Bill Amendment: IL SB3273 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: INC TX-SCHOLARSHIPS
Status: 2024-05-09 - Added as Co-Sponsor Sen. Natalie Toro [SB3273 Detail]
Download: Illinois-2023-SB3273-Senate_Amendment_001.html
Bill Title: INC TX-SCHOLARSHIPS
Status: 2024-05-09 - Added as Co-Sponsor Sen. Natalie Toro [SB3273 Detail]
Download: Illinois-2023-SB3273-Senate_Amendment_001.html
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1 | AMENDMENT TO SENATE BILL 3273 | ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 3273 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 | Workforce Development through Charitable Loan Repayment Act.
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6 | Section 5. Purpose. The purpose of this Act is to create a | ||||||
7 | private sector incentive for qualified workers to work and | ||||||
8 | live in eligible areas while also reducing the student debt | ||||||
9 | burden of those workers.
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10 | Section 10. Definitions. As used in this Act: | ||||||
11 | "Commission" means the Illinois Student Assistance | ||||||
12 | Commission. | ||||||
13 | "Full-time employee" means an individual who is employed | ||||||
14 | for consideration for at least 35 hours each week. | ||||||
15 | "Program" means the Workforce Development Through |
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1 | Charitable Loan Repayment Program established under this Act. | ||||||
2 | "Qualified community foundation" means a community | ||||||
3 | foundation or similar publicly supported organization | ||||||
4 | described in Section 170(b)(1)(A)(vi) of the Internal Revenue | ||||||
5 | Code of 1986 that is organized or operating in this State and | ||||||
6 | that substantially complies, as determined by the Commission, | ||||||
7 | with the national standards for United States community | ||||||
8 | foundations established by the National Council on | ||||||
9 | Foundations. | ||||||
10 | "Qualified worker" means an individual who meets all of | ||||||
11 | the following: | ||||||
12 | (1) the individual is a full-time employee of a | ||||||
13 | business that meets one or more of the following: | ||||||
14 | (A) the business is a qualified new business | ||||||
15 | venture that is registered with the Department of | ||||||
16 | Commerce and Economic Opportunity under Section 220 of | ||||||
17 | the Illinois Income Tax Act; | ||||||
18 | (B) the business is primarily engaged in a | ||||||
19 | targeted growth industry; | ||||||
20 | (C) the business is a minority-owned business, a | ||||||
21 | women-owned business, or a business owned by a person | ||||||
22 | with a disability, as those terms are defined in the | ||||||
23 | Business Enterprise for Minorities, Women, and Persons | ||||||
24 | with Disabilities Act; or | ||||||
25 | (D) the business is a not-for-profit corporation, | ||||||
26 | as defined in the General Not For Profit Corporation |
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1 | Act of 1986; | ||||||
2 | (2) the individual is employed by the business | ||||||
3 | described in paragraph (1) at a job site that is located in | ||||||
4 | an Enterprise Zone, an Opportunity Zone, an underserved | ||||||
5 | area, or an area that has a bachelor's degree attainment | ||||||
6 | rate for the population that is below the State or | ||||||
7 | national average for the population, as determined by the | ||||||
8 | United States Census Bureau; and | ||||||
9 | (3) the individual (i) received an associate degree or | ||||||
10 | higher and has an outstanding balance due on a qualified | ||||||
11 | education loan, as defined in Section 221 of the Internal | ||||||
12 | Revenue Code, or (ii) accrued educational debt while | ||||||
13 | pursuing skilled trades and related schooling. | ||||||
14 | "Student loan repayment assistance" means grants or | ||||||
15 | post-graduation scholarships made by a community foundation | ||||||
16 | directly to a student loan servicer on behalf of a qualified | ||||||
17 | worker. | ||||||
18 | "Targeted growth industry" means one or more of the | ||||||
19 | following: | ||||||
20 | (1) advanced manufacturing; | ||||||
21 | (2) agribusiness and food processing; | ||||||
22 | (3) transportation distribution and logistics; | ||||||
23 | (4) life sciences and biotechnology; | ||||||
24 | (5) business and professional services; or | ||||||
25 | (6) energy. | ||||||
26 | "Underserved area" has the meaning given to that term in |
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1 | Section 5-5 of the Economic Development for a Growing Economy | ||||||
2 | Tax Credit Act.
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3 | Section 15. Establishment of the Program; advertisement. | ||||||
4 | The Workforce Development through Charitable Loan Repayment | ||||||
5 | Program is hereby created for the purpose of facilitating | ||||||
6 | student loan repayment assistance for qualified workers. The | ||||||
7 | Program shall be administered by qualified community | ||||||
8 | foundations with the assistance of the Commission. The | ||||||
9 | Commission shall advertise the program on its website.
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10 | Section 20. Applications. Each qualified community | ||||||
11 | foundation shall establish an application process for | ||||||
12 | qualified workers to receive student loan repayment assistance | ||||||
13 | from the qualified community foundation in accordance with | ||||||
14 | this Act and rules adopted for the implementation of this Act | ||||||
15 | by the Commission. If necessary due to limited funds, the | ||||||
16 | qualified community foundation shall give priority to | ||||||
17 | applicants with a higher student debt-to-income ratio when | ||||||
18 | awarding student loan repayment assistance under the Program.
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19 | Section 25. Eligibility; work requirement. Each individual | ||||||
20 | qualified community foundation shall certify the eligibility | ||||||
21 | of qualified workers to receive student loan repayment | ||||||
22 | assistance and establish work requirements in accordance with | ||||||
23 | this Act, rules adopted by the Commission, and the |
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1 | requirements of the individual qualified community foundation.
