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Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

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35 ILCS 5/303

    (35 ILCS 5/303) (from Ch. 120, par. 3-303)
    Sec. 303. (a) In general. Any item of capital gain or loss, and any item of income from rents or royalties from real or tangible personal property, interest, dividends, and patent or copyright royalties, and prizes awarded under the Illinois Lottery Law, to the extent such item constitutes nonbusiness income, together with any item of deduction directly allocable thereto, shall be allocated by any person other than a resident as provided in this Section.
    (b) Capital gains and losses.
        (1) Real property. Capital gains and losses from
    
sales or exchanges of real property are allocable to this State if the property is located in this State.
        (2) Tangible personal property. Capital gains and
    
losses from sales or exchanges of tangible personal property are allocable to this State if, at the time of such sale or exchange:
            (A) The property had its situs in this State; or
            (B) The taxpayer had its commercial domicile in
        
this State and was not taxable in the state in which the property had its situs.
        (3) Intangibles. Capital gains and losses from sales
    
or exchanges of intangible personal property are allocable to this State if the taxpayer had its commercial domicile in this State at the time of such sale or exchange.
    (c) Rents and royalties.
        (1) Real property. Rents and royalties from real
    
property are allocable to this State if the property is located in this State.
        (2) Tangible personal property. Rents and royalties
    
from tangible personal property are allocable to this State:
            (A) If and to the extent that the property is
        
utilized in this State; or
            (B) In their entirety if, at the time such rents
        
or royalties were paid or accrued, the taxpayer had its commercial domicile in this State and was not organized under the laws of or taxable with respect to such rents or royalties in the state in which the property was utilized. The extent of utilization of tangible personal property in a state is determined by multiplying the rents or royalties derived from such property by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
    (d) Patent and copyright royalties.
        (1) Allocation. Patent and copyright royalties are
    
allocable to this State:
            (A) If and to the extent that the patent or
        
copyright is utilized by the payer in this State; or
            (B) If and to the extent that the patent or
        
copyright is utilized by the payer in a state in which the taxpayer is not taxable with respect to such royalties and, at the time such royalties were paid or accrued, the taxpayer had its commercial domicile in this State.
        (2) Utilization.
            (A) A patent is utilized in a state to the extent
        
that it is employed in production, fabrication, manufacturing or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in this State if the taxpayer has its commercial domicile in this State.
            (B) A copyright is utilized in a state to the
        
extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in this State if the taxpayer has its commercial domicile in this State.
    (e) Illinois lottery prizes. Prizes awarded under the Illinois Lottery Law are allocable to this State. Payments received in taxable years ending on or after December 31, 2013, from the assignment of a prize under Section 13.1 of the Illinois Lottery Law are allocable to this State.
    (e-5) Unemployment benefits. Unemployment benefits paid by the Illinois Department of Employment Security are allocable to this State.
    (f) Taxability in other state. For purposes of allocation of income pursuant to this Section, a taxpayer is taxable in another state if:
        (1) In that state he is subject to a net income tax,
    
a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or
        (2) That state has jurisdiction to subject the
    
taxpayer to a net income tax regardless of whether, in fact, the state does or does not.
    (g) Cross references.
        (1) For allocation of interest and dividends by
    
persons other than residents, see Section 301(c)(2).
        (2) For allocation of nonbusiness income by
    
residents, see Section 301(a).
(Source: P.A. 97-709, eff. 7-1-12; 98-496, eff. 1-1-14.)