Rep. Barbara Flynn Currie

Filed: 5/19/2014

 

 


 

 


 
09800HB0395ham001LRB098 03214 HLH 59781 a

1
AMENDMENT TO HOUSE BILL 395

2    AMENDMENT NO. ______. Amend House Bill 395 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Revenue Sharing Act is amended by
5changing Section 1 as follows:
 
6    (30 ILCS 115/1)  (from Ch. 85, par. 611)
7    Sec. 1. Local Government Distributive Fund.
8    (a) Through June 30, 1994, as soon as may be after the
9first day of each month the Department of Revenue shall certify
10to the Treasurer an amount equal to 1/12 of the net revenue
11realized from the tax imposed by subsections (a) and (b) of
12Section 201 of the Illinois Income Tax Act during the preceding
13month.
14    Beginning July 1, 1994, and continuing through June 30,
151995, as soon as may be after the first day of each month, the
16Department of Revenue shall certify to the Treasurer an amount

 

 

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1equal to 1/11 of the net revenue realized from the tax imposed
2by subsections (a) and (b) of Section 201 of the Illinois
3Income Tax Act during the preceding month.
4    Beginning July 1, 1995, and continuing through January 31,
52011, as soon as may be after the first day of each month, the
6Department of Revenue shall certify to the Treasurer an amount
7equal to 1/10 of the net revenue realized from the tax imposed
8by subsections (a) and (b) of Section 201 of the Illinois
9Income Tax Act during the preceding month.
10    For the purpose of this subsection (a), net Net revenue
11realized for a month shall be defined as the revenue from the
12tax imposed by subsections (a) and (b) of Section 201 of the
13Illinois Income Tax Act which is deposited in the General
14Revenue Fund, the Education Assistance Fund and the Income Tax
15Surcharge Local Government Distributive Fund during the month
16minus the amount paid out of the General Revenue Fund in State
17warrants during that same month as refunds to taxpayers for
18overpayment of liability under the tax imposed by subsections
19(a) and (b) of Section 201 of the Illinois Income Tax Act.
20    Upon receipt of a such certification under this subsection
21(a), the Treasurer shall transfer from the General Revenue Fund
22to a special fund in the State treasury, to be known as the
23"Local Government Distributive Fund", the amount shown on such
24certification.
25    (b) Beginning February 1, 2011, for all payments collected
26on or after December 31, 2010, the Treasurer shall transfer

 

 

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1each month from the General Revenue Fund to the Local
2Government Distributive Fund the amount determined under
3subsection (b) of Section 901 of the Illinois Income Tax Act.
4    (c) All amounts paid into the Local Government Distributive
5Fund in accordance with this Section and allocated pursuant to
6this Act are appropriated on a continuing basis.
7(Source: P.A. 88-89.)
 
8    Section 10. The Illinois Income Tax Act is amended by
9changing Sections 201 and 901 as follows:
 
10    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
11    Sec. 201. Tax Imposed.
12    (a) In general. A tax measured by net income is hereby
13imposed on every individual, corporation, trust and estate for
14each taxable year ending after July 31, 1969 on the privilege
15of earning or receiving income in or as a resident of this
16State. Such tax shall be in addition to all other occupation or
17privilege taxes imposed by this State or by any municipal
18corporation or political subdivision thereof.
19    (b) Rates. The tax imposed by subsection (a) of this
20Section shall be determined as follows, except as adjusted by
21subsection (d-1):
22        (1) In the case of an individual, trust or estate, for
23    taxable years ending prior to July 1, 1989, an amount equal
24    to 2 1/2% of the taxpayer's net income for the taxable

 

 

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1    year.
2        (2) In the case of an individual, trust or estate, for
3    taxable years beginning prior to July 1, 1989 and ending
4    after June 30, 1989, an amount equal to the sum of (i) 2
5    1/2% of the taxpayer's net income for the period prior to
6    July 1, 1989, as calculated under Section 202.3, and (ii)
7    3% of the taxpayer's net income for the period after June
8    30, 1989, as calculated under Section 202.3.
9        (3) In the case of an individual, trust or estate, for
10    taxable years beginning after June 30, 1989, and ending
11    prior to January 1, 2011, an amount equal to 3% of the
12    taxpayer's net income for the taxable year.
13        (4) In the case of an individual, trust, or estate, for
14    taxable years beginning prior to January 1, 2011, and
15    ending after December 31, 2010, an amount equal to the sum
16    of (i) 3% of the taxpayer's net income for the period prior
17    to January 1, 2011, as calculated under Section 202.5, and
18    (ii) 5% of the taxpayer's net income for the period after
19    December 31, 2010, as calculated under Section 202.5.
20        (5) In the case of an individual, trust, or estate, for
21    taxable years beginning on or after January 1, 2011, and
22    ending prior to January 1, 2015, an amount equal to 5% of
23    the taxpayer's net income for the taxable year.
24        (5.1) (Blank). In the case of an individual, trust, or
25    estate, for taxable years beginning prior to January 1,
26    2015, and ending after December 31, 2014, an amount equal

 

 

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1    to the sum of (i) 5% of the taxpayer's net income for the
2    period prior to January 1, 2015, as calculated under
3    Section 202.5, and (ii) 3.75% of the taxpayer's net income
4    for the period after December 31, 2014, as calculated under
5    Section 202.5.
6        (5.2) (Blank). In the case of an individual, trust, or
7    estate, for taxable years beginning on or after January 1,
8    2015, and ending prior to January 1, 2025, an amount equal
9    to 3.75% of the taxpayer's net income for the taxable year.
10        (5.3) (Blank). In the case of an individual, trust, or
11    estate, for taxable years beginning prior to January 1,
12    2025, and ending after December 31, 2024, an amount equal
13    to the sum of (i) 3.75% of the taxpayer's net income for
14    the period prior to January 1, 2025, as calculated under
15    Section 202.5, and (ii) 3.25% of the taxpayer's net income
16    for the period after December 31, 2024, as calculated under
17    Section 202.5.
18        (5.4) (Blank). In the case of an individual, trust, or
19    estate, for taxable years beginning on or after January 1,
20    2025, an amount equal to 3.25% of the taxpayer's net income
21    for the taxable year.
22        (6) In the case of a corporation, for taxable years
23    ending prior to July 1, 1989, an amount equal to 4% of the
24    taxpayer's net income for the taxable year.
25        (7) In the case of a corporation, for taxable years
26    beginning prior to July 1, 1989 and ending after June 30,

 

 

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1    1989, an amount equal to the sum of (i) 4% of the
2    taxpayer's net income for the period prior to July 1, 1989,
3    as calculated under Section 202.3, and (ii) 4.8% of the
4    taxpayer's net income for the period after June 30, 1989,
5    as calculated under Section 202.3.
6        (8) In the case of a corporation, for taxable years
7    beginning after June 30, 1989, and ending prior to January
8    1, 2011, an amount equal to 4.8% of the taxpayer's net
9    income for the taxable year.
10        (9) In the case of a corporation, for taxable years
11    beginning prior to January 1, 2011, and ending after
12    December 31, 2010, an amount equal to the sum of (i) 4.8%
13    of the taxpayer's net income for the period prior to
14    January 1, 2011, as calculated under Section 202.5, and
15    (ii) 7% of the taxpayer's net income for the period after
16    December 31, 2010, as calculated under Section 202.5.
17        (10) In the case of a corporation, for taxable years
18    beginning on or after January 1, 2011, and ending prior to
19    January 1, 2015, an amount equal to 7% of the taxpayer's
20    net income for the taxable year.
21        (11) (Blank). In the case of a corporation, for taxable
22    years beginning prior to January 1, 2015, and ending after
23    December 31, 2014, an amount equal to the sum of (i) 7% of
24    the taxpayer's net income for the period prior to January
25    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
26    of the taxpayer's net income for the period after December

 

 

