Illinois 2025-2026 Regular Session

Illinois House Bill HB1573 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1573 Introduced , by Rep. Katie Stuart SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately. LRB104 06505 HLH 16541 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1573 Introduced , by Rep. Katie Stuart SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 35 ILCS 5/203 Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately. LRB104 06505 HLH 16541 b LRB104 06505 HLH 16541 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1573 Introduced , by Rep. Katie Stuart SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/203 35 ILCS 5/203
4	4	35 ILCS 5/203
5	5	Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately.
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8	8	A BILL FOR
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10	10	HB1573 LRB104 06505 HLH 16541 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Income Tax Act is amended by
15	15	5 changing Section 203 as follows:
16	16	6 (35 ILCS 5/203)
17	17	7 Sec. 203. Base income defined.
18	18	8 (a) Individuals.
19	19	9 (1) In general. In the case of an individual, base
20	20	10 income means an amount equal to the taxpayer's adjusted
21	21	11 gross income for the taxable year as modified by paragraph
22	22	12 (2).
23	23	13 (2) Modifications. The adjusted gross income referred
24	24	14 to in paragraph (1) shall be modified by adding thereto
25	25	15 the sum of the following amounts:
26	26	16 (A) An amount equal to all amounts paid or accrued
27	27	17 to the taxpayer as interest or dividends during the
28	28	18 taxable year to the extent excluded from gross income
29	29	19 in the computation of adjusted gross income, except
30	30	20 stock dividends of qualified public utilities
31	31	21 described in Section 305(e) of the Internal Revenue
32	32	22 Code;
33	33	23 (B) An amount equal to the amount of tax imposed by
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1573 Introduced , by Rep. Katie Stuart SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/203 35 ILCS 5/203
39	39	35 ILCS 5/203
40	40	Amends the Illinois Income Tax Act. Creates an income tax deduction for any amounts paid by the taxpayer's employer on behalf of the taxpayer as part of an educational assistance program. Creates an income tax deduction for any amounts paid by the taxpayer on behalf of an employee of the taxpayer as part of an educational assistance program. Provides that the deductions are limited to the first $5,250 of such assistance so furnished to any individual. Effective immediately.
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42	42	LRB104 06505 HLH 16541 b
43	43	A BILL FOR
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68	68	1 this Act to the extent deducted from gross income in
69	69	2 the computation of adjusted gross income for the
70	70	3 taxable year;
71	71	4 (C) An amount equal to the amount received during
72	72	5 the taxable year as a recovery or refund of real
73	73	6 property taxes paid with respect to the taxpayer's
74	74	7 principal residence under the Revenue Act of 1939 and
75	75	8 for which a deduction was previously taken under
76	76	9 subparagraph (L) of this paragraph (2) prior to July
77	77	10 1, 1991, the retrospective application date of Article
78	78	11 4 of Public Act 87-17. In the case of multi-unit or
79	79	12 multi-use structures and farm dwellings, the taxes on
80	80	13 the taxpayer's principal residence shall be that
81	81	14 portion of the total taxes for the entire property
82	82	15 which is attributable to such principal residence;
83	83	16 (D) An amount equal to the amount of the capital
84	84	17 gain deduction allowable under the Internal Revenue
85	85	18 Code, to the extent deducted from gross income in the
86	86	19 computation of adjusted gross income;
87	87	20 (D-5) An amount, to the extent not included in
88	88	21 adjusted gross income, equal to the amount of money
89	89	22 withdrawn by the taxpayer in the taxable year from a
90	90	23 medical care savings account and the interest earned
91	91	24 on the account in the taxable year of a withdrawal
92	92	25 pursuant to subsection (b) of Section 20 of the
93	93	26 Medical Care Savings Account Act or subsection (b) of
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104	104	1 Section 20 of the Medical Care Savings Account Act of
105	105	2 2000;
106	106	3 (D-10) For taxable years ending after December 31,
107	107	4 1997, an amount equal to any eligible remediation
108	108	5 costs that the individual deducted in computing
109	109	6 adjusted gross income and for which the individual
110	110	7 claims a credit under subsection (l) of Section 201;
111	111	8 (D-15) For taxable years 2001 and thereafter, an
112	112	9 amount equal to the bonus depreciation deduction taken
113	113	10 on the taxpayer's federal income tax return for the
114	114	11 taxable year under subsection (k) of Section 168 of
115	115	12 the Internal Revenue Code;
116	116	13 (D-16) If the taxpayer sells, transfers, abandons,
117	117	14 or otherwise disposes of property for which the
118	118	15 taxpayer was required in any taxable year to make an
119	119	16 addition modification under subparagraph (D-15), then
120	120	17 an amount equal to the aggregate amount of the
121	121	18 deductions taken in all taxable years under
122	122	19 subparagraph (Z) with respect to that property.
123	123	20 If the taxpayer continues to own property through
124	124	21 the last day of the last tax year for which a
125	125	22 subtraction is allowed with respect to that property
126	126	23 under subparagraph (Z) and for which the taxpayer was
127	127	24 allowed in any taxable year to make a subtraction
128	128	25 modification under subparagraph (Z), then an amount
129	129	26 equal to that subtraction modification.
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140	140	1 The taxpayer is required to make the addition
141	141	2 modification under this subparagraph only once with
142	142	3 respect to any one piece of property;
143	143	4 (D-17) An amount equal to the amount otherwise
144	144	5 allowed as a deduction in computing base income for
145	145	6 interest paid, accrued, or incurred, directly or
146	146	7 indirectly, (i) for taxable years ending on or after
147	147	8 December 31, 2004, to a foreign person who would be a
148	148	9 member of the same unitary business group but for the
149	149	10 fact that foreign person's business activity outside
150	150	11 the United States is 80% or more of the foreign
151	151	12 person's total business activity and (ii) for taxable
152	152	13 years ending on or after December 31, 2008, to a person
153	153	14 who would be a member of the same unitary business
154	154	15 group but for the fact that the person is prohibited
155	155	16 under Section 1501(a)(27) from being included in the
156	156	17 unitary business group because he or she is ordinarily
157	157	18 required to apportion business income under different
158	158	19 subsections of Section 304. The addition modification
159	159	20 required by this subparagraph shall be reduced to the
160	160	21 extent that dividends were included in base income of
161	161	22 the unitary group for the same taxable year and
162	162	23 received by the taxpayer or by a member of the
163	163	24 taxpayer's unitary business group (including amounts
164	164	25 included in gross income under Sections 951 through
165	165	26 964 of the Internal Revenue Code and amounts included
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176	176	1 in gross income under Section 78 of the Internal
177	177	2 Revenue Code) with respect to the stock of the same
178	178	3 person to whom the interest was paid, accrued, or
179	179	4 incurred.
180	180	5 This paragraph shall not apply to the following:
181	181	6 (i) an item of interest paid, accrued, or
182	182	7 incurred, directly or indirectly, to a person who
183	183	8 is subject in a foreign country or state, other
184	184	9 than a state which requires mandatory unitary
185	185	10 reporting, to a tax on or measured by net income
186	186	11 with respect to such interest; or
187	187	12 (ii) an item of interest paid, accrued, or
188	188	13 incurred, directly or indirectly, to a person if
189	189	14 the taxpayer can establish, based on a
190	190	15 preponderance of the evidence, both of the
191	191	16 following:
192	192	17 (a) the person, during the same taxable
193	193	18 year, paid, accrued, or incurred, the interest
194	194	19 to a person that is not a related member, and
195	195	20 (b) the transaction giving rise to the
196	196	21 interest expense between the taxpayer and the
197	197	22 person did not have as a principal purpose the
198	198	23 avoidance of Illinois income tax, and is paid
199	199	24 pursuant to a contract or agreement that
200	200	25 reflects an arm's-length interest rate and
201	201	26 terms; or
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212	212	1 (iii) the taxpayer can establish, based on
213	213	2 clear and convincing evidence, that the interest
214	214	3 paid, accrued, or incurred relates to a contract
215	215	4 or agreement entered into at arm's-length rates
216	216	5 and terms and the principal purpose for the
217	217	6 payment is not federal or Illinois tax avoidance;
218	218	7 or
219	219	8 (iv) an item of interest paid, accrued, or
220	220	9 incurred, directly or indirectly, to a person if
221	221	10 the taxpayer establishes by clear and convincing
222	222	11 evidence that the adjustments are unreasonable; or
223	223	12 if the taxpayer and the Director agree in writing
224	224	13 to the application or use of an alternative method
225	225	14 of apportionment under Section 304(f).
226	226	15 Nothing in this subsection shall preclude the
227	227	16 Director from making any other adjustment
228	228	17 otherwise allowed under Section 404 of this Act
229	229	18 for any tax year beginning after the effective
230	230	19 date of this amendment provided such adjustment is
231	231	20 made pursuant to regulation adopted by the
232	232	21 Department and such regulations provide methods
233	233	22 and standards by which the Department will utilize
234	234	23 its authority under Section 404 of this Act;
235	235	24 (D-18) An amount equal to the amount of intangible
236	236	25 expenses and costs otherwise allowed as a deduction in
237	237	26 computing base income, and that were paid, accrued, or
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248	248	1 incurred, directly or indirectly, (i) for taxable
249	249	2 years ending on or after December 31, 2004, to a
250	250	3 foreign person who would be a member of the same
251	251	4 unitary business group but for the fact that the
252	252	5 foreign person's business activity outside the United
253	253	6 States is 80% or more of that person's total business
254	254	7 activity and (ii) for taxable years ending on or after
255	255	8 December 31, 2008, to a person who would be a member of
256	256	9 the same unitary business group but for the fact that
257	257	10 the person is prohibited under Section 1501(a)(27)
258	258	11 from being included in the unitary business group
259	259	12 because he or she is ordinarily required to apportion
260	260	13 business income under different subsections of Section
261	261	14 304. The addition modification required by this
262	262	15 subparagraph shall be reduced to the extent that
263	263	16 dividends were included in base income of the unitary
264	264	17 group for the same taxable year and received by the
265	265	18 taxpayer or by a member of the taxpayer's unitary
266	266	19 business group (including amounts included in gross
267	267	20 income under Sections 951 through 964 of the Internal
268	268	21 Revenue Code and amounts included in gross income
269	269	22 under Section 78 of the Internal Revenue Code) with
270	270	23 respect to the stock of the same person to whom the
271	271	24 intangible expenses and costs were directly or
272	272	25 indirectly paid, incurred, or accrued. The preceding
273	273	26 sentence does not apply to the extent that the same
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284	284	1 dividends caused a reduction to the addition
285	285	2 modification required under Section 203(a)(2)(D-17) of
286	286	3 this Act. As used in this subparagraph, the term
287	287	4 "intangible expenses and costs" includes (1) expenses,
288	288	5 losses, and costs for, or related to, the direct or
289	289	6 indirect acquisition, use, maintenance or management,
290	290	7 ownership, sale, exchange, or any other disposition of
291	291	8 intangible property; (2) losses incurred, directly or
292	292	9 indirectly, from factoring transactions or discounting
293	293	10 transactions; (3) royalty, patent, technical, and
294	294	11 copyright fees; (4) licensing fees; and (5) other
295	295	12 similar expenses and costs. For purposes of this
296	296	13 subparagraph, "intangible property" includes patents,
297	297	14 patent applications, trade names, trademarks, service
298	298	15 marks, copyrights, mask works, trade secrets, and
299	299	16 similar types of intangible assets.
300	300	17 This paragraph shall not apply to the following:
301	301	18 (i) any item of intangible expenses or costs
302	302	19 paid, accrued, or incurred, directly or
303	303	20 indirectly, from a transaction with a person who
304	304	21 is subject in a foreign country or state, other
305	305	22 than a state which requires mandatory unitary
306	306	23 reporting, to a tax on or measured by net income
307	307	24 with respect to such item; or
308	308	25 (ii) any item of intangible expense or cost
309	309	26 paid, accrued, or incurred, directly or
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320	320	1 indirectly, if the taxpayer can establish, based
321	321	2 on a preponderance of the evidence, both of the
322	322	3 following:
323	323	4 (a) the person during the same taxable
324	324	5 year paid, accrued, or incurred, the
325	325	6 intangible expense or cost to a person that is
326	326	7 not a related member, and
327	327	8 (b) the transaction giving rise to the
328	328	9 intangible expense or cost between the
329	329	10 taxpayer and the person did not have as a
330	330	11 principal purpose the avoidance of Illinois
331	331	12 income tax, and is paid pursuant to a contract
332	332	13 or agreement that reflects arm's-length terms;
333	333	14 or
334	334	15 (iii) any item of intangible expense or cost
335	335	16 paid, accrued, or incurred, directly or
336	336	17 indirectly, from a transaction with a person if
337	337	18 the taxpayer establishes by clear and convincing
338	338	19 evidence, that the adjustments are unreasonable;
339	339	20 or if the taxpayer and the Director agree in
340	340	21 writing to the application or use of an
341	341	22 alternative method of apportionment under Section
342	342	23 304(f);
343	343	24 Nothing in this subsection shall preclude the
344	344	25 Director from making any other adjustment
345	345	26 otherwise allowed under Section 404 of this Act
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356	356	1 for any tax year beginning after the effective
357	357	2 date of this amendment provided such adjustment is
358	358	3 made pursuant to regulation adopted by the
359	359	4 Department and such regulations provide methods
360	360	5 and standards by which the Department will utilize
361	361	6 its authority under Section 404 of this Act;
362	362	7 (D-19) For taxable years ending on or after
363	363	8 December 31, 2008, an amount equal to the amount of
364	364	9 insurance premium expenses and costs otherwise allowed
365	365	10 as a deduction in computing base income, and that were
366	366	11 paid, accrued, or incurred, directly or indirectly, to
367	367	12 a person who would be a member of the same unitary
368	368	13 business group but for the fact that the person is
369	369	14 prohibited under Section 1501(a)(27) from being
370	370	15 included in the unitary business group because he or
371	371	16 she is ordinarily required to apportion business
372	372	17 income under different subsections of Section 304. The
373	373	18 addition modification required by this subparagraph
374	374	19 shall be reduced to the extent that dividends were
375	375	20 included in base income of the unitary group for the
376	376	21 same taxable year and received by the taxpayer or by a
377	377	22 member of the taxpayer's unitary business group
378	378	23 (including amounts included in gross income under
379	379	24 Sections 951 through 964 of the Internal Revenue Code
380	380	25 and amounts included in gross income under Section 78
381	381	26 of the Internal Revenue Code) with respect to the
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392	392	1 stock of the same person to whom the premiums and costs
393	393	2 were directly or indirectly paid, incurred, or
394	394	3 accrued. The preceding sentence does not apply to the
395	395	4 extent that the same dividends caused a reduction to
396	396	5 the addition modification required under Section
397	397	6 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
398	398	7 Act;
399	399	8 (D-20) For taxable years beginning on or after
400	400	9 January 1, 2002 and ending on or before December 31,
401	401	10 2006, in the case of a distribution from a qualified
402	402	11 tuition program under Section 529 of the Internal
403	403	12 Revenue Code, other than (i) a distribution from a
404	404	13 College Savings Pool created under Section 16.5 of the
405	405	14 State Treasurer Act or (ii) a distribution from the
406	406	15 Illinois Prepaid Tuition Trust Fund, an amount equal
407	407	16 to the amount excluded from gross income under Section
408	408	17 529(c)(3)(B). For taxable years beginning on or after
409	409	18 January 1, 2007, in the case of a distribution from a
410	410	19 qualified tuition program under Section 529 of the
411	411	20 Internal Revenue Code, other than (i) a distribution
412	412	21 from a College Savings Pool created under Section 16.5
413	413	22 of the State Treasurer Act, (ii) a distribution from
414	414	23 the Illinois Prepaid Tuition Trust Fund, or (iii) a
415	415	24 distribution from a qualified tuition program under
416	416	25 Section 529 of the Internal Revenue Code that (I)
417	417	26 adopts and determines that its offering materials
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428	428	1 comply with the College Savings Plans Network's
429	429	2 disclosure principles and (II) has made reasonable
430	430	3 efforts to inform in-state residents of the existence
431	431	4 of in-state qualified tuition programs by informing
432	432	5 Illinois residents directly and, where applicable, to
433	433	6 inform financial intermediaries distributing the
434	434	7 program to inform in-state residents of the existence
435	435	8 of in-state qualified tuition programs at least
436	436	9 annually, an amount equal to the amount excluded from
437	437	10 gross income under Section 529(c)(3)(B).
438	438	11 For the purposes of this subparagraph (D-20), a
439	439	12 qualified tuition program has made reasonable efforts
440	440	13 if it makes disclosures (which may use the term
441	441	14 "in-state program" or "in-state plan" and need not
442	442	15 specifically refer to Illinois or its qualified
443	443	16 programs by name) (i) directly to prospective
444	444	17 participants in its offering materials or makes a
445	445	18 public disclosure, such as a website posting; and (ii)
446	446	19 where applicable, to intermediaries selling the
447	447	20 out-of-state program in the same manner that the
448	448	21 out-of-state program distributes its offering
449	449	22 materials;
450	450	23 (D-20.5) For taxable years beginning on or after
451	451	24 January 1, 2018, in the case of a distribution from a
452	452	25 qualified ABLE program under Section 529A of the
453	453	26 Internal Revenue Code, other than a distribution from
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464	464	1 a qualified ABLE program created under Section 16.6 of
465	465	2 the State Treasurer Act, an amount equal to the amount
466	466	3 excluded from gross income under Section 529A(c)(1)(B)
467	467	4 of the Internal Revenue Code;
468	468	5 (D-21) For taxable years beginning on or after
469	469	6 January 1, 2007, in the case of transfer of moneys from
470	470	7 a qualified tuition program under Section 529 of the
471	471	8 Internal Revenue Code that is administered by the
472	472	9 State to an out-of-state program, an amount equal to
473	473	10 the amount of moneys previously deducted from base
474	474	11 income under subsection (a)(2)(Y) of this Section;
475	475	12 (D-21.5) For taxable years beginning on or after
476	476	13 January 1, 2018, in the case of the transfer of moneys
477	477	14 from a qualified tuition program under Section 529 or
478	478	15 a qualified ABLE program under Section 529A of the
479	479	16 Internal Revenue Code that is administered by this
480	480	17 State to an ABLE account established under an
481	481	18 out-of-state ABLE account program, an amount equal to
482	482	19 the contribution component of the transferred amount
483	483	20 that was previously deducted from base income under
484	484	21 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
485	485	22 Section;
486	486	23 (D-22) For taxable years beginning on or after
487	487	24 January 1, 2009, and prior to January 1, 2018, in the
488	488	25 case of a nonqualified withdrawal or refund of moneys
489	489	26 from a qualified tuition program under Section 529 of
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500	500	1 the Internal Revenue Code administered by the State
501	501	2 that is not used for qualified expenses at an eligible
502	502	3 education institution, an amount equal to the
503	503	4 contribution component of the nonqualified withdrawal
504	504	5 or refund that was previously deducted from base
505	505	6 income under subsection (a)(2)(y) of this Section,
506	506	7 provided that the withdrawal or refund did not result
507	507	8 from the beneficiary's death or disability. For
508	508	9 taxable years beginning on or after January 1, 2018:
509	509	10 (1) in the case of a nonqualified withdrawal or
510	510	11 refund, as defined under Section 16.5 of the State
511	511	12 Treasurer Act, of moneys from a qualified tuition
512	512	13 program under Section 529 of the Internal Revenue Code
513	513	14 administered by the State, an amount equal to the
514	514	15 contribution component of the nonqualified withdrawal
515	515	16 or refund that was previously deducted from base
516	516	17 income under subsection (a)(2)(Y) of this Section, and
517	517	18 (2) in the case of a nonqualified withdrawal or refund
518	518	19 from a qualified ABLE program under Section 529A of
519	519	20 the Internal Revenue Code administered by the State
520	520	21 that is not used for qualified disability expenses, an
521	521	22 amount equal to the contribution component of the
522	522	23 nonqualified withdrawal or refund that was previously
523	523	24 deducted from base income under subsection (a)(2)(HH)
524	524	25 of this Section;
525	525	26 (D-23) An amount equal to the credit allowable to
526	526
527	527
528	528
529	529
530	530
531	531	HB1573 - 14 - LRB104 06505 HLH 16541 b
532	532
533	533
534	534	HB1573- 15 -LRB104 06505 HLH 16541 b HB1573 - 15 - LRB104 06505 HLH 16541 b
535	535	HB1573 - 15 - LRB104 06505 HLH 16541 b
536	536	1 the taxpayer under Section 218(a) of this Act,
537	537	2 determined without regard to Section 218(c) of this
538	538	3 Act;
539	539	4 (D-24) For taxable years ending on or after
540	540	5 December 31, 2017, an amount equal to the deduction
541	541	6 allowed under Section 199 of the Internal Revenue Code
542	542	7 for the taxable year;
543	543	8 (D-25) In the case of a resident, an amount equal
544	544	9 to the amount of tax for which a credit is allowed
545	545	10 pursuant to Section 201(p)(7) of this Act;
546	546	11 and by deducting from the total so obtained the sum of the
547	547	12 following amounts:
548	548	13 (E) For taxable years ending before December 31,
549	549	14 2001, any amount included in such total in respect of
550	550	15 any compensation (including but not limited to any
551	551	16 compensation paid or accrued to a serviceman while a
552	552	17 prisoner of war or missing in action) paid to a
553	553	18 resident by reason of being on active duty in the Armed
554	554	19 Forces of the United States and in respect of any
555	555	20 compensation paid or accrued to a resident who as a
556	556	21 governmental employee was a prisoner of war or missing
557	557	22 in action, and in respect of any compensation paid to a
558	558	23 resident in 1971 or thereafter for annual training
559	559	24 performed pursuant to Sections 502 and 503, Title 32,
560	560	25 United States Code as a member of the Illinois
561	561	26 National Guard or, beginning with taxable years ending
562	562
563	563
564	564
565	565
566	566
567	567	HB1573 - 15 - LRB104 06505 HLH 16541 b
568	568
569	569
570	570	HB1573- 16 -LRB104 06505 HLH 16541 b HB1573 - 16 - LRB104 06505 HLH 16541 b
571	571	HB1573 - 16 - LRB104 06505 HLH 16541 b
572	572	1 on or after December 31, 2007, the National Guard of
573	573	2 any other state. For taxable years ending on or after
574	574	3 December 31, 2001, any amount included in such total
575	575	4 in respect of any compensation (including but not
576	576	5 limited to any compensation paid or accrued to a
577	577	6 serviceman while a prisoner of war or missing in
578	578	7 action) paid to a resident by reason of being a member
579	579	8 of any component of the Armed Forces of the United
580	580	9 States and in respect of any compensation paid or
581	581	10 accrued to a resident who as a governmental employee
582	582	11 was a prisoner of war or missing in action, and in
583	583	12 respect of any compensation paid to a resident in 2001
584	584	13 or thereafter by reason of being a member of the
585	585	14 Illinois National Guard or, beginning with taxable
586	586	15 years ending on or after December 31, 2007, the
587	587	16 National Guard of any other state. The provisions of
588	588	17 this subparagraph (E) are exempt from the provisions
589	589	18 of Section 250;
590	590	19 (F) An amount equal to all amounts included in
591	591	20 such total pursuant to the provisions of Sections
592	592	21 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
593	593	22 408 of the Internal Revenue Code, or included in such
594	594	23 total as distributions under the provisions of any
595	595	24 retirement or disability plan for employees of any
596	596	25 governmental agency or unit, or retirement payments to
597	597	26 retired partners, which payments are excluded in
598	598
599	599
600	600
601	601
602	602
603	603	HB1573 - 16 - LRB104 06505 HLH 16541 b
604	604
605	605
606	606	HB1573- 17 -LRB104 06505 HLH 16541 b HB1573 - 17 - LRB104 06505 HLH 16541 b
607	607	HB1573 - 17 - LRB104 06505 HLH 16541 b
608	608	1 computing net earnings from self employment by Section
609	609	2 1402 of the Internal Revenue Code and regulations
