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1 | | AN ACT concerning revenue.
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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. The Illinois Income Tax Act is amended by |
5 | | changing Sections 203, 204, 205, 207, 214, 220, 304, 502, 506, |
6 | | 601, 701, 702, 703, 704A, 709.5, 804, 909, 911, 1002, 1101, |
7 | | 1402, 1405.4, and 1501 as follows:
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8 | | (35 ILCS 5/203) (from Ch. 120, par. 2-203) |
9 | | Sec. 203. Base income defined. |
10 | | (a) Individuals. |
11 | | (1) In general. In the case of an individual, base |
12 | | income means an
amount equal to the taxpayer's adjusted |
13 | | gross income for the taxable
year as modified by paragraph |
14 | | (2). |
15 | | (2) Modifications. The adjusted gross income referred |
16 | | to in
paragraph (1) shall be modified by adding thereto the |
17 | | sum of the
following amounts: |
18 | | (A) An amount equal to all amounts paid or accrued |
19 | | to the taxpayer
as interest or dividends during the |
20 | | taxable year to the extent excluded
from gross income |
21 | | in the computation of adjusted gross income, except |
22 | | stock
dividends of qualified public utilities |
23 | | described in Section 305(e) of the
Internal Revenue |
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1 | | Code; |
2 | | (B) An amount equal to the amount of tax imposed by |
3 | | this Act to the
extent deducted from gross income in |
4 | | the computation of adjusted gross
income for the |
5 | | taxable year; |
6 | | (C) An amount equal to the amount received during |
7 | | the taxable year
as a recovery or refund of real |
8 | | property taxes paid with respect to the
taxpayer's |
9 | | principal residence under the Revenue Act of
1939 and |
10 | | for which a deduction was previously taken under |
11 | | subparagraph (L) of
this paragraph (2) prior to July 1, |
12 | | 1991, the retrospective application date of
Article 4 |
13 | | of Public Act 87-17. In the case of multi-unit or |
14 | | multi-use
structures and farm dwellings, the taxes on |
15 | | the taxpayer's principal residence
shall be that |
16 | | portion of the total taxes for the entire property |
17 | | which is
attributable to such principal residence; |
18 | | (D) An amount equal to the amount of the capital |
19 | | gain deduction
allowable under the Internal Revenue |
20 | | Code, to the extent deducted from gross
income in the |
21 | | computation of adjusted gross income; |
22 | | (D-5) An amount, to the extent not included in |
23 | | adjusted gross income,
equal to the amount of money |
24 | | withdrawn by the taxpayer in the taxable year from
a |
25 | | medical care savings account and the interest earned on |
26 | | the account in the
taxable year of a withdrawal |
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1 | | pursuant to subsection (b) of Section 20 of the
Medical |
2 | | Care Savings Account Act or subsection (b) of Section |
3 | | 20 of the
Medical Care Savings Account Act of 2000; |
4 | | (D-10) For taxable years ending after December 31, |
5 | | 1997, an
amount equal to any eligible remediation costs |
6 | | that the individual
deducted in computing adjusted |
7 | | gross income and for which the
individual claims a |
8 | | credit under subsection (l) of Section 201; |
9 | | (D-15) For taxable years 2001 and thereafter, an |
10 | | amount equal to the
bonus depreciation deduction taken |
11 | | on the taxpayer's federal income tax return for the |
12 | | taxable
year under subsection (k) of Section 168 of the |
13 | | Internal Revenue Code; |
14 | | (D-16) If the taxpayer sells, transfers, abandons, |
15 | | or otherwise disposes of property for which the |
16 | | taxpayer was required in any taxable year to
make an |
17 | | addition modification under subparagraph (D-15), then |
18 | | an amount equal
to the aggregate amount of the |
19 | | deductions taken in all taxable
years under |
20 | | subparagraph (Z) with respect to that property. |
21 | | If the taxpayer continues to own property through |
22 | | the last day of the last tax year for which the |
23 | | taxpayer may claim a depreciation deduction for |
24 | | federal income tax purposes and for which the taxpayer |
25 | | was allowed in any taxable year to make a subtraction |
26 | | modification under subparagraph (Z), then an amount |
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1 | | equal to that subtraction modification.
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2 | | The taxpayer is required to make the addition |
3 | | modification under this
subparagraph
only once with |
4 | | respect to any one piece of property; |
5 | | (D-17) An amount equal to the amount otherwise |
6 | | allowed as a deduction in computing base income for |
7 | | interest paid, accrued, or incurred, directly or |
8 | | indirectly, (i) for taxable years ending on or after |
9 | | December 31, 2004, to a foreign person who would be a |
10 | | member of the same unitary business group but for the |
11 | | fact that foreign person's business activity outside |
12 | | the United States is 80% or more of the foreign |
13 | | person's total business activity and (ii) for taxable |
14 | | years ending on or after December 31, 2008, to a person |
15 | | who would be a member of the same unitary business |
16 | | group but for the fact that the person is prohibited |
17 | | under Section 1501(a)(27) from being included in the |
18 | | unitary business group because he or she is ordinarily |
19 | | required to apportion business income under different |
20 | | subsections of Section 304. The addition modification |
21 | | required by this subparagraph shall be reduced to the |
22 | | extent that dividends were included in base income of |
23 | | the unitary group for the same taxable year and |
24 | | received by the taxpayer or by a member of the |
25 | | taxpayer's unitary business group (including amounts |
26 | | included in gross income under Sections 951 through 964 |
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1 | | of the Internal Revenue Code and amounts included in |
2 | | gross income under Section 78 of the Internal Revenue |
3 | | Code) with respect to the stock of the same person to |
4 | | whom the interest was paid, accrued, or incurred. |
5 | | This paragraph shall not apply to the following:
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6 | | (i) an item of interest paid, accrued, or |
7 | | incurred, directly or indirectly, to a person who |
8 | | is subject in a foreign country or state, other |
9 | | than a state which requires mandatory unitary |
10 | | reporting, to a tax on or measured by net income |
11 | | with respect to such interest; or |
12 | | (ii) an item of interest paid, accrued, or |
13 | | incurred, directly or indirectly, to a person if |
14 | | the taxpayer can establish, based on a |
15 | | preponderance of the evidence, both of the |
16 | | following: |
17 | | (a) the person, during the same taxable |
18 | | year, paid, accrued, or incurred, the interest |
19 | | to a person that is not a related member, and |
20 | | (b) the transaction giving rise to the |
21 | | interest expense between the taxpayer and the |
22 | | person did not have as a principal purpose the |
23 | | avoidance of Illinois income tax, and is paid |
24 | | pursuant to a contract or agreement that |
25 | | reflects an arm's-length interest rate and |
26 | | terms; or
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1 | | (iii) the taxpayer can establish, based on |
2 | | clear and convincing evidence, that the interest |
3 | | paid, accrued, or incurred relates to a contract or |
4 | | agreement entered into at arm's-length rates and |
5 | | terms and the principal purpose for the payment is |
6 | | not federal or Illinois tax avoidance; or
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7 | | (iv) an item of interest paid, accrued, or |
8 | | incurred, directly or indirectly, to a person if |
9 | | the taxpayer establishes by clear and convincing |
10 | | evidence that the adjustments are unreasonable; or |
11 | | if the taxpayer and the Director agree in writing |
12 | | to the application or use of an alternative method |
13 | | of apportionment under Section 304(f).
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14 | | Nothing in this subsection shall preclude the |
15 | | Director from making any other adjustment |
16 | | otherwise allowed under Section 404 of this Act for |
17 | | any tax year beginning after the effective date of |
18 | | this amendment provided such adjustment is made |
19 | | pursuant to regulation adopted by the Department |
20 | | and such regulations provide methods and standards |
21 | | by which the Department will utilize its authority |
22 | | under Section 404 of this Act;
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23 | | (D-18) An amount equal to the amount of intangible |
24 | | expenses and costs otherwise allowed as a deduction in |
25 | | computing base income, and that were paid, accrued, or |
26 | | incurred, directly or indirectly, (i) for taxable |
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1 | | years ending on or after December 31, 2004, to a |
2 | | foreign person who would be a member of the same |
3 | | unitary business group but for the fact that the |
4 | | foreign person's business activity outside the United |
5 | | States is 80% or more of that person's total business |
6 | | activity and (ii) for taxable years ending on or after |
7 | | December 31, 2008, to a person who would be a member of |
8 | | the same unitary business group but for the fact that |
9 | | the person is prohibited under Section 1501(a)(27) |
10 | | from being included in the unitary business group |
11 | | because he or she is ordinarily required to apportion |
12 | | business income under different subsections of Section |
13 | | 304. The addition modification required by this |
14 | | subparagraph shall be reduced to the extent that |
15 | | dividends were included in base income of the unitary |
16 | | group for the same taxable year and received by the |
17 | | taxpayer or by a member of the taxpayer's unitary |
18 | | business group (including amounts included in gross |
19 | | income under Sections 951 through 964 of the Internal |
20 | | Revenue Code and amounts included in gross income under |
21 | | Section 78 of the Internal Revenue Code) with respect |
22 | | to the stock of the same person to whom the intangible |
23 | | expenses and costs were directly or indirectly paid, |
24 | | incurred, or accrued. The preceding sentence does not |
25 | | apply to the extent that the same dividends caused a |
26 | | reduction to the addition modification required under |
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1 | | Section 203(a)(2)(D-17) of this Act. As used in this |
2 | | subparagraph, the term "intangible expenses and costs" |
3 | | includes (1) expenses, losses, and costs for, or |
4 | | related to, the direct or indirect acquisition, use, |
5 | | maintenance or management, ownership, sale, exchange, |
6 | | or any other disposition of intangible property; (2) |
7 | | losses incurred, directly or indirectly, from |
8 | | factoring transactions or discounting transactions; |
9 | | (3) royalty, patent, technical, and copyright fees; |
10 | | (4) licensing fees; and (5) other similar expenses and |
11 | | costs.
For purposes of this subparagraph, "intangible |
12 | | property" includes patents, patent applications, trade |
13 | | names, trademarks, service marks, copyrights, mask |
14 | | works, trade secrets, and similar types of intangible |
15 | | assets. |
16 | | This paragraph shall not apply to the following: |
17 | | (i) any item of intangible expenses or costs |
18 | | paid, accrued, or incurred, directly or |
19 | | indirectly, from a transaction with a person who is |
20 | | subject in a foreign country or state, other than a |
21 | | state which requires mandatory unitary reporting, |
22 | | to a tax on or measured by net income with respect |
23 | | to such item; or |
24 | | (ii) any item of intangible expense or cost |
25 | | paid, accrued, or incurred, directly or |
26 | | indirectly, if the taxpayer can establish, based |
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1 | | on a preponderance of the evidence, both of the |
2 | | following: |
3 | | (a) the person during the same taxable |
4 | | year paid, accrued, or incurred, the |
5 | | intangible expense or cost to a person that is |
6 | | not a related member, and |
7 | | (b) the transaction giving rise to the |
8 | | intangible expense or cost between the |
9 | | taxpayer and the person did not have as a |
10 | | principal purpose the avoidance of Illinois |
11 | | income tax, and is paid pursuant to a contract |
12 | | or agreement that reflects arm's-length terms; |
13 | | or |
14 | | (iii) any item of intangible expense or cost |
15 | | paid, accrued, or incurred, directly or |
16 | | indirectly, from a transaction with a person if the |
17 | | taxpayer establishes by clear and convincing |
18 | | evidence, that the adjustments are unreasonable; |
19 | | or if the taxpayer and the Director agree in |
20 | | writing to the application or use of an alternative |
21 | | method of apportionment under Section 304(f);
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22 | | Nothing in this subsection shall preclude the |
23 | | Director from making any other adjustment |
24 | | otherwise allowed under Section 404 of this Act for |
25 | | any tax year beginning after the effective date of |
26 | | this amendment provided such adjustment is made |
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1 | | pursuant to regulation adopted by the Department |
2 | | and such regulations provide methods and standards |
3 | | by which the Department will utilize its authority |
4 | | under Section 404 of this Act;
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5 | | (D-19) For taxable years ending on or after |
6 | | December 31, 2008, an amount equal to the amount of |
7 | | insurance premium expenses and costs otherwise allowed |
8 | | as a deduction in computing base income, and that were |
9 | | paid, accrued, or incurred, directly or indirectly, to |
10 | | a person who would be a member of the same unitary |
11 | | business group but for the fact that the person is |
12 | | prohibited under Section 1501(a)(27) from being |
13 | | included in the unitary business group because he or |
14 | | she is ordinarily required to apportion business |
15 | | income under different subsections of Section 304. The |
16 | | addition modification required by this subparagraph |
17 | | shall be reduced to the extent that dividends were |
18 | | included in base income of the unitary group for the |
19 | | same taxable year and received by the taxpayer or by a |
20 | | member of the taxpayer's unitary business group |
21 | | (including amounts included in gross income under |
22 | | Sections 951 through 964 of the Internal Revenue Code |
23 | | and amounts included in gross income under Section 78 |
24 | | of the Internal Revenue Code) with respect to the stock |
25 | | of the same person to whom the premiums and costs were |
26 | | directly or indirectly paid, incurred, or accrued. The |
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1 | | preceding sentence does not apply to the extent that |
2 | | the same dividends caused a reduction to the addition |
3 | | modification required under Section 203(a)(2)(D-17) or |
4 | | Section 203(a)(2)(D-18) of this Act.
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5 | | (D-20) For taxable years beginning on or after |
6 | | January 1,
2002 and ending on or before December 31, |
7 | | 2006, in
the
case of a distribution from a qualified |
8 | | tuition program under Section 529 of
the Internal |
9 | | Revenue Code, other than (i) a distribution from a |
10 | | College Savings
Pool created under Section 16.5 of the |
11 | | State Treasurer Act or (ii) a
distribution from the |
12 | | Illinois Prepaid Tuition Trust Fund, an amount equal to
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13 | | the amount excluded from gross income under Section |
14 | | 529(c)(3)(B). For taxable years beginning on or after |
15 | | January 1, 2007, in the case of a distribution from a |
16 | | qualified tuition program under Section 529 of the |
17 | | Internal Revenue Code, other than (i) a distribution |
18 | | from a College Savings Pool created under Section 16.5 |
19 | | of the State Treasurer Act, (ii) a distribution from |
20 | | the Illinois Prepaid Tuition Trust Fund, or (iii) a |
21 | | distribution from a qualified tuition program under |
22 | | Section 529 of the Internal Revenue Code that (I) |
23 | | adopts and determines that its offering materials |
24 | | comply with the College Savings Plans Network's |
25 | | disclosure principles and (II) has made reasonable |
26 | | efforts to inform in-state residents of the existence |
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1 | | of in-state qualified tuition programs by informing |
2 | | Illinois residents directly and, where applicable, to |
3 | | inform financial intermediaries distributing the |
4 | | program to inform in-state residents of the existence |
5 | | of in-state qualified tuition programs at least |
6 | | annually, an amount equal to the amount excluded from |
7 | | gross income under Section 529(c)(3)(B). |
8 | | For the purposes of this subparagraph (D-20), a |
9 | | qualified tuition program has made reasonable efforts |
10 | | if it makes disclosures (which may use the term |
11 | | "in-state program" or "in-state plan" and need not |
12 | | specifically refer to Illinois or its qualified |
13 | | programs by name) (i) directly to prospective |
14 | | participants in its offering materials or makes a |
15 | | public disclosure, such as a website posting; and (ii) |
16 | | where applicable, to intermediaries selling the |
17 | | out-of-state program in the same manner that the |
18 | | out-of-state program distributes its offering |
19 | | materials; |
20 | | (D-21) For taxable years beginning on or after |
21 | | January 1, 2007, in the case of transfer of moneys from |
22 | | a qualified tuition program under Section 529 of the |
23 | | Internal Revenue Code that is administered by the State |
24 | | to an out-of-state program, an amount equal to the |
25 | | amount of moneys previously deducted from base income |
26 | | under subsection (a)(2)(Y) of this Section; |
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1 | | (D-22) For taxable years beginning on or after |
2 | | January 1, 2009, in the case of a nonqualified |
3 | | withdrawal or refund of moneys from a qualified tuition |
4 | | program under Section 529 of the Internal Revenue Code |
5 | | administered by the State that is not used for |
6 | | qualified expenses at an eligible education |
7 | | institution, an amount equal to the contribution |
8 | | component of the nonqualified withdrawal or refund |
9 | | that was previously deducted from base income under |
10 | | subsection (a)(2)(y) of this Section, provided that |
11 | | the withdrawal or refund did not result from the |
12 | | beneficiary's death or disability; |
13 | | (D-23) An amount equal to the credit allowable to |
14 | | the taxpayer under Section 218(a) of this Act, |
15 | | determined without regard to Section 218(c) of this |
16 | | Act; |
17 | | and by deducting from the total so obtained the
sum of the |
18 | | following amounts: |
19 | | (E) For taxable years ending before December 31, |
20 | | 2001,
any amount included in such total in respect of |
21 | | any compensation
(including but not limited to any |
22 | | compensation paid or accrued to a
serviceman while a |
23 | | prisoner of war or missing in action) paid to a |
24 | | resident
by reason of being on active duty in the Armed |
25 | | Forces of the United States
and in respect of any |
26 | | compensation paid or accrued to a resident who as a
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1 | | governmental employee was a prisoner of war or missing |
2 | | in action, and in
respect of any compensation paid to a |
3 | | resident in 1971 or thereafter for
annual training |
4 | | performed pursuant to Sections 502 and 503, Title 32,
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5 | | United States Code as a member of the Illinois National |
6 | | Guard or, beginning with taxable years ending on or |
7 | | after December 31, 2007, the National Guard of any |
8 | | other state.
For taxable years ending on or after |
9 | | December 31, 2001, any amount included in
such total in |
10 | | respect of any compensation (including but not limited |
11 | | to any
compensation paid or accrued to a serviceman |
12 | | while a prisoner of war or missing
in action) paid to a |
13 | | resident by reason of being a member of any component |
14 | | of
the Armed Forces of the United States and in respect |
15 | | of any compensation paid
or accrued to a resident who |
16 | | as a governmental employee was a prisoner of war
or |
17 | | missing in action, and in respect of any compensation |
18 | | paid to a resident in
2001 or thereafter by reason of |
19 | | being a member of the Illinois National Guard or, |
20 | | beginning with taxable years ending on or after |
21 | | December 31, 2007, the National Guard of any other |
22 | | state.
The provisions of this subparagraph (E) |
23 | | amendatory Act of the 92nd General Assembly are exempt
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24 | | from the provisions of Section 250; |
25 | | (F) An amount equal to all amounts included in such |
26 | | total pursuant
to the provisions of Sections 402(a), |
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1 | | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the |
2 | | Internal Revenue Code, or included in such total as
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3 | | distributions under the provisions of any retirement |
4 | | or disability plan for
employees of any governmental |
5 | | agency or unit, or retirement payments to
retired |
6 | | partners, which payments are excluded in computing net |
7 | | earnings
from self employment by Section 1402 of the |
8 | | Internal Revenue Code and
regulations adopted pursuant |
9 | | thereto; |
10 | | (G) The valuation limitation amount; |
11 | | (H) An amount equal to the amount of any tax |
12 | | imposed by this Act
which was refunded to the taxpayer |
13 | | and included in such total for the
taxable year; |
14 | | (I) An amount equal to all amounts included in such |
15 | | total pursuant
to the provisions of Section 111 of the |
16 | | Internal Revenue Code as a
recovery of items previously |
17 | | deducted from adjusted gross income in the
computation |
18 | | of taxable income; |
19 | | (J) An amount equal to those dividends included in |
20 | | such total which were
paid by a corporation which |
21 | | conducts business operations in an Enterprise
Zone or |
22 | | zones created under the Illinois Enterprise Zone Act or |
23 | | a River Edge Redevelopment Zone or zones created under |
24 | | the River Edge Redevelopment Zone Act, and conducts
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25 | | substantially all of its operations in an Enterprise |
26 | | Zone or zones or a River Edge Redevelopment Zone or |
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1 | | zones. This subparagraph (J) is exempt from the |
2 | | provisions of Section 250; |
3 | | (K) An amount equal to those dividends included in |
4 | | such total that
were paid by a corporation that |
5 | | conducts business operations in a federally
designated |
6 | | Foreign Trade Zone or Sub-Zone and that is designated a |
7 | | High Impact
Business located in Illinois; provided |
8 | | that dividends eligible for the
deduction provided in |
9 | | subparagraph (J) of paragraph (2) of this subsection
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10 | | shall not be eligible for the deduction provided under |
11 | | this subparagraph
(K); |
12 | | (L) For taxable years ending after December 31, |
13 | | 1983, an amount equal to
all social security benefits |
14 | | and railroad retirement benefits included in
such |
15 | | total pursuant to Sections 72(r) and 86 of the Internal |
16 | | Revenue Code; |
17 | | (M) With the exception of any amounts subtracted |
18 | | under subparagraph
(N), an amount equal to the sum of |
19 | | all amounts disallowed as
deductions by (i) Sections |
20 | | 171(a) (2), and 265(2) of the Internal Revenue Code
of |
21 | | 1954, as now or hereafter amended , and all amounts of |
22 | | expenses allocable
to interest and disallowed as |
23 | | deductions by Section 265(1) of the Internal
Revenue |
24 | | Code of 1954, as now or hereafter amended ;
and (ii) for |
25 | | taxable years
ending on or after August 13, 1999, |
26 | | Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of |
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1 | | the Internal Revenue Code , plus, for taxable years |
2 | | ending on or after December 31, 2011, Section 45G(e)(3) |
3 | | of the Internal Revenue Code and any amount included in |
4 | | gross income under Section 87 of the Internal Revenue |
5 | | Code ; the provisions of this
subparagraph are exempt |
6 | | from the provisions of Section 250; |
7 | | (N) An amount equal to all amounts included in such |
8 | | total which are
exempt from taxation by this State |
9 | | either by reason of its statutes or
Constitution
or by |
10 | | reason of the Constitution, treaties or statutes of the |
11 | | United States;
provided that, in the case of any |
12 | | statute of this State that exempts income
derived from |
13 | | bonds or other obligations from the tax imposed under |
14 | | this Act,
the amount exempted shall be the interest net |
15 | | of bond premium amortization; |
16 | | (O) An amount equal to any contribution made to a |
17 | | job training
project established pursuant to the Tax |
18 | | Increment Allocation Redevelopment Act; |
19 | | (P) An amount equal to the amount of the deduction |
20 | | used to compute the
federal income tax credit for |
21 | | restoration of substantial amounts held under
claim of |
22 | | right for the taxable year pursuant to Section 1341 of |
23 | | the
Internal Revenue Code or of any itemized deduction |
24 | | taken from adjusted gross income in the computation of |
25 | | taxable income for restoration of substantial amounts |
26 | | held under claim of right for the taxable year of 1986 ; |
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1 | | (Q) An amount equal to any amounts included in such |
2 | | total, received by
the taxpayer as an acceleration in |
3 | | the payment of life, endowment or annuity
benefits in |
4 | | advance of the time they would otherwise be payable as |
5 | | an indemnity
for a terminal illness; |
6 | | (R) An amount equal to the amount of any federal or |
7 | | State bonus paid
to veterans of the Persian Gulf War; |
8 | | (S) An amount, to the extent included in adjusted |
9 | | gross income, equal
to the amount of a contribution |
10 | | made in the taxable year on behalf of the
taxpayer to a |
11 | | medical care savings account established under the |
12 | | Medical Care
Savings Account Act or the Medical Care |
13 | | Savings Account Act of 2000 to the
extent the |
14 | | contribution is accepted by the account
administrator |
15 | | as provided in that Act; |
16 | | (T) An amount, to the extent included in adjusted |
17 | | gross income, equal to
the amount of interest earned in |
18 | | the taxable year on a medical care savings
account |
19 | | established under the Medical Care Savings Account Act |
20 | | or the Medical
Care Savings Account Act of 2000 on |
21 | | behalf of the
taxpayer, other than interest added |
22 | | pursuant to item (D-5) of this paragraph
(2); |
23 | | (U) For one taxable year beginning on or after |
24 | | January 1,
1994, an
amount equal to the total amount of |
25 | | tax imposed and paid under subsections (a)
and (b) of |
26 | | Section 201 of this Act on grant amounts received by |
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| | HB2955 Engrossed | - 19 - | LRB097 08285 HLH 48412 b |
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1 | | the taxpayer
under the Nursing Home Grant Assistance |
2 | | Act during the taxpayer's taxable years
1992 and 1993; |
3 | | (V) Beginning with tax years ending on or after |
4 | | December 31, 1995 and
ending with tax years ending on |
5 | | or before December 31, 2004, an amount equal to
the |
6 | | amount paid by a taxpayer who is a
self-employed |
7 | | taxpayer, a partner of a partnership, or a
shareholder |
8 | | in a Subchapter S corporation for health insurance or |
9 | | long-term
care insurance for that taxpayer or that |
10 | | taxpayer's spouse or dependents, to
the extent that the |
11 | | amount paid for that health insurance or long-term care
|
12 | | insurance may be deducted under Section 213 of the |
13 | | Internal Revenue Code of
1986 , has not been deducted on |
14 | | the federal income tax return of the taxpayer,
and does |
15 | | not exceed the taxable income attributable to that |
16 | | taxpayer's income,
self-employment income, or |
17 | | Subchapter S corporation income; except that no
|
18 | | deduction shall be allowed under this item (V) if the |
19 | | taxpayer is eligible to
participate in any health |
20 | | insurance or long-term care insurance plan of an
|
21 | | employer of the taxpayer or the taxpayer's
spouse. The |
22 | | amount of the health insurance and long-term care |
23 | | insurance
subtracted under this item (V) shall be |
24 | | determined by multiplying total
health insurance and |
25 | | long-term care insurance premiums paid by the taxpayer
|
26 | | times a number that represents the fractional |
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| | HB2955 Engrossed | - 20 - | LRB097 08285 HLH 48412 b |
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|
1 | | percentage of eligible medical
expenses under Section |
2 | | 213 of the Internal Revenue Code of 1986 not actually
|
3 | | deducted on the taxpayer's federal income tax return; |
4 | | (W) For taxable years beginning on or after January |
5 | | 1, 1998,
all amounts included in the taxpayer's federal |
6 | | gross income
in the taxable year from amounts converted |
7 | | from a regular IRA to a Roth IRA.
This paragraph is |
8 | | exempt from the provisions of Section
250; |
9 | | (X) For taxable year 1999 and thereafter, an amount |
10 | | equal to the
amount of any (i) distributions, to the |
11 | | extent includible in gross income for
federal income |
12 | | tax purposes, made to the taxpayer because of his or |
13 | | her status
as a victim of persecution for racial or |
14 | | religious reasons by Nazi Germany or
any other Axis |
15 | | regime or as an heir of the victim and (ii) items
of |
16 | | income, to the extent
includible in gross income for |
17 | | federal income tax purposes, attributable to,
derived |
18 | | from or in any way related to assets stolen from, |
19 | | hidden from, or
otherwise lost to a victim of
|
20 | | persecution for racial or religious reasons by Nazi |
21 | | Germany or any other Axis
regime immediately prior to, |
22 | | during, and immediately after World War II,
including, |
23 | | but
not limited to, interest on the proceeds receivable |
24 | | as insurance
under policies issued to a victim of |
25 | | persecution for racial or religious
reasons
by Nazi |
26 | | Germany or any other Axis regime by European insurance |
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| | HB2955 Engrossed | - 21 - | LRB097 08285 HLH 48412 b |
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1 | | companies
immediately prior to and during World War II;
|
2 | | provided, however, this subtraction from federal |
3 | | adjusted gross income does not
apply to assets acquired |
4 | | with such assets or with the proceeds from the sale of
|
5 | | such assets; provided, further, this paragraph shall |
6 | | only apply to a taxpayer
who was the first recipient of |
7 | | such assets after their recovery and who is a
victim of |
8 | | persecution for racial or religious reasons
by Nazi |
9 | | Germany or any other Axis regime or as an heir of the |
10 | | victim. The
amount of and the eligibility for any |
11 | | public assistance, benefit, or
similar entitlement is |
12 | | not affected by the inclusion of items (i) and (ii) of
|
13 | | this paragraph in gross income for federal income tax |
14 | | purposes.
