Full Text of SB2330 103rd General Assembly
SB2330 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB2330 Introduced 2/10/2023, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED: |
| 35 ILCS 5/207 | from Ch. 120, par. 2-207 |
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Amends the Illinois Income Tax Act. Provides that no carryover deduction shall exceed $100,000 for any taxable year ending on or after December 31, 2021 and ending prior to December 31, 2023 (currently, December 31, 2024). Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 207 as follows:
| 6 | | (35 ILCS 5/207) (from Ch. 120, par. 2-207)
| 7 | | Sec. 207. Net Losses.
| 8 | | (a) If after applying all of the (i) modifications
| 9 | | provided for in paragraph (2) of Section 203(b), paragraph (2) | 10 | | of Section
203(c) and paragraph (2) of Section 203(d) and (ii) | 11 | | the allocation and
apportionment provisions of Article 3 of | 12 | | this
Act and subsection (c) of this Section, the taxpayer's | 13 | | net income results in a loss;
| 14 | | (1) for any taxable year ending prior to December 31, | 15 | | 1999, such loss
shall be allowed
as a carryover or | 16 | | carryback deduction in the manner allowed under Section
| 17 | | 172 of the Internal Revenue Code;
| 18 | | (2) for any taxable year ending on or after December | 19 | | 31, 1999 and prior
to December 31, 2003, such loss
shall be | 20 | | allowed as a carryback to each of the 2 taxable years | 21 | | preceding the
taxable year of such loss and shall be a net | 22 | | operating loss carryover to each of the
20 taxable years | 23 | | following the taxable year of such loss;
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| 1 | | (3) for any taxable year ending on or after December | 2 | | 31, 2003 and prior to December 31, 2021, such loss
shall be | 3 | | allowed as a net operating loss carryover to each of the 12 | 4 | | taxable years
following the taxable year of such loss, | 5 | | except as provided in subsection (d); and
| 6 | | (4) for any taxable year ending on or after December
| 7 | | 31, 2021, and for any net loss incurred in a taxable year | 8 | | prior to a taxable year ending on or after December
31, | 9 | | 2021 for which the statute of limitation for utilization | 10 | | of such net loss has not expired, such loss shall be | 11 | | allowed as a net operating loss carryover to each of the 20 | 12 | | taxable years following the taxable year of such loss, | 13 | | except as provided in subsection (d). | 14 | | (a-5) Election to relinquish carryback and order of | 15 | | application of
losses.
| 16 | | (A) For losses incurred in tax years ending prior | 17 | | to December 31,
2003, the taxpayer may elect to | 18 | | relinquish the entire carryback period
with respect to | 19 | | such loss. Such election shall be made in the form and | 20 | | manner
prescribed by the Department and shall be made | 21 | | by the due date (including
extensions of time) for | 22 | | filing the taxpayer's return for the taxable year in
| 23 | | which such loss is incurred, and such election, once | 24 | | made, shall be
irrevocable.
| 25 | | (B) The entire amount of such loss shall be | 26 | | carried to the earliest
taxable year to which such |
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| 1 | | loss may be carried. The amount of such loss which
| 2 | | shall be carried to each of the other taxable years | 3 | | shall be the excess, if
any, of the amount of such loss | 4 | | over the sum of the deductions for carryback or
| 5 | | carryover of such loss allowable for each of the prior | 6 | | taxable years to which
such loss may be carried.
| 7 | | (b) Any loss determined under subsection (a) of this | 8 | | Section must be carried
back or carried forward in the same | 9 | | manner for purposes of subsections (a)
and (b) of Section 201 | 10 | | of this Act as for purposes of subsections (c) and
(d) of | 11 | | Section 201 of this Act.
| 12 | | (c) Notwithstanding any other provision of this Act, for | 13 | | each taxable year ending on or after December 31, 2008, for | 14 | | purposes of computing the loss for the taxable year under | 15 | | subsection (a) of this Section and the deduction taken into | 16 | | account for the taxable year for a net operating loss | 17 | | carryover under paragraphs (1), (2), and (3) of subsection (a) | 18 | | of this Section, the loss and net operating loss carryover | 19 | | shall be reduced in an amount equal to the reduction to the net | 20 | | operating loss and net operating loss carryover to the taxable | 21 | | year, respectively, required under Section 108(b)(2)(A) of the | 22 | | Internal Revenue Code, multiplied by a fraction, the numerator | 23 | | of which is the amount of discharge of indebtedness income | 24 | | that is excluded from gross income for the taxable year (but | 25 | | only if the taxable year ends on or after December 31, 2008) | 26 | | under Section 108(a) of the Internal Revenue Code and that |
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| 1 | | would have been allocated and apportioned to this State under | 2 | | Article 3 of this Act but for that exclusion, and the | 3 | | denominator of which is the total amount of discharge of | 4 | | indebtedness income excluded from gross income under Section | 5 | | 108(a) of the Internal Revenue Code for the taxable year. The | 6 | | reduction required under this subsection (c) shall be made | 7 | | after the determination of Illinois net income for the taxable | 8 | | year in which the indebtedness is discharged.
| 9 | | (d) In the case of a corporation (other than a Subchapter S | 10 | | corporation), no carryover deduction shall be allowed under | 11 | | this Section for any taxable year ending after December 31, | 12 | | 2010 and prior to December 31, 2012, and no carryover | 13 | | deduction shall exceed $100,000 for any taxable year ending on | 14 | | or after December 31, 2012 and prior to December 31, 2014 and | 15 | | for any taxable year ending on or after December 31, 2021 and | 16 | | prior to December 31, 2023 December 31, 2024 ; provided that, | 17 | | for purposes of determining the taxable years to which a net | 18 | | loss may be carried under subsection (a) of this Section, no | 19 | | taxable year for which a deduction is disallowed under this | 20 | | subsection, or for which the deduction would exceed $100,000 | 21 | | if not for this subsection, shall be counted. | 22 | | (e) In the case of a residual interest holder in a real | 23 | | estate mortgage investment conduit subject to Section 860E of | 24 | | the Internal Revenue Code, the net loss in subsection (a) | 25 | | shall be equal to: | 26 | | (1) the amount computed under subsection (a), without |
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| 1 | | regard to this subsection (e), or if that amount is | 2 | | positive, zero; | 3 | | (2) minus an amount equal to the amount computed under | 4 | | subsection (a), without regard to this subsection (e), | 5 | | minus the amount that would be computed under subsection | 6 | | (a) if the taxpayer's federal taxable income were computed | 7 | | without regard to Section 860E of the Internal Revenue | 8 | | Code and without regard to this subsection (e). | 9 | | The modification in this subsection (e) is exempt from the | 10 | | provisions of Section 250. | 11 | | (Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.
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