Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1467 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 SB1467 Introduced 2/7/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED: See Index Creates the Illinois Fertility Fraud Act. Allows the following individuals to bring an action against any health care provider, embryologist, or any other person involved in any stage of the treatment who knowingly or intentionally used the health care provider's, embryologist's, or person's own human reproductive material without the patient's informed written consent to treatment using the health care provider's, embryologist's, or person's human reproductive material: a woman who gives birth to a child after receiving assisted reproductive treatment or any other artificial means used to cause pregnancy; the spouse of the woman; the surviving spouse of the woman; or a child born as a result of the treatment. Allows a donor of human reproductive material to bring an action against a health care provider under certain circumstances. Provides that a plaintiff who prevails in an action is entitled to reasonable attorney's fees and compensatory and punitive damages or liquidated damages of $50,000. Provides that any child born as a result of the fertility fraud is entitled to a qualified protective order allowing the child access to the personal medical records and health history of the health care provider, embryologist, or other person who committed the fraud. Amends the Illinois Income Tax Act. Includes in the list of modifications of a taxpayer's adjusted gross income for the taxable year, to the extent includible in gross income for federal income tax purposes, any amount awarded or paid to the taxpayer as a result of a judgment or settlement for fertility fraud. Amends the Criminal Code of 2012. Provides that a person commits criminal sexual assault if that person is a health care provider who knowingly or intentionally provides assisted reproductive treatment to a patient by using the health care provider's own spermatozoon or ovum without the patient's informed written consent to treatment using the health care provider's spermatozoon or ovum. Amends the Code of Civil Procedure. Provides that an action for fertility fraud must be commenced within the later of 20 years after specified events. LRB103 28709 LNS 55091 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1467 Introduced 2/7/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED: See Index See Index Creates the Illinois Fertility Fraud Act. Allows the following individuals to bring an action against any health care provider, embryologist, or any other person involved in any stage of the treatment who knowingly or intentionally used the health care provider's, embryologist's, or person's own human reproductive material without the patient's informed written consent to treatment using the health care provider's, embryologist's, or person's human reproductive material: a woman who gives birth to a child after receiving assisted reproductive treatment or any other artificial means used to cause pregnancy; the spouse of the woman; the surviving spouse of the woman; or a child born as a result of the treatment. Allows a donor of human reproductive material to bring an action against a health care provider under certain circumstances. Provides that a plaintiff who prevails in an action is entitled to reasonable attorney's fees and compensatory and punitive damages or liquidated damages of $50,000. Provides that any child born as a result of the fertility fraud is entitled to a qualified protective order allowing the child access to the personal medical records and health history of the health care provider, embryologist, or other person who committed the fraud. Amends the Illinois Income Tax Act. Includes in the list of modifications of a taxpayer's adjusted gross income for the taxable year, to the extent includible in gross income for federal income tax purposes, any amount awarded or paid to the taxpayer as a result of a judgment or settlement for fertility fraud. Amends the Criminal Code of 2012. Provides that a person commits criminal sexual assault if that person is a health care provider who knowingly or intentionally provides assisted reproductive treatment to a patient by using the health care provider's own spermatozoon or ovum without the patient's informed written consent to treatment using the health care provider's spermatozoon or ovum. Amends the Code of Civil Procedure. Provides that an action for fertility fraud must be commenced within the later of 20 years after specified events. LRB103 28709 LNS 55091 b LRB103 28709 LNS 55091 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1467 Introduced 2/7/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Creates the Illinois Fertility Fraud Act. Allows the following individuals to bring an action against any health care provider, embryologist, or any other person involved in any stage of the treatment who knowingly or intentionally used the health care provider's, embryologist's, or person's own human reproductive material without the patient's informed written consent to treatment using the health care provider's, embryologist's, or person's human reproductive material: a woman who gives birth to a child after receiving assisted reproductive treatment or any other artificial means used to cause pregnancy; the spouse of the woman; the surviving spouse of the woman; or a child born as a result of the treatment. Allows a donor of human reproductive material to bring an action against a health care provider under certain circumstances. Provides that a plaintiff who prevails in an action is entitled to reasonable attorney's fees and compensatory and punitive damages or liquidated damages of $50,000. Provides that any child born as a result of the fertility fraud is entitled to a qualified protective order allowing the child access to the personal medical records and health history of the health care provider, embryologist, or other person who committed the fraud. Amends the Illinois Income Tax Act. Includes in the list of modifications of a taxpayer's adjusted gross income for the taxable year, to the extent includible in gross income for federal income tax purposes, any amount awarded or paid to the taxpayer as a result of a judgment or settlement for fertility fraud. Amends the Criminal Code of 2012. Provides that a person commits criminal sexual assault if that person is a health care provider who knowingly or intentionally provides assisted reproductive treatment to a patient by using the health care provider's own spermatozoon or ovum without the patient's informed written consent to treatment using the health care provider's spermatozoon or ovum. Amends the Code of Civil Procedure. Provides that an action for fertility fraud must be commenced within the later of 20 years after specified events.
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8	8	A BILL FOR
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10	10	SB1467 LRB103 28709 LNS 55091 b
11	11	1 AN ACT concerning civil law.
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 1. Short title. This Act may be cited as the
15	15	5 Illinois Fertility Fraud Act.
16	16	6 Section 5. Legislative intent. The General Assembly finds
17	17	7 that fertility fraud, or the assisted reproductive treatment
18	18	8 of a patient using the health care provider's own human
19	19	9 reproductive material without the patient's informed written
20	20	10 consent, has caused significant harm and had a severe negative
21	21	11 impact on residents of this State including former patients
22	22	12 and their children. This conduct has never constituted or
23	23	13 complied with the medical standard of care and violates
24	24	14 doctor-patient trust. Often discovering the fraud through DNA
25	25	15 testing many years later, these individuals must now cope with
26	26	16 knowing that their bodies and autonomy were violated, grapple
27	27	17 with the sexual nature of the conduct, and negotiate identity
28	28	18 issues and changing family relationships. Therefore, it is the
29	29	19 intent of the General Assembly that any civil action
30	30	20 authorized by this Act shall be retroactive and apply to any
31	31	21 treatment by a health care provider occurring prior to the
32	32	22 effective date of this Act.
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36	36	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1467 Introduced 2/7/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
37	37	See Index See Index
38	38	See Index
39	39	Creates the Illinois Fertility Fraud Act. Allows the following individuals to bring an action against any health care provider, embryologist, or any other person involved in any stage of the treatment who knowingly or intentionally used the health care provider's, embryologist's, or person's own human reproductive material without the patient's informed written consent to treatment using the health care provider's, embryologist's, or person's human reproductive material: a woman who gives birth to a child after receiving assisted reproductive treatment or any other artificial means used to cause pregnancy; the spouse of the woman; the surviving spouse of the woman; or a child born as a result of the treatment. Allows a donor of human reproductive material to bring an action against a health care provider under certain circumstances. Provides that a plaintiff who prevails in an action is entitled to reasonable attorney's fees and compensatory and punitive damages or liquidated damages of $50,000. Provides that any child born as a result of the fertility fraud is entitled to a qualified protective order allowing the child access to the personal medical records and health history of the health care provider, embryologist, or other person who committed the fraud. Amends the Illinois Income Tax Act. Includes in the list of modifications of a taxpayer's adjusted gross income for the taxable year, to the extent includible in gross income for federal income tax purposes, any amount awarded or paid to the taxpayer as a result of a judgment or settlement for fertility fraud. Amends the Criminal Code of 2012. Provides that a person commits criminal sexual assault if that person is a health care provider who knowingly or intentionally provides assisted reproductive treatment to a patient by using the health care provider's own spermatozoon or ovum without the patient's informed written consent to treatment using the health care provider's spermatozoon or ovum. Amends the Code of Civil Procedure. Provides that an action for fertility fraud must be commenced within the later of 20 years after specified events.
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67	67	1 Section 10. Definitions. As used in this Act:
68	68	2 "Assisted reproductive treatment" means a method of
69	69	3 causing pregnancy by any means other than through sexual
70	70	4 intercourse, including:
71	71	5 (1) intrauterine or intracervical insemination;
72	72	6 (2) donation of eggs or sperm;
73	73	7 (3) donation of embryos;
74	74	8 (4) in vitro fertilization and embryo transfer; and
75	75	9 (5) intracytoplasmic sperm injection.
76	76	10 "Health care" means any phase of patient care, including,
77	77	11 but not limited to: testing; diagnosis; prognosis; ancillary
78	78	12 research; instructions; assisted reproduction; family
79	79	13 planning, counseling, referrals, or any other advice in
80	80	14 connection with conception; surgery or other care or treatment
81	81	15 rendered by a physician, nurse, paraprofessional, or health
82	82	16 care facility, intended for the physical, emotional, and
83	83	17 mental well-being of persons.
84	84	18 "Health care provider" means a physician, physician
85	85	19 assistant, advanced practice registered nurse, registered
86	86	20 nurse, licensed practical nurse, any individual licensed under
87	87	21 the laws of this State to provide health care, or any
88	88	22 individual who handles human reproductive material in a health
89	89	23 care setting.
90	90	24 "Human reproductive material" means:
91	91	25 (1) a human spermatozoon or ovum; or
92	92	26 (2) a human organism at any stage of development from
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103	103	1 fertilized ovum to embryo.
104	104	2 "In vitro fertilization" means all medical and laboratory
105	105	3 procedures that are necessary to effectuate the extracorporeal
106	106	4 fertilization of egg and sperm.
107	107	5 "Physician" means a person licensed to practice medicine
108	108	6 in all its branches in this State.
109	109	7 Section 15. Fertility fraud. The following individuals may
110	110	8 bring an action against any health care provider,
111	111	9 embryologist, or any other person involved in any stage of the
112	112	10 treatment who knowingly or intentionally used the health care
113	113	11 provider's, embryologist's, or person's own human reproductive
114	114	12 material without the patient's informed written consent to
115	115	13 treatment using the health care provider's, embryologist's, or
116	116	14 person's human reproductive material:
117	117	15 (1) a woman who gives birth to a child after receiving
118	118	16 assisted reproductive treatment or any other artificial
119	119	17 means used to cause pregnancy;
120	120	18 (2) the spouse of a woman under paragraph (1);
121	121	19 (3) the surviving spouse of a woman under paragraph
122	122	20 (1); or
123	123	21 (4) a child born as a result of the treatment.
124	124	22 Section 20. Donor fertility fraud. A donor of human
125	125	23 reproductive material may bring an action against a health
126	126	24 care provider who:
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137	137	1 (1) treats a patient for infertility by using human
138	138	2 reproductive material donated by the donor; and
139	139	3 (2) knows or reasonably should have known that the
140	140	4 human reproductive material was used:
141	141	5 (A) without the donor's consent; or
142	142	6 (B) in a manner or to an extent other than that to
143	143	7 which the donor consented.
144	144	8 Section 25. Rewards. A plaintiff who prevails in an action
145	145	9 under this Act is entitled to reasonable attorney's fees and:
146	146	10 (1) compensatory and punitive damages; or
147	147	11 (2) liquidated damages of $50,000.
148	148	12 A plaintiff who prevails in an action brought under
149	149	13 Section 15 is also entitled to the costs of the fertility
150	150	14 treatment.
151	151	15 Section 30. Protective order for access to personal
152	152	16 medical records and health history. Any child born as a result
153	153	17 of the fertility fraud referred to in Section 15 is entitled to
154	154	18 a qualified protective order allowing the child access to the
155	155	19 personal medical records and health history of the health care
156	156	20 provider, embryologist, or other person who committed the
157	157	21 fraud.
158	158	22 Section 35. Causes of action.
159	159	23 (a) A person who brings an action under Section 15 has a
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170	170	1 separate cause of action for each child born as the result of
171	171	2 the fraudulent assisted reproductive treatment.
172	172	3 (b) A person who brings an action under Section 20 has a
173	173	4 separate cause of action for each individual who received
174	174	5 assisted reproductive treatment with the donor's human
175	175	6 reproductive material.
176	176	7 Section 40. Other remedies. Nothing in this Act may be
177	177	8 construed to prohibit a person from pursuing any other remedy
178	178	9 provided by law.
179	179	10 Section 45. The Illinois Income Tax Act is amended by
180	180	11 changing Section 203 as follows:
181	181	12 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
182	182	13 Sec. 203. Base income defined.
183	183	14 (a) Individuals.
184	184	15 (1) In general. In the case of an individual, base
185	185	16 income means an amount equal to the taxpayer's adjusted
186	186	17 gross income for the taxable year as modified by paragraph
187	187	18 (2).
188	188	19 (2) Modifications. The adjusted gross income referred
189	189	20 to in paragraph (1) shall be modified by adding thereto
190	190	21 the sum of the following amounts:
191	191	22 (A) An amount equal to all amounts paid or accrued
192	192	23 to the taxpayer as interest or dividends during the
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203	203	1 taxable year to the extent excluded from gross income
204	204	2 in the computation of adjusted gross income, except
205	205	3 stock dividends of qualified public utilities
206	206	4 described in Section 305(e) of the Internal Revenue
207	207	5 Code;
208	208	6 (B) An amount equal to the amount of tax imposed by
209	209	7 this Act to the extent deducted from gross income in
210	210	8 the computation of adjusted gross income for the
211	211	9 taxable year;
212	212	10 (C) An amount equal to the amount received during
213	213	11 the taxable year as a recovery or refund of real
214	214	12 property taxes paid with respect to the taxpayer's
215	215	13 principal residence under the Revenue Act of 1939 and
216	216	14 for which a deduction was previously taken under
217	217	15 subparagraph (L) of this paragraph (2) prior to July
218	218	16 1, 1991, the retrospective application date of Article
219	219	17 4 of Public Act 87-17. In the case of multi-unit or
220	220	18 multi-use structures and farm dwellings, the taxes on
221	221	19 the taxpayer's principal residence shall be that
222	222	20 portion of the total taxes for the entire property
223	223	21 which is attributable to such principal residence;
224	224	22 (D) An amount equal to the amount of the capital
225	225	23 gain deduction allowable under the Internal Revenue
226	226	24 Code, to the extent deducted from gross income in the
227	227	25 computation of adjusted gross income;
228	228	26 (D-5) An amount, to the extent not included in
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239	239	1 adjusted gross income, equal to the amount of money
240	240	2 withdrawn by the taxpayer in the taxable year from a
241	241	3 medical care savings account and the interest earned
242	242	4 on the account in the taxable year of a withdrawal
243	243	5 pursuant to subsection (b) of Section 20 of the
244	244	6 Medical Care Savings Account Act or subsection (b) of
245	245	7 Section 20 of the Medical Care Savings Account Act of
246	246	8 2000;
247	247	9 (D-10) For taxable years ending after December 31,
248	248	10 1997, an amount equal to any eligible remediation
249	249	11 costs that the individual deducted in computing
250	250	12 adjusted gross income and for which the individual
251	251	13 claims a credit under subsection (l) of Section 201;
252	252	14 (D-15) For taxable years 2001 and thereafter, an
253	253	15 amount equal to the bonus depreciation deduction taken
254	254	16 on the taxpayer's federal income tax return for the
255	255	17 taxable year under subsection (k) of Section 168 of
256	256	18 the Internal Revenue Code;
257	257	19 (D-16) If the taxpayer sells, transfers, abandons,
258	258	20 or otherwise disposes of property for which the
259	259	21 taxpayer was required in any taxable year to make an
260	260	22 addition modification under subparagraph (D-15), then
261	261	23 an amount equal to the aggregate amount of the
262	262	24 deductions taken in all taxable years under
263	263	25 subparagraph (Z) with respect to that property.
264	264	26 If the taxpayer continues to own property through
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275	275	1 the last day of the last tax year for which a
276	276	2 subtraction is allowed with respect to that property
277	277	3 under subparagraph (Z) and for which the taxpayer was
278	278	4 allowed in any taxable year to make a subtraction
279	279	5 modification under subparagraph (Z), then an amount
280	280	6 equal to that subtraction modification.
281	281	7 The taxpayer is required to make the addition
282	282	8 modification under this subparagraph only once with
283	283	9 respect to any one piece of property;
284	284	10 (D-17) An amount equal to the amount otherwise
285	285	11 allowed as a deduction in computing base income for
286	286	12 interest paid, accrued, or incurred, directly or
287	287	13 indirectly, (i) for taxable years ending on or after
288	288	14 December 31, 2004, to a foreign person who would be a
289	289	15 member of the same unitary business group but for the
290	290	16 fact that foreign person's business activity outside
291	291	17 the United States is 80% or more of the foreign
292	292	18 person's total business activity and (ii) for taxable
293	293	19 years ending on or after December 31, 2008, to a person
294	294	20 who would be a member of the same unitary business
295	295	21 group but for the fact that the person is prohibited
296	296	22 under Section 1501(a)(27) from being included in the
297	297	23 unitary business group because he or she is ordinarily
298	298	24 required to apportion business income under different
299	299	25 subsections of Section 304. The addition modification
300	300	26 required by this subparagraph shall be reduced to the
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311	311	1 extent that dividends were included in base income of
312	312	2 the unitary group for the same taxable year and
313	313	3 received by the taxpayer or by a member of the
314	314	4 taxpayer's unitary business group (including amounts
315	315	5 included in gross income under Sections 951 through
316	316	6 964 of the Internal Revenue Code and amounts included
317	317	7 in gross income under Section 78 of the Internal
318	318	8 Revenue Code) with respect to the stock of the same
319	319	9 person to whom the interest was paid, accrued, or
320	320	10 incurred.
321	321	11 This paragraph shall not apply to the following:
322	322	12 (i) an item of interest paid, accrued, or
323	323	13 incurred, directly or indirectly, to a person who
324	324	14 is subject in a foreign country or state, other
325	325	15 than a state which requires mandatory unitary
326	326	16 reporting, to a tax on or measured by net income
327	327	17 with respect to such interest; or
328	328	18 (ii) an item of interest paid, accrued, or
329	329	19 incurred, directly or indirectly, to a person if
330	330	20 the taxpayer can establish, based on a
331	331	21 preponderance of the evidence, both of the
332	332	22 following:
333	333	23 (a) the person, during the same taxable
334	334	24 year, paid, accrued, or incurred, the interest
335	335	25 to a person that is not a related member, and
336	336	26 (b) the transaction giving rise to the
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347	347	1 interest expense between the taxpayer and the
348	348	2 person did not have as a principal purpose the
349	349	3 avoidance of Illinois income tax, and is paid
350	350	4 pursuant to a contract or agreement that
351	351	5 reflects an arm's-length interest rate and
352	352	6 terms; or
353	353	7 (iii) the taxpayer can establish, based on
354	354	8 clear and convincing evidence, that the interest
355	355	9 paid, accrued, or incurred relates to a contract
356	356	10 or agreement entered into at arm's-length rates
357	357	11 and terms and the principal purpose for the
358	358	12 payment is not federal or Illinois tax avoidance;
359	359	13 or
360	360	14 (iv) an item of interest paid, accrued, or
361	361	15 incurred, directly or indirectly, to a person if
362	362	16 the taxpayer establishes by clear and convincing
363	363	17 evidence that the adjustments are unreasonable; or
364	364	18 if the taxpayer and the Director agree in writing
365	365	19 to the application or use of an alternative method
366	366	20 of apportionment under Section 304(f).
367	367	21 Nothing in this subsection shall preclude the
368	368	22 Director from making any other adjustment
369	369	23 otherwise allowed under Section 404 of this Act
370	370	24 for any tax year beginning after the effective
371	371	25 date of this amendment provided such adjustment is
372	372	26 made pursuant to regulation adopted by the
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383	383	1 Department and such regulations provide methods
384	384	2 and standards by which the Department will utilize
385	385	3 its authority under Section 404 of this Act;
386	386	4 (D-18) An amount equal to the amount of intangible
387	387	5 expenses and costs otherwise allowed as a deduction in
388	388	6 computing base income, and that were paid, accrued, or
389	389	7 incurred, directly or indirectly, (i) for taxable
390	390	8 years ending on or after December 31, 2004, to a
391	391	9 foreign person who would be a member of the same
392	392	10 unitary business group but for the fact that the
393	393	11 foreign person's business activity outside the United
394	394	12 States is 80% or more of that person's total business
395	395	13 activity and (ii) for taxable years ending on or after
396	396	14 December 31, 2008, to a person who would be a member of
397	397	15 the same unitary business group but for the fact that
398	398	16 the person is prohibited under Section 1501(a)(27)
399	399	17 from being included in the unitary business group
400	400	18 because he or she is ordinarily required to apportion
401	401	19 business income under different subsections of Section
402	402	20 304. The addition modification required by this
403	403	21 subparagraph shall be reduced to the extent that
404	404	22 dividends were included in base income of the unitary
405	405	23 group for the same taxable year and received by the
406	406	24 taxpayer or by a member of the taxpayer's unitary
407	407	25 business group (including amounts included in gross
408	408	26 income under Sections 951 through 964 of the Internal
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419	419	1 Revenue Code and amounts included in gross income
420	420	2 under Section 78 of the Internal Revenue Code) with
421	421	3 respect to the stock of the same person to whom the
422	422	4 intangible expenses and costs were directly or
423	423	5 indirectly paid, incurred, or accrued. The preceding
424	424	6 sentence does not apply to the extent that the same
425	425	7 dividends caused a reduction to the addition
426	426	8 modification required under Section 203(a)(2)(D-17) of
427	427	9 this Act. As used in this subparagraph, the term
428	428	10 "intangible expenses and costs" includes (1) expenses,
429	429	11 losses, and costs for, or related to, the direct or
430	430	12 indirect acquisition, use, maintenance or management,
431	431	13 ownership, sale, exchange, or any other disposition of
432	432	14 intangible property; (2) losses incurred, directly or
433	433	15 indirectly, from factoring transactions or discounting
434	434	16 transactions; (3) royalty, patent, technical, and
435	435	17 copyright fees; (4) licensing fees; and (5) other
436	436	18 similar expenses and costs. For purposes of this
437	437	19 subparagraph, "intangible property" includes patents,
438	438	20 patent applications, trade names, trademarks, service
439	439	21 marks, copyrights, mask works, trade secrets, and
440	440	22 similar types of intangible assets.
441	441	23 This paragraph shall not apply to the following:
442	442	24 (i) any item of intangible expenses or costs
443	443	25 paid, accrued, or incurred, directly or
444	444	26 indirectly, from a transaction with a person who
445	445
446	446
447	447
448	448
449	449
450	450	SB1467 - 12 - LRB103 28709 LNS 55091 b
451	451
452	452
453	453	SB1467- 13 -LRB103 28709 LNS 55091 b SB1467 - 13 - LRB103 28709 LNS 55091 b
454	454	SB1467 - 13 - LRB103 28709 LNS 55091 b
455	455	1 is subject in a foreign country or state, other
456	456	2 than a state which requires mandatory unitary
457	457	3 reporting, to a tax on or measured by net income
458	458	4 with respect to such item; or
459	459	5 (ii) any item of intangible expense or cost
460	460	6 paid, accrued, or incurred, directly or
461	461	7 indirectly, if the taxpayer can establish, based
462	462	8 on a preponderance of the evidence, both of the
463	463	9 following:
464	464	10 (a) the person during the same taxable
465	465	11 year paid, accrued, or incurred, the
466	466	12 intangible expense or cost to a person that is
467	467	13 not a related member, and
468	468	14 (b) the transaction giving rise to the
469	469	15 intangible expense or cost between the
470	470	16 taxpayer and the person did not have as a
471	471	17 principal purpose the avoidance of Illinois
472	472	18 income tax, and is paid pursuant to a contract
473	473	19 or agreement that reflects arm's-length terms;
474	474	20 or
475	475	21 (iii) any item of intangible expense or cost
476	476	22 paid, accrued, or incurred, directly or
477	477	23 indirectly, from a transaction with a person if
478	478	24 the taxpayer establishes by clear and convincing
479	479	25 evidence, that the adjustments are unreasonable;
480	480	26 or if the taxpayer and the Director agree in
481	481
482	482
483	483
484	484
485	485
486	486	SB1467 - 13 - LRB103 28709 LNS 55091 b
487	487
488	488
489	489	SB1467- 14 -LRB103 28709 LNS 55091 b SB1467 - 14 - LRB103 28709 LNS 55091 b
490	490	SB1467 - 14 - LRB103 28709 LNS 55091 b
491	491	1 writing to the application or use of an
492	492	2 alternative method of apportionment under Section
493	493	3 304(f);
494	494	4 Nothing in this subsection shall preclude the
495	495	5 Director from making any other adjustment
496	496	6 otherwise allowed under Section 404 of this Act
497	497	7 for any tax year beginning after the effective
498	498	8 date of this amendment provided such adjustment is
499	499	9 made pursuant to regulation adopted by the
500	500	10 Department and such regulations provide methods
501	501	11 and standards by which the Department will utilize
502	502	12 its authority under Section 404 of this Act;
503	503	13 (D-19) For taxable years ending on or after
504	504	14 December 31, 2008, an amount equal to the amount of
505	505	15 insurance premium expenses and costs otherwise allowed
506	506	16 as a deduction in computing base income, and that were
507	507	17 paid, accrued, or incurred, directly or indirectly, to
508	508	18 a person who would be a member of the same unitary
509	509	19 business group but for the fact that the person is
510	510	20 prohibited under Section 1501(a)(27) from being
511	511	21 included in the unitary business group because he or
512	512	22 she is ordinarily required to apportion business
513	513	23 income under different subsections of Section 304. The
514	514	24 addition modification required by this subparagraph
515	515	25 shall be reduced to the extent that dividends were
516	516	26 included in base income of the unitary group for the
517	517
518	518
519	519
520	520
521	521
522	522	SB1467 - 14 - LRB103 28709 LNS 55091 b
523	523
524	524
525	525	SB1467- 15 -LRB103 28709 LNS 55091 b SB1467 - 15 - LRB103 28709 LNS 55091 b
526	526	SB1467 - 15 - LRB103 28709 LNS 55091 b
527	527	1 same taxable year and received by the taxpayer or by a
528	528	2 member of the taxpayer's unitary business group
529	529	3 (including amounts included in gross income under
530	530	4 Sections 951 through 964 of the Internal Revenue Code
531	531	5 and amounts included in gross income under Section 78
532	532	6 of the Internal Revenue Code) with respect to the
533	533	7 stock of the same person to whom the premiums and costs
534	534	8 were directly or indirectly paid, incurred, or
535	535	9 accrued. The preceding sentence does not apply to the
536	536	10 extent that the same dividends caused a reduction to
537	537	11 the addition modification required under Section
538	538	12 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
539	539	13 Act;
540	540	14 (D-20) For taxable years beginning on or after
541	541	15 January 1, 2002 and ending on or before December 31,
542	542	16 2006, in the case of a distribution from a qualified
543	543	17 tuition program under Section 529 of the Internal
544	544	18 Revenue Code, other than (i) a distribution from a
545	545	19 College Savings Pool created under Section 16.5 of the
546	546	20 State Treasurer Act or (ii) a distribution from the
547	547	21 Illinois Prepaid Tuition Trust Fund, an amount equal
548	548	22 to the amount excluded from gross income under Section
549	549	23 529(c)(3)(B). For taxable years beginning on or after
550	550	24 January 1, 2007, in the case of a distribution from a
551	551	25 qualified tuition program under Section 529 of the
552	552	26 Internal Revenue Code, other than (i) a distribution
553	553
554	554
555	555
556	556
557	557
558	558	SB1467 - 15 - LRB103 28709 LNS 55091 b
559	559
560	560
561	561	SB1467- 16 -LRB103 28709 LNS 55091 b SB1467 - 16 - LRB103 28709 LNS 55091 b
562	562	SB1467 - 16 - LRB103 28709 LNS 55091 b
563	563	1 from a College Savings Pool created under Section 16.5
564	564	2 of the State Treasurer Act, (ii) a distribution from
565	565	3 the Illinois Prepaid Tuition Trust Fund, or (iii) a
566	566	4 distribution from a qualified tuition program under
567	567	5 Section 529 of the Internal Revenue Code that (I)
568	568	6 adopts and determines that its offering materials
569	569	7 comply with the College Savings Plans Network's
570	570	8 disclosure principles and (II) has made reasonable
571	571	9 efforts to inform in-state residents of the existence
572	572	10 of in-state qualified tuition programs by informing
573	573	11 Illinois residents directly and, where applicable, to
574	574	12 inform financial intermediaries distributing the
575	575	13 program to inform in-state residents of the existence
576	576	14 of in-state qualified tuition programs at least
577	577	15 annually, an amount equal to the amount excluded from
578	578	16 gross income under Section 529(c)(3)(B).
