Illinois House Bill HB2734 Latest Draft

                            104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB2734 Introduced , by Rep. Christopher "C.D." Davidsmeyer SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 Amends the Illinois Income Tax Act. Creates an income tax deduction for the amount of overtime compensation that is paid to the taxpayer during the taxable year and that is included in the taxpayer's federal adjusted gross income. Effective immediately. LRB104 07408 HLH 17449 b   A BILL FOR 104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB2734 Introduced , by Rep. Christopher "C.D." Davidsmeyer SYNOPSIS AS INTRODUCED:  35 ILCS 5/203 35 ILCS 5/203  Amends the Illinois Income Tax Act. Creates an income tax deduction for the amount of overtime compensation that is paid to the taxpayer during the taxable year and that is included in the taxpayer's federal adjusted gross income. Effective immediately.  LRB104 07408 HLH 17449 b     LRB104 07408 HLH 17449 b   A BILL FOR
104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB2734 Introduced , by Rep. Christopher "C.D." Davidsmeyer SYNOPSIS AS INTRODUCED:
35 ILCS 5/203 35 ILCS 5/203
35 ILCS 5/203
Amends the Illinois Income Tax Act. Creates an income tax deduction for the amount of overtime compensation that is paid to the taxpayer during the taxable year and that is included in the taxpayer's federal adjusted gross income. Effective immediately.
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    LRB104 07408 HLH 17449 b
A BILL FOR
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1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Illinois Income Tax Act is amended by
5  changing Section 203 as follows:
6  (35 ILCS 5/203)
7  Sec. 203. Base income defined.
8  (a) Individuals.
9  (1) In general. In the case of an individual, base
10  income means an amount equal to the taxpayer's adjusted
11  gross income for the taxable year as modified by paragraph
12  (2).
13  (2) Modifications. The adjusted gross income referred
14  to in paragraph (1) shall be modified by adding thereto
15  the sum of the following amounts:
16  (A) An amount equal to all amounts paid or accrued
17  to the taxpayer as interest or dividends during the
18  taxable year to the extent excluded from gross income
19  in the computation of adjusted gross income, except
20  stock dividends of qualified public utilities
21  described in Section 305(e) of the Internal Revenue
22  Code;
23  (B) An amount equal to the amount of tax imposed by

 

104TH GENERAL ASSEMBLY
 State of Illinois
 2025 and 2026 HB2734 Introduced , by Rep. Christopher "C.D." Davidsmeyer SYNOPSIS AS INTRODUCED:
35 ILCS 5/203 35 ILCS 5/203
35 ILCS 5/203
Amends the Illinois Income Tax Act. Creates an income tax deduction for the amount of overtime compensation that is paid to the taxpayer during the taxable year and that is included in the taxpayer's federal adjusted gross income. Effective immediately.
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A BILL FOR

 

 

35 ILCS 5/203



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1  this Act to the extent deducted from gross income in
2  the computation of adjusted gross income for the
3  taxable year;
4  (C) An amount equal to the amount received during
5  the taxable year as a recovery or refund of real
6  property taxes paid with respect to the taxpayer's
7  principal residence under the Revenue Act of 1939 and
8  for which a deduction was previously taken under
9  subparagraph (L) of this paragraph (2) prior to July
10  1, 1991, the retrospective application date of Article
11  4 of Public Act 87-17. In the case of multi-unit or
12  multi-use structures and farm dwellings, the taxes on
13  the taxpayer's principal residence shall be that
14  portion of the total taxes for the entire property
15  which is attributable to such principal residence;
16  (D) An amount equal to the amount of the capital
17  gain deduction allowable under the Internal Revenue
18  Code, to the extent deducted from gross income in the
19  computation of adjusted gross income;
20  (D-5) An amount, to the extent not included in
21  adjusted gross income, equal to the amount of money
22  withdrawn by the taxpayer in the taxable year from a
23  medical care savings account and the interest earned
24  on the account in the taxable year of a withdrawal
25  pursuant to subsection (b) of Section 20 of the
26  Medical Care Savings Account Act or subsection (b) of

 

 

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1  Section 20 of the Medical Care Savings Account Act of
2  2000;
3  (D-10) For taxable years ending after December 31,
4  1997, an amount equal to any eligible remediation
5  costs that the individual deducted in computing
6  adjusted gross income and for which the individual
7  claims a credit under subsection (l) of Section 201;
8  (D-15) For taxable years 2001 and thereafter, an
9  amount equal to the bonus depreciation deduction taken
10  on the taxpayer's federal income tax return for the
11  taxable year under subsection (k) of Section 168 of
12  the Internal Revenue Code;
13  (D-16) If the taxpayer sells, transfers, abandons,
14  or otherwise disposes of property for which the
15  taxpayer was required in any taxable year to make an
16  addition modification under subparagraph (D-15), then
17  an amount equal to the aggregate amount of the
18  deductions taken in all taxable years under
19  subparagraph (Z) with respect to that property.
20  If the taxpayer continues to own property through
21  the last day of the last tax year for which a
22  subtraction is allowed with respect to that property
23  under subparagraph (Z) and for which the taxpayer was
24  allowed in any taxable year to make a subtraction
25  modification under subparagraph (Z), then an amount
26  equal to that subtraction modification.

 

 

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1  The taxpayer is required to make the addition
2  modification under this subparagraph only once with
3  respect to any one piece of property;
4  (D-17) An amount equal to the amount otherwise
5  allowed as a deduction in computing base income for
6  interest paid, accrued, or incurred, directly or
7  indirectly, (i) for taxable years ending on or after
8  December 31, 2004, to a foreign person who would be a
9  member of the same unitary business group but for the
10  fact that foreign person's business activity outside
11  the United States is 80% or more of the foreign
12  person's total business activity and (ii) for taxable
13  years ending on or after December 31, 2008, to a person
14  who would be a member of the same unitary business
15  group but for the fact that the person is prohibited
16  under Section 1501(a)(27) from being included in the
17  unitary business group because he or she is ordinarily
18  required to apportion business income under different
19  subsections of Section 304. The addition modification
20  required by this subparagraph shall be reduced to the
21  extent that dividends were included in base income of
22  the unitary group for the same taxable year and
23  received by the taxpayer or by a member of the
24  taxpayer's unitary business group (including amounts
25  included in gross income under Sections 951 through
26  964 of the Internal Revenue Code and amounts included

 

 

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1  in gross income under Section 78 of the Internal
2  Revenue Code) with respect to the stock of the same
3  person to whom the interest was paid, accrued, or
4  incurred.
5  This paragraph shall not apply to the following:
6  (i) an item of interest paid, accrued, or
7  incurred, directly or indirectly, to a person who
8  is subject in a foreign country or state, other
9  than a state which requires mandatory unitary
10  reporting, to a tax on or measured by net income
11  with respect to such interest; or
12  (ii) an item of interest paid, accrued, or
13  incurred, directly or indirectly, to a person if
14  the taxpayer can establish, based on a
15  preponderance of the evidence, both of the
16  following:
17  (a) the person, during the same taxable
18  year, paid, accrued, or incurred, the interest
19  to a person that is not a related member, and
20  (b) the transaction giving rise to the
21  interest expense between the taxpayer and the
22  person did not have as a principal purpose the
23  avoidance of Illinois income tax, and is paid
24  pursuant to a contract or agreement that
25  reflects an arm's-length interest rate and
26  terms; or

 

 

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1  (iii) the taxpayer can establish, based on
2  clear and convincing evidence, that the interest
3  paid, accrued, or incurred relates to a contract
4  or agreement entered into at arm's-length rates
5  and terms and the principal purpose for the
6  payment is not federal or Illinois tax avoidance;
7  or
8  (iv) an item of interest paid, accrued, or
9  incurred, directly or indirectly, to a person if
10  the taxpayer establishes by clear and convincing
11  evidence that the adjustments are unreasonable; or
12  if the taxpayer and the Director agree in writing
13  to the application or use of an alternative method
14  of apportionment under Section 304(f).
15  Nothing in this subsection shall preclude the
16  Director from making any other adjustment
17  otherwise allowed under Section 404 of this Act
18  for any tax year beginning after the effective
19  date of this amendment provided such adjustment is
20  made pursuant to regulation adopted by the
21  Department and such regulations provide methods
22  and standards by which the Department will utilize
23  its authority under Section 404 of this Act;
24  (D-18) An amount equal to the amount of intangible
25  expenses and costs otherwise allowed as a deduction in
26  computing base income, and that were paid, accrued, or

 

 

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1  incurred, directly or indirectly, (i) for taxable
2  years ending on or after December 31, 2004, to a
3  foreign person who would be a member of the same
4  unitary business group but for the fact that the
5  foreign person's business activity outside the United
6  States is 80% or more of that person's total business
7  activity and (ii) for taxable years ending on or after
8  December 31, 2008, to a person who would be a member of
9  the same unitary business group but for the fact that
10  the person is prohibited under Section 1501(a)(27)
11  from being included in the unitary business group
12  because he or she is ordinarily required to apportion
13  business income under different subsections of Section
14  304. The addition modification required by this
15  subparagraph shall be reduced to the extent that
16  dividends were included in base income of the unitary
17  group for the same taxable year and received by the
18  taxpayer or by a member of the taxpayer's unitary
19  business group (including amounts included in gross
20  income under Sections 951 through 964 of the Internal
21  Revenue Code and amounts included in gross income
22  under Section 78 of the Internal Revenue Code) with
23  respect to the stock of the same person to whom the
24  intangible expenses and costs were directly or
25  indirectly paid, incurred, or accrued. The preceding
26  sentence does not apply to the extent that the same

 

 

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1  dividends caused a reduction to the addition
2  modification required under Section 203(a)(2)(D-17) of
3  this Act. As used in this subparagraph, the term
4  "intangible expenses and costs" includes (1) expenses,
5  losses, and costs for, or related to, the direct or
6  indirect acquisition, use, maintenance or management,
7  ownership, sale, exchange, or any other disposition of
8  intangible property; (2) losses incurred, directly or
9  indirectly, from factoring transactions or discounting
10  transactions; (3) royalty, patent, technical, and
11  copyright fees; (4) licensing fees; and (5) other
12  similar expenses and costs. For purposes of this
13  subparagraph, "intangible property" includes patents,
14  patent applications, trade names, trademarks, service
15  marks, copyrights, mask works, trade secrets, and
16  similar types of intangible assets.
17  This paragraph shall not apply to the following:
18  (i) any item of intangible expenses or costs
19  paid, accrued, or incurred, directly or
20  indirectly, from a transaction with a person who
21  is subject in a foreign country or state, other
22  than a state which requires mandatory unitary
23  reporting, to a tax on or measured by net income
24  with respect to such item; or
25  (ii) any item of intangible expense or cost
26  paid, accrued, or incurred, directly or

 

 

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1  indirectly, if the taxpayer can establish, based
2  on a preponderance of the evidence, both of the
3  following:
4  (a) the person during the same taxable
5  year paid, accrued, or incurred, the
6  intangible expense or cost to a person that is
7  not a related member, and
8  (b) the transaction giving rise to the
9  intangible expense or cost between the
10  taxpayer and the person did not have as a
11  principal purpose the avoidance of Illinois
12  income tax, and is paid pursuant to a contract
13  or agreement that reflects arm's-length terms;
14  or
15  (iii) any item of intangible expense or cost
16  paid, accrued, or incurred, directly or
17  indirectly, from a transaction with a person if
18  the taxpayer establishes by clear and convincing
19  evidence, that the adjustments are unreasonable;
20  or if the taxpayer and the Director agree in
21  writing to the application or use of an
22  alternative method of apportionment under Section
23  304(f);
24  Nothing in this subsection shall preclude the
25  Director from making any other adjustment
26  otherwise allowed under Section 404 of this Act

 

 

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1  for any tax year beginning after the effective
2  date of this amendment provided such adjustment is
3  made pursuant to regulation adopted by the
4  Department and such regulations provide methods
5  and standards by which the Department will utilize
6  its authority under Section 404 of this Act;
7  (D-19) For taxable years ending on or after
8  December 31, 2008, an amount equal to the amount of
9  insurance premium expenses and costs otherwise allowed
10  as a deduction in computing base income, and that were
11  paid, accrued, or incurred, directly or indirectly, to
12  a person who would be a member of the same unitary
13  business group but for the fact that the person is
14  prohibited under Section 1501(a)(27) from being
15  included in the unitary business group because he or
16  she is ordinarily required to apportion business
17  income under different subsections of Section 304. The
18  addition modification required by this subparagraph
19  shall be reduced to the extent that dividends were
20  included in base income of the unitary group for the
21  same taxable year and received by the taxpayer or by a
22  member of the taxpayer's unitary business group
23  (including amounts included in gross income under
24  Sections 951 through 964 of the Internal Revenue Code
25  and amounts included in gross income under Section 78
26  of the Internal Revenue Code) with respect to the

 

 

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1  stock of the same person to whom the premiums and costs
2  were directly or indirectly paid, incurred, or
3  accrued. The preceding sentence does not apply to the
4  extent that the same dividends caused a reduction to
5  the addition modification required under Section
6  203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
7  Act;
8  (D-20) For taxable years beginning on or after
9  January 1, 2002 and ending on or before December 31,
10  2006, in the case of a distribution from a qualified
11  tuition program under Section 529 of the Internal
12  Revenue Code, other than (i) a distribution from a
13  College Savings Pool created under Section 16.5 of the
14  State Treasurer Act or (ii) a distribution from the
15  Illinois Prepaid Tuition Trust Fund, an amount equal
16  to the amount excluded from gross income under Section
17  529(c)(3)(B). For taxable years beginning on or after
18  January 1, 2007, in the case of a distribution from a
19  qualified tuition program under Section 529 of the
20  Internal Revenue Code, other than (i) a distribution
21  from a College Savings Pool created under Section 16.5
22  of the State Treasurer Act, (ii) a distribution from
23  the Illinois Prepaid Tuition Trust Fund, or (iii) a
24  distribution from a qualified tuition program under
25  Section 529 of the Internal Revenue Code that (I)
26  adopts and determines that its offering materials

 

 

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1  comply with the College Savings Plans Network's
2  disclosure principles and (II) has made reasonable
3  efforts to inform in-state residents of the existence
4  of in-state qualified tuition programs by informing
5  Illinois residents directly and, where applicable, to
6  inform financial intermediaries distributing the
7  program to inform in-state residents of the existence
8  of in-state qualified tuition programs at least
9  annually, an amount equal to the amount excluded from
10  gross income under Section 529(c)(3)(B).
11  For the purposes of this subparagraph (D-20), a
12  qualified tuition program has made reasonable efforts
13  if it makes disclosures (which may use the term
14  "in-state program" or "in-state plan" and need not
15  specifically refer to Illinois or its qualified
16  programs by name) (i) directly to prospective
17  participants in its offering materials or makes a
18  public disclosure, such as a website posting; and (ii)
19  where applicable, to intermediaries selling the
20  out-of-state program in the same manner that the
21  out-of-state program distributes its offering
22  materials;
23  (D-20.5) For taxable years beginning on or after
24  January 1, 2018, in the case of a distribution from a
25  qualified ABLE program under Section 529A of the
26  Internal Revenue Code, other than a distribution from

 

 

