093_HB3542ham001

 










                                     LRB093 11179 BDD 12621 a

 1                    AMENDMENT TO HOUSE BILL 3542

 2        AMENDMENT NO.     .  Amend House Bill 3542  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The State Finance Act is amended by adding
 5    Sections 5.595 and 6z-59 as follows:

 6        (30 ILCS 105/5.595 new)
 7        Sec. 5.595. The School District Property Tax Relief Fund.

 8        (30 ILCS 105/6z-59 new)
 9        Sec. 6z-59.  School District Property  Tax  Relief  Fund.
10    The  School District Property Tax Relief Fund is created as a
11    special fund in the State treasury.  All interest  earned  on
12    moneys in the Fund shall be deposited into the Fund.
13        (a)  As used in this Section:
14        "Department" means the Illinois Department of Revenue.
15        "School  district  property  tax  relief grant" means the
16    money designated to be distributed to a school district  from
17    the  moneys  appropriated  by  the  General Assembly from the
18    School District Property Tax Relief Fund.
19        (b)  Between November 15 and 17 of each year beginning in
20    2003,  the  Department  must  certify  the  amount  of  money
21    available for school district property tax relief grants. The
 
                            -2-      LRB093 11179 BDD 12621 a
 1    amount available is equal to the amount appropriated  by  the
 2    General  Assembly  or  the unencumbered amount in the Fund at
 3    the time of certification, whichever is less.
 4        (c)  Between November 15 and 17 of each year beginning in
 5    2003, the Department must calculate  each  school  district's
 6    grant amount.
 7        The  amount  of  the grant for each school district for a
 8    tax year is calculated as follows: (i) each  school  district
 9    must  certify  to the Department the rate of the tax extended
10    for educational purposes for the 2001 tax  year  (payable  in
11    2002)  for  the  school  district;  (ii)  the Department must
12    determine the equalized assessed value (EAV) of  all  taxable
13    property  in  the  school district for the tax year preceding
14    the then current tax year; (iii) the rate determined in  item
15    (i)  is  multiplied  by the EAV determined in item (ii); (iv)
16    the amounts determined in item (iii) for all school districts
17    are added together to reach an aggregate total for all school
18    districts; and (v) the amount certified by the Department  as
19    available for distribution for that tax year is multiplied by
20    the  amount  determined in item (iii) and then the product is
21    divided by the amount determined in  item  (iv).  The  result
22    determined  in item (v) is the grant amount for the tax year.
23    For example:
24             (1)  Total grant amount certified by the  Department
25        for  the  tax  year  is  $5,000,000  to be distributed to
26        school districts A and B.
27             (2)  School district A:
28                  (A)  Tax rate for educational purposes for  the
29             2001 tax year was 1.50%.
30                  (B)  Equalized  assessed  value  of all taxable
31             property in school district A for the preceding  tax
32             year was $50,000,000.
33             (3)  School district B:
34                  (A)  Tax  rate for educational purposes for the
 
                            -3-      LRB093 11179 BDD 12621 a
 1             2001 tax year was 1.35%.
 2                  (B)  Equalized assessed value  of  all  taxable
 3             property  in school district B for the preceding tax
 4             year was $75,000,000.
 5    For school  district  A,  the  tax  rate  multiplied  by  the
 6    preceding  tax year's equalized assessed value of all taxable
 7    property is $750,000 (1.50% multiplied by  $50,000,000).  For
 8    school  district  B, the tax rate multiplied by the preceding
 9    tax year's equalized assessed value of all  taxable  property
10    is  $1,012,500  (1.35% multiplied by $75,000,000). The sum of
11    these 2 amounts is $1,762,500. The grant for school  district
12    A  is $5,000,000 (the total amount of grant moneys available)
13    multiplied by $750,000 and then the  product  is  divided  by
14    $1,762,500.  School  district  A's  grant  is $2,127,660. The
15    grant for school district B is $5,000,000 (the  total  amount
16    of  grant moneys available) multiplied by $1,012,500 and then
17    the product is divided by  $1,762,500.  School  district  B's
18    grant is $2,872,340.
19        The   Department   must  adopt  rules  to  determine  the
20    computation of the grant amount for a  school  district  that
21    has undergone school district reorganization under Article 7,
22    7A,  11A,  11B,  or  11D  of  the  School  Code (for example:
23    consolidation, conversion into a different type of  district,
24    or creation of a new district).
25        (d)  Between November 15 and 17 of each year beginning in
26    2003, the Department must certify to the county clerk of each
27    county the amount of the grant for each school district lying
28    wholly  or  partly  in  the  county  to be paid to the county
29    collector for distribution to the school district. The amount
30    of the grant for a school district that lies  partly  in  the
31    county shall be that amount which bears the same ratio to the
32    grant for the whole school district as the equalized assessed
33    value  of the taxable property in the school district for the
34    preceding tax year that lies  in  the  county  bears  to  the
 
                            -4-      LRB093 11179 BDD 12621 a
 1    equalized  assessed  value  of  all  taxable  property in the
 2    school district for the preceding tax year.
 3        (e)  Upon receipt of  a  notice  from  the  county  clerk
 4    required  under  Section 18-178 of the Property Tax Code that
 5    the extension for educational purposes  has  been  determined
 6    and  abated  for  each  school  district  or part of a school
 7    district in the county, the Department must  certify  to  the
 8    Comptroller  the  amount  of the school district property tax
 9    relief  grant  to  be  paid  to  the  county  collector.  The
10    Comptroller must  promptly  pay  the  grants  to  the  county
11    collector.  Upon  receipt of the school district property tax
12    relief grants, the county collector must pay  the  grants  to
13    the respective school districts within 5 business days.

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

16        (35 ILCS 5/203) (from Ch. 120, par. 2-203)
17        Sec. 203.  Base income defined.
18        (a)  Individuals.
19             (1)  In general.  In the case of an individual, base
20        income means an amount equal to the  taxpayer's  adjusted
21        gross   income  for  the  taxable  year  as  modified  by
22        paragraph (2).
23             (2)  Modifications.   The  adjusted   gross   income
24        referred  to in paragraph (1) shall be modified by adding
25        thereto the sum of the following amounts:
26                  (A)  An amount equal to  all  amounts  paid  or
27             accrued  to  the  taxpayer  as interest or dividends
28             during the taxable year to the extent excluded  from
29             gross  income  in  the computation of adjusted gross
30             income, except stock dividends of  qualified  public
31             utilities   described   in  Section  305(e)  of  the
32             Internal Revenue Code;
 
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 1                  (B)  An amount  equal  to  the  amount  of  tax
 2             imposed  by  this  Act  to  the extent deducted from
 3             gross income in the computation  of  adjusted  gross
 4             income for the taxable year;
 5                  (C)  An  amount  equal  to  the amount received
 6             during the taxable year as a recovery or  refund  of
 7             real   property  taxes  paid  with  respect  to  the
 8             taxpayer's principal residence under the Revenue Act
 9             of 1939 and for which  a  deduction  was  previously
10             taken  under  subparagraph (L) of this paragraph (2)
11             prior to July 1, 1991, the retrospective application
12             date of Article 4 of Public Act 87-17.  In the  case
13             of  multi-unit  or  multi-use  structures  and  farm
14             dwellings,  the  taxes  on  the taxpayer's principal
15             residence shall be that portion of the  total  taxes
16             for  the  entire  property  which is attributable to
17             such principal residence;
18                  (D)  An amount  equal  to  the  amount  of  the
19             capital  gain deduction allowable under the Internal
20             Revenue Code, to  the  extent  deducted  from  gross
21             income in the computation of adjusted gross income;
22                  (D-5)  An amount, to the extent not included in
23             adjusted  gross income, equal to the amount of money
24             withdrawn by the taxpayer in the taxable year from a
25             medical care savings account and the interest earned
26             on the account in the taxable year of  a  withdrawal
27             pursuant  to  subsection  (b)  of  Section 20 of the
28             Medical Care Savings Account Act or  subsection  (b)
29             of  Section  20  of the Medical Care Savings Account
30             Act of 2000;
31                  (D-10)  For taxable years ending after December
32             31,  1997,  an  amount   equal   to   any   eligible
33             remediation  costs  that  the individual deducted in
34             computing adjusted gross income and  for  which  the
 
                            -6-      LRB093 11179 BDD 12621 a
 1             individual  claims  a credit under subsection (l) of
 2             Section 201;
 3                  (D-15)  For taxable years 2001 and  thereafter,
 4             an  amount equal to the bonus depreciation deduction
 5             (30%  of  the  adjusted  basis  of   the   qualified
 6             property) taken on the taxpayer's federal income tax
 7             return  for the taxable year under subsection (k) of
 8             Section 168 of the Internal Revenue Code; and
 9                  (D-16)  If the taxpayer reports a capital  gain
10             or  loss on the taxpayer's federal income tax return
11             for the taxable year based on a sale or transfer  of
12             property  for which the taxpayer was required in any
13             taxable year to make an addition modification  under
14             subparagraph  (D-15),  then  an  amount equal to the
15             aggregate amount of  the  deductions  taken  in  all
16             taxable years under subparagraph (Z) with respect to
17             that property.;
18                  The  taxpayer  is required to make the addition
19             modification under this subparagraph only once  with
20             respect to any one piece of property;. and
21                  (D-20)  (D-15)  For  taxable years beginning on
22             or  after  January  1,  2002,  in  the  case  of   a
23             distribution  from a qualified tuition program under
24             Section 529 of the Internal Revenue Code, other than
25             (i) a  distribution  from  a  College  Savings  Pool
26             created  under  Section  16.5 of the State Treasurer
27             Act or (ii) a distribution from the Illinois Prepaid
28             Tuition Trust Fund, an amount equal  to  the  amount
29             excluded    from    gross   income   under   Section
30             529(c)(3)(B);
31        and by deducting from the total so obtained  the  sum  of
32        the following amounts:
33                  (E)  For  taxable  years ending before December
34             31, 2001, any  amount  included  in  such  total  in
 
