Bill Amendment: IL SB0316 | 2017-2018 | 100th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: REGULATION-TECH
Status: 2019-01-09 - Session Sine Die [SB0316 Detail]
Download: Illinois-2017-SB0316-Senate_Amendment_001.html
Bill Title: REGULATION-TECH
Status: 2019-01-09 - Session Sine Die [SB0316 Detail]
Download: Illinois-2017-SB0316-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 316
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2 | AMENDMENT NO. ______. Amend Senate Bill 316 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Cannabis Regulation and Taxation Act.
| ||||||
6 | Section 5. Purpose and findings.
| ||||||
7 | (a) In the interest of allowing law enforcement to focus on
| ||||||
8 | violent and property crimes, generating revenue for education
| ||||||
9 | and other public purposes, and individual freedom, the General | ||||||
10 | Assembly finds and declares that the use of cannabis should be
| ||||||
11 | legal for persons 21 years of age or older and taxed in a | ||||||
12 | manner
similar to alcohol. | ||||||
13 | (b) In the interest of the health and public safety of our
| ||||||
14 | citizenry, the General Assembly further finds and
declares that | ||||||
15 | cannabis should be regulated in a manner similar
to alcohol so | ||||||
16 | that: |
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1 | (1) individuals will have to show proof of age before | ||||||
2 | purchasing
cannabis; | ||||||
3 | (2) selling, distributing, or transferring cannabis to | ||||||
4 | minors
and other individuals under 21 years of age shall | ||||||
5 | remain illegal; | ||||||
6 | (3) driving under the influence of cannabis shall | ||||||
7 | remain
illegal; | ||||||
8 | (4) legitimate, taxpaying business people, and not | ||||||
9 | criminal
actors, will conduct sales of cannabis; and | ||||||
10 | (5) cannabis sold in this State will be tested, | ||||||
11 | labeled, and
subject to additional regulations to ensure | ||||||
12 | that consumers are
informed and protected. | ||||||
13 | (c) In the interest of enacting rational policies for the
| ||||||
14 | treatment of all variations of the cannabis plant, the General | ||||||
15 | Assembly further finds and declares that hemp should be | ||||||
16 | regulated
separately from strains of cannabis with higher | ||||||
17 | delta-9
tetrahydrocannabinol (THC) concentrations. | ||||||
18 | (d) The General Assembly further finds and declares that it | ||||||
19 | is
necessary to ensure consistency and fairness in the | ||||||
20 | application
of this Act throughout the State and that, | ||||||
21 | therefore, the
matters addressed by this Act are, except as | ||||||
22 | specified
in this Act, matters of statewide concern.
| ||||||
23 | Section 10. Definitions.
As used in this Act: | ||||||
24 | "Cannabis" has the meaning given that term in Section 3 of | ||||||
25 | the Cannabis Control Act. "Cannabis" does not include
hemp, nor |
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1 | does it include fiber produced from the stalks, oil or
cake | ||||||
2 | made from the seeds of the plant, sterilized seed of the
plant | ||||||
3 | which is incapable of germination, or the weight of any
other | ||||||
4 | ingredient combined with cannabis to prepare topical or
oral | ||||||
5 | administrations, food, drink, or other product. | ||||||
6 | "Cannabis accessories" means any equipment, products, or
| ||||||
7 | materials of any kind which are used, intended for use, or
| ||||||
8 | designed for use in planting, propagating, cultivating, | ||||||
9 | growing,
harvesting, composting, manufacturing, compounding, | ||||||
10 | converting,
producing, processing, preparing, testing, | ||||||
11 | analyzing, packaging,
repackaging, storing, vaporizing, or | ||||||
12 | containing cannabis, or
for ingesting, inhaling, or otherwise | ||||||
13 | introducing cannabis into
the human body. | ||||||
14 | "Cannabis cultivation facility" means an entity registered
| ||||||
15 | to cultivate, prepare, and package cannabis and sell cannabis
| ||||||
16 | to retail cannabis stores, to cannabis product manufacturing
| ||||||
17 | facilities, to on-site consumption establishments, and to | ||||||
18 | other cannabis
cultivation facilities, but not to consumers. A | ||||||
19 | cannabis
cultivation facility may not produce cannabis | ||||||
20 | concentrates,
tinctures, extracts, or other cannabis products. | ||||||
21 | "Cannabis establishment" means a cannabis cultivation
| ||||||
22 | facility, an on-site consumption establishment, a cannabis | ||||||
23 | testing facility, a
cannabis product manufacturing facility, | ||||||
24 | or a retail cannabis
store. | ||||||
25 | "Cannabis product manufacturing facility" means an entity
| ||||||
26 | registered to purchase cannabis; manufacture, prepare, and
|
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| |||||||
1 | package cannabis products; and sell cannabis and cannabis
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2 | products to cannabis product manufacturing facilities,
on-site | ||||||
3 | consumption establishments, and retail cannabis stores, but | ||||||
4 | not to
consumers. | ||||||
5 | "Cannabis products" means concentrated cannabis products
| ||||||
6 | and cannabis products that are comprised of cannabis and other
| ||||||
7 | ingredients which are intended for use or consumption, | ||||||
8 | including,
but not limited to, edible products, ointments, and | ||||||
9 | tinctures. | ||||||
10 | "Cannabis testing facility" means an entity registered to
| ||||||
11 | test cannabis for potency and contaminants. | ||||||
12 | "Consumer" means a person 21 years of age or older who
| ||||||
13 | purchases cannabis or cannabis products for personal use by
| ||||||
14 | persons 21 years of age or older, but not for resale. | ||||||
15 | "Department" means the Department of Public Health or its
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16 | successor agency. | ||||||
17 | "Immature cannabis plant" means a cannabis plant that has
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18 | not flowered and which does not have buds that may be observed
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19 | by visual examination. | ||||||
20 | "Hemp" means the plant of the genus cannabis and any part | ||||||
21 | of
that plant, whether growing or not, with a delta-9
| ||||||
22 | tetrahydrocannabinol concentration that does not exceed | ||||||
23 | three-tenths
percent on a dry weight basis of any part of the | ||||||
24 | plant
cannabis, or per volume or weight of cannabis product, or | ||||||
25 | the
combined percent of delta-9 tetrahydrocannabinol and
| ||||||
26 | tetrahydrocannabinolic acid in any part of the plant cannabis
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| |||||||
1 | regardless of moisture content. | ||||||
2 | "Local regulatory authority" means the office or entity
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3 | designated to process cannabis establishment applications by a
| ||||||
4 | municipality or, in reference to a location outside the
| ||||||
5 | boundaries of a municipality, a county. | ||||||
6 | "On-site consumption establishment" means an entity | ||||||
7 | registered to sell cannabis or cannabis products for on-site | ||||||
8 | consumption by means other than smoking. | ||||||
9 | "Possession limit" means the following amount of cannabis | ||||||
10 | that may be
possessed at any one time by a person 21 years of | ||||||
11 | age or older: | ||||||
12 | (1) for a resident of this State, the possession limit is
| ||||||
13 | no more than: | ||||||
14 | (i) 28 grams of cannabis, no more than 5 grams of which
| ||||||
15 | may be concentrated cannabis; | ||||||
16 | (ii) 5 cannabis plants; and | ||||||
17 | (iii) any additional cannabis produced by the person's
| ||||||
18 | cannabis plants; provided that any amount of cannabis in
| ||||||
19 | excess of 28 grams of cannabis must be possessed in the | ||||||
20 | same
secure facility where the plants were cultivated; and
| ||||||
21 | (2) for a person who is not a resident of this State,
the | ||||||
22 | possession limit is no more than 14 grams of
cannabis, | ||||||
23 | including up to 2 grams of concentrated cannabis. | ||||||
24 | "Public place" means any place to which the general public
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25 | has access, other than licensed on-site consumption | ||||||
26 | establishments or permitted special events, authorized in |
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1 | accordance with Department rule and local authorization. | ||||||
2 | "Retail cannabis store" means an entity registered to
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3 | purchase cannabis from cannabis cultivation facilities and
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4 | cannabis and cannabis products from cannabis product
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5 | manufacturing facilities and to sell cannabis and cannabis
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6 | products to consumers.
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7 | "Unreasonably impracticable" means that the measures
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8 | necessary to comply with the rules require such a high
| ||||||
9 | investment of risk, money, time, or any other resource or asset
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10 | that the operation of a cannabis establishment is not feasible | ||||||
11 | of
being carried out in practice by a reasonably prudent
| ||||||
12 | businessperson. | ||||||
13 | "Unit of local government" means a municipality or, in | ||||||
14 | reference to a
location outside the boundaries of a | ||||||
15 | municipality, a county.
| ||||||
16 | Section 15. Personal use of cannabis.
Notwithstanding any | ||||||
17 | other provision of law, except as otherwise
provided in this | ||||||
18 | Act, the following acts are not a violation
and shall not be a | ||||||
19 | criminal or civil offense under State law
or the law of any | ||||||
20 | political subdivision of this State or be a basis
for seizure | ||||||
21 | or forfeiture of assets under State law for
persons 21 years of | ||||||
22 | age or older: | ||||||
23 | (1) possessing, consuming, growing, using, processing,
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24 | purchasing, or transporting an amount of cannabis that does not
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25 | exceed the possession limit; |
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1 | (2) transferring an amount of cannabis that does not exceed | ||||||
2 | the possession limit to a person who is 21 years of age or | ||||||
3 | older without remuneration; | ||||||
4 | (3) controlling property if actions that are described by | ||||||
5 | this
Section occur; and | ||||||
6 | (4) assisting another person who is 21 years of age or | ||||||
7 | older in
any of the acts described in this Section.
| ||||||
8 | Section 20. Restrictions on personal cultivation; penalty.
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9 | (a) A person may not cultivate cannabis plants in a manner
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10 | that is contrary to this Section. | ||||||
11 | (b) Cannabis plants may not be cultivated in a location | ||||||
12 | where
the plants are subject to public view, including view | ||||||
13 | from
another private property, without the use of binoculars,
| ||||||
14 | aircraft, or other optical aids. | ||||||
15 | (c) A person who cultivates cannabis must take reasonable
| ||||||
16 | precautions to ensure the plants are secure from unauthorized
| ||||||
17 | access and access by a person under 21 years of age. For
| ||||||
18 | purposes of illustration and not limitation, cultivating
| ||||||
19 | cannabis in an enclosed, locked space that persons under 21
| ||||||
20 | years of age do not possess a key to constitutes reasonable
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21 | precautions. | ||||||
22 | (d) Cannabis cultivation may only occur on property | ||||||
23 | lawfully in
possession of the cultivator or with the consent of | ||||||
24 | the person
in lawful possession of the property. | ||||||
25 | (e) Sentence. A person who violates this Section is guilty |
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1 | of a civil
violation punishable by a fine of up to $750.
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2 | Section 25. Public smoking banned; penalty.
A person may | ||||||
3 | not smoke cannabis in a public place. A person
who violates | ||||||
4 | this Section is guilty of a civil violation
punishable by a | ||||||
5 | fine of up to $100.
| ||||||
6 | Section 30. Consuming cannabis in a moving vehicle | ||||||
7 | prohibited; penalty.
| ||||||
8 | (a) A person may not consume cannabis while operating or
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9 | driving a motor vehicle, boat, vessel, aircraft, or other
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10 | motorized device used for transportation. | ||||||
11 | (b) A person found in violation of this Section may be | ||||||
12 | fined
not more than $200 or have his or her driver's license | ||||||
13 | suspended
for up to 6 months, or both, for the first violation. | ||||||
14 | (c) A person found in violation of this Section may be | ||||||
15 | fined
not more than $500 or have his or her driver's license | ||||||
16 | suspended
for up to one year, or both, for each second or | ||||||
17 | subsequent
violation.
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18 | Section 35. False identification; penalty. | ||||||
19 | (a) A person who is under 21 years of age may not present | ||||||
20 | or
offer to a cannabis establishment or the cannabis
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21 | establishment's agent or employee any written or oral evidence
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22 | of age that is false, fraudulent, or not actually the person's
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23 | own, for the purpose of: |
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1 | (1) purchasing, attempting to purchase, or otherwise | ||||||
2 | procuring
or attempting to procure cannabis; or
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3 | (2) gaining access to a cannabis establishment. | ||||||
4 | (b) Sentence. A person who violates this Section is guilty | ||||||
5 | of a civil
violation punishable by a fine not less than $200 | ||||||
6 | and not more
than $400.
| ||||||
7 | Section 40. Unlawful cannabis extraction; penalties.
| ||||||
8 | (a) A person, other than a cannabis product manufacturer
| ||||||
9 | complying with this Act and Department rules, may
not perform | ||||||
10 | solvent-based extractions on cannabis using solvents
other | ||||||
11 | than water glycerin, propylene glycol, vegetable oil, or food | ||||||
12 | grade ethanol. | ||||||
13 | (b) A person may not extract compounds from cannabis using | ||||||
14 | ethanol in the presence or vicinity of open flame. | ||||||
15 | (c) Sentence. A person who violates this Section is guilty | ||||||
16 | of a Class 4 felony.
| ||||||
17 | Section 45. Cannabis accessories authorized.
| ||||||
18 | (a) Notwithstanding any other provision of law, it is not
a | ||||||
19 | violation or an offense under State law or an
ordinance of any | ||||||
20 | political subdivision of this State or be a basis for
seizure | ||||||
21 | or forfeiture of assets under State law for persons 21
years of | ||||||
22 | age or older to manufacture, possess, or purchase
cannabis | ||||||
23 | accessories, or to distribute or sell cannabis
accessories to a | ||||||
24 | person who is 21 years of age or older. |
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1 | (b) A person who is 21 years of age or older may
| ||||||
2 | manufacture, possess, and purchase cannabis accessories, and | ||||||
3 | to
distribute or sell cannabis accessories to a person who is | ||||||
4 | 21
years of age or older.
| ||||||
5 | Section 50. Lawful operation of cannabis-related | ||||||
6 | facilities.
| ||||||
7 | (a) Notwithstanding any other provision of law, the | ||||||
8 | following
acts, when performed by a retail cannabis store with | ||||||
9 | a current,
valid registration, or a person 21 years of age or | ||||||
10 | older who is
acting in his or her capacity as an owner, | ||||||
11 | employee, or agent of
a retail cannabis store, are not a | ||||||
12 | violation and shall not be an
offense under State law or be a | ||||||
13 | basis for seizure or
forfeiture of assets under State law: | ||||||
14 | (1) possessing, displaying, storing, or transporting | ||||||
15 | cannabis
or cannabis products; | ||||||
16 | (2) purchasing cannabis from a cannabis cultivation | ||||||
17 | facility; | ||||||
18 | (3) purchasing cannabis or cannabis products from a | ||||||
19 | cannabis
product manufacturing facility; | ||||||
20 | (4) delivering or transferring cannabis or cannabis | ||||||
21 | products
to a cannabis testing facility; and | ||||||
22 | (5) delivering, distributing, or selling cannabis or | ||||||
23 | cannabis
products to consumers or retail cannabis stores. | ||||||
24 | (b) Notwithstanding any other provision of law, the | ||||||
25 | following
acts, when performed by an on-site consumption |
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1 | establishment with a current, valid
registration, or a person | ||||||
2 | 21 years of age or older who is acting
in his or her capacity as | ||||||
3 | an owner, employee, or agent of an
on-site consumption | ||||||
4 | establishment, are not a violation and shall not be an offense
| ||||||
5 | under State law or be a basis for seizure or forfeiture of
| ||||||
6 | assets under State law: | ||||||
7 | (1) possessing, displaying, storing, or transporting | ||||||
8 | cannabis
or cannabis products; | ||||||
9 | (2) purchasing cannabis from a cannabis cultivation | ||||||
10 | facility; | ||||||
11 | (3) purchasing cannabis or cannabis products from a | ||||||
12 | cannabis
product manufacturing facility; | ||||||
13 | (4) delivering or transferring cannabis or cannabis | ||||||
14 | products
to a cannabis testing facility; and | ||||||
15 | (5) delivering, distributing, or selling cannabis or | ||||||
16 | cannabis
products to consumers or on-site consumption | ||||||
17 | establishments. | ||||||
18 | (c) Notwithstanding any other provision of law, the | ||||||
19 | following
acts, when performed by a cannabis cultivation | ||||||
20 | facility with a
current, valid registration, or a person 21 | ||||||
21 | years of age or
older who is acting in his or her capacity as an | ||||||
22 | owner,
employee, or agent of a cannabis cultivation facility, | ||||||
23 | are not
a violation and shall not be an offense under State law | ||||||
24 | or be a
basis for seizure or forfeiture of assets under State | ||||||
25 | law: | ||||||
26 | (1) cultivating, harvesting, processing, packaging,
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1 | transporting, displaying, storing, or possessing cannabis; | ||||||
2 | (2) delivering or transferring cannabis to a cannabis | ||||||
3 | testing
facility; | ||||||
4 | (3) delivering, distributing, or selling cannabis to a
| ||||||
5 | cannabis cultivation facility, a cannabis product
| ||||||
6 | manufacturing facility, an on-site consumption | ||||||
7 | establishment, or a retail
cannabis store; | ||||||
8 | (4) receiving or purchasing cannabis from a cannabis
| ||||||
9 | cultivation facility; and | ||||||
10 | (5) receiving cannabis seeds or immature cannabis | ||||||
11 | plants from
a person 21 years of age or older. | ||||||
12 | (d) Notwithstanding any other provision of law, the | ||||||
13 | following
acts, when performed by a product manufacturing | ||||||
14 | facility with a
current, valid registration, or a person 21 | ||||||
15 | years of age or
older who is acting in his or her capacity as an | ||||||
16 | owner,
employee, or agent of a product manufacturing facility, | ||||||
17 | are not
a violation and shall not be an offense under State law | ||||||
18 | or be a
basis for seizure or forfeiture of assets under State | ||||||
19 | law: | ||||||
20 | (1) packaging, processing, transporting, | ||||||
21 | manufacturing,
displaying, or possessing cannabis or | ||||||
22 | cannabis products; | ||||||
23 | (2) delivering or transferring cannabis or cannabis | ||||||
24 | products
to a cannabis testing facility; | ||||||
25 | (3) delivering or selling cannabis or cannabis | ||||||
26 | products to a
retail cannabis store, on-site consumption |
| |||||||
| |||||||
1 | establishment, or a cannabis product
manufacturing | ||||||
2 | facility; | ||||||
3 | (4) purchasing cannabis from a cannabis cultivation | ||||||
4 | facility;
and | ||||||
5 | (5) purchasing cannabis or cannabis products from a | ||||||
6 | cannabis
product manufacturing facility. | ||||||
7 | (e) Notwithstanding any other provision of law, the | ||||||
8 | following
acts, when performed by a cannabis testing facility | ||||||
9 | with a
current, valid registration, or a person 21 years of age | ||||||
10 | or
older who is acting in his or her capacity as an owner,
| ||||||
11 | employee, or agent of a cannabis testing facility, are not
a | ||||||
12 | violation and shall not be an offense under State law or be a
| ||||||
13 | basis for seizure or forfeiture of assets under State law: | ||||||
14 | (1) possessing, cultivating, processing, repackaging, | ||||||
15 | storing,
transporting, or displaying cannabis or cannabis | ||||||
16 | products; | ||||||
17 | (2) receiving cannabis or cannabis products from a | ||||||
18 | cannabis
establishment or a person 21 years of age or | ||||||
19 | older; and | ||||||
20 | (3) returning cannabis or cannabis products to a | ||||||
21 | cannabis
establishment, or a person 21 years of age or | ||||||
22 | older. | ||||||
23 | f) Notwithstanding any other provision of law, the | ||||||
24 | possession and transportation of cannabis by a common carrier | ||||||
25 | or any other person acting in a capacity as an employee or | ||||||
26 | agent of a common carrier is not a violation and shall not be |
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| |||||||
1 | an offense under State law. | ||||||
2 | (g) Nothing in this Section prevents the imposition of | ||||||
3 | penalties
for violating this Act or rules adopted by the | ||||||
4 | Department or
units of local government under this Act.
| ||||||
5 | Section 55. Verifying the age of cannabis consumers.
| ||||||
6 | (a) A cannabis establishment or an agent or staff person of | ||||||
7 | a
cannabis establishment may not sell, deliver, give, transfer,
| ||||||
8 | or otherwise furnish cannabis to a person under 21 years of | ||||||
9 | age. | ||||||
10 | (b) Except as otherwise provided in this Section, in a | ||||||
11 | prosecution
for selling, transferring, delivering, giving, or | ||||||
12 | otherwise
furnishing cannabis, cannabis products, or cannabis
| ||||||
13 | paraphernalia to any person who is under 21 years of age, it is
| ||||||
14 | a complete defense if: | ||||||
15 | (1) the person who sold, gave, or otherwise furnished | ||||||
16 | cannabis,
cannabis products, or cannabis paraphernalia was | ||||||
17 | a retailer or
on-site consumption establishment or was | ||||||
18 | acting in his or her capacity as an
owner, employee, or | ||||||
19 | agent of a retailer or on-site consumption establishment at
| ||||||
20 | the time the cannabis, cannabis products, or cannabis
| ||||||
21 | paraphernalia was sold, given, or otherwise furnished to | ||||||
22 | the
person; and | ||||||
23 | (2) before selling, giving, or otherwise furnishing | ||||||
24 | cannabis,
cannabis products, or cannabis paraphernalia to | ||||||
25 | a person who
is under 21 years of age, the person who sold, |
| |||||||
| |||||||
1 | gave, or
otherwise furnished the cannabis or cannabis | ||||||
2 | paraphernalia, or
a staff person or agent of the retailer, | ||||||
3 | was shown a document which
appeared to be issued by an | ||||||
4 | agency of a federal, state, tribal,
or foreign sovereign | ||||||
5 | government and which indicated that the
person to whom the | ||||||
6 | cannabis or cannabis paraphernalia was
sold, given, or | ||||||
7 | otherwise furnished was 21 years of age or older
at the | ||||||
8 | time the cannabis or cannabis paraphernalia was sold,
| ||||||
9 | given, or otherwise furnished to the person. | ||||||
10 | (c) The complete defense under this Section does not apply
| ||||||
11 | if: | ||||||
12 | (1) the document which was shown to the person who | ||||||
13 | sold, gave,
or otherwise furnished the cannabis, cannabis | ||||||
14 | products, or
cannabis paraphernalia was counterfeit, | ||||||
15 | forged, altered, or
issued to a person other than the | ||||||
16 | person to whom the cannabis,
cannabis products, or cannabis | ||||||
17 | paraphernalia was sold, given,
or otherwise furnished; and | ||||||
18 | (2) under the circumstances, a reasonable person would | ||||||
19 | have
known or should have known that the document was | ||||||
20 | counterfeit, forged,
altered, or issued to a person other | ||||||
21 | than the person to whom the
cannabis, cannabis products, or | ||||||
22 | cannabis paraphernalia was
sold, given, or otherwise | ||||||
23 | furnished.
| ||||||
24 | Section 60. Rulemaking.
| ||||||
25 | (a) Not later than 180 days after the effective date of |
| |||||||
| |||||||
1 | this
Act, the Department shall adopt rules necessary for
| ||||||
2 | implementation of this Act. The rules shall not
prohibit the | ||||||
3 | operation of cannabis establishments, either
expressly or | ||||||
4 | through rules that make their operation
unreasonably | ||||||
5 | impracticable. The rules shall include: | ||||||
6 | (1) procedures for the issuance, renewal, suspension, | ||||||
7 | and
revocation of a registration to operate a cannabis
| ||||||
8 | establishment, with the procedures subject to all | ||||||
9 | requirements
of the Illinois Administrative Procedure Act; | ||||||
10 | (2) a schedule of application, registration, and | ||||||
11 | renewal fees,
provided, application fees shall not exceed | ||||||
12 | $5,000, with this
upper limit adjusted annually for | ||||||
13 | inflation, unless the
Department determines a greater fee | ||||||
14 | is necessary to carry out
its responsibilities under this | ||||||
15 | Act; | ||||||
16 | (3) qualifications for registration which are directly | ||||||
17 | and
demonstrably related to the operation of a cannabis
| ||||||
18 | establishment; | ||||||
19 | (4) security requirements including lighting, physical | ||||||
20 | security,
video, and alarm requirements; | ||||||
21 | (5) requirements for the transportation and storage of | ||||||
22 | cannabis
and cannabis products by cannabis establishments; | ||||||
23 | (6) employment and training requirements, including | ||||||
24 | requiring
that each cannabis establishment create an | ||||||
25 | identification badge
for each employee or agent; | ||||||
26 | (7) requirements designed to prevent the sale or |
| |||||||
| |||||||
1 | diversion of
cannabis and cannabis products to persons | ||||||
2 | under 21 years of age; | ||||||
3 | (8) standards for cannabis product manufacturers to | ||||||
4 | determine
the amount of cannabis that cannabis products are | ||||||
5 | considered
the equivalent to; | ||||||
6 | (9) requirements for cannabis and cannabis products | ||||||
7 | sold or
distributed by a cannabis establishment, including | ||||||
8 | requiring
cannabis products' labels to include the | ||||||
9 | following: | ||||||
10 | (A) the length of time it typically takes for a | ||||||
11 | product to
take effect; | ||||||
12 | (B) the amount of cannabis the product is | ||||||
13 | considered the
equivalent to; | ||||||
14 | (C) disclosing ingredients and possible allergens; | ||||||
15 | (D) a nutritional fact panel; | ||||||
16 | (E) requiring opaque, child resistant packaging, | ||||||
17 | which must
be designed or constructed to be | ||||||
18 | significantly difficult
for children under 5 years of | ||||||
19 | age to open and not
difficult for normal adults to use | ||||||
20 | properly as defined by
16 C.F.R. 1700.20 (1995); and | ||||||
21 | (F) requiring that edible cannabis products be | ||||||
22 | clearly
identifiable, when practicable, with a | ||||||
23 | standard symbol
indicating that it contains cannabis; | ||||||
24 | (10) health and safety rules and standards for the
| ||||||
25 | manufacture of cannabis products and both the indoor and
| ||||||
26 | outdoor cultivation of cannabis by cannabis |
| |||||||
| |||||||
1 | establishments; | ||||||
2 | (11) restrictions on advertising, marketing, and | ||||||
3 | signage
including, but not limited to, a prohibition on | ||||||
4 | mass-market
campaigns that have a high likelihood of | ||||||
5 | reaching minors; | ||||||
6 | (12) restrictions on the display of cannabis and | ||||||
7 | cannabis
products, including to ensure that cannabis and | ||||||
8 | cannabis
products may not be displayed in a manner that is | ||||||
9 | visible to the
general public from a public right-of-way;
| ||||||
10 | (13) restrictions or prohibitions on additives to | ||||||
11 | cannabis and
cannabis-infused products, including, but not | ||||||
12 | limited to, those
that are toxic, designed to make the | ||||||
13 | product more addictive,
designed to make the product more | ||||||
14 | appealing to children, or
misleading to consumers; the | ||||||
15 | prohibition may not extend to
common baking and cooking | ||||||
16 | items; | ||||||
17 | (14) restrictions on the use of pesticides that are | ||||||
18 | injurious to
human health; | ||||||
19 | (15) rules governing visits to cultivation facilities | ||||||
20 | and
product manufacturers, including requiring the | ||||||
21 | cannabis
establishment to log in visitors; | ||||||
22 | (16) a definition of the amount of delta-9 | ||||||
23 | tetrahydrocannabinol
that constitutes a single serving in | ||||||
24 | a cannabis product; | ||||||
25 | (17) standards for the safe manufacture of cannabis | ||||||
26 | extracts
and concentrates; |
| |||||||
| |||||||
1 | (18) requirements that educational materials be | ||||||
2 | disseminated to
consumers who purchase cannabis-infused | ||||||
3 | products; | ||||||
4 | (19) requirements for random sample testing to ensure | ||||||
5 | quality
control, including by ensuring that cannabis and | ||||||
6 | cannabis infused
products are accurately labeled for | ||||||
7 | potency. The testing
analysis must include testing for | ||||||
8 | residual solvents, poisons, or
toxins; harmful chemicals; | ||||||
9 | dangerous molds or mildew; filth; and
harmful microbials | ||||||
10 | such as E. Coli or salmonella and pesticides; | ||||||
11 | (20) standards for the operation of testing | ||||||
12 | laboratories,
including requirements for equipment and | ||||||
13 | qualifications for
personnel; | ||||||
14 | (21) civil penalties for the failure to comply with | ||||||
15 | rules
adopted under this Act; and | ||||||
16 | (22) procedures for collecting taxes levied on | ||||||
17 | cannabis
cultivation facilities. | ||||||
18 | (b) In order to ensure that personal privacy is protected, | ||||||
19 | the
Department shall not require a consumer to provide a retail
| ||||||
20 | cannabis store with personal information other than government | ||||||
21 | issued
identification to determine the consumer's age, and a
| ||||||
22 | retail cannabis store may not be required to acquire and
record | ||||||
23 | personal information about consumers.
| ||||||
24 | Section 65. Cannabis establishment registrations.
| ||||||
25 | (a) Each application or renewal application for an annual
|
| |||||||
| |||||||
1 | registration to operate a cannabis establishment shall be
| ||||||
2 | submitted to the Department. A renewal application may be
| ||||||
3 | submitted up to 90 days prior to the expiration of the cannabis
| ||||||
4 | establishment's registration. | ||||||
5 | (b) The Department shall begin accepting and processing
| ||||||
6 | applications to operate cannabis establishments one year after
| ||||||
7 | the effective date of this Act. | ||||||
8 | (c) Upon receiving an application or renewal application | ||||||
9 | for a
cannabis establishment, the Department shall immediately
| ||||||
10 | forward a copy of each application and half of the registration
| ||||||
11 | application fee to the local regulatory authority for the
unit | ||||||
12 | of local government in which the applicant desires to operate | ||||||
13 | the cannabis
establishment, unless the unit of local government | ||||||
14 | has not designated a local
regulatory authority. | ||||||
15 | (d) Within 45 to 90 days after receiving an application or
| ||||||
16 | renewal application, the Department shall issue an annual
| ||||||
17 | registration to the applicant, unless the Department finds the
| ||||||
18 | applicant is not in compliance with rules adopted under Section | ||||||
19 | 60 or the Department is notified by the relevant
unit of local | ||||||
20 | government that the applicant is not in compliance with | ||||||
21 | ordinances
and rules adopted under Section 70 and in effect at | ||||||
22 | the
time of application. | ||||||
23 | (e) If a unit of local government has enacted a numerical | ||||||
24 | limit on the number of
cannabis establishments and a greater | ||||||
25 | number of applicants seek
registrations, the Department shall | ||||||
26 | solicit and consider input
from the local regulatory authority |
| |||||||
| |||||||
1 | as to the unit of local government's
preference or preferences | ||||||
2 | for registration. | ||||||
3 | (f) Upon denial of an application, the Department shall | ||||||
4 | notify
the applicant in writing of the specific reason for its | ||||||
5 | denial. | ||||||
6 | (g) Each cannabis establishment registration shall specify | ||||||
7 | the
location where the cannabis establishment will operate. A
| ||||||
8 | separate registration shall be required for each location at
| ||||||
9 | which a cannabis establishment operates. | ||||||
10 | (h) Cannabis establishments and the books and records
| ||||||
11 | maintained and created by cannabis establishments may be | ||||||
12 | inspected by the Department.
| ||||||
13 | Section 70. Local control.
| ||||||
14 | (a) An on-site consumption establishment may only operate | ||||||
15 | if the local regulatory
authority of the unit of local | ||||||
16 | government where the establishment is located issued a permit,
| ||||||
17 | license, or registration that expressly allows the operation of
| ||||||
18 | the on-site consumption establishment. | ||||||
19 | (b) A unit of local government may prohibit the operation | ||||||
20 | of cannabis
cultivation facilities, cannabis product | ||||||
21 | manufacturing
facilities, cannabis testing facilities, or | ||||||
22 | retail cannabis
stores through the enactment of an ordinance or | ||||||
23 | through an
initiated or referred measure; provided, any | ||||||
24 | initiated or
referred measure to prohibit the operation of | ||||||
25 | cannabis
cultivation facilities, cannabis product |
| |||||||
| |||||||
1 | manufacturing
facilities, cannabis testing facilities, or | ||||||
2 | retail cannabis
stores must be submitted to voters on a general | ||||||
3 | election ballot. | ||||||
4 | (c) A unit of local government may enact ordinances or | ||||||
5 | rules not in
conflict with this Act, or with rules adopted | ||||||
6 | under this Act, governing the time, place, manner, and number
| ||||||
7 | of cannabis establishment operations. A unit of local | ||||||
8 | government may establish
civil penalties for violation of an | ||||||
9 | ordinance or rules
governing the time, place, and manner of | ||||||
10 | operation of a cannabis
establishment in the unit of local | ||||||
11 | government. | ||||||
12 | (d) A unit of local government may designate a local | ||||||
13 | regulatory authority that
is responsible for processing | ||||||
14 | applications submitted for a
registration to operate a cannabis | ||||||
15 | establishment within the
boundaries of the unit of local | ||||||
16 | government.
| ||||||
17 | (e) A unit of local government may establish procedures for | ||||||
18 | the issuance,
suspension, and revocation of a registration | ||||||
19 | issued by the
unit of local government in accordance with this | ||||||
20 | Section. These procedures are
subject to all requirements of | ||||||
21 | Divisions 5-41 and 5-43 of Article 5 of the Counties Code and | ||||||
22 | Division 2.1 of Article 1 of the Illinois Municipal Code, when | ||||||
23 | applicable. | ||||||
24 | (f) A unit of local government may establish a schedule of | ||||||
25 | annual operating and
registration fees for cannabis | ||||||
26 | establishments.
|
| |||||||
| |||||||
1 | Section 75. Employer policies. Nothing in this Act is | ||||||
2 | intended to require an employer to
permit or accommodate the | ||||||
3 | use, consumption, possession,
transfer, display, | ||||||
4 | transportation, sale, or growing of cannabis
in the employer's | ||||||
5 | workplace or to affect the ability of employers to have
| ||||||
6 | policies restricting the use of cannabis by employees or
| ||||||
7 | discipline employees who are under the influence of cannabis in
| ||||||
8 | the employer's workplace.
| ||||||
9 | Section 80. Driving under the influence prohibited.
| ||||||
10 | Nothing in this Act is intended to allow driving under the
| ||||||
11 | influence of cannabis or driving while impaired by cannabis or
| ||||||
12 | to supersede laws related to driving under the influence of
| ||||||
13 | cannabis or driving while impaired by cannabis.
| ||||||
14 | Section 85. Persons under 21 years of age.