This paragraph is exempt from the provisions |
15 | | of Section 250; |
16 | | (Y) For taxable years beginning on or after January |
17 | | 1, 2002
and ending
on or before December 31, 2004, |
18 | | moneys contributed in the taxable year to a College |
19 | | Savings Pool account under
Section 16.5 of the State |
20 | | Treasurer Act, except that amounts excluded from
gross |
21 | | income under Section 529(c)(3)(C)(i) of the Internal |
22 | | Revenue Code
shall not be considered moneys |
23 | | contributed under this subparagraph (Y). For taxable |
24 | | years beginning on or after January 1, 2005, a maximum |
25 | | of $10,000
contributed
in the
taxable year to (i) a |
26 | | College Savings Pool account under Section 16.5 of the
|
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| | HB2955 Engrossed | - 22 - | LRB097 08285 HLH 48412 b |
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|
1 | | State
Treasurer Act or (ii) the Illinois Prepaid |
2 | | Tuition Trust Fund,
except that
amounts excluded from |
3 | | gross income under Section 529(c)(3)(C)(i) of the
|
4 | | Internal
Revenue Code shall not be considered moneys |
5 | | contributed under this subparagraph
(Y). For purposes |
6 | | of this subparagraph, contributions made by an |
7 | | employer on behalf of an employee, or matching |
8 | | contributions made by an employee, shall be treated as |
9 | | made by the employee. This
subparagraph (Y) is exempt |
10 | | from the provisions of Section 250; |
11 | | (Z) For taxable years 2001 and thereafter, for the |
12 | | taxable year in
which the bonus depreciation deduction
|
13 | | is taken on the taxpayer's federal income tax return |
14 | | under
subsection (k) of Section 168 of the Internal |
15 | | Revenue Code and for each
applicable taxable year |
16 | | thereafter, an amount equal to "x", where: |
17 | | (1) "y" equals the amount of the depreciation |
18 | | deduction taken for the
taxable year
on the |
19 | | taxpayer's federal income tax return on property |
20 | | for which the bonus
depreciation deduction
was |
21 | | taken in any year under subsection (k) of Section |
22 | | 168 of the Internal
Revenue Code, but not including |
23 | | the bonus depreciation deduction; |
24 | | (2) for taxable years ending on or before |
25 | | December 31, 2005, "x" equals "y" multiplied by 30 |
26 | | and then divided by 70 (or "y"
multiplied by |
|
| | HB2955 Engrossed | - 23 - | LRB097 08285 HLH 48412 b |
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|
1 | | 0.429); and |
2 | | (3) for taxable years ending after December |
3 | | 31, 2005: |
4 | | (i) for property on which a bonus |
5 | | depreciation deduction of 30% of the adjusted |
6 | | basis was taken, "x" equals "y" multiplied by |
7 | | 30 and then divided by 70 (or "y"
multiplied by |
8 | | 0.429); and |
9 | | (ii) for property on which a bonus |
10 | | depreciation deduction of 50% of the adjusted |
11 | | basis was taken, "x" equals "y" multiplied by |
12 | | 1.0. |
13 | | The aggregate amount deducted under this |
14 | | subparagraph in all taxable
years for any one piece of |
15 | | property may not exceed the amount of the bonus
|
16 | | depreciation deduction
taken on that property on the |
17 | | taxpayer's federal income tax return under
subsection |
18 | | (k) of Section 168 of the Internal Revenue Code. This |
19 | | subparagraph (Z) is exempt from the provisions of |
20 | | Section 250; |
21 | | (AA) If the taxpayer sells, transfers, abandons, |
22 | | or otherwise disposes of
property for which the |
23 | | taxpayer was required in any taxable year to make an
|
24 | | addition modification under subparagraph (D-15), then |
25 | | an amount equal to that
addition modification.
|
26 | | If the taxpayer continues to own property through |
|
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|
1 | | the last day of the last tax year for which the |
2 | | taxpayer may claim a depreciation deduction for |
3 | | federal income tax purposes and for which the taxpayer |
4 | | was required in any taxable year to make an addition |
5 | | modification under subparagraph (D-15), then an amount |
6 | | equal to that addition modification.
|
7 | | The taxpayer is allowed to take the deduction under |
8 | | this subparagraph
only once with respect to any one |
9 | | piece of property. |
10 | | This subparagraph (AA) is exempt from the |
11 | | provisions of Section 250; |
12 | | (BB) Any amount included in adjusted gross income, |
13 | | other
than
salary,
received by a driver in a |
14 | | ridesharing arrangement using a motor vehicle; |
15 | | (CC) The amount of (i) any interest income (net of |
16 | | the deductions allocable thereto) taken into account |
17 | | for the taxable year with respect to a transaction with |
18 | | a taxpayer that is required to make an addition |
19 | | modification with respect to such transaction under |
20 | | Section 203(a)(2)(D-17), 203(b)(2)(E-12), |
21 | | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
22 | | the amount of that addition modification, and
(ii) any |
23 | | income from intangible property (net of the deductions |
24 | | allocable thereto) taken into account for the taxable |
25 | | year with respect to a transaction with a taxpayer that |
26 | | is required to make an addition modification with |
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| | HB2955 Engrossed | - 25 - | LRB097 08285 HLH 48412 b |
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|
1 | | respect to such transaction under Section |
2 | | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
3 | | 203(d)(2)(D-8), but not to exceed the amount of that |
4 | | addition modification. This subparagraph (CC) is |
5 | | exempt from the provisions of Section 250; |
6 | | (DD) An amount equal to the interest income taken |
7 | | into account for the taxable year (net of the |
8 | | deductions allocable thereto) with respect to |
9 | | transactions with (i) a foreign person who would be a |
10 | | member of the taxpayer's unitary business group but for |
11 | | the fact that the foreign person's business activity |
12 | | outside the United States is 80% or more of that |
13 | | person's total business activity and (ii) for taxable |
14 | | years ending on or after December 31, 2008, to a person |
15 | | who would be a member of the same unitary business |
16 | | group but for the fact that the person is prohibited |
17 | | under Section 1501(a)(27) from being included in the |
18 | | unitary business group because he or she is ordinarily |
19 | | required to apportion business income under different |
20 | | subsections of Section 304, but not to exceed the |
21 | | addition modification required to be made for the same |
22 | | taxable year under Section 203(a)(2)(D-17) for |
23 | | interest paid, accrued, or incurred, directly or |
24 | | indirectly, to the same person. This subparagraph (DD) |
25 | | is exempt from the provisions of Section 250; |
26 | | (EE) An amount equal to the income from intangible |
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1 | | property taken into account for the taxable year (net |
2 | | of the deductions allocable thereto) with respect to |
3 | | transactions with (i) a foreign person who would be a |
4 | | member of the taxpayer's unitary business group but for |
5 | | the fact that the foreign person's business activity |
6 | | outside the United States is 80% or more of that |
7 | | person's total business activity and (ii) for taxable |
8 | | years ending on or after December 31, 2008, to a person |
9 | | who would be a member of the same unitary business |
10 | | group but for the fact that the person is prohibited |
11 | | under Section 1501(a)(27) from being included in the |
12 | | unitary business group because he or she is ordinarily |
13 | | required to apportion business income under different |
14 | | subsections of Section 304, but not to exceed the |
15 | | addition modification required to be made for the same |
16 | | taxable year under Section 203(a)(2)(D-18) for |
17 | | intangible expenses and costs paid, accrued, or |
18 | | incurred, directly or indirectly, to the same foreign |
19 | | person. This subparagraph (EE) is exempt from the |
20 | | provisions of Section 250; and |
21 | | (FF) An amount equal to any amount awarded to the |
22 | | taxpayer during the taxable year by the Court of Claims |
23 | | under subsection (c) of Section 8 of the Court of |
24 | | Claims Act for time unjustly served in a State prison. |
25 | | This subparagraph (FF) is exempt from the provisions of |
26 | | Section 250 ; and . |
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1 | | (GG) For taxable years ending on or after December |
2 | | 31, 2011, in the case of a taxpayer who was required to |
3 | | add back any insurance premiums under Section |
4 | | 203(a)(2)(D-19), such taxpayer may elect to subtract |
5 | | that part of a reimbursement received from the |
6 | | insurance company equal to the amount of the expense or |
7 | | loss (including expenses incurred by the insurance |
8 | | company) that would have been taken into account as a |
9 | | deduction for federal income tax purposes if the |
10 | | expense or loss had been uninsured. If a taxpayer makes |
11 | | the election provided for by this subparagraph (GG), |
12 | | the insurer to which the premiums were paid must add |
13 | | back to income the amount subtracted by the taxpayer |
14 | | pursuant to this subparagraph (GG). This subparagraph |
15 | | (GG) is exempt from the provisions of Section 250. |
16 | | (b) Corporations. |
17 | | (1) In general. In the case of a corporation, base |
18 | | income means an
amount equal to the taxpayer's taxable |
19 | | income for the taxable year as
modified by paragraph (2). |
20 | | (2) Modifications. The taxable income referred to in |
21 | | paragraph (1)
shall be modified by adding thereto the sum |
22 | | of the following amounts: |
23 | | (A) An amount equal to all amounts paid or accrued |
24 | | to the taxpayer
as interest and all distributions |
25 | | received from regulated investment
companies during |
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1 | | the taxable year to the extent excluded from gross
|
2 | | income in the computation of taxable income; |
3 | | (B) An amount equal to the amount of tax imposed by |
4 | | this Act to the
extent deducted from gross income in |
5 | | the computation of taxable income
for the taxable year; |
6 | | (C) In the case of a regulated investment company, |
7 | | an amount equal to
the excess of (i) the net long-term |
8 | | capital gain for the taxable year, over
(ii) the amount |
9 | | of the capital gain dividends designated as such in |
10 | | accordance
with Section 852(b)(3)(C) of the Internal |
11 | | Revenue Code and any amount
designated under Section |
12 | | 852(b)(3)(D) of the Internal Revenue Code,
|
13 | | attributable to the taxable year (this amendatory Act |
14 | | of 1995
(Public Act 89-89) is declarative of existing |
15 | | law and is not a new
enactment); |
16 | | (D) The amount of any net operating loss deduction |
17 | | taken in arriving
at taxable income, other than a net |
18 | | operating loss carried forward from a
taxable year |
19 | | ending prior to December 31, 1986; |
20 | | (E) For taxable years in which a net operating loss |
21 | | carryback or
carryforward from a taxable year ending |
22 | | prior to December 31, 1986 is an
element of taxable |
23 | | income under paragraph (1) of subsection (e) or
|
24 | | subparagraph (E) of paragraph (2) of subsection (e), |
25 | | the amount by which
addition modifications other than |
26 | | those provided by this subparagraph (E)
exceeded |
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|
1 | | subtraction modifications in such earlier taxable |
2 | | year, with the
following limitations applied in the |
3 | | order that they are listed: |
4 | | (i) the addition modification relating to the |
5 | | net operating loss
carried back or forward to the |
6 | | taxable year from any taxable year ending
prior to |
7 | | December 31, 1986 shall be reduced by the amount of |
8 | | addition
modification under this subparagraph (E) |
9 | | which related to that net operating
loss and which |
10 | | was taken into account in calculating the base |
11 | | income of an
earlier taxable year, and |
12 | | (ii) the addition modification relating to the |
13 | | net operating loss
carried back or forward to the |
14 | | taxable year from any taxable year ending
prior to |
15 | | December 31, 1986 shall not exceed the amount of |
16 | | such carryback or
carryforward; |
17 | | For taxable years in which there is a net operating |
18 | | loss carryback or
carryforward from more than one other |
19 | | taxable year ending prior to December
31, 1986, the |
20 | | addition modification provided in this subparagraph |
21 | | (E) shall
be the sum of the amounts computed |
22 | | independently under the preceding
provisions of this |
23 | | subparagraph (E) for each such taxable year; |
24 | | (E-5) For taxable years ending after December 31, |
25 | | 1997, an
amount equal to any eligible remediation costs |
26 | | that the corporation
deducted in computing adjusted |
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1 | | gross income and for which the
corporation claims a |
2 | | credit under subsection (l) of Section 201; |
3 | | (E-10) For taxable years 2001 and thereafter, an |
4 | | amount equal to the
bonus depreciation deduction taken |
5 | | on the taxpayer's federal income tax return for the |
6 | | taxable
year under subsection (k) of Section 168 of the |
7 | | Internal Revenue Code; |
8 | | (E-11) If the taxpayer sells, transfers, abandons, |
9 | | or otherwise disposes of property for which the |
10 | | taxpayer was required in any taxable year to
make an |
11 | | addition modification under subparagraph (E-10), then |
12 | | an amount equal
to the aggregate amount of the |
13 | | deductions taken in all taxable
years under |
14 | | subparagraph (T) with respect to that property. |
15 | | If the taxpayer continues to own property through |
16 | | the last day of the last tax year for which the |
17 | | taxpayer may claim a depreciation deduction for |
18 | | federal income tax purposes and for which the taxpayer |
19 | | was allowed in any taxable year to make a subtraction |
20 | | modification under subparagraph (T), then an amount |
21 | | equal to that subtraction modification.
|
22 | | The taxpayer is required to make the addition |
23 | | modification under this
subparagraph
only once with |
24 | | respect to any one piece of property; |
25 | | (E-12) An amount equal to the amount otherwise |
26 | | allowed as a deduction in computing base income for |
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|
1 | | interest paid, accrued, or incurred, directly or |
2 | | indirectly, (i) for taxable years ending on or after |
3 | | December 31, 2004, to a foreign person who would be a |
4 | | member of the same unitary business group but for the |
5 | | fact the foreign person's business activity outside |
6 | | the United States is 80% or more of the foreign |
7 | | person's total business activity and (ii) for taxable |
8 | | years ending on or after December 31, 2008, to a person |
9 | | who would be a member of the same unitary business |
10 | | group but for the fact that the person is prohibited |
11 | | under Section 1501(a)(27) from being included in the |
12 | | unitary business group because he or she is ordinarily |
13 | | required to apportion business income under different |
14 | | subsections of Section 304. The addition modification |
15 | | required by this subparagraph shall be reduced to the |
16 | | extent that dividends were included in base income of |
17 | | the unitary group for the same taxable year and |
18 | | received by the taxpayer or by a member of the |
19 | | taxpayer's unitary business group (including amounts |
20 | | included in gross income pursuant to Sections 951 |
21 | | through 964 of the Internal Revenue Code and amounts |
22 | | included in gross income under Section 78 of the |
23 | | Internal Revenue Code) with respect to the stock of the |
24 | | same person to whom the interest was paid, accrued, or |
25 | | incurred.
|
26 | | This paragraph shall not apply to the following:
|
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| | HB2955 Engrossed | - 32 - | LRB097 08285 HLH 48412 b |
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|
1 | | (i) an item of interest paid, accrued, or |
2 | | incurred, directly or indirectly, to a person who |
3 | | is subject in a foreign country or state, other |
4 | | than a state which requires mandatory unitary |
5 | | reporting, to a tax on or measured by net income |
6 | | with respect to such interest; or |
7 | | (ii) an item of interest paid, accrued, or |
8 | | incurred, directly or indirectly, to a person if |
9 | | the taxpayer can establish, based on a |
10 | | preponderance of the evidence, both of the |
11 | | following: |
12 | | (a) the person, during the same taxable |
13 | | year, paid, accrued, or incurred, the interest |
14 | | to a person that is not a related member, and |
15 | | (b) the transaction giving rise to the |
16 | | interest expense between the taxpayer and the |
17 | | person did not have as a principal purpose the |
18 | | avoidance of Illinois income tax, and is paid |
19 | | pursuant to a contract or agreement that |
20 | | reflects an arm's-length interest rate and |
21 | | terms; or
|
22 | | (iii) the taxpayer can establish, based on |
23 | | clear and convincing evidence, that the interest |
24 | | paid, accrued, or incurred relates to a contract or |
25 | | agreement entered into at arm's-length rates and |
26 | | terms and the principal purpose for the payment is |
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1 | | not federal or Illinois tax avoidance; or
|
2 | | (iv) an item of interest paid, accrued, or |
3 | | incurred, directly or indirectly, to a person if |
4 | | the taxpayer establishes by clear and convincing |
5 | | evidence that the adjustments are unreasonable; or |
6 | | if the taxpayer and the Director agree in writing |
7 | | to the application or use of an alternative method |
8 | | of apportionment under Section 304(f).
|
9 | | Nothing in this subsection shall preclude the |
10 | | Director from making any other adjustment |
11 | | otherwise allowed under Section 404 of this Act for |
12 | | any tax year beginning after the effective date of |
13 | | this amendment provided such adjustment is made |
14 | | pursuant to regulation adopted by the Department |
15 | | and such regulations provide methods and standards |
16 | | by which the Department will utilize its authority |
17 | | under Section 404 of this Act;
|
18 | | (E-13) An amount equal to the amount of intangible |
19 | | expenses and costs otherwise allowed as a deduction in |
20 | | computing base income, and that were paid, accrued, or |
21 | | incurred, directly or indirectly, (i) for taxable |
22 | | years ending on or after December 31, 2004, to a |
23 | | foreign person who would be a member of the same |
24 | | unitary business group but for the fact that the |
25 | | foreign person's business activity outside the United |
26 | | States is 80% or more of that person's total business |
|
| | HB2955 Engrossed | - 34 - | LRB097 08285 HLH 48412 b |
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|
1 | | activity and (ii) for taxable years ending on or after |
2 | | December 31, 2008, to a person who would be a member of |
3 | | the same unitary business group but for the fact that |
4 | | the person is prohibited under Section 1501(a)(27) |
5 | | from being included in the unitary business group |
6 | | because he or she is ordinarily required to apportion |
7 | | business income under different subsections of Section |
8 | | 304. The addition modification required by this |
9 | | subparagraph shall be reduced to the extent that |
10 | | dividends were included in base income of the unitary |
11 | | group for the same taxable year and received by the |
12 | | taxpayer or by a member of the taxpayer's unitary |
13 | | business group (including amounts included in gross |
14 | | income pursuant to Sections 951 through 964 of the |
15 | | Internal Revenue Code and amounts included in gross |
16 | | income under Section 78 of the Internal Revenue Code) |
17 | | with respect to the stock of the same person to whom |
18 | | the intangible expenses and costs were directly or |
19 | | indirectly paid, incurred, or accrued. The preceding |
20 | | sentence shall not apply to the extent that the same |
21 | | dividends caused a reduction to the addition |
22 | | modification required under Section 203(b)(2)(E-12) of |
23 | | this Act.
As used in this subparagraph, the term |
24 | | "intangible expenses and costs" includes (1) expenses, |
25 | | losses, and costs for, or related to, the direct or |
26 | | indirect acquisition, use, maintenance or management, |
|
| | HB2955 Engrossed | - 35 - | LRB097 08285 HLH 48412 b |
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|
1 | | ownership, sale, exchange, or any other disposition of |
2 | | intangible property; (2) losses incurred, directly or |
3 | | indirectly, from factoring transactions or discounting |
4 | | transactions; (3) royalty, patent, technical, and |
5 | | copyright fees; (4) licensing fees; and (5) other |
6 | | similar expenses and costs.
For purposes of this |
7 | | subparagraph, "intangible property" includes patents, |
8 | | patent applications, trade names, trademarks, service |
9 | | marks, copyrights, mask works, trade secrets, and |
10 | | similar types of intangible assets. |
11 | | This paragraph shall not apply to the following: |
12 | | (i) any item of intangible expenses or costs |
13 | | paid, accrued, or incurred, directly or |
14 | | indirectly, from a transaction with a person who is |
15 | | subject in a foreign country or state, other than a |
16 | | state which requires mandatory unitary reporting, |
17 | | to a tax on or measured by net income with respect |
18 | | to such item; or |
19 | | (ii) any item of intangible expense or cost |
20 | | paid, accrued, or incurred, directly or |
21 | | indirectly, if the taxpayer can establish, based |
22 | | on a preponderance of the evidence, both of the |
23 | | following: |
24 | | (a) the person during the same taxable |
25 | | year paid, accrued, or incurred, the |
26 | | intangible expense or cost to a person that is |
|
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1 | | not a related member, and |
2 | | (b) the transaction giving rise to the |
3 | | intangible expense or cost between the |
4 | | taxpayer and the person did not have as a |
5 | | principal purpose the avoidance of Illinois |
6 | | income tax, and is paid pursuant to a contract |
7 | | or agreement that reflects arm's-length terms; |
8 | | or |
9 | | (iii) any item of intangible expense or cost |
10 | | paid, accrued, or incurred, directly or |
11 | | indirectly, from a transaction with a person if the |
12 | | taxpayer establishes by clear and convincing |
13 | | evidence, that the adjustments are unreasonable; |
14 | | or if the taxpayer and the Director agree in |
15 | | writing to the application or use of an alternative |
16 | | method of apportionment under Section 304(f);
|
17 | | Nothing in this subsection shall preclude the |
18 | | Director from making any other adjustment |
19 | | otherwise allowed under Section 404 of this Act for |
20 | | any tax year beginning after the effective date of |
21 | | this amendment provided such adjustment is made |
22 | | pursuant to regulation adopted by the Department |
23 | | and such regulations provide methods and standards |
24 | | by which the Department will utilize its authority |
25 | | under Section 404 of this Act;
|
26 | | (E-14) For taxable years ending on or after |
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1 | | December 31, 2008, an amount equal to the amount of |
2 | | insurance premium expenses and costs otherwise allowed |
3 | | as a deduction in computing base income, and that were |
4 | | paid, accrued, or incurred, directly or indirectly, to |
5 | | a person who would be a member of the same unitary |
6 | | business group but for the fact that the person is |
7 | | prohibited under Section 1501(a)(27) from being |
8 | | included in the unitary business group because he or |
9 | | she is ordinarily required to apportion business |
10 | | income under different subsections of Section 304. The |
11 | | addition modification required by this subparagraph |
12 | | shall be reduced to the extent that dividends were |
13 | | included in base income of the unitary group for the |
14 | | same taxable year and received by the taxpayer or by a |
15 | | member of the taxpayer's unitary business group |
16 | | (including amounts included in gross income under |
17 | | Sections 951 through 964 of the Internal Revenue Code |
18 | | and amounts included in gross income under Section 78 |
19 | | of the Internal Revenue Code) with respect to the stock |
20 | | of the same person to whom the premiums and costs were |
21 | | directly or indirectly paid, incurred, or accrued. The |
22 | | preceding sentence does not apply to the extent that |
23 | | the same dividends caused a reduction to the addition |
24 | | modification required under Section 203(b)(2)(E-12) or |
25 | | Section 203(b)(2)(E-13) of this Act;
|
26 | | (E-15) For taxable years beginning after December |
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1 | | 31, 2008, any deduction for dividends paid by a captive |
2 | | real estate investment trust that is allowed to a real |
3 | | estate investment trust under Section 857(b)(2)(B) of |
4 | | the Internal Revenue Code for dividends paid; |
5 | | (E-16) An amount equal to the credit allowable to |
6 | | the taxpayer under Section 218(a) of this Act, |
7 | | determined without regard to Section 218(c) of this |
8 | | Act; |
9 | | and by deducting from the total so obtained the sum of the |
10 | | following
amounts: |
11 | | (F) An amount equal to the amount of any tax |
12 | | imposed by this Act
which was refunded to the taxpayer |
13 | | and included in such total for the
taxable year; |
14 | | (G) An amount equal to any amount included in such |
15 | | total under
Section 78 of the Internal Revenue Code; |
16 | | (H) In the case of a regulated investment company, |
17 | | an amount equal
to the amount of exempt interest |
18 | | dividends as defined in subsection (b)
(5) of Section |
19 | | 852 of the Internal Revenue Code, paid to shareholders
|
20 | | for the taxable year; |
21 | | (I) With the exception of any amounts subtracted |
22 | | under subparagraph
(J),
an amount equal to the sum of |
23 | | all amounts disallowed as
deductions by (i) Sections |
24 | | 171(a) (2), and 265(a)(2) and amounts disallowed as
|
25 | | interest expense by Section 291(a)(3) of the Internal |
26 | | Revenue Code , as now
or hereafter amended , and all |
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1 | | amounts of expenses allocable to interest and
|
2 | | disallowed as deductions by Section 265(a)(1) of the |
3 | | Internal Revenue Code ,
as now or hereafter amended ;
and |
4 | | (ii) for taxable years
ending on or after August 13, |
5 | | 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and |
6 | | 832(b)(5)(B)(i) of the Internal Revenue Code , plus, |
7 | | for tax years ending on or after December 31, 2011, |
8 | | amounts disallowed as deductions by Section 45G(e)(3) |
9 | | of the Internal Revenue Code and any amount included in |
10 | | gross income under Section 87 of the Internal Revenue |
11 | | Code and the policyholders' share of tax-exempt |
12 | | interest of a life insurance company under Section |
13 | | 807(a)(2)(B) of the Internal Revenue Code (in the case |
14 | | of a life insurance company with gross income from a |
15 | | decrease in reserves for the tax year) or Section |
16 | | 807(b)(1)(B) of the Internal Revenue Code (in the case |
17 | | of a life insurance company allowed a deduction for an |
18 | | increase in reserves for the tax year) ; the
provisions |
19 | | of this
subparagraph are exempt from the provisions of |
20 | | Section 250; |
21 | | (J) An amount equal to all amounts included in such |
22 | | total which are
exempt from taxation by this State |
23 | | either by reason of its statutes or
Constitution
or by |
24 | | reason of the Constitution, treaties or statutes of the |
25 | | United States;
provided that, in the case of any |
26 | | statute of this State that exempts income
derived from |
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1 | | bonds or other obligations from the tax imposed under |
2 | | this Act,
the amount exempted shall be the interest net |
3 | | of bond premium amortization; |
4 | | (K) An amount equal to those dividends included in |
5 | | such total
which were paid by a corporation which |
6 | | conducts
business operations in an Enterprise Zone or |
7 | | zones created under
the Illinois Enterprise Zone Act or |
8 | | a River Edge Redevelopment Zone or zones created under |
9 | | the River Edge Redevelopment Zone Act and conducts |
10 | | substantially all of its
operations in an Enterprise |
11 | | Zone or zones or a River Edge Redevelopment Zone or |
12 | | zones. This subparagraph (K) is exempt from the |
13 | | provisions of Section 250; |
14 | | (L) An amount equal to those dividends included in |
15 | | such total that
were paid by a corporation that |
16 | | conducts business operations in a federally
designated |
17 | | Foreign Trade Zone or Sub-Zone and that is designated a |
18 | | High Impact
Business located in Illinois; provided |
19 | | that dividends eligible for the
deduction provided in |
20 | | subparagraph (K) of paragraph 2 of this subsection
|
21 | | shall not be eligible for the deduction provided under |
22 | | this subparagraph
(L); |
23 | | (M) For any taxpayer that is a financial |
24 | | organization within the meaning
of Section 304(c) of |
25 | | this Act, an amount included in such total as interest
|
26 | | income from a loan or loans made by such taxpayer to a |
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1 | | borrower, to the extent
that such a loan is secured by |
2 | | property which is eligible for the Enterprise
Zone |
3 | | Investment Credit or the River Edge Redevelopment Zone |
4 | | Investment Credit. To determine the portion of a loan |
5 | | or loans that is
secured by property eligible for a |
6 | | Section 201(f) investment
credit to the borrower, the |
7 | | entire principal amount of the loan or loans
between |
8 | | the taxpayer and the borrower should be divided into |
9 | | the basis of the
Section 201(f) investment credit |
10 | | property which secures the
loan or loans, using for |
11 | | this purpose the original basis of such property on
the |
12 | | date that it was placed in service in the
Enterprise |
13 | | Zone or the River Edge Redevelopment Zone. The |
14 | | subtraction modification available to taxpayer in any
|
15 | | year under this subsection shall be that portion of the |
16 | | total interest paid
by the borrower with respect to |
17 | | such loan attributable to the eligible
property as |
18 | | calculated under the previous sentence. This |
19 | | subparagraph (M) is exempt from the provisions of |
20 | | Section 250; |
21 | | (M-1) For any taxpayer that is a financial |
22 | | organization within the
meaning of Section 304(c) of |
23 | | this Act, an amount included in such total as
interest |
24 | | income from a loan or loans made by such taxpayer to a |
25 | | borrower,
to the extent that such a loan is secured by |
26 | | property which is eligible for
the High Impact Business |
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1 | | Investment Credit. To determine the portion of a
loan |
2 | | or loans that is secured by property eligible for a |
3 | | Section 201(h) investment credit to the borrower, the |
4 | | entire principal amount of
the loan or loans between |
5 | | the taxpayer and the borrower should be divided into
|
6 | | the basis of the Section 201(h) investment credit |
7 | | property which
secures the loan or loans, using for |
8 | | this purpose the original basis of such
property on the |
9 | | date that it was placed in service in a federally |
10 | | designated
Foreign Trade Zone or Sub-Zone located in |
11 | | Illinois. No taxpayer that is
eligible for the |
12 | | deduction provided in subparagraph (M) of paragraph |
13 | | (2) of
this subsection shall be eligible for the |
14 | | deduction provided under this
subparagraph (M-1). The |
15 | | subtraction modification available to taxpayers in
any |
16 | | year under this subsection shall be that portion of the |
17 | | total interest
paid by the borrower with respect to |
18 | | such loan attributable to the eligible
property as |
19 | | calculated under the previous sentence; |
20 | | (N) Two times any contribution made during the |
21 | | taxable year to a
designated zone organization to the |
22 | | extent that the contribution (i)
qualifies as a |
23 | | charitable contribution under subsection (c) of |
24 | | Section 170
of the Internal Revenue Code and (ii) must, |
25 | | by its terms, be used for a
project approved by the |
26 | | Department of Commerce and Economic Opportunity under |
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1 | | Section 11 of the Illinois Enterprise Zone Act or under |
2 | | Section 10-10 of the River Edge Redevelopment Zone Act. |
3 | | This subparagraph (N) is exempt from the provisions of |
4 | | Section 250; |
5 | | (O) An amount equal to: (i) 85% for taxable years |
6 | | ending on or before
December 31, 1992, or, a percentage |
7 | | equal to the percentage allowable under
Section |
8 | | 243(a)(1) of the Internal Revenue Code of 1986 for |
9 | | taxable years ending
after December 31, 1992, of the |
10 | | amount by which dividends included in taxable
income |
11 | | and received from a corporation that is not created or |
12 | | organized under
the laws of the United States or any |
13 | | state or political subdivision thereof,
including, for |
14 | | taxable years ending on or after December 31, 1988, |
15 | | dividends
received or deemed received or paid or deemed |
16 | | paid under Sections 951 through
965 964 of the Internal |
17 | | Revenue Code, exceed the amount of the modification
|
18 | | provided under subparagraph (G) of paragraph (2) of |
19 | | this subsection (b) which
is related to such dividends, |
20 | | and including, for taxable years ending on or after |
21 | | December 31, 2008, dividends received from a captive |
22 | | real estate investment trust; plus (ii) 100% of the |
23 | | amount by which dividends,
included in taxable income |
24 | | and received, including, for taxable years ending on
or |
25 | | after December 31, 1988, dividends received or deemed |
26 | | received or paid or
deemed paid under Sections 951 |
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1 | | through 964 of the Internal Revenue Code and including, |
2 | | for taxable years ending on or after December 31, 2008, |
3 | | dividends received from a captive real estate |
4 | | investment trust, from
any such corporation specified |
5 | | in clause (i) that would but for the provisions
of |
6 | | Section 1504 (b) (3) of the Internal Revenue Code be |
7 | | treated as a member of
the affiliated group which |
8 | | includes the dividend recipient, exceed the amount
of |
9 | | the modification provided under subparagraph (G) of |
10 | | paragraph (2) of this
subsection (b) which is related |
11 | | to such dividends. This subparagraph (O) is exempt from |
12 | | the provisions of Section 250 of this Act; |
13 | | (P) An amount equal to any contribution made to a |
14 | | job training project
established pursuant to the Tax |
15 | | Increment Allocation Redevelopment Act; |
16 | | (Q) An amount equal to the amount of the deduction |
17 | | used to compute the
federal income tax credit for |
18 | | restoration of substantial amounts held under
claim of |
19 | | right for the taxable year pursuant to Section 1341 of |
20 | | the
Internal Revenue Code of 1986 ; |
21 | | (R) On and after July 20, 1999, in the case of an |
22 | | attorney-in-fact with respect to whom an
interinsurer |
23 | | or a reciprocal insurer has made the election under |
24 | | Section 835 of
the Internal Revenue Code, 26 U.S.C. |
25 | | 835, an amount equal to the excess, if
any, of the |
26 | | amounts paid or incurred by that interinsurer or |
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1 | | reciprocal insurer
in the taxable year to the |
2 | | attorney-in-fact over the deduction allowed to that
|
3 | | interinsurer or reciprocal insurer with respect to the |
4 | | attorney-in-fact under
Section 835(b) of the Internal |
5 | | Revenue Code for the taxable year; the provisions of |
6 | | this subparagraph are exempt from the provisions of |
7 | | Section 250; |
8 | | (S) For taxable years ending on or after December |
9 | | 31, 1997, in the
case of a Subchapter
S corporation, an |
10 | | amount equal to all amounts of income allocable to a
|
11 | | shareholder subject to the Personal Property Tax |
12 | | Replacement Income Tax imposed
by subsections (c) and |
13 | | (d) of Section 201 of this Act, including amounts
|
14 | | allocable to organizations exempt from federal income |
15 | | tax by reason of Section
501(a) of the Internal Revenue |
16 | | Code. This subparagraph (S) is exempt from
the |
17 | | provisions of Section 250; |
18 | | (T) For taxable years 2001 and thereafter, for the |
19 | | taxable year in
which the bonus depreciation deduction
|
20 | | is taken on the taxpayer's federal income tax return |
21 | | under
subsection (k) of Section 168 of the Internal |
22 | | Revenue Code and for each
applicable taxable year |
23 | | thereafter, an amount equal to "x", where: |
24 | | (1) "y" equals the amount of the depreciation |
25 | | deduction taken for the
taxable year
on the |
26 | | taxpayer's federal income tax return on property |
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1 | | for which the bonus
depreciation deduction
was |
2 | | taken in any year under subsection (k) of Section |
3 | | 168 of the Internal
Revenue Code, but not including |
4 | | the bonus depreciation deduction; |
5 | | (2) for taxable years ending on or before |
6 | | December 31, 2005, "x" equals "y" multiplied by 30 |
7 | | and then divided by 70 (or "y"
multiplied by |
8 | | 0.429); and |
9 | | (3) for taxable years ending after December |
10 | | 31, 2005: |
11 | | (i) for property on which a bonus |
12 | | depreciation deduction of 30% of the adjusted |
13 | | basis was taken, "x" equals "y" multiplied by |
14 | | 30 and then divided by 70 (or "y"
multiplied by |
15 | | 0.429); and |
16 | | (ii) for property on which a bonus |
17 | | depreciation deduction of 50% of the adjusted |
18 | | basis was taken, "x" equals "y" multiplied by |
19 | | 1.0. |
20 | | The aggregate amount deducted under this |
21 | | subparagraph in all taxable
years for any one piece of |
22 | | property may not exceed the amount of the bonus
|
23 | | depreciation deduction
taken on that property on the |
24 | | taxpayer's federal income tax return under
subsection |
25 | | (k) of Section 168 of the Internal Revenue Code. This |
26 | | subparagraph (T) is exempt from the provisions of |
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1 | | Section 250; |
2 | | (U) If the taxpayer sells, transfers, abandons, or |
3 | | otherwise disposes of
property for which the taxpayer |
4 | | was required in any taxable year to make an
addition |
5 | | modification under subparagraph (E-10), then an amount |
6 | | equal to that
addition modification. |
7 | | If the taxpayer continues to own property through |
8 | | the last day of the last tax year for which the |
9 | | taxpayer may claim a depreciation deduction for |
10 | | federal income tax purposes and for which the taxpayer |
11 | | was required in any taxable year to make an addition |
12 | | modification under subparagraph (E-10), then an amount |
13 | | equal to that addition modification.
