terms; or
2994	2994	14 (iii) the taxpayer can establish, based on
2995	2995	15 clear and convincing evidence, that the interest
2996	2996	16 paid, accrued, or incurred relates to a contract
2997	2997	17 or agreement entered into at arm's-length rates
2998	2998	18 and terms and the principal purpose for the
2999	2999	19 payment is not federal or Illinois tax avoidance;
3000	3000	20 or
3001	3001	21 (iv) an item of interest paid, accrued, or
3002	3002	22 incurred, directly or indirectly, to a person if
3003	3003	23 the taxpayer establishes by clear and convincing
3004	3004	24 evidence that the adjustments are unreasonable; or
3005	3005	25 if the taxpayer and the Director agree in writing
3006	3006	26 to the application or use of an alternative method
3007	3007
3008	3008
3009	3009
3010	3010
3011	3011
3012	3012	SB1313 - 83 - LRB103 28169 HLH 54548 b
3013	3013
3014	3014
3015	3015	SB1313- 84 -LRB103 28169 HLH 54548 b SB1313 - 84 - LRB103 28169 HLH 54548 b
3016	3016	SB1313 - 84 - LRB103 28169 HLH 54548 b
3017	3017	1 of apportionment under Section 304(f).
3018	3018	2 Nothing in this subsection shall preclude the
3019	3019	3 Director from making any other adjustment
3020	3020	4 otherwise allowed under Section 404 of this Act
3021	3021	5 for any tax year beginning after the effective
3022	3022	6 date of this amendment provided such adjustment is
3023	3023	7 made pursuant to regulation adopted by the
3024	3024	8 Department and such regulations provide methods
3025	3025	9 and standards by which the Department will utilize
3026	3026	10 its authority under Section 404 of this Act; and
3027	3027	11 (D-8) An amount equal to the amount of intangible
3028	3028	12 expenses and costs otherwise allowed as a deduction in
3029	3029	13 computing base income, and that were paid, accrued, or
3030	3030	14 incurred, directly or indirectly, (i) for taxable
3031	3031	15 years ending on or after December 31, 2004, to a
3032	3032	16 foreign person who would be a member of the same
3033	3033	17 unitary business group but for the fact that the
3034	3034	18 foreign person's business activity outside the United
3035	3035	19 States is 80% or more of that person's total business
3036	3036	20 activity and (ii) for taxable years ending on or after
3037	3037	21 December 31, 2008, to a person who would be a member of
3038	3038	22 the same unitary business group but for the fact that
3039	3039	23 the person is prohibited under Section 1501(a)(27)
3040	3040	24 from being included in the unitary business group
3041	3041	25 because he or she is ordinarily required to apportion
3042	3042	26 business income under different subsections of Section
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047
3048	3048	SB1313 - 84 - LRB103 28169 HLH 54548 b
3049	3049
3050	3050
3051	3051	SB1313- 85 -LRB103 28169 HLH 54548 b SB1313 - 85 - LRB103 28169 HLH 54548 b
3052	3052	SB1313 - 85 - LRB103 28169 HLH 54548 b
3053	3053	1 304. The addition modification required by this
3054	3054	2 subparagraph shall be reduced to the extent that
3055	3055	3 dividends were included in base income of the unitary
3056	3056	4 group for the same taxable year and received by the
3057	3057	5 taxpayer or by a member of the taxpayer's unitary
3058	3058	6 business group (including amounts included in gross
3059	3059	7 income pursuant to Sections 951 through 964 of the
3060	3060	8 Internal Revenue Code and amounts included in gross
3061	3061	9 income under Section 78 of the Internal Revenue Code)
3062	3062	10 with respect to the stock of the same person to whom
3063	3063	11 the intangible expenses and costs were directly or
3064	3064	12 indirectly paid, incurred or accrued. The preceding
3065	3065	13 sentence shall not apply to the extent that the same
3066	3066	14 dividends caused a reduction to the addition
3067	3067	15 modification required under Section 203(d)(2)(D-7) of
3068	3068	16 this Act. As used in this subparagraph, the term
3069	3069	17 "intangible expenses and costs" includes (1) expenses,
3070	3070	18 losses, and costs for, or related to, the direct or
3071	3071	19 indirect acquisition, use, maintenance or management,
3072	3072	20 ownership, sale, exchange, or any other disposition of
3073	3073	21 intangible property; (2) losses incurred, directly or
3074	3074	22 indirectly, from factoring transactions or discounting
3075	3075	23 transactions; (3) royalty, patent, technical, and
3076	3076	24 copyright fees; (4) licensing fees; and (5) other
3077	3077	25 similar expenses and costs. For purposes of this
3078	3078	26 subparagraph, "intangible property" includes patents,
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083
3084	3084	SB1313 - 85 - LRB103 28169 HLH 54548 b
3085	3085
3086	3086
3087	3087	SB1313- 86 -LRB103 28169 HLH 54548 b SB1313 - 86 - LRB103 28169 HLH 54548 b
3088	3088	SB1313 - 86 - LRB103 28169 HLH 54548 b
3089	3089	1 patent applications, trade names, trademarks, service
3090	3090	2 marks, copyrights, mask works, trade secrets, and