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1    31, 2014, as calculated under Section 202.5.
2        (12) (Blank). In the case of a corporation, for taxable
3    years beginning on or after January 1, 2015, and ending
4    prior to January 1, 2025, an amount equal to 5.25% of the
5    taxpayer's net income for the taxable year.
6        (13) (Blank). In the case of a corporation, for taxable
7    years beginning prior to January 1, 2025, and ending after
8    December 31, 2024, an amount equal to the sum of (i) 5.25%
9    of the taxpayer's net income for the period prior to
10    January 1, 2025, as calculated under Section 202.5, and
11    (ii) 4.8% of the taxpayer's net income for the period after
12    December 31, 2024, as calculated under Section 202.5.
13        (14) In the case of a corporation, for taxable years
14    beginning on or after January 1, 2025, an amount equal to
15    4.8% of the taxpayer's net income for the taxable year.
16    The rates under this subsection (b) are subject to the
17provisions of Section 201.5.
18    (c) Personal Property Tax Replacement Income Tax.
19Beginning on July 1, 1979 and thereafter, in addition to such
20income tax, there is also hereby imposed the Personal Property
21Tax Replacement Income Tax measured by net income on every
22corporation (including Subchapter S corporations), partnership
23and trust, for each taxable year ending after June 30, 1979.
24Such taxes are imposed on the privilege of earning or receiving
25income in or as a resident of this State. The Personal Property
26Tax Replacement Income Tax shall be in addition to the income

 

 

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1tax imposed by subsections (a) and (b) of this Section and in
2addition to all other occupation or privilege taxes imposed by
3this State or by any municipal corporation or political
4subdivision thereof.
5    (d) Additional Personal Property Tax Replacement Income
6Tax Rates. The personal property tax replacement income tax
7imposed by this subsection and subsection (c) of this Section
8in the case of a corporation, other than a Subchapter S
9corporation and except as adjusted by subsection (d-1), shall
10be an additional amount equal to 2.85% of such taxpayer's net
11income for the taxable year, except that beginning on January
121, 1981, and thereafter, the rate of 2.85% specified in this
13subsection shall be reduced to 2.5%, and in the case of a
14partnership, trust or a Subchapter S corporation shall be an
15additional amount equal to 1.5% of such taxpayer's net income
16for the taxable year.
17    (d-1) Rate reduction for certain foreign insurers. In the
18case of a foreign insurer, as defined by Section 35A-5 of the
19Illinois Insurance Code, whose state or country of domicile
20imposes on insurers domiciled in Illinois a retaliatory tax
21(excluding any insurer whose premiums from reinsurance assumed
22are 50% or more of its total insurance premiums as determined
23under paragraph (2) of subsection (b) of Section 304, except
24that for purposes of this determination premiums from
25reinsurance do not include premiums from inter-affiliate
26reinsurance arrangements), beginning with taxable years ending

 

 

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1on or after December 31, 1999, the sum of the rates of tax
2imposed by subsections (b) and (d) shall be reduced (but not
3increased) to the rate at which the total amount of tax imposed
4under this Act, net of all credits allowed under this Act,
5shall equal (i) the total amount of tax that would be imposed
6on the foreign insurer's net income allocable to Illinois for
7the taxable year by such foreign insurer's state or country of
8domicile if that net income were subject to all income taxes
9and taxes measured by net income imposed by such foreign
10insurer's state or country of domicile, net of all credits
11allowed or (ii) a rate of zero if no such tax is imposed on such
12income by the foreign insurer's state of domicile. For the
13purposes of this subsection (d-1), an inter-affiliate includes
14a mutual insurer under common management.
15        (1) For the purposes of subsection (d-1), in no event
16    shall the sum of the rates of tax imposed by subsections
17    (b) and (d) be reduced below the rate at which the sum of:
18            (A) the total amount of tax imposed on such foreign
19        insurer under this Act for a taxable year, net of all
20        credits allowed under this Act, plus
21            (B) the privilege tax imposed by Section 409 of the
22        Illinois Insurance Code, the fire insurance company
23        tax imposed by Section 12 of the Fire Investigation
24        Act, and the fire department taxes imposed under
25        Section 11-10-1 of the Illinois Municipal Code,
26    equals 1.25% for taxable years ending prior to December 31,

 

 

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1    2003, or 1.75% for taxable years ending on or after
2    December 31, 2003, of the net taxable premiums written for
3    the taxable year, as described by subsection (1) of Section
4    409 of the Illinois Insurance Code. This paragraph will in
5    no event increase the rates imposed under subsections (b)
6    and (d).
7        (2) Any reduction in the rates of tax imposed by this
8    subsection shall be applied first against the rates imposed
9    by subsection (b) and only after the tax imposed by
10    subsection (a) net of all credits allowed under this
11    Section other than the credit allowed under subsection (i)
12    has been reduced to zero, against the rates imposed by
13    subsection (d).
14    This subsection (d-1) is exempt from the provisions of
15Section 250.
16    (e) Investment credit. A taxpayer shall be allowed a credit
17against the Personal Property Tax Replacement Income Tax for
18investment in qualified property.
19        (1) A taxpayer shall be allowed a credit equal to .5%
20    of the basis of qualified property placed in service during
21    the taxable year, provided such property is placed in
22    service on or after July 1, 1984. There shall be allowed an
23    additional credit equal to .5% of the basis of qualified
24    property placed in service during the taxable year,
25    provided such property is placed in service on or after
26    July 1, 1986, and the taxpayer's base employment within

 

 

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1    Illinois has increased by 1% or more over the preceding
2    year as determined by the taxpayer's employment records
3    filed with the Illinois Department of Employment Security.
4    Taxpayers who are new to Illinois shall be deemed to have
5    met the 1% growth in base employment for the first year in
6    which they file employment records with the Illinois
7    Department of Employment Security. The provisions added to
8    this Section by Public Act 85-1200 (and restored by Public
9    Act 87-895) shall be construed as declaratory of existing
10    law and not as a new enactment. If, in any year, the
11    increase in base employment within Illinois over the
12    preceding year is less than 1%, the additional credit shall
13    be limited to that percentage times a fraction, the
14    numerator of which is .5% and the denominator of which is
15    1%, but shall not exceed .5%. The investment credit shall
16    not be allowed to the extent that it would reduce a
17    taxpayer's liability in any tax year below zero, nor may
18    any credit for qualified property be allowed for any year
19    other than the year in which the property was placed in
20    service in Illinois. For tax years ending on or after
21    December 31, 1987, and on or before December 31, 1988, the
22    credit shall be allowed for the tax year in which the
23    property is placed in service, or, if the amount of the
24    credit exceeds the tax liability for that year, whether it
25    exceeds the original liability or the liability as later
26    amended, such excess may be carried forward and applied to

 

 

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1    the tax liability of the 5 taxable years following the
2    excess credit years if the taxpayer (i) makes investments
3    which cause the creation of a minimum of 2,000 full-time
4    equivalent jobs in Illinois, (ii) is located in an
5    enterprise zone established pursuant to the Illinois
6    Enterprise Zone Act and (iii) is certified by the
7    Department of Commerce and Community Affairs (now
8    Department of Commerce and Economic Opportunity) as
9    complying with the requirements specified in clause (i) and
10    (ii) by July 1, 1986. The Department of Commerce and
11    Community Affairs (now Department of Commerce and Economic
12    Opportunity) shall notify the Department of Revenue of all
13    such certifications immediately. For tax years ending
14    after December 31, 1988, the credit shall be allowed for
15    the tax year in which the property is placed in service,
16    or, if the amount of the credit exceeds the tax liability
17    for that year, whether it exceeds the original liability or
18    the liability as later amended, such excess may be carried
19    forward and applied to the tax liability of the 5 taxable
20    years following the excess credit years. The credit shall
21    be applied to the earliest year for which there is a
22    liability. If there is credit from more than one tax year
23    that is available to offset a liability, earlier credit
24    shall be applied first.
25        (2) The term "qualified property" means property
26    which:

 

 