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2 | Section 30. Administration; rules. Qualified community | ||||||
3 | foundations shall administer the Program under this Act and | ||||||
4 | shall issue to qualified workers any forms required by the | ||||||
5 | Commission or the Department of Revenue. The Commission shall | ||||||
6 | adopt rules for the Program's effective implementation, except | ||||||
7 | that rules regarding the documentation necessary to deduct | ||||||
8 | student loan repayment assistance from the worker's income | ||||||
9 | under subparagraph (LL) of subsection (a) of Section 203 of | ||||||
10 | the Illinois Income Tax Act shall be adopted by the Department | ||||||
11 | of Revenue in consultation with the Commission. Individual | ||||||
12 | qualified community foundations may impose requirements for | ||||||
13 | participation in the Program, which shall not be inconsistent | ||||||
14 | with this Act or the rules adopted by the Commission or the | ||||||
15 | Department of Revenue in connection with this Act.
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16 | Section 35. Reporting. Each qualified community foundation | ||||||
17 | shall submit an annual report to the Commission summarizing | ||||||
18 | its loan repayment activity under the Program. Reports under | ||||||
19 | this Section shall be submitted in the form and manner | ||||||
20 | prescribed by the Commission.
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21 | Section 900. The Illinois Income Tax Act is amended by | ||||||
22 | changing Section 203 as follows:
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1 | (35 ILCS 5/203) | ||||||
2 | Sec. 203. Base income defined. | ||||||
3 | (a) Individuals. | ||||||
4 | (1) In general. In the case of an individual, base | ||||||
5 | income means an amount equal to the taxpayer's adjusted | ||||||
6 | gross income for the taxable year as modified by paragraph | ||||||
7 | (2). | ||||||
8 | (2) Modifications. The adjusted gross income referred | ||||||
9 | to in paragraph (1) shall be modified by adding thereto | ||||||
10 | the sum of the following amounts: | ||||||
11 | (A) An amount equal to all amounts paid or accrued | ||||||
12 | to the taxpayer as interest or dividends during the | ||||||
13 | taxable year to the extent excluded from gross income | ||||||
14 | in the computation of adjusted gross income, except | ||||||
15 | stock dividends of qualified public utilities | ||||||
16 | described in Section 305(e) of the Internal Revenue | ||||||
17 | Code; | ||||||
18 | (B) An amount equal to the amount of tax imposed by | ||||||
19 | this Act to the extent deducted from gross income in | ||||||
20 | the computation of adjusted gross income for the | ||||||
21 | taxable year; | ||||||
22 | (C) An amount equal to the amount received during | ||||||
23 | the taxable year as a recovery or refund of real | ||||||
24 | property taxes paid with respect to the taxpayer's | ||||||
25 | principal residence under the Revenue Act of 1939 and | ||||||
26 | for which a deduction was previously taken under |
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1 | subparagraph (L) of this paragraph (2) prior to July | ||||||
2 | 1, 1991, the retrospective application date of Article | ||||||
3 | 4 of Public Act 87-17. In the case of multi-unit or | ||||||
4 | multi-use structures and farm dwellings, the taxes on | ||||||
5 | the taxpayer's principal residence shall be that | ||||||
6 | portion of the total taxes for the entire property | ||||||
7 | which is attributable to such principal residence; | ||||||
8 | (D) An amount equal to the amount of the capital | ||||||
9 | gain deduction allowable under the Internal Revenue | ||||||
10 | Code, to the extent deducted from gross income in the | ||||||
11 | computation of adjusted gross income; | ||||||
12 | (D-5) An amount, to the extent not included in | ||||||
13 | adjusted gross income, equal to the amount of money | ||||||
14 | withdrawn by the taxpayer in the taxable year from a | ||||||
15 | medical care savings account and the interest earned | ||||||
16 | on the account in the taxable year of a withdrawal | ||||||
17 | pursuant to subsection (b) of Section 20 of the | ||||||
18 | Medical Care Savings Account Act or subsection (b) of | ||||||
19 | Section 20 of the Medical Care Savings Account Act of | ||||||
20 | 2000; | ||||||
21 | (D-10) For taxable years ending after December 31, | ||||||
22 | 1997, an amount equal to any eligible remediation | ||||||
23 | costs that the individual deducted in computing | ||||||
24 | adjusted gross income and for which the individual | ||||||
25 | claims a credit under subsection (l) of Section 201; | ||||||
26 | (D-15) For taxable years 2001 and thereafter, an |
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1 | amount equal to the bonus depreciation deduction taken | ||||||
2 | on the taxpayer's federal income tax return for the | ||||||
3 | taxable year under subsection (k) of Section 168 of | ||||||
4 | the Internal Revenue Code; | ||||||
5 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
6 | or otherwise disposes of property for which the | ||||||
7 | taxpayer was required in any taxable year to make an | ||||||
8 | addition modification under subparagraph (D-15), then | ||||||
9 | an amount equal to the aggregate amount of the | ||||||
10 | deductions taken in all taxable years under | ||||||
11 | subparagraph (Z) with respect to that property. | ||||||
12 | If the taxpayer continues to own property through | ||||||
13 | the last day of the last tax year for which a | ||||||
14 | subtraction is allowed with respect to that property | ||||||
15 | under subparagraph (Z) and for which the taxpayer was | ||||||
16 | allowed in any taxable year to make a subtraction | ||||||
17 | modification under subparagraph (Z), then an amount | ||||||
18 | equal to that subtraction modification. | ||||||
19 | The taxpayer is required to make the addition | ||||||
20 | modification under this subparagraph only once with | ||||||
21 | respect to any one piece of property; | ||||||
22 | (D-17) An amount equal to the amount otherwise | ||||||
23 | allowed as a deduction in computing base income for | ||||||
24 | interest paid, accrued, or incurred, directly or | ||||||
25 | indirectly, (i) for taxable years ending on or after | ||||||
26 | December 31, 2004, to a foreign person who would be a |
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1 | member of the same unitary business group but for the | ||||||