579	579	17 For the purposes of this subparagraph (D-20), a
580	580	18 qualified tuition program has made reasonable efforts
581	581	19 if it makes disclosures (which may use the term
582	582	20 "in-state program" or "in-state plan" and need not
583	583	21 specifically refer to Illinois or its qualified
584	584	22 programs by name) (i) directly to prospective
585	585	23 participants in its offering materials or makes a
586	586	24 public disclosure, such as a website posting; and (ii)
587	587	25 where applicable, to intermediaries selling the
588	588	26 out-of-state program in the same manner that the
589	589
590	590
591	591
592	592
593	593
594	594	SB1467 - 16 - LRB103 28709 LNS 55091 b
595	595
596	596
597	597	SB1467- 17 -LRB103 28709 LNS 55091 b SB1467 - 17 - LRB103 28709 LNS 55091 b
598	598	SB1467 - 17 - LRB103 28709 LNS 55091 b
599	599	1 out-of-state program distributes its offering
600	600	2 materials;
601	601	3 (D-20.5) For taxable years beginning on or after
602	602	4 January 1, 2018, in the case of a distribution from a
603	603	5 qualified ABLE program under Section 529A of the
604	604	6 Internal Revenue Code, other than a distribution from
605	605	7 a qualified ABLE program created under Section 16.6 of
606	606	8 the State Treasurer Act, an amount equal to the amount
607	607	9 excluded from gross income under Section 529A(c)(1)(B)
608	608	10 of the Internal Revenue Code;
609	609	11 (D-21) For taxable years beginning on or after
610	610	12 January 1, 2007, in the case of transfer of moneys from
611	611	13 a qualified tuition program under Section 529 of the
612	612	14 Internal Revenue Code that is administered by the
613	613	15 State to an out-of-state program, an amount equal to
614	614	16 the amount of moneys previously deducted from base
615	615	17 income under subsection (a)(2)(Y) of this Section;
616	616	18 (D-21.5) For taxable years beginning on or after
617	617	19 January 1, 2018, in the case of the transfer of moneys
618	618	20 from a qualified tuition program under Section 529 or
619	619	21 a qualified ABLE program under Section 529A of the
620	620	22 Internal Revenue Code that is administered by this
621	621	23 State to an ABLE account established under an
622	622	24 out-of-state ABLE account program, an amount equal to
623	623	25 the contribution component of the transferred amount
624	624	26 that was previously deducted from base income under
625	625
626	626
627	627
628	628
629	629
630	630	SB1467 - 17 - LRB103 28709 LNS 55091 b
631	631
632	632
633	633	SB1467- 18 -LRB103 28709 LNS 55091 b SB1467 - 18 - LRB103 28709 LNS 55091 b
634	634	SB1467 - 18 - LRB103 28709 LNS 55091 b
635	635	1 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
636	636	2 Section;
637	637	3 (D-22) For taxable years beginning on or after
638	638	4 January 1, 2009, and prior to January 1, 2018, in the
639	639	5 case of a nonqualified withdrawal or refund of moneys
640	640	6 from a qualified tuition program under Section 529 of
641	641	7 the Internal Revenue Code administered by the State
642	642	8 that is not used for qualified expenses at an eligible
643	643	9 education institution, an amount equal to the
644	644	10 contribution component of the nonqualified withdrawal
645	645	11 or refund that was previously deducted from base
646	646	12 income under subsection (a)(2)(y) of this Section,
647	647	13 provided that the withdrawal or refund did not result
648	648	14 from the beneficiary's death or disability. For
649	649	15 taxable years beginning on or after January 1, 2018:
650	650	16 (1) in the case of a nonqualified withdrawal or
651	651	17 refund, as defined under Section 16.5 of the State
652	652	18 Treasurer Act, of moneys from a qualified tuition
653	653	19 program under Section 529 of the Internal Revenue Code
654	654	20 administered by the State, an amount equal to the
655	655	21 contribution component of the nonqualified withdrawal
656	656	22 or refund that was previously deducted from base
657	657	23 income under subsection (a)(2)(Y) of this Section, and
658	658	24 (2) in the case of a nonqualified withdrawal or refund
659	659	25 from a qualified ABLE program under Section 529A of
660	660	26 the Internal Revenue Code administered by the State
661	661
662	662
663	663
664	664
665	665
666	666	SB1467 - 18 - LRB103 28709 LNS 55091 b
667	667
668	668
669	669	SB1467- 19 -LRB103 28709 LNS 55091 b SB1467 - 19 - LRB103 28709 LNS 55091 b
670	670	SB1467 - 19 - LRB103 28709 LNS 55091 b
671	671	1 that is not used for qualified disability expenses, an
672	672	2 amount equal to the contribution component of the
673	673	3 nonqualified withdrawal or refund that was previously
674	674	4 deducted from base income under subsection (a)(2)(HH)
675	675	5 of this Section;
676	676	6 (D-23) An amount equal to the credit allowable to
677	677	7 the taxpayer under Section 218(a) of this Act,
678	678	8 determined without regard to Section 218(c) of this
679	679	9 Act;
680	680	10 (D-24) For taxable years ending on or after
681	681	11 December 31, 2017, an amount equal to the deduction
682	682	12 allowed under Section 199 of the Internal Revenue Code
683	683	13 for the taxable year;
684	684	14 (D-25) In the case of a resident, an amount equal
685	685	15 to the amount of tax for which a credit is allowed
686	686	16 pursuant to Section 201(p)(7) of this Act;
687	687	17 and by deducting from the total so obtained the sum of the
688	688	18 following amounts:
689	689	19 (E) For taxable years ending before December 31,
690	690	20 2001, any amount included in such total in respect of
691	691	21 any compensation (including but not limited to any
692	692	22 compensation paid or accrued to a serviceman while a
693	693	23 prisoner of war or missing in action) paid to a
694	694	24 resident by reason of being on active duty in the Armed
695	695	25 Forces of the United States and in respect of any
696	696	26 compensation paid or accrued to a resident who as a
697	697
698	698
699	699
700	700
701	701
702	702	SB1467 - 19 - LRB103 28709 LNS 55091 b
703	703
704	704
705	705	SB1467- 20 -LRB103 28709 LNS 55091 b SB1467 - 20 - LRB103 28709 LNS 55091 b
706	706	SB1467 - 20 - LRB103 28709 LNS 55091 b
707	707	1 governmental employee was a prisoner of war or missing
708	708	2 in action, and in respect of any compensation paid to a
709	709	3 resident in 1971 or thereafter for annual training
710	710	4 performed pursuant to Sections 502 and 503, Title 32,
711	711	5 United States Code as a member of the Illinois
712	712	6 National Guard or, beginning with taxable years ending
713	713	7 on or after December 31, 2007, the National Guard of
714	714	8 any other state. For taxable years ending on or after
715	715	9 December 31, 2001, any amount included in such total
716	716	10 in respect of any compensation (including but not
717	717	11 limited to any compensation paid or accrued to a
718	718	12 serviceman while a prisoner of war or missing in
719	719	13 action) paid to a resident by reason of being a member
720	720	14 of any component of the Armed Forces of the United
721	721	15 States and in respect of any compensation paid or
722	722	16 accrued to a resident who as a governmental employee
723	723	17 was a prisoner of war or missing in action, and in
724	724	18 respect of any compensation paid to a resident in 2001
725	725	19 or thereafter by reason of being a member of the
726	726	20 Illinois National Guard or, beginning with taxable
727	727	21 years ending on or after December 31, 2007, the
728	728	22 National Guard of any other state. The provisions of
729	729	23 this subparagraph (E) are exempt from the provisions
730	730	24 of Section 250;
731	731	25 (F) An amount equal to all amounts included in
732	732	26 such total pursuant to the provisions of Sections
733	733
734	734
735	735
736	736
737	737
738	738	SB1467 - 20 - LRB103 28709 LNS 55091 b
739	739
740	740
741	741	SB1467- 21 -LRB103 28709 LNS 55091 b SB1467 - 21 - LRB103 28709 LNS 55091 b
742	742	SB1467 - 21 - LRB103 28709 LNS 55091 b
743	743	1 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
744	744	2 408 of the Internal Revenue Code, or included in such
745	745	3 total as distributions under the provisions of any
746	746	4 retirement or disability plan for employees of any
747	747	5 governmental agency or unit, or retirement payments to
748	748	6 retired partners, which payments are excluded in
749	749	7 computing net earnings from self employment by Section
750	750	8 1402 of the Internal Revenue Code and regulations
751	751	9 adopted pursuant thereto;
752	752	10 (G) The valuation limitation amount;
753	753	11 (H) An amount equal to the amount of any tax
754	754	12 imposed by this Act which was refunded to the taxpayer
755	755	13 and included in such total for the taxable year;
756	756	14 (I) An amount equal to all amounts included in
757	757	15 such total pursuant to the provisions of Section 111
758	758	16 of the Internal Revenue Code as a recovery of items
759	759	17 previously deducted from adjusted gross income in the
760	760	18 computation of taxable income;
761	761	19 (J) An amount equal to those dividends included in
762	762	20 such total which were paid by a corporation which
763	763	21 conducts business operations in a River Edge
764	764	22 Redevelopment Zone or zones created under the River
765	765	23 Edge Redevelopment Zone Act, and conducts
766	766	24 substantially all of its operations in a River Edge
767	767	25 Redevelopment Zone or zones. This subparagraph (J) is
768	768	26 exempt from the provisions of Section 250;
769	769
770	770
771	771
772	772
773	773
774	774	SB1467 - 21 - LRB103 28709 LNS 55091 b
775	775
776	776
777	777	SB1467- 22 -LRB103 28709 LNS 55091 b SB1467 - 22 - LRB103 28709 LNS 55091 b
778	778	SB1467 - 22 - LRB103 28709 LNS 55091 b
779	779	1 (K) An amount equal to those dividends included in
780	780	2 such total that were paid by a corporation that
781	781	3 conducts business operations in a federally designated
782	782	4 Foreign Trade Zone or Sub-Zone and that is designated
783	783	5 a High Impact Business located in Illinois; provided
784	784	6 that dividends eligible for the deduction provided in
785	785	7 subparagraph (J) of paragraph (2) of this subsection
786	786	8 shall not be eligible for the deduction provided under
787	787	9 this subparagraph (K);
788	788	10 (L) For taxable years ending after December 31,
789	789	11 1983, an amount equal to all social security benefits
790	790	12 and railroad retirement benefits included in such
791	791	13 total pursuant to Sections 72(r) and 86 of the
792	792	14 Internal Revenue Code;
793	793	15 (M) With the exception of any amounts subtracted
794	794	16 under subparagraph (N), an amount equal to the sum of
795	795	17 all amounts disallowed as deductions by (i) Sections
796	796	18 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
797	797	19 and all amounts of expenses allocable to interest and
798	798	20 disallowed as deductions by Section 265(a)(1) of the
799	799	21 Internal Revenue Code; and (ii) for taxable years
800	800	22 ending on or after August 13, 1999, Sections
801	801	23 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
802	802	24 Internal Revenue Code, plus, for taxable years ending
803	803	25 on or after December 31, 2011, Section 45G(e)(3) of
804	804	26 the Internal Revenue Code and, for taxable years
805	805
806	806
807	807
808	808
809	809
810	810	SB1467 - 22 - LRB103 28709 LNS 55091 b
811	811
812	812
813	813	SB1467- 23 -LRB103 28709 LNS 55091 b SB1467 - 23 - LRB103 28709 LNS 55091 b
814	814	SB1467 - 23 - LRB103 28709 LNS 55091 b
815	815	1 ending on or after December 31, 2008, any amount
816	816	2 included in gross income under Section 87 of the
817	817	3 Internal Revenue Code; the provisions of this
818	818	4 subparagraph are exempt from the provisions of Section
819	819	5 250;
820	820	6 (N) An amount equal to all amounts included in
821	821	7 such total which are exempt from taxation by this
822	822	8 State either by reason of its statutes or Constitution
823	823	9 or by reason of the Constitution, treaties or statutes
824	824	10 of the United States; provided that, in the case of any
825	825	11 statute of this State that exempts income derived from
826	826	12 bonds or other obligations from the tax imposed under
827	827	13 this Act, the amount exempted shall be the interest
828	828	14 net of bond premium amortization;
829	829	15 (O) An amount equal to any contribution made to a
830	830	16 job training project established pursuant to the Tax
831	831	17 Increment Allocation Redevelopment Act;
832	832	18 (P) An amount equal to the amount of the deduction
833	833	19 used to compute the federal income tax credit for
834	834	20 restoration of substantial amounts held under claim of
835	835	21 right for the taxable year pursuant to Section 1341 of
836	836	22 the Internal Revenue Code or of any itemized deduction
837	837	23 taken from adjusted gross income in the computation of
838	838	24 taxable income for restoration of substantial amounts
839	839	25 held under claim of right for the taxable year;
840	840	26 (Q) An amount equal to any amounts included in
841	841
842	842
843	843
844	844
845	845
846	846	SB1467 - 23 - LRB103 28709 LNS 55091 b
847	847
848	848
849	849	SB1467- 24 -LRB103 28709 LNS 55091 b SB1467 - 24 - LRB103 28709 LNS 55091 b
850	850	SB1467 - 24 - LRB103 28709 LNS 55091 b
851	851	1 such total, received by the taxpayer as an
852	852	2 acceleration in the payment of life, endowment or
853	853	3 annuity benefits in advance of the time they would
854	854	4 otherwise be payable as an indemnity for a terminal
855	855	5 illness;
856	856	6 (R) An amount equal to the amount of any federal or
857	857	7 State bonus paid to veterans of the Persian Gulf War;
858	858	8 (S) An amount, to the extent included in adjusted
859	859	9 gross income, equal to the amount of a contribution
860	860	10 made in the taxable year on behalf of the taxpayer to a
861	861	11 medical care savings account established under the
862	862	12 Medical Care Savings Account Act or the Medical Care
863	863	13 Savings Account Act of 2000 to the extent the
864	864	14 contribution is accepted by the account administrator
865	865	15 as provided in that Act;
866	866	16 (T) An amount, to the extent included in adjusted
867	867	17 gross income, equal to the amount of interest earned
868	868	18 in the taxable year on a medical care savings account
869	869	19 established under the Medical Care Savings Account Act
870	870	20 or the Medical Care Savings Account Act of 2000 on
871	871	21 behalf of the taxpayer, other than interest added
872	872	22 pursuant to item (D-5) of this paragraph (2);
873	873	23 (U) For one taxable year beginning on or after
874	874	24 January 1, 1994, an amount equal to the total amount of
875	875	25 tax imposed and paid under subsections (a) and (b) of
876	876	26 Section 201 of this Act on grant amounts received by
877	877
878	878
879	879
880	880
881	881
882	882	SB1467 - 24 - LRB103 28709 LNS 55091 b
883	883
884	884
885	885	SB1467- 25 -LRB103 28709 LNS 55091 b SB1467 - 25 - LRB103 28709 LNS 55091 b
886	886	SB1467 - 25 - LRB103 28709 LNS 55091 b
887	887	1 the taxpayer under the Nursing Home Grant Assistance
888	888	2 Act during the taxpayer's taxable years 1992 and 1993;
889	889	3 (V) Beginning with tax years ending on or after
890	890	4 December 31, 1995 and ending with tax years ending on
891	891	5 or before December 31, 2004, an amount equal to the
892	892	6 amount paid by a taxpayer who is a self-employed
893	893	7 taxpayer, a partner of a partnership, or a shareholder
894	894	8 in a Subchapter S corporation for health insurance or
895	895	9 long-term care insurance for that taxpayer or that
896	896	10 taxpayer's spouse or dependents, to the extent that
897	897	11 the amount paid for that health insurance or long-term
898	898	12 care insurance may be deducted under Section 213 of
899	899	13 the Internal Revenue Code, has not been deducted on
900	900	14 the federal income tax return of the taxpayer, and
901	901	15 does not exceed the taxable income attributable to
902	902	16 that taxpayer's income, self-employment income, or
903	903	17 Subchapter S corporation income; except that no
904	904	18 deduction shall be allowed under this item (V) if the
905	905	19 taxpayer is eligible to participate in any health
906	906	20 insurance or long-term care insurance plan of an
907	907	21 employer of the taxpayer or the taxpayer's spouse. The
908	908	22 amount of the health insurance and long-term care
909	909	23 insurance subtracted under this item (V) shall be
910	910	24 determined by multiplying total health insurance and
911	911	25 long-term care insurance premiums paid by the taxpayer
912	912	26 times a number that represents the fractional
913	913
914	914
915	915
916	916
917	917
918	918	SB1467 - 25 - LRB103 28709 LNS 55091 b
919	919
920	920
921	921	SB1467- 26 -LRB103 28709 LNS 55091 b SB1467 - 26 - LRB103 28709 LNS 55091 b
922	922	SB1467 - 26 - LRB103 28709 LNS 55091 b
923	923	1 percentage of eligible medical expenses under Section
924	924	2 213 of the Internal Revenue Code of 1986 not actually
925	925	3 deducted on the taxpayer's federal income tax return;
926	926	4 (W) For taxable years beginning on or after
927	927	5 January 1, 1998, all amounts included in the
928	928	6 taxpayer's federal gross income in the taxable year
929	929	7 from amounts converted from a regular IRA to a Roth
930	930	8 IRA. This paragraph is exempt from the provisions of
931	931	9 Section 250;
932	932	10 (X) For taxable year 1999 and thereafter, an
933	933	11 amount equal to the amount of any (i) distributions,
934	934	12 to the extent includible in gross income for federal
935	935	13 income tax purposes, made to the taxpayer because of
936	936	14 his or her status as a victim of persecution for racial
937	937	15 or religious reasons by Nazi Germany or any other Axis
938	938	16 regime or as an heir of the victim and (ii) items of
939	939	17 income, to the extent includible in gross income for
940	940	18 federal income tax purposes, attributable to, derived
941	941	19 from or in any way related to assets stolen from,
942	942	20 hidden from, or otherwise lost to a victim of
943	943	21 persecution for racial or religious reasons by Nazi
944	944	22 Germany or any other Axis regime immediately prior to,
945	945	23 during, and immediately after World War II, including,
946	946	24 but not limited to, interest on the proceeds
947	947	25 receivable as insurance under policies issued to a
948	948	26 victim of persecution for racial or religious reasons
949	949
950	950
951	951
952	952
953	953
954	954	SB1467 - 26 - LRB103 28709 LNS 55091 b
955	955
956	956
957	957	SB1467- 27 -LRB103 28709 LNS 55091 b SB1467 - 27 - LRB103 28709 LNS 55091 b
958	958	SB1467 - 27 - LRB103 28709 LNS 55091 b
959	959	1 by Nazi Germany or any other Axis regime by European
960	960	2 insurance companies immediately prior to and during
961	961	3 World War II; provided, however, this subtraction from
962	962	4 federal adjusted gross income does not apply to assets
963	963	5 acquired with such assets or with the proceeds from
964	964	6 the sale of such assets; provided, further, this
965	965	7 paragraph shall only apply to a taxpayer who was the
966	966	8 first recipient of such assets after their recovery
967	967	9 and who is a victim of persecution for racial or
968	968	10 religious reasons by Nazi Germany or any other Axis
969	969	11 regime or as an heir of the victim. The amount of and
970	970	12 the eligibility for any public assistance, benefit, or
971	971	13 similar entitlement is not affected by the inclusion
972	972	14 of items (i) and (ii) of this paragraph in gross income
973	973	15 for federal income tax purposes. This paragraph is
974	974	16 exempt from the provisions of Section 250;
975	975	17 (Y) For taxable years beginning on or after
976	976	18 January 1, 2002 and ending on or before December 31,
977	977	19 2004, moneys contributed in the taxable year to a
978	978	20 College Savings Pool account under Section 16.5 of the
979	979	21 State Treasurer Act, except that amounts excluded from
980	980	22 gross income under Section 529(c)(3)(C)(i) of the
981	981	23 Internal Revenue Code shall not be considered moneys
982	982	24 contributed under this subparagraph (Y). For taxable
983	983	25 years beginning on or after January 1, 2005, a maximum
984	984	26 of $10,000 contributed in the taxable year to (i) a
985	985
986	986
987	987
988	988
989	989
990	990	SB1467 - 27 - LRB103 28709 LNS 55091 b
991	991
992	992
993	993	SB1467- 28 -LRB103 28709 LNS 55091 b SB1467 - 28 - LRB103 28709 LNS 55091 b
994	994	SB1467 - 28 - LRB103 28709 LNS 55091 b
995	995	1 College Savings Pool account under Section 16.5 of the
996	996	2 State Treasurer Act or (ii) the Illinois Prepaid
997	997	3 Tuition Trust Fund, except that amounts excluded from
998	998	4 gross income under Section 529(c)(3)(C)(i) of the
999	999	5 Internal Revenue Code shall not be considered moneys
1000	1000	6 contributed under this subparagraph (Y). For purposes
1001	1001	7 of this subparagraph, contributions made by an
1002	1002	8 employer on behalf of an employee, or matching
1003	1003	9 contributions made by an employee, shall be treated as
1004	1004	10 made by the employee. This subparagraph (Y) is exempt
1005	1005	11 from the provisions of Section 250;
1006	1006	12 (Z) For taxable years 2001 and thereafter, for the
1007	1007	13 taxable year in which the bonus depreciation deduction
1008	1008	14 is taken on the taxpayer's federal income tax return
1009	1009	15 under subsection (k) of Section 168 of the Internal
1010	1010	16 Revenue Code and for each applicable taxable year
1011	1011	17 thereafter, an amount equal to "x", where:
1012	1012	18 (1) "y" equals the amount of the depreciation
1013	1013	19 deduction taken for the taxable year on the
1014	1014	20 taxpayer's federal income tax return on property
1015	1015	21 for which the bonus depreciation deduction was
1016	1016	22 taken in any year under subsection (k) of Section
1017	1017	23 168 of the Internal Revenue Code, but not
1018	1018	24 including the bonus depreciation deduction;
1019	1019	25 (2) for taxable years ending on or before
1020	1020	26 December 31, 2005, "x" equals "y" multiplied by 30
1021	1021
1022	1022
1023	1023
1024	1024
1025	1025
1026	1026	SB1467 - 28 - LRB103 28709 LNS 55091 b
1027	1027
1028	1028
1029	1029	SB1467- 29 -LRB103 28709 LNS 55091 b SB1467 - 29 - LRB103 28709 LNS 55091 b
1030	1030	SB1467 - 29 - LRB103 28709 LNS 55091 b
1031	1031	1 and then divided by 70 (or "y" multiplied by
1032	1032	2 0.429); and
1033	1033	3 (3) for taxable years ending after December
1034	1034	4 31, 2005:
1035	1035	5 (i) for property on which a bonus
1036	1036	6 depreciation deduction of 30% of the adjusted
1037	1037	7 basis was taken, "x" equals "y" multiplied by
1038	1038	8 30 and then divided by 70 (or "y" multiplied
1039	1039	9 by 0.429);
1040	1040	10 (ii) for property on which a bonus
1041	1041	11 depreciation deduction of 50% of the adjusted
1042	1042	12 basis was taken, "x" equals "y" multiplied by
1043	1043	13 1.0;
1044	1044	14 (iii) for property on which a bonus
1045	1045	15 depreciation deduction of 100% of the adjusted
1046	1046	16 basis was taken in a taxable year ending on or
1047	1047	17 after December 31, 2021, "x" equals the
1048	1048	18 depreciation deduction that would be allowed
1049	1049	19 on that property if the taxpayer had made the
1050	1050	20 election under Section 168(k)(7) of the
1051	1051	21 Internal Revenue Code to not claim bonus
1052	1052	22 depreciation on that property; and
1053	1053	23 (iv) for property on which a bonus
1054	1054	24 depreciation deduction of a percentage other
1055	1055	25 than 30%, 50% or 100% of the adjusted basis
1056	1056	26 was taken in a taxable year ending on or after
1057	1057
1058	1058
1059	1059
1060	1060
1061	1061
1062	1062	SB1467 - 29 - LRB103 28709 LNS 55091 b
1063	1063
1064	1064
1065	1065	SB1467- 30 -LRB103 28709 LNS 55091 b SB1467 - 30 - LRB103 28709 LNS 55091 b
1066	1066	SB1467 - 30 - LRB103 28709 LNS 55091 b
1067	1067	1 December 31, 2021, "x" equals "y" multiplied
1068	1068	2 by 100 times the percentage bonus depreciation
1069	1069	3 on the property (that is, 100(bonus%)) and
1070	1070	4 then divided by 100 times 1 minus the
1071	1071	5 percentage bonus depreciation on the property
1072	1072	6 (that is, 100(1bonus%)).