610	610	3 adopted pursuant thereto;
611	611	4 (G) The valuation limitation amount;
612	612	5 (H) An amount equal to the amount of any tax
613	613	6 imposed by this Act which was refunded to the taxpayer
614	614	7 and included in such total for the taxable year;
615	615	8 (I) An amount equal to all amounts included in
616	616	9 such total pursuant to the provisions of Section 111
617	617	10 of the Internal Revenue Code as a recovery of items
618	618	11 previously deducted from adjusted gross income in the
619	619	12 computation of taxable income;
620	620	13 (J) An amount equal to those dividends included in
621	621	14 such total which were paid by a corporation which
622	622	15 conducts business operations in a River Edge
623	623	16 Redevelopment Zone or zones created under the River
624	624	17 Edge Redevelopment Zone Act, and conducts
625	625	18 substantially all of its operations in a River Edge
626	626	19 Redevelopment Zone or zones. This subparagraph (J) is
627	627	20 exempt from the provisions of Section 250;
628	628	21 (K) An amount equal to those dividends included in
629	629	22 such total that were paid by a corporation that
630	630	23 conducts business operations in a federally designated
631	631	24 Foreign Trade Zone or Sub-Zone and that is designated
632	632	25 a High Impact Business located in Illinois; provided
633	633	26 that dividends eligible for the deduction provided in
634	634
635	635
636	636
637	637
638	638
639	639	HB1573 - 17 - LRB104 06505 HLH 16541 b
640	640
641	641
642	642	HB1573- 18 -LRB104 06505 HLH 16541 b HB1573 - 18 - LRB104 06505 HLH 16541 b
643	643	HB1573 - 18 - LRB104 06505 HLH 16541 b
644	644	1 subparagraph (J) of paragraph (2) of this subsection
645	645	2 shall not be eligible for the deduction provided under
646	646	3 this subparagraph (K);
647	647	4 (L) For taxable years ending after December 31,
648	648	5 1983, an amount equal to all social security benefits
649	649	6 and railroad retirement benefits included in such
650	650	7 total pursuant to Sections 72(r) and 86 of the
651	651	8 Internal Revenue Code;
652	652	9 (M) With the exception of any amounts subtracted
653	653	10 under subparagraph (N), an amount equal to the sum of
654	654	11 all amounts disallowed as deductions by (i) Sections
655	655	12 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
656	656	13 and all amounts of expenses allocable to interest and
657	657	14 disallowed as deductions by Section 265(a)(1) of the
658	658	15 Internal Revenue Code; and (ii) for taxable years
659	659	16 ending on or after August 13, 1999, Sections
660	660	17 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
661	661	18 Internal Revenue Code, plus, for taxable years ending
662	662	19 on or after December 31, 2011, Section 45G(e)(3) of
663	663	20 the Internal Revenue Code and, for taxable years
664	664	21 ending on or after December 31, 2008, any amount
665	665	22 included in gross income under Section 87 of the
666	666	23 Internal Revenue Code; the provisions of this
667	667	24 subparagraph are exempt from the provisions of Section
668	668	25 250;
669	669	26 (N) An amount equal to all amounts included in
670	670
671	671
672	672
673	673
674	674
675	675	HB1573 - 18 - LRB104 06505 HLH 16541 b
676	676
677	677
678	678	HB1573- 19 -LRB104 06505 HLH 16541 b HB1573 - 19 - LRB104 06505 HLH 16541 b
679	679	HB1573 - 19 - LRB104 06505 HLH 16541 b
680	680	1 such total which are exempt from taxation by this
681	681	2 State either by reason of its statutes or Constitution
682	682	3 or by reason of the Constitution, treaties or statutes
683	683	4 of the United States; provided that, in the case of any
684	684	5 statute of this State that exempts income derived from
685	685	6 bonds or other obligations from the tax imposed under
686	686	7 this Act, the amount exempted shall be the interest
687	687	8 net of bond premium amortization;
688	688	9 (O) An amount equal to any contribution made to a
689	689	10 job training project established pursuant to the Tax
690	690	11 Increment Allocation Redevelopment Act;
691	691	12 (P) An amount equal to the amount of the deduction
692	692	13 used to compute the federal income tax credit for
693	693	14 restoration of substantial amounts held under claim of
694	694	15 right for the taxable year pursuant to Section 1341 of
695	695	16 the Internal Revenue Code or of any itemized deduction
696	696	17 taken from adjusted gross income in the computation of
697	697	18 taxable income for restoration of substantial amounts
698	698	19 held under claim of right for the taxable year;
699	699	20 (Q) An amount equal to any amounts included in
700	700	21 such total, received by the taxpayer as an
701	701	22 acceleration in the payment of life, endowment or
702	702	23 annuity benefits in advance of the time they would
703	703	24 otherwise be payable as an indemnity for a terminal
704	704	25 illness;
705	705	26 (R) An amount equal to the amount of any federal or
706	706
707	707
708	708
709	709
710	710
711	711	HB1573 - 19 - LRB104 06505 HLH 16541 b
712	712
713	713
714	714	HB1573- 20 -LRB104 06505 HLH 16541 b HB1573 - 20 - LRB104 06505 HLH 16541 b
715	715	HB1573 - 20 - LRB104 06505 HLH 16541 b
716	716	1 State bonus paid to veterans of the Persian Gulf War;
717	717	2 (S) An amount, to the extent included in adjusted
718	718	3 gross income, equal to the amount of a contribution
719	719	4 made in the taxable year on behalf of the taxpayer to a
720	720	5 medical care savings account established under the
721	721	6 Medical Care Savings Account Act or the Medical Care
722	722	7 Savings Account Act of 2000 to the extent the
723	723	8 contribution is accepted by the account administrator
724	724	9 as provided in that Act;
725	725	10 (T) An amount, to the extent included in adjusted
726	726	11 gross income, equal to the amount of interest earned
727	727	12 in the taxable year on a medical care savings account
728	728	13 established under the Medical Care Savings Account Act
729	729	14 or the Medical Care Savings Account Act of 2000 on
730	730	15 behalf of the taxpayer, other than interest added
731	731	16 pursuant to item (D-5) of this paragraph (2);
732	732	17 (U) For one taxable year beginning on or after
733	733	18 January 1, 1994, an amount equal to the total amount of
734	734	19 tax imposed and paid under subsections (a) and (b) of
735	735	20 Section 201 of this Act on grant amounts received by
736	736	21 the taxpayer under the Nursing Home Grant Assistance
737	737	22 Act during the taxpayer's taxable years 1992 and 1993;
738	738	23 (V) Beginning with tax years ending on or after
739	739	24 December 31, 1995 and ending with tax years ending on
740	740	25 or before December 31, 2004, an amount equal to the
741	741	26 amount paid by a taxpayer who is a self-employed
742	742
743	743
744	744
745	745
746	746
747	747	HB1573 - 20 - LRB104 06505 HLH 16541 b
748	748
749	749
750	750	HB1573- 21 -LRB104 06505 HLH 16541 b HB1573 - 21 - LRB104 06505 HLH 16541 b
751	751	HB1573 - 21 - LRB104 06505 HLH 16541 b
752	752	1 taxpayer, a partner of a partnership, or a shareholder
753	753	2 in a Subchapter S corporation for health insurance or
754	754	3 long-term care insurance for that taxpayer or that
755	755	4 taxpayer's spouse or dependents, to the extent that
756	756	5 the amount paid for that health insurance or long-term
757	757	6 care insurance may be deducted under Section 213 of
758	758	7 the Internal Revenue Code, has not been deducted on
759	759	8 the federal income tax return of the taxpayer, and
760	760	9 does not exceed the taxable income attributable to
761	761	10 that taxpayer's income, self-employment income, or
762	762	11 Subchapter S corporation income; except that no
763	763	12 deduction shall be allowed under this item (V) if the
764	764	13 taxpayer is eligible to participate in any health
765	765	14 insurance or long-term care insurance plan of an
766	766	15 employer of the taxpayer or the taxpayer's spouse. The
767	767	16 amount of the health insurance and long-term care
768	768	17 insurance subtracted under this item (V) shall be
769	769	18 determined by multiplying total health insurance and
770	770	19 long-term care insurance premiums paid by the taxpayer
771	771	20 times a number that represents the fractional
772	772	21 percentage of eligible medical expenses under Section
773	773	22 213 of the Internal Revenue Code of 1986 not actually
774	774	23 deducted on the taxpayer's federal income tax return;
775	775	24 (W) For taxable years beginning on or after
776	776	25 January 1, 1998, all amounts included in the
777	777	26 taxpayer's federal gross income in the taxable year
778	778
779	779
780	780
781	781
782	782
783	783	HB1573 - 21 - LRB104 06505 HLH 16541 b
784	784
785	785
786	786	HB1573- 22 -LRB104 06505 HLH 16541 b HB1573 - 22 - LRB104 06505 HLH 16541 b
787	787	HB1573 - 22 - LRB104 06505 HLH 16541 b
788	788	1 from amounts converted from a regular IRA to a Roth
789	789	2 IRA. This paragraph is exempt from the provisions of
790	790	3 Section 250;
791	791	4 (X) For taxable year 1999 and thereafter, an
792	792	5 amount equal to the amount of any (i) distributions,
793	793	6 to the extent includible in gross income for federal
794	794	7 income tax purposes, made to the taxpayer because of
795	795	8 his or her status as a victim of persecution for racial
796	796	9 or religious reasons by Nazi Germany or any other Axis
797	797	10 regime or as an heir of the victim and (ii) items of
798	798	11 income, to the extent includible in gross income for
799	799	12 federal income tax purposes, attributable to, derived
800	800	13 from or in any way related to assets stolen from,
801	801	14 hidden from, or otherwise lost to a victim of
802	802	15 persecution for racial or religious reasons by Nazi
803	803	16 Germany or any other Axis regime immediately prior to,
804	804	17 during, and immediately after World War II, including,
805	805	18 but not limited to, interest on the proceeds
806	806	19 receivable as insurance under policies issued to a
807	807	20 victim of persecution for racial or religious reasons
808	808	21 by Nazi Germany or any other Axis regime by European
809	809	22 insurance companies immediately prior to and during
810	810	23 World War II; provided, however, this subtraction from
811	811	24 federal adjusted gross income does not apply to assets
812	812	25 acquired with such assets or with the proceeds from
813	813	26 the sale of such assets; provided, further, this
814	814
815	815
816	816
817	817
818	818
819	819	HB1573 - 22 - LRB104 06505 HLH 16541 b
820	820
821	821
822	822	HB1573- 23 -LRB104 06505 HLH 16541 b HB1573 - 23 - LRB104 06505 HLH 16541 b
823	823	HB1573 - 23 - LRB104 06505 HLH 16541 b
824	824	1 paragraph shall only apply to a taxpayer who was the
825	825	2 first recipient of such assets after their recovery
826	826	3 and who is a victim of persecution for racial or
827	827	4 religious reasons by Nazi Germany or any other Axis
828	828	5 regime or as an heir of the victim. The amount of and
829	829	6 the eligibility for any public assistance, benefit, or
830	830	7 similar entitlement is not affected by the inclusion
831	831	8 of items (i) and (ii) of this paragraph in gross income
832	832	9 for federal income tax purposes. This paragraph is
833	833	10 exempt from the provisions of Section 250;
834	834	11 (Y) For taxable years beginning on or after
835	835	12 January 1, 2002 and ending on or before December 31,
836	836	13 2004, moneys contributed in the taxable year to a
837	837	14 College Savings Pool account under Section 16.5 of the
838	838	15 State Treasurer Act, except that amounts excluded from
839	839	16 gross income under Section 529(c)(3)(C)(i) of the
840	840	17 Internal Revenue Code shall not be considered moneys
841	841	18 contributed under this subparagraph (Y). For taxable
842	842	19 years beginning on or after January 1, 2005, a maximum
843	843	20 of $10,000 contributed in the taxable year to (i) a
844	844	21 College Savings Pool account under Section 16.5 of the
845	845	22 State Treasurer Act or (ii) the Illinois Prepaid
846	846	23 Tuition Trust Fund, except that amounts excluded from
847	847	24 gross income under Section 529(c)(3)(C)(i) of the
848	848	25 Internal Revenue Code shall not be considered moneys
849	849	26 contributed under this subparagraph (Y). For purposes
850	850
851	851
852	852
853	853
854	854
855	855	HB1573 - 23 - LRB104 06505 HLH 16541 b
856	856
857	857
858	858	HB1573- 24 -LRB104 06505 HLH 16541 b HB1573 - 24 - LRB104 06505 HLH 16541 b
859	859	HB1573 - 24 - LRB104 06505 HLH 16541 b
860	860	1 of this subparagraph, contributions made by an
861	861	2 employer on behalf of an employee, or matching
862	862	3 contributions made by an employee, shall be treated as
863	863	4 made by the employee. This subparagraph (Y) is exempt
864	864	5 from the provisions of Section 250;
865	865	6 (Z) For taxable years 2001 and thereafter, for the
866	866	7 taxable year in which the bonus depreciation deduction
867	867	8 is taken on the taxpayer's federal income tax return
868	868	9 under subsection (k) of Section 168 of the Internal
869	869	10 Revenue Code and for each applicable taxable year
870	870	11 thereafter, an amount equal to "x", where:
871	871	12 (1) "y" equals the amount of the depreciation
872	872	13 deduction taken for the taxable year on the
873	873	14 taxpayer's federal income tax return on property
874	874	15 for which the bonus depreciation deduction was
875	875	16 taken in any year under subsection (k) of Section
876	876	17 168 of the Internal Revenue Code, but not
877	877	18 including the bonus depreciation deduction;
878	878	19 (2) for taxable years ending on or before
879	879	20 December 31, 2005, "x" equals "y" multiplied by 30
880	880	21 and then divided by 70 (or "y" multiplied by
881	881	22 0.429); and
882	882	23 (3) for taxable years ending after December
883	883	24 31, 2005:
884	884	25 (i) for property on which a bonus
885	885	26 depreciation deduction of 30% of the adjusted
886	886
887	887
888	888
889	889
890	890
891	891	HB1573 - 24 - LRB104 06505 HLH 16541 b
892	892
893	893
894	894	HB1573- 25 -LRB104 06505 HLH 16541 b HB1573 - 25 - LRB104 06505 HLH 16541 b
895	895	HB1573 - 25 - LRB104 06505 HLH 16541 b
896	896	1 basis was taken, "x" equals "y" multiplied by
897	897	2 30 and then divided by 70 (or "y" multiplied
898	898	3 by 0.429);
899	899	4 (ii) for property on which a bonus
900	900	5 depreciation deduction of 50% of the adjusted
901	901	6 basis was taken, "x" equals "y" multiplied by
902	902	7 1.0;
903	903	8 (iii) for property on which a bonus
904	904	9 depreciation deduction of 100% of the adjusted
905	905	10 basis was taken in a taxable year ending on or
906	906	11 after December 31, 2021, "x" equals the
907	907	12 depreciation deduction that would be allowed
908	908	13 on that property if the taxpayer had made the
909	909	14 election under Section 168(k)(7) of the
910	910	15 Internal Revenue Code to not claim bonus
911	911	16 depreciation on that property; and
912	912	17 (iv) for property on which a bonus
913	913	18 depreciation deduction of a percentage other
914	914	19 than 30%, 50% or 100% of the adjusted basis
915	915	20 was taken in a taxable year ending on or after
916	916	21 December 31, 2021, "x" equals "y" multiplied
917	917	22 by 100 times the percentage bonus depreciation
918	918	23 on the property (that is, 100(bonus%)) and
919	919	24 then divided by 100 times 1 minus the
920	920	25 percentage bonus depreciation on the property
921	921	26 (that is, 100(1-bonus%)).
922	922
923	923
924	924
925	925
926	926
927	927	HB1573 - 25 - LRB104 06505 HLH 16541 b
928	928
929	929
930	930	HB1573- 26 -LRB104 06505 HLH 16541 b HB1573 - 26 - LRB104 06505 HLH 16541 b
931	931	HB1573 - 26 - LRB104 06505 HLH 16541 b
932	932	1 The aggregate amount deducted under this
933	933	2 subparagraph in all taxable years for any one piece of
934	934	3 property may not exceed the amount of the bonus
935	935	4 depreciation deduction taken on that property on the
936	936	5 taxpayer's federal income tax return under subsection
937	937	6 (k) of Section 168 of the Internal Revenue Code. This
938	938	7 subparagraph (Z) is exempt from the provisions of
939	939	8 Section 250;
940	940	9 (AA) If the taxpayer sells, transfers, abandons,
941	941	10 or otherwise disposes of property for which the
942	942	11 taxpayer was required in any taxable year to make an
943	943	12 addition modification under subparagraph (D-15), then
944	944	13 an amount equal to that addition modification.
945	945	14 If the taxpayer continues to own property through
946	946	15 the last day of the last tax year for which a
947	947	16 subtraction is allowed with respect to that property
948	948	17 under subparagraph (Z) and for which the taxpayer was
949	949	18 required in any taxable year to make an addition
950	950	19 modification under subparagraph (D-15), then an amount
951	951	20 equal to that addition modification.
952	952	21 The taxpayer is allowed to take the deduction
953	953	22 under this subparagraph only once with respect to any
954	954	23 one piece of property.
955	955	24 This subparagraph (AA) is exempt from the
956	956	25 provisions of Section 250;
957	957	26 (BB) Any amount included in adjusted gross income,
958	958
959	959
960	960
961	961
962	962
963	963	HB1573 - 26 - LRB104 06505 HLH 16541 b
964	964
965	965
966	966	HB1573- 27 -LRB104 06505 HLH 16541 b HB1573 - 27 - LRB104 06505 HLH 16541 b
967	967	HB1573 - 27 - LRB104 06505 HLH 16541 b
968	968	1 other than salary, received by a driver in a
969	969	2 ridesharing arrangement using a motor vehicle;
970	970	3 (CC) The amount of (i) any interest income (net of
971	971	4 the deductions allocable thereto) taken into account
972	972	5 for the taxable year with respect to a transaction
973	973	6 with a taxpayer that is required to make an addition
974	974	7 modification with respect to such transaction under
975	975	8 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
976	976	9 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
977	977	10 the amount of that addition modification, and (ii) any
978	978	11 income from intangible property (net of the deductions
979	979	12 allocable thereto) taken into account for the taxable
980	980	13 year with respect to a transaction with a taxpayer
981	981	14 that is required to make an addition modification with
982	982	15 respect to such transaction under Section
983	983	16 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
984	984	17 203(d)(2)(D-8), but not to exceed the amount of that
985	985	18 addition modification. This subparagraph (CC) is
986	986	19 exempt from the provisions of Section 250;
987	987	20 (DD) An amount equal to the interest income taken
988	988	21 into account for the taxable year (net of the
989	989	22 deductions allocable thereto) with respect to
990	990	23 transactions with (i) a foreign person who would be a
991	991	24 member of the taxpayer's unitary business group but
992	992	25 for the fact that the foreign person's business
993	993	26 activity outside the United States is 80% or more of
994	994
995	995
996	996
997	997
998	998
999	999	HB1573 - 27 - LRB104 06505 HLH 16541 b
1000	1000
1001	1001
1002	1002	HB1573- 28 -LRB104 06505 HLH 16541 b HB1573 - 28 - LRB104 06505 HLH 16541 b
1003	1003	HB1573 - 28 - LRB104 06505 HLH 16541 b
1004	1004	1 that person's total business activity and (ii) for
1005	1005	2 taxable years ending on or after December 31, 2008, to
1006	1006	3 a person who would be a member of the same unitary
1007	1007	4 business group but for the fact that the person is
1008	1008	5 prohibited under Section 1501(a)(27) from being
1009	1009	6 included in the unitary business group because he or
1010	1010	7 she is ordinarily required to apportion business
1011	1011	8 income under different subsections of Section 304, but
1012	1012	9 not to exceed the addition modification required to be
1013	1013	10 made for the same taxable year under Section
1014	1014	11 203(a)(2)(D-17) for interest paid, accrued, or
1015	1015	12 incurred, directly or indirectly, to the same person.
1016	1016	13 This subparagraph (DD) is exempt from the provisions
1017	1017	14 of Section 250;
1018	1018	15 (EE) An amount equal to the income from intangible
1019	1019	16 property taken into account for the taxable year (net
1020	1020	17 of the deductions allocable thereto) with respect to
1021	1021	18 transactions with (i) a foreign person who would be a
1022	1022	19 member of the taxpayer's unitary business group but
1023	1023	20 for the fact that the foreign person's business
1024	1024	21 activity outside the United States is 80% or more of
1025	1025	22 that person's total business activity and (ii) for
1026	1026	23 taxable years ending on or after December 31, 2008, to
1027	1027	24 a person who would be a member of the same unitary
1028	1028	25 business group but for the fact that the person is
1029	1029	26 prohibited under Section 1501(a)(27) from being
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035	HB1573 - 28 - LRB104 06505 HLH 16541 b
1036	1036
1037	1037
1038	1038	HB1573- 29 -LRB104 06505 HLH 16541 b HB1573 - 29 - LRB104 06505 HLH 16541 b
1039	1039	HB1573 - 29 - LRB104 06505 HLH 16541 b
1040	1040	1 included in the unitary business group because he or
1041	1041	2 she is ordinarily required to apportion business
1042	1042	3 income under different subsections of Section 304, but
1043	1043	4 not to exceed the addition modification required to be
1044	1044	5 made for the same taxable year under Section
1045	1045	6 203(a)(2)(D-18) for intangible expenses and costs
1046	1046	7 paid, accrued, or incurred, directly or indirectly, to
1047	1047	8 the same foreign person. This subparagraph (EE) is
1048	1048	9 exempt from the provisions of Section 250;
1049	1049	10 (FF) An amount equal to any amount awarded to the
1050	1050	11 taxpayer during the taxable year by the Court of
1051	1051	12 Claims under subsection (c) of Section 8 of the Court
1052	1052	13 of Claims Act for time unjustly served in a State
1053	1053	14 prison. This subparagraph (FF) is exempt from the
1054	1054	15 provisions of Section 250;
1055	1055	16 (GG) For taxable years ending on or after December
1056	1056	17 31, 2011, in the case of a taxpayer who was required to
1057	1057	18 add back any insurance premiums under Section
1058	1058	19 203(a)(2)(D-19), such taxpayer may elect to subtract
1059	1059	20 that part of a reimbursement received from the
1060	1060	21 insurance company equal to the amount of the expense
1061	1061	22 or loss (including expenses incurred by the insurance
1062	1062	23 company) that would have been taken into account as a
1063	1063	24 deduction for federal income tax purposes if the
1064	1064	25 expense or loss had been uninsured. If a taxpayer
1065	1065	26 makes the election provided for by this subparagraph
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071	HB1573 - 29 - LRB104 06505 HLH 16541 b
1072	1072
1073	1073
1074	1074	HB1573- 30 -LRB104 06505 HLH 16541 b HB1573 - 30 - LRB104 06505 HLH 16541 b
1075	1075	HB1573 - 30 - LRB104 06505 HLH 16541 b
1076	1076	1 (GG), the insurer to which the premiums were paid must
1077	1077	2 add back to income the amount subtracted by the
1078	1078	3 taxpayer pursuant to this subparagraph (GG). This
1079	1079	4 subparagraph (GG) is exempt from the provisions of
1080	1080	5 Section 250;
1081	1081	6 (HH) For taxable years beginning on or after
1082	1082	7 January 1, 2018 and prior to January 1, 2028, a maximum
1083	1083	8 of $10,000 contributed in the taxable year to a
1084	1084	9 qualified ABLE account under Section 16.6 of the State
1085	1085	10 Treasurer Act, except that amounts excluded from gross
1086	1086	11 income under Section 529(c)(3)(C)(i) or Section
1087	1087	12 529A(c)(1)(C) of the Internal Revenue Code shall not
1088	1088	13 be considered moneys contributed under this
1089	1089	14 subparagraph (HH). For purposes of this subparagraph
1090	1090	15 (HH), contributions made by an employer on behalf of
1091	1091	16 an employee, or matching contributions made by an
1092	1092	17 employee, shall be treated as made by the employee;
1093	1093	18 (II) For taxable years that begin on or after
1094	1094	19 January 1, 2021 and begin before January 1, 2026, the
1095	1095	20 amount that is included in the taxpayer's federal
1096	1096	21 adjusted gross income pursuant to Section 61 of the
1097	1097	22 Internal Revenue Code as discharge of indebtedness
1098	1098	23 attributable to student loan forgiveness and that is
1099	1099	24 not excluded from the taxpayer's federal adjusted
1100	1100	25 gross income pursuant to paragraph (5) of subsection
1101	1101	26 (f) of Section 108 of the Internal Revenue Code;
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107	HB1573 - 30 - LRB104 06505 HLH 16541 b
1108	1108
1109	1109
1110	1110	HB1573- 31 -LRB104 06505 HLH 16541 b HB1573 - 31 - LRB104 06505 HLH 16541 b
1111	1111	HB1573 - 31 - LRB104 06505 HLH 16541 b
1112	1112	1 (JJ) For taxable years beginning on or after
1113	1113	2 January 1, 2023, for any cannabis establishment
1114	1114	3 operating in this State and licensed under the
1115	1115	4 Cannabis Regulation and Tax Act or any cannabis
1116	1116	5 cultivation center or medical cannabis dispensing
1117	1117	6 organization operating in this State and licensed
1118	1118	7 under the Compassionate Use of Medical Cannabis
1119	1119	8 Program Act, an amount equal to the deductions that
1120	1120	9 were disallowed under Section 280E of the Internal
1121	1121	10 Revenue Code for the taxable year and that would not be
1122	1122	11 added back under this subsection. The provisions of
1123	1123	12 this subparagraph (JJ) are exempt from the provisions
1124	1124	13 of Section 250; and
1125	1125	14 (KK) To the extent includible in gross income for
1126	1126	15 federal income tax purposes, any amount awarded or
1127	1127	16 paid to the taxpayer as a result of a judgment or
1128	1128	17 settlement for fertility fraud as provided in Section
1129	1129	18 15 of the Illinois Fertility Fraud Act, donor
1130	1130	19 fertility fraud as provided in Section 20 of the
1131	1131	20 Illinois Fertility Fraud Act, or similar action in
1132	1132	21 another state; and
1133	1133	22 (LL) For taxable years beginning on or after
1134	1134	23 January 1, 2026, if the taxpayer is a qualified
1135	1135	24 worker, as defined in the Workforce Development
1136	1136	25 through Charitable Loan Repayment Act, an amount equal
1137	1137	26 to the amount included in the taxpayer's federal
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142
1143	1143	HB1573 - 31 - LRB104 06505 HLH 16541 b
1144	1144
1145	1145
1146	1146	HB1573- 32 -LRB104 06505 HLH 16541 b HB1573 - 32 - LRB104 06505 HLH 16541 b
1147	1147	HB1573 - 32 - LRB104 06505 HLH 16541 b
1148	1148	1 adjusted gross income that is attributable to student
1149	1149	2 loan repayment assistance received by the taxpayer
1150	1150	3 during the taxable year from a qualified community
1151	1151	4 foundation under the provisions of the Workforce
1152	1152	5 Development through Through Charitable Loan Repayment
1153	1153	6 Act.