3091	3091	3 similar types of intangible assets;
3092	3092	4 This paragraph shall not apply to the following:
3093	3093	5 (i) any item of intangible expenses or costs
3094	3094	6 paid, accrued, or incurred, directly or
3095	3095	7 indirectly, from a transaction with a person who
3096	3096	8 is subject in a foreign country or state, other
3097	3097	9 than a state which requires mandatory unitary
3098	3098	10 reporting, to a tax on or measured by net income
3099	3099	11 with respect to such item; or
3100	3100	12 (ii) any item of intangible expense or cost
3101	3101	13 paid, accrued, or incurred, directly or
3102	3102	14 indirectly, if the taxpayer can establish, based
3103	3103	15 on a preponderance of the evidence, both of the
3104	3104	16 following:
3105	3105	17 (a) the person during the same taxable
3106	3106	18 year paid, accrued, or incurred, the
3107	3107	19 intangible expense or cost to a person that is
3108	3108	20 not a related member, and
3109	3109	21 (b) the transaction giving rise to the
3110	3110	22 intangible expense or cost between the
3111	3111	23 taxpayer and the person did not have as a
3112	3112	24 principal purpose the avoidance of Illinois
3113	3113	25 income tax, and is paid pursuant to a contract
3114	3114	26 or agreement that reflects arm's-length terms;
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119
3120	3120	SB1313 - 86 - LRB103 28169 HLH 54548 b
3121	3121
3122	3122
3123	3123	SB1313- 87 -LRB103 28169 HLH 54548 b SB1313 - 87 - LRB103 28169 HLH 54548 b
3124	3124	SB1313 - 87 - LRB103 28169 HLH 54548 b
3125	3125	1 or
3126	3126	2 (iii) any item of intangible expense or cost
3127	3127	3 paid, accrued, or incurred, directly or
3128	3128	4 indirectly, from a transaction with a person if
3129	3129	5 the taxpayer establishes by clear and convincing
3130	3130	6 evidence, that the adjustments are unreasonable;
3131	3131	7 or if the taxpayer and the Director agree in
3132	3132	8 writing to the application or use of an
3133	3133	9 alternative method of apportionment under Section
3134	3134	10 304(f);
3135	3135	11 Nothing in this subsection shall preclude the
3136	3136	12 Director from making any other adjustment
3137	3137	13 otherwise allowed under Section 404 of this Act
3138	3138	14 for any tax year beginning after the effective
3139	3139	15 date of this amendment provided such adjustment is
3140	3140	16 made pursuant to regulation adopted by the
3141	3141	17 Department and such regulations provide methods
3142	3142	18 and standards by which the Department will utilize
3143	3143	19 its authority under Section 404 of this Act;
3144	3144	20 (D-9) For taxable years ending on or after
3145	3145	21 December 31, 2008, an amount equal to the amount of
3146	3146	22 insurance premium expenses and costs otherwise allowed
3147	3147	23 as a deduction in computing base income, and that were
3148	3148	24 paid, accrued, or incurred, directly or indirectly, to
3149	3149	25 a person who would be a member of the same unitary
3150	3150	26 business group but for the fact that the person is
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155
3156	3156	SB1313 - 87 - LRB103 28169 HLH 54548 b
3157	3157
3158	3158
3159	3159	SB1313- 88 -LRB103 28169 HLH 54548 b SB1313 - 88 - LRB103 28169 HLH 54548 b
3160	3160	SB1313 - 88 - LRB103 28169 HLH 54548 b
3161	3161	1 prohibited under Section 1501(a)(27) from being
3162	3162	2 included in the unitary business group because he or
3163	3163	3 she is ordinarily required to apportion business
3164	3164	4 income under different subsections of Section 304. The
3165	3165	5 addition modification required by this subparagraph
3166	3166	6 shall be reduced to the extent that dividends were
3167	3167	7 included in base income of the unitary group for the
3168	3168	8 same taxable year and received by the taxpayer or by a
3169	3169	9 member of the taxpayer's unitary business group
3170	3170	10 (including amounts included in gross income under
3171	3171	11 Sections 951 through 964 of the Internal Revenue Code
3172	3172	12 and amounts included in gross income under Section 78
3173	3173	13 of the Internal Revenue Code) with respect to the
3174	3174	14 stock of the same person to whom the premiums and costs
3175	3175	15 were directly or indirectly paid, incurred, or
3176	3176	16 accrued. The preceding sentence does not apply to the
3177	3177	17 extent that the same dividends caused a reduction to
3178	3178	18 the addition modification required under Section
3179	3179	19 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
3180	3180	20 (D-10) An amount equal to the credit allowable to
3181	3181	21 the taxpayer under Section 218(a) of this Act,
3182	3182	22 determined without regard to Section 218(c) of this
3183	3183	23 Act;
3184	3184	24 (D-11) For taxable years ending on or after
3185	3185	25 December 31, 2017, an amount equal to the deduction
3186	3186	26 allowed under Section 199 of the Internal Revenue Code
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191
