Illinois 2025-2026 Regular Session

Illinois Senate Bill SB0219 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0219 Introduced 1/22/2025, by Sen. Mike Porfirio SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 Amends the Illinois Income Tax Act. Creates an income tax deduction for taxpayers who are law enforcement officers in an amount equal to the amount of overtime compensation that is paid to the taxpayer during the taxable year for the taxpayer's service as a law enforcement officer and that is included in the taxpayer's federal adjusted gross income. Effective immediately. LRB104 07439 HLH 17480 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0219 Introduced 1/22/2025, by Sen. Mike Porfirio SYNOPSIS AS INTRODUCED: 35 ILCS 5/203 35 ILCS 5/203 Amends the Illinois Income Tax Act. Creates an income tax deduction for taxpayers who are law enforcement officers in an amount equal to the amount of overtime compensation that is paid to the taxpayer during the taxable year for the taxpayer's service as a law enforcement officer and that is included in the taxpayer's federal adjusted gross income. Effective immediately. LRB104 07439 HLH 17480 b LRB104 07439 HLH 17480 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0219 Introduced 1/22/2025, 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. Creates an income tax deduction for taxpayers who are law enforcement officers in an amount equal to the amount of overtime compensation that is paid to the taxpayer during the taxable year for the taxpayer's service as a law enforcement officer and that is included in the taxpayer's federal adjusted gross income. Effective immediately.
6	6	LRB104 07439 HLH 17480 b LRB104 07439 HLH 17480 b
7	7	LRB104 07439 HLH 17480 b
8	8	A BILL FOR
9	9	SB0219LRB104 07439 HLH 17480 b SB0219 LRB104 07439 HLH 17480 b
10	10	SB0219 LRB104 07439 HLH 17480 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
34	34
35	35
36	36
37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB0219 Introduced 1/22/2025, 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. Creates an income tax deduction for taxpayers who are law enforcement officers in an amount equal to the amount of overtime compensation that is paid to the taxpayer during the taxable year for the taxpayer's service as a law enforcement officer and that is included in the taxpayer's federal adjusted gross income. Effective immediately.
41	41	LRB104 07439 HLH 17480 b LRB104 07439 HLH 17480 b
42	42	LRB104 07439 HLH 17480 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	35 ILCS 5/203
50	50
51	51
52	52
53	53	LRB104 07439 HLH 17480 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	SB0219 LRB104 07439 HLH 17480 b
64	64
65	65
66	66	SB0219- 2 -LRB104 07439 HLH 17480 b SB0219 - 2 - LRB104 07439 HLH 17480 b
67	67	SB0219 - 2 - LRB104 07439 HLH 17480 b
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
94	94
95	95
96	96
97	97
98	98
99	99	SB0219 - 2 - LRB104 07439 HLH 17480 b
100	100
101	101
102	102	SB0219- 3 -LRB104 07439 HLH 17480 b SB0219 - 3 - LRB104 07439 HLH 17480 b
103	103	SB0219 - 3 - LRB104 07439 HLH 17480 b
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.
130	130
131	131
132	132
133	133
134	134
135	135	SB0219 - 3 - LRB104 07439 HLH 17480 b
136	136
137	137
138	138	SB0219- 4 -LRB104 07439 HLH 17480 b SB0219 - 4 - LRB104 07439 HLH 17480 b
139	139	SB0219 - 4 - LRB104 07439 HLH 17480 b
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
166	166
167	167
168	168
169	169
170	170
171	171	SB0219 - 4 - LRB104 07439 HLH 17480 b
172	172
173	173
174	174	SB0219- 5 -LRB104 07439 HLH 17480 b SB0219 - 5 - LRB104 07439 HLH 17480 b
175	175	SB0219 - 5 - LRB104 07439 HLH 17480 b
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
202	202
203	203
204	204
205	205
206	206
207	207	SB0219 - 5 - LRB104 07439 HLH 17480 b
208	208
209	209
210	210	SB0219- 6 -LRB104 07439 HLH 17480 b SB0219 - 6 - LRB104 07439 HLH 17480 b
211	211	SB0219 - 6 - LRB104 07439 HLH 17480 b
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
238	238
239	239
240	240
241	241
242	242
243	243	SB0219 - 6 - LRB104 07439 HLH 17480 b
244	244
245	245
246	246	SB0219- 7 -LRB104 07439 HLH 17480 b SB0219 - 7 - LRB104 07439 HLH 17480 b
247	247	SB0219 - 7 - LRB104 07439 HLH 17480 b
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
274	274
275	275
276	276
277	277
278	278
279	279	SB0219 - 7 - LRB104 07439 HLH 17480 b
280	280
281	281
282	282	SB0219- 8 -LRB104 07439 HLH 17480 b SB0219 - 8 - LRB104 07439 HLH 17480 b
283	283	SB0219 - 8 - LRB104 07439 HLH 17480 b
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
310	310
311	311
312	312
313	313
314	314
315	315	SB0219 - 8 - LRB104 07439 HLH 17480 b
316	316
317	317
318	318	SB0219- 9 -LRB104 07439 HLH 17480 b SB0219 - 9 - LRB104 07439 HLH 17480 b
319	319	SB0219 - 9 - LRB104 07439 HLH 17480 b
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
346	346
347	347
348	348
349	349
350	350
351	351	SB0219 - 9 - LRB104 07439 HLH 17480 b
352	352
353	353
354	354	SB0219- 10 -LRB104 07439 HLH 17480 b SB0219 - 10 - LRB104 07439 HLH 17480 b
355	355	SB0219 - 10 - LRB104 07439 HLH 17480 b
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
382	382
383	383
384	384
385	385
386	386
387	387	SB0219 - 10 - LRB104 07439 HLH 17480 b
388	388
389	389
390	390	SB0219- 11 -LRB104 07439 HLH 17480 b SB0219 - 11 - LRB104 07439 HLH 17480 b
391	391	SB0219 - 11 - LRB104 07439 HLH 17480 b
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
418	418
419	419
420	420
421	421
422	422
423	423	SB0219 - 11 - LRB104 07439 HLH 17480 b
424	424
425	425
426	426	SB0219- 12 -LRB104 07439 HLH 17480 b SB0219 - 12 - LRB104 07439 HLH 17480 b
427	427	SB0219 - 12 - LRB104 07439 HLH 17480 b
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
454	454
455	455
456	456
457	457
458	458
459	459	SB0219 - 12 - LRB104 07439 HLH 17480 b
460	460
461	461
462	462	SB0219- 13 -LRB104 07439 HLH 17480 b SB0219 - 13 - LRB104 07439 HLH 17480 b
463	463	SB0219 - 13 - LRB104 07439 HLH 17480 b
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
490	490
491	491
492	492
493	493
494	494
495	495	SB0219 - 13 - LRB104 07439 HLH 17480 b
496	496
497	497
498	498	SB0219- 14 -LRB104 07439 HLH 17480 b SB0219 - 14 - LRB104 07439 HLH 17480 b
499	499	SB0219 - 14 - LRB104 07439 HLH 17480 b
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	SB0219 - 14 - LRB104 07439 HLH 17480 b
532	532
533	533
534	534	SB0219- 15 -LRB104 07439 HLH 17480 b SB0219 - 15 - LRB104 07439 HLH 17480 b
535	535	SB0219 - 15 - LRB104 07439 HLH 17480 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	SB0219 - 15 - LRB104 07439 HLH 17480 b
568	568
569	569
570	570	SB0219- 16 -LRB104 07439 HLH 17480 b SB0219 - 16 - LRB104 07439 HLH 17480 b
571	571	SB0219 - 16 - LRB104 07439 HLH 17480 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 Armed Forces of the United
580	580	9 States and in respect of any compensation paid or
581	581	10 accrued to a resident who as a governmental employee
582	582	11 was a prisoner of war or missing in action, and in
583	583	12 respect of any compensation paid to a resident in 2001
584	584	13 or thereafter by reason of being a member of the
585	585	14 Illinois National Guard or, beginning with taxable
586	586	15 years ending on or after December 31, 2007, the
587	587	16 National Guard of any other state. The provisions of
588	588	17 this subparagraph (E) are exempt from the provisions
589	589	18 of Section 250;
590	590	19 (F) An amount equal to all amounts included in
591	591	20 such total pursuant to the provisions of Sections
592	592	21 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
593	593	22 408 of the Internal Revenue Code, or included in such
594	594	23 total as distributions under the provisions of any
595	595	24 retirement or disability plan for employees of any
596	596	25 governmental agency or unit, or retirement payments to
597	597	26 retired partners, which payments are excluded in
598	598
599	599
600	600
601	601
602	602
603	603	SB0219 - 16 - LRB104 07439 HLH 17480 b
604	604
605	605
606	606	SB0219- 17 -LRB104 07439 HLH 17480 b SB0219 - 17 - LRB104 07439 HLH 17480 b
607	607	SB0219 - 17 - LRB104 07439 HLH 17480 b
608	608	1 computing net earnings from self employment by Section
609	609	2 1402 of the Internal Revenue Code and regulations
610	610	3 adopted pursuant thereto;
611	611	4 (G) The valuation limitation amount;
612	612	5 (H) An amount equal to the amount of any tax
613	613	6 imposed by this Act which was refunded to the taxpayer
614	614	7 and included in such total for the taxable year;
615	615	8 (I) An amount equal to all amounts included in
616	616	9 such total pursuant to the provisions of Section 111
617	617	10 of the Internal Revenue Code as a recovery of items
618	618	11 previously deducted from adjusted gross income in the
619	619	12 computation of taxable income;
620	620	13 (J) An amount equal to those dividends included in
621	621	14 such total which were paid by a corporation which
622	622	15 conducts business operations in a River Edge
623	623	16 Redevelopment Zone or zones created under the River
624	624	17 Edge Redevelopment Zone Act, and conducts
625	625	18 substantially all of its operations in a River Edge
626	626	19 Redevelopment Zone or zones. This subparagraph (J) is
627	627	20 exempt from the provisions of Section 250;
628	628	21 (K) An amount equal to those dividends included in
629	629	22 such total that were paid by a corporation that
630	630	23 conducts business operations in a federally designated
631	631	24 Foreign Trade Zone or Sub-Zone and that is designated
632	632	25 a High Impact Business located in Illinois; provided
633	633	26 that dividends eligible for the deduction provided in
634	634
635	635
636	636
637	637
638	638
639	639	SB0219 - 17 - LRB104 07439 HLH 17480 b
640	640
641	641
642	642	SB0219- 18 -LRB104 07439 HLH 17480 b SB0219 - 18 - LRB104 07439 HLH 17480 b
643	643	SB0219 - 18 - LRB104 07439 HLH 17480 b
644	644	1 subparagraph (J) of paragraph (2) of this subsection
645	645	2 shall not be eligible for the deduction provided under
646	646	3 this subparagraph (K);
647	647	4 (L) For taxable years ending after December 31,
648	648	5 1983, an amount equal to all social security benefits
649	649	6 and railroad retirement benefits included in such
650	650	7 total pursuant to Sections 72(r) and 86 of the
651	651	8 Internal Revenue Code;
652	652	9 (M) With the exception of any amounts subtracted
653	653	10 under subparagraph (N), an amount equal to the sum of
654	654	11 all amounts disallowed as deductions by (i) Sections
655	655	12 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
656	656	13 and all amounts of expenses allocable to interest and
657	657	14 disallowed as deductions by Section 265(a)(1) of the
658	658	15 Internal Revenue Code; and (ii) for taxable years
659	659	16 ending on or after August 13, 1999, Sections
660	660	17 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
661	661	18 Internal Revenue Code, plus, for taxable years ending
662	662	19 on or after December 31, 2011, Section 45G(e)(3) of
663	663	20 the Internal Revenue Code and, for taxable years
664	664	21 ending on or after December 31, 2008, any amount
665	665	22 included in gross income under Section 87 of the
666	666	23 Internal Revenue Code; the provisions of this
667	667	24 subparagraph are exempt from the provisions of Section
668	668	25 250;
669	669	26 (N) An amount equal to all amounts included in
670	670
671	671
672	672
673	673
674	674
675	675	SB0219 - 18 - LRB104 07439 HLH 17480 b
676	676
677	677
678	678	SB0219- 19 -LRB104 07439 HLH 17480 b SB0219 - 19 - LRB104 07439 HLH 17480 b
679	679	SB0219 - 19 - LRB104 07439 HLH 17480 b
680	680	1 such total which are exempt from taxation by this
681	681	2 State either by reason of its statutes or Constitution
682	682	3 or by reason of the Constitution, treaties or statutes
683	683	4 of the United States; provided that, in the case of any
684	684	5 statute of this State that exempts income derived from
685	685	6 bonds or other obligations from the tax imposed under
686	686	7 this Act, the amount exempted shall be the interest
687	687	8 net of bond premium amortization;
688	688	9 (O) An amount equal to any contribution made to a
689	689	10 job training project established pursuant to the Tax
690	690	11 Increment Allocation Redevelopment Act;
691	691	12 (P) An amount equal to the amount of the deduction
692	692	13 used to compute the federal income tax credit for
693	693	14 restoration of substantial amounts held under claim of
694	694	15 right for the taxable year pursuant to Section 1341 of
695	695	16 the Internal Revenue Code or of any itemized deduction
696	696	17 taken from adjusted gross income in the computation of
697	697	18 taxable income for restoration of substantial amounts
698	698	19 held under claim of right for the taxable year;
699	699	20 (Q) An amount equal to any amounts included in
700	700	21 such total, received by the taxpayer as an
701	701	22 acceleration in the payment of life, endowment or
702	702	23 annuity benefits in advance of the time they would
703	703	24 otherwise be payable as an indemnity for a terminal
704	704	25 illness;
705	705	26 (R) An amount equal to the amount of any federal or
706	706
707	707
708	708
709	709
710	710
711	711	SB0219 - 19 - LRB104 07439 HLH 17480 b
712	712
713	713
714	714	SB0219- 20 -LRB104 07439 HLH 17480 b SB0219 - 20 - LRB104 07439 HLH 17480 b
715	715	SB0219 - 20 - LRB104 07439 HLH 17480 b
716	716	1 State bonus paid to veterans of the Persian Gulf War;
717	717	2 (S) An amount, to the extent included in adjusted
718	718	3 gross income, equal to the amount of a contribution
719	719	4 made in the taxable year on behalf of the taxpayer to a
720	720	5 medical care savings account established under the
721	721	6 Medical Care Savings Account Act or the Medical Care
722	722	7 Savings Account Act of 2000 to the extent the
723	723	8 contribution is accepted by the account administrator
724	724	9 as provided in that Act;
725	725	10 (T) An amount, to the extent included in adjusted
726	726	11 gross income, equal to the amount of interest earned
727	727	12 in the taxable year on a medical care savings account
728	728	13 established under the Medical Care Savings Account Act
729	729	14 or the Medical Care Savings Account Act of 2000 on
730	730	15 behalf of the taxpayer, other than interest added
731	731	16 pursuant to item (D-5) of this paragraph (2);
732	732	17 (U) For one taxable year beginning on or after
733	733	18 January 1, 1994, an amount equal to the total amount of
734	734	19 tax imposed and paid under subsections (a) and (b) of
735	735	20 Section 201 of this Act on grant amounts received by
736	736	21 the taxpayer under the Nursing Home Grant Assistance
737	737	22 Act during the taxpayer's taxable years 1992 and 1993;
738	738	23 (V) Beginning with tax years ending on or after
739	739	24 December 31, 1995 and ending with tax years ending on
740	740	25 or before December 31, 2004, an amount equal to the
741	741	26 amount paid by a taxpayer who is a self-employed
742	742
743	743
744	744
745	745
746	746
747	747	SB0219 - 20 - LRB104 07439 HLH 17480 b
748	748
749	749
750	750	SB0219- 21 -LRB104 07439 HLH 17480 b SB0219 - 21 - LRB104 07439 HLH 17480 b
751	751	SB0219 - 21 - LRB104 07439 HLH 17480 b
752	752	1 taxpayer, a partner of a partnership, or a shareholder
753	753	2 in a Subchapter S corporation for health insurance or
754	754	3 long-term care insurance for that taxpayer or that
755	755	4 taxpayer's spouse or dependents, to the extent that
756	756	5 the amount paid for that health insurance or long-term
757	757	6 care insurance may be deducted under Section 213 of
758	758	7 the Internal Revenue Code, has not been deducted on
759	759	8 the federal income tax return of the taxpayer, and
760	760	9 does not exceed the taxable income attributable to
761	761	10 that taxpayer's income, self-employment income, or
762	762	11 Subchapter S corporation income; except that no
763	763	12 deduction shall be allowed under this item (V) if the
764	764	13 taxpayer is eligible to participate in any health
765	765	14 insurance or long-term care insurance plan of an
766	766	15 employer of the taxpayer or the taxpayer's spouse. The
767	767	16 amount of the health insurance and long-term care
768	768	17 insurance subtracted under this item (V) shall be
769	769	18 determined by multiplying total health insurance and
770	770	19 long-term care insurance premiums paid by the taxpayer
771	771	20 times a number that represents the fractional
772	772	21 percentage of eligible medical expenses under Section
773	773	22 213 of the Internal Revenue Code of 1986 not actually
774	774	23 deducted on the taxpayer's federal income tax return;
775	775	24 (W) For taxable years beginning on or after
776	776	25 January 1, 1998, all amounts included in the
777	777	26 taxpayer's federal gross income in the taxable year
778	778
779	779
780	780
781	781
782	782
783	783	SB0219 - 21 - LRB104 07439 HLH 17480 b
784	784
785	785
786	786	SB0219- 22 -LRB104 07439 HLH 17480 b SB0219 - 22 - LRB104 07439 HLH 17480 b
787	787	SB0219 - 22 - LRB104 07439 HLH 17480 b
788	788	1 from amounts converted from a regular IRA to a Roth
789	789	2 IRA. This paragraph is exempt from the provisions of
790	790	3 Section 250;
791	791	4 (X) For taxable year 1999 and thereafter, an
792	792	5 amount equal to the amount of any (i) distributions,
793	793	6 to the extent includible in gross income for federal
794	794	7 income tax purposes, made to the taxpayer because of
795	795	8 his or her status as a victim of persecution for racial
796	796	9 or religious reasons by Nazi Germany or any other Axis
797	797	10 regime or as an heir of the victim and (ii) items of
798	798	11 income, to the extent includible in gross income for
799	799	12 federal income tax purposes, attributable to, derived
800	800	13 from or in any way related to assets stolen from,
801	801	14 hidden from, or otherwise lost to a victim of
802	802	15 persecution for racial or religious reasons by Nazi
803	803	16 Germany or any other Axis regime immediately prior to,
804	804	17 during, and immediately after World War II, including,
805	805	18 but not limited to, interest on the proceeds
806	806	19 receivable as insurance under policies issued to a
807	807	20 victim of persecution for racial or religious reasons
808	808	21 by Nazi Germany or any other Axis regime by European
809	809	22 insurance companies immediately prior to and during
810	810	23 World War II; provided, however, this subtraction from
811	811	24 federal adjusted gross income does not apply to assets
812	812	25 acquired with such assets or with the proceeds from
813	813	26 the sale of such assets; provided, further, this
814	814
815	815
816	816
817	817
818	818
819	819	SB0219 - 22 - LRB104 07439 HLH 17480 b
820	820
821	821
822	822	SB0219- 23 -LRB104 07439 HLH 17480 b SB0219 - 23 - LRB104 07439 HLH 17480 b
823	823	SB0219 - 23 - LRB104 07439 HLH 17480 b
824	824	1 paragraph shall only apply to a taxpayer who was the
825	825	2 first recipient of such assets after their recovery
826	826	3 and who is a victim of persecution for racial or
827	827	4 religious reasons by Nazi Germany or any other Axis
828	828	5 regime or as an heir of the victim. The amount of and
829	829	6 the eligibility for any public assistance, benefit, or
830	830	7 similar entitlement is not affected by the inclusion
831	831	8 of items (i) and (ii) of this paragraph in gross income
832	832	9 for federal income tax purposes. This paragraph is
833	833	10 exempt from the provisions of Section 250;
834	834	11 (Y) For taxable years beginning on or after
835	835	12 January 1, 2002 and ending on or before December 31,
836	836	13 2004, moneys contributed in the taxable year to a
837	837	14 College Savings Pool account under Section 16.5 of the
838	838	15 State Treasurer Act, except that amounts excluded from
839	839	16 gross income under Section 529(c)(3)(C)(i) of the
840	840	17 Internal Revenue Code shall not be considered moneys
841	841	18 contributed under this subparagraph (Y). For taxable
842	842	19 years beginning on or after January 1, 2005, a maximum
843	843	20 of $10,000 contributed in the taxable year to (i) a
844	844	21 College Savings Pool account under Section 16.5 of the
845	845	22 State Treasurer Act or (ii) the Illinois Prepaid
846	846	23 Tuition Trust Fund, except that amounts excluded from
847	847	24 gross income under Section 529(c)(3)(C)(i) of the
848	848	25 Internal Revenue Code shall not be considered moneys
849	849	26 contributed under this subparagraph (Y). For purposes
850	850
851	851
852	852
853	853
854	854
855	855	SB0219 - 23 - LRB104 07439 HLH 17480 b
856	856
857	857
858	858	SB0219- 24 -LRB104 07439 HLH 17480 b SB0219 - 24 - LRB104 07439 HLH 17480 b
859	859	SB0219 - 24 - LRB104 07439 HLH 17480 b
860	860	1 of this subparagraph, contributions made by an
861	861	2 employer on behalf of an employee, or matching
862	862	3 contributions made by an employee, shall be treated as
863	863	4 made by the employee. This subparagraph (Y) is exempt
864	864	5 from the provisions of Section 250;
865	865	6 (Z) For taxable years 2001 and thereafter, for the
866	866	7 taxable year in which the bonus depreciation deduction
867	867	8 is taken on the taxpayer's federal income tax return
868	868	9 under subsection (k) of Section 168 of the Internal
869	869	10 Revenue Code and for each applicable taxable year
870	870	11 thereafter, an amount equal to "x", where:
871	871	12 (1) "y" equals the amount of the depreciation
872	872	13 deduction taken for the taxable year on the
873	873	14 taxpayer's federal income tax return on property
874	874	15 for which the bonus depreciation deduction was
875	875	16 taken in any year under subsection (k) of Section
876	876	17 168 of the Internal Revenue Code, but not
877	877	18 including the bonus depreciation deduction;
878	878	19 (2) for taxable years ending on or before
879	879	20 December 31, 2005, "x" equals "y" multiplied by 30
880	880	21 and then divided by 70 (or "y" multiplied by
881	881	22 0.429); and
882	882	23 (3) for taxable years ending after December
883	883	24 31, 2005:
884	884	25 (i) for property on which a bonus
885	885	26 depreciation deduction of 30% of the adjusted
886	886
887	887
888	888
889	889
890	890
891	891	SB0219 - 24 - LRB104 07439 HLH 17480 b
892	892
893	893
894	894	SB0219- 25 -LRB104 07439 HLH 17480 b SB0219 - 25 - LRB104 07439 HLH 17480 b
895	895	SB0219 - 25 - LRB104 07439 HLH 17480 b
896	896	1 basis was taken, "x" equals "y" multiplied by
897	897	2 30 and then divided by 70 (or "y" multiplied
898	898	3 by 0.429);
899	899	4 (ii) for property on which a bonus
900	900	5 depreciation deduction of 50% of the adjusted
901	901	6 basis was taken, "x" equals "y" multiplied by
902	902	7 1.0;
903	903	8 (iii) for property on which a bonus
904	904	9 depreciation deduction of 100% of the adjusted
905	905	10 basis was taken in a taxable year ending on or
906	906	11 after December 31, 2021, "x" equals the
907	907	12 depreciation deduction that would be allowed
908	908	13 on that property if the taxpayer had made the
909	909	14 election under Section 168(k)(7) of the
910	910	15 Internal Revenue Code to not claim bonus
911	911	16 depreciation on that property; and
912	912	17 (iv) for property on which a bonus
913	913	18 depreciation deduction of a percentage other
914	914	19 than 30%, 50% or 100% of the adjusted basis
915	915	20 was taken in a taxable year ending on or after
916	916	21 December 31, 2021, "x" equals "y" multiplied
917	917	22 by 100 times the percentage bonus depreciation
918	918	23 on the property (that is, 100(bonus%)) and
919	919	24 then divided by 100 times 1 minus the
920	920	25 percentage bonus depreciation on the property
921	921	26 (that is, 100(1-bonus%)).
