Illinois 2025-2026 Regular Session

Illinois House Bill HB3124 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3124 Introduced , by Rep. Blaine Wilhour SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 from Ch. 120, par. 2-203 Amends the Illinois Income Tax Act. Provides that the amendatory Act may be referred to as the Reshore Our Supply Chains Tax Reform Act. In specified provisions concerning base income, provides that a taxpayer may claim a depreciation deduction for federal income tax purposes. LRB104 10028 HLH 20099 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3124 Introduced , by Rep. Blaine Wilhour SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/203 from Ch. 120, par. 2-203 Amends the Illinois Income Tax Act. Provides that the amendatory Act may be referred to as the Reshore Our Supply Chains Tax Reform Act. In specified provisions concerning base income, provides that a taxpayer may claim a depreciation deduction for federal income tax purposes. LRB104 10028 HLH 20099 b LRB104 10028 HLH 20099 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3124 Introduced , by Rep. Blaine Wilhour SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/203 from Ch. 120, par. 2-203
4	4	35 ILCS 5/203 from Ch. 120, par. 2-203
5	5	Amends the Illinois Income Tax Act. Provides that the amendatory Act may be referred to as the Reshore Our Supply Chains Tax Reform Act. In specified provisions concerning base income, provides that a taxpayer may claim a depreciation deduction for federal income tax purposes.
6	6	LRB104 10028 HLH 20099 b LRB104 10028 HLH 20099 b
7	7	LRB104 10028 HLH 20099 b
8	8	A BILL FOR
9	9	HB3124LRB104 10028 HLH 20099 b HB3124 LRB104 10028 HLH 20099 b
10	10	HB3124 LRB104 10028 HLH 20099 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. This Act may be referred to as the Reshore Our
15	15	5 Supply Chains Tax Reform Act.
16	16	6 Section 5. The Illinois Income Tax Act is amended by
17	17	7 changing Section 203 as follows:
18	18	8 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
19	19	9 Sec. 203. Base income defined.
20	20	10 (a) Individuals.
21	21	11 (1) In general. In the case of an individual, base
22	22	12 income means an amount equal to the taxpayer's adjusted
23	23	13 gross income for the taxable year as modified by paragraph
24	24	14 (2).
25	25	15 (2) Modifications. The adjusted gross income referred
26	26	16 to in paragraph (1) shall be modified by adding thereto
27	27	17 the sum of the following amounts:
28	28	18 (A) An amount equal to all amounts paid or accrued
29	29	19 to the taxpayer as interest or dividends during the
30	30	20 taxable year to the extent excluded from gross income
31	31	21 in the computation of adjusted gross income, except
32	32	22 stock dividends of qualified public utilities
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36	36	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3124 Introduced , by Rep. Blaine Wilhour SYNOPSIS AS INTRODUCED:
37	37	35 ILCS 5/203 from Ch. 120, par. 2-203 35 ILCS 5/203 from Ch. 120, par. 2-203
38	38	35 ILCS 5/203 from Ch. 120, par. 2-203
39	39	Amends the Illinois Income Tax Act. Provides that the amendatory Act may be referred to as the Reshore Our Supply Chains Tax Reform Act. In specified provisions concerning base income, provides that a taxpayer may claim a depreciation deduction for federal income tax purposes.
40	40	LRB104 10028 HLH 20099 b LRB104 10028 HLH 20099 b
41	41	LRB104 10028 HLH 20099 b
42	42	A BILL FOR
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67	67	1 described in Section 305(e) of the Internal Revenue
68	68	2 Code;
69	69	3 (B) An amount equal to the amount of tax imposed by
70	70	4 this Act to the extent deducted from gross income in
71	71	5 the computation of adjusted gross income for the
72	72	6 taxable year;
73	73	7 (C) An amount equal to the amount received during
74	74	8 the taxable year as a recovery or refund of real
75	75	9 property taxes paid with respect to the taxpayer's
76	76	10 principal residence under the Revenue Act of 1939 and
77	77	11 for which a deduction was previously taken under
78	78	12 subparagraph (L) of this paragraph (2) prior to July
79	79	13 1, 1991, the retrospective application date of Article
80	80	14 4 of Public Act 87-17. In the case of multi-unit or
81	81	15 multi-use structures and farm dwellings, the taxes on
82	82	16 the taxpayer's principal residence shall be that
83	83	17 portion of the total taxes for the entire property
84	84	18 which is attributable to such principal residence;
85	85	19 (D) An amount equal to the amount of the capital
86	86	20 gain deduction allowable under the Internal Revenue
87	87	21 Code, to the extent deducted from gross income in the
88	88	22 computation of adjusted gross income;
89	89	23 (D-5) An amount, to the extent not included in
90	90	24 adjusted gross income, equal to the amount of money
91	91	25 withdrawn by the taxpayer in the taxable year from a
92	92	26 medical care savings account and the interest earned
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103	103	1 on the account in the taxable year of a withdrawal
104	104	2 pursuant to subsection (b) of Section 20 of the
105	105	3 Medical Care Savings Account Act or subsection (b) of
106	106	4 Section 20 of the Medical Care Savings Account Act of
107	107	5 2000;
108	108	6 (D-10) For taxable years ending after December 31,
109	109	7 1997, an amount equal to any eligible remediation
110	110	8 costs that the individual deducted in computing
111	111	9 adjusted gross income and for which the individual
112	112	10 claims a credit under subsection (l) of Section 201;
113	113	11 (D-15) For taxable years 2001 and thereafter, an
114	114	12 amount equal to the bonus depreciation deduction taken
115	115	13 on the taxpayer's federal income tax return for the
116	116	14 taxable year under subsection (k) of Section 168 of
117	117	15 the Internal Revenue Code;
118	118	16 (D-16) If the taxpayer sells, transfers, abandons,
119	119	17 or otherwise disposes of property for which the
120	120	18 taxpayer was required in any taxable year to make an
121	121	19 addition modification under subparagraph (D-15), then
122	122	20 an amount equal to the aggregate amount of the
123	123	21 deductions taken in all taxable years under
124	124	22 subparagraph (Z) with respect to that property.
125	125	23 If the taxpayer continues to own property through
126	126	24 the last day of the last tax year for which a taxpayer
127	127	25 may claim a depreciation deduction for federal income
128	128	26 tax purposes a subtraction is allowed with respect to
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139	139	1 that property under subparagraph (Z) and for which the
140	140	2 taxpayer was allowed in any taxable year to make a
141	141	3 subtraction modification under subparagraph (Z), then
142	142	4 an amount equal to that subtraction modification.
143	143	5 The taxpayer is required to make the addition
144	144	6 modification under this subparagraph only once with
145	145	7 respect to any one piece of property;
146	146	8 (D-17) An amount equal to the amount otherwise
147	147	9 allowed as a deduction in computing base income for
148	148	10 interest paid, accrued, or incurred, directly or
149	149	11 indirectly, (i) for taxable years ending on or after
150	150	12 December 31, 2004, to a foreign person who would be a
151	151	13 member of the same unitary business group but for the
152	152	14 fact that foreign person's business activity outside
153	153	15 the United States is 80% or more of the foreign
154	154	16 person's total business activity and (ii) for taxable
155	155	17 years ending on or after December 31, 2008, to a person
156	156	18 who would be a member of the same unitary business
157	157	19 group but for the fact that the person is prohibited
158	158	20 under Section 1501(a)(27) from being included in the
159	159	21 unitary business group because he or she is ordinarily
160	160	22 required to apportion business income under different
161	161	23 subsections of Section 304. The addition modification
162	162	24 required by this subparagraph shall be reduced to the
163	163	25 extent that dividends were included in base income of
164	164	26 the unitary group for the same taxable year and
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175	175	1 received by the taxpayer or by a member of the
176	176	2 taxpayer's unitary business group (including amounts
177	177	3 included in gross income under Sections 951 through
178	178	4 964 of the Internal Revenue Code and amounts included
179	179	5 in gross income under Section 78 of the Internal
180	180	6 Revenue Code) with respect to the stock of the same
181	181	7 person to whom the interest was paid, accrued, or
182	182	8 incurred.
183	183	9 This paragraph shall not apply to the following:
184	184	10 (i) an item of interest paid, accrued, or
185	185	11 incurred, directly or indirectly, to a person who
186	186	12 is subject in a foreign country or state, other
187	187	13 than a state which requires mandatory unitary
188	188	14 reporting, to a tax on or measured by net income
189	189	15 with respect to such interest; or
190	190	16 (ii) an item of interest paid, accrued, or
191	191	17 incurred, directly or indirectly, to a person if
192	192	18 the taxpayer can establish, based on a
193	193	19 preponderance of the evidence, both of the
194	194	20 following:
195	195	21 (a) the person, during the same taxable
196	196	22 year, paid, accrued, or incurred, the interest
197	197	23 to a person that is not a related member, and
198	198	24 (b) the transaction giving rise to the
199	199	25 interest expense between the taxpayer and the
200	200	26 person did not have as a principal purpose the
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211	211	1 avoidance of Illinois income tax, and is paid
212	212	2 pursuant to a contract or agreement that
213	213	3 reflects an arm's-length interest rate and
214	214	4 terms; or
215	215	5 (iii) the taxpayer can establish, based on
216	216	6 clear and convincing evidence, that the interest
217	217	7 paid, accrued, or incurred relates to a contract
218	218	8 or agreement entered into at arm's-length rates
219	219	9 and terms and the principal purpose for the
220	220	10 payment is not federal or Illinois tax avoidance;
221	221	11 or
222	222	12 (iv) an item of interest paid, accrued, or
223	223	13 incurred, directly or indirectly, to a person if
224	224	14 the taxpayer establishes by clear and convincing
225	225	15 evidence that the adjustments are unreasonable; or
226	226	16 if the taxpayer and the Director agree in writing
227	227	17 to the application or use of an alternative method
228	228	18 of apportionment under Section 304(f).
229	229	19 Nothing in this subsection shall preclude the
230	230	20 Director from making any other adjustment
231	231	21 otherwise allowed under Section 404 of this Act
232	232	22 for any tax year beginning after the effective
233	233	23 date of this amendment provided such adjustment is
234	234	24 made pursuant to regulation adopted by the
235	235	25 Department and such regulations provide methods
236	236	26 and standards by which the Department will utilize
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247	247	1 its authority under Section 404 of this Act;
248	248	2 (D-18) An amount equal to the amount of intangible
249	249	3 expenses and costs otherwise allowed as a deduction in
250	250	4 computing base income, and that were paid, accrued, or
251	251	5 incurred, directly or indirectly, (i) for taxable
252	252	6 years ending on or after December 31, 2004, to a
253	253	7 foreign person who would be a member of the same
254	254	8 unitary business group but for the fact that the
255	255	9 foreign person's business activity outside the United
256	256	10 States is 80% or more of that person's total business
257	257	11 activity and (ii) for taxable years ending on or after
258	258	12 December 31, 2008, to a person who would be a member of
259	259	13 the same unitary business group but for the fact that
260	260	14 the person is prohibited under Section 1501(a)(27)
261	261	15 from being included in the unitary business group
262	262	16 because he or she is ordinarily required to apportion
263	263	17 business income under different subsections of Section
264	264	18 304. The addition modification required by this
265	265	19 subparagraph shall be reduced to the extent that
266	266	20 dividends were included in base income of the unitary
267	267	21 group for the same taxable year and received by the
268	268	22 taxpayer or by a member of the taxpayer's unitary
269	269	23 business group (including amounts included in gross
270	270	24 income under Sections 951 through 964 of the Internal
271	271	25 Revenue Code and amounts included in gross income
272	272	26 under Section 78 of the Internal Revenue Code) with
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283	283	1 respect to the stock of the same person to whom the
284	284	2 intangible expenses and costs were directly or
285	285	3 indirectly paid, incurred, or accrued. The preceding
286	286	4 sentence does not apply to the extent that the same
287	287	5 dividends caused a reduction to the addition
288	288	6 modification required under Section 203(a)(2)(D-17) of
289	289	7 this Act. As used in this subparagraph, the term
290	290	8 "intangible expenses and costs" includes (1) expenses,
291	291	9 losses, and costs for, or related to, the direct or
292	292	10 indirect acquisition, use, maintenance or management,
293	293	11 ownership, sale, exchange, or any other disposition of
294	294	12 intangible property; (2) losses incurred, directly or
295	295	13 indirectly, from factoring transactions or discounting
296	296	14 transactions; (3) royalty, patent, technical, and
297	297	15 copyright fees; (4) licensing fees; and (5) other
298	298	16 similar expenses and costs. For purposes of this
299	299	17 subparagraph, "intangible property" includes patents,
300	300	18 patent applications, trade names, trademarks, service
301	301	19 marks, copyrights, mask works, trade secrets, and
302	302	20 similar types of intangible assets.
303	303	21 This paragraph shall not apply to the following:
304	304	22 (i) any item of intangible expenses or costs
305	305	23 paid, accrued, or incurred, directly or
306	306	24 indirectly, from a transaction with a person who
307	307	25 is subject in a foreign country or state, other
308	308	26 than a state which requires mandatory unitary
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319	319	1 reporting, to a tax on or measured by net income
320	320	2 with respect to such item; or
321	321	3 (ii) any item of intangible expense or cost
322	322	4 paid, accrued, or incurred, directly or
323	323	5 indirectly, if the taxpayer can establish, based
324	324	6 on a preponderance of the evidence, both of the
325	325	7 following:
326	326	8 (a) the person during the same taxable
327	327	9 year paid, accrued, or incurred, the
328	328	10 intangible expense or cost to a person that is
329	329	11 not a related member, and
330	330	12 (b) the transaction giving rise to the
331	331	13 intangible expense or cost between the
332	332	14 taxpayer and the person did not have as a
333	333	15 principal purpose the avoidance of Illinois
334	334	16 income tax, and is paid pursuant to a contract
335	335	17 or agreement that reflects arm's-length terms;
336	336	18 or
337	337	19 (iii) any item of intangible expense or cost
338	338	20 paid, accrued, or incurred, directly or
339	339	21 indirectly, from a transaction with a person if
340	340	22 the taxpayer establishes by clear and convincing
341	341	23 evidence, that the adjustments are unreasonable;
342	342	24 or if the taxpayer and the Director agree in
343	343	25 writing to the application or use of an
344	344	26 alternative method of apportionment under Section
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355	355	1 304(f);
356	356	2 Nothing in this subsection shall preclude the
357	357	3 Director from making any other adjustment
358	358	4 otherwise allowed under Section 404 of this Act
359	359	5 for any tax year beginning after the effective
360	360	6 date of this amendment provided such adjustment is
361	361	7 made pursuant to regulation adopted by the
362	362	8 Department and such regulations provide methods
363	363	9 and standards by which the Department will utilize
364	364	10 its authority under Section 404 of this Act;
365	365	11 (D-19) For taxable years ending on or after
366	366	12 December 31, 2008, an amount equal to the amount of
367	367	13 insurance premium expenses and costs otherwise allowed
368	368	14 as a deduction in computing base income, and that were
369	369	15 paid, accrued, or incurred, directly or indirectly, to
370	370	16 a person who would be a member of the same unitary
371	371	17 business group but for the fact that the person is
372	372	18 prohibited under Section 1501(a)(27) from being
373	373	19 included in the unitary business group because he or
374	374	20 she is ordinarily required to apportion business
375	375	21 income under different subsections of Section 304. The
376	376	22 addition modification required by this subparagraph
377	377	23 shall be reduced to the extent that dividends were
378	378	24 included in base income of the unitary group for the
379	379	25 same taxable year and received by the taxpayer or by a
380	380	26 member of the taxpayer's unitary business group
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391	391	1 (including amounts included in gross income under
392	392	2 Sections 951 through 964 of the Internal Revenue Code
393	393	3 and amounts included in gross income under Section 78
394	394	4 of the Internal Revenue Code) with respect to the
395	395	5 stock of the same person to whom the premiums and costs
396	396	6 were directly or indirectly paid, incurred, or
397	397	7 accrued. The preceding sentence does not apply to the
398	398	8 extent that the same dividends caused a reduction to
399	399	9 the addition modification required under Section
400	400	10 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
401	401	11 Act;
402	402	12 (D-20) For taxable years beginning on or after
403	403	13 January 1, 2002 and ending on or before December 31,
404	404	14 2006, in the case of a distribution from a qualified
405	405	15 tuition program under Section 529 of the Internal
406	406	16 Revenue Code, other than (i) a distribution from a
407	407	17 College Savings Pool created under Section 16.5 of the
408	408	18 State Treasurer Act or (ii) a distribution from the
409	409	19 Illinois Prepaid Tuition Trust Fund, an amount equal
410	410	20 to the amount excluded from gross income under Section
411	411	21 529(c)(3)(B). For taxable years beginning on or after
412	412	22 January 1, 2007, in the case of a distribution from a
413	413	23 qualified tuition program under Section 529 of the
414	414	24 Internal Revenue Code, other than (i) a distribution
415	415	25 from a College Savings Pool created under Section 16.5
416	416	26 of the State Treasurer Act, (ii) a distribution from
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427	427	1 the Illinois Prepaid Tuition Trust Fund, or (iii) a
428	428	2 distribution from a qualified tuition program under
429	429	3 Section 529 of the Internal Revenue Code that (I)
430	430	4 adopts and determines that its offering materials
431	431	5 comply with the College Savings Plans Network's
432	432	6 disclosure principles and (II) has made reasonable
433	433	7 efforts to inform in-state residents of the existence
434	434	8 of in-state qualified tuition programs by informing
435	435	9 Illinois residents directly and, where applicable, to
436	436	10 inform financial intermediaries distributing the
437	437	11 program to inform in-state residents of the existence
438	438	12 of in-state qualified tuition programs at least
439	439	13 annually, an amount equal to the amount excluded from
440	440	14 gross income under Section 529(c)(3)(B).