2 | fact that foreign person's business activity outside | ||||||
3 | the United States is 80% or more of the foreign | ||||||
4 | person's total business activity and (ii) for taxable | ||||||
5 | years ending on or after December 31, 2008, to a person | ||||||
6 | who would be a member of the same unitary business | ||||||
7 | group but for the fact that the person is prohibited | ||||||
8 | under Section 1501(a)(27) from being included in the | ||||||
9 | unitary business group because he or she is ordinarily | ||||||
10 | required to apportion business income under different | ||||||
11 | subsections of Section 304. The addition modification | ||||||
12 | required by this subparagraph shall be reduced to the | ||||||
13 | extent that dividends were included in base income of | ||||||
14 | the unitary group for the same taxable year and | ||||||
15 | received by the taxpayer or by a member of the | ||||||
16 | taxpayer's unitary business group (including amounts | ||||||
17 | included in gross income under Sections 951 through | ||||||
18 | 964 of the Internal Revenue Code and amounts included | ||||||
19 | in gross income under Section 78 of the Internal | ||||||
20 | Revenue Code) with respect to the stock of the same | ||||||
21 | person to whom the interest was paid, accrued, or | ||||||
22 | incurred. | ||||||
23 | This paragraph shall not apply to the following: | ||||||
24 | (i) an item of interest paid, accrued, or | ||||||
25 | incurred, directly or indirectly, to a person who | ||||||
26 | is subject in a foreign country or state, other |
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1 | than a state which requires mandatory unitary | ||||||
2 | reporting, to a tax on or measured by net income | ||||||
3 | with respect to such interest; or | ||||||
4 | (ii) an item of interest paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to a person if | ||||||
6 | the taxpayer can establish, based on a | ||||||
7 | preponderance of the evidence, both of the | ||||||
8 | following: | ||||||
9 | (a) the person, during the same taxable | ||||||
10 | year, paid, accrued, or incurred, the interest | ||||||
11 | to a person that is not a related member, and | ||||||
12 | (b) the transaction giving rise to the | ||||||
13 | interest expense between the taxpayer and the | ||||||
14 | person did not have as a principal purpose the | ||||||
15 | avoidance of Illinois income tax, and is paid | ||||||
16 | pursuant to a contract or agreement that | ||||||
17 | reflects an arm's-length interest rate and | ||||||
18 | terms; or | ||||||
19 | (iii) the taxpayer can establish, based on | ||||||
20 | clear and convincing evidence, that the interest | ||||||
21 | paid, accrued, or incurred relates to a contract | ||||||
22 | or agreement entered into at arm's-length rates | ||||||
23 | and terms and the principal purpose for the | ||||||
24 | payment is not federal or Illinois tax avoidance; | ||||||
25 | or | ||||||
26 | (iv) an item of interest paid, accrued, or |
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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 | ||||||
10 | for any tax year beginning after the effective | ||||||
11 | date of this amendment provided such adjustment is | ||||||
12 | made pursuant to regulation adopted by the | ||||||
13 | Department and such regulations provide methods | ||||||
14 | and standards by which the Department will utilize | ||||||
15 | its authority under Section 404 of this Act; | ||||||
16 | (D-18) 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 |
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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 under Sections 951 through 964 of the Internal | ||||||
13 | Revenue Code and amounts included in gross income | ||||||
14 | under Section 78 of the Internal Revenue Code) with | ||||||
15 | respect to the stock of the same person to whom the | ||||||
16 | intangible expenses and costs were directly or | ||||||
17 | indirectly paid, incurred, or accrued. The preceding | ||||||
18 | sentence does not apply to the extent that the same | ||||||
19 | dividends caused a reduction to the addition | ||||||
20 | modification required under Section 203(a)(2)(D-17) of | ||||||
21 | this Act. As used in this subparagraph, the term | ||||||
22 | "intangible expenses and costs" includes (1) expenses, | ||||||
23 | losses, and costs for, or related to, the direct or | ||||||
24 | indirect acquisition, use, maintenance or management, | ||||||
25 | ownership, sale, exchange, or any other disposition of | ||||||
26 | intangible property; (2) losses incurred, directly or |
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1 | indirectly, from factoring transactions or discounting | ||||||
2 | transactions; (3) royalty, patent, technical, and | ||||||
3 | copyright fees; (4) licensing fees; and (5) other | ||||||
4 | similar expenses and costs. For purposes of this | ||||||
5 | subparagraph, "intangible property" includes patents, | ||||||
6 | patent applications, trade names, trademarks, service | ||||||
7 | marks, copyrights, mask works, trade secrets, and | ||||||
8 | 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 | ||||||
13 | is subject in a foreign country or state, other | ||||||
14 | than a state which requires mandatory unitary | ||||||
15 | reporting, to a tax on or measured by net income | ||||||
16 | with respect 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 |
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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 | ||||||
10 | the 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 | ||||||
14 | alternative method of apportionment under Section | ||||||
15 | 304(f); | ||||||
16 | Nothing in this subsection shall preclude the | ||||||
17 | Director from making any other adjustment | ||||||
18 | otherwise allowed under Section 404 of this Act | ||||||
19 | for any tax year beginning after the effective | ||||||
20 | date of this amendment provided such adjustment is | ||||||
21 | made pursuant to regulation adopted by the | ||||||
22 | Department and such regulations provide methods | ||||||
23 | and standards by which the Department will utilize | ||||||
24 | its authority under Section 404 of this Act; | ||||||
25 | (D-19) For taxable years ending on or after | ||||||
26 | December 31, 2008, an amount equal to the amount of |
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1 | insurance premium expenses and costs otherwise allowed | ||||||