922	922
923	923
924	924
925	925
926	926
927	927	SB0219 - 25 - LRB104 07439 HLH 17480 b
928	928
929	929
930	930	SB0219- 26 -LRB104 07439 HLH 17480 b SB0219 - 26 - LRB104 07439 HLH 17480 b
931	931	SB0219 - 26 - LRB104 07439 HLH 17480 b
932	932	1 The aggregate amount deducted under this
933	933	2 subparagraph in all taxable years for any one piece of
934	934	3 property may not exceed the amount of the bonus
935	935	4 depreciation deduction taken on that property on the
936	936	5 taxpayer's federal income tax return under subsection
937	937	6 (k) of Section 168 of the Internal Revenue Code. This
938	938	7 subparagraph (Z) is exempt from the provisions of
939	939	8 Section 250;
940	940	9 (AA) If the taxpayer sells, transfers, abandons,
941	941	10 or otherwise disposes of property for which the
942	942	11 taxpayer was required in any taxable year to make an
943	943	12 addition modification under subparagraph (D-15), then
944	944	13 an amount equal to that addition modification.
945	945	14 If the taxpayer continues to own property through
946	946	15 the last day of the last tax year for which a
947	947	16 subtraction is allowed with respect to that property
948	948	17 under subparagraph (Z) and for which the taxpayer was
949	949	18 required in any taxable year to make an addition
950	950	19 modification under subparagraph (D-15), then an amount
951	951	20 equal to that addition modification.
952	952	21 The taxpayer is allowed to take the deduction
953	953	22 under this subparagraph only once with respect to any
954	954	23 one piece of property.
955	955	24 This subparagraph (AA) is exempt from the
956	956	25 provisions of Section 250;
957	957	26 (BB) Any amount included in adjusted gross income,
958	958
959	959
960	960
961	961
962	962
963	963	SB0219 - 26 - LRB104 07439 HLH 17480 b
964	964
965	965
966	966	SB0219- 27 -LRB104 07439 HLH 17480 b SB0219 - 27 - LRB104 07439 HLH 17480 b
967	967	SB0219 - 27 - LRB104 07439 HLH 17480 b
968	968	1 other than salary, received by a driver in a
969	969	2 ridesharing arrangement using a motor vehicle;
970	970	3 (CC) The amount of (i) any interest income (net of
971	971	4 the deductions allocable thereto) taken into account
972	972	5 for the taxable year with respect to a transaction
973	973	6 with a taxpayer that is required to make an addition
974	974	7 modification with respect to such transaction under
975	975	8 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
976	976	9 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
977	977	10 the amount of that addition modification, and (ii) any
978	978	11 income from intangible property (net of the deductions
979	979	12 allocable thereto) taken into account for the taxable
980	980	13 year with respect to a transaction with a taxpayer
981	981	14 that is required to make an addition modification with
982	982	15 respect to such transaction under Section
983	983	16 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
984	984	17 203(d)(2)(D-8), but not to exceed the amount of that
985	985	18 addition modification. This subparagraph (CC) is
986	986	19 exempt from the provisions of Section 250;
987	987	20 (DD) An amount equal to the interest income taken
988	988	21 into account for the taxable year (net of the
989	989	22 deductions allocable thereto) with respect to
990	990	23 transactions with (i) a foreign person who would be a
991	991	24 member of the taxpayer's unitary business group but
992	992	25 for the fact that the foreign person's business
993	993	26 activity outside the United States is 80% or more of
994	994
995	995
996	996
997	997
998	998
999	999	SB0219 - 27 - LRB104 07439 HLH 17480 b
1000	1000
1001	1001
1002	1002	SB0219- 28 -LRB104 07439 HLH 17480 b SB0219 - 28 - LRB104 07439 HLH 17480 b
1003	1003	SB0219 - 28 - LRB104 07439 HLH 17480 b
1004	1004	1 that person's total business activity and (ii) for
1005	1005	2 taxable years ending on or after December 31, 2008, to
1006	1006	3 a person who would be a member of the same unitary
1007	1007	4 business group but for the fact that the person is
1008	1008	5 prohibited under Section 1501(a)(27) from being
1009	1009	6 included in the unitary business group because he or
1010	1010	7 she is ordinarily required to apportion business
1011	1011	8 income under different subsections of Section 304, but
1012	1012	9 not to exceed the addition modification required to be
1013	1013	10 made for the same taxable year under Section
1014	1014	11 203(a)(2)(D-17) for interest paid, accrued, or
1015	1015	12 incurred, directly or indirectly, to the same person.
1016	1016	13 This subparagraph (DD) is exempt from the provisions
1017	1017	14 of Section 250;
1018	1018	15 (EE) An amount equal to the income from intangible
1019	1019	16 property taken into account for the taxable year (net
1020	1020	17 of the deductions allocable thereto) with respect to
1021	1021	18 transactions with (i) a foreign person who would be a
1022	1022	19 member of the taxpayer's unitary business group but
1023	1023	20 for the fact that the foreign person's business
1024	1024	21 activity outside the United States is 80% or more of
1025	1025	22 that person's total business activity and (ii) for
1026	1026	23 taxable years ending on or after December 31, 2008, to
1027	1027	24 a person who would be a member of the same unitary
1028	1028	25 business group but for the fact that the person is
1029	1029	26 prohibited under Section 1501(a)(27) from being
1030	1030
1031	1031
1032	1032
1033	1033
1034	1034
1035	1035	SB0219 - 28 - LRB104 07439 HLH 17480 b
1036	1036
1037	1037
1038	1038	SB0219- 29 -LRB104 07439 HLH 17480 b SB0219 - 29 - LRB104 07439 HLH 17480 b
1039	1039	SB0219 - 29 - LRB104 07439 HLH 17480 b
1040	1040	1 included in the unitary business group because he or
1041	1041	2 she is ordinarily required to apportion business
1042	1042	3 income under different subsections of Section 304, but
1043	1043	4 not to exceed the addition modification required to be
1044	1044	5 made for the same taxable year under Section
1045	1045	6 203(a)(2)(D-18) for intangible expenses and costs
1046	1046	7 paid, accrued, or incurred, directly or indirectly, to
1047	1047	8 the same foreign person. This subparagraph (EE) is
1048	1048	9 exempt from the provisions of Section 250;
1049	1049	10 (FF) An amount equal to any amount awarded to the
1050	1050	11 taxpayer during the taxable year by the Court of
1051	1051	12 Claims under subsection (c) of Section 8 of the Court
1052	1052	13 of Claims Act for time unjustly served in a State
1053	1053	14 prison. This subparagraph (FF) is exempt from the
1054	1054	15 provisions of Section 250;
1055	1055	16 (GG) For taxable years ending on or after December
1056	1056	17 31, 2011, in the case of a taxpayer who was required to
1057	1057	18 add back any insurance premiums under Section
1058	1058	19 203(a)(2)(D-19), such taxpayer may elect to subtract
1059	1059	20 that part of a reimbursement received from the
1060	1060	21 insurance company equal to the amount of the expense
1061	1061	22 or loss (including expenses incurred by the insurance
1062	1062	23 company) that would have been taken into account as a
1063	1063	24 deduction for federal income tax purposes if the
1064	1064	25 expense or loss had been uninsured. If a taxpayer
1065	1065	26 makes the election provided for by this subparagraph
1066	1066
1067	1067
1068	1068
1069	1069
1070	1070
1071	1071	SB0219 - 29 - LRB104 07439 HLH 17480 b
1072	1072
1073	1073
1074	1074	SB0219- 30 -LRB104 07439 HLH 17480 b SB0219 - 30 - LRB104 07439 HLH 17480 b
1075	1075	SB0219 - 30 - LRB104 07439 HLH 17480 b
1076	1076	1 (GG), the insurer to which the premiums were paid must
1077	1077	2 add back to income the amount subtracted by the
1078	1078	3 taxpayer pursuant to this subparagraph (GG). This
1079	1079	4 subparagraph (GG) is exempt from the provisions of
1080	1080	5 Section 250;
1081	1081	6 (HH) For taxable years beginning on or after
1082	1082	7 January 1, 2018 and prior to January 1, 2028, a maximum
1083	1083	8 of $10,000 contributed in the taxable year to a
1084	1084	9 qualified ABLE account under Section 16.6 of the State
1085	1085	10 Treasurer Act, except that amounts excluded from gross
1086	1086	11 income under Section 529(c)(3)(C)(i) or Section
1087	1087	12 529A(c)(1)(C) of the Internal Revenue Code shall not
1088	1088	13 be considered moneys contributed under this
1089	1089	14 subparagraph (HH). For purposes of this subparagraph
1090	1090	15 (HH), contributions made by an employer on behalf of
1091	1091	16 an employee, or matching contributions made by an
1092	1092	17 employee, shall be treated as made by the employee;
1093	1093	18 (II) For taxable years that begin on or after
1094	1094	19 January 1, 2021 and begin before January 1, 2026, the
1095	1095	20 amount that is included in the taxpayer's federal
1096	1096	21 adjusted gross income pursuant to Section 61 of the
1097	1097	22 Internal Revenue Code as discharge of indebtedness
1098	1098	23 attributable to student loan forgiveness and that is
1099	1099	24 not excluded from the taxpayer's federal adjusted
1100	1100	25 gross income pursuant to paragraph (5) of subsection
1101	1101	26 (f) of Section 108 of the Internal Revenue Code;
1102	1102
1103	1103
1104	1104
1105	1105
1106	1106
1107	1107	SB0219 - 30 - LRB104 07439 HLH 17480 b
1108	1108
1109	1109
1110	1110	SB0219- 31 -LRB104 07439 HLH 17480 b SB0219 - 31 - LRB104 07439 HLH 17480 b
1111	1111	SB0219 - 31 - LRB104 07439 HLH 17480 b
1112	1112	1 (JJ) For taxable years beginning on or after
1113	1113	2 January 1, 2023, for any cannabis establishment
1114	1114	3 operating in this State and licensed under the
1115	1115	4 Cannabis Regulation and Tax Act or any cannabis
1116	1116	5 cultivation center or medical cannabis dispensing
1117	1117	6 organization operating in this State and licensed
1118	1118	7 under the Compassionate Use of Medical Cannabis
1119	1119	8 Program Act, an amount equal to the deductions that
1120	1120	9 were disallowed under Section 280E of the Internal
1121	1121	10 Revenue Code for the taxable year and that would not be
1122	1122	11 added back under this subsection. The provisions of
1123	1123	12 this subparagraph (JJ) are exempt from the provisions
1124	1124	13 of Section 250; and
1125	1125	14 (KK) To the extent includible in gross income for
1126	1126	15 federal income tax purposes, any amount awarded or
1127	1127	16 paid to the taxpayer as a result of a judgment or
1128	1128	17 settlement for fertility fraud as provided in Section
1129	1129	18 15 of the Illinois Fertility Fraud Act, donor
1130	1130	19 fertility fraud as provided in Section 20 of the
1131	1131	20 Illinois Fertility Fraud Act, or similar action in
1132	1132	21 another state; and
1133	1133	22 (LL) For taxable years beginning on or after
1134	1134	23 January 1, 2026, if the taxpayer is a qualified
1135	1135	24 worker, as defined in the Workforce Development
1136	1136	25 through Charitable Loan Repayment Act, an amount equal
1137	1137	26 to the amount included in the taxpayer's federal
1138	1138
1139	1139
1140	1140
1141	1141
1142	1142
1143	1143	SB0219 - 31 - LRB104 07439 HLH 17480 b
1144	1144
1145	1145
1146	1146	SB0219- 32 -LRB104 07439 HLH 17480 b SB0219 - 32 - LRB104 07439 HLH 17480 b
1147	1147	SB0219 - 32 - LRB104 07439 HLH 17480 b
1148	1148	1 adjusted gross income that is attributable to student
1149	1149	2 loan repayment assistance received by the taxpayer
1150	1150	3 during the taxable year from a qualified community
1151	1151	4 foundation under the provisions of the Workforce
1152	1152	5 Development through Through Charitable Loan Repayment
1153	1153	6 Act.
1154	1154	7 This subparagraph (LL) is exempt from the
1155	1155	8 provisions of Section 250; .
1156	1156	9 (MM) (LL) For taxable years beginning on or after
1157	1157	10 January 1, 2025, if the taxpayer is an eligible
1158	1158	11 resident as defined in the Medical Debt Relief Act, an
1159	1159	12 amount equal to the amount included in the taxpayer's
1160	1160	13 federal adjusted gross income that is attributable to
1161	1161	14 medical debt relief received by the taxpayer during
1162	1162	15 the taxable year from a nonprofit medical debt relief
1163	1163	16 coordinator under the provisions of the Medical Debt
1164	1164	17 Relief Act. This subparagraph (MM) (LL) is exempt from
1165	1165	18 the provisions of Section 250; and .
1166	1166	19 (NN) For taxable years beginning on or after
1167	1167	20 January 1, 2026, if the taxpayer is a law enforcement
1168	1168	21 officer, an amount equal to the amount of overtime
1169	1169	22 compensation that is paid to the taxpayer during the
1170	1170	23 taxable year for the taxpayer's service as a law
1171	1171	24 enforcement officer and that is included in the
1172	1172	25 taxpayer's federal adjusted gross income; as used in
1173	1173	26 this subparagraph (NN), "law enforcement officer"
1174	1174
1175	1175
1176	1176
1177	1177
1178	1178
1179	1179	SB0219 - 32 - LRB104 07439 HLH 17480 b
1180	1180
1181	1181
1182	1182	SB0219- 33 -LRB104 07439 HLH 17480 b SB0219 - 33 - LRB104 07439 HLH 17480 b
1183	1183	SB0219 - 33 - LRB104 07439 HLH 17480 b
1184	1184	1 means any person employed by a State, county, or
1185	1185	2 municipality as a policeman, as a peace officer, or in
1186	1186	3 a like position involving the enforcement of the law
1187	1187	4 and the protection of the public interest; as used in
1188	1188	5 this subparagraph (NN), "overtime compensation" has
1189	1189	6 the meaning given to that term in the federal Fair
1190	1190	7 Labor Standards Act; this subparagraph (NN) is exempt
1191	1191	8 from the provisions of Section 250.
1192	1192	9 (b) Corporations.
1193	1193	10 (1) In general. In the case of a corporation, base
1194	1194	11 income means an amount equal to the taxpayer's taxable
1195	1195	12 income for the taxable year as modified by paragraph (2).
1196	1196	13 (2) Modifications. The taxable income referred to in
1197	1197	14 paragraph (1) shall be modified by adding thereto the sum
1198	1198	15 of the following amounts:
1199	1199	16 (A) An amount equal to all amounts paid or accrued
1200	1200	17 to the taxpayer as interest and all distributions
1201	1201	18 received from regulated investment companies during
1202	1202	19 the taxable year to the extent excluded from gross
1203	1203	20 income in the computation of taxable income;
1204	1204	21 (B) An amount equal to the amount of tax imposed by
1205	1205	22 this Act to the extent deducted from gross income in
1206	1206	23 the computation of taxable income for the taxable
1207	1207	24 year;
1208	1208	25 (C) In the case of a regulated investment company,
1209	1209
1210	1210
1211	1211
1212	1212
1213	1213
1214	1214	SB0219 - 33 - LRB104 07439 HLH 17480 b
1215	1215
1216	1216
1217	1217	SB0219- 34 -LRB104 07439 HLH 17480 b SB0219 - 34 - LRB104 07439 HLH 17480 b
1218	1218	SB0219 - 34 - LRB104 07439 HLH 17480 b
1219	1219	1 an amount equal to the excess of (i) the net long-term
1220	1220	2 capital gain for the taxable year, over (ii) the
1221	1221	3 amount of the capital gain dividends designated as
1222	1222	4 such in accordance with Section 852(b)(3)(C) of the
1223	1223	5 Internal Revenue Code and any amount designated under
1224	1224	6 Section 852(b)(3)(D) of the Internal Revenue Code,
1225	1225	7 attributable to the taxable year (this amendatory Act
1226	1226	8 of 1995 (Public Act 89-89) is declarative of existing
1227	1227	9 law and is not a new enactment);
1228	1228	10 (D) The amount of any net operating loss deduction
1229	1229	11 taken in arriving at taxable income, other than a net
1230	1230	12 operating loss carried forward from a taxable year
1231	1231	13 ending prior to December 31, 1986;
1232	1232	14 (E) For taxable years in which a net operating
1233	1233	15 loss carryback or carryforward from a taxable year
1234	1234	16 ending prior to December 31, 1986 is an element of
1235	1235	17 taxable income under paragraph (1) of subsection (e)
1236	1236	18 or subparagraph (E) of paragraph (2) of subsection
1237	1237	19 (e), the amount by which addition modifications other
1238	1238	20 than those provided by this subparagraph (E) exceeded
1239	1239	21 subtraction modifications in such earlier taxable
1240	1240	22 year, with the following limitations applied in the
1241	1241	23 order that they are listed:
1242	1242	24 (i) the addition modification relating to the
1243	1243	25 net operating loss carried back or forward to the
1244	1244	26 taxable year from any taxable year ending prior to
1245	1245
1246	1246
1247	1247
1248	1248
1249	1249
1250	1250	SB0219 - 34 - LRB104 07439 HLH 17480 b
1251	1251
1252	1252
1253	1253	SB0219- 35 -LRB104 07439 HLH 17480 b SB0219 - 35 - LRB104 07439 HLH 17480 b
1254	1254	SB0219 - 35 - LRB104 07439 HLH 17480 b
1255	1255	1 December 31, 1986 shall be reduced by the amount
1256	1256	2 of addition modification under this subparagraph
1257	1257	3 (E) which related to that net operating loss and
1258	1258	4 which was taken into account in calculating the
1259	1259	5 base income of an earlier taxable year, and
1260	1260	6 (ii) the addition modification relating to the
1261	1261	7 net operating loss carried back or forward to the
1262	1262	8 taxable year from any taxable year ending prior to
1263	1263	9 December 31, 1986 shall not exceed the amount of
1264	1264	10 such carryback or carryforward;
1265	1265	11 For taxable years in which there is a net
1266	1266	12 operating loss carryback or carryforward from more
1267	1267	13 than one other taxable year ending prior to December
1268	1268	14 31, 1986, the addition modification provided in this
1269	1269	15 subparagraph (E) shall be the sum of the amounts
1270	1270	16 computed independently under the preceding provisions
1271	1271	17 of this subparagraph (E) for each such taxable year;
1272	1272	18 (E-5) For taxable years ending after December 31,
1273	1273	19 1997, an amount equal to any eligible remediation
1274	1274	20 costs that the corporation deducted in computing
1275	1275	21 adjusted gross income and for which the corporation
1276	1276	22 claims a credit under subsection (l) of Section 201;
1277	1277	23 (E-10) For taxable years 2001 and thereafter, an
1278	1278	24 amount equal to the bonus depreciation deduction taken
1279	1279	25 on the taxpayer's federal income tax return for the
1280	1280	26 taxable year under subsection (k) of Section 168 of
1281	1281
1282	1282
1283	1283
1284	1284
1285	1285
1286	1286	SB0219 - 35 - LRB104 07439 HLH 17480 b
1287	1287
1288	1288
1289	1289	SB0219- 36 -LRB104 07439 HLH 17480 b SB0219 - 36 - LRB104 07439 HLH 17480 b
1290	1290	SB0219 - 36 - LRB104 07439 HLH 17480 b
1291	1291	1 the Internal Revenue Code;
1292	1292	2 (E-11) If the taxpayer sells, transfers, abandons,
1293	1293	3 or otherwise disposes of property for which the
1294	1294	4 taxpayer was required in any taxable year to make an
1295	1295	5 addition modification under subparagraph (E-10), then
1296	1296	6 an amount equal to the aggregate amount of the
1297	1297	7 deductions taken in all taxable years under
1298	1298	8 subparagraph (T) with respect to that property.
1299	1299	9 If the taxpayer continues to own property through
1300	1300	10 the last day of the last tax year for which a
1301	1301	11 subtraction is allowed with respect to that property
1302	1302	12 under subparagraph (T) and for which the taxpayer was
1303	1303	13 allowed in any taxable year to make a subtraction
1304	1304	14 modification under subparagraph (T), then an amount
1305	1305	15 equal to that subtraction modification.