Nothing in this | ||||||
15 | Act is intended to permit the transfer of
cannabis, with or | ||||||
16 | without remuneration, to a person under 21 years of age or to | ||||||
17 | allow a person under 21 years of age to purchase,
possess, use, | ||||||
18 | transport, grow, or consume cannabis.
| ||||||
19 | Section 90. Private property rights.
| ||||||
20 | (a) Except as provided in this Section, the provisions of | ||||||
21 | this
Act do not require any person, corporation, or any other
| ||||||
22 | entity that occupies, owns, or controls a property to allow the
|
| |||||||
| |||||||
1 | consumption, cultivation, display, sale, or transfer of
| ||||||
2 | cannabis on or in that property. | ||||||
3 | (b) In the rental of a residential dwelling, a
landlord may | ||||||
4 | not prohibit the possession of cannabis or the
consumption of | ||||||
5 | cannabis by non-smoked means unless: | ||||||
6 | (1) the tenant is a boarder who is not leasing the | ||||||
7 | entire
residential dwelling; | ||||||
8 | (2) the residence is incidental to detention or the | ||||||
9 | provision of
medical, geriatric, educational, counseling, | ||||||
10 | religious, or
similar service; | ||||||
11 | (3) the residence is a transitional housing facility; | ||||||
12 | or | ||||||
13 | (4) failing to prohibit cannabis possession or | ||||||
14 | consumption
would violate federal law or regulations or | ||||||
15 | cause the landlord
to lose a monetary or licensing-related | ||||||
16 | benefit under federal
law or regulations.
| ||||||
17 | Section 95. Contracts enforceable.
It is the public policy | ||||||
18 | of this State that contracts related to
the operation of a | ||||||
19 | cannabis establishment registered under this Act should be | ||||||
20 | enforceable. It is the public policy
of this State that no | ||||||
21 | contract entered into by a registered
cannabis establishment or | ||||||
22 | its employees or agents as permitted
under a valid | ||||||
23 | registration, or by those who allow property
to be used by a | ||||||
24 | establishment, its employees, or its agents as
permitted under | ||||||
25 | a valid registration, shall be
unenforceable on the basis that |
| |||||||
| |||||||
1 | cultivating, obtaining,
manufacturing, distributing, | ||||||
2 | dispensing, transporting, selling,
possessing, or using | ||||||
3 | cannabis or hemp is prohibited by federal
law.
| ||||||
4 | Section 100. Cannabis Regulation Fund.
The Cannabis | ||||||
5 | Regulation Fund is created as a special Fund in the State | ||||||
6 | treasury consisting of fees
collected and civil penalties | ||||||
7 | imposed under this Act, the Cannabis Control Act, and the Drug | ||||||
8 | Paraphernalia Control Act. The
Department shall administer the | ||||||
9 | Fund. Monies in the Fund are
subject to appropriation for the | ||||||
10 | purposes under this Act.
| ||||||
11 | Section 105. Excise tax on cannabis. | ||||||
12 | (a) An excise tax is imposed on the sale or transfer of
| ||||||
13 | cannabis from a cannabis cultivation facility to a retail
| ||||||
14 | cannabis store, an on-site consumption establishment, or | ||||||
15 | cannabis product
manufacturing facility at the rate of: | ||||||
16 | (1) $50 per 28 grams on all cannabis flowers; | ||||||
17 | (2) $15 per 25 grams on all parts of cannabis other | ||||||
18 | than cannabis
flowers and immature cannabis plants; and | ||||||
19 | (3) $25 per immature cannabis plant. | ||||||
20 | (b) The rates of tax imposed by this Section apply
| ||||||
21 | proportionately to quantities of less than 28 grams. | ||||||
22 | (c) The Department shall adjust the rates annually to | ||||||
23 | account
for inflation or deflation based on the Consumer Price | ||||||
24 | Index. |
| |||||||
| |||||||
1 | (d) On the 15th day of each month, each cannabis | ||||||
2 | cultivation
facility shall pay the excise taxes due on the | ||||||
3 | cannabis that
the cannabis cultivation facility transferred or | ||||||
4 | sold in the
prior calendar month.
| ||||||
5 | Section 110. Apportionment of revenue.
Revenues generated | ||||||
6 | in excess of the amount needed to implement
and enforce this | ||||||
7 | Act by the cannabis excise tax shall be
distributed every 3 | ||||||
8 | months as follows: | ||||||
9 | (1) 30% shall be distributed to the State Board of | ||||||
10 | Education; | ||||||
11 | (2) 10% shall be distributed to the Department of Public | ||||||
12 | Health for use in evidence-based, voluntary programs for
the | ||||||
13 | prevention or treatment of alcohol, tobacco, and cannabis
| ||||||
14 | abuse; | ||||||
15 | (3) 10% shall be distributed to the Department of Public | ||||||
16 | Health for a scientifically and medically accurate public
| ||||||
17 | education campaign educating youth and adults about the health
| ||||||
18 | and safety risks of alcohol, tobacco, and cannabis; and | ||||||
19 | (4) 50% shall be distributed to the General Revenue Fund.
| ||||||
20 | Section 115. Medical cannabis. Nothing in this Act shall be | ||||||
21 | construed to limit any
privileges or rights of a medical | ||||||
22 | cannabis patient, primary
caregiver, or medical cannabis | ||||||
23 | dispensary, under the Compassionate Use of Medical Cannabis | ||||||
24 | Pilot Program Act.
|
| |||||||
| |||||||
1 | Section 120. Short title. Sections 120 through 150 of this | ||||||
2 | Act may be cited as the Industrial Hemp Law.
| ||||||
3 | Section 125. Definitions. In this Law: | ||||||
4 | "Department" means the Department of Agriculture. | ||||||
5 | "Director" means the Director of Agriculture. | ||||||
6 | "Industrial hemp" means fibers, seeds, and roots | ||||||
7 | cultivated from plants of the cannabis genus with a THC | ||||||
8 | (tetrahydrocannabinol) content of 1% or less.
| ||||||
9 | Section 130. Licenses. | ||||||
10 | (a) A person must be licensed by the Department to grow, | ||||||
11 | process, cultivate, harvest, process, possess, sell, or | ||||||
12 | purchase industrial hemp or industrial hemp related products. | ||||||
13 | (b) The application for a license shall include the name | ||||||
14 | and address of the applicant and the legal description of the | ||||||
15 | real property to be used to grow or process industrial hemp. | ||||||
16 | (c) If the applicant completes the application process to | ||||||
17 | the satisfaction of the Department, then the Department shall | ||||||
18 | issue the license, which shall be valid for 5 years.
| ||||||
19 | Section 135. Rules. | ||||||
20 | (a) The application and licensing requirements shall be | ||||||
21 | determined by the Department and set by rule within 180 days | ||||||
22 | after the effective date of this Act. |
| |||||||
| |||||||
1 | (b) The rules adopted by the Department shall include 2 | ||||||
2 | inspections each year of a licensed industrial hemp cultivation | ||||||
3 | operation by the Department, with one of the inspections to be | ||||||
4 | unannounced. | ||||||
5 | (c) The Department shall adopt rules necessary for the | ||||||
6 | administration and enforcement of this Act, including rules | ||||||
7 | concerning standards and criteria for licensure, for the | ||||||
8 | payment of applicable fees, signage, and for forms required for | ||||||
9 | the administration of this Law.
| ||||||
10 | Section 140. Hemp products. Nothing in this Law shall alter | ||||||
11 | the legality of hemp or hemp products which are presently legal | ||||||
12 | to possess or own.
| ||||||
13 | Section 145. Violation of federal law. Nothing in this Law | ||||||
14 | shall be construed to authorize any person to violate federal | ||||||
15 | rules, regulations, or laws. If any part of this Law conflicts | ||||||
16 | with a provision of the federal laws regarding industrial hemp, | ||||||
17 | the federal provisions shall control to the extent of the | ||||||
18 | conflict.
| ||||||
19 | Section 150. Home rule. The regulation and licensing for | ||||||
20 | industrial hemp are exclusive powers and functions of the | ||||||
21 | State. A home rule unit may not regulate or issue licenses for | ||||||
22 | industrial hemp. This Section is a denial and limitation of | ||||||
23 | home rule powers and functions under subsection (h) of Section |
| |||||||
| |||||||
1 | 6 of
Article VII of the Illinois Constitution. The power or | ||||||
2 | function shall
not be exercised concurrently, either directly | ||||||
3 | or indirectly, by
any unit of local government, including home | ||||||
4 | rule units, except as
otherwise provided in this Law. This is a | ||||||
5 | limitation of home rule
powers.
| ||||||
6 | Section 155. Self-executing, severability, conflicting
| ||||||
7 | provisions.
All provisions of this Act are severable under | ||||||
8 | Section 1.31 of the Statute on Statutes, and, except when
| ||||||
9 | otherwise indicated in this Act, shall supersede conflicting
| ||||||
10 | statutes, ordinances, or resolutions of units of local | ||||||
11 | government.
| ||||||
12 | Section 1001. The State Finance Act is amended by adding | ||||||
13 | Section 5.878 as follows:
| ||||||
14 | (30 ILCS 105/5.878 new) | ||||||
15 | Sec. 5.878. The Cannabis Regulation Fund.
| ||||||
16 | Section 1005. The Illinois Income Tax Act is amended by | ||||||
17 | changing Section 203 as follows:
| ||||||
18 | (35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||||||
19 | Sec. 203. Base income defined. | ||||||
20 | (a) Individuals. | ||||||
21 | (1) In general. In the case of an individual, base |
| |||||||
| |||||||
1 | income means an
amount equal to the taxpayer's adjusted | ||||||
2 | gross income for the taxable
year as modified by paragraph | ||||||
3 | (2). | ||||||
4 | (2) Modifications. The adjusted gross income referred | ||||||
5 | to in
paragraph (1) shall be modified by adding thereto the | ||||||
6 | sum of the
following amounts: | ||||||
7 | (A) An amount equal to all amounts paid or accrued | ||||||
8 | to the taxpayer
as interest or dividends during the | ||||||
9 | taxable year to the extent excluded
from gross income | ||||||
10 | in the computation of adjusted gross income, except | ||||||
11 | stock
dividends of qualified public utilities | ||||||
12 | described in Section 305(e) of the
Internal Revenue | ||||||
13 | Code; | ||||||
14 | (B) An amount equal to the amount of tax imposed by | ||||||
15 | this Act to the
extent deducted from gross income in | ||||||
16 | the computation of adjusted gross
income for the | ||||||
17 | taxable year; | ||||||
18 | (C) An amount equal to the amount received during | ||||||
19 | the taxable year
as a recovery or refund of real | ||||||
20 | property taxes paid with respect to the
taxpayer's | ||||||
21 | principal residence under the Revenue Act of
1939 and | ||||||
22 | for which a deduction was previously taken under | ||||||
23 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
24 | 1991, the retrospective application date of
Article 4 | ||||||
25 | of Public Act 87-17. In the case of multi-unit or | ||||||
26 | multi-use
structures and farm dwellings, the taxes on |
| |||||||
| |||||||
1 | the taxpayer's principal residence
shall be that | ||||||
2 | portion of the total taxes for the entire property | ||||||
3 | which is
attributable to such principal residence; | ||||||
4 | (D) An amount equal to the amount of the capital | ||||||
5 | gain deduction
allowable under the Internal Revenue | ||||||
6 | Code, to the extent deducted from gross
income in the | ||||||
7 | computation of adjusted gross income; | ||||||
8 | (D-5) An amount, to the extent not included in | ||||||
9 | adjusted gross income,
equal to the amount of money | ||||||
10 | withdrawn by the taxpayer in the taxable year from
a | ||||||
11 | medical care savings account and the interest earned on | ||||||
12 | the account in the
taxable year of a withdrawal | ||||||
13 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
14 | Care Savings Account Act or subsection (b) of Section | ||||||
15 | 20 of the
Medical Care Savings Account Act of 2000; | ||||||
16 | (D-10) For taxable years ending after December 31, | ||||||
17 | 1997, an
amount equal to any eligible remediation costs | ||||||
18 | that the individual
deducted in computing adjusted | ||||||
19 | gross income and for which the
individual claims a | ||||||
20 | credit under subsection (l) of Section 201; | ||||||
21 | (D-15) For taxable years 2001 and thereafter, an | ||||||
22 | amount equal to the
bonus depreciation deduction taken | ||||||
23 | on the taxpayer's federal income tax return for the | ||||||
24 | taxable
year under subsection (k) of Section 168 of the | ||||||
25 | Internal Revenue Code; | ||||||
26 | (D-16) If the taxpayer sells, transfers, abandons, |
| |||||||
| |||||||
1 | or otherwise disposes of property for which the | ||||||
2 | taxpayer was required in any taxable year to
make an | ||||||
3 | addition modification under subparagraph (D-15), then | ||||||
4 | an amount equal
to the aggregate amount of the | ||||||
5 | deductions taken in all taxable
years under | ||||||
6 | subparagraph (Z) with respect to that property. | ||||||
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 allowed in any taxable year to make a subtraction | ||||||
12 | modification under subparagraph (Z), then an amount | ||||||
13 | equal to that subtraction modification.
| ||||||
14 | The taxpayer is required to make the addition | ||||||
15 | modification under this
subparagraph
only once with | ||||||
16 | respect to any one piece of property; | ||||||
17 | (D-17) An amount equal to the amount otherwise | ||||||
18 | allowed as a deduction in computing base income for | ||||||
19 | interest paid, accrued, or incurred, directly or | ||||||
20 | indirectly, (i) for taxable years ending on or after | ||||||
21 | December 31, 2004, to a foreign person who would be a | ||||||
22 | member of the same unitary business group but for the | ||||||
23 | fact that foreign person's business activity outside | ||||||
24 | the United States is 80% or more of the foreign | ||||||
25 | person's total business activity and (ii) for taxable | ||||||
26 | years ending on or after December 31, 2008, to a person |
| |||||||
| |||||||
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. The addition modification | ||||||
7 | required by this subparagraph shall be reduced to the | ||||||
8 | extent that dividends were included in base income of | ||||||
9 | the unitary group for the same taxable year and | ||||||
10 | received by the taxpayer or by a member of the | ||||||
11 | taxpayer's unitary business group (including amounts | ||||||
12 | included in gross income under Sections 951 through 964 | ||||||
13 | of the Internal Revenue Code and amounts included in | ||||||
14 | gross income under Section 78 of the Internal Revenue | ||||||
15 | Code) with respect to the stock of the same person to | ||||||
16 | whom the interest was paid, accrued, or incurred. | ||||||
17 | This paragraph shall not apply to the following:
| ||||||
18 | (i) an item of interest paid, accrued, or | ||||||
19 | incurred, directly or indirectly, to a person who | ||||||
20 | is subject in a foreign country or state, other | ||||||
21 | than a state which requires mandatory unitary | ||||||
22 | reporting, to a tax on or measured by net income | ||||||
23 | with respect to such interest; or | ||||||
24 | (ii) an item of interest paid, accrued, or | ||||||
25 | incurred, directly or indirectly, to a person if | ||||||
26 | the taxpayer can establish, based on a |
| |||||||
| |||||||
1 | preponderance of the evidence, both of the | ||||||
2 | following: | ||||||
3 | (a) the person, during the same taxable | ||||||
4 | year, paid, accrued, or incurred, the interest | ||||||
5 | to a person that is not a related member, and | ||||||
6 | (b) the transaction giving rise to the | ||||||
7 | interest expense between the taxpayer and the | ||||||
8 | person did not have as a principal purpose the | ||||||
9 | avoidance of Illinois income tax, and is paid | ||||||
10 | pursuant to a contract or agreement that | ||||||
11 | reflects an arm's-length interest rate and | ||||||
12 | terms; or
| ||||||
13 | (iii) the taxpayer can establish, based on | ||||||
14 | clear and convincing evidence, that the interest | ||||||
15 | paid, accrued, or incurred relates to a contract or | ||||||
16 | agreement entered into at arm's-length rates and | ||||||
17 | terms and the principal purpose for the payment is | ||||||
18 | not federal or Illinois tax avoidance; or
| ||||||
19 | (iv) an item of interest paid, accrued, or | ||||||
20 | incurred, directly or indirectly, to a person if | ||||||
21 | the taxpayer establishes by clear and convincing | ||||||
22 | evidence that the adjustments are unreasonable; or | ||||||
23 | if the taxpayer and the Director agree in writing | ||||||
24 | to the application or use of an alternative method | ||||||
25 | of apportionment under Section 304(f).
| ||||||
26 | Nothing in this subsection shall preclude the |
| |||||||
| |||||||
1 | Director from making any other adjustment | ||||||
2 | otherwise allowed under Section 404 of this Act for | ||||||
3 | any tax year beginning after the effective date of | ||||||
4 | this amendment provided such adjustment is made | ||||||
5 | pursuant to regulation adopted by the Department | ||||||
6 | and such regulations provide methods and standards | ||||||
7 | by which the Department will utilize its authority | ||||||
8 | under Section 404 of this Act;
| ||||||
9 | (D-18) An amount equal to the amount of intangible | ||||||
10 | expenses and costs otherwise allowed as a deduction in | ||||||
11 | computing base income, and that were paid, accrued, or | ||||||
12 | incurred, directly or indirectly, (i) for taxable | ||||||
13 | years ending on or after December 31, 2004, to a | ||||||
14 | foreign person who would be a member of the same | ||||||
15 | unitary business group but for the fact that the | ||||||
16 | foreign person's business activity outside the United | ||||||
17 | States is 80% or more of that person's total business | ||||||
18 | activity and (ii) for taxable years ending on or after | ||||||
19 | December 31, 2008, to a person who would be a member of | ||||||
20 | the same unitary business group but for the fact that | ||||||
21 | the person is prohibited under Section 1501(a)(27) | ||||||
22 | from being included in the unitary business group | ||||||
23 | because he or she is ordinarily required to apportion | ||||||
24 | business income under different subsections of Section | ||||||
25 | 304. The addition modification required by this | ||||||
26 | subparagraph shall be reduced to the extent that |
| |||||||
| |||||||
1 | dividends were included in base income of the unitary | ||||||
2 | group for the same taxable year and received by the | ||||||
3 | taxpayer or by a member of the taxpayer's unitary | ||||||
4 | business group (including amounts included in gross | ||||||
5 | income under Sections 951 through 964 of the Internal | ||||||
6 | Revenue Code and amounts included in gross income under | ||||||
7 | Section 78 of the Internal Revenue Code) with respect | ||||||
8 | to the stock of the same person to whom the intangible | ||||||
9 | expenses and costs were directly or indirectly paid, | ||||||
10 | incurred, or accrued. The preceding sentence does not | ||||||
11 | apply to the extent that the same dividends caused a | ||||||
12 | reduction to the addition modification required under | ||||||
13 | Section 203(a)(2)(D-17) of this Act. As used in this | ||||||
14 | subparagraph, the term "intangible expenses and costs" | ||||||
15 | includes (1) expenses, losses, and costs for, or | ||||||
16 | related to, the direct or indirect acquisition, use, | ||||||
17 | maintenance or management, ownership, sale, exchange, | ||||||
18 | or any other disposition of intangible property; (2) | ||||||
19 | losses incurred, directly or indirectly, from | ||||||
20 | factoring transactions or discounting transactions; | ||||||
21 | (3) royalty, patent, technical, and copyright fees; | ||||||
22 | (4) licensing fees; and (5) other similar expenses and | ||||||
23 | costs.
For purposes of this subparagraph, "intangible | ||||||
24 | property" includes patents, patent applications, trade | ||||||
25 | names, trademarks, service marks, copyrights, mask | ||||||
26 | works, trade secrets, and similar types of intangible |
| |||||||
| |||||||
1 | assets. | ||||||
2 | This paragraph shall not apply to the following: | ||||||
3 | (i) any item of intangible expenses or costs | ||||||
4 | paid, accrued, or incurred, directly or | ||||||
5 | indirectly, from a transaction with a person who is | ||||||
6 | subject in a foreign country or state, other than a | ||||||
7 | state which requires mandatory unitary reporting, | ||||||
8 | to a tax on or measured by net income with respect | ||||||
9 | to such item; or | ||||||
10 | (ii) any item of intangible expense or cost | ||||||
11 | paid, accrued, or incurred, directly or | ||||||
12 | indirectly, if the taxpayer can establish, based | ||||||
13 | on a preponderance of the evidence, both of the | ||||||
14 | following: | ||||||
15 | (a) the person during the same taxable | ||||||
16 | year paid, accrued, or incurred, the | ||||||
17 | intangible expense or cost to a person that is | ||||||
18 | not a related member, and | ||||||
19 | (b) the transaction giving rise to the | ||||||
20 | intangible expense or cost between the | ||||||
21 | taxpayer and the person did not have as a | ||||||
22 | principal purpose the avoidance of Illinois | ||||||
23 | income tax, and is paid pursuant to a contract | ||||||
24 | or agreement that reflects arm's-length terms; | ||||||
25 | or | ||||||
26 | (iii) any item of intangible expense or cost |
| |||||||
| |||||||
1 | paid, accrued, or incurred, directly or | ||||||
2 | indirectly, from a transaction with a person if the | ||||||
3 | taxpayer establishes by clear and convincing | ||||||
4 | evidence, that the adjustments are unreasonable; | ||||||
5 | or if the taxpayer and the Director agree in | ||||||
6 | writing to the application or use of an alternative | ||||||
7 | method of apportionment under Section 304(f);
| ||||||
8 | Nothing in this subsection shall preclude the | ||||||
9 | Director from making any other adjustment | ||||||
10 | otherwise allowed under Section 404 of this Act for | ||||||
11 | any tax year beginning after the effective date of | ||||||
12 | this amendment provided such adjustment is made | ||||||
13 | pursuant to regulation adopted by the Department | ||||||
14 | and such regulations provide methods and standards | ||||||
15 | by which the Department will utilize its authority | ||||||
16 | under Section 404 of this Act;
| ||||||
17 | (D-19) For taxable years ending on or after | ||||||
18 | December 31, 2008, an amount equal to the amount of | ||||||
19 | insurance premium expenses and costs otherwise allowed | ||||||
20 | as a deduction in computing base income, and that were | ||||||
21 | paid, accrued, or incurred, directly or indirectly, to | ||||||
22 | a person who would be a member of the same unitary | ||||||
23 | business group but for the fact that the person is | ||||||
24 | prohibited under Section 1501(a)(27) from being | ||||||
25 | included in the unitary business group because he or | ||||||
26 | she is ordinarily required to apportion business |
| |||||||
| |||||||
1 | income under different subsections of Section 304. The | ||||||
2 | addition modification required by this subparagraph | ||||||
3 | shall be reduced to the extent that dividends were | ||||||
4 | included in base income of the unitary group for the | ||||||
5 | same taxable year and received by the taxpayer or by a | ||||||
6 | member of the taxpayer's unitary business group | ||||||
7 | (including amounts included in gross income under | ||||||
8 | Sections 951 through 964 of the Internal Revenue Code | ||||||
9 | and amounts included in gross income under Section 78 | ||||||
10 | of the Internal Revenue Code) with respect to the stock | ||||||
11 | of the same person to whom the premiums and costs were | ||||||
12 | directly or indirectly paid, incurred, or accrued. The | ||||||
13 | preceding sentence does not apply to the extent that | ||||||
14 | the same dividends caused a reduction to the addition | ||||||
15 | modification required under Section 203(a)(2)(D-17) or | ||||||
16 | Section 203(a)(2)(D-18) of this Act.
| ||||||
17 | (D-20) For taxable years beginning on or after | ||||||
18 | January 1,
2002 and ending on or before December 31, | ||||||
19 | 2006, in
the
case of a distribution from a qualified | ||||||
20 | tuition program under Section 529 of
the Internal | ||||||
21 | Revenue Code, other than (i) a distribution from a | ||||||
22 | College Savings
Pool created under Section 16.5 of the | ||||||
23 | State Treasurer Act or (ii) a
distribution from the | ||||||
24 | Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||||||
25 | the amount excluded from gross income under Section | ||||||
26 | 529(c)(3)(B). For taxable years beginning on or after |
| |||||||
| |||||||
1 | January 1, 2007, in the case of a distribution from a | ||||||
2 | qualified tuition program under Section 529 of the | ||||||
3 | Internal Revenue Code, other than (i) a distribution | ||||||
4 | from a College Savings Pool created under Section 16.5 | ||||||
5 | of the State Treasurer Act, (ii) a distribution from | ||||||
6 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
7 | distribution from a qualified tuition program under | ||||||
8 | Section 529 of the Internal Revenue Code that (I) | ||||||
9 | adopts and determines that its offering materials | ||||||
10 | comply with the College Savings Plans Network's | ||||||
11 | disclosure principles and (II) has made reasonable | ||||||
12 | efforts to inform in-state residents of the existence | ||||||
13 | of in-state qualified tuition programs by informing | ||||||
14 | Illinois residents directly and, where applicable, to | ||||||
15 | inform financial intermediaries distributing the | ||||||
16 | program to inform in-state residents of the existence | ||||||
17 | of in-state qualified tuition programs at least | ||||||
18 | annually, an amount equal to the amount excluded from | ||||||
19 | gross income under Section 529(c)(3)(B). | ||||||
20 | For the purposes of this subparagraph (D-20), a | ||||||
21 | qualified tuition program has made reasonable efforts | ||||||
22 | if it makes disclosures (which may use the term | ||||||
23 | "in-state program" or "in-state plan" and need not | ||||||
24 | specifically refer to Illinois or its qualified | ||||||
25 | programs by name) (i) directly to prospective | ||||||
26 | participants in its offering materials or makes a |
| |||||||
| |||||||
1 | public disclosure, such as a website posting; and (ii) | ||||||
2 | where applicable, to intermediaries selling the | ||||||
3 | out-of-state program in the same manner that the | ||||||
4 | out-of-state program distributes its offering | ||||||
5 | materials; | ||||||
6 | (D-21) For taxable years beginning on or after | ||||||
7 | January 1, 2007, in the case of transfer of moneys from | ||||||
8 | a qualified tuition program under Section 529 of the | ||||||
9 | Internal Revenue Code that is administered by the State | ||||||
10 | to an out-of-state program, an amount equal to the | ||||||
11 | amount of moneys previously deducted from base income | ||||||
12 | under subsection (a)(2)(Y) of this Section; | ||||||
13 | (D-22) For taxable years beginning on or after | ||||||
14 | January 1, 2009, in the case of a nonqualified | ||||||
15 | withdrawal or refund of moneys from a qualified tuition | ||||||
16 | program under Section 529 of the Internal Revenue Code | ||||||
17 | administered by the State that is not used for | ||||||
18 | qualified expenses at an eligible education | ||||||
19 | institution, an amount equal to the contribution | ||||||
20 | component of the nonqualified withdrawal or refund | ||||||
21 | that was previously deducted from base income under | ||||||
22 | subsection (a)(2)(y) of this Section, provided that | ||||||
23 | the withdrawal or refund did not result from the | ||||||
24 | beneficiary's death or disability; | ||||||
25 | (D-23) An amount equal to the credit allowable to | ||||||
26 | the taxpayer under Section 218(a) of this Act, |
| |||||||
| |||||||
1 | determined without regard to Section 218(c) of this | ||||||
2 | Act; | ||||||
3 | and by deducting from the total so obtained the
sum of the | ||||||
4 | following amounts: | ||||||
5 | (E) For taxable years ending before December 31, | ||||||
6 | 2001,
any amount included in such total in respect of | ||||||
7 | any compensation
(including but not limited to any | ||||||
8 | compensation paid or accrued to a
serviceman while a | ||||||
9 | prisoner of war or missing in action) paid to a | ||||||
10 | resident
by reason of being on active duty in the Armed | ||||||
11 | Forces of the United States
and in respect of any | ||||||
12 | compensation paid or accrued to a resident who as a
| ||||||
13 | governmental employee was a prisoner of war or missing | ||||||
14 | in action, and in
respect of any compensation paid to a | ||||||
15 | resident in 1971 or thereafter for
annual training | ||||||
16 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
17 | United States Code as a member of the Illinois National | ||||||
18 | Guard or, beginning with taxable years ending on or | ||||||
19 | after December 31, 2007, the National Guard of any | ||||||
20 | other state.
