Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2279 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 SB2279 Introduced 2/7/2025, by Sen. Robert Peters SYNOPSIS AS INTRODUCED: See Index Creates the Responsibility in Firearm Legislation (RIFL) Act. Establishes a firearms manufacturer licensing program in the Department of Financial and Professional Regulation, with certain requirements, including that the sum of all fees for firearms manufacturer licenses shall be equal to the public health costs and financial burdens from firearm injuries and deaths. Provides that, beginning January 1, 2028, a manufacturer of firearms may not operate in this State without a license from the Department and that a manufacturer who violates this provision is subject to a civil penalty of up to $1,000,000 per month. Provides that, beginning January 1, 2028, a retailer may not sell a firearm to a consumer in this State from a manufacturer who does not have a license from the Department and that a retailer who violates this provision is subject to a civil penalty of up to $10,000 per violation, with certain requirements. Establishes the RIFL Fund as a special fund in the State treasury, with certain limitations. Provides that the proceeds from fees under the licensing program shall be deposited into the RIFL Fund. Establishes a financial assistance program in the Department with moneys from the RIFL Fund for financial assistance to victims of firearms and for other purposes. Provides that the Department shall contract with a program administrator to administer the financial assistance program, with certain requirements. Provides that the Department shall adopt rules for financial assistance to victims of firearms, with certain requirements, including regarding exemption from certain State taxes. Provides that the Department may contract with a program administrator to implement or administer any part of the Act, with certain requirements. Provides that the Illinois State Police shall report certain information to the Department. Provides that the Department may provide for other civil penalties of no more than $1,000 per violation. Provides that the Attorney General may enforce the Act. Makes other provisions. Amends the State Finance Act to make conforming changes. Amends the Illinois Income Tax Act to make conforming changes. LRB104 12211 BDA 22316 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2279 Introduced 2/7/2025, by Sen. Robert Peters SYNOPSIS AS INTRODUCED: See Index See Index Creates the Responsibility in Firearm Legislation (RIFL) Act. Establishes a firearms manufacturer licensing program in the Department of Financial and Professional Regulation, with certain requirements, including that the sum of all fees for firearms manufacturer licenses shall be equal to the public health costs and financial burdens from firearm injuries and deaths. Provides that, beginning January 1, 2028, a manufacturer of firearms may not operate in this State without a license from the Department and that a manufacturer who violates this provision is subject to a civil penalty of up to $1,000,000 per month. Provides that, beginning January 1, 2028, a retailer may not sell a firearm to a consumer in this State from a manufacturer who does not have a license from the Department and that a retailer who violates this provision is subject to a civil penalty of up to $10,000 per violation, with certain requirements. Establishes the RIFL Fund as a special fund in the State treasury, with certain limitations. Provides that the proceeds from fees under the licensing program shall be deposited into the RIFL Fund. Establishes a financial assistance program in the Department with moneys from the RIFL Fund for financial assistance to victims of firearms and for other purposes. Provides that the Department shall contract with a program administrator to administer the financial assistance program, with certain requirements. Provides that the Department shall adopt rules for financial assistance to victims of firearms, with certain requirements, including regarding exemption from certain State taxes. Provides that the Department may contract with a program administrator to implement or administer any part of the Act, with certain requirements. Provides that the Illinois State Police shall report certain information to the Department. Provides that the Department may provide for other civil penalties of no more than $1,000 per violation. Provides that the Attorney General may enforce the Act. Makes other provisions. Amends the State Finance Act to make conforming changes. Amends the Illinois Income Tax Act to make conforming changes. LRB104 12211 BDA 22316 b LRB104 12211 BDA 22316 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2279 Introduced 2/7/2025, by Sen. Robert Peters SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Creates the Responsibility in Firearm Legislation (RIFL) Act. Establishes a firearms manufacturer licensing program in the Department of Financial and Professional Regulation, with certain requirements, including that the sum of all fees for firearms manufacturer licenses shall be equal to the public health costs and financial burdens from firearm injuries and deaths. Provides that, beginning January 1, 2028, a manufacturer of firearms may not operate in this State without a license from the Department and that a manufacturer who violates this provision is subject to a civil penalty of up to $1,000,000 per month. Provides that, beginning January 1, 2028, a retailer may not sell a firearm to a consumer in this State from a manufacturer who does not have a license from the Department and that a retailer who violates this provision is subject to a civil penalty of up to $10,000 per violation, with certain requirements. Establishes the RIFL Fund as a special fund in the State treasury, with certain limitations. Provides that the proceeds from fees under the licensing program shall be deposited into the RIFL Fund. Establishes a financial assistance program in the Department with moneys from the RIFL Fund for financial assistance to victims of firearms and for other purposes. Provides that the Department shall contract with a program administrator to administer the financial assistance program, with certain requirements. Provides that the Department shall adopt rules for financial assistance to victims of firearms, with certain requirements, including regarding exemption from certain State taxes. Provides that the Department may contract with a program administrator to implement or administer any part of the Act, with certain requirements. Provides that the Illinois State Police shall report certain information to the Department. Provides that the Department may provide for other civil penalties of no more than $1,000 per violation. Provides that the Attorney General may enforce the Act. Makes other provisions. Amends the State Finance Act to make conforming changes. Amends the Illinois Income Tax Act to make conforming changes.
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8	8	A BILL FOR
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11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the
15	15	5 Responsibility in Firearm Legislation (RIFL) Act.
16	16	6 Section 5. Findings and purpose. The General Assembly
17	17	7 finds that the people of the State of Illinois have incurred
18	18	8 undue public health costs and financial burdens from injuries
19	19	9 and deaths as a result of the use of firearms in this State.
20	20	10 Therefore, to protect the health, welfare, and safety of the
21	21	11 people of the State of Illinois, it is necessary to require the
22	22	12 licensing of manufacturers of firearms in this State and to
23	23	13 distribute the proceeds of license fees to victims of firearms
24	24	14 in this State.
25	25	15 Section 10. Definitions. In this Act:
26	26	16 "Consumer price index-u" means the index published by the
27	27	17 Bureau of Labor Statistics of the United States Department of
28	28	18 Labor that measures the average change in prices of goods and
29	29	19 services purchased by all urban consumers, United States city
30	30	20 average, all items, 1982-84 = 100.
31	31	21 "Department" means the Department of Financial and
32	32	22 Professional Regulation.
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36	36	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2279 Introduced 2/7/2025, by Sen. Robert Peters SYNOPSIS AS INTRODUCED:
37	37	See Index See Index
38	38	See Index
39	39	Creates the Responsibility in Firearm Legislation (RIFL) Act. Establishes a firearms manufacturer licensing program in the Department of Financial and Professional Regulation, with certain requirements, including that the sum of all fees for firearms manufacturer licenses shall be equal to the public health costs and financial burdens from firearm injuries and deaths. Provides that, beginning January 1, 2028, a manufacturer of firearms may not operate in this State without a license from the Department and that a manufacturer who violates this provision is subject to a civil penalty of up to $1,000,000 per month. Provides that, beginning January 1, 2028, a retailer may not sell a firearm to a consumer in this State from a manufacturer who does not have a license from the Department and that a retailer who violates this provision is subject to a civil penalty of up to $10,000 per violation, with certain requirements. Establishes the RIFL Fund as a special fund in the State treasury, with certain limitations. Provides that the proceeds from fees under the licensing program shall be deposited into the RIFL Fund. Establishes a financial assistance program in the Department with moneys from the RIFL Fund for financial assistance to victims of firearms and for other purposes. Provides that the Department shall contract with a program administrator to administer the financial assistance program, with certain requirements. Provides that the Department shall adopt rules for financial assistance to victims of firearms, with certain requirements, including regarding exemption from certain State taxes. Provides that the Department may contract with a program administrator to implement or administer any part of the Act, with certain requirements. Provides that the Illinois State Police shall report certain information to the Department. Provides that the Department may provide for other civil penalties of no more than $1,000 per violation. Provides that the Attorney General may enforce the Act. Makes other provisions. Amends the State Finance Act to make conforming changes. Amends the Illinois Income Tax Act to make conforming changes.
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42	42	A BILL FOR
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67	67	1 "Direct costs" means costs incurred for any one or more of
68	68	2 the following: medical treatment and care; medical devices and
69	69	3 prescriptions drugs; mental health treatment provided by a
70	70	4 psychiatrist, psychologist, social worker, or behavioral
71	71	5 therapist; physical therapy, occupational therapy, and
72	72	6 rehabilitation services; funeral and burial; emergency
73	73	7 transportation; lost wages; emergency relocation; property
74	74	8 damage; legal services; or emergency child or dependent care.
75	75	9 "Distributor of firearms" or "distributor" means a person
76	76	10 who supplies firearms to retailers or other businesses that
77	77	11 sell firearms to consumers in this State.
78	78	12 "Firearm" has the meaning given in Section 1.1 of the
79	79	13 Firearm Owners Identification Card Act.
80	80	14 "Firearm injury or death" or "firearm injury" means an
81	81	15 injury to or the death of an individual that is caused by a
82	82	16 high-velocity projectile fired from a firearm. "Firearm
83	83	17 injury" includes firearm-related suicides and firearm-related
84	84	18 homicides.
85	85	19 "First-degree relative" means an individual's parent,
86	86	20 sibling, or child.
87	87	21 "Manufacturer of firearms" or "manufacturer" means a
88	88	22 person that manufactures and sells firearms to consumers,
89	89	23 distributors, or retailers in this State.
90	90	24 "Permanent disability" means a permanent physical
91	91	25 impairment to a person that is caused by a firearm injury and
92	92	26 either prevents the person from working or performing normal
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103	103	1 activities or results in paralysis or extended treatment in a
104	104	2 long-term acute care facility.
105	105	3 "Retailer of firearms" or "retailer" means a person that
106	106	4 sells firearms directly to consumers in this State.
107	107	5 "RIFL License" or "License" means a Responsibility in
108	108	6 Firearm Legislation (RIFL) License granted by the Department
109	109	7 under Section 15 of this Act or the rules adopted under this
110	110	8 Act.
111	111	9 "RIFL Fund" or "Fund" means the Responsibility in Firearm
112	112	10 Legislation (RIFL) Fund created under this Act.
113	113	11 "Second-degree relative" means an individual's aunt,
114	114	12 uncle, grandparent, grandchild, niece, half-sibling, or other
115	115	13 blood relative who is one generation removed.
116	116	14 "Total annual aggregate fee" means the sum of all license
117	117	15 fees imposed over one year on manufacturers under this Act.
118	118	16 "Victim of firearms" or "Victim" means (i) an individual
119	119	17 who is killed by a firearm injury or suffers a firearm injury
120	120	18 or (ii) the next of kin, legal guardian, dependent,
121	121	19 first-degree relative, second-degree relative, or employer of
122	122	20 an individual described in item (i).
123	123	21 Section 15. RIFL Licensing Program.
124	124	22 (a) The Responsibility in Firearm Legislation (RIFL)
125	125	23 Licensing Program is established in the Department for the
126	126	24 licensing of manufacturers of firearms.
127	127	25 (b) The Department shall notify all manufacturers that are
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138	138	1 subject to licensing under this Act.
139	139	2 (c) A manufacturer in this State shall be awarded a RIFL
140	140	3 License by the Department upon payment of the fee set by the
141	141	4 Department for the License.
142	142	5 (d) Manufacturers who have a license from the Department
143	143	6 shall be listed on an Internet website maintained by the
144	144	7 Department in order to ensure that manufacturers,
145	145	8 distributors, and retailers comply with the requirements of
146	146	9 this Act.
147	147	10 (e) The fees for a RIFL License shall be determined by the
148	148	11 Department annually based on the findings and purpose of this
149	149	12 Act and on the following:
150	150	13 (1) The total annual aggregate fee for all
151	151	14 manufacturers of firearms in this State shall be set by
152	152	15 the Department at an amount that the Department estimates
153	153	16 is equal to the public health costs and financial burdens
154	154	17 borne by the State and its residents as a result of firearm
155	155	18 injuries occurring in this State, as determined by the
156	156	19 Department based on the incidence of firearm injuries in
157	157	20 this State in the previous year, except that in the first
158	158	21 program year the total annual aggregate fee shall not
159	159	22 exceed $866,000,000.
160	160	23 (2) The total annual aggregate fee for all
161	161	24 manufacturers of firearms in this State shall annually
162	162	25 thereafter be increased by the annual unadjusted
163	163	26 percentage increase in the consumer price index-u for the
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174	174	1 12 months ending with the September preceding each
175	175	2 November 1, including all previous adjustments.
176	176	3 (3) The fee paid by a firearm manufacturer shall be
177	177	4 the portion of the total annual aggregate fee equal to the
178	178	5 market share of the firearm manufacturer, as determined by
179	179	6 rule of the Department.
180	180	7 (4) The fee paid by a firearm manufacturer under
181	181	8 paragraph (3) may be adjusted by the Department based on
182	182	9 the number of firearms recovered in a given year in
183	183	10 connection with incidents involving firearm injuries that
184	184	11 are linked to a specific manufacturer in the State,
185	185	12 regardless of modifications or accessories added to the
186	186	13 firearm after manufacturing, divided by the total number
187	187	14 of firearms recovered in connection with those incidents
188	188	15 in that same year.
189	189	16 (f) The Department shall provide information regarding the
190	190	17 specific amount for the fee for the license to each
191	191	18 manufacturer at least 90 days before the fee for the license is
192	192	19 due.
193	193	20 (g) The Department shall provide manufacturers with an
194	194	21 opportunity to dispute any fees levied for a license under
195	195	22 procedures established by rules adopted by the Department
196	196	23 under this Act.
197	197	24 (h) The proceeds from all fees under the Responsibility in
198	198	25 Firearm Legislation (RIFL) Licensing Program shall be
199	199	26 deposited into the RIFL Fund established in Section 20 of this
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210	210	1 Act.
211	211	2 (i) Beginning January 1, 2028, a manufacturer of firearms
212	212	3 may not operate in this State without a license issued by the
213	213	4 Department under this Act.
214	214	5 (j) Beginning January 1, 2028, a retailer may not sell a
215	215	6 firearm to a consumer in this State from a manufacturer who
216	216	7 does not have a license issued by the Department under this
217	217	8 Act.
218	218	9 Section 20. RIFL Fund. The Responsibility in Firearm
219	219	10 Legislation (RIFL) Fund is created as a special fund in the
220	220	11 State treasury. Proceeds from fees imposed for RIFL Licenses
221	221	12 under Section 15 of this Act or rules adopted under Section 15
222	222	13 of this Act shall be collected by the Department and deposited
223	223	14 into the Fund. Civil penalties collected under Section 40
224	224	15 shall be deposited into the Fund. Proceeds from interest or
225	225	16 dividends shall be reinvested into the Fund. Moneys in the
226	226	17 RIFL Fund, as directed by the Secretary of Financial and
227	227	18 Professional Regulation or the Secretary's designee, shall be
228	228	19 expended for financial assistance to victims of firearms in
229	229	20 this State under Section 25 of this Act or rules adopted under
230	230	21 Section 25 of this Act and for other purposes authorized under
231	231	22 this Act or rules adopted under this Act. Subsections (b) and
232	232	23 (c) of Section 5 of the State Finance Act do not apply to the
233	233	24 RIFL Fund.
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244	244	1 Section 25. RIFL Financial Assistance Program.
245	245	2 (a) The Responsibility in Firearm Legislation (RIFL)
246	246	3 Financial Assistance Program is established in the Department
247	247	4 for the purpose of providing financial assistance to victims
248	248	5 of firearms in this State.
249	249	6 (b) The Department shall, in consultation with the
250	250	7 Department of Insurance, contract with a program administrator
251	251	8 under Section 30 to administer the RIFL Financial Assistance
252	252	9 Program. The contract with the program administrator selected
253	253	10 by the Department shall include all requirements under this
254	254	11 Act and rules adopted by the Department under this Act
255	255	12 applicable to the duties of the program administrator.
256	256	13 (c) Moneys in the RIFL Fund shall be used for the financial
257	257	14 assistance under the Responsibility in Firearm Legislation
258	258	15 (RIFL) Financial Assistance Program established under this
259	259	16 Section.
260	260	17 (d) On or before July 1, 2027, the Department, in
261	261	18 consultation with the Department of Insurance, shall adopt
262	262	19 rules for the provision of financial assistance to victims of
263	263	20 firearms in this State. These rules shall be based on the
264	264	21 findings and purpose of this Act and shall provide, at least
265	265	22 and as much as practicable, for the following:
266	266	23 (1) Eligible claimants for financial assistance shall
267	267	24 include all victims as defined in this Act.
268	268	25 (2) Except as limited by paragraph (4), expenses
269	269	26 eligible for compensation through financial assistance
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280	280	1 from the RIFL Fund under this Act include, but are not
281	281	2 limited to, costs related to medical and mental health
282	282	3 care, rehabilitation, prescriptions, medical devices,
283	283	4 funeral, emergency transportation, lost wages, loss of
284	284	5 tuition, property damage, temporary relocation, property
285	285	6 disability accommodations, probate costs, replacement
286	286	7 services loss, loss of support, dependent replacement
287	287	8 service, short-term childcare, pain and suffering, hiring,
288	288	9 recruiting, paid time-off, training, and work
289	289	10 accommodation costs.
290	290	11 (3) The financial assistance from the RIFL Fund under
291	291	12 this Act shall compensate victims of firearms for all
292	292	13 direct costs incurred as a result of firearm injury for up
293	293	14 to 3 years post-event, except in the event of permanent
294	294	15 disability. Individuals who sustain permanent disability
295	295	16 from firearm injury are eligible for compensation for the
296	296	17 duration of the claimant's life. The Department shall
297	297	18 directly pay providers of medical care, mental health
298	298	19 care, pharmaceutical services, and rehabilitative services
299	299	20 who have provided medical care, mental health care,
300	300	21 pharmaceutical services, or rehabilitative services that
301	301	22 are connected to a firearm injury to a victim of firearms
302	302	23 as part of this compensation.
303	303	24 (4) Out-of-State residents who have suffered firearm
304	304	25 injury or death in this State are eligible for in-State
305	305	26 medical and mental health care costs, and rehabilitation
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316	316	1 only, through this RIFL Financial Assistance Program.
317	317	2 (5) The compensation received through the RIFL
318	318	3 Financial Assistance Program is exempt from State taxes
319	319	4 under subparagraph (NN) of paragraph (2) of subsection (a)
320	320	5 of Section 203 of the Illinois Income Tax Act.
321	321	6 (6) If any other sources of reimbursement are
322	322	7 available to a victim, the fund must be reimbursed by
323	323	8 those sources for the costs it incurs paying claims.
324	324	9 (7) Claimants are responsible to provide medical
325	325	10 records, proof of employment, and proof of expenses.
326	326	11 (8) Claim disputes shall be resolved by a claim
327	327	12 dispute review board established in the Department.
328	328	13 Claimants whose applications are denied may request review
329	329	14 within 30 days of denial by the claims dispute review
330	330	15 board. The dedicated review board shall issue a decision
331	331	16 within 60 days. Claimants may appeal decisions by the
332	332	17 claims dispute review board to the Court of Claims.
333	333	18 Section 30. Contracting.
334	334	19 (a) The Department may, in consultation with the
335	335	20 Department of Insurance, contract with a program administrator
336	336	21 to implement or administer any part of this Act, subject to the
337	337	22 Illinois Procurement Code.
338	338	23 (b) The program administrator must demonstrate:
339	339	24 (1) expertise in actuarial science, compensation or
340	340	25 mass tort programs, and public health policy;
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351	351	1 (2) independence from financial or operational ties to
352	352	2 the firearm industry or firearm advocacy organizations;
353	353	3 and
354	354	4 (3) transparency in operations with a publicly
355	355	5 accessible annual report detailing administrative costs,
356	356	6 personnel costs, claims distributed, and any other
357	357	7 information required by the Department.
358	358	8 (c) The program administrator shall submit quarterly and
359	359	9 annual reports to the Department detailing administrative
360	360	10 costs, personnel costs, claims distributed under Section 25,
361	361	11 and any other information required by the Department. The
362	362	12 annual reports under this Section shall be made publicly
363	363	13 available on a public website.
364	364	14 Section 35. RIFL firearm recovery reporting.
365	365	15 (a) The Illinois State Police shall report to the
366	366	16 Department the manufacturer, make, and model of all firearms
367	367	17 recovered in any incidents to which they respond that result
368	368	18 in a firearm injury.
369	369	19 (b) The Department shall make available on the
370	370	20 Department's public website the substance of the reports
371	371	21 received under subsection (a).
372	372	22 (c) The Department, in consultation with the Illinois
373	373	23 State Police, shall, by rule, establish procedures
374	374	24 implementing this Section.
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385	385	1 Section 40. Enforcement and penalties.
386	386	2 (a) The Attorney General shall have the authority to
387	387	3 investigate violations of this Act and bring civil actions to
388	388	4 enforce this Act. Any civil penalty collected under this Act
389	389	5 shall be deposited into the RIFL Fund.
390	390	6 (b) A manufacturer who violates subsection (i) of Section
391	391	7 15 is subject to a civil penalty of up to $1,000,000 per month,
392	392	8 for every month a continuing violation of that subsection
393	393	9 continues.
394	394	10 (c) A retailer who violates subsection (j) of Section 15
395	395	11 is subject to a civil penalty of up to $10,000 per violation.
396	396	12 It is an affirmative defense that a retailer reasonably relied
397	397	13 upon the list of manufacturers under Section 15 of this Act.
398	398	14 (d) The Department may adopt rules that provide for other
399	399	15 civil penalties for violations of this Act or rules adopted
400	400	16 under this Act of no more than $1,000 per violation.
401	401	17 (e) The Attorney General may bring an action for an
402	402	18 equitable or other remedy in a court of competent jurisdiction
403	403	19 to enforce this Act or to prevent a violation of this Act.
404	404	20 Section 45. Rulemaking. The Department shall adopt rules
405	405	21 implementing this Act.
406	406	22 Section 50. The State Finance Act is amended by changing
407	407	23 Section 5 and by adding Section 5.1030 as follows:
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417	417	SB2279 - 12 - LRB104 12211 BDA 22316 b
418	418	1 (30 ILCS 105/5) (from Ch. 127, par. 141)
419	419	2 Sec. 5. Special funds.
420	420	3 (a) There are special funds in the State Treasury
421	421	4 designated as specified in the Sections which succeed this
422	422	5 Section 5 and precede Section 5d.
423	423	6 (b) Except as provided in the Illinois Vehicle Hijacking
424	424	7 and Motor Vehicle Theft Prevention and Insurance Verification
425	425	8 Act and the Responsibility in Firearm Legislation (RIFL) Act,
426	426	9 when any special fund in the State Treasury is discontinued by
427	427	10 an Act of the General Assembly, any balance remaining therein
428	428	11 on the effective date of such Act shall be transferred to the
429	429	12 General Revenue Fund, or to such other fund as such Act shall
430	430	13 provide. Warrants outstanding against such discontinued fund
431	431	14 at the time of the transfer of any such balance therein shall
432	432	15 be paid out of the fund to which the transfer was made.
433	433	16 (c) Except as provided in the Responsibility in Firearm
434	434	17 Legislation (RIFL) Act, when When any special fund in the
435	435	18 State Treasury has been inactive for 18 months or longer, the
436	436	19 Comptroller may terminate the fund, and the balance remaining
437	437	20 in such fund shall be transferred by the Comptroller to the
438	438	21 General Revenue Fund. When a special fund has been terminated
439	439	22 by the Comptroller as provided in this Section, the General
440	440	23 Assembly shall repeal or amend all Sections of the statutes
441	441	24 creating or otherwise referring to that fund.
442	442	25 The Comptroller shall be allowed the discretion to
443	443	26 maintain or dissolve any federal trust fund which has been
444	444
445	445
446	446
447	447
448	448
449	449	SB2279 - 12 - LRB104 12211 BDA 22316 b
450	450
451	451
452	452	SB2279- 13 -LRB104 12211 BDA 22316 b SB2279 - 13 - LRB104 12211 BDA 22316 b
453	453	SB2279 - 13 - LRB104 12211 BDA 22316 b
454	454	1 inactive for 18 months or longer.
455	455	2 (d) (Blank).
456	456	3 (e) (Blank).
457	457	4 (Source: P.A. 102-904, eff. 1-1-23; 103-266, eff. 1-1-24;
458	458	5 103-616, eff. 7-1-24.)
459	459	6 (30 ILCS 105/5.1030 new)
460	460	7 Sec. 5.1030. The Responsibility in Firearm Legislation
461	461	8 (RIFL) Fund.
462	462	9 Section 55. The Illinois Income Tax Act is amended by
463	463	10 changing Section 203 as follows:
464	464	11 (35 ILCS 5/203)
465	465	12 Sec. 203. Base income defined.
466	466	13 (a) Individuals.
467	467	14 (1) In general. In the case of an individual, base
468	468	15 income means an amount equal to the taxpayer's adjusted
469	469	16 gross income for the taxable year as modified by paragraph
470	470	17 (2).
471	471	18 (2) Modifications. The adjusted gross income referred
472	472	19 to in paragraph (1) shall be modified by adding thereto
473	473	20 the sum of the following amounts:
474	474	21 (A) An amount equal to all amounts paid or accrued
475	475	22 to the taxpayer as interest or dividends during the
476	476	23 taxable year to the extent excluded from gross income
477	477
478	478
479	479
480	480
481	481
482	482	SB2279 - 13 - LRB104 12211 BDA 22316 b
483	483
484	484
485	485	SB2279- 14 -LRB104 12211 BDA 22316 b SB2279 - 14 - LRB104 12211 BDA 22316 b
486	486	SB2279 - 14 - LRB104 12211 BDA 22316 b
487	487	1 in the computation of adjusted gross income, except
488	488	2 stock dividends of qualified public utilities
489	489	3 described in Section 305(e) of the Internal Revenue
490	490	4 Code;
491	491	5 (B) An amount equal to the amount of tax imposed by
492	492	6 this Act to the extent deducted from gross income in
493	493	7 the computation of adjusted gross income for the
494	494	8 taxable year;
495	495	9 (C) An amount equal to the amount received during
496	496	10 the taxable year as a recovery or refund of real
497	497	11 property taxes paid with respect to the taxpayer's
498	498	12 principal residence under the Revenue Act of 1939 and
499	499	13 for which a deduction was previously taken under
500	500	14 subparagraph (L) of this paragraph (2) prior to July
501	501	15 1, 1991, the retrospective application date of Article
502	502	16 4 of Public Act 87-17. In the case of multi-unit or
503	503	17 multi-use structures and farm dwellings, the taxes on
504	504	18 the taxpayer's principal residence shall be that
505	505	19 portion of the total taxes for the entire property
506	506	20 which is attributable to such principal residence;
507	507	21 (D) An amount equal to the amount of the capital
508	508	22 gain deduction allowable under the Internal Revenue
509	509	23 Code, to the extent deducted from gross income in the
510	510	24 computation of adjusted gross income;
511	511	25 (D-5) An amount, to the extent not included in
512	512	26 adjusted gross income, equal to the amount of money
513	513
514	514
515	515
516	516
517	517
518	518	SB2279 - 14 - LRB104 12211 BDA 22316 b
519	519
520	520
521	521	SB2279- 15 -LRB104 12211 BDA 22316 b SB2279 - 15 - LRB104 12211 BDA 22316 b
522	522	SB2279 - 15 - LRB104 12211 BDA 22316 b
523	523	1 withdrawn by the taxpayer in the taxable year from a
524	524	2 medical care savings account and the interest earned
525	525	3 on the account in the taxable year of a withdrawal
526	526	4 pursuant to subsection (b) of Section 20 of the
527	527	5 Medical Care Savings Account Act or subsection (b) of
528	528	6 Section 20 of the Medical Care Savings Account Act of
529	529	7 2000;
530	530	8 (D-10) For taxable years ending after December 31,
531	531	9 1997, an amount equal to any eligible remediation
532	532	10 costs that the individual deducted in computing
533	533	11 adjusted gross income and for which the individual
534	534	12 claims a credit under subsection (l) of Section 201;
535	535	13 (D-15) For taxable years 2001 and thereafter, an
536	536	14 amount equal to the bonus depreciation deduction taken
537	537	15 on the taxpayer's federal income tax return for the
538	538	16 taxable year under subsection (k) of Section 168 of
539	539	17 the Internal Revenue Code;
540	540	18 (D-16) If the taxpayer sells, transfers, abandons,
541	541	19 or otherwise disposes of property for which the
542	542	20 taxpayer was required in any taxable year to make an
543	543	21 addition modification under subparagraph (D-15), then
544	544	22 an amount equal to the aggregate amount of the
545	545	23 deductions taken in all taxable years under
546	546	24 subparagraph (Z) with respect to that property.
