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1 | AN ACT concerning State government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. If and only if Senate Bill 2595 of the 95th | ||||||||||||||||||||||||||||||||||||||||||||
5 | General Assembly, as amended by House Amendment No. 4, becomes | ||||||||||||||||||||||||||||||||||||||||||||
6 | law, then the Illinois Lottery Law is amended by changing | ||||||||||||||||||||||||||||||||||||||||||||
7 | Sections 2.5, 9, 19, 20, 20.1, 20.2, and 27 and by adding | ||||||||||||||||||||||||||||||||||||||||||||
8 | Section 20.3 as follows: | ||||||||||||||||||||||||||||||||||||||||||||
9 | (20 ILCS 1605/2.5)
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10 | Sec. 2.5. Creation of the Illinois Education Trust Fund; | ||||||||||||||||||||||||||||||||||||||||||||
11 | State Treasurer's investment of moneys. There is created in the | ||||||||||||||||||||||||||||||||||||||||||||
12 | State Treasury the Illinois Education Trust Fund. | ||||||||||||||||||||||||||||||||||||||||||||
13 | Notwithstanding any other statute to the contrary, the State | ||||||||||||||||||||||||||||||||||||||||||||
14 | Treasurer is hereby authorized to and shall invest all moneys | ||||||||||||||||||||||||||||||||||||||||||||
15 | deposited into the Illinois Education Trust Fund pursuant to | ||||||||||||||||||||||||||||||||||||||||||||
16 | this amendatory Act of the 95th General Assembly. Permissible | ||||||||||||||||||||||||||||||||||||||||||||
17 | investments of the Illinois Education Trust Fund shall be | ||||||||||||||||||||||||||||||||||||||||||||
18 | identical to the investment authority granted to the Illinois | ||||||||||||||||||||||||||||||||||||||||||||
19 | State Board of Investments pursuant to 40 ILCS 5/22A-112, | ||||||||||||||||||||||||||||||||||||||||||||
20 | subject to the requirements and restrictions set forth in | ||||||||||||||||||||||||||||||||||||||||||||
21 | Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and | ||||||||||||||||||||||||||||||||||||||||||||
22 | 1-115 of the Illinois Pension Code. Notwithstanding the | ||||||||||||||||||||||||||||||||||||||||||||
23 | foregoing, the following shall not be considered permissible |
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| |||||||
1 | investments of the Illinois Education Trust Fund; (i) | ||||||
2 | investments in venture capital, (ii) investments in hedge | ||||||
3 | funds, and (iii) investments in real estate. | ||||||
4 | Notwithstanding any other State law to the contrary, on or | ||||||
5 | before the last day of each fiscal year the State Comptroller | ||||||
6 | shall direct and the State Treasurer shall transfer from the | ||||||
7 | Illinois Education Trust Fund to the State Lottery Fund the | ||||||
8 | amount necessary to provide for the transfer of $600,000,000 in | ||||||
9 | that fiscal year from the State Lottery Fund to the Lottery | ||||||
10 | Supports Schools Fund Common School Fund in accordance with the | ||||||
11 | provisions of Section 20.2 of this Act.
| ||||||
12 | (Source: 95SB2595, HAM4.)
| ||||||
13 | (20 ILCS 1605/9) (from Ch. 120, par. 1159)
| ||||||
14 | Sec. 9. Duties of Superintendent. The Superintendent, as | ||||||
15 | administrative head of
the Division, shall direct and supervise | ||||||
16 | all its administrative and
technical activities and shall | ||||||
17 | report to the Director. In addition to the duties imposed upon | ||||||
18 | him
or her elsewhere in this Act, it
shall be the | ||||||
19 | Superintendent's duty:
| ||||||
20 | a. To supervise and administer the operation of the lottery | ||||||
21 | in
accordance with the provisions of this Act or such
rules and | ||||||
22 | regulations of the Department
adopted thereunder.
| ||||||
23 | b. To attend meetings of the Board or to appoint a designee | ||||||
24 | to
attend in his stead.
| ||||||
25 | c. To employ and direct such personnel in accord with the |
| |||||||
| |||||||
1 | Personnel Code,
as may be necessary to carry out the purposes | ||||||
2 | of this Act. The Superintendent may, subject to the approval of | ||||||
3 | the Director, use the services, personnel, or facilities of the | ||||||
4 | Department.
In addition, the Superintendent
may by agreement | ||||||
5 | secure such services as he or she may deem necessary
from any | ||||||
6 | other department, agency, or unit of the State government, and
| ||||||
7 | may employ and compensate such consultants and technical | ||||||
8 | assistants as may
be required and is otherwise permitted by | ||||||
9 | law.
| ||||||
10 | d. To license, in accordance with the provisions of | ||||||
11 | Sections 10 and 10.1
of this Act and the rules and regulations | ||||||
12 | of the Department
adopted thereunder, or to ensure the | ||||||
13 | retention, pursuant to the terms of a Management and Concession | ||||||
14 | Agreement,
as agents to sell lottery tickets such persons as in | ||||||
15 | his opinion will best
serve the public convenience and promote | ||||||
16 | the sale of tickets or shares.
Unless the lottery is operated | ||||||
17 | pursuant to the terms of a Management and Concession Agreement, | ||||||
18 | the Superintendent may require a bond from every licensed | ||||||
19 | agent, in such
amount as provided in the rules and regulations | ||||||
20 | of the Department. Every licensed
agent shall prominently | ||||||
21 | display his or her license, or a copy thereof, as provided
in | ||||||
22 | the rules and regulations of the Department.
| ||||||
23 | e. To suspend or revoke any license issued pursuant to this | ||||||
24 | Act or the
rules and regulations promulgated by the Department | ||||||
25 | thereunder.
| ||||||
26 | f. To confer regularly as necessary or desirable and not
|
| |||||||
| |||||||
1 | less than once
every month with the Lottery Control Board on | ||||||
2 | the operation and administration
of the Lottery; to make | ||||||
3 | available for inspection by the Board or any member
of the | ||||||
4 | Board, upon request, all books, records, files, and other | ||||||
5 | information
and documents of his office; to advise the Board | ||||||
6 | and recommend such rules
and regulations and such other matters | ||||||
7 | as he deems necessary and advisable
to improve the operation | ||||||
8 | and administration of the lottery or the implementation and | ||||||
9 | oversight of a Management and Concession Agreement.
| ||||||
10 | g. To enter into contracts for the operation of the | ||||||
11 | lottery, or any part
thereof, and, unless the lottery is | ||||||
12 | operated pursuant to the terms of a Management and Concession | ||||||
13 | Agreement, to enter into contracts for the promotion of the | ||||||
14 | lottery on behalf of
the Department, with any person, firm or | ||||||
15 | corporation, to perform any of the
functions provided for in | ||||||
16 | this Act or the rules and regulations promulgated
thereunder. | ||||||
17 | The Department shall not expend State funds on a contractual
| ||||||
18 | basis for such functions unless those functions and | ||||||
19 | expenditures are expressly
authorized by the General Assembly.
| ||||||
20 | h. Unless the State has entered into a Management and | ||||||
21 | Concession Agreement, to enter into an agreement or agreements | ||||||
22 | with the management of state
lotteries operated pursuant to the | ||||||
23 | laws of other states for the purpose of
creating and operating | ||||||
24 | a multi-state lottery game wherein a separate and
distinct | ||||||
25 | prize pool would be combined to award larger prizes to the | ||||||
26 | public
than could be offered by the several state lotteries, |
| |||||||
| |||||||
1 | individually. No
tickets or shares offered in connection with a | ||||||
2 | multi-state lottery game
shall be sold within the State of | ||||||
3 | Illinois, except those offered by and
through the Department. | ||||||
4 | No such agreement shall purport to pledge the full
faith and | ||||||
5 | credit of the State of Illinois, nor shall the Department | ||||||
6 | expend
State funds on a contractual basis in connection with | ||||||
7 | any such game unless
such expenditures are expressly authorized | ||||||
8 | by the General Assembly,
provided, however, that in the event | ||||||
9 | of error or omission by the Illinois
State Lottery in the | ||||||
10 | conduct of the game, as determined by the multi-state
game | ||||||
11 | directors, the Department shall be authorized to pay a prize | ||||||
12 | winner or
winners the lesser of a disputed prize or $1,000,000, | ||||||
13 | any such payment to
be made solely from funds appropriated for | ||||||
14 | game prize purposes. The
Department shall be authorized to | ||||||
15 | share in the ordinary operating expenses
of any such | ||||||
16 | multi-state lottery game, from funds appropriated by the | ||||||
17 | General Assembly,
and in the event the multi-state game control | ||||||
18 | offices are physically
located within the State of Illinois, | ||||||
19 | the Department is authorized to
advance start-up operating | ||||||
20 | costs not to exceed $150,000, subject to
proportionate | ||||||
21 | reimbursement of such costs by the other participating state
| ||||||
22 | lotteries. The Department shall be authorized to share | ||||||
23 | proportionately in
the costs of establishing a liability | ||||||
24 | reserve fund from funds appropriated
by the General Assembly. | ||||||
25 | The Department is authorized to transfer prize
award funds | ||||||
26 | attributable to Illinois sales of multi-state lottery game |
| |||||||
| |||||||
1 | tickets to
the multi-state control office, or its designated | ||||||
2 | depository, for deposit
to such game pool account or accounts | ||||||
3 | as may be established by the
multi-state game directors, the | ||||||
4 | records of which account or accounts shall
be available at all | ||||||
5 | times for inspection in an audit by the Auditor General
of | ||||||
6 | Illinois and any other auditors pursuant to the laws of the | ||||||
7 | State of
Illinois.
No multi-state game prize awarded to a | ||||||
8 | nonresident of Illinois, with
respect to a ticket or share | ||||||
9 | purchased in a state other than the State of
Illinois, shall be | ||||||
10 | deemed to be a prize awarded under this Act for the
purpose of | ||||||
11 | taxation under the Illinois Income Tax Act.
All of the net | ||||||
12 | revenues accruing from the sale of multi-state lottery
tickets | ||||||
13 | or shares shall be transferred into the Common School Fund | ||||||
14 | pursuant
to Section 7.2.
The Department shall promulgate such | ||||||
15 | rules as may be appropriate to
implement the provisions of this | ||||||
16 | Section.
| ||||||
17 | (h-1) In the event that the State enters into a Management | ||||||
18 | and Concession Agreement, to authorize a Concessionaire to | ||||||
19 | enter into an agreement or agreements with the management of | ||||||
20 | state
lotteries operated pursuant to the laws of other states | ||||||
21 | for the purpose of
creating and operating a multi-state lottery | ||||||
22 | game wherein a separate and
distinct prize pool would be | ||||||
23 | combined to award larger prizes to the public
than could be | ||||||
24 | offered by the several state lotteries individually. The | ||||||
25 | Superintendent shall not authorize the Concessionaire to take | ||||||
26 | such action unless the Illinois Gaming Board verifies that the |
| |||||||
| |||||||
1 | authorization derived from the agreement conforms to the | ||||||
2 | provisions of the Illinois Procurement Code and the State | ||||||
3 | Officials and Employees Ethics Act. No
tickets or shares | ||||||
4 | offered in connection with a multi-state lottery game
shall be | ||||||
5 | sold within the State of Illinois, except those offered by and
| ||||||
6 | through the Concessionaire or technical operator pursuant to | ||||||
7 | the terms of the Management and Concession Agreement and this | ||||||
8 | amendatory Act of the 95th General Assembly. No such agreement | ||||||
9 | shall purport to pledge the full
faith and credit of the State | ||||||
10 | of Illinois or to waive the sovereign immunity of the State of | ||||||
11 | Illinois, nor shall the Department expend
State funds on a | ||||||
12 | contractual basis in connection with any such game unless
such | ||||||
13 | expenditures are expressly authorized by the General Assembly. | ||||||
14 | To the extent authorized pursuant to the terms of a Management | ||||||
15 | and Concession Agreement, the Concessionaire shall be | ||||||
16 | authorized to share in the ordinary operating expenses
of any | ||||||
17 | such multi-state lottery game,
and in the event the multi-state | ||||||
18 | game control offices are physically
located within the State of | ||||||
19 | Illinois, the Concessionaire is authorized to
advance start-up | ||||||
20 | operating costs, subject to
proportionate reimbursement of | ||||||
21 | such costs by the other participating state
lotteries. The | ||||||
22 | Concessionaire shall be authorized to share proportionately in
| ||||||
23 | the costs of establishing a liability reserve fund. The | ||||||
24 | Concessionaire is authorized to transfer prize
award funds | ||||||
25 | attributable to Illinois sales of multi-state lottery game | ||||||
26 | tickets to
the multi-state control office, or its designated |
| |||||||
| |||||||
1 | depository, for deposit
to such game pool account or accounts | ||||||
2 | as may be established by the
multi-state game directors, the | ||||||
3 | records of which account or accounts shall
be available at all | ||||||
4 | times for inspection in an audit by the Illinois Gaming Board | ||||||
5 | and any auditors pursuant to the laws of the State of
Illinois.