3192	3192	SB1313 - 88 - LRB103 28169 HLH 54548 b
3193	3193
3194	3194
3195	3195	SB1313- 89 -LRB103 28169 HLH 54548 b SB1313 - 89 - LRB103 28169 HLH 54548 b
3196	3196	SB1313 - 89 - LRB103 28169 HLH 54548 b
3197	3197	1 for the taxable year;
3198	3198	2 and by deducting from the total so obtained the following
3199	3199	3 amounts:
3200	3200	4 (E) The valuation limitation amount;
3201	3201	5 (F) An amount equal to the amount of any tax
3202	3202	6 imposed by this Act which was refunded to the taxpayer
3203	3203	7 and included in such total for the taxable year;
3204	3204	8 (G) An amount equal to all amounts included in
3205	3205	9 taxable income as modified by subparagraphs (A), (B),
3206	3206	10 (C) and (D) which are exempt from taxation by this
3207	3207	11 State either by reason of its statutes or Constitution
3208	3208	12 or by reason of the Constitution, treaties or statutes
3209	3209	13 of the United States; provided that, in the case of any
3210	3210	14 statute of this State that exempts income derived from
3211	3211	15 bonds or other obligations from the tax imposed under
3212	3212	16 this Act, the amount exempted shall be the interest
3213	3213	17 net of bond premium amortization;
3214	3214	18 (H) Any income of the partnership which
3215	3215	19 constitutes personal service income as defined in
3216	3216	20 Section 1348(b)(1) of the Internal Revenue Code (as in
3217	3217	21 effect December 31, 1981) or a reasonable allowance
3218	3218	22 for compensation paid or accrued for services rendered
3219	3219	23 by partners to the partnership, whichever is greater;
3220	3220	24 this subparagraph (H) is exempt from the provisions of
3221	3221	25 Section 250;
3222	3222	26 (I) An amount equal to all amounts of income
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227
3228	3228	SB1313 - 89 - LRB103 28169 HLH 54548 b
3229	3229
3230	3230
3231	3231	SB1313- 90 -LRB103 28169 HLH 54548 b SB1313 - 90 - LRB103 28169 HLH 54548 b
3232	3232	SB1313 - 90 - LRB103 28169 HLH 54548 b
3233	3233	1 distributable to an entity subject to the Personal
3234	3234	2 Property Tax Replacement Income Tax imposed by
3235	3235	3 subsections (c) and (d) of Section 201 of this Act
3236	3236	4 including amounts distributable to organizations
3237	3237	5 exempt from federal income tax by reason of Section
3238	3238	6 501(a) of the Internal Revenue Code; this subparagraph
3239	3239	7 (I) is exempt from the provisions of Section 250;
3240	3240	8 (J) With the exception of any amounts subtracted
3241	3241	9 under subparagraph (G), an amount equal to the sum of
3242	3242	10 all amounts disallowed as deductions by (i) Sections
3243	3243	11 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3244	3244	12 and all amounts of expenses allocable to interest and
3245	3245	13 disallowed as deductions by Section 265(a)(1) of the
3246	3246	14 Internal Revenue Code; and (ii) for taxable years
3247	3247	15 ending on or after August 13, 1999, Sections
3248	3248	16 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3249	3249	17 Internal Revenue Code, plus, (iii) for taxable years
3250	3250	18 ending on or after December 31, 2011, Section
3251	3251	19 45G(e)(3) of the Internal Revenue Code and, for
3252	3252	20 taxable years ending on or after December 31, 2008,
3253	3253	21 any amount included in gross income under Section 87
3254	3254	22 of the Internal Revenue Code; the provisions of this
3255	3255	23 subparagraph are exempt from the provisions of Section
3256	3256	24 250;
3257	3257	25 (K) An amount equal to those dividends included in
3258	3258	26 such total which were paid by a corporation which
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263
3264	3264	SB1313 - 90 - LRB103 28169 HLH 54548 b
3265	3265
3266	3266
3267	3267	SB1313- 91 -LRB103 28169 HLH 54548 b SB1313 - 91 - LRB103 28169 HLH 54548 b
3268	3268	SB1313 - 91 - LRB103 28169 HLH 54548 b
3269	3269	1 conducts business operations in a River Edge
3270	3270	2 Redevelopment Zone or zones created under the River
3271	3271	3 Edge Redevelopment Zone Act and conducts substantially
3272	3272	4 all of its operations from a River Edge Redevelopment
3273	3273	5 Zone or zones. This subparagraph (K) is exempt from
3274	3274	6 the provisions of Section 250;
3275	3275	7 (L) An amount equal to any contribution made to a
3276	3276	8 job training project established pursuant to the Real
3277	3277	9 Property Tax Increment Allocation Redevelopment Act;
3278	3278	10 (M) An amount equal to those dividends included in
3279	3279	11 such total that were paid by a corporation that
3280	3280	12 conducts business operations in a federally designated
3281	3281	13 Foreign Trade Zone or Sub-Zone and that is designated
3282	3282	14 a High Impact Business located in Illinois; provided
3283	3283	15 that dividends eligible for the deduction provided in
3284	3284	16 subparagraph (K) of paragraph (2) of this subsection
3285	3285	17 shall not be eligible for the deduction provided under
3286	3286	18 this subparagraph (M);
