Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0089 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 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
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0089 Introduced 1/17/2025, by Sen. Mike Porfirio SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/203 35 ILCS 5/203
4	4	35 ILCS 5/203
5	5	Amends the Illinois Income Tax Act. 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".
6	6	LRB104 03295 HLH 13317 b LRB104 03295 HLH 13317 b
7	7	LRB104 03295 HLH 13317 b
8	8	A BILL FOR
9	9	SB0089LRB104 03295 HLH 13317 b SB0089 LRB104 03295 HLH 13317 b
10	10	SB0089 LRB104 03295 HLH 13317 b
11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Income Tax Act is amended by
15	15	5 changing Section 203 as follows:
16	16	6 (35 ILCS 5/203)
17	17	7 Sec. 203. Base income defined.
18	18	8 (a) Individuals.
19	19	9 (1) In general. In the case of an individual, base
20	20	10 income means an amount equal to the taxpayer's adjusted
21	21	11 gross income for the taxable year as modified by paragraph
22	22	12 (2).
23	23	13 (2) Modifications. The adjusted gross income referred
24	24	14 to in paragraph (1) shall be modified by adding thereto
25	25	15 the sum of the following amounts:
26	26	16 (A) An amount equal to all amounts paid or accrued
27	27	17 to the taxpayer as interest or dividends during the
28	28	18 taxable year to the extent excluded from gross income
29	29	19 in the computation of adjusted gross income, except
30	30	20 stock dividends of qualified public utilities
31	31	21 described in Section 305(e) of the Internal Revenue
32	32	22 Code;
33	33	23 (B) An amount equal to the amount of tax imposed by
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0089 Introduced 1/17/2025, by Sen. Mike Porfirio SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/203 35 ILCS 5/203
39	39	35 ILCS 5/203
40	40	Amends the Illinois Income Tax Act. 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".
41	41	LRB104 03295 HLH 13317 b LRB104 03295 HLH 13317 b
42	42	LRB104 03295 HLH 13317 b
43	43	A BILL FOR
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49	49	35 ILCS 5/203
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68	68	1 this Act to the extent deducted from gross income in
69	69	2 the computation of adjusted gross income for the
70	70	3 taxable year;
71	71	4 (C) An amount equal to the amount received during
72	72	5 the taxable year as a recovery or refund of real
73	73	6 property taxes paid with respect to the taxpayer's
74	74	7 principal residence under the Revenue Act of 1939 and
75	75	8 for which a deduction was previously taken under
76	76	9 subparagraph (L) of this paragraph (2) prior to July
77	77	10 1, 1991, the retrospective application date of Article
78	78	11 4 of Public Act 87-17. In the case of multi-unit or
79	79	12 multi-use structures and farm dwellings, the taxes on
80	80	13 the taxpayer's principal residence shall be that
81	81	14 portion of the total taxes for the entire property
82	82	15 which is attributable to such principal residence;
83	83	16 (D) An amount equal to the amount of the capital
84	84	17 gain deduction allowable under the Internal Revenue
85	85	18 Code, to the extent deducted from gross income in the
86	86	19 computation of adjusted gross income;
87	87	20 (D-5) An amount, to the extent not included in
88	88	21 adjusted gross income, equal to the amount of money
89	89	22 withdrawn by the taxpayer in the taxable year from a
90	90	23 medical care savings account and the interest earned
91	91	24 on the account in the taxable year of a withdrawal
92	92	25 pursuant to subsection (b) of Section 20 of the
93	93	26 Medical Care Savings Account Act or subsection (b) of
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104	104	1 Section 20 of the Medical Care Savings Account Act of
105	105	2 2000;
106	106	3 (D-10) For taxable years ending after December 31,
107	107	4 1997, an amount equal to any eligible remediation
108	108	5 costs that the individual deducted in computing
109	109	6 adjusted gross income and for which the individual
110	110	7 claims a credit under subsection (l) of Section 201;
111	111	8 (D-15) For taxable years 2001 and thereafter, an
112	112	9 amount equal to the bonus depreciation deduction taken
113	113	10 on the taxpayer's federal income tax return for the
114	114	11 taxable year under subsection (k) of Section 168 of
115	115	12 the Internal Revenue Code;
116	116	13 (D-16) If the taxpayer sells, transfers, abandons,
117	117	14 or otherwise disposes of property for which the
118	118	15 taxpayer was required in any taxable year to make an
119	119	16 addition modification under subparagraph (D-15), then
120	120	17 an amount equal to the aggregate amount of the
121	121	18 deductions taken in all taxable years under
122	122	19 subparagraph (Z) with respect to that property.
123	123	20 If the taxpayer continues to own property through
124	124	21 the last day of the last tax year for which a
125	125	22 subtraction is allowed with respect to that property
126	126	23 under subparagraph (Z) and for which the taxpayer was
127	127	24 allowed in any taxable year to make a subtraction
128	128	25 modification under subparagraph (Z), then an amount
129	129	26 equal to that subtraction modification.
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140	140	1 The taxpayer is required to make the addition
141	141	2 modification under this subparagraph only once with
142	142	3 respect to any one piece of property;
143	143	4 (D-17) An amount equal to the amount otherwise
144	144	5 allowed as a deduction in computing base income for
145	145	6 interest paid, accrued, or incurred, directly or
146	146	7 indirectly, (i) for taxable years ending on or after
147	147	8 December 31, 2004, to a foreign person who would be a
148	148	9 member of the same unitary business group but for the
149	149	10 fact that foreign person's business activity outside
150	150	11 the United States is 80% or more of the foreign
151	151	12 person's total business activity and (ii) for taxable
152	152	13 years ending on or after December 31, 2008, to a person
153	153	14 who would be a member of the same unitary business
154	154	15 group but for the fact that the person is prohibited
155	155	16 under Section 1501(a)(27) from being included in the
156	156	17 unitary business group because he or she is ordinarily
157	157	18 required to apportion business income under different
158	158	19 subsections of Section 304. The addition modification
159	159	20 required by this subparagraph shall be reduced to the
160	160	21 extent that dividends were included in base income of
161	161	22 the unitary group for the same taxable year and
162	162	23 received by the taxpayer or by a member of the
163	163	24 taxpayer's unitary business group (including amounts
164	164	25 included in gross income under Sections 951 through
165	165	26 964 of the Internal Revenue Code and amounts included
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176	176	1 in gross income under Section 78 of the Internal
177	177	2 Revenue Code) with respect to the stock of the same
178	178	3 person to whom the interest was paid, accrued, or
179	179	4 incurred.
180	180	5 This paragraph shall not apply to the following:
181	181	6 (i) an item of interest paid, accrued, or
182	182	7 incurred, directly or indirectly, to a person who
183	183	8 is subject in a foreign country or state, other
184	184	9 than a state which requires mandatory unitary
185	185	10 reporting, to a tax on or measured by net income
186	186	11 with respect to such interest; or
187	187	12 (ii) an item of interest paid, accrued, or
188	188	13 incurred, directly or indirectly, to a person if
189	189	14 the taxpayer can establish, based on a
190	190	15 preponderance of the evidence, both of the
191	191	16 following:
192	192	17 (a) the person, during the same taxable
193	193	18 year, paid, accrued, or incurred, the interest
194	194	19 to a person that is not a related member, and
195	195	20 (b) the transaction giving rise to the
196	196	21 interest expense between the taxpayer and the
197	197	22 person did not have as a principal purpose the
198	198	23 avoidance of Illinois income tax, and is paid
199	199	24 pursuant to a contract or agreement that
200	200	25 reflects an arm's-length interest rate and
201	201	26 terms; or
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212	212	1 (iii) the taxpayer can establish, based on
213	213	2 clear and convincing evidence, that the interest
214	214	3 paid, accrued, or incurred relates to a contract
215	215	4 or agreement entered into at arm's-length rates
216	216	5 and terms and the principal purpose for the
217	217	6 payment is not federal or Illinois tax avoidance;
218	218	7 or
219	219	8 (iv) an item of interest paid, accrued, or
220	220	9 incurred, directly or indirectly, to a person if
221	221	10 the taxpayer establishes by clear and convincing
222	222	11 evidence that the adjustments are unreasonable; or
223	223	12 if the taxpayer and the Director agree in writing
224	224	13 to the application or use of an alternative method
225	225	14 of apportionment under Section 304(f).
226	226	15 Nothing in this subsection shall preclude the
227	227	16 Director from making any other adjustment
228	228	17 otherwise allowed under Section 404 of this Act
229	229	18 for any tax year beginning after the effective
230	230	19 date of this amendment provided such adjustment is
231	231	20 made pursuant to regulation adopted by the
232	232	21 Department and such regulations provide methods
233	233	22 and standards by which the Department will utilize
234	234	23 its authority under Section 404 of this Act;
235	235	24 (D-18) An amount equal to the amount of intangible
236	236	25 expenses and costs otherwise allowed as a deduction in
237	237	26 computing base income, and that were paid, accrued, or
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248	248	1 incurred, directly or indirectly, (i) for taxable
249	249	2 years ending on or after December 31, 2004, to a
250	250	3 foreign person who would be a member of the same
251	251	4 unitary business group but for the fact that the
252	252	5 foreign person's business activity outside the United
253	253	6 States is 80% or more of that person's total business
254	254	7 activity and (ii) for taxable years ending on or after
255	255	8 December 31, 2008, to a person who would be a member of
256	256	9 the same unitary business group but for the fact that
257	257	10 the person is prohibited under Section 1501(a)(27)
258	258	11 from being included in the unitary business group
259	259	12 because he or she is ordinarily required to apportion
260	260	13 business income under different subsections of Section
261	261	14 304. The addition modification required by this
262	262	15 subparagraph shall be reduced to the extent that
263	263	16 dividends were included in base income of the unitary
264	264	17 group for the same taxable year and received by the
265	265	18 taxpayer or by a member of the taxpayer's unitary
266	266	19 business group (including amounts included in gross
267	267	20 income under Sections 951 through 964 of the Internal
268	268	21 Revenue Code and amounts included in gross income
269	269	22 under Section 78 of the Internal Revenue Code) with
270	270	23 respect to the stock of the same person to whom the
271	271	24 intangible expenses and costs were directly or
272	272	25 indirectly paid, incurred, or accrued. The preceding
273	273	26 sentence does not apply to the extent that the same
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284	284	1 dividends caused a reduction to the addition
285	285	2 modification required under Section 203(a)(2)(D-17) of
286	286	3 this Act. As used in this subparagraph, the term
287	287	4 "intangible expenses and costs" includes (1) expenses,
288	288	5 losses, and costs for, or related to, the direct or
289	289	6 indirect acquisition, use, maintenance or management,
290	290	7 ownership, sale, exchange, or any other disposition of
291	291	8 intangible property; (2) losses incurred, directly or
292	292	9 indirectly, from factoring transactions or discounting
293	293	10 transactions; (3) royalty, patent, technical, and
294	294	11 copyright fees; (4) licensing fees; and (5) other
295	295	12 similar expenses and costs. For purposes of this
296	296	13 subparagraph, "intangible property" includes patents,
297	297	14 patent applications, trade names, trademarks, service
298	298	15 marks, copyrights, mask works, trade secrets, and
299	299	16 similar types of intangible assets.
300	300	17 This paragraph shall not apply to the following:
301	301	18 (i) any item of intangible expenses or costs
302	302	19 paid, accrued, or incurred, directly or
303	303	20 indirectly, from a transaction with a person who
304	304	21 is subject in a foreign country or state, other
305	305	22 than a state which requires mandatory unitary
306	306	23 reporting, to a tax on or measured by net income
307	307	24 with respect to such item; or
308	308	25 (ii) any item of intangible expense or cost
309	309	26 paid, accrued, or incurred, directly or
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320	320	1 indirectly, if the taxpayer can establish, based
321	321	2 on a preponderance of the evidence, both of the
322	322	3 following:
323	323	4 (a) the person during the same taxable
324	324	5 year paid, accrued, or incurred, the
325	325	6 intangible expense or cost to a person that is
326	326	7 not a related member, and
327	327	8 (b) the transaction giving rise to the
328	328	9 intangible expense or cost between the
329	329	10 taxpayer and the person did not have as a
330	330	11 principal purpose the avoidance of Illinois
331	331	12 income tax, and is paid pursuant to a contract
332	332	13 or agreement that reflects arm's-length terms;
333	333	14 or
334	334	15 (iii) any item of intangible expense or cost
335	335	16 paid, accrued, or incurred, directly or
336	336	17 indirectly, from a transaction with a person if
337	337	18 the taxpayer establishes by clear and convincing
338	338	19 evidence, that the adjustments are unreasonable;
339	339	20 or if the taxpayer and the Director agree in
340	340	21 writing to the application or use of an
341	341	22 alternative method of apportionment under Section
342	342	23 304(f);
343	343	24 Nothing in this subsection shall preclude the
344	344	25 Director from making any other adjustment
345	345	26 otherwise allowed under Section 404 of this Act
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356	356	1 for any tax year beginning after the effective
357	357	2 date of this amendment provided such adjustment is
358	358	3 made pursuant to regulation adopted by the
359	359	4 Department and such regulations provide methods
360	360	5 and standards by which the Department will utilize
361	361	6 its authority under Section 404 of this Act;
362	362	7 (D-19) For taxable years ending on or after
363	363	8 December 31, 2008, an amount equal to the amount of
364	364	9 insurance premium expenses and costs otherwise allowed
365	365	10 as a deduction in computing base income, and that were
366	366	11 paid, accrued, or incurred, directly or indirectly, to
367	367	12 a person who would be a member of the same unitary
368	368	13 business group but for the fact that the person is
369	369	14 prohibited under Section 1501(a)(27) from being
370	370	15 included in the unitary business group because he or
371	371	16 she is ordinarily required to apportion business
372	372	17 income under different subsections of Section 304. The
373	373	18 addition modification required by this subparagraph
374	374	19 shall be reduced to the extent that dividends were
375	375	20 included in base income of the unitary group for the
376	376	21 same taxable year and received by the taxpayer or by a
377	377	22 member of the taxpayer's unitary business group
378	378	23 (including amounts included in gross income under
379	379	24 Sections 951 through 964 of the Internal Revenue Code
380	380	25 and amounts included in gross income under Section 78
381	381	26 of the Internal Revenue Code) with respect to the
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392	392	1 stock of the same person to whom the premiums and costs
393	393	2 were directly or indirectly paid, incurred, or
394	394	3 accrued. The preceding sentence does not apply to the
395	395	4 extent that the same dividends caused a reduction to
396	396	5 the addition modification required under Section
397	397	6 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
398	398	7 Act;
399	399	8 (D-20) For taxable years beginning on or after
400	400	9 January 1, 2002 and ending on or before December 31,
401	401	10 2006, in the case of a distribution from a qualified
402	402	11 tuition program under Section 529 of the Internal
403	403	12 Revenue Code, other than (i) a distribution from a
404	404	13 College Savings Pool created under Section 16.5 of the
405	405	14 State Treasurer Act or (ii) a distribution from the
406	406	15 Illinois Prepaid Tuition Trust Fund, an amount equal
407	407	16 to the amount excluded from gross income under Section
408	408	17 529(c)(3)(B). For taxable years beginning on or after
409	409	18 January 1, 2007, in the case of a distribution from a
410	410	19 qualified tuition program under Section 529 of the
411	411	20 Internal Revenue Code, other than (i) a distribution
412	412	21 from a College Savings Pool created under Section 16.5
413	413	22 of the State Treasurer Act, (ii) a distribution from
414	414	23 the Illinois Prepaid Tuition Trust Fund, or (iii) a
415	415	24 distribution from a qualified tuition program under
416	416	25 Section 529 of the Internal Revenue Code that (I)
417	417	26 adopts and determines that its offering materials
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428	428	1 comply with the College Savings Plans Network's
429	429	2 disclosure principles and (II) has made reasonable
430	430	3 efforts to inform in-state residents of the existence
431	431	4 of in-state qualified tuition programs by informing
432	432	5 Illinois residents directly and, where applicable, to
433	433	6 inform financial intermediaries distributing the
434	434	7 program to inform in-state residents of the existence
435	435	8 of in-state qualified tuition programs at least
436	436	9 annually, an amount equal to the amount excluded from
437	437	10 gross income under Section 529(c)(3)(B).
438	438	11 For the purposes of this subparagraph (D-20), a
439	439	12 qualified tuition program has made reasonable efforts
440	440	13 if it makes disclosures (which may use the term
441	441	14 "in-state program" or "in-state plan" and need not
442	442	15 specifically refer to Illinois or its qualified
443	443	16 programs by name) (i) directly to prospective
444	444	17 participants in its offering materials or makes a
445	445	18 public disclosure, such as a website posting; and (ii)
446	446	19 where applicable, to intermediaries selling the
447	447	20 out-of-state program in the same manner that the
448	448	21 out-of-state program distributes its offering
449	449	22 materials;
450	450	23 (D-20.5) For taxable years beginning on or after
451	451	24 January 1, 2018, in the case of a distribution from a
452	452	25 qualified ABLE program under Section 529A of the
453	453	26 Internal Revenue Code, other than a distribution from
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464	464	1 a qualified ABLE program created under Section 16.6 of
465	465	2 the State Treasurer Act, an amount equal to the amount
466	466	3 excluded from gross income under Section 529A(c)(1)(B)
467	467	4 of the Internal Revenue Code;
468	468	5 (D-21) For taxable years beginning on or after
469	469	6 January 1, 2007, in the case of transfer of moneys from
470	470	7 a qualified tuition program under Section 529 of the
471	471	8 Internal Revenue Code that is administered by the
472	472	9 State to an out-of-state program, an amount equal to
473	473	10 the amount of moneys previously deducted from base
474	474	11 income under subsection (a)(2)(Y) of this Section;
475	475	12 (D-21.5) For taxable years beginning on or after
476	476	13 January 1, 2018, in the case of the transfer of moneys
477	477	14 from a qualified tuition program under Section 529 or
478	478	15 a qualified ABLE program under Section 529A of the
479	479	16 Internal Revenue Code that is administered by this
480	480	17 State to an ABLE account established under an
481	481	18 out-of-state ABLE account program, an amount equal to
482	482	19 the contribution component of the transferred amount
483	483	20 that was previously deducted from base income under
484	484	21 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
485	485	22 Section;
486	486	23 (D-22) For taxable years beginning on or after
487	487	24 January 1, 2009, and prior to January 1, 2018, in the
488	488	25 case of a nonqualified withdrawal or refund of moneys
489	489	26 from a qualified tuition program under Section 529 of
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500	500	1 the Internal Revenue Code administered by the State
501	501	2 that is not used for qualified expenses at an eligible
502	502	3 education institution, an amount equal to the
503	503	4 contribution component of the nonqualified withdrawal
504	504	5 or refund that was previously deducted from base
505	505	6 income under subsection (a)(2)(y) of this Section,
506	506	7 provided that the withdrawal or refund did not result
507	507	8 from the beneficiary's death or disability. For
508	508	9 taxable years beginning on or after January 1, 2018:
509	509	10 (1) in the case of a nonqualified withdrawal or
510	510	11 refund, as defined under Section 16.5 of the State
511	511	12 Treasurer Act, of moneys from a qualified tuition
512	512	13 program under Section 529 of the Internal Revenue Code
513	513	14 administered by the State, an amount equal to the
514	514	15 contribution component of the nonqualified withdrawal
515	515	16 or refund that was previously deducted from base
516	516	17 income under subsection (a)(2)(Y) of this Section, and
517	517	18 (2) in the case of a nonqualified withdrawal or refund
518	518	19 from a qualified ABLE program under Section 529A of
519	519	20 the Internal Revenue Code administered by the State
520	520	21 that is not used for qualified disability expenses, an
521	521	22 amount equal to the contribution component of the
522	522	23 nonqualified withdrawal or refund that was previously
523	523	24 deducted from base income under subsection (a)(2)(HH)
524	524	25 of this Section;
525	525	26 (D-23) An amount equal to the credit allowable to
526	526
527	527
528	528
529	529
530	530
531	531	SB0089 - 14 - LRB104 03295 HLH 13317 b
532	532
533	533
534	534	SB0089- 15 -LRB104 03295 HLH 13317 b SB0089 - 15 - LRB104 03295 HLH 13317 b
535	535	SB0089 - 15 - LRB104 03295 HLH 13317 b
536	536	1 the taxpayer under Section 218(a) of this Act,
537	537	2 determined without regard to Section 218(c) of this
538	538	3 Act;
539	539	4 (D-24) For taxable years ending on or after
540	540	5 December 31, 2017, an amount equal to the deduction
541	541	6 allowed under Section 199 of the Internal Revenue Code
542	542	7 for the taxable year;
543	543	8 (D-25) In the case of a resident, an amount equal
544	544	9 to the amount of tax for which a credit is allowed
545	545	10 pursuant to Section 201(p)(7) of this Act;
546	546	11 and by deducting from the total so obtained the sum of the
547	547	12 following amounts:
548	548	13 (E) For taxable years ending before December 31,
549	549	14 2001, any amount included in such total in respect of
550	550	15 any compensation (including but not limited to any
551	551	16 compensation paid or accrued to a serviceman while a
552	552	17 prisoner of war or missing in action) paid to a
553	553	18 resident by reason of being on active duty in the Armed
554	554	19 Forces of the United States and in respect of any
555	555	20 compensation paid or accrued to a resident who as a
556	556	21 governmental employee was a prisoner of war or missing
557	557	22 in action, and in respect of any compensation paid to a
558	558	23 resident in 1971 or thereafter for annual training
559	559	24 performed pursuant to Sections 502 and 503, Title 32,
560	560	25 United States Code as a member of the Illinois
561	561	26 National Guard or, beginning with taxable years ending
562	562
563	563
564	564
565	565
566	566
567	567	SB0089 - 15 - LRB104 03295 HLH 13317 b
568	568
569	569
570	570	SB0089- 16 -LRB104 03295 HLH 13317 b SB0089 - 16 - LRB104 03295 HLH 13317 b
571	571	SB0089 - 16 - LRB104 03295 HLH 13317 b
572	572	1 on or after December 31, 2007, the National Guard of
573	573	2 any other state. For taxable years ending on or after
574	574	3 December 31, 2001, any amount included in such total
575	575	4 in respect of any compensation (including but not
576	576	5 limited to any compensation paid or accrued to a
577	577	6 serviceman while a prisoner of war or missing in
578	578	7 action) paid to a resident by reason of being a member
579	579	8 of any component of the uniformed services Armed
580	580	9 Forces of the United States and in respect of any
581	581	10 compensation paid or accrued to a resident who as a
582	582	11 governmental employee was a prisoner of war or missing
583	583	12 in action, and in respect of any compensation paid to a
584	584	13 resident in 2001 or thereafter by reason of being a
585	585	14 member of the Illinois National Guard or, beginning
586	586	15 with taxable years ending on or after December 31,
587	587	16 2007, the National Guard of any other state. As used in
588	588	17 this subparagraph (E), for taxable years ending before
589	589	18 December 31, 2025, "uniformed services" means the
590	590	19 Armed Forces of the United States. As used in this
591	591	20 subparagraph (E), for taxable years ending on or after
592	592	21 December 31, 2025, "uniformed services" has the
593	593	22 meaning given to that term in 37 U.S.C. 101. The
594	594	23 provisions of this subparagraph (E) are exempt from
595	595	24 the provisions of Section 250;
596	596	25 (F) An amount equal to all amounts included in
597	597	26 such total pursuant to the provisions of Sections
598	598
599	599
600	600
601	601
602	602
603	603	SB0089 - 16 - LRB104 03295 HLH 13317 b
604	604
605	605
606	606	SB0089- 17 -LRB104 03295 HLH 13317 b SB0089 - 17 - LRB104 03295 HLH 13317 b
607	607	SB0089 - 17 - LRB104 03295 HLH 13317 b
608	608	1 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
609	609	2 408 of the Internal Revenue Code, or included in such
610	610	3 total as distributions under the provisions of any
611	611	4 retirement or disability plan for employees of any
612	612	5 governmental agency or unit, or retirement payments to
613	613	6 retired partners, which payments are excluded in
614	614	7 computing net earnings from self employment by Section
615	615	8 1402 of the Internal Revenue Code and regulations
616	616	9 adopted pursuant thereto;
617	617	10 (G) The valuation limitation amount;