|
14 | | The taxpayer is allowed to take the deduction under |
15 | | this subparagraph
only once with respect to any one |
16 | | piece of property. |
17 | | This subparagraph (U) is exempt from the |
18 | | provisions of Section 250; |
19 | | (V) The amount of: (i) any interest income (net of |
20 | | the deductions allocable thereto) taken into account |
21 | | for the taxable year with respect to a transaction with |
22 | | a taxpayer that is required to make an addition |
23 | | modification with respect to such transaction under |
24 | | Section 203(a)(2)(D-17), 203(b)(2)(E-12), |
25 | | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
26 | | the amount of such addition modification,
(ii) any |
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1 | | income from intangible property (net of the deductions |
2 | | allocable thereto) taken into account for the taxable |
3 | | year with respect to a transaction with a taxpayer that |
4 | | is required to make an addition modification with |
5 | | respect to such transaction under Section |
6 | | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
7 | | 203(d)(2)(D-8), but not to exceed the amount of such |
8 | | addition modification, and (iii) any insurance premium |
9 | | income (net of deductions allocable thereto) taken |
10 | | into account for the taxable year with respect to a |
11 | | transaction with a taxpayer that is required to make an |
12 | | addition modification with respect to such transaction |
13 | | under Section 203(a)(2)(D-19), Section |
14 | | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section |
15 | | 203(d)(2)(D-9), but not to exceed the amount of that |
16 | | addition modification. This subparagraph (V) is exempt |
17 | | from the provisions of Section 250;
|
18 | | (W) An amount equal to the interest income taken |
19 | | into account for the taxable year (net of the |
20 | | deductions allocable thereto) with respect to |
21 | | transactions with (i) a foreign person who would be a |
22 | | member of the taxpayer's unitary business group but for |
23 | | the fact that the foreign person's business activity |
24 | | outside the United States is 80% or more of that |
25 | | person's total business activity and (ii) for taxable |
26 | | years ending on or after December 31, 2008, to a person |
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1 | | who would be a member of the same unitary business |
2 | | group but for the fact that the person is prohibited |
3 | | under Section 1501(a)(27) from being included in the |
4 | | unitary business group because he or she is ordinarily |
5 | | required to apportion business income under different |
6 | | subsections of Section 304, but not to exceed the |
7 | | addition modification required to be made for the same |
8 | | taxable year under Section 203(b)(2)(E-12) for |
9 | | interest paid, accrued, or incurred, directly or |
10 | | indirectly, to the same person. This subparagraph (W) |
11 | | is exempt from the provisions of Section 250; and
|
12 | | (X) An amount equal to the income from intangible |
13 | | property taken into account for the taxable year (net |
14 | | of the deductions allocable thereto) with respect to |
15 | | transactions with (i) a foreign person who would be a |
16 | | member of the taxpayer's unitary business group but for |
17 | | the fact that the foreign person's business activity |
18 | | outside the United States is 80% or more of that |
19 | | person's total business activity and (ii) for taxable |
20 | | years ending on or after December 31, 2008, to a person |
21 | | who would be a member of the same unitary business |
22 | | group but for the fact that the person is prohibited |
23 | | under Section 1501(a)(27) from being included in the |
24 | | unitary business group because he or she is ordinarily |
25 | | required to apportion business income under different |
26 | | subsections of Section 304, but not to exceed the |
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1 | | addition modification required to be made for the same |
2 | | taxable year under Section 203(b)(2)(E-13) for |
3 | | intangible expenses and costs paid, accrued, or |
4 | | incurred, directly or indirectly, to the same foreign |
5 | | person. This subparagraph (X) is exempt from the |
6 | | provisions of Section 250 ; .
|
7 | | (Y) For taxable years ending on or after December |
8 | | 31, 2011, in the case of a taxpayer who was required to |
9 | | add back any insurance premiums under Section |
10 | | 203(b)(2)(E-14), such taxpayer may elect to subtract |
11 | | that part of a reimbursement received from the |
12 | | insurance company equal to the amount of the expense or |
13 | | loss (including expenses incurred by the insurance |
14 | | company) that would have been taken into account as a |
15 | | deduction for federal income tax purposes if the |
16 | | expense or loss had been uninsured. If a taxpayer makes |
17 | | the election provided for by this subparagraph (Y), the |
18 | | insurer to which the premiums were paid must add back |
19 | | to income the amount subtracted by the taxpayer |
20 | | pursuant to this subparagraph (Y). This subparagraph |
21 | | (Y) is exempt from the provisions of Section 250; and |
22 | | (Z) The difference between the nondeductible |
23 | | controlled foreign corporation dividends under Section |
24 | | 965(e)(3) of the Internal Revenue Code over the taxable |
25 | | income of the taxpayer, computed without regard to |
26 | | Section 965(e)(2)(A) of the Internal Revenue Code, and |
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1 | | without regard to any net operating loss deduction. |
2 | | This subparagraph (Z) is exempt from the provisions of |
3 | | Section 250. |
4 | | (3) Special rule. For purposes of paragraph (2) (A), |
5 | | "gross income"
in the case of a life insurance company, for |
6 | | tax years ending on and after
December 31, 1994,
and prior |
7 | | to December 31, 2011, shall mean the gross investment |
8 | | income for the taxable year and, for tax years ending on or |
9 | | after December 31, 2011, shall mean all amounts included in |
10 | | life insurance gross income under Section 803(a)(3) of the |
11 | | Internal Revenue Code . |
12 | | (c) Trusts and estates. |
13 | | (1) In general. In the case of a trust or estate, base |
14 | | income means
an amount equal to the taxpayer's taxable |
15 | | income for the taxable year as
modified by paragraph (2). |
16 | | (2) Modifications. Subject to the provisions of |
17 | | paragraph (3), the
taxable income referred to in paragraph |
18 | | (1) shall be modified by adding
thereto the sum of the |
19 | | following amounts: |
20 | | (A) An amount equal to all amounts paid or accrued |
21 | | to the taxpayer
as interest or dividends during the |
22 | | taxable year to the extent excluded
from gross income |
23 | | in the computation of taxable income; |
24 | | (B) In the case of (i) an estate, $600; (ii) a |
25 | | trust which, under
its governing instrument, is |
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1 | | required to distribute all of its income
currently, |
2 | | $300; and (iii) any other trust, $100, but in each such |
3 | | case,
only to the extent such amount was deducted in |
4 | | the computation of
taxable income; |
5 | | (C) An amount equal to the amount of tax imposed by |
6 | | this Act to the
extent deducted from gross income in |
7 | | the computation of taxable income
for the taxable year; |
8 | | (D) The amount of any net operating loss deduction |
9 | | taken in arriving at
taxable income, other than a net |
10 | | operating loss carried forward from a
taxable year |
11 | | ending prior to December 31, 1986; |
12 | | (E) For taxable years in which a net operating loss |
13 | | carryback or
carryforward from a taxable year ending |
14 | | prior to December 31, 1986 is an
element of taxable |
15 | | income under paragraph (1) of subsection (e) or |
16 | | subparagraph
(E) of paragraph (2) of subsection (e), |
17 | | the amount by which addition
modifications other than |
18 | | those provided by this subparagraph (E) exceeded
|
19 | | subtraction modifications in such taxable year, with |
20 | | the following limitations
applied in the order that |
21 | | they are listed: |
22 | | (i) the addition modification relating to the |
23 | | net operating loss
carried back or forward to the |
24 | | taxable year from any taxable year ending
prior to |
25 | | December 31, 1986 shall be reduced by the amount of |
26 | | addition
modification under this subparagraph (E) |
|
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1 | | which related to that net
operating loss and which |
2 | | was taken into account in calculating the base
|
3 | | income of an earlier taxable year, and |
4 | | (ii) the addition modification relating to the |
5 | | net operating loss
carried back or forward to the |
6 | | taxable year from any taxable year ending
prior to |
7 | | December 31, 1986 shall not exceed the amount of |
8 | | such carryback or
carryforward; |
9 | | For taxable years in which there is a net operating |
10 | | loss carryback or
carryforward from more than one other |
11 | | taxable year ending prior to December
31, 1986, the |
12 | | addition modification provided in this subparagraph |
13 | | (E) shall
be the sum of the amounts computed |
14 | | independently under the preceding
provisions of this |
15 | | subparagraph (E) for each such taxable year; |
16 | | (F) For taxable years ending on or after January 1, |
17 | | 1989, an amount
equal to the tax deducted pursuant to |
18 | | Section 164 of the Internal Revenue
Code if the trust |
19 | | or estate is claiming the same tax for purposes of the
|
20 | | Illinois foreign tax credit under Section 601 of this |
21 | | Act; |
22 | | (G) An amount equal to the amount of the capital |
23 | | gain deduction
allowable under the Internal Revenue |
24 | | Code, to the extent deducted from
gross income in the |
25 | | computation of taxable income; |
26 | | (G-5) For taxable years ending after December 31, |
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1 | | 1997, an
amount equal to any eligible remediation costs |
2 | | that the trust or estate
deducted in computing adjusted |
3 | | gross income and for which the trust
or estate claims a |
4 | | credit under subsection (l) of Section 201; |
5 | | (G-10) For taxable years 2001 and thereafter, an |
6 | | amount equal to the
bonus depreciation deduction taken |
7 | | on the taxpayer's federal income tax return for the |
8 | | taxable
year under subsection (k) of Section 168 of the |
9 | | Internal Revenue Code; and |
10 | | (G-11) If the taxpayer sells, transfers, abandons, |
11 | | or otherwise disposes of property for which the |
12 | | taxpayer was required in any taxable year to
make an |
13 | | addition modification under subparagraph (G-10), then |
14 | | an amount equal
to the aggregate amount of the |
15 | | deductions taken in all taxable
years under |
16 | | subparagraph (R) with respect to that property. |
17 | | If the taxpayer continues to own property through |
18 | | the last day of the last tax year for which the |
19 | | taxpayer may claim a depreciation deduction for |
20 | | federal income tax purposes and for which the taxpayer |
21 | | was allowed in any taxable year to make a subtraction |
22 | | modification under subparagraph (R), then an amount |
23 | | equal to that subtraction modification.
|
24 | | The taxpayer is required to make the addition |
25 | | modification under this
subparagraph
only once with |
26 | | respect to any one piece of property; |
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1 | | (G-12) An amount equal to the amount otherwise |
2 | | allowed as a deduction in computing base income for |
3 | | interest paid, accrued, or incurred, directly or |
4 | | indirectly, (i) for taxable years ending on or after |
5 | | December 31, 2004, to a foreign person who would be a |
6 | | member of the same unitary business group but for the |
7 | | fact that the foreign person's business activity |
8 | | outside the United States is 80% or more of the foreign |
9 | | person's total business activity and (ii) for taxable |
10 | | years ending on or after December 31, 2008, to a person |
11 | | who would be a member of the same unitary business |
12 | | group but for the fact that the person is prohibited |
13 | | under Section 1501(a)(27) from being included in the |
14 | | unitary business group because he or she is ordinarily |
15 | | required to apportion business income under different |
16 | | subsections of Section 304. The addition modification |
17 | | required by this subparagraph shall be reduced to the |
18 | | extent that dividends were included in base income of |
19 | | the unitary group for the same taxable year and |
20 | | received by the taxpayer or by a member of the |
21 | | taxpayer's unitary business group (including amounts |
22 | | included in gross income pursuant to Sections 951 |
23 | | through 964 of the Internal Revenue Code and amounts |
24 | | included in gross income under Section 78 of the |
25 | | Internal Revenue Code) with respect to the stock of the |
26 | | same person to whom the interest was paid, accrued, or |
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1 | | incurred.
|
2 | | This paragraph shall not apply to the following:
|
3 | | (i) an item of interest paid, accrued, or |
4 | | incurred, directly or indirectly, to a person who |
5 | | is subject in a foreign country or state, other |
6 | | than a state which requires mandatory unitary |
7 | | reporting, to a tax on or measured by net income |
8 | | with respect to such interest; or |
9 | | (ii) an item of interest paid, accrued, or |
10 | | incurred, directly or indirectly, to a person if |
11 | | the taxpayer can establish, based on a |
12 | | preponderance of the evidence, both of the |
13 | | following: |
14 | | (a) the person, during the same taxable |
15 | | year, paid, accrued, or incurred, the interest |
16 | | to a person that is not a related member, and |
17 | | (b) the transaction giving rise to the |
18 | | interest expense between the taxpayer and the |
19 | | person did not have as a principal purpose the |
20 | | avoidance of Illinois income tax, and is paid |
21 | | pursuant to a contract or agreement that |
22 | | reflects an arm's-length interest rate and |
23 | | terms; or
|
24 | | (iii) the taxpayer can establish, based on |
25 | | clear and convincing evidence, that the interest |
26 | | paid, accrued, or incurred relates to a contract or |
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1 | | agreement entered into at arm's-length rates and |
2 | | terms and the principal purpose for the payment is |
3 | | not federal or Illinois tax avoidance; or
|
4 | | (iv) an item of interest paid, accrued, or |
5 | | incurred, directly or indirectly, to a person if |
6 | | the taxpayer establishes by clear and convincing |
7 | | evidence that the adjustments are unreasonable; or |
8 | | if the taxpayer and the Director agree in writing |
9 | | to the application or use of an alternative method |
10 | | of apportionment under Section 304(f).
|
11 | | Nothing in this subsection shall preclude the |
12 | | Director from making any other adjustment |
13 | | otherwise allowed under Section 404 of this Act for |
14 | | any tax year beginning after the effective date of |
15 | | this amendment provided such adjustment is made |
16 | | pursuant to regulation adopted by the Department |
17 | | and such regulations provide methods and standards |
18 | | by which the Department will utilize its authority |
19 | | under Section 404 of this Act;
|
20 | | (G-13) An amount equal to the amount of intangible |
21 | | expenses and costs otherwise allowed as a deduction in |
22 | | computing base income, and that were paid, accrued, or |
23 | | incurred, directly or indirectly, (i) for taxable |
24 | | years ending on or after December 31, 2004, to a |
25 | | foreign person who would be a member of the same |
26 | | unitary business group but for the fact that the |
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1 | | foreign person's business activity outside the United |
2 | | States is 80% or more of that person's total business |
3 | | activity and (ii) for taxable years ending on or after |
4 | | December 31, 2008, to a person who would be a member of |
5 | | the same unitary business group but for the fact that |
6 | | the person is prohibited under Section 1501(a)(27) |
7 | | from being included in the unitary business group |
8 | | because he or she is ordinarily required to apportion |
9 | | business income under different subsections of Section |
10 | | 304. The addition modification required by this |
11 | | subparagraph shall be reduced to the extent that |
12 | | dividends were included in base income of the unitary |
13 | | group for the same taxable year and received by the |
14 | | taxpayer or by a member of the taxpayer's unitary |
15 | | business group (including amounts included in gross |
16 | | income pursuant to Sections 951 through 964 of the |
17 | | Internal Revenue Code and amounts included in gross |
18 | | income under Section 78 of the Internal Revenue Code) |
19 | | with respect to the stock of the same person to whom |
20 | | the intangible expenses and costs were directly or |
21 | | indirectly paid, incurred, or accrued. The preceding |
22 | | sentence shall not apply to the extent that the same |
23 | | dividends caused a reduction to the addition |
24 | | modification required under Section 203(c)(2)(G-12) of |
25 | | this Act. As used in this subparagraph, the term |
26 | | "intangible expenses and costs" includes: (1) |
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1 | | expenses, losses, and costs for or related to the |
2 | | direct or indirect acquisition, use, maintenance or |
3 | | management, ownership, sale, exchange, or any other |
4 | | disposition of intangible property; (2) losses |
5 | | incurred, directly or indirectly, from factoring |
6 | | transactions or discounting transactions; (3) royalty, |
7 | | patent, technical, and copyright fees; (4) licensing |
8 | | fees; and (5) other similar expenses and costs. For |
9 | | purposes of this subparagraph, "intangible property" |
10 | | includes patents, patent applications, trade names, |
11 | | trademarks, service marks, copyrights, mask works, |
12 | | trade secrets, and similar types of intangible assets. |
13 | | This paragraph shall not apply to the following: |
14 | | (i) any item of intangible expenses or costs |
15 | | paid, accrued, or incurred, directly or |
16 | | indirectly, from a transaction with a person who is |
17 | | subject in a foreign country or state, other than a |
18 | | state which requires mandatory unitary reporting, |
19 | | to a tax on or measured by net income with respect |
20 | | to such item; or |
21 | | (ii) any item of intangible expense or cost |
22 | | paid, accrued, or incurred, directly or |
23 | | indirectly, if the taxpayer can establish, based |
24 | | on a preponderance of the evidence, both of the |
25 | | following: |
26 | | (a) the person during the same taxable |
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1 | | year paid, accrued, or incurred, the |
2 | | intangible expense or cost to a person that is |
3 | | not a related member, and |
4 | | (b) the transaction giving rise to the |
5 | | intangible expense or cost between the |
6 | | taxpayer and the person did not have as a |
7 | | principal purpose the avoidance of Illinois |
8 | | income tax, and is paid pursuant to a contract |
9 | | or agreement that reflects arm's-length terms; |
10 | | or |
11 | | (iii) any item of intangible expense or cost |
12 | | paid, accrued, or incurred, directly or |
13 | | indirectly, from a transaction with a person if the |
14 | | taxpayer establishes by clear and convincing |
15 | | evidence, that the adjustments are unreasonable; |
16 | | or if the taxpayer and the Director agree in |
17 | | writing to the application or use of an alternative |
18 | | method of apportionment under Section 304(f);
|
19 | | Nothing in this subsection shall preclude the |
20 | | Director from making any other adjustment |
21 | | otherwise allowed under Section 404 of this Act for |
22 | | any tax year beginning after the effective date of |
23 | | this amendment provided such adjustment is made |
24 | | pursuant to regulation adopted by the Department |
25 | | and such regulations provide methods and standards |
26 | | by which the Department will utilize its authority |
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1 | | under Section 404 of this Act;
|
2 | | (G-14) For taxable years ending on or after |
3 | | December 31, 2008, an amount equal to the amount of |
4 | | insurance premium expenses and costs otherwise allowed |
5 | | as a deduction in computing base income, and that were |
6 | | paid, accrued, or incurred, directly or indirectly, to |
7 | | a person who would be a member of the same unitary |
8 | | business group but for the fact that the person is |
9 | | prohibited under Section 1501(a)(27) from being |
10 | | included in the unitary business group because he or |
11 | | she is ordinarily required to apportion business |
12 | | income under different subsections of Section 304. The |
13 | | addition modification required by this subparagraph |
14 | | shall be reduced to the extent that dividends were |
15 | | included in base income of the unitary group for the |
16 | | same taxable year and received by the taxpayer or by a |
17 | | member of the taxpayer's unitary business group |
18 | | (including amounts included in gross income under |
19 | | Sections 951 through 964 of the Internal Revenue Code |
20 | | and amounts included in gross income under Section 78 |
21 | | of the Internal Revenue Code) with respect to the stock |
22 | | of the same person to whom the premiums and costs were |
23 | | directly or indirectly paid, incurred, or accrued. The |
24 | | preceding sentence does not apply to the extent that |
25 | | the same dividends caused a reduction to the addition |
26 | | modification required under Section 203(c)(2)(G-12) or |
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1 | | Section 203(c)(2)(G-13) of this Act; |
2 | | (G-15) An amount equal to the credit allowable to |
3 | | the taxpayer under Section 218(a) of this Act, |
4 | | determined without regard to Section 218(c) of this |
5 | | Act; |
6 | | and by deducting from the total so obtained the sum of the |
7 | | following
amounts: |
8 | | (H) An amount equal to all amounts included in such |
9 | | total pursuant
to the provisions of Sections 402(a), |
10 | | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the |
11 | | Internal Revenue Code or included in such total as
|
12 | | distributions under the provisions of any retirement |
13 | | or disability plan for
employees of any governmental |
14 | | agency or unit, or retirement payments to
retired |
15 | | partners, which payments are excluded in computing net |
16 | | earnings
from self employment by Section 1402 of the |
17 | | Internal Revenue Code and
regulations adopted pursuant |
18 | | thereto; |
19 | | (I) The valuation limitation amount; |
20 | | (J) An amount equal to the amount of any tax |
21 | | imposed by this Act
which was refunded to the taxpayer |
22 | | and included in such total for the
taxable year; |
23 | | (K) An amount equal to all amounts included in |
24 | | taxable income as
modified by subparagraphs (A), (B), |
25 | | (C), (D), (E), (F) and (G) which
are exempt from |
26 | | taxation by this State either by reason of its statutes |
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1 | | or
Constitution
or by reason of the Constitution, |
2 | | treaties or statutes of the United States;
provided |
3 | | that, in the case of any statute of this State that |
4 | | exempts income
derived from bonds or other obligations |
5 | | from the tax imposed under this Act,
the amount |
6 | | exempted shall be the interest net of bond premium |
7 | | amortization; |
8 | | (L) With the exception of any amounts subtracted |
9 | | under subparagraph
(K),
an amount equal to the sum of |
10 | | all amounts disallowed as
deductions by (i) Sections |
11 | | 171(a) (2) and 265(a)(2) of the Internal Revenue
Code , |
12 | | as now or hereafter amended , and all amounts of |
13 | | expenses allocable
to interest and disallowed as |
14 | | deductions by Section 265(1) of the Internal
Revenue |
15 | | Code of 1954, as now or hereafter amended ;
and (ii) for |
16 | | taxable years
ending on or after August 13, 1999, |
17 | | Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of |
18 | | the Internal Revenue Code , plus, (iii) for taxable |
19 | | years ending on or after December 31, 2011, Section |
20 | | 45G(e)(3) of the Internal Revenue Code and any amount |
21 | | included in gross income under Section 87 of the |
22 | | Internal Revenue Code ; the provisions of this
|
23 | | subparagraph are exempt from the provisions of Section |
24 | | 250; |
25 | | (M) An amount equal to those dividends included in |
26 | | such total
which were paid by a corporation which |
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1 | | conducts business operations in an
Enterprise Zone or |
2 | | zones created under the Illinois Enterprise Zone Act or |
3 | | a River Edge Redevelopment Zone or zones created under |
4 | | the River Edge Redevelopment Zone Act and
conducts |
5 | | substantially all of its operations in an Enterprise |
6 | | Zone or Zones or a River Edge Redevelopment Zone or |
7 | | zones. This subparagraph (M) is exempt from the |
8 | | provisions of Section 250; |
9 | | (N) An amount equal to any contribution made to a |
10 | | job training
project established pursuant to the Tax |
11 | | Increment Allocation
Redevelopment Act; |
12 | | (O) An amount equal to those dividends included in |
13 | | such total
that were paid by a corporation that |
14 | | conducts business operations in a
federally designated |
15 | | Foreign Trade Zone or Sub-Zone and that is designated
a |
16 | | High Impact Business located in Illinois; provided |
17 | | that dividends eligible
for the deduction provided in |
18 | | subparagraph (M) of paragraph (2) of this
subsection |
19 | | shall not be eligible for the deduction provided under |
20 | | this
subparagraph (O); |
21 | | (P) An amount equal to the amount of the deduction |
22 | | used to compute the
federal income tax credit for |
23 | | restoration of substantial amounts held under
claim of |
24 | | right for the taxable year pursuant to Section 1341 of |
25 | | the
Internal Revenue Code of 1986 ; |
26 | | (Q) For taxable year 1999 and thereafter, an amount |
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1 | | equal to the
amount of any
(i) distributions, to the |
2 | | extent includible in gross income for
federal income |
3 | | tax purposes, made to the taxpayer because of
his or |
4 | | her status as a victim of
persecution for racial or |
5 | | religious reasons by Nazi Germany or any other Axis
|
6 | | regime or as an heir of the victim and (ii) items
of |
7 | | income, to the extent
includible in gross income for |
8 | | federal income tax purposes, attributable to,
derived |
9 | | from or in any way related to assets stolen from, |
10 | | hidden from, or
otherwise lost to a victim of
|
11 | | persecution for racial or religious reasons by Nazi
|
12 | | Germany or any other Axis regime
immediately prior to, |
13 | | during, and immediately after World War II, including,
|
14 | | but
not limited to, interest on the proceeds receivable |
15 | | as insurance
under policies issued to a victim of |
16 | | persecution for racial or religious
reasons by Nazi |
17 | | Germany or any other Axis regime by European insurance
|
18 | | companies
immediately prior to and during World War II;
|
19 | | provided, however, this subtraction from federal |
20 | | adjusted gross income does not
apply to assets acquired |
21 | | with such assets or with the proceeds from the sale of
|
22 | | such assets; provided, further, this paragraph shall |
23 | | only apply to a taxpayer
who was the first recipient of |
24 | | such assets after their recovery and who is a
victim of
|
25 | | persecution for racial or religious reasons
by Nazi |
26 | | Germany or any other Axis regime or as an heir of the |
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1 | | victim. The
amount of and the eligibility for any |
2 | | public assistance, benefit, or
similar entitlement is |
3 | | not affected by the inclusion of items (i) and (ii) of
|
4 | | this paragraph in gross income for federal income tax |
5 | | purposes.