| ||||||
6 | No multi-state game prize awarded to a nonresident of Illinois, | ||||||
7 | with
respect to a ticket or share purchased in a state other | ||||||
8 | than the State of
Illinois, shall be deemed to be a prize | ||||||
9 | awarded under this Act for the
purpose of taxation under the | ||||||
10 | Illinois Income Tax Act. The Illinois Gaming Board and the | ||||||
11 | Department shall promulgate such rules as may be appropriate to
| ||||||
12 | implement the provisions of this Section. | ||||||
13 | i. To make a continuous study and investigation of (1) the | ||||||
14 | operation and
the administration of similar laws which may be | ||||||
15 | in effect in other states
or countries, (2) any literature on | ||||||
16 | the subject which from time to time
may be published or | ||||||
17 | available, (3) any Federal laws which may affect the
operation | ||||||
18 | of the
lottery, and (4) the reaction of Illinois citizens to | ||||||
19 | existing and potential
features of the lottery with a view to | ||||||
20 | recommending or effecting changes
that will tend to serve the | ||||||
21 | purposes of this Act.
| ||||||
22 | j. To report monthly to the State Treasurer and the Lottery | ||||||
23 | Control Board
a full and complete statement of lottery | ||||||
24 | revenues, prize disbursements and
other expenses for each month | ||||||
25 | and the amounts to be transferred to the Common
School Fund | ||||||
26 | pursuant to Section 7.2 or such other funds as are otherwise
|
| |||||||
| |||||||
1 | authorized by Sections 20.2 and Section 21.2 of this Act, and | ||||||
2 | to
make an annual report, which shall include a full and | ||||||
3 | complete statement
of lottery revenues, prize disbursements | ||||||
4 | and other expenses, to the Governor
and the Board. All reports | ||||||
5 | required by this subsection shall be public
and copies of all
| ||||||
6 | such reports shall be sent to the Speaker of the House, the | ||||||
7 | President of
the Senate, and the minority leaders of both | ||||||
8 | houses.
| ||||||
9 | k. If the State enters into a Management and Concession | ||||||
10 | Agreement, the Illinois Gaming Board shall assume the powers | ||||||
11 | and duties in this Section 9 to the extent they are applicable. | ||||||
12 | (Source: P.A. 94-776, eff. 5-19-06; 95SB2595, HAM4.)
| ||||||
13 | (20 ILCS 1605/19) (from Ch. 120, par. 1169)
| ||||||
14 | Sec. 19. Claiming prizes. The Division shall establish an | ||||||
15 | appropriate period for the
claiming of prizes for each lottery | ||||||
16 | game offered. Each claim period shall
be stated in game rules | ||||||
17 | and written play
instructions issued by the Superintendent in | ||||||
18 | accordance with Section 7.1 of
this Act or, if the State enters | ||||||
19 | into a Management and Concession Agreement pursuant to which a | ||||||
20 | Concessionaire shall manage or operate the Lottery, such rules | ||||||
21 | and written play instructions as may be issued in accordance | ||||||
22 | with the terms of the Management and Concession Agreement, but | ||||||
23 | subject to change by rule of the Illinois Gaming Board. Written | ||||||
24 | play instructions shall be made available to all players
| ||||||
25 | through sales agents licensed to sell game tickets or shares.
|
| |||||||
| |||||||
1 | Prizes for lottery games which involve the purchase of a | ||||||
2 | physical lottery
ticket may be claimed only by presentation of | ||||||
3 | a valid winning lottery
ticket that matches validation records | ||||||
4 | on file with the Lottery or, if the State enters into a | ||||||
5 | Management and Concession Agreement pursuant to which a | ||||||
6 | Concessionaire manages or operates the Lottery, the records on | ||||||
7 | file with that Concessionaire or technical operator, its | ||||||
8 | contractors and licensees; no
claim may be honored which is | ||||||
9 | based on the assertion that the ticket was
lost or stolen. No | ||||||
10 | lottery ticket which has been altered, mutilated, or
fails to | ||||||
11 | pass validation tests shall be deemed to be a winning ticket.
| ||||||
12 | If no claim
is made for the money within the established | ||||||
13 | claim period, the prize may
be included in the prize pool of | ||||||
14 | such special drawing or drawings as the
Division may, from time | ||||||
15 | to time, designate, except, in the event the Lottery is | ||||||
16 | operated pursuant to the terms of a Management and Concession | ||||||
17 | Agreement, then the unclaimed prize money shall be transferred | ||||||
18 | to the Lottery Supports Schools Fund Common School Fund . | ||||||
19 | Unclaimed
multi-state game prize money may be included in the | ||||||
20 | multi-state
prize
pool for such special drawing or drawings as | ||||||
21 | the multi-state game directors
may, from time to time, | ||||||
22 | designate, unless the lottery is operated pursuant to the terms | ||||||
23 | of a Management and Concession Agreement, in which case all | ||||||
24 | unclaimed prize money not included in the prize pool of a | ||||||
25 | special drawing shall be transferred to the Lottery Supports | ||||||
26 | Schools Fund Common School Fund . Unless the lottery is operated |
| |||||||
| |||||||
1 | pursuant to the terms of a Management and Concession Agreement, | ||||||
2 | any bonuses offered by the Department
to sales agents who sell | ||||||
3 | winning tickets or shares shall be
payable to such agents | ||||||
4 | regardless of whether or not the prize money on the
ticket or | ||||||
5 | share is claimed, provided that the agent can be identified as
| ||||||
6 | the vendor of the winning ticket or share, and
that the winning | ||||||
7 | ticket or share was sold on or after January 1, 1984.
| ||||||
8 | (Source: P.A. 94-776, eff. 5-19-06; 95SB2595, HAM4.)
| ||||||
9 | (20 ILCS 1605/20) (from Ch. 120, par. 1170)
| ||||||
10 | Sec. 20. State Lottery Fund.
| ||||||
11 | (a) There is created in the State Treasury a special fund | ||||||
12 | to be
known as the "State Lottery Fund". Such fund shall | ||||||
13 | consist of all revenues
received from (1) the sale of lottery | ||||||
14 | tickets or shares, (net of
commissions, fees
representing those | ||||||
15 | expenses that are directly proportionate to the
sale of tickets | ||||||
16 | or shares at the agent location, and prizes of less
than
$600 | ||||||
17 | which
have been validly paid at the agent
level), (2) | ||||||
18 | application fees,
and (3) all other sources including moneys | ||||||
19 | credited or transferred thereto
from
any other fund
or source | ||||||
20 | pursuant to law and, if the State enters into a Management and | ||||||
21 | Concession Agreement, any moneys accruing to the State pursuant | ||||||
22 | to the terms of that Agreement. Interest earnings of the State | ||||||
23 | Lottery Fund
shall be credited to the Common School Fund unless | ||||||
24 | the State enters into a Management and Concession Agreement. If | ||||||
25 | the State enters into a Management and Concession Agreement, |
| |||||||
| |||||||
1 | interest earnings of the State Lottery Fund shall be credited | ||||||
2 | to the Lottery Supports Schools Fund .
| ||||||
3 | (b) The receipt and distribution of moneys under Section | ||||||
4 | 21.5 of this Act shall be in accordance with Section 21.5.
| ||||||
5 | (c) The receipt and distribution of moneys under Section | ||||||
6 | 21.6 of this Act shall be in accordance with Section 21.6. | ||||||
7 | (d) The receipt and distribution of moneys under Section | ||||||
8 | 21.7 of this Act shall be in accordance with Section 21.7.
| ||||||
9 | (e) The receipt and distribution of moneys under Section | ||||||
10 | 21.8 of this Act shall be in accordance with Section 21.8.
| ||||||
11 | (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05; | ||||||
12 | 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff. | ||||||
13 | 10-11-07; 95SB2595, HAM4.)
| ||||||
14 | (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
| ||||||
15 | Sec. 20.1. Department account.
| ||||||
16 | (a) The Department is authorized to pay validated prizes
up | ||||||
17 | to $25,000 from funds held by the Department in an account | ||||||
18 | separate and
apart from all public moneys of the State. Moneys | ||||||
19 | in this account shall be
administered by the Director | ||||||
20 | exclusively for the purposes of issuing payments
to prize | ||||||
21 | winners authorized by this Section. Moneys in this account | ||||||
22 | shall be
deposited by the Department into the Public | ||||||
23 | Treasurers' Investment Pool
established under Section 17 of the | ||||||
24 | State Treasurer Act. The Department shall
submit vouchers from | ||||||
25 | time to time as needed for reimbursement of this account
from |
| |||||||
| |||||||
1 | moneys appropriated for prizes from the State Lottery Fund. | ||||||
2 | Investment
income earned from this account shall be deposited | ||||||
3 | monthly by the Department
into the Common School Fund. If the | ||||||
4 | State enters into a Management and Concession Agreement, then | ||||||
5 | investment income from the account shall be deposited into the | ||||||
6 | Lottery Supports Schools Fund. The Department shall file | ||||||
7 | quarterly fiscal
reports specifying the activity of this | ||||||
8 | account as required under Section 16 of
the State Comptroller | ||||||
9 | Act, and shall file quarterly with the General Assembly,
the | ||||||
10 | Auditor General, the Comptroller, and the State Treasurer a | ||||||
11 | report
indicating the costs associated with this activity.
| ||||||
12 | (b) The Department is authorized to enter into an | ||||||
13 | interagency agreement
with the Office of the Comptroller or any | ||||||
14 | other State agency to establish
responsibilities, duties, and | ||||||
15 | procedures for complying with the Comptroller's
Offset System | ||||||
16 | under Section 10.05 of the State Comptroller Act. All federal
| ||||||
17 | and State tax reporting and withholding requirements relating | ||||||
18 | to prize winners
under this Section shall be the responsibility | ||||||
19 | of the Department. Moneys from
this account may not be used to | ||||||
20 | pay amounts to deferred prize winners. Moneys
may not be | ||||||
21 | transferred from the State Lottery Fund to this account for | ||||||
22 | payment
of prizes under this Section until procedures are | ||||||
23 | implemented to comply with
the Comptroller's Offset System and | ||||||
24 | sufficient internal controls are in place
to validate prizes.
| ||||||
25 | (Source: P.A. 87-1197; 88-676, eff. 12-14-94.)
|
| |||||||
| |||||||
1 | (20 ILCS 1605/20.2)
| ||||||
2 | Sec. 20.2. Transfer of moneys from State Lottery Fund to | ||||||
3 | Common School Fund. If the State enters into a Management and | ||||||
4 | Concession Agreement, then notwithstanding Notwithstanding any | ||||||
5 | provision set forth in this Act or State law to the contrary, | ||||||
6 | on or before the last day of each fiscal year the State | ||||||
7 | Comptroller shall direct and the State Treasurer shall transfer | ||||||
8 | moneys in and revenues received by the State Lottery Fund to | ||||||
9 | the Lottery Supports Schools Fund, in accordance with Section | ||||||
10 | 2.5 of this Act Common School Fund .