For taxable years ending on or after | ||||||
21 | December 31, 2001, any amount included in
such total in | ||||||
22 | respect of any compensation (including but not limited | ||||||
23 | to any
compensation paid or accrued to a serviceman | ||||||
24 | while a prisoner of war or missing
in action) paid to a | ||||||
25 | resident by reason of being a member of any component | ||||||
26 | of
the Armed Forces of the United States and in respect |
| |||||||
| |||||||
1 | of any compensation paid
or accrued to a resident who | ||||||
2 | as a governmental employee was a prisoner of war
or | ||||||
3 | missing in action, and in respect of any compensation | ||||||
4 | paid to a resident in
2001 or thereafter by reason of | ||||||
5 | being a member of the Illinois National Guard or, | ||||||
6 | beginning with taxable years ending on or after | ||||||
7 | December 31, 2007, the National Guard of any other | ||||||
8 | state.
The provisions of this subparagraph (E) are | ||||||
9 | exempt
from the provisions of Section 250; | ||||||
10 | (F) An amount equal to all amounts included in such | ||||||
11 | total pursuant
to the provisions of Sections 402(a), | ||||||
12 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
13 | Internal Revenue Code, or included in such total as
| ||||||
14 | distributions under the provisions of any retirement | ||||||
15 | or disability plan for
employees of any governmental | ||||||
16 | agency or unit, or retirement payments to
retired | ||||||
17 | partners, which payments are excluded in computing net | ||||||
18 | earnings
from self employment by Section 1402 of the | ||||||
19 | Internal Revenue Code and
regulations adopted pursuant | ||||||
20 | thereto; | ||||||
21 | (G) The valuation limitation amount; | ||||||
22 | (H) 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 | (I) An amount equal to all amounts included in such | ||||||
26 | total pursuant
to the provisions of Section 111 of the |
| |||||||
| |||||||
1 | Internal Revenue Code as a
recovery of items previously | ||||||
2 | deducted from adjusted gross income in the
computation | ||||||
3 | of taxable income; | ||||||
4 | (J) An amount equal to those dividends included in | ||||||
5 | such total which were
paid by a corporation which | ||||||
6 | conducts business operations in a River Edge | ||||||
7 | Redevelopment Zone or zones created under the River | ||||||
8 | Edge Redevelopment Zone Act, and conducts
| ||||||
9 | substantially all of its operations in a River Edge | ||||||
10 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
11 | exempt from the provisions of Section 250; | ||||||
12 | (K) 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 (J) of paragraph (2) of this subsection
| ||||||
19 | shall not be eligible for the deduction provided under | ||||||
20 | this subparagraph
(K); | ||||||
21 | (L) For taxable years ending after December 31, | ||||||
22 | 1983, an amount equal to
all social security benefits | ||||||
23 | and railroad retirement benefits included in
such | ||||||
24 | total pursuant to Sections 72(r) and 86 of the Internal | ||||||
25 | Revenue Code; | ||||||
26 | (M) With the exception of any amounts subtracted |
| |||||||
| |||||||
1 | under subparagraph
(N), an amount equal to the sum of | ||||||
2 | all amounts disallowed as
deductions by (i) Sections | ||||||
3 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
4 | and all amounts of expenses allocable
to interest and | ||||||
5 | disallowed as deductions by Section 265(1) of the | ||||||
6 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
7 | ending on or after August 13, 1999, Sections 171(a)(2), | ||||||
8 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
9 | Code, plus, for taxable years ending on or after | ||||||
10 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
11 | Revenue Code and, for taxable years ending on or after | ||||||
12 | December 31, 2008, any amount included in gross income | ||||||
13 | under Section 87 of the Internal Revenue Code; the | ||||||
14 | provisions of this
subparagraph are exempt from the | ||||||
15 | provisions of Section 250; | ||||||
16 | (N) An amount equal to all amounts included in such | ||||||
17 | total which are
exempt from taxation by this State | ||||||
18 | either by reason of its statutes or
Constitution
or by | ||||||
19 | reason of the Constitution, treaties or statutes of the | ||||||
20 | United States;
provided that, in the case of any | ||||||
21 | statute of this State that exempts income
derived from | ||||||
22 | bonds or other obligations from the tax imposed under | ||||||
23 | this Act,
the amount exempted shall be the interest net | ||||||
24 | of bond premium amortization; | ||||||
25 | (O) An amount equal to any contribution made to a | ||||||
26 | job training
project established pursuant to the Tax |
| |||||||
| |||||||
1 | Increment Allocation Redevelopment Act; | ||||||
2 | (P) An amount equal to the amount of the deduction | ||||||
3 | used to compute the
federal income tax credit for | ||||||
4 | restoration of substantial amounts held under
claim of | ||||||
5 | right for the taxable year pursuant to Section 1341 of | ||||||
6 | the
Internal Revenue Code or of any itemized deduction | ||||||
7 | taken from adjusted gross income in the computation of | ||||||
8 | taxable income for restoration of substantial amounts | ||||||
9 | held under claim of right for the taxable year; | ||||||
10 | (Q) An amount equal to any amounts included in such | ||||||
11 | total, received by
the taxpayer as an acceleration in | ||||||
12 | the payment of life, endowment or annuity
benefits in | ||||||
13 | advance of the time they would otherwise be payable as | ||||||
14 | an indemnity
for a terminal illness; | ||||||
15 | (R) An amount equal to the amount of any federal or | ||||||
16 | State bonus paid
to veterans of the Persian Gulf War; | ||||||
17 | (S) An amount, to the extent included in adjusted | ||||||
18 | gross income, equal
to the amount of a contribution | ||||||
19 | made in the taxable year on behalf of the
taxpayer to a | ||||||
20 | medical care savings account established under the | ||||||
21 | Medical Care
Savings Account Act or the Medical Care | ||||||
22 | Savings Account Act of 2000 to the
extent the | ||||||
23 | contribution is accepted by the account
administrator | ||||||
24 | as provided in that Act; | ||||||
25 | (T) An amount, to the extent included in adjusted | ||||||
26 | gross income, equal to
the amount of interest earned in |
| |||||||
| |||||||
1 | the taxable year on a medical care savings
account | ||||||
2 | established under the Medical Care Savings Account Act | ||||||
3 | or the Medical
Care Savings Account Act of 2000 on | ||||||
4 | behalf of the
taxpayer, other than interest added | ||||||
5 | pursuant to item (D-5) of this paragraph
(2); | ||||||
6 | (U) For one taxable year beginning on or after | ||||||
7 | January 1,
1994, an
amount equal to the total amount of | ||||||
8 | tax imposed and paid under subsections (a)
and (b) of | ||||||
9 | Section 201 of this Act on grant amounts received by | ||||||
10 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
11 | Act during the taxpayer's taxable years
1992 and 1993; | ||||||
12 | (V) Beginning with tax years ending on or after | ||||||
13 | December 31, 1995 and
ending with tax years ending on | ||||||
14 | or before December 31, 2004, an amount equal to
the | ||||||
15 | amount paid by a taxpayer who is a
self-employed | ||||||
16 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
17 | in a Subchapter S corporation for health insurance or | ||||||
18 | long-term
care insurance for that taxpayer or that | ||||||
19 | taxpayer's spouse or dependents, to
the extent that the | ||||||
20 | amount paid for that health insurance or long-term care
| ||||||
21 | insurance may be deducted under Section 213 of the | ||||||
22 | Internal Revenue Code, has not been deducted on the | ||||||
23 | federal income tax return of the taxpayer,
and does not | ||||||
24 | exceed the taxable income attributable to that | ||||||
25 | taxpayer's income,
self-employment income, or | ||||||
26 | Subchapter S corporation income; except that no
|
| |||||||
| |||||||
1 | deduction shall be allowed under this item (V) if the | ||||||
2 | taxpayer is eligible to
participate in any health | ||||||
3 | insurance or long-term care insurance plan of an
| ||||||
4 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
5 | amount of the health insurance and long-term care | ||||||
6 | insurance
subtracted under this item (V) shall be | ||||||
7 | determined by multiplying total
health insurance and | ||||||
8 | long-term care insurance premiums paid by the taxpayer
| ||||||
9 | times a number that represents the fractional | ||||||
10 | percentage of eligible medical
expenses under Section | ||||||
11 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
12 | deducted on the taxpayer's federal income tax return; | ||||||
13 | (W) For taxable years beginning on or after January | ||||||
14 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
15 | gross income
in the taxable year from amounts converted | ||||||
16 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
17 | exempt from the provisions of Section
250; | ||||||
18 | (X) For taxable year 1999 and thereafter, an amount | ||||||
19 | equal to the
amount of any (i) distributions, to the | ||||||
20 | extent includible in gross income for
federal income | ||||||
21 | tax purposes, made to the taxpayer because of his or | ||||||
22 | her status
as a victim of persecution for racial or | ||||||
23 | religious reasons by Nazi Germany or
any other Axis | ||||||
24 | regime or as an heir of the victim and (ii) items
of | ||||||
25 | income, to the extent
includible in gross income for | ||||||
26 | federal income tax purposes, attributable to,
derived |
| |||||||
| |||||||
1 | from or in any way related to assets stolen from, | ||||||
2 | hidden from, or
otherwise lost to a victim of
| ||||||
3 | persecution for racial or religious reasons by Nazi | ||||||
4 | Germany or any other Axis
regime immediately prior to, | ||||||
5 | during, and immediately after World War II,
including, | ||||||
6 | but
not limited to, interest on the proceeds receivable | ||||||
7 | as insurance
under policies issued to a victim of | ||||||
8 | persecution for racial or religious
reasons
by Nazi | ||||||
9 | Germany or any other Axis regime by European insurance | ||||||
10 | companies
immediately prior to and during World War II;
| ||||||
11 | provided, however, this subtraction from federal | ||||||
12 | adjusted gross income does not
apply to assets acquired | ||||||
13 | with such assets or with the proceeds from the sale of
| ||||||
14 | such assets; provided, further, this paragraph shall | ||||||
15 | only apply to a taxpayer
who was the first recipient of | ||||||
16 | such assets after their recovery and who is a
victim of | ||||||
17 | persecution for racial or religious reasons
by Nazi | ||||||
18 | Germany or any other Axis regime or as an heir of the | ||||||
19 | victim. The
amount of and the eligibility for any | ||||||
20 | public assistance, benefit, or
similar entitlement is | ||||||
21 | not affected by the inclusion of items (i) and (ii) of
| ||||||
22 | this paragraph in gross income for federal income tax | ||||||
23 | purposes.
This paragraph is exempt from the provisions | ||||||
24 | of Section 250; | ||||||
25 | (Y) For taxable years beginning on or after January | ||||||
26 | 1, 2002
and ending
on or before December 31, 2004, |
| |||||||
| |||||||
1 | moneys contributed in the taxable year to a College | ||||||
2 | Savings Pool account under
Section 16.5 of the State | ||||||
3 | Treasurer Act, except that amounts excluded from
gross | ||||||
4 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
5 | Revenue Code
shall not be considered moneys | ||||||
6 | contributed under this subparagraph (Y). For taxable | ||||||
7 | years beginning on or after January 1, 2005, a maximum | ||||||
8 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
9 | College Savings Pool account under Section 16.5 of the
| ||||||
10 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
11 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
12 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
13 | Internal
Revenue Code shall not be considered moneys | ||||||
14 | contributed under this subparagraph
(Y). For purposes | ||||||
15 | of this subparagraph, contributions made by an | ||||||
16 | employer on behalf of an employee, or matching | ||||||
17 | contributions made by an employee, shall be treated as | ||||||
18 | made by the employee. This
subparagraph (Y) is exempt | ||||||
19 | from the provisions of Section 250; | ||||||
20 | (Z) For taxable years 2001 and thereafter, for the | ||||||
21 | taxable year in
which the bonus depreciation deduction
| ||||||
22 | is taken on the taxpayer's federal income tax return | ||||||
23 | under
subsection (k) of Section 168 of the Internal | ||||||
24 | Revenue Code and for each
applicable taxable year | ||||||
25 | thereafter, an amount equal to "x", where: | ||||||
26 | (1) "y" equals the amount of the depreciation |
| |||||||
| |||||||
1 | deduction taken for the
taxable year
on the | ||||||
2 | taxpayer's federal income tax return on property | ||||||
3 | for which the bonus
depreciation deduction
was | ||||||
4 | taken in any year under subsection (k) of Section | ||||||
5 | 168 of the Internal
Revenue Code, but not including | ||||||
6 | the bonus depreciation deduction; | ||||||
7 | (2) for taxable years ending on or before | ||||||
8 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
9 | and then divided by 70 (or "y"
multiplied by | ||||||
10 | 0.429); and | ||||||
11 | (3) for taxable years ending after December | ||||||
12 | 31, 2005: | ||||||
13 | (i) for property on which a bonus | ||||||
14 | depreciation deduction of 30% of the adjusted | ||||||
15 | basis was taken, "x" equals "y" multiplied by | ||||||
16 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
17 | 0.429); and | ||||||
18 | (ii) for property on which a bonus | ||||||
19 | depreciation deduction of 50% of the adjusted | ||||||
20 | basis was taken, "x" equals "y" multiplied by | ||||||
21 | 1.0. | ||||||
22 | The aggregate amount deducted under this | ||||||
23 | subparagraph in all taxable
years for any one piece of | ||||||
24 | property may not exceed the amount of the bonus
| ||||||
25 | depreciation deduction
taken on that property on the | ||||||
26 | taxpayer's federal income tax return under
subsection |
| |||||||
| |||||||
1 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
2 | subparagraph (Z) is exempt from the provisions of | ||||||
3 | Section 250; | ||||||
4 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
5 | or otherwise disposes of
property for which the | ||||||
6 | taxpayer was required in any taxable year to make an
| ||||||
7 | addition modification under subparagraph (D-15), then | ||||||
8 | an amount equal to that
addition modification.
| ||||||
9 | If the taxpayer continues to own property through | ||||||
10 | the last day of the last tax year for which the | ||||||
11 | taxpayer may claim a depreciation deduction for | ||||||
12 | federal income tax purposes and for which the taxpayer | ||||||
13 | was required in any taxable year to make an addition | ||||||
14 | modification under subparagraph (D-15), then an amount | ||||||
15 | equal to that addition modification.
| ||||||
16 | The taxpayer is allowed to take the deduction under | ||||||
17 | this subparagraph
only once with respect to any one | ||||||
18 | piece of property. | ||||||
19 | This subparagraph (AA) is exempt from the | ||||||
20 | provisions of Section 250; | ||||||
21 | (BB) Any amount included in adjusted gross income, | ||||||
22 | other
than
salary,
received by a driver in a | ||||||
23 | ridesharing arrangement using a motor vehicle; | ||||||
24 | (CC) The amount of (i) any interest income (net of | ||||||
25 | the deductions allocable thereto) taken into account | ||||||
26 | for the taxable year with respect to a transaction with |
| |||||||
| |||||||
1 | a taxpayer that is required to make an addition | ||||||
2 | modification with respect to such transaction under | ||||||
3 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
4 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
5 | the amount of that addition modification, and
(ii) any | ||||||
6 | income from intangible property (net of the deductions | ||||||
7 | allocable thereto) taken into account for the taxable | ||||||
8 | year with respect to a transaction with a taxpayer that | ||||||
9 | is required to make an addition modification with | ||||||
10 | respect to such transaction under Section | ||||||
11 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
12 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
13 | addition modification. This subparagraph (CC) is | ||||||
14 | exempt from the provisions of Section 250; | ||||||
15 | (DD) An amount equal to the interest income taken | ||||||
16 | into account for the taxable year (net of the | ||||||
17 | deductions allocable thereto) with respect to | ||||||
18 | transactions with (i) a foreign person who would be a | ||||||
19 | member of the taxpayer's unitary business group but for | ||||||
20 | the fact that the foreign person's business activity | ||||||
21 | outside the United States is 80% or more of that | ||||||
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 |
| |||||||
| |||||||
1 | unitary business group because he or she is ordinarily | ||||||
2 | required to apportion business income under different | ||||||
3 | subsections of Section 304, but not to exceed the | ||||||
4 | addition modification required to be made for the same | ||||||
5 | taxable year under Section 203(a)(2)(D-17) for | ||||||
6 | interest paid, accrued, or incurred, directly or | ||||||
7 | indirectly, to the same person. This subparagraph (DD) | ||||||
8 | is exempt from the provisions of Section 250; | ||||||
9 | (EE) An amount equal to the income from intangible | ||||||
10 | property taken into account for the taxable year (net | ||||||
11 | of the 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(a)(2)(D-18) for | ||||||
26 | intangible expenses and costs paid, accrued, or |
| |||||||
| |||||||
1 | incurred, directly or indirectly, to the same foreign | ||||||
2 | person. This subparagraph (EE) is exempt from the | ||||||
3 | provisions of Section 250; | ||||||
4 | (FF) An amount equal to any amount awarded to the | ||||||
5 | taxpayer during the taxable year by the Court of Claims | ||||||
6 | under subsection (c) of Section 8 of the Court of | ||||||
7 | Claims Act for time unjustly served in a State prison. | ||||||
8 | This subparagraph (FF) is exempt from the provisions of | ||||||
9 | Section 250; and | ||||||
10 | (GG) For taxable years ending on or after December | ||||||
11 | 31, 2011, in the case of a taxpayer who was required to | ||||||
12 | add back any insurance premiums under Section | ||||||
13 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
14 | that part of a reimbursement received from the | ||||||
15 | insurance company equal to the amount of the expense or | ||||||
16 | loss (including expenses incurred by the insurance | ||||||
17 | company) that would have been taken into account as a | ||||||
18 | deduction for federal income tax purposes if the | ||||||
19 | expense or loss had been uninsured. If a taxpayer makes | ||||||
20 | the election provided for by this subparagraph (GG), | ||||||
21 | the insurer to which the premiums were paid must add | ||||||
22 | back to income the amount subtracted by the taxpayer | ||||||
23 | pursuant to this subparagraph (GG). This subparagraph | ||||||
24 | (GG) is exempt from the provisions of Section 250 ; and | ||||||
25 | . | ||||||
26 | (HH) An amount equal to all the ordinary and |
| |||||||
| |||||||
1 | necessary expenses paid or incurred during the taxable | ||||||
2 | year in carrying on the business of a cannabis | ||||||
3 | establishment as defined in Section 10 of the Cannabis | ||||||
4 | Regulation and Taxation Act if the cannabis | ||||||
5 | establishment is in compliance with that Act, | ||||||
6 | including: | ||||||
7 | (1) a reasonable allowance for salaries or | ||||||
8 | other compensation for personal services actually | ||||||
9 | rendered; | ||||||
10 | (2) traveling expenses, including amounts | ||||||
11 | expended for meals and lodging other than amounts | ||||||
12 | which are lavish or extravagant under the | ||||||
13 | circumstances, while away from home in the pursuit | ||||||
14 | of the business of the cannabis establishment; and | ||||||
15 | (3) rentals or other payments required to be | ||||||
16 | made as a condition to the continued use or | ||||||
17 | possession, for purposes of the business of a | ||||||
18 | cannabis establishment, of property to which the | ||||||
19 | taxpayer has not taken or is not taking title or in | ||||||
20 | which he or she has no equity.
| ||||||
21 | (b) Corporations. | ||||||
22 | (1) In general. In the case of a corporation, base | ||||||
23 | income means an
amount equal to the taxpayer's taxable | ||||||
24 | income for the taxable year as
modified by paragraph (2). | ||||||
25 | (2) Modifications. The taxable income referred to in |
| |||||||
| |||||||
1 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
2 | of the following amounts: | ||||||
3 | (A) An amount equal to all amounts paid or accrued | ||||||
4 | to the taxpayer
as interest and all distributions | ||||||
5 | received from regulated investment
companies during | ||||||
6 | the taxable year to the extent excluded from gross
| ||||||
7 | income 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 in | ||||||
10 | the computation of taxable income
for the taxable year; | ||||||
11 | (C) In the case of a regulated investment company, | ||||||
12 | an amount equal to
the excess of (i) the net long-term | ||||||
13 | capital gain for the taxable year, over
(ii) the amount | ||||||
14 | of the capital gain dividends designated as such in | ||||||
15 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
16 | Revenue Code and any amount
designated under Section | ||||||
17 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
18 | attributable to the taxable year (this amendatory Act | ||||||
19 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
20 | law and is not a new
enactment); | ||||||
21 | (D) The amount of any net operating loss deduction | ||||||
22 | taken in arriving
at taxable income, other than a net | ||||||
23 | operating loss carried forward from a
taxable year | ||||||
24 | ending prior to December 31, 1986; | ||||||
25 | (E) For taxable years in which a net operating loss | ||||||
26 | carryback or
carryforward from a taxable year ending |
| |||||||
| |||||||
1 | prior to December 31, 1986 is an
element of taxable | ||||||
2 | income under paragraph (1) of subsection (e) or
| ||||||
3 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
4 | the amount by which
addition modifications other than | ||||||
5 | those provided by this subparagraph (E)
exceeded | ||||||
6 | subtraction modifications in such earlier taxable | ||||||
7 | year, with the
following limitations applied in the | ||||||
8 | order that they are listed: | ||||||
9 | (i) the addition modification relating to the | ||||||
10 | net operating loss
carried back or forward to the | ||||||
11 | taxable year from any taxable year ending
prior to | ||||||
12 | December 31, 1986 shall be reduced by the amount of | ||||||
13 | addition
modification under this subparagraph (E) | ||||||
14 | which related to that net operating
loss and which | ||||||
15 | was taken into account in calculating the base | ||||||
16 | income of an
earlier taxable year, and | ||||||
17 | (ii) the addition modification relating to the | ||||||
18 | net operating loss
carried back or forward to the | ||||||
19 | taxable year from any taxable year ending
prior to | ||||||
20 | December 31, 1986 shall not exceed the amount of | ||||||
21 | such carryback or
carryforward; | ||||||
22 | For taxable years in which there is a net operating | ||||||
23 | loss carryback or
carryforward from more than one other | ||||||
24 | taxable year ending prior to December
31, 1986, the | ||||||
25 | addition modification provided in this subparagraph | ||||||
26 | (E) shall
be the sum of the amounts computed |
| |||||||
| |||||||
1 | independently under the preceding
provisions of this | ||||||
2 | subparagraph (E) for each such taxable year; | ||||||
3 | (E-5) For taxable years ending after December 31, | ||||||
4 | 1997, an
amount equal to any eligible remediation costs | ||||||
5 | that the corporation
deducted in computing adjusted | ||||||
6 | gross income and for which the
corporation claims a | ||||||
7 | credit under subsection (l) of Section 201; | ||||||
8 | (E-10) For taxable years 2001 and thereafter, an | ||||||
9 | amount equal to the
bonus depreciation deduction taken | ||||||
10 | on the taxpayer's federal income tax return for the | ||||||
11 | taxable
year under subsection (k) of Section 168 of the | ||||||
12 | Internal Revenue Code; | ||||||
13 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
14 | or otherwise disposes of property for which the | ||||||
15 | taxpayer was required in any taxable year to
make an | ||||||
16 | addition modification under subparagraph (E-10), then | ||||||
17 | an amount equal
to the aggregate amount of the | ||||||
18 | deductions taken in all taxable
years under | ||||||
19 | subparagraph (T) with respect to that property. | ||||||
20 | If the taxpayer continues to own property through | ||||||
21 | the last day of the last tax year for which the | ||||||
22 | taxpayer may claim a depreciation deduction for | ||||||
23 | federal income tax purposes and for which the taxpayer | ||||||
24 | was allowed in any taxable year to make a subtraction | ||||||
25 | modification under subparagraph (T), then an amount | ||||||
26 | equal to that subtraction modification.
|
| |||||||
| |||||||
1 | The taxpayer is required to make the addition | ||||||
2 | modification under this
subparagraph
only once with | ||||||
3 | respect to any one piece of property; | ||||||
4 | (E-12) An amount equal to the amount otherwise | ||||||
5 | allowed as a deduction in computing base income for | ||||||
6 | interest paid, accrued, or incurred, directly or | ||||||
7 | indirectly, (i) for taxable years ending on or after | ||||||
8 | December 31, 2004, to a foreign person who would be a | ||||||
9 | member of the same unitary business group but for the | ||||||
10 | fact the foreign person's business activity outside | ||||||
11 | the United States is 80% or more of the foreign | ||||||
12 | person's total business activity and (ii) for taxable | ||||||
13 | years ending on or after December 31, 2008, to a person | ||||||
14 | who would be a member of the same unitary business | ||||||
15 | group but for the fact that the person is prohibited | ||||||
16 | under Section 1501(a)(27) from being included in the | ||||||
17 | unitary business group because he or she is ordinarily | ||||||
18 | required to apportion business income under different | ||||||
19 | subsections of Section 304. The addition modification | ||||||
20 | required by this subparagraph shall be reduced to the | ||||||
21 | extent that dividends were included in base income of | ||||||
22 | the unitary group for the same taxable year and | ||||||
23 | received by the taxpayer or by a member of the | ||||||
24 | taxpayer's unitary business group (including amounts | ||||||
25 | included in gross income pursuant to Sections 951 | ||||||
26 | through 964 of the Internal Revenue Code and amounts |
| |||||||
| |||||||
1 | included in gross income under Section 78 of the | ||||||
2 | Internal Revenue Code) with respect to the stock of the | ||||||
3 | same person to whom the interest was paid, accrued, or | ||||||
4 | incurred.
| ||||||
5 | This paragraph shall not apply to the following:
| ||||||
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
|
| |||||||
| |||||||
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
| ||||||
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).
| ||||||
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;
| ||||||
23 | (E-13) 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 |
| |||||||
| |||||||
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 pursuant to Sections 951 through 964 of the | ||||||
20 | Internal Revenue Code and amounts included in gross | ||||||
21 | income under Section 78 of the Internal Revenue Code) | ||||||
22 | with respect to the stock of the same person to whom | ||||||
23 | the intangible expenses and costs were directly or | ||||||
24 | indirectly paid, incurred, or accrued. The preceding | ||||||
25 | sentence shall not apply to the extent that the same | ||||||
26 | dividends caused a reduction to the addition |
| |||||||
| |||||||
1 | modification required under Section 203(b)(2)(E-12) of | ||||||
2 | this Act.
As used in this subparagraph, the term | ||||||
3 | "intangible expenses and costs" includes (1) expenses, | ||||||
4 | losses, and costs for, or related to, the direct or | ||||||
5 | indirect acquisition, use, maintenance or management, | ||||||
6 | ownership, sale, exchange, or any other disposition of | ||||||
7 | intangible property; (2) losses incurred, directly or | ||||||
8 | indirectly, from factoring transactions or discounting | ||||||
9 | transactions; (3) royalty, patent, technical, and | ||||||
10 | copyright fees; (4) licensing fees; and (5) other | ||||||
11 | similar expenses and costs.