                            -7-      LRB093 11179 BDD 12621 a
 1             respect  of  any  compensation  (including  but  not
 2             limited  to  any  compensation  paid or accrued to a
 3             serviceman while a prisoner of  war  or  missing  in
 4             action)  paid  to  a  resident by reason of being on
 5             active duty in the Armed Forces of the United States
 6             and in respect of any compensation paid  or  accrued
 7             to  a  resident who as a governmental employee was a
 8             prisoner of war or missing in action, and in respect
 9             of any compensation paid to a resident  in  1971  or
10             thereafter for annual training performed pursuant to
11             Sections  502  and 503, Title 32, United States Code
12             as a member of  the  Illinois  National  Guard.  For
13             taxable  years ending on or after December 31, 2001,
14             any amount included in such total in respect of  any
15             compensation  (including  but  not  limited  to  any
16             compensation paid or accrued to a serviceman while a
17             prisoner  of  war  or  missing  in action) paid to a
18             resident  by  reason  of  being  a  member  of   any
19             component  of  the Armed Forces of the United States
20             and in respect of any compensation paid  or  accrued
21             to  a  resident who as a governmental employee was a
22             prisoner of war or missing in action, and in respect
23             of any compensation paid to a resident  in  2001  or
24             thereafter  by  reason  of  being  a  member  of the
25             Illinois National  Guard.  The  provisions  of  this
26             amendatory  Act  of  the  92nd  General Assembly are
27             exempt from the provisions of Section 250;
28                  (F)  An amount equal to all amounts included in
29             such total pursuant to the  provisions  of  Sections
30             402(a),  402(c), 403(a), 403(b), 406(a), 407(a), and
31             408 of the Internal Revenue  Code,  or  included  in
32             such  total as distributions under the provisions of
33             any retirement or disability plan for  employees  of
34             any  governmental  agency  or  unit,  or  retirement
 
                            -8-      LRB093 11179 BDD 12621 a
 1             payments  to  retired  partners,  which payments are
 2             excluded  in  computing  net  earnings   from   self
 3             employment  by  Section 1402 of the Internal Revenue
 4             Code and regulations adopted pursuant thereto;
 5                  (G)  The valuation limitation amount;
 6                  (H)  An amount equal to the amount of  any  tax
 7             imposed  by  this  Act  which  was  refunded  to the
 8             taxpayer and included in such total for the  taxable
 9             year;
10                  (I)  An amount equal to all amounts included in
11             such total pursuant to the provisions of Section 111
12             of  the Internal Revenue Code as a recovery of items
13             previously deducted from adjusted  gross  income  in
14             the computation of taxable income;
15                  (J)  An   amount   equal   to  those  dividends
16             included  in  such  total  which  were  paid  by   a
17             corporation which conducts business operations in an
18             Enterprise  Zone or zones created under the Illinois
19             Enterprise Zone Act, and conducts substantially  all
20             of its operations in an Enterprise Zone or zones;
21                  (K)  An   amount   equal   to  those  dividends
22             included  in  such  total  that  were  paid   by   a
23             corporation  that  conducts business operations in a
24             federally designated Foreign Trade Zone or  Sub-Zone
25             and  that  is  designated  a  High  Impact  Business
26             located   in   Illinois;   provided  that  dividends
27             eligible for the deduction provided in  subparagraph
28             (J) of paragraph (2) of this subsection shall not be
29             eligible  for  the  deduction  provided  under  this
30             subparagraph (K);
31                  (L)  For  taxable  years  ending after December
32             31, 1983, an amount equal  to  all  social  security
33             benefits  and  railroad retirement benefits included
34             in such total pursuant to Sections 72(r) and  86  of
 
                            -9-      LRB093 11179 BDD 12621 a
 1             the Internal Revenue Code;
 2                  (M)  With   the   exception   of   any  amounts
 3             subtracted under subparagraph (N), an  amount  equal
 4             to  the  sum of all amounts disallowed as deductions
 5             by (i)  Sections  171(a)  (2),  and  265(2)  of  the
 6             Internal  Revenue  Code of 1954, as now or hereafter
 7             amended, and all amounts of  expenses  allocable  to
 8             interest  and   disallowed  as deductions by Section
 9             265(1) of the Internal Revenue Code of 1954, as  now
10             or  hereafter  amended;  and  (ii) for taxable years
11             ending  on  or  after  August  13,  1999,   Sections
12             171(a)(2),  265,  280C,  and  832(b)(5)(B)(i) of the
13             Internal  Revenue  Code;  the  provisions  of   this
14             subparagraph  are  exempt  from  the  provisions  of
15             Section 250;
16                  (N)  An amount equal to all amounts included in
17             such  total  which  are exempt from taxation by this
18             State  either  by  reason   of   its   statutes   or
19             Constitution  or  by  reason  of  the  Constitution,
20             treaties  or statutes of the United States; provided
21             that, in the case of any statute of this State  that
22             exempts   income   derived   from   bonds  or  other
23             obligations from the tax imposed under this Act, the
24             amount exempted shall be the interest  net  of  bond
25             premium amortization;
26                  (O)  An  amount  equal to any contribution made
27             to a job training project  established  pursuant  to
28             the Tax Increment Allocation Redevelopment Act;
29                  (P)  An  amount  equal  to  the  amount  of the
30             deduction used to compute  the  federal  income  tax
31             credit  for  restoration of substantial amounts held
32             under claim of right for the taxable  year  pursuant
33             to  Section  1341  of  the  Internal Revenue Code of
34             1986;
 
                            -10-     LRB093 11179 BDD 12621 a
 1                  (Q)  An amount equal to any amounts included in
 2             such  total,  received  by  the   taxpayer   as   an
 3             acceleration  in  the  payment of life, endowment or
 4             annuity benefits in advance of the time  they  would
 5             otherwise  be payable as an indemnity for a terminal
 6             illness;
 7                  (R)  An amount  equal  to  the  amount  of  any
 8             federal  or  State  bonus  paid  to  veterans of the
 9             Persian Gulf War;
10                  (S)  An  amount,  to  the  extent  included  in
11             adjusted gross income, equal  to  the  amount  of  a
12             contribution  made  in the taxable year on behalf of
13             the taxpayer  to  a  medical  care  savings  account
14             established  under  the Medical Care Savings Account
15             Act or the Medical Care Savings Account Act of  2000
16             to  the  extent  the contribution is accepted by the
17             account administrator as provided in that Act;
18                  (T)  An  amount,  to  the  extent  included  in
19             adjusted  gross  income,  equal  to  the  amount  of
20             interest earned in the taxable  year  on  a  medical
21             care  savings  account established under the Medical
22             Care Savings Account Act or the Medical Care Savings
23             Account Act of 2000 on behalf of the taxpayer, other
24             than interest added pursuant to item (D-5)  of  this
25             paragraph (2);
26                  (U)  For one taxable year beginning on or after
27             January 1, 1994, an amount equal to the total amount
28             of  tax  imposed  and paid under subsections (a) and
29             (b) of Section 201 of  this  Act  on  grant  amounts
30             received  by  the  taxpayer  under  the Nursing Home
31             Grant Assistance Act during the  taxpayer's  taxable
32             years 1992 and 1993;
33                  (V)  Beginning  with  tax  years  ending  on or
34             after December 31, 1995 and ending  with  tax  years
 
                            -11-     LRB093 11179 BDD 12621 a
 1             ending  on  or  before  December 31, 2004, an amount
 2             equal to the amount paid by  a  taxpayer  who  is  a
 3             self-employed  taxpayer, a partner of a partnership,
 4             or a shareholder in a Subchapter S  corporation  for
 5             health  insurance  or  long-term  care insurance for
 6             that  taxpayer  or   that   taxpayer's   spouse   or
 7             dependents,  to  the extent that the amount paid for
 8             that health insurance or  long-term  care  insurance
 9             may  be  deducted  under Section 213 of the Internal
10             Revenue Code of 1986, has not been deducted  on  the
11             federal  income tax return of the taxpayer, and does
12             not exceed the taxable income attributable  to  that
13             taxpayer's   income,   self-employment   income,  or
14             Subchapter S  corporation  income;  except  that  no
15             deduction  shall  be  allowed under this item (V) if
16             the taxpayer  is  eligible  to  participate  in  any
17             health insurance or long-term care insurance plan of
18             an  employer  of  the  taxpayer  or  the  taxpayer's
19             spouse.   The  amount  of  the  health insurance and
20             long-term care insurance subtracted under this  item
21             (V)  shall be determined by multiplying total health
22             insurance and long-term care insurance premiums paid
23             by the taxpayer times a number that  represents  the
24             fractional  percentage  of eligible medical expenses
25             under Section 213 of the Internal  Revenue  Code  of
26             1986 not actually deducted on the taxpayer's federal
27             income tax return;
28                  (W)  For  taxable  years  beginning on or after
29             January  1,  1998,  all  amounts  included  in   the
30             taxpayer's  federal gross income in the taxable year
31             from amounts converted from a regular IRA to a  Roth
32             IRA. This paragraph is exempt from the provisions of
33             Section 250;
34                  (X)  For  taxable  year 1999 and thereafter, an
 