1306	1306	16 The taxpayer is required to make the addition
1307	1307	17 modification under this subparagraph only once with
1308	1308	18 respect to any one piece of property;
1309	1309	19 (E-12) An amount equal to the amount otherwise
1310	1310	20 allowed as a deduction in computing base income for
1311	1311	21 interest paid, accrued, or incurred, directly or
1312	1312	22 indirectly, (i) for taxable years ending on or after
1313	1313	23 December 31, 2004, to a foreign person who would be a
1314	1314	24 member of the same unitary business group but for the
1315	1315	25 fact the foreign person's business activity outside
1316	1316	26 the United States is 80% or more of the foreign
1317	1317
1318	1318
1319	1319
1320	1320
1321	1321
1322	1322	SB0219 - 36 - LRB104 07439 HLH 17480 b
1323	1323
1324	1324
1325	1325	SB0219- 37 -LRB104 07439 HLH 17480 b SB0219 - 37 - LRB104 07439 HLH 17480 b
1326	1326	SB0219 - 37 - LRB104 07439 HLH 17480 b
1327	1327	1 person's total business activity and (ii) for taxable
1328	1328	2 years ending on or after December 31, 2008, to a person
1329	1329	3 who would be a member of the same unitary business
1330	1330	4 group but for the fact that the person is prohibited
1331	1331	5 under Section 1501(a)(27) from being included in the
1332	1332	6 unitary business group because he or she is ordinarily
1333	1333	7 required to apportion business income under different
1334	1334	8 subsections of Section 304. The addition modification
1335	1335	9 required by this subparagraph shall be reduced to the
1336	1336	10 extent that dividends were included in base income of
1337	1337	11 the unitary group for the same taxable year and
1338	1338	12 received by the taxpayer or by a member of the
1339	1339	13 taxpayer's unitary business group (including amounts
1340	1340	14 included in gross income pursuant to Sections 951
1341	1341	15 through 964 of the Internal Revenue Code and amounts
1342	1342	16 included in gross income under Section 78 of the
1343	1343	17 Internal Revenue Code) with respect to the stock of
1344	1344	18 the same person to whom the interest was paid,
1345	1345	19 accrued, or incurred.
1346	1346	20 This paragraph shall not apply to the following:
1347	1347	21 (i) an item of interest paid, accrued, or
1348	1348	22 incurred, directly or indirectly, to a person who
1349	1349	23 is subject in a foreign country or state, other
1350	1350	24 than a state which requires mandatory unitary
1351	1351	25 reporting, to a tax on or measured by net income
1352	1352	26 with respect to such interest; or
1353	1353
1354	1354
1355	1355
1356	1356
1357	1357
1358	1358	SB0219 - 37 - LRB104 07439 HLH 17480 b
1359	1359
1360	1360
1361	1361	SB0219- 38 -LRB104 07439 HLH 17480 b SB0219 - 38 - LRB104 07439 HLH 17480 b
1362	1362	SB0219 - 38 - LRB104 07439 HLH 17480 b
1363	1363	1 (ii) an item of interest paid, accrued, or
1364	1364	2 incurred, directly or indirectly, to a person if
1365	1365	3 the taxpayer can establish, based on a
1366	1366	4 preponderance of the evidence, both of the
1367	1367	5 following:
1368	1368	6 (a) the person, during the same taxable
1369	1369	7 year, paid, accrued, or incurred, the interest
1370	1370	8 to a person that is not a related member, and
1371	1371	9 (b) the transaction giving rise to the
1372	1372	10 interest expense between the taxpayer and the
1373	1373	11 person did not have as a principal purpose the
1374	1374	12 avoidance of Illinois income tax, and is paid
1375	1375	13 pursuant to a contract or agreement that
1376	1376	14 reflects an arm's-length interest rate and
1377	1377	15 terms; or
1378	1378	16 (iii) the taxpayer can establish, based on
1379	1379	17 clear and convincing evidence, that the interest
1380	1380	18 paid, accrued, or incurred relates to a contract
1381	1381	19 or agreement entered into at arm's-length rates
1382	1382	20 and terms and the principal purpose for the
1383	1383	21 payment is not federal or Illinois tax avoidance;
1384	1384	22 or
1385	1385	23 (iv) an item of interest paid, accrued, or
1386	1386	24 incurred, directly or indirectly, to a person if
1387	1387	25 the taxpayer establishes by clear and convincing
1388	1388	26 evidence that the adjustments are unreasonable; or
1389	1389
1390	1390
1391	1391
1392	1392
1393	1393
1394	1394	SB0219 - 38 - LRB104 07439 HLH 17480 b
1395	1395
1396	1396
1397	1397	SB0219- 39 -LRB104 07439 HLH 17480 b SB0219 - 39 - LRB104 07439 HLH 17480 b
1398	1398	SB0219 - 39 - LRB104 07439 HLH 17480 b
1399	1399	1 if the taxpayer and the Director agree in writing
1400	1400	2 to the application or use of an alternative method
1401	1401	3 of apportionment under Section 304(f).
1402	1402	4 Nothing in this subsection shall preclude the
1403	1403	5 Director from making any other adjustment
1404	1404	6 otherwise allowed under Section 404 of this Act
1405	1405	7 for any tax year beginning after the effective
1406	1406	8 date of this amendment provided such adjustment is
1407	1407	9 made pursuant to regulation adopted by the
1408	1408	10 Department and such regulations provide methods
1409	1409	11 and standards by which the Department will utilize
1410	1410	12 its authority under Section 404 of this Act;
1411	1411	13 (E-13) An amount equal to the amount of intangible
1412	1412	14 expenses and costs otherwise allowed as a deduction in
1413	1413	15 computing base income, and that were paid, accrued, or
1414	1414	16 incurred, directly or indirectly, (i) for taxable
1415	1415	17 years ending on or after December 31, 2004, to a
1416	1416	18 foreign person who would be a member of the same
1417	1417	19 unitary business group but for the fact that the
1418	1418	20 foreign person's business activity outside the United
1419	1419	21 States is 80% or more of that person's total business
1420	1420	22 activity and (ii) for taxable years ending on or after
1421	1421	23 December 31, 2008, to a person who would be a member of
1422	1422	24 the same unitary business group but for the fact that
1423	1423	25 the person is prohibited under Section 1501(a)(27)
1424	1424	26 from being included in the unitary business group
1425	1425
1426	1426
1427	1427
1428	1428
1429	1429
1430	1430	SB0219 - 39 - LRB104 07439 HLH 17480 b
1431	1431
1432	1432
1433	1433	SB0219- 40 -LRB104 07439 HLH 17480 b SB0219 - 40 - LRB104 07439 HLH 17480 b
1434	1434	SB0219 - 40 - LRB104 07439 HLH 17480 b
1435	1435	1 because he or she is ordinarily required to apportion
1436	1436	2 business income under different subsections of Section
1437	1437	3 304. The addition modification required by this
1438	1438	4 subparagraph shall be reduced to the extent that
1439	1439	5 dividends were included in base income of the unitary
1440	1440	6 group for the same taxable year and received by the
1441	1441	7 taxpayer or by a member of the taxpayer's unitary
1442	1442	8 business group (including amounts included in gross
1443	1443	9 income pursuant to Sections 951 through 964 of the
1444	1444	10 Internal Revenue Code and amounts included in gross
1445	1445	11 income under Section 78 of the Internal Revenue Code)
1446	1446	12 with respect to the stock of the same person to whom
1447	1447	13 the intangible expenses and costs were directly or
1448	1448	14 indirectly paid, incurred, or accrued. The preceding
1449	1449	15 sentence shall not apply to the extent that the same
1450	1450	16 dividends caused a reduction to the addition
1451	1451	17 modification required under Section 203(b)(2)(E-12) of
1452	1452	18 this Act. As used in this subparagraph, the term
1453	1453	19 "intangible expenses and costs" includes (1) expenses,
1454	1454	20 losses, and costs for, or related to, the direct or
1455	1455	21 indirect acquisition, use, maintenance or management,
1456	1456	22 ownership, sale, exchange, or any other disposition of
1457	1457	23 intangible property; (2) losses incurred, directly or
1458	1458	24 indirectly, from factoring transactions or discounting
1459	1459	25 transactions; (3) royalty, patent, technical, and
1460	1460	26 copyright fees; (4) licensing fees; and (5) other
1461	1461
1462	1462
1463	1463
1464	1464
1465	1465
1466	1466	SB0219 - 40 - LRB104 07439 HLH 17480 b
1467	1467
1468	1468
1469	1469	SB0219- 41 -LRB104 07439 HLH 17480 b SB0219 - 41 - LRB104 07439 HLH 17480 b
1470	1470	SB0219 - 41 - LRB104 07439 HLH 17480 b
1471	1471	1 similar expenses and costs. For purposes of this
1472	1472	2 subparagraph, "intangible property" includes patents,
1473	1473	3 patent applications, trade names, trademarks, service
1474	1474	4 marks, copyrights, mask works, trade secrets, and
1475	1475	5 similar types of intangible assets.
1476	1476	6 This paragraph shall not apply to the following:
1477	1477	7 (i) any item of intangible expenses or costs
1478	1478	8 paid, accrued, or incurred, directly or
1479	1479	9 indirectly, from a transaction with a person who
1480	1480	10 is subject in a foreign country or state, other
1481	1481	11 than a state which requires mandatory unitary
1482	1482	12 reporting, to a tax on or measured by net income
1483	1483	13 with respect to such item; or
1484	1484	14 (ii) any item of intangible expense or cost
1485	1485	15 paid, accrued, or incurred, directly or
1486	1486	16 indirectly, if the taxpayer can establish, based
1487	1487	17 on a preponderance of the evidence, both of the
1488	1488	18 following:
1489	1489	19 (a) the person during the same taxable
1490	1490	20 year paid, accrued, or incurred, the
1491	1491	21 intangible expense or cost to a person that is
1492	1492	22 not a related member, and
1493	1493	23 (b) the transaction giving rise to the
1494	1494	24 intangible expense or cost between the
1495	1495	25 taxpayer and the person did not have as a
1496	1496	26 principal purpose the avoidance of Illinois
1497	1497
1498	1498
1499	1499
1500	1500
1501	1501
1502	1502	SB0219 - 41 - LRB104 07439 HLH 17480 b
1503	1503
1504	1504
1505	1505	SB0219- 42 -LRB104 07439 HLH 17480 b SB0219 - 42 - LRB104 07439 HLH 17480 b
1506	1506	SB0219 - 42 - LRB104 07439 HLH 17480 b
1507	1507	1 income tax, and is paid pursuant to a contract
1508	1508	2 or agreement that reflects arm's-length terms;
1509	1509	3 or
1510	1510	4 (iii) any item of intangible expense or cost
1511	1511	5 paid, accrued, or incurred, directly or
1512	1512	6 indirectly, from a transaction with a person if
1513	1513	7 the taxpayer establishes by clear and convincing
1514	1514	8 evidence, that the adjustments are unreasonable;
1515	1515	9 or if the taxpayer and the Director agree in
1516	1516	10 writing to the application or use of an
1517	1517	11 alternative method of apportionment under Section
1518	1518	12 304(f);
1519	1519	13 Nothing in this subsection shall preclude the
1520	1520	14 Director from making any other adjustment
1521	1521	15 otherwise allowed under Section 404 of this Act
1522	1522	16 for any tax year beginning after the effective
1523	1523	17 date of this amendment provided such adjustment is
1524	1524	18 made pursuant to regulation adopted by the
1525	1525	19 Department and such regulations provide methods
1526	1526	20 and standards by which the Department will utilize
1527	1527	21 its authority under Section 404 of this Act;
1528	1528	22 (E-14) For taxable years ending on or after
1529	1529	23 December 31, 2008, an amount equal to the amount of
1530	1530	24 insurance premium expenses and costs otherwise allowed
1531	1531	25 as a deduction in computing base income, and that were
1532	1532	26 paid, accrued, or incurred, directly or indirectly, to
1533	1533
1534	1534
1535	1535
1536	1536
1537	1537
1538	1538	SB0219 - 42 - LRB104 07439 HLH 17480 b
1539	1539
1540	1540
1541	1541	SB0219- 43 -LRB104 07439 HLH 17480 b SB0219 - 43 - LRB104 07439 HLH 17480 b
1542	1542	SB0219 - 43 - LRB104 07439 HLH 17480 b
1543	1543	1 a person who would be a member of the same unitary
1544	1544	2 business group but for the fact that the person is
1545	1545	3 prohibited under Section 1501(a)(27) from being
1546	1546	4 included in the unitary business group because he or
1547	1547	5 she is ordinarily required to apportion business
1548	1548	6 income under different subsections of Section 304. The
1549	1549	7 addition modification required by this subparagraph
1550	1550	8 shall be reduced to the extent that dividends were
1551	1551	9 included in base income of the unitary group for the
1552	1552	10 same taxable year and received by the taxpayer or by a
1553	1553	11 member of the taxpayer's unitary business group
1554	1554	12 (including amounts included in gross income under
1555	1555	13 Sections 951 through 964 of the Internal Revenue Code
1556	1556	14 and amounts included in gross income under Section 78
1557	1557	15 of the Internal Revenue Code) with respect to the
1558	1558	16 stock of the same person to whom the premiums and costs
1559	1559	17 were directly or indirectly paid, incurred, or
1560	1560	18 accrued. The preceding sentence does not apply to the
1561	1561	19 extent that the same dividends caused a reduction to
1562	1562	20 the addition modification required under Section
1563	1563	21 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1564	1564	22 Act;
1565	1565	23 (E-15) For taxable years beginning after December
1566	1566	24 31, 2008, any deduction for dividends paid by a
1567	1567	25 captive real estate investment trust that is allowed
1568	1568	26 to a real estate investment trust under Section
1569	1569
1570	1570
1571	1571
1572	1572
1573	1573
1574	1574	SB0219 - 43 - LRB104 07439 HLH 17480 b
1575	1575
1576	1576
1577	1577	SB0219- 44 -LRB104 07439 HLH 17480 b SB0219 - 44 - LRB104 07439 HLH 17480 b
1578	1578	SB0219 - 44 - LRB104 07439 HLH 17480 b
1579	1579	1 857(b)(2)(B) of the Internal Revenue Code for
1580	1580	2 dividends paid;
1581	1581	3 (E-16) An amount equal to the credit allowable to
1582	1582	4 the taxpayer under Section 218(a) of this Act,
1583	1583	5 determined without regard to Section 218(c) of this
1584	1584	6 Act;
1585	1585	7 (E-17) For taxable years ending on or after
1586	1586	8 December 31, 2017, an amount equal to the deduction
1587	1587	9 allowed under Section 199 of the Internal Revenue Code
1588	1588	10 for the taxable year;
1589	1589	11 (E-18) for taxable years beginning after December
1590	1590	12 31, 2018, an amount equal to the deduction allowed
1591	1591	13 under Section 250(a)(1)(A) of the Internal Revenue
1592	1592	14 Code for the taxable year;
1593	1593	15 (E-19) for taxable years ending on or after June
1594	1594	16 30, 2021, an amount equal to the deduction allowed
1595	1595	17 under Section 250(a)(1)(B)(i) of the Internal Revenue
1596	1596	18 Code for the taxable year;
1597	1597	19 (E-20) for taxable years ending on or after June
1598	1598	20 30, 2021, an amount equal to the deduction allowed
1599	1599	21 under Sections 243(e) and 245A(a) of the Internal
1600	1600	22 Revenue Code for the taxable year;
1601	1601	23 (E-21) the amount that is claimed as a federal
1602	1602	24 deduction when computing the taxpayer's federal
1603	1603	25 taxable income for the taxable year and that is
1604	1604	26 attributable to an endowment gift for which the
1605	1605
1606	1606
1607	1607
1608	1608
1609	1609
1610	1610	SB0219 - 44 - LRB104 07439 HLH 17480 b
1611	1611
1612	1612
1613	1613	SB0219- 45 -LRB104 07439 HLH 17480 b SB0219 - 45 - LRB104 07439 HLH 17480 b
1614	1614	SB0219 - 45 - LRB104 07439 HLH 17480 b
1615	1615	1 taxpayer receives a credit under the Illinois Gives
1616	1616	2 Tax Credit Act;
1617	1617	3 and by deducting from the total so obtained the sum of the
1618	1618	4 following amounts:
1619	1619	5 (F) An amount equal to the amount of any tax
1620	1620	6 imposed by this Act which was refunded to the taxpayer
1621	1621	7 and included in such total for the taxable year;
1622	1622	8 (G) An amount equal to any amount included in such
1623	1623	9 total under Section 78 of the Internal Revenue Code;
1624	1624	10 (H) In the case of a regulated investment company,
1625	1625	11 an amount equal to the amount of exempt interest
1626	1626	12 dividends as defined in subsection (b)(5) of Section
1627	1627	13 852 of the Internal Revenue Code, paid to shareholders
1628	1628	14 for the taxable year;
1629	1629	15 (I) With the exception of any amounts subtracted
1630	1630	16 under subparagraph (J), an amount equal to the sum of
1631	1631	17 all amounts disallowed as deductions by (i) Sections
1632	1632	18 171(a)(2) and 265(a)(2) and amounts disallowed as
1633	1633	19 interest expense by Section 291(a)(3) of the Internal
1634	1634	20 Revenue Code, and all amounts of expenses allocable to
1635	1635	21 interest and disallowed as deductions by Section
1636	1636	22 265(a)(1) of the Internal Revenue Code; and (ii) for
1637	1637	23 taxable years ending on or after August 13, 1999,
1638	1638	24 Sections 171(a)(2), 265, 280C, 291(a)(3), and
1639	1639	25 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
1640	1640	26 for tax years ending on or after December 31, 2011,
1641	1641
1642	1642
1643	1643
1644	1644
1645	1645
1646	1646	SB0219 - 45 - LRB104 07439 HLH 17480 b
1647	1647
1648	1648
1649	1649	SB0219- 46 -LRB104 07439 HLH 17480 b SB0219 - 46 - LRB104 07439 HLH 17480 b
1650	1650	SB0219 - 46 - LRB104 07439 HLH 17480 b
1651	1651	1 amounts disallowed as deductions by Section 45G(e)(3)
1652	1652	2 of the Internal Revenue Code and, for taxable years
1653	1653	3 ending on or after December 31, 2008, any amount
1654	1654	4 included in gross income under Section 87 of the
1655	1655	5 Internal Revenue Code and the policyholders' share of
1656	1656	6 tax-exempt interest of a life insurance company under
1657	1657	7 Section 807(a)(2)(B) of the Internal Revenue Code (in
1658	1658	8 the case of a life insurance company with gross income
1659	1659	9 from a decrease in reserves for the tax year) or
1660	1660	10 Section 807(b)(1)(B) of the Internal Revenue Code (in
1661	1661	11 the case of a life insurance company allowed a
1662	1662	12 deduction for an increase in reserves for the tax
1663	1663	13 year); the provisions of this subparagraph are exempt
1664	1664	14 from the provisions of Section 250;
1665	1665	15 (J) An amount equal to all amounts included in
1666	1666	16 such total which are exempt from taxation by this
1667	1667	17 State either by reason of its statutes or Constitution
1668	1668	18 or by reason of the Constitution, treaties or statutes
1669	1669	19 of the United States; provided that, in the case of any
1670	1670	20 statute of this State that exempts income derived from
1671	1671	21 bonds or other obligations from the tax imposed under
1672	1672	22 this Act, the amount exempted shall be the interest
1673	1673	23 net of bond premium amortization;
1674	1674	24 (K) An amount equal to those dividends included in
1675	1675	25 such total which were paid by a corporation which
1676	1676	26 conducts business operations in a River Edge
1677	1677
1678	1678
1679	1679
1680	1680
1681	1681
1682	1682	SB0219 - 46 - LRB104 07439 HLH 17480 b
1683	1683
1684	1684
1685	1685	SB0219- 47 -LRB104 07439 HLH 17480 b SB0219 - 47 - LRB104 07439 HLH 17480 b
1686	1686	SB0219 - 47 - LRB104 07439 HLH 17480 b
1687	1687	1 Redevelopment Zone or zones created under the River
1688	1688	2 Edge Redevelopment Zone Act and conducts substantially
1689	1689	3 all of its operations in a River Edge Redevelopment
1690	1690	4 Zone or zones. This subparagraph (K) is exempt from
1691	1691	5 the provisions of Section 250;
1692	1692	6 (L) An amount equal to those dividends included in
1693	1693	7 such total that were paid by a corporation that
1694	1694	8 conducts business operations in a federally designated
1695	1695	9 Foreign Trade Zone or Sub-Zone and that is designated
1696	1696	10 a High Impact Business located in Illinois; provided
1697	1697	11 that dividends eligible for the deduction provided in
1698	1698	12 subparagraph (K) of paragraph 2 of this subsection
1699	1699	13 shall not be eligible for the deduction provided under
1700	1700	14 this subparagraph (L);
1701	1701	15 (M) For any taxpayer that is a financial
1702	1702	16 organization within the meaning of Section 304(c) of
1703	1703	17 this Act, an amount included in such total as interest
1704	1704	18 income from a loan or loans made by such taxpayer to a
1705	1705	19 borrower, to the extent that such a loan is secured by
1706	1706	20 property which is eligible for the River Edge
1707	1707	21 Redevelopment Zone Investment Credit. To determine the
1708	1708	22 portion of a loan or loans that is secured by property
1709	1709	23 eligible for a Section 201(f) investment credit to the
1710	1710	24 borrower, the entire principal amount of the loan or
1711	1711	25 loans between the taxpayer and the borrower should be
1712	1712	26 divided into the basis of the Section 201(f)
1713	1713
1714	1714
1715	1715
1716	1716
1717	1717
1718	1718	SB0219 - 47 - LRB104 07439 HLH 17480 b
1719	1719
1720	1720
1721	1721	SB0219- 48 -LRB104 07439 HLH 17480 b SB0219 - 48 - LRB104 07439 HLH 17480 b
1722	1722	SB0219 - 48 - LRB104 07439 HLH 17480 b
1723	1723	1 investment credit property which secures the loan or
1724	1724	2 loans, using for this purpose the original basis of
1725	1725	3 such property on the date that it was placed in service
1726	1726	4 in the River Edge Redevelopment Zone. The subtraction
1727	1727	5 modification available to the taxpayer in any year
1728	1728	6 under this subsection shall be that portion of the
1729	1729	7 total interest paid by the borrower with respect to
1730	1730	8 such loan attributable to the eligible property as
1731	1731	9 calculated under the previous sentence. This
1732	1732	10 subparagraph (M) is exempt from the provisions of
1733	1733	11 Section 250;
1734	1734	12 (M-1) For any taxpayer that is a financial
1735	1735	13 organization within the meaning of Section 304(c) of
1736	1736	14 this Act, an amount included in such total as interest
1737	1737	15 income from a loan or loans made by such taxpayer to a
1738	1738	16 borrower, to the extent that such a loan is secured by
1739	1739	17 property which is eligible for the High Impact
1740	1740	18 Business Investment Credit. To determine the portion
1741	1741	19 of a loan or loans that is secured by property eligible
1742	1742	20 for a Section 201(h) investment credit to the
1743	1743	21 borrower, the entire principal amount of the loan or
1744	1744	22 loans between the taxpayer and the borrower should be
1745	1745	23 divided into the basis of the Section 201(h)
1746	1746	24 investment credit property which secures the loan or
1747	1747	25 loans, using for this purpose the original basis of
1748	1748	26 such property on the date that it was placed in service
1749	1749
1750	1750
1751	1751
1752	1752
1753	1753
1754	1754	SB0219 - 48 - LRB104 07439 HLH 17480 b
1755	1755
1756	1756
1757	1757	SB0219- 49 -LRB104 07439 HLH 17480 b SB0219 - 49 - LRB104 07439 HLH 17480 b
1758	1758	SB0219 - 49 - LRB104 07439 HLH 17480 b
1759	1759	1 in a federally designated Foreign Trade Zone or
1760	1760	2 Sub-Zone located in Illinois. No taxpayer that is
1761	1761	3 eligible for the deduction provided in subparagraph
1762	1762	4 (M) of paragraph (2) of this subsection shall be
1763	1763	5 eligible for the deduction provided under this
1764	1764	6 subparagraph (M-1). The subtraction modification
1765	1765	7 available to taxpayers in any year under this
1766	1766	8 subsection shall be that portion of the total interest
1767	1767	9 paid by the borrower with respect to such loan
1768	1768	10 attributable to the eligible property as calculated
1769	1769	11 under the previous sentence;
1770	1770	12 (N) Two times any contribution made during the
1771	1771	13 taxable year to a designated zone organization to the
1772	1772	14 extent that the contribution (i) qualifies as a
1773	1773	15 charitable contribution under subsection (c) of
1774	1774	16 Section 170 of the Internal Revenue Code and (ii)
1775	1775	17 must, by its terms, be used for a project approved by
1776	1776	18 the Department of Commerce and Economic Opportunity
1777	1777	19 under Section 11 of the Illinois Enterprise Zone Act
1778	1778	20 or under Section 10-10 of the River Edge Redevelopment
1779	1779	21 Zone Act. This subparagraph (N) is exempt from the
1780	1780	22 provisions of Section 250;
1781	1781	23 (O) An amount equal to: (i) 85% for taxable years
1782	1782	24 ending on or before December 31, 1992, or, a
1783	1783	25 percentage equal to the percentage allowable under
1784	1784	26 Section 243(a)(1) of the Internal Revenue Code of 1986
1785	1785
1786	1786
1787	1787
1788	1788
1789	1789
1790	1790	SB0219 - 49 - LRB104 07439 HLH 17480 b
1791	1791
1792	1792
1793	1793	SB0219- 50 -LRB104 07439 HLH 17480 b SB0219 - 50 - LRB104 07439 HLH 17480 b
1794	1794	SB0219 - 50 - LRB104 07439 HLH 17480 b
1795	1795	1 for taxable years ending after December 31, 1992, of
1796	1796	2 the amount by which dividends included in taxable
1797	1797	3 income and received from a corporation that is not
1798	1798	4 created or organized under the laws of the United
1799	1799	5 States or any state or political subdivision thereof,
1800	1800	6 including, for taxable years ending on or after
1801	1801	7 December 31, 1988, dividends received or deemed
1802	1802	8 received or paid or deemed paid under Sections 951
1803	1803	9 through 965 of the Internal Revenue Code, exceed the
1804	1804	10 amount of the modification provided under subparagraph
1805	1805	11 (G) of paragraph (2) of this subsection (b) which is
1806	1806	12 related to such dividends, and including, for taxable
1807	1807	13 years ending on or after December 31, 2008, dividends
1808	1808	14 received from a captive real estate investment trust;
1809	1809	15 plus (ii) 100% of the amount by which dividends,
1810	1810	16 included in taxable income and received, including,
1811	1811	17 for taxable years ending on or after December 31,
1812	1812	18 1988, dividends received or deemed received or paid or
1813	1813	19 deemed paid under Sections 951 through 964 of the
1814	1814	20 Internal Revenue Code and including, for taxable years
1815	1815	21 ending on or after December 31, 2008, dividends
1816	1816	22 received from a captive real estate investment trust,
1817	1817	23 from any such corporation specified in clause (i) that
1818	1818	24 would but for the provisions of Section 1504(b)(3) of
1819	1819	25 the Internal Revenue Code be treated as a member of the
1820	1820	26 affiliated group which includes the dividend
1821	1821
1822	1822
1823	1823
1824	1824
1825	1825
1826	1826	SB0219 - 50 - LRB104 07439 HLH 17480 b
1827	1827
1828	1828
1829	1829	SB0219- 51 -LRB104 07439 HLH 17480 b SB0219 - 51 - LRB104 07439 HLH 17480 b
1830	1830	SB0219 - 51 - LRB104 07439 HLH 17480 b
1831	1831	1 recipient, exceed the amount of the modification
1832	1832	2 provided under subparagraph (G) of paragraph (2) of
1833	1833	3 this subsection (b) which is related to such
1834	1834	4 dividends. For taxable years ending on or after June
1835	1835	5 30, 2021, (i) for purposes of this subparagraph, the
1836	1836	6 term "dividend" does not include any amount treated as
1837	1837	7 a dividend under Section 1248 of the Internal Revenue
1838	1838	8 Code, and (ii) this subparagraph shall not apply to
1839	1839	9 dividends for which a deduction is allowed under
1840	1840	10 Section 245(a) of the Internal Revenue Code. This
1841	1841	11 subparagraph (O) is exempt from the provisions of
1842	1842	12 Section 250 of this Act;
1843	1843	13 (P) An amount equal to any contribution made to a
1844	1844	14 job training project established pursuant to the Tax
1845	1845	15 Increment Allocation Redevelopment Act;
1846	1846	16 (Q) An amount equal to the amount of the deduction
1847	1847	17 used to compute the federal income tax credit for
1848	1848	18 restoration of substantial amounts held under claim of
1849	1849	19 right for the taxable year pursuant to Section 1341 of
1850	1850	20 the Internal Revenue Code;
1851	1851	21 (R) On and after July 20, 1999, in the case of an
1852	1852	22 attorney-in-fact with respect to whom an interinsurer
1853	1853	23 or a reciprocal insurer has made the election under
1854	1854	24 Section 835 of the Internal Revenue Code, 26 U.S.C.
