Illinois Senate Bill SB0089 Introduced / Bill

                    104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0089 Introduced 1/17/2025, by Sen. Mike Porfirio SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 Amends the Illinois Income Tax Act. Provides that the deduction for compensation paid to a resident by reason of being on active duty in the Armed Forces of the United States applies to compensation paid to all members of the uniformed services. Defines "uniformed services".  LRB104 03295 HLH 13317 b   A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0089 Introduced 1/17/2025, by Sen. Mike Porfirio SYNOPSIS AS INTRODUCED:  35 ILCS 5/203 35 ILCS 5/203  Amends the Illinois Income Tax Act. Provides that the deduction for compensation paid to a resident by reason of being on active duty in the Armed Forces of the United States applies to compensation paid to all members of the uniformed services. Defines "uniformed services".  LRB104 03295 HLH 13317 b     LRB104 03295 HLH 13317 b   A BILL FOR
104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0089 Introduced 1/17/2025, by Sen. Mike Porfirio SYNOPSIS AS INTRODUCED:
35 ILCS 5/203 35 ILCS 5/203
35 ILCS 5/203
Amends the Illinois Income Tax Act. Provides that the deduction for compensation paid to a resident by reason of being on active duty in the Armed Forces of the United States applies to compensation paid to all members of the uniformed services. Defines "uniformed services".
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A BILL FOR
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1  AN ACT concerning revenue.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Illinois Income Tax Act is amended by
5  changing Section 203 as follows:
6  (35 ILCS 5/203)
7  Sec. 203. Base income defined.
8  (a) Individuals.
9  (1) In general. In the case of an individual, base
10  income means an amount equal to the taxpayer's adjusted
11  gross income for the taxable year as modified by paragraph
12  (2).
13  (2) Modifications. The adjusted gross income referred
14  to in paragraph (1) shall be modified by adding thereto
15  the sum of the following amounts:
16  (A) An amount equal to all amounts paid or accrued
17  to the taxpayer as interest or dividends during the
18  taxable year to the extent excluded from gross income
19  in the computation of adjusted gross income, except
20  stock dividends of qualified public utilities
21  described in Section 305(e) of the Internal Revenue
22  Code;
23  (B) An amount equal to the amount of tax imposed by

 

104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0089 Introduced 1/17/2025, by Sen. Mike Porfirio SYNOPSIS AS INTRODUCED:
35 ILCS 5/203 35 ILCS 5/203
35 ILCS 5/203
Amends the Illinois Income Tax Act. Provides that the deduction for compensation paid to a resident by reason of being on active duty in the Armed Forces of the United States applies to compensation paid to all members of the uniformed services. Defines "uniformed services".
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A BILL FOR

 

 

35 ILCS 5/203



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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  on or after December 31, 2007, the National Guard of
2  any other state. For taxable years ending on or after
3  December 31, 2001, any amount included in such total
4  in respect of any compensation (including but not
5  limited to any compensation paid or accrued to a
6  serviceman while a prisoner of war or missing in
7  action) paid to a resident by reason of being a member
8  of any component of the uniformed services Armed
9  Forces of the United States and in respect of any
10  compensation paid or accrued to a resident who as a
11  governmental employee was a prisoner of war or missing
12  in action, and in respect of any compensation paid to a
13  resident in 2001 or thereafter by reason of being a
14  member of the Illinois National Guard or, beginning
15  with taxable years ending on or after December 31,
16  2007, the National Guard of any other state. As used in
17  this subparagraph (E), for taxable years ending before
18  December 31, 2025, "uniformed services" means the
19  Armed Forces of the United States. As used in this
20  subparagraph (E), for taxable years ending on or after
21  December 31, 2025, "uniformed services" has the
22  meaning given to that term in 37 U.S.C. 101. The
23  provisions of this subparagraph (E) are exempt from
24  the provisions of Section 250;
25  (F) An amount equal to all amounts included in
26  such total pursuant to the provisions of Sections

 

 

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1  402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
2  408 of the Internal Revenue Code, or included in such
3  total as distributions under the provisions of any
4  retirement or disability plan for employees of any
5  governmental agency or unit, or retirement payments to
6  retired partners, which payments are excluded in
7  computing net earnings from self employment by Section
8  1402 of the Internal Revenue Code and regulations
9  adopted pursuant thereto;
10  (G) The valuation limitation amount;
11  (H) An amount equal to the amount of any tax
12  imposed by this Act which was refunded to the taxpayer
13  and included in such total for the taxable year;
14  (I) An amount equal to all amounts included in
15  such total pursuant to the provisions of Section 111
16  of the Internal Revenue Code as a recovery of items
17  previously deducted from adjusted gross income in the
18  computation of taxable income;
19  (J) An amount equal to those dividends included in
20  such total which were paid by a corporation which
21  conducts business operations in a River Edge
22  Redevelopment Zone or zones created under the River
23  Edge Redevelopment Zone Act, and conducts
24  substantially all of its operations in a River Edge
25  Redevelopment Zone or zones. This subparagraph (J) is
26  exempt from the provisions of Section 250;

 

 

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1  (K) An amount equal to those dividends included in
2  such total that were paid by a corporation that
3  conducts business operations in a federally designated
4  Foreign Trade Zone or Sub-Zone and that is designated
5  a High Impact Business located in Illinois; provided
6  that dividends eligible for the deduction provided in
7  subparagraph (J) of paragraph (2) of this subsection
8  shall not be eligible for the deduction provided under
9  this subparagraph (K);
10  (L) For taxable years ending after December 31,
11  1983, an amount equal to all social security benefits
12  and railroad retirement benefits included in such
13  total pursuant to Sections 72(r) and 86 of the
14  Internal Revenue Code;
15  (M) With the exception of any amounts subtracted
16  under subparagraph (N), an amount equal to the sum of
17  all amounts disallowed as deductions by (i) Sections
18  171(a)(2) and 265(a)(2) of the Internal Revenue Code,
19  and all amounts of expenses allocable to interest and
20  disallowed as deductions by Section 265(a)(1) of the
21  Internal Revenue Code; and (ii) for taxable years
22  ending on or after August 13, 1999, Sections
23  171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
24  Internal Revenue Code, plus, for taxable years ending
25  on or after December 31, 2011, Section 45G(e)(3) of
26  the Internal Revenue Code and, for taxable years