This paragraph is exempt from the provisions |
6 | | of Section 250; |
7 | | (R) For taxable years 2001 and thereafter, for the |
8 | | taxable year in
which the bonus depreciation deduction
|
9 | | is taken on the taxpayer's federal income tax return |
10 | | under
subsection (k) of Section 168 of the Internal |
11 | | Revenue Code and for each
applicable taxable year |
12 | | thereafter, an amount equal to "x", where: |
13 | | (1) "y" equals the amount of the depreciation |
14 | | deduction taken for the
taxable year
on the |
15 | | taxpayer's federal income tax return on property |
16 | | for which the bonus
depreciation deduction
was |
17 | | taken in any year under subsection (k) of Section |
18 | | 168 of the Internal
Revenue Code, but not including |
19 | | the bonus depreciation deduction; |
20 | | (2) for taxable years ending on or before |
21 | | December 31, 2005, "x" equals "y" multiplied by 30 |
22 | | and then divided by 70 (or "y"
multiplied by |
23 | | 0.429); and |
24 | | (3) for taxable years ending after December |
25 | | 31, 2005: |
26 | | (i) for property on which a bonus |
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1 | | depreciation deduction of 30% of the adjusted |
2 | | basis was taken, "x" equals "y" multiplied by |
3 | | 30 and then divided by 70 (or "y"
multiplied by |
4 | | 0.429); and |
5 | | (ii) for property on which a bonus |
6 | | depreciation deduction of 50% of the adjusted |
7 | | basis was taken, "x" equals "y" multiplied by |
8 | | 1.0. |
9 | | The aggregate amount deducted under this |
10 | | subparagraph in all taxable
years for any one piece of |
11 | | property may not exceed the amount of the bonus
|
12 | | depreciation deduction
taken on that property on the |
13 | | taxpayer's federal income tax return under
subsection |
14 | | (k) of Section 168 of the Internal Revenue Code. This |
15 | | subparagraph (R) is exempt from the provisions of |
16 | | Section 250; |
17 | | (S) If the taxpayer sells, transfers, abandons, or |
18 | | otherwise disposes of
property for which the taxpayer |
19 | | was required in any taxable year to make an
addition |
20 | | modification under subparagraph (G-10), then an amount |
21 | | equal to that
addition modification. |
22 | | If the taxpayer continues to own property through |
23 | | the last day of the last tax year for which the |
24 | | taxpayer may claim a depreciation deduction for |
25 | | federal income tax purposes and for which the taxpayer |
26 | | was required in any taxable year to make an addition |
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| | HB2955 Engrossed | - 68 - | LRB097 08285 HLH 48412 b |
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1 | | modification under subparagraph (G-10), then an amount |
2 | | equal to that addition modification.
|
3 | | The taxpayer is allowed to take the deduction under |
4 | | this subparagraph
only once with respect to any one |
5 | | piece of property. |
6 | | This subparagraph (S) is exempt from the |
7 | | provisions of Section 250; |
8 | | (T) The amount of (i) any interest income (net of |
9 | | the deductions allocable thereto) taken into account |
10 | | for the taxable year with respect to a transaction with |
11 | | a taxpayer that is required to make an addition |
12 | | modification with respect to such transaction under |
13 | | Section 203(a)(2)(D-17), 203(b)(2)(E-12), |
14 | | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
15 | | the amount of such addition modification and
(ii) any |
16 | | income from intangible property (net of the deductions |
17 | | allocable thereto) taken into account for the taxable |
18 | | year with respect to a transaction with a taxpayer that |
19 | | is required to make an addition modification with |
20 | | respect to such transaction under Section |
21 | | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
22 | | 203(d)(2)(D-8), but not to exceed the amount of such |
23 | | addition modification. This subparagraph (T) is exempt |
24 | | from the provisions of Section 250;
|
25 | | (U) An amount equal to the interest income taken |
26 | | into account for the taxable year (net of the |
|
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|
1 | | deductions allocable thereto) with respect to |
2 | | transactions with (i) a foreign person who would be a |
3 | | member of the taxpayer's unitary business group but for |
4 | | the fact the foreign person's business activity |
5 | | outside the United States is 80% or more of that |
6 | | person's total business activity and (ii) for taxable |
7 | | years ending on or after December 31, 2008, to a person |
8 | | who would be a member of the same unitary business |
9 | | group but for the fact that the person is prohibited |
10 | | under Section 1501(a)(27) from being included in the |
11 | | unitary business group because he or she is ordinarily |
12 | | required to apportion business income under different |
13 | | subsections of Section 304, but not to exceed the |
14 | | addition modification required to be made for the same |
15 | | taxable year under Section 203(c)(2)(G-12) for |
16 | | interest paid, accrued, or incurred, directly or |
17 | | indirectly, to the same person. This subparagraph (U) |
18 | | is exempt from the provisions of Section 250; and |
19 | | (V) An amount equal to the income from intangible |
20 | | property taken into account for the taxable year (net |
21 | | of the deductions allocable thereto) with respect to |
22 | | transactions with (i) a foreign person who would be a |
23 | | member of the taxpayer's unitary business group but for |
24 | | the fact that the foreign person's business activity |
25 | | outside the United States is 80% or more of that |
26 | | person's total business activity and (ii) for taxable |
|
| | HB2955 Engrossed | - 70 - | LRB097 08285 HLH 48412 b |
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1 | | years ending on or after December 31, 2008, to a person |
2 | | who would be a member of the same unitary business |
3 | | group but for the fact that the person is prohibited |
4 | | under Section 1501(a)(27) from being included in the |
5 | | unitary business group because he or she is ordinarily |
6 | | required to apportion business income under different |
7 | | subsections of Section 304, but not to exceed the |
8 | | addition modification required to be made for the same |
9 | | taxable year under Section 203(c)(2)(G-13) for |
10 | | intangible expenses and costs paid, accrued, or |
11 | | incurred, directly or indirectly, to the same foreign |
12 | | person. This subparagraph (V) is exempt from the |
13 | | provisions of Section 250 ; .
|
14 | | (W) in the case of an estate, an amount equal to |
15 | | all amounts included in such total pursuant to the |
16 | | provisions of Section 111 of the Internal Revenue Code |
17 | | as a recovery of items previously deducted by the |
18 | | decedent from adjusted gross income in the computation |
19 | | of taxable income. This subparagraph (W) is exempt from |
20 | | Section 250; |
21 | | (X) an amount equal to the refund included in such |
22 | | total of any tax deducted for federal income tax |
23 | | purposes, to the extent that deduction was added back |
24 | | under subparagraph (F). This subparagraph (X) is |
25 | | exempt from the provisions of Section 250; and |
26 | | (Y) For taxable years ending on or after December |
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1 | | 31, 2011, in the case of a taxpayer who was required to |
2 | | add back any insurance premiums under Section |
3 | | 203(c)(2)(G-14), such taxpayer may elect to subtract |
4 | | that part of a reimbursement received from the |
5 | | insurance company equal to the amount of the expense or |
6 | | loss (including expenses incurred by the insurance |
7 | | company) that would have been taken into account as a |
8 | | deduction for federal income tax purposes if the |
9 | | expense or loss had been uninsured. If a taxpayer makes |
10 | | the election provided for by this subparagraph (Y), the |
11 | | insurer to which the premiums were paid must add back |
12 | | to income the amount subtracted by the taxpayer |
13 | | pursuant to this subparagraph (Y). This subparagraph |
14 | | (Y) is exempt from the provisions of Section 250. |
15 | | (3) Limitation. The amount of any modification |
16 | | otherwise required
under this subsection shall, under |
17 | | regulations prescribed by the
Department, be adjusted by |
18 | | any amounts included therein which were
properly paid, |
19 | | credited, or required to be distributed, or permanently set
|
20 | | aside for charitable purposes pursuant to Internal Revenue |
21 | | Code Section
642(c) during the taxable year. |
22 | | (d) Partnerships. |
23 | | (1) In general. In the case of a partnership, base |
24 | | income means an
amount equal to the taxpayer's taxable |
25 | | income for the taxable year as
modified by paragraph (2). |
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1 | | (2) Modifications. The taxable income referred to in |
2 | | paragraph (1)
shall be modified by adding thereto the sum |
3 | | of the following amounts: |
4 | | (A) An amount equal to all amounts paid or accrued |
5 | | to the taxpayer as
interest or dividends during the |
6 | | taxable year to the extent excluded from
gross income |
7 | | in the computation of taxable income; |
8 | | (B) An amount equal to the amount of tax imposed by |
9 | | this Act to the
extent deducted from gross income for |
10 | | the taxable year; |
11 | | (C) The amount of deductions allowed to the |
12 | | partnership pursuant to
Section 707 (c) of the Internal |
13 | | Revenue Code in calculating its taxable income; |
14 | | (D) An amount equal to the amount of the capital |
15 | | gain deduction
allowable under the Internal Revenue |
16 | | Code, to the extent deducted from
gross income in the |
17 | | computation of taxable income; |
18 | | (D-5) For taxable years 2001 and thereafter, an |
19 | | amount equal to the
bonus depreciation deduction taken |
20 | | on the taxpayer's federal income tax return for the |
21 | | taxable
year under subsection (k) of Section 168 of the |
22 | | Internal Revenue Code; |
23 | | (D-6) If the taxpayer sells, transfers, abandons, |
24 | | or otherwise disposes of
property for which the |
25 | | taxpayer was required in any taxable year to make an
|
26 | | addition modification under subparagraph (D-5), then |
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1 | | an amount equal to the
aggregate amount of the |
2 | | deductions taken in all taxable years
under |
3 | | subparagraph (O) with respect to that property. |
4 | | If the taxpayer continues to own property through |
5 | | the last day of the last tax year for which the |
6 | | taxpayer may claim a depreciation deduction for |
7 | | federal income tax purposes and for which the taxpayer |
8 | | was allowed in any taxable year to make a subtraction |
9 | | modification under subparagraph (O), then an amount |
10 | | equal to that subtraction modification.
|
11 | | The taxpayer is required to make the addition |
12 | | modification under this
subparagraph
only once with |
13 | | respect to any one piece of property; |
14 | | (D-7) An amount equal to the amount otherwise |
15 | | allowed as a deduction in computing base income for |
16 | | interest paid, accrued, or incurred, directly or |
17 | | indirectly, (i) for taxable years ending on or after |
18 | | December 31, 2004, to a foreign person who would be a |
19 | | member of the same unitary business group but for the |
20 | | fact the foreign person's business activity outside |
21 | | the United States is 80% or more of the foreign |
22 | | person's total business activity and (ii) for taxable |
23 | | years ending on or after December 31, 2008, to a person |
24 | | who would be a member of the same unitary business |
25 | | group but for the fact that the person is prohibited |
26 | | under Section 1501(a)(27) from being included in the |
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1 | | unitary business group because he or she is ordinarily |
2 | | required to apportion business income under different |
3 | | subsections of Section 304. The addition modification |
4 | | required by this subparagraph shall be reduced to the |
5 | | extent that dividends were included in base income of |
6 | | the unitary group for the same taxable year and |
7 | | received by the taxpayer or by a member of the |
8 | | taxpayer's unitary business group (including amounts |
9 | | included in gross income pursuant to Sections 951 |
10 | | through 964 of the Internal Revenue Code and amounts |
11 | | included in gross income under Section 78 of the |
12 | | Internal Revenue Code) with respect to the stock of the |
13 | | same person to whom the interest was paid, accrued, or |
14 | | incurred.
|
15 | | This paragraph shall not apply to the following:
|
16 | | (i) an item of interest paid, accrued, or |
17 | | incurred, directly or indirectly, to a person who |
18 | | is subject in a foreign country or state, other |
19 | | than a state which requires mandatory unitary |
20 | | reporting, to a tax on or measured by net income |
21 | | with respect to such interest; or |
22 | | (ii) an item of interest paid, accrued, or |
23 | | incurred, directly or indirectly, to a person if |
24 | | the taxpayer can establish, based on a |
25 | | preponderance of the evidence, both of the |
26 | | following: |
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1 | | (a) the person, during the same taxable |
2 | | year, paid, accrued, or incurred, the interest |
3 | | to a person that is not a related member, and |
4 | | (b) the transaction giving rise to the |
5 | | interest expense between the taxpayer and the |
6 | | person did not have as a principal purpose the |
7 | | avoidance of Illinois income tax, and is paid |
8 | | pursuant to a contract or agreement that |
9 | | reflects an arm's-length interest rate and |
10 | | terms; or
|
11 | | (iii) the taxpayer can establish, based on |
12 | | clear and convincing evidence, that the interest |
13 | | paid, accrued, or incurred relates to a contract or |
14 | | agreement entered into at arm's-length rates and |
15 | | terms and the principal purpose for the payment is |
16 | | not federal or Illinois tax avoidance; or
|
17 | | (iv) an item of interest paid, accrued, or |
18 | | incurred, directly or indirectly, to a person if |
19 | | the taxpayer establishes by clear and convincing |
20 | | evidence that the adjustments are unreasonable; or |
21 | | if the taxpayer and the Director agree in writing |
22 | | to the application or use of an alternative method |
23 | | of apportionment under Section 304(f).
|
24 | | Nothing in this subsection shall preclude the |
25 | | Director from making any other adjustment |
26 | | otherwise allowed under Section 404 of this Act for |
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1 | | any tax year beginning after the effective date of |
2 | | this amendment provided such adjustment is made |
3 | | pursuant to regulation adopted by the Department |
4 | | and such regulations provide methods and standards |
5 | | by which the Department will utilize its authority |
6 | | under Section 404 of this Act; and
|
7 | | (D-8) An amount equal to the amount of intangible |
8 | | expenses and costs otherwise allowed as a deduction in |
9 | | computing base income, and that were paid, accrued, or |
10 | | incurred, directly or indirectly, (i) for taxable |
11 | | years ending on or after December 31, 2004, to a |
12 | | foreign person who would be a member of the same |
13 | | unitary business group but for the fact that the |
14 | | foreign person's business activity outside the United |
15 | | States is 80% or more of that person's total business |
16 | | activity and (ii) for taxable years ending on or after |
17 | | December 31, 2008, to a person who would be a member of |
18 | | the same unitary business group but for the fact that |
19 | | the person is prohibited under Section 1501(a)(27) |
20 | | from being included in the unitary business group |
21 | | because he or she is ordinarily required to apportion |
22 | | business income under different subsections of Section |
23 | | 304. The addition modification required by this |
24 | | subparagraph shall be reduced to the extent that |
25 | | dividends were included in base income of the unitary |
26 | | group for the same taxable year and received by the |
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1 | | taxpayer or by a member of the taxpayer's unitary |
2 | | business group (including amounts included in gross |
3 | | income pursuant to Sections 951 through 964 of the |
4 | | Internal Revenue Code and amounts included in gross |
5 | | income under Section 78 of the Internal Revenue Code) |
6 | | with respect to the stock of the same person to whom |
7 | | the intangible expenses and costs were directly or |
8 | | indirectly paid, incurred or accrued. The preceding |
9 | | sentence shall not apply to the extent that the same |
10 | | dividends caused a reduction to the addition |
11 | | modification required under Section 203(d)(2)(D-7) of |
12 | | this Act. As used in this subparagraph, the term |
13 | | "intangible expenses and costs" includes (1) expenses, |
14 | | losses, and costs for, or related to, the direct or |
15 | | indirect acquisition, use, maintenance or management, |
16 | | ownership, sale, exchange, or any other disposition of |
17 | | intangible property; (2) losses incurred, directly or |
18 | | indirectly, from factoring transactions or discounting |
19 | | transactions; (3) royalty, patent, technical, and |
20 | | copyright fees; (4) licensing fees; and (5) other |
21 | | similar expenses and costs. For purposes of this |
22 | | subparagraph, "intangible property" includes patents, |
23 | | patent applications, trade names, trademarks, service |
24 | | marks, copyrights, mask works, trade secrets, and |
25 | | similar types of intangible assets; |
26 | | This paragraph shall not apply to the following: |
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1 | | (i) any item of intangible expenses or costs |
2 | | paid, accrued, or incurred, directly or |
3 | | indirectly, from a transaction with a person who is |
4 | | subject in a foreign country or state, other than a |
5 | | state which requires mandatory unitary reporting, |
6 | | to a tax on or measured by net income with respect |
7 | | to such item; or |
8 | | (ii) any item of intangible expense or cost |
9 | | paid, accrued, or incurred, directly or |
10 | | indirectly, if the taxpayer can establish, based |
11 | | on a preponderance of the evidence, both of the |
12 | | following: |
13 | | (a) the person during the same taxable |
14 | | year paid, accrued, or incurred, the |
15 | | intangible expense or cost to a person that is |
16 | | not a related member, and |
17 | | (b) the transaction giving rise to the |
18 | | intangible expense or cost between the |
19 | | taxpayer and the person did not have as a |
20 | | principal purpose the avoidance of Illinois |
21 | | income tax, and is paid pursuant to a contract |
22 | | or agreement that reflects arm's-length terms; |
23 | | or |
24 | | (iii) any item of intangible expense or cost |
25 | | paid, accrued, or incurred, directly or |
26 | | indirectly, from a transaction with a person if the |
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1 | | taxpayer establishes by clear and convincing |
2 | | evidence, that the adjustments are unreasonable; |
3 | | or if the taxpayer and the Director agree in |
4 | | writing to the application or use of an alternative |
5 | | method of apportionment under Section 304(f);
|
6 | | Nothing in this subsection shall preclude the |
7 | | Director from making any other adjustment |
8 | | otherwise allowed under Section 404 of this Act for |
9 | | any tax year beginning after the effective date of |
10 | | this amendment provided such adjustment is made |
11 | | pursuant to regulation adopted by the Department |
12 | | and such regulations provide methods and standards |
13 | | by which the Department will utilize its authority |
14 | | under Section 404 of this Act;
|
15 | | (D-9) For taxable years ending on or after December |
16 | | 31, 2008, an amount equal to the amount of insurance |
17 | | premium expenses and costs otherwise allowed as a |
18 | | deduction in computing base income, and that were paid, |
19 | | accrued, or incurred, directly or indirectly, to a |
20 | | person who would be a member of the same unitary |
21 | | business group but for the fact that the person is |
22 | | prohibited under Section 1501(a)(27) from being |
23 | | included in the unitary business group because he or |
24 | | she is ordinarily required to apportion business |
25 | | income under different subsections of Section 304. The |
26 | | addition modification required by this subparagraph |
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1 | | shall be reduced to the extent that dividends were |
2 | | included in base income of the unitary group for the |
3 | | same taxable year and received by the taxpayer or by a |
4 | | member of the taxpayer's unitary business group |
5 | | (including amounts included in gross income under |
6 | | Sections 951 through 964 of the Internal Revenue Code |
7 | | and amounts included in gross income under Section 78 |
8 | | of the Internal Revenue Code) with respect to the stock |
9 | | of the same person to whom the premiums and costs were |
10 | | directly or indirectly paid, incurred, or accrued. The |
11 | | preceding sentence does not apply to the extent that |
12 | | the same dividends caused a reduction to the addition |
13 | | modification required under Section 203(d)(2)(D-7) or |
14 | | Section 203(d)(2)(D-8) of this Act; |
15 | | (D-10) An amount equal to the credit allowable to |
16 | | the taxpayer under Section 218(a) of this Act, |
17 | | determined without regard to Section 218(c) of this |
18 | | Act; |
19 | | and by deducting from the total so obtained the following |
20 | | amounts: |
21 | | (E) The valuation limitation amount; |
22 | | (F) An amount equal to the amount of any tax |
23 | | imposed by this Act which
was refunded to the taxpayer |
24 | | and included in such total for the taxable year; |
25 | | (G) An amount equal to all amounts included in |
26 | | taxable income as
modified by subparagraphs (A), (B), |
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1 | | (C) and (D) which are exempt from
taxation by this |
2 | | State either by reason of its statutes or Constitution |
3 | | or
by reason of
the Constitution, treaties or statutes |
4 | | of the United States;
provided that, in the case of any |
5 | | statute of this State that exempts income
derived from |
6 | | bonds or other obligations from the tax imposed under |
7 | | this Act,
the amount exempted shall be the interest net |
8 | | of bond premium amortization; |
9 | | (H) Any income of the partnership which |
10 | | constitutes personal service
income as defined in |
11 | | Section 1348 (b) (1) of the Internal Revenue Code (as
|
12 | | in effect December 31, 1981) or a reasonable allowance |
13 | | for compensation
paid or accrued for services rendered |
14 | | by partners to the partnership,
whichever is greater ; |
15 | | this subparagraph (H) is exempt from the provisions of |
16 | | Section 250 ; |
17 | | (I) An amount equal to all amounts of income |
18 | | distributable to an entity
subject to the Personal |
19 | | Property Tax Replacement Income Tax imposed by
|
20 | | subsections (c) and (d) of Section 201 of this Act |
21 | | including amounts
distributable to organizations |
22 | | exempt from federal income tax by reason of
Section |
23 | | 501(a) of the Internal Revenue Code ; this subparagraph |
24 | | (I) is exempt from the provisions of Section 250 ; |
25 | | (J) With the exception of any amounts subtracted |
26 | | under subparagraph
(G),
an amount equal to the sum of |
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1 | | all amounts disallowed as deductions
by (i) Sections |
2 | | 171(a) (2), and 265(2) of the Internal Revenue Code of |
3 | | 1954,
as now or hereafter amended , and all amounts of |
4 | | expenses allocable to
interest and disallowed as |
5 | | deductions by Section 265(1) of the Internal
Revenue |
6 | | Code , as now or hereafter amended ;
and (ii) for taxable |
7 | | years
ending on or after August 13, 1999, Sections
|
8 | | 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the |
9 | | Internal Revenue Code , plus, (iii) for taxable years |
10 | | ending on or after December 31, 2011, Section 45G(e)(3) |
11 | | of the Internal Revenue Code and any amount included in |
12 | | gross income under Section 87 of the Internal Revenue |
13 | | Code ; the provisions of this
subparagraph are exempt |
14 | | from the provisions of Section 250; |
15 | | (K) An amount equal to those dividends included in |
16 | | such total which were
paid by a corporation which |
17 | | conducts business operations in an Enterprise
Zone or |
18 | | zones created under the Illinois Enterprise Zone Act, |
19 | | enacted by
the 82nd General Assembly, or a River Edge |
20 | | Redevelopment Zone or zones created under the River |
21 | | Edge Redevelopment Zone Act and
conducts substantially |
22 | | all of its operations
in an Enterprise Zone or Zones or |
23 | | from a River Edge Redevelopment Zone or zones. This |
24 | | subparagraph (K) is exempt from the provisions of |
25 | | Section 250; |
26 | | (L) An amount equal to any contribution made to a |
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1 | | job training project
established pursuant to the Real |
2 | | Property Tax Increment Allocation
Redevelopment Act; |
3 | | (M) An amount equal to those dividends included in |
4 | | such total
that were paid by a corporation that |
5 | | conducts business operations in a
federally designated |
6 | | Foreign Trade Zone or Sub-Zone and that is designated a
|
7 | | High Impact Business located in Illinois; provided |
8 | | that dividends eligible
for the deduction provided in |
9 | | subparagraph (K) of paragraph (2) of this
subsection |
10 | | shall not be eligible for the deduction provided under |
11 | | this
subparagraph (M); |
12 | | (N) An amount equal to the amount of the deduction |
13 | | used to compute the
federal income tax credit for |
14 | | restoration of substantial amounts held under
claim of |
15 | | right for the taxable year pursuant to Section 1341 of |
16 | | the
Internal Revenue Code of 1986 ; |
17 | | (O) For taxable years 2001 and thereafter, for the |
18 | | taxable year in
which the bonus depreciation deduction
|
19 | | is taken on the taxpayer's federal income tax return |
20 | | under
subsection (k) of Section 168 of the Internal |
21 | | Revenue Code and for each
applicable taxable year |
22 | | thereafter, an amount equal to "x", where: |
23 | | (1) "y" equals the amount of the depreciation |
24 | | deduction taken for the
taxable year
on the |
25 | | taxpayer's federal income tax return on property |
26 | | for which the bonus
depreciation deduction
was |
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1 | | taken in any year under subsection (k) of Section |
2 | | 168 of the Internal
Revenue Code, but not including |
3 | | the bonus depreciation deduction; |
4 | | (2) for taxable years ending on or before |
5 | | December 31, 2005, "x" equals "y" multiplied by 30 |
6 | | and then divided by 70 (or "y"
multiplied by |
7 | | 0.429); and |
8 | | (3) for taxable years ending after December |
9 | | 31, 2005: |
10 | | (i) for property on which a bonus |
11 | | depreciation deduction of 30% of the adjusted |
12 | | basis was taken, "x" equals "y" multiplied by |
13 | | 30 and then divided by 70 (or "y"
multiplied by |
14 | | 0.429); and |
15 | | (ii) for property on which a bonus |
16 | | depreciation deduction of 50% of the adjusted |
17 | | basis was taken, "x" equals "y" multiplied by |
18 | | 1.0. |
19 | | The aggregate amount deducted under this |
20 | | subparagraph in all taxable
years for any one piece of |
21 | | property may not exceed the amount of the bonus
|
22 | | depreciation deduction
taken on that property on the |
23 | | taxpayer's federal income tax return under
subsection |
24 | | (k) of Section 168 of the Internal Revenue Code. This |
25 | | subparagraph (O) is exempt from the provisions of |
26 | | Section 250; |
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1 | | (P) If the taxpayer sells, transfers, abandons, or |
2 | | otherwise disposes of
property for which the taxpayer |
3 | | was required in any taxable year to make an
addition |
4 | | modification under subparagraph (D-5), then an amount |
5 | | equal to that
addition modification. |
6 | | If the taxpayer continues to own property through |
7 | | the last day of the last tax year for which the |
8 | | taxpayer may claim a depreciation deduction for |
9 | | federal income tax purposes and for which the taxpayer |
10 | | was required in any taxable year to make an addition |
11 | | modification under subparagraph (D-5), then an amount |
12 | | equal to that addition modification.
|
13 | | The taxpayer is allowed to take the deduction under |
14 | | this subparagraph
only once with respect to any one |
15 | | piece of property. |
16 | | This subparagraph (P) is exempt from the |
17 | | provisions of Section 250; |
18 | | (Q) The amount of (i) any interest income (net of |
19 | | the deductions allocable thereto) taken into account |
20 | | for the taxable year with respect to a transaction with |
21 | | a taxpayer that is required to make an addition |
22 | | modification with respect to such transaction under |
23 | | Section 203(a)(2)(D-17), 203(b)(2)(E-12), |
24 | | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
25 | | the amount of such addition modification and
(ii) any |
26 | | income from intangible property (net of the deductions |
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1 | | allocable thereto) taken into account for the taxable |
2 | | year with respect to a transaction with a taxpayer that |
3 | | is required to make an addition modification with |
4 | | respect to such transaction under Section |
5 | | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
6 | | 203(d)(2)(D-8), but not to exceed the amount of such |
7 | | addition modification. This subparagraph (Q) is exempt |
8 | | from Section 250;
|
9 | | (R) An amount equal to the interest income taken |
10 | | into account for the taxable year (net of the |
11 | | deductions allocable thereto) with respect to |
12 | | transactions with (i) a foreign person who would be a |
13 | | member of the taxpayer's unitary business group but for |
14 | | the fact that the foreign person's business activity |
15 | | outside the United States is 80% or more of that |
16 | | person's total business activity and (ii) for taxable |
17 | | years ending on or after December 31, 2008, to a person |
18 | | who would be a member of the same unitary business |
19 | | group but for the fact that the person is prohibited |
20 | | under Section 1501(a)(27) from being included in the |
21 | | unitary business group because he or she is ordinarily |
22 | | required to apportion business income under different |
23 | | subsections of Section 304, but not to exceed the |
24 | | addition modification required to be made for the same |
25 | | taxable year under Section 203(d)(2)(D-7) for interest |
26 | | paid, accrued, or incurred, directly or indirectly, to |
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1 | | the same person. This subparagraph (R) is exempt from |
2 | | Section 250; and |
3 | | (S) An amount equal to the income from intangible |
4 | | property taken into account for the taxable year (net |
5 | | of the deductions allocable thereto) with respect to |
6 | | transactions with (i) a foreign person who would be a |
7 | | member of the taxpayer's unitary business group but for |
8 | | the fact that the foreign person's business activity |
9 | | outside the United States is 80% or more of that |
10 | | person's total business activity and (ii) for taxable |
11 | | years ending on or after December 31, 2008, to a person |
12 | | who would be a member of the same unitary business |
13 | | group but for the fact that the person is prohibited |
14 | | under Section 1501(a)(27) from being included in the |
15 | | unitary business group because he or she is ordinarily |
16 | | required to apportion business income under different |
17 | | subsections of Section 304, but not to exceed the |
18 | | addition modification required to be made for the same |
19 | | taxable year under Section 203(d)(2)(D-8) for |
20 | | intangible expenses and costs paid, accrued, or |
21 | | incurred, directly or indirectly, to the same person. |
22 | | This subparagraph (S) is exempt from Section 250 ; and .
|
23 | | (T) For taxable years ending on or after December |
24 | | 31, 2011, in the case of a taxpayer who was required to |
25 | | add back any insurance premiums under Section |
26 | | 203(d)(2)(D-9), such taxpayer may elect to subtract |
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|
1 | | that part of a reimbursement received from the |
2 | | insurance company equal to the amount of the expense or |
3 | | loss (including expenses incurred by the insurance |
4 | | company) that would have been taken into account as a |
5 | | deduction for federal income tax purposes if the |
6 | | expense or loss had been uninsured. If a taxpayer makes |
7 | | the election provided for by this subparagraph (T), the |
8 | | insurer to which the premiums were paid must add back |
9 | | to income the amount subtracted by the taxpayer |
10 | | pursuant to this subparagraph (T). This subparagraph |
11 | | (T) is exempt from the provisions of Section 250. |
12 | | (e) Gross income; adjusted gross income; taxable income. |
13 | | (1) In general. Subject to the provisions of paragraph |
14 | | (2) and
subsection (b) (3), for purposes of this Section |
15 | | and Section 803(e), a
taxpayer's gross income, adjusted |
16 | | gross income, or taxable income for
the taxable year shall |
17 | | mean the amount of gross income, adjusted gross
income or |
18 | | taxable income properly reportable for federal income tax
|
19 | | purposes for the taxable year under the provisions of the |
20 | | Internal
Revenue Code. Taxable income may be less than |
21 | | zero. However, for taxable
years ending on or after |
22 | | December 31, 1986, net operating loss
carryforwards from |
23 | | taxable years ending prior to December 31, 1986, may not
|
24 | | exceed the sum of federal taxable income for the taxable |
25 | | year before net
operating loss deduction, plus the excess |
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1 | | of addition modifications over
subtraction modifications |
2 | | for the taxable year. For taxable years ending
prior to |
3 | | December 31, 1986, taxable income may never be an amount in |
4 | | excess
of the net operating loss for the taxable year as |
5 | | defined in subsections
(c) and (d) of Section 172 of the |
6 | | Internal Revenue Code, provided that when
taxable income of |
7 | | a corporation (other than a Subchapter S corporation),
|
8 | | trust, or estate is less than zero and addition |
9 | | modifications, other than
those provided by subparagraph |
10 | | (E) of paragraph (2) of subsection (b) for
corporations or |
11 | | subparagraph (E) of paragraph (2) of subsection (c) for
|
12 | | trusts and estates, exceed subtraction modifications, an |
13 | | addition
modification must be made under those |
14 | | subparagraphs for any other taxable
year to which the |
15 | | taxable income less than zero (net operating loss) is
|
16 | | applied under Section 172 of the Internal Revenue Code or |
17 | | under
subparagraph (E) of paragraph (2) of this subsection |
18 | | (e) applied in
conjunction with Section 172 of the Internal |
19 | | Revenue Code. |
20 | | (2) Special rule. For purposes of paragraph (1) of this |
21 | | subsection,
the taxable income properly reportable for |
22 | | federal income tax purposes
shall mean: |
23 | | (A) Certain life insurance companies. In the case |
24 | | of a life
insurance company subject to the tax imposed |
25 | | by Section 801 of the
Internal Revenue Code, life |
26 | | insurance company taxable income, plus the
amount of |
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1 | | distribution from pre-1984 policyholder surplus |
2 | | accounts as
calculated under Section 815a of the |
3 | | Internal Revenue Code; |
4 | | (B) Certain other insurance companies. In the case |
5 | | of mutual
insurance companies subject to the tax |
6 | | imposed by Section 831 of the
Internal Revenue Code, |
7 | | insurance company taxable income; |
8 | | (C) Regulated investment companies. In the case of |
9 | | a regulated
investment company subject to the tax |
10 | | imposed by Section 852 of the
Internal Revenue Code, |
11 | | investment company taxable income; |
12 | | (D) Real estate investment trusts. In the case of a |
13 | | real estate
investment trust subject to the tax imposed |
14 | | by Section 857 of the
Internal Revenue Code, real |
15 | | estate investment trust taxable income; |
16 | | (E) Consolidated corporations. In the case of a |
17 | | corporation which
is a member of an affiliated group of |
18 | | corporations filing a consolidated
income tax return |
19 | | for the taxable year for federal income tax purposes,
|
20 | | taxable income determined as if such corporation had |
21 | | filed a separate
return for federal income tax purposes |
22 | | for the taxable year and each
preceding taxable year |
23 | | for which it was a member of an affiliated group.