1073	1073	7 The aggregate amount deducted under this
1074	1074	8 subparagraph in all taxable years for any one piece of
1075	1075	9 property may not exceed the amount of the bonus
1076	1076	10 depreciation deduction taken on that property on the
1077	1077	11 taxpayer's federal income tax return under subsection
1078	1078	12 (k) of Section 168 of the Internal Revenue Code. This
1079	1079	13 subparagraph (Z) is exempt from the provisions of
1080	1080	14 Section 250;
1081	1081	15 (AA) If the taxpayer sells, transfers, abandons,
1082	1082	16 or otherwise disposes of property for which the
1083	1083	17 taxpayer was required in any taxable year to make an
1084	1084	18 addition modification under subparagraph (D-15), then
1085	1085	19 an amount equal to that addition modification.
1086	1086	20 If the taxpayer continues to own property through
1087	1087	21 the last day of the last tax year for which a
1088	1088	22 subtraction is allowed with respect to that property
1089	1089	23 under subparagraph (Z) and for which the taxpayer was
1090	1090	24 required in any taxable year to make an addition
1091	1091	25 modification under subparagraph (D-15), then an amount
1092	1092	26 equal to that addition modification.
1093	1093
1094	1094
1095	1095
1096	1096
1097	1097
1098	1098	SB1467 - 30 - LRB103 28709 LNS 55091 b
1099	1099
1100	1100
1101	1101	SB1467- 31 -LRB103 28709 LNS 55091 b SB1467 - 31 - LRB103 28709 LNS 55091 b
1102	1102	SB1467 - 31 - LRB103 28709 LNS 55091 b
1103	1103	1 The taxpayer is allowed to take the deduction
1104	1104	2 under this subparagraph only once with respect to any
1105	1105	3 one piece of property.
1106	1106	4 This subparagraph (AA) is exempt from the
1107	1107	5 provisions of Section 250;
1108	1108	6 (BB) Any amount included in adjusted gross income,
1109	1109	7 other than salary, received by a driver in a
1110	1110	8 ridesharing arrangement using a motor vehicle;
1111	1111	9 (CC) The amount of (i) any interest income (net of
1112	1112	10 the deductions allocable thereto) taken into account
1113	1113	11 for the taxable year with respect to a transaction
1114	1114	12 with a taxpayer that is required to make an addition
1115	1115	13 modification with respect to such transaction under
1116	1116	14 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1117	1117	15 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1118	1118	16 the amount of that addition modification, and (ii) any
1119	1119	17 income from intangible property (net of the deductions
1120	1120	18 allocable thereto) taken into account for the taxable
1121	1121	19 year with respect to a transaction with a taxpayer
1122	1122	20 that is required to make an addition modification with
1123	1123	21 respect to such transaction under Section
1124	1124	22 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
1125	1125	23 203(d)(2)(D-8), but not to exceed the amount of that
1126	1126	24 addition modification. This subparagraph (CC) is
1127	1127	25 exempt from the provisions of Section 250;
1128	1128	26 (DD) An amount equal to the interest income taken
1129	1129
1130	1130
1131	1131
1132	1132
1133	1133
1134	1134	SB1467 - 31 - LRB103 28709 LNS 55091 b
1135	1135
1136	1136
1137	1137	SB1467- 32 -LRB103 28709 LNS 55091 b SB1467 - 32 - LRB103 28709 LNS 55091 b
1138	1138	SB1467 - 32 - LRB103 28709 LNS 55091 b
1139	1139	1 into account for the taxable year (net of the
1140	1140	2 deductions allocable thereto) with respect to
1141	1141	3 transactions with (i) a foreign person who would be a
1142	1142	4 member of the taxpayer's unitary business group but
1143	1143	5 for the fact that the foreign person's business
1144	1144	6 activity outside the United States is 80% or more of
1145	1145	7 that person's total business activity and (ii) for
1146	1146	8 taxable years ending on or after December 31, 2008, to
1147	1147	9 a person who would be a member of the same unitary
1148	1148	10 business group but for the fact that the person is
1149	1149	11 prohibited under Section 1501(a)(27) from being
1150	1150	12 included in the unitary business group because he or
1151	1151	13 she is ordinarily required to apportion business
1152	1152	14 income under different subsections of Section 304, but
1153	1153	15 not to exceed the addition modification required to be
1154	1154	16 made for the same taxable year under Section
1155	1155	17 203(a)(2)(D-17) for interest paid, accrued, or
1156	1156	18 incurred, directly or indirectly, to the same person.
1157	1157	19 This subparagraph (DD) is exempt from the provisions
1158	1158	20 of Section 250;
1159	1159	21 (EE) An amount equal to the income from intangible
1160	1160	22 property taken into account for the taxable year (net
1161	1161	23 of the deductions allocable thereto) with respect to
1162	1162	24 transactions with (i) a foreign person who would be a
1163	1163	25 member of the taxpayer's unitary business group but
1164	1164	26 for the fact that the foreign person's business
1165	1165
1166	1166
1167	1167
1168	1168
1169	1169
1170	1170	SB1467 - 32 - LRB103 28709 LNS 55091 b
1171	1171
1172	1172
1173	1173	SB1467- 33 -LRB103 28709 LNS 55091 b SB1467 - 33 - LRB103 28709 LNS 55091 b
1174	1174	SB1467 - 33 - LRB103 28709 LNS 55091 b
1175	1175	1 activity outside the United States is 80% or more of
1176	1176	2 that person's total business activity and (ii) for
1177	1177	3 taxable years ending on or after December 31, 2008, to
1178	1178	4 a person who would be a member of the same unitary
1179	1179	5 business group but for the fact that the person is
1180	1180	6 prohibited under Section 1501(a)(27) from being
1181	1181	7 included in the unitary business group because he or
1182	1182	8 she is ordinarily required to apportion business
1183	1183	9 income under different subsections of Section 304, but
1184	1184	10 not to exceed the addition modification required to be
1185	1185	11 made for the same taxable year under Section
1186	1186	12 203(a)(2)(D-18) for intangible expenses and costs
1187	1187	13 paid, accrued, or incurred, directly or indirectly, to
1188	1188	14 the same foreign person. This subparagraph (EE) is
1189	1189	15 exempt from the provisions of Section 250;
1190	1190	16 (FF) An amount equal to any amount awarded to the
1191	1191	17 taxpayer during the taxable year by the Court of
1192	1192	18 Claims under subsection (c) of Section 8 of the Court
1193	1193	19 of Claims Act for time unjustly served in a State
1194	1194	20 prison. This subparagraph (FF) is exempt from the
1195	1195	21 provisions of Section 250;
1196	1196	22 (GG) For taxable years ending on or after December
1197	1197	23 31, 2011, in the case of a taxpayer who was required to
1198	1198	24 add back any insurance premiums under Section
1199	1199	25 203(a)(2)(D-19), such taxpayer may elect to subtract
1200	1200	26 that part of a reimbursement received from the
1201	1201
1202	1202
1203	1203
1204	1204
1205	1205
1206	1206	SB1467 - 33 - LRB103 28709 LNS 55091 b
1207	1207
1208	1208
1209	1209	SB1467- 34 -LRB103 28709 LNS 55091 b SB1467 - 34 - LRB103 28709 LNS 55091 b
1210	1210	SB1467 - 34 - LRB103 28709 LNS 55091 b
1211	1211	1 insurance company equal to the amount of the expense
1212	1212	2 or loss (including expenses incurred by the insurance
1213	1213	3 company) that would have been taken into account as a
1214	1214	4 deduction for federal income tax purposes if the
1215	1215	5 expense or loss had been uninsured. If a taxpayer
1216	1216	6 makes the election provided for by this subparagraph
1217	1217	7 (GG), the insurer to which the premiums were paid must
1218	1218	8 add back to income the amount subtracted by the
1219	1219	9 taxpayer pursuant to this subparagraph (GG). This
1220	1220	10 subparagraph (GG) is exempt from the provisions of
1221	1221	11 Section 250;
1222	1222	12 (HH) For taxable years beginning on or after
1223	1223	13 January 1, 2018 and prior to January 1, 2028, a maximum
1224	1224	14 of $10,000 contributed in the taxable year to a
1225	1225	15 qualified ABLE account under Section 16.6 of the State
1226	1226	16 Treasurer Act, except that amounts excluded from gross
1227	1227	17 income under Section 529(c)(3)(C)(i) or Section
1228	1228	18 529A(c)(1)(C) of the Internal Revenue Code shall not
1229	1229	19 be considered moneys contributed under this
1230	1230	20 subparagraph (HH). For purposes of this subparagraph
1231	1231	21 (HH), contributions made by an employer on behalf of
1232	1232	22 an employee, or matching contributions made by an
1233	1233	23 employee, shall be treated as made by the employee;
1234	1234	24 and
1235	1235	25 (II) For taxable years that begin on or after
1236	1236	26 January 1, 2021 and begin before January 1, 2026, the
1237	1237
1238	1238
1239	1239
1240	1240
1241	1241
1242	1242	SB1467 - 34 - LRB103 28709 LNS 55091 b
1243	1243
1244	1244
1245	1245	SB1467- 35 -LRB103 28709 LNS 55091 b SB1467 - 35 - LRB103 28709 LNS 55091 b
1246	1246	SB1467 - 35 - LRB103 28709 LNS 55091 b
1247	1247	1 amount that is included in the taxpayer's federal
1248	1248	2 adjusted gross income pursuant to Section 61 of the
1249	1249	3 Internal Revenue Code as discharge of indebtedness
1250	1250	4 attributable to student loan forgiveness and that is
1251	1251	5 not excluded from the taxpayer's federal adjusted
1252	1252	6 gross income pursuant to paragraph (5) of subsection
1253	1253	7 (f) of Section 108 of the Internal Revenue Code; and .
1254	1254	8 (JJ) To the extent includible in gross income for
1255	1255	9 federal income tax purposes, any amount awarded or
1256	1256	10 paid to the taxpayer as a result of a judgment or
1257	1257	11 settlement for fertility fraud as provided in Section
1258	1258	12 15 of the Illinois Fertility Fraud Act or similar
1259	1259	13 action in another state.
1260	1260	14 (b) Corporations.
1261	1261	15 (1) In general. In the case of a corporation, base
1262	1262	16 income means an amount equal to the taxpayer's taxable
1263	1263	17 income for the taxable year as modified by paragraph (2).
1264	1264	18 (2) Modifications. The taxable income referred to in
1265	1265	19 paragraph (1) shall be modified by adding thereto the sum
1266	1266	20 of the following amounts:
1267	1267	21 (A) An amount equal to all amounts paid or accrued
1268	1268	22 to the taxpayer as interest and all distributions
1269	1269	23 received from regulated investment companies during
1270	1270	24 the taxable year to the extent excluded from gross
1271	1271	25 income in the computation of taxable income;
1272	1272
1273	1273
1274	1274
1275	1275
1276	1276
1277	1277	SB1467 - 35 - LRB103 28709 LNS 55091 b
1278	1278
1279	1279
1280	1280	SB1467- 36 -LRB103 28709 LNS 55091 b SB1467 - 36 - LRB103 28709 LNS 55091 b
1281	1281	SB1467 - 36 - LRB103 28709 LNS 55091 b
1282	1282	1 (B) An amount equal to the amount of tax imposed by
1283	1283	2 this Act to the extent deducted from gross income in
1284	1284	3 the computation of taxable income for the taxable
1285	1285	4 year;
1286	1286	5 (C) In the case of a regulated investment company,
1287	1287	6 an amount equal to the excess of (i) the net long-term
1288	1288	7 capital gain for the taxable year, over (ii) the
1289	1289	8 amount of the capital gain dividends designated as
1290	1290	9 such in accordance with Section 852(b)(3)(C) of the
1291	1291	10 Internal Revenue Code and any amount designated under
1292	1292	11 Section 852(b)(3)(D) of the Internal Revenue Code,
1293	1293	12 attributable to the taxable year (this amendatory Act
1294	1294	13 of 1995 (Public Act 89-89) is declarative of existing
1295	1295	14 law and is not a new enactment);
1296	1296	15 (D) The amount of any net operating loss deduction
1297	1297	16 taken in arriving at taxable income, other than a net
1298	1298	17 operating loss carried forward from a taxable year
1299	1299	18 ending prior to December 31, 1986;
1300	1300	19 (E) For taxable years in which a net operating
1301	1301	20 loss carryback or carryforward from a taxable year
1302	1302	21 ending prior to December 31, 1986 is an element of
1303	1303	22 taxable income under paragraph (1) of subsection (e)
1304	1304	23 or subparagraph (E) of paragraph (2) of subsection
1305	1305	24 (e), the amount by which addition modifications other
1306	1306	25 than those provided by this subparagraph (E) exceeded
1307	1307	26 subtraction modifications in such earlier taxable
1308	1308
1309	1309
1310	1310
1311	1311
1312	1312
1313	1313	SB1467 - 36 - LRB103 28709 LNS 55091 b
1314	1314
1315	1315
1316	1316	SB1467- 37 -LRB103 28709 LNS 55091 b SB1467 - 37 - LRB103 28709 LNS 55091 b
1317	1317	SB1467 - 37 - LRB103 28709 LNS 55091 b
1318	1318	1 year, with the following limitations applied in the
1319	1319	2 order that they are listed:
1320	1320	3 (i) the addition modification relating to the
1321	1321	4 net operating loss carried back or forward to the
1322	1322	5 taxable year from any taxable year ending prior to
1323	1323	6 December 31, 1986 shall be reduced by the amount
1324	1324	7 of addition modification under this subparagraph
1325	1325	8 (E) which related to that net operating loss and
1326	1326	9 which was taken into account in calculating the
1327	1327	10 base income of an earlier taxable year, and
1328	1328	11 (ii) the addition modification relating to the
1329	1329	12 net operating loss carried back or forward to the
1330	1330	13 taxable year from any taxable year ending prior to
1331	1331	14 December 31, 1986 shall not exceed the amount of
1332	1332	15 such carryback or carryforward;
1333	1333	16 For taxable years in which there is a net
1334	1334	17 operating loss carryback or carryforward from more
1335	1335	18 than one other taxable year ending prior to December
1336	1336	19 31, 1986, the addition modification provided in this
1337	1337	20 subparagraph (E) shall be the sum of the amounts
1338	1338	21 computed independently under the preceding provisions
1339	1339	22 of this subparagraph (E) for each such taxable year;
1340	1340	23 (E-5) For taxable years ending after December 31,
1341	1341	24 1997, an amount equal to any eligible remediation
1342	1342	25 costs that the corporation deducted in computing
1343	1343	26 adjusted gross income and for which the corporation
1344	1344
1345	1345
1346	1346
1347	1347
1348	1348
1349	1349	SB1467 - 37 - LRB103 28709 LNS 55091 b
1350	1350
1351	1351
1352	1352	SB1467- 38 -LRB103 28709 LNS 55091 b SB1467 - 38 - LRB103 28709 LNS 55091 b
1353	1353	SB1467 - 38 - LRB103 28709 LNS 55091 b
1354	1354	1 claims a credit under subsection (l) of Section 201;
1355	1355	2 (E-10) For taxable years 2001 and thereafter, an
1356	1356	3 amount equal to the bonus depreciation deduction taken
1357	1357	4 on the taxpayer's federal income tax return for the
1358	1358	5 taxable year under subsection (k) of Section 168 of
1359	1359	6 the Internal Revenue Code;
1360	1360	7 (E-11) If the taxpayer sells, transfers, abandons,
1361	1361	8 or otherwise disposes of property for which the
1362	1362	9 taxpayer was required in any taxable year to make an
1363	1363	10 addition modification under subparagraph (E-10), then
1364	1364	11 an amount equal to the aggregate amount of the
1365	1365	12 deductions taken in all taxable years under
1366	1366	13 subparagraph (T) with respect to that property.
1367	1367	14 If the taxpayer continues to own property through
1368	1368	15 the last day of the last tax year for which a
1369	1369	16 subtraction is allowed with respect to that property
1370	1370	17 under subparagraph (T) and for which the taxpayer was
1371	1371	18 allowed in any taxable year to make a subtraction
1372	1372	19 modification under subparagraph (T), then an amount
1373	1373	20 equal to that subtraction modification.
1374	1374	21 The taxpayer is required to make the addition
1375	1375	22 modification under this subparagraph only once with
1376	1376	23 respect to any one piece of property;
1377	1377	24 (E-12) An amount equal to the amount otherwise
1378	1378	25 allowed as a deduction in computing base income for
1379	1379	26 interest paid, accrued, or incurred, directly or
1380	1380
1381	1381
1382	1382
1383	1383
1384	1384
1385	1385	SB1467 - 38 - LRB103 28709 LNS 55091 b
1386	1386
1387	1387
1388	1388	SB1467- 39 -LRB103 28709 LNS 55091 b SB1467 - 39 - LRB103 28709 LNS 55091 b
1389	1389	SB1467 - 39 - LRB103 28709 LNS 55091 b
1390	1390	1 indirectly, (i) for taxable years ending on or after
1391	1391	2 December 31, 2004, to a foreign person who would be a
1392	1392	3 member of the same unitary business group but for the
1393	1393	4 fact the foreign person's business activity outside
1394	1394	5 the United States is 80% or more of the foreign
1395	1395	6 person's total business activity and (ii) for taxable
1396	1396	7 years ending on or after December 31, 2008, to a person
1397	1397	8 who would be a member of the same unitary business
1398	1398	9 group but for the fact that the person is prohibited
1399	1399	10 under Section 1501(a)(27) from being included in the
1400	1400	11 unitary business group because he or she is ordinarily
1401	1401	12 required to apportion business income under different
1402	1402	13 subsections of Section 304. The addition modification
1403	1403	14 required by this subparagraph shall be reduced to the
1404	1404	15 extent that dividends were included in base income of
1405	1405	16 the unitary group for the same taxable year and
1406	1406	17 received by the taxpayer or by a member of the
1407	1407	18 taxpayer's unitary business group (including amounts
1408	1408	19 included in gross income pursuant to Sections 951
1409	1409	20 through 964 of the Internal Revenue Code and amounts
1410	1410	21 included in gross income under Section 78 of the
1411	1411	22 Internal Revenue Code) with respect to the stock of
1412	1412	23 the same person to whom the interest was paid,
1413	1413	24 accrued, or incurred.
1414	1414	25 This paragraph shall not apply to the following:
1415	1415	26 (i) an item of interest paid, accrued, or
1416	1416
1417	1417
1418	1418
1419	1419
1420	1420
1421	1421	SB1467 - 39 - LRB103 28709 LNS 55091 b
1422	1422
1423	1423
1424	1424	SB1467- 40 -LRB103 28709 LNS 55091 b SB1467 - 40 - LRB103 28709 LNS 55091 b
1425	1425	SB1467 - 40 - LRB103 28709 LNS 55091 b
1426	1426	1 incurred, directly or indirectly, to a person who
1427	1427	2 is subject in a foreign country or state, other
1428	1428	3 than a state which requires mandatory unitary
1429	1429	4 reporting, to a tax on or measured by net income
1430	1430	5 with respect to such interest; or
1431	1431	6 (ii) an item of interest paid, accrued, or
1432	1432	7 incurred, directly or indirectly, to a person if
1433	1433	8 the taxpayer can establish, based on a
1434	1434	9 preponderance of the evidence, both of the
1435	1435	10 following:
1436	1436	11 (a) the person, during the same taxable
1437	1437	12 year, paid, accrued, or incurred, the interest
1438	1438	13 to a person that is not a related member, and
1439	1439	14 (b) the transaction giving rise to the
1440	1440	15 interest expense between the taxpayer and the
1441	1441	16 person did not have as a principal purpose the
1442	1442	17 avoidance of Illinois income tax, and is paid
1443	1443	18 pursuant to a contract or agreement that
1444	1444	19 reflects an arm's-length interest rate and
1445	1445	20 terms; or
1446	1446	21 (iii) the taxpayer can establish, based on
1447	1447	22 clear and convincing evidence, that the interest
1448	1448	23 paid, accrued, or incurred relates to a contract
1449	1449	24 or agreement entered into at arm's-length rates
1450	1450	25 and terms and the principal purpose for the
1451	1451	26 payment is not federal or Illinois tax avoidance;
1452	1452
1453	1453
1454	1454
1455	1455
1456	1456
1457	1457	SB1467 - 40 - LRB103 28709 LNS 55091 b
1458	1458
1459	1459
1460	1460	SB1467- 41 -LRB103 28709 LNS 55091 b SB1467 - 41 - LRB103 28709 LNS 55091 b
1461	1461	SB1467 - 41 - LRB103 28709 LNS 55091 b
1462	1462	1 or
1463	1463	2 (iv) an item of interest paid, accrued, or
1464	1464	3 incurred, directly or indirectly, to a person if
1465	1465	4 the taxpayer establishes by clear and convincing
1466	1466	5 evidence that the adjustments are unreasonable; or
1467	1467	6 if the taxpayer and the Director agree in writing
1468	1468	7 to the application or use of an alternative method
1469	1469	8 of apportionment under Section 304(f).
1470	1470	9 Nothing in this subsection shall preclude the
1471	1471	10 Director from making any other adjustment
1472	1472	11 otherwise allowed under Section 404 of this Act
1473	1473	12 for any tax year beginning after the effective
1474	1474	13 date of this amendment provided such adjustment is
1475	1475	14 made pursuant to regulation adopted by the
1476	1476	15 Department and such regulations provide methods
1477	1477	16 and standards by which the Department will utilize
1478	1478	17 its authority under Section 404 of this Act;
1479	1479	18 (E-13) An amount equal to the amount of intangible
1480	1480	19 expenses and costs otherwise allowed as a deduction in
1481	1481	20 computing base income, and that were paid, accrued, or
1482	1482	21 incurred, directly or indirectly, (i) for taxable
1483	1483	22 years ending on or after December 31, 2004, to a
1484	1484	23 foreign person who would be a member of the same
1485	1485	24 unitary business group but for the fact that the
1486	1486	25 foreign person's business activity outside the United
1487	1487	26 States is 80% or more of that person's total business
1488	1488
1489	1489
1490	1490
1491	1491
1492	1492
1493	1493	SB1467 - 41 - LRB103 28709 LNS 55091 b
1494	1494
1495	1495
1496	1496	SB1467- 42 -LRB103 28709 LNS 55091 b SB1467 - 42 - LRB103 28709 LNS 55091 b
1497	1497	SB1467 - 42 - LRB103 28709 LNS 55091 b
1498	1498	1 activity and (ii) for taxable years ending on or after
1499	1499	2 December 31, 2008, to a person who would be a member of
1500	1500	3 the same unitary business group but for the fact that
1501	1501	4 the person is prohibited under Section 1501(a)(27)
1502	1502	5 from being included in the unitary business group
1503	1503	6 because he or she is ordinarily required to apportion
1504	1504	7 business income under different subsections of Section
1505	1505	8 304. The addition modification required by this
1506	1506	9 subparagraph shall be reduced to the extent that
1507	1507	10 dividends were included in base income of the unitary
1508	1508	11 group for the same taxable year and received by the
1509	1509	12 taxpayer or by a member of the taxpayer's unitary
1510	1510	13 business group (including amounts included in gross
1511	1511	14 income pursuant to Sections 951 through 964 of the
1512	1512	15 Internal Revenue Code and amounts included in gross
1513	1513	16 income under Section 78 of the Internal Revenue Code)
1514	1514	17 with respect to the stock of the same person to whom
1515	1515	18 the intangible expenses and costs were directly or
1516	1516	19 indirectly paid, incurred, or accrued. The preceding
1517	1517	20 sentence shall not apply to the extent that the same
1518	1518	21 dividends caused a reduction to the addition
1519	1519	22 modification required under Section 203(b)(2)(E-12) of
1520	1520	23 this Act. As used in this subparagraph, the term
1521	1521	24 "intangible expenses and costs" includes (1) expenses,
1522	1522	25 losses, and costs for, or related to, the direct or
1523	1523	26 indirect acquisition, use, maintenance or management,
1524	1524
1525	1525
1526	1526
1527	1527
1528	1528
1529	1529	SB1467 - 42 - LRB103 28709 LNS 55091 b
1530	1530
1531	1531
1532	1532	SB1467- 43 -LRB103 28709 LNS 55091 b SB1467 - 43 - LRB103 28709 LNS 55091 b
1533	1533	SB1467 - 43 - LRB103 28709 LNS 55091 b
1534	1534	1 ownership, sale, exchange, or any other disposition of
1535	1535	2 intangible property; (2) losses incurred, directly or
1536	1536	3 indirectly, from factoring transactions or discounting
1537	1537	4 transactions; (3) royalty, patent, technical, and
1538	1538	5 copyright fees; (4) licensing fees; and (5) other
1539	1539	6 similar expenses and costs. For purposes of this
1540	1540	7 subparagraph, "intangible property" includes patents,
1541	1541	8 patent applications, trade names, trademarks, service
1542	1542	9 marks, copyrights, mask works, trade secrets, and
1543	1543	10 similar types of intangible assets.