547	547	25 If the taxpayer continues to own property through
548	548	26 the last day of the last tax year for which a
549	549
550	550
551	551
552	552
553	553
554	554	SB2279 - 15 - LRB104 12211 BDA 22316 b
555	555
556	556
557	557	SB2279- 16 -LRB104 12211 BDA 22316 b SB2279 - 16 - LRB104 12211 BDA 22316 b
558	558	SB2279 - 16 - LRB104 12211 BDA 22316 b
559	559	1 subtraction is allowed with respect to that property
560	560	2 under subparagraph (Z) and for which the taxpayer was
561	561	3 allowed in any taxable year to make a subtraction
562	562	4 modification under subparagraph (Z), then an amount
563	563	5 equal to that subtraction modification.
564	564	6 The taxpayer is required to make the addition
565	565	7 modification under this subparagraph only once with
566	566	8 respect to any one piece of property;
567	567	9 (D-17) An amount equal to the amount otherwise
568	568	10 allowed as a deduction in computing base income for
569	569	11 interest paid, accrued, or incurred, directly or
570	570	12 indirectly, (i) for taxable years ending on or after
571	571	13 December 31, 2004, to a foreign person who would be a
572	572	14 member of the same unitary business group but for the
573	573	15 fact that foreign person's business activity outside
574	574	16 the United States is 80% or more of the foreign
575	575	17 person's total business activity and (ii) for taxable
576	576	18 years ending on or after December 31, 2008, to a person
577	577	19 who would be a member of the same unitary business
578	578	20 group but for the fact that the person is prohibited
579	579	21 under Section 1501(a)(27) from being included in the
580	580	22 unitary business group because he or she is ordinarily
581	581	23 required to apportion business income under different
582	582	24 subsections of Section 304. The addition modification
583	583	25 required by this subparagraph shall be reduced to the
584	584	26 extent that dividends were included in base income of
585	585
586	586
587	587
588	588
589	589
590	590	SB2279 - 16 - LRB104 12211 BDA 22316 b
591	591
592	592
593	593	SB2279- 17 -LRB104 12211 BDA 22316 b SB2279 - 17 - LRB104 12211 BDA 22316 b
594	594	SB2279 - 17 - LRB104 12211 BDA 22316 b
595	595	1 the unitary group for the same taxable year and
596	596	2 received by the taxpayer or by a member of the
597	597	3 taxpayer's unitary business group (including amounts
598	598	4 included in gross income under Sections 951 through
599	599	5 964 of the Internal Revenue Code and amounts included
600	600	6 in gross income under Section 78 of the Internal
601	601	7 Revenue Code) with respect to the stock of the same
602	602	8 person to whom the interest was paid, accrued, or
603	603	9 incurred.
604	604	10 This paragraph shall not apply to the following:
605	605	11 (i) an item of interest paid, accrued, or
606	606	12 incurred, directly or indirectly, to a person who
607	607	13 is subject in a foreign country or state, other
608	608	14 than a state which requires mandatory unitary
609	609	15 reporting, to a tax on or measured by net income
610	610	16 with respect to such interest; or
611	611	17 (ii) an item of interest paid, accrued, or
612	612	18 incurred, directly or indirectly, to a person if
613	613	19 the taxpayer can establish, based on a
614	614	20 preponderance of the evidence, both of the
615	615	21 following:
616	616	22 (a) the person, during the same taxable
617	617	23 year, paid, accrued, or incurred, the interest
618	618	24 to a person that is not a related member, and
619	619	25 (b) the transaction giving rise to the
620	620	26 interest expense between the taxpayer and the
621	621
622	622
623	623
624	624
625	625
626	626	SB2279 - 17 - LRB104 12211 BDA 22316 b
627	627
628	628
629	629	SB2279- 18 -LRB104 12211 BDA 22316 b SB2279 - 18 - LRB104 12211 BDA 22316 b
630	630	SB2279 - 18 - LRB104 12211 BDA 22316 b
631	631	1 person did not have as a principal purpose the
632	632	2 avoidance of Illinois income tax, and is paid
633	633	3 pursuant to a contract or agreement that
634	634	4 reflects an arm's-length interest rate and
635	635	5 terms; or
636	636	6 (iii) the taxpayer can establish, based on
637	637	7 clear and convincing evidence, that the interest
638	638	8 paid, accrued, or incurred relates to a contract
639	639	9 or agreement entered into at arm's-length rates
640	640	10 and terms and the principal purpose for the
641	641	11 payment is not federal or Illinois tax avoidance;
642	642	12 or
643	643	13 (iv) an item of interest paid, accrued, or
644	644	14 incurred, directly or indirectly, to a person if
645	645	15 the taxpayer establishes by clear and convincing
646	646	16 evidence that the adjustments are unreasonable; or
647	647	17 if the taxpayer and the Director agree in writing
648	648	18 to the application or use of an alternative method
649	649	19 of apportionment under Section 304(f).
650	650	20 Nothing in this subsection shall preclude the
651	651	21 Director from making any other adjustment
652	652	22 otherwise allowed under Section 404 of this Act
653	653	23 for any tax year beginning after the effective
654	654	24 date of this amendment provided such adjustment is
655	655	25 made pursuant to regulation adopted by the
656	656	26 Department and such regulations provide methods
657	657
658	658
659	659
660	660
661	661
662	662	SB2279 - 18 - LRB104 12211 BDA 22316 b
663	663
664	664
665	665	SB2279- 19 -LRB104 12211 BDA 22316 b SB2279 - 19 - LRB104 12211 BDA 22316 b
666	666	SB2279 - 19 - LRB104 12211 BDA 22316 b
667	667	1 and standards by which the Department will utilize
668	668	2 its authority under Section 404 of this Act;
669	669	3 (D-18) An amount equal to the amount of intangible
670	670	4 expenses and costs otherwise allowed as a deduction in
671	671	5 computing base income, and that were paid, accrued, or
672	672	6 incurred, directly or indirectly, (i) for taxable
673	673	7 years ending on or after December 31, 2004, to a
674	674	8 foreign person who would be a member of the same
675	675	9 unitary business group but for the fact that the
676	676	10 foreign person's business activity outside the United
677	677	11 States is 80% or more of that person's total business
678	678	12 activity and (ii) for taxable years ending on or after
679	679	13 December 31, 2008, to a person who would be a member of
680	680	14 the same unitary business group but for the fact that
681	681	15 the person is prohibited under Section 1501(a)(27)
682	682	16 from being included in the unitary business group
683	683	17 because he or she is ordinarily required to apportion
684	684	18 business income under different subsections of Section
685	685	19 304. The addition modification required by this
686	686	20 subparagraph shall be reduced to the extent that
687	687	21 dividends were included in base income of the unitary
688	688	22 group for the same taxable year and received by the
689	689	23 taxpayer or by a member of the taxpayer's unitary
690	690	24 business group (including amounts included in gross
691	691	25 income under Sections 951 through 964 of the Internal
692	692	26 Revenue Code and amounts included in gross income
693	693
694	694
695	695
696	696
697	697
698	698	SB2279 - 19 - LRB104 12211 BDA 22316 b
699	699
700	700
701	701	SB2279- 20 -LRB104 12211 BDA 22316 b SB2279 - 20 - LRB104 12211 BDA 22316 b
702	702	SB2279 - 20 - LRB104 12211 BDA 22316 b
703	703	1 under Section 78 of the Internal Revenue Code) with
704	704	2 respect to the stock of the same person to whom the
705	705	3 intangible expenses and costs were directly or
706	706	4 indirectly paid, incurred, or accrued. The preceding
707	707	5 sentence does not apply to the extent that the same
708	708	6 dividends caused a reduction to the addition
709	709	7 modification required under Section 203(a)(2)(D-17) of
710	710	8 this Act. As used in this subparagraph, the term
711	711	9 "intangible expenses and costs" includes (1) expenses,
712	712	10 losses, and costs for, or related to, the direct or
713	713	11 indirect acquisition, use, maintenance or management,
714	714	12 ownership, sale, exchange, or any other disposition of
715	715	13 intangible property; (2) losses incurred, directly or
716	716	14 indirectly, from factoring transactions or discounting
717	717	15 transactions; (3) royalty, patent, technical, and
718	718	16 copyright fees; (4) licensing fees; and (5) other
719	719	17 similar expenses and costs. For purposes of this
720	720	18 subparagraph, "intangible property" includes patents,
721	721	19 patent applications, trade names, trademarks, service
722	722	20 marks, copyrights, mask works, trade secrets, and
723	723	21 similar types of intangible assets.
724	724	22 This paragraph shall not apply to the following:
725	725	23 (i) any item of intangible expenses or costs
726	726	24 paid, accrued, or incurred, directly or
727	727	25 indirectly, from a transaction with a person who
728	728	26 is subject in a foreign country or state, other
729	729
730	730
731	731
732	732
733	733
734	734	SB2279 - 20 - LRB104 12211 BDA 22316 b
735	735
736	736
737	737	SB2279- 21 -LRB104 12211 BDA 22316 b SB2279 - 21 - LRB104 12211 BDA 22316 b
738	738	SB2279 - 21 - LRB104 12211 BDA 22316 b
739	739	1 than a state which requires mandatory unitary
740	740	2 reporting, to a tax on or measured by net income
741	741	3 with respect to such item; or
742	742	4 (ii) any item of intangible expense or cost
743	743	5 paid, accrued, or incurred, directly or
744	744	6 indirectly, if the taxpayer can establish, based
745	745	7 on a preponderance of the evidence, both of the
746	746	8 following:
747	747	9 (a) the person during the same taxable
748	748	10 year paid, accrued, or incurred, the
749	749	11 intangible expense or cost to a person that is
750	750	12 not a related member, and
751	751	13 (b) the transaction giving rise to the
752	752	14 intangible expense or cost between the
753	753	15 taxpayer and the person did not have as a
754	754	16 principal purpose the avoidance of Illinois
755	755	17 income tax, and is paid pursuant to a contract
756	756	18 or agreement that reflects arm's-length terms;
757	757	19 or
758	758	20 (iii) any item of intangible expense or cost
759	759	21 paid, accrued, or incurred, directly or
760	760	22 indirectly, from a transaction with a person if
761	761	23 the taxpayer establishes by clear and convincing
762	762	24 evidence, that the adjustments are unreasonable;
763	763	25 or if the taxpayer and the Director agree in
764	764	26 writing to the application or use of an
765	765
766	766
767	767
768	768
769	769
770	770	SB2279 - 21 - LRB104 12211 BDA 22316 b
771	771
772	772
773	773	SB2279- 22 -LRB104 12211 BDA 22316 b SB2279 - 22 - LRB104 12211 BDA 22316 b
774	774	SB2279 - 22 - LRB104 12211 BDA 22316 b
775	775	1 alternative method of apportionment under Section
776	776	2 304(f);
777	777	3 Nothing in this subsection shall preclude the
778	778	4 Director from making any other adjustment
779	779	5 otherwise allowed under Section 404 of this Act
780	780	6 for any tax year beginning after the effective
781	781	7 date of this amendment provided such adjustment is
782	782	8 made pursuant to regulation adopted by the
783	783	9 Department and such regulations provide methods
784	784	10 and standards by which the Department will utilize
785	785	11 its authority under Section 404 of this Act;
786	786	12 (D-19) For taxable years ending on or after
787	787	13 December 31, 2008, an amount equal to the amount of
788	788	14 insurance premium expenses and costs otherwise allowed
789	789	15 as a deduction in computing base income, and that were
790	790	16 paid, accrued, or incurred, directly or indirectly, to
791	791	17 a person who would be a member of the same unitary
792	792	18 business group but for the fact that the person is
793	793	19 prohibited under Section 1501(a)(27) from being
794	794	20 included in the unitary business group because he or
795	795	21 she is ordinarily required to apportion business
796	796	22 income under different subsections of Section 304. The
797	797	23 addition modification required by this subparagraph
798	798	24 shall be reduced to the extent that dividends were
799	799	25 included in base income of the unitary group for the
800	800	26 same taxable year and received by the taxpayer or by a
801	801
802	802
803	803
804	804
805	805
806	806	SB2279 - 22 - LRB104 12211 BDA 22316 b
807	807
808	808
809	809	SB2279- 23 -LRB104 12211 BDA 22316 b SB2279 - 23 - LRB104 12211 BDA 22316 b
810	810	SB2279 - 23 - LRB104 12211 BDA 22316 b
811	811	1 member of the taxpayer's unitary business group
812	812	2 (including amounts included in gross income under
813	813	3 Sections 951 through 964 of the Internal Revenue Code
814	814	4 and amounts included in gross income under Section 78
815	815	5 of the Internal Revenue Code) with respect to the
816	816	6 stock of the same person to whom the premiums and costs
817	817	7 were directly or indirectly paid, incurred, or
818	818	8 accrued. The preceding sentence does not apply to the
819	819	9 extent that the same dividends caused a reduction to
820	820	10 the addition modification required under Section
821	821	11 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
822	822	12 Act;
823	823	13 (D-20) For taxable years beginning on or after
824	824	14 January 1, 2002 and ending on or before December 31,
825	825	15 2006, in the case of a distribution from a qualified
826	826	16 tuition program under Section 529 of the Internal
827	827	17 Revenue Code, other than (i) a distribution from a
828	828	18 College Savings Pool created under Section 16.5 of the
829	829	19 State Treasurer Act or (ii) a distribution from the
830	830	20 Illinois Prepaid Tuition Trust Fund, an amount equal
831	831	21 to the amount excluded from gross income under Section
832	832	22 529(c)(3)(B). For taxable years beginning on or after
833	833	23 January 1, 2007, in the case of a distribution from a
834	834	24 qualified tuition program under Section 529 of the
835	835	25 Internal Revenue Code, other than (i) a distribution
836	836	26 from a College Savings Pool created under Section 16.5
837	837
838	838
839	839
840	840
841	841
842	842	SB2279 - 23 - LRB104 12211 BDA 22316 b
843	843
844	844
845	845	SB2279- 24 -LRB104 12211 BDA 22316 b SB2279 - 24 - LRB104 12211 BDA 22316 b
846	846	SB2279 - 24 - LRB104 12211 BDA 22316 b
847	847	1 of the State Treasurer Act, (ii) a distribution from
848	848	2 the Illinois Prepaid Tuition Trust Fund, or (iii) a
849	849	3 distribution from a qualified tuition program under
850	850	4 Section 529 of the Internal Revenue Code that (I)
851	851	5 adopts and determines that its offering materials
852	852	6 comply with the College Savings Plans Network's
853	853	7 disclosure principles and (II) has made reasonable
854	854	8 efforts to inform in-state residents of the existence
855	855	9 of in-state qualified tuition programs by informing
856	856	10 Illinois residents directly and, where applicable, to
857	857	11 inform financial intermediaries distributing the
858	858	12 program to inform in-state residents of the existence
859	859	13 of in-state qualified tuition programs at least
860	860	14 annually, an amount equal to the amount excluded from
861	861	15 gross income under Section 529(c)(3)(B).
862	862	16 For the purposes of this subparagraph (D-20), a
863	863	17 qualified tuition program has made reasonable efforts
864	864	18 if it makes disclosures (which may use the term
865	865	19 "in-state program" or "in-state plan" and need not
866	866	20 specifically refer to Illinois or its qualified
867	867	21 programs by name) (i) directly to prospective
868	868	22 participants in its offering materials or makes a
869	869	23 public disclosure, such as a website posting; and (ii)
870	870	24 where applicable, to intermediaries selling the
871	871	25 out-of-state program in the same manner that the
872	872	26 out-of-state program distributes its offering
873	873
874	874
875	875
876	876
877	877
878	878	SB2279 - 24 - LRB104 12211 BDA 22316 b
879	879
880	880
881	881	SB2279- 25 -LRB104 12211 BDA 22316 b SB2279 - 25 - LRB104 12211 BDA 22316 b
882	882	SB2279 - 25 - LRB104 12211 BDA 22316 b
883	883	1 materials;
884	884	2 (D-20.5) For taxable years beginning on or after
885	885	3 January 1, 2018, in the case of a distribution from a
886	886	4 qualified ABLE program under Section 529A of the
887	887	5 Internal Revenue Code, other than a distribution from
888	888	6 a qualified ABLE program created under Section 16.6 of
889	889	7 the State Treasurer Act, an amount equal to the amount
890	890	8 excluded from gross income under Section 529A(c)(1)(B)
891	891	9 of the Internal Revenue Code;
892	892	10 (D-21) For taxable years beginning on or after
893	893	11 January 1, 2007, in the case of transfer of moneys from
894	894	12 a qualified tuition program under Section 529 of the
895	895	13 Internal Revenue Code that is administered by the
896	896	14 State to an out-of-state program, an amount equal to
897	897	15 the amount of moneys previously deducted from base
898	898	16 income under subsection (a)(2)(Y) of this Section;
899	899	17 (D-21.5) For taxable years beginning on or after
900	900	18 January 1, 2018, in the case of the transfer of moneys
901	901	19 from a qualified tuition program under Section 529 or
902	902	20 a qualified ABLE program under Section 529A of the
903	903	21 Internal Revenue Code that is administered by this
904	904	22 State to an ABLE account established under an
905	905	23 out-of-state ABLE account program, an amount equal to
906	906	24 the contribution component of the transferred amount
907	907	25 that was previously deducted from base income under
908	908	26 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
909	909
910	910
911	911
912	912
913	913
914	914	SB2279 - 25 - LRB104 12211 BDA 22316 b
915	915
916	916
917	917	SB2279- 26 -LRB104 12211 BDA 22316 b SB2279 - 26 - LRB104 12211 BDA 22316 b
918	918	SB2279 - 26 - LRB104 12211 BDA 22316 b
919	919	1 Section;
920	920	2 (D-22) For taxable years beginning on or after
921	921	3 January 1, 2009, and prior to January 1, 2018, in the
922	922	4 case of a nonqualified withdrawal or refund of moneys
923	923	5 from a qualified tuition program under Section 529 of
924	924	6 the Internal Revenue Code administered by the State
925	925	7 that is not used for qualified expenses at an eligible
926	926	8 education institution, an amount equal to the
927	927	9 contribution component of the nonqualified withdrawal
928	928	10 or refund that was previously deducted from base
929	929	11 income under subsection (a)(2)(y) of this Section,
930	930	12 provided that the withdrawal or refund did not result
931	931	13 from the beneficiary's death or disability. For
932	932	14 taxable years beginning on or after January 1, 2018:
933	933	15 (1) in the case of a nonqualified withdrawal or
934	934	16 refund, as defined under Section 16.5 of the State
935	935	17 Treasurer Act, of moneys from a qualified tuition
936	936	18 program under Section 529 of the Internal Revenue Code
937	937	19 administered by the State, an amount equal to the
938	938	20 contribution component of the nonqualified withdrawal
939	939	21 or refund that was previously deducted from base
940	940	22 income under subsection (a)(2)(Y) of this Section, and
941	941	23 (2) in the case of a nonqualified withdrawal or refund
942	942	24 from a qualified ABLE program under Section 529A of
943	943	25 the Internal Revenue Code administered by the State
944	944	26 that is not used for qualified disability expenses, an
945	945
946	946
947	947
948	948
949	949
950	950	SB2279 - 26 - LRB104 12211 BDA 22316 b
951	951
952	952
953	953	SB2279- 27 -LRB104 12211 BDA 22316 b SB2279 - 27 - LRB104 12211 BDA 22316 b
954	954	SB2279 - 27 - LRB104 12211 BDA 22316 b
955	955	1 amount equal to the contribution component of the
956	956	2 nonqualified withdrawal or refund that was previously
957	957	3 deducted from base income under subsection (a)(2)(HH)
958	958	4 of this Section;
959	959	5 (D-23) An amount equal to the credit allowable to
960	960	6 the taxpayer under Section 218(a) of this Act,
961	961	7 determined without regard to Section 218(c) of this
962	962	8 Act;
963	963	9 (D-24) For taxable years ending on or after
964	964	10 December 31, 2017, an amount equal to the deduction
965	965	11 allowed under Section 199 of the Internal Revenue Code
966	966	12 for the taxable year;
967	967	13 (D-25) In the case of a resident, an amount equal
968	968	14 to the amount of tax for which a credit is allowed
969	969	15 pursuant to Section 201(p)(7) of this Act;
970	970	16 and by deducting from the total so obtained the sum of the
971	971	17 following amounts:
972	972	18 (E) For taxable years ending before December 31,
973	973	19 2001, any amount included in such total in respect of
974	974	20 any compensation (including but not limited to any
975	975	21 compensation paid or accrued to a serviceman while a
976	976	22 prisoner of war or missing in action) paid to a
977	977	23 resident by reason of being on active duty in the Armed
978	978	24 Forces of the United States and in respect of any
979	979	25 compensation paid or accrued to a resident who as a
980	980	26 governmental employee was a prisoner of war or missing
981	981
982	982
983	983
984	984
985	985
986	986	SB2279 - 27 - LRB104 12211 BDA 22316 b
987	987
988	988
989	989	SB2279- 28 -LRB104 12211 BDA 22316 b SB2279 - 28 - LRB104 12211 BDA 22316 b
990	990	SB2279 - 28 - LRB104 12211 BDA 22316 b
991	991	1 in action, and in respect of any compensation paid to a
992	992	2 resident in 1971 or thereafter for annual training
993	993	3 performed pursuant to Sections 502 and 503, Title 32,
994	994	4 United States Code as a member of the Illinois
995	995	5 National Guard or, beginning with taxable years ending
996	996	6 on or after December 31, 2007, the National Guard of
997	997	7 any other state. For taxable years ending on or after
998	998	8 December 31, 2001, any amount included in such total
999	999	9 in respect of any compensation (including but not
1000	1000	10 limited to any compensation paid or accrued to a
1001	1001	11 serviceman while a prisoner of war or missing in
1002	1002	12 action) paid to a resident by reason of being a member
1003	1003	13 of any component of the Armed Forces of the United
1004	1004	14 States and in respect of any compensation paid or
1005	1005	15 accrued to a resident who as a governmental employee
1006	1006	16 was a prisoner of war or missing in action, and in
1007	1007	17 respect of any compensation paid to a resident in 2001
1008	1008	18 or thereafter by reason of being a member of the
1009	1009	19 Illinois National Guard or, beginning with taxable
1010	1010	20 years ending on or after December 31, 2007, the
1011	1011	21 National Guard of any other state. The provisions of
1012	1012	22 this subparagraph (E) are exempt from the provisions
1013	1013	23 of Section 250;
1014	1014	24 (F) An amount equal to all amounts included in
1015	1015	25 such total pursuant to the provisions of Sections
1016	1016	26 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
1017	1017
1018	1018
1019	1019
1020	1020
1021	1021
1022	1022	SB2279 - 28 - LRB104 12211 BDA 22316 b
1023	1023
1024	1024
1025	1025	SB2279- 29 -LRB104 12211 BDA 22316 b SB2279 - 29 - LRB104 12211 BDA 22316 b
1026	1026	SB2279 - 29 - LRB104 12211 BDA 22316 b
1027	1027	1 408 of the Internal Revenue Code, or included in such
1028	1028	2 total as distributions under the provisions of any
1029	1029	3 retirement or disability plan for employees of any
1030	1030	4 governmental agency or unit, or retirement payments to
1031	1031	5 retired partners, which payments are excluded in
1032	1032	6 computing net earnings from self employment by Section
1033	1033	7 1402 of the Internal Revenue Code and regulations
1034	1034	8 adopted pursuant thereto;
1035	1035	9 (G) The valuation limitation amount;
1036	1036	10 (H) An amount equal to the amount of any tax
1037	1037	11 imposed by this Act which was refunded to the taxpayer
1038	1038	12 and included in such total for the taxable year;
1039	1039	13 (I) An amount equal to all amounts included in
1040	1040	14 such total pursuant to the provisions of Section 111
1041	1041	15 of the Internal Revenue Code as a recovery of items
1042	1042	16 previously deducted from adjusted gross income in the
1043	1043	17 computation of taxable income;
1044	1044	18 (J) An amount equal to those dividends included in
1045	1045	19 such total which were paid by a corporation which
1046	1046	20 conducts business operations in a River Edge
1047	1047	21 Redevelopment Zone or zones created under the River
1048	1048	22 Edge Redevelopment Zone Act, and conducts
1049	1049	23 substantially all of its operations in a River Edge
1050	1050	24 Redevelopment Zone or zones. This subparagraph (J) is
1051	1051	25 exempt from the provisions of Section 250;
1052	1052	26 (K) An amount equal to those dividends included in
1053	1053
1054	1054
1055	1055
1056	1056
1057	1057
1058	1058	SB2279 - 29 - LRB104 12211 BDA 22316 b
1059	1059
1060	1060
1061	1061	SB2279- 30 -LRB104 12211 BDA 22316 b SB2279 - 30 - LRB104 12211 BDA 22316 b
1062	1062	SB2279 - 30 - LRB104 12211 BDA 22316 b
1063	1063	1 such total that were paid by a corporation that
1064	1064	2 conducts business operations in a federally designated
1065	1065	3 Foreign Trade Zone or Sub-Zone and that is designated
1066	1066	4 a High Impact Business located in Illinois; provided
1067	1067	5 that dividends eligible for the deduction provided in
1068	1068	6 subparagraph (J) of paragraph (2) of this subsection
1069	1069	7 shall not be eligible for the deduction provided under
1070	1070	8 this subparagraph (K);
1071	1071	9 (L) For taxable years ending after December 31,
1072	1072	10 1983, an amount equal to all social security benefits
1073	1073	11 and railroad retirement benefits included in such
1074	1074	12 total pursuant to Sections 72(r) and 86 of the
1075	1075	13 Internal Revenue Code;
1076	1076	14 (M) With the exception of any amounts subtracted
1077	1077	15 under subparagraph (N), an amount equal to the sum of
1078	1078	16 all amounts disallowed as deductions by (i) Sections
1079	1079	17 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
1080	1080	18 and all amounts of expenses allocable to interest and
1081	1081	19 disallowed as deductions by Section 265(a)(1) of the
1082	1082	20 Internal Revenue Code; and (ii) for taxable years
1083	1083	21 ending on or after August 13, 1999, Sections
1084	1084	22 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
1085	1085	23 Internal Revenue Code, plus, for taxable years ending
1086	1086	24 on or after December 31, 2011, Section 45G(e)(3) of