                            -12-     LRB093 11179 BDD 12621 a
 1             amount equal to the amount of any (i) distributions,
 2             to the extent includible in gross income for federal
 3             income tax purposes, made to the taxpayer because of
 4             his or her status as a  victim  of  persecution  for
 5             racial  or  religious reasons by Nazi Germany or any
 6             other Axis regime or as an heir of  the  victim  and
 7             (ii)  items  of  income, to the extent includible in
 8             gross  income  for  federal  income  tax   purposes,
 9             attributable  to, derived from or in any way related
10             to assets stolen from,  hidden  from,  or  otherwise
11             lost  to  a  victim  of  persecution  for  racial or
12             religious reasons by Nazi Germany or any other  Axis
13             regime immediately prior to, during, and immediately
14             after  World  War II, including, but not limited to,
15             interest on the  proceeds  receivable  as  insurance
16             under policies issued to a victim of persecution for
17             racial  or  religious reasons by Nazi Germany or any
18             other Axis regime by  European  insurance  companies
19             immediately  prior  to  and  during  World  War  II;
20             provided,  however,  this  subtraction  from federal
21             adjusted gross  income  does  not  apply  to  assets
22             acquired  with such assets or with the proceeds from
23             the sale of such  assets;  provided,  further,  this
24             paragraph shall only apply to a taxpayer who was the
25             first  recipient of such assets after their recovery
26             and who is a victim of  persecution  for  racial  or
27             religious  reasons by Nazi Germany or any other Axis
28             regime or as an heir of the victim.  The  amount  of
29             and  the  eligibility  for  any  public  assistance,
30             benefit,  or  similar entitlement is not affected by
31             the  inclusion  of  items  (i)  and  (ii)  of   this
32             paragraph  in  gross  income  for federal income tax
33             purposes.  This  paragraph  is   exempt   from   the
34             provisions of Section 250;
 
                            -13-     LRB093 11179 BDD 12621 a
 1                  (Y)  For  taxable  years  beginning on or after
 2             January 1, 2002, moneys contributed in  the  taxable
 3             year to a College Savings Pool account under Section
 4             16.5 of the State Treasurer Act, except that amounts
 5             excluded    from    gross   income   under   Section
 6             529(c)(3)(C)(i) of the Internal Revenue  Code  shall
 7             not  be  considered  moneys  contributed  under this
 8             subparagraph (Y).  This subparagraph (Y)  is  exempt
 9             from the provisions of Section 250;
10                  (Z)  For taxable years 2001 and thereafter, for
11             the  taxable  year  in  which the bonus depreciation
12             deduction  (30%  of  the  adjusted  basis   of   the
13             qualified  property)  is  taken  on  the  taxpayer's
14             federal  income  tax  return under subsection (k) of
15             Section 168 of the Internal  Revenue  Code  and  for
16             each  applicable  taxable year thereafter, an amount
17             equal to "x", where:
18                       (1)  "y"  equals   the   amount   of   the
19                  depreciation  deduction  taken  for the taxable
20                  year  on  the  taxpayer's  federal  income  tax
21                  return  on  property  for   which   the   bonus
22                  depreciation  deduction  (30%  of  the adjusted
23                  basis of the qualified property) was  taken  in
24                  any year under subsection (k) of Section 168 of
25                  the  Internal  Revenue  Code, but not including
26                  the bonus depreciation deduction; and
27                       (2)  "x" equals "y" multiplied by  30  and
28                  then  divided  by  70  (or  "y"  multiplied  by
29                  0.429).
30                  The   aggregate   amount  deducted  under  this
31             subparagraph in all taxable years for any one  piece
32             of  property  may not exceed the amount of the bonus
33             depreciation deduction (30% of the adjusted basis of
34             the qualified property) taken on  that  property  on
 
                            -14-     LRB093 11179 BDD 12621 a
 1             the  taxpayer's  federal  income  tax  return  under
 2             subsection  (k)  of  Section  168  of  the  Internal
 3             Revenue Code; and
 4                  (AA)  If the taxpayer reports a capital gain or
 5             loss on the taxpayer's federal income tax return for
 6             the  taxable  year  based  on  a sale or transfer of
 7             property for which the taxpayer was required in  any
 8             taxable  year to make an addition modification under
 9             subparagraph (D-15), then an amount  equal  to  that
10             addition modification.
11                  The  taxpayer  is allowed to take the deduction
12             under this subparagraph only once  with  respect  to
13             any one piece of property; and
14                  (BB) (Z)  Any amount included in adjusted gross
15             income, other than salary, received by a driver in a
16             ridesharing arrangement using a motor vehicle; and
17                  (CC)  Beginning  with  tax  years  ending on or
18             after December 31, 2003 and ending  with  tax  years
19             ending  on  or  before December 30, 2008, an amount,
20             not to exceed $1,200, equal  to  15%  of  the  total
21             amount  of rent paid by the taxpayer during the year
22             for  the  principal  place  of  residence   of   the
23             taxpayer.

24        (b)  Corporations.
25             (1)  In general.  In the case of a corporation, base
26        income  means  an  amount equal to the taxpayer's taxable
27        income for the taxable year as modified by paragraph (2).
28             (2)  Modifications.  The taxable income referred  to
29        in  paragraph (1) shall be modified by adding thereto the
30        sum of the following amounts:
31                  (A)  An amount equal to  all  amounts  paid  or
32             accrued   to   the  taxpayer  as  interest  and  all
33             distributions  received  from  regulated  investment
34             companies during the  taxable  year  to  the  extent
 
                            -15-     LRB093 11179 BDD 12621 a
 1             excluded  from  gross  income  in the computation of
 2             taxable income;
 3                  (B)  An amount  equal  to  the  amount  of  tax
 4             imposed  by  this  Act  to  the extent deducted from
 5             gross income in the computation  of  taxable  income
 6             for the taxable year;
 7                  (C)  In  the  case  of  a  regulated investment
 8             company, an amount equal to the excess  of  (i)  the
 9             net  long-term  capital  gain  for the taxable year,
10             over (ii) the amount of the capital  gain  dividends
11             designated   as  such  in  accordance  with  Section
12             852(b)(3)(C) of the Internal Revenue  Code  and  any
13             amount  designated under Section 852(b)(3)(D) of the
14             Internal Revenue Code, attributable to  the  taxable
15             year (this amendatory Act of 1995 (Public Act 89-89)
16             is  declarative  of  existing  law  and is not a new
17             enactment);
18                  (D)  The  amount  of  any  net  operating  loss
19             deduction taken in arriving at taxable income, other
20             than a net operating loss  carried  forward  from  a
21             taxable year ending prior to December 31, 1986;
22                  (E)  For taxable years in which a net operating
23             loss  carryback  or carryforward from a taxable year
24             ending prior to December 31, 1986 is an  element  of
25             taxable income under paragraph (1) of subsection (e)
26             or  subparagraph  (E) of paragraph (2) of subsection
27             (e), the  amount  by  which  addition  modifications
28             other  than  those provided by this subparagraph (E)
29             exceeded subtraction modifications in  such  earlier
30             taxable year, with the following limitations applied
31             in the order that they are listed:
32                       (i)  the addition modification relating to
33                  the  net operating loss carried back or forward
34                  to the  taxable  year  from  any  taxable  year
 
                            -16-     LRB093 11179 BDD 12621 a
 1                  ending  prior  to  December  31,  1986 shall be
 2                  reduced by the amount of addition  modification
 3                  under  this  subparagraph  (E) which related to
 4                  that net operating loss  and  which  was  taken
 5                  into  account in calculating the base income of
 6                  an earlier taxable year, and
 7                       (ii)  the addition  modification  relating
 8                  to  the  net  operating  loss  carried  back or
 9                  forward to the taxable year  from  any  taxable
10                  year  ending  prior  to December 31, 1986 shall
11                  not exceed the  amount  of  such  carryback  or
12                  carryforward;
13                  For  taxable  years  in  which  there  is a net
14             operating loss carryback or carryforward  from  more
15             than one other taxable year ending prior to December
16             31, 1986, the addition modification provided in this
17             subparagraph  (E)  shall  be  the sum of the amounts
18             computed   independently   under    the    preceding
19             provisions  of  this  subparagraph (E) for each such
20             taxable year;
21                  (E-5)  For taxable years ending after  December
22             31,   1997,   an   amount   equal  to  any  eligible
23             remediation costs that the corporation  deducted  in
24             computing  adjusted  gross  income and for which the
25             corporation claims a credit under subsection (l)  of
26             Section 201;
27                  (E-10)  For  taxable years 2001 and thereafter,
28             an amount equal to the bonus depreciation  deduction
29             (30%   of   the  adjusted  basis  of  the  qualified
30             property) taken on the taxpayer's federal income tax
31             return for the taxable year under subsection (k)  of
32             Section 168 of the Internal Revenue Code; and
33                  (E-11)  If  the taxpayer reports a capital gain
34             or loss on the taxpayer's federal income tax  return
 
                            -17-     LRB093 11179 BDD 12621 a
 1             for  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 (E-10), then an  amount  equal  to  the
 5             aggregate  amount  of  the  deductions  taken in all
 6             taxable years under subparagraph (T) with respect to
 7             that property.;
 8                  The taxpayer is required to make  the  addition
 9             modification  under this subparagraph only once with
10             respect to any one piece of property;
11        and by deducting from the total so obtained  the  sum  of
12        the following amounts:
13                  (F)  An  amount  equal to the amount of any tax
14             imposed by  this  Act  which  was  refunded  to  the
15             taxpayer  and included in such total for the taxable
16             year;
17                  (G)  An amount equal to any amount included  in
18             such  total under Section 78 of the Internal Revenue
19             Code;
20                  (H)  In the  case  of  a  regulated  investment
21             company,  an  amount  equal  to the amount of exempt
22             interest dividends as defined in subsection (b)  (5)
23             of Section 852 of the Internal Revenue Code, paid to
24             shareholders for the taxable year;
25                  (I)  With   the   exception   of   any  amounts
26             subtracted under subparagraph (J), an  amount  equal
27             to  the  sum of all amounts disallowed as deductions
28             by  (i)  Sections  171(a)  (2),  and  265(a)(2)  and
29             amounts disallowed as interest  expense  by  Section
30             291(a)(3)  of  the  Internal Revenue Code, as now or
31             hereafter  amended,  and  all  amounts  of  expenses
32             allocable to interest and disallowed  as  deductions
33             by  Section  265(a)(1) of the Internal Revenue Code,
34             as now or hereafter amended; and  (ii)  for  taxable
 