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1  a qualified ABLE program created under Section 16.6 of
2  the State Treasurer Act, an amount equal to the amount
3  excluded from gross income under Section 529A(c)(1)(B)
4  of the Internal Revenue Code;
5  (D-21) For taxable years beginning on or after
6  January 1, 2007, in the case of transfer of moneys from
7  a qualified tuition program under Section 529 of the
8  Internal Revenue Code that is administered by the
9  State to an out-of-state program, an amount equal to
10  the amount of moneys previously deducted from base
11  income under subsection (a)(2)(Y) of this Section;
12  (D-21.5) For taxable years beginning on or after
13  January 1, 2018, in the case of the transfer of moneys
14  from a qualified tuition program under Section 529 or
15  a qualified ABLE program under Section 529A of the
16  Internal Revenue Code that is administered by this
17  State to an ABLE account established under an
18  out-of-state ABLE account program, an amount equal to
19  the contribution component of the transferred amount
20  that was previously deducted from base income under
21  subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
22  Section;
23  (D-22) For taxable years beginning on or after
24  January 1, 2009, and prior to January 1, 2018, in the
25  case of a nonqualified withdrawal or refund of moneys
26  from a qualified tuition program under Section 529 of

 

 

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1  the Internal Revenue Code administered by the State
2  that is not used for qualified expenses at an eligible
3  education institution, an amount equal to the
4  contribution component of the nonqualified withdrawal
5  or refund that was previously deducted from base
6  income under subsection (a)(2)(y) of this Section,
7  provided that the withdrawal or refund did not result
8  from the beneficiary's death or disability. For
9  taxable years beginning on or after January 1, 2018:
10  (1) in the case of a nonqualified withdrawal or
11  refund, as defined under Section 16.5 of the State
12  Treasurer Act, of moneys from a qualified tuition
13  program under Section 529 of the Internal Revenue Code
14  administered by the State, an amount equal to the
15  contribution component of the nonqualified withdrawal
16  or refund that was previously deducted from base
17  income under subsection (a)(2)(Y) of this Section, and
18  (2) in the case of a nonqualified withdrawal or refund
19  from a qualified ABLE program under Section 529A of
20  the Internal Revenue Code administered by the State
21  that is not used for qualified disability expenses, an
22  amount equal to the contribution component of the
23  nonqualified withdrawal or refund that was previously
24  deducted from base income under subsection (a)(2)(HH)
25  of this Section;
26  (D-23) An amount equal to the credit allowable to

 

 

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1  the taxpayer under Section 218(a) of this Act,
2  determined without regard to Section 218(c) of this
3  Act;
4  (D-24) For taxable years ending on or after
5  December 31, 2017, an amount equal to the deduction
6  allowed under Section 199 of the Internal Revenue Code
7  for the taxable year;
8  (D-25) In the case of a resident, an amount equal
9  to the amount of tax for which a credit is allowed
10  pursuant to Section 201(p)(7) of this Act;
11  and by deducting from the total so obtained the sum of the
12  following amounts:
13  (E) For taxable years ending before December 31,
14  2001, any amount included in such total in respect of
15  any compensation (including but not limited to any
16  compensation paid or accrued to a serviceman while a
17  prisoner of war or missing in action) paid to a
18  resident by reason of being on active duty in the Armed
19  Forces of the United States and in respect of any
20  compensation paid or accrued to a resident who as a
21  governmental employee was a prisoner of war or missing
22  in action, and in respect of any compensation paid to a
23  resident in 1971 or thereafter for annual training
24  performed pursuant to Sections 502 and 503, Title 32,
25  United States Code as a member of the Illinois
26  National Guard or, beginning with taxable years ending

 

 

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1  on or after December 31, 2007, the National Guard of
2  any other state. For taxable years ending on or after
3  December 31, 2001, any amount included in such total
4  in respect of any compensation (including but not
5  limited to any compensation paid or accrued to a
6  serviceman while a prisoner of war or missing in
7  action) paid to a resident by reason of being a member
8  of any component of the Armed Forces of the United
9  States and in respect of any compensation paid or
10  accrued to a resident who as a governmental employee
11  was a prisoner of war or missing in action, and in
12  respect of any compensation paid to a resident in 2001
13  or thereafter by reason of being a member of the
14  Illinois National Guard or, beginning with taxable
15  years ending on or after December 31, 2007, the
16  National Guard of any other state. The provisions of
17  this subparagraph (E) are exempt from the provisions
18  of Section 250;
19  (F) An amount equal to all amounts included in
20  such total pursuant to the provisions of Sections
21  402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
22  408 of the Internal Revenue Code, or included in such
23  total as distributions under the provisions of any
24  retirement or disability plan for employees of any
25  governmental agency or unit, or retirement payments to
26  retired partners, which payments are excluded in

 

 

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1  computing net earnings from self employment by Section
2  1402 of the Internal Revenue Code and regulations
3  adopted pursuant thereto;
4  (G) The valuation limitation amount;
5  (H) An amount equal to the amount of any tax
6  imposed by this Act which was refunded to the taxpayer
7  and included in such total for the taxable year;
8  (I) An amount equal to all amounts included in
9  such total pursuant to the provisions of Section 111
10  of the Internal Revenue Code as a recovery of items
11  previously deducted from adjusted gross income in the
12  computation of taxable income;
13  (J) An amount equal to those dividends included in
14  such total which were paid by a corporation which
15  conducts business operations in a River Edge
16  Redevelopment Zone or zones created under the River
17  Edge Redevelopment Zone Act, and conducts
18  substantially all of its operations in a River Edge
19  Redevelopment Zone or zones. This subparagraph (J) is
20  exempt from the provisions of Section 250;
21  (K) An amount equal to those dividends included in
22  such total that were paid by a corporation that
23  conducts business operations in a federally designated
24  Foreign Trade Zone or Sub-Zone and that is designated
25  a High Impact Business located in Illinois; provided
26  that dividends eligible for the deduction provided in

 

 

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1  subparagraph (J) of paragraph (2) of this subsection
2  shall not be eligible for the deduction provided under
3  this subparagraph (K);
4  (L) For taxable years ending after December 31,
5  1983, an amount equal to all social security benefits
6  and railroad retirement benefits included in such
7  total pursuant to Sections 72(r) and 86 of the
8  Internal Revenue Code;
9  (M) With the exception of any amounts subtracted
10  under subparagraph (N), an amount equal to the sum of
11  all amounts disallowed as deductions by (i) Sections
12  171(a)(2) and 265(a)(2) of the Internal Revenue Code,
13  and all amounts of expenses allocable to interest and
14  disallowed as deductions by Section 265(a)(1) of the
15  Internal Revenue Code; and (ii) for taxable years
16  ending on or after August 13, 1999, Sections
17  171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
18  Internal Revenue Code, plus, for taxable years ending
19  on or after December 31, 2011, Section 45G(e)(3) of
20  the Internal Revenue Code and, for taxable years
21  ending on or after December 31, 2008, any amount
22  included in gross income under Section 87 of the
23  Internal Revenue Code; the provisions of this
24  subparagraph are exempt from the provisions of Section
25  250;
26  (N) An amount equal to all amounts included in

 

 

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1  such total which are exempt from taxation by this
2  State either by reason of its statutes or Constitution
3  or by reason of the Constitution, treaties or statutes
4  of the United States; provided that, in the case of any
5  statute of this State that exempts income derived from
6  bonds or other obligations from the tax imposed under
7  this Act, the amount exempted shall be the interest
8  net of bond premium amortization;
9  (O) An amount equal to any contribution made to a
10  job training project established pursuant to the Tax
11  Increment Allocation Redevelopment Act;
12  (P) An amount equal to the amount of the deduction
13  used to compute the federal income tax credit for
14  restoration of substantial amounts held under claim of
15  right for the taxable year pursuant to Section 1341 of
16  the Internal Revenue Code or of any itemized deduction
17  taken from adjusted gross income in the computation of
18  taxable income for restoration of substantial amounts
19  held under claim of right for the taxable year;
20  (Q) An amount equal to any amounts included in
21  such total, received by the taxpayer as an
22  acceleration in the payment of life, endowment or
23  annuity benefits in advance of the time they would
24  otherwise be payable as an indemnity for a terminal
25  illness;
26  (R) An amount equal to the amount of any federal or

 

 

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1  State bonus paid to veterans of the Persian Gulf War;
2  (S) An amount, to the extent included in adjusted
3  gross income, equal to the amount of a contribution
4  made in the taxable year on behalf of the taxpayer to a
5  medical care savings account established under the
6  Medical Care Savings Account Act or the Medical Care
7  Savings Account Act of 2000 to the extent the
8  contribution is accepted by the account administrator
9  as provided in that Act;
10  (T) An amount, to the extent included in adjusted
11  gross income, equal to the amount of interest earned
12  in the taxable year on a medical care savings account
13  established under the Medical Care Savings Account Act
14  or the Medical Care Savings Account Act of 2000 on
15  behalf of the taxpayer, other than interest added
16  pursuant to item (D-5) of this paragraph (2);
17  (U) For one taxable year beginning on or after
18  January 1, 1994, an amount equal to the total amount of
19  tax imposed and paid under subsections (a) and (b) of
20  Section 201 of this Act on grant amounts received by
21  the taxpayer under the Nursing Home Grant Assistance
22  Act during the taxpayer's taxable years 1992 and 1993;
23  (V) Beginning with tax years ending on or after
24  December 31, 1995 and ending with tax years ending on
25  or before December 31, 2004, an amount equal to the
26  amount paid by a taxpayer who is a self-employed

 

 

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1  taxpayer, a partner of a partnership, or a shareholder
2  in a Subchapter S corporation for health insurance or
3  long-term care insurance for that taxpayer or that
4  taxpayer's spouse or dependents, to the extent that
5  the amount paid for that health insurance or long-term
6  care insurance may be deducted under Section 213 of
7  the Internal Revenue Code, has not been deducted on
8  the federal income tax return of the taxpayer, and
9  does not exceed the taxable income attributable to
10  that taxpayer's income, self-employment income, or
11  Subchapter S corporation income; except that no
12  deduction shall be allowed under this item (V) if the
13  taxpayer is eligible to participate in any health
14  insurance or long-term care insurance plan of an
15  employer of the taxpayer or the taxpayer's spouse. The
16  amount of the health insurance and long-term care
17  insurance subtracted under this item (V) shall be
18  determined by multiplying total health insurance and
19  long-term care insurance premiums paid by the taxpayer
20  times a number that represents the fractional
21  percentage of eligible medical expenses under Section
22  213 of the Internal Revenue Code of 1986 not actually
23  deducted on the taxpayer's federal income tax return;
24  (W) For taxable years beginning on or after
25  January 1, 1998, all amounts included in the
26  taxpayer's federal gross income in the taxable year

 

 

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1  from amounts converted from a regular IRA to a Roth
2  IRA. This paragraph is exempt from the provisions of
3  Section 250;
4  (X) For taxable year 1999 and thereafter, an
5  amount equal to the amount of any (i) distributions,
6  to the extent includible in gross income for federal
7  income tax purposes, made to the taxpayer because of
8  his or her status as a victim of persecution for racial
9  or religious reasons by Nazi Germany or any other Axis
10  regime or as an heir of the victim and (ii) items of
11  income, to the extent includible in gross income for
12  federal income tax purposes, attributable to, derived
13  from or in any way related to assets stolen from,
14  hidden from, or otherwise lost to a victim of
15  persecution for racial or religious reasons by Nazi
16  Germany or any other Axis regime immediately prior to,
17  during, and immediately after World War II, including,
18  but not limited to, interest on the proceeds
19  receivable as insurance under policies issued to a
20  victim of persecution for racial or religious reasons
21  by Nazi Germany or any other Axis regime by European
22  insurance companies immediately prior to and during
23  World War II; provided, however, this subtraction from
24  federal adjusted gross income does not apply to assets
25  acquired with such assets or with the proceeds from
26  the sale of such assets; provided, further, this

 

 

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1  paragraph shall only apply to a taxpayer who was the
2  first recipient of such assets after their recovery
3  and who is a victim of persecution for racial or
4  religious reasons by Nazi Germany or any other Axis
5  regime or as an heir of the victim. The amount of and
6  the eligibility for any public assistance, benefit, or
7  similar entitlement is not affected by the inclusion
8  of items (i) and (ii) of this paragraph in gross income
9  for federal income tax purposes. This paragraph is
10  exempt from the provisions of Section 250;
11  (Y) For taxable years beginning on or after
12  January 1, 2002 and ending on or before December 31,
13  2004, moneys contributed in the taxable year to a
14  College Savings Pool account under Section 16.5 of the
15  State Treasurer Act, except that amounts excluded from
16  gross income under Section 529(c)(3)(C)(i) of the
17  Internal Revenue Code shall not be considered moneys
18  contributed under this subparagraph (Y). For taxable
19  years beginning on or after January 1, 2005, a maximum
20  of $10,000 contributed in the taxable year to (i) a
21  College Savings Pool account under Section 16.5 of the
22  State Treasurer Act or (ii) the Illinois Prepaid
23  Tuition Trust Fund, except that amounts excluded from
24  gross income under Section 529(c)(3)(C)(i) of the
25  Internal Revenue Code shall not be considered moneys
26  contributed under this subparagraph (Y). For purposes

 

 

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1  of this subparagraph, contributions made by an
2  employer on behalf of an employee, or matching
3  contributions made by an employee, shall be treated as
4  made by the employee. This subparagraph (Y) is exempt
5  from the provisions of Section 250;
6  (Z) For taxable years 2001 and thereafter, for the
7  taxable year in which the bonus depreciation deduction
8  is taken on the taxpayer's federal income tax return
9  under subsection (k) of Section 168 of the Internal
10  Revenue Code and for each applicable taxable year
11  thereafter, an amount equal to "x", where:
12  (1) "y" equals the amount of the depreciation
13  deduction taken for the taxable year on the
14  taxpayer's federal income tax return on property
15  for which the bonus depreciation deduction was
16  taken in any year under subsection (k) of Section
17  168 of the Internal Revenue Code, but not
18  including the bonus depreciation deduction;
19  (2) for taxable years ending on or before
20  December 31, 2005, "x" equals "y" multiplied by 30
21  and then divided by 70 (or "y" multiplied by
22  0.429); and
23  (3) for taxable years ending after December
24  31, 2005:
25  (i) for property on which a bonus
26  depreciation deduction of 30% of the adjusted

 

 

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1  basis was taken, "x" equals "y" multiplied by
2  30 and then divided by 70 (or "y" multiplied
3  by 0.429);
4  (ii) for property on which a bonus
5  depreciation deduction of 50% of the adjusted
6  basis was taken, "x" equals "y" multiplied by
7  1.0;
8  (iii) for property on which a bonus
9  depreciation deduction of 100% of the adjusted
10  basis was taken in a taxable year ending on or
11  after December 31, 2021, "x" equals the
12  depreciation deduction that would be allowed
13  on that property if the taxpayer had made the
14  election under Section 168(k)(7) of the
15  Internal Revenue Code to not claim bonus
16  depreciation on that property; and
17  (iv) for property on which a bonus
18  depreciation deduction of a percentage other
19  than 30%, 50% or 100% of the adjusted basis
20  was taken in a taxable year ending on or after
21  December 31, 2021, "x" equals "y" multiplied
22  by 100 times the percentage bonus depreciation
23  on the property (that is, 100(bonus%)) and
24  then divided by 100 times 1 minus the
25  percentage bonus depreciation on the property
26  (that is, 100(1-bonus%)).

