Bill Amendment: IL SB3233 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: BUILD ILLINOIS HOMES ACT

Status: 2024-05-16 - Added as Co-Sponsor Sen. Ram Villivalam [SB3233 Detail]

Download: Illinois-2023-SB3233-Senate_Amendment_001.html

Sen. Robert Peters

Filed: 4/3/2024

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1
AMENDMENT TO SENATE BILL 3233
2 AMENDMENT NO. ______. Amend Senate Bill 3233 by replacing
3everything after the enacting clause with the following:
4 "Section 1. Short title. This Act may be cited as the Build
5Illinois Homes Tax Credit Act.
6 Section 5. Definitions. As used in this Act, unless the
7context clearly requires otherwise:
8 "Allocation schedule certification" means a certification
9issued by the owner of a qualified development, or by the
10owner's designee, under subsection (d) of Section 15 of this
11Act. The certification shall include the following:
12 (1) the building identification number for each
13 building included in the qualified development;
14 (2) the calendar year in which the last building of
15 the qualified development was placed in service;
16 (3) the amount of the credit allowed for each year of

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1 the credit period;
2 (4) the amount of credit allocated to each qualified
3 taxpayer for the qualified development for the applicable
4 tax year; and
5 (5) confirmation of whether each qualified taxpayer
6 elects to apply the credit to income tax or insurance
7 premium tax.
8 "Authority" means:
9 (1) the Illinois Housing Development Authority; or
10 (2) the City of Chicago Department of Housing.
11 "Building identification number" means the number assigned
12to a building within the qualified development by an Authority
13when allocating the federal tax credit.
14 "Credit" means the credit allowed under this Act.
15 "Credit period" means a period of 6 taxable years
16beginning with the taxable year in which a qualified
17development is placed in service. No credit period may include
18a taxable year beginning prior to January 1, 2025. If a
19qualified development consists of more than one building, then
20the qualified development is deemed to be placed in service in
21the taxable year in which the last building of the qualified
22development is placed in service.
23 "Department" means the Department of Revenue.
24 "Federal tax credit" means the federal low-income housing
25tax credit provided by Section 42 of the federal Internal
26Revenue Code, including federal low-income housing tax credits

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1issued under 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4).
2 "Qualified basis" means the qualified basis of the
3qualified development as determined under Section 42 of the
4federal Internal Revenue Code of 1986.
5 "Qualified development" means a qualified low-income
6housing project, as that term is defined in Section 42 of the
7federal Internal Revenue Code of 1986, that is located in the
8State and is determined to be eligible for the federal tax
9credit set forth in Section 42 of the Internal Revenue Code.
10 "Qualified taxpayer" means an individual, person, firm,
11corporation, or other entity that owns a direct or indirect
12interest in a qualified development and that is subject to the
13taxes imposed by subsections (a) and (b) of Section 201 of the
14Illinois Income Tax Act or any privilege tax or retaliatory
15tax, penalty, fee, charge, or payment imposed by the Illinois
16Insurance Code.
17 "Reservation letter" means a reservation letter issued by
18the Illinois Housing Development Authority or a reservation
19agreement issued by the City of Chicago Department of Housing.
20 "State credit eligibility statement" means a statement
21issued by an Authority under Section 10 or documents submitted
22in satisfaction of a statement as allowed under Section 10.
23 "State tax return" means the income tax return filed with
24the Department or the privilege and retaliatory tax return
25filed with the Department of Insurance, as applicable.

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1 Section 10. State credit eligibility statements. Following
2construction or rehabilitation of the qualified development,
3the applicable Authority shall issue a State credit
4eligibility statement with respect to each building located in
5the qualified development certifying that the building
6qualifies for the credit under this Act and specifying:
7 (1) the calendar year in which the last building of
8 the qualified development was placed in service;
9 (2) the amount of the credit allowed for each year of
10 the credit period;
11 (3) the maximum qualified basis of the qualified
12 development taken into account in determining such annual
13 credit amount;
14 (4) a building identification number; and
15 (5) that the qualified development is eligible for and
16 has applied to receive a federal tax credit.
17 The State credit eligibility statement shall be issued by
18an Authority simultaneously with IRS Form 8609. For taxable
19years beginning on or after January 1, 2025 and ending on or
20before December 31, 2025, an Authority may issue, and the
21Department and Department of Insurance may accept, an IRS Form
228609, including any additional statements attached to the IRS
23Form 8609, and the reservation letter issued by the Authority
24for the qualified development as the State credit eligibility
25statement in satisfaction of both federal requirements and the
26requirements set forth in this Section.

