Illinois 2025-2026 Regular Session

Illinois House Bill HB1824 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1824 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/203 from Ch. 120, par. 2-203 Creates the Master Development Plan Recognition Act. Provides that certain contributions made by the State or units of local government are considered made pursuant to a master development plan within the meaning of Section 118 of the Internal Revenue Code of 1986. Amends the Illinois Income Tax Act. Creates a deduction for capital contributions that are made pursuant to a master development plan and that are included in the taxpayer's federal taxable income for the taxable year under Section 118 of the Internal Revenue Code. Effective immediately. LRB104 09229 HLH 19286 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1824 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: New Act35 ILCS 5/203 from Ch. 120, par. 2-203 New Act 35 ILCS 5/203 from Ch. 120, par. 2-203 Creates the Master Development Plan Recognition Act. Provides that certain contributions made by the State or units of local government are considered made pursuant to a master development plan within the meaning of Section 118 of the Internal Revenue Code of 1986. Amends the Illinois Income Tax Act. Creates a deduction for capital contributions that are made pursuant to a master development plan and that are included in the taxpayer's federal taxable income for the taxable year under Section 118 of the Internal Revenue Code. Effective immediately. LRB104 09229 HLH 19286 b LRB104 09229 HLH 19286 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1824 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
3	3	New Act35 ILCS 5/203 from Ch. 120, par. 2-203 New Act 35 ILCS 5/203 from Ch. 120, par. 2-203
4	4	New Act
5	5	35 ILCS 5/203 from Ch. 120, par. 2-203
6	6	Creates the Master Development Plan Recognition Act. Provides that certain contributions made by the State or units of local government are considered made pursuant to a master development plan within the meaning of Section 118 of the Internal Revenue Code of 1986. Amends the Illinois Income Tax Act. Creates a deduction for capital contributions that are made pursuant to a master development plan and that are included in the taxpayer's federal taxable income for the taxable year under Section 118 of the Internal Revenue Code. Effective immediately.
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8	8	LRB104 09229 HLH 19286 b
9	9	A BILL FOR
10	10	HB1824LRB104 09229 HLH 19286 b HB1824 LRB104 09229 HLH 19286 b
11	11	HB1824 LRB104 09229 HLH 19286 b
12	12	1 AN ACT concerning State government.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 1. Short title. This Act may be cited as the Master
16	16	5 Development Plan Recognition Act.
17	17	6 Section 5. Legislative purpose. In 1979, the General
18	18	7 Assembly passed legislation creating the Department of
19	19	8 Commerce and Community Affairs as the primary State agency
20	20	9 responsible for the State's economic competitiveness. In 2003,
21	21	10 the Department of Commerce and Community Affairs was renamed
22	22	11 the Department of Commerce and Economic Opportunity. To date,
23	23	12 the Department of Commerce and Economic Opportunity has
24	24	13 continued the Department of Commerce and Community Affairs'
25	25	14 mission of economic growth. To that end, the Department of
26	26	15 Commerce and Economic Opportunity administers many programs
27	27	16 that, as a whole, comprise a master development plan designed
28	28	17 to facilitate economic and community revitalization throughout
29	29	18 the State. In addition, the State has established and
30	30	19 supported other financial assistance programs that promote
31	31	20 economic growth consistent with a master development plan. The
32	32	21 purpose of this Act is to define those actions taken by the
33	33	22 State or its political subdivisions that constitute
34	34	23 contributions made by a governmental entity pursuant to a
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38	38	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1824 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED:
39	39	New Act35 ILCS 5/203 from Ch. 120, par. 2-203 New Act 35 ILCS 5/203 from Ch. 120, par. 2-203
40	40	New Act
41	41	35 ILCS 5/203 from Ch. 120, par. 2-203
42	42	Creates the Master Development Plan Recognition Act. Provides that certain contributions made by the State or units of local government are considered made pursuant to a master development plan within the meaning of Section 118 of the Internal Revenue Code of 1986. Amends the Illinois Income Tax Act. Creates a deduction for capital contributions that are made pursuant to a master development plan and that are included in the taxpayer's federal taxable income for the taxable year under Section 118 of the Internal Revenue Code. Effective immediately.
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44	44	LRB104 09229 HLH 19286 b
45	45	A BILL FOR
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51	51	New Act
52	52	35 ILCS 5/203 from Ch. 120, par. 2-203
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71	71	1 master development plan approved by the governmental entity
72	72	2 for purposes of Section 118 of the Internal Revenue Code of
73	73	3 1986.
74	74	4 Section 10. Eligible contributions. Contributions made by
75	75	5 a governmental entity pursuant to a master development plan
76	76	6 approved by the governmental entity within the meaning of
77	77	7 Section 118 of the Internal Revenue Code of 1986 include, but
78	78	8 are not limited to, the following:
79	79	9 (1) grants approved by the Department of Commerce and
80	80	10 Economic Opportunity, or by any other agency of, or entity
81	81	11 created by, the State of Illinois, regardless of whether
82	82	12 the grants are also approved by any other agency, board,
83	83	13 or other office of State government, and regardless of
84	84	14 when the funding in connection with the grant is
85	85	15 authorized or paid;
86	86	16 (2) grants approved by an authorized representative of
87	87	17 any county or municipality within the State, or any agency
88	88	18 of, or entity created by, the county or municipality,
89	89	19 whether the funding for the grants originates in whole or
90	90	20 in part with the State or with the county or municipality,
91	91	21 and regardless of when the funding in connection with the
92	92	22 grant is authorized or paid;
93	93	23 (3) tax increment financing applications for which a
94	94	24 letter, or final, preliminary, or conditional approval,
95	95	25 has been issued by an appropriate representative of State,
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106	106	1 county, or municipal government, and regardless of when
107	107	2 the funding in connection with the tax increment financing
108	108	3 application is authorized or paid; and
109	109	4 (4) any other financing provided pursuant to a
110	110	5 development plan, redevelopment plan, revitalization plan,
111	111	6 or similar plan approved by an appropriate representative
112	112	7 of State, county, or municipal government, and regardless
113	113	8 of when the funding in connection with the plan is
114	114	9 authorized or paid.
115	115	10 Section 900. The Illinois Income Tax Act is amended by
116	116	11 changing Section 203 as follows:
117	117	12 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
118	118	13 Sec. 203. Base income defined.
119	119	14 (a) Individuals.
120	120	15 (1) In general. In the case of an individual, base
121	121	16 income means an amount equal to the taxpayer's adjusted
122	122	17 gross income for the taxable year as modified by paragraph
123	123	18 (2).
124	124	19 (2) Modifications. The adjusted gross income referred
125	125	20 to in paragraph (1) shall be modified by adding thereto
126	126	21 the sum of the following amounts:
127	127	22 (A) An amount equal to all amounts paid or accrued
128	128	23 to the taxpayer as interest or dividends during the
129	129	24 taxable year to the extent excluded from gross income
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140	140	1 in the computation of adjusted gross income, except
141	141	2 stock dividends of qualified public utilities
142	142	3 described in Section 305(e) of the Internal Revenue
143	143	4 Code;
144	144	5 (B) An amount equal to the amount of tax imposed by
145	145	6 this Act to the extent deducted from gross income in
146	146	7 the computation of adjusted gross income for the
147	147	8 taxable year;
148	148	9 (C) An amount equal to the amount received during
149	149	10 the taxable year as a recovery or refund of real
150	150	11 property taxes paid with respect to the taxpayer's
151	151	12 principal residence under the Revenue Act of 1939 and
152	152	13 for which a deduction was previously taken under
153	153	14 subparagraph (L) of this paragraph (2) prior to July
154	154	15 1, 1991, the retrospective application date of Article
155	155	16 4 of Public Act 87-17. In the case of multi-unit or
156	156	17 multi-use structures and farm dwellings, the taxes on
157	157	18 the taxpayer's principal residence shall be that
158	158	19 portion of the total taxes for the entire property
159	159	20 which is attributable to such principal residence;
160	160	21 (D) An amount equal to the amount of the capital
161	161	22 gain deduction allowable under the Internal Revenue
162	162	23 Code, to the extent deducted from gross income in the
163	163	24 computation of adjusted gross income;
164	164	25 (D-5) An amount, to the extent not included in
165	165	26 adjusted gross income, equal to the amount of money
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176	176	1 withdrawn by the taxpayer in the taxable year from a
177	177	2 medical care savings account and the interest earned
178	178	3 on the account in the taxable year of a withdrawal
179	179	4 pursuant to subsection (b) of Section 20 of the
180	180	5 Medical Care Savings Account Act or subsection (b) of
181	181	6 Section 20 of the Medical Care Savings Account Act of
182	182	7 2000;
183	183	8 (D-10) For taxable years ending after December 31,
184	184	9 1997, an amount equal to any eligible remediation
185	185	10 costs that the individual deducted in computing
186	186	11 adjusted gross income and for which the individual
187	187	12 claims a credit under subsection (l) of Section 201;
188	188	13 (D-15) For taxable years 2001 and thereafter, an
189	189	14 amount equal to the bonus depreciation deduction taken
190	190	15 on the taxpayer's federal income tax return for the
191	191	16 taxable year under subsection (k) of Section 168 of
192	192	17 the Internal Revenue Code;
193	193	18 (D-16) If the taxpayer sells, transfers, abandons,
194	194	19 or otherwise disposes of property for which the
195	195	20 taxpayer was required in any taxable year to make an
196	196	21 addition modification under subparagraph (D-15), then
197	197	22 an amount equal to the aggregate amount of the
198	198	23 deductions taken in all taxable years under
199	199	24 subparagraph (Z) with respect to that property.
200	200	25 If the taxpayer continues to own property through
201	201	26 the last day of the last tax year for which a
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212	212	1 subtraction is allowed with respect to that property
213	213	2 under subparagraph (Z) and for which the taxpayer was
214	214	3 allowed in any taxable year to make a subtraction
215	215	4 modification under subparagraph (Z), then an amount
216	216	5 equal to that subtraction modification.
217	217	6 The taxpayer is required to make the addition
218	218	7 modification under this subparagraph only once with
219	219	8 respect to any one piece of property;
220	220	9 (D-17) An amount equal to the amount otherwise
221	221	10 allowed as a deduction in computing base income for
222	222	11 interest paid, accrued, or incurred, directly or
223	223	12 indirectly, (i) for taxable years ending on or after
224	224	13 December 31, 2004, to a foreign person who would be a
225	225	14 member of the same unitary business group but for the
226	226	15 fact that foreign person's business activity outside
227	227	16 the United States is 80% or more of the foreign
228	228	17 person's total business activity and (ii) for taxable
229	229	18 years ending on or after December 31, 2008, to a person
230	230	19 who would be a member of the same unitary business
231	231	20 group but for the fact that the person is prohibited
232	232	21 under Section 1501(a)(27) from being included in the
233	233	22 unitary business group because he or she is ordinarily
234	234	23 required to apportion business income under different
235	235	24 subsections of Section 304. The addition modification
236	236	25 required by this subparagraph shall be reduced to the
237	237	26 extent that dividends were included in base income of
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248	248	1 the unitary group for the same taxable year and
249	249	2 received by the taxpayer or by a member of the
250	250	3 taxpayer's unitary business group (including amounts
251	251	4 included in gross income under Sections 951 through
252	252	5 964 of the Internal Revenue Code and amounts included
253	253	6 in gross income under Section 78 of the Internal
254	254	7 Revenue Code) with respect to the stock of the same
255	255	8 person to whom the interest was paid, accrued, or
256	256	9 incurred.
257	257	10 This paragraph shall not apply to the following:
258	258	11 (i) an item of interest paid, accrued, or
259	259	12 incurred, directly or indirectly, to a person who
260	260	13 is subject in a foreign country or state, other
261	261	14 than a state which requires mandatory unitary
262	262	15 reporting, to a tax on or measured by net income
263	263	16 with respect to such interest; or
264	264	17 (ii) an item of interest paid, accrued, or
265	265	18 incurred, directly or indirectly, to a person if
266	266	19 the taxpayer can establish, based on a
267	267	20 preponderance of the evidence, both of the
268	268	21 following:
269	269	22 (a) the person, during the same taxable
270	270	23 year, paid, accrued, or incurred, the interest
271	271	24 to a person that is not a related member, and
272	272	25 (b) the transaction giving rise to the
273	273	26 interest expense between the taxpayer and the
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284	284	1 person did not have as a principal purpose the
285	285	2 avoidance of Illinois income tax, and is paid
286	286	3 pursuant to a contract or agreement that
287	287	4 reflects an arm's-length interest rate and
288	288	5 terms; or
289	289	6 (iii) the taxpayer can establish, based on
290	290	7 clear and convincing evidence, that the interest
291	291	8 paid, accrued, or incurred relates to a contract
292	292	9 or agreement entered into at arm's-length rates
293	293	10 and terms and the principal purpose for the
294	294	11 payment is not federal or Illinois tax avoidance;
295	295	12 or
296	296	13 (iv) an item of interest paid, accrued, or
297	297	14 incurred, directly or indirectly, to a person if
298	298	15 the taxpayer establishes by clear and convincing
299	299	16 evidence that the adjustments are unreasonable; or
300	300	17 if the taxpayer and the Director agree in writing
301	301	18 to the application or use of an alternative method
302	302	19 of apportionment under Section 304(f).
303	303	20 Nothing in this subsection shall preclude the
304	304	21 Director from making any other adjustment
305	305	22 otherwise allowed under Section 404 of this Act
306	306	23 for any tax year beginning after the effective
307	307	24 date of this amendment provided such adjustment is
308	308	25 made pursuant to regulation adopted by the
309	309	26 Department and such regulations provide methods
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320	320	1 and standards by which the Department will utilize
321	321	2 its authority under Section 404 of this Act;
322	322	3 (D-18) An amount equal to the amount of intangible
323	323	4 expenses and costs otherwise allowed as a deduction in
324	324	5 computing base income, and that were paid, accrued, or
325	325	6 incurred, directly or indirectly, (i) for taxable
326	326	7 years ending on or after December 31, 2004, to a
327	327	8 foreign person who would be a member of the same
328	328	9 unitary business group but for the fact that the
329	329	10 foreign person's business activity outside the United
330	330	11 States is 80% or more of that person's total business
331	331	12 activity and (ii) for taxable years ending on or after
332	332	13 December 31, 2008, to a person who would be a member of
333	333	14 the same unitary business group but for the fact that
334	334	15 the person is prohibited under Section 1501(a)(27)
335	335	16 from being included in the unitary business group
336	336	17 because he or she is ordinarily required to apportion
337	337	18 business income under different subsections of Section
338	338	19 304. The addition modification required by this
339	339	20 subparagraph shall be reduced to the extent that
340	340	21 dividends were included in base income of the unitary
341	341	22 group for the same taxable year and received by the
342	342	23 taxpayer or by a member of the taxpayer's unitary
343	343	24 business group (including amounts included in gross
344	344	25 income under Sections 951 through 964 of the Internal
345	345	26 Revenue Code and amounts included in gross income
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356	356	1 under Section 78 of the Internal Revenue Code) with
357	357	2 respect to the stock of the same person to whom the
358	358	3 intangible expenses and costs were directly or
359	359	4 indirectly paid, incurred, or accrued. The preceding
360	360	5 sentence does not apply to the extent that the same
361	361	6 dividends caused a reduction to the addition
362	362	7 modification required under Section 203(a)(2)(D-17) of
363	363	8 this Act. As used in this subparagraph, the term
364	364	9 "intangible expenses and costs" includes (1) expenses,
365	365	10 losses, and costs for, or related to, the direct or
366	366	11 indirect acquisition, use, maintenance or management,
367	367	12 ownership, sale, exchange, or any other disposition of
368	368	13 intangible property; (2) losses incurred, directly or
369	369	14 indirectly, from factoring transactions or discounting
370	370	15 transactions; (3) royalty, patent, technical, and
371	371	16 copyright fees; (4) licensing fees; and (5) other
372	372	17 similar expenses and costs. For purposes of this
373	373	18 subparagraph, "intangible property" includes patents,
374	374	19 patent applications, trade names, trademarks, service
375	375	20 marks, copyrights, mask works, trade secrets, and
376	376	21 similar types of intangible assets.
377	377	22 This paragraph shall not apply to the following:
378	378	23 (i) any item of intangible expenses or costs
379	379	24 paid, accrued, or incurred, directly or
380	380	25 indirectly, from a transaction with a person who
381	381	26 is subject in a foreign country or state, other
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392	392	1 than a state which requires mandatory unitary
393	393	2 reporting, to a tax on or measured by net income
394	394	3 with respect to such item; or
395	395	4 (ii) any item of intangible expense or cost
396	396	5 paid, accrued, or incurred, directly or
397	397	6 indirectly, if the taxpayer can establish, based
398	398	7 on a preponderance of the evidence, both of the
399	399	8 following:
400	400	9 (a) the person during the same taxable
401	401	10 year paid, accrued, or incurred, the
402	402	11 intangible expense or cost to a person that is
403	403	12 not a related member, and
404	404	13 (b) the transaction giving rise to the
405	405	14 intangible expense or cost between the
406	406	15 taxpayer and the person did not have as a
407	407	16 principal purpose the avoidance of Illinois
408	408	17 income tax, and is paid pursuant to a contract
409	409	18 or agreement that reflects arm's-length terms;
410	410	19 or
411	411	20 (iii) any item of intangible expense or cost
412	412	21 paid, accrued, or incurred, directly or
413	413	22 indirectly, from a transaction with a person if
414	414	23 the taxpayer establishes by clear and convincing
415	415	24 evidence, that the adjustments are unreasonable;
416	416	25 or if the taxpayer and the Director agree in
417	417	26 writing to the application or use of an
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428	428	1 alternative method of apportionment under Section
429	429	2 304(f);
430	430	3 Nothing in this subsection shall preclude the
431	431	4 Director from making any other adjustment
432	432	5 otherwise allowed under Section 404 of this Act
433	433	6 for any tax year beginning after the effective
434	434	7 date of this amendment provided such adjustment is
435	435	8 made pursuant to regulation adopted by the
436	436	9 Department and such regulations provide methods
437	437	10 and standards by which the Department will utilize
438	438	11 its authority under Section 404 of this Act;
439	439	12 (D-19) For taxable years ending on or after
440	440	13 December 31, 2008, an amount equal to the amount of
441	441	14 insurance premium expenses and costs otherwise allowed
442	442	15 as a deduction in computing base income, and that were
443	443	16 paid, accrued, or incurred, directly or indirectly, to
444	444	17 a person who would be a member of the same unitary
445	445	18 business group but for the fact that the person is
446	446	19 prohibited under Section 1501(a)(27) from being
447	447	20 included in the unitary business group because he or
448	448	21 she is ordinarily required to apportion business
449	449	22 income under different subsections of Section 304. The
450	450	23 addition modification required by this subparagraph
451	451	24 shall be reduced to the extent that dividends were
452	452	25 included in base income of the unitary group for the
453	453	26 same taxable year and received by the taxpayer or by a
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464	464	1 member of the taxpayer's unitary business group
465	465	2 (including amounts included in gross income under
466	466	3 Sections 951 through 964 of the Internal Revenue Code
467	467	4 and amounts included in gross income under Section 78
468	468	5 of the Internal Revenue Code) with respect to the
469	469	6 stock of the same person to whom the premiums and costs
470	470	7 were directly or indirectly paid, incurred, or
471	471	8 accrued. The preceding sentence does not apply to the
472	472	9 extent that the same dividends caused a reduction to
473	473	10 the addition modification required under Section
474	474	11 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
475	475	12 Act;
476	476	13 (D-20) For taxable years beginning on or after
477	477	14 January 1, 2002 and ending on or before December 31,
478	478	15 2006, in the case of a distribution from a qualified
479	479	16 tuition program under Section 529 of the Internal
480	480	17 Revenue Code, other than (i) a distribution from a
481	481	18 College Savings Pool created under Section 16.5 of the
482	482	19 State Treasurer Act or (ii) a distribution from the
483	483	20 Illinois Prepaid Tuition Trust Fund, an amount equal
484	484	21 to the amount excluded from gross income under Section
485	485	22 529(c)(3)(B). For taxable years beginning on or after
486	486	23 January 1, 2007, in the case of a distribution from a
487	487	24 qualified tuition program under Section 529 of the
488	488	25 Internal Revenue Code, other than (i) a distribution
489	489	26 from a College Savings Pool created under Section 16.5
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500	500	1 of the State Treasurer Act, (ii) a distribution from
501	501	2 the Illinois Prepaid Tuition Trust Fund, or (iii) a
502	502	3 distribution from a qualified tuition program under
503	503	4 Section 529 of the Internal Revenue Code that (I)
504	504	5 adopts and determines that its offering materials
505	505	6 comply with the College Savings Plans Network's
506	506	7 disclosure principles and (II) has made reasonable
507	507	8 efforts to inform in-state residents of the existence
508	508	9 of in-state qualified tuition programs by informing
509	509	10 Illinois residents directly and, where applicable, to
510	510	11 inform financial intermediaries distributing the
511	511	12 program to inform in-state residents of the existence
512	512	13 of in-state qualified tuition programs at least
513	513	14 annually, an amount equal to the amount excluded from
514	514	15 gross income under Section 529(c)(3)(B).