                            -18-     LRB093 11179 BDD 12621 a
 1             years  ending  on or after August 13, 1999, Sections
 2             171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
 3             of the Internal Revenue Code; the provisions of this
 4             subparagraph  are  exempt  from  the  provisions  of
 5             Section 250;
 6                  (J)  An amount equal to all amounts included in
 7             such total which are exempt from  taxation  by  this
 8             State   either   by   reason   of  its  statutes  or
 9             Constitution  or  by  reason  of  the  Constitution,
10             treaties or statutes of the United States;  provided
11             that,  in the case of any statute of this State that
12             exempts  income  derived   from   bonds   or   other
13             obligations from the tax imposed under this Act, the
14             amount  exempted  shall  be the interest net of bond
15             premium amortization;
16                  (K)  An  amount  equal   to   those   dividends
17             included   in  such  total  which  were  paid  by  a
18             corporation which conducts business operations in an
19             Enterprise Zone or zones created under the  Illinois
20             Enterprise  Zone  Act and conducts substantially all
21             of its operations in an Enterprise Zone or zones;
22                  (L)  An  amount  equal   to   those   dividends
23             included   in   such  total  that  were  paid  by  a
24             corporation that conducts business operations  in  a
25             federally  designated Foreign Trade Zone or Sub-Zone
26             and  that  is  designated  a  High  Impact  Business
27             located  in  Illinois;   provided   that   dividends
28             eligible  for the deduction provided in subparagraph
29             (K) of paragraph 2 of this subsection shall  not  be
30             eligible  for  the  deduction  provided  under  this
31             subparagraph (L);
32                  (M)  For  any  taxpayer  that  is  a  financial
33             organization within the meaning of Section 304(c) of
34             this  Act,  an  amount  included  in  such  total as
 
                            -19-     LRB093 11179 BDD 12621 a
 1             interest income from a loan or loans  made  by  such
 2             taxpayer  to  a  borrower, to the extent that such a
 3             loan is secured by property which  is  eligible  for
 4             the Enterprise Zone Investment Credit.  To determine
 5             the  portion  of  a loan or loans that is secured by
 6             property eligible for a  Section  201(f)  investment
 7             credit  to the borrower, the entire principal amount
 8             of the loan or loans between the  taxpayer  and  the
 9             borrower  should  be  divided  into the basis of the
10             Section  201(f)  investment  credit  property  which
11             secures the loan or loans, using  for  this  purpose
12             the original basis of such property on the date that
13             it  was  placed  in  service in the Enterprise Zone.
14             The subtraction modification available  to  taxpayer
15             in  any  year  under  this  subsection shall be that
16             portion of the total interest paid by  the  borrower
17             with  respect  to  such  loan  attributable  to  the
18             eligible  property  as calculated under the previous
19             sentence;
20                  (M-1)  For any taxpayer  that  is  a  financial
21             organization within the meaning of Section 304(c) of
22             this  Act,  an  amount  included  in  such  total as
23             interest income from a loan or loans  made  by  such
24             taxpayer  to  a  borrower, to the extent that such a
25             loan is secured by property which  is  eligible  for
26             the  High  Impact  Business  Investment  Credit.  To
27             determine the portion of a loan  or  loans  that  is
28             secured  by  property  eligible for a Section 201(h)
29             investment  credit  to  the  borrower,  the   entire
30             principal  amount  of  the loan or loans between the
31             taxpayer and the borrower should be divided into the
32             basis  of  the  Section  201(h)  investment   credit
33             property  which secures the loan or loans, using for
34             this purpose the original basis of such property  on
 
                            -20-     LRB093 11179 BDD 12621 a
 1             the  date  that  it  was  placed  in  service  in  a
 2             federally  designated Foreign Trade Zone or Sub-Zone
 3             located in Illinois.  No taxpayer that  is  eligible
 4             for  the  deduction  provided in subparagraph (M) of
 5             paragraph (2) of this subsection shall  be  eligible
 6             for  the  deduction provided under this subparagraph
 7             (M-1).  The subtraction  modification  available  to
 8             taxpayers in any year under this subsection shall be
 9             that  portion  of  the  total  interest  paid by the
10             borrower with respect to such loan  attributable  to
11             the   eligible  property  as  calculated  under  the
12             previous sentence;
13                  (N)  Two times any contribution made during the
14             taxable year to a designated  zone  organization  to
15             the  extent that the contribution (i) qualifies as a
16             charitable  contribution  under  subsection  (c)  of
17             Section 170 of the Internal Revenue  Code  and  (ii)
18             must,  by  its terms, be used for a project approved
19             by the Department of Commerce and Community  Affairs
20             under  Section  11  of  the Illinois Enterprise Zone
21             Act;
22                  (O)  An amount equal to: (i)  85%  for  taxable
23             years  ending  on or before December 31, 1992, or, a
24             percentage equal to the percentage  allowable  under
25             Section  243(a)(1)  of  the Internal Revenue Code of
26             1986 for taxable years  ending  after  December  31,
27             1992,  of  the amount by which dividends included in
28             taxable income and received from a corporation  that
29             is  not  created  or organized under the laws of the
30             United States or any state or political  subdivision
31             thereof,  including,  for taxable years ending on or
32             after  December  31,  1988,  dividends  received  or
33             deemed  received  or  paid  or  deemed  paid   under
34             Sections  951  through  964  of the Internal Revenue
 
                            -21-     LRB093 11179 BDD 12621 a
 1             Code, exceed the amount of the modification provided
 2             under subparagraph (G)  of  paragraph  (2)  of  this
 3             subsection  (b)  which is related to such dividends;
 4             plus (ii) 100% of the  amount  by  which  dividends,
 5             included  in taxable income and received, including,
 6             for taxable years ending on or  after  December  31,
 7             1988,  dividends received or deemed received or paid
 8             or deemed paid under Sections 951 through 964 of the
 9             Internal Revenue Code,  from  any  such  corporation
10             specified  in  clause  (i)  that  would  but for the
11             provisions of Section 1504 (b) (3) of  the  Internal
12             Revenue   Code   be  treated  as  a  member  of  the
13             affiliated  group  which   includes   the   dividend
14             recipient,  exceed  the  amount  of the modification
15             provided under subparagraph (G) of paragraph (2)  of
16             this   subsection  (b)  which  is  related  to  such
17             dividends;
18                  (P)  An amount equal to any  contribution  made
19             to  a  job  training project established pursuant to
20             the Tax Increment Allocation Redevelopment Act;
21                  (Q)  An amount  equal  to  the  amount  of  the
22             deduction  used  to  compute  the federal income tax
23             credit for restoration of substantial  amounts  held
24             under  claim  of right for the taxable year pursuant
25             to Section 1341 of  the  Internal  Revenue  Code  of
26             1986;
27                  (R)  In  the  case  of an attorney-in-fact with
28             respect to whom  an  interinsurer  or  a  reciprocal
29             insurer  has  made the election under Section 835 of
30             the Internal Revenue Code, 26 U.S.C. 835, an  amount
31             equal  to the excess, if any, of the amounts paid or
32             incurred by that interinsurer or reciprocal  insurer
33             in the taxable year to the attorney-in-fact over the
34             deduction allowed to that interinsurer or reciprocal
 
                            -22-     LRB093 11179 BDD 12621 a
 1             insurer  with  respect to the attorney-in-fact under
 2             Section 835(b) of the Internal Revenue Code for  the
 3             taxable year;
 4                  (S)  For  taxable  years  ending  on  or  after
 5             December  31,  1997,  in  the case of a Subchapter S
 6             corporation, an  amount  equal  to  all  amounts  of
 7             income  allocable  to  a  shareholder subject to the
 8             Personal Property Tax Replacement Income Tax imposed
 9             by subsections (c) and (d) of Section  201  of  this
10             Act,  including  amounts  allocable to organizations
11             exempt from federal income tax by reason of  Section
12             501(a)   of   the   Internal   Revenue  Code.   This
13             subparagraph (S) is exempt from  the  provisions  of
14             Section 250;
15                  (T)  For taxable years 2001 and thereafter, for
16             the  taxable  year  in  which the bonus depreciation
17             deduction  (30%  of  the  adjusted  basis   of   the
18             qualified  property)  is  taken  on  the  taxpayer's
19             federal  income  tax  return under subsection (k) of
20             Section 168 of the Internal  Revenue  Code  and  for
21             each  applicable  taxable year thereafter, an amount
22             equal to "x", where:
23                       (1)  "y"  equals   the   amount   of   the
24                  depreciation  deduction  taken  for the taxable
25                  year  on  the  taxpayer's  federal  income  tax
26                  return  on  property  for   which   the   bonus
27                  depreciation  deduction  (30%  of  the adjusted
28                  basis of the qualified property) was  taken  in
29                  any year under subsection (k) of Section 168 of
30                  the  Internal  Revenue  Code, but not including
31                  the bonus depreciation deduction; and
32                       (2)  "x" equals "y" multiplied by  30  and
33                  then  divided  by  70  (or  "y"  multiplied  by
34                  0.429).
 
                            -23-     LRB093 11179 BDD 12621 a
 1                  The   aggregate   amount  deducted  under  this
 2             subparagraph in all taxable years for any one  piece
 3             of  property  may not exceed the amount of the bonus
 4             depreciation deduction (30% of the adjusted basis of
 5             the qualified property) taken on  that  property  on
 6             the  taxpayer's  federal  income  tax  return  under
 7             subsection  (k)  of  Section  168  of  the  Internal
 8             Revenue Code; and
 9                  (U)  If  the taxpayer reports a capital gain or
10             loss on the taxpayer's federal income tax return for
11             the taxable year based on  a  sale  or  transfer  of
12             property  for which the taxpayer was required in any
13             taxable year to make an addition modification  under
14             subparagraph  (E-10),  then  an amount equal to that
15             addition modification.
16                  The taxpayer is allowed to take  the  deduction
17             under  this  subparagraph  only once with respect to
18             any one piece of property.
19             (3)  Special rule.  For purposes  of  paragraph  (2)
20        (A),  "gross  income"  in  the  case  of a life insurance
21        company, for tax years ending on and after  December  31,
22        1994,  shall  mean  the  gross  investment income for the
23        taxable year.

