093_HB3208

 
                                     LRB093 11037 SJM 11720 b

 1        AN ACT concerning college savings.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  State  Treasurer  Act  is  amended  by
 5    changing Section 16.5 as follows:

 6        (15 ILCS 505/16.5)
 7        Sec. 16.5. College Savings Pool.  The State Treasurer may
 8    establish and administer a College Savings Pool to supplement
 9    and  enhance the investment opportunities otherwise available
10    to persons seeking to finance the costs of higher  education.
11    The  State  Treasurer,  in  administering the College Savings
12    Pool, may receive moneys paid into the pool by a  participant
13    and may serve as the fiscal agent of that participant for the
14    purpose of holding  and investing those moneys.
15        "Participant",  as used in this Section, means any person
16    who makes investments in the pool.  "Designated beneficiary",
17    as used in this Section, means any person on whose behalf  an
18    account  is  established  in  the  College  Savings Pool by a
19    participant.  Both in-state and out-of-state persons  may  be
20    participants  and  designated  beneficiaries  in  the College
21    Savings Pool.
22        New  accounts  in  the  College  Savings  Pool  shall  be
23    processed  through  participating   financial   institutions.
24    "Participating   financial  institution",  as  used  in  this
25    Section, means  any  financial  institution  insured  by  the
26    Federal  Deposit  Insurance  Corporation  and  lawfully doing
27    business in the  State  of  Illinois  and  any  credit  union
28    approved  by  the State Treasurer and lawfully doing business
29    in the State of Illinois that agrees to process new  accounts
30    in   the   College  Savings  Pool.   Participating  financial
31    institutions may charge a processing fee to  participants  to
 
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 1    open  an  account in the pool that shall not exceed $30 until
 2    the year 2001.  Beginning in 2001 and every year  thereafter,
 3    the  maximum  fee  limit  shall  be adjusted by the Treasurer
 4    based on the Consumer  Price  Index  for  the  North  Central
 5    Region as published by the United States Department of Labor,
 6    Bureau  of  Labor  Statistics  for  the immediately preceding
 7    calendar year.  Every contribution received  by  a  financial
 8    institution  for investment in the College Savings Pool shall
 9    be transferred from the financial institution to  a  location
10    selected  by  the  State  Treasurer  within  one business day
11    following the day that the funds must be  made  available  in
12    accordance  with  federal  law.   All communications from the
13    State  Treasurer  to   participants   shall   reference   the
14    participating  financial institution at which the account was
15    processed.
16        The Treasurer  may  invest  the  moneys  in  the  College
17    Savings  Pool  in  the  same  manner,  in  the  same types of
18    investments, and subject to the same limitations provided for
19    the investment of moneys  by  the  Illinois  State  Board  of
20    Investment.   To  enhance  the  safety  and  liquidity of the
21    College Savings Pool, to ensure the  diversification  of  the
22    investment  portfolio  of  the pool, and in an effort to keep
23    investment dollars  in  the  State  of  Illinois,  the  State
24    Treasurer  shall  make a percentage of each account available
25    for investment in participating financial institutions  doing
26    business  in  the  State.   The State Treasurer shall deposit
27    with the participating financial  institution  at  which  the
28    account  was  processed  the  following  percentage  of  each
29    account  at  a  prevailing  rate  offered by the institution,
30    provided that the  deposit  is  federally  insured  or  fully
31    collateralized  and  the institution accepts the deposit: 10%
32    of the total amount of each account for which the current age
33    of the beneficiary is less than 7 years of age,  20%  of  the
34    total  amount of each account for which the beneficiary is at
 
                            -3-      LRB093 11037 SJM 11720 b
 1    least 7 years of age and less than 12 years of age,  and  50%
 2    of the total amount of each account for which the current age
 3    of  the  beneficiary  is at least 12 years of age.  The State
 4    Treasurer shall adjust each  account  at  least  annually  to
 5    ensure  compliance  with  this  Section.  The Treasurer shall
 6    develop, publish, and implement an investment policy covering
 7    the investment of the moneys in  the  College  Savings  Pool.
 8    The  policy shall be published (i) at least once each year in
 9    at  least  one  newspaper  of  general  circulation  in  both
10    Springfield and Chicago and (ii) each year  as  part  of  the
11    audit  of  the  College  Savings Pool by the Auditor General,
12    which  shall  be  distributed  to  all   participants.    The
13    Treasurer  shall  notify all participants in writing, and the
14    Treasurer shall publish in a newspaper of general circulation
15    in  both  Chicago  and  Springfield,  any  changes   to   the
16    previously  published  investment policy at least 30 calendar
17    days before implementing the policy.  Any  investment  policy
18    adopted  by  the  Treasurer  shall be reviewed and updated if
19    necessary within 90 days following the date  that  the  State
20    Treasurer takes office.
21        Participants  shall be required to use moneys distributed
22    from the College  Savings  Pool  for  qualified  expenses  at
23    eligible  educational  institutions. "Qualified expenses", as
24    used in this Section, means the following: (i) tuition, fees,
25    and the costs of books, supplies, and equipment required  for
26    enrollment   or   attendance   at   an  eligible  educational
27    institution and (ii) certain room and board expenses incurred
28    while attending an eligible educational institution at  least
29    half-time.  "Eligible  educational  institutions", as used in
30    this Section,  means  public  and  private  colleges,  junior
31    colleges,    graduate   schools,   and   certain   vocational
32    institutions that are described in Section 481 of the  Higher
33    Education  Act of 1965 (20 U.S.C. 1088) and that are eligible
34    to  participate  in  Department  of  Education  student   aid
 
                            -4-      LRB093 11037 SJM 11720 b
 1    programs.  A  student  shall  be considered to be enrolled at
 2    least half-time if the student is enrolled for at least  half
 3    the  full-time academic work load for the course of study the
 4    student is pursuing as determined under the standards of  the
 5    institution  at which the student is enrolled.  Distributions
 6    made from the pool  for  qualified  expenses  shall  be  made
 7    directly to the eligible educational institution, directly to
 8    a  vendor,  or  in  the  form  of a check payable to both the
 9    beneficiary and the institution or vendor.  Any  moneys  that
10    are  distributed  in  any  other  manner or that are used for
11    expenses  other  than  qualified  expenses  at  an   eligible
12    educational  institution shall be subject to a penalty of 10%
13    of  the  earnings  unless  the  beneficiary   dies,   becomes
14    disabled,  or  receives  a scholarship that equals or exceeds
15    the distribution.  Penalties shall be withheld  at  the  time
16    the distribution is made.
17        The  Treasurer  shall limit the contributions that may be
18    made on behalf  of  a  designated  beneficiary  based  on  an
19    actuarial  estimate of what is required to pay tuition, fees,
20    and room and board for 5 undergraduate years at  the  highest
21    cost eligible educational institution. The contributions made
22    on  behalf  of  a beneficiary who is also a beneficiary under
23    the  Illinois  Prepaid  Tuition  Program  shall  be   further
24    restricted  to ensure that the contributions in both programs
25    combined do not exceed the limit established for the  College
26    Savings  Pool.   The  Treasurer  shall  provide  the Illinois
27    Student Assistance Commission each year at a time  designated
28    by  the  Commission,  an electronic report of all participant
29    accounts in the Treasurer's  College  Savings  Pool,  listing
30    total  contributions  and  disbursements from each individual
31    account  during  the  previous  calendar   year.    As   soon
32    thereafter   as   is   possible   following  receipt  of  the
33    Treasurer's   report,   the   Illinois   Student   Assistance
34    Commission shall, in turn,  provide  the  Treasurer  with  an
 
                            -5-      LRB093 11037 SJM 11720 b
 1    electronic   report   listing   those  College  Savings  Pool
 2    participants who also  participate  in  the  State's  prepaid
 3    tuition   program,   administered  by  the  Commission.   The
 4    Commission shall be responsible for filing any  combined  tax
 5    reports  regarding  State qualified savings programs required
 6    by the United States Internal Revenue Service.  The Treasurer
 7    shall work with the Illinois Student Assistance Commission to
 8    coordinate the marketing of the College Savings Pool and  the
 9    Illinois  Prepaid  Tuition Program when considered beneficial
10    by the Treasurer and the Director  of  the  Illinois  Student
11    Assistance  Commission.   The  Treasurer's  office  shall not
12    publicize or otherwise market the  College  Savings  Pool  or
13    accept  any  moneys  into  the  College Savings Pool prior to
14    March 1,  2000.   The  Treasurer  shall  provide  a  separate
15    accounting   for   each   designated   beneficiary   to  each
16    participant, the Illinois Student Assistance Commission,  and
17    the  participating financial institution at which the account
18    was processed.  No interest in the program may be pledged  as
19    security for a loan.
20        The assets of the College Savings Pool and its income and
21    operation  shall  be exempt from all taxation by the State of
22    Illinois and any of its subdivisions.  The  accrued  earnings
23    on  investments  in  the  Pool  once disbursed on behalf of a
24    designated beneficiary shall be  similarly  exempt  from  all
25    taxation  by  the  State of Illinois and its subdivisions, so
26    long as they are used for qualified expenses.   Contributions
27    during  the taxable year to a College Savings Pool account or
28    other qualified tuition program  under  Section  529  of  the
29    Internal Revenue Code (26 U.S.C. 529) during the taxable year
30    may  be  deducted  from  adjusted gross income as provided in
31    Section 203 of the Illinois Income Tax Act.   The  provisions
32    of this paragraph are exempt from Section 250 of the Illinois
33    Income Tax Act.
34        The  Treasurer  shall  adopt  rules  he  or she considers
 