For purposes of this | ||||||
12 | subparagraph, "intangible property" includes patents, | ||||||
13 | patent applications, trade names, trademarks, service | ||||||
14 | marks, copyrights, mask works, trade secrets, and | ||||||
15 | similar types of intangible 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 |
| |||||||
| |||||||
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);
| ||||||
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 |
| |||||||
| |||||||
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;
| ||||||
5 | (E-14) 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 |
| |||||||
| |||||||
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(b)(2)(E-12) or | ||||||
4 | Section 203(b)(2)(E-13) of this Act;
| ||||||
5 | (E-15) For taxable years beginning after December | ||||||
6 | 31, 2008, any deduction for dividends paid by a captive | ||||||
7 | real estate investment trust that is allowed to a real | ||||||
8 | estate investment trust under Section 857(b)(2)(B) of | ||||||
9 | the Internal Revenue Code for dividends paid; | ||||||
10 | (E-16) An amount equal to the credit allowable to | ||||||
11 | the taxpayer under Section 218(a) of this Act, | ||||||
12 | determined without regard to Section 218(c) of this | ||||||
13 | Act; | ||||||
14 | and by deducting from the total so obtained the sum of the | ||||||
15 | following
amounts: | ||||||
16 | (F) An amount equal to the amount of any tax | ||||||
17 | imposed by this Act
which was refunded to the taxpayer | ||||||
18 | and included in such total for the
taxable year; | ||||||
19 | (G) An amount equal to any amount included in such | ||||||
20 | total under
Section 78 of the Internal Revenue Code; | ||||||
21 | (H) In the case of a regulated investment company, | ||||||
22 | an amount equal
to the amount of exempt interest | ||||||
23 | dividends as defined in subsection (b)
(5) of Section | ||||||
24 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
25 | for the taxable year; | ||||||
26 | (I) With the exception of any amounts subtracted |
| |||||||
| |||||||
1 | under subparagraph
(J),
an amount equal to the sum of | ||||||
2 | all amounts disallowed as
deductions by (i) Sections | ||||||
3 | 171(a) (2), and 265(a)(2) and amounts disallowed as
| ||||||
4 | interest expense by Section 291(a)(3) of the Internal | ||||||
5 | Revenue Code, and all amounts of expenses allocable to | ||||||
6 | interest and
disallowed as deductions by Section | ||||||
7 | 265(a)(1) of the Internal Revenue Code;
and (ii) for | ||||||
8 | taxable years
ending on or after August 13, 1999, | ||||||
9 | Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
10 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
11 | for tax years ending on or after December 31, 2011, | ||||||
12 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
13 | of the Internal Revenue Code and, for taxable years | ||||||
14 | ending on or after December 31, 2008, any amount | ||||||
15 | included in gross income under Section 87 of the | ||||||
16 | Internal Revenue Code and the policyholders' share of | ||||||
17 | tax-exempt interest of a life insurance company under | ||||||
18 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
19 | the case of a life insurance company with gross income | ||||||
20 | from a decrease in reserves for the tax year) or | ||||||
21 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
22 | the case of a life insurance company allowed a | ||||||
23 | deduction for an increase in reserves for the tax | ||||||
24 | year); the
provisions of this
subparagraph are exempt | ||||||
25 | from the provisions of Section 250; | ||||||
26 | (J) An amount equal to all amounts included in such |
| |||||||
| |||||||
1 | total which are
exempt from taxation by this State | ||||||
2 | either by reason of its statutes or
Constitution
or by | ||||||
3 | reason of the Constitution, treaties or statutes of the | ||||||
4 | 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 | (K) An amount equal to those dividends included in | ||||||
10 | such total
which were paid by a corporation which | ||||||
11 | conducts
business operations in a River Edge | ||||||
12 | Redevelopment Zone or zones created under the River | ||||||
13 | Edge Redevelopment Zone Act and conducts substantially | ||||||
14 | all of its
operations in a River Edge Redevelopment | ||||||
15 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
16 | provisions of Section 250; | ||||||
17 | (L) An amount equal to those dividends included in | ||||||
18 | such total that
were paid by a corporation that | ||||||
19 | conducts business operations in a federally
designated | ||||||
20 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
21 | High Impact
Business located in Illinois; provided | ||||||
22 | that dividends eligible for the
deduction provided in | ||||||
23 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
24 | shall not be eligible for the deduction provided under | ||||||
25 | this subparagraph
(L); | ||||||
26 | (M) For any taxpayer that is a financial |
| |||||||
| |||||||
1 | organization within the meaning
of Section 304(c) of | ||||||
2 | this Act, an amount included in such total as interest
| ||||||
3 | income from a loan or loans made by such taxpayer to a | ||||||
4 | borrower, to the extent
that such a loan is secured by | ||||||
5 | property which is eligible for the River Edge | ||||||
6 | Redevelopment Zone Investment Credit. To determine the | ||||||
7 | portion of a loan or loans that is
secured by property | ||||||
8 | eligible for a Section 201(f) investment
credit to the | ||||||
9 | borrower, the entire principal amount of the loan or | ||||||
10 | loans
between the taxpayer and the borrower should be | ||||||
11 | divided into the basis of the
Section 201(f) investment | ||||||
12 | credit property which secures the
loan or loans, using | ||||||
13 | for this purpose the original basis of such property on
| ||||||
14 | the date that it was placed in service in the River | ||||||
15 | Edge Redevelopment Zone. The subtraction modification | ||||||
16 | available to taxpayer in any
year under this subsection | ||||||
17 | shall be that portion of the total interest paid
by the | ||||||
18 | borrower with respect to such loan attributable to the | ||||||
19 | eligible
property as calculated under the previous | ||||||
20 | sentence. This subparagraph (M) is exempt from the | ||||||
21 | provisions of Section 250; | ||||||
22 | (M-1) For any taxpayer that is a financial | ||||||
23 | organization within the
meaning of Section 304(c) of | ||||||
24 | this Act, an amount included in such total as
interest | ||||||
25 | income from a loan or loans made by such taxpayer to a | ||||||
26 | borrower,
to the extent that such a loan is secured by |
| |||||||
| |||||||
1 | property which is eligible for
the High Impact Business | ||||||
2 | Investment Credit. To determine the portion of a
loan | ||||||
3 | or loans that is secured by property eligible for a | ||||||
4 | Section 201(h) investment credit to the borrower, the | ||||||
5 | entire principal amount of
the loan or loans between | ||||||
6 | the taxpayer and the borrower should be divided into
| ||||||
7 | the basis of the Section 201(h) investment credit | ||||||
8 | property which
secures the loan or loans, using for | ||||||
9 | this purpose the original basis of such
property on the | ||||||
10 | date that it was placed in service in a federally | ||||||
11 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
12 | Illinois. No taxpayer that is
eligible for the | ||||||
13 | deduction provided in subparagraph (M) of paragraph | ||||||
14 | (2) of
this subsection shall be eligible for the | ||||||
15 | deduction provided under this
subparagraph (M-1). The | ||||||
16 | subtraction modification available to taxpayers in
any | ||||||
17 | year under this subsection shall be that portion of the | ||||||
18 | total interest
paid by the borrower with respect to | ||||||
19 | such loan attributable to the eligible
property as | ||||||
20 | calculated under the previous sentence; | ||||||
21 | (N) Two times any contribution made during the | ||||||
22 | taxable year to a
designated zone organization to the | ||||||
23 | extent that the contribution (i)
qualifies as a | ||||||
24 | charitable contribution under subsection (c) of | ||||||
25 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
26 | by its terms, be used for a
project approved by the |
| |||||||
| |||||||
1 | Department of Commerce and Economic Opportunity under | ||||||
2 | Section 11 of the Illinois Enterprise Zone Act or under | ||||||
3 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
4 | This subparagraph (N) is exempt from the provisions of | ||||||
5 | Section 250; | ||||||
6 | (O) An amount equal to: (i) 85% for taxable years | ||||||
7 | ending on or before
December 31, 1992, or, a percentage | ||||||
8 | equal to the percentage allowable under
Section | ||||||
9 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
10 | taxable years ending
after December 31, 1992, of the | ||||||
11 | amount by which dividends included in taxable
income | ||||||
12 | and received from a corporation that is not created or | ||||||
13 | organized under
the laws of the United States or any | ||||||
14 | state or political subdivision thereof,
including, for | ||||||
15 | taxable years ending on or after December 31, 1988, | ||||||
16 | dividends
received or deemed received or paid or deemed | ||||||
17 | paid under Sections 951 through
965 of the Internal | ||||||
18 | Revenue Code, exceed the amount of the modification
| ||||||
19 | provided under subparagraph (G) of paragraph (2) of | ||||||
20 | this subsection (b) which
is related to such dividends, | ||||||
21 | and including, for taxable years ending on or after | ||||||
22 | December 31, 2008, dividends received from a captive | ||||||
23 | real estate investment trust; plus (ii) 100% of the | ||||||
24 | amount by which dividends,
included in taxable income | ||||||
25 | and received, including, for taxable years ending on
or | ||||||
26 | after December 31, 1988, dividends received or deemed |
| |||||||
| |||||||
1 | received or paid or
deemed paid under Sections 951 | ||||||
2 | through 964 of the Internal Revenue Code and including, | ||||||
3 | for taxable years ending on or after December 31, 2008, | ||||||
4 | dividends received from a captive real estate | ||||||
5 | investment trust, from
any such corporation specified | ||||||
6 | in clause (i) that would but for the provisions
of | ||||||
7 | Section 1504 (b) (3) of the Internal Revenue Code be | ||||||
8 | treated as a member of
the affiliated group which | ||||||
9 | includes the dividend recipient, exceed the amount
of | ||||||
10 | the modification provided under subparagraph (G) of | ||||||
11 | paragraph (2) of this
subsection (b) which is related | ||||||
12 | to such dividends. This subparagraph (O) is exempt from | ||||||
13 | the provisions of Section 250 of this Act; | ||||||
14 | (P) An amount equal to any contribution made to a | ||||||
15 | job training project
established pursuant to the Tax | ||||||
16 | Increment Allocation Redevelopment Act; | ||||||
17 | (Q) An amount equal to the amount of the deduction | ||||||
18 | used to compute the
federal income tax credit for | ||||||
19 | restoration of substantial amounts held under
claim of | ||||||
20 | right for the taxable year pursuant to Section 1341 of | ||||||
21 | the
Internal Revenue Code; | ||||||
22 | (R) On and after July 20, 1999, in the case of an | ||||||
23 | attorney-in-fact with respect to whom an
interinsurer | ||||||
24 | or a reciprocal insurer has made the election under | ||||||
25 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
26 | 835, an amount equal to the excess, if
any, of the |
| |||||||
| |||||||
1 | amounts paid or incurred by that interinsurer or | ||||||
2 | reciprocal insurer
in the taxable year to the | ||||||
3 | attorney-in-fact over the deduction allowed to that
| ||||||
4 | interinsurer or reciprocal insurer with respect to the | ||||||
5 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
6 | Revenue Code for the taxable year; the provisions of | ||||||
7 | this subparagraph are exempt from the provisions of | ||||||
8 | Section 250; | ||||||
9 | (S) For taxable years ending on or after December | ||||||
10 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
11 | amount equal to all amounts of income allocable to a
| ||||||
12 | shareholder subject to the Personal Property Tax | ||||||
13 | Replacement Income Tax imposed
by subsections (c) and | ||||||
14 | (d) of Section 201 of this Act, including amounts
| ||||||
15 | allocable to organizations exempt from federal income | ||||||
16 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
17 | Code. This subparagraph (S) is exempt from
the | ||||||
18 | provisions of Section 250; | ||||||
19 | (T) For taxable years 2001 and thereafter, for the | ||||||
20 | taxable year in
which the bonus depreciation deduction
| ||||||
21 | is taken on the taxpayer's federal income tax return | ||||||
22 | under
subsection (k) of Section 168 of the Internal | ||||||
23 | Revenue Code and for each
applicable taxable year | ||||||
24 | thereafter, an amount equal to "x", where: | ||||||
25 | (1) "y" equals the amount of the depreciation | ||||||
26 | deduction taken for the
taxable year
on the |
| |||||||
| |||||||
1 | taxpayer's federal income tax return on property | ||||||
2 | for which the bonus
depreciation deduction
was | ||||||
3 | taken in any year under subsection (k) of Section | ||||||
4 | 168 of the Internal
Revenue Code, but not including | ||||||
5 | the bonus depreciation deduction; | ||||||
6 | (2) for taxable years ending on or before | ||||||
7 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
8 | and then divided by 70 (or "y"
multiplied by | ||||||
9 | 0.429); and | ||||||
10 | (3) for taxable years ending after December | ||||||
11 | 31, 2005: | ||||||
12 | (i) for property on which a bonus | ||||||
13 | depreciation deduction of 30% of the adjusted | ||||||
14 | basis was taken, "x" equals "y" multiplied by | ||||||
15 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
16 | 0.429); and | ||||||
17 | (ii) for property on which a bonus | ||||||
18 | depreciation deduction of 50% of the adjusted | ||||||
19 | basis was taken, "x" equals "y" multiplied by | ||||||
20 | 1.0. | ||||||
21 | The aggregate amount deducted under this | ||||||
22 | subparagraph in all taxable
years for any one piece of | ||||||
23 | property may not exceed the amount of the bonus
| ||||||
24 | depreciation deduction
taken on that property on the | ||||||
25 | taxpayer's federal income tax return under
subsection | ||||||
26 | (k) of Section 168 of the Internal Revenue Code. This |
| |||||||
| |||||||
1 | subparagraph (T) is exempt from the provisions of | ||||||
2 | Section 250; | ||||||
3 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
4 | otherwise disposes of
property for which the taxpayer | ||||||
5 | was required in any taxable year to make an
addition | ||||||
6 | modification under subparagraph (E-10), then an amount | ||||||
7 | equal to that
addition modification. | ||||||
8 | If the taxpayer continues to own property through | ||||||
9 | the last day of the last tax year for which the | ||||||
10 | taxpayer may claim a depreciation deduction for | ||||||
11 | federal income tax purposes and for which the taxpayer | ||||||
12 | was required in any taxable year to make an addition | ||||||
13 | modification under subparagraph (E-10), then an amount | ||||||
14 | equal to that addition modification.
| ||||||
15 | The taxpayer is allowed to take the deduction under | ||||||
16 | this subparagraph
only once with respect to any one | ||||||
17 | piece of property. | ||||||
18 | This subparagraph (U) is exempt from the | ||||||
19 | provisions of Section 250; | ||||||
20 | (V) The amount of: (i) any interest income (net of | ||||||
21 | the deductions allocable thereto) taken into account | ||||||
22 | for the taxable year with respect to a transaction with | ||||||
23 | a taxpayer that is required to make an addition | ||||||
24 | modification with respect to such transaction under | ||||||
25 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
26 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
| |||||||
| |||||||
1 | the amount of such addition modification,
(ii) any | ||||||
2 | income from intangible property (net of the deductions | ||||||
3 | allocable thereto) taken into account for the taxable | ||||||
4 | year with respect to a transaction with a taxpayer that | ||||||
5 | is required to make an addition modification with | ||||||
6 | respect to such transaction under Section | ||||||
7 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
8 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
9 | addition modification, and (iii) any insurance premium | ||||||
10 | income (net of deductions allocable thereto) taken | ||||||
11 | into account for the taxable year with respect to a | ||||||
12 | transaction with a taxpayer that is required to make an | ||||||
13 | addition modification with respect to such transaction | ||||||
14 | under Section 203(a)(2)(D-19), Section | ||||||
15 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
16 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
17 | addition modification. This subparagraph (V) is exempt | ||||||
18 | from the provisions of Section 250;
| ||||||
19 | (W) An amount equal to the interest income taken | ||||||
20 | into account for the taxable year (net of the | ||||||
21 | 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 |
| |||||||
| |||||||
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(b)(2)(E-12) for | ||||||
10 | interest paid, accrued, or incurred, directly or | ||||||
11 | indirectly, to the same person. This subparagraph (W) | ||||||
12 | is exempt from the provisions of Section 250;
| ||||||
13 | (X) An amount equal to the income from intangible | ||||||
14 | property taken into account for the taxable year (net | ||||||
15 | of the deductions allocable thereto) with respect to | ||||||
16 | transactions with (i) a foreign person who would be a | ||||||
17 | member of the taxpayer's unitary business group but for | ||||||
18 | the fact that the foreign person's business activity | ||||||
19 | outside the United States is 80% or more of that | ||||||
20 | person's total business activity and (ii) for taxable | ||||||
21 | years ending on or after December 31, 2008, to a person | ||||||
22 | who would be a member of the same unitary business | ||||||
23 | group but for the fact that the person is prohibited | ||||||
24 | under Section 1501(a)(27) from being included in the | ||||||
25 | unitary business group because he or she is ordinarily | ||||||
26 | required to apportion business income under different |
| |||||||
| |||||||
1 | subsections of Section 304, but not to exceed the | ||||||
2 | addition modification required to be made for the same | ||||||
3 | taxable year under Section 203(b)(2)(E-13) for | ||||||
4 | intangible expenses and costs paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to the same foreign | ||||||
6 | person. This subparagraph (X) is exempt from the | ||||||
7 | provisions of Section 250;
| ||||||
8 | (Y) For taxable years ending on or after December | ||||||
9 | 31, 2011, in the case of a taxpayer who was required to | ||||||
10 | add back any insurance premiums under Section | ||||||
11 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
12 | that part of a reimbursement received from the | ||||||
13 | insurance company equal to the amount of the expense or | ||||||
14 | loss (including expenses incurred by the insurance | ||||||
15 | company) that would have been taken into account as a | ||||||
16 | deduction for federal income tax purposes if the | ||||||
17 | expense or loss had been uninsured. If a taxpayer makes | ||||||
18 | the election provided for by this subparagraph (Y), the | ||||||
19 | insurer to which the premiums were paid must add back | ||||||
20 | to income the amount subtracted by the taxpayer | ||||||
21 | pursuant to this subparagraph (Y). This subparagraph | ||||||
22 | (Y) is exempt from the provisions of Section 250; and | ||||||
23 | (Z) The difference between the nondeductible | ||||||
24 | controlled foreign corporation dividends under Section | ||||||
25 | 965(e)(3) of the Internal Revenue Code over the taxable | ||||||
26 | income of the taxpayer, computed without regard to |
| |||||||
| |||||||
1 | Section 965(e)(2)(A) of the Internal Revenue Code, and | ||||||
2 | without regard to any net operating loss deduction. | ||||||
3 | This subparagraph (Z) is exempt from the provisions of | ||||||
4 | Section 250 ; and . | ||||||
5 | (AA) An amount equal to all the ordinary and | ||||||
6 | necessary expenses paid or incurred during the taxable | ||||||
7 | year in carrying on the business of a cannabis | ||||||
8 | establishment as defined in Section 10 of the Cannabis | ||||||
9 | Regulation and Taxation Act if the cannabis | ||||||
10 | establishment is in compliance with that Act, | ||||||
11 | including: | ||||||
12 | (1) a reasonable allowance for salaries or | ||||||
13 | other compensation for personal services actually | ||||||
14 | rendered; | ||||||
15 | (2) traveling expenses, including amounts | ||||||
16 | expended for meals and lodging other than amounts | ||||||
17 | which are lavish or extravagant under the | ||||||
18 | circumstances, while away from home in the pursuit | ||||||
19 | of the business of the cannabis establishment; and | ||||||
20 | (3) rentals or other payments required to be | ||||||
21 | made as a condition to the continued use or | ||||||
22 | possession, for purposes of the business of a | ||||||
23 | cannabis establishment, of property to which the | ||||||
24 | taxpayer has not taken or is not taking title or in | ||||||
25 | which he has no equity. | ||||||
26 | (3) Special rule. For purposes of paragraph (2) (A), |
| |||||||
| |||||||
1 | "gross income"
in the case of a life insurance company, for | ||||||
2 | tax years ending on and after
December 31, 1994,
and prior | ||||||
3 | to December 31, 2011, shall mean the gross investment | ||||||
4 | income for the taxable year and, for tax years ending on or | ||||||
5 | after December 31, 2011, shall mean all amounts included in | ||||||
6 | life insurance gross income under Section 803(a)(3) of the | ||||||
7 | Internal Revenue Code.
| ||||||
8 | (c) Trusts and estates. | ||||||
9 | (1) In general. In the case of a trust or estate, base | ||||||
10 | income means
an amount equal to the taxpayer's taxable | ||||||
11 | income for the taxable year as
modified by paragraph (2). | ||||||
12 | (2) Modifications. Subject to the provisions of | ||||||
13 | paragraph (3), the
taxable income referred to in paragraph | ||||||
14 | (1) shall be modified by adding
thereto the sum of the | ||||||
15 | following amounts: | ||||||
16 | (A) An amount equal to all amounts paid or accrued | ||||||
17 | to the taxpayer
as interest or dividends during the | ||||||
18 | taxable year to the extent excluded
from gross income | ||||||
19 | in the computation of taxable income; | ||||||
20 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
21 | trust which, under
its governing instrument, is | ||||||
22 | required to distribute all of its income
currently, | ||||||
23 | $300; and (iii) any other trust, $100, but in each such | ||||||
24 | case,
only to the extent such amount was deducted in | ||||||
25 | the computation of
taxable income; |
| |||||||
| |||||||
1 | (C) An amount equal to the amount of tax imposed by | ||||||
2 | this Act to the
extent deducted from gross income in | ||||||
3 | the computation of taxable income
for the taxable year; | ||||||
4 | (D) The amount of any net operating loss deduction | ||||||
5 | taken in arriving at
taxable income, other than a net | ||||||
6 | operating loss carried forward from a
taxable year | ||||||
7 | ending prior to December 31, 1986; | ||||||
8 | (E) For taxable years in which a net operating loss | ||||||
9 | carryback or
carryforward from a taxable year ending | ||||||
10 | prior to December 31, 1986 is an
element of taxable | ||||||
11 | income under paragraph (1) of subsection (e) or | ||||||
12 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
13 | the amount by which addition
modifications other than | ||||||
14 | those provided by this subparagraph (E) exceeded
| ||||||
15 | subtraction modifications in such taxable year, with | ||||||
16 | the following limitations
applied in the order that | ||||||
17 | they are listed: | ||||||
18 | (i) the addition modification relating to the | ||||||
19 | net operating loss
carried back or forward to the | ||||||
20 | taxable year from any taxable year ending
prior to | ||||||
21 | December 31, 1986 shall be reduced by the amount of | ||||||
22 | addition
modification under this subparagraph (E) | ||||||
23 | which related to that net
operating loss and which | ||||||
24 | was taken into account in calculating the base
| ||||||
25 | income of an earlier taxable year, and | ||||||
26 | (ii) the addition modification relating to the |
| |||||||
| |||||||
1 | net operating loss
carried back or forward to the | ||||||
2 | taxable year from any taxable year ending
prior to | ||||||
3 | December 31, 1986 shall not exceed the amount of | ||||||
4 | such carryback or
carryforward; | ||||||
5 | For taxable years in which there is a net operating | ||||||
6 | loss carryback or
carryforward from more than one other | ||||||
7 | taxable year ending prior to December
31, 1986, the | ||||||
8 | addition modification provided in this subparagraph | ||||||
9 | (E) shall
be the sum of the amounts computed | ||||||
10 | independently under the preceding
provisions of this | ||||||
11 | subparagraph (E) for each such taxable year; | ||||||
12 | (F) For taxable years ending on or after January 1, | ||||||
13 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
14 | Section 164 of the Internal Revenue
Code if the trust | ||||||
15 | or estate is claiming the same tax for purposes of the
| ||||||
16 | Illinois foreign tax credit under Section 601 of this | ||||||
17 | Act; | ||||||
18 | (G) 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 taxable income; | ||||||
22 | (G-5) For taxable years ending after December 31, | ||||||
23 | 1997, an
amount equal to any eligible remediation costs | ||||||
24 | that the trust or estate
deducted in computing adjusted | ||||||
25 | gross income and for which the trust
or estate claims a | ||||||
26 | credit under subsection (l) of Section 201; |
| |||||||
| |||||||
1 | (G-10) For taxable years 2001 and thereafter, an | ||||||
2 | amount equal to the
bonus depreciation deduction taken | ||||||
3 | on the taxpayer's federal income tax return for the | ||||||
4 | taxable
year under subsection (k) of Section 168 of the | ||||||
5 | Internal Revenue Code; and | ||||||
6 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
7 | or otherwise disposes of property for which the | ||||||
8 | taxpayer was required in any taxable year to
make an | ||||||
9 | addition modification under subparagraph (G-10), then | ||||||
10 | an amount equal
to the aggregate amount of the | ||||||
11 | deductions taken in all taxable
years under | ||||||
12 | subparagraph (R) with respect to that property. | ||||||
13 | If the taxpayer continues to own property through | ||||||
14 | the last day of the last tax year for which the | ||||||
15 | taxpayer may claim a depreciation deduction for | ||||||
16 | federal income tax purposes and for which the taxpayer | ||||||
17 | was allowed in any taxable year to make a subtraction | ||||||
18 | modification under subparagraph (R), then an amount | ||||||
19 | equal to that subtraction modification.
| ||||||
20 | The taxpayer is required to make the addition | ||||||
21 | modification under this
subparagraph
only once with | ||||||
22 | respect to any one piece of property; | ||||||
23 | (G-12) An amount equal to the amount otherwise | ||||||
24 | allowed as a deduction in computing base income for | ||||||
25 | interest paid, accrued, or incurred, directly or | ||||||
26 | indirectly, (i) for taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2004, to a foreign person who would be a | ||||||
2 | member of the same unitary business group but for the | ||||||
3 | fact that the foreign person's business activity | ||||||
4 | outside the United States is 80% or more of the foreign | ||||||
5 | person's total business activity and (ii) for taxable | ||||||
6 | years ending on or after December 31, 2008, to a person | ||||||
7 | who would be a member of the same unitary business | ||||||
8 | group but for the fact that the person is prohibited | ||||||
9 | under Section 1501(a)(27) from being included in the | ||||||
10 | unitary business group because he or she is ordinarily | ||||||
11 | required to apportion business income under different | ||||||
12 | subsections of Section 304. The addition modification | ||||||
13 | required by this subparagraph shall be reduced to the | ||||||
14 | extent that dividends were included in base income of | ||||||
15 | the unitary group for the same taxable year and | ||||||
16 | received by the taxpayer or by a member of the | ||||||
17 | taxpayer's unitary business group (including amounts | ||||||
18 | included in gross income pursuant to Sections 951 | ||||||
19 | through 964 of the Internal Revenue Code and amounts | ||||||
20 | included in gross income under Section 78 of the | ||||||
21 | Internal Revenue Code) with respect to the stock of the | ||||||
22 | same person to whom the interest was paid, accrued, or | ||||||
23 | incurred.
| ||||||
24 | This paragraph shall not apply to the following:
| ||||||
25 | (i) an item of interest paid, accrued, or | ||||||
26 | incurred, directly or indirectly, to a person who |
| |||||||
| |||||||
1 | is subject in a foreign country or state, other | ||||||
2 | than a state which requires mandatory unitary | ||||||
3 | reporting, to a tax on or measured by net income | ||||||
4 | with respect to such interest; or | ||||||
5 | (ii) an item of interest paid, accrued, or | ||||||
6 | incurred, directly or indirectly, to a person if | ||||||
7 | the taxpayer can establish, based on a | ||||||
8 | preponderance of the evidence, both of the | ||||||
9 | following: | ||||||
10 | (a) the person, during the same taxable | ||||||
11 | year, paid, accrued, or incurred, the interest | ||||||
12 | to a person that is not a related member, and | ||||||
13 | (b) the transaction giving rise to the | ||||||
14 | interest expense between the taxpayer and the | ||||||
15 | person did not have as a principal purpose the | ||||||
16 | avoidance of Illinois income tax, and is paid | ||||||
17 | pursuant to a contract or agreement that | ||||||
18 | reflects an arm's-length interest rate and | ||||||
19 | terms; or
| ||||||
20 | (iii) the taxpayer can establish, based on | ||||||
21 | clear and convincing evidence, that the interest | ||||||
22 | paid, accrued, or incurred relates to a contract or | ||||||
23 | agreement entered into at arm's-length rates and | ||||||
24 | terms and the principal purpose for the payment is | ||||||
25 | not federal or Illinois tax avoidance; or
| ||||||
26 | (iv) an item of interest paid, accrued, or |
| |||||||
| |||||||
1 | incurred, directly or indirectly, to a person if | ||||||
2 | the taxpayer establishes by clear and convincing | ||||||
3 | evidence that the adjustments are unreasonable; or | ||||||
4 | if the taxpayer and the Director agree in writing | ||||||
5 | to the application or use of an alternative method | ||||||
6 | of apportionment under Section 304(f).