1087	1087	25 the Internal Revenue Code and, for taxable years
1088	1088	26 ending on or after December 31, 2008, any amount
1089	1089
1090	1090
1091	1091
1092	1092
1093	1093
1094	1094	SB2279 - 30 - LRB104 12211 BDA 22316 b
1095	1095
1096	1096
1097	1097	SB2279- 31 -LRB104 12211 BDA 22316 b SB2279 - 31 - LRB104 12211 BDA 22316 b
1098	1098	SB2279 - 31 - LRB104 12211 BDA 22316 b
1099	1099	1 included in gross income under Section 87 of the
1100	1100	2 Internal Revenue Code; the provisions of this
1101	1101	3 subparagraph are exempt from the provisions of Section
1102	1102	4 250;
1103	1103	5 (N) An amount equal to all amounts included in
1104	1104	6 such total which are exempt from taxation by this
1105	1105	7 State either by reason of its statutes or Constitution
1106	1106	8 or by reason of the Constitution, treaties or statutes
1107	1107	9 of the United States; provided that, in the case of any
1108	1108	10 statute of this State that exempts income derived from
1109	1109	11 bonds or other obligations from the tax imposed under
1110	1110	12 this Act, the amount exempted shall be the interest
1111	1111	13 net of bond premium amortization;
1112	1112	14 (O) An amount equal to any contribution made to a
1113	1113	15 job training project established pursuant to the Tax
1114	1114	16 Increment Allocation Redevelopment Act;
1115	1115	17 (P) An amount equal to the amount of the deduction
1116	1116	18 used to compute the federal income tax credit for
1117	1117	19 restoration of substantial amounts held under claim of
1118	1118	20 right for the taxable year pursuant to Section 1341 of
1119	1119	21 the Internal Revenue Code or of any itemized deduction
1120	1120	22 taken from adjusted gross income in the computation of
1121	1121	23 taxable income for restoration of substantial amounts
1122	1122	24 held under claim of right for the taxable year;
1123	1123	25 (Q) An amount equal to any amounts included in
1124	1124	26 such total, received by the taxpayer as an
1125	1125
1126	1126
1127	1127
1128	1128
1129	1129
1130	1130	SB2279 - 31 - LRB104 12211 BDA 22316 b
1131	1131
1132	1132
1133	1133	SB2279- 32 -LRB104 12211 BDA 22316 b SB2279 - 32 - LRB104 12211 BDA 22316 b
1134	1134	SB2279 - 32 - LRB104 12211 BDA 22316 b
1135	1135	1 acceleration in the payment of life, endowment or
1136	1136	2 annuity benefits in advance of the time they would
1137	1137	3 otherwise be payable as an indemnity for a terminal
1138	1138	4 illness;
1139	1139	5 (R) An amount equal to the amount of any federal or
1140	1140	6 State bonus paid to veterans of the Persian Gulf War;
1141	1141	7 (S) An amount, to the extent included in adjusted
1142	1142	8 gross income, equal to the amount of a contribution
1143	1143	9 made in the taxable year on behalf of the taxpayer to a
1144	1144	10 medical care savings account established under the
1145	1145	11 Medical Care Savings Account Act or the Medical Care
1146	1146	12 Savings Account Act of 2000 to the extent the
1147	1147	13 contribution is accepted by the account administrator
1148	1148	14 as provided in that Act;
1149	1149	15 (T) An amount, to the extent included in adjusted
1150	1150	16 gross income, equal to the amount of interest earned
1151	1151	17 in the taxable year on a medical care savings account
1152	1152	18 established under the Medical Care Savings Account Act
1153	1153	19 or the Medical Care Savings Account Act of 2000 on
1154	1154	20 behalf of the taxpayer, other than interest added
1155	1155	21 pursuant to item (D-5) of this paragraph (2);
1156	1156	22 (U) For one taxable year beginning on or after
1157	1157	23 January 1, 1994, an amount equal to the total amount of
1158	1158	24 tax imposed and paid under subsections (a) and (b) of
1159	1159	25 Section 201 of this Act on grant amounts received by
1160	1160	26 the taxpayer under the Nursing Home Grant Assistance
1161	1161
1162	1162
1163	1163
1164	1164
1165	1165
1166	1166	SB2279 - 32 - LRB104 12211 BDA 22316 b
1167	1167
1168	1168
1169	1169	SB2279- 33 -LRB104 12211 BDA 22316 b SB2279 - 33 - LRB104 12211 BDA 22316 b
1170	1170	SB2279 - 33 - LRB104 12211 BDA 22316 b
1171	1171	1 Act during the taxpayer's taxable years 1992 and 1993;
1172	1172	2 (V) Beginning with tax years ending on or after
1173	1173	3 December 31, 1995 and ending with tax years ending on
1174	1174	4 or before December 31, 2004, an amount equal to the
1175	1175	5 amount paid by a taxpayer who is a self-employed
1176	1176	6 taxpayer, a partner of a partnership, or a shareholder
1177	1177	7 in a Subchapter S corporation for health insurance or
1178	1178	8 long-term care insurance for that taxpayer or that
1179	1179	9 taxpayer's spouse or dependents, to the extent that
1180	1180	10 the amount paid for that health insurance or long-term
1181	1181	11 care insurance may be deducted under Section 213 of
1182	1182	12 the Internal Revenue Code, has not been deducted on
1183	1183	13 the federal income tax return of the taxpayer, and
1184	1184	14 does not exceed the taxable income attributable to
1185	1185	15 that taxpayer's income, self-employment income, or
1186	1186	16 Subchapter S corporation income; except that no
1187	1187	17 deduction shall be allowed under this item (V) if the
1188	1188	18 taxpayer is eligible to participate in any health
1189	1189	19 insurance or long-term care insurance plan of an
1190	1190	20 employer of the taxpayer or the taxpayer's spouse. The
1191	1191	21 amount of the health insurance and long-term care
1192	1192	22 insurance subtracted under this item (V) shall be
1193	1193	23 determined by multiplying total health insurance and
1194	1194	24 long-term care insurance premiums paid by the taxpayer
1195	1195	25 times a number that represents the fractional
1196	1196	26 percentage of eligible medical expenses under Section
1197	1197
1198	1198
1199	1199
1200	1200
1201	1201
1202	1202	SB2279 - 33 - LRB104 12211 BDA 22316 b
1203	1203
1204	1204
1205	1205	SB2279- 34 -LRB104 12211 BDA 22316 b SB2279 - 34 - LRB104 12211 BDA 22316 b
1206	1206	SB2279 - 34 - LRB104 12211 BDA 22316 b
1207	1207	1 213 of the Internal Revenue Code of 1986 not actually
1208	1208	2 deducted on the taxpayer's federal income tax return;
1209	1209	3 (W) For taxable years beginning on or after
1210	1210	4 January 1, 1998, all amounts included in the
1211	1211	5 taxpayer's federal gross income in the taxable year
1212	1212	6 from amounts converted from a regular IRA to a Roth
1213	1213	7 IRA. This paragraph is exempt from the provisions of
1214	1214	8 Section 250;
1215	1215	9 (X) For taxable year 1999 and thereafter, an
1216	1216	10 amount equal to the amount of any (i) distributions,
1217	1217	11 to the extent includible in gross income for federal
1218	1218	12 income tax purposes, made to the taxpayer because of
1219	1219	13 his or her status as a victim of persecution for racial
1220	1220	14 or religious reasons by Nazi Germany or any other Axis
1221	1221	15 regime or as an heir of the victim and (ii) items of
1222	1222	16 income, to the extent includible in gross income for
1223	1223	17 federal income tax purposes, attributable to, derived
1224	1224	18 from or in any way related to assets stolen from,
1225	1225	19 hidden from, or otherwise lost to a victim of
1226	1226	20 persecution for racial or religious reasons by Nazi
1227	1227	21 Germany or any other Axis regime immediately prior to,
1228	1228	22 during, and immediately after World War II, including,
1229	1229	23 but not limited to, interest on the proceeds
1230	1230	24 receivable as insurance under policies issued to a
1231	1231	25 victim of persecution for racial or religious reasons
1232	1232	26 by Nazi Germany or any other Axis regime by European
1233	1233
1234	1234
1235	1235
1236	1236
1237	1237
1238	1238	SB2279 - 34 - LRB104 12211 BDA 22316 b
1239	1239
1240	1240
1241	1241	SB2279- 35 -LRB104 12211 BDA 22316 b SB2279 - 35 - LRB104 12211 BDA 22316 b
1242	1242	SB2279 - 35 - LRB104 12211 BDA 22316 b
1243	1243	1 insurance companies immediately prior to and during
1244	1244	2 World War II; provided, however, this subtraction from
1245	1245	3 federal adjusted gross income does not apply to assets
1246	1246	4 acquired with such assets or with the proceeds from
1247	1247	5 the sale of such assets; provided, further, this
1248	1248	6 paragraph shall only apply to a taxpayer who was the
1249	1249	7 first recipient of such assets after their recovery
1250	1250	8 and who is a victim of persecution for racial or
1251	1251	9 religious reasons by Nazi Germany or any other Axis
1252	1252	10 regime or as an heir of the victim. The amount of and
1253	1253	11 the eligibility for any public assistance, benefit, or
1254	1254	12 similar entitlement is not affected by the inclusion
1255	1255	13 of items (i) and (ii) of this paragraph in gross income
1256	1256	14 for federal income tax purposes. This paragraph is
1257	1257	15 exempt from the provisions of Section 250;
1258	1258	16 (Y) For taxable years beginning on or after
1259	1259	17 January 1, 2002 and ending on or before December 31,
1260	1260	18 2004, moneys contributed in the taxable year to a
1261	1261	19 College Savings Pool account under Section 16.5 of the
1262	1262	20 State Treasurer Act, except that amounts excluded from
1263	1263	21 gross income under Section 529(c)(3)(C)(i) of the
1264	1264	22 Internal Revenue Code shall not be considered moneys
1265	1265	23 contributed under this subparagraph (Y). For taxable
1266	1266	24 years beginning on or after January 1, 2005, a maximum
1267	1267	25 of $10,000 contributed in the taxable year to (i) a
1268	1268	26 College Savings Pool account under Section 16.5 of the
1269	1269
1270	1270
1271	1271
1272	1272
1273	1273
1274	1274	SB2279 - 35 - LRB104 12211 BDA 22316 b
1275	1275
1276	1276
1277	1277	SB2279- 36 -LRB104 12211 BDA 22316 b SB2279 - 36 - LRB104 12211 BDA 22316 b
1278	1278	SB2279 - 36 - LRB104 12211 BDA 22316 b
1279	1279	1 State Treasurer Act or (ii) the Illinois Prepaid
1280	1280	2 Tuition Trust Fund, except that amounts excluded from
1281	1281	3 gross income under Section 529(c)(3)(C)(i) of the
1282	1282	4 Internal Revenue Code shall not be considered moneys
1283	1283	5 contributed under this subparagraph (Y). For purposes
1284	1284	6 of this subparagraph, contributions made by an
1285	1285	7 employer on behalf of an employee, or matching
1286	1286	8 contributions made by an employee, shall be treated as
1287	1287	9 made by the employee. This subparagraph (Y) is exempt
1288	1288	10 from the provisions of Section 250;
1289	1289	11 (Z) For taxable years 2001 and thereafter, for the
1290	1290	12 taxable year in which the bonus depreciation deduction
1291	1291	13 is taken on the taxpayer's federal income tax return
1292	1292	14 under subsection (k) of Section 168 of the Internal
1293	1293	15 Revenue Code and for each applicable taxable year
1294	1294	16 thereafter, an amount equal to "x", where:
1295	1295	17 (1) "y" equals the amount of the depreciation
1296	1296	18 deduction taken for the taxable year on the
1297	1297	19 taxpayer's federal income tax return on property
1298	1298	20 for which the bonus depreciation deduction was
1299	1299	21 taken in any year under subsection (k) of Section
1300	1300	22 168 of the Internal Revenue Code, but not
1301	1301	23 including the bonus depreciation deduction;
1302	1302	24 (2) for taxable years ending on or before
1303	1303	25 December 31, 2005, "x" equals "y" multiplied by 30
1304	1304	26 and then divided by 70 (or "y" multiplied by
1305	1305
1306	1306
1307	1307
1308	1308
1309	1309
1310	1310	SB2279 - 36 - LRB104 12211 BDA 22316 b
1311	1311
1312	1312
1313	1313	SB2279- 37 -LRB104 12211 BDA 22316 b SB2279 - 37 - LRB104 12211 BDA 22316 b
1314	1314	SB2279 - 37 - LRB104 12211 BDA 22316 b
1315	1315	1 0.429); and
1316	1316	2 (3) for taxable years ending after December
1317	1317	3 31, 2005:
1318	1318	4 (i) for property on which a bonus
1319	1319	5 depreciation deduction of 30% of the adjusted
1320	1320	6 basis was taken, "x" equals "y" multiplied by
1321	1321	7 30 and then divided by 70 (or "y" multiplied
1322	1322	8 by 0.429);
1323	1323	9 (ii) for property on which a bonus
1324	1324	10 depreciation deduction of 50% of the adjusted
1325	1325	11 basis was taken, "x" equals "y" multiplied by
1326	1326	12 1.0;
1327	1327	13 (iii) for property on which a bonus
1328	1328	14 depreciation deduction of 100% of the adjusted
1329	1329	15 basis was taken in a taxable year ending on or
1330	1330	16 after December 31, 2021, "x" equals the
1331	1331	17 depreciation deduction that would be allowed
1332	1332	18 on that property if the taxpayer had made the
1333	1333	19 election under Section 168(k)(7) of the
1334	1334	20 Internal Revenue Code to not claim bonus
1335	1335	21 depreciation on that property; and
1336	1336	22 (iv) for property on which a bonus
1337	1337	23 depreciation deduction of a percentage other
1338	1338	24 than 30%, 50% or 100% of the adjusted basis
1339	1339	25 was taken in a taxable year ending on or after
1340	1340	26 December 31, 2021, "x" equals "y" multiplied
1341	1341
1342	1342
1343	1343
1344	1344
1345	1345
1346	1346	SB2279 - 37 - LRB104 12211 BDA 22316 b
1347	1347
1348	1348
1349	1349	SB2279- 38 -LRB104 12211 BDA 22316 b SB2279 - 38 - LRB104 12211 BDA 22316 b
1350	1350	SB2279 - 38 - LRB104 12211 BDA 22316 b
1351	1351	1 by 100 times the percentage bonus depreciation
1352	1352	2 on the property (that is, 100(bonus%)) and
1353	1353	3 then divided by 100 times 1 minus the
1354	1354	4 percentage bonus depreciation on the property
1355	1355	5 (that is, 100(1-bonus%)).
1356	1356	6 The aggregate amount deducted under this
1357	1357	7 subparagraph in all taxable years for any one piece of
1358	1358	8 property may not exceed the amount of the bonus
1359	1359	9 depreciation deduction taken on that property on the
1360	1360	10 taxpayer's federal income tax return under subsection
1361	1361	11 (k) of Section 168 of the Internal Revenue Code. This
1362	1362	12 subparagraph (Z) is exempt from the provisions of
1363	1363	13 Section 250;
1364	1364	14 (AA) If the taxpayer sells, transfers, abandons,
1365	1365	15 or otherwise disposes of property for which the
1366	1366	16 taxpayer was required in any taxable year to make an
1367	1367	17 addition modification under subparagraph (D-15), then
1368	1368	18 an amount equal to that addition modification.
1369	1369	19 If the taxpayer continues to own property through
1370	1370	20 the last day of the last tax year for which a
1371	1371	21 subtraction is allowed with respect to that property
1372	1372	22 under subparagraph (Z) and for which the taxpayer was
1373	1373	23 required in any taxable year to make an addition
1374	1374	24 modification under subparagraph (D-15), then an amount
1375	1375	25 equal to that addition modification.
1376	1376	26 The taxpayer is allowed to take the deduction
1377	1377
1378	1378
1379	1379
1380	1380
1381	1381
1382	1382	SB2279 - 38 - LRB104 12211 BDA 22316 b
1383	1383
1384	1384
1385	1385	SB2279- 39 -LRB104 12211 BDA 22316 b SB2279 - 39 - LRB104 12211 BDA 22316 b
1386	1386	SB2279 - 39 - LRB104 12211 BDA 22316 b
1387	1387	1 under this subparagraph only once with respect to any
1388	1388	2 one piece of property.
1389	1389	3 This subparagraph (AA) is exempt from the
1390	1390	4 provisions of Section 250;
1391	1391	5 (BB) Any amount included in adjusted gross income,
1392	1392	6 other than salary, received by a driver in a
1393	1393	7 ridesharing arrangement using a motor vehicle;
1394	1394	8 (CC) The amount of (i) any interest income (net of
1395	1395	9 the deductions allocable thereto) taken into account
1396	1396	10 for the taxable year with respect to a transaction
1397	1397	11 with a taxpayer that is required to make an addition
1398	1398	12 modification with respect to such transaction under
1399	1399	13 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
1400	1400	14 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
1401	1401	15 the amount of that addition modification, and (ii) any
1402	1402	16 income from intangible property (net of the deductions
1403	1403	17 allocable thereto) taken into account for the taxable
1404	1404	18 year with respect to a transaction with a taxpayer
1405	1405	19 that is required to make an addition modification with
1406	1406	20 respect to such transaction under Section
1407	1407	21 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
1408	1408	22 203(d)(2)(D-8), but not to exceed the amount of that
1409	1409	23 addition modification. This subparagraph (CC) is
1410	1410	24 exempt from the provisions of Section 250;
1411	1411	25 (DD) An amount equal to the interest income taken
1412	1412	26 into account for the taxable year (net of the
1413	1413
1414	1414
1415	1415
1416	1416
1417	1417
1418	1418	SB2279 - 39 - LRB104 12211 BDA 22316 b
1419	1419
1420	1420
1421	1421	SB2279- 40 -LRB104 12211 BDA 22316 b SB2279 - 40 - LRB104 12211 BDA 22316 b
1422	1422	SB2279 - 40 - LRB104 12211 BDA 22316 b
1423	1423	1 deductions allocable thereto) with respect to
1424	1424	2 transactions with (i) a foreign person who would be a
1425	1425	3 member of the taxpayer's unitary business group but
1426	1426	4 for the fact that the foreign person's business
1427	1427	5 activity outside the United States is 80% or more of
1428	1428	6 that person's total business activity and (ii) for
1429	1429	7 taxable years ending on or after December 31, 2008, to
1430	1430	8 a person who would be a member of the same unitary
1431	1431	9 business group but for the fact that the person is
1432	1432	10 prohibited under Section 1501(a)(27) from being
1433	1433	11 included in the unitary business group because he or
1434	1434	12 she is ordinarily required to apportion business
1435	1435	13 income under different subsections of Section 304, but
1436	1436	14 not to exceed the addition modification required to be
1437	1437	15 made for the same taxable year under Section
1438	1438	16 203(a)(2)(D-17) for interest paid, accrued, or
1439	1439	17 incurred, directly or indirectly, to the same person.
1440	1440	18 This subparagraph (DD) is exempt from the provisions
1441	1441	19 of Section 250;
1442	1442	20 (EE) An amount equal to the income from intangible
1443	1443	21 property taken into account for the taxable year (net
1444	1444	22 of the deductions allocable thereto) with respect to
1445	1445	23 transactions with (i) a foreign person who would be a
1446	1446	24 member of the taxpayer's unitary business group but
1447	1447	25 for the fact that the foreign person's business
1448	1448	26 activity outside the United States is 80% or more of
1449	1449
1450	1450
1451	1451
1452	1452
1453	1453
1454	1454	SB2279 - 40 - LRB104 12211 BDA 22316 b
1455	1455
1456	1456
1457	1457	SB2279- 41 -LRB104 12211 BDA 22316 b SB2279 - 41 - LRB104 12211 BDA 22316 b
1458	1458	SB2279 - 41 - LRB104 12211 BDA 22316 b
1459	1459	1 that person's total business activity and (ii) for
1460	1460	2 taxable years ending on or after December 31, 2008, to
1461	1461	3 a person who would be a member of the same unitary
1462	1462	4 business group but for the fact that the person is
1463	1463	5 prohibited under Section 1501(a)(27) from being
1464	1464	6 included in the unitary business group because he or
1465	1465	7 she is ordinarily required to apportion business
1466	1466	8 income under different subsections of Section 304, but
1467	1467	9 not to exceed the addition modification required to be
1468	1468	10 made for the same taxable year under Section
1469	1469	11 203(a)(2)(D-18) for intangible expenses and costs
1470	1470	12 paid, accrued, or incurred, directly or indirectly, to
1471	1471	13 the same foreign person. This subparagraph (EE) is
1472	1472	14 exempt from the provisions of Section 250;
1473	1473	15 (FF) An amount equal to any amount awarded to the
1474	1474	16 taxpayer during the taxable year by the Court of
1475	1475	17 Claims under subsection (c) of Section 8 of the Court
1476	1476	18 of Claims Act for time unjustly served in a State
1477	1477	19 prison. This subparagraph (FF) is exempt from the
1478	1478	20 provisions of Section 250;
1479	1479	21 (GG) For taxable years ending on or after December
1480	1480	22 31, 2011, in the case of a taxpayer who was required to
1481	1481	23 add back any insurance premiums under Section
1482	1482	24 203(a)(2)(D-19), such taxpayer may elect to subtract
1483	1483	25 that part of a reimbursement received from the
1484	1484	26 insurance company equal to the amount of the expense
1485	1485
1486	1486
1487	1487
1488	1488
1489	1489
1490	1490	SB2279 - 41 - LRB104 12211 BDA 22316 b
1491	1491
1492	1492
1493	1493	SB2279- 42 -LRB104 12211 BDA 22316 b SB2279 - 42 - LRB104 12211 BDA 22316 b
1494	1494	SB2279 - 42 - LRB104 12211 BDA 22316 b
1495	1495	1 or loss (including expenses incurred by the insurance
1496	1496	2 company) that would have been taken into account as a
1497	1497	3 deduction for federal income tax purposes if the
1498	1498	4 expense or loss had been uninsured. If a taxpayer
1499	1499	5 makes the election provided for by this subparagraph
1500	1500	6 (GG), the insurer to which the premiums were paid must
1501	1501	7 add back to income the amount subtracted by the
1502	1502	8 taxpayer pursuant to this subparagraph (GG). This
1503	1503	9 subparagraph (GG) is exempt from the provisions of
1504	1504	10 Section 250;
1505	1505	11 (HH) For taxable years beginning on or after
1506	1506	12 January 1, 2018 and prior to January 1, 2028, a maximum
1507	1507	13 of $10,000 contributed in the taxable year to a
1508	1508	14 qualified ABLE account under Section 16.6 of the State
1509	1509	15 Treasurer Act, except that amounts excluded from gross
1510	1510	16 income under Section 529(c)(3)(C)(i) or Section
1511	1511	17 529A(c)(1)(C) of the Internal Revenue Code shall not
1512	1512	18 be considered moneys contributed under this
1513	1513	19 subparagraph (HH). For purposes of this subparagraph
1514	1514	20 (HH), contributions made by an employer on behalf of
1515	1515	21 an employee, or matching contributions made by an
1516	1516	22 employee, shall be treated as made by the employee;
1517	1517	23 (II) For taxable years that begin on or after
1518	1518	24 January 1, 2021 and begin before January 1, 2026, the
1519	1519	25 amount that is included in the taxpayer's federal
1520	1520	26 adjusted gross income pursuant to Section 61 of the
1521	1521
1522	1522
1523	1523
1524	1524
1525	1525
1526	1526	SB2279 - 42 - LRB104 12211 BDA 22316 b
1527	1527
1528	1528
1529	1529	SB2279- 43 -LRB104 12211 BDA 22316 b SB2279 - 43 - LRB104 12211 BDA 22316 b
1530	1530	SB2279 - 43 - LRB104 12211 BDA 22316 b
1531	1531	1 Internal Revenue Code as discharge of indebtedness
1532	1532	2 attributable to student loan forgiveness and that is
1533	1533	3 not excluded from the taxpayer's federal adjusted
1534	1534	4 gross income pursuant to paragraph (5) of subsection
1535	1535	5 (f) of Section 108 of the Internal Revenue Code;
1536	1536	6 (JJ) For taxable years beginning on or after
1537	1537	7 January 1, 2023, for any cannabis establishment
1538	1538	8 operating in this State and licensed under the
1539	1539	9 Cannabis Regulation and Tax Act or any cannabis
1540	1540	10 cultivation center or medical cannabis dispensing
1541	1541	11 organization operating in this State and licensed
1542	1542	12 under the Compassionate Use of Medical Cannabis
1543	1543	13 Program Act, an amount equal to the deductions that
1544	1544	14 were disallowed under Section 280E of the Internal
1545	1545	15 Revenue Code for the taxable year and that would not be
1546	1546	16 added back under this subsection. The provisions of
1547	1547	17 this subparagraph (JJ) are exempt from the provisions
1548	1548	18 of Section 250; and
1549	1549	19 (KK) To the extent includible in gross income for
1550	1550	20 federal income tax purposes, any amount awarded or
1551	1551	21 paid to the taxpayer as a result of a judgment or
1552	1552	22 settlement for fertility fraud as provided in Section
1553	1553	23 15 of the Illinois Fertility Fraud Act, donor
1554	1554	24 fertility fraud as provided in Section 20 of the
1555	1555	25 Illinois Fertility Fraud Act, or similar action in
1556	1556	26 another state; and
1557	1557
1558	1558
1559	1559
1560	1560
1561	1561
1562	1562	SB2279 - 43 - LRB104 12211 BDA 22316 b
1563	1563
1564	1564
1565	1565	SB2279- 44 -LRB104 12211 BDA 22316 b SB2279 - 44 - LRB104 12211 BDA 22316 b
1566	1566	SB2279 - 44 - LRB104 12211 BDA 22316 b
1567	1567	1 (LL) For taxable years beginning on or after
1568	1568	2 January 1, 2026, if the taxpayer is a qualified
1569	1569	3 worker, as defined in the Workforce Development
1570	1570	4 through Charitable Loan Repayment Act, an amount equal
1571	1571	5 to the amount included in the taxpayer's federal
1572	1572	6 adjusted gross income that is attributable to student
1573	1573	7 loan repayment assistance received by the taxpayer
1574	1574	8 during the taxable year from a qualified community
1575	1575	9 foundation under the provisions of the Workforce
1576	1576	10 Development through Through Charitable Loan Repayment
1577	1577	11 Act.
1578	1578	12 This subparagraph (LL) is exempt from the
1579	1579	13 provisions of Section 250; .
1580	1580	14 (MM) (LL) For taxable years beginning on or after
1581	1581	15 January 1, 2025, if the taxpayer is an eligible
1582	1582	16 resident as defined in the Medical Debt Relief Act, an
1583	1583	17 amount equal to the amount included in the taxpayer's
1584	1584	18 federal adjusted gross income that is attributable to
1585	1585	19 medical debt relief received by the taxpayer during
1586	1586	20 the taxable year from a nonprofit medical debt relief
1587	1587	21 coordinator under the provisions of the Medical Debt
1588	1588	22 Relief Act. This subparagraph (MM) (LL) is exempt from
1589	1589	23 the provisions of Section 250; and
1590	1590	24 (NN) For taxable years that begin on or after
1591	1591	25 January 1, 2028, any amount received from the
1592	1592	26 Responsibility in Firearm Legislation (RIFL) Fund or
1593	1593
1594	1594
1595	1595
1596	1596
1597	1597
1598	1598	SB2279 - 44 - LRB104 12211 BDA 22316 b
1599	1599
1600	1600
1601	1601	SB2279- 45 -LRB104 12211 BDA 22316 b SB2279 - 45 - LRB104 12211 BDA 22316 b
1602	1602	SB2279 - 45 - LRB104 12211 BDA 22316 b
1603	1603	1 the Responsibility in Firearm Legislation (RIFL)
1604	1604	2 Financial Assistance Program to the extent included in
1605	1605	3 the taxpayer's federal adjusted gross income and that
1606	1606	4 is not excluded from the taxpayer's federal adjusted
1607	1607	5 gross income.
1608	1608	6 (b) Corporations.
1609	1609	7 (1) In general. In the case of a corporation, base
1610	1610	8 income means an amount equal to the taxpayer's taxable
1611	1611	9 income for the taxable year as modified by paragraph (2).