515	515	16 For the purposes of this subparagraph (D-20), a
516	516	17 qualified tuition program has made reasonable efforts
517	517	18 if it makes disclosures (which may use the term
518	518	19 "in-state program" or "in-state plan" and need not
519	519	20 specifically refer to Illinois or its qualified
520	520	21 programs by name) (i) directly to prospective
521	521	22 participants in its offering materials or makes a
522	522	23 public disclosure, such as a website posting; and (ii)
523	523	24 where applicable, to intermediaries selling the
524	524	25 out-of-state program in the same manner that the
525	525	26 out-of-state program distributes its offering
526	526
527	527
528	528
529	529
530	530
531	531	HB1824 - 14 - LRB104 09229 HLH 19286 b
532	532
533	533
534	534	HB1824- 15 -LRB104 09229 HLH 19286 b HB1824 - 15 - LRB104 09229 HLH 19286 b
535	535	HB1824 - 15 - LRB104 09229 HLH 19286 b
536	536	1 materials;
537	537	2 (D-20.5) For taxable years beginning on or after
538	538	3 January 1, 2018, in the case of a distribution from a
539	539	4 qualified ABLE program under Section 529A of the
540	540	5 Internal Revenue Code, other than a distribution from
541	541	6 a qualified ABLE program created under Section 16.6 of
542	542	7 the State Treasurer Act, an amount equal to the amount
543	543	8 excluded from gross income under Section 529A(c)(1)(B)
544	544	9 of the Internal Revenue Code;
545	545	10 (D-21) For taxable years beginning on or after
546	546	11 January 1, 2007, in the case of transfer of moneys from
547	547	12 a qualified tuition program under Section 529 of the
548	548	13 Internal Revenue Code that is administered by the
549	549	14 State to an out-of-state program, an amount equal to
550	550	15 the amount of moneys previously deducted from base
551	551	16 income under subsection (a)(2)(Y) of this Section;
552	552	17 (D-21.5) For taxable years beginning on or after
553	553	18 January 1, 2018, in the case of the transfer of moneys
554	554	19 from a qualified tuition program under Section 529 or
555	555	20 a qualified ABLE program under Section 529A of the
556	556	21 Internal Revenue Code that is administered by this
557	557	22 State to an ABLE account established under an
558	558	23 out-of-state ABLE account program, an amount equal to
559	559	24 the contribution component of the transferred amount
560	560	25 that was previously deducted from base income under
561	561	26 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
562	562
563	563
564	564
565	565
566	566
567	567	HB1824 - 15 - LRB104 09229 HLH 19286 b
568	568
569	569
570	570	HB1824- 16 -LRB104 09229 HLH 19286 b HB1824 - 16 - LRB104 09229 HLH 19286 b
571	571	HB1824 - 16 - LRB104 09229 HLH 19286 b
572	572	1 Section;
573	573	2 (D-22) For taxable years beginning on or after
574	574	3 January 1, 2009, and prior to January 1, 2018, in the
575	575	4 case of a nonqualified withdrawal or refund of moneys
576	576	5 from a qualified tuition program under Section 529 of
577	577	6 the Internal Revenue Code administered by the State
578	578	7 that is not used for qualified expenses at an eligible
579	579	8 education institution, an amount equal to the
580	580	9 contribution component of the nonqualified withdrawal
581	581	10 or refund that was previously deducted from base
582	582	11 income under subsection (a)(2)(y) of this Section,
583	583	12 provided that the withdrawal or refund did not result
584	584	13 from the beneficiary's death or disability. For
585	585	14 taxable years beginning on or after January 1, 2018:
586	586	15 (1) in the case of a nonqualified withdrawal or
587	587	16 refund, as defined under Section 16.5 of the State
588	588	17 Treasurer Act, of moneys from a qualified tuition
589	589	18 program under Section 529 of the Internal Revenue Code
590	590	19 administered by the State, an amount equal to the
591	591	20 contribution component of the nonqualified withdrawal
592	592	21 or refund that was previously deducted from base
593	593	22 income under subsection (a)(2)(Y) of this Section, and
594	594	23 (2) in the case of a nonqualified withdrawal or refund
595	595	24 from a qualified ABLE program under Section 529A of
596	596	25 the Internal Revenue Code administered by the State
597	597	26 that is not used for qualified disability expenses, an
598	598
599	599
600	600
601	601
602	602
603	603	HB1824 - 16 - LRB104 09229 HLH 19286 b
604	604
605	605
606	606	HB1824- 17 -LRB104 09229 HLH 19286 b HB1824 - 17 - LRB104 09229 HLH 19286 b
607	607	HB1824 - 17 - LRB104 09229 HLH 19286 b
608	608	1 amount equal to the contribution component of the
609	609	2 nonqualified withdrawal or refund that was previously
610	610	3 deducted from base income under subsection (a)(2)(HH)
611	611	4 of this Section;
612	612	5 (D-23) An amount equal to the credit allowable to
613	613	6 the taxpayer under Section 218(a) of this Act,
614	614	7 determined without regard to Section 218(c) of this
615	615	8 Act;
616	616	9 (D-24) For taxable years ending on or after
617	617	10 December 31, 2017, an amount equal to the deduction
618	618	11 allowed under Section 199 of the Internal Revenue Code
619	619	12 for the taxable year;
620	620	13 (D-25) In the case of a resident, an amount equal
621	621	14 to the amount of tax for which a credit is allowed
622	622	15 pursuant to Section 201(p)(7) of this Act;
623	623	16 and by deducting from the total so obtained the sum of the
624	624	17 following amounts:
625	625	18 (E) For taxable years ending before December 31,
626	626	19 2001, any amount included in such total in respect of
627	627	20 any compensation (including but not limited to any
628	628	21 compensation paid or accrued to a serviceman while a
629	629	22 prisoner of war or missing in action) paid to a
630	630	23 resident by reason of being on active duty in the Armed
631	631	24 Forces of the United States and in respect of any
632	632	25 compensation paid or accrued to a resident who as a
633	633	26 governmental employee was a prisoner of war or missing
634	634
635	635
636	636
637	637
638	638
639	639	HB1824 - 17 - LRB104 09229 HLH 19286 b
640	640
641	641
642	642	HB1824- 18 -LRB104 09229 HLH 19286 b HB1824 - 18 - LRB104 09229 HLH 19286 b
643	643	HB1824 - 18 - LRB104 09229 HLH 19286 b
644	644	1 in action, and in respect of any compensation paid to a
645	645	2 resident in 1971 or thereafter for annual training
646	646	3 performed pursuant to Sections 502 and 503, Title 32,
647	647	4 United States Code as a member of the Illinois
648	648	5 National Guard or, beginning with taxable years ending
649	649	6 on or after December 31, 2007, the National Guard of
650	650	7 any other state. For taxable years ending on or after
651	651	8 December 31, 2001, any amount included in such total
652	652	9 in respect of any compensation (including but not
653	653	10 limited to any compensation paid or accrued to a
654	654	11 serviceman while a prisoner of war or missing in
655	655	12 action) paid to a resident by reason of being a member
656	656	13 of any component of the Armed Forces of the United
657	657	14 States and in respect of any compensation paid or
658	658	15 accrued to a resident who as a governmental employee
659	659	16 was a prisoner of war or missing in action, and in
660	660	17 respect of any compensation paid to a resident in 2001
661	661	18 or thereafter by reason of being a member of the
662	662	19 Illinois National Guard or, beginning with taxable
663	663	20 years ending on or after December 31, 2007, the
664	664	21 National Guard of any other state. The provisions of
665	665	22 this subparagraph (E) are exempt from the provisions
666	666	23 of Section 250;
667	667	24 (F) An amount equal to all amounts included in
668	668	25 such total pursuant to the provisions of Sections
669	669	26 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
670	670
671	671
672	672
673	673
674	674
675	675	HB1824 - 18 - LRB104 09229 HLH 19286 b
676	676
677	677
678	678	HB1824- 19 -LRB104 09229 HLH 19286 b HB1824 - 19 - LRB104 09229 HLH 19286 b
679	679	HB1824 - 19 - LRB104 09229 HLH 19286 b
680	680	1 408 of the Internal Revenue Code, or included in such
681	681	2 total as distributions under the provisions of any
682	682	3 retirement or disability plan for employees of any
683	683	4 governmental agency or unit, or retirement payments to
684	684	5 retired partners, which payments are excluded in
685	685	6 computing net earnings from self employment by Section
686	686	7 1402 of the Internal Revenue Code and regulations
687	687	8 adopted pursuant thereto;
688	688	9 (G) The valuation limitation amount;
689	689	10 (H) An amount equal to the amount of any tax
690	690	11 imposed by this Act which was refunded to the taxpayer
691	691	12 and included in such total for the taxable year;
692	692	13 (I) An amount equal to all amounts included in
693	693	14 such total pursuant to the provisions of Section 111
694	694	15 of the Internal Revenue Code as a recovery of items
695	695	16 previously deducted from adjusted gross income in the
696	696	17 computation of taxable income;
697	697	18 (J) An amount equal to those dividends included in
698	698	19 such total which were paid by a corporation which
699	699	20 conducts business operations in a River Edge
700	700	21 Redevelopment Zone or zones created under the River
701	701	22 Edge Redevelopment Zone Act, and conducts
702	702	23 substantially all of its operations in a River Edge
703	703	24 Redevelopment Zone or zones. This subparagraph (J) is
704	704	25 exempt from the provisions of Section 250;
705	705	26 (K) An amount equal to those dividends included in
706	706
707	707
708	708
709	709
710	710
711	711	HB1824 - 19 - LRB104 09229 HLH 19286 b
712	712
713	713
714	714	HB1824- 20 -LRB104 09229 HLH 19286 b HB1824 - 20 - LRB104 09229 HLH 19286 b
715	715	HB1824 - 20 - LRB104 09229 HLH 19286 b
716	716	1 such total that were paid by a corporation that
717	717	2 conducts business operations in a federally designated
718	718	3 Foreign Trade Zone or Sub-Zone and that is designated
719	719	4 a High Impact Business located in Illinois; provided
720	720	5 that dividends eligible for the deduction provided in
721	721	6 subparagraph (J) of paragraph (2) of this subsection
722	722	7 shall not be eligible for the deduction provided under
723	723	8 this subparagraph (K);
724	724	9 (L) For taxable years ending after December 31,
725	725	10 1983, an amount equal to all social security benefits
726	726	11 and railroad retirement benefits included in such
727	727	12 total pursuant to Sections 72(r) and 86 of the
728	728	13 Internal Revenue Code;
729	729	14 (M) With the exception of any amounts subtracted
730	730	15 under subparagraph (N), an amount equal to the sum of
731	731	16 all amounts disallowed as deductions by (i) Sections
732	732	17 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
733	733	18 and all amounts of expenses allocable to interest and
734	734	19 disallowed as deductions by Section 265(a)(1) of the
735	735	20 Internal Revenue Code; and (ii) for taxable years
736	736	21 ending on or after August 13, 1999, Sections
737	737	22 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
738	738	23 Internal Revenue Code, plus, for taxable years ending
739	739	24 on or after December 31, 2011, Section 45G(e)(3) of
740	740	25 the Internal Revenue Code and, for taxable years
741	741	26 ending on or after December 31, 2008, any amount
742	742
743	743
744	744
745	745
746	746
747	747	HB1824 - 20 - LRB104 09229 HLH 19286 b
748	748
749	749
750	750	HB1824- 21 -LRB104 09229 HLH 19286 b HB1824 - 21 - LRB104 09229 HLH 19286 b
751	751	HB1824 - 21 - LRB104 09229 HLH 19286 b
752	752	1 included in gross income under Section 87 of the
753	753	2 Internal Revenue Code; the provisions of this
754	754	3 subparagraph are exempt from the provisions of Section
755	755	4 250;
756	756	5 (N) An amount equal to all amounts included in
757	757	6 such total which are exempt from taxation by this
758	758	7 State either by reason of its statutes or Constitution
759	759	8 or by reason of the Constitution, treaties or statutes
760	760	9 of the United States; provided that, in the case of any
761	761	10 statute of this State that exempts income derived from
762	762	11 bonds or other obligations from the tax imposed under
763	763	12 this Act, the amount exempted shall be the interest
764	764	13 net of bond premium amortization;
765	765	14 (O) An amount equal to any contribution made to a
766	766	15 job training project established pursuant to the Tax
767	767	16 Increment Allocation Redevelopment Act;
768	768	17 (P) An amount equal to the amount of the deduction
769	769	18 used to compute the federal income tax credit for
770	770	19 restoration of substantial amounts held under claim of
771	771	20 right for the taxable year pursuant to Section 1341 of
772	772	21 the Internal Revenue Code or of any itemized deduction
773	773	22 taken from adjusted gross income in the computation of
774	774	23 taxable income for restoration of substantial amounts
775	775	24 held under claim of right for the taxable year;
776	776	25 (Q) An amount equal to any amounts included in
777	777	26 such total, received by the taxpayer as an
778	778
779	779
780	780
781	781
782	782
783	783	HB1824 - 21 - LRB104 09229 HLH 19286 b
784	784
785	785
786	786	HB1824- 22 -LRB104 09229 HLH 19286 b HB1824 - 22 - LRB104 09229 HLH 19286 b
787	787	HB1824 - 22 - LRB104 09229 HLH 19286 b
788	788	1 acceleration in the payment of life, endowment or
789	789	2 annuity benefits in advance of the time they would
790	790	3 otherwise be payable as an indemnity for a terminal
791	791	4 illness;
792	792	5 (R) An amount equal to the amount of any federal or
793	793	6 State bonus paid to veterans of the Persian Gulf War;
794	794	7 (S) An amount, to the extent included in adjusted
795	795	8 gross income, equal to the amount of a contribution
796	796	9 made in the taxable year on behalf of the taxpayer to a
797	797	10 medical care savings account established under the
798	798	11 Medical Care Savings Account Act or the Medical Care
799	799	12 Savings Account Act of 2000 to the extent the
800	800	13 contribution is accepted by the account administrator
801	801	14 as provided in that Act;
802	802	15 (T) An amount, to the extent included in adjusted
803	803	16 gross income, equal to the amount of interest earned
804	804	17 in the taxable year on a medical care savings account
805	805	18 established under the Medical Care Savings Account Act
806	806	19 or the Medical Care Savings Account Act of 2000 on
807	807	20 behalf of the taxpayer, other than interest added
808	808	21 pursuant to item (D-5) of this paragraph (2);
809	809	22 (U) For one taxable year beginning on or after
810	810	23 January 1, 1994, an amount equal to the total amount of
811	811	24 tax imposed and paid under subsections (a) and (b) of
812	812	25 Section 201 of this Act on grant amounts received by
813	813	26 the taxpayer under the Nursing Home Grant Assistance
814	814
815	815
816	816
817	817
818	818
819	819	HB1824 - 22 - LRB104 09229 HLH 19286 b
820	820
821	821
822	822	HB1824- 23 -LRB104 09229 HLH 19286 b HB1824 - 23 - LRB104 09229 HLH 19286 b
823	823	HB1824 - 23 - LRB104 09229 HLH 19286 b
824	824	1 Act during the taxpayer's taxable years 1992 and 1993;
825	825	2 (V) Beginning with tax years ending on or after
826	826	3 December 31, 1995 and ending with tax years ending on
827	827	4 or before December 31, 2004, an amount equal to the
828	828	5 amount paid by a taxpayer who is a self-employed
829	829	6 taxpayer, a partner of a partnership, or a shareholder
830	830	7 in a Subchapter S corporation for health insurance or
831	831	8 long-term care insurance for that taxpayer or that
832	832	9 taxpayer's spouse or dependents, to the extent that
833	833	10 the amount paid for that health insurance or long-term
834	834	11 care insurance may be deducted under Section 213 of
835	835	12 the Internal Revenue Code, has not been deducted on
836	836	13 the federal income tax return of the taxpayer, and
837	837	14 does not exceed the taxable income attributable to
838	838	15 that taxpayer's income, self-employment income, or
839	839	16 Subchapter S corporation income; except that no
840	840	17 deduction shall be allowed under this item (V) if the
841	841	18 taxpayer is eligible to participate in any health
842	842	19 insurance or long-term care insurance plan of an
843	843	20 employer of the taxpayer or the taxpayer's spouse. The
844	844	21 amount of the health insurance and long-term care
845	845	22 insurance subtracted under this item (V) shall be
846	846	23 determined by multiplying total health insurance and
847	847	24 long-term care insurance premiums paid by the taxpayer
848	848	25 times a number that represents the fractional
849	849	26 percentage of eligible medical expenses under Section
850	850
851	851
852	852
853	853
854	854
855	855	HB1824 - 23 - LRB104 09229 HLH 19286 b
856	856
857	857
858	858	HB1824- 24 -LRB104 09229 HLH 19286 b HB1824 - 24 - LRB104 09229 HLH 19286 b
859	859	HB1824 - 24 - LRB104 09229 HLH 19286 b
860	860	1 213 of the Internal Revenue Code of 1986 not actually
861	861	2 deducted on the taxpayer's federal income tax return;
862	862	3 (W) For taxable years beginning on or after
863	863	4 January 1, 1998, all amounts included in the
864	864	5 taxpayer's federal gross income in the taxable year
865	865	6 from amounts converted from a regular IRA to a Roth
866	866	7 IRA. This paragraph is exempt from the provisions of
867	867	8 Section 250;
868	868	9 (X) For taxable year 1999 and thereafter, an
869	869	10 amount equal to the amount of any (i) distributions,
870	870	11 to the extent includible in gross income for federal
871	871	12 income tax purposes, made to the taxpayer because of
872	872	13 his or her status as a victim of persecution for racial
873	873	14 or religious reasons by Nazi Germany or any other Axis
874	874	15 regime or as an heir of the victim and (ii) items of
875	875	16 income, to the extent includible in gross income for
876	876	17 federal income tax purposes, attributable to, derived
877	877	18 from or in any way related to assets stolen from,
878	878	19 hidden from, or otherwise lost to a victim of
879	879	20 persecution for racial or religious reasons by Nazi
880	880	21 Germany or any other Axis regime immediately prior to,
881	881	22 during, and immediately after World War II, including,
882	882	23 but not limited to, interest on the proceeds
883	883	24 receivable as insurance under policies issued to a
884	884	25 victim of persecution for racial or religious reasons
885	885	26 by Nazi Germany or any other Axis regime by European
886	886
887	887
888	888
889	889
890	890
891	891	HB1824 - 24 - LRB104 09229 HLH 19286 b
892	892
893	893
894	894	HB1824- 25 -LRB104 09229 HLH 19286 b HB1824 - 25 - LRB104 09229 HLH 19286 b
895	895	HB1824 - 25 - LRB104 09229 HLH 19286 b
896	896	1 insurance companies immediately prior to and during
897	897	2 World War II; provided, however, this subtraction from
898	898	3 federal adjusted gross income does not apply to assets
899	899	4 acquired with such assets or with the proceeds from
900	900	5 the sale of such assets; provided, further, this
901	901	6 paragraph shall only apply to a taxpayer who was the
902	902	7 first recipient of such assets after their recovery
903	903	8 and who is a victim of persecution for racial or
904	904	9 religious reasons by Nazi Germany or any other Axis
905	905	10 regime or as an heir of the victim. The amount of and
906	906	11 the eligibility for any public assistance, benefit, or
907	907	12 similar entitlement is not affected by the inclusion
908	908	13 of items (i) and (ii) of this paragraph in gross income
909	909	14 for federal income tax purposes. This paragraph is
910	910	15 exempt from the provisions of Section 250;
911	911	16 (Y) For taxable years beginning on or after
912	912	17 January 1, 2002 and ending on or before December 31,
913	913	18 2004, moneys contributed in the taxable year to a
914	914	19 College Savings Pool account under Section 16.5 of the
915	915	20 State Treasurer Act, except that amounts excluded from
916	916	21 gross income under Section 529(c)(3)(C)(i) of the
917	917	22 Internal Revenue Code shall not be considered moneys
918	918	23 contributed under this subparagraph (Y). For taxable
919	919	24 years beginning on or after January 1, 2005, a maximum
920	920	25 of $10,000 contributed in the taxable year to (i) a
921	921	26 College Savings Pool account under Section 16.5 of the
922	922
923	923
924	924
925	925
926	926
927	927	HB1824 - 25 - LRB104 09229 HLH 19286 b
928	928
929	929
930	930	HB1824- 26 -LRB104 09229 HLH 19286 b HB1824 - 26 - LRB104 09229 HLH 19286 b
931	931	HB1824 - 26 - LRB104 09229 HLH 19286 b
932	932	1 State Treasurer Act or (ii) the Illinois Prepaid
933	933	2 Tuition Trust Fund, except that amounts excluded from
934	934	3 gross income under Section 529(c)(3)(C)(i) of the
935	935	4 Internal Revenue Code shall not be considered moneys
936	936	5 contributed under this subparagraph (Y). For purposes
937	937	6 of this subparagraph, contributions made by an
938	938	7 employer on behalf of an employee, or matching
939	939	8 contributions made by an employee, shall be treated as
940	940	9 made by the employee. This subparagraph (Y) is exempt
941	941	10 from the provisions of Section 250;
942	942	11 (Z) For taxable years 2001 and thereafter, for the
943	943	12 taxable year in which the bonus depreciation deduction
944	944	13 is taken on the taxpayer's federal income tax return
945	945	14 under subsection (k) of Section 168 of the Internal
946	946	15 Revenue Code and for each applicable taxable year
947	947	16 thereafter, an amount equal to "x", where:
948	948	17 (1) "y" equals the amount of the depreciation
949	949	18 deduction taken for the taxable year on the
950	950	19 taxpayer's federal income tax return on property
951	951	20 for which the bonus depreciation deduction was
952	952	21 taken in any year under subsection (k) of Section
953	953	22 168 of the Internal Revenue Code, but not
954	954	23 including the bonus depreciation deduction;
955	955	24 (2) for taxable years ending on or before
956	956	25 December 31, 2005, "x" equals "y" multiplied by 30
957	957	26 and then divided by 70 (or "y" multiplied by
958	958
959	959
960	960
961	961
962	962
963	963	HB1824 - 26 - LRB104 09229 HLH 19286 b
964	964
965	965
966	966	HB1824- 27 -LRB104 09229 HLH 19286 b HB1824 - 27 - LRB104 09229 HLH 19286 b
967	967	HB1824 - 27 - LRB104 09229 HLH 19286 b
968	968	1 0.429); and
969	969	2 (3) for taxable years ending after December
970	970	3 31, 2005:
971	971	4 (i) for property on which a bonus
972	972	5 depreciation deduction of 30% of the adjusted
973	973	6 basis was taken, "x" equals "y" multiplied by
974	974	7 30 and then divided by 70 (or "y" multiplied
975	975	8 by 0.429);
976	976	9 (ii) for property on which a bonus
977	977	10 depreciation deduction of 50% of the adjusted
978	978	11 basis was taken, "x" equals "y" multiplied by
979	979	12 1.0;
980	980	13 (iii) for property on which a bonus
981	981	14 depreciation deduction of 100% of the adjusted
982	982	15 basis was taken in a taxable year ending on or
983	983	16 after December 31, 2021, "x" equals the
984	984	17 depreciation deduction that would be allowed
985	985	18 on that property if the taxpayer had made the
986	986	19 election under Section 168(k)(7) of the
987	987	20 Internal Revenue Code to not claim bonus
988	988	21 depreciation on that property; and
989	989	22 (iv) for property on which a bonus
990	990	23 depreciation deduction of a percentage other
991	991	24 than 30%, 50% or 100% of the adjusted basis
992	992	25 was taken in a taxable year ending on or after
993	993	26 December 31, 2021, "x" equals "y" multiplied
994	994
995	995
996	996
997	997
998	998
999	999	HB1824 - 27 - LRB104 09229 HLH 19286 b
1000	1000
1001	1001
1002	1002	HB1824- 28 -LRB104 09229 HLH 19286 b HB1824 - 28 - LRB104 09229 HLH 19286 b
1003	1003	HB1824 - 28 - LRB104 09229 HLH 19286 b
1004	1004	1 by 100 times the percentage bonus depreciation
1005	1005	2 on the property (that is, 100(bonus%)) and
1006	1006	3 then divided by 100 times 1 minus the
1007	1007	4 percentage bonus depreciation on the property
1008	1008	5 (that is, 100(1-bonus%)).
1009	1009	6 The aggregate amount deducted under this
1010	1010	7 subparagraph in all taxable years for any one piece of
1011	1011	8 property may not exceed the amount of the bonus
1012	1012	9 depreciation deduction taken on that property on the
1013	1013	10 taxpayer's federal income tax return under subsection
1014	1014	11 (k) of Section 168 of the Internal Revenue Code. This
1015	1015	12 subparagraph (Z) is exempt from the provisions of
1016	1016	13 Section 250;
1017	1017	14 (AA) If the taxpayer sells, transfers, abandons,
1018	1018	15 or otherwise disposes of property for which the
1019	1019	16 taxpayer was required in any taxable year to make an
1020	1020	17 addition modification under subparagraph (D-15), then
1021	1021	18 an amount equal to that addition modification.
1022	1022	19 If the taxpayer continues to own property through
1023	1023	20 the last day of the last tax year for which a
1024	1024	21 subtraction is allowed with respect to that property
1025	1025	22 under subparagraph (Z) and for which the taxpayer was
1026	1026	23 required in any taxable year to make an addition
1027	1027	24 modification under subparagraph (D-15), then an amount
1028	1028	25 equal to that addition modification.
1029	1029	26 The taxpayer is allowed to take the deduction
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035	HB1824 - 28 - LRB104 09229 HLH 19286 b
1036	1036
1037	1037
1038	1038	HB1824- 29 -LRB104 09229 HLH 19286 b HB1824 - 29 - LRB104 09229 HLH 19286 b
1039	1039	HB1824 - 29 - LRB104 09229 HLH 19286 b
1040	1040	1 under this subparagraph only once with respect to any
1041	1041	2 one piece of property.
1042	1042	3 This subparagraph (AA) is exempt from the
1043	1043	4 provisions of Section 250;
1044	1044	5 (BB) Any amount included in adjusted gross income,
1045	1045	6 other than salary, received by a driver in a
1046	1046	7 ridesharing arrangement using a motor vehicle;
1047	1047	8 (CC) The amount of (i) any interest income (net of
1048	1048	9 the deductions allocable thereto) taken into account
1049	1049	10 for the taxable year with respect to a transaction
1050	1050	11 with a taxpayer that is required to make an addition
1051	1051	12 modification with respect to such transaction under
1052	1052	13 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1053	1053	14 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1054	1054	15 the amount of that addition modification, and (ii) any
1055	1055	16 income from intangible property (net of the deductions
1056	1056	17 allocable thereto) taken into account for the taxable
1057	1057	18 year with respect to a transaction with a taxpayer
1058	1058	19 that is required to make an addition modification with
1059	1059	20 respect to such transaction under Section
1060	1060	21 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
1061	1061	22 203(d)(2)(D-8), but not to exceed the amount of that
1062	1062	23 addition modification. This subparagraph (CC) is
1063	1063	24 exempt from the provisions of Section 250;
1064	1064	25 (DD) An amount equal to the interest income taken
1065	1065	26 into account for the taxable year (net of the
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071	HB1824 - 29 - LRB104 09229 HLH 19286 b
1072	1072
1073	1073
1074	1074	HB1824- 30 -LRB104 09229 HLH 19286 b HB1824 - 30 - LRB104 09229 HLH 19286 b
1075	1075	HB1824 - 30 - LRB104 09229 HLH 19286 b
1076	1076	1 deductions allocable thereto) with respect to
1077	1077	2 transactions with (i) a foreign person who would be a
1078	1078	3 member of the taxpayer's unitary business group but
1079	1079	4 for the fact that the foreign person's business
1080	1080	5 activity outside the United States is 80% or more of
1081	1081	6 that person's total business activity and (ii) for
1082	1082	7 taxable years ending on or after December 31, 2008, to
1083	1083	8 a person who would be a member of the same unitary
1084	1084	9 business group but for the fact that the person is
1085	1085	10 prohibited under Section 1501(a)(27) from being
1086	1086	11 included in the unitary business group because he or
1087	1087	12 she is ordinarily required to apportion business
1088	1088	13 income under different subsections of Section 304, but
1089	1089	14 not to exceed the addition modification required to be
1090	1090	15 made for the same taxable year under Section
1091	1091	16 203(a)(2)(D-17) for interest paid, accrued, or
1092	1092	17 incurred, directly or indirectly, to the same person.