3287	3287	19 (N) An amount equal to the amount of the deduction
3288	3288	20 used to compute the federal income tax credit for
3289	3289	21 restoration of substantial amounts held under claim of
3290	3290	22 right for the taxable year pursuant to Section 1341 of
3291	3291	23 the Internal Revenue Code;
3292	3292	24 (O) For taxable years 2001 and thereafter, for the
3293	3293	25 taxable year in which the bonus depreciation deduction
3294	3294	26 is taken on the taxpayer's federal income tax return
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299
3300	3300	SB1313 - 91 - LRB103 28169 HLH 54548 b
3301	3301
3302	3302
3303	3303	SB1313- 92 -LRB103 28169 HLH 54548 b SB1313 - 92 - LRB103 28169 HLH 54548 b
3304	3304	SB1313 - 92 - LRB103 28169 HLH 54548 b
3305	3305	1 under subsection (k) of Section 168 of the Internal
3306	3306	2 Revenue Code and for each applicable taxable year
3307	3307	3 thereafter, an amount equal to "x", where:
3308	3308	4 (1) "y" equals the amount of the depreciation
3309	3309	5 deduction taken for the taxable year on the
3310	3310	6 taxpayer's federal income tax return on property
3311	3311	7 for which the bonus depreciation deduction was
3312	3312	8 taken in any year under subsection (k) of Section
3313	3313	9 168 of the Internal Revenue Code, but not
3314	3314	10 including the bonus depreciation deduction;
3315	3315	11 (2) for taxable years ending on or before
3316	3316	12 December 31, 2005, "x" equals "y" multiplied by 30
3317	3317	13 and then divided by 70 (or "y" multiplied by
3318	3318	14 0.429); and
3319	3319	15 (3) for taxable years ending after December
3320	3320	16 31, 2005:
3321	3321	17 (i) for property on which a bonus
3322	3322	18 depreciation deduction of 30% of the adjusted
3323	3323	19 basis was taken, "x" equals "y" multiplied by
3324	3324	20 30 and then divided by 70 (or "y" multiplied
3325	3325	21 by 0.429);
3326	3326	22 (ii) for property on which a bonus
3327	3327	23 depreciation deduction of 50% of the adjusted
3328	3328	24 basis was taken, "x" equals "y" multiplied by
3329	3329	25 1.0;
3330	3330	26 (iii) for property on which a bonus
3331	3331
3332	3332
3333	3333
3334	3334
3335	3335
3336	3336	SB1313 - 92 - LRB103 28169 HLH 54548 b
3337	3337
3338	3338
3339	3339	SB1313- 93 -LRB103 28169 HLH 54548 b SB1313 - 93 - LRB103 28169 HLH 54548 b
3340	3340	SB1313 - 93 - LRB103 28169 HLH 54548 b
3341	3341	1 depreciation deduction of 100% of the adjusted
3342	3342	2 basis was taken in a taxable year ending on or
3343	3343	3 after December 31, 2021, "x" equals the
3344	3344	4 depreciation deduction that would be allowed
3345	3345	5 on that property if the taxpayer had made the
3346	3346	6 election under Section 168(k)(7) of the
3347	3347	7 Internal Revenue Code to not claim bonus
3348	3348	8 depreciation on that property; and
3349	3349	9 (iv) for property on which a bonus
3350	3350	10 depreciation deduction of a percentage other
3351	3351	11 than 30%, 50% or 100% of the adjusted basis
3352	3352	12 was taken in a taxable year ending on or after
3353	3353	13 December 31, 2021, "x" equals "y" multiplied
3354	3354	14 by 100 times the percentage bonus depreciation
3355	3355	15 on the property (that is, 100(bonus%)) and
3356	3356	16 then divided by 100 times 1 minus the
3357	3357	17 percentage bonus depreciation on the property
3358	3358	18 (that is, 100(1bonus%)).
3359	3359	19 The aggregate amount deducted under this
3360	3360	20 subparagraph in all taxable years for any one piece of
3361	3361	21 property may not exceed the amount of the bonus
3362	3362	22 depreciation deduction taken on that property on the
3363	3363	23 taxpayer's federal income tax return under subsection
3364	3364	24 (k) of Section 168 of the Internal Revenue Code. This
3365	3365	25 subparagraph (O) is exempt from the provisions of
3366	3366	26 Section 250;
3367	3367
3368	3368
3369	3369
3370	3370
3371	3371
3372	3372	SB1313 - 93 - LRB103 28169 HLH 54548 b
3373	3373
3374	3374
3375	3375	SB1313- 94 -LRB103 28169 HLH 54548 b SB1313 - 94 - LRB103 28169 HLH 54548 b
3376	3376	SB1313 - 94 - LRB103 28169 HLH 54548 b
3377	3377	1 (P) If the taxpayer sells, transfers, abandons, or
3378	3378	2 otherwise disposes of property for which the taxpayer
3379	3379	3 was required in any taxable year to make an addition
3380	3380	4 modification under subparagraph (D-5), then an amount
3381	3381	5 equal to that addition modification.
3382	3382	6 If the taxpayer continues to own property through
3383	3383	7 the last day of the last tax year for which a
3384	3384	8 subtraction is allowed with respect to that property
3385	3385	9 under subparagraph (O) and for which the taxpayer was
3386	3386	10 required in any taxable year to make an addition
3387	3387	11 modification under subparagraph (D-5), then an amount
3388	3388	12 equal to that addition modification.
3389	3389	13 The taxpayer is allowed to take the deduction
3390	3390	14 under this subparagraph only once with respect to any
3391	3391	15 one piece of property.