24        (c)  Trusts and estates.
25             (1)  In general.  In the case of a trust or  estate,
26        base  income  means  an  amount  equal  to the taxpayer's
27        taxable income  for  the  taxable  year  as  modified  by
28        paragraph (2).
29             (2)  Modifications.   Subject  to  the provisions of
30        paragraph  (3),  the  taxable  income  referred   to   in
31        paragraph (1) shall be modified by adding thereto the sum
32        of the following amounts:
33                  (A)  An  amount  equal  to  all amounts paid or
34             accrued to the taxpayer  as  interest  or  dividends
 
                            -24-     LRB093 11179 BDD 12621 a
 1             during  the taxable year to the extent excluded from
 2             gross income in the computation of taxable income;
 3                  (B)  In the case of (i) an estate, $600; (ii) a
 4             trust which,  under  its  governing  instrument,  is
 5             required  to distribute all of its income currently,
 6             $300; and (iii) any other trust, $100, but  in  each
 7             such  case,  only  to  the  extent  such  amount was
 8             deducted in the computation of taxable income;
 9                  (C)  An amount  equal  to  the  amount  of  tax
10             imposed  by  this  Act  to  the extent deducted from
11             gross income in the computation  of  taxable  income
12             for the taxable year;
13                  (D)  The  amount  of  any  net  operating  loss
14             deduction taken in arriving at taxable income, other
15             than  a  net  operating  loss carried forward from a
16             taxable year ending prior to December 31, 1986;
17                  (E)  For taxable years in which a net operating
18             loss carryback or carryforward from a  taxable  year
19             ending  prior  to December 31, 1986 is an element of
20             taxable income under paragraph (1) of subsection (e)
21             or subparagraph (E) of paragraph (2)  of  subsection
22             (e),  the  amount  by  which  addition modifications
23             other than those provided by this  subparagraph  (E)
24             exceeded  subtraction  modifications in such taxable
25             year, with the following limitations applied in  the
26             order that they are listed:
27                       (i)  the addition modification relating to
28                  the  net operating loss carried back or forward
29                  to the  taxable  year  from  any  taxable  year
30                  ending  prior  to  December  31,  1986 shall be
31                  reduced by the amount of addition  modification
32                  under  this  subparagraph  (E) which related to
33                  that net operating loss  and  which  was  taken
34                  into  account in calculating the base income of
 
                            -25-     LRB093 11179 BDD 12621 a
 1                  an earlier taxable year, and
 2                       (ii)  the addition  modification  relating
 3                  to  the  net  operating  loss  carried  back or
 4                  forward to the taxable year  from  any  taxable
 5                  year  ending  prior  to December 31, 1986 shall
 6                  not exceed the  amount  of  such  carryback  or
 7                  carryforward;
 8                  For  taxable  years  in  which  there  is a net
 9             operating loss carryback or carryforward  from  more
10             than one other taxable year ending prior to December
11             31, 1986, the addition modification provided in this
12             subparagraph  (E)  shall  be  the sum of the amounts
13             computed   independently   under    the    preceding
14             provisions  of  this  subparagraph (E) for each such
15             taxable year;
16                  (F)  For  taxable  years  ending  on  or  after
17             January 1, 1989, an amount equal to the tax deducted
18             pursuant to Section 164 of the Internal Revenue Code
19             if the trust or estate is claiming the same tax  for
20             purposes  of  the  Illinois foreign tax credit under
21             Section 601 of this Act;
22                  (G)  An amount  equal  to  the  amount  of  the
23             capital  gain deduction allowable under the Internal
24             Revenue Code, to  the  extent  deducted  from  gross
25             income in the computation of taxable income;
26                  (G-5)  For  taxable years ending after December
27             31,  1997,  an  amount   equal   to   any   eligible
28             remediation  costs that the trust or estate deducted
29             in computing adjusted gross income and for which the
30             trust or estate claims a credit under subsection (l)
31             of Section 201;
32                  (G-10)  For taxable years 2001 and  thereafter,
33             an  amount equal to the bonus depreciation deduction
34             (30%  of  the  adjusted  basis  of   the   qualified
 
                            -26-     LRB093 11179 BDD 12621 a
 1             property) taken on the taxpayer's federal income tax
 2             return  for the taxable year under subsection (k) of
 3             Section 168 of the Internal Revenue Code; and
 4                  (G-11)  If the taxpayer reports a capital  gain
 5             or  loss on the taxpayer's federal income tax return
 6             for the taxable year based on a sale or transfer  of
 7             property  for which the taxpayer was required in any
 8             taxable year to make an addition modification  under
 9             subparagraph  (G-10),  then  an  amount equal to the
10             aggregate amount of  the  deductions  taken  in  all
11             taxable years under subparagraph (R) with respect to
12             that property.;
13                  The  taxpayer  is required to make the addition
14             modification under this subparagraph only once  with
15             respect to any one piece of property;
16        and  by  deducting  from the total so obtained the sum of
17        the following amounts:
18                  (H)  An amount equal to all amounts included in
19             such total pursuant to the  provisions  of  Sections
20             402(a),  402(c),  403(a), 403(b), 406(a), 407(a) and
21             408 of the Internal Revenue Code or included in such
22             total as distributions under the provisions  of  any
23             retirement  or  disability plan for employees of any
24             governmental agency or unit, or retirement  payments
25             to  retired partners, which payments are excluded in
26             computing  net  earnings  from  self  employment  by
27             Section  1402  of  the  Internal  Revenue  Code  and
28             regulations adopted pursuant thereto;
29                  (I)  The valuation limitation amount;
30                  (J)  An amount equal to the amount of  any  tax
31             imposed  by  this  Act  which  was  refunded  to the
32             taxpayer and included in such total for the  taxable
33             year;
34                  (K)  An amount equal to all amounts included in
 
                            -27-     LRB093 11179 BDD 12621 a
 1             taxable  income  as  modified  by subparagraphs (A),
 2             (B), (C), (D), (E), (F) and  (G)  which  are  exempt
 3             from  taxation by this State either by reason of its
 4             statutes  or  Constitution  or  by  reason  of   the
 5             Constitution,  treaties  or  statutes  of the United
 6             States; provided that, in the case of any statute of
 7             this State that exempts income derived from bonds or
 8             other obligations from the tax  imposed  under  this
 9             Act,  the  amount exempted shall be the interest net
10             of bond premium amortization;
11                  (L)  With  the   exception   of   any   amounts
12             subtracted  under  subparagraph (K), an amount equal
13             to the sum of all amounts disallowed  as  deductions
14             by  (i)  Sections  171(a)  (2)  and 265(a)(2) of the
15             Internal Revenue Code, as now or hereafter  amended,
16             and  all  amounts  of expenses allocable to interest
17             and disallowed as deductions by  Section  265(1)  of
18             the  Internal  Revenue  Code  of  1954,  as  now  or
19             hereafter amended; and (ii) for taxable years ending
20             on  or  after  August  13, 1999, Sections 171(a)(2),
21             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
22             Revenue Code; the provisions  of  this  subparagraph
23             are exempt from the provisions of Section 250;
24                  (M)  An   amount   equal   to  those  dividends
25             included  in  such  total  which  were  paid  by   a
26             corporation which conducts business operations in an
27             Enterprise  Zone or zones created under the Illinois
28             Enterprise Zone Act and conducts  substantially  all
29             of its operations in an Enterprise Zone or Zones;
30                  (N)  An  amount  equal to any contribution made
31             to a job training project  established  pursuant  to
32             the Tax Increment Allocation Redevelopment Act;
33                  (O)  An   amount   equal   to  those  dividends
34             included  in  such  total  that  were  paid   by   a
 
                            -28-     LRB093 11179 BDD 12621 a
 1             corporation  that  conducts business operations in a
 2             federally designated Foreign Trade Zone or  Sub-Zone
 3             and  that  is  designated  a  High  Impact  Business
 4             located   in   Illinois;   provided  that  dividends
 5             eligible for the deduction provided in  subparagraph
 6             (M) of paragraph (2) of this subsection shall not be
 7             eligible  for  the  deduction  provided  under  this
 8             subparagraph (O);
 9                  (P)  An  amount  equal  to  the  amount  of the
10             deduction used to compute  the  federal  income  tax
11             credit  for  restoration of substantial amounts held
12             under claim of right for the taxable  year  pursuant
13             to  Section  1341  of  the  Internal Revenue Code of
14             1986;
15                  (Q)  For taxable year 1999 and  thereafter,  an
16             amount equal to the amount of any (i) distributions,
17             to the extent includible in gross income for federal
18             income tax purposes, made to the taxpayer because of
19             his  or  her  status  as a victim of persecution for
20             racial or religious reasons by Nazi Germany  or  any
21             other  Axis  regime  or as an heir of the victim and
22             (ii) items of income, to the  extent  includible  in
23             gross   income  for  federal  income  tax  purposes,
24             attributable to, derived from or in any way  related
25             to  assets  stolen  from,  hidden from, or otherwise
26             lost to  a  victim  of  persecution  for  racial  or
27             religious  reasons by Nazi Germany or any other Axis
28             regime immediately prior to, during, and immediately
29             after World War II, including, but not  limited  to,
30             interest  on  the  proceeds  receivable as insurance
31             under policies issued to a victim of persecution for
32             racial or religious reasons by Nazi Germany  or  any
33             other  Axis  regime  by European insurance companies
34             immediately  prior  to  and  during  World  War  II;
 