1544	1544	11 This paragraph shall not apply to the following:
1545	1545	12 (i) any item of intangible expenses or costs
1546	1546	13 paid, accrued, or incurred, directly or
1547	1547	14 indirectly, from a transaction with a person who
1548	1548	15 is subject in a foreign country or state, other
1549	1549	16 than a state which requires mandatory unitary
1550	1550	17 reporting, to a tax on or measured by net income
1551	1551	18 with respect to such item; or
1552	1552	19 (ii) any item of intangible expense or cost
1553	1553	20 paid, accrued, or incurred, directly or
1554	1554	21 indirectly, if the taxpayer can establish, based
1555	1555	22 on a preponderance of the evidence, both of the
1556	1556	23 following:
1557	1557	24 (a) the person during the same taxable
1558	1558	25 year paid, accrued, or incurred, the
1559	1559	26 intangible expense or cost to a person that is
1560	1560
1561	1561
1562	1562
1563	1563
1564	1564
1565	1565	SB1467 - 43 - LRB103 28709 LNS 55091 b
1566	1566
1567	1567
1568	1568	SB1467- 44 -LRB103 28709 LNS 55091 b SB1467 - 44 - LRB103 28709 LNS 55091 b
1569	1569	SB1467 - 44 - LRB103 28709 LNS 55091 b
1570	1570	1 not a related member, and
1571	1571	2 (b) the transaction giving rise to the
1572	1572	3 intangible expense or cost between the
1573	1573	4 taxpayer and the person did not have as a
1574	1574	5 principal purpose the avoidance of Illinois
1575	1575	6 income tax, and is paid pursuant to a contract
1576	1576	7 or agreement that reflects arm's-length terms;
1577	1577	8 or
1578	1578	9 (iii) any item of intangible expense or cost
1579	1579	10 paid, accrued, or incurred, directly or
1580	1580	11 indirectly, from a transaction with a person if
1581	1581	12 the taxpayer establishes by clear and convincing
1582	1582	13 evidence, that the adjustments are unreasonable;
1583	1583	14 or if the taxpayer and the Director agree in
1584	1584	15 writing to the application or use of an
1585	1585	16 alternative method of apportionment under Section
1586	1586	17 304(f);
1587	1587	18 Nothing in this subsection shall preclude the
1588	1588	19 Director from making any other adjustment
1589	1589	20 otherwise allowed under Section 404 of this Act
1590	1590	21 for any tax year beginning after the effective
1591	1591	22 date of this amendment provided such adjustment is
1592	1592	23 made pursuant to regulation adopted by the
1593	1593	24 Department and such regulations provide methods
1594	1594	25 and standards by which the Department will utilize
1595	1595	26 its authority under Section 404 of this Act;
1596	1596
1597	1597
1598	1598
1599	1599
1600	1600
1601	1601	SB1467 - 44 - LRB103 28709 LNS 55091 b
1602	1602
1603	1603
1604	1604	SB1467- 45 -LRB103 28709 LNS 55091 b SB1467 - 45 - LRB103 28709 LNS 55091 b
1605	1605	SB1467 - 45 - LRB103 28709 LNS 55091 b
1606	1606	1 (E-14) For taxable years ending on or after
1607	1607	2 December 31, 2008, an amount equal to the amount of
1608	1608	3 insurance premium expenses and costs otherwise allowed
1609	1609	4 as a deduction in computing base income, and that were
1610	1610	5 paid, accrued, or incurred, directly or indirectly, to
1611	1611	6 a person who would be a member of the same unitary
1612	1612	7 business group but for the fact that the person is
1613	1613	8 prohibited under Section 1501(a)(27) from being
1614	1614	9 included in the unitary business group because he or
1615	1615	10 she is ordinarily required to apportion business
1616	1616	11 income under different subsections of Section 304. The
1617	1617	12 addition modification required by this subparagraph
1618	1618	13 shall be reduced to the extent that dividends were
1619	1619	14 included in base income of the unitary group for the
1620	1620	15 same taxable year and received by the taxpayer or by a
1621	1621	16 member of the taxpayer's unitary business group
1622	1622	17 (including amounts included in gross income under
1623	1623	18 Sections 951 through 964 of the Internal Revenue Code
1624	1624	19 and amounts included in gross income under Section 78
1625	1625	20 of the Internal Revenue Code) with respect to the
1626	1626	21 stock of the same person to whom the premiums and costs
1627	1627	22 were directly or indirectly paid, incurred, or
1628	1628	23 accrued. The preceding sentence does not apply to the
1629	1629	24 extent that the same dividends caused a reduction to
1630	1630	25 the addition modification required under Section
1631	1631	26 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1632	1632
1633	1633
1634	1634
1635	1635
1636	1636
1637	1637	SB1467 - 45 - LRB103 28709 LNS 55091 b
1638	1638
1639	1639
1640	1640	SB1467- 46 -LRB103 28709 LNS 55091 b SB1467 - 46 - LRB103 28709 LNS 55091 b
1641	1641	SB1467 - 46 - LRB103 28709 LNS 55091 b
1642	1642	1 Act;
1643	1643	2 (E-15) For taxable years beginning after December
1644	1644	3 31, 2008, any deduction for dividends paid by a
1645	1645	4 captive real estate investment trust that is allowed
1646	1646	5 to a real estate investment trust under Section
1647	1647	6 857(b)(2)(B) of the Internal Revenue Code for
1648	1648	7 dividends paid;
1649	1649	8 (E-16) An amount equal to the credit allowable to
1650	1650	9 the taxpayer under Section 218(a) of this Act,
1651	1651	10 determined without regard to Section 218(c) of this
1652	1652	11 Act;
1653	1653	12 (E-17) For taxable years ending on or after
1654	1654	13 December 31, 2017, an amount equal to the deduction
1655	1655	14 allowed under Section 199 of the Internal Revenue Code
1656	1656	15 for the taxable year;
1657	1657	16 (E-18) for taxable years beginning after December
1658	1658	17 31, 2018, an amount equal to the deduction allowed
1659	1659	18 under Section 250(a)(1)(A) of the Internal Revenue
1660	1660	19 Code for the taxable year;
1661	1661	20 (E-19) for taxable years ending on or after June
1662	1662	21 30, 2021, an amount equal to the deduction allowed
1663	1663	22 under Section 250(a)(1)(B)(i) of the Internal Revenue
1664	1664	23 Code for the taxable year;
1665	1665	24 (E-20) for taxable years ending on or after June
1666	1666	25 30, 2021, an amount equal to the deduction allowed
1667	1667	26 under Sections 243(e) and 245A(a) of the Internal
1668	1668
1669	1669
1670	1670
1671	1671
1672	1672
1673	1673	SB1467 - 46 - LRB103 28709 LNS 55091 b
1674	1674
1675	1675
1676	1676	SB1467- 47 -LRB103 28709 LNS 55091 b SB1467 - 47 - LRB103 28709 LNS 55091 b
1677	1677	SB1467 - 47 - LRB103 28709 LNS 55091 b
1678	1678	1 Revenue Code for the taxable year.
1679	1679	2 and by deducting from the total so obtained the sum of the
1680	1680	3 following amounts:
1681	1681	4 (F) An amount equal to the amount of any tax
1682	1682	5 imposed by this Act which was refunded to the taxpayer
1683	1683	6 and included in such total for the taxable year;
1684	1684	7 (G) An amount equal to any amount included in such
1685	1685	8 total under Section 78 of the Internal Revenue Code;
1686	1686	9 (H) In the case of a regulated investment company,
1687	1687	10 an amount equal to the amount of exempt interest
1688	1688	11 dividends as defined in subsection (b)(5) of Section
1689	1689	12 852 of the Internal Revenue Code, paid to shareholders
1690	1690	13 for the taxable year;
1691	1691	14 (I) With the exception of any amounts subtracted
1692	1692	15 under subparagraph (J), an amount equal to the sum of
1693	1693	16 all amounts disallowed as deductions by (i) Sections
1694	1694	17 171(a)(2) and 265(a)(2) and amounts disallowed as
1695	1695	18 interest expense by Section 291(a)(3) of the Internal
1696	1696	19 Revenue Code, and all amounts of expenses allocable to
1697	1697	20 interest and disallowed as deductions by Section
1698	1698	21 265(a)(1) of the Internal Revenue Code; and (ii) for
1699	1699	22 taxable years ending on or after August 13, 1999,
1700	1700	23 Sections 171(a)(2), 265, 280C, 291(a)(3), and
1701	1701	24 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
1702	1702	25 for tax years ending on or after December 31, 2011,
1703	1703	26 amounts disallowed as deductions by Section 45G(e)(3)
1704	1704
1705	1705
1706	1706
1707	1707
1708	1708
1709	1709	SB1467 - 47 - LRB103 28709 LNS 55091 b
1710	1710
1711	1711
1712	1712	SB1467- 48 -LRB103 28709 LNS 55091 b SB1467 - 48 - LRB103 28709 LNS 55091 b
1713	1713	SB1467 - 48 - LRB103 28709 LNS 55091 b
1714	1714	1 of the Internal Revenue Code and, for taxable years
1715	1715	2 ending on or after December 31, 2008, any amount
1716	1716	3 included in gross income under Section 87 of the
1717	1717	4 Internal Revenue Code and the policyholders' share of
1718	1718	5 tax-exempt interest of a life insurance company under
1719	1719	6 Section 807(a)(2)(B) of the Internal Revenue Code (in
1720	1720	7 the case of a life insurance company with gross income
1721	1721	8 from a decrease in reserves for the tax year) or
1722	1722	9 Section 807(b)(1)(B) of the Internal Revenue Code (in
1723	1723	10 the case of a life insurance company allowed a
1724	1724	11 deduction for an increase in reserves for the tax
1725	1725	12 year); the provisions of this subparagraph are exempt
1726	1726	13 from the provisions of Section 250;
1727	1727	14 (J) An amount equal to all amounts included in
1728	1728	15 such total which are exempt from taxation by this
1729	1729	16 State either by reason of its statutes or Constitution
1730	1730	17 or by reason of the Constitution, treaties or statutes
1731	1731	18 of the United States; provided that, in the case of any
1732	1732	19 statute of this State that exempts income derived from
1733	1733	20 bonds or other obligations from the tax imposed under
1734	1734	21 this Act, the amount exempted shall be the interest
1735	1735	22 net of bond premium amortization;
1736	1736	23 (K) An amount equal to those dividends included in
1737	1737	24 such total which were paid by a corporation which
1738	1738	25 conducts business operations in a River Edge
1739	1739	26 Redevelopment Zone or zones created under the River
1740	1740
1741	1741
1742	1742
1743	1743
1744	1744
1745	1745	SB1467 - 48 - LRB103 28709 LNS 55091 b
1746	1746
1747	1747
1748	1748	SB1467- 49 -LRB103 28709 LNS 55091 b SB1467 - 49 - LRB103 28709 LNS 55091 b
1749	1749	SB1467 - 49 - LRB103 28709 LNS 55091 b
1750	1750	1 Edge Redevelopment Zone Act and conducts substantially
1751	1751	2 all of its operations in a River Edge Redevelopment
1752	1752	3 Zone or zones. This subparagraph (K) is exempt from
1753	1753	4 the provisions of Section 250;
1754	1754	5 (L) An amount equal to those dividends included in
1755	1755	6 such total that were paid by a corporation that
1756	1756	7 conducts business operations in a federally designated
1757	1757	8 Foreign Trade Zone or Sub-Zone and that is designated
1758	1758	9 a High Impact Business located in Illinois; provided
1759	1759	10 that dividends eligible for the deduction provided in
1760	1760	11 subparagraph (K) of paragraph 2 of this subsection
1761	1761	12 shall not be eligible for the deduction provided under
1762	1762	13 this subparagraph (L);
1763	1763	14 (M) For any taxpayer that is a financial
1764	1764	15 organization within the meaning of Section 304(c) of
1765	1765	16 this Act, an amount included in such total as interest
1766	1766	17 income from a loan or loans made by such taxpayer to a
1767	1767	18 borrower, to the extent that such a loan is secured by
1768	1768	19 property which is eligible for the River Edge
1769	1769	20 Redevelopment Zone Investment Credit. To determine the
1770	1770	21 portion of a loan or loans that is secured by property
1771	1771	22 eligible for a Section 201(f) investment credit to the
1772	1772	23 borrower, the entire principal amount of the loan or
1773	1773	24 loans between the taxpayer and the borrower should be
1774	1774	25 divided into the basis of the Section 201(f)
1775	1775	26 investment credit property which secures the loan or
1776	1776
1777	1777
1778	1778
1779	1779
1780	1780
1781	1781	SB1467 - 49 - LRB103 28709 LNS 55091 b
1782	1782
1783	1783
1784	1784	SB1467- 50 -LRB103 28709 LNS 55091 b SB1467 - 50 - LRB103 28709 LNS 55091 b
1785	1785	SB1467 - 50 - LRB103 28709 LNS 55091 b
1786	1786	1 loans, using for this purpose the original basis of
1787	1787	2 such property on the date that it was placed in service
1788	1788	3 in the River Edge Redevelopment Zone. The subtraction
1789	1789	4 modification available to the taxpayer in any year
1790	1790	5 under this subsection shall be that portion of the
1791	1791	6 total interest paid by the borrower with respect to
1792	1792	7 such loan attributable to the eligible property as
1793	1793	8 calculated under the previous sentence. This
1794	1794	9 subparagraph (M) is exempt from the provisions of
1795	1795	10 Section 250;
1796	1796	11 (M-1) For any taxpayer that is a financial
1797	1797	12 organization within the meaning of Section 304(c) of
1798	1798	13 this Act, an amount included in such total as interest
1799	1799	14 income from a loan or loans made by such taxpayer to a
1800	1800	15 borrower, to the extent that such a loan is secured by
1801	1801	16 property which is eligible for the High Impact
1802	1802	17 Business Investment Credit. To determine the portion
1803	1803	18 of a loan or loans that is secured by property eligible
1804	1804	19 for a Section 201(h) investment credit to the
1805	1805	20 borrower, the entire principal amount of the loan or
1806	1806	21 loans between the taxpayer and the borrower should be
1807	1807	22 divided into the basis of the Section 201(h)
1808	1808	23 investment credit property which secures the loan or
1809	1809	24 loans, using for this purpose the original basis of
1810	1810	25 such property on the date that it was placed in service
1811	1811	26 in a federally designated Foreign Trade Zone or
1812	1812
1813	1813
1814	1814
1815	1815
1816	1816
1817	1817	SB1467 - 50 - LRB103 28709 LNS 55091 b
1818	1818
1819	1819
1820	1820	SB1467- 51 -LRB103 28709 LNS 55091 b SB1467 - 51 - LRB103 28709 LNS 55091 b
1821	1821	SB1467 - 51 - LRB103 28709 LNS 55091 b
1822	1822	1 Sub-Zone located in Illinois. No taxpayer that is
1823	1823	2 eligible for the deduction provided in subparagraph
1824	1824	3 (M) of paragraph (2) of this subsection shall be
1825	1825	4 eligible for the deduction provided under this
1826	1826	5 subparagraph (M-1). The subtraction modification
1827	1827	6 available to taxpayers in any year under this
1828	1828	7 subsection shall be that portion of the total interest
1829	1829	8 paid by the borrower with respect to such loan
1830	1830	9 attributable to the eligible property as calculated
1831	1831	10 under the previous sentence;
1832	1832	11 (N) Two times any contribution made during the
1833	1833	12 taxable year to a designated zone organization to the
1834	1834	13 extent that the contribution (i) qualifies as a
1835	1835	14 charitable contribution under subsection (c) of
1836	1836	15 Section 170 of the Internal Revenue Code and (ii)
1837	1837	16 must, by its terms, be used for a project approved by
1838	1838	17 the Department of Commerce and Economic Opportunity
1839	1839	18 under Section 11 of the Illinois Enterprise Zone Act
1840	1840	19 or under Section 10-10 of the River Edge Redevelopment
1841	1841	20 Zone Act. This subparagraph (N) is exempt from the
1842	1842	21 provisions of Section 250;
1843	1843	22 (O) An amount equal to: (i) 85% for taxable years
1844	1844	23 ending on or before December 31, 1992, or, a
1845	1845	24 percentage equal to the percentage allowable under
1846	1846	25 Section 243(a)(1) of the Internal Revenue Code of 1986
1847	1847	26 for taxable years ending after December 31, 1992, of
1848	1848
1849	1849
1850	1850
1851	1851
1852	1852
1853	1853	SB1467 - 51 - LRB103 28709 LNS 55091 b
1854	1854
1855	1855
1856	1856	SB1467- 52 -LRB103 28709 LNS 55091 b SB1467 - 52 - LRB103 28709 LNS 55091 b
1857	1857	SB1467 - 52 - LRB103 28709 LNS 55091 b
1858	1858	1 the amount by which dividends included in taxable
1859	1859	2 income and received from a corporation that is not
1860	1860	3 created or organized under the laws of the United
1861	1861	4 States or any state or political subdivision thereof,
1862	1862	5 including, for taxable years ending on or after
1863	1863	6 December 31, 1988, dividends received or deemed
1864	1864	7 received or paid or deemed paid under Sections 951
1865	1865	8 through 965 of the Internal Revenue Code, exceed the
1866	1866	9 amount of the modification provided under subparagraph
1867	1867	10 (G) of paragraph (2) of this subsection (b) which is
1868	1868	11 related to such dividends, and including, for taxable
1869	1869	12 years ending on or after December 31, 2008, dividends
1870	1870	13 received from a captive real estate investment trust;
1871	1871	14 plus (ii) 100% of the amount by which dividends,
1872	1872	15 included in taxable income and received, including,
1873	1873	16 for taxable years ending on or after December 31,
1874	1874	17 1988, dividends received or deemed received or paid or
1875	1875	18 deemed paid under Sections 951 through 964 of the
1876	1876	19 Internal Revenue Code and including, for taxable years
1877	1877	20 ending on or after December 31, 2008, dividends
1878	1878	21 received from a captive real estate investment trust,
1879	1879	22 from any such corporation specified in clause (i) that
1880	1880	23 would but for the provisions of Section 1504(b)(3) of
1881	1881	24 the Internal Revenue Code be treated as a member of the
1882	1882	25 affiliated group which includes the dividend
1883	1883	26 recipient, exceed the amount of the modification
1884	1884
1885	1885
1886	1886
1887	1887
1888	1888
1889	1889	SB1467 - 52 - LRB103 28709 LNS 55091 b
1890	1890
1891	1891
1892	1892	SB1467- 53 -LRB103 28709 LNS 55091 b SB1467 - 53 - LRB103 28709 LNS 55091 b
1893	1893	SB1467 - 53 - LRB103 28709 LNS 55091 b
1894	1894	1 provided under subparagraph (G) of paragraph (2) of
1895	1895	2 this subsection (b) which is related to such
1896	1896	3 dividends. For taxable years ending on or after June
1897	1897	4 30, 2021, (i) for purposes of this subparagraph, the
1898	1898	5 term "dividend" does not include any amount treated as
1899	1899	6 a dividend under Section 1248 of the Internal Revenue
1900	1900	7 Code, and (ii) this subparagraph shall not apply to
1901	1901	8 dividends for which a deduction is allowed under
1902	1902	9 Section 245(a) of the Internal Revenue Code. This
1903	1903	10 subparagraph (O) is exempt from the provisions of
1904	1904	11 Section 250 of this Act;
1905	1905	12 (P) An amount equal to any contribution made to a
1906	1906	13 job training project established pursuant to the Tax
1907	1907	14 Increment Allocation Redevelopment Act;
1908	1908	15 (Q) An amount equal to the amount of the deduction
1909	1909	16 used to compute the federal income tax credit for
1910	1910	17 restoration of substantial amounts held under claim of
1911	1911	18 right for the taxable year pursuant to Section 1341 of
1912	1912	19 the Internal Revenue Code;
1913	1913	20 (R) On and after July 20, 1999, in the case of an
1914	1914	21 attorney-in-fact with respect to whom an interinsurer
1915	1915	22 or a reciprocal insurer has made the election under
1916	1916	23 Section 835 of the Internal Revenue Code, 26 U.S.C.
1917	1917	24 835, an amount equal to the excess, if any, of the
1918	1918	25 amounts paid or incurred by that interinsurer or
1919	1919	26 reciprocal insurer in the taxable year to the
1920	1920
1921	1921
1922	1922
1923	1923
1924	1924
1925	1925	SB1467 - 53 - LRB103 28709 LNS 55091 b
1926	1926
1927	1927
1928	1928	SB1467- 54 -LRB103 28709 LNS 55091 b SB1467 - 54 - LRB103 28709 LNS 55091 b
1929	1929	SB1467 - 54 - LRB103 28709 LNS 55091 b
1930	1930	1 attorney-in-fact over the deduction allowed to that
1931	1931	2 interinsurer or reciprocal insurer with respect to the
1932	1932	3 attorney-in-fact under Section 835(b) of the Internal
1933	1933	4 Revenue Code for the taxable year; the provisions of
1934	1934	5 this subparagraph are exempt from the provisions of
1935	1935	6 Section 250;
1936	1936	7 (S) For taxable years ending on or after December
1937	1937	8 31, 1997, in the case of a Subchapter S corporation, an
1938	1938	9 amount equal to all amounts of income allocable to a
1939	1939	10 shareholder subject to the Personal Property Tax
1940	1940	11 Replacement Income Tax imposed by subsections (c) and
1941	1941	12 (d) of Section 201 of this Act, including amounts
1942	1942	13 allocable to organizations exempt from federal income
1943	1943	14 tax by reason of Section 501(a) of the Internal
1944	1944	15 Revenue Code. This subparagraph (S) is exempt from the
1945	1945	16 provisions of Section 250;
1946	1946	17 (T) For taxable years 2001 and thereafter, for the
1947	1947	18 taxable year in which the bonus depreciation deduction
1948	1948	19 is taken on the taxpayer's federal income tax return
1949	1949	20 under subsection (k) of Section 168 of the Internal
1950	1950	21 Revenue Code and for each applicable taxable year
1951	1951	22 thereafter, an amount equal to "x", where:
1952	1952	23 (1) "y" equals the amount of the depreciation
1953	1953	24 deduction taken for the taxable year on the
1954	1954	25 taxpayer's federal income tax return on property
1955	1955	26 for which the bonus depreciation deduction was
1956	1956
1957	1957
1958	1958
1959	1959
1960	1960
1961	1961	SB1467 - 54 - LRB103 28709 LNS 55091 b
1962	1962
1963	1963
1964	1964	SB1467- 55 -LRB103 28709 LNS 55091 b SB1467 - 55 - LRB103 28709 LNS 55091 b
1965	1965	SB1467 - 55 - LRB103 28709 LNS 55091 b
1966	1966	1 taken in any year under subsection (k) of Section
1967	1967	2 168 of the Internal Revenue Code, but not
1968	1968	3 including the bonus depreciation deduction;
1969	1969	4 (2) for taxable years ending on or before
1970	1970	5 December 31, 2005, "x" equals "y" multiplied by 30
1971	1971	6 and then divided by 70 (or "y" multiplied by
1972	1972	7 0.429); and
1973	1973	8 (3) for taxable years ending after December
1974	1974	9 31, 2005:
1975	1975	10 (i) for property on which a bonus
1976	1976	11 depreciation deduction of 30% of the adjusted
1977	1977	12 basis was taken, "x" equals "y" multiplied by
1978	1978	13 30 and then divided by 70 (or "y" multiplied
1979	1979	14 by 0.429);
1980	1980	15 (ii) for property on which a bonus
1981	1981	16 depreciation deduction of 50% of the adjusted
1982	1982	17 basis was taken, "x" equals "y" multiplied by
1983	1983	18 1.0;
1984	1984	19 (iii) for property on which a bonus
1985	1985	20 depreciation deduction of 100% of the adjusted
1986	1986	21 basis was taken in a taxable year ending on or
1987	1987	22 after December 31, 2021, "x" equals the
1988	1988	23 depreciation deduction that would be allowed
1989	1989	24 on that property if the taxpayer had made the
1990	1990	25 election under Section 168(k)(7) of the
1991	1991	26 Internal Revenue Code to not claim bonus
1992	1992
1993	1993
1994	1994
1995	1995
1996	1996
1997	1997	SB1467 - 55 - LRB103 28709 LNS 55091 b
1998	1998
1999	1999
2000	2000	SB1467- 56 -LRB103 28709 LNS 55091 b SB1467 - 56 - LRB103 28709 LNS 55091 b
2001	2001	SB1467 - 56 - LRB103 28709 LNS 55091 b
2002	2002	1 depreciation on that property; and
2003	2003	2 (iv) for property on which a bonus
2004	2004	3 depreciation deduction of a percentage other
2005	2005	4 than 30%, 50% or 100% of the adjusted basis
2006	2006	5 was taken in a taxable year ending on or after
2007	2007	6 December 31, 2021, "x" equals "y" multiplied
2008	2008	7 by 100 times the percentage bonus depreciation
2009	2009	8 on the property (that is, 100(bonus%)) and
2010	2010	9 then divided by 100 times 1 minus the
2011	2011	10 percentage bonus depreciation on the property
2012	2012	11 (that is, 100(1bonus%)).
2013	2013	12 The aggregate amount deducted under this
2014	2014	13 subparagraph in all taxable years for any one piece of
2015	2015	14 property may not exceed the amount of the bonus
2016	2016	15 depreciation deduction taken on that property on the
2017	2017	16 taxpayer's federal income tax return under subsection
2018	2018	17 (k) of Section 168 of the Internal Revenue Code. This
2019	2019	18 subparagraph (T) is exempt from the provisions of
2020	2020	19 Section 250;
2021	2021	20 (U) If the taxpayer sells, transfers, abandons, or
2022	2022	21 otherwise disposes of property for which the taxpayer
2023	2023	22 was required in any taxable year to make an addition
2024	2024	23 modification under subparagraph (E-10), then an amount
2025	2025	24 equal to that addition modification.
2026	2026	25 If the taxpayer continues to own property through
2027	2027	26 the last day of the last tax year for which a
2028	2028
2029	2029
2030	2030
2031	2031
2032	2032
2033	2033	SB1467 - 56 - LRB103 28709 LNS 55091 b
2034	2034
2035	2035
2036	2036	SB1467- 57 -LRB103 28709 LNS 55091 b SB1467 - 57 - LRB103 28709 LNS 55091 b
2037	2037	SB1467 - 57 - LRB103 28709 LNS 55091 b
2038	2038	1 subtraction is allowed with respect to that property
2039	2039	2 under subparagraph (T) and for which the taxpayer was
2040	2040	3 required in any taxable year to make an addition
2041	2041	4 modification under subparagraph (E-10), then an amount
2042	2042	5 equal to that addition modification.
2043	2043	6 The taxpayer is allowed to take the deduction
2044	2044	7 under this subparagraph only once with respect to any
2045	2045	8 one piece of property.