| ||||||
7 | Nothing in this subsection shall preclude the | ||||||
8 | Director from making any other adjustment | ||||||
9 | otherwise allowed under Section 404 of this Act for | ||||||
10 | any tax year beginning after the effective date of | ||||||
11 | this amendment provided such adjustment is made | ||||||
12 | pursuant to regulation adopted by the Department | ||||||
13 | and such regulations provide methods and standards | ||||||
14 | by which the Department will utilize its authority | ||||||
15 | under Section 404 of this Act;
| ||||||
16 | (G-13) An amount equal to the amount of intangible | ||||||
17 | expenses and costs otherwise allowed as a deduction in | ||||||
18 | computing base income, and that were paid, accrued, or | ||||||
19 | incurred, directly or indirectly, (i) for taxable | ||||||
20 | years ending on or after December 31, 2004, to a | ||||||
21 | foreign person who would be a member of the same | ||||||
22 | unitary business group but for the fact that the | ||||||
23 | foreign person's business activity outside the United | ||||||
24 | States is 80% or more of that person's total business | ||||||
25 | activity and (ii) for taxable years ending on or after | ||||||
26 | December 31, 2008, to a person who would be a member of |
| |||||||
| |||||||
1 | the same unitary business group but for the fact that | ||||||
2 | the person is prohibited under Section 1501(a)(27) | ||||||
3 | from being included in the unitary business group | ||||||
4 | because he or she is ordinarily required to apportion | ||||||
5 | business income under different subsections of Section | ||||||
6 | 304. The addition modification required by this | ||||||
7 | subparagraph shall be reduced to the extent that | ||||||
8 | dividends were included in base income of the unitary | ||||||
9 | group for the same taxable year and received by the | ||||||
10 | taxpayer or by a member of the taxpayer's unitary | ||||||
11 | business group (including amounts included in gross | ||||||
12 | income pursuant to Sections 951 through 964 of the | ||||||
13 | Internal Revenue Code and amounts included in gross | ||||||
14 | income under Section 78 of the Internal Revenue Code) | ||||||
15 | with respect to the stock of the same person to whom | ||||||
16 | the intangible expenses and costs were directly or | ||||||
17 | indirectly paid, incurred, or accrued. The preceding | ||||||
18 | sentence shall not apply to the extent that the same | ||||||
19 | dividends caused a reduction to the addition | ||||||
20 | modification required under Section 203(c)(2)(G-12) of | ||||||
21 | this Act. As used in this subparagraph, the term | ||||||
22 | "intangible expenses and costs" includes: (1) | ||||||
23 | expenses, losses, and costs for or related to the | ||||||
24 | direct or indirect acquisition, use, maintenance or | ||||||
25 | management, ownership, sale, exchange, or any other | ||||||
26 | disposition of intangible property; (2) losses |
| |||||||
| |||||||
1 | incurred, directly or indirectly, from factoring | ||||||
2 | transactions or discounting transactions; (3) royalty, | ||||||
3 | patent, technical, and copyright fees; (4) licensing | ||||||
4 | fees; and (5) other similar expenses and costs. For | ||||||
5 | purposes of this subparagraph, "intangible property" | ||||||
6 | includes patents, patent applications, trade names, | ||||||
7 | trademarks, service marks, copyrights, mask works, | ||||||
8 | trade secrets, and similar types of intangible assets. | ||||||
9 | This paragraph shall not apply to the following: | ||||||
10 | (i) any item of intangible expenses or costs | ||||||
11 | paid, accrued, or incurred, directly or | ||||||
12 | indirectly, from a transaction with a person who is | ||||||
13 | subject in a foreign country or state, other than a | ||||||
14 | state which requires mandatory unitary reporting, | ||||||
15 | to a tax on or measured by net income with respect | ||||||
16 | to such item; or | ||||||
17 | (ii) any item of intangible expense or cost | ||||||
18 | paid, accrued, or incurred, directly or | ||||||
19 | indirectly, if the taxpayer can establish, based | ||||||
20 | on a preponderance of the evidence, both of the | ||||||
21 | following: | ||||||
22 | (a) the person during the same taxable | ||||||
23 | year paid, accrued, or incurred, the | ||||||
24 | intangible expense or cost to a person that is | ||||||
25 | not a related member, and | ||||||
26 | (b) the transaction giving rise to the |
| |||||||
| |||||||
1 | intangible expense or cost between the | ||||||
2 | taxpayer and the person did not have as a | ||||||
3 | principal purpose the avoidance of Illinois | ||||||
4 | income tax, and is paid pursuant to a contract | ||||||
5 | or agreement that reflects arm's-length terms; | ||||||
6 | or | ||||||
7 | (iii) any item of intangible expense or cost | ||||||
8 | paid, accrued, or incurred, directly or | ||||||
9 | indirectly, from a transaction with a person if the | ||||||
10 | taxpayer establishes by clear and convincing | ||||||
11 | evidence, that the adjustments are unreasonable; | ||||||
12 | or if the taxpayer and the Director agree in | ||||||
13 | writing to the application or use of an alternative | ||||||
14 | method of apportionment under Section 304(f);
| ||||||
15 | Nothing in this subsection shall preclude the | ||||||
16 | Director from making any other adjustment | ||||||
17 | otherwise allowed under Section 404 of this Act for | ||||||
18 | any tax year beginning after the effective date of | ||||||
19 | this amendment provided such adjustment is made | ||||||
20 | pursuant to regulation adopted by the Department | ||||||
21 | and such regulations provide methods and standards | ||||||
22 | by which the Department will utilize its authority | ||||||
23 | under Section 404 of this Act;
| ||||||
24 | (G-14) For taxable years ending on or after | ||||||
25 | December 31, 2008, an amount equal to the amount of | ||||||
26 | insurance premium expenses and costs otherwise allowed |
| |||||||
| |||||||
1 | as a deduction in computing base income, and that were | ||||||
2 | paid, accrued, or incurred, directly or indirectly, to | ||||||
3 | a person who would be a member of the same unitary | ||||||
4 | business group but for the fact that the person is | ||||||
5 | prohibited under Section 1501(a)(27) from being | ||||||
6 | included in the unitary business group because he or | ||||||
7 | she is ordinarily required to apportion business | ||||||
8 | income under different subsections of Section 304. The | ||||||
9 | addition modification required by this subparagraph | ||||||
10 | shall be reduced to the extent that dividends were | ||||||
11 | included in base income of the unitary group for the | ||||||
12 | same taxable year and received by the taxpayer or by a | ||||||
13 | member of the taxpayer's unitary business group | ||||||
14 | (including amounts included in gross income under | ||||||
15 | Sections 951 through 964 of the Internal Revenue Code | ||||||
16 | and amounts included in gross income under Section 78 | ||||||
17 | of the Internal Revenue Code) with respect to the stock | ||||||
18 | of the same person to whom the premiums and costs were | ||||||
19 | directly or indirectly paid, incurred, or accrued. The | ||||||
20 | preceding sentence does not apply to the extent that | ||||||
21 | the same dividends caused a reduction to the addition | ||||||
22 | modification required under Section 203(c)(2)(G-12) or | ||||||
23 | Section 203(c)(2)(G-13) of this Act; | ||||||
24 | (G-15) An amount equal to the credit allowable to | ||||||
25 | the taxpayer under Section 218(a) of this Act, | ||||||
26 | determined without regard to Section 218(c) of this |
| |||||||
| |||||||
1 | Act; | ||||||
2 | and by deducting from the total so obtained the sum of the | ||||||
3 | following
amounts: | ||||||
4 | (H) An amount equal to all amounts included in such | ||||||
5 | total pursuant
to the provisions of Sections 402(a), | ||||||
6 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
7 | Internal Revenue Code or included in such total as
| ||||||
8 | distributions under the provisions of any retirement | ||||||
9 | or disability plan for
employees of any governmental | ||||||
10 | agency or unit, or retirement payments to
retired | ||||||
11 | partners, which payments are excluded in computing net | ||||||
12 | earnings
from self employment by Section 1402 of the | ||||||
13 | Internal Revenue Code and
regulations adopted pursuant | ||||||
14 | thereto; | ||||||
15 | (I) The valuation limitation amount; | ||||||
16 | (J) An amount equal to the amount of any tax | ||||||
17 | imposed by this Act
which was refunded to the taxpayer | ||||||
18 | and included in such total for the
taxable year; | ||||||
19 | (K) An amount equal to all amounts included in | ||||||
20 | taxable income as
modified by subparagraphs (A), (B), | ||||||
21 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
22 | taxation by this State either by reason of its statutes | ||||||
23 | or
Constitution
or by reason of the Constitution, | ||||||
24 | treaties or statutes of the United States;
provided | ||||||
25 | that, in the case of any statute of this State that | ||||||
26 | exempts income
derived from bonds or other obligations |
| |||||||
| |||||||
1 | from the tax imposed under this Act,
the amount | ||||||
2 | exempted shall be the interest net of bond premium | ||||||
3 | amortization; | ||||||
4 | (L) With the exception of any amounts subtracted | ||||||
5 | under subparagraph
(K),
an amount equal to the sum of | ||||||
6 | all amounts disallowed as
deductions by (i) Sections | ||||||
7 | 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
8 | and all amounts of expenses allocable
to interest and | ||||||
9 | disallowed as deductions by Section 265(1) of the | ||||||
10 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
11 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
12 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
13 | Code, plus, (iii) for taxable years ending on or after | ||||||
14 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
15 | Revenue Code and, for taxable years ending on or after | ||||||
16 | December 31, 2008, any amount included in gross income | ||||||
17 | under Section 87 of the Internal Revenue Code; the | ||||||
18 | provisions of this
subparagraph are exempt from the | ||||||
19 | provisions of Section 250; | ||||||
20 | (M) An amount equal to those dividends included in | ||||||
21 | such total
which were paid by a corporation which | ||||||
22 | conducts business operations in a River Edge | ||||||
23 | Redevelopment Zone or zones created under the River | ||||||
24 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
25 | all of its operations in a River Edge Redevelopment | ||||||
26 | Zone or zones. This subparagraph (M) is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250; | ||||||
2 | (N) An amount equal to any contribution made to a | ||||||
3 | job training
project established pursuant to the Tax | ||||||
4 | Increment Allocation
Redevelopment Act; | ||||||
5 | (O) An amount equal to those dividends included in | ||||||
6 | such total
that were paid by a corporation that | ||||||
7 | conducts business operations in a
federally designated | ||||||
8 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
9 | High Impact Business located in Illinois; provided | ||||||
10 | that dividends eligible
for the deduction provided in | ||||||
11 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
12 | shall not be eligible for the deduction provided under | ||||||
13 | this
subparagraph (O); | ||||||
14 | (P) An amount equal to the amount of the deduction | ||||||
15 | used to compute the
federal income tax credit for | ||||||
16 | restoration of substantial amounts held under
claim of | ||||||
17 | right for the taxable year pursuant to Section 1341 of | ||||||
18 | the
Internal Revenue Code; | ||||||
19 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
20 | equal to the
amount of any
(i) distributions, to the | ||||||
21 | extent includible in gross income for
federal income | ||||||
22 | tax purposes, made to the taxpayer because of
his or | ||||||
23 | her status as a victim of
persecution for racial or | ||||||
24 | religious reasons by Nazi Germany or any other Axis
| ||||||
25 | regime or as an heir of the victim and (ii) items
of | ||||||
26 | income, to the extent
includible in gross income for |
| |||||||
| |||||||
1 | federal income tax purposes, attributable to,
derived | ||||||
2 | from or in any way related to assets stolen from, | ||||||
3 | hidden from, or
otherwise lost to a victim of
| ||||||
4 | persecution for racial or religious reasons by Nazi
| ||||||
5 | Germany or any other Axis regime
immediately prior to, | ||||||
6 | during, and immediately after World War II, including,
| ||||||
7 | but
not limited to, interest on the proceeds receivable | ||||||
8 | as insurance
under policies issued to a victim of | ||||||
9 | persecution for racial or religious
reasons by Nazi | ||||||
10 | Germany or any other Axis regime by European insurance
| ||||||
11 | companies
immediately prior to and during World War II;
| ||||||
12 | provided, however, this subtraction from federal | ||||||
13 | adjusted gross income does not
apply to assets acquired | ||||||
14 | with such assets or with the proceeds from the sale of
| ||||||
15 | such assets; provided, further, this paragraph shall | ||||||
16 | only apply to a taxpayer
who was the first recipient of | ||||||
17 | such assets after their recovery and who is a
victim of
| ||||||
18 | persecution for racial or religious reasons
by Nazi | ||||||
19 | Germany or any other Axis regime or as an heir of the | ||||||
20 | victim. The
amount of and the eligibility for any | ||||||
21 | public assistance, benefit, or
similar entitlement is | ||||||
22 | not affected by the inclusion of items (i) and (ii) of
| ||||||
23 | this paragraph in gross income for federal income tax | ||||||
24 | purposes.
This paragraph is exempt from the provisions | ||||||
25 | of Section 250; | ||||||
26 | (R) For taxable years 2001 and thereafter, for the |
| |||||||
| |||||||
1 | taxable year in
which the bonus depreciation deduction
| ||||||
2 | is taken on the taxpayer's federal income tax return | ||||||
3 | under
subsection (k) of Section 168 of the Internal | ||||||
4 | Revenue Code and for each
applicable taxable year | ||||||
5 | thereafter, an amount equal to "x", where: | ||||||
6 | (1) "y" equals the amount of the depreciation | ||||||
7 | deduction taken for the
taxable year
on the | ||||||
8 | taxpayer's federal income tax return on property | ||||||
9 | for which the bonus
depreciation deduction
was | ||||||
10 | taken in any year under subsection (k) of Section | ||||||
11 | 168 of the Internal
Revenue Code, but not including | ||||||
12 | the bonus depreciation deduction; | ||||||
13 | (2) for taxable years ending on or before | ||||||
14 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
15 | and then divided by 70 (or "y"
multiplied by | ||||||
16 | 0.429); and | ||||||
17 | (3) for taxable years ending after December | ||||||
18 | 31, 2005: | ||||||
19 | (i) for property on which a bonus | ||||||
20 | depreciation deduction of 30% of the adjusted | ||||||
21 | basis was taken, "x" equals "y" multiplied by | ||||||
22 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
23 | 0.429); and | ||||||
24 | (ii) for property on which a bonus | ||||||
25 | depreciation deduction of 50% of the adjusted | ||||||
26 | basis was taken, "x" equals "y" multiplied by |
| |||||||
| |||||||
1 | 1.0. | ||||||
2 | The aggregate amount deducted under this | ||||||
3 | subparagraph in all taxable
years for any one piece of | ||||||
4 | property may not exceed the amount of the bonus
| ||||||
5 | depreciation deduction
taken on that property on the | ||||||
6 | taxpayer's federal income tax return under
subsection | ||||||
7 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
8 | subparagraph (R) is exempt from the provisions of | ||||||
9 | Section 250; | ||||||
10 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
11 | otherwise disposes of
property for which the taxpayer | ||||||
12 | was required in any taxable year to make an
addition | ||||||
13 | modification under subparagraph (G-10), then an amount | ||||||
14 | equal to that
addition modification. | ||||||
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 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 | The taxpayer is allowed to take the deduction under | ||||||
23 | this subparagraph
only once with respect to any one | ||||||
24 | piece of property. | ||||||
25 | This subparagraph (S) is exempt from the | ||||||
26 | provisions of Section 250; |
| |||||||
| |||||||
1 | (T) The amount of (i) any interest income (net of | ||||||
2 | the deductions allocable thereto) taken into account | ||||||
3 | for the taxable year with respect to a transaction with | ||||||
4 | a taxpayer that is required to make an addition | ||||||
5 | modification with respect to such transaction under | ||||||
6 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
7 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
8 | the amount of such addition modification and
(ii) any | ||||||
9 | income from intangible property (net of the deductions | ||||||
10 | allocable thereto) taken into account for the taxable | ||||||
11 | year with respect to a transaction with a taxpayer that | ||||||
12 | is required to make an addition modification with | ||||||
13 | respect to such transaction under Section | ||||||
14 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
15 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
16 | addition modification. This subparagraph (T) is exempt | ||||||
17 | from the provisions of Section 250;
| ||||||
18 | (U) 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 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 |
| |||||||
| |||||||
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(c)(2)(G-12) for | ||||||
9 | interest paid, accrued, or incurred, directly or | ||||||
10 | indirectly, to the same person. This subparagraph (U) | ||||||
11 | is exempt from the provisions of Section 250; | ||||||
12 | (V) 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 |
| |||||||
| |||||||
1 | addition modification required to be made for the same | ||||||
2 | taxable year under Section 203(c)(2)(G-13) for | ||||||
3 | intangible expenses and costs paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to the same foreign | ||||||
5 | person. This subparagraph (V) is exempt from the | ||||||
6 | provisions of Section 250;
| ||||||
7 | (W) in the case of an estate, an amount equal to | ||||||
8 | all amounts included in such total pursuant to the | ||||||
9 | provisions of Section 111 of the Internal Revenue Code | ||||||
10 | as a recovery of items previously deducted by the | ||||||
11 | decedent from adjusted gross income in the computation | ||||||
12 | of taxable income. This subparagraph (W) is exempt from | ||||||
13 | Section 250; | ||||||
14 | (X) an amount equal to the refund included in such | ||||||
15 | total of any tax deducted for federal income tax | ||||||
16 | purposes, to the extent that deduction was added back | ||||||
17 | under subparagraph (F). This subparagraph (X) is | ||||||
18 | exempt from the provisions of Section 250; and | ||||||
19 | (Y) For taxable years ending on or after December | ||||||
20 | 31, 2011, in the case of a taxpayer who was required to | ||||||
21 | add back any insurance premiums under Section | ||||||
22 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
23 | that part of a reimbursement received from the | ||||||
24 | insurance company equal to the amount of the expense or | ||||||
25 | loss (including expenses incurred by the insurance | ||||||
26 | company) that would have been taken into account as a |
| |||||||
| |||||||
1 | deduction for federal income tax purposes if the | ||||||
2 | expense or loss had been uninsured. If a taxpayer makes | ||||||
3 | the election provided for by this subparagraph (Y), the | ||||||
4 | insurer to which the premiums were paid must add back | ||||||
5 | to income the amount subtracted by the taxpayer | ||||||
6 | pursuant to this subparagraph (Y). This subparagraph | ||||||
7 | (Y) is exempt from the provisions of Section 250 ; and . | ||||||
8 | (Z) An amount equal to all the ordinary and | ||||||
9 | necessary expenses paid or incurred during the taxable | ||||||
10 | year in carrying on the business of a cannabis | ||||||
11 | establishment as defined in Section 10 of the Cannabis | ||||||
12 | Regulation and Taxation Act if the cannabis | ||||||
13 | establishment is in compliance with that Act, | ||||||
14 | including: | ||||||
15 | (1) a reasonable allowance for salaries or | ||||||
16 | other compensation for personal services actually | ||||||
17 | rendered; | ||||||
18 | (2) traveling expenses, including amounts | ||||||
19 | expended for meals and lodging other than amounts | ||||||
20 | which are lavish or extravagant under the | ||||||
21 | circumstances, while away from home in the pursuit | ||||||
22 | of the business of the cannabis establishment; and | ||||||
23 | (3) rentals or other payments required to be | ||||||
24 | made as a condition to the continued use or | ||||||
25 | possession, for purposes of the business of a | ||||||
26 | cannabis establishment, of property to which the |
| |||||||
| |||||||
1 | taxpayer has not taken or is not taking title or in | ||||||
2 | which he has no equity. | ||||||
3 | (3) Limitation. The amount of any modification | ||||||
4 | otherwise required
under this subsection shall, under | ||||||
5 | regulations prescribed by the
Department, be adjusted by | ||||||
6 | any amounts included therein which were
properly paid, | ||||||
7 | credited, or required to be distributed, or permanently set
| ||||||
8 | aside for charitable purposes pursuant to Internal Revenue | ||||||
9 | Code Section
642(c) during the taxable year.
| ||||||
10 | (d) Partnerships. | ||||||
11 | (1) In general. In the case of a partnership, base | ||||||
12 | income means an
amount equal to the taxpayer's taxable | ||||||
13 | income for the taxable year as
modified by paragraph (2). | ||||||
14 | (2) Modifications. The taxable income referred to in | ||||||
15 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
16 | of the following amounts: | ||||||
17 | (A) An amount equal to all amounts paid or accrued | ||||||
18 | to the taxpayer as
interest or dividends during the | ||||||
19 | taxable year to the extent excluded from
gross income | ||||||
20 | in the computation of taxable income; | ||||||
21 | (B) An amount equal to the amount of tax imposed by | ||||||
22 | this Act to the
extent deducted from gross income for | ||||||
23 | the taxable year; | ||||||
24 | (C) The amount of deductions allowed to the | ||||||
25 | partnership pursuant to
Section 707 (c) of the Internal |
| |||||||
| |||||||
1 | Revenue Code in calculating its taxable income; | ||||||
2 | (D) An amount equal to the amount of the capital | ||||||
3 | gain deduction
allowable under the Internal Revenue | ||||||
4 | Code, to the extent deducted from
gross income in the | ||||||
5 | computation of taxable income; | ||||||
6 | (D-5) For taxable years 2001 and thereafter, an | ||||||
7 | amount equal to the
bonus depreciation deduction taken | ||||||
8 | on the taxpayer's federal income tax return for the | ||||||
9 | taxable
year under subsection (k) of Section 168 of the | ||||||
10 | Internal Revenue Code; | ||||||
11 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
12 | or otherwise disposes of
property for which the | ||||||
13 | taxpayer was required in any taxable year to make an
| ||||||
14 | addition modification under subparagraph (D-5), then | ||||||
15 | an amount equal to the
aggregate amount of the | ||||||
16 | deductions taken in all taxable years
under | ||||||
17 | subparagraph (O) with respect to that property. | ||||||
18 | If the taxpayer continues to own property through | ||||||
19 | the last day of the last tax year for which the | ||||||
20 | taxpayer may claim a depreciation deduction for | ||||||
21 | federal income tax purposes and for which the taxpayer | ||||||
22 | was allowed in any taxable year to make a subtraction | ||||||
23 | modification under subparagraph (O), then an amount | ||||||
24 | equal to that subtraction modification.
| ||||||
25 | The taxpayer is required to make the addition | ||||||
26 | modification under this
subparagraph
only once with |
| |||||||
| |||||||
1 | respect to any one piece of property; | ||||||
2 | (D-7) An amount equal to the amount otherwise | ||||||
3 | allowed as a deduction in computing base income for | ||||||
4 | interest paid, accrued, or incurred, directly or | ||||||
5 | indirectly, (i) for taxable years ending on or after | ||||||
6 | December 31, 2004, to a foreign person who would be a | ||||||
7 | member of the same unitary business group but for the | ||||||
8 | fact the foreign person's business activity outside | ||||||
9 | the United States is 80% or more of the foreign | ||||||
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. The addition modification | ||||||
18 | required by this subparagraph shall be reduced to the | ||||||
19 | extent that dividends were included in base income of | ||||||
20 | the unitary group for the same taxable year and | ||||||
21 | received by the taxpayer or by a member of the | ||||||
22 | taxpayer's unitary business group (including amounts | ||||||
23 | included in gross income pursuant to Sections 951 | ||||||
24 | through 964 of the Internal Revenue Code and amounts | ||||||
25 | included in gross income under Section 78 of the | ||||||
26 | Internal Revenue Code) with respect to the stock of the |
| |||||||
| |||||||
1 | same person to whom the interest was paid, accrued, or | ||||||
2 | incurred.
| ||||||
3 | This paragraph shall not apply to the following:
| ||||||
4 | (i) an item of interest paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to a person who | ||||||
6 | is subject in a foreign country or state, other | ||||||
7 | than a state which requires mandatory unitary | ||||||
8 | reporting, to a tax on or measured by net income | ||||||
9 | with respect to such interest; or | ||||||
10 | (ii) an item of interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to a person if | ||||||
12 | the taxpayer can establish, based on a | ||||||
13 | preponderance of the evidence, both of the | ||||||
14 | following: | ||||||
15 | (a) the person, during the same taxable | ||||||
16 | year, paid, accrued, or incurred, the interest | ||||||
17 | to a person that is not a related member, and | ||||||
18 | (b) the transaction giving rise to the | ||||||
19 | interest expense between the taxpayer and the | ||||||
20 | person did not have as a principal purpose the | ||||||
21 | avoidance of Illinois income tax, and is paid | ||||||
22 | pursuant to a contract or agreement that | ||||||
23 | reflects an arm's-length interest rate and | ||||||
24 | terms; or
| ||||||
25 | (iii) the taxpayer can establish, based on | ||||||
26 | clear and convincing evidence, that the interest |
| |||||||
| |||||||
1 | paid, accrued, or incurred relates to a contract or | ||||||
2 | agreement entered into at arm's-length rates and | ||||||
3 | terms and the principal purpose for the payment is | ||||||
4 | not federal or Illinois tax avoidance; or
| ||||||
5 | (iv) an item of interest paid, accrued, or | ||||||
6 | incurred, directly or indirectly, to a person if | ||||||
7 | the taxpayer establishes by clear and convincing | ||||||
8 | evidence that the adjustments are unreasonable; or | ||||||
9 | if the taxpayer and the Director agree in writing | ||||||
10 | to the application or use of an alternative method | ||||||
11 | of apportionment under Section 304(f).
| ||||||
12 | Nothing in this subsection shall preclude the | ||||||
13 | Director from making any other adjustment | ||||||
14 | otherwise allowed under Section 404 of this Act for | ||||||
15 | any tax year beginning after the effective date of | ||||||
16 | this amendment provided such adjustment is made | ||||||
17 | pursuant to regulation adopted by the Department | ||||||
18 | and such regulations provide methods and standards | ||||||
19 | by which the Department will utilize its authority | ||||||
20 | under Section 404 of this Act; and
| ||||||
21 | (D-8) An amount equal to the amount of intangible | ||||||
22 | expenses and costs otherwise allowed as a deduction in | ||||||
23 | computing base income, and that were paid, accrued, or | ||||||
24 | incurred, directly or indirectly, (i) for taxable | ||||||
25 | years ending on or after December 31, 2004, to a | ||||||
26 | foreign person who would be a member of the same |
| |||||||
| |||||||
1 | unitary business group but for the fact that the | ||||||
2 | foreign person's business activity outside the United | ||||||
3 | States is 80% or more of that person's total business | ||||||
4 | activity and (ii) for taxable years ending on or after | ||||||
5 | December 31, 2008, to a person who would be a member of | ||||||
6 | the same unitary business group but for the fact that | ||||||
7 | the person is prohibited under Section 1501(a)(27) | ||||||
8 | from being included in the unitary business group | ||||||
9 | because he or she is ordinarily required to apportion | ||||||
10 | business income under different subsections of Section | ||||||
11 | 304. The addition modification required by this | ||||||
12 | subparagraph shall be reduced to the extent that | ||||||
13 | dividends were included in base income of the unitary | ||||||
14 | group for the same taxable year and received by the | ||||||
15 | taxpayer or by a member of the taxpayer's unitary | ||||||
16 | business group (including amounts included in gross | ||||||
17 | income pursuant to Sections 951 through 964 of the | ||||||
18 | Internal Revenue Code and amounts included in gross | ||||||
19 | income under Section 78 of the Internal Revenue Code) | ||||||
20 | with respect to the stock of the same person to whom | ||||||
21 | the intangible expenses and costs were directly or | ||||||
22 | indirectly paid, incurred or accrued. The preceding | ||||||
23 | sentence shall not apply to the extent that the same | ||||||
24 | dividends caused a reduction to the addition | ||||||
25 | modification required under Section 203(d)(2)(D-7) of | ||||||
26 | this Act. As used in this subparagraph, the term |
| |||||||
| |||||||
1 | "intangible expenses and costs" includes (1) expenses, | ||||||
2 | losses, and costs for, or related to, the direct or | ||||||
3 | indirect acquisition, use, maintenance or management, | ||||||
4 | ownership, sale, exchange, or any other disposition of | ||||||
5 | intangible property; (2) losses incurred, directly or | ||||||
6 | indirectly, from factoring transactions or discounting | ||||||
7 | transactions; (3) royalty, patent, technical, and | ||||||
8 | copyright fees; (4) licensing fees; and (5) other | ||||||
9 | similar expenses and costs. For purposes of this | ||||||
10 | subparagraph, "intangible property" includes patents, | ||||||
11 | patent applications, trade names, trademarks, service | ||||||
12 | marks, copyrights, mask works, trade secrets, and | ||||||
13 | similar types of intangible assets; | ||||||
14 | This paragraph shall not apply to the following: | ||||||
15 | (i) any item of intangible expenses or costs | ||||||
16 | paid, accrued, or incurred, directly or | ||||||
17 | indirectly, from a transaction with a person who is | ||||||
18 | subject in a foreign country or state, other than a | ||||||
19 | state which requires mandatory unitary reporting, | ||||||
20 | to a tax on or measured by net income with respect | ||||||
21 | to such item; or | ||||||
22 | (ii) any item of intangible expense or cost | ||||||
23 | paid, accrued, or incurred, directly or | ||||||
24 | indirectly, if the taxpayer can establish, based | ||||||
25 | on a preponderance of the evidence, both of the | ||||||
26 | following: |
| |||||||
| |||||||
1 | (a) the person during the same taxable | ||||||
2 | year paid, accrued, or incurred, the | ||||||
3 | intangible expense or cost to a person that is | ||||||
4 | not a related member, and | ||||||
5 | (b) the transaction giving rise to the | ||||||
6 | intangible expense or cost between the | ||||||
7 | taxpayer and the person did not have as a | ||||||
8 | principal purpose the avoidance of Illinois | ||||||
9 | income tax, and is paid pursuant to a contract | ||||||
10 | or agreement that reflects arm's-length terms; | ||||||
11 | or | ||||||
12 | (iii) any item of intangible expense or cost | ||||||
13 | paid, accrued, or incurred, directly or | ||||||
14 | indirectly, from a transaction with a person if the | ||||||
15 | taxpayer establishes by clear and convincing | ||||||
16 | evidence, that the adjustments are unreasonable; | ||||||
17 | or if the taxpayer and the Director agree in | ||||||
18 | writing to the application or use of an alternative | ||||||
19 | method of apportionment under Section 304(f);
| ||||||
20 | Nothing in this subsection shall preclude the | ||||||
21 | Director from making any other adjustment | ||||||
22 | otherwise allowed under Section 404 of this Act for | ||||||
23 | any tax year beginning after the effective date of | ||||||
24 | this amendment provided such adjustment is made | ||||||
25 | pursuant to regulation adopted by the Department | ||||||
26 | and such regulations provide methods and standards |
| |||||||
| |||||||
1 | by which the Department will utilize its authority | ||||||
2 | under Section 404 of this Act;
| ||||||
3 | (D-9) For taxable years ending on or after December | ||||||
4 | 31, 2008, an amount equal to the amount of insurance | ||||||
5 | premium expenses and costs otherwise allowed as a | ||||||
6 | deduction in computing base income, and that were paid, | ||||||
7 | accrued, or incurred, directly or indirectly, to a | ||||||
8 | person who would be a member of the same unitary | ||||||
9 | business group but for the fact that the person is | ||||||
10 | prohibited under Section 1501(a)(27) from being | ||||||
11 | included in the unitary business group because he or | ||||||
12 | she is ordinarily required to apportion business | ||||||
13 | income under different subsections of Section 304. The | ||||||
14 | addition modification required by this subparagraph | ||||||
15 | shall be reduced to the extent that dividends were | ||||||
16 | included in base income of the unitary group for the | ||||||
17 | same taxable year and received by the taxpayer or by a | ||||||
18 | member of the taxpayer's unitary business group | ||||||
19 | (including amounts included in gross income under | ||||||
20 | Sections 951 through 964 of the Internal Revenue Code | ||||||
21 | and amounts included in gross income under Section 78 | ||||||
22 | of the Internal Revenue Code) with respect to the stock | ||||||
23 | of the same person to whom the premiums and costs were | ||||||
24 | directly or indirectly paid, incurred, or accrued. The | ||||||
25 | preceding sentence does not apply to the extent that | ||||||
26 | the same dividends caused a reduction to the addition |
| |||||||
| |||||||
1 | modification required under Section 203(d)(2)(D-7) or | ||||||
2 | Section 203(d)(2)(D-8) of this Act; | ||||||
3 | (D-10) An amount equal to the credit allowable to | ||||||
4 | the taxpayer under Section 218(a) of this Act, | ||||||
5 | determined without regard to Section 218(c) of this | ||||||
6 | Act; | ||||||
7 | and by deducting from the total so obtained the following | ||||||
8 | amounts: | ||||||
9 | (E) The valuation limitation amount; | ||||||
10 | (F) An amount equal to the amount of any tax | ||||||
11 | imposed by this Act which
was refunded to the taxpayer | ||||||
12 | and included in such total for the taxable year; | ||||||
13 | (G) An amount equal to all amounts included in | ||||||
14 | taxable income as
modified by subparagraphs (A), (B), | ||||||
15 | (C) and (D) which are exempt from
taxation by this | ||||||
16 | State either by reason of its statutes or Constitution | ||||||
17 | or
by reason of
the Constitution, treaties or statutes | ||||||
18 | of the United States;
provided that, in the case of any | ||||||
19 | statute of this State that exempts income
derived from | ||||||
20 | bonds or other obligations from the tax imposed under | ||||||
21 | this Act,
the amount exempted shall be the interest net | ||||||
22 | of bond premium amortization; | ||||||
23 | (H) Any income of the partnership which | ||||||
24 | constitutes personal service
income as defined in | ||||||
25 | Section 1348 (b) (1) of the Internal Revenue Code (as
| ||||||
26 | in effect December 31, 1981) or a reasonable allowance |
| |||||||
| |||||||
1 | for compensation
paid or accrued for services rendered | ||||||
2 | by partners to the partnership,
whichever is greater; | ||||||
3 | this subparagraph (H) is exempt from the provisions of | ||||||
4 | Section 250; | ||||||
5 | (I) An amount equal to all amounts of income | ||||||
6 | distributable to an entity
subject to the Personal | ||||||
7 | Property Tax Replacement Income Tax imposed by
| ||||||
8 | subsections (c) and (d) of Section 201 of this Act | ||||||
9 | including amounts
distributable to organizations | ||||||
10 | exempt from federal income tax by reason of
Section | ||||||
11 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
12 | (I) is exempt from the provisions of Section 250; | ||||||
13 | (J) With the exception of any amounts subtracted | ||||||
14 | under subparagraph
(G),
an amount equal to the sum of | ||||||
15 | all amounts disallowed as deductions
by (i) Sections | ||||||
16 | 171(a) (2), and 265(2) of the Internal Revenue Code, | ||||||
17 | and all amounts of expenses allocable to
interest and | ||||||
18 | disallowed as deductions by Section 265(1) of the | ||||||
19 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
20 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
21 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
22 | Code, plus, (iii) for taxable years ending on or after | ||||||
23 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
24 | Revenue Code and, for taxable years ending on or after | ||||||
25 | December 31, 2008, any amount included in gross income | ||||||
26 | under Section 87 of the Internal Revenue Code; the |
| |||||||
| |||||||
1 | provisions of this
subparagraph are exempt from the | ||||||
2 | provisions of Section 250; | ||||||
3 | (K) An amount equal to those dividends included in | ||||||
4 | such total which were
paid by a corporation which | ||||||
5 | conducts business operations in a River Edge | ||||||
6 | Redevelopment Zone or zones created under the River | ||||||
7 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
8 | all of its operations
from a River Edge Redevelopment | ||||||
9 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
10 | provisions of Section 250; | ||||||
11 | (L) An amount equal to any contribution made to a | ||||||
12 | job training project
established pursuant to the Real | ||||||
13 | Property Tax Increment Allocation
Redevelopment Act; | ||||||
14 | (M) 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 (M); | ||||||
23 | (N) An amount equal to the amount of the deduction | ||||||
24 | used to compute the
federal income tax credit for | ||||||
25 | restoration of substantial amounts held under
claim of | ||||||
26 | right for the taxable year pursuant to Section 1341 of |
| |||||||
| |||||||
1 | the
Internal Revenue Code; | ||||||
2 | (O) For taxable years 2001 and thereafter, for the | ||||||
3 | taxable year in
which the bonus depreciation deduction
| ||||||
4 | is taken on the taxpayer's federal income tax return | ||||||
5 | under
subsection (k) of Section 168 of the Internal | ||||||
6 | Revenue Code and for each
applicable taxable year | ||||||
7 | thereafter, an amount equal to "x", where: | ||||||
8 | (1) "y" equals the amount of the depreciation | ||||||
9 | deduction taken for the
taxable year
on the | ||||||
10 | taxpayer's federal income tax return on property | ||||||
11 | for which the bonus
depreciation deduction
was | ||||||
12 | taken in any year under subsection (k) of Section | ||||||
13 | 168 of the Internal
Revenue Code, but not including | ||||||
14 | the bonus depreciation deduction; | ||||||
15 | (2) for taxable years ending on or before | ||||||
16 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
17 | and then divided by 70 (or "y"
multiplied by | ||||||
18 | 0.429); and | ||||||
19 | (3) for taxable years ending after December | ||||||
20 | 31, 2005: | ||||||
21 | (i) for property on which a bonus | ||||||
22 | depreciation deduction of 30% of the adjusted | ||||||
23 | basis was taken, "x" equals "y" multiplied by | ||||||
24 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
25 | 0.429); and | ||||||
26 | (ii) for property on which a bonus |
| |||||||
| |||||||
1 | depreciation deduction of 50% of the adjusted | ||||||
2 | basis was taken, "x" equals "y" multiplied by | ||||||
3 | 1.0. | ||||||
4 | The aggregate amount deducted under this | ||||||
5 | subparagraph in all taxable
years for any one piece of | ||||||
6 | property may not exceed the amount of the bonus
| ||||||
7 | depreciation deduction
taken on that property on the | ||||||
8 | taxpayer's federal income tax return under
subsection | ||||||
9 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
10 | subparagraph (O) is exempt from the provisions of | ||||||
11 | Section 250; | ||||||
12 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
13 | otherwise disposes of
property for which the taxpayer | ||||||
14 | was required in any taxable year to make an
addition | ||||||
15 | modification under subparagraph (D-5), then an amount | ||||||
16 | equal to that
addition modification. | ||||||
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 required in any taxable year to make an addition | ||||||
22 | modification under subparagraph (D-5), then an amount | ||||||
23 | equal to that addition modification.