1154	1154	7 This subparagraph (LL) is exempt from the
1155	1155	8 provisions of Section 250; and .
1156	1156	9 (MM) (LL) For taxable years beginning on or after
1157	1157	10 January 1, 2025, if the taxpayer is an eligible
1158	1158	11 resident as defined in the Medical Debt Relief Act, an
1159	1159	12 amount equal to the amount included in the taxpayer's
1160	1160	13 federal adjusted gross income that is attributable to
1161	1161	14 medical debt relief received by the taxpayer during
1162	1162	15 the taxable year from a nonprofit medical debt relief
1163	1163	16 coordinator under the provisions of the Medical Debt
1164	1164	17 Relief Act. This subparagraph (MM) (LL) is exempt from
1165	1165	18 the provisions of Section 250.
1166	1166	19 (NN) For taxable years beginning on or after
1167	1167	20 January 1, 2026, any amount paid by the taxpayer's
1168	1168	21 employer on behalf of the taxpayer as part of an
1169	1169	22 educational assistance program, as defined in Section
1170	1170	23 127 of the Internal Revenue Code, regardless of
1171	1171	24 whether those amounts are included in the taxpayer's
1172	1172	25 federal adjusted gross income for the taxable year;
1173	1173	26 the deduction under this subparagraph shall apply only
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178
1179	1179	HB1573 - 32 - LRB104 06505 HLH 16541 b
1180	1180
1181	1181
1182	1182	HB1573- 33 -LRB104 06505 HLH 16541 b HB1573 - 33 - LRB104 06505 HLH 16541 b
1183	1183	HB1573 - 33 - LRB104 06505 HLH 16541 b
1184	1184	1 to the first $5,250 of such assistance so furnished to
1185	1185	2 any individual; this subparagraph is exempt from the
1186	1186	3 provisions of Section 250; and
1187	1187	4 (OO) For taxable years beginning on or after
1188	1188	5 January 1, 2026, amounts paid by the taxpayer on
1189	1189	6 behalf of an employee of the taxpayer as part of an
1190	1190	7 educational assistance program, as defined in Section
1191	1191	8 127 of the Internal Revenue Code; the deduction under
1192	1192	9 this subparagraph shall apply only to the first $5,250
1193	1193	10 of such assistance so furnished to any particular
1194	1194	11 individual; this subparagraph is exempt from the
1195	1195	12 provisions of Section 250.
1196	1196	13 (b) Corporations.
1197	1197	14 (1) In general. In the case of a corporation, base
1198	1198	15 income means an amount equal to the taxpayer's taxable
1199	1199	16 income for the taxable year as modified by paragraph (2).
1200	1200	17 (2) Modifications. The taxable income referred to in
1201	1201	18 paragraph (1) shall be modified by adding thereto the sum
1202	1202	19 of the following amounts:
1203	1203	20 (A) An amount equal to all amounts paid or accrued
1204	1204	21 to the taxpayer as interest and all distributions
1205	1205	22 received from regulated investment companies during
1206	1206	23 the taxable year to the extent excluded from gross
1207	1207	24 income in the computation of taxable income;
1208	1208	25 (B) An amount equal to the amount of tax imposed by
1209	1209
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214	HB1573 - 33 - LRB104 06505 HLH 16541 b
1215	1215
1216	1216
1217	1217	HB1573- 34 -LRB104 06505 HLH 16541 b HB1573 - 34 - LRB104 06505 HLH 16541 b
1218	1218	HB1573 - 34 - LRB104 06505 HLH 16541 b
1219	1219	1 this Act to the extent deducted from gross income in
1220	1220	2 the computation of taxable income for the taxable
1221	1221	3 year;
1222	1222	4 (C) In the case of a regulated investment company,
1223	1223	5 an amount equal to the excess of (i) the net long-term
1224	1224	6 capital gain for the taxable year, over (ii) the
1225	1225	7 amount of the capital gain dividends designated as
1226	1226	8 such in accordance with Section 852(b)(3)(C) of the
1227	1227	9 Internal Revenue Code and any amount designated under
1228	1228	10 Section 852(b)(3)(D) of the Internal Revenue Code,
1229	1229	11 attributable to the taxable year (this amendatory Act
1230	1230	12 of 1995 (Public Act 89-89) is declarative of existing
1231	1231	13 law and is not a new enactment);
1232	1232	14 (D) The amount of any net operating loss deduction
1233	1233	15 taken in arriving at taxable income, other than a net
1234	1234	16 operating loss carried forward from a taxable year
1235	1235	17 ending prior to December 31, 1986;
1236	1236	18 (E) For taxable years in which a net operating
1237	1237	19 loss carryback or carryforward from a taxable year
1238	1238	20 ending prior to December 31, 1986 is an element of
1239	1239	21 taxable income under paragraph (1) of subsection (e)
1240	1240	22 or subparagraph (E) of paragraph (2) of subsection
1241	1241	23 (e), the amount by which addition modifications other
1242	1242	24 than those provided by this subparagraph (E) exceeded
1243	1243	25 subtraction modifications in such earlier taxable
1244	1244	26 year, with the following limitations applied in the
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250	HB1573 - 34 - LRB104 06505 HLH 16541 b
1251	1251
1252	1252
1253	1253	HB1573- 35 -LRB104 06505 HLH 16541 b HB1573 - 35 - LRB104 06505 HLH 16541 b
1254	1254	HB1573 - 35 - LRB104 06505 HLH 16541 b
1255	1255	1 order that they are listed:
1256	1256	2 (i) the addition modification relating to the
1257	1257	3 net operating loss carried back or forward to the
1258	1258	4 taxable year from any taxable year ending prior to
1259	1259	5 December 31, 1986 shall be reduced by the amount
1260	1260	6 of addition modification under this subparagraph
1261	1261	7 (E) which related to that net operating loss and
1262	1262	8 which was taken into account in calculating the
1263	1263	9 base income of an earlier taxable year, and
1264	1264	10 (ii) the addition modification relating to the
1265	1265	11 net operating loss carried back or forward to the
1266	1266	12 taxable year from any taxable year ending prior to
1267	1267	13 December 31, 1986 shall not exceed the amount of
1268	1268	14 such carryback or carryforward;
1269	1269	15 For taxable years in which there is a net
1270	1270	16 operating loss carryback or carryforward from more
1271	1271	17 than one other taxable year ending prior to December
1272	1272	18 31, 1986, the addition modification provided in this
1273	1273	19 subparagraph (E) shall be the sum of the amounts
1274	1274	20 computed independently under the preceding provisions
1275	1275	21 of this subparagraph (E) for each such taxable year;
1276	1276	22 (E-5) For taxable years ending after December 31,
1277	1277	23 1997, an amount equal to any eligible remediation
1278	1278	24 costs that the corporation deducted in computing
1279	1279	25 adjusted gross income and for which the corporation
1280	1280	26 claims a credit under subsection (l) of Section 201;
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286	HB1573 - 35 - LRB104 06505 HLH 16541 b
1287	1287
1288	1288
1289	1289	HB1573- 36 -LRB104 06505 HLH 16541 b HB1573 - 36 - LRB104 06505 HLH 16541 b
1290	1290	HB1573 - 36 - LRB104 06505 HLH 16541 b
1291	1291	1 (E-10) For taxable years 2001 and thereafter, an
1292	1292	2 amount equal to the bonus depreciation deduction taken
1293	1293	3 on the taxpayer's federal income tax return for the
1294	1294	4 taxable year under subsection (k) of Section 168 of
1295	1295	5 the Internal Revenue Code;
1296	1296	6 (E-11) If the taxpayer sells, transfers, abandons,
1297	1297	7 or otherwise disposes of property for which the
1298	1298	8 taxpayer was required in any taxable year to make an
1299	1299	9 addition modification under subparagraph (E-10), then
1300	1300	10 an amount equal to the aggregate amount of the
1301	1301	11 deductions taken in all taxable years under
1302	1302	12 subparagraph (T) with respect to that property.
1303	1303	13 If the taxpayer continues to own property through
1304	1304	14 the last day of the last tax year for which a
1305	1305	15 subtraction is allowed with respect to that property
1306	1306	16 under subparagraph (T) and for which the taxpayer was
1307	1307	17 allowed in any taxable year to make a subtraction
1308	1308	18 modification under subparagraph (T), then an amount
1309	1309	19 equal to that subtraction modification.
1310	1310	20 The taxpayer is required to make the addition
1311	1311	21 modification under this subparagraph only once with
1312	1312	22 respect to any one piece of property;
1313	1313	23 (E-12) An amount equal to the amount otherwise
1314	1314	24 allowed as a deduction in computing base income for
1315	1315	25 interest paid, accrued, or incurred, directly or
1316	1316	26 indirectly, (i) for taxable years ending on or after
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322	HB1573 - 36 - LRB104 06505 HLH 16541 b
1323	1323
1324	1324
1325	1325	HB1573- 37 -LRB104 06505 HLH 16541 b HB1573 - 37 - LRB104 06505 HLH 16541 b
1326	1326	HB1573 - 37 - LRB104 06505 HLH 16541 b
1327	1327	1 December 31, 2004, to a foreign person who would be a
1328	1328	2 member of the same unitary business group but for the
1329	1329	3 fact the foreign person's business activity outside
1330	1330	4 the United States is 80% or more of the foreign
1331	1331	5 person's total business activity and (ii) for taxable
1332	1332	6 years ending on or after December 31, 2008, to a person
1333	1333	7 who would be a member of the same unitary business
1334	1334	8 group but for the fact that the person is prohibited
1335	1335	9 under Section 1501(a)(27) from being included in the
1336	1336	10 unitary business group because he or she is ordinarily
1337	1337	11 required to apportion business income under different
1338	1338	12 subsections of Section 304. The addition modification
1339	1339	13 required by this subparagraph shall be reduced to the
1340	1340	14 extent that dividends were included in base income of
1341	1341	15 the unitary group for the same taxable year and
1342	1342	16 received by the taxpayer or by a member of the
1343	1343	17 taxpayer's unitary business group (including amounts
1344	1344	18 included in gross income pursuant to Sections 951
1345	1345	19 through 964 of the Internal Revenue Code and amounts
1346	1346	20 included in gross income under Section 78 of the
1347	1347	21 Internal Revenue Code) with respect to the stock of
1348	1348	22 the same person to whom the interest was paid,
1349	1349	23 accrued, or incurred.
1350	1350	24 This paragraph shall not apply to the following:
1351	1351	25 (i) an item of interest paid, accrued, or
1352	1352	26 incurred, directly or indirectly, to a person who
1353	1353
1354	1354
1355	1355
1356	1356
1357	1357
1358	1358	HB1573 - 37 - LRB104 06505 HLH 16541 b
1359	1359
1360	1360
1361	1361	HB1573- 38 -LRB104 06505 HLH 16541 b HB1573 - 38 - LRB104 06505 HLH 16541 b
1362	1362	HB1573 - 38 - LRB104 06505 HLH 16541 b
1363	1363	1 is subject in a foreign country or state, other
1364	1364	2 than a state which requires mandatory unitary
1365	1365	3 reporting, to a tax on or measured by net income
1366	1366	4 with respect to such interest; or
1367	1367	5 (ii) an item of interest paid, accrued, or
1368	1368	6 incurred, directly or indirectly, to a person if
1369	1369	7 the taxpayer can establish, based on a
1370	1370	8 preponderance of the evidence, both of the
1371	1371	9 following:
1372	1372	10 (a) the person, during the same taxable
1373	1373	11 year, paid, accrued, or incurred, the interest
1374	1374	12 to a person that is not a related member, and
1375	1375	13 (b) the transaction giving rise to the
1376	1376	14 interest expense between the taxpayer and the
1377	1377	15 person did not have as a principal purpose the
1378	1378	16 avoidance of Illinois income tax, and is paid
1379	1379	17 pursuant to a contract or agreement that
1380	1380	18 reflects an arm's-length interest rate and
1381	1381	19 terms; or
1382	1382	20 (iii) the taxpayer can establish, based on
1383	1383	21 clear and convincing evidence, that the interest
1384	1384	22 paid, accrued, or incurred relates to a contract
1385	1385	23 or agreement entered into at arm's-length rates
1386	1386	24 and terms and the principal purpose for the
1387	1387	25 payment is not federal or Illinois tax avoidance;
1388	1388	26 or
1389	1389
1390	1390
1391	1391
1392	1392
1393	1393
1394	1394	HB1573 - 38 - LRB104 06505 HLH 16541 b
1395	1395
1396	1396
1397	1397	HB1573- 39 -LRB104 06505 HLH 16541 b HB1573 - 39 - LRB104 06505 HLH 16541 b
1398	1398	HB1573 - 39 - LRB104 06505 HLH 16541 b
1399	1399	1 (iv) an item of interest paid, accrued, or
1400	1400	2 incurred, directly or indirectly, to a person if
1401	1401	3 the taxpayer establishes by clear and convincing
1402	1402	4 evidence that the adjustments are unreasonable; or
1403	1403	5 if the taxpayer and the Director agree in writing
1404	1404	6 to the application or use of an alternative method
1405	1405	7 of apportionment under Section 304(f).
1406	1406	8 Nothing in this subsection shall preclude the
1407	1407	9 Director from making any other adjustment
1408	1408	10 otherwise allowed under Section 404 of this Act
1409	1409	11 for any tax year beginning after the effective
1410	1410	12 date of this amendment provided such adjustment is
1411	1411	13 made pursuant to regulation adopted by the
1412	1412	14 Department and such regulations provide methods
1413	1413	15 and standards by which the Department will utilize
1414	1414	16 its authority under Section 404 of this Act;
1415	1415	17 (E-13) An amount equal to the amount of intangible
1416	1416	18 expenses and costs otherwise allowed as a deduction in
1417	1417	19 computing base income, and that were paid, accrued, or
1418	1418	20 incurred, directly or indirectly, (i) for taxable
1419	1419	21 years ending on or after December 31, 2004, to a
1420	1420	22 foreign person who would be a member of the same
1421	1421	23 unitary business group but for the fact that the
1422	1422	24 foreign person's business activity outside the United
1423	1423	25 States is 80% or more of that person's total business
1424	1424	26 activity and (ii) for taxable years ending on or after
1425	1425
1426	1426
1427	1427
1428	1428
1429	1429
1430	1430	HB1573 - 39 - LRB104 06505 HLH 16541 b
1431	1431
1432	1432
1433	1433	HB1573- 40 -LRB104 06505 HLH 16541 b HB1573 - 40 - LRB104 06505 HLH 16541 b
1434	1434	HB1573 - 40 - LRB104 06505 HLH 16541 b
1435	1435	1 December 31, 2008, to a person who would be a member of
1436	1436	2 the same unitary business group but for the fact that
1437	1437	3 the person is prohibited under Section 1501(a)(27)
1438	1438	4 from being included in the unitary business group
1439	1439	5 because he or she is ordinarily required to apportion
1440	1440	6 business income under different subsections of Section
1441	1441	7 304. The addition modification required by this
1442	1442	8 subparagraph shall be reduced to the extent that
1443	1443	9 dividends were included in base income of the unitary
1444	1444	10 group for the same taxable year and received by the
1445	1445	11 taxpayer or by a member of the taxpayer's unitary
1446	1446	12 business group (including amounts included in gross
1447	1447	13 income pursuant to Sections 951 through 964 of the
1448	1448	14 Internal Revenue Code and amounts included in gross
1449	1449	15 income under Section 78 of the Internal Revenue Code)
1450	1450	16 with respect to the stock of the same person to whom
1451	1451	17 the intangible expenses and costs were directly or
1452	1452	18 indirectly paid, incurred, or accrued. The preceding
1453	1453	19 sentence shall not apply to the extent that the same
1454	1454	20 dividends caused a reduction to the addition
1455	1455	21 modification required under Section 203(b)(2)(E-12) of
1456	1456	22 this Act. As used in this subparagraph, the term
1457	1457	23 "intangible expenses and costs" includes (1) expenses,
1458	1458	24 losses, and costs for, or related to, the direct or
1459	1459	25 indirect acquisition, use, maintenance or management,
1460	1460	26 ownership, sale, exchange, or any other disposition of
1461	1461
1462	1462
1463	1463
1464	1464
1465	1465
1466	1466	HB1573 - 40 - LRB104 06505 HLH 16541 b
1467	1467
1468	1468
1469	1469	HB1573- 41 -LRB104 06505 HLH 16541 b HB1573 - 41 - LRB104 06505 HLH 16541 b
1470	1470	HB1573 - 41 - LRB104 06505 HLH 16541 b
1471	1471	1 intangible property; (2) losses incurred, directly or
1472	1472	2 indirectly, from factoring transactions or discounting
1473	1473	3 transactions; (3) royalty, patent, technical, and
1474	1474	4 copyright fees; (4) licensing fees; and (5) other
1475	1475	5 similar expenses and costs. For purposes of this
1476	1476	6 subparagraph, "intangible property" includes patents,
1477	1477	7 patent applications, trade names, trademarks, service
1478	1478	8 marks, copyrights, mask works, trade secrets, and
1479	1479	9 similar types of intangible assets.