1093	1093	18 This subparagraph (DD) is exempt from the provisions
1094	1094	19 of Section 250;
1095	1095	20 (EE) An amount equal to the income from intangible
1096	1096	21 property taken into account for the taxable year (net
1097	1097	22 of the deductions allocable thereto) with respect to
1098	1098	23 transactions with (i) a foreign person who would be a
1099	1099	24 member of the taxpayer's unitary business group but
1100	1100	25 for the fact that the foreign person's business
1101	1101	26 activity outside the United States is 80% or more of
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107	HB1824 - 30 - LRB104 09229 HLH 19286 b
1108	1108
1109	1109
1110	1110	HB1824- 31 -LRB104 09229 HLH 19286 b HB1824 - 31 - LRB104 09229 HLH 19286 b
1111	1111	HB1824 - 31 - LRB104 09229 HLH 19286 b
1112	1112	1 that person's total business activity and (ii) for
1113	1113	2 taxable years ending on or after December 31, 2008, to
1114	1114	3 a person who would be a member of the same unitary
1115	1115	4 business group but for the fact that the person is
1116	1116	5 prohibited under Section 1501(a)(27) from being
1117	1117	6 included in the unitary business group because he or
1118	1118	7 she is ordinarily required to apportion business
1119	1119	8 income under different subsections of Section 304, but
1120	1120	9 not to exceed the addition modification required to be
1121	1121	10 made for the same taxable year under Section
1122	1122	11 203(a)(2)(D-18) for intangible expenses and costs
1123	1123	12 paid, accrued, or incurred, directly or indirectly, to
1124	1124	13 the same foreign person. This subparagraph (EE) is
1125	1125	14 exempt from the provisions of Section 250;
1126	1126	15 (FF) An amount equal to any amount awarded to the
1127	1127	16 taxpayer during the taxable year by the Court of
1128	1128	17 Claims under subsection (c) of Section 8 of the Court
1129	1129	18 of Claims Act for time unjustly served in a State
1130	1130	19 prison. This subparagraph (FF) is exempt from the
1131	1131	20 provisions of Section 250;
1132	1132	21 (GG) For taxable years ending on or after December
1133	1133	22 31, 2011, in the case of a taxpayer who was required to
1134	1134	23 add back any insurance premiums under Section
1135	1135	24 203(a)(2)(D-19), such taxpayer may elect to subtract
1136	1136	25 that part of a reimbursement received from the
1137	1137	26 insurance company equal to the amount of the expense
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142
1143	1143	HB1824 - 31 - LRB104 09229 HLH 19286 b
1144	1144
1145	1145
1146	1146	HB1824- 32 -LRB104 09229 HLH 19286 b HB1824 - 32 - LRB104 09229 HLH 19286 b
1147	1147	HB1824 - 32 - LRB104 09229 HLH 19286 b
1148	1148	1 or loss (including expenses incurred by the insurance
1149	1149	2 company) that would have been taken into account as a
1150	1150	3 deduction for federal income tax purposes if the
1151	1151	4 expense or loss had been uninsured. If a taxpayer
1152	1152	5 makes the election provided for by this subparagraph
1153	1153	6 (GG), the insurer to which the premiums were paid must
1154	1154	7 add back to income the amount subtracted by the
1155	1155	8 taxpayer pursuant to this subparagraph (GG). This
1156	1156	9 subparagraph (GG) is exempt from the provisions of
1157	1157	10 Section 250;
1158	1158	11 (HH) For taxable years beginning on or after
1159	1159	12 January 1, 2018 and prior to January 1, 2028, a maximum
1160	1160	13 of $10,000 contributed in the taxable year to a
1161	1161	14 qualified ABLE account under Section 16.6 of the State
1162	1162	15 Treasurer Act, except that amounts excluded from gross
1163	1163	16 income under Section 529(c)(3)(C)(i) or Section
1164	1164	17 529A(c)(1)(C) of the Internal Revenue Code shall not
1165	1165	18 be considered moneys contributed under this
1166	1166	19 subparagraph (HH). For purposes of this subparagraph
1167	1167	20 (HH), contributions made by an employer on behalf of
1168	1168	21 an employee, or matching contributions made by an
1169	1169	22 employee, shall be treated as made by the employee;
1170	1170	23 (II) For taxable years that begin on or after
1171	1171	24 January 1, 2021 and begin before January 1, 2026, the
1172	1172	25 amount that is included in the taxpayer's federal
1173	1173	26 adjusted gross income pursuant to Section 61 of the
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178
1179	1179	HB1824 - 32 - LRB104 09229 HLH 19286 b
1180	1180
1181	1181
1182	1182	HB1824- 33 -LRB104 09229 HLH 19286 b HB1824 - 33 - LRB104 09229 HLH 19286 b
1183	1183	HB1824 - 33 - LRB104 09229 HLH 19286 b
1184	1184	1 Internal Revenue Code as discharge of indebtedness
1185	1185	2 attributable to student loan forgiveness and that is
1186	1186	3 not excluded from the taxpayer's federal adjusted
1187	1187	4 gross income pursuant to paragraph (5) of subsection
1188	1188	5 (f) of Section 108 of the Internal Revenue Code;
1189	1189	6 (JJ) For taxable years beginning on or after
1190	1190	7 January 1, 2023, for any cannabis establishment
1191	1191	8 operating in this State and licensed under the
1192	1192	9 Cannabis Regulation and Tax Act or any cannabis
1193	1193	10 cultivation center or medical cannabis dispensing
1194	1194	11 organization operating in this State and licensed
1195	1195	12 under the Compassionate Use of Medical Cannabis
1196	1196	13 Program Act, an amount equal to the deductions that
1197	1197	14 were disallowed under Section 280E of the Internal
1198	1198	15 Revenue Code for the taxable year and that would not be
1199	1199	16 added back under this subsection. The provisions of
1200	1200	17 this subparagraph (JJ) are exempt from the provisions
1201	1201	18 of Section 250; and
1202	1202	19 (KK) To the extent includible in gross income for
1203	1203	20 federal income tax purposes, any amount awarded or
1204	1204	21 paid to the taxpayer as a result of a judgment or
1205	1205	22 settlement for fertility fraud as provided in Section
1206	1206	23 15 of the Illinois Fertility Fraud Act, donor
1207	1207	24 fertility fraud as provided in Section 20 of the
1208	1208	25 Illinois Fertility Fraud Act, or similar action in
1209	1209	26 another state; and
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214
1215	1215	HB1824 - 33 - LRB104 09229 HLH 19286 b
1216	1216
1217	1217
1218	1218	HB1824- 34 -LRB104 09229 HLH 19286 b HB1824 - 34 - LRB104 09229 HLH 19286 b
1219	1219	HB1824 - 34 - LRB104 09229 HLH 19286 b
1220	1220	1 (LL) For taxable years beginning on or after
1221	1221	2 January 1, 2026, if the taxpayer is a qualified
1222	1222	3 worker, as defined in the Workforce Development
1223	1223	4 through Charitable Loan Repayment Act, an amount equal
1224	1224	5 to the amount included in the taxpayer's federal
1225	1225	6 adjusted gross income that is attributable to student
1226	1226	7 loan repayment assistance received by the taxpayer
1227	1227	8 during the taxable year from a qualified community
1228	1228	9 foundation under the provisions of the Workforce
1229	1229	10 Development through Through Charitable Loan Repayment
1230	1230	11 Act.
1231	1231	12 This subparagraph (LL) is exempt from the
1232	1232	13 provisions of Section 250; and .
1233	1233	14 (MM) (LL) For taxable years beginning on or after
1234	1234	15 January 1, 2025, if the taxpayer is an eligible
1235	1235	16 resident as defined in the Medical Debt Relief Act, an
1236	1236	17 amount equal to the amount included in the taxpayer's
1237	1237	18 federal adjusted gross income that is attributable to
1238	1238	19 medical debt relief received by the taxpayer during
1239	1239	20 the taxable year from a nonprofit medical debt relief
1240	1240	21 coordinator under the provisions of the Medical Debt
1241	1241	22 Relief Act. This subparagraph (MM) (LL) is exempt from
1242	1242	23 the provisions of Section 250.
1243	1243	24 (b) Corporations.
1244	1244	25 (1) In general. In the case of a corporation, base
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250	HB1824 - 34 - LRB104 09229 HLH 19286 b
1251	1251
1252	1252
1253	1253	HB1824- 35 -LRB104 09229 HLH 19286 b HB1824 - 35 - LRB104 09229 HLH 19286 b
1254	1254	HB1824 - 35 - LRB104 09229 HLH 19286 b
1255	1255	1 income means an amount equal to the taxpayer's taxable
1256	1256	2 income for the taxable year as modified by paragraph (2).
1257	1257	3 (2) Modifications. The taxable income referred to in
1258	1258	4 paragraph (1) shall be modified by adding thereto the sum
1259	1259	5 of the following amounts:
1260	1260	6 (A) An amount equal to all amounts paid or accrued
1261	1261	7 to the taxpayer as interest and all distributions
1262	1262	8 received from regulated investment companies during
1263	1263	9 the taxable year to the extent excluded from gross
1264	1264	10 income in the computation of taxable income;
1265	1265	11 (B) An amount equal to the amount of tax imposed by
1266	1266	12 this Act to the extent deducted from gross income in
1267	1267	13 the computation of taxable income for the taxable
1268	1268	14 year;
1269	1269	15 (C) In the case of a regulated investment company,
1270	1270	16 an amount equal to the excess of (i) the net long-term
1271	1271	17 capital gain for the taxable year, over (ii) the
1272	1272	18 amount of the capital gain dividends designated as
1273	1273	19 such in accordance with Section 852(b)(3)(C) of the
1274	1274	20 Internal Revenue Code and any amount designated under
1275	1275	21 Section 852(b)(3)(D) of the Internal Revenue Code,
1276	1276	22 attributable to the taxable year (this amendatory Act
1277	1277	23 of 1995 (Public Act 89-89) is declarative of existing
1278	1278	24 law and is not a new enactment);
1279	1279	25 (D) The amount of any net operating loss deduction
1280	1280	26 taken in arriving at taxable income, other than a net
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286	HB1824 - 35 - LRB104 09229 HLH 19286 b
1287	1287
1288	1288
1289	1289	HB1824- 36 -LRB104 09229 HLH 19286 b HB1824 - 36 - LRB104 09229 HLH 19286 b
1290	1290	HB1824 - 36 - LRB104 09229 HLH 19286 b
1291	1291	1 operating loss carried forward from a taxable year
1292	1292	2 ending prior to December 31, 1986;
1293	1293	3 (E) For taxable years in which a net operating
1294	1294	4 loss carryback or carryforward from a taxable year
1295	1295	5 ending prior to December 31, 1986 is an element of
1296	1296	6 taxable income under paragraph (1) of subsection (e)
1297	1297	7 or subparagraph (E) of paragraph (2) of subsection
1298	1298	8 (e), the amount by which addition modifications other
1299	1299	9 than those provided by this subparagraph (E) exceeded
1300	1300	10 subtraction modifications in such earlier taxable
1301	1301	11 year, with the following limitations applied in the
1302	1302	12 order that they are listed:
1303	1303	13 (i) the addition modification relating to the
1304	1304	14 net operating loss carried back or forward to the
1305	1305	15 taxable year from any taxable year ending prior to
1306	1306	16 December 31, 1986 shall be reduced by the amount
1307	1307	17 of addition modification under this subparagraph
1308	1308	18 (E) which related to that net operating loss and
1309	1309	19 which was taken into account in calculating the
1310	1310	20 base income of an earlier taxable year, and
1311	1311	21 (ii) the addition modification relating to the
1312	1312	22 net operating loss carried back or forward to the
1313	1313	23 taxable year from any taxable year ending prior to
1314	1314	24 December 31, 1986 shall not exceed the amount of
1315	1315	25 such carryback or carryforward;
1316	1316	26 For taxable years in which there is a net
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322	HB1824 - 36 - LRB104 09229 HLH 19286 b
1323	1323
1324	1324
1325	1325	HB1824- 37 -LRB104 09229 HLH 19286 b HB1824 - 37 - LRB104 09229 HLH 19286 b
1326	1326	HB1824 - 37 - LRB104 09229 HLH 19286 b
1327	1327	1 operating loss carryback or carryforward from more
1328	1328	2 than one other taxable year ending prior to December
1329	1329	3 31, 1986, the addition modification provided in this
1330	1330	4 subparagraph (E) shall be the sum of the amounts
1331	1331	5 computed independently under the preceding provisions
1332	1332	6 of this subparagraph (E) for each such taxable year;
1333	1333	7 (E-5) For taxable years ending after December 31,
1334	1334	8 1997, an amount equal to any eligible remediation
1335	1335	9 costs that the corporation deducted in computing
1336	1336	10 adjusted gross income and for which the corporation
1337	1337	11 claims a credit under subsection (l) of Section 201;
1338	1338	12 (E-10) For taxable years 2001 and thereafter, an
1339	1339	13 amount equal to the bonus depreciation deduction taken
1340	1340	14 on the taxpayer's federal income tax return for the
1341	1341	15 taxable year under subsection (k) of Section 168 of
1342	1342	16 the Internal Revenue Code;
1343	1343	17 (E-11) If the taxpayer sells, transfers, abandons,
1344	1344	18 or otherwise disposes of property for which the
1345	1345	19 taxpayer was required in any taxable year to make an
1346	1346	20 addition modification under subparagraph (E-10), then
1347	1347	21 an amount equal to the aggregate amount of the
1348	1348	22 deductions taken in all taxable years under
1349	1349	23 subparagraph (T) with respect to that property.
1350	1350	24 If the taxpayer continues to own property through
1351	1351	25 the last day of the last tax year for which a
1352	1352	26 subtraction is allowed with respect to that property
1353	1353
1354	1354
1355	1355
1356	1356
1357	1357
1358	1358	HB1824 - 37 - LRB104 09229 HLH 19286 b
1359	1359
1360	1360
1361	1361	HB1824- 38 -LRB104 09229 HLH 19286 b HB1824 - 38 - LRB104 09229 HLH 19286 b
1362	1362	HB1824 - 38 - LRB104 09229 HLH 19286 b
1363	1363	1 under subparagraph (T) and for which the taxpayer was
1364	1364	2 allowed in any taxable year to make a subtraction
1365	1365	3 modification under subparagraph (T), then an amount
1366	1366	4 equal to that subtraction modification.
1367	1367	5 The taxpayer is required to make the addition
1368	1368	6 modification under this subparagraph only once with
1369	1369	7 respect to any one piece of property;
1370	1370	8 (E-12) An amount equal to the amount otherwise
1371	1371	9 allowed as a deduction in computing base income for
1372	1372	10 interest paid, accrued, or incurred, directly or
1373	1373	11 indirectly, (i) for taxable years ending on or after
1374	1374	12 December 31, 2004, to a foreign person who would be a
1375	1375	13 member of the same unitary business group but for the
1376	1376	14 fact the foreign person's business activity outside
1377	1377	15 the United States is 80% or more of the foreign
1378	1378	16 person's total business activity and (ii) for taxable
1379	1379	17 years ending on or after December 31, 2008, to a person
1380	1380	18 who would be a member of the same unitary business
1381	1381	19 group but for the fact that the person is prohibited
1382	1382	20 under Section 1501(a)(27) from being included in the
1383	1383	21 unitary business group because he or she is ordinarily
1384	1384	22 required to apportion business income under different
1385	1385	23 subsections of Section 304. The addition modification
1386	1386	24 required by this subparagraph shall be reduced to the
1387	1387	25 extent that dividends were included in base income of
1388	1388	26 the unitary group for the same taxable year and
1389	1389
1390	1390
1391	1391
1392	1392
1393	1393
1394	1394	HB1824 - 38 - LRB104 09229 HLH 19286 b
1395	1395
1396	1396
1397	1397	HB1824- 39 -LRB104 09229 HLH 19286 b HB1824 - 39 - LRB104 09229 HLH 19286 b
1398	1398	HB1824 - 39 - LRB104 09229 HLH 19286 b
1399	1399	1 received by the taxpayer or by a member of the
1400	1400	2 taxpayer's unitary business group (including amounts
1401	1401	3 included in gross income pursuant to Sections 951
1402	1402	4 through 964 of the Internal Revenue Code and amounts
1403	1403	5 included in gross income under Section 78 of the
1404	1404	6 Internal Revenue Code) with respect to the stock of
1405	1405	7 the same person to whom the interest was paid,
1406	1406	8 accrued, or incurred.
1407	1407	9 This paragraph shall not apply to the following:
1408	1408	10 (i) an item of interest paid, accrued, or
1409	1409	11 incurred, directly or indirectly, to a person who
1410	1410	12 is subject in a foreign country or state, other
1411	1411	13 than a state which requires mandatory unitary
1412	1412	14 reporting, to a tax on or measured by net income
1413	1413	15 with respect to such interest; or
1414	1414	16 (ii) an item of interest paid, accrued, or
1415	1415	17 incurred, directly or indirectly, to a person if
1416	1416	18 the taxpayer can establish, based on a
1417	1417	19 preponderance of the evidence, both of the
1418	1418	20 following:
1419	1419	21 (a) the person, during the same taxable
1420	1420	22 year, paid, accrued, or incurred, the interest
1421	1421	23 to a person that is not a related member, and
1422	1422	24 (b) the transaction giving rise to the
1423	1423	25 interest expense between the taxpayer and the
1424	1424	26 person did not have as a principal purpose the
1425	1425
1426	1426
1427	1427
1428	1428
1429	1429
1430	1430	HB1824 - 39 - LRB104 09229 HLH 19286 b
1431	1431
1432	1432
1433	1433	HB1824- 40 -LRB104 09229 HLH 19286 b HB1824 - 40 - LRB104 09229 HLH 19286 b
1434	1434	HB1824 - 40 - LRB104 09229 HLH 19286 b
1435	1435	1 avoidance of Illinois income tax, and is paid
1436	1436	2 pursuant to a contract or agreement that
1437	1437	3 reflects an arm's-length interest rate and
1438	1438	4 terms; or
1439	1439	5 (iii) the taxpayer can establish, based on
1440	1440	6 clear and convincing evidence, that the interest
1441	1441	7 paid, accrued, or incurred relates to a contract
1442	1442	8 or agreement entered into at arm's-length rates
1443	1443	9 and terms and the principal purpose for the
1444	1444	10 payment is not federal or Illinois tax avoidance;
1445	1445	11 or
1446	1446	12 (iv) an item of interest paid, accrued, or
1447	1447	13 incurred, directly or indirectly, to a person if
1448	1448	14 the taxpayer establishes by clear and convincing
1449	1449	15 evidence that the adjustments are unreasonable; or
1450	1450	16 if the taxpayer and the Director agree in writing
1451	1451	17 to the application or use of an alternative method
1452	1452	18 of apportionment under Section 304(f).
1453	1453	19 Nothing in this subsection shall preclude the
1454	1454	20 Director from making any other adjustment
1455	1455	21 otherwise allowed under Section 404 of this Act
1456	1456	22 for any tax year beginning after the effective
1457	1457	23 date of this amendment provided such adjustment is
1458	1458	24 made pursuant to regulation adopted by the
1459	1459	25 Department and such regulations provide methods
1460	1460	26 and standards by which the Department will utilize
1461	1461
1462	1462
1463	1463
1464	1464
1465	1465
1466	1466	HB1824 - 40 - LRB104 09229 HLH 19286 b
1467	1467
1468	1468
1469	1469	HB1824- 41 -LRB104 09229 HLH 19286 b HB1824 - 41 - LRB104 09229 HLH 19286 b
1470	1470	HB1824 - 41 - LRB104 09229 HLH 19286 b
1471	1471	1 its authority under Section 404 of this Act;
1472	1472	2 (E-13) An amount equal to the amount of intangible
1473	1473	3 expenses and costs otherwise allowed as a deduction in
1474	1474	4 computing base income, and that were paid, accrued, or
1475	1475	5 incurred, directly or indirectly, (i) for taxable
1476	1476	6 years ending on or after December 31, 2004, to a
1477	1477	7 foreign person who would be a member of the same
1478	1478	8 unitary business group but for the fact that the
1479	1479	9 foreign person's business activity outside the United
1480	1480	10 States is 80% or more of that person's total business
1481	1481	11 activity and (ii) for taxable years ending on or after
1482	1482	12 December 31, 2008, to a person who would be a member of
1483	1483	13 the same unitary business group but for the fact that
1484	1484	14 the person is prohibited under Section 1501(a)(27)
1485	1485	15 from being included in the unitary business group
1486	1486	16 because he or she is ordinarily required to apportion
1487	1487	17 business income under different subsections of Section
1488	1488	18 304. The addition modification required by this
1489	1489	19 subparagraph shall be reduced to the extent that
1490	1490	20 dividends were included in base income of the unitary
1491	1491	21 group for the same taxable year and received by the
1492	1492	22 taxpayer or by a member of the taxpayer's unitary
1493	1493	23 business group (including amounts included in gross
1494	1494	24 income pursuant to Sections 951 through 964 of the
1495	1495	25 Internal Revenue Code and amounts included in gross
1496	1496	26 income under Section 78 of the Internal Revenue Code)
1497	1497
1498	1498
1499	1499
1500	1500
1501	1501
1502	1502	HB1824 - 41 - LRB104 09229 HLH 19286 b
1503	1503
1504	1504
1505	1505	HB1824- 42 -LRB104 09229 HLH 19286 b HB1824 - 42 - LRB104 09229 HLH 19286 b
1506	1506	HB1824 - 42 - LRB104 09229 HLH 19286 b
1507	1507	1 with respect to the stock of the same person to whom
1508	1508	2 the intangible expenses and costs were directly or
1509	1509	3 indirectly paid, incurred, or accrued. The preceding
1510	1510	4 sentence shall not apply to the extent that the same
1511	1511	5 dividends caused a reduction to the addition
1512	1512	6 modification required under Section 203(b)(2)(E-12) of
1513	1513	7 this Act. As used in this subparagraph, the term
1514	1514	8 "intangible expenses and costs" includes (1) expenses,
1515	1515	9 losses, and costs for, or related to, the direct or
1516	1516	10 indirect acquisition, use, maintenance or management,
1517	1517	11 ownership, sale, exchange, or any other disposition of
1518	1518	12 intangible property; (2) losses incurred, directly or
1519	1519	13 indirectly, from factoring transactions or discounting
1520	1520	14 transactions; (3) royalty, patent, technical, and
1521	1521	15 copyright fees; (4) licensing fees; and (5) other
1522	1522	16 similar expenses and costs. For purposes of this
1523	1523	17 subparagraph, "intangible property" includes patents,
1524	1524	18 patent applications, trade names, trademarks, service
1525	1525	19 marks, copyrights, mask works, trade secrets, and
1526	1526	20 similar types of intangible assets.