| ||||||
24 | The taxpayer is allowed to take the deduction under | ||||||
25 | this subparagraph
only once with respect to any one | ||||||
26 | piece of property. |
| |||||||
| |||||||
1 | This subparagraph (P) is exempt from the | ||||||
2 | provisions of Section 250; | ||||||
3 | (Q) The amount of (i) any interest income (net of | ||||||
4 | the deductions allocable thereto) taken into account | ||||||
5 | for the taxable year with respect to a transaction with | ||||||
6 | a taxpayer that is required to make an addition | ||||||
7 | modification with respect to such transaction under | ||||||
8 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
9 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
10 | the amount of such addition modification and
(ii) any | ||||||
11 | income from intangible property (net of the deductions | ||||||
12 | allocable thereto) taken into account for the taxable | ||||||
13 | year with respect to a transaction with a taxpayer that | ||||||
14 | is required to make an addition modification with | ||||||
15 | respect to such transaction under Section | ||||||
16 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
17 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
18 | addition modification. This subparagraph (Q) is exempt | ||||||
19 | from Section 250;
| ||||||
20 | (R) An amount equal to the interest income taken | ||||||
21 | into account for the taxable year (net of the | ||||||
22 | deductions allocable thereto) with respect to | ||||||
23 | transactions with (i) a foreign person who would be a | ||||||
24 | member of the taxpayer's unitary business group but for | ||||||
25 | the fact that the foreign person's business activity | ||||||
26 | outside the United States is 80% or more of that |
| |||||||
| |||||||
1 | person's total business activity and (ii) for taxable | ||||||
2 | years ending on or after December 31, 2008, to a person | ||||||
3 | who would be a member of the same unitary business | ||||||
4 | group but for the fact that the person is prohibited | ||||||
5 | under Section 1501(a)(27) from being included in the | ||||||
6 | unitary business group because he or she is ordinarily | ||||||
7 | required to apportion business income under different | ||||||
8 | subsections of Section 304, but not to exceed the | ||||||
9 | addition modification required to be made for the same | ||||||
10 | taxable year under Section 203(d)(2)(D-7) for interest | ||||||
11 | paid, accrued, or incurred, directly or indirectly, to | ||||||
12 | the same person. This subparagraph (R) is exempt from | ||||||
13 | Section 250; | ||||||
14 | (S) An amount equal to the income from intangible | ||||||
15 | property taken into account for the taxable year (net | ||||||
16 | of the deductions allocable thereto) with respect to | ||||||
17 | transactions with (i) a foreign person who would be a | ||||||
18 | member of the taxpayer's unitary business group but for | ||||||
19 | the fact that the foreign person's business activity | ||||||
20 | outside the United States is 80% or more of that | ||||||
21 | person's total business activity and (ii) for taxable | ||||||
22 | years ending on or after December 31, 2008, to a person | ||||||
23 | who would be a member of the same unitary business | ||||||
24 | group but for the fact that the person is prohibited | ||||||
25 | under Section 1501(a)(27) from being included in the | ||||||
26 | unitary business group because he or she is ordinarily |
| |||||||
| |||||||
1 | required to apportion business income under different | ||||||
2 | subsections of Section 304, but not to exceed the | ||||||
3 | addition modification required to be made for the same | ||||||
4 | taxable year under Section 203(d)(2)(D-8) for | ||||||
5 | intangible expenses and costs paid, accrued, or | ||||||
6 | incurred, directly or indirectly, to the same person. | ||||||
7 | This subparagraph (S) is exempt from Section 250; and
| ||||||
8 | (T) For taxable years ending on or after December | ||||||
9 | 31, 2011, in the case of a taxpayer who was required to | ||||||
10 | add back any insurance premiums under Section | ||||||
11 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
12 | that part of a reimbursement received from the | ||||||
13 | insurance company equal to the amount of the expense or | ||||||
14 | loss (including expenses incurred by the insurance | ||||||
15 | company) that would have been taken into account as a | ||||||
16 | deduction for federal income tax purposes if the | ||||||
17 | expense or loss had been uninsured. If a taxpayer makes | ||||||
18 | the election provided for by this subparagraph (T), the | ||||||
19 | insurer to which the premiums were paid must add back | ||||||
20 | to income the amount subtracted by the taxpayer | ||||||
21 | pursuant to this subparagraph (T). This subparagraph | ||||||
22 | (T) is exempt from the provisions of Section 250 ; and . | ||||||
23 | (U) An amount equal to all the ordinary and | ||||||
24 | necessary expenses paid or incurred during the taxable | ||||||
25 | year in carrying on the business of a cannabis | ||||||
26 | establishment as defined in Section 10 of the Cannabis |
| |||||||
| |||||||
1 | Regulation and Taxation Act if the cannabis | ||||||
2 | establishment is in compliance with that Act, | ||||||
3 | including: | ||||||
4 | (1) a reasonable allowance for salaries or | ||||||
5 | other compensation for personal services actually | ||||||
6 | rendered; | ||||||
7 | (2) traveling expenses, including amounts | ||||||
8 | expended for meals and lodging other than amounts | ||||||
9 | which are lavish or extravagant under the | ||||||
10 | circumstances, while away from home in the pursuit | ||||||
11 | of the business of the cannabis establishment; and | ||||||
12 | (3) rentals or other payments required to be | ||||||
13 | made as a condition to the continued use or | ||||||
14 | possession, for purposes of the business of a | ||||||
15 | cannabis establishment, of property to which the | ||||||
16 | taxpayer has not taken or is not taking title or in | ||||||
17 | which he has no equity.
| ||||||
18 | (e) Gross income; adjusted gross income; taxable income. | ||||||
19 | (1) In general. Subject to the provisions of paragraph | ||||||
20 | (2) and
subsection (b) (3), for purposes of this Section | ||||||
21 | and Section 803(e), a
taxpayer's gross income, adjusted | ||||||
22 | gross income, or taxable income for
the taxable year shall | ||||||
23 | mean the amount of gross income, adjusted gross
income or | ||||||
24 | taxable income properly reportable for federal income tax
| ||||||
25 | purposes for the taxable year under the provisions of the |
| |||||||
| |||||||
1 | Internal
Revenue Code. Taxable income may be less than | ||||||
2 | zero. However, for taxable
years ending on or after | ||||||
3 | December 31, 1986, net operating loss
carryforwards from | ||||||
4 | taxable years ending prior to December 31, 1986, may not
| ||||||
5 | exceed the sum of federal taxable income for the taxable | ||||||
6 | year before net
operating loss deduction, plus the excess | ||||||
7 | of addition modifications over
subtraction modifications | ||||||
8 | for the taxable year. For taxable years ending
prior to | ||||||
9 | December 31, 1986, taxable income may never be an amount in | ||||||
10 | excess
of the net operating loss for the taxable year as | ||||||
11 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
12 | Internal Revenue Code, provided that when
taxable income of | ||||||
13 | a corporation (other than a Subchapter S corporation),
| ||||||
14 | trust, or estate is less than zero and addition | ||||||
15 | modifications, other than
those provided by subparagraph | ||||||
16 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
17 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
18 | trusts and estates, exceed subtraction modifications, an | ||||||
19 | addition
modification must be made under those | ||||||
20 | subparagraphs for any other taxable
year to which the | ||||||
21 | taxable income less than zero (net operating loss) is
| ||||||
22 | applied under Section 172 of the Internal Revenue Code or | ||||||
23 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
24 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
25 | Revenue Code. | ||||||
26 | (2) Special rule. For purposes of paragraph (1) of this |
| |||||||
| |||||||
1 | subsection,
the taxable income properly reportable for | ||||||
2 | federal income tax purposes
shall mean: | ||||||
3 | (A) Certain life insurance companies. In the case | ||||||
4 | of a life
insurance company subject to the tax imposed | ||||||
5 | by Section 801 of the
Internal Revenue Code, life | ||||||
6 | insurance company taxable income, plus the
amount of | ||||||
7 | distribution from pre-1984 policyholder surplus | ||||||
8 | accounts as
calculated under Section 815a of the | ||||||
9 | Internal Revenue Code; | ||||||
10 | (B) Certain other insurance companies. In the case | ||||||
11 | of mutual
insurance companies subject to the tax | ||||||
12 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
13 | insurance company taxable income; | ||||||
14 | (C) Regulated investment companies. In the case of | ||||||
15 | a regulated
investment company subject to the tax | ||||||
16 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
17 | investment company taxable income; | ||||||
18 | (D) Real estate investment trusts. In the case of a | ||||||
19 | real estate
investment trust subject to the tax imposed | ||||||
20 | by Section 857 of the
Internal Revenue Code, real | ||||||
21 | estate investment trust taxable income; | ||||||
22 | (E) Consolidated corporations. In the case of a | ||||||
23 | corporation which
is a member of an affiliated group of | ||||||
24 | corporations filing a consolidated
income tax return | ||||||
25 | for the taxable year for federal income tax purposes,
| ||||||
26 | taxable income determined as if such corporation had |
| |||||||
| |||||||
1 | filed a separate
return for federal income tax purposes | ||||||
2 | for the taxable year and each
preceding taxable year | ||||||
3 | for which it was a member of an affiliated group.
For | ||||||
4 | purposes of this subparagraph, the taxpayer's separate | ||||||
5 | taxable
income shall be determined as if the election | ||||||
6 | provided by Section
243(b) (2) of the Internal Revenue | ||||||
7 | Code had been in effect for all such years; | ||||||
8 | (F) Cooperatives. In the case of a cooperative | ||||||
9 | corporation or
association, the taxable income of such | ||||||
10 | organization determined in
accordance with the | ||||||
11 | provisions of Section 1381 through 1388 of the
Internal | ||||||
12 | Revenue Code, but without regard to the prohibition | ||||||
13 | against offsetting losses from patronage activities | ||||||
14 | against income from nonpatronage activities; except | ||||||
15 | that a cooperative corporation or association may make | ||||||
16 | an election to follow its federal income tax treatment | ||||||
17 | of patronage losses and nonpatronage losses. In the | ||||||
18 | event such election is made, such losses shall be | ||||||
19 | computed and carried over in a manner consistent with | ||||||
20 | subsection (a) of Section 207 of this Act and | ||||||
21 | apportioned by the apportionment factor reported by | ||||||
22 | the cooperative on its Illinois income tax return filed | ||||||
23 | for the taxable year in which the losses are incurred. | ||||||
24 | The election shall be effective for all taxable years | ||||||
25 | with original returns due on or after the date of the | ||||||
26 | election. In addition, the cooperative may file an |
| |||||||
| |||||||
1 | amended return or returns, as allowed under this Act, | ||||||
2 | to provide that the election shall be effective for | ||||||
3 | losses incurred or carried forward for taxable years | ||||||
4 | occurring prior to the date of the election. Once made, | ||||||
5 | the election may only be revoked upon approval of the | ||||||
6 | Director. The Department shall adopt rules setting | ||||||
7 | forth requirements for documenting the elections and | ||||||
8 | any resulting Illinois net loss and the standards to be | ||||||
9 | used by the Director in evaluating requests to revoke | ||||||
10 | elections. Public Act 96-932 is declaratory of | ||||||
11 | existing law; | ||||||
12 | (G) Subchapter S corporations. In the case of: (i) | ||||||
13 | a Subchapter S
corporation for which there is in effect | ||||||
14 | an election for the taxable year
under Section 1362 of | ||||||
15 | the Internal Revenue Code, the taxable income of such
| ||||||
16 | corporation determined in accordance with Section | ||||||
17 | 1363(b) of the Internal
Revenue Code, except that | ||||||
18 | taxable income shall take into
account those items | ||||||
19 | which are required by Section 1363(b)(1) of the
| ||||||
20 | Internal Revenue Code to be separately stated; and (ii) | ||||||
21 | a Subchapter
S corporation for which there is in effect | ||||||
22 | a federal election to opt out of
the provisions of the | ||||||
23 | Subchapter S Revision Act of 1982 and have applied
| ||||||
24 | instead the prior federal Subchapter S rules as in | ||||||
25 | effect on July 1, 1982,
the taxable income of such | ||||||
26 | corporation determined in accordance with the
federal |
| |||||||
| |||||||
1 | Subchapter S rules as in effect on July 1, 1982; and | ||||||
2 | (H) Partnerships. In the case of a partnership, | ||||||
3 | taxable income
determined in accordance with Section | ||||||
4 | 703 of the Internal Revenue Code,
except that taxable | ||||||
5 | income shall take into account those items which are
| ||||||
6 | required by Section 703(a)(1) to be separately stated | ||||||
7 | but which would be
taken into account by an individual | ||||||
8 | in calculating his taxable income. | ||||||
9 | (3) Recapture of business expenses on disposition of | ||||||
10 | asset or business. Notwithstanding any other law to the | ||||||
11 | contrary, if in prior years income from an asset or | ||||||
12 | business has been classified as business income and in a | ||||||
13 | later year is demonstrated to be non-business income, then | ||||||
14 | all expenses, without limitation, deducted in such later | ||||||
15 | year and in the 2 immediately preceding taxable years | ||||||
16 | related to that asset or business that generated the | ||||||
17 | non-business income shall be added back and recaptured as | ||||||
18 | business income in the year of the disposition of the asset | ||||||
19 | or business. Such amount shall be apportioned to Illinois | ||||||
20 | using the greater of the apportionment fraction computed | ||||||
21 | for the business under Section 304 of this Act for the | ||||||
22 | taxable year or the average of the apportionment fractions | ||||||
23 | computed for the business under Section 304 of this Act for | ||||||
24 | the taxable year and for the 2 immediately preceding | ||||||
25 | taxable years.
|
| |||||||
| |||||||
1 | (f) Valuation limitation amount. | ||||||
2 | (1) In general. The valuation limitation amount | ||||||
3 | referred to in
subsections (a) (2) (G), (c) (2) (I) and | ||||||
4 | (d)(2) (E) is an amount equal to: | ||||||
5 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
6 | amounts (to the
extent consisting of gain reportable | ||||||
7 | under the provisions of Section
1245 or 1250 of the | ||||||
8 | Internal Revenue Code) for all property in respect
of | ||||||
9 | which such gain was reported for the taxable year; plus | ||||||
10 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
11 | 1969 appreciation
amounts (to the extent consisting of | ||||||
12 | capital gain) for all property in
respect of which such | ||||||
13 | gain was reported for federal income tax purposes
for | ||||||
14 | the taxable year, or (ii) the net capital gain for the | ||||||
15 | taxable year,
reduced in either case by any amount of | ||||||
16 | such gain included in the amount
determined under | ||||||
17 | subsection (a) (2) (F) or (c) (2) (H). | ||||||
18 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
19 | (A) If the fair market value of property referred | ||||||
20 | to in paragraph
(1) was readily ascertainable on August | ||||||
21 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
22 | such property is the lesser of (i) the excess of
such | ||||||
23 | fair market value over the taxpayer's basis (for | ||||||
24 | determining gain)
for such property on that date | ||||||
25 | (determined under the Internal Revenue
Code as in | ||||||
26 | effect on that date), or (ii) the total gain realized |
| |||||||
| |||||||
1 | and
reportable for federal income tax purposes in | ||||||
2 | respect of the sale,
exchange or other disposition of | ||||||
3 | such property. | ||||||
4 | (B) If the fair market value of property referred | ||||||
5 | to in paragraph
(1) was not readily ascertainable on | ||||||
6 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
7 | amount for such property is that amount which bears
the | ||||||
8 | same ratio to the total gain reported in respect of the | ||||||
9 | property for
federal income tax purposes for the | ||||||
10 | taxable year, as the number of full
calendar months in | ||||||
11 | that part of the taxpayer's holding period for the
| ||||||
12 | property ending July 31, 1969 bears to the number of | ||||||
13 | full calendar
months in the taxpayer's entire holding | ||||||
14 | period for the
property. | ||||||
15 | (C) The Department shall prescribe such | ||||||
16 | regulations as may be
necessary to carry out the | ||||||
17 | purposes of this paragraph.
| ||||||
18 | (g) Double deductions. Unless specifically provided | ||||||
19 | otherwise, nothing
in this Section shall permit the same item | ||||||
20 | to be deducted more than once.
| ||||||
21 | (h) Legislative intention. Except as expressly provided by | ||||||
22 | this
Section there shall be no modifications or limitations on | ||||||
23 | the amounts
of income, gain, loss or deduction taken into | ||||||
24 | account in determining
gross income, adjusted gross income or |
| |||||||
| |||||||
1 | taxable income for federal income
tax purposes for the taxable | ||||||
2 | year, or in the amount of such items
entering into the | ||||||
3 | computation of base income and net income under this
Act for | ||||||
4 | such taxable year, whether in respect of property values as of
| ||||||
5 | August 1, 1969 or otherwise. | ||||||
6 | (Source: P.A. 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; 96-198, | ||||||
7 | eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. 8-14-09; | ||||||
8 | 96-835, eff. 12-16-09; 96-932, eff. 1-1-11; 96-935, eff. | ||||||
9 | 6-21-10; 96-1214, eff. 7-22-10; 97-333, eff. 8-12-11; 97-507, | ||||||
10 | eff. 8-23-11; 97-905, eff. 8-7-12.)
| ||||||
11 | Section 1010. The Compassionate Use of Medical Cannabis | ||||||
12 | Pilot Program Act is amended by changing Sections 10 and 115 as | ||||||
13 | follows:
| ||||||
14 | (410 ILCS 130/10) | ||||||
15 | (Section scheduled to be repealed on July 1, 2020)
| ||||||
16 | Sec. 10. Definitions. The following terms, as used in this | ||||||
17 | Act, shall have the meanings set forth in this Section:
| ||||||
18 | (a) "Adequate supply" means:
| ||||||
19 | (1) 2.5 ounces of usable cannabis during a period of 14 | ||||||
20 | days and that is derived solely from an intrastate source.
| ||||||
21 | (2) Subject to the rules of the Department of Public | ||||||
22 | Health, a patient may apply for a waiver where a physician | ||||||
23 | provides a substantial medical basis in a signed, written | ||||||
24 | statement asserting that, based on the patient's medical |
| |||||||
| |||||||
1 | history, in the physician's professional judgment, 2.5 | ||||||
2 | ounces is an insufficient adequate supply for a 14-day | ||||||
3 | period to properly alleviate the patient's debilitating | ||||||
4 | medical condition or symptoms associated with the | ||||||
5 | debilitating medical condition.
| ||||||
6 | (3) This subsection may not be construed to authorize | ||||||
7 | the possession of more than 2.5 ounces at any time without | ||||||
8 | authority from the Department of Public Health.
| ||||||
9 | (4) The pre-mixed weight of medical cannabis used in | ||||||
10 | making a cannabis infused product shall apply toward the | ||||||
11 | limit on the total amount of medical cannabis a registered | ||||||
12 | qualifying patient may possess at any one time. | ||||||
13 | (b) "Cannabis" has the meaning given that term in Section 3 | ||||||
14 | of the Cannabis Control Act.
| ||||||
15 | (c) "Cannabis plant monitoring system" means a system that | ||||||
16 | includes, but is not limited to, testing and data collection | ||||||
17 | established and maintained by the registered cultivation | ||||||
18 | center and available to the Department for the purposes of | ||||||
19 | documenting each cannabis plant and for monitoring plant | ||||||
20 | development throughout the life cycle of a cannabis plant | ||||||
21 | cultivated for the intended use by a qualifying patient from | ||||||
22 | seed planting to final packaging.
| ||||||
23 | (d) "Cardholder" means a qualifying patient or a designated | ||||||
24 | caregiver who has been issued and possesses a valid registry | ||||||
25 | identification card by the Department of Public Health.
| ||||||
26 | (e) "Cultivation center" means a facility operated by an |
| |||||||
| |||||||
1 | organization or business that is registered by the Department | ||||||
2 | of Agriculture to perform necessary activities to provide only | ||||||
3 | registered medical cannabis dispensing organizations with | ||||||
4 | usable medical cannabis.
| ||||||
5 | (f) "Cultivation center agent" means a principal officer, | ||||||
6 | board member, employee, or agent of a registered cultivation | ||||||
7 | center who is 21 years of age or older and has not been | ||||||
8 | convicted of an excluded offense.
| ||||||
9 | (g) "Cultivation center agent identification card" means a | ||||||
10 | document issued by the Department of Agriculture that | ||||||
11 | identifies a person as a cultivation center agent.
| ||||||
12 | (h) "Debilitating medical condition" means one or more of | ||||||
13 | the following: | ||||||
14 | (1) cancer, glaucoma, positive status for human | ||||||
15 | immunodeficiency virus, acquired immune deficiency | ||||||
16 | syndrome, hepatitis C, amyotrophic lateral sclerosis, | ||||||
17 | Crohn's disease, agitation of Alzheimer's disease, | ||||||
18 | cachexia/wasting syndrome, muscular dystrophy, severe | ||||||
19 | fibromyalgia, spinal cord disease, including but not | ||||||
20 | limited to arachnoiditis, Tarlov cysts, hydromyelia, | ||||||
21 | syringomyelia, Rheumatoid arthritis, fibrous dysplasia, | ||||||
22 | spinal cord injury, traumatic brain injury and | ||||||
23 | post-concussion syndrome, Multiple Sclerosis, | ||||||
24 | Arnold-Chiari malformation and Syringomyelia, | ||||||
25 | Spinocerebellar Ataxia (SCA), Parkinson's, Tourette's, | ||||||
26 | Myoclonus, Dystonia, Reflex Sympathetic Dystrophy, RSD |
| |||||||
| |||||||
1 | (Complex Regional Pain Syndromes Type I), Causalgia, CRPS | ||||||
2 | (Complex Regional Pain Syndromes Type II), | ||||||
3 | Neurofibromatosis, Chronic Inflammatory Demyelinating | ||||||
4 | Polyneuropathy, Sjogren's syndrome, Lupus, Interstitial | ||||||
5 | Cystitis, Myasthenia Gravis, Hydrocephalus, nail-patella | ||||||
6 | syndrome, residual limb pain, seizures (including those | ||||||
7 | characteristic of epilepsy), post-traumatic stress | ||||||
8 | disorder (PTSD), or the treatment of these conditions;
| ||||||
9 | (1.5) terminal illness with a diagnosis of 6 months or | ||||||
10 | less; if the terminal illness is not one of the qualifying | ||||||
11 | debilitating medical conditions, then the physician shall | ||||||
12 | on the certification form identify the cause of the | ||||||
13 | terminal illness; or | ||||||
14 | (2) any other debilitating medical condition or its | ||||||
15 | treatment that is added by the Department of Public Health | ||||||
16 | by rule as provided in Section 45. | ||||||
17 | (i) "Designated caregiver" means a person who: (1) is at | ||||||
18 | least 21 years of age; (2) has agreed to assist with a | ||||||
19 | patient's medical use of cannabis; (3) has not been convicted | ||||||
20 | of an excluded offense; and (4) assists no more than one | ||||||
21 | registered qualifying patient with his or her medical use of | ||||||
22 | cannabis.
| ||||||
23 | (j) "Dispensing organization agent identification card" | ||||||
24 | means a document issued by the Department of Financial and | ||||||
25 | Professional Regulation that identifies a person as a medical | ||||||
26 | cannabis dispensing organization agent.
|
| |||||||
| |||||||
1 | (k) "Enclosed, locked facility" means a room, greenhouse, | ||||||
2 | building, or other enclosed area equipped with locks or other | ||||||
3 | security devices that permit access only by a cultivation | ||||||
4 | center's agents or a dispensing organization's agent working | ||||||
5 | for the registered cultivation center or the registered | ||||||
6 | dispensing organization to cultivate, store, and distribute | ||||||
7 | cannabis for registered qualifying patients.
| ||||||
8 | (l) "Excluded offense" for cultivation center agents and | ||||||
9 | dispensing organizations means:
| ||||||
10 | (1) a violent crime defined in Section 3 of the Rights | ||||||
11 | of Crime Victims and Witnesses Act or a substantially | ||||||
12 | similar offense that was classified as a felony in the | ||||||
13 | jurisdiction where the person was convicted; or
| ||||||
14 | (2) a violation of a state or federal controlled | ||||||
15 | substance law, the Cannabis Control Act, or the | ||||||
16 | Methamphetamine Control and Community Protection Act that | ||||||
17 | was classified as a felony in the jurisdiction where the | ||||||
18 | person was convicted, except that the registering | ||||||
19 | Department may waive this restriction if the person | ||||||
20 | demonstrates to the registering Department's satisfaction | ||||||
21 | that his or her conviction was for the possession, | ||||||
22 | cultivation, transfer, or delivery of a reasonable amount | ||||||
23 | of cannabis intended for medical use. This exception does | ||||||
24 | not apply if the conviction was under state law and | ||||||
25 | involved a violation of an existing medical cannabis law.
| ||||||
26 | For purposes of this subsection, the Department of Public |
| |||||||
| |||||||
1 | Health shall determine by emergency rule within 30 days after | ||||||
2 | the effective date of this amendatory Act of the 99th General | ||||||
3 | Assembly what constitutes a "reasonable amount". | ||||||
4 | (l-5) "Excluded offense" for a qualifying patient or | ||||||
5 | designated caregiver means a violation of state or federal | ||||||
6 | controlled substance law, the Cannabis Control Act, or the | ||||||
7 | Methamphetamine and Community Protection Act that was | ||||||
8 | classified as a felony in the jurisdiction where the person was | ||||||
9 | convicted, except that the registering Department may waive | ||||||
10 | this restriction if the person demonstrates to the registering | ||||||
11 | Department's satisfaction that his or her conviction was for | ||||||
12 | the possession, cultivation, transfer, or delivery of a | ||||||
13 | reasonable amount of cannabis intended for medical use. This | ||||||
14 | exception does not apply if the conviction was under state law | ||||||
15 | and involved a violation of an existing medical cannabis law. | ||||||
16 | For purposes of this subsection, the Department of Public | ||||||
17 | Health shall determine by emergency rule within 30 days after | ||||||
18 | the effective date of this amendatory Act of the 99th General | ||||||
19 | Assembly what constitutes a "reasonable amount". | ||||||
20 | (m) "Medical cannabis cultivation center registration" | ||||||
21 | means a registration issued by the Department of Agriculture. | ||||||
22 | (n) "Medical cannabis container" means a sealed, | ||||||
23 | traceable, food compliant, tamper resistant, tamper evident | ||||||
24 | container, or package used for the purpose of containment of | ||||||
25 | medical cannabis from a cultivation center to a dispensing | ||||||
26 | organization.
|
| |||||||
| |||||||
1 | (o) "Medical cannabis dispensing organization", or | ||||||
2 | "dispensing organization", or "dispensary organization" means | ||||||
3 | a facility operated by an organization or business that is | ||||||
4 | registered by the Department of Financial and Professional | ||||||
5 | Regulation to acquire medical cannabis from a registered | ||||||
6 | cultivation center for the purpose of dispensing cannabis, | ||||||
7 | paraphernalia, or related supplies and educational materials | ||||||
8 | to registered qualifying patients.