 

 

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1  The aggregate amount deducted under this
2  subparagraph in all taxable years for any one piece of
3  property may not exceed the amount of the bonus
4  depreciation deduction taken on that property on the
5  taxpayer's federal income tax return under subsection
6  (k) of Section 168 of the Internal Revenue Code. This
7  subparagraph (Z) is exempt from the provisions of
8  Section 250;
9  (AA) If the taxpayer sells, transfers, abandons,
10  or otherwise disposes of property for which the
11  taxpayer was required in any taxable year to make an
12  addition modification under subparagraph (D-15), then
13  an amount equal to that addition modification.
14  If the taxpayer continues to own property through
15  the last day of the last tax year for which a
16  subtraction is allowed with respect to that property
17  under subparagraph (Z) and for which the taxpayer was
18  required in any taxable year to make an addition
19  modification under subparagraph (D-15), then an amount
20  equal to that addition modification.
21  The taxpayer is allowed to take the deduction
22  under this subparagraph only once with respect to any
23  one piece of property.
24  This subparagraph (AA) is exempt from the
25  provisions of Section 250;
26  (BB) Any amount included in adjusted gross income,

 

 

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1  other than salary, received by a driver in a
2  ridesharing arrangement using a motor vehicle;
3  (CC) The amount of (i) any interest income (net of
4  the deductions allocable thereto) taken into account
5  for the taxable year with respect to a transaction
6  with a taxpayer that is required to make an addition
7  modification with respect to such transaction under
8  Section 203(a)(2)(D-17), 203(b)(2)(E-12),
9  203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
10  the amount of that addition modification, and (ii) any
11  income from intangible property (net of the deductions
12  allocable thereto) taken into account for the taxable
13  year with respect to a transaction with a taxpayer
14  that is required to make an addition modification with
15  respect to such transaction under Section
16  203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
17  203(d)(2)(D-8), but not to exceed the amount of that
18  addition modification. This subparagraph (CC) is
19  exempt from the provisions of Section 250;
20  (DD) An amount equal to the interest income taken
21  into account for the taxable year (net of the
22  deductions allocable thereto) with respect to
23  transactions with (i) a foreign person who would be a
24  member of the taxpayer's unitary business group but
25  for the fact that the foreign person's business
26  activity outside the United States is 80% or more of

 

 

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1  that person's total business activity and (ii) for
2  taxable years ending on or after December 31, 2008, to
3  a person who would be a member of the same unitary
4  business group but for the fact that the person is
5  prohibited under Section 1501(a)(27) from being
6  included in the unitary business group because he or
7  she is ordinarily required to apportion business
8  income under different subsections of Section 304, but
9  not to exceed the addition modification required to be
10  made for the same taxable year under Section
11  203(a)(2)(D-17) for interest paid, accrued, or
12  incurred, directly or indirectly, to the same person.
13  This subparagraph (DD) is exempt from the provisions
14  of Section 250;
15  (EE) An amount equal to the income from intangible
16  property taken into account for the taxable year (net
17  of the deductions allocable thereto) with respect to
18  transactions with (i) a foreign person who would be a
19  member of the taxpayer's unitary business group but
20  for the fact that the foreign person's business
21  activity outside the United States is 80% or more of
22  that person's total business activity and (ii) for
23  taxable years ending on or after December 31, 2008, to
24  a person who would be a member of the same unitary
25  business group but for the fact that the person is
26  prohibited under Section 1501(a)(27) from being

 

 

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1  included in the unitary business group because he or
2  she is ordinarily required to apportion business
3  income under different subsections of Section 304, but
4  not to exceed the addition modification required to be
5  made for the same taxable year under Section
6  203(a)(2)(D-18) for intangible expenses and costs
7  paid, accrued, or incurred, directly or indirectly, to
8  the same foreign person. This subparagraph (EE) is
9  exempt from the provisions of Section 250;
10  (FF) An amount equal to any amount awarded to the
11  taxpayer during the taxable year by the Court of
12  Claims under subsection (c) of Section 8 of the Court
13  of Claims Act for time unjustly served in a State
14  prison. This subparagraph (FF) is exempt from the
15  provisions of Section 250;
16  (GG) For taxable years ending on or after December
17  31, 2011, in the case of a taxpayer who was required to
18  add back any insurance premiums under Section
19  203(a)(2)(D-19), such taxpayer may elect to subtract
20  that part of a reimbursement received from the
21  insurance company equal to the amount of the expense
22  or loss (including expenses incurred by the insurance
23  company) that would have been taken into account as a
24  deduction for federal income tax purposes if the
25  expense or loss had been uninsured. If a taxpayer
26  makes the election provided for by this subparagraph

 

 

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1  (GG), the insurer to which the premiums were paid must
2  add back to income the amount subtracted by the
3  taxpayer pursuant to this subparagraph (GG). This
4  subparagraph (GG) is exempt from the provisions of
5  Section 250;
6  (HH) For taxable years beginning on or after
7  January 1, 2018 and prior to January 1, 2028, a maximum
8  of $10,000 contributed in the taxable year to a
9  qualified ABLE account under Section 16.6 of the State
10  Treasurer Act, except that amounts excluded from gross
11  income under Section 529(c)(3)(C)(i) or Section
12  529A(c)(1)(C) of the Internal Revenue Code shall not
13  be considered moneys contributed under this
14  subparagraph (HH). For purposes of this subparagraph
15  (HH), contributions made by an employer on behalf of
16  an employee, or matching contributions made by an
17  employee, shall be treated as made by the employee;
18  (II) For taxable years that begin on or after
19  January 1, 2021 and begin before January 1, 2026, the
20  amount that is included in the taxpayer's federal
21  adjusted gross income pursuant to Section 61 of the
22  Internal Revenue Code as discharge of indebtedness
23  attributable to student loan forgiveness and that is
24  not excluded from the taxpayer's federal adjusted
25  gross income pursuant to paragraph (5) of subsection
26  (f) of Section 108 of the Internal Revenue Code;

 

 

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1  (JJ) For taxable years beginning on or after
2  January 1, 2023, for any cannabis establishment
3  operating in this State and licensed under the
4  Cannabis Regulation and Tax Act or any cannabis
5  cultivation center or medical cannabis dispensing
6  organization operating in this State and licensed
7  under the Compassionate Use of Medical Cannabis
8  Program Act, an amount equal to the deductions that
9  were disallowed under Section 280E of the Internal
10  Revenue Code for the taxable year and that would not be
11  added back under this subsection. The provisions of
12  this subparagraph (JJ) are exempt from the provisions
13  of Section 250; and
14  (KK) To the extent includible in gross income for
15  federal income tax purposes, any amount awarded or
16  paid to the taxpayer as a result of a judgment or
17  settlement for fertility fraud as provided in Section
18  15 of the Illinois Fertility Fraud Act, donor
19  fertility fraud as provided in Section 20 of the
20  Illinois Fertility Fraud Act, or similar action in
21  another state; and
22  (LL) For taxable years beginning on or after
23  January 1, 2026, if the taxpayer is a qualified
24  worker, as defined in the Workforce Development
25  through Charitable Loan Repayment Act, an amount equal
26  to the amount included in the taxpayer's federal

 

 

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1  adjusted gross income that is attributable to student
2  loan repayment assistance received by the taxpayer
3  during the taxable year from a qualified community
4  foundation under the provisions of the Workforce
5  Development through Through Charitable Loan Repayment
6  Act.
7  This subparagraph (LL) is exempt from the
8  provisions of Section 250; .
9  (MM) (LL) For taxable years beginning on or after
10  January 1, 2025, if the taxpayer is an eligible
11  resident as defined in the Medical Debt Relief Act, an
12  amount equal to the amount included in the taxpayer's
13  federal adjusted gross income that is attributable to
14  medical debt relief received by the taxpayer during
15  the taxable year from a nonprofit medical debt relief
16  coordinator under the provisions of the Medical Debt
17  Relief Act. This subparagraph (MM) (LL) is exempt from
18  the provisions of Section 250; and .
19  (NN) For taxable years beginning on or after
20  January 1, 2026, an amount equal to the amount of
21  overtime compensation that is paid to the taxpayer
22  during the taxable year and that is included in the
23  taxpayer's federal adjusted gross income; as used in
24  this subparagraph (NN), "overtime compensation" has
25  the meaning given to that term in the federal Fair
26  Labor Standards Act; this subparagraph (NN) is exempt

 

 

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1  from the provisions of Section 250.
2  (b) Corporations.
3  (1) In general. In the case of a corporation, base
4  income means an amount equal to the taxpayer's taxable
5  income for the taxable year as modified by paragraph (2).
6  (2) Modifications. The taxable income referred to in
7  paragraph (1) shall be modified by adding thereto the sum
8  of the following amounts:
9  (A) An amount equal to all amounts paid or accrued
10  to the taxpayer as interest and all distributions
11  received from regulated investment companies during
12  the taxable year to the extent excluded from gross
13  income in the computation of taxable income;
14  (B) An amount equal to the amount of tax imposed by
15  this Act to the extent deducted from gross income in
16  the computation of taxable income for the taxable
17  year;
18  (C) In the case of a regulated investment company,
19  an amount equal to the excess of (i) the net long-term
20  capital gain for the taxable year, over (ii) the
21  amount of the capital gain dividends designated as
22  such in accordance with Section 852(b)(3)(C) of the
23  Internal Revenue Code and any amount designated under
24  Section 852(b)(3)(D) of the Internal Revenue Code,
25  attributable to the taxable year (this amendatory Act

 

 

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1  of 1995 (Public Act 89-89) is declarative of existing
2  law and is not a new enactment);
3  (D) The amount of any net operating loss deduction
4  taken in arriving at taxable income, other than a net
5  operating loss carried forward from a taxable year
6  ending prior to December 31, 1986;
7  (E) For taxable years in which a net operating
8  loss carryback or carryforward from a taxable year
9  ending prior to December 31, 1986 is an element of
10  taxable income under paragraph (1) of subsection (e)
11  or subparagraph (E) of paragraph (2) of subsection
12  (e), the amount by which addition modifications other
13  than those provided by this subparagraph (E) exceeded
14  subtraction modifications in such earlier taxable
15  year, with the following limitations applied in the
16  order that they are listed:
17  (i) the addition modification relating to the
18  net operating loss carried back or forward to the
19  taxable year from any taxable year ending prior to
20  December 31, 1986 shall be reduced by the amount
21  of addition modification under this subparagraph
22  (E) which related to that net operating loss and
23  which was taken into account in calculating the
24  base income of an earlier taxable year, and
25  (ii) the addition modification relating to the
26  net operating loss carried back or forward to the

 

 

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1  taxable year from any taxable year ending prior to
2  December 31, 1986 shall not exceed the amount of
3  such carryback or carryforward;
4  For taxable years in which there is a net
5  operating loss carryback or carryforward from more
6  than one other taxable year ending prior to December
7  31, 1986, the addition modification provided in this
8  subparagraph (E) shall be the sum of the amounts
9  computed independently under the preceding provisions
10  of this subparagraph (E) for each such taxable year;
11  (E-5) For taxable years ending after December 31,
12  1997, an amount equal to any eligible remediation
13  costs that the corporation deducted in computing
14  adjusted gross income and for which the corporation
15  claims a credit under subsection (l) of Section 201;
16  (E-10) For taxable years 2001 and thereafter, an
17  amount equal to the bonus depreciation deduction taken
18  on the taxpayer's federal income tax return for the
19  taxable year under subsection (k) of Section 168 of
20  the Internal Revenue Code;
21  (E-11) If the taxpayer sells, transfers, abandons,
22  or otherwise disposes of property for which the
23  taxpayer was required in any taxable year to make an
24  addition modification under subparagraph (E-10), then
25  an amount equal to the aggregate amount of the
26  deductions taken in all taxable years under

 

 

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1  subparagraph (T) with respect to that property.
2  If the taxpayer continues to own property through
3  the last day of the last tax year for which a
4  subtraction is allowed with respect to that property
5  under subparagraph (T) and for which the taxpayer was
6  allowed in any taxable year to make a subtraction
7  modification under subparagraph (T), then an amount
8  equal to that subtraction modification.
9  The taxpayer is required to make the addition
10  modification under this subparagraph only once with
11  respect to any one piece of property;
12  (E-12) An amount equal to the amount otherwise
13  allowed as a deduction in computing base income for
14  interest paid, accrued, or incurred, directly or
15  indirectly, (i) for taxable years ending on or after
16  December 31, 2004, to a foreign person who would be a
17  member of the same unitary business group but for the
18  fact the foreign person's business activity outside
19  the United States is 80% or more of the foreign
20  person's total business activity and (ii) for taxable
21  years ending on or after December 31, 2008, to a person
22  who would be a member of the same unitary business
23  group but for the fact that the person is prohibited
24  under Section 1501(a)(27) from being included in the
25  unitary business group because he or she is ordinarily
26  required to apportion business income under different

 

 

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1  subsections of Section 304. The addition modification
2  required by this subparagraph shall be reduced to the
3  extent that dividends were included in base income of
4  the unitary group for the same taxable year and
5  received by the taxpayer or by a member of the
6  taxpayer's unitary business group (including amounts
7  included in gross income pursuant to Sections 951
8  through 964 of the Internal Revenue Code and amounts
9  included in gross income under Section 78 of the
10  Internal Revenue Code) with respect to the stock of
11  the same person to whom the interest was paid,
12  accrued, or incurred.
13  This paragraph shall not apply to the following:
14  (i) an item of interest paid, accrued, or
15  incurred, directly or indirectly, to a person who
16  is subject in a foreign country or state, other
17  than a state which requires mandatory unitary
18  reporting, to a tax on or measured by net income
19  with respect to such interest; or
20  (ii) an item of interest paid, accrued, or
21  incurred, directly or indirectly, to a person if
22  the taxpayer can establish, based on a
23  preponderance of the evidence, both of the
24  following:
25  (a) the person, during the same taxable
26  year, paid, accrued, or incurred, the interest

 

 

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1  to a person that is not a related member, and
2  (b) the transaction giving rise to the
3  interest expense between the taxpayer and the
4  person did not have as a principal purpose the
5  avoidance of Illinois income tax, and is paid
6  pursuant to a contract or agreement that
7  reflects an arm's-length interest rate and
8  terms; or
9  (iii) the taxpayer can establish, based on
10  clear and convincing evidence, that the interest
11  paid, accrued, or incurred relates to a contract
12  or agreement entered into at arm's-length rates
13  and terms and the principal purpose for the
14  payment is not federal or Illinois tax avoidance;
15  or
16  (iv) an item of interest paid, accrued, or
17  incurred, directly or indirectly, to a person if
18  the taxpayer establishes by clear and convincing
19  evidence that the adjustments are unreasonable; or
20  if the taxpayer and the Director agree in writing
21  to the application or use of an alternative method
22  of apportionment under Section 304(f).
23  Nothing in this subsection shall preclude the
24  Director from making any other adjustment
25  otherwise allowed under Section 404 of this Act
26  for any tax year beginning after the effective

 

 

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1  date of this amendment provided such adjustment is
2  made pursuant to regulation adopted by the
3  Department and such regulations provide methods
4  and standards by which the Department will utilize
5  its authority under Section 404 of this Act;
6  (E-13) An amount equal to the amount of intangible
7  expenses and costs otherwise allowed as a deduction in
8  computing base income, and that were paid, accrued, or
9  incurred, directly or indirectly, (i) for taxable
10  years ending on or after December 31, 2004, to a
11  foreign person who would be a member of the same
12  unitary business group but for the fact that the
13  foreign person's business activity outside the United
14  States is 80% or more of that person's total business
15  activity and (ii) for taxable years ending on or after
16  December 31, 2008, to a person who would be a member of
17  the same unitary business group but for the fact that
18  the person is prohibited under Section 1501(a)(27)
19  from being included in the unitary business group
20  because he or she is ordinarily required to apportion
21  business income under different subsections of Section
22  304. The addition modification required by this
23  subparagraph shall be reduced to the extent that
24  dividends were included in base income of the unitary
25  group for the same taxable year and received by the
26  taxpayer or by a member of the taxpayer's unitary

