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Public Act 095-1024


 

Public Act 1024 95TH GENERAL ASSEMBLY



 


 
Public Act 095-1024
 
SB2015 Enrolled LRB095 17253 BDD 43313 b

    AN ACT concerning economic development.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the New
Markets Development Program Act.
 
    Section 5. Definitions. As used in this Act:
    "Applicable percentage" means 0% for each of the first 2
credit allowance dates, 7% for the third credit allowance date,
and 8% for the next 4 credit allowance dates.
    "Credit allowance date" means with respect to any qualified
equity investment:
        (1) the date on which the investment is initially made;
    and
        (2) each of the 6 anniversary dates of that date
    thereafter.
    "Department" means the Department of Commerce and Economic
Opportunity.
    "Long-term debt security" means any debt instrument issued
by a qualified community development entity, at par value or a
premium, with an original maturity date of at least 7 years
from the date of its issuance, with no acceleration of
repayment, amortization, or prepayment features prior to its
original maturity date. Cumulative cash payments of interest on
the qualified debt instrument during the period commencing with
the issuance of the qualified debt instrument and ending with
the seventh anniversary of its issuance shall not exceed the
sum of such cash interest payments and the cumulative net
income of the issuing community development entity for the same
period. This definition in no way limits the holder's ability
to accelerate payments on the debt instrument in situations
where the issuer has defaulted on covenants designed to ensure
compliance with this Act or Section 45D of the Internal Revenue
Code of 1986, as amended.
    "Purchase price" means the amount paid to the issuer of a
qualified equity investment for that qualified equity
investment.
    "Qualified active low-income community business" has the
meaning given to that term in Section 45D of the Internal
Revenue Code of 1986, as amended; except that any business that
derives or projects to derive 15% or more of its annual revenue
from the rental or sale of real estate is not considered to be
a qualified active low-income community business. This
exception does not apply to a business that is controlled by or
under common control with another business if the second
business (i) does not derive or project to derive 15% or more
of its annual revenue from the rental or sale of real estate
and (ii) is the primary tenant of the real estate leased from
the initial business. A business shall be considered a
qualified active low-income community business for the
duration of the qualified community development entity's
investment in or loan to the business if the entity reasonably
expects, at the time it makes the investment or loan, that the
business will continue to satisfy the requirements for being a
qualified active low-income community business throughout the
entire period of the investment or loan.
    "Qualified community development entity" has the meaning
given to that term in Section 45D of the Internal Revenue Code
of 1986, as amended; provided that such entity has entered
into, or is controlled by an entity that has entered into, an
allocation agreement with the Community Development Financial
Institutions Fund of the U.S. Treasury Department with respect
to credits authorized by Section 45D of the Internal Revenue
Code of 1986, as amended, that includes the State of Illinois
within the service area set forth in that allocation agreement.
    "Qualified equity investment" means any equity investment
in, or long-term debt security issued by, a qualified community
development entity that:
        (1) is acquired after the effective date of this Act at
    its original issuance solely in exchange for cash;
        (2) has at least 85% of its cash purchase price used by
    the issuer to make qualified low-income community
    investments in the State of Illinois; and
        (3) is designated by the issuer as a qualified equity
    investment under this Act and is certified by the
    Department as not exceeding the limitation contained in
    Section 20.
    This term includes any qualified equity investment that
does not meet the provisions of item (1) of this definition if
the investment was a qualified equity investment in the hands
of a prior holder.
    "Qualified low-income community investment" means any
capital or equity investment in, or loan to, any qualified
active low-income community business. With respect to any one
qualified active low-income community business, the maximum
amount of qualified low-income community investments made in
that business, on a collective basis with all of its affiliates
that may be counted towards the satisfaction of paragraph (2)
of the definition of qualified equity investment, shall be
$10,000,000 whether issued to one or several qualified
community development entities.
    "Tax credit" means a credit against any income, franchise,
or insurance premium taxes otherwise due under Illinois law.
    "Taxpayer" means any individual or entity subject to any
income, franchise, or insurance premium tax under Illinois law.
 