 

 

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1  ending on or after December 31, 2008, any amount
2  included in gross income under Section 87 of the
3  Internal Revenue Code; the provisions of this
4  subparagraph are exempt from the provisions of Section
5  250;
6  (N) An amount equal to all amounts included in
7  such total which are exempt from taxation by this
8  State either by reason of its statutes or Constitution
9  or by reason of the Constitution, treaties or statutes
10  of the United States; provided that, in the case of any
11  statute of this State that exempts income derived from
12  bonds or other obligations from the tax imposed under
13  this Act, the amount exempted shall be the interest
14  net of bond premium amortization;
15  (O) An amount equal to any contribution made to a
16  job training project established pursuant to the Tax
17  Increment Allocation Redevelopment Act;
18  (P) An amount equal to the amount of the deduction
19  used to compute the federal income tax credit for
20  restoration of substantial amounts held under claim of
21  right for the taxable year pursuant to Section 1341 of
22  the Internal Revenue Code or of any itemized deduction
23  taken from adjusted gross income in the computation of
24  taxable income for restoration of substantial amounts
25  held under claim of right for the taxable year;
26  (Q) An amount equal to any amounts included in

 

 

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1  such total, received by the taxpayer as an
2  acceleration in the payment of life, endowment or
3  annuity benefits in advance of the time they would
4  otherwise be payable as an indemnity for a terminal
5  illness;
6  (R) An amount equal to the amount of any federal or
7  State bonus paid to veterans of the Persian Gulf War;
8  (S) An amount, to the extent included in adjusted
9  gross income, equal to the amount of a contribution
10  made in the taxable year on behalf of the taxpayer to a
11  medical care savings account established under the
12  Medical Care Savings Account Act or the Medical Care
13  Savings Account Act of 2000 to the extent the
14  contribution is accepted by the account administrator
15  as provided in that Act;
16  (T) An amount, to the extent included in adjusted
17  gross income, equal to the amount of interest earned
18  in the taxable year on a medical care savings account
19  established under the Medical Care Savings Account Act
20  or the Medical Care Savings Account Act of 2000 on
21  behalf of the taxpayer, other than interest added
22  pursuant to item (D-5) of this paragraph (2);
23  (U) For one taxable year beginning on or after
24  January 1, 1994, an amount equal to the total amount of
25  tax imposed and paid under subsections (a) and (b) of
26  Section 201 of this Act on grant amounts received by

 

 

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1  the taxpayer under the Nursing Home Grant Assistance
2  Act during the taxpayer's taxable years 1992 and 1993;
3  (V) Beginning with tax years ending on or after
4  December 31, 1995 and ending with tax years ending on
5  or before December 31, 2004, an amount equal to the
6  amount paid by a taxpayer who is a self-employed
7  taxpayer, a partner of a partnership, or a shareholder
8  in a Subchapter S corporation for health insurance or
9  long-term care insurance for that taxpayer or that
10  taxpayer's spouse or dependents, to the extent that
11  the amount paid for that health insurance or long-term
12  care insurance may be deducted under Section 213 of
13  the Internal Revenue Code, has not been deducted on
14  the federal income tax return of the taxpayer, and
15  does not exceed the taxable income attributable to
16  that taxpayer's income, self-employment income, or
17  Subchapter S corporation income; except that no
18  deduction shall be allowed under this item (V) if the
19  taxpayer is eligible to participate in any health
20  insurance or long-term care insurance plan of an
21  employer of the taxpayer or the taxpayer's spouse. The
22  amount of the health insurance and long-term care
23  insurance subtracted under this item (V) shall be
24  determined by multiplying total health insurance and
25  long-term care insurance premiums paid by the taxpayer
26  times a number that represents the fractional

 

 

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1  percentage of eligible medical expenses under Section
2  213 of the Internal Revenue Code of 1986 not actually
3  deducted on the taxpayer's federal income tax return;
4  (W) For taxable years beginning on or after
5  January 1, 1998, all amounts included in the
6  taxpayer's federal gross income in the taxable year
7  from amounts converted from a regular IRA to a Roth
8  IRA. This paragraph is exempt from the provisions of
9  Section 250;
10  (X) For taxable year 1999 and thereafter, an
11  amount equal to the amount of any (i) distributions,
12  to the extent includible in gross income for federal
13  income tax purposes, made to the taxpayer because of
14  his or her status as a victim of persecution for racial
15  or religious reasons by Nazi Germany or any other Axis
16  regime or as an heir of the victim and (ii) items of
17  income, to the extent includible in gross income for
18  federal income tax purposes, attributable to, derived
19  from or in any way related to assets stolen from,
20  hidden from, or otherwise lost to a victim of
21  persecution for racial or religious reasons by Nazi
22  Germany or any other Axis regime immediately prior to,
23  during, and immediately after World War II, including,
24  but not limited to, interest on the proceeds
25  receivable as insurance under policies issued to a
26  victim of persecution for racial or religious reasons

 

 

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

 

 

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1  College Savings Pool account under Section 16.5 of the
2  State Treasurer Act or (ii) the Illinois Prepaid
3  Tuition Trust Fund, except that amounts excluded from
4  gross income under Section 529(c)(3)(C)(i) of the
5  Internal Revenue Code shall not be considered moneys
6  contributed under this subparagraph (Y). For purposes
7  of this subparagraph, contributions made by an
8  employer on behalf of an employee, or matching
9  contributions made by an employee, shall be treated as
10  made by the employee. This subparagraph (Y) is exempt
11  from the provisions of Section 250;
12  (Z) For taxable years 2001 and thereafter, for the
13  taxable year in which the bonus depreciation deduction
14  is taken on the taxpayer's federal income tax return
15  under subsection (k) of Section 168 of the Internal
16  Revenue Code and for each applicable taxable year
17  thereafter, an amount equal to "x", where:
18  (1) "y" equals the amount of the depreciation
19  deduction taken for the taxable year on the
20  taxpayer's federal income tax return on property
21  for which the bonus depreciation deduction was
22  taken in any year under subsection (k) of Section
23  168 of the Internal Revenue Code, but not
24  including the bonus depreciation deduction;
25  (2) for taxable years ending on or before
26  December 31, 2005, "x" equals "y" multiplied by 30