3392	3392	16 This subparagraph (P) is exempt from the
3393	3393	17 provisions of Section 250;
3394	3394	18 (Q) The amount of (i) any interest income (net of
3395	3395	19 the deductions allocable thereto) taken into account
3396	3396	20 for the taxable year with respect to a transaction
3397	3397	21 with a taxpayer that is required to make an addition
3398	3398	22 modification with respect to such transaction under
3399	3399	23 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3400	3400	24 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3401	3401	25 the amount of such addition modification and (ii) any
3402	3402	26 income from intangible property (net of the deductions
3403	3403
3404	3404
3405	3405
3406	3406
3407	3407
3408	3408	SB1313 - 94 - LRB103 28169 HLH 54548 b
3409	3409
3410	3410
3411	3411	SB1313- 95 -LRB103 28169 HLH 54548 b SB1313 - 95 - LRB103 28169 HLH 54548 b
3412	3412	SB1313 - 95 - LRB103 28169 HLH 54548 b
3413	3413	1 allocable thereto) taken into account for the taxable
3414	3414	2 year with respect to a transaction with a taxpayer
3415	3415	3 that is required to make an addition modification with
3416	3416	4 respect to such transaction under Section
3417	3417	5 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3418	3418	6 203(d)(2)(D-8), but not to exceed the amount of such
3419	3419	7 addition modification. This subparagraph (Q) is exempt
3420	3420	8 from Section 250;
3421	3421	9 (R) An amount equal to the interest income taken
3422	3422	10 into account for the taxable year (net of the
3423	3423	11 deductions allocable thereto) with respect to
3424	3424	12 transactions with (i) a foreign person who would be a
3425	3425	13 member of the taxpayer's unitary business group but
3426	3426	14 for the fact that the foreign person's business
3427	3427	15 activity outside the United States is 80% or more of
3428	3428	16 that person's total business activity and (ii) for
3429	3429	17 taxable years ending on or after December 31, 2008, to
3430	3430	18 a person who would be a member of the same unitary
3431	3431	19 business group but for the fact that the person is
3432	3432	20 prohibited under Section 1501(a)(27) from being
3433	3433	21 included in the unitary business group because he or
3434	3434	22 she is ordinarily required to apportion business
3435	3435	23 income under different subsections of Section 304, but
3436	3436	24 not to exceed the addition modification required to be
3437	3437	25 made for the same taxable year under Section
3438	3438	26 203(d)(2)(D-7) for interest paid, accrued, or
3439	3439
3440	3440
3441	3441
3442	3442
3443	3443
3444	3444	SB1313 - 95 - LRB103 28169 HLH 54548 b
3445	3445
3446	3446
3447	3447	SB1313- 96 -LRB103 28169 HLH 54548 b SB1313 - 96 - LRB103 28169 HLH 54548 b
3448	3448	SB1313 - 96 - LRB103 28169 HLH 54548 b
3449	3449	1 incurred, directly or indirectly, to the same person.
3450	3450	2 This subparagraph (R) is exempt from Section 250;
3451	3451	3 (S) An amount equal to the income from intangible
3452	3452	4 property taken into account for the taxable year (net
3453	3453	5 of the deductions allocable thereto) with respect to
3454	3454	6 transactions with (i) a foreign person who would be a
3455	3455	7 member of the taxpayer's unitary business group but
3456	3456	8 for the fact that the foreign person's business
3457	3457	9 activity outside the United States is 80% or more of
3458	3458	10 that person's total business activity and (ii) for
3459	3459	11 taxable years ending on or after December 31, 2008, to
3460	3460	12 a person who would be a member of the same unitary
3461	3461	13 business group but for the fact that the person is
3462	3462	14 prohibited under Section 1501(a)(27) from being
3463	3463	15 included in the unitary business group because he or
3464	3464	16 she is ordinarily required to apportion business
3465	3465	17 income under different subsections of Section 304, but
3466	3466	18 not to exceed the addition modification required to be
3467	3467	19 made for the same taxable year under Section
3468	3468	20 203(d)(2)(D-8) for intangible expenses and costs paid,
3469	3469	21 accrued, or incurred, directly or indirectly, to the
3470	3470	22 same person. This subparagraph (S) is exempt from
3471	3471	23 Section 250; and
3472	3472	24 (T) For taxable years ending on or after December
3473	3473	25 31, 2011, in the case of a taxpayer who was required to
3474	3474	26 add back any insurance premiums under Section
3475	3475
3476	3476
3477	3477
3478	3478
3479	3479
3480	3480	SB1313 - 96 - LRB103 28169 HLH 54548 b
3481	3481
3482	3482
3483	3483	SB1313- 97 -LRB103 28169 HLH 54548 b SB1313 - 97 - LRB103 28169 HLH 54548 b
3484	3484	SB1313 - 97 - LRB103 28169 HLH 54548 b
3485	3485	1 203(d)(2)(D-9), such taxpayer may elect to subtract
3486	3486	2 that part of a reimbursement received from the
3487	3487	3 insurance company equal to the amount of the expense
3488	3488	4 or loss (including expenses incurred by the insurance
3489	3489	5 company) that would have been taken into account as a
3490	3490	6 deduction for federal income tax purposes if the
3491	3491	7 expense or loss had been uninsured. If a taxpayer
3492	3492	8 makes the election provided for by this subparagraph
3493	3493	9 (T), the insurer to which the premiums were paid must
3494	3494	10 add back to income the amount subtracted by the
3495	3495	11 taxpayer pursuant to this subparagraph (T). This
3496	3496	12 subparagraph (T) is exempt from the provisions of
3497	3497	13 Section 250; and .