    Section 10. Credit established. A person or entity that
makes a qualified equity investment earns a vested right to tax
credits as follows:
        (1) on each credit allowance date of the qualified
    equity investment, the purchaser of the qualified equity
    investment, or subsequent holder of the qualified equity
    investment, is entitled to a tax credit during the taxable
    year including that credit allowance date;
        (2) the tax credit amount shall be equal to the
    applicable percentage for such credit allowance date
    multiplied by the purchase price paid to the issuer of the
    qualified equity investment; and
        (3) the amount of the tax credit claimed shall not
    exceed the amount of the State tax liability of the holder,
    or the person or entity to whom the credit is allocated for
    use pursuant to Section 15, for the tax year for which the
    tax credit is claimed.
    A company doing insurance business in this State claiming a
tax credit against insurance premium taxes payable pursuant to
Section 409 of the Illinois Insurance Code is not required to
pay any additional retaliatory tax imposed pursuant to Section
444 or 444.1 of the Illinois Insurance Code related to that
claim for a tax credit.
 
    Section 15. Transferability. No tax credit claimed under
this Act shall be refundable or saleable on the open market.
Tax credits earned by a partnership, limited liability company,
S corporation, or other "pass-through" entity may be allocated
to the partners, members, or shareholders of that entity for
their direct use in accordance with the provisions of any
agreement among the partners, members, or shareholders. Any
amount of tax credit that the taxpayer, or partner, member, or
shareholder thereof, is prohibited from claiming in a taxable
year may be carried forward to any of the taxpayer's 5
subsequent taxable years.
 
    Section 20. Annual cap on credits. The Department shall
limit the monetary amount of qualified equity investments
permitted under this Act to a level necessary to limit tax
credit use at no more than $10,000,000 of tax credits in any
fiscal year. This limitation on qualified equity investments
shall be based on the anticipated use of credits without regard
to the potential for taxpayers to carry forward tax credits to
later tax years.
 
    Section 25. Certification of qualified equity investments.
    (a) A qualified community development entity that seeks to
have an equity investment or long-term debt security designated
as a qualified equity investment and eligible for tax credits
under this Section shall apply to the Department. The qualified
community development entity must submit an application on a
form that the Department provides that includes:
        (1) The name, address, tax identification number of the
    entity, and evidence of the entity's certification as a
    qualified community development entity.
        (2) A copy of the allocation agreement executed by the
    entity, or its controlling entity, and the Community
    Development Financial Institutions Fund.
        (3) A certificate executed by an executive officer of
    the entity attesting that the allocation agreement remains
    in effect and has not been revoked or cancelled by the
    Community Development Financial Institutions Fund.
        (4) A description of the proposed amount, structure,
    and purchaser of the equity investment or long-term debt
    security.
        (5) The name and tax identification number of any
    taxpayer eligible to utilize tax credits earned as a result
    of the issuance of the qualified equity investment.
        (6) Information regarding the proposed use of proceeds
    from the issuance of the qualified equity investment.
        (7) A nonrefundable application fee of $5,000. This fee
    shall be paid to the Department and shall be required of
    each application submitted.
    (b) Within 30 days after receipt of a completed application
containing the information necessary for the Department to
certify a potential qualified equity investment, including the
payment of the application fee, the Department shall grant or
deny the application in full or in part. If the Department
denies any part of the application, it shall inform the
qualified community development entity of the grounds for the
denial. If the qualified community development entity provides
any additional information required by the Department or
otherwise completes its application within 15 days of the
notice of denial, the application shall be considered completed
as of the original date of submission. If the qualified
community development entity fails to provide the information
or complete its application within the 15-day period, the
application remains denied and must be resubmitted in full with
a new submission date.
    (c) If the application is deemed complete, the Department
shall certify the proposed equity investment or long-term debt
security as a qualified equity investment that is eligible for
tax credits under this Section, subject to the limitations
contained in Section 20. The Department shall provide written
notice of the certification to the qualified community
development entity. The notice shall include the names of those
taxpayers who are eligible to utilize the credits and their
respective credit amounts. If the names of the taxpayers who
are eligible to utilize the credits change due to a transfer of
a qualified equity investment or a change in an allocation
pursuant to Section 15, the qualified community development
entity shall notify the Department of such change.
    (d) The Department shall certify qualified equity
investments in the order applications are received by the
Department. Applications received on the same day shall be
deemed to have been received simultaneously. For applications
received on the same day and deemed complete, the Department
shall certify, consistent with remaining tax credit capacity,
qualified equity investments in proportionate percentages
based upon the ratio of the amount of qualified equity
investment requested in an application to the total amount of
qualified equity investments requested in all applications
received on the same day.
    (e) Once the Department has certified qualified equity
investments that, on a cumulative basis, are eligible for
$10,000,000 in tax credits, the Department may not certify any
more qualified equity investments. If a pending request cannot
be fully certified, the Department shall certify the portion
that may be certified unless the qualified community
development entity elects to withdraw its request rather than
receive partial credit.
    (f) Within 30 days after receiving notice of certification,
the qualified community development entity shall issue the
qualified equity investment and receive cash in the amount of
the certified amount. The qualified community development
entity must provide the Department with evidence of the receipt
of the cash investment within 10 business days after receipt.
If the qualified community development entity does not receive
the cash investment and issue the qualified equity investment
within 30 days following receipt of the certification notice,
the certification shall lapse and the entity may not issue the
qualified equity investment without reapplying to the
Department for certification. A certification that lapses
reverts back to the Department and may be reissued only in
accordance with the application process outline in this Section
25.
 