| ||||||
11 | (Source: 95SB2595, HAM4.) | ||||||
12 | (20 ILCS 1605/20.3 new)
| ||||||
13 | Sec. 20.3. Lottery Supports Schools Fund. There is created | ||||||
14 | a Fund to be known as the Lottery Supports Schools Fund, which | ||||||
15 | is a non-appropriated trust fund held outside of the State | ||||||
16 | treasury. The Fund shall consist of moneys paid into it by the | ||||||
17 | Division as provided in this Law. The Illinois Gaming Board | ||||||
18 | shall certify each month to the State Board of Education the | ||||||
19 | proportion of lottery sales in each school district in relation | ||||||
20 | to statewide lottery sales. The moneys in the Lottery Supports | ||||||
21 | Schools Fund must be distributed monthly by the State Board of | ||||||
22 | Education to each school district based upon that school | ||||||
23 | district's portion of statewide lottery sales.
| ||||||
24 | (20 ILCS 1605/27) (from Ch. 120, par. 1177)
|
| |||||||
| |||||||
1 | Sec. 27. Contracts; investments; proceeds; Deferred | ||||||
2 | Lottery Prize Winners Trust Fund; disbursements; State Lottery | ||||||
3 | Fund; Lottery Concession Fund; Lottery Escrow Account. | ||||||
4 | (a) The State Treasurer may, with the consent of the | ||||||
5 | Director,
contract with any person or corporation, including, | ||||||
6 | without limitation,
a bank, banking house, trust company or | ||||||
7 | investment banking firm, to perform
such financial functions, | ||||||
8 | activities or services in connection with operation
of the | ||||||
9 | lottery as the State Treasurer and the Director may prescribe.
| ||||||
10 | (b) All proceeds from investments made pursuant to | ||||||
11 | contracts executed by
the State Treasurer, with the consent of | ||||||
12 | the Director,
to perform financial functions, activities or | ||||||
13 | services in connection with
operation of the lottery, shall be | ||||||
14 | deposited and held by the State Treasurer
as ex-officio | ||||||
15 | custodian thereof, separate and apart from all
public money or | ||||||
16 | funds of this State in a special trust fund outside the
State | ||||||
17 | treasury. Such trust fund shall be known as the "Deferred | ||||||
18 | Lottery
Prize Winners Trust Fund", and shall be administered by | ||||||
19 | the Director.
| ||||||
20 | The Director shall, at such times and in such amounts as | ||||||
21 | shall be
necessary, prepare and send to the State Comptroller | ||||||
22 | vouchers requesting
payment from the Deferred Lottery Prize | ||||||
23 | Winners Trust Fund to deferred
prize winners, in a manner that | ||||||
24 | will insure the timely
payment of such amounts owed.
| ||||||
25 | This Act shall constitute an irrevocable appropriation of | ||||||
26 | all amounts
necessary for that purpose, and the irrevocable and |
| |||||||
| |||||||
1 | continuing authority
for and direction to the Director and the | ||||||
2 | State Treasurer to
make the necessary payments out of such | ||||||
3 | trust fund for that purpose. In the event that the State shall | ||||||
4 | enter into a Management and Concession Agreement, this Section | ||||||
5 | 27(b) shall not apply to any prizes awarded after the closing | ||||||
6 | date of the Management and Concession Agreement.
| ||||||
7 | (c) Moneys invested pursuant to subsection (a) of this | ||||||
8 | Section may be
invested only in bonds, notes, certificates of | ||||||
9 | indebtedness, treasury
bills, or other securities constituting | ||||||
10 | direct obligations of the United
States of America and all | ||||||
11 | securities or obligations the prompt payment of
principal and | ||||||
12 | interest of which is guaranteed by a pledge of the full faith
| ||||||
13 | and credit of the United States of America. Interest earnings | ||||||
14 | on moneys in
the Deferred Lottery Prize Winners Trust Fund | ||||||
15 | shall remain in such fund
and be used to pay the winners of | ||||||
16 | lottery prizes deferred as to payment
until such obligations | ||||||
17 | are discharged.
Proceeds from bonds purchased and interest | ||||||
18 | accumulated as a result of a grand
prize multi-state game | ||||||
19 | ticket that goes unclaimed will be transferred after the
| ||||||
20 | termination of the relevant claim period directly from the | ||||||
21 | lottery's Deferred
Lottery Prize Winners Trust Fund to each | ||||||
22 | respective multi-state partner state
according to its | ||||||
23 | contribution ratio. All moneys invested pursuant to the terms | ||||||
24 | of any Management and Concession Agreement into which the State | ||||||
25 | may enter shall be subject to the provisions of this | ||||||
26 | subsection.
|
| |||||||
| |||||||
1 | (c-5) If a deferred lottery prize is not claimed within the | ||||||
2 | claim
period established by game rule, then the securities or | ||||||
3 | other instruments
purchased to fund the prize shall be | ||||||
4 | liquidated and the liquidated amount
shall be transferred to | ||||||
5 | the State Lottery Fund for disposition pursuant to
Section 19 | ||||||
6 | of
this Act. In the event that the State shall enter into a | ||||||
7 | Management and Concession Agreement, this Section 27(c-5) | ||||||
8 | shall not apply to any prizes awarded after the closing date of | ||||||
9 | the Management and Concession Agreement.
| ||||||
10 | (c-10) The Director may use a portion of the moneys in the
| ||||||
11 | Deferred
Lottery Prize Winners Trust Fund to purchase bonds
to | ||||||
12 | pay a lifetime prize if the prize duration exceeds the length | ||||||
13 | of available
securities. If the winner of a lifetime prize | ||||||
14 | exceeds his or her life
expectancy as determined using | ||||||
15 | actuarial assumptions and the securities or
moneys set aside to | ||||||
16 | pay the prize have been exhausted, moneys in the State
Lottery | ||||||
17 | Fund shall be used to make payments to the winner
for the | ||||||
18 | duration of the winner's life. In the event that the State | ||||||
19 | shall enter into a Management and Concession Agreement, this | ||||||
20 | Section 27(c-10) shall not apply to any prizes awarded after | ||||||
21 | the closing date of the Management and Concession Agreement.
| ||||||
22 | (c-15) From time to time, the Director may
request that the | ||||||
23 | State Comptroller transfer any excess moneys in the Deferred
| ||||||
24 | Lottery Prize Winners Trust Fund to the Lottery Fund. In the | ||||||
25 | event that the State shall enter into a Management and | ||||||
26 | Concession Agreement, this Section 27(c-15) shall not apply to |
| |||||||
| |||||||
1 | any prizes awarded after the closing date of the Management and | ||||||
2 | Concession Agreement.
| ||||||
3 | (c-20) In the event that the State shall enter into a | ||||||
4 | Management and Concession Agreement pursuant to which a | ||||||
5 | Concessionaire is authorized to manage or operate the Lottery, | ||||||
6 | there shall be created a fund to be known as the Lottery | ||||||
7 | Concession Trust Fund, which shall be a special | ||||||
8 | non-appropriated trust fund held outside of the State Treasury | ||||||
9 | and separate and apart from all public money and funds of this | ||||||
10 | State for the purpose of holding Concession revenues for the | ||||||
11 | purpose of transferring to the State its 20% share of gross | ||||||
12 | revenues after prize payouts. All proceeds from the sale of | ||||||
13 | Lottery tickets or shares and all other revenue from the | ||||||
14 | State's conduct of the Lottery as authorized under this | ||||||
15 | amendatory Act of the 95th General Assembly, including Lottery | ||||||
16 | revenues a Concessionaire may be eligible to receive under a | ||||||
17 | Management and Concession Agreement, with the exception of the | ||||||
18 | initial consideration distributed pursuant to Section 2.4, | ||||||
19 | shall be paid into the Fund. Within the Lottery Concession | ||||||
20 | Trust Fund, there shall be created sub-trusts for the purpose | ||||||
21 | of holding moneys for the exclusive benefit of the State and | ||||||
22 | recipients of Prize Claims. | ||||||
23 | The Fund shall begin to receive lottery proceeds and | ||||||
24 | revenues on the date that a Management and Concession Agreement | ||||||
25 | first becomes effective, and moneys in the Fund shall not at | ||||||
26 | any time during the term of such an agreement be appropriated |
| |||||||
| |||||||
1 | or diverted to any other use or purpose. The Fund shall be held | ||||||
2 | by an Illinois trustee designated pursuant to the Concession | ||||||
3 | and Management Agreement. All interest or other earnings | ||||||
4 | accruing or received on amounts in the Fund shall be credited | ||||||
5 | to and retained by the Fund. The Fund shall be held, | ||||||
6 | administered, invested, and disbursed in accordance with the | ||||||
7 | trust agreement and the Management and Concession Agreement. | ||||||
8 | The Illinois Gaming Board shall report quarterly to the | ||||||
9 | State Treasurer and the Governor a full and complete statement | ||||||
10 | of revenues into and expenses from the Lottery Concession Trust | ||||||
11 | Fund, which may be included in the reports required pursuant to | ||||||
12 | subsection (j) (j-1) of Section 9 of this Act. The statement | ||||||
13 | shall be public and copies shall be sent to the Speaker of the | ||||||
14 | House, the President of the Senate, and the Minority Leaders of | ||||||
15 | both houses. | ||||||
16 | (d) This amendatory Act of 1985 shall be construed | ||||||
17 | liberally to effect
the purposes of the Illinois Lottery Law.
| ||||||
18 | (Source: P.A. 89-466, eff. 6-13-96; 90-346, eff. 8-8-97; | ||||||
19 | 95SB2595, HAM4.)
| ||||||
20 | Section 10. If and only if Senate Bill 2595 of the 95th | ||||||
21 | General Assembly, as amended by House Amendment No. 4, becomes | ||||||
22 | law, then the Illinois Income Tax Act is amended by changing | ||||||
23 | Sections 201 and 901 as follows:
| ||||||
24 | (35 ILCS 5/201) (from Ch. 120, par. 2-201)
|
| |||||||
| |||||||
1 | Sec. 201. Tax Imposed.
| ||||||
2 | (a) In general. A tax measured by net income is hereby | ||||||
3 | imposed on every
individual, corporation, trust and estate for | ||||||
4 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
5 | of earning or receiving income in or
as a resident of this | ||||||
6 | State. Such tax shall be in addition to all other
occupation or | ||||||
7 | privilege taxes imposed by this State or by any municipal
| ||||||
8 | corporation or political subdivision thereof.
| ||||||
9 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
10 | Section shall be
determined as follows, except as adjusted by | ||||||
11 | subsection (d-1):
| ||||||
12 | (1) In the case of an individual, trust or estate, for | ||||||
13 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
14 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
15 | year.
| ||||||
16 | (2) In the case of an individual, trust or estate, for | ||||||
17 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
18 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
19 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
20 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
21 | 3% of the
taxpayer's net income for the period after June | ||||||
22 | 30, 1989, as calculated
under Section 202.3.
| ||||||
23 | (3) In the case of an individual, trust or estate, for | ||||||
24 | taxable years
beginning after June 30, 1989 and through the | ||||||
25 | taxable year in which a Management and Concession Agreement | ||||||
26 | is entered into under the Illinois Lottery Law , an amount |
| |||||||
| |||||||
1 | equal to 3% of the taxpayer's net
income for the taxable | ||||||
2 | year.
| ||||||
3 | (4) In the case of an individual, trust, or estate, for | ||||||
4 | taxable years beginning with the first taxable year after | ||||||
5 | the taxable year in which a Management and Concession | ||||||
6 | Agreement is entered into under the Illinois Lottery Law, | ||||||
7 | an amount equal to 3.25% of the taxpayer's net income for | ||||||
8 | the taxable year (Blank) .
| ||||||
9 | (5) (Blank).
| ||||||
10 | (6) In the case of a corporation, for taxable years
| ||||||
11 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
12 | taxpayer's net income for the taxable year.
| ||||||
13 | (7) In the case of a corporation, for taxable years | ||||||
14 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
15 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
16 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
17 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
18 | taxpayer's net
income for the period after June 30, 1989, | ||||||
19 | as calculated under Section
202.3.
| ||||||
20 | (8) In the case of a corporation, for taxable years | ||||||
21 | beginning after
June 30, 1989 and through the taxable year | ||||||
22 | in which a Management and Concession Agreement is entered | ||||||
23 | into under the Illinois Lottery Law , an amount equal to | ||||||
24 | 4.8% of the taxpayer's net income for the
taxable year.
| ||||||
25 | (9) In the case of a corporation, for taxable years | ||||||
26 | beginning with the first taxable year after the taxable |
| |||||||
| |||||||
1 | year in which a Management and Concession Agreement is | ||||||
2 | entered into under the Illinois Lottery Law, an amount | ||||||
3 | equal to 5.2% of the taxpayer's net income for the taxable | ||||||
4 | year. | ||||||
5 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
6 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
7 | income
tax, there is also hereby imposed the Personal Property | ||||||
8 | Tax Replacement
Income Tax measured by net income on every | ||||||
9 | corporation (including Subchapter
S corporations), partnership | ||||||
10 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
11 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
12 | income in or as a resident of this State. The Personal Property
| ||||||
13 | Tax Replacement Income Tax shall be in addition to the income | ||||||
14 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
15 | addition to all other
occupation or privilege taxes imposed by | ||||||
16 | this State or by any municipal
corporation or political | ||||||
17 | subdivision thereof.
| ||||||
18 | (d) Additional Personal Property Tax Replacement Income | ||||||
19 | Tax Rates.