2046	2046	9 This subparagraph (U) is exempt from the
2047	2047	10 provisions of Section 250;
2048	2048	11 (V) The amount of: (i) any interest income (net of
2049	2049	12 the deductions allocable thereto) taken into account
2050	2050	13 for the taxable year with respect to a transaction
2051	2051	14 with a taxpayer that is required to make an addition
2052	2052	15 modification with respect to such transaction under
2053	2053	16 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2054	2054	17 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2055	2055	18 the amount of such addition modification, (ii) any
2056	2056	19 income from intangible property (net of the deductions
2057	2057	20 allocable thereto) taken into account for the taxable
2058	2058	21 year with respect to a transaction with a taxpayer
2059	2059	22 that is required to make an addition modification with
2060	2060	23 respect to such transaction under Section
2061	2061	24 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2062	2062	25 203(d)(2)(D-8), but not to exceed the amount of such
2063	2063	26 addition modification, and (iii) any insurance premium
2064	2064
2065	2065
2066	2066
2067	2067
2068	2068
2069	2069	SB1467 - 57 - LRB103 28709 LNS 55091 b
2070	2070
2071	2071
2072	2072	SB1467- 58 -LRB103 28709 LNS 55091 b SB1467 - 58 - LRB103 28709 LNS 55091 b
2073	2073	SB1467 - 58 - LRB103 28709 LNS 55091 b
2074	2074	1 income (net of deductions allocable thereto) taken
2075	2075	2 into account for the taxable year with respect to a
2076	2076	3 transaction with a taxpayer that is required to make
2077	2077	4 an addition modification with respect to such
2078	2078	5 transaction under Section 203(a)(2)(D-19), Section
2079	2079	6 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
2080	2080	7 203(d)(2)(D-9), but not to exceed the amount of that
2081	2081	8 addition modification. This subparagraph (V) is exempt
2082	2082	9 from the provisions of Section 250;
2083	2083	10 (W) An amount equal to the interest income taken
2084	2084	11 into account for the taxable year (net of the
2085	2085	12 deductions allocable thereto) with respect to
2086	2086	13 transactions with (i) a foreign person who would be a
2087	2087	14 member of the taxpayer's unitary business group but
2088	2088	15 for the fact that the foreign person's business
2089	2089	16 activity outside the United States is 80% or more of
2090	2090	17 that person's total business activity and (ii) for
2091	2091	18 taxable years ending on or after December 31, 2008, to
2092	2092	19 a person who would be a member of the same unitary
2093	2093	20 business group but for the fact that the person is
2094	2094	21 prohibited under Section 1501(a)(27) from being
2095	2095	22 included in the unitary business group because he or
2096	2096	23 she is ordinarily required to apportion business
2097	2097	24 income under different subsections of Section 304, but
2098	2098	25 not to exceed the addition modification required to be
2099	2099	26 made for the same taxable year under Section
2100	2100
2101	2101
2102	2102
2103	2103
2104	2104
2105	2105	SB1467 - 58 - LRB103 28709 LNS 55091 b
2106	2106
2107	2107
2108	2108	SB1467- 59 -LRB103 28709 LNS 55091 b SB1467 - 59 - LRB103 28709 LNS 55091 b
2109	2109	SB1467 - 59 - LRB103 28709 LNS 55091 b
2110	2110	1 203(b)(2)(E-12) for interest paid, accrued, or
2111	2111	2 incurred, directly or indirectly, to the same person.
2112	2112	3 This subparagraph (W) is exempt from the provisions of
2113	2113	4 Section 250;
2114	2114	5 (X) An amount equal to the income from intangible
2115	2115	6 property taken into account for the taxable year (net
2116	2116	7 of the deductions allocable thereto) with respect to
2117	2117	8 transactions with (i) a foreign person who would be a
2118	2118	9 member of the taxpayer's unitary business group but
2119	2119	10 for the fact that the foreign person's business
2120	2120	11 activity outside the United States is 80% or more of
2121	2121	12 that person's total business activity and (ii) for
2122	2122	13 taxable years ending on or after December 31, 2008, to
2123	2123	14 a person who would be a member of the same unitary
2124	2124	15 business group but for the fact that the person is
2125	2125	16 prohibited under Section 1501(a)(27) from being
2126	2126	17 included in the unitary business group because he or
2127	2127	18 she is ordinarily required to apportion business
2128	2128	19 income under different subsections of Section 304, but
2129	2129	20 not to exceed the addition modification required to be
2130	2130	21 made for the same taxable year under Section
2131	2131	22 203(b)(2)(E-13) for intangible expenses and costs
2132	2132	23 paid, accrued, or incurred, directly or indirectly, to
2133	2133	24 the same foreign person. This subparagraph (X) is
2134	2134	25 exempt from the provisions of Section 250;
2135	2135	26 (Y) For taxable years ending on or after December
2136	2136
2137	2137
2138	2138
2139	2139
2140	2140
2141	2141	SB1467 - 59 - LRB103 28709 LNS 55091 b
2142	2142
2143	2143
2144	2144	SB1467- 60 -LRB103 28709 LNS 55091 b SB1467 - 60 - LRB103 28709 LNS 55091 b
2145	2145	SB1467 - 60 - LRB103 28709 LNS 55091 b
2146	2146	1 31, 2011, in the case of a taxpayer who was required to
2147	2147	2 add back any insurance premiums under Section
2148	2148	3 203(b)(2)(E-14), such taxpayer may elect to subtract
2149	2149	4 that part of a reimbursement received from the
2150	2150	5 insurance company equal to the amount of the expense
2151	2151	6 or loss (including expenses incurred by the insurance
2152	2152	7 company) that would have been taken into account as a
2153	2153	8 deduction for federal income tax purposes if the
2154	2154	9 expense or loss had been uninsured. If a taxpayer
2155	2155	10 makes the election provided for by this subparagraph
2156	2156	11 (Y), the insurer to which the premiums were paid must
2157	2157	12 add back to income the amount subtracted by the
2158	2158	13 taxpayer pursuant to this subparagraph (Y). This
2159	2159	14 subparagraph (Y) is exempt from the provisions of
2160	2160	15 Section 250; and
2161	2161	16 (Z) The difference between the nondeductible
2162	2162	17 controlled foreign corporation dividends under Section
2163	2163	18 965(e)(3) of the Internal Revenue Code over the
2164	2164	19 taxable income of the taxpayer, computed without
2165	2165	20 regard to Section 965(e)(2)(A) of the Internal Revenue
2166	2166	21 Code, and without regard to any net operating loss
2167	2167	22 deduction. This subparagraph (Z) is exempt from the
2168	2168	23 provisions of Section 250.
2169	2169	24 (3) Special rule. For purposes of paragraph (2)(A),
2170	2170	25 "gross income" in the case of a life insurance company,
2171	2171	26 for tax years ending on and after December 31, 1994, and
2172	2172
2173	2173
2174	2174
2175	2175
2176	2176
2177	2177	SB1467 - 60 - LRB103 28709 LNS 55091 b
2178	2178
2179	2179
2180	2180	SB1467- 61 -LRB103 28709 LNS 55091 b SB1467 - 61 - LRB103 28709 LNS 55091 b
2181	2181	SB1467 - 61 - LRB103 28709 LNS 55091 b
2182	2182	1 prior to December 31, 2011, shall mean the gross
2183	2183	2 investment income for the taxable year and, for tax years
2184	2184	3 ending on or after December 31, 2011, shall mean all
2185	2185	4 amounts included in life insurance gross income under
2186	2186	5 Section 803(a)(3) of the Internal Revenue Code.
2187	2187	6 (c) Trusts and estates.
2188	2188	7 (1) In general. In the case of a trust or estate, base
2189	2189	8 income means an amount equal to the taxpayer's taxable
2190	2190	9 income for the taxable year as modified by paragraph (2).
2191	2191	10 (2) Modifications. Subject to the provisions of
2192	2192	11 paragraph (3), the taxable income referred to in paragraph
2193	2193	12 (1) shall be modified by adding thereto the sum of the
2194	2194	13 following amounts:
2195	2195	14 (A) An amount equal to all amounts paid or accrued
2196	2196	15 to the taxpayer as interest or dividends during the
2197	2197	16 taxable year to the extent excluded from gross income
2198	2198	17 in the computation of taxable income;
2199	2199	18 (B) In the case of (i) an estate, $600; (ii) a
2200	2200	19 trust which, under its governing instrument, is
2201	2201	20 required to distribute all of its income currently,
2202	2202	21 $300; and (iii) any other trust, $100, but in each such
2203	2203	22 case, only to the extent such amount was deducted in
2204	2204	23 the computation of taxable income;
2205	2205	24 (C) An amount equal to the amount of tax imposed by
2206	2206	25 this Act to the extent deducted from gross income in
2207	2207
2208	2208
2209	2209
2210	2210
2211	2211
2212	2212	SB1467 - 61 - LRB103 28709 LNS 55091 b
2213	2213
2214	2214
2215	2215	SB1467- 62 -LRB103 28709 LNS 55091 b SB1467 - 62 - LRB103 28709 LNS 55091 b
2216	2216	SB1467 - 62 - LRB103 28709 LNS 55091 b
2217	2217	1 the computation of taxable income for the taxable
2218	2218	2 year;
2219	2219	3 (D) The amount of any net operating loss deduction
2220	2220	4 taken in arriving at taxable income, other than a net
2221	2221	5 operating loss carried forward from a taxable year
2222	2222	6 ending prior to December 31, 1986;
2223	2223	7 (E) For taxable years in which a net operating
2224	2224	8 loss carryback or carryforward from a taxable year
2225	2225	9 ending prior to December 31, 1986 is an element of
2226	2226	10 taxable income under paragraph (1) of subsection (e)
2227	2227	11 or subparagraph (E) of paragraph (2) of subsection
2228	2228	12 (e), the amount by which addition modifications other
2229	2229	13 than those provided by this subparagraph (E) exceeded
2230	2230	14 subtraction modifications in such taxable year, with
2231	2231	15 the following limitations applied in the order that
2232	2232	16 they are listed:
2233	2233	17 (i) the addition modification relating to the
2234	2234	18 net operating loss carried back or forward to the
2235	2235	19 taxable year from any taxable year ending prior to
2236	2236	20 December 31, 1986 shall be reduced by the amount
2237	2237	21 of addition modification under this subparagraph
2238	2238	22 (E) which related to that net operating loss and
2239	2239	23 which was taken into account in calculating the
2240	2240	24 base income of an earlier taxable year, and
2241	2241	25 (ii) the addition modification relating to the
2242	2242	26 net operating loss carried back or forward to the
2243	2243
2244	2244
2245	2245
2246	2246
2247	2247
2248	2248	SB1467 - 62 - LRB103 28709 LNS 55091 b
2249	2249
2250	2250
2251	2251	SB1467- 63 -LRB103 28709 LNS 55091 b SB1467 - 63 - LRB103 28709 LNS 55091 b
2252	2252	SB1467 - 63 - LRB103 28709 LNS 55091 b
2253	2253	1 taxable year from any taxable year ending prior to
2254	2254	2 December 31, 1986 shall not exceed the amount of
2255	2255	3 such carryback or carryforward;
2256	2256	4 For taxable years in which there is a net
2257	2257	5 operating loss carryback or carryforward from more
2258	2258	6 than one other taxable year ending prior to December
2259	2259	7 31, 1986, the addition modification provided in this
2260	2260	8 subparagraph (E) shall be the sum of the amounts
2261	2261	9 computed independently under the preceding provisions
2262	2262	10 of this subparagraph (E) for each such taxable year;
2263	2263	11 (F) For taxable years ending on or after January
2264	2264	12 1, 1989, an amount equal to the tax deducted pursuant
2265	2265	13 to Section 164 of the Internal Revenue Code if the
2266	2266	14 trust or estate is claiming the same tax for purposes
2267	2267	15 of the Illinois foreign tax credit under Section 601
2268	2268	16 of this Act;
2269	2269	17 (G) An amount equal to the amount of the capital
2270	2270	18 gain deduction allowable under the Internal Revenue
2271	2271	19 Code, to the extent deducted from gross income in the
2272	2272	20 computation of taxable income;
2273	2273	21 (G-5) For taxable years ending after December 31,
2274	2274	22 1997, an amount equal to any eligible remediation
2275	2275	23 costs that the trust or estate deducted in computing
2276	2276	24 adjusted gross income and for which the trust or
2277	2277	25 estate claims a credit under subsection (l) of Section
2278	2278	26 201;
2279	2279
2280	2280
2281	2281
2282	2282
2283	2283
2284	2284	SB1467 - 63 - LRB103 28709 LNS 55091 b
2285	2285
2286	2286
2287	2287	SB1467- 64 -LRB103 28709 LNS 55091 b SB1467 - 64 - LRB103 28709 LNS 55091 b
2288	2288	SB1467 - 64 - LRB103 28709 LNS 55091 b
2289	2289	1 (G-10) For taxable years 2001 and thereafter, an
2290	2290	2 amount equal to the bonus depreciation deduction taken
2291	2291	3 on the taxpayer's federal income tax return for the
2292	2292	4 taxable year under subsection (k) of Section 168 of
2293	2293	5 the Internal Revenue Code; and
2294	2294	6 (G-11) If the taxpayer sells, transfers, abandons,
2295	2295	7 or otherwise disposes of property for which the
2296	2296	8 taxpayer was required in any taxable year to make an
2297	2297	9 addition modification under subparagraph (G-10), then
2298	2298	10 an amount equal to the aggregate amount of the
2299	2299	11 deductions taken in all taxable years under
2300	2300	12 subparagraph (R) with respect to that property.
2301	2301	13 If the taxpayer continues to own property through
2302	2302	14 the last day of the last tax year for which a
2303	2303	15 subtraction is allowed with respect to that property
2304	2304	16 under subparagraph (R) and for which the taxpayer was
2305	2305	17 allowed in any taxable year to make a subtraction
2306	2306	18 modification under subparagraph (R), then an amount
2307	2307	19 equal to that subtraction modification.
2308	2308	20 The taxpayer is required to make the addition
2309	2309	21 modification under this subparagraph only once with
2310	2310	22 respect to any one piece of property;
2311	2311	23 (G-12) An amount equal to the amount otherwise
2312	2312	24 allowed as a deduction in computing base income for
2313	2313	25 interest paid, accrued, or incurred, directly or
2314	2314	26 indirectly, (i) for taxable years ending on or after
2315	2315
2316	2316
2317	2317
2318	2318
2319	2319
2320	2320	SB1467 - 64 - LRB103 28709 LNS 55091 b
2321	2321
2322	2322
2323	2323	SB1467- 65 -LRB103 28709 LNS 55091 b SB1467 - 65 - LRB103 28709 LNS 55091 b
2324	2324	SB1467 - 65 - LRB103 28709 LNS 55091 b
2325	2325	1 December 31, 2004, to a foreign person who would be a
2326	2326	2 member of the same unitary business group but for the
2327	2327	3 fact that the foreign person's business activity
2328	2328	4 outside the United States is 80% or more of the foreign
2329	2329	5 person's total business activity and (ii) for taxable
2330	2330	6 years ending on or after December 31, 2008, to a person
2331	2331	7 who would be a member of the same unitary business
2332	2332	8 group but for the fact that the person is prohibited
2333	2333	9 under Section 1501(a)(27) from being included in the
2334	2334	10 unitary business group because he or she is ordinarily
2335	2335	11 required to apportion business income under different
2336	2336	12 subsections of Section 304. The addition modification
2337	2337	13 required by this subparagraph shall be reduced to the
2338	2338	14 extent that dividends were included in base income of
2339	2339	15 the unitary group for the same taxable year and
2340	2340	16 received by the taxpayer or by a member of the
2341	2341	17 taxpayer's unitary business group (including amounts
2342	2342	18 included in gross income pursuant to Sections 951
2343	2343	19 through 964 of the Internal Revenue Code and amounts
2344	2344	20 included in gross income under Section 78 of the
2345	2345	21 Internal Revenue Code) with respect to the stock of
2346	2346	22 the same person to whom the interest was paid,
2347	2347	23 accrued, or incurred.
2348	2348	24 This paragraph shall not apply to the following:
2349	2349	25 (i) an item of interest paid, accrued, or
2350	2350	26 incurred, directly or indirectly, to a person who
2351	2351
2352	2352
2353	2353
2354	2354
2355	2355
2356	2356	SB1467 - 65 - LRB103 28709 LNS 55091 b
2357	2357
2358	2358
2359	2359	SB1467- 66 -LRB103 28709 LNS 55091 b SB1467 - 66 - LRB103 28709 LNS 55091 b
2360	2360	SB1467 - 66 - LRB103 28709 LNS 55091 b
2361	2361	1 is subject in a foreign country or state, other
2362	2362	2 than a state which requires mandatory unitary
2363	2363	3 reporting, to a tax on or measured by net income
2364	2364	4 with respect to such interest; or
2365	2365	5 (ii) an item of interest paid, accrued, or
2366	2366	6 incurred, directly or indirectly, to a person if
2367	2367	7 the taxpayer can establish, based on a
2368	2368	8 preponderance of the evidence, both of the
2369	2369	9 following:
2370	2370	10 (a) the person, during the same taxable
2371	2371	11 year, paid, accrued, or incurred, the interest
2372	2372	12 to a person that is not a related member, and
2373	2373	13 (b) the transaction giving rise to the
2374	2374	14 interest expense between the taxpayer and the
2375	2375	15 person did not have as a principal purpose the
2376	2376	16 avoidance of Illinois income tax, and is paid
2377	2377	17 pursuant to a contract or agreement that
2378	2378	18 reflects an arm's-length interest rate and
2379	2379	19 terms; or
2380	2380	20 (iii) the taxpayer can establish, based on
2381	2381	21 clear and convincing evidence, that the interest
2382	2382	22 paid, accrued, or incurred relates to a contract
2383	2383	23 or agreement entered into at arm's-length rates
2384	2384	24 and terms and the principal purpose for the
2385	2385	25 payment is not federal or Illinois tax avoidance;
2386	2386	26 or
2387	2387
2388	2388
2389	2389
2390	2390
2391	2391
2392	2392	SB1467 - 66 - LRB103 28709 LNS 55091 b
2393	2393
2394	2394
2395	2395	SB1467- 67 -LRB103 28709 LNS 55091 b SB1467 - 67 - LRB103 28709 LNS 55091 b
2396	2396	SB1467 - 67 - LRB103 28709 LNS 55091 b
2397	2397	1 (iv) an item of interest paid, accrued, or
2398	2398	2 incurred, directly or indirectly, to a person if
2399	2399	3 the taxpayer establishes by clear and convincing
2400	2400	4 evidence that the adjustments are unreasonable; or
2401	2401	5 if the taxpayer and the Director agree in writing
2402	2402	6 to the application or use of an alternative method
2403	2403	7 of apportionment under Section 304(f).
2404	2404	8 Nothing in this subsection shall preclude the
2405	2405	9 Director from making any other adjustment
2406	2406	10 otherwise allowed under Section 404 of this Act
2407	2407	11 for any tax year beginning after the effective
2408	2408	12 date of this amendment provided such adjustment is
2409	2409	13 made pursuant to regulation adopted by the
2410	2410	14 Department and such regulations provide methods
2411	2411	15 and standards by which the Department will utilize
2412	2412	16 its authority under Section 404 of this Act;
2413	2413	17 (G-13) An amount equal to the amount of intangible
2414	2414	18 expenses and costs otherwise allowed as a deduction in
2415	2415	19 computing base income, and that were paid, accrued, or
2416	2416	20 incurred, directly or indirectly, (i) for taxable
2417	2417	21 years ending on or after December 31, 2004, to a
2418	2418	22 foreign person who would be a member of the same
2419	2419	23 unitary business group but for the fact that the
2420	2420	24 foreign person's business activity outside the United
2421	2421	25 States is 80% or more of that person's total business
2422	2422	26 activity and (ii) for taxable years ending on or after
2423	2423
2424	2424
2425	2425
2426	2426
2427	2427
2428	2428	SB1467 - 67 - LRB103 28709 LNS 55091 b
2429	2429
2430	2430
2431	2431	SB1467- 68 -LRB103 28709 LNS 55091 b SB1467 - 68 - LRB103 28709 LNS 55091 b
2432	2432	SB1467 - 68 - LRB103 28709 LNS 55091 b
2433	2433	1 December 31, 2008, to a person who would be a member of
2434	2434	2 the same unitary business group but for the fact that
2435	2435	3 the person is prohibited under Section 1501(a)(27)
2436	2436	4 from being included in the unitary business group
2437	2437	5 because he or she is ordinarily required to apportion
2438	2438	6 business income under different subsections of Section
2439	2439	7 304. The addition modification required by this
2440	2440	8 subparagraph shall be reduced to the extent that
2441	2441	9 dividends were included in base income of the unitary
2442	2442	10 group for the same taxable year and received by the
2443	2443	11 taxpayer or by a member of the taxpayer's unitary
2444	2444	12 business group (including amounts included in gross
2445	2445	13 income pursuant to Sections 951 through 964 of the
2446	2446	14 Internal Revenue Code and amounts included in gross
2447	2447	15 income under Section 78 of the Internal Revenue Code)
2448	2448	16 with respect to the stock of the same person to whom
2449	2449	17 the intangible expenses and costs were directly or
2450	2450	18 indirectly paid, incurred, or accrued. The preceding
2451	2451	19 sentence shall not apply to the extent that the same
2452	2452	20 dividends caused a reduction to the addition
2453	2453	21 modification required under Section 203(c)(2)(G-12) of
2454	2454	22 this Act. As used in this subparagraph, the term
2455	2455	23 "intangible expenses and costs" includes: (1)
2456	2456	24 expenses, losses, and costs for or related to the
2457	2457	25 direct or indirect acquisition, use, maintenance or
2458	2458	26 management, ownership, sale, exchange, or any other
2459	2459
2460	2460
2461	2461
2462	2462
2463	2463
2464	2464	SB1467 - 68 - LRB103 28709 LNS 55091 b
2465	2465
2466	2466
2467	2467	SB1467- 69 -LRB103 28709 LNS 55091 b SB1467 - 69 - LRB103 28709 LNS 55091 b
2468	2468	SB1467 - 69 - LRB103 28709 LNS 55091 b
2469	2469	1 disposition of intangible property; (2) losses
2470	2470	2 incurred, directly or indirectly, from factoring
2471	2471	3 transactions or discounting transactions; (3) royalty,
2472	2472	4 patent, technical, and copyright fees; (4) licensing
2473	2473	5 fees; and (5) other similar expenses and costs. For
2474	2474	6 purposes of this subparagraph, "intangible property"
2475	2475	7 includes patents, patent applications, trade names,
2476	2476	8 trademarks, service marks, copyrights, mask works,
2477	2477	9 trade secrets, and similar types of intangible assets.