 

 

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

 

 

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1  December 31, 2021, "x" equals "y" multiplied
2  by 100 times the percentage bonus depreciation
3  on the property (that is, 100(bonus%)) and
4  then divided by 100 times 1 minus the
5  percentage bonus depreciation on the property
6  (that is, 100(1-bonus%)).
7  The aggregate amount deducted under this
8  subparagraph in all taxable years for any one piece of
9  property may not exceed the amount of the bonus
10  depreciation deduction taken on that property on the
11  taxpayer's federal income tax return under subsection
12  (k) of Section 168 of the Internal Revenue Code. This
13  subparagraph (Z) is exempt from the provisions of
14  Section 250;
15  (AA) If the taxpayer sells, transfers, abandons,
16  or otherwise disposes of property for which the
17  taxpayer was required in any taxable year to make an
18  addition modification under subparagraph (D-15), then
19  an amount equal to that addition modification.
20  If the taxpayer continues to own property through
21  the last day of the last tax year for which a
22  subtraction is allowed with respect to that property
23  under subparagraph (Z) and for which the taxpayer was
24  required in any taxable year to make an addition
25  modification under subparagraph (D-15), then an amount
26  equal to that addition modification.

 

 

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1  The taxpayer is allowed to take the deduction
2  under this subparagraph only once with respect to any
3  one piece of property.
4  This subparagraph (AA) is exempt from the
5  provisions of Section 250;
6  (BB) Any amount included in adjusted gross income,
7  other than salary, received by a driver in a
8  ridesharing arrangement using a motor vehicle;
9  (CC) The amount of (i) any interest income (net of
10  the deductions allocable thereto) taken into account
11  for the taxable year with respect to a transaction
12  with a taxpayer that is required to make an addition
13  modification with respect to such transaction under
14  Section 203(a)(2)(D-17), 203(b)(2)(E-12),
15  203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
16  the amount of that addition modification, and (ii) any
17  income from intangible property (net of the deductions
18  allocable thereto) taken into account for the taxable
19  year with respect to a transaction with a taxpayer
20  that is required to make an addition modification with
21  respect to such transaction under Section
22  203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
23  203(d)(2)(D-8), but not to exceed the amount of that
24  addition modification. This subparagraph (CC) is
25  exempt from the provisions of Section 250;
26  (DD) An amount equal to the interest income taken

 

 

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

 

 

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

 

 

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1  insurance company equal to the amount of the expense
2  or loss (including expenses incurred by the insurance
3  company) that would have been taken into account as a
4  deduction for federal income tax purposes if the
5  expense or loss had been uninsured. If a taxpayer
6  makes the election provided for by this subparagraph
7  (GG), the insurer to which the premiums were paid must
8  add back to income the amount subtracted by the
9  taxpayer pursuant to this subparagraph (GG). This
10  subparagraph (GG) is exempt from the provisions of
11  Section 250;
12  (HH) For taxable years beginning on or after
13  January 1, 2018 and prior to January 1, 2028, a maximum
14  of $10,000 contributed in the taxable year to a
15  qualified ABLE account under Section 16.6 of the State
16  Treasurer Act, except that amounts excluded from gross
17  income under Section 529(c)(3)(C)(i) or Section
18  529A(c)(1)(C) of the Internal Revenue Code shall not
19  be considered moneys contributed under this
20  subparagraph (HH). For purposes of this subparagraph
21  (HH), contributions made by an employer on behalf of
22  an employee, or matching contributions made by an
23  employee, shall be treated as made by the employee;
24  (II) For taxable years that begin on or after
25  January 1, 2021 and begin before January 1, 2026, the
26  amount that is included in the taxpayer's federal

 

 

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1  adjusted gross income pursuant to Section 61 of the
2  Internal Revenue Code as discharge of indebtedness
3  attributable to student loan forgiveness and that is
4  not excluded from the taxpayer's federal adjusted
5  gross income pursuant to paragraph (5) of subsection
6  (f) of Section 108 of the Internal Revenue Code;
7  (JJ) For taxable years beginning on or after
8  January 1, 2023, for any cannabis establishment
9  operating in this State and licensed under the
10  Cannabis Regulation and Tax Act or any cannabis
11  cultivation center or medical cannabis dispensing
12  organization operating in this State and licensed
13  under the Compassionate Use of Medical Cannabis
14  Program Act, an amount equal to the deductions that
15  were disallowed under Section 280E of the Internal
16  Revenue Code for the taxable year and that would not be
17  added back under this subsection. The provisions of
18  this subparagraph (JJ) are exempt from the provisions
19  of Section 250; and
20  (KK) To the extent includible in gross income for
21  federal income tax purposes, any amount awarded or
22  paid to the taxpayer as a result of a judgment or
23  settlement for fertility fraud as provided in Section
24  15 of the Illinois Fertility Fraud Act, donor
25  fertility fraud as provided in Section 20 of the
26  Illinois Fertility Fraud Act, or similar action in

 

 

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

 

 