1480	1480	10 This paragraph shall not apply to the following:
1481	1481	11 (i) any item of intangible expenses or costs
1482	1482	12 paid, accrued, or incurred, directly or
1483	1483	13 indirectly, from a transaction with a person who
1484	1484	14 is subject in a foreign country or state, other
1485	1485	15 than a state which requires mandatory unitary
1486	1486	16 reporting, to a tax on or measured by net income
1487	1487	17 with respect to such item; or
1488	1488	18 (ii) any item of intangible expense or cost
1489	1489	19 paid, accrued, or incurred, directly or
1490	1490	20 indirectly, if the taxpayer can establish, based
1491	1491	21 on a preponderance of the evidence, both of the
1492	1492	22 following:
1493	1493	23 (a) the person during the same taxable
1494	1494	24 year paid, accrued, or incurred, the
1495	1495	25 intangible expense or cost to a person that is
1496	1496	26 not a related member, and
1497	1497
1498	1498
1499	1499
1500	1500
1501	1501
1502	1502	HB1573 - 41 - LRB104 06505 HLH 16541 b
1503	1503
1504	1504
1505	1505	HB1573- 42 -LRB104 06505 HLH 16541 b HB1573 - 42 - LRB104 06505 HLH 16541 b
1506	1506	HB1573 - 42 - LRB104 06505 HLH 16541 b
1507	1507	1 (b) the transaction giving rise to the
1508	1508	2 intangible expense or cost between the
1509	1509	3 taxpayer and the person did not have as a
1510	1510	4 principal purpose the avoidance of Illinois
1511	1511	5 income tax, and is paid pursuant to a contract
1512	1512	6 or agreement that reflects arm's-length terms;
1513	1513	7 or
1514	1514	8 (iii) any item of intangible expense or cost
1515	1515	9 paid, accrued, or incurred, directly or
1516	1516	10 indirectly, from a transaction with a person if
1517	1517	11 the taxpayer establishes by clear and convincing
1518	1518	12 evidence, that the adjustments are unreasonable;
1519	1519	13 or if the taxpayer and the Director agree in
1520	1520	14 writing to the application or use of an
1521	1521	15 alternative method of apportionment under Section
1522	1522	16 304(f);
1523	1523	17 Nothing in this subsection shall preclude the
1524	1524	18 Director from making any other adjustment
1525	1525	19 otherwise allowed under Section 404 of this Act
1526	1526	20 for any tax year beginning after the effective
1527	1527	21 date of this amendment provided such adjustment is
1528	1528	22 made pursuant to regulation adopted by the
1529	1529	23 Department and such regulations provide methods
1530	1530	24 and standards by which the Department will utilize
1531	1531	25 its authority under Section 404 of this Act;
1532	1532	26 (E-14) For taxable years ending on or after
1533	1533
1534	1534
1535	1535
1536	1536
1537	1537
1538	1538	HB1573 - 42 - LRB104 06505 HLH 16541 b
1539	1539
1540	1540
1541	1541	HB1573- 43 -LRB104 06505 HLH 16541 b HB1573 - 43 - LRB104 06505 HLH 16541 b
1542	1542	HB1573 - 43 - LRB104 06505 HLH 16541 b
1543	1543	1 December 31, 2008, an amount equal to the amount of
1544	1544	2 insurance premium expenses and costs otherwise allowed
1545	1545	3 as a deduction in computing base income, and that were
1546	1546	4 paid, accrued, or incurred, directly or indirectly, to
1547	1547	5 a person who would be a member of the same unitary
1548	1548	6 business group but for the fact that the person is
1549	1549	7 prohibited under Section 1501(a)(27) from being
1550	1550	8 included in the unitary business group because he or
1551	1551	9 she is ordinarily required to apportion business
1552	1552	10 income under different subsections of Section 304. The
1553	1553	11 addition modification required by this subparagraph
1554	1554	12 shall be reduced to the extent that dividends were
1555	1555	13 included in base income of the unitary group for the
1556	1556	14 same taxable year and received by the taxpayer or by a
1557	1557	15 member of the taxpayer's unitary business group
1558	1558	16 (including amounts included in gross income under
1559	1559	17 Sections 951 through 964 of the Internal Revenue Code
1560	1560	18 and amounts included in gross income under Section 78
1561	1561	19 of the Internal Revenue Code) with respect to the
1562	1562	20 stock of the same person to whom the premiums and costs
1563	1563	21 were directly or indirectly paid, incurred, or
1564	1564	22 accrued. The preceding sentence does not apply to the
1565	1565	23 extent that the same dividends caused a reduction to
1566	1566	24 the addition modification required under Section
1567	1567	25 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1568	1568	26 Act;
1569	1569
1570	1570
1571	1571
1572	1572
1573	1573
1574	1574	HB1573 - 43 - LRB104 06505 HLH 16541 b
1575	1575
1576	1576
1577	1577	HB1573- 44 -LRB104 06505 HLH 16541 b HB1573 - 44 - LRB104 06505 HLH 16541 b
1578	1578	HB1573 - 44 - LRB104 06505 HLH 16541 b
1579	1579	1 (E-15) For taxable years beginning after December
1580	1580	2 31, 2008, any deduction for dividends paid by a
1581	1581	3 captive real estate investment trust that is allowed
1582	1582	4 to a real estate investment trust under Section
1583	1583	5 857(b)(2)(B) of the Internal Revenue Code for
1584	1584	6 dividends paid;
1585	1585	7 (E-16) An amount equal to the credit allowable to
1586	1586	8 the taxpayer under Section 218(a) of this Act,
1587	1587	9 determined without regard to Section 218(c) of this
1588	1588	10 Act;
1589	1589	11 (E-17) For taxable years ending on or after
1590	1590	12 December 31, 2017, an amount equal to the deduction
1591	1591	13 allowed under Section 199 of the Internal Revenue Code
1592	1592	14 for the taxable year;
1593	1593	15 (E-18) for taxable years beginning after December
1594	1594	16 31, 2018, an amount equal to the deduction allowed
1595	1595	17 under Section 250(a)(1)(A) of the Internal Revenue
1596	1596	18 Code for the taxable year;
1597	1597	19 (E-19) for taxable years ending on or after June
1598	1598	20 30, 2021, an amount equal to the deduction allowed
1599	1599	21 under Section 250(a)(1)(B)(i) of the Internal Revenue
1600	1600	22 Code for the taxable year;
1601	1601	23 (E-20) for taxable years ending on or after June
1602	1602	24 30, 2021, an amount equal to the deduction allowed
1603	1603	25 under Sections 243(e) and 245A(a) of the Internal
1604	1604	26 Revenue Code for the taxable year;
1605	1605
1606	1606
1607	1607
1608	1608
1609	1609
1610	1610	HB1573 - 44 - LRB104 06505 HLH 16541 b
1611	1611
1612	1612
1613	1613	HB1573- 45 -LRB104 06505 HLH 16541 b HB1573 - 45 - LRB104 06505 HLH 16541 b
1614	1614	HB1573 - 45 - LRB104 06505 HLH 16541 b
1615	1615	1 (E-21) the amount that is claimed as a federal
1616	1616	2 deduction when computing the taxpayer's federal
1617	1617	3 taxable income for the taxable year and that is
1618	1618	4 attributable to an endowment gift for which the
1619	1619	5 taxpayer receives a credit under the Illinois Gives
1620	1620	6 Tax Credit Act;
1621	1621	7 and by deducting from the total so obtained the sum of the
1622	1622	8 following amounts:
1623	1623	9 (F) An amount equal to the amount of any tax
1624	1624	10 imposed by this Act which was refunded to the taxpayer
1625	1625	11 and included in such total for the taxable year;
1626	1626	12 (G) An amount equal to any amount included in such
1627	1627	13 total under Section 78 of the Internal Revenue Code;
1628	1628	14 (H) In the case of a regulated investment company,
1629	1629	15 an amount equal to the amount of exempt interest
1630	1630	16 dividends as defined in subsection (b)(5) of Section
1631	1631	17 852 of the Internal Revenue Code, paid to shareholders
1632	1632	18 for the taxable year;
1633	1633	19 (I) With the exception of any amounts subtracted
1634	1634	20 under subparagraph (J), an amount equal to the sum of
1635	1635	21 all amounts disallowed as deductions by (i) Sections
1636	1636	22 171(a)(2) and 265(a)(2) and amounts disallowed as
1637	1637	23 interest expense by Section 291(a)(3) of the Internal
1638	1638	24 Revenue Code, and all amounts of expenses allocable to
1639	1639	25 interest and disallowed as deductions by Section
1640	1640	26 265(a)(1) of the Internal Revenue Code; and (ii) for
1641	1641
1642	1642
1643	1643
1644	1644
1645	1645
1646	1646	HB1573 - 45 - LRB104 06505 HLH 16541 b
1647	1647
1648	1648
1649	1649	HB1573- 46 -LRB104 06505 HLH 16541 b HB1573 - 46 - LRB104 06505 HLH 16541 b
1650	1650	HB1573 - 46 - LRB104 06505 HLH 16541 b
1651	1651	1 taxable years ending on or after August 13, 1999,
1652	1652	2 Sections 171(a)(2), 265, 280C, 291(a)(3), and
1653	1653	3 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
1654	1654	4 for tax years ending on or after December 31, 2011,
1655	1655	5 amounts disallowed as deductions by Section 45G(e)(3)
1656	1656	6 of the Internal Revenue Code and, for taxable years
1657	1657	7 ending on or after December 31, 2008, any amount
1658	1658	8 included in gross income under Section 87 of the
1659	1659	9 Internal Revenue Code and the policyholders' share of
1660	1660	10 tax-exempt interest of a life insurance company under
1661	1661	11 Section 807(a)(2)(B) of the Internal Revenue Code (in
1662	1662	12 the case of a life insurance company with gross income
1663	1663	13 from a decrease in reserves for the tax year) or
1664	1664	14 Section 807(b)(1)(B) of the Internal Revenue Code (in
1665	1665	15 the case of a life insurance company allowed a
1666	1666	16 deduction for an increase in reserves for the tax
1667	1667	17 year); the provisions of this subparagraph are exempt
1668	1668	18 from the provisions of Section 250;
1669	1669	19 (J) An amount equal to all amounts included in
1670	1670	20 such total which are exempt from taxation by this
1671	1671	21 State either by reason of its statutes or Constitution
1672	1672	22 or by reason of the Constitution, treaties or statutes
1673	1673	23 of the United States; provided that, in the case of any
1674	1674	24 statute of this State that exempts income derived from
1675	1675	25 bonds or other obligations from the tax imposed under
1676	1676	26 this Act, the amount exempted shall be the interest
1677	1677
1678	1678
1679	1679
1680	1680
1681	1681
1682	1682	HB1573 - 46 - LRB104 06505 HLH 16541 b
1683	1683
1684	1684
1685	1685	HB1573- 47 -LRB104 06505 HLH 16541 b HB1573 - 47 - LRB104 06505 HLH 16541 b
1686	1686	HB1573 - 47 - LRB104 06505 HLH 16541 b
1687	1687	1 net of bond premium amortization;
1688	1688	2 (K) An amount equal to those dividends included in
1689	1689	3 such total which were paid by a corporation which
1690	1690	4 conducts business operations in a River Edge
1691	1691	5 Redevelopment Zone or zones created under the River
1692	1692	6 Edge Redevelopment Zone Act and conducts substantially
1693	1693	7 all of its operations in a River Edge Redevelopment
1694	1694	8 Zone or zones. This subparagraph (K) is exempt from
1695	1695	9 the provisions of Section 250;
1696	1696	10 (L) An amount equal to those dividends included in
1697	1697	11 such total that were paid by a corporation that
1698	1698	12 conducts business operations in a federally designated
1699	1699	13 Foreign Trade Zone or Sub-Zone and that is designated
1700	1700	14 a High Impact Business located in Illinois; provided
1701	1701	15 that dividends eligible for the deduction provided in
1702	1702	16 subparagraph (K) of paragraph 2 of this subsection
1703	1703	17 shall not be eligible for the deduction provided under
1704	1704	18 this subparagraph (L);
1705	1705	19 (M) For any taxpayer that is a financial
1706	1706	20 organization within the meaning of Section 304(c) of
1707	1707	21 this Act, an amount included in such total as interest
1708	1708	22 income from a loan or loans made by such taxpayer to a
1709	1709	23 borrower, to the extent that such a loan is secured by
1710	1710	24 property which is eligible for the River Edge
1711	1711	25 Redevelopment Zone Investment Credit. To determine the
1712	1712	26 portion of a loan or loans that is secured by property
1713	1713
1714	1714
1715	1715
1716	1716
1717	1717
1718	1718	HB1573 - 47 - LRB104 06505 HLH 16541 b
1719	1719
1720	1720
1721	1721	HB1573- 48 -LRB104 06505 HLH 16541 b HB1573 - 48 - LRB104 06505 HLH 16541 b
1722	1722	HB1573 - 48 - LRB104 06505 HLH 16541 b
1723	1723	1 eligible for a Section 201(f) investment credit to the
1724	1724	2 borrower, the entire principal amount of the loan or
1725	1725	3 loans between the taxpayer and the borrower should be
1726	1726	4 divided into the basis of the Section 201(f)
1727	1727	5 investment credit property which secures the loan or
1728	1728	6 loans, using for this purpose the original basis of
1729	1729	7 such property on the date that it was placed in service
1730	1730	8 in the River Edge Redevelopment Zone. The subtraction
1731	1731	9 modification available to the taxpayer in any year
1732	1732	10 under this subsection shall be that portion of the
1733	1733	11 total interest paid by the borrower with respect to
1734	1734	12 such loan attributable to the eligible property as
1735	1735	13 calculated under the previous sentence. This
1736	1736	14 subparagraph (M) is exempt from the provisions of
1737	1737	15 Section 250;
1738	1738	16 (M-1) For any taxpayer that is a financial
1739	1739	17 organization within the meaning of Section 304(c) of
1740	1740	18 this Act, an amount included in such total as interest
1741	1741	19 income from a loan or loans made by such taxpayer to a
1742	1742	20 borrower, to the extent that such a loan is secured by
1743	1743	21 property which is eligible for the High Impact
1744	1744	22 Business Investment Credit. To determine the portion
1745	1745	23 of a loan or loans that is secured by property eligible
1746	1746	24 for a Section 201(h) investment credit to the
1747	1747	25 borrower, the entire principal amount of the loan or
1748	1748	26 loans between the taxpayer and the borrower should be
1749	1749
1750	1750
1751	1751
1752	1752
1753	1753
1754	1754	HB1573 - 48 - LRB104 06505 HLH 16541 b
1755	1755
1756	1756
1757	1757	HB1573- 49 -LRB104 06505 HLH 16541 b HB1573 - 49 - LRB104 06505 HLH 16541 b
1758	1758	HB1573 - 49 - LRB104 06505 HLH 16541 b
1759	1759	1 divided into the basis of the Section 201(h)
1760	1760	2 investment credit property which secures the loan or
1761	1761	3 loans, using for this purpose the original basis of
1762	1762	4 such property on the date that it was placed in service
1763	1763	5 in a federally designated Foreign Trade Zone or
1764	1764	6 Sub-Zone located in Illinois. No taxpayer that is
1765	1765	7 eligible for the deduction provided in subparagraph
1766	1766	8 (M) of paragraph (2) of this subsection shall be
1767	1767	9 eligible for the deduction provided under this
1768	1768	10 subparagraph (M-1). The subtraction modification
1769	1769	11 available to taxpayers in any year under this
1770	1770	12 subsection shall be that portion of the total interest
1771	1771	13 paid by the borrower with respect to such loan
1772	1772	14 attributable to the eligible property as calculated
1773	1773	15 under the previous sentence;
1774	1774	16 (N) Two times any contribution made during the
1775	1775	17 taxable year to a designated zone organization to the
1776	1776	18 extent that the contribution (i) qualifies as a
1777	1777	19 charitable contribution under subsection (c) of
1778	1778	20 Section 170 of the Internal Revenue Code and (ii)
1779	1779	21 must, by its terms, be used for a project approved by
1780	1780	22 the Department of Commerce and Economic Opportunity
1781	1781	23 under Section 11 of the Illinois Enterprise Zone Act
1782	1782	24 or under Section 10-10 of the River Edge Redevelopment
1783	1783	25 Zone Act. This subparagraph (N) is exempt from the
1784	1784	26 provisions of Section 250;
1785	1785
1786	1786
1787	1787
1788	1788
1789	1789
1790	1790	HB1573 - 49 - LRB104 06505 HLH 16541 b
1791	1791
1792	1792
1793	1793	HB1573- 50 -LRB104 06505 HLH 16541 b HB1573 - 50 - LRB104 06505 HLH 16541 b
1794	1794	HB1573 - 50 - LRB104 06505 HLH 16541 b
1795	1795	1 (O) An amount equal to: (i) 85% for taxable years
1796	1796	2 ending on or before December 31, 1992, or, a
1797	1797	3 percentage equal to the percentage allowable under
1798	1798	4 Section 243(a)(1) of the Internal Revenue Code of 1986
1799	1799	5 for taxable years ending after December 31, 1992, of
1800	1800	6 the amount by which dividends included in taxable
1801	1801	7 income and received from a corporation that is not
1802	1802	8 created or organized under the laws of the United
1803	1803	9 States or any state or political subdivision thereof,
1804	1804	10 including, for taxable years ending on or after
1805	1805	11 December 31, 1988, dividends received or deemed
1806	1806	12 received or paid or deemed paid under Sections 951
1807	1807	13 through 965 of the Internal Revenue Code, exceed the
1808	1808	14 amount of the modification provided under subparagraph
1809	1809	15 (G) of paragraph (2) of this subsection (b) which is
1810	1810	16 related to such dividends, and including, for taxable
1811	1811	17 years ending on or after December 31, 2008, dividends
1812	1812	18 received from a captive real estate investment trust;
1813	1813	19 plus (ii) 100% of the amount by which dividends,
1814	1814	20 included in taxable income and received, including,
1815	1815	21 for taxable years ending on or after December 31,
1816	1816	22 1988, dividends received or deemed received or paid or
1817	1817	23 deemed paid under Sections 951 through 964 of the
1818	1818	24 Internal Revenue Code and including, for taxable years
1819	1819	25 ending on or after December 31, 2008, dividends
1820	1820	26 received from a captive real estate investment trust,
1821	1821
1822	1822
1823	1823
1824	1824
1825	1825
1826	1826	HB1573 - 50 - LRB104 06505 HLH 16541 b
1827	1827
1828	1828
1829	1829	HB1573- 51 -LRB104 06505 HLH 16541 b HB1573 - 51 - LRB104 06505 HLH 16541 b
1830	1830	HB1573 - 51 - LRB104 06505 HLH 16541 b
1831	1831	1 from any such corporation specified in clause (i) that
1832	1832	2 would but for the provisions of Section 1504(b)(3) of
1833	1833	3 the Internal Revenue Code be treated as a member of the
1834	1834	4 affiliated group which includes the dividend
1835	1835	5 recipient, exceed the amount of the modification
1836	1836	6 provided under subparagraph (G) of paragraph (2) of
1837	1837	7 this subsection (b) which is related to such
1838	1838	8 dividends. For taxable years ending on or after June
1839	1839	9 30, 2021, (i) for purposes of this subparagraph, the
1840	1840	10 term "dividend" does not include any amount treated as
1841	1841	11 a dividend under Section 1248 of the Internal Revenue
1842	1842	12 Code, and (ii) this subparagraph shall not apply to
1843	1843	13 dividends for which a deduction is allowed under
1844	1844	14 Section 245(a) of the Internal Revenue Code. This
1845	1845	15 subparagraph (O) is exempt from the provisions of
1846	1846	16 Section 250 of this Act;
1847	1847	17 (P) An amount equal to any contribution made to a
1848	1848	18 job training project established pursuant to the Tax
1849	1849	19 Increment Allocation Redevelopment Act;
1850	1850	20 (Q) An amount equal to the amount of the deduction
1851	1851	21 used to compute the federal income tax credit for
1852	1852	22 restoration of substantial amounts held under claim of
1853	1853	23 right for the taxable year pursuant to Section 1341 of
1854	1854	24 the Internal Revenue Code;
1855	1855	25 (R) On and after July 20, 1999, in the case of an
1856	1856	26 attorney-in-fact with respect to whom an interinsurer
1857	1857
1858	1858
1859	1859
1860	1860
1861	1861
1862	1862	HB1573 - 51 - LRB104 06505 HLH 16541 b
1863	1863
1864	1864
1865	1865	HB1573- 52 -LRB104 06505 HLH 16541 b HB1573 - 52 - LRB104 06505 HLH 16541 b
1866	1866	HB1573 - 52 - LRB104 06505 HLH 16541 b
1867	1867	1 or a reciprocal insurer has made the election under
1868	1868	2 Section 835 of the Internal Revenue Code, 26 U.S.C.
1869	1869	3 835, an amount equal to the excess, if any, of the
1870	1870	4 amounts paid or incurred by that interinsurer or
1871	1871	5 reciprocal insurer in the taxable year to the
1872	1872	6 attorney-in-fact over the deduction allowed to that
1873	1873	7 interinsurer or reciprocal insurer with respect to the
1874	1874	8 attorney-in-fact under Section 835(b) of the Internal
1875	1875	9 Revenue Code for the taxable year; the provisions of
1876	1876	10 this subparagraph are exempt from the provisions of
1877	1877	11 Section 250;
1878	1878	12 (S) For taxable years ending on or after December
1879	1879	13 31, 1997, in the case of a Subchapter S corporation, an
1880	1880	14 amount equal to all amounts of income allocable to a
1881	1881	15 shareholder subject to the Personal Property Tax
1882	1882	16 Replacement Income Tax imposed by subsections (c) and
1883	1883	17 (d) of Section 201 of this Act, including amounts
1884	1884	18 allocable to organizations exempt from federal income
1885	1885	19 tax by reason of Section 501(a) of the Internal
1886	1886	20 Revenue Code. This subparagraph (S) is exempt from the
1887	1887	21 provisions of Section 250;
1888	1888	22 (T) For taxable years 2001 and thereafter, for the
1889	1889	23 taxable year in which the bonus depreciation deduction
1890	1890	24 is taken on the taxpayer's federal income tax return
1891	1891	25 under subsection (k) of Section 168 of the Internal
1892	1892	26 Revenue Code and for each applicable taxable year
1893	1893
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898	HB1573 - 52 - LRB104 06505 HLH 16541 b
1899	1899
1900	1900
1901	1901	HB1573- 53 -LRB104 06505 HLH 16541 b HB1573 - 53 - LRB104 06505 HLH 16541 b
1902	1902	HB1573 - 53 - LRB104 06505 HLH 16541 b
1903	1903	1 thereafter, an amount equal to "x", where:
1904	1904	2 (1) "y" equals the amount of the depreciation
1905	1905	3 deduction taken for the taxable year on the
1906	1906	4 taxpayer's federal income tax return on property
1907	1907	5 for which the bonus depreciation deduction was
1908	1908	6 taken in any year under subsection (k) of Section
1909	1909	7 168 of the Internal Revenue Code, but not
1910	1910	8 including the bonus depreciation deduction;
1911	1911	9 (2) for taxable years ending on or before
1912	1912	10 December 31, 2005, "x" equals "y" multiplied by 30
1913	1913	11 and then divided by 70 (or "y" multiplied by
1914	1914	12 0.429); and
1915	1915	13 (3) for taxable years ending after December
1916	1916	14 31, 2005:
1917	1917	15 (i) for property on which a bonus
1918	1918	16 depreciation deduction of 30% of the adjusted
1919	1919	17 basis was taken, "x" equals "y" multiplied by
1920	1920	18 30 and then divided by 70 (or "y" multiplied
1921	1921	19 by 0.429);
1922	1922	20 (ii) for property on which a bonus
1923	1923	21 depreciation deduction of 50% of the adjusted
1924	1924	22 basis was taken, "x" equals "y" multiplied by
1925	1925	23 1.0;
1926	1926	24 (iii) for property on which a bonus
1927	1927	25 depreciation deduction of 100% of the adjusted
1928	1928	26 basis was taken in a taxable year ending on or
1929	1929
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934	HB1573 - 53 - LRB104 06505 HLH 16541 b
1935	1935
1936	1936
1937	1937	HB1573- 54 -LRB104 06505 HLH 16541 b HB1573 - 54 - LRB104 06505 HLH 16541 b
1938	1938	HB1573 - 54 - LRB104 06505 HLH 16541 b
1939	1939	1 after December 31, 2021, "x" equals the
1940	1940	2 depreciation deduction that would be allowed
1941	1941	3 on that property if the taxpayer had made the
1942	1942	4 election under Section 168(k)(7) of the
1943	1943	5 Internal Revenue Code to not claim bonus
1944	1944	6 depreciation on that property; and
1945	1945	7 (iv) for property on which a bonus
1946	1946	8 depreciation deduction of a percentage other
1947	1947	9 than 30%, 50% or 100% of the adjusted basis
1948	1948	10 was taken in a taxable year ending on or after
1949	1949	11 December 31, 2021, "x" equals "y" multiplied
1950	1950	12 by 100 times the percentage bonus depreciation
1951	1951	13 on the property (that is, 100(bonus%)) and
1952	1952	14 then divided by 100 times 1 minus the
1953	1953	15 percentage bonus depreciation on the property
1954	1954	16 (that is, 100(1-bonus%)).
1955	1955	17 The aggregate amount deducted under this
1956	1956	18 subparagraph in all taxable years for any one piece of
1957	1957	19 property may not exceed the amount of the bonus
1958	1958	20 depreciation deduction taken on that property on the
1959	1959	21 taxpayer's federal income tax return under subsection
1960	1960	22 (k) of Section 168 of the Internal Revenue Code. This
1961	1961	23 subparagraph (T) is exempt from the provisions of
1962	1962	24 Section 250;
1963	1963	25 (U) If the taxpayer sells, transfers, abandons, or
1964	1964	26 otherwise disposes of property for which the taxpayer
1965	1965
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970	HB1573 - 54 - LRB104 06505 HLH 16541 b
1971	1971
1972	1972
1973	1973	HB1573- 55 -LRB104 06505 HLH 16541 b HB1573 - 55 - LRB104 06505 HLH 16541 b
1974	1974	HB1573 - 55 - LRB104 06505 HLH 16541 b
1975	1975	1 was required in any taxable year to make an addition
1976	1976	2 modification under subparagraph (E-10), then an amount
1977	1977	3 equal to that addition modification.
1978	1978	4 If the taxpayer continues to own property through
1979	1979	5 the last day of the last tax year for which a
1980	1980	6 subtraction is allowed with respect to that property
1981	1981	7 under subparagraph (T) and for which the taxpayer was
1982	1982	8 required in any taxable year to make an addition
1983	1983	9 modification under subparagraph (E-10), then an amount
1984	1984	10 equal to that addition modification.
1985	1985	11 The taxpayer is allowed to take the deduction
1986	1986	12 under this subparagraph only once with respect to any
1987	1987	13 one piece of property.
1988	1988	14 This subparagraph (U) is exempt from the
1989	1989	15 provisions of Section 250;
1990	1990	16 (V) The amount of: (i) any interest income (net of
1991	1991	17 the deductions allocable thereto) taken into account
1992	1992	18 for the taxable year with respect to a transaction
1993	1993	19 with a taxpayer that is required to make an addition
1994	1994	20 modification with respect to such transaction under
1995	1995	21 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1996	1996	22 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1997	1997	23 the amount of such addition modification, (ii) any
1998	1998	24 income from intangible property (net of the deductions
1999	1999	25 allocable thereto) taken into account for the taxable
2000	2000	26 year with respect to a transaction with a taxpayer
2001	2001
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006	HB1573 - 55 - LRB104 06505 HLH 16541 b
2007	2007
2008	2008
2009	2009	HB1573- 56 -LRB104 06505 HLH 16541 b HB1573 - 56 - LRB104 06505 HLH 16541 b
2010	2010	HB1573 - 56 - LRB104 06505 HLH 16541 b
2011	2011	1 that is required to make an addition modification with
2012	2012	2 respect to such transaction under Section
2013	2013	3 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2014	2014	4 203(d)(2)(D-8), but not to exceed the amount of such
2015	2015	5 addition modification, and (iii) any insurance premium
2016	2016	6 income (net of deductions allocable thereto) taken
2017	2017	7 into account for the taxable year with respect to a
2018	2018	8 transaction with a taxpayer that is required to make
2019	2019	9 an addition modification with respect to such
2020	2020	10 transaction under Section 203(a)(2)(D-19), Section
2021	2021	11 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
2022	2022	12 203(d)(2)(D-9), but not to exceed the amount of that
2023	2023	13 addition modification. This subparagraph (V) is exempt
2024	2024	14 from the provisions of Section 250;
2025	2025	15 (W) An amount equal to the interest income taken
2026	2026	16 into account for the taxable year (net of the
2027	2027	17 deductions allocable thereto) with respect to
2028	2028	18 transactions with (i) a foreign person who would be a
2029	2029	19 member of the taxpayer's unitary business group but
2030	2030	20 for the fact that the foreign person's business
2031	2031	21 activity outside the United States is 80% or more of
2032	2032	22 that person's total business activity and (ii) for
2033	2033	23 taxable years ending on or after December 31, 2008, to
2034	2034	24 a person who would be a member of the same unitary
2035	2035	25 business group but for the fact that the person is
2036	2036	26 prohibited under Section 1501(a)(27) from being
2037	2037
2038	2038
2039	2039
2040	2040
2041	2041
2042	2042	HB1573 - 56 - LRB104 06505 HLH 16541 b
2043	2043
2044	2044
2045	2045	HB1573- 57 -LRB104 06505 HLH 16541 b HB1573 - 57 - LRB104 06505 HLH 16541 b
2046	2046	HB1573 - 57 - LRB104 06505 HLH 16541 b
2047	2047	1 included in the unitary business group because he or
2048	2048	2 she is ordinarily required to apportion business
2049	2049	3 income under different subsections of Section 304, but
2050	2050	4 not to exceed the addition modification required to be
2051	2051	5 made for the same taxable year under Section
2052	2052	6 203(b)(2)(E-12) for interest paid, accrued, or
2053	2053	7 incurred, directly or indirectly, to the same person.