                            -6-      LRB093 11037 SJM 11720 b
 1    necessary for the efficient  administration  of  the  College
 2    Savings  Pool.   The  rules shall provide whatever additional
 3    parameters and restrictions are necessary to ensure that  the
 4    College  Savings  Pool  meets  all  of the requirements for a
 5    qualified state tuition program  under  Section  529  of  the
 6    Internal  Revenue  Code  (26  U.S.C.  529).   The rules shall
 7    provide for the administration expenses of  the  pool  to  be
 8    paid  from  its  earnings  and for the investment earnings in
 9    excess of the expenses and all moneys collected as  penalties
10    to be credited or paid monthly to the several participants in
11    the  pool  in a manner which equitably reflects the differing
12    amounts of their respective investments in the pool  and  the
13    differing periods of time for which those amounts were in the
14    custody  of  the  pool.   Also,  the  rules shall require the
15    maintenance of records that enable the Treasurer's office  to
16    produce  a  report  for  each  account  in  the pool at least
17    annually that documents the account  balance  and  investment
18    earnings.  Notice of any proposed amendments to the rules and
19    regulations  shall  be  provided to all participants prior to
20    adoption.  Amendments to rules and  regulations  shall  apply
21    only   to  contributions  made  after  the  adoption  of  the
22    amendment.
23        Upon  creating  the  College  Savings  Pool,  the   State
24    Treasurer shall give bond with 2 or more sufficient sureties,
25    payable  to  and  for  the benefit of the participants in the
26    College  Savings  Pool,  in  the  penal  sum  of  $1,000,000,
27    conditioned upon the faithful discharge of his or her  duties
28    in relation to the College Savings Pool.
29        No  contributions  to the College Savings Pool authorized
30    by  this  Section  shall  be  considered  in  evaluating  the
31    financial situation  of  the  designated  beneficiary  or  be
32    deemed  a financial resource of or a form of financial aid or
33    assistance to the designated  beneficiary,  for  purposes  of
34    determining   eligibility  for  any  scholarship,  grant,  or
 
                            -7-      LRB093 11037 SJM 11720 b
 1    monetary  assistance  awarded   by   the   Illinois   Student
 2    Assistance  Commission, the State, or any agency thereof; nor
 3    shall contributions to the College Savings  Pool  reduce  the
 4    amount of any scholarship, grant, or monetary assistance that
 5    the  designated  beneficiary is eligible to be awarded by the
 6    Illinois Student Assistance Commission,  the  State,  or  any
 7    agency thereof in accordance with the provisions of any State
 8    law.
 9    (Source:  P.A.  91-607,  eff.  1-1-00;  91-829,  eff. 1-1-01;
10    92-16, eff.  6-28-01;  92-439,  eff.  8-17-01;  92-626,  eff.
11    7-11-02.)

12        Section  10.   The  Illinois Income Tax Act is amended by
13    changing Section 203 as follows:

14        (35 ILCS 5/203) (from Ch. 120, par. 2-203)
15        Sec. 203.  Base income defined.
16        (a)  Individuals.
17             (1)  In general.  In the case of an individual, base
18        income means an amount equal to the  taxpayer's  adjusted
19        gross   income  for  the  taxable  year  as  modified  by
20        paragraph (2).
21             (2)  Modifications.   The  adjusted   gross   income
22        referred  to in paragraph (1) shall be modified by adding
23        thereto the sum of the following amounts:
24                  (A)  An amount equal to  all  amounts  paid  or
25             accrued  to  the  taxpayer  as interest or dividends
26             during the taxable year to the extent excluded  from
27             gross  income  in  the computation of adjusted gross
28             income, except stock dividends of  qualified  public
29             utilities   described   in  Section  305(e)  of  the
30             Internal Revenue Code;
31                  (B)  An amount  equal  to  the  amount  of  tax
32             imposed  by  this  Act  to  the extent deducted from
 
                            -8-      LRB093 11037 SJM 11720 b
 1             gross income in the computation  of  adjusted  gross
 2             income for the taxable year;
 3                  (C)  An  amount  equal  to  the amount received
 4             during the taxable year as a recovery or  refund  of
 5             real   property  taxes  paid  with  respect  to  the
 6             taxpayer's principal residence under the Revenue Act
 7             of 1939 and for which  a  deduction  was  previously
 8             taken  under  subparagraph (L) of this paragraph (2)
 9             prior to July 1, 1991, the retrospective application
10             date of Article 4 of Public Act 87-17.  In the  case
11             of  multi-unit  or  multi-use  structures  and  farm
12             dwellings,  the  taxes  on  the taxpayer's principal
13             residence shall be that portion of the  total  taxes
14             for  the  entire  property  which is attributable to
15             such principal residence;
16                  (D)  An amount  equal  to  the  amount  of  the
17             capital  gain deduction allowable under the Internal
18             Revenue Code, to  the  extent  deducted  from  gross
19             income in the computation of adjusted gross income;
20                  (D-5)  An amount, to the extent not included in
21             adjusted  gross income, equal to the amount of money
22             withdrawn by the taxpayer in the taxable year from a
23             medical care savings account and the interest earned
24             on the account in the taxable year of  a  withdrawal
25             pursuant  to  subsection  (b)  of  Section 20 of the
26             Medical Care Savings Account Act or  subsection  (b)
27             of  Section  20  of the Medical Care Savings Account
28             Act of 2000;
29                  (D-10)  For taxable years ending after December
30             31,  1997,  an  amount   equal   to   any   eligible
31             remediation  costs  that  the individual deducted in
32             computing adjusted gross income and  for  which  the
33             individual  claims  a credit under subsection (l) of
34             Section 201;
 
                            -9-      LRB093 11037 SJM 11720 b
 1                  (D-15)  For taxable years 2001 and  thereafter,
 2             an  amount equal to the bonus depreciation deduction
 3             (30%  of  the  adjusted  basis  of   the   qualified
 4             property) taken on the taxpayer's federal income tax
 5             return  for the taxable year under subsection (k) of
 6             Section 168 of the Internal Revenue Code; and
 7                  (D-16)  If the taxpayer reports a capital  gain
 8             or  loss on the taxpayer's federal income tax return
 9             for the taxable year based on a sale or transfer  of
10             property  for which the taxpayer was required in any
11             taxable year to make an addition modification  under
12             subparagraph  (D-15),  then  an  amount equal to the
13             aggregate amount of  the  deductions  taken  in  all
14             taxable years under subparagraph (Z) with respect to
15             that property.;
16                  The  taxpayer  is required to make the addition
17             modification under this subparagraph only once  with
18             respect to any one piece of property;. and
19                  (D-20)   (Blank)   (D-15)  For   taxable  years
20             beginning on or after January 1, 2002, in  the  case
21             of  a  distribution from a qualified tuition program
22             under Section 529  of  the  Internal  Revenue  Code,
23             other than (i) a distribution from a College Savings
24             Pool   created  under  Section  16.5  of  the  State
25             Treasurer  Act  or  (ii)  a  distribution  from  the
26             Illinois Prepaid Tuition Trust Fund, an amount equal
27             to the  amount  excluded  from  gross  income  under
28             Section 529(c)(3)(B);
29        and  by  deducting  from the total so obtained the sum of
30        the following amounts:
31                  (E)  For taxable years ending  before  December
32             31,  2001,  any  amount  included  in  such total in
33             respect  of  any  compensation  (including  but  not
34             limited to any compensation paid  or  accrued  to  a
 
                            -10-     LRB093 11037 SJM 11720 b
 1             serviceman  while  a  prisoner  of war or missing in
 2             action) paid to a resident by  reason  of  being  on
 3             active duty in the Armed Forces of the United States
 4             and  in  respect of any compensation paid or accrued
 5             to a resident who as a governmental employee  was  a
 6             prisoner of war or missing in action, and in respect
 7             of  any  compensation  paid to a resident in 1971 or
 8             thereafter for annual training performed pursuant to
 9             Sections 502 and 503, Title 32, United  States  Code
10             as  a  member  of  the  Illinois National Guard. For
11             taxable years ending on or after December 31,  2001,
12             any  amount included in such total in respect of any
13             compensation  (including  but  not  limited  to  any
14             compensation paid or accrued to a serviceman while a
15             prisoner of war or missing  in  action)  paid  to  a
16             resident   by  reason  of  being  a  member  of  any
17             component of the Armed Forces of the  United  States
18             and  in  respect of any compensation paid or accrued
19             to a resident who as a governmental employee  was  a
20             prisoner of war or missing in action, and in respect
21             of  any  compensation  paid to a resident in 2001 or
22             thereafter by  reason  of  being  a  member  of  the
23             Illinois  National  Guard.  The  provisions  of this
24             amendatory Act of  the  92nd  General  Assembly  are
25             exempt from the provisions of Section 250;
26                  (F)  An amount equal to all amounts included in
27             such  total  pursuant  to the provisions of Sections
28             402(a), 402(c), 403(a), 403(b), 406(a), 407(a),  and
29             408  of  the  Internal  Revenue Code, or included in
30             such total as distributions under the provisions  of
31             any  retirement  or disability plan for employees of
32             any  governmental  agency  or  unit,  or  retirement
33             payments to retired  partners,  which  payments  are
34             excluded   in   computing  net  earnings  from  self
 