618	618	11 (H) An amount equal to the amount of any tax
619	619	12 imposed by this Act which was refunded to the taxpayer
620	620	13 and included in such total for the taxable year;
621	621	14 (I) An amount equal to all amounts included in
622	622	15 such total pursuant to the provisions of Section 111
623	623	16 of the Internal Revenue Code as a recovery of items
624	624	17 previously deducted from adjusted gross income in the
625	625	18 computation of taxable income;
626	626	19 (J) An amount equal to those dividends included in
627	627	20 such total which were paid by a corporation which
628	628	21 conducts business operations in a River Edge
629	629	22 Redevelopment Zone or zones created under the River
630	630	23 Edge Redevelopment Zone Act, and conducts
631	631	24 substantially all of its operations in a River Edge
632	632	25 Redevelopment Zone or zones. This subparagraph (J) is
633	633	26 exempt from the provisions of Section 250;
634	634
635	635
636	636
637	637
638	638
639	639	SB0089 - 17 - LRB104 03295 HLH 13317 b
640	640
641	641
642	642	SB0089- 18 -LRB104 03295 HLH 13317 b SB0089 - 18 - LRB104 03295 HLH 13317 b
643	643	SB0089 - 18 - LRB104 03295 HLH 13317 b
644	644	1 (K) An amount equal to those dividends included in
645	645	2 such total that were paid by a corporation that
646	646	3 conducts business operations in a federally designated
647	647	4 Foreign Trade Zone or Sub-Zone and that is designated
648	648	5 a High Impact Business located in Illinois; provided
649	649	6 that dividends eligible for the deduction provided in
650	650	7 subparagraph (J) of paragraph (2) of this subsection
651	651	8 shall not be eligible for the deduction provided under
652	652	9 this subparagraph (K);
653	653	10 (L) For taxable years ending after December 31,
654	654	11 1983, an amount equal to all social security benefits
655	655	12 and railroad retirement benefits included in such
656	656	13 total pursuant to Sections 72(r) and 86 of the
657	657	14 Internal Revenue Code;
658	658	15 (M) With the exception of any amounts subtracted
659	659	16 under subparagraph (N), an amount equal to the sum of
660	660	17 all amounts disallowed as deductions by (i) Sections
661	661	18 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
662	662	19 and all amounts of expenses allocable to interest and
663	663	20 disallowed as deductions by Section 265(a)(1) of the
664	664	21 Internal Revenue Code; and (ii) for taxable years
665	665	22 ending on or after August 13, 1999, Sections
666	666	23 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
667	667	24 Internal Revenue Code, plus, for taxable years ending
668	668	25 on or after December 31, 2011, Section 45G(e)(3) of
669	669	26 the Internal Revenue Code and, for taxable years
670	670
671	671
672	672
673	673
674	674
675	675	SB0089 - 18 - LRB104 03295 HLH 13317 b
676	676
677	677
678	678	SB0089- 19 -LRB104 03295 HLH 13317 b SB0089 - 19 - LRB104 03295 HLH 13317 b
679	679	SB0089 - 19 - LRB104 03295 HLH 13317 b
680	680	1 ending on or after December 31, 2008, any amount
681	681	2 included in gross income under Section 87 of the
682	682	3 Internal Revenue Code; the provisions of this
683	683	4 subparagraph are exempt from the provisions of Section
684	684	5 250;
685	685	6 (N) An amount equal to all amounts included in
686	686	7 such total which are exempt from taxation by this
687	687	8 State either by reason of its statutes or Constitution
688	688	9 or by reason of the Constitution, treaties or statutes
689	689	10 of the United States; provided that, in the case of any
690	690	11 statute of this State that exempts income derived from
691	691	12 bonds or other obligations from the tax imposed under
692	692	13 this Act, the amount exempted shall be the interest
693	693	14 net of bond premium amortization;
694	694	15 (O) An amount equal to any contribution made to a
695	695	16 job training project established pursuant to the Tax
696	696	17 Increment Allocation Redevelopment Act;
697	697	18 (P) An amount equal to the amount of the deduction
698	698	19 used to compute the federal income tax credit for
699	699	20 restoration of substantial amounts held under claim of
700	700	21 right for the taxable year pursuant to Section 1341 of
701	701	22 the Internal Revenue Code or of any itemized deduction
702	702	23 taken from adjusted gross income in the computation of
703	703	24 taxable income for restoration of substantial amounts
704	704	25 held under claim of right for the taxable year;
705	705	26 (Q) An amount equal to any amounts included in
706	706
707	707
708	708
709	709
710	710
711	711	SB0089 - 19 - LRB104 03295 HLH 13317 b
712	712
713	713
714	714	SB0089- 20 -LRB104 03295 HLH 13317 b SB0089 - 20 - LRB104 03295 HLH 13317 b
715	715	SB0089 - 20 - LRB104 03295 HLH 13317 b
716	716	1 such total, received by the taxpayer as an
717	717	2 acceleration in the payment of life, endowment or
718	718	3 annuity benefits in advance of the time they would
719	719	4 otherwise be payable as an indemnity for a terminal
720	720	5 illness;
721	721	6 (R) An amount equal to the amount of any federal or
722	722	7 State bonus paid to veterans of the Persian Gulf War;
723	723	8 (S) An amount, to the extent included in adjusted
724	724	9 gross income, equal to the amount of a contribution
725	725	10 made in the taxable year on behalf of the taxpayer to a
726	726	11 medical care savings account established under the
727	727	12 Medical Care Savings Account Act or the Medical Care
728	728	13 Savings Account Act of 2000 to the extent the
729	729	14 contribution is accepted by the account administrator
730	730	15 as provided in that Act;
731	731	16 (T) An amount, to the extent included in adjusted
732	732	17 gross income, equal to the amount of interest earned
733	733	18 in the taxable year on a medical care savings account
734	734	19 established under the Medical Care Savings Account Act
735	735	20 or the Medical Care Savings Account Act of 2000 on
736	736	21 behalf of the taxpayer, other than interest added
737	737	22 pursuant to item (D-5) of this paragraph (2);
738	738	23 (U) For one taxable year beginning on or after
739	739	24 January 1, 1994, an amount equal to the total amount of
740	740	25 tax imposed and paid under subsections (a) and (b) of
741	741	26 Section 201 of this Act on grant amounts received by
742	742
743	743
744	744
745	745
746	746
747	747	SB0089 - 20 - LRB104 03295 HLH 13317 b
748	748
749	749
750	750	SB0089- 21 -LRB104 03295 HLH 13317 b SB0089 - 21 - LRB104 03295 HLH 13317 b
751	751	SB0089 - 21 - LRB104 03295 HLH 13317 b
752	752	1 the taxpayer under the Nursing Home Grant Assistance
753	753	2 Act during the taxpayer's taxable years 1992 and 1993;
754	754	3 (V) Beginning with tax years ending on or after
755	755	4 December 31, 1995 and ending with tax years ending on
756	756	5 or before December 31, 2004, an amount equal to the
757	757	6 amount paid by a taxpayer who is a self-employed
758	758	7 taxpayer, a partner of a partnership, or a shareholder
759	759	8 in a Subchapter S corporation for health insurance or
760	760	9 long-term care insurance for that taxpayer or that
761	761	10 taxpayer's spouse or dependents, to the extent that
762	762	11 the amount paid for that health insurance or long-term
763	763	12 care insurance may be deducted under Section 213 of
764	764	13 the Internal Revenue Code, has not been deducted on
765	765	14 the federal income tax return of the taxpayer, and
766	766	15 does not exceed the taxable income attributable to
767	767	16 that taxpayer's income, self-employment income, or
768	768	17 Subchapter S corporation income; except that no
769	769	18 deduction shall be allowed under this item (V) if the
770	770	19 taxpayer is eligible to participate in any health
771	771	20 insurance or long-term care insurance plan of an
772	772	21 employer of the taxpayer or the taxpayer's spouse. The
773	773	22 amount of the health insurance and long-term care
774	774	23 insurance subtracted under this item (V) shall be
775	775	24 determined by multiplying total health insurance and
776	776	25 long-term care insurance premiums paid by the taxpayer
777	777	26 times a number that represents the fractional
778	778
779	779
780	780
781	781
782	782
783	783	SB0089 - 21 - LRB104 03295 HLH 13317 b
784	784
785	785
786	786	SB0089- 22 -LRB104 03295 HLH 13317 b SB0089 - 22 - LRB104 03295 HLH 13317 b
787	787	SB0089 - 22 - LRB104 03295 HLH 13317 b
788	788	1 percentage of eligible medical expenses under Section
789	789	2 213 of the Internal Revenue Code of 1986 not actually
790	790	3 deducted on the taxpayer's federal income tax return;
791	791	4 (W) For taxable years beginning on or after
792	792	5 January 1, 1998, all amounts included in the
793	793	6 taxpayer's federal gross income in the taxable year
794	794	7 from amounts converted from a regular IRA to a Roth
795	795	8 IRA. This paragraph is exempt from the provisions of
796	796	9 Section 250;
797	797	10 (X) For taxable year 1999 and thereafter, an
798	798	11 amount equal to the amount of any (i) distributions,
799	799	12 to the extent includible in gross income for federal
800	800	13 income tax purposes, made to the taxpayer because of
801	801	14 his or her status as a victim of persecution for racial
802	802	15 or religious reasons by Nazi Germany or any other Axis
803	803	16 regime or as an heir of the victim and (ii) items of
804	804	17 income, to the extent includible in gross income for
805	805	18 federal income tax purposes, attributable to, derived
806	806	19 from or in any way related to assets stolen from,
807	807	20 hidden from, or otherwise lost to a victim of
808	808	21 persecution for racial or religious reasons by Nazi
809	809	22 Germany or any other Axis regime immediately prior to,
810	810	23 during, and immediately after World War II, including,
811	811	24 but not limited to, interest on the proceeds
812	812	25 receivable as insurance under policies issued to a
813	813	26 victim of persecution for racial or religious reasons
814	814
815	815
816	816
817	817
818	818
819	819	SB0089 - 22 - LRB104 03295 HLH 13317 b
820	820
821	821
822	822	SB0089- 23 -LRB104 03295 HLH 13317 b SB0089 - 23 - LRB104 03295 HLH 13317 b
823	823	SB0089 - 23 - LRB104 03295 HLH 13317 b
824	824	1 by Nazi Germany or any other Axis regime by European
825	825	2 insurance companies immediately prior to and during
826	826	3 World War II; provided, however, this subtraction from
827	827	4 federal adjusted gross income does not apply to assets
828	828	5 acquired with such assets or with the proceeds from
829	829	6 the sale of such assets; provided, further, this
830	830	7 paragraph shall only apply to a taxpayer who was the
831	831	8 first recipient of such assets after their recovery
832	832	9 and who is a victim of persecution for racial or
833	833	10 religious reasons by Nazi Germany or any other Axis
834	834	11 regime or as an heir of the victim. The amount of and
835	835	12 the eligibility for any public assistance, benefit, or
836	836	13 similar entitlement is not affected by the inclusion
837	837	14 of items (i) and (ii) of this paragraph in gross income
838	838	15 for federal income tax purposes. This paragraph is
839	839	16 exempt from the provisions of Section 250;
840	840	17 (Y) For taxable years beginning on or after
841	841	18 January 1, 2002 and ending on or before December 31,
842	842	19 2004, moneys contributed in the taxable year to a
843	843	20 College Savings Pool account under Section 16.5 of the
844	844	21 State Treasurer Act, except that amounts excluded from
845	845	22 gross income under Section 529(c)(3)(C)(i) of the
846	846	23 Internal Revenue Code shall not be considered moneys
847	847	24 contributed under this subparagraph (Y). For taxable
848	848	25 years beginning on or after January 1, 2005, a maximum
849	849	26 of $10,000 contributed in the taxable year to (i) a
850	850
851	851
852	852
853	853
854	854
855	855	SB0089 - 23 - LRB104 03295 HLH 13317 b
856	856
857	857
858	858	SB0089- 24 -LRB104 03295 HLH 13317 b SB0089 - 24 - LRB104 03295 HLH 13317 b
859	859	SB0089 - 24 - LRB104 03295 HLH 13317 b
860	860	1 College Savings Pool account under Section 16.5 of the
861	861	2 State Treasurer Act or (ii) the Illinois Prepaid
862	862	3 Tuition Trust Fund, except that amounts excluded from
863	863	4 gross income under Section 529(c)(3)(C)(i) of the
864	864	5 Internal Revenue Code shall not be considered moneys
865	865	6 contributed under this subparagraph (Y). For purposes
866	866	7 of this subparagraph, contributions made by an
867	867	8 employer on behalf of an employee, or matching
868	868	9 contributions made by an employee, shall be treated as
869	869	10 made by the employee. This subparagraph (Y) is exempt
870	870	11 from the provisions of Section 250;
871	871	12 (Z) For taxable years 2001 and thereafter, for the
872	872	13 taxable year in which the bonus depreciation deduction
873	873	14 is taken on the taxpayer's federal income tax return
874	874	15 under subsection (k) of Section 168 of the Internal
875	875	16 Revenue Code and for each applicable taxable year
876	876	17 thereafter, an amount equal to "x", where:
877	877	18 (1) "y" equals the amount of the depreciation
878	878	19 deduction taken for the taxable year on the
879	879	20 taxpayer's federal income tax return on property
880	880	21 for which the bonus depreciation deduction was
881	881	22 taken in any year under subsection (k) of Section
882	882	23 168 of the Internal Revenue Code, but not
883	883	24 including the bonus depreciation deduction;
884	884	25 (2) for taxable years ending on or before
885	885	26 December 31, 2005, "x" equals "y" multiplied by 30
886	886
887	887
888	888
889	889
890	890
891	891	SB0089 - 24 - LRB104 03295 HLH 13317 b
892	892
893	893
894	894	SB0089- 25 -LRB104 03295 HLH 13317 b SB0089 - 25 - LRB104 03295 HLH 13317 b
895	895	SB0089 - 25 - LRB104 03295 HLH 13317 b
896	896	1 and then divided by 70 (or "y" multiplied by
897	897	2 0.429); and
898	898	3 (3) for taxable years ending after December
899	899	4 31, 2005:
900	900	5 (i) for property on which a bonus
901	901	6 depreciation deduction of 30% of the adjusted
902	902	7 basis was taken, "x" equals "y" multiplied by
903	903	8 30 and then divided by 70 (or "y" multiplied
904	904	9 by 0.429);
905	905	10 (ii) for property on which a bonus
906	906	11 depreciation deduction of 50% of the adjusted
907	907	12 basis was taken, "x" equals "y" multiplied by
908	908	13 1.0;
909	909	14 (iii) for property on which a bonus
910	910	15 depreciation deduction of 100% of the adjusted
911	911	16 basis was taken in a taxable year ending on or
912	912	17 after December 31, 2021, "x" equals the
913	913	18 depreciation deduction that would be allowed
914	914	19 on that property if the taxpayer had made the
915	915	20 election under Section 168(k)(7) of the
916	916	21 Internal Revenue Code to not claim bonus
917	917	22 depreciation on that property; and
918	918	23 (iv) for property on which a bonus
919	919	24 depreciation deduction of a percentage other
920	920	25 than 30%, 50% or 100% of the adjusted basis
921	921	26 was taken in a taxable year ending on or after
922	922
923	923
924	924
925	925
926	926
927	927	SB0089 - 25 - LRB104 03295 HLH 13317 b
928	928
929	929
930	930	SB0089- 26 -LRB104 03295 HLH 13317 b SB0089 - 26 - LRB104 03295 HLH 13317 b
931	931	SB0089 - 26 - LRB104 03295 HLH 13317 b
932	932	1 December 31, 2021, "x" equals "y" multiplied
933	933	2 by 100 times the percentage bonus depreciation
934	934	3 on the property (that is, 100(bonus%)) and
935	935	4 then divided by 100 times 1 minus the
936	936	5 percentage bonus depreciation on the property
937	937	6 (that is, 100(1-bonus%)).
938	938	7 The aggregate amount deducted under this
939	939	8 subparagraph in all taxable years for any one piece of
940	940	9 property may not exceed the amount of the bonus
941	941	10 depreciation deduction taken on that property on the
942	942	11 taxpayer's federal income tax return under subsection
943	943	12 (k) of Section 168 of the Internal Revenue Code. This
944	944	13 subparagraph (Z) is exempt from the provisions of
945	945	14 Section 250;
946	946	15 (AA) If the taxpayer sells, transfers, abandons,
947	947	16 or otherwise disposes of property for which the
948	948	17 taxpayer was required in any taxable year to make an
949	949	18 addition modification under subparagraph (D-15), then
950	950	19 an amount equal to that addition modification.
951	951	20 If the taxpayer continues to own property through
952	952	21 the last day of the last tax year for which a
953	953	22 subtraction is allowed with respect to that property
954	954	23 under subparagraph (Z) and for which the taxpayer was
955	955	24 required in any taxable year to make an addition
956	956	25 modification under subparagraph (D-15), then an amount
957	957	26 equal to that addition modification.
958	958
959	959
960	960
961	961
962	962
963	963	SB0089 - 26 - LRB104 03295 HLH 13317 b
964	964
965	965
966	966	SB0089- 27 -LRB104 03295 HLH 13317 b SB0089 - 27 - LRB104 03295 HLH 13317 b
967	967	SB0089 - 27 - LRB104 03295 HLH 13317 b
968	968	1 The taxpayer is allowed to take the deduction
969	969	2 under this subparagraph only once with respect to any
970	970	3 one piece of property.
971	971	4 This subparagraph (AA) is exempt from the
972	972	5 provisions of Section 250;
973	973	6 (BB) Any amount included in adjusted gross income,
974	974	7 other than salary, received by a driver in a
975	975	8 ridesharing arrangement using a motor vehicle;
976	976	9 (CC) The amount of (i) any interest income (net of
977	977	10 the deductions allocable thereto) taken into account
978	978	11 for the taxable year with respect to a transaction
979	979	12 with a taxpayer that is required to make an addition
980	980	13 modification with respect to such transaction under
981	981	14 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
982	982	15 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
983	983	16 the amount of that addition modification, and (ii) any
984	984	17 income from intangible property (net of the deductions
985	985	18 allocable thereto) taken into account for the taxable
986	986	19 year with respect to a transaction with a taxpayer
987	987	20 that is required to make an addition modification with
988	988	21 respect to such transaction under Section
989	989	22 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
990	990	23 203(d)(2)(D-8), but not to exceed the amount of that
991	991	24 addition modification. This subparagraph (CC) is
992	992	25 exempt from the provisions of Section 250;
993	993	26 (DD) An amount equal to the interest income taken
994	994
995	995
996	996
997	997
998	998
999	999	SB0089 - 27 - LRB104 03295 HLH 13317 b
1000	1000
1001	1001
1002	1002	SB0089- 28 -LRB104 03295 HLH 13317 b SB0089 - 28 - LRB104 03295 HLH 13317 b
1003	1003	SB0089 - 28 - LRB104 03295 HLH 13317 b
1004	1004	1 into account for the taxable year (net of the
1005	1005	2 deductions allocable thereto) with respect to
1006	1006	3 transactions with (i) a foreign person who would be a
1007	1007	4 member of the taxpayer's unitary business group but
1008	1008	5 for the fact that the foreign person's business
1009	1009	6 activity outside the United States is 80% or more of
1010	1010	7 that person's total business activity and (ii) for
1011	1011	8 taxable years ending on or after December 31, 2008, to
1012	1012	9 a person who would be a member of the same unitary
1013	1013	10 business group but for the fact that the person is
1014	1014	11 prohibited under Section 1501(a)(27) from being
1015	1015	12 included in the unitary business group because he or
1016	1016	13 she is ordinarily required to apportion business
1017	1017	14 income under different subsections of Section 304, but
1018	1018	15 not to exceed the addition modification required to be
1019	1019	16 made for the same taxable year under Section
1020	1020	17 203(a)(2)(D-17) for interest paid, accrued, or
1021	1021	18 incurred, directly or indirectly, to the same person.
1022	1022	19 This subparagraph (DD) is exempt from the provisions
1023	1023	20 of Section 250;
1024	1024	21 (EE) An amount equal to the income from intangible
1025	1025	22 property taken into account for the taxable year (net
1026	1026	23 of the deductions allocable thereto) with respect to
1027	1027	24 transactions with (i) a foreign person who would be a
1028	1028	25 member of the taxpayer's unitary business group but
1029	1029	26 for the fact that the foreign person's business
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035	SB0089 - 28 - LRB104 03295 HLH 13317 b
1036	1036
1037	1037
1038	1038	SB0089- 29 -LRB104 03295 HLH 13317 b SB0089 - 29 - LRB104 03295 HLH 13317 b
1039	1039	SB0089 - 29 - LRB104 03295 HLH 13317 b
1040	1040	1 activity outside the United States is 80% or more of
1041	1041	2 that person's total business activity and (ii) for
1042	1042	3 taxable years ending on or after December 31, 2008, to
1043	1043	4 a person who would be a member of the same unitary
1044	1044	5 business group but for the fact that the person is
1045	1045	6 prohibited under Section 1501(a)(27) from being
1046	1046	7 included in the unitary business group because he or
1047	1047	8 she is ordinarily required to apportion business
1048	1048	9 income under different subsections of Section 304, but
1049	1049	10 not to exceed the addition modification required to be
1050	1050	11 made for the same taxable year under Section
1051	1051	12 203(a)(2)(D-18) for intangible expenses and costs
1052	1052	13 paid, accrued, or incurred, directly or indirectly, to
1053	1053	14 the same foreign person. This subparagraph (EE) is
1054	1054	15 exempt from the provisions of Section 250;
1055	1055	16 (FF) An amount equal to any amount awarded to the
1056	1056	17 taxpayer during the taxable year by the Court of
1057	1057	18 Claims under subsection (c) of Section 8 of the Court
1058	1058	19 of Claims Act for time unjustly served in a State
1059	1059	20 prison. This subparagraph (FF) is exempt from the
1060	1060	21 provisions of Section 250;
1061	1061	22 (GG) For taxable years ending on or after December
1062	1062	23 31, 2011, in the case of a taxpayer who was required to
1063	1063	24 add back any insurance premiums under Section
1064	1064	25 203(a)(2)(D-19), such taxpayer may elect to subtract
1065	1065	26 that part of a reimbursement received from the
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071	SB0089 - 29 - LRB104 03295 HLH 13317 b
1072	1072
1073	1073
1074	1074	SB0089- 30 -LRB104 03295 HLH 13317 b SB0089 - 30 - LRB104 03295 HLH 13317 b
1075	1075	SB0089 - 30 - LRB104 03295 HLH 13317 b
1076	1076	1 insurance company equal to the amount of the expense
1077	1077	2 or loss (including expenses incurred by the insurance
1078	1078	3 company) that would have been taken into account as a
1079	1079	4 deduction for federal income tax purposes if the
1080	1080	5 expense or loss had been uninsured. If a taxpayer
1081	1081	6 makes the election provided for by this subparagraph
1082	1082	7 (GG), the insurer to which the premiums were paid must
1083	1083	8 add back to income the amount subtracted by the
1084	1084	9 taxpayer pursuant to this subparagraph (GG). This
1085	1085	10 subparagraph (GG) is exempt from the provisions of
1086	1086	11 Section 250;
1087	1087	12 (HH) For taxable years beginning on or after
1088	1088	13 January 1, 2018 and prior to January 1, 2028, a maximum
1089	1089	14 of $10,000 contributed in the taxable year to a
1090	1090	15 qualified ABLE account under Section 16.6 of the State
1091	1091	16 Treasurer Act, except that amounts excluded from gross
1092	1092	17 income under Section 529(c)(3)(C)(i) or Section
1093	1093	18 529A(c)(1)(C) of the Internal Revenue Code shall not
1094	1094	19 be considered moneys contributed under this
1095	1095	20 subparagraph (HH). For purposes of this subparagraph
1096	1096	21 (HH), contributions made by an employer on behalf of
1097	1097	22 an employee, or matching contributions made by an
1098	1098	23 employee, shall be treated as made by the employee;
1099	1099	24 (II) For taxable years that begin on or after
1100	1100	25 January 1, 2021 and begin before January 1, 2026, the
1101	1101	26 amount that is included in the taxpayer's federal
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107	SB0089 - 30 - LRB104 03295 HLH 13317 b
1108	1108
1109	1109
1110	1110	SB0089- 31 -LRB104 03295 HLH 13317 b SB0089 - 31 - LRB104 03295 HLH 13317 b
1111	1111	SB0089 - 31 - LRB104 03295 HLH 13317 b
1112	1112	1 adjusted gross income pursuant to Section 61 of the
1113	1113	2 Internal Revenue Code as discharge of indebtedness
1114	1114	3 attributable to student loan forgiveness and that is
1115	1115	4 not excluded from the taxpayer's federal adjusted
1116	1116	5 gross income pursuant to paragraph (5) of subsection
1117	1117	6 (f) of Section 108 of the Internal Revenue Code;
1118	1118	7 (JJ) For taxable years beginning on or after
1119	1119	8 January 1, 2023, for any cannabis establishment
1120	1120	9 operating in this State and licensed under the
1121	1121	10 Cannabis Regulation and Tax Act or any cannabis
1122	1122	11 cultivation center or medical cannabis dispensing
1123	1123	12 organization operating in this State and licensed
1124	1124	13 under the Compassionate Use of Medical Cannabis
1125	1125	14 Program Act, an amount equal to the deductions that
1126	1126	15 were disallowed under Section 280E of the Internal
1127	1127	16 Revenue Code for the taxable year and that would not be
1128	1128	17 added back under this subsection. The provisions of
1129	1129	18 this subparagraph (JJ) are exempt from the provisions
1130	1130	19 of Section 250; and
1131	1131	20 (KK) To the extent includible in gross income for
1132	1132	21 federal income tax purposes, any amount awarded or
1133	1133	22 paid to the taxpayer as a result of a judgment or
1134	1134	23 settlement for fertility fraud as provided in Section
1135	1135	24 15 of the Illinois Fertility Fraud Act, donor
1136	1136	25 fertility fraud as provided in Section 20 of the
1137	1137	26 Illinois Fertility Fraud Act, or similar action in
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142
1143	1143	SB0089 - 31 - LRB104 03295 HLH 13317 b
1144	1144
1145	1145
1146	1146	SB0089- 32 -LRB104 03295 HLH 13317 b SB0089 - 32 - LRB104 03295 HLH 13317 b
1147	1147	SB0089 - 32 - LRB104 03295 HLH 13317 b
1148	1148	1 another state; and
1149	1149	2 (LL) For taxable years beginning on or after
1150	1150	3 January 1, 2026, if the taxpayer is a qualified
1151	1151	4 worker, as defined in the Workforce Development
1152	1152	5 through Charitable Loan Repayment Act, an amount equal
1153	1153	6 to the amount included in the taxpayer's federal
1154	1154	7 adjusted gross income that is attributable to student
1155	1155	8 loan repayment assistance received by the taxpayer
1156	1156	9 during the taxable year from a qualified community
1157	1157	10 foundation under the provisions of the Workforce
1158	1158	11 Development through Through Charitable Loan Repayment
1159	1159	12 Act.