"Medical cannabis | ||||||
9 | dispensing organization" includes a cannabis establishment | ||||||
10 | under the Cannabis Regulation and Taxation Act. | ||||||
11 | (p) "Medical cannabis dispensing organization agent" or | ||||||
12 | "dispensing organization agent" means a principal officer, | ||||||
13 | board member, employee, or agent of a registered medical | ||||||
14 | cannabis dispensing organization who is 21 years of age or | ||||||
15 | older and has not been convicted of an excluded offense.
| ||||||
16 | (q) "Medical cannabis infused product" means food, oils, | ||||||
17 | ointments, or other products containing usable cannabis that | ||||||
18 | are not smoked.
| ||||||
19 | (r) "Medical use" means the acquisition; administration; | ||||||
20 | delivery; possession; transfer; transportation; or use of | ||||||
21 | cannabis to treat or alleviate a registered qualifying | ||||||
22 | patient's debilitating medical condition or symptoms | ||||||
23 | associated with the patient's debilitating medical condition.
| ||||||
24 | (s) "Physician" means a doctor of medicine or doctor of | ||||||
25 | osteopathy licensed under the Medical Practice Act of 1987 to | ||||||
26 | practice medicine and who has a controlled substances license |
| |||||||
| |||||||
1 | under Article III of the Illinois Controlled Substances Act. It | ||||||
2 | does not include a licensed practitioner under any other Act | ||||||
3 | including but not limited to the Illinois Dental Practice Act.
| ||||||
4 | (t) "Qualifying patient" means a person who has been | ||||||
5 | diagnosed by a physician as having a debilitating medical | ||||||
6 | condition.
| ||||||
7 | (u) "Registered" means licensed, permitted, or otherwise | ||||||
8 | certified by the Department of Agriculture, Department of | ||||||
9 | Public Health, or Department of Financial and Professional | ||||||
10 | Regulation.
| ||||||
11 | (v) "Registry identification card" means a document issued | ||||||
12 | by the Department of Public Health that identifies a person as | ||||||
13 | a registered qualifying patient or registered designated | ||||||
14 | caregiver.
| ||||||
15 | (w) "Usable cannabis" means the seeds, leaves, buds, and | ||||||
16 | flowers of the cannabis plant and any mixture or preparation | ||||||
17 | thereof, but does not include the stalks, and roots of the | ||||||
18 | plant. It does not include the weight of any non-cannabis | ||||||
19 | ingredients combined with cannabis, such as ingredients added | ||||||
20 | to prepare a topical administration, food, or drink.
| ||||||
21 | (x) "Verification system" means a Web-based system | ||||||
22 | established and maintained by the Department of Public Health | ||||||
23 | that is available to the Department of Agriculture, the | ||||||
24 | Department of Financial and Professional Regulation, law | ||||||
25 | enforcement personnel, and registered medical cannabis | ||||||
26 | dispensing organization agents on a 24-hour basis for the |
| |||||||
| |||||||
1 | verification of registry
identification cards, the tracking of | ||||||
2 | delivery of medical cannabis to medical cannabis dispensing | ||||||
3 | organizations, and the tracking of the date of sale, amount, | ||||||
4 | and price of medical cannabis purchased by a registered | ||||||
5 | qualifying patient.
| ||||||
6 | (y) "Written certification" means a document dated and | ||||||
7 | signed by a physician, stating (1) that the qualifying patient | ||||||
8 | has a debilitating medical condition and specifying the | ||||||
9 | debilitating medical condition the qualifying patient has; and | ||||||
10 | (2) that the physician is treating or managing treatment of the | ||||||
11 | patient's debilitating medical condition. A written | ||||||
12 | certification shall be made only in the course of a bona fide | ||||||
13 | physician-patient relationship, after the physician has | ||||||
14 | completed an assessment of the qualifying patient's medical | ||||||
15 | history, reviewed relevant records related to the patient's | ||||||
16 | debilitating condition, and conducted a physical examination. | ||||||
17 | A veteran who has received treatment at a VA hospital shall | ||||||
18 | be deemed to have a bona fide physician-patient relationship | ||||||
19 | with a VA physician if the patient has been seen for his or her | ||||||
20 | debilitating medical condition at the VA Hospital in accordance | ||||||
21 | with VA Hospital protocols. | ||||||
22 | A bona fide physician-patient relationship under this | ||||||
23 | subsection is a privileged communication within the meaning of | ||||||
24 | Section 8-802 of the Code of Civil Procedure.
| ||||||
25 | (Source: P.A. 98-122, eff. 1-1-14; 98-775, eff. 1-1-15; 99-519, | ||||||
26 | eff. 6-30-16.)
|
| |||||||
| |||||||
1 | (410 ILCS 130/115) | ||||||
2 | (Section scheduled to be repealed on July 1, 2020)
| ||||||
3 | Sec. 115. Registration of dispensing organizations. | ||||||
4 | (a) The Department of Financial and Professional | ||||||
5 | Regulation may issue up to 60 dispensing organization | ||||||
6 | registrations for operation. The Department of Financial and | ||||||
7 | Professional Regulation may not issue less than the 60 | ||||||
8 | registrations if there are qualified applicants who have | ||||||
9 | applied with the Department of Financial and Professional | ||||||
10 | Regulation. The organizations shall be geographically | ||||||
11 | dispersed throughout the State to allow all registered | ||||||
12 | qualifying patients reasonable proximity and access to a | ||||||
13 | dispensing organization.
| ||||||
14 | (b) A dispensing organization may only operate if it has | ||||||
15 | been issued a registration from the Department of Financial and | ||||||
16 | Professional Regulation. The Department of Financial and | ||||||
17 | Professional Regulation shall adopt rules establishing the | ||||||
18 | procedures for applicants for dispensing organizations.
| ||||||
19 | (c) When applying for a dispensing organization | ||||||
20 | registration, the applicant shall submit, at a minimum, the | ||||||
21 | following in accordance with Department of Financial and | ||||||
22 | Professional Regulation rules:
| ||||||
23 | (1) a non-refundable application fee established by | ||||||
24 | rule;
| ||||||
25 | (2) the proposed legal name of the dispensing |
| |||||||
| |||||||
1 | organization;
| ||||||
2 | (3) the proposed physical address of the dispensing | ||||||
3 | organization;
| ||||||
4 | (4) the name, address, and date of birth of each | ||||||
5 | principal officer and board member of the dispensing | ||||||
6 | organization, provided that all those individuals shall be | ||||||
7 | at least 21 years of age;
| ||||||
8 | (5) information, in writing, regarding any instances | ||||||
9 | in which a business or not-for-profit that any of the | ||||||
10 | prospective board members managed or served on the board | ||||||
11 | was convicted, fined, censured, or had a registration | ||||||
12 | suspended or revoked in any administrative or judicial | ||||||
13 | proceeding;
| ||||||
14 | (6) proposed operating by-laws that include procedures | ||||||
15 | for the oversight of the medical cannabis dispensing | ||||||
16 | organization and procedures to ensure accurate record | ||||||
17 | keeping and security measures that are in accordance with | ||||||
18 | the rules applied by the Department of Financial and | ||||||
19 | Professional Regulation under this Act. The by-laws shall | ||||||
20 | include a description of the enclosed, locked facility | ||||||
21 | where medical cannabis will be stored by the dispensing | ||||||
22 | organization; and
| ||||||
23 | (7) signed statements from each dispensing | ||||||
24 | organization agent stating that they will not divert | ||||||
25 | medical cannabis.
| ||||||
26 | (d) The Department of Financial and Professional |
| |||||||
| |||||||
1 | Regulation shall conduct a background check of the prospective | ||||||
2 | dispensing organization agents in order to carry out this | ||||||
3 | Section. The Department of State Police shall charge a fee for | ||||||
4 | conducting the criminal history record check, which shall be | ||||||
5 | deposited in the State Police Services Fund and shall not | ||||||
6 | exceed the actual cost of the record check. Each person | ||||||
7 | applying as a dispensing organization agent shall submit a full | ||||||
8 | set of fingerprints to the Department of State Police for the | ||||||
9 | purpose of obtaining a State and federal criminal records | ||||||
10 | check. These fingerprints shall be checked against the | ||||||
11 | fingerprint records now and hereafter, to the extent allowed by | ||||||
12 | law, filed in the Department of State Police and Federal Bureau | ||||||
13 | of Investigation criminal history records databases. The | ||||||
14 | Department of State Police shall furnish, following positive | ||||||
15 | identification, all Illinois conviction information to the | ||||||
16 | Department of Financial and Professional Regulation.
| ||||||
17 | (e) A dispensing organization must pay a registration fee | ||||||
18 | set by the Department of Financial and Professional Regulation.
| ||||||
19 | (f) An application for a medical cannabis dispensing | ||||||
20 | organization registration must be denied if any of the | ||||||
21 | following conditions are met:
| ||||||
22 | (1) the applicant failed to submit the materials | ||||||
23 | required by this Section, including if the applicant's | ||||||
24 | plans do not satisfy the security, oversight, or | ||||||
25 | recordkeeping rules issued by the Department of Financial | ||||||
26 | and Professional Regulation;
|
| |||||||
| |||||||
1 | (2) the applicant would not be in compliance with local | ||||||
2 | zoning rules issued in accordance with Section 140;
| ||||||
3 | (3) the applicant does not meet the requirements of | ||||||
4 | Section 130;
| ||||||
5 | (4) one or more of the prospective principal officers | ||||||
6 | or board members has been convicted of an excluded offense;
| ||||||
7 | (5) one or more of the prospective principal officers | ||||||
8 | or board members has served as a principal officer or board | ||||||
9 | member for a registered medical cannabis dispensing | ||||||
10 | organization that has had its registration revoked;
| ||||||
11 | (6) one or more of the principal officers or board | ||||||
12 | members is under 21 years of age; and
| ||||||
13 | (7) one or more of the principal officers or board | ||||||
14 | members is a registered qualified patient or a registered | ||||||
15 | caregiver.
| ||||||
16 | (g) On and after the effective date of this amendatory Act | ||||||
17 | of 100th General Assembly, a medical cannabis dispensing | ||||||
18 | organization may
receive an adult use retailer registration and | ||||||
19 | operate for up to one
year before the issuance of a | ||||||
20 | registration to a new cannabis establishment under the Cannabis | ||||||
21 | Regulation and Taxation Act. | ||||||
22 | (Source: P.A. 98-122, eff. 1-1-14; 98-1172, eff. 1-12-15 .)
| ||||||
23 | Section 1015. The Illinois Noxious Weed Law is amended by | ||||||
24 | changing Section 2 as follows:
|
| |||||||
| |||||||
1 | (505 ILCS 100/2) (from Ch. 5, par. 952)
| ||||||
2 | Sec. 2. As used in this Act: | ||||||
3 | (1) "Person" means any individual, partnership,
firm, | ||||||
4 | corporation, company, society, association, the State or any
| ||||||
5 | department, agency, or subdivision thereof, or any other | ||||||
6 | entity.
| ||||||
7 | (2) "Control", "controlled" or "controlling" includes | ||||||
8 | being in
charge of or being in possession, whether as owner, | ||||||
9 | lessee, renter, or
tenant, under statutory authority, or | ||||||
10 | otherwise.
| ||||||
11 | (3) "Director" means the Director of the Department of | ||||||
12 | Agriculture
of the State of Illinois, or his or her duly | ||||||
13 | appointed representative.
| ||||||
14 | (4) "Department" means the Department of Agriculture of the | ||||||
15 | State of
Illinois.
| ||||||
16 | (5) "Noxious weed" means any plant which is determined by | ||||||
17 | the
Director, the Dean of the College of Agricultural, Consumer | ||||||
18 | and Environmental Sciences of the University of
Illinois and | ||||||
19 | the Director of the Agricultural Experiment Station at the
| ||||||
20 | University of Illinois, to be injurious to public health, | ||||||
21 | crops,
livestock, land or other property. "Noxious weed" does | ||||||
22 | not include industrial hemp as defined and authorized under the | ||||||
23 | Industrial Hemp Law.
| ||||||
24 | (6) "Control Authority" means the governing body of each | ||||||
25 | county, and
shall represent all rural areas and cities, | ||||||
26 | villages and townships
within the county boundaries.
|
| |||||||
| |||||||
1 | (7) "Applicable fund" means the fund current at the time | ||||||
2 | the work is
performed or the money is received.
| ||||||
3 | (Source: P.A. 99-539, eff. 7-8-16.)
| ||||||
4 | Section 1020. The Illinois Vehicle Code is amended by | ||||||
5 | changing Section 11-502 as follows:
| ||||||
6 | (625 ILCS 5/11-502) (from Ch. 95 1/2, par. 11-502)
| ||||||
7 | Sec. 11-502. Transportation or possession of alcoholic | ||||||
8 | liquor in
a motor vehicle ; smoking cannabis in a motor vehicle | ||||||
9 | prohibited; exception . | ||||||
10 | (a) Except as provided in paragraph (c), no driver may
| ||||||
11 | transport, carry, possess or have any alcoholic
liquor within | ||||||
12 | the passenger area of any motor vehicle upon a highway in
this | ||||||
13 | State except in the original container and with the seal | ||||||
14 | unbroken.
| ||||||
15 | (b) Except as provided in paragraph (c), no passenger may | ||||||
16 | carry, possess
or have any alcoholic liquor within any | ||||||
17 | passenger area of any motor vehicle
upon a highway in this | ||||||
18 | State except in the original container and with the
seal | ||||||
19 | unbroken. Except as provided in paragraph (c), no person may | ||||||
20 | smoke cannabis in a motor vehicle upon a highway in
this State.
| ||||||
21 | (c) This Section shall not apply to the passengers in a | ||||||
22 | limousine when
it is being used for purposes for which a | ||||||
23 | limousine is ordinarily used,
the passengers on a chartered bus | ||||||
24 | when it is being used for purposes for
which chartered buses |
| |||||||
| |||||||
1 | are ordinarily used or on a motor home or mini motor
home as | ||||||
2 | defined in Section 1-145.01 of this Code. However, the driver | ||||||
3 | of
any such vehicle is prohibited from consuming or having any | ||||||
4 | alcoholic
liquor in or about the driver's area. Any evidence of | ||||||
5 | alcoholic consumption
by the driver shall be prima facie | ||||||
6 | evidence of such driver's failure to
obey this Section. For the | ||||||
7 | purposes of this Section, a limousine is a motor
vehicle of the | ||||||
8 | first division with the passenger compartment enclosed by a
| ||||||
9 | partition or dividing window used in the for-hire | ||||||
10 | transportation of
passengers and operated by an individual in | ||||||
11 | possession of a valid Illinois
driver's license of the | ||||||
12 | appropriate classification pursuant to Section 6-104
of this | ||||||
13 | Code. This Section does not apply to the passengers in a | ||||||
14 | limousine when
it is being used for purposes for which a | ||||||
15 | limousine is ordinarily used,
the passengers on a chartered bus | ||||||
16 | when it is being used for purposes for
which chartered buses | ||||||
17 | are ordinarily used, or on a motor home or mini motor
home as | ||||||
18 | defined in Section 1-145.01 of this Code. However, the driver | ||||||
19 | of
any of these vehicles is prohibited from smoking cannabis in | ||||||
20 | or about the driver's area and provided further that there is a | ||||||
21 | divider between the driver and passengers of the motor vehicle.
| ||||||
22 | (d) (Blank).
| ||||||
23 | (e) Any driver who is convicted of violating subsection (a) | ||||||
24 | of this
Section for a second or subsequent time within one year | ||||||
25 | of a similar
conviction shall be subject to suspension of | ||||||
26 | driving privileges as
provided, in paragraph 23 of subsection |
| |||||||
| |||||||
1 | (a) of Section 6-206 of this Code.
| ||||||
2 | (f) Any driver, who is less than 21 years of age at the | ||||||
3 | date of the
offense and who is convicted of violating | ||||||
4 | subsection (a) of this Section or a
similar provision of a | ||||||
5 | local ordinance, shall be subject to the loss of driving
| ||||||
6 | privileges as provided in paragraph 13 of subsection (a) of | ||||||
7 | Section 6-205 of
this Code and paragraph 33 of subsection (a) | ||||||
8 | of Section 6-206 of this Code.
| ||||||
9 | (Source: P.A. 94-1047, eff. 1-1-07; 95-847, eff. 8-15-08.)
| ||||||
10 | Section 1025. The Cannabis Control Act is amended by | ||||||
11 | changing Sections 3, 4, 8, 10, and 12 and adding Sections 3.5, | ||||||
12 | 4.1, and 8.1 as follows:
| ||||||
13 | (720 ILCS 550/3) (from Ch. 56 1/2, par. 703)
| ||||||
14 | Sec. 3. As used in this Act, unless the context otherwise | ||||||
15 | requires:
| ||||||
16 | (a) "Cannabis" includes marihuana, hashish and other | ||||||
17 | substances which
are identified as including any parts of the | ||||||
18 | plant Cannabis Sativa, whether
growing or not; the seeds | ||||||
19 | thereof, the resin extracted from any part of
such plant; and | ||||||
20 | any compound, manufacture, salt, derivative, mixture, or
| ||||||
21 | preparation of such plant, its seeds, or resin, including | ||||||
22 | tetrahydrocannabinol
(THC) and all other cannabinol | ||||||
23 | derivatives, including its naturally occurring
or | ||||||
24 | synthetically produced ingredients, whether produced directly |
| |||||||
| |||||||
1 | or indirectly
by extraction, or independently by means of | ||||||
2 | chemical synthesis or by a
combination
of extraction and | ||||||
3 | chemical synthesis; but shall not include the mature stalks
of | ||||||
4 | such plant, fiber produced from such stalks, oil or cake made | ||||||
5 | from the
seeds of such plant, any other compound, manufacture, | ||||||
6 | salt, derivative,
mixture, or preparation of such mature stalks | ||||||
7 | (except the resin extracted
therefrom), fiber, oil or cake, or | ||||||
8 | the sterilized seed of such plant which
is incapable of | ||||||
9 | germination. "Cannabis" does not include industrial hemp as | ||||||
10 | defined and authorized under the Industrial Hemp Law.
| ||||||
11 | (b) "Casual delivery" means the delivery of not more than | ||||||
12 | 10 grams of
any substance containing cannabis without | ||||||
13 | consideration.
| ||||||
14 | (c) "Department" means the Illinois Department of Human | ||||||
15 | Services (as
successor to the Department of Alcoholism and | ||||||
16 | Substance Abuse) or its successor agency.
| ||||||
17 | (d) "Deliver" or "delivery" means the actual, constructive | ||||||
18 | or attempted
transfer of possession of cannabis, with or | ||||||
19 | without consideration, whether
or not there is an agency | ||||||
20 | relationship.
| ||||||
21 | (e) "Department of State Police" means the Department
of | ||||||
22 | State Police of the State of Illinois or its successor agency.
| ||||||
23 | (f) "Director" means the Director of the Department of | ||||||
24 | State Police
or his designated agent.
| ||||||
25 | (g) "Local authorities" means a duly organized State, | ||||||
26 | county, or municipal
peace unit or police force.
|
| |||||||
| |||||||
1 | (h) "Manufacture" means the production, preparation, | ||||||
2 | propagation,
compounding,
conversion or processing of | ||||||
3 | cannabis, either directly or indirectly, by
extraction from | ||||||
4 | substances of natural origin, or independently by means
of | ||||||
5 | chemical synthesis, or by a combination of extraction and | ||||||
6 | chemical
synthesis,
and includes any packaging or repackaging | ||||||
7 | of cannabis or labeling of its
container, except that this term | ||||||
8 | does not include the preparation, compounding,
packaging, or | ||||||
9 | labeling of cannabis as an incident to lawful research, | ||||||
10 | teaching,
or chemical analysis and not for sale.
| ||||||
11 | (i) "Person" means any individual, corporation, government | ||||||
12 | or governmental
subdivision or agency, business trust, estate, | ||||||
13 | trust, partnership or association,
or any other entity.
| ||||||
14 | (j) "Produce" or "production" means planting, cultivating, | ||||||
15 | tending or harvesting.
| ||||||
16 | (k) "State" includes the State of Illinois and any state, | ||||||
17 | district, commonwealth,
territory, insular possession thereof, | ||||||
18 | and any area subject to the legal
authority of the United | ||||||
19 | States of America.
| ||||||
20 | (l) "Subsequent offense" means an offense under this Act, | ||||||
21 | the offender
of which, prior to his conviction of the offense, | ||||||
22 | has at any time been convicted
under this Act or under any laws | ||||||
23 | of the United States or of any state relating
to cannabis, or | ||||||
24 | any controlled substance as defined in the Illinois Controlled
| ||||||
25 | Substances Act.
| ||||||
26 | (Source: P.A. 89-507, eff. 7-1-97 .)
|
| |||||||
| |||||||
1 | (720 ILCS 550/3.5 new) | ||||||
2 | Sec. 3.5. Applicability of Act. The possession, | ||||||
3 | cultivation, harvest, display, distribution, packaging, | ||||||
4 | processing, purchase, transportation, transfer, delivery, | ||||||
5 | sale, storage, and consumption of cannabis as provided for in | ||||||
6 | the Cannabis Regulation and Taxation Act is not a violation of | ||||||
7 | this Act.
| ||||||
8 | (720 ILCS 550/4) (from Ch. 56 1/2, par. 704)
| ||||||
9 | Sec. 4. It is unlawful for any person knowingly to possess | ||||||
10 | more than 28 grams of cannabis. Any person
regardless of age | ||||||
11 | who violates this Section section with respect to:
| ||||||
12 | (a) (blank); not more than 10 grams of any substance | ||||||
13 | containing cannabis is
guilty of a civil law violation | ||||||
14 | punishable by a minimum fine of $100 and a maximum fine of | ||||||
15 | $200. The proceeds of the fine shall be payable to the | ||||||
16 | clerk of the circuit court. Within 30 days after the | ||||||
17 | deposit of the fine, the clerk shall distribute the | ||||||
18 | proceeds of the fine as follows: | ||||||
19 | (1) $10 of the fine to the circuit clerk and $10 of | ||||||
20 | the fine to the law enforcement agency that issued the | ||||||
21 | citation; the proceeds of each $10 fine distributed to | ||||||
22 | the circuit clerk and each $10 fine distributed to the | ||||||
23 | law enforcement agency that issued the citation for the | ||||||
24 | violation shall be used to defer the cost of automatic |
| |||||||
| |||||||
1 | expungements under paragraph (2.5) of subsection (a) | ||||||
2 | of Section 5.2 of the Criminal Identification Act; | ||||||
3 | (2) $15 to the county to fund drug addiction | ||||||
4 | services; | ||||||
5 | (3) $10 to the Office of the State's Attorneys | ||||||
6 | Appellate Prosecutor for use in training programs; | ||||||
7 | (4) $10 to the State's Attorney; and | ||||||
8 | (5) any remainder of the fine to the law | ||||||
9 | enforcement agency that issued the citation for the | ||||||
10 | violation. | ||||||
11 | With respect to funds designated for the Department of | ||||||
12 | State Police, the moneys shall be remitted by the circuit | ||||||
13 | court clerk to the Department of State Police within one | ||||||
14 | month after receipt for deposit into the State Police | ||||||
15 | Operations Assistance Fund. With respect to funds | ||||||
16 | designated for the Department of Natural Resources, the | ||||||
17 | Department of Natural Resources shall deposit the moneys | ||||||
18 | into the Conservation Police Operations Assistance Fund;
| ||||||
19 | (b) more than 28 10 grams if a resident of this State | ||||||
20 | or more than 14 grams of
cannabis, if a non-resident of | ||||||
21 | this State but not more than 30 grams of any substance
| ||||||
22 | containing cannabis is guilty of a Class B misdemeanor;
| ||||||
23 | (b-1) more than 2 grams of concentrated cannabis but | ||||||
24 | not more than 30 grams of concentrated cannabis, if a | ||||||
25 | non-resident of this State, is guilty of a Class B | ||||||
26 | misdemeanor; |
| |||||||
| |||||||
1 | (c) more than 30 grams but not more than 100 grams of | ||||||
2 | any substance
containing cannabis is guilty of a Class A | ||||||
3 | misdemeanor; provided, that if
any offense under this | ||||||
4 | subsection (c) is a subsequent offense, the offender
shall | ||||||
5 | be guilty of a Class 4 felony;
| ||||||
6 | (d) more than 100 grams but not more than 500 grams of | ||||||
7 | any substance
containing cannabis is guilty of a Class 4 | ||||||
8 | felony; provided that if any
offense under this subsection | ||||||
9 | (d) is a subsequent offense, the offender
shall be guilty | ||||||
10 | of a Class 3 felony;
| ||||||
11 | (e) more than 500 grams but not more than 2,000 grams | ||||||
12 | of any substance
containing cannabis is guilty
of a Class 3 | ||||||
13 | felony;
| ||||||
14 | (f) more than 2,000 grams but not more than 5,000 grams | ||||||
15 | of any
substance containing cannabis is guilty of a Class 2 | ||||||
16 | felony;
| ||||||
17 | (g) more than 5,000 grams of any substance containing | ||||||
18 | cannabis is guilty
of a Class 1 felony.
| ||||||
19 | (Source: P.A. 99-697, eff. 7-29-16.)
| ||||||
20 | (720 ILCS 550/4.1 new) | ||||||
21 | Sec. 4.1. Persons under 21 years of age. A person under 21 | ||||||
22 | years of age in possession of 28 grams or less of cannabis is | ||||||
23 | guilty of a civil law violation
charged by a Uniform Cannabis | ||||||
24 | Ticket and punishable by forfeiture of the cannabis and | ||||||
25 | completion not to exceed 4 hours of instruction in a drug |
| |||||||
| |||||||
1 | awareness program. The parents or legal guardian of any | ||||||
2 | offender under the age of 18 shall be notified of the offense | ||||||
3 | and of available drug awareness programs, which shall be | ||||||
4 | established by the Department of Public Health. The Department | ||||||
5 | of Public Health shall set fees for the program sufficient to | ||||||
6 | cover all costs of administering the program, which shall not | ||||||
7 | exceed $300. If an offender fails within one year of the notice | ||||||
8 | of the offense and available programs to complete a drug | ||||||
9 | awareness program, the person is guilty of a regulatory offense | ||||||
10 | and shall pay a fine not to exceed $300 or shall complete up to | ||||||
11 | 40 hours of community service, or both.
| ||||||
12 | (720 ILCS 550/8) (from Ch. 56 1/2, par. 708)
| ||||||
13 | Sec. 8. It is unlawful for any person knowingly to produce | ||||||
14 | the
cannabis sativa plant or to possess such plants unless | ||||||
15 | production or possession
has been authorized under pursuant to | ||||||
16 | the provisions of Section 11 or 15.2 of the Act or under the | ||||||
17 | Cannabis Regulation and Taxation Act .
Any person who violates | ||||||
18 | this Section with respect to production or possession of:
| ||||||
19 | (a) (Blank). Not more than 5 plants is guilty of a Class A | ||||||
20 | misdemeanor.
| ||||||
21 | (b) More than 5, but not more than 20 plants, is guilty
of | ||||||
22 | a Class 4 felony.
| ||||||
23 | (c) More than 20, but not more than 50 plants, is
guilty of | ||||||
24 | a Class 3 felony.
| ||||||
25 | (d) More than 50, but not more than 200 plants, is guilty |
| |||||||
| |||||||
1 | of a Class 2 felony for which
a fine not to exceed $100,000 may | ||||||
2 | be imposed and for which liability for
the cost of conducting | ||||||
3 | the investigation and eradicating such plants may be
assessed. | ||||||
4 | Compensation for expenses incurred in the enforcement of this
| ||||||
5 | provision shall be transmitted to and deposited in the | ||||||
6 | treasurer's office
at the level of government represented by | ||||||
7 | the Illinois law enforcement
agency whose officers or employees | ||||||
8 | conducted the investigation or caused
the arrest or arrests | ||||||
9 | leading to the prosecution, to be subsequently made
available | ||||||
10 | to that law enforcement agency as expendable receipts for use | ||||||
11 | in
the enforcement of laws regulating controlled substances and | ||||||
12 | cannabis. If
such seizure was made by a combination of law | ||||||
13 | enforcement personnel
representing different levels of | ||||||
14 | government, the court levying the
assessment shall determine | ||||||
15 | the allocation of such assessment. The proceeds
of assessment | ||||||
16 | awarded to the State treasury shall be deposited in a special
| ||||||
17 | fund known as the Drug Traffic Prevention Fund. | ||||||
18 | (e) More than 200 plants is guilty of a Class 1 felony for | ||||||
19 | which
a fine not to exceed $100,000 may be imposed and for | ||||||
20 | which liability for
the cost of conducting the investigation | ||||||
21 | and eradicating such plants may be
assessed. Compensation for | ||||||
22 | expenses incurred in the enforcement of this
provision shall be | ||||||
23 | transmitted to and deposited in the treasurer's office
at the | ||||||
24 | level of government represented by the Illinois law enforcement
| ||||||
25 | agency whose officers or employees conducted the investigation | ||||||
26 | or caused
the arrest or arrests leading to the prosecution, to |
| |||||||
| |||||||
1 | be subsequently made
available to that law enforcement agency | ||||||
2 | as expendable receipts for use in
the enforcement of laws | ||||||
3 | regulating controlled substances and cannabis. If
such seizure | ||||||
4 | was made by a combination of law enforcement personnel
| ||||||
5 | representing different levels of government, the court levying | ||||||
6 | the
assessment shall determine the allocation of such | ||||||
7 | assessment. The proceeds
of assessment awarded to the State | ||||||
8 | treasury shall be deposited in a special
fund known as the Drug | ||||||
9 | Traffic Prevention Fund.
| ||||||
10 | (Source: P.A. 98-1072, eff. 1-1-15 .)
| ||||||
11 | (720 ILCS 550/8.1 new) | ||||||
12 | Sec. 8.1. Persons under 21 years of age; production or | ||||||
13 | possession of cannabis sativa plant. A person under 21 years of | ||||||
14 | age who produces or possesses not more than 5 cannabis sativa | ||||||
15 | plants is guilty of a civil law violation
charged by a Uniform | ||||||
16 | Cannabis Ticket and punishable by forfeiture of the cannabis | ||||||
17 | and completion not to exceed 4 hours of instruction in a drug | ||||||
18 | awareness program. The parents or legal guardian of any | ||||||
19 | offender under the age of 18 shall be notified of the offense | ||||||
20 | and of available drug awareness programs, which shall be | ||||||
21 | established by the Department of Public Health. The Department | ||||||
22 | of Public Health shall set fees for the program sufficient to | ||||||
23 | cover all costs of administering the program, which shall not | ||||||
24 | exceed $300. If an offender fails within one year of the notice | ||||||
25 | of the offense and available programs to complete a drug |
| |||||||
| |||||||
1 | awareness program, the person is guilty of a regulatory offense | ||||||
2 | and shall pay a fine not to exceed $300 or shall complete up to | ||||||
3 | 40 hours of community service, or both.
| ||||||
4 | (720 ILCS 550/10) (from Ch. 56 1/2, par. 710)
| ||||||
5 | Sec. 10. (a)
Whenever any person who has not previously | ||||||
6 | been convicted of, or placed
on probation or court supervision | ||||||
7 | for, any offense under this Act or any
law of the United States | ||||||
8 | or of any State relating to cannabis, or controlled
substances | ||||||
9 | as defined in the Illinois Controlled Substances Act, pleads
| ||||||
10 | guilty to or is found guilty of violating Sections 4(a), 4(b), | ||||||
11 | 4(c),
5(a), 5(b), 5(c) or 8 of this Act, the court may, without | ||||||
12 | entering a
judgment and with the consent of such person, | ||||||
13 | sentence him to probation.
| ||||||
14 | (b) When a person is placed on probation, the court shall | ||||||
15 | enter an order
specifying a period of probation of 24 months, | ||||||
16 | and shall defer further
proceedings in
the case until the | ||||||
17 | conclusion of the period or until the filing of a petition
| ||||||
18 | alleging violation of a term or condition of probation.
| ||||||
19 | (c) The conditions of probation shall be that the person: | ||||||
20 | (1) not violate
any criminal statute of any jurisdiction; (2) | ||||||
21 | refrain from possession of a
firearm
or other dangerous weapon; | ||||||
22 | (3) submit to periodic drug testing at a time and in
a manner | ||||||
23 | as ordered by the court, but no less than 3 times during the | ||||||
24 | period of
the probation, with the cost of the testing to be | ||||||
25 | paid by the probationer; and
(4) perform no less than 30 hours |
| |||||||
| |||||||
1 | of community service, provided community
service is available | ||||||
2 | in the jurisdiction and is funded and approved by the
county | ||||||
3 | board.
| ||||||
4 | (d) The court may, in addition to other conditions, require
| ||||||
5 | that the person:
| ||||||
6 | (1) make a report to and appear in person before or | ||||||
7 | participate with the
court or such courts, person, or | ||||||
8 | social service agency as directed by the
court in the order | ||||||
9 | of probation;
| ||||||
10 | (2) pay a fine and costs;
| ||||||
11 | (3) work or pursue a course of study or vocational | ||||||
12 | training;
| ||||||
13 | (4) undergo medical or psychiatric treatment; or | ||||||
14 | treatment for drug
addiction or alcoholism;
| ||||||
15 | (5) attend or reside in a facility established for the | ||||||
16 | instruction or
residence of defendants on probation;
| ||||||
17 | (6) support his dependents;
| ||||||
18 | (7) refrain from possessing a firearm or other | ||||||
19 | dangerous weapon;
| ||||||
20 | (7-5) refrain from having in his or her body the | ||||||
21 | presence of any illicit
drug prohibited by the Cannabis | ||||||
22 | Control Act, the Illinois Controlled
Substances Act, or the | ||||||
23 | Methamphetamine Control and Community Protection Act, | ||||||
24 | unless prescribed by a physician, and submit samples of
his | ||||||
25 | or her blood or urine or both for tests to determine the | ||||||
26 | presence of any
illicit drug;
|
| |||||||
| |||||||
1 | (8) and in addition, if a minor:
| ||||||
2 | (i) reside with his parents or in a foster home;
| ||||||
3 | (ii) attend school;
| ||||||
4 | (iii) attend a non-residential program for youth;
| ||||||
5 | (iv) contribute to his own support at home or in a | ||||||
6 | foster home.