The personal property tax replacement income tax | ||||||
20 | imposed by this subsection
and subsection (c) of this Section | ||||||
21 | in the case of a corporation, other
than a Subchapter S | ||||||
22 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
23 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
24 | income for the taxable year, except that
beginning on January | ||||||
25 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
26 | subsection shall be reduced to 2.5%, and in the case of a
|
| |||||||
| |||||||
1 | partnership, trust or a Subchapter S corporation shall be an | ||||||
2 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
3 | for the taxable year.
| ||||||
4 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
5 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
6 | Illinois Insurance Code,
whose state or country of domicile | ||||||
7 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
8 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
9 | are 50% or more of its total insurance
premiums as determined | ||||||
10 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
11 | that for purposes of this determination premiums from | ||||||
12 | reinsurance do
not include premiums from inter-affiliate | ||||||
13 | reinsurance arrangements),
beginning with taxable years ending | ||||||
14 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
15 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
16 | increased) to the rate at which the total amount of tax imposed | ||||||
17 | under this Act,
net of all credits allowed under this Act, | ||||||
18 | shall equal (i) the total amount of
tax that would be imposed | ||||||
19 | on the foreign insurer's net income allocable to
Illinois for | ||||||
20 | the taxable year by such foreign insurer's state or country of
| ||||||
21 | domicile if that net income were subject to all income taxes | ||||||
22 | and taxes
measured by net income imposed by such foreign | ||||||
23 | insurer's state or country of
domicile, net of all credits | ||||||
24 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
25 | income by the foreign insurer's state of domicile.
For the | ||||||
26 | purposes of this subsection (d-1), an inter-affiliate includes |
| |||||||
| |||||||
1 | a
mutual insurer under common management.
| ||||||
2 | (1) For the purposes of subsection (d-1), in no event | ||||||
3 | shall the sum of the
rates of tax imposed by subsections | ||||||
4 | (b) and (d) be reduced below the rate at
which the sum of:
| ||||||
5 | (A) the total amount of tax imposed on such foreign | ||||||
6 | insurer under
this Act for a taxable year, net of all | ||||||
7 | credits allowed under this Act, plus
| ||||||
8 | (B) the privilege tax imposed by Section 409 of the | ||||||
9 | Illinois Insurance
Code, the fire insurance company | ||||||
10 | tax imposed by Section 12 of the Fire
Investigation | ||||||
11 | Act, and the fire department taxes imposed under | ||||||
12 | Section 11-10-1
of the Illinois Municipal Code,
| ||||||
13 | equals 1.25% for taxable years ending prior to December 31, | ||||||
14 | 2003, or
1.75% for taxable years ending on or after | ||||||
15 | December 31, 2003, of the net
taxable premiums written for | ||||||
16 | the taxable year,
as described by subsection (1) of Section | ||||||
17 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
18 | no event increase the rates imposed under subsections
(b) | ||||||
19 | and (d).
| ||||||
20 | (2) Any reduction in the rates of tax imposed by this | ||||||
21 | subsection shall be
applied first against the rates imposed | ||||||
22 | by subsection (b) and only after the
tax imposed by | ||||||
23 | subsection (a) net of all credits allowed under this | ||||||
24 | Section
other than the credit allowed under subsection (i) | ||||||
25 | has been reduced to zero,
against the rates imposed by | ||||||
26 | subsection (d).
|
| |||||||
| |||||||
1 | This subsection (d-1) is exempt from the provisions of | ||||||
2 | Section 250.
| ||||||
3 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
4 | against the Personal Property Tax Replacement Income Tax for
| ||||||
5 | investment in qualified property.
| ||||||
6 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
7 | of
the basis of qualified property placed in service during | ||||||
8 | the taxable year,
provided such property is placed in | ||||||
9 | service on or after
July 1, 1984. There shall be allowed an | ||||||
10 | additional credit equal
to .5% of the basis of qualified | ||||||
11 | property placed in service during the
taxable year, | ||||||
12 | provided such property is placed in service on or
after | ||||||
13 | July 1, 1986, and the taxpayer's base employment
within | ||||||
14 | Illinois has increased by 1% or more over the preceding | ||||||
15 | year as
determined by the taxpayer's employment records | ||||||
16 | filed with the
Illinois Department of Employment Security. | ||||||
17 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
18 | met the 1% growth in base employment for
the first year in | ||||||
19 | which they file employment records with the Illinois
| ||||||
20 | Department of Employment Security. The provisions added to | ||||||
21 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
22 | Act 87-895) shall be
construed as declaratory of existing | ||||||
23 | law and not as a new enactment. If,
in any year, the | ||||||
24 | increase in base employment within Illinois over the
| ||||||
25 | preceding year is less than 1%, the additional credit shall | ||||||
26 | be limited to that
percentage times a fraction, the |
| |||||||
| |||||||
1 | numerator of which is .5% and the denominator
of which is | ||||||
2 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
3 | not be
allowed to the extent that it would reduce a | ||||||
4 | taxpayer's liability in any tax
year below zero, nor may | ||||||
5 | any credit for qualified property be allowed for any
year | ||||||
6 | other than the year in which the property was placed in | ||||||
7 | service in
Illinois. For tax years ending on or after | ||||||
8 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
9 | credit shall be allowed for the tax year in
which the | ||||||
10 | property is placed in service, or, if the amount of the | ||||||
11 | credit
exceeds the tax liability for that year, whether it | ||||||
12 | exceeds the original
liability or the liability as later | ||||||
13 | amended, such excess may be carried
forward and applied to | ||||||
14 | the tax liability of the 5 taxable years following
the | ||||||
15 | excess credit years if the taxpayer (i) makes investments | ||||||
16 | which cause
the creation of a minimum of 2,000 full-time | ||||||
17 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
18 | enterprise zone established pursuant to the Illinois
| ||||||
19 | Enterprise Zone Act and (iii) is certified by the | ||||||
20 | Department of Commerce
and Community Affairs (now | ||||||
21 | Department of Commerce and Economic Opportunity) as | ||||||
22 | complying with the requirements specified in
clause (i) and | ||||||
23 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
24 | Community Affairs (now Department of Commerce and Economic | ||||||
25 | Opportunity) shall notify the Department of Revenue of all | ||||||
26 | such
certifications immediately. For tax years ending |
| |||||||
| |||||||
1 | after December 31, 1988,
the credit shall be allowed for | ||||||
2 | the tax year in which the property is
placed in service, | ||||||
3 | or, if the amount of the credit exceeds the tax
liability | ||||||
4 | for that year, whether it exceeds the original liability or | ||||||
5 | the
liability as later amended, such excess may be carried | ||||||
6 | forward and applied
to the tax liability of the 5 taxable | ||||||
7 | years following the excess credit
years. The credit shall | ||||||
8 | be applied to the earliest year for which there is
a | ||||||
9 | liability. If there is credit from more than one tax year | ||||||
10 | that is
available to offset a liability, earlier credit | ||||||
11 | shall be applied first.
| ||||||
12 | (2) The term "qualified property" means property | ||||||
13 | which:
| ||||||
14 | (A) is tangible, whether new or used, including | ||||||
15 | buildings and structural
components of buildings and | ||||||
16 | signs that are real property, but not including
land or | ||||||
17 | improvements to real property that are not a structural | ||||||
18 | component of a
building such as landscaping, sewer | ||||||
19 | lines, local access roads, fencing, parking
lots, and | ||||||
20 | other appurtenances;
| ||||||
21 | (B) is depreciable pursuant to Section 167 of the | ||||||
22 | Internal Revenue Code,
except that "3-year property" | ||||||
23 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
24 | eligible for the credit provided by this subsection | ||||||
25 | (e);
| ||||||
26 | (C) is acquired by purchase as defined in Section |
| |||||||
| |||||||
1 | 179(d) of
the Internal Revenue Code;
| ||||||
2 | (D) is used in Illinois by a taxpayer who is | ||||||
3 | primarily engaged in
manufacturing, or in mining coal | ||||||
4 | or fluorite, or in retailing, or was placed in service | ||||||
5 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
6 | Zone established pursuant to the River Edge | ||||||
7 | Redevelopment Zone Act; and
| ||||||
8 | (E) has not previously been used in Illinois in | ||||||
9 | such a manner and by
such a person as would qualify for | ||||||
10 | the credit provided by this subsection
(e) or | ||||||
11 | subsection (f).
| ||||||
12 | (3) For purposes of this subsection (e), | ||||||
13 | "manufacturing" means
the material staging and production | ||||||
14 | of tangible personal property by
procedures commonly | ||||||
15 | regarded as manufacturing, processing, fabrication, or
| ||||||
16 | assembling which changes some existing material into new | ||||||
17 | shapes, new
qualities, or new combinations. For purposes of | ||||||
18 | this subsection
(e) the term "mining" shall have the same | ||||||
19 | meaning as the term "mining" in
Section 613(c) of the | ||||||
20 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
21 | the term "retailing" means the sale of tangible personal | ||||||
22 | property or
services rendered in conjunction with the sale | ||||||
23 | of tangible consumer goods
or commodities.
| ||||||
24 | (4) The basis of qualified property shall be the basis
| ||||||
25 | used to compute the depreciation deduction for federal | ||||||
26 | income tax purposes.
|
| |||||||
| |||||||
1 | (5) If the basis of the property for federal income tax | ||||||
2 | depreciation
purposes is increased after it has been placed | ||||||
3 | in service in Illinois by
the taxpayer, the amount of such | ||||||
4 | increase shall be deemed property placed
in service on the | ||||||
5 | date of such increase in basis.
| ||||||
6 | (6) The term "placed in service" shall have the same
| ||||||
7 | meaning as under Section 46 of the Internal Revenue Code.
| ||||||
8 | (7) If during any taxable year, any property ceases to
| ||||||
9 | be qualified property in the hands of the taxpayer within | ||||||
10 | 48 months after
being placed in service, or the situs of | ||||||
11 | any qualified property is
moved outside Illinois within 48 | ||||||
12 | months after being placed in service, the
Personal Property | ||||||
13 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
14 | increased. Such increase shall be determined by (i) | ||||||
15 | recomputing the
investment credit which would have been | ||||||
16 | allowed for the year in which
credit for such property was | ||||||
17 | originally allowed by eliminating such
property from such | ||||||
18 | computation and, (ii) subtracting such recomputed credit
| ||||||
19 | from the amount of credit previously allowed. For the | ||||||
20 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
21 | qualified property resulting
from a redetermination of the | ||||||
22 | purchase price shall be deemed a disposition
of qualified | ||||||
23 | property to the extent of such reduction.
| ||||||
24 | (8) Unless the investment credit is extended by law, | ||||||
25 | the
basis of qualified property shall not include costs | ||||||
26 | incurred after
December 31, 2008, except for costs incurred |
| |||||||
| |||||||
1 | pursuant to a binding
contract entered into on or before | ||||||
2 | December 31, 2008.