441	441	15 For the purposes of this subparagraph (D-20), a
442	442	16 qualified tuition program has made reasonable efforts
443	443	17 if it makes disclosures (which may use the term
444	444	18 "in-state program" or "in-state plan" and need not
445	445	19 specifically refer to Illinois or its qualified
446	446	20 programs by name) (i) directly to prospective
447	447	21 participants in its offering materials or makes a
448	448	22 public disclosure, such as a website posting; and (ii)
449	449	23 where applicable, to intermediaries selling the
450	450	24 out-of-state program in the same manner that the
451	451	25 out-of-state program distributes its offering
452	452	26 materials;
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463	463	1 (D-20.5) For taxable years beginning on or after
464	464	2 January 1, 2018, in the case of a distribution from a
465	465	3 qualified ABLE program under Section 529A of the
466	466	4 Internal Revenue Code, other than a distribution from
467	467	5 a qualified ABLE program created under Section 16.6 of
468	468	6 the State Treasurer Act, an amount equal to the amount
469	469	7 excluded from gross income under Section 529A(c)(1)(B)
470	470	8 of the Internal Revenue Code;
471	471	9 (D-21) For taxable years beginning on or after
472	472	10 January 1, 2007, in the case of transfer of moneys from
473	473	11 a qualified tuition program under Section 529 of the
474	474	12 Internal Revenue Code that is administered by the
475	475	13 State to an out-of-state program, an amount equal to
476	476	14 the amount of moneys previously deducted from base
477	477	15 income under subsection (a)(2)(Y) of this Section;
478	478	16 (D-21.5) For taxable years beginning on or after
479	479	17 January 1, 2018, in the case of the transfer of moneys
480	480	18 from a qualified tuition program under Section 529 or
481	481	19 a qualified ABLE program under Section 529A of the
482	482	20 Internal Revenue Code that is administered by this
483	483	21 State to an ABLE account established under an
484	484	22 out-of-state ABLE account program, an amount equal to
485	485	23 the contribution component of the transferred amount
486	486	24 that was previously deducted from base income under
487	487	25 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
488	488	26 Section;
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499	499	1 (D-22) For taxable years beginning on or after
500	500	2 January 1, 2009, and prior to January 1, 2018, in the
501	501	3 case of a nonqualified withdrawal or refund of moneys
502	502	4 from a qualified tuition program under Section 529 of
503	503	5 the Internal Revenue Code administered by the State
504	504	6 that is not used for qualified expenses at an eligible
505	505	7 education institution, an amount equal to the
506	506	8 contribution component of the nonqualified withdrawal
507	507	9 or refund that was previously deducted from base
508	508	10 income under subsection (a)(2)(y) of this Section,
509	509	11 provided that the withdrawal or refund did not result
510	510	12 from the beneficiary's death or disability. For
511	511	13 taxable years beginning on or after January 1, 2018:
512	512	14 (1) in the case of a nonqualified withdrawal or
513	513	15 refund, as defined under Section 16.5 of the State
514	514	16 Treasurer Act, of moneys from a qualified tuition
515	515	17 program under Section 529 of the Internal Revenue Code
516	516	18 administered by the State, an amount equal to the
517	517	19 contribution component of the nonqualified withdrawal
518	518	20 or refund that was previously deducted from base
519	519	21 income under subsection (a)(2)(Y) of this Section, and
520	520	22 (2) in the case of a nonqualified withdrawal or refund
521	521	23 from a qualified ABLE program under Section 529A of
522	522	24 the Internal Revenue Code administered by the State
523	523	25 that is not used for qualified disability expenses, an
524	524	26 amount equal to the contribution component of the
525	525
526	526
527	527
528	528
529	529
530	530	HB3124 - 14 - LRB104 10028 HLH 20099 b
531	531
532	532
533	533	HB3124- 15 -LRB104 10028 HLH 20099 b HB3124 - 15 - LRB104 10028 HLH 20099 b
534	534	HB3124 - 15 - LRB104 10028 HLH 20099 b
535	535	1 nonqualified withdrawal or refund that was previously
536	536	2 deducted from base income under subsection (a)(2)(HH)
537	537	3 of this Section;
538	538	4 (D-23) An amount equal to the credit allowable to
539	539	5 the taxpayer under Section 218(a) of this Act,
540	540	6 determined without regard to Section 218(c) of this
541	541	7 Act;
542	542	8 (D-24) For taxable years ending on or after
543	543	9 December 31, 2017, an amount equal to the deduction
544	544	10 allowed under Section 199 of the Internal Revenue Code
545	545	11 for the taxable year;
546	546	12 (D-25) In the case of a resident, an amount equal
547	547	13 to the amount of tax for which a credit is allowed
548	548	14 pursuant to Section 201(p)(7) of this Act;
549	549	15 and by deducting from the total so obtained the sum of the
550	550	16 following amounts:
551	551	17 (E) For taxable years ending before December 31,
552	552	18 2001, any amount included in such total in respect of
553	553	19 any compensation (including but not limited to any
554	554	20 compensation paid or accrued to a serviceman while a
555	555	21 prisoner of war or missing in action) paid to a
556	556	22 resident by reason of being on active duty in the Armed
557	557	23 Forces of the United States and in respect of any
558	558	24 compensation paid or accrued to a resident who as a
559	559	25 governmental employee was a prisoner of war or missing
560	560	26 in action, and in respect of any compensation paid to a
561	561
562	562
563	563
564	564
565	565
566	566	HB3124 - 15 - LRB104 10028 HLH 20099 b
567	567
568	568
569	569	HB3124- 16 -LRB104 10028 HLH 20099 b HB3124 - 16 - LRB104 10028 HLH 20099 b
570	570	HB3124 - 16 - LRB104 10028 HLH 20099 b
571	571	1 resident in 1971 or thereafter for annual training
572	572	2 performed pursuant to Sections 502 and 503, Title 32,
573	573	3 United States Code as a member of the Illinois
574	574	4 National Guard or, beginning with taxable years ending
575	575	5 on or after December 31, 2007, the National Guard of
576	576	6 any other state. For taxable years ending on or after
577	577	7 December 31, 2001, any amount included in such total
578	578	8 in respect of any compensation (including but not
579	579	9 limited to any compensation paid or accrued to a
580	580	10 serviceman while a prisoner of war or missing in
581	581	11 action) paid to a resident by reason of being a member
582	582	12 of any component of the Armed Forces of the United
583	583	13 States and in respect of any compensation paid or
584	584	14 accrued to a resident who as a governmental employee
585	585	15 was a prisoner of war or missing in action, and in
586	586	16 respect of any compensation paid to a resident in 2001
587	587	17 or thereafter by reason of being a member of the
588	588	18 Illinois National Guard or, beginning with taxable
589	589	19 years ending on or after December 31, 2007, the
590	590	20 National Guard of any other state. The provisions of
591	591	21 this subparagraph (E) are exempt from the provisions
592	592	22 of Section 250;
593	593	23 (F) An amount equal to all amounts included in
594	594	24 such total pursuant to the provisions of Sections
595	595	25 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
596	596	26 408 of the Internal Revenue Code, or included in such
597	597
598	598
599	599
600	600
601	601
602	602	HB3124 - 16 - LRB104 10028 HLH 20099 b
603	603
604	604
605	605	HB3124- 17 -LRB104 10028 HLH 20099 b HB3124 - 17 - LRB104 10028 HLH 20099 b
606	606	HB3124 - 17 - LRB104 10028 HLH 20099 b
607	607	1 total as distributions under the provisions of any
608	608	2 retirement or disability plan for employees of any
609	609	3 governmental agency or unit, or retirement payments to
610	610	4 retired partners, which payments are excluded in
611	611	5 computing net earnings from self employment by Section
612	612	6 1402 of the Internal Revenue Code and regulations
613	613	7 adopted pursuant thereto;
614	614	8 (G) The valuation limitation amount;
615	615	9 (H) An amount equal to the amount of any tax
616	616	10 imposed by this Act which was refunded to the taxpayer
617	617	11 and included in such total for the taxable year;
618	618	12 (I) An amount equal to all amounts included in
619	619	13 such total pursuant to the provisions of Section 111
620	620	14 of the Internal Revenue Code as a recovery of items
621	621	15 previously deducted from adjusted gross income in the
622	622	16 computation of taxable income;
623	623	17 (J) An amount equal to those dividends included in
624	624	18 such total which were paid by a corporation which
625	625	19 conducts business operations in a River Edge
626	626	20 Redevelopment Zone or zones created under the River
627	627	21 Edge Redevelopment Zone Act, and conducts
628	628	22 substantially all of its operations in a River Edge
629	629	23 Redevelopment Zone or zones. This subparagraph (J) is
630	630	24 exempt from the provisions of Section 250;
631	631	25 (K) An amount equal to those dividends included in
632	632	26 such total that were paid by a corporation that
633	633
634	634
635	635
636	636
637	637
638	638	HB3124 - 17 - LRB104 10028 HLH 20099 b
639	639
640	640
641	641	HB3124- 18 -LRB104 10028 HLH 20099 b HB3124 - 18 - LRB104 10028 HLH 20099 b
642	642	HB3124 - 18 - LRB104 10028 HLH 20099 b
643	643	1 conducts business operations in a federally designated
644	644	2 Foreign Trade Zone or Sub-Zone and that is designated
645	645	3 a High Impact Business located in Illinois; provided
646	646	4 that dividends eligible for the deduction provided in
647	647	5 subparagraph (J) of paragraph (2) of this subsection
648	648	6 shall not be eligible for the deduction provided under
649	649	7 this subparagraph (K);
650	650	8 (L) For taxable years ending after December 31,
651	651	9 1983, an amount equal to all social security benefits
652	652	10 and railroad retirement benefits included in such
653	653	11 total pursuant to Sections 72(r) and 86 of the
654	654	12 Internal Revenue Code;
655	655	13 (M) With the exception of any amounts subtracted
656	656	14 under subparagraph (N), an amount equal to the sum of
657	657	15 all amounts disallowed as deductions by (i) Sections
658	658	16 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
659	659	17 and all amounts of expenses allocable to interest and
660	660	18 disallowed as deductions by Section 265(a)(1) of the
661	661	19 Internal Revenue Code; and (ii) for taxable years
662	662	20 ending on or after August 13, 1999, Sections
663	663	21 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
664	664	22 Internal Revenue Code, plus, for taxable years ending
665	665	23 on or after December 31, 2011, Section 45G(e)(3) of
666	666	24 the Internal Revenue Code and, for taxable years
667	667	25 ending on or after December 31, 2008, any amount
668	668	26 included in gross income under Section 87 of the
669	669
670	670
671	671
672	672
673	673
674	674	HB3124 - 18 - LRB104 10028 HLH 20099 b
675	675
676	676
677	677	HB3124- 19 -LRB104 10028 HLH 20099 b HB3124 - 19 - LRB104 10028 HLH 20099 b
678	678	HB3124 - 19 - LRB104 10028 HLH 20099 b
679	679	1 Internal Revenue Code; the provisions of this
680	680	2 subparagraph are exempt from the provisions of Section
681	681	3 250;
682	682	4 (N) An amount equal to all amounts included in
683	683	5 such total which are exempt from taxation by this
684	684	6 State either by reason of its statutes or Constitution
685	685	7 or by reason of the Constitution, treaties or statutes
686	686	8 of the United States; provided that, in the case of any
687	687	9 statute of this State that exempts income derived from
688	688	10 bonds or other obligations from the tax imposed under
689	689	11 this Act, the amount exempted shall be the interest
690	690	12 net of bond premium amortization;
691	691	13 (O) An amount equal to any contribution made to a
692	692	14 job training project established pursuant to the Tax
693	693	15 Increment Allocation Redevelopment Act;
694	694	16 (P) An amount equal to the amount of the deduction
695	695	17 used to compute the federal income tax credit for
696	696	18 restoration of substantial amounts held under claim of
697	697	19 right for the taxable year pursuant to Section 1341 of
698	698	20 the Internal Revenue Code or of any itemized deduction
699	699	21 taken from adjusted gross income in the computation of
700	700	22 taxable income for restoration of substantial amounts
701	701	23 held under claim of right for the taxable year;
702	702	24 (Q) An amount equal to any amounts included in
703	703	25 such total, received by the taxpayer as an
704	704	26 acceleration in the payment of life, endowment or
705	705
706	706
707	707
708	708
709	709
710	710	HB3124 - 19 - LRB104 10028 HLH 20099 b
711	711
712	712
713	713	HB3124- 20 -LRB104 10028 HLH 20099 b HB3124 - 20 - LRB104 10028 HLH 20099 b
714	714	HB3124 - 20 - LRB104 10028 HLH 20099 b
715	715	1 annuity benefits in advance of the time they would
716	716	2 otherwise be payable as an indemnity for a terminal
717	717	3 illness;
718	718	4 (R) An amount equal to the amount of any federal or
719	719	5 State bonus paid to veterans of the Persian Gulf War;
720	720	6 (S) An amount, to the extent included in adjusted
721	721	7 gross income, equal to the amount of a contribution
722	722	8 made in the taxable year on behalf of the taxpayer to a
723	723	9 medical care savings account established under the
724	724	10 Medical Care Savings Account Act or the Medical Care
725	725	11 Savings Account Act of 2000 to the extent the
726	726	12 contribution is accepted by the account administrator
727	727	13 as provided in that Act;
728	728	14 (T) An amount, to the extent included in adjusted
729	729	15 gross income, equal to the amount of interest earned
730	730	16 in the taxable year on a medical care savings account
731	731	17 established under the Medical Care Savings Account Act
732	732	18 or the Medical Care Savings Account Act of 2000 on
733	733	19 behalf of the taxpayer, other than interest added
734	734	20 pursuant to item (D-5) of this paragraph (2);
735	735	21 (U) For one taxable year beginning on or after
736	736	22 January 1, 1994, an amount equal to the total amount of
737	737	23 tax imposed and paid under subsections (a) and (b) of
738	738	24 Section 201 of this Act on grant amounts received by
739	739	25 the taxpayer under the Nursing Home Grant Assistance
740	740	26 Act during the taxpayer's taxable years 1992 and 1993;
741	741
742	742
743	743
744	744
745	745
746	746	HB3124 - 20 - LRB104 10028 HLH 20099 b
747	747
748	748
749	749	HB3124- 21 -LRB104 10028 HLH 20099 b HB3124 - 21 - LRB104 10028 HLH 20099 b
750	750	HB3124 - 21 - LRB104 10028 HLH 20099 b
751	751	1 (V) Beginning with tax years ending on or after
752	752	2 December 31, 1995 and ending with tax years ending on
753	753	3 or before December 31, 2004, an amount equal to the
754	754	4 amount paid by a taxpayer who is a self-employed
755	755	5 taxpayer, a partner of a partnership, or a shareholder
756	756	6 in a Subchapter S corporation for health insurance or
757	757	7 long-term care insurance for that taxpayer or that
758	758	8 taxpayer's spouse or dependents, to the extent that
759	759	9 the amount paid for that health insurance or long-term
760	760	10 care insurance may be deducted under Section 213 of
761	761	11 the Internal Revenue Code, has not been deducted on
762	762	12 the federal income tax return of the taxpayer, and
763	763	13 does not exceed the taxable income attributable to
764	764	14 that taxpayer's income, self-employment income, or
765	765	15 Subchapter S corporation income; except that no
766	766	16 deduction shall be allowed under this item (V) if the
767	767	17 taxpayer is eligible to participate in any health
768	768	18 insurance or long-term care insurance plan of an
769	769	19 employer of the taxpayer or the taxpayer's spouse. The
770	770	20 amount of the health insurance and long-term care
771	771	21 insurance subtracted under this item (V) shall be
772	772	22 determined by multiplying total health insurance and
773	773	23 long-term care insurance premiums paid by the taxpayer
774	774	24 times a number that represents the fractional
775	775	25 percentage of eligible medical expenses under Section
776	776	26 213 of the Internal Revenue Code of 1986 not actually
777	777
778	778
779	779
780	780
781	781
782	782	HB3124 - 21 - LRB104 10028 HLH 20099 b
783	783
784	784
785	785	HB3124- 22 -LRB104 10028 HLH 20099 b HB3124 - 22 - LRB104 10028 HLH 20099 b
786	786	HB3124 - 22 - LRB104 10028 HLH 20099 b
787	787	1 deducted on the taxpayer's federal income tax return;
788	788	2 (W) For taxable years beginning on or after
789	789	3 January 1, 1998, all amounts included in the
790	790	4 taxpayer's federal gross income in the taxable year
791	791	5 from amounts converted from a regular IRA to a Roth
792	792	6 IRA. This paragraph is exempt from the provisions of
793	793	7 Section 250;
794	794	8 (X) For taxable year 1999 and thereafter, an
795	795	9 amount equal to the amount of any (i) distributions,
796	796	10 to the extent includible in gross income for federal
797	797	11 income tax purposes, made to the taxpayer because of
798	798	12 his or her status as a victim of persecution for racial
799	799	13 or religious reasons by Nazi Germany or any other Axis
800	800	14 regime or as an heir of the victim and (ii) items of
801	801	15 income, to the extent includible in gross income for
802	802	16 federal income tax purposes, attributable to, derived
803	803	17 from or in any way related to assets stolen from,
804	804	18 hidden from, or otherwise lost to a victim of
805	805	19 persecution for racial or religious reasons by Nazi
806	806	20 Germany or any other Axis regime immediately prior to,
807	807	21 during, and immediately after World War II, including,
808	808	22 but not limited to, interest on the proceeds
809	809	23 receivable as insurance under policies issued to a
810	810	24 victim of persecution for racial or religious reasons
811	811	25 by Nazi Germany or any other Axis regime by European
812	812	26 insurance companies immediately prior to and during
813	813
814	814
815	815
816	816
817	817
818	818	HB3124 - 22 - LRB104 10028 HLH 20099 b
819	819
820	820
821	821	HB3124- 23 -LRB104 10028 HLH 20099 b HB3124 - 23 - LRB104 10028 HLH 20099 b
822	822	HB3124 - 23 - LRB104 10028 HLH 20099 b
823	823	1 World War II; provided, however, this subtraction from
824	824	2 federal adjusted gross income does not apply to assets
825	825	3 acquired with such assets or with the proceeds from
826	826	4 the sale of such assets; provided, further, this
827	827	5 paragraph shall only apply to a taxpayer who was the
828	828	6 first recipient of such assets after their recovery
829	829	7 and who is a victim of persecution for racial or
830	830	8 religious reasons by Nazi Germany or any other Axis
831	831	9 regime or as an heir of the victim. The amount of and
832	832	10 the eligibility for any public assistance, benefit, or
833	833	11 similar entitlement is not affected by the inclusion
834	834	12 of items (i) and (ii) of this paragraph in gross income
835	835	13 for federal income tax purposes. This paragraph is
836	836	14 exempt from the provisions of Section 250;
837	837	15 (Y) For taxable years beginning on or after
838	838	16 January 1, 2002 and ending on or before December 31,
839	839	17 2004, moneys contributed in the taxable year to a
840	840	18 College Savings Pool account under Section 16.5 of the
841	841	19 State Treasurer Act, except that amounts excluded from
842	842	20 gross income under Section 529(c)(3)(C)(i) of the
843	843	21 Internal Revenue Code shall not be considered moneys
844	844	22 contributed under this subparagraph (Y). For taxable
845	845	23 years beginning on or after January 1, 2005, a maximum
846	846	24 of $10,000 contributed in the taxable year to (i) a
847	847	25 College Savings Pool account under Section 16.5 of the
848	848	26 State Treasurer Act or (ii) the Illinois Prepaid
849	849
850	850
851	851
852	852
853	853
854	854	HB3124 - 23 - LRB104 10028 HLH 20099 b
855	855
856	856
857	857	HB3124- 24 -LRB104 10028 HLH 20099 b HB3124 - 24 - LRB104 10028 HLH 20099 b
858	858	HB3124 - 24 - LRB104 10028 HLH 20099 b
859	859	1 Tuition Trust Fund, except that amounts excluded from
860	860	2 gross income under Section 529(c)(3)(C)(i) of the
861	861	3 Internal Revenue Code shall not be considered moneys
862	862	4 contributed under this subparagraph (Y). For purposes
863	863	5 of this subparagraph, contributions made by an
864	864	6 employer on behalf of an employee, or matching
865	865	7 contributions made by an employee, shall be treated as
866	866	8 made by the employee. This subparagraph (Y) is exempt
867	867	9 from the provisions of Section 250;
868	868	10 (Z) For taxable years 2001 and thereafter, for the
869	869	11 taxable year in which the bonus depreciation deduction
870	870	12 is taken on the taxpayer's federal income tax return
871	871	13 under subsection (k) of Section 168 of the Internal
872	872	14 Revenue Code and for each applicable taxable year
873	873	15 thereafter, an amount equal to "x", where:
874	874	16 (1) "y" equals the amount of the depreciation
875	875	17 deduction taken for the taxable year on the
876	876	18 taxpayer's federal income tax return on property
877	877	19 for which the bonus depreciation deduction was
878	878	20 taken in any year under subsection (k) of Section
879	879	21 168 of the Internal Revenue Code, but not
880	880	22 including the bonus depreciation deduction;
881	881	23 (2) for taxable years ending on or before
882	882	24 December 31, 2005, "x" equals "y" multiplied by 30
883	883	25 and then divided by 70 (or "y" multiplied by
884	884	26 0.429); and
885	885
886	886
887	887
888	888
889	889
890	890	HB3124 - 24 - LRB104 10028 HLH 20099 b
891	891
892	892
893	893	HB3124- 25 -LRB104 10028 HLH 20099 b HB3124 - 25 - LRB104 10028 HLH 20099 b
894	894	HB3124 - 25 - LRB104 10028 HLH 20099 b
895	895	1 (3) for taxable years ending after December
896	896	2 31, 2005:
897	897	3 (i) for property on which a bonus
898	898	4 depreciation deduction of 30% of the adjusted
899	899	5 basis was taken, "x" equals "y" multiplied by
900	900	6 30 and then divided by 70 (or "y" multiplied
901	901	7 by 0.429);
902	902	8 (ii) for property on which a bonus
903	903	9 depreciation deduction of 50% of the adjusted
904	904	10 basis was taken, "x" equals "y" multiplied by
905	905	11 1.0;
906	906	12 (iii) for property on which a bonus
907	907	13 depreciation deduction of 100% of the adjusted
908	908	14 basis was taken in a taxable year ending on or
909	909	15 after December 31, 2021, "x" equals the
910	910	16 depreciation deduction that would be allowed
911	911	17 on that property if the taxpayer had made the
912	912	18 election under Section 168(k)(7) of the
913	913	19 Internal Revenue Code to not claim bonus
914	914	20 depreciation on that property; and
915	915	21 (iv) for property on which a bonus
916	916	22 depreciation deduction of a percentage other
917	917	23 than 30%, 50% or 100% of the adjusted basis
918	918	24 was taken in a taxable year ending on or after
919	919	25 December 31, 2021, "x" equals "y" multiplied
920	920	26 by 100 times the percentage bonus depreciation
921	921
922	922
923	923
924	924
925	925
926	926	HB3124 - 25 - LRB104 10028 HLH 20099 b
927	927
928	928
929	929	HB3124- 26 -LRB104 10028 HLH 20099 b HB3124 - 26 - LRB104 10028 HLH 20099 b
930	930	HB3124 - 26 - LRB104 10028 HLH 20099 b
931	931	1 on the property (that is, 100(bonus%)) and
932	932	2 then divided by 100 times 1 minus the
933	933	3 percentage bonus depreciation on the property
934	934	4 (that is, 100(1-bonus%)).
935	935	5 The aggregate amount deducted under this
936	936	6 subparagraph in all taxable years for any one piece of
937	937	7 property may not exceed the amount of the bonus
938	938	8 depreciation deduction taken on that property on the
939	939	9 taxpayer's federal income tax return under subsection
940	940	10 (k) of Section 168 of the Internal Revenue Code. This
941	941	11 subparagraph (Z) is exempt from the provisions of
942	942	12 Section 250;
943	943	13 (AA) If the taxpayer sells, transfers, abandons,
944	944	14 or otherwise disposes of property for which the
945	945	15 taxpayer was required in any taxable year to make an
946	946	16 addition modification under subparagraph (D-15), then
947	947	17 an amount equal to that addition modification.
948	948	18 If the taxpayer continues to own property through
949	949	19 the last day of the last tax year for which a taxpayer
950	950	20 may claim a depreciation deduction for federal income
951	951	21 tax purposes a subtraction is allowed with respect to
952	952	22 that property under subparagraph (Z) and for which the
953	953	23 taxpayer was required in any taxable year to make an
954	954	24 addition modification under subparagraph (D-15), then
955	955	25 an amount equal to that addition modification.
956	956	26 The taxpayer is allowed to take the deduction
957	957
958	958
959	959
960	960
961	961
962	962	HB3124 - 26 - LRB104 10028 HLH 20099 b
963	963
964	964
965	965	HB3124- 27 -LRB104 10028 HLH 20099 b HB3124 - 27 - LRB104 10028 HLH 20099 b
966	966	HB3124 - 27 - LRB104 10028 HLH 20099 b
967	967	1 under this subparagraph only once with respect to any
968	968	2 one piece of property.
969	969	3 This subparagraph (AA) is exempt from the
970	970	4 provisions of Section 250;
971	971	5 (BB) Any amount included in adjusted gross income,
972	972	6 other than salary, received by a driver in a
973	973	7 ridesharing arrangement using a motor vehicle;
974	974	8 (CC) The amount of (i) any interest income (net of
975	975	9 the deductions allocable thereto) taken into account
976	976	10 for the taxable year with respect to a transaction
977	977	11 with a taxpayer that is required to make an addition
978	978	12 modification with respect to such transaction under
979	979	13 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
980	980	14 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
981	981	15 the amount of that addition modification, and (ii) any
982	982	16 income from intangible property (net of the deductions
983	983	17 allocable thereto) taken into account for the taxable
984	984	18 year with respect to a transaction with a taxpayer
985	985	19 that is required to make an addition modification with
986	986	20 respect to such transaction under Section
987	987	21 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
988	988	22 203(d)(2)(D-8), but not to exceed the amount of that
989	989	23 addition modification. This subparagraph (CC) is
990	990	24 exempt from the provisions of Section 250;
991	991	25 (DD) An amount equal to the interest income taken
992	992	26 into account for the taxable year (net of the
993	993
994	994
995	995
996	996
997	997
998	998	HB3124 - 27 - LRB104 10028 HLH 20099 b
999	999
1000	1000
1001	1001	HB3124- 28 -LRB104 10028 HLH 20099 b HB3124 - 28 - LRB104 10028 HLH 20099 b
1002	1002	HB3124 - 28 - LRB104 10028 HLH 20099 b
1003	1003	1 deductions allocable thereto) with respect to
1004	1004	2 transactions with (i) a foreign person who would be a
1005	1005	3 member of the taxpayer's unitary business group but
1006	1006	4 for the fact that the foreign person's business
1007	1007	5 activity outside the United States is 80% or more of
1008	1008	6 that person's total business activity and (ii) for
1009	1009	7 taxable years ending on or after December 31, 2008, to
1010	1010	8 a person who would be a member of the same unitary
1011	1011	9 business group but for the fact that the person is
1012	1012	10 prohibited under Section 1501(a)(27) from being
1013	1013	11 included in the unitary business group because he or
1014	1014	12 she is ordinarily required to apportion business
1015	1015	13 income under different subsections of Section 304, but
1016	1016	14 not to exceed the addition modification required to be
1017	1017	15 made for the same taxable year under Section
1018	1018	16 203(a)(2)(D-17) for interest paid, accrued, or
1019	1019	17 incurred, directly or indirectly, to the same person.