2 | as a deduction in computing base income, and that were | ||||||
3 | paid, accrued, or incurred, directly or indirectly, to | ||||||
4 | a person who would be a member of the same unitary | ||||||
5 | business group but for the fact that the person is | ||||||
6 | prohibited under Section 1501(a)(27) from being | ||||||
7 | included in the unitary business group because he or | ||||||
8 | she is ordinarily required to apportion business | ||||||
9 | income under different subsections of Section 304. The | ||||||
10 | addition modification required by this subparagraph | ||||||
11 | shall be reduced to the extent that dividends were | ||||||
12 | included in base income of the unitary group for the | ||||||
13 | same taxable year and received by the taxpayer or by a | ||||||
14 | member of the taxpayer's unitary business group | ||||||
15 | (including amounts included in gross income under | ||||||
16 | Sections 951 through 964 of the Internal Revenue Code | ||||||
17 | and amounts included in gross income under Section 78 | ||||||
18 | of the Internal Revenue Code) with respect to the | ||||||
19 | stock of the same person to whom the premiums and costs | ||||||
20 | were directly or indirectly paid, incurred, or | ||||||
21 | accrued. The preceding sentence does not apply to the | ||||||
22 | extent that the same dividends caused a reduction to | ||||||
23 | the addition modification required under Section | ||||||
24 | 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this | ||||||
25 | Act; | ||||||
26 | (D-20) For taxable years beginning on or after |
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1 | January 1, 2002 and ending on or before December 31, | ||||||
2 | 2006, in the case of a distribution from a qualified | ||||||
3 | tuition program under Section 529 of the Internal | ||||||
4 | Revenue Code, other than (i) a distribution from a | ||||||
5 | College Savings Pool created under Section 16.5 of the | ||||||
6 | State Treasurer Act or (ii) a distribution from the | ||||||
7 | Illinois Prepaid Tuition Trust Fund, an amount equal | ||||||
8 | to the amount excluded from gross income under Section | ||||||
9 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
10 | January 1, 2007, in the case of a distribution from a | ||||||
11 | qualified tuition program under Section 529 of the | ||||||
12 | Internal Revenue Code, other than (i) a distribution | ||||||
13 | from a College Savings Pool created under Section 16.5 | ||||||
14 | of the State Treasurer Act, (ii) a distribution from | ||||||
15 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
16 | distribution from a qualified tuition program under | ||||||
17 | Section 529 of the Internal Revenue Code that (I) | ||||||
18 | adopts and determines that its offering materials | ||||||
19 | comply with the College Savings Plans Network's | ||||||
20 | disclosure principles and (II) has made reasonable | ||||||
21 | efforts to inform in-state residents of the existence | ||||||
22 | of in-state qualified tuition programs by informing | ||||||
23 | Illinois residents directly and, where applicable, to | ||||||
24 | inform financial intermediaries distributing the | ||||||
25 | program to inform in-state residents of the existence | ||||||
26 | of in-state qualified tuition programs at least |
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1 | annually, an amount equal to the amount excluded from | ||||||
2 | gross income under Section 529(c)(3)(B). | ||||||
3 | For the purposes of this subparagraph (D-20), a | ||||||
4 | qualified tuition program has made reasonable efforts | ||||||
5 | if it makes disclosures (which may use the term | ||||||
6 | "in-state program" or "in-state plan" and need not | ||||||
7 | specifically refer to Illinois or its qualified | ||||||
8 | programs by name) (i) directly to prospective | ||||||
9 | participants in its offering materials or makes a | ||||||
10 | public disclosure, such as a website posting; and (ii) | ||||||
11 | where applicable, to intermediaries selling the | ||||||
12 | out-of-state program in the same manner that the | ||||||
13 | out-of-state program distributes its offering | ||||||
14 | materials; | ||||||
15 | (D-20.5) For taxable years beginning on or after | ||||||
16 | January 1, 2018, in the case of a distribution from a | ||||||
17 | qualified ABLE program under Section 529A of the | ||||||
18 | Internal Revenue Code, other than a distribution from | ||||||
19 | a qualified ABLE program created under Section 16.6 of | ||||||
20 | the State Treasurer Act, an amount equal to the amount | ||||||
21 | excluded from gross income under Section 529A(c)(1)(B) | ||||||
22 | of the Internal Revenue Code; | ||||||
23 | (D-21) For taxable years beginning on or after | ||||||
24 | January 1, 2007, in the case of transfer of moneys from | ||||||
25 | a qualified tuition program under Section 529 of the | ||||||
26 | Internal Revenue Code that is administered by the |
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1 | State to an out-of-state program, an amount equal to | ||||||
2 | the amount of moneys previously deducted from base | ||||||
3 | income under subsection (a)(2)(Y) of this Section; | ||||||
4 | (D-21.5) For taxable years beginning on or after | ||||||
5 | January 1, 2018, in the case of the transfer of moneys | ||||||
6 | from a qualified tuition program under Section 529 or | ||||||
7 | a qualified ABLE program under Section 529A of the | ||||||
8 | Internal Revenue Code that is administered by this | ||||||
9 | State to an ABLE account established under an | ||||||
10 | out-of-state ABLE account program, an amount equal to | ||||||
11 | the contribution component of the transferred amount | ||||||
12 | that was previously deducted from base income under | ||||||
13 | subsection (a)(2)(Y) or subsection (a)(2)(HH) of this | ||||||
14 | Section; | ||||||
15 | (D-22) For taxable years beginning on or after | ||||||
16 | January 1, 2009, and prior to January 1, 2018, in the | ||||||
17 | case of a nonqualified withdrawal or refund of moneys | ||||||
18 | from a qualified tuition program under Section 529 of | ||||||
19 | the Internal Revenue Code administered by the State | ||||||
20 | that is not used for qualified expenses at an eligible | ||||||
21 | education institution, an amount equal to the | ||||||
22 | contribution component of the nonqualified withdrawal | ||||||
23 | or refund that was previously deducted from base | ||||||
24 | income under subsection (a)(2)(y) of this Section, | ||||||