 

 

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1  business group (including amounts included in gross
2  income pursuant to Sections 951 through 964 of the
3  Internal Revenue Code and amounts included in gross
4  income under Section 78 of the Internal Revenue Code)
5  with respect to the stock of the same person to whom
6  the intangible expenses and costs were directly or
7  indirectly paid, incurred, or accrued. The preceding
8  sentence shall not apply to the extent that the same
9  dividends caused a reduction to the addition
10  modification required under Section 203(b)(2)(E-12) of
11  this Act. As used in this subparagraph, the term
12  "intangible expenses and costs" includes (1) expenses,
13  losses, and costs for, or related to, the direct or
14  indirect acquisition, use, maintenance or management,
15  ownership, sale, exchange, or any other disposition of
16  intangible property; (2) losses incurred, directly or
17  indirectly, from factoring transactions or discounting
18  transactions; (3) royalty, patent, technical, and
19  copyright fees; (4) licensing fees; and (5) other
20  similar expenses and costs. For purposes of this
21  subparagraph, "intangible property" includes patents,
22  patent applications, trade names, trademarks, service
23  marks, copyrights, mask works, trade secrets, and
24  similar types of intangible assets.
25  This paragraph shall not apply to the following:
26  (i) any item of intangible expenses or costs

 

 

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1  paid, accrued, or incurred, directly or
2  indirectly, from a transaction with a person who
3  is subject in a foreign country or state, other
4  than a state which requires mandatory unitary
5  reporting, to a tax on or measured by net income
6  with respect to such item; or
7  (ii) any item of intangible expense or cost
8  paid, accrued, or incurred, directly or
9  indirectly, if the taxpayer can establish, based
10  on a preponderance of the evidence, both of the
11  following:
12  (a) the person during the same taxable
13  year paid, accrued, or incurred, the
14  intangible expense or cost to a person that is
15  not a related member, and
16  (b) the transaction giving rise to the
17  intangible expense or cost between the
18  taxpayer and the person did not have as a
19  principal purpose the avoidance of Illinois
20  income tax, and is paid pursuant to a contract
21  or agreement that reflects arm's-length terms;
22  or
23  (iii) any item of intangible expense or cost
24  paid, accrued, or incurred, directly or
25  indirectly, from a transaction with a person if
26  the taxpayer establishes by clear and convincing

 

 

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1  evidence, that the adjustments are unreasonable;
2  or if the taxpayer and the Director agree in
3  writing to the application or use of an
4  alternative method of apportionment under Section
5  304(f);
6  Nothing in this subsection shall preclude the
7  Director from making any other adjustment
8  otherwise allowed under Section 404 of this Act
9  for any tax year beginning after the effective
10  date of this amendment provided such adjustment is
11  made pursuant to regulation adopted by the
12  Department and such regulations provide methods
13  and standards by which the Department will utilize
14  its authority under Section 404 of this Act;
15  (E-14) For taxable years ending on or after
16  December 31, 2008, an amount equal to the amount of
17  insurance premium expenses and costs otherwise allowed
18  as a deduction in computing base income, and that were
19  paid, accrued, or incurred, directly or indirectly, to
20  a person who would be a member of the same unitary
21  business group but for the fact that the person is
22  prohibited under Section 1501(a)(27) from being
23  included in the unitary business group because he or
24  she is ordinarily required to apportion business
25  income under different subsections of Section 304. The
26  addition modification required by this subparagraph

 

 

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1  shall be reduced to the extent that dividends were
2  included in base income of the unitary group for the
3  same taxable year and received by the taxpayer or by a
4  member of the taxpayer's unitary business group
5  (including amounts included in gross income under
6  Sections 951 through 964 of the Internal Revenue Code
7  and amounts included in gross income under Section 78
8  of the Internal Revenue Code) with respect to the
9  stock of the same person to whom the premiums and costs
10  were directly or indirectly paid, incurred, or
11  accrued. The preceding sentence does not apply to the
12  extent that the same dividends caused a reduction to
13  the addition modification required under Section
14  203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
15  Act;
16  (E-15) For taxable years beginning after December
17  31, 2008, any deduction for dividends paid by a
18  captive real estate investment trust that is allowed
19  to a real estate investment trust under Section
20  857(b)(2)(B) of the Internal Revenue Code for
21  dividends paid;
22  (E-16) An amount equal to the credit allowable to
23  the taxpayer under Section 218(a) of this Act,
24  determined without regard to Section 218(c) of this
25  Act;
26  (E-17) For taxable years ending on or after

 

 

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1  December 31, 2017, an amount equal to the deduction
2  allowed under Section 199 of the Internal Revenue Code
3  for the taxable year;
4  (E-18) for taxable years beginning after December
5  31, 2018, an amount equal to the deduction allowed
6  under Section 250(a)(1)(A) of the Internal Revenue
7  Code for the taxable year;
8  (E-19) for taxable years ending on or after June
9  30, 2021, an amount equal to the deduction allowed
10  under Section 250(a)(1)(B)(i) of the Internal Revenue
11  Code for the taxable year;
12  (E-20) for taxable years ending on or after June
13  30, 2021, an amount equal to the deduction allowed
14  under Sections 243(e) and 245A(a) of the Internal
15  Revenue Code for the taxable year;
16  (E-21) the amount that is claimed as a federal
17  deduction when computing the taxpayer's federal
18  taxable income for the taxable year and that is
19  attributable to an endowment gift for which the
20  taxpayer receives a credit under the Illinois Gives
21  Tax Credit Act;
22  and by deducting from the total so obtained the sum of the
23  following amounts:
24  (F) An amount equal to the amount of any tax
25  imposed by this Act which was refunded to the taxpayer
26  and included in such total for the taxable year;

 

 

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1  (G) An amount equal to any amount included in such
2  total under Section 78 of the Internal Revenue Code;
3  (H) In the case of a regulated investment company,
4  an amount equal to the amount of exempt interest
5  dividends as defined in subsection (b)(5) of Section
6  852 of the Internal Revenue Code, paid to shareholders
7  for the taxable year;
8  (I) With the exception of any amounts subtracted
9  under subparagraph (J), an amount equal to the sum of
10  all amounts disallowed as deductions by (i) Sections
11  171(a)(2) and 265(a)(2) and amounts disallowed as
12  interest expense by Section 291(a)(3) of the Internal
13  Revenue Code, and all amounts of expenses allocable to
14  interest and disallowed as deductions by Section
15  265(a)(1) of the Internal Revenue Code; and (ii) for
16  taxable years ending on or after August 13, 1999,
17  Sections 171(a)(2), 265, 280C, 291(a)(3), and
18  832(b)(5)(B)(i) of the Internal Revenue Code, plus,
19  for tax years ending on or after December 31, 2011,
20  amounts disallowed as deductions by Section 45G(e)(3)
21  of the Internal Revenue Code and, for taxable years
22  ending on or after December 31, 2008, any amount
23  included in gross income under Section 87 of the
24  Internal Revenue Code and the policyholders' share of
25  tax-exempt interest of a life insurance company under
26  Section 807(a)(2)(B) of the Internal Revenue Code (in

 

 

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1  the case of a life insurance company with gross income
2  from a decrease in reserves for the tax year) or
3  Section 807(b)(1)(B) of the Internal Revenue Code (in
4  the case of a life insurance company allowed a
5  deduction for an increase in reserves for the tax
6  year); the provisions of this subparagraph are exempt
7  from the provisions of Section 250;
8  (J) An amount equal to all amounts included in
9  such total which are exempt from taxation by this
10  State either by reason of its statutes or Constitution
11  or by reason of the Constitution, treaties or statutes
12  of the United States; provided that, in the case of any
13  statute of this State that exempts income derived from
14  bonds or other obligations from the tax imposed under
15  this Act, the amount exempted shall be the interest
16  net of bond premium amortization;
17  (K) An amount equal to those dividends included in
18  such total which were paid by a corporation which
19  conducts business operations in a River Edge
20  Redevelopment Zone or zones created under the River
21  Edge Redevelopment Zone Act and conducts substantially
22  all of its operations in a River Edge Redevelopment
23  Zone or zones. This subparagraph (K) is exempt from
24  the provisions of Section 250;
25  (L) An amount equal to those dividends included in
26  such total that were paid by a corporation that

 

 

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1  conducts business operations in a federally designated
2  Foreign Trade Zone or Sub-Zone and that is designated
3  a High Impact Business located in Illinois; provided
4  that dividends eligible for the deduction provided in
5  subparagraph (K) of paragraph 2 of this subsection
6  shall not be eligible for the deduction provided under
7  this subparagraph (L);
8  (M) For any taxpayer that is a financial
9  organization within the meaning of Section 304(c) of
10  this Act, an amount included in such total as interest
11  income from a loan or loans made by such taxpayer to a
12  borrower, to the extent that such a loan is secured by
13  property which is eligible for the River Edge
14  Redevelopment Zone Investment Credit. To determine the
15  portion of a loan or loans that is secured by property
16  eligible for a Section 201(f) investment credit to the
17  borrower, the entire principal amount of the loan or
18  loans between the taxpayer and the borrower should be
19  divided into the basis of the Section 201(f)
20  investment credit property which secures the loan or
21  loans, using for this purpose the original basis of
22  such property on the date that it was placed in service
23  in the River Edge Redevelopment Zone. The subtraction
24  modification available to the taxpayer in any year
25  under this subsection shall be that portion of the
26  total interest paid by the borrower with respect to

 

 

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1  such loan attributable to the eligible property as
2  calculated under the previous sentence. This
3  subparagraph (M) is exempt from the provisions of
4  Section 250;
5  (M-1) For any taxpayer that is a financial
6  organization within the meaning of Section 304(c) of
7  this Act, an amount included in such total as interest
8  income from a loan or loans made by such taxpayer to a
9  borrower, to the extent that such a loan is secured by
10  property which is eligible for the High Impact
11  Business Investment Credit. To determine the portion
12  of a loan or loans that is secured by property eligible
13  for a Section 201(h) investment credit to the
14  borrower, the entire principal amount of the loan or
15  loans between the taxpayer and the borrower should be
16  divided into the basis of the Section 201(h)
17  investment credit property which secures the loan or
18  loans, using for this purpose the original basis of
19  such property on the date that it was placed in service
20  in a federally designated Foreign Trade Zone or
21  Sub-Zone located in Illinois. No taxpayer that is
22  eligible for the deduction provided in subparagraph
23  (M) of paragraph (2) of this subsection shall be
24  eligible for the deduction provided under this
25  subparagraph (M-1). The subtraction modification
26  available to taxpayers in any year under this

 

 

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1  subsection shall be that portion of the total interest
2  paid by the borrower with respect to such loan
3  attributable to the eligible property as calculated
4  under the previous sentence;
5  (N) Two times any contribution made during the
6  taxable year to a designated zone organization to the
7  extent that the contribution (i) qualifies as a
8  charitable contribution under subsection (c) of
9  Section 170 of the Internal Revenue Code and (ii)
10  must, by its terms, be used for a project approved by
11  the Department of Commerce and Economic Opportunity
12  under Section 11 of the Illinois Enterprise Zone Act
13  or under Section 10-10 of the River Edge Redevelopment
14  Zone Act. This subparagraph (N) is exempt from the
15  provisions of Section 250;
16  (O) An amount equal to: (i) 85% for taxable years
17  ending on or before December 31, 1992, or, a
18  percentage equal to the percentage allowable under
19  Section 243(a)(1) of the Internal Revenue Code of 1986
20  for taxable years ending after December 31, 1992, of
21  the amount by which dividends included in taxable
22  income and received from a corporation that is not
23  created or organized under the laws of the United
24  States or any state or political subdivision thereof,
25  including, for taxable years ending on or after
26  December 31, 1988, dividends received or deemed

 

 

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1  received or paid or deemed paid under Sections 951
2  through 965 of the Internal Revenue Code, exceed the
3  amount of the modification provided under subparagraph
4  (G) of paragraph (2) of this subsection (b) which is
5  related to such dividends, and including, for taxable
6  years ending on or after December 31, 2008, dividends
7  received from a captive real estate investment trust;
8  plus (ii) 100% of the amount by which dividends,
9  included in taxable income and received, including,
10  for taxable years ending on or after December 31,
11  1988, dividends received or deemed received or paid or
12  deemed paid under Sections 951 through 964 of the
13  Internal Revenue Code and including, for taxable years
14  ending on or after December 31, 2008, dividends
15  received from a captive real estate investment trust,
16  from any such corporation specified in clause (i) that
17  would but for the provisions of Section 1504(b)(3) of
18  the Internal Revenue Code be treated as a member of the
19  affiliated group which includes the dividend
20  recipient, exceed the amount of the modification
21  provided under subparagraph (G) of paragraph (2) of
22  this subsection (b) which is related to such
23  dividends. For taxable years ending on or after June
24  30, 2021, (i) for purposes of this subparagraph, the
25  term "dividend" does not include any amount treated as
26  a dividend under Section 1248 of the Internal Revenue

 

 

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1  Code, and (ii) this subparagraph shall not apply to
2  dividends for which a deduction is allowed under
3  Section 245(a) of the Internal Revenue Code. This
4  subparagraph (O) is exempt from the provisions of
5  Section 250 of this Act;
6  (P) An amount equal to any contribution made to a
7  job training project established pursuant to the Tax
8  Increment Allocation Redevelopment Act;
9  (Q) An amount equal to the amount of the deduction
10  used to compute the federal income tax credit for
11  restoration of substantial amounts held under claim of
12  right for the taxable year pursuant to Section 1341 of
13  the Internal Revenue Code;
14  (R) On and after July 20, 1999, in the case of an
15  attorney-in-fact with respect to whom an interinsurer
16  or a reciprocal insurer has made the election under
17  Section 835 of the Internal Revenue Code, 26 U.S.C.
18  835, an amount equal to the excess, if any, of the
19  amounts paid or incurred by that interinsurer or
20  reciprocal insurer in the taxable year to the
21  attorney-in-fact over the deduction allowed to that
22  interinsurer or reciprocal insurer with respect to the
23  attorney-in-fact under Section 835(b) of the Internal
24  Revenue Code for the taxable year; the provisions of
25  this subparagraph are exempt from the provisions of
26  Section 250;

 

 

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1  (S) For taxable years ending on or after December
2  31, 1997, in the case of a Subchapter S corporation, an
3  amount equal to all amounts of income allocable to a
4  shareholder subject to the Personal Property Tax
5  Replacement Income Tax imposed by subsections (c) and
6  (d) of Section 201 of this Act, including amounts
7  allocable to organizations exempt from federal income
8  tax by reason of Section 501(a) of the Internal
9  Revenue Code. This subparagraph (S) is exempt from the
10  provisions of Section 250;
11  (T) For taxable years 2001 and thereafter, for the
12  taxable year in which the bonus depreciation deduction
13  is taken on the taxpayer's federal income tax return
14  under subsection (k) of Section 168 of the Internal
15  Revenue Code and for each applicable taxable year
16  thereafter, an amount equal to "x", where:
17  (1) "y" equals the amount of the depreciation
18  deduction taken for the taxable year on the
19  taxpayer's federal income tax return on property
20  for which the bonus depreciation deduction was
21  taken in any year under subsection (k) of Section
22  168 of the Internal Revenue Code, but not
23  including the bonus depreciation deduction;
24  (2) for taxable years ending on or before
25  December 31, 2005, "x" equals "y" multiplied by 30
26  and then divided by 70 (or "y" multiplied by

 

 