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1  (1) In general. In the case of a corporation, base
2  income means an amount equal to the taxpayer's taxable
3  income for the taxable year as modified by paragraph (2).
4  (2) Modifications. The taxable income referred to in
5  paragraph (1) shall be modified by adding thereto the sum
6  of the following amounts:
7  (A) An amount equal to all amounts paid or accrued
8  to the taxpayer as interest and all distributions
9  received from regulated investment companies during
10  the taxable year to the extent excluded from gross
11  income in the computation of taxable income;
12  (B) An amount equal to the amount of tax imposed by
13  this Act to the extent deducted from gross income in
14  the computation of taxable income for the taxable
15  year;
16  (C) In the case of a regulated investment company,
17  an amount equal to the excess of (i) the net long-term
18  capital gain for the taxable year, over (ii) the
19  amount of the capital gain dividends designated as
20  such in accordance with Section 852(b)(3)(C) of the
21  Internal Revenue Code and any amount designated under
22  Section 852(b)(3)(D) of the Internal Revenue Code,
23  attributable to the taxable year (this amendatory Act
24  of 1995 (Public Act 89-89) is declarative of existing
25  law and is not a new enactment);
26  (D) The amount of any net operating loss deduction

 

 

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

 

 

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

 

 

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1  subtraction is allowed with respect to that property
2  under subparagraph (T) and for which the taxpayer was
3  allowed in any taxable year to make a subtraction
4  modification under subparagraph (T), then an amount
5  equal to that subtraction modification.
6  The taxpayer is required to make the addition
7  modification under this subparagraph only once with
8  respect to any one piece of property;
9  (E-12) An amount equal to the amount otherwise
10  allowed as a deduction in computing base income for
11  interest paid, accrued, or incurred, directly or
12  indirectly, (i) for taxable years ending on or after
13  December 31, 2004, to a foreign person who would be a
14  member of the same unitary business group but for the
15  fact the foreign person's business activity outside
16  the United States is 80% or more of the foreign
17  person's total business activity and (ii) for taxable
18  years ending on or after December 31, 2008, to a person
19  who would be a member of the same unitary business
20  group but for the fact that the person is prohibited
21  under Section 1501(a)(27) from being included in the
22  unitary business group because he or she is ordinarily
23  required to apportion business income under different
24  subsections of Section 304. The addition modification
25  required by this subparagraph shall be reduced to the
26  extent that dividends were included in base income of

 

 

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

 

 

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

 

 

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1  and standards by which the Department will utilize
2  its authority under Section 404 of this Act;
3  (E-13) An amount equal to the amount of intangible
4  expenses and costs otherwise allowed as a deduction in
5  computing base income, and that were paid, accrued, or
6  incurred, directly or indirectly, (i) for taxable
7  years ending on or after December 31, 2004, to a
8  foreign person who would be a member of the same
9  unitary business group but for the fact that the
10  foreign person's business activity outside the United
11  States is 80% or more of that person's total business
12  activity and (ii) for taxable years ending on or after
13  December 31, 2008, to a person who would be a member of
14  the same unitary business group but for the fact that
15  the person is prohibited under Section 1501(a)(27)
16  from being included in the unitary business group
17  because he or she is ordinarily required to apportion
18  business income under different subsections of Section
19  304. The addition modification required by this
20  subparagraph shall be reduced to the extent that
21  dividends were included in base income of the unitary
22  group for the same taxable year and received by the
23  taxpayer or by a member of the taxpayer's unitary
24  business group (including amounts included in gross
25  income pursuant to Sections 951 through 964 of the
26  Internal Revenue Code and amounts included in gross

 

 

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

 

 

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

 

 

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

 

 

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1  member of the taxpayer's unitary business group
2  (including amounts included in gross income under
3  Sections 951 through 964 of the Internal Revenue Code
4  and amounts included in gross income under Section 78
5  of the Internal Revenue Code) with respect to the
6  stock of the same person to whom the premiums and costs
7  were directly or indirectly paid, incurred, or
8  accrued. The preceding sentence does not apply to the
9  extent that the same dividends caused a reduction to
10  the addition modification required under Section
11  203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
12  Act;
13  (E-15) For taxable years beginning after December
14  31, 2008, any deduction for dividends paid by a
15  captive real estate investment trust that is allowed
16  to a real estate investment trust under Section
17  857(b)(2)(B) of the Internal Revenue Code for
18  dividends paid;
19  (E-16) An amount equal to the credit allowable to
20  the taxpayer under Section 218(a) of this Act,
21  determined without regard to Section 218(c) of this
22  Act;
23  (E-17) For taxable years ending on or after
24  December 31, 2017, an amount equal to the deduction
25  allowed under Section 199 of the Internal Revenue Code
26  for the taxable year;

 

 

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1  (E-18) for taxable years beginning after December
2  31, 2018, an amount equal to the deduction allowed
3  under Section 250(a)(1)(A) of the Internal Revenue
4  Code for the taxable year;
5  (E-19) for taxable years ending on or after June
6  30, 2021, an amount equal to the deduction allowed
7  under Section 250(a)(1)(B)(i) of the Internal Revenue
8  Code for the taxable year;
9  (E-20) for taxable years ending on or after June
10  30, 2021, an amount equal to the deduction allowed
11  under Sections 243(e) and 245A(a) of the Internal
12  Revenue Code for the taxable year;
13  (E-21) the amount that is claimed as a federal
14  deduction when computing the taxpayer's federal
15  taxable income for the taxable year and that is
16  attributable to an endowment gift for which the
17  taxpayer receives a credit under the Illinois Gives
18  Tax Credit Act;
19  and by deducting from the total so obtained the sum of the
20  following amounts:
21  (F) An amount equal to the amount of any tax
22  imposed by this Act which was refunded to the taxpayer
23  and included in such total for the taxable year;
24  (G) An amount equal to any amount included in such
25  total under Section 78 of the Internal Revenue Code;
26  (H) In the case of a regulated investment company,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  under the previous sentence;
2  (N) Two times any contribution made during the
3  taxable year to a designated zone organization to the
4  extent that the contribution (i) qualifies as a
5  charitable contribution under subsection (c) of
6  Section 170 of the Internal Revenue Code and (ii)
7  must, by its terms, be used for a project approved by
8  the Department of Commerce and Economic Opportunity
9  under Section 11 of the Illinois Enterprise Zone Act
10  or under Section 10-10 of the River Edge Redevelopment
11  Zone Act. This subparagraph (N) is exempt from the
12  provisions of Section 250;
13  (O) An amount equal to: (i) 85% for taxable years
14  ending on or before December 31, 1992, or, a
15  percentage equal to the percentage allowable under
16  Section 243(a)(1) of the Internal Revenue Code of 1986
17  for taxable years ending after December 31, 1992, of
18  the amount by which dividends included in taxable
19  income and received from a corporation that is not
20  created or organized under the laws of the United
21  States or any state or political subdivision thereof,
22  including, for taxable years ending on or after
23  December 31, 1988, dividends received or deemed
24  received or paid or deemed paid under Sections 951
25  through 965 of the Internal Revenue Code, exceed the
26  amount of the modification provided under subparagraph