                            -29-     LRB093 11179 BDD 12621 a
 1             provided, however,  this  subtraction  from  federal
 2             adjusted  gross  income  does  not  apply  to assets
 3             acquired with such assets or with the proceeds  from
 4             the  sale  of  such  assets; provided, further, this
 5             paragraph shall only apply to a taxpayer who was the
 6             first recipient of such assets after their  recovery
 7             and  who  is  a victim of  persecution for racial or
 8             religious reasons by Nazi Germany or any other  Axis
 9             regime  or  as an heir of the victim.  The amount of
10             and  the  eligibility  for  any  public  assistance,
11             benefit, or similar entitlement is not  affected  by
12             the   inclusion  of  items  (i)  and  (ii)  of  this
13             paragraph in gross income  for  federal  income  tax
14             purposes.   This   paragraph   is  exempt  from  the
15             provisions of Section 250;
16                  (R)  For taxable years 2001 and thereafter, for
17             the taxable year in  which  the  bonus  depreciation
18             deduction   (30%   of  the  adjusted  basis  of  the
19             qualified  property)  is  taken  on  the  taxpayer's
20             federal income tax return under  subsection  (k)  of
21             Section  168  of  the  Internal Revenue Code and for
22             each applicable taxable year thereafter,  an  amount
23             equal to "x", where:
24                       (1)  "y"   equals   the   amount   of  the
25                  depreciation deduction taken  for  the  taxable
26                  year  on  the  taxpayer's  federal  income  tax
27                  return   on   property   for  which  the  bonus
28                  depreciation deduction  (30%  of  the  adjusted
29                  basis  of  the qualified property) was taken in
30                  any year under subsection (k) of Section 168 of
31                  the Internal Revenue Code,  but  not  including
32                  the bonus depreciation deduction; and
33                       (2)  "x"  equals  "y" multiplied by 30 and
34                  then  divided  by  70  (or  "y"  multiplied  by
 
                            -30-     LRB093 11179 BDD 12621 a
 1                  0.429).
 2                  The  aggregate  amount  deducted   under   this
 3             subparagraph  in all taxable years for any one piece
 4             of property may not exceed the amount of  the  bonus
 5             depreciation deduction (30% of the adjusted basis of
 6             the  qualified  property)  taken on that property on
 7             the  taxpayer's  federal  income  tax  return  under
 8             subsection  (k)  of  Section  168  of  the  Internal
 9             Revenue Code; and
10                  (S)  If the taxpayer reports a capital gain  or
11             loss on the taxpayer's federal income tax return for
12             the  taxable  year  based  on  a sale or transfer of
13             property for which the taxpayer was required in  any
14             taxable  year to make an addition modification under
15             subparagraph (G-10), then an amount  equal  to  that
16             addition modification.
17                  The  taxpayer  is allowed to take the deduction
18             under this subparagraph only once  with  respect  to
19             any one piece of property.
20             (3)  Limitation.   The  amount  of  any modification
21        otherwise required under  this  subsection  shall,  under
22        regulations  prescribed by the Department, be adjusted by
23        any amounts included therein which  were  properly  paid,
24        credited,  or  required to be distributed, or permanently
25        set aside for charitable purposes pursuant   to  Internal
26        Revenue Code Section 642(c) during the taxable year.

27        (d)  Partnerships.
28             (1)  In  general. In the case of a partnership, base
29        income means an amount equal to  the  taxpayer's  taxable
30        income for the taxable year as modified by paragraph (2).
31             (2)  Modifications.  The  taxable income referred to
32        in paragraph (1) shall be modified by adding thereto  the
33        sum of the following amounts:
34                  (A)  An  amount  equal  to  all amounts paid or
 
                            -31-     LRB093 11179 BDD 12621 a
 1             accrued to the taxpayer  as  interest  or  dividends
 2             during  the taxable year to the extent excluded from
 3             gross income in the computation of taxable income;
 4                  (B)  An amount  equal  to  the  amount  of  tax
 5             imposed  by  this  Act  to  the extent deducted from
 6             gross income for the taxable year;
 7                  (C)  The amount of deductions  allowed  to  the
 8             partnership  pursuant  to  Section  707  (c)  of the
 9             Internal Revenue Code  in  calculating  its  taxable
10             income;
11                  (D)  An  amount  equal  to  the  amount  of the
12             capital gain deduction allowable under the  Internal
13             Revenue  Code,  to  the  extent  deducted from gross
14             income in the computation of taxable income;
15                  (D-5)  For taxable years 2001  and  thereafter,
16             an  amount equal to the bonus depreciation deduction
17             (30%  of  the  adjusted  basis  of   the   qualified
18             property) taken on the taxpayer's federal income tax
19             return  for the taxable year under subsection (k) of
20             Section 168 of the Internal Revenue Code; and
21                  (D-6)  If the taxpayer reports a  capital  gain
22             or  loss on the taxpayer's federal income tax return
23             for the taxable year based on a sale or transfer  of
24             property  for which the taxpayer was required in any
25             taxable year to make an addition modification  under
26             subparagraph  (D-5),  then  an  amount  equal to the
27             aggregate amount of  the  deductions  taken  in  all
28             taxable years under subparagraph (O) with respect to
29             that property.;
30                  The  taxpayer  is required to make the addition
31             modification under this subparagraph only once  with
32             respect to any one piece of property;
33        and by deducting from the total so obtained the following
34        amounts:
 
                            -32-     LRB093 11179 BDD 12621 a
 1                  (E)  The valuation limitation amount;
 2                  (F)  An  amount  equal to the amount of any tax
 3             imposed by  this  Act  which  was  refunded  to  the
 4             taxpayer  and included in such total for the taxable
 5             year;
 6                  (G)  An amount equal to all amounts included in
 7             taxable income as  modified  by  subparagraphs  (A),
 8             (B),  (C)  and (D) which are exempt from taxation by
 9             this State either  by  reason  of  its  statutes  or
10             Constitution  or  by  reason  of  the  Constitution,
11             treaties  or statutes of the United States; provided
12             that, in the case of any statute of this State  that
13             exempts   income   derived   from   bonds  or  other
14             obligations from the tax imposed under this Act, the
15             amount exempted shall be the interest  net  of  bond
16             premium amortization;
17                  (H)  Any   income   of  the  partnership  which
18             constitutes personal service income  as  defined  in
19             Section  1348  (b)  (1) of the Internal Revenue Code
20             (as in effect December 31,  1981)  or  a  reasonable
21             allowance  for  compensation  paid  or  accrued  for
22             services  rendered  by  partners to the partnership,
23             whichever is greater;
24                  (I)  An amount equal to all amounts  of  income
25             distributable  to  an entity subject to the Personal
26             Property  Tax  Replacement  Income  Tax  imposed  by
27             subsections (c) and (d) of Section 201 of  this  Act
28             including  amounts  distributable  to  organizations
29             exempt  from federal income tax by reason of Section
30             501(a) of the Internal Revenue Code;
31                  (J)  With  the   exception   of   any   amounts
32             subtracted  under  subparagraph (G), an amount equal
33             to the sum of all amounts disallowed  as  deductions
34             by  (i)  Sections  171(a)  (2),  and  265(2)  of the
 
                            -33-     LRB093 11179 BDD 12621 a
 1             Internal Revenue Code of 1954, as now  or  hereafter
 2             amended,  and  all  amounts of expenses allocable to
 3             interest and disallowed  as  deductions  by  Section
 4             265(1)  of  the  Internal  Revenue  Code,  as now or
 5             hereafter amended; and (ii) for taxable years ending
 6             on or after August  13,  1999,  Sections  171(a)(2),
 7             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
 8             Revenue  Code;  the  provisions of this subparagraph
 9             are exempt from the provisions of Section 250;
10                  (K)  An  amount  equal   to   those   dividends
11             included   in  such  total  which  were  paid  by  a
12             corporation which conducts business operations in an
13             Enterprise Zone or zones created under the  Illinois
14             Enterprise  Zone  Act,  enacted  by the 82nd General
15             Assembly, and  conducts  substantially  all  of  its
16             operations in an Enterprise Zone or Zones;
17                  (L)  An  amount  equal to any contribution made
18             to a job training project  established  pursuant  to
19             the   Real   Property   Tax   Increment   Allocation
20             Redevelopment Act;
21                  (M)  An   amount   equal   to  those  dividends
22             included  in  such  total  that  were  paid   by   a
23             corporation  that  conducts business operations in a
24             federally designated Foreign Trade Zone or  Sub-Zone
25             and  that  is  designated  a  High  Impact  Business
26             located   in   Illinois;   provided  that  dividends
27             eligible for the deduction provided in  subparagraph
28             (K) of paragraph (2) of this subsection shall not be
29             eligible  for  the  deduction  provided  under  this
30             subparagraph (M);
31                  (N)  An  amount  equal  to  the  amount  of the
32             deduction used to compute  the  federal  income  tax
33             credit  for  restoration of substantial amounts held
34             under claim of right for the taxable  year  pursuant
 
                            -34-     LRB093 11179 BDD 12621 a
 1             to  Section  1341  of  the  Internal Revenue Code of
 2             1986;
 3                  (O)  For taxable years 2001 and thereafter, for
 4             the taxable year in  which  the  bonus  depreciation
 5             deduction   (30%   of  the  adjusted  basis  of  the
 6             qualified  property)  is  taken  on  the  taxpayer's
 7             federal income tax return under  subsection  (k)  of
 8             Section  168  of  the  Internal Revenue Code and for
 9             each applicable taxable year thereafter,  an  amount
10             equal to "x", where:
11                       (1)  "y"   equals   the   amount   of  the
12                  depreciation deduction taken  for  the  taxable
13                  year  on  the  taxpayer's  federal  income  tax
14                  return   on   property   for  which  the  bonus
15                  depreciation deduction  (30%  of  the  adjusted
16                  basis  of  the qualified property) was taken in
17                  any year under subsection (k) of Section 168 of
18                  the Internal Revenue Code,  but  not  including
19                  the bonus depreciation deduction; and
20                       (2)  "x"  equals  "y" multiplied by 30 and
21                  then  divided  by  70  (or  "y"  multiplied  by
22                  0.429).
23                  The  aggregate  amount  deducted   under   this
24             subparagraph  in all taxable years for any one piece
25             of property may not exceed the amount of  the  bonus
26             depreciation deduction (30% of the adjusted basis of
27             the  qualified  property)  taken on that property on
28             the  taxpayer's  federal  income  tax  return  under
29             subsection  (k)  of  Section  168  of  the  Internal
30             Revenue Code; and
31                  (P)  If the taxpayer reports a capital gain  or
32             loss on the taxpayer's federal income tax return for
33             the  taxable  year  based  on  a sale or transfer of
34             property for which the taxpayer was required in  any
 
                            -35-     LRB093 11179 BDD 12621 a
 1             taxable  year to make an addition modification under
 2             subparagraph (D-5), then an  amount  equal  to  that
 3             addition modification.
 4                  The  taxpayer  is allowed to take the deduction
 5             under this subparagraph only once  with  respect  to
 6             any one piece of property.