For |
24 | | purposes of this subparagraph, the taxpayer's separate |
25 | | taxable
income shall be determined as if the election |
26 | | provided by Section
243(b) (2) of the Internal Revenue |
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1 | | Code had been in effect for all such years; |
2 | | (F) Cooperatives. In the case of a cooperative |
3 | | corporation or
association, the taxable income of such |
4 | | organization determined in
accordance with the |
5 | | provisions of Section 1381 through 1388 of the
Internal |
6 | | Revenue Code, but without regard to the prohibition |
7 | | against offsetting losses from patronage activities |
8 | | against income from nonpatronage activities; except |
9 | | that a cooperative corporation or association may make |
10 | | an election to follow its federal income tax treatment |
11 | | of patronage losses and nonpatronage losses. In the |
12 | | event such election is made, such losses shall be |
13 | | computed and carried over in a manner consistent with |
14 | | subsection (a) of Section 207 of this Act and |
15 | | apportioned by the apportionment factor reported by |
16 | | the cooperative on its Illinois income tax return filed |
17 | | for the taxable year in which the losses are incurred. |
18 | | The election shall be effective for all taxable years |
19 | | with original returns due on or after the date of the |
20 | | election. In addition, the cooperative may file an |
21 | | amended return or returns, as allowed under this Act, |
22 | | to provide that the election shall be effective for |
23 | | losses incurred or carried forward for taxable years |
24 | | occurring prior to the date of the election. Once made, |
25 | | the election may only be revoked upon approval of the |
26 | | Director. The Department shall adopt rules setting |
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1 | | forth requirements for documenting the elections and |
2 | | any resulting Illinois net loss and the standards to be |
3 | | used by the Director in evaluating requests to revoke |
4 | | elections. Public Act 96-932 This amendatory Act of the |
5 | | 96th General Assembly is declaratory of existing law; |
6 | | (G) Subchapter S corporations. In the case of: (i) |
7 | | a Subchapter S
corporation for which there is in effect |
8 | | an election for the taxable year
under Section 1362 of |
9 | | the Internal Revenue Code, the taxable income of such
|
10 | | corporation determined in accordance with Section |
11 | | 1363(b) of the Internal
Revenue Code, except that |
12 | | taxable income shall take into
account those items |
13 | | which are required by Section 1363(b)(1) of the
|
14 | | Internal Revenue Code to be separately stated; and (ii) |
15 | | a Subchapter
S corporation for which there is in effect |
16 | | a federal election to opt out of
the provisions of the |
17 | | Subchapter S Revision Act of 1982 and have applied
|
18 | | instead the prior federal Subchapter S rules as in |
19 | | effect on July 1, 1982,
the taxable income of such |
20 | | corporation determined in accordance with the
federal |
21 | | Subchapter S rules as in effect on July 1, 1982; and |
22 | | (H) Partnerships. In the case of a partnership, |
23 | | taxable income
determined in accordance with Section |
24 | | 703 of the Internal Revenue Code,
except that taxable |
25 | | income shall take into account those items which are
|
26 | | required by Section 703(a)(1) to be separately stated |
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1 | | but which would be
taken into account by an individual |
2 | | in calculating his taxable income. |
3 | | (3) Recapture of business expenses on disposition of |
4 | | asset or business. Notwithstanding any other law to the |
5 | | contrary, if in prior years income from an asset or |
6 | | business has been classified as business income and in a |
7 | | later year is demonstrated to be non-business income, then |
8 | | all expenses, without limitation, deducted in such later |
9 | | year and in the 2 immediately preceding taxable years |
10 | | related to that asset or business that generated the |
11 | | non-business income shall be added back and recaptured as |
12 | | business income in the year of the disposition of the asset |
13 | | or business. Such amount shall be apportioned to Illinois |
14 | | using the greater of the apportionment fraction computed |
15 | | for the business under Section 304 of this Act for the |
16 | | taxable year or the average of the apportionment fractions |
17 | | computed for the business under Section 304 of this Act for |
18 | | the taxable year and for the 2 immediately preceding |
19 | | taxable years.
|
20 | | (f) Valuation limitation amount. |
21 | | (1) In general. The valuation limitation amount |
22 | | referred to in
subsections (a) (2) (G), (c) (2) (I) and |
23 | | (d)(2) (E) is an amount equal to: |
24 | | (A) The sum of the pre-August 1, 1969 appreciation |
25 | | amounts (to the
extent consisting of gain reportable |
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1 | | under the provisions of Section
1245 or 1250 of the |
2 | | Internal Revenue Code) for all property in respect
of |
3 | | which such gain was reported for the taxable year; plus |
4 | | (B) The lesser of (i) the sum of the pre-August 1, |
5 | | 1969 appreciation
amounts (to the extent consisting of |
6 | | capital gain) for all property in
respect of which such |
7 | | gain was reported for federal income tax purposes
for |
8 | | the taxable year, or (ii) the net capital gain for the |
9 | | taxable year,
reduced in either case by any amount of |
10 | | such gain included in the amount
determined under |
11 | | subsection (a) (2) (F) or (c) (2) (H). |
12 | | (2) Pre-August 1, 1969 appreciation amount. |
13 | | (A) If the fair market value of property referred |
14 | | to in paragraph
(1) was readily ascertainable on August |
15 | | 1, 1969, the pre-August 1, 1969
appreciation amount for |
16 | | such property is the lesser of (i) the excess of
such |
17 | | fair market value over the taxpayer's basis (for |
18 | | determining gain)
for such property on that date |
19 | | (determined under the Internal Revenue
Code as in |
20 | | effect on that date), or (ii) the total gain realized |
21 | | and
reportable for federal income tax purposes in |
22 | | respect of the sale,
exchange or other disposition of |
23 | | such property. |
24 | | (B) If the fair market value of property referred |
25 | | to in paragraph
(1) was not readily ascertainable on |
26 | | August 1, 1969, the pre-August 1,
1969 appreciation |
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1 | | amount for such property is that amount which bears
the |
2 | | same ratio to the total gain reported in respect of the |
3 | | property for
federal income tax purposes for the |
4 | | taxable year, as the number of full
calendar months in |
5 | | that part of the taxpayer's holding period for the
|
6 | | property ending July 31, 1969 bears to the number of |
7 | | full calendar
months in the taxpayer's entire holding |
8 | | period for the
property. |
9 | | (C) The Department shall prescribe such |
10 | | regulations as may be
necessary to carry out the |
11 | | purposes of this paragraph. |
12 | | (g) Double deductions. Unless specifically provided |
13 | | otherwise, nothing
in this Section shall permit the same item |
14 | | to be deducted more than once. |
15 | | (h) Legislative intention. Except as expressly provided by |
16 | | this
Section there shall be no modifications or limitations on |
17 | | the amounts
of income, gain, loss or deduction taken into |
18 | | account in determining
gross income, adjusted gross income or |
19 | | taxable income for federal income
tax purposes for the taxable |
20 | | year, or in the amount of such items
entering into the |
21 | | computation of base income and net income under this
Act for |
22 | | such taxable year, whether in respect of property values as of
|
23 | | August 1, 1969 or otherwise. |
24 | | (Source: P.A. 95-23, eff. 8-3-07; 95-233, eff. 8-16-07; 95-286, |
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1 | | eff. 8-20-07; 95-331, eff. 8-21-07; 95-707, eff. 1-11-08; |
2 | | 95-876, eff. 8-21-08; 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; |
3 | | 96-198, eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. |
4 | | 8-14-09; 96-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935, |
5 | | eff. 6-21-10; 96-1214, eff. 7-22-10; revised 9-16-10.)
|
6 | | (35 ILCS 5/204) (from Ch. 120, par. 2-204)
|
7 | | Sec. 204. Standard Exemption.
|
8 | | (a) Allowance of exemption. In computing net income under |
9 | | this Act, there
shall be allowed as an exemption the sum of the |
10 | | amounts determined under
subsections (b), (c) and (d), |
11 | | multiplied by a fraction the numerator of which
is the amount |
12 | | of the taxpayer's base income allocable to this State for the
|
13 | | taxable year and the denominator of which is the taxpayer's |
14 | | total base income
for the taxable year.
|
15 | | (b) Basic amount. For the purpose of subsection (a) of this |
16 | | Section,
except as provided by subsection (a) of Section 205 |
17 | | and in this
subsection, each taxpayer shall be allowed a basic |
18 | | amount of $1000, except
that for corporations the basic amount |
19 | | shall be zero for tax years ending on
or
after December 31, |
20 | | 2003, and for individuals the basic amount shall be:
|
21 | | (1) for taxable years ending on or after December 31, |
22 | | 1998 and prior to
December 31, 1999, $1,300;
|
23 | | (2) for taxable years ending on or after December 31, |
24 | | 1999 and prior to
December 31, 2000, $1,650;
|
25 | | (3) for taxable years ending on or after December 31, |
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1 | | 2000, $2,000.
|
2 | | For taxable years ending on or after December 31, 1992, a |
3 | | taxpayer whose
Illinois base income exceeds the basic amount |
4 | | and who is claimed as a dependent
on another person's tax |
5 | | return under the Internal Revenue Code of 1986 shall
not be |
6 | | allowed any basic amount under this subsection.
|
7 | | (c) Additional amount for individuals. In the case of an |
8 | | individual
taxpayer, there shall be allowed for the purpose of |
9 | | subsection (a), in
addition to the basic amount provided by |
10 | | subsection (b), an additional
exemption equal to the basic |
11 | | amount for each
exemption in excess of one
allowable to such |
12 | | individual taxpayer for the taxable year under Section
151 of |
13 | | the Internal Revenue Code.
|
14 | | (d) Additional exemptions for an individual taxpayer and |
15 | | his or her
spouse. In the case of an individual taxpayer and |
16 | | his or her spouse, he or
she shall each be allowed additional |
17 | | exemptions as follows:
|
18 | | (1) Additional exemption for taxpayer or spouse 65 |
19 | | years of age or older.
|
20 | | (A) For taxpayer. An additional exemption of |
21 | | $1,000 for the taxpayer if
he or she has attained the |
22 | | age of 65 before the end of the taxable year.
|
23 | | (B) For spouse when a joint return is not filed. An |
24 | | additional
exemption of $1,000 for the spouse of the |
25 | | taxpayer if a joint return is not
made by the taxpayer |
26 | | and his spouse, and if the spouse has attained the age
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1 | | of 65 before the end of such taxable year, and, for the |
2 | | calendar year in
which the taxable year of the taxpayer |
3 | | begins, has no gross income and is
not the dependent of |
4 | | another taxpayer.
|
5 | | (2) Additional exemption for blindness of taxpayer or |
6 | | spouse.
|
7 | | (A) For taxpayer. An additional exemption of |
8 | | $1,000 for the taxpayer if
he or she is blind at the |
9 | | end of the taxable year.
|
10 | | (B) For spouse when a joint return is not filed. An |
11 | | additional
exemption of $1,000 for the spouse of the |
12 | | taxpayer if a separate return is made
by the taxpayer, |
13 | | and if the spouse is blind and, for the calendar year |
14 | | in which
the taxable year of the taxpayer begins, has |
15 | | no gross income and is not the
dependent of another |
16 | | taxpayer. For purposes of this paragraph, the
|
17 | | determination of whether the spouse is blind shall be |
18 | | made as of the end of the
taxable year of the taxpayer; |
19 | | except that if the spouse dies during such
taxable year |
20 | | such determination shall be made as of the time of such |
21 | | death.
|
22 | | (C) Blindness defined. For purposes of this |
23 | | subsection, an individual
is blind only if his or her |
24 | | central visual acuity does not exceed 20/200 in
the |
25 | | better eye with correcting lenses, or if his or her |
26 | | visual acuity is
greater than 20/200 but is accompanied |
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1 | | by a limitation in the fields of
vision such that the |
2 | | widest diameter of the visual fields subtends an angle
|
3 | | no greater than 20 degrees.
|
4 | | (e) Cross reference. See Article 3 for the manner of |
5 | | determining
base income allocable to this State.
|
6 | | (f) Application of Section 250. Section 250 does not apply |
7 | | to the
amendments to this Section made by Public Act 90-613.
|
8 | | (Source: P.A. 93-29, eff. 6-20-03.)
|
9 | | (35 ILCS 5/205) (from Ch. 120, par. 2-205)
|
10 | | Sec. 205. Exempt organizations.
|
11 | | (a) Charitable, etc. organizations. The base income of an
|
12 | | organization which is exempt from the federal income tax by |
13 | | reason of
Section 501(a) of the Internal Revenue Code shall not |
14 | | be determined
under section 203 of this Act, but shall be its |
15 | | unrelated business
taxable income as determined under section |
16 | | 512 of the Internal Revenue
Code, without any deduction for the |
17 | | tax imposed by this Act. The
standard exemption provided by |
18 | | section 204 of this Act shall not be
allowed in determining the |
19 | | net income of an organization to which this
subsection applies.
|
20 | | (b) Partnerships. A partnership as such shall not be |
21 | | subject to
the tax imposed by subsection 201 (a) and (b) of |
22 | | this Act, but shall be
subject to the replacement tax imposed |
23 | | by subsection 201 (c) and (d) of
this Act and shall compute its |
24 | | base income as described in subsection (d)
of Section 203 of |
25 | | this Act. For taxable years ending on or after December 31, |
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1 | | 2004, an investment partnership, as defined in Section |
2 | | 1501(a)(11.5) of this Act, shall not be subject to the tax |
3 | | imposed by subsections (c) and (d) of Section 201 of this Act.
|
4 | | A partnership shall file such returns and other
information at |
5 | | such
time and in such manner as may be required under Article 5 |
6 | | of this Act.
The partners in a partnership shall be liable for |
7 | | the replacement tax imposed
by subsection 201 (c) and (d) of |
8 | | this Act on such partnership, to the extent
such tax is not |
9 | | paid by the partnership, as provided under the laws of Illinois
|
10 | | governing the liability of partners for the obligations of a |
11 | | partnership.
Persons carrying on business as partners shall be |
12 | | liable for the tax
imposed by subsection 201 (a) and (b) of |
13 | | this Act only in their separate
or individual capacities.
|
14 | | (c) Subchapter S corporations. A Subchapter S corporation |
15 | | shall not
be subject to the tax imposed by subsection 201 (a) |
16 | | and
(b) of this Act but shall be subject to the replacement tax |
17 | | imposed by subsection
201 (c) and (d) of this Act and shall |
18 | | file such returns
and other information
at such time and in |
19 | | such manner as may be required under Article 5 of this Act.
|
20 | | (d) Combat zone , terrorist attack, and certain other deaths |
21 | | death . An individual relieved from the federal
income tax for |
22 | | any taxable year by reason of section 692 of the Internal
|
23 | | Revenue Code shall not be subject to the tax imposed by this |
24 | | Act for
such taxable year.
|
25 | | (e) Certain trusts. A common trust fund described in |
26 | | Section 584
of the Internal Revenue Code, and any other trust |
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1 | | to the extent that the
grantor is treated as the owner thereof |
2 | | under sections 671 through 678
of the Internal Revenue Code |
3 | | shall not be subject to the tax imposed by
this Act.
|
4 | | (f) Certain business activities. A person not otherwise |
5 | | subject to the tax
imposed by this Act shall not become subject |
6 | | to the tax imposed by this Act by
reason of:
|
7 | | (1) that person's ownership of tangible personal |
8 | | property located at the
premises of
a printer in this State |
9 | | with which the person has contracted for printing, or
|
10 | | (2) activities of the person's employees or agents |
11 | | located solely at the
premises of a printer and related to |
12 | | quality control, distribution, or printing
services |
13 | | performed by a printer in the State with which the person |
14 | | has
contracted for printing.
|
15 | | (g) A nonprofit risk organization that holds a certificate |
16 | | of authority under Article VIID of the Illinois Insurance Code |
17 | | is exempt from the tax imposed under this Act with respect to |
18 | | its activities or operations in furtherance of the powers |
19 | | conferred upon it under that Article VIID of the Illinois |
20 | | Insurance Code.
|
21 | | (Source: P.A. 95-233, eff. 8-16-07; 95-331, eff. 8-21-07.)
|
22 | | (35 ILCS 5/207) (from Ch. 120, par. 2-207)
|
23 | | Sec. 207. Net Losses.
|
24 | | (a) If after applying all of the (i) modifications
provided |
25 | | for in paragraph (2) of Section 203(b), paragraph (2) of |
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1 | | Section
203(c) and paragraph (2) of Section 203(d) and (ii) the |
2 | | allocation and
apportionment provisions of Article 3 of this
|
3 | | Act and subsection (c) of this Section, the taxpayer's net |
4 | | income results in a loss;
|
5 | | (1) for any taxable year ending prior to December 31, |
6 | | 1999, such loss
shall be allowed
as a carryover or |
7 | | carryback deduction in the manner allowed under Section
172 |
8 | | of the Internal Revenue Code;
|
9 | | (2) for any taxable year ending on or after December |
10 | | 31, 1999 and prior
to December 31, 2003, such loss
shall be |
11 | | allowed as a carryback to each of the 2 taxable years |
12 | | preceding the
taxable year of such loss and shall be a net |
13 | | operating loss carryover to each of the
20 taxable years |
14 | | following the taxable year of such loss; and
|
15 | | (3) for any taxable year ending on or after December |
16 | | 31, 2003, such loss
shall be allowed as a net operating |
17 | | loss carryover to each of the 12 taxable years
following |
18 | | the taxable year of such loss, except as provided in |
19 | | subsection (d).
|
20 | | (a-5) Election to relinquish carryback and order of |
21 | | application of
losses.
|
22 | | (A) For losses incurred in tax years ending prior |
23 | | to December 31,
2003, the taxpayer may elect to |
24 | | relinquish the entire carryback period
with respect to |
25 | | such loss. Such election shall be made in the form and |
26 | | manner
prescribed by the Department and shall be made |
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1 | | by the due date (including
extensions of time) for |
2 | | filing the taxpayer's return for the taxable year in
|
3 | | which such loss is incurred, and such election, once |
4 | | made, shall be
irrevocable.
|
5 | | (B) The entire amount of such loss shall be carried |
6 | | to the earliest
taxable year to which such loss may be |
7 | | carried. The amount of such loss which
shall be carried |
8 | | to each of the other taxable years shall be the excess, |
9 | | if
any, of the amount of such loss over the sum of the |
10 | | deductions for carryback or
carryover of such loss |
11 | | allowable for each of the prior taxable years to which
|
12 | | such loss may be carried.
|
13 | | (b) Any loss determined under subsection (a) of this |
14 | | Section must be carried
back or carried forward in the same |
15 | | manner for purposes of subsections (a)
and (b) of Section 201 |
16 | | of this Act as for purposes of subsections (c) and
(d) of |
17 | | Section 201 of this Act.
|
18 | | (c) Notwithstanding any other provision of this Act, for |
19 | | each taxable year ending on or after December 31, 2008, for |
20 | | purposes of computing the loss for the taxable year under |
21 | | subsection (a) of this Section and the deduction taken into |
22 | | account for the taxable year for a net operating loss carryover |
23 | | under paragraphs (1), (2), and (3) of subsection (a) of this |
24 | | Section, the loss and net operating loss carryover shall be |
25 | | reduced in an amount equal to the reduction to the net |
26 | | operating loss and net operating loss carryover to the taxable |
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1 | | year, respectively, required under Section 108(b)(2)(A) of the |
2 | | Internal Revenue Code, multiplied by a fraction, the numerator |
3 | | of which is the amount of discharge of indebtedness income that |
4 | | is excluded from gross income for the taxable year (but only if |
5 | | the taxable year ends on or after December 31, 2008) under |
6 | | Section 108(a) of the Internal Revenue Code and that would have |
7 | | been allocated and apportioned to this State under Article 3 of |
8 | | this Act but for that exclusion, and the denominator of which |
9 | | is the total amount of discharge of indebtedness income |
10 | | excluded from gross income under Section 108(a) of the Internal |
11 | | Revenue Code for the taxable year. The reduction required under |
12 | | this subsection (c) shall be made after the determination of |
13 | | Illinois net income for the taxable year in which the |
14 | | indebtedness is discharged.
|
15 | | (d) In the case of a corporation (other than a Subchapter S |
16 | | corporation), no carryover deduction shall be allowed under |
17 | | this Section for any taxable year ending after December 31, |
18 | | 2010 and prior to December 31, 2014; provided that, for |
19 | | purposes of determining the taxable years to which a net loss |
20 | | may be carried under subsection (a) of this Section, no taxable |
21 | | year for which a deduction is disallowed under this subsection |
22 | | shall be counted. |
23 | | (e) In the case of a residual interest holder in a real |
24 | | estate mortgage investment conduit subject to Section 860E of |
25 | | the Internal Revenue Code, the net loss in subsection (a) shall |
26 | | be equal to: |
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1 | | (1) the amount computed under subsection (a), without |
2 | | regard to this subsection (e), or if that amount is |
3 | | positive, zero; |
4 | | (2) minus an amount equal to the amount computed under |
5 | | subsection (a), without regard to this subsection (e), |
6 | | minus the amount that would be computed under subsection |
7 | | (a) if the taxpayer's federal taxable income were computed |
8 | | without regard to Section 860E of the Internal Revenue Code |
9 | | and without regard to this subsection (e). |
10 | | The modification in this subsection (e) is exempt from the |
11 | | provisions of Section 250. |
12 | | (Source: P.A. 95-233, eff. 8-16-07; 96-1496, eff. 1-13-11.)
|
13 | | (35 ILCS 5/214)
|
14 | | Sec. 214. Tax credit for affordable housing donations.
|
15 | | (a) Beginning with taxable years ending on or after |
16 | | December 31, 2001 and
until the taxable year ending on December |
17 | | 31, 2016, a taxpayer who makes a
donation under Section 7.28 of |
18 | | the Illinois Housing Development Act is entitled to a credit
|
19 | | against the tax imposed by subsections (a) and (b) of Section |
20 | | 201 in an amount
equal
to 50% of the value of the donation. |
21 | | Partners, shareholders of subchapter S
corporations, and |
22 | | owners of limited liability companies (if the limited
liability |
23 | | company is treated as a partnership for purposes of federal and |
24 | | State
income
taxation) are entitled to a credit under this |
25 | | Section to be determined in
accordance with the determination |
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1 | | of income and distributive share of income
under Sections 702 |
2 | | and 703 and subchapter S of the Internal Revenue Code.
Persons |
3 | | or entities not subject to the tax imposed by subsections (a) |
4 | | and (b)
of Section 201 and who make a donation under Section |
5 | | 7.28 of the Illinois
Housing Development Act are entitled to a |
6 | | credit as described in this
subsection and may transfer that |
7 | | credit as described in subsection (c).
|
8 | | (b) If the amount of the credit exceeds the tax liability |
9 | | for the year, the
excess may be carried forward and applied to |
10 | | the tax liability of the 5 taxable
years following the excess |
11 | | credit year. The tax credit shall be applied to the
earliest |
12 | | year for which there is a tax liability. If there are credits |
13 | | for
more than one year that are available to offset a |
14 | | liability, the earlier credit
shall be applied first.
|
15 | | (c) The transfer of the tax credit allowed under this |
16 | | Section may be made
(i) to the purchaser of land that has been |
17 | | designated solely for affordable
housing projects in |
18 | | accordance with the Illinois Housing Development Act or
(ii) to |
19 | | another donor who has also made a donation in accordance with |
20 | | Section 7.28 of the
Illinois Housing
Development Act.
|
21 | | (d) A taxpayer claiming the credit provided by this Section |
22 | | must maintain
and record any information that the Department |
23 | | may require by regulation
regarding the project for which the |
24 | | credit is claimed.
When
claiming the credit provided by this |
25 | | Section, the taxpayer must provide
information regarding the |
26 | | taxpayer's donation to the project under the Illinois Housing |
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1 | | Development Act.
|
2 | | (Source: P.A. 96-1276, eff. 7-26-10.)
|
3 | | (35 ILCS 5/220) |
4 | | Sec. 220. Angel investment credit. |
5 | | (a) As used in this Section: |
6 | | "Applicant" means a corporation, partnership, limited |
7 | | liability company, or a natural person that makes an investment |
8 | | in a qualified new business venture. The term "applicant" does |
9 | | not include a corporation, partnership, limited liability |
10 | | company, or a natural person who has a direct or indirect |
11 | | ownership interest of at least 51% in the profits, capital, or |
12 | | value of the investment or a related member. |
13 | | "Claimant" means an a applicant certified by the Department |
14 | | who files a claim for a credit under this Section. |
15 | | "Department" means the Department of Commerce and Economic |
16 | | Opportunity. |
17 | | "Qualified new business venture" means a business that is |
18 | | registered with the Department under this Section. |
19 | | "Related member" means a person that, with respect to the
|
20 | | investment, is any one of the following: |
21 | | (1) An individual, if the individual and the members of |
22 | | the individual's family (as defined in Section 318 of the |
23 | | Internal Revenue Code) own directly, indirectly,
|
24 | | beneficially, or constructively, in the aggregate, at |
25 | | least 50% of the value of the outstanding profits, capital, |
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1 | | stock, or other ownership interest in the applicant. |
2 | | (2) A partnership, estate, or trust and any partner or |
3 | | beneficiary, if the partnership, estate, or trust and its |
4 | | partners or beneficiaries own directly, indirectly, |
5 | | beneficially, or constructively, in the aggregate, at |
6 | | least 50% of the profits, capital, stock, or other |
7 | | ownership interest in the applicant. |
8 | | (3) A corporation, and any party related to the |
9 | | corporation in a manner that would require an attribution |
10 | | of stock from the corporation under the attribution rules
|
11 | | of Section 318 of the Internal Revenue Code, if the |
12 | | applicant and any other related member own, in the |
13 | | aggregate, directly, indirectly, beneficially, or |
14 | | constructively, at least 50% of the value of the |
15 | | corporation's outstanding stock. |
16 | | (4) A corporation and any party related to that |
17 | | corporation in a manner that would require an attribution |
18 | | of stock from the corporation to the party or from the
|
19 | | party to the corporation under the attribution rules of |
20 | | Section 318 of the Internal Revenue Code, if the |
21 | | corporation and all such related parties own, in the |
22 | | aggregate, at least 50% of the profits, capital, stock, or |
23 | | other ownership interest in the applicant. |
24 | | (5) A person to or from whom there is attribution of |
25 | | stock ownership in accordance with Section 1563(e) of the |
26 | | Internal Revenue Code, except that for purposes of |
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1 | | determining whether a person is a related member under this |
2 | | paragraph, "20%" shall be substituted for "5%" whenever |
3 | | "5%" appears in Section 1563(e) of the Internal Revenue |
4 | | Code. |
5 | | (b) For taxable years beginning after December 31, 2010, |
6 | | and ending on or before December 31, 2016, subject to the |
7 | | limitations provided in this Section, a claimant may claim, as |
8 | | a credit against the tax imposed under subsections (a) and (b) |
9 | | of Section 201 of this Act, an amount equal to 25% of the |
10 | | claimant's investment made directly in a qualified new business |
11 | | venture. The credit under this Section may not exceed the |
12 | | taxpayer's Illinois income tax liability for the taxable year. |
13 | | If the amount of the credit exceeds the tax liability for the |
14 | | year, the excess may be carried forward and applied to the tax |
15 | | liability of the 5 taxable years following the excess credit |
16 | | year. The credit shall be applied to the earliest year for |
17 | | which there is a tax liability. If there are credits from more |
18 | | than one tax year that are available to offset a liability, the |
19 | | earlier credit shall be applied first. In the case of a |
20 | | partnership or Subchapter S Corporation, the credit is allowed |
21 | | to the partners or shareholders in accordance with the |
22 | | determination of income and distributive share of income under |
23 | | Sections 702 and 704 and Subchapter S of the Internal Revenue |
24 | | Code. |
25 | | (c) The maximum amount of an applicant's investment that |
26 | | may be used as the basis for a credit under this Section is |
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1 | | $2,000,000 for each investment made directly in a qualified new |
2 | | business venture. |
3 | | (d) The Department shall implement a program to certify an |
4 | | applicant for an angel investment credit. Upon satisfactory |
5 | | review, the Department shall issue a tax credit certificate |
6 | | stating the amount of the tax credit to which the applicant is |
7 | | entitled. The Department shall annually certify that the |
8 | | claimant's investment has been made and remains in the |
9 | | qualified new business venture for no less than 3 years. If an |
10 | | investment for which a claimant is allowed a credit under |
11 | | subsection (b) is held by the claimant for less than 3 years, |
12 | | or, if within that period of time the qualified new business |
13 | | venture is moved from the State of Illinois, the claimant shall |
14 | | pay to the Department of Revenue, in the manner prescribed by |
15 | | the Department of Revenue, the amount of the credit that the |
16 | | claimant received related to the investment. |
17 | | (e) The Department shall implement a program to register |
18 | | qualified new business ventures for purposes of this Section. A |
19 | | business desiring registration shall submit an application to |
20 | | the Department in each taxable year for which the business |
21 | | desires registration. The Department may register the business |
22 | | only if the business satisfies all of the following conditions: |
23 | | (1) it has its headquarters in this State; |
24 | | (2) at least 51% of the employees employed by the |
25 | | business are employed in this State; |
26 | | (3) it has the potential for increasing jobs in this |
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1 | | State, increasing capital investment in this State, or |
2 | | both, and either of the following apply: |
3 | | (A) it is principally engaged in innovation in any |
4 | | of the following: manufacturing; biotechnology; |
5 | | nanotechnology; communications; agricultural sciences; |
6 | | clean energy creation or storage technology; |
7 | | processing or assembling products, including medical |
8 | | devices, pharmaceuticals, computer software, computer |
9 | | hardware, semiconductors, other innovative technology |
10 | | products, or other products that are produced using |
11 | | manufacturing methods that are enabled by applying |
12 | | proprietary technology; or providing services that are |
13 | | enabled by applying proprietary technology; or |
14 | | (B) it is undertaking pre-commercialization |
15 | | activity related to proprietary technology that |
16 | | includes conducting research, developing a new product |
17 | | or business process, or developing a service that is |
18 | | principally reliant on applying proprietary |
19 | | technology; |
20 | | (4) it is not principally engaged in real estate |
21 | | development, insurance, banking, lending, lobbying, |
22 | | political consulting, professional services provided by |
23 | | attorneys, accountants, business consultants, physicians, |
24 | | or health care consultants, wholesale or retail trade, |
25 | | leisure, hospitality, transportation, or construction, |
26 | | except construction of power production plants that derive |
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1 | | energy from a renewable energy resource, as defined in |
2 | | Section 1 of the Illinois Power Agency Act; |
3 | | (5) it has fewer than 100 employees; |
4 | | (6) it has been in operation in Illinois for not more |
5 | | than 10 consecutive years prior to the year of |
6 | | certification; and |
7 | | (7) it has received not more than (i) $10,000,000 in |
8 | | aggregate private equity investment in cash or (ii) |
9 | | $4,000,000 in investments that qualified for tax credits |
10 | | under this Section. |
11 | | (f) The Department, in consultation with the Department of |
12 | | Revenue, shall adopt rules to administer this Section. The |
13 | | aggregate amount of the tax credits that may be claimed under |
14 | | this Section for investments made in qualified new business |
15 | | ventures shall be limited at $10,000,000 per calendar year. |
16 | | (g) A claimant may not sell or otherwise transfer a credit |
17 | | awarded under this Section to another person. |
18 | | (h) On or before March 1 of each year, the Department shall |
19 | | report to the Governor and to the General Assembly on the tax |
20 | | credit certificates awarded under this Section for the prior |
21 | | calendar year. |
22 | | (1) This report must include, for each tax credit |
23 | | certificate awarded: |
24 | | (A) the name of the claimant and the amount of |
25 | | credit awarded or allocated to that claimant; |
26 | | (B) the name and address of the qualified new |
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1 | | business venture that received the investment giving |
2 | | rise to the credit and the county in which the |
3 | | qualified new business venture is located; and |
4 | | (C) the date of approval by the Department of the |
5 | | applications for the tax credit certificate. |
6 | | (2) The report must also include: |
7 | | (A) the total number of applicants and amount for |
8 | | tax credit certificates awarded under this Section in |
9 | | the prior calendar year; |
10 | | (B) the total number of applications and amount for |
11 | | which tax credit certificates were issued in the prior |
12 | | calendar year; and |
13 | | (C) the total tax credit certificates and amount |
14 | | authorized under this Section for all calendar years.
|
15 | | (Source: P.A. 96-939, eff. 1-1-11.)
|
16 | | (35 ILCS 5/304) (from Ch. 120, par. 3-304)
|
17 | | Sec. 304. Business income of persons other than residents.
|
18 | | (a) In general. The business income of a person other than |
19 | | a
resident shall be allocated to this State if such person's |
20 | | business
income is derived solely from this State. If a person |
21 | | other than a
resident derives business income from this State |
22 | | and one or more other
states, then, for tax years ending on or |
23 | | before December 30, 1998, and
except as otherwise provided by |
24 | | this Section, such
person's business income shall be |
25 | | apportioned to this State by
multiplying the income by a |
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1 | | fraction, the numerator of which is the sum
of the property |
2 | | factor (if any), the payroll factor (if any) and 200% of the
|
3 | | sales factor (if any), and the denominator of which is 4 |
4 | | reduced by the
number of factors other than the sales factor |
5 | | which have a denominator
of zero and by an additional 2 if the |
6 | | sales factor has a denominator of zero.