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1            (A) is tangible, whether new or used, including
2        buildings and structural components of buildings and
3        signs that are real property, but not including land or
4        improvements to real property that are not a structural
5        component of a building such as landscaping, sewer
6        lines, local access roads, fencing, parking lots, and
7        other appurtenances;
8            (B) is depreciable pursuant to Section 167 of the
9        Internal Revenue Code, except that "3-year property"
10        as defined in Section 168(c)(2)(A) of that Code is not
11        eligible for the credit provided by this subsection
12        (e);
13            (C) is acquired by purchase as defined in Section
14        179(d) of the Internal Revenue Code;
15            (D) is used in Illinois by a taxpayer who is
16        primarily engaged in manufacturing, or in mining coal
17        or fluorite, or in retailing, or was placed in service
18        on or after July 1, 2006 in a River Edge Redevelopment
19        Zone established pursuant to the River Edge
20        Redevelopment Zone Act; and
21            (E) has not previously been used in Illinois in
22        such a manner and by such a person as would qualify for
23        the credit provided by this subsection (e) or
24        subsection (f).
25        (3) For purposes of this subsection (e),
26    "manufacturing" means the material staging and production

 

 

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1    of tangible personal property by procedures commonly
2    regarded as manufacturing, processing, fabrication, or
3    assembling which changes some existing material into new
4    shapes, new qualities, or new combinations. For purposes of
5    this subsection (e) the term "mining" shall have the same
6    meaning as the term "mining" in Section 613(c) of the
7    Internal Revenue Code. For purposes of this subsection (e),
8    the term "retailing" means the sale of tangible personal
9    property for use or consumption and not for resale, or
10    services rendered in conjunction with the sale of tangible
11    personal property for use or consumption and not for
12    resale. For purposes of this subsection (e), "tangible
13    personal property" has the same meaning as when that term
14    is used in the Retailers' Occupation Tax Act, and, for
15    taxable years ending after December 31, 2008, does not
16    include the generation, transmission, or distribution of
17    electricity.
18        (4) The basis of qualified property shall be the basis
19    used to compute the depreciation deduction for federal
20    income tax purposes.
21        (5) If the basis of the property for federal income tax
22    depreciation purposes is increased after it has been placed
23    in service in Illinois by the taxpayer, the amount of such
24    increase shall be deemed property placed in service on the
25    date of such increase in basis.
26        (6) The term "placed in service" shall have the same

 

 

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1    meaning as under Section 46 of the Internal Revenue Code.
2        (7) If during any taxable year, any property ceases to
3    be qualified property in the hands of the taxpayer within
4    48 months after being placed in service, or the situs of
5    any qualified property is moved outside Illinois within 48
6    months after being placed in service, the Personal Property
7    Tax Replacement Income Tax for such taxable year shall be
8    increased. Such increase shall be determined by (i)
9    recomputing the investment credit which would have been
10    allowed for the year in which credit for such property was
11    originally allowed by eliminating such property from such
12    computation and, (ii) subtracting such recomputed credit
13    from the amount of credit previously allowed. For the
14    purposes of this paragraph (7), a reduction of the basis of
15    qualified property resulting from a redetermination of the
16    purchase price shall be deemed a disposition of qualified
17    property to the extent of such reduction.
18        (8) Unless the investment credit is extended by law,
19    the basis of qualified property shall not include costs
20    incurred after December 31, 2018, except for costs incurred
21    pursuant to a binding contract entered into on or before
22    December 31, 2018.
23        (9) Each taxable year ending before December 31, 2000,
24    a partnership may elect to pass through to its partners the
25    credits to which the partnership is entitled under this
26    subsection (e) for the taxable year. A partner may use the

 

 

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1    credit allocated to him or her under this paragraph only
2    against the tax imposed in subsections (c) and (d) of this
3    Section. If the partnership makes that election, those
4    credits shall be allocated among the partners in the
5    partnership in accordance with the rules set forth in
6    Section 704(b) of the Internal Revenue Code, and the rules
7    promulgated under that Section, and the allocated amount of
8    the credits shall be allowed to the partners for that
9    taxable year. The partnership shall make this election on
10    its Personal Property Tax Replacement Income Tax return for
11    that taxable year. The election to pass through the credits
12    shall be irrevocable.
13        For taxable years ending on or after December 31, 2000,
14    a partner that qualifies its partnership for a subtraction
15    under subparagraph (I) of paragraph (2) of subsection (d)
16    of Section 203 or a shareholder that qualifies a Subchapter
17    S corporation for a subtraction under subparagraph (S) of
18    paragraph (2) of subsection (b) of Section 203 shall be
19    allowed a credit under this subsection (e) equal to its
20    share of the credit earned under this subsection (e) during
21    the taxable year by the partnership or Subchapter S
22    corporation, determined in accordance with the
23    determination of income and distributive share of income
24    under Sections 702 and 704 and Subchapter S of the Internal
25    Revenue Code. This paragraph is exempt from the provisions
26    of Section 250.

 

 

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1    (f) Investment credit; Enterprise Zone; River Edge
2Redevelopment Zone.
3        (1) A taxpayer shall be allowed a credit against the
4    tax imposed by subsections (a) and (b) of this Section for
5    investment in qualified property which is placed in service
6    in an Enterprise Zone created pursuant to the Illinois
7    Enterprise Zone Act or, for property placed in service on
8    or after July 1, 2006, a River Edge Redevelopment Zone
9    established pursuant to the River Edge Redevelopment Zone
10    Act. For partners, shareholders of Subchapter S
11    corporations, and owners of limited liability companies,
12    if the liability company is treated as a partnership for
13    purposes of federal and State income taxation, there shall
14    be allowed a credit under this subsection (f) to be
15    determined in accordance with the determination of income
16    and distributive share of income under Sections 702 and 704
17    and Subchapter S of the Internal Revenue Code. The credit
18    shall be .5% of the basis for such property. The credit
19    shall be available only in the taxable year in which the
20    property is placed in service in the Enterprise Zone or
21    River Edge Redevelopment Zone and shall not be allowed to
22    the extent that it would reduce a taxpayer's liability for
23    the tax imposed by subsections (a) and (b) of this Section
24    to below zero. For tax years ending on or after December
25    31, 1985, the credit shall be allowed for the tax year in
26    which the property is placed in service, or, if the amount

 

 

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1    of the credit exceeds the tax liability for that year,
2    whether it exceeds the original liability or the liability
3    as later amended, such excess may be carried forward and
4    applied to the tax liability of the 5 taxable years
5    following the excess credit year. The credit shall be
6    applied to the earliest year for which there is a
7    liability. If there is credit from more than one tax year
8    that is available to offset a liability, the credit
9    accruing first in time shall be applied first.
10        (2) The term qualified property means property which:
11            (A) is tangible, whether new or used, including
12        buildings and structural components of buildings;
13            (B) is depreciable pursuant to Section 167 of the
14        Internal Revenue Code, except that "3-year property"
15        as defined in Section 168(c)(2)(A) of that Code is not
16        eligible for the credit provided by this subsection
17        (f);
18            (C) is acquired by purchase as defined in Section
19        179(d) of the Internal Revenue Code;
20            (D) is used in the Enterprise Zone or River Edge
21        Redevelopment Zone by the taxpayer; and
22            (E) has not been previously used in Illinois in
23        such a manner and by such a person as would qualify for
24        the credit provided by this subsection (f) or
25        subsection (e).
26        (3) The basis of qualified property shall be the basis

 

 

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1    used to compute the depreciation deduction for federal
2    income tax purposes.
3        (4) If the basis of the property for federal income tax
4    depreciation purposes is increased after it has been placed
5    in service in the Enterprise Zone or River Edge
6    Redevelopment Zone by the taxpayer, the amount of such
7    increase shall be deemed property placed in service on the
8    date of such increase in basis.
9        (5) The term "placed in service" shall have the same
10    meaning as under Section 46 of the Internal Revenue Code.
11        (6) If during any taxable year, any property ceases to
12    be qualified property in the hands of the taxpayer within
13    48 months after being placed in service, or the situs of
14    any qualified property is moved outside the Enterprise Zone
15    or River Edge Redevelopment Zone within 48 months after
16    being placed in service, the tax imposed under subsections
17    (a) and (b) of this Section for such taxable year shall be
18    increased. Such increase shall be determined by (i)
19    recomputing the investment credit which would have been
20    allowed for the year in which credit for such property was
21    originally allowed by eliminating such property from such
22    computation, and (ii) subtracting such recomputed credit
23    from the amount of credit previously allowed. For the
24    purposes of this paragraph (6), a reduction of the basis of
25    qualified property resulting from a redetermination of the
26    purchase price shall be deemed a disposition of qualified