    Section 40. Recapture. The Department of Revenue shall
recapture, from the taxpayer that claimed the credit on a
return, the tax credit allowed under this Act if:
        (1) any amount of the federal tax credit available with
    respect to a qualified equity investment that is eligible
    for a tax credit under this Act is recaptured under Section
    45D of the Internal Revenue Code of 1986, as amended. In
    that case, the Department of Revenue's recapture shall be
    proportionate to the federal recapture with respect to that
    qualified equity investment;
        (2) the issuer redeems or makes principal repayment
    with respect to a qualified equity investment prior to the
    7th anniversary of the issuance of the qualified equity
    investment. In that case, the Department of Revenue's
    recapture shall be proportionate to the amount of the
    redemption or repayment with respect to the qualified
    equity investment; or
        (3) the issuer fails to invest at least 85% of the cash
    purchase price of the qualified equity investment in
    qualified low-income community investments in the State of
    Illinois within 12 months of the issuance of the qualified
    equity investment and maintain such level of investment in
    qualified low-income community investments in Illinois
    until the last credit allowance date for such qualified
    equity investment.
    For purposes of this Section, an investment shall be
considered held by an issuer even if the investment has been
sold or repaid; provided that the issuer reinvests an amount
equal to the capital returned to or recovered by the issuer
from the original investment, exclusive of any profits
realized, in another qualified low-income community investment
in this State within 12 months after the receipt of that
capital. An issuer is not required to reinvest capital returned
from qualified low-income community investments after the 6th
anniversary of the issuance of the qualified equity investment,
the proceeds of which were used to make the qualified
low-income community investment, and the qualified low-income
community investment shall be considered held by the issuer
through the 7th anniversary of the qualified equity
investment's issuance.
    The Department of Revenue shall provide notice to the
qualified community development entity of any proposed
recapture of tax credits pursuant to this Section. The entity
shall have 90 days to cure any deficiency indicated in the
Department of Revenue's original recapture notice and avoid
such recapture. If the entity fails or is unable to cure such
deficiency with the 90-day period, the Department of Revenue
shall provide the entity and the taxpayer from whom the credit
is to be recaptured with a final order of recapture. Any tax
credit for which a final recapture order has been issued shall
be recaptured by the Department of Revenue from the taxpayer
who claimed the tax credit on a tax return.
 