1020	1020	18 This subparagraph (DD) is exempt from the provisions
1021	1021	19 of Section 250;
1022	1022	20 (EE) An amount equal to the income from intangible
1023	1023	21 property taken into account for the taxable year (net
1024	1024	22 of the deductions allocable thereto) with respect to
1025	1025	23 transactions with (i) a foreign person who would be a
1026	1026	24 member of the taxpayer's unitary business group but
1027	1027	25 for the fact that the foreign person's business
1028	1028	26 activity outside the United States is 80% or more of
1029	1029
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034	HB3124 - 28 - LRB104 10028 HLH 20099 b
1035	1035
1036	1036
1037	1037	HB3124- 29 -LRB104 10028 HLH 20099 b HB3124 - 29 - LRB104 10028 HLH 20099 b
1038	1038	HB3124 - 29 - LRB104 10028 HLH 20099 b
1039	1039	1 that person's total business activity and (ii) for
1040	1040	2 taxable years ending on or after December 31, 2008, to
1041	1041	3 a person who would be a member of the same unitary
1042	1042	4 business group but for the fact that the person is
1043	1043	5 prohibited under Section 1501(a)(27) from being
1044	1044	6 included in the unitary business group because he or
1045	1045	7 she is ordinarily required to apportion business
1046	1046	8 income under different subsections of Section 304, but
1047	1047	9 not to exceed the addition modification required to be
1048	1048	10 made for the same taxable year under Section
1049	1049	11 203(a)(2)(D-18) for intangible expenses and costs
1050	1050	12 paid, accrued, or incurred, directly or indirectly, to
1051	1051	13 the same foreign person. This subparagraph (EE) is
1052	1052	14 exempt from the provisions of Section 250;
1053	1053	15 (FF) An amount equal to any amount awarded to the
1054	1054	16 taxpayer during the taxable year by the Court of
1055	1055	17 Claims under subsection (c) of Section 8 of the Court
1056	1056	18 of Claims Act for time unjustly served in a State
1057	1057	19 prison. This subparagraph (FF) is exempt from the
1058	1058	20 provisions of Section 250;
1059	1059	21 (GG) For taxable years ending on or after December
1060	1060	22 31, 2011, in the case of a taxpayer who was required to
1061	1061	23 add back any insurance premiums under Section
1062	1062	24 203(a)(2)(D-19), such taxpayer may elect to subtract
1063	1063	25 that part of a reimbursement received from the
1064	1064	26 insurance company equal to the amount of the expense
1065	1065
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070	HB3124 - 29 - LRB104 10028 HLH 20099 b
1071	1071
1072	1072
1073	1073	HB3124- 30 -LRB104 10028 HLH 20099 b HB3124 - 30 - LRB104 10028 HLH 20099 b
1074	1074	HB3124 - 30 - LRB104 10028 HLH 20099 b
1075	1075	1 or loss (including expenses incurred by the insurance
1076	1076	2 company) that would have been taken into account as a
1077	1077	3 deduction for federal income tax purposes if the
1078	1078	4 expense or loss had been uninsured. If a taxpayer
1079	1079	5 makes the election provided for by this subparagraph
1080	1080	6 (GG), the insurer to which the premiums were paid must
1081	1081	7 add back to income the amount subtracted by the
1082	1082	8 taxpayer pursuant to this subparagraph (GG). This
1083	1083	9 subparagraph (GG) is exempt from the provisions of
1084	1084	10 Section 250;
1085	1085	11 (HH) For taxable years beginning on or after
1086	1086	12 January 1, 2018 and prior to January 1, 2028, a maximum
1087	1087	13 of $10,000 contributed in the taxable year to a
1088	1088	14 qualified ABLE account under Section 16.6 of the State
1089	1089	15 Treasurer Act, except that amounts excluded from gross
1090	1090	16 income under Section 529(c)(3)(C)(i) or Section
1091	1091	17 529A(c)(1)(C) of the Internal Revenue Code shall not
1092	1092	18 be considered moneys contributed under this
1093	1093	19 subparagraph (HH). For purposes of this subparagraph
1094	1094	20 (HH), contributions made by an employer on behalf of
1095	1095	21 an employee, or matching contributions made by an
1096	1096	22 employee, shall be treated as made by the employee;
1097	1097	23 (II) For taxable years that begin on or after
1098	1098	24 January 1, 2021 and begin before January 1, 2026, the
1099	1099	25 amount that is included in the taxpayer's federal
1100	1100	26 adjusted gross income pursuant to Section 61 of the
1101	1101
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106	HB3124 - 30 - LRB104 10028 HLH 20099 b
1107	1107
1108	1108
1109	1109	HB3124- 31 -LRB104 10028 HLH 20099 b HB3124 - 31 - LRB104 10028 HLH 20099 b
1110	1110	HB3124 - 31 - LRB104 10028 HLH 20099 b
1111	1111	1 Internal Revenue Code as discharge of indebtedness
1112	1112	2 attributable to student loan forgiveness and that is
1113	1113	3 not excluded from the taxpayer's federal adjusted
1114	1114	4 gross income pursuant to paragraph (5) of subsection
1115	1115	5 (f) of Section 108 of the Internal Revenue Code;
1116	1116	6 (JJ) For taxable years beginning on or after
1117	1117	7 January 1, 2023, for any cannabis establishment
1118	1118	8 operating in this State and licensed under the
1119	1119	9 Cannabis Regulation and Tax Act or any cannabis
1120	1120	10 cultivation center or medical cannabis dispensing
1121	1121	11 organization operating in this State and licensed
1122	1122	12 under the Compassionate Use of Medical Cannabis
1123	1123	13 Program Act, an amount equal to the deductions that
1124	1124	14 were disallowed under Section 280E of the Internal
1125	1125	15 Revenue Code for the taxable year and that would not be
1126	1126	16 added back under this subsection. The provisions of
1127	1127	17 this subparagraph (JJ) are exempt from the provisions
1128	1128	18 of Section 250; and
1129	1129	19 (KK) To the extent includible in gross income for
1130	1130	20 federal income tax purposes, any amount awarded or
1131	1131	21 paid to the taxpayer as a result of a judgment or
1132	1132	22 settlement for fertility fraud as provided in Section
1133	1133	23 15 of the Illinois Fertility Fraud Act, donor
1134	1134	24 fertility fraud as provided in Section 20 of the
1135	1135	25 Illinois Fertility Fraud Act, or similar action in
1136	1136	26 another state; and
1137	1137
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142	HB3124 - 31 - LRB104 10028 HLH 20099 b
1143	1143
1144	1144
1145	1145	HB3124- 32 -LRB104 10028 HLH 20099 b HB3124 - 32 - LRB104 10028 HLH 20099 b
1146	1146	HB3124 - 32 - LRB104 10028 HLH 20099 b
1147	1147	1 (LL) For taxable years beginning on or after
1148	1148	2 January 1, 2026, if the taxpayer is a qualified
1149	1149	3 worker, as defined in the Workforce Development
1150	1150	4 through Charitable Loan Repayment Act, an amount equal
1151	1151	5 to the amount included in the taxpayer's federal
1152	1152	6 adjusted gross income that is attributable to student
1153	1153	7 loan repayment assistance received by the taxpayer
1154	1154	8 during the taxable year from a qualified community
1155	1155	9 foundation under the provisions of the Workforce
1156	1156	10 Development through Through Charitable Loan Repayment
1157	1157	11 Act.
1158	1158	12 This subparagraph (LL) is exempt from the
1159	1159	13 provisions of Section 250; and .
1160	1160	14 (MM) (LL) For taxable years beginning on or after
1161	1161	15 January 1, 2025, if the taxpayer is an eligible
1162	1162	16 resident as defined in the Medical Debt Relief Act, an
1163	1163	17 amount equal to the amount included in the taxpayer's
1164	1164	18 federal adjusted gross income that is attributable to
1165	1165	19 medical debt relief received by the taxpayer during
1166	1166	20 the taxable year from a nonprofit medical debt relief
1167	1167	21 coordinator under the provisions of the Medical Debt
1168	1168	22 Relief Act. This subparagraph (MM) (LL) is exempt from
1169	1169	23 the provisions of Section 250.
1170	1170	24 (b) Corporations.
1171	1171	25 (1) In general. In the case of a corporation, base
1172	1172
1173	1173
1174	1174
1175	1175
1176	1176
1177	1177	HB3124 - 32 - LRB104 10028 HLH 20099 b
1178	1178
1179	1179
1180	1180	HB3124- 33 -LRB104 10028 HLH 20099 b HB3124 - 33 - LRB104 10028 HLH 20099 b
1181	1181	HB3124 - 33 - LRB104 10028 HLH 20099 b
1182	1182	1 income means an amount equal to the taxpayer's taxable
1183	1183	2 income for the taxable year as modified by paragraph (2).
1184	1184	3 (2) Modifications. The taxable income referred to in
1185	1185	4 paragraph (1) shall be modified by adding thereto the sum
1186	1186	5 of the following amounts:
1187	1187	6 (A) An amount equal to all amounts paid or accrued
1188	1188	7 to the taxpayer as interest and all distributions
1189	1189	8 received from regulated investment companies during
1190	1190	9 the taxable year to the extent excluded from gross
1191	1191	10 income in the computation of taxable income;
1192	1192	11 (B) An amount equal to the amount of tax imposed by
1193	1193	12 this Act to the extent deducted from gross income in
1194	1194	13 the computation of taxable income for the taxable
1195	1195	14 year;
1196	1196	15 (C) In the case of a regulated investment company,
1197	1197	16 an amount equal to the excess of (i) the net long-term
1198	1198	17 capital gain for the taxable year, over (ii) the
1199	1199	18 amount of the capital gain dividends designated as
1200	1200	19 such in accordance with Section 852(b)(3)(C) of the
1201	1201	20 Internal Revenue Code and any amount designated under
1202	1202	21 Section 852(b)(3)(D) of the Internal Revenue Code,
1203	1203	22 attributable to the taxable year (this amendatory Act
1204	1204	23 of 1995 (Public Act 89-89) is declarative of existing
1205	1205	24 law and is not a new enactment);
1206	1206	25 (D) The amount of any net operating loss deduction
1207	1207	26 taken in arriving at taxable income, other than a net
1208	1208
1209	1209
1210	1210
1211	1211
1212	1212
1213	1213	HB3124 - 33 - LRB104 10028 HLH 20099 b
1214	1214
1215	1215
1216	1216	HB3124- 34 -LRB104 10028 HLH 20099 b HB3124 - 34 - LRB104 10028 HLH 20099 b
1217	1217	HB3124 - 34 - LRB104 10028 HLH 20099 b
1218	1218	1 operating loss carried forward from a taxable year
1219	1219	2 ending prior to December 31, 1986;
1220	1220	3 (E) For taxable years in which a net operating
1221	1221	4 loss carryback or carryforward from a taxable year
1222	1222	5 ending prior to December 31, 1986 is an element of
1223	1223	6 taxable income under paragraph (1) of subsection (e)
1224	1224	7 or subparagraph (E) of paragraph (2) of subsection
1225	1225	8 (e), the amount by which addition modifications other
1226	1226	9 than those provided by this subparagraph (E) exceeded
1227	1227	10 subtraction modifications in such earlier taxable
1228	1228	11 year, with the following limitations applied in the
1229	1229	12 order that they are listed:
1230	1230	13 (i) the addition modification relating to the
1231	1231	14 net operating loss carried back or forward to the
1232	1232	15 taxable year from any taxable year ending prior to
1233	1233	16 December 31, 1986 shall be reduced by the amount
1234	1234	17 of addition modification under this subparagraph
1235	1235	18 (E) which related to that net operating loss and
1236	1236	19 which was taken into account in calculating the
1237	1237	20 base income of an earlier taxable year, and
1238	1238	21 (ii) the addition modification relating to the
1239	1239	22 net operating loss carried back or forward to the
1240	1240	23 taxable year from any taxable year ending prior to
1241	1241	24 December 31, 1986 shall not exceed the amount of
1242	1242	25 such carryback or carryforward;
1243	1243	26 For taxable years in which there is a net
1244	1244
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249	HB3124 - 34 - LRB104 10028 HLH 20099 b
1250	1250
1251	1251
1252	1252	HB3124- 35 -LRB104 10028 HLH 20099 b HB3124 - 35 - LRB104 10028 HLH 20099 b
1253	1253	HB3124 - 35 - LRB104 10028 HLH 20099 b
1254	1254	1 operating loss carryback or carryforward from more
1255	1255	2 than one other taxable year ending prior to December
1256	1256	3 31, 1986, the addition modification provided in this
1257	1257	4 subparagraph (E) shall be the sum of the amounts
1258	1258	5 computed independently under the preceding provisions
1259	1259	6 of this subparagraph (E) for each such taxable year;
1260	1260	7 (E-5) For taxable years ending after December 31,
1261	1261	8 1997, an amount equal to any eligible remediation
1262	1262	9 costs that the corporation deducted in computing
1263	1263	10 adjusted gross income and for which the corporation
1264	1264	11 claims a credit under subsection (l) of Section 201;
1265	1265	12 (E-10) For taxable years 2001 and thereafter, an
1266	1266	13 amount equal to the bonus depreciation deduction taken
1267	1267	14 on the taxpayer's federal income tax return for the
1268	1268	15 taxable year under subsection (k) of Section 168 of
1269	1269	16 the Internal Revenue Code;
1270	1270	17 (E-11) If the taxpayer sells, transfers, abandons,
1271	1271	18 or otherwise disposes of property for which the
1272	1272	19 taxpayer was required in any taxable year to make an
1273	1273	20 addition modification under subparagraph (E-10), then
1274	1274	21 an amount equal to the aggregate amount of the
1275	1275	22 deductions taken in all taxable years under
1276	1276	23 subparagraph (T) with respect to that property.
1277	1277	24 If the taxpayer continues to own property through
1278	1278	25 the last day of the last tax year for a taxpayer may
1279	1279	26 claim a depreciation deduction for federal income tax
1280	1280
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285	HB3124 - 35 - LRB104 10028 HLH 20099 b
1286	1286
1287	1287
1288	1288	HB3124- 36 -LRB104 10028 HLH 20099 b HB3124 - 36 - LRB104 10028 HLH 20099 b
1289	1289	HB3124 - 36 - LRB104 10028 HLH 20099 b
1290	1290	1 purposes which a subtraction is allowed with respect
1291	1291	2 to that property under subparagraph (T) and for which
1292	1292	3 the taxpayer was allowed in any taxable year to make a
1293	1293	4 subtraction modification under subparagraph (T), then
1294	1294	5 an amount equal to that subtraction modification.
1295	1295	6 The taxpayer is required to make the addition
1296	1296	7 modification under this subparagraph only once with
1297	1297	8 respect to any one piece of property;
1298	1298	9 (E-12) An amount equal to the amount otherwise
1299	1299	10 allowed as a deduction in computing base income for
1300	1300	11 interest paid, accrued, or incurred, directly or
1301	1301	12 indirectly, (i) for taxable years ending on or after
1302	1302	13 December 31, 2004, to a foreign person who would be a
1303	1303	14 member of the same unitary business group but for the
1304	1304	15 fact the foreign person's business activity outside
1305	1305	16 the United States is 80% or more of the foreign
1306	1306	17 person's total business activity and (ii) for taxable
1307	1307	18 years ending on or after December 31, 2008, to a person
1308	1308	19 who would be a member of the same unitary business
1309	1309	20 group but for the fact that the person is prohibited
1310	1310	21 under Section 1501(a)(27) from being included in the
1311	1311	22 unitary business group because he or she is ordinarily
1312	1312	23 required to apportion business income under different
1313	1313	24 subsections of Section 304. The addition modification
1314	1314	25 required by this subparagraph shall be reduced to the
1315	1315	26 extent that dividends were included in base income of
1316	1316
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321	HB3124 - 36 - LRB104 10028 HLH 20099 b
1322	1322
1323	1323
1324	1324	HB3124- 37 -LRB104 10028 HLH 20099 b HB3124 - 37 - LRB104 10028 HLH 20099 b
1325	1325	HB3124 - 37 - LRB104 10028 HLH 20099 b
1326	1326	1 the unitary group for the same taxable year and
1327	1327	2 received by the taxpayer or by a member of the
1328	1328	3 taxpayer's unitary business group (including amounts
1329	1329	4 included in gross income pursuant to Sections 951
1330	1330	5 through 964 of the Internal Revenue Code and amounts
1331	1331	6 included in gross income under Section 78 of the
1332	1332	7 Internal Revenue Code) with respect to the stock of
1333	1333	8 the same person to whom the interest was paid,
1334	1334	9 accrued, or incurred.
1335	1335	10 This paragraph shall not apply to the following:
1336	1336	11 (i) an item of interest paid, accrued, or
1337	1337	12 incurred, directly or indirectly, to a person who
1338	1338	13 is subject in a foreign country or state, other
1339	1339	14 than a state which requires mandatory unitary
1340	1340	15 reporting, to a tax on or measured by net income
1341	1341	16 with respect to such interest; or
1342	1342	17 (ii) an item of interest paid, accrued, or
1343	1343	18 incurred, directly or indirectly, to a person if
1344	1344	19 the taxpayer can establish, based on a
1345	1345	20 preponderance of the evidence, both of the
1346	1346	21 following:
1347	1347	22 (a) the person, during the same taxable
1348	1348	23 year, paid, accrued, or incurred, the interest
1349	1349	24 to a person that is not a related member, and
1350	1350	25 (b) the transaction giving rise to the
1351	1351	26 interest expense between the taxpayer and the
1352	1352
1353	1353
1354	1354
1355	1355
1356	1356
1357	1357	HB3124 - 37 - LRB104 10028 HLH 20099 b
1358	1358
1359	1359
1360	1360	HB3124- 38 -LRB104 10028 HLH 20099 b HB3124 - 38 - LRB104 10028 HLH 20099 b
1361	1361	HB3124 - 38 - LRB104 10028 HLH 20099 b
1362	1362	1 person did not have as a principal purpose the
1363	1363	2 avoidance of Illinois income tax, and is paid
1364	1364	3 pursuant to a contract or agreement that
1365	1365	4 reflects an arm's-length interest rate and
1366	1366	5 terms; or
1367	1367	6 (iii) the taxpayer can establish, based on
1368	1368	7 clear and convincing evidence, that the interest
1369	1369	8 paid, accrued, or incurred relates to a contract
1370	1370	9 or agreement entered into at arm's-length rates
1371	1371	10 and terms and the principal purpose for the
1372	1372	11 payment is not federal or Illinois tax avoidance;
1373	1373	12 or
1374	1374	13 (iv) an item of interest paid, accrued, or
1375	1375	14 incurred, directly or indirectly, to a person if
1376	1376	15 the taxpayer establishes by clear and convincing
1377	1377	16 evidence that the adjustments are unreasonable; or
1378	1378	17 if the taxpayer and the Director agree in writing
1379	1379	18 to the application or use of an alternative method
1380	1380	19 of apportionment under Section 304(f).
1381	1381	20 Nothing in this subsection shall preclude the
1382	1382	21 Director from making any other adjustment
1383	1383	22 otherwise allowed under Section 404 of this Act
1384	1384	23 for any tax year beginning after the effective
1385	1385	24 date of this amendment provided such adjustment is
1386	1386	25 made pursuant to regulation adopted by the
1387	1387	26 Department and such regulations provide methods
1388	1388
1389	1389
1390	1390
1391	1391
1392	1392
1393	1393	HB3124 - 38 - LRB104 10028 HLH 20099 b
1394	1394
1395	1395
1396	1396	HB3124- 39 -LRB104 10028 HLH 20099 b HB3124 - 39 - LRB104 10028 HLH 20099 b
1397	1397	HB3124 - 39 - LRB104 10028 HLH 20099 b
1398	1398	1 and standards by which the Department will utilize
1399	1399	2 its authority under Section 404 of this Act;
1400	1400	3 (E-13) An amount equal to the amount of intangible
1401	1401	4 expenses and costs otherwise allowed as a deduction in
1402	1402	5 computing base income, and that were paid, accrued, or
1403	1403	6 incurred, directly or indirectly, (i) for taxable
1404	1404	7 years ending on or after December 31, 2004, to a
1405	1405	8 foreign person who would be a member of the same
1406	1406	9 unitary business group but for the fact that the
1407	1407	10 foreign person's business activity outside the United
1408	1408	11 States is 80% or more of that person's total business
1409	1409	12 activity and (ii) for taxable years ending on or after
1410	1410	13 December 31, 2008, to a person who would be a member of
1411	1411	14 the same unitary business group but for the fact that
1412	1412	15 the person is prohibited under Section 1501(a)(27)
1413	1413	16 from being included in the unitary business group
1414	1414	17 because he or she is ordinarily required to apportion
1415	1415	18 business income under different subsections of Section
1416	1416	19 304. The addition modification required by this
1417	1417	20 subparagraph shall be reduced to the extent that
1418	1418	21 dividends were included in base income of the unitary
1419	1419	22 group for the same taxable year and received by the
1420	1420	23 taxpayer or by a member of the taxpayer's unitary
1421	1421	24 business group (including amounts included in gross
1422	1422	25 income pursuant to Sections 951 through 964 of the
1423	1423	26 Internal Revenue Code and amounts included in gross
1424	1424
1425	1425
1426	1426
1427	1427
1428	1428
1429	1429	HB3124 - 39 - LRB104 10028 HLH 20099 b
1430	1430
1431	1431
1432	1432	HB3124- 40 -LRB104 10028 HLH 20099 b HB3124 - 40 - LRB104 10028 HLH 20099 b
1433	1433	HB3124 - 40 - LRB104 10028 HLH 20099 b
1434	1434	1 income under Section 78 of the Internal Revenue Code)
1435	1435	2 with respect to the stock of the same person to whom
1436	1436	3 the intangible expenses and costs were directly or
1437	1437	4 indirectly paid, incurred, or accrued. The preceding
1438	1438	5 sentence shall not apply to the extent that the same
1439	1439	6 dividends caused a reduction to the addition
1440	1440	7 modification required under Section 203(b)(2)(E-12) of
1441	1441	8 this Act. As used in this subparagraph, the term
1442	1442	9 "intangible expenses and costs" includes (1) expenses,
1443	1443	10 losses, and costs for, or related to, the direct or
1444	1444	11 indirect acquisition, use, maintenance or management,
1445	1445	12 ownership, sale, exchange, or any other disposition of
1446	1446	13 intangible property; (2) losses incurred, directly or
1447	1447	14 indirectly, from factoring transactions or discounting
1448	1448	15 transactions; (3) royalty, patent, technical, and
1449	1449	16 copyright fees; (4) licensing fees; and (5) other
1450	1450	17 similar expenses and costs. For purposes of this
1451	1451	18 subparagraph, "intangible property" includes patents,
1452	1452	19 patent applications, trade names, trademarks, service
1453	1453	20 marks, copyrights, mask works, trade secrets, and
1454	1454	21 similar types of intangible assets.