                            -11-     LRB093 11037 SJM 11720 b
 1             employment by Section 1402 of the  Internal  Revenue
 2             Code and regulations adopted pursuant thereto;
 3                  (G)  The valuation limitation amount;
 4                  (H)  An  amount  equal to the amount of any tax
 5             imposed by  this  Act  which  was  refunded  to  the
 6             taxpayer  and included in such total for the taxable
 7             year;
 8                  (I)  An amount equal to all amounts included in
 9             such total pursuant to the provisions of Section 111
10             of the Internal Revenue Code as a recovery of  items
11             previously  deducted  from  adjusted gross income in
12             the computation of taxable income;
13                  (J)  An  amount  equal   to   those   dividends
14             included   in  such  total  which  were  paid  by  a
15             corporation which conducts business operations in an
16             Enterprise Zone or zones created under the  Illinois
17             Enterprise  Zone Act, and conducts substantially all
18             of its operations in an Enterprise Zone or zones;
19                  (K)  An  amount  equal   to   those   dividends
20             included   in   such  total  that  were  paid  by  a
21             corporation that conducts business operations  in  a
22             federally  designated Foreign Trade Zone or Sub-Zone
23             and  that  is  designated  a  High  Impact  Business
24             located  in  Illinois;   provided   that   dividends
25             eligible  for the deduction provided in subparagraph
26             (J) of paragraph (2) of this subsection shall not be
27             eligible  for  the  deduction  provided  under  this
28             subparagraph (K);
29                  (L)  For taxable years  ending  after  December
30             31,  1983,  an  amount  equal to all social security
31             benefits and railroad retirement  benefits  included
32             in  such  total pursuant to Sections 72(r) and 86 of
33             the Internal Revenue Code;
34                  (M)  With  the   exception   of   any   amounts
 
                            -12-     LRB093 11037 SJM 11720 b
 1             subtracted  under  subparagraph (N), an amount equal
 2             to the sum of all amounts disallowed  as  deductions
 3             by  (i)  Sections  171(a)  (2),  and  265(2)  of the
 4             Internal Revenue Code of 1954, as now  or  hereafter
 5             amended,  and  all  amounts of expenses allocable to
 6             interest and  disallowed as  deductions  by  Section
 7             265(1)  of the Internal Revenue Code of 1954, as now
 8             or hereafter amended; and  (ii)  for  taxable  years
 9             ending   on  or  after  August  13,  1999,  Sections
10             171(a)(2), 265, 280C,  and  832(b)(5)(B)(i)  of  the
11             Internal   Revenue  Code;  the  provisions  of  this
12             subparagraph  are  exempt  from  the  provisions  of
13             Section 250;
14                  (N)  An amount equal to all amounts included in
15             such total which are exempt from  taxation  by  this
16             State   either   by   reason   of  its  statutes  or
17             Constitution  or  by  reason  of  the  Constitution,
18             treaties or statutes of the United States;  provided
19             that,  in the case of any statute of this State that
20             exempts  income  derived   from   bonds   or   other
21             obligations from the tax imposed under this Act, the
22             amount  exempted  shall  be the interest net of bond
23             premium amortization;
24                  (O)  An amount equal to any  contribution  made
25             to  a  job  training project established pursuant to
26             the Tax Increment Allocation Redevelopment Act;
27                  (P)  An amount  equal  to  the  amount  of  the
28             deduction  used  to  compute  the federal income tax
29             credit for restoration of substantial  amounts  held
30             under  claim  of right for the taxable year pursuant
31             to Section 1341 of  the  Internal  Revenue  Code  of
32             1986;
33                  (Q)  An amount equal to any amounts included in
34             such   total,   received   by  the  taxpayer  as  an
 
                            -13-     LRB093 11037 SJM 11720 b
 1             acceleration in the payment of  life,  endowment  or
 2             annuity  benefits  in advance of the time they would
 3             otherwise be payable as an indemnity for a  terminal
 4             illness;
 5                  (R)  An  amount  equal  to  the  amount  of any
 6             federal or State  bonus  paid  to  veterans  of  the
 7             Persian Gulf War;
 8                  (S)  An  amount,  to  the  extent  included  in
 9             adjusted  gross  income,  equal  to  the amount of a
10             contribution made in the taxable year on  behalf  of
11             the  taxpayer  to  a  medical  care  savings account
12             established under the Medical Care  Savings  Account
13             Act  or the Medical Care Savings Account Act of 2000
14             to the extent the contribution is  accepted  by  the
15             account administrator as provided in that Act;
16                  (T)  An  amount,  to  the  extent  included  in
17             adjusted  gross  income,  equal  to  the  amount  of
18             interest  earned  in  the  taxable year on a medical
19             care savings account established under  the  Medical
20             Care Savings Account Act or the Medical Care Savings
21             Account Act of 2000 on behalf of the taxpayer, other
22             than  interest  added pursuant to item (D-5) of this
23             paragraph (2);
24                  (U)  For one taxable year beginning on or after
25             January 1, 1994, an amount equal to the total amount
26             of tax imposed and paid under  subsections  (a)  and
27             (b)  of  Section  201  of  this Act on grant amounts
28             received by the  taxpayer  under  the  Nursing  Home
29             Grant  Assistance  Act during the taxpayer's taxable
30             years 1992 and 1993;
31                  (V)  Beginning with  tax  years  ending  on  or
32             after  December  31,  1995 and ending with tax years
33             ending on or before December  31,  2004,  an  amount
34             equal  to  the  amount  paid  by a taxpayer who is a
 
                            -14-     LRB093 11037 SJM 11720 b
 1             self-employed taxpayer, a partner of a  partnership,
 2             or  a  shareholder in a Subchapter S corporation for
 3             health insurance or  long-term  care  insurance  for
 4             that   taxpayer   or   that   taxpayer's  spouse  or
 5             dependents, to the extent that the amount  paid  for
 6             that  health  insurance  or long-term care insurance
 7             may be deducted under Section 213  of  the  Internal
 8             Revenue  Code  of 1986, has not been deducted on the
 9             federal income tax return of the taxpayer, and  does
10             not  exceed  the taxable income attributable to that
11             taxpayer's  income,   self-employment   income,   or
12             Subchapter  S  corporation  income;  except  that no
13             deduction shall be allowed under this  item  (V)  if
14             the  taxpayer  is  eligible  to  participate  in any
15             health insurance or long-term care insurance plan of
16             an  employer  of  the  taxpayer  or  the  taxpayer's
17             spouse.  The amount  of  the  health  insurance  and
18             long-term  care insurance subtracted under this item
19             (V) shall be determined by multiplying total  health
20             insurance and long-term care insurance premiums paid
21             by  the  taxpayer times a number that represents the
22             fractional percentage of eligible  medical  expenses
23             under  Section  213  of the Internal Revenue Code of
24             1986 not actually deducted on the taxpayer's federal
25             income tax return;
26                  (W)  For taxable years beginning  on  or  after
27             January   1,  1998,  all  amounts  included  in  the
28             taxpayer's federal gross income in the taxable  year
29             from  amounts converted from a regular IRA to a Roth
30             IRA. This paragraph is exempt from the provisions of
31             Section 250;
32                  (X)  For taxable year 1999 and  thereafter,  an
33             amount equal to the amount of any (i) distributions,
34             to the extent includible in gross income for federal
 
                            -15-     LRB093 11037 SJM 11720 b
 1             income tax purposes, made to the taxpayer because of
 2             his  or  her  status  as a victim of persecution for
 3             racial or religious reasons by Nazi Germany  or  any
 4             other  Axis  regime  or as an heir of the victim and
 5             (ii) items of income, to the  extent  includible  in
 6             gross   income  for  federal  income  tax  purposes,
 7             attributable to, derived from or in any way  related
 8             to  assets  stolen  from,  hidden from, or otherwise
 9             lost to  a  victim  of  persecution  for  racial  or
10             religious  reasons by Nazi Germany or any other Axis
11             regime immediately prior to, during, and immediately
12             after World War II, including, but not  limited  to,
13             interest  on  the  proceeds  receivable as insurance
14             under policies issued to a victim of persecution for
15             racial or religious reasons by Nazi Germany  or  any
16             other  Axis  regime  by European insurance companies
17             immediately  prior  to  and  during  World  War  II;
18             provided, however,  this  subtraction  from  federal
19             adjusted  gross  income  does  not  apply  to assets
20             acquired with such assets or with the proceeds  from
21             the  sale  of  such  assets; provided, further, this
22             paragraph shall only apply to a taxpayer who was the
23             first recipient of such assets after their  recovery
24             and  who  is  a  victim of persecution for racial or
25             religious reasons by Nazi Germany or any other  Axis
26             regime  or  as an heir of the victim.  The amount of
27             and  the  eligibility  for  any  public  assistance,
28             benefit, or similar entitlement is not  affected  by
29             the   inclusion  of  items  (i)  and  (ii)  of  this
30             paragraph in gross income  for  federal  income  tax
31             purposes.   This   paragraph   is  exempt  from  the
32             provisions of Section 250;
33                  (Y)  For taxable years beginning  on  or  after
34             January 1, 2002 and ending on or before December 31,
 