 

 

09800HB0395ham001- 20 -LRB098 03214 HLH 59781 a

1    property to the extent of such reduction.
2        (7) There shall be allowed an additional credit equal
3    to 0.5% of the basis of qualified property placed in
4    service during the taxable year in a River Edge
5    Redevelopment Zone, provided such property is placed in
6    service on or after July 1, 2006, and the taxpayer's base
7    employment within Illinois has increased by 1% or more over
8    the preceding year as determined by the taxpayer's
9    employment records filed with the Illinois Department of
10    Employment Security. Taxpayers who are new to Illinois
11    shall be deemed to have met the 1% growth in base
12    employment for the first year in which they file employment
13    records with the Illinois Department of Employment
14    Security. If, in any year, the increase in base employment
15    within Illinois over the preceding year is less than 1%,
16    the additional credit shall be limited to that percentage
17    times a fraction, the numerator of which is 0.5% and the
18    denominator of which is 1%, but shall not exceed 0.5%.
19    (g) (Blank).
20    (h) Investment credit; High Impact Business.
21        (1) Subject to subsections (b) and (b-5) of Section 5.5
22    of the Illinois Enterprise Zone Act, a taxpayer shall be
23    allowed a credit against the tax imposed by subsections (a)
24    and (b) of this Section for investment in qualified
25    property which is placed in service by a Department of
26    Commerce and Economic Opportunity designated High Impact

 

 

09800HB0395ham001- 21 -LRB098 03214 HLH 59781 a

1    Business. The credit shall be .5% of the basis for such
2    property. The credit shall not be available (i) until the
3    minimum investments in qualified property set forth in
4    subdivision (a)(3)(A) of Section 5.5 of the Illinois
5    Enterprise Zone Act have been satisfied or (ii) until the
6    time authorized in subsection (b-5) of the Illinois
7    Enterprise Zone Act for entities designated as High Impact
8    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
9    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
10    Act, and shall not be allowed to the extent that it would
11    reduce a taxpayer's liability for the tax imposed by
12    subsections (a) and (b) of this Section to below zero. The
13    credit applicable to such investments shall be taken in the
14    taxable year in which such investments have been completed.
15    The credit for additional investments beyond the minimum
16    investment by a designated high impact business authorized
17    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
18    Enterprise Zone Act shall be available only in the taxable
19    year in which the property is placed in service and shall
20    not be allowed to the extent that it would reduce a
21    taxpayer's liability for the tax imposed by subsections (a)
22    and (b) of this Section to below zero. For tax years ending
23    on or after December 31, 1987, the credit shall be allowed
24    for the tax year in which the property is placed in
25    service, or, if the amount of the credit exceeds the tax
26    liability for that year, whether it exceeds the original

 

 

09800HB0395ham001- 22 -LRB098 03214 HLH 59781 a

1    liability or the liability as later amended, such excess
2    may be carried forward and applied to the tax liability of
3    the 5 taxable years following the excess credit year. The
4    credit shall be applied to the earliest year for which
5    there is a liability. If there is credit from more than one
6    tax year that is available to offset a liability, the
7    credit accruing first in time shall be applied first.
8        Changes made in this subdivision (h)(1) by Public Act
9    88-670 restore changes made by Public Act 85-1182 and
10    reflect existing law.
11        (2) The term qualified property means property which:
12            (A) is tangible, whether new or used, including
13        buildings and structural components of buildings;
14            (B) is depreciable pursuant to Section 167 of the
15        Internal Revenue Code, except that "3-year property"
16        as defined in Section 168(c)(2)(A) of that Code is not
17        eligible for the credit provided by this subsection
18        (h);
19            (C) is acquired by purchase as defined in Section
20        179(d) of the Internal Revenue Code; and
21            (D) is not eligible for the Enterprise Zone
22        Investment Credit provided by subsection (f) of this
23        Section.
24        (3) The basis of qualified property shall be the basis
25    used to compute the depreciation deduction for federal
26    income tax purposes.

 

 

09800HB0395ham001- 23 -LRB098 03214 HLH 59781 a

1        (4) If the basis of the property for federal income tax
2    depreciation purposes is increased after it has been placed
3    in service in a federally designated Foreign Trade Zone or
4    Sub-Zone located in Illinois by the taxpayer, the amount of
5    such increase shall be deemed property placed in service on
6    the date of such increase in basis.
7        (5) The term "placed in service" shall have the same
8    meaning as under Section 46 of the Internal Revenue Code.
9        (6) If during any taxable year ending on or before
10    December 31, 1996, any property ceases to be qualified
11    property in the hands of the taxpayer within 48 months
12    after being placed in service, or the situs of any
13    qualified property is moved outside Illinois within 48
14    months after being placed in service, the tax imposed under
15    subsections (a) and (b) of this Section for such taxable
16    year shall be increased. Such increase shall be determined
17    by (i) recomputing the investment credit which would have
18    been allowed for the year in which credit for such property
19    was originally allowed by eliminating such property from
20    such computation, and (ii) subtracting such recomputed
21    credit from the amount of credit previously allowed. For
22    the purposes of this paragraph (6), a reduction of the
23    basis of qualified property resulting from a
24    redetermination of the purchase price shall be deemed a
25    disposition of qualified property to the extent of such
26    reduction.

 

 

09800HB0395ham001- 24 -LRB098 03214 HLH 59781 a

1        (7) Beginning with tax years ending after December 31,
2    1996, if a taxpayer qualifies for the credit under this
3    subsection (h) and thereby is granted a tax abatement and
4    the taxpayer relocates its entire facility in violation of
5    the explicit terms and length of the contract under Section
6    18-183 of the Property Tax Code, the tax imposed under
7    subsections (a) and (b) of this Section shall be increased
8    for the taxable year in which the taxpayer relocated its
9    facility by an amount equal to the amount of credit
10    received by the taxpayer under this subsection (h).
11    (i) Credit for Personal Property Tax Replacement Income
12Tax. For tax years ending prior to December 31, 2003, a credit
13shall be allowed against the tax imposed by subsections (a) and
14(b) of this Section for the tax imposed by subsections (c) and
15(d) of this Section. This credit shall be computed by
16multiplying the tax imposed by subsections (c) and (d) of this
17Section by a fraction, the numerator of which is base income
18allocable to Illinois and the denominator of which is Illinois
19base income, and further multiplying the product by the tax
20rate imposed by subsections (a) and (b) of this Section.
21    Any credit earned on or after December 31, 1986 under this
22subsection which is unused in the year the credit is computed
23because it exceeds the tax liability imposed by subsections (a)
24and (b) for that year (whether it exceeds the original
25liability or the liability as later amended) may be carried
26forward and applied to the tax liability imposed by subsections

 

 

09800HB0395ham001- 25 -LRB098 03214 HLH 59781 a

1(a) and (b) of the 5 taxable years following the excess credit
2year, provided that no credit may be carried forward to any
3year ending on or after December 31, 2003. This credit shall be
4applied first to the earliest year for which there is a
5liability. If there is a credit under this subsection from more
6than one tax year that is available to offset a liability the
7earliest credit arising under this subsection shall be applied
8first.
9    If, during any taxable year ending on or after December 31,
101986, the tax imposed by subsections (c) and (d) of this
11Section for which a taxpayer has claimed a credit under this
12subsection (i) is reduced, the amount of credit for such tax
13shall also be reduced. Such reduction shall be determined by
14recomputing the credit to take into account the reduced tax
15imposed by subsections (c) and (d). If any portion of the
16reduced amount of credit has been carried to a different
17taxable year, an amended return shall be filed for such taxable
18year to reduce the amount of credit claimed.
19    (j) Training expense credit. Beginning with tax years
20ending on or after December 31, 1986 and prior to December 31,
212003, a taxpayer shall be allowed a credit against the tax
22imposed by subsections (a) and (b) under this Section for all
23amounts paid or accrued, on behalf of all persons employed by
24the taxpayer in Illinois or Illinois residents employed outside
25of Illinois by a taxpayer, for educational or vocational
26training in semi-technical or technical fields or semi-skilled