1160	1160	13 This subparagraph (LL) is exempt from the
1161	1161	14 provisions of Section 250; and .
1162	1162	15 (MM) (LL) For taxable years beginning on or after
1163	1163	16 January 1, 2025, if the taxpayer is an eligible
1164	1164	17 resident as defined in the Medical Debt Relief Act, an
1165	1165	18 amount equal to the amount included in the taxpayer's
1166	1166	19 federal adjusted gross income that is attributable to
1167	1167	20 medical debt relief received by the taxpayer during
1168	1168	21 the taxable year from a nonprofit medical debt relief
1169	1169	22 coordinator under the provisions of the Medical Debt
1170	1170	23 Relief Act. This subparagraph (MM) (LL) is exempt from
1171	1171	24 the provisions of Section 250.
1172	1172	25 (b) Corporations.
1173	1173
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178	SB0089 - 32 - LRB104 03295 HLH 13317 b
1179	1179
1180	1180
1181	1181	SB0089- 33 -LRB104 03295 HLH 13317 b SB0089 - 33 - LRB104 03295 HLH 13317 b
1182	1182	SB0089 - 33 - LRB104 03295 HLH 13317 b
1183	1183	1 (1) In general. In the case of a corporation, base
1184	1184	2 income means an amount equal to the taxpayer's taxable
1185	1185	3 income for the taxable year as modified by paragraph (2).
1186	1186	4 (2) Modifications. The taxable income referred to in
1187	1187	5 paragraph (1) shall be modified by adding thereto the sum
1188	1188	6 of the following amounts:
1189	1189	7 (A) An amount equal to all amounts paid or accrued
1190	1190	8 to the taxpayer as interest and all distributions
1191	1191	9 received from regulated investment companies during
1192	1192	10 the taxable year to the extent excluded from gross
1193	1193	11 income in the computation of taxable income;
1194	1194	12 (B) An amount equal to the amount of tax imposed by
1195	1195	13 this Act to the extent deducted from gross income in
1196	1196	14 the computation of taxable income for the taxable
1197	1197	15 year;
1198	1198	16 (C) In the case of a regulated investment company,
1199	1199	17 an amount equal to the excess of (i) the net long-term
1200	1200	18 capital gain for the taxable year, over (ii) the
1201	1201	19 amount of the capital gain dividends designated as
1202	1202	20 such in accordance with Section 852(b)(3)(C) of the
1203	1203	21 Internal Revenue Code and any amount designated under
1204	1204	22 Section 852(b)(3)(D) of the Internal Revenue Code,
1205	1205	23 attributable to the taxable year (this amendatory Act
1206	1206	24 of 1995 (Public Act 89-89) is declarative of existing
1207	1207	25 law and is not a new enactment);
1208	1208	26 (D) The amount of any net operating loss deduction
1209	1209
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214	SB0089 - 33 - LRB104 03295 HLH 13317 b
1215	1215
1216	1216
1217	1217	SB0089- 34 -LRB104 03295 HLH 13317 b SB0089 - 34 - LRB104 03295 HLH 13317 b
1218	1218	SB0089 - 34 - LRB104 03295 HLH 13317 b
1219	1219	1 taken in arriving at taxable income, other than a net
1220	1220	2 operating loss carried forward from a taxable year
1221	1221	3 ending prior to December 31, 1986;
1222	1222	4 (E) For taxable years in which a net operating
1223	1223	5 loss carryback or carryforward from a taxable year
1224	1224	6 ending prior to December 31, 1986 is an element of
1225	1225	7 taxable income under paragraph (1) of subsection (e)
1226	1226	8 or subparagraph (E) of paragraph (2) of subsection
1227	1227	9 (e), the amount by which addition modifications other
1228	1228	10 than those provided by this subparagraph (E) exceeded
1229	1229	11 subtraction modifications in such earlier taxable
1230	1230	12 year, with the following limitations applied in the
1231	1231	13 order that they are listed:
1232	1232	14 (i) the addition modification relating to the
1233	1233	15 net operating loss carried back or forward to the
1234	1234	16 taxable year from any taxable year ending prior to
1235	1235	17 December 31, 1986 shall be reduced by the amount
1236	1236	18 of addition modification under this subparagraph
1237	1237	19 (E) which related to that net operating loss and
1238	1238	20 which was taken into account in calculating the
1239	1239	21 base income of an earlier taxable year, and
1240	1240	22 (ii) the addition modification relating to the
1241	1241	23 net operating loss carried back or forward to the
1242	1242	24 taxable year from any taxable year ending prior to
1243	1243	25 December 31, 1986 shall not exceed the amount of
1244	1244	26 such carryback or carryforward;
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250	SB0089 - 34 - LRB104 03295 HLH 13317 b
1251	1251
1252	1252
1253	1253	SB0089- 35 -LRB104 03295 HLH 13317 b SB0089 - 35 - LRB104 03295 HLH 13317 b
1254	1254	SB0089 - 35 - LRB104 03295 HLH 13317 b
1255	1255	1 For taxable years in which there is a net
1256	1256	2 operating loss carryback or carryforward from more
1257	1257	3 than one other taxable year ending prior to December
1258	1258	4 31, 1986, the addition modification provided in this
1259	1259	5 subparagraph (E) shall be the sum of the amounts
1260	1260	6 computed independently under the preceding provisions
1261	1261	7 of this subparagraph (E) for each such taxable year;
1262	1262	8 (E-5) For taxable years ending after December 31,
1263	1263	9 1997, an amount equal to any eligible remediation
1264	1264	10 costs that the corporation deducted in computing
1265	1265	11 adjusted gross income and for which the corporation
1266	1266	12 claims a credit under subsection (l) of Section 201;
1267	1267	13 (E-10) For taxable years 2001 and thereafter, an
1268	1268	14 amount equal to the bonus depreciation deduction taken
1269	1269	15 on the taxpayer's federal income tax return for the
1270	1270	16 taxable year under subsection (k) of Section 168 of
1271	1271	17 the Internal Revenue Code;
1272	1272	18 (E-11) If the taxpayer sells, transfers, abandons,
1273	1273	19 or otherwise disposes of property for which the
1274	1274	20 taxpayer was required in any taxable year to make an
1275	1275	21 addition modification under subparagraph (E-10), then
1276	1276	22 an amount equal to the aggregate amount of the
1277	1277	23 deductions taken in all taxable years under
1278	1278	24 subparagraph (T) with respect to that property.
1279	1279	25 If the taxpayer continues to own property through
1280	1280	26 the last day of the last tax year for which a
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286	SB0089 - 35 - LRB104 03295 HLH 13317 b
1287	1287
1288	1288
1289	1289	SB0089- 36 -LRB104 03295 HLH 13317 b SB0089 - 36 - LRB104 03295 HLH 13317 b
1290	1290	SB0089 - 36 - LRB104 03295 HLH 13317 b
1291	1291	1 subtraction is allowed with respect to that property
1292	1292	2 under subparagraph (T) and for which the taxpayer was
1293	1293	3 allowed in any taxable year to make a subtraction
1294	1294	4 modification under subparagraph (T), then an amount
1295	1295	5 equal to that subtraction modification.
1296	1296	6 The taxpayer is required to make the addition
1297	1297	7 modification under this subparagraph only once with
1298	1298	8 respect to any one piece of property;
1299	1299	9 (E-12) An amount equal to the amount otherwise
1300	1300	10 allowed as a deduction in computing base income for
1301	1301	11 interest paid, accrued, or incurred, directly or
1302	1302	12 indirectly, (i) for taxable years ending on or after
1303	1303	13 December 31, 2004, to a foreign person who would be a
1304	1304	14 member of the same unitary business group but for the
1305	1305	15 fact the foreign person's business activity outside
1306	1306	16 the United States is 80% or more of the foreign
1307	1307	17 person's total business activity and (ii) for taxable
1308	1308	18 years ending on or after December 31, 2008, to a person
1309	1309	19 who would be a member of the same unitary business
1310	1310	20 group but for the fact that the person is prohibited
1311	1311	21 under Section 1501(a)(27) from being included in the
1312	1312	22 unitary business group because he or she is ordinarily
1313	1313	23 required to apportion business income under different
1314	1314	24 subsections of Section 304. The addition modification
1315	1315	25 required by this subparagraph shall be reduced to the
1316	1316	26 extent that dividends were included in base income of
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322	SB0089 - 36 - LRB104 03295 HLH 13317 b
1323	1323
1324	1324
1325	1325	SB0089- 37 -LRB104 03295 HLH 13317 b SB0089 - 37 - LRB104 03295 HLH 13317 b
1326	1326	SB0089 - 37 - LRB104 03295 HLH 13317 b
1327	1327	1 the unitary group for the same taxable year and
1328	1328	2 received by the taxpayer or by a member of the
1329	1329	3 taxpayer's unitary business group (including amounts
1330	1330	4 included in gross income pursuant to Sections 951
1331	1331	5 through 964 of the Internal Revenue Code and amounts
1332	1332	6 included in gross income under Section 78 of the
1333	1333	7 Internal Revenue Code) with respect to the stock of
1334	1334	8 the same person to whom the interest was paid,
1335	1335	9 accrued, or incurred.
1336	1336	10 This paragraph shall not apply to the following:
1337	1337	11 (i) an item of interest paid, accrued, or
1338	1338	12 incurred, directly or indirectly, to a person who
1339	1339	13 is subject in a foreign country or state, other
1340	1340	14 than a state which requires mandatory unitary
1341	1341	15 reporting, to a tax on or measured by net income
1342	1342	16 with respect to such interest; or
1343	1343	17 (ii) an item of interest paid, accrued, or
1344	1344	18 incurred, directly or indirectly, to a person if
1345	1345	19 the taxpayer can establish, based on a
1346	1346	20 preponderance of the evidence, both of the
1347	1347	21 following:
1348	1348	22 (a) the person, during the same taxable
1349	1349	23 year, paid, accrued, or incurred, the interest
1350	1350	24 to a person that is not a related member, and
1351	1351	25 (b) the transaction giving rise to the
1352	1352	26 interest expense between the taxpayer and the
1353	1353
1354	1354
1355	1355
1356	1356
1357	1357
1358	1358	SB0089 - 37 - LRB104 03295 HLH 13317 b
1359	1359
1360	1360
1361	1361	SB0089- 38 -LRB104 03295 HLH 13317 b SB0089 - 38 - LRB104 03295 HLH 13317 b
1362	1362	SB0089 - 38 - LRB104 03295 HLH 13317 b
1363	1363	1 person did not have as a principal purpose the
1364	1364	2 avoidance of Illinois income tax, and is paid
1365	1365	3 pursuant to a contract or agreement that
1366	1366	4 reflects an arm's-length interest rate and
1367	1367	5 terms; or
1368	1368	6 (iii) the taxpayer can establish, based on
1369	1369	7 clear and convincing evidence, that the interest
1370	1370	8 paid, accrued, or incurred relates to a contract
1371	1371	9 or agreement entered into at arm's-length rates
1372	1372	10 and terms and the principal purpose for the
1373	1373	11 payment is not federal or Illinois tax avoidance;
1374	1374	12 or
1375	1375	13 (iv) an item of interest paid, accrued, or
1376	1376	14 incurred, directly or indirectly, to a person if
1377	1377	15 the taxpayer establishes by clear and convincing
1378	1378	16 evidence that the adjustments are unreasonable; or
1379	1379	17 if the taxpayer and the Director agree in writing
1380	1380	18 to the application or use of an alternative method
1381	1381	19 of apportionment under Section 304(f).
1382	1382	20 Nothing in this subsection shall preclude the
1383	1383	21 Director from making any other adjustment
1384	1384	22 otherwise allowed under Section 404 of this Act
1385	1385	23 for any tax year beginning after the effective
1386	1386	24 date of this amendment provided such adjustment is
1387	1387	25 made pursuant to regulation adopted by the
1388	1388	26 Department and such regulations provide methods
1389	1389
1390	1390
1391	1391
1392	1392
1393	1393
1394	1394	SB0089 - 38 - LRB104 03295 HLH 13317 b
1395	1395
1396	1396
1397	1397	SB0089- 39 -LRB104 03295 HLH 13317 b SB0089 - 39 - LRB104 03295 HLH 13317 b
1398	1398	SB0089 - 39 - LRB104 03295 HLH 13317 b
1399	1399	1 and standards by which the Department will utilize
1400	1400	2 its authority under Section 404 of this Act;
1401	1401	3 (E-13) An amount equal to the amount of intangible
1402	1402	4 expenses and costs otherwise allowed as a deduction in
1403	1403	5 computing base income, and that were paid, accrued, or
1404	1404	6 incurred, directly or indirectly, (i) for taxable
1405	1405	7 years ending on or after December 31, 2004, to a
1406	1406	8 foreign person who would be a member of the same
1407	1407	9 unitary business group but for the fact that the
1408	1408	10 foreign person's business activity outside the United
1409	1409	11 States is 80% or more of that person's total business
1410	1410	12 activity and (ii) for taxable years ending on or after
1411	1411	13 December 31, 2008, to a person who would be a member of
1412	1412	14 the same unitary business group but for the fact that
1413	1413	15 the person is prohibited under Section 1501(a)(27)
1414	1414	16 from being included in the unitary business group
1415	1415	17 because he or she is ordinarily required to apportion
1416	1416	18 business income under different subsections of Section
1417	1417	19 304. The addition modification required by this
1418	1418	20 subparagraph shall be reduced to the extent that
1419	1419	21 dividends were included in base income of the unitary
1420	1420	22 group for the same taxable year and received by the
1421	1421	23 taxpayer or by a member of the taxpayer's unitary
1422	1422	24 business group (including amounts included in gross
1423	1423	25 income pursuant to Sections 951 through 964 of the
1424	1424	26 Internal Revenue Code and amounts included in gross
1425	1425
1426	1426
1427	1427
1428	1428
1429	1429
1430	1430	SB0089 - 39 - LRB104 03295 HLH 13317 b
1431	1431
1432	1432
1433	1433	SB0089- 40 -LRB104 03295 HLH 13317 b SB0089 - 40 - LRB104 03295 HLH 13317 b
1434	1434	SB0089 - 40 - LRB104 03295 HLH 13317 b
1435	1435	1 income under Section 78 of the Internal Revenue Code)
1436	1436	2 with respect to the stock of the same person to whom
1437	1437	3 the intangible expenses and costs were directly or
1438	1438	4 indirectly paid, incurred, or accrued. The preceding
1439	1439	5 sentence shall not apply to the extent that the same
1440	1440	6 dividends caused a reduction to the addition
1441	1441	7 modification required under Section 203(b)(2)(E-12) of
1442	1442	8 this Act. As used in this subparagraph, the term
1443	1443	9 "intangible expenses and costs" includes (1) expenses,
1444	1444	10 losses, and costs for, or related to, the direct or
1445	1445	11 indirect acquisition, use, maintenance or management,
1446	1446	12 ownership, sale, exchange, or any other disposition of
1447	1447	13 intangible property; (2) losses incurred, directly or
1448	1448	14 indirectly, from factoring transactions or discounting
1449	1449	15 transactions; (3) royalty, patent, technical, and
1450	1450	16 copyright fees; (4) licensing fees; and (5) other
1451	1451	17 similar expenses and costs. For purposes of this
1452	1452	18 subparagraph, "intangible property" includes patents,
1453	1453	19 patent applications, trade names, trademarks, service
1454	1454	20 marks, copyrights, mask works, trade secrets, and
1455	1455	21 similar types of intangible assets.