For tax years ending on |
7 | | or after December 31, 1998, and except as otherwise
provided by |
8 | | this Section, persons other than
residents who derive business |
9 | | income from this State and one or more other
states shall |
10 | | compute their apportionment factor by weighting their |
11 | | property,
payroll, and sales factors as provided in
subsection |
12 | | (h) of this Section.
|
13 | | (1) Property factor.
|
14 | | (A) The property factor is a fraction, the numerator of |
15 | | which is the
average value of the person's real and |
16 | | tangible personal property owned
or rented and used in the |
17 | | trade or business in this State during the
taxable year and |
18 | | the denominator of which is the average value of all
the |
19 | | person's real and tangible personal property owned or |
20 | | rented and
used in the trade or business during the taxable |
21 | | year.
|
22 | | (B) Property owned by the person is valued at its |
23 | | original cost.
Property rented by the person is valued at 8 |
24 | | times the net annual rental
rate. Net annual rental rate is |
25 | | the annual rental rate paid by the
person less any annual |
26 | | rental rate received by the person from
sub-rentals.
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1 | | (C) The average value of property shall be determined |
2 | | by averaging
the values at the beginning and ending of the |
3 | | taxable year but the
Director may require the averaging of |
4 | | monthly values during the taxable
year if reasonably |
5 | | required to reflect properly the average value of the
|
6 | | person's property.
|
7 | | (2) Payroll factor.
|
8 | | (A) The payroll factor is a fraction, the numerator of |
9 | | which is the
total amount paid in this State during the |
10 | | taxable year by the person
for compensation, and the |
11 | | denominator of which is the total compensation
paid |
12 | | everywhere during the taxable year.
|
13 | | (B) Compensation is paid in this State if:
|
14 | | (i) The individual's service is performed entirely |
15 | | within this
State;
|
16 | | (ii) The individual's service is performed both |
17 | | within and without
this State, but the service |
18 | | performed without this State is incidental
to the |
19 | | individual's service performed within this State; or
|
20 | | (iii) Some of the service is performed within this |
21 | | State and either
the base of operations, or if there is |
22 | | no base of operations, the place
from which the service |
23 | | is directed or controlled is within this State,
or the |
24 | | base of operations or the place from which the service |
25 | | is
directed or controlled is not in any state in which |
26 | | some part of the
service is performed, but the |
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1 | | individual's residence is in this State.
|
2 | | (iv) Compensation paid to nonresident professional |
3 | | athletes. |
4 | | (a) General. The Illinois source income of a |
5 | | nonresident individual who is a member of a |
6 | | professional athletic team includes the portion of the |
7 | | individual's total compensation for services performed |
8 | | as a member of a professional athletic team during the |
9 | | taxable year which the number of duty days spent within |
10 | | this State performing services for the team in any |
11 | | manner during the taxable year bears to the total |
12 | | number of duty days spent both within and without this |
13 | | State during the taxable year. |
14 | | (b) Travel days. Travel days that do not involve |
15 | | either a game, practice, team meeting, or other similar |
16 | | team event are not considered duty days spent in this |
17 | | State. However, such travel days are considered in the |
18 | | total duty days spent both within and without this |
19 | | State. |
20 | | (c) Definitions. For purposes of this subpart |
21 | | (iv): |
22 | | (1) The term "professional athletic team" |
23 | | includes, but is not limited to, any professional |
24 | | baseball, basketball, football, soccer, or hockey |
25 | | team. |
26 | | (2) The term "member of a professional |
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1 | | athletic team" includes those employees who are |
2 | | active players, players on the disabled list, and |
3 | | any other persons required to travel and who travel |
4 | | with and perform services on behalf of a |
5 | | professional athletic team on a regular basis. |
6 | | This includes, but is not limited to, coaches, |
7 | | managers, and trainers. |
8 | | (3) Except as provided in items (C) and (D) of |
9 | | this subpart (3), the term "duty days" means all |
10 | | days during the taxable year from the beginning of |
11 | | the professional athletic team's official |
12 | | pre-season training period through the last game |
13 | | in which the team competes or is scheduled to |
14 | | compete. Duty days shall be counted for the year in |
15 | | which they occur, including where a team's |
16 | | official pre-season training period through the |
17 | | last game in which the team competes or is |
18 | | scheduled to compete, occurs during more than one |
19 | | tax year. |
20 | | (A) Duty days shall also include days on |
21 | | which a member of a professional athletic team |
22 | | performs service for a team on a date that does |
23 | | not fall within the foregoing period (e.g., |
24 | | participation in instructional leagues, the |
25 | | "All Star Game", or promotional "caravans"). |
26 | | Performing a service for a professional |
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1 | | athletic team includes conducting training and |
2 | | rehabilitation activities, when such |
3 | | activities are conducted at team facilities. |
4 | | (B) Also included in duty days are game |
5 | | days, practice days, days spent at team |
6 | | meetings, promotional caravans, preseason |
7 | | training camps, and days served with the team |
8 | | through all post-season games in which the team |
9 | | competes or is scheduled to compete. |
10 | | (C) Duty days for any person who joins a |
11 | | team during the period from the beginning of |
12 | | the professional athletic team's official |
13 | | pre-season training period through the last |
14 | | game in which the team competes, or is |
15 | | scheduled to compete, shall begin on the day |
16 | | that person joins the team. Conversely, duty |
17 | | days for any person who leaves a team during |
18 | | this period shall end on the day that person |
19 | | leaves the team. Where a person switches teams |
20 | | during a taxable year, a separate duty-day |
21 | | calculation shall be made for the period the |
22 | | person was with each team. |
23 | | (D) Days for which a member of a |
24 | | professional athletic team is not compensated |
25 | | and is not performing services for the team in |
26 | | any manner, including days when such member of |
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1 | | a professional athletic team has been |
2 | | suspended without pay and prohibited from |
3 | | performing any services for the team, shall not |
4 | | be treated as duty days. |
5 | | (E) Days for which a member of a |
6 | | professional athletic team is on the disabled |
7 | | list and does not conduct rehabilitation |
8 | | activities at facilities of the team, and is |
9 | | not otherwise performing services for the team |
10 | | in Illinois, shall not be considered duty days |
11 | | spent in this State. All days on the disabled |
12 | | list, however, are considered to be included in |
13 | | total duty days spent both within and without |
14 | | this State. |
15 | | (4) The term "total compensation for services |
16 | | performed as a member of a professional athletic |
17 | | team" means the total compensation received during |
18 | | the taxable year for services performed: |
19 | | (A) from the beginning of the official |
20 | | pre-season training period through the last |
21 | | game in which the team competes or is scheduled |
22 | | to compete during that taxable year; and |
23 | | (B) during the taxable year on a date which |
24 | | does not fall within the foregoing period |
25 | | (e.g., participation in instructional leagues, |
26 | | the "All Star Game", or promotional caravans). |
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1 | | This compensation shall include, but is not |
2 | | limited to, salaries, wages, bonuses as described |
3 | | in this subpart, and any other type of compensation |
4 | | paid during the taxable year to a member of a |
5 | | professional athletic team for services performed |
6 | | in that year. This compensation does not include |
7 | | strike benefits, severance pay, termination pay, |
8 | | contract or option year buy-out payments, |
9 | | expansion or relocation payments, or any other |
10 | | payments not related to services performed for the |
11 | | team. |
12 | | For purposes of this subparagraph, "bonuses" |
13 | | included in "total compensation for services |
14 | | performed as a member of a professional athletic |
15 | | team" subject to the allocation described in |
16 | | Section 302(c)(1) are: bonuses earned as a result |
17 | | of play (i.e., performance bonuses) during the |
18 | | season, including bonuses paid for championship, |
19 | | playoff or "bowl" games played by a team, or for |
20 | | selection to all-star league or other honorary |
21 | | positions; and bonuses paid for signing a |
22 | | contract, unless the payment of the signing bonus |
23 | | is not conditional upon the signee playing any |
24 | | games for the team or performing any subsequent |
25 | | services for the team or even making the team, the |
26 | | signing bonus is payable separately from the |
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1 | | salary and any other compensation, and the signing |
2 | | bonus is nonrefundable.
|
3 | | (3) Sales factor.
|
4 | | (A) The sales factor is a fraction, the numerator of |
5 | | which is the
total sales of the person in this State during |
6 | | the taxable year, and the
denominator of which is the total |
7 | | sales of the person everywhere during
the taxable year.
|
8 | | (B) Sales of tangible personal property are in this |
9 | | State if:
|
10 | | (i) The property is delivered or shipped to a |
11 | | purchaser, other than
the United States government, |
12 | | within this State regardless of the f. o.
b. point or |
13 | | other conditions of the sale; or
|
14 | | (ii) The property is shipped from an office, store, |
15 | | warehouse,
factory or other place of storage in this |
16 | | State and either the purchaser
is the United States |
17 | | government or the person is not taxable in the
state of |
18 | | the purchaser; provided, however, that premises owned |
19 | | or leased
by a person who has independently contracted |
20 | | with the seller for the printing
of newspapers, |
21 | | periodicals or books shall not be deemed to be an |
22 | | office,
store, warehouse, factory or other place of |
23 | | storage for purposes of this
Section.
Sales of tangible |
24 | | personal property are not in this State if the
seller |
25 | | and purchaser would be members of the same unitary |
26 | | business group
but for the fact that either the seller |
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1 | | or purchaser is a person with 80%
or more of total |
2 | | business activity outside of the United States and the
|
3 | | property is purchased for resale.
|
4 | | (B-1) Patents, copyrights, trademarks, and similar |
5 | | items of intangible
personal property.
|
6 | | (i) Gross receipts from the licensing, sale, or |
7 | | other disposition of a
patent, copyright, trademark, |
8 | | or similar item of intangible personal property, other |
9 | | than gross receipts governed by paragraph (B-7) of this |
10 | | item (3),
are in this State to the extent the item is |
11 | | utilized in this State during the
year the gross |
12 | | receipts are included in gross income.
|
13 | | (ii) Place of utilization.
|
14 | | (I) A patent is utilized in a state to the |
15 | | extent that it is employed
in production, |
16 | | fabrication, manufacturing, or other processing in |
17 | | the state or
to the extent that a patented product |
18 | | is produced in the state. If a patent is
utilized |
19 | | in
more than one state, the extent to which it is |
20 | | utilized in any one state shall
be a fraction equal |
21 | | to the gross receipts of the licensee or purchaser |
22 | | from
sales or leases of items produced, |
23 | | fabricated, manufactured, or processed
within that |
24 | | state using the patent and of patented items |
25 | | produced within that
state, divided by the total of |
26 | | such gross receipts for all states in which the
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1 | | patent is utilized.
|
2 | | (II) A copyright is utilized in a state to the |
3 | | extent that printing or
other publication |
4 | | originates in the state. If a copyright is utilized |
5 | | in more
than one state, the extent to which it is |
6 | | utilized in any one state shall be a
fraction equal |
7 | | to the gross receipts from sales or licenses of |
8 | | materials
printed or published in that state |
9 | | divided by the total of such gross receipts
for all |
10 | | states in which the copyright is utilized.
|
11 | | (III) Trademarks and other items of intangible |
12 | | personal property
governed by this paragraph (B-1) |
13 | | are utilized in the state in which the
commercial |
14 | | domicile of the licensee or purchaser is located.
|
15 | | (iii) If the state of utilization of an item of |
16 | | property governed by
this paragraph (B-1) cannot be |
17 | | determined from the taxpayer's books and
records or |
18 | | from the books and records of any person related to the |
19 | | taxpayer
within the meaning of Section 267(b) of the |
20 | | Internal Revenue Code, 26 U.S.C.
267, the gross
|
21 | | receipts attributable to that item shall be excluded |
22 | | from both the numerator
and the denominator of the |
23 | | sales factor.
|
24 | | (B-2) Gross receipts from the license, sale, or other |
25 | | disposition of
patents, copyrights, trademarks, and |
26 | | similar items of intangible personal
property, other than |
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1 | | gross receipts governed by paragraph (B-7) of this item |
2 | | (3), may be included in the numerator or denominator of the |
3 | | sales factor
only if gross receipts from licenses, sales, |
4 | | or other disposition of such items
comprise more than 50% |
5 | | of the taxpayer's total gross receipts included in gross
|
6 | | income during the tax year and during each of the 2 |
7 | | immediately preceding tax
years; provided that, when a |
8 | | taxpayer is a member of a unitary business group,
such |
9 | | determination shall be made on the basis of the gross |
10 | | receipts of the
entire unitary business group.
|
11 | | (B-5) For taxable years ending on or after December 31, |
12 | | 2008, except as provided in subsections (ii) through (vii), |
13 | | receipts from the sale of telecommunications service or |
14 | | mobile telecommunications service are in this State if the |
15 | | customer's service address is in this State. |
16 | | (i) For purposes of this subparagraph (B-5), the |
17 | | following follow terms have the following meanings: |
18 | | "Ancillary services" means services that are |
19 | | associated with or incidental to the provision of |
20 | | "telecommunications services", including but not |
21 | | limited to "detailed telecommunications billing", |
22 | | "directory assistance", "vertical service", and "voice |
23 | | mail services". |
24 | | "Air-to-Ground Radiotelephone service" means a |
25 | | radio service, as that term is defined in 47 CFR 22.99, |
26 | | in which common carriers are authorized to offer and |
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1 | | provide radio telecommunications service for hire to |
2 | | subscribers in aircraft. |
3 | | "Call-by-call Basis" means any method of charging |
4 | | for telecommunications services where the price is |
5 | | measured by individual calls. |
6 | | "Communications Channel" means a physical or |
7 | | virtual path of communications over which signals are |
8 | | transmitted between or among customer channel |
9 | | termination points. |
10 | | "Conference bridging service" means an "ancillary |
11 | | service" that links two or more participants of an |
12 | | audio or video conference call and may include the |
13 | | provision of a telephone number. "Conference bridging |
14 | | service" does not include the "telecommunications |
15 | | services" used to reach the conference bridge. |
16 | | "Customer Channel Termination Point" means the |
17 | | location where the customer either inputs or receives |
18 | | the communications. |
19 | | "Detailed telecommunications billing service" |
20 | | means an "ancillary service" of separately stating |
21 | | information pertaining to individual calls on a |
22 | | customer's billing statement. |
23 | | "Directory assistance" means an "ancillary |
24 | | service" of providing telephone number information, |
25 | | and/or address information. |
26 | | "Home service provider" means the facilities based |
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1 | | carrier or reseller with which the customer contracts |
2 | | for the provision of mobile telecommunications |
3 | | services. |
4 | | "Mobile telecommunications service" means |
5 | | commercial mobile radio service, as defined in Section |
6 | | 20.3 of Title 47 of the Code of Federal Regulations as |
7 | | in effect on June 1, 1999. |
8 | | "Place of primary use" means the street address |
9 | | representative of where the customer's use of the |
10 | | telecommunications service primarily occurs, which |
11 | | must be the residential street address or the primary |
12 | | business street address of the customer. In the case of |
13 | | mobile telecommunications services, "place of primary |
14 | | use" must be within the licensed service area of the |
15 | | home service provider. |
16 | | "Post-paid telecommunication service" means the |
17 | | telecommunications service obtained by making a |
18 | | payment on a call-by-call basis either through the use |
19 | | of a credit card or payment mechanism such as a bank |
20 | | card, travel card, credit card, or debit card, or by |
21 | | charge made to a telephone number which is not |
22 | | associated with the origination or termination of the |
23 | | telecommunications service. A post-paid calling |
24 | | service includes telecommunications service, except a |
25 | | prepaid wireless calling service, that would be a |
26 | | prepaid calling service except it is not exclusively a |
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1 | | telecommunication service. |
2 | | "Prepaid telecommunication service" means the |
3 | | right to access exclusively telecommunications |
4 | | services, which must be paid for in advance and which |
5 | | enables the origination of calls using an access number |
6 | | or authorization code, whether manually or |
7 | | electronically dialed, and that is sold in |
8 | | predetermined units or dollars of which the number |
9 | | declines with use in a known amount. |
10 | | "Prepaid Mobile telecommunication service" means a |
11 | | telecommunications service that provides the right to |
12 | | utilize mobile wireless service as well as other |
13 | | non-telecommunication services, including but not |
14 | | limited to ancillary services, which must be paid for |
15 | | in advance that is sold in predetermined units or |
16 | | dollars of which the number declines with use in a |
17 | | known amount. |
18 | | "Private communication service" means a |
19 | | telecommunication service that entitles the customer |
20 | | to exclusive or priority use of a communications |
21 | | channel or group of channels between or among |
22 | | termination points, regardless of the manner in which |
23 | | such channel or channels are connected, and includes |
24 | | switching capacity, extension lines, stations, and any |
25 | | other associated services that are provided in |
26 | | connection with the use of such channel or channels. |
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1 | | "Service address" means: |
2 | | (a) The location of the telecommunications |
3 | | equipment to which a customer's call is charged and |
4 | | from which the call originates or terminates, |
5 | | regardless of where the call is billed or paid; |
6 | | (b) If the location in line (a) is not known, |
7 | | service address means the origination point of the |
8 | | signal of the telecommunications services first |
9 | | identified by either the seller's |
10 | | telecommunications system or in information |
11 | | received by the seller from its service provider |
12 | | where the system used to transport such signals is |
13 | | not that of the seller; and |
14 | | (c) If the locations in line (a) and line (b) |
15 | | are not known, the service address means the |
16 | | location of the customer's place of primary use. |
17 | | "Telecommunications service" means the electronic |
18 | | transmission, conveyance, or routing of voice, data, |
19 | | audio, video, or any other information or signals to a |
20 | | point, or between or among points. The term |
21 | | "telecommunications service" includes such |
22 | | transmission, conveyance, or routing in which computer |
23 | | processing applications are used to act on the form, |
24 | | code or protocol of the content for purposes of |
25 | | transmission, conveyance or routing without regard to |
26 | | whether such service is referred to as voice over |
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1 | | Internet protocol services or is classified by the |
2 | | Federal Communications Commission as enhanced or value |
3 | | added. "Telecommunications service" does not include: |
4 | | (a) Data processing and information services |
5 | | that allow data to be generated, acquired, stored, |
6 | | processed, or retrieved and delivered by an |
7 | | electronic transmission to a purchaser when such |
8 | | purchaser's primary purpose for the underlying |
9 | | transaction is the processed data or information; |
10 | | (b) Installation or maintenance of wiring or |
11 | | equipment on a customer's premises; |
12 | | (c) Tangible personal property; |
13 | | (d) Advertising, including but not limited to |
14 | | directory advertising. |
15 | | (e) Billing and collection services provided |
16 | | to third parties; |
17 | | (f) Internet access service; |
18 | | (g) Radio and television audio and video |
19 | | programming services, regardless of the medium, |
20 | | including the furnishing of transmission, |
21 | | conveyance and routing of such services by the |
22 | | programming service provider. Radio and television |
23 | | audio and video programming services shall include |
24 | | but not be limited to cable service as defined in |
25 | | 47 USC 522(6) and audio and video programming |
26 | | services delivered by commercial mobile radio |
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1 | | service providers, as defined in 47 CFR 20.3; |
2 | | (h) "Ancillary services"; or |
3 | | (i) Digital products "delivered |
4 | | electronically", including but not limited to |
5 | | software, music, video, reading materials or ring |
6 | | tones. |
7 | | "Vertical service" means an "ancillary service" |
8 | | that is offered in connection with one or more |
9 | | "telecommunications services", which offers advanced |
10 | | calling features that allow customers to identify |
11 | | callers and to manage multiple calls and call |
12 | | connections, including "conference bridging services". |
13 | | "Voice mail service" means an "ancillary service" |
14 | | that enables the customer to store, send or receive |
15 | | recorded messages. "Voice mail service" does not |
16 | | include any "vertical services" that the customer may |
17 | | be required to have in order to utilize the "voice mail |
18 | | service". |
19 | | (ii) Receipts from the sale of telecommunications |
20 | | service sold on an individual call-by-call basis are in |
21 | | this State if either of the following applies: |
22 | | (a) The call both originates and terminates in |
23 | | this State. |
24 | | (b) The call either originates or terminates |
25 | | in this State and the service address is located in |
26 | | this State. |
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1 | | (iii) Receipts from the sale of postpaid |
2 | | telecommunications service at retail are in this State |
3 | | if the origination point of the telecommunication |
4 | | signal, as first identified by the service provider's |
5 | | telecommunication system or as identified by |
6 | | information received by the seller from its service |
7 | | provider if the system used to transport |
8 | | telecommunication signals is not the seller's, is |
9 | | located in this State. |
10 | | (iv) Receipts from the sale of prepaid |
11 | | telecommunications service or prepaid mobile |
12 | | telecommunications service at retail are in this State |
13 | | if the purchaser obtains the prepaid card or similar |
14 | | means of conveyance at a location in this State. |
15 | | Receipts from recharging a prepaid telecommunications |
16 | | service or mobile telecommunications service is in |
17 | | this State if the purchaser's billing information |
18 | | indicates a location in this State. |
19 | | (v) Receipts from the sale of private |
20 | | communication services are in this State as follows: |
21 | | (a) 100% of receipts from charges imposed at |
22 | | each channel termination point in this State. |
23 | | (b) 100% of receipts from charges for the total |
24 | | channel mileage between each channel termination |
25 | | point in this State. |
26 | | (c) 50% of the total receipts from charges for |
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1 | | service segments when those segments are between 2 |
2 | | customer channel termination points, 1 of which is |
3 | | located in this State and the other is located |
4 | | outside of this State, which segments are |
5 | | separately charged. |
6 | | (d) The receipts from charges for service |
7 | | segments with a channel termination point located |
8 | | in this State and in two or more other states, and |
9 | | which segments are not separately billed, are in |
10 | | this State based on a percentage determined by |
11 | | dividing the number of customer channel |
12 | | termination points in this State by the total |
13 | | number of customer channel termination points. |
14 | | (vi) Receipts from charges for ancillary services |
15 | | for telecommunications service sold to customers at |
16 | | retail are in this State if the customer's primary |
17 | | place of use of telecommunications services associated |
18 | | with those ancillary services is in this State. If the |
19 | | seller of those ancillary services cannot determine |
20 | | where the associated telecommunications are located, |
21 | | then the ancillary services shall be based on the |
22 | | location of the purchaser. |
23 | | (vii) Receipts to access a carrier's network or |
24 | | from the sale of telecommunication services or |
25 | | ancillary services for resale are in this State as |
26 | | follows: |
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1 | | (a) 100% of the receipts from access fees |
2 | | attributable to intrastate telecommunications |
3 | | service that both originates and terminates in |
4 | | this State. |
5 | | (b) 50% of the receipts from access fees |
6 | | attributable to interstate telecommunications |
7 | | service if the interstate call either originates |
8 | | or terminates in this State. |
9 | | (c) 100% of the receipts from interstate end |
10 | | user access line charges, if the customer's |
11 | | service address is in this State. As used in this |
12 | | subdivision, "interstate end user access line |
13 | | charges" includes, but is not limited to, the |
14 | | surcharge approved by the federal communications |
15 | | commission and levied pursuant to 47 CFR 69. |
16 | | (d) Gross receipts from sales of |
17 | | telecommunication services or from ancillary |
18 | | services for telecommunications services sold to |
19 | | other telecommunication service providers for |
20 | | resale shall be sourced to this State using the |
21 | | apportionment concepts used for non-resale |
22 | | receipts of telecommunications services if the |
23 | | information is readily available to make that |
24 | | determination. If the information is not readily |
25 | | available, then the taxpayer may use any other |
26 | | reasonable and consistent method. |
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1 | | (B-7) For taxable years ending on or after December 31, |
2 | | 2008, receipts from the sale of broadcasting services are |
3 | | in this State if the broadcasting services are received in |
4 | | this State. For purposes of this paragraph (B-7), the |
5 | | following terms have the following meanings: |
6 | | "Advertising revenue" means consideration received |
7 | | by the taxpayer in exchange for broadcasting services |
8 | | or allowing the broadcasting of commercials or |
9 | | announcements in connection with the broadcasting of |
10 | | film or radio programming, from sponsorships of the |
11 | | programming, or from product placements in the |
12 | | programming. |
13 | | "Audience factor" means the ratio that the |
14 | | audience or subscribers located in this State of a |
15 | | station, a network, or a cable system bears to the |
16 | | total audience or total subscribers for that station, |
17 | | network, or cable system. The audience factor for film |
18 | | or radio programming shall be determined by reference |
19 | | to the books and records of the taxpayer or by |
20 | | reference to published rating statistics provided the |
21 | | method used by the taxpayer is consistently used from |
22 | | year to year for this purpose and fairly represents the |
23 | | taxpayer's activity in this State. |
24 | | "Broadcast" or "broadcasting" or "broadcasting |
25 | | services" means the transmission or provision of film |
26 | | or radio programming, whether through the public |
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1 | | airwaves, by cable, by direct or indirect satellite |
2 | | transmission, or by any other means of communication, |
3 | | either through a station, a network, or a cable system. |
4 | | "Film" or "film programming" means the broadcast |
5 | | on television of any and all performances, events, or |
6 | | productions, including but not limited to news, |
7 | | sporting events, plays, stories, or other literary, |
8 | | commercial, educational, or artistic works, either |
9 | | live or through the use of video tape, disc, or any |
10 | | other type of format or medium. Each episode of a |
11 | | series of films produced for television shall |
12 | | constitute separate "film" notwithstanding that the |
13 | | series relates to the same principal subject and is |
14 | | produced during one or more tax periods. |
15 | | "Radio" or "radio programming" means the broadcast |
16 | | on radio of any and all performances, events, or |
17 | | productions, including but not limited to news, |
18 | | sporting events, plays, stories, or other literary, |
19 | | commercial, educational, or artistic works, either |
20 | | live or through the use of an audio tape, disc, or any |
21 | | other format or medium. Each episode in a series of |
22 | | radio programming produced for radio broadcast shall |
23 | | constitute a separate "radio programming" |
24 | | notwithstanding that the series relates to the same |
25 | | principal subject and is produced during one or more |
26 | | tax periods. |
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1 | | (i) In the case of advertising revenue from |
2 | | broadcasting, the customer is the advertiser and |
3 | | the service is received in this State if the |
4 | | commercial domicile of the advertiser is in this |
5 | | State. |
6 | | (ii) In the case where film or radio |
7 | | programming is broadcast by a station, a network, |
8 | | or a cable system for a fee or other remuneration |
9 | | received from the recipient of the broadcast, the |
10 | | portion of the service that is received in this |
11 | | State is measured by the portion of the recipients |
12 | | of the broadcast located in this State. |
13 | | Accordingly, the fee or other remuneration for |
14 | | such service that is included in the Illinois |
15 | | numerator of the sales factor is the total of those |
16 | | fees or other remuneration received from |
17 | | recipients in Illinois. For purposes of this |
18 | | paragraph, a taxpayer may determine the location |
19 | | of the recipients of its broadcast using the |
20 | | address of the recipient shown in its contracts |
21 | | with the recipient or using the billing address of |
22 | | the recipient in the taxpayer's records. |
23 | | (iii) In the case where film or radio |
24 | | programming is broadcast by a station, a network, |
25 | | or a cable system for a fee or other remuneration |
26 | | from the person providing the programming, the |
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1 | | portion of the broadcast service that is received |
2 | | by such station, network, or cable system in this |
3 | | State is measured by the portion of recipients of |
4 | | the broadcast located in this State. Accordingly, |
5 | | the amount of revenue related to such an |
6 | | arrangement that is included in the Illinois |
7 | | numerator of the sales factor is the total fee or |
8 | | other total remuneration from the person providing |
9 | | the programming related to that broadcast |
10 | | multiplied by the Illinois audience factor for |
11 | | that broadcast. |
12 | | (iv) In the case where film or radio |
13 | | programming is provided by a taxpayer that is a |
14 | | network or station to a customer for broadcast in |
15 | | exchange for a fee or other remuneration from that |
16 | | customer the broadcasting service is received at |
17 | | the location of the office of the customer from |
18 | | which the services were ordered in the regular |
19 | | course of the customer's trade or business. |
20 | | Accordingly, in such a case the revenue derived by |
21 | | the taxpayer that is included in the taxpayer's |
22 | | Illinois numerator of the sales factor is the |
23 | | revenue from such customers who receive the |
24 | | broadcasting service in Illinois. |
25 | | (v) In the case where film or radio programming |
26 | | is provided by a taxpayer that is not a network or |
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1 | | station to another person for broadcasting in |
2 | | exchange for a fee or other remuneration from that |
3 | | person, the broadcasting service is received at |
4 | | the location of the office of the customer from |
5 | | which the services were ordered in the regular |
6 | | course of the customer's trade or business. |
7 | | Accordingly, in such a case the revenue derived by |
8 | | the taxpayer that is included in the taxpayer's |
9 | | Illinois numerator of the sales factor is the |
10 | | revenue from such customers who receive the |
11 | | broadcasting service in Illinois.
|
12 | | (C) For taxable years ending before December 31, 2008, |
13 | | sales, other than sales governed by paragraphs (B), (B-1), |
14 | | and (B-2), are in
this State if:
|
15 | | (i) The income-producing activity is performed in |
16 | | this State; or
|
17 | | (ii) The income-producing activity is performed |
18 | | both within and
without this State and a greater |
19 | | proportion of the income-producing
activity is |
20 | | performed within this State than without this State, |
21 | | based
on performance costs.
|
22 | | (C-5) For taxable years ending on or after December 31, |
23 | | 2008, sales, other than sales governed by paragraphs (B), |
24 | | (B-1), (B-2), (B-5), and (B-7), are in this State if any of |
25 | | the following criteria are met: |
26 | | (i) Sales from the sale or lease of real property |
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1 | | are in this State if the property is located in this |
2 | | State. |
3 | | (ii) Sales from the lease or rental of tangible |
4 | | personal property are in this State if the property is |
5 | | located in this State during the rental period. Sales |
6 | | from the lease or rental of tangible personal property |
7 | | that is characteristically moving property, including, |
8 | | but not limited to, motor vehicles, rolling stock, |
9 | | aircraft, vessels, or mobile equipment are in this |
10 | | State to the extent that the property is used in this |
11 | | State. |
12 | | (iii) In the case of interest, net gains (but not |
13 | | less than zero) and other items of income from |
14 | | intangible personal property, the sale is in this State |
15 | | if: |
16 | | (a) in the case of a taxpayer who is a dealer |
17 | | in the item of intangible personal property within |
18 | | the meaning of Section 475 of the Internal Revenue |
19 | | Code, the income or gain is received from a |
20 | | customer in this State. For purposes of this |
21 | | subparagraph, a customer is in this State if the |
22 | | customer is an individual, trust or estate who is a |
23 | | resident of this State and, for all other |
24 | | customers, if the customer's commercial domicile |
25 | | is in this State. Unless the dealer has actual |
26 | | knowledge of the residence or commercial domicile |
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1 | | of a customer during a taxable year, the customer |
2 | | shall be deemed to be a customer in this State if |
3 | | the billing address of the customer, as shown in |
4 | | the records of the dealer, is in this State; or |
5 | | (b) in all other cases, if the |
6 | | income-producing activity of the taxpayer is |
7 | | performed in this State or, if the |
8 | | income-producing activity of the taxpayer is |
9 | | performed both within and without this State, if a |
10 | | greater proportion of the income-producing |
11 | | activity of the taxpayer is performed within this |
12 | | State than in any other state, based on performance |
13 | | costs. |
14 | | (iv) Sales of services are in this State if the |
15 | | services are received in this State. For the purposes |
16 | | of this section, gross receipts from the performance of |
17 | | services provided to a corporation, partnership, or |
18 | | trust may only be attributed to a state where that |
19 | | corporation, partnership, or trust has a fixed place of |
20 | | business. If the state where the services are received |
21 | | is not readily determinable or is a state where the |
22 | | corporation, partnership, or trust receiving the |
23 | | service does not have a fixed place of business, the |
24 | | services shall be deemed to be received at the location |
25 | | of the office of the customer from which the services |
26 | | were ordered in the regular course of the customer's |
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1 | | trade or business. If the ordering office cannot be |
2 | | determined, the services shall be deemed to be received |
3 | | at the office of the customer to which the services are |
4 | | billed. If the taxpayer is not taxable in the state in |
5 | | which the services are received, the sale must be |
6 | | excluded from both the numerator and the denominator of |
7 | | the sales factor. The Department shall adopt rules |
8 | | prescribing where specific types of service are |
9 | | received, including, but not limited to, publishing, |
10 | | and utility service.
|
11 | | (D) For taxable years ending on or after December 31, |
12 | | 1995, the following
items of income shall not be included |
13 | | in the numerator or denominator of the
sales factor: |
14 | | dividends; amounts included under Section 78 of the |
15 | | Internal
Revenue Code; and Subpart F income as defined in |
16 | | Section 952 of the Internal
Revenue Code.
