093_SB0079

 
                                     LRB093 03286 SJM 03303 b

 1        AN ACT in relation to taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Illinois  Income  Tax Act is amended by
 5    changing Section 207 as follows:

 6        (35 ILCS 5/207) (from Ch. 120, par. 2-207)
 7        Sec. 207.  Net Losses.
 8        (a) If after applying all of the  modifications  provided
 9    for  in  paragraph  (2)  of  Section 203(b), paragraph (2) of
10    Section 203(c) and paragraph (2) of Section  203(d)  and  the
11    allocation  and apportionment provisions of Article 3 of this
12    Act, the taxpayer's net income results in a loss:;
13             (1)  For any taxable year ending prior  to  December
14        31,  1999,  such  loss shall be allowed as a carryover or
15        carryback deduction in the manner allowed  under  Section
16        172 of the Internal Revenue Code.; and
17             (2)  For   any  taxable  year  ending  on  or  after
18        December 31, 1999 and on or  before  December  30,  2003,
19        such  loss shall be allowed as a carryback to each of the
20        2 taxable years preceding the taxable year of  such  loss
21        and  shall be a net operating carryover to each of the 20
22        taxable years following the taxable year of such loss.
23                  (A)  The taxpayer may elect to  relinquish  the
24             entire  carryback  period with respect to such loss.
25             Such election shall be made in the form  and  manner
26             prescribed  by  the  Department and shall be made by
27             the due date  (including  extensions  of  time)  for
28             filing the taxpayer's return for the taxable year in
29             which such loss is incurred, and such election, once
30             made, shall be irrevocable.
31                  (B)  The  entire  amount  of such loss shall be
 
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 1             carried to the earliest taxable year to  which  such
 2             loss  may be carried.  The amount of such loss which
 3             shall be carried to each of the other taxable  years
 4             shall  be  the excess, if any, of the amount of such
 5             loss over the sum of the deductions for carryback or
 6             carryover of such loss allowable  for  each  of  the
 7             prior  taxable  years  to  which  such  loss  may be
 8             carried.
 9             (2.5)  For any  taxable  year  ending  on  or  after
10        December  31,  2003  and  on or before December 30, 2008,
11        such loss shall not be allowed as a carryback  and  shall
12        be  a  net  operating  carryover to each of the 5 taxable
13        years following the taxable year of such loss. The entire
14        amount of such loss shall  be  carried  to  the  earliest
15        taxable  year  to  which  such  loss  may be carried. The
16        amount of such loss which shall be carried to each of the
17        other taxable years shall be the excess, if any,  of  the
18        amount  of  such  loss over the sum of the deductions for
19        carryover of such loss allowable for each  of  the  prior
20        taxable years to which such loss may be carried.
21             (2.7)  For  any  taxable  year  ending  on  or after
22        December 31, 2008,  such  loss  shall  be  allowed  as  a
23        carryback  to  each  of the 2 taxable years preceding the
24        taxable year of such loss and shall be  a  net  operating
25        carryover  to  each of the 20 taxable years following the
26        taxable year of such loss.
27                  (A)  The taxpayer may elect to  relinquish  the
28             entire  carryback  period with respect to such loss.
29             Such election shall be made in the form  and  manner
30             prescribed  by  the  Department and shall be made by
31             the due date  (including  extensions  of  time)  for
32             filing the taxpayer's return for the taxable year in
33             which such loss is incurred, and such election, once
34             made, shall be irrevocable.
 
                            -3-      LRB093 03286 SJM 03303 b
 1                  (B)  The  entire  amount  of such loss shall be
 2             carried to the earliest taxable year to  which  such
 3             loss  may  be carried. The amount of such loss which
 4             shall be carried to each of the other taxable  years
 5             shall  be  the excess, if any, of the amount of such
 6             loss over the sum of the deductions for carryback or
 7             carryover of such loss allowable  for  each  of  the
 8             prior  taxable  years  to  which  such  loss  may be
 9             carried.
10        (b)  Any loss determined under  subsection  (a)  of  this
11    Section  must  be carried back or carried forward in the same
12    manner for purposes of subsections (a) and (b) of Section 201
13    of this Act as for purposes of subsections  (c)  and  (d)  of
14    Section 201 of this Act.
15    (Source: P.A. 91-541, eff. 8-13-99.)

16        Section  99.  Effective date.  This Act takes effect upon
17    becoming law.