2054	2054	8 This subparagraph (W) is exempt from the provisions of
2055	2055	9 Section 250;
2056	2056	10 (X) An amount equal to the income from intangible
2057	2057	11 property taken into account for the taxable year (net
2058	2058	12 of the deductions allocable thereto) with respect to
2059	2059	13 transactions with (i) a foreign person who would be a
2060	2060	14 member of the taxpayer's unitary business group but
2061	2061	15 for the fact that the foreign person's business
2062	2062	16 activity outside the United States is 80% or more of
2063	2063	17 that person's total business activity and (ii) for
2064	2064	18 taxable years ending on or after December 31, 2008, to
2065	2065	19 a person who would be a member of the same unitary
2066	2066	20 business group but for the fact that the person is
2067	2067	21 prohibited under Section 1501(a)(27) from being
2068	2068	22 included in the unitary business group because he or
2069	2069	23 she is ordinarily required to apportion business
2070	2070	24 income under different subsections of Section 304, but
2071	2071	25 not to exceed the addition modification required to be
2072	2072	26 made for the same taxable year under Section
2073	2073
2074	2074
2075	2075
2076	2076
2077	2077
2078	2078	HB1573 - 57 - LRB104 06505 HLH 16541 b
2079	2079
2080	2080
2081	2081	HB1573- 58 -LRB104 06505 HLH 16541 b HB1573 - 58 - LRB104 06505 HLH 16541 b
2082	2082	HB1573 - 58 - LRB104 06505 HLH 16541 b
2083	2083	1 203(b)(2)(E-13) for intangible expenses and costs
2084	2084	2 paid, accrued, or incurred, directly or indirectly, to
2085	2085	3 the same foreign person. This subparagraph (X) is
2086	2086	4 exempt from the provisions of Section 250;
2087	2087	5 (Y) For taxable years ending on or after December
2088	2088	6 31, 2011, in the case of a taxpayer who was required to
2089	2089	7 add back any insurance premiums under Section
2090	2090	8 203(b)(2)(E-14), such taxpayer may elect to subtract
2091	2091	9 that part of a reimbursement received from the
2092	2092	10 insurance company equal to the amount of the expense
2093	2093	11 or loss (including expenses incurred by the insurance
2094	2094	12 company) that would have been taken into account as a
2095	2095	13 deduction for federal income tax purposes if the
2096	2096	14 expense or loss had been uninsured. If a taxpayer
2097	2097	15 makes the election provided for by this subparagraph
2098	2098	16 (Y), the insurer to which the premiums were paid must
2099	2099	17 add back to income the amount subtracted by the
2100	2100	18 taxpayer pursuant to this subparagraph (Y). This
2101	2101	19 subparagraph (Y) is exempt from the provisions of
2102	2102	20 Section 250;
2103	2103	21 (Z) The difference between the nondeductible
2104	2104	22 controlled foreign corporation dividends under Section
2105	2105	23 965(e)(3) of the Internal Revenue Code over the
2106	2106	24 taxable income of the taxpayer, computed without
2107	2107	25 regard to Section 965(e)(2)(A) of the Internal Revenue
2108	2108	26 Code, and without regard to any net operating loss
2109	2109
2110	2110
2111	2111
2112	2112
2113	2113
2114	2114	HB1573 - 58 - LRB104 06505 HLH 16541 b
2115	2115
2116	2116
2117	2117	HB1573- 59 -LRB104 06505 HLH 16541 b HB1573 - 59 - LRB104 06505 HLH 16541 b
2118	2118	HB1573 - 59 - LRB104 06505 HLH 16541 b
2119	2119	1 deduction. This subparagraph (Z) is exempt from the
2120	2120	2 provisions of Section 250; and
2121	2121	3 (AA) For taxable years beginning on or after
2122	2122	4 January 1, 2023, for any cannabis establishment
2123	2123	5 operating in this State and licensed under the
2124	2124	6 Cannabis Regulation and Tax Act or any cannabis
2125	2125	7 cultivation center or medical cannabis dispensing
2126	2126	8 organization operating in this State and licensed
2127	2127	9 under the Compassionate Use of Medical Cannabis
2128	2128	10 Program Act, an amount equal to the deductions that
2129	2129	11 were disallowed under Section 280E of the Internal
2130	2130	12 Revenue Code for the taxable year and that would not be
2131	2131	13 added back under this subsection. The provisions of
2132	2132	14 this subparagraph (AA) are exempt from the provisions
2133	2133	15 of Section 250; and .
2134	2134	16 (BB) For taxable years beginning on or after
2135	2135	17 January 1, 2026, amounts paid by the taxpayer on
2136	2136	18 behalf of an employee of the taxpayer as part of an
2137	2137	19 educational assistance program, as defined in Section
2138	2138	20 127 of the Internal Revenue Code; the deduction under
2139	2139	21 this subparagraph shall apply only to the first $5,250
2140	2140	22 of such assistance so furnished to any particular
2141	2141	23 individual; this subparagraph is exempt from the
2142	2142	24 provisions of Section 250.
2143	2143	25 (3) Special rule. For purposes of paragraph (2)(A),
2144	2144	26 "gross income" in the case of a life insurance company,
2145	2145
2146	2146
2147	2147
2148	2148
2149	2149
2150	2150	HB1573 - 59 - LRB104 06505 HLH 16541 b
2151	2151
2152	2152
2153	2153	HB1573- 60 -LRB104 06505 HLH 16541 b HB1573 - 60 - LRB104 06505 HLH 16541 b
2154	2154	HB1573 - 60 - LRB104 06505 HLH 16541 b
2155	2155	1 for tax years ending on and after December 31, 1994, and
2156	2156	2 prior to December 31, 2011, shall mean the gross
2157	2157	3 investment income for the taxable year and, for tax years
2158	2158	4 ending on or after December 31, 2011, shall mean all
2159	2159	5 amounts included in life insurance gross income under
2160	2160	6 Section 803(a)(3) of the Internal Revenue Code.
2161	2161	7 (c) Trusts and estates.
2162	2162	8 (1) In general. In the case of a trust or estate, base
2163	2163	9 income means an amount equal to the taxpayer's taxable
2164	2164	10 income for the taxable year as modified by paragraph (2).
2165	2165	11 (2) Modifications. Subject to the provisions of
2166	2166	12 paragraph (3), the taxable income referred to in paragraph
2167	2167	13 (1) shall be modified by adding thereto the sum of the
2168	2168	14 following amounts:
2169	2169	15 (A) An amount equal to all amounts paid or accrued
2170	2170	16 to the taxpayer as interest or dividends during the
2171	2171	17 taxable year to the extent excluded from gross income
2172	2172	18 in the computation of taxable income;
2173	2173	19 (B) In the case of (i) an estate, $600; (ii) a
2174	2174	20 trust which, under its governing instrument, is
2175	2175	21 required to distribute all of its income currently,
2176	2176	22 $300; and (iii) any other trust, $100, but in each such
2177	2177	23 case, only to the extent such amount was deducted in
2178	2178	24 the computation of taxable income;
2179	2179	25 (C) An amount equal to the amount of tax imposed by
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184
2185	2185	HB1573 - 60 - LRB104 06505 HLH 16541 b
2186	2186
2187	2187
2188	2188	HB1573- 61 -LRB104 06505 HLH 16541 b HB1573 - 61 - LRB104 06505 HLH 16541 b
2189	2189	HB1573 - 61 - LRB104 06505 HLH 16541 b
2190	2190	1 this Act to the extent deducted from gross income in
2191	2191	2 the computation of taxable income for the taxable
2192	2192	3 year;
2193	2193	4 (D) The amount of any net operating loss deduction
2194	2194	5 taken in arriving at taxable income, other than a net
2195	2195	6 operating loss carried forward from a taxable year
2196	2196	7 ending prior to December 31, 1986;
2197	2197	8 (E) For taxable years in which a net operating
2198	2198	9 loss carryback or carryforward from a taxable year
2199	2199	10 ending prior to December 31, 1986 is an element of
2200	2200	11 taxable income under paragraph (1) of subsection (e)
2201	2201	12 or subparagraph (E) of paragraph (2) of subsection
2202	2202	13 (e), the amount by which addition modifications other
2203	2203	14 than those provided by this subparagraph (E) exceeded
2204	2204	15 subtraction modifications in such taxable year, with
2205	2205	16 the following limitations applied in the order that
2206	2206	17 they are listed:
2207	2207	18 (i) the addition modification relating to the
2208	2208	19 net operating loss carried back or forward to the
2209	2209	20 taxable year from any taxable year ending prior to
2210	2210	21 December 31, 1986 shall be reduced by the amount
2211	2211	22 of addition modification under this subparagraph
2212	2212	23 (E) which related to that net operating loss and
2213	2213	24 which was taken into account in calculating the
2214	2214	25 base income of an earlier taxable year, and
2215	2215	26 (ii) the addition modification relating to the
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220
2221	2221	HB1573 - 61 - LRB104 06505 HLH 16541 b
2222	2222
2223	2223
2224	2224	HB1573- 62 -LRB104 06505 HLH 16541 b HB1573 - 62 - LRB104 06505 HLH 16541 b
2225	2225	HB1573 - 62 - LRB104 06505 HLH 16541 b
2226	2226	1 net operating loss carried back or forward to the
2227	2227	2 taxable year from any taxable year ending prior to
2228	2228	3 December 31, 1986 shall not exceed the amount of
2229	2229	4 such carryback or carryforward;
2230	2230	5 For taxable years in which there is a net
2231	2231	6 operating loss carryback or carryforward from more
2232	2232	7 than one other taxable year ending prior to December
2233	2233	8 31, 1986, the addition modification provided in this
2234	2234	9 subparagraph (E) shall be the sum of the amounts
2235	2235	10 computed independently under the preceding provisions
2236	2236	11 of this subparagraph (E) for each such taxable year;
2237	2237	12 (F) For taxable years ending on or after January
2238	2238	13 1, 1989, an amount equal to the tax deducted pursuant
2239	2239	14 to Section 164 of the Internal Revenue Code if the
2240	2240	15 trust or estate is claiming the same tax for purposes
2241	2241	16 of the Illinois foreign tax credit under Section 601
2242	2242	17 of this Act;
2243	2243	18 (G) An amount equal to the amount of the capital
2244	2244	19 gain deduction allowable under the Internal Revenue
2245	2245	20 Code, to the extent deducted from gross income in the
2246	2246	21 computation of taxable income;
2247	2247	22 (G-5) For taxable years ending after December 31,
2248	2248	23 1997, an amount equal to any eligible remediation
2249	2249	24 costs that the trust or estate deducted in computing
2250	2250	25 adjusted gross income and for which the trust or
2251	2251	26 estate claims a credit under subsection (l) of Section
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256
2257	2257	HB1573 - 62 - LRB104 06505 HLH 16541 b
2258	2258
2259	2259
2260	2260	HB1573- 63 -LRB104 06505 HLH 16541 b HB1573 - 63 - LRB104 06505 HLH 16541 b
2261	2261	HB1573 - 63 - LRB104 06505 HLH 16541 b
2262	2262	1 201;
2263	2263	2 (G-10) For taxable years 2001 and thereafter, an
2264	2264	3 amount equal to the bonus depreciation deduction taken
2265	2265	4 on the taxpayer's federal income tax return for the
2266	2266	5 taxable year under subsection (k) of Section 168 of
2267	2267	6 the Internal Revenue Code; and
2268	2268	7 (G-11) If the taxpayer sells, transfers, abandons,
2269	2269	8 or otherwise disposes of property for which the
2270	2270	9 taxpayer was required in any taxable year to make an
2271	2271	10 addition modification under subparagraph (G-10), then
2272	2272	11 an amount equal to the aggregate amount of the
2273	2273	12 deductions taken in all taxable years under
2274	2274	13 subparagraph (R) with respect to that property.
2275	2275	14 If the taxpayer continues to own property through
2276	2276	15 the last day of the last tax year for which a
2277	2277	16 subtraction is allowed with respect to that property
2278	2278	17 under subparagraph (R) and for which the taxpayer was
2279	2279	18 allowed in any taxable year to make a subtraction
2280	2280	19 modification under subparagraph (R), then an amount
2281	2281	20 equal to that subtraction modification.
2282	2282	21 The taxpayer is required to make the addition
2283	2283	22 modification under this subparagraph only once with
2284	2284	23 respect to any one piece of property;
2285	2285	24 (G-12) An amount equal to the amount otherwise
2286	2286	25 allowed as a deduction in computing base income for
2287	2287	26 interest paid, accrued, or incurred, directly or
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292
2293	2293	HB1573 - 63 - LRB104 06505 HLH 16541 b
2294	2294
2295	2295
2296	2296	HB1573- 64 -LRB104 06505 HLH 16541 b HB1573 - 64 - LRB104 06505 HLH 16541 b
2297	2297	HB1573 - 64 - LRB104 06505 HLH 16541 b
2298	2298	1 indirectly, (i) for taxable years ending on or after
2299	2299	2 December 31, 2004, to a foreign person who would be a
2300	2300	3 member of the same unitary business group but for the
2301	2301	4 fact that the foreign person's business activity
2302	2302	5 outside the United States is 80% or more of the foreign
2303	2303	6 person's total business activity and (ii) for taxable
2304	2304	7 years ending on or after December 31, 2008, to a person
2305	2305	8 who would be a member of the same unitary business
2306	2306	9 group but for the fact that the person is prohibited
2307	2307	10 under Section 1501(a)(27) from being included in the
2308	2308	11 unitary business group because he or she is ordinarily
2309	2309	12 required to apportion business income under different
2310	2310	13 subsections of Section 304. The addition modification
2311	2311	14 required by this subparagraph shall be reduced to the
2312	2312	15 extent that dividends were included in base income of
2313	2313	16 the unitary group for the same taxable year and
2314	2314	17 received by the taxpayer or by a member of the
2315	2315	18 taxpayer's unitary business group (including amounts
2316	2316	19 included in gross income pursuant to Sections 951
2317	2317	20 through 964 of the Internal Revenue Code and amounts
2318	2318	21 included in gross income under Section 78 of the
2319	2319	22 Internal Revenue Code) with respect to the stock of
2320	2320	23 the same person to whom the interest was paid,
2321	2321	24 accrued, or incurred.
2322	2322	25 This paragraph shall not apply to the following:
2323	2323	26 (i) an item of interest paid, accrued, or
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328
2329	2329	HB1573 - 64 - LRB104 06505 HLH 16541 b
2330	2330
2331	2331
2332	2332	HB1573- 65 -LRB104 06505 HLH 16541 b HB1573 - 65 - LRB104 06505 HLH 16541 b
2333	2333	HB1573 - 65 - LRB104 06505 HLH 16541 b
2334	2334	1 incurred, directly or indirectly, to a person who
2335	2335	2 is subject in a foreign country or state, other
2336	2336	3 than a state which requires mandatory unitary
2337	2337	4 reporting, to a tax on or measured by net income
2338	2338	5 with respect to such interest; or
2339	2339	6 (ii) an item of interest paid, accrued, or
2340	2340	7 incurred, directly or indirectly, to a person if
2341	2341	8 the taxpayer can establish, based on a
2342	2342	9 preponderance of the evidence, both of the
2343	2343	10 following:
2344	2344	11 (a) the person, during the same taxable
2345	2345	12 year, paid, accrued, or incurred, the interest
2346	2346	13 to a person that is not a related member, and
2347	2347	14 (b) the transaction giving rise to the
2348	2348	15 interest expense between the taxpayer and the
2349	2349	16 person did not have as a principal purpose the
2350	2350	17 avoidance of Illinois income tax, and is paid
2351	2351	18 pursuant to a contract or agreement that
2352	2352	19 reflects an arm's-length interest rate and
2353	2353	20 terms; or
2354	2354	21 (iii) the taxpayer can establish, based on
2355	2355	22 clear and convincing evidence, that the interest
2356	2356	23 paid, accrued, or incurred relates to a contract
2357	2357	24 or agreement entered into at arm's-length rates
2358	2358	25 and terms and the principal purpose for the
2359	2359	26 payment is not federal or Illinois tax avoidance;
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364
2365	2365	HB1573 - 65 - LRB104 06505 HLH 16541 b
2366	2366
2367	2367
2368	2368	HB1573- 66 -LRB104 06505 HLH 16541 b HB1573 - 66 - LRB104 06505 HLH 16541 b
2369	2369	HB1573 - 66 - LRB104 06505 HLH 16541 b
2370	2370	1 or
2371	2371	2 (iv) an item of interest paid, accrued, or
2372	2372	3 incurred, directly or indirectly, to a person if
2373	2373	4 the taxpayer establishes by clear and convincing
2374	2374	5 evidence that the adjustments are unreasonable; or
2375	2375	6 if the taxpayer and the Director agree in writing
2376	2376	7 to the application or use of an alternative method
2377	2377	8 of apportionment under Section 304(f).
2378	2378	9 Nothing in this subsection shall preclude the
2379	2379	10 Director from making any other adjustment
2380	2380	11 otherwise allowed under Section 404 of this Act
2381	2381	12 for any tax year beginning after the effective
2382	2382	13 date of this amendment provided such adjustment is
2383	2383	14 made pursuant to regulation adopted by the
2384	2384	15 Department and such regulations provide methods
2385	2385	16 and standards by which the Department will utilize
2386	2386	17 its authority under Section 404 of this Act;
2387	2387	18 (G-13) An amount equal to the amount of intangible
2388	2388	19 expenses and costs otherwise allowed as a deduction in
2389	2389	20 computing base income, and that were paid, accrued, or
2390	2390	21 incurred, directly or indirectly, (i) for taxable
2391	2391	22 years ending on or after December 31, 2004, to a
2392	2392	23 foreign person who would be a member of the same
2393	2393	24 unitary business group but for the fact that the
2394	2394	25 foreign person's business activity outside the United
2395	2395	26 States is 80% or more of that person's total business
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400
2401	2401	HB1573 - 66 - LRB104 06505 HLH 16541 b
2402	2402
2403	2403
2404	2404	HB1573- 67 -LRB104 06505 HLH 16541 b HB1573 - 67 - LRB104 06505 HLH 16541 b
2405	2405	HB1573 - 67 - LRB104 06505 HLH 16541 b
2406	2406	1 activity and (ii) for taxable years ending on or after
2407	2407	2 December 31, 2008, to a person who would be a member of
2408	2408	3 the same unitary business group but for the fact that
2409	2409	4 the person is prohibited under Section 1501(a)(27)
2410	2410	5 from being included in the unitary business group
2411	2411	6 because he or she is ordinarily required to apportion
2412	2412	7 business income under different subsections of Section
2413	2413	8 304. The addition modification required by this
2414	2414	9 subparagraph shall be reduced to the extent that
2415	2415	10 dividends were included in base income of the unitary
2416	2416	11 group for the same taxable year and received by the
2417	2417	12 taxpayer or by a member of the taxpayer's unitary
2418	2418	13 business group (including amounts included in gross
2419	2419	14 income pursuant to Sections 951 through 964 of the
2420	2420	15 Internal Revenue Code and amounts included in gross
2421	2421	16 income under Section 78 of the Internal Revenue Code)
2422	2422	17 with respect to the stock of the same person to whom
2423	2423	18 the intangible expenses and costs were directly or
2424	2424	19 indirectly paid, incurred, or accrued. The preceding
2425	2425	20 sentence shall not apply to the extent that the same
2426	2426	21 dividends caused a reduction to the addition
2427	2427	22 modification required under Section 203(c)(2)(G-12) of
2428	2428	23 this Act. As used in this subparagraph, the term
2429	2429	24 "intangible expenses and costs" includes: (1)
2430	2430	25 expenses, losses, and costs for or related to the
2431	2431	26 direct or indirect acquisition, use, maintenance or
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436
2437	2437	HB1573 - 67 - LRB104 06505 HLH 16541 b
2438	2438
2439	2439
2440	2440	HB1573- 68 -LRB104 06505 HLH 16541 b HB1573 - 68 - LRB104 06505 HLH 16541 b
2441	2441	HB1573 - 68 - LRB104 06505 HLH 16541 b
2442	2442	1 management, ownership, sale, exchange, or any other
2443	2443	2 disposition of intangible property; (2) losses
2444	2444	3 incurred, directly or indirectly, from factoring
2445	2445	4 transactions or discounting transactions; (3) royalty,
2446	2446	5 patent, technical, and copyright fees; (4) licensing
2447	2447	6 fees; and (5) other similar expenses and costs. For
2448	2448	7 purposes of this subparagraph, "intangible property"
2449	2449	8 includes patents, patent applications, trade names,
2450	2450	9 trademarks, service marks, copyrights, mask works,
2451	2451	10 trade secrets, and similar types of intangible assets.