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1  0.429); and
2  (3) for taxable years ending after December
3  31, 2005:
4  (i) for property on which a bonus
5  depreciation deduction of 30% of the adjusted
6  basis was taken, "x" equals "y" multiplied by
7  30 and then divided by 70 (or "y" multiplied
8  by 0.429);
9  (ii) for property on which a bonus
10  depreciation deduction of 50% of the adjusted
11  basis was taken, "x" equals "y" multiplied by
12  1.0;
13  (iii) for property on which a bonus
14  depreciation deduction of 100% of the adjusted
15  basis was taken in a taxable year ending on or
16  after December 31, 2021, "x" equals the
17  depreciation deduction that would be allowed
18  on that property if the taxpayer had made the
19  election under Section 168(k)(7) of the
20  Internal Revenue Code to not claim bonus
21  depreciation on that property; and
22  (iv) for property on which a bonus
23  depreciation deduction of a percentage other
24  than 30%, 50% or 100% of the adjusted basis
25  was taken in a taxable year ending on or after
26  December 31, 2021, "x" equals "y" multiplied

 

 

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1  by 100 times the percentage bonus depreciation
2  on the property (that is, 100(bonus%)) and
3  then divided by 100 times 1 minus the
4  percentage bonus depreciation on the property
5  (that is, 100(1-bonus%)).
6  The aggregate amount deducted under this
7  subparagraph in all taxable years for any one piece of
8  property may not exceed the amount of the bonus
9  depreciation deduction taken on that property on the
10  taxpayer's federal income tax return under subsection
11  (k) of Section 168 of the Internal Revenue Code. This
12  subparagraph (T) is exempt from the provisions of
13  Section 250;
14  (U) If the taxpayer sells, transfers, abandons, or
15  otherwise disposes of property for which the taxpayer
16  was required in any taxable year to make an addition
17  modification under subparagraph (E-10), then an amount
18  equal to that addition modification.
19  If the taxpayer continues to own property through
20  the last day of the last tax year for which a
21  subtraction is allowed with respect to that property
22  under subparagraph (T) and for which the taxpayer was
23  required in any taxable year to make an addition
24  modification under subparagraph (E-10), then an amount
25  equal to that addition modification.
26  The taxpayer is allowed to take the deduction

 

 

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1  under this subparagraph only once with respect to any
2  one piece of property.
3  This subparagraph (U) is exempt from the
4  provisions of Section 250;
5  (V) The amount of: (i) any interest income (net of
6  the deductions allocable thereto) taken into account
7  for the taxable year with respect to a transaction
8  with a taxpayer that is required to make an addition
9  modification with respect to such transaction under
10  Section 203(a)(2)(D-17), 203(b)(2)(E-12),
11  203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
12  the amount of such addition modification, (ii) any
13  income from intangible property (net of the deductions
14  allocable thereto) taken into account for the taxable
15  year with respect to a transaction with a taxpayer
16  that is required to make an addition modification with
17  respect to such transaction under Section
18  203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
19  203(d)(2)(D-8), but not to exceed the amount of such
20  addition modification, and (iii) any insurance premium
21  income (net of deductions allocable thereto) taken
22  into account for the taxable year with respect to a
23  transaction with a taxpayer that is required to make
24  an addition modification with respect to such
25  transaction under Section 203(a)(2)(D-19), Section
26  203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section

 

 

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1  203(d)(2)(D-9), but not to exceed the amount of that
2  addition modification. This subparagraph (V) is exempt
3  from the provisions of Section 250;
4  (W) An amount equal to the interest income taken
5  into account for the taxable year (net of the
6  deductions allocable thereto) with respect to
7  transactions with (i) a foreign person who would be a
8  member of the taxpayer's unitary business group but
9  for the fact that the foreign person's business
10  activity outside the United States is 80% or more of
11  that person's total business activity and (ii) for
12  taxable years ending on or after December 31, 2008, to
13  a person who would be a member of the same unitary
14  business group but for the fact that the person is
15  prohibited under Section 1501(a)(27) from being
16  included in the unitary business group because he or
17  she is ordinarily required to apportion business
18  income under different subsections of Section 304, but
19  not to exceed the addition modification required to be
20  made for the same taxable year under Section
21  203(b)(2)(E-12) for interest paid, accrued, or
22  incurred, directly or indirectly, to the same person.
23  This subparagraph (W) is exempt from the provisions of
24  Section 250;
25  (X) An amount equal to the income from intangible
26  property taken into account for the taxable year (net

 

 

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1  of the deductions allocable thereto) with respect to
2  transactions with (i) a foreign person who would be a
3  member of the taxpayer's unitary business group but
4  for the fact that the foreign person's business
5  activity outside the United States is 80% or more of
6  that person's total business activity and (ii) for
7  taxable years ending on or after December 31, 2008, to
8  a person who would be a member of the same unitary
9  business group but for the fact that the person is
10  prohibited under Section 1501(a)(27) from being
11  included in the unitary business group because he or
12  she is ordinarily required to apportion business
13  income under different subsections of Section 304, but
14  not to exceed the addition modification required to be
15  made for the same taxable year under Section
16  203(b)(2)(E-13) for intangible expenses and costs
17  paid, accrued, or incurred, directly or indirectly, to
18  the same foreign person. This subparagraph (X) is
19  exempt from the provisions of Section 250;
20  (Y) For taxable years ending on or after December
21  31, 2011, in the case of a taxpayer who was required to
22  add back any insurance premiums under Section
23  203(b)(2)(E-14), such taxpayer may elect to subtract
24  that part of a reimbursement received from the
25  insurance company equal to the amount of the expense
26  or loss (including expenses incurred by the insurance

 

 

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1  company) that would have been taken into account as a
2  deduction for federal income tax purposes if the
3  expense or loss had been uninsured. If a taxpayer
4  makes the election provided for by this subparagraph
5  (Y), the insurer to which the premiums were paid must
6  add back to income the amount subtracted by the
7  taxpayer pursuant to this subparagraph (Y). This
8  subparagraph (Y) is exempt from the provisions of
9  Section 250;
10  (Z) The difference between the nondeductible
11  controlled foreign corporation dividends under Section
12  965(e)(3) of the Internal Revenue Code over the
13  taxable income of the taxpayer, computed without
14  regard to Section 965(e)(2)(A) of the Internal Revenue
15  Code, and without regard to any net operating loss
16  deduction. This subparagraph (Z) is exempt from the
17  provisions of Section 250; and
18  (AA) For taxable years beginning on or after
19  January 1, 2023, for any cannabis establishment
20  operating in this State and licensed under the
21  Cannabis Regulation and Tax Act or any cannabis
22  cultivation center or medical cannabis dispensing
23  organization operating in this State and licensed
24  under the Compassionate Use of Medical Cannabis
25  Program Act, an amount equal to the deductions that
26  were disallowed under Section 280E of the Internal

 

 

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1  Revenue Code for the taxable year and that would not be
2  added back under this subsection. The provisions of
3  this subparagraph (AA) are exempt from the provisions
4  of Section 250.
5  (3) Special rule. For purposes of paragraph (2)(A),
6  "gross income" in the case of a life insurance company,
7  for tax years ending on and after December 31, 1994, and
8  prior to December 31, 2011, shall mean the gross
9  investment income for the taxable year and, for tax years
10  ending on or after December 31, 2011, shall mean all
11  amounts included in life insurance gross income under
12  Section 803(a)(3) of the Internal Revenue Code.
13  (c) Trusts and estates.
14  (1) In general. In the case of a trust or estate, base
15  income means an amount equal to the taxpayer's taxable
16  income for the taxable year as modified by paragraph (2).
17  (2) Modifications. Subject to the provisions of
18  paragraph (3), the taxable income referred to in paragraph
19  (1) shall be modified by adding thereto the sum of the
20  following amounts:
21  (A) An amount equal to all amounts paid or accrued
22  to the taxpayer as interest or dividends during the
23  taxable year to the extent excluded from gross income
24  in the computation of taxable income;
25  (B) In the case of (i) an estate, $600; (ii) a

 

 

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1  trust which, under its governing instrument, is
2  required to distribute all of its income currently,
3  $300; and (iii) any other trust, $100, but in each such
4  case, only to the extent such amount was deducted in
5  the computation of taxable income;
6  (C) An amount equal to the amount of tax imposed by
7  this Act to the extent deducted from gross income in
8  the computation of taxable income for the taxable
9  year;
10  (D) The amount of any net operating loss deduction
11  taken in arriving at taxable income, other than a net
12  operating loss carried forward from a taxable year
13  ending prior to December 31, 1986;
14  (E) For taxable years in which a net operating
15  loss carryback or carryforward from a taxable year
16  ending prior to December 31, 1986 is an element of
17  taxable income under paragraph (1) of subsection (e)
18  or subparagraph (E) of paragraph (2) of subsection
19  (e), the amount by which addition modifications other
20  than those provided by this subparagraph (E) exceeded
21  subtraction modifications in such taxable year, with
22  the following limitations applied in the order that
23  they are listed:
24  (i) the addition modification relating to the
25  net operating loss carried back or forward to the
26  taxable year from any taxable year ending prior to

 

 

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1  December 31, 1986 shall be reduced by the amount
2  of addition modification under this subparagraph
3  (E) which related to that net operating loss and
4  which was taken into account in calculating the
5  base income of an earlier taxable year, and
6  (ii) the addition modification relating to the
7  net operating loss carried back or forward to the
8  taxable year from any taxable year ending prior to
9  December 31, 1986 shall not exceed the amount of
10  such carryback or carryforward;
11  For taxable years in which there is a net
12  operating loss carryback or carryforward from more
13  than one other taxable year ending prior to December
14  31, 1986, the addition modification provided in this
15  subparagraph (E) shall be the sum of the amounts
16  computed independently under the preceding provisions
17  of this subparagraph (E) for each such taxable year;
18  (F) For taxable years ending on or after January
19  1, 1989, an amount equal to the tax deducted pursuant
20  to Section 164 of the Internal Revenue Code if the
21  trust or estate is claiming the same tax for purposes
22  of the Illinois foreign tax credit under Section 601
23  of this Act;
24  (G) An amount equal to the amount of the capital
25  gain deduction allowable under the Internal Revenue
26  Code, to the extent deducted from gross income in the

 

 

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1  computation of taxable income;
2  (G-5) For taxable years ending after December 31,
3  1997, an amount equal to any eligible remediation
4  costs that the trust or estate deducted in computing
5  adjusted gross income and for which the trust or
6  estate claims a credit under subsection (l) of Section
7  201;
8  (G-10) For taxable years 2001 and thereafter, an
9  amount equal to the bonus depreciation deduction taken
10  on the taxpayer's federal income tax return for the
11  taxable year under subsection (k) of Section 168 of
12  the Internal Revenue Code; and
13  (G-11) If the taxpayer sells, transfers, abandons,
14  or otherwise disposes of property for which the
15  taxpayer was required in any taxable year to make an
16  addition modification under subparagraph (G-10), then
17  an amount equal to the aggregate amount of the
18  deductions taken in all taxable years under
19  subparagraph (R) with respect to that property.
20  If the taxpayer continues to own property through
21  the last day of the last tax year for which a
22  subtraction is allowed with respect to that property
23  under subparagraph (R) and for which the taxpayer was
24  allowed in any taxable year to make a subtraction
25  modification under subparagraph (R), then an amount
26  equal to that subtraction modification.

 

 

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1  The taxpayer is required to make the addition
2  modification under this subparagraph only once with
3  respect to any one piece of property;
4  (G-12) An amount equal to the amount otherwise
5  allowed as a deduction in computing base income for
6  interest paid, accrued, or incurred, directly or
7  indirectly, (i) for taxable years ending on or after
8  December 31, 2004, to a foreign person who would be a
9  member of the same unitary business group but for the
10  fact that the foreign person's business activity
11  outside the United States is 80% or more of the foreign
12  person's total business activity and (ii) for taxable
13  years ending on or after December 31, 2008, to a person
14  who would be a member of the same unitary business
15  group but for the fact that the person is prohibited
16  under Section 1501(a)(27) from being included in the
17  unitary business group because he or she is ordinarily
18  required to apportion business income under different
19  subsections of Section 304. The addition modification
20  required by this subparagraph shall be reduced to the
21  extent that dividends were included in base income of
22  the unitary group for the same taxable year and
23  received by the taxpayer or by a member of the
24  taxpayer's unitary business group (including amounts
25  included in gross income pursuant to Sections 951
26  through 964 of the Internal Revenue Code and amounts

 

 

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1  included in gross income under Section 78 of the
2  Internal Revenue Code) with respect to the stock of
3  the same person to whom the interest was paid,
4  accrued, or incurred.
5  This paragraph shall not apply to the following:
6  (i) an item of interest paid, accrued, or
7  incurred, directly or indirectly, to a person who
8  is subject in a foreign country or state, other
9  than a state which requires mandatory unitary
10  reporting, to a tax on or measured by net income
11  with respect to such interest; or
12  (ii) an item of interest paid, accrued, or
13  incurred, directly or indirectly, to a person if
14  the taxpayer can establish, based on a
15  preponderance of the evidence, both of the
16  following:
17  (a) the person, during the same taxable
18  year, paid, accrued, or incurred, the interest
19  to a person that is not a related member, and
20  (b) the transaction giving rise to the
21  interest expense between the taxpayer and the
22  person did not have as a principal purpose the
23  avoidance of Illinois income tax, and is paid
24  pursuant to a contract or agreement that
25  reflects an arm's-length interest rate and
26  terms; or

 

 

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1  (iii) the taxpayer can establish, based on
2  clear and convincing evidence, that the interest
3  paid, accrued, or incurred relates to a contract
4  or agreement entered into at arm's-length rates
5  and terms and the principal purpose for the
6  payment is not federal or Illinois tax avoidance;
7  or
8  (iv) an item of interest paid, accrued, or
9  incurred, directly or indirectly, to a person if
10  the taxpayer establishes by clear and convincing
11  evidence that the adjustments are unreasonable; or
12  if the taxpayer and the Director agree in writing
13  to the application or use of an alternative method
14  of apportionment under Section 304(f).
15  Nothing in this subsection shall preclude the
16  Director from making any other adjustment
17  otherwise allowed under Section 404 of this Act
18  for any tax year beginning after the effective
19  date of this amendment provided such adjustment is
20  made pursuant to regulation adopted by the
21  Department and such regulations provide methods
22  and standards by which the Department will utilize
23  its authority under Section 404 of this Act;
24  (G-13) An amount equal to the amount of intangible
25  expenses and costs otherwise allowed as a deduction in
26  computing base income, and that were paid, accrued, or

 

 

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1  incurred, directly or indirectly, (i) for taxable
2  years ending on or after December 31, 2004, to a
3  foreign person who would be a member of the same
4  unitary business group but for the fact that the
5  foreign person's business activity outside the United
6  States is 80% or more of that person's total business
7  activity and (ii) for taxable years ending on or after
8  December 31, 2008, to a person who would be a member of
9  the same unitary business group but for the fact that
10  the person is prohibited under Section 1501(a)(27)
11  from being included in the unitary business group
12  because he or she is ordinarily required to apportion
13  business income under different subsections of Section
14  304. The addition modification required by this
15  subparagraph shall be reduced to the extent that
16  dividends were included in base income of the unitary
17  group for the same taxable year and received by the
18  taxpayer or by a member of the taxpayer's unitary
19  business group (including amounts included in gross
20  income pursuant to Sections 951 through 964 of the
21  Internal Revenue Code and amounts included in gross
22  income under Section 78 of the Internal Revenue Code)
23  with respect to the stock of the same person to whom
24  the intangible expenses and costs were directly or
25  indirectly paid, incurred, or accrued. The preceding
26  sentence shall not apply to the extent that the same