                            -16-     LRB093 11037 SJM 11720 b
 1             2002,  moneys  contributed  in the taxable year to a
 2             College Savings Pool account under Section  16.5  of
 3             the   State   Treasurer  Act,  except  that  amounts
 4             excluded   from   gross   income    under    Section
 5             529(c)(3)(C)(i)  of  the Internal Revenue Code shall
 6             not be  considered  moneys  contributed  under  this
 7             subparagraph  (Y).   For  taxable years ending after
 8             December 31, 2002, moneys contributed to  a  College
 9             Savings Pool account under Section 16.5 of the State
10             Treasurer Act, to the Illinois Prepaid Tuition Trust
11             Fund  under  the Illinois Prepaid Tuition Act, or to
12             any other qualified tuition  program  under  Section
13             529  of  the  Internal  Revenue  Code,  except  that
14             amounts  rolled  over  into  a program under Section
15             529(c)(3)(C)(i) of the Internal Revenue  Code  shall
16             not  be  considered  moneys  contributed  under this
17             subparagraph (Y).  This subparagraph (Y)  is  exempt
18             from the provisions of Section 250;
19                  (Z)  For taxable years 2001 and thereafter, for
20             the  taxable  year  in  which the bonus depreciation
21             deduction  (30%  of  the  adjusted  basis   of   the
22             qualified  property)  is  taken  on  the  taxpayer's
23             federal  income  tax  return under subsection (k) of
24             Section 168 of the Internal  Revenue  Code  and  for
25             each  applicable  taxable year thereafter, an amount
26             equal to "x", where:
27                       (1)  "y"  equals   the   amount   of   the
28                  depreciation  deduction  taken  for the taxable
29                  year  on  the  taxpayer's  federal  income  tax
30                  return  on  property  for   which   the   bonus
31                  depreciation  deduction  (30%  of  the adjusted
32                  basis of the qualified property) was  taken  in
33                  any year under subsection (k) of Section 168 of
34                  the  Internal  Revenue  Code, but not including
 
                            -17-     LRB093 11037 SJM 11720 b
 1                  the bonus depreciation deduction; and
 2                       (2)  "x" equals "y" multiplied by  30  and
 3                  then  divided  by  70  (or  "y"  multiplied  by
 4                  0.429).
 5                  The   aggregate   amount  deducted  under  this
 6             subparagraph in all taxable years for any one  piece
 7             of  property  may not exceed the amount of the bonus
 8             depreciation deduction (30% of the adjusted basis of
 9             the qualified property) taken on  that  property  on
10             the  taxpayer's  federal  income  tax  return  under
11             subsection  (k)  of  Section  168  of  the  Internal
12             Revenue Code; and
13                  (AA)  If the taxpayer reports a capital gain or
14             loss on the taxpayer's federal income tax return for
15             the  taxable  year  based  on  a sale or transfer of
16             property for which the taxpayer was required in  any
17             taxable  year to make an addition modification under
18             subparagraph (D-15), then an amount  equal  to  that
19             addition modification.
20                  The  taxpayer  is allowed to take the deduction
21             under this subparagraph only once  with  respect  to
22             any one piece of property; and
23                  (BB) (Z)  Any amount included in adjusted gross
24             income, other than salary, received by a driver in a
25             ridesharing arrangement using a motor vehicle.

26        (b)  Corporations.
27             (1)  In general.  In the case of a corporation, base
28        income  means  an  amount equal to the taxpayer's taxable
29        income for the taxable year as modified by paragraph (2).
30             (2)  Modifications.  The taxable income referred  to
31        in  paragraph (1) shall be modified by adding thereto the
32        sum of the following amounts:
33                  (A)  An amount equal to  all  amounts  paid  or
34             accrued   to   the  taxpayer  as  interest  and  all
 
                            -18-     LRB093 11037 SJM 11720 b
 1             distributions  received  from  regulated  investment
 2             companies during the  taxable  year  to  the  extent
 3             excluded  from  gross  income  in the computation of
 4             taxable income;
 5                  (B)  An amount  equal  to  the  amount  of  tax
 6             imposed  by  this  Act  to  the extent deducted from
 7             gross income in the computation  of  taxable  income
 8             for the taxable year;
 9                  (C)  In  the  case  of  a  regulated investment
10             company, an amount equal to the excess  of  (i)  the
11             net  long-term  capital  gain  for the taxable year,
12             over (ii) the amount of the capital  gain  dividends
13             designated   as  such  in  accordance  with  Section
14             852(b)(3)(C) of the Internal Revenue  Code  and  any
15             amount  designated under Section 852(b)(3)(D) of the
16             Internal Revenue Code, attributable to  the  taxable
17             year (this amendatory Act of 1995 (Public Act 89-89)
18             is  declarative  of  existing  law  and is not a new
19             enactment);
20                  (D)  The  amount  of  any  net  operating  loss
21             deduction taken in arriving at taxable income, other
22             than a net operating loss  carried  forward  from  a
23             taxable year ending prior to December 31, 1986;
24                  (E)  For taxable years in which a net operating
25             loss  carryback  or carryforward from a taxable year
26             ending prior to December 31, 1986 is an  element  of
27             taxable income under paragraph (1) of subsection (e)
28             or  subparagraph  (E) of paragraph (2) of subsection
29             (e), the  amount  by  which  addition  modifications
30             other  than  those provided by this subparagraph (E)
31             exceeded subtraction modifications in  such  earlier
32             taxable year, with the following limitations applied
33             in the order that they are listed:
34                       (i)  the addition modification relating to
 
                            -19-     LRB093 11037 SJM 11720 b
 1                  the  net operating loss carried back or forward
 2                  to the  taxable  year  from  any  taxable  year
 3                  ending  prior  to  December  31,  1986 shall be
 4                  reduced by the amount of addition  modification
 5                  under  this  subparagraph  (E) which related to
 6                  that net operating loss  and  which  was  taken
 7                  into  account in calculating the base income of
 8                  an earlier taxable year, and
 9                       (ii)  the addition  modification  relating
10                  to  the  net  operating  loss  carried  back or
11                  forward to the taxable year  from  any  taxable
12                  year  ending  prior  to December 31, 1986 shall
13                  not exceed the  amount  of  such  carryback  or
14                  carryforward;
15                  For  taxable  years  in  which  there  is a net
16             operating loss carryback or carryforward  from  more
17             than one other taxable year ending prior to December
18             31, 1986, the addition modification provided in this
19             subparagraph  (E)  shall  be  the sum of the amounts
20             computed   independently   under    the    preceding
21             provisions  of  this  subparagraph (E) for each such
22             taxable year;
23                  (E-5)  For taxable years ending after  December
24             31,   1997,   an   amount   equal  to  any  eligible
25             remediation costs that the corporation  deducted  in
26             computing  adjusted  gross  income and for which the
27             corporation claims a credit under subsection (l)  of
28             Section 201;
29                  (E-10)  For  taxable years 2001 and thereafter,
30             an amount equal to the bonus depreciation  deduction
31             (30%   of   the  adjusted  basis  of  the  qualified
32             property) taken on the taxpayer's federal income tax
33             return for the taxable year under subsection (k)  of
34             Section 168 of the Internal Revenue Code; and
 
                            -20-     LRB093 11037 SJM 11720 b
 1                  (E-11)  If  the taxpayer reports a capital gain
 2             or loss on the taxpayer's federal income tax  return
 3             for  the taxable year based on a sale or transfer of
 4             property for which the taxpayer was required in  any
 5             taxable  year to make an addition modification under
 6             subparagraph (E-10), then an  amount  equal  to  the
 7             aggregate  amount  of  the  deductions  taken in all
 8             taxable years under subparagraph (T) with respect to
 9             that property.;
10                  The taxpayer is required to make  the  addition
11             modification  under this subparagraph only once with
12             respect to any one piece of property;
13        and by deducting from the total so obtained  the  sum  of
14        the following amounts:
15                  (F)  An  amount  equal to the amount of any tax
16             imposed by  this  Act  which  was  refunded  to  the
17             taxpayer  and included in such total for the taxable
18             year;
19                  (G)  An amount equal to any amount included  in
20             such  total under Section 78 of the Internal Revenue
21             Code;
22                  (H)  In the  case  of  a  regulated  investment
23             company,  an  amount  equal  to the amount of exempt
24             interest dividends as defined in subsection (b)  (5)
25             of Section 852 of the Internal Revenue Code, paid to
26             shareholders for the taxable year;
27                  (I)  With   the   exception   of   any  amounts
28             subtracted under subparagraph (J), an  amount  equal
29             to  the  sum of all amounts disallowed as deductions
30             by  (i)  Sections  171(a)  (2),  and  265(a)(2)  and
31             amounts disallowed as interest  expense  by  Section
32             291(a)(3)  of  the  Internal Revenue Code, as now or
33             hereafter  amended,  and  all  amounts  of  expenses
34             allocable to interest and disallowed  as  deductions
 
                            -21-     LRB093 11037 SJM 11720 b
 1             by  Section  265(a)(1) of the Internal Revenue Code,
 2             as now or hereafter amended; and  (ii)  for  taxable
 3             years  ending  on or after August 13, 1999, Sections
 4             171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
 5             of the Internal Revenue Code; the provisions of this
 6             subparagraph  are  exempt  from  the  provisions  of
 7             Section 250;
 8                  (J)  An amount equal to all amounts included in
 9             such total which are exempt from  taxation  by  this
10             State   either   by   reason   of  its  statutes  or
11             Constitution  or  by  reason  of  the  Constitution,
12             treaties or statutes of the United States;  provided
13             that,  in the case of any statute of this State that
14             exempts  income  derived   from   bonds   or   other
15             obligations from the tax imposed under this Act, the
16             amount  exempted  shall  be the interest net of bond
17             premium amortization;
18                  (K)  An  amount  equal   to   those   dividends
19             included   in  such  total  which  were  paid  by  a
20             corporation which conducts business operations in an
21             Enterprise Zone or zones created under the  Illinois
22             Enterprise  Zone  Act and conducts substantially all
23             of its operations in an Enterprise Zone or zones;
24                  (L)  An  amount  equal   to   those   dividends
25             included   in   such  total  that  were  paid  by  a
26             corporation that conducts business operations  in  a
27             federally  designated Foreign Trade Zone or Sub-Zone
28             and  that  is  designated  a  High  Impact  Business
29             located  in  Illinois;   provided   that   dividends
30             eligible  for the deduction provided in subparagraph
31             (K) of paragraph 2 of this subsection shall  not  be
32             eligible  for  the  deduction  provided  under  this
33             subparagraph (L);
34                  (M)  For  any  taxpayer  that  is  a  financial
 