1612	1612	10 (2) Modifications. The taxable income referred to in
1613	1613	11 paragraph (1) shall be modified by adding thereto the sum
1614	1614	12 of the following amounts:
1615	1615	13 (A) An amount equal to all amounts paid or accrued
1616	1616	14 to the taxpayer as interest and all distributions
1617	1617	15 received from regulated investment companies during
1618	1618	16 the taxable year to the extent excluded from gross
1619	1619	17 income in the computation of taxable income;
1620	1620	18 (B) An amount equal to the amount of tax imposed by
1621	1621	19 this Act to the extent deducted from gross income in
1622	1622	20 the computation of taxable income for the taxable
1623	1623	21 year;
1624	1624	22 (C) In the case of a regulated investment company,
1625	1625	23 an amount equal to the excess of (i) the net long-term
1626	1626	24 capital gain for the taxable year, over (ii) the
1627	1627	25 amount of the capital gain dividends designated as
1628	1628
1629	1629
1630	1630
1631	1631
1632	1632
1633	1633	SB2279 - 45 - LRB104 12211 BDA 22316 b
1634	1634
1635	1635
1636	1636	SB2279- 46 -LRB104 12211 BDA 22316 b SB2279 - 46 - LRB104 12211 BDA 22316 b
1637	1637	SB2279 - 46 - LRB104 12211 BDA 22316 b
1638	1638	1 such in accordance with Section 852(b)(3)(C) of the
1639	1639	2 Internal Revenue Code and any amount designated under
1640	1640	3 Section 852(b)(3)(D) of the Internal Revenue Code,
1641	1641	4 attributable to the taxable year (this amendatory Act
1642	1642	5 of 1995 (Public Act 89-89) is declarative of existing
1643	1643	6 law and is not a new enactment);
1644	1644	7 (D) The amount of any net operating loss deduction
1645	1645	8 taken in arriving at taxable income, other than a net
1646	1646	9 operating loss carried forward from a taxable year
1647	1647	10 ending prior to December 31, 1986;
1648	1648	11 (E) For taxable years in which a net operating
1649	1649	12 loss carryback or carryforward from a taxable year
1650	1650	13 ending prior to December 31, 1986 is an element of
1651	1651	14 taxable income under paragraph (1) of subsection (e)
1652	1652	15 or subparagraph (E) of paragraph (2) of subsection
1653	1653	16 (e), the amount by which addition modifications other
1654	1654	17 than those provided by this subparagraph (E) exceeded
1655	1655	18 subtraction modifications in such earlier taxable
1656	1656	19 year, with the following limitations applied in the
1657	1657	20 order that they are listed:
1658	1658	21 (i) the addition modification relating to the
1659	1659	22 net operating loss carried back or forward to the
1660	1660	23 taxable year from any taxable year ending prior to
1661	1661	24 December 31, 1986 shall be reduced by the amount
1662	1662	25 of addition modification under this subparagraph
1663	1663	26 (E) which related to that net operating loss and
1664	1664
1665	1665
1666	1666
1667	1667
1668	1668
1669	1669	SB2279 - 46 - LRB104 12211 BDA 22316 b
1670	1670
1671	1671
1672	1672	SB2279- 47 -LRB104 12211 BDA 22316 b SB2279 - 47 - LRB104 12211 BDA 22316 b
1673	1673	SB2279 - 47 - LRB104 12211 BDA 22316 b
1674	1674	1 which was taken into account in calculating the
1675	1675	2 base income of an earlier taxable year, and
1676	1676	3 (ii) the addition modification relating to the
1677	1677	4 net operating loss carried back or forward to the
1678	1678	5 taxable year from any taxable year ending prior to
1679	1679	6 December 31, 1986 shall not exceed the amount of
1680	1680	7 such carryback or carryforward;
1681	1681	8 For taxable years in which there is a net
1682	1682	9 operating loss carryback or carryforward from more
1683	1683	10 than one other taxable year ending prior to December
1684	1684	11 31, 1986, the addition modification provided in this
1685	1685	12 subparagraph (E) shall be the sum of the amounts
1686	1686	13 computed independently under the preceding provisions
1687	1687	14 of this subparagraph (E) for each such taxable year;
1688	1688	15 (E-5) For taxable years ending after December 31,
1689	1689	16 1997, an amount equal to any eligible remediation
1690	1690	17 costs that the corporation deducted in computing
1691	1691	18 adjusted gross income and for which the corporation
1692	1692	19 claims a credit under subsection (l) of Section 201;
1693	1693	20 (E-10) For taxable years 2001 and thereafter, an
1694	1694	21 amount equal to the bonus depreciation deduction taken
1695	1695	22 on the taxpayer's federal income tax return for the
1696	1696	23 taxable year under subsection (k) of Section 168 of
1697	1697	24 the Internal Revenue Code;
1698	1698	25 (E-11) If the taxpayer sells, transfers, abandons,
1699	1699	26 or otherwise disposes of property for which the
1700	1700
1701	1701
1702	1702
1703	1703
1704	1704
1705	1705	SB2279 - 47 - LRB104 12211 BDA 22316 b
1706	1706
1707	1707
1708	1708	SB2279- 48 -LRB104 12211 BDA 22316 b SB2279 - 48 - LRB104 12211 BDA 22316 b
1709	1709	SB2279 - 48 - LRB104 12211 BDA 22316 b
1710	1710	1 taxpayer was required in any taxable year to make an
1711	1711	2 addition modification under subparagraph (E-10), then
1712	1712	3 an amount equal to the aggregate amount of the
1713	1713	4 deductions taken in all taxable years under
1714	1714	5 subparagraph (T) with respect to that property.
1715	1715	6 If the taxpayer continues to own property through
1716	1716	7 the last day of the last tax year for which a
1717	1717	8 subtraction is allowed with respect to that property
1718	1718	9 under subparagraph (T) and for which the taxpayer was
1719	1719	10 allowed in any taxable year to make a subtraction
1720	1720	11 modification under subparagraph (T), then an amount
1721	1721	12 equal to that subtraction modification.
1722	1722	13 The taxpayer is required to make the addition
1723	1723	14 modification under this subparagraph only once with
1724	1724	15 respect to any one piece of property;
1725	1725	16 (E-12) An amount equal to the amount otherwise
1726	1726	17 allowed as a deduction in computing base income for
1727	1727	18 interest paid, accrued, or incurred, directly or
1728	1728	19 indirectly, (i) for taxable years ending on or after
1729	1729	20 December 31, 2004, to a foreign person who would be a
1730	1730	21 member of the same unitary business group but for the
1731	1731	22 fact the foreign person's business activity outside
1732	1732	23 the United States is 80% or more of the foreign
1733	1733	24 person's total business activity and (ii) for taxable
1734	1734	25 years ending on or after December 31, 2008, to a person
1735	1735	26 who would be a member of the same unitary business
1736	1736
1737	1737
1738	1738
1739	1739
1740	1740
1741	1741	SB2279 - 48 - LRB104 12211 BDA 22316 b
1742	1742
1743	1743
1744	1744	SB2279- 49 -LRB104 12211 BDA 22316 b SB2279 - 49 - LRB104 12211 BDA 22316 b
1745	1745	SB2279 - 49 - LRB104 12211 BDA 22316 b
1746	1746	1 group but for the fact that the person is prohibited
1747	1747	2 under Section 1501(a)(27) from being included in the
1748	1748	3 unitary business group because he or she is ordinarily
1749	1749	4 required to apportion business income under different
1750	1750	5 subsections of Section 304. The addition modification
1751	1751	6 required by this subparagraph shall be reduced to the
1752	1752	7 extent that dividends were included in base income of
1753	1753	8 the unitary group for the same taxable year and
1754	1754	9 received by the taxpayer or by a member of the
1755	1755	10 taxpayer's unitary business group (including amounts
1756	1756	11 included in gross income pursuant to Sections 951
1757	1757	12 through 964 of the Internal Revenue Code and amounts
1758	1758	13 included in gross income under Section 78 of the
1759	1759	14 Internal Revenue Code) with respect to the stock of
1760	1760	15 the same person to whom the interest was paid,
1761	1761	16 accrued, or incurred.
1762	1762	17 This paragraph shall not apply to the following:
1763	1763	18 (i) an item of interest paid, accrued, or
1764	1764	19 incurred, directly or indirectly, to a person who
1765	1765	20 is subject in a foreign country or state, other
1766	1766	21 than a state which requires mandatory unitary
1767	1767	22 reporting, to a tax on or measured by net income
1768	1768	23 with respect to such interest; or
1769	1769	24 (ii) an item of interest paid, accrued, or
1770	1770	25 incurred, directly or indirectly, to a person if
1771	1771	26 the taxpayer can establish, based on a
1772	1772
1773	1773
1774	1774
1775	1775
1776	1776
1777	1777	SB2279 - 49 - LRB104 12211 BDA 22316 b
1778	1778
1779	1779
1780	1780	SB2279- 50 -LRB104 12211 BDA 22316 b SB2279 - 50 - LRB104 12211 BDA 22316 b
1781	1781	SB2279 - 50 - LRB104 12211 BDA 22316 b
1782	1782	1 preponderance of the evidence, both of the
1783	1783	2 following:
1784	1784	3 (a) the person, during the same taxable
1785	1785	4 year, paid, accrued, or incurred, the interest
1786	1786	5 to a person that is not a related member, and
1787	1787	6 (b) the transaction giving rise to the
1788	1788	7 interest expense between the taxpayer and the
1789	1789	8 person did not have as a principal purpose the
1790	1790	9 avoidance of Illinois income tax, and is paid
1791	1791	10 pursuant to a contract or agreement that
1792	1792	11 reflects an arm's-length interest rate and
1793	1793	12 terms; or
1794	1794	13 (iii) the taxpayer can establish, based on
1795	1795	14 clear and convincing evidence, that the interest
1796	1796	15 paid, accrued, or incurred relates to a contract
1797	1797	16 or agreement entered into at arm's-length rates
1798	1798	17 and terms and the principal purpose for the
1799	1799	18 payment is not federal or Illinois tax avoidance;
1800	1800	19 or
1801	1801	20 (iv) an item of interest paid, accrued, or
1802	1802	21 incurred, directly or indirectly, to a person if
1803	1803	22 the taxpayer establishes by clear and convincing
1804	1804	23 evidence that the adjustments are unreasonable; or
1805	1805	24 if the taxpayer and the Director agree in writing
1806	1806	25 to the application or use of an alternative method
1807	1807	26 of apportionment under Section 304(f).
1808	1808
1809	1809
1810	1810
1811	1811
1812	1812
1813	1813	SB2279 - 50 - LRB104 12211 BDA 22316 b
1814	1814
1815	1815
1816	1816	SB2279- 51 -LRB104 12211 BDA 22316 b SB2279 - 51 - LRB104 12211 BDA 22316 b
1817	1817	SB2279 - 51 - LRB104 12211 BDA 22316 b
1818	1818	1 Nothing in this subsection shall preclude the
1819	1819	2 Director from making any other adjustment
1820	1820	3 otherwise allowed under Section 404 of this Act
1821	1821	4 for any tax year beginning after the effective
1822	1822	5 date of this amendment provided such adjustment is
1823	1823	6 made pursuant to regulation adopted by the
1824	1824	7 Department and such regulations provide methods
1825	1825	8 and standards by which the Department will utilize
1826	1826	9 its authority under Section 404 of this Act;
1827	1827	10 (E-13) An amount equal to the amount of intangible
1828	1828	11 expenses and costs otherwise allowed as a deduction in
1829	1829	12 computing base income, and that were paid, accrued, or
1830	1830	13 incurred, directly or indirectly, (i) for taxable
1831	1831	14 years ending on or after December 31, 2004, to a
1832	1832	15 foreign person who would be a member of the same
1833	1833	16 unitary business group but for the fact that the
1834	1834	17 foreign person's business activity outside the United
1835	1835	18 States is 80% or more of that person's total business
1836	1836	19 activity and (ii) for taxable years ending on or after
1837	1837	20 December 31, 2008, to a person who would be a member of
1838	1838	21 the same unitary business group but for the fact that
1839	1839	22 the person is prohibited under Section 1501(a)(27)
1840	1840	23 from being included in the unitary business group
1841	1841	24 because he or she is ordinarily required to apportion
1842	1842	25 business income under different subsections of Section
1843	1843	26 304. The addition modification required by this
1844	1844
1845	1845
1846	1846
1847	1847
1848	1848
1849	1849	SB2279 - 51 - LRB104 12211 BDA 22316 b
1850	1850
1851	1851
1852	1852	SB2279- 52 -LRB104 12211 BDA 22316 b SB2279 - 52 - LRB104 12211 BDA 22316 b
1853	1853	SB2279 - 52 - LRB104 12211 BDA 22316 b
1854	1854	1 subparagraph shall be reduced to the extent that
1855	1855	2 dividends were included in base income of the unitary
1856	1856	3 group for the same taxable year and received by the
1857	1857	4 taxpayer or by a member of the taxpayer's unitary
1858	1858	5 business group (including amounts included in gross
1859	1859	6 income pursuant to Sections 951 through 964 of the
1860	1860	7 Internal Revenue Code and amounts included in gross
1861	1861	8 income under Section 78 of the Internal Revenue Code)
1862	1862	9 with respect to the stock of the same person to whom
1863	1863	10 the intangible expenses and costs were directly or
1864	1864	11 indirectly paid, incurred, or accrued. The preceding
1865	1865	12 sentence shall not apply to the extent that the same
1866	1866	13 dividends caused a reduction to the addition
1867	1867	14 modification required under Section 203(b)(2)(E-12) of
1868	1868	15 this Act. As used in this subparagraph, the term
1869	1869	16 "intangible expenses and costs" includes (1) expenses,
1870	1870	17 losses, and costs for, or related to, the direct or
1871	1871	18 indirect acquisition, use, maintenance or management,
1872	1872	19 ownership, sale, exchange, or any other disposition of
1873	1873	20 intangible property; (2) losses incurred, directly or
1874	1874	21 indirectly, from factoring transactions or discounting
1875	1875	22 transactions; (3) royalty, patent, technical, and
1876	1876	23 copyright fees; (4) licensing fees; and (5) other
1877	1877	24 similar expenses and costs. For purposes of this
1878	1878	25 subparagraph, "intangible property" includes patents,
1879	1879	26 patent applications, trade names, trademarks, service
1880	1880
1881	1881
1882	1882
1883	1883
1884	1884
1885	1885	SB2279 - 52 - LRB104 12211 BDA 22316 b
1886	1886
1887	1887
1888	1888	SB2279- 53 -LRB104 12211 BDA 22316 b SB2279 - 53 - LRB104 12211 BDA 22316 b
1889	1889	SB2279 - 53 - LRB104 12211 BDA 22316 b
1890	1890	1 marks, copyrights, mask works, trade secrets, and
1891	1891	2 similar types of intangible assets.
1892	1892	3 This paragraph shall not apply to the following:
1893	1893	4 (i) any item of intangible expenses or costs
1894	1894	5 paid, accrued, or incurred, directly or
1895	1895	6 indirectly, from a transaction with a person who
1896	1896	7 is subject in a foreign country or state, other
1897	1897	8 than a state which requires mandatory unitary
1898	1898	9 reporting, to a tax on or measured by net income
1899	1899	10 with respect to such item; or
1900	1900	11 (ii) any item of intangible expense or cost
1901	1901	12 paid, accrued, or incurred, directly or
1902	1902	13 indirectly, if the taxpayer can establish, based
1903	1903	14 on a preponderance of the evidence, both of the
1904	1904	15 following:
1905	1905	16 (a) the person during the same taxable
1906	1906	17 year paid, accrued, or incurred, the
1907	1907	18 intangible expense or cost to a person that is
1908	1908	19 not a related member, and
1909	1909	20 (b) the transaction giving rise to the
1910	1910	21 intangible expense or cost between the
1911	1911	22 taxpayer and the person did not have as a
1912	1912	23 principal purpose the avoidance of Illinois
1913	1913	24 income tax, and is paid pursuant to a contract
1914	1914	25 or agreement that reflects arm's-length terms;
1915	1915	26 or
1916	1916
1917	1917
1918	1918
1919	1919
1920	1920
1921	1921	SB2279 - 53 - LRB104 12211 BDA 22316 b
1922	1922
1923	1923
1924	1924	SB2279- 54 -LRB104 12211 BDA 22316 b SB2279 - 54 - LRB104 12211 BDA 22316 b
1925	1925	SB2279 - 54 - LRB104 12211 BDA 22316 b
1926	1926	1 (iii) any item of intangible expense or cost
1927	1927	2 paid, accrued, or incurred, directly or
1928	1928	3 indirectly, from a transaction with a person if
1929	1929	4 the taxpayer establishes by clear and convincing
1930	1930	5 evidence, that the adjustments are unreasonable;
1931	1931	6 or if the taxpayer and the Director agree in
1932	1932	7 writing to the application or use of an
1933	1933	8 alternative method of apportionment under Section
1934	1934	9 304(f);
1935	1935	10 Nothing in this subsection shall preclude the
1936	1936	11 Director from making any other adjustment
1937	1937	12 otherwise allowed under Section 404 of this Act
1938	1938	13 for any tax year beginning after the effective
1939	1939	14 date of this amendment provided such adjustment is
1940	1940	15 made pursuant to regulation adopted by the
1941	1941	16 Department and such regulations provide methods
1942	1942	17 and standards by which the Department will utilize
1943	1943	18 its authority under Section 404 of this Act;
1944	1944	19 (E-14) For taxable years ending on or after
1945	1945	20 December 31, 2008, an amount equal to the amount of
1946	1946	21 insurance premium expenses and costs otherwise allowed
1947	1947	22 as a deduction in computing base income, and that were
1948	1948	23 paid, accrued, or incurred, directly or indirectly, to
1949	1949	24 a person who would be a member of the same unitary
1950	1950	25 business group but for the fact that the person is
1951	1951	26 prohibited under Section 1501(a)(27) from being
1952	1952
1953	1953
1954	1954
1955	1955
1956	1956
1957	1957	SB2279 - 54 - LRB104 12211 BDA 22316 b
1958	1958
1959	1959
1960	1960	SB2279- 55 -LRB104 12211 BDA 22316 b SB2279 - 55 - LRB104 12211 BDA 22316 b
1961	1961	SB2279 - 55 - LRB104 12211 BDA 22316 b
1962	1962	1 included in the unitary business group because he or
1963	1963	2 she is ordinarily required to apportion business
1964	1964	3 income under different subsections of Section 304. The
1965	1965	4 addition modification required by this subparagraph
1966	1966	5 shall be reduced to the extent that dividends were
1967	1967	6 included in base income of the unitary group for the
1968	1968	7 same taxable year and received by the taxpayer or by a
1969	1969	8 member of the taxpayer's unitary business group
1970	1970	9 (including amounts included in gross income under
1971	1971	10 Sections 951 through 964 of the Internal Revenue Code
1972	1972	11 and amounts included in gross income under Section 78
1973	1973	12 of the Internal Revenue Code) with respect to the
1974	1974	13 stock of the same person to whom the premiums and costs
1975	1975	14 were directly or indirectly paid, incurred, or
1976	1976	15 accrued. The preceding sentence does not apply to the
1977	1977	16 extent that the same dividends caused a reduction to
1978	1978	17 the addition modification required under Section
1979	1979	18 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
1980	1980	19 Act;
1981	1981	20 (E-15) For taxable years beginning after December
1982	1982	21 31, 2008, any deduction for dividends paid by a
1983	1983	22 captive real estate investment trust that is allowed
1984	1984	23 to a real estate investment trust under Section
1985	1985	24 857(b)(2)(B) of the Internal Revenue Code for
1986	1986	25 dividends paid;
1987	1987	26 (E-16) An amount equal to the credit allowable to
1988	1988
1989	1989
1990	1990
1991	1991
1992	1992
1993	1993	SB2279 - 55 - LRB104 12211 BDA 22316 b
1994	1994
1995	1995
1996	1996	SB2279- 56 -LRB104 12211 BDA 22316 b SB2279 - 56 - LRB104 12211 BDA 22316 b
1997	1997	SB2279 - 56 - LRB104 12211 BDA 22316 b
1998	1998	1 the taxpayer under Section 218(a) of this Act,
1999	1999	2 determined without regard to Section 218(c) of this
2000	2000	3 Act;
2001	2001	4 (E-17) For taxable years ending on or after
2002	2002	5 December 31, 2017, an amount equal to the deduction
2003	2003	6 allowed under Section 199 of the Internal Revenue Code
2004	2004	7 for the taxable year;
2005	2005	8 (E-18) for taxable years beginning after December
2006	2006	9 31, 2018, an amount equal to the deduction allowed
2007	2007	10 under Section 250(a)(1)(A) of the Internal Revenue
2008	2008	11 Code for the taxable year;
2009	2009	12 (E-19) for taxable years ending on or after June
2010	2010	13 30, 2021, an amount equal to the deduction allowed
2011	2011	14 under Section 250(a)(1)(B)(i) of the Internal Revenue
2012	2012	15 Code for the taxable year;
2013	2013	16 (E-20) for taxable years ending on or after June
2014	2014	17 30, 2021, an amount equal to the deduction allowed
2015	2015	18 under Sections 243(e) and 245A(a) of the Internal
2016	2016	19 Revenue Code for the taxable year;
2017	2017	20 (E-21) the amount that is claimed as a federal
2018	2018	21 deduction when computing the taxpayer's federal
2019	2019	22 taxable income for the taxable year and that is
2020	2020	23 attributable to an endowment gift for which the
2021	2021	24 taxpayer receives a credit under the Illinois Gives
2022	2022	25 Tax Credit Act;
2023	2023	26 and by deducting from the total so obtained the sum of the
2024	2024
2025	2025
2026	2026
2027	2027
2028	2028
2029	2029	SB2279 - 56 - LRB104 12211 BDA 22316 b
2030	2030
2031	2031
2032	2032	SB2279- 57 -LRB104 12211 BDA 22316 b SB2279 - 57 - LRB104 12211 BDA 22316 b
2033	2033	SB2279 - 57 - LRB104 12211 BDA 22316 b
2034	2034	1 following amounts:
2035	2035	2 (F) An amount equal to the amount of any tax
2036	2036	3 imposed by this Act which was refunded to the taxpayer
2037	2037	4 and included in such total for the taxable year;
2038	2038	5 (G) An amount equal to any amount included in such
2039	2039	6 total under Section 78 of the Internal Revenue Code;
2040	2040	7 (H) In the case of a regulated investment company,
2041	2041	8 an amount equal to the amount of exempt interest
2042	2042	9 dividends as defined in subsection (b)(5) of Section
2043	2043	10 852 of the Internal Revenue Code, paid to shareholders
2044	2044	11 for the taxable year;
2045	2045	12 (I) With the exception of any amounts subtracted
2046	2046	13 under subparagraph (J), an amount equal to the sum of
2047	2047	14 all amounts disallowed as deductions by (i) Sections
2048	2048	15 171(a)(2) and 265(a)(2) and amounts disallowed as
2049	2049	16 interest expense by Section 291(a)(3) of the Internal
2050	2050	17 Revenue Code, and all amounts of expenses allocable to
2051	2051	18 interest and disallowed as deductions by Section
2052	2052	19 265(a)(1) of the Internal Revenue Code; and (ii) for
2053	2053	20 taxable years ending on or after August 13, 1999,
2054	2054	21 Sections 171(a)(2), 265, 280C, 291(a)(3), and
2055	2055	22 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
2056	2056	23 for tax years ending on or after December 31, 2011,
2057	2057	24 amounts disallowed as deductions by Section 45G(e)(3)
2058	2058	25 of the Internal Revenue Code and, for taxable years
2059	2059	26 ending on or after December 31, 2008, any amount
2060	2060
2061	2061
2062	2062
2063	2063
2064	2064
2065	2065	SB2279 - 57 - LRB104 12211 BDA 22316 b
2066	2066
2067	2067
2068	2068	SB2279- 58 -LRB104 12211 BDA 22316 b SB2279 - 58 - LRB104 12211 BDA 22316 b
2069	2069	SB2279 - 58 - LRB104 12211 BDA 22316 b
2070	2070	1 included in gross income under Section 87 of the
2071	2071	2 Internal Revenue Code and the policyholders' share of
2072	2072	3 tax-exempt interest of a life insurance company under
2073	2073	4 Section 807(a)(2)(B) of the Internal Revenue Code (in
2074	2074	5 the case of a life insurance company with gross income
2075	2075	6 from a decrease in reserves for the tax year) or
2076	2076	7 Section 807(b)(1)(B) of the Internal Revenue Code (in
2077	2077	8 the case of a life insurance company allowed a
2078	2078	9 deduction for an increase in reserves for the tax
2079	2079	10 year); the provisions of this subparagraph are exempt
2080	2080	11 from the provisions of Section 250;
2081	2081	12 (J) An amount equal to all amounts included in
2082	2082	13 such total which are exempt from taxation by this
2083	2083	14 State either by reason of its statutes or Constitution
2084	2084	15 or by reason of the Constitution, treaties or statutes
2085	2085	16 of the United States; provided that, in the case of any
2086	2086	17 statute of this State that exempts income derived from
2087	2087	18 bonds or other obligations from the tax imposed under
2088	2088	19 this Act, the amount exempted shall be the interest
2089	2089	20 net of bond premium amortization;
2090	2090	21 (K) An amount equal to those dividends included in
2091	2091	22 such total which were paid by a corporation which
2092	2092	23 conducts business operations in a River Edge
2093	2093	24 Redevelopment Zone or zones created under the River
2094	2094	25 Edge Redevelopment Zone Act and conducts substantially
2095	2095	26 all of its operations in a River Edge Redevelopment
2096	2096
2097	2097
2098	2098
2099	2099
2100	2100
2101	2101	SB2279 - 58 - LRB104 12211 BDA 22316 b
2102	2102
2103	2103
2104	2104	SB2279- 59 -LRB104 12211 BDA 22316 b SB2279 - 59 - LRB104 12211 BDA 22316 b
2105	2105	SB2279 - 59 - LRB104 12211 BDA 22316 b
2106	2106	1 Zone or zones. This subparagraph (K) is exempt from
2107	2107	2 the provisions of Section 250;
2108	2108	3 (L) An amount equal to those dividends included in
2109	2109	4 such total that were paid by a corporation that
2110	2110	5 conducts business operations in a federally designated
2111	2111	6 Foreign Trade Zone or Sub-Zone and that is designated
2112	2112	7 a High Impact Business located in Illinois; provided
2113	2113	8 that dividends eligible for the deduction provided in
2114	2114	9 subparagraph (K) of paragraph 2 of this subsection
2115	2115	10 shall not be eligible for the deduction provided under
2116	2116	11 this subparagraph (L);
2117	2117	12 (M) For any taxpayer that is a financial
2118	2118	13 organization within the meaning of Section 304(c) of
2119	2119	14 this Act, an amount included in such total as interest
2120	2120	15 income from a loan or loans made by such taxpayer to a
2121	2121	16 borrower, to the extent that such a loan is secured by
2122	2122	17 property which is eligible for the River Edge
2123	2123	18 Redevelopment Zone Investment Credit. To determine the
2124	2124	19 portion of a loan or loans that is secured by property
2125	2125	20 eligible for a Section 201(f) investment credit to the
2126	2126	21 borrower, the entire principal amount of the loan or
2127	2127	22 loans between the taxpayer and the borrower should be
2128	2128	23 divided into the basis of the Section 201(f)
2129	2129	24 investment credit property which secures the loan or
2130	2130	25 loans, using for this purpose the original basis of
2131	2131	26 such property on the date that it was placed in service
2132	2132
2133	2133
2134	2134
2135	2135
2136	2136
2137	2137	SB2279 - 59 - LRB104 12211 BDA 22316 b
2138	2138
2139	2139
2140	2140	SB2279- 60 -LRB104 12211 BDA 22316 b SB2279 - 60 - LRB104 12211 BDA 22316 b
2141	2141	SB2279 - 60 - LRB104 12211 BDA 22316 b
2142	2142	1 in the River Edge Redevelopment Zone. The subtraction
2143	2143	2 modification available to the taxpayer in any year
2144	2144	3 under this subsection shall be that portion of the
2145	2145	4 total interest paid by the borrower with respect to
2146	2146	5 such loan attributable to the eligible property as
2147	2147	6 calculated under the previous sentence. This
2148	2148	7 subparagraph (M) is exempt from the provisions of
2149	2149	8 Section 250;
2150	2150	9 (M-1) For any taxpayer that is a financial
2151	2151	10 organization within the meaning of Section 304(c) of
2152	2152	11 this Act, an amount included in such total as interest
2153	2153	12 income from a loan or loans made by such taxpayer to a
2154	2154	13 borrower, to the extent that such a loan is secured by
2155	2155	14 property which is eligible for the High Impact
2156	2156	15 Business Investment Credit. To determine the portion
2157	2157	16 of a loan or loans that is secured by property eligible
2158	2158	17 for a Section 201(h) investment credit to the
2159	2159	18 borrower, the entire principal amount of the loan or
2160	2160	19 loans between the taxpayer and the borrower should be
2161	2161	20 divided into the basis of the Section 201(h)
2162	2162	21 investment credit property which secures the loan or
2163	2163	22 loans, using for this purpose the original basis of
2164	2164	23 such property on the date that it was placed in service
2165	2165	24 in a federally designated Foreign Trade Zone or
2166	2166	25 Sub-Zone located in Illinois. No taxpayer that is
2167	2167	26 eligible for the deduction provided in subparagraph
2168	2168
2169	2169
2170	2170
2171	2171
2172	2172
2173	2173	SB2279 - 60 - LRB104 12211 BDA 22316 b
2174	2174
2175	2175
2176	2176	SB2279- 61 -LRB104 12211 BDA 22316 b SB2279 - 61 - LRB104 12211 BDA 22316 b
2177	2177	SB2279 - 61 - LRB104 12211 BDA 22316 b
2178	2178	1 (M) of paragraph (2) of this subsection shall be
2179	2179	2 eligible for the deduction provided under this
2180	2180	3 subparagraph (M-1). The subtraction modification
2181	2181	4 available to taxpayers in any year under this
2182	2182	5 subsection shall be that portion of the total interest
2183	2183	6 paid by the borrower with respect to such loan
2184	2184	7 attributable to the eligible property as calculated
2185	2185	8 under the previous sentence;
2186	2186	9 (N) Two times any contribution made during the
2187	2187	10 taxable year to a designated zone organization to the
2188	2188	11 extent that the contribution (i) qualifies as a
2189	2189	12 charitable contribution under subsection (c) of
2190	2190	13 Section 170 of the Internal Revenue Code and (ii)
2191	2191	14 must, by its terms, be used for a project approved by
2192	2192	15 the Department of Commerce and Economic Opportunity
2193	2193	16 under Section 11 of the Illinois Enterprise Zone Act
2194	2194	17 or under Section 10-10 of the River Edge Redevelopment
2195	2195	18 Zone Act. This subparagraph (N) is exempt from the
2196	2196	19 provisions of Section 250;
2197	2197	20 (O) An amount equal to: (i) 85% for taxable years
2198	2198	21 ending on or before December 31, 1992, or, a
2199	2199	22 percentage equal to the percentage allowable under
2200	2200	23 Section 243(a)(1) of the Internal Revenue Code of 1986
2201	2201	24 for taxable years ending after December 31, 1992, of
2202	2202	25 the amount by which dividends included in taxable
2203	2203	26 income and received from a corporation that is not
2204	2204
2205	2205
2206	2206
2207	2207
2208	2208
2209	2209	SB2279 - 61 - LRB104 12211 BDA 22316 b
2210	2210
2211	2211
2212	2212	SB2279- 62 -LRB104 12211 BDA 22316 b SB2279 - 62 - LRB104 12211 BDA 22316 b
2213	2213	SB2279 - 62 - LRB104 12211 BDA 22316 b
2214	2214	1 created or organized under the laws of the United
2215	2215	2 States or any state or political subdivision thereof,
2216	2216	3 including, for taxable years ending on or after
2217	2217	4 December 31, 1988, dividends received or deemed
2218	2218	5 received or paid or deemed paid under Sections 951
2219	2219	6 through 965 of the Internal Revenue Code, exceed the
2220	2220	7 amount of the modification provided under subparagraph
2221	2221	8 (G) of paragraph (2) of this subsection (b) which is
2222	2222	9 related to such dividends, and including, for taxable
2223	2223	10 years ending on or after December 31, 2008, dividends
2224	2224	11 received from a captive real estate investment trust;
2225	2225	12 plus (ii) 100% of the amount by which dividends,
2226	2226	13 included in taxable income and received, including,
2227	2227	14 for taxable years ending on or after December 31,
2228	2228	15 1988, dividends received or deemed received or paid or
2229	2229	16 deemed paid under Sections 951 through 964 of the
2230	2230	17 Internal Revenue Code and including, for taxable years
2231	2231	18 ending on or after December 31, 2008, dividends
2232	2232	19 received from a captive real estate investment trust,
2233	2233	20 from any such corporation specified in clause (i) that
2234	2234	21 would but for the provisions of Section 1504(b)(3) of
2235	2235	22 the Internal Revenue Code be treated as a member of the
2236	2236	23 affiliated group which includes the dividend
2237	2237	24 recipient, exceed the amount of the modification
2238	2238	25 provided under subparagraph (G) of paragraph (2) of
2239	2239	26 this subsection (b) which is related to such
2240	2240
2241	2241
2242	2242
2243	2243
2244	2244
2245	2245	SB2279 - 62 - LRB104 12211 BDA 22316 b
2246	2246
2247	2247
2248	2248	SB2279- 63 -LRB104 12211 BDA 22316 b SB2279 - 63 - LRB104 12211 BDA 22316 b
2249	2249	SB2279 - 63 - LRB104 12211 BDA 22316 b
2250	2250	1 dividends. For taxable years ending on or after June
2251	2251	2 30, 2021, (i) for purposes of this subparagraph, the
2252	2252	3 term "dividend" does not include any amount treated as
2253	2253	4 a dividend under Section 1248 of the Internal Revenue
2254	2254	5 Code, and (ii) this subparagraph shall not apply to
2255	2255	6 dividends for which a deduction is allowed under
2256	2256	7 Section 245(a) of the Internal Revenue Code. This
2257	2257	8 subparagraph (O) is exempt from the provisions of
2258	2258	9 Section 250 of this Act;
2259	2259	10 (P) An amount equal to any contribution made to a
2260	2260	11 job training project established pursuant to the Tax
2261	2261	12 Increment Allocation Redevelopment Act;
2262	2262	13 (Q) An amount equal to the amount of the deduction
2263	2263	14 used to compute the federal income tax credit for
2264	2264	15 restoration of substantial amounts held under claim of
2265	2265	16 right for the taxable year pursuant to Section 1341 of
2266	2266	17 the Internal Revenue Code;
2267	2267	18 (R) On and after July 20, 1999, in the case of an
2268	2268	19 attorney-in-fact with respect to whom an interinsurer
2269	2269	20 or a reciprocal insurer has made the election under
2270	2270	21 Section 835 of the Internal Revenue Code, 26 U.S.C.