1527	1527	21 This paragraph shall not apply to the following:
1528	1528	22 (i) any item of intangible expenses or costs
1529	1529	23 paid, accrued, or incurred, directly or
1530	1530	24 indirectly, from a transaction with a person who
1531	1531	25 is subject in a foreign country or state, other
1532	1532	26 than a state which requires mandatory unitary
1533	1533
1534	1534
1535	1535
1536	1536
1537	1537
1538	1538	HB1824 - 42 - LRB104 09229 HLH 19286 b
1539	1539
1540	1540
1541	1541	HB1824- 43 -LRB104 09229 HLH 19286 b HB1824 - 43 - LRB104 09229 HLH 19286 b
1542	1542	HB1824 - 43 - LRB104 09229 HLH 19286 b
1543	1543	1 reporting, to a tax on or measured by net income
1544	1544	2 with respect to such item; or
1545	1545	3 (ii) any item of intangible expense or cost
1546	1546	4 paid, accrued, or incurred, directly or
1547	1547	5 indirectly, if the taxpayer can establish, based
1548	1548	6 on a preponderance of the evidence, both of the
1549	1549	7 following:
1550	1550	8 (a) the person during the same taxable
1551	1551	9 year paid, accrued, or incurred, the
1552	1552	10 intangible expense or cost to a person that is
1553	1553	11 not a related member, and
1554	1554	12 (b) the transaction giving rise to the
1555	1555	13 intangible expense or cost between the
1556	1556	14 taxpayer and the person did not have as a
1557	1557	15 principal purpose the avoidance of Illinois
1558	1558	16 income tax, and is paid pursuant to a contract
1559	1559	17 or agreement that reflects arm's-length terms;
1560	1560	18 or
1561	1561	19 (iii) any item of intangible expense or cost
1562	1562	20 paid, accrued, or incurred, directly or
1563	1563	21 indirectly, from a transaction with a person if
1564	1564	22 the taxpayer establishes by clear and convincing
1565	1565	23 evidence, that the adjustments are unreasonable;
1566	1566	24 or if the taxpayer and the Director agree in
1567	1567	25 writing to the application or use of an
1568	1568	26 alternative method of apportionment under Section
1569	1569
1570	1570
1571	1571
1572	1572
1573	1573
1574	1574	HB1824 - 43 - LRB104 09229 HLH 19286 b
1575	1575
1576	1576
1577	1577	HB1824- 44 -LRB104 09229 HLH 19286 b HB1824 - 44 - LRB104 09229 HLH 19286 b
1578	1578	HB1824 - 44 - LRB104 09229 HLH 19286 b
1579	1579	1 304(f);
1580	1580	2 Nothing in this subsection shall preclude the
1581	1581	3 Director from making any other adjustment
1582	1582	4 otherwise allowed under Section 404 of this Act
1583	1583	5 for any tax year beginning after the effective
1584	1584	6 date of this amendment provided such adjustment is
1585	1585	7 made pursuant to regulation adopted by the
1586	1586	8 Department and such regulations provide methods
1587	1587	9 and standards by which the Department will utilize
1588	1588	10 its authority under Section 404 of this Act;
1589	1589	11 (E-14) For taxable years ending on or after
1590	1590	12 December 31, 2008, an amount equal to the amount of
1591	1591	13 insurance premium expenses and costs otherwise allowed
1592	1592	14 as a deduction in computing base income, and that were
1593	1593	15 paid, accrued, or incurred, directly or indirectly, to
1594	1594	16 a person who would be a member of the same unitary
1595	1595	17 business group but for the fact that the person is
1596	1596	18 prohibited under Section 1501(a)(27) from being
1597	1597	19 included in the unitary business group because he or
1598	1598	20 she is ordinarily required to apportion business
1599	1599	21 income under different subsections of Section 304. The
1600	1600	22 addition modification required by this subparagraph
1601	1601	23 shall be reduced to the extent that dividends were
1602	1602	24 included in base income of the unitary group for the
1603	1603	25 same taxable year and received by the taxpayer or by a
1604	1604	26 member of the taxpayer's unitary business group
1605	1605
1606	1606
1607	1607
1608	1608
1609	1609
1610	1610	HB1824 - 44 - LRB104 09229 HLH 19286 b
1611	1611
1612	1612
1613	1613	HB1824- 45 -LRB104 09229 HLH 19286 b HB1824 - 45 - LRB104 09229 HLH 19286 b
1614	1614	HB1824 - 45 - LRB104 09229 HLH 19286 b
1615	1615	1 (including amounts included in gross income under
1616	1616	2 Sections 951 through 964 of the Internal Revenue Code
1617	1617	3 and amounts included in gross income under Section 78
1618	1618	4 of the Internal Revenue Code) with respect to the
1619	1619	5 stock of the same person to whom the premiums and costs
1620	1620	6 were directly or indirectly paid, incurred, or
1621	1621	7 accrued. The preceding sentence does not apply to the
1622	1622	8 extent that the same dividends caused a reduction to
1623	1623	9 the addition modification required under Section
1624	1624	10 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1625	1625	11 Act;
1626	1626	12 (E-15) For taxable years beginning after December
1627	1627	13 31, 2008, any deduction for dividends paid by a
1628	1628	14 captive real estate investment trust that is allowed
1629	1629	15 to a real estate investment trust under Section
1630	1630	16 857(b)(2)(B) of the Internal Revenue Code for
1631	1631	17 dividends paid;
1632	1632	18 (E-16) An amount equal to the credit allowable to
1633	1633	19 the taxpayer under Section 218(a) of this Act,
1634	1634	20 determined without regard to Section 218(c) of this
1635	1635	21 Act;
1636	1636	22 (E-17) For taxable years ending on or after
1637	1637	23 December 31, 2017, an amount equal to the deduction
1638	1638	24 allowed under Section 199 of the Internal Revenue Code
1639	1639	25 for the taxable year;
1640	1640	26 (E-18) for taxable years beginning after December
1641	1641
1642	1642
1643	1643
1644	1644
1645	1645
1646	1646	HB1824 - 45 - LRB104 09229 HLH 19286 b
1647	1647
1648	1648
1649	1649	HB1824- 46 -LRB104 09229 HLH 19286 b HB1824 - 46 - LRB104 09229 HLH 19286 b
1650	1650	HB1824 - 46 - LRB104 09229 HLH 19286 b
1651	1651	1 31, 2018, an amount equal to the deduction allowed
1652	1652	2 under Section 250(a)(1)(A) of the Internal Revenue
1653	1653	3 Code for the taxable year;
1654	1654	4 (E-19) for taxable years ending on or after June
1655	1655	5 30, 2021, an amount equal to the deduction allowed
1656	1656	6 under Section 250(a)(1)(B)(i) of the Internal Revenue
1657	1657	7 Code for the taxable year;
1658	1658	8 (E-20) for taxable years ending on or after June
1659	1659	9 30, 2021, an amount equal to the deduction allowed
1660	1660	10 under Sections 243(e) and 245A(a) of the Internal
1661	1661	11 Revenue Code for the taxable year;
1662	1662	12 (E-21) the amount that is claimed as a federal
1663	1663	13 deduction when computing the taxpayer's federal
1664	1664	14 taxable income for the taxable year and that is
1665	1665	15 attributable to an endowment gift for which the
1666	1666	16 taxpayer receives a credit under the Illinois Gives
1667	1667	17 Tax Credit Act;
1668	1668	18 and by deducting from the total so obtained the sum of the
1669	1669	19 following amounts:
1670	1670	20 (F) An amount equal to the amount of any tax
1671	1671	21 imposed by this Act which was refunded to the taxpayer
1672	1672	22 and included in such total for the taxable year;
1673	1673	23 (G) An amount equal to any amount included in such
1674	1674	24 total under Section 78 of the Internal Revenue Code;
1675	1675	25 (H) In the case of a regulated investment company,
1676	1676	26 an amount equal to the amount of exempt interest
1677	1677
1678	1678
1679	1679
1680	1680
1681	1681
1682	1682	HB1824 - 46 - LRB104 09229 HLH 19286 b
1683	1683
1684	1684
1685	1685	HB1824- 47 -LRB104 09229 HLH 19286 b HB1824 - 47 - LRB104 09229 HLH 19286 b
1686	1686	HB1824 - 47 - LRB104 09229 HLH 19286 b
1687	1687	1 dividends as defined in subsection (b)(5) of Section
1688	1688	2 852 of the Internal Revenue Code, paid to shareholders
1689	1689	3 for the taxable year;
1690	1690	4 (I) With the exception of any amounts subtracted
1691	1691	5 under subparagraph (J), an amount equal to the sum of
1692	1692	6 all amounts disallowed as deductions by (i) Sections
1693	1693	7 171(a)(2) and 265(a)(2) and amounts disallowed as
1694	1694	8 interest expense by Section 291(a)(3) of the Internal
1695	1695	9 Revenue Code, and all amounts of expenses allocable to
1696	1696	10 interest and disallowed as deductions by Section
1697	1697	11 265(a)(1) of the Internal Revenue Code; and (ii) for
1698	1698	12 taxable years ending on or after August 13, 1999,
1699	1699	13 Sections 171(a)(2), 265, 280C, 291(a)(3), and
1700	1700	14 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
1701	1701	15 for tax years ending on or after December 31, 2011,
1702	1702	16 amounts disallowed as deductions by Section 45G(e)(3)
1703	1703	17 of the Internal Revenue Code and, for taxable years
1704	1704	18 ending on or after December 31, 2008, any amount
1705	1705	19 included in gross income under Section 87 of the
1706	1706	20 Internal Revenue Code and the policyholders' share of
1707	1707	21 tax-exempt interest of a life insurance company under
1708	1708	22 Section 807(a)(2)(B) of the Internal Revenue Code (in
1709	1709	23 the case of a life insurance company with gross income
1710	1710	24 from a decrease in reserves for the tax year) or
1711	1711	25 Section 807(b)(1)(B) of the Internal Revenue Code (in
1712	1712	26 the case of a life insurance company allowed a
1713	1713
1714	1714
1715	1715
1716	1716
1717	1717
1718	1718	HB1824 - 47 - LRB104 09229 HLH 19286 b
1719	1719
1720	1720
1721	1721	HB1824- 48 -LRB104 09229 HLH 19286 b HB1824 - 48 - LRB104 09229 HLH 19286 b
1722	1722	HB1824 - 48 - LRB104 09229 HLH 19286 b
1723	1723	1 deduction for an increase in reserves for the tax
1724	1724	2 year); the provisions of this subparagraph are exempt
1725	1725	3 from the provisions of Section 250;
1726	1726	4 (J) An amount equal to all amounts included in
1727	1727	5 such total which are exempt from taxation by this
1728	1728	6 State either by reason of its statutes or Constitution
1729	1729	7 or by reason of the Constitution, treaties or statutes
1730	1730	8 of the United States; provided that, in the case of any
1731	1731	9 statute of this State that exempts income derived from
1732	1732	10 bonds or other obligations from the tax imposed under
1733	1733	11 this Act, the amount exempted shall be the interest
1734	1734	12 net of bond premium amortization;
1735	1735	13 (K) An amount equal to those dividends included in
1736	1736	14 such total which were paid by a corporation which
1737	1737	15 conducts business operations in a River Edge
1738	1738	16 Redevelopment Zone or zones created under the River
1739	1739	17 Edge Redevelopment Zone Act and conducts substantially
1740	1740	18 all of its operations in a River Edge Redevelopment
1741	1741	19 Zone or zones. This subparagraph (K) is exempt from
1742	1742	20 the provisions of Section 250;
1743	1743	21 (L) An amount equal to those dividends included in
1744	1744	22 such total that were paid by a corporation that
1745	1745	23 conducts business operations in a federally designated
1746	1746	24 Foreign Trade Zone or Sub-Zone and that is designated
1747	1747	25 a High Impact Business located in Illinois; provided
1748	1748	26 that dividends eligible for the deduction provided in
1749	1749
1750	1750
1751	1751
1752	1752
1753	1753
1754	1754	HB1824 - 48 - LRB104 09229 HLH 19286 b
1755	1755
1756	1756
1757	1757	HB1824- 49 -LRB104 09229 HLH 19286 b HB1824 - 49 - LRB104 09229 HLH 19286 b
1758	1758	HB1824 - 49 - LRB104 09229 HLH 19286 b
1759	1759	1 subparagraph (K) of paragraph 2 of this subsection
1760	1760	2 shall not be eligible for the deduction provided under
1761	1761	3 this subparagraph (L);
1762	1762	4 (M) For any taxpayer that is a financial
1763	1763	5 organization within the meaning of Section 304(c) of
1764	1764	6 this Act, an amount included in such total as interest
1765	1765	7 income from a loan or loans made by such taxpayer to a
1766	1766	8 borrower, to the extent that such a loan is secured by
1767	1767	9 property which is eligible for the River Edge
1768	1768	10 Redevelopment Zone Investment Credit. To determine the
1769	1769	11 portion of a loan or loans that is secured by property
1770	1770	12 eligible for a Section 201(f) investment credit to the
1771	1771	13 borrower, the entire principal amount of the loan or
1772	1772	14 loans between the taxpayer and the borrower should be
1773	1773	15 divided into the basis of the Section 201(f)
1774	1774	16 investment credit property which secures the loan or
1775	1775	17 loans, using for this purpose the original basis of
1776	1776	18 such property on the date that it was placed in service
1777	1777	19 in the River Edge Redevelopment Zone. The subtraction
1778	1778	20 modification available to the taxpayer in any year
1779	1779	21 under this subsection shall be that portion of the
1780	1780	22 total interest paid by the borrower with respect to
1781	1781	23 such loan attributable to the eligible property as
1782	1782	24 calculated under the previous sentence. This
1783	1783	25 subparagraph (M) is exempt from the provisions of
1784	1784	26 Section 250;
1785	1785
1786	1786
1787	1787
1788	1788
1789	1789
1790	1790	HB1824 - 49 - LRB104 09229 HLH 19286 b
1791	1791
1792	1792
1793	1793	HB1824- 50 -LRB104 09229 HLH 19286 b HB1824 - 50 - LRB104 09229 HLH 19286 b
1794	1794	HB1824 - 50 - LRB104 09229 HLH 19286 b
1795	1795	1 (M-1) For any taxpayer that is a financial
1796	1796	2 organization within the meaning of Section 304(c) of
1797	1797	3 this Act, an amount included in such total as interest
1798	1798	4 income from a loan or loans made by such taxpayer to a
1799	1799	5 borrower, to the extent that such a loan is secured by
1800	1800	6 property which is eligible for the High Impact
1801	1801	7 Business Investment Credit. To determine the portion
1802	1802	8 of a loan or loans that is secured by property eligible
1803	1803	9 for a Section 201(h) investment credit to the
1804	1804	10 borrower, the entire principal amount of the loan or
1805	1805	11 loans between the taxpayer and the borrower should be
1806	1806	12 divided into the basis of the Section 201(h)
1807	1807	13 investment credit property which secures the loan or
1808	1808	14 loans, using for this purpose the original basis of
1809	1809	15 such property on the date that it was placed in service
1810	1810	16 in a federally designated Foreign Trade Zone or
1811	1811	17 Sub-Zone located in Illinois. No taxpayer that is
1812	1812	18 eligible for the deduction provided in subparagraph
1813	1813	19 (M) of paragraph (2) of this subsection shall be
1814	1814	20 eligible for the deduction provided under this
1815	1815	21 subparagraph (M-1). The subtraction modification
1816	1816	22 available to taxpayers in any year under this
1817	1817	23 subsection shall be that portion of the total interest
1818	1818	24 paid by the borrower with respect to such loan
1819	1819	25 attributable to the eligible property as calculated
1820	1820	26 under the previous sentence;
1821	1821
1822	1822
1823	1823
1824	1824
1825	1825
1826	1826	HB1824 - 50 - LRB104 09229 HLH 19286 b
1827	1827
1828	1828
1829	1829	HB1824- 51 -LRB104 09229 HLH 19286 b HB1824 - 51 - LRB104 09229 HLH 19286 b
1830	1830	HB1824 - 51 - LRB104 09229 HLH 19286 b
1831	1831	1 (N) Two times any contribution made during the
1832	1832	2 taxable year to a designated zone organization to the
1833	1833	3 extent that the contribution (i) qualifies as a
1834	1834	4 charitable contribution under subsection (c) of
1835	1835	5 Section 170 of the Internal Revenue Code and (ii)
1836	1836	6 must, by its terms, be used for a project approved by
1837	1837	7 the Department of Commerce and Economic Opportunity
1838	1838	8 under Section 11 of the Illinois Enterprise Zone Act
1839	1839	9 or under Section 10-10 of the River Edge Redevelopment
1840	1840	10 Zone Act. This subparagraph (N) is exempt from the
1841	1841	11 provisions of Section 250;
1842	1842	12 (O) An amount equal to: (i) 85% for taxable years
1843	1843	13 ending on or before December 31, 1992, or, a
1844	1844	14 percentage equal to the percentage allowable under
1845	1845	15 Section 243(a)(1) of the Internal Revenue Code of 1986
1846	1846	16 for taxable years ending after December 31, 1992, of
1847	1847	17 the amount by which dividends included in taxable
1848	1848	18 income and received from a corporation that is not
1849	1849	19 created or organized under the laws of the United
1850	1850	20 States or any state or political subdivision thereof,
1851	1851	21 including, for taxable years ending on or after
1852	1852	22 December 31, 1988, dividends received or deemed
1853	1853	23 received or paid or deemed paid under Sections 951
1854	1854	24 through 965 of the Internal Revenue Code, exceed the
1855	1855	25 amount of the modification provided under subparagraph
1856	1856	26 (G) of paragraph (2) of this subsection (b) which is
1857	1857
1858	1858
1859	1859
1860	1860
1861	1861
1862	1862	HB1824 - 51 - LRB104 09229 HLH 19286 b
1863	1863
1864	1864
1865	1865	HB1824- 52 -LRB104 09229 HLH 19286 b HB1824 - 52 - LRB104 09229 HLH 19286 b
1866	1866	HB1824 - 52 - LRB104 09229 HLH 19286 b
1867	1867	1 related to such dividends, and including, for taxable
1868	1868	2 years ending on or after December 31, 2008, dividends
1869	1869	3 received from a captive real estate investment trust;
1870	1870	4 plus (ii) 100% of the amount by which dividends,
1871	1871	5 included in taxable income and received, including,
1872	1872	6 for taxable years ending on or after December 31,
1873	1873	7 1988, dividends received or deemed received or paid or
1874	1874	8 deemed paid under Sections 951 through 964 of the
1875	1875	9 Internal Revenue Code and including, for taxable years
1876	1876	10 ending on or after December 31, 2008, dividends
1877	1877	11 received from a captive real estate investment trust,
1878	1878	12 from any such corporation specified in clause (i) that
1879	1879	13 would but for the provisions of Section 1504(b)(3) of
1880	1880	14 the Internal Revenue Code be treated as a member of the
1881	1881	15 affiliated group which includes the dividend
1882	1882	16 recipient, exceed the amount of the modification
1883	1883	17 provided under subparagraph (G) of paragraph (2) of
1884	1884	18 this subsection (b) which is related to such
1885	1885	19 dividends. For taxable years ending on or after June
1886	1886	20 30, 2021, (i) for purposes of this subparagraph, the
1887	1887	21 term "dividend" does not include any amount treated as
1888	1888	22 a dividend under Section 1248 of the Internal Revenue
1889	1889	23 Code, and (ii) this subparagraph shall not apply to
1890	1890	24 dividends for which a deduction is allowed under
1891	1891	25 Section 245(a) of the Internal Revenue Code. This
1892	1892	26 subparagraph (O) is exempt from the provisions of
1893	1893
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898	HB1824 - 52 - LRB104 09229 HLH 19286 b
1899	1899
1900	1900
1901	1901	HB1824- 53 -LRB104 09229 HLH 19286 b HB1824 - 53 - LRB104 09229 HLH 19286 b
1902	1902	HB1824 - 53 - LRB104 09229 HLH 19286 b
1903	1903	1 Section 250 of this Act;
1904	1904	2 (P) An amount equal to any contribution made to a
1905	1905	3 job training project established pursuant to the Tax
1906	1906	4 Increment Allocation Redevelopment Act;
1907	1907	5 (Q) An amount equal to the amount of the deduction
1908	1908	6 used to compute the federal income tax credit for
1909	1909	7 restoration of substantial amounts held under claim of
1910	1910	8 right for the taxable year pursuant to Section 1341 of
1911	1911	9 the Internal Revenue Code;
1912	1912	10 (R) On and after July 20, 1999, in the case of an
1913	1913	11 attorney-in-fact with respect to whom an interinsurer
1914	1914	12 or a reciprocal insurer has made the election under
1915	1915	13 Section 835 of the Internal Revenue Code, 26 U.S.C.
1916	1916	14 835, an amount equal to the excess, if any, of the
1917	1917	15 amounts paid or incurred by that interinsurer or
1918	1918	16 reciprocal insurer in the taxable year to the
1919	1919	17 attorney-in-fact over the deduction allowed to that
1920	1920	18 interinsurer or reciprocal insurer with respect to the
1921	1921	19 attorney-in-fact under Section 835(b) of the Internal
1922	1922	20 Revenue Code for the taxable year; the provisions of
1923	1923	21 this subparagraph are exempt from the provisions of
1924	1924	22 Section 250;
1925	1925	23 (S) For taxable years ending on or after December
1926	1926	24 31, 1997, in the case of a Subchapter S corporation, an
1927	1927	25 amount equal to all amounts of income allocable to a
1928	1928	26 shareholder subject to the Personal Property Tax
1929	1929
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934	HB1824 - 53 - LRB104 09229 HLH 19286 b
1935	1935
1936	1936
1937	1937	HB1824- 54 -LRB104 09229 HLH 19286 b HB1824 - 54 - LRB104 09229 HLH 19286 b
1938	1938	HB1824 - 54 - LRB104 09229 HLH 19286 b
1939	1939	1 Replacement Income Tax imposed by subsections (c) and
1940	1940	2 (d) of Section 201 of this Act, including amounts
1941	1941	3 allocable to organizations exempt from federal income
1942	1942	4 tax by reason of Section 501(a) of the Internal
1943	1943	5 Revenue Code. This subparagraph (S) is exempt from the
1944	1944	6 provisions of Section 250;
1945	1945	7 (T) For taxable years 2001 and thereafter, for the
1946	1946	8 taxable year in which the bonus depreciation deduction
1947	1947	9 is taken on the taxpayer's federal income tax return
1948	1948	10 under subsection (k) of Section 168 of the Internal
1949	1949	11 Revenue Code and for each applicable taxable year
1950	1950	12 thereafter, an amount equal to "x", where:
1951	1951	13 (1) "y" equals the amount of the depreciation
1952	1952	14 deduction taken for the taxable year on the
1953	1953	15 taxpayer's federal income tax return on property
1954	1954	16 for which the bonus depreciation deduction was
1955	1955	17 taken in any year under subsection (k) of Section
1956	1956	18 168 of the Internal Revenue Code, but not
1957	1957	19 including the bonus depreciation deduction;
1958	1958	20 (2) for taxable years ending on or before
1959	1959	21 December 31, 2005, "x" equals "y" multiplied by 30
1960	1960	22 and then divided by 70 (or "y" multiplied by
1961	1961	23 0.429); and
1962	1962	24 (3) for taxable years ending after December
1963	1963	25 31, 2005:
1964	1964	26 (i) for property on which a bonus
1965	1965
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970	HB1824 - 54 - LRB104 09229 HLH 19286 b
1971	1971
1972	1972
1973	1973	HB1824- 55 -LRB104 09229 HLH 19286 b HB1824 - 55 - LRB104 09229 HLH 19286 b
1974	1974	HB1824 - 55 - LRB104 09229 HLH 19286 b
1975	1975	1 depreciation deduction of 30% of the adjusted
1976	1976	2 basis was taken, "x" equals "y" multiplied by
1977	1977	3 30 and then divided by 70 (or "y" multiplied
1978	1978	4 by 0.429);
1979	1979	5 (ii) for property on which a bonus
1980	1980	6 depreciation deduction of 50% of the adjusted
1981	1981	7 basis was taken, "x" equals "y" multiplied by
1982	1982	8 1.0;
1983	1983	9 (iii) for property on which a bonus
1984	1984	10 depreciation deduction of 100% of the adjusted
1985	1985	11 basis was taken in a taxable year ending on or
1986	1986	12 after December 31, 2021, "x" equals the
1987	1987	13 depreciation deduction that would be allowed
1988	1988	14 on that property if the taxpayer had made the
1989	1989	15 election under Section 168(k)(7) of the
1990	1990	16 Internal Revenue Code to not claim bonus
1991	1991	17 depreciation on that property; and
1992	1992	18 (iv) for property on which a bonus
1993	1993	19 depreciation deduction of a percentage other
1994	1994	20 than 30%, 50% or 100% of the adjusted basis
1995	1995	21 was taken in a taxable year ending on or after
1996	1996	22 December 31, 2021, "x" equals "y" multiplied
1997	1997	23 by 100 times the percentage bonus depreciation
1998	1998	24 on the property (that is, 100(bonus%)) and
1999	1999	25 then divided by 100 times 1 minus the
2000	2000	26 percentage bonus depreciation on the property
2001	2001
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006	HB1824 - 55 - LRB104 09229 HLH 19286 b
2007	2007
2008	2008
2009	2009	HB1824- 56 -LRB104 09229 HLH 19286 b HB1824 - 56 - LRB104 09229 HLH 19286 b
2010	2010	HB1824 - 56 - LRB104 09229 HLH 19286 b
2011	2011	1 (that is, 100(1-bonus%)).
2012	2012	2 The aggregate amount deducted under this
2013	2013	3 subparagraph in all taxable years for any one piece of
2014	2014	4 property may not exceed the amount of the bonus
2015	2015	5 depreciation deduction taken on that property on the
2016	2016	6 taxpayer's federal income tax return under subsection
2017	2017	7 (k) of Section 168 of the Internal Revenue Code. This
2018	2018	8 subparagraph (T) is exempt from the provisions of
2019	2019	9 Section 250;
2020	2020	10 (U) If the taxpayer sells, transfers, abandons, or
2021	2021	11 otherwise disposes of property for which the taxpayer
2022	2022	12 was required in any taxable year to make an addition
2023	2023	13 modification under subparagraph (E-10), then an amount
2024	2024	14 equal to that addition modification.
2025	2025	15 If the taxpayer continues to own property through
2026	2026	16 the last day of the last tax year for which a
2027	2027	17 subtraction is allowed with respect to that property
2028	2028	18 under subparagraph (T) and for which the taxpayer was
2029	2029	19 required in any taxable year to make an addition
2030	2030	20 modification under subparagraph (E-10), then an amount
2031	2031	21 equal to that addition modification.
2032	2032	22 The taxpayer is allowed to take the deduction
2033	2033	23 under this subparagraph only once with respect to any
2034	2034	24 one piece of property.
