Sen. Christine Radogno

Filed: 10/27/2011

 

 


 

 


 
09700SB0405sam006LRB097 04252 HLH 59173 a

1
AMENDMENT TO SENATE BILL 405

2    AMENDMENT NO. ______. Amend Senate Bill 405, AS AMENDED,
3with reference to page and line numbers of Senate Amendment No.
41, on page 1, line 5, by replacing "Sections 201 and 304" with
5"Sections 201, 207, and 304"; and
 
6on page 36, immediately below line 12, by inserting the
7following:
 
8    "(35 ILCS 5/207)  (from Ch. 120, par. 2-207)
9    Sec. 207. Net Losses.
10    (a) If after applying all of the (i) modifications provided
11for in paragraph (2) of Section 203(b), paragraph (2) of
12Section 203(c) and paragraph (2) of Section 203(d) and (ii) the
13allocation and apportionment provisions of Article 3 of this
14Act and subsection (c) of this Section, the taxpayer's net
15income results in a loss;
16        (1) for any taxable year ending prior to December 31,

 

 

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1    1999, such loss shall be allowed as a carryover or
2    carryback deduction in the manner allowed under Section 172
3    of the Internal Revenue Code;
4        (2) for any taxable year ending on or after December
5    31, 1999 and prior to December 31, 2003, such loss shall be
6    allowed as a carryback to each of the 2 taxable years
7    preceding the taxable year of such loss and shall be a net
8    operating loss carryover to each of the 20 taxable years
9    following the taxable year of such loss; and
10        (3) for any taxable year ending on or after December
11    31, 2003, such loss shall be allowed as a net operating
12    loss carryover to each of the 12 taxable years following
13    the taxable year of such loss, except as provided in
14    subsection (d).
15    (a-5) Election to relinquish carryback and order of
16application of losses.
17            (A) For losses incurred in tax years ending prior
18        to December 31, 2003, the taxpayer may elect to
19        relinquish the entire carryback period with respect to
20        such loss. Such election shall be made in the form and
21        manner prescribed by the Department and shall be made
22        by the due date (including extensions of time) for
23        filing the taxpayer's return for the taxable year in
24        which such loss is incurred, and such election, once
25        made, shall be irrevocable.
26            (B) The entire amount of such loss shall be carried

 

 

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1        to the earliest taxable year to which such loss may be
2        carried. The amount of such loss which shall be carried
3        to each of the other taxable years shall be the excess,
4        if any, of the amount of such loss over the sum of the
5        deductions for carryback or carryover of such loss
6        allowable for each of the prior taxable years to which
7        such loss may be carried.
8    (b) Any loss determined under subsection (a) of this
9Section must be carried back or carried forward in the same
10manner for purposes of subsections (a) and (b) of Section 201
11of this Act as for purposes of subsections (c) and (d) of
12Section 201 of this Act.
13    (c) Notwithstanding any other provision of this Act, for
14each taxable year ending on or after December 31, 2008, for
15purposes of computing the loss for the taxable year under
16subsection (a) of this Section and the deduction taken into
17account for the taxable year for a net operating loss carryover
18under paragraphs (1), (2), and (3) of subsection (a) of this
19Section, the loss and net operating loss carryover shall be
20reduced in an amount equal to the reduction to the net
21operating loss and net operating loss carryover to the taxable
22year, respectively, required under Section 108(b)(2)(A) of the
23Internal Revenue Code, multiplied by a fraction, the numerator
24of which is the amount of discharge of indebtedness income that
25is excluded from gross income for the taxable year (but only if
26the taxable year ends on or after December 31, 2008) under

 

 

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1Section 108(a) of the Internal Revenue Code and that would have
2been allocated and apportioned to this State under Article 3 of
3this Act but for that exclusion, and the denominator of which
4is the total amount of discharge of indebtedness income
5excluded from gross income under Section 108(a) of the Internal
6Revenue Code for the taxable year. The reduction required under
7this subsection (c) shall be made after the determination of
8Illinois net income for the taxable year in which the
9indebtedness is discharged.
10    (d) In the case of a corporation (other than a Subchapter S
11corporation), no carryover deduction shall be allowed under
12this Section for any taxable year ending after December 31,
132010 and prior to June 30, 2013 December 31, 2014; provided
14that, for purposes of determining the taxable years to which a
15net loss may be carried under subsection (a) of this Section,
16no taxable year for which a deduction is disallowed under this
17subsection shall be counted.
18    (e) In the case of a residual interest holder in a real
19estate mortgage investment conduit subject to Section 860E of
20the Internal Revenue Code, the net loss in subsection (a) shall
21be equal to:
22        (1) the amount computed under subsection (a), without
23    regard to this subsection (e), or if that amount is
24    positive, zero;
25        (2) minus an amount equal to the amount computed under
26    subsection (a), without regard to this subsection (e),

 

 

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1    minus the amount that would be computed under subsection
2    (a) if the taxpayer's federal taxable income were computed
3    without regard to Section 860E of the Internal Revenue Code
4    and without regard to this subsection (e).
5    The modification in this subsection (e) is exempt from the
6provisions of Section 250.
7(Source: P.A. 96-1496, eff. 1-13-11; 97-507, eff. 8-23-11.)".