                            -22-     LRB093 11037 SJM 11720 b
 1             organization within the meaning of Section 304(c) of
 2             this  Act,  an  amount  included  in  such  total as
 3             interest income from a loan or loans  made  by  such
 4             taxpayer  to  a  borrower, to the extent that such a
 5             loan is secured by property which  is  eligible  for
 6             the Enterprise Zone Investment Credit.  To determine
 7             the  portion  of  a loan or loans that is secured by
 8             property eligible for a  Section  201(f)  investment
 9             credit  to the borrower, the entire principal amount
10             of the loan or loans between the  taxpayer  and  the
11             borrower  should  be  divided  into the basis of the
12             Section  201(f)  investment  credit  property  which
13             secures the loan or loans, using  for  this  purpose
14             the original basis of such property on the date that
15             it  was  placed  in  service in the Enterprise Zone.
16             The subtraction modification available  to  taxpayer
17             in  any  year  under  this  subsection shall be that
18             portion of the total interest paid by  the  borrower
19             with  respect  to  such  loan  attributable  to  the
20             eligible  property  as calculated under the previous
21             sentence;
22                  (M-1)  For any taxpayer  that  is  a  financial
23             organization within the meaning of Section 304(c) of
24             this  Act,  an  amount  included  in  such  total as
25             interest income from a loan or loans  made  by  such
26             taxpayer  to  a  borrower, to the extent that such a
27             loan is secured by property which  is  eligible  for
28             the  High  Impact  Business  Investment  Credit.  To
29             determine the portion of a loan  or  loans  that  is
30             secured  by  property  eligible for a Section 201(h)
31             investment  credit  to  the  borrower,  the   entire
32             principal  amount  of  the loan or loans between the
33             taxpayer and the borrower should be divided into the
34             basis  of  the  Section  201(h)  investment   credit
 
                            -23-     LRB093 11037 SJM 11720 b
 1             property  which secures the loan or loans, using for
 2             this purpose the original basis of such property  on
 3             the  date  that  it  was  placed  in  service  in  a
 4             federally  designated Foreign Trade Zone or Sub-Zone
 5             located in Illinois.  No taxpayer that  is  eligible
 6             for  the  deduction  provided in subparagraph (M) of
 7             paragraph (2) of this subsection shall  be  eligible
 8             for  the  deduction provided under this subparagraph
 9             (M-1).  The subtraction  modification  available  to
10             taxpayers in any year under this subsection shall be
11             that  portion  of  the  total  interest  paid by the
12             borrower with respect to such loan  attributable  to
13             the   eligible  property  as  calculated  under  the
14             previous sentence;
15                  (N)  Two times any contribution made during the
16             taxable year to a designated  zone  organization  to
17             the  extent that the contribution (i) qualifies as a
18             charitable  contribution  under  subsection  (c)  of
19             Section 170 of the Internal Revenue  Code  and  (ii)
20             must,  by  its terms, be used for a project approved
21             by the Department of Commerce and Community  Affairs
22             under  Section  11  of  the Illinois Enterprise Zone
23             Act;
24                  (O)  An amount equal to: (i)  85%  for  taxable
25             years  ending  on or before December 31, 1992, or, a
26             percentage equal to the percentage  allowable  under
27             Section  243(a)(1)  of  the Internal Revenue Code of
28             1986 for taxable years  ending  after  December  31,
29             1992,  of  the amount by which dividends included in
30             taxable income and received from a corporation  that
31             is  not  created  or organized under the laws of the
32             United States or any state or political  subdivision
33             thereof,  including,  for taxable years ending on or
34             after  December  31,  1988,  dividends  received  or
 
                            -24-     LRB093 11037 SJM 11720 b
 1             deemed  received  or  paid  or  deemed  paid   under
 2             Sections  951  through  964  of the Internal Revenue
 3             Code, exceed the amount of the modification provided
 4             under subparagraph (G)  of  paragraph  (2)  of  this
 5             subsection  (b)  which is related to such dividends;
 6             plus (ii) 100% of the  amount  by  which  dividends,
 7             included  in taxable income and received, including,
 8             for taxable years ending on or  after  December  31,
 9             1988,  dividends received or deemed received or paid
10             or deemed paid under Sections 951 through 964 of the
11             Internal Revenue Code,  from  any  such  corporation
12             specified  in  clause  (i)  that  would  but for the
13             provisions of Section 1504 (b) (3) of  the  Internal
14             Revenue   Code   be  treated  as  a  member  of  the
15             affiliated  group  which   includes   the   dividend
16             recipient,  exceed  the  amount  of the modification
17             provided under subparagraph (G) of paragraph (2)  of
18             this   subsection  (b)  which  is  related  to  such
19             dividends;
20                  (P)  An amount equal to any  contribution  made
21             to  a  job  training project established pursuant to
22             the Tax Increment Allocation Redevelopment Act;
23                  (Q)  An amount  equal  to  the  amount  of  the
24             deduction  used  to  compute  the federal income tax
25             credit for restoration of substantial  amounts  held
26             under  claim  of right for the taxable year pursuant
27             to Section 1341 of  the  Internal  Revenue  Code  of
28             1986;
29                  (R)  In  the  case  of an attorney-in-fact with
30             respect to whom  an  interinsurer  or  a  reciprocal
31             insurer  has  made the election under Section 835 of
32             the Internal Revenue Code, 26 U.S.C. 835, an  amount
33             equal  to the excess, if any, of the amounts paid or
34             incurred by that interinsurer or reciprocal  insurer
 
                            -25-     LRB093 11037 SJM 11720 b
 1             in the taxable year to the attorney-in-fact over the
 2             deduction allowed to that interinsurer or reciprocal
 3             insurer  with  respect to the attorney-in-fact under
 4             Section 835(b) of the Internal Revenue Code for  the
 5             taxable year;
 6                  (S)  For  taxable  years  ending  on  or  after
 7             December  31,  1997,  in  the case of a Subchapter S
 8             corporation, an  amount  equal  to  all  amounts  of
 9             income  allocable  to  a  shareholder subject to the
10             Personal Property Tax Replacement Income Tax imposed
11             by subsections (c) and (d) of Section  201  of  this
12             Act,  including  amounts  allocable to organizations
13             exempt from federal income tax by reason of  Section
14             501(a)   of   the   Internal   Revenue  Code.   This
15             subparagraph (S) is exempt from  the  provisions  of
16             Section 250;
17                  (T)  For taxable years 2001 and thereafter, for
18             the  taxable  year  in  which the bonus depreciation
19             deduction  (30%  of  the  adjusted  basis   of   the
20             qualified  property)  is  taken  on  the  taxpayer's
21             federal  income  tax  return under subsection (k) of
22             Section 168 of the Internal  Revenue  Code  and  for
23             each  applicable  taxable year thereafter, an amount
24             equal to "x", where:
25                       (1)  "y"  equals   the   amount   of   the
26                  depreciation  deduction  taken  for the taxable
27                  year  on  the  taxpayer's  federal  income  tax
28                  return  on  property  for   which   the   bonus
29                  depreciation  deduction  (30%  of  the adjusted
30                  basis of the qualified property) was  taken  in
31                  any year under subsection (k) of Section 168 of
32                  the  Internal  Revenue  Code, but not including
33                  the bonus depreciation deduction; and
34                       (2)  "x" equals "y" multiplied by  30  and
 
                            -26-     LRB093 11037 SJM 11720 b
 1                  then  divided  by  70  (or  "y"  multiplied  by
 2                  0.429).
 3                  The   aggregate   amount  deducted  under  this
 4             subparagraph in all taxable years for any one  piece
 5             of  property  may not exceed the amount of the bonus
 6             depreciation deduction (30% of the adjusted basis of
 7             the qualified property) taken on  that  property  on
 8             the  taxpayer's  federal  income  tax  return  under
 9             subsection  (k)  of  Section  168  of  the  Internal
10             Revenue Code; and
11                  (U)  If  the taxpayer reports a capital gain or
12             loss on the taxpayer's federal income tax return for
13             the taxable year based on  a  sale  or  transfer  of
14             property  for which the taxpayer was required in any
15             taxable year to make an addition modification  under
16             subparagraph  (E-10),  then  an amount equal to that
17             addition modification.
18                  The taxpayer is allowed to take  the  deduction
19             under  this  subparagraph  only once with respect to
20             any one piece of property.
21             (3)  Special rule.  For purposes  of  paragraph  (2)
22        (A),  "gross  income"  in  the  case  of a life insurance
23        company, for tax years ending on and after  December  31,
24        1994,  shall  mean  the  gross  investment income for the
25        taxable year.