 

 

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1  (G) of paragraph (2) of this subsection (b) which is
2  related to such dividends, and including, for taxable
3  years ending on or after December 31, 2008, dividends
4  received from a captive real estate investment trust;
5  plus (ii) 100% of the amount by which dividends,
6  included in taxable income and received, including,
7  for taxable years ending on or after December 31,
8  1988, dividends received or deemed received or paid or
9  deemed paid under Sections 951 through 964 of the
10  Internal Revenue Code and including, for taxable years
11  ending on or after December 31, 2008, dividends
12  received from a captive real estate investment trust,
13  from any such corporation specified in clause (i) that
14  would but for the provisions of Section 1504(b)(3) of
15  the Internal Revenue Code be treated as a member of the
16  affiliated group which includes the dividend
17  recipient, exceed the amount of the modification
18  provided under subparagraph (G) of paragraph (2) of
19  this subsection (b) which is related to such
20  dividends. For taxable years ending on or after June
21  30, 2021, (i) for purposes of this subparagraph, the
22  term "dividend" does not include any amount treated as
23  a dividend under Section 1248 of the Internal Revenue
24  Code, and (ii) this subparagraph shall not apply to
25  dividends for which a deduction is allowed under
26  Section 245(a) of the Internal Revenue Code. This

 

 

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1  subparagraph (O) is exempt from the provisions of
2  Section 250 of this Act;
3  (P) An amount equal to any contribution made to a
4  job training project established pursuant to the Tax
5  Increment Allocation Redevelopment Act;
6  (Q) An amount equal to the amount of the deduction
7  used to compute the federal income tax credit for
8  restoration of substantial amounts held under claim of
9  right for the taxable year pursuant to Section 1341 of
10  the Internal Revenue Code;
11  (R) On and after July 20, 1999, in the case of an
12  attorney-in-fact with respect to whom an interinsurer
13  or a reciprocal insurer has made the election under
14  Section 835 of the Internal Revenue Code, 26 U.S.C.
15  835, an amount equal to the excess, if any, of the
16  amounts paid or incurred by that interinsurer or
17  reciprocal insurer in the taxable year to the
18  attorney-in-fact over the deduction allowed to that
19  interinsurer or reciprocal insurer with respect to the
20  attorney-in-fact under Section 835(b) of the Internal
21  Revenue Code for the taxable year; the provisions of
22  this subparagraph are exempt from the provisions of
23  Section 250;
24  (S) For taxable years ending on or after December
25  31, 1997, in the case of a Subchapter S corporation, an
26  amount equal to all amounts of income allocable to a

 

 

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1  shareholder subject to the Personal Property Tax
2  Replacement Income Tax imposed by subsections (c) and
3  (d) of Section 201 of this Act, including amounts
4  allocable to organizations exempt from federal income
5  tax by reason of Section 501(a) of the Internal
6  Revenue Code. This subparagraph (S) is exempt from the
7  provisions of Section 250;
8  (T) For taxable years 2001 and thereafter, for the
9  taxable year in which the bonus depreciation deduction
10  is taken on the taxpayer's federal income tax return
11  under subsection (k) of Section 168 of the Internal
12  Revenue Code and for each applicable taxable year
13  thereafter, an amount equal to "x", where:
14  (1) "y" equals the amount of the depreciation
15  deduction taken for the taxable year on the
16  taxpayer's federal income tax return on property
17  for which the bonus depreciation deduction was
18  taken in any year under subsection (k) of Section
19  168 of the Internal Revenue Code, but not
20  including the bonus depreciation deduction;
21  (2) for taxable years ending on or before
22  December 31, 2005, "x" equals "y" multiplied by 30
23  and then divided by 70 (or "y" multiplied by
24  0.429); and
25  (3) for taxable years ending after December
26  31, 2005:

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  makes the election provided for by this subparagraph
2  (Y), the insurer to which the premiums were paid must
3  add back to income the amount subtracted by the
4  taxpayer pursuant to this subparagraph (Y). This
5  subparagraph (Y) is exempt from the provisions of
6  Section 250;
7  (Z) The difference between the nondeductible
8  controlled foreign corporation dividends under Section
9  965(e)(3) of the Internal Revenue Code over the
10  taxable income of the taxpayer, computed without
11  regard to Section 965(e)(2)(A) of the Internal Revenue
12  Code, and without regard to any net operating loss
13  deduction. This subparagraph (Z) is exempt from the
14  provisions of Section 250; and
15  (AA) For taxable years beginning on or after
16  January 1, 2023, for any cannabis establishment
17  operating in this State and licensed under the
18  Cannabis Regulation and Tax Act or any cannabis
19  cultivation center or medical cannabis dispensing
20  organization operating in this State and licensed
21  under the Compassionate Use of Medical Cannabis
22  Program Act, an amount equal to the deductions that
23  were disallowed under Section 280E of the Internal
24  Revenue Code for the taxable year and that would not be
25  added back under this subsection. The provisions of
26  this subparagraph (AA) are exempt from the provisions

 

 