2035	2035	25 This subparagraph (U) is exempt from the
2036	2036	26 provisions of Section 250;
2037	2037
2038	2038
2039	2039
2040	2040
2041	2041
2042	2042	HB1824 - 56 - LRB104 09229 HLH 19286 b
2043	2043
2044	2044
2045	2045	HB1824- 57 -LRB104 09229 HLH 19286 b HB1824 - 57 - LRB104 09229 HLH 19286 b
2046	2046	HB1824 - 57 - LRB104 09229 HLH 19286 b
2047	2047	1 (V) The amount of: (i) any interest income (net of
2048	2048	2 the deductions allocable thereto) taken into account
2049	2049	3 for the taxable year with respect to a transaction
2050	2050	4 with a taxpayer that is required to make an addition
2051	2051	5 modification with respect to such transaction under
2052	2052	6 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2053	2053	7 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2054	2054	8 the amount of such addition modification, (ii) any
2055	2055	9 income from intangible property (net of the deductions
2056	2056	10 allocable thereto) taken into account for the taxable
2057	2057	11 year with respect to a transaction with a taxpayer
2058	2058	12 that is required to make an addition modification with
2059	2059	13 respect to such transaction under Section
2060	2060	14 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2061	2061	15 203(d)(2)(D-8), but not to exceed the amount of such
2062	2062	16 addition modification, and (iii) any insurance premium
2063	2063	17 income (net of deductions allocable thereto) taken
2064	2064	18 into account for the taxable year with respect to a
2065	2065	19 transaction with a taxpayer that is required to make
2066	2066	20 an addition modification with respect to such
2067	2067	21 transaction under Section 203(a)(2)(D-19), Section
2068	2068	22 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
2069	2069	23 203(d)(2)(D-9), but not to exceed the amount of that
2070	2070	24 addition modification. This subparagraph (V) is exempt
2071	2071	25 from the provisions of Section 250;
2072	2072	26 (W) An amount equal to the interest income taken
2073	2073
2074	2074
2075	2075
2076	2076
2077	2077
2078	2078	HB1824 - 57 - LRB104 09229 HLH 19286 b
2079	2079
2080	2080
2081	2081	HB1824- 58 -LRB104 09229 HLH 19286 b HB1824 - 58 - LRB104 09229 HLH 19286 b
2082	2082	HB1824 - 58 - LRB104 09229 HLH 19286 b
2083	2083	1 into account for the taxable year (net of the
2084	2084	2 deductions allocable thereto) with respect to
2085	2085	3 transactions with (i) a foreign person who would be a
2086	2086	4 member of the taxpayer's unitary business group but
2087	2087	5 for the fact that the foreign person's business
2088	2088	6 activity outside the United States is 80% or more of
2089	2089	7 that person's total business activity and (ii) for
2090	2090	8 taxable years ending on or after December 31, 2008, to
2091	2091	9 a person who would be a member of the same unitary
2092	2092	10 business group but for the fact that the person is
2093	2093	11 prohibited under Section 1501(a)(27) from being
2094	2094	12 included in the unitary business group because he or
2095	2095	13 she is ordinarily required to apportion business
2096	2096	14 income under different subsections of Section 304, but
2097	2097	15 not to exceed the addition modification required to be
2098	2098	16 made for the same taxable year under Section
2099	2099	17 203(b)(2)(E-12) for interest paid, accrued, or
2100	2100	18 incurred, directly or indirectly, to the same person.
2101	2101	19 This subparagraph (W) is exempt from the provisions of
2102	2102	20 Section 250;
2103	2103	21 (X) An amount equal to the income from intangible
2104	2104	22 property taken into account for the taxable year (net
2105	2105	23 of the deductions allocable thereto) with respect to
2106	2106	24 transactions with (i) a foreign person who would be a
2107	2107	25 member of the taxpayer's unitary business group but
2108	2108	26 for the fact that the foreign person's business
2109	2109
2110	2110
2111	2111
2112	2112
2113	2113
2114	2114	HB1824 - 58 - LRB104 09229 HLH 19286 b
2115	2115
2116	2116
2117	2117	HB1824- 59 -LRB104 09229 HLH 19286 b HB1824 - 59 - LRB104 09229 HLH 19286 b
2118	2118	HB1824 - 59 - LRB104 09229 HLH 19286 b
2119	2119	1 activity outside the United States is 80% or more of
2120	2120	2 that person's total business activity and (ii) for
2121	2121	3 taxable years ending on or after December 31, 2008, to
2122	2122	4 a person who would be a member of the same unitary
2123	2123	5 business group but for the fact that the person is
2124	2124	6 prohibited under Section 1501(a)(27) from being
2125	2125	7 included in the unitary business group because he or
2126	2126	8 she is ordinarily required to apportion business
2127	2127	9 income under different subsections of Section 304, but
2128	2128	10 not to exceed the addition modification required to be
2129	2129	11 made for the same taxable year under Section
2130	2130	12 203(b)(2)(E-13) for intangible expenses and costs
2131	2131	13 paid, accrued, or incurred, directly or indirectly, to
2132	2132	14 the same foreign person. This subparagraph (X) is
2133	2133	15 exempt from the provisions of Section 250;
2134	2134	16 (Y) For taxable years ending on or after December
2135	2135	17 31, 2011, in the case of a taxpayer who was required to
2136	2136	18 add back any insurance premiums under Section
2137	2137	19 203(b)(2)(E-14), such taxpayer may elect to subtract
2138	2138	20 that part of a reimbursement received from the
2139	2139	21 insurance company equal to the amount of the expense
2140	2140	22 or loss (including expenses incurred by the insurance
2141	2141	23 company) that would have been taken into account as a
2142	2142	24 deduction for federal income tax purposes if the
2143	2143	25 expense or loss had been uninsured. If a taxpayer
2144	2144	26 makes the election provided for by this subparagraph
2145	2145
2146	2146
2147	2147
2148	2148
2149	2149
2150	2150	HB1824 - 59 - LRB104 09229 HLH 19286 b
2151	2151
2152	2152
2153	2153	HB1824- 60 -LRB104 09229 HLH 19286 b HB1824 - 60 - LRB104 09229 HLH 19286 b
2154	2154	HB1824 - 60 - LRB104 09229 HLH 19286 b
2155	2155	1 (Y), the insurer to which the premiums were paid must
2156	2156	2 add back to income the amount subtracted by the
2157	2157	3 taxpayer pursuant to this subparagraph (Y). This
2158	2158	4 subparagraph (Y) is exempt from the provisions of
2159	2159	5 Section 250;
2160	2160	6 (Z) The difference between the nondeductible
2161	2161	7 controlled foreign corporation dividends under Section
2162	2162	8 965(e)(3) of the Internal Revenue Code over the
2163	2163	9 taxable income of the taxpayer, computed without
2164	2164	10 regard to Section 965(e)(2)(A) of the Internal Revenue
2165	2165	11 Code, and without regard to any net operating loss
2166	2166	12 deduction. This subparagraph (Z) is exempt from the
2167	2167	13 provisions of Section 250; and
2168	2168	14 (AA) For taxable years beginning on or after
2169	2169	15 January 1, 2023, for any cannabis establishment
2170	2170	16 operating in this State and licensed under the
2171	2171	17 Cannabis Regulation and Tax Act or any cannabis
2172	2172	18 cultivation center or medical cannabis dispensing
2173	2173	19 organization operating in this State and licensed
2174	2174	20 under the Compassionate Use of Medical Cannabis
2175	2175	21 Program Act, an amount equal to the deductions that
2176	2176	22 were disallowed under Section 280E of the Internal
2177	2177	23 Revenue Code for the taxable year and that would not be
2178	2178	24 added back under this subsection. The provisions of
2179	2179	25 this subparagraph (AA) are exempt from the provisions
2180	2180	26 of Section 250; and .
2181	2181
2182	2182
2183	2183
2184	2184
2185	2185
2186	2186	HB1824 - 60 - LRB104 09229 HLH 19286 b
2187	2187
2188	2188
2189	2189	HB1824- 61 -LRB104 09229 HLH 19286 b HB1824 - 61 - LRB104 09229 HLH 19286 b
2190	2190	HB1824 - 61 - LRB104 09229 HLH 19286 b
2191	2191	1 (BB) For taxable years ending on or after December
2192	2192	2 31, 2025, any contribution to the capital of the
2193	2193	3 taxpayer from the Department of Commerce and Economic
2194	2194	4 Opportunity or any other agency or political
2195	2195	5 subdivision of the State that is made pursuant to a
2196	2196	6 master development plan, as defined in the Master
2197	2197	7 Development Plan Recognition Act, and that is included
2198	2198	8 in the taxpayer's federal taxable income for the
2199	2199	9 taxable year under Section 118 of the Internal Revenue
2200	2200	10 Code; this subparagraph (BB) is exempt from the
2201	2201	11 provisions of Section 250.
2202	2202	12 (3) Special rule. For purposes of paragraph (2)(A),
2203	2203	13 "gross income" in the case of a life insurance company,
2204	2204	14 for tax years ending on and after December 31, 1994, and
2205	2205	15 prior to December 31, 2011, shall mean the gross
2206	2206	16 investment income for the taxable year and, for tax years
2207	2207	17 ending on or after December 31, 2011, shall mean all
2208	2208	18 amounts included in life insurance gross income under
2209	2209	19 Section 803(a)(3) of the Internal Revenue Code.
2210	2210	20 (c) Trusts and estates.
2211	2211	21 (1) In general. In the case of a trust or estate, base
2212	2212	22 income means an amount equal to the taxpayer's taxable
2213	2213	23 income for the taxable year as modified by paragraph (2).
2214	2214	24 (2) Modifications. Subject to the provisions of
2215	2215	25 paragraph (3), the taxable income referred to in paragraph
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220
2221	2221	HB1824 - 61 - LRB104 09229 HLH 19286 b
2222	2222
2223	2223
2224	2224	HB1824- 62 -LRB104 09229 HLH 19286 b HB1824 - 62 - LRB104 09229 HLH 19286 b
2225	2225	HB1824 - 62 - LRB104 09229 HLH 19286 b
2226	2226	1 (1) shall be modified by adding thereto the sum of the
2227	2227	2 following amounts:
2228	2228	3 (A) An amount equal to all amounts paid or accrued
2229	2229	4 to the taxpayer as interest or dividends during the
2230	2230	5 taxable year to the extent excluded from gross income
2231	2231	6 in the computation of taxable income;
2232	2232	7 (B) In the case of (i) an estate, $600; (ii) a
2233	2233	8 trust which, under its governing instrument, is
2234	2234	9 required to distribute all of its income currently,
2235	2235	10 $300; and (iii) any other trust, $100, but in each such
2236	2236	11 case, only to the extent such amount was deducted in
2237	2237	12 the computation of taxable income;
2238	2238	13 (C) An amount equal to the amount of tax imposed by
2239	2239	14 this Act to the extent deducted from gross income in
2240	2240	15 the computation of taxable income for the taxable
2241	2241	16 year;
2242	2242	17 (D) The amount of any net operating loss deduction
2243	2243	18 taken in arriving at taxable income, other than a net
2244	2244	19 operating loss carried forward from a taxable year
2245	2245	20 ending prior to December 31, 1986;
2246	2246	21 (E) For taxable years in which a net operating
2247	2247	22 loss carryback or carryforward from a taxable year
2248	2248	23 ending prior to December 31, 1986 is an element of
2249	2249	24 taxable income under paragraph (1) of subsection (e)
2250	2250	25 or subparagraph (E) of paragraph (2) of subsection
2251	2251	26 (e), the amount by which addition modifications other
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256
2257	2257	HB1824 - 62 - LRB104 09229 HLH 19286 b
2258	2258
2259	2259
2260	2260	HB1824- 63 -LRB104 09229 HLH 19286 b HB1824 - 63 - LRB104 09229 HLH 19286 b
2261	2261	HB1824 - 63 - LRB104 09229 HLH 19286 b
2262	2262	1 than those provided by this subparagraph (E) exceeded
2263	2263	2 subtraction modifications in such taxable year, with
2264	2264	3 the following limitations applied in the order that
2265	2265	4 they are listed:
2266	2266	5 (i) the addition modification relating to the
2267	2267	6 net operating loss carried back or forward to the
2268	2268	7 taxable year from any taxable year ending prior to
2269	2269	8 December 31, 1986 shall be reduced by the amount
2270	2270	9 of addition modification under this subparagraph
2271	2271	10 (E) which related to that net operating loss and
2272	2272	11 which was taken into account in calculating the
2273	2273	12 base income of an earlier taxable year, and
2274	2274	13 (ii) the addition modification relating to the
2275	2275	14 net operating loss carried back or forward to the
2276	2276	15 taxable year from any taxable year ending prior to
2277	2277	16 December 31, 1986 shall not exceed the amount of
2278	2278	17 such carryback or carryforward;
2279	2279	18 For taxable years in which there is a net
2280	2280	19 operating loss carryback or carryforward from more
2281	2281	20 than one other taxable year ending prior to December
2282	2282	21 31, 1986, the addition modification provided in this
2283	2283	22 subparagraph (E) shall be the sum of the amounts
2284	2284	23 computed independently under the preceding provisions
2285	2285	24 of this subparagraph (E) for each such taxable year;
2286	2286	25 (F) For taxable years ending on or after January
2287	2287	26 1, 1989, an amount equal to the tax deducted pursuant
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292
2293	2293	HB1824 - 63 - LRB104 09229 HLH 19286 b
2294	2294
2295	2295
2296	2296	HB1824- 64 -LRB104 09229 HLH 19286 b HB1824 - 64 - LRB104 09229 HLH 19286 b
2297	2297	HB1824 - 64 - LRB104 09229 HLH 19286 b
2298	2298	1 to Section 164 of the Internal Revenue Code if the
2299	2299	2 trust or estate is claiming the same tax for purposes
2300	2300	3 of the Illinois foreign tax credit under Section 601
2301	2301	4 of this Act;
2302	2302	5 (G) An amount equal to the amount of the capital
2303	2303	6 gain deduction allowable under the Internal Revenue
2304	2304	7 Code, to the extent deducted from gross income in the
2305	2305	8 computation of taxable income;
2306	2306	9 (G-5) For taxable years ending after December 31,
2307	2307	10 1997, an amount equal to any eligible remediation
2308	2308	11 costs that the trust or estate deducted in computing
2309	2309	12 adjusted gross income and for which the trust or
2310	2310	13 estate claims a credit under subsection (l) of Section
2311	2311	14 201;
2312	2312	15 (G-10) For taxable years 2001 and thereafter, an
2313	2313	16 amount equal to the bonus depreciation deduction taken
2314	2314	17 on the taxpayer's federal income tax return for the
2315	2315	18 taxable year under subsection (k) of Section 168 of
2316	2316	19 the Internal Revenue Code; and
2317	2317	20 (G-11) If the taxpayer sells, transfers, abandons,
2318	2318	21 or otherwise disposes of property for which the
2319	2319	22 taxpayer was required in any taxable year to make an
2320	2320	23 addition modification under subparagraph (G-10), then
2321	2321	24 an amount equal to the aggregate amount of the
2322	2322	25 deductions taken in all taxable years under
2323	2323	26 subparagraph (R) with respect to that property.
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328
2329	2329	HB1824 - 64 - LRB104 09229 HLH 19286 b
2330	2330
2331	2331
2332	2332	HB1824- 65 -LRB104 09229 HLH 19286 b HB1824 - 65 - LRB104 09229 HLH 19286 b
2333	2333	HB1824 - 65 - LRB104 09229 HLH 19286 b
2334	2334	1 If the taxpayer continues to own property through
2335	2335	2 the last day of the last tax year for which a
2336	2336	3 subtraction is allowed with respect to that property
2337	2337	4 under subparagraph (R) and for which the taxpayer was
2338	2338	5 allowed in any taxable year to make a subtraction
2339	2339	6 modification under subparagraph (R), then an amount
2340	2340	7 equal to that subtraction modification.
2341	2341	8 The taxpayer is required to make the addition
2342	2342	9 modification under this subparagraph only once with
2343	2343	10 respect to any one piece of property;
2344	2344	11 (G-12) An amount equal to the amount otherwise
2345	2345	12 allowed as a deduction in computing base income for
2346	2346	13 interest paid, accrued, or incurred, directly or
2347	2347	14 indirectly, (i) for taxable years ending on or after
2348	2348	15 December 31, 2004, to a foreign person who would be a
2349	2349	16 member of the same unitary business group but for the
2350	2350	17 fact that the foreign person's business activity
2351	2351	18 outside the United States is 80% or more of the foreign
2352	2352	19 person's total business activity and (ii) for taxable
2353	2353	20 years ending on or after December 31, 2008, to a person
2354	2354	21 who would be a member of the same unitary business
2355	2355	22 group but for the fact that the person is prohibited
2356	2356	23 under Section 1501(a)(27) from being included in the
2357	2357	24 unitary business group because he or she is ordinarily
2358	2358	25 required to apportion business income under different
2359	2359	26 subsections of Section 304. The addition modification
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364
2365	2365	HB1824 - 65 - LRB104 09229 HLH 19286 b
2366	2366
2367	2367
2368	2368	HB1824- 66 -LRB104 09229 HLH 19286 b HB1824 - 66 - LRB104 09229 HLH 19286 b
2369	2369	HB1824 - 66 - LRB104 09229 HLH 19286 b
2370	2370	1 required by this subparagraph shall be reduced to the
2371	2371	2 extent that dividends were included in base income of
2372	2372	3 the unitary group for the same taxable year and
2373	2373	4 received by the taxpayer or by a member of the
2374	2374	5 taxpayer's unitary business group (including amounts
2375	2375	6 included in gross income pursuant to Sections 951
2376	2376	7 through 964 of the Internal Revenue Code and amounts
2377	2377	8 included in gross income under Section 78 of the
2378	2378	9 Internal Revenue Code) with respect to the stock of
2379	2379	10 the same person to whom the interest was paid,
2380	2380	11 accrued, or incurred.
2381	2381	12 This paragraph shall not apply to the following:
2382	2382	13 (i) an item of interest paid, accrued, or
2383	2383	14 incurred, directly or indirectly, to a person who
2384	2384	15 is subject in a foreign country or state, other
2385	2385	16 than a state which requires mandatory unitary
2386	2386	17 reporting, to a tax on or measured by net income
2387	2387	18 with respect to such interest; or
2388	2388	19 (ii) an item of interest paid, accrued, or
2389	2389	20 incurred, directly or indirectly, to a person if
2390	2390	21 the taxpayer can establish, based on a
2391	2391	22 preponderance of the evidence, both of the
2392	2392	23 following:
2393	2393	24 (a) the person, during the same taxable
2394	2394	25 year, paid, accrued, or incurred, the interest
2395	2395	26 to a person that is not a related member, and
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400
2401	2401	HB1824 - 66 - LRB104 09229 HLH 19286 b
2402	2402
2403	2403
2404	2404	HB1824- 67 -LRB104 09229 HLH 19286 b HB1824 - 67 - LRB104 09229 HLH 19286 b
2405	2405	HB1824 - 67 - LRB104 09229 HLH 19286 b
2406	2406	1 (b) the transaction giving rise to the
2407	2407	2 interest expense between the taxpayer and the
2408	2408	3 person did not have as a principal purpose the
2409	2409	4 avoidance of Illinois income tax, and is paid
2410	2410	5 pursuant to a contract or agreement that
2411	2411	6 reflects an arm's-length interest rate and
2412	2412	7 terms; or
2413	2413	8 (iii) the taxpayer can establish, based on
2414	2414	9 clear and convincing evidence, that the interest
2415	2415	10 paid, accrued, or incurred relates to a contract
2416	2416	11 or agreement entered into at arm's-length rates
2417	2417	12 and terms and the principal purpose for the
2418	2418	13 payment is not federal or Illinois tax avoidance;
2419	2419	14 or
2420	2420	15 (iv) an item of interest paid, accrued, or
2421	2421	16 incurred, directly or indirectly, to a person if
2422	2422	17 the taxpayer establishes by clear and convincing
2423	2423	18 evidence that the adjustments are unreasonable; or
2424	2424	19 if the taxpayer and the Director agree in writing
2425	2425	20 to the application or use of an alternative method
2426	2426	21 of apportionment under Section 304(f).
2427	2427	22 Nothing in this subsection shall preclude the
2428	2428	23 Director from making any other adjustment
2429	2429	24 otherwise allowed under Section 404 of this Act
2430	2430	25 for any tax year beginning after the effective
2431	2431	26 date of this amendment provided such adjustment is
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436
2437	2437	HB1824 - 67 - LRB104 09229 HLH 19286 b
2438	2438
2439	2439
2440	2440	HB1824- 68 -LRB104 09229 HLH 19286 b HB1824 - 68 - LRB104 09229 HLH 19286 b
2441	2441	HB1824 - 68 - LRB104 09229 HLH 19286 b
2442	2442	1 made pursuant to regulation adopted by the
2443	2443	2 Department and such regulations provide methods
2444	2444	3 and standards by which the Department will utilize
2445	2445	4 its authority under Section 404 of this Act;
2446	2446	5 (G-13) An amount equal to the amount of intangible
2447	2447	6 expenses and costs otherwise allowed as a deduction in
2448	2448	7 computing base income, and that were paid, accrued, or
2449	2449	8 incurred, directly or indirectly, (i) for taxable
2450	2450	9 years ending on or after December 31, 2004, to a
2451	2451	10 foreign person who would be a member of the same
2452	2452	11 unitary business group but for the fact that the
2453	2453	12 foreign person's business activity outside the United
2454	2454	13 States is 80% or more of that person's total business
2455	2455	14 activity and (ii) for taxable years ending on or after
2456	2456	15 December 31, 2008, to a person who would be a member of
2457	2457	16 the same unitary business group but for the fact that
2458	2458	17 the person is prohibited under Section 1501(a)(27)
2459	2459	18 from being included in the unitary business group
2460	2460	19 because he or she is ordinarily required to apportion
2461	2461	20 business income under different subsections of Section
2462	2462	21 304. The addition modification required by this
2463	2463	22 subparagraph shall be reduced to the extent that
2464	2464	23 dividends were included in base income of the unitary
2465	2465	24 group for the same taxable year and received by the
2466	2466	25 taxpayer or by a member of the taxpayer's unitary
2467	2467	26 business group (including amounts included in gross
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472
2473	2473	HB1824 - 68 - LRB104 09229 HLH 19286 b
2474	2474
2475	2475
2476	2476	HB1824- 69 -LRB104 09229 HLH 19286 b HB1824 - 69 - LRB104 09229 HLH 19286 b
2477	2477	HB1824 - 69 - LRB104 09229 HLH 19286 b
2478	2478	1 income pursuant to Sections 951 through 964 of the
2479	2479	2 Internal Revenue Code and amounts included in gross
2480	2480	3 income under Section 78 of the Internal Revenue Code)
2481	2481	4 with respect to the stock of the same person to whom
2482	2482	5 the intangible expenses and costs were directly or
2483	2483	6 indirectly paid, incurred, or accrued. The preceding
2484	2484	7 sentence shall not apply to the extent that the same
2485	2485	8 dividends caused a reduction to the addition
2486	2486	9 modification required under Section 203(c)(2)(G-12) of
2487	2487	10 this Act. As used in this subparagraph, the term
2488	2488	11 "intangible expenses and costs" includes: (1)
2489	2489	12 expenses, losses, and costs for or related to the
2490	2490	13 direct or indirect acquisition, use, maintenance or
2491	2491	14 management, ownership, sale, exchange, or any other
2492	2492	15 disposition of intangible property; (2) losses
2493	2493	16 incurred, directly or indirectly, from factoring
2494	2494	17 transactions or discounting transactions; (3) royalty,
2495	2495	18 patent, technical, and copyright fees; (4) licensing
2496	2496	19 fees; and (5) other similar expenses and costs. For
2497	2497	20 purposes of this subparagraph, "intangible property"
2498	2498	21 includes patents, patent applications, trade names,
2499	2499	22 trademarks, service marks, copyrights, mask works,
2500	2500	23 trade secrets, and similar types of intangible assets.