26        (c)  Trusts and estates.
27             (1)  In general.  In the case of a trust or  estate,
28        base  income  means  an  amount  equal  to the taxpayer's
29        taxable income  for  the  taxable  year  as  modified  by
30        paragraph (2).
31             (2)  Modifications.   Subject  to  the provisions of
32        paragraph  (3),  the  taxable  income  referred   to   in
33        paragraph (1) shall be modified by adding thereto the sum
34        of the following amounts:
 
                            -27-     LRB093 11037 SJM 11720 b
 1                  (A)  An  amount  equal  to  all amounts paid or
 2             accrued to the taxpayer  as  interest  or  dividends
 3             during  the taxable year to the extent excluded from
 4             gross income in the computation of taxable income;
 5                  (B)  In the case of (i) an estate, $600; (ii) a
 6             trust which,  under  its  governing  instrument,  is
 7             required  to distribute all of its income currently,
 8             $300; and (iii) any other trust, $100, but  in  each
 9             such  case,  only  to  the  extent  such  amount was
10             deducted in the computation of taxable income;
11                  (C)  An amount  equal  to  the  amount  of  tax
12             imposed  by  this  Act  to  the extent deducted from
13             gross income in the computation  of  taxable  income
14             for the taxable year;
15                  (D)  The  amount  of  any  net  operating  loss
16             deduction taken in arriving at taxable income, other
17             than  a  net  operating  loss carried forward from a
18             taxable year ending prior to December 31, 1986;
19                  (E)  For taxable years in which a net operating
20             loss carryback or carryforward from a  taxable  year
21             ending  prior  to December 31, 1986 is an element of
22             taxable income under paragraph (1) of subsection (e)
23             or subparagraph (E) of paragraph (2)  of  subsection
24             (e),  the  amount  by  which  addition modifications
25             other than those provided by this  subparagraph  (E)
26             exceeded  subtraction  modifications in such taxable
27             year, with the following limitations applied in  the
28             order that they are listed:
29                       (i)  the addition modification relating to
30                  the  net operating loss carried back or forward
31                  to the  taxable  year  from  any  taxable  year
32                  ending  prior  to  December  31,  1986 shall be
33                  reduced by the amount of addition  modification
34                  under  this  subparagraph  (E) which related to
 
                            -28-     LRB093 11037 SJM 11720 b
 1                  that net operating loss  and  which  was  taken
 2                  into  account in calculating the base income of
 3                  an earlier taxable year, and
 4                       (ii)  the addition  modification  relating
 5                  to  the  net  operating  loss  carried  back or
 6                  forward to the taxable year  from  any  taxable
 7                  year  ending  prior  to December 31, 1986 shall
 8                  not exceed the  amount  of  such  carryback  or
 9                  carryforward;
10                  For  taxable  years  in  which  there  is a net
11             operating loss carryback or carryforward  from  more
12             than one other taxable year ending prior to December
13             31, 1986, the addition modification provided in this
14             subparagraph  (E)  shall  be  the sum of the amounts
15             computed   independently   under    the    preceding
16             provisions  of  this  subparagraph (E) for each such
17             taxable year;
18                  (F)  For  taxable  years  ending  on  or  after
19             January 1, 1989, an amount equal to the tax deducted
20             pursuant to Section 164 of the Internal Revenue Code
21             if the trust or estate is claiming the same tax  for
22             purposes  of  the  Illinois foreign tax credit under
23             Section 601 of this Act;
24                  (G)  An amount  equal  to  the  amount  of  the
25             capital  gain deduction allowable under the Internal
26             Revenue Code, to  the  extent  deducted  from  gross
27             income in the computation of taxable income;
28                  (G-5)  For  taxable years ending after December
29             31,  1997,  an  amount   equal   to   any   eligible
30             remediation  costs that the trust or estate deducted
31             in computing adjusted gross income and for which the
32             trust or estate claims a credit under subsection (l)
33             of Section 201;
34                  (G-10)  For taxable years 2001 and  thereafter,
 
                            -29-     LRB093 11037 SJM 11720 b
 1             an  amount equal to the bonus depreciation deduction
 2             (30%  of  the  adjusted  basis  of   the   qualified
 3             property) taken on the taxpayer's federal income tax
 4             return  for the taxable year under subsection (k) of
 5             Section 168 of the Internal Revenue Code; and
 6                  (G-11)  If the taxpayer reports a capital  gain
 7             or  loss on the taxpayer's federal income tax return
 8             for the taxable year based on a sale or transfer  of
 9             property  for which the taxpayer was required in any
10             taxable year to make an addition modification  under
11             subparagraph  (G-10),  then  an  amount equal to the
12             aggregate amount of  the  deductions  taken  in  all
13             taxable years under subparagraph (R) with respect to
14             that property.;
15                  The  taxpayer  is required to make the addition
16             modification under this subparagraph only once  with
17             respect to any one piece of property;
18        and  by  deducting  from the total so obtained the sum of
19        the following amounts:
20                  (H)  An amount equal to all amounts included in
21             such total pursuant to the  provisions  of  Sections
22             402(a),  402(c),  403(a), 403(b), 406(a), 407(a) and
23             408 of the Internal Revenue Code or included in such
24             total as distributions under the provisions  of  any
25             retirement  or  disability plan for employees of any
26             governmental agency or unit, or retirement  payments
27             to  retired partners, which payments are excluded in
28             computing  net  earnings  from  self  employment  by
29             Section  1402  of  the  Internal  Revenue  Code  and
30             regulations adopted pursuant thereto;
31                  (I)  The valuation limitation amount;
32                  (J)  An amount equal to the amount of  any  tax
33             imposed  by  this  Act  which  was  refunded  to the
34             taxpayer and included in such total for the  taxable
 
                            -30-     LRB093 11037 SJM 11720 b
 1             year;
 2                  (K)  An amount equal to all amounts included in
 3             taxable  income  as  modified  by subparagraphs (A),
 4             (B), (C), (D), (E), (F) and  (G)  which  are  exempt
 5             from  taxation by this State either by reason of its
 6             statutes  or  Constitution  or  by  reason  of   the
 7             Constitution,  treaties  or  statutes  of the United
 8             States; provided that, in the case of any statute of
 9             this State that exempts income derived from bonds or
10             other obligations from the tax  imposed  under  this
11             Act,  the  amount exempted shall be the interest net
12             of bond premium amortization;
13                  (L)  With  the   exception   of   any   amounts
14             subtracted  under  subparagraph (K), an amount equal
15             to the sum of all amounts disallowed  as  deductions
16             by  (i)  Sections  171(a)  (2)  and 265(a)(2) of the
17             Internal Revenue Code, as now or hereafter  amended,
18             and  all  amounts  of expenses allocable to interest
19             and disallowed as deductions by  Section  265(1)  of
20             the  Internal  Revenue  Code  of  1954,  as  now  or
21             hereafter amended; and (ii) for taxable years ending
22             on  or  after  August  13, 1999, Sections 171(a)(2),
23             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
24             Revenue Code; the provisions  of  this  subparagraph
25             are exempt from the provisions of Section 250;
26                  (M)  An   amount   equal   to  those  dividends
27             included  in  such  total  which  were  paid  by   a
28             corporation which conducts business operations in an
29             Enterprise  Zone or zones created under the Illinois
30             Enterprise Zone Act and conducts  substantially  all
31             of its operations in an Enterprise Zone or Zones;
32                  (N)  An  amount  equal to any contribution made
33             to a job training project  established  pursuant  to
34             the Tax Increment Allocation Redevelopment Act;
 
                            -31-     LRB093 11037 SJM 11720 b
 1                  (O)  An   amount   equal   to  those  dividends
 2             included  in  such  total  that  were  paid   by   a
 3             corporation  that  conducts business operations in a
 4             federally designated Foreign Trade Zone or  Sub-Zone
 5             and  that  is  designated  a  High  Impact  Business
 6             located   in   Illinois;   provided  that  dividends
 7             eligible for the deduction provided in  subparagraph
 8             (M) of paragraph (2) of this subsection shall not be
 9             eligible  for  the  deduction  provided  under  this
10             subparagraph (O);
11                  (P)  An  amount  equal  to  the  amount  of the
12             deduction used to compute  the  federal  income  tax
13             credit  for  restoration of substantial amounts held
14             under claim of right for the taxable  year  pursuant
15             to  Section  1341  of  the  Internal Revenue Code of
16             1986;
17                  (Q)  For taxable year 1999 and  thereafter,  an
18             amount equal to the amount of any (i) distributions,
19             to the extent includible in gross income for federal
20             income tax purposes, made to the taxpayer because of
21             his  or  her  status  as a victim of persecution for
22             racial or religious reasons by Nazi Germany  or  any
23             other  Axis  regime  or as an heir of the victim and
24             (ii) items of income, to the  extent  includible  in
25             gross   income  for  federal  income  tax  purposes,
26             attributable to, derived from or in any way  related
27             to  assets  stolen  from,  hidden from, or otherwise
28             lost to  a  victim  of  persecution  for  racial  or
29             religious  reasons by Nazi Germany or any other Axis
30             regime immediately prior to, during, and immediately
31             after World War II, including, but not  limited  to,
32             interest  on  the  proceeds  receivable as insurance
33             under policies issued to a victim of persecution for
34             racial or religious reasons by Nazi Germany  or  any
 
                            -32-     LRB093 11037 SJM 11720 b
 1             other  Axis  regime  by European insurance companies
 2             immediately  prior  to  and  during  World  War  II;
 3             provided, however,  this  subtraction  from  federal
 4             adjusted  gross  income  does  not  apply  to assets
 5             acquired with such assets or with the proceeds  from
 6             the  sale  of  such  assets; provided, further, this
 7             paragraph shall only apply to a taxpayer who was the
 8             first recipient of such assets after their  recovery
 9             and  who  is  a victim of  persecution for racial or
10             religious reasons by Nazi Germany or any other  Axis
11             regime  or  as an heir of the victim.  The amount of
12             and  the  eligibility  for  any  public  assistance,
13             benefit, or similar entitlement is not  affected  by
14             the   inclusion  of  items  (i)  and  (ii)  of  this
15             paragraph in gross income  for  federal  income  tax
16             purposes.   This   paragraph   is  exempt  from  the
17             provisions of Section 250;
18                  (R)  For taxable years 2001 and thereafter, for
19             the taxable year in  which  the  bonus  depreciation
20             deduction   (30%   of  the  adjusted  basis  of  the
21             qualified  property)  is  taken  on  the  taxpayer's
22             federal income tax return under  subsection  (k)  of
23             Section  168  of  the  Internal Revenue Code and for
24             each applicable taxable year thereafter,  an  amount
25             equal to "x", where:
26                       (1)  "y"   equals   the   amount   of  the
27                  depreciation deduction taken  for  the  taxable
28                  year  on  the  taxpayer's  federal  income  tax
29                  return   on   property   for  which  the  bonus
30                  depreciation deduction  (30%  of  the  adjusted
31                  basis  of  the qualified property) was taken in
32                  any year under subsection (k) of Section 168 of
33                  the Internal Revenue Code,  but  not  including
34                  the bonus depreciation deduction; and
 