 

 

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1  dividends caused a reduction to the addition
2  modification required under Section 203(c)(2)(G-12) of
3  this Act. As used in this subparagraph, the term
4  "intangible expenses and costs" includes: (1)
5  expenses, losses, and costs for or related to the
6  direct or indirect acquisition, use, maintenance or
7  management, ownership, sale, exchange, or any other
8  disposition of intangible property; (2) losses
9  incurred, directly or indirectly, from factoring
10  transactions or discounting transactions; (3) royalty,
11  patent, technical, and copyright fees; (4) licensing
12  fees; and (5) other similar expenses and costs. For
13  purposes of this subparagraph, "intangible property"
14  includes patents, patent applications, trade names,
15  trademarks, service marks, copyrights, mask works,
16  trade secrets, and similar types of intangible assets.
17  This paragraph shall not apply to the following:
18  (i) any item of intangible expenses or costs
19  paid, accrued, or incurred, directly or
20  indirectly, from a transaction with a person who
21  is subject in a foreign country or state, other
22  than a state which requires mandatory unitary
23  reporting, to a tax on or measured by net income
24  with respect to such item; or
25  (ii) any item of intangible expense or cost
26  paid, accrued, or incurred, directly or

 

 

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1  indirectly, if the taxpayer can establish, based
2  on a preponderance of the evidence, both of the
3  following:
4  (a) the person during the same taxable
5  year paid, accrued, or incurred, the
6  intangible expense or cost to a person that is
7  not a related member, and
8  (b) the transaction giving rise to the
9  intangible expense or cost between the
10  taxpayer and the person did not have as a
11  principal purpose the avoidance of Illinois
12  income tax, and is paid pursuant to a contract
13  or agreement that reflects arm's-length terms;
14  or
15  (iii) any item of intangible expense or cost
16  paid, accrued, or incurred, directly or
17  indirectly, from a transaction with a person if
18  the taxpayer establishes by clear and convincing
19  evidence, that the adjustments are unreasonable;
20  or if the taxpayer and the Director agree in
21  writing to the application or use of an
22  alternative method of apportionment under Section
23  304(f);
24  Nothing in this subsection shall preclude the
25  Director from making any other adjustment
26  otherwise allowed under Section 404 of this Act

 

 

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1  for any tax year beginning after the effective
2  date of this amendment provided such adjustment is
3  made pursuant to regulation adopted by the
4  Department and such regulations provide methods
5  and standards by which the Department will utilize
6  its authority under Section 404 of this Act;
7  (G-14) For taxable years ending on or after
8  December 31, 2008, an amount equal to the amount of
9  insurance premium expenses and costs otherwise allowed
10  as a deduction in computing base income, and that were
11  paid, accrued, or incurred, directly or indirectly, to
12  a person who would be a member of the same unitary
13  business group but for the fact that the person is
14  prohibited under Section 1501(a)(27) from being
15  included in the unitary business group because he or
16  she is ordinarily required to apportion business
17  income under different subsections of Section 304. The
18  addition modification required by this subparagraph
19  shall be reduced to the extent that dividends were
20  included in base income of the unitary group for the
21  same taxable year and received by the taxpayer or by a
22  member of the taxpayer's unitary business group
23  (including amounts included in gross income under
24  Sections 951 through 964 of the Internal Revenue Code
25  and amounts included in gross income under Section 78
26  of the Internal Revenue Code) with respect to the

 

 

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1  stock of the same person to whom the premiums and costs
2  were directly or indirectly paid, incurred, or
3  accrued. The preceding sentence does not apply to the
4  extent that the same dividends caused a reduction to
5  the addition modification required under Section
6  203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
7  Act;
8  (G-15) An amount equal to the credit allowable to
9  the taxpayer under Section 218(a) of this Act,
10  determined without regard to Section 218(c) of this
11  Act;
12  (G-16) For taxable years ending on or after
13  December 31, 2017, an amount equal to the deduction
14  allowed under Section 199 of the Internal Revenue Code
15  for the taxable year;
16  (G-17) the amount that is claimed as a federal
17  deduction when computing the taxpayer's federal
18  taxable income for the taxable year and that is
19  attributable to an endowment gift for which the
20  taxpayer receives a credit under the Illinois Gives
21  Tax Credit Act;
22  and by deducting from the total so obtained the sum of the
23  following amounts:
24  (H) An amount equal to all amounts included in
25  such total pursuant to the provisions of Sections
26  402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408

 

 

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1  of the Internal Revenue Code or included in such total
2  as distributions under the provisions of any
3  retirement or disability plan for employees of any
4  governmental agency or unit, or retirement payments to
5  retired partners, which payments are excluded in
6  computing net earnings from self employment by Section
7  1402 of the Internal Revenue Code and regulations
8  adopted pursuant thereto;
9  (I) The valuation limitation amount;
10  (J) An amount equal to the amount of any tax
11  imposed by this Act which was refunded to the taxpayer
12  and included in such total for the taxable year;
13  (K) An amount equal to all amounts included in
14  taxable income as modified by subparagraphs (A), (B),
15  (C), (D), (E), (F) and (G) which are exempt from
16  taxation by this State either by reason of its
17  statutes or Constitution or by reason of the
18  Constitution, treaties or statutes of the United
19  States; provided that, in the case of any statute of
20  this State that exempts income derived from bonds or
21  other obligations from the tax imposed under this Act,
22  the amount exempted shall be the interest net of bond
23  premium amortization;
24  (L) With the exception of any amounts subtracted
25  under subparagraph (K), an amount equal to the sum of
26  all amounts disallowed as deductions by (i) Sections

 

 

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1  171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2  and all amounts of expenses allocable to interest and
3  disallowed as deductions by Section 265(a)(1) of the
4  Internal Revenue Code; and (ii) for taxable years
5  ending on or after August 13, 1999, Sections
6  171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
7  Internal Revenue Code, plus, (iii) for taxable years
8  ending on or after December 31, 2011, Section
9  45G(e)(3) of the Internal Revenue Code and, for
10  taxable years ending on or after December 31, 2008,
11  any amount included in gross income under Section 87
12  of the Internal Revenue Code; the provisions of this
13  subparagraph are exempt from the provisions of Section
14  250;
15  (M) An amount equal to those dividends included in
16  such total which were paid by a corporation which
17  conducts business operations in a River Edge
18  Redevelopment Zone or zones created under the River
19  Edge Redevelopment Zone Act and conducts substantially
20  all of its operations in a River Edge Redevelopment
21  Zone or zones. This subparagraph (M) is exempt from
22  the provisions of Section 250;
23  (N) An amount equal to any contribution made to a
24  job training project established pursuant to the Tax
25  Increment Allocation Redevelopment Act;
26  (O) An amount equal to those dividends included in

 

 

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1  such total that were paid by a corporation that
2  conducts business operations in a federally designated
3  Foreign Trade Zone or Sub-Zone and that is designated
4  a High Impact Business located in Illinois; provided
5  that dividends eligible for the deduction provided in
6  subparagraph (M) of paragraph (2) of this subsection
7  shall not be eligible for the deduction provided under
8  this subparagraph (O);
9  (P) An amount equal to the amount of the deduction
10  used to compute the federal income tax credit for
11  restoration of substantial amounts held under claim of
12  right for the taxable year pursuant to Section 1341 of
13  the Internal Revenue Code;
14  (Q) For taxable year 1999 and thereafter, an
15  amount equal to the amount of any (i) distributions,
16  to the extent includible in gross income for federal
17  income tax purposes, made to the taxpayer because of
18  his or her status as a victim of persecution for racial
19  or religious reasons by Nazi Germany or any other Axis
20  regime or as an heir of the victim and (ii) items of
21  income, to the extent includible in gross income for
22  federal income tax purposes, attributable to, derived
23  from or in any way related to assets stolen from,
24  hidden from, or otherwise lost to a victim of
25  persecution for racial or religious reasons by Nazi
26  Germany or any other Axis regime immediately prior to,

 

 

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1  during, and immediately after World War II, including,
2  but not limited to, interest on the proceeds
3  receivable as insurance under policies issued to a
4  victim of persecution for racial or religious reasons
5  by Nazi Germany or any other Axis regime by European
6  insurance companies immediately prior to and during
7  World War II; provided, however, this subtraction from
8  federal adjusted gross income does not apply to assets
9  acquired with such assets or with the proceeds from
10  the sale of such assets; provided, further, this
11  paragraph shall only apply to a taxpayer who was the
12  first recipient of such assets after their recovery
13  and who is a victim of persecution for racial or
14  religious reasons by Nazi Germany or any other Axis
15  regime or as an heir of the victim. The amount of and
16  the eligibility for any public assistance, benefit, or
17  similar entitlement is not affected by the inclusion
18  of items (i) and (ii) of this paragraph in gross income
19  for federal income tax purposes. This paragraph is
20  exempt from the provisions of Section 250;
21  (R) For taxable years 2001 and thereafter, for the
22  taxable year in which the bonus depreciation deduction
23  is taken on the taxpayer's federal income tax return
24  under subsection (k) of Section 168 of the Internal
25  Revenue Code and for each applicable taxable year
26  thereafter, an amount equal to "x", where:

 

 

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1  (1) "y" equals the amount of the depreciation
2  deduction taken for the taxable year on the
3  taxpayer's federal income tax return on property
4  for which the bonus depreciation deduction was
5  taken in any year under subsection (k) of Section
6  168 of the Internal Revenue Code, but not
7  including the bonus depreciation deduction;
8  (2) for taxable years ending on or before
9  December 31, 2005, "x" equals "y" multiplied by 30
10  and then divided by 70 (or "y" multiplied by
11  0.429); and
12  (3) for taxable years ending after December
13  31, 2005:
14  (i) for property on which a bonus
15  depreciation deduction of 30% of the adjusted
16  basis was taken, "x" equals "y" multiplied by
17  30 and then divided by 70 (or "y" multiplied
18  by 0.429);
19  (ii) for property on which a bonus
20  depreciation deduction of 50% of the adjusted
21  basis was taken, "x" equals "y" multiplied by
22  1.0;
23  (iii) for property on which a bonus
24  depreciation deduction of 100% of the adjusted
25  basis was taken in a taxable year ending on or
26  after December 31, 2021, "x" equals the

 

 

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1  depreciation deduction that would be allowed
2  on that property if the taxpayer had made the
3  election under Section 168(k)(7) of the
4  Internal Revenue Code to not claim bonus
5  depreciation on that property; and
6  (iv) for property on which a bonus
7  depreciation deduction of a percentage other
8  than 30%, 50% or 100% of the adjusted basis
9  was taken in a taxable year ending on or after
10  December 31, 2021, "x" equals "y" multiplied
11  by 100 times the percentage bonus depreciation
12  on the property (that is, 100(bonus%)) and
13  then divided by 100 times 1 minus the
14  percentage bonus depreciation on the property
15  (that is, 100(1-bonus%)).
16  The aggregate amount deducted under this
17  subparagraph in all taxable years for any one piece of
18  property may not exceed the amount of the bonus
19  depreciation deduction taken on that property on the
20  taxpayer's federal income tax return under subsection
21  (k) of Section 168 of the Internal Revenue Code. This
22  subparagraph (R) is exempt from the provisions of
23  Section 250;
24  (S) If the taxpayer sells, transfers, abandons, or
25  otherwise disposes of property for which the taxpayer
26  was required in any taxable year to make an addition

 

 

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1  modification under subparagraph (G-10), then an amount
2  equal to that addition modification.
3  If the taxpayer continues to own property through
4  the last day of the last tax year for which a
5  subtraction is allowed with respect to that property
6  under subparagraph (R) and for which the taxpayer was
7  required in any taxable year to make an addition
8  modification under subparagraph (G-10), then an amount
9  equal to that addition modification.
10  The taxpayer is allowed to take the deduction
11  under this subparagraph only once with respect to any
12  one piece of property.
13  This subparagraph (S) is exempt from the
14  provisions of Section 250;
15  (T) The amount of (i) any interest income (net of
16  the deductions allocable thereto) taken into account
17  for the taxable year with respect to a transaction
18  with a taxpayer that is required to make an addition
19  modification with respect to such transaction under
20  Section 203(a)(2)(D-17), 203(b)(2)(E-12),
21  203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
22  the amount of such addition modification and (ii) any
23  income from intangible property (net of the deductions
24  allocable thereto) taken into account for the taxable
25  year with respect to a transaction with a taxpayer
26  that is required to make an addition modification with

 

 

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1  respect to such transaction under Section
2  203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3  203(d)(2)(D-8), but not to exceed the amount of such
4  addition modification. This subparagraph (T) is exempt
5  from the provisions of Section 250;
6  (U) An amount equal to the interest income taken
7  into account for the taxable year (net of the
8  deductions allocable thereto) with respect to
9  transactions with (i) a foreign person who would be a
10  member of the taxpayer's unitary business group but
11  for the fact the foreign person's business activity
12  outside the United States is 80% or more of that
13  person's total business activity and (ii) for taxable
14  years ending on or after December 31, 2008, to a person
15  who would be a member of the same unitary business
16  group but for the fact that the person is prohibited
17  under Section 1501(a)(27) from being included in the
18  unitary business group because he or she is ordinarily
19  required to apportion business income under different
20  subsections of Section 304, but not to exceed the
21  addition modification required to be made for the same
22  taxable year under Section 203(c)(2)(G-12) for
23  interest paid, accrued, or incurred, directly or
24  indirectly, to the same person. This subparagraph (U)
25  is exempt from the provisions of Section 250;
26  (V) An amount equal to the income from intangible

 

 

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1  property taken into account for the taxable year (net
2  of the deductions allocable thereto) with respect to
3  transactions with (i) a foreign person who would be a
4  member of the taxpayer's unitary business group but
5  for the fact that the foreign person's business
6  activity outside the United States is 80% or more of
7  that person's total business activity and (ii) for
8  taxable years ending on or after December 31, 2008, to
9  a person who would be a member of the same unitary
10  business group but for the fact that the person is
11  prohibited under Section 1501(a)(27) from being
12  included in the unitary business group because he or
13  she is ordinarily required to apportion business
14  income under different subsections of Section 304, but
15  not to exceed the addition modification required to be
16  made for the same taxable year under Section
17  203(c)(2)(G-13) for intangible expenses and costs
18  paid, accrued, or incurred, directly or indirectly, to
19  the same foreign person. This subparagraph (V) is
20  exempt from the provisions of Section 250;
21  (W) in the case of an estate, an amount equal to
22  all amounts included in such total pursuant to the
23  provisions of Section 111 of the Internal Revenue Code
24  as a recovery of items previously deducted by the
25  decedent from adjusted gross income in the computation
26  of taxable income. This subparagraph (W) is exempt

 

 

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1  from Section 250;
2  (X) an amount equal to the refund included in such
3  total of any tax deducted for federal income tax
4  purposes, to the extent that deduction was added back
5  under subparagraph (F). This subparagraph (X) is
6  exempt from the provisions of Section 250;
7  (Y) For taxable years ending on or after December
8  31, 2011, in the case of a taxpayer who was required to
9  add back any insurance premiums under Section
10  203(c)(2)(G-14), such taxpayer may elect to subtract
11  that part of a reimbursement received from the
12  insurance company equal to the amount of the expense
13  or loss (including expenses incurred by the insurance
14  company) that would have been taken into account as a
15  deduction for federal income tax purposes if the
16  expense or loss had been uninsured. If a taxpayer
17  makes the election provided for by this subparagraph
18  (Y), the insurer to which the premiums were paid must
19  add back to income the amount subtracted by the
20  taxpayer pursuant to this subparagraph (Y). This
21  subparagraph (Y) is exempt from the provisions of
22  Section 250;
23  (Z) For taxable years beginning after December 31,
24  2018 and before January 1, 2026, the amount of excess
25  business loss of the taxpayer disallowed as a
26  deduction by Section 461(l)(1)(B) of the Internal

 

 

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1  Revenue Code; and
2  (AA) For taxable years beginning on or after
3  January 1, 2023, for any cannabis establishment
4  operating in this State and licensed under the
5  Cannabis Regulation and Tax Act or any cannabis
6  cultivation center or medical cannabis dispensing
7  organization operating in this State and licensed
8  under the Compassionate Use of Medical Cannabis
9  Program Act, an amount equal to the deductions that
10  were disallowed under Section 280E of the Internal
11  Revenue Code for the taxable year and that would not be
12  added back under this subsection. The provisions of
13  this subparagraph (AA) are exempt from the provisions
14  of Section 250.
15  (3) Limitation. The amount of any modification
16  otherwise required under this subsection shall, under
17  regulations prescribed by the Department, be adjusted by
18  any amounts included therein which were properly paid,
19  credited, or required to be distributed, or permanently
20  set aside for charitable purposes pursuant to Internal
21  Revenue Code Section 642(c) during the taxable year.
22  (d) Partnerships.
23  (1) In general. In the case of a partnership, base
24  income means an amount equal to the taxpayer's taxable
25  income for the taxable year as modified by paragraph (2).