2501	2501	24 This paragraph shall not apply to the following:
2502	2502	25 (i) any item of intangible expenses or costs
2503	2503	26 paid, accrued, or incurred, directly or
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508
2509	2509	HB1824 - 69 - LRB104 09229 HLH 19286 b
2510	2510
2511	2511
2512	2512	HB1824- 70 -LRB104 09229 HLH 19286 b HB1824 - 70 - LRB104 09229 HLH 19286 b
2513	2513	HB1824 - 70 - LRB104 09229 HLH 19286 b
2514	2514	1 indirectly, from a transaction with a person who
2515	2515	2 is subject in a foreign country or state, other
2516	2516	3 than a state which requires mandatory unitary
2517	2517	4 reporting, to a tax on or measured by net income
2518	2518	5 with respect to such item; or
2519	2519	6 (ii) any item of intangible expense or cost
2520	2520	7 paid, accrued, or incurred, directly or
2521	2521	8 indirectly, if the taxpayer can establish, based
2522	2522	9 on a preponderance of the evidence, both of the
2523	2523	10 following:
2524	2524	11 (a) the person during the same taxable
2525	2525	12 year paid, accrued, or incurred, the
2526	2526	13 intangible expense or cost to a person that is
2527	2527	14 not a related member, and
2528	2528	15 (b) the transaction giving rise to the
2529	2529	16 intangible expense or cost between the
2530	2530	17 taxpayer and the person did not have as a
2531	2531	18 principal purpose the avoidance of Illinois
2532	2532	19 income tax, and is paid pursuant to a contract
2533	2533	20 or agreement that reflects arm's-length terms;
2534	2534	21 or
2535	2535	22 (iii) any item of intangible expense or cost
2536	2536	23 paid, accrued, or incurred, directly or
2537	2537	24 indirectly, from a transaction with a person if
2538	2538	25 the taxpayer establishes by clear and convincing
2539	2539	26 evidence, that the adjustments are unreasonable;
2540	2540
2541	2541
2542	2542
2543	2543
2544	2544
2545	2545	HB1824 - 70 - LRB104 09229 HLH 19286 b
2546	2546
2547	2547
2548	2548	HB1824- 71 -LRB104 09229 HLH 19286 b HB1824 - 71 - LRB104 09229 HLH 19286 b
2549	2549	HB1824 - 71 - LRB104 09229 HLH 19286 b
2550	2550	1 or if the taxpayer and the Director agree in
2551	2551	2 writing to the application or use of an
2552	2552	3 alternative method of apportionment under Section
2553	2553	4 304(f);
2554	2554	5 Nothing in this subsection shall preclude the
2555	2555	6 Director from making any other adjustment
2556	2556	7 otherwise allowed under Section 404 of this Act
2557	2557	8 for any tax year beginning after the effective
2558	2558	9 date of this amendment provided such adjustment is
2559	2559	10 made pursuant to regulation adopted by the
2560	2560	11 Department and such regulations provide methods
2561	2561	12 and standards by which the Department will utilize
2562	2562	13 its authority under Section 404 of this Act;
2563	2563	14 (G-14) For taxable years ending on or after
2564	2564	15 December 31, 2008, an amount equal to the amount of
2565	2565	16 insurance premium expenses and costs otherwise allowed
2566	2566	17 as a deduction in computing base income, and that were
2567	2567	18 paid, accrued, or incurred, directly or indirectly, to
2568	2568	19 a person who would be a member of the same unitary
2569	2569	20 business group but for the fact that the person is
2570	2570	21 prohibited under Section 1501(a)(27) from being
2571	2571	22 included in the unitary business group because he or
2572	2572	23 she is ordinarily required to apportion business
2573	2573	24 income under different subsections of Section 304. The
2574	2574	25 addition modification required by this subparagraph
2575	2575	26 shall be reduced to the extent that dividends were
2576	2576
2577	2577
2578	2578
2579	2579
2580	2580
2581	2581	HB1824 - 71 - LRB104 09229 HLH 19286 b
2582	2582
2583	2583
2584	2584	HB1824- 72 -LRB104 09229 HLH 19286 b HB1824 - 72 - LRB104 09229 HLH 19286 b
2585	2585	HB1824 - 72 - LRB104 09229 HLH 19286 b
2586	2586	1 included in base income of the unitary group for the
2587	2587	2 same taxable year and received by the taxpayer or by a
2588	2588	3 member of the taxpayer's unitary business group
2589	2589	4 (including amounts included in gross income under
2590	2590	5 Sections 951 through 964 of the Internal Revenue Code
2591	2591	6 and amounts included in gross income under Section 78
2592	2592	7 of the Internal Revenue Code) with respect to the
2593	2593	8 stock of the same person to whom the premiums and costs
2594	2594	9 were directly or indirectly paid, incurred, or
2595	2595	10 accrued. The preceding sentence does not apply to the
2596	2596	11 extent that the same dividends caused a reduction to
2597	2597	12 the addition modification required under Section
2598	2598	13 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2599	2599	14 Act;
2600	2600	15 (G-15) An amount equal to the credit allowable to
2601	2601	16 the taxpayer under Section 218(a) of this Act,
2602	2602	17 determined without regard to Section 218(c) of this
2603	2603	18 Act;
2604	2604	19 (G-16) For taxable years ending on or after
2605	2605	20 December 31, 2017, an amount equal to the deduction
2606	2606	21 allowed under Section 199 of the Internal Revenue Code
2607	2607	22 for the taxable year;
2608	2608	23 (G-17) the amount that is claimed as a federal
2609	2609	24 deduction when computing the taxpayer's federal
2610	2610	25 taxable income for the taxable year and that is
2611	2611	26 attributable to an endowment gift for which the
2612	2612
2613	2613
2614	2614
2615	2615
2616	2616
2617	2617	HB1824 - 72 - LRB104 09229 HLH 19286 b
2618	2618
2619	2619
2620	2620	HB1824- 73 -LRB104 09229 HLH 19286 b HB1824 - 73 - LRB104 09229 HLH 19286 b
2621	2621	HB1824 - 73 - LRB104 09229 HLH 19286 b
2622	2622	1 taxpayer receives a credit under the Illinois Gives
2623	2623	2 Tax Credit Act;
2624	2624	3 and by deducting from the total so obtained the sum of the
2625	2625	4 following amounts:
2626	2626	5 (H) An amount equal to all amounts included in
2627	2627	6 such total pursuant to the provisions of Sections
2628	2628	7 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2629	2629	8 of the Internal Revenue Code or included in such total
2630	2630	9 as distributions under the provisions of any
2631	2631	10 retirement or disability plan for employees of any
2632	2632	11 governmental agency or unit, or retirement payments to
2633	2633	12 retired partners, which payments are excluded in
2634	2634	13 computing net earnings from self employment by Section
2635	2635	14 1402 of the Internal Revenue Code and regulations
2636	2636	15 adopted pursuant thereto;
2637	2637	16 (I) The valuation limitation amount;
2638	2638	17 (J) An amount equal to the amount of any tax
2639	2639	18 imposed by this Act which was refunded to the taxpayer
2640	2640	19 and included in such total for the taxable year;
2641	2641	20 (K) An amount equal to all amounts included in
2642	2642	21 taxable income as modified by subparagraphs (A), (B),
2643	2643	22 (C), (D), (E), (F) and (G) which are exempt from
2644	2644	23 taxation by this State either by reason of its
2645	2645	24 statutes or Constitution or by reason of the
2646	2646	25 Constitution, treaties or statutes of the United
2647	2647	26 States; provided that, in the case of any statute of
2648	2648
2649	2649
2650	2650
2651	2651
2652	2652
2653	2653	HB1824 - 73 - LRB104 09229 HLH 19286 b
2654	2654
2655	2655
2656	2656	HB1824- 74 -LRB104 09229 HLH 19286 b HB1824 - 74 - LRB104 09229 HLH 19286 b
2657	2657	HB1824 - 74 - LRB104 09229 HLH 19286 b
2658	2658	1 this State that exempts income derived from bonds or
2659	2659	2 other obligations from the tax imposed under this Act,
2660	2660	3 the amount exempted shall be the interest net of bond
2661	2661	4 premium amortization;
2662	2662	5 (L) With the exception of any amounts subtracted
2663	2663	6 under subparagraph (K), an amount equal to the sum of
2664	2664	7 all amounts disallowed as deductions by (i) Sections
2665	2665	8 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2666	2666	9 and all amounts of expenses allocable to interest and
2667	2667	10 disallowed as deductions by Section 265(a)(1) of the
2668	2668	11 Internal Revenue Code; and (ii) for taxable years
2669	2669	12 ending on or after August 13, 1999, Sections
2670	2670	13 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2671	2671	14 Internal Revenue Code, plus, (iii) for taxable years
2672	2672	15 ending on or after December 31, 2011, Section
2673	2673	16 45G(e)(3) of the Internal Revenue Code and, for
2674	2674	17 taxable years ending on or after December 31, 2008,
2675	2675	18 any amount included in gross income under Section 87
2676	2676	19 of the Internal Revenue Code; the provisions of this
2677	2677	20 subparagraph are exempt from the provisions of Section
2678	2678	21 250;
2679	2679	22 (M) An amount equal to those dividends included in
2680	2680	23 such total which were paid by a corporation which
2681	2681	24 conducts business operations in a River Edge
2682	2682	25 Redevelopment Zone or zones created under the River
2683	2683	26 Edge Redevelopment Zone Act and conducts substantially
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688
2689	2689	HB1824 - 74 - LRB104 09229 HLH 19286 b
2690	2690
2691	2691
2692	2692	HB1824- 75 -LRB104 09229 HLH 19286 b HB1824 - 75 - LRB104 09229 HLH 19286 b
2693	2693	HB1824 - 75 - LRB104 09229 HLH 19286 b
2694	2694	1 all of its operations in a River Edge Redevelopment
2695	2695	2 Zone or zones. This subparagraph (M) is exempt from
2696	2696	3 the provisions of Section 250;
2697	2697	4 (N) An amount equal to any contribution made to a
2698	2698	5 job training project established pursuant to the Tax
2699	2699	6 Increment Allocation Redevelopment Act;
2700	2700	7 (O) An amount equal to those dividends included in
2701	2701	8 such total that were paid by a corporation that
2702	2702	9 conducts business operations in a federally designated
2703	2703	10 Foreign Trade Zone or Sub-Zone and that is designated
2704	2704	11 a High Impact Business located in Illinois; provided
2705	2705	12 that dividends eligible for the deduction provided in
2706	2706	13 subparagraph (M) of paragraph (2) of this subsection
2707	2707	14 shall not be eligible for the deduction provided under
2708	2708	15 this subparagraph (O);
2709	2709	16 (P) An amount equal to the amount of the deduction
2710	2710	17 used to compute the federal income tax credit for
2711	2711	18 restoration of substantial amounts held under claim of
2712	2712	19 right for the taxable year pursuant to Section 1341 of
2713	2713	20 the Internal Revenue Code;
2714	2714	21 (Q) For taxable year 1999 and thereafter, an
2715	2715	22 amount equal to the amount of any (i) distributions,
2716	2716	23 to the extent includible in gross income for federal
2717	2717	24 income tax purposes, made to the taxpayer because of
2718	2718	25 his or her status as a victim of persecution for racial
2719	2719	26 or religious reasons by Nazi Germany or any other Axis
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724
2725	2725	HB1824 - 75 - LRB104 09229 HLH 19286 b
2726	2726
2727	2727
2728	2728	HB1824- 76 -LRB104 09229 HLH 19286 b HB1824 - 76 - LRB104 09229 HLH 19286 b
2729	2729	HB1824 - 76 - LRB104 09229 HLH 19286 b
2730	2730	1 regime or as an heir of the victim and (ii) items of
2731	2731	2 income, to the extent includible in gross income for
2732	2732	3 federal income tax purposes, attributable to, derived
2733	2733	4 from or in any way related to assets stolen from,
2734	2734	5 hidden from, or otherwise lost to a victim of
2735	2735	6 persecution for racial or religious reasons by Nazi
2736	2736	7 Germany or any other Axis regime immediately prior to,
2737	2737	8 during, and immediately after World War II, including,
2738	2738	9 but not limited to, interest on the proceeds
2739	2739	10 receivable as insurance under policies issued to a
2740	2740	11 victim of persecution for racial or religious reasons
2741	2741	12 by Nazi Germany or any other Axis regime by European
2742	2742	13 insurance companies immediately prior to and during
2743	2743	14 World War II; provided, however, this subtraction from
2744	2744	15 federal adjusted gross income does not apply to assets
2745	2745	16 acquired with such assets or with the proceeds from
2746	2746	17 the sale of such assets; provided, further, this
2747	2747	18 paragraph shall only apply to a taxpayer who was the
2748	2748	19 first recipient of such assets after their recovery
2749	2749	20 and who is a victim of persecution for racial or
2750	2750	21 religious reasons by Nazi Germany or any other Axis
2751	2751	22 regime or as an heir of the victim. The amount of and
2752	2752	23 the eligibility for any public assistance, benefit, or
2753	2753	24 similar entitlement is not affected by the inclusion
2754	2754	25 of items (i) and (ii) of this paragraph in gross income
2755	2755	26 for federal income tax purposes. This paragraph is
2756	2756
2757	2757
2758	2758
2759	2759
2760	2760
2761	2761	HB1824 - 76 - LRB104 09229 HLH 19286 b
2762	2762
2763	2763
2764	2764	HB1824- 77 -LRB104 09229 HLH 19286 b HB1824 - 77 - LRB104 09229 HLH 19286 b
2765	2765	HB1824 - 77 - LRB104 09229 HLH 19286 b
2766	2766	1 exempt from the provisions of Section 250;
2767	2767	2 (R) For taxable years 2001 and thereafter, for the
2768	2768	3 taxable year in which the bonus depreciation deduction
2769	2769	4 is taken on the taxpayer's federal income tax return
2770	2770	5 under subsection (k) of Section 168 of the Internal
2771	2771	6 Revenue Code and for each applicable taxable year
2772	2772	7 thereafter, an amount equal to "x", where:
2773	2773	8 (1) "y" equals the amount of the depreciation
2774	2774	9 deduction taken for the taxable year on the
2775	2775	10 taxpayer's federal income tax return on property
2776	2776	11 for which the bonus depreciation deduction was
2777	2777	12 taken in any year under subsection (k) of Section
2778	2778	13 168 of the Internal Revenue Code, but not
2779	2779	14 including the bonus depreciation deduction;
2780	2780	15 (2) for taxable years ending on or before
2781	2781	16 December 31, 2005, "x" equals "y" multiplied by 30
2782	2782	17 and then divided by 70 (or "y" multiplied by
2783	2783	18 0.429); and
2784	2784	19 (3) for taxable years ending after December
2785	2785	20 31, 2005:
2786	2786	21 (i) for property on which a bonus
2787	2787	22 depreciation deduction of 30% of the adjusted
2788	2788	23 basis was taken, "x" equals "y" multiplied by
2789	2789	24 30 and then divided by 70 (or "y" multiplied
2790	2790	25 by 0.429);
2791	2791	26 (ii) for property on which a bonus
2792	2792
2793	2793
2794	2794
2795	2795
2796	2796
2797	2797	HB1824 - 77 - LRB104 09229 HLH 19286 b
2798	2798
2799	2799
2800	2800	HB1824- 78 -LRB104 09229 HLH 19286 b HB1824 - 78 - LRB104 09229 HLH 19286 b
2801	2801	HB1824 - 78 - LRB104 09229 HLH 19286 b
2802	2802	1 depreciation deduction of 50% of the adjusted
2803	2803	2 basis was taken, "x" equals "y" multiplied by
2804	2804	3 1.0;
2805	2805	4 (iii) for property on which a bonus
2806	2806	5 depreciation deduction of 100% of the adjusted
2807	2807	6 basis was taken in a taxable year ending on or
2808	2808	7 after December 31, 2021, "x" equals the
2809	2809	8 depreciation deduction that would be allowed
2810	2810	9 on that property if the taxpayer had made the
2811	2811	10 election under Section 168(k)(7) of the
2812	2812	11 Internal Revenue Code to not claim bonus
2813	2813	12 depreciation on that property; and
2814	2814	13 (iv) for property on which a bonus
2815	2815	14 depreciation deduction of a percentage other
2816	2816	15 than 30%, 50% or 100% of the adjusted basis
2817	2817	16 was taken in a taxable year ending on or after
2818	2818	17 December 31, 2021, "x" equals "y" multiplied
2819	2819	18 by 100 times the percentage bonus depreciation
2820	2820	19 on the property (that is, 100(bonus%)) and
2821	2821	20 then divided by 100 times 1 minus the
2822	2822	21 percentage bonus depreciation on the property
2823	2823	22 (that is, 100(1-bonus%)).
2824	2824	23 The aggregate amount deducted under this
2825	2825	24 subparagraph in all taxable years for any one piece of
2826	2826	25 property may not exceed the amount of the bonus
2827	2827	26 depreciation deduction taken on that property on the
2828	2828
2829	2829
2830	2830
2831	2831
2832	2832
2833	2833	HB1824 - 78 - LRB104 09229 HLH 19286 b
2834	2834
2835	2835
2836	2836	HB1824- 79 -LRB104 09229 HLH 19286 b HB1824 - 79 - LRB104 09229 HLH 19286 b
2837	2837	HB1824 - 79 - LRB104 09229 HLH 19286 b
2838	2838	1 taxpayer's federal income tax return under subsection
2839	2839	2 (k) of Section 168 of the Internal Revenue Code. This
2840	2840	3 subparagraph (R) is exempt from the provisions of
2841	2841	4 Section 250;
2842	2842	5 (S) If the taxpayer sells, transfers, abandons, or
2843	2843	6 otherwise disposes of property for which the taxpayer
2844	2844	7 was required in any taxable year to make an addition
2845	2845	8 modification under subparagraph (G-10), then an amount
2846	2846	9 equal to that addition modification.
2847	2847	10 If the taxpayer continues to own property through
2848	2848	11 the last day of the last tax year for which a
2849	2849	12 subtraction is allowed with respect to that property
2850	2850	13 under subparagraph (R) and for which the taxpayer was
2851	2851	14 required in any taxable year to make an addition
2852	2852	15 modification under subparagraph (G-10), then an amount
2853	2853	16 equal to that addition modification.
2854	2854	17 The taxpayer is allowed to take the deduction
2855	2855	18 under this subparagraph only once with respect to any
2856	2856	19 one piece of property.
2857	2857	20 This subparagraph (S) is exempt from the
2858	2858	21 provisions of Section 250;
2859	2859	22 (T) The amount of (i) any interest income (net of
2860	2860	23 the deductions allocable thereto) taken into account
2861	2861	24 for the taxable year with respect to a transaction
2862	2862	25 with a taxpayer that is required to make an addition
2863	2863	26 modification with respect to such transaction under
2864	2864
2865	2865
2866	2866
2867	2867
2868	2868
2869	2869	HB1824 - 79 - LRB104 09229 HLH 19286 b
2870	2870
2871	2871
2872	2872	HB1824- 80 -LRB104 09229 HLH 19286 b HB1824 - 80 - LRB104 09229 HLH 19286 b
2873	2873	HB1824 - 80 - LRB104 09229 HLH 19286 b
2874	2874	1 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2875	2875	2 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2876	2876	3 the amount of such addition modification and (ii) any
2877	2877	4 income from intangible property (net of the deductions
2878	2878	5 allocable thereto) taken into account for the taxable
2879	2879	6 year with respect to a transaction with a taxpayer
2880	2880	7 that is required to make an addition modification with
2881	2881	8 respect to such transaction under Section
2882	2882	9 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2883	2883	10 203(d)(2)(D-8), but not to exceed the amount of such
2884	2884	11 addition modification. This subparagraph (T) is exempt
2885	2885	12 from the provisions of Section 250;
2886	2886	13 (U) An amount equal to the interest income taken
2887	2887	14 into account for the taxable year (net of the
2888	2888	15 deductions allocable thereto) with respect to
2889	2889	16 transactions with (i) a foreign person who would be a
2890	2890	17 member of the taxpayer's unitary business group but
2891	2891	18 for the fact the foreign person's business activity
2892	2892	19 outside the United States is 80% or more of that
2893	2893	20 person's total business activity and (ii) for taxable
2894	2894	21 years ending on or after December 31, 2008, to a person
2895	2895	22 who would be a member of the same unitary business
2896	2896	23 group but for the fact that the person is prohibited
2897	2897	24 under Section 1501(a)(27) from being included in the
2898	2898	25 unitary business group because he or she is ordinarily
2899	2899	26 required to apportion business income under different
2900	2900
2901	2901
2902	2902
2903	2903
2904	2904
2905	2905	HB1824 - 80 - LRB104 09229 HLH 19286 b
2906	2906
2907	2907
2908	2908	HB1824- 81 -LRB104 09229 HLH 19286 b HB1824 - 81 - LRB104 09229 HLH 19286 b
2909	2909	HB1824 - 81 - LRB104 09229 HLH 19286 b
2910	2910	1 subsections of Section 304, but not to exceed the
2911	2911	2 addition modification required to be made for the same
2912	2912	3 taxable year under Section 203(c)(2)(G-12) for
2913	2913	4 interest paid, accrued, or incurred, directly or
2914	2914	5 indirectly, to the same person. This subparagraph (U)
2915	2915	6 is exempt from the provisions of Section 250;
2916	2916	7 (V) An amount equal to the income from intangible
2917	2917	8 property taken into account for the taxable year (net
2918	2918	9 of the deductions allocable thereto) with respect to
2919	2919	10 transactions with (i) a foreign person who would be a
2920	2920	11 member of the taxpayer's unitary business group but
2921	2921	12 for the fact that the foreign person's business
2922	2922	13 activity outside the United States is 80% or more of
2923	2923	14 that person's total business activity and (ii) for
2924	2924	15 taxable years ending on or after December 31, 2008, to
2925	2925	16 a person who would be a member of the same unitary
2926	2926	17 business group but for the fact that the person is
2927	2927	18 prohibited under Section 1501(a)(27) from being
2928	2928	19 included in the unitary business group because he or
2929	2929	20 she is ordinarily required to apportion business
2930	2930	21 income under different subsections of Section 304, but
2931	2931	22 not to exceed the addition modification required to be
2932	2932	23 made for the same taxable year under Section
2933	2933	24 203(c)(2)(G-13) for intangible expenses and costs
2934	2934	25 paid, accrued, or incurred, directly or indirectly, to
2935	2935	26 the same foreign person. This subparagraph (V) is
2936	2936
2937	2937
2938	2938
2939	2939
2940	2940
2941	2941	HB1824 - 81 - LRB104 09229 HLH 19286 b
2942	2942
2943	2943
2944	2944	HB1824- 82 -LRB104 09229 HLH 19286 b HB1824 - 82 - LRB104 09229 HLH 19286 b
2945	2945	HB1824 - 82 - LRB104 09229 HLH 19286 b
2946	2946	1 exempt from the provisions of Section 250;
2947	2947	2 (W) in the case of an estate, an amount equal to
2948	2948	3 all amounts included in such total pursuant to the
2949	2949	4 provisions of Section 111 of the Internal Revenue Code
2950	2950	5 as a recovery of items previously deducted by the
2951	2951	6 decedent from adjusted gross income in the computation
2952	2952	7 of taxable income. This subparagraph (W) is exempt
2953	2953	8 from Section 250;
2954	2954	9 (X) an amount equal to the refund included in such
2955	2955	10 total of any tax deducted for federal income tax
2956	2956	11 purposes, to the extent that deduction was added back
2957	2957	12 under subparagraph (F). This subparagraph (X) is
2958	2958	13 exempt from the provisions of Section 250;
2959	2959	14 (Y) For taxable years ending on or after December
2960	2960	15 31, 2011, in the case of a taxpayer who was required to
2961	2961	16 add back any insurance premiums under Section
2962	2962	17 203(c)(2)(G-14), such taxpayer may elect to subtract
2963	2963	18 that part of a reimbursement received from the
2964	2964	19 insurance company equal to the amount of the expense
2965	2965	20 or loss (including expenses incurred by the insurance
2966	2966	21 company) that would have been taken into account as a
2967	2967	22 deduction for federal income tax purposes if the
2968	2968	23 expense or loss had been uninsured. If a taxpayer
2969	2969	24 makes the election provided for by this subparagraph
2970	2970	25 (Y), the insurer to which the premiums were paid must
2971	2971	26 add back to income the amount subtracted by the
2972	2972
2973	2973
2974	2974
2975	2975
2976	2976
2977	2977	HB1824 - 82 - LRB104 09229 HLH 19286 b
2978	2978
2979	2979
2980	2980	HB1824- 83 -LRB104 09229 HLH 19286 b HB1824 - 83 - LRB104 09229 HLH 19286 b
2981	2981	HB1824 - 83 - LRB104 09229 HLH 19286 b
2982	2982	1 taxpayer pursuant to this subparagraph (Y). This
2983	2983	2 subparagraph (Y) is exempt from the provisions of
2984	2984	3 Section 250;
2985	2985	4 (Z) For taxable years beginning after December 31,
2986	2986	5 2018 and before January 1, 2026, the amount of excess
2987	2987	6 business loss of the taxpayer disallowed as a
2988	2988	7 deduction by Section 461(l)(1)(B) of the Internal
2989	2989	8 Revenue Code; and
2990	2990	9 (AA) For taxable years beginning on or after
2991	2991	10 January 1, 2023, for any cannabis establishment
2992	2992	11 operating in this State and licensed under the
2993	2993	12 Cannabis Regulation and Tax Act or any cannabis
2994	2994	13 cultivation center or medical cannabis dispensing
2995	2995	14 organization operating in this State and licensed
2996	2996	15 under the Compassionate Use of Medical Cannabis
2997	2997	16 Program Act, an amount equal to the deductions that
2998	2998	17 were disallowed under Section 280E of the Internal
2999	2999	18 Revenue Code for the taxable year and that would not be
3000	3000	19 added back under this subsection. The provisions of
3001	3001	20 this subparagraph (AA) are exempt from the provisions
3002	3002	21 of Section 250.