2478	2478	10 This paragraph shall not apply to the following:
2479	2479	11 (i) any item of intangible expenses or costs
2480	2480	12 paid, accrued, or incurred, directly or
2481	2481	13 indirectly, from a transaction with a person who
2482	2482	14 is subject in a foreign country or state, other
2483	2483	15 than a state which requires mandatory unitary
2484	2484	16 reporting, to a tax on or measured by net income
2485	2485	17 with respect to such item; or
2486	2486	18 (ii) any item of intangible expense or cost
2487	2487	19 paid, accrued, or incurred, directly or
2488	2488	20 indirectly, if the taxpayer can establish, based
2489	2489	21 on a preponderance of the evidence, both of the
2490	2490	22 following:
2491	2491	23 (a) the person during the same taxable
2492	2492	24 year paid, accrued, or incurred, the
2493	2493	25 intangible expense or cost to a person that is
2494	2494	26 not a related member, and
2495	2495
2496	2496
2497	2497
2498	2498
2499	2499
2500	2500	SB1467 - 69 - LRB103 28709 LNS 55091 b
2501	2501
2502	2502
2503	2503	SB1467- 70 -LRB103 28709 LNS 55091 b SB1467 - 70 - LRB103 28709 LNS 55091 b
2504	2504	SB1467 - 70 - LRB103 28709 LNS 55091 b
2505	2505	1 (b) the transaction giving rise to the
2506	2506	2 intangible expense or cost between the
2507	2507	3 taxpayer and the person did not have as a
2508	2508	4 principal purpose the avoidance of Illinois
2509	2509	5 income tax, and is paid pursuant to a contract
2510	2510	6 or agreement that reflects arm's-length terms;
2511	2511	7 or
2512	2512	8 (iii) any item of intangible expense or cost
2513	2513	9 paid, accrued, or incurred, directly or
2514	2514	10 indirectly, from a transaction with a person if
2515	2515	11 the taxpayer establishes by clear and convincing
2516	2516	12 evidence, that the adjustments are unreasonable;
2517	2517	13 or if the taxpayer and the Director agree in
2518	2518	14 writing to the application or use of an
2519	2519	15 alternative method of apportionment under Section
2520	2520	16 304(f);
2521	2521	17 Nothing in this subsection shall preclude the
2522	2522	18 Director from making any other adjustment
2523	2523	19 otherwise allowed under Section 404 of this Act
2524	2524	20 for any tax year beginning after the effective
2525	2525	21 date of this amendment provided such adjustment is
2526	2526	22 made pursuant to regulation adopted by the
2527	2527	23 Department and such regulations provide methods
2528	2528	24 and standards by which the Department will utilize
2529	2529	25 its authority under Section 404 of this Act;
2530	2530	26 (G-14) For taxable years ending on or after
2531	2531
2532	2532
2533	2533
2534	2534
2535	2535
2536	2536	SB1467 - 70 - LRB103 28709 LNS 55091 b
2537	2537
2538	2538
2539	2539	SB1467- 71 -LRB103 28709 LNS 55091 b SB1467 - 71 - LRB103 28709 LNS 55091 b
2540	2540	SB1467 - 71 - LRB103 28709 LNS 55091 b
2541	2541	1 December 31, 2008, an amount equal to the amount of
2542	2542	2 insurance premium expenses and costs otherwise allowed
2543	2543	3 as a deduction in computing base income, and that were
2544	2544	4 paid, accrued, or incurred, directly or indirectly, to
2545	2545	5 a person who would be a member of the same unitary
2546	2546	6 business group but for the fact that the person is
2547	2547	7 prohibited under Section 1501(a)(27) from being
2548	2548	8 included in the unitary business group because he or
2549	2549	9 she is ordinarily required to apportion business
2550	2550	10 income under different subsections of Section 304. The
2551	2551	11 addition modification required by this subparagraph
2552	2552	12 shall be reduced to the extent that dividends were
2553	2553	13 included in base income of the unitary group for the
2554	2554	14 same taxable year and received by the taxpayer or by a
2555	2555	15 member of the taxpayer's unitary business group
2556	2556	16 (including amounts included in gross income under
2557	2557	17 Sections 951 through 964 of the Internal Revenue Code
2558	2558	18 and amounts included in gross income under Section 78
2559	2559	19 of the Internal Revenue Code) with respect to the
2560	2560	20 stock of the same person to whom the premiums and costs
2561	2561	21 were directly or indirectly paid, incurred, or
2562	2562	22 accrued. The preceding sentence does not apply to the
2563	2563	23 extent that the same dividends caused a reduction to
2564	2564	24 the addition modification required under Section
2565	2565	25 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2566	2566	26 Act;
2567	2567
2568	2568
2569	2569
2570	2570
2571	2571
2572	2572	SB1467 - 71 - LRB103 28709 LNS 55091 b
2573	2573
2574	2574
2575	2575	SB1467- 72 -LRB103 28709 LNS 55091 b SB1467 - 72 - LRB103 28709 LNS 55091 b
2576	2576	SB1467 - 72 - LRB103 28709 LNS 55091 b
2577	2577	1 (G-15) An amount equal to the credit allowable to
2578	2578	2 the taxpayer under Section 218(a) of this Act,
2579	2579	3 determined without regard to Section 218(c) of this
2580	2580	4 Act;
2581	2581	5 (G-16) For taxable years ending on or after
2582	2582	6 December 31, 2017, an amount equal to the deduction
2583	2583	7 allowed under Section 199 of the Internal Revenue Code
2584	2584	8 for the taxable year;
2585	2585	9 and by deducting from the total so obtained the sum of the
2586	2586	10 following amounts:
2587	2587	11 (H) An amount equal to all amounts included in
2588	2588	12 such total pursuant to the provisions of Sections
2589	2589	13 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2590	2590	14 of the Internal Revenue Code or included in such total
2591	2591	15 as distributions under the provisions of any
2592	2592	16 retirement or disability plan for employees of any
2593	2593	17 governmental agency or unit, or retirement payments to
2594	2594	18 retired partners, which payments are excluded in
2595	2595	19 computing net earnings from self employment by Section
2596	2596	20 1402 of the Internal Revenue Code and regulations
2597	2597	21 adopted pursuant thereto;
2598	2598	22 (I) The valuation limitation amount;
2599	2599	23 (J) An amount equal to the amount of any tax
2600	2600	24 imposed by this Act which was refunded to the taxpayer
2601	2601	25 and included in such total for the taxable year;
2602	2602	26 (K) An amount equal to all amounts included in
2603	2603
2604	2604
2605	2605
2606	2606
2607	2607
2608	2608	SB1467 - 72 - LRB103 28709 LNS 55091 b
2609	2609
2610	2610
2611	2611	SB1467- 73 -LRB103 28709 LNS 55091 b SB1467 - 73 - LRB103 28709 LNS 55091 b
2612	2612	SB1467 - 73 - LRB103 28709 LNS 55091 b
2613	2613	1 taxable income as modified by subparagraphs (A), (B),
2614	2614	2 (C), (D), (E), (F) and (G) which are exempt from
2615	2615	3 taxation by this State either by reason of its
2616	2616	4 statutes or Constitution or by reason of the
2617	2617	5 Constitution, treaties or statutes of the United
2618	2618	6 States; provided that, in the case of any statute of
2619	2619	7 this State that exempts income derived from bonds or
2620	2620	8 other obligations from the tax imposed under this Act,
2621	2621	9 the amount exempted shall be the interest net of bond
2622	2622	10 premium amortization;
2623	2623	11 (L) With the exception of any amounts subtracted
2624	2624	12 under subparagraph (K), an amount equal to the sum of
2625	2625	13 all amounts disallowed as deductions by (i) Sections
2626	2626	14 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2627	2627	15 and all amounts of expenses allocable to interest and
2628	2628	16 disallowed as deductions by Section 265(a)(1) of the
2629	2629	17 Internal Revenue Code; and (ii) for taxable years
2630	2630	18 ending on or after August 13, 1999, Sections
2631	2631	19 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2632	2632	20 Internal Revenue Code, plus, (iii) for taxable years
2633	2633	21 ending on or after December 31, 2011, Section
2634	2634	22 45G(e)(3) of the Internal Revenue Code and, for
2635	2635	23 taxable years ending on or after December 31, 2008,
2636	2636	24 any amount included in gross income under Section 87
2637	2637	25 of the Internal Revenue Code; the provisions of this
2638	2638	26 subparagraph are exempt from the provisions of Section
2639	2639
2640	2640
2641	2641
2642	2642
2643	2643
2644	2644	SB1467 - 73 - LRB103 28709 LNS 55091 b
2645	2645
2646	2646
2647	2647	SB1467- 74 -LRB103 28709 LNS 55091 b SB1467 - 74 - LRB103 28709 LNS 55091 b
2648	2648	SB1467 - 74 - LRB103 28709 LNS 55091 b
2649	2649	1 250;
2650	2650	2 (M) An amount equal to those dividends included in
2651	2651	3 such total which were paid by a corporation which
2652	2652	4 conducts business operations in a River Edge
2653	2653	5 Redevelopment Zone or zones created under the River
2654	2654	6 Edge Redevelopment Zone Act and conducts substantially
2655	2655	7 all of its operations in a River Edge Redevelopment
2656	2656	8 Zone or zones. This subparagraph (M) is exempt from
2657	2657	9 the provisions of Section 250;
2658	2658	10 (N) An amount equal to any contribution made to a
2659	2659	11 job training project established pursuant to the Tax
2660	2660	12 Increment Allocation Redevelopment Act;
2661	2661	13 (O) An amount equal to those dividends included in
2662	2662	14 such total that were paid by a corporation that
2663	2663	15 conducts business operations in a federally designated
2664	2664	16 Foreign Trade Zone or Sub-Zone and that is designated
2665	2665	17 a High Impact Business located in Illinois; provided
2666	2666	18 that dividends eligible for the deduction provided in
2667	2667	19 subparagraph (M) of paragraph (2) of this subsection
2668	2668	20 shall not be eligible for the deduction provided under
2669	2669	21 this subparagraph (O);
2670	2670	22 (P) An amount equal to the amount of the deduction
2671	2671	23 used to compute the federal income tax credit for
2672	2672	24 restoration of substantial amounts held under claim of
2673	2673	25 right for the taxable year pursuant to Section 1341 of
2674	2674	26 the Internal Revenue Code;
2675	2675
2676	2676
2677	2677
2678	2678
2679	2679
2680	2680	SB1467 - 74 - LRB103 28709 LNS 55091 b
2681	2681
2682	2682
2683	2683	SB1467- 75 -LRB103 28709 LNS 55091 b SB1467 - 75 - LRB103 28709 LNS 55091 b
2684	2684	SB1467 - 75 - LRB103 28709 LNS 55091 b
2685	2685	1 (Q) For taxable year 1999 and thereafter, an
2686	2686	2 amount equal to the amount of any (i) distributions,
2687	2687	3 to the extent includible in gross income for federal
2688	2688	4 income tax purposes, made to the taxpayer because of
2689	2689	5 his or her status as a victim of persecution for racial
2690	2690	6 or religious reasons by Nazi Germany or any other Axis
2691	2691	7 regime or as an heir of the victim and (ii) items of
2692	2692	8 income, to the extent includible in gross income for
2693	2693	9 federal income tax purposes, attributable to, derived
2694	2694	10 from or in any way related to assets stolen from,
2695	2695	11 hidden from, or otherwise lost to a victim of
2696	2696	12 persecution for racial or religious reasons by Nazi
2697	2697	13 Germany or any other Axis regime immediately prior to,
2698	2698	14 during, and immediately after World War II, including,
2699	2699	15 but not limited to, interest on the proceeds
2700	2700	16 receivable as insurance under policies issued to a
2701	2701	17 victim of persecution for racial or religious reasons
2702	2702	18 by Nazi Germany or any other Axis regime by European
2703	2703	19 insurance companies immediately prior to and during
2704	2704	20 World War II; provided, however, this subtraction from
2705	2705	21 federal adjusted gross income does not apply to assets
2706	2706	22 acquired with such assets or with the proceeds from
2707	2707	23 the sale of such assets; provided, further, this
2708	2708	24 paragraph shall only apply to a taxpayer who was the
2709	2709	25 first recipient of such assets after their recovery
2710	2710	26 and who is a victim of persecution for racial or
2711	2711
2712	2712
2713	2713
2714	2714
2715	2715
2716	2716	SB1467 - 75 - LRB103 28709 LNS 55091 b
2717	2717
2718	2718
2719	2719	SB1467- 76 -LRB103 28709 LNS 55091 b SB1467 - 76 - LRB103 28709 LNS 55091 b
2720	2720	SB1467 - 76 - LRB103 28709 LNS 55091 b
2721	2721	1 religious reasons by Nazi Germany or any other Axis
2722	2722	2 regime or as an heir of the victim. The amount of and
2723	2723	3 the eligibility for any public assistance, benefit, or
2724	2724	4 similar entitlement is not affected by the inclusion
2725	2725	5 of items (i) and (ii) of this paragraph in gross income
2726	2726	6 for federal income tax purposes. This paragraph is
2727	2727	7 exempt from the provisions of Section 250;
2728	2728	8 (R) For taxable years 2001 and thereafter, for the
2729	2729	9 taxable year in which the bonus depreciation deduction
2730	2730	10 is taken on the taxpayer's federal income tax return
2731	2731	11 under subsection (k) of Section 168 of the Internal
2732	2732	12 Revenue Code and for each applicable taxable year
2733	2733	13 thereafter, an amount equal to "x", where:
2734	2734	14 (1) "y" equals the amount of the depreciation
2735	2735	15 deduction taken for the taxable year on the
2736	2736	16 taxpayer's federal income tax return on property
2737	2737	17 for which the bonus depreciation deduction was
2738	2738	18 taken in any year under subsection (k) of Section
2739	2739	19 168 of the Internal Revenue Code, but not
2740	2740	20 including the bonus depreciation deduction;
2741	2741	21 (2) for taxable years ending on or before
2742	2742	22 December 31, 2005, "x" equals "y" multiplied by 30
2743	2743	23 and then divided by 70 (or "y" multiplied by
2744	2744	24 0.429); and
2745	2745	25 (3) for taxable years ending after December
2746	2746	26 31, 2005:
2747	2747
2748	2748
2749	2749
2750	2750
2751	2751
2752	2752	SB1467 - 76 - LRB103 28709 LNS 55091 b
2753	2753
2754	2754
2755	2755	SB1467- 77 -LRB103 28709 LNS 55091 b SB1467 - 77 - LRB103 28709 LNS 55091 b
2756	2756	SB1467 - 77 - LRB103 28709 LNS 55091 b
2757	2757	1 (i) for property on which a bonus
2758	2758	2 depreciation deduction of 30% of the adjusted
2759	2759	3 basis was taken, "x" equals "y" multiplied by
2760	2760	4 30 and then divided by 70 (or "y" multiplied
2761	2761	5 by 0.429);
2762	2762	6 (ii) for property on which a bonus
2763	2763	7 depreciation deduction of 50% of the adjusted
2764	2764	8 basis was taken, "x" equals "y" multiplied by
2765	2765	9 1.0;
2766	2766	10 (iii) for property on which a bonus
2767	2767	11 depreciation deduction of 100% of the adjusted
2768	2768	12 basis was taken in a taxable year ending on or
2769	2769	13 after December 31, 2021, "x" equals the
2770	2770	14 depreciation deduction that would be allowed
2771	2771	15 on that property if the taxpayer had made the
2772	2772	16 election under Section 168(k)(7) of the
2773	2773	17 Internal Revenue Code to not claim bonus
2774	2774	18 depreciation on that property; and
2775	2775	19 (iv) for property on which a bonus
2776	2776	20 depreciation deduction of a percentage other
2777	2777	21 than 30%, 50% or 100% of the adjusted basis
2778	2778	22 was taken in a taxable year ending on or after
2779	2779	23 December 31, 2021, "x" equals "y" multiplied
2780	2780	24 by 100 times the percentage bonus depreciation
2781	2781	25 on the property (that is, 100(bonus%)) and
2782	2782	26 then divided by 100 times 1 minus the
2783	2783
2784	2784
2785	2785
2786	2786
2787	2787
2788	2788	SB1467 - 77 - LRB103 28709 LNS 55091 b
2789	2789
2790	2790
2791	2791	SB1467- 78 -LRB103 28709 LNS 55091 b SB1467 - 78 - LRB103 28709 LNS 55091 b
2792	2792	SB1467 - 78 - LRB103 28709 LNS 55091 b
2793	2793	1 percentage bonus depreciation on the property
2794	2794	2 (that is, 100(1bonus%)).
2795	2795	3 The aggregate amount deducted under this
2796	2796	4 subparagraph in all taxable years for any one piece of
2797	2797	5 property may not exceed the amount of the bonus
2798	2798	6 depreciation deduction taken on that property on the
2799	2799	7 taxpayer's federal income tax return under subsection
2800	2800	8 (k) of Section 168 of the Internal Revenue Code. This
2801	2801	9 subparagraph (R) is exempt from the provisions of
2802	2802	10 Section 250;
2803	2803	11 (S) If the taxpayer sells, transfers, abandons, or
2804	2804	12 otherwise disposes of property for which the taxpayer
2805	2805	13 was required in any taxable year to make an addition
2806	2806	14 modification under subparagraph (G-10), then an amount
2807	2807	15 equal to that addition modification.
2808	2808	16 If the taxpayer continues to own property through
2809	2809	17 the last day of the last tax year for which a
2810	2810	18 subtraction is allowed with respect to that property
2811	2811	19 under subparagraph (R) and for which the taxpayer was
2812	2812	20 required in any taxable year to make an addition
2813	2813	21 modification under subparagraph (G-10), then an amount
2814	2814	22 equal to that addition modification.
2815	2815	23 The taxpayer is allowed to take the deduction
2816	2816	24 under this subparagraph only once with respect to any
2817	2817	25 one piece of property.
2818	2818	26 This subparagraph (S) is exempt from the
2819	2819
2820	2820
2821	2821
2822	2822
2823	2823
2824	2824	SB1467 - 78 - LRB103 28709 LNS 55091 b
2825	2825
2826	2826
2827	2827	SB1467- 79 -LRB103 28709 LNS 55091 b SB1467 - 79 - LRB103 28709 LNS 55091 b
2828	2828	SB1467 - 79 - LRB103 28709 LNS 55091 b
2829	2829	1 provisions of Section 250;
2830	2830	2 (T) The amount of (i) any interest income (net of
2831	2831	3 the deductions allocable thereto) taken into account
2832	2832	4 for the taxable year with respect to a transaction
2833	2833	5 with a taxpayer that is required to make an addition
2834	2834	6 modification with respect to such transaction under
2835	2835	7 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2836	2836	8 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2837	2837	9 the amount of such addition modification and (ii) any
2838	2838	10 income from intangible property (net of the deductions
2839	2839	11 allocable thereto) taken into account for the taxable
2840	2840	12 year with respect to a transaction with a taxpayer
2841	2841	13 that is required to make an addition modification with
2842	2842	14 respect to such transaction under Section
2843	2843	15 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2844	2844	16 203(d)(2)(D-8), but not to exceed the amount of such
2845	2845	17 addition modification. This subparagraph (T) is exempt
2846	2846	18 from the provisions of Section 250;
2847	2847	19 (U) An amount equal to the interest income taken
2848	2848	20 into account for the taxable year (net of the
2849	2849	21 deductions allocable thereto) with respect to
2850	2850	22 transactions with (i) a foreign person who would be a
2851	2851	23 member of the taxpayer's unitary business group but
2852	2852	24 for the fact the foreign person's business activity
2853	2853	25 outside the United States is 80% or more of that
2854	2854	26 person's total business activity and (ii) for taxable
2855	2855
2856	2856
2857	2857
2858	2858
2859	2859
2860	2860	SB1467 - 79 - LRB103 28709 LNS 55091 b
2861	2861
2862	2862
2863	2863	SB1467- 80 -LRB103 28709 LNS 55091 b SB1467 - 80 - LRB103 28709 LNS 55091 b
2864	2864	SB1467 - 80 - LRB103 28709 LNS 55091 b
2865	2865	1 years ending on or after December 31, 2008, to a person
2866	2866	2 who would be a member of the same unitary business
2867	2867	3 group but for the fact that the person is prohibited
2868	2868	4 under Section 1501(a)(27) from being included in the
2869	2869	5 unitary business group because he or she is ordinarily
2870	2870	6 required to apportion business income under different
2871	2871	7 subsections of Section 304, but not to exceed the
2872	2872	8 addition modification required to be made for the same
2873	2873	9 taxable year under Section 203(c)(2)(G-12) for
2874	2874	10 interest paid, accrued, or incurred, directly or
2875	2875	11 indirectly, to the same person. This subparagraph (U)
2876	2876	12 is exempt from the provisions of Section 250;
2877	2877	13 (V) An amount equal to the income from intangible
2878	2878	14 property taken into account for the taxable year (net
2879	2879	15 of the deductions allocable thereto) with respect to
2880	2880	16 transactions with (i) a foreign person who would be a
2881	2881	17 member of the taxpayer's unitary business group but
2882	2882	18 for the fact that the foreign person's business
2883	2883	19 activity outside the United States is 80% or more of
2884	2884	20 that person's total business activity and (ii) for
2885	2885	21 taxable years ending on or after December 31, 2008, to
2886	2886	22 a person who would be a member of the same unitary
2887	2887	23 business group but for the fact that the person is
2888	2888	24 prohibited under Section 1501(a)(27) from being
2889	2889	25 included in the unitary business group because he or
2890	2890	26 she is ordinarily required to apportion business
2891	2891
2892	2892
2893	2893
2894	2894
2895	2895
2896	2896	SB1467 - 80 - LRB103 28709 LNS 55091 b
2897	2897
2898	2898
2899	2899	SB1467- 81 -LRB103 28709 LNS 55091 b SB1467 - 81 - LRB103 28709 LNS 55091 b
2900	2900	SB1467 - 81 - LRB103 28709 LNS 55091 b
2901	2901	1 income under different subsections of Section 304, but
2902	2902	2 not to exceed the addition modification required to be
2903	2903	3 made for the same taxable year under Section
2904	2904	4 203(c)(2)(G-13) for intangible expenses and costs
2905	2905	5 paid, accrued, or incurred, directly or indirectly, to
2906	2906	6 the same foreign person. This subparagraph (V) is
2907	2907	7 exempt from the provisions of Section 250;
2908	2908	8 (W) in the case of an estate, an amount equal to
2909	2909	9 all amounts included in such total pursuant to the
2910	2910	10 provisions of Section 111 of the Internal Revenue Code
2911	2911	11 as a recovery of items previously deducted by the
2912	2912	12 decedent from adjusted gross income in the computation
2913	2913	13 of taxable income. This subparagraph (W) is exempt
2914	2914	14 from Section 250;
2915	2915	15 (X) an amount equal to the refund included in such
2916	2916	16 total of any tax deducted for federal income tax
2917	2917	17 purposes, to the extent that deduction was added back
2918	2918	18 under subparagraph (F). This subparagraph (X) is
2919	2919	19 exempt from the provisions of Section 250;
2920	2920	20 (Y) For taxable years ending on or after December
2921	2921	21 31, 2011, in the case of a taxpayer who was required to
2922	2922	22 add back any insurance premiums under Section
2923	2923	23 203(c)(2)(G-14), such taxpayer may elect to subtract
2924	2924	24 that part of a reimbursement received from the
2925	2925	25 insurance company equal to the amount of the expense
2926	2926	26 or loss (including expenses incurred by the insurance
2927	2927
2928	2928
2929	2929
2930	2930
2931	2931
2932	2932	SB1467 - 81 - LRB103 28709 LNS 55091 b
2933	2933
2934	2934
2935	2935	SB1467- 82 -LRB103 28709 LNS 55091 b SB1467 - 82 - LRB103 28709 LNS 55091 b
2936	2936	SB1467 - 82 - LRB103 28709 LNS 55091 b
2937	2937	1 company) that would have been taken into account as a
2938	2938	2 deduction for federal income tax purposes if the
2939	2939	3 expense or loss had been uninsured. If a taxpayer
2940	2940	4 makes the election provided for by this subparagraph
2941	2941	5 (Y), the insurer to which the premiums were paid must
2942	2942	6 add back to income the amount subtracted by the
2943	2943	7 taxpayer pursuant to this subparagraph (Y). This
2944	2944	8 subparagraph (Y) is exempt from the provisions of
2945	2945	9 Section 250; and
2946	2946	10 (Z) For taxable years beginning after December 31,
2947	2947	11 2018 and before January 1, 2026, the amount of excess
2948	2948	12 business loss of the taxpayer disallowed as a
2949	2949	13 deduction by Section 461(l)(1)(B) of the Internal
2950	2950	14 Revenue Code.
2951	2951	15 (3) Limitation. The amount of any modification
2952	2952	16 otherwise required under this subsection shall, under
2953	2953	17 regulations prescribed by the Department, be adjusted by
2954	2954	18 any amounts included therein which were properly paid,
2955	2955	19 credited, or required to be distributed, or permanently
2956	2956	20 set aside for charitable purposes pursuant to Internal
2957	2957	21 Revenue Code Section 642(c) during the taxable year.
2958	2958	22 (d) Partnerships.
2959	2959	23 (1) In general. In the case of a partnership, base
2960	2960	24 income means an amount equal to the taxpayer's taxable
2961	2961	25 income for the taxable year as modified by paragraph (2).
2962	2962
2963	2963
2964	2964
2965	2965
2966	2966
2967	2967	SB1467 - 82 - LRB103 28709 LNS 55091 b
2968	2968
2969	2969
2970	2970	SB1467- 83 -LRB103 28709 LNS 55091 b SB1467 - 83 - LRB103 28709 LNS 55091 b
2971	2971	SB1467 - 83 - LRB103 28709 LNS 55091 b
2972	2972	1 (2) Modifications. The taxable income referred to in
2973	2973	2 paragraph (1) shall be modified by adding thereto the sum
2974	2974	3 of the following amounts:
2975	2975	4 (A) An amount equal to all amounts paid or accrued
2976	2976	5 to the taxpayer as interest or dividends during the
2977	2977	6 taxable year to the extent excluded from gross income
2978	2978	7 in the computation of taxable income;
2979	2979	8 (B) An amount equal to the amount of tax imposed by
2980	2980	9 this Act to the extent deducted from gross income for
2981	2981	10 the taxable year;
2982	2982	11 (C) The amount of deductions allowed to the
2983	2983	12 partnership pursuant to Section 707 (c) of the
2984	2984	13 Internal Revenue Code in calculating its taxable
2985	2985	14 income;
2986	2986	15 (D) An amount equal to the amount of the capital
2987	2987	16 gain deduction allowable under the Internal Revenue
2988	2988	17 Code, to the extent deducted from gross income in the
2989	2989	18 computation of taxable income;
2990	2990	19 (D-5) For taxable years 2001 and thereafter, an
2991	2991	20 amount equal to the bonus depreciation deduction taken
2992	2992	21 on the taxpayer's federal income tax return for the
2993	2993	22 taxable year under subsection (k) of Section 168 of
2994	2994	23 the Internal Revenue Code;
2995	2995	24 (D-6) If the taxpayer sells, transfers, abandons,
2996	2996	25 or otherwise disposes of property for which the
2997	2997	26 taxpayer was required in any taxable year to make an
2998	2998
2999	2999
3000	3000
3001	3001
3002	3002
3003	3003	SB1467 - 83 - LRB103 28709 LNS 55091 b
3004	3004
3005	3005
3006	3006	SB1467- 84 -LRB103 28709 LNS 55091 b SB1467 - 84 - LRB103 28709 LNS 55091 b
3007	3007	SB1467 - 84 - LRB103 28709 LNS 55091 b
3008	3008	1 addition modification under subparagraph (D-5), then
3009	3009	2 an amount equal to the aggregate amount of the
3010	3010	3 deductions taken in all taxable years under
3011	3011	4 subparagraph (O) with respect to that property.
3012	3012	5 If the taxpayer continues to own property through
3013	3013	6 the last day of the last tax year for which a
3014	3014	7 subtraction is allowed with respect to that property
3015	3015	8 under subparagraph (O) and for which the taxpayer was
3016	3016	9 allowed in any taxable year to make a subtraction
3017	3017	10 modification under subparagraph (O), then an amount
3018	3018	11 equal to that subtraction modification.
3019	3019	12 The taxpayer is required to make the addition
3020	3020	13 modification under this subparagraph only once with
3021	3021	14 respect to any one piece of property;
3022	3022	15 (D-7) An amount equal to the amount otherwise
3023	3023	16 allowed as a deduction in computing base income for
3024	3024	17 interest paid, accrued, or incurred, directly or
3025	3025	18 indirectly, (i) for taxable years ending on or after
3026	3026	19 December 31, 2004, to a foreign person who would be a
3027	3027	20 member of the same unitary business group but for the
3028	3028	21 fact the foreign person's business activity outside
3029	3029	22 the United States is 80% or more of the foreign
3030	3030	23 person's total business activity and (ii) for taxable
3031	3031	24 years ending on or after December 31, 2008, to a person
3032	3032	25 who would be a member of the same unitary business
3033	3033	26 group but for the fact that the person is prohibited
3034	3034
3035	3035
3036	3036
3037	3037
3038	3038
3039	3039	SB1467 - 84 - LRB103 28709 LNS 55091 b
3040	3040
3041	3041
3042	3042	SB1467- 85 -LRB103 28709 LNS 55091 b SB1467 - 85 - LRB103 28709 LNS 55091 b
3043	3043	SB1467 - 85 - LRB103 28709 LNS 55091 b
3044	3044	1 under Section 1501(a)(27) from being included in the
3045	3045	2 unitary business group because he or she is ordinarily
3046	3046	3 required to apportion business income under different
3047	3047	4 subsections of Section 304. The addition modification
3048	3048	5 required by this subparagraph shall be reduced to the
3049	3049	6 extent that dividends were included in base income of
3050	3050	7 the unitary group for the same taxable year and
3051	3051	8 received by the taxpayer or by a member of the
3052	3052	9 taxpayer's unitary business group (including amounts
3053	3053	10 included in gross income pursuant to Sections 951
3054	3054	11 through 964 of the Internal Revenue Code and amounts
3055	3055	12 included in gross income under Section 78 of the
3056	3056	13 Internal Revenue Code) with respect to the stock of
3057	3057	14 the same person to whom the interest was paid,
3058	3058	15 accrued, or incurred.
3059	3059	16 This paragraph shall not apply to the following:
3060	3060	17 (i) an item of interest paid, accrued, or
3061	3061	18 incurred, directly or indirectly, to a person who
3062	3062	19 is subject in a foreign country or state, other
3063	3063	20 than a state which requires mandatory unitary
3064	3064	21 reporting, to a tax on or measured by net income
3065	3065	22 with respect to such interest; or
3066	3066	23 (ii) an item of interest paid, accrued, or
3067	3067	24 incurred, directly or indirectly, to a person if
3068	3068	25 the taxpayer can establish, based on a
3069	3069	26 preponderance of the evidence, both of the
3070	3070
3071	3071
3072	3072
3073	3073
3074	3074
3075	3075	SB1467 - 85 - LRB103 28709 LNS 55091 b
3076	3076
3077	3077
3078	3078	SB1467- 86 -LRB103 28709 LNS 55091 b SB1467 - 86 - LRB103 28709 LNS 55091 b
3079	3079	SB1467 - 86 - LRB103 28709 LNS 55091 b
3080	3080	1 following:
3081	3081	2 (a) the person, during the same taxable
3082	3082	3 year, paid, accrued, or incurred, the interest
3083	3083	4 to a person that is not a related member, and
3084	3084	5 (b) the transaction giving rise to the
3085	3085	6 interest expense between the taxpayer and the
3086	3086	7 person did not have as a principal purpose the
3087	3087	8 avoidance of Illinois income tax, and is paid
3088	3088	9 pursuant to a contract or agreement that
3089	3089	10 reflects an arm's-length interest rate and
3090	3090	11 terms; or
3091	3091	12 (iii) the taxpayer can establish, based on
3092	3092	13 clear and convincing evidence, that the interest
3093	3093	14 paid, accrued, or incurred relates to a contract
3094	3094	15 or agreement entered into at arm's-length rates
3095	3095	16 and terms and the principal purpose for the
3096	3096	17 payment is not federal or Illinois tax avoidance;
3097	3097	18 or
3098	3098	19 (iv) an item of interest paid, accrued, or
3099	3099	20 incurred, directly or indirectly, to a person if
3100	3100	21 the taxpayer establishes by clear and convincing
3101	3101	22 evidence that the adjustments are unreasonable; or
3102	3102	23 if the taxpayer and the Director agree in writing
3103	3103	24 to the application or use of an alternative method
3104	3104	25 of apportionment under Section 304(f).