 

 

09800HB0395ham001- 26 -LRB098 03214 HLH 59781 a

1or skilled fields, which were deducted from gross income in the
2computation of taxable income. The credit against the tax
3imposed by subsections (a) and (b) shall be 1.6% of such
4training expenses. For partners, shareholders of subchapter S
5corporations, and owners of limited liability companies, if the
6liability company is treated as a partnership for purposes of
7federal and State income taxation, there shall be allowed a
8credit under this subsection (j) to be determined in accordance
9with the determination of income and distributive share of
10income under Sections 702 and 704 and subchapter S of the
11Internal Revenue Code.
12    Any credit allowed under this subsection which is unused in
13the year the credit is earned may be carried forward to each of
14the 5 taxable years following the year for which the credit is
15first computed until it is used. This credit shall be applied
16first to the earliest year for which there is a liability. If
17there is a credit under this subsection from more than one tax
18year that is available to offset a liability the earliest
19credit arising under this subsection shall be applied first. No
20carryforward credit may be claimed in any tax year ending on or
21after December 31, 2003.
22    (k) Research and development credit. For tax years ending
23after July 1, 1990 and prior to December 31, 2003, and
24beginning again for tax years ending on or after December 31,
252004, and ending prior to January 1, 2016, a taxpayer shall be
26allowed a credit against the tax imposed by subsections (a) and

 

 

09800HB0395ham001- 27 -LRB098 03214 HLH 59781 a

1(b) of this Section for increasing research activities in this
2State. The credit allowed against the tax imposed by
3subsections (a) and (b) shall be equal to 6 1/2% of the
4qualifying expenditures for increasing research activities in
5this State. For partners, shareholders of subchapter S
6corporations, and owners of limited liability companies, if the
7liability company is treated as a partnership for purposes of
8federal and State income taxation, there shall be allowed a
9credit under this subsection to be determined in accordance
10with the determination of income and distributive share of
11income under Sections 702 and 704 and subchapter S of the
12Internal Revenue Code.
13    For purposes of this subsection, "qualifying expenditures"
14means the qualifying expenditures as defined for the federal
15credit for increasing research activities which would be
16allowable under Section 41 of the Internal Revenue Code and
17which are conducted in this State, "qualifying expenditures for
18increasing research activities in this State" means the excess
19of qualifying expenditures for the taxable year in which
20incurred over qualifying expenditures for the base period,
21"qualifying expenditures for the base period" means the average
22of the qualifying expenditures for each year in the base
23period, and "base period" means the 3 taxable years immediately
24preceding the taxable year for which the determination is being
25made.
26    Any credit in excess of the tax liability for the taxable

 

 

09800HB0395ham001- 28 -LRB098 03214 HLH 59781 a

1year may be carried forward. A taxpayer may elect to have the
2unused credit shown on its final completed return carried over
3as a credit against the tax liability for the following 5
4taxable years or until it has been fully used, whichever occurs
5first; provided that no credit earned in a tax year ending
6prior to December 31, 2003 may be carried forward to any year
7ending on or after December 31, 2003.
8    If an unused credit is carried forward to a given year from
92 or more earlier years, that credit arising in the earliest
10year will be applied first against the tax liability for the
11given year. If a tax liability for the given year still
12remains, the credit from the next earliest year will then be
13applied, and so on, until all credits have been used or no tax
14liability for the given year remains. Any remaining unused
15credit or credits then will be carried forward to the next
16following year in which a tax liability is incurred, except
17that no credit can be carried forward to a year which is more
18than 5 years after the year in which the expense for which the
19credit is given was incurred.
20    No inference shall be drawn from this amendatory Act of the
2191st General Assembly in construing this Section for taxable
22years beginning before January 1, 1999.
23    (l) Environmental Remediation Tax Credit.
24        (i) For tax years ending after December 31, 1997 and on
25    or before December 31, 2001, a taxpayer shall be allowed a
26    credit against the tax imposed by subsections (a) and (b)

 

 

09800HB0395ham001- 29 -LRB098 03214 HLH 59781 a

1    of this Section for certain amounts paid for unreimbursed
2    eligible remediation costs, as specified in this
3    subsection. For purposes of this Section, "unreimbursed
4    eligible remediation costs" means costs approved by the
5    Illinois Environmental Protection Agency ("Agency") under
6    Section 58.14 of the Environmental Protection Act that were
7    paid in performing environmental remediation at a site for
8    which a No Further Remediation Letter was issued by the
9    Agency and recorded under Section 58.10 of the
10    Environmental Protection Act. The credit must be claimed
11    for the taxable year in which Agency approval of the
12    eligible remediation costs is granted. The credit is not
13    available to any taxpayer if the taxpayer or any related
14    party caused or contributed to, in any material respect, a
15    release of regulated substances on, in, or under the site
16    that was identified and addressed by the remedial action
17    pursuant to the Site Remediation Program of the
18    Environmental Protection Act. After the Pollution Control
19    Board rules are adopted pursuant to the Illinois
20    Administrative Procedure Act for the administration and
21    enforcement of Section 58.9 of the Environmental
22    Protection Act, determinations as to credit availability
23    for purposes of this Section shall be made consistent with
24    those rules. For purposes of this Section, "taxpayer"
25    includes a person whose tax attributes the taxpayer has
26    succeeded to under Section 381 of the Internal Revenue Code

 

 

09800HB0395ham001- 30 -LRB098 03214 HLH 59781 a

1    and "related party" includes the persons disallowed a
2    deduction for losses by paragraphs (b), (c), and (f)(1) of
3    Section 267 of the Internal Revenue Code by virtue of being
4    a related taxpayer, as well as any of its partners. The
5    credit allowed against the tax imposed by subsections (a)
6    and (b) shall be equal to 25% of the unreimbursed eligible
7    remediation costs in excess of $100,000 per site, except
8    that the $100,000 threshold shall not apply to any site
9    contained in an enterprise zone as determined by the
10    Department of Commerce and Community Affairs (now
11    Department of Commerce and Economic Opportunity). The
12    total credit allowed shall not exceed $40,000 per year with
13    a maximum total of $150,000 per site. For partners and
14    shareholders of subchapter S corporations, there shall be
15    allowed a credit under this subsection to be determined in
16    accordance with the determination of income and
17    distributive share of income under Sections 702 and 704 and
18    subchapter S of the Internal Revenue Code.
19        (ii) A credit allowed under this subsection that is
20    unused in the year the credit is earned may be carried
21    forward to each of the 5 taxable years following the year
22    for which the credit is first earned until it is used. The
23    term "unused credit" does not include any amounts of
24    unreimbursed eligible remediation costs in excess of the
25    maximum credit per site authorized under paragraph (i).
26    This credit shall be applied first to the earliest year for

 

 

09800HB0395ham001- 31 -LRB098 03214 HLH 59781 a

1    which there is a liability. If there is a credit under this
2    subsection from more than one tax year that is available to
3    offset a liability, the earliest credit arising under this
4    subsection shall be applied first. A credit allowed under
5    this subsection may be sold to a buyer as part of a sale of
6    all or part of the remediation site for which the credit
7    was granted. The purchaser of a remediation site and the
8    tax credit shall succeed to the unused credit and remaining
9    carry-forward period of the seller. To perfect the
10    transfer, the assignor shall record the transfer in the
11    chain of title for the site and provide written notice to
12    the Director of the Illinois Department of Revenue of the
13    assignor's intent to sell the remediation site and the
14    amount of the tax credit to be transferred as a portion of
15    the sale. In no event may a credit be transferred to any
16    taxpayer if the taxpayer or a related party would not be
17    eligible under the provisions of subsection (i).
18        (iii) For purposes of this Section, the term "site"
19    shall have the same meaning as under Section 58.2 of the
20    Environmental Protection Act.
21    (m) Education expense credit. Beginning with tax years
22ending after December 31, 1999, a taxpayer who is the custodian
23of one or more qualifying pupils shall be allowed a credit
24against the tax imposed by subsections (a) and (b) of this
25Section for qualified education expenses incurred on behalf of
26the qualifying pupils. The credit shall be equal to 25% of