1455	1455	22 This paragraph shall not apply to the following:
1456	1456	23 (i) any item of intangible expenses or costs
1457	1457	24 paid, accrued, or incurred, directly or
1458	1458	25 indirectly, from a transaction with a person who
1459	1459	26 is subject in a foreign country or state, other
1460	1460
1461	1461
1462	1462
1463	1463
1464	1464
1465	1465	HB3124 - 40 - LRB104 10028 HLH 20099 b
1466	1466
1467	1467
1468	1468	HB3124- 41 -LRB104 10028 HLH 20099 b HB3124 - 41 - LRB104 10028 HLH 20099 b
1469	1469	HB3124 - 41 - LRB104 10028 HLH 20099 b
1470	1470	1 than a state which requires mandatory unitary
1471	1471	2 reporting, to a tax on or measured by net income
1472	1472	3 with respect to such item; or
1473	1473	4 (ii) any item of intangible expense or cost
1474	1474	5 paid, accrued, or incurred, directly or
1475	1475	6 indirectly, if the taxpayer can establish, based
1476	1476	7 on a preponderance of the evidence, both of the
1477	1477	8 following:
1478	1478	9 (a) the person during the same taxable
1479	1479	10 year paid, accrued, or incurred, the
1480	1480	11 intangible expense or cost to a person that is
1481	1481	12 not a related member, and
1482	1482	13 (b) the transaction giving rise to the
1483	1483	14 intangible expense or cost between the
1484	1484	15 taxpayer and the person did not have as a
1485	1485	16 principal purpose the avoidance of Illinois
1486	1486	17 income tax, and is paid pursuant to a contract
1487	1487	18 or agreement that reflects arm's-length terms;
1488	1488	19 or
1489	1489	20 (iii) any item of intangible expense or cost
1490	1490	21 paid, accrued, or incurred, directly or
1491	1491	22 indirectly, from a transaction with a person if
1492	1492	23 the taxpayer establishes by clear and convincing
1493	1493	24 evidence, that the adjustments are unreasonable;
1494	1494	25 or if the taxpayer and the Director agree in
1495	1495	26 writing to the application or use of an
1496	1496
1497	1497
1498	1498
1499	1499
1500	1500
1501	1501	HB3124 - 41 - LRB104 10028 HLH 20099 b
1502	1502
1503	1503
1504	1504	HB3124- 42 -LRB104 10028 HLH 20099 b HB3124 - 42 - LRB104 10028 HLH 20099 b
1505	1505	HB3124 - 42 - LRB104 10028 HLH 20099 b
1506	1506	1 alternative method of apportionment under Section
1507	1507	2 304(f);
1508	1508	3 Nothing in this subsection shall preclude the
1509	1509	4 Director from making any other adjustment
1510	1510	5 otherwise allowed under Section 404 of this Act
1511	1511	6 for any tax year beginning after the effective
1512	1512	7 date of this amendment provided such adjustment is
1513	1513	8 made pursuant to regulation adopted by the
1514	1514	9 Department and such regulations provide methods
1515	1515	10 and standards by which the Department will utilize
1516	1516	11 its authority under Section 404 of this Act;
1517	1517	12 (E-14) For taxable years ending on or after
1518	1518	13 December 31, 2008, an amount equal to the amount of
1519	1519	14 insurance premium expenses and costs otherwise allowed
1520	1520	15 as a deduction in computing base income, and that were
1521	1521	16 paid, accrued, or incurred, directly or indirectly, to
1522	1522	17 a person who would be a member of the same unitary
1523	1523	18 business group but for the fact that the person is
1524	1524	19 prohibited under Section 1501(a)(27) from being
1525	1525	20 included in the unitary business group because he or
1526	1526	21 she is ordinarily required to apportion business
1527	1527	22 income under different subsections of Section 304. The
1528	1528	23 addition modification required by this subparagraph
1529	1529	24 shall be reduced to the extent that dividends were
1530	1530	25 included in base income of the unitary group for the
1531	1531	26 same taxable year and received by the taxpayer or by a
1532	1532
1533	1533
1534	1534
1535	1535
1536	1536
1537	1537	HB3124 - 42 - LRB104 10028 HLH 20099 b
1538	1538
1539	1539
1540	1540	HB3124- 43 -LRB104 10028 HLH 20099 b HB3124 - 43 - LRB104 10028 HLH 20099 b
1541	1541	HB3124 - 43 - LRB104 10028 HLH 20099 b
1542	1542	1 member of the taxpayer's unitary business group
1543	1543	2 (including amounts included in gross income under
1544	1544	3 Sections 951 through 964 of the Internal Revenue Code
1545	1545	4 and amounts included in gross income under Section 78
1546	1546	5 of the Internal Revenue Code) with respect to the
1547	1547	6 stock of the same person to whom the premiums and costs
1548	1548	7 were directly or indirectly paid, incurred, or
1549	1549	8 accrued. The preceding sentence does not apply to the
1550	1550	9 extent that the same dividends caused a reduction to
1551	1551	10 the addition modification required under Section
1552	1552	11 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1553	1553	12 Act;
1554	1554	13 (E-15) For taxable years beginning after December
1555	1555	14 31, 2008, any deduction for dividends paid by a
1556	1556	15 captive real estate investment trust that is allowed
1557	1557	16 to a real estate investment trust under Section
1558	1558	17 857(b)(2)(B) of the Internal Revenue Code for
1559	1559	18 dividends paid;
1560	1560	19 (E-16) An amount equal to the credit allowable to
1561	1561	20 the taxpayer under Section 218(a) of this Act,
1562	1562	21 determined without regard to Section 218(c) of this
1563	1563	22 Act;
1564	1564	23 (E-17) For taxable years ending on or after
1565	1565	24 December 31, 2017, an amount equal to the deduction
1566	1566	25 allowed under Section 199 of the Internal Revenue Code
1567	1567	26 for the taxable year;
1568	1568
1569	1569
1570	1570
1571	1571
1572	1572
1573	1573	HB3124 - 43 - LRB104 10028 HLH 20099 b
1574	1574
1575	1575
1576	1576	HB3124- 44 -LRB104 10028 HLH 20099 b HB3124 - 44 - LRB104 10028 HLH 20099 b
1577	1577	HB3124 - 44 - LRB104 10028 HLH 20099 b
1578	1578	1 (E-18) for taxable years beginning after December
1579	1579	2 31, 2018, an amount equal to the deduction allowed
1580	1580	3 under Section 250(a)(1)(A) of the Internal Revenue
1581	1581	4 Code for the taxable year;
1582	1582	5 (E-19) for taxable years ending on or after June
1583	1583	6 30, 2021, an amount equal to the deduction allowed
1584	1584	7 under Section 250(a)(1)(B)(i) of the Internal Revenue
1585	1585	8 Code for the taxable year;
1586	1586	9 (E-20) for taxable years ending on or after June
1587	1587	10 30, 2021, an amount equal to the deduction allowed
1588	1588	11 under Sections 243(e) and 245A(a) of the Internal
1589	1589	12 Revenue Code for the taxable year;
1590	1590	13 (E-21) the amount that is claimed as a federal
1591	1591	14 deduction when computing the taxpayer's federal
1592	1592	15 taxable income for the taxable year and that is
1593	1593	16 attributable to an endowment gift for which the
1594	1594	17 taxpayer receives a credit under the Illinois Gives
1595	1595	18 Tax Credit Act;
1596	1596	19 and by deducting from the total so obtained the sum of the
1597	1597	20 following amounts:
1598	1598	21 (F) An amount equal to the amount of any tax
1599	1599	22 imposed by this Act which was refunded to the taxpayer
1600	1600	23 and included in such total for the taxable year;
1601	1601	24 (G) An amount equal to any amount included in such
1602	1602	25 total under Section 78 of the Internal Revenue Code;
1603	1603	26 (H) In the case of a regulated investment company,
1604	1604
1605	1605
1606	1606
1607	1607
1608	1608
1609	1609	HB3124 - 44 - LRB104 10028 HLH 20099 b
1610	1610
1611	1611
1612	1612	HB3124- 45 -LRB104 10028 HLH 20099 b HB3124 - 45 - LRB104 10028 HLH 20099 b
1613	1613	HB3124 - 45 - LRB104 10028 HLH 20099 b
1614	1614	1 an amount equal to the amount of exempt interest
1615	1615	2 dividends as defined in subsection (b)(5) of Section
1616	1616	3 852 of the Internal Revenue Code, paid to shareholders
1617	1617	4 for the taxable year;
1618	1618	5 (I) With the exception of any amounts subtracted
1619	1619	6 under subparagraph (J), an amount equal to the sum of
1620	1620	7 all amounts disallowed as deductions by (i) Sections
1621	1621	8 171(a)(2) and 265(a)(2) and amounts disallowed as
1622	1622	9 interest expense by Section 291(a)(3) of the Internal
1623	1623	10 Revenue Code, and all amounts of expenses allocable to
1624	1624	11 interest and disallowed as deductions by Section
1625	1625	12 265(a)(1) of the Internal Revenue Code; and (ii) for
1626	1626	13 taxable years ending on or after August 13, 1999,
1627	1627	14 Sections 171(a)(2), 265, 280C, 291(a)(3), and
1628	1628	15 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
1629	1629	16 for tax years ending on or after December 31, 2011,
1630	1630	17 amounts disallowed as deductions by Section 45G(e)(3)
1631	1631	18 of the Internal Revenue Code and, for taxable years
1632	1632	19 ending on or after December 31, 2008, any amount
1633	1633	20 included in gross income under Section 87 of the
1634	1634	21 Internal Revenue Code and the policyholders' share of
1635	1635	22 tax-exempt interest of a life insurance company under
1636	1636	23 Section 807(a)(2)(B) of the Internal Revenue Code (in
1637	1637	24 the case of a life insurance company with gross income
1638	1638	25 from a decrease in reserves for the tax year) or
1639	1639	26 Section 807(b)(1)(B) of the Internal Revenue Code (in
1640	1640
1641	1641
1642	1642
1643	1643
1644	1644
1645	1645	HB3124 - 45 - LRB104 10028 HLH 20099 b
1646	1646
1647	1647
1648	1648	HB3124- 46 -LRB104 10028 HLH 20099 b HB3124 - 46 - LRB104 10028 HLH 20099 b
1649	1649	HB3124 - 46 - LRB104 10028 HLH 20099 b
1650	1650	1 the case of a life insurance company allowed a
1651	1651	2 deduction for an increase in reserves for the tax
1652	1652	3 year); the provisions of this subparagraph are exempt
1653	1653	4 from the provisions of Section 250;
1654	1654	5 (J) An amount equal to all amounts included in
1655	1655	6 such total which are exempt from taxation by this
1656	1656	7 State either by reason of its statutes or Constitution
1657	1657	8 or by reason of the Constitution, treaties or statutes
1658	1658	9 of the United States; provided that, in the case of any
1659	1659	10 statute of this State that exempts income derived from
1660	1660	11 bonds or other obligations from the tax imposed under
1661	1661	12 this Act, the amount exempted shall be the interest
1662	1662	13 net of bond premium amortization;
1663	1663	14 (K) An amount equal to those dividends included in
1664	1664	15 such total which were paid by a corporation which
1665	1665	16 conducts business operations in a River Edge
1666	1666	17 Redevelopment Zone or zones created under the River
1667	1667	18 Edge Redevelopment Zone Act and conducts substantially
1668	1668	19 all of its operations in a River Edge Redevelopment
1669	1669	20 Zone or zones. This subparagraph (K) is exempt from
1670	1670	21 the provisions of Section 250;
1671	1671	22 (L) An amount equal to those dividends included in
1672	1672	23 such total that were paid by a corporation that
1673	1673	24 conducts business operations in a federally designated
1674	1674	25 Foreign Trade Zone or Sub-Zone and that is designated
1675	1675	26 a High Impact Business located in Illinois; provided
1676	1676
1677	1677
1678	1678
1679	1679
1680	1680
1681	1681	HB3124 - 46 - LRB104 10028 HLH 20099 b
1682	1682
1683	1683
1684	1684	HB3124- 47 -LRB104 10028 HLH 20099 b HB3124 - 47 - LRB104 10028 HLH 20099 b
1685	1685	HB3124 - 47 - LRB104 10028 HLH 20099 b
1686	1686	1 that dividends eligible for the deduction provided in
1687	1687	2 subparagraph (K) of paragraph 2 of this subsection
1688	1688	3 shall not be eligible for the deduction provided under
1689	1689	4 this subparagraph (L);
1690	1690	5 (M) For any taxpayer that is a financial
1691	1691	6 organization within the meaning of Section 304(c) of
1692	1692	7 this Act, an amount included in such total as interest
1693	1693	8 income from a loan or loans made by such taxpayer to a
1694	1694	9 borrower, to the extent that such a loan is secured by
1695	1695	10 property which is eligible for the River Edge
1696	1696	11 Redevelopment Zone Investment Credit. To determine the
1697	1697	12 portion of a loan or loans that is secured by property
1698	1698	13 eligible for a Section 201(f) investment credit to the
1699	1699	14 borrower, the entire principal amount of the loan or
1700	1700	15 loans between the taxpayer and the borrower should be
1701	1701	16 divided into the basis of the Section 201(f)
1702	1702	17 investment credit property which secures the loan or
1703	1703	18 loans, using for this purpose the original basis of
1704	1704	19 such property on the date that it was placed in service
1705	1705	20 in the River Edge Redevelopment Zone. The subtraction
1706	1706	21 modification available to the taxpayer in any year
1707	1707	22 under this subsection shall be that portion of the
1708	1708	23 total interest paid by the borrower with respect to
1709	1709	24 such loan attributable to the eligible property as
1710	1710	25 calculated under the previous sentence. This
1711	1711	26 subparagraph (M) is exempt from the provisions of
1712	1712
1713	1713
1714	1714
1715	1715
1716	1716
1717	1717	HB3124 - 47 - LRB104 10028 HLH 20099 b
1718	1718
1719	1719
1720	1720	HB3124- 48 -LRB104 10028 HLH 20099 b HB3124 - 48 - LRB104 10028 HLH 20099 b
1721	1721	HB3124 - 48 - LRB104 10028 HLH 20099 b
1722	1722	1 Section 250;
1723	1723	2 (M-1) For any taxpayer that is a financial
1724	1724	3 organization within the meaning of Section 304(c) of
1725	1725	4 this Act, an amount included in such total as interest
1726	1726	5 income from a loan or loans made by such taxpayer to a
1727	1727	6 borrower, to the extent that such a loan is secured by
1728	1728	7 property which is eligible for the High Impact
1729	1729	8 Business Investment Credit. To determine the portion
1730	1730	9 of a loan or loans that is secured by property eligible
1731	1731	10 for a Section 201(h) investment credit to the
1732	1732	11 borrower, the entire principal amount of the loan or
1733	1733	12 loans between the taxpayer and the borrower should be
1734	1734	13 divided into the basis of the Section 201(h)
1735	1735	14 investment credit property which secures the loan or
1736	1736	15 loans, using for this purpose the original basis of
1737	1737	16 such property on the date that it was placed in service
1738	1738	17 in a federally designated Foreign Trade Zone or
1739	1739	18 Sub-Zone located in Illinois. No taxpayer that is
1740	1740	19 eligible for the deduction provided in subparagraph
1741	1741	20 (M) of paragraph (2) of this subsection shall be
1742	1742	21 eligible for the deduction provided under this
1743	1743	22 subparagraph (M-1). The subtraction modification
1744	1744	23 available to taxpayers in any year under this
1745	1745	24 subsection shall be that portion of the total interest
1746	1746	25 paid by the borrower with respect to such loan
1747	1747	26 attributable to the eligible property as calculated
1748	1748
1749	1749
1750	1750
1751	1751
1752	1752
1753	1753	HB3124 - 48 - LRB104 10028 HLH 20099 b
1754	1754
1755	1755
1756	1756	HB3124- 49 -LRB104 10028 HLH 20099 b HB3124 - 49 - LRB104 10028 HLH 20099 b
1757	1757	HB3124 - 49 - LRB104 10028 HLH 20099 b
1758	1758	1 under the previous sentence;
1759	1759	2 (N) Two times any contribution made during the
1760	1760	3 taxable year to a designated zone organization to the
1761	1761	4 extent that the contribution (i) qualifies as a
1762	1762	5 charitable contribution under subsection (c) of
1763	1763	6 Section 170 of the Internal Revenue Code and (ii)
1764	1764	7 must, by its terms, be used for a project approved by
1765	1765	8 the Department of Commerce and Economic Opportunity
1766	1766	9 under Section 11 of the Illinois Enterprise Zone Act
1767	1767	10 or under Section 10-10 of the River Edge Redevelopment
1768	1768	11 Zone Act. This subparagraph (N) is exempt from the
1769	1769	12 provisions of Section 250;
1770	1770	13 (O) An amount equal to: (i) 85% for taxable years
1771	1771	14 ending on or before December 31, 1992, or, a
1772	1772	15 percentage equal to the percentage allowable under
1773	1773	16 Section 243(a)(1) of the Internal Revenue Code of 1986
1774	1774	17 for taxable years ending after December 31, 1992, of
1775	1775	18 the amount by which dividends included in taxable
1776	1776	19 income and received from a corporation that is not
1777	1777	20 created or organized under the laws of the United
1778	1778	21 States or any state or political subdivision thereof,
1779	1779	22 including, for taxable years ending on or after
1780	1780	23 December 31, 1988, dividends received or deemed
1781	1781	24 received or paid or deemed paid under Sections 951
1782	1782	25 through 965 of the Internal Revenue Code, exceed the
1783	1783	26 amount of the modification provided under subparagraph
1784	1784
1785	1785
1786	1786
1787	1787
1788	1788
1789	1789	HB3124 - 49 - LRB104 10028 HLH 20099 b
1790	1790
1791	1791
1792	1792	HB3124- 50 -LRB104 10028 HLH 20099 b HB3124 - 50 - LRB104 10028 HLH 20099 b
1793	1793	HB3124 - 50 - LRB104 10028 HLH 20099 b
1794	1794	1 (G) of paragraph (2) of this subsection (b) which is
1795	1795	2 related to such dividends, and including, for taxable
1796	1796	3 years ending on or after December 31, 2008, dividends
1797	1797	4 received from a captive real estate investment trust;
1798	1798	5 plus (ii) 100% of the amount by which dividends,
1799	1799	6 included in taxable income and received, including,
1800	1800	7 for taxable years ending on or after December 31,
1801	1801	8 1988, dividends received or deemed received or paid or
1802	1802	9 deemed paid under Sections 951 through 964 of the
1803	1803	10 Internal Revenue Code and including, for taxable years
1804	1804	11 ending on or after December 31, 2008, dividends
1805	1805	12 received from a captive real estate investment trust,
1806	1806	13 from any such corporation specified in clause (i) that
1807	1807	14 would but for the provisions of Section 1504(b)(3) of
1808	1808	15 the Internal Revenue Code be treated as a member of the
1809	1809	16 affiliated group which includes the dividend
1810	1810	17 recipient, exceed the amount of the modification
1811	1811	18 provided under subparagraph (G) of paragraph (2) of
1812	1812	19 this subsection (b) which is related to such
1813	1813	20 dividends. For taxable years ending on or after June
1814	1814	21 30, 2021, (i) for purposes of this subparagraph, the
1815	1815	22 term "dividend" does not include any amount treated as
1816	1816	23 a dividend under Section 1248 of the Internal Revenue
1817	1817	24 Code, and (ii) this subparagraph shall not apply to
1818	1818	25 dividends for which a deduction is allowed under
1819	1819	26 Section 245(a) of the Internal Revenue Code. This
1820	1820
1821	1821
1822	1822
1823	1823
1824	1824
1825	1825	HB3124 - 50 - LRB104 10028 HLH 20099 b
1826	1826
1827	1827
1828	1828	HB3124- 51 -LRB104 10028 HLH 20099 b HB3124 - 51 - LRB104 10028 HLH 20099 b
1829	1829	HB3124 - 51 - LRB104 10028 HLH 20099 b
1830	1830	1 subparagraph (O) is exempt from the provisions of
1831	1831	2 Section 250 of this Act;
1832	1832	3 (P) An amount equal to any contribution made to a
1833	1833	4 job training project established pursuant to the Tax
1834	1834	5 Increment Allocation Redevelopment Act;
1835	1835	6 (Q) An amount equal to the amount of the deduction
1836	1836	7 used to compute the federal income tax credit for
1837	1837	8 restoration of substantial amounts held under claim of
1838	1838	9 right for the taxable year pursuant to Section 1341 of
1839	1839	10 the Internal Revenue Code;
1840	1840	11 (R) On and after July 20, 1999, in the case of an
1841	1841	12 attorney-in-fact with respect to whom an interinsurer
1842	1842	13 or a reciprocal insurer has made the election under
1843	1843	14 Section 835 of the Internal Revenue Code, 26 U.S.C.
1844	1844	15 835, an amount equal to the excess, if any, of the
1845	1845	16 amounts paid or incurred by that interinsurer or
1846	1846	17 reciprocal insurer in the taxable year to the
1847	1847	18 attorney-in-fact over the deduction allowed to that
1848	1848	19 interinsurer or reciprocal insurer with respect to the
1849	1849	20 attorney-in-fact under Section 835(b) of the Internal
1850	1850	21 Revenue Code for the taxable year; the provisions of
1851	1851	22 this subparagraph are exempt from the provisions of
1852	1852	23 Section 250;
1853	1853	24 (S) For taxable years ending on or after December
1854	1854	25 31, 1997, in the case of a Subchapter S corporation, an
1855	1855	26 amount equal to all amounts of income allocable to a
1856	1856
1857	1857
1858	1858
1859	1859
1860	1860
1861	1861	HB3124 - 51 - LRB104 10028 HLH 20099 b
1862	1862
1863	1863
1864	1864	HB3124- 52 -LRB104 10028 HLH 20099 b HB3124 - 52 - LRB104 10028 HLH 20099 b
1865	1865	HB3124 - 52 - LRB104 10028 HLH 20099 b
1866	1866	1 shareholder subject to the Personal Property Tax
1867	1867	2 Replacement Income Tax imposed by subsections (c) and
1868	1868	3 (d) of Section 201 of this Act, including amounts
1869	1869	4 allocable to organizations exempt from federal income
1870	1870	5 tax by reason of Section 501(a) of the Internal
1871	1871	6 Revenue Code. This subparagraph (S) is exempt from the
1872	1872	7 provisions of Section 250;
1873	1873	8 (T) For taxable years 2001 and thereafter, for the
1874	1874	9 taxable year in which the bonus depreciation deduction
1875	1875	10 is taken on the taxpayer's federal income tax return
1876	1876	11 under subsection (k) of Section 168 of the Internal
1877	1877	12 Revenue Code and for each applicable taxable year
1878	1878	13 thereafter, an amount equal to "x", where:
1879	1879	14 (1) "y" equals the amount of the depreciation
1880	1880	15 deduction taken for the taxable year on the
1881	1881	16 taxpayer's federal income tax return on property
1882	1882	17 for which the bonus depreciation deduction was
1883	1883	18 taken in any year under subsection (k) of Section
1884	1884	19 168 of the Internal Revenue Code, but not
1885	1885	20 including the bonus depreciation deduction;
1886	1886	21 (2) for taxable years ending on or before
1887	1887	22 December 31, 2005, "x" equals "y" multiplied by 30
1888	1888	23 and then divided by 70 (or "y" multiplied by
1889	1889	24 0.429); and
1890	1890	25 (3) for taxable years ending after December
1891	1891	26 31, 2005:
1892	1892
1893	1893
1894	1894
1895	1895
1896	1896
1897	1897	HB3124 - 52 - LRB104 10028 HLH 20099 b
1898	1898
1899	1899
1900	1900	HB3124- 53 -LRB104 10028 HLH 20099 b HB3124 - 53 - LRB104 10028 HLH 20099 b
1901	1901	HB3124 - 53 - LRB104 10028 HLH 20099 b
1902	1902	1 (i) for property on which a bonus
1903	1903	2 depreciation deduction of 30% of the adjusted
1904	1904	3 basis was taken, "x" equals "y" multiplied by
1905	1905	4 30 and then divided by 70 (or "y" multiplied
1906	1906	5 by 0.429);
1907	1907	6 (ii) for property on which a bonus
1908	1908	7 depreciation deduction of 50% of the adjusted
1909	1909	8 basis was taken, "x" equals "y" multiplied by
1910	1910	9 1.0;
1911	1911	10 (iii) for property on which a bonus
1912	1912	11 depreciation deduction of 100% of the adjusted
1913	1913	12 basis was taken in a taxable year ending on or
1914	1914	13 after December 31, 2021, "x" equals the
1915	1915	14 depreciation deduction that would be allowed
1916	1916	15 on that property if the taxpayer had made the
1917	1917	16 election under Section 168(k)(7) of the
1918	1918	17 Internal Revenue Code to not claim bonus
1919	1919	18 depreciation on that property; and
1920	1920	19 (iv) for property on which a bonus
1921	1921	20 depreciation deduction of a percentage other
1922	1922	21 than 30%, 50% or 100% of the adjusted basis
1923	1923	22 was taken in a taxable year ending on or after
1924	1924	23 December 31, 2021, "x" equals "y" multiplied
1925	1925	24 by 100 times the percentage bonus depreciation
1926	1926	25 on the property (that is, 100(bonus%)) and
1927	1927	26 then divided by 100 times 1 minus the
1928	1928
1929	1929
1930	1930
1931	1931
1932	1932
1933	1933	HB3124 - 53 - LRB104 10028 HLH 20099 b
1934	1934
1935	1935
1936	1936	HB3124- 54 -LRB104 10028 HLH 20099 b HB3124 - 54 - LRB104 10028 HLH 20099 b
1937	1937	HB3124 - 54 - LRB104 10028 HLH 20099 b
1938	1938	1 percentage bonus depreciation on the property
1939	1939	2 (that is, 100(1-bonus%)).
1940	1940	3 The aggregate amount deducted under this
1941	1941	4 subparagraph in all taxable years for any one piece of
1942	1942	5 property may not exceed the amount of the bonus
1943	1943	6 depreciation deduction taken on that property on the
1944	1944	7 taxpayer's federal income tax return under subsection
1945	1945	8 (k) of Section 168 of the Internal Revenue Code. This
1946	1946	9 subparagraph (T) is exempt from the provisions of
1947	1947	10 Section 250;
1948	1948	11 (U) If the taxpayer sells, transfers, abandons, or
1949	1949	12 otherwise disposes of property for which the taxpayer
1950	1950	13 was required in any taxable year to make an addition
1951	1951	14 modification under subparagraph (E-10), then an amount
1952	1952	15 equal to that addition modification.
1953	1953	16 If the taxpayer continues to own property through
1954	1954	17 the last day of the last tax year for which a taxpayer
1955	1955	18 may claim a depreciation deduction for federal income
1956	1956	19 tax purposes a subtraction is allowed with respect to
1957	1957	20 that property under subparagraph (T) and for which the
1958	1958	21 taxpayer was required in any taxable year to make an
1959	1959	22 addition modification under subparagraph (E-10), then
1960	1960	23 an amount equal to that addition modification.
1961	1961	24 The taxpayer is allowed to take the deduction
1962	1962	25 under this subparagraph only once with respect to any
1963	1963	26 one piece of property.
1964	1964
1965	1965
1966	1966
1967	1967
1968	1968
1969	1969	HB3124 - 54 - LRB104 10028 HLH 20099 b
1970	1970
1971	1971
1972	1972	HB3124- 55 -LRB104 10028 HLH 20099 b HB3124 - 55 - LRB104 10028 HLH 20099 b
1973	1973	HB3124 - 55 - LRB104 10028 HLH 20099 b
1974	1974	1 This subparagraph (U) is exempt from the
1975	1975	2 provisions of Section 250;
1976	1976	3 (V) The amount of: (i) any interest income (net of
1977	1977	4 the deductions allocable thereto) taken into account
1978	1978	5 for the taxable year with respect to a transaction
1979	1979	6 with a taxpayer that is required to make an addition
1980	1980	7 modification with respect to such transaction under
1981	1981	8 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1982	1982	9 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1983	1983	10 the amount of such addition modification, (ii) any
1984	1984	11 income from intangible property (net of the deductions
1985	1985	12 allocable thereto) taken into account for the taxable
1986	1986	13 year with respect to a transaction with a taxpayer
1987	1987	14 that is required to make an addition modification with
1988	1988	15 respect to such transaction under Section
1989	1989	16 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
1990	1990	17 203(d)(2)(D-8), but not to exceed the amount of such
1991	1991	18 addition modification, and (iii) any insurance premium
1992	1992	19 income (net of deductions allocable thereto) taken
1993	1993	20 into account for the taxable year with respect to a
1994	1994	21 transaction with a taxpayer that is required to make
1995	1995	22 an addition modification with respect to such
1996	1996	23 transaction under Section 203(a)(2)(D-19), Section
1997	1997	24 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
1998	1998	25 203(d)(2)(D-9), but not to exceed the amount of that
1999	1999	26 addition modification. This subparagraph (V) is exempt
2000	2000
2001	2001
2002	2002
2003	2003
2004	2004
2005	2005	HB3124 - 55 - LRB104 10028 HLH 20099 b
2006	2006
2007	2007
2008	2008	HB3124- 56 -LRB104 10028 HLH 20099 b HB3124 - 56 - LRB104 10028 HLH 20099 b
2009	2009	HB3124 - 56 - LRB104 10028 HLH 20099 b
2010	2010	1 from the provisions of Section 250;
2011	2011	2 (W) An amount equal to the interest income taken
2012	2012	3 into account for the taxable year (net of the
2013	2013	4 deductions allocable thereto) with respect to
2014	2014	5 transactions with (i) a foreign person who would be a
2015	2015	6 member of the taxpayer's unitary business group but
2016	2016	7 for the fact that the foreign person's business
2017	2017	8 activity outside the United States is 80% or more of
2018	2018	9 that person's total business activity and (ii) for
2019	2019	10 taxable years ending on or after December 31, 2008, to
2020	2020	11 a person who would be a member of the same unitary
2021	2021	12 business group but for the fact that the person is
2022	2022	13 prohibited under Section 1501(a)(27) from being
2023	2023	14 included in the unitary business group because he or
2024	2024	15 she is ordinarily required to apportion business
2025	2025	16 income under different subsections of Section 304, but
2026	2026	17 not to exceed the addition modification required to be
2027	2027	18 made for the same taxable year under Section
2028	2028	19 203(b)(2)(E-12) for interest paid, accrued, or
2029	2029	20 incurred, directly or indirectly, to the same person.