3498	3498	14 (U) For taxable years beginning on or after
3499	3499	15 January 1, 2023, amounts paid by the taxpayer on
3500	3500	16 behalf of an employee of the taxpayer as part of an
3501	3501	17 educational assistance program, as defined in Section
3502	3502	18 127 of the Internal Revenue Code; the deduction under
3503	3503	19 this subparagraph shall apply only to the first $5,250
3504	3504	20 of such assistance so furnished to any particular
3505	3505	21 individual; this subparagraph is exempt from the
3506	3506	22 provisions of Section 250.
3507	3507	23 (e) Gross income; adjusted gross income; taxable income.
3508	3508	24 (1) In general. Subject to the provisions of paragraph
3509	3509	25 (2) and subsection (b)(3), for purposes of this Section
3510	3510
3511	3511
3512	3512
3513	3513
3514	3514
3515	3515	SB1313 - 97 - LRB103 28169 HLH 54548 b
3516	3516
3517	3517
3518	3518	SB1313- 98 -LRB103 28169 HLH 54548 b SB1313 - 98 - LRB103 28169 HLH 54548 b
3519	3519	SB1313 - 98 - LRB103 28169 HLH 54548 b
3520	3520	1 and Section 803(e), a taxpayer's gross income, adjusted
3521	3521	2 gross income, or taxable income for the taxable year shall
3522	3522	3 mean the amount of gross income, adjusted gross income or
3523	3523	4 taxable income properly reportable for federal income tax
3524	3524	5 purposes for the taxable year under the provisions of the
3525	3525	6 Internal Revenue Code. Taxable income may be less than
3526	3526	7 zero. However, for taxable years ending on or after
3527	3527	8 December 31, 1986, net operating loss carryforwards from
3528	3528	9 taxable years ending prior to December 31, 1986, may not
3529	3529	10 exceed the sum of federal taxable income for the taxable
3530	3530	11 year before net operating loss deduction, plus the excess
3531	3531	12 of addition modifications over subtraction modifications
3532	3532	13 for the taxable year. For taxable years ending prior to
3533	3533	14 December 31, 1986, taxable income may never be an amount
3534	3534	15 in excess of the net operating loss for the taxable year as
3535	3535	16 defined in subsections (c) and (d) of Section 172 of the
3536	3536	17 Internal Revenue Code, provided that when taxable income
3537	3537	18 of a corporation (other than a Subchapter S corporation),
3538	3538	19 trust, or estate is less than zero and addition
3539	3539	20 modifications, other than those provided by subparagraph
3540	3540	21 (E) of paragraph (2) of subsection (b) for corporations or
3541	3541	22 subparagraph (E) of paragraph (2) of subsection (c) for
3542	3542	23 trusts and estates, exceed subtraction modifications, an
3543	3543	24 addition modification must be made under those
3544	3544	25 subparagraphs for any other taxable year to which the
3545	3545	26 taxable income less than zero (net operating loss) is
3546	3546
3547	3547
3548	3548
3549	3549
3550	3550
3551	3551	SB1313 - 98 - LRB103 28169 HLH 54548 b
3552	3552
3553	3553
3554	3554	SB1313- 99 -LRB103 28169 HLH 54548 b SB1313 - 99 - LRB103 28169 HLH 54548 b
3555	3555	SB1313 - 99 - LRB103 28169 HLH 54548 b
3556	3556	1 applied under Section 172 of the Internal Revenue Code or
3557	3557	2 under subparagraph (E) of paragraph (2) of this subsection
3558	3558	3 (e) applied in conjunction with Section 172 of the
3559	3559	4 Internal Revenue Code.
3560	3560	5 (2) Special rule. For purposes of paragraph (1) of
3561	3561	6 this subsection, the taxable income properly reportable
3562	3562	7 for federal income tax purposes shall mean:
3563	3563	8 (A) Certain life insurance companies. In the case
3564	3564	9 of a life insurance company subject to the tax imposed
3565	3565	10 by Section 801 of the Internal Revenue Code, life
3566	3566	11 insurance company taxable income, plus the amount of
3567	3567	12 distribution from pre-1984 policyholder surplus
3568	3568	13 accounts as calculated under Section 815a of the
3569	3569	14 Internal Revenue Code;
3570	3570	15 (B) Certain other insurance companies. In the case
3571	3571	16 of mutual insurance companies subject to the tax
3572	3572	17 imposed by Section 831 of the Internal Revenue Code,
3573	3573	18 insurance company taxable income;
3574	3574	19 (C) Regulated investment companies. In the case of
3575	3575	20 a regulated investment company subject to the tax
3576	3576	21 imposed by Section 852 of the Internal Revenue Code,
3577	3577	22 investment company taxable income;
3578	3578	23 (D) Real estate investment trusts. In the case of
3579	3579	24 a real estate investment trust subject to the tax
3580	3580	25 imposed by Section 857 of the Internal Revenue Code,
3581	3581	26 real estate investment trust taxable income;
3582	3582
3583	3583
3584	3584
3585	3585
3586	3586
3587	3587	SB1313 - 99 - LRB103 28169 HLH 54548 b
3588	3588
3589	3589
3590	3590	SB1313- 100 -LRB103 28169 HLH 54548 b SB1313 - 100 - LRB103 28169 HLH 54548 b
3591	3591	SB1313 - 100 - LRB103 28169 HLH 54548 b
3592	3592	1 (E) Consolidated corporations. In the case of a
3593	3593	2 corporation which is a member of an affiliated group
3594	3594	3 of corporations filing a consolidated income tax
3595	3595	4 return for the taxable year for federal income tax
3596	3596	5 purposes, taxable income determined as if such
3597	3597	6 corporation had filed a separate return for federal
3598	3598	7 income tax purposes for the taxable year and each
3599	3599	8 preceding taxable year for which it was a member of an
3600	3600	9 affiliated group. For purposes of this subparagraph,
3601	3601	10 the taxpayer's separate taxable income shall be