3105	3105	26 Nothing in this subsection shall preclude the
3106	3106
3107	3107
3108	3108
3109	3109
3110	3110
3111	3111	SB1467 - 86 - LRB103 28709 LNS 55091 b
3112	3112
3113	3113
3114	3114	SB1467- 87 -LRB103 28709 LNS 55091 b SB1467 - 87 - LRB103 28709 LNS 55091 b
3115	3115	SB1467 - 87 - LRB103 28709 LNS 55091 b
3116	3116	1 Director from making any other adjustment
3117	3117	2 otherwise allowed under Section 404 of this Act
3118	3118	3 for any tax year beginning after the effective
3119	3119	4 date of this amendment provided such adjustment is
3120	3120	5 made pursuant to regulation adopted by the
3121	3121	6 Department and such regulations provide methods
3122	3122	7 and standards by which the Department will utilize
3123	3123	8 its authority under Section 404 of this Act; and
3124	3124	9 (D-8) An amount equal to the amount of intangible
3125	3125	10 expenses and costs otherwise allowed as a deduction in
3126	3126	11 computing base income, and that were paid, accrued, or
3127	3127	12 incurred, directly or indirectly, (i) for taxable
3128	3128	13 years ending on or after December 31, 2004, to a
3129	3129	14 foreign person who would be a member of the same
3130	3130	15 unitary business group but for the fact that the
3131	3131	16 foreign person's business activity outside the United
3132	3132	17 States is 80% or more of that person's total business
3133	3133	18 activity and (ii) for taxable years ending on or after
3134	3134	19 December 31, 2008, to a person who would be a member of
3135	3135	20 the same unitary business group but for the fact that
3136	3136	21 the person is prohibited under Section 1501(a)(27)
3137	3137	22 from being included in the unitary business group
3138	3138	23 because he or she is ordinarily required to apportion
3139	3139	24 business income under different subsections of Section
3140	3140	25 304. The addition modification required by this
3141	3141	26 subparagraph shall be reduced to the extent that
3142	3142
3143	3143
3144	3144
3145	3145
3146	3146
3147	3147	SB1467 - 87 - LRB103 28709 LNS 55091 b
3148	3148
3149	3149
3150	3150	SB1467- 88 -LRB103 28709 LNS 55091 b SB1467 - 88 - LRB103 28709 LNS 55091 b
3151	3151	SB1467 - 88 - LRB103 28709 LNS 55091 b
3152	3152	1 dividends were included in base income of the unitary
3153	3153	2 group for the same taxable year and received by the
3154	3154	3 taxpayer or by a member of the taxpayer's unitary
3155	3155	4 business group (including amounts included in gross
3156	3156	5 income pursuant to Sections 951 through 964 of the
3157	3157	6 Internal Revenue Code and amounts included in gross
3158	3158	7 income under Section 78 of the Internal Revenue Code)
3159	3159	8 with respect to the stock of the same person to whom
3160	3160	9 the intangible expenses and costs were directly or
3161	3161	10 indirectly paid, incurred or accrued. The preceding
3162	3162	11 sentence shall not apply to the extent that the same
3163	3163	12 dividends caused a reduction to the addition
3164	3164	13 modification required under Section 203(d)(2)(D-7) of
3165	3165	14 this Act. As used in this subparagraph, the term
3166	3166	15 "intangible expenses and costs" includes (1) expenses,
3167	3167	16 losses, and costs for, or related to, the direct or
3168	3168	17 indirect acquisition, use, maintenance or management,
3169	3169	18 ownership, sale, exchange, or any other disposition of
3170	3170	19 intangible property; (2) losses incurred, directly or
3171	3171	20 indirectly, from factoring transactions or discounting
3172	3172	21 transactions; (3) royalty, patent, technical, and
3173	3173	22 copyright fees; (4) licensing fees; and (5) other
3174	3174	23 similar expenses and costs. For purposes of this
3175	3175	24 subparagraph, "intangible property" includes patents,
3176	3176	25 patent applications, trade names, trademarks, service
3177	3177	26 marks, copyrights, mask works, trade secrets, and
3178	3178
3179	3179
3180	3180
3181	3181
3182	3182
3183	3183	SB1467 - 88 - LRB103 28709 LNS 55091 b
3184	3184
3185	3185
3186	3186	SB1467- 89 -LRB103 28709 LNS 55091 b SB1467 - 89 - LRB103 28709 LNS 55091 b
3187	3187	SB1467 - 89 - LRB103 28709 LNS 55091 b
3188	3188	1 similar types of intangible assets;
3189	3189	2 This paragraph shall not apply to the following:
3190	3190	3 (i) any item of intangible expenses or costs
3191	3191	4 paid, accrued, or incurred, directly or
3192	3192	5 indirectly, from a transaction with a person who
3193	3193	6 is subject in a foreign country or state, other
3194	3194	7 than a state which requires mandatory unitary
3195	3195	8 reporting, to a tax on or measured by net income
3196	3196	9 with respect to such item; or
3197	3197	10 (ii) any item of intangible expense or cost
3198	3198	11 paid, accrued, or incurred, directly or
3199	3199	12 indirectly, if the taxpayer can establish, based
3200	3200	13 on a preponderance of the evidence, both of the
3201	3201	14 following:
3202	3202	15 (a) the person during the same taxable
3203	3203	16 year paid, accrued, or incurred, the
3204	3204	17 intangible expense or cost to a person that is
3205	3205	18 not a related member, and
3206	3206	19 (b) the transaction giving rise to the
3207	3207	20 intangible expense or cost between the
3208	3208	21 taxpayer and the person did not have as a
3209	3209	22 principal purpose the avoidance of Illinois
3210	3210	23 income tax, and is paid pursuant to a contract
3211	3211	24 or agreement that reflects arm's-length terms;
3212	3212	25 or
3213	3213	26 (iii) any item of intangible expense or cost
3214	3214
3215	3215
3216	3216
3217	3217
3218	3218
3219	3219	SB1467 - 89 - LRB103 28709 LNS 55091 b
3220	3220
3221	3221
3222	3222	SB1467- 90 -LRB103 28709 LNS 55091 b SB1467 - 90 - LRB103 28709 LNS 55091 b
3223	3223	SB1467 - 90 - LRB103 28709 LNS 55091 b
3224	3224	1 paid, accrued, or incurred, directly or
3225	3225	2 indirectly, from a transaction with a person if
3226	3226	3 the taxpayer establishes by clear and convincing
3227	3227	4 evidence, that the adjustments are unreasonable;
3228	3228	5 or if the taxpayer and the Director agree in
3229	3229	6 writing to the application or use of an
3230	3230	7 alternative method of apportionment under Section
3231	3231	8 304(f);
3232	3232	9 Nothing in this subsection shall preclude the
3233	3233	10 Director from making any other adjustment
3234	3234	11 otherwise allowed under Section 404 of this Act
3235	3235	12 for any tax year beginning after the effective
3236	3236	13 date of this amendment provided such adjustment is
3237	3237	14 made pursuant to regulation adopted by the
3238	3238	15 Department and such regulations provide methods
3239	3239	16 and standards by which the Department will utilize
3240	3240	17 its authority under Section 404 of this Act;
3241	3241	18 (D-9) For taxable years ending on or after
3242	3242	19 December 31, 2008, an amount equal to the amount of
3243	3243	20 insurance premium expenses and costs otherwise allowed
3244	3244	21 as a deduction in computing base income, and that were
3245	3245	22 paid, accrued, or incurred, directly or indirectly, to
3246	3246	23 a person who would be a member of the same unitary
3247	3247	24 business group but for the fact that the person is
3248	3248	25 prohibited under Section 1501(a)(27) from being
3249	3249	26 included in the unitary business group because he or
3250	3250
3251	3251
3252	3252
3253	3253
3254	3254
3255	3255	SB1467 - 90 - LRB103 28709 LNS 55091 b
3256	3256
3257	3257
3258	3258	SB1467- 91 -LRB103 28709 LNS 55091 b SB1467 - 91 - LRB103 28709 LNS 55091 b
3259	3259	SB1467 - 91 - LRB103 28709 LNS 55091 b
3260	3260	1 she is ordinarily required to apportion business
3261	3261	2 income under different subsections of Section 304. The
3262	3262	3 addition modification required by this subparagraph
3263	3263	4 shall be reduced to the extent that dividends were
3264	3264	5 included in base income of the unitary group for the
3265	3265	6 same taxable year and received by the taxpayer or by a
3266	3266	7 member of the taxpayer's unitary business group
3267	3267	8 (including amounts included in gross income under
3268	3268	9 Sections 951 through 964 of the Internal Revenue Code
3269	3269	10 and amounts included in gross income under Section 78
3270	3270	11 of the Internal Revenue Code) with respect to the
3271	3271	12 stock of the same person to whom the premiums and costs
3272	3272	13 were directly or indirectly paid, incurred, or
3273	3273	14 accrued. The preceding sentence does not apply to the
3274	3274	15 extent that the same dividends caused a reduction to
3275	3275	16 the addition modification required under Section
3276	3276	17 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
3277	3277	18 (D-10) An amount equal to the credit allowable to
3278	3278	19 the taxpayer under Section 218(a) of this Act,
3279	3279	20 determined without regard to Section 218(c) of this
3280	3280	21 Act;
3281	3281	22 (D-11) For taxable years ending on or after
3282	3282	23 December 31, 2017, an amount equal to the deduction
3283	3283	24 allowed under Section 199 of the Internal Revenue Code
3284	3284	25 for the taxable year;
3285	3285	26 and by deducting from the total so obtained the following
3286	3286
3287	3287
3288	3288
3289	3289
3290	3290
3291	3291	SB1467 - 91 - LRB103 28709 LNS 55091 b
3292	3292
3293	3293
3294	3294	SB1467- 92 -LRB103 28709 LNS 55091 b SB1467 - 92 - LRB103 28709 LNS 55091 b
3295	3295	SB1467 - 92 - LRB103 28709 LNS 55091 b
3296	3296	1 amounts:
3297	3297	2 (E) The valuation limitation amount;
3298	3298	3 (F) An amount equal to the amount of any tax
3299	3299	4 imposed by this Act which was refunded to the taxpayer
3300	3300	5 and included in such total for the taxable year;
3301	3301	6 (G) An amount equal to all amounts included in
3302	3302	7 taxable income as modified by subparagraphs (A), (B),
3303	3303	8 (C) and (D) which are exempt from taxation by this
3304	3304	9 State either by reason of its statutes or Constitution
3305	3305	10 or by reason of the Constitution, treaties or statutes
3306	3306	11 of the United States; provided that, in the case of any
3307	3307	12 statute of this State that exempts income derived from
3308	3308	13 bonds or other obligations from the tax imposed under
3309	3309	14 this Act, the amount exempted shall be the interest
3310	3310	15 net of bond premium amortization;
3311	3311	16 (H) Any income of the partnership which
3312	3312	17 constitutes personal service income as defined in
3313	3313	18 Section 1348(b)(1) of the Internal Revenue Code (as in
3314	3314	19 effect December 31, 1981) or a reasonable allowance
3315	3315	20 for compensation paid or accrued for services rendered
3316	3316	21 by partners to the partnership, whichever is greater;
3317	3317	22 this subparagraph (H) is exempt from the provisions of
3318	3318	23 Section 250;
3319	3319	24 (I) An amount equal to all amounts of income
3320	3320	25 distributable to an entity subject to the Personal
3321	3321	26 Property Tax Replacement Income Tax imposed by
3322	3322
3323	3323
3324	3324
3325	3325
3326	3326
3327	3327	SB1467 - 92 - LRB103 28709 LNS 55091 b
3328	3328
3329	3329
3330	3330	SB1467- 93 -LRB103 28709 LNS 55091 b SB1467 - 93 - LRB103 28709 LNS 55091 b
3331	3331	SB1467 - 93 - LRB103 28709 LNS 55091 b
3332	3332	1 subsections (c) and (d) of Section 201 of this Act
3333	3333	2 including amounts distributable to organizations
3334	3334	3 exempt from federal income tax by reason of Section
3335	3335	4 501(a) of the Internal Revenue Code; this subparagraph
3336	3336	5 (I) is exempt from the provisions of Section 250;
3337	3337	6 (J) With the exception of any amounts subtracted
3338	3338	7 under subparagraph (G), an amount equal to the sum of
3339	3339	8 all amounts disallowed as deductions by (i) Sections
3340	3340	9 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3341	3341	10 and all amounts of expenses allocable to interest and
3342	3342	11 disallowed as deductions by Section 265(a)(1) of the
3343	3343	12 Internal Revenue Code; and (ii) for taxable years
3344	3344	13 ending on or after August 13, 1999, Sections
3345	3345	14 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3346	3346	15 Internal Revenue Code, plus, (iii) for taxable years
3347	3347	16 ending on or after December 31, 2011, Section
3348	3348	17 45G(e)(3) of the Internal Revenue Code and, for
3349	3349	18 taxable years ending on or after December 31, 2008,
3350	3350	19 any amount included in gross income under Section 87
3351	3351	20 of the Internal Revenue Code; the provisions of this
3352	3352	21 subparagraph are exempt from the provisions of Section
3353	3353	22 250;
3354	3354	23 (K) An amount equal to those dividends included in
3355	3355	24 such total which were paid by a corporation which
3356	3356	25 conducts business operations in a River Edge
3357	3357	26 Redevelopment Zone or zones created under the River
3358	3358
3359	3359
3360	3360
3361	3361
3362	3362
3363	3363	SB1467 - 93 - LRB103 28709 LNS 55091 b
3364	3364
3365	3365
3366	3366	SB1467- 94 -LRB103 28709 LNS 55091 b SB1467 - 94 - LRB103 28709 LNS 55091 b
3367	3367	SB1467 - 94 - LRB103 28709 LNS 55091 b
3368	3368	1 Edge Redevelopment Zone Act and conducts substantially
3369	3369	2 all of its operations from a River Edge Redevelopment
3370	3370	3 Zone or zones. This subparagraph (K) is exempt from
3371	3371	4 the provisions of Section 250;
3372	3372	5 (L) An amount equal to any contribution made to a
3373	3373	6 job training project established pursuant to the Real
3374	3374	7 Property Tax Increment Allocation Redevelopment Act;
3375	3375	8 (M) An amount equal to those dividends included in
3376	3376	9 such total that were paid by a corporation that
3377	3377	10 conducts business operations in a federally designated
3378	3378	11 Foreign Trade Zone or Sub-Zone and that is designated
3379	3379	12 a High Impact Business located in Illinois; provided
3380	3380	13 that dividends eligible for the deduction provided in
3381	3381	14 subparagraph (K) of paragraph (2) of this subsection
3382	3382	15 shall not be eligible for the deduction provided under
3383	3383	16 this subparagraph (M);
3384	3384	17 (N) An amount equal to the amount of the deduction
3385	3385	18 used to compute the federal income tax credit for
3386	3386	19 restoration of substantial amounts held under claim of
3387	3387	20 right for the taxable year pursuant to Section 1341 of
3388	3388	21 the Internal Revenue Code;
3389	3389	22 (O) For taxable years 2001 and thereafter, for the
3390	3390	23 taxable year in which the bonus depreciation deduction
3391	3391	24 is taken on the taxpayer's federal income tax return
3392	3392	25 under subsection (k) of Section 168 of the Internal
3393	3393	26 Revenue Code and for each applicable taxable year
3394	3394
3395	3395
3396	3396
3397	3397
3398	3398
3399	3399	SB1467 - 94 - LRB103 28709 LNS 55091 b
3400	3400
3401	3401
3402	3402	SB1467- 95 -LRB103 28709 LNS 55091 b SB1467 - 95 - LRB103 28709 LNS 55091 b
3403	3403	SB1467 - 95 - LRB103 28709 LNS 55091 b
3404	3404	1 thereafter, an amount equal to "x", where:
3405	3405	2 (1) "y" equals the amount of the depreciation
3406	3406	3 deduction taken for the taxable year on the
3407	3407	4 taxpayer's federal income tax return on property
3408	3408	5 for which the bonus depreciation deduction was
3409	3409	6 taken in any year under subsection (k) of Section
3410	3410	7 168 of the Internal Revenue Code, but not
3411	3411	8 including the bonus depreciation deduction;
3412	3412	9 (2) for taxable years ending on or before
3413	3413	10 December 31, 2005, "x" equals "y" multiplied by 30
3414	3414	11 and then divided by 70 (or "y" multiplied by
3415	3415	12 0.429); and
3416	3416	13 (3) for taxable years ending after December
3417	3417	14 31, 2005:
3418	3418	15 (i) for property on which a bonus
3419	3419	16 depreciation deduction of 30% of the adjusted
3420	3420	17 basis was taken, "x" equals "y" multiplied by
3421	3421	18 30 and then divided by 70 (or "y" multiplied
3422	3422	19 by 0.429);
3423	3423	20 (ii) for property on which a bonus
3424	3424	21 depreciation deduction of 50% of the adjusted
3425	3425	22 basis was taken, "x" equals "y" multiplied by
3426	3426	23 1.0;
3427	3427	24 (iii) for property on which a bonus
3428	3428	25 depreciation deduction of 100% of the adjusted
3429	3429	26 basis was taken in a taxable year ending on or
3430	3430
3431	3431
3432	3432
3433	3433
3434	3434
3435	3435	SB1467 - 95 - LRB103 28709 LNS 55091 b
3436	3436
3437	3437
3438	3438	SB1467- 96 -LRB103 28709 LNS 55091 b SB1467 - 96 - LRB103 28709 LNS 55091 b
3439	3439	SB1467 - 96 - LRB103 28709 LNS 55091 b
3440	3440	1 after December 31, 2021, "x" equals the
3441	3441	2 depreciation deduction that would be allowed
3442	3442	3 on that property if the taxpayer had made the
3443	3443	4 election under Section 168(k)(7) of the
3444	3444	5 Internal Revenue Code to not claim bonus
3445	3445	6 depreciation on that property; and
3446	3446	7 (iv) for property on which a bonus
3447	3447	8 depreciation deduction of a percentage other
3448	3448	9 than 30%, 50% or 100% of the adjusted basis
3449	3449	10 was taken in a taxable year ending on or after
3450	3450	11 December 31, 2021, "x" equals "y" multiplied
3451	3451	12 by 100 times the percentage bonus depreciation
3452	3452	13 on the property (that is, 100(bonus%)) and
3453	3453	14 then divided by 100 times 1 minus the
3454	3454	15 percentage bonus depreciation on the property
3455	3455	16 (that is, 100(1bonus%)).
3456	3456	17 The aggregate amount deducted under this
3457	3457	18 subparagraph in all taxable years for any one piece of
3458	3458	19 property may not exceed the amount of the bonus
3459	3459	20 depreciation deduction taken on that property on the
3460	3460	21 taxpayer's federal income tax return under subsection
3461	3461	22 (k) of Section 168 of the Internal Revenue Code. This
3462	3462	23 subparagraph (O) is exempt from the provisions of
3463	3463	24 Section 250;
3464	3464	25 (P) If the taxpayer sells, transfers, abandons, or
3465	3465	26 otherwise disposes of property for which the taxpayer
3466	3466
3467	3467
3468	3468
3469	3469
3470	3470
3471	3471	SB1467 - 96 - LRB103 28709 LNS 55091 b
3472	3472
3473	3473
3474	3474	SB1467- 97 -LRB103 28709 LNS 55091 b SB1467 - 97 - LRB103 28709 LNS 55091 b
3475	3475	SB1467 - 97 - LRB103 28709 LNS 55091 b
3476	3476	1 was required in any taxable year to make an addition
3477	3477	2 modification under subparagraph (D-5), then an amount
3478	3478	3 equal to that addition modification.
3479	3479	4 If the taxpayer continues to own property through
3480	3480	5 the last day of the last tax year for which a
3481	3481	6 subtraction is allowed with respect to that property
3482	3482	7 under subparagraph (O) and for which the taxpayer was
3483	3483	8 required in any taxable year to make an addition
3484	3484	9 modification under subparagraph (D-5), then an amount
3485	3485	10 equal to that addition modification.
3486	3486	11 The taxpayer is allowed to take the deduction
3487	3487	12 under this subparagraph only once with respect to any
3488	3488	13 one piece of property.
3489	3489	14 This subparagraph (P) is exempt from the
3490	3490	15 provisions of Section 250;
3491	3491	16 (Q) The amount of (i) any interest income (net of
3492	3492	17 the deductions allocable thereto) taken into account
3493	3493	18 for the taxable year with respect to a transaction
3494	3494	19 with a taxpayer that is required to make an addition
3495	3495	20 modification with respect to such transaction under
3496	3496	21 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3497	3497	22 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3498	3498	23 the amount of such addition modification and (ii) any
3499	3499	24 income from intangible property (net of the deductions
3500	3500	25 allocable thereto) taken into account for the taxable
3501	3501	26 year with respect to a transaction with a taxpayer
3502	3502
3503	3503
3504	3504
3505	3505
3506	3506
3507	3507	SB1467 - 97 - LRB103 28709 LNS 55091 b
3508	3508
3509	3509
3510	3510	SB1467- 98 -LRB103 28709 LNS 55091 b SB1467 - 98 - LRB103 28709 LNS 55091 b
3511	3511	SB1467 - 98 - LRB103 28709 LNS 55091 b
3512	3512	1 that is required to make an addition modification with
3513	3513	2 respect to such transaction under Section
3514	3514	3 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3515	3515	4 203(d)(2)(D-8), but not to exceed the amount of such
3516	3516	5 addition modification. This subparagraph (Q) is exempt
3517	3517	6 from Section 250;
3518	3518	7 (R) An amount equal to the interest income taken
3519	3519	8 into account for the taxable year (net of the
3520	3520	9 deductions allocable thereto) with respect to
3521	3521	10 transactions with (i) a foreign person who would be a
3522	3522	11 member of the taxpayer's unitary business group but
3523	3523	12 for the fact that the foreign person's business
3524	3524	13 activity outside the United States is 80% or more of
3525	3525	14 that person's total business activity and (ii) for
3526	3526	15 taxable years ending on or after December 31, 2008, to
3527	3527	16 a person who would be a member of the same unitary
3528	3528	17 business group but for the fact that the person is
3529	3529	18 prohibited under Section 1501(a)(27) from being
3530	3530	19 included in the unitary business group because he or
3531	3531	20 she is ordinarily required to apportion business
3532	3532	21 income under different subsections of Section 304, but
3533	3533	22 not to exceed the addition modification required to be
3534	3534	23 made for the same taxable year under Section
3535	3535	24 203(d)(2)(D-7) for interest paid, accrued, or
3536	3536	25 incurred, directly or indirectly, to the same person.
3537	3537	26 This subparagraph (R) is exempt from Section 250;
3538	3538
3539	3539
3540	3540
3541	3541
3542	3542
3543	3543	SB1467 - 98 - LRB103 28709 LNS 55091 b
3544	3544
3545	3545
3546	3546	SB1467- 99 -LRB103 28709 LNS 55091 b SB1467 - 99 - LRB103 28709 LNS 55091 b
3547	3547	SB1467 - 99 - LRB103 28709 LNS 55091 b
3548	3548	1 (S) An amount equal to the income from intangible
3549	3549	2 property taken into account for the taxable year (net
3550	3550	3 of the deductions allocable thereto) with respect to
3551	3551	4 transactions with (i) a foreign person who would be a
3552	3552	5 member of the taxpayer's unitary business group but
3553	3553	6 for the fact that the foreign person's business
3554	3554	7 activity outside the United States is 80% or more of
3555	3555	8 that person's total business activity and (ii) for
3556	3556	9 taxable years ending on or after December 31, 2008, to
3557	3557	10 a person who would be a member of the same unitary
3558	3558	11 business group but for the fact that the person is
3559	3559	12 prohibited under Section 1501(a)(27) from being
3560	3560	13 included in the unitary business group because he or
3561	3561	14 she is ordinarily required to apportion business
3562	3562	15 income under different subsections of Section 304, but
3563	3563	16 not to exceed the addition modification required to be
3564	3564	17 made for the same taxable year under Section
3565	3565	18 203(d)(2)(D-8) for intangible expenses and costs paid,
3566	3566	19 accrued, or incurred, directly or indirectly, to the
3567	3567	20 same person. This subparagraph (S) is exempt from
3568	3568	21 Section 250; and
3569	3569	22 (T) For taxable years ending on or after December
3570	3570	23 31, 2011, in the case of a taxpayer who was required to
3571	3571	24 add back any insurance premiums under Section
3572	3572	25 203(d)(2)(D-9), such taxpayer may elect to subtract
3573	3573	26 that part of a reimbursement received from the
3574	3574
3575	3575
3576	3576
3577	3577
3578	3578
3579	3579	SB1467 - 99 - LRB103 28709 LNS 55091 b
3580	3580
3581	3581
3582	3582	SB1467- 100 -LRB103 28709 LNS 55091 b SB1467 - 100 - LRB103 28709 LNS 55091 b
3583	3583	SB1467 - 100 - LRB103 28709 LNS 55091 b
3584	3584	1 insurance company equal to the amount of the expense
3585	3585	2 or loss (including expenses incurred by the insurance
3586	3586	3 company) that would have been taken into account as a
3587	3587	4 deduction for federal income tax purposes if the
3588	3588	5 expense or loss had been uninsured. If a taxpayer
3589	3589	6 makes the election provided for by this subparagraph
3590	3590	7 (T), the insurer to which the premiums were paid must
3591	3591	8 add back to income the amount subtracted by the
3592	3592	9 taxpayer pursuant to this subparagraph (T). This
3593	3593	10 subparagraph (T) is exempt from the provisions of
3594	3594	11 Section 250.
3595	3595	12 (e) Gross income; adjusted gross income; taxable income.