2030	2030	21 This subparagraph (W) is exempt from the provisions of
2031	2031	22 Section 250;
2032	2032	23 (X) An amount equal to the income from intangible
2033	2033	24 property taken into account for the taxable year (net
2034	2034	25 of the deductions allocable thereto) with respect to
2035	2035	26 transactions with (i) a foreign person who would be a
2036	2036
2037	2037
2038	2038
2039	2039
2040	2040
2041	2041	HB3124 - 56 - LRB104 10028 HLH 20099 b
2042	2042
2043	2043
2044	2044	HB3124- 57 -LRB104 10028 HLH 20099 b HB3124 - 57 - LRB104 10028 HLH 20099 b
2045	2045	HB3124 - 57 - LRB104 10028 HLH 20099 b
2046	2046	1 member of the taxpayer's unitary business group but
2047	2047	2 for the fact that the foreign person's business
2048	2048	3 activity outside the United States is 80% or more of
2049	2049	4 that person's total business activity and (ii) for
2050	2050	5 taxable years ending on or after December 31, 2008, to
2051	2051	6 a person who would be a member of the same unitary
2052	2052	7 business group but for the fact that the person is
2053	2053	8 prohibited under Section 1501(a)(27) from being
2054	2054	9 included in the unitary business group because he or
2055	2055	10 she is ordinarily required to apportion business
2056	2056	11 income under different subsections of Section 304, but
2057	2057	12 not to exceed the addition modification required to be
2058	2058	13 made for the same taxable year under Section
2059	2059	14 203(b)(2)(E-13) for intangible expenses and costs
2060	2060	15 paid, accrued, or incurred, directly or indirectly, to
2061	2061	16 the same foreign person. This subparagraph (X) is
2062	2062	17 exempt from the provisions of Section 250;
2063	2063	18 (Y) For taxable years ending on or after December
2064	2064	19 31, 2011, in the case of a taxpayer who was required to
2065	2065	20 add back any insurance premiums under Section
2066	2066	21 203(b)(2)(E-14), such taxpayer may elect to subtract
2067	2067	22 that part of a reimbursement received from the
2068	2068	23 insurance company equal to the amount of the expense
2069	2069	24 or loss (including expenses incurred by the insurance
2070	2070	25 company) that would have been taken into account as a
2071	2071	26 deduction for federal income tax purposes if the
2072	2072
2073	2073
2074	2074
2075	2075
2076	2076
2077	2077	HB3124 - 57 - LRB104 10028 HLH 20099 b
2078	2078
2079	2079
2080	2080	HB3124- 58 -LRB104 10028 HLH 20099 b HB3124 - 58 - LRB104 10028 HLH 20099 b
2081	2081	HB3124 - 58 - LRB104 10028 HLH 20099 b
2082	2082	1 expense or loss had been uninsured. If a taxpayer
2083	2083	2 makes the election provided for by this subparagraph
2084	2084	3 (Y), the insurer to which the premiums were paid must
2085	2085	4 add back to income the amount subtracted by the
2086	2086	5 taxpayer pursuant to this subparagraph (Y). This
2087	2087	6 subparagraph (Y) is exempt from the provisions of
2088	2088	7 Section 250;
2089	2089	8 (Z) The difference between the nondeductible
2090	2090	9 controlled foreign corporation dividends under Section
2091	2091	10 965(e)(3) of the Internal Revenue Code over the
2092	2092	11 taxable income of the taxpayer, computed without
2093	2093	12 regard to Section 965(e)(2)(A) of the Internal Revenue
2094	2094	13 Code, and without regard to any net operating loss
2095	2095	14 deduction. This subparagraph (Z) is exempt from the
2096	2096	15 provisions of Section 250; and
2097	2097	16 (AA) For taxable years beginning on or after
2098	2098	17 January 1, 2023, for any cannabis establishment
2099	2099	18 operating in this State and licensed under the
2100	2100	19 Cannabis Regulation and Tax Act or any cannabis
2101	2101	20 cultivation center or medical cannabis dispensing
2102	2102	21 organization operating in this State and licensed
2103	2103	22 under the Compassionate Use of Medical Cannabis
2104	2104	23 Program Act, an amount equal to the deductions that
2105	2105	24 were disallowed under Section 280E of the Internal
2106	2106	25 Revenue Code for the taxable year and that would not be
2107	2107	26 added back under this subsection. The provisions of
2108	2108
2109	2109
2110	2110
2111	2111
2112	2112
2113	2113	HB3124 - 58 - LRB104 10028 HLH 20099 b
2114	2114
2115	2115
2116	2116	HB3124- 59 -LRB104 10028 HLH 20099 b HB3124 - 59 - LRB104 10028 HLH 20099 b
2117	2117	HB3124 - 59 - LRB104 10028 HLH 20099 b
2118	2118	1 this subparagraph (AA) are exempt from the provisions
2119	2119	2 of Section 250.
2120	2120	3 (3) Special rule. For purposes of paragraph (2)(A),
2121	2121	4 "gross income" in the case of a life insurance company,
2122	2122	5 for tax years ending on and after December 31, 1994, and
2123	2123	6 prior to December 31, 2011, shall mean the gross
2124	2124	7 investment income for the taxable year and, for tax years
2125	2125	8 ending on or after December 31, 2011, shall mean all
2126	2126	9 amounts included in life insurance gross income under
2127	2127	10 Section 803(a)(3) of the Internal Revenue Code.
2128	2128	11 (c) Trusts and estates.
2129	2129	12 (1) In general. In the case of a trust or estate, base
2130	2130	13 income means an amount equal to the taxpayer's taxable
2131	2131	14 income for the taxable year as modified by paragraph (2).
2132	2132	15 (2) Modifications. Subject to the provisions of
2133	2133	16 paragraph (3), the taxable income referred to in paragraph
2134	2134	17 (1) shall be modified by adding thereto the sum of the
2135	2135	18 following amounts:
2136	2136	19 (A) An amount equal to all amounts paid or accrued
2137	2137	20 to the taxpayer as interest or dividends during the
2138	2138	21 taxable year to the extent excluded from gross income
2139	2139	22 in the computation of taxable income;
2140	2140	23 (B) In the case of (i) an estate, $600; (ii) a
2141	2141	24 trust which, under its governing instrument, is
2142	2142	25 required to distribute all of its income currently,
2143	2143
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148	HB3124 - 59 - LRB104 10028 HLH 20099 b
2149	2149
2150	2150
2151	2151	HB3124- 60 -LRB104 10028 HLH 20099 b HB3124 - 60 - LRB104 10028 HLH 20099 b
2152	2152	HB3124 - 60 - LRB104 10028 HLH 20099 b
2153	2153	1 $300; and (iii) any other trust, $100, but in each such
2154	2154	2 case, only to the extent such amount was deducted in
2155	2155	3 the computation of taxable income;
2156	2156	4 (C) An amount equal to the amount of tax imposed by
2157	2157	5 this Act to the extent deducted from gross income in
2158	2158	6 the computation of taxable income for the taxable
2159	2159	7 year;
2160	2160	8 (D) The amount of any net operating loss deduction
2161	2161	9 taken in arriving at taxable income, other than a net
2162	2162	10 operating loss carried forward from a taxable year
2163	2163	11 ending prior to December 31, 1986;
2164	2164	12 (E) For taxable years in which a net operating
2165	2165	13 loss carryback or carryforward from a taxable year
2166	2166	14 ending prior to December 31, 1986 is an element of
2167	2167	15 taxable income under paragraph (1) of subsection (e)
2168	2168	16 or subparagraph (E) of paragraph (2) of subsection
2169	2169	17 (e), the amount by which addition modifications other
2170	2170	18 than those provided by this subparagraph (E) exceeded
2171	2171	19 subtraction modifications in such taxable year, with
2172	2172	20 the following limitations applied in the order that
2173	2173	21 they are listed:
2174	2174	22 (i) the addition modification relating to the
2175	2175	23 net operating loss carried back or forward to the
2176	2176	24 taxable year from any taxable year ending prior to
2177	2177	25 December 31, 1986 shall be reduced by the amount
2178	2178	26 of addition modification under this subparagraph
2179	2179
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184	HB3124 - 60 - LRB104 10028 HLH 20099 b
2185	2185
2186	2186
2187	2187	HB3124- 61 -LRB104 10028 HLH 20099 b HB3124 - 61 - LRB104 10028 HLH 20099 b
2188	2188	HB3124 - 61 - LRB104 10028 HLH 20099 b
2189	2189	1 (E) which related to that net operating loss and
2190	2190	2 which was taken into account in calculating the
2191	2191	3 base income of an earlier taxable year, and
2192	2192	4 (ii) the addition modification relating to the
2193	2193	5 net operating loss carried back or forward to the
2194	2194	6 taxable year from any taxable year ending prior to
2195	2195	7 December 31, 1986 shall not exceed the amount of
2196	2196	8 such carryback or carryforward;
2197	2197	9 For taxable years in which there is a net
2198	2198	10 operating loss carryback or carryforward from more
2199	2199	11 than one other taxable year ending prior to December
2200	2200	12 31, 1986, the addition modification provided in this
2201	2201	13 subparagraph (E) shall be the sum of the amounts
2202	2202	14 computed independently under the preceding provisions
2203	2203	15 of this subparagraph (E) for each such taxable year;
2204	2204	16 (F) For taxable years ending on or after January
2205	2205	17 1, 1989, an amount equal to the tax deducted pursuant
2206	2206	18 to Section 164 of the Internal Revenue Code if the
2207	2207	19 trust or estate is claiming the same tax for purposes
2208	2208	20 of the Illinois foreign tax credit under Section 601
2209	2209	21 of this Act;
2210	2210	22 (G) An amount equal to the amount of the capital
2211	2211	23 gain deduction allowable under the Internal Revenue
2212	2212	24 Code, to the extent deducted from gross income in the
2213	2213	25 computation of taxable income;
2214	2214	26 (G-5) For taxable years ending after December 31,
2215	2215
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220	HB3124 - 61 - LRB104 10028 HLH 20099 b
2221	2221
2222	2222
2223	2223	HB3124- 62 -LRB104 10028 HLH 20099 b HB3124 - 62 - LRB104 10028 HLH 20099 b
2224	2224	HB3124 - 62 - LRB104 10028 HLH 20099 b
2225	2225	1 1997, an amount equal to any eligible remediation
2226	2226	2 costs that the trust or estate deducted in computing
2227	2227	3 adjusted gross income and for which the trust or
2228	2228	4 estate claims a credit under subsection (l) of Section
2229	2229	5 201;
2230	2230	6 (G-10) For taxable years 2001 and thereafter, an
2231	2231	7 amount equal to the bonus depreciation deduction taken
2232	2232	8 on the taxpayer's federal income tax return for the
2233	2233	9 taxable year under subsection (k) of Section 168 of
2234	2234	10 the Internal Revenue Code; and
2235	2235	11 (G-11) If the taxpayer sells, transfers, abandons,
2236	2236	12 or otherwise disposes of property for which the
2237	2237	13 taxpayer was required in any taxable year to make an
2238	2238	14 addition modification under subparagraph (G-10), then
2239	2239	15 an amount equal to the aggregate amount of the
2240	2240	16 deductions taken in all taxable years under
2241	2241	17 subparagraph (R) with respect to that property.
2242	2242	18 If the taxpayer continues to own property through
2243	2243	19 the last day of the last tax year for which a taxpayer
2244	2244	20 may claim a depreciation deduction for federal income
2245	2245	21 tax purposes a subtraction is allowed with respect to
2246	2246	22 that property under subparagraph (R) and for which the
2247	2247	23 taxpayer was allowed in any taxable year to make a
2248	2248	24 subtraction modification under subparagraph (R), then
2249	2249	25 an amount equal to that subtraction modification.
2250	2250	26 The taxpayer is required to make the addition
2251	2251
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256	HB3124 - 62 - LRB104 10028 HLH 20099 b
2257	2257
2258	2258
2259	2259	HB3124- 63 -LRB104 10028 HLH 20099 b HB3124 - 63 - LRB104 10028 HLH 20099 b
2260	2260	HB3124 - 63 - LRB104 10028 HLH 20099 b
2261	2261	1 modification under this subparagraph only once with
2262	2262	2 respect to any one piece of property;
2263	2263	3 (G-12) An amount equal to the amount otherwise
2264	2264	4 allowed as a deduction in computing base income for
2265	2265	5 interest paid, accrued, or incurred, directly or
2266	2266	6 indirectly, (i) for taxable years ending on or after
2267	2267	7 December 31, 2004, to a foreign person who would be a
2268	2268	8 member of the same unitary business group but for the
2269	2269	9 fact that the foreign person's business activity
2270	2270	10 outside the United States is 80% or more of the foreign
2271	2271	11 person's total business activity and (ii) for taxable
2272	2272	12 years ending on or after December 31, 2008, to a person
2273	2273	13 who would be a member of the same unitary business
2274	2274	14 group but for the fact that the person is prohibited
2275	2275	15 under Section 1501(a)(27) from being included in the
2276	2276	16 unitary business group because he or she is ordinarily
2277	2277	17 required to apportion business income under different
2278	2278	18 subsections of Section 304. The addition modification
2279	2279	19 required by this subparagraph shall be reduced to the
2280	2280	20 extent that dividends were included in base income of
2281	2281	21 the unitary group for the same taxable year and
2282	2282	22 received by the taxpayer or by a member of the
2283	2283	23 taxpayer's unitary business group (including amounts
2284	2284	24 included in gross income pursuant to Sections 951
2285	2285	25 through 964 of the Internal Revenue Code and amounts
2286	2286	26 included in gross income under Section 78 of the
2287	2287
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292	HB3124 - 63 - LRB104 10028 HLH 20099 b
2293	2293
2294	2294
2295	2295	HB3124- 64 -LRB104 10028 HLH 20099 b HB3124 - 64 - LRB104 10028 HLH 20099 b
2296	2296	HB3124 - 64 - LRB104 10028 HLH 20099 b
2297	2297	1 Internal Revenue Code) with respect to the stock of
2298	2298	2 the same person to whom the interest was paid,
2299	2299	3 accrued, or incurred.
2300	2300	4 This paragraph shall not apply to the following:
2301	2301	5 (i) an item of interest paid, accrued, or
2302	2302	6 incurred, directly or indirectly, to a person who
2303	2303	7 is subject in a foreign country or state, other
2304	2304	8 than a state which requires mandatory unitary
2305	2305	9 reporting, to a tax on or measured by net income
2306	2306	10 with respect to such interest; or
2307	2307	11 (ii) an item of interest paid, accrued, or
2308	2308	12 incurred, directly or indirectly, to a person if
2309	2309	13 the taxpayer can establish, based on a
2310	2310	14 preponderance of the evidence, both of the
2311	2311	15 following:
2312	2312	16 (a) the person, during the same taxable
2313	2313	17 year, paid, accrued, or incurred, the interest
2314	2314	18 to a person that is not a related member, and
2315	2315	19 (b) the transaction giving rise to the
2316	2316	20 interest expense between the taxpayer and the
2317	2317	21 person did not have as a principal purpose the
2318	2318	22 avoidance of Illinois income tax, and is paid
2319	2319	23 pursuant to a contract or agreement that
2320	2320	24 reflects an arm's-length interest rate and
2321	2321	25 terms; or
2322	2322	26 (iii) the taxpayer can establish, based on
2323	2323
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328	HB3124 - 64 - LRB104 10028 HLH 20099 b
2329	2329
2330	2330
2331	2331	HB3124- 65 -LRB104 10028 HLH 20099 b HB3124 - 65 - LRB104 10028 HLH 20099 b
2332	2332	HB3124 - 65 - LRB104 10028 HLH 20099 b
2333	2333	1 clear and convincing evidence, that the interest
2334	2334	2 paid, accrued, or incurred relates to a contract
2335	2335	3 or agreement entered into at arm's-length rates
2336	2336	4 and terms and the principal purpose for the
2337	2337	5 payment is not federal or Illinois tax avoidance;
2338	2338	6 or
2339	2339	7 (iv) an item of interest paid, accrued, or
2340	2340	8 incurred, directly or indirectly, to a person if
2341	2341	9 the taxpayer establishes by clear and convincing
2342	2342	10 evidence that the adjustments are unreasonable; or
2343	2343	11 if the taxpayer and the Director agree in writing
2344	2344	12 to the application or use of an alternative method
2345	2345	13 of apportionment under Section 304(f).
2346	2346	14 Nothing in this subsection shall preclude the
2347	2347	15 Director from making any other adjustment
2348	2348	16 otherwise allowed under Section 404 of this Act
2349	2349	17 for any tax year beginning after the effective
2350	2350	18 date of this amendment provided such adjustment is
2351	2351	19 made pursuant to regulation adopted by the
2352	2352	20 Department and such regulations provide methods
2353	2353	21 and standards by which the Department will utilize
2354	2354	22 its authority under Section 404 of this Act;
2355	2355	23 (G-13) An amount equal to the amount of intangible
2356	2356	24 expenses and costs otherwise allowed as a deduction in
2357	2357	25 computing base income, and that were paid, accrued, or
2358	2358	26 incurred, directly or indirectly, (i) for taxable
2359	2359
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364	HB3124 - 65 - LRB104 10028 HLH 20099 b
2365	2365
2366	2366
2367	2367	HB3124- 66 -LRB104 10028 HLH 20099 b HB3124 - 66 - LRB104 10028 HLH 20099 b
2368	2368	HB3124 - 66 - LRB104 10028 HLH 20099 b
2369	2369	1 years ending on or after December 31, 2004, to a
2370	2370	2 foreign person who would be a member of the same
2371	2371	3 unitary business group but for the fact that the
2372	2372	4 foreign person's business activity outside the United
2373	2373	5 States is 80% or more of that person's total business
2374	2374	6 activity and (ii) for taxable years ending on or after
2375	2375	7 December 31, 2008, to a person who would be a member of
2376	2376	8 the same unitary business group but for the fact that
2377	2377	9 the person is prohibited under Section 1501(a)(27)
2378	2378	10 from being included in the unitary business group
2379	2379	11 because he or she is ordinarily required to apportion
2380	2380	12 business income under different subsections of Section
2381	2381	13 304. The addition modification required by this
2382	2382	14 subparagraph shall be reduced to the extent that
2383	2383	15 dividends were included in base income of the unitary
2384	2384	16 group for the same taxable year and received by the
2385	2385	17 taxpayer or by a member of the taxpayer's unitary
2386	2386	18 business group (including amounts included in gross
2387	2387	19 income pursuant to Sections 951 through 964 of the
2388	2388	20 Internal Revenue Code and amounts included in gross
2389	2389	21 income under Section 78 of the Internal Revenue Code)
2390	2390	22 with respect to the stock of the same person to whom
2391	2391	23 the intangible expenses and costs were directly or
2392	2392	24 indirectly paid, incurred, or accrued. The preceding
2393	2393	25 sentence shall not apply to the extent that the same
2394	2394	26 dividends caused a reduction to the addition
2395	2395
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400	HB3124 - 66 - LRB104 10028 HLH 20099 b
2401	2401
2402	2402
2403	2403	HB3124- 67 -LRB104 10028 HLH 20099 b HB3124 - 67 - LRB104 10028 HLH 20099 b
2404	2404	HB3124 - 67 - LRB104 10028 HLH 20099 b
2405	2405	1 modification required under Section 203(c)(2)(G-12) of
2406	2406	2 this Act. As used in this subparagraph, the term
2407	2407	3 "intangible expenses and costs" includes: (1)
2408	2408	4 expenses, losses, and costs for or related to the
2409	2409	5 direct or indirect acquisition, use, maintenance or
2410	2410	6 management, ownership, sale, exchange, or any other
2411	2411	7 disposition of intangible property; (2) losses
2412	2412	8 incurred, directly or indirectly, from factoring
2413	2413	9 transactions or discounting transactions; (3) royalty,
2414	2414	10 patent, technical, and copyright fees; (4) licensing
2415	2415	11 fees; and (5) other similar expenses and costs. For
2416	2416	12 purposes of this subparagraph, "intangible property"
2417	2417	13 includes patents, patent applications, trade names,
2418	2418	14 trademarks, service marks, copyrights, mask works,
2419	2419	15 trade secrets, and similar types of intangible assets.