| ||||||
3 | (9) Each taxable year ending before December 31, 2000, | ||||||
4 | a partnership may
elect to pass through to its
partners the | ||||||
5 | credits to which the partnership is entitled under this | ||||||
6 | subsection
(e) for the taxable year. A partner may use the | ||||||
7 | credit allocated to him or her
under this paragraph only | ||||||
8 | against the tax imposed in subsections (c) and (d) of
this | ||||||
9 | Section. If the partnership makes that election, those | ||||||
10 | credits shall be
allocated among the partners in the | ||||||
11 | partnership in accordance with the rules
set forth in | ||||||
12 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
13 | promulgated under that Section, and the allocated amount of | ||||||
14 | the credits shall
be allowed to the partners for that | ||||||
15 | taxable year. The partnership shall make
this election on | ||||||
16 | its Personal Property Tax Replacement Income Tax return for
| ||||||
17 | that taxable year. The election to pass through the credits | ||||||
18 | shall be
irrevocable.
| ||||||
19 | For taxable years ending on or after December 31, 2000, | ||||||
20 | a
partner that qualifies its
partnership for a subtraction | ||||||
21 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
22 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
23 | S
corporation for a subtraction under subparagraph (S) of | ||||||
24 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
25 | allowed a credit under this subsection
(e) equal to its | ||||||
26 | share of the credit earned under this subsection (e) during
|
| |||||||
| |||||||
1 | the taxable year by the partnership or Subchapter S | ||||||
2 | corporation, determined in
accordance with the | ||||||
3 | determination of income and distributive share of
income | ||||||
4 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
5 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
6 | of Section 250.
| ||||||
7 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
8 | Redevelopment Zone.
| ||||||
9 | (1) A taxpayer shall be allowed a credit against the | ||||||
10 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
11 | investment in qualified
property which is placed in service | ||||||
12 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
13 | Enterprise Zone Act or, for property placed in service on | ||||||
14 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
15 | established pursuant to the River Edge Redevelopment Zone | ||||||
16 | Act. For partners, shareholders
of Subchapter S | ||||||
17 | corporations, and owners of limited liability companies,
| ||||||
18 | if the liability company is treated as a partnership for | ||||||
19 | purposes of
federal and State income taxation, there shall | ||||||
20 | be allowed a credit under
this subsection (f) to be | ||||||
21 | determined in accordance with the determination
of income | ||||||
22 | and distributive share of income under Sections 702 and 704 | ||||||
23 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
24 | shall be .5% of the
basis for such property. The credit | ||||||
25 | shall be available only in the taxable
year in which the | ||||||
26 | property is placed in service in the Enterprise Zone or |
| |||||||
| |||||||
1 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
2 | the extent that it would reduce a taxpayer's
liability for | ||||||
3 | the tax imposed by subsections (a) and (b) of this Section | ||||||
4 | to
below zero. For tax years ending on or after December | ||||||
5 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
6 | which the property is placed in
service, or, if the amount | ||||||
7 | of the credit exceeds the tax liability for that
year, | ||||||
8 | whether it exceeds the original liability or the liability | ||||||
9 | as later
amended, such excess may be carried forward and | ||||||
10 | applied to the tax
liability of the 5 taxable years | ||||||
11 | following the excess credit year.
The credit shall be | ||||||
12 | applied to the earliest year for which there is a
| ||||||
13 | liability. If there is credit from more than one tax year | ||||||
14 | that is available
to offset a liability, the credit | ||||||
15 | accruing first in time shall be applied
first.
| ||||||
16 | (2) The term qualified property means property which:
| ||||||
17 | (A) is tangible, whether new or used, including | ||||||
18 | buildings and
structural components of buildings;
| ||||||
19 | (B) is depreciable pursuant to Section 167 of the | ||||||
20 | Internal Revenue
Code, except that "3-year property" | ||||||
21 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
22 | eligible for the credit provided by this subsection | ||||||
23 | (f);
| ||||||
24 | (C) is acquired by purchase as defined in Section | ||||||
25 | 179(d) of
the Internal Revenue Code;
| ||||||
26 | (D) is used in the Enterprise Zone or River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone by the taxpayer; and
| ||||||
2 | (E) has not been previously used in Illinois in | ||||||
3 | such a manner and by
such a person as would qualify for | ||||||
4 | the credit provided by this subsection
(f) or | ||||||
5 | subsection (e).
| ||||||
6 | (3) The basis of qualified property shall be the basis | ||||||
7 | used to compute
the depreciation deduction for federal | ||||||
8 | income tax purposes.
| ||||||
9 | (4) If the basis of the property for federal income tax | ||||||
10 | depreciation
purposes is increased after it has been placed | ||||||
11 | in service in the Enterprise
Zone or River Edge | ||||||
12 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
13 | increase shall be deemed property
placed in service on the | ||||||
14 | date of such increase in basis.
| ||||||
15 | (5) The term "placed in service" shall have the same | ||||||
16 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
17 | (6) If during any taxable year, any property ceases to | ||||||
18 | be qualified
property in the hands of the taxpayer within | ||||||
19 | 48 months after being placed
in service, or the situs of | ||||||
20 | any qualified property is moved outside the
Enterprise Zone | ||||||
21 | or River Edge Redevelopment Zone within 48 months after | ||||||
22 | being placed in service, the tax
imposed under subsections | ||||||
23 | (a) and (b) of this Section for such taxable year
shall be | ||||||
24 | increased. Such increase shall be determined by (i) | ||||||
25 | recomputing
the investment credit which would have been | ||||||
26 | allowed for the year in which
credit for such property was |
| |||||||
| |||||||
1 | originally allowed by eliminating such
property from such | ||||||
2 | computation, and (ii) subtracting such recomputed credit
| ||||||
3 | from the amount of credit previously allowed. For the | ||||||
4 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
5 | qualified property resulting
from a redetermination of the | ||||||
6 | purchase price shall be deemed a disposition
of qualified | ||||||
7 | property to the extent of such reduction.
| ||||||
8 | (7) There shall be allowed an additional credit equal | ||||||
9 | to 0.5% of the basis of qualified property placed in | ||||||
10 | service during the taxable year in a River Edge | ||||||
11 | Redevelopment Zone, provided such property is placed in | ||||||
12 | service on or after July 1, 2006, and the taxpayer's base | ||||||
13 | employment within Illinois has increased by 1% or more over | ||||||
14 | the preceding year as determined by the taxpayer's | ||||||
15 | employment records filed with the Illinois Department of | ||||||
16 | Employment Security. Taxpayers who are new to Illinois | ||||||
17 | shall be deemed to have met the 1% growth in base | ||||||
18 | employment for the first year in which they file employment | ||||||
19 | records with the Illinois Department of Employment | ||||||
20 | Security. If, in any year, the increase in base employment | ||||||
21 | within Illinois over the preceding year is less than 1%, | ||||||
22 | the additional credit shall be limited to that percentage | ||||||
23 | times a fraction, the numerator of which is 0.5% and the | ||||||
24 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
25 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
26 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
|
| |||||||
| |||||||
1 | (1) A taxpayer conducting a trade or business in an | ||||||
2 | enterprise zone
or a High Impact Business designated by the | ||||||
3 | Department of Commerce and
Economic Opportunity or for | ||||||
4 | taxable years ending on or after December 31, 2006, in a | ||||||
5 | River Edge Redevelopment Zone conducting a trade or | ||||||
6 | business in a federally designated
Foreign Trade Zone or | ||||||
7 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
8 | by subsections (a) and (b) of this Section in the amount of | ||||||
9 | $500
per eligible employee hired to work in the zone during | ||||||
10 | the taxable year.
| ||||||
11 | (2) To qualify for the credit:
| ||||||
12 | (A) the taxpayer must hire 5 or more eligible | ||||||
13 | employees to work in an
enterprise zone, River Edge | ||||||
14 | Redevelopment Zone, or federally designated Foreign | ||||||
15 | Trade Zone or Sub-Zone
during the taxable year;
| ||||||
16 | (B) the taxpayer's total employment within the | ||||||
17 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
18 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
19 | must
increase by 5 or more full-time employees beyond | ||||||
20 | the total employed in that
zone at the end of the | ||||||
21 | previous tax year for which a jobs tax
credit under | ||||||
22 | this Section was taken, or beyond the total employed by | ||||||
23 | the
taxpayer as of December 31, 1985, whichever is | ||||||
24 | later; and
| ||||||
25 | (C) the eligible employees must be employed 180 | ||||||
26 | consecutive days in
order to be deemed hired for |
| |||||||
| |||||||
1 | purposes of this subsection.
| ||||||
2 | (3) An "eligible employee" means an employee who is:
| ||||||
3 | (A) Certified by the Department of Commerce and | ||||||
4 | Economic Opportunity
as "eligible for services" | ||||||
5 | pursuant to regulations promulgated in
accordance with | ||||||
6 | Title II of the Job Training Partnership Act, Training
| ||||||
7 | Services for the Disadvantaged or Title III of the Job | ||||||
8 | Training Partnership
Act, Employment and Training | ||||||
9 | Assistance for Dislocated Workers Program.
| ||||||
10 | (B) Hired after the enterprise zone, River Edge | ||||||
11 | Redevelopment Zone, or federally designated Foreign
| ||||||
12 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
13 | business was located in that zone, whichever is later.
| ||||||
14 | (C) Employed in the enterprise zone, River Edge | ||||||
15 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
16 | An employee is employed in an
enterprise zone or | ||||||
17 | federally designated Foreign Trade Zone or Sub-Zone
if | ||||||
18 | his services are rendered there or it is the base of
| ||||||
19 | operations for the services performed.
| ||||||
20 | (D) A full-time employee working 30 or more hours | ||||||
21 | per week.
| ||||||
22 | (4) For tax years ending on or after December 31, 1985 | ||||||
23 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
24 | for the tax year in which
the eligible employees are hired. | ||||||
25 | For tax years ending on or after
December 31, 1988, the | ||||||
26 | credit shall be allowed for the tax year immediately
|
| |||||||
| |||||||
1 | following the tax year in which the eligible employees are | ||||||
2 | hired. If the
amount of the credit exceeds the tax | ||||||
3 | liability for that year, whether it
exceeds the original | ||||||
4 | liability or the liability as later amended, such
excess | ||||||
5 | may be carried forward and applied to the tax liability of | ||||||
6 | the 5
taxable years following the excess credit year. The | ||||||
7 | credit shall be
applied to the earliest year for which | ||||||
8 | there is a liability. If there is
credit from more than one | ||||||
9 | tax year that is available to offset a liability,
earlier | ||||||
10 | credit shall be applied first.
| ||||||
11 | (5) The Department of Revenue shall promulgate such | ||||||
12 | rules and regulations
as may be deemed necessary to carry | ||||||
13 | out the purposes of this subsection (g).
| ||||||
14 | (6) The credit shall be available for eligible | ||||||
15 | employees hired on or
after January 1, 1986.
| ||||||
16 | (h) Investment credit; High Impact Business.
| ||||||
17 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
18 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
19 | allowed a credit
against the tax imposed by subsections (a) | ||||||
20 | and (b) of this Section for
investment in qualified
| ||||||
21 | property which is placed in service by a Department of | ||||||
22 | Commerce and Economic Opportunity
designated High Impact | ||||||
23 | Business. The credit shall be .5% of the basis
for such | ||||||
24 | property. The credit shall not be available (i) until the | ||||||
25 | minimum
investments in qualified property set forth in | ||||||
26 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
|
| |||||||
| |||||||
1 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
2 | time authorized in subsection (b-5) of the Illinois
| ||||||
3 | Enterprise Zone Act for entities designated as High Impact | ||||||
4 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
5 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
6 | Act, and shall not be allowed to the extent that it would
| ||||||
7 | reduce a taxpayer's liability for the tax imposed by | ||||||
8 | subsections (a) and (b) of
this Section to below zero. The | ||||||
9 | credit applicable to such investments shall be
taken in the | ||||||
10 | taxable year in which such investments have been completed. | ||||||
11 | The
credit for additional investments beyond the minimum | ||||||
12 | investment by a designated
high impact business authorized | ||||||
13 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
14 | Enterprise Zone Act shall be available only in the taxable | ||||||
15 | year in
which the property is placed in service and shall | ||||||
16 | not be allowed to the extent
that it would reduce a | ||||||
17 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
18 | and (b) of this Section to below zero.