1855	1855	25 835, an amount equal to the excess, if any, of the
1856	1856	26 amounts paid or incurred by that interinsurer or
1857	1857
1858	1858
1859	1859
1860	1860
1861	1861
1862	1862	SB0219 - 51 - LRB104 07439 HLH 17480 b
1863	1863
1864	1864
1865	1865	SB0219- 52 -LRB104 07439 HLH 17480 b SB0219 - 52 - LRB104 07439 HLH 17480 b
1866	1866	SB0219 - 52 - LRB104 07439 HLH 17480 b
1867	1867	1 reciprocal insurer in the taxable year to the
1868	1868	2 attorney-in-fact over the deduction allowed to that
1869	1869	3 interinsurer or reciprocal insurer with respect to the
1870	1870	4 attorney-in-fact under Section 835(b) of the Internal
1871	1871	5 Revenue Code for the taxable year; the provisions of
1872	1872	6 this subparagraph are exempt from the provisions of
1873	1873	7 Section 250;
1874	1874	8 (S) For taxable years ending on or after December
1875	1875	9 31, 1997, in the case of a Subchapter S corporation, an
1876	1876	10 amount equal to all amounts of income allocable to a
1877	1877	11 shareholder subject to the Personal Property Tax
1878	1878	12 Replacement Income Tax imposed by subsections (c) and
1879	1879	13 (d) of Section 201 of this Act, including amounts
1880	1880	14 allocable to organizations exempt from federal income
1881	1881	15 tax by reason of Section 501(a) of the Internal
1882	1882	16 Revenue Code. This subparagraph (S) is exempt from the
1883	1883	17 provisions of Section 250;
1884	1884	18 (T) For taxable years 2001 and thereafter, for the
1885	1885	19 taxable year in which the bonus depreciation deduction
1886	1886	20 is taken on the taxpayer's federal income tax return
1887	1887	21 under subsection (k) of Section 168 of the Internal
1888	1888	22 Revenue Code and for each applicable taxable year
1889	1889	23 thereafter, an amount equal to "x", where:
1890	1890	24 (1) "y" equals the amount of the depreciation
1891	1891	25 deduction taken for the taxable year on the
1892	1892	26 taxpayer's federal income tax return on property
1893	1893
1894	1894
1895	1895
1896	1896
1897	1897
1898	1898	SB0219 - 52 - LRB104 07439 HLH 17480 b
1899	1899
1900	1900
1901	1901	SB0219- 53 -LRB104 07439 HLH 17480 b SB0219 - 53 - LRB104 07439 HLH 17480 b
1902	1902	SB0219 - 53 - LRB104 07439 HLH 17480 b
1903	1903	1 for which the bonus depreciation deduction was
1904	1904	2 taken in any year under subsection (k) of Section
1905	1905	3 168 of the Internal Revenue Code, but not
1906	1906	4 including the bonus depreciation deduction;
1907	1907	5 (2) for taxable years ending on or before
1908	1908	6 December 31, 2005, "x" equals "y" multiplied by 30
1909	1909	7 and then divided by 70 (or "y" multiplied by
1910	1910	8 0.429); and
1911	1911	9 (3) for taxable years ending after December
1912	1912	10 31, 2005:
1913	1913	11 (i) for property on which a bonus
1914	1914	12 depreciation deduction of 30% of the adjusted
1915	1915	13 basis was taken, "x" equals "y" multiplied by
1916	1916	14 30 and then divided by 70 (or "y" multiplied
1917	1917	15 by 0.429);
1918	1918	16 (ii) for property on which a bonus
1919	1919	17 depreciation deduction of 50% of the adjusted
1920	1920	18 basis was taken, "x" equals "y" multiplied by
1921	1921	19 1.0;
1922	1922	20 (iii) for property on which a bonus
1923	1923	21 depreciation deduction of 100% of the adjusted
1924	1924	22 basis was taken in a taxable year ending on or
1925	1925	23 after December 31, 2021, "x" equals the
1926	1926	24 depreciation deduction that would be allowed
1927	1927	25 on that property if the taxpayer had made the
1928	1928	26 election under Section 168(k)(7) of the
1929	1929
1930	1930
1931	1931
1932	1932
1933	1933
1934	1934	SB0219 - 53 - LRB104 07439 HLH 17480 b
1935	1935
1936	1936
1937	1937	SB0219- 54 -LRB104 07439 HLH 17480 b SB0219 - 54 - LRB104 07439 HLH 17480 b
1938	1938	SB0219 - 54 - LRB104 07439 HLH 17480 b
1939	1939	1 Internal Revenue Code to not claim bonus
1940	1940	2 depreciation on that property; and
1941	1941	3 (iv) for property on which a bonus
1942	1942	4 depreciation deduction of a percentage other
1943	1943	5 than 30%, 50% or 100% of the adjusted basis
1944	1944	6 was taken in a taxable year ending on or after
1945	1945	7 December 31, 2021, "x" equals "y" multiplied
1946	1946	8 by 100 times the percentage bonus depreciation
1947	1947	9 on the property (that is, 100(bonus%)) and
1948	1948	10 then divided by 100 times 1 minus the
1949	1949	11 percentage bonus depreciation on the property
1950	1950	12 (that is, 100(1-bonus%)).
1951	1951	13 The aggregate amount deducted under this
1952	1952	14 subparagraph in all taxable years for any one piece of
1953	1953	15 property may not exceed the amount of the bonus
1954	1954	16 depreciation deduction taken on that property on the
1955	1955	17 taxpayer's federal income tax return under subsection
1956	1956	18 (k) of Section 168 of the Internal Revenue Code. This
1957	1957	19 subparagraph (T) is exempt from the provisions of
1958	1958	20 Section 250;
1959	1959	21 (U) If the taxpayer sells, transfers, abandons, or
1960	1960	22 otherwise disposes of property for which the taxpayer
1961	1961	23 was required in any taxable year to make an addition
1962	1962	24 modification under subparagraph (E-10), then an amount
1963	1963	25 equal to that addition modification.
1964	1964	26 If the taxpayer continues to own property through
1965	1965
1966	1966
1967	1967
1968	1968
1969	1969
1970	1970	SB0219 - 54 - LRB104 07439 HLH 17480 b
1971	1971
1972	1972
1973	1973	SB0219- 55 -LRB104 07439 HLH 17480 b SB0219 - 55 - LRB104 07439 HLH 17480 b
1974	1974	SB0219 - 55 - LRB104 07439 HLH 17480 b
1975	1975	1 the last day of the last tax year for which a
1976	1976	2 subtraction is allowed with respect to that property
1977	1977	3 under subparagraph (T) and for which the taxpayer was
1978	1978	4 required in any taxable year to make an addition
1979	1979	5 modification under subparagraph (E-10), then an amount
1980	1980	6 equal to that addition modification.
1981	1981	7 The taxpayer is allowed to take the deduction
1982	1982	8 under this subparagraph only once with respect to any
1983	1983	9 one piece of property.
1984	1984	10 This subparagraph (U) is exempt from the
1985	1985	11 provisions of Section 250;
1986	1986	12 (V) The amount of: (i) any interest income (net of
1987	1987	13 the deductions allocable thereto) taken into account
1988	1988	14 for the taxable year with respect to a transaction
1989	1989	15 with a taxpayer that is required to make an addition
1990	1990	16 modification with respect to such transaction under
1991	1991	17 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1992	1992	18 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1993	1993	19 the amount of such addition modification, (ii) any
1994	1994	20 income from intangible property (net of the deductions
1995	1995	21 allocable thereto) taken into account for the taxable
1996	1996	22 year with respect to a transaction with a taxpayer
1997	1997	23 that is required to make an addition modification with
1998	1998	24 respect to such transaction under Section
1999	1999	25 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2000	2000	26 203(d)(2)(D-8), but not to exceed the amount of such
2001	2001
2002	2002
2003	2003
2004	2004
2005	2005
2006	2006	SB0219 - 55 - LRB104 07439 HLH 17480 b
2007	2007
2008	2008
2009	2009	SB0219- 56 -LRB104 07439 HLH 17480 b SB0219 - 56 - LRB104 07439 HLH 17480 b
2010	2010	SB0219 - 56 - LRB104 07439 HLH 17480 b
2011	2011	1 addition modification, and (iii) any insurance premium
2012	2012	2 income (net of deductions allocable thereto) taken
2013	2013	3 into account for the taxable year with respect to a
2014	2014	4 transaction with a taxpayer that is required to make
2015	2015	5 an addition modification with respect to such
2016	2016	6 transaction under Section 203(a)(2)(D-19), Section
2017	2017	7 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
2018	2018	8 203(d)(2)(D-9), but not to exceed the amount of that
2019	2019	9 addition modification. This subparagraph (V) is exempt
2020	2020	10 from the provisions of Section 250;
2021	2021	11 (W) An amount equal to the interest income taken
2022	2022	12 into account for the taxable year (net of the
2023	2023	13 deductions allocable thereto) with respect to
2024	2024	14 transactions with (i) a foreign person who would be a
2025	2025	15 member of the taxpayer's unitary business group but
2026	2026	16 for the fact that the foreign person's business
2027	2027	17 activity outside the United States is 80% or more of
2028	2028	18 that person's total business activity and (ii) for
2029	2029	19 taxable years ending on or after December 31, 2008, to
2030	2030	20 a person who would be a member of the same unitary
2031	2031	21 business group but for the fact that the person is
2032	2032	22 prohibited under Section 1501(a)(27) from being
2033	2033	23 included in the unitary business group because he or
2034	2034	24 she is ordinarily required to apportion business
2035	2035	25 income under different subsections of Section 304, but
2036	2036	26 not to exceed the addition modification required to be
2037	2037
2038	2038
2039	2039
2040	2040
2041	2041
2042	2042	SB0219 - 56 - LRB104 07439 HLH 17480 b
2043	2043
2044	2044
2045	2045	SB0219- 57 -LRB104 07439 HLH 17480 b SB0219 - 57 - LRB104 07439 HLH 17480 b
2046	2046	SB0219 - 57 - LRB104 07439 HLH 17480 b
2047	2047	1 made for the same taxable year under Section
2048	2048	2 203(b)(2)(E-12) for interest paid, accrued, or
2049	2049	3 incurred, directly or indirectly, to the same person.
2050	2050	4 This subparagraph (W) is exempt from the provisions of
2051	2051	5 Section 250;
2052	2052	6 (X) An amount equal to the income from intangible
2053	2053	7 property taken into account for the taxable year (net
2054	2054	8 of the deductions allocable thereto) with respect to
2055	2055	9 transactions with (i) a foreign person who would be a
2056	2056	10 member of the taxpayer's unitary business group but
2057	2057	11 for the fact that the foreign person's business
2058	2058	12 activity outside the United States is 80% or more of
2059	2059	13 that person's total business activity and (ii) for
2060	2060	14 taxable years ending on or after December 31, 2008, to
2061	2061	15 a person who would be a member of the same unitary
2062	2062	16 business group but for the fact that the person is
2063	2063	17 prohibited under Section 1501(a)(27) from being
2064	2064	18 included in the unitary business group because he or
2065	2065	19 she is ordinarily required to apportion business
2066	2066	20 income under different subsections of Section 304, but
2067	2067	21 not to exceed the addition modification required to be
2068	2068	22 made for the same taxable year under Section
2069	2069	23 203(b)(2)(E-13) for intangible expenses and costs
2070	2070	24 paid, accrued, or incurred, directly or indirectly, to
2071	2071	25 the same foreign person. This subparagraph (X) is
2072	2072	26 exempt from the provisions of Section 250;
2073	2073
2074	2074
2075	2075
2076	2076
2077	2077
2078	2078	SB0219 - 57 - LRB104 07439 HLH 17480 b
2079	2079
2080	2080
2081	2081	SB0219- 58 -LRB104 07439 HLH 17480 b SB0219 - 58 - LRB104 07439 HLH 17480 b
2082	2082	SB0219 - 58 - LRB104 07439 HLH 17480 b
2083	2083	1 (Y) For taxable years ending on or after December
2084	2084	2 31, 2011, in the case of a taxpayer who was required to
2085	2085	3 add back any insurance premiums under Section
2086	2086	4 203(b)(2)(E-14), such taxpayer may elect to subtract
2087	2087	5 that part of a reimbursement received from the
2088	2088	6 insurance company equal to the amount of the expense
2089	2089	7 or loss (including expenses incurred by the insurance
2090	2090	8 company) that would have been taken into account as a
2091	2091	9 deduction for federal income tax purposes if the
2092	2092	10 expense or loss had been uninsured. If a taxpayer
2093	2093	11 makes the election provided for by this subparagraph
2094	2094	12 (Y), the insurer to which the premiums were paid must
2095	2095	13 add back to income the amount subtracted by the
2096	2096	14 taxpayer pursuant to this subparagraph (Y). This
2097	2097	15 subparagraph (Y) is exempt from the provisions of
2098	2098	16 Section 250;
2099	2099	17 (Z) The difference between the nondeductible
2100	2100	18 controlled foreign corporation dividends under Section
2101	2101	19 965(e)(3) of the Internal Revenue Code over the
2102	2102	20 taxable income of the taxpayer, computed without
2103	2103	21 regard to Section 965(e)(2)(A) of the Internal Revenue
2104	2104	22 Code, and without regard to any net operating loss
2105	2105	23 deduction. This subparagraph (Z) is exempt from the
2106	2106	24 provisions of Section 250; and
2107	2107	25 (AA) For taxable years beginning on or after
2108	2108	26 January 1, 2023, for any cannabis establishment
2109	2109
2110	2110
2111	2111
2112	2112
2113	2113
2114	2114	SB0219 - 58 - LRB104 07439 HLH 17480 b
2115	2115
2116	2116
2117	2117	SB0219- 59 -LRB104 07439 HLH 17480 b SB0219 - 59 - LRB104 07439 HLH 17480 b
2118	2118	SB0219 - 59 - LRB104 07439 HLH 17480 b
2119	2119	1 operating in this State and licensed under the
2120	2120	2 Cannabis Regulation and Tax Act or any cannabis
2121	2121	3 cultivation center or medical cannabis dispensing
2122	2122	4 organization operating in this State and licensed
2123	2123	5 under the Compassionate Use of Medical Cannabis
2124	2124	6 Program Act, an amount equal to the deductions that
2125	2125	7 were disallowed under Section 280E of the Internal
2126	2126	8 Revenue Code for the taxable year and that would not be
2127	2127	9 added back under this subsection. The provisions of
2128	2128	10 this subparagraph (AA) are exempt from the provisions
2129	2129	11 of Section 250.
2130	2130	12 (3) Special rule. For purposes of paragraph (2)(A),
2131	2131	13 "gross income" in the case of a life insurance company,
2132	2132	14 for tax years ending on and after December 31, 1994, and
2133	2133	15 prior to December 31, 2011, shall mean the gross
2134	2134	16 investment income for the taxable year and, for tax years
2135	2135	17 ending on or after December 31, 2011, shall mean all
2136	2136	18 amounts included in life insurance gross income under
2137	2137	19 Section 803(a)(3) of the Internal Revenue Code.
2138	2138	20 (c) Trusts and estates.
2139	2139	21 (1) In general. In the case of a trust or estate, base
2140	2140	22 income means an amount equal to the taxpayer's taxable
2141	2141	23 income for the taxable year as modified by paragraph (2).