 7        (e)  Gross income; adjusted gross income; taxable income.
 8             (1)  In  general.   Subject  to  the  provisions  of
 9        paragraph  (2)  and  subsection  (b) (3), for purposes of
10        this Section  and  Section  803(e),  a  taxpayer's  gross
11        income,  adjusted gross income, or taxable income for the
12        taxable year shall  mean  the  amount  of  gross  income,
13        adjusted   gross   income   or  taxable  income  properly
14        reportable  for  federal  income  tax  purposes  for  the
15        taxable year under the provisions of the Internal Revenue
16        Code. Taxable income may be less than zero. However,  for
17        taxable  years  ending on or after December 31, 1986, net
18        operating loss carryforwards from  taxable  years  ending
19        prior  to  December  31,  1986, may not exceed the sum of
20        federal taxable income for the taxable  year  before  net
21        operating  loss  deduction,  plus  the excess of addition
22        modifications  over  subtraction  modifications  for  the
23        taxable year.  For taxable years ending prior to December
24        31, 1986, taxable income may never be an amount in excess
25        of the net operating loss for the taxable year as defined
26        in subsections (c) and (d) of Section 172 of the Internal
27        Revenue Code, provided that  when  taxable  income  of  a
28        corporation  (other  than  a  Subchapter  S corporation),
29        trust,  or  estate  is  less  than  zero   and   addition
30        modifications,  other than those provided by subparagraph
31        (E) of paragraph (2) of subsection (b)  for  corporations
32        or  subparagraph  (E)  of paragraph (2) of subsection (c)
33        for trusts and estates, exceed subtraction modifications,
34        an  addition  modification  must  be  made  under   those
 
                            -36-     LRB093 11179 BDD 12621 a
 1        subparagraphs  for  any  other  taxable year to which the
 2        taxable income less than zero  (net  operating  loss)  is
 3        applied under Section 172 of the Internal Revenue Code or
 4        under   subparagraph   (E)   of  paragraph  (2)  of  this
 5        subsection (e) applied in conjunction with Section 172 of
 6        the Internal Revenue Code.
 7             (2)  Special rule.  For purposes of paragraph (1) of
 8        this subsection, the taxable income  properly  reportable
 9        for federal income tax purposes shall mean:
10                  (A)  Certain  life insurance companies.  In the
11             case of a life insurance company subject to the  tax
12             imposed by Section 801 of the Internal Revenue Code,
13             life  insurance  company  taxable  income,  plus the
14             amount of distribution  from  pre-1984  policyholder
15             surplus accounts as calculated under Section 815a of
16             the Internal Revenue Code;
17                  (B)  Certain other insurance companies.  In the
18             case  of  mutual  insurance companies subject to the
19             tax imposed by Section 831 of the  Internal  Revenue
20             Code, insurance company taxable income;
21                  (C)  Regulated  investment  companies.   In the
22             case of a regulated investment  company  subject  to
23             the  tax  imposed  by  Section  852  of the Internal
24             Revenue Code, investment company taxable income;
25                  (D)  Real estate  investment  trusts.   In  the
26             case  of  a  real estate investment trust subject to
27             the tax imposed  by  Section  857  of  the  Internal
28             Revenue  Code,  real estate investment trust taxable
29             income;
30                  (E)  Consolidated corporations.  In the case of
31             a corporation which is a  member  of  an  affiliated
32             group  of  corporations filing a consolidated income
33             tax return for the taxable year for  federal  income
34             tax  purposes,  taxable income determined as if such
 
                            -37-     LRB093 11179 BDD 12621 a
 1             corporation had filed a separate return for  federal
 2             income  tax  purposes  for the taxable year and each
 3             preceding taxable year for which it was a member  of
 4             an   affiliated   group.   For   purposes   of  this
 5             subparagraph, the taxpayer's separate taxable income
 6             shall be determined as if the election  provided  by
 7             Section  243(b) (2) of the Internal Revenue Code had
 8             been in effect for all such years;
 9                  (F)  Cooperatives.    In   the   case   of    a
10             cooperative  corporation or association, the taxable
11             income of such organization determined in accordance
12             with the provisions of Section 1381 through 1388  of
13             the Internal Revenue Code;
14                  (G)  Subchapter  S  corporations.   In the case
15             of: (i) a Subchapter S corporation for  which  there
16             is  in effect an election for the taxable year under
17             Section 1362  of  the  Internal  Revenue  Code,  the
18             taxable  income  of  such  corporation determined in
19             accordance with  Section  1363(b)  of  the  Internal
20             Revenue  Code, except that taxable income shall take
21             into account  those  items  which  are  required  by
22             Section  1363(b)(1)  of the Internal Revenue Code to
23             be  separately  stated;  and  (ii)  a  Subchapter  S
24             corporation for which there is in effect  a  federal
25             election  to  opt  out  of  the  provisions  of  the
26             Subchapter  S  Revision Act of 1982 and have applied
27             instead the prior federal Subchapter S rules  as  in
28             effect  on  July 1, 1982, the taxable income of such
29             corporation  determined  in  accordance   with   the
30             federal  Subchapter  S rules as in effect on July 1,
31             1982; and
32                  (H)  Partnerships.    In   the   case   of    a
33             partnership, taxable income determined in accordance
34             with  Section  703  of  the  Internal  Revenue Code,
 
                            -38-     LRB093 11179 BDD 12621 a
 1             except that taxable income shall take  into  account
 2             those  items which are required by Section 703(a)(1)
 3             to be separately stated but  which  would  be  taken
 4             into  account  by  an  individual in calculating his
 5             taxable income.

 6        (f)  Valuation limitation amount.
 7             (1)  In general.  The  valuation  limitation  amount
 8        referred  to  in subsections (a) (2) (G), (c) (2) (I) and
 9        (d)(2) (E) is an amount equal to:
10                  (A)  The  sum  of  the   pre-August   1,   1969
11             appreciation  amounts  (to  the extent consisting of
12             gain reportable under the provisions of Section 1245
13             or 1250  of  the  Internal  Revenue  Code)  for  all
14             property  in respect of which such gain was reported
15             for the taxable year; plus
16                  (B)  The  lesser  of  (i)  the   sum   of   the
17             pre-August  1,  1969  appreciation  amounts  (to the
18             extent consisting of capital gain) for all  property
19             in  respect  of  which  such  gain  was reported for
20             federal income tax purposes for the taxable year, or
21             (ii) the net capital  gain  for  the  taxable  year,
22             reduced  in  either  case by any amount of such gain
23             included in the amount determined  under  subsection
24             (a) (2) (F) or (c) (2) (H).
25             (2)  Pre-August 1, 1969 appreciation amount.
26                  (A)  If  the  fair  market  value  of  property
27             referred   to   in   paragraph   (1)   was   readily
28             ascertainable  on  August 1, 1969, the pre-August 1,
29             1969 appreciation amount for such  property  is  the
30             lesser  of  (i) the excess of such fair market value
31             over the taxpayer's basis (for determining gain) for
32             such property on that  date  (determined  under  the
33             Internal Revenue Code as in effect on that date), or
34             (ii)  the  total  gain  realized  and reportable for
 
                            -39-     LRB093 11179 BDD 12621 a
 1             federal income tax purposes in respect of the  sale,
 2             exchange or other disposition of such property.
 3                  (B)  If  the  fair  market  value  of  property
 4             referred   to  in  paragraph  (1)  was  not  readily
 5             ascertainable on August 1, 1969, the  pre-August  1,
 6             1969  appreciation  amount for such property is that
 7             amount which bears the same ratio to the total  gain
 8             reported  in  respect  of  the  property for federal
 9             income tax purposes for the  taxable  year,  as  the
10             number  of  full calendar months in that part of the
11             taxpayer's holding period for  the  property  ending
12             July  31,  1969 bears to the number of full calendar
13             months in the taxpayer's entire holding  period  for
14             the property.
15                  (C)  The   Department   shall   prescribe  such
16             regulations as may be necessary  to  carry  out  the
17             purposes of this paragraph.

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

21        (h)  Legislative intention.  Except as expressly provided
22    by   this   Section   there  shall  be  no  modifications  or
23    limitations on the amounts of income, gain, loss or deduction
24    taken into account  in  determining  gross  income,  adjusted
25    gross  income  or  taxable  income  for  federal  income  tax
26    purposes for the taxable year, or in the amount of such items
27    entering  into  the computation of base income and net income
28    under this Act for such taxable year, whether in  respect  of
29    property values as of August 1, 1969 or otherwise.
30    (Source:  P.A.  91-192,  eff.  7-20-99; 91-205, eff. 7-20-99;
31    91-357, eff. 7-29-99;  91-541,  eff.  8-13-99;  91-676,  eff.
32    12-23-99;  91-845,  eff. 6-22-00; 91-913, eff. 1-1-01; 92-16,
33    eff. 6-28-01; 92-244,  eff.  8-3-01;  92-439,  eff.  8-17-01;
 
                            -40-     LRB093 11179 BDD 12621 a
 1    92-603,  eff.  6-28-02;  92-626,  eff.  7-11-02; 92-651, eff.
 2    7-11-02; 92-846, eff. 8-23-02; revised 11-15-02.)