3602	3602	11 determined as if the election provided by Section
3603	3603	12 243(b)(2) of the Internal Revenue Code had been in
3604	3604	13 effect for all such years;
3605	3605	14 (F) Cooperatives. In the case of a cooperative
3606	3606	15 corporation or association, the taxable income of such
3607	3607	16 organization determined in accordance with the
3608	3608	17 provisions of Section 1381 through 1388 of the
3609	3609	18 Internal Revenue Code, but without regard to the
3610	3610	19 prohibition against offsetting losses from patronage
3611	3611	20 activities against income from nonpatronage
3612	3612	21 activities; except that a cooperative corporation or
3613	3613	22 association may make an election to follow its federal
3614	3614	23 income tax treatment of patronage losses and
3615	3615	24 nonpatronage losses. In the event such election is
3616	3616	25 made, such losses shall be computed and carried over
3617	3617	26 in a manner consistent with subsection (a) of Section
3618	3618
3619	3619
3620	3620
3621	3621
3622	3622
3623	3623	SB1313 - 100 - LRB103 28169 HLH 54548 b
3624	3624
3625	3625
3626	3626	SB1313- 101 -LRB103 28169 HLH 54548 b SB1313 - 101 - LRB103 28169 HLH 54548 b
3627	3627	SB1313 - 101 - LRB103 28169 HLH 54548 b
3628	3628	1 207 of this Act and apportioned by the apportionment
3629	3629	2 factor reported by the cooperative on its Illinois
3630	3630	3 income tax return filed for the taxable year in which
3631	3631	4 the losses are incurred. The election shall be
3632	3632	5 effective for all taxable years with original returns
3633	3633	6 due on or after the date of the election. In addition,
3634	3634	7 the cooperative may file an amended return or returns,
3635	3635	8 as allowed under this Act, to provide that the
3636	3636	9 election shall be effective for losses incurred or
3637	3637	10 carried forward for taxable years occurring prior to
3638	3638	11 the date of the election. Once made, the election may
3639	3639	12 only be revoked upon approval of the Director. The
3640	3640	13 Department shall adopt rules setting forth
3641	3641	14 requirements for documenting the elections and any
3642	3642	15 resulting Illinois net loss and the standards to be
3643	3643	16 used by the Director in evaluating requests to revoke
3644	3644	17 elections. Public Act 96-932 is declaratory of
3645	3645	18 existing law;
3646	3646	19 (G) Subchapter S corporations. In the case of: (i)
3647	3647	20 a Subchapter S corporation for which there is in
3648	3648	21 effect an election for the taxable year under Section
3649	3649	22 1362 of the Internal Revenue Code, the taxable income
3650	3650	23 of such corporation determined in accordance with
3651	3651	24 Section 1363(b) of the Internal Revenue Code, except
3652	3652	25 that taxable income shall take into account those
3653	3653	26 items which are required by Section 1363(b)(1) of the
3654	3654
3655	3655
3656	3656
3657	3657
3658	3658
3659	3659	SB1313 - 101 - LRB103 28169 HLH 54548 b
3660	3660
3661	3661
3662	3662	SB1313- 102 -LRB103 28169 HLH 54548 b SB1313 - 102 - LRB103 28169 HLH 54548 b
3663	3663	SB1313 - 102 - LRB103 28169 HLH 54548 b
3664	3664	1 Internal Revenue Code to be separately stated; and
3665	3665	2 (ii) a Subchapter S corporation for which there is in
3666	3666	3 effect a federal election to opt out of the provisions
3667	3667	4 of the Subchapter S Revision Act of 1982 and have
3668	3668	5 applied instead the prior federal Subchapter S rules
3669	3669	6 as in effect on July 1, 1982, the taxable income of
3670	3670	7 such corporation determined in accordance with the
3671	3671	8 federal Subchapter S rules as in effect on July 1,
3672	3672	9 1982; and
3673	3673	10 (H) Partnerships. In the case of a partnership,
3674	3674	11 taxable income determined in accordance with Section
3675	3675	12 703 of the Internal Revenue Code, except that taxable
3676	3676	13 income shall take into account those items which are
3677	3677	14 required by Section 703(a)(1) to be separately stated
3678	3678	15 but which would be taken into account by an individual
3679	3679	16 in calculating his taxable income.
3680	3680	17 (3) Recapture of business expenses on disposition of
3681	3681	18 asset or business. Notwithstanding any other law to the
3682	3682	19 contrary, if in prior years income from an asset or
3683	3683	20 business has been classified as business income and in a
3684	3684	21 later year is demonstrated to be non-business income, then
3685	3685	22 all expenses, without limitation, deducted in such later
3686	3686	23 year and in the 2 immediately preceding taxable years
3687	3687	24 related to that asset or business that generated the
3688	3688	25 non-business income shall be added back and recaptured as
3689	3689	26 business income in the year of the disposition of the
3690	3690
3691	3691
3692	3692
3693	3693
3694	3694
3695	3695	SB1313 - 102 - LRB103 28169 HLH 54548 b
3696	3696
3697	3697
3698	3698	SB1313- 103 -LRB103 28169 HLH 54548 b SB1313 - 103 - LRB103 28169 HLH 54548 b
3699	3699	SB1313 - 103 - LRB103 28169 HLH 54548 b
3700	3700	1 asset or business. Such amount shall be apportioned to
3701	3701	2 Illinois using the greater of the apportionment fraction
3702	3702	3 computed for the business under Section 304 of this Act
3703	3703	4 for the taxable year or the average of the apportionment
3704	3704	5 fractions computed for the business under Section 304 of
3705	3705	6 this Act for the taxable year and for the 2 immediately
3706	3706	7 preceding taxable years.