    Section 45. Examination and Rulemaking.
    (a) The Department may conduct examinations to verify that
the tax credits under this Act have been received and applied
according to the requirements of this Act and to verify that no
event has occurred that would result in a recapture of tax
credits under Section 40.
    (b) Neither the Department nor the Department of Revenue
shall have the authority to promulgate rules under the Act, but
the Department and the Department of Revenue shall have the
authority to issue advisory letters to individual qualified
community development entities and their investors that are
limited to the specific facts outlined in an advisory letter
request from a qualified community development entity. Such
rulings cannot be relied upon by any person or entity other
than the qualified community development entity that requested
the letter and the taxpayers that are entitled to any tax
credits generated from investments in such entity. For purposes
of this subsection, "rules" is given the meaning contained in
Section 1-70 of the Illinois Administrative Procedure Act.
    (c) In rendering advisory letters and making other
determinations under this Act, to the extent applicable, the
Department and the Department of Revenue shall look for
guidance to Section 45D of the Internal Revenue Code of 1986,
as amended, and the rules and regulations issued thereunder.
 
    Section 50. Sunset. For fiscal years following fiscal year
2012, qualified equity investments shall not be made under this
Act unless reauthorization is made pursuant to this Section.
For all fiscal years following fiscal year 2012, unless the
General Assembly adopts a joint resolution granting authority
to the Department to approve qualified equity investments for
the Illinois new markets development program and clearly
describing the amount of tax credits available for the next
fiscal year, or otherwise complies with the provisions of this
Section, no qualified equity investments may be permitted to be
made under this Act. The amount of available tax credits
contained in such a resolution shall not exceed the limitation
provided under Section 20. Nothing in this Section precludes a
taxpayer who makes a qualified equity investment prior to the
expiration of authority to make qualified equity investments
from claiming tax credits relating to that qualified equity
investment for each applicable credit allowance date.
 
    Section 75. The Illinois Insurance Code is amended by
changing Sections 409, 444, and 444.1 as follows:
 