25 | provided that the withdrawal or refund did not result | ||||||
26 | from the beneficiary's death or disability. For |
| |||||||
| |||||||
1 | taxable years beginning on or after January 1, 2018: | ||||||
2 | (1) in the case of a nonqualified withdrawal or | ||||||
3 | refund, as defined under Section 16.5 of the State | ||||||
4 | Treasurer Act, of moneys from a qualified tuition | ||||||
5 | program under Section 529 of the Internal Revenue Code | ||||||
6 | administered by the State, an amount equal to the | ||||||
7 | contribution component of the nonqualified withdrawal | ||||||
8 | or refund that was previously deducted from base | ||||||
9 | income under subsection (a)(2)(Y) of this Section, and | ||||||
10 | (2) in the case of a nonqualified withdrawal or refund | ||||||
11 | from a qualified ABLE program under Section 529A of | ||||||
12 | the Internal Revenue Code administered by the State | ||||||
13 | that is not used for qualified disability expenses, an | ||||||
14 | amount equal to the contribution component of the | ||||||
15 | nonqualified withdrawal or refund that was previously | ||||||
16 | deducted from base income under subsection (a)(2)(HH) | ||||||
17 | of this Section; | ||||||
18 | (D-23) An amount equal to the credit allowable to | ||||||
19 | the taxpayer under Section 218(a) of this Act, | ||||||
20 | determined without regard to Section 218(c) of this | ||||||
21 | Act; | ||||||
22 | (D-24) For taxable years ending on or after | ||||||
23 | December 31, 2017, an amount equal to the deduction | ||||||
24 | allowed under Section 199 of the Internal Revenue Code | ||||||
25 | for the taxable year; | ||||||
26 | (D-25) In the case of a resident, an amount equal |
| |||||||
| |||||||
1 | to the amount of tax for which a credit is allowed | ||||||
2 | pursuant to Section 201(p)(7) of this 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 | ||||||
18 | National Guard or, beginning with taxable years ending | ||||||
19 | on or after December 31, 2007, the National Guard of | ||||||
20 | any other state. For taxable years ending on or after | ||||||
21 | December 31, 2001, any amount included in such total | ||||||
22 | in respect of any compensation (including but not | ||||||
23 | limited to any compensation paid or accrued to a | ||||||
24 | serviceman while a prisoner of war or missing in | ||||||
25 | action) paid to a resident by reason of being a member | ||||||
26 | of any component of the Armed Forces of the United |
| |||||||
| |||||||
1 | States and in respect of any compensation paid or | ||||||
2 | accrued to a resident who as a governmental employee | ||||||
3 | was a prisoner of war or missing in action, and in | ||||||
4 | respect of any compensation paid to a resident in 2001 | ||||||
5 | or thereafter by reason of being a member of the | ||||||
6 | Illinois National Guard or, beginning with taxable | ||||||
7 | years ending on or after December 31, 2007, the | ||||||
8 | National Guard of any other state. The provisions of | ||||||
9 | this subparagraph (E) are exempt from the provisions | ||||||
10 | of Section 250; | ||||||
11 | (F) An amount equal to all amounts included in | ||||||
12 | such total pursuant to the provisions of Sections | ||||||
13 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and | ||||||
14 | 408 of the Internal Revenue Code, or included in such | ||||||
15 | total as distributions under the provisions of any | ||||||
16 | retirement or disability plan for employees of any | ||||||
17 | governmental agency or unit, or retirement payments to | ||||||
18 | retired partners, which payments are excluded in | ||||||
19 | computing net earnings from self employment by Section | ||||||
20 | 1402 of the Internal Revenue Code and regulations | ||||||
21 | adopted pursuant thereto; | ||||||
22 | (G) The valuation limitation amount; | ||||||
23 | (H) An amount equal to the amount of any tax | ||||||
24 | imposed by this Act which was refunded to the taxpayer | ||||||
25 | and included in such total for the taxable year; | ||||||
26 | (I) An amount equal to all amounts included in |
| |||||||
| |||||||
1 | such total pursuant to the provisions of Section 111 | ||||||
2 | of the Internal Revenue Code as a recovery of items | ||||||
3 | previously deducted from adjusted gross income in the | ||||||
4 | computation of taxable income; | ||||||
5 | (J) An amount equal to those dividends included in | ||||||
6 | such total which were paid by a corporation which | ||||||
7 | conducts business operations in a River Edge | ||||||
8 | Redevelopment Zone or zones created under the River | ||||||
9 | Edge Redevelopment Zone Act, and conducts | ||||||
10 | substantially all of its operations in a River Edge | ||||||
11 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
12 | exempt from the provisions of Section 250; | ||||||
13 | (K) An amount equal to those dividends included in | ||||||
14 | such total that were paid by a corporation that | ||||||
15 | conducts business operations in a federally designated | ||||||
16 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
17 | a High Impact Business located in Illinois; provided | ||||||
18 | that dividends eligible for the deduction provided in | ||||||
19 | subparagraph (J) of paragraph (2) of this subsection | ||||||
20 | shall not be eligible for the deduction provided under | ||||||
21 | this subparagraph (K); | ||||||
22 | (L) For taxable years ending after December 31, | ||||||
23 | 1983, an amount equal to all social security benefits | ||||||
24 | and railroad retirement benefits included in such | ||||||
25 | total pursuant to Sections 72(r) and 86 of the | ||||||
26 | Internal Revenue Code; |
| |||||||
| |||||||
1 | (M) With the exception of any amounts subtracted | ||||||
2 | under subparagraph (N), an amount equal to the sum of | ||||||
3 | all amounts disallowed as deductions by (i) Sections | ||||||
4 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
5 | and all amounts of expenses allocable to interest and | ||||||
6 | disallowed as deductions by Section 265(a)(1) of the | ||||||
7 | Internal Revenue Code; and (ii) for taxable years | ||||||
8 | ending on or after August 13, 1999, Sections | ||||||
9 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
10 | Internal Revenue Code, plus, for taxable years ending | ||||||
11 | on or after December 31, 2011, Section 45G(e)(3) of | ||||||
12 | the Internal Revenue Code and, for taxable years | ||||||
13 | ending on or after December 31, 2008, any amount | ||||||