3003	3003	22 (3) Limitation. The amount of any modification
3004	3004	23 otherwise required under this subsection shall, under
3005	3005	24 regulations prescribed by the Department, be adjusted by
3006	3006	25 any amounts included therein which were properly paid,
3007	3007	26 credited, or required to be distributed, or permanently
3008	3008
3009	3009
3010	3010
3011	3011
3012	3012
3013	3013	HB1824 - 83 - LRB104 09229 HLH 19286 b
3014	3014
3015	3015
3016	3016	HB1824- 84 -LRB104 09229 HLH 19286 b HB1824 - 84 - LRB104 09229 HLH 19286 b
3017	3017	HB1824 - 84 - LRB104 09229 HLH 19286 b
3018	3018	1 set aside for charitable purposes pursuant to Internal
3019	3019	2 Revenue Code Section 642(c) during the taxable year.
3020	3020	3 (d) Partnerships.
3021	3021	4 (1) In general. In the case of a partnership, base
3022	3022	5 income means an amount equal to the taxpayer's taxable
3023	3023	6 income for the taxable year as modified by paragraph (2).
3024	3024	7 (2) Modifications. The taxable income referred to in
3025	3025	8 paragraph (1) shall be modified by adding thereto the sum
3026	3026	9 of the following amounts:
3027	3027	10 (A) An amount equal to all amounts paid or accrued
3028	3028	11 to the taxpayer as interest or dividends during the
3029	3029	12 taxable year to the extent excluded from gross income
3030	3030	13 in the computation of taxable income;
3031	3031	14 (B) An amount equal to the amount of tax imposed by
3032	3032	15 this Act to the extent deducted from gross income for
3033	3033	16 the taxable year;
3034	3034	17 (C) The amount of deductions allowed to the
3035	3035	18 partnership pursuant to Section 707 (c) of the
3036	3036	19 Internal Revenue Code in calculating its taxable
3037	3037	20 income;
3038	3038	21 (D) An amount equal to the amount of the capital
3039	3039	22 gain deduction allowable under the Internal Revenue
3040	3040	23 Code, to the extent deducted from gross income in the
3041	3041	24 computation of taxable income;
3042	3042	25 (D-5) For taxable years 2001 and thereafter, an
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047
3048	3048	HB1824 - 84 - LRB104 09229 HLH 19286 b
3049	3049
3050	3050
3051	3051	HB1824- 85 -LRB104 09229 HLH 19286 b HB1824 - 85 - LRB104 09229 HLH 19286 b
3052	3052	HB1824 - 85 - LRB104 09229 HLH 19286 b
3053	3053	1 amount equal to the bonus depreciation deduction taken
3054	3054	2 on the taxpayer's federal income tax return for the
3055	3055	3 taxable year under subsection (k) of Section 168 of
3056	3056	4 the Internal Revenue Code;
3057	3057	5 (D-6) If the taxpayer sells, transfers, abandons,
3058	3058	6 or otherwise disposes of property for which the
3059	3059	7 taxpayer was required in any taxable year to make an
3060	3060	8 addition modification under subparagraph (D-5), then
3061	3061	9 an amount equal to the aggregate amount of the
3062	3062	10 deductions taken in all taxable years under
3063	3063	11 subparagraph (O) with respect to that property.
3064	3064	12 If the taxpayer continues to own property through
3065	3065	13 the last day of the last tax year for which a
3066	3066	14 subtraction is allowed with respect to that property
3067	3067	15 under subparagraph (O) and for which the taxpayer was
3068	3068	16 allowed in any taxable year to make a subtraction
3069	3069	17 modification under subparagraph (O), then an amount
3070	3070	18 equal to that subtraction modification.
3071	3071	19 The taxpayer is required to make the addition
3072	3072	20 modification under this subparagraph only once with
3073	3073	21 respect to any one piece of property;
3074	3074	22 (D-7) An amount equal to the amount otherwise
3075	3075	23 allowed as a deduction in computing base income for
3076	3076	24 interest paid, accrued, or incurred, directly or
3077	3077	25 indirectly, (i) for taxable years ending on or after
3078	3078	26 December 31, 2004, to a foreign person who would be a
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083
3084	3084	HB1824 - 85 - LRB104 09229 HLH 19286 b
3085	3085
3086	3086
3087	3087	HB1824- 86 -LRB104 09229 HLH 19286 b HB1824 - 86 - LRB104 09229 HLH 19286 b
3088	3088	HB1824 - 86 - LRB104 09229 HLH 19286 b
3089	3089	1 member of the same unitary business group but for the
3090	3090	2 fact the foreign person's business activity outside
3091	3091	3 the United States is 80% or more of the foreign
3092	3092	4 person's total business activity and (ii) for taxable
3093	3093	5 years ending on or after December 31, 2008, to a person
3094	3094	6 who would be a member of the same unitary business
3095	3095	7 group but for the fact that the person is prohibited
3096	3096	8 under Section 1501(a)(27) from being included in the
3097	3097	9 unitary business group because he or she is ordinarily
3098	3098	10 required to apportion business income under different
3099	3099	11 subsections of Section 304. The addition modification
3100	3100	12 required by this subparagraph shall be reduced to the
3101	3101	13 extent that dividends were included in base income of
3102	3102	14 the unitary group for the same taxable year and
3103	3103	15 received by the taxpayer or by a member of the
3104	3104	16 taxpayer's unitary business group (including amounts
3105	3105	17 included in gross income pursuant to Sections 951
3106	3106	18 through 964 of the Internal Revenue Code and amounts
3107	3107	19 included in gross income under Section 78 of the
3108	3108	20 Internal Revenue Code) with respect to the stock of
3109	3109	21 the same person to whom the interest was paid,
3110	3110	22 accrued, or incurred.
3111	3111	23 This paragraph shall not apply to the following:
3112	3112	24 (i) an item of interest paid, accrued, or
3113	3113	25 incurred, directly or indirectly, to a person who
3114	3114	26 is subject in a foreign country or state, other
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119
3120	3120	HB1824 - 86 - LRB104 09229 HLH 19286 b
3121	3121
3122	3122
3123	3123	HB1824- 87 -LRB104 09229 HLH 19286 b HB1824 - 87 - LRB104 09229 HLH 19286 b
3124	3124	HB1824 - 87 - LRB104 09229 HLH 19286 b
3125	3125	1 than a state which requires mandatory unitary
3126	3126	2 reporting, to a tax on or measured by net income
3127	3127	3 with respect to such interest; or
3128	3128	4 (ii) an item of interest paid, accrued, or
3129	3129	5 incurred, directly or indirectly, to a person if
3130	3130	6 the taxpayer can establish, based on a
3131	3131	7 preponderance of the evidence, both of the
3132	3132	8 following:
3133	3133	9 (a) the person, during the same taxable
3134	3134	10 year, paid, accrued, or incurred, the interest
3135	3135	11 to a person that is not a related member, and
3136	3136	12 (b) the transaction giving rise to the
3137	3137	13 interest expense between the taxpayer and the
3138	3138	14 person did not have as a principal purpose the
3139	3139	15 avoidance of Illinois income tax, and is paid
3140	3140	16 pursuant to a contract or agreement that
3141	3141	17 reflects an arm's-length interest rate and
3142	3142	18 terms; or
3143	3143	19 (iii) the taxpayer can establish, based on
3144	3144	20 clear and convincing evidence, that the interest
3145	3145	21 paid, accrued, or incurred relates to a contract
3146	3146	22 or agreement entered into at arm's-length rates
3147	3147	23 and terms and the principal purpose for the
3148	3148	24 payment is not federal or Illinois tax avoidance;
3149	3149	25 or
3150	3150	26 (iv) an item of interest paid, accrued, or
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155
3156	3156	HB1824 - 87 - LRB104 09229 HLH 19286 b
3157	3157
3158	3158
3159	3159	HB1824- 88 -LRB104 09229 HLH 19286 b HB1824 - 88 - LRB104 09229 HLH 19286 b
3160	3160	HB1824 - 88 - LRB104 09229 HLH 19286 b
3161	3161	1 incurred, directly or indirectly, to a person if
3162	3162	2 the taxpayer establishes by clear and convincing
3163	3163	3 evidence that the adjustments are unreasonable; or
3164	3164	4 if the taxpayer and the Director agree in writing
3165	3165	5 to the application or use of an alternative method
3166	3166	6 of apportionment under Section 304(f).
3167	3167	7 Nothing in this subsection shall preclude the
3168	3168	8 Director from making any other adjustment
3169	3169	9 otherwise allowed under Section 404 of this Act
3170	3170	10 for any tax year beginning after the effective
3171	3171	11 date of this amendment provided such adjustment is
3172	3172	12 made pursuant to regulation adopted by the
3173	3173	13 Department and such regulations provide methods
3174	3174	14 and standards by which the Department will utilize
3175	3175	15 its authority under Section 404 of this Act; and
3176	3176	16 (D-8) An amount equal to the amount of intangible
3177	3177	17 expenses and costs otherwise allowed as a deduction in
3178	3178	18 computing base income, and that were paid, accrued, or
3179	3179	19 incurred, directly or indirectly, (i) for taxable
3180	3180	20 years ending on or after December 31, 2004, to a
3181	3181	21 foreign person who would be a member of the same
3182	3182	22 unitary business group but for the fact that the
3183	3183	23 foreign person's business activity outside the United
3184	3184	24 States is 80% or more of that person's total business
3185	3185	25 activity and (ii) for taxable years ending on or after
3186	3186	26 December 31, 2008, to a person who would be a member of
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191
3192	3192	HB1824 - 88 - LRB104 09229 HLH 19286 b
3193	3193
3194	3194
3195	3195	HB1824- 89 -LRB104 09229 HLH 19286 b HB1824 - 89 - LRB104 09229 HLH 19286 b
3196	3196	HB1824 - 89 - LRB104 09229 HLH 19286 b
3197	3197	1 the same unitary business group but for the fact that
3198	3198	2 the person is prohibited under Section 1501(a)(27)
3199	3199	3 from being included in the unitary business group
3200	3200	4 because he or she is ordinarily required to apportion
3201	3201	5 business income under different subsections of Section
3202	3202	6 304. The addition modification required by this
3203	3203	7 subparagraph shall be reduced to the extent that
3204	3204	8 dividends were included in base income of the unitary
3205	3205	9 group for the same taxable year and received by the
3206	3206	10 taxpayer or by a member of the taxpayer's unitary
3207	3207	11 business group (including amounts included in gross
3208	3208	12 income pursuant to Sections 951 through 964 of the
3209	3209	13 Internal Revenue Code and amounts included in gross
3210	3210	14 income under Section 78 of the Internal Revenue Code)
3211	3211	15 with respect to the stock of the same person to whom
3212	3212	16 the intangible expenses and costs were directly or
3213	3213	17 indirectly paid, incurred or accrued. The preceding
3214	3214	18 sentence shall not apply to the extent that the same
3215	3215	19 dividends caused a reduction to the addition
3216	3216	20 modification required under Section 203(d)(2)(D-7) of
3217	3217	21 this Act. As used in this subparagraph, the term
3218	3218	22 "intangible expenses and costs" includes (1) expenses,
3219	3219	23 losses, and costs for, or related to, the direct or
3220	3220	24 indirect acquisition, use, maintenance or management,
3221	3221	25 ownership, sale, exchange, or any other disposition of
3222	3222	26 intangible property; (2) losses incurred, directly or
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227
3228	3228	HB1824 - 89 - LRB104 09229 HLH 19286 b
3229	3229
3230	3230
3231	3231	HB1824- 90 -LRB104 09229 HLH 19286 b HB1824 - 90 - LRB104 09229 HLH 19286 b
3232	3232	HB1824 - 90 - LRB104 09229 HLH 19286 b
3233	3233	1 indirectly, from factoring transactions or discounting
3234	3234	2 transactions; (3) royalty, patent, technical, and
3235	3235	3 copyright fees; (4) licensing fees; and (5) other
3236	3236	4 similar expenses and costs. For purposes of this
3237	3237	5 subparagraph, "intangible property" includes patents,
3238	3238	6 patent applications, trade names, trademarks, service
3239	3239	7 marks, copyrights, mask works, trade secrets, and
3240	3240	8 similar types of intangible assets;
3241	3241	9 This paragraph shall not apply to the following:
3242	3242	10 (i) any item of intangible expenses or costs
3243	3243	11 paid, accrued, or incurred, directly or
3244	3244	12 indirectly, from a transaction with a person who
3245	3245	13 is subject in a foreign country or state, other
3246	3246	14 than a state which requires mandatory unitary
3247	3247	15 reporting, to a tax on or measured by net income
3248	3248	16 with respect to such item; or
3249	3249	17 (ii) any item of intangible expense or cost
3250	3250	18 paid, accrued, or incurred, directly or
3251	3251	19 indirectly, if the taxpayer can establish, based
3252	3252	20 on a preponderance of the evidence, both of the
3253	3253	21 following:
3254	3254	22 (a) the person during the same taxable
3255	3255	23 year paid, accrued, or incurred, the
3256	3256	24 intangible expense or cost to a person that is
3257	3257	25 not a related member, and
3258	3258	26 (b) the transaction giving rise to the
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263
3264	3264	HB1824 - 90 - LRB104 09229 HLH 19286 b
3265	3265
3266	3266
3267	3267	HB1824- 91 -LRB104 09229 HLH 19286 b HB1824 - 91 - LRB104 09229 HLH 19286 b
3268	3268	HB1824 - 91 - LRB104 09229 HLH 19286 b
3269	3269	1 intangible expense or cost between the
3270	3270	2 taxpayer and the person did not have as a
3271	3271	3 principal purpose the avoidance of Illinois
3272	3272	4 income tax, and is paid pursuant to a contract
3273	3273	5 or agreement that reflects arm's-length terms;
3274	3274	6 or
3275	3275	7 (iii) any item of intangible expense or cost
3276	3276	8 paid, accrued, or incurred, directly or
3277	3277	9 indirectly, from a transaction with a person if
3278	3278	10 the taxpayer establishes by clear and convincing
3279	3279	11 evidence, that the adjustments are unreasonable;
3280	3280	12 or if the taxpayer and the Director agree in
3281	3281	13 writing to the application or use of an
3282	3282	14 alternative method of apportionment under Section
3283	3283	15 304(f);
3284	3284	16 Nothing in this subsection shall preclude the
3285	3285	17 Director from making any other adjustment
3286	3286	18 otherwise allowed under Section 404 of this Act
3287	3287	19 for any tax year beginning after the effective
3288	3288	20 date of this amendment provided such adjustment is
3289	3289	21 made pursuant to regulation adopted by the
3290	3290	22 Department and such regulations provide methods
3291	3291	23 and standards by which the Department will utilize
3292	3292	24 its authority under Section 404 of this Act;
3293	3293	25 (D-9) For taxable years ending on or after
3294	3294	26 December 31, 2008, an amount equal to the amount of
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299
3300	3300	HB1824 - 91 - LRB104 09229 HLH 19286 b
3301	3301
3302	3302
3303	3303	HB1824- 92 -LRB104 09229 HLH 19286 b HB1824 - 92 - LRB104 09229 HLH 19286 b
3304	3304	HB1824 - 92 - LRB104 09229 HLH 19286 b
3305	3305	1 insurance premium expenses and costs otherwise allowed
3306	3306	2 as a deduction in computing base income, and that were
3307	3307	3 paid, accrued, or incurred, directly or indirectly, to
3308	3308	4 a person who would be a member of the same unitary
3309	3309	5 business group but for the fact that the person is
3310	3310	6 prohibited under Section 1501(a)(27) from being
3311	3311	7 included in the unitary business group because he or
3312	3312	8 she is ordinarily required to apportion business
3313	3313	9 income under different subsections of Section 304. The
3314	3314	10 addition modification required by this subparagraph
3315	3315	11 shall be reduced to the extent that dividends were
3316	3316	12 included in base income of the unitary group for the
3317	3317	13 same taxable year and received by the taxpayer or by a
3318	3318	14 member of the taxpayer's unitary business group
3319	3319	15 (including amounts included in gross income under
3320	3320	16 Sections 951 through 964 of the Internal Revenue Code
3321	3321	17 and amounts included in gross income under Section 78
3322	3322	18 of the Internal Revenue Code) with respect to the
3323	3323	19 stock of the same person to whom the premiums and costs
3324	3324	20 were directly or indirectly paid, incurred, or
3325	3325	21 accrued. The preceding sentence does not apply to the
3326	3326	22 extent that the same dividends caused a reduction to
3327	3327	23 the addition modification required under Section
3328	3328	24 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
3329	3329	25 (D-10) An amount equal to the credit allowable to
3330	3330	26 the taxpayer under Section 218(a) of this Act,
3331	3331
3332	3332
3333	3333
3334	3334
3335	3335
3336	3336	HB1824 - 92 - LRB104 09229 HLH 19286 b
3337	3337
3338	3338
3339	3339	HB1824- 93 -LRB104 09229 HLH 19286 b HB1824 - 93 - LRB104 09229 HLH 19286 b
3340	3340	HB1824 - 93 - LRB104 09229 HLH 19286 b
3341	3341	1 determined without regard to Section 218(c) of this
3342	3342	2 Act;
3343	3343	3 (D-11) For taxable years ending on or after
3344	3344	4 December 31, 2017, an amount equal to the deduction
3345	3345	5 allowed under Section 199 of the Internal Revenue Code
3346	3346	6 for the taxable year;
3347	3347	7 (D-12) the amount that is claimed as a federal
3348	3348	8 deduction when computing the taxpayer's federal
3349	3349	9 taxable income for the taxable year and that is
3350	3350	10 attributable to an endowment gift for which the
3351	3351	11 taxpayer receives a credit under the Illinois Gives
3352	3352	12 Tax Credit Act;
3353	3353	13 and by deducting from the total so obtained the following
3354	3354	14 amounts:
3355	3355	15 (E) The valuation limitation amount;
3356	3356	16 (F) An amount equal to the amount of any tax
3357	3357	17 imposed by this Act which was refunded to the taxpayer
3358	3358	18 and included in such total for the taxable year;
3359	3359	19 (G) An amount equal to all amounts included in
3360	3360	20 taxable income as modified by subparagraphs (A), (B),
3361	3361	21 (C) and (D) which are exempt from taxation by this
3362	3362	22 State either by reason of its statutes or Constitution
3363	3363	23 or by reason of the Constitution, treaties or statutes
3364	3364	24 of the United States; provided that, in the case of any
3365	3365	25 statute of this State that exempts income derived from
3366	3366	26 bonds or other obligations from the tax imposed under
3367	3367
3368	3368
3369	3369
3370	3370
3371	3371
3372	3372	HB1824 - 93 - LRB104 09229 HLH 19286 b
3373	3373
3374	3374
3375	3375	HB1824- 94 -LRB104 09229 HLH 19286 b HB1824 - 94 - LRB104 09229 HLH 19286 b
3376	3376	HB1824 - 94 - LRB104 09229 HLH 19286 b
3377	3377	1 this Act, the amount exempted shall be the interest
3378	3378	2 net of bond premium amortization;
3379	3379	3 (H) Any income of the partnership which
3380	3380	4 constitutes personal service income as defined in
3381	3381	5 Section 1348(b)(1) of the Internal Revenue Code (as in
3382	3382	6 effect December 31, 1981) or a reasonable allowance
3383	3383	7 for compensation paid or accrued for services rendered
3384	3384	8 by partners to the partnership, whichever is greater;
3385	3385	9 this subparagraph (H) is exempt from the provisions of
3386	3386	10 Section 250;
3387	3387	11 (I) An amount equal to all amounts of income
3388	3388	12 distributable to an entity subject to the Personal
3389	3389	13 Property Tax Replacement Income Tax imposed by
3390	3390	14 subsections (c) and (d) of Section 201 of this Act
3391	3391	15 including amounts distributable to organizations
3392	3392	16 exempt from federal income tax by reason of Section
3393	3393	17 501(a) of the Internal Revenue Code; this subparagraph
3394	3394	18 (I) is exempt from the provisions of Section 250;
3395	3395	19 (J) With the exception of any amounts subtracted
3396	3396	20 under subparagraph (G), an amount equal to the sum of
3397	3397	21 all amounts disallowed as deductions by (i) Sections
3398	3398	22 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3399	3399	23 and all amounts of expenses allocable to interest and
3400	3400	24 disallowed as deductions by Section 265(a)(1) of the
3401	3401	25 Internal Revenue Code; and (ii) for taxable years
3402	3402	26 ending on or after August 13, 1999, Sections
3403	3403
3404	3404
3405	3405
3406	3406
3407	3407
3408	3408	HB1824 - 94 - LRB104 09229 HLH 19286 b
3409	3409
3410	3410
3411	3411	HB1824- 95 -LRB104 09229 HLH 19286 b HB1824 - 95 - LRB104 09229 HLH 19286 b
3412	3412	HB1824 - 95 - LRB104 09229 HLH 19286 b
3413	3413	1 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3414	3414	2 Internal Revenue Code, plus, (iii) for taxable years
3415	3415	3 ending on or after December 31, 2011, Section
3416	3416	4 45G(e)(3) of the Internal Revenue Code and, for
3417	3417	5 taxable years ending on or after December 31, 2008,
3418	3418	6 any amount included in gross income under Section 87
3419	3419	7 of the Internal Revenue Code; the provisions of this
3420	3420	8 subparagraph are exempt from the provisions of Section
3421	3421	9 250;
3422	3422	10 (K) An amount equal to those dividends included in
3423	3423	11 such total which were paid by a corporation which
3424	3424	12 conducts business operations in a River Edge
3425	3425	13 Redevelopment Zone or zones created under the River
3426	3426	14 Edge Redevelopment Zone Act and conducts substantially
3427	3427	15 all of its operations from a River Edge Redevelopment
3428	3428	16 Zone or zones. This subparagraph (K) is exempt from
3429	3429	17 the provisions of Section 250;
3430	3430	18 (L) An amount equal to any contribution made to a
3431	3431	19 job training project established pursuant to the Real
3432	3432	20 Property Tax Increment Allocation Redevelopment Act;
3433	3433	21 (M) An amount equal to those dividends included in
3434	3434	22 such total that were paid by a corporation that
3435	3435	23 conducts business operations in a federally designated
3436	3436	24 Foreign Trade Zone or Sub-Zone and that is designated
3437	3437	25 a High Impact Business located in Illinois; provided
3438	3438	26 that dividends eligible for the deduction provided in
3439	3439
3440	3440
3441	3441
3442	3442
3443	3443
3444	3444	HB1824 - 95 - LRB104 09229 HLH 19286 b
3445	3445
3446	3446
3447	3447	HB1824- 96 -LRB104 09229 HLH 19286 b HB1824 - 96 - LRB104 09229 HLH 19286 b
3448	3448	HB1824 - 96 - LRB104 09229 HLH 19286 b
3449	3449	1 subparagraph (K) of paragraph (2) of this subsection
3450	3450	2 shall not be eligible for the deduction provided under
3451	3451	3 this subparagraph (M);
3452	3452	4 (N) An amount equal to the amount of the deduction
3453	3453	5 used to compute the federal income tax credit for
3454	3454	6 restoration of substantial amounts held under claim of
3455	3455	7 right for the taxable year pursuant to Section 1341 of
3456	3456	8 the Internal Revenue Code;
3457	3457	9 (O) For taxable years 2001 and thereafter, for the
3458	3458	10 taxable year in which the bonus depreciation deduction
3459	3459	11 is taken on the taxpayer's federal income tax return
3460	3460	12 under subsection (k) of Section 168 of the Internal
3461	3461	13 Revenue Code and for each applicable taxable year
3462	3462	14 thereafter, an amount equal to "x", where:
3463	3463	15 (1) "y" equals the amount of the depreciation
3464	3464	16 deduction taken for the taxable year on the
3465	3465	17 taxpayer's federal income tax return on property
3466	3466	18 for which the bonus depreciation deduction was
3467	3467	19 taken in any year under subsection (k) of Section
3468	3468	20 168 of the Internal Revenue Code, but not
3469	3469	21 including the bonus depreciation deduction;
3470	3470	22 (2) for taxable years ending on or before
3471	3471	23 December 31, 2005, "x" equals "y" multiplied by 30
3472	3472	24 and then divided by 70 (or "y" multiplied by
3473	3473	25 0.429); and
3474	3474	26 (3) for taxable years ending after December
3475	3475
3476	3476
3477	3477
3478	3478
3479	3479
3480	3480	HB1824 - 96 - LRB104 09229 HLH 19286 b
3481	3481
3482	3482
3483	3483	HB1824- 97 -LRB104 09229 HLH 19286 b HB1824 - 97 - LRB104 09229 HLH 19286 b
3484	3484	HB1824 - 97 - LRB104 09229 HLH 19286 b
3485	3485	1 31, 2005:
3486	3486	2 (i) for property on which a bonus
3487	3487	3 depreciation deduction of 30% of the adjusted
3488	3488	4 basis was taken, "x" equals "y" multiplied by
3489	3489	5 30 and then divided by 70 (or "y" multiplied
3490	3490	6 by 0.429);
3491	3491	7 (ii) for property on which a bonus
3492	3492	8 depreciation deduction of 50% of the adjusted
3493	3493	9 basis was taken, "x" equals "y" multiplied by
3494	3494	10 1.0;
3495	3495	11 (iii) for property on which a bonus
3496	3496	12 depreciation deduction of 100% of the adjusted
3497	3497	13 basis was taken in a taxable year ending on or
3498	3498	14 after December 31, 2021, "x" equals the
3499	3499	15 depreciation deduction that would be allowed
3500	3500	16 on that property if the taxpayer had made the
3501	3501	17 election under Section 168(k)(7) of the
3502	3502	18 Internal Revenue Code to not claim bonus
3503	3503	19 depreciation on that property; and
3504	3504	20 (iv) for property on which a bonus
3505	3505	21 depreciation deduction of a percentage other
3506	3506	22 than 30%, 50% or 100% of the adjusted basis
3507	3507	23 was taken in a taxable year ending on or after
3508	3508	24 December 31, 2021, "x" equals "y" multiplied
3509	3509	25 by 100 times the percentage bonus depreciation
3510	3510	26 on the property (that is, 100(bonus%)) and
3511	3511
3512	3512
3513	3513
3514	3514
3515	3515
3516	3516	HB1824 - 97 - LRB104 09229 HLH 19286 b
3517	3517
3518	3518
3519	3519	HB1824- 98 -LRB104 09229 HLH 19286 b HB1824 - 98 - LRB104 09229 HLH 19286 b
3520	3520	HB1824 - 98 - LRB104 09229 HLH 19286 b
3521	3521	1 then divided by 100 times 1 minus the
3522	3522	2 percentage bonus depreciation on the property
3523	3523	3 (that is, 100(1-bonus%)).