 

 

09800HB0395ham001- 32 -LRB098 03214 HLH 59781 a

1qualified education expenses, but in no event may the total
2credit under this subsection claimed by a family that is the
3custodian of qualifying pupils exceed $500. In no event shall a
4credit under this subsection reduce the taxpayer's liability
5under this Act to less than zero. This subsection is exempt
6from the provisions of Section 250 of this Act.
7    For purposes of this subsection:
8    "Qualifying pupils" means individuals who (i) are
9residents of the State of Illinois, (ii) are under the age of
1021 at the close of the school year for which a credit is
11sought, and (iii) during the school year for which a credit is
12sought were full-time pupils enrolled in a kindergarten through
13twelfth grade education program at any school, as defined in
14this subsection.
15    "Qualified education expense" means the amount incurred on
16behalf of a qualifying pupil in excess of $250 for tuition,
17book fees, and lab fees at the school in which the pupil is
18enrolled during the regular school year.
19    "School" means any public or nonpublic elementary or
20secondary school in Illinois that is in compliance with Title
21VI of the Civil Rights Act of 1964 and attendance at which
22satisfies the requirements of Section 26-1 of the School Code,
23except that nothing shall be construed to require a child to
24attend any particular public or nonpublic school to qualify for
25the credit under this Section.
26    "Custodian" means, with respect to qualifying pupils, an

 

 

09800HB0395ham001- 33 -LRB098 03214 HLH 59781 a

1Illinois resident who is a parent, the parents, a legal
2guardian, or the legal guardians of the qualifying pupils.
3    (n) River Edge Redevelopment Zone site remediation tax
4credit.
5        (i) For tax years ending on or after December 31, 2006,
6    a taxpayer shall be allowed a credit against the tax
7    imposed by subsections (a) and (b) of this Section for
8    certain amounts paid for unreimbursed eligible remediation
9    costs, as specified in this subsection. For purposes of
10    this Section, "unreimbursed eligible remediation costs"
11    means costs approved by the Illinois Environmental
12    Protection Agency ("Agency") under Section 58.14a of the
13    Environmental Protection Act that were paid in performing
14    environmental remediation at a site within a River Edge
15    Redevelopment Zone for which a No Further Remediation
16    Letter was issued by the Agency and recorded under Section
17    58.10 of the Environmental Protection Act. The credit must
18    be claimed for the taxable year in which Agency approval of
19    the eligible remediation costs is granted. The credit is
20    not available to any taxpayer if the taxpayer or any
21    related party caused or contributed to, in any material
22    respect, a release of regulated substances on, in, or under
23    the site that was identified and addressed by the remedial
24    action pursuant to the Site Remediation Program of the
25    Environmental Protection Act. Determinations as to credit
26    availability for purposes of this Section shall be made

 

 

09800HB0395ham001- 34 -LRB098 03214 HLH 59781 a

1    consistent with rules adopted by the Pollution Control
2    Board pursuant to the Illinois Administrative Procedure
3    Act for the administration and enforcement of Section 58.9
4    of the Environmental Protection Act. For purposes of this
5    Section, "taxpayer" includes a person whose tax attributes
6    the taxpayer has succeeded to under Section 381 of the
7    Internal Revenue Code and "related party" includes the
8    persons disallowed a deduction for losses by paragraphs
9    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
10    Code by virtue of being a related taxpayer, as well as any
11    of its partners. The credit allowed against the tax imposed
12    by subsections (a) and (b) shall be equal to 25% of the
13    unreimbursed eligible remediation costs in excess of
14    $100,000 per site.
15        (ii) A credit allowed under this subsection that is
16    unused in the year the credit is earned may be carried
17    forward to each of the 5 taxable years following the year
18    for which the credit is first earned until it is used. This
19    credit shall be applied first to the earliest year for
20    which there is a liability. If there is a credit under this
21    subsection from more than one tax year that is available to
22    offset a liability, the earliest credit arising under this
23    subsection shall be applied first. A credit allowed under
24    this subsection may be sold to a buyer as part of a sale of
25    all or part of the remediation site for which the credit
26    was granted. The purchaser of a remediation site and the

 

 

09800HB0395ham001- 35 -LRB098 03214 HLH 59781 a

1    tax credit shall succeed to the unused credit and remaining
2    carry-forward period of the seller. To perfect the
3    transfer, the assignor shall record the transfer in the
4    chain of title for the site and provide written notice to
5    the Director of the Illinois Department of Revenue of the
6    assignor's intent to sell the remediation site and the
7    amount of the tax credit to be transferred as a portion of
8    the sale. In no event may a credit be transferred to any
9    taxpayer if the taxpayer or a related party would not be
10    eligible under the provisions of subsection (i).
11        (iii) For purposes of this Section, the term "site"
12    shall have the same meaning as under Section 58.2 of the
13    Environmental Protection Act.
14    (o) For each of taxable years during the Compassionate Use
15of Medical Cannabis Pilot Program, a surcharge is imposed on
16all taxpayers on income arising from the sale or exchange of
17capital assets, depreciable business property, real property
18used in the trade or business, and Section 197 intangibles of
19an organization registrant under the Compassionate Use of
20Medical Cannabis Pilot Program Act. The amount of the surcharge
21is equal to the amount of federal income tax liability for the
22taxable year attributable to those sales and exchanges. The
23surcharge imposed does not apply if:
24        (1) the medical cannabis cultivation center
25    registration, medical cannabis dispensary registration, or
26    the property of a registration is transferred as a result

 

 

09800HB0395ham001- 36 -LRB098 03214 HLH 59781 a

1    of any of the following:
2            (A) bankruptcy, a receivership, or a debt
3        adjustment initiated by or against the initial
4        registration or the substantial owners of the initial
5        registration;
6            (B) cancellation, revocation, or termination of
7        any registration by the Illinois Department of Public
8        Health;
9            (C) a determination by the Illinois Department of
10        Public Health that transfer of the registration is in
11        the best interests of Illinois qualifying patients as
12        defined by the Compassionate Use of Medical Cannabis
13        Pilot Program Act;
14            (D) the death of an owner of the equity interest in
15        a registrant;
16            (E) the acquisition of a controlling interest in
17        the stock or substantially all of the assets of a
18        publicly traded company;
19            (F) a transfer by a parent company to a wholly
20        owned subsidiary; or
21            (G) the transfer or sale to or by one person to
22        another person where both persons were initial owners
23        of the registration when the registration was issued;
24        or
25        (2) the cannabis cultivation center registration,
26    medical cannabis dispensary registration, or the

 

 

09800HB0395ham001- 37 -LRB098 03214 HLH 59781 a

1    controlling interest in a registrant's property is
2    transferred in a transaction to lineal descendants in which
3    no gain or loss is recognized or as a result of a
4    transaction in accordance with Section 351 of the Internal
5    Revenue Code in which no gain or loss is recognized.
6(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
7eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; revised
88-9-13.)
 