2452	2452	11 This paragraph shall not apply to the following:
2453	2453	12 (i) any item of intangible expenses or costs
2454	2454	13 paid, accrued, or incurred, directly or
2455	2455	14 indirectly, from a transaction with a person who
2456	2456	15 is subject in a foreign country or state, other
2457	2457	16 than a state which requires mandatory unitary
2458	2458	17 reporting, to a tax on or measured by net income
2459	2459	18 with respect to such item; or
2460	2460	19 (ii) any item of intangible expense or cost
2461	2461	20 paid, accrued, or incurred, directly or
2462	2462	21 indirectly, if the taxpayer can establish, based
2463	2463	22 on a preponderance of the evidence, both of the
2464	2464	23 following:
2465	2465	24 (a) the person during the same taxable
2466	2466	25 year paid, accrued, or incurred, the
2467	2467	26 intangible expense or cost to a person that is
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472
2473	2473	HB1573 - 68 - LRB104 06505 HLH 16541 b
2474	2474
2475	2475
2476	2476	HB1573- 69 -LRB104 06505 HLH 16541 b HB1573 - 69 - LRB104 06505 HLH 16541 b
2477	2477	HB1573 - 69 - LRB104 06505 HLH 16541 b
2478	2478	1 not a related member, and
2479	2479	2 (b) the transaction giving rise to the
2480	2480	3 intangible expense or cost between the
2481	2481	4 taxpayer and the person did not have as a
2482	2482	5 principal purpose the avoidance of Illinois
2483	2483	6 income tax, and is paid pursuant to a contract
2484	2484	7 or agreement that reflects arm's-length terms;
2485	2485	8 or
2486	2486	9 (iii) any item of intangible expense or cost
2487	2487	10 paid, accrued, or incurred, directly or
2488	2488	11 indirectly, from a transaction with a person if
2489	2489	12 the taxpayer establishes by clear and convincing
2490	2490	13 evidence, that the adjustments are unreasonable;
2491	2491	14 or if the taxpayer and the Director agree in
2492	2492	15 writing to the application or use of an
2493	2493	16 alternative method of apportionment under Section
2494	2494	17 304(f);
2495	2495	18 Nothing in this subsection shall preclude the
2496	2496	19 Director from making any other adjustment
2497	2497	20 otherwise allowed under Section 404 of this Act
2498	2498	21 for any tax year beginning after the effective
2499	2499	22 date of this amendment provided such adjustment is
2500	2500	23 made pursuant to regulation adopted by the
2501	2501	24 Department and such regulations provide methods
2502	2502	25 and standards by which the Department will utilize
2503	2503	26 its authority under Section 404 of this Act;
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508
2509	2509	HB1573 - 69 - LRB104 06505 HLH 16541 b
2510	2510
2511	2511
2512	2512	HB1573- 70 -LRB104 06505 HLH 16541 b HB1573 - 70 - LRB104 06505 HLH 16541 b
2513	2513	HB1573 - 70 - LRB104 06505 HLH 16541 b
2514	2514	1 (G-14) For taxable years ending on or after
2515	2515	2 December 31, 2008, an amount equal to the amount of
2516	2516	3 insurance premium expenses and costs otherwise allowed
2517	2517	4 as a deduction in computing base income, and that were
2518	2518	5 paid, accrued, or incurred, directly or indirectly, to
2519	2519	6 a person who would be a member of the same unitary
2520	2520	7 business group but for the fact that the person is
2521	2521	8 prohibited under Section 1501(a)(27) from being
2522	2522	9 included in the unitary business group because he or
2523	2523	10 she is ordinarily required to apportion business
2524	2524	11 income under different subsections of Section 304. The
2525	2525	12 addition modification required by this subparagraph
2526	2526	13 shall be reduced to the extent that dividends were
2527	2527	14 included in base income of the unitary group for the
2528	2528	15 same taxable year and received by the taxpayer or by a
2529	2529	16 member of the taxpayer's unitary business group
2530	2530	17 (including amounts included in gross income under
2531	2531	18 Sections 951 through 964 of the Internal Revenue Code
2532	2532	19 and amounts included in gross income under Section 78
2533	2533	20 of the Internal Revenue Code) with respect to the
2534	2534	21 stock of the same person to whom the premiums and costs
2535	2535	22 were directly or indirectly paid, incurred, or
2536	2536	23 accrued. The preceding sentence does not apply to the
2537	2537	24 extent that the same dividends caused a reduction to
2538	2538	25 the addition modification required under Section
2539	2539	26 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2540	2540
2541	2541
2542	2542
2543	2543
2544	2544
2545	2545	HB1573 - 70 - LRB104 06505 HLH 16541 b
2546	2546
2547	2547
2548	2548	HB1573- 71 -LRB104 06505 HLH 16541 b HB1573 - 71 - LRB104 06505 HLH 16541 b
2549	2549	HB1573 - 71 - LRB104 06505 HLH 16541 b
2550	2550	1 Act;
2551	2551	2 (G-15) An amount equal to the credit allowable to
2552	2552	3 the taxpayer under Section 218(a) of this Act,
2553	2553	4 determined without regard to Section 218(c) of this
2554	2554	5 Act;
2555	2555	6 (G-16) For taxable years ending on or after
2556	2556	7 December 31, 2017, an amount equal to the deduction
2557	2557	8 allowed under Section 199 of the Internal Revenue Code
2558	2558	9 for the taxable year;
2559	2559	10 (G-17) the amount that is claimed as a federal
2560	2560	11 deduction when computing the taxpayer's federal
2561	2561	12 taxable income for the taxable year and that is
2562	2562	13 attributable to an endowment gift for which the
2563	2563	14 taxpayer receives a credit under the Illinois Gives
2564	2564	15 Tax Credit Act;
2565	2565	16 and by deducting from the total so obtained the sum of the
2566	2566	17 following amounts:
2567	2567	18 (H) An amount equal to all amounts included in
2568	2568	19 such total pursuant to the provisions of Sections
2569	2569	20 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2570	2570	21 of the Internal Revenue Code or included in such total
2571	2571	22 as distributions under the provisions of any
2572	2572	23 retirement or disability plan for employees of any
2573	2573	24 governmental agency or unit, or retirement payments to
2574	2574	25 retired partners, which payments are excluded in
2575	2575	26 computing net earnings from self employment by Section
2576	2576
2577	2577
2578	2578
2579	2579
2580	2580
2581	2581	HB1573 - 71 - LRB104 06505 HLH 16541 b
2582	2582
2583	2583
2584	2584	HB1573- 72 -LRB104 06505 HLH 16541 b HB1573 - 72 - LRB104 06505 HLH 16541 b
2585	2585	HB1573 - 72 - LRB104 06505 HLH 16541 b
2586	2586	1 1402 of the Internal Revenue Code and regulations
2587	2587	2 adopted pursuant thereto;
2588	2588	3 (I) The valuation limitation amount;
2589	2589	4 (J) An amount equal to the amount of any tax
2590	2590	5 imposed by this Act which was refunded to the taxpayer
2591	2591	6 and included in such total for the taxable year;
2592	2592	7 (K) An amount equal to all amounts included in
2593	2593	8 taxable income as modified by subparagraphs (A), (B),
2594	2594	9 (C), (D), (E), (F) and (G) which are exempt from
2595	2595	10 taxation by this State either by reason of its
2596	2596	11 statutes or Constitution or by reason of the
2597	2597	12 Constitution, treaties or statutes of the United
2598	2598	13 States; provided that, in the case of any statute of
2599	2599	14 this State that exempts income derived from bonds or
2600	2600	15 other obligations from the tax imposed under this Act,
2601	2601	16 the amount exempted shall be the interest net of bond
2602	2602	17 premium amortization;
2603	2603	18 (L) With the exception of any amounts subtracted
2604	2604	19 under subparagraph (K), an amount equal to the sum of
2605	2605	20 all amounts disallowed as deductions by (i) Sections
2606	2606	21 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2607	2607	22 and all amounts of expenses allocable to interest and
2608	2608	23 disallowed as deductions by Section 265(a)(1) of the
2609	2609	24 Internal Revenue Code; and (ii) for taxable years
2610	2610	25 ending on or after August 13, 1999, Sections
2611	2611	26 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2612	2612
2613	2613
2614	2614
2615	2615
2616	2616
2617	2617	HB1573 - 72 - LRB104 06505 HLH 16541 b
2618	2618
2619	2619
2620	2620	HB1573- 73 -LRB104 06505 HLH 16541 b HB1573 - 73 - LRB104 06505 HLH 16541 b
2621	2621	HB1573 - 73 - LRB104 06505 HLH 16541 b
2622	2622	1 Internal Revenue Code, plus, (iii) for taxable years
2623	2623	2 ending on or after December 31, 2011, Section
2624	2624	3 45G(e)(3) of the Internal Revenue Code and, for
2625	2625	4 taxable years ending on or after December 31, 2008,
2626	2626	5 any amount included in gross income under Section 87
2627	2627	6 of the Internal Revenue Code; the provisions of this
2628	2628	7 subparagraph are exempt from the provisions of Section
2629	2629	8 250;
2630	2630	9 (M) An amount equal to those dividends included in
2631	2631	10 such total which were paid by a corporation which
2632	2632	11 conducts business operations in a River Edge
2633	2633	12 Redevelopment Zone or zones created under the River
2634	2634	13 Edge Redevelopment Zone Act and conducts substantially
2635	2635	14 all of its operations in a River Edge Redevelopment
2636	2636	15 Zone or zones. This subparagraph (M) is exempt from
2637	2637	16 the provisions of Section 250;
2638	2638	17 (N) An amount equal to any contribution made to a
2639	2639	18 job training project established pursuant to the Tax
2640	2640	19 Increment Allocation Redevelopment Act;
2641	2641	20 (O) An amount equal to those dividends included in
2642	2642	21 such total that were paid by a corporation that
2643	2643	22 conducts business operations in a federally designated
2644	2644	23 Foreign Trade Zone or Sub-Zone and that is designated
2645	2645	24 a High Impact Business located in Illinois; provided
2646	2646	25 that dividends eligible for the deduction provided in
2647	2647	26 subparagraph (M) of paragraph (2) of this subsection
2648	2648
2649	2649
2650	2650
2651	2651
2652	2652
2653	2653	HB1573 - 73 - LRB104 06505 HLH 16541 b
2654	2654
2655	2655
2656	2656	HB1573- 74 -LRB104 06505 HLH 16541 b HB1573 - 74 - LRB104 06505 HLH 16541 b
2657	2657	HB1573 - 74 - LRB104 06505 HLH 16541 b
2658	2658	1 shall not be eligible for the deduction provided under
2659	2659	2 this subparagraph (O);
2660	2660	3 (P) An amount equal to the amount of the deduction
2661	2661	4 used to compute the federal income tax credit for
2662	2662	5 restoration of substantial amounts held under claim of
2663	2663	6 right for the taxable year pursuant to Section 1341 of
2664	2664	7 the Internal Revenue Code;
2665	2665	8 (Q) For taxable year 1999 and thereafter, an
2666	2666	9 amount equal to the amount of any (i) distributions,
2667	2667	10 to the extent includible in gross income for federal
2668	2668	11 income tax purposes, made to the taxpayer because of
2669	2669	12 his or her status as a victim of persecution for racial
2670	2670	13 or religious reasons by Nazi Germany or any other Axis
2671	2671	14 regime or as an heir of the victim and (ii) items of
2672	2672	15 income, to the extent includible in gross income for
2673	2673	16 federal income tax purposes, attributable to, derived
2674	2674	17 from or in any way related to assets stolen from,
2675	2675	18 hidden from, or otherwise lost to a victim of
2676	2676	19 persecution for racial or religious reasons by Nazi
2677	2677	20 Germany or any other Axis regime immediately prior to,
2678	2678	21 during, and immediately after World War II, including,
2679	2679	22 but not limited to, interest on the proceeds
2680	2680	23 receivable as insurance under policies issued to a
2681	2681	24 victim of persecution for racial or religious reasons
2682	2682	25 by Nazi Germany or any other Axis regime by European
2683	2683	26 insurance companies immediately prior to and during
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688
2689	2689	HB1573 - 74 - LRB104 06505 HLH 16541 b
2690	2690
2691	2691
2692	2692	HB1573- 75 -LRB104 06505 HLH 16541 b HB1573 - 75 - LRB104 06505 HLH 16541 b
2693	2693	HB1573 - 75 - LRB104 06505 HLH 16541 b
2694	2694	1 World War II; provided, however, this subtraction from
2695	2695	2 federal adjusted gross income does not apply to assets
2696	2696	3 acquired with such assets or with the proceeds from
2697	2697	4 the sale of such assets; provided, further, this
2698	2698	5 paragraph shall only apply to a taxpayer who was the
2699	2699	6 first recipient of such assets after their recovery
2700	2700	7 and who is a victim of persecution for racial or
2701	2701	8 religious reasons by Nazi Germany or any other Axis
2702	2702	9 regime or as an heir of the victim. The amount of and
2703	2703	10 the eligibility for any public assistance, benefit, or
2704	2704	11 similar entitlement is not affected by the inclusion
2705	2705	12 of items (i) and (ii) of this paragraph in gross income
2706	2706	13 for federal income tax purposes. This paragraph is
2707	2707	14 exempt from the provisions of Section 250;
2708	2708	15 (R) For taxable years 2001 and thereafter, for the
2709	2709	16 taxable year in which the bonus depreciation deduction
2710	2710	17 is taken on the taxpayer's federal income tax return
2711	2711	18 under subsection (k) of Section 168 of the Internal
2712	2712	19 Revenue Code and for each applicable taxable year
2713	2713	20 thereafter, an amount equal to "x", where:
2714	2714	21 (1) "y" equals the amount of the depreciation
2715	2715	22 deduction taken for the taxable year on the
2716	2716	23 taxpayer's federal income tax return on property
2717	2717	24 for which the bonus depreciation deduction was
2718	2718	25 taken in any year under subsection (k) of Section
2719	2719	26 168 of the Internal Revenue Code, but not
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724
2725	2725	HB1573 - 75 - LRB104 06505 HLH 16541 b
2726	2726
2727	2727
2728	2728	HB1573- 76 -LRB104 06505 HLH 16541 b HB1573 - 76 - LRB104 06505 HLH 16541 b
2729	2729	HB1573 - 76 - LRB104 06505 HLH 16541 b
2730	2730	1 including the bonus depreciation deduction;
2731	2731	2 (2) for taxable years ending on or before
2732	2732	3 December 31, 2005, "x" equals "y" multiplied by 30
2733	2733	4 and then divided by 70 (or "y" multiplied by
2734	2734	5 0.429); and
2735	2735	6 (3) for taxable years ending after December
2736	2736	7 31, 2005:
2737	2737	8 (i) for property on which a bonus
2738	2738	9 depreciation deduction of 30% of the adjusted
2739	2739	10 basis was taken, "x" equals "y" multiplied by
2740	2740	11 30 and then divided by 70 (or "y" multiplied
2741	2741	12 by 0.429);
2742	2742	13 (ii) for property on which a bonus
2743	2743	14 depreciation deduction of 50% of the adjusted
2744	2744	15 basis was taken, "x" equals "y" multiplied by
2745	2745	16 1.0;
2746	2746	17 (iii) for property on which a bonus
2747	2747	18 depreciation deduction of 100% of the adjusted
2748	2748	19 basis was taken in a taxable year ending on or
2749	2749	20 after December 31, 2021, "x" equals the
2750	2750	21 depreciation deduction that would be allowed
2751	2751	22 on that property if the taxpayer had made the
2752	2752	23 election under Section 168(k)(7) of the
2753	2753	24 Internal Revenue Code to not claim bonus
2754	2754	25 depreciation on that property; and
2755	2755	26 (iv) for property on which a bonus
2756	2756
2757	2757
2758	2758
2759	2759
2760	2760
2761	2761	HB1573 - 76 - LRB104 06505 HLH 16541 b
2762	2762
2763	2763
2764	2764	HB1573- 77 -LRB104 06505 HLH 16541 b HB1573 - 77 - LRB104 06505 HLH 16541 b
2765	2765	HB1573 - 77 - LRB104 06505 HLH 16541 b
2766	2766	1 depreciation deduction of a percentage other
2767	2767	2 than 30%, 50% or 100% of the adjusted basis
2768	2768	3 was taken in a taxable year ending on or after
2769	2769	4 December 31, 2021, "x" equals "y" multiplied
2770	2770	5 by 100 times the percentage bonus depreciation
2771	2771	6 on the property (that is, 100(bonus%)) and
2772	2772	7 then divided by 100 times 1 minus the
2773	2773	8 percentage bonus depreciation on the property
2774	2774	9 (that is, 100(1-bonus%)).
2775	2775	10 The aggregate amount deducted under this
2776	2776	11 subparagraph in all taxable years for any one piece of
2777	2777	12 property may not exceed the amount of the bonus
2778	2778	13 depreciation deduction taken on that property on the
2779	2779	14 taxpayer's federal income tax return under subsection
2780	2780	15 (k) of Section 168 of the Internal Revenue Code. This
2781	2781	16 subparagraph (R) is exempt from the provisions of
2782	2782	17 Section 250;
2783	2783	18 (S) If the taxpayer sells, transfers, abandons, or
2784	2784	19 otherwise disposes of property for which the taxpayer
2785	2785	20 was required in any taxable year to make an addition
2786	2786	21 modification under subparagraph (G-10), then an amount
2787	2787	22 equal to that addition modification.
2788	2788	23 If the taxpayer continues to own property through
2789	2789	24 the last day of the last tax year for which a
2790	2790	25 subtraction is allowed with respect to that property
2791	2791	26 under subparagraph (R) and for which the taxpayer was
2792	2792
2793	2793
2794	2794
2795	2795
2796	2796
2797	2797	HB1573 - 77 - LRB104 06505 HLH 16541 b
2798	2798
2799	2799
2800	2800	HB1573- 78 -LRB104 06505 HLH 16541 b HB1573 - 78 - LRB104 06505 HLH 16541 b
2801	2801	HB1573 - 78 - LRB104 06505 HLH 16541 b
2802	2802	1 required in any taxable year to make an addition
2803	2803	2 modification under subparagraph (G-10), then an amount
2804	2804	3 equal to that addition modification.
2805	2805	4 The taxpayer is allowed to take the deduction
2806	2806	5 under this subparagraph only once with respect to any
2807	2807	6 one piece of property.
2808	2808	7 This subparagraph (S) is exempt from the
2809	2809	8 provisions of Section 250;
2810	2810	9 (T) The amount of (i) any interest income (net of
2811	2811	10 the deductions allocable thereto) taken into account
2812	2812	11 for the taxable year with respect to a transaction
2813	2813	12 with a taxpayer that is required to make an addition
2814	2814	13 modification with respect to such transaction under
2815	2815	14 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2816	2816	15 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2817	2817	16 the amount of such addition modification and (ii) any
2818	2818	17 income from intangible property (net of the deductions
2819	2819	18 allocable thereto) taken into account for the taxable
2820	2820	19 year with respect to a transaction with a taxpayer
2821	2821	20 that is required to make an addition modification with
2822	2822	21 respect to such transaction under Section
2823	2823	22 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2824	2824	23 203(d)(2)(D-8), but not to exceed the amount of such
2825	2825	24 addition modification. This subparagraph (T) is exempt
2826	2826	25 from the provisions of Section 250;
2827	2827	26 (U) An amount equal to the interest income taken
2828	2828
2829	2829
2830	2830
2831	2831
2832	2832
2833	2833	HB1573 - 78 - LRB104 06505 HLH 16541 b
2834	2834
2835	2835
2836	2836	HB1573- 79 -LRB104 06505 HLH 16541 b HB1573 - 79 - LRB104 06505 HLH 16541 b
2837	2837	HB1573 - 79 - LRB104 06505 HLH 16541 b
2838	2838	1 into account for the taxable year (net of the
2839	2839	2 deductions allocable thereto) with respect to
2840	2840	3 transactions with (i) a foreign person who would be a
2841	2841	4 member of the taxpayer's unitary business group but
2842	2842	5 for the fact the foreign person's business activity
2843	2843	6 outside the United States is 80% or more of that
2844	2844	7 person's total business activity and (ii) for taxable
2845	2845	8 years ending on or after December 31, 2008, to a person
2846	2846	9 who would be a member of the same unitary business
2847	2847	10 group but for the fact that the person is prohibited
2848	2848	11 under Section 1501(a)(27) from being included in the
2849	2849	12 unitary business group because he or she is ordinarily
2850	2850	13 required to apportion business income under different
2851	2851	14 subsections of Section 304, but not to exceed the
2852	2852	15 addition modification required to be made for the same
2853	2853	16 taxable year under Section 203(c)(2)(G-12) for
2854	2854	17 interest paid, accrued, or incurred, directly or
2855	2855	18 indirectly, to the same person. This subparagraph (U)
2856	2856	19 is exempt from the provisions of Section 250;
2857	2857	20 (V) An amount equal to the income from intangible
2858	2858	21 property taken into account for the taxable year (net
2859	2859	22 of the deductions allocable thereto) with respect to
2860	2860	23 transactions with (i) a foreign person who would be a
2861	2861	24 member of the taxpayer's unitary business group but
2862	2862	25 for the fact that the foreign person's business
2863	2863	26 activity outside the United States is 80% or more of
2864	2864
2865	2865
2866	2866
2867	2867
2868	2868
2869	2869	HB1573 - 79 - LRB104 06505 HLH 16541 b
2870	2870
2871	2871
2872	2872	HB1573- 80 -LRB104 06505 HLH 16541 b HB1573 - 80 - LRB104 06505 HLH 16541 b
2873	2873	HB1573 - 80 - LRB104 06505 HLH 16541 b
2874	2874	1 that person's total business activity and (ii) for
2875	2875	2 taxable years ending on or after December 31, 2008, to
2876	2876	3 a person who would be a member of the same unitary
2877	2877	4 business group but for the fact that the person is
2878	2878	5 prohibited under Section 1501(a)(27) from being
2879	2879	6 included in the unitary business group because he or
2880	2880	7 she is ordinarily required to apportion business
2881	2881	8 income under different subsections of Section 304, but
2882	2882	9 not to exceed the addition modification required to be
2883	2883	10 made for the same taxable year under Section
2884	2884	11 203(c)(2)(G-13) for intangible expenses and costs
2885	2885	12 paid, accrued, or incurred, directly or indirectly, to
2886	2886	13 the same foreign person. This subparagraph (V) is
2887	2887	14 exempt from the provisions of Section 250;
2888	2888	15 (W) in the case of an estate, an amount equal to
2889	2889	16 all amounts included in such total pursuant to the
2890	2890	17 provisions of Section 111 of the Internal Revenue Code
2891	2891	18 as a recovery of items previously deducted by the
2892	2892	19 decedent from adjusted gross income in the computation
2893	2893	20 of taxable income. This subparagraph (W) is exempt
2894	2894	21 from Section 250;
2895	2895	22 (X) an amount equal to the refund included in such
2896	2896	23 total of any tax deducted for federal income tax
2897	2897	24 purposes, to the extent that deduction was added back
2898	2898	25 under subparagraph (F). This subparagraph (X) is
2899	2899	26 exempt from the provisions of Section 250;
2900	2900
2901	2901
2902	2902
2903	2903
2904	2904
2905	2905	HB1573 - 80 - LRB104 06505 HLH 16541 b
2906	2906
2907	2907
2908	2908	HB1573- 81 -LRB104 06505 HLH 16541 b HB1573 - 81 - LRB104 06505 HLH 16541 b
2909	2909	HB1573 - 81 - LRB104 06505 HLH 16541 b
2910	2910	1 (Y) For taxable years ending on or after December
2911	2911	2 31, 2011, in the case of a taxpayer who was required to
2912	2912	3 add back any insurance premiums under Section
2913	2913	4 203(c)(2)(G-14), such taxpayer may elect to subtract
2914	2914	5 that part of a reimbursement received from the
2915	2915	6 insurance company equal to the amount of the expense
2916	2916	7 or loss (including expenses incurred by the insurance
2917	2917	8 company) that would have been taken into account as a
2918	2918	9 deduction for federal income tax purposes if the
2919	2919	10 expense or loss had been uninsured. If a taxpayer
2920	2920	11 makes the election provided for by this subparagraph
2921	2921	12 (Y), the insurer to which the premiums were paid must
2922	2922	13 add back to income the amount subtracted by the
2923	2923	14 taxpayer pursuant to this subparagraph (Y). This
2924	2924	15 subparagraph (Y) is exempt from the provisions of
2925	2925	16 Section 250;
2926	2926	17 (Z) For taxable years beginning after December 31,
2927	2927	18 2018 and before January 1, 2026, the amount of excess
2928	2928	19 business loss of the taxpayer disallowed as a
2929	2929	20 deduction by Section 461(l)(1)(B) of the Internal
2930	2930	21 Revenue Code; and
2931	2931	22 (AA) For taxable years beginning on or after
2932	2932	23 January 1, 2023, for any cannabis establishment
2933	2933	24 operating in this State and licensed under the
2934	2934	25 Cannabis Regulation and Tax Act or any cannabis
2935	2935	26 cultivation center or medical cannabis dispensing
2936	2936
2937	2937
2938	2938
2939	2939
2940	2940
2941	2941	HB1573 - 81 - LRB104 06505 HLH 16541 b
2942	2942
2943	2943
2944	2944	HB1573- 82 -LRB104 06505 HLH 16541 b HB1573 - 82 - LRB104 06505 HLH 16541 b
2945	2945	HB1573 - 82 - LRB104 06505 HLH 16541 b
2946	2946	1 organization operating in this State and licensed
2947	2947	2 under the Compassionate Use of Medical Cannabis
2948	2948	3 Program Act, an amount equal to the deductions that
2949	2949	4 were disallowed under Section 280E of the Internal
2950	2950	5 Revenue Code for the taxable year and that would not be
2951	2951	6 added back under this subsection. The provisions of
2952	2952	7 this subparagraph (AA) are exempt from the provisions
2953	2953	8 of Section 250; and .
2954	2954	9 (BB) For taxable years beginning on or after
2955	2955	10 January 1, 2026, any amount paid by the taxpayer's
2956	2956	11 employer on behalf of the taxpayer as part of an
2957	2957	12 educational assistance program, as defined in Section
2958	2958	13 127 of the Internal Revenue Code, regardless of
2959	2959	14 whether those amounts are included in the taxpayer's
2960	2960	15 federal adjusted gross income for the taxable year;
2961	2961	16 the deduction under this subparagraph shall apply only
2962	2962	17 to the first $5,250 of such assistance so furnished to
2963	2963	18 any individual; this subparagraph is exempt from the
2964	2964	19 provisions of Section 250.
2965	2965	20 (3) Limitation. The amount of any modification
2966	2966	21 otherwise required under this subsection shall, under
2967	2967	22 regulations prescribed by the Department, be adjusted by
2968	2968	23 any amounts included therein which were properly paid,
2969	2969	24 credited, or required to be distributed, or permanently
2970	2970	25 set aside for charitable purposes pursuant to Internal
2971	2971	26 Revenue Code Section 642(c) during the taxable year.
2972	2972
2973	2973
2974	2974
2975	2975
2976	2976
2977	2977	HB1573 - 82 - LRB104 06505 HLH 16541 b
2978	2978
2979	2979
2980	2980	HB1573- 83 -LRB104 06505 HLH 16541 b HB1573 - 83 - LRB104 06505 HLH 16541 b
2981	2981	HB1573 - 83 - LRB104 06505 HLH 16541 b
2982	2982	1 (d) Partnerships.
2983	2983	2 (1) In general. In the case of a partnership, base
2984	2984	3 income means an amount equal to the taxpayer's taxable
2985	2985	4 income for the taxable year as modified by paragraph (2).