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1 The State credit eligibility statement shall include a
2section to be completed by the owner of the qualified
3development annually for each year of the credit period
4certifying that the qualified development conforms with all
5compliance requirements, including all federal compliance
6requirements for the federal tax credit. The State credit
7eligibility statement shall be filed with the project owner's
8State tax return annually for each year of the credit period.
9 Section 15. Credit for low-income housing developments.
10 (a) An Authority shall administer the credit in accordance
11with the federal tax credit and shall award the credit
12simultaneously with the award of the federal tax credit.
13 (a-5) For taxable years beginning on or after January 1,
142025 and beginning before January 1, 2030, an Authority may
15award a credit to the owner of a qualified development
16simultaneous with the federal tax credit in an amount
17determined by an Authority, subject to the following
18guidelines:
19 (1) an Authority must find that the credit is
20 necessary for the financial feasibility of the qualified
21 development;
22 (2) the aggregate amount of credits awarded to
23 qualified developments for each calendar year shall not
24 exceed $20,000,000, plus the amount of unallocated
25 credits, if any, from the preceding calendar year, plus

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1 the amount of any credit recaptured or otherwise returned
2 to an Authority since the preceding calendar year;
3 (3) of the $20,000,000 annual allocation:
4 (A) 75.5% of the available credits for each
5 calendar year shall be awarded by the Illinois Housing
6 Development Authority, plus any credits the Illinois
7 Housing Development Authority did not award from prior
8 calendar years, plus the amount of any credits
9 recaptured or otherwise returned to the Illinois
10 Housing Development Authority from prior calendar
11 years; and
12 (B) 24.5% of the available credits in each
13 calendar year shall be awarded by the City of Chicago
14 Department of Housing, plus any credits the City of
15 Chicago Department of Housing did not award from prior
16 calendar years, plus the amount of any credits
17 recaptured or otherwise returned to the City of
18 Chicago Department of Housing since the prior calendar
19 year; and
20 (4) unless otherwise provided in this Act, or unless
21 the context clearly requires otherwise, an Authority must
22 determine eligibility for credits and award credits in
23 accordance with the standards and requirements set forth
24 in Section 42 of the federal Internal Revenue Code of 1986
25 and, to the extent possible, use the same forms that are
26 used in administering the credit under Section 42 of the

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1 federal Internal Revenue Code of 1986.
2 (b) For tax years during the credit period, any qualified
3taxpayer is allowed a credit, as provided in this Act, against
4either of the following: (i) the taxes imposed by subsections
5(a) and (b) of Section 201 of the Illinois Income Tax Act; or
6(ii) any privilege tax or retaliatory tax, penalty, fee,
7charge, or payment imposed under the Illinois Insurance Code
8as provided in subsection (e-5).
9 (b-5) The amount of credit awarded pursuant to a
10reservation letter shall be claimable in each year of the
11credit period.
12 (c) A qualified taxpayer may claim a credit under this Act
13so long as the taxpayer's direct or indirect interest in the
14qualified development is acquired prior to the filing of its
15tax return claiming the credit. On or before March 31
16following each year of the credit period, the owner must
17submit to the Department, the Department of Insurance, and the
18applicable Authority an allocation schedule certification, in
19an electronic format prescribed by the Department, the
20Department of Insurance, and the Authority, respectively,
21detailing the amount of the credit allocated to the qualified
22taxpayer for the applicable year and stating whether the
23qualified taxpayer has elected to claim the credit against the
24taxpayer's State income tax or insurance privilege tax or
25retaliatory tax liability. The taxpayer may assign to a
26designee the duty of preparing and submitting the allocation