No inference |
17 | | shall be drawn from the enactment of this paragraph (D) in
|
18 | | construing this Section for taxable years ending before |
19 | | December 31, 1995.
|
20 | | (E) Paragraphs (B-1) and (B-2) shall apply to tax years |
21 | | ending on or
after December 31, 1999, provided that a |
22 | | taxpayer may elect to apply the
provisions of these |
23 | | paragraphs to prior tax years. Such election shall be made
|
24 | | in the form and manner prescribed by the Department, shall |
25 | | be irrevocable, and
shall apply to all tax years; provided |
26 | | that, if a taxpayer's Illinois income
tax liability for any |
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1 | | tax year, as assessed under Section 903 prior to January
1, |
2 | | 1999, was computed in a manner contrary to the provisions |
3 | | of paragraphs
(B-1) or (B-2), no refund shall be payable to |
4 | | the taxpayer for that tax year to
the extent such refund is |
5 | | the result of applying the provisions of paragraph
(B-1) or |
6 | | (B-2) retroactively. In the case of a unitary business |
7 | | group, such
election shall apply to all members of such |
8 | | group for every tax year such group
is in existence, but |
9 | | shall not apply to any taxpayer for any period during
which |
10 | | that taxpayer is not a member of such group.
|
11 | | (b) Insurance companies.
|
12 | | (1) In general. Except as otherwise
provided by |
13 | | paragraph (2), business income of an insurance company for |
14 | | a
taxable year shall be apportioned to this State by |
15 | | multiplying such
income by a fraction, the numerator of |
16 | | which is the direct premiums
written for insurance upon |
17 | | property or risk in this State, and the
denominator of |
18 | | which is the direct premiums written for insurance upon
|
19 | | property or risk everywhere. For purposes of this |
20 | | subsection, the term
"direct premiums written" means the |
21 | | total amount of direct premiums
written, assessments and |
22 | | annuity considerations as reported for the
taxable year on |
23 | | the annual statement filed by the company with the
Illinois |
24 | | Director of Insurance in the form approved by the National
|
25 | | Convention of Insurance Commissioners
or such other form as |
26 | | may be
prescribed in lieu thereof.
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1 | | (2) Reinsurance. If the principal source of premiums |
2 | | written by an
insurance company consists of premiums for |
3 | | reinsurance accepted by it,
the business income of such |
4 | | company shall be apportioned to this State
by multiplying |
5 | | such income by a fraction, the numerator of which is the
|
6 | | sum of (i) direct premiums written for insurance upon |
7 | | property or risk
in this State, plus (ii) premiums written |
8 | | for reinsurance accepted in
respect of property or risk in |
9 | | this State, and the denominator of which
is the sum of |
10 | | (iii) direct premiums written for insurance upon property
|
11 | | or risk everywhere, plus (iv) premiums written for |
12 | | reinsurance accepted
in respect of property or risk |
13 | | everywhere. For taxable years ending before December 31, |
14 | | 2008, for purposes of this
paragraph, premiums written for |
15 | | reinsurance accepted in respect of
property or risk in this |
16 | | State, whether or not otherwise determinable,
may, at the |
17 | | election of the company, be determined on the basis of the
|
18 | | proportion which premiums written for reinsurance accepted |
19 | | from
companies commercially domiciled in Illinois bears to |
20 | | premiums written
for reinsurance accepted from all |
21 | | sources, or, alternatively, in the
proportion which the sum |
22 | | of the direct premiums written for insurance
upon property |
23 | | or risk in this State by each ceding company from which
|
24 | | reinsurance is accepted bears to the sum of the total |
25 | | direct premiums
written by each such ceding company for the |
26 | | taxable year. The election made by a company under this |
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1 | | paragraph for its first taxable year ending on or after |
2 | | December 31, 2011, shall be binding for that company for |
3 | | that taxable year and for all subsequent taxable years, and |
4 | | may be altered only with the written permission of the |
5 | | Department, which shall not be unreasonably withheld.
|
6 | | (c) Financial organizations.
|
7 | | (1) In general. For taxable years ending before |
8 | | December 31, 2008, business income of a financial
|
9 | | organization shall be apportioned to this State by |
10 | | multiplying such
income by a fraction, the numerator of |
11 | | which is its business income from
sources within this |
12 | | State, and the denominator of which is its business
income |
13 | | from all sources. For the purposes of this subsection, the
|
14 | | business income of a financial organization from sources |
15 | | within this
State is the sum of the amounts referred to in |
16 | | subparagraphs (A) through
(E) following, but excluding the |
17 | | adjusted income of an international banking
facility as |
18 | | determined in paragraph (2):
|
19 | | (A) Fees, commissions or other compensation for |
20 | | financial services
rendered within this State;
|
21 | | (B) Gross profits from trading in stocks, bonds or |
22 | | other securities
managed within this State;
|
23 | | (C) Dividends, and interest from Illinois |
24 | | customers, which are received
within this State;
|
25 | | (D) Interest charged to customers at places of |
26 | | business maintained
within this State for carrying |
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1 | | debit balances of margin accounts,
without deduction |
2 | | of any costs incurred in carrying such accounts; and
|
3 | | (E) Any other gross income resulting from the |
4 | | operation as a
financial organization within this |
5 | | State. In computing the amounts
referred to in |
6 | | paragraphs (A) through (E) of this subsection, any |
7 | | amount
received by a member of an affiliated group |
8 | | (determined under Section
1504(a) of the Internal |
9 | | Revenue Code but without reference to whether
any such |
10 | | corporation is an "includible corporation" under |
11 | | Section
1504(b) of the Internal Revenue Code) from |
12 | | another member of such group
shall be included only to |
13 | | the extent such amount exceeds expenses of the
|
14 | | recipient directly related thereto.
|
15 | | (2) International Banking Facility. For taxable years |
16 | | ending before December 31, 2008:
|
17 | | (A) Adjusted Income. The adjusted income of an |
18 | | international banking
facility is its income reduced |
19 | | by the amount of the floor amount.
|
20 | | (B) Floor Amount. The floor amount shall be the |
21 | | amount, if any,
determined
by multiplying the income of |
22 | | the international banking facility by a fraction,
not |
23 | | greater than one, which is determined as follows:
|
24 | | (i) The numerator shall be:
|
25 | | The average aggregate, determined on a |
26 | | quarterly basis, of the
financial
organization's |
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1 | | loans to banks in foreign countries, to foreign |
2 | | domiciled
borrowers (except where secured |
3 | | primarily by real estate) and to foreign
|
4 | | governments and other foreign official |
5 | | institutions, as reported for its
branches, |
6 | | agencies and offices within the state on its |
7 | | "Consolidated Report
of Condition", Schedule A, |
8 | | Lines 2.c., 5.b., and 7.a., which was filed with
|
9 | | the Federal Deposit Insurance Corporation and |
10 | | other regulatory authorities,
for the year 1980, |
11 | | minus
|
12 | | The average aggregate, determined on a |
13 | | quarterly basis, of such loans
(other
than loans of |
14 | | an international banking facility), as reported by |
15 | | the financial
institution for its branches, |
16 | | agencies and offices within the state, on
the |
17 | | corresponding Schedule and lines of the |
18 | | Consolidated Report of Condition
for the current |
19 | | taxable year, provided, however, that in no case |
20 | | shall the
amount determined in this clause (the |
21 | | subtrahend) exceed the amount determined
in the |
22 | | preceding clause (the minuend); and
|
23 | | (ii) the denominator shall be the average |
24 | | aggregate, determined on a
quarterly basis, of the |
25 | | international banking facility's loans to banks in
|
26 | | foreign countries, to foreign domiciled borrowers |
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1 | | (except where secured
primarily by real estate) |
2 | | and to foreign governments and other foreign
|
3 | | official institutions, which were recorded in its |
4 | | financial accounts for
the current taxable year.
|
5 | | (C) Change to Consolidated Report of Condition and |
6 | | in Qualification.
In the event the Consolidated Report |
7 | | of Condition which is filed with the
Federal Deposit |
8 | | Insurance Corporation and other regulatory authorities |
9 | | is
altered so that the information required for |
10 | | determining the floor amount
is not found on Schedule |
11 | | A, lines 2.c., 5.b. and 7.a., the financial
institution |
12 | | shall notify the Department and the Department may, by
|
13 | | regulations or otherwise, prescribe or authorize the |
14 | | use of an alternative
source for such information. The |
15 | | financial institution shall also notify
the Department |
16 | | should its international banking facility fail to |
17 | | qualify as
such, in whole or in part, or should there |
18 | | be any amendment or change to
the Consolidated Report |
19 | | of Condition, as originally filed, to the extent
such |
20 | | amendment or change alters the information used in |
21 | | determining the floor
amount.
|
22 | | (3) For taxable years ending on or after December 31, |
23 | | 2008, the business income of a financial organization shall |
24 | | be apportioned to this State by multiplying such income by |
25 | | a fraction, the numerator of which is its gross receipts |
26 | | from sources in this State or otherwise attributable to |
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1 | | this State's marketplace and the denominator of which is |
2 | | its gross receipts everywhere during the taxable year. |
3 | | "Gross receipts" for purposes of this subparagraph (3) |
4 | | means gross income, including net taxable gain on |
5 | | disposition of assets, including securities and money |
6 | | market instruments, when derived from transactions and |
7 | | activities in the regular course of the financial |
8 | | organization's trade or business. The following examples |
9 | | are illustrative:
|
10 | | (i) Receipts from the lease or rental of real or |
11 | | tangible personal property are in this State if the |
12 | | property is located in this State during the rental |
13 | | period. Receipts from the lease or rental of tangible |
14 | | personal property that is characteristically moving |
15 | | property, including, but not limited to, motor |
16 | | vehicles, rolling stock, aircraft, vessels, or mobile |
17 | | equipment are from sources in this State to the extent |
18 | | that the property is used in this State. |
19 | | (ii) Interest income, commissions, fees, gains on |
20 | | disposition, and other receipts from assets in the |
21 | | nature of loans that are secured primarily by real |
22 | | estate or tangible personal property are from sources |
23 | | in this State if the security is located in this State. |
24 | | (iii) Interest income, commissions, fees, gains on |
25 | | disposition, and other receipts from consumer loans |
26 | | that are not secured by real or tangible personal |
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1 | | property are from sources in this State if the debtor |
2 | | is a resident of this State. |
3 | | (iv) Interest income, commissions, fees, gains on |
4 | | disposition, and other receipts from commercial loans |
5 | | and installment obligations that are not secured by |
6 | | real or tangible personal property are from sources in |
7 | | this State if the proceeds of the loan are to be |
8 | | applied in this State. If it cannot be determined where |
9 | | the funds are to be applied, the income and receipts |
10 | | are from sources in this State if the office of the |
11 | | borrower from which the loan was negotiated in the |
12 | | regular course of business is located in this State. If |
13 | | the location of this office cannot be determined, the |
14 | | income and receipts shall be excluded from the |
15 | | numerator and denominator of the sales factor.
|
16 | | (v) Interest income, fees, gains on disposition, |
17 | | service charges, merchant discount income, and other |
18 | | receipts from credit card receivables are from sources |
19 | | in this State if the card charges are regularly billed |
20 | | to a customer in this State. |
21 | | (vi) Receipts from the performance of services, |
22 | | including, but not limited to, fiduciary, advisory, |
23 | | and brokerage services, are in this State if the |
24 | | services are received in this State within the meaning |
25 | | of subparagraph (a)(3)(C-5)(iv) of this Section. |
26 | | (vii) Receipts from the issuance of travelers |
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1 | | checks and money orders are from sources in this State |
2 | | if the checks and money orders are issued from a |
3 | | location within this State. |
4 | | (viii) Receipts from investment assets and |
5 | | activities and trading assets and activities are |
6 | | included in the receipts factor as follows: |
7 | | (1) Interest, dividends, net gains (but not |
8 | | less than zero) and other income from investment |
9 | | assets and activities from trading assets and |
10 | | activities shall be included in the receipts |
11 | | factor. Investment assets and activities and |
12 | | trading assets and activities include but are not |
13 | | limited to: investment securities; trading account |
14 | | assets; federal funds; securities purchased and |
15 | | sold under agreements to resell or repurchase; |
16 | | options; futures contracts; forward contracts; |
17 | | notional principal contracts such as swaps; |
18 | | equities; and foreign currency transactions. With |
19 | | respect to the investment and trading assets and |
20 | | activities described in subparagraphs (A) and (B) |
21 | | of this paragraph, the receipts factor shall |
22 | | include the amounts described in such |
23 | | subparagraphs. |
24 | | (A) The receipts factor shall include the |
25 | | amount by which interest from federal funds |
26 | | sold and securities purchased under resale |
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1 | | agreements exceeds interest expense on federal |
2 | | funds purchased and securities sold under |
3 | | repurchase agreements. |
4 | | (B) The receipts factor shall include the |
5 | | amount by which interest, dividends, gains and |
6 | | other income from trading assets and |
7 | | activities, including but not limited to |
8 | | assets and activities in the matched book, in |
9 | | the arbitrage book, and foreign currency |
10 | | transactions, exceed amounts paid in lieu of |
11 | | interest, amounts paid in lieu of dividends, |
12 | | and losses from such assets and activities. |
13 | | (2) The numerator of the receipts factor |
14 | | includes interest, dividends, net gains (but not |
15 | | less than zero), and other income from investment |
16 | | assets and activities and from trading assets and |
17 | | activities described in paragraph (1) of this |
18 | | subsection that are attributable to this State. |
19 | | (A) The amount of interest, dividends, net |
20 | | gains (but not less than zero), and other |
21 | | income from investment assets and activities |
22 | | in the investment account to be attributed to |
23 | | this State and included in the numerator is |
24 | | determined by multiplying all such income from |
25 | | such assets and activities by a fraction, the |
26 | | numerator of which is the gross income from |
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1 | | such assets and activities which are properly |
2 | | assigned to a fixed place of business of the |
3 | | taxpayer within this State and the denominator |
4 | | of which is the gross income from all such |
5 | | assets and activities. |
6 | | (B) The amount of interest from federal |
7 | | funds sold and purchased and from securities |
8 | | purchased under resale agreements and |
9 | | securities sold under repurchase agreements |
10 | | attributable to this State and included in the |
11 | | numerator is determined by multiplying the |
12 | | amount described in subparagraph (A) of |
13 | | paragraph (1) of this subsection from such |
14 | | funds and such securities by a fraction, the |
15 | | numerator of which is the gross income from |
16 | | such funds and such securities which are |
17 | | properly assigned to a fixed place of business |
18 | | of the taxpayer within this State and the |
19 | | denominator of which is the gross income from |
20 | | all such funds and such securities. |
21 | | (C) The amount of interest, dividends, |
22 | | gains, and other income from trading assets and |
23 | | activities, including but not limited to |
24 | | assets and activities in the matched book, in |
25 | | the arbitrage book and foreign currency |
26 | | transactions (but excluding amounts described |
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1 | | in subparagraphs (A) or (B) of this paragraph), |
2 | | attributable to this State and included in the |
3 | | numerator is determined by multiplying the |
4 | | amount described in subparagraph (B) of |
5 | | paragraph (1) of this subsection by a fraction, |
6 | | the numerator of which is the gross income from |
7 | | such trading assets and activities which are |
8 | | properly assigned to a fixed place of business |
9 | | of the taxpayer within this State and the |
10 | | denominator of which is the gross income from |
11 | | all such assets and activities. |
12 | | (D) Properly assigned, for purposes of |
13 | | this paragraph (2) of this subsection, means |
14 | | the investment or trading asset or activity is |
15 | | assigned to the fixed place of business with |
16 | | which it has a preponderance of substantive |
17 | | contacts. An investment or trading asset or |
18 | | activity assigned by the taxpayer to a fixed |
19 | | place of business without the State shall be |
20 | | presumed to have been properly assigned if: |
21 | | (i) the taxpayer has assigned, in the |
22 | | regular course of its business, such asset |
23 | | or activity on its records to a fixed place |
24 | | of business consistent with federal or |
25 | | state regulatory requirements; |
26 | | (ii) such assignment on its records is |
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1 | | based upon substantive contacts of the |
2 | | asset or activity to such fixed place of |
3 | | business; and |
4 | | (iii) the taxpayer uses such records |
5 | | reflecting assignment of such assets or |
6 | | activities for the filing of all state and |
7 | | local tax returns for which an assignment |
8 | | of such assets or activities to a fixed |
9 | | place of business is required. |
10 | | (E) The presumption of proper assignment |
11 | | of an investment or trading asset or activity |
12 | | provided in subparagraph (D) of paragraph (2) |
13 | | of this subsection may be rebutted upon a |
14 | | showing by the Department, supported by a |
15 | | preponderance of the evidence, that the |
16 | | preponderance of substantive contacts |
17 | | regarding such asset or activity did not occur |
18 | | at the fixed place of business to which it was |
19 | | assigned on the taxpayer's records. If the |
20 | | fixed place of business that has a |
21 | | preponderance of substantive contacts cannot |
22 | | be determined for an investment or trading |
23 | | asset or activity to which the presumption in |
24 | | subparagraph (D) of paragraph (2) of this |
25 | | subsection does not apply or with respect to |
26 | | which that presumption has been rebutted, that |
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1 | | asset or activity is properly assigned to the |
2 | | state in which the taxpayer's commercial |
3 | | domicile is located. For purposes of this |
4 | | subparagraph (E), it shall be presumed, |
5 | | subject to rebuttal, that taxpayer's |
6 | | commercial domicile is in the state of the |
7 | | United States or the District of Columbia to |
8 | | which the greatest number of employees are |
9 | | regularly connected with the management of the |
10 | | investment or trading income or out of which |
11 | | they are working, irrespective of where the |
12 | | services of such employees are performed, as of |
13 | | the last day of the taxable year.
|
14 | | (4) (Blank). |
15 | | (5) (Blank). |
16 | | (d) Transportation services. For taxable years ending |
17 | | before December 31, 2008, business income derived from |
18 | | furnishing
transportation services shall be apportioned to |
19 | | this State in accordance
with paragraphs (1) and (2):
|
20 | | (1) Such business income (other than that derived from
|
21 | | transportation by pipeline) shall be apportioned to this |
22 | | State by
multiplying such income by a fraction, the |
23 | | numerator of which is the
revenue miles of the person in |
24 | | this State, and the denominator of which
is the revenue |
25 | | miles of the person everywhere. For purposes of this
|
26 | | paragraph, a revenue mile is the transportation of 1 |
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1 | | passenger or 1 net
ton of freight the distance of 1 mile |
2 | | for a consideration. Where a
person is engaged in the |
3 | | transportation of both passengers and freight,
the |
4 | | fraction above referred to shall be determined by means of |
5 | | an
average of the passenger revenue mile fraction and the |
6 | | freight revenue
mile fraction, weighted to reflect the |
7 | | person's
|
8 | | (A) relative railway operating income from total |
9 | | passenger and total
freight service, as reported to the |
10 | | Interstate Commerce Commission, in
the case of |
11 | | transportation by railroad, and
|
12 | | (B) relative gross receipts from passenger and |
13 | | freight
transportation, in case of transportation |
14 | | other than by railroad.
|
15 | | (2) Such business income derived from transportation |
16 | | by pipeline
shall be apportioned to this State by |
17 | | multiplying such income by a
fraction, the numerator of |
18 | | which is the revenue miles of the person in
this State, and |
19 | | the denominator of which is the revenue miles of the
person |
20 | | everywhere. For the purposes of this paragraph, a revenue |
21 | | mile is
the transportation by pipeline of 1 barrel of oil, |
22 | | 1,000 cubic feet of
gas, or of any specified quantity of |
23 | | any other substance, the distance
of 1 mile for a |
24 | | consideration.
|
25 | | (3) For taxable years ending on or after December 31, |
26 | | 2008, business income derived from providing |
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1 | | transportation services other than airline services shall |
2 | | be apportioned to this State by using a fraction, (a) the |
3 | | numerator of which shall be (i) all receipts from any |
4 | | movement or shipment of people, goods, mail, oil, gas, or |
5 | | any other substance (other than by airline) that both |
6 | | originates and terminates in this State, plus (ii) that |
7 | | portion of the person's gross receipts from movements or |
8 | | shipments of people, goods, mail, oil, gas, or any other |
9 | | substance (other than by airline) that originates in one |
10 | | state or jurisdiction and terminates in another state or |
11 | | jurisdiction, that is determined by the ratio that the |
12 | | miles traveled in this State bears to total miles |
13 | | everywhere and (b) the denominator of which shall be all |
14 | | revenue derived from the movement or shipment of people, |
15 | | goods, mail, oil, gas, or any other substance (other than |
16 | | by airline). Where a taxpayer is engaged in the |
17 | | transportation of both passengers and freight, the |
18 | | fraction above referred to shall first be determined |
19 | | separately for passenger miles and freight miles. Then an |
20 | | average of the passenger miles fraction and the freight |
21 | | miles fraction shall be weighted to reflect the taxpayer's: |
22 | | (A) relative railway operating income from total |
23 | | passenger and total freight service, as reported to the |
24 | | Surface Transportation Board, in the case of |
25 | | transportation by railroad; and
|
26 | | (B) relative gross receipts from passenger and |
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1 | | freight transportation, in case of transportation |
2 | | other than by railroad.
|
3 | | (4) For taxable years ending on or after December 31, |
4 | | 2008, business income derived from furnishing airline
|
5 | | transportation services shall be apportioned to this State |
6 | | by
multiplying such income by a fraction, the numerator of |
7 | | which is the
revenue miles of the person in this State, and |
8 | | the denominator of which
is the revenue miles of the person |
9 | | everywhere. For purposes of this
paragraph, a revenue mile |
10 | | is the transportation of one passenger or one net
ton of |
11 | | freight the distance of one mile for a consideration. If a
|
12 | | person is engaged in the transportation of both passengers |
13 | | and freight,
the fraction above referred to shall be |
14 | | determined by means of an
average of the passenger revenue |
15 | | mile fraction and the freight revenue
mile fraction, |
16 | | weighted to reflect the person's relative gross receipts |
17 | | from passenger and freight
airline transportation.
|
18 | | (e) Combined apportionment. Where 2 or more persons are |
19 | | engaged in
a unitary business as described in subsection |
20 | | (a)(27) of
Section 1501,
a part of which is conducted in this |
21 | | State by one or more members of the
group, the business income |
22 | | attributable to this State by any such member
or members shall |
23 | | be apportioned by means of the combined apportionment method.
|
24 | | (f) Alternative allocation. If the allocation and |
25 | | apportionment
provisions of subsections (a) through (e) and of |
26 | | subsection (h) do not
fairly represent the
extent of a person's |
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1 | | business activity in this State, the person may
petition for, |
2 | | or the Director may, without a petition, permit or require, in |
3 | | respect of all or any part
of the person's business activity, |
4 | | if reasonable:
|
5 | | (1) Separate accounting;
|
6 | | (2) The exclusion of any one or more factors;
|
7 | | (3) The inclusion of one or more additional factors |
8 | | which will
fairly represent the person's business |
9 | | activities in this State; or
|
10 | | (4) The employment of any other method to effectuate an |
11 | | equitable
allocation and apportionment of the person's |
12 | | business income.
|
13 | | (g) Cross reference. For allocation of business income by |
14 | | residents,
see Section 301(a).
|
15 | | (h) For tax years ending on or after December 31, 1998, the |
16 | | apportionment
factor of persons who apportion their business |
17 | | income to this State under
subsection (a) shall be equal to:
|
18 | | (1) for tax years ending on or after December 31, 1998 |
19 | | and before December
31, 1999, 16 2/3% of the property |
20 | | factor plus 16 2/3% of the payroll factor
plus
66 2/3% of |
21 | | the sales factor;
|
22 | | (2) for tax years ending on or after December 31, 1999 |
23 | | and before December
31,
2000, 8 1/3% of the property factor |
24 | | plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales |
25 | | factor;
|
26 | | (3) for tax years ending on or after December 31, 2000, |
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1 | | the sales factor.
|
2 | | If, in any tax year ending on or after December 31, 1998 and |
3 | | before December
31, 2000, the denominator of the payroll, |
4 | | property, or sales factor is zero,
the apportionment
factor |
5 | | computed in paragraph (1) or (2) of this subsection for that |
6 | | year shall
be divided by an amount equal to 100% minus the |
7 | | percentage weight given to each
factor whose denominator is |
8 | | equal to zero.
|
9 | | (Source: P.A. 95-233, eff. 8-16-07; 95-707, eff. 1-11-08; |
10 | | 96-763, eff. 8-25-09.)
|
11 | | (35 ILCS 5/502) (from Ch. 120, par. 5-502)
|
12 | | Sec. 502. Returns and notices.
|
13 | | (a) In general. A return with respect to the taxes imposed |
14 | | by this
Act shall be made by every person for any taxable year:
|
15 | | (1) for which such person is liable for a tax imposed |
16 | | by this Act,
or
|
17 | | (2) in the case of a resident or in the case of a |
18 | | corporation which
is qualified to do business in this |
19 | | State, for which such person is
required to make a federal |
20 | | income tax return, regardless of whether such
person is |
21 | | liable for a tax imposed by this Act. However, this |
22 | | paragraph
shall not require a resident to make a return if |
23 | | such person has
an
Illinois base income of the basic amount |
24 | | in Section 204(b) or
less and is either claimed as a |
25 | | dependent on
another person's tax return under the Internal |
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1 | | Revenue Code of 1986 , or is
claimed as a dependent on |
2 | | another person's tax return under this Act.
|
3 | | Notwithstanding the provisions of paragraph (1), a |
4 | | nonresident (other than, for taxable years ending on or after |
5 | | December 31, 2011, a nonresident required to withhold tax under |
6 | | Section 709.5) whose Illinois income tax liability under |
7 | | subsections (a), (b), (c), and (d) of Section 201 of this Act |
8 | | is paid in full after taking into account the credits allowed |
9 | | under subsection (f) of this Section or allowed under Section |
10 | | 709.5 of this Act shall not be required to file a return under |
11 | | this subsection (a).
|
12 | | (b) Fiduciaries and receivers.
|
13 | | (1) Decedents. If an individual is deceased, any return |
14 | | or notice
required of such individual under this Act shall |
15 | | be made by his
executor, administrator, or other person |
16 | | charged with the property of
such decedent.
|
17 | | (2) Individuals under a disability. If an individual is |
18 | | unable
to make a return or notice required under this Act, |
19 | | the return or notice
required of such individual shall be |
20 | | made by his duly authorized agent,
guardian, fiduciary or |
21 | | other person charged with the care
of the person or |
22 | | property of such individual.
|
23 | | (3) Estates and trusts. Returns or notices required of |
24 | | an estate
or a trust shall be made by the fiduciary |
25 | | thereof.
|
26 | | (4) Receivers, trustees and assignees for |
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1 | | corporations. In a
case where a receiver, trustee in |
2 | | bankruptcy, or assignee, by order of a
court of competent |
3 | | jurisdiction, by operation of law, or otherwise, has
|
4 | | possession of or holds title to all or substantially all |
5 | | the property or
business of a corporation, whether or not |
6 | | such property or business is
being operated, such receiver, |
7 | | trustee, or assignee shall make the
returns and notices |
8 | | required of such corporation in the same manner and
form as |
9 | | corporations are required to make such returns and notices.
|
10 | | (c) Joint returns by husband and wife.
|
11 | | (1) Except as provided in paragraph (3): |
12 | | (A) if a husband and wife file a
joint federal |
13 | | income tax return for a taxable year ending before |
14 | | December 31, 2009, they shall file a joint
return under |
15 | | this Act for such taxable year and their liabilities |
16 | | shall be
joint and several; |
17 | | (B) if a husband and wife file a joint federal |
18 | | income tax return for a taxable year ending on or after |
19 | | December 31, 2009, they may elect to file separate |
20 | | returns under this Act for such taxable year. The |
21 | | election under this paragraph must be made on or before |
22 | | the due date (including extensions) of the return and, |
23 | | once made, shall be irrevocable. If no election is |
24 | | timely made under this paragraph for a taxable year: |
25 | | (i) the couple must file a joint return under |
26 | | this Act for such taxable year, |
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1 | | (ii) their liabilities shall be joint and |
2 | | several, and |
3 | | (iii) any overpayment for that taxable year |
4 | | may be withheld under Section 909 of this Act or |
5 | | under Section 2505-275 of the Civil Administrative |
6 | | Code of Illinois and applied against a debt of |
7 | | either spouse without regard to the amount of the |
8 | | overpayment attributable to the other spouse; and |
9 | | (C) if the federal income tax liability of either |
10 | | spouse is
determined on a separate federal income tax |
11 | | return, they shall file separate
returns under this |
12 | | Act.
|
13 | | (2) If neither spouse is required to file a federal |
14 | | income tax
return and either or both are required to file a |
15 | | return under this Act,
they may elect to file separate or |
16 | | joint returns and pursuant to such
election their |
17 | | liabilities shall be separate or joint and several.
|
18 | | (3) If either husband or wife is a resident and the |
19 | | other is a
nonresident, they shall file separate returns in |
20 | | this State on such
forms as may be required by the |
21 | | Department in which event their tax
liabilities shall be |
22 | | separate; but if they file a joint federal income tax |
23 | | return for a taxable year, they may elect to determine |
24 | | their
joint net income and file a joint return for that |
25 | | taxable year under the provisions of paragraph (1) of this |
26 | | subsection as if both were residents and
in such case, |
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1 | | their liabilities shall be joint and several.
|
2 | | (4) Innocent spouses.
|
3 | | (A) However, for tax liabilities arising and paid |
4 | | prior to August 13,
1999, an innocent spouse shall be |
5 | | relieved of
liability for tax
(including interest and |
6 | | penalties) for any taxable year for which a joint
|
7 | | return has been made, upon submission of proof that the |
8 | | Internal Revenue
Service has made a determination |
9 | | under Section 6013(e) of the Internal
Revenue Code, for |
10 | | the same taxable year, which determination relieved |
11 | | the
spouse from liability for federal income taxes.