3524	3524	4 The aggregate amount deducted under this
3525	3525	5 subparagraph in all taxable years for any one piece of
3526	3526	6 property may not exceed the amount of the bonus
3527	3527	7 depreciation deduction taken on that property on the
3528	3528	8 taxpayer's federal income tax return under subsection
3529	3529	9 (k) of Section 168 of the Internal Revenue Code. This
3530	3530	10 subparagraph (O) is exempt from the provisions of
3531	3531	11 Section 250;
3532	3532	12 (P) If the taxpayer sells, transfers, abandons, or
3533	3533	13 otherwise disposes of property for which the taxpayer
3534	3534	14 was required in any taxable year to make an addition
3535	3535	15 modification under subparagraph (D-5), then an amount
3536	3536	16 equal to that addition modification.
3537	3537	17 If the taxpayer continues to own property through
3538	3538	18 the last day of the last tax year for which a
3539	3539	19 subtraction is allowed with respect to that property
3540	3540	20 under subparagraph (O) and for which the taxpayer was
3541	3541	21 required in any taxable year to make an addition
3542	3542	22 modification under subparagraph (D-5), then an amount
3543	3543	23 equal to that addition modification.
3544	3544	24 The taxpayer is allowed to take the deduction
3545	3545	25 under this subparagraph only once with respect to any
3546	3546	26 one piece of property.
3547	3547
3548	3548
3549	3549
3550	3550
3551	3551
3552	3552	HB1824 - 98 - LRB104 09229 HLH 19286 b
3553	3553
3554	3554
3555	3555	HB1824- 99 -LRB104 09229 HLH 19286 b HB1824 - 99 - LRB104 09229 HLH 19286 b
3556	3556	HB1824 - 99 - LRB104 09229 HLH 19286 b
3557	3557	1 This subparagraph (P) is exempt from the
3558	3558	2 provisions of Section 250;
3559	3559	3 (Q) The amount of (i) any interest income (net of
3560	3560	4 the deductions allocable thereto) taken into account
3561	3561	5 for the taxable year with respect to a transaction
3562	3562	6 with a taxpayer that is required to make an addition
3563	3563	7 modification with respect to such transaction under
3564	3564	8 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3565	3565	9 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3566	3566	10 the amount of such addition modification and (ii) any
3567	3567	11 income from intangible property (net of the deductions
3568	3568	12 allocable thereto) taken into account for the taxable
3569	3569	13 year with respect to a transaction with a taxpayer
3570	3570	14 that is required to make an addition modification with
3571	3571	15 respect to such transaction under Section
3572	3572	16 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3573	3573	17 203(d)(2)(D-8), but not to exceed the amount of such
3574	3574	18 addition modification. This subparagraph (Q) is exempt
3575	3575	19 from Section 250;
3576	3576	20 (R) An amount equal to the interest income taken
3577	3577	21 into account for the taxable year (net of the
3578	3578	22 deductions allocable thereto) with respect to
3579	3579	23 transactions with (i) a foreign person who would be a
3580	3580	24 member of the taxpayer's unitary business group but
3581	3581	25 for the fact that the foreign person's business
3582	3582	26 activity outside the United States is 80% or more of
3583	3583
3584	3584
3585	3585
3586	3586
3587	3587
3588	3588	HB1824 - 99 - LRB104 09229 HLH 19286 b
3589	3589
3590	3590
3591	3591	HB1824- 100 -LRB104 09229 HLH 19286 b HB1824 - 100 - LRB104 09229 HLH 19286 b
3592	3592	HB1824 - 100 - LRB104 09229 HLH 19286 b
3593	3593	1 that person's total business activity and (ii) for
3594	3594	2 taxable years ending on or after December 31, 2008, to
3595	3595	3 a person who would be a member of the same unitary
3596	3596	4 business group but for the fact that the person is
3597	3597	5 prohibited under Section 1501(a)(27) from being
3598	3598	6 included in the unitary business group because he or
3599	3599	7 she is ordinarily required to apportion business
3600	3600	8 income under different subsections of Section 304, but
3601	3601	9 not to exceed the addition modification required to be
3602	3602	10 made for the same taxable year under Section
3603	3603	11 203(d)(2)(D-7) for interest paid, accrued, or
3604	3604	12 incurred, directly or indirectly, to the same person.
3605	3605	13 This subparagraph (R) is exempt from Section 250;
3606	3606	14 (S) An amount equal to the income from intangible
3607	3607	15 property taken into account for the taxable year (net
3608	3608	16 of the deductions allocable thereto) with respect to
3609	3609	17 transactions with (i) a foreign person who would be a
3610	3610	18 member of the taxpayer's unitary business group but
3611	3611	19 for the fact that the foreign person's business
3612	3612	20 activity outside the United States is 80% or more of
3613	3613	21 that person's total business activity and (ii) for
3614	3614	22 taxable years ending on or after December 31, 2008, to
3615	3615	23 a person who would be a member of the same unitary
3616	3616	24 business group but for the fact that the person is
3617	3617	25 prohibited under Section 1501(a)(27) from being
3618	3618	26 included in the unitary business group because he or
3619	3619
3620	3620
3621	3621
3622	3622
3623	3623
3624	3624	HB1824 - 100 - LRB104 09229 HLH 19286 b
3625	3625
3626	3626
3627	3627	HB1824- 101 -LRB104 09229 HLH 19286 b HB1824 - 101 - LRB104 09229 HLH 19286 b
3628	3628	HB1824 - 101 - LRB104 09229 HLH 19286 b
3629	3629	1 she is ordinarily required to apportion business
3630	3630	2 income under different subsections of Section 304, but
3631	3631	3 not to exceed the addition modification required to be
3632	3632	4 made for the same taxable year under Section
3633	3633	5 203(d)(2)(D-8) for intangible expenses and costs paid,
3634	3634	6 accrued, or incurred, directly or indirectly, to the
3635	3635	7 same person. This subparagraph (S) is exempt from
3636	3636	8 Section 250;
3637	3637	9 (T) For taxable years ending on or after December
3638	3638	10 31, 2011, in the case of a taxpayer who was required to
3639	3639	11 add back any insurance premiums under Section
3640	3640	12 203(d)(2)(D-9), such taxpayer may elect to subtract
3641	3641	13 that part of a reimbursement received from the
3642	3642	14 insurance company equal to the amount of the expense
3643	3643	15 or loss (including expenses incurred by the insurance
3644	3644	16 company) that would have been taken into account as a
3645	3645	17 deduction for federal income tax purposes if the
3646	3646	18 expense or loss had been uninsured. If a taxpayer
3647	3647	19 makes the election provided for by this subparagraph
3648	3648	20 (T), the insurer to which the premiums were paid must
3649	3649	21 add back to income the amount subtracted by the
3650	3650	22 taxpayer pursuant to this subparagraph (T). This
3651	3651	23 subparagraph (T) is exempt from the provisions of
3652	3652	24 Section 250; and
3653	3653	25 (U) For taxable years beginning on or after
3654	3654	26 January 1, 2023, for any cannabis establishment
3655	3655
3656	3656
3657	3657
3658	3658
3659	3659
3660	3660	HB1824 - 101 - LRB104 09229 HLH 19286 b
3661	3661
3662	3662
3663	3663	HB1824- 102 -LRB104 09229 HLH 19286 b HB1824 - 102 - LRB104 09229 HLH 19286 b
3664	3664	HB1824 - 102 - LRB104 09229 HLH 19286 b
3665	3665	1 operating in this State and licensed under the
3666	3666	2 Cannabis Regulation and Tax Act or any cannabis
3667	3667	3 cultivation center or medical cannabis dispensing
3668	3668	4 organization operating in this State and licensed
3669	3669	5 under the Compassionate Use of Medical Cannabis
3670	3670	6 Program Act, an amount equal to the deductions that
3671	3671	7 were disallowed under Section 280E of the Internal
3672	3672	8 Revenue Code for the taxable year and that would not be
3673	3673	9 added back under this subsection. The provisions of
3674	3674	10 this subparagraph (U) are exempt from the provisions
3675	3675	11 of Section 250.
3676	3676	12 (e) Gross income; adjusted gross income; taxable income.
3677	3677	13 (1) In general. Subject to the provisions of paragraph
3678	3678	14 (2) and subsection (b)(3), for purposes of this Section
3679	3679	15 and Section 803(e), a taxpayer's gross income, adjusted
3680	3680	16 gross income, or taxable income for the taxable year shall
3681	3681	17 mean the amount of gross income, adjusted gross income or
3682	3682	18 taxable income properly reportable for federal income tax
3683	3683	19 purposes for the taxable year under the provisions of the
3684	3684	20 Internal Revenue Code. Taxable income may be less than
3685	3685	21 zero. However, for taxable years ending on or after
3686	3686	22 December 31, 1986, net operating loss carryforwards from
3687	3687	23 taxable years ending prior to December 31, 1986, may not
3688	3688	24 exceed the sum of federal taxable income for the taxable
3689	3689	25 year before net operating loss deduction, plus the excess
3690	3690
3691	3691
3692	3692
3693	3693
3694	3694
3695	3695	HB1824 - 102 - LRB104 09229 HLH 19286 b
3696	3696
3697	3697
3698	3698	HB1824- 103 -LRB104 09229 HLH 19286 b HB1824 - 103 - LRB104 09229 HLH 19286 b
3699	3699	HB1824 - 103 - LRB104 09229 HLH 19286 b
3700	3700	1 of addition modifications over subtraction modifications
3701	3701	2 for the taxable year. For taxable years ending prior to
3702	3702	3 December 31, 1986, taxable income may never be an amount
3703	3703	4 in excess of the net operating loss for the taxable year as
3704	3704	5 defined in subsections (c) and (d) of Section 172 of the
3705	3705	6 Internal Revenue Code, provided that when taxable income
3706	3706	7 of a corporation (other than a Subchapter S corporation),
3707	3707	8 trust, or estate is less than zero and addition
3708	3708	9 modifications, other than those provided by subparagraph
3709	3709	10 (E) of paragraph (2) of subsection (b) for corporations or
3710	3710	11 subparagraph (E) of paragraph (2) of subsection (c) for
3711	3711	12 trusts and estates, exceed subtraction modifications, an
3712	3712	13 addition modification must be made under those
3713	3713	14 subparagraphs for any other taxable year to which the
3714	3714	15 taxable income less than zero (net operating loss) is
3715	3715	16 applied under Section 172 of the Internal Revenue Code or
3716	3716	17 under subparagraph (E) of paragraph (2) of this subsection
3717	3717	18 (e) applied in conjunction with Section 172 of the
3718	3718	19 Internal Revenue Code.
3719	3719	20 (2) Special rule. For purposes of paragraph (1) of
3720	3720	21 this subsection, the taxable income properly reportable
3721	3721	22 for federal income tax purposes shall mean:
3722	3722	23 (A) Certain life insurance companies. In the case
3723	3723	24 of a life insurance company subject to the tax imposed
3724	3724	25 by Section 801 of the Internal Revenue Code, life
3725	3725	26 insurance company taxable income, plus the amount of
3726	3726
3727	3727
3728	3728
3729	3729
3730	3730
3731	3731	HB1824 - 103 - LRB104 09229 HLH 19286 b
3732	3732
3733	3733
3734	3734	HB1824- 104 -LRB104 09229 HLH 19286 b HB1824 - 104 - LRB104 09229 HLH 19286 b
3735	3735	HB1824 - 104 - LRB104 09229 HLH 19286 b
3736	3736	1 distribution from pre-1984 policyholder surplus
3737	3737	2 accounts as calculated under Section 815a of the
3738	3738	3 Internal Revenue Code;
3739	3739	4 (B) Certain other insurance companies. In the case
3740	3740	5 of mutual insurance companies subject to the tax
3741	3741	6 imposed by Section 831 of the Internal Revenue Code,
3742	3742	7 insurance company taxable income;
3743	3743	8 (C) Regulated investment companies. In the case of
3744	3744	9 a regulated investment company subject to the tax
3745	3745	10 imposed by Section 852 of the Internal Revenue Code,
3746	3746	11 investment company taxable income;
3747	3747	12 (D) Real estate investment trusts. In the case of
3748	3748	13 a real estate investment trust subject to the tax
3749	3749	14 imposed by Section 857 of the Internal Revenue Code,
3750	3750	15 real estate investment trust taxable income;
3751	3751	16 (E) Consolidated corporations. In the case of a
3752	3752	17 corporation which is a member of an affiliated group
3753	3753	18 of corporations filing a consolidated income tax
3754	3754	19 return for the taxable year for federal income tax
3755	3755	20 purposes, taxable income determined as if such
3756	3756	21 corporation had filed a separate return for federal
3757	3757	22 income tax purposes for the taxable year and each
3758	3758	23 preceding taxable year for which it was a member of an
3759	3759	24 affiliated group. For purposes of this subparagraph,
3760	3760	25 the taxpayer's separate taxable income shall be
3761	3761	26 determined as if the election provided by Section
3762	3762
3763	3763
3764	3764
3765	3765
3766	3766
3767	3767	HB1824 - 104 - LRB104 09229 HLH 19286 b
3768	3768
3769	3769
3770	3770	HB1824- 105 -LRB104 09229 HLH 19286 b HB1824 - 105 - LRB104 09229 HLH 19286 b
3771	3771	HB1824 - 105 - LRB104 09229 HLH 19286 b
3772	3772	1 243(b)(2) of the Internal Revenue Code had been in
3773	3773	2 effect for all such years;
3774	3774	3 (F) Cooperatives. In the case of a cooperative
3775	3775	4 corporation or association, the taxable income of such
3776	3776	5 organization determined in accordance with the
3777	3777	6 provisions of Section 1381 through 1388 of the
3778	3778	7 Internal Revenue Code, but without regard to the
3779	3779	8 prohibition against offsetting losses from patronage
3780	3780	9 activities against income from nonpatronage
3781	3781	10 activities; except that a cooperative corporation or
3782	3782	11 association may make an election to follow its federal
3783	3783	12 income tax treatment of patronage losses and
3784	3784	13 nonpatronage losses. In the event such election is
3785	3785	14 made, such losses shall be computed and carried over
3786	3786	15 in a manner consistent with subsection (a) of Section
3787	3787	16 207 of this Act and apportioned by the apportionment
3788	3788	17 factor reported by the cooperative on its Illinois
3789	3789	18 income tax return filed for the taxable year in which
3790	3790	19 the losses are incurred. The election shall be
3791	3791	20 effective for all taxable years with original returns
3792	3792	21 due on or after the date of the election. In addition,
3793	3793	22 the cooperative may file an amended return or returns,
3794	3794	23 as allowed under this Act, to provide that the
3795	3795	24 election shall be effective for losses incurred or
3796	3796	25 carried forward for taxable years occurring prior to
3797	3797	26 the date of the election. Once made, the election may
3798	3798
3799	3799
3800	3800
3801	3801
3802	3802
3803	3803	HB1824 - 105 - LRB104 09229 HLH 19286 b
3804	3804
3805	3805
3806	3806	HB1824- 106 -LRB104 09229 HLH 19286 b HB1824 - 106 - LRB104 09229 HLH 19286 b
3807	3807	HB1824 - 106 - LRB104 09229 HLH 19286 b
3808	3808	1 only be revoked upon approval of the Director. The
3809	3809	2 Department shall adopt rules setting forth
3810	3810	3 requirements for documenting the elections and any
3811	3811	4 resulting Illinois net loss and the standards to be
3812	3812	5 used by the Director in evaluating requests to revoke
3813	3813	6 elections. Public Act 96-932 is declaratory of
3814	3814	7 existing law;
3815	3815	8 (G) Subchapter S corporations. In the case of: (i)
3816	3816	9 a Subchapter S corporation for which there is in
3817	3817	10 effect an election for the taxable year under Section
3818	3818	11 1362 of the Internal Revenue Code, the taxable income
3819	3819	12 of such corporation determined in accordance with
3820	3820	13 Section 1363(b) of the Internal Revenue Code, except
3821	3821	14 that taxable income shall take into account those
3822	3822	15 items which are required by Section 1363(b)(1) of the
3823	3823	16 Internal Revenue Code to be separately stated; and
3824	3824	17 (ii) a Subchapter S corporation for which there is in
3825	3825	18 effect a federal election to opt out of the provisions
3826	3826	19 of the Subchapter S Revision Act of 1982 and have
3827	3827	20 applied instead the prior federal Subchapter S rules
3828	3828	21 as in effect on July 1, 1982, the taxable income of
3829	3829	22 such corporation determined in accordance with the
3830	3830	23 federal Subchapter S rules as in effect on July 1,
3831	3831	24 1982; and
3832	3832	25 (H) Partnerships. In the case of a partnership,
3833	3833	26 taxable income determined in accordance with Section
3834	3834
3835	3835
3836	3836
3837	3837
3838	3838
3839	3839	HB1824 - 106 - LRB104 09229 HLH 19286 b
3840	3840
3841	3841
3842	3842	HB1824- 107 -LRB104 09229 HLH 19286 b HB1824 - 107 - LRB104 09229 HLH 19286 b
3843	3843	HB1824 - 107 - LRB104 09229 HLH 19286 b
3844	3844	1 703 of the Internal Revenue Code, except that taxable
3845	3845	2 income shall take into account those items which are
3846	3846	3 required by Section 703(a)(1) to be separately stated
3847	3847	4 but which would be taken into account by an individual
3848	3848	5 in calculating his taxable income.
3849	3849	6 (3) Recapture of business expenses on disposition of
3850	3850	7 asset or business. Notwithstanding any other law to the
3851	3851	8 contrary, if in prior years income from an asset or
3852	3852	9 business has been classified as business income and in a
3853	3853	10 later year is demonstrated to be non-business income, then
3854	3854	11 all expenses, without limitation, deducted in such later
3855	3855	12 year and in the 2 immediately preceding taxable years
3856	3856	13 related to that asset or business that generated the
3857	3857	14 non-business income shall be added back and recaptured as
3858	3858	15 business income in the year of the disposition of the
3859	3859	16 asset or business. Such amount shall be apportioned to
3860	3860	17 Illinois using the greater of the apportionment fraction
3861	3861	18 computed for the business under Section 304 of this Act
3862	3862	19 for the taxable year or the average of the apportionment
3863	3863	20 fractions computed for the business under Section 304 of
3864	3864	21 this Act for the taxable year and for the 2 immediately
3865	3865	22 preceding taxable years.
3866	3866	23 (f) Valuation limitation amount.
3867	3867	24 (1) In general. The valuation limitation amount
3868	3868	25 referred to in subsections (a)(2)(G), (c)(2)(I) and
3869	3869
3870	3870
3871	3871
3872	3872
3873	3873
3874	3874	HB1824 - 107 - LRB104 09229 HLH 19286 b
3875	3875
3876	3876
3877	3877	HB1824- 108 -LRB104 09229 HLH 19286 b HB1824 - 108 - LRB104 09229 HLH 19286 b
3878	3878	HB1824 - 108 - LRB104 09229 HLH 19286 b
3879	3879	1 (d)(2)(E) is an amount equal to:
3880	3880	2 (A) The sum of the pre-August 1, 1969 appreciation
3881	3881	3 amounts (to the extent consisting of gain reportable
3882	3882	4 under the provisions of Section 1245 or 1250 of the
3883	3883	5 Internal Revenue Code) for all property in respect of
3884	3884	6 which such gain was reported for the taxable year;
3885	3885	7 plus
3886	3886	8 (B) The lesser of (i) the sum of the pre-August 1,
3887	3887	9 1969 appreciation amounts (to the extent consisting of
3888	3888	10 capital gain) for all property in respect of which
3889	3889	11 such gain was reported for federal income tax purposes
3890	3890	12 for the taxable year, or (ii) the net capital gain for
3891	3891	13 the taxable year, reduced in either case by any amount
3892	3892	14 of such gain included in the amount determined under
3893	3893	15 subsection (a)(2)(F) or (c)(2)(H).
3894	3894	16 (2) Pre-August 1, 1969 appreciation amount.
3895	3895	17 (A) If the fair market value of property referred
3896	3896	18 to in paragraph (1) was readily ascertainable on
3897	3897	19 August 1, 1969, the pre-August 1, 1969 appreciation
3898	3898	20 amount for such property is the lesser of (i) the
3899	3899	21 excess of such fair market value over the taxpayer's
3900	3900	22 basis (for determining gain) for such property on that
3901	3901	23 date (determined under the Internal Revenue Code as in
3902	3902	24 effect on that date), or (ii) the total gain realized
3903	3903	25 and reportable for federal income tax purposes in
3904	3904	26 respect of the sale, exchange or other disposition of
3905	3905
3906	3906
3907	3907
3908	3908
3909	3909
3910	3910	HB1824 - 108 - LRB104 09229 HLH 19286 b
3911	3911
3912	3912
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3914	3914	HB1824 - 109 - LRB104 09229 HLH 19286 b
3915	3915	1 such property.
3916	3916	2 (B) If the fair market value of property referred
3917	3917	3 to in paragraph (1) was not readily ascertainable on
3918	3918	4 August 1, 1969, the pre-August 1, 1969 appreciation
3919	3919	5 amount for such property is that amount which bears
3920	3920	6 the same ratio to the total gain reported in respect of
3921	3921	7 the property for federal income tax purposes for the
3922	3922	8 taxable year, as the number of full calendar months in
3923	3923	9 that part of the taxpayer's holding period for the
3924	3924	10 property ending July 31, 1969 bears to the number of
3925	3925	11 full calendar months in the taxpayer's entire holding
3926	3926	12 period for the property.
3927	3927	13 (C) The Department shall prescribe such
3928	3928	14 regulations as may be necessary to carry out the
3929	3929	15 purposes of this paragraph.
3930	3930	16 (g) Double deductions. Unless specifically provided
3931	3931	17 otherwise, nothing in this Section shall permit the same item
3932	3932	18 to be deducted more than once.
3933	3933	19 (h) Legislative intention. Except as expressly provided by
3934	3934	20 this Section there shall be no modifications or limitations on
3935	3935	21 the amounts of income, gain, loss or deduction taken into
3936	3936	22 account in determining gross income, adjusted gross income or
3937	3937	23 taxable income for federal income tax purposes for the taxable
3938	3938	24 year, or in the amount of such items entering into the
3939	3939
3940	3940
3941	3941
3942	3942
3943	3943
3944	3944	HB1824 - 109 - LRB104 09229 HLH 19286 b
3945	3945
3946	3946
3947	3947	HB1824- 110 -LRB104 09229 HLH 19286 b HB1824 - 110 - LRB104 09229 HLH 19286 b
3948	3948	HB1824 - 110 - LRB104 09229 HLH 19286 b
3949	3949	1 computation of base income and net income under this Act for
3950	3950	2 such taxable year, whether in respect of property values as of
3951	3951	3 August 1, 1969 or otherwise.
3952	3952	4 (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
3953	3953	5 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
3954	3954	6 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; 103-592,
3955	3955	7 Article 10, Section 10-900, eff. 6-7-24; 103-592, Article 170,
3956	3956	8 Section 170-90, eff. 6-7-24; 103-605, eff. 7-1-24; 103-647,
3957	3957	9 eff. 7-1-24; revised 8-20-24.)
3958	3958
3959	3959
3960	3960
3961	3961
3962	3962
3963	3963	HB1824 - 110 - LRB104 09229 HLH 19286 b