For tax years ending | ||||||
19 | on or after December 31, 1987, the credit shall be
allowed | ||||||
20 | for the tax year in which the property is placed in | ||||||
21 | service, or, if
the amount of the credit exceeds the tax | ||||||
22 | liability for that year, whether
it exceeds the original | ||||||
23 | liability or the liability as later amended, such
excess | ||||||
24 | may be carried forward and applied to the tax liability of | ||||||
25 | the 5
taxable years following the excess credit year. The | ||||||
26 | credit shall be
applied to the earliest year for which |
| |||||||
| |||||||
1 | there is a liability. If there is
credit from more than one | ||||||
2 | tax year that is available to offset a liability,
the | ||||||
3 | credit accruing first in time shall be applied first.
| ||||||
4 | Changes made in this subdivision (h)(1) by Public Act | ||||||
5 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
6 | reflect existing law.
| ||||||
7 | (2) The term qualified property means property which:
| ||||||
8 | (A) is tangible, whether new or used, including | ||||||
9 | buildings and
structural components of buildings;
| ||||||
10 | (B) is depreciable pursuant to Section 167 of the | ||||||
11 | Internal Revenue
Code, except that "3-year property" | ||||||
12 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
13 | eligible for the credit provided by this subsection | ||||||
14 | (h);
| ||||||
15 | (C) is acquired by purchase as defined in Section | ||||||
16 | 179(d) of the
Internal Revenue Code; and
| ||||||
17 | (D) is not eligible for the Enterprise Zone | ||||||
18 | Investment Credit provided
by subsection (f) of this | ||||||
19 | Section.
| ||||||
20 | (3) The basis of qualified property shall be the basis | ||||||
21 | used to compute
the depreciation deduction for federal | ||||||
22 | income tax purposes.
| ||||||
23 | (4) If the basis of the property for federal income tax | ||||||
24 | depreciation
purposes is increased after it has been placed | ||||||
25 | in service in a federally
designated Foreign Trade Zone or | ||||||
26 | Sub-Zone located in Illinois by the taxpayer,
the amount of |
| |||||||
| |||||||
1 | such increase shall be deemed property placed in service on
| ||||||
2 | the date of such increase in basis.
| ||||||
3 | (5) The term "placed in service" shall have the same | ||||||
4 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
5 | (6) If during any taxable year ending on or before | ||||||
6 | December 31, 1996,
any property ceases to be qualified
| ||||||
7 | property in the hands of the taxpayer within 48 months | ||||||
8 | after being placed
in service, or the situs of any | ||||||
9 | qualified property is moved outside
Illinois within 48 | ||||||
10 | months after being placed in service, the tax imposed
under | ||||||
11 | subsections (a) and (b) of this Section for such taxable | ||||||
12 | year shall
be increased. Such increase shall be determined | ||||||
13 | by (i) recomputing the
investment credit which would have | ||||||
14 | been allowed for the year in which
credit for such property | ||||||
15 | was originally allowed by eliminating such
property from | ||||||
16 | such computation, and (ii) subtracting such recomputed | ||||||
17 | credit
from the amount of credit previously allowed. For | ||||||
18 | the purposes of this
paragraph (6), a reduction of the | ||||||
19 | basis of qualified property resulting
from a | ||||||
20 | redetermination of the purchase price shall be deemed a | ||||||
21 | disposition
of qualified property to the extent of such | ||||||
22 | reduction.
| ||||||
23 | (7) Beginning with tax years ending after December 31, | ||||||
24 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
25 | subsection (h) and thereby is
granted a tax abatement and | ||||||
26 | the taxpayer relocates its entire facility in
violation of |
| |||||||
| |||||||
1 | the explicit terms and length of the contract under Section
| ||||||
2 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
3 | subsections
(a) and (b) of this Section shall be increased | ||||||
4 | for the taxable year
in which the taxpayer relocated its | ||||||
5 | facility by an amount equal to the
amount of credit | ||||||
6 | received by the taxpayer under this subsection (h).
| ||||||
7 | (i) Credit for Personal Property Tax Replacement Income | ||||||
8 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
9 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
10 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
11 | (d) of this Section. This credit shall be computed by | ||||||
12 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
13 | Section by a fraction, the numerator
of which is base income | ||||||
14 | allocable to Illinois and the denominator of which is
Illinois | ||||||
15 | base income, and further multiplying the product by the tax | ||||||
16 | rate
imposed by subsections (a) and (b) of this Section.
| ||||||
17 | Any credit earned on or after December 31, 1986 under
this | ||||||
18 | subsection which is unused in the year
the credit is computed | ||||||
19 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
20 | and (b) for that year (whether it exceeds the original
| ||||||
21 | liability or the liability as later amended) may be carried | ||||||
22 | forward and
applied to the tax liability imposed by subsections | ||||||
23 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
24 | year, provided that no credit may
be carried forward to any | ||||||
25 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
26 | applied first to the earliest year for which there is a |
| |||||||
| |||||||
1 | liability. If
there is a credit under this subsection from more | ||||||
2 | than one tax year that is
available to offset a liability the | ||||||
3 | earliest credit arising under this
subsection shall be applied | ||||||
4 | first.
| ||||||
5 | If, during any taxable year ending on or after December 31, | ||||||
6 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
7 | Section for which a taxpayer
has claimed a credit under this | ||||||
8 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
9 | shall also be reduced. Such reduction shall be
determined by | ||||||
10 | recomputing the credit to take into account the reduced tax
| ||||||
11 | imposed by subsections (c) and (d). If any portion of the
| ||||||
12 | reduced amount of credit has been carried to a different | ||||||
13 | taxable year, an
amended return shall be filed for such taxable | ||||||
14 | year to reduce the amount of
credit claimed.
| ||||||
15 | (j) Training expense credit. Beginning with tax years | ||||||
16 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
17 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
18 | imposed by subsections (a) and (b) under this Section
for all | ||||||
19 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
20 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
21 | of Illinois by a taxpayer, for educational or vocational | ||||||
22 | training in
semi-technical or technical fields or semi-skilled | ||||||
23 | or skilled fields, which
were deducted from gross income in the | ||||||
24 | computation of taxable income. The
credit against the tax | ||||||
25 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
26 | training expenses. For partners, shareholders of subchapter S
|
| |||||||
| |||||||
1 | corporations, and owners of limited liability companies, if the | ||||||
2 | liability
company is treated as a partnership for purposes of | ||||||
3 | federal and State income
taxation, there shall be allowed a | ||||||
4 | credit under this subsection (j) to be
determined in accordance | ||||||
5 | with the determination of income and distributive
share of | ||||||
6 | income under Sections 702 and 704 and subchapter S of the | ||||||
7 | Internal
Revenue Code.
| ||||||
8 | Any credit allowed under this subsection which is unused in | ||||||
9 | the year
the credit is earned may be carried forward to each of | ||||||
10 | the 5 taxable
years following the year for which the credit is | ||||||
11 | first computed until it is
used. This credit shall be applied | ||||||
12 | first to the earliest year for which
there is a liability. If | ||||||
13 | there is a credit under this subsection from more
than one tax | ||||||
14 | year that is available to offset a liability the earliest
| ||||||
15 | credit arising under this subsection shall be applied first. No | ||||||
16 | carryforward
credit may be claimed in any tax year ending on or | ||||||
17 | after
December 31, 2003.
| ||||||
18 | (k) Research and development credit.
| ||||||
19 | For tax years ending after July 1, 1990 and prior to
| ||||||
20 | December 31, 2003, and beginning again for tax years ending on | ||||||
21 | or after December 31, 2004, a taxpayer shall be
allowed a | ||||||
22 | credit against the tax imposed by subsections (a) and (b) of | ||||||
23 | this
Section for increasing research activities in this State. | ||||||
24 | The credit
allowed against the tax imposed by subsections (a) | ||||||
25 | and (b) shall be equal
to 6 1/2% of the qualifying expenditures | ||||||
26 | for increasing research activities
in this State. For partners, |
| |||||||
| |||||||
1 | shareholders of subchapter S corporations, and
owners of | ||||||
2 | limited liability companies, if the liability company is | ||||||
3 | treated as a
partnership for purposes of federal and State | ||||||
4 | income taxation, there shall be
allowed a credit under this | ||||||
5 | subsection to be determined in accordance with the
| ||||||
6 | determination of income and distributive share of income under | ||||||
7 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
8 | Code.
| ||||||
9 | For purposes of this subsection, "qualifying expenditures" | ||||||
10 | means the
qualifying expenditures as defined for the federal | ||||||
11 | credit for increasing
research activities which would be | ||||||
12 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
13 | which are conducted in this State, "qualifying
expenditures for | ||||||
14 | increasing research activities in this State" means the
excess | ||||||
15 | of qualifying expenditures for the taxable year in which | ||||||
16 | incurred
over qualifying expenditures for the base period, | ||||||
17 | "qualifying expenditures
for the base period" means the average | ||||||
18 | of the qualifying expenditures for
each year in the base | ||||||
19 | period, and "base period" means the 3 taxable years
immediately | ||||||
20 | preceding the taxable year for which the determination is
being | ||||||
21 | made.
| ||||||
22 | Any credit in excess of the tax liability for the taxable | ||||||
23 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
24 | unused credit shown on its final completed return carried over | ||||||
25 | as a credit
against the tax liability for the following 5 | ||||||
26 | taxable years or until it has
been fully used, whichever occurs |
| |||||||
| |||||||
1 | first; provided that no credit earned in a tax year ending | ||||||
2 | prior to December 31, 2003 may be carried forward to any year | ||||||
3 | ending on or after December 31, 2003.
| ||||||
4 | If an unused credit is carried forward to a given year from | ||||||
5 | 2 or more
earlier years, that credit arising in the earliest | ||||||
6 | year will be applied
first against the tax liability for the | ||||||
7 | given year. If a tax liability for
the given year still | ||||||
8 | remains, the credit from the next earliest year will
then be | ||||||
9 | applied, and so on, until all credits have been used or no tax
| ||||||
10 | liability for the given year remains. Any remaining unused | ||||||
11 | credit or
credits then will be carried forward to the next | ||||||
12 | following year in which a
tax liability is incurred, except | ||||||
13 | that no credit can be carried forward to
a year which is more | ||||||
14 | than 5 years after the year in which the expense for
which the | ||||||
15 | credit is given was incurred.
| ||||||
16 | No inference shall be drawn from this amendatory Act of the | ||||||
17 | 91st General
Assembly in construing this Section for taxable | ||||||
18 | years beginning before January
1, 1999.
| ||||||
19 | (l) Environmental Remediation Tax Credit.
| ||||||
20 | (i) For tax years ending after December 31, 1997 and on | ||||||
21 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
22 | credit against the tax
imposed by subsections (a) and (b) | ||||||
23 | of this Section for certain amounts paid
for unreimbursed | ||||||
24 | eligible remediation costs, as specified in this | ||||||
25 | subsection.