2986	2986	5 (2) Modifications. The taxable income referred to in
2987	2987	6 paragraph (1) shall be modified by adding thereto the sum
2988	2988	7 of the following amounts:
2989	2989	8 (A) An amount equal to all amounts paid or accrued
2990	2990	9 to the taxpayer as interest or dividends during the
2991	2991	10 taxable year to the extent excluded from gross income
2992	2992	11 in the computation of taxable income;
2993	2993	12 (B) An amount equal to the amount of tax imposed by
2994	2994	13 this Act to the extent deducted from gross income for
2995	2995	14 the taxable year;
2996	2996	15 (C) The amount of deductions allowed to the
2997	2997	16 partnership pursuant to Section 707 (c) of the
2998	2998	17 Internal Revenue Code in calculating its taxable
2999	2999	18 income;
3000	3000	19 (D) An amount equal to the amount of the capital
3001	3001	20 gain deduction allowable under the Internal Revenue
3002	3002	21 Code, to the extent deducted from gross income in the
3003	3003	22 computation of taxable income;
3004	3004	23 (D-5) For taxable years 2001 and thereafter, an
3005	3005	24 amount equal to the bonus depreciation deduction taken
3006	3006	25 on the taxpayer's federal income tax return for the
3007	3007
3008	3008
3009	3009
3010	3010
3011	3011
3012	3012	HB1573 - 83 - LRB104 06505 HLH 16541 b
3013	3013
3014	3014
3015	3015	HB1573- 84 -LRB104 06505 HLH 16541 b HB1573 - 84 - LRB104 06505 HLH 16541 b
3016	3016	HB1573 - 84 - LRB104 06505 HLH 16541 b
3017	3017	1 taxable year under subsection (k) of Section 168 of
3018	3018	2 the Internal Revenue Code;
3019	3019	3 (D-6) If the taxpayer sells, transfers, abandons,
3020	3020	4 or otherwise disposes of property for which the
3021	3021	5 taxpayer was required in any taxable year to make an
3022	3022	6 addition modification under subparagraph (D-5), then
3023	3023	7 an amount equal to the aggregate amount of the
3024	3024	8 deductions taken in all taxable years under
3025	3025	9 subparagraph (O) with respect to that property.
3026	3026	10 If the taxpayer continues to own property through
3027	3027	11 the last day of the last tax year for which a
3028	3028	12 subtraction is allowed with respect to that property
3029	3029	13 under subparagraph (O) and for which the taxpayer was
3030	3030	14 allowed in any taxable year to make a subtraction
3031	3031	15 modification under subparagraph (O), then an amount
3032	3032	16 equal to that subtraction modification.
3033	3033	17 The taxpayer is required to make the addition
3034	3034	18 modification under this subparagraph only once with
3035	3035	19 respect to any one piece of property;
3036	3036	20 (D-7) An amount equal to the amount otherwise
3037	3037	21 allowed as a deduction in computing base income for
3038	3038	22 interest paid, accrued, or incurred, directly or
3039	3039	23 indirectly, (i) for taxable years ending on or after
3040	3040	24 December 31, 2004, to a foreign person who would be a
3041	3041	25 member of the same unitary business group but for the
3042	3042	26 fact the foreign person's business activity outside
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047
3048	3048	HB1573 - 84 - LRB104 06505 HLH 16541 b
3049	3049
3050	3050
3051	3051	HB1573- 85 -LRB104 06505 HLH 16541 b HB1573 - 85 - LRB104 06505 HLH 16541 b
3052	3052	HB1573 - 85 - LRB104 06505 HLH 16541 b
3053	3053	1 the United States is 80% or more of the foreign
3054	3054	2 person's total business activity and (ii) for taxable
3055	3055	3 years ending on or after December 31, 2008, to a person
3056	3056	4 who would be a member of the same unitary business
3057	3057	5 group but for the fact that the person is prohibited
3058	3058	6 under Section 1501(a)(27) from being included in the
3059	3059	7 unitary business group because he or she is ordinarily
3060	3060	8 required to apportion business income under different
3061	3061	9 subsections of Section 304. The addition modification
3062	3062	10 required by this subparagraph shall be reduced to the
3063	3063	11 extent that dividends were included in base income of
3064	3064	12 the unitary group for the same taxable year and
3065	3065	13 received by the taxpayer or by a member of the
3066	3066	14 taxpayer's unitary business group (including amounts
3067	3067	15 included in gross income pursuant to Sections 951
3068	3068	16 through 964 of the Internal Revenue Code and amounts
3069	3069	17 included in gross income under Section 78 of the
3070	3070	18 Internal Revenue Code) with respect to the stock of
3071	3071	19 the same person to whom the interest was paid,
3072	3072	20 accrued, or incurred.
3073	3073	21 This paragraph shall not apply to the following:
3074	3074	22 (i) an item of interest paid, accrued, or
3075	3075	23 incurred, directly or indirectly, to a person who
3076	3076	24 is subject in a foreign country or state, other
3077	3077	25 than a state which requires mandatory unitary
3078	3078	26 reporting, to a tax on or measured by net income
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083
3084	3084	HB1573 - 85 - LRB104 06505 HLH 16541 b
3085	3085
3086	3086
3087	3087	HB1573- 86 -LRB104 06505 HLH 16541 b HB1573 - 86 - LRB104 06505 HLH 16541 b
3088	3088	HB1573 - 86 - LRB104 06505 HLH 16541 b
3089	3089	1 with respect to such interest; or
3090	3090	2 (ii) an item of interest paid, accrued, or
3091	3091	3 incurred, directly or indirectly, to a person if
3092	3092	4 the taxpayer can establish, based on a
3093	3093	5 preponderance of the evidence, both of the
3094	3094	6 following:
3095	3095	7 (a) the person, during the same taxable
3096	3096	8 year, paid, accrued, or incurred, the interest
3097	3097	9 to a person that is not a related member, and
3098	3098	10 (b) the transaction giving rise to the
3099	3099	11 interest expense between the taxpayer and the
3100	3100	12 person did not have as a principal purpose the
3101	3101	13 avoidance of Illinois income tax, and is paid
3102	3102	14 pursuant to a contract or agreement that
3103	3103	15 reflects an arm's-length interest rate and
3104	3104	16 terms; or
3105	3105	17 (iii) the taxpayer can establish, based on
3106	3106	18 clear and convincing evidence, that the interest
3107	3107	19 paid, accrued, or incurred relates to a contract
3108	3108	20 or agreement entered into at arm's-length rates
3109	3109	21 and terms and the principal purpose for the
3110	3110	22 payment is not federal or Illinois tax avoidance;
3111	3111	23 or
3112	3112	24 (iv) an item of interest paid, accrued, or
3113	3113	25 incurred, directly or indirectly, to a person if
3114	3114	26 the taxpayer establishes by clear and convincing
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119
3120	3120	HB1573 - 86 - LRB104 06505 HLH 16541 b
3121	3121
3122	3122
3123	3123	HB1573- 87 -LRB104 06505 HLH 16541 b HB1573 - 87 - LRB104 06505 HLH 16541 b
3124	3124	HB1573 - 87 - LRB104 06505 HLH 16541 b
3125	3125	1 evidence that the adjustments are unreasonable; or
3126	3126	2 if the taxpayer and the Director agree in writing
3127	3127	3 to the application or use of an alternative method
3128	3128	4 of apportionment under Section 304(f).
3129	3129	5 Nothing in this subsection shall preclude the
3130	3130	6 Director from making any other adjustment
3131	3131	7 otherwise allowed under Section 404 of this Act
3132	3132	8 for any tax year beginning after the effective
3133	3133	9 date of this amendment provided such adjustment is
3134	3134	10 made pursuant to regulation adopted by the
3135	3135	11 Department and such regulations provide methods
3136	3136	12 and standards by which the Department will utilize
3137	3137	13 its authority under Section 404 of this Act; and
3138	3138	14 (D-8) An amount equal to the amount of intangible
3139	3139	15 expenses and costs otherwise allowed as a deduction in
3140	3140	16 computing base income, and that were paid, accrued, or
3141	3141	17 incurred, directly or indirectly, (i) for taxable
3142	3142	18 years ending on or after December 31, 2004, to a
3143	3143	19 foreign person who would be a member of the same
3144	3144	20 unitary business group but for the fact that the
3145	3145	21 foreign person's business activity outside the United
3146	3146	22 States is 80% or more of that person's total business
3147	3147	23 activity and (ii) for taxable years ending on or after
3148	3148	24 December 31, 2008, to a person who would be a member of
3149	3149	25 the same unitary business group but for the fact that
3150	3150	26 the person is prohibited under Section 1501(a)(27)
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155
3156	3156	HB1573 - 87 - LRB104 06505 HLH 16541 b
3157	3157
3158	3158
3159	3159	HB1573- 88 -LRB104 06505 HLH 16541 b HB1573 - 88 - LRB104 06505 HLH 16541 b
3160	3160	HB1573 - 88 - LRB104 06505 HLH 16541 b
3161	3161	1 from being included in the unitary business group
3162	3162	2 because he or she is ordinarily required to apportion
3163	3163	3 business income under different subsections of Section
3164	3164	4 304. The addition modification required by this
3165	3165	5 subparagraph shall be reduced to the extent that
3166	3166	6 dividends were included in base income of the unitary
3167	3167	7 group for the same taxable year and received by the
3168	3168	8 taxpayer or by a member of the taxpayer's unitary
3169	3169	9 business group (including amounts included in gross
3170	3170	10 income pursuant to Sections 951 through 964 of the
3171	3171	11 Internal Revenue Code and amounts included in gross
3172	3172	12 income under Section 78 of the Internal Revenue Code)
3173	3173	13 with respect to the stock of the same person to whom
3174	3174	14 the intangible expenses and costs were directly or
3175	3175	15 indirectly paid, incurred or accrued. The preceding
3176	3176	16 sentence shall not apply to the extent that the same
3177	3177	17 dividends caused a reduction to the addition
3178	3178	18 modification required under Section 203(d)(2)(D-7) of
3179	3179	19 this Act. As used in this subparagraph, the term
3180	3180	20 "intangible expenses and costs" includes (1) expenses,
3181	3181	21 losses, and costs for, or related to, the direct or
3182	3182	22 indirect acquisition, use, maintenance or management,
3183	3183	23 ownership, sale, exchange, or any other disposition of
3184	3184	24 intangible property; (2) losses incurred, directly or
3185	3185	25 indirectly, from factoring transactions or discounting
3186	3186	26 transactions; (3) royalty, patent, technical, and
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191
3192	3192	HB1573 - 88 - LRB104 06505 HLH 16541 b
3193	3193
3194	3194
3195	3195	HB1573- 89 -LRB104 06505 HLH 16541 b HB1573 - 89 - LRB104 06505 HLH 16541 b
3196	3196	HB1573 - 89 - LRB104 06505 HLH 16541 b
3197	3197	1 copyright fees; (4) licensing fees; and (5) other
3198	3198	2 similar expenses and costs. For purposes of this
3199	3199	3 subparagraph, "intangible property" includes patents,
3200	3200	4 patent applications, trade names, trademarks, service
3201	3201	5 marks, copyrights, mask works, trade secrets, and
3202	3202	6 similar types of intangible assets;
3203	3203	7 This paragraph shall not apply to the following:
3204	3204	8 (i) any item of intangible expenses or costs
3205	3205	9 paid, accrued, or incurred, directly or
3206	3206	10 indirectly, from a transaction with a person who
3207	3207	11 is subject in a foreign country or state, other
3208	3208	12 than a state which requires mandatory unitary
3209	3209	13 reporting, to a tax on or measured by net income
3210	3210	14 with respect to such item; or
3211	3211	15 (ii) any item of intangible expense or cost
3212	3212	16 paid, accrued, or incurred, directly or
3213	3213	17 indirectly, if the taxpayer can establish, based
3214	3214	18 on a preponderance of the evidence, both of the
3215	3215	19 following:
3216	3216	20 (a) the person during the same taxable
3217	3217	21 year paid, accrued, or incurred, the
3218	3218	22 intangible expense or cost to a person that is
3219	3219	23 not a related member, and
3220	3220	24 (b) the transaction giving rise to the
3221	3221	25 intangible expense or cost between the
3222	3222	26 taxpayer and the person did not have as a
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227
3228	3228	HB1573 - 89 - LRB104 06505 HLH 16541 b
3229	3229
3230	3230
3231	3231	HB1573- 90 -LRB104 06505 HLH 16541 b HB1573 - 90 - LRB104 06505 HLH 16541 b
3232	3232	HB1573 - 90 - LRB104 06505 HLH 16541 b
3233	3233	1 principal purpose the avoidance of Illinois
3234	3234	2 income tax, and is paid pursuant to a contract
3235	3235	3 or agreement that reflects arm's-length terms;
3236	3236	4 or
3237	3237	5 (iii) any item of intangible expense or cost
3238	3238	6 paid, accrued, or incurred, directly or
3239	3239	7 indirectly, from a transaction with a person if
3240	3240	8 the taxpayer establishes by clear and convincing
3241	3241	9 evidence, that the adjustments are unreasonable;
3242	3242	10 or if the taxpayer and the Director agree in
3243	3243	11 writing to the application or use of an
3244	3244	12 alternative method of apportionment under Section
3245	3245	13 304(f);
3246	3246	14 Nothing in this subsection shall preclude the
3247	3247	15 Director from making any other adjustment
3248	3248	16 otherwise allowed under Section 404 of this Act
3249	3249	17 for any tax year beginning after the effective
3250	3250	18 date of this amendment provided such adjustment is
3251	3251	19 made pursuant to regulation adopted by the
3252	3252	20 Department and such regulations provide methods
3253	3253	21 and standards by which the Department will utilize
3254	3254	22 its authority under Section 404 of this Act;
3255	3255	23 (D-9) For taxable years ending on or after
3256	3256	24 December 31, 2008, an amount equal to the amount of
3257	3257	25 insurance premium expenses and costs otherwise allowed
3258	3258	26 as a deduction in computing base income, and that were
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263
3264	3264	HB1573 - 90 - LRB104 06505 HLH 16541 b
3265	3265
3266	3266
3267	3267	HB1573- 91 -LRB104 06505 HLH 16541 b HB1573 - 91 - LRB104 06505 HLH 16541 b
3268	3268	HB1573 - 91 - LRB104 06505 HLH 16541 b
3269	3269	1 paid, accrued, or incurred, directly or indirectly, to
3270	3270	2 a person who would be a member of the same unitary
3271	3271	3 business group but for the fact that the person is
3272	3272	4 prohibited under Section 1501(a)(27) from being
3273	3273	5 included in the unitary business group because he or
3274	3274	6 she is ordinarily required to apportion business
3275	3275	7 income under different subsections of Section 304. The
3276	3276	8 addition modification required by this subparagraph
3277	3277	9 shall be reduced to the extent that dividends were
3278	3278	10 included in base income of the unitary group for the
3279	3279	11 same taxable year and received by the taxpayer or by a
3280	3280	12 member of the taxpayer's unitary business group
3281	3281	13 (including amounts included in gross income under
3282	3282	14 Sections 951 through 964 of the Internal Revenue Code
3283	3283	15 and amounts included in gross income under Section 78
3284	3284	16 of the Internal Revenue Code) with respect to the
3285	3285	17 stock of the same person to whom the premiums and costs
3286	3286	18 were directly or indirectly paid, incurred, or
3287	3287	19 accrued. The preceding sentence does not apply to the
3288	3288	20 extent that the same dividends caused a reduction to
3289	3289	21 the addition modification required under Section
3290	3290	22 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
3291	3291	23 (D-10) An amount equal to the credit allowable to
3292	3292	24 the taxpayer under Section 218(a) of this Act,
3293	3293	25 determined without regard to Section 218(c) of this
3294	3294	26 Act;
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299
3300	3300	HB1573 - 91 - LRB104 06505 HLH 16541 b
3301	3301
3302	3302
3303	3303	HB1573- 92 -LRB104 06505 HLH 16541 b HB1573 - 92 - LRB104 06505 HLH 16541 b
3304	3304	HB1573 - 92 - LRB104 06505 HLH 16541 b
3305	3305	1 (D-11) For taxable years ending on or after
3306	3306	2 December 31, 2017, an amount equal to the deduction
3307	3307	3 allowed under Section 199 of the Internal Revenue Code
3308	3308	4 for the taxable year;
3309	3309	5 (D-12) the amount that is claimed as a federal
3310	3310	6 deduction when computing the taxpayer's federal
3311	3311	7 taxable income for the taxable year and that is
3312	3312	8 attributable to an endowment gift for which the
3313	3313	9 taxpayer receives a credit under the Illinois Gives
3314	3314	10 Tax Credit Act;
3315	3315	11 and by deducting from the total so obtained the following
3316	3316	12 amounts:
3317	3317	13 (E) The valuation limitation amount;
3318	3318	14 (F) An amount equal to the amount of any tax
3319	3319	15 imposed by this Act which was refunded to the taxpayer
3320	3320	16 and included in such total for the taxable year;
3321	3321	17 (G) An amount equal to all amounts included in
3322	3322	18 taxable income as modified by subparagraphs (A), (B),
3323	3323	19 (C) and (D) which are exempt from taxation by this
3324	3324	20 State either by reason of its statutes or Constitution
3325	3325	21 or by reason of the Constitution, treaties or statutes
3326	3326	22 of the United States; provided that, in the case of any
3327	3327	23 statute of this State that exempts income derived from
3328	3328	24 bonds or other obligations from the tax imposed under
3329	3329	25 this Act, the amount exempted shall be the interest
3330	3330	26 net of bond premium amortization;
3331	3331
3332	3332
3333	3333
3334	3334
3335	3335
3336	3336	HB1573 - 92 - LRB104 06505 HLH 16541 b
3337	3337
3338	3338
3339	3339	HB1573- 93 -LRB104 06505 HLH 16541 b HB1573 - 93 - LRB104 06505 HLH 16541 b
3340	3340	HB1573 - 93 - LRB104 06505 HLH 16541 b
3341	3341	1 (H) Any income of the partnership which
3342	3342	2 constitutes personal service income as defined in
3343	3343	3 Section 1348(b)(1) of the Internal Revenue Code (as in
3344	3344	4 effect December 31, 1981) or a reasonable allowance
3345	3345	5 for compensation paid or accrued for services rendered
3346	3346	6 by partners to the partnership, whichever is greater;
3347	3347	7 this subparagraph (H) is exempt from the provisions of
3348	3348	8 Section 250;
3349	3349	9 (I) An amount equal to all amounts of income
3350	3350	10 distributable to an entity subject to the Personal
3351	3351	11 Property Tax Replacement Income Tax imposed by
3352	3352	12 subsections (c) and (d) of Section 201 of this Act
3353	3353	13 including amounts distributable to organizations
3354	3354	14 exempt from federal income tax by reason of Section
3355	3355	15 501(a) of the Internal Revenue Code; this subparagraph
3356	3356	16 (I) is exempt from the provisions of Section 250;
3357	3357	17 (J) With the exception of any amounts subtracted
3358	3358	18 under subparagraph (G), an amount equal to the sum of
3359	3359	19 all amounts disallowed as deductions by (i) Sections
3360	3360	20 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3361	3361	21 and all amounts of expenses allocable to interest and
3362	3362	22 disallowed as deductions by Section 265(a)(1) of the
3363	3363	23 Internal Revenue Code; and (ii) for taxable years
3364	3364	24 ending on or after August 13, 1999, Sections
3365	3365	25 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3366	3366	26 Internal Revenue Code, plus, (iii) for taxable years
3367	3367
3368	3368
3369	3369
3370	3370
3371	3371
3372	3372	HB1573 - 93 - LRB104 06505 HLH 16541 b
3373	3373
3374	3374
3375	3375	HB1573- 94 -LRB104 06505 HLH 16541 b HB1573 - 94 - LRB104 06505 HLH 16541 b
3376	3376	HB1573 - 94 - LRB104 06505 HLH 16541 b
3377	3377	1 ending on or after December 31, 2011, Section
3378	3378	2 45G(e)(3) of the Internal Revenue Code and, for
3379	3379	3 taxable years ending on or after December 31, 2008,
3380	3380	4 any amount included in gross income under Section 87
3381	3381	5 of the Internal Revenue Code; the provisions of this
3382	3382	6 subparagraph are exempt from the provisions of Section
3383	3383	7 250;
3384	3384	8 (K) An amount equal to those dividends included in
3385	3385	9 such total which were paid by a corporation which
3386	3386	10 conducts business operations in a River Edge
3387	3387	11 Redevelopment Zone or zones created under the River
3388	3388	12 Edge Redevelopment Zone Act and conducts substantially
3389	3389	13 all of its operations from a River Edge Redevelopment
3390	3390	14 Zone or zones. This subparagraph (K) is exempt from
3391	3391	15 the provisions of Section 250;
3392	3392	16 (L) An amount equal to any contribution made to a
3393	3393	17 job training project established pursuant to the Real
3394	3394	18 Property Tax Increment Allocation Redevelopment Act;
3395	3395	19 (M) An amount equal to those dividends included in
3396	3396	20 such total that were paid by a corporation that
3397	3397	21 conducts business operations in a federally designated
3398	3398	22 Foreign Trade Zone or Sub-Zone and that is designated
3399	3399	23 a High Impact Business located in Illinois; provided
3400	3400	24 that dividends eligible for the deduction provided in
3401	3401	25 subparagraph (K) of paragraph (2) of this subsection
3402	3402	26 shall not be eligible for the deduction provided under
3403	3403
3404	3404
3405	3405
3406	3406
3407	3407
3408	3408	HB1573 - 94 - LRB104 06505 HLH 16541 b
3409	3409
3410	3410
3411	3411	HB1573- 95 -LRB104 06505 HLH 16541 b HB1573 - 95 - LRB104 06505 HLH 16541 b
3412	3412	HB1573 - 95 - LRB104 06505 HLH 16541 b
3413	3413	1 this subparagraph (M);
3414	3414	2 (N) An amount equal to the amount of the deduction
3415	3415	3 used to compute the federal income tax credit for
3416	3416	4 restoration of substantial amounts held under claim of
3417	3417	5 right for the taxable year pursuant to Section 1341 of
3418	3418	6 the Internal Revenue Code;
3419	3419	7 (O) For taxable years 2001 and thereafter, for the
3420	3420	8 taxable year in which the bonus depreciation deduction
3421	3421	9 is taken on the taxpayer's federal income tax return
3422	3422	10 under subsection (k) of Section 168 of the Internal
3423	3423	11 Revenue Code and for each applicable taxable year
3424	3424	12 thereafter, an amount equal to "x", where:
3425	3425	13 (1) "y" equals the amount of the depreciation
3426	3426	14 deduction taken for the taxable year on the
3427	3427	15 taxpayer's federal income tax return on property
3428	3428	16 for which the bonus depreciation deduction was
3429	3429	17 taken in any year under subsection (k) of Section
3430	3430	18 168 of the Internal Revenue Code, but not
3431	3431	19 including the bonus depreciation deduction;
3432	3432	20 (2) for taxable years ending on or before
3433	3433	21 December 31, 2005, "x" equals "y" multiplied by 30
3434	3434	22 and then divided by 70 (or "y" multiplied by
3435	3435	23 0.429); and
3436	3436	24 (3) for taxable years ending after December
3437	3437	25 31, 2005:
3438	3438	26 (i) for property on which a bonus
3439	3439
3440	3440
3441	3441
3442	3442
3443	3443
3444	3444	HB1573 - 95 - LRB104 06505 HLH 16541 b
3445	3445
3446	3446
3447	3447	HB1573- 96 -LRB104 06505 HLH 16541 b HB1573 - 96 - LRB104 06505 HLH 16541 b
3448	3448	HB1573 - 96 - LRB104 06505 HLH 16541 b
3449	3449	1 depreciation deduction of 30% of the adjusted
3450	3450	2 basis was taken, "x" equals "y" multiplied by
3451	3451	3 30 and then divided by 70 (or "y" multiplied
3452	3452	4 by 0.429);
3453	3453	5 (ii) for property on which a bonus
3454	3454	6 depreciation deduction of 50% of the adjusted
3455	3455	7 basis was taken, "x" equals "y" multiplied by
3456	3456	8 1.0;
3457	3457	9 (iii) for property on which a bonus
3458	3458	10 depreciation deduction of 100% of the adjusted
3459	3459	11 basis was taken in a taxable year ending on or
3460	3460	12 after December 31, 2021, "x" equals the
3461	3461	13 depreciation deduction that would be allowed
3462	3462	14 on that property if the taxpayer had made the
3463	3463	15 election under Section 168(k)(7) of the
3464	3464	16 Internal Revenue Code to not claim bonus
3465	3465	17 depreciation on that property; and
3466	3466	18 (iv) for property on which a bonus
3467	3467	19 depreciation deduction of a percentage other
3468	3468	20 than 30%, 50% or 100% of the adjusted basis
3469	3469	21 was taken in a taxable year ending on or after
3470	3470	22 December 31, 2021, "x" equals "y" multiplied
3471	3471	23 by 100 times the percentage bonus depreciation
3472	3472	24 on the property (that is, 100(bonus%)) and
3473	3473	25 then divided by 100 times 1 minus the
3474	3474	26 percentage bonus depreciation on the property
3475	3475
3476	3476
3477	3477
3478	3478
3479	3479
3480	3480	HB1573 - 96 - LRB104 06505 HLH 16541 b
3481	3481
3482	3482
3483	3483	HB1573- 97 -LRB104 06505 HLH 16541 b HB1573 - 97 - LRB104 06505 HLH 16541 b
3484	3484	HB1573 - 97 - LRB104 06505 HLH 16541 b
3485	3485	1 (that is, 100(1-bonus%)).