If |
12 | | there is no federal income tax liability at issue for |
13 | | the
same taxable year, the Department shall rely on the |
14 | | provisions of Section
6013(e) to determine whether the |
15 | | person requesting innocent spouse abatement of
tax, |
16 | | penalty, and interest is entitled to that relief.
|
17 | | (B) For tax liabilities arising on and after August |
18 | | 13, 1999 or which arose prior to that date, but remain |
19 | | unpaid as of that date, if
an individual
who filed a |
20 | | joint return for any taxable year has made an election |
21 | | under this
paragraph, the individual's liability for |
22 | | any tax shown on the joint return
shall not exceed the |
23 | | individual's separate return amount and the |
24 | | individual's
liability for any deficiency assessed for |
25 | | that taxable year shall not exceed
the portion of the |
26 | | deficiency properly allocable to the individual. For
|
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1 | | purposes of this paragraph:
|
2 | | (i) An election properly made pursuant to |
3 | | Section 6015 of the Internal
Revenue Code shall |
4 | | constitute an election under this paragraph, |
5 | | provided that
the election shall not be effective |
6 | | until the individual has notified the
Department |
7 | | of the election in the form and manner prescribed |
8 | | by the Department.
|
9 | | (ii) If no election has been made under Section |
10 | | 6015, the individual
may make an election under |
11 | | this paragraph in the form and manner prescribed by
|
12 | | the Department, provided that no election may be |
13 | | made if the Department finds
that assets were |
14 | | transferred
between individuals filing a joint |
15 | | return as part of a scheme by such
individuals to |
16 | | avoid payment of Illinois income tax and the |
17 | | election shall not
eliminate the individual's |
18 | | liability for any portion of a deficiency
|
19 | | attributable to an error on the return of which the |
20 | | individual had actual
knowledge as of the date of |
21 | | filing.
|
22 | | (iii) In determining the separate return |
23 | | amount or portion of any
deficiency attributable |
24 | | to an individual, the Department shall follow the
|
25 | | provisions in subsections (c) and (d) of Section |
26 | | 6015 of the Internal Revenue Code.
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1 | | (iv) In determining the validity of an |
2 | | individual's election under
subparagraph (ii) and |
3 | | in determining an electing individual's separate |
4 | | return
amount or portion of any deficiency under |
5 | | subparagraph (iii), any determination
made by the |
6 | | Secretary of the Treasury, by the United States Tax |
7 | | Court on
petition for review of a determination by |
8 | | the Secretary of the Treasury, or on
appeal from |
9 | | the United States Tax Court under Section 6015 of
|
10 | | the Internal
Revenue Code regarding criteria for |
11 | | eligibility or under subsection (d) of
Section |
12 | | 6015
of the Internal Revenue Code regarding the |
13 | | allocation of any item of income,
deduction, |
14 | | payment, or credit between an individual making |
15 | | the federal election
and that individual's spouse |
16 | | shall be conclusively presumed to be correct.
With |
17 | | respect to any item that is not the subject of a |
18 | | determination by the
Secretary of the Treasury or |
19 | | the federal courts, in any proceeding
involving |
20 | | this subsection, the
individual making the |
21 | | election shall have the burden of proof with |
22 | | respect to
any item except that the Department |
23 | | shall have the burden of proof with respect
to |
24 | | items in subdivision (ii).
|
25 | | (v) Any election made by an individual under |
26 | | this subsection shall
apply to all years for which |
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1 | | that individual and the spouse named in the
|
2 | | election have filed a joint return.
|
3 | | (vi) After receiving a notice that the federal |
4 | | election has been made
or after receiving an |
5 | | election under subdivision (ii), the Department |
6 | | shall
take no collection action against the |
7 | | electing individual for any liability
arising from |
8 | | a joint return covered by the election until the |
9 | | Department has
notified the electing individual in |
10 | | writing that the election is invalid or of
the |
11 | | portion of the liability the Department has |
12 | | allocated to the electing
individual. Within 60 |
13 | | days (150 days if the individual is outside the |
14 | | United
States) after the issuance of such |
15 | | notification, the individual may file a
written |
16 | | protest of the denial of the election or of the |
17 | | Department's
determination of the liability |
18 | | allocated to him or her and shall be granted a
|
19 | | hearing within the Department under the provisions |
20 | | of Section 908. If a
protest is filed, the |
21 | | Department shall take no collection action against |
22 | | the
electing individual until the decision |
23 | | regarding the protest has become final
under |
24 | | subsection (d) of Section 908 or, if |
25 | | administrative review of the
Department's decision
|
26 | | is requested under Section 1201, until the |
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1 | | decision of the court becomes
final.
|
2 | | (d) Partnerships. Every partnership having any base income
|
3 | | allocable to this State in accordance with section 305(c) shall |
4 | | retain
information concerning all items of income, gain, loss |
5 | | and
deduction; the names and addresses of all of the partners, |
6 | | or names and
addresses of members of a limited liability |
7 | | company, or other
persons who would be entitled to share in the |
8 | | base income of the
partnership if distributed; the amount of |
9 | | the distributive share of
each; and such other pertinent |
10 | | information as the Department may by
forms or regulations |
11 | | prescribe. The partnership shall make that information
|
12 | | available to the Department when requested by the Department.
|
13 | | (e) For taxable years ending on or after December 31, 1985, |
14 | | and before
December 31, 1993, taxpayers
that are corporations |
15 | | (other than Subchapter S corporations) having the
same taxable |
16 | | year and that are members of the same unitary business group
|
17 | | may elect to be treated as one taxpayer for purposes of any |
18 | | original return,
amended return which includes the same |
19 | | taxpayers of the unitary group which
joined in the election to |
20 | | file the original return, extension, claim for
refund, |
21 | | assessment, collection and payment and determination of the
|
22 | | group's tax liability under this Act. This subsection (e) does |
23 | | not permit the
election to be made for some, but not all, of |
24 | | the purposes enumerated above.
For taxable years ending on or |
25 | | after December 31, 1987, corporate members
(other than |
26 | | Subchapter S corporations) of the same unitary business group
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1 | | making this subsection (e) election are not required to have |
2 | | the same taxable
year.
|
3 | | For taxable years ending on or after December 31, 1993, |
4 | | taxpayers that are
corporations (other than Subchapter S |
5 | | corporations) and that are members of
the same unitary business |
6 | | group shall be treated as one taxpayer for purposes
of any |
7 | | original return, amended return which includes the same |
8 | | taxpayers of the
unitary group which joined in filing the |
9 | | original return, extension, claim for
refund, assessment, |
10 | | collection and payment and determination of the group's tax
|
11 | | liability under this Act.
|
12 | | (f) The Department may promulgate regulations to permit |
13 | | nonresident
individual partners of the same partnership, |
14 | | nonresident Subchapter S
corporation shareholders of the same |
15 | | Subchapter S corporation, and
nonresident individuals |
16 | | transacting an insurance business in Illinois under
a Lloyds |
17 | | plan of operation, and nonresident individual members of the |
18 | | same
limited liability company that is treated as a partnership |
19 | | under Section 1501
(a)(16) of this Act, to file composite |
20 | | individual income tax returns
reflecting the composite income |
21 | | of such individuals allocable to Illinois
and to make composite |
22 | | individual income tax payments. The Department may
by |
23 | | regulation also permit such composite returns to include the |
24 | | income tax
owed by Illinois residents attributable to their |
25 | | income from partnerships,
Subchapter S corporations, insurance |
26 | | businesses organized under a Lloyds
plan of operation, or |
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1 | | limited liability companies that are treated as
partnership |
2 | | under Section 1501(a)(16) of this Act, in which case such
|
3 | | Illinois residents will be permitted to claim credits on their |
4 | | individual
returns for their shares of the composite tax |
5 | | payments. This paragraph of
subsection (f) applies to taxable |
6 | | years ending on or after December 31, 1987.
|
7 | | For taxable years ending on or after December 31, 1999, the |
8 | | Department may,
by regulation, also permit any persons |
9 | | transacting an insurance business
organized under a Lloyds plan |
10 | | of operation to file composite returns reflecting
the income of |
11 | | such persons allocable to Illinois and the tax rates applicable
|
12 | | to such persons under Section 201 and to make composite tax |
13 | | payments and shall,
by regulation, also provide that the income |
14 | | and apportionment factors
attributable to the transaction of an |
15 | | insurance business organized under a
Lloyds plan of operation |
16 | | by any person joining in the filing of a composite
return |
17 | | shall, for purposes of allocating and apportioning income under |
18 | | Article
3 of this Act and computing net income under Section |
19 | | 202 of this Act, be
excluded from any other income and |
20 | | apportionment factors of that person or of
any unitary business |
21 | | group, as defined in subdivision (a)(27) of Section 1501,
to |
22 | | which that person may belong.
|
23 | | For taxable years ending on or after December 31, 2008, |
24 | | every nonresident shall be allowed a credit against his or her |
25 | | liability under subsections (a) and (b) of Section 201 for any |
26 | | amount of tax reported on a composite return and paid on his or |
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1 | | her behalf under this subsection (f). Residents (other than |
2 | | persons transacting an insurance business organized under a |
3 | | Lloyds plan of operation) may claim a credit for taxes reported |
4 | | on a composite return and paid on their behalf under this |
5 | | subsection (f) only as permitted by the Department by rule.
|
6 | | (f-5) For taxable years ending on or after December 31, |
7 | | 2008, the Department may adopt rules to provide that, when a |
8 | | partnership or Subchapter S corporation has made an error in |
9 | | determining the amount of any item of income, deduction, |
10 | | addition, subtraction, or credit required to be reported on its |
11 | | return that affects the liability imposed under this Act on a |
12 | | partner or shareholder, the partnership or Subchapter S |
13 | | corporation may report the changes in liabilities of its |
14 | | partners or shareholders and claim a refund of the resulting |
15 | | overpayments, or pay the resulting underpayments, on behalf of |
16 | | its partners and shareholders.
|
17 | | (g) The Department may adopt rules to authorize the |
18 | | electronic filing of
any return required to be filed under this |
19 | | Section.
|
20 | | (Source: P.A. 95-233, eff. 8-16-07; 96-520, eff. 8-14-09.)
|
21 | | (35 ILCS 5/506) (from Ch. 120, par. 5-506)
|
22 | | Sec. 506. Federal Returns.
|
23 | | (a) In general. Any person required to make a return for a |
24 | | taxable
year under this Act may, at any time that a deficiency |
25 | | could be assessed or
a refund claimed under this Act in respect |
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1 | | of any item reported or properly
reportable on such return or |
2 | | any amendment thereof, be required to furnish
to the Department |
3 | | a true and correct copy of any return which may pertain
to such |
4 | | item and which was filed by such person under the provisions of |
5 | | the
Internal Revenue Code.
|
6 | | (b) Changes affecting federal income tax.
A person shall |
7 | | notify the Department if:
|
8 | | (1) the taxable
income, any item of income or |
9 | | deduction, the income tax liability, or
any tax credit |
10 | | reported in an original or amended a federal income tax |
11 | | return of that
person for any
year or as determined by the |
12 | | Internal Revenue Service or the courts is
altered by |
13 | | amendment of such return or as a result of any other
|
14 | | recomputation or redetermination of federal taxable income |
15 | | or loss, and
such alteration reflects a change or |
16 | | settlement with respect to any item or
items, affecting the |
17 | | computation of such person's net income, net loss, or of
|
18 | | any credit provided by Article 2 of this Act for any
year |
19 | | under this Act, or in the number
of personal exemptions |
20 | | allowable to
such person under Section 151 of the Internal |
21 | | Revenue Code, or
|
22 | | (2) the amount of tax required to be withheld by that |
23 | | person from
compensation paid to employees and required to |
24 | | be reported by that person on a
federal return is altered |
25 | | by amendment of the return or by any other
recomputation or |
26 | | redetermination that is agreed to or finally determined on |
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1 | | or
after January 1, 2003, and the alteration affects the |
2 | | amount of compensation
subject to withholding by that |
3 | | person under Section 701 of this Act.
|
4 | | Such notification shall be
in the form of an amended return or |
5 | | such other form as the Department may
by regulations prescribe, |
6 | | shall contain the person's name and address and
such other |
7 | | information as the Department may by regulations prescribe,
|
8 | | shall be signed by such person or his duly authorized |
9 | | representative, and
shall be filed not later than 120 days |
10 | | after such alteration has been agreed
to or finally determined |
11 | | for federal income tax purposes or any federal
income tax |
12 | | deficiency or refund, tentative carryback adjustment, |
13 | | abatement
or credit resulting therefrom has been assessed or |
14 | | paid, whichever shall
first occur.
|
15 | | (Source: P.A. 92-846, eff. 8-23-02.)
|
16 | | (35 ILCS 5/601) (from Ch. 120, par. 6-601)
|
17 | | Sec. 601. Payment on Due Date of Return.
|
18 | | (a) In general. Every taxpayer required to file a return |
19 | | under
this Act shall, without assessment, notice or demand, pay |
20 | | any tax due
thereon to the Department, at the place fixed for |
21 | | filing, on or before
the date fixed for filing such return |
22 | | (determined without regard to any
extension of time for filing |
23 | | the return) pursuant to regulations
prescribed by the |
24 | | Department.
If, however, the due date for payment of a |
25 | | taxpayer's federal income tax
liability for a tax year (as |
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1 | | provided in the Internal Revenue Code or by
Treasury |
2 | | regulation, or as extended by the Internal Revenue Service) is |
3 | | later
than the date fixed for filing the taxpayer's Illinois |
4 | | income tax return for
that tax year, the Department may, by |
5 | | rule, prescribe a due date for payment
that is not later than |
6 | | the due date for payment of the taxpayer's federal
income tax |
7 | | liability. For purposes of the Illinois Administrative |
8 | | Procedure
Act, the adoption of rules to prescribe a later due |
9 | | date for payment shall be
deemed an emergency and necessary for |
10 | | the public interest, safety, and
welfare.
|
11 | | (b) Amount payable. In making payment as provided in this
|
12 | | section there shall remain payable only the balance of such tax
|
13 | | remaining due after giving effect to the following:
|
14 | | (1) Withheld tax. Any amount withheld during any |
15 | | calendar year
pursuant to Article 7 from compensation paid |
16 | | to a taxpayer shall be
deemed to have been paid on account |
17 | | of any tax imposed by subsections 201(a)
and (b) of this |
18 | | Act on
such taxpayer for his taxable year beginning in such |
19 | | calendar year. If
more than one taxable year begins in a |
20 | | calendar year, such amount shall
be deemed to have been |
21 | | paid on account of such tax for the last taxable
year so |
22 | | beginning.
|
23 | | (2) Estimated and tentative tax payments. Any amount of |
24 | | estimated tax
paid by a taxpayer pursuant to Article 8 for |
25 | | a taxable year shall be deemed to
have been paid on account |
26 | | of the tax imposed by this Act for such
taxable year.
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1 | | (3) Foreign tax. The aggregate amount of tax which is |
2 | | imposed
upon or measured by income and which is paid by a |
3 | | resident for a taxable
year to another state or states on |
4 | | income which is also subject to the tax
imposed by |
5 | | subsections 201(a) and (b) of this Act shall be credited |
6 | | against
the tax imposed by subsections 201(a) and (b) |
7 | | otherwise due under
this Act for such taxable year. For |
8 | | taxable years ending prior to December 31, 2009, the |
9 | | aggregate credit provided under this
paragraph shall not |
10 | | exceed that amount which bears the same ratio to the tax
|
11 | | imposed by subsections 201(a) and (b) otherwise due under |
12 | | this Act as the
amount of the taxpayer's base income |
13 | | subject to tax both by such other state or
states and by |
14 | | this State bears to his total base income subject to tax by |
15 | | this
State for the taxable year. For taxable years ending |
16 | | on or after December 31, 2009, the credit provided under |
17 | | this paragraph for tax paid to other states shall not |
18 | | exceed that amount which bears the same ratio to the tax |
19 | | imposed by subsections 201(a) and (b) otherwise due under |
20 | | this Act as the amount of the taxpayer's base income that |
21 | | would be allocated or apportioned to other states if all |
22 | | other states had adopted the provisions in Article 3 of |
23 | | this Act bears to the taxpayer's total base income subject |
24 | | to tax by this State for the taxable year. The credit |
25 | | provided by this paragraph shall
not be allowed if any |
26 | | creditable tax was deducted in determining base income
for |
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1 | | the taxable year. Any person claiming such credit shall |
2 | | attach a
statement in support thereof and shall notify the |
3 | | Director of any refund
or reductions in the amount of tax |
4 | | claimed as a credit hereunder all in
such manner and at |
5 | | such time as the Department shall by regulations prescribe.
|
6 | | (4) Accumulation and capital gain distributions. If |
7 | | the net
income of a taxpayer includes amounts included in |
8 | | his base income by
reason of Section 667 668 or 669 of the |
9 | | Internal Revenue Code (relating to
accumulation and |
10 | | capital gain distributions by a trust, respectively),
the |
11 | | tax imposed on such taxpayer by this Act shall be credited |
12 | | with his
pro rata portion of the taxes imposed by this Act |
13 | | on such trust for
preceding taxable years which would not |
14 | | have been payable for such
preceding years if the trust had |
15 | | in fact made distributions to its
beneficiaries at the |
16 | | times and in the amounts specified in Sections 666
and 669 |
17 | | of the Internal Revenue Code. The credit provided by this
|
18 | | paragraph shall not reduce the tax otherwise due from the |
19 | | taxpayer to an
amount less than that which would be due if |
20 | | the amounts included by
reason of Section 667 Sections 668 |
21 | | and 669 of the Internal Revenue Code were
excluded from his |
22 | | or her base income.
|
23 | | (c) Cross reference. For application against tax due of
|
24 | | overpayments of tax for a prior year, see Section 909.
|
25 | | (Source: P.A. 96-468, eff. 8-14-09.)
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1 | | (35 ILCS 5/701) (from Ch. 120, par. 7-701) |
2 | | Sec. 701. Requirement and Amount of Withholding.
|
3 | | (a) In General. Every
employer maintaining an office or |
4 | | transacting business within this State
and required under the |
5 | | provisions of the Internal Revenue Code to
withhold a tax on:
|
6 | | (1) compensation paid in this State (as determined |
7 | | under Section
304(a)(2)(B) to an individual; or
|
8 | | (2) payments described in subsection (b) shall deduct |
9 | | and withhold from
such compensation for each payroll period |
10 | | (as defined in Section 3401 of
the Internal Revenue Code) |
11 | | an amount equal to the amount by which such
individual's
|
12 | | compensation exceeds the proportionate part of this |
13 | | withholding exemption
(computed as provided in Section |
14 | | 702) attributable to the payroll period
for which such |
15 | | compensation is payable multiplied by a percentage equal
to |
16 | | the percentage tax rate for individuals provided in |
17 | | subsection (b) of
Section 201.
|
18 | | (b) Payment to Residents. Any payment (including |
19 | | compensation) to a
resident
by a payor maintaining an office or |
20 | | transacting business within this State
(including any agency, |
21 | | officer, or employee of this State or of any political
|
22 | | subdivision of this State) and on which withholding of tax is |
23 | | required under
the provisions of the
Internal Revenue Code |
24 | | shall be deemed to be compensation paid in this State
by an |
25 | | employer to an employee for the purposes of Article 7 and |
26 | | Section
601(b)(1) to the extent such payment is included in the |
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1 | | recipient's base
income and not subjected to withholding by |
2 | | another state.
Notwithstanding any other provision to the |
3 | | contrary, no amount shall be
withheld from unemployment |
4 | | insurance benefit payments made to an individual
pursuant to |
5 | | the Unemployment Insurance Act unless the individual has
|
6 | | voluntarily elected the withholding pursuant to rules |
7 | | promulgated by the
Director of Employment Security.
|
8 | | (c) Special Definitions. Withholding shall be considered |
9 | | required under
the provisions of the Internal Revenue Code to |
10 | | the extent the Internal Revenue
Code either requires |
11 | | withholding or allows for voluntary withholding the
payor and |
12 | | recipient have entered into such a voluntary withholding |
13 | | agreement.
For the purposes of Article 7 and Section 1002(c) |
14 | | the term "employer" includes
any payor who is required to |
15 | | withhold tax pursuant to this Section.
|
16 | | (d) Reciprocal Exemption. The Director may enter into an |
17 | | agreement with
the taxing authorities of any state which |
18 | | imposes a tax on or measured by
income to provide that |
19 | | compensation paid in such state to residents of this
State |
20 | | shall be exempt from withholding of such tax; in such case, any
|
21 | | compensation paid in this State to residents of such state |
22 | | shall be exempt
from withholding.
All reciprocal agreements |
23 | | shall be subject to the requirements of Section
2505-575 of the |
24 | | Department of Revenue Law (20 ILCS
2505/2505-575).
|
25 | | (e) Notwithstanding subsection (a)(2) of this Section, no |
26 | | withholding
is required on payments for which withholding is |
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1 | | required under Section
3405 or 3406 of the Internal Revenue |
2 | | Code of 1954 .
|
3 | | (Source: P.A. 92-846, eff. 8-23-02; 93-634, eff. 1-1-04.)
|
4 | | (35 ILCS 5/702) (from Ch. 120, par. 7-702)
|
5 | | Sec. 702. Amount Exempt from Withholding. For purposes of |
6 | | this Section
an employee shall be entitled to a withholding |
7 | | exemption in an amount equal
to the basic amount in Section |
8 | | 204(b) for each personal or
dependent exemption which he is
|
9 | | entitled to claim on his federal return pursuant to Section 151 |
10 | | of the
Internal Revenue Code of 1986 ; plus an allowance equal |
11 | | to $1,000 for each
$1,000 he is entitled to deduct from gross |
12 | | income in arriving at adjusted
gross income pursuant to Section |
13 | | 62 of the Internal Revenue Code of 1986 ;
plus an additional |
14 | | allowance equal to $1,000 for each $1,000 eligible for
|
15 | | subtraction on
his Illinois income tax return as Illinois real |
16 | | estate taxes paid during
the taxable year; or in any lesser |
17 | | amount claimed
by him. Every employee shall furnish to his |
18 | | employer such information as
is required for the employer to |
19 | | make an accurate withholding under this
Act. The employer may |
20 | | rely on this information for withholding purposes.
If any |
21 | | employee fails or refuses to furnish such information, the |
22 | | employer
shall withhold the full rate of tax from the |
23 | | employee's total compensation.
|
24 | | (Source: P.A. 90-613, eff. 7-9-98.)
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1 | | (35 ILCS 5/703) (from Ch. 120, par. 7-703)
|
2 | | Sec. 703. Information statement. Every employer required |
3 | | to deduct and withhold tax under this Act from
compensation of |
4 | | an employee, or who would have been required so to deduct
and |
5 | | withhold tax if the employee's withholding exemption were not |
6 | | in excess
of the basic amount in Section 204(b), shall furnish |
7 | | in
duplicate to each such employee in respect of
the |
8 | | compensation paid by such employer to such employee during the |
9 | | calendar
year on or before January 31 of the succeeding year, |
10 | | or, if his employment
is terminated before the close of such |
11 | | calendar year, on the date on which
the last payment of |
12 | | compensation is made, a written statement in such form
as the |
13 | | Department may by regulation prescribe showing the amount of
|
14 | | compensation paid by the employer to the employee, the amount |
15 | | deducted and
withheld as tax, the tax-exempt amount contributed |
16 | | to a medical savings
account, and such other information as the |
17 | | Department shall
prescribe. A copy of such statement shall be |
18 | | filed by the employee with his
return for his taxable year to |
19 | | which it relates (as determined under
Section 601(b)(1)).
|
20 | | (Source: P.A. 91-841, eff. 6-22-00; 92-16, eff. 6-28-01.)
|
21 | | (35 ILCS 5/704A) |
22 | | Sec. 704A. Employer's return and payment of tax withheld. |
23 | | (a) In general, every employer who deducts and withholds or |
24 | | is required to deduct and withhold tax under this Act on or |
25 | | after January 1, 2008 shall make those payments and returns as |
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1 | | provided in this Section. |
2 | | (b) Returns. Every employer shall, in the form and manner |
3 | | required by the Department, make returns with respect to taxes |
4 | | withheld or required to be withheld under this Article 7 for |
5 | | each quarter beginning on or after January 1, 2008, on or |
6 | | before the last day of the first month following the close of |
7 | | that quarter. |
8 | | (c) Payments. With respect to amounts withheld or required |
9 | | to be withheld on or after January 1, 2008: |
10 | | (1) Semi-weekly payments. For each calendar year, each |
11 | | employer who withheld or was required to withhold more than |
12 | | $12,000 during the one-year period ending on June 30 of the |
13 | | immediately preceding calendar year, payment must be made: |
14 | | (A) on or before each Friday of the calendar year, |
15 | | for taxes withheld or required to be withheld on the |
16 | | immediately preceding Saturday, Sunday, Monday, or |
17 | | Tuesday; |
18 | | (B) on or before each Wednesday of the calendar |
19 | | year, for taxes withheld or required to be withheld on |
20 | | the immediately preceding Wednesday, Thursday, or |
21 | | Friday. |
22 | | Beginning with calendar year 2011, payments payment |
23 | | made under this paragraph (1) of subsection (c) must be |
24 | | made by electronic funds transfer. |
25 | | (2) Semi-weekly payments. Any employer who withholds |
26 | | or is required to withhold more than $12,000 in any quarter |
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1 | | of a calendar year is required to make payments on the |
2 | | dates set forth under item (1) of this subsection (c) for |
3 | | each remaining quarter of that calendar year and for the |
4 | | subsequent calendar year.
|
5 | | (3) Monthly payments. Each employer, other than an |
6 | | employer described in items (1) or (2) of this subsection, |
7 | | shall pay to the Department, on or before the 15th day of |
8 | | each month the taxes withheld or required to be withheld |
9 | | during the immediately preceding month. |
10 | | (4) Payments with returns. Each employer shall pay to |
11 | | the Department, on or before the due date for each return |
12 | | required to be filed under this Section, any tax withheld |
13 | | or required to be withheld during the period for which the |
14 | | return is due and not previously paid to the Department. |
15 | | (d) Regulatory authority. The Department may, by rule: |
16 | | (1) Permit employers, in lieu of the requirements of |
17 | | subsections (b) and (c), to file annual returns due on or |
18 | | before January 31 of the year for taxes withheld or |
19 | | required to be withheld during the previous calendar year |
20 | | and, if the aggregate amounts required to be withheld by |
21 | | the employer under this Article 7 (other than amounts |
22 | | required to be withheld under Section 709.5) do not exceed |
23 | | $1,000 for the previous calendar year, to pay the taxes |
24 | | required to be shown on each such return no later than the |
25 | | due date for such return. |
26 | | (2) Provide that any payment required to be made under |
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1 | | subsection (c)(1) or (c)(2) is deemed to be timely to the |
2 | | extent paid by electronic funds transfer on or before the |
3 | | due date for deposit of federal income taxes withheld from, |
4 | | or federal employment taxes due with respect to, the wages |
5 | | from which the Illinois taxes were withheld. |
6 | | (3) Designate one or more depositories to which payment |
7 | | of taxes required to be withheld under this Article 7 must |
8 | | be paid by some or all employers. |
9 | | (4) Increase the threshold dollar amounts at which |
10 | | employers are required to make semi-weekly payments under |
11 | | subsection (c)(1) or (c)(2). |
12 | | (e) Annual return and payment. Every employer who deducts |
13 | | and withholds or is required to deduct and withhold tax from a |
14 | | person engaged in domestic service employment, as that term is |
15 | | defined in Section 3510 of the Internal Revenue Code, may |
16 | | comply with the requirements of this Section with respect to |
17 | | such employees by filing an annual return and paying the taxes |
18 | | required to be deducted and withheld on or before the 15th day |
19 | | of the fourth month following the close of the employer's |
20 | | taxable year. The Department may allow the employer's return to |
21 | | be submitted with the employer's individual income tax return |
22 | | or to be submitted with a return due from the employer under |
23 | | Section 1400.2 of the Unemployment Insurance Act. |
24 | | (f) Magnetic media and electronic filing. Any W-2 Form |
25 | | that, under the Internal Revenue Code and regulations |
26 | | promulgated thereunder, is required to be submitted to the |
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1 | | Internal Revenue Service on magnetic media or electronically |
2 | | must also be submitted to the Department on magnetic media or |
3 | | electronically for Illinois purposes, if required by the |
4 | | Department. |
5 | | (g) For amounts deducted or withheld after December 31, |
6 | | 2009, a taxpayer who makes an election under subsection (f) of |
7 | | Section 5-15 of the Economic Development for a Growing Economy |
8 | | Tax Credit Act for a taxable year shall be allowed a credit |
9 | | against payments due under this Section for amounts withheld |
10 | | during the first calendar year beginning after the end of that |
11 | | taxable year equal to the amount of the credit for the |
12 | | incremental income tax attributable to full-time employees of |
13 | | the taxpayer awarded to the taxpayer by the Department of |
14 | | Commerce and Economic Opportunity under the Economic |
15 | | Development for a Growing Economy Tax Credit Act for the |
16 | | taxable year and credits not previously claimed and allowed to |
17 | | be carried forward under Section 211(4) of this Act as provided |
18 | | in subsection (f) of Section 5-15 of the Economic Development |
19 | | for a Growing Economy Tax Credit Act. The credit or credits may |
20 | | not reduce the taxpayer's obligation for any payment due under |
21 | | this Section to less than zero. If the amount of the credit or |
22 | | credits exceeds the total payments due under this Section with |
23 | | respect to amounts withheld during the calendar year, the |
24 | | excess may be carried forward and applied against the |
25 | | taxpayer's liability under this Section in the succeeding |
26 | | calendar years as allowed to be carried forward under paragraph |