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1  of Section 250.
2  (3) Special rule. For purposes of paragraph (2)(A),
3  "gross income" in the case of a life insurance company,
4  for tax years ending on and after December 31, 1994, and
5  prior to December 31, 2011, shall mean the gross
6  investment income for the taxable year and, for tax years
7  ending on or after December 31, 2011, shall mean all
8  amounts included in life insurance gross income under
9  Section 803(a)(3) of the Internal Revenue Code.
10  (c) Trusts and estates.
11  (1) In general. In the case of a trust or estate, base
12  income means an amount equal to the taxpayer's taxable
13  income for the taxable year as modified by paragraph (2).
14  (2) Modifications. Subject to the provisions of
15  paragraph (3), the taxable income referred to in paragraph
16  (1) shall be modified by adding thereto the sum of the
17  following amounts:
18  (A) An amount equal to all amounts paid or accrued
19  to the taxpayer as interest or dividends during the
20  taxable year to the extent excluded from gross income
21  in the computation of taxable income;
22  (B) In the case of (i) an estate, $600; (ii) a
23  trust which, under its governing instrument, is
24  required to distribute all of its income currently,
25  $300; and (iii) any other trust, $100, but in each such

 

 

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

 

 

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1  which was taken into account in calculating the
2  base income of an earlier taxable year, and
3  (ii) the addition modification relating to the
4  net operating loss carried back or forward to the
5  taxable year from any taxable year ending prior to
6  December 31, 1986 shall not exceed the amount of
7  such carryback or carryforward;
8  For taxable years in which there is a net
9  operating loss carryback or carryforward from more
10  than one other taxable year ending prior to December
11  31, 1986, the addition modification provided in this
12  subparagraph (E) shall be the sum of the amounts
13  computed independently under the preceding provisions
14  of this subparagraph (E) for each such taxable year;
15  (F) For taxable years ending on or after January
16  1, 1989, an amount equal to the tax deducted pursuant
17  to Section 164 of the Internal Revenue Code if the
18  trust or estate is claiming the same tax for purposes
19  of the Illinois foreign tax credit under Section 601
20  of this Act;
21  (G) An amount equal to the amount of the capital
22  gain deduction allowable under the Internal Revenue
23  Code, to the extent deducted from gross income in the
24  computation of taxable income;
25  (G-5) For taxable years ending after December 31,
26  1997, an amount equal to any eligible remediation

 

 

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

 

 

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1  (G-12) An amount equal to the amount otherwise
2  allowed as a deduction in computing base income for
3  interest paid, accrued, or incurred, directly or
4  indirectly, (i) for taxable years ending on or after
5  December 31, 2004, to a foreign person who would be a
6  member of the same unitary business group but for the
7  fact that the foreign person's business activity
8  outside the United States is 80% or more of the foreign
9  person's total business activity and (ii) for taxable
10  years ending on or after December 31, 2008, to a person
11  who would be a member of the same unitary business
12  group but for the fact that the person is prohibited
13  under Section 1501(a)(27) from being included in the
14  unitary business group because he or she is ordinarily
15  required to apportion business income under different
16  subsections of Section 304. The addition modification
17  required by this subparagraph shall be reduced to the
18  extent that dividends were included in base income of
19  the unitary group for the same taxable year and
20  received by the taxpayer or by a member of the
21  taxpayer's unitary business group (including amounts
22  included in gross income pursuant to Sections 951
23  through 964 of the Internal Revenue Code and amounts
24  included in gross income under Section 78 of the
25  Internal Revenue Code) with respect to the stock of
26  the same person to whom the interest was paid,

 

 

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

 

 

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1  or agreement entered into at arm's-length rates
2  and terms and the principal purpose for the
3  payment is not federal or Illinois tax avoidance;
4  or
5  (iv) an item of interest paid, accrued, or
6  incurred, directly or indirectly, to a person if
7  the taxpayer establishes by clear and convincing
8  evidence that the adjustments are unreasonable; or
9  if the taxpayer and the Director agree in writing
10  to the application or use of an alternative method
11  of apportionment under Section 304(f).
12  Nothing in this subsection shall preclude the
13  Director from making any other adjustment
14  otherwise allowed under Section 404 of this Act
15  for any tax year beginning after the effective
16  date of this amendment provided such adjustment is
17  made pursuant to regulation adopted by the
18  Department and such regulations provide methods
19  and standards by which the Department will utilize
20  its authority under Section 404 of this Act;
21  (G-13) An amount equal to the amount of intangible
22  expenses and costs otherwise allowed as a deduction in
23  computing base income, and that were paid, accrued, or
24  incurred, directly or indirectly, (i) for taxable
25  years ending on or after December 31, 2004, to a
26  foreign person who would be a member of the same

 

 

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1  unitary business group but for the fact that the
2  foreign person's business activity outside the United
3  States is 80% or more of that person's total business
4  activity and (ii) for taxable years ending on or after
5  December 31, 2008, to a person who would be a member of
6  the same unitary business group but for the fact that
7  the person is prohibited under Section 1501(a)(27)
8  from being included in the unitary business group
9  because he or she is ordinarily required to apportion
10  business income under different subsections of Section
11  304. The addition modification required by this
12  subparagraph shall be reduced to the extent that
13  dividends were included in base income of the unitary
14  group for the same taxable year and received by the
15  taxpayer or by a member of the taxpayer's unitary
16  business group (including amounts included in gross
17  income pursuant to Sections 951 through 964 of the
18  Internal Revenue Code and amounts included in gross
19  income under Section 78 of the Internal Revenue Code)
20  with respect to the stock of the same person to whom
21  the intangible expenses and costs were directly or
22  indirectly paid, incurred, or accrued. The preceding
23  sentence shall not apply to the extent that the same
24  dividends caused a reduction to the addition
25  modification required under Section 203(c)(2)(G-12) of
26  this Act. As used in this subparagraph, the term

 

 

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

 

 

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

 

 