    (215 ILCS 5/409)  (from Ch. 73, par. 1021)
    Sec. 409. Annual privilege tax payable by companies.
    (1) As of January 1, 1999 for all health maintenance
organization premiums written; as of July 1, 1998 for all
premiums written as accident and health business, voluntary
health service plan business, dental service plan business, or
limited health service organization business; and as of January
1, 1998 for all other types of insurance premiums written,
every company doing any form of insurance business in this
State, including, but not limited to, every risk retention
group, and excluding all fraternal benefit societies, all farm
mutual companies, all religious charitable risk pooling
trusts, and excluding all statutory residual market and special
purpose entities in which companies are statutorily required to
participate, whether incorporated or otherwise, shall pay, for
the privilege of doing business in this State, to the Director
for the State treasury a State tax equal to 0.5% of the net
taxable premium written, together with any amounts due under
Section 444 of this Code, except that the tax to be paid on any
premium derived from any accident and health insurance or on
any insurance business written by any company operating as a
health maintenance organization, voluntary health service
plan, dental service plan, or limited health service
organization shall be equal to 0.4% of such net taxable premium
written, together with any amounts due under Section 444. Upon
the failure of any company to pay any such tax due, the
Director may, by order, revoke or suspend the company's
certificate of authority after giving 20 days written notice to
the company, or commence proceedings for the suspension of
business in this State under the procedures set forth by
Section 401.1 of this Code. The gross taxable premium written
shall be the gross amount of premiums received on direct
business during the calendar year on contracts covering risks
in this State, except premiums on annuities, premiums on which
State premium taxes are prohibited by federal law, premiums
paid by the State for health care coverage for Medicaid
eligible insureds as described in Section 5-2 of the Illinois
Public Aid Code, premiums paid for health care services
included as an element of tuition charges at any university or
college owned and operated by the State of Illinois, premiums
on group insurance contracts under the State Employees Group
Insurance Act of 1971, and except premiums for deferred
compensation plans for employees of the State, units of local
government, or school districts. The net taxable premium shall
be the gross taxable premium written reduced only by the
following:
        (a) the amount of premiums returned thereon which shall
    be limited to premiums returned during the same preceding
    calendar year and shall not include the return of cash
    surrender values or death benefits on life policies
    including annuities;
        (b) dividends on such direct business that have been
    paid in cash, applied in reduction of premiums or left to
    accumulate to the credit of policyholders or annuitants. In
    the case of life insurance, no deduction shall be made for
    the payment of deferred dividends paid in cash to
    policyholders on maturing policies; dividends left to
    accumulate to the credit of policyholders or annuitants
    shall be included as gross taxable premium written when
    such dividend accumulations are applied to purchase
    paid-up insurance or to shorten the endowment or premium
    paying period.
    (2) The annual privilege tax payment due from a company
under subsection (4) of this Section may be reduced by: (a) the
excess amount, if any, by which the aggregate income taxes paid
by the company, on a cash basis, for the preceding calendar
year under subsections (a) through (d) of Section 201 of the
Illinois Income Tax Act exceed 1.5% of the company's net
taxable premium written for that prior calendar year, as
determined under subsection (1) of this Section; and (b) the
amount of any fire department taxes paid by the company during
the preceding calendar year under Section 11-10-1 of the
Illinois Municipal Code. Any deductible amount or offset
allowed under items (a) and (b) of this subsection for any
calendar year will not be allowed as a deduction or offset
against the company's privilege tax liability for any other
taxing period or calendar year.
    (3) If a company survives or was formed by a merger,
consolidation, reorganization, or reincorporation, the
premiums received and amounts returned or paid by all companies
party to the merger, consolidation, reorganization, or
reincorporation shall, for purposes of determining the amount
of the tax imposed by this Section, be regarded as received,
returned, or paid by the surviving or new company.
    (4)(a) All companies subject to the provisions of this
Section shall make an annual return for the preceding calendar
year on or before March 15 setting forth such information on
such forms as the Director may reasonably require. Payments of
quarterly installments of the taxpayer's total estimated tax
for the current calendar year shall be due on or before April
15, June 15, September 15, and December 15 of such year, except
that all companies transacting insurance in this State whose
annual tax for the immediately preceding calendar year was less
than $5,000 shall make only an annual return. Failure of a
company to make the annual payment, or to make the quarterly
payments, if required, of at least 25% of either (i) the total
tax paid during the previous calendar year or (ii) 80% of the
actual tax for the current calendar year shall subject it to
the penalty provisions set forth in Section 412 of this Code.
    (b) Notwithstanding the foregoing provisions, no annual
return shall be required or made on March 15, 1998, under this
subsection. For the calendar year 1998:
        (i) each health maintenance organization shall have no
    estimated tax installments;
        (ii) all companies subject to the tax as of July 1,
    1998 as set forth in subsection (1) shall have estimated
    tax installments due on September 15 and December 15 of
    1998 which installments shall each amount to no less than
    one-half of 80% of the actual tax on its net taxable
    premium written during the period July 1, 1998, through
    December 31, 1998; and
        (iii) all other companies shall have estimated tax
    installments due on June 15, September 15, and December 15
    of 1998 which installments shall each amount to no less
    than one-third of 80% of the actual tax on its net taxable
    premium written during the calendar year 1998.
    In the year 1999 and thereafter all companies shall make
annual and quarterly installments of their estimated tax as
provided by paragraph (a) of this subsection.
    (5) In addition to the authority specifically granted under
Article XXV of this Code, the Director shall have such
authority to adopt rules and establish forms as may be
reasonably necessary for purposes of determining the
allocation of Illinois corporate income taxes paid under
subsections (a) through (d) of Section 201 of the Illinois
Income Tax Act amongst members of a business group that files
an Illinois corporate income tax return on a unitary basis, for
purposes of regulating the amendment of tax returns, for
purposes of defining terms, and for purposes of enforcing the
provisions of Article XXV of this Code. The Director shall also
have authority to defer, waive, or abate the tax imposed by
this Section if in his opinion the company's solvency and
ability to meet its insured obligations would be immediately
threatened by payment of the tax due.
    (c) This Section is subject to the provisions of Section 10
of the New Markets Development Program Act.
(Source: P.A. 90-583, eff. 5-29-98.)
 
