State of Illinois
92nd General Assembly
Legislation

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92_HB4903

 
                                               LRB9214414SMsb

 1        AN ACT in relation to taxes.

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

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

 6        (35 ILCS 5/207) (from Ch. 120, par. 2-207)
 7        Sec. 207.  Net losses Losses.
 8        (a)  If  after applying all of the modifications provided
 9    for in paragraph (2) of  Section  203(b),  paragraph  (2)  of
10    Section  203(c)  and  paragraph (2) of Section 203(d) and the
11    allocation and apportionment provisions of Article 3 of  this
12    Act, the taxpayer's net income results in a loss;
13             (1)  for  any  taxable year ending prior to December
14        31, 1999, such loss shall be allowed as  a  carryover  or
15        carryback  deduction  in the manner allowed under Section
16        172 of the Internal Revenue Code; and
17             (2)  for  any  taxable  year  ending  on  or   after
18        December  31,  1999,  such  loss  shall  be  allowed as a
19        carryback to each of the 2 taxable  years  preceding  the
20        taxable  year  of  such loss and shall be a net operating
21        carryover to each of the 20 taxable years  following  the
22        taxable year of such loss.
23                  (A)  The  taxpayer  may elect to relinquish the
24             entire carryback period with respect to  such  loss.
25             Such  election  shall be made in the form and manner
26             prescribed by the Department and shall  be  made  by
27             the  due  date  (including  extensions  of time) for
28             filing the taxpayer's return for the taxable year in
29             which such loss is incurred, and such election, once
30             made, shall be irrevocable.
31                  (B)  The entire amount of such  loss  shall  be
 
                            -2-                LRB9214414SMsb
 1             carried  to  the earliest taxable year to which such
 2             loss may be carried.  The amount of such loss  which
 3             shall  be carried to each of the other taxable years
 4             shall be the excess, if any, of the amount  of  such
 5             loss over the sum of the deductions for carryback or
 6             carryover  of  such  loss  allowable for each of the
 7             prior taxable  years  to  which  such  loss  may  be
 8             carried.
 9        (b)  Any  loss  determined  under  subsection (a) of this
10    Section must be carried back or carried forward in  the  same
11    manner for purposes of subsections (a) and (b) of Section 201
12    of  this  Act  as  for purposes of subsections (c) and (d) of
13    Section 201 of this Act.
14    (Source: P.A. 91-541, eff. 8-13-99.)

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