2271	2271	22 835, an amount equal to the excess, if any, of the
2272	2272	23 amounts paid or incurred by that interinsurer or
2273	2273	24 reciprocal insurer in the taxable year to the
2274	2274	25 attorney-in-fact over the deduction allowed to that
2275	2275	26 interinsurer or reciprocal insurer with respect to the
2276	2276
2277	2277
2278	2278
2279	2279
2280	2280
2281	2281	SB2279 - 63 - LRB104 12211 BDA 22316 b
2282	2282
2283	2283
2284	2284	SB2279- 64 -LRB104 12211 BDA 22316 b SB2279 - 64 - LRB104 12211 BDA 22316 b
2285	2285	SB2279 - 64 - LRB104 12211 BDA 22316 b
2286	2286	1 attorney-in-fact under Section 835(b) of the Internal
2287	2287	2 Revenue Code for the taxable year; the provisions of
2288	2288	3 this subparagraph are exempt from the provisions of
2289	2289	4 Section 250;
2290	2290	5 (S) For taxable years ending on or after December
2291	2291	6 31, 1997, in the case of a Subchapter S corporation, an
2292	2292	7 amount equal to all amounts of income allocable to a
2293	2293	8 shareholder subject to the Personal Property Tax
2294	2294	9 Replacement Income Tax imposed by subsections (c) and
2295	2295	10 (d) of Section 201 of this Act, including amounts
2296	2296	11 allocable to organizations exempt from federal income
2297	2297	12 tax by reason of Section 501(a) of the Internal
2298	2298	13 Revenue Code. This subparagraph (S) is exempt from the
2299	2299	14 provisions of Section 250;
2300	2300	15 (T) For taxable years 2001 and thereafter, for the
2301	2301	16 taxable year in which the bonus depreciation deduction
2302	2302	17 is taken on the taxpayer's federal income tax return
2303	2303	18 under subsection (k) of Section 168 of the Internal
2304	2304	19 Revenue Code and for each applicable taxable year
2305	2305	20 thereafter, an amount equal to "x", where:
2306	2306	21 (1) "y" equals the amount of the depreciation
2307	2307	22 deduction taken for the taxable year on the
2308	2308	23 taxpayer's federal income tax return on property
2309	2309	24 for which the bonus depreciation deduction was
2310	2310	25 taken in any year under subsection (k) of Section
2311	2311	26 168 of the Internal Revenue Code, but not
2312	2312
2313	2313
2314	2314
2315	2315
2316	2316
2317	2317	SB2279 - 64 - LRB104 12211 BDA 22316 b
2318	2318
2319	2319
2320	2320	SB2279- 65 -LRB104 12211 BDA 22316 b SB2279 - 65 - LRB104 12211 BDA 22316 b
2321	2321	SB2279 - 65 - LRB104 12211 BDA 22316 b
2322	2322	1 including the bonus depreciation deduction;
2323	2323	2 (2) for taxable years ending on or before
2324	2324	3 December 31, 2005, "x" equals "y" multiplied by 30
2325	2325	4 and then divided by 70 (or "y" multiplied by
2326	2326	5 0.429); and
2327	2327	6 (3) for taxable years ending after December
2328	2328	7 31, 2005:
2329	2329	8 (i) for property on which a bonus
2330	2330	9 depreciation deduction of 30% of the adjusted
2331	2331	10 basis was taken, "x" equals "y" multiplied by
2332	2332	11 30 and then divided by 70 (or "y" multiplied
2333	2333	12 by 0.429);
2334	2334	13 (ii) for property on which a bonus
2335	2335	14 depreciation deduction of 50% of the adjusted
2336	2336	15 basis was taken, "x" equals "y" multiplied by
2337	2337	16 1.0;
2338	2338	17 (iii) for property on which a bonus
2339	2339	18 depreciation deduction of 100% of the adjusted
2340	2340	19 basis was taken in a taxable year ending on or
2341	2341	20 after December 31, 2021, "x" equals the
2342	2342	21 depreciation deduction that would be allowed
2343	2343	22 on that property if the taxpayer had made the
2344	2344	23 election under Section 168(k)(7) of the
2345	2345	24 Internal Revenue Code to not claim bonus
2346	2346	25 depreciation on that property; and
2347	2347	26 (iv) for property on which a bonus
2348	2348
2349	2349
2350	2350
2351	2351
2352	2352
2353	2353	SB2279 - 65 - LRB104 12211 BDA 22316 b
2354	2354
2355	2355
2356	2356	SB2279- 66 -LRB104 12211 BDA 22316 b SB2279 - 66 - LRB104 12211 BDA 22316 b
2357	2357	SB2279 - 66 - LRB104 12211 BDA 22316 b
2358	2358	1 depreciation deduction of a percentage other
2359	2359	2 than 30%, 50% or 100% of the adjusted basis
2360	2360	3 was taken in a taxable year ending on or after
2361	2361	4 December 31, 2021, "x" equals "y" multiplied
2362	2362	5 by 100 times the percentage bonus depreciation
2363	2363	6 on the property (that is, 100(bonus%)) and
2364	2364	7 then divided by 100 times 1 minus the
2365	2365	8 percentage bonus depreciation on the property
2366	2366	9 (that is, 100(1-bonus%)).
2367	2367	10 The aggregate amount deducted under this
2368	2368	11 subparagraph in all taxable years for any one piece of
2369	2369	12 property may not exceed the amount of the bonus
2370	2370	13 depreciation deduction taken on that property on the
2371	2371	14 taxpayer's federal income tax return under subsection
2372	2372	15 (k) of Section 168 of the Internal Revenue Code. This
2373	2373	16 subparagraph (T) is exempt from the provisions of
2374	2374	17 Section 250;
2375	2375	18 (U) If the taxpayer sells, transfers, abandons, or
2376	2376	19 otherwise disposes of property for which the taxpayer
2377	2377	20 was required in any taxable year to make an addition
2378	2378	21 modification under subparagraph (E-10), then an amount
2379	2379	22 equal to that addition modification.
2380	2380	23 If the taxpayer continues to own property through
2381	2381	24 the last day of the last tax year for which a
2382	2382	25 subtraction is allowed with respect to that property
2383	2383	26 under subparagraph (T) and for which the taxpayer was
2384	2384
2385	2385
2386	2386
2387	2387
2388	2388
2389	2389	SB2279 - 66 - LRB104 12211 BDA 22316 b
2390	2390
2391	2391
2392	2392	SB2279- 67 -LRB104 12211 BDA 22316 b SB2279 - 67 - LRB104 12211 BDA 22316 b
2393	2393	SB2279 - 67 - LRB104 12211 BDA 22316 b
2394	2394	1 required in any taxable year to make an addition
2395	2395	2 modification under subparagraph (E-10), then an amount
2396	2396	3 equal to that addition modification.
2397	2397	4 The taxpayer is allowed to take the deduction
2398	2398	5 under this subparagraph only once with respect to any
2399	2399	6 one piece of property.
2400	2400	7 This subparagraph (U) is exempt from the
2401	2401	8 provisions of Section 250;
2402	2402	9 (V) The amount of: (i) any interest income (net of
2403	2403	10 the deductions allocable thereto) taken into account
2404	2404	11 for the taxable year with respect to a transaction
2405	2405	12 with a taxpayer that is required to make an addition
2406	2406	13 modification with respect to such transaction under
2407	2407	14 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
2408	2408	15 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
2409	2409	16 the amount of such addition modification, (ii) any
2410	2410	17 income from intangible property (net of the deductions
2411	2411	18 allocable thereto) taken into account for the taxable
2412	2412	19 year with respect to a transaction with a taxpayer
2413	2413	20 that is required to make an addition modification with
2414	2414	21 respect to such transaction under Section
2415	2415	22 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
2416	2416	23 203(d)(2)(D-8), but not to exceed the amount of such
2417	2417	24 addition modification, and (iii) any insurance premium
2418	2418	25 income (net of deductions allocable thereto) taken
2419	2419	26 into account for the taxable year with respect to a
2420	2420
2421	2421
2422	2422
2423	2423
2424	2424
2425	2425	SB2279 - 67 - LRB104 12211 BDA 22316 b
2426	2426
2427	2427
2428	2428	SB2279- 68 -LRB104 12211 BDA 22316 b SB2279 - 68 - LRB104 12211 BDA 22316 b
2429	2429	SB2279 - 68 - LRB104 12211 BDA 22316 b
2430	2430	1 transaction with a taxpayer that is required to make
2431	2431	2 an addition modification with respect to such
2432	2432	3 transaction under Section 203(a)(2)(D-19), Section
2433	2433	4 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
2434	2434	5 203(d)(2)(D-9), but not to exceed the amount of that
2435	2435	6 addition modification. This subparagraph (V) is exempt
2436	2436	7 from the provisions of Section 250;
2437	2437	8 (W) An amount equal to the interest income taken
2438	2438	9 into account for the taxable year (net of the
2439	2439	10 deductions allocable thereto) with respect to
2440	2440	11 transactions with (i) a foreign person who would be a
2441	2441	12 member of the taxpayer's unitary business group but
2442	2442	13 for the fact that the foreign person's business
2443	2443	14 activity outside the United States is 80% or more of
2444	2444	15 that person's total business activity and (ii) for
2445	2445	16 taxable years ending on or after December 31, 2008, to
2446	2446	17 a person who would be a member of the same unitary
2447	2447	18 business group but for the fact that the person is
2448	2448	19 prohibited under Section 1501(a)(27) from being
2449	2449	20 included in the unitary business group because he or
2450	2450	21 she is ordinarily required to apportion business
2451	2451	22 income under different subsections of Section 304, but
2452	2452	23 not to exceed the addition modification required to be
2453	2453	24 made for the same taxable year under Section
2454	2454	25 203(b)(2)(E-12) for interest paid, accrued, or
2455	2455	26 incurred, directly or indirectly, to the same person.
2456	2456
2457	2457
2458	2458
2459	2459
2460	2460
2461	2461	SB2279 - 68 - LRB104 12211 BDA 22316 b
2462	2462
2463	2463
2464	2464	SB2279- 69 -LRB104 12211 BDA 22316 b SB2279 - 69 - LRB104 12211 BDA 22316 b
2465	2465	SB2279 - 69 - LRB104 12211 BDA 22316 b
2466	2466	1 This subparagraph (W) is exempt from the provisions of
2467	2467	2 Section 250;
2468	2468	3 (X) An amount equal to the income from intangible
2469	2469	4 property taken into account for the taxable year (net
2470	2470	5 of the deductions allocable thereto) with respect to
2471	2471	6 transactions with (i) a foreign person who would be a
2472	2472	7 member of the taxpayer's unitary business group but
2473	2473	8 for the fact that the foreign person's business
2474	2474	9 activity outside the United States is 80% or more of
2475	2475	10 that person's total business activity and (ii) for
2476	2476	11 taxable years ending on or after December 31, 2008, to
2477	2477	12 a person who would be a member of the same unitary
2478	2478	13 business group but for the fact that the person is
2479	2479	14 prohibited under Section 1501(a)(27) from being
2480	2480	15 included in the unitary business group because he or
2481	2481	16 she is ordinarily required to apportion business
2482	2482	17 income under different subsections of Section 304, but
2483	2483	18 not to exceed the addition modification required to be
2484	2484	19 made for the same taxable year under Section
2485	2485	20 203(b)(2)(E-13) for intangible expenses and costs
2486	2486	21 paid, accrued, or incurred, directly or indirectly, to
2487	2487	22 the same foreign person. This subparagraph (X) is
2488	2488	23 exempt from the provisions of Section 250;
2489	2489	24 (Y) For taxable years ending on or after December
2490	2490	25 31, 2011, in the case of a taxpayer who was required to
2491	2491	26 add back any insurance premiums under Section
2492	2492
2493	2493
2494	2494
2495	2495
2496	2496
2497	2497	SB2279 - 69 - LRB104 12211 BDA 22316 b
2498	2498
2499	2499
2500	2500	SB2279- 70 -LRB104 12211 BDA 22316 b SB2279 - 70 - LRB104 12211 BDA 22316 b
2501	2501	SB2279 - 70 - LRB104 12211 BDA 22316 b
2502	2502	1 203(b)(2)(E-14), such taxpayer may elect to subtract
2503	2503	2 that part of a reimbursement received from the
2504	2504	3 insurance company equal to the amount of the expense
2505	2505	4 or loss (including expenses incurred by the insurance
2506	2506	5 company) that would have been taken into account as a
2507	2507	6 deduction for federal income tax purposes if the
2508	2508	7 expense or loss had been uninsured. If a taxpayer
2509	2509	8 makes the election provided for by this subparagraph
2510	2510	9 (Y), the insurer to which the premiums were paid must
2511	2511	10 add back to income the amount subtracted by the
2512	2512	11 taxpayer pursuant to this subparagraph (Y). This
2513	2513	12 subparagraph (Y) is exempt from the provisions of
2514	2514	13 Section 250;
2515	2515	14 (Z) The difference between the nondeductible
2516	2516	15 controlled foreign corporation dividends under Section
2517	2517	16 965(e)(3) of the Internal Revenue Code over the
2518	2518	17 taxable income of the taxpayer, computed without
2519	2519	18 regard to Section 965(e)(2)(A) of the Internal Revenue
2520	2520	19 Code, and without regard to any net operating loss
2521	2521	20 deduction. This subparagraph (Z) is exempt from the
2522	2522	21 provisions of Section 250; and
2523	2523	22 (AA) For taxable years beginning on or after
2524	2524	23 January 1, 2023, for any cannabis establishment
2525	2525	24 operating in this State and licensed under the
2526	2526	25 Cannabis Regulation and Tax Act or any cannabis
2527	2527	26 cultivation center or medical cannabis dispensing
2528	2528
2529	2529
2530	2530
2531	2531
2532	2532
2533	2533	SB2279 - 70 - LRB104 12211 BDA 22316 b
2534	2534
2535	2535
2536	2536	SB2279- 71 -LRB104 12211 BDA 22316 b SB2279 - 71 - LRB104 12211 BDA 22316 b
2537	2537	SB2279 - 71 - LRB104 12211 BDA 22316 b
2538	2538	1 organization operating in this State and licensed
2539	2539	2 under the Compassionate Use of Medical Cannabis
2540	2540	3 Program Act, an amount equal to the deductions that
2541	2541	4 were disallowed under Section 280E of the Internal
2542	2542	5 Revenue Code for the taxable year and that would not be
2543	2543	6 added back under this subsection. The provisions of
2544	2544	7 this subparagraph (AA) are exempt from the provisions
2545	2545	8 of Section 250.
2546	2546	9 (3) Special rule. For purposes of paragraph (2)(A),
2547	2547	10 "gross income" in the case of a life insurance company,
2548	2548	11 for tax years ending on and after December 31, 1994, and
2549	2549	12 prior to December 31, 2011, shall mean the gross
2550	2550	13 investment income for the taxable year and, for tax years
2551	2551	14 ending on or after December 31, 2011, shall mean all
2552	2552	15 amounts included in life insurance gross income under
2553	2553	16 Section 803(a)(3) of the Internal Revenue Code.
2554	2554	17 (c) Trusts and estates.
2555	2555	18 (1) In general. In the case of a trust or estate, base
2556	2556	19 income means an amount equal to the taxpayer's taxable
2557	2557	20 income for the taxable year as modified by paragraph (2).
2558	2558	21 (2) Modifications. Subject to the provisions of
2559	2559	22 paragraph (3), the taxable income referred to in paragraph
2560	2560	23 (1) shall be modified by adding thereto the sum of the
2561	2561	24 following amounts:
2562	2562	25 (A) An amount equal to all amounts paid or accrued
2563	2563
2564	2564
2565	2565
2566	2566
2567	2567
2568	2568	SB2279 - 71 - LRB104 12211 BDA 22316 b
2569	2569
2570	2570
2571	2571	SB2279- 72 -LRB104 12211 BDA 22316 b SB2279 - 72 - LRB104 12211 BDA 22316 b
2572	2572	SB2279 - 72 - LRB104 12211 BDA 22316 b
2573	2573	1 to the taxpayer as interest or dividends during the
2574	2574	2 taxable year to the extent excluded from gross income
2575	2575	3 in the computation of taxable income;
2576	2576	4 (B) In the case of (i) an estate, $600; (ii) a
2577	2577	5 trust which, under its governing instrument, is
2578	2578	6 required to distribute all of its income currently,
2579	2579	7 $300; and (iii) any other trust, $100, but in each such
2580	2580	8 case, only to the extent such amount was deducted in
2581	2581	9 the computation of taxable income;
2582	2582	10 (C) An amount equal to the amount of tax imposed by
2583	2583	11 this Act to the extent deducted from gross income in
2584	2584	12 the computation of taxable income for the taxable
2585	2585	13 year;
2586	2586	14 (D) The amount of any net operating loss deduction
2587	2587	15 taken in arriving at taxable income, other than a net
2588	2588	16 operating loss carried forward from a taxable year
2589	2589	17 ending prior to December 31, 1986;
2590	2590	18 (E) For taxable years in which a net operating
2591	2591	19 loss carryback or carryforward from a taxable year
2592	2592	20 ending prior to December 31, 1986 is an element of
2593	2593	21 taxable income under paragraph (1) of subsection (e)
2594	2594	22 or subparagraph (E) of paragraph (2) of subsection
2595	2595	23 (e), the amount by which addition modifications other
2596	2596	24 than those provided by this subparagraph (E) exceeded
2597	2597	25 subtraction modifications in such taxable year, with
2598	2598	26 the following limitations applied in the order that
2599	2599
2600	2600
2601	2601
2602	2602
2603	2603
2604	2604	SB2279 - 72 - LRB104 12211 BDA 22316 b
2605	2605
2606	2606
2607	2607	SB2279- 73 -LRB104 12211 BDA 22316 b SB2279 - 73 - LRB104 12211 BDA 22316 b
2608	2608	SB2279 - 73 - LRB104 12211 BDA 22316 b
2609	2609	1 they are listed:
2610	2610	2 (i) the addition modification relating to the
2611	2611	3 net operating loss carried back or forward to the
2612	2612	4 taxable year from any taxable year ending prior to
2613	2613	5 December 31, 1986 shall be reduced by the amount
2614	2614	6 of addition modification under this subparagraph
2615	2615	7 (E) which related to that net operating loss and
2616	2616	8 which was taken into account in calculating the
2617	2617	9 base income of an earlier taxable year, and
2618	2618	10 (ii) the addition modification relating to the
2619	2619	11 net operating loss carried back or forward to the
2620	2620	12 taxable year from any taxable year ending prior to
2621	2621	13 December 31, 1986 shall not exceed the amount of
2622	2622	14 such carryback or carryforward;
2623	2623	15 For taxable years in which there is a net
2624	2624	16 operating loss carryback or carryforward from more
2625	2625	17 than one other taxable year ending prior to December
2626	2626	18 31, 1986, the addition modification provided in this
2627	2627	19 subparagraph (E) shall be the sum of the amounts
2628	2628	20 computed independently under the preceding provisions
2629	2629	21 of this subparagraph (E) for each such taxable year;
2630	2630	22 (F) For taxable years ending on or after January
2631	2631	23 1, 1989, an amount equal to the tax deducted pursuant
2632	2632	24 to Section 164 of the Internal Revenue Code if the
2633	2633	25 trust or estate is claiming the same tax for purposes
2634	2634	26 of the Illinois foreign tax credit under Section 601
2635	2635
2636	2636
2637	2637
2638	2638
2639	2639
2640	2640	SB2279 - 73 - LRB104 12211 BDA 22316 b
2641	2641
2642	2642
2643	2643	SB2279- 74 -LRB104 12211 BDA 22316 b SB2279 - 74 - LRB104 12211 BDA 22316 b
2644	2644	SB2279 - 74 - LRB104 12211 BDA 22316 b
2645	2645	1 of this Act;
2646	2646	2 (G) An amount equal to the amount of the capital
2647	2647	3 gain deduction allowable under the Internal Revenue
2648	2648	4 Code, to the extent deducted from gross income in the
2649	2649	5 computation of taxable income;
2650	2650	6 (G-5) For taxable years ending after December 31,
2651	2651	7 1997, an amount equal to any eligible remediation
2652	2652	8 costs that the trust or estate deducted in computing
2653	2653	9 adjusted gross income and for which the trust or
2654	2654	10 estate claims a credit under subsection (l) of Section
2655	2655	11 201;
2656	2656	12 (G-10) For taxable years 2001 and thereafter, an
2657	2657	13 amount equal to the bonus depreciation deduction taken
2658	2658	14 on the taxpayer's federal income tax return for the
2659	2659	15 taxable year under subsection (k) of Section 168 of
2660	2660	16 the Internal Revenue Code; and
2661	2661	17 (G-11) If the taxpayer sells, transfers, abandons,
2662	2662	18 or otherwise disposes of property for which the
2663	2663	19 taxpayer was required in any taxable year to make an
2664	2664	20 addition modification under subparagraph (G-10), then
2665	2665	21 an amount equal to the aggregate amount of the
2666	2666	22 deductions taken in all taxable years under
2667	2667	23 subparagraph (R) with respect to that property.
2668	2668	24 If the taxpayer continues to own property through
2669	2669	25 the last day of the last tax year for which a
2670	2670	26 subtraction is allowed with respect to that property
2671	2671
2672	2672
2673	2673
2674	2674
2675	2675
2676	2676	SB2279 - 74 - LRB104 12211 BDA 22316 b
2677	2677
2678	2678
2679	2679	SB2279- 75 -LRB104 12211 BDA 22316 b SB2279 - 75 - LRB104 12211 BDA 22316 b
2680	2680	SB2279 - 75 - LRB104 12211 BDA 22316 b
2681	2681	1 under subparagraph (R) and for which the taxpayer was
2682	2682	2 allowed in any taxable year to make a subtraction
2683	2683	3 modification under subparagraph (R), then an amount
2684	2684	4 equal to that subtraction modification.
2685	2685	5 The taxpayer is required to make the addition
2686	2686	6 modification under this subparagraph only once with
2687	2687	7 respect to any one piece of property;
2688	2688	8 (G-12) An amount equal to the amount otherwise
2689	2689	9 allowed as a deduction in computing base income for
2690	2690	10 interest paid, accrued, or incurred, directly or
2691	2691	11 indirectly, (i) for taxable years ending on or after
2692	2692	12 December 31, 2004, to a foreign person who would be a
2693	2693	13 member of the same unitary business group but for the
2694	2694	14 fact that the foreign person's business activity
2695	2695	15 outside the United States is 80% or more of the foreign
2696	2696	16 person's total business activity and (ii) for taxable
2697	2697	17 years ending on or after December 31, 2008, to a person
2698	2698	18 who would be a member of the same unitary business
2699	2699	19 group but for the fact that the person is prohibited
2700	2700	20 under Section 1501(a)(27) from being included in the
2701	2701	21 unitary business group because he or she is ordinarily
2702	2702	22 required to apportion business income under different
2703	2703	23 subsections of Section 304. The addition modification
2704	2704	24 required by this subparagraph shall be reduced to the
2705	2705	25 extent that dividends were included in base income of
2706	2706	26 the unitary group for the same taxable year and
2707	2707
2708	2708
2709	2709
2710	2710
2711	2711
2712	2712	SB2279 - 75 - LRB104 12211 BDA 22316 b
2713	2713
2714	2714
2715	2715	SB2279- 76 -LRB104 12211 BDA 22316 b SB2279 - 76 - LRB104 12211 BDA 22316 b
2716	2716	SB2279 - 76 - LRB104 12211 BDA 22316 b
2717	2717	1 received by the taxpayer or by a member of the
2718	2718	2 taxpayer's unitary business group (including amounts
2719	2719	3 included in gross income pursuant to Sections 951
2720	2720	4 through 964 of the Internal Revenue Code and amounts
2721	2721	5 included in gross income under Section 78 of the
2722	2722	6 Internal Revenue Code) with respect to the stock of
2723	2723	7 the same person to whom the interest was paid,
2724	2724	8 accrued, or incurred.