For purposes of this Section, "unreimbursed | ||||||
26 | eligible remediation costs" means
costs approved by the |
| |||||||
| |||||||
1 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
2 | Section 58.14 of the Environmental Protection Act that were | ||||||
3 | paid in performing
environmental remediation at a site for | ||||||
4 | which a No Further Remediation Letter
was issued by the | ||||||
5 | Agency and recorded under Section 58.10 of the | ||||||
6 | Environmental
Protection Act. The credit must be claimed | ||||||
7 | for the taxable year in which
Agency approval of the | ||||||
8 | eligible remediation costs is granted. The credit is
not | ||||||
9 | available to any taxpayer if the taxpayer or any related | ||||||
10 | party caused or
contributed to, in any material respect, a | ||||||
11 | release of regulated substances on,
in, or under the site | ||||||
12 | that was identified and addressed by the remedial
action | ||||||
13 | pursuant to the Site Remediation Program of the | ||||||
14 | Environmental Protection
Act. After the Pollution Control | ||||||
15 | Board rules are adopted pursuant to the
Illinois | ||||||
16 | Administrative Procedure Act for the administration and | ||||||
17 | enforcement of
Section 58.9 of the Environmental | ||||||
18 | Protection Act, determinations as to credit
availability | ||||||
19 | for purposes of this Section shall be made consistent with | ||||||
20 | those
rules. For purposes of this Section, "taxpayer" | ||||||
21 | includes a person whose tax
attributes the taxpayer has | ||||||
22 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
23 | and "related party" includes the persons disallowed a | ||||||
24 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
25 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
26 | a related taxpayer, as well as any of its
partners. The |
| |||||||
| |||||||
1 | credit allowed against the tax imposed by subsections (a) | ||||||
2 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
3 | remediation costs in
excess of $100,000 per site, except | ||||||
4 | that the $100,000 threshold shall not apply
to any site | ||||||
5 | contained in an enterprise zone as determined by the | ||||||
6 | Department of
Commerce and Community Affairs (now | ||||||
7 | Department of Commerce and Economic Opportunity). The | ||||||
8 | total credit allowed shall not exceed
$40,000 per year with | ||||||
9 | a maximum total of $150,000 per site. For partners and
| ||||||
10 | shareholders of subchapter S corporations, there shall be | ||||||
11 | allowed a credit
under this subsection to be determined in | ||||||
12 | accordance with the determination of
income and | ||||||
13 | distributive share of income under Sections 702 and 704 and
| ||||||
14 | subchapter S of the Internal Revenue Code.
| ||||||
15 | (ii) A credit allowed under this subsection that is | ||||||
16 | unused in the year
the credit is earned may be carried | ||||||
17 | forward to each of the 5 taxable years
following the year | ||||||
18 | for which the credit is first earned until it is used.
The | ||||||
19 | term "unused credit" does not include any amounts of | ||||||
20 | unreimbursed eligible
remediation costs in excess of the | ||||||
21 | maximum credit per site authorized under
paragraph (i). | ||||||
22 | This credit shall be applied first to the earliest year
for | ||||||
23 | which there is a liability. If there is a credit under this | ||||||
24 | subsection
from more than one tax year that is available to | ||||||
25 | offset a liability, the
earliest credit arising under this | ||||||
26 | subsection shall be applied first. A
credit allowed under |
| |||||||
| |||||||
1 | this subsection may be sold to a buyer as part of a sale
of | ||||||
2 | all or part of the remediation site for which the credit | ||||||
3 | was granted. The
purchaser of a remediation site and the | ||||||
4 | tax credit shall succeed to the unused
credit and remaining | ||||||
5 | carry-forward period of the seller. To perfect the
| ||||||
6 | transfer, the assignor shall record the transfer in the | ||||||
7 | chain of title for the
site and provide written notice to | ||||||
8 | the Director of the Illinois Department of
Revenue of the | ||||||
9 | assignor's intent to sell the remediation site and the | ||||||
10 | amount of
the tax credit to be transferred as a portion of | ||||||
11 | the sale. In no event may a
credit be transferred to any | ||||||
12 | taxpayer if the taxpayer or a related party would
not be | ||||||
13 | eligible under the provisions of subsection (i).
| ||||||
14 | (iii) For purposes of this Section, the term "site" | ||||||
15 | shall have the same
meaning as under Section 58.2 of the | ||||||
16 | Environmental Protection Act.
| ||||||
17 | (m) Education expense credit. Beginning with tax years | ||||||
18 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
19 | of one or more qualifying pupils shall be allowed a credit
| ||||||
20 | against the tax imposed by subsections (a) and (b) of this | ||||||
21 | Section for
qualified education expenses incurred on behalf of | ||||||
22 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
23 | qualified education expenses, but in no
event may the total | ||||||
24 | credit under this subsection claimed by a
family that is the
| ||||||
25 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
26 | credit under
this subsection reduce the taxpayer's liability |
| |||||||
| |||||||
1 | under this Act to less than
zero. This subsection is exempt | ||||||
2 | from the provisions of Section 250 of this
Act.
| ||||||
3 | For purposes of this subsection:
| ||||||
4 | "Qualifying pupils" means individuals who (i) are | ||||||
5 | residents of the State of
Illinois, (ii) are under the age of | ||||||
6 | 21 at the close of the school year for
which a credit is | ||||||
7 | sought, and (iii) during the school year for which a credit
is | ||||||
8 | sought were full-time pupils enrolled in a kindergarten through | ||||||
9 | twelfth
grade education program at any school, as defined in | ||||||
10 | this subsection.
| ||||||
11 | "Qualified education expense" means the amount incurred
on | ||||||
12 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
13 | book fees, and
lab fees at the school in which the pupil is | ||||||
14 | enrolled during the regular school
year.
| ||||||
15 | "School" means any public or nonpublic elementary or | ||||||
16 | secondary school in
Illinois that is in compliance with Title | ||||||
17 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
18 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
19 | except that nothing shall be construed to require a child to
| ||||||
20 | attend any particular public or nonpublic school to qualify for | ||||||
21 | the credit
under this Section.
| ||||||
22 | "Custodian" means, with respect to qualifying pupils, an | ||||||
23 | Illinois resident
who is a parent, the parents, a legal | ||||||
24 | guardian, or the legal guardians of the
qualifying pupils.
| ||||||
25 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
26 | credit.
|
| |||||||
| |||||||
1 | (i) For tax years ending on or after December 31, 2006, | ||||||
2 | a taxpayer shall be allowed a credit against the tax | ||||||
3 | imposed by subsections (a) and (b) of this Section for | ||||||
4 | certain amounts paid for unreimbursed eligible remediation | ||||||
5 | costs, as specified in this subsection. For purposes of | ||||||
6 | this Section, "unreimbursed eligible remediation costs" | ||||||
7 | means costs approved by the Illinois Environmental | ||||||
8 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
9 | Environmental Protection Act that were paid in performing | ||||||
10 | environmental remediation at a site within a River Edge | ||||||
11 | Redevelopment Zone for which a No Further Remediation | ||||||
12 | Letter was issued by the Agency and recorded under Section | ||||||
13 | 58.10 of the Environmental Protection Act. The credit must | ||||||
14 | be claimed for the taxable year in which Agency approval of | ||||||
15 | the eligible remediation costs is granted. The credit is | ||||||
16 | not available to any taxpayer if the taxpayer or any | ||||||
17 | related party caused or contributed to, in any material | ||||||
18 | respect, a release of regulated substances on, in, or under | ||||||
19 | the site that was identified and addressed by the remedial | ||||||
20 | action pursuant to the Site Remediation Program of the | ||||||
21 | Environmental Protection Act. Determinations as to credit | ||||||
22 | availability for purposes of this Section shall be made | ||||||
23 | consistent with rules adopted by the Pollution Control | ||||||
24 | Board pursuant to the Illinois Administrative Procedure | ||||||
25 | Act for the administration and enforcement of Section 58.9 | ||||||
26 | of the Environmental Protection Act. For purposes of this |
| |||||||
| |||||||
1 | Section, "taxpayer" includes a person whose tax attributes | ||||||
2 | the taxpayer has succeeded to under Section 381 of the | ||||||
3 | Internal Revenue Code and "related party" includes the | ||||||
4 | persons disallowed a deduction for losses by paragraphs | ||||||
5 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
6 | Code by virtue of being a related taxpayer, as well as any | ||||||
7 | of its partners. The credit allowed against the tax imposed | ||||||
8 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
9 | unreimbursed eligible remediation costs in excess of | ||||||
10 | $100,000 per site. | ||||||
11 | (ii) A credit allowed under this subsection that is | ||||||
12 | unused in the year the credit is earned may be carried | ||||||
13 | forward to each of the 5 taxable years following the year | ||||||
14 | for which the credit is first earned until it is used. This | ||||||
15 | credit shall be applied first to the earliest year for | ||||||
16 | which there is a liability. If there is a credit under this | ||||||
17 | subsection from more than one tax year that is available to | ||||||
18 | offset a liability, the earliest credit arising under this | ||||||
19 | subsection shall be applied first. A credit allowed under | ||||||
20 | this subsection may be sold to a buyer as part of a sale of | ||||||
21 | all or part of the remediation site for which the credit | ||||||
22 | was granted. The purchaser of a remediation site and the | ||||||
23 | tax credit shall succeed to the unused credit and remaining | ||||||
24 | carry-forward period of the seller. To perfect the | ||||||
25 | transfer, the assignor shall record the transfer in the | ||||||
26 | chain of title for the site and provide written notice to |
| |||||||
| |||||||
1 | the Director of the Illinois Department of Revenue of the | ||||||
2 | assignor's intent to sell the remediation site and the | ||||||
3 | amount of the tax credit to be transferred as a portion of | ||||||
4 | the sale. In no event may a credit be transferred to any | ||||||
5 | taxpayer if the taxpayer or a related party would not be | ||||||
6 | eligible under the provisions of subsection (i). | ||||||
7 | (iii) For purposes of this Section, the term "site" | ||||||
8 | shall have the same meaning as under Section 58.2 of the | ||||||
9 | Environmental Protection Act. | ||||||
10 | (iv) This subsection is exempt from the provisions of | ||||||
11 | Section 250.
| ||||||
12 | (Source: P.A. 94-1021, eff. 7-12-06; 95-454, eff. 8-27-07.)
| ||||||
13 | (35 ILCS 5/901) (from Ch. 120, par. 9-901)
| ||||||
14 | Sec. 901. Collection Authority.
| ||||||
15 | (a) In general.
| ||||||
16 | The Department shall collect the taxes imposed by this Act. | ||||||
17 | The Department
shall collect certified past due child support | ||||||
18 | amounts under Section 2505-650
of the Department of Revenue Law | ||||||
19 | (20 ILCS 2505/2505-650). Except as
provided in subsections (c) | ||||||
20 | and (e) of this Section, money collected
pursuant to | ||||||
21 | subsections (a) and (b) of Section 201 of this Act shall be
| ||||||
22 | paid into the General Revenue Fund in the State treasury; money
| ||||||
23 | collected pursuant to subsections (c) and (d) of Section 201 of | ||||||
24 | this Act
shall be paid into the Personal Property Tax | ||||||
25 | Replacement Fund, a special
fund in the State Treasury; and |
| |||||||
| |||||||
1 | money collected under Section 2505-650 of the
Department of | ||||||
2 | Revenue Law (20 ILCS 2505/2505-650) shall be paid
into the
| ||||||
3 | Child Support Enforcement Trust Fund, a special fund outside | ||||||
4 | the State
Treasury, or
to the State
Disbursement Unit | ||||||
5 | established under Section 10-26 of the Illinois Public Aid
| ||||||
6 | Code, as directed by the Department of Healthcare and Family | ||||||
7 | Services.
| ||||||
8 | (b) Local Governmental Distributive Fund.
| ||||||
9 | Beginning August 1, 1969, and continuing through June 30, | ||||||
10 | 1994, the Treasurer
shall transfer each month from the General | ||||||
11 | Revenue Fund to a special fund in
the State treasury, to be | ||||||
12 | known as the "Local Government Distributive Fund", an
amount | ||||||
13 | equal to 1/12 of the net revenue realized from the tax imposed | ||||||
14 | by
subsections (a) and (b) of Section 201 of this Act during | ||||||
15 | the preceding month.