2142	2142	24 (2) Modifications. Subject to the provisions of
2143	2143	25 paragraph (3), the taxable income referred to in paragraph
2144	2144
2145	2145
2146	2146
2147	2147
2148	2148
2149	2149	SB0219 - 59 - LRB104 07439 HLH 17480 b
2150	2150
2151	2151
2152	2152	SB0219- 60 -LRB104 07439 HLH 17480 b SB0219 - 60 - LRB104 07439 HLH 17480 b
2153	2153	SB0219 - 60 - LRB104 07439 HLH 17480 b
2154	2154	1 (1) shall be modified by adding thereto the sum of the
2155	2155	2 following amounts:
2156	2156	3 (A) An amount equal to all amounts paid or accrued
2157	2157	4 to the taxpayer as interest or dividends during the
2158	2158	5 taxable year to the extent excluded from gross income
2159	2159	6 in the computation of taxable income;
2160	2160	7 (B) In the case of (i) an estate, $600; (ii) a
2161	2161	8 trust which, under its governing instrument, is
2162	2162	9 required to distribute all of its income currently,
2163	2163	10 $300; and (iii) any other trust, $100, but in each such
2164	2164	11 case, only to the extent such amount was deducted in
2165	2165	12 the computation of taxable income;
2166	2166	13 (C) An amount equal to the amount of tax imposed by
2167	2167	14 this Act to the extent deducted from gross income in
2168	2168	15 the computation of taxable income for the taxable
2169	2169	16 year;
2170	2170	17 (D) The amount of any net operating loss deduction
2171	2171	18 taken in arriving at taxable income, other than a net
2172	2172	19 operating loss carried forward from a taxable year
2173	2173	20 ending prior to December 31, 1986;
2174	2174	21 (E) For taxable years in which a net operating
2175	2175	22 loss carryback or carryforward from a taxable year
2176	2176	23 ending prior to December 31, 1986 is an element of
2177	2177	24 taxable income under paragraph (1) of subsection (e)
2178	2178	25 or subparagraph (E) of paragraph (2) of subsection
2179	2179	26 (e), the amount by which addition modifications other
2180	2180
2181	2181
2182	2182
2183	2183
2184	2184
2185	2185	SB0219 - 60 - LRB104 07439 HLH 17480 b
2186	2186
2187	2187
2188	2188	SB0219- 61 -LRB104 07439 HLH 17480 b SB0219 - 61 - LRB104 07439 HLH 17480 b
2189	2189	SB0219 - 61 - LRB104 07439 HLH 17480 b
2190	2190	1 than those provided by this subparagraph (E) exceeded
2191	2191	2 subtraction modifications in such taxable year, with
2192	2192	3 the following limitations applied in the order that
2193	2193	4 they are listed:
2194	2194	5 (i) the addition modification relating to the
2195	2195	6 net operating loss carried back or forward to the
2196	2196	7 taxable year from any taxable year ending prior to
2197	2197	8 December 31, 1986 shall be reduced by the amount
2198	2198	9 of addition modification under this subparagraph
2199	2199	10 (E) which related to that net operating loss and
2200	2200	11 which was taken into account in calculating the
2201	2201	12 base income of an earlier taxable year, and
2202	2202	13 (ii) the addition modification relating to the
2203	2203	14 net operating loss carried back or forward to the
2204	2204	15 taxable year from any taxable year ending prior to
2205	2205	16 December 31, 1986 shall not exceed the amount of
2206	2206	17 such carryback or carryforward;
2207	2207	18 For taxable years in which there is a net
2208	2208	19 operating loss carryback or carryforward from more
2209	2209	20 than one other taxable year ending prior to December
2210	2210	21 31, 1986, the addition modification provided in this
2211	2211	22 subparagraph (E) shall be the sum of the amounts
2212	2212	23 computed independently under the preceding provisions
2213	2213	24 of this subparagraph (E) for each such taxable year;
2214	2214	25 (F) For taxable years ending on or after January
2215	2215	26 1, 1989, an amount equal to the tax deducted pursuant
2216	2216
2217	2217
2218	2218
2219	2219
2220	2220
2221	2221	SB0219 - 61 - LRB104 07439 HLH 17480 b
2222	2222
2223	2223
2224	2224	SB0219- 62 -LRB104 07439 HLH 17480 b SB0219 - 62 - LRB104 07439 HLH 17480 b
2225	2225	SB0219 - 62 - LRB104 07439 HLH 17480 b
2226	2226	1 to Section 164 of the Internal Revenue Code if the
2227	2227	2 trust or estate is claiming the same tax for purposes
2228	2228	3 of the Illinois foreign tax credit under Section 601
2229	2229	4 of this Act;
2230	2230	5 (G) An amount equal to the amount of the capital
2231	2231	6 gain deduction allowable under the Internal Revenue
2232	2232	7 Code, to the extent deducted from gross income in the
2233	2233	8 computation of taxable income;
2234	2234	9 (G-5) For taxable years ending after December 31,
2235	2235	10 1997, an amount equal to any eligible remediation
2236	2236	11 costs that the trust or estate deducted in computing
2237	2237	12 adjusted gross income and for which the trust or
2238	2238	13 estate claims a credit under subsection (l) of Section
2239	2239	14 201;
2240	2240	15 (G-10) For taxable years 2001 and thereafter, an
2241	2241	16 amount equal to the bonus depreciation deduction taken
2242	2242	17 on the taxpayer's federal income tax return for the
2243	2243	18 taxable year under subsection (k) of Section 168 of
2244	2244	19 the Internal Revenue Code; and
2245	2245	20 (G-11) If the taxpayer sells, transfers, abandons,
2246	2246	21 or otherwise disposes of property for which the
2247	2247	22 taxpayer was required in any taxable year to make an
2248	2248	23 addition modification under subparagraph (G-10), then
2249	2249	24 an amount equal to the aggregate amount of the
2250	2250	25 deductions taken in all taxable years under
2251	2251	26 subparagraph (R) with respect to that property.
2252	2252
2253	2253
2254	2254
2255	2255
2256	2256
2257	2257	SB0219 - 62 - LRB104 07439 HLH 17480 b
2258	2258
2259	2259
2260	2260	SB0219- 63 -LRB104 07439 HLH 17480 b SB0219 - 63 - LRB104 07439 HLH 17480 b
2261	2261	SB0219 - 63 - LRB104 07439 HLH 17480 b
2262	2262	1 If the taxpayer continues to own property through
2263	2263	2 the last day of the last tax year for which a
2264	2264	3 subtraction is allowed with respect to that property
2265	2265	4 under subparagraph (R) and for which the taxpayer was
2266	2266	5 allowed in any taxable year to make a subtraction
2267	2267	6 modification under subparagraph (R), then an amount
2268	2268	7 equal to that subtraction modification.
2269	2269	8 The taxpayer is required to make the addition
2270	2270	9 modification under this subparagraph only once with
2271	2271	10 respect to any one piece of property;
2272	2272	11 (G-12) An amount equal to the amount otherwise
2273	2273	12 allowed as a deduction in computing base income for
2274	2274	13 interest paid, accrued, or incurred, directly or
2275	2275	14 indirectly, (i) for taxable years ending on or after
2276	2276	15 December 31, 2004, to a foreign person who would be a
2277	2277	16 member of the same unitary business group but for the
2278	2278	17 fact that the foreign person's business activity
2279	2279	18 outside the United States is 80% or more of the foreign
2280	2280	19 person's total business activity and (ii) for taxable
2281	2281	20 years ending on or after December 31, 2008, to a person
2282	2282	21 who would be a member of the same unitary business
2283	2283	22 group but for the fact that the person is prohibited
2284	2284	23 under Section 1501(a)(27) from being included in the
2285	2285	24 unitary business group because he or she is ordinarily
2286	2286	25 required to apportion business income under different
2287	2287	26 subsections of Section 304. The addition modification
2288	2288
2289	2289
2290	2290
2291	2291
2292	2292
2293	2293	SB0219 - 63 - LRB104 07439 HLH 17480 b
2294	2294
2295	2295
2296	2296	SB0219- 64 -LRB104 07439 HLH 17480 b SB0219 - 64 - LRB104 07439 HLH 17480 b
2297	2297	SB0219 - 64 - LRB104 07439 HLH 17480 b
2298	2298	1 required by this subparagraph shall be reduced to the
2299	2299	2 extent that dividends were included in base income of
2300	2300	3 the unitary group for the same taxable year and
2301	2301	4 received by the taxpayer or by a member of the
2302	2302	5 taxpayer's unitary business group (including amounts
2303	2303	6 included in gross income pursuant to Sections 951
2304	2304	7 through 964 of the Internal Revenue Code and amounts
2305	2305	8 included in gross income under Section 78 of the
2306	2306	9 Internal Revenue Code) with respect to the stock of
2307	2307	10 the same person to whom the interest was paid,
2308	2308	11 accrued, or incurred.
2309	2309	12 This paragraph shall not apply to the following:
2310	2310	13 (i) an item of interest paid, accrued, or
2311	2311	14 incurred, directly or indirectly, to a person who
2312	2312	15 is subject in a foreign country or state, other
2313	2313	16 than a state which requires mandatory unitary
2314	2314	17 reporting, to a tax on or measured by net income
2315	2315	18 with respect to such interest; or
2316	2316	19 (ii) an item of interest paid, accrued, or
2317	2317	20 incurred, directly or indirectly, to a person if
2318	2318	21 the taxpayer can establish, based on a
2319	2319	22 preponderance of the evidence, both of the
2320	2320	23 following:
2321	2321	24 (a) the person, during the same taxable
2322	2322	25 year, paid, accrued, or incurred, the interest
2323	2323	26 to a person that is not a related member, and
2324	2324
2325	2325
2326	2326
2327	2327
2328	2328
2329	2329	SB0219 - 64 - LRB104 07439 HLH 17480 b
2330	2330
2331	2331
2332	2332	SB0219- 65 -LRB104 07439 HLH 17480 b SB0219 - 65 - LRB104 07439 HLH 17480 b
2333	2333	SB0219 - 65 - LRB104 07439 HLH 17480 b
2334	2334	1 (b) the transaction giving rise to the
2335	2335	2 interest expense between the taxpayer and the
2336	2336	3 person did not have as a principal purpose the
2337	2337	4 avoidance of Illinois income tax, and is paid
2338	2338	5 pursuant to a contract or agreement that
2339	2339	6 reflects an arm's-length interest rate and
2340	2340	7 terms; or
2341	2341	8 (iii) the taxpayer can establish, based on
2342	2342	9 clear and convincing evidence, that the interest
2343	2343	10 paid, accrued, or incurred relates to a contract
2344	2344	11 or agreement entered into at arm's-length rates
2345	2345	12 and terms and the principal purpose for the
2346	2346	13 payment is not federal or Illinois tax avoidance;
2347	2347	14 or
2348	2348	15 (iv) an item of interest paid, accrued, or
2349	2349	16 incurred, directly or indirectly, to a person if
2350	2350	17 the taxpayer establishes by clear and convincing
2351	2351	18 evidence that the adjustments are unreasonable; or
2352	2352	19 if the taxpayer and the Director agree in writing
2353	2353	20 to the application or use of an alternative method
2354	2354	21 of apportionment under Section 304(f).
2355	2355	22 Nothing in this subsection shall preclude the
2356	2356	23 Director from making any other adjustment
2357	2357	24 otherwise allowed under Section 404 of this Act
2358	2358	25 for any tax year beginning after the effective
2359	2359	26 date of this amendment provided such adjustment is
2360	2360
2361	2361
2362	2362
2363	2363
2364	2364
2365	2365	SB0219 - 65 - LRB104 07439 HLH 17480 b
2366	2366
2367	2367
2368	2368	SB0219- 66 -LRB104 07439 HLH 17480 b SB0219 - 66 - LRB104 07439 HLH 17480 b
2369	2369	SB0219 - 66 - LRB104 07439 HLH 17480 b
2370	2370	1 made pursuant to regulation adopted by the
2371	2371	2 Department and such regulations provide methods
2372	2372	3 and standards by which the Department will utilize
2373	2373	4 its authority under Section 404 of this Act;
2374	2374	5 (G-13) An amount equal to the amount of intangible
2375	2375	6 expenses and costs otherwise allowed as a deduction in
2376	2376	7 computing base income, and that were paid, accrued, or
2377	2377	8 incurred, directly or indirectly, (i) for taxable
2378	2378	9 years ending on or after December 31, 2004, to a
2379	2379	10 foreign person who would be a member of the same
2380	2380	11 unitary business group but for the fact that the
2381	2381	12 foreign person's business activity outside the United
2382	2382	13 States is 80% or more of that person's total business
2383	2383	14 activity and (ii) for taxable years ending on or after
2384	2384	15 December 31, 2008, to a person who would be a member of
2385	2385	16 the same unitary business group but for the fact that
2386	2386	17 the person is prohibited under Section 1501(a)(27)
2387	2387	18 from being included in the unitary business group
2388	2388	19 because he or she is ordinarily required to apportion
2389	2389	20 business income under different subsections of Section
2390	2390	21 304. The addition modification required by this
2391	2391	22 subparagraph shall be reduced to the extent that
2392	2392	23 dividends were included in base income of the unitary
2393	2393	24 group for the same taxable year and received by the
2394	2394	25 taxpayer or by a member of the taxpayer's unitary
2395	2395	26 business group (including amounts included in gross
2396	2396
2397	2397
2398	2398
2399	2399
2400	2400
2401	2401	SB0219 - 66 - LRB104 07439 HLH 17480 b
2402	2402
2403	2403
2404	2404	SB0219- 67 -LRB104 07439 HLH 17480 b SB0219 - 67 - LRB104 07439 HLH 17480 b
2405	2405	SB0219 - 67 - LRB104 07439 HLH 17480 b
2406	2406	1 income pursuant to Sections 951 through 964 of the
2407	2407	2 Internal Revenue Code and amounts included in gross
2408	2408	3 income under Section 78 of the Internal Revenue Code)
2409	2409	4 with respect to the stock of the same person to whom
2410	2410	5 the intangible expenses and costs were directly or
2411	2411	6 indirectly paid, incurred, or accrued. The preceding
2412	2412	7 sentence shall not apply to the extent that the same
2413	2413	8 dividends caused a reduction to the addition
2414	2414	9 modification required under Section 203(c)(2)(G-12) of
2415	2415	10 this Act. As used in this subparagraph, the term
2416	2416	11 "intangible expenses and costs" includes: (1)
2417	2417	12 expenses, losses, and costs for or related to the
2418	2418	13 direct or indirect acquisition, use, maintenance or
2419	2419	14 management, ownership, sale, exchange, or any other
2420	2420	15 disposition of intangible property; (2) losses
2421	2421	16 incurred, directly or indirectly, from factoring
2422	2422	17 transactions or discounting transactions; (3) royalty,
2423	2423	18 patent, technical, and copyright fees; (4) licensing
2424	2424	19 fees; and (5) other similar expenses and costs. For
2425	2425	20 purposes of this subparagraph, "intangible property"
2426	2426	21 includes patents, patent applications, trade names,
2427	2427	22 trademarks, service marks, copyrights, mask works,
2428	2428	23 trade secrets, and similar types of intangible assets.
2429	2429	24 This paragraph shall not apply to the following:
2430	2430	25 (i) any item of intangible expenses or costs
2431	2431	26 paid, accrued, or incurred, directly or
2432	2432
2433	2433
2434	2434
2435	2435
2436	2436
2437	2437	SB0219 - 67 - LRB104 07439 HLH 17480 b
2438	2438
2439	2439
2440	2440	SB0219- 68 -LRB104 07439 HLH 17480 b SB0219 - 68 - LRB104 07439 HLH 17480 b
2441	2441	SB0219 - 68 - LRB104 07439 HLH 17480 b
2442	2442	1 indirectly, from a transaction with a person who
2443	2443	2 is subject in a foreign country or state, other
2444	2444	3 than a state which requires mandatory unitary
2445	2445	4 reporting, to a tax on or measured by net income
2446	2446	5 with respect to such item; or
2447	2447	6 (ii) any item of intangible expense or cost
2448	2448	7 paid, accrued, or incurred, directly or
2449	2449	8 indirectly, if the taxpayer can establish, based
2450	2450	9 on a preponderance of the evidence, both of the
2451	2451	10 following:
2452	2452	11 (a) the person during the same taxable
2453	2453	12 year paid, accrued, or incurred, the
2454	2454	13 intangible expense or cost to a person that is
2455	2455	14 not a related member, and
2456	2456	15 (b) the transaction giving rise to the
2457	2457	16 intangible expense or cost between the
2458	2458	17 taxpayer and the person did not have as a
2459	2459	18 principal purpose the avoidance of Illinois
2460	2460	19 income tax, and is paid pursuant to a contract
2461	2461	20 or agreement that reflects arm's-length terms;
2462	2462	21 or
2463	2463	22 (iii) any item of intangible expense or cost
2464	2464	23 paid, accrued, or incurred, directly or
2465	2465	24 indirectly, from a transaction with a person if
2466	2466	25 the taxpayer establishes by clear and convincing
2467	2467	26 evidence, that the adjustments are unreasonable;
2468	2468
2469	2469
2470	2470
2471	2471
2472	2472
2473	2473	SB0219 - 68 - LRB104 07439 HLH 17480 b
2474	2474
2475	2475
2476	2476	SB0219- 69 -LRB104 07439 HLH 17480 b SB0219 - 69 - LRB104 07439 HLH 17480 b
2477	2477	SB0219 - 69 - LRB104 07439 HLH 17480 b
2478	2478	1 or if the taxpayer and the Director agree in
2479	2479	2 writing to the application or use of an
2480	2480	3 alternative method of apportionment under Section
2481	2481	4 304(f);
2482	2482	5 Nothing in this subsection shall preclude the
2483	2483	6 Director from making any other adjustment
2484	2484	7 otherwise allowed under Section 404 of this Act
2485	2485	8 for any tax year beginning after the effective
2486	2486	9 date of this amendment provided such adjustment is
2487	2487	10 made pursuant to regulation adopted by the
2488	2488	11 Department and such regulations provide methods
2489	2489	12 and standards by which the Department will utilize
2490	2490	13 its authority under Section 404 of this Act;
2491	2491	14 (G-14) For taxable years ending on or after
2492	2492	15 December 31, 2008, an amount equal to the amount of
2493	2493	16 insurance premium expenses and costs otherwise allowed
2494	2494	17 as a deduction in computing base income, and that were
2495	2495	18 paid, accrued, or incurred, directly or indirectly, to
2496	2496	19 a person who would be a member of the same unitary
2497	2497	20 business group but for the fact that the person is
2498	2498	21 prohibited under Section 1501(a)(27) from being
2499	2499	22 included in the unitary business group because he or
2500	2500	23 she is ordinarily required to apportion business
2501	2501	24 income under different subsections of Section 304. The
2502	2502	25 addition modification required by this subparagraph
2503	2503	26 shall be reduced to the extent that dividends were
2504	2504
2505	2505
2506	2506
2507	2507
2508	2508
2509	2509	SB0219 - 69 - LRB104 07439 HLH 17480 b
2510	2510
2511	2511
2512	2512	SB0219- 70 -LRB104 07439 HLH 17480 b SB0219 - 70 - LRB104 07439 HLH 17480 b
2513	2513	SB0219 - 70 - LRB104 07439 HLH 17480 b
2514	2514	1 included in base income of the unitary group for the
2515	2515	2 same taxable year and received by the taxpayer or by a
2516	2516	3 member of the taxpayer's unitary business group
2517	2517	4 (including amounts included in gross income under
2518	2518	5 Sections 951 through 964 of the Internal Revenue Code
2519	2519	6 and amounts included in gross income under Section 78
2520	2520	7 of the Internal Revenue Code) with respect to the
2521	2521	8 stock of the same person to whom the premiums and costs
2522	2522	9 were directly or indirectly paid, incurred, or
2523	2523	10 accrued. The preceding sentence does not apply to the
2524	2524	11 extent that the same dividends caused a reduction to
2525	2525	12 the addition modification required under Section
2526	2526	13 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2527	2527	14 Act;
2528	2528	15 (G-15) An amount equal to the credit allowable to
2529	2529	16 the taxpayer under Section 218(a) of this Act,
2530	2530	17 determined without regard to Section 218(c) of this
2531	2531	18 Act;
2532	2532	19 (G-16) For taxable years ending on or after
2533	2533	20 December 31, 2017, an amount equal to the deduction
2534	2534	21 allowed under Section 199 of the Internal Revenue Code
2535	2535	22 for the taxable year;
2536	2536	23 (G-17) the amount that is claimed as a federal
2537	2537	24 deduction when computing the taxpayer's federal
2538	2538	25 taxable income for the taxable year and that is
2539	2539	26 attributable to an endowment gift for which the
2540	2540
2541	2541
2542	2542
2543	2543
2544	2544
2545	2545	SB0219 - 70 - LRB104 07439 HLH 17480 b
2546	2546
2547	2547
2548	2548	SB0219- 71 -LRB104 07439 HLH 17480 b SB0219 - 71 - LRB104 07439 HLH 17480 b
2549	2549	SB0219 - 71 - LRB104 07439 HLH 17480 b
2550	2550	1 taxpayer receives a credit under the Illinois Gives
2551	2551	2 Tax Credit Act;
2552	2552	3 and by deducting from the total so obtained the sum of the
2553	2553	4 following amounts:
2554	2554	5 (H) An amount equal to all amounts included in
2555	2555	6 such total pursuant to the provisions of Sections
2556	2556	7 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2557	2557	8 of the Internal Revenue Code or included in such total
2558	2558	9 as distributions under the provisions of any
2559	2559	10 retirement or disability plan for employees of any
2560	2560	11 governmental agency or unit, or retirement payments to
2561	2561	12 retired partners, which payments are excluded in
2562	2562	13 computing net earnings from self employment by Section
2563	2563	14 1402 of the Internal Revenue Code and regulations
2564	2564	15 adopted pursuant thereto;
2565	2565	16 (I) The valuation limitation amount;
2566	2566	17 (J) An amount equal to the amount of any tax
2567	2567	18 imposed by this Act which was refunded to the taxpayer
2568	2568	19 and included in such total for the taxable year;
2569	2569	20 (K) An amount equal to all amounts included in
2570	2570	21 taxable income as modified by subparagraphs (A), (B),
2571	2571	22 (C), (D), (E), (F) and (G) which are exempt from
2572	2572	23 taxation by this State either by reason of its
2573	2573	24 statutes or Constitution or by reason of the
2574	2574	25 Constitution, treaties or statutes of the United
2575	2575	26 States; provided that, in the case of any statute of
2576	2576
2577	2577
2578	2578
2579	2579
2580	2580
2581	2581	SB0219 - 71 - LRB104 07439 HLH 17480 b
2582	2582
2583	2583
2584	2584	SB0219- 72 -LRB104 07439 HLH 17480 b SB0219 - 72 - LRB104 07439 HLH 17480 b
2585	2585	SB0219 - 72 - LRB104 07439 HLH 17480 b
2586	2586	1 this State that exempts income derived from bonds or
2587	2587	2 other obligations from the tax imposed under this Act,
2588	2588	3 the amount exempted shall be the interest net of bond
2589	2589	4 premium amortization;
2590	2590	5 (L) With the exception of any amounts subtracted
2591	2591	6 under subparagraph (K), an amount equal to the sum of
2592	2592	7 all amounts disallowed as deductions by (i) Sections
2593	2593	8 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
2594	2594	9 and all amounts of expenses allocable to interest and
2595	2595	10 disallowed as deductions by Section 265(a)(1) of the