    (215 ILCS 5/444)  (from Ch. 73, par. 1056)
    Sec. 444. Retaliation.
    (1) Whenever the existing or future laws of any other state
or country shall require of companies incorporated or organized
under the laws of this State as a condition precedent to their
doing business in such other state or country, compliance with
laws, rules, regulations, and prohibitions more onerous or
burdensome than the rules and regulations imposed by this State
on foreign or alien companies, or shall require any deposit of
securities or other obligations in such state or country, for
the protection of policyholders or otherwise or require of such
companies or agents thereof or brokers the payment of
penalties, fees, charges, or taxes greater than the penalties,
fees, charges, or taxes required in the aggregate for like
purposes by this Code or any other law of this State, of
foreign or alien companies, agents thereof or brokers, then
such laws, rules, regulations, and prohibitions of said other
state or country shall apply to companies incorporated or
organized under the laws of such state or country doing
business in this State, and all such companies, agents thereof,
or brokers doing business in this State, shall be required to
make deposits, pay penalties, fees, charges, and taxes, in
amounts equal to those required in the aggregate for like
purposes of Illinois companies doing business in such state or
country, agents thereof or brokers. Whenever any other state or
country shall refuse to permit any insurance company
incorporated or organized under the laws of this State to
transact business according to its usual plan in such other
state or country, the director may, if satisfied that such
company of this State is solvent, properly managed, and can
operate legally under the laws of such other state or country,
forthwith suspend or cancel the license of every insurance
company doing business in this State which is incorporated or
organized under the laws of such other state or country to the
extent that it insures in this State against any of the risks
or hazards which are sought to be insured against by the
company of this State in such other state or country.
    (2) The provisions of this Section shall not apply to
residual market or special purpose assessments or guaranty fund
or guaranty association assessments, both under the laws of
this State and under the laws of any other state or country,
and any tax offset or credit for any such assessment shall, for
purposes of this Section, be treated as a tax paid both under
the laws of this State and under the laws of any other state or
country.
    (3) The terms "penalties", "fees", "charges", and "taxes"
in subsection (1) of this Section shall include: the penalties,
fees, charges, and taxes collected under State law and
referenced within Article XXV exclusive of any items referenced
by subsection (2) of this Section, but including any tax offset
allowed under Section 531.13 of this Code; the Illinois
corporate income taxes imposed under subsections (a) through
(d) of Section 201 of the Illinois Income Tax Act after any tax
offset allowed under Section 531.13 of this Code; income or
personal property taxes imposed by other states or countries;
penalties, fees, charges, and taxes of other states or
countries imposed for purposes like those of the penalties,
fees, charges, and taxes specified in Article XXV of this Code
exclusive of any item referenced in subsection (2) of this
Section; and any penalties, fees, charges, and taxes required
as a franchise, privilege, or licensing tax for conducting the
business of insurance whether calculated as a percentage of
income, gross receipts, premium, or otherwise.
    (4) Nothing contained in this Section or Section 409 or
Section 444.1 is intended to authorize or expand any power of
local governmental units or municipalities to impose taxes,
fees, or charges.
    (5) This Section is subject to the provisions of Section 10
of the New Markets Development Program Act.
(Source: P.A. 90-583, eff. 5-29-98.)
 