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1  Department and such regulations provide methods
2  and standards by which the Department will utilize
3  its authority under Section 404 of this Act;
4  (G-14) For taxable years ending on or after
5  December 31, 2008, an amount equal to the amount of
6  insurance premium expenses and costs otherwise allowed
7  as a deduction in computing base income, and that were
8  paid, accrued, or incurred, directly or indirectly, to
9  a person who would be a member of the same unitary
10  business group but for the fact that the person is
11  prohibited under Section 1501(a)(27) from being
12  included in the unitary business group because he or
13  she is ordinarily required to apportion business
14  income under different subsections of Section 304. The
15  addition modification required by this subparagraph
16  shall be reduced to the extent that dividends were
17  included in base income of the unitary group for the
18  same taxable year and received by the taxpayer or by a
19  member of the taxpayer's unitary business group
20  (including amounts included in gross income under
21  Sections 951 through 964 of the Internal Revenue Code
22  and amounts included in gross income under Section 78
23  of the Internal Revenue Code) with respect to the
24  stock of the same person to whom the premiums and costs
25  were directly or indirectly paid, incurred, or
26  accrued. The preceding sentence does not apply to the

 

 

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1  extent that the same dividends caused a reduction to
2  the addition modification required under Section
3  203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
4  Act;
5  (G-15) An amount equal to the credit allowable to
6  the taxpayer under Section 218(a) of this Act,
7  determined without regard to Section 218(c) of this
8  Act;
9  (G-16) For taxable years ending on or after
10  December 31, 2017, an amount equal to the deduction
11  allowed under Section 199 of the Internal Revenue Code
12  for the taxable year;
13  (G-17) the amount that is claimed as a federal
14  deduction when computing the taxpayer's federal
15  taxable income for the taxable year and that is
16  attributable to an endowment gift for which the
17  taxpayer receives a credit under the Illinois Gives
18  Tax Credit Act;
19  and by deducting from the total so obtained the sum of the
20  following amounts:
21  (H) An amount equal to all amounts included in
22  such total pursuant to the provisions of Sections
23  402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
24  of the Internal Revenue Code or included in such total
25  as distributions under the provisions of any
26  retirement or disability plan for employees of any

 

 

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1  governmental agency or unit, or retirement payments to
2  retired partners, which payments are excluded in
3  computing net earnings from self employment by Section
4  1402 of the Internal Revenue Code and regulations
5  adopted pursuant thereto;
6  (I) The valuation limitation amount;
7  (J) An amount equal to the amount of any tax
8  imposed by this Act which was refunded to the taxpayer
9  and included in such total for the taxable year;
10  (K) An amount equal to all amounts included in
11  taxable income as modified by subparagraphs (A), (B),
12  (C), (D), (E), (F) and (G) which are exempt from
13  taxation by this State either by reason of its
14  statutes or Constitution or by reason of the
15  Constitution, treaties or statutes of the United
16  States; provided that, in the case of any statute of
17  this State that exempts income derived from bonds or
18  other obligations from the tax imposed under this Act,
19  the amount exempted shall be the interest net of bond
20  premium amortization;
21  (L) With the exception of any amounts subtracted
22  under subparagraph (K), an amount equal to the sum of
23  all amounts disallowed as deductions by (i) Sections
24  171(a)(2) and 265(a)(2) of the Internal Revenue Code,
25  and all amounts of expenses allocable to interest and
26  disallowed as deductions by Section 265(a)(1) of the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  purposes, to the extent that deduction was added back
2  under subparagraph (F). This subparagraph (X) is
3  exempt from the provisions of Section 250;
4  (Y) For taxable years ending on or after December
5  31, 2011, in the case of a taxpayer who was required to
6  add back any insurance premiums under Section
7  203(c)(2)(G-14), such taxpayer may elect to subtract
8  that part of a reimbursement received from the
9  insurance company equal to the amount of the expense
10  or loss (including expenses incurred by the insurance
11  company) that would have been taken into account as a
12  deduction for federal income tax purposes if the
13  expense or loss had been uninsured. If a taxpayer
14  makes the election provided for by this subparagraph
15  (Y), the insurer to which the premiums were paid must
16  add back to income the amount subtracted by the
17  taxpayer pursuant to this subparagraph (Y). This
18  subparagraph (Y) is exempt from the provisions of
19  Section 250;
20  (Z) For taxable years beginning after December 31,
21  2018 and before January 1, 2026, the amount of excess
22  business loss of the taxpayer disallowed as a
23  deduction by Section 461(l)(1)(B) of the Internal
24  Revenue Code; and
25  (AA) For taxable years beginning on or after
26  January 1, 2023, for any cannabis establishment

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  taxpayer receives a credit under the Illinois Gives
2  Tax Credit Act;
3  and by deducting from the total so obtained the following
4  amounts:
5  (E) The valuation limitation amount;
6  (F) An amount equal to the amount of any tax
7  imposed by this Act which was refunded to the taxpayer
8  and included in such total for the taxable year;
9  (G) An amount equal to all amounts included in
10  taxable income as modified by subparagraphs (A), (B),
11  (C) and (D) which are exempt from taxation by this
12  State either by reason of its statutes or Constitution
13  or by reason of the Constitution, treaties or statutes
14  of the United States; provided that, in the case of any
15  statute of this State that exempts income derived from
16  bonds or other obligations from the tax imposed under
17  this Act, the amount exempted shall be the interest
18  net of bond premium amortization;
19  (H) Any income of the partnership which
20  constitutes personal service income as defined in
21  Section 1348(b)(1) of the Internal Revenue Code (as in
22  effect December 31, 1981) or a reasonable allowance
23  for compensation paid or accrued for services rendered
24  by partners to the partnership, whichever is greater;
25  this subparagraph (H) is exempt from the provisions of
26  Section 250;

 

 

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

 

 