2420	2420	16 This paragraph shall not apply to the following:
2421	2421	17 (i) any item of intangible expenses or costs
2422	2422	18 paid, accrued, or incurred, directly or
2423	2423	19 indirectly, from a transaction with a person who
2424	2424	20 is subject in a foreign country or state, other
2425	2425	21 than a state which requires mandatory unitary
2426	2426	22 reporting, to a tax on or measured by net income
2427	2427	23 with respect to such item; or
2428	2428	24 (ii) any item of intangible expense or cost
2429	2429	25 paid, accrued, or incurred, directly or
2430	2430	26 indirectly, if the taxpayer can establish, based
2431	2431
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436	HB3124 - 67 - LRB104 10028 HLH 20099 b
2437	2437
2438	2438
2439	2439	HB3124- 68 -LRB104 10028 HLH 20099 b HB3124 - 68 - LRB104 10028 HLH 20099 b
2440	2440	HB3124 - 68 - LRB104 10028 HLH 20099 b
2441	2441	1 on a preponderance of the evidence, both of the
2442	2442	2 following:
2443	2443	3 (a) the person during the same taxable
2444	2444	4 year paid, accrued, or incurred, the
2445	2445	5 intangible expense or cost to a person that is
2446	2446	6 not a related member, and
2447	2447	7 (b) the transaction giving rise to the
2448	2448	8 intangible expense or cost between the
2449	2449	9 taxpayer and the person did not have as a
2450	2450	10 principal purpose the avoidance of Illinois
2451	2451	11 income tax, and is paid pursuant to a contract
2452	2452	12 or agreement that reflects arm's-length terms;
2453	2453	13 or
2454	2454	14 (iii) any item of intangible expense or cost
2455	2455	15 paid, accrued, or incurred, directly or
2456	2456	16 indirectly, from a transaction with a person if
2457	2457	17 the taxpayer establishes by clear and convincing
2458	2458	18 evidence, that the adjustments are unreasonable;
2459	2459	19 or if the taxpayer and the Director agree in
2460	2460	20 writing to the application or use of an
2461	2461	21 alternative method of apportionment under Section
2462	2462	22 304(f);
2463	2463	23 Nothing in this subsection shall preclude the
2464	2464	24 Director from making any other adjustment
2465	2465	25 otherwise allowed under Section 404 of this Act
2466	2466	26 for any tax year beginning after the effective
2467	2467
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472	HB3124 - 68 - LRB104 10028 HLH 20099 b
2473	2473
2474	2474
2475	2475	HB3124- 69 -LRB104 10028 HLH 20099 b HB3124 - 69 - LRB104 10028 HLH 20099 b
2476	2476	HB3124 - 69 - LRB104 10028 HLH 20099 b
2477	2477	1 date of this amendment provided such adjustment is
2478	2478	2 made pursuant to regulation adopted by the
2479	2479	3 Department and such regulations provide methods
2480	2480	4 and standards by which the Department will utilize
2481	2481	5 its authority under Section 404 of this Act;
2482	2482	6 (G-14) For taxable years ending on or after
2483	2483	7 December 31, 2008, an amount equal to the amount of
2484	2484	8 insurance premium expenses and costs otherwise allowed
2485	2485	9 as a deduction in computing base income, and that were
2486	2486	10 paid, accrued, or incurred, directly or indirectly, to
2487	2487	11 a person who would be a member of the same unitary
2488	2488	12 business group but for the fact that the person is
2489	2489	13 prohibited under Section 1501(a)(27) from being
2490	2490	14 included in the unitary business group because he or
2491	2491	15 she is ordinarily required to apportion business
2492	2492	16 income under different subsections of Section 304. The
2493	2493	17 addition modification required by this subparagraph
2494	2494	18 shall be reduced to the extent that dividends were
2495	2495	19 included in base income of the unitary group for the
2496	2496	20 same taxable year and received by the taxpayer or by a
2497	2497	21 member of the taxpayer's unitary business group
2498	2498	22 (including amounts included in gross income under
2499	2499	23 Sections 951 through 964 of the Internal Revenue Code
2500	2500	24 and amounts included in gross income under Section 78
2501	2501	25 of the Internal Revenue Code) with respect to the
2502	2502	26 stock of the same person to whom the premiums and costs
2503	2503
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508	HB3124 - 69 - LRB104 10028 HLH 20099 b
2509	2509
2510	2510
2511	2511	HB3124- 70 -LRB104 10028 HLH 20099 b HB3124 - 70 - LRB104 10028 HLH 20099 b
2512	2512	HB3124 - 70 - LRB104 10028 HLH 20099 b
2513	2513	1 were directly or indirectly paid, incurred, or
2514	2514	2 accrued. The preceding sentence does not apply to the
2515	2515	3 extent that the same dividends caused a reduction to
2516	2516	4 the addition modification required under Section
2517	2517	5 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2518	2518	6 Act;
2519	2519	7 (G-15) An amount equal to the credit allowable to
2520	2520	8 the taxpayer under Section 218(a) of this Act,
2521	2521	9 determined without regard to Section 218(c) of this
2522	2522	10 Act;
2523	2523	11 (G-16) For taxable years ending on or after
2524	2524	12 December 31, 2017, an amount equal to the deduction
2525	2525	13 allowed under Section 199 of the Internal Revenue Code
2526	2526	14 for the taxable year;
2527	2527	15 (G-17) the amount that is claimed as a federal
2528	2528	16 deduction when computing the taxpayer's federal
2529	2529	17 taxable income for the taxable year and that is
2530	2530	18 attributable to an endowment gift for which the
2531	2531	19 taxpayer receives a credit under the Illinois Gives
2532	2532	20 Tax Credit Act;
2533	2533	21 and by deducting from the total so obtained the sum of the
2534	2534	22 following amounts:
2535	2535	23 (H) An amount equal to all amounts included in
2536	2536	24 such total pursuant to the provisions of Sections
2537	2537	25 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2538	2538	26 of the Internal Revenue Code or included in such total
2539	2539
2540	2540
2541	2541
2542	2542
2543	2543
2544	2544	HB3124 - 70 - LRB104 10028 HLH 20099 b
2545	2545
2546	2546
2547	2547	HB3124- 71 -LRB104 10028 HLH 20099 b HB3124 - 71 - LRB104 10028 HLH 20099 b
2548	2548	HB3124 - 71 - LRB104 10028 HLH 20099 b
2549	2549	1 as distributions under the provisions of any
2550	2550	2 retirement or disability plan for employees of any
2551	2551	3 governmental agency or unit, or retirement payments to
2552	2552	4 retired partners, which payments are excluded in
2553	2553	5 computing net earnings from self employment by Section
2554	2554	6 1402 of the Internal Revenue Code and regulations
2555	2555	7 adopted pursuant thereto;
2556	2556	8 (I) The valuation limitation amount;
2557	2557	9 (J) An amount equal to the amount of any tax
2558	2558	10 imposed by this Act which was refunded to the taxpayer
2559	2559	11 and included in such total for the taxable year;
2560	2560	12 (K) An amount equal to all amounts included in
2561	2561	13 taxable income as modified by subparagraphs (A), (B),
2562	2562	14 (C), (D), (E), (F) and (G) which are exempt from
2563	2563	15 taxation by this State either by reason of its
2564	2564	16 statutes or Constitution or by reason of the
2565	2565	17 Constitution, treaties or statutes of the United
2566	2566	18 States; provided that, in the case of any statute of
2567	2567	19 this State that exempts income derived from bonds or
2568	2568	20 other obligations from the tax imposed under this Act,
2569	2569	21 the amount exempted shall be the interest net of bond
2570	2570	22 premium amortization;
2571	2571	23 (L) With the exception of any amounts subtracted
2572	2572	24 under subparagraph (K), an amount equal to the sum of
2573	2573	25 all amounts disallowed as deductions by (i) Sections
2574	2574	26 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2575	2575
2576	2576
2577	2577
2578	2578
2579	2579
2580	2580	HB3124 - 71 - LRB104 10028 HLH 20099 b
2581	2581
2582	2582
2583	2583	HB3124- 72 -LRB104 10028 HLH 20099 b HB3124 - 72 - LRB104 10028 HLH 20099 b
2584	2584	HB3124 - 72 - LRB104 10028 HLH 20099 b
2585	2585	1 and all amounts of expenses allocable to interest and
2586	2586	2 disallowed as deductions by Section 265(a)(1) of the
2587	2587	3 Internal Revenue Code; and (ii) for taxable years
2588	2588	4 ending on or after August 13, 1999, Sections
2589	2589	5 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2590	2590	6 Internal Revenue Code, plus, (iii) for taxable years
2591	2591	7 ending on or after December 31, 2011, Section
2592	2592	8 45G(e)(3) of the Internal Revenue Code and, for
2593	2593	9 taxable years ending on or after December 31, 2008,
2594	2594	10 any amount included in gross income under Section 87
2595	2595	11 of the Internal Revenue Code; the provisions of this
2596	2596	12 subparagraph are exempt from the provisions of Section
2597	2597	13 250;
2598	2598	14 (M) An amount equal to those dividends included in
2599	2599	15 such total which were paid by a corporation which
2600	2600	16 conducts business operations in a River Edge
2601	2601	17 Redevelopment Zone or zones created under the River
2602	2602	18 Edge Redevelopment Zone Act and conducts substantially
2603	2603	19 all of its operations in a River Edge Redevelopment
2604	2604	20 Zone or zones. This subparagraph (M) is exempt from
2605	2605	21 the provisions of Section 250;
2606	2606	22 (N) An amount equal to any contribution made to a
2607	2607	23 job training project established pursuant to the Tax
2608	2608	24 Increment Allocation Redevelopment Act;
2609	2609	25 (O) An amount equal to those dividends included in
2610	2610	26 such total that were paid by a corporation that
2611	2611
2612	2612
2613	2613
2614	2614
2615	2615
2616	2616	HB3124 - 72 - LRB104 10028 HLH 20099 b
2617	2617
2618	2618
2619	2619	HB3124- 73 -LRB104 10028 HLH 20099 b HB3124 - 73 - LRB104 10028 HLH 20099 b
2620	2620	HB3124 - 73 - LRB104 10028 HLH 20099 b
2621	2621	1 conducts business operations in a federally designated
2622	2622	2 Foreign Trade Zone or Sub-Zone and that is designated
2623	2623	3 a High Impact Business located in Illinois; provided
2624	2624	4 that dividends eligible for the deduction provided in
2625	2625	5 subparagraph (M) of paragraph (2) of this subsection
2626	2626	6 shall not be eligible for the deduction provided under
2627	2627	7 this subparagraph (O);
2628	2628	8 (P) An amount equal to the amount of the deduction
2629	2629	9 used to compute the federal income tax credit for
2630	2630	10 restoration of substantial amounts held under claim of
2631	2631	11 right for the taxable year pursuant to Section 1341 of
2632	2632	12 the Internal Revenue Code;
2633	2633	13 (Q) For taxable year 1999 and thereafter, an
2634	2634	14 amount equal to the amount of any (i) distributions,
2635	2635	15 to the extent includible in gross income for federal
2636	2636	16 income tax purposes, made to the taxpayer because of
2637	2637	17 his or her status as a victim of persecution for racial
2638	2638	18 or religious reasons by Nazi Germany or any other Axis
2639	2639	19 regime or as an heir of the victim and (ii) items of
2640	2640	20 income, to the extent includible in gross income for
2641	2641	21 federal income tax purposes, attributable to, derived
2642	2642	22 from or in any way related to assets stolen from,
2643	2643	23 hidden from, or otherwise lost to a victim of
2644	2644	24 persecution for racial or religious reasons by Nazi
2645	2645	25 Germany or any other Axis regime immediately prior to,
2646	2646	26 during, and immediately after World War II, including,
2647	2647
2648	2648
2649	2649
2650	2650
2651	2651
2652	2652	HB3124 - 73 - LRB104 10028 HLH 20099 b
2653	2653
2654	2654
2655	2655	HB3124- 74 -LRB104 10028 HLH 20099 b HB3124 - 74 - LRB104 10028 HLH 20099 b
2656	2656	HB3124 - 74 - LRB104 10028 HLH 20099 b
2657	2657	1 but not limited to, interest on the proceeds
2658	2658	2 receivable as insurance under policies issued to a
2659	2659	3 victim of persecution for racial or religious reasons
2660	2660	4 by Nazi Germany or any other Axis regime by European
2661	2661	5 insurance companies immediately prior to and during
2662	2662	6 World War II; provided, however, this subtraction from
2663	2663	7 federal adjusted gross income does not apply to assets
2664	2664	8 acquired with such assets or with the proceeds from
2665	2665	9 the sale of such assets; provided, further, this
2666	2666	10 paragraph shall only apply to a taxpayer who was the
2667	2667	11 first recipient of such assets after their recovery
2668	2668	12 and who is a victim of persecution for racial or
2669	2669	13 religious reasons by Nazi Germany or any other Axis
2670	2670	14 regime or as an heir of the victim. The amount of and
2671	2671	15 the eligibility for any public assistance, benefit, or
2672	2672	16 similar entitlement is not affected by the inclusion
2673	2673	17 of items (i) and (ii) of this paragraph in gross income
2674	2674	18 for federal income tax purposes. This paragraph is
2675	2675	19 exempt from the provisions of Section 250;
2676	2676	20 (R) For taxable years 2001 and thereafter, for the
2677	2677	21 taxable year in which the bonus depreciation deduction
2678	2678	22 is taken on the taxpayer's federal income tax return
2679	2679	23 under subsection (k) of Section 168 of the Internal
2680	2680	24 Revenue Code and for each applicable taxable year
2681	2681	25 thereafter, an amount equal to "x", where:
2682	2682	26 (1) "y" equals the amount of the depreciation
2683	2683
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688	HB3124 - 74 - LRB104 10028 HLH 20099 b
2689	2689
2690	2690
2691	2691	HB3124- 75 -LRB104 10028 HLH 20099 b HB3124 - 75 - LRB104 10028 HLH 20099 b
2692	2692	HB3124 - 75 - LRB104 10028 HLH 20099 b
2693	2693	1 deduction taken for the taxable year on the
2694	2694	2 taxpayer's federal income tax return on property
2695	2695	3 for which the bonus depreciation deduction was
2696	2696	4 taken in any year under subsection (k) of Section
2697	2697	5 168 of the Internal Revenue Code, but not
2698	2698	6 including the bonus depreciation deduction;
2699	2699	7 (2) for taxable years ending on or before
2700	2700	8 December 31, 2005, "x" equals "y" multiplied by 30
2701	2701	9 and then divided by 70 (or "y" multiplied by
2702	2702	10 0.429); and
2703	2703	11 (3) for taxable years ending after December
2704	2704	12 31, 2005:
2705	2705	13 (i) for property on which a bonus
2706	2706	14 depreciation deduction of 30% of the adjusted
2707	2707	15 basis was taken, "x" equals "y" multiplied by
2708	2708	16 30 and then divided by 70 (or "y" multiplied
2709	2709	17 by 0.429);
2710	2710	18 (ii) for property on which a bonus
2711	2711	19 depreciation deduction of 50% of the adjusted
2712	2712	20 basis was taken, "x" equals "y" multiplied by
2713	2713	21 1.0;
2714	2714	22 (iii) for property on which a bonus
2715	2715	23 depreciation deduction of 100% of the adjusted
2716	2716	24 basis was taken in a taxable year ending on or
2717	2717	25 after December 31, 2021, "x" equals the
2718	2718	26 depreciation deduction that would be allowed
2719	2719
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724	HB3124 - 75 - LRB104 10028 HLH 20099 b
2725	2725
2726	2726
2727	2727	HB3124- 76 -LRB104 10028 HLH 20099 b HB3124 - 76 - LRB104 10028 HLH 20099 b
2728	2728	HB3124 - 76 - LRB104 10028 HLH 20099 b
2729	2729	1 on that property if the taxpayer had made the
2730	2730	2 election under Section 168(k)(7) of the
2731	2731	3 Internal Revenue Code to not claim bonus
2732	2732	4 depreciation on that property; and
2733	2733	5 (iv) for property on which a bonus
2734	2734	6 depreciation deduction of a percentage other
2735	2735	7 than 30%, 50% or 100% of the adjusted basis
2736	2736	8 was taken in a taxable year ending on or after
2737	2737	9 December 31, 2021, "x" equals "y" multiplied
2738	2738	10 by 100 times the percentage bonus depreciation
2739	2739	11 on the property (that is, 100(bonus%)) and
2740	2740	12 then divided by 100 times 1 minus the
2741	2741	13 percentage bonus depreciation on the property
2742	2742	14 (that is, 100(1-bonus%)).
2743	2743	15 The aggregate amount deducted under this
2744	2744	16 subparagraph in all taxable years for any one piece of
2745	2745	17 property may not exceed the amount of the bonus
2746	2746	18 depreciation deduction taken on that property on the
2747	2747	19 taxpayer's federal income tax return under subsection
2748	2748	20 (k) of Section 168 of the Internal Revenue Code. This
2749	2749	21 subparagraph (R) is exempt from the provisions of
2750	2750	22 Section 250;
2751	2751	23 (S) If the taxpayer sells, transfers, abandons, or
2752	2752	24 otherwise disposes of property for which the taxpayer
2753	2753	25 was required in any taxable year to make an addition
2754	2754	26 modification under subparagraph (G-10), then an amount
2755	2755
2756	2756
2757	2757
2758	2758
2759	2759
2760	2760	HB3124 - 76 - LRB104 10028 HLH 20099 b
2761	2761
2762	2762
2763	2763	HB3124- 77 -LRB104 10028 HLH 20099 b HB3124 - 77 - LRB104 10028 HLH 20099 b
2764	2764	HB3124 - 77 - LRB104 10028 HLH 20099 b
2765	2765	1 equal to that addition modification.
2766	2766	2 If the taxpayer continues to own property through
2767	2767	3 the last day of the last tax year for which a taxpayer
2768	2768	4 may claim a depreciation deduction for federal income
2769	2769	5 tax purposes a subtraction is allowed with respect to
2770	2770	6 that property under subparagraph (R) and for which the
2771	2771	7 taxpayer was required in any taxable year to make an
2772	2772	8 addition modification under subparagraph (G-10), then
2773	2773	9 an amount equal to that addition modification.
2774	2774	10 The taxpayer is allowed to take the deduction
2775	2775	11 under this subparagraph only once with respect to any
2776	2776	12 one piece of property.
2777	2777	13 This subparagraph (S) is exempt from the
2778	2778	14 provisions of Section 250;
2779	2779	15 (T) The amount of (i) any interest income (net of
2780	2780	16 the deductions allocable thereto) taken into account
2781	2781	17 for the taxable year with respect to a transaction
2782	2782	18 with a taxpayer that is required to make an addition
2783	2783	19 modification with respect to such transaction under
2784	2784	20 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2785	2785	21 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2786	2786	22 the amount of such addition modification and (ii) any
2787	2787	23 income from intangible property (net of the deductions
2788	2788	24 allocable thereto) taken into account for the taxable
2789	2789	25 year with respect to a transaction with a taxpayer
2790	2790	26 that is required to make an addition modification with
2791	2791
2792	2792
2793	2793
2794	2794
2795	2795
2796	2796	HB3124 - 77 - LRB104 10028 HLH 20099 b
2797	2797
2798	2798
2799	2799	HB3124- 78 -LRB104 10028 HLH 20099 b HB3124 - 78 - LRB104 10028 HLH 20099 b
2800	2800	HB3124 - 78 - LRB104 10028 HLH 20099 b
2801	2801	1 respect to such transaction under Section
2802	2802	2 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2803	2803	3 203(d)(2)(D-8), but not to exceed the amount of such
2804	2804	4 addition modification. This subparagraph (T) is exempt
2805	2805	5 from the provisions of Section 250;
2806	2806	6 (U) An amount equal to the interest income taken
2807	2807	7 into account for the taxable year (net of the
2808	2808	8 deductions allocable thereto) with respect to
2809	2809	9 transactions with (i) a foreign person who would be a
2810	2810	10 member of the taxpayer's unitary business group but
2811	2811	11 for the fact the foreign person's business activity
2812	2812	12 outside the United States is 80% or more of that
2813	2813	13 person's total business activity and (ii) for taxable
2814	2814	14 years ending on or after December 31, 2008, to a person
2815	2815	15 who would be a member of the same unitary business
2816	2816	16 group but for the fact that the person is prohibited
2817	2817	17 under Section 1501(a)(27) from being included in the
2818	2818	18 unitary business group because he or she is ordinarily
2819	2819	19 required to apportion business income under different
2820	2820	20 subsections of Section 304, but not to exceed the
2821	2821	21 addition modification required to be made for the same
2822	2822	22 taxable year under Section 203(c)(2)(G-12) for
2823	2823	23 interest paid, accrued, or incurred, directly or
2824	2824	24 indirectly, to the same person. This subparagraph (U)
2825	2825	25 is exempt from the provisions of Section 250;
2826	2826	26 (V) An amount equal to the income from intangible
2827	2827
2828	2828
2829	2829
2830	2830
2831	2831
2832	2832	HB3124 - 78 - LRB104 10028 HLH 20099 b
2833	2833
2834	2834
2835	2835	HB3124- 79 -LRB104 10028 HLH 20099 b HB3124 - 79 - LRB104 10028 HLH 20099 b
2836	2836	HB3124 - 79 - LRB104 10028 HLH 20099 b
2837	2837	1 property taken into account for the taxable year (net
2838	2838	2 of the deductions allocable thereto) with respect to
2839	2839	3 transactions with (i) a foreign person who would be a
2840	2840	4 member of the taxpayer's unitary business group but
2841	2841	5 for the fact that the foreign person's business
2842	2842	6 activity outside the United States is 80% or more of
2843	2843	7 that person's total business activity and (ii) for
2844	2844	8 taxable years ending on or after December 31, 2008, to
2845	2845	9 a person who would be a member of the same unitary
2846	2846	10 business group but for the fact that the person is
2847	2847	11 prohibited under Section 1501(a)(27) from being
2848	2848	12 included in the unitary business group because he or
2849	2849	13 she is ordinarily required to apportion business
2850	2850	14 income under different subsections of Section 304, but
2851	2851	15 not to exceed the addition modification required to be
2852	2852	16 made for the same taxable year under Section
2853	2853	17 203(c)(2)(G-13) for intangible expenses and costs
2854	2854	18 paid, accrued, or incurred, directly or indirectly, to
2855	2855	19 the same foreign person. This subparagraph (V) is
2856	2856	20 exempt from the provisions of Section 250;
2857	2857	21 (W) in the case of an estate, an amount equal to
2858	2858	22 all amounts included in such total pursuant to the
2859	2859	23 provisions of Section 111 of the Internal Revenue Code
2860	2860	24 as a recovery of items previously deducted by the
2861	2861	25 decedent from adjusted gross income in the computation
2862	2862	26 of taxable income. This subparagraph (W) is exempt
2863	2863
2864	2864
2865	2865
2866	2866
2867	2867
2868	2868	HB3124 - 79 - LRB104 10028 HLH 20099 b
2869	2869
2870	2870
2871	2871	HB3124- 80 -LRB104 10028 HLH 20099 b HB3124 - 80 - LRB104 10028 HLH 20099 b
2872	2872	HB3124 - 80 - LRB104 10028 HLH 20099 b
2873	2873	1 from Section 250;
2874	2874	2 (X) an amount equal to the refund included in such
2875	2875	3 total of any tax deducted for federal income tax
2876	2876	4 purposes, to the extent that deduction was added back
2877	2877	5 under subparagraph (F). This subparagraph (X) is
2878	2878	6 exempt from the provisions of Section 250;
2879	2879	7 (Y) For taxable years ending on or after December
2880	2880	8 31, 2011, in the case of a taxpayer who was required to
2881	2881	9 add back any insurance premiums under Section
2882	2882	10 203(c)(2)(G-14), such taxpayer may elect to subtract
2883	2883	11 that part of a reimbursement received from the
2884	2884	12 insurance company equal to the amount of the expense
2885	2885	13 or loss (including expenses incurred by the insurance
2886	2886	14 company) that would have been taken into account as a
2887	2887	15 deduction for federal income tax purposes if the
2888	2888	16 expense or loss had been uninsured. If a taxpayer
2889	2889	17 makes the election provided for by this subparagraph
2890	2890	18 (Y), the insurer to which the premiums were paid must
2891	2891	19 add back to income the amount subtracted by the
2892	2892	20 taxpayer pursuant to this subparagraph (Y). This
2893	2893	21 subparagraph (Y) is exempt from the provisions of
2894	2894	22 Section 250;
2895	2895	23 (Z) For taxable years beginning after December 31,
2896	2896	24 2018 and before January 1, 2026, the amount of excess
2897	2897	25 business loss of the taxpayer disallowed as a
2898	2898	26 deduction by Section 461(l)(1)(B) of the Internal
2899	2899
2900	2900
2901	2901
2902	2902
2903	2903
2904	2904	HB3124 - 80 - LRB104 10028 HLH 20099 b
2905	2905
2906	2906
2907	2907	HB3124- 81 -LRB104 10028 HLH 20099 b HB3124 - 81 - LRB104 10028 HLH 20099 b
2908	2908	HB3124 - 81 - LRB104 10028 HLH 20099 b
2909	2909	1 Revenue Code; and
2910	2910	2 (AA) For taxable years beginning on or after
2911	2911	3 January 1, 2023, for any cannabis establishment
2912	2912	4 operating in this State and licensed under the
2913	2913	5 Cannabis Regulation and Tax Act or any cannabis
2914	2914	6 cultivation center or medical cannabis dispensing
2915	2915	7 organization operating in this State and licensed
2916	2916	8 under the Compassionate Use of Medical Cannabis
2917	2917	9 Program Act, an amount equal to the deductions that
2918	2918	10 were disallowed under Section 280E of the Internal
2919	2919	11 Revenue Code for the taxable year and that would not be
2920	2920	12 added back under this subsection. The provisions of
2921	2921	13 this subparagraph (AA) are exempt from the provisions
2922	2922	14 of Section 250.
2923	2923	15 (3) Limitation. The amount of any modification
2924	2924	16 otherwise required under this subsection shall, under
2925	2925	17 regulations prescribed by the Department, be adjusted by
2926	2926	18 any amounts included therein which were properly paid,
2927	2927	19 credited, or required to be distributed, or permanently
2928	2928	20 set aside for charitable purposes pursuant to Internal
2929	2929	21 Revenue Code Section 642(c) during the taxable year.
2930	2930	22 (d) Partnerships.
2931	2931	23 (1) In general. In the case of a partnership, base
2932	2932	24 income means an amount equal to the taxpayer's taxable
2933	2933	25 income for the taxable year as modified by paragraph (2).