2725	2725	9 This paragraph shall not apply to the following:
2726	2726	10 (i) an item of interest paid, accrued, or
2727	2727	11 incurred, directly or indirectly, to a person who
2728	2728	12 is subject in a foreign country or state, other
2729	2729	13 than a state which requires mandatory unitary
2730	2730	14 reporting, to a tax on or measured by net income
2731	2731	15 with respect to such interest; or
2732	2732	16 (ii) an item of interest paid, accrued, or
2733	2733	17 incurred, directly or indirectly, to a person if
2734	2734	18 the taxpayer can establish, based on a
2735	2735	19 preponderance of the evidence, both of the
2736	2736	20 following:
2737	2737	21 (a) the person, during the same taxable
2738	2738	22 year, paid, accrued, or incurred, the interest
2739	2739	23 to a person that is not a related member, and
2740	2740	24 (b) the transaction giving rise to the
2741	2741	25 interest expense between the taxpayer and the
2742	2742	26 person did not have as a principal purpose the
2743	2743
2744	2744
2745	2745
2746	2746
2747	2747
2748	2748	SB2279 - 76 - LRB104 12211 BDA 22316 b
2749	2749
2750	2750
2751	2751	SB2279- 77 -LRB104 12211 BDA 22316 b SB2279 - 77 - LRB104 12211 BDA 22316 b
2752	2752	SB2279 - 77 - LRB104 12211 BDA 22316 b
2753	2753	1 avoidance of Illinois income tax, and is paid
2754	2754	2 pursuant to a contract or agreement that
2755	2755	3 reflects an arm's-length interest rate and
2756	2756	4 terms; or
2757	2757	5 (iii) the taxpayer can establish, based on
2758	2758	6 clear and convincing evidence, that the interest
2759	2759	7 paid, accrued, or incurred relates to a contract
2760	2760	8 or agreement entered into at arm's-length rates
2761	2761	9 and terms and the principal purpose for the
2762	2762	10 payment is not federal or Illinois tax avoidance;
2763	2763	11 or
2764	2764	12 (iv) an item of interest paid, accrued, or
2765	2765	13 incurred, directly or indirectly, to a person if
2766	2766	14 the taxpayer establishes by clear and convincing
2767	2767	15 evidence that the adjustments are unreasonable; or
2768	2768	16 if the taxpayer and the Director agree in writing
2769	2769	17 to the application or use of an alternative method
2770	2770	18 of apportionment under Section 304(f).
2771	2771	19 Nothing in this subsection shall preclude the
2772	2772	20 Director from making any other adjustment
2773	2773	21 otherwise allowed under Section 404 of this Act
2774	2774	22 for any tax year beginning after the effective
2775	2775	23 date of this amendment provided such adjustment is
2776	2776	24 made pursuant to regulation adopted by the
2777	2777	25 Department and such regulations provide methods
2778	2778	26 and standards by which the Department will utilize
2779	2779
2780	2780
2781	2781
2782	2782
2783	2783
2784	2784	SB2279 - 77 - LRB104 12211 BDA 22316 b
2785	2785
2786	2786
2787	2787	SB2279- 78 -LRB104 12211 BDA 22316 b SB2279 - 78 - LRB104 12211 BDA 22316 b
2788	2788	SB2279 - 78 - LRB104 12211 BDA 22316 b
2789	2789	1 its authority under Section 404 of this Act;
2790	2790	2 (G-13) An amount equal to the amount of intangible
2791	2791	3 expenses and costs otherwise allowed as a deduction in
2792	2792	4 computing base income, and that were paid, accrued, or
2793	2793	5 incurred, directly or indirectly, (i) for taxable
2794	2794	6 years ending on or after December 31, 2004, to a
2795	2795	7 foreign person who would be a member of the same
2796	2796	8 unitary business group but for the fact that the
2797	2797	9 foreign person's business activity outside the United
2798	2798	10 States is 80% or more of that person's total business
2799	2799	11 activity and (ii) for taxable years ending on or after
2800	2800	12 December 31, 2008, to a person who would be a member of
2801	2801	13 the same unitary business group but for the fact that
2802	2802	14 the person is prohibited under Section 1501(a)(27)
2803	2803	15 from being included in the unitary business group
2804	2804	16 because he or she is ordinarily required to apportion
2805	2805	17 business income under different subsections of Section
2806	2806	18 304. The addition modification required by this
2807	2807	19 subparagraph shall be reduced to the extent that
2808	2808	20 dividends were included in base income of the unitary
2809	2809	21 group for the same taxable year and received by the
2810	2810	22 taxpayer or by a member of the taxpayer's unitary
2811	2811	23 business group (including amounts included in gross
2812	2812	24 income pursuant to Sections 951 through 964 of the
2813	2813	25 Internal Revenue Code and amounts included in gross
2814	2814	26 income under Section 78 of the Internal Revenue Code)
2815	2815
2816	2816
2817	2817
2818	2818
2819	2819
2820	2820	SB2279 - 78 - LRB104 12211 BDA 22316 b
2821	2821
2822	2822
2823	2823	SB2279- 79 -LRB104 12211 BDA 22316 b SB2279 - 79 - LRB104 12211 BDA 22316 b
2824	2824	SB2279 - 79 - LRB104 12211 BDA 22316 b
2825	2825	1 with respect to the stock of the same person to whom
2826	2826	2 the intangible expenses and costs were directly or
2827	2827	3 indirectly paid, incurred, or accrued. The preceding
2828	2828	4 sentence shall not apply to the extent that the same
2829	2829	5 dividends caused a reduction to the addition
2830	2830	6 modification required under Section 203(c)(2)(G-12) of
2831	2831	7 this Act. As used in this subparagraph, the term
2832	2832	8 "intangible expenses and costs" includes: (1)
2833	2833	9 expenses, losses, and costs for or related to the
2834	2834	10 direct or indirect acquisition, use, maintenance or
2835	2835	11 management, ownership, sale, exchange, or any other
2836	2836	12 disposition of intangible property; (2) losses
2837	2837	13 incurred, directly or indirectly, from factoring
2838	2838	14 transactions or discounting transactions; (3) royalty,
2839	2839	15 patent, technical, and copyright fees; (4) licensing
2840	2840	16 fees; and (5) other similar expenses and costs. For
2841	2841	17 purposes of this subparagraph, "intangible property"
2842	2842	18 includes patents, patent applications, trade names,
2843	2843	19 trademarks, service marks, copyrights, mask works,
2844	2844	20 trade secrets, and similar types of intangible assets.
2845	2845	21 This paragraph shall not apply to the following:
2846	2846	22 (i) any item of intangible expenses or costs
2847	2847	23 paid, accrued, or incurred, directly or
2848	2848	24 indirectly, from a transaction with a person who
2849	2849	25 is subject in a foreign country or state, other
2850	2850	26 than a state which requires mandatory unitary
2851	2851
2852	2852
2853	2853
2854	2854
2855	2855
2856	2856	SB2279 - 79 - LRB104 12211 BDA 22316 b
2857	2857
2858	2858
2859	2859	SB2279- 80 -LRB104 12211 BDA 22316 b SB2279 - 80 - LRB104 12211 BDA 22316 b
2860	2860	SB2279 - 80 - LRB104 12211 BDA 22316 b
2861	2861	1 reporting, to a tax on or measured by net income
2862	2862	2 with respect to such item; or
2863	2863	3 (ii) any item of intangible expense or cost
2864	2864	4 paid, accrued, or incurred, directly or
2865	2865	5 indirectly, if the taxpayer can establish, based
2866	2866	6 on a preponderance of the evidence, both of the
2867	2867	7 following:
2868	2868	8 (a) the person during the same taxable
2869	2869	9 year paid, accrued, or incurred, the
2870	2870	10 intangible expense or cost to a person that is
2871	2871	11 not a related member, and
2872	2872	12 (b) the transaction giving rise to the
2873	2873	13 intangible expense or cost between the
2874	2874	14 taxpayer and the person did not have as a
2875	2875	15 principal purpose the avoidance of Illinois
2876	2876	16 income tax, and is paid pursuant to a contract
2877	2877	17 or agreement that reflects arm's-length terms;
2878	2878	18 or
2879	2879	19 (iii) any item of intangible expense or cost
2880	2880	20 paid, accrued, or incurred, directly or
2881	2881	21 indirectly, from a transaction with a person if
2882	2882	22 the taxpayer establishes by clear and convincing
2883	2883	23 evidence, that the adjustments are unreasonable;
2884	2884	24 or if the taxpayer and the Director agree in
2885	2885	25 writing to the application or use of an
2886	2886	26 alternative method of apportionment under Section
2887	2887
2888	2888
2889	2889
2890	2890
2891	2891
2892	2892	SB2279 - 80 - LRB104 12211 BDA 22316 b
2893	2893
2894	2894
2895	2895	SB2279- 81 -LRB104 12211 BDA 22316 b SB2279 - 81 - LRB104 12211 BDA 22316 b
2896	2896	SB2279 - 81 - LRB104 12211 BDA 22316 b
2897	2897	1 304(f);
2898	2898	2 Nothing in this subsection shall preclude the
2899	2899	3 Director from making any other adjustment
2900	2900	4 otherwise allowed under Section 404 of this Act
2901	2901	5 for any tax year beginning after the effective
2902	2902	6 date of this amendment provided such adjustment is
2903	2903	7 made pursuant to regulation adopted by the
2904	2904	8 Department and such regulations provide methods
2905	2905	9 and standards by which the Department will utilize
2906	2906	10 its authority under Section 404 of this Act;
2907	2907	11 (G-14) For taxable years ending on or after
2908	2908	12 December 31, 2008, an amount equal to the amount of
2909	2909	13 insurance premium expenses and costs otherwise allowed
2910	2910	14 as a deduction in computing base income, and that were
2911	2911	15 paid, accrued, or incurred, directly or indirectly, to
2912	2912	16 a person who would be a member of the same unitary
2913	2913	17 business group but for the fact that the person is
2914	2914	18 prohibited under Section 1501(a)(27) from being
2915	2915	19 included in the unitary business group because he or
2916	2916	20 she is ordinarily required to apportion business
2917	2917	21 income under different subsections of Section 304. The
2918	2918	22 addition modification required by this subparagraph
2919	2919	23 shall be reduced to the extent that dividends were
2920	2920	24 included in base income of the unitary group for the
2921	2921	25 same taxable year and received by the taxpayer or by a
2922	2922	26 member of the taxpayer's unitary business group
2923	2923
2924	2924
2925	2925
2926	2926
2927	2927
2928	2928	SB2279 - 81 - LRB104 12211 BDA 22316 b
2929	2929
2930	2930
2931	2931	SB2279- 82 -LRB104 12211 BDA 22316 b SB2279 - 82 - LRB104 12211 BDA 22316 b
2932	2932	SB2279 - 82 - LRB104 12211 BDA 22316 b
2933	2933	1 (including amounts included in gross income under
2934	2934	2 Sections 951 through 964 of the Internal Revenue Code
2935	2935	3 and amounts included in gross income under Section 78
2936	2936	4 of the Internal Revenue Code) with respect to the
2937	2937	5 stock of the same person to whom the premiums and costs
2938	2938	6 were directly or indirectly paid, incurred, or
2939	2939	7 accrued. The preceding sentence does not apply to the
2940	2940	8 extent that the same dividends caused a reduction to
2941	2941	9 the addition modification required under Section
2942	2942	10 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
2943	2943	11 Act;
2944	2944	12 (G-15) An amount equal to the credit allowable to
2945	2945	13 the taxpayer under Section 218(a) of this Act,
2946	2946	14 determined without regard to Section 218(c) of this
2947	2947	15 Act;
2948	2948	16 (G-16) For taxable years ending on or after
2949	2949	17 December 31, 2017, an amount equal to the deduction
2950	2950	18 allowed under Section 199 of the Internal Revenue Code
2951	2951	19 for the taxable year;
2952	2952	20 (G-17) the amount that is claimed as a federal
2953	2953	21 deduction when computing the taxpayer's federal
2954	2954	22 taxable income for the taxable year and that is
2955	2955	23 attributable to an endowment gift for which the
2956	2956	24 taxpayer receives a credit under the Illinois Gives
2957	2957	25 Tax Credit Act;
2958	2958	26 and by deducting from the total so obtained the sum of the
2959	2959
2960	2960
2961	2961
2962	2962
2963	2963
2964	2964	SB2279 - 82 - LRB104 12211 BDA 22316 b
2965	2965
2966	2966
2967	2967	SB2279- 83 -LRB104 12211 BDA 22316 b SB2279 - 83 - LRB104 12211 BDA 22316 b
2968	2968	SB2279 - 83 - LRB104 12211 BDA 22316 b
2969	2969	1 following amounts:
2970	2970	2 (H) An amount equal to all amounts included in
2971	2971	3 such total pursuant to the provisions of Sections
2972	2972	4 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2973	2973	5 of the Internal Revenue Code or included in such total
2974	2974	6 as distributions under the provisions of any
2975	2975	7 retirement or disability plan for employees of any
2976	2976	8 governmental agency or unit, or retirement payments to
2977	2977	9 retired partners, which payments are excluded in
2978	2978	10 computing net earnings from self employment by Section
2979	2979	11 1402 of the Internal Revenue Code and regulations
2980	2980	12 adopted pursuant thereto;
2981	2981	13 (I) The valuation limitation amount;
2982	2982	14 (J) An amount equal to the amount of any tax
2983	2983	15 imposed by this Act which was refunded to the taxpayer
2984	2984	16 and included in such total for the taxable year;
2985	2985	17 (K) An amount equal to all amounts included in
2986	2986	18 taxable income as modified by subparagraphs (A), (B),
2987	2987	19 (C), (D), (E), (F) and (G) which are exempt from
2988	2988	20 taxation by this State either by reason of its
2989	2989	21 statutes or Constitution or by reason of the
2990	2990	22 Constitution, treaties or statutes of the United
2991	2991	23 States; provided that, in the case of any statute of
2992	2992	24 this State that exempts income derived from bonds or
2993	2993	25 other obligations from the tax imposed under this Act,
2994	2994	26 the amount exempted shall be the interest net of bond
2995	2995
2996	2996
2997	2997
2998	2998
2999	2999
3000	3000	SB2279 - 83 - LRB104 12211 BDA 22316 b
3001	3001
3002	3002
3003	3003	SB2279- 84 -LRB104 12211 BDA 22316 b SB2279 - 84 - LRB104 12211 BDA 22316 b
3004	3004	SB2279 - 84 - LRB104 12211 BDA 22316 b
3005	3005	1 premium amortization;
3006	3006	2 (L) With the exception of any amounts subtracted
3007	3007	3 under subparagraph (K), an amount equal to the sum of
3008	3008	4 all amounts disallowed as deductions by (i) Sections
3009	3009	5 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3010	3010	6 and all amounts of expenses allocable to interest and
3011	3011	7 disallowed as deductions by Section 265(a)(1) of the
3012	3012	8 Internal Revenue Code; and (ii) for taxable years
3013	3013	9 ending on or after August 13, 1999, Sections
3014	3014	10 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3015	3015	11 Internal Revenue Code, plus, (iii) for taxable years
3016	3016	12 ending on or after December 31, 2011, Section
3017	3017	13 45G(e)(3) of the Internal Revenue Code and, for
3018	3018	14 taxable years ending on or after December 31, 2008,
3019	3019	15 any amount included in gross income under Section 87
3020	3020	16 of the Internal Revenue Code; the provisions of this
3021	3021	17 subparagraph are exempt from the provisions of Section
3022	3022	18 250;
3023	3023	19 (M) An amount equal to those dividends included in
3024	3024	20 such total which were paid by a corporation which
3025	3025	21 conducts business operations in a River Edge
3026	3026	22 Redevelopment Zone or zones created under the River
3027	3027	23 Edge Redevelopment Zone Act and conducts substantially
3028	3028	24 all of its operations in a River Edge Redevelopment
3029	3029	25 Zone or zones. This subparagraph (M) is exempt from
3030	3030	26 the provisions of Section 250;
3031	3031
3032	3032
3033	3033
3034	3034
3035	3035
3036	3036	SB2279 - 84 - LRB104 12211 BDA 22316 b
3037	3037
3038	3038
3039	3039	SB2279- 85 -LRB104 12211 BDA 22316 b SB2279 - 85 - LRB104 12211 BDA 22316 b
3040	3040	SB2279 - 85 - LRB104 12211 BDA 22316 b
3041	3041	1 (N) An amount equal to any contribution made to a
3042	3042	2 job training project established pursuant to the Tax
3043	3043	3 Increment Allocation Redevelopment Act;
3044	3044	4 (O) An amount equal to those dividends included in
3045	3045	5 such total that were paid by a corporation that
3046	3046	6 conducts business operations in a federally designated
3047	3047	7 Foreign Trade Zone or Sub-Zone and that is designated
3048	3048	8 a High Impact Business located in Illinois; provided
3049	3049	9 that dividends eligible for the deduction provided in
3050	3050	10 subparagraph (M) of paragraph (2) of this subsection
3051	3051	11 shall not be eligible for the deduction provided under
3052	3052	12 this subparagraph (O);
3053	3053	13 (P) An amount equal to the amount of the deduction
3054	3054	14 used to compute the federal income tax credit for
3055	3055	15 restoration of substantial amounts held under claim of
3056	3056	16 right for the taxable year pursuant to Section 1341 of
3057	3057	17 the Internal Revenue Code;
3058	3058	18 (Q) For taxable year 1999 and thereafter, an
3059	3059	19 amount equal to the amount of any (i) distributions,
3060	3060	20 to the extent includible in gross income for federal
3061	3061	21 income tax purposes, made to the taxpayer because of
3062	3062	22 his or her status as a victim of persecution for racial
3063	3063	23 or religious reasons by Nazi Germany or any other Axis
3064	3064	24 regime or as an heir of the victim and (ii) items of
3065	3065	25 income, to the extent includible in gross income for
3066	3066	26 federal income tax purposes, attributable to, derived
3067	3067
3068	3068
3069	3069
3070	3070
3071	3071
3072	3072	SB2279 - 85 - LRB104 12211 BDA 22316 b
3073	3073
3074	3074
3075	3075	SB2279- 86 -LRB104 12211 BDA 22316 b SB2279 - 86 - LRB104 12211 BDA 22316 b
3076	3076	SB2279 - 86 - LRB104 12211 BDA 22316 b
3077	3077	1 from or in any way related to assets stolen from,
3078	3078	2 hidden from, or otherwise lost to a victim of
3079	3079	3 persecution for racial or religious reasons by Nazi
3080	3080	4 Germany or any other Axis regime immediately prior to,
3081	3081	5 during, and immediately after World War II, including,
3082	3082	6 but not limited to, interest on the proceeds
3083	3083	7 receivable as insurance under policies issued to a
3084	3084	8 victim of persecution for racial or religious reasons
3085	3085	9 by Nazi Germany or any other Axis regime by European
3086	3086	10 insurance companies immediately prior to and during
3087	3087	11 World War II; provided, however, this subtraction from
3088	3088	12 federal adjusted gross income does not apply to assets
3089	3089	13 acquired with such assets or with the proceeds from
3090	3090	14 the sale of such assets; provided, further, this
3091	3091	15 paragraph shall only apply to a taxpayer who was the
3092	3092	16 first recipient of such assets after their recovery
3093	3093	17 and who is a victim of persecution for racial or
3094	3094	18 religious reasons by Nazi Germany or any other Axis
3095	3095	19 regime or as an heir of the victim. The amount of and
3096	3096	20 the eligibility for any public assistance, benefit, or
3097	3097	21 similar entitlement is not affected by the inclusion
3098	3098	22 of items (i) and (ii) of this paragraph in gross income
3099	3099	23 for federal income tax purposes. This paragraph is
3100	3100	24 exempt from the provisions of Section 250;
3101	3101	25 (R) For taxable years 2001 and thereafter, for the
3102	3102	26 taxable year in which the bonus depreciation deduction
3103	3103
3104	3104
3105	3105
3106	3106
3107	3107
3108	3108	SB2279 - 86 - LRB104 12211 BDA 22316 b
3109	3109
3110	3110
3111	3111	SB2279- 87 -LRB104 12211 BDA 22316 b SB2279 - 87 - LRB104 12211 BDA 22316 b
3112	3112	SB2279 - 87 - LRB104 12211 BDA 22316 b
3113	3113	1 is taken on the taxpayer's federal income tax return
3114	3114	2 under subsection (k) of Section 168 of the Internal
3115	3115	3 Revenue Code and for each applicable taxable year
3116	3116	4 thereafter, an amount equal to "x", where:
3117	3117	5 (1) "y" equals the amount of the depreciation
3118	3118	6 deduction taken for the taxable year on the
3119	3119	7 taxpayer's federal income tax return on property
3120	3120	8 for which the bonus depreciation deduction was
3121	3121	9 taken in any year under subsection (k) of Section
3122	3122	10 168 of the Internal Revenue Code, but not
3123	3123	11 including the bonus depreciation deduction;
3124	3124	12 (2) for taxable years ending on or before
3125	3125	13 December 31, 2005, "x" equals "y" multiplied by 30
3126	3126	14 and then divided by 70 (or "y" multiplied by
3127	3127	15 0.429); and
3128	3128	16 (3) for taxable years ending after December
3129	3129	17 31, 2005:
3130	3130	18 (i) for property on which a bonus
3131	3131	19 depreciation deduction of 30% of the adjusted
3132	3132	20 basis was taken, "x" equals "y" multiplied by
3133	3133	21 30 and then divided by 70 (or "y" multiplied
3134	3134	22 by 0.429);
3135	3135	23 (ii) for property on which a bonus
3136	3136	24 depreciation deduction of 50% of the adjusted
3137	3137	25 basis was taken, "x" equals "y" multiplied by
3138	3138	26 1.0;
3139	3139
3140	3140
3141	3141
3142	3142
3143	3143
3144	3144	SB2279 - 87 - LRB104 12211 BDA 22316 b
3145	3145
3146	3146
3147	3147	SB2279- 88 -LRB104 12211 BDA 22316 b SB2279 - 88 - LRB104 12211 BDA 22316 b
3148	3148	SB2279 - 88 - LRB104 12211 BDA 22316 b
3149	3149	1 (iii) for property on which a bonus
3150	3150	2 depreciation deduction of 100% of the adjusted
3151	3151	3 basis was taken in a taxable year ending on or
3152	3152	4 after December 31, 2021, "x" equals the
3153	3153	5 depreciation deduction that would be allowed
3154	3154	6 on that property if the taxpayer had made the
3155	3155	7 election under Section 168(k)(7) of the
3156	3156	8 Internal Revenue Code to not claim bonus
3157	3157	9 depreciation on that property; and
3158	3158	10 (iv) for property on which a bonus
3159	3159	11 depreciation deduction of a percentage other
3160	3160	12 than 30%, 50% or 100% of the adjusted basis
3161	3161	13 was taken in a taxable year ending on or after
3162	3162	14 December 31, 2021, "x" equals "y" multiplied
3163	3163	15 by 100 times the percentage bonus depreciation
3164	3164	16 on the property (that is, 100(bonus%)) and
3165	3165	17 then divided by 100 times 1 minus the
3166	3166	18 percentage bonus depreciation on the property
3167	3167	19 (that is, 100(1-bonus%)).
3168	3168	20 The aggregate amount deducted under this
3169	3169	21 subparagraph in all taxable years for any one piece of
3170	3170	22 property may not exceed the amount of the bonus
3171	3171	23 depreciation deduction taken on that property on the
3172	3172	24 taxpayer's federal income tax return under subsection
3173	3173	25 (k) of Section 168 of the Internal Revenue Code. This
3174	3174	26 subparagraph (R) is exempt from the provisions of
3175	3175
3176	3176
3177	3177
3178	3178
3179	3179
3180	3180	SB2279 - 88 - LRB104 12211 BDA 22316 b
3181	3181
3182	3182
3183	3183	SB2279- 89 -LRB104 12211 BDA 22316 b SB2279 - 89 - LRB104 12211 BDA 22316 b
3184	3184	SB2279 - 89 - LRB104 12211 BDA 22316 b
3185	3185	1 Section 250;
3186	3186	2 (S) If the taxpayer sells, transfers, abandons, or
3187	3187	3 otherwise disposes of property for which the taxpayer
3188	3188	4 was required in any taxable year to make an addition
3189	3189	5 modification under subparagraph (G-10), then an amount
3190	3190	6 equal to that addition modification.
3191	3191	7 If the taxpayer continues to own property through
3192	3192	8 the last day of the last tax year for which a
3193	3193	9 subtraction is allowed with respect to that property
3194	3194	10 under subparagraph (R) and for which the taxpayer was
3195	3195	11 required in any taxable year to make an addition
3196	3196	12 modification under subparagraph (G-10), then an amount
3197	3197	13 equal to that addition modification.
3198	3198	14 The taxpayer is allowed to take the deduction
3199	3199	15 under this subparagraph only once with respect to any
3200	3200	16 one piece of property.