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1schedule certification. In that case, the designee must
2provide the allocation schedule certification to the
3Department, the Department of Insurance, and the applicable
4Authority on or before the deadline for submission. The
5qualified taxpayer must notify the Department, the Department
6of Insurance, and the applicable Authority if it assigns that
7duty to its designee.
8 The allocation schedule certification submitted under this
9Section may be amended if the State credit eligibility
10statement for a project is received after the deadline for
11filing the allocation schedule certification or if all credits
12have not been awarded by the deadline for filing the
13allocation schedule certification. Any amendment to an
14allocation schedule certification shall be filed before the
15taxpayer attempts to claim tax credits associated with the
16applicable State credit eligibility statement. Each qualified
17taxpayer is allowed to claim its awarded amount of credit
18subject to any restrictions set forth in this Section. If the
19credit is to be taken against the income tax and the qualified
20taxpayer is a pass-through entity, then the provisions of
21Section 251 of the Illinois Income Tax Act apply.
22 (d) No credit may be awarded under this Act unless the
23qualified development is the subject of a recorded restrictive
24covenant requiring the development to be maintained and
25operated as a qualified development; this requirement for a
26recorded restrictive covenant may be satisfied by the

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1agreement for an extended low-income housing commitment
2required for the federal tax credits as defined in Section
342(h)(6)(B) of the federal Internal Revenue Code of 1986.
4 (e) If, during a taxable year, there is a determination
5that no recorded restrictive covenant meeting the requirements
6of subsection (d) was in effect as of the beginning of that
7year, the determination shall not apply to any period before
8that year and subsection (e) shall be applied without regard
9to that determination if the failure is corrected within one
10year after the date of the determination.
11 (e-5) For tax years ending during the credit period, any
12qualified taxpayer is allowed a credit as provided in this Act
13against the taxes imposed by subsections (a) and (b) of
14Section 201 of the Illinois Income Tax Act, unless the
15qualified taxpayer elects to claim the credit against any
16privilege tax or retaliatory tax, penalty, fee, charge, or
17payment imposed under the Illinois Insurance Code. Those
18elections shall be submitted by the owner of the qualified
19development in the annual allocation schedule certification as
20provided in subsection (c) of this Section.
21 (f) The tax credit under this Act may not reduce the
22taxpayer's liability to less than zero. If the amount of the
23tax credit exceeds the tax liability for the year, the excess
24may be carried forward and applied to the tax liability of the
255 taxable years following the excess credit year. The credit
26must be applied to the earliest year for which there is a tax

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1liability. If there are credits from more than one tax year
2that are available to offset a liability, then the earlier
3credit must be applied first. Credits that are initially
4claimed against taxes imposed by the Illinois Income Tax Act
5may be carried forward only against the taxpayer's future
6Illinois Income Tax liability. Credits that are initially
7claimed against taxes, penalties, fees, charges, and payments
8imposed by the Illinois Insurance Code may be carried forward
9only against taxes, penalties, fees, charges, and payments
10imposed by the Illinois Insurance Code. Credits that are not
11claimed or carried forward may not be refunded to the
12taxpayer. The qualified taxpayer is solely responsible for
13correctly filing tax returns, and an Authority is not
14responsible for monitoring the calculation of taxes under this
15Section.
16 (g) By March 31, 2025 and by March 31 of each year
17thereafter, each Authority shall provide to the Department and
18the Department of Insurance an electronic file containing all
19data related to all State credit eligibility statements issued
20during the preceding year in the manner and form as provided by
21each respective Department.
22 (h) Each Authority is entitled to a reservation fee of 1%
23of the credit awarded under this Section for each year of the
24award to support the cost of compliance monitoring. An
25Authority may exercise the option to impose a compliance fee
26or a penalty in the exercise of its compliance monitoring