1456	1456	22 This paragraph shall not apply to the following:
1457	1457	23 (i) any item of intangible expenses or costs
1458	1458	24 paid, accrued, or incurred, directly or
1459	1459	25 indirectly, from a transaction with a person who
1460	1460	26 is subject in a foreign country or state, other
1461	1461
1462	1462
1463	1463
1464	1464
1465	1465
1466	1466	SB0089 - 40 - LRB104 03295 HLH 13317 b
1467	1467
1468	1468
1469	1469	SB0089- 41 -LRB104 03295 HLH 13317 b SB0089 - 41 - LRB104 03295 HLH 13317 b
1470	1470	SB0089 - 41 - LRB104 03295 HLH 13317 b
1471	1471	1 than a state which requires mandatory unitary
1472	1472	2 reporting, to a tax on or measured by net income
1473	1473	3 with respect to such item; or
1474	1474	4 (ii) any item of intangible expense or cost
1475	1475	5 paid, accrued, or incurred, directly or
1476	1476	6 indirectly, if the taxpayer can establish, based
1477	1477	7 on a preponderance of the evidence, both of the
1478	1478	8 following:
1479	1479	9 (a) the person during the same taxable
1480	1480	10 year paid, accrued, or incurred, the
1481	1481	11 intangible expense or cost to a person that is
1482	1482	12 not a related member, and
1483	1483	13 (b) the transaction giving rise to the
1484	1484	14 intangible expense or cost between the
1485	1485	15 taxpayer and the person did not have as a
1486	1486	16 principal purpose the avoidance of Illinois
1487	1487	17 income tax, and is paid pursuant to a contract
1488	1488	18 or agreement that reflects arm's-length terms;
1489	1489	19 or
1490	1490	20 (iii) any item of intangible expense or cost
1491	1491	21 paid, accrued, or incurred, directly or
1492	1492	22 indirectly, from a transaction with a person if
1493	1493	23 the taxpayer establishes by clear and convincing
1494	1494	24 evidence, that the adjustments are unreasonable;
1495	1495	25 or if the taxpayer and the Director agree in
1496	1496	26 writing to the application or use of an
1497	1497
1498	1498
1499	1499
1500	1500
1501	1501
1502	1502	SB0089 - 41 - LRB104 03295 HLH 13317 b
1503	1503
1504	1504
1505	1505	SB0089- 42 -LRB104 03295 HLH 13317 b SB0089 - 42 - LRB104 03295 HLH 13317 b
1506	1506	SB0089 - 42 - LRB104 03295 HLH 13317 b
1507	1507	1 alternative method of apportionment under Section
1508	1508	2 304(f);
1509	1509	3 Nothing in this subsection shall preclude the
1510	1510	4 Director from making any other adjustment
1511	1511	5 otherwise allowed under Section 404 of this Act
1512	1512	6 for any tax year beginning after the effective
1513	1513	7 date of this amendment provided such adjustment is
1514	1514	8 made pursuant to regulation adopted by the
1515	1515	9 Department and such regulations provide methods
1516	1516	10 and standards by which the Department will utilize
1517	1517	11 its authority under Section 404 of this Act;
1518	1518	12 (E-14) For taxable years ending on or after
1519	1519	13 December 31, 2008, an amount equal to the amount of
1520	1520	14 insurance premium expenses and costs otherwise allowed
1521	1521	15 as a deduction in computing base income, and that were
1522	1522	16 paid, accrued, or incurred, directly or indirectly, to
1523	1523	17 a person who would be a member of the same unitary
1524	1524	18 business group but for the fact that the person is
1525	1525	19 prohibited under Section 1501(a)(27) from being
1526	1526	20 included in the unitary business group because he or
1527	1527	21 she is ordinarily required to apportion business
1528	1528	22 income under different subsections of Section 304. The
1529	1529	23 addition modification required by this subparagraph
1530	1530	24 shall be reduced to the extent that dividends were
1531	1531	25 included in base income of the unitary group for the
1532	1532	26 same taxable year and received by the taxpayer or by a
1533	1533
1534	1534
1535	1535
1536	1536
1537	1537
1538	1538	SB0089 - 42 - LRB104 03295 HLH 13317 b
1539	1539
1540	1540
1541	1541	SB0089- 43 -LRB104 03295 HLH 13317 b SB0089 - 43 - LRB104 03295 HLH 13317 b
1542	1542	SB0089 - 43 - LRB104 03295 HLH 13317 b
1543	1543	1 member of the taxpayer's unitary business group
1544	1544	2 (including amounts included in gross income under
1545	1545	3 Sections 951 through 964 of the Internal Revenue Code
1546	1546	4 and amounts included in gross income under Section 78
1547	1547	5 of the Internal Revenue Code) with respect to the
1548	1548	6 stock of the same person to whom the premiums and costs
1549	1549	7 were directly or indirectly paid, incurred, or
1550	1550	8 accrued. The preceding sentence does not apply to the
1551	1551	9 extent that the same dividends caused a reduction to
1552	1552	10 the addition modification required under Section
1553	1553	11 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1554	1554	12 Act;
1555	1555	13 (E-15) For taxable years beginning after December
1556	1556	14 31, 2008, any deduction for dividends paid by a
1557	1557	15 captive real estate investment trust that is allowed
1558	1558	16 to a real estate investment trust under Section
1559	1559	17 857(b)(2)(B) of the Internal Revenue Code for
1560	1560	18 dividends paid;
1561	1561	19 (E-16) An amount equal to the credit allowable to
1562	1562	20 the taxpayer under Section 218(a) of this Act,
1563	1563	21 determined without regard to Section 218(c) of this
1564	1564	22 Act;
1565	1565	23 (E-17) For taxable years ending on or after
1566	1566	24 December 31, 2017, an amount equal to the deduction
1567	1567	25 allowed under Section 199 of the Internal Revenue Code
1568	1568	26 for the taxable year;
1569	1569
1570	1570
1571	1571
1572	1572
1573	1573
1574	1574	SB0089 - 43 - LRB104 03295 HLH 13317 b
1575	1575
1576	1576
1577	1577	SB0089- 44 -LRB104 03295 HLH 13317 b SB0089 - 44 - LRB104 03295 HLH 13317 b
1578	1578	SB0089 - 44 - LRB104 03295 HLH 13317 b
1579	1579	1 (E-18) for taxable years beginning after December
1580	1580	2 31, 2018, an amount equal to the deduction allowed
1581	1581	3 under Section 250(a)(1)(A) of the Internal Revenue
1582	1582	4 Code for the taxable year;
1583	1583	5 (E-19) for taxable years ending on or after June
1584	1584	6 30, 2021, an amount equal to the deduction allowed
1585	1585	7 under Section 250(a)(1)(B)(i) of the Internal Revenue
1586	1586	8 Code for the taxable year;
1587	1587	9 (E-20) for taxable years ending on or after June
1588	1588	10 30, 2021, an amount equal to the deduction allowed
1589	1589	11 under Sections 243(e) and 245A(a) of the Internal
1590	1590	12 Revenue Code for the taxable year;
1591	1591	13 (E-21) the amount that is claimed as a federal
1592	1592	14 deduction when computing the taxpayer's federal
1593	1593	15 taxable income for the taxable year and that is
1594	1594	16 attributable to an endowment gift for which the
1595	1595	17 taxpayer receives a credit under the Illinois Gives
1596	1596	18 Tax Credit Act;
1597	1597	19 and by deducting from the total so obtained the sum of the
1598	1598	20 following amounts:
1599	1599	21 (F) An amount equal to the amount of any tax
1600	1600	22 imposed by this Act which was refunded to the taxpayer
1601	1601	23 and included in such total for the taxable year;
1602	1602	24 (G) An amount equal to any amount included in such
1603	1603	25 total under Section 78 of the Internal Revenue Code;
1604	1604	26 (H) In the case of a regulated investment company,
1605	1605
1606	1606
1607	1607
1608	1608
1609	1609
1610	1610	SB0089 - 44 - LRB104 03295 HLH 13317 b
1611	1611
1612	1612
1613	1613	SB0089- 45 -LRB104 03295 HLH 13317 b SB0089 - 45 - LRB104 03295 HLH 13317 b
1614	1614	SB0089 - 45 - LRB104 03295 HLH 13317 b
1615	1615	1 an amount equal to the amount of exempt interest
1616	1616	2 dividends as defined in subsection (b)(5) of Section
1617	1617	3 852 of the Internal Revenue Code, paid to shareholders
1618	1618	4 for the taxable year;
1619	1619	5 (I) With the exception of any amounts subtracted
1620	1620	6 under subparagraph (J), an amount equal to the sum of
1621	1621	7 all amounts disallowed as deductions by (i) Sections
1622	1622	8 171(a)(2) and 265(a)(2) and amounts disallowed as
1623	1623	9 interest expense by Section 291(a)(3) of the Internal
1624	1624	10 Revenue Code, and all amounts of expenses allocable to
1625	1625	11 interest and disallowed as deductions by Section
1626	1626	12 265(a)(1) of the Internal Revenue Code; and (ii) for
1627	1627	13 taxable years ending on or after August 13, 1999,
1628	1628	14 Sections 171(a)(2), 265, 280C, 291(a)(3), and
1629	1629	15 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
1630	1630	16 for tax years ending on or after December 31, 2011,
1631	1631	17 amounts disallowed as deductions by Section 45G(e)(3)
1632	1632	18 of the Internal Revenue Code and, for taxable years
1633	1633	19 ending on or after December 31, 2008, any amount
1634	1634	20 included in gross income under Section 87 of the
1635	1635	21 Internal Revenue Code and the policyholders' share of
1636	1636	22 tax-exempt interest of a life insurance company under
1637	1637	23 Section 807(a)(2)(B) of the Internal Revenue Code (in
1638	1638	24 the case of a life insurance company with gross income
1639	1639	25 from a decrease in reserves for the tax year) or
1640	1640	26 Section 807(b)(1)(B) of the Internal Revenue Code (in
1641	1641
1642	1642
1643	1643
1644	1644
1645	1645
1646	1646	SB0089 - 45 - LRB104 03295 HLH 13317 b
1647	1647
1648	1648
1649	1649	SB0089- 46 -LRB104 03295 HLH 13317 b SB0089 - 46 - LRB104 03295 HLH 13317 b
1650	1650	SB0089 - 46 - LRB104 03295 HLH 13317 b
1651	1651	1 the case of a life insurance company allowed a
1652	1652	2 deduction for an increase in reserves for the tax
1653	1653	3 year); the provisions of this subparagraph are exempt
1654	1654	4 from the provisions of Section 250;
1655	1655	5 (J) An amount equal to all amounts included in
1656	1656	6 such total which are exempt from taxation by this
1657	1657	7 State either by reason of its statutes or Constitution
1658	1658	8 or by reason of the Constitution, treaties or statutes
1659	1659	9 of the United States; provided that, in the case of any
1660	1660	10 statute of this State that exempts income derived from
1661	1661	11 bonds or other obligations from the tax imposed under
1662	1662	12 this Act, the amount exempted shall be the interest
1663	1663	13 net of bond premium amortization;
1664	1664	14 (K) An amount equal to those dividends included in
1665	1665	15 such total which were paid by a corporation which
1666	1666	16 conducts business operations in a River Edge
1667	1667	17 Redevelopment Zone or zones created under the River
1668	1668	18 Edge Redevelopment Zone Act and conducts substantially
1669	1669	19 all of its operations in a River Edge Redevelopment
1670	1670	20 Zone or zones. This subparagraph (K) is exempt from
1671	1671	21 the provisions of Section 250;
1672	1672	22 (L) An amount equal to those dividends included in
1673	1673	23 such total that were paid by a corporation that
1674	1674	24 conducts business operations in a federally designated
1675	1675	25 Foreign Trade Zone or Sub-Zone and that is designated
1676	1676	26 a High Impact Business located in Illinois; provided
1677	1677
1678	1678
1679	1679
1680	1680
1681	1681
1682	1682	SB0089 - 46 - LRB104 03295 HLH 13317 b
1683	1683
1684	1684
1685	1685	SB0089- 47 -LRB104 03295 HLH 13317 b SB0089 - 47 - LRB104 03295 HLH 13317 b
1686	1686	SB0089 - 47 - LRB104 03295 HLH 13317 b
1687	1687	1 that dividends eligible for the deduction provided in
1688	1688	2 subparagraph (K) of paragraph 2 of this subsection
1689	1689	3 shall not be eligible for the deduction provided under
1690	1690	4 this subparagraph (L);
1691	1691	5 (M) For any taxpayer that is a financial
1692	1692	6 organization within the meaning of Section 304(c) of
1693	1693	7 this Act, an amount included in such total as interest
1694	1694	8 income from a loan or loans made by such taxpayer to a
1695	1695	9 borrower, to the extent that such a loan is secured by
1696	1696	10 property which is eligible for the River Edge
1697	1697	11 Redevelopment Zone Investment Credit. To determine the
1698	1698	12 portion of a loan or loans that is secured by property
1699	1699	13 eligible for a Section 201(f) investment credit to the
1700	1700	14 borrower, the entire principal amount of the loan or
1701	1701	15 loans between the taxpayer and the borrower should be
1702	1702	16 divided into the basis of the Section 201(f)
1703	1703	17 investment credit property which secures the loan or
1704	1704	18 loans, using for this purpose the original basis of
1705	1705	19 such property on the date that it was placed in service
1706	1706	20 in the River Edge Redevelopment Zone. The subtraction
1707	1707	21 modification available to the taxpayer in any year
1708	1708	22 under this subsection shall be that portion of the
1709	1709	23 total interest paid by the borrower with respect to
1710	1710	24 such loan attributable to the eligible property as
1711	1711	25 calculated under the previous sentence. This
1712	1712	26 subparagraph (M) is exempt from the provisions of
1713	1713
1714	1714
1715	1715
1716	1716
1717	1717
1718	1718	SB0089 - 47 - LRB104 03295 HLH 13317 b
1719	1719
1720	1720
1721	1721	SB0089- 48 -LRB104 03295 HLH 13317 b SB0089 - 48 - LRB104 03295 HLH 13317 b
1722	1722	SB0089 - 48 - LRB104 03295 HLH 13317 b
1723	1723	1 Section 250;
1724	1724	2 (M-1) For any taxpayer that is a financial
1725	1725	3 organization within the meaning of Section 304(c) of
1726	1726	4 this Act, an amount included in such total as interest
1727	1727	5 income from a loan or loans made by such taxpayer to a
1728	1728	6 borrower, to the extent that such a loan is secured by
1729	1729	7 property which is eligible for the High Impact
1730	1730	8 Business Investment Credit. To determine the portion
1731	1731	9 of a loan or loans that is secured by property eligible
1732	1732	10 for a Section 201(h) investment credit to the
1733	1733	11 borrower, the entire principal amount of the loan or
1734	1734	12 loans between the taxpayer and the borrower should be
1735	1735	13 divided into the basis of the Section 201(h)
1736	1736	14 investment credit property which secures the loan or
1737	1737	15 loans, using for this purpose the original basis of
1738	1738	16 such property on the date that it was placed in service
1739	1739	17 in a federally designated Foreign Trade Zone or
1740	1740	18 Sub-Zone located in Illinois. No taxpayer that is
1741	1741	19 eligible for the deduction provided in subparagraph
1742	1742	20 (M) of paragraph (2) of this subsection shall be
1743	1743	21 eligible for the deduction provided under this
1744	1744	22 subparagraph (M-1). The subtraction modification
1745	1745	23 available to taxpayers in any year under this
1746	1746	24 subsection shall be that portion of the total interest
1747	1747	25 paid by the borrower with respect to such loan
1748	1748	26 attributable to the eligible property as calculated
1749	1749
1750	1750
1751	1751
1752	1752
1753	1753
1754	1754	SB0089 - 48 - LRB104 03295 HLH 13317 b
1755	1755
1756	1756
1757	1757	SB0089- 49 -LRB104 03295 HLH 13317 b SB0089 - 49 - LRB104 03295 HLH 13317 b
1758	1758	SB0089 - 49 - LRB104 03295 HLH 13317 b
1759	1759	1 under the previous sentence;
1760	1760	2 (N) Two times any contribution made during the
1761	1761	3 taxable year to a designated zone organization to the
1762	1762	4 extent that the contribution (i) qualifies as a
1763	1763	5 charitable contribution under subsection (c) of
1764	1764	6 Section 170 of the Internal Revenue Code and (ii)
1765	1765	7 must, by its terms, be used for a project approved by
1766	1766	8 the Department of Commerce and Economic Opportunity
1767	1767	9 under Section 11 of the Illinois Enterprise Zone Act
1768	1768	10 or under Section 10-10 of the River Edge Redevelopment
1769	1769	11 Zone Act. This subparagraph (N) is exempt from the
1770	1770	12 provisions of Section 250;
1771	1771	13 (O) An amount equal to: (i) 85% for taxable years
1772	1772	14 ending on or before December 31, 1992, or, a
1773	1773	15 percentage equal to the percentage allowable under
1774	1774	16 Section 243(a)(1) of the Internal Revenue Code of 1986
1775	1775	17 for taxable years ending after December 31, 1992, of
1776	1776	18 the amount by which dividends included in taxable
1777	1777	19 income and received from a corporation that is not
1778	1778	20 created or organized under the laws of the United
1779	1779	21 States or any state or political subdivision thereof,
1780	1780	22 including, for taxable years ending on or after
1781	1781	23 December 31, 1988, dividends received or deemed
1782	1782	24 received or paid or deemed paid under Sections 951
1783	1783	25 through 965 of the Internal Revenue Code, exceed the
1784	1784	26 amount of the modification provided under subparagraph
1785	1785
1786	1786
1787	1787
1788	1788
1789	1789
1790	1790	SB0089 - 49 - LRB104 03295 HLH 13317 b
1791	1791
1792	1792
1793	1793	SB0089- 50 -LRB104 03295 HLH 13317 b SB0089 - 50 - LRB104 03295 HLH 13317 b
1794	1794	SB0089 - 50 - LRB104 03295 HLH 13317 b
1795	1795	1 (G) of paragraph (2) of this subsection (b) which is
1796	1796	2 related to such dividends, and including, for taxable
1797	1797	3 years ending on or after December 31, 2008, dividends
1798	1798	4 received from a captive real estate investment trust;
1799	1799	5 plus (ii) 100% of the amount by which dividends,
1800	1800	6 included in taxable income and received, including,
1801	1801	7 for taxable years ending on or after December 31,
1802	1802	8 1988, dividends received or deemed received or paid or
1803	1803	9 deemed paid under Sections 951 through 964 of the
1804	1804	10 Internal Revenue Code and including, for taxable years
1805	1805	11 ending on or after December 31, 2008, dividends
1806	1806	12 received from a captive real estate investment trust,
1807	1807	13 from any such corporation specified in clause (i) that
1808	1808	14 would but for the provisions of Section 1504(b)(3) of
1809	1809	15 the Internal Revenue Code be treated as a member of the
1810	1810	16 affiliated group which includes the dividend
1811	1811	17 recipient, exceed the amount of the modification
1812	1812	18 provided under subparagraph (G) of paragraph (2) of
1813	1813	19 this subsection (b) which is related to such
1814	1814	20 dividends. For taxable years ending on or after June
1815	1815	21 30, 2021, (i) for purposes of this subparagraph, the
1816	1816	22 term "dividend" does not include any amount treated as
1817	1817	23 a dividend under Section 1248 of the Internal Revenue
1818	1818	24 Code, and (ii) this subparagraph shall not apply to
1819	1819	25 dividends for which a deduction is allowed under
1820	1820	26 Section 245(a) of the Internal Revenue Code. This
1821	1821
1822	1822
1823	1823
1824	1824
1825	1825
1826	1826	SB0089 - 50 - LRB104 03295 HLH 13317 b
1827	1827
1828	1828
1829	1829	SB0089- 51 -LRB104 03295 HLH 13317 b SB0089 - 51 - LRB104 03295 HLH 13317 b
1830	1830	SB0089 - 51 - LRB104 03295 HLH 13317 b
1831	1831	1 subparagraph (O) is exempt from the provisions of
1832	1832	2 Section 250 of this Act;
1833	1833	3 (P) An amount equal to any contribution made to a
1834	1834	4 job training project established pursuant to the Tax
1835	1835	5 Increment Allocation Redevelopment Act;
1836	1836	6 (Q) An amount equal to the amount of the deduction
1837	1837	7 used to compute the federal income tax credit for
1838	1838	8 restoration of substantial amounts held under claim of
1839	1839	9 right for the taxable year pursuant to Section 1341 of
1840	1840	10 the Internal Revenue Code;
1841	1841	11 (R) On and after July 20, 1999, in the case of an
1842	1842	12 attorney-in-fact with respect to whom an interinsurer
1843	1843	13 or a reciprocal insurer has made the election under
1844	1844	14 Section 835 of the Internal Revenue Code, 26 U.S.C.
1845	1845	15 835, an amount equal to the excess, if any, of the
1846	1846	16 amounts paid or incurred by that interinsurer or
1847	1847	17 reciprocal insurer in the taxable year to the
1848	1848	18 attorney-in-fact over the deduction allowed to that
1849	1849	19 interinsurer or reciprocal insurer with respect to the
1850	1850	20 attorney-in-fact under Section 835(b) of the Internal
1851	1851	21 Revenue Code for the taxable year; the provisions of
1852	1852	22 this subparagraph are exempt from the provisions of
1853	1853	23 Section 250;
1854	1854	24 (S) For taxable years ending on or after December
1855	1855	25 31, 1997, in the case of a Subchapter S corporation, an
1856	1856	26 amount equal to all amounts of income allocable to a
1857	1857
1858	1858
1859	1859
1860	1860
1861	1861
1862	1862	SB0089 - 51 - LRB104 03295 HLH 13317 b
1863	1863
1864	1864
1865	1865	SB0089- 52 -LRB104 03295 HLH 13317 b SB0089 - 52 - LRB104 03295 HLH 13317 b
1866	1866	SB0089 - 52 - LRB104 03295 HLH 13317 b
1867	1867	1 shareholder subject to the Personal Property Tax
1868	1868	2 Replacement Income Tax imposed by subsections (c) and
1869	1869	3 (d) of Section 201 of this Act, including amounts
1870	1870	4 allocable to organizations exempt from federal income
1871	1871	5 tax by reason of Section 501(a) of the Internal
1872	1872	6 Revenue Code. This subparagraph (S) is exempt from the
1873	1873	7 provisions of Section 250;
1874	1874	8 (T) For taxable years 2001 and thereafter, for the
1875	1875	9 taxable year in which the bonus depreciation deduction
1876	1876	10 is taken on the taxpayer's federal income tax return
1877	1877	11 under subsection (k) of Section 168 of the Internal
1878	1878	12 Revenue Code and for each applicable taxable year
1879	1879	13 thereafter, an amount equal to "x", where:
1880	1880	14 (1) "y" equals the amount of the depreciation
1881	1881	15 deduction taken for the taxable year on the
1882	1882	16 taxpayer's federal income tax return on property
1883	1883	17 for which the bonus depreciation deduction was
1884	1884	18 taken in any year under subsection (k) of Section
1885	1885	19 168 of the Internal Revenue Code, but not
1886	1886	20 including the bonus depreciation deduction;
1887	1887	21 (2) for taxable years ending on or before
1888	1888	22 December 31, 2005, "x" equals "y" multiplied by 30
1889	1889	23 and then divided by 70 (or "y" multiplied by
1890	1890	24 0.429); and
1891	1891	25 (3) for taxable years ending after December
1892	1892	26 31, 2005:
1893	1893
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898	SB0089 - 52 - LRB104 03295 HLH 13317 b
1899	1899
1900	1900
1901	1901	SB0089- 53 -LRB104 03295 HLH 13317 b SB0089 - 53 - LRB104 03295 HLH 13317 b
1902	1902	SB0089 - 53 - LRB104 03295 HLH 13317 b
1903	1903	1 (i) for property on which a bonus
1904	1904	2 depreciation deduction of 30% of the adjusted
1905	1905	3 basis was taken, "x" equals "y" multiplied by
1906	1906	4 30 and then divided by 70 (or "y" multiplied
1907	1907	5 by 0.429);
1908	1908	6 (ii) for property on which a bonus
1909	1909	7 depreciation deduction of 50% of the adjusted
1910	1910	8 basis was taken, "x" equals "y" multiplied by
1911	1911	9 1.0;
1912	1912	10 (iii) for property on which a bonus
1913	1913	11 depreciation deduction of 100% of the adjusted
1914	1914	12 basis was taken in a taxable year ending on or
1915	1915	13 after December 31, 2021, "x" equals the
1916	1916	14 depreciation deduction that would be allowed
1917	1917	15 on that property if the taxpayer had made the
1918	1918	16 election under Section 168(k)(7) of the
1919	1919	17 Internal Revenue Code to not claim bonus
1920	1920	18 depreciation on that property; and
1921	1921	19 (iv) for property on which a bonus
1922	1922	20 depreciation deduction of a percentage other
1923	1923	21 than 30%, 50% or 100% of the adjusted basis
1924	1924	22 was taken in a taxable year ending on or after
1925	1925	23 December 31, 2021, "x" equals "y" multiplied
1926	1926	24 by 100 times the percentage bonus depreciation
1927	1927	25 on the property (that is, 100(bonus%)) and
1928	1928	26 then divided by 100 times 1 minus the
1929	1929
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934	SB0089 - 53 - LRB104 03295 HLH 13317 b
1935	1935
1936	1936
1937	1937	SB0089- 54 -LRB104 03295 HLH 13317 b SB0089 - 54 - LRB104 03295 HLH 13317 b
1938	1938	SB0089 - 54 - LRB104 03295 HLH 13317 b
1939	1939	1 percentage bonus depreciation on the property
1940	1940	2 (that is, 100(1-bonus%)).
1941	1941	3 The aggregate amount deducted under this
1942	1942	4 subparagraph in all taxable years for any one piece of
1943	1943	5 property may not exceed the amount of the bonus
1944	1944	6 depreciation deduction taken on that property on the
1945	1945	7 taxpayer's federal income tax return under subsection
1946	1946	8 (k) of Section 168 of the Internal Revenue Code. This
1947	1947	9 subparagraph (T) is exempt from the provisions of
1948	1948	10 Section 250;
1949	1949	11 (U) If the taxpayer sells, transfers, abandons, or
1950	1950	12 otherwise disposes of property for which the taxpayer
1951	1951	13 was required in any taxable year to make an addition
1952	1952	14 modification under subparagraph (E-10), then an amount
1953	1953	15 equal to that addition modification.
1954	1954	16 If the taxpayer continues to own property through
1955	1955	17 the last day of the last tax year for which a
1956	1956	18 subtraction is allowed with respect to that property
1957	1957	19 under subparagraph (T) and for which the taxpayer was
1958	1958	20 required in any taxable year to make an addition
1959	1959	21 modification under subparagraph (E-10), then an amount
1960	1960	22 equal to that addition modification.
1961	1961	23 The taxpayer is allowed to take the deduction
1962	1962	24 under this subparagraph only once with respect to any
1963	1963	25 one piece of property.
1964	1964	26 This subparagraph (U) is exempt from the
1965	1965
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970	SB0089 - 54 - LRB104 03295 HLH 13317 b
1971	1971
1972	1972
1973	1973	SB0089- 55 -LRB104 03295 HLH 13317 b SB0089 - 55 - LRB104 03295 HLH 13317 b
1974	1974	SB0089 - 55 - LRB104 03295 HLH 13317 b
1975	1975	1 provisions of Section 250;
1976	1976	2 (V) The amount of: (i) any interest income (net of
1977	1977	3 the deductions allocable thereto) taken into account
1978	1978	4 for the taxable year with respect to a transaction
1979	1979	5 with a taxpayer that is required to make an addition
1980	1980	6 modification with respect to such transaction under
1981	1981	7 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1982	1982	8 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1983	1983	9 the amount of such addition modification, (ii) any
1984	1984	10 income from intangible property (net of the deductions
1985	1985	11 allocable thereto) taken into account for the taxable
1986	1986	12 year with respect to a transaction with a taxpayer
1987	1987	13 that is required to make an addition modification with
1988	1988	14 respect to such transaction under Section
1989	1989	15 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
1990	1990	16 203(d)(2)(D-8), but not to exceed the amount of such
1991	1991	17 addition modification, and (iii) any insurance premium
1992	1992	18 income (net of deductions allocable thereto) taken
1993	1993	19 into account for the taxable year with respect to a
1994	1994	20 transaction with a taxpayer that is required to make
1995	1995	21 an addition modification with respect to such
1996	1996	22 transaction under Section 203(a)(2)(D-19), Section
1997	1997	23 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
1998	1998	24 203(d)(2)(D-9), but not to exceed the amount of that
1999	1999	25 addition modification. This subparagraph (V) is exempt
2000	2000	26 from the provisions of Section 250;
2001	2001
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006	SB0089 - 55 - LRB104 03295 HLH 13317 b
2007	2007
2008	2008
2009	2009	SB0089- 56 -LRB104 03295 HLH 13317 b SB0089 - 56 - LRB104 03295 HLH 13317 b
2010	2010	SB0089 - 56 - LRB104 03295 HLH 13317 b
2011	2011	1 (W) An amount equal to the interest income taken
2012	2012	2 into account for the taxable year (net of the
2013	2013	3 deductions allocable thereto) with respect to
2014	2014	4 transactions with (i) a foreign person who would be a
2015	2015	5 member of the taxpayer's unitary business group but
2016	2016	6 for the fact that the foreign person's business
2017	2017	7 activity outside the United States is 80% or more of
2018	2018	8 that person's total business activity and (ii) for
2019	2019	9 taxable years ending on or after December 31, 2008, to
2020	2020	10 a person who would be a member of the same unitary
2021	2021	11 business group but for the fact that the person is
2022	2022	12 prohibited under Section 1501(a)(27) from being
2023	2023	13 included in the unitary business group because he or
2024	2024	14 she is ordinarily required to apportion business
2025	2025	15 income under different subsections of Section 304, but
2026	2026	16 not to exceed the addition modification required to be
2027	2027	17 made for the same taxable year under Section
2028	2028	18 203(b)(2)(E-12) for interest paid, accrued, or
2029	2029	19 incurred, directly or indirectly, to the same person.