3486	3486	2 The aggregate amount deducted under this
3487	3487	3 subparagraph in all taxable years for any one piece of
3488	3488	4 property may not exceed the amount of the bonus
3489	3489	5 depreciation deduction taken on that property on the
3490	3490	6 taxpayer's federal income tax return under subsection
3491	3491	7 (k) of Section 168 of the Internal Revenue Code. This
3492	3492	8 subparagraph (O) is exempt from the provisions of
3493	3493	9 Section 250;
3494	3494	10 (P) If the taxpayer sells, transfers, abandons, or
3495	3495	11 otherwise disposes of property for which the taxpayer
3496	3496	12 was required in any taxable year to make an addition
3497	3497	13 modification under subparagraph (D-5), then an amount
3498	3498	14 equal to that addition modification.
3499	3499	15 If the taxpayer continues to own property through
3500	3500	16 the last day of the last tax year for which a
3501	3501	17 subtraction is allowed with respect to that property
3502	3502	18 under subparagraph (O) and for which the taxpayer was
3503	3503	19 required in any taxable year to make an addition
3504	3504	20 modification under subparagraph (D-5), then an amount
3505	3505	21 equal to that addition modification.
3506	3506	22 The taxpayer is allowed to take the deduction
3507	3507	23 under this subparagraph only once with respect to any
3508	3508	24 one piece of property.
3509	3509	25 This subparagraph (P) is exempt from the
3510	3510	26 provisions of Section 250;
3511	3511
3512	3512
3513	3513
3514	3514
3515	3515
3516	3516	HB1573 - 97 - LRB104 06505 HLH 16541 b
3517	3517
3518	3518
3519	3519	HB1573- 98 -LRB104 06505 HLH 16541 b HB1573 - 98 - LRB104 06505 HLH 16541 b
3520	3520	HB1573 - 98 - LRB104 06505 HLH 16541 b
3521	3521	1 (Q) The amount of (i) any interest income (net of
3522	3522	2 the deductions allocable thereto) taken into account
3523	3523	3 for the taxable year with respect to a transaction
3524	3524	4 with a taxpayer that is required to make an addition
3525	3525	5 modification with respect to such transaction under
3526	3526	6 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3527	3527	7 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3528	3528	8 the amount of such addition modification and (ii) any
3529	3529	9 income from intangible property (net of the deductions
3530	3530	10 allocable thereto) taken into account for the taxable
3531	3531	11 year with respect to a transaction with a taxpayer
3532	3532	12 that is required to make an addition modification with
3533	3533	13 respect to such transaction under Section
3534	3534	14 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3535	3535	15 203(d)(2)(D-8), but not to exceed the amount of such
3536	3536	16 addition modification. This subparagraph (Q) is exempt
3537	3537	17 from Section 250;
3538	3538	18 (R) An amount equal to the interest income taken
3539	3539	19 into account for the taxable year (net of the
3540	3540	20 deductions allocable thereto) with respect to
3541	3541	21 transactions with (i) a foreign person who would be a
3542	3542	22 member of the taxpayer's unitary business group but
3543	3543	23 for the fact that the foreign person's business
3544	3544	24 activity outside the United States is 80% or more of
3545	3545	25 that person's total business activity and (ii) for
3546	3546	26 taxable years ending on or after December 31, 2008, to
3547	3547
3548	3548
3549	3549
3550	3550
3551	3551
3552	3552	HB1573 - 98 - LRB104 06505 HLH 16541 b
3553	3553
3554	3554
3555	3555	HB1573- 99 -LRB104 06505 HLH 16541 b HB1573 - 99 - LRB104 06505 HLH 16541 b
3556	3556	HB1573 - 99 - LRB104 06505 HLH 16541 b
3557	3557	1 a person who would be a member of the same unitary
3558	3558	2 business group but for the fact that the person is
3559	3559	3 prohibited under Section 1501(a)(27) from being
3560	3560	4 included in the unitary business group because he or
3561	3561	5 she is ordinarily required to apportion business
3562	3562	6 income under different subsections of Section 304, but
3563	3563	7 not to exceed the addition modification required to be
3564	3564	8 made for the same taxable year under Section
3565	3565	9 203(d)(2)(D-7) for interest paid, accrued, or
3566	3566	10 incurred, directly or indirectly, to the same person.
3567	3567	11 This subparagraph (R) is exempt from Section 250;
3568	3568	12 (S) An amount equal to the income from intangible
3569	3569	13 property taken into account for the taxable year (net
3570	3570	14 of the deductions allocable thereto) with respect to
3571	3571	15 transactions with (i) a foreign person who would be a
3572	3572	16 member of the taxpayer's unitary business group but
3573	3573	17 for the fact that the foreign person's business
3574	3574	18 activity outside the United States is 80% or more of
3575	3575	19 that person's total business activity and (ii) for
3576	3576	20 taxable years ending on or after December 31, 2008, to
3577	3577	21 a person who would be a member of the same unitary
3578	3578	22 business group but for the fact that the person is
3579	3579	23 prohibited under Section 1501(a)(27) from being
3580	3580	24 included in the unitary business group because he or
3581	3581	25 she is ordinarily required to apportion business
3582	3582	26 income under different subsections of Section 304, but
3583	3583
3584	3584
3585	3585
3586	3586
3587	3587
3588	3588	HB1573 - 99 - LRB104 06505 HLH 16541 b
3589	3589
3590	3590
3591	3591	HB1573- 100 -LRB104 06505 HLH 16541 b HB1573 - 100 - LRB104 06505 HLH 16541 b
3592	3592	HB1573 - 100 - LRB104 06505 HLH 16541 b
3593	3593	1 not to exceed the addition modification required to be
3594	3594	2 made for the same taxable year under Section
3595	3595	3 203(d)(2)(D-8) for intangible expenses and costs paid,
3596	3596	4 accrued, or incurred, directly or indirectly, to the
3597	3597	5 same person. This subparagraph (S) is exempt from
3598	3598	6 Section 250;
3599	3599	7 (T) For taxable years ending on or after December
3600	3600	8 31, 2011, in the case of a taxpayer who was required to
3601	3601	9 add back any insurance premiums under Section
3602	3602	10 203(d)(2)(D-9), such taxpayer may elect to subtract
3603	3603	11 that part of a reimbursement received from the
3604	3604	12 insurance company equal to the amount of the expense
3605	3605	13 or loss (including expenses incurred by the insurance
3606	3606	14 company) that would have been taken into account as a
3607	3607	15 deduction for federal income tax purposes if the
3608	3608	16 expense or loss had been uninsured. If a taxpayer
3609	3609	17 makes the election provided for by this subparagraph
3610	3610	18 (T), the insurer to which the premiums were paid must
3611	3611	19 add back to income the amount subtracted by the
3612	3612	20 taxpayer pursuant to this subparagraph (T). This
3613	3613	21 subparagraph (T) is exempt from the provisions of
3614	3614	22 Section 250; and
3615	3615	23 (U) For taxable years beginning on or after
3616	3616	24 January 1, 2023, for any cannabis establishment
3617	3617	25 operating in this State and licensed under the
3618	3618	26 Cannabis Regulation and Tax Act or any cannabis
3619	3619
3620	3620
3621	3621
3622	3622
3623	3623
3624	3624	HB1573 - 100 - LRB104 06505 HLH 16541 b
3625	3625
3626	3626
3627	3627	HB1573- 101 -LRB104 06505 HLH 16541 b HB1573 - 101 - LRB104 06505 HLH 16541 b
3628	3628	HB1573 - 101 - LRB104 06505 HLH 16541 b
3629	3629	1 cultivation center or medical cannabis dispensing
3630	3630	2 organization operating in this State and licensed
3631	3631	3 under the Compassionate Use of Medical Cannabis
3632	3632	4 Program Act, an amount equal to the deductions that
3633	3633	5 were disallowed under Section 280E of the Internal
3634	3634	6 Revenue Code for the taxable year and that would not be
3635	3635	7 added back under this subsection. The provisions of
3636	3636	8 this subparagraph (U) are exempt from the provisions
3637	3637	9 of Section 250; and .
3638	3638	10 (V) For taxable years beginning on or after
3639	3639	11 January 1, 2026, amounts paid by the taxpayer on
3640	3640	12 behalf of an employee of the taxpayer as part of an
3641	3641	13 educational assistance program, as defined in Section
3642	3642	14 127 of the Internal Revenue Code; the deduction under
3643	3643	15 this subparagraph shall apply only to the first $5,250
3644	3644	16 of such assistance so furnished to any particular
3645	3645	17 individual; this subparagraph is exempt from the
3646	3646	18 provisions of Section 250.
3647	3647	19 (e) Gross income; adjusted gross income; taxable income.
3648	3648	20 (1) In general. Subject to the provisions of paragraph
3649	3649	21 (2) and subsection (b)(3), for purposes of this Section
3650	3650	22 and Section 803(e), a taxpayer's gross income, adjusted
3651	3651	23 gross income, or taxable income for the taxable year shall
3652	3652	24 mean the amount of gross income, adjusted gross income or
3653	3653	25 taxable income properly reportable for federal income tax
3654	3654
3655	3655
3656	3656
3657	3657
3658	3658
3659	3659	HB1573 - 101 - LRB104 06505 HLH 16541 b
3660	3660
3661	3661
3662	3662	HB1573- 102 -LRB104 06505 HLH 16541 b HB1573 - 102 - LRB104 06505 HLH 16541 b
3663	3663	HB1573 - 102 - LRB104 06505 HLH 16541 b
3664	3664	1 purposes for the taxable year under the provisions of the
3665	3665	2 Internal Revenue Code. Taxable income may be less than
3666	3666	3 zero. However, for taxable years ending on or after
3667	3667	4 December 31, 1986, net operating loss carryforwards from
3668	3668	5 taxable years ending prior to December 31, 1986, may not
3669	3669	6 exceed the sum of federal taxable income for the taxable
3670	3670	7 year before net operating loss deduction, plus the excess
3671	3671	8 of addition modifications over subtraction modifications
3672	3672	9 for the taxable year. For taxable years ending prior to
3673	3673	10 December 31, 1986, taxable income may never be an amount
3674	3674	11 in excess of the net operating loss for the taxable year as
3675	3675	12 defined in subsections (c) and (d) of Section 172 of the
3676	3676	13 Internal Revenue Code, provided that when taxable income
3677	3677	14 of a corporation (other than a Subchapter S corporation),
3678	3678	15 trust, or estate is less than zero and addition
3679	3679	16 modifications, other than those provided by subparagraph
3680	3680	17 (E) of paragraph (2) of subsection (b) for corporations or
3681	3681	18 subparagraph (E) of paragraph (2) of subsection (c) for
3682	3682	19 trusts and estates, exceed subtraction modifications, an
3683	3683	20 addition modification must be made under those
3684	3684	21 subparagraphs for any other taxable year to which the
3685	3685	22 taxable income less than zero (net operating loss) is
3686	3686	23 applied under Section 172 of the Internal Revenue Code or
3687	3687	24 under subparagraph (E) of paragraph (2) of this subsection
3688	3688	25 (e) applied in conjunction with Section 172 of the
3689	3689	26 Internal Revenue Code.
3690	3690
3691	3691
3692	3692
3693	3693
3694	3694
3695	3695	HB1573 - 102 - LRB104 06505 HLH 16541 b
3696	3696
3697	3697
3698	3698	HB1573- 103 -LRB104 06505 HLH 16541 b HB1573 - 103 - LRB104 06505 HLH 16541 b
3699	3699	HB1573 - 103 - LRB104 06505 HLH 16541 b
3700	3700	1 (2) Special rule. For purposes of paragraph (1) of
3701	3701	2 this subsection, the taxable income properly reportable
3702	3702	3 for federal income tax purposes shall mean:
3703	3703	4 (A) Certain life insurance companies. In the case
3704	3704	5 of a life insurance company subject to the tax imposed
3705	3705	6 by Section 801 of the Internal Revenue Code, life
3706	3706	7 insurance company taxable income, plus the amount of
3707	3707	8 distribution from pre-1984 policyholder surplus
3708	3708	9 accounts as calculated under Section 815a of the
3709	3709	10 Internal Revenue Code;
3710	3710	11 (B) Certain other insurance companies. In the case
3711	3711	12 of mutual insurance companies subject to the tax
3712	3712	13 imposed by Section 831 of the Internal Revenue Code,
3713	3713	14 insurance company taxable income;
3714	3714	15 (C) Regulated investment companies. In the case of
3715	3715	16 a regulated investment company subject to the tax
3716	3716	17 imposed by Section 852 of the Internal Revenue Code,
3717	3717	18 investment company taxable income;
3718	3718	19 (D) Real estate investment trusts. In the case of
3719	3719	20 a real estate investment trust subject to the tax
3720	3720	21 imposed by Section 857 of the Internal Revenue Code,
3721	3721	22 real estate investment trust taxable income;
3722	3722	23 (E) Consolidated corporations. In the case of a
3723	3723	24 corporation which is a member of an affiliated group
3724	3724	25 of corporations filing a consolidated income tax
3725	3725	26 return for the taxable year for federal income tax
3726	3726
3727	3727
3728	3728
3729	3729
3730	3730
3731	3731	HB1573 - 103 - LRB104 06505 HLH 16541 b
3732	3732
3733	3733
3734	3734	HB1573- 104 -LRB104 06505 HLH 16541 b HB1573 - 104 - LRB104 06505 HLH 16541 b
3735	3735	HB1573 - 104 - LRB104 06505 HLH 16541 b
3736	3736	1 purposes, taxable income determined as if such
3737	3737	2 corporation had filed a separate return for federal
3738	3738	3 income tax purposes for the taxable year and each
3739	3739	4 preceding taxable year for which it was a member of an
3740	3740	5 affiliated group. For purposes of this subparagraph,
3741	3741	6 the taxpayer's separate taxable income shall be
3742	3742	7 determined as if the election provided by Section
3743	3743	8 243(b)(2) of the Internal Revenue Code had been in
3744	3744	9 effect for all such years;
3745	3745	10 (F) Cooperatives. In the case of a cooperative
3746	3746	11 corporation or association, the taxable income of such
3747	3747	12 organization determined in accordance with the
3748	3748	13 provisions of Section 1381 through 1388 of the
3749	3749	14 Internal Revenue Code, but without regard to the
3750	3750	15 prohibition against offsetting losses from patronage
3751	3751	16 activities against income from nonpatronage
3752	3752	17 activities; except that a cooperative corporation or
3753	3753	18 association may make an election to follow its federal
3754	3754	19 income tax treatment of patronage losses and
3755	3755	20 nonpatronage losses. In the event such election is
3756	3756	21 made, such losses shall be computed and carried over
3757	3757	22 in a manner consistent with subsection (a) of Section
3758	3758	23 207 of this Act and apportioned by the apportionment
3759	3759	24 factor reported by the cooperative on its Illinois
3760	3760	25 income tax return filed for the taxable year in which
3761	3761	26 the losses are incurred. The election shall be
3762	3762
3763	3763
3764	3764
3765	3765
3766	3766
3767	3767	HB1573 - 104 - LRB104 06505 HLH 16541 b
3768	3768
3769	3769
3770	3770	HB1573- 105 -LRB104 06505 HLH 16541 b HB1573 - 105 - LRB104 06505 HLH 16541 b
3771	3771	HB1573 - 105 - LRB104 06505 HLH 16541 b
3772	3772	1 effective for all taxable years with original returns
3773	3773	2 due on or after the date of the election. In addition,
3774	3774	3 the cooperative may file an amended return or returns,
3775	3775	4 as allowed under this Act, to provide that the
3776	3776	5 election shall be effective for losses incurred or
3777	3777	6 carried forward for taxable years occurring prior to
3778	3778	7 the date of the election. Once made, the election may
3779	3779	8 only be revoked upon approval of the Director. The
3780	3780	9 Department shall adopt rules setting forth
3781	3781	10 requirements for documenting the elections and any
3782	3782	11 resulting Illinois net loss and the standards to be
3783	3783	12 used by the Director in evaluating requests to revoke
3784	3784	13 elections. Public Act 96-932 is declaratory of
3785	3785	14 existing law;
3786	3786	15 (G) Subchapter S corporations. In the case of: (i)
3787	3787	16 a Subchapter S corporation for which there is in
3788	3788	17 effect an election for the taxable year under Section
3789	3789	18 1362 of the Internal Revenue Code, the taxable income
3790	3790	19 of such corporation determined in accordance with
3791	3791	20 Section 1363(b) of the Internal Revenue Code, except
3792	3792	21 that taxable income shall take into account those
3793	3793	22 items which are required by Section 1363(b)(1) of the
3794	3794	23 Internal Revenue Code to be separately stated; and
3795	3795	24 (ii) a Subchapter S corporation for which there is in
3796	3796	25 effect a federal election to opt out of the provisions
3797	3797	26 of the Subchapter S Revision Act of 1982 and have
3798	3798
3799	3799
3800	3800
3801	3801
3802	3802
3803	3803	HB1573 - 105 - LRB104 06505 HLH 16541 b
3804	3804
3805	3805
3806	3806	HB1573- 106 -LRB104 06505 HLH 16541 b HB1573 - 106 - LRB104 06505 HLH 16541 b
3807	3807	HB1573 - 106 - LRB104 06505 HLH 16541 b
3808	3808	1 applied instead the prior federal Subchapter S rules
3809	3809	2 as in effect on July 1, 1982, the taxable income of
3810	3810	3 such corporation determined in accordance with the
3811	3811	4 federal Subchapter S rules as in effect on July 1,
3812	3812	5 1982; and
3813	3813	6 (H) Partnerships. In the case of a partnership,
3814	3814	7 taxable income determined in accordance with Section
3815	3815	8 703 of the Internal Revenue Code, except that taxable
3816	3816	9 income shall take into account those items which are
3817	3817	10 required by Section 703(a)(1) to be separately stated
3818	3818	11 but which would be taken into account by an individual
3819	3819	12 in calculating his taxable income.
3820	3820	13 (3) Recapture of business expenses on disposition of
3821	3821	14 asset or business. Notwithstanding any other law to the
3822	3822	15 contrary, if in prior years income from an asset or
3823	3823	16 business has been classified as business income and in a
3824	3824	17 later year is demonstrated to be non-business income, then
3825	3825	18 all expenses, without limitation, deducted in such later
3826	3826	19 year and in the 2 immediately preceding taxable years
3827	3827	20 related to that asset or business that generated the
3828	3828	21 non-business income shall be added back and recaptured as
3829	3829	22 business income in the year of the disposition of the
3830	3830	23 asset or business. Such amount shall be apportioned to
3831	3831	24 Illinois using the greater of the apportionment fraction
3832	3832	25 computed for the business under Section 304 of this Act
3833	3833	26 for the taxable year or the average of the apportionment
3834	3834
3835	3835
3836	3836
3837	3837
3838	3838
3839	3839	HB1573 - 106 - LRB104 06505 HLH 16541 b
3840	3840
3841	3841
3842	3842	HB1573- 107 -LRB104 06505 HLH 16541 b HB1573 - 107 - LRB104 06505 HLH 16541 b
3843	3843	HB1573 - 107 - LRB104 06505 HLH 16541 b
3844	3844	1 fractions computed for the business under Section 304 of
3845	3845	2 this Act for the taxable year and for the 2 immediately
3846	3846	3 preceding taxable years.
3847	3847	4 (f) Valuation limitation amount.
3848	3848	5 (1) In general. The valuation limitation amount
3849	3849	6 referred to in subsections (a)(2)(G), (c)(2)(I) and
3850	3850	7 (d)(2)(E) is an amount equal to:
3851	3851	8 (A) The sum of the pre-August 1, 1969 appreciation
3852	3852	9 amounts (to the extent consisting of gain reportable
3853	3853	10 under the provisions of Section 1245 or 1250 of the
3854	3854	11 Internal Revenue Code) for all property in respect of
3855	3855	12 which such gain was reported for the taxable year;
3856	3856	13 plus
3857	3857	14 (B) The lesser of (i) the sum of the pre-August 1,
3858	3858	15 1969 appreciation amounts (to the extent consisting of
3859	3859	16 capital gain) for all property in respect of which
3860	3860	17 such gain was reported for federal income tax purposes
3861	3861	18 for the taxable year, or (ii) the net capital gain for
3862	3862	19 the taxable year, reduced in either case by any amount
3863	3863	20 of such gain included in the amount determined under
3864	3864	21 subsection (a)(2)(F) or (c)(2)(H).
3865	3865	22 (2) Pre-August 1, 1969 appreciation amount.
3866	3866	23 (A) If the fair market value of property referred
3867	3867	24 to in paragraph (1) was readily ascertainable on
3868	3868	25 August 1, 1969, the pre-August 1, 1969 appreciation
3869	3869
3870	3870
3871	3871
3872	3872
3873	3873
3874	3874	HB1573 - 107 - LRB104 06505 HLH 16541 b
3875	3875
3876	3876
3877	3877	HB1573- 108 -LRB104 06505 HLH 16541 b HB1573 - 108 - LRB104 06505 HLH 16541 b
3878	3878	HB1573 - 108 - LRB104 06505 HLH 16541 b
3879	3879	1 amount for such property is the lesser of (i) the
3880	3880	2 excess of such fair market value over the taxpayer's
3881	3881	3 basis (for determining gain) for such property on that
3882	3882	4 date (determined under the Internal Revenue Code as in
3883	3883	5 effect on that date), or (ii) the total gain realized
3884	3884	6 and reportable for federal income tax purposes in
3885	3885	7 respect of the sale, exchange or other disposition of
3886	3886	8 such property.
3887	3887	9 (B) If the fair market value of property referred
3888	3888	10 to in paragraph (1) was not readily ascertainable on
3889	3889	11 August 1, 1969, the pre-August 1, 1969 appreciation
3890	3890	12 amount for such property is that amount which bears
3891	3891	13 the same ratio to the total gain reported in respect of
3892	3892	14 the property for federal income tax purposes for the
3893	3893	15 taxable year, as the number of full calendar months in
3894	3894	16 that part of the taxpayer's holding period for the
3895	3895	17 property ending July 31, 1969 bears to the number of
3896	3896	18 full calendar months in the taxpayer's entire holding
3897	3897	19 period for the property.
3898	3898	20 (C) The Department shall prescribe such
3899	3899	21 regulations as may be necessary to carry out the
3900	3900	22 purposes of this paragraph.
3901	3901	23 (g) Double deductions. Unless specifically provided
3902	3902	24 otherwise, nothing in this Section shall permit the same item
3903	3903	25 to be deducted more than once.
3904	3904
3905	3905
3906	3906
3907	3907
3908	3908
3909	3909	HB1573 - 108 - LRB104 06505 HLH 16541 b
3910	3910
3911	3911
3912	3912	HB1573- 109 -LRB104 06505 HLH 16541 b HB1573 - 109 - LRB104 06505 HLH 16541 b
3913	3913	HB1573 - 109 - LRB104 06505 HLH 16541 b
3914	3914	1 (h) Legislative intention. Except as expressly provided by
3915	3915	2 this Section there shall be no modifications or limitations on
3916	3916	3 the amounts of income, gain, loss or deduction taken into
3917	3917	4 account in determining gross income, adjusted gross income or
3918	3918	5 taxable income for federal income tax purposes for the taxable
3919	3919	6 year, or in the amount of such items entering into the
3920	3920	7 computation of base income and net income under this Act for
3921	3921	8 such taxable year, whether in respect of property values as of
3922	3922	9 August 1, 1969 or otherwise.
3923	3923	10 (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
3924	3924	11 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
3925	3925	12 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; 103-592,
3926	3926	13 Article 10, Section 10-900, eff. 6-7-24; 103-592, Article 170,
3927	3927	14 Section 170-90, eff. 6-7-24; 103-605, eff. 7-1-24; 103-647,
3928	3928	15 eff. 7-1-24; revised 8-20-24.)
3929	3929
3930	3930
3931	3931
3932	3932
3933	3933
3934	3934	HB1573 - 109 - LRB104 06505 HLH 16541 b