2596	2596	11 Internal Revenue Code; and (ii) for taxable years
2597	2597	12 ending on or after August 13, 1999, Sections
2598	2598	13 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
2599	2599	14 Internal Revenue Code, plus, (iii) for taxable years
2600	2600	15 ending on or after December 31, 2011, Section
2601	2601	16 45G(e)(3) of the Internal Revenue Code and, for
2602	2602	17 taxable years ending on or after December 31, 2008,
2603	2603	18 any amount included in gross income under Section 87
2604	2604	19 of the Internal Revenue Code; the provisions of this
2605	2605	20 subparagraph are exempt from the provisions of Section
2606	2606	21 250;
2607	2607	22 (M) An amount equal to those dividends included in
2608	2608	23 such total which were paid by a corporation which
2609	2609	24 conducts business operations in a River Edge
2610	2610	25 Redevelopment Zone or zones created under the River
2611	2611	26 Edge Redevelopment Zone Act and conducts substantially
2612	2612
2613	2613
2614	2614
2615	2615
2616	2616
2617	2617	SB0219 - 72 - LRB104 07439 HLH 17480 b
2618	2618
2619	2619
2620	2620	SB0219- 73 -LRB104 07439 HLH 17480 b SB0219 - 73 - LRB104 07439 HLH 17480 b
2621	2621	SB0219 - 73 - LRB104 07439 HLH 17480 b
2622	2622	1 all of its operations in a River Edge Redevelopment
2623	2623	2 Zone or zones. This subparagraph (M) is exempt from
2624	2624	3 the provisions of Section 250;
2625	2625	4 (N) An amount equal to any contribution made to a
2626	2626	5 job training project established pursuant to the Tax
2627	2627	6 Increment Allocation Redevelopment Act;
2628	2628	7 (O) An amount equal to those dividends included in
2629	2629	8 such total that were paid by a corporation that
2630	2630	9 conducts business operations in a federally designated
2631	2631	10 Foreign Trade Zone or Sub-Zone and that is designated
2632	2632	11 a High Impact Business located in Illinois; provided
2633	2633	12 that dividends eligible for the deduction provided in
2634	2634	13 subparagraph (M) of paragraph (2) of this subsection
2635	2635	14 shall not be eligible for the deduction provided under
2636	2636	15 this subparagraph (O);
2637	2637	16 (P) An amount equal to the amount of the deduction
2638	2638	17 used to compute the federal income tax credit for
2639	2639	18 restoration of substantial amounts held under claim of
2640	2640	19 right for the taxable year pursuant to Section 1341 of
2641	2641	20 the Internal Revenue Code;
2642	2642	21 (Q) For taxable year 1999 and thereafter, an
2643	2643	22 amount equal to the amount of any (i) distributions,
2644	2644	23 to the extent includible in gross income for federal
2645	2645	24 income tax purposes, made to the taxpayer because of
2646	2646	25 his or her status as a victim of persecution for racial
2647	2647	26 or religious reasons by Nazi Germany or any other Axis
2648	2648
2649	2649
2650	2650
2651	2651
2652	2652
2653	2653	SB0219 - 73 - LRB104 07439 HLH 17480 b
2654	2654
2655	2655
2656	2656	SB0219- 74 -LRB104 07439 HLH 17480 b SB0219 - 74 - LRB104 07439 HLH 17480 b
2657	2657	SB0219 - 74 - LRB104 07439 HLH 17480 b
2658	2658	1 regime or as an heir of the victim and (ii) items of
2659	2659	2 income, to the extent includible in gross income for
2660	2660	3 federal income tax purposes, attributable to, derived
2661	2661	4 from or in any way related to assets stolen from,
2662	2662	5 hidden from, or otherwise lost to a victim of
2663	2663	6 persecution for racial or religious reasons by Nazi
2664	2664	7 Germany or any other Axis regime immediately prior to,
2665	2665	8 during, and immediately after World War II, including,
2666	2666	9 but not limited to, interest on the proceeds
2667	2667	10 receivable as insurance under policies issued to a
2668	2668	11 victim of persecution for racial or religious reasons
2669	2669	12 by Nazi Germany or any other Axis regime by European
2670	2670	13 insurance companies immediately prior to and during
2671	2671	14 World War II; provided, however, this subtraction from
2672	2672	15 federal adjusted gross income does not apply to assets
2673	2673	16 acquired with such assets or with the proceeds from
2674	2674	17 the sale of such assets; provided, further, this
2675	2675	18 paragraph shall only apply to a taxpayer who was the
2676	2676	19 first recipient of such assets after their recovery
2677	2677	20 and who is a victim of persecution for racial or
2678	2678	21 religious reasons by Nazi Germany or any other Axis
2679	2679	22 regime or as an heir of the victim. The amount of and
2680	2680	23 the eligibility for any public assistance, benefit, or
2681	2681	24 similar entitlement is not affected by the inclusion
2682	2682	25 of items (i) and (ii) of this paragraph in gross income
2683	2683	26 for federal income tax purposes. This paragraph is
2684	2684
2685	2685
2686	2686
2687	2687
2688	2688
2689	2689	SB0219 - 74 - LRB104 07439 HLH 17480 b
2690	2690
2691	2691
2692	2692	SB0219- 75 -LRB104 07439 HLH 17480 b SB0219 - 75 - LRB104 07439 HLH 17480 b
2693	2693	SB0219 - 75 - LRB104 07439 HLH 17480 b
2694	2694	1 exempt from the provisions of Section 250;
2695	2695	2 (R) For taxable years 2001 and thereafter, for the
2696	2696	3 taxable year in which the bonus depreciation deduction
2697	2697	4 is taken on the taxpayer's federal income tax return
2698	2698	5 under subsection (k) of Section 168 of the Internal
2699	2699	6 Revenue Code and for each applicable taxable year
2700	2700	7 thereafter, an amount equal to "x", where:
2701	2701	8 (1) "y" equals the amount of the depreciation
2702	2702	9 deduction taken for the taxable year on the
2703	2703	10 taxpayer's federal income tax return on property
2704	2704	11 for which the bonus depreciation deduction was
2705	2705	12 taken in any year under subsection (k) of Section
2706	2706	13 168 of the Internal Revenue Code, but not
2707	2707	14 including the bonus depreciation deduction;
2708	2708	15 (2) for taxable years ending on or before
2709	2709	16 December 31, 2005, "x" equals "y" multiplied by 30
2710	2710	17 and then divided by 70 (or "y" multiplied by
2711	2711	18 0.429); and
2712	2712	19 (3) for taxable years ending after December
2713	2713	20 31, 2005:
2714	2714	21 (i) for property on which a bonus
2715	2715	22 depreciation deduction of 30% of the adjusted
2716	2716	23 basis was taken, "x" equals "y" multiplied by
2717	2717	24 30 and then divided by 70 (or "y" multiplied
2718	2718	25 by 0.429);
2719	2719	26 (ii) for property on which a bonus
2720	2720
2721	2721
2722	2722
2723	2723
2724	2724
2725	2725	SB0219 - 75 - LRB104 07439 HLH 17480 b
2726	2726
2727	2727
2728	2728	SB0219- 76 -LRB104 07439 HLH 17480 b SB0219 - 76 - LRB104 07439 HLH 17480 b
2729	2729	SB0219 - 76 - LRB104 07439 HLH 17480 b
2730	2730	1 depreciation deduction of 50% of the adjusted
2731	2731	2 basis was taken, "x" equals "y" multiplied by
2732	2732	3 1.0;
2733	2733	4 (iii) for property on which a bonus
2734	2734	5 depreciation deduction of 100% of the adjusted
2735	2735	6 basis was taken in a taxable year ending on or
2736	2736	7 after December 31, 2021, "x" equals the
2737	2737	8 depreciation deduction that would be allowed
2738	2738	9 on that property if the taxpayer had made the
2739	2739	10 election under Section 168(k)(7) of the
2740	2740	11 Internal Revenue Code to not claim bonus
2741	2741	12 depreciation on that property; and
2742	2742	13 (iv) for property on which a bonus
2743	2743	14 depreciation deduction of a percentage other
2744	2744	15 than 30%, 50% or 100% of the adjusted basis
2745	2745	16 was taken in a taxable year ending on or after
2746	2746	17 December 31, 2021, "x" equals "y" multiplied
2747	2747	18 by 100 times the percentage bonus depreciation
2748	2748	19 on the property (that is, 100(bonus%)) and
2749	2749	20 then divided by 100 times 1 minus the
2750	2750	21 percentage bonus depreciation on the property
2751	2751	22 (that is, 100(1-bonus%)).
2752	2752	23 The aggregate amount deducted under this
2753	2753	24 subparagraph in all taxable years for any one piece of
2754	2754	25 property may not exceed the amount of the bonus
2755	2755	26 depreciation deduction taken on that property on the
2756	2756
2757	2757
2758	2758
2759	2759
2760	2760
2761	2761	SB0219 - 76 - LRB104 07439 HLH 17480 b
2762	2762
2763	2763
2764	2764	SB0219- 77 -LRB104 07439 HLH 17480 b SB0219 - 77 - LRB104 07439 HLH 17480 b
2765	2765	SB0219 - 77 - LRB104 07439 HLH 17480 b
2766	2766	1 taxpayer's federal income tax return under subsection
2767	2767	2 (k) of Section 168 of the Internal Revenue Code. This
2768	2768	3 subparagraph (R) is exempt from the provisions of
2769	2769	4 Section 250;
2770	2770	5 (S) If the taxpayer sells, transfers, abandons, or
2771	2771	6 otherwise disposes of property for which the taxpayer
2772	2772	7 was required in any taxable year to make an addition
2773	2773	8 modification under subparagraph (G-10), then an amount
2774	2774	9 equal to that addition modification.
2775	2775	10 If the taxpayer continues to own property through
2776	2776	11 the last day of the last tax year for which a
2777	2777	12 subtraction is allowed with respect to that property
2778	2778	13 under subparagraph (R) and for which the taxpayer was
2779	2779	14 required in any taxable year to make an addition
2780	2780	15 modification under subparagraph (G-10), then an amount
2781	2781	16 equal to that addition modification.
2782	2782	17 The taxpayer is allowed to take the deduction
2783	2783	18 under this subparagraph only once with respect to any
2784	2784	19 one piece of property.
2785	2785	20 This subparagraph (S) is exempt from the
2786	2786	21 provisions of Section 250;
2787	2787	22 (T) The amount of (i) any interest income (net of
2788	2788	23 the deductions allocable thereto) taken into account
2789	2789	24 for the taxable year with respect to a transaction
2790	2790	25 with a taxpayer that is required to make an addition
2791	2791	26 modification with respect to such transaction under
2792	2792
2793	2793
2794	2794
2795	2795
2796	2796
2797	2797	SB0219 - 77 - LRB104 07439 HLH 17480 b
2798	2798
2799	2799
2800	2800	SB0219- 78 -LRB104 07439 HLH 17480 b SB0219 - 78 - LRB104 07439 HLH 17480 b
2801	2801	SB0219 - 78 - LRB104 07439 HLH 17480 b
2802	2802	1 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2803	2803	2 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2804	2804	3 the amount of such addition modification and (ii) any
2805	2805	4 income from intangible property (net of the deductions
2806	2806	5 allocable thereto) taken into account for the taxable
2807	2807	6 year with respect to a transaction with a taxpayer
2808	2808	7 that is required to make an addition modification with
2809	2809	8 respect to such transaction under Section
2810	2810	9 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2811	2811	10 203(d)(2)(D-8), but not to exceed the amount of such
2812	2812	11 addition modification. This subparagraph (T) is exempt
2813	2813	12 from the provisions of Section 250;
2814	2814	13 (U) An amount equal to the interest income taken
2815	2815	14 into account for the taxable year (net of the
2816	2816	15 deductions allocable thereto) with respect to
2817	2817	16 transactions with (i) a foreign person who would be a
2818	2818	17 member of the taxpayer's unitary business group but
2819	2819	18 for the fact the foreign person's business activity
2820	2820	19 outside the United States is 80% or more of that
2821	2821	20 person's total business activity and (ii) for taxable
2822	2822	21 years ending on or after December 31, 2008, to a person
2823	2823	22 who would be a member of the same unitary business
2824	2824	23 group but for the fact that the person is prohibited
2825	2825	24 under Section 1501(a)(27) from being included in the
2826	2826	25 unitary business group because he or she is ordinarily
2827	2827	26 required to apportion business income under different
2828	2828
2829	2829
2830	2830
2831	2831
2832	2832
2833	2833	SB0219 - 78 - LRB104 07439 HLH 17480 b
2834	2834
2835	2835
2836	2836	SB0219- 79 -LRB104 07439 HLH 17480 b SB0219 - 79 - LRB104 07439 HLH 17480 b
2837	2837	SB0219 - 79 - LRB104 07439 HLH 17480 b
2838	2838	1 subsections of Section 304, but not to exceed the
2839	2839	2 addition modification required to be made for the same
2840	2840	3 taxable year under Section 203(c)(2)(G-12) for
2841	2841	4 interest paid, accrued, or incurred, directly or
2842	2842	5 indirectly, to the same person. This subparagraph (U)
2843	2843	6 is exempt from the provisions of Section 250;
2844	2844	7 (V) An amount equal to the income from intangible
2845	2845	8 property taken into account for the taxable year (net
2846	2846	9 of the deductions allocable thereto) with respect to
2847	2847	10 transactions with (i) a foreign person who would be a
2848	2848	11 member of the taxpayer's unitary business group but
2849	2849	12 for the fact that the foreign person's business
2850	2850	13 activity outside the United States is 80% or more of
2851	2851	14 that person's total business activity and (ii) for
2852	2852	15 taxable years ending on or after December 31, 2008, to
2853	2853	16 a person who would be a member of the same unitary
2854	2854	17 business group but for the fact that the person is
2855	2855	18 prohibited under Section 1501(a)(27) from being
2856	2856	19 included in the unitary business group because he or
2857	2857	20 she is ordinarily required to apportion business
2858	2858	21 income under different subsections of Section 304, but
2859	2859	22 not to exceed the addition modification required to be
2860	2860	23 made for the same taxable year under Section
2861	2861	24 203(c)(2)(G-13) for intangible expenses and costs
2862	2862	25 paid, accrued, or incurred, directly or indirectly, to
2863	2863	26 the same foreign person. This subparagraph (V) is
2864	2864
2865	2865
2866	2866
2867	2867
2868	2868
2869	2869	SB0219 - 79 - LRB104 07439 HLH 17480 b
2870	2870
2871	2871
2872	2872	SB0219- 80 -LRB104 07439 HLH 17480 b SB0219 - 80 - LRB104 07439 HLH 17480 b
2873	2873	SB0219 - 80 - LRB104 07439 HLH 17480 b
2874	2874	1 exempt from the provisions of Section 250;
2875	2875	2 (W) in the case of an estate, an amount equal to
2876	2876	3 all amounts included in such total pursuant to the
2877	2877	4 provisions of Section 111 of the Internal Revenue Code
2878	2878	5 as a recovery of items previously deducted by the
2879	2879	6 decedent from adjusted gross income in the computation
2880	2880	7 of taxable income. This subparagraph (W) is exempt
2881	2881	8 from Section 250;
2882	2882	9 (X) an amount equal to the refund included in such
2883	2883	10 total of any tax deducted for federal income tax
2884	2884	11 purposes, to the extent that deduction was added back
2885	2885	12 under subparagraph (F). This subparagraph (X) is
2886	2886	13 exempt from the provisions of Section 250;
2887	2887	14 (Y) For taxable years ending on or after December
2888	2888	15 31, 2011, in the case of a taxpayer who was required to
2889	2889	16 add back any insurance premiums under Section
2890	2890	17 203(c)(2)(G-14), such taxpayer may elect to subtract
2891	2891	18 that part of a reimbursement received from the
2892	2892	19 insurance company equal to the amount of the expense
2893	2893	20 or loss (including expenses incurred by the insurance
2894	2894	21 company) that would have been taken into account as a
2895	2895	22 deduction for federal income tax purposes if the
2896	2896	23 expense or loss had been uninsured. If a taxpayer
2897	2897	24 makes the election provided for by this subparagraph
2898	2898	25 (Y), the insurer to which the premiums were paid must
2899	2899	26 add back to income the amount subtracted by the
2900	2900
2901	2901
2902	2902
2903	2903
2904	2904
2905	2905	SB0219 - 80 - LRB104 07439 HLH 17480 b
2906	2906
2907	2907
2908	2908	SB0219- 81 -LRB104 07439 HLH 17480 b SB0219 - 81 - LRB104 07439 HLH 17480 b
2909	2909	SB0219 - 81 - LRB104 07439 HLH 17480 b
2910	2910	1 taxpayer pursuant to this subparagraph (Y). This
2911	2911	2 subparagraph (Y) is exempt from the provisions of
2912	2912	3 Section 250;
2913	2913	4 (Z) For taxable years beginning after December 31,
2914	2914	5 2018 and before January 1, 2026, the amount of excess
2915	2915	6 business loss of the taxpayer disallowed as a
2916	2916	7 deduction by Section 461(l)(1)(B) of the Internal
2917	2917	8 Revenue Code; and
2918	2918	9 (AA) For taxable years beginning on or after
2919	2919	10 January 1, 2023, for any cannabis establishment
2920	2920	11 operating in this State and licensed under the
2921	2921	12 Cannabis Regulation and Tax Act or any cannabis
2922	2922	13 cultivation center or medical cannabis dispensing
2923	2923	14 organization operating in this State and licensed
2924	2924	15 under the Compassionate Use of Medical Cannabis
2925	2925	16 Program Act, an amount equal to the deductions that
2926	2926	17 were disallowed under Section 280E of the Internal
2927	2927	18 Revenue Code for the taxable year and that would not be
2928	2928	19 added back under this subsection. The provisions of
2929	2929	20 this subparagraph (AA) are exempt from the provisions
2930	2930	21 of Section 250.
2931	2931	22 (3) Limitation. The amount of any modification
2932	2932	23 otherwise required under this subsection shall, under
2933	2933	24 regulations prescribed by the Department, be adjusted by
2934	2934	25 any amounts included therein which were properly paid,
2935	2935	26 credited, or required to be distributed, or permanently
2936	2936
2937	2937
2938	2938
2939	2939
2940	2940
2941	2941	SB0219 - 81 - LRB104 07439 HLH 17480 b
2942	2942
2943	2943
2944	2944	SB0219- 82 -LRB104 07439 HLH 17480 b SB0219 - 82 - LRB104 07439 HLH 17480 b
2945	2945	SB0219 - 82 - LRB104 07439 HLH 17480 b
2946	2946	1 set aside for charitable purposes pursuant to Internal
2947	2947	2 Revenue Code Section 642(c) during the taxable year.
2948	2948	3 (d) Partnerships.
2949	2949	4 (1) In general. In the case of a partnership, base
2950	2950	5 income means an amount equal to the taxpayer's taxable
2951	2951	6 income for the taxable year as modified by paragraph (2).
2952	2952	7 (2) Modifications. The taxable income referred to in
2953	2953	8 paragraph (1) shall be modified by adding thereto the sum
2954	2954	9 of the following amounts:
2955	2955	10 (A) An amount equal to all amounts paid or accrued
2956	2956	11 to the taxpayer as interest or dividends during the
2957	2957	12 taxable year to the extent excluded from gross income
2958	2958	13 in the computation of taxable income;
2959	2959	14 (B) An amount equal to the amount of tax imposed by
2960	2960	15 this Act to the extent deducted from gross income for
2961	2961	16 the taxable year;
2962	2962	17 (C) The amount of deductions allowed to the
2963	2963	18 partnership pursuant to Section 707 (c) of the
2964	2964	19 Internal Revenue Code in calculating its taxable
2965	2965	20 income;
2966	2966	21 (D) An amount equal to the amount of the capital
2967	2967	22 gain deduction allowable under the Internal Revenue
2968	2968	23 Code, to the extent deducted from gross income in the
2969	2969	24 computation of taxable income;
2970	2970	25 (D-5) For taxable years 2001 and thereafter, an
2971	2971
2972	2972
2973	2973
2974	2974
2975	2975
2976	2976	SB0219 - 82 - LRB104 07439 HLH 17480 b
2977	2977
2978	2978
2979	2979	SB0219- 83 -LRB104 07439 HLH 17480 b SB0219 - 83 - LRB104 07439 HLH 17480 b
2980	2980	SB0219 - 83 - LRB104 07439 HLH 17480 b
2981	2981	1 amount equal to the bonus depreciation deduction taken
2982	2982	2 on the taxpayer's federal income tax return for the
2983	2983	3 taxable year under subsection (k) of Section 168 of
2984	2984	4 the Internal Revenue Code;
2985	2985	5 (D-6) If the taxpayer sells, transfers, abandons,
2986	2986	6 or otherwise disposes of property for which the
2987	2987	7 taxpayer was required in any taxable year to make an
2988	2988	8 addition modification under subparagraph (D-5), then
2989	2989	9 an amount equal to the aggregate amount of the
2990	2990	10 deductions taken in all taxable years under
2991	2991	11 subparagraph (O) with respect to that property.
2992	2992	12 If the taxpayer continues to own property through
2993	2993	13 the last day of the last tax year for which a
2994	2994	14 subtraction is allowed with respect to that property
2995	2995	15 under subparagraph (O) and for which the taxpayer was
2996	2996	16 allowed in any taxable year to make a subtraction
2997	2997	17 modification under subparagraph (O), then an amount
2998	2998	18 equal to that subtraction modification.
2999	2999	19 The taxpayer is required to make the addition
3000	3000	20 modification under this subparagraph only once with
3001	3001	21 respect to any one piece of property;
3002	3002	22 (D-7) An amount equal to the amount otherwise
3003	3003	23 allowed as a deduction in computing base income for
3004	3004	24 interest paid, accrued, or incurred, directly or
3005	3005	25 indirectly, (i) for taxable years ending on or after
3006	3006	26 December 31, 2004, to a foreign person who would be a
3007	3007
3008	3008
3009	3009
3010	3010
3011	3011
3012	3012	SB0219 - 83 - LRB104 07439 HLH 17480 b
3013	3013
3014	3014
3015	3015	SB0219- 84 -LRB104 07439 HLH 17480 b SB0219 - 84 - LRB104 07439 HLH 17480 b
3016	3016	SB0219 - 84 - LRB104 07439 HLH 17480 b
3017	3017	1 member of the same unitary business group but for the
3018	3018	2 fact the foreign person's business activity outside
3019	3019	3 the United States is 80% or more of the foreign
3020	3020	4 person's total business activity and (ii) for taxable
3021	3021	5 years ending on or after December 31, 2008, to a person
3022	3022	6 who would be a member of the same unitary business
3023	3023	7 group but for the fact that the person is prohibited
3024	3024	8 under Section 1501(a)(27) from being included in the
3025	3025	9 unitary business group because he or she is ordinarily
3026	3026	10 required to apportion business income under different
3027	3027	11 subsections of Section 304. The addition modification
3028	3028	12 required by this subparagraph shall be reduced to the
3029	3029	13 extent that dividends were included in base income of
3030	3030	14 the unitary group for the same taxable year and
3031	3031	15 received by the taxpayer or by a member of the
3032	3032	16 taxpayer's unitary business group (including amounts
3033	3033	17 included in gross income pursuant to Sections 951
3034	3034	18 through 964 of the Internal Revenue Code and amounts
3035	3035	19 included in gross income under Section 78 of the
3036	3036	20 Internal Revenue Code) with respect to the stock of
3037	3037	21 the same person to whom the interest was paid,
3038	3038	22 accrued, or incurred.