2030	2030	20 This subparagraph (W) is exempt from the provisions of
2031	2031	21 Section 250;
2032	2032	22 (X) An amount equal to the income from intangible
2033	2033	23 property taken into account for the taxable year (net
2034	2034	24 of the deductions allocable thereto) with respect to
2035	2035	25 transactions with (i) a foreign person who would be a
2036	2036	26 member of the taxpayer's unitary business group but
2037	2037
2038	2038
2039	2039
2040	2040
2041	2041
2042	2042	SB0089 - 56 - LRB104 03295 HLH 13317 b
2043	2043
2044	2044
2045	2045	SB0089- 57 -LRB104 03295 HLH 13317 b SB0089 - 57 - LRB104 03295 HLH 13317 b
2046	2046	SB0089 - 57 - LRB104 03295 HLH 13317 b
2047	2047	1 for the fact that the foreign person's business
2048	2048	2 activity outside the United States is 80% or more of
2049	2049	3 that person's total business activity and (ii) for
2050	2050	4 taxable years ending on or after December 31, 2008, to
2051	2051	5 a person who would be a member of the same unitary
2052	2052	6 business group but for the fact that the person is
2053	2053	7 prohibited under Section 1501(a)(27) from being
2054	2054	8 included in the unitary business group because he or
2055	2055	9 she is ordinarily required to apportion business
2056	2056	10 income under different subsections of Section 304, but
2057	2057	11 not to exceed the addition modification required to be
2058	2058	12 made for the same taxable year under Section
2059	2059	13 203(b)(2)(E-13) for intangible expenses and costs
2060	2060	14 paid, accrued, or incurred, directly or indirectly, to
2061	2061	15 the same foreign person. This subparagraph (X) is
2062	2062	16 exempt from the provisions of Section 250;
2063	2063	17 (Y) For taxable years ending on or after December
2064	2064	18 31, 2011, in the case of a taxpayer who was required to
2065	2065	19 add back any insurance premiums under Section
2066	2066	20 203(b)(2)(E-14), such taxpayer may elect to subtract
2067	2067	21 that part of a reimbursement received from the
2068	2068	22 insurance company equal to the amount of the expense
2069	2069	23 or loss (including expenses incurred by the insurance
2070	2070	24 company) that would have been taken into account as a
2071	2071	25 deduction for federal income tax purposes if the
2072	2072	26 expense or loss had been uninsured. If a taxpayer
2073	2073
2074	2074
2075	2075
2076	2076
2077	2077
2078	2078	SB0089 - 57 - LRB104 03295 HLH 13317 b
2079	2079
2080	2080
2081	2081	SB0089- 58 -LRB104 03295 HLH 13317 b SB0089 - 58 - LRB104 03295 HLH 13317 b
2082	2082	SB0089 - 58 - LRB104 03295 HLH 13317 b
2083	2083	1 makes the election provided for by this subparagraph
2084	2084	2 (Y), the insurer to which the premiums were paid must
2085	2085	3 add back to income the amount subtracted by the
2086	2086	4 taxpayer pursuant to this subparagraph (Y). This
2087	2087	5 subparagraph (Y) is exempt from the provisions of
2088	2088	6 Section 250;
2089	2089	7 (Z) The difference between the nondeductible
2090	2090	8 controlled foreign corporation dividends under Section
2091	2091	9 965(e)(3) of the Internal Revenue Code over the
2092	2092	10 taxable income of the taxpayer, computed without
2093	2093	11 regard to Section 965(e)(2)(A) of the Internal Revenue
2094	2094	12 Code, and without regard to any net operating loss
2095	2095	13 deduction. This subparagraph (Z) is exempt from the
2096	2096	14 provisions of Section 250; and
2097	2097	15 (AA) For taxable years beginning on or after
2098	2098	16 January 1, 2023, for any cannabis establishment
2099	2099	17 operating in this State and licensed under the
2100	2100	18 Cannabis Regulation and Tax Act or any cannabis
2101	2101	19 cultivation center or medical cannabis dispensing
2102	2102	20 organization operating in this State and licensed
2103	2103	21 under the Compassionate Use of Medical Cannabis
2104	2104	22 Program Act, an amount equal to the deductions that
2105	2105	23 were disallowed under Section 280E of the Internal
2106	2106	24 Revenue Code for the taxable year and that would not be
2107	2107	25 added back under this subsection. The provisions of
2108	2108	26 this subparagraph (AA) are exempt from the provisions
2109	2109
2110	2110
2111	2111
2112	2112
2113	2113
2114	2114	SB0089 - 58 - LRB104 03295 HLH 13317 b
2115	2115
2116	2116
2117	2117	SB0089- 59 -LRB104 03295 HLH 13317 b SB0089 - 59 - LRB104 03295 HLH 13317 b
2118	2118	SB0089 - 59 - LRB104 03295 HLH 13317 b
2119	2119	1 of Section 250.
2120	2120	2 (3) Special rule. For purposes of paragraph (2)(A),
2121	2121	3 "gross income" in the case of a life insurance company,
2122	2122	4 for tax years ending on and after December 31, 1994, and
2123	2123	5 prior to December 31, 2011, shall mean the gross
2124	2124	6 investment income for the taxable year and, for tax years
2125	2125	7 ending on or after December 31, 2011, shall mean all
2126	2126	8 amounts included in life insurance gross income under
2127	2127	9 Section 803(a)(3) of the Internal Revenue Code.
2128	2128	10 (c) Trusts and estates.
2129	2129	11 (1) In general. In the case of a trust or estate, base
2130	2130	12 income means an amount equal to the taxpayer's taxable
2131	2131	13 income for the taxable year as modified by paragraph (2).
2132	2132	14 (2) Modifications. Subject to the provisions of
2133	2133	15 paragraph (3), the taxable income referred to in paragraph
2134	2134	16 (1) shall be modified by adding thereto the sum of the
2135	2135	17 following amounts:
2136	2136	18 (A) An amount equal to all amounts paid or accrued
2137	2137	19 to the taxpayer as interest or dividends during the
2138	2138	20 taxable year to the extent excluded from gross income
2139	2139	21 in the computation of taxable income;
2140	2140	22 (B) In the case of (i) an estate, $600; (ii) a
2141	2141	23 trust which, under its governing instrument, is
2142	2142	24 required to distribute all of its income currently,
2143	2143	25 $300; and (iii) any other trust, $100, but in each such
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148
2149	2149	SB0089 - 59 - LRB104 03295 HLH 13317 b
2150	2150
2151	2151
2152	2152	SB0089- 60 -LRB104 03295 HLH 13317 b SB0089 - 60 - LRB104 03295 HLH 13317 b
2153	2153	SB0089 - 60 - LRB104 03295 HLH 13317 b
2154	2154	1 case, only to the extent such amount was deducted in
2155	2155	2 the computation of taxable income;
2156	2156	3 (C) An amount equal to the amount of tax imposed by
2157	2157	4 this Act to the extent deducted from gross income in
2158	2158	5 the computation of taxable income for the taxable
2159	2159	6 year;
2160	2160	7 (D) The amount of any net operating loss deduction
2161	2161	8 taken in arriving at taxable income, other than a net
2162	2162	9 operating loss carried forward from a taxable year
2163	2163	10 ending prior to December 31, 1986;
2164	2164	11 (E) For taxable years in which a net operating
2165	2165	12 loss carryback or carryforward from a taxable year
2166	2166	13 ending prior to December 31, 1986 is an element of
2167	2167	14 taxable income under paragraph (1) of subsection (e)
2168	2168	15 or subparagraph (E) of paragraph (2) of subsection
2169	2169	16 (e), the amount by which addition modifications other
2170	2170	17 than those provided by this subparagraph (E) exceeded
2171	2171	18 subtraction modifications in such taxable year, with
2172	2172	19 the following limitations applied in the order that
2173	2173	20 they are listed:
2174	2174	21 (i) the addition modification relating to the
2175	2175	22 net operating loss carried back or forward to the
2176	2176	23 taxable year from any taxable year ending prior to
2177	2177	24 December 31, 1986 shall be reduced by the amount
2178	2178	25 of addition modification under this subparagraph
2179	2179	26 (E) which related to that net operating loss and
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184
2185	2185	SB0089 - 60 - LRB104 03295 HLH 13317 b
2186	2186
2187	2187
2188	2188	SB0089- 61 -LRB104 03295 HLH 13317 b SB0089 - 61 - LRB104 03295 HLH 13317 b
2189	2189	SB0089 - 61 - LRB104 03295 HLH 13317 b
2190	2190	1 which was taken into account in calculating the
2191	2191	2 base income of an earlier taxable year, and
2192	2192	3 (ii) the addition modification relating to the
2193	2193	4 net operating loss carried back or forward to the
2194	2194	5 taxable year from any taxable year ending prior to
2195	2195	6 December 31, 1986 shall not exceed the amount of
2196	2196	7 such carryback or carryforward;
2197	2197	8 For taxable years in which there is a net
2198	2198	9 operating loss carryback or carryforward from more
2199	2199	10 than one other taxable year ending prior to December
2200	2200	11 31, 1986, the addition modification provided in this
2201	2201	12 subparagraph (E) shall be the sum of the amounts
2202	2202	13 computed independently under the preceding provisions
2203	2203	14 of this subparagraph (E) for each such taxable year;
2204	2204	15 (F) For taxable years ending on or after January
2205	2205	16 1, 1989, an amount equal to the tax deducted pursuant
2206	2206	17 to Section 164 of the Internal Revenue Code if the
2207	2207	18 trust or estate is claiming the same tax for purposes
2208	2208	19 of the Illinois foreign tax credit under Section 601
2209	2209	20 of this Act;
2210	2210	21 (G) An amount equal to the amount of the capital
2211	2211	22 gain deduction allowable under the Internal Revenue
2212	2212	23 Code, to the extent deducted from gross income in the
2213	2213	24 computation of taxable income;
2214	2214	25 (G-5) For taxable years ending after December 31,
2215	2215	26 1997, an amount equal to any eligible remediation
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220
2221	2221	SB0089 - 61 - LRB104 03295 HLH 13317 b
2222	2222
2223	2223
2224	2224	SB0089- 62 -LRB104 03295 HLH 13317 b SB0089 - 62 - LRB104 03295 HLH 13317 b
2225	2225	SB0089 - 62 - LRB104 03295 HLH 13317 b
2226	2226	1 costs that the trust or estate deducted in computing
2227	2227	2 adjusted gross income and for which the trust or
2228	2228	3 estate claims a credit under subsection (l) of Section
2229	2229	4 201;
2230	2230	5 (G-10) For taxable years 2001 and thereafter, an
2231	2231	6 amount equal to the bonus depreciation deduction taken
2232	2232	7 on the taxpayer's federal income tax return for the
2233	2233	8 taxable year under subsection (k) of Section 168 of
2234	2234	9 the Internal Revenue Code; and
2235	2235	10 (G-11) If the taxpayer sells, transfers, abandons,
2236	2236	11 or otherwise disposes of property for which the
2237	2237	12 taxpayer was required in any taxable year to make an
2238	2238	13 addition modification under subparagraph (G-10), then
2239	2239	14 an amount equal to the aggregate amount of the
2240	2240	15 deductions taken in all taxable years under
2241	2241	16 subparagraph (R) with respect to that property.
2242	2242	17 If the taxpayer continues to own property through
2243	2243	18 the last day of the last tax year for which a
2244	2244	19 subtraction is allowed with respect to that property
2245	2245	20 under subparagraph (R) and for which the taxpayer was
2246	2246	21 allowed in any taxable year to make a subtraction
2247	2247	22 modification under subparagraph (R), then an amount
2248	2248	23 equal to that subtraction modification.
2249	2249	24 The taxpayer is required to make the addition
2250	2250	25 modification under this subparagraph only once with
2251	2251	26 respect to any one piece of property;
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256
2257	2257	SB0089 - 62 - LRB104 03295 HLH 13317 b
2258	2258
2259	2259
2260	2260	SB0089- 63 -LRB104 03295 HLH 13317 b SB0089 - 63 - LRB104 03295 HLH 13317 b
2261	2261	SB0089 - 63 - LRB104 03295 HLH 13317 b
2262	2262	1 (G-12) An amount equal to the amount otherwise
2263	2263	2 allowed as a deduction in computing base income for
2264	2264	3 interest paid, accrued, or incurred, directly or
2265	2265	4 indirectly, (i) for taxable years ending on or after
2266	2266	5 December 31, 2004, to a foreign person who would be a
2267	2267	6 member of the same unitary business group but for the
2268	2268	7 fact that the foreign person's business activity
2269	2269	8 outside the United States is 80% or more of the foreign
2270	2270	9 person's total business activity and (ii) for taxable
2271	2271	10 years ending on or after December 31, 2008, to a person
2272	2272	11 who would be a member of the same unitary business
2273	2273	12 group but for the fact that the person is prohibited
2274	2274	13 under Section 1501(a)(27) from being included in the
2275	2275	14 unitary business group because he or she is ordinarily
2276	2276	15 required to apportion business income under different
2277	2277	16 subsections of Section 304. The addition modification
2278	2278	17 required by this subparagraph shall be reduced to the
2279	2279	18 extent that dividends were included in base income of
2280	2280	19 the unitary group for the same taxable year and
2281	2281	20 received by the taxpayer or by a member of the
2282	2282	21 taxpayer's unitary business group (including amounts
2283	2283	22 included in gross income pursuant to Sections 951
2284	2284	23 through 964 of the Internal Revenue Code and amounts
2285	2285	24 included in gross income under Section 78 of the
2286	2286	25 Internal Revenue Code) with respect to the stock of
2287	2287	26 the same person to whom the interest was paid,
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292
2293	2293	SB0089 - 63 - LRB104 03295 HLH 13317 b
2294	2294
2295	2295
2296	2296	SB0089- 64 -LRB104 03295 HLH 13317 b SB0089 - 64 - LRB104 03295 HLH 13317 b
2297	2297	SB0089 - 64 - LRB104 03295 HLH 13317 b
2298	2298	1 accrued, or incurred.
2299	2299	2 This paragraph shall not apply to the following:
2300	2300	3 (i) an item of interest paid, accrued, or
2301	2301	4 incurred, directly or indirectly, to a person who
2302	2302	5 is subject in a foreign country or state, other
2303	2303	6 than a state which requires mandatory unitary
2304	2304	7 reporting, to a tax on or measured by net income
2305	2305	8 with respect to such interest; or
2306	2306	9 (ii) an item of interest paid, accrued, or
2307	2307	10 incurred, directly or indirectly, to a person if
2308	2308	11 the taxpayer can establish, based on a
2309	2309	12 preponderance of the evidence, both of the
2310	2310	13 following:
2311	2311	14 (a) the person, during the same taxable
2312	2312	15 year, paid, accrued, or incurred, the interest
2313	2313	16 to a person that is not a related member, and
2314	2314	17 (b) the transaction giving rise to the
2315	2315	18 interest expense between the taxpayer and the
2316	2316	19 person did not have as a principal purpose the
2317	2317	20 avoidance of Illinois income tax, and is paid
2318	2318	21 pursuant to a contract or agreement that
2319	2319	22 reflects an arm's-length interest rate and
2320	2320	23 terms; or
2321	2321	24 (iii) the taxpayer can establish, based on
2322	2322	25 clear and convincing evidence, that the interest
2323	2323	26 paid, accrued, or incurred relates to a contract
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328
2329	2329	SB0089 - 64 - LRB104 03295 HLH 13317 b
2330	2330
2331	2331
2332	2332	SB0089- 65 -LRB104 03295 HLH 13317 b SB0089 - 65 - LRB104 03295 HLH 13317 b
2333	2333	SB0089 - 65 - LRB104 03295 HLH 13317 b
2334	2334	1 or agreement entered into at arm's-length rates
2335	2335	2 and terms and the principal purpose for the
2336	2336	3 payment is not federal or Illinois tax avoidance;
2337	2337	4 or
2338	2338	5 (iv) an item of interest paid, accrued, or
2339	2339	6 incurred, directly or indirectly, to a person if
2340	2340	7 the taxpayer establishes by clear and convincing
2341	2341	8 evidence that the adjustments are unreasonable; or
2342	2342	9 if the taxpayer and the Director agree in writing
2343	2343	10 to the application or use of an alternative method
2344	2344	11 of apportionment under Section 304(f).
2345	2345	12 Nothing in this subsection shall preclude the
2346	2346	13 Director from making any other adjustment
2347	2347	14 otherwise allowed under Section 404 of this Act
2348	2348	15 for any tax year beginning after the effective
2349	2349	16 date of this amendment provided such adjustment is
2350	2350	17 made pursuant to regulation adopted by the
2351	2351	18 Department and such regulations provide methods
2352	2352	19 and standards by which the Department will utilize
2353	2353	20 its authority under Section 404 of this Act;
2354	2354	21 (G-13) An amount equal to the amount of intangible
2355	2355	22 expenses and costs otherwise allowed as a deduction in
2356	2356	23 computing base income, and that were paid, accrued, or
2357	2357	24 incurred, directly or indirectly, (i) for taxable
2358	2358	25 years ending on or after December 31, 2004, to a
2359	2359	26 foreign person who would be a member of the same
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364
2365	2365	SB0089 - 65 - LRB104 03295 HLH 13317 b
2366	2366
2367	2367
2368	2368	SB0089- 66 -LRB104 03295 HLH 13317 b SB0089 - 66 - LRB104 03295 HLH 13317 b
2369	2369	SB0089 - 66 - LRB104 03295 HLH 13317 b
2370	2370	1 unitary business group but for the fact that the
2371	2371	2 foreign person's business activity outside the United
2372	2372	3 States is 80% or more of that person's total business
2373	2373	4 activity and (ii) for taxable years ending on or after
2374	2374	5 December 31, 2008, to a person who would be a member of
2375	2375	6 the same unitary business group but for the fact that
2376	2376	7 the person is prohibited under Section 1501(a)(27)
2377	2377	8 from being included in the unitary business group
2378	2378	9 because he or she is ordinarily required to apportion
2379	2379	10 business income under different subsections of Section
2380	2380	11 304. The addition modification required by this
2381	2381	12 subparagraph shall be reduced to the extent that
2382	2382	13 dividends were included in base income of the unitary
2383	2383	14 group for the same taxable year and received by the
2384	2384	15 taxpayer or by a member of the taxpayer's unitary
2385	2385	16 business group (including amounts included in gross
2386	2386	17 income pursuant to Sections 951 through 964 of the
2387	2387	18 Internal Revenue Code and amounts included in gross
2388	2388	19 income under Section 78 of the Internal Revenue Code)
2389	2389	20 with respect to the stock of the same person to whom
2390	2390	21 the intangible expenses and costs were directly or
2391	2391	22 indirectly paid, incurred, or accrued. The preceding
2392	2392	23 sentence shall not apply to the extent that the same
2393	2393	24 dividends caused a reduction to the addition
2394	2394	25 modification required under Section 203(c)(2)(G-12) of
2395	2395	26 this Act. As used in this subparagraph, the term
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400
2401	2401	SB0089 - 66 - LRB104 03295 HLH 13317 b
2402	2402
2403	2403
2404	2404	SB0089- 67 -LRB104 03295 HLH 13317 b SB0089 - 67 - LRB104 03295 HLH 13317 b
2405	2405	SB0089 - 67 - LRB104 03295 HLH 13317 b
2406	2406	1 "intangible expenses and costs" includes: (1)
2407	2407	2 expenses, losses, and costs for or related to the
2408	2408	3 direct or indirect acquisition, use, maintenance or
2409	2409	4 management, ownership, sale, exchange, or any other
2410	2410	5 disposition of intangible property; (2) losses
2411	2411	6 incurred, directly or indirectly, from factoring
2412	2412	7 transactions or discounting transactions; (3) royalty,
2413	2413	8 patent, technical, and copyright fees; (4) licensing
2414	2414	9 fees; and (5) other similar expenses and costs. For
2415	2415	10 purposes of this subparagraph, "intangible property"
2416	2416	11 includes patents, patent applications, trade names,
2417	2417	12 trademarks, service marks, copyrights, mask works,
2418	2418	13 trade secrets, and similar types of intangible assets.