14 | included in gross income under Section 87 of the | ||||||
15 | Internal Revenue Code; the provisions of this | ||||||
16 | subparagraph are exempt from the provisions of Section | ||||||
17 | 250; | ||||||
18 | (N) An amount equal to all amounts included in | ||||||
19 | such total which are exempt from taxation by this | ||||||
20 | State either by reason of its statutes or Constitution | ||||||
21 | or by reason of the Constitution, treaties or statutes | ||||||
22 | of the United States; provided that, in the case of any | ||||||
23 | statute of this State that exempts income derived from | ||||||
24 | bonds or other obligations from the tax imposed under | ||||||
25 | this Act, the amount exempted shall be the interest | ||||||
26 | net of bond premium amortization; |
| |||||||
| |||||||
1 | (O) An amount equal to any contribution made to a | ||||||
2 | job training project established pursuant to the Tax | ||||||
3 | Increment Allocation Redevelopment Act; | ||||||
4 | (P) An amount equal to the amount of the deduction | ||||||
5 | used to compute the federal income tax credit for | ||||||
6 | restoration of substantial amounts held under claim of | ||||||
7 | right for the taxable year pursuant to Section 1341 of | ||||||
8 | the Internal Revenue Code or of any itemized deduction | ||||||
9 | taken from adjusted gross income in the computation of | ||||||
10 | taxable income for restoration of substantial amounts | ||||||
11 | held under claim of right for the taxable year; | ||||||
12 | (Q) An amount equal to any amounts included in | ||||||
13 | such total, received by the taxpayer as an | ||||||
14 | acceleration in the payment of life, endowment or | ||||||
15 | annuity benefits in advance of the time they would | ||||||
16 | otherwise be payable as an indemnity for a terminal | ||||||
17 | illness; | ||||||
18 | (R) An amount equal to the amount of any federal or | ||||||
19 | State bonus paid to veterans of the Persian Gulf War; | ||||||
20 | (S) An amount, to the extent included in adjusted | ||||||
21 | gross income, equal to the amount of a contribution | ||||||
22 | made in the taxable year on behalf of the taxpayer to a | ||||||
23 | medical care savings account established under the | ||||||
24 | Medical Care Savings Account Act or the Medical Care | ||||||
25 | Savings Account Act of 2000 to the extent the | ||||||
26 | contribution is accepted by the account administrator |
| |||||||
| |||||||
1 | as provided in that Act; | ||||||
2 | (T) An amount, to the extent included in adjusted | ||||||
3 | gross income, equal to the amount of interest earned | ||||||
4 | in the taxable year on a medical care savings account | ||||||
5 | established under the Medical Care Savings Account Act | ||||||
6 | or the Medical Care Savings Account Act of 2000 on | ||||||
7 | behalf of the taxpayer, other than interest added | ||||||
8 | pursuant to item (D-5) of this paragraph (2); | ||||||
9 | (U) For one taxable year beginning on or after | ||||||
10 | January 1, 1994, an amount equal to the total amount of | ||||||
11 | tax imposed and paid under subsections (a) and (b) of | ||||||
12 | Section 201 of this Act on grant amounts received by | ||||||
13 | the taxpayer under the Nursing Home Grant Assistance | ||||||
14 | Act during the taxpayer's taxable years 1992 and 1993; | ||||||
15 | (V) Beginning with tax years ending on or after | ||||||
16 | December 31, 1995 and ending with tax years ending on | ||||||
17 | or before December 31, 2004, an amount equal to the | ||||||
18 | amount paid by a taxpayer who is a self-employed | ||||||
19 | taxpayer, a partner of a partnership, or a shareholder | ||||||
20 | in a Subchapter S corporation for health insurance or | ||||||
21 | long-term care insurance for that taxpayer or that | ||||||
22 | taxpayer's spouse or dependents, to the extent that | ||||||
23 | the amount paid for that health insurance or long-term | ||||||
24 | care insurance may be deducted under Section 213 of | ||||||
25 | the Internal Revenue Code, has not been deducted on | ||||||
26 | the federal income tax return of the taxpayer, and |
| |||||||
| |||||||
1 | does not exceed the taxable income attributable to | ||||||
2 | that taxpayer's income, self-employment income, or | ||||||
3 | Subchapter S corporation income; except that no | ||||||
4 | deduction shall be allowed under this item (V) if the | ||||||
5 | taxpayer is eligible to participate in any health | ||||||
6 | insurance or long-term care insurance plan of an | ||||||
7 | employer of the taxpayer or the taxpayer's spouse. The | ||||||
8 | amount of the health insurance and long-term care | ||||||
9 | insurance subtracted under this item (V) shall be | ||||||
10 | determined by multiplying total health insurance and | ||||||
11 | long-term care insurance premiums paid by the taxpayer | ||||||
12 | times a number that represents the fractional | ||||||
13 | percentage of eligible medical expenses under Section | ||||||
14 | 213 of the Internal Revenue Code of 1986 not actually | ||||||
15 | deducted on the taxpayer's federal income tax return; | ||||||
16 | (W) For taxable years beginning on or after | ||||||
17 | January 1, 1998, all amounts included in the | ||||||
18 | taxpayer's federal gross income in the taxable year | ||||||
19 | from amounts converted from a regular IRA to a Roth | ||||||
20 | IRA. This paragraph is exempt from the provisions of | ||||||
21 | Section 250; | ||||||
22 | (X) For taxable year 1999 and thereafter, an | ||||||
23 | amount equal to the amount of any (i) distributions, | ||||||
24 | to the extent includible in gross income for federal | ||||||
25 | income tax purposes, made to the taxpayer because of | ||||||
26 | his or her status as a victim of persecution for racial |
| |||||||
| |||||||
1 | or religious reasons by Nazi Germany or any other Axis | ||||||
2 | regime or as an heir of the victim and (ii) items of | ||||||
3 | income, to the extent includible in gross income for | ||||||
4 | federal income tax purposes, attributable to, derived | ||||||
5 | from or in any way related to assets stolen from, | ||||||
6 | hidden from, or otherwise lost to a victim of | ||||||
7 | persecution for racial or religious reasons by Nazi | ||||||
8 | Germany or any other Axis regime immediately prior to, | ||||||
9 | during, and immediately after World War II, including, | ||||||
10 | but not limited to, interest on the proceeds | ||||||
11 | receivable as insurance under policies issued to a | ||||||