    (215 ILCS 5/444.1)  (from Ch. 73, par. 1056.1)
    Sec. 444.1. Payment of retaliatory taxes.
    (1) Every foreign or alien company doing insurance business
in this State shall pay the Director the retaliatory tax
determined in accordance with Section 444.
    (2) (a) All companies subject to the provisions of this
Section shall make an annual return for the preceding calendar
year on or before March 15 setting forth such information on
such forms as the Director may reasonably require. Payments of
quarterly installments of the taxpayer's total estimated
retaliatory tax for the current calendar year shall be due on
or before April 15, June 15, September 15, and December 15 of
such year, except that all companies transacting insurance
business in this State whose annual tax for the immediately
preceding calendar year was less than $5,000 shall make only an
annual return. Failure of a company to make the annual payment,
or to make the quarterly payments, if required, of at least
one-fourth of either (i) the total tax paid during the previous
calendar year or (ii) 80% of the actual tax for the current
calendar year shall subject it to the penalty provisions set
forth in Section 412 of this Code.
    (b) Notwithstanding the foregoing provisions of paragraph
(a) of this subsection, the retaliatory tax liability of
companies under Section 444 of this Code for the calendar year
ended December 31, 1997 shall be determined in accordance with
this amendatory Act of 1998 and shall include in the aggregate
comparative tax burden for the State of Illinois, any tax
offset allowed under Section 531.13 of this Code and any income
taxes paid for the year 1997 under subsections (a) through (d)
of Section 201 of the Illinois Income Tax Act after any tax
offset allowed under Section 531.13 of this Code.
        (i) Any annual retaliatory tax returns and payments
    made for the year ended December 31, 1997 and any quarterly
    installments of the taxpayer's total estimated 1998
    retaliatory tax liability paid prior to the effective date
    of this Amendatory Act of 1998 that do not include the
    items specified by subsection (1) of this Section shall be
    amended and restated, at the taxpayer's election, on forms
    prepared by the Director so as to provide for the inclusion
    of such items. An amended and restated return for the year
    ended December 31, 1997 filed under this subparagraph shall
    treat any payment of estimated privilege taxes under
    Section 409 as in effect prior to October 23, 1997 as a
    payment of estimated retaliatory taxes for the year ended
    December 31, 1997.
        (ii) Any overpayment resulting from such amended
    return and restated tax liability shall be allowed as a
    credit against any subsequent privilege or retaliatory tax
    obligations of the taxpayer.
        (iii) In the year 1999 and thereafter all companies
    shall make annual and quarterly installments of their
    estimated tax as provided by paragraph (a) of this
    subsection.
    (3) Any tax payment made under this Section and any tax
returns prepared in compliance with Section 410 shall give full
consideration to the impact of any future reduction in or
elimination of a taxpayer's liability under Section 409,
whether such reduction or elimination is due to an operation of
law or an Act of the General Assembly.
    (4) Any foreign or alien taxpayer who makes, under protest,
a tax payment required by Section 409 shall, at the time of
payment, file a retaliatory tax return sufficient to disclose
the full amount of retaliatory taxes which would be due and
owing for the tax period in question if the protest were
upheld. Notwithstanding the provisions of the State Officers
and Employees Money Disposition Act or any other laws of this
State, the protested payment, to the extent of the retaliatory
tax so disclosed, shall be deposited directly in the General
Revenue Fund; and the balance of the payment, if any, shall be
deposited in a protest account pursuant to the provisions of
the aforesaid Act, as now or hereafter amended.
    (5) The failure of a company to make the annual payment or
to make the quarterly payments, if required, of at least
one-fourth of either (i) the total tax paid during the
preceding calendar year or (ii) 80% of the actual tax for the
current calendar year shall subject it to the penalty
provisions set forth in Section 412 of this Code.
    (6) This Section is subject to the provisions of Section 10
of the New Markets Development Program Act.
(Source: P.A. 90-583, eff. 5-29-98.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 12/31/2008