2419	2419	14 This paragraph shall not apply to the following:
2420	2420	15 (i) any item of intangible expenses or costs
2421	2421	16 paid, accrued, or incurred, directly or
2422	2422	17 indirectly, from a transaction with a person who
2423	2423	18 is subject in a foreign country or state, other
2424	2424	19 than a state which requires mandatory unitary
2425	2425	20 reporting, to a tax on or measured by net income
2426	2426	21 with respect to such item; or
2427	2427	22 (ii) any item of intangible expense or cost
2428	2428	23 paid, accrued, or incurred, directly or
2429	2429	24 indirectly, if the taxpayer can establish, based
2430	2430	25 on a preponderance of the evidence, both of the
2431	2431	26 following:
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436
2437	2437	SB0089 - 67 - LRB104 03295 HLH 13317 b
2438	2438
2439	2439
2440	2440	SB0089- 68 -LRB104 03295 HLH 13317 b SB0089 - 68 - LRB104 03295 HLH 13317 b
2441	2441	SB0089 - 68 - LRB104 03295 HLH 13317 b
2442	2442	1 (a) the person during the same taxable
2443	2443	2 year paid, accrued, or incurred, the
2444	2444	3 intangible expense or cost to a person that is
2445	2445	4 not a related member, and
2446	2446	5 (b) the transaction giving rise to the
2447	2447	6 intangible expense or cost between the
2448	2448	7 taxpayer and the person did not have as a
2449	2449	8 principal purpose the avoidance of Illinois
2450	2450	9 income tax, and is paid pursuant to a contract
2451	2451	10 or agreement that reflects arm's-length terms;
2452	2452	11 or
2453	2453	12 (iii) any item of intangible expense or cost
2454	2454	13 paid, accrued, or incurred, directly or
2455	2455	14 indirectly, from a transaction with a person if
2456	2456	15 the taxpayer establishes by clear and convincing
2457	2457	16 evidence, that the adjustments are unreasonable;
2458	2458	17 or if the taxpayer and the Director agree in
2459	2459	18 writing to the application or use of an
2460	2460	19 alternative method of apportionment under Section
2461	2461	20 304(f);
2462	2462	21 Nothing in this subsection shall preclude the
2463	2463	22 Director from making any other adjustment
2464	2464	23 otherwise allowed under Section 404 of this Act
2465	2465	24 for any tax year beginning after the effective
2466	2466	25 date of this amendment provided such adjustment is
2467	2467	26 made pursuant to regulation adopted by the
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472
2473	2473	SB0089 - 68 - LRB104 03295 HLH 13317 b
2474	2474
2475	2475
2476	2476	SB0089- 69 -LRB104 03295 HLH 13317 b SB0089 - 69 - LRB104 03295 HLH 13317 b
2477	2477	SB0089 - 69 - LRB104 03295 HLH 13317 b
2478	2478	1 Department and such regulations provide methods
2479	2479	2 and standards by which the Department will utilize
2480	2480	3 its authority under Section 404 of this Act;
2481	2481	4 (G-14) For taxable years ending on or after
2482	2482	5 December 31, 2008, an amount equal to the amount of
2483	2483	6 insurance premium expenses and costs otherwise allowed
2484	2484	7 as a deduction in computing base income, and that were
2485	2485	8 paid, accrued, or incurred, directly or indirectly, to
2486	2486	9 a person who would be a member of the same unitary
2487	2487	10 business group but for the fact that the person is
2488	2488	11 prohibited under Section 1501(a)(27) from being
2489	2489	12 included in the unitary business group because he or
2490	2490	13 she is ordinarily required to apportion business
2491	2491	14 income under different subsections of Section 304. The
2492	2492	15 addition modification required by this subparagraph
2493	2493	16 shall be reduced to the extent that dividends were
2494	2494	17 included in base income of the unitary group for the
2495	2495	18 same taxable year and received by the taxpayer or by a
2496	2496	19 member of the taxpayer's unitary business group
2497	2497	20 (including amounts included in gross income under
2498	2498	21 Sections 951 through 964 of the Internal Revenue Code
2499	2499	22 and amounts included in gross income under Section 78
2500	2500	23 of the Internal Revenue Code) with respect to the
2501	2501	24 stock of the same person to whom the premiums and costs
2502	2502	25 were directly or indirectly paid, incurred, or
2503	2503	26 accrued. The preceding sentence does not apply to the
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508
2509	2509	SB0089 - 69 - LRB104 03295 HLH 13317 b
2510	2510
2511	2511
2512	2512	SB0089- 70 -LRB104 03295 HLH 13317 b SB0089 - 70 - LRB104 03295 HLH 13317 b
2513	2513	SB0089 - 70 - LRB104 03295 HLH 13317 b
2514	2514	1 extent that the same dividends caused a reduction to
2515	2515	2 the addition modification required under Section
2516	2516	3 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2517	2517	4 Act;
2518	2518	5 (G-15) An amount equal to the credit allowable to
2519	2519	6 the taxpayer under Section 218(a) of this Act,
2520	2520	7 determined without regard to Section 218(c) of this
2521	2521	8 Act;
2522	2522	9 (G-16) For taxable years ending on or after
2523	2523	10 December 31, 2017, an amount equal to the deduction
2524	2524	11 allowed under Section 199 of the Internal Revenue Code
2525	2525	12 for the taxable year;
2526	2526	13 (G-17) the amount that is claimed as a federal
2527	2527	14 deduction when computing the taxpayer's federal
2528	2528	15 taxable income for the taxable year and that is
2529	2529	16 attributable to an endowment gift for which the
2530	2530	17 taxpayer receives a credit under the Illinois Gives
2531	2531	18 Tax Credit Act;
2532	2532	19 and by deducting from the total so obtained the sum of the
2533	2533	20 following amounts:
2534	2534	21 (H) An amount equal to all amounts included in
2535	2535	22 such total pursuant to the provisions of Sections
2536	2536	23 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2537	2537	24 of the Internal Revenue Code or included in such total
2538	2538	25 as distributions under the provisions of any
2539	2539	26 retirement or disability plan for employees of any
2540	2540
2541	2541
2542	2542
2543	2543
2544	2544
2545	2545	SB0089 - 70 - LRB104 03295 HLH 13317 b
2546	2546
2547	2547
2548	2548	SB0089- 71 -LRB104 03295 HLH 13317 b SB0089 - 71 - LRB104 03295 HLH 13317 b
2549	2549	SB0089 - 71 - LRB104 03295 HLH 13317 b
2550	2550	1 governmental agency or unit, or retirement payments to
2551	2551	2 retired partners, which payments are excluded in
2552	2552	3 computing net earnings from self employment by Section
2553	2553	4 1402 of the Internal Revenue Code and regulations
2554	2554	5 adopted pursuant thereto;
2555	2555	6 (I) The valuation limitation amount;
2556	2556	7 (J) An amount equal to the amount of any tax
2557	2557	8 imposed by this Act which was refunded to the taxpayer
2558	2558	9 and included in such total for the taxable year;
2559	2559	10 (K) An amount equal to all amounts included in
2560	2560	11 taxable income as modified by subparagraphs (A), (B),
2561	2561	12 (C), (D), (E), (F) and (G) which are exempt from
2562	2562	13 taxation by this State either by reason of its
2563	2563	14 statutes or Constitution or by reason of the
2564	2564	15 Constitution, treaties or statutes of the United
2565	2565	16 States; provided that, in the case of any statute of
2566	2566	17 this State that exempts income derived from bonds or
2567	2567	18 other obligations from the tax imposed under this Act,
2568	2568	19 the amount exempted shall be the interest net of bond
2569	2569	20 premium amortization;
2570	2570	21 (L) With the exception of any amounts subtracted
2571	2571	22 under subparagraph (K), an amount equal to the sum of
2572	2572	23 all amounts disallowed as deductions by (i) Sections
2573	2573	24 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2574	2574	25 and all amounts of expenses allocable to interest and
2575	2575	26 disallowed as deductions by Section 265(a)(1) of the
2576	2576
2577	2577
2578	2578
2579	2579
2580	2580
2581	2581	SB0089 - 71 - LRB104 03295 HLH 13317 b
2582	2582
2583	2583
2584	2584	SB0089- 72 -LRB104 03295 HLH 13317 b SB0089 - 72 - LRB104 03295 HLH 13317 b
2585	2585	SB0089 - 72 - LRB104 03295 HLH 13317 b
2586	2586	1 Internal Revenue Code; and (ii) for taxable years
2587	2587	2 ending on or after August 13, 1999, Sections
2588	2588	3 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2589	2589	4 Internal Revenue Code, plus, (iii) for taxable years
2590	2590	5 ending on or after December 31, 2011, Section
2591	2591	6 45G(e)(3) of the Internal Revenue Code and, for
2592	2592	7 taxable years ending on or after December 31, 2008,
2593	2593	8 any amount included in gross income under Section 87
2594	2594	9 of the Internal Revenue Code; the provisions of this
2595	2595	10 subparagraph are exempt from the provisions of Section
2596	2596	11 250;
2597	2597	12 (M) An amount equal to those dividends included in
2598	2598	13 such total which were paid by a corporation which
2599	2599	14 conducts business operations in a River Edge
2600	2600	15 Redevelopment Zone or zones created under the River
2601	2601	16 Edge Redevelopment Zone Act and conducts substantially
2602	2602	17 all of its operations in a River Edge Redevelopment
2603	2603	18 Zone or zones. This subparagraph (M) is exempt from
2604	2604	19 the provisions of Section 250;
2605	2605	20 (N) An amount equal to any contribution made to a
2606	2606	21 job training project established pursuant to the Tax
2607	2607	22 Increment Allocation Redevelopment Act;
2608	2608	23 (O) An amount equal to those dividends included in
2609	2609	24 such total that were paid by a corporation that
2610	2610	25 conducts business operations in a federally designated
2611	2611	26 Foreign Trade Zone or Sub-Zone and that is designated
2612	2612
2613	2613
2614	2614
2615	2615
2616	2616
2617	2617	SB0089 - 72 - LRB104 03295 HLH 13317 b
2618	2618
2619	2619
2620	2620	SB0089- 73 -LRB104 03295 HLH 13317 b SB0089 - 73 - LRB104 03295 HLH 13317 b
2621	2621	SB0089 - 73 - LRB104 03295 HLH 13317 b
2622	2622	1 a High Impact Business located in Illinois; provided
2623	2623	2 that dividends eligible for the deduction provided in
2624	2624	3 subparagraph (M) of paragraph (2) of this subsection
2625	2625	4 shall not be eligible for the deduction provided under
2626	2626	5 this subparagraph (O);
2627	2627	6 (P) An amount equal to the amount of the deduction
2628	2628	7 used to compute the federal income tax credit for
2629	2629	8 restoration of substantial amounts held under claim of
2630	2630	9 right for the taxable year pursuant to Section 1341 of
2631	2631	10 the Internal Revenue Code;
2632	2632	11 (Q) For taxable year 1999 and thereafter, an
2633	2633	12 amount equal to the amount of any (i) distributions,
2634	2634	13 to the extent includible in gross income for federal
2635	2635	14 income tax purposes, made to the taxpayer because of
2636	2636	15 his or her status as a victim of persecution for racial
2637	2637	16 or religious reasons by Nazi Germany or any other Axis
2638	2638	17 regime or as an heir of the victim and (ii) items of
2639	2639	18 income, to the extent includible in gross income for
2640	2640	19 federal income tax purposes, attributable to, derived
2641	2641	20 from or in any way related to assets stolen from,
2642	2642	21 hidden from, or otherwise lost to a victim of
2643	2643	22 persecution for racial or religious reasons by Nazi
2644	2644	23 Germany or any other Axis regime immediately prior to,
2645	2645	24 during, and immediately after World War II, including,
2646	2646	25 but not limited to, interest on the proceeds
2647	2647	26 receivable as insurance under policies issued to a
2648	2648
2649	2649
2650	2650
2651	2651
2652	2652
2653	2653	SB0089 - 73 - LRB104 03295 HLH 13317 b
2654	2654
2655	2655
2656	2656	SB0089- 74 -LRB104 03295 HLH 13317 b SB0089 - 74 - LRB104 03295 HLH 13317 b
2657	2657	SB0089 - 74 - LRB104 03295 HLH 13317 b
2658	2658	1 victim of persecution for racial or religious reasons
2659	2659	2 by Nazi Germany or any other Axis regime by European
2660	2660	3 insurance companies immediately prior to and during
2661	2661	4 World War II; provided, however, this subtraction from
2662	2662	5 federal adjusted gross income does not apply to assets
2663	2663	6 acquired with such assets or with the proceeds from
2664	2664	7 the sale of such assets; provided, further, this
2665	2665	8 paragraph shall only apply to a taxpayer who was the
2666	2666	9 first recipient of such assets after their recovery
2667	2667	10 and who is a victim of persecution for racial or
2668	2668	11 religious reasons by Nazi Germany or any other Axis
2669	2669	12 regime or as an heir of the victim. The amount of and
2670	2670	13 the eligibility for any public assistance, benefit, or
2671	2671	14 similar entitlement is not affected by the inclusion
2672	2672	15 of items (i) and (ii) of this paragraph in gross income
2673	2673	16 for federal income tax purposes. This paragraph is
2674	2674	17 exempt from the provisions of Section 250;
2675	2675	18 (R) For taxable years 2001 and thereafter, for the
2676	2676	19 taxable year in which the bonus depreciation deduction
2677	2677	20 is taken on the taxpayer's federal income tax return
2678	2678	21 under subsection (k) of Section 168 of the Internal
2679	2679	22 Revenue Code and for each applicable taxable year
2680	2680	23 thereafter, an amount equal to "x", where:
2681	2681	24 (1) "y" equals the amount of the depreciation
2682	2682	25 deduction taken for the taxable year on the
2683	2683	26 taxpayer's federal income tax return on property
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688
2689	2689	SB0089 - 74 - LRB104 03295 HLH 13317 b
2690	2690
2691	2691
2692	2692	SB0089- 75 -LRB104 03295 HLH 13317 b SB0089 - 75 - LRB104 03295 HLH 13317 b
2693	2693	SB0089 - 75 - LRB104 03295 HLH 13317 b
2694	2694	1 for which the bonus depreciation deduction was
2695	2695	2 taken in any year under subsection (k) of Section
2696	2696	3 168 of the Internal Revenue Code, but not
2697	2697	4 including the bonus depreciation deduction;
2698	2698	5 (2) for taxable years ending on or before
2699	2699	6 December 31, 2005, "x" equals "y" multiplied by 30
2700	2700	7 and then divided by 70 (or "y" multiplied by
2701	2701	8 0.429); and
2702	2702	9 (3) for taxable years ending after December
2703	2703	10 31, 2005:
2704	2704	11 (i) for property on which a bonus
2705	2705	12 depreciation deduction of 30% of the adjusted
2706	2706	13 basis was taken, "x" equals "y" multiplied by
2707	2707	14 30 and then divided by 70 (or "y" multiplied
2708	2708	15 by 0.429);
2709	2709	16 (ii) for property on which a bonus
2710	2710	17 depreciation deduction of 50% of the adjusted
2711	2711	18 basis was taken, "x" equals "y" multiplied by
2712	2712	19 1.0;
2713	2713	20 (iii) for property on which a bonus
2714	2714	21 depreciation deduction of 100% of the adjusted
2715	2715	22 basis was taken in a taxable year ending on or
2716	2716	23 after December 31, 2021, "x" equals the
2717	2717	24 depreciation deduction that would be allowed
2718	2718	25 on that property if the taxpayer had made the
2719	2719	26 election under Section 168(k)(7) of the
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724
2725	2725	SB0089 - 75 - LRB104 03295 HLH 13317 b
2726	2726
2727	2727
2728	2728	SB0089- 76 -LRB104 03295 HLH 13317 b SB0089 - 76 - LRB104 03295 HLH 13317 b
2729	2729	SB0089 - 76 - LRB104 03295 HLH 13317 b
2730	2730	1 Internal Revenue Code to not claim bonus
2731	2731	2 depreciation on that property; and
2732	2732	3 (iv) for property on which a bonus
2733	2733	4 depreciation deduction of a percentage other
2734	2734	5 than 30%, 50% or 100% of the adjusted basis
2735	2735	6 was taken in a taxable year ending on or after
2736	2736	7 December 31, 2021, "x" equals "y" multiplied
2737	2737	8 by 100 times the percentage bonus depreciation
2738	2738	9 on the property (that is, 100(bonus%)) and
2739	2739	10 then divided by 100 times 1 minus the
2740	2740	11 percentage bonus depreciation on the property
2741	2741	12 (that is, 100(1-bonus%)).
2742	2742	13 The aggregate amount deducted under this
2743	2743	14 subparagraph in all taxable years for any one piece of
2744	2744	15 property may not exceed the amount of the bonus
2745	2745	16 depreciation deduction taken on that property on the
2746	2746	17 taxpayer's federal income tax return under subsection
2747	2747	18 (k) of Section 168 of the Internal Revenue Code. This
2748	2748	19 subparagraph (R) is exempt from the provisions of
2749	2749	20 Section 250;
2750	2750	21 (S) If the taxpayer sells, transfers, abandons, or
2751	2751	22 otherwise disposes of property for which the taxpayer
2752	2752	23 was required in any taxable year to make an addition
2753	2753	24 modification under subparagraph (G-10), then an amount
2754	2754	25 equal to that addition modification.
2755	2755	26 If the taxpayer continues to own property through
2756	2756
2757	2757
2758	2758
2759	2759
2760	2760
2761	2761	SB0089 - 76 - LRB104 03295 HLH 13317 b
2762	2762
2763	2763
2764	2764	SB0089- 77 -LRB104 03295 HLH 13317 b SB0089 - 77 - LRB104 03295 HLH 13317 b
2765	2765	SB0089 - 77 - LRB104 03295 HLH 13317 b
2766	2766	1 the last day of the last tax year for which a
2767	2767	2 subtraction is allowed with respect to that property
2768	2768	3 under subparagraph (R) and for which the taxpayer was
2769	2769	4 required in any taxable year to make an addition
2770	2770	5 modification under subparagraph (G-10), then an amount
2771	2771	6 equal to that addition modification.
2772	2772	7 The taxpayer is allowed to take the deduction
2773	2773	8 under this subparagraph only once with respect to any
2774	2774	9 one piece of property.
2775	2775	10 This subparagraph (S) is exempt from the
2776	2776	11 provisions of Section 250;
2777	2777	12 (T) The amount of (i) any interest income (net of
2778	2778	13 the deductions allocable thereto) taken into account
2779	2779	14 for the taxable year with respect to a transaction
2780	2780	15 with a taxpayer that is required to make an addition
2781	2781	16 modification with respect to such transaction under
2782	2782	17 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2783	2783	18 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2784	2784	19 the amount of such addition modification and (ii) any
2785	2785	20 income from intangible property (net of the deductions
2786	2786	21 allocable thereto) taken into account for the taxable
2787	2787	22 year with respect to a transaction with a taxpayer
2788	2788	23 that is required to make an addition modification with
2789	2789	24 respect to such transaction under Section
2790	2790	25 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2791	2791	26 203(d)(2)(D-8), but not to exceed the amount of such
2792	2792
2793	2793
2794	2794
2795	2795
2796	2796
2797	2797	SB0089 - 77 - LRB104 03295 HLH 13317 b
2798	2798
2799	2799
2800	2800	SB0089- 78 -LRB104 03295 HLH 13317 b SB0089 - 78 - LRB104 03295 HLH 13317 b
2801	2801	SB0089 - 78 - LRB104 03295 HLH 13317 b
2802	2802	1 addition modification. This subparagraph (T) is exempt
2803	2803	2 from the provisions of Section 250;
2804	2804	3 (U) An amount equal to the interest income taken
2805	2805	4 into account for the taxable year (net of the
2806	2806	5 deductions allocable thereto) with respect to
2807	2807	6 transactions with (i) a foreign person who would be a
2808	2808	7 member of the taxpayer's unitary business group but
2809	2809	8 for the fact the foreign person's business activity
2810	2810	9 outside the United States is 80% or more of that
2811	2811	10 person's total business activity and (ii) for taxable
2812	2812	11 years ending on or after December 31, 2008, to a person
2813	2813	12 who would be a member of the same unitary business
2814	2814	13 group but for the fact that the person is prohibited
2815	2815	14 under Section 1501(a)(27) from being included in the
2816	2816	15 unitary business group because he or she is ordinarily
2817	2817	16 required to apportion business income under different
2818	2818	17 subsections of Section 304, but not to exceed the
2819	2819	18 addition modification required to be made for the same
2820	2820	19 taxable year under Section 203(c)(2)(G-12) for
2821	2821	20 interest paid, accrued, or incurred, directly or
2822	2822	21 indirectly, to the same person. This subparagraph (U)
2823	2823	22 is exempt from the provisions of Section 250;
2824	2824	23 (V) An amount equal to the income from intangible
2825	2825	24 property taken into account for the taxable year (net
2826	2826	25 of the deductions allocable thereto) with respect to
2827	2827	26 transactions with (i) a foreign person who would be a
2828	2828
2829	2829
2830	2830
2831	2831
2832	2832
2833	2833	SB0089 - 78 - LRB104 03295 HLH 13317 b
2834	2834
2835	2835
2836	2836	SB0089- 79 -LRB104 03295 HLH 13317 b SB0089 - 79 - LRB104 03295 HLH 13317 b
2837	2837	SB0089 - 79 - LRB104 03295 HLH 13317 b
2838	2838	1 member of the taxpayer's unitary business group but
2839	2839	2 for the fact that the foreign person's business
2840	2840	3 activity outside the United States is 80% or more of
2841	2841	4 that person's total business activity and (ii) for
2842	2842	5 taxable years ending on or after December 31, 2008, to
2843	2843	6 a person who would be a member of the same unitary
2844	2844	7 business group but for the fact that the person is
2845	2845	8 prohibited under Section 1501(a)(27) from being
2846	2846	9 included in the unitary business group because he or
2847	2847	10 she is ordinarily required to apportion business
2848	2848	11 income under different subsections of Section 304, but
2849	2849	12 not to exceed the addition modification required to be
2850	2850	13 made for the same taxable year under Section
2851	2851	14 203(c)(2)(G-13) for intangible expenses and costs
2852	2852	15 paid, accrued, or incurred, directly or indirectly, to
2853	2853	16 the same foreign person. This subparagraph (V) is
2854	2854	17 exempt from the provisions of Section 250;
2855	2855	18 (W) in the case of an estate, an amount equal to
2856	2856	19 all amounts included in such total pursuant to the
2857	2857	20 provisions of Section 111 of the Internal Revenue Code
2858	2858	21 as a recovery of items previously deducted by the
2859	2859	22 decedent from adjusted gross income in the computation
2860	2860	23 of taxable income. This subparagraph (W) is exempt
2861	2861	24 from Section 250;
2862	2862	25 (X) an amount equal to the refund included in such
2863	2863	26 total of any tax deducted for federal income tax
2864	2864
2865	2865
2866	2866
2867	2867
2868	2868
2869	2869	SB0089 - 79 - LRB104 03295 HLH 13317 b
2870	2870
2871	2871
2872	2872	SB0089- 80 -LRB104 03295 HLH 13317 b SB0089 - 80 - LRB104 03295 HLH 13317 b
2873	2873	SB0089 - 80 - LRB104 03295 HLH 13317 b
2874	2874	1 purposes, to the extent that deduction was added back
2875	2875	2 under subparagraph (F). This subparagraph (X) is
2876	2876	3 exempt from the provisions of Section 250;
2877	2877	4 (Y) For taxable years ending on or after December
2878	2878	5 31, 2011, in the case of a taxpayer who was required to
2879	2879	6 add back any insurance premiums under Section
2880	2880	7 203(c)(2)(G-14), such taxpayer may elect to subtract
2881	2881	8 that part of a reimbursement received from the
2882	2882	9 insurance company equal to the amount of the expense
2883	2883	10 or loss (including expenses incurred by the insurance
2884	2884	11 company) that would have been taken into account as a
2885	2885	12 deduction for federal income tax purposes if the
2886	2886	13 expense or loss had been uninsured. If a taxpayer
2887	2887	14 makes the election provided for by this subparagraph
2888	2888	15 (Y), the insurer to which the premiums were paid must
2889	2889	16 add back to income the amount subtracted by the
2890	2890	17 taxpayer pursuant to this subparagraph (Y). This
2891	2891	18 subparagraph (Y) is exempt from the provisions of
2892	2892	19 Section 250;
2893	2893	20 (Z) For taxable years beginning after December 31,
2894	2894	21 2018 and before January 1, 2026, the amount of excess
2895	2895	22 business loss of the taxpayer disallowed as a
2896	2896	23 deduction by Section 461(l)(1)(B) of the Internal
2897	2897	24 Revenue Code; and
2898	2898	25 (AA) For taxable years beginning on or after
2899	2899	26 January 1, 2023, for any cannabis establishment
2900	2900
2901	2901
2902	2902
2903	2903
2904	2904
2905	2905	SB0089 - 80 - LRB104 03295 HLH 13317 b
2906	2906
2907	2907
2908	2908	SB0089- 81 -LRB104 03295 HLH 13317 b SB0089 - 81 - LRB104 03295 HLH 13317 b
2909	2909	SB0089 - 81 - LRB104 03295 HLH 13317 b
2910	2910	1 operating in this State and licensed under the
2911	2911	2 Cannabis Regulation and Tax Act or any cannabis
2912	2912	3 cultivation center or medical cannabis dispensing
2913	2913	4 organization operating in this State and licensed
2914	2914	5 under the Compassionate Use of Medical Cannabis
2915	2915	6 Program Act, an amount equal to the deductions that
2916	2916	7 were disallowed under Section 280E of the Internal
2917	2917	8 Revenue Code for the taxable year and that would not be
2918	2918	9 added back under this subsection. The provisions of
2919	2919	10 this subparagraph (AA) are exempt from the provisions
2920	2920	11 of Section 250.
2921	2921	12 (3) Limitation. The amount of any modification
2922	2922	13 otherwise required under this subsection shall, under
2923	2923	14 regulations prescribed by the Department, be adjusted by
2924	2924	15 any amounts included therein which were properly paid,
2925	2925	16 credited, or required to be distributed, or permanently
2926	2926	17 set aside for charitable purposes pursuant to Internal
2927	2927	18 Revenue Code Section 642(c) during the taxable year.
2928	2928	19 (d) Partnerships.
2929	2929	20 (1) In general. In the case of a partnership, base
2930	2930	21 income means an amount equal to the taxpayer's taxable
2931	2931	22 income for the taxable year as modified by paragraph (2).