2934	2934
2935	2935
2936	2936
2937	2937
2938	2938
2939	2939	HB3124 - 81 - LRB104 10028 HLH 20099 b
2940	2940
2941	2941
2942	2942	HB3124- 82 -LRB104 10028 HLH 20099 b HB3124 - 82 - LRB104 10028 HLH 20099 b
2943	2943	HB3124 - 82 - LRB104 10028 HLH 20099 b
2944	2944	1 (2) Modifications. The taxable income referred to in
2945	2945	2 paragraph (1) shall be modified by adding thereto the sum
2946	2946	3 of the following amounts:
2947	2947	4 (A) An amount equal to all amounts paid or accrued
2948	2948	5 to the taxpayer as interest or dividends during the
2949	2949	6 taxable year to the extent excluded from gross income
2950	2950	7 in the computation of taxable income;
2951	2951	8 (B) An amount equal to the amount of tax imposed by
2952	2952	9 this Act to the extent deducted from gross income for
2953	2953	10 the taxable year;
2954	2954	11 (C) The amount of deductions allowed to the
2955	2955	12 partnership pursuant to Section 707 (c) of the
2956	2956	13 Internal Revenue Code in calculating its taxable
2957	2957	14 income;
2958	2958	15 (D) An amount equal to the amount of the capital
2959	2959	16 gain deduction allowable under the Internal Revenue
2960	2960	17 Code, to the extent deducted from gross income in the
2961	2961	18 computation of taxable income;
2962	2962	19 (D-5) For taxable years 2001 and thereafter, an
2963	2963	20 amount equal to the bonus depreciation deduction taken
2964	2964	21 on the taxpayer's federal income tax return for the
2965	2965	22 taxable year under subsection (k) of Section 168 of
2966	2966	23 the Internal Revenue Code;
2967	2967	24 (D-6) If the taxpayer sells, transfers, abandons,
2968	2968	25 or otherwise disposes of property for which the
2969	2969	26 taxpayer was required in any taxable year to make an
2970	2970
2971	2971
2972	2972
2973	2973
2974	2974
2975	2975	HB3124 - 82 - LRB104 10028 HLH 20099 b
2976	2976
2977	2977
2978	2978	HB3124- 83 -LRB104 10028 HLH 20099 b HB3124 - 83 - LRB104 10028 HLH 20099 b
2979	2979	HB3124 - 83 - LRB104 10028 HLH 20099 b
2980	2980	1 addition modification under subparagraph (D-5), then
2981	2981	2 an amount equal to the aggregate amount of the
2982	2982	3 deductions taken in all taxable years under
2983	2983	4 subparagraph (O) with respect to that property.
2984	2984	5 If the taxpayer continues to own property through
2985	2985	6 the last day of the last tax year for which a taxpayer
2986	2986	7 may claim a depreciation deduction for federal income
2987	2987	8 tax purposes a subtraction is allowed with respect to
2988	2988	9 that property under subparagraph (O) and for which the
2989	2989	10 taxpayer was allowed in any taxable year to make a
2990	2990	11 subtraction modification under subparagraph (O), then
2991	2991	12 an amount equal to that subtraction modification.
2992	2992	13 The taxpayer is required to make the addition
2993	2993	14 modification under this subparagraph only once with
2994	2994	15 respect to any one piece of property;
2995	2995	16 (D-7) An amount equal to the amount otherwise
2996	2996	17 allowed as a deduction in computing base income for
2997	2997	18 interest paid, accrued, or incurred, directly or
2998	2998	19 indirectly, (i) for taxable years ending on or after
2999	2999	20 December 31, 2004, to a foreign person who would be a
3000	3000	21 member of the same unitary business group but for the
3001	3001	22 fact the foreign person's business activity outside
3002	3002	23 the United States is 80% or more of the foreign
3003	3003	24 person's total business activity and (ii) for taxable
3004	3004	25 years ending on or after December 31, 2008, to a person
3005	3005	26 who would be a member of the same unitary business
3006	3006
3007	3007
3008	3008
3009	3009
3010	3010
3011	3011	HB3124 - 83 - LRB104 10028 HLH 20099 b
3012	3012
3013	3013
3014	3014	HB3124- 84 -LRB104 10028 HLH 20099 b HB3124 - 84 - LRB104 10028 HLH 20099 b
3015	3015	HB3124 - 84 - LRB104 10028 HLH 20099 b
3016	3016	1 group but for the fact that the person is prohibited
3017	3017	2 under Section 1501(a)(27) from being included in the
3018	3018	3 unitary business group because he or she is ordinarily
3019	3019	4 required to apportion business income under different
3020	3020	5 subsections of Section 304. The addition modification
3021	3021	6 required by this subparagraph shall be reduced to the
3022	3022	7 extent that dividends were included in base income of
3023	3023	8 the unitary group for the same taxable year and
3024	3024	9 received by the taxpayer or by a member of the
3025	3025	10 taxpayer's unitary business group (including amounts
3026	3026	11 included in gross income pursuant to Sections 951
3027	3027	12 through 964 of the Internal Revenue Code and amounts
3028	3028	13 included in gross income under Section 78 of the
3029	3029	14 Internal Revenue Code) with respect to the stock of
3030	3030	15 the same person to whom the interest was paid,
3031	3031	16 accrued, or incurred.
3032	3032	17 This paragraph shall not apply to the following:
3033	3033	18 (i) an item of interest paid, accrued, or
3034	3034	19 incurred, directly or indirectly, to a person who
3035	3035	20 is subject in a foreign country or state, other
3036	3036	21 than a state which requires mandatory unitary
3037	3037	22 reporting, to a tax on or measured by net income
3038	3038	23 with respect to such interest; or
3039	3039	24 (ii) an item of interest paid, accrued, or
3040	3040	25 incurred, directly or indirectly, to a person if
3041	3041	26 the taxpayer can establish, based on a
3042	3042
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047	HB3124 - 84 - LRB104 10028 HLH 20099 b
3048	3048
3049	3049
3050	3050	HB3124- 85 -LRB104 10028 HLH 20099 b HB3124 - 85 - LRB104 10028 HLH 20099 b
3051	3051	HB3124 - 85 - LRB104 10028 HLH 20099 b
3052	3052	1 preponderance of the evidence, both of the
3053	3053	2 following:
3054	3054	3 (a) the person, during the same taxable
3055	3055	4 year, paid, accrued, or incurred, the interest
3056	3056	5 to a person that is not a related member, and
3057	3057	6 (b) the transaction giving rise to the
3058	3058	7 interest expense between the taxpayer and the
3059	3059	8 person did not have as a principal purpose the
3060	3060	9 avoidance of Illinois income tax, and is paid
3061	3061	10 pursuant to a contract or agreement that
3062	3062	11 reflects an arm's-length interest rate and
3063	3063	12 terms; or
3064	3064	13 (iii) the taxpayer can establish, based on
3065	3065	14 clear and convincing evidence, that the interest
3066	3066	15 paid, accrued, or incurred relates to a contract
3067	3067	16 or agreement entered into at arm's-length rates
3068	3068	17 and terms and the principal purpose for the
3069	3069	18 payment is not federal or Illinois tax avoidance;
3070	3070	19 or
3071	3071	20 (iv) an item of interest paid, accrued, or
3072	3072	21 incurred, directly or indirectly, to a person if
3073	3073	22 the taxpayer establishes by clear and convincing
3074	3074	23 evidence that the adjustments are unreasonable; or
3075	3075	24 if the taxpayer and the Director agree in writing
3076	3076	25 to the application or use of an alternative method
3077	3077	26 of apportionment under Section 304(f).
3078	3078
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083	HB3124 - 85 - LRB104 10028 HLH 20099 b
3084	3084
3085	3085
3086	3086	HB3124- 86 -LRB104 10028 HLH 20099 b HB3124 - 86 - LRB104 10028 HLH 20099 b
3087	3087	HB3124 - 86 - LRB104 10028 HLH 20099 b
3088	3088	1 Nothing in this subsection shall preclude the
3089	3089	2 Director from making any other adjustment
3090	3090	3 otherwise allowed under Section 404 of this Act
3091	3091	4 for any tax year beginning after the effective
3092	3092	5 date of this amendment provided such adjustment is
3093	3093	6 made pursuant to regulation adopted by the
3094	3094	7 Department and such regulations provide methods
3095	3095	8 and standards by which the Department will utilize
3096	3096	9 its authority under Section 404 of this Act; and
3097	3097	10 (D-8) An amount equal to the amount of intangible
3098	3098	11 expenses and costs otherwise allowed as a deduction in
3099	3099	12 computing base income, and that were paid, accrued, or
3100	3100	13 incurred, directly or indirectly, (i) for taxable
3101	3101	14 years ending on or after December 31, 2004, to a
3102	3102	15 foreign person who would be a member of the same
3103	3103	16 unitary business group but for the fact that the
3104	3104	17 foreign person's business activity outside the United
3105	3105	18 States is 80% or more of that person's total business
3106	3106	19 activity and (ii) for taxable years ending on or after
3107	3107	20 December 31, 2008, to a person who would be a member of
3108	3108	21 the same unitary business group but for the fact that
3109	3109	22 the person is prohibited under Section 1501(a)(27)
3110	3110	23 from being included in the unitary business group
3111	3111	24 because he or she is ordinarily required to apportion
3112	3112	25 business income under different subsections of Section
3113	3113	26 304. The addition modification required by this
3114	3114
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119	HB3124 - 86 - LRB104 10028 HLH 20099 b
3120	3120
3121	3121
3122	3122	HB3124- 87 -LRB104 10028 HLH 20099 b HB3124 - 87 - LRB104 10028 HLH 20099 b
3123	3123	HB3124 - 87 - LRB104 10028 HLH 20099 b
3124	3124	1 subparagraph shall be reduced to the extent that
3125	3125	2 dividends were included in base income of the unitary
3126	3126	3 group for the same taxable year and received by the
3127	3127	4 taxpayer or by a member of the taxpayer's unitary
3128	3128	5 business group (including amounts included in gross
3129	3129	6 income pursuant to Sections 951 through 964 of the
3130	3130	7 Internal Revenue Code and amounts included in gross
3131	3131	8 income under Section 78 of the Internal Revenue Code)
3132	3132	9 with respect to the stock of the same person to whom
3133	3133	10 the intangible expenses and costs were directly or
3134	3134	11 indirectly paid, incurred or accrued. The preceding
3135	3135	12 sentence shall not apply to the extent that the same
3136	3136	13 dividends caused a reduction to the addition
3137	3137	14 modification required under Section 203(d)(2)(D-7) of
3138	3138	15 this Act. As used in this subparagraph, the term
3139	3139	16 "intangible expenses and costs" includes (1) expenses,
3140	3140	17 losses, and costs for, or related to, the direct or
3141	3141	18 indirect acquisition, use, maintenance or management,
3142	3142	19 ownership, sale, exchange, or any other disposition of
3143	3143	20 intangible property; (2) losses incurred, directly or
3144	3144	21 indirectly, from factoring transactions or discounting
3145	3145	22 transactions; (3) royalty, patent, technical, and
3146	3146	23 copyright fees; (4) licensing fees; and (5) other
3147	3147	24 similar expenses and costs. For purposes of this
3148	3148	25 subparagraph, "intangible property" includes patents,
3149	3149	26 patent applications, trade names, trademarks, service
3150	3150
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155	HB3124 - 87 - LRB104 10028 HLH 20099 b
3156	3156
3157	3157
3158	3158	HB3124- 88 -LRB104 10028 HLH 20099 b HB3124 - 88 - LRB104 10028 HLH 20099 b
3159	3159	HB3124 - 88 - LRB104 10028 HLH 20099 b
3160	3160	1 marks, copyrights, mask works, trade secrets, and
3161	3161	2 similar types of intangible assets;
3162	3162	3 This paragraph shall not apply to the following:
3163	3163	4 (i) any item of intangible expenses or costs
3164	3164	5 paid, accrued, or incurred, directly or
3165	3165	6 indirectly, from a transaction with a person who
3166	3166	7 is subject in a foreign country or state, other
3167	3167	8 than a state which requires mandatory unitary
3168	3168	9 reporting, to a tax on or measured by net income
3169	3169	10 with respect to such item; or
3170	3170	11 (ii) any item of intangible expense or cost
3171	3171	12 paid, accrued, or incurred, directly or
3172	3172	13 indirectly, if the taxpayer can establish, based
3173	3173	14 on a preponderance of the evidence, both of the
3174	3174	15 following:
3175	3175	16 (a) the person during the same taxable
3176	3176	17 year paid, accrued, or incurred, the
3177	3177	18 intangible expense or cost to a person that is
3178	3178	19 not a related member, and
3179	3179	20 (b) the transaction giving rise to the
3180	3180	21 intangible expense or cost between the
3181	3181	22 taxpayer and the person did not have as a
3182	3182	23 principal purpose the avoidance of Illinois
3183	3183	24 income tax, and is paid pursuant to a contract
3184	3184	25 or agreement that reflects arm's-length terms;
3185	3185	26 or
3186	3186
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191	HB3124 - 88 - LRB104 10028 HLH 20099 b
3192	3192
3193	3193
3194	3194	HB3124- 89 -LRB104 10028 HLH 20099 b HB3124 - 89 - LRB104 10028 HLH 20099 b
3195	3195	HB3124 - 89 - LRB104 10028 HLH 20099 b
3196	3196	1 (iii) any item of intangible expense or cost
3197	3197	2 paid, accrued, or incurred, directly or
3198	3198	3 indirectly, from a transaction with a person if
3199	3199	4 the taxpayer establishes by clear and convincing
3200	3200	5 evidence, that the adjustments are unreasonable;
3201	3201	6 or if the taxpayer and the Director agree in
3202	3202	7 writing to the application or use of an
3203	3203	8 alternative method of apportionment under Section
3204	3204	9 304(f);
3205	3205	10 Nothing in this subsection shall preclude the
3206	3206	11 Director from making any other adjustment
3207	3207	12 otherwise allowed under Section 404 of this Act
3208	3208	13 for any tax year beginning after the effective
3209	3209	14 date of this amendment provided such adjustment is
3210	3210	15 made pursuant to regulation adopted by the
3211	3211	16 Department and such regulations provide methods
3212	3212	17 and standards by which the Department will utilize
3213	3213	18 its authority under Section 404 of this Act;
3214	3214	19 (D-9) For taxable years ending on or after
3215	3215	20 December 31, 2008, an amount equal to the amount of
3216	3216	21 insurance premium expenses and costs otherwise allowed
3217	3217	22 as a deduction in computing base income, and that were
3218	3218	23 paid, accrued, or incurred, directly or indirectly, to
3219	3219	24 a person who would be a member of the same unitary
3220	3220	25 business group but for the fact that the person is
3221	3221	26 prohibited under Section 1501(a)(27) from being
3222	3222
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227	HB3124 - 89 - LRB104 10028 HLH 20099 b
3228	3228
3229	3229
3230	3230	HB3124- 90 -LRB104 10028 HLH 20099 b HB3124 - 90 - LRB104 10028 HLH 20099 b
3231	3231	HB3124 - 90 - LRB104 10028 HLH 20099 b
3232	3232	1 included in the unitary business group because he or
3233	3233	2 she is ordinarily required to apportion business
3234	3234	3 income under different subsections of Section 304. The
3235	3235	4 addition modification required by this subparagraph
3236	3236	5 shall be reduced to the extent that dividends were
3237	3237	6 included in base income of the unitary group for the
3238	3238	7 same taxable year and received by the taxpayer or by a
3239	3239	8 member of the taxpayer's unitary business group
3240	3240	9 (including amounts included in gross income under
3241	3241	10 Sections 951 through 964 of the Internal Revenue Code
3242	3242	11 and amounts included in gross income under Section 78
3243	3243	12 of the Internal Revenue Code) with respect to the
3244	3244	13 stock of the same person to whom the premiums and costs
3245	3245	14 were directly or indirectly paid, incurred, or
3246	3246	15 accrued. The preceding sentence does not apply to the
3247	3247	16 extent that the same dividends caused a reduction to
3248	3248	17 the addition modification required under Section
3249	3249	18 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
3250	3250	19 (D-10) An amount equal to the credit allowable to
3251	3251	20 the taxpayer under Section 218(a) of this Act,
3252	3252	21 determined without regard to Section 218(c) of this
3253	3253	22 Act;
3254	3254	23 (D-11) For taxable years ending on or after
3255	3255	24 December 31, 2017, an amount equal to the deduction
3256	3256	25 allowed under Section 199 of the Internal Revenue Code
3257	3257	26 for the taxable year;
3258	3258
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263	HB3124 - 90 - LRB104 10028 HLH 20099 b
3264	3264
3265	3265
3266	3266	HB3124- 91 -LRB104 10028 HLH 20099 b HB3124 - 91 - LRB104 10028 HLH 20099 b
3267	3267	HB3124 - 91 - LRB104 10028 HLH 20099 b
3268	3268	1 (D-12) the amount that is claimed as a federal
3269	3269	2 deduction when computing the taxpayer's federal
3270	3270	3 taxable income for the taxable year and that is
3271	3271	4 attributable to an endowment gift for which the
3272	3272	5 taxpayer receives a credit under the Illinois Gives
3273	3273	6 Tax Credit Act;
3274	3274	7 and by deducting from the total so obtained the following
3275	3275	8 amounts:
3276	3276	9 (E) The valuation limitation amount;
3277	3277	10 (F) An amount equal to the amount of any tax
3278	3278	11 imposed by this Act which was refunded to the taxpayer
3279	3279	12 and included in such total for the taxable year;
3280	3280	13 (G) An amount equal to all amounts included in
3281	3281	14 taxable income as modified by subparagraphs (A), (B),
3282	3282	15 (C) and (D) which are exempt from taxation by this
3283	3283	16 State either by reason of its statutes or Constitution
3284	3284	17 or by reason of the Constitution, treaties or statutes
3285	3285	18 of the United States; provided that, in the case of any
3286	3286	19 statute of this State that exempts income derived from
3287	3287	20 bonds or other obligations from the tax imposed under
3288	3288	21 this Act, the amount exempted shall be the interest
3289	3289	22 net of bond premium amortization;
3290	3290	23 (H) Any income of the partnership which
3291	3291	24 constitutes personal service income as defined in
3292	3292	25 Section 1348(b)(1) of the Internal Revenue Code (as in
3293	3293	26 effect December 31, 1981) or a reasonable allowance
3294	3294
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299	HB3124 - 91 - LRB104 10028 HLH 20099 b
3300	3300
3301	3301
3302	3302	HB3124- 92 -LRB104 10028 HLH 20099 b HB3124 - 92 - LRB104 10028 HLH 20099 b
3303	3303	HB3124 - 92 - LRB104 10028 HLH 20099 b
3304	3304	1 for compensation paid or accrued for services rendered
3305	3305	2 by partners to the partnership, whichever is greater;
3306	3306	3 this subparagraph (H) is exempt from the provisions of
3307	3307	4 Section 250;
3308	3308	5 (I) An amount equal to all amounts of income
3309	3309	6 distributable to an entity subject to the Personal
3310	3310	7 Property Tax Replacement Income Tax imposed by
3311	3311	8 subsections (c) and (d) of Section 201 of this Act
3312	3312	9 including amounts distributable to organizations
3313	3313	10 exempt from federal income tax by reason of Section
3314	3314	11 501(a) of the Internal Revenue Code; this subparagraph
3315	3315	12 (I) is exempt from the provisions of Section 250;
3316	3316	13 (J) With the exception of any amounts subtracted
3317	3317	14 under subparagraph (G), an amount equal to the sum of
3318	3318	15 all amounts disallowed as deductions by (i) Sections
3319	3319	16 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3320	3320	17 and all amounts of expenses allocable to interest and
3321	3321	18 disallowed as deductions by Section 265(a)(1) of the
3322	3322	19 Internal Revenue Code; and (ii) for taxable years
3323	3323	20 ending on or after August 13, 1999, Sections
3324	3324	21 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3325	3325	22 Internal Revenue Code, plus, (iii) for taxable years
3326	3326	23 ending on or after December 31, 2011, Section
3327	3327	24 45G(e)(3) of the Internal Revenue Code and, for
3328	3328	25 taxable years ending on or after December 31, 2008,
3329	3329	26 any amount included in gross income under Section 87
3330	3330
3331	3331
3332	3332
3333	3333
3334	3334
3335	3335	HB3124 - 92 - LRB104 10028 HLH 20099 b
3336	3336
3337	3337
3338	3338	HB3124- 93 -LRB104 10028 HLH 20099 b HB3124 - 93 - LRB104 10028 HLH 20099 b
3339	3339	HB3124 - 93 - LRB104 10028 HLH 20099 b
3340	3340	1 of the Internal Revenue Code; the provisions of this
3341	3341	2 subparagraph are exempt from the provisions of Section
3342	3342	3 250;
3343	3343	4 (K) An amount equal to those dividends included in
3344	3344	5 such total which were paid by a corporation which
3345	3345	6 conducts business operations in a River Edge
3346	3346	7 Redevelopment Zone or zones created under the River
3347	3347	8 Edge Redevelopment Zone Act and conducts substantially
3348	3348	9 all of its operations from a River Edge Redevelopment
3349	3349	10 Zone or zones. This subparagraph (K) is exempt from
3350	3350	11 the provisions of Section 250;
3351	3351	12 (L) An amount equal to any contribution made to a
3352	3352	13 job training project established pursuant to the Real
3353	3353	14 Property Tax Increment Allocation Redevelopment Act;
3354	3354	15 (M) An amount equal to those dividends included in
3355	3355	16 such total that were paid by a corporation that
3356	3356	17 conducts business operations in a federally designated
3357	3357	18 Foreign Trade Zone or Sub-Zone and that is designated
3358	3358	19 a High Impact Business located in Illinois; provided
3359	3359	20 that dividends eligible for the deduction provided in
3360	3360	21 subparagraph (K) of paragraph (2) of this subsection
3361	3361	22 shall not be eligible for the deduction provided under
3362	3362	23 this subparagraph (M);
3363	3363	24 (N) An amount equal to the amount of the deduction
3364	3364	25 used to compute the federal income tax credit for
3365	3365	26 restoration of substantial amounts held under claim of
3366	3366
3367	3367
3368	3368
3369	3369
3370	3370
3371	3371	HB3124 - 93 - LRB104 10028 HLH 20099 b
3372	3372
3373	3373
3374	3374	HB3124- 94 -LRB104 10028 HLH 20099 b HB3124 - 94 - LRB104 10028 HLH 20099 b
3375	3375	HB3124 - 94 - LRB104 10028 HLH 20099 b
3376	3376	1 right for the taxable year pursuant to Section 1341 of
3377	3377	2 the Internal Revenue Code;
3378	3378	3 (O) For taxable years 2001 and thereafter, for the
3379	3379	4 taxable year in which the bonus depreciation deduction
3380	3380	5 is taken on the taxpayer's federal income tax return
3381	3381	6 under subsection (k) of Section 168 of the Internal
3382	3382	7 Revenue Code and for each applicable taxable year
3383	3383	8 thereafter, an amount equal to "x", where:
3384	3384	9 (1) "y" equals the amount of the depreciation
3385	3385	10 deduction taken for the taxable year on the
3386	3386	11 taxpayer's federal income tax return on property
3387	3387	12 for which the bonus depreciation deduction was
3388	3388	13 taken in any year under subsection (k) of Section
3389	3389	14 168 of the Internal Revenue Code, but not
3390	3390	15 including the bonus depreciation deduction;
3391	3391	16 (2) for taxable years ending on or before
3392	3392	17 December 31, 2005, "x" equals "y" multiplied by 30
3393	3393	18 and then divided by 70 (or "y" multiplied by
3394	3394	19 0.429); and
3395	3395	20 (3) for taxable years ending after December
3396	3396	21 31, 2005:
3397	3397	22 (i) for property on which a bonus
3398	3398	23 depreciation deduction of 30% of the adjusted
3399	3399	24 basis was taken, "x" equals "y" multiplied by
3400	3400	25 30 and then divided by 70 (or "y" multiplied
3401	3401	26 by 0.429);
3402	3402
3403	3403
3404	3404
3405	3405
3406	3406
3407	3407	HB3124 - 94 - LRB104 10028 HLH 20099 b
3408	3408
3409	3409
3410	3410	HB3124- 95 -LRB104 10028 HLH 20099 b HB3124 - 95 - LRB104 10028 HLH 20099 b
3411	3411	HB3124 - 95 - LRB104 10028 HLH 20099 b
3412	3412	1 (ii) for property on which a bonus
3413	3413	2 depreciation deduction of 50% of the adjusted
3414	3414	3 basis was taken, "x" equals "y" multiplied by
3415	3415	4 1.0;
3416	3416	5 (iii) for property on which a bonus
3417	3417	6 depreciation deduction of 100% of the adjusted
3418	3418	7 basis was taken in a taxable year ending on or
3419	3419	8 after December 31, 2021, "x" equals the
3420	3420	9 depreciation deduction that would be allowed
3421	3421	10 on that property if the taxpayer had made the
3422	3422	11 election under Section 168(k)(7) of the
3423	3423	12 Internal Revenue Code to not claim bonus
3424	3424	13 depreciation on that property; and
3425	3425	14 (iv) for property on which a bonus
3426	3426	15 depreciation deduction of a percentage other
3427	3427	16 than 30%, 50% or 100% of the adjusted basis
3428	3428	17 was taken in a taxable year ending on or after
3429	3429	18 December 31, 2021, "x" equals "y" multiplied
3430	3430	19 by 100 times the percentage bonus depreciation
3431	3431	20 on the property (that is, 100(bonus%)) and
3432	3432	21 then divided by 100 times 1 minus the
3433	3433	22 percentage bonus depreciation on the property
3434	3434	23 (that is, 100(1-bonus%)).