12 | victim of persecution for racial or religious reasons | ||||||
13 | by Nazi Germany or any other Axis regime by European | ||||||
14 | insurance companies immediately prior to and during | ||||||
15 | World War II; provided, however, this subtraction from | ||||||
16 | federal adjusted gross income does not apply to assets | ||||||
17 | acquired with such assets or with the proceeds from | ||||||
18 | the sale of such assets; provided, further, this | ||||||
19 | paragraph shall only apply to a taxpayer who was the | ||||||
20 | first recipient of such assets after their recovery | ||||||
21 | and who is a victim of persecution for racial or | ||||||
22 | religious reasons by Nazi Germany or any other Axis | ||||||
23 | regime or as an heir of the victim. The amount of and | ||||||
24 | the eligibility for any public assistance, benefit, or | ||||||
25 | similar entitlement is not affected by the inclusion | ||||||
26 | of items (i) and (ii) of this paragraph in gross income |
| |||||||
| |||||||
1 | for federal income tax purposes. This paragraph is | ||||||
2 | exempt from the provisions of Section 250; | ||||||
3 | (Y) For taxable years beginning on or after | ||||||
4 | January 1, 2002 and ending on or before December 31, | ||||||
5 | 2004, moneys contributed in the taxable year to a | ||||||
6 | College Savings Pool account under Section 16.5 of the | ||||||
7 | State Treasurer Act, except that amounts excluded from | ||||||
8 | gross income under Section 529(c)(3)(C)(i) of the | ||||||
9 | Internal Revenue Code shall not be considered moneys | ||||||
10 | contributed under this subparagraph (Y). For taxable | ||||||
11 | years beginning on or after January 1, 2005, a maximum | ||||||
12 | of $10,000 contributed in the taxable year to (i) a | ||||||
13 | College Savings Pool account under Section 16.5 of the | ||||||
14 | State Treasurer Act or (ii) the Illinois Prepaid | ||||||
15 | Tuition Trust Fund, except that amounts excluded from | ||||||
16 | gross income under Section 529(c)(3)(C)(i) of the | ||||||
17 | Internal Revenue Code shall not be considered moneys | ||||||
18 | contributed under this subparagraph (Y). For purposes | ||||||
19 | of this subparagraph, contributions made by an | ||||||
20 | employer on behalf of an employee, or matching | ||||||
21 | contributions made by an employee, shall be treated as | ||||||
22 | made by the employee. This subparagraph (Y) is exempt | ||||||
23 | from the provisions of Section 250; | ||||||
24 | (Z) For taxable years 2001 and thereafter, for the | ||||||
25 | taxable year in which the bonus depreciation deduction | ||||||
26 | is taken on the taxpayer's federal income tax return |
| |||||||
| |||||||
1 | under subsection (k) of Section 168 of the Internal | ||||||
2 | Revenue Code and for each applicable taxable year | ||||||
3 | thereafter, an amount equal to "x", where: | ||||||
4 | (1) "y" equals the amount of the depreciation | ||||||
5 | deduction taken for the taxable year on the | ||||||
6 | taxpayer's federal income tax return on property | ||||||
7 | for which the bonus depreciation deduction was | ||||||
8 | taken in any year under subsection (k) of Section | ||||||
9 | 168 of the Internal Revenue Code, but not | ||||||
10 | including the bonus depreciation deduction; | ||||||
11 | (2) for taxable years ending on or before | ||||||
12 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
13 | and then divided by 70 (or "y" multiplied by | ||||||
14 | 0.429); and | ||||||
15 | (3) for taxable years ending after December | ||||||
16 | 31, 2005: | ||||||
17 | (i) for property on which a bonus | ||||||
18 | depreciation deduction of 30% of the adjusted | ||||||
19 | basis was taken, "x" equals "y" multiplied by | ||||||
20 | 30 and then divided by 70 (or "y" multiplied | ||||||
21 | by 0.429); | ||||||
22 | (ii) for property on which a bonus | ||||||
23 | depreciation deduction of 50% of the adjusted | ||||||
24 | basis was taken, "x" equals "y" multiplied by | ||||||
25 | 1.0; | ||||||
26 | (iii) for property on which a bonus |
| |||||||
| |||||||
1 | depreciation deduction of 100% of the adjusted | ||||||
2 | basis was taken in a taxable year ending on or | ||||||
3 | after December 31, 2021, "x" equals the | ||||||
4 | depreciation deduction that would be allowed | ||||||
5 | on that property if the taxpayer had made the | ||||||
6 | election under Section 168(k)(7) of the | ||||||
7 | Internal Revenue Code to not claim bonus | ||||||
8 | depreciation on that property; and | ||||||
9 | (iv) for property on which a bonus | ||||||
10 | depreciation deduction of a percentage other | ||||||
11 | than 30%, 50% or 100% of the adjusted basis | ||||||
12 | was taken in a taxable year ending on or after | ||||||
13 | December 31, 2021, "x" equals "y" multiplied | ||||||
14 | by 100 times the percentage bonus depreciation | ||||||
15 | on the property (that is, 100(bonus%)) and | ||||||
16 | then divided by 100 times 1 minus the | ||||||
17 | percentage bonus depreciation on the property | ||||||
18 | (that is, 100(1-bonus%)). | ||||||
19 | The aggregate amount deducted under this | ||||||
20 | subparagraph in all taxable years for any one piece of | ||||||
21 | property may not exceed the amount of the bonus | ||||||
22 | depreciation deduction taken on that property on the | ||||||
23 | taxpayer's federal income tax return under subsection | ||||||
24 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
25 | subparagraph (Z) is exempt from the provisions of | ||||||
26 | Section 250; |
| |||||||
| |||||||
1 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
2 | or otherwise disposes of property for which the | ||||||
3 | taxpayer was required in any taxable year to make an | ||||||
4 | addition modification under subparagraph (D-15), then | ||||||
5 | an amount equal to that addition modification. | ||||||
6 | If the taxpayer continues to own property through | ||||||
7 | the last day of the last tax year for which a | ||||||
8 | subtraction is allowed with respect to that property | ||||||
9 | under subparagraph (Z) and for which the taxpayer was | ||||||
10 | required in any taxable year to make an addition | ||||||
11 | modification under subparagraph (D-15), then an amount | ||||||
12 | equal to that addition modification. | ||||||
13 | The taxpayer is allowed to take the deduction | ||||||
14 | under this subparagraph only once with respect to any | ||||||
15 | one piece of property. | ||||||
16 | This subparagraph (AA) is exempt from the | ||||||
17 | provisions of Section 250; | ||||||