2932	2932	23 (2) Modifications. The taxable income referred to in
2933	2933	24 paragraph (1) shall be modified by adding thereto the sum
2934	2934	25 of the following amounts:
2935	2935
2936	2936
2937	2937
2938	2938
2939	2939
2940	2940	SB0089 - 81 - LRB104 03295 HLH 13317 b
2941	2941
2942	2942
2943	2943	SB0089- 82 -LRB104 03295 HLH 13317 b SB0089 - 82 - LRB104 03295 HLH 13317 b
2944	2944	SB0089 - 82 - LRB104 03295 HLH 13317 b
2945	2945	1 (A) An amount equal to all amounts paid or accrued
2946	2946	2 to the taxpayer as interest or dividends during the
2947	2947	3 taxable year to the extent excluded from gross income
2948	2948	4 in the computation of taxable income;
2949	2949	5 (B) An amount equal to the amount of tax imposed by
2950	2950	6 this Act to the extent deducted from gross income for
2951	2951	7 the taxable year;
2952	2952	8 (C) The amount of deductions allowed to the
2953	2953	9 partnership pursuant to Section 707 (c) of the
2954	2954	10 Internal Revenue Code in calculating its taxable
2955	2955	11 income;
2956	2956	12 (D) An amount equal to the amount of the capital
2957	2957	13 gain deduction allowable under the Internal Revenue
2958	2958	14 Code, to the extent deducted from gross income in the
2959	2959	15 computation of taxable income;
2960	2960	16 (D-5) For taxable years 2001 and thereafter, an
2961	2961	17 amount equal to the bonus depreciation deduction taken
2962	2962	18 on the taxpayer's federal income tax return for the
2963	2963	19 taxable year under subsection (k) of Section 168 of
2964	2964	20 the Internal Revenue Code;
2965	2965	21 (D-6) If the taxpayer sells, transfers, abandons,
2966	2966	22 or otherwise disposes of property for which the
2967	2967	23 taxpayer was required in any taxable year to make an
2968	2968	24 addition modification under subparagraph (D-5), then
2969	2969	25 an amount equal to the aggregate amount of the
2970	2970	26 deductions taken in all taxable years under
2971	2971
2972	2972
2973	2973
2974	2974
2975	2975
2976	2976	SB0089 - 82 - LRB104 03295 HLH 13317 b
2977	2977
2978	2978
2979	2979	SB0089- 83 -LRB104 03295 HLH 13317 b SB0089 - 83 - LRB104 03295 HLH 13317 b
2980	2980	SB0089 - 83 - LRB104 03295 HLH 13317 b
2981	2981	1 subparagraph (O) with respect to that property.
2982	2982	2 If the taxpayer continues to own property through
2983	2983	3 the last day of the last tax year for which a
2984	2984	4 subtraction is allowed with respect to that property
2985	2985	5 under subparagraph (O) and for which the taxpayer was
2986	2986	6 allowed in any taxable year to make a subtraction
2987	2987	7 modification under subparagraph (O), then an amount
2988	2988	8 equal to that subtraction modification.
2989	2989	9 The taxpayer is required to make the addition
2990	2990	10 modification under this subparagraph only once with
2991	2991	11 respect to any one piece of property;
2992	2992	12 (D-7) An amount equal to the amount otherwise
2993	2993	13 allowed as a deduction in computing base income for
2994	2994	14 interest paid, accrued, or incurred, directly or
2995	2995	15 indirectly, (i) for taxable years ending on or after
2996	2996	16 December 31, 2004, to a foreign person who would be a
2997	2997	17 member of the same unitary business group but for the
2998	2998	18 fact the foreign person's business activity outside
2999	2999	19 the United States is 80% or more of the foreign
3000	3000	20 person's total business activity and (ii) for taxable
3001	3001	21 years ending on or after December 31, 2008, to a person
3002	3002	22 who would be a member of the same unitary business
3003	3003	23 group but for the fact that the person is prohibited
3004	3004	24 under Section 1501(a)(27) from being included in the
3005	3005	25 unitary business group because he or she is ordinarily
3006	3006	26 required to apportion business income under different
3007	3007
3008	3008
3009	3009
3010	3010
3011	3011
3012	3012	SB0089 - 83 - LRB104 03295 HLH 13317 b
3013	3013
3014	3014
3015	3015	SB0089- 84 -LRB104 03295 HLH 13317 b SB0089 - 84 - LRB104 03295 HLH 13317 b
3016	3016	SB0089 - 84 - LRB104 03295 HLH 13317 b
3017	3017	1 subsections of Section 304. The addition modification
3018	3018	2 required by this subparagraph shall be reduced to the
3019	3019	3 extent that dividends were included in base income of
3020	3020	4 the unitary group for the same taxable year and
3021	3021	5 received by the taxpayer or by a member of the
3022	3022	6 taxpayer's unitary business group (including amounts
3023	3023	7 included in gross income pursuant to Sections 951
3024	3024	8 through 964 of the Internal Revenue Code and amounts
3025	3025	9 included in gross income under Section 78 of the
3026	3026	10 Internal Revenue Code) with respect to the stock of
3027	3027	11 the same person to whom the interest was paid,
3028	3028	12 accrued, or incurred.
3029	3029	13 This paragraph shall not apply to the following:
3030	3030	14 (i) an item of interest paid, accrued, or
3031	3031	15 incurred, directly or indirectly, to a person who
3032	3032	16 is subject in a foreign country or state, other
3033	3033	17 than a state which requires mandatory unitary
3034	3034	18 reporting, to a tax on or measured by net income
3035	3035	19 with respect to such interest; or
3036	3036	20 (ii) an item of interest paid, accrued, or
3037	3037	21 incurred, directly or indirectly, to a person if
3038	3038	22 the taxpayer can establish, based on a
3039	3039	23 preponderance of the evidence, both of the
3040	3040	24 following:
3041	3041	25 (a) the person, during the same taxable
3042	3042	26 year, paid, accrued, or incurred, the interest
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047
3048	3048	SB0089 - 84 - LRB104 03295 HLH 13317 b
3049	3049
3050	3050
3051	3051	SB0089- 85 -LRB104 03295 HLH 13317 b SB0089 - 85 - LRB104 03295 HLH 13317 b
3052	3052	SB0089 - 85 - LRB104 03295 HLH 13317 b
3053	3053	1 to a person that is not a related member, and
3054	3054	2 (b) the transaction giving rise to the
3055	3055	3 interest expense between the taxpayer and the
3056	3056	4 person did not have as a principal purpose the
3057	3057	5 avoidance of Illinois income tax, and is paid
3058	3058	6 pursuant to a contract or agreement that
3059	3059	7 reflects an arm's-length interest rate and
3060	3060	8 terms; or
3061	3061	9 (iii) the taxpayer can establish, based on
3062	3062	10 clear and convincing evidence, that the interest
3063	3063	11 paid, accrued, or incurred relates to a contract
3064	3064	12 or agreement entered into at arm's-length rates
3065	3065	13 and terms and the principal purpose for the
3066	3066	14 payment is not federal or Illinois tax avoidance;
3067	3067	15 or
3068	3068	16 (iv) an item of interest paid, accrued, or
3069	3069	17 incurred, directly or indirectly, to a person if
3070	3070	18 the taxpayer establishes by clear and convincing
3071	3071	19 evidence that the adjustments are unreasonable; or
3072	3072	20 if the taxpayer and the Director agree in writing
3073	3073	21 to the application or use of an alternative method
3074	3074	22 of apportionment under Section 304(f).
3075	3075	23 Nothing in this subsection shall preclude the
3076	3076	24 Director from making any other adjustment
3077	3077	25 otherwise allowed under Section 404 of this Act
3078	3078	26 for any tax year beginning after the effective
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083
3084	3084	SB0089 - 85 - LRB104 03295 HLH 13317 b
3085	3085
3086	3086
3087	3087	SB0089- 86 -LRB104 03295 HLH 13317 b SB0089 - 86 - LRB104 03295 HLH 13317 b
3088	3088	SB0089 - 86 - LRB104 03295 HLH 13317 b
3089	3089	1 date of this amendment provided such adjustment is
3090	3090	2 made pursuant to regulation adopted by the
3091	3091	3 Department and such regulations provide methods
3092	3092	4 and standards by which the Department will utilize
3093	3093	5 its authority under Section 404 of this Act; and
3094	3094	6 (D-8) An amount equal to the amount of intangible
3095	3095	7 expenses and costs otherwise allowed as a deduction in
3096	3096	8 computing base income, and that were paid, accrued, or
3097	3097	9 incurred, directly or indirectly, (i) for taxable
3098	3098	10 years ending on or after December 31, 2004, to a
3099	3099	11 foreign person who would be a member of the same
3100	3100	12 unitary business group but for the fact that the
3101	3101	13 foreign person's business activity outside the United
3102	3102	14 States is 80% or more of that person's total business
3103	3103	15 activity and (ii) for taxable years ending on or after
3104	3104	16 December 31, 2008, to a person who would be a member of
3105	3105	17 the same unitary business group but for the fact that
3106	3106	18 the person is prohibited under Section 1501(a)(27)
3107	3107	19 from being included in the unitary business group
3108	3108	20 because he or she is ordinarily required to apportion
3109	3109	21 business income under different subsections of Section
3110	3110	22 304. The addition modification required by this
3111	3111	23 subparagraph shall be reduced to the extent that
3112	3112	24 dividends were included in base income of the unitary
3113	3113	25 group for the same taxable year and received by the
3114	3114	26 taxpayer or by a member of the taxpayer's unitary
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119
3120	3120	SB0089 - 86 - LRB104 03295 HLH 13317 b
3121	3121
3122	3122
3123	3123	SB0089- 87 -LRB104 03295 HLH 13317 b SB0089 - 87 - LRB104 03295 HLH 13317 b
3124	3124	SB0089 - 87 - LRB104 03295 HLH 13317 b
3125	3125	1 business group (including amounts included in gross
3126	3126	2 income pursuant to Sections 951 through 964 of the
3127	3127	3 Internal Revenue Code and amounts included in gross
3128	3128	4 income under Section 78 of the Internal Revenue Code)
3129	3129	5 with respect to the stock of the same person to whom
3130	3130	6 the intangible expenses and costs were directly or
3131	3131	7 indirectly paid, incurred or accrued. The preceding
3132	3132	8 sentence shall not apply to the extent that the same
3133	3133	9 dividends caused a reduction to the addition
3134	3134	10 modification required under Section 203(d)(2)(D-7) of
3135	3135	11 this Act. As used in this subparagraph, the term
3136	3136	12 "intangible expenses and costs" includes (1) expenses,
3137	3137	13 losses, and costs for, or related to, the direct or
3138	3138	14 indirect acquisition, use, maintenance or management,
3139	3139	15 ownership, sale, exchange, or any other disposition of
3140	3140	16 intangible property; (2) losses incurred, directly or
3141	3141	17 indirectly, from factoring transactions or discounting
3142	3142	18 transactions; (3) royalty, patent, technical, and
3143	3143	19 copyright fees; (4) licensing fees; and (5) other
3144	3144	20 similar expenses and costs. For purposes of this
3145	3145	21 subparagraph, "intangible property" includes patents,
3146	3146	22 patent applications, trade names, trademarks, service
3147	3147	23 marks, copyrights, mask works, trade secrets, and
3148	3148	24 similar types of intangible assets;
3149	3149	25 This paragraph shall not apply to the following:
3150	3150	26 (i) any item of intangible expenses or costs
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155
3156	3156	SB0089 - 87 - LRB104 03295 HLH 13317 b
3157	3157
3158	3158
3159	3159	SB0089- 88 -LRB104 03295 HLH 13317 b SB0089 - 88 - LRB104 03295 HLH 13317 b
3160	3160	SB0089 - 88 - LRB104 03295 HLH 13317 b
3161	3161	1 paid, accrued, or incurred, directly or
3162	3162	2 indirectly, from a transaction with a person who
3163	3163	3 is subject in a foreign country or state, other
3164	3164	4 than a state which requires mandatory unitary
3165	3165	5 reporting, to a tax on or measured by net income
3166	3166	6 with respect to such item; or
3167	3167	7 (ii) any item of intangible expense or cost
3168	3168	8 paid, accrued, or incurred, directly or
3169	3169	9 indirectly, if the taxpayer can establish, based
3170	3170	10 on a preponderance of the evidence, both of the
3171	3171	11 following:
3172	3172	12 (a) the person during the same taxable
3173	3173	13 year paid, accrued, or incurred, the
3174	3174	14 intangible expense or cost to a person that is
3175	3175	15 not a related member, and
3176	3176	16 (b) the transaction giving rise to the
3177	3177	17 intangible expense or cost between the
3178	3178	18 taxpayer and the person did not have as a
3179	3179	19 principal purpose the avoidance of Illinois
3180	3180	20 income tax, and is paid pursuant to a contract
3181	3181	21 or agreement that reflects arm's-length terms;
3182	3182	22 or
3183	3183	23 (iii) any item of intangible expense or cost
3184	3184	24 paid, accrued, or incurred, directly or
3185	3185	25 indirectly, from a transaction with a person if
3186	3186	26 the taxpayer establishes by clear and convincing
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191
3192	3192	SB0089 - 88 - LRB104 03295 HLH 13317 b
3193	3193
3194	3194
3195	3195	SB0089- 89 -LRB104 03295 HLH 13317 b SB0089 - 89 - LRB104 03295 HLH 13317 b
3196	3196	SB0089 - 89 - LRB104 03295 HLH 13317 b
3197	3197	1 evidence, that the adjustments are unreasonable;
3198	3198	2 or if the taxpayer and the Director agree in
3199	3199	3 writing to the application or use of an
3200	3200	4 alternative method of apportionment under Section
3201	3201	5 304(f);
3202	3202	6 Nothing in this subsection shall preclude the
3203	3203	7 Director from making any other adjustment
3204	3204	8 otherwise allowed under Section 404 of this Act
3205	3205	9 for any tax year beginning after the effective
3206	3206	10 date of this amendment provided such adjustment is
3207	3207	11 made pursuant to regulation adopted by the
3208	3208	12 Department and such regulations provide methods
3209	3209	13 and standards by which the Department will utilize
3210	3210	14 its authority under Section 404 of this Act;
3211	3211	15 (D-9) For taxable years ending on or after
3212	3212	16 December 31, 2008, an amount equal to the amount of
3213	3213	17 insurance premium expenses and costs otherwise allowed
3214	3214	18 as a deduction in computing base income, and that were
3215	3215	19 paid, accrued, or incurred, directly or indirectly, to
3216	3216	20 a person who would be a member of the same unitary
3217	3217	21 business group but for the fact that the person is
3218	3218	22 prohibited under Section 1501(a)(27) from being
3219	3219	23 included in the unitary business group because he or
3220	3220	24 she is ordinarily required to apportion business
3221	3221	25 income under different subsections of Section 304. The
3222	3222	26 addition modification required by this subparagraph
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227
3228	3228	SB0089 - 89 - LRB104 03295 HLH 13317 b
3229	3229
3230	3230
3231	3231	SB0089- 90 -LRB104 03295 HLH 13317 b SB0089 - 90 - LRB104 03295 HLH 13317 b
3232	3232	SB0089 - 90 - LRB104 03295 HLH 13317 b
3233	3233	1 shall be reduced to the extent that dividends were
3234	3234	2 included in base income of the unitary group for the
3235	3235	3 same taxable year and received by the taxpayer or by a
3236	3236	4 member of the taxpayer's unitary business group
3237	3237	5 (including amounts included in gross income under
3238	3238	6 Sections 951 through 964 of the Internal Revenue Code
3239	3239	7 and amounts included in gross income under Section 78
3240	3240	8 of the Internal Revenue Code) with respect to the
3241	3241	9 stock of the same person to whom the premiums and costs
3242	3242	10 were directly or indirectly paid, incurred, or
3243	3243	11 accrued. The preceding sentence does not apply to the
3244	3244	12 extent that the same dividends caused a reduction to
3245	3245	13 the addition modification required under Section
3246	3246	14 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
3247	3247	15 (D-10) An amount equal to the credit allowable to
3248	3248	16 the taxpayer under Section 218(a) of this Act,
3249	3249	17 determined without regard to Section 218(c) of this
3250	3250	18 Act;
3251	3251	19 (D-11) For taxable years ending on or after
3252	3252	20 December 31, 2017, an amount equal to the deduction
3253	3253	21 allowed under Section 199 of the Internal Revenue Code
3254	3254	22 for the taxable year;
3255	3255	23 (D-12) the amount that is claimed as a federal
3256	3256	24 deduction when computing the taxpayer's federal
3257	3257	25 taxable income for the taxable year and that is
3258	3258	26 attributable to an endowment gift for which the
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263
3264	3264	SB0089 - 90 - LRB104 03295 HLH 13317 b
3265	3265
3266	3266
3267	3267	SB0089- 91 -LRB104 03295 HLH 13317 b SB0089 - 91 - LRB104 03295 HLH 13317 b
3268	3268	SB0089 - 91 - LRB104 03295 HLH 13317 b
3269	3269	1 taxpayer receives a credit under the Illinois Gives
3270	3270	2 Tax Credit Act;
3271	3271	3 and by deducting from the total so obtained the following
3272	3272	4 amounts:
3273	3273	5 (E) The valuation limitation amount;
3274	3274	6 (F) An amount equal to the amount of any tax
3275	3275	7 imposed by this Act which was refunded to the taxpayer
3276	3276	8 and included in such total for the taxable year;
3277	3277	9 (G) An amount equal to all amounts included in
3278	3278	10 taxable income as modified by subparagraphs (A), (B),
3279	3279	11 (C) and (D) which are exempt from taxation by this
3280	3280	12 State either by reason of its statutes or Constitution
3281	3281	13 or by reason of the Constitution, treaties or statutes
3282	3282	14 of the United States; provided that, in the case of any
3283	3283	15 statute of this State that exempts income derived from
3284	3284	16 bonds or other obligations from the tax imposed under
3285	3285	17 this Act, the amount exempted shall be the interest
3286	3286	18 net of bond premium amortization;
3287	3287	19 (H) Any income of the partnership which
3288	3288	20 constitutes personal service income as defined in
3289	3289	21 Section 1348(b)(1) of the Internal Revenue Code (as in
3290	3290	22 effect December 31, 1981) or a reasonable allowance
3291	3291	23 for compensation paid or accrued for services rendered
3292	3292	24 by partners to the partnership, whichever is greater;
3293	3293	25 this subparagraph (H) is exempt from the provisions of
3294	3294	26 Section 250;
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299
3300	3300	SB0089 - 91 - LRB104 03295 HLH 13317 b
3301	3301
3302	3302
3303	3303	SB0089- 92 -LRB104 03295 HLH 13317 b SB0089 - 92 - LRB104 03295 HLH 13317 b
3304	3304	SB0089 - 92 - LRB104 03295 HLH 13317 b
3305	3305	1 (I) An amount equal to all amounts of income
3306	3306	2 distributable to an entity subject to the Personal
3307	3307	3 Property Tax Replacement Income Tax imposed by
3308	3308	4 subsections (c) and (d) of Section 201 of this Act
3309	3309	5 including amounts distributable to organizations
3310	3310	6 exempt from federal income tax by reason of Section
3311	3311	7 501(a) of the Internal Revenue Code; this subparagraph
3312	3312	8 (I) is exempt from the provisions of Section 250;
3313	3313	9 (J) With the exception of any amounts subtracted
3314	3314	10 under subparagraph (G), an amount equal to the sum of
3315	3315	11 all amounts disallowed as deductions by (i) Sections
3316	3316	12 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3317	3317	13 and all amounts of expenses allocable to interest and
3318	3318	14 disallowed as deductions by Section 265(a)(1) of the
3319	3319	15 Internal Revenue Code; and (ii) for taxable years
3320	3320	16 ending on or after August 13, 1999, Sections
3321	3321	17 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3322	3322	18 Internal Revenue Code, plus, (iii) for taxable years
3323	3323	19 ending on or after December 31, 2011, Section
3324	3324	20 45G(e)(3) of the Internal Revenue Code and, for
3325	3325	21 taxable years ending on or after December 31, 2008,
3326	3326	22 any amount included in gross income under Section 87
3327	3327	23 of the Internal Revenue Code; the provisions of this
3328	3328	24 subparagraph are exempt from the provisions of Section
3329	3329	25 250;
3330	3330	26 (K) An amount equal to those dividends included in
3331	3331
3332	3332
3333	3333
3334	3334
3335	3335
3336	3336	SB0089 - 92 - LRB104 03295 HLH 13317 b
3337	3337
3338	3338
3339	3339	SB0089- 93 -LRB104 03295 HLH 13317 b SB0089 - 93 - LRB104 03295 HLH 13317 b
3340	3340	SB0089 - 93 - LRB104 03295 HLH 13317 b
3341	3341	1 such total which were paid by a corporation which
3342	3342	2 conducts business operations in a River Edge
3343	3343	3 Redevelopment Zone or zones created under the River
3344	3344	4 Edge Redevelopment Zone Act and conducts substantially
3345	3345	5 all of its operations from a River Edge Redevelopment
3346	3346	6 Zone or zones. This subparagraph (K) is exempt from
3347	3347	7 the provisions of Section 250;
3348	3348	8 (L) An amount equal to any contribution made to a
3349	3349	9 job training project established pursuant to the Real
3350	3350	10 Property Tax Increment Allocation Redevelopment Act;
3351	3351	11 (M) An amount equal to those dividends included in
3352	3352	12 such total that were paid by a corporation that
3353	3353	13 conducts business operations in a federally designated
3354	3354	14 Foreign Trade Zone or Sub-Zone and that is designated
3355	3355	15 a High Impact Business located in Illinois; provided
3356	3356	16 that dividends eligible for the deduction provided in
3357	3357	17 subparagraph (K) of paragraph (2) of this subsection
3358	3358	18 shall not be eligible for the deduction provided under
3359	3359	19 this subparagraph (M);
3360	3360	20 (N) An amount equal to the amount of the deduction
3361	3361	21 used to compute the federal income tax credit for
3362	3362	22 restoration of substantial amounts held under claim of
3363	3363	23 right for the taxable year pursuant to Section 1341 of
3364	3364	24 the Internal Revenue Code;
3365	3365	25 (O) For taxable years 2001 and thereafter, for the
3366	3366	26 taxable year in which the bonus depreciation deduction
3367	3367
3368	3368
3369	3369
3370	3370
3371	3371
3372	3372	SB0089 - 93 - LRB104 03295 HLH 13317 b
3373	3373
3374	3374
3375	3375	SB0089- 94 -LRB104 03295 HLH 13317 b SB0089 - 94 - LRB104 03295 HLH 13317 b
3376	3376	SB0089 - 94 - LRB104 03295 HLH 13317 b
3377	3377	1 is taken on the taxpayer's federal income tax return
3378	3378	2 under subsection (k) of Section 168 of the Internal
3379	3379	3 Revenue Code and for each applicable taxable year
3380	3380	4 thereafter, an amount equal to "x", where:
3381	3381	5 (1) "y" equals the amount of the depreciation
3382	3382	6 deduction taken for the taxable year on the
3383	3383	7 taxpayer's federal income tax return on property
3384	3384	8 for which the bonus depreciation deduction was
3385	3385	9 taken in any year under subsection (k) of Section
3386	3386	10 168 of the Internal Revenue Code, but not
3387	3387	11 including the bonus depreciation deduction;
3388	3388	12 (2) for taxable years ending on or before
3389	3389	13 December 31, 2005, "x" equals "y" multiplied by 30
3390	3390	14 and then divided by 70 (or "y" multiplied by
3391	3391	15 0.429); and
3392	3392	16 (3) for taxable years ending after December
3393	3393	17 31, 2005:
3394	3394	18 (i) for property on which a bonus
3395	3395	19 depreciation deduction of 30% of the adjusted
3396	3396	20 basis was taken, "x" equals "y" multiplied by
3397	3397	21 30 and then divided by 70 (or "y" multiplied
3398	3398	22 by 0.429);
3399	3399	23 (ii) for property on which a bonus
3400	3400	24 depreciation deduction of 50% of the adjusted
3401	3401	25 basis was taken, "x" equals "y" multiplied by
3402	3402	26 1.0;
3403	3403
3404	3404
3405	3405
3406	3406
3407	3407
3408	3408	SB0089 - 94 - LRB104 03295 HLH 13317 b
3409	3409
3410	3410
3411	3411	SB0089- 95 -LRB104 03295 HLH 13317 b SB0089 - 95 - LRB104 03295 HLH 13317 b
3412	3412	SB0089 - 95 - LRB104 03295 HLH 13317 b
3413	3413	1 (iii) for property on which a bonus
3414	3414	2 depreciation deduction of 100% of the adjusted
3415	3415	3 basis was taken in a taxable year ending on or
3416	3416	4 after December 31, 2021, "x" equals the
3417	3417	5 depreciation deduction that would be allowed
3418	3418	6 on that property if the taxpayer had made the
3419	3419	7 election under Section 168(k)(7) of the
3420	3420	8 Internal Revenue Code to not claim bonus
3421	3421	9 depreciation on that property; and
3422	3422	10 (iv) for property on which a bonus
3423	3423	11 depreciation deduction of a percentage other
3424	3424	12 than 30%, 50% or 100% of the adjusted basis
3425	3425	13 was taken in a taxable year ending on or after
3426	3426	14 December 31, 2021, "x" equals "y" multiplied
3427	3427	15 by 100 times the percentage bonus depreciation
3428	3428	16 on the property (that is, 100(bonus%)) and
3429	3429	17 then divided by 100 times 1 minus the
3430	3430	18 percentage bonus depreciation on the property
3431	3431	19 (that is, 100(1-bonus%)).