9    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
10    Sec. 901. Collection Authority.
11    (a) In general.
12    The Department shall collect the taxes imposed by this Act.
13The Department shall collect certified past due child support
14amounts under Section 2505-650 of the Department of Revenue Law
15(20 ILCS 2505/2505-650). Except as provided in subsections (c),
16(e), (f), and (g) of this Section, money collected pursuant to
17subsections (a) and (b) of Section 201 of this Act shall be
18paid into the General Revenue Fund in the State treasury; money
19collected pursuant to subsections (c) and (d) of Section 201 of
20this Act shall be paid into the Personal Property Tax
21Replacement Fund, a special fund in the State Treasury; and
22money collected under Section 2505-650 of the Department of
23Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
24Child Support Enforcement Trust Fund, a special fund outside
25the State Treasury, or to the State Disbursement Unit

 

 

09800HB0395ham001- 38 -LRB098 03214 HLH 59781 a

1established under Section 10-26 of the Illinois Public Aid
2Code, as directed by the Department of Healthcare and Family
3Services.
4    (b) Local Government Distributive Fund.
5    Beginning August 1, 1969, and continuing through June 30,
61994, the Treasurer shall transfer each month from the General
7Revenue Fund to a special fund in the State treasury, to be
8known as the "Local Government Distributive Fund", an amount
9equal to 1/12 of the net revenue realized from the tax imposed
10by subsections (a) and (b) of Section 201 of this Act during
11the preceding month. Beginning July 1, 1994, and continuing
12through June 30, 1995, the Treasurer shall transfer each month
13from the General Revenue Fund to the Local Government
14Distributive Fund an amount equal to 1/11 of the net revenue
15realized from the tax imposed by subsections (a) and (b) of
16Section 201 of this Act during the preceding month. Beginning
17July 1, 1995 and continuing through January 31, 2011, the
18Treasurer shall transfer each month from the General Revenue
19Fund to the Local Government Distributive Fund an amount equal
20to the net of (i) 1/10 of the net revenue realized from the tax
21imposed by subsections (a) and (b) of Section 201 of the
22Illinois Income Tax Act during the preceding month (ii) minus,
23beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
24and beginning July 1, 2004, zero. Beginning February 1, 2011,
25and continuing through January 31, 2015, the Treasurer shall
26transfer each month from the General Revenue Fund to the Local

 

 

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1Government Distributive Fund an amount equal to the sum of (i)
26% (10% of the ratio of the 3% individual income tax rate prior
3to 2011 to the 5% individual income tax rate after 2010) of the
4net revenue realized from the tax imposed by subsections (a)
5and (b) of Section 201 of this Act upon individuals, trusts,
6and estates during the preceding month and (ii) 6.86% (10% of
7the ratio of the 4.8% corporate income tax rate prior to 2011
8to the 7% corporate income tax rate after 2010) of the net
9revenue realized from the tax imposed by subsections (a) and
10(b) of Section 201 of this Act upon corporations during the
11preceding month. Beginning February 1, 2015 and continuing
12through January 31, 2025, the Treasurer shall transfer each
13month from the General Revenue Fund to the Local Government
14Distributive Fund an amount equal to the sum of (i) 8% (10% of
15the ratio of the 3% individual income tax rate prior to 2011 to
16the 3.75% individual income tax rate after 2014) of the net
17revenue realized from the tax imposed by subsections (a) and
18(b) of Section 201 of this Act upon individuals, trusts, and
19estates during the preceding month and (ii) 9.14% (10% of the
20ratio of the 4.8% corporate income tax rate prior to 2011 to
21the 5.25% corporate income tax rate after 2014) of the net
22revenue realized from the tax imposed by subsections (a) and
23(b) of Section 201 of this Act upon corporations during the
24preceding month. Beginning February 1, 2025, the Treasurer
25shall transfer each month from the General Revenue Fund to the
26Local Government Distributive Fund an amount equal to the sum

 

 

09800HB0395ham001- 40 -LRB098 03214 HLH 59781 a

1of (i) 9.23% (10% of the ratio of the 3% individual income tax
2rate prior to 2011 to the 3.25% individual income tax rate
3after 2024) of the net revenue realized from the tax imposed by
4subsections (a) and (b) of Section 201 of this Act upon
5individuals, trusts, and estates during the preceding month and
6(ii) 10% of the net revenue realized from the tax imposed by
7subsections (a) and (b) of Section 201 of this Act upon
8corporations during the preceding month. Net revenue realized
9for a month shall be defined as the revenue from the tax
10imposed by subsections (a) and (b) of Section 201 of this Act
11which is deposited in the General Revenue Fund, the Education
12Assistance Fund, the Income Tax Surcharge Local Government
13Distributive Fund, the Fund for the Advancement of Education,
14and the Commitment to Human Services Fund during the month
15minus the amount paid out of the General Revenue Fund in State
16warrants during that same month as refunds to taxpayers for
17overpayment of liability under the tax imposed by subsections
18(a) and (b) of Section 201 of this Act.
19    (c) Deposits Into Income Tax Refund Fund.
20        (1) Beginning on January 1, 1989 and thereafter, the
21    Department shall deposit a percentage of the amounts
22    collected pursuant to subsections (a) and (b)(1), (2), and
23    (3), (4), and (5) of Section 201 of this Act into a fund in
24    the State treasury known as the Income Tax Refund Fund. The
25    Department shall deposit 6% of such amounts during the
26    period beginning January 1, 1989 and ending on June 30,

 

 

09800HB0395ham001- 41 -LRB098 03214 HLH 59781 a

1    1989. Beginning with State fiscal year 1990 and for each
2    fiscal year thereafter, the percentage deposited into the
3    Income Tax Refund Fund during a fiscal year shall be the
4    Annual Percentage. For fiscal years 1999 through 2001, the
5    Annual Percentage shall be 7.1%. For fiscal year 2003, the
6    Annual Percentage shall be 8%. For fiscal year 2004, the
7    Annual Percentage shall be 11.7%. Upon the effective date
8    of this amendatory Act of the 93rd General Assembly, the
9    Annual Percentage shall be 10% for fiscal year 2005. For
10    fiscal year 2006, the Annual Percentage shall be 9.75%. For
11    fiscal year 2007, the Annual Percentage shall be 9.75%. For
12    fiscal year 2008, the Annual Percentage shall be 7.75%. For
13    fiscal year 2009, the Annual Percentage shall be 9.75%. For
14    fiscal year 2010, the Annual Percentage shall be 9.75%. For
15    fiscal year 2011, the Annual Percentage shall be 8.75%. For
16    fiscal year 2012, the Annual Percentage shall be 8.75%. For
17    fiscal year 2013, the Annual Percentage shall be 9.75%. For
18    fiscal year 2014, the Annual Percentage shall be 9.5%. For
19    all other fiscal years, the Annual Percentage shall be
20    calculated as a fraction, the numerator of which shall be
21    the amount of refunds approved for payment by the
22    Department during the preceding fiscal year as a result of
23    overpayment of tax liability under subsections (a) and
24    (b)(1), (2), and (3), (4), and (5) of Section 201 of this
25    Act plus the amount of such refunds remaining approved but
26    unpaid at the end of the preceding fiscal year, minus the

 

 

09800HB0395ham001- 42 -LRB098 03214 HLH 59781 a

1    amounts transferred into the Income Tax Refund Fund from
2    the Tobacco Settlement Recovery Fund, and the denominator
3    of which shall be the amounts which will be collected
4    pursuant to subsections (a) and (b)(1), (2), and (3), (4),
5    and (5) of Section 201 of this Act during the preceding
6    fiscal year; except that in State fiscal year 2002, the
7    Annual Percentage shall in no event exceed 7.6%. The
8    Director of Revenue shall certify the Annual Percentage to
9    the Comptroller on the last business day of the fiscal year
10    immediately preceding the fiscal year for which it is to be
11    effective.
12        (2) Beginning on January 1, 1989 and thereafter, the
13    Department shall deposit a percentage of the amounts
14    collected pursuant to subsections (a), and (b)(6), (7), and
15    (8), (9), and (10), (c), and (d) of Section 201 of this Act
16    into a fund in the State treasury known as the Income Tax
17    Refund Fund. The Department shall deposit 18% of such
18    amounts during the period beginning January 1, 1989 and
19    ending on June 30, 1989. Beginning with State fiscal year
20    1990 and for each fiscal year thereafter, the percentage
21    deposited into the Income Tax Refund Fund during a fiscal
22    year shall be the Annual Percentage. For fiscal years 1999,
23    2000, and 2001, the Annual Percentage shall be 19%. For
24    fiscal year 2003, the Annual Percentage shall be 27%. For
25    fiscal year 2004, the Annual Percentage shall be 32%. Upon
26    the effective date of this amendatory Act of the 93rd

 

 