3039	3039	23 This paragraph shall not apply to the following:
3040	3040	24 (i) an item of interest paid, accrued, or
3041	3041	25 incurred, directly or indirectly, to a person who
3042	3042	26 is subject in a foreign country or state, other
3043	3043
3044	3044
3045	3045
3046	3046
3047	3047
3048	3048	SB0219 - 84 - LRB104 07439 HLH 17480 b
3049	3049
3050	3050
3051	3051	SB0219- 85 -LRB104 07439 HLH 17480 b SB0219 - 85 - LRB104 07439 HLH 17480 b
3052	3052	SB0219 - 85 - LRB104 07439 HLH 17480 b
3053	3053	1 than a state which requires mandatory unitary
3054	3054	2 reporting, to a tax on or measured by net income
3055	3055	3 with respect to such interest; or
3056	3056	4 (ii) an item of interest paid, accrued, or
3057	3057	5 incurred, directly or indirectly, to a person if
3058	3058	6 the taxpayer can establish, based on a
3059	3059	7 preponderance of the evidence, both of the
3060	3060	8 following:
3061	3061	9 (a) the person, during the same taxable
3062	3062	10 year, paid, accrued, or incurred, the interest
3063	3063	11 to a person that is not a related member, and
3064	3064	12 (b) the transaction giving rise to the
3065	3065	13 interest expense between the taxpayer and the
3066	3066	14 person did not have as a principal purpose the
3067	3067	15 avoidance of Illinois income tax, and is paid
3068	3068	16 pursuant to a contract or agreement that
3069	3069	17 reflects an arm's-length interest rate and
3070	3070	18 terms; or
3071	3071	19 (iii) the taxpayer can establish, based on
3072	3072	20 clear and convincing evidence, that the interest
3073	3073	21 paid, accrued, or incurred relates to a contract
3074	3074	22 or agreement entered into at arm's-length rates
3075	3075	23 and terms and the principal purpose for the
3076	3076	24 payment is not federal or Illinois tax avoidance;
3077	3077	25 or
3078	3078	26 (iv) an item of interest paid, accrued, or
3079	3079
3080	3080
3081	3081
3082	3082
3083	3083
3084	3084	SB0219 - 85 - LRB104 07439 HLH 17480 b
3085	3085
3086	3086
3087	3087	SB0219- 86 -LRB104 07439 HLH 17480 b SB0219 - 86 - LRB104 07439 HLH 17480 b
3088	3088	SB0219 - 86 - LRB104 07439 HLH 17480 b
3089	3089	1 incurred, directly or indirectly, to a person if
3090	3090	2 the taxpayer establishes by clear and convincing
3091	3091	3 evidence that the adjustments are unreasonable; or
3092	3092	4 if the taxpayer and the Director agree in writing
3093	3093	5 to the application or use of an alternative method
3094	3094	6 of apportionment under Section 304(f).
3095	3095	7 Nothing in this subsection shall preclude the
3096	3096	8 Director from making any other adjustment
3097	3097	9 otherwise allowed under Section 404 of this Act
3098	3098	10 for any tax year beginning after the effective
3099	3099	11 date of this amendment provided such adjustment is
3100	3100	12 made pursuant to regulation adopted by the
3101	3101	13 Department and such regulations provide methods
3102	3102	14 and standards by which the Department will utilize
3103	3103	15 its authority under Section 404 of this Act; and
3104	3104	16 (D-8) An amount equal to the amount of intangible
3105	3105	17 expenses and costs otherwise allowed as a deduction in
3106	3106	18 computing base income, and that were paid, accrued, or
3107	3107	19 incurred, directly or indirectly, (i) for taxable
3108	3108	20 years ending on or after December 31, 2004, to a
3109	3109	21 foreign person who would be a member of the same
3110	3110	22 unitary business group but for the fact that the
3111	3111	23 foreign person's business activity outside the United
3112	3112	24 States is 80% or more of that person's total business
3113	3113	25 activity and (ii) for taxable years ending on or after
3114	3114	26 December 31, 2008, to a person who would be a member of
3115	3115
3116	3116
3117	3117
3118	3118
3119	3119
3120	3120	SB0219 - 86 - LRB104 07439 HLH 17480 b
3121	3121
3122	3122
3123	3123	SB0219- 87 -LRB104 07439 HLH 17480 b SB0219 - 87 - LRB104 07439 HLH 17480 b
3124	3124	SB0219 - 87 - LRB104 07439 HLH 17480 b
3125	3125	1 the same unitary business group but for the fact that
3126	3126	2 the person is prohibited under Section 1501(a)(27)
3127	3127	3 from being included in the unitary business group
3128	3128	4 because he or she is ordinarily required to apportion
3129	3129	5 business income under different subsections of Section
3130	3130	6 304. The addition modification required by this
3131	3131	7 subparagraph shall be reduced to the extent that
3132	3132	8 dividends were included in base income of the unitary
3133	3133	9 group for the same taxable year and received by the
3134	3134	10 taxpayer or by a member of the taxpayer's unitary
3135	3135	11 business group (including amounts included in gross
3136	3136	12 income pursuant to Sections 951 through 964 of the
3137	3137	13 Internal Revenue Code and amounts included in gross
3138	3138	14 income under Section 78 of the Internal Revenue Code)
3139	3139	15 with respect to the stock of the same person to whom
3140	3140	16 the intangible expenses and costs were directly or
3141	3141	17 indirectly paid, incurred or accrued. The preceding
3142	3142	18 sentence shall not apply to the extent that the same
3143	3143	19 dividends caused a reduction to the addition
3144	3144	20 modification required under Section 203(d)(2)(D-7) of
3145	3145	21 this Act. As used in this subparagraph, the term
3146	3146	22 "intangible expenses and costs" includes (1) expenses,
3147	3147	23 losses, and costs for, or related to, the direct or
3148	3148	24 indirect acquisition, use, maintenance or management,
3149	3149	25 ownership, sale, exchange, or any other disposition of
3150	3150	26 intangible property; (2) losses incurred, directly or
3151	3151
3152	3152
3153	3153
3154	3154
3155	3155
3156	3156	SB0219 - 87 - LRB104 07439 HLH 17480 b
3157	3157
3158	3158
3159	3159	SB0219- 88 -LRB104 07439 HLH 17480 b SB0219 - 88 - LRB104 07439 HLH 17480 b
3160	3160	SB0219 - 88 - LRB104 07439 HLH 17480 b
3161	3161	1 indirectly, from factoring transactions or discounting
3162	3162	2 transactions; (3) royalty, patent, technical, and
3163	3163	3 copyright fees; (4) licensing fees; and (5) other
3164	3164	4 similar expenses and costs. For purposes of this
3165	3165	5 subparagraph, "intangible property" includes patents,
3166	3166	6 patent applications, trade names, trademarks, service
3167	3167	7 marks, copyrights, mask works, trade secrets, and
3168	3168	8 similar types of intangible assets;
3169	3169	9 This paragraph shall not apply to the following:
3170	3170	10 (i) any item of intangible expenses or costs
3171	3171	11 paid, accrued, or incurred, directly or
3172	3172	12 indirectly, from a transaction with a person who
3173	3173	13 is subject in a foreign country or state, other
3174	3174	14 than a state which requires mandatory unitary
3175	3175	15 reporting, to a tax on or measured by net income
3176	3176	16 with respect to such item; or
3177	3177	17 (ii) any item of intangible expense or cost
3178	3178	18 paid, accrued, or incurred, directly or
3179	3179	19 indirectly, if the taxpayer can establish, based
3180	3180	20 on a preponderance of the evidence, both of the
3181	3181	21 following:
3182	3182	22 (a) the person during the same taxable
3183	3183	23 year paid, accrued, or incurred, the
3184	3184	24 intangible expense or cost to a person that is
3185	3185	25 not a related member, and
3186	3186	26 (b) the transaction giving rise to the
3187	3187
3188	3188
3189	3189
3190	3190
3191	3191
3192	3192	SB0219 - 88 - LRB104 07439 HLH 17480 b
3193	3193
3194	3194
3195	3195	SB0219- 89 -LRB104 07439 HLH 17480 b SB0219 - 89 - LRB104 07439 HLH 17480 b
3196	3196	SB0219 - 89 - LRB104 07439 HLH 17480 b
3197	3197	1 intangible expense or cost between the
3198	3198	2 taxpayer and the person did not have as a
3199	3199	3 principal purpose the avoidance of Illinois
3200	3200	4 income tax, and is paid pursuant to a contract
3201	3201	5 or agreement that reflects arm's-length terms;
3202	3202	6 or
3203	3203	7 (iii) any item of intangible expense or cost
3204	3204	8 paid, accrued, or incurred, directly or
3205	3205	9 indirectly, from a transaction with a person if
3206	3206	10 the taxpayer establishes by clear and convincing
3207	3207	11 evidence, that the adjustments are unreasonable;
3208	3208	12 or if the taxpayer and the Director agree in
3209	3209	13 writing to the application or use of an
3210	3210	14 alternative method of apportionment under Section
3211	3211	15 304(f);
3212	3212	16 Nothing in this subsection shall preclude the
3213	3213	17 Director from making any other adjustment
3214	3214	18 otherwise allowed under Section 404 of this Act
3215	3215	19 for any tax year beginning after the effective
3216	3216	20 date of this amendment provided such adjustment is
3217	3217	21 made pursuant to regulation adopted by the
3218	3218	22 Department and such regulations provide methods
3219	3219	23 and standards by which the Department will utilize
3220	3220	24 its authority under Section 404 of this Act;
3221	3221	25 (D-9) For taxable years ending on or after
3222	3222	26 December 31, 2008, an amount equal to the amount of
3223	3223
3224	3224
3225	3225
3226	3226
3227	3227
3228	3228	SB0219 - 89 - LRB104 07439 HLH 17480 b
3229	3229
3230	3230
3231	3231	SB0219- 90 -LRB104 07439 HLH 17480 b SB0219 - 90 - LRB104 07439 HLH 17480 b
3232	3232	SB0219 - 90 - LRB104 07439 HLH 17480 b
3233	3233	1 insurance premium expenses and costs otherwise allowed
3234	3234	2 as a deduction in computing base income, and that were
3235	3235	3 paid, accrued, or incurred, directly or indirectly, to
3236	3236	4 a person who would be a member of the same unitary
3237	3237	5 business group but for the fact that the person is
3238	3238	6 prohibited under Section 1501(a)(27) from being
3239	3239	7 included in the unitary business group because he or
3240	3240	8 she is ordinarily required to apportion business
3241	3241	9 income under different subsections of Section 304. The
3242	3242	10 addition modification required by this subparagraph
3243	3243	11 shall be reduced to the extent that dividends were
3244	3244	12 included in base income of the unitary group for the
3245	3245	13 same taxable year and received by the taxpayer or by a
3246	3246	14 member of the taxpayer's unitary business group
3247	3247	15 (including amounts included in gross income under
3248	3248	16 Sections 951 through 964 of the Internal Revenue Code
3249	3249	17 and amounts included in gross income under Section 78
3250	3250	18 of the Internal Revenue Code) with respect to the
3251	3251	19 stock of the same person to whom the premiums and costs
3252	3252	20 were directly or indirectly paid, incurred, or
3253	3253	21 accrued. The preceding sentence does not apply to the
3254	3254	22 extent that the same dividends caused a reduction to
3255	3255	23 the addition modification required under Section
3256	3256	24 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
3257	3257	25 (D-10) An amount equal to the credit allowable to
3258	3258	26 the taxpayer under Section 218(a) of this Act,
3259	3259
3260	3260
3261	3261
3262	3262
3263	3263
3264	3264	SB0219 - 90 - LRB104 07439 HLH 17480 b
3265	3265
3266	3266
3267	3267	SB0219- 91 -LRB104 07439 HLH 17480 b SB0219 - 91 - LRB104 07439 HLH 17480 b
3268	3268	SB0219 - 91 - LRB104 07439 HLH 17480 b
3269	3269	1 determined without regard to Section 218(c) of this
3270	3270	2 Act;
3271	3271	3 (D-11) For taxable years ending on or after
3272	3272	4 December 31, 2017, an amount equal to the deduction
3273	3273	5 allowed under Section 199 of the Internal Revenue Code
3274	3274	6 for the taxable year;
3275	3275	7 (D-12) the amount that is claimed as a federal
3276	3276	8 deduction when computing the taxpayer's federal
3277	3277	9 taxable income for the taxable year and that is
3278	3278	10 attributable to an endowment gift for which the
3279	3279	11 taxpayer receives a credit under the Illinois Gives
3280	3280	12 Tax Credit Act;
3281	3281	13 and by deducting from the total so obtained the following
3282	3282	14 amounts:
3283	3283	15 (E) The valuation limitation amount;
3284	3284	16 (F) An amount equal to the amount of any tax
3285	3285	17 imposed by this Act which was refunded to the taxpayer
3286	3286	18 and included in such total for the taxable year;
3287	3287	19 (G) An amount equal to all amounts included in
3288	3288	20 taxable income as modified by subparagraphs (A), (B),
3289	3289	21 (C) and (D) which are exempt from taxation by this
3290	3290	22 State either by reason of its statutes or Constitution
3291	3291	23 or by reason of the Constitution, treaties or statutes
3292	3292	24 of the United States; provided that, in the case of any
3293	3293	25 statute of this State that exempts income derived from
3294	3294	26 bonds or other obligations from the tax imposed under
3295	3295
3296	3296
3297	3297
3298	3298
3299	3299
3300	3300	SB0219 - 91 - LRB104 07439 HLH 17480 b
3301	3301
3302	3302
3303	3303	SB0219- 92 -LRB104 07439 HLH 17480 b SB0219 - 92 - LRB104 07439 HLH 17480 b
3304	3304	SB0219 - 92 - LRB104 07439 HLH 17480 b
3305	3305	1 this Act, the amount exempted shall be the interest
3306	3306	2 net of bond premium amortization;
3307	3307	3 (H) Any income of the partnership which
3308	3308	4 constitutes personal service income as defined in
3309	3309	5 Section 1348(b)(1) of the Internal Revenue Code (as in
3310	3310	6 effect December 31, 1981) or a reasonable allowance
3311	3311	7 for compensation paid or accrued for services rendered
3312	3312	8 by partners to the partnership, whichever is greater;
3313	3313	9 this subparagraph (H) is exempt from the provisions of
3314	3314	10 Section 250;
3315	3315	11 (I) An amount equal to all amounts of income
3316	3316	12 distributable to an entity subject to the Personal
3317	3317	13 Property Tax Replacement Income Tax imposed by
3318	3318	14 subsections (c) and (d) of Section 201 of this Act
3319	3319	15 including amounts distributable to organizations
3320	3320	16 exempt from federal income tax by reason of Section
3321	3321	17 501(a) of the Internal Revenue Code; this subparagraph
3322	3322	18 (I) is exempt from the provisions of Section 250;
3323	3323	19 (J) With the exception of any amounts subtracted
3324	3324	20 under subparagraph (G), an amount equal to the sum of
3325	3325	21 all amounts disallowed as deductions by (i) Sections
3326	3326	22 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3327	3327	23 and all amounts of expenses allocable to interest and
3328	3328	24 disallowed as deductions by Section 265(a)(1) of the
3329	3329	25 Internal Revenue Code; and (ii) for taxable years
3330	3330	26 ending on or after August 13, 1999, Sections
3331	3331
3332	3332
3333	3333
3334	3334
3335	3335
3336	3336	SB0219 - 92 - LRB104 07439 HLH 17480 b
3337	3337
3338	3338
3339	3339	SB0219- 93 -LRB104 07439 HLH 17480 b SB0219 - 93 - LRB104 07439 HLH 17480 b
3340	3340	SB0219 - 93 - LRB104 07439 HLH 17480 b
3341	3341	1 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3342	3342	2 Internal Revenue Code, plus, (iii) for taxable years
3343	3343	3 ending on or after December 31, 2011, Section
3344	3344	4 45G(e)(3) of the Internal Revenue Code and, for
3345	3345	5 taxable years ending on or after December 31, 2008,
3346	3346	6 any amount included in gross income under Section 87
3347	3347	7 of the Internal Revenue Code; the provisions of this
3348	3348	8 subparagraph are exempt from the provisions of Section
3349	3349	9 250;
3350	3350	10 (K) An amount equal to those dividends included in
3351	3351	11 such total which were paid by a corporation which
3352	3352	12 conducts business operations in a River Edge
3353	3353	13 Redevelopment Zone or zones created under the River
3354	3354	14 Edge Redevelopment Zone Act and conducts substantially
3355	3355	15 all of its operations from a River Edge Redevelopment
3356	3356	16 Zone or zones. This subparagraph (K) is exempt from
3357	3357	17 the provisions of Section 250;
3358	3358	18 (L) An amount equal to any contribution made to a
3359	3359	19 job training project established pursuant to the Real
3360	3360	20 Property Tax Increment Allocation Redevelopment Act;
3361	3361	21 (M) An amount equal to those dividends included in
3362	3362	22 such total that were paid by a corporation that
3363	3363	23 conducts business operations in a federally designated
3364	3364	24 Foreign Trade Zone or Sub-Zone and that is designated
3365	3365	25 a High Impact Business located in Illinois; provided
3366	3366	26 that dividends eligible for the deduction provided in
3367	3367
3368	3368
3369	3369
3370	3370
3371	3371
3372	3372	SB0219 - 93 - LRB104 07439 HLH 17480 b
3373	3373
3374	3374
3375	3375	SB0219- 94 -LRB104 07439 HLH 17480 b SB0219 - 94 - LRB104 07439 HLH 17480 b
3376	3376	SB0219 - 94 - LRB104 07439 HLH 17480 b
3377	3377	1 subparagraph (K) of paragraph (2) of this subsection
3378	3378	2 shall not be eligible for the deduction provided under
3379	3379	3 this subparagraph (M);
3380	3380	4 (N) An amount equal to the amount of the deduction
3381	3381	5 used to compute the federal income tax credit for
3382	3382	6 restoration of substantial amounts held under claim of
3383	3383	7 right for the taxable year pursuant to Section 1341 of
3384	3384	8 the Internal Revenue Code;
3385	3385	9 (O) For taxable years 2001 and thereafter, for the
3386	3386	10 taxable year in which the bonus depreciation deduction
3387	3387	11 is taken on the taxpayer's federal income tax return
3388	3388	12 under subsection (k) of Section 168 of the Internal
3389	3389	13 Revenue Code and for each applicable taxable year
3390	3390	14 thereafter, an amount equal to "x", where:
3391	3391	15 (1) "y" equals the amount of the depreciation
3392	3392	16 deduction taken for the taxable year on the
3393	3393	17 taxpayer's federal income tax return on property
3394	3394	18 for which the bonus depreciation deduction was
3395	3395	19 taken in any year under subsection (k) of Section
3396	3396	20 168 of the Internal Revenue Code, but not
3397	3397	21 including the bonus depreciation deduction;
3398	3398	22 (2) for taxable years ending on or before
3399	3399	23 December 31, 2005, "x" equals "y" multiplied by 30
3400	3400	24 and then divided by 70 (or "y" multiplied by
3401	3401	25 0.429); and
3402	3402	26 (3) for taxable years ending after December
3403	3403
3404	3404
3405	3405
3406	3406
3407	3407
3408	3408	SB0219 - 94 - LRB104 07439 HLH 17480 b
3409	3409
3410	3410
3411	3411	SB0219- 95 -LRB104 07439 HLH 17480 b SB0219 - 95 - LRB104 07439 HLH 17480 b
3412	3412	SB0219 - 95 - LRB104 07439 HLH 17480 b
3413	3413	1 31, 2005:
3414	3414	2 (i) for property on which a bonus
3415	3415	3 depreciation deduction of 30% of the adjusted
3416	3416	4 basis was taken, "x" equals "y" multiplied by
3417	3417	5 30 and then divided by 70 (or "y" multiplied
3418	3418	6 by 0.429);
3419	3419	7 (ii) for property on which a bonus
3420	3420	8 depreciation deduction of 50% of the adjusted
3421	3421	9 basis was taken, "x" equals "y" multiplied by
3422	3422	10 1.0;
3423	3423	11 (iii) for property on which a bonus
3424	3424	12 depreciation deduction of 100% of the adjusted
3425	3425	13 basis was taken in a taxable year ending on or
3426	3426	14 after December 31, 2021, "x" equals the
3427	3427	15 depreciation deduction that would be allowed
3428	3428	16 on that property if the taxpayer had made the
3429	3429	17 election under Section 168(k)(7) of the
3430	3430	18 Internal Revenue Code to not claim bonus
3431	3431	19 depreciation on that property; and
3432	3432	20 (iv) for property on which a bonus
3433	3433	21 depreciation deduction of a percentage other
3434	3434	22 than 30%, 50% or 100% of the adjusted basis
3435	3435	23 was taken in a taxable year ending on or after
3436	3436	24 December 31, 2021, "x" equals "y" multiplied
3437	3437	25 by 100 times the percentage bonus depreciation
3438	3438	26 on the property (that is, 100(bonus%)) and
3439	3439
3440	3440
3441	3441
3442	3442
3443	3443
3444	3444	SB0219 - 95 - LRB104 07439 HLH 17480 b
3445	3445
3446	3446
3447	3447	SB0219- 96 -LRB104 07439 HLH 17480 b SB0219 - 96 - LRB104 07439 HLH 17480 b
3448	3448	SB0219 - 96 - LRB104 07439 HLH 17480 b
3449	3449	1 then divided by 100 times 1 minus the
3450	3450	2 percentage bonus depreciation on the property
3451	3451	3 (that is, 100(1-bonus%)).
3452	3452	4 The aggregate amount deducted under this
3453	3453	5 subparagraph in all taxable years for any one piece of
3454	3454	6 property may not exceed the amount of the bonus
3455	3455	7 depreciation deduction taken on that property on the
3456	3456	8 taxpayer's federal income tax return under subsection
3457	3457	9 (k) of Section 168 of the Internal Revenue Code. This
3458	3458	10 subparagraph (O) is exempt from the provisions of
3459	3459	11 Section 250;
3460	3460	12 (P) If the taxpayer sells, transfers, abandons, or
3461	3461	13 otherwise disposes of property for which the taxpayer
3462	3462	14 was required in any taxable year to make an addition
3463	3463	15 modification under subparagraph (D-5), then an amount
3464	3464	16 equal to that addition modification.