3201	3201	17 This subparagraph (S) is exempt from the
3202	3202	18 provisions of Section 250;
3203	3203	19 (T) The amount of (i) any interest income (net of
3204	3204	20 the deductions allocable thereto) taken into account
3205	3205	21 for the taxable year with respect to a transaction
3206	3206	22 with a taxpayer that is required to make an addition
3207	3207	23 modification with respect to such transaction under
3208	3208	24 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3209	3209	25 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3210	3210	26 the amount of such addition modification and (ii) any
3211	3211
3212	3212
3213	3213
3214	3214
3215	3215
3216	3216	SB2279 - 89 - LRB104 12211 BDA 22316 b
3217	3217
3218	3218
3219	3219	SB2279- 90 -LRB104 12211 BDA 22316 b SB2279 - 90 - LRB104 12211 BDA 22316 b
3220	3220	SB2279 - 90 - LRB104 12211 BDA 22316 b
3221	3221	1 income from intangible property (net of the deductions
3222	3222	2 allocable thereto) taken into account for the taxable
3223	3223	3 year with respect to a transaction with a taxpayer
3224	3224	4 that is required to make an addition modification with
3225	3225	5 respect to such transaction under Section
3226	3226	6 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3227	3227	7 203(d)(2)(D-8), but not to exceed the amount of such
3228	3228	8 addition modification. This subparagraph (T) is exempt
3229	3229	9 from the provisions of Section 250;
3230	3230	10 (U) An amount equal to the interest income taken
3231	3231	11 into account for the taxable year (net of the
3232	3232	12 deductions allocable thereto) with respect to
3233	3233	13 transactions with (i) a foreign person who would be a
3234	3234	14 member of the taxpayer's unitary business group but
3235	3235	15 for the fact the foreign person's business activity
3236	3236	16 outside the United States is 80% or more of that
3237	3237	17 person's total business activity and (ii) for taxable
3238	3238	18 years ending on or after December 31, 2008, to a person
3239	3239	19 who would be a member of the same unitary business
3240	3240	20 group but for the fact that the person is prohibited
3241	3241	21 under Section 1501(a)(27) from being included in the
3242	3242	22 unitary business group because he or she is ordinarily
3243	3243	23 required to apportion business income under different
3244	3244	24 subsections of Section 304, but not to exceed the
3245	3245	25 addition modification required to be made for the same
3246	3246	26 taxable year under Section 203(c)(2)(G-12) for
3247	3247
3248	3248
3249	3249
3250	3250
3251	3251
3252	3252	SB2279 - 90 - LRB104 12211 BDA 22316 b
3253	3253
3254	3254
3255	3255	SB2279- 91 -LRB104 12211 BDA 22316 b SB2279 - 91 - LRB104 12211 BDA 22316 b
3256	3256	SB2279 - 91 - LRB104 12211 BDA 22316 b
3257	3257	1 interest paid, accrued, or incurred, directly or
3258	3258	2 indirectly, to the same person. This subparagraph (U)
3259	3259	3 is exempt from the provisions of Section 250;
3260	3260	4 (V) An amount equal to the income from intangible
3261	3261	5 property taken into account for the taxable year (net
3262	3262	6 of the deductions allocable thereto) with respect to
3263	3263	7 transactions with (i) a foreign person who would be a
3264	3264	8 member of the taxpayer's unitary business group but
3265	3265	9 for the fact that the foreign person's business
3266	3266	10 activity outside the United States is 80% or more of
3267	3267	11 that person's total business activity and (ii) for
3268	3268	12 taxable years ending on or after December 31, 2008, to
3269	3269	13 a person who would be a member of the same unitary
3270	3270	14 business group but for the fact that the person is
3271	3271	15 prohibited under Section 1501(a)(27) from being
3272	3272	16 included in the unitary business group because he or
3273	3273	17 she is ordinarily required to apportion business
3274	3274	18 income under different subsections of Section 304, but
3275	3275	19 not to exceed the addition modification required to be
3276	3276	20 made for the same taxable year under Section
3277	3277	21 203(c)(2)(G-13) for intangible expenses and costs
3278	3278	22 paid, accrued, or incurred, directly or indirectly, to
3279	3279	23 the same foreign person. This subparagraph (V) is
3280	3280	24 exempt from the provisions of Section 250;
3281	3281	25 (W) in the case of an estate, an amount equal to
3282	3282	26 all amounts included in such total pursuant to the
3283	3283
3284	3284
3285	3285
3286	3286
3287	3287
3288	3288	SB2279 - 91 - LRB104 12211 BDA 22316 b
3289	3289
3290	3290
3291	3291	SB2279- 92 -LRB104 12211 BDA 22316 b SB2279 - 92 - LRB104 12211 BDA 22316 b
3292	3292	SB2279 - 92 - LRB104 12211 BDA 22316 b
3293	3293	1 provisions of Section 111 of the Internal Revenue Code
3294	3294	2 as a recovery of items previously deducted by the
3295	3295	3 decedent from adjusted gross income in the computation
3296	3296	4 of taxable income. This subparagraph (W) is exempt
3297	3297	5 from Section 250;
3298	3298	6 (X) an amount equal to the refund included in such
3299	3299	7 total of any tax deducted for federal income tax
3300	3300	8 purposes, to the extent that deduction was added back
3301	3301	9 under subparagraph (F). This subparagraph (X) is
3302	3302	10 exempt from the provisions of Section 250;
3303	3303	11 (Y) For taxable years ending on or after December
3304	3304	12 31, 2011, in the case of a taxpayer who was required to
3305	3305	13 add back any insurance premiums under Section
3306	3306	14 203(c)(2)(G-14), such taxpayer may elect to subtract
3307	3307	15 that part of a reimbursement received from the
3308	3308	16 insurance company equal to the amount of the expense
3309	3309	17 or loss (including expenses incurred by the insurance
3310	3310	18 company) that would have been taken into account as a
3311	3311	19 deduction for federal income tax purposes if the
3312	3312	20 expense or loss had been uninsured. If a taxpayer
3313	3313	21 makes the election provided for by this subparagraph
3314	3314	22 (Y), the insurer to which the premiums were paid must
3315	3315	23 add back to income the amount subtracted by the
3316	3316	24 taxpayer pursuant to this subparagraph (Y). This
3317	3317	25 subparagraph (Y) is exempt from the provisions of
3318	3318	26 Section 250;
3319	3319
3320	3320
3321	3321
3322	3322
3323	3323
3324	3324	SB2279 - 92 - LRB104 12211 BDA 22316 b
3325	3325
3326	3326
3327	3327	SB2279- 93 -LRB104 12211 BDA 22316 b SB2279 - 93 - LRB104 12211 BDA 22316 b
3328	3328	SB2279 - 93 - LRB104 12211 BDA 22316 b
3329	3329	1 (Z) For taxable years beginning after December 31,
3330	3330	2 2018 and before January 1, 2026, the amount of excess
3331	3331	3 business loss of the taxpayer disallowed as a
3332	3332	4 deduction by Section 461(l)(1)(B) of the Internal
3333	3333	5 Revenue Code; and
3334	3334	6 (AA) For taxable years beginning on or after
3335	3335	7 January 1, 2023, for any cannabis establishment
3336	3336	8 operating in this State and licensed under the
3337	3337	9 Cannabis Regulation and Tax Act or any cannabis
3338	3338	10 cultivation center or medical cannabis dispensing
3339	3339	11 organization operating in this State and licensed
3340	3340	12 under the Compassionate Use of Medical Cannabis
3341	3341	13 Program Act, an amount equal to the deductions that
3342	3342	14 were disallowed under Section 280E of the Internal
3343	3343	15 Revenue Code for the taxable year and that would not be
3344	3344	16 added back under this subsection. The provisions of
3345	3345	17 this subparagraph (AA) are exempt from the provisions
3346	3346	18 of Section 250.
3347	3347	19 (3) Limitation. The amount of any modification
3348	3348	20 otherwise required under this subsection shall, under
3349	3349	21 regulations prescribed by the Department, be adjusted by
3350	3350	22 any amounts included therein which were properly paid,
3351	3351	23 credited, or required to be distributed, or permanently
3352	3352	24 set aside for charitable purposes pursuant to Internal
3353	3353	25 Revenue Code Section 642(c) during the taxable year.
3354	3354
3355	3355
3356	3356
3357	3357
3358	3358
3359	3359	SB2279 - 93 - LRB104 12211 BDA 22316 b
3360	3360
3361	3361
3362	3362	SB2279- 94 -LRB104 12211 BDA 22316 b SB2279 - 94 - LRB104 12211 BDA 22316 b
3363	3363	SB2279 - 94 - LRB104 12211 BDA 22316 b
3364	3364	1 (d) Partnerships.
3365	3365	2 (1) In general. In the case of a partnership, base
3366	3366	3 income means an amount equal to the taxpayer's taxable
3367	3367	4 income for the taxable year as modified by paragraph (2).
3368	3368	5 (2) Modifications. The taxable income referred to in
3369	3369	6 paragraph (1) shall be modified by adding thereto the sum
3370	3370	7 of the following amounts:
3371	3371	8 (A) An amount equal to all amounts paid or accrued
3372	3372	9 to the taxpayer as interest or dividends during the
3373	3373	10 taxable year to the extent excluded from gross income
3374	3374	11 in the computation of taxable income;
3375	3375	12 (B) An amount equal to the amount of tax imposed by
3376	3376	13 this Act to the extent deducted from gross income for
3377	3377	14 the taxable year;
3378	3378	15 (C) The amount of deductions allowed to the
3379	3379	16 partnership pursuant to Section 707 (c) of the
3380	3380	17 Internal Revenue Code in calculating its taxable
3381	3381	18 income;
3382	3382	19 (D) An amount equal to the amount of the capital
3383	3383	20 gain deduction allowable under the Internal Revenue
3384	3384	21 Code, to the extent deducted from gross income in the
3385	3385	22 computation of taxable income;
3386	3386	23 (D-5) For taxable years 2001 and thereafter, an
3387	3387	24 amount equal to the bonus depreciation deduction taken
3388	3388	25 on the taxpayer's federal income tax return for the
3389	3389	26 taxable year under subsection (k) of Section 168 of
3390	3390
3391	3391
3392	3392
3393	3393
3394	3394
3395	3395	SB2279 - 94 - LRB104 12211 BDA 22316 b
3396	3396
3397	3397
3398	3398	SB2279- 95 -LRB104 12211 BDA 22316 b SB2279 - 95 - LRB104 12211 BDA 22316 b
3399	3399	SB2279 - 95 - LRB104 12211 BDA 22316 b
3400	3400	1 the Internal Revenue Code;
3401	3401	2 (D-6) If the taxpayer sells, transfers, abandons,
3402	3402	3 or otherwise disposes of property for which the
3403	3403	4 taxpayer was required in any taxable year to make an
3404	3404	5 addition modification under subparagraph (D-5), then
3405	3405	6 an amount equal to the aggregate amount of the
3406	3406	7 deductions taken in all taxable years under
3407	3407	8 subparagraph (O) with respect to that property.
3408	3408	9 If the taxpayer continues to own property through
3409	3409	10 the last day of the last tax year for which a
3410	3410	11 subtraction is allowed with respect to that property
3411	3411	12 under subparagraph (O) and for which the taxpayer was
3412	3412	13 allowed in any taxable year to make a subtraction
3413	3413	14 modification under subparagraph (O), then an amount
3414	3414	15 equal to that subtraction modification.
3415	3415	16 The taxpayer is required to make the addition
3416	3416	17 modification under this subparagraph only once with
3417	3417	18 respect to any one piece of property;
3418	3418	19 (D-7) An amount equal to the amount otherwise
3419	3419	20 allowed as a deduction in computing base income for
3420	3420	21 interest paid, accrued, or incurred, directly or
3421	3421	22 indirectly, (i) for taxable years ending on or after
3422	3422	23 December 31, 2004, to a foreign person who would be a
3423	3423	24 member of the same unitary business group but for the
3424	3424	25 fact the foreign person's business activity outside
3425	3425	26 the United States is 80% or more of the foreign
3426	3426
3427	3427
3428	3428
3429	3429
3430	3430
3431	3431	SB2279 - 95 - LRB104 12211 BDA 22316 b
3432	3432
3433	3433
3434	3434	SB2279- 96 -LRB104 12211 BDA 22316 b SB2279 - 96 - LRB104 12211 BDA 22316 b
3435	3435	SB2279 - 96 - LRB104 12211 BDA 22316 b
3436	3436	1 person's total business activity and (ii) for taxable
3437	3437	2 years ending on or after December 31, 2008, to a person
3438	3438	3 who would be a member of the same unitary business
3439	3439	4 group but for the fact that the person is prohibited
3440	3440	5 under Section 1501(a)(27) from being included in the
3441	3441	6 unitary business group because he or she is ordinarily
3442	3442	7 required to apportion business income under different
3443	3443	8 subsections of Section 304. The addition modification
3444	3444	9 required by this subparagraph shall be reduced to the
3445	3445	10 extent that dividends were included in base income of
3446	3446	11 the unitary group for the same taxable year and
3447	3447	12 received by the taxpayer or by a member of the
3448	3448	13 taxpayer's unitary business group (including amounts
3449	3449	14 included in gross income pursuant to Sections 951
3450	3450	15 through 964 of the Internal Revenue Code and amounts
3451	3451	16 included in gross income under Section 78 of the
3452	3452	17 Internal Revenue Code) with respect to the stock of
3453	3453	18 the same person to whom the interest was paid,
3454	3454	19 accrued, or incurred.
3455	3455	20 This paragraph shall not apply to the following:
3456	3456	21 (i) an item of interest paid, accrued, or
3457	3457	22 incurred, directly or indirectly, to a person who
3458	3458	23 is subject in a foreign country or state, other
3459	3459	24 than a state which requires mandatory unitary
3460	3460	25 reporting, to a tax on or measured by net income
3461	3461	26 with respect to such interest; or
3462	3462
3463	3463
3464	3464
3465	3465
3466	3466
3467	3467	SB2279 - 96 - LRB104 12211 BDA 22316 b
3468	3468
3469	3469
3470	3470	SB2279- 97 -LRB104 12211 BDA 22316 b SB2279 - 97 - LRB104 12211 BDA 22316 b
3471	3471	SB2279 - 97 - LRB104 12211 BDA 22316 b
3472	3472	1 (ii) an item of interest paid, accrued, or
3473	3473	2 incurred, directly or indirectly, to a person if
3474	3474	3 the taxpayer can establish, based on a
3475	3475	4 preponderance of the evidence, both of the
3476	3476	5 following:
3477	3477	6 (a) the person, during the same taxable
3478	3478	7 year, paid, accrued, or incurred, the interest
3479	3479	8 to a person that is not a related member, and
3480	3480	9 (b) the transaction giving rise to the
3481	3481	10 interest expense between the taxpayer and the
3482	3482	11 person did not have as a principal purpose the
3483	3483	12 avoidance of Illinois income tax, and is paid
3484	3484	13 pursuant to a contract or agreement that
3485	3485	14 reflects an arm's-length interest rate and
3486	3486	15 terms; or
3487	3487	16 (iii) the taxpayer can establish, based on
3488	3488	17 clear and convincing evidence, that the interest
3489	3489	18 paid, accrued, or incurred relates to a contract
3490	3490	19 or agreement entered into at arm's-length rates
3491	3491	20 and terms and the principal purpose for the
3492	3492	21 payment is not federal or Illinois tax avoidance;
3493	3493	22 or
3494	3494	23 (iv) an item of interest paid, accrued, or
3495	3495	24 incurred, directly or indirectly, to a person if
3496	3496	25 the taxpayer establishes by clear and convincing
3497	3497	26 evidence that the adjustments are unreasonable; or
3498	3498
3499	3499
3500	3500
3501	3501
3502	3502
3503	3503	SB2279 - 97 - LRB104 12211 BDA 22316 b
3504	3504
3505	3505
3506	3506	SB2279- 98 -LRB104 12211 BDA 22316 b SB2279 - 98 - LRB104 12211 BDA 22316 b
3507	3507	SB2279 - 98 - LRB104 12211 BDA 22316 b
3508	3508	1 if the taxpayer and the Director agree in writing
3509	3509	2 to the application or use of an alternative method
3510	3510	3 of apportionment under Section 304(f).
3511	3511	4 Nothing in this subsection shall preclude the
3512	3512	5 Director from making any other adjustment
3513	3513	6 otherwise allowed under Section 404 of this Act
3514	3514	7 for any tax year beginning after the effective
3515	3515	8 date of this amendment provided such adjustment is
3516	3516	9 made pursuant to regulation adopted by the
3517	3517	10 Department and such regulations provide methods
3518	3518	11 and standards by which the Department will utilize
3519	3519	12 its authority under Section 404 of this Act; and
3520	3520	13 (D-8) An amount equal to the amount of intangible
3521	3521	14 expenses and costs otherwise allowed as a deduction in
3522	3522	15 computing base income, and that were paid, accrued, or
3523	3523	16 incurred, directly or indirectly, (i) for taxable
3524	3524	17 years ending on or after December 31, 2004, to a
3525	3525	18 foreign person who would be a member of the same
3526	3526	19 unitary business group but for the fact that the
3527	3527	20 foreign person's business activity outside the United
3528	3528	21 States is 80% or more of that person's total business
3529	3529	22 activity and (ii) for taxable years ending on or after
3530	3530	23 December 31, 2008, to a person who would be a member of
3531	3531	24 the same unitary business group but for the fact that
3532	3532	25 the person is prohibited under Section 1501(a)(27)
3533	3533	26 from being included in the unitary business group
3534	3534
3535	3535
3536	3536
3537	3537
3538	3538
3539	3539	SB2279 - 98 - LRB104 12211 BDA 22316 b
3540	3540
3541	3541
3542	3542	SB2279- 99 -LRB104 12211 BDA 22316 b SB2279 - 99 - LRB104 12211 BDA 22316 b
3543	3543	SB2279 - 99 - LRB104 12211 BDA 22316 b
3544	3544	1 because he or she is ordinarily required to apportion
3545	3545	2 business income under different subsections of Section
3546	3546	3 304. The addition modification required by this
3547	3547	4 subparagraph shall be reduced to the extent that
3548	3548	5 dividends were included in base income of the unitary
3549	3549	6 group for the same taxable year and received by the
3550	3550	7 taxpayer or by a member of the taxpayer's unitary
3551	3551	8 business group (including amounts included in gross
3552	3552	9 income pursuant to Sections 951 through 964 of the
3553	3553	10 Internal Revenue Code and amounts included in gross
3554	3554	11 income under Section 78 of the Internal Revenue Code)
3555	3555	12 with respect to the stock of the same person to whom
3556	3556	13 the intangible expenses and costs were directly or
3557	3557	14 indirectly paid, incurred or accrued. The preceding
3558	3558	15 sentence shall not apply to the extent that the same
3559	3559	16 dividends caused a reduction to the addition
3560	3560	17 modification required under Section 203(d)(2)(D-7) of
3561	3561	18 this Act. As used in this subparagraph, the term
3562	3562	19 "intangible expenses and costs" includes (1) expenses,
3563	3563	20 losses, and costs for, or related to, the direct or
3564	3564	21 indirect acquisition, use, maintenance or management,
3565	3565	22 ownership, sale, exchange, or any other disposition of
3566	3566	23 intangible property; (2) losses incurred, directly or
3567	3567	24 indirectly, from factoring transactions or discounting
3568	3568	25 transactions; (3) royalty, patent, technical, and
3569	3569	26 copyright fees; (4) licensing fees; and (5) other
3570	3570
3571	3571
3572	3572
3573	3573
3574	3574
3575	3575	SB2279 - 99 - LRB104 12211 BDA 22316 b
3576	3576
3577	3577
3578	3578	SB2279- 100 -LRB104 12211 BDA 22316 b SB2279 - 100 - LRB104 12211 BDA 22316 b
3579	3579	SB2279 - 100 - LRB104 12211 BDA 22316 b
3580	3580	1 similar expenses and costs. For purposes of this
3581	3581	2 subparagraph, "intangible property" includes patents,
3582	3582	3 patent applications, trade names, trademarks, service
3583	3583	4 marks, copyrights, mask works, trade secrets, and
3584	3584	5 similar types of intangible assets;
3585	3585	6 This paragraph shall not apply to the following:
3586	3586	7 (i) any item of intangible expenses or costs
3587	3587	8 paid, accrued, or incurred, directly or
3588	3588	9 indirectly, from a transaction with a person who
3589	3589	10 is subject in a foreign country or state, other
3590	3590	11 than a state which requires mandatory unitary
3591	3591	12 reporting, to a tax on or measured by net income
3592	3592	13 with respect to such item; or
3593	3593	14 (ii) any item of intangible expense or cost
3594	3594	15 paid, accrued, or incurred, directly or
3595	3595	16 indirectly, if the taxpayer can establish, based
3596	3596	17 on a preponderance of the evidence, both of the
3597	3597	18 following:
3598	3598	19 (a) the person during the same taxable
3599	3599	20 year paid, accrued, or incurred, the
3600	3600	21 intangible expense or cost to a person that is
3601	3601	22 not a related member, and
3602	3602	23 (b) the transaction giving rise to the
3603	3603	24 intangible expense or cost between the
3604	3604	25 taxpayer and the person did not have as a
3605	3605	26 principal purpose the avoidance of Illinois
3606	3606
3607	3607
3608	3608
3609	3609
3610	3610
3611	3611	SB2279 - 100 - LRB104 12211 BDA 22316 b
3612	3612
3613	3613
3614	3614	SB2279- 101 -LRB104 12211 BDA 22316 b SB2279 - 101 - LRB104 12211 BDA 22316 b
3615	3615	SB2279 - 101 - LRB104 12211 BDA 22316 b
3616	3616	1 income tax, and is paid pursuant to a contract
3617	3617	2 or agreement that reflects arm's-length terms;
3618	3618	3 or
3619	3619	4 (iii) any item of intangible expense or cost
3620	3620	5 paid, accrued, or incurred, directly or
3621	3621	6 indirectly, from a transaction with a person if
3622	3622	7 the taxpayer establishes by clear and convincing
3623	3623	8 evidence, that the adjustments are unreasonable;
3624	3624	9 or if the taxpayer and the Director agree in
3625	3625	10 writing to the application or use of an
3626	3626	11 alternative method of apportionment under Section
3627	3627	12 304(f);
3628	3628	13 Nothing in this subsection shall preclude the
3629	3629	14 Director from making any other adjustment
3630	3630	15 otherwise allowed under Section 404 of this Act
3631	3631	16 for any tax year beginning after the effective
3632	3632	17 date of this amendment provided such adjustment is
3633	3633	18 made pursuant to regulation adopted by the
3634	3634	19 Department and such regulations provide methods
3635	3635	20 and standards by which the Department will utilize
3636	3636	21 its authority under Section 404 of this Act;
3637	3637	22 (D-9) For taxable years ending on or after
3638	3638	23 December 31, 2008, an amount equal to the amount of
3639	3639	24 insurance premium expenses and costs otherwise allowed
3640	3640	25 as a deduction in computing base income, and that were
3641	3641	26 paid, accrued, or incurred, directly or indirectly, to
3642	3642
3643	3643
3644	3644
3645	3645
3646	3646
3647	3647	SB2279 - 101 - LRB104 12211 BDA 22316 b
3648	3648
3649	3649
3650	3650	SB2279- 102 -LRB104 12211 BDA 22316 b SB2279 - 102 - LRB104 12211 BDA 22316 b
3651	3651	SB2279 - 102 - LRB104 12211 BDA 22316 b
3652	3652	1 a person who would be a member of the same unitary
3653	3653	2 business group but for the fact that the person is
3654	3654	3 prohibited under Section 1501(a)(27) from being
3655	3655	4 included in the unitary business group because he or
3656	3656	5 she is ordinarily required to apportion business
3657	3657	6 income under different subsections of Section 304. The
3658	3658	7 addition modification required by this subparagraph
3659	3659	8 shall be reduced to the extent that dividends were
3660	3660	9 included in base income of the unitary group for the
3661	3661	10 same taxable year and received by the taxpayer or by a
3662	3662	11 member of the taxpayer's unitary business group
3663	3663	12 (including amounts included in gross income under
3664	3664	13 Sections 951 through 964 of the Internal Revenue Code
3665	3665	14 and amounts included in gross income under Section 78
3666	3666	15 of the Internal Revenue Code) with respect to the
3667	3667	16 stock of the same person to whom the premiums and costs
3668	3668	17 were directly or indirectly paid, incurred, or
3669	3669	18 accrued. The preceding sentence does not apply to the
3670	3670	19 extent that the same dividends caused a reduction to
3671	3671	20 the addition modification required under Section
3672	3672	21 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
3673	3673	22 (D-10) An amount equal to the credit allowable to
3674	3674	23 the taxpayer under Section 218(a) of this Act,
3675	3675	24 determined without regard to Section 218(c) of this
3676	3676	25 Act;
3677	3677	26 (D-11) For taxable years ending on or after
3678	3678
3679	3679
3680	3680
3681	3681
3682	3682
3683	3683	SB2279 - 102 - LRB104 12211 BDA 22316 b
3684	3684
3685	3685
3686	3686	SB2279- 103 -LRB104 12211 BDA 22316 b SB2279 - 103 - LRB104 12211 BDA 22316 b
3687	3687	SB2279 - 103 - LRB104 12211 BDA 22316 b
3688	3688	1 December 31, 2017, an amount equal to the deduction
3689	3689	2 allowed under Section 199 of the Internal Revenue Code
3690	3690	3 for the taxable year;
3691	3691	4 (D-12) the amount that is claimed as a federal
3692	3692	5 deduction when computing the taxpayer's federal
3693	3693	6 taxable income for the taxable year and that is
3694	3694	7 attributable to an endowment gift for which the
3695	3695	8 taxpayer receives a credit under the Illinois Gives
3696	3696	9 Tax Credit Act;
3697	3697	10 and by deducting from the total so obtained the following
3698	3698	11 amounts:
3699	3699	12 (E) The valuation limitation amount;
3700	3700	13 (F) An amount equal to the amount of any tax
3701	3701	14 imposed by this Act which was refunded to the taxpayer
3702	3702	15 and included in such total for the taxable year;
3703	3703	16 (G) An amount equal to all amounts included in
3704	3704	17 taxable income as modified by subparagraphs (A), (B),
3705	3705	18 (C) and (D) which are exempt from taxation by this
3706	3706	19 State either by reason of its statutes or Constitution
3707	3707	20 or by reason of the Constitution, treaties or statutes
3708	3708	21 of the United States; provided that, in the case of any
3709	3709	22 statute of this State that exempts income derived from
3710	3710	23 bonds or other obligations from the tax imposed under
3711	3711	24 this Act, the amount exempted shall be the interest
3712	3712	25 net of bond premium amortization;
3713	3713	26 (H) Any income of the partnership which
3714	3714
3715	3715
3716	3716
3717	3717
3718	3718
3719	3719	SB2279 - 103 - LRB104 12211 BDA 22316 b
3720	3720
3721	3721
3722	3722	SB2279- 104 -LRB104 12211 BDA 22316 b SB2279 - 104 - LRB104 12211 BDA 22316 b
3723	3723	SB2279 - 104 - LRB104 12211 BDA 22316 b
3724	3724	1 constitutes personal service income as defined in
3725	3725	2 Section 1348(b)(1) of the Internal Revenue Code (as in
3726	3726	3 effect December 31, 1981) or a reasonable allowance
3727	3727	4 for compensation paid or accrued for services rendered
3728	3728	5 by partners to the partnership, whichever is greater;
3729	3729	6 this subparagraph (H) is exempt from the provisions of
3730	3730	7 Section 250;
3731	3731	8 (I) An amount equal to all amounts of income
3732	3732	9 distributable to an entity subject to the Personal
3733	3733	10 Property Tax Replacement Income Tax imposed by
3734	3734	11 subsections (c) and (d) of Section 201 of this Act
3735	3735	12 including amounts distributable to organizations
3736	3736	13 exempt from federal income tax by reason of Section
3737	3737	14 501(a) of the Internal Revenue Code; this subparagraph
3738	3738	15 (I) is exempt from the provisions of Section 250;
3739	3739	16 (J) With the exception of any amounts subtracted
3740	3740	17 under subparagraph (G), an amount equal to the sum of
3741	3741	18 all amounts disallowed as deductions by (i) Sections
3742	3742	19 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3743	3743	20 and all amounts of expenses allocable to interest and
3744	3744	21 disallowed as deductions by Section 265(a)(1) of the
3745	3745	22 Internal Revenue Code; and (ii) for taxable years
3746	3746	23 ending on or after August 13, 1999, Sections
3747	3747	24 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
3748	3748	25 Internal Revenue Code, plus, (iii) for taxable years
3749	3749	26 ending on or after December 31, 2011, Section
3750	3750
3751	3751
3752	3752
3753	3753
3754	3754
3755	3755	SB2279 - 104 - LRB104 12211 BDA 22316 b
3756	3756
3757	3757
3758	3758	SB2279- 105 -LRB104 12211 BDA 22316 b SB2279 - 105 - LRB104 12211 BDA 22316 b
3759	3759	SB2279 - 105 - LRB104 12211 BDA 22316 b
3760	3760	1 45G(e)(3) of the Internal Revenue Code and, for
3761	3761	2 taxable years ending on or after December 31, 2008,
3762	3762	3 any amount included in gross income under Section 87
3763	3763	4 of the Internal Revenue Code; the provisions of this
3764	3764	5 subparagraph are exempt from the provisions of Section
3765	3765	6 250;
3766	3766	7 (K) An amount equal to those dividends included in
3767	3767	8 such total which were paid by a corporation which
3768	3768	9 conducts business operations in a River Edge
3769	3769	10 Redevelopment Zone or zones created under the River
3770	3770	11 Edge Redevelopment Zone Act and conducts substantially
3771	3771	12 all of its operations from a River Edge Redevelopment
3772	3772	13 Zone or zones. This subparagraph (K) is exempt from
3773	3773	14 the provisions of Section 250;
3774	3774	15 (L) An amount equal to any contribution made to a
3775	3775	16 job training project established pursuant to the Real
3776	3776	17 Property Tax Increment Allocation Redevelopment Act;
3777	3777	18 (M) An amount equal to those dividends included in
3778	3778	19 such total that were paid by a corporation that
3779	3779	20 conducts business operations in a federally designated
3780	3780	21 Foreign Trade Zone or Sub-Zone and that is designated
3781	3781	22 a High Impact Business located in Illinois; provided
3782	3782	23 that dividends eligible for the deduction provided in
3783	3783	24 subparagraph (K) of paragraph (2) of this subsection
3784	3784	25 shall not be eligible for the deduction provided under
3785	3785	26 this subparagraph (M);
3786	3786
3787	3787
3788	3788
3789	3789
3790	3790
3791	3791	SB2279 - 105 - LRB104 12211 BDA 22316 b
3792	3792
3793	3793
3794	3794	SB2279- 106 -LRB104 12211 BDA 22316 b SB2279 - 106 - LRB104 12211 BDA 22316 b
3795	3795	SB2279 - 106 - LRB104 12211 BDA 22316 b
3796	3796	1 (N) An amount equal to the amount of the deduction
3797	3797	2 used to compute the federal income tax credit for
3798	3798	3 restoration of substantial amounts held under claim of
3799	3799	4 right for the taxable year pursuant to Section 1341 of
3800	3800	5 the Internal Revenue Code;
3801	3801	6 (O) For taxable years 2001 and thereafter, for the
3802	3802	7 taxable year in which the bonus depreciation deduction
3803	3803	8 is taken on the taxpayer's federal income tax return
3804	3804	9 under subsection (k) of Section 168 of the Internal
3805	3805	10 Revenue Code and for each applicable taxable year
3806	3806	11 thereafter, an amount equal to "x", where:
3807	3807	12 (1) "y" equals the amount of the depreciation
3808	3808	13 deduction taken for the taxable year on the
3809	3809	14 taxpayer's federal income tax return on property
3810	3810	15 for which the bonus depreciation deduction was
3811	3811	16 taken in any year under subsection (k) of Section
3812	3812	17 168 of the Internal Revenue Code, but not
3813	3813	18 including the bonus depreciation deduction;
3814	3814	19 (2) for taxable years ending on or before
3815	3815	20 December 31, 2005, "x" equals "y" multiplied by 30
3816	3816	21 and then divided by 70 (or "y" multiplied by
3817	3817	22 0.429); and
3818	3818	23 (3) for taxable years ending after December
3819	3819	24 31, 2005:
3820	3820	25 (i) for property on which a bonus
3821	3821	26 depreciation deduction of 30% of the adjusted
3822	3822
3823	3823
3824	3824
3825	3825
3826	3826
3827	3827	SB2279 - 106 - LRB104 12211 BDA 22316 b
3828	3828
3829	3829
3830	3830	SB2279- 107 -LRB104 12211 BDA 22316 b SB2279 - 107 - LRB104 12211 BDA 22316 b
3831	3831	SB2279 - 107 - LRB104 12211 BDA 22316 b
3832	3832	1 basis was taken, "x" equals "y" multiplied by
3833	3833	2 30 and then divided by 70 (or "y" multiplied
3834	3834	3 by 0.429);
3835	3835	4 (ii) for property on which a bonus
3836	3836	5 depreciation deduction of 50% of the adjusted
3837	3837	6 basis was taken, "x" equals "y" multiplied by
3838	3838	7 1.0;
3839	3839	8 (iii) for property on which a bonus
3840	3840	9 depreciation deduction of 100% of the adjusted
3841	3841	10 basis was taken in a taxable year ending on or
3842	3842	11 after December 31, 2021, "x" equals the
3843	3843	12 depreciation deduction that would be allowed
3844	3844	13 on that property if the taxpayer had made the
3845	3845	14 election under Section 168(k)(7) of the
3846	3846	15 Internal Revenue Code to not claim bonus
3847	3847	16 depreciation on that property; and
3848	3848	17 (iv) for property on which a bonus
3849	3849	18 depreciation deduction of a percentage other
3850	3850	19 than 30%, 50% or 100% of the adjusted basis
3851	3851	20 was taken in a taxable year ending on or after
3852	3852	21 December 31, 2021, "x" equals "y" multiplied
3853	3853	22 by 100 times the percentage bonus depreciation
3854	3854	23 on the property (that is, 100(bonus%)) and
3855	3855	24 then divided by 100 times 1 minus the
3856	3856	25 percentage bonus depreciation on the property
3857	3857	26 (that is, 100(1-bonus%)).