 3        Section 15-15.  The  Property  Tax  Code  is  amended  by
 4    changing  Sections  18-255,  20-15,  and  21-30 and by adding
 5    Section 18-178 as follows:

 6        (35 ILCS 200/18-178 new)
 7        Sec.   18-178.  Educational   purposes   tax   abatement.
 8    Beginning with taxes levied for 2003 (payable in  2004),  the
 9    county   clerk   must   determine  the  final  extension  for
10    educational purposes for all taxable  property  in  a  school
11    district located in the county or for the taxable property of
12    that  part of a school district located in the county, taking
13    into account the maximum rate, levy, and extension authorized
14    under the Property Tax Extension Limitation Law, the Truth in
15    Taxation Law, and any other statute. The  county  clerk  must
16    then  abate  the  extension for educational purposes for each
17    school district or part of a school district in the county in
18    the amount of the school district property tax  relief  grant
19    certified  to  the  county  clerk for that school district or
20    part of a school district by the Department of Revenue  under
21    Section  6z-59  of  the  State  Finance  Act.  When the final
22    extension for educational purposes has  been  determined  and
23    abated,  the  county  clerk  must  notify  the  Department of
24    Revenue.
25        The county clerk must determine the reduced amount of the
26    tax for educational purposes  to  be  billed  by  the  county
27    collector  and  paid  by  each  taxpayer  in  a  given school
28    district by  re-calculating  the  tax  rate  for  educational
29    purposes  for  that  school  district  based  on  the reduced
30    extension amount  after  abatement.  This  reduced  extension
31    amount  shall  be used only for determining the amount of the
32    tax bill. The extension amount for  educational  purposes  as
 
                            -41-     LRB093 11179 BDD 12621 a
 1    originally  calculated before abatement is the official final
 2    extension for educational purposes and must be used  for  all
 3    other purposes, including determining the maximum rate, levy,
 4    and  extension  authorized  under  the Property Tax Extension
 5    Limitation Law, the Truth in  Taxation  Law,  and  any  other
 6    statute  and  the maximum amount of tax anticipation warrants
 7    under Section 17-16 of the School Code.

 8        (35 ILCS 200/18-255)
 9        Sec. 18-255.  Abstract  of  assessments  and  extensions.
10    When  the  collector's  books are completed, the county clerk
11    shall  make  a  complete  statement  of  the  assessment  and
12    extensions,  in  conformity  to  the  instructions   of   the
13    Department.  The  clerk  shall  certify  the statement to the
14    Department. Beginning with the 2003 levy year, the Department
15    shall require the statement to include a separate listing  of
16    the extensions subject to abatement under Section 18-178.
17    (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)

18        (35 ILCS 200/20-15)
19        Sec.  20-15.   Information on bill or separate statement.
20    The amount of tax  due  and  rates  shown  on  the  tax  bill
21    pursuant  to this Section shall be net of any abatement under
22    Section 18-178.  There shall be printed on each bill, or on a
23    separate slip which shall be mailed with the bill:
24             (a)  a statement itemizing the rate at  which  taxes
25        have  been  extended  for each of the taxing districts in
26        the county in whose district the property is located, and
27        in those counties utilizing  electronic  data  processing
28        equipment  the  dollar  amount of tax due from the person
29        assessed allocable to each  of  those  taxing  districts,
30        including  a  separate  statement of the dollar amount of
31        tax due which is allocable to  a  tax  levied  under  the
32        Illinois  Local Library Act or to any other tax levied by
 
                            -42-     LRB093 11179 BDD 12621 a
 1        a municipality or township for public library purposes,
 2             (b)  a separate statement for  each  of  the  taxing
 3        districts  of  the  dollar  amount  of  tax  due which is
 4        allocable to a tax levied under the Illinois Pension Code
 5        or to any other tax levied by a municipality or  township
 6        for public pension or retirement purposes,
 7             (c)  the total tax rate,
 8             (d)  the total amount of tax due, and
 9             (e)  the  amount  by which the total tax and the tax
10        allocable  to  each  taxing  district  differs  from  the
11        taxpayer's last prior tax bill, and
12             (f)  the amount of tax abated under  Section  18-178
13        labeled "Your School Tax Refund".
14        The  county treasurer shall ensure that only those taxing
15    districts in which a parcel of property is located  shall  be
16    listed on the bill for that property.
17        In all counties the statement shall also provide:
18             (1)  the  property  index  number  or other suitable
19        description,
20             (2)  the assessment of the property,
21             (3)  the equalization factors imposed by the  county
22        and by the Department, and
23             (4)  the  equalized  assessment  resulting  from the
24        application of the  equalization  factors  to  the  basic
25        assessment.
26        In  all  counties  which  do  not  classify  property for
27    purposes of taxation, for property on which a  single  family
28    residence  is  situated  the  statement  shall also include a
29    statement to reflect the fair cash value determined  for  the
30    property.   In  all  counties  which  classify  property  for
31    purposes of taxation in accordance with Section 4 of  Article
32    IX  of  the Illinois Constitution, for parcels of residential
33    property  in  the  lowest   assessment   classification   the
34    statement  shall also include a statement to reflect the fair
 
                            -43-     LRB093 11179 BDD 12621 a
 1    cash value determined for the property.
 2        In all counties, the statement shall include  information
 3    that  certain  taxpayers  may  be  eligible  for  the  Senior
 4    Citizens   and  Disabled  Persons  Property  Tax  Relief  and
 5    Pharmaceutical  Assistance  Act  and  that  applications  are
 6    available from the Illinois Department of Revenue.
 7        In  counties  which  use  the  estimated  or  accelerated
 8    billing methods, these statements shall only be provided with
 9    the final installment of taxes due, except that the statement
10    under item (f) shall be included with  both  installments  in
11    those   counties   under  estimated  or  accelerated  billing
12    methods, the first billing showing the amount  deducted  from
13    the  first  installment,  and  the  final billing showing the
14    total tax abated for the levy year under Section 18-178.  The
15    provisions of this Section create a mandatory statutory duty.
16    They  are  not merely directory or discretionary. The failure
17    or neglect of the collector to mail the bill, or the  failure
18    of  the  taxpayer  to  receive the bill, shall not affect the
19    validity of any tax, or the liability for the payment of  any
20    tax.
21    (Source: P.A. 91-699, eff. 1-1-01.)

22        (35 ILCS 200/21-30)
23        Sec.  21-30.  Accelerated  billing. Except as provided in
24    this Section and Section 21-40, in counties with 3,000,000 or
25    more inhabitants, by January 31 annually, estimated tax bills
26    setting out the first installment of property taxes  for  the
27    preceding  year,  payable in that year, shall be prepared and
28    mailed. The first installment of taxes on the  estimated  tax
29    bills  shall be computed at 50% of the total of each tax bill
30    before the abatement of taxes under Section  18-178  for  the
31    preceding  year,  less  an estimate of one half of the school
32    district property tax  relief  grant  for  the  current  year
33    determined based on information provided by the Department of
 
                            -44-     LRB093 11179 BDD 12621 a
 1    Revenue  and  any  other information available.  If, prior to
 2    the preparation of the estimated tax bills, a certificate  of
 3    error  has  been  either  approved  by  a  court on or before
 4    November 30 of the preceding year or  certified  pursuant  to
 5    Section 14-15 on or before November 30 of the preceding year,
 6    then  the  first  installment  of  taxes on the estimated tax
 7    bills shall be computed at 50% of the total taxes before  the
 8    abatement  of  taxes  under  Section 18-178 for the preceding
 9    year as corrected  by  the  certificate  of  error,  less  an
10    estimate  of  one  half  of  the school district property tax
11    relief  grant  for  the  current  year  determined  based  on
12    information provided by the Department  of  Revenue  and  any
13    other  information available. By June 30 annually, actual tax
14    bills shall be prepared and mailed. These bills shall set out
15    total taxes due and the amount of estimated taxes  billed  in
16    the  first  installment, and shall state the balance of taxes
17    due for that year as represented  by  the  sum  derived  from
18    subtracting  the  amount  of  the  first installment from the
19    total taxes due for that year.
20        The county board may provide by  ordinance,  in  counties
21    with 3,000,000 or more inhabitants, for taxes to be paid in 4
22    installments.   For  the levy year for which the ordinance is
23    first effective and each subsequent year, estimated tax bills
24    setting out the first, second, and third installment of taxes
25    for the preceding  year,  payable  in  that  year,  shall  be
26    prepared  and  mailed  not  later  than the date specified by
27    ordinance.  Each installment on estimated tax bills shall  be
28    computed  at  25%  of  the  total  of  each  tax bill for the
29    preceding year. By  the  date  specified  in  the  ordinance,
30    actual  tax  bills shall be prepared and mailed.  These bills
31    shall set out total taxes due and  the  amount  of  estimated
32    taxes billed in the first, second, and third installments and
33    shall  state  the  balance  of  taxes  due  for  that year as
34    represented by the sum derived from subtracting the amount of
 
                            -45-     LRB093 11179 BDD 12621 a
 1    the estimated installments from the total taxes due for  that
 2    year.
 3        The  county  board of any county with less than 3,000,000
 4    inhabitants  may,  by  ordinance  or  resolution,  adopt   an
 5    accelerated  method  of  tax  billing.  The  county board may
 6    subsequently rescind the ordinance or resolution  and  revert
 7    to the method otherwise provided for in this Code.
 8        Taxes  levied  on homestead property in which a member of
 9    the National Guard or reserves of the  armed  forces  of  the
10    United  States  who  was  called  to  active duty on or after
11    August 1, 1990, and who has an ownership interest  shall  not
12    be  deemed  delinquent  and  no  interest  shall accrue or be
13    charged as a penalty on such taxes due and payable in 1991 or
14    1992 until one year after that  member  returns  to  civilian
15    status.
16    (Source: P.A. 92-475, eff. 8-23-01.)".