 

 

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1  (2) Modifications. The taxable income referred to in
2  paragraph (1) shall be modified by adding thereto the sum
3  of the following amounts:
4  (A) An amount equal to all amounts paid or accrued
5  to the taxpayer as interest or dividends during the
6  taxable year to the extent excluded from gross income
7  in the computation of taxable income;
8  (B) An amount equal to the amount of tax imposed by
9  this Act to the extent deducted from gross income for
10  the taxable year;
11  (C) The amount of deductions allowed to the
12  partnership pursuant to Section 707 (c) of the
13  Internal Revenue Code in calculating its taxable
14  income;
15  (D) An amount equal to the amount of the capital
16  gain deduction allowable under the Internal Revenue
17  Code, to the extent deducted from gross income in the
18  computation of taxable income;
19  (D-5) For taxable years 2001 and thereafter, an
20  amount equal to the bonus depreciation deduction taken
21  on the taxpayer's federal income tax return for the
22  taxable year under subsection (k) of Section 168 of
23  the Internal Revenue Code;
24  (D-6) If the taxpayer sells, transfers, abandons,
25  or otherwise disposes of property for which the
26  taxpayer was required in any taxable year to make an

 

 

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1  addition modification under subparagraph (D-5), then
2  an amount equal to the aggregate amount of the
3  deductions taken in all taxable years under
4  subparagraph (O) with respect to that property.
5  If the taxpayer continues to own property through
6  the last day of the last tax year for which a
7  subtraction is allowed with respect to that property
8  under subparagraph (O) and for which the taxpayer was
9  allowed in any taxable year to make a subtraction
10  modification under subparagraph (O), then an amount
11  equal to that subtraction modification.
12  The taxpayer is required to make the addition
13  modification under this subparagraph only once with
14  respect to any one piece of property;
15  (D-7) An amount equal to the amount otherwise
16  allowed as a deduction in computing base income for
17  interest paid, accrued, or incurred, directly or
18  indirectly, (i) for taxable years ending on or after
19  December 31, 2004, to a foreign person who would be a
20  member of the same unitary business group but for the
21  fact the foreign person's business activity outside
22  the United States is 80% or more of the foreign
23  person's total business activity and (ii) for taxable
24  years ending on or after December 31, 2008, to a person
25  who would be a member of the same unitary business
26  group but for the fact that the person is prohibited

 

 

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1  under Section 1501(a)(27) from being included in the
2  unitary business group because he or she is ordinarily
3  required to apportion business income under different
4  subsections of Section 304. The addition modification
5  required by this subparagraph shall be reduced to the
6  extent that dividends were included in base income of
7  the unitary group for the same taxable year and
8  received by the taxpayer or by a member of the
9  taxpayer's unitary business group (including amounts
10  included in gross income pursuant to Sections 951
11  through 964 of the Internal Revenue Code and amounts
12  included in gross income under Section 78 of the
13  Internal Revenue Code) with respect to the stock of
14  the same person to whom the interest was paid,
15  accrued, or incurred.
16  This paragraph shall not apply to the following:
17  (i) an item of interest paid, accrued, or
18  incurred, directly or indirectly, to a person who
19  is subject in a foreign country or state, other
20  than a state which requires mandatory unitary
21  reporting, to a tax on or measured by net income
22  with respect to such interest; or
23  (ii) an item of interest paid, accrued, or
24  incurred, directly or indirectly, to a person if
25  the taxpayer can establish, based on a
26  preponderance of the evidence, both of the

 

 

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1  following:
2  (a) the person, during the same taxable
3  year, paid, accrued, or incurred, the interest
4  to a person that is not a related member, and
5  (b) the transaction giving rise to the
6  interest expense between the taxpayer and the
7  person did not have as a principal purpose the
8  avoidance of Illinois income tax, and is paid
9  pursuant to a contract or agreement that
10  reflects an arm's-length interest rate and
11  terms; or
12  (iii) the taxpayer can establish, based on
13  clear and convincing evidence, that the interest
14  paid, accrued, or incurred relates to a contract
15  or agreement entered into at arm's-length rates
16  and terms and the principal purpose for the
17  payment is not federal or Illinois tax avoidance;
18  or
19  (iv) an item of interest paid, accrued, or
20  incurred, directly or indirectly, to a person if
21  the taxpayer establishes by clear and convincing
22  evidence that the adjustments are unreasonable; or
23  if the taxpayer and the Director agree in writing
24  to the application or use of an alternative method
25  of apportionment under Section 304(f).
26  Nothing in this subsection shall preclude the

 

 

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1  Director from making any other adjustment
2  otherwise allowed under Section 404 of this Act
3  for any tax year beginning after the effective
4  date of this amendment provided such adjustment is
5  made pursuant to regulation adopted by the
6  Department and such regulations provide methods
7  and standards by which the Department will utilize
8  its authority under Section 404 of this Act; and
9  (D-8) An amount equal to the amount of intangible
10  expenses and costs otherwise allowed as a deduction in
11  computing base income, and that were paid, accrued, or
12  incurred, directly or indirectly, (i) for taxable
13  years ending on or after December 31, 2004, to a
14  foreign person who would be a member of the same
15  unitary business group but for the fact that the
16  foreign person's business activity outside the United
17  States is 80% or more of that person's total business
18  activity and (ii) for taxable years ending on or after
19  December 31, 2008, to a person who would be a member of
20  the same unitary business group but for the fact that
21  the person is prohibited under Section 1501(a)(27)
22  from being included in the unitary business group
23  because he or she is ordinarily required to apportion
24  business income under different subsections of Section
25  304. The addition modification required by this
26  subparagraph shall be reduced to the extent that

 

 

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1  dividends were included in base income of the unitary
2  group for the same taxable year and received by the
3  taxpayer or by a member of the taxpayer's unitary
4  business group (including amounts included in gross
5  income pursuant to Sections 951 through 964 of the
6  Internal Revenue Code and amounts included in gross
7  income under Section 78 of the Internal Revenue Code)
8  with respect to the stock of the same person to whom
9  the intangible expenses and costs were directly or
10  indirectly paid, incurred or accrued. The preceding
11  sentence shall not apply to the extent that the same
12  dividends caused a reduction to the addition
13  modification required under Section 203(d)(2)(D-7) of
14  this Act. As used in this subparagraph, the term
15  "intangible expenses and costs" includes (1) expenses,
16  losses, and costs for, or related to, the direct or
17  indirect acquisition, use, maintenance or management,
18  ownership, sale, exchange, or any other disposition of
19  intangible property; (2) losses incurred, directly or
20  indirectly, from factoring transactions or discounting
21  transactions; (3) royalty, patent, technical, and
22  copyright fees; (4) licensing fees; and (5) other
23  similar expenses and costs. For purposes of this
24  subparagraph, "intangible property" includes patents,
25  patent applications, trade names, trademarks, service
26  marks, copyrights, mask works, trade secrets, and

 

 

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1  similar types of intangible assets;
2  This paragraph shall not apply to the following:
3  (i) any item of intangible expenses or costs
4  paid, accrued, or incurred, directly or
5  indirectly, from a transaction with a person who
6  is subject in a foreign country or state, other
7  than a state which requires mandatory unitary
8  reporting, to a tax on or measured by net income
9  with respect to such item; or
10  (ii) any item of intangible expense or cost
11  paid, accrued, or incurred, directly or
12  indirectly, if the taxpayer can establish, based
13  on a preponderance of the evidence, both of the
14  following:
15  (a) the person during the same taxable
16  year paid, accrued, or incurred, the
17  intangible expense or cost to a person that is
18  not a related member, and
19  (b) the transaction giving rise to the
20  intangible expense or cost between the
21  taxpayer and the person did not have as a
22  principal purpose the avoidance of Illinois
23  income tax, and is paid pursuant to a contract
24  or agreement that reflects arm's-length terms;
25  or
26  (iii) any item of intangible expense or cost

 

 

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1  paid, accrued, or incurred, directly or
2  indirectly, from a transaction with a person if
3  the taxpayer establishes by clear and convincing
4  evidence, that the adjustments are unreasonable;
5  or if the taxpayer and the Director agree in
6  writing to the application or use of an
7  alternative method of apportionment under Section
8  304(f);
9  Nothing in this subsection shall preclude the
10  Director from making any other adjustment
11  otherwise allowed under Section 404 of this Act
12  for any tax year beginning after the effective
13  date of this amendment provided such adjustment is
14  made pursuant to regulation adopted by the
15  Department and such regulations provide methods
16  and standards by which the Department will utilize
17  its authority under Section 404 of this Act;
18  (D-9) For taxable years ending on or after
19  December 31, 2008, an amount equal to the amount of
20  insurance premium expenses and costs otherwise allowed
21  as a deduction in computing base income, and that were
22  paid, accrued, or incurred, directly or indirectly, to
23  a person who would be a member of the same unitary
24  business group but for the fact that the person is
25  prohibited under Section 1501(a)(27) from being
26  included in the unitary business group because he or

 

 

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1  she is ordinarily required to apportion business
2  income under different subsections of Section 304. The
3  addition modification required by this subparagraph
4  shall be reduced to the extent that dividends were
5  included in base income of the unitary group for the
6  same taxable year and received by the taxpayer or by a
7  member of the taxpayer's unitary business group
8  (including amounts included in gross income under
9  Sections 951 through 964 of the Internal Revenue Code
10  and amounts included in gross income under Section 78
11  of the Internal Revenue Code) with respect to the
12  stock of the same person to whom the premiums and costs
13  were directly or indirectly paid, incurred, or
14  accrued. The preceding sentence does not apply to the
15  extent that the same dividends caused a reduction to
16  the addition modification required under Section
17  203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
18  (D-10) An amount equal to the credit allowable to
19  the taxpayer under Section 218(a) of this Act,
20  determined without regard to Section 218(c) of this
21  Act;
22  (D-11) For taxable years ending on or after
23  December 31, 2017, an amount equal to the deduction
24  allowed under Section 199 of the Internal Revenue Code
25  for the taxable year;
26  (D-12) the amount that is claimed as a federal

 

 

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1  deduction when computing the taxpayer's federal
2  taxable income for the taxable year and that is
3  attributable to an endowment gift for which the
4  taxpayer receives a credit under the Illinois Gives
5  Tax Credit Act;
6  and by deducting from the total so obtained the following
7  amounts:
8  (E) The valuation limitation amount;
9  (F) An amount equal to the amount of any tax
10  imposed by this Act which was refunded to the taxpayer
11  and included in such total for the taxable year;
12  (G) An amount equal to all amounts included in
13  taxable income as modified by subparagraphs (A), (B),
14  (C) and (D) which are exempt from taxation by this
15  State either by reason of its statutes or Constitution
16  or by reason of the Constitution, treaties or statutes
17  of the United States; provided that, in the case of any
18  statute of this State that exempts income derived from
19  bonds or other obligations from the tax imposed under
20  this Act, the amount exempted shall be the interest
21  net of bond premium amortization;
22  (H) Any income of the partnership which
23  constitutes personal service income as defined in
24  Section 1348(b)(1) of the Internal Revenue Code (as in
25  effect December 31, 1981) or a reasonable allowance
26  for compensation paid or accrued for services rendered

 

 

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1  by partners to the partnership, whichever is greater;
2  this subparagraph (H) is exempt from the provisions of
3  Section 250;
4  (I) An amount equal to all amounts of income
5  distributable to an entity subject to the Personal
6  Property Tax Replacement Income Tax imposed by
7  subsections (c) and (d) of Section 201 of this Act
8  including amounts distributable to organizations
9  exempt from federal income tax by reason of Section
10  501(a) of the Internal Revenue Code; this subparagraph
11  (I) is exempt from the provisions of Section 250;
12  (J) With the exception of any amounts subtracted
13  under subparagraph (G), an amount equal to the sum of
14  all amounts disallowed as deductions by (i) Sections
15  171(a)(2) and 265(a)(2) of the Internal Revenue Code,
16  and all amounts of expenses allocable to interest and
17  disallowed as deductions by Section 265(a)(1) of the
18  Internal Revenue Code; and (ii) for taxable years
19  ending on or after August 13, 1999, Sections
20  171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
21  Internal Revenue Code, plus, (iii) for taxable years
22  ending on or after December 31, 2011, Section
23  45G(e)(3) of the Internal Revenue Code and, for
24  taxable years ending on or after December 31, 2008,
25  any amount included in gross income under Section 87
26  of the Internal Revenue Code; the provisions of this

 

 

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1  subparagraph are exempt from the provisions of Section
2  250;
3  (K) An amount equal to those dividends included in
4  such total which were paid by a corporation which
5  conducts business operations in a River Edge
6  Redevelopment Zone or zones created under the River
7  Edge Redevelopment Zone Act and conducts substantially
8  all of its operations from a River Edge Redevelopment
9  Zone or zones. This subparagraph (K) is exempt from
10  the provisions of Section 250;
11  (L) An amount equal to any contribution made to a
12  job training project established pursuant to the Real
13  Property Tax Increment Allocation Redevelopment Act;
14  (M) An amount equal to those dividends included in
15  such total that were paid by a corporation that
16  conducts business operations in a federally designated
17  Foreign Trade Zone or Sub-Zone and that is designated
18  a High Impact Business located in Illinois; provided
19  that dividends eligible for the deduction provided in
20  subparagraph (K) of paragraph (2) of this subsection
21  shall not be eligible for the deduction provided under
22  this subparagraph (M);
23  (N) An amount equal to the amount of the deduction
24  used to compute the federal income tax credit for
25  restoration of substantial amounts held under claim of
26  right for the taxable year pursuant to Section 1341 of

 

 

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1  the Internal Revenue Code;
2  (O) For taxable years 2001 and thereafter, for the
3  taxable year in which the bonus depreciation deduction
4  is taken on the taxpayer's federal income tax return
5  under subsection (k) of Section 168 of the Internal
6  Revenue Code and for each applicable taxable year
7  thereafter, an amount equal to "x", where:
8  (1) "y" equals the amount of the depreciation
9  deduction taken for the taxable year on the
10  taxpayer's federal income tax return on property
11  for which the bonus depreciation deduction was
12  taken in any year under subsection (k) of Section
13  168 of the Internal Revenue Code, but not
14  including the bonus depreciation deduction;
15  (2) for taxable years ending on or before
16  December 31, 2005, "x" equals "y" multiplied by 30
17  and then divided by 70 (or "y" multiplied by
18  0.429); and
19  (3) for taxable years ending after December
20  31, 2005:
21  (i) for property on which a bonus
22  depreciation deduction of 30% of the adjusted
23  basis was taken, "x" equals "y" multiplied by
24  30 and then divided by 70 (or "y" multiplied
25  by 0.429);
26  (ii) for property on which a bonus