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1function under this Act.
2 Section 20. Recapture. If, under Section 42 of the
3Internal Revenue Code, a portion of any federal tax credit
4claimed with respect to a qualified development for which a
5credit has been awarded under this Act is required by a final
6determination by the Internal Revenue Service or a court of
7law with competent jurisdiction to be recaptured during the
8first 6 years after a project is placed in service, then,
9within 60 days after becoming aware of the federal tax credit
10recapture, the project owner shall provide the Department, the
11Department of Insurance, and the applicable Authority with
12notice of the federal tax credit recapture. Notice shall be
13provided in the manner and form as provided by the Department,
14the Department of Insurance, and the Authority, respectively.
15If an Authority issues a federal Form 8823 to the owner of a
16qualified development that has been awarded a credit under
17this Act, and an Authority has not been notified within 6
18months of filing the Form 8823 that the noncompliance has been
19remedied, an Authority shall submit the Form 8823 to the
20Department or Department of Insurance, as applicable. The
21amount of credit subject to recapture shall be proportionately
22equal to the amount of the qualified development's federal tax
23credits that are subject to recapture. If the project owner
24(or one of the project owner's direct or indirect members)
25fails to notify the Department or the Department of Insurance,

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1as applicable, of any final determination of recapture of the
2federal tax credit, then the entire amount of the State tax
3credit awarded for the qualified development may be subject to
4recapture. The qualified taxpayer subject to recapture shall
5increase the qualified taxpayer's tax by the amount of any
6credit subject to recapture in the tax year the qualified
7taxpayer is notified of the recapture. If multiple taxpayers
8claimed credit with respect to the building for which credit
9is to be recaptured, each of those taxpayers shall be liable
10for a portion of the recapture equal to the percentages of
11credit with respect to the building originally claimed by the
12taxpayer.
13 Section 25. Filing requirements. An owner of a qualified
14development that has been awarded a credit and each qualified
15taxpayer claiming any portion of the credit must file with
16their State tax returns a copy of the State credit eligibility
17statement issued by an Authority for that qualified
18development. In addition, the owner of a qualified development
19or its designee shall file a copy of the allocation schedule
20certification and reservation letter prior to any tax return
21being filed claiming a State credit for such qualified
22development. A qualified taxpayer receiving any allocated
23portion of a credit through a pass-through entity shall attach
24to its State tax return a copy of the Schedule K-1-P for that
25taxable year.

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1 Section 30. Compliance monitoring. An Authority, in
2consultation with the Department and Department of Insurance,
3shall monitor and oversee compliance with the provisions of
4this Act and shall report specific occurrences of
5noncompliance to the Department and the Department of
6Insurance in the manner and form as provided by the Department
7and the Department of Insurance. An Authority shall make every
8effort to monitor and report noncompliance using the same
9procedures used for compliance monitoring of the federal tax
10credits.
11 Section 35. Report to the General Assembly.
12 (a) Each Authority must, by March 31, 2026 and by March 31
13of each year thereafter, provide a written report to the
14General Assembly and must publish that report on its website.
15 (b) The report shall:
16 (1) set forth the number of qualified developments
17 that have been awarded tax credits under this Act during
18 the calendar year and the total number of units supported
19 by each qualified development;
20 (2) describe each qualified development that has been
21 awarded tax credits under this Act, including, without
22 limitation, the geographic location of the qualified
23 development, the household type, the income levels
24 intended to be served by the qualified development, and

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1 the rents or set-asides authorized for each qualified
2 development;
3 (3) provide housing market information that
4 demonstrates how the qualified developments supported by
5 the tax credits are addressing the need for affordable
6 housing within the communities they are intended to serve
7 as well as information about any remaining disparities in
8 the affordability of housing within those communities; and
9 (4) provide information about the percentage of
10 qualified developments that were awarded credits and that
11 received incentive scoring points as a result of the
12 general contractor, property manager, architect, or
13 sponsor being certified under the Business Enterprise
14 Program for Minorities, Females, and Persons with a
15 Disability.
16 Section 900. The Illinois Income Tax Act is amended by
17adding Section 241 as follows:
18 (35 ILCS 5/241 new)
19 Sec. 241. Build Illinois Homes Tax Credit Act.
20 (a) For taxable years beginning on or after January 1,
212025 and until the expiration of the program under the Build
22Illinois Homes Tax Credit Act, any eligible taxpayer with
23respect to a credit awarded in accordance with the Build
24Illinois Homes Tax Credit Act that is named on an allocation