3858	3858
3859	3859
3860	3860
3861	3861
3862	3862
3863	3863	SB2279 - 107 - LRB104 12211 BDA 22316 b
3864	3864
3865	3865
3866	3866	SB2279- 108 -LRB104 12211 BDA 22316 b SB2279 - 108 - LRB104 12211 BDA 22316 b
3867	3867	SB2279 - 108 - LRB104 12211 BDA 22316 b
3868	3868	1 The aggregate amount deducted under this
3869	3869	2 subparagraph in all taxable years for any one piece of
3870	3870	3 property may not exceed the amount of the bonus
3871	3871	4 depreciation deduction taken on that property on the
3872	3872	5 taxpayer's federal income tax return under subsection
3873	3873	6 (k) of Section 168 of the Internal Revenue Code. This
3874	3874	7 subparagraph (O) is exempt from the provisions of
3875	3875	8 Section 250;
3876	3876	9 (P) If the taxpayer sells, transfers, abandons, or
3877	3877	10 otherwise disposes of property for which the taxpayer
3878	3878	11 was required in any taxable year to make an addition
3879	3879	12 modification under subparagraph (D-5), then an amount
3880	3880	13 equal to that addition modification.
3881	3881	14 If the taxpayer continues to own property through
3882	3882	15 the last day of the last tax year for which a
3883	3883	16 subtraction is allowed with respect to that property
3884	3884	17 under subparagraph (O) and for which the taxpayer was
3885	3885	18 required in any taxable year to make an addition
3886	3886	19 modification under subparagraph (D-5), then an amount
3887	3887	20 equal to that addition modification.
3888	3888	21 The taxpayer is allowed to take the deduction
3889	3889	22 under this subparagraph only once with respect to any
3890	3890	23 one piece of property.
3891	3891	24 This subparagraph (P) is exempt from the
3892	3892	25 provisions of Section 250;
3893	3893	26 (Q) The amount of (i) any interest income (net of
3894	3894
3895	3895
3896	3896
3897	3897
3898	3898
3899	3899	SB2279 - 108 - LRB104 12211 BDA 22316 b
3900	3900
3901	3901
3902	3902	SB2279- 109 -LRB104 12211 BDA 22316 b SB2279 - 109 - LRB104 12211 BDA 22316 b
3903	3903	SB2279 - 109 - LRB104 12211 BDA 22316 b
3904	3904	1 the deductions allocable thereto) taken into account
3905	3905	2 for the taxable year with respect to a transaction
3906	3906	3 with a taxpayer that is required to make an addition
3907	3907	4 modification with respect to such transaction under
3908	3908	5 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
3909	3909	6 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
3910	3910	7 the amount of such addition modification and (ii) any
3911	3911	8 income from intangible property (net of the deductions
3912	3912	9 allocable thereto) taken into account for the taxable
3913	3913	10 year with respect to a transaction with a taxpayer
3914	3914	11 that is required to make an addition modification with
3915	3915	12 respect to such transaction under Section
3916	3916	13 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
3917	3917	14 203(d)(2)(D-8), but not to exceed the amount of such
3918	3918	15 addition modification. This subparagraph (Q) is exempt
3919	3919	16 from Section 250;
3920	3920	17 (R) An amount equal to the interest income taken
3921	3921	18 into account for the taxable year (net of the
3922	3922	19 deductions allocable thereto) with respect to
3923	3923	20 transactions with (i) a foreign person who would be a
3924	3924	21 member of the taxpayer's unitary business group but
3925	3925	22 for the fact that the foreign person's business
3926	3926	23 activity outside the United States is 80% or more of
3927	3927	24 that person's total business activity and (ii) for
3928	3928	25 taxable years ending on or after December 31, 2008, to
3929	3929	26 a person who would be a member of the same unitary
3930	3930
3931	3931
3932	3932
3933	3933
3934	3934
3935	3935	SB2279 - 109 - LRB104 12211 BDA 22316 b
3936	3936
3937	3937
3938	3938	SB2279- 110 -LRB104 12211 BDA 22316 b SB2279 - 110 - LRB104 12211 BDA 22316 b
3939	3939	SB2279 - 110 - LRB104 12211 BDA 22316 b
3940	3940	1 business group but for the fact that the person is
3941	3941	2 prohibited under Section 1501(a)(27) from being
3942	3942	3 included in the unitary business group because he or
3943	3943	4 she is ordinarily required to apportion business
3944	3944	5 income under different subsections of Section 304, but
3945	3945	6 not to exceed the addition modification required to be
3946	3946	7 made for the same taxable year under Section
3947	3947	8 203(d)(2)(D-7) for interest paid, accrued, or
3948	3948	9 incurred, directly or indirectly, to the same person.
3949	3949	10 This subparagraph (R) is exempt from Section 250;
3950	3950	11 (S) An amount equal to the income from intangible
3951	3951	12 property taken into account for the taxable year (net
3952	3952	13 of the deductions allocable thereto) with respect to
3953	3953	14 transactions with (i) a foreign person who would be a
3954	3954	15 member of the taxpayer's unitary business group but
3955	3955	16 for the fact that the foreign person's business
3956	3956	17 activity outside the United States is 80% or more of
3957	3957	18 that person's total business activity and (ii) for
3958	3958	19 taxable years ending on or after December 31, 2008, to
3959	3959	20 a person who would be a member of the same unitary
3960	3960	21 business group but for the fact that the person is
3961	3961	22 prohibited under Section 1501(a)(27) from being
3962	3962	23 included in the unitary business group because he or
3963	3963	24 she is ordinarily required to apportion business
3964	3964	25 income under different subsections of Section 304, but
3965	3965	26 not to exceed the addition modification required to be
3966	3966
3967	3967
3968	3968
3969	3969
3970	3970
3971	3971	SB2279 - 110 - LRB104 12211 BDA 22316 b
3972	3972
3973	3973
3974	3974	SB2279- 111 -LRB104 12211 BDA 22316 b SB2279 - 111 - LRB104 12211 BDA 22316 b
3975	3975	SB2279 - 111 - LRB104 12211 BDA 22316 b
3976	3976	1 made for the same taxable year under Section
3977	3977	2 203(d)(2)(D-8) for intangible expenses and costs paid,
3978	3978	3 accrued, or incurred, directly or indirectly, to the
3979	3979	4 same person. This subparagraph (S) is exempt from
3980	3980	5 Section 250;
3981	3981	6 (T) For taxable years ending on or after December
3982	3982	7 31, 2011, in the case of a taxpayer who was required to
3983	3983	8 add back any insurance premiums under Section
3984	3984	9 203(d)(2)(D-9), such taxpayer may elect to subtract
3985	3985	10 that part of a reimbursement received from the
3986	3986	11 insurance company equal to the amount of the expense
3987	3987	12 or loss (including expenses incurred by the insurance
3988	3988	13 company) that would have been taken into account as a
3989	3989	14 deduction for federal income tax purposes if the
3990	3990	15 expense or loss had been uninsured. If a taxpayer
3991	3991	16 makes the election provided for by this subparagraph
3992	3992	17 (T), the insurer to which the premiums were paid must
3993	3993	18 add back to income the amount subtracted by the
3994	3994	19 taxpayer pursuant to this subparagraph (T). This
3995	3995	20 subparagraph (T) is exempt from the provisions of
3996	3996	21 Section 250; and
3997	3997	22 (U) For taxable years beginning on or after
3998	3998	23 January 1, 2023, for any cannabis establishment
3999	3999	24 operating in this State and licensed under the
4000	4000	25 Cannabis Regulation and Tax Act or any cannabis
4001	4001	26 cultivation center or medical cannabis dispensing
4002	4002
4003	4003
4004	4004
4005	4005
4006	4006
4007	4007	SB2279 - 111 - LRB104 12211 BDA 22316 b
4008	4008
4009	4009
4010	4010	SB2279- 112 -LRB104 12211 BDA 22316 b SB2279 - 112 - LRB104 12211 BDA 22316 b
4011	4011	SB2279 - 112 - LRB104 12211 BDA 22316 b
4012	4012	1 organization operating in this State and licensed
4013	4013	2 under the Compassionate Use of Medical Cannabis
4014	4014	3 Program Act, an amount equal to the deductions that
4015	4015	4 were disallowed under Section 280E of the Internal
4016	4016	5 Revenue Code for the taxable year and that would not be
4017	4017	6 added back under this subsection. The provisions of
4018	4018	7 this subparagraph (U) are exempt from the provisions
4019	4019	8 of Section 250.
4020	4020	9 (e) Gross income; adjusted gross income; taxable income.
4021	4021	10 (1) In general. Subject to the provisions of paragraph
4022	4022	11 (2) and subsection (b)(3), for purposes of this Section
4023	4023	12 and Section 803(e), a taxpayer's gross income, adjusted
4024	4024	13 gross income, or taxable income for the taxable year shall
4025	4025	14 mean the amount of gross income, adjusted gross income or
4026	4026	15 taxable income properly reportable for federal income tax
4027	4027	16 purposes for the taxable year under the provisions of the
4028	4028	17 Internal Revenue Code. Taxable income may be less than
4029	4029	18 zero. However, for taxable years ending on or after
4030	4030	19 December 31, 1986, net operating loss carryforwards from
4031	4031	20 taxable years ending prior to December 31, 1986, may not
4032	4032	21 exceed the sum of federal taxable income for the taxable
4033	4033	22 year before net operating loss deduction, plus the excess
4034	4034	23 of addition modifications over subtraction modifications
4035	4035	24 for the taxable year. For taxable years ending prior to
4036	4036	25 December 31, 1986, taxable income may never be an amount
4037	4037
4038	4038
4039	4039
4040	4040
4041	4041
4042	4042	SB2279 - 112 - LRB104 12211 BDA 22316 b
4043	4043
4044	4044
4045	4045	SB2279- 113 -LRB104 12211 BDA 22316 b SB2279 - 113 - LRB104 12211 BDA 22316 b
4046	4046	SB2279 - 113 - LRB104 12211 BDA 22316 b
4047	4047	1 in excess of the net operating loss for the taxable year as
4048	4048	2 defined in subsections (c) and (d) of Section 172 of the
4049	4049	3 Internal Revenue Code, provided that when taxable income
4050	4050	4 of a corporation (other than a Subchapter S corporation),
4051	4051	5 trust, or estate is less than zero and addition
4052	4052	6 modifications, other than those provided by subparagraph
4053	4053	7 (E) of paragraph (2) of subsection (b) for corporations or
4054	4054	8 subparagraph (E) of paragraph (2) of subsection (c) for
4055	4055	9 trusts and estates, exceed subtraction modifications, an
4056	4056	10 addition modification must be made under those
4057	4057	11 subparagraphs for any other taxable year to which the
4058	4058	12 taxable income less than zero (net operating loss) is
4059	4059	13 applied under Section 172 of the Internal Revenue Code or
4060	4060	14 under subparagraph (E) of paragraph (2) of this subsection
4061	4061	15 (e) applied in conjunction with Section 172 of the
4062	4062	16 Internal Revenue Code.
4063	4063	17 (2) Special rule. For purposes of paragraph (1) of
4064	4064	18 this subsection, the taxable income properly reportable
4065	4065	19 for federal income tax purposes shall mean:
4066	4066	20 (A) Certain life insurance companies. In the case
4067	4067	21 of a life insurance company subject to the tax imposed
4068	4068	22 by Section 801 of the Internal Revenue Code, life
4069	4069	23 insurance company taxable income, plus the amount of
4070	4070	24 distribution from pre-1984 policyholder surplus
4071	4071	25 accounts as calculated under Section 815a of the
4072	4072	26 Internal Revenue Code;
4073	4073
4074	4074
4075	4075
4076	4076
4077	4077
4078	4078	SB2279 - 113 - LRB104 12211 BDA 22316 b
4079	4079
4080	4080
4081	4081	SB2279- 114 -LRB104 12211 BDA 22316 b SB2279 - 114 - LRB104 12211 BDA 22316 b
4082	4082	SB2279 - 114 - LRB104 12211 BDA 22316 b
4083	4083	1 (B) Certain other insurance companies. In the case
4084	4084	2 of mutual insurance companies subject to the tax
4085	4085	3 imposed by Section 831 of the Internal Revenue Code,
4086	4086	4 insurance company taxable income;
4087	4087	5 (C) Regulated investment companies. In the case of
4088	4088	6 a regulated investment company subject to the tax
4089	4089	7 imposed by Section 852 of the Internal Revenue Code,
4090	4090	8 investment company taxable income;
4091	4091	9 (D) Real estate investment trusts. In the case of
4092	4092	10 a real estate investment trust subject to the tax
4093	4093	11 imposed by Section 857 of the Internal Revenue Code,
4094	4094	12 real estate investment trust taxable income;
4095	4095	13 (E) Consolidated corporations. In the case of a
4096	4096	14 corporation which is a member of an affiliated group
4097	4097	15 of corporations filing a consolidated income tax
4098	4098	16 return for the taxable year for federal income tax
4099	4099	17 purposes, taxable income determined as if such
4100	4100	18 corporation had filed a separate return for federal
4101	4101	19 income tax purposes for the taxable year and each
4102	4102	20 preceding taxable year for which it was a member of an
4103	4103	21 affiliated group. For purposes of this subparagraph,
4104	4104	22 the taxpayer's separate taxable income shall be
4105	4105	23 determined as if the election provided by Section
4106	4106	24 243(b)(2) of the Internal Revenue Code had been in
4107	4107	25 effect for all such years;
4108	4108	26 (F) Cooperatives. In the case of a cooperative
4109	4109
4110	4110
4111	4111
4112	4112
4113	4113
4114	4114	SB2279 - 114 - LRB104 12211 BDA 22316 b
4115	4115
4116	4116
4117	4117	SB2279- 115 -LRB104 12211 BDA 22316 b SB2279 - 115 - LRB104 12211 BDA 22316 b
4118	4118	SB2279 - 115 - LRB104 12211 BDA 22316 b
4119	4119	1 corporation or association, the taxable income of such
4120	4120	2 organization determined in accordance with the
4121	4121	3 provisions of Section 1381 through 1388 of the
4122	4122	4 Internal Revenue Code, but without regard to the
4123	4123	5 prohibition against offsetting losses from patronage
4124	4124	6 activities against income from nonpatronage
4125	4125	7 activities; except that a cooperative corporation or
4126	4126	8 association may make an election to follow its federal
4127	4127	9 income tax treatment of patronage losses and
4128	4128	10 nonpatronage losses. In the event such election is
4129	4129	11 made, such losses shall be computed and carried over
4130	4130	12 in a manner consistent with subsection (a) of Section
4131	4131	13 207 of this Act and apportioned by the apportionment
4132	4132	14 factor reported by the cooperative on its Illinois
4133	4133	15 income tax return filed for the taxable year in which
4134	4134	16 the losses are incurred. The election shall be
4135	4135	17 effective for all taxable years with original returns
4136	4136	18 due on or after the date of the election. In addition,
4137	4137	19 the cooperative may file an amended return or returns,
4138	4138	20 as allowed under this Act, to provide that the
4139	4139	21 election shall be effective for losses incurred or
4140	4140	22 carried forward for taxable years occurring prior to
4141	4141	23 the date of the election. Once made, the election may
4142	4142	24 only be revoked upon approval of the Director. The
4143	4143	25 Department shall adopt rules setting forth
4144	4144	26 requirements for documenting the elections and any
4145	4145
4146	4146
4147	4147
4148	4148
4149	4149
4150	4150	SB2279 - 115 - LRB104 12211 BDA 22316 b
4151	4151
4152	4152
4153	4153	SB2279- 116 -LRB104 12211 BDA 22316 b SB2279 - 116 - LRB104 12211 BDA 22316 b
4154	4154	SB2279 - 116 - LRB104 12211 BDA 22316 b
4155	4155	1 resulting Illinois net loss and the standards to be
4156	4156	2 used by the Director in evaluating requests to revoke
4157	4157	3 elections. Public Act 96-932 is declaratory of
4158	4158	4 existing law;
4159	4159	5 (G) Subchapter S corporations. In the case of: (i)
4160	4160	6 a Subchapter S corporation for which there is in
4161	4161	7 effect an election for the taxable year under Section
4162	4162	8 1362 of the Internal Revenue Code, the taxable income
4163	4163	9 of such corporation determined in accordance with
4164	4164	10 Section 1363(b) of the Internal Revenue Code, except
4165	4165	11 that taxable income shall take into account those
4166	4166	12 items which are required by Section 1363(b)(1) of the
4167	4167	13 Internal Revenue Code to be separately stated; and
4168	4168	14 (ii) a Subchapter S corporation for which there is in
4169	4169	15 effect a federal election to opt out of the provisions
4170	4170	16 of the Subchapter S Revision Act of 1982 and have
4171	4171	17 applied instead the prior federal Subchapter S rules
4172	4172	18 as in effect on July 1, 1982, the taxable income of
4173	4173	19 such corporation determined in accordance with the
4174	4174	20 federal Subchapter S rules as in effect on July 1,
4175	4175	21 1982; and
4176	4176	22 (H) Partnerships. In the case of a partnership,
4177	4177	23 taxable income determined in accordance with Section
4178	4178	24 703 of the Internal Revenue Code, except that taxable
4179	4179	25 income shall take into account those items which are
4180	4180	26 required by Section 703(a)(1) to be separately stated
4181	4181
4182	4182
4183	4183
4184	4184
4185	4185
4186	4186	SB2279 - 116 - LRB104 12211 BDA 22316 b
4187	4187
4188	4188
4189	4189	SB2279- 117 -LRB104 12211 BDA 22316 b SB2279 - 117 - LRB104 12211 BDA 22316 b
4190	4190	SB2279 - 117 - LRB104 12211 BDA 22316 b
4191	4191	1 but which would be taken into account by an individual
4192	4192	2 in calculating his taxable income.
4193	4193	3 (3) Recapture of business expenses on disposition of
4194	4194	4 asset or business. Notwithstanding any other law to the
4195	4195	5 contrary, if in prior years income from an asset or
4196	4196	6 business has been classified as business income and in a
4197	4197	7 later year is demonstrated to be non-business income, then
4198	4198	8 all expenses, without limitation, deducted in such later
4199	4199	9 year and in the 2 immediately preceding taxable years
4200	4200	10 related to that asset or business that generated the
4201	4201	11 non-business income shall be added back and recaptured as
4202	4202	12 business income in the year of the disposition of the
4203	4203	13 asset or business. Such amount shall be apportioned to
4204	4204	14 Illinois using the greater of the apportionment fraction
4205	4205	15 computed for the business under Section 304 of this Act
4206	4206	16 for the taxable year or the average of the apportionment
4207	4207	17 fractions computed for the business under Section 304 of
4208	4208	18 this Act for the taxable year and for the 2 immediately
4209	4209	19 preceding taxable years.
4210	4210	20 (f) Valuation limitation amount.
4211	4211	21 (1) In general. The valuation limitation amount
4212	4212	22 referred to in subsections (a)(2)(G), (c)(2)(I) and
4213	4213	23 (d)(2)(E) is an amount equal to:
4214	4214	24 (A) The sum of the pre-August 1, 1969 appreciation
4215	4215	25 amounts (to the extent consisting of gain reportable
4216	4216
4217	4217
4218	4218
4219	4219
4220	4220
4221	4221	SB2279 - 117 - LRB104 12211 BDA 22316 b
4222	4222
4223	4223
4224	4224	SB2279- 118 -LRB104 12211 BDA 22316 b SB2279 - 118 - LRB104 12211 BDA 22316 b
4225	4225	SB2279 - 118 - LRB104 12211 BDA 22316 b
4226	4226	1 under the provisions of Section 1245 or 1250 of the
4227	4227	2 Internal Revenue Code) for all property in respect of
4228	4228	3 which such gain was reported for the taxable year;
4229	4229	4 plus
4230	4230	5 (B) The lesser of (i) the sum of the pre-August 1,
4231	4231	6 1969 appreciation amounts (to the extent consisting of
4232	4232	7 capital gain) for all property in respect of which
4233	4233	8 such gain was reported for federal income tax purposes
4234	4234	9 for the taxable year, or (ii) the net capital gain for
4235	4235	10 the taxable year, reduced in either case by any amount
4236	4236	11 of such gain included in the amount determined under
4237	4237	12 subsection (a)(2)(F) or (c)(2)(H).
4238	4238	13 (2) Pre-August 1, 1969 appreciation amount.
4239	4239	14 (A) If the fair market value of property referred
4240	4240	15 to in paragraph (1) was readily ascertainable on
4241	4241	16 August 1, 1969, the pre-August 1, 1969 appreciation
4242	4242	17 amount for such property is the lesser of (i) the
4243	4243	18 excess of such fair market value over the taxpayer's
4244	4244	19 basis (for determining gain) for such property on that
4245	4245	20 date (determined under the Internal Revenue Code as in
4246	4246	21 effect on that date), or (ii) the total gain realized
4247	4247	22 and reportable for federal income tax purposes in
4248	4248	23 respect of the sale, exchange or other disposition of
4249	4249	24 such property.
4250	4250	25 (B) If the fair market value of property referred
4251	4251	26 to in paragraph (1) was not readily ascertainable on
4252	4252
4253	4253
4254	4254
4255	4255
4256	4256
4257	4257	SB2279 - 118 - LRB104 12211 BDA 22316 b
4258	4258
4259	4259
4260	4260	SB2279- 119 -LRB104 12211 BDA 22316 b SB2279 - 119 - LRB104 12211 BDA 22316 b
4261	4261	SB2279 - 119 - LRB104 12211 BDA 22316 b
4262	4262	1 August 1, 1969, the pre-August 1, 1969 appreciation
4263	4263	2 amount for such property is that amount which bears
4264	4264	3 the same ratio to the total gain reported in respect of
4265	4265	4 the property for federal income tax purposes for the
4266	4266	5 taxable year, as the number of full calendar months in
4267	4267	6 that part of the taxpayer's holding period for the
4268	4268	7 property ending July 31, 1969 bears to the number of
4269	4269	8 full calendar months in the taxpayer's entire holding
4270	4270	9 period for the property.
4271	4271	10 (C) The Department shall prescribe such
4272	4272	11 regulations as may be necessary to carry out the
4273	4273	12 purposes of this paragraph.
4274	4274	13 (g) Double deductions. Unless specifically provided
4275	4275	14 otherwise, nothing in this Section shall permit the same item
4276	4276	15 to be deducted more than once.
4277	4277	16 (h) Legislative intention. Except as expressly provided by
4278	4278	17 this Section there shall be no modifications or limitations on
4279	4279	18 the amounts of income, gain, loss or deduction taken into
4280	4280	19 account in determining gross income, adjusted gross income or
4281	4281	20 taxable income for federal income tax purposes for the taxable
4282	4282	21 year, or in the amount of such items entering into the
4283	4283	22 computation of base income and net income under this Act for
4284	4284	23 such taxable year, whether in respect of property values as of
4285	4285	24 August 1, 1969 or otherwise.
4286	4286
4287	4287
4288	4288
4289	4289
4290	4290
4291	4291	SB2279 - 119 - LRB104 12211 BDA 22316 b
4292	4292
4293	4293
4294	4294	SB2279- 120 -LRB104 12211 BDA 22316 b SB2279 - 120 - LRB104 12211 BDA 22316 b
4295	4295	SB2279 - 120 - LRB104 12211 BDA 22316 b
4296	4296	1 (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
4297	4297	2 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
4298	4298	3 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; 103-592,
4299	4299	4 Article 10, Section 10-900, eff. 6-7-24; 103-592, Article 170,
4300	4300	5 Section 170-90, eff. 6-7-24; 103-605, eff. 7-1-24; 103-647,
4301	4301	6 eff. 7-1-24; revised 8-20-24.)
4302	4302	SB2279- 121 -LRB104 12211 BDA 22316 b 1 INDEX 2 Statutes amended in order of appearance SB2279- 121 -LRB104 12211 BDA 22316 b SB2279 - 121 - LRB104 12211 BDA 22316 b 1 INDEX 2 Statutes amended in order of appearance
4303	4303	SB2279- 121 -LRB104 12211 BDA 22316 b SB2279 - 121 - LRB104 12211 BDA 22316 b
4304	4304	SB2279 - 121 - LRB104 12211 BDA 22316 b
4305	4305	1 INDEX
4306	4306	2 Statutes amended in order of appearance
4307	4307
4308	4308
4309	4309
4310	4310
4311	4311
4312	4312	SB2279 - 120 - LRB104 12211 BDA 22316 b
4313	4313
4314	4314
4315	4315
4316	4316	SB2279- 121 -LRB104 12211 BDA 22316 b SB2279 - 121 - LRB104 12211 BDA 22316 b
4317	4317	SB2279 - 121 - LRB104 12211 BDA 22316 b
4318	4318	1 INDEX
4319	4319	2 Statutes amended in order of appearance
4320	4320
4321	4321
4322	4322
4323	4323
4324	4324
4325	4325	SB2279 - 121 - LRB104 12211 BDA 22316 b