 

 

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1  depreciation deduction of 50% of the adjusted
2  basis was taken, "x" equals "y" multiplied by
3  1.0;
4  (iii) for property on which a bonus
5  depreciation deduction of 100% of the adjusted
6  basis was taken in a taxable year ending on or
7  after December 31, 2021, "x" equals the
8  depreciation deduction that would be allowed
9  on that property if the taxpayer had made the
10  election under Section 168(k)(7) of the
11  Internal Revenue Code to not claim bonus
12  depreciation on that property; and
13  (iv) for property on which a bonus
14  depreciation deduction of a percentage other
15  than 30%, 50% or 100% of the adjusted basis
16  was taken in a taxable year ending on or after
17  December 31, 2021, "x" equals "y" multiplied
18  by 100 times the percentage bonus depreciation
19  on the property (that is, 100(bonus%)) and
20  then divided by 100 times 1 minus the
21  percentage bonus depreciation on the property
22  (that is, 100(1-bonus%)).
23  The aggregate amount deducted under this
24  subparagraph in all taxable years for any one piece of
25  property may not exceed the amount of the bonus
26  depreciation deduction taken on that property on the

 

 

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1  taxpayer's federal income tax return under subsection
2  (k) of Section 168 of the Internal Revenue Code. This
3  subparagraph (O) is exempt from the provisions of
4  Section 250;
5  (P) If the taxpayer sells, transfers, abandons, or
6  otherwise disposes of property for which the taxpayer
7  was required in any taxable year to make an addition
8  modification under subparagraph (D-5), then an amount
9  equal to that addition modification.
10  If the taxpayer continues to own property through
11  the last day of the last tax year for which a
12  subtraction is allowed with respect to that property
13  under subparagraph (O) and for which the taxpayer was
14  required in any taxable year to make an addition
15  modification under subparagraph (D-5), then an amount
16  equal to that addition modification.
17  The taxpayer is allowed to take the deduction
18  under this subparagraph only once with respect to any
19  one piece of property.
20  This subparagraph (P) is exempt from the
21  provisions of Section 250;
22  (Q) The amount of (i) any interest income (net of
23  the deductions allocable thereto) taken into account
24  for the taxable year with respect to a transaction
25  with a taxpayer that is required to make an addition
26  modification with respect to such transaction under

 

 

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1  Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2  203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3  the amount of such addition modification and (ii) any
4  income from intangible property (net of the deductions
5  allocable thereto) taken into account for the taxable
6  year with respect to a transaction with a taxpayer
7  that is required to make an addition modification with
8  respect to such transaction under Section
9  203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
10  203(d)(2)(D-8), but not to exceed the amount of such
11  addition modification. This subparagraph (Q) is exempt
12  from Section 250;
13  (R) An amount equal to the interest income taken
14  into account for the taxable year (net of the
15  deductions allocable thereto) with respect to
16  transactions with (i) a foreign person who would be a
17  member of the taxpayer's unitary business group but
18  for the fact that the foreign person's business
19  activity outside the United States is 80% or more of
20  that person's total business activity and (ii) for
21  taxable years ending on or after December 31, 2008, to
22  a person who would be a member of the same unitary
23  business group but for the fact that the person is
24  prohibited under Section 1501(a)(27) from being
25  included in the unitary business group because he or
26  she is ordinarily required to apportion business

 

 

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1  income under different subsections of Section 304, but
2  not to exceed the addition modification required to be
3  made for the same taxable year under Section
4  203(d)(2)(D-7) for interest paid, accrued, or
5  incurred, directly or indirectly, to the same person.
6  This subparagraph (R) is exempt from Section 250;
7  (S) An amount equal to the income from intangible
8  property taken into account for the taxable year (net
9  of the deductions allocable thereto) with respect to
10  transactions with (i) a foreign person who would be a
11  member of the taxpayer's unitary business group but
12  for the fact that the foreign person's business
13  activity outside the United States is 80% or more of
14  that person's total business activity and (ii) for
15  taxable years ending on or after December 31, 2008, to
16  a person who would be a member of the same unitary
17  business group but for the fact that the person is
18  prohibited under Section 1501(a)(27) from being
19  included in the unitary business group because he or
20  she is ordinarily required to apportion business
21  income under different subsections of Section 304, but
22  not to exceed the addition modification required to be
23  made for the same taxable year under Section
24  203(d)(2)(D-8) for intangible expenses and costs paid,
25  accrued, or incurred, directly or indirectly, to the
26  same person. This subparagraph (S) is exempt from

 

 

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1  Section 250;
2  (T) For taxable years ending on or after December
3  31, 2011, in the case of a taxpayer who was required to
4  add back any insurance premiums under Section
5  203(d)(2)(D-9), such taxpayer may elect to subtract
6  that part of a reimbursement received from the
7  insurance company equal to the amount of the expense
8  or loss (including expenses incurred by the insurance
9  company) that would have been taken into account as a
10  deduction for federal income tax purposes if the
11  expense or loss had been uninsured. If a taxpayer
12  makes the election provided for by this subparagraph
13  (T), the insurer to which the premiums were paid must
14  add back to income the amount subtracted by the
15  taxpayer pursuant to this subparagraph (T). This
16  subparagraph (T) is exempt from the provisions of
17  Section 250; and
18  (U) For taxable years beginning on or after
19  January 1, 2023, for any cannabis establishment
20  operating in this State and licensed under the
21  Cannabis Regulation and Tax Act or any cannabis
22  cultivation center or medical cannabis dispensing
23  organization operating in this State and licensed
24  under the Compassionate Use of Medical Cannabis
25  Program Act, an amount equal to the deductions that
26  were disallowed under Section 280E of the Internal

 

 

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1  Revenue Code for the taxable year and that would not be
2  added back under this subsection. The provisions of
3  this subparagraph (U) are exempt from the provisions
4  of Section 250.
5  (e) Gross income; adjusted gross income; taxable income.
6  (1) In general. Subject to the provisions of paragraph
7  (2) and subsection (b)(3), for purposes of this Section
8  and Section 803(e), a taxpayer's gross income, adjusted
9  gross income, or taxable income for the taxable year shall
10  mean the amount of gross income, adjusted gross income or
11  taxable income properly reportable for federal income tax
12  purposes for the taxable year under the provisions of the
13  Internal Revenue Code. Taxable income may be less than
14  zero. However, for taxable years ending on or after
15  December 31, 1986, net operating loss carryforwards from
16  taxable years ending prior to December 31, 1986, may not
17  exceed the sum of federal taxable income for the taxable
18  year before net operating loss deduction, plus the excess
19  of addition modifications over subtraction modifications
20  for the taxable year. For taxable years ending prior to
21  December 31, 1986, taxable income may never be an amount
22  in excess of the net operating loss for the taxable year as
23  defined in subsections (c) and (d) of Section 172 of the
24  Internal Revenue Code, provided that when taxable income
25  of a corporation (other than a Subchapter S corporation),

 

 

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1  trust, or estate is less than zero and addition
2  modifications, other than those provided by subparagraph
3  (E) of paragraph (2) of subsection (b) for corporations or
4  subparagraph (E) of paragraph (2) of subsection (c) for
5  trusts and estates, exceed subtraction modifications, an
6  addition modification must be made under those
7  subparagraphs for any other taxable year to which the
8  taxable income less than zero (net operating loss) is
9  applied under Section 172 of the Internal Revenue Code or
10  under subparagraph (E) of paragraph (2) of this subsection
11  (e) applied in conjunction with Section 172 of the
12  Internal Revenue Code.
13  (2) Special rule. For purposes of paragraph (1) of
14  this subsection, the taxable income properly reportable
15  for federal income tax purposes shall mean:
16  (A) Certain life insurance companies. In the case
17  of a life insurance company subject to the tax imposed
18  by Section 801 of the Internal Revenue Code, life
19  insurance company taxable income, plus the amount of
20  distribution from pre-1984 policyholder surplus
21  accounts as calculated under Section 815a of the
22  Internal Revenue Code;
23  (B) Certain other insurance companies. In the case
24  of mutual insurance companies subject to the tax
25  imposed by Section 831 of the Internal Revenue Code,
26  insurance company taxable income;

 

 

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1  (C) Regulated investment companies. In the case of
2  a regulated investment company subject to the tax
3  imposed by Section 852 of the Internal Revenue Code,
4  investment company taxable income;
5  (D) Real estate investment trusts. In the case of
6  a real estate investment trust subject to the tax
7  imposed by Section 857 of the Internal Revenue Code,
8  real estate investment trust taxable income;
9  (E) Consolidated corporations. In the case of a
10  corporation which is a member of an affiliated group
11  of corporations filing a consolidated income tax
12  return for the taxable year for federal income tax
13  purposes, taxable income determined as if such
14  corporation had filed a separate return for federal
15  income tax purposes for the taxable year and each
16  preceding taxable year for which it was a member of an
17  affiliated group. For purposes of this subparagraph,
18  the taxpayer's separate taxable income shall be
19  determined as if the election provided by Section
20  243(b)(2) of the Internal Revenue Code had been in
21  effect for all such years;
22  (F) Cooperatives. In the case of a cooperative
23  corporation or association, the taxable income of such
24  organization determined in accordance with the
25  provisions of Section 1381 through 1388 of the
26  Internal Revenue Code, but without regard to the

 

 

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1  prohibition against offsetting losses from patronage
2  activities against income from nonpatronage
3  activities; except that a cooperative corporation or
4  association may make an election to follow its federal
5  income tax treatment of patronage losses and
6  nonpatronage losses. In the event such election is
7  made, such losses shall be computed and carried over
8  in a manner consistent with subsection (a) of Section
9  207 of this Act and apportioned by the apportionment
10  factor reported by the cooperative on its Illinois
11  income tax return filed for the taxable year in which
12  the losses are incurred. The election shall be
13  effective for all taxable years with original returns
14  due on or after the date of the election. In addition,
15  the cooperative may file an amended return or returns,
16  as allowed under this Act, to provide that the
17  election shall be effective for losses incurred or
18  carried forward for taxable years occurring prior to
19  the date of the election. Once made, the election may
20  only be revoked upon approval of the Director. The
21  Department shall adopt rules setting forth
22  requirements for documenting the elections and any
23  resulting Illinois net loss and the standards to be
24  used by the Director in evaluating requests to revoke
25  elections. Public Act 96-932 is declaratory of
26  existing law;

 

 

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1  (G) Subchapter S corporations. In the case of: (i)
2  a Subchapter S corporation for which there is in
3  effect an election for the taxable year under Section
4  1362 of the Internal Revenue Code, the taxable income
5  of such corporation determined in accordance with
6  Section 1363(b) of the Internal Revenue Code, except
7  that taxable income shall take into account those
8  items which are required by Section 1363(b)(1) of the
9  Internal Revenue Code to be separately stated; and
10  (ii) a Subchapter S corporation for which there is in
11  effect a federal election to opt out of the provisions
12  of the Subchapter S Revision Act of 1982 and have
13  applied instead the prior federal Subchapter S rules
14  as in effect on July 1, 1982, the taxable income of
15  such corporation determined in accordance with the
16  federal Subchapter S rules as in effect on July 1,
17  1982; and
18  (H) Partnerships. In the case of a partnership,
19  taxable income determined in accordance with Section
20  703 of the Internal Revenue Code, except that taxable
21  income shall take into account those items which are
22  required by Section 703(a)(1) to be separately stated
23  but which would be taken into account by an individual
24  in calculating his taxable income.
25  (3) Recapture of business expenses on disposition of
26  asset or business. Notwithstanding any other law to the

 

 

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1  contrary, if in prior years income from an asset or
2  business has been classified as business income and in a
3  later year is demonstrated to be non-business income, then
4  all expenses, without limitation, deducted in such later
5  year and in the 2 immediately preceding taxable years
6  related to that asset or business that generated the
7  non-business income shall be added back and recaptured as
8  business income in the year of the disposition of the
9  asset or business. Such amount shall be apportioned to
10  Illinois using the greater of the apportionment fraction
11  computed for the business under Section 304 of this Act
12  for the taxable year or the average of the apportionment
13  fractions computed for the business under Section 304 of
14  this Act for the taxable year and for the 2 immediately
15  preceding taxable years.
16  (f) Valuation limitation amount.
17  (1) In general. The valuation limitation amount
18  referred to in subsections (a)(2)(G), (c)(2)(I) and
19  (d)(2)(E) is an amount equal to:
20  (A) The sum of the pre-August 1, 1969 appreciation
21  amounts (to the extent consisting of gain reportable
22  under the provisions of Section 1245 or 1250 of the
23  Internal Revenue Code) for all property in respect of
24  which such gain was reported for the taxable year;
25  plus

 

 

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1  (B) The lesser of (i) the sum of the pre-August 1,
2  1969 appreciation amounts (to the extent consisting of
3  capital gain) for all property in respect of which
4  such gain was reported for federal income tax purposes
5  for the taxable year, or (ii) the net capital gain for
6  the taxable year, reduced in either case by any amount
7  of such gain included in the amount determined under
8  subsection (a)(2)(F) or (c)(2)(H).
9  (2) Pre-August 1, 1969 appreciation amount.
10  (A) If the fair market value of property referred
11  to in paragraph (1) was readily ascertainable on
12  August 1, 1969, the pre-August 1, 1969 appreciation
13  amount for such property is the lesser of (i) the
14  excess of such fair market value over the taxpayer's
15  basis (for determining gain) for such property on that
16  date (determined under the Internal Revenue Code as in
17  effect on that date), or (ii) the total gain realized
18  and reportable for federal income tax purposes in
19  respect of the sale, exchange or other disposition of
20  such property.
21  (B) If the fair market value of property referred
22  to in paragraph (1) was not readily ascertainable on
23  August 1, 1969, the pre-August 1, 1969 appreciation
24  amount for such property is that amount which bears
25  the same ratio to the total gain reported in respect of
26  the property for federal income tax purposes for the

 

 

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1  taxable year, as the number of full calendar months in
2  that part of the taxpayer's holding period for the
3  property ending July 31, 1969 bears to the number of
4  full calendar months in the taxpayer's entire holding
5  period for the property.
6  (C) The Department shall prescribe such
7  regulations as may be necessary to carry out the
8  purposes of this paragraph.
9  (g) Double deductions. Unless specifically provided
10  otherwise, nothing in this Section shall permit the same item
11  to be deducted more than once.
12  (h) Legislative intention. Except as expressly provided by
13  this Section there shall be no modifications or limitations on
14  the amounts of income, gain, loss or deduction taken into
15  account in determining gross income, adjusted gross income or
16  taxable income for federal income tax purposes for the taxable
17  year, or in the amount of such items entering into the
18  computation of base income and net income under this Act for
19  such taxable year, whether in respect of property values as of
20  August 1, 1969 or otherwise.
21  (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
22  102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
23  12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; 103-592,
24  Article 10, Section 10-900, eff. 6-7-24; 103-592, Article 170,

 

 

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1  Section 170-90, eff. 6-7-24; 103-605, eff. 7-1-24; 103-647,
2  eff. 7-1-24; revised 8-20-24.)

 

 

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