3596	3596	13 (1) In general. Subject to the provisions of paragraph
3597	3597	14 (2) and subsection (b)(3), for purposes of this Section
3598	3598	15 and Section 803(e), a taxpayer's gross income, adjusted
3599	3599	16 gross income, or taxable income for the taxable year shall
3600	3600	17 mean the amount of gross income, adjusted gross income or
3601	3601	18 taxable income properly reportable for federal income tax
3602	3602	19 purposes for the taxable year under the provisions of the
3603	3603	20 Internal Revenue Code. Taxable income may be less than
3604	3604	21 zero. However, for taxable years ending on or after
3605	3605	22 December 31, 1986, net operating loss carryforwards from
3606	3606	23 taxable years ending prior to December 31, 1986, may not
3607	3607	24 exceed the sum of federal taxable income for the taxable
3608	3608	25 year before net operating loss deduction, plus the excess
3609	3609
3610	3610
3611	3611
3612	3612
3613	3613
3614	3614	SB1467 - 100 - LRB103 28709 LNS 55091 b
3615	3615
3616	3616
3617	3617	SB1467- 101 -LRB103 28709 LNS 55091 b SB1467 - 101 - LRB103 28709 LNS 55091 b
3618	3618	SB1467 - 101 - LRB103 28709 LNS 55091 b
3619	3619	1 of addition modifications over subtraction modifications
3620	3620	2 for the taxable year. For taxable years ending prior to
3621	3621	3 December 31, 1986, taxable income may never be an amount
3622	3622	4 in excess of the net operating loss for the taxable year as
3623	3623	5 defined in subsections (c) and (d) of Section 172 of the
3624	3624	6 Internal Revenue Code, provided that when taxable income
3625	3625	7 of a corporation (other than a Subchapter S corporation),
3626	3626	8 trust, or estate is less than zero and addition
3627	3627	9 modifications, other than those provided by subparagraph
3628	3628	10 (E) of paragraph (2) of subsection (b) for corporations or
3629	3629	11 subparagraph (E) of paragraph (2) of subsection (c) for
3630	3630	12 trusts and estates, exceed subtraction modifications, an
3631	3631	13 addition modification must be made under those
3632	3632	14 subparagraphs for any other taxable year to which the
3633	3633	15 taxable income less than zero (net operating loss) is
3634	3634	16 applied under Section 172 of the Internal Revenue Code or
3635	3635	17 under subparagraph (E) of paragraph (2) of this subsection
3636	3636	18 (e) applied in conjunction with Section 172 of the
3637	3637	19 Internal Revenue Code.
3638	3638	20 (2) Special rule. For purposes of paragraph (1) of
3639	3639	21 this subsection, the taxable income properly reportable
3640	3640	22 for federal income tax purposes shall mean:
3641	3641	23 (A) Certain life insurance companies. In the case
3642	3642	24 of a life insurance company subject to the tax imposed
3643	3643	25 by Section 801 of the Internal Revenue Code, life
3644	3644	26 insurance company taxable income, plus the amount of
3645	3645
3646	3646
3647	3647
3648	3648
3649	3649
3650	3650	SB1467 - 101 - LRB103 28709 LNS 55091 b
3651	3651
3652	3652
3653	3653	SB1467- 102 -LRB103 28709 LNS 55091 b SB1467 - 102 - LRB103 28709 LNS 55091 b
3654	3654	SB1467 - 102 - LRB103 28709 LNS 55091 b
3655	3655	1 distribution from pre-1984 policyholder surplus
3656	3656	2 accounts as calculated under Section 815a of the
3657	3657	3 Internal Revenue Code;
3658	3658	4 (B) Certain other insurance companies. In the case
3659	3659	5 of mutual insurance companies subject to the tax
3660	3660	6 imposed by Section 831 of the Internal Revenue Code,
3661	3661	7 insurance company taxable income;
3662	3662	8 (C) Regulated investment companies. In the case of
3663	3663	9 a regulated investment company subject to the tax
3664	3664	10 imposed by Section 852 of the Internal Revenue Code,
3665	3665	11 investment company taxable income;
3666	3666	12 (D) Real estate investment trusts. In the case of
3667	3667	13 a real estate investment trust subject to the tax
3668	3668	14 imposed by Section 857 of the Internal Revenue Code,
3669	3669	15 real estate investment trust taxable income;
3670	3670	16 (E) Consolidated corporations. In the case of a
3671	3671	17 corporation which is a member of an affiliated group
3672	3672	18 of corporations filing a consolidated income tax
3673	3673	19 return for the taxable year for federal income tax
3674	3674	20 purposes, taxable income determined as if such
3675	3675	21 corporation had filed a separate return for federal
3676	3676	22 income tax purposes for the taxable year and each
3677	3677	23 preceding taxable year for which it was a member of an
3678	3678	24 affiliated group. For purposes of this subparagraph,
3679	3679	25 the taxpayer's separate taxable income shall be
3680	3680	26 determined as if the election provided by Section
3681	3681
3682	3682
3683	3683
3684	3684
3685	3685
3686	3686	SB1467 - 102 - LRB103 28709 LNS 55091 b
3687	3687
3688	3688
3689	3689	SB1467- 103 -LRB103 28709 LNS 55091 b SB1467 - 103 - LRB103 28709 LNS 55091 b
3690	3690	SB1467 - 103 - LRB103 28709 LNS 55091 b
3691	3691	1 243(b)(2) of the Internal Revenue Code had been in
3692	3692	2 effect for all such years;
3693	3693	3 (F) Cooperatives. In the case of a cooperative
3694	3694	4 corporation or association, the taxable income of such
3695	3695	5 organization determined in accordance with the
3696	3696	6 provisions of Section 1381 through 1388 of the
3697	3697	7 Internal Revenue Code, but without regard to the
3698	3698	8 prohibition against offsetting losses from patronage
3699	3699	9 activities against income from nonpatronage
3700	3700	10 activities; except that a cooperative corporation or
3701	3701	11 association may make an election to follow its federal
3702	3702	12 income tax treatment of patronage losses and
3703	3703	13 nonpatronage losses. In the event such election is
3704	3704	14 made, such losses shall be computed and carried over
3705	3705	15 in a manner consistent with subsection (a) of Section
3706	3706	16 207 of this Act and apportioned by the apportionment
3707	3707	17 factor reported by the cooperative on its Illinois
3708	3708	18 income tax return filed for the taxable year in which
3709	3709	19 the losses are incurred. The election shall be
3710	3710	20 effective for all taxable years with original returns
3711	3711	21 due on or after the date of the election. In addition,
3712	3712	22 the cooperative may file an amended return or returns,
3713	3713	23 as allowed under this Act, to provide that the
3714	3714	24 election shall be effective for losses incurred or
3715	3715	25 carried forward for taxable years occurring prior to
3716	3716	26 the date of the election. Once made, the election may
3717	3717
3718	3718
3719	3719
3720	3720
3721	3721
3722	3722	SB1467 - 103 - LRB103 28709 LNS 55091 b
3723	3723
3724	3724
3725	3725	SB1467- 104 -LRB103 28709 LNS 55091 b SB1467 - 104 - LRB103 28709 LNS 55091 b
3726	3726	SB1467 - 104 - LRB103 28709 LNS 55091 b
3727	3727	1 only be revoked upon approval of the Director. The
3728	3728	2 Department shall adopt rules setting forth
3729	3729	3 requirements for documenting the elections and any
3730	3730	4 resulting Illinois net loss and the standards to be
3731	3731	5 used by the Director in evaluating requests to revoke
3732	3732	6 elections. Public Act 96-932 is declaratory of
3733	3733	7 existing law;
3734	3734	8 (G) Subchapter S corporations. In the case of: (i)
3735	3735	9 a Subchapter S corporation for which there is in
3736	3736	10 effect an election for the taxable year under Section
3737	3737	11 1362 of the Internal Revenue Code, the taxable income
3738	3738	12 of such corporation determined in accordance with
3739	3739	13 Section 1363(b) of the Internal Revenue Code, except
3740	3740	14 that taxable income shall take into account those
3741	3741	15 items which are required by Section 1363(b)(1) of the
3742	3742	16 Internal Revenue Code to be separately stated; and
3743	3743	17 (ii) a Subchapter S corporation for which there is in
3744	3744	18 effect a federal election to opt out of the provisions
3745	3745	19 of the Subchapter S Revision Act of 1982 and have
3746	3746	20 applied instead the prior federal Subchapter S rules
3747	3747	21 as in effect on July 1, 1982, the taxable income of
3748	3748	22 such corporation determined in accordance with the
3749	3749	23 federal Subchapter S rules as in effect on July 1,
3750	3750	24 1982; and
3751	3751	25 (H) Partnerships. In the case of a partnership,
3752	3752	26 taxable income determined in accordance with Section
3753	3753
3754	3754
3755	3755
3756	3756
3757	3757
3758	3758	SB1467 - 104 - LRB103 28709 LNS 55091 b
3759	3759
3760	3760
3761	3761	SB1467- 105 -LRB103 28709 LNS 55091 b SB1467 - 105 - LRB103 28709 LNS 55091 b
3762	3762	SB1467 - 105 - LRB103 28709 LNS 55091 b
3763	3763	1 703 of the Internal Revenue Code, except that taxable
3764	3764	2 income shall take into account those items which are
3765	3765	3 required by Section 703(a)(1) to be separately stated
3766	3766	4 but which would be taken into account by an individual
3767	3767	5 in calculating his taxable income.
3768	3768	6 (3) Recapture of business expenses on disposition of
3769	3769	7 asset or business. Notwithstanding any other law to the
3770	3770	8 contrary, if in prior years income from an asset or
3771	3771	9 business has been classified as business income and in a
3772	3772	10 later year is demonstrated to be non-business income, then
3773	3773	11 all expenses, without limitation, deducted in such later
3774	3774	12 year and in the 2 immediately preceding taxable years
3775	3775	13 related to that asset or business that generated the
3776	3776	14 non-business income shall be added back and recaptured as
3777	3777	15 business income in the year of the disposition of the
3778	3778	16 asset or business. Such amount shall be apportioned to
3779	3779	17 Illinois using the greater of the apportionment fraction
3780	3780	18 computed for the business under Section 304 of this Act
3781	3781	19 for the taxable year or the average of the apportionment
3782	3782	20 fractions computed for the business under Section 304 of
3783	3783	21 this Act for the taxable year and for the 2 immediately
3784	3784	22 preceding taxable years.
3785	3785	23 (f) Valuation limitation amount.
3786	3786	24 (1) In general. The valuation limitation amount
3787	3787	25 referred to in subsections (a)(2)(G), (c)(2)(I) and
3788	3788
3789	3789
3790	3790
3791	3791
3792	3792
3793	3793	SB1467 - 105 - LRB103 28709 LNS 55091 b
3794	3794
3795	3795
3796	3796	SB1467- 106 -LRB103 28709 LNS 55091 b SB1467 - 106 - LRB103 28709 LNS 55091 b
3797	3797	SB1467 - 106 - LRB103 28709 LNS 55091 b
3798	3798	1 (d)(2)(E) is an amount equal to:
3799	3799	2 (A) The sum of the pre-August 1, 1969 appreciation
3800	3800	3 amounts (to the extent consisting of gain reportable
3801	3801	4 under the provisions of Section 1245 or 1250 of the
3802	3802	5 Internal Revenue Code) for all property in respect of
3803	3803	6 which such gain was reported for the taxable year;
3804	3804	7 plus
3805	3805	8 (B) The lesser of (i) the sum of the pre-August 1,
3806	3806	9 1969 appreciation amounts (to the extent consisting of
3807	3807	10 capital gain) for all property in respect of which
3808	3808	11 such gain was reported for federal income tax purposes
3809	3809	12 for the taxable year, or (ii) the net capital gain for
3810	3810	13 the taxable year, reduced in either case by any amount
3811	3811	14 of such gain included in the amount determined under
3812	3812	15 subsection (a)(2)(F) or (c)(2)(H).
3813	3813	16 (2) Pre-August 1, 1969 appreciation amount.
3814	3814	17 (A) If the fair market value of property referred
3815	3815	18 to in paragraph (1) was readily ascertainable on
3816	3816	19 August 1, 1969, the pre-August 1, 1969 appreciation
3817	3817	20 amount for such property is the lesser of (i) the
3818	3818	21 excess of such fair market value over the taxpayer's
3819	3819	22 basis (for determining gain) for such property on that
3820	3820	23 date (determined under the Internal Revenue Code as in
3821	3821	24 effect on that date), or (ii) the total gain realized
3822	3822	25 and reportable for federal income tax purposes in
3823	3823	26 respect of the sale, exchange or other disposition of
3824	3824
3825	3825
3826	3826
3827	3827
3828	3828
3829	3829	SB1467 - 106 - LRB103 28709 LNS 55091 b
3830	3830
3831	3831
3832	3832	SB1467- 107 -LRB103 28709 LNS 55091 b SB1467 - 107 - LRB103 28709 LNS 55091 b
3833	3833	SB1467 - 107 - LRB103 28709 LNS 55091 b
3834	3834	1 such property.
3835	3835	2 (B) If the fair market value of property referred
3836	3836	3 to in paragraph (1) was not readily ascertainable on
3837	3837	4 August 1, 1969, the pre-August 1, 1969 appreciation
3838	3838	5 amount for such property is that amount which bears
3839	3839	6 the same ratio to the total gain reported in respect of
3840	3840	7 the property for federal income tax purposes for the
3841	3841	8 taxable year, as the number of full calendar months in
3842	3842	9 that part of the taxpayer's holding period for the
3843	3843	10 property ending July 31, 1969 bears to the number of
3844	3844	11 full calendar months in the taxpayer's entire holding
3845	3845	12 period for the property.
3846	3846	13 (C) The Department shall prescribe such
3847	3847	14 regulations as may be necessary to carry out the
3848	3848	15 purposes of this paragraph.
3849	3849	16 (g) Double deductions. Unless specifically provided
3850	3850	17 otherwise, nothing in this Section shall permit the same item
3851	3851	18 to be deducted more than once.
3852	3852	19 (h) Legislative intention. Except as expressly provided by
3853	3853	20 this Section there shall be no modifications or limitations on
3854	3854	21 the amounts of income, gain, loss or deduction taken into
3855	3855	22 account in determining gross income, adjusted gross income or
3856	3856	23 taxable income for federal income tax purposes for the taxable
3857	3857	24 year, or in the amount of such items entering into the
3858	3858
3859	3859
3860	3860
3861	3861
3862	3862
3863	3863	SB1467 - 107 - LRB103 28709 LNS 55091 b
3864	3864
3865	3865
3866	3866	SB1467- 108 -LRB103 28709 LNS 55091 b SB1467 - 108 - LRB103 28709 LNS 55091 b
3867	3867	SB1467 - 108 - LRB103 28709 LNS 55091 b
3868	3868	1 computation of base income and net income under this Act for
3869	3869	2 such taxable year, whether in respect of property values as of
3870	3870	3 August 1, 1969 or otherwise.
3871	3871	4 (Source: P.A. 101-9, eff. 6-5-19; 101-81, eff. 7-12-19;
3872	3872	5 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658, eff.
3873	3873	6 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. 12-21-22.)
3874	3874	7 Section 50. The Criminal Code of 2012 is amended by
3875	3875	8 changing Section 11-1.20 as follows:
3876	3876	9 (720 ILCS 5/11-1.20) (was 720 ILCS 5/12-13)
3877	3877	10 Sec. 11-1.20. Criminal sexual assault.
3878	3878	11 (a) A person commits criminal sexual assault if that
3879	3879	12 person commits an act of sexual penetration and:
3880	3880	13 (1) uses force or threat of force;
3881	3881	14 (2) knows that the victim is unable to understand the
3882	3882	15 nature of the act or is unable to give knowing consent;
3883	3883	16 (3) is a family member of the victim, and the victim is
3884	3884	17 under 18 years of age; or
3885	3885	18 (4) is 17 years of age or over and holds a position of
3886	3886	19 trust, authority, or supervision in relation to the
3887	3887	20 victim, and the victim is at least 13 years of age but
3888	3888	21 under 18 years of age.
3889	3889	22 (a-5) A person commits criminal sexual assault if that
3890	3890	23 person is a health care provider who knowingly or
3891	3891	24 intentionally provides assisted reproductive treatment to a
3892	3892
3893	3893
3894	3894
3895	3895
3896	3896
3897	3897	SB1467 - 108 - LRB103 28709 LNS 55091 b
3898	3898
3899	3899
3900	3900	SB1467- 109 -LRB103 28709 LNS 55091 b SB1467 - 109 - LRB103 28709 LNS 55091 b
3901	3901	SB1467 - 109 - LRB103 28709 LNS 55091 b
3902	3902	1 patient by using the health care provider's own spermatozoon
3903	3903	2 or ovum without the patient's informed written consent to
3904	3904	3 treatment using the health care provider's spermatozoon or
3905	3905	4 ovum.
3906	3906	5 (b) Sentence.
3907	3907	6 (1) Criminal sexual assault is a Class 1 felony,
3908	3908	7 except that:
3909	3909	8 (A) A person who is convicted of the offense of
3910	3910	9 criminal sexual assault as defined in paragraph (a)(1)
3911	3911	10 or (a)(2) after having previously been convicted of
3912	3912	11 the offense of criminal sexual assault or the offense
3913	3913	12 of exploitation of a child, or who is convicted of the
3914	3914	13 offense of criminal sexual assault as defined in
3915	3915	14 paragraph (a)(1) or (a)(2) after having previously
3916	3916	15 been convicted under the laws of this State or any
3917	3917	16 other state of an offense that is substantially
3918	3918	17 equivalent to the offense of criminal sexual assault
3919	3919	18 or to the offense of exploitation of a child, commits a
3920	3920	19 Class X felony for which the person shall be sentenced
3921	3921	20 to a term of imprisonment of not less than 30 years and
3922	3922	21 not more than 60 years, except that if the person is
3923	3923	22 under the age of 18 years at the time of the offense,
3924	3924	23 he or she shall be sentenced under Section 5-4.5-105
3925	3925	24 of the Unified Code of Corrections. The commission of
3926	3926	25 the second or subsequent offense is required to have
3927	3927	26 been after the initial conviction for this paragraph
3928	3928
3929	3929
3930	3930
3931	3931
3932	3932
3933	3933	SB1467 - 109 - LRB103 28709 LNS 55091 b
3934	3934
3935	3935
3936	3936	SB1467- 110 -LRB103 28709 LNS 55091 b SB1467 - 110 - LRB103 28709 LNS 55091 b
3937	3937	SB1467 - 110 - LRB103 28709 LNS 55091 b
3938	3938	1 (A) to apply.
3939	3939	2 (B) A person who has attained the age of 18 years
3940	3940	3 at the time of the commission of the offense and who is
3941	3941	4 convicted of the offense of criminal sexual assault as
3942	3942	5 defined in paragraph (a)(1) or (a)(2) after having
3943	3943	6 previously been convicted of the offense of aggravated
3944	3944	7 criminal sexual assault or the offense of predatory
3945	3945	8 criminal sexual assault of a child, or who is
3946	3946	9 convicted of the offense of criminal sexual assault as
3947	3947	10 defined in paragraph (a)(1) or (a)(2) after having
3948	3948	11 previously been convicted under the laws of this State
3949	3949	12 or any other state of an offense that is substantially
3950	3950	13 equivalent to the offense of aggravated criminal
3951	3951	14 sexual assault or the offense of predatory criminal
3952	3952	15 sexual assault of a child shall be sentenced to a term
3953	3953	16 of natural life imprisonment. The commission of the
3954	3954	17 second or subsequent offense is required to have been
3955	3955	18 after the initial conviction for this paragraph (B) to
3956	3956	19 apply. An offender under the age of 18 years at the
3957	3957	20 time of the commission of the offense covered by this
3958	3958	21 subparagraph (B) shall be sentenced under Section
3959	3959	22 5-4.5-105 of the Unified Code of Corrections.
3960	3960	23 (C) A second or subsequent conviction for a
3961	3961	24 violation of paragraph (a)(3) or (a)(4) or subsection
3962	3962	25 (a-5) or under any similar statute of this State or any
3963	3963	26 other state for any offense involving criminal sexual
3964	3964
3965	3965
3966	3966
3967	3967
3968	3968
3969	3969	SB1467 - 110 - LRB103 28709 LNS 55091 b
3970	3970
3971	3971
3972	3972	SB1467- 111 -LRB103 28709 LNS 55091 b SB1467 - 111 - LRB103 28709 LNS 55091 b
3973	3973	SB1467 - 111 - LRB103 28709 LNS 55091 b
3974	3974	1 assault that is substantially equivalent to or more
3975	3975	2 serious than the sexual assault prohibited under
3976	3976	3 paragraph (a)(3) or (a)(4) or subsection (a-5) is a
3977	3977	4 Class X felony.
3978	3978	5 (Source: P.A. 99-69, eff. 1-1-16.)
3979	3979	6 Section 55. The Code of Civil Procedure is amended by
3980	3980	7 changing Section 13-212 and by adding Section 13-215.1 as
3981	3981	8 follows:
3982	3982	9 (735 ILCS 5/13-212) (from Ch. 110, par. 13-212)
3983	3983	10 Sec. 13-212. Physician or hospital.
3984	3984	11 (a) Except as provided in Section 13-215 or 13-215.1 of
3985	3985	12 this Act, no action for damages for injury or death against any
3986	3986	13 physician, dentist, registered nurse or hospital duly licensed
3987	3987	14 under the laws of this State, whether based upon tort, or
3988	3988	15 breach of contract, or otherwise, arising out of patient care
3989	3989	16 shall be brought more than 2 years after the date on which the
3990	3990	17 claimant knew, or through the use of reasonable diligence
3991	3991	18 should have known, or received notice in writing of the
3992	3992	19 existence of the injury or death for which damages are sought
3993	3993	20 in the action, whichever of such date occurs first, but in no
3994	3994	21 event shall such action be brought more than 4 years after the
3995	3995	22 date on which occurred the act or omission or occurrence
3996	3996	23 alleged in such action to have been the cause of such injury or
3997	3997	24 death.
3998	3998
3999	3999
4000	4000
4001	4001
4002	4002
4003	4003	SB1467 - 111 - LRB103 28709 LNS 55091 b
4004	4004
4005	4005
4006	4006	SB1467- 112 -LRB103 28709 LNS 55091 b SB1467 - 112 - LRB103 28709 LNS 55091 b
4007	4007	SB1467 - 112 - LRB103 28709 LNS 55091 b
4008	4008	1 (b) Except as provided in Section 13-215 or 13-215.1 of
4009	4009	2 this Act, no action for damages for injury or death against any
4010	4010	3 physician, dentist, registered nurse or hospital duly licensed
4011	4011	4 under the laws of this State, whether based upon tort, or
4012	4012	5 breach of contract, or otherwise, arising out of patient care
4013	4013	6 shall be brought more than 8 years after the date on which
4014	4014	7 occurred the act or omission or occurrence alleged in such
4015	4015	8 action to have been the cause of such injury or death where the
4016	4016	9 person entitled to bring the action was, at the time the cause
4017	4017	10 of action accrued, under the age of 18 years; provided,
4018	4018	11 however, that in no event may the cause of action be brought
4019	4019	12 after the person's 22nd birthday. If the person was under the
4020	4020	13 age of 18 years when the cause of action accrued and, as a
4021	4021	14 result of this amendatory Act of 1987, the action is either
4022	4022	15 barred or there remains less than 3 years to bring such action,
4023	4023	16 then he or she may bring the action within 3 years of July 20,
4024	4024	17 1987.
4025	4025	18 (c) If the person entitled to bring an action described in
4026	4026	19 this Section is, at the time the cause of action accrued, under
4027	4027	20 a legal disability other than being under the age of 18 years,
4028	4028	21 then the period of limitations does not begin to run until the
4029	4029	22 disability is removed.
4030	4030	23 (d) If the person entitled to bring an action described in
4031	4031	24 this Section is not under a legal disability at the time the
4032	4032	25 cause of action accrues, but becomes under a legal disability
4033	4033	26 before the period of limitations otherwise runs, the period of
4034	4034
4035	4035
4036	4036
4037	4037
4038	4038
4039	4039	SB1467 - 112 - LRB103 28709 LNS 55091 b
4040	4040
4041	4041
4042	4042	SB1467- 113 -LRB103 28709 LNS 55091 b SB1467 - 113 - LRB103 28709 LNS 55091 b
4043	4043	SB1467 - 113 - LRB103 28709 LNS 55091 b
4044	4044	1 limitations is stayed until the disability is removed. This
4045	4045	2 subsection (d) does not invalidate any statute of repose
4046	4046	3 provisions contained in this Section. This subsection (d)
4047	4047	4 applies to actions commenced or pending on or after the
4048	4048	5 effective date of this amendatory Act of the 98th General
4049	4049	6 Assembly.
4050	4050	7 (Source: P.A. 98-1077, eff. 1-1-15.)
4051	4051	8 (735 ILCS 5/13-215.1 new)
4052	4052	9 Sec. 13-215.1. Fertility fraud limitation. Notwithstanding
4053	4053	10 any other provision of the law, an action for fertility fraud
4054	4054	11 under the Illinois Fertility Fraud Act must be commenced
4055	4055	12 within the later of 20 years after:
4056	4056	13 (1) the procedure was performed;
4057	4057	14 (2) the 18th birthday of the child;
4058	4058	15 (3) the person first discovers evidence sufficient to
4059	4059	16 bring an action against the defendant through DNA
4060	4060	17 (deoxyribonucleic acid) analysis;
4061	4061	18 (4) the person first becomes aware of the existence of
4062	4062	19 a record that provides evidence sufficient to bring an
4063	4063	20 action against the defendant; or
4064	4064	21 (5) the defendant confesses to the offense.
4065	4065	SB1467- 114 -LRB103 28709 LNS 55091 b 1 INDEX 2 Statutes amended in order of appearance SB1467- 114 -LRB103 28709 LNS 55091 b SB1467 - 114 - LRB103 28709 LNS 55091 b 1 INDEX 2 Statutes amended in order of appearance
4066	4066	SB1467- 114 -LRB103 28709 LNS 55091 b SB1467 - 114 - LRB103 28709 LNS 55091 b
4067	4067	SB1467 - 114 - LRB103 28709 LNS 55091 b
4068	4068	1 INDEX
4069	4069	2 Statutes amended in order of appearance
4070	4070
4071	4071
4072	4072
4073	4073
4074	4074
4075	4075	SB1467 - 113 - LRB103 28709 LNS 55091 b
4076	4076
4077	4077
4078	4078
4079	4079	SB1467- 114 -LRB103 28709 LNS 55091 b SB1467 - 114 - LRB103 28709 LNS 55091 b
4080	4080	SB1467 - 114 - LRB103 28709 LNS 55091 b
4081	4081	1 INDEX
4082	4082	2 Statutes amended in order of appearance
4083	4083
4084	4084
4085	4085
4086	4086
4087	4087
4088	4088	SB1467 - 114 - LRB103 28709 LNS 55091 b