| ||||||
7 | (e) Upon violation of a term or condition of probation, the
| ||||||
8 | court
may enter a judgment on its original finding of guilt and | ||||||
9 | proceed as otherwise
provided.
| ||||||
10 | (f) Upon fulfillment of the terms and
conditions of | ||||||
11 | probation, the court shall discharge such person and dismiss
| ||||||
12 | the proceedings against him.
| ||||||
13 | (g) A disposition of probation is considered to be a | ||||||
14 | conviction
for the purposes of imposing the conditions of | ||||||
15 | probation and for appeal,
however, discharge and dismissal | ||||||
16 | under this Section is not a conviction for
purposes of | ||||||
17 | disqualification or disabilities imposed by law upon | ||||||
18 | conviction of
a crime (including the additional penalty imposed | ||||||
19 | for subsequent offenses under
Section 4(c), 4(d), 5(c) or 5(d) | ||||||
20 | of this Act).
| ||||||
21 | (h) Discharge and dismissal under this Section,
Section 410 | ||||||
22 | of the Illinois Controlled Substances Act, Section 70 of the | ||||||
23 | Methamphetamine Control and Community Protection Act, Section | ||||||
24 | 5-6-3.3 or 5-6-3.4 of the Unified Code of Corrections, or | ||||||
25 | subsection (c) of Section 11-14 of the Criminal Code of 1961 or | ||||||
26 | the Criminal Code of 2012 may occur only once
with respect to |
| |||||||
| |||||||
1 | any person.
| ||||||
2 | (i) If a person is convicted of an offense under this Act, | ||||||
3 | the Illinois
Controlled Substances Act, or the Methamphetamine | ||||||
4 | Control and Community Protection Act within 5 years
subsequent | ||||||
5 | to a discharge and dismissal under this Section, the discharge | ||||||
6 | and
dismissal under this Section shall be admissible in the | ||||||
7 | sentencing proceeding
for that conviction
as a factor in | ||||||
8 | aggravation.
| ||||||
9 | (j) Notwithstanding subsection (a), before a person is | ||||||
10 | sentenced to probation under this Section, the court may refer | ||||||
11 | the person to the drug court established in that judicial | ||||||
12 | circuit pursuant to Section 15 of the Drug Court Treatment Act. | ||||||
13 | The drug court team shall evaluate the person's likelihood of | ||||||
14 | successfully completing a sentence of probation under this | ||||||
15 | Section and shall report the results of its evaluation to the | ||||||
16 | court. If the drug court team finds that the person suffers | ||||||
17 | from a substance abuse problem that makes him or her | ||||||
18 | substantially unlikely to successfully complete a sentence of | ||||||
19 | probation under this Section, then the drug court shall set | ||||||
20 | forth its findings in the form of a written order, and the | ||||||
21 | person shall not be sentenced to probation under this Section, | ||||||
22 | but may be considered for the drug court program. | ||||||
23 | (Source: P.A. 98-164, eff. 1-1-14; 99-480, eff. 9-9-15.)
| ||||||
24 | (720 ILCS 550/12) (from Ch. 56 1/2, par. 712)
| ||||||
25 | Sec. 12. (a) The following are subject to forfeiture:
|
| |||||||
| |||||||
1 | (1) all substances containing cannabis which have been | ||||||
2 | produced,
manufactured, delivered, or possessed in | ||||||
3 | violation of this Act;
| ||||||
4 | (2) all raw materials, products and equipment of any | ||||||
5 | kind which are
produced, delivered, or possessed in | ||||||
6 | connection with any substance
containing cannabis in | ||||||
7 | violation of this Act;
| ||||||
8 | (3) all conveyances, including aircraft, vehicles or | ||||||
9 | vessels, which
are used, or intended for use, to transport, | ||||||
10 | or in any manner to
facilitate the transportation, sale, | ||||||
11 | receipt, possession, or
concealment of property described | ||||||
12 | in paragraph (1) or (2) that constitutes
a felony violation | ||||||
13 | of the Act, but:
| ||||||
14 | (i) no conveyance used by any person as a common | ||||||
15 | carrier in the
transaction of business as a common | ||||||
16 | carrier is subject to forfeiture
under this Section | ||||||
17 | unless it appears that the owner or other person in
| ||||||
18 | charge of the conveyance is a consenting party or privy | ||||||
19 | to a violation
of this Act;
| ||||||
20 | (ii) no conveyance is subject to forfeiture under | ||||||
21 | this Section by
reason of any act or omission which the | ||||||
22 | owner proves to have been
committed or omitted without | ||||||
23 | his knowledge or consent;
| ||||||
24 | (iii) a forfeiture of a conveyance encumbered by a | ||||||
25 | bona fide
security interest is subject to the interest | ||||||
26 | of the secured party if he
neither had knowledge of nor |
| |||||||
| |||||||
1 | consented to the act or omission;
| ||||||
2 | (4) all money, things of value, books, records, and | ||||||
3 | research
products and materials including formulas, | ||||||
4 | microfilm, tapes, and data
which are used, or intended for | ||||||
5 | use in a felony violation of this Act;
| ||||||
6 | (5) everything of value furnished or intended to be | ||||||
7 | furnished by any
person in exchange for a substance in | ||||||
8 | violation of this Act, all proceeds
traceable to such an | ||||||
9 | exchange, and all moneys, negotiable instruments, and
| ||||||
10 | securities used, or intended to be used, to commit or in | ||||||
11 | any manner to
facilitate any felony violation of this Act;
| ||||||
12 | (6) all real property, including any right, title, and | ||||||
13 | interest including, but not limited to, any leasehold | ||||||
14 | interest or the beneficial interest to a land trust, in the | ||||||
15 | whole of any lot or tract of land and any appurtenances or | ||||||
16 | improvements, that is used or intended to be used to | ||||||
17 | facilitate the manufacture, distribution, sale, receipt, | ||||||
18 | or concealment of property described in paragraph (1) or | ||||||
19 | (2) of this subsection (a) that constitutes a felony | ||||||
20 | violation of more than 2,000 grams of a substance | ||||||
21 | containing cannabis or that is the proceeds of any felony | ||||||
22 | violation of this Act. | ||||||
23 | (b) Property subject to forfeiture under this Act may be | ||||||
24 | seized by
the Director or any peace officer upon process or | ||||||
25 | seizure warrant issued by
any court having jurisdiction over | ||||||
26 | the property. Seizure by the Director
or any peace officer |
| |||||||
| |||||||
1 | without process may be made:
| ||||||
2 | (1) if the property subject to seizure has been the | ||||||
3 | subject of a
prior judgment in favor of the State in a | ||||||
4 | criminal proceeding or
in an injunction or forfeiture | ||||||
5 | proceeding based upon this Act or the Drug
Asset Forfeiture | ||||||
6 | Procedure Act;
| ||||||
7 | (2) if there is probable cause to believe that the | ||||||
8 | property is
directly or indirectly dangerous to health or | ||||||
9 | safety;
| ||||||
10 | (3) if there is probable cause to believe that the | ||||||
11 | property is subject
to forfeiture under this Act and the | ||||||
12 | property is seized under
circumstances in which a | ||||||
13 | warrantless seizure or arrest would be reasonable; or
| ||||||
14 | (4) in accordance with the Code of Criminal Procedure | ||||||
15 | of 1963.
| ||||||
16 | (c) In the event of seizure pursuant to subsection (b), | ||||||
17 | notice shall be given forthwith to all known interest holders | ||||||
18 | that forfeiture
proceedings, including a preliminary review, | ||||||
19 | shall be instituted in accordance with the
Drug Asset | ||||||
20 | Forfeiture Procedure Act and such proceedings shall thereafter | ||||||
21 | be instituted in accordance with that Act. Upon a showing of | ||||||
22 | good cause, the notice required for a preliminary review under | ||||||
23 | this Section may be postponed.
| ||||||
24 | (c-1) In the event the State's Attorney is of the opinion | ||||||
25 | that real property is subject to forfeiture under this Act, | ||||||
26 | forfeiture proceedings shall be instituted in accordance with |
| |||||||
| |||||||
1 | the Drug Asset Forfeiture Procedure Act. The exemptions from | ||||||
2 | forfeiture provisions of Section 8 of the Drug Asset Forfeiture | ||||||
3 | Procedure Act are applicable. | ||||||
4 | (d) Property taken or detained under this Section shall not | ||||||
5 | be
subject to replevin, but is deemed to be in the custody of | ||||||
6 | the Director
subject only to the order and judgments of the | ||||||
7 | circuit court having
jurisdiction over the forfeiture | ||||||
8 | proceedings and the decisions of the
State's Attorney under the | ||||||
9 | Drug Asset Forfeiture Procedure Act. When
property is seized | ||||||
10 | under this Act, the seizing agency shall promptly
conduct an | ||||||
11 | inventory of the seized property, estimate the property's | ||||||
12 | value,
and shall forward a copy of the inventory of seized | ||||||
13 | property and the
estimate of the property's value to the | ||||||
14 | Director. Upon receiving notice of
seizure, the Director may:
| ||||||
15 | (1) place the property under seal;
| ||||||
16 | (2) remove the property to a place designated by him;
| ||||||
17 | (3) keep the property in the possession of the seizing | ||||||
18 | agency;
| ||||||
19 | (4) remove the property to a storage area for | ||||||
20 | safekeeping or, if the
property is a negotiable instrument | ||||||
21 | or money and is not needed for
evidentiary purposes, | ||||||
22 | deposit it in an interest bearing account;
| ||||||
23 | (5) place the property under constructive seizure by | ||||||
24 | posting notice of
pending forfeiture on it, by giving | ||||||
25 | notice of pending forfeiture to its
owners and interest | ||||||
26 | holders, or by filing notice of pending forfeiture in
any |
| |||||||
| |||||||
1 | appropriate public record relating to the property; or
| ||||||
2 | (6) provide for another agency or custodian, including | ||||||
3 | an owner, secured
party, or lienholder, to take custody of | ||||||
4 | the property upon the terms and
conditions set by the | ||||||
5 | Director.
| ||||||
6 | (e) No disposition may be made of property under seal until | ||||||
7 | the time
for taking an appeal has elapsed or until all appeals | ||||||
8 | have been
concluded unless a court, upon application therefor, | ||||||
9 | orders the sale of
perishable substances and the deposit of the | ||||||
10 | proceeds of the sale with
the court.
| ||||||
11 | (f) When property is forfeited under this Act the Director | ||||||
12 | shall
sell all such property unless such property is required | ||||||
13 | by law to be
destroyed or is harmful to the public, and shall | ||||||
14 | distribute the proceeds of
the sale, together with any moneys | ||||||
15 | forfeited or seized, in accordance
with subsection (g). | ||||||
16 | However, upon the application of the seizing agency or
| ||||||
17 | prosecutor who was responsible for the investigation, arrest or | ||||||
18 | arrests and
prosecution which lead to the forfeiture, the | ||||||
19 | Director may return any item
of forfeited property to the | ||||||
20 | seizing agency or prosecutor for official use
in the | ||||||
21 | enforcement of laws relating to cannabis or controlled | ||||||
22 | substances,
if the agency or prosecutor can demonstrate that | ||||||
23 | the item requested would
be useful to the agency or prosecutor | ||||||
24 | in their enforcement efforts. When any forfeited conveyance, | ||||||
25 | including an aircraft, vehicle, or vessel, is returned to the | ||||||
26 | seizing agency or prosecutor, the conveyance may be used |
| |||||||
| |||||||
1 | immediately in the enforcement of the criminal laws of this | ||||||
2 | State. Upon disposal, all proceeds from the sale of the | ||||||
3 | conveyance must be used for drug enforcement purposes. When
any | ||||||
4 | real property returned to the seizing agency is sold by the | ||||||
5 | agency or
its unit of government, the proceeds of the sale | ||||||
6 | shall be delivered to the
Director and distributed in | ||||||
7 | accordance with subsection (g).
| ||||||
8 | (g) All monies and the sale proceeds of all other property | ||||||
9 | forfeited and
seized under this Act shall be distributed as | ||||||
10 | follows:
| ||||||
11 | (1)(i) 65% shall be distributed to the metropolitan | ||||||
12 | enforcement group,
local, municipal, county, or state law | ||||||
13 | enforcement agency or agencies which
conducted or | ||||||
14 | participated in the investigation resulting in the | ||||||
15 | forfeiture.
The distribution shall bear a reasonable | ||||||
16 | relationship to the degree of
direct participation of the | ||||||
17 | law enforcement agency in the effort resulting
in the | ||||||
18 | forfeiture, taking into account the total value of the | ||||||
19 | property
forfeited and the total law enforcement effort | ||||||
20 | with respect to the
violation of the law upon which the | ||||||
21 | forfeiture is based.
Amounts distributed to the agency or | ||||||
22 | agencies shall be used for the
enforcement of laws | ||||||
23 | governing cannabis and controlled substances; for public | ||||||
24 | education in the community or schools in the
prevention or | ||||||
25 | detection of the abuse of drugs or
alcohol; or for security | ||||||
26 | cameras used for the prevention or detection of violence, |
| |||||||
| |||||||
1 | except
that amounts distributed to the Secretary of State | ||||||
2 | shall be deposited into
the Secretary of State Evidence | ||||||
3 | Fund to be used as provided in Section
2-115 of the | ||||||
4 | Illinois Vehicle Code.
| ||||||
5 | (ii) Any local, municipal, or county law enforcement | ||||||
6 | agency entitled to receive a monetary distribution of | ||||||
7 | forfeiture proceeds may share those forfeiture proceeds | ||||||
8 | pursuant to the terms of an intergovernmental agreement | ||||||
9 | with a municipality that has a population in excess of | ||||||
10 | 20,000 if: | ||||||
11 | (I) the receiving agency has entered into an | ||||||
12 | intergovernmental agreement with the municipality to | ||||||
13 | provide police services; | ||||||
14 | (II) the intergovernmental agreement for police | ||||||
15 | services provides for consideration in an amount of not | ||||||
16 | less than $1,000,000 per year; | ||||||
17 | (III) the seizure took place within the | ||||||
18 | geographical limits of the municipality; and | ||||||
19 | (IV) the funds are used only for the enforcement
of | ||||||
20 | laws governing cannabis and controlled substances; for | ||||||
21 | public education in the community or schools in the
| ||||||
22 | prevention or detection of the abuse of drugs or
| ||||||
23 | alcohol; or
for security cameras used for the | ||||||
24 | prevention or detection
of violence or the | ||||||
25 | establishment of a municipal police
force, including | ||||||
26 | the training of officers, construction of
a police |
| |||||||
| |||||||
1 | station, the purchase of law enforcement
equipment, or | ||||||
2 | vehicles. | ||||||
3 | (2)(i) 12.5% shall be distributed to the Office of the | ||||||
4 | State's
Attorney of the county in which the prosecution | ||||||
5 | resulting in the forfeiture
was instituted, deposited in a | ||||||
6 | special fund in the county treasury and
appropriated to the | ||||||
7 | State's Attorney for use in the enforcement of laws
| ||||||
8 | governing cannabis and controlled substances; for public | ||||||
9 | education in the community or schools in the
prevention or | ||||||
10 | detection of the abuse of drugs or
alcohol; or at the | ||||||
11 | discretion of the State's Attorney, in addition to other | ||||||
12 | authorized purposes, to make grants to local substance | ||||||
13 | abuse treatment facilities and half-way houses. In | ||||||
14 | counties over 3,000,000
population, 25% will be | ||||||
15 | distributed to the Office of the State's Attorney for use | ||||||
16 | in the
enforcement of laws governing cannabis and | ||||||
17 | controlled substances; for public education in the | ||||||
18 | community or schools in the
prevention or detection of the | ||||||
19 | abuse of drugs or
alcohol; or at the discretion of the | ||||||
20 | State's Attorney, in addition to other authorized | ||||||
21 | purposes, to make grants to local substance abuse treatment | ||||||
22 | facilities and half-way houses. If the
prosecution is | ||||||
23 | undertaken solely by the Attorney General, the portion
| ||||||
24 | provided hereunder shall be distributed to the Attorney | ||||||
25 | General for use in
the enforcement of laws governing | ||||||
26 | cannabis and controlled substances.
|
| |||||||
| |||||||
1 | (ii) 12.5% shall be distributed to the Office of the | ||||||
2 | State's Attorneys
Appellate Prosecutor and deposited in | ||||||
3 | the Narcotics Profit Forfeiture Fund
of that Office to be | ||||||
4 | used for additional expenses incurred in the
| ||||||
5 | investigation, prosecution and appeal of cases arising | ||||||
6 | under laws governing
cannabis and controlled substances or | ||||||
7 | for public education in the community or schools in the
| ||||||
8 | prevention or detection of the abuse of drugs or
alcohol. | ||||||
9 | The Office of the State's Attorneys
Appellate Prosecutor | ||||||
10 | shall not receive distribution from cases brought in
| ||||||
11 | counties with over 3,000,000 population.
| ||||||
12 | (3) 10% shall be retained by the Department of State | ||||||
13 | Police for expenses
related to the administration and sale | ||||||
14 | of seized and forfeited property.
| ||||||
15 | (h) Items described in paragraphs (1) through (6) of | ||||||
16 | subsection (a) of this Section used, possessed, or derived from | ||||||
17 | activities that are in compliance with the Cannabis Regulation | ||||||
18 | and Taxation Act are not subject to forfeiture. | ||||||
19 | (Source: P.A. 99-686, eff. 7-29-16.)
| ||||||
20 | Section 1030. The Drug Paraphernalia Control Act is amended | ||||||
21 | by changing Sections 2, 3.5, 4, and 6 as follows:
| ||||||
22 | (720 ILCS 600/2) (from Ch. 56 1/2, par. 2102)
| ||||||
23 | Sec. 2. As used in this Act, unless the context otherwise | ||||||
24 | requires:
|
| |||||||
| |||||||
1 | (a) (Blank). The term "cannabis" shall have the meaning | ||||||
2 | ascribed to it in Section
3 of the Cannabis Control Act, as if | ||||||
3 | that definition were incorporated
herein.
| ||||||
4 | (b) The term "controlled substance" shall have the meaning | ||||||
5 | ascribed to
it in Section 102 of the Illinois Controlled | ||||||
6 | Substances Act, as if that
definition were incorporated herein.
| ||||||
7 | (c) "Deliver" or "delivery" means the actual, constructive | ||||||
8 | or attempted
transfer of possession, with or without | ||||||
9 | consideration, whether or not there
is an agency relationship.
| ||||||
10 | (d) "Drug paraphernalia" means all equipment, products and | ||||||
11 | materials of
any kind, other than methamphetamine | ||||||
12 | manufacturing materials as defined in Section 10 of the | ||||||
13 | Methamphetamine Control and Community Protection Act, which | ||||||
14 | are intended to be used unlawfully in planting, propagating,
| ||||||
15 | cultivating, growing, harvesting, manufacturing, compounding,
| ||||||
16 | converting, producing, processing, preparing, testing, | ||||||
17 | analyzing, packaging,
repackaging, storing, containing, | ||||||
18 | concealing, injecting, ingesting, inhaling
or otherwise | ||||||
19 | introducing into the human body cannabis or a controlled | ||||||
20 | substance
in violation of the Cannabis Control Act, the | ||||||
21 | Illinois Controlled
Substances
Act , or the Methamphetamine | ||||||
22 | Control and Community Protection Act or a synthetic drug | ||||||
23 | product or misbranded drug in violation of the Illinois Food, | ||||||
24 | Drug and Cosmetic Act. It
includes, but is not limited to:
| ||||||
25 | (1) kits intended to be used unlawfully in | ||||||
26 | manufacturing, compounding,
converting,
producing, |
| |||||||
| |||||||
1 | processing or preparing cannabis or a controlled | ||||||
2 | substance;
| ||||||
3 | (2) isomerization devices intended to be used | ||||||
4 | unlawfully in increasing
the potency of any species of | ||||||
5 | plant which is cannabis or a controlled
substance;
| ||||||
6 | (3) testing equipment intended to be used unlawfully in | ||||||
7 | a private home for
identifying
or in analyzing the | ||||||
8 | strength, effectiveness or purity of cannabis or | ||||||
9 | controlled
substances;
| ||||||
10 | (4) diluents and adulterants intended to be used | ||||||
11 | unlawfully for cutting
cannabis
or a controlled substance | ||||||
12 | by private persons;
| ||||||
13 | (5) objects intended to be used unlawfully in | ||||||
14 | ingesting, inhaling,
or otherwise introducing cannabis, | ||||||
15 | cocaine , hashish, hashish oil, or a synthetic drug product | ||||||
16 | or misbranded drug in violation of the Illinois Food, Drug | ||||||
17 | and Cosmetic Act into
the human body including, where | ||||||
18 | applicable, the following items:
| ||||||
19 | (A) water pipes;
| ||||||
20 | (B) carburetion tubes and devices;
| ||||||
21 | (C) smoking and carburetion masks;
| ||||||
22 | (D) miniature cocaine spoons and cocaine vials;
| ||||||
23 | (E) carburetor pipes;
| ||||||
24 | (F) electric pipes;
| ||||||
25 | (G) air-driven pipes;
| ||||||
26 | (H) chillums;
|
| |||||||
| |||||||
1 | (I) bongs;
| ||||||
2 | (J) ice pipes or chillers;
| ||||||
3 | (6) any item whose purpose, as announced or described | ||||||
4 | by the seller, is
for use in violation of this Act.
| ||||||
5 | (Source: P.A. 97-872, eff. 7-31-12.)
| ||||||
6 | (720 ILCS 600/3.5)
| ||||||
7 | Sec. 3.5. Possession of drug paraphernalia.
| ||||||
8 | (a) A person who knowingly possesses an item of drug | ||||||
9 | paraphernalia
with
the intent to use it in ingesting, inhaling, | ||||||
10 | or
otherwise introducing cannabis
or
a controlled substance | ||||||
11 | into the human body, or in preparing cannabis or a
controlled | ||||||
12 | substance
for that use, is guilty of a Class A misdemeanor for | ||||||
13 | which the court
shall impose a minimum fine of $750 in addition | ||||||
14 | to any other penalty prescribed
for a Class A
misdemeanor. This | ||||||
15 | subsection (a) does not apply to a person who is legally
| ||||||
16 | authorized to possess
hypodermic syringes or needles under the | ||||||
17 | Hypodermic Syringes and Needles Act.
| ||||||
18 | (b) In determining intent under subsection (a), the trier | ||||||
19 | of fact may take
into consideration the proximity of the | ||||||
20 | cannabis or controlled substances to
drug
paraphernalia or the | ||||||
21 | presence of cannabis or a controlled substance on the drug
| ||||||
22 | paraphernalia.
| ||||||
23 | (c) (Blank). If a person violates subsection (a) of Section | ||||||
24 | 4 of the Cannabis Control Act, the penalty for possession of | ||||||
25 | any drug paraphernalia seized during the violation for that |
| |||||||
| |||||||
1 | offense shall be a civil law violation punishable by a minimum | ||||||
2 | fine of $100 and a maximum fine of $200. The proceeds of the | ||||||
3 | fine shall be payable to the clerk of the circuit court. Within | ||||||
4 | 30 days after the deposit of the fine, the clerk shall | ||||||
5 | distribute the proceeds of the fine as follows: | ||||||
6 | (1) $10 of the fine to the circuit clerk and $10 of the | ||||||
7 | fine to the law enforcement agency that issued the | ||||||
8 | citation; the proceeds of each $10 fine distributed to the | ||||||
9 | circuit clerk and each $10 fine distributed to the law | ||||||
10 | enforcement agency that issued the citation for the | ||||||
11 | violation shall be used to defer the cost of automatic | ||||||
12 | expungements under paragraph (2.5) of subsection (a) of | ||||||
13 | Section 5.2 of the Criminal Identification Act; | ||||||
14 | (2) $15 to the county to fund drug addiction services; | ||||||
15 | (3) $10 to the Office of the State's Attorneys | ||||||
16 | Appellate Prosecutor for use in training programs; | ||||||
17 | (4) $10 to the State's Attorney; and | ||||||
18 | (5) any remainder of the fine to the law enforcement | ||||||
19 | agency that issued the citation for the violation. | ||||||
20 | With respect to funds designated for the Department of | ||||||
21 | State Police, the moneys shall be remitted by the circuit court | ||||||
22 | clerk to the Department of State Police within one month after | ||||||
23 | receipt for deposit into the State Police Operations Assistance | ||||||
24 | Fund. With respect to funds designated for the Department of | ||||||
25 | Natural Resources, the Department of Natural Resources shall | ||||||
26 | deposit the moneys into the Conservation Police Operations |
| |||||||
| |||||||
1 | Assistance Fund. | ||||||
2 | (Source: P.A. 99-697, eff. 7-29-16.)
| ||||||
3 | (720 ILCS 600/4) (from Ch. 56 1/2, par. 2104)
| ||||||
4 | Sec. 4. Exemptions. This Act does not apply to:
| ||||||
5 | (a) Items used in the preparation, compounding,
| ||||||
6 | packaging, labeling, or other use of cannabis or a | ||||||
7 | controlled substance
as an incident to lawful research, | ||||||
8 | teaching, or chemical analysis and not for
sale.
| ||||||
9 | (b) Items historically and customarily used in | ||||||
10 | connection
with the planting, propagating, cultivating, | ||||||
11 | growing, harvesting,
manufacturing, compounding, | ||||||
12 | converting, producing, processing, preparing,
testing, | ||||||
13 | analyzing, packaging, repackaging, storing, containing, | ||||||
14 | concealing,
injecting, ingesting, or inhaling of tobacco | ||||||
15 | or any other lawful substance.
| ||||||
16 | Items exempt under this subsection include, but are not | ||||||
17 | limited to, garden
hoes, rakes, sickles, baggies, tobacco | ||||||
18 | pipes, and cigarette-rolling papers.
| ||||||
19 | (c) Items listed in Section 2 of this Act which are | ||||||
20 | used for
decorative
purposes, when such items have been | ||||||
21 | rendered completely inoperable or incapable
of being used | ||||||
22 | for any illicit purpose prohibited by this Act.
| ||||||
23 | (d) A person who is legally authorized to possess | ||||||
24 | hypodermic syringes or
needles under the Hypodermic | ||||||
25 | Syringes and Needles Act.
|
| |||||||
| |||||||
1 | In determining whether or not a particular item is exempt under | ||||||
2 | this
Section, the trier of fact should consider, in addition
to | ||||||
3 | all other logically relevant factors, the following:
| ||||||
4 | (1) the general, usual, customary, and historical use | ||||||
5 | to which the item
involved has been put;
| ||||||
6 | (2) expert evidence concerning the ordinary or | ||||||
7 | customary use of the item
and the effect of any peculiarity | ||||||
8 | in the design or engineering of the device
upon its | ||||||
9 | functioning;
| ||||||
10 | (3) any written instructions accompanying the delivery | ||||||
11 | of the item
concerning
the purposes or uses to which the | ||||||
12 | item can or may be put;
| ||||||
13 | (4) any oral instructions provided by the seller of the | ||||||
14 | item at the time
and place of sale or commercial delivery;
| ||||||
15 | (5) any national or local advertising concerning the | ||||||
16 | design, purpose
or use of the item involved, and the entire | ||||||
17 | context in which such advertising
occurs;
| ||||||
18 | (6) the manner, place and circumstances in which the | ||||||
19 | item was displayed
for sale, as well as any item or items | ||||||
20 | displayed for sale or otherwise
exhibited
upon the premises | ||||||
21 | where the sale was made;
| ||||||
22 | (7) whether the owner or anyone in control of the | ||||||
23 | object is a legitimate
supplier of like or related items to | ||||||
24 | the community, such as a licensed
distributor or dealer of | ||||||
25 | tobacco products;
| ||||||
26 | (8) the existence and scope of legitimate uses for the |
| |||||||
| |||||||
1 | object in the
community.
| ||||||
2 | (Source: P.A. 95-331, eff. 8-21-07.)
| ||||||
3 | (720 ILCS 600/6) (from Ch. 56 1/2, par. 2106)
| ||||||
4 | Sec. 6.
This Act is intended to be used solely for the | ||||||
5 | suppression
of the commercial traffic in and possession of | ||||||
6 | items that,
within the context of the sale
or offering for | ||||||
7 | sale, or possession, are clearly and beyond a reasonable
doubt | ||||||
8 | intended
for the illegal and unlawful use of cannabis or | ||||||
9 | controlled substances.
To this end all reasonable and | ||||||
10 | common-sense inferences shall be drawn in
favor of the | ||||||
11 | legitimacy of any transaction or item.
| ||||||
12 | (Source: P.A. 93-526, eff. 8-12-03.)
| ||||||
13 | (725 ILCS 5/115-23 rep.) | ||||||
14 | Section 1035. The Code of Criminal Procedure of 1963 is | ||||||
15 | amended by repealing Section 115-23.
| ||||||
16 | Section 1040. The Narcotics Profit Forfeiture Act is | ||||||
17 | amended by changing Section 3 as follows:
| ||||||
18 | (725 ILCS 175/3) (from Ch. 56 1/2, par. 1653)
| ||||||
19 | Sec. 3. Definitions. | ||||||
20 | (a) "Narcotics activity" means:
| ||||||
21 | 1. Any conduct punishable as a felony under the | ||||||
22 | Cannabis Control Act or
the Illinois Controlled Substances |
| |||||||
| |||||||
1 | Act, or
| ||||||
2 | 2. Any conduct punishable, by imprisonment for more | ||||||
3 | than one year, as
an offense against the law of the United | ||||||
4 | States or any State, concerning
narcotics, controlled | ||||||
5 | substances, dangerous drugs, or any substance or things
| ||||||
6 | scheduled or listed under the Cannabis Control Act, the | ||||||
7 | Illinois Controlled
Substances Act, or the Methamphetamine | ||||||
8 | Control and Community Protection Act.
| ||||||
9 | "Narcotics activity" does not include conduct that is | ||||||
10 | lawful under the Cannabis Regulation and Taxation Act. | ||||||
11 | (b) "Pattern of narcotics activity" means 2 or more acts of | ||||||
12 | narcotics
activity of which at least 2 such acts were committed | ||||||
13 | within 5 years of
each other. At least one of those acts of | ||||||
14 | narcotics activity must have been
committed after the effective | ||||||
15 | date of this Act and at least one of such
acts shall be or shall | ||||||
16 | have been punishable as a Class X, Class 1 or Class 2 felony.
| ||||||
17 | (c) "Person" includes any individual or entity capable of | ||||||
18 | holding a legal
or beneficial interest in property.
| ||||||
19 | (d) "Enterprise" includes any individual, partnership, | ||||||
20 | corporation, association,
or other entity, or group of | ||||||
21 | individuals associated in fact, although not
a legal entity.
| ||||||
22 | (Source: P.A. 94-556, eff. 9-11-05.)".
|