3707	3707	8 (f) Valuation limitation amount.
3708	3708	9 (1) In general. The valuation limitation amount
3709	3709	10 referred to in subsections (a)(2)(G), (c)(2)(I) and
3710	3710	11 (d)(2)(E) is an amount equal to:
3711	3711	12 (A) The sum of the pre-August 1, 1969 appreciation
3712	3712	13 amounts (to the extent consisting of gain reportable
3713	3713	14 under the provisions of Section 1245 or 1250 of the
3714	3714	15 Internal Revenue Code) for all property in respect of
3715	3715	16 which such gain was reported for the taxable year;
3716	3716	17 plus
3717	3717	18 (B) The lesser of (i) the sum of the pre-August 1,
3718	3718	19 1969 appreciation amounts (to the extent consisting of
3719	3719	20 capital gain) for all property in respect of which
3720	3720	21 such gain was reported for federal income tax purposes
3721	3721	22 for the taxable year, or (ii) the net capital gain for
3722	3722	23 the taxable year, reduced in either case by any amount
3723	3723	24 of such gain included in the amount determined under
3724	3724	25 subsection (a)(2)(F) or (c)(2)(H).
3725	3725
3726	3726
3727	3727
3728	3728
3729	3729
3730	3730	SB1313 - 103 - LRB103 28169 HLH 54548 b
3731	3731
3732	3732
3733	3733	SB1313- 104 -LRB103 28169 HLH 54548 b SB1313 - 104 - LRB103 28169 HLH 54548 b
3734	3734	SB1313 - 104 - LRB103 28169 HLH 54548 b
3735	3735	1 (2) Pre-August 1, 1969 appreciation amount.
3736	3736	2 (A) If the fair market value of property referred
3737	3737	3 to in paragraph (1) was readily ascertainable on
3738	3738	4 August 1, 1969, the pre-August 1, 1969 appreciation
3739	3739	5 amount for such property is the lesser of (i) the
3740	3740	6 excess of such fair market value over the taxpayer's
3741	3741	7 basis (for determining gain) for such property on that
3742	3742	8 date (determined under the Internal Revenue Code as in
3743	3743	9 effect on that date), or (ii) the total gain realized
3744	3744	10 and reportable for federal income tax purposes in
3745	3745	11 respect of the sale, exchange or other disposition of
3746	3746	12 such property.
3747	3747	13 (B) If the fair market value of property referred
3748	3748	14 to in paragraph (1) was not readily ascertainable on
3749	3749	15 August 1, 1969, the pre-August 1, 1969 appreciation
3750	3750	16 amount for such property is that amount which bears
3751	3751	17 the same ratio to the total gain reported in respect of
3752	3752	18 the property for federal income tax purposes for the
3753	3753	19 taxable year, as the number of full calendar months in
3754	3754	20 that part of the taxpayer's holding period for the
3755	3755	21 property ending July 31, 1969 bears to the number of
3756	3756	22 full calendar months in the taxpayer's entire holding
3757	3757	23 period for the property.
3758	3758	24 (C) The Department shall prescribe such
3759	3759	25 regulations as may be necessary to carry out the
3760	3760	26 purposes of this paragraph.
3761	3761
3762	3762
3763	3763
3764	3764
3765	3765
3766	3766	SB1313 - 104 - LRB103 28169 HLH 54548 b
3767	3767
3768	3768
3769	3769	SB1313- 105 -LRB103 28169 HLH 54548 b SB1313 - 105 - LRB103 28169 HLH 54548 b
3770	3770	SB1313 - 105 - LRB103 28169 HLH 54548 b
3771	3771	1 (g) Double deductions. Unless specifically provided
3772	3772	2 otherwise, nothing in this Section shall permit the same item
3773	3773	3 to be deducted more than once.
3774	3774	4 (h) Legislative intention. Except as expressly provided by
3775	3775	5 this Section there shall be no modifications or limitations on
3776	3776	6 the amounts of income, gain, loss or deduction taken into
3777	3777	7 account in determining gross income, adjusted gross income or
3778	3778	8 taxable income for federal income tax purposes for the taxable
3779	3779	9 year, or in the amount of such items entering into the
3780	3780	10 computation of base income and net income under this Act for
3781	3781	11 such taxable year, whether in respect of property values as of
3782	3782	12 August 1, 1969 or otherwise.
3783	3783	13 (Source: P.A. 101-9, eff. 6-5-19; 101-81, eff. 7-12-19;
3784	3784	14 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658, eff.
3785	3785	15 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. 12-21-22.)
3786	3786	16 Section 99. Effective date. This Act takes effect January
3787	3787	17 1, 2024.
3788	3788
3789	3789
3790	3790
3791	3791
3792	3792
3793	3793	SB1313 - 105 - LRB103 28169 HLH 54548 b