                            -33-     LRB093 11037 SJM 11720 b
 1                       (2)  "x"  equals  "y" multiplied by 30 and
 2                  then  divided  by  70  (or  "y"  multiplied  by
 3                  0.429).
 4                  The  aggregate  amount  deducted   under   this
 5             subparagraph  in all taxable years for any one piece
 6             of property may not exceed the amount of  the  bonus
 7             depreciation deduction (30% of the adjusted basis of
 8             the  qualified  property)  taken on that property on
 9             the  taxpayer's  federal  income  tax  return  under
10             subsection  (k)  of  Section  168  of  the  Internal
11             Revenue Code; and
12                  (S)  If the taxpayer reports a capital gain  or
13             loss on the taxpayer's federal income tax return for
14             the  taxable  year  based  on  a sale or transfer of
15             property for which the taxpayer was required in  any
16             taxable  year to make an addition modification under
17             subparagraph (G-10), then an amount  equal  to  that
18             addition modification.
19                  The  taxpayer  is allowed to take the deduction
20             under this subparagraph only once  with  respect  to
21             any one piece of property.
22             (3)  Limitation.   The  amount  of  any modification
23        otherwise required under  this  subsection  shall,  under
24        regulations  prescribed by the Department, be adjusted by
25        any amounts included therein which  were  properly  paid,
26        credited,  or  required to be distributed, or permanently
27        set aside for charitable purposes pursuant   to  Internal
28        Revenue Code Section 642(c) during the taxable year.

29        (d)  Partnerships.
30             (1)  In  general. In the case of a partnership, base
31        income means an amount equal to  the  taxpayer's  taxable
32        income for the taxable year as modified by paragraph (2).
33             (2)  Modifications.  The  taxable income referred to
34        in paragraph (1) shall be modified by adding thereto  the
 
                            -34-     LRB093 11037 SJM 11720 b
 1        sum of the following amounts:
 2                  (A)  An  amount  equal  to  all amounts paid or
 3             accrued to the taxpayer  as  interest  or  dividends
 4             during  the taxable year to the extent excluded from
 5             gross income in the computation of taxable income;
 6                  (B)  An amount  equal  to  the  amount  of  tax
 7             imposed  by  this  Act  to  the extent deducted from
 8             gross income for the taxable year;
 9                  (C)  The amount of deductions  allowed  to  the
10             partnership  pursuant  to  Section  707  (c)  of the
11             Internal Revenue Code  in  calculating  its  taxable
12             income;
13                  (D)  An  amount  equal  to  the  amount  of the
14             capital gain deduction allowable under the  Internal
15             Revenue  Code,  to  the  extent  deducted from gross
16             income in the computation of taxable income;
17                  (D-5)  For taxable years 2001  and  thereafter,
18             an  amount equal to the bonus depreciation deduction
19             (30%  of  the  adjusted  basis  of   the   qualified
20             property) taken on the taxpayer's federal income tax
21             return  for the taxable year under subsection (k) of
22             Section 168 of the Internal Revenue Code; and
23                  (D-6)  If the taxpayer reports a  capital  gain
24             or  loss on the taxpayer's federal income tax return
25             for the taxable year based on a sale or transfer  of
26             property  for which the taxpayer was required in any
27             taxable year to make an addition modification  under
28             subparagraph  (D-5),  then  an  amount  equal to the
29             aggregate amount of  the  deductions  taken  in  all
30             taxable years under subparagraph (O) with respect to
31             that property.;
32                  The  taxpayer  is required to make the addition
33             modification under this subparagraph only once  with
34             respect to any one piece of property;
 
                            -35-     LRB093 11037 SJM 11720 b
 1        and by deducting from the total so obtained the following
 2        amounts:
 3                  (E)  The valuation limitation amount;
 4                  (F)  An  amount  equal to the amount of any tax
 5             imposed by  this  Act  which  was  refunded  to  the
 6             taxpayer  and included in such total for the taxable
 7             year;
 8                  (G)  An amount equal to all amounts included in
 9             taxable income as  modified  by  subparagraphs  (A),
10             (B),  (C)  and (D) which are exempt from taxation by
11             this State either  by  reason  of  its  statutes  or
12             Constitution  or  by  reason  of  the  Constitution,
13             treaties  or statutes of the United States; provided
14             that, in the case of any statute of this State  that
15             exempts   income   derived   from   bonds  or  other
16             obligations from the tax imposed under this Act, the
17             amount exempted shall be the interest  net  of  bond
18             premium amortization;
19                  (H)  Any   income   of  the  partnership  which
20             constitutes personal service income  as  defined  in
21             Section  1348  (b)  (1) of the Internal Revenue Code
22             (as in effect December 31,  1981)  or  a  reasonable
23             allowance  for  compensation  paid  or  accrued  for
24             services  rendered  by  partners to the partnership,
25             whichever is greater;
26                  (I)  An amount equal to all amounts  of  income
27             distributable  to  an entity subject to the Personal
28             Property  Tax  Replacement  Income  Tax  imposed  by
29             subsections (c) and (d) of Section 201 of  this  Act
30             including  amounts  distributable  to  organizations
31             exempt  from federal income tax by reason of Section
32             501(a) of the Internal Revenue Code;
33                  (J)  With  the   exception   of   any   amounts
34             subtracted  under  subparagraph (G), an amount equal
 
                            -36-     LRB093 11037 SJM 11720 b
 1             to the sum of all amounts disallowed  as  deductions
 2             by  (i)  Sections  171(a)  (2),  and  265(2)  of the
 3             Internal Revenue Code of 1954, as now  or  hereafter
 4             amended,  and  all  amounts of expenses allocable to
 5             interest and disallowed  as  deductions  by  Section
 6             265(1)  of  the  Internal  Revenue  Code,  as now or
 7             hereafter amended; and (ii) for taxable years ending
 8             on or after August  13,  1999,  Sections  171(a)(2),
 9             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
10             Revenue  Code;  the  provisions of this subparagraph
11             are exempt from the provisions of Section 250;
12                  (K)  An  amount  equal   to   those   dividends
13             included   in  such  total  which  were  paid  by  a
14             corporation which conducts business operations in an
15             Enterprise Zone or zones created under the  Illinois
16             Enterprise  Zone  Act,  enacted  by the 82nd General
17             Assembly, and  conducts  substantially  all  of  its
18             operations in an Enterprise Zone or Zones;
19                  (L)  An  amount  equal to any contribution made
20             to a job training project  established  pursuant  to
21             the   Real   Property   Tax   Increment   Allocation
22             Redevelopment Act;
23                  (M)  An   amount   equal   to  those  dividends
24             included  in  such  total  that  were  paid   by   a
25             corporation  that  conducts business operations in a
26             federally designated Foreign Trade Zone or  Sub-Zone
27             and  that  is  designated  a  High  Impact  Business
28             located   in   Illinois;   provided  that  dividends
29             eligible for the deduction provided in  subparagraph
30             (K) of paragraph (2) of this subsection shall not be
31             eligible  for  the  deduction  provided  under  this
32             subparagraph (M);
33                  (N)  An  amount  equal  to  the  amount  of the
34             deduction used to compute  the  federal  income  tax
 
                            -37-     LRB093 11037 SJM 11720 b
 1             credit  for  restoration of substantial amounts held
 2             under claim of right for the taxable  year  pursuant
 3             to  Section  1341  of  the  Internal Revenue Code of
 4             1986;
 5                  (O)  For taxable years 2001 and thereafter, for
 6             the taxable year in  which  the  bonus  depreciation
 7             deduction   (30%   of  the  adjusted  basis  of  the
 8             qualified  property)  is  taken  on  the  taxpayer's
 9             federal income tax return under  subsection  (k)  of
10             Section  168  of  the  Internal Revenue Code and for
11             each applicable taxable year thereafter,  an  amount
12             equal to "x", where:
13                       (1)  "y"   equals   the   amount   of  the
14                  depreciation deduction taken  for  the  taxable
15                  year  on  the  taxpayer's  federal  income  tax
16                  return   on   property   for  which  the  bonus
17                  depreciation deduction  (30%  of  the  adjusted
18                  basis  of  the qualified property) was taken in
19                  any year under subsection (k) of Section 168 of
20                  the Internal Revenue Code,  but  not  including
21                  the bonus depreciation deduction; and
22                       (2)  "x"  equals  "y" multiplied by 30 and
23                  then  divided  by  70  (or  "y"  multiplied  by
24                  0.429).
25                  The  aggregate  amount  deducted   under   this
26             subparagraph  in all taxable years for any one piece
27             of property may not exceed the amount of  the  bonus
28             depreciation deduction (30% of the adjusted basis of
29             the  qualified  property)  taken on that property on
30             the  taxpayer's  federal  income  tax  return  under
31             subsection  (k)  of  Section  168  of  the  Internal
32             Revenue Code; and
33                  (P)  If the taxpayer reports a capital gain  or
34             loss on the taxpayer's federal income tax return for
 
                            -38-     LRB093 11037 SJM 11720 b
 1             the  taxable  year  based  on  a sale or transfer of
 2             property for which the taxpayer was required in  any
 3             taxable  year to make an addition modification under
 4             subparagraph (D-5), then an  amount  equal  to  that
 5             addition modification.
 6                  The  taxpayer  is allowed to take the deduction
 7             under this subparagraph only once  with  respect  to
 8             any one piece of property.