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1schedule certification for a particular tax year is entitled
2to a credit against the taxes imposed by subsections (a) and
3(b) of Section 201 as provided in the Build Illinois Homes Tax
4Credit Act.
5 (b) The taxpayer shall attach a copy of the allocation
6schedule certification and the State credit eligibility
7certificate issued under the Build Illinois Homes Tax Credit
8Act to the tax return on which the credits are to be claimed.
9 (c) If, during any taxable year, a taxpayer is notified of
10a final determination that a credit previously claimed on a
11State income tax return in accordance with 42 U.S.C. 42 has
12been recaptured, the tax imposed under subsections (a) and (b)
13of Section 201 for that taxpayer for that taxable year shall be
14increased. The amount of the increase shall be determined by
15(i) recomputing the Build Illinois Homes Tax Credit that would
16have been allowed for the year in which the credit was
17originally allowed by eliminating the recaptured amount from
18such computation, and (ii) subtracting that recomputed credit
19from the amount of credit previously allowed. No Build
20Illinois Homes Tax Credit shall be allowed with respect to any
21credit subject to a final determination of recapture for any
22taxable year ending after the issuance of a recapture notice.
23 Section 905. The Illinois Insurance Code is amended by
24changing Sections 409 and 444 as follows:

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1 (215 ILCS 5/409) (from Ch. 73, par. 1021)
2 Sec. 409. Annual privilege tax payable by companies.
3 (1) As of January 1, 1999 for all health maintenance
4organization premiums written; as of July 1, 1998 for all
5premiums written as accident and health business, voluntary
6health service plan business, dental service plan business, or
7limited health service organization business; and as of
8January 1, 1998 for all other types of insurance premiums
9written, every company doing any form of insurance business in
10this State, including, but not limited to, every risk
11retention group, and excluding all fraternal benefit
12societies, all farm mutual companies, all religious charitable
13risk pooling trusts, and excluding all statutory residual
14market and special purpose entities in which companies are
15statutorily required to participate, whether incorporated or
16otherwise, shall pay, for the privilege of doing business in
17this State, to the Director for the State treasury a State tax
18equal to 0.5% of the net taxable premium written, together
19with any amounts due under Section 444 of this Code, except
20that the tax to be paid on any premium derived from any
21accident and health insurance or on any insurance business
22written by any company operating as a health maintenance
23organization, voluntary health service plan, dental service
24plan, or limited health service organization shall be equal to
250.4% of such net taxable premium written, together with any
26amounts due under Section 444. Upon the failure of any company

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1to pay any such tax due, the Director may, by order, revoke or
2suspend the company's certificate of authority after giving 20
3days written notice to the company, or commence proceedings
4for the suspension of business in this State under the
5procedures set forth by Section 401.1 of this Code. The gross
6taxable premium written shall be the gross amount of premiums
7received on direct business during the calendar year on
8contracts covering risks in this State, except premiums on
9annuities, premiums on which State premium taxes are
10prohibited by federal law, premiums paid by the State for
11health care coverage for Medicaid eligible insureds as
12described in Section 5-2 of the Illinois Public Aid Code,
13premiums paid for health care services included as an element
14of tuition charges at any university or college owned and
15operated by the State of Illinois, premiums on group insurance
16contracts under the State Employees Group Insurance Act of
171971, and except premiums for deferred compensation plans for
18employees of the State, units of local government, or school
19districts. The net taxable premium shall be the gross taxable
20premium written reduced only by the following:
21 (a) the amount of premiums returned thereon which
22 shall be limited to premiums returned during the same
23 preceding calendar year and shall not include the return
24 of cash surrender values or death benefits on life
25 policies including annuities;
26 (b) dividends on such direct business that have been