09800HB0395ham001- 43 -LRB098 03214 HLH 59781 a

1    General Assembly, the Annual Percentage shall be 24% for
2    fiscal year 2005. For fiscal year 2006, the Annual
3    Percentage shall be 20%. For fiscal year 2007, the Annual
4    Percentage shall be 17.5%. For fiscal year 2008, the Annual
5    Percentage shall be 15.5%. For fiscal year 2009, the Annual
6    Percentage shall be 17.5%. For fiscal year 2010, the Annual
7    Percentage shall be 17.5%. For fiscal year 2011, the Annual
8    Percentage shall be 17.5%. For fiscal year 2012, the Annual
9    Percentage shall be 17.5%. For fiscal year 2013, the Annual
10    Percentage shall be 14%. For fiscal year 2014, the Annual
11    Percentage shall be 13.4%. For all other fiscal years, the
12    Annual Percentage shall be calculated as a fraction, the
13    numerator of which shall be the amount of refunds approved
14    for payment by the Department during the preceding fiscal
15    year as a result of overpayment of tax liability under
16    subsections (a), and (b)(6), (7), and (8), (9), and 10,
17    (c), and (d) of Section 201 of this Act plus the amount of
18    such refunds remaining approved but unpaid at the end of
19    the preceding fiscal year, and the denominator of which
20    shall be the amounts which will be collected pursuant to
21    subsections (a), and (b)(6), (7), and (8), (9), and (10)
22    (c), and (d) of Section 201 of this Act during the
23    preceding fiscal year; except that in State fiscal year
24    2002, the Annual Percentage shall in no event exceed 23%.
25    The Director of Revenue shall certify the Annual Percentage
26    to the Comptroller on the last business day of the fiscal

 

 

09800HB0395ham001- 44 -LRB098 03214 HLH 59781 a

1    year immediately preceding the fiscal year for which it is
2    to be effective.
3        (3) The Comptroller shall order transferred and the
4    Treasurer shall transfer from the Tobacco Settlement
5    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
6    in January, 2001, (ii) $35,000,000 in January, 2002, and
7    (iii) $35,000,000 in January, 2003.
8    (d) Expenditures from Income Tax Refund Fund.
9        (1) Beginning January 1, 1989, money in the Income Tax
10    Refund Fund shall be expended exclusively for the purpose
11    of paying refunds resulting from overpayment of tax
12    liability under Section 201 of this Act, for paying rebates
13    under Section 208.1 in the event that the amounts in the
14    Homeowners' Tax Relief Fund are insufficient for that
15    purpose, and for making transfers pursuant to this
16    subsection (d).
17        (2) The Director shall order payment of refunds
18    resulting from overpayment of tax liability under Section
19    201 of this Act from the Income Tax Refund Fund only to the
20    extent that amounts collected pursuant to Section 201 of
21    this Act and transfers pursuant to this subsection (d) and
22    item (3) of subsection (c) have been deposited and retained
23    in the Fund.
24        (3) As soon as possible after the end of each fiscal
25    year, the Director shall order transferred and the State
26    Treasurer and State Comptroller shall transfer from the

 

 

09800HB0395ham001- 45 -LRB098 03214 HLH 59781 a

1    Income Tax Refund Fund to the Personal Property Tax
2    Replacement Fund an amount, certified by the Director to
3    the Comptroller, equal to the excess of the amount
4    collected pursuant to subsections (c) and (d) of Section
5    201 of this Act deposited into the Income Tax Refund Fund
6    during the fiscal year over the amount of refunds resulting
7    from overpayment of tax liability under subsections (c) and
8    (d) of Section 201 of this Act paid from the Income Tax
9    Refund Fund during the fiscal year.
10        (4) As soon as possible after the end of each fiscal
11    year, the Director shall order transferred and the State
12    Treasurer and State Comptroller shall transfer from the
13    Personal Property Tax Replacement Fund to the Income Tax
14    Refund Fund an amount, certified by the Director to the
15    Comptroller, equal to the excess of the amount of refunds
16    resulting from overpayment of tax liability under
17    subsections (c) and (d) of Section 201 of this Act paid
18    from the Income Tax Refund Fund during the fiscal year over
19    the amount collected pursuant to subsections (c) and (d) of
20    Section 201 of this Act deposited into the Income Tax
21    Refund Fund during the fiscal year.
22        (4.5) As soon as possible after the end of fiscal year
23    1999 and of each fiscal year thereafter, the Director shall
24    order transferred and the State Treasurer and State
25    Comptroller shall transfer from the Income Tax Refund Fund
26    to the General Revenue Fund any surplus remaining in the

 

 

09800HB0395ham001- 46 -LRB098 03214 HLH 59781 a

1    Income Tax Refund Fund as of the end of such fiscal year;
2    excluding for fiscal years 2000, 2001, and 2002 amounts
3    attributable to transfers under item (3) of subsection (c)
4    less refunds resulting from the earned income tax credit.
5        (5) This Act shall constitute an irrevocable and
6    continuing appropriation from the Income Tax Refund Fund
7    for the purpose of paying refunds upon the order of the
8    Director in accordance with the provisions of this Section.
9    (e) Deposits into the Education Assistance Fund and the
10Income Tax Surcharge Local Government Distributive Fund.
11    On July 1, 1991, and thereafter, of the amounts collected
12pursuant to subsections (a) and (b) of Section 201 of this Act,
13minus deposits into the Income Tax Refund Fund, the Department
14shall deposit 7.3% into the Education Assistance Fund in the
15State Treasury. Beginning July 1, 1991, and continuing through
16January 31, 1993, of the amounts collected pursuant to
17subsections (a) and (b) of Section 201 of the Illinois Income
18Tax Act, minus deposits into the Income Tax Refund Fund, the
19Department shall deposit 3.0% into the Income Tax Surcharge
20Local Government Distributive Fund in the State Treasury.
21Beginning February 1, 1993 and continuing through June 30,
221993, of the amounts collected pursuant to subsections (a) and
23(b) of Section 201 of the Illinois Income Tax Act, minus
24deposits into the Income Tax Refund Fund, the Department shall
25deposit 4.4% into the Income Tax Surcharge Local Government
26Distributive Fund in the State Treasury. Beginning July 1,

 

 

09800HB0395ham001- 47 -LRB098 03214 HLH 59781 a

11993, and continuing through June 30, 1994, of the amounts
2collected under subsections (a) and (b) of Section 201 of this
3Act, minus deposits into the Income Tax Refund Fund, the
4Department shall deposit 1.475% into the Income Tax Surcharge
5Local Government Distributive Fund in the State Treasury.
6    (f) Deposits into the Fund for the Advancement of
7Education. Beginning February 1, 2015, the Department shall
8deposit 1/40 the following portions of the revenue realized
9from the tax imposed upon individuals, trusts, and estates by
10subsections (a) and (b) of Section 201 of this Act during the
11preceding month, minus deposits into the Income Tax Refund
12Fund, into the Fund for the Advancement of Education. :
13        (1) beginning February 1, 2015, and prior to February
14    1, 2025, 1/30; and
15        (2) beginning February 1, 2025, 1/26.
16    If the rate of tax imposed by subsection (a) and (b) of
17Section 201 is reduced pursuant to Section 201.5 of this Act,
18the Department shall not make the deposits required by this
19subsection (f) on or after the effective date of the reduction.
20    (g) Deposits into the Commitment to Human Services Fund.
21Beginning February 1, 2015, the Department shall deposit 1/40
22the following portions of the revenue realized from the tax
23imposed upon individuals, trusts, and estates by subsections
24(a) and (b) of Section 201 of this Act during the preceding
25month, minus deposits into the Income Tax Refund Fund, into the
26Commitment to Human Services Fund. :

 

 

09800HB0395ham001- 48 -LRB098 03214 HLH 59781 a

1        (1) beginning February 1, 2015, and prior to February
2    1, 2025, 1/30; and
3        (2) beginning February 1, 2025, 1/26.
4    If the rate of tax imposed by subsection (a) and (b) of
5Section 201 is reduced pursuant to Section 201.5 of this Act,
6the Department shall not make the deposits required by this
7subsection (g) on or after the effective date of the reduction.
8(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
9eff. 6-19-13.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".