Beginning July 1, 1994, and continuing | ||||||
16 | through June 30, 1995, the Treasurer
shall transfer each month | ||||||
17 | from the General Revenue Fund to the Local Government
| ||||||
18 | Distributive Fund an amount equal to 1/11 of the net revenue | ||||||
19 | realized from the
tax imposed by subsections (a) and (b) of | ||||||
20 | Section 201 of this Act during the
preceding month. Beginning | ||||||
21 | July 1, 1995, the Treasurer shall transfer each
month from the | ||||||
22 | General Revenue Fund to the Local Government Distributive Fund
| ||||||
23 | an amount equal to the net of (i) 1/10 of the net revenue | ||||||
24 | realized from the
tax imposed by
subsections (a) and (b) of | ||||||
25 | Section 201 of the Illinois Income Tax Act during
the preceding | ||||||
26 | month , except that the net revenue attributable to the increase |
| |||||||
| |||||||
1 | in the income tax imposed by subsections (a) and (b) of Section | ||||||
2 | 201 of this Act in accordance with this amendatory Act of the | ||||||
3 | 95th General Assembly shall not be used to calculate the amount | ||||||
4 | transferred to the Local Governmental Distributive Fund
(ii) | ||||||
5 | minus, beginning July 1, 2003 and ending June 30, 2004, | ||||||
6 | $6,666,666, and
beginning July 1,
2004,
zero. Net revenue | ||||||
7 | realized for a month shall be defined as the
revenue from the | ||||||
8 | tax imposed by subsections (a) and (b) of Section 201 of this
| ||||||
9 | Act which is deposited in the General Revenue Fund, the | ||||||
10 | Educational Assistance
Fund and the Income Tax Surcharge Local | ||||||
11 | Government Distributive Fund during the
month minus the amount | ||||||
12 | paid out of the General Revenue Fund in State warrants
during | ||||||
13 | that same month as refunds to taxpayers for overpayment of | ||||||
14 | liability
under the tax imposed by subsections (a) and (b) of | ||||||
15 | Section 201 of this Act.
| ||||||
16 | (c) Deposits Into Income Tax Refund Fund.
| ||||||
17 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
18 | Department shall
deposit a percentage of the amounts | ||||||
19 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
20 | (3), of Section 201 of this Act into a fund in the State
| ||||||
21 | treasury known as the Income Tax Refund Fund. The | ||||||
22 | Department shall deposit 6%
of such amounts during the | ||||||
23 | period beginning January 1, 1989 and ending on June
30, | ||||||
24 | 1989. Beginning with State fiscal year 1990 and for each | ||||||
25 | fiscal year
thereafter, the percentage deposited into the | ||||||
26 | Income Tax Refund Fund during a
fiscal year shall be the |
| |||||||
| |||||||
1 | Annual Percentage. For fiscal years 1999 through
2001, the | ||||||
2 | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | ||||||
3 | Annual Percentage shall be 8%.
For fiscal year 2004, the | ||||||
4 | Annual Percentage shall be 11.7%. Upon the effective date | ||||||
5 | of this amendatory Act of the 93rd General Assembly, the | ||||||
6 | Annual Percentage shall be 10% for fiscal year 2005. For | ||||||
7 | fiscal year 2006, the Annual Percentage shall be 9.75%. For | ||||||
8 | fiscal
year 2007, the Annual Percentage shall be 9.75%. For | ||||||
9 | fiscal year 2008, the Annual Percentage shall be 7.75%. For | ||||||
10 | fiscal year 2009, the Annual Percentage shall be 9.75%. For | ||||||
11 | all other
fiscal years, the
Annual Percentage shall be | ||||||
12 | calculated as a fraction, the numerator of which
shall be | ||||||
13 | the amount of refunds approved for payment by the | ||||||
14 | Department during
the preceding fiscal year as a result of | ||||||
15 | overpayment of tax liability under
subsections (a) and | ||||||
16 | (b)(1), (2), and (3) of Section 201 of this Act plus the
| ||||||
17 | amount of such refunds remaining approved but unpaid at the | ||||||
18 | end of the
preceding fiscal year, minus the amounts | ||||||
19 | transferred into the Income Tax
Refund Fund from the | ||||||
20 | Tobacco Settlement Recovery Fund, and
the denominator of | ||||||
21 | which shall be the amounts which will be collected pursuant
| ||||||
22 | to subsections (a) and (b)(1), (2), and (3) of Section 201 | ||||||
23 | of this Act during
the preceding fiscal year; except that | ||||||
24 | in State fiscal year 2002, the Annual
Percentage shall in | ||||||
25 | no event exceed 7.6%. The Director of Revenue shall
certify | ||||||
26 | the Annual Percentage to the Comptroller on the last |
| |||||||
| |||||||
1 | business day of
the fiscal year immediately preceding the | ||||||
2 | fiscal year for which it is to be
effective.
| ||||||
3 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
4 | Department shall
deposit a percentage of the amounts | ||||||
5 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
6 | (8), (c) and (d) of Section 201
of this Act into a fund in | ||||||
7 | the State treasury known as the Income Tax
Refund Fund. The | ||||||
8 | Department shall deposit 18% of such amounts during the
| ||||||
9 | period beginning January 1, 1989 and ending on June 30, | ||||||
10 | 1989. Beginning
with State fiscal year 1990 and for each | ||||||
11 | fiscal year thereafter, the
percentage deposited into the | ||||||
12 | Income Tax Refund Fund during a fiscal year
shall be the | ||||||
13 | Annual Percentage. For fiscal years 1999, 2000, and 2001, | ||||||
14 | the
Annual Percentage shall be 19%.
For fiscal year 2003, | ||||||
15 | the Annual Percentage shall be 27%. For fiscal year
2004, | ||||||
16 | the Annual Percentage shall be 32%.
Upon the effective date | ||||||
17 | of this amendatory Act of the 93rd General Assembly, the | ||||||
18 | Annual Percentage shall be 24% for fiscal year 2005.
For | ||||||
19 | fiscal year 2006, the Annual Percentage shall be 20%. For | ||||||
20 | fiscal
year 2007, the Annual Percentage shall be 17.5%. For | ||||||
21 | fiscal year 2008, the Annual Percentage shall be 15.5%. For | ||||||
22 | fiscal year 2009, the Annual Percentage shall be 17.5%. For | ||||||
23 | all other fiscal years, the Annual
Percentage shall be | ||||||
24 | calculated
as a fraction, the numerator of which shall be | ||||||
25 | the amount of refunds
approved for payment by the | ||||||
26 | Department during the preceding fiscal year as
a result of |
| |||||||
| |||||||
1 | overpayment of tax liability under subsections (a) and | ||||||
2 | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this | ||||||
3 | Act plus the
amount of such refunds remaining approved but | ||||||
4 | unpaid at the end of the
preceding fiscal year, and the | ||||||
5 | denominator of
which shall be the amounts which will be | ||||||
6 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
7 | (8), (c) and (d) of Section 201 of this Act during the
| ||||||
8 | preceding fiscal year; except that in State fiscal year | ||||||
9 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
10 | The Director of Revenue shall
certify the Annual Percentage | ||||||
11 | to the Comptroller on the last business day of
the fiscal | ||||||
12 | year immediately preceding the fiscal year for which it is | ||||||
13 | to be
effective.
| ||||||
14 | (3) The Comptroller shall order transferred and the | ||||||
15 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
16 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||||||
17 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
18 | (iii) $35,000,000 in January, 2003.
| ||||||
19 | (d) Expenditures from Income Tax Refund Fund.
| ||||||
20 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
21 | Refund Fund
shall be expended exclusively for the purpose | ||||||
22 | of paying refunds resulting
from overpayment of tax | ||||||
23 | liability under Section 201 of this Act, for paying
rebates | ||||||
24 | under Section 208.1 in the event that the amounts in the | ||||||
25 | Homeowners'
Tax Relief Fund are insufficient for that | ||||||
26 | purpose,
and for
making transfers pursuant to this |
| |||||||
| |||||||
1 | subsection (d).
| ||||||
2 | (2) The Director shall order payment of refunds | ||||||
3 | resulting from
overpayment of tax liability under Section | ||||||
4 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
5 | extent that amounts collected pursuant
to Section 201 of | ||||||
6 | this Act and transfers pursuant to this subsection (d)
and | ||||||
7 | item (3) of subsection (c) have been deposited and retained | ||||||
8 | in the
Fund.
| ||||||
9 | (3) As soon as possible after the end of each fiscal | ||||||
10 | year, the Director
shall
order transferred and the State | ||||||
11 | Treasurer and State Comptroller shall
transfer from the | ||||||
12 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
13 | Replacement Fund an amount, certified by the Director to | ||||||
14 | the Comptroller,
equal to the excess of the amount | ||||||
15 | collected pursuant to subsections (c) and
(d) of Section | ||||||
16 | 201 of this Act deposited into the Income Tax Refund Fund
| ||||||
17 | during the fiscal year over the amount of refunds resulting | ||||||
18 | from
overpayment of tax liability under subsections (c) and | ||||||
19 | (d) of Section 201
of this Act paid from the Income Tax | ||||||
20 | Refund Fund during the fiscal year.
| ||||||
21 | (4) As soon as possible after the end of each fiscal | ||||||
22 | year, the Director shall
order transferred and the State | ||||||
23 | Treasurer and State Comptroller shall
transfer from the | ||||||
24 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
25 | Refund Fund an amount, certified by the Director to the | ||||||
26 | Comptroller, equal
to the excess of the amount of refunds |
| |||||||
| |||||||
1 | resulting from overpayment of tax
liability under | ||||||
2 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
3 | from the Income Tax Refund Fund during the fiscal year over | ||||||
4 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
5 | Section 201 of this Act
deposited into the Income Tax | ||||||
6 | Refund Fund during the fiscal year.
| ||||||
7 | (4.5) As soon as possible after the end of fiscal year | ||||||
8 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
9 | order transferred and the State Treasurer and
State | ||||||
10 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
11 | to the General
Revenue Fund any surplus remaining in the | ||||||
12 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
13 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
14 | attributable to transfers under item (3) of subsection (c) | ||||||
15 | less refunds
resulting from the earned income tax credit.
| ||||||
16 | (5) This Act shall constitute an irrevocable and | ||||||
17 | continuing
appropriation from the Income Tax Refund Fund | ||||||
18 | for the purpose of paying
refunds upon the order of the | ||||||
19 | Director in accordance with the provisions of
this Section.
| ||||||
20 | (e) Deposits into the Education Assistance Fund and the | ||||||
21 | Income Tax
Surcharge Local Government Distributive Fund.
| ||||||
22 | On July 1, 1991, and thereafter, of the amounts collected | ||||||
23 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
24 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
25 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
26 | State Treasury. Beginning July 1, 1991,
and continuing through |
| |||||||
| |||||||
1 | January 31, 1993, of the amounts collected pursuant to
| ||||||
2 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
3 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
4 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
5 | Local Government Distributive Fund in the State
Treasury. | ||||||
6 | Beginning February 1, 1993 and continuing through June 30, | ||||||
7 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
8 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
9 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
10 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
11 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
12 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
13 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
14 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
15 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
16 | Local Government Distributive Fund in the State Treasury.
| ||||||
17 | (f) Deposits into the Common School Fund. On January 1 of | ||||||
18 | the first taxable year after the taxable year in which a | ||||||
19 | Management and Concession Agreement is entered into under the | ||||||
20 | Illinois Lottery Law and thereafter, of the amounts collected | ||||||
21 | pursuant to subsections (a) and (b) of Section 201 of this Act, | ||||||
22 | minus deposits into the Income Tax Refund Fund, the Department | ||||||
23 | shall deposit into the Common School Fund in the State treasury | ||||||
24 | 100% of the amount attributable to the increase in the amounts | ||||||
25 | collected pursuant to subsections (a) and (b) of Section 201 of | ||||||
26 | this Act under this amendatory Act of the 95th General |
| |||||||
| |||||||
1 | Assembly. | ||||||
2 | (Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-707, | ||||||
3 | eff. 1-11-08; 95-744, eff. 7-18-08.)
| ||||||
4 | Section 15. If and only if Senate Bill 2595 of the 95th | ||||||
5 | General Assembly, as amended by House Amendment No. 4, becomes | ||||||
6 | law, then the School Code is amended by adding Section 2-3.148 | ||||||
7 | as follows: | ||||||
8 | (105 ILCS 5/2-3.148 new)
| ||||||
9 | Sec. 2-3.148. Distributions from the Lottery Supports | ||||||
10 | Schools Fund. The State Board of Education shall make | ||||||
11 | distributions from the Lottery Supports Schools Fund as | ||||||
12 | provided in Section 20.2 of the Illinois Lottery Law; however, | ||||||
13 | the State Board of Education shall not take into account these | ||||||
14 | distributions when computing State aid under Section 18-8.05 of | ||||||
15 | this Code.
| ||||||
16 | Section 99. Effective date. This Act takes effect upon | ||||||
17 | becoming law.
|