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1 paid in cash, applied in reduction of premiums or left to
2 accumulate to the credit of policyholders or annuitants.
3 In the case of life insurance, no deduction shall be made
4 for the payment of deferred dividends paid in cash to
5 policyholders on maturing policies; dividends left to
6 accumulate to the credit of policyholders or annuitants
7 shall be included as gross taxable premium written when
8 such dividend accumulations are applied to purchase
9 paid-up insurance or to shorten the endowment or premium
10 paying period.
11 (2) The annual privilege tax payment due from a company
12under subsection (4) of this Section may be reduced by: (a) the
13excess amount, if any, by which the aggregate income taxes
14paid by the company, on a cash basis, for the preceding
15calendar year under Sections 601 and 803 of the Illinois
16Income Tax Act exceed 1.5% of the company's net taxable
17premium written for that prior calendar year, as determined
18under subsection (1) of this Section; and (b) the amount of any
19fire department taxes paid by the company during the preceding
20calendar year under Section 11-10-1 of the Illinois Municipal
21Code. Any deductible amount or offset allowed under items (a)
22and (b) of this subsection for any calendar year will not be
23allowed as a deduction or offset against the company's
24privilege tax liability for any other taxing period or
25calendar year.
26 (3) If a company survives or was formed by a merger,

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1consolidation, reorganization, or reincorporation, the
2premiums received and amounts returned or paid by all
3companies party to the merger, consolidation, reorganization,
4or reincorporation shall, for purposes of determining the
5amount of the tax imposed by this Section, be regarded as
6received, returned, or paid by the surviving or new company.
7 (4)(a) All companies subject to the provisions of this
8Section shall make an annual return for the preceding calendar
9year on or before March 15 setting forth such information on
10such forms as the Director may reasonably require. Payments of
11quarterly installments of the taxpayer's total estimated tax
12for the current calendar year shall be due on or before April
1315, June 15, September 15, and December 15 of such year, except
14that all companies transacting insurance in this State whose
15annual tax for the immediately preceding calendar year was
16less than $5,000 shall make only an annual return. Failure of a
17company to make the annual payment, or to make the quarterly
18payments, if required, of at least 25% of either (i) the total
19tax paid during the previous calendar year or (ii) 80% of the
20actual tax for the current calendar year shall subject it to
21the penalty provisions set forth in Section 412 of this Code.
22 (b) Notwithstanding the foregoing provisions, no annual
23return shall be required or made on March 15, 1998, under this
24subsection. For the calendar year 1998:
25 (i) each health maintenance organization shall have no
26 estimated tax installments;

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1 (ii) all companies subject to the tax as of July 1,
2 1998 as set forth in subsection (1) shall have estimated
3 tax installments due on September 15 and December 15 of
4 1998 which installments shall each amount to no less than
5 one-half of 80% of the actual tax on its net taxable
6 premium written during the period July 1, 1998, through
7 December 31, 1998; and
8 (iii) all other companies shall have estimated tax
9 installments due on June 15, September 15, and December 15
10 of 1998 which installments shall each amount to no less
11 than one-third of 80% of the actual tax on its net taxable
12 premium written during the calendar year 1998.
13 In the year 1999 and thereafter all companies shall make
14annual and quarterly installments of their estimated tax as
15provided by paragraph (a) of this subsection.
16 (5) In addition to the authority specifically granted
17under Article XXV of this Code, the Director shall have such
18authority to adopt rules and establish forms as may be
19reasonably necessary for purposes of determining the
20allocation of Illinois corporate income taxes paid under
21subsections (a) through (d) of Section 201 of the Illinois
22Income Tax Act amongst members of a business group that files
23an Illinois corporate income tax return on a unitary basis,
24for purposes of regulating the amendment of tax returns, for
25purposes of defining terms, and for purposes of enforcing the
26provisions of Article XXV of this Code. The Director shall