3465	3465	17 If the taxpayer continues to own property through
3466	3466	18 the last day of the last tax year for which a
3467	3467	19 subtraction is allowed with respect to that property
3468	3468	20 under subparagraph (O) and for which the taxpayer was
3469	3469	21 required in any taxable year to make an addition
3470	3470	22 modification under subparagraph (D-5), then an amount
3471	3471	23 equal to that addition modification.
3472	3472	24 The taxpayer is allowed to take the deduction
3473	3473	25 under this subparagraph only once with respect to any
3474	3474	26 one piece of property.
3475	3475
3476	3476
3477	3477
3478	3478
3479	3479
3480	3480	SB0219 - 96 - LRB104 07439 HLH 17480 b
3481	3481
3482	3482
3483	3483	SB0219- 97 -LRB104 07439 HLH 17480 b SB0219 - 97 - LRB104 07439 HLH 17480 b
3484	3484	SB0219 - 97 - LRB104 07439 HLH 17480 b
3485	3485	1 This subparagraph (P) is exempt from the
3486	3486	2 provisions of Section 250;
3487	3487	3 (Q) The amount of (i) any interest income (net of
3488	3488	4 the deductions allocable thereto) taken into account
3489	3489	5 for the taxable year with respect to a transaction
3490	3490	6 with a taxpayer that is required to make an addition
3491	3491	7 modification with respect to such transaction under
3492	3492	8 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3493	3493	9 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3494	3494	10 the amount of such addition modification and (ii) any
3495	3495	11 income from intangible property (net of the deductions
3496	3496	12 allocable thereto) taken into account for the taxable
3497	3497	13 year with respect to a transaction with a taxpayer
3498	3498	14 that is required to make an addition modification with
3499	3499	15 respect to such transaction under Section
3500	3500	16 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3501	3501	17 203(d)(2)(D-8), but not to exceed the amount of such
3502	3502	18 addition modification. This subparagraph (Q) is exempt
3503	3503	19 from Section 250;
3504	3504	20 (R) An amount equal to the interest income taken
3505	3505	21 into account for the taxable year (net of the
3506	3506	22 deductions allocable thereto) with respect to
3507	3507	23 transactions with (i) a foreign person who would be a
3508	3508	24 member of the taxpayer's unitary business group but
3509	3509	25 for the fact that the foreign person's business
3510	3510	26 activity outside the United States is 80% or more of
3511	3511
3512	3512
3513	3513
3514	3514
3515	3515
3516	3516	SB0219 - 97 - LRB104 07439 HLH 17480 b
3517	3517
3518	3518
3519	3519	SB0219- 98 -LRB104 07439 HLH 17480 b SB0219 - 98 - LRB104 07439 HLH 17480 b
3520	3520	SB0219 - 98 - LRB104 07439 HLH 17480 b
3521	3521	1 that person's total business activity and (ii) for
3522	3522	2 taxable years ending on or after December 31, 2008, to
3523	3523	3 a person who would be a member of the same unitary
3524	3524	4 business group but for the fact that the person is
3525	3525	5 prohibited under Section 1501(a)(27) from being
3526	3526	6 included in the unitary business group because he or
3527	3527	7 she is ordinarily required to apportion business
3528	3528	8 income under different subsections of Section 304, but
3529	3529	9 not to exceed the addition modification required to be
3530	3530	10 made for the same taxable year under Section
3531	3531	11 203(d)(2)(D-7) for interest paid, accrued, or
3532	3532	12 incurred, directly or indirectly, to the same person.
3533	3533	13 This subparagraph (R) is exempt from Section 250;
3534	3534	14 (S) An amount equal to the income from intangible
3535	3535	15 property taken into account for the taxable year (net
3536	3536	16 of the deductions allocable thereto) with respect to
3537	3537	17 transactions with (i) a foreign person who would be a
3538	3538	18 member of the taxpayer's unitary business group but
3539	3539	19 for the fact that the foreign person's business
3540	3540	20 activity outside the United States is 80% or more of
3541	3541	21 that person's total business activity and (ii) for
3542	3542	22 taxable years ending on or after December 31, 2008, to
3543	3543	23 a person who would be a member of the same unitary
3544	3544	24 business group but for the fact that the person is
3545	3545	25 prohibited under Section 1501(a)(27) from being
3546	3546	26 included in the unitary business group because he or
3547	3547
3548	3548
3549	3549
3550	3550
3551	3551
3552	3552	SB0219 - 98 - LRB104 07439 HLH 17480 b
3553	3553
3554	3554
3555	3555	SB0219- 99 -LRB104 07439 HLH 17480 b SB0219 - 99 - LRB104 07439 HLH 17480 b
3556	3556	SB0219 - 99 - LRB104 07439 HLH 17480 b
3557	3557	1 she is ordinarily required to apportion business
3558	3558	2 income under different subsections of Section 304, but
3559	3559	3 not to exceed the addition modification required to be
3560	3560	4 made for the same taxable year under Section
3561	3561	5 203(d)(2)(D-8) for intangible expenses and costs paid,
3562	3562	6 accrued, or incurred, directly or indirectly, to the
3563	3563	7 same person. This subparagraph (S) is exempt from
3564	3564	8 Section 250;
3565	3565	9 (T) For taxable years ending on or after December
3566	3566	10 31, 2011, in the case of a taxpayer who was required to
3567	3567	11 add back any insurance premiums under Section
3568	3568	12 203(d)(2)(D-9), such taxpayer may elect to subtract
3569	3569	13 that part of a reimbursement received from the
3570	3570	14 insurance company equal to the amount of the expense
3571	3571	15 or loss (including expenses incurred by the insurance
3572	3572	16 company) that would have been taken into account as a
3573	3573	17 deduction for federal income tax purposes if the
3574	3574	18 expense or loss had been uninsured. If a taxpayer
3575	3575	19 makes the election provided for by this subparagraph
3576	3576	20 (T), the insurer to which the premiums were paid must
3577	3577	21 add back to income the amount subtracted by the
3578	3578	22 taxpayer pursuant to this subparagraph (T). This
3579	3579	23 subparagraph (T) is exempt from the provisions of
3580	3580	24 Section 250; and
3581	3581	25 (U) For taxable years beginning on or after
3582	3582	26 January 1, 2023, for any cannabis establishment
3583	3583
3584	3584
3585	3585
3586	3586
3587	3587
3588	3588	SB0219 - 99 - LRB104 07439 HLH 17480 b
3589	3589
3590	3590
3591	3591	SB0219- 100 -LRB104 07439 HLH 17480 b SB0219 - 100 - LRB104 07439 HLH 17480 b
3592	3592	SB0219 - 100 - LRB104 07439 HLH 17480 b
3593	3593	1 operating in this State and licensed under the
3594	3594	2 Cannabis Regulation and Tax Act or any cannabis
3595	3595	3 cultivation center or medical cannabis dispensing
3596	3596	4 organization operating in this State and licensed
3597	3597	5 under the Compassionate Use of Medical Cannabis
3598	3598	6 Program Act, an amount equal to the deductions that
3599	3599	7 were disallowed under Section 280E of the Internal
3600	3600	8 Revenue Code for the taxable year and that would not be
3601	3601	9 added back under this subsection. The provisions of
3602	3602	10 this subparagraph (U) are exempt from the provisions
3603	3603	11 of Section 250.
3604	3604	12 (e) Gross income; adjusted gross income; taxable income.
3605	3605	13 (1) In general. Subject to the provisions of paragraph
3606	3606	14 (2) and subsection (b)(3), for purposes of this Section
3607	3607	15 and Section 803(e), a taxpayer's gross income, adjusted
3608	3608	16 gross income, or taxable income for the taxable year shall
3609	3609	17 mean the amount of gross income, adjusted gross income or
3610	3610	18 taxable income properly reportable for federal income tax
3611	3611	19 purposes for the taxable year under the provisions of the
3612	3612	20 Internal Revenue Code. Taxable income may be less than
3613	3613	21 zero. However, for taxable years ending on or after
3614	3614	22 December 31, 1986, net operating loss carryforwards from
3615	3615	23 taxable years ending prior to December 31, 1986, may not
3616	3616	24 exceed the sum of federal taxable income for the taxable
3617	3617	25 year before net operating loss deduction, plus the excess
3618	3618
3619	3619
3620	3620
3621	3621
3622	3622
3623	3623	SB0219 - 100 - LRB104 07439 HLH 17480 b
3624	3624
3625	3625
3626	3626	SB0219- 101 -LRB104 07439 HLH 17480 b SB0219 - 101 - LRB104 07439 HLH 17480 b
3627	3627	SB0219 - 101 - LRB104 07439 HLH 17480 b
3628	3628	1 of addition modifications over subtraction modifications
3629	3629	2 for the taxable year. For taxable years ending prior to
3630	3630	3 December 31, 1986, taxable income may never be an amount
3631	3631	4 in excess of the net operating loss for the taxable year as
3632	3632	5 defined in subsections (c) and (d) of Section 172 of the
3633	3633	6 Internal Revenue Code, provided that when taxable income
3634	3634	7 of a corporation (other than a Subchapter S corporation),
3635	3635	8 trust, or estate is less than zero and addition
3636	3636	9 modifications, other than those provided by subparagraph
3637	3637	10 (E) of paragraph (2) of subsection (b) for corporations or
3638	3638	11 subparagraph (E) of paragraph (2) of subsection (c) for
3639	3639	12 trusts and estates, exceed subtraction modifications, an
3640	3640	13 addition modification must be made under those
3641	3641	14 subparagraphs for any other taxable year to which the
3642	3642	15 taxable income less than zero (net operating loss) is
3643	3643	16 applied under Section 172 of the Internal Revenue Code or
3644	3644	17 under subparagraph (E) of paragraph (2) of this subsection
3645	3645	18 (e) applied in conjunction with Section 172 of the
3646	3646	19 Internal Revenue Code.
3647	3647	20 (2) Special rule. For purposes of paragraph (1) of
3648	3648	21 this subsection, the taxable income properly reportable
3649	3649	22 for federal income tax purposes shall mean:
3650	3650	23 (A) Certain life insurance companies. In the case
3651	3651	24 of a life insurance company subject to the tax imposed
3652	3652	25 by Section 801 of the Internal Revenue Code, life
3653	3653	26 insurance company taxable income, plus the amount of
3654	3654
3655	3655
3656	3656
3657	3657
3658	3658
3659	3659	SB0219 - 101 - LRB104 07439 HLH 17480 b
3660	3660
3661	3661
3662	3662	SB0219- 102 -LRB104 07439 HLH 17480 b SB0219 - 102 - LRB104 07439 HLH 17480 b
3663	3663	SB0219 - 102 - LRB104 07439 HLH 17480 b
3664	3664	1 distribution from pre-1984 policyholder surplus
3665	3665	2 accounts as calculated under Section 815a of the
3666	3666	3 Internal Revenue Code;
3667	3667	4 (B) Certain other insurance companies. In the case
3668	3668	5 of mutual insurance companies subject to the tax
3669	3669	6 imposed by Section 831 of the Internal Revenue Code,
3670	3670	7 insurance company taxable income;
3671	3671	8 (C) Regulated investment companies. In the case of
3672	3672	9 a regulated investment company subject to the tax
3673	3673	10 imposed by Section 852 of the Internal Revenue Code,
3674	3674	11 investment company taxable income;
3675	3675	12 (D) Real estate investment trusts. In the case of
3676	3676	13 a real estate investment trust subject to the tax
3677	3677	14 imposed by Section 857 of the Internal Revenue Code,
3678	3678	15 real estate investment trust taxable income;
3679	3679	16 (E) Consolidated corporations. In the case of a
3680	3680	17 corporation which is a member of an affiliated group
3681	3681	18 of corporations filing a consolidated income tax
3682	3682	19 return for the taxable year for federal income tax
3683	3683	20 purposes, taxable income determined as if such
3684	3684	21 corporation had filed a separate return for federal
3685	3685	22 income tax purposes for the taxable year and each
3686	3686	23 preceding taxable year for which it was a member of an
3687	3687	24 affiliated group. For purposes of this subparagraph,
3688	3688	25 the taxpayer's separate taxable income shall be
3689	3689	26 determined as if the election provided by Section
3690	3690
3691	3691
3692	3692
3693	3693
3694	3694
3695	3695	SB0219 - 102 - LRB104 07439 HLH 17480 b
3696	3696
3697	3697
3698	3698	SB0219- 103 -LRB104 07439 HLH 17480 b SB0219 - 103 - LRB104 07439 HLH 17480 b
3699	3699	SB0219 - 103 - LRB104 07439 HLH 17480 b
3700	3700	1 243(b)(2) of the Internal Revenue Code had been in
3701	3701	2 effect for all such years;
3702	3702	3 (F) Cooperatives. In the case of a cooperative
3703	3703	4 corporation or association, the taxable income of such
3704	3704	5 organization determined in accordance with the
3705	3705	6 provisions of Section 1381 through 1388 of the
3706	3706	7 Internal Revenue Code, but without regard to the
3707	3707	8 prohibition against offsetting losses from patronage
3708	3708	9 activities against income from nonpatronage
3709	3709	10 activities; except that a cooperative corporation or
3710	3710	11 association may make an election to follow its federal
3711	3711	12 income tax treatment of patronage losses and
3712	3712	13 nonpatronage losses. In the event such election is
3713	3713	14 made, such losses shall be computed and carried over
3714	3714	15 in a manner consistent with subsection (a) of Section
3715	3715	16 207 of this Act and apportioned by the apportionment
3716	3716	17 factor reported by the cooperative on its Illinois
3717	3717	18 income tax return filed for the taxable year in which
3718	3718	19 the losses are incurred. The election shall be
3719	3719	20 effective for all taxable years with original returns
3720	3720	21 due on or after the date of the election. In addition,
3721	3721	22 the cooperative may file an amended return or returns,
3722	3722	23 as allowed under this Act, to provide that the
3723	3723	24 election shall be effective for losses incurred or
3724	3724	25 carried forward for taxable years occurring prior to
3725	3725	26 the date of the election. Once made, the election may
3726	3726
3727	3727
3728	3728
3729	3729
3730	3730
3731	3731	SB0219 - 103 - LRB104 07439 HLH 17480 b
3732	3732
3733	3733
3734	3734	SB0219- 104 -LRB104 07439 HLH 17480 b SB0219 - 104 - LRB104 07439 HLH 17480 b
3735	3735	SB0219 - 104 - LRB104 07439 HLH 17480 b
3736	3736	1 only be revoked upon approval of the Director. The
3737	3737	2 Department shall adopt rules setting forth
3738	3738	3 requirements for documenting the elections and any
3739	3739	4 resulting Illinois net loss and the standards to be
3740	3740	5 used by the Director in evaluating requests to revoke
3741	3741	6 elections. Public Act 96-932 is declaratory of
3742	3742	7 existing law;
3743	3743	8 (G) Subchapter S corporations. In the case of: (i)
3744	3744	9 a Subchapter S corporation for which there is in
3745	3745	10 effect an election for the taxable year under Section
3746	3746	11 1362 of the Internal Revenue Code, the taxable income
3747	3747	12 of such corporation determined in accordance with
3748	3748	13 Section 1363(b) of the Internal Revenue Code, except
3749	3749	14 that taxable income shall take into account those
3750	3750	15 items which are required by Section 1363(b)(1) of the
3751	3751	16 Internal Revenue Code to be separately stated; and
3752	3752	17 (ii) a Subchapter S corporation for which there is in
3753	3753	18 effect a federal election to opt out of the provisions
3754	3754	19 of the Subchapter S Revision Act of 1982 and have
3755	3755	20 applied instead the prior federal Subchapter S rules
3756	3756	21 as in effect on July 1, 1982, the taxable income of
3757	3757	22 such corporation determined in accordance with the
3758	3758	23 federal Subchapter S rules as in effect on July 1,
3759	3759	24 1982; and
3760	3760	25 (H) Partnerships. In the case of a partnership,
3761	3761	26 taxable income determined in accordance with Section
3762	3762
3763	3763
3764	3764
3765	3765
3766	3766
3767	3767	SB0219 - 104 - LRB104 07439 HLH 17480 b
3768	3768
3769	3769
3770	3770	SB0219- 105 -LRB104 07439 HLH 17480 b SB0219 - 105 - LRB104 07439 HLH 17480 b
3771	3771	SB0219 - 105 - LRB104 07439 HLH 17480 b
3772	3772	1 703 of the Internal Revenue Code, except that taxable
3773	3773	2 income shall take into account those items which are
3774	3774	3 required by Section 703(a)(1) to be separately stated
3775	3775	4 but which would be taken into account by an individual
3776	3776	5 in calculating his taxable income.
3777	3777	6 (3) Recapture of business expenses on disposition of
3778	3778	7 asset or business. Notwithstanding any other law to the
3779	3779	8 contrary, if in prior years income from an asset or
3780	3780	9 business has been classified as business income and in a
3781	3781	10 later year is demonstrated to be non-business income, then
3782	3782	11 all expenses, without limitation, deducted in such later
3783	3783	12 year and in the 2 immediately preceding taxable years
3784	3784	13 related to that asset or business that generated the
3785	3785	14 non-business income shall be added back and recaptured as
3786	3786	15 business income in the year of the disposition of the
3787	3787	16 asset or business. Such amount shall be apportioned to
3788	3788	17 Illinois using the greater of the apportionment fraction
3789	3789	18 computed for the business under Section 304 of this Act
3790	3790	19 for the taxable year or the average of the apportionment
3791	3791	20 fractions computed for the business under Section 304 of
3792	3792	21 this Act for the taxable year and for the 2 immediately
3793	3793	22 preceding taxable years.
3794	3794	23 (f) Valuation limitation amount.
3795	3795	24 (1) In general. The valuation limitation amount
3796	3796	25 referred to in subsections (a)(2)(G), (c)(2)(I) and
3797	3797
3798	3798
3799	3799
3800	3800
3801	3801
3802	3802	SB0219 - 105 - LRB104 07439 HLH 17480 b
3803	3803
3804	3804
3805	3805	SB0219- 106 -LRB104 07439 HLH 17480 b SB0219 - 106 - LRB104 07439 HLH 17480 b
3806	3806	SB0219 - 106 - LRB104 07439 HLH 17480 b
3807	3807	1 (d)(2)(E) is an amount equal to:
3808	3808	2 (A) The sum of the pre-August 1, 1969 appreciation
3809	3809	3 amounts (to the extent consisting of gain reportable
3810	3810	4 under the provisions of Section 1245 or 1250 of the
3811	3811	5 Internal Revenue Code) for all property in respect of
3812	3812	6 which such gain was reported for the taxable year;
3813	3813	7 plus
3814	3814	8 (B) The lesser of (i) the sum of the pre-August 1,
3815	3815	9 1969 appreciation amounts (to the extent consisting of
3816	3816	10 capital gain) for all property in respect of which
3817	3817	11 such gain was reported for federal income tax purposes
3818	3818	12 for the taxable year, or (ii) the net capital gain for
3819	3819	13 the taxable year, reduced in either case by any amount
3820	3820	14 of such gain included in the amount determined under
3821	3821	15 subsection (a)(2)(F) or (c)(2)(H).
3822	3822	16 (2) Pre-August 1, 1969 appreciation amount.
3823	3823	17 (A) If the fair market value of property referred
3824	3824	18 to in paragraph (1) was readily ascertainable on
3825	3825	19 August 1, 1969, the pre-August 1, 1969 appreciation
3826	3826	20 amount for such property is the lesser of (i) the
3827	3827	21 excess of such fair market value over the taxpayer's
3828	3828	22 basis (for determining gain) for such property on that
3829	3829	23 date (determined under the Internal Revenue Code as in
3830	3830	24 effect on that date), or (ii) the total gain realized
3831	3831	25 and reportable for federal income tax purposes in
3832	3832	26 respect of the sale, exchange or other disposition of
3833	3833
3834	3834
3835	3835
3836	3836
3837	3837
3838	3838	SB0219 - 106 - LRB104 07439 HLH 17480 b
3839	3839
3840	3840
3841	3841	SB0219- 107 -LRB104 07439 HLH 17480 b SB0219 - 107 - LRB104 07439 HLH 17480 b
3842	3842	SB0219 - 107 - LRB104 07439 HLH 17480 b
3843	3843	1 such property.
3844	3844	2 (B) If the fair market value of property referred
3845	3845	3 to in paragraph (1) was not readily ascertainable on
3846	3846	4 August 1, 1969, the pre-August 1, 1969 appreciation
3847	3847	5 amount for such property is that amount which bears
3848	3848	6 the same ratio to the total gain reported in respect of
3849	3849	7 the property for federal income tax purposes for the
3850	3850	8 taxable year, as the number of full calendar months in
3851	3851	9 that part of the taxpayer's holding period for the
3852	3852	10 property ending July 31, 1969 bears to the number of
3853	3853	11 full calendar months in the taxpayer's entire holding
3854	3854	12 period for the property.
3855	3855	13 (C) The Department shall prescribe such
3856	3856	14 regulations as may be necessary to carry out the
3857	3857	15 purposes of this paragraph.
3858	3858	16 (g) Double deductions. Unless specifically provided
3859	3859	17 otherwise, nothing in this Section shall permit the same item
3860	3860	18 to be deducted more than once.
3861	3861	19 (h) Legislative intention. Except as expressly provided by
3862	3862	20 this Section there shall be no modifications or limitations on
3863	3863	21 the amounts of income, gain, loss or deduction taken into
3864	3864	22 account in determining gross income, adjusted gross income or
3865	3865	23 taxable income for federal income tax purposes for the taxable
3866	3866	24 year, or in the amount of such items entering into the
3867	3867
3868	3868
3869	3869
3870	3870
3871	3871
3872	3872	SB0219 - 107 - LRB104 07439 HLH 17480 b
3873	3873
3874	3874
3875	3875	SB0219- 108 -LRB104 07439 HLH 17480 b SB0219 - 108 - LRB104 07439 HLH 17480 b
3876	3876	SB0219 - 108 - LRB104 07439 HLH 17480 b
3877	3877	1 computation of base income and net income under this Act for
3878	3878	2 such taxable year, whether in respect of property values as of
3879	3879	3 August 1, 1969 or otherwise.
3880	3880	4 (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
3881	3881	5 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
3882	3882	6 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; 103-592,
3883	3883	7 Article 10, Section 10-900, eff. 6-7-24; 103-592, Article 170,
3884	3884	8 Section 170-90, eff. 6-7-24; 103-605, eff. 7-1-24; 103-647,
3885	3885	9 eff. 7-1-24; revised 8-20-24.)
3886	3886
3887	3887
3888	3888
3889	3889
3890	3890
3891	3891	SB0219 - 108 - LRB104 07439 HLH 17480 b