3432	3432	20 The aggregate amount deducted under this
3433	3433	21 subparagraph in all taxable years for any one piece of
3434	3434	22 property may not exceed the amount of the bonus
3435	3435	23 depreciation deduction taken on that property on the
3436	3436	24 taxpayer's federal income tax return under subsection
3437	3437	25 (k) of Section 168 of the Internal Revenue Code. This
3438	3438	26 subparagraph (O) is exempt from the provisions of
3439	3439
3440	3440
3441	3441
3442	3442
3443	3443
3444	3444	SB0089 - 95 - LRB104 03295 HLH 13317 b
3445	3445
3446	3446
3447	3447	SB0089- 96 -LRB104 03295 HLH 13317 b SB0089 - 96 - LRB104 03295 HLH 13317 b
3448	3448	SB0089 - 96 - LRB104 03295 HLH 13317 b
3449	3449	1 Section 250;
3450	3450	2 (P) If the taxpayer sells, transfers, abandons, or
3451	3451	3 otherwise disposes of property for which the taxpayer
3452	3452	4 was required in any taxable year to make an addition
3453	3453	5 modification under subparagraph (D-5), then an amount
3454	3454	6 equal to that addition modification.
3455	3455	7 If the taxpayer continues to own property through
3456	3456	8 the last day of the last tax year for which a
3457	3457	9 subtraction is allowed with respect to that property
3458	3458	10 under subparagraph (O) and for which the taxpayer was
3459	3459	11 required in any taxable year to make an addition
3460	3460	12 modification under subparagraph (D-5), then an amount
3461	3461	13 equal to that addition modification.
3462	3462	14 The taxpayer is allowed to take the deduction
3463	3463	15 under this subparagraph only once with respect to any
3464	3464	16 one piece of property.
3465	3465	17 This subparagraph (P) is exempt from the
3466	3466	18 provisions of Section 250;
3467	3467	19 (Q) The amount of (i) any interest income (net of
3468	3468	20 the deductions allocable thereto) taken into account
3469	3469	21 for the taxable year with respect to a transaction
3470	3470	22 with a taxpayer that is required to make an addition
3471	3471	23 modification with respect to such transaction under
3472	3472	24 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3473	3473	25 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3474	3474	26 the amount of such addition modification and (ii) any
3475	3475
3476	3476
3477	3477
3478	3478
3479	3479
3480	3480	SB0089 - 96 - LRB104 03295 HLH 13317 b
3481	3481
3482	3482
3483	3483	SB0089- 97 -LRB104 03295 HLH 13317 b SB0089 - 97 - LRB104 03295 HLH 13317 b
3484	3484	SB0089 - 97 - LRB104 03295 HLH 13317 b
3485	3485	1 income from intangible property (net of the deductions
3486	3486	2 allocable thereto) taken into account for the taxable
3487	3487	3 year with respect to a transaction with a taxpayer
3488	3488	4 that is required to make an addition modification with
3489	3489	5 respect to such transaction under Section
3490	3490	6 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3491	3491	7 203(d)(2)(D-8), but not to exceed the amount of such
3492	3492	8 addition modification. This subparagraph (Q) is exempt
3493	3493	9 from Section 250;
3494	3494	10 (R) An amount equal to the interest income taken
3495	3495	11 into account for the taxable year (net of the
3496	3496	12 deductions allocable thereto) with respect to
3497	3497	13 transactions with (i) a foreign person who would be a
3498	3498	14 member of the taxpayer's unitary business group but
3499	3499	15 for the fact that the foreign person's business
3500	3500	16 activity outside the United States is 80% or more of
3501	3501	17 that person's total business activity and (ii) for
3502	3502	18 taxable years ending on or after December 31, 2008, to
3503	3503	19 a person who would be a member of the same unitary
3504	3504	20 business group but for the fact that the person is
3505	3505	21 prohibited under Section 1501(a)(27) from being
3506	3506	22 included in the unitary business group because he or
3507	3507	23 she is ordinarily required to apportion business
3508	3508	24 income under different subsections of Section 304, but
3509	3509	25 not to exceed the addition modification required to be
3510	3510	26 made for the same taxable year under Section
3511	3511
3512	3512
3513	3513
3514	3514
3515	3515
3516	3516	SB0089 - 97 - LRB104 03295 HLH 13317 b
3517	3517
3518	3518
3519	3519	SB0089- 98 -LRB104 03295 HLH 13317 b SB0089 - 98 - LRB104 03295 HLH 13317 b
3520	3520	SB0089 - 98 - LRB104 03295 HLH 13317 b
3521	3521	1 203(d)(2)(D-7) for interest paid, accrued, or
3522	3522	2 incurred, directly or indirectly, to the same person.
3523	3523	3 This subparagraph (R) is exempt from Section 250;
3524	3524	4 (S) An amount equal to the income from intangible
3525	3525	5 property taken into account for the taxable year (net
3526	3526	6 of the deductions allocable thereto) with respect to
3527	3527	7 transactions with (i) a foreign person who would be a
3528	3528	8 member of the taxpayer's unitary business group but
3529	3529	9 for the fact that the foreign person's business
3530	3530	10 activity outside the United States is 80% or more of
3531	3531	11 that person's total business activity and (ii) for
3532	3532	12 taxable years ending on or after December 31, 2008, to
3533	3533	13 a person who would be a member of the same unitary
3534	3534	14 business group but for the fact that the person is
3535	3535	15 prohibited under Section 1501(a)(27) from being
3536	3536	16 included in the unitary business group because he or
3537	3537	17 she is ordinarily required to apportion business
3538	3538	18 income under different subsections of Section 304, but
3539	3539	19 not to exceed the addition modification required to be
3540	3540	20 made for the same taxable year under Section
3541	3541	21 203(d)(2)(D-8) for intangible expenses and costs paid,
3542	3542	22 accrued, or incurred, directly or indirectly, to the
3543	3543	23 same person. This subparagraph (S) is exempt from
3544	3544	24 Section 250;
3545	3545	25 (T) For taxable years ending on or after December
3546	3546	26 31, 2011, in the case of a taxpayer who was required to
3547	3547
3548	3548
3549	3549
3550	3550
3551	3551
3552	3552	SB0089 - 98 - LRB104 03295 HLH 13317 b
3553	3553
3554	3554
3555	3555	SB0089- 99 -LRB104 03295 HLH 13317 b SB0089 - 99 - LRB104 03295 HLH 13317 b
3556	3556	SB0089 - 99 - LRB104 03295 HLH 13317 b
3557	3557	1 add back any insurance premiums under Section
3558	3558	2 203(d)(2)(D-9), such taxpayer may elect to subtract
3559	3559	3 that part of a reimbursement received from the
3560	3560	4 insurance company equal to the amount of the expense
3561	3561	5 or loss (including expenses incurred by the insurance
3562	3562	6 company) that would have been taken into account as a
3563	3563	7 deduction for federal income tax purposes if the
3564	3564	8 expense or loss had been uninsured. If a taxpayer
3565	3565	9 makes the election provided for by this subparagraph
3566	3566	10 (T), the insurer to which the premiums were paid must
3567	3567	11 add back to income the amount subtracted by the
3568	3568	12 taxpayer pursuant to this subparagraph (T). This
3569	3569	13 subparagraph (T) is exempt from the provisions of
3570	3570	14 Section 250; and
3571	3571	15 (U) For taxable years beginning on or after
3572	3572	16 January 1, 2023, for any cannabis establishment
3573	3573	17 operating in this State and licensed under the
3574	3574	18 Cannabis Regulation and Tax Act or any cannabis
3575	3575	19 cultivation center or medical cannabis dispensing
3576	3576	20 organization operating in this State and licensed
3577	3577	21 under the Compassionate Use of Medical Cannabis
3578	3578	22 Program Act, an amount equal to the deductions that
3579	3579	23 were disallowed under Section 280E of the Internal
3580	3580	24 Revenue Code for the taxable year and that would not be
3581	3581	25 added back under this subsection. The provisions of
3582	3582	26 this subparagraph (U) are exempt from the provisions
3583	3583
3584	3584
3585	3585
3586	3586
3587	3587
3588	3588	SB0089 - 99 - LRB104 03295 HLH 13317 b
3589	3589
3590	3590
3591	3591	SB0089- 100 -LRB104 03295 HLH 13317 b SB0089 - 100 - LRB104 03295 HLH 13317 b
3592	3592	SB0089 - 100 - LRB104 03295 HLH 13317 b
3593	3593	1 of Section 250.
3594	3594	2 (e) Gross income; adjusted gross income; taxable income.
3595	3595	3 (1) In general. Subject to the provisions of paragraph
3596	3596	4 (2) and subsection (b)(3), for purposes of this Section
3597	3597	5 and Section 803(e), a taxpayer's gross income, adjusted
3598	3598	6 gross income, or taxable income for the taxable year shall
3599	3599	7 mean the amount of gross income, adjusted gross income or
3600	3600	8 taxable income properly reportable for federal income tax
3601	3601	9 purposes for the taxable year under the provisions of the
3602	3602	10 Internal Revenue Code. Taxable income may be less than
3603	3603	11 zero. However, for taxable years ending on or after
3604	3604	12 December 31, 1986, net operating loss carryforwards from
3605	3605	13 taxable years ending prior to December 31, 1986, may not
3606	3606	14 exceed the sum of federal taxable income for the taxable
3607	3607	15 year before net operating loss deduction, plus the excess
3608	3608	16 of addition modifications over subtraction modifications
3609	3609	17 for the taxable year. For taxable years ending prior to
3610	3610	18 December 31, 1986, taxable income may never be an amount
3611	3611	19 in excess of the net operating loss for the taxable year as
3612	3612	20 defined in subsections (c) and (d) of Section 172 of the
3613	3613	21 Internal Revenue Code, provided that when taxable income
3614	3614	22 of a corporation (other than a Subchapter S corporation),
3615	3615	23 trust, or estate is less than zero and addition
3616	3616	24 modifications, other than those provided by subparagraph
3617	3617	25 (E) of paragraph (2) of subsection (b) for corporations or
3618	3618
3619	3619
3620	3620
3621	3621
3622	3622
3623	3623	SB0089 - 100 - LRB104 03295 HLH 13317 b
3624	3624
3625	3625
3626	3626	SB0089- 101 -LRB104 03295 HLH 13317 b SB0089 - 101 - LRB104 03295 HLH 13317 b
3627	3627	SB0089 - 101 - LRB104 03295 HLH 13317 b
3628	3628	1 subparagraph (E) of paragraph (2) of subsection (c) for
3629	3629	2 trusts and estates, exceed subtraction modifications, an
3630	3630	3 addition modification must be made under those
3631	3631	4 subparagraphs for any other taxable year to which the
3632	3632	5 taxable income less than zero (net operating loss) is
3633	3633	6 applied under Section 172 of the Internal Revenue Code or
3634	3634	7 under subparagraph (E) of paragraph (2) of this subsection
3635	3635	8 (e) applied in conjunction with Section 172 of the
3636	3636	9 Internal Revenue Code.
3637	3637	10 (2) Special rule. For purposes of paragraph (1) of
3638	3638	11 this subsection, the taxable income properly reportable
3639	3639	12 for federal income tax purposes shall mean:
3640	3640	13 (A) Certain life insurance companies. In the case
3641	3641	14 of a life insurance company subject to the tax imposed
3642	3642	15 by Section 801 of the Internal Revenue Code, life
3643	3643	16 insurance company taxable income, plus the amount of
3644	3644	17 distribution from pre-1984 policyholder surplus
3645	3645	18 accounts as calculated under Section 815a of the
3646	3646	19 Internal Revenue Code;
3647	3647	20 (B) Certain other insurance companies. In the case
3648	3648	21 of mutual insurance companies subject to the tax
3649	3649	22 imposed by Section 831 of the Internal Revenue Code,
3650	3650	23 insurance company taxable income;
3651	3651	24 (C) Regulated investment companies. In the case of
3652	3652	25 a regulated investment company subject to the tax
3653	3653	26 imposed by Section 852 of the Internal Revenue Code,
3654	3654
3655	3655
3656	3656
3657	3657
3658	3658
3659	3659	SB0089 - 101 - LRB104 03295 HLH 13317 b
3660	3660
3661	3661
3662	3662	SB0089- 102 -LRB104 03295 HLH 13317 b SB0089 - 102 - LRB104 03295 HLH 13317 b
3663	3663	SB0089 - 102 - LRB104 03295 HLH 13317 b
3664	3664	1 investment company taxable income;
3665	3665	2 (D) Real estate investment trusts. In the case of
3666	3666	3 a real estate investment trust subject to the tax
3667	3667	4 imposed by Section 857 of the Internal Revenue Code,
3668	3668	5 real estate investment trust taxable income;
3669	3669	6 (E) Consolidated corporations. In the case of a
3670	3670	7 corporation which is a member of an affiliated group
3671	3671	8 of corporations filing a consolidated income tax
3672	3672	9 return for the taxable year for federal income tax
3673	3673	10 purposes, taxable income determined as if such
3674	3674	11 corporation had filed a separate return for federal
3675	3675	12 income tax purposes for the taxable year and each
3676	3676	13 preceding taxable year for which it was a member of an
3677	3677	14 affiliated group. For purposes of this subparagraph,
3678	3678	15 the taxpayer's separate taxable income shall be
3679	3679	16 determined as if the election provided by Section
3680	3680	17 243(b)(2) of the Internal Revenue Code had been in
3681	3681	18 effect for all such years;
3682	3682	19 (F) Cooperatives. In the case of a cooperative
3683	3683	20 corporation or association, the taxable income of such
3684	3684	21 organization determined in accordance with the
3685	3685	22 provisions of Section 1381 through 1388 of the
3686	3686	23 Internal Revenue Code, but without regard to the
3687	3687	24 prohibition against offsetting losses from patronage
3688	3688	25 activities against income from nonpatronage
3689	3689	26 activities; except that a cooperative corporation or
3690	3690
3691	3691
3692	3692
3693	3693
3694	3694
3695	3695	SB0089 - 102 - LRB104 03295 HLH 13317 b
3696	3696
3697	3697
3698	3698	SB0089- 103 -LRB104 03295 HLH 13317 b SB0089 - 103 - LRB104 03295 HLH 13317 b
3699	3699	SB0089 - 103 - LRB104 03295 HLH 13317 b
3700	3700	1 association may make an election to follow its federal
3701	3701	2 income tax treatment of patronage losses and
3702	3702	3 nonpatronage losses. In the event such election is
3703	3703	4 made, such losses shall be computed and carried over
3704	3704	5 in a manner consistent with subsection (a) of Section
3705	3705	6 207 of this Act and apportioned by the apportionment
3706	3706	7 factor reported by the cooperative on its Illinois
3707	3707	8 income tax return filed for the taxable year in which
3708	3708	9 the losses are incurred. The election shall be
3709	3709	10 effective for all taxable years with original returns
3710	3710	11 due on or after the date of the election. In addition,
3711	3711	12 the cooperative may file an amended return or returns,
3712	3712	13 as allowed under this Act, to provide that the
3713	3713	14 election shall be effective for losses incurred or
3714	3714	15 carried forward for taxable years occurring prior to
3715	3715	16 the date of the election. Once made, the election may
3716	3716	17 only be revoked upon approval of the Director. The
3717	3717	18 Department shall adopt rules setting forth
3718	3718	19 requirements for documenting the elections and any
3719	3719	20 resulting Illinois net loss and the standards to be
3720	3720	21 used by the Director in evaluating requests to revoke
3721	3721	22 elections. Public Act 96-932 is declaratory of
3722	3722	23 existing law;
3723	3723	24 (G) Subchapter S corporations. In the case of: (i)
3724	3724	25 a Subchapter S corporation for which there is in
3725	3725	26 effect an election for the taxable year under Section
3726	3726
3727	3727
3728	3728
3729	3729
3730	3730
3731	3731	SB0089 - 103 - LRB104 03295 HLH 13317 b
3732	3732
3733	3733
3734	3734	SB0089- 104 -LRB104 03295 HLH 13317 b SB0089 - 104 - LRB104 03295 HLH 13317 b
3735	3735	SB0089 - 104 - LRB104 03295 HLH 13317 b
3736	3736	1 1362 of the Internal Revenue Code, the taxable income
3737	3737	2 of such corporation determined in accordance with
3738	3738	3 Section 1363(b) of the Internal Revenue Code, except
3739	3739	4 that taxable income shall take into account those
3740	3740	5 items which are required by Section 1363(b)(1) of the
3741	3741	6 Internal Revenue Code to be separately stated; and
3742	3742	7 (ii) a Subchapter S corporation for which there is in
3743	3743	8 effect a federal election to opt out of the provisions
3744	3744	9 of the Subchapter S Revision Act of 1982 and have
3745	3745	10 applied instead the prior federal Subchapter S rules
3746	3746	11 as in effect on July 1, 1982, the taxable income of
3747	3747	12 such corporation determined in accordance with the
3748	3748	13 federal Subchapter S rules as in effect on July 1,
3749	3749	14 1982; and
3750	3750	15 (H) Partnerships. In the case of a partnership,
3751	3751	16 taxable income determined in accordance with Section
3752	3752	17 703 of the Internal Revenue Code, except that taxable
3753	3753	18 income shall take into account those items which are
3754	3754	19 required by Section 703(a)(1) to be separately stated
3755	3755	20 but which would be taken into account by an individual
3756	3756	21 in calculating his taxable income.
3757	3757	22 (3) Recapture of business expenses on disposition of
3758	3758	23 asset or business. Notwithstanding any other law to the
3759	3759	24 contrary, if in prior years income from an asset or
3760	3760	25 business has been classified as business income and in a
3761	3761	26 later year is demonstrated to be non-business income, then
3762	3762
3763	3763
3764	3764
3765	3765
3766	3766
3767	3767	SB0089 - 104 - LRB104 03295 HLH 13317 b
3768	3768
3769	3769
3770	3770	SB0089- 105 -LRB104 03295 HLH 13317 b SB0089 - 105 - LRB104 03295 HLH 13317 b
3771	3771	SB0089 - 105 - LRB104 03295 HLH 13317 b
3772	3772	1 all expenses, without limitation, deducted in such later
3773	3773	2 year and in the 2 immediately preceding taxable years
3774	3774	3 related to that asset or business that generated the
3775	3775	4 non-business income shall be added back and recaptured as
3776	3776	5 business income in the year of the disposition of the
3777	3777	6 asset or business. Such amount shall be apportioned to
3778	3778	7 Illinois using the greater of the apportionment fraction
3779	3779	8 computed for the business under Section 304 of this Act
3780	3780	9 for the taxable year or the average of the apportionment
3781	3781	10 fractions computed for the business under Section 304 of
3782	3782	11 this Act for the taxable year and for the 2 immediately
3783	3783	12 preceding taxable years.
3784	3784	13 (f) Valuation limitation amount.
3785	3785	14 (1) In general. The valuation limitation amount
3786	3786	15 referred to in subsections (a)(2)(G), (c)(2)(I) and
3787	3787	16 (d)(2)(E) is an amount equal to:
3788	3788	17 (A) The sum of the pre-August 1, 1969 appreciation
3789	3789	18 amounts (to the extent consisting of gain reportable
3790	3790	19 under the provisions of Section 1245 or 1250 of the
3791	3791	20 Internal Revenue Code) for all property in respect of
3792	3792	21 which such gain was reported for the taxable year;
3793	3793	22 plus
3794	3794	23 (B) The lesser of (i) the sum of the pre-August 1,
3795	3795	24 1969 appreciation amounts (to the extent consisting of
3796	3796	25 capital gain) for all property in respect of which
3797	3797
3798	3798
3799	3799
3800	3800
3801	3801
3802	3802	SB0089 - 105 - LRB104 03295 HLH 13317 b
3803	3803
3804	3804
3805	3805	SB0089- 106 -LRB104 03295 HLH 13317 b SB0089 - 106 - LRB104 03295 HLH 13317 b
3806	3806	SB0089 - 106 - LRB104 03295 HLH 13317 b
3807	3807	1 such gain was reported for federal income tax purposes
3808	3808	2 for the taxable year, or (ii) the net capital gain for
3809	3809	3 the taxable year, reduced in either case by any amount
3810	3810	4 of such gain included in the amount determined under
3811	3811	5 subsection (a)(2)(F) or (c)(2)(H).
3812	3812	6 (2) Pre-August 1, 1969 appreciation amount.
3813	3813	7 (A) If the fair market value of property referred
3814	3814	8 to in paragraph (1) was readily ascertainable on
3815	3815	9 August 1, 1969, the pre-August 1, 1969 appreciation
3816	3816	10 amount for such property is the lesser of (i) the
3817	3817	11 excess of such fair market value over the taxpayer's
3818	3818	12 basis (for determining gain) for such property on that
3819	3819	13 date (determined under the Internal Revenue Code as in
3820	3820	14 effect on that date), or (ii) the total gain realized
3821	3821	15 and reportable for federal income tax purposes in
3822	3822	16 respect of the sale, exchange or other disposition of
3823	3823	17 such property.
3824	3824	18 (B) If the fair market value of property referred
3825	3825	19 to in paragraph (1) was not readily ascertainable on
3826	3826	20 August 1, 1969, the pre-August 1, 1969 appreciation
3827	3827	21 amount for such property is that amount which bears
3828	3828	22 the same ratio to the total gain reported in respect of
3829	3829	23 the property for federal income tax purposes for the
3830	3830	24 taxable year, as the number of full calendar months in
3831	3831	25 that part of the taxpayer's holding period for the
3832	3832	26 property ending July 31, 1969 bears to the number of
3833	3833
3834	3834
3835	3835
3836	3836
3837	3837
3838	3838	SB0089 - 106 - LRB104 03295 HLH 13317 b
3839	3839
3840	3840
3841	3841	SB0089- 107 -LRB104 03295 HLH 13317 b SB0089 - 107 - LRB104 03295 HLH 13317 b
3842	3842	SB0089 - 107 - LRB104 03295 HLH 13317 b
3843	3843	1 full calendar months in the taxpayer's entire holding
3844	3844	2 period for the property.
3845	3845	3 (C) The Department shall prescribe such
3846	3846	4 regulations as may be necessary to carry out the
3847	3847	5 purposes of this paragraph.
3848	3848	6 (g) Double deductions. Unless specifically provided
3849	3849	7 otherwise, nothing in this Section shall permit the same item
3850	3850	8 to be deducted more than once.
3851	3851
3852	3852
3853	3853
3854	3854
3855	3855
3856	3856	SB0089 - 107 - LRB104 03295 HLH 13317 b