 9        (e)  Gross income; adjusted gross income; taxable income.
10             (1)  In  general.   Subject  to  the  provisions  of
11        paragraph  (2)  and  subsection  (b) (3), for purposes of
12        this Section  and  Section  803(e),  a  taxpayer's  gross
13        income,  adjusted gross income, or taxable income for the
14        taxable year shall  mean  the  amount  of  gross  income,
15        adjusted   gross   income   or  taxable  income  properly
16        reportable  for  federal  income  tax  purposes  for  the
17        taxable year under the provisions of the Internal Revenue
18        Code. Taxable income may be less than zero. However,  for
19        taxable  years  ending on or after December 31, 1986, net
20        operating loss carryforwards from  taxable  years  ending
21        prior  to  December  31,  1986, may not exceed the sum of
22        federal taxable income for the taxable  year  before  net
23        operating  loss  deduction,  plus  the excess of addition
24        modifications  over  subtraction  modifications  for  the
25        taxable year.  For taxable years ending prior to December
26        31, 1986, taxable income may never be an amount in excess
27        of the net operating loss for the taxable year as defined
28        in subsections (c) and (d) of Section 172 of the Internal
29        Revenue Code, provided that  when  taxable  income  of  a
30        corporation  (other  than  a  Subchapter  S corporation),
31        trust,  or  estate  is  less  than  zero   and   addition
32        modifications,  other than those provided by subparagraph
33        (E) of paragraph (2) of subsection (b)  for  corporations
34        or  subparagraph  (E)  of paragraph (2) of subsection (c)
 
                            -39-     LRB093 11037 SJM 11720 b
 1        for trusts and estates, exceed subtraction modifications,
 2        an  addition  modification  must  be  made  under   those
 3        subparagraphs  for  any  other  taxable year to which the
 4        taxable income less than zero  (net  operating  loss)  is
 5        applied under Section 172 of the Internal Revenue Code or
 6        under   subparagraph   (E)   of  paragraph  (2)  of  this
 7        subsection (e) applied in conjunction with Section 172 of
 8        the Internal Revenue Code.
 9             (2)  Special rule.  For purposes of paragraph (1) of
10        this subsection, the taxable income  properly  reportable
11        for federal income tax purposes shall mean:
12                  (A)  Certain  life insurance companies.  In the
13             case of a life insurance company subject to the  tax
14             imposed by Section 801 of the Internal Revenue Code,
15             life  insurance  company  taxable  income,  plus the
16             amount of distribution  from  pre-1984  policyholder
17             surplus accounts as calculated under Section 815a of
18             the Internal Revenue Code;
19                  (B)  Certain other insurance companies.  In the
20             case  of  mutual  insurance companies subject to the
21             tax imposed by Section 831 of the  Internal  Revenue
22             Code, insurance company taxable income;
23                  (C)  Regulated  investment  companies.   In the
24             case of a regulated investment  company  subject  to
25             the  tax  imposed  by  Section  852  of the Internal
26             Revenue Code, investment company taxable income;
27                  (D)  Real estate  investment  trusts.   In  the
28             case  of  a  real estate investment trust subject to
29             the tax imposed  by  Section  857  of  the  Internal
30             Revenue  Code,  real estate investment trust taxable
31             income;
32                  (E)  Consolidated corporations.  In the case of
33             a corporation which is a  member  of  an  affiliated
34             group  of  corporations filing a consolidated income
 
                            -40-     LRB093 11037 SJM 11720 b
 1             tax return for the taxable year for  federal  income
 2             tax  purposes,  taxable income determined as if such
 3             corporation had filed a separate return for  federal
 4             income  tax  purposes  for the taxable year and each
 5             preceding taxable year for which it was a member  of
 6             an   affiliated   group.   For   purposes   of  this
 7             subparagraph, the taxpayer's separate taxable income
 8             shall be determined as if the election  provided  by
 9             Section  243(b) (2) of the Internal Revenue Code had
10             been in effect for all such years;
11                  (F)  Cooperatives.    In   the   case   of    a
12             cooperative  corporation or association, the taxable
13             income of such organization determined in accordance
14             with the provisions of Section 1381 through 1388  of
15             the Internal Revenue Code;
16                  (G)  Subchapter  S  corporations.   In the case
17             of: (i) a Subchapter S corporation for  which  there
18             is  in effect an election for the taxable year under
19             Section 1362  of  the  Internal  Revenue  Code,  the
20             taxable  income  of  such  corporation determined in
21             accordance with  Section  1363(b)  of  the  Internal
22             Revenue  Code, except that taxable income shall take
23             into account  those  items  which  are  required  by
24             Section  1363(b)(1)  of the Internal Revenue Code to
25             be  separately  stated;  and  (ii)  a  Subchapter  S
26             corporation for which there is in effect  a  federal
27             election  to  opt  out  of  the  provisions  of  the
28             Subchapter  S  Revision Act of 1982 and have applied
29             instead the prior federal Subchapter S rules  as  in
30             effect  on  July 1, 1982, the taxable income of such
31             corporation  determined  in  accordance   with   the
32             federal  Subchapter  S rules as in effect on July 1,
33             1982; and
34                  (H)  Partnerships.    In   the   case   of    a
 
                            -41-     LRB093 11037 SJM 11720 b
 1             partnership, taxable income determined in accordance
 2             with  Section  703  of  the  Internal  Revenue Code,
 3             except that taxable income shall take  into  account
 4             those  items which are required by Section 703(a)(1)
 5             to be separately stated but  which  would  be  taken
 6             into  account  by  an  individual in calculating his
 7             taxable income.

 8        (f)  Valuation limitation amount.
 9             (1)  In general.  The  valuation  limitation  amount
10        referred  to  in subsections (a) (2) (G), (c) (2) (I) and
11        (d)(2) (E) is an amount equal to:
12                  (A)  The  sum  of  the   pre-August   1,   1969
13             appreciation  amounts  (to  the extent consisting of
14             gain reportable under the provisions of Section 1245
15             or 1250  of  the  Internal  Revenue  Code)  for  all
16             property  in respect of which such gain was reported
17             for the taxable year; plus
18                  (B)  The  lesser  of  (i)  the   sum   of   the
19             pre-August  1,  1969  appreciation  amounts  (to the
20             extent consisting of capital gain) for all  property
21             in  respect  of  which  such  gain  was reported for
22             federal income tax purposes for the taxable year, or
23             (ii) the net capital  gain  for  the  taxable  year,
24             reduced  in  either  case by any amount of such gain
25             included in the amount determined  under  subsection
26             (a) (2) (F) or (c) (2) (H).
27             (2)  Pre-August 1, 1969 appreciation amount.
28                  (A)  If  the  fair  market  value  of  property
29             referred   to   in   paragraph   (1)   was   readily
30             ascertainable  on  August 1, 1969, the pre-August 1,
31             1969 appreciation amount for such  property  is  the
32             lesser  of  (i) the excess of such fair market value
33             over the taxpayer's basis (for determining gain) for
34             such property on that  date  (determined  under  the
 
                            -42-     LRB093 11037 SJM 11720 b
 1             Internal Revenue Code as in effect on that date), or
 2             (ii)  the  total  gain  realized  and reportable for
 3             federal income tax purposes in respect of the  sale,
 4             exchange or other disposition of such property.
 5                  (B)  If  the  fair  market  value  of  property
 6             referred   to  in  paragraph  (1)  was  not  readily
 7             ascertainable on August 1, 1969, the  pre-August  1,
 8             1969  appreciation  amount for such property is that
 9             amount which bears the same ratio to the total  gain
10             reported  in  respect  of  the  property for federal
11             income tax purposes for the  taxable  year,  as  the
12             number  of  full calendar months in that part of the
13             taxpayer's holding period for  the  property  ending
14             July  31,  1969 bears to the number of full calendar
15             months in the taxpayer's entire holding  period  for
16             the property.
17                  (C)  The   Department   shall   prescribe  such
18             regulations as may be necessary  to  carry  out  the
19             purposes of this paragraph.

20        (g)  Double  deductions.   Unless  specifically  provided
21    otherwise, nothing in this Section shall permit the same item
22    to be deducted more than once.

23        (h)  Legislative intention.  Except as expressly provided
24    by   this   Section   there  shall  be  no  modifications  or
25    limitations on the amounts of income, gain, loss or deduction
26    taken into account  in  determining  gross  income,  adjusted
27    gross  income  or  taxable  income  for  federal  income  tax
28    purposes for the taxable year, or in the amount of such items
29    entering  into  the computation of base income and net income
30    under this Act for such taxable year, whether in  respect  of
31    property values as of August 1, 1969 or otherwise.
32    (Source:  P.A.  91-192,  eff.  7-20-99; 91-205, eff. 7-20-99;
33    91-357, eff. 7-29-99;  91-541,  eff.  8-13-99;  91-676,  eff.
 
                            -43-     LRB093 11037 SJM 11720 b
 1    12-23-99;  91-845,  eff. 6-22-00; 91-913, eff. 1-1-01; 92-16,
 2    eff. 6-28-01; 92-244,  eff.  8-3-01;  92-439,  eff.  8-17-01;
 3    92-603,  eff.  6-28-02;  92-626,  eff.  7-11-02; 92-651, eff.
 4    7-11-02; 92-846, eff. 8-23-02; revised 11-15-02.)

 5        Section 99.  Effective date.  This Act takes effect  upon
 6    becoming law.