3435	3435	24 The aggregate amount deducted under this
3436	3436	25 subparagraph in all taxable years for any one piece of
3437	3437	26 property may not exceed the amount of the bonus
3438	3438
3439	3439
3440	3440
3441	3441
3442	3442
3443	3443	HB3124 - 95 - LRB104 10028 HLH 20099 b
3444	3444
3445	3445
3446	3446	HB3124- 96 -LRB104 10028 HLH 20099 b HB3124 - 96 - LRB104 10028 HLH 20099 b
3447	3447	HB3124 - 96 - LRB104 10028 HLH 20099 b
3448	3448	1 depreciation deduction taken on that property on the
3449	3449	2 taxpayer's federal income tax return under subsection
3450	3450	3 (k) of Section 168 of the Internal Revenue Code. This
3451	3451	4 subparagraph (O) is exempt from the provisions of
3452	3452	5 Section 250;
3453	3453	6 (P) If the taxpayer sells, transfers, abandons, or
3454	3454	7 otherwise disposes of property for which the taxpayer
3455	3455	8 was required in any taxable year to make an addition
3456	3456	9 modification under subparagraph (D-5), then an amount
3457	3457	10 equal to that addition modification.
3458	3458	11 If the taxpayer continues to own property through
3459	3459	12 the last day of the last tax year for which a taxpayer
3460	3460	13 may claim a depreciation deduction for federal income
3461	3461	14 tax purposes a subtraction is allowed with respect to
3462	3462	15 that property under subparagraph (O) and for which the
3463	3463	16 taxpayer was required in any taxable year to make an
3464	3464	17 addition modification under subparagraph (D-5), then
3465	3465	18 an amount equal to that addition modification.
3466	3466	19 The taxpayer is allowed to take the deduction
3467	3467	20 under this subparagraph only once with respect to any
3468	3468	21 one piece of property.
3469	3469	22 This subparagraph (P) is exempt from the
3470	3470	23 provisions of Section 250;
3471	3471	24 (Q) The amount of (i) any interest income (net of
3472	3472	25 the deductions allocable thereto) taken into account
3473	3473	26 for the taxable year with respect to a transaction
3474	3474
3475	3475
3476	3476
3477	3477
3478	3478
3479	3479	HB3124 - 96 - LRB104 10028 HLH 20099 b
3480	3480
3481	3481
3482	3482	HB3124- 97 -LRB104 10028 HLH 20099 b HB3124 - 97 - LRB104 10028 HLH 20099 b
3483	3483	HB3124 - 97 - LRB104 10028 HLH 20099 b
3484	3484	1 with a taxpayer that is required to make an addition
3485	3485	2 modification with respect to such transaction under
3486	3486	3 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3487	3487	4 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3488	3488	5 the amount of such addition modification and (ii) any
3489	3489	6 income from intangible property (net of the deductions
3490	3490	7 allocable thereto) taken into account for the taxable
3491	3491	8 year with respect to a transaction with a taxpayer
3492	3492	9 that is required to make an addition modification with
3493	3493	10 respect to such transaction under Section
3494	3494	11 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3495	3495	12 203(d)(2)(D-8), but not to exceed the amount of such
3496	3496	13 addition modification. This subparagraph (Q) is exempt
3497	3497	14 from Section 250;
3498	3498	15 (R) An amount equal to the interest income taken
3499	3499	16 into account for the taxable year (net of the
3500	3500	17 deductions allocable thereto) with respect to
3501	3501	18 transactions with (i) a foreign person who would be a
3502	3502	19 member of the taxpayer's unitary business group but
3503	3503	20 for the fact that the foreign person's business
3504	3504	21 activity outside the United States is 80% or more of
3505	3505	22 that person's total business activity and (ii) for
3506	3506	23 taxable years ending on or after December 31, 2008, to
3507	3507	24 a person who would be a member of the same unitary
3508	3508	25 business group but for the fact that the person is
3509	3509	26 prohibited under Section 1501(a)(27) from being
3510	3510
3511	3511
3512	3512
3513	3513
3514	3514
3515	3515	HB3124 - 97 - LRB104 10028 HLH 20099 b
3516	3516
3517	3517
3518	3518	HB3124- 98 -LRB104 10028 HLH 20099 b HB3124 - 98 - LRB104 10028 HLH 20099 b
3519	3519	HB3124 - 98 - LRB104 10028 HLH 20099 b
3520	3520	1 included in the unitary business group because he or
3521	3521	2 she is ordinarily required to apportion business
3522	3522	3 income under different subsections of Section 304, but
3523	3523	4 not to exceed the addition modification required to be
3524	3524	5 made for the same taxable year under Section
3525	3525	6 203(d)(2)(D-7) for interest paid, accrued, or
3526	3526	7 incurred, directly or indirectly, to the same person.
3527	3527	8 This subparagraph (R) is exempt from Section 250;
3528	3528	9 (S) An amount equal to the income from intangible
3529	3529	10 property taken into account for the taxable year (net
3530	3530	11 of the deductions allocable thereto) with respect to
3531	3531	12 transactions with (i) a foreign person who would be a
3532	3532	13 member of the taxpayer's unitary business group but
3533	3533	14 for the fact that the foreign person's business
3534	3534	15 activity outside the United States is 80% or more of
3535	3535	16 that person's total business activity and (ii) for
3536	3536	17 taxable years ending on or after December 31, 2008, to
3537	3537	18 a person who would be a member of the same unitary
3538	3538	19 business group but for the fact that the person is
3539	3539	20 prohibited under Section 1501(a)(27) from being
3540	3540	21 included in the unitary business group because he or
3541	3541	22 she is ordinarily required to apportion business
3542	3542	23 income under different subsections of Section 304, but
3543	3543	24 not to exceed the addition modification required to be
3544	3544	25 made for the same taxable year under Section
3545	3545	26 203(d)(2)(D-8) for intangible expenses and costs paid,
3546	3546
3547	3547
3548	3548
3549	3549
3550	3550
3551	3551	HB3124 - 98 - LRB104 10028 HLH 20099 b
3552	3552
3553	3553
3554	3554	HB3124- 99 -LRB104 10028 HLH 20099 b HB3124 - 99 - LRB104 10028 HLH 20099 b
3555	3555	HB3124 - 99 - LRB104 10028 HLH 20099 b
3556	3556	1 accrued, or incurred, directly or indirectly, to the
3557	3557	2 same person. This subparagraph (S) is exempt from
3558	3558	3 Section 250;
3559	3559	4 (T) For taxable years ending on or after December
3560	3560	5 31, 2011, in the case of a taxpayer who was required to
3561	3561	6 add back any insurance premiums under Section
3562	3562	7 203(d)(2)(D-9), such taxpayer may elect to subtract
3563	3563	8 that part of a reimbursement received from the
3564	3564	9 insurance company equal to the amount of the expense
3565	3565	10 or loss (including expenses incurred by the insurance
3566	3566	11 company) that would have been taken into account as a
3567	3567	12 deduction for federal income tax purposes if the
3568	3568	13 expense or loss had been uninsured. If a taxpayer
3569	3569	14 makes the election provided for by this subparagraph
3570	3570	15 (T), the insurer to which the premiums were paid must
3571	3571	16 add back to income the amount subtracted by the
3572	3572	17 taxpayer pursuant to this subparagraph (T). This
3573	3573	18 subparagraph (T) is exempt from the provisions of
3574	3574	19 Section 250; and
3575	3575	20 (U) For taxable years beginning on or after
3576	3576	21 January 1, 2023, for any cannabis establishment
3577	3577	22 operating in this State and licensed under the
3578	3578	23 Cannabis Regulation and Tax Act or any cannabis
3579	3579	24 cultivation center or medical cannabis dispensing
3580	3580	25 organization operating in this State and licensed
3581	3581	26 under the Compassionate Use of Medical Cannabis
3582	3582
3583	3583
3584	3584
3585	3585
3586	3586
3587	3587	HB3124 - 99 - LRB104 10028 HLH 20099 b
3588	3588
3589	3589
3590	3590	HB3124- 100 -LRB104 10028 HLH 20099 b HB3124 - 100 - LRB104 10028 HLH 20099 b
3591	3591	HB3124 - 100 - LRB104 10028 HLH 20099 b
3592	3592	1 Program Act, an amount equal to the deductions that
3593	3593	2 were disallowed under Section 280E of the Internal
3594	3594	3 Revenue Code for the taxable year and that would not be
3595	3595	4 added back under this subsection. The provisions of
3596	3596	5 this subparagraph (U) are exempt from the provisions
3597	3597	6 of Section 250.
3598	3598	7 (e) Gross income; adjusted gross income; taxable income.
3599	3599	8 (1) In general. Subject to the provisions of paragraph
3600	3600	9 (2) and subsection (b)(3), for purposes of this Section
3601	3601	10 and Section 803(e), a taxpayer's gross income, adjusted
3602	3602	11 gross income, or taxable income for the taxable year shall
3603	3603	12 mean the amount of gross income, adjusted gross income or
3604	3604	13 taxable income properly reportable for federal income tax
3605	3605	14 purposes for the taxable year under the provisions of the
3606	3606	15 Internal Revenue Code. Taxable income may be less than
3607	3607	16 zero. However, for taxable years ending on or after
3608	3608	17 December 31, 1986, net operating loss carryforwards from
3609	3609	18 taxable years ending prior to December 31, 1986, may not
3610	3610	19 exceed the sum of federal taxable income for the taxable
3611	3611	20 year before net operating loss deduction, plus the excess
3612	3612	21 of addition modifications over subtraction modifications
3613	3613	22 for the taxable year. For taxable years ending prior to
3614	3614	23 December 31, 1986, taxable income may never be an amount
3615	3615	24 in excess of the net operating loss for the taxable year as
3616	3616	25 defined in subsections (c) and (d) of Section 172 of the
3617	3617
3618	3618
3619	3619
3620	3620
3621	3621
3622	3622	HB3124 - 100 - LRB104 10028 HLH 20099 b
3623	3623
3624	3624
3625	3625	HB3124- 101 -LRB104 10028 HLH 20099 b HB3124 - 101 - LRB104 10028 HLH 20099 b
3626	3626	HB3124 - 101 - LRB104 10028 HLH 20099 b
3627	3627	1 Internal Revenue Code, provided that when taxable income
3628	3628	2 of a corporation (other than a Subchapter S corporation),
3629	3629	3 trust, or estate is less than zero and addition
3630	3630	4 modifications, other than those provided by subparagraph
3631	3631	5 (E) of paragraph (2) of subsection (b) for corporations or
3632	3632	6 subparagraph (E) of paragraph (2) of subsection (c) for
3633	3633	7 trusts and estates, exceed subtraction modifications, an
3634	3634	8 addition modification must be made under those
3635	3635	9 subparagraphs for any other taxable year to which the
3636	3636	10 taxable income less than zero (net operating loss) is
3637	3637	11 applied under Section 172 of the Internal Revenue Code or
3638	3638	12 under subparagraph (E) of paragraph (2) of this subsection
3639	3639	13 (e) applied in conjunction with Section 172 of the
3640	3640	14 Internal Revenue Code.
3641	3641	15 (2) Special rule. For purposes of paragraph (1) of
3642	3642	16 this subsection, the taxable income properly reportable
3643	3643	17 for federal income tax purposes shall mean:
3644	3644	18 (A) Certain life insurance companies. In the case
3645	3645	19 of a life insurance company subject to the tax imposed
3646	3646	20 by Section 801 of the Internal Revenue Code, life
3647	3647	21 insurance company taxable income, plus the amount of
3648	3648	22 distribution from pre-1984 policyholder surplus
3649	3649	23 accounts as calculated under Section 815a of the
3650	3650	24 Internal Revenue Code;
3651	3651	25 (B) Certain other insurance companies. In the case
3652	3652	26 of mutual insurance companies subject to the tax
3653	3653
3654	3654
3655	3655
3656	3656
3657	3657
3658	3658	HB3124 - 101 - LRB104 10028 HLH 20099 b
3659	3659
3660	3660
3661	3661	HB3124- 102 -LRB104 10028 HLH 20099 b HB3124 - 102 - LRB104 10028 HLH 20099 b
3662	3662	HB3124 - 102 - LRB104 10028 HLH 20099 b
3663	3663	1 imposed by Section 831 of the Internal Revenue Code,
3664	3664	2 insurance company taxable income;
3665	3665	3 (C) Regulated investment companies. In the case of
3666	3666	4 a regulated investment company subject to the tax
3667	3667	5 imposed by Section 852 of the Internal Revenue Code,
3668	3668	6 investment company taxable income;
3669	3669	7 (D) Real estate investment trusts. In the case of
3670	3670	8 a real estate investment trust subject to the tax
3671	3671	9 imposed by Section 857 of the Internal Revenue Code,
3672	3672	10 real estate investment trust taxable income;
3673	3673	11 (E) Consolidated corporations. In the case of a
3674	3674	12 corporation which is a member of an affiliated group
3675	3675	13 of corporations filing a consolidated income tax
3676	3676	14 return for the taxable year for federal income tax
3677	3677	15 purposes, taxable income determined as if such
3678	3678	16 corporation had filed a separate return for federal
3679	3679	17 income tax purposes for the taxable year and each
3680	3680	18 preceding taxable year for which it was a member of an
3681	3681	19 affiliated group. For purposes of this subparagraph,
3682	3682	20 the taxpayer's separate taxable income shall be
3683	3683	21 determined as if the election provided by Section
3684	3684	22 243(b)(2) of the Internal Revenue Code had been in
3685	3685	23 effect for all such years;
3686	3686	24 (F) Cooperatives. In the case of a cooperative
3687	3687	25 corporation or association, the taxable income of such
3688	3688	26 organization determined in accordance with the
3689	3689
3690	3690
3691	3691
3692	3692
3693	3693
3694	3694	HB3124 - 102 - LRB104 10028 HLH 20099 b
3695	3695
3696	3696
3697	3697	HB3124- 103 -LRB104 10028 HLH 20099 b HB3124 - 103 - LRB104 10028 HLH 20099 b
3698	3698	HB3124 - 103 - LRB104 10028 HLH 20099 b
3699	3699	1 provisions of Section 1381 through 1388 of the
3700	3700	2 Internal Revenue Code, but without regard to the
3701	3701	3 prohibition against offsetting losses from patronage
3702	3702	4 activities against income from nonpatronage
3703	3703	5 activities; except that a cooperative corporation or
3704	3704	6 association may make an election to follow its federal
3705	3705	7 income tax treatment of patronage losses and
3706	3706	8 nonpatronage losses. In the event such election is
3707	3707	9 made, such losses shall be computed and carried over
3708	3708	10 in a manner consistent with subsection (a) of Section
3709	3709	11 207 of this Act and apportioned by the apportionment
3710	3710	12 factor reported by the cooperative on its Illinois
3711	3711	13 income tax return filed for the taxable year in which
3712	3712	14 the losses are incurred. The election shall be
3713	3713	15 effective for all taxable years with original returns
3714	3714	16 due on or after the date of the election. In addition,
3715	3715	17 the cooperative may file an amended return or returns,
3716	3716	18 as allowed under this Act, to provide that the
3717	3717	19 election shall be effective for losses incurred or
3718	3718	20 carried forward for taxable years occurring prior to
3719	3719	21 the date of the election. Once made, the election may
3720	3720	22 only be revoked upon approval of the Director. The
3721	3721	23 Department shall adopt rules setting forth
3722	3722	24 requirements for documenting the elections and any
3723	3723	25 resulting Illinois net loss and the standards to be
3724	3724	26 used by the Director in evaluating requests to revoke
3725	3725
3726	3726
3727	3727
3728	3728
3729	3729
3730	3730	HB3124 - 103 - LRB104 10028 HLH 20099 b
3731	3731
3732	3732
3733	3733	HB3124- 104 -LRB104 10028 HLH 20099 b HB3124 - 104 - LRB104 10028 HLH 20099 b
3734	3734	HB3124 - 104 - LRB104 10028 HLH 20099 b
3735	3735	1 elections. Public Act 96-932 is declaratory of
3736	3736	2 existing law;
3737	3737	3 (G) Subchapter S corporations. In the case of: (i)
3738	3738	4 a Subchapter S corporation for which there is in
3739	3739	5 effect an election for the taxable year under Section
3740	3740	6 1362 of the Internal Revenue Code, the taxable income
3741	3741	7 of such corporation determined in accordance with
3742	3742	8 Section 1363(b) of the Internal Revenue Code, except
3743	3743	9 that taxable income shall take into account those
3744	3744	10 items which are required by Section 1363(b)(1) of the
3745	3745	11 Internal Revenue Code to be separately stated; and
3746	3746	12 (ii) a Subchapter S corporation for which there is in
3747	3747	13 effect a federal election to opt out of the provisions
3748	3748	14 of the Subchapter S Revision Act of 1982 and have
3749	3749	15 applied instead the prior federal Subchapter S rules
3750	3750	16 as in effect on July 1, 1982, the taxable income of
3751	3751	17 such corporation determined in accordance with the
3752	3752	18 federal Subchapter S rules as in effect on July 1,
3753	3753	19 1982; and
3754	3754	20 (H) Partnerships. In the case of a partnership,
3755	3755	21 taxable income determined in accordance with Section
3756	3756	22 703 of the Internal Revenue Code, except that taxable
3757	3757	23 income shall take into account those items which are
3758	3758	24 required by Section 703(a)(1) to be separately stated
3759	3759	25 but which would be taken into account by an individual
3760	3760	26 in calculating his taxable income.
3761	3761
3762	3762
3763	3763
3764	3764
3765	3765
3766	3766	HB3124 - 104 - LRB104 10028 HLH 20099 b
3767	3767
3768	3768
3769	3769	HB3124- 105 -LRB104 10028 HLH 20099 b HB3124 - 105 - LRB104 10028 HLH 20099 b
3770	3770	HB3124 - 105 - LRB104 10028 HLH 20099 b
3771	3771	1 (3) Recapture of business expenses on disposition of
3772	3772	2 asset or business. Notwithstanding any other law to the
3773	3773	3 contrary, if in prior years income from an asset or
3774	3774	4 business has been classified as business income and in a
3775	3775	5 later year is demonstrated to be non-business income, then
3776	3776	6 all expenses, without limitation, deducted in such later
3777	3777	7 year and in the 2 immediately preceding taxable years
3778	3778	8 related to that asset or business that generated the
3779	3779	9 non-business income shall be added back and recaptured as
3780	3780	10 business income in the year of the disposition of the
3781	3781	11 asset or business. Such amount shall be apportioned to
3782	3782	12 Illinois using the greater of the apportionment fraction
3783	3783	13 computed for the business under Section 304 of this Act
3784	3784	14 for the taxable year or the average of the apportionment
3785	3785	15 fractions computed for the business under Section 304 of
3786	3786	16 this Act for the taxable year and for the 2 immediately
3787	3787	17 preceding taxable years.
3788	3788	18 (f) Valuation limitation amount.
3789	3789	19 (1) In general. The valuation limitation amount
3790	3790	20 referred to in subsections (a)(2)(G), (c)(2)(I) and
3791	3791	21 (d)(2)(E) is an amount equal to:
3792	3792	22 (A) The sum of the pre-August 1, 1969 appreciation
3793	3793	23 amounts (to the extent consisting of gain reportable
3794	3794	24 under the provisions of Section 1245 or 1250 of the
3795	3795	25 Internal Revenue Code) for all property in respect of
3796	3796
3797	3797
3798	3798
3799	3799
3800	3800
3801	3801	HB3124 - 105 - LRB104 10028 HLH 20099 b
3802	3802
3803	3803
3804	3804	HB3124- 106 -LRB104 10028 HLH 20099 b HB3124 - 106 - LRB104 10028 HLH 20099 b
3805	3805	HB3124 - 106 - LRB104 10028 HLH 20099 b
3806	3806	1 which such gain was reported for the taxable year;
3807	3807	2 plus
3808	3808	3 (B) The lesser of (i) the sum of the pre-August 1,
3809	3809	4 1969 appreciation amounts (to the extent consisting of
3810	3810	5 capital gain) for all property in respect of which
3811	3811	6 such gain was reported for federal income tax purposes
3812	3812	7 for the taxable year, or (ii) the net capital gain for
3813	3813	8 the taxable year, reduced in either case by any amount
3814	3814	9 of such gain included in the amount determined under
3815	3815	10 subsection (a)(2)(F) or (c)(2)(H).
3816	3816	11 (2) Pre-August 1, 1969 appreciation amount.
3817	3817	12 (A) If the fair market value of property referred
3818	3818	13 to in paragraph (1) was readily ascertainable on
3819	3819	14 August 1, 1969, the pre-August 1, 1969 appreciation
3820	3820	15 amount for such property is the lesser of (i) the
3821	3821	16 excess of such fair market value over the taxpayer's
3822	3822	17 basis (for determining gain) for such property on that
3823	3823	18 date (determined under the Internal Revenue Code as in
3824	3824	19 effect on that date), or (ii) the total gain realized
3825	3825	20 and reportable for federal income tax purposes in
3826	3826	21 respect of the sale, exchange or other disposition of
3827	3827	22 such property.
3828	3828	23 (B) If the fair market value of property referred
3829	3829	24 to in paragraph (1) was not readily ascertainable on
3830	3830	25 August 1, 1969, the pre-August 1, 1969 appreciation
3831	3831	26 amount for such property is that amount which bears
3832	3832
3833	3833
3834	3834
3835	3835
3836	3836
3837	3837	HB3124 - 106 - LRB104 10028 HLH 20099 b
3838	3838
3839	3839
3840	3840	HB3124- 107 -LRB104 10028 HLH 20099 b HB3124 - 107 - LRB104 10028 HLH 20099 b
3841	3841	HB3124 - 107 - LRB104 10028 HLH 20099 b
3842	3842	1 the same ratio to the total gain reported in respect of
3843	3843	2 the property for federal income tax purposes for the
3844	3844	3 taxable year, as the number of full calendar months in
3845	3845	4 that part of the taxpayer's holding period for the
3846	3846	5 property ending July 31, 1969 bears to the number of
3847	3847	6 full calendar months in the taxpayer's entire holding
3848	3848	7 period for the property.
3849	3849	8 (C) The Department shall prescribe such
3850	3850	9 regulations as may be necessary to carry out the
3851	3851	10 purposes of this paragraph.
3852	3852	11 (g) Double deductions. Unless specifically provided
3853	3853	12 otherwise, nothing in this Section shall permit the same item
3854	3854	13 to be deducted more than once.
3855	3855	14 (h) Legislative intention. Except as expressly provided by
3856	3856	15 this Section there shall be no modifications or limitations on
3857	3857	16 the amounts of income, gain, loss or deduction taken into
3858	3858	17 account in determining gross income, adjusted gross income or
3859	3859	18 taxable income for federal income tax purposes for the taxable
3860	3860	19 year, or in the amount of such items entering into the
3861	3861	20 computation of base income and net income under this Act for
3862	3862	21 such taxable year, whether in respect of property values as of
3863	3863	22 August 1, 1969 or otherwise.
3864	3864	23 (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
3865	3865	24 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
3866	3866
3867	3867
3868	3868
3869	3869
3870	3870
3871	3871	HB3124 - 107 - LRB104 10028 HLH 20099 b
3872	3872
3873	3873
3874	3874	HB3124- 108 -LRB104 10028 HLH 20099 b HB3124 - 108 - LRB104 10028 HLH 20099 b
3875	3875	HB3124 - 108 - LRB104 10028 HLH 20099 b
3876	3876
3877	3877
3878	3878
3879	3879
3880	3880
3881	3881	HB3124 - 108 - LRB104 10028 HLH 20099 b