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1also have authority to defer, waive, or abate the tax imposed
2by this Section if in his opinion the company's solvency and
3ability to meet its insured obligations would be immediately
4threatened by payment of the tax due.
5 (6) This Section is subject to the provisions of Section
610 of the New Markets Development Program Act.
7 (7) This Section is subject to the provisions of the Build
8Illinois Homes Tax Credit Act.
9(Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)
10 (215 ILCS 5/444) (from Ch. 73, par. 1056)
11 Sec. 444. Retaliation.
12 (1) Whenever the existing or future laws of any other
13state or country shall require of companies incorporated or
14organized under the laws of this State as a condition
15precedent to their doing business in such other state or
16country, compliance with laws, rules, regulations, and
17prohibitions more onerous or burdensome than the rules and
18regulations imposed by this State on foreign or alien
19companies, or shall require any deposit of securities or other
20obligations in such state or country, for the protection of
21policyholders or otherwise or require of such companies or
22agents thereof or brokers the payment of penalties, fees,
23charges, or taxes greater than the penalties, fees, charges,
24or taxes required in the aggregate for like purposes by this
25Code or any other law of this State, of foreign or alien

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1companies, agents thereof or brokers, then such laws, rules,
2regulations, and prohibitions of said other state or country
3shall apply to companies incorporated or organized under the
4laws of such state or country doing business in this State, and
5all such companies, agents thereof, or brokers doing business
6in this State, shall be required to make deposits, pay
7penalties, fees, charges, and taxes, in amounts equal to those
8required in the aggregate for like purposes of Illinois
9companies doing business in such state or country, agents
10thereof or brokers. Whenever any other state or country shall
11refuse to permit any insurance company incorporated or
12organized under the laws of this State to transact business
13according to its usual plan in such other state or country, the
14director may, if satisfied that such company of this State is
15solvent, properly managed, and can operate legally under the
16laws of such other state or country, forthwith suspend or
17cancel the license of every insurance company doing business
18in this State which is incorporated or organized under the
19laws of such other state or country to the extent that it
20insures in this State against any of the risks or hazards which
21are sought to be insured against by the company of this State
22in such other state or country.
23 (2) The provisions of this Section shall not apply to
24residual market or special purpose assessments or guaranty
25fund or guaranty association assessments, both under the laws
26of this State and under the laws of any other state or country,

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1and any tax offset or credit for any such assessment shall, for
2purposes of this Section, be treated as a tax paid both under
3the laws of this State and under the laws of any other state or
4country.
5 (3) The terms "penalties", "fees", "charges", and "taxes"
6in subsection (1) of this Section shall include: the
7penalties, fees, charges, and taxes collected on a cash basis
8under State law and referenced within Article XXV exclusive of
9any items referenced by subsection (2) of this Section, but
10including any tax offset allowed under Section 531.13 of this
11Code; the aggregate Illinois corporate income taxes paid under
12Sections 601 and 803 of the Illinois Income Tax Act during the
13calendar year for which the retaliatory tax calculation is
14being made, less the recapture of any Illinois corporate
15income tax cash refunds to the extent that the amount of tax
16refunded was reported as part of the Illinois basis in the
17calculation of the retaliatory tax for a prior tax year,
18provided that such recaptured refund shall not exceed the
19amount necessary for equivalence of the Illinois basis with
20the state of incorporation basis in such tax year, and after
21any tax offset allowed under Section 531.13 of this Code;
22income or personal property taxes imposed by other states or
23countries; penalties, fees, charges, and taxes of other states
24or countries imposed for purposes like those of the penalties,
25fees, charges, and taxes specified in Article XXV of this Code
26exclusive of any item referenced in subsection (2) of this

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1Section; and any penalties, fees, charges, and taxes required
2as a franchise, privilege, or licensing tax for conducting the
3business of insurance whether calculated as a percentage of
4income, gross receipts, premium, or otherwise.
5 (4) Nothing contained in this Section or Section 409 or
6Section 444.1 is intended to authorize or expand any power of
7local governmental units or municipalities to impose taxes,
8fees, or charges.
9 (5) This Section is subject to the provisions of Section
1010 of the New Markets Development Program Act.
11 (6) This Section is subject to the provisions of the Build
12Illinois Homes Tax Credit Act.
13(Source: P.A. 98-1169, eff. 1-9-15.)
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