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1  such total which were paid by a corporation which
2  conducts business operations in a River Edge
3  Redevelopment Zone or zones created under the River
4  Edge Redevelopment Zone Act and conducts substantially
5  all of its operations from a River Edge Redevelopment
6  Zone or zones. This subparagraph (K) is exempt from
7  the provisions of Section 250;
8  (L) An amount equal to any contribution made to a
9  job training project established pursuant to the Real
10  Property Tax Increment Allocation Redevelopment Act;
11  (M) An amount equal to those dividends included in
12  such total that were paid by a corporation that
13  conducts business operations in a federally designated
14  Foreign Trade Zone or Sub-Zone and that is designated
15  a High Impact Business located in Illinois; provided
16  that dividends eligible for the deduction provided in
17  subparagraph (K) of paragraph (2) of this subsection
18  shall not be eligible for the deduction provided under
19  this subparagraph (M);
20  (N) An amount equal to the amount of the deduction
21  used to compute the federal income tax credit for
22  restoration of substantial amounts held under claim of
23  right for the taxable year pursuant to Section 1341 of
24  the Internal Revenue Code;
25  (O) For taxable years 2001 and thereafter, for the
26  taxable year in which the bonus depreciation deduction

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  203(d)(2)(D-7) for interest paid, accrued, or
2  incurred, directly or indirectly, to the same person.
3  This subparagraph (R) is exempt from Section 250;
4  (S) An amount equal to the income from intangible
5  property taken into account for the taxable year (net
6  of the deductions allocable thereto) with respect to
7  transactions with (i) a foreign person who would be a
8  member of the taxpayer's unitary business group but
9  for the fact that the foreign person's business
10  activity outside the United States is 80% or more of
11  that person's total business activity and (ii) for
12  taxable years ending on or after December 31, 2008, to
13  a person who would be a member of the same unitary
14  business group but for the fact that the person is
15  prohibited under Section 1501(a)(27) from being
16  included in the unitary business group because he or
17  she is ordinarily required to apportion business
18  income under different subsections of Section 304, but
19  not to exceed the addition modification required to be
20  made for the same taxable year under Section
21  203(d)(2)(D-8) for intangible expenses and costs paid,
22  accrued, or incurred, directly or indirectly, to the
23  same person. This subparagraph (S) is exempt from
24  Section 250;
25  (T) For taxable years ending on or after December
26  31, 2011, in the case of a taxpayer who was required to

 

 

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1  add back any insurance premiums under Section
2  203(d)(2)(D-9), such taxpayer may elect to subtract
3  that part of a reimbursement received from the
4  insurance company equal to the amount of the expense
5  or loss (including expenses incurred by the insurance
6  company) that would have been taken into account as a
7  deduction for federal income tax purposes if the
8  expense or loss had been uninsured. If a taxpayer
9  makes the election provided for by this subparagraph
10  (T), the insurer to which the premiums were paid must
11  add back to income the amount subtracted by the
12  taxpayer pursuant to this subparagraph (T). This
13  subparagraph (T) is exempt from the provisions of
14  Section 250; and
15  (U) For taxable years beginning on or after
16  January 1, 2023, for any cannabis establishment
17  operating in this State and licensed under the
18  Cannabis Regulation and Tax Act or any cannabis
19  cultivation center or medical cannabis dispensing
20  organization operating in this State and licensed
21  under the Compassionate Use of Medical Cannabis
22  Program Act, an amount equal to the deductions that
23  were disallowed under Section 280E of the Internal
24  Revenue Code for the taxable year and that would not be
25  added back under this subsection. The provisions of
26  this subparagraph (U) are exempt from the provisions

 

 

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

 

 

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1  subparagraph (E) of paragraph (2) of subsection (c) for
2  trusts and estates, exceed subtraction modifications, an
3  addition modification must be made under those
4  subparagraphs for any other taxable year to which the
5  taxable income less than zero (net operating loss) is
6  applied under Section 172 of the Internal Revenue Code or
7  under subparagraph (E) of paragraph (2) of this subsection
8  (e) applied in conjunction with Section 172 of the
9  Internal Revenue Code.
10  (2) Special rule. For purposes of paragraph (1) of
11  this subsection, the taxable income properly reportable
12  for federal income tax purposes shall mean:
13  (A) Certain life insurance companies. In the case
14  of a life insurance company subject to the tax imposed
15  by Section 801 of the Internal Revenue Code, life
16  insurance company taxable income, plus the amount of
17  distribution from pre-1984 policyholder surplus
18  accounts as calculated under Section 815a of the
19  Internal Revenue Code;
20  (B) Certain other insurance companies. In the case
21  of mutual insurance companies subject to the tax
22  imposed by Section 831 of the Internal Revenue Code,
23  insurance company taxable income;
24  (C) Regulated investment companies. In the case of
25  a regulated investment company subject to the tax
26  imposed by Section 852 of the Internal Revenue Code,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  such gain was reported for federal income tax purposes
2  for the taxable year, or (ii) the net capital gain for
3  the taxable year, reduced in either case by any amount
4  of such gain included in the amount determined under
5  subsection (a)(2)(F) or (c)(2)(H).
6  (2) Pre-August 1, 1969 appreciation amount.
7  (A) If the fair market value of property referred
8  to in paragraph (1) was readily ascertainable on
9  August 1, 1969, the pre-August 1, 1969 appreciation
10  amount for such property is the lesser of (i) the
11  excess of such fair market value over the taxpayer's
12  basis (for determining gain) for such property on that
13  date (determined under the Internal Revenue Code as in
14  effect on that date), or (ii) the total gain realized
15  and reportable for federal income tax purposes in
16  respect of the sale, exchange or other disposition of
17  such property.
18  (B) If the fair market value of property referred
19  to in paragraph (1) was not readily ascertainable on
20  August 1, 1969, the pre-August 1, 1969 appreciation
21  amount for such property is that amount which bears
22  the same ratio to the total gain reported in respect of
23  the property for federal income tax purposes for the
24  taxable year, as the number of full calendar months in
25  that part of the taxpayer's holding period for the
26  property ending July 31, 1969 bears to the number of

 

 

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1  full calendar months in the taxpayer's entire holding
2  period for the property.
3  (C) The Department shall prescribe such
4  regulations as may be necessary to carry out the
5  purposes of this paragraph.
6  (g) Double deductions. Unless specifically provided
7  otherwise, nothing in this Section shall permit the same item
8  to be deducted more than once.

 

 

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