18 | (BB) Any amount included in adjusted gross income, | ||||||
19 | other than salary, received by a driver in a | ||||||
20 | ridesharing arrangement using a motor vehicle; | ||||||
21 | (CC) The amount of (i) any interest income (net of | ||||||
22 | the deductions allocable thereto) taken into account | ||||||
23 | for the taxable year with respect to a transaction | ||||||
24 | with a taxpayer that is required to make an addition | ||||||
25 | modification with respect to such transaction under | ||||||
26 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), |
| |||||||
| |||||||
1 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
2 | the amount of that addition modification, and (ii) any | ||||||
3 | income from intangible property (net of the deductions | ||||||
4 | allocable thereto) taken into account for the taxable | ||||||
5 | year with respect to a transaction with a taxpayer | ||||||
6 | that is required to make an addition modification with | ||||||
7 | respect to such transaction under Section | ||||||
8 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
9 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
10 | addition modification. This subparagraph (CC) is | ||||||
11 | exempt from the provisions of Section 250; | ||||||
12 | (DD) An amount equal to the interest income taken | ||||||
13 | into account for the taxable year (net of the | ||||||
14 | 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 | ||||||
17 | for the fact that the foreign person's business | ||||||
18 | activity outside the United States is 80% or more of | ||||||
19 | that person's total business activity and (ii) for | ||||||
20 | taxable years ending on or after December 31, 2008, to | ||||||
21 | a person who would be a member of the same unitary | ||||||
22 | business group but for the fact that the person is | ||||||
23 | prohibited under Section 1501(a)(27) from being | ||||||
24 | included in the unitary business group because he or | ||||||
25 | she is ordinarily required to apportion business | ||||||
26 | income under different subsections of Section 304, but |
| |||||||
| |||||||
1 | not to exceed the addition modification required to be | ||||||
2 | made for the same taxable year under Section | ||||||
3 | 203(a)(2)(D-17) for interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to the same person. | ||||||
5 | This subparagraph (DD) is exempt from the provisions | ||||||
6 | of Section 250; | ||||||
7 | (EE) An amount equal to the income from intangible | ||||||
8 | property taken into account for the taxable year (net | ||||||
9 | of the deductions allocable thereto) with respect to | ||||||
10 | transactions with (i) a foreign person who would be a | ||||||
11 | member of the taxpayer's unitary business group but | ||||||
12 | for the fact that the foreign person's business | ||||||
13 | activity outside the United States is 80% or more of | ||||||
14 | that person's total business activity and (ii) for | ||||||
15 | taxable years ending on or after December 31, 2008, to | ||||||
16 | a person who would be a member of the same unitary | ||||||
17 | business group but for the fact that the person is | ||||||
18 | prohibited under Section 1501(a)(27) from being | ||||||
19 | included in the unitary business group because he or | ||||||
20 | she is ordinarily required to apportion business | ||||||
21 | income under different subsections of Section 304, but | ||||||
22 | not to exceed the addition modification required to be | ||||||
23 | made for the same taxable year under Section | ||||||
24 | 203(a)(2)(D-18) for intangible expenses and costs | ||||||
25 | paid, accrued, or incurred, directly or indirectly, to | ||||||
26 | the same foreign person. This subparagraph (EE) is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 250; | ||||||
2 | (FF) An amount equal to any amount awarded to the | ||||||
3 | taxpayer during the taxable year by the Court of | ||||||
4 | Claims under subsection (c) of Section 8 of the Court | ||||||
5 | of Claims Act for time unjustly served in a State | ||||||
6 | prison. This subparagraph (FF) is exempt from the | ||||||
7 | provisions of Section 250; | ||||||
8 | (GG) 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(a)(2)(D-19), 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 | ||||||
14 | or 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 | ||||||
18 | makes the election provided for by this subparagraph | ||||||
19 | (GG), the insurer to which the premiums were paid must | ||||||
20 | add back to income the amount subtracted by the | ||||||
21 | taxpayer pursuant to this subparagraph (GG). This | ||||||
22 | subparagraph (GG) is exempt from the provisions of | ||||||
23 | Section 250; | ||||||
24 | (HH) For taxable years beginning on or after | ||||||
25 | January 1, 2018 and prior to January 1, 2028, a maximum | ||||||
26 | of $10,000 contributed in the taxable year to a |
| |||||||
| |||||||
1 | qualified ABLE account under Section 16.6 of the State | ||||||
2 | Treasurer Act, except that amounts excluded from gross | ||||||
3 | income under Section 529(c)(3)(C)(i) or Section | ||||||
4 | 529A(c)(1)(C) of the Internal Revenue Code shall not | ||||||
5 | be considered moneys contributed under this | ||||||
6 | subparagraph (HH). For purposes of this subparagraph | ||||||
7 | (HH), contributions made by an employer on behalf of | ||||||
8 | an employee, or matching contributions made by an | ||||||
9 | employee, shall be treated as made by the employee; | ||||||
10 | (II) For taxable years that begin on or after | ||||||
11 | January 1, 2021 and begin before January 1, 2026, the | ||||||
12 | amount that is included in the taxpayer's federal | ||||||
13 | adjusted gross income pursuant to Section 61 of the | ||||||
14 | Internal Revenue Code as discharge of indebtedness | ||||||
15 | attributable to student loan forgiveness and that is | ||||||
16 | not excluded from the taxpayer's federal adjusted | ||||||
17 | gross income pursuant to paragraph (5) of subsection | ||||||
18 | (f) of Section 108 of the Internal Revenue Code; and | ||||||
19 | (JJ) For taxable years beginning on or after | ||||||
20 | January 1, 2023, for any cannabis establishment | ||||||
21 | operating in this State and licensed under the | ||||||
22 | Cannabis Regulation and Tax Act or any cannabis | ||||||
23 | cultivation center or medical cannabis dispensing | ||||||
24 | organization operating in this State and licensed | ||||||
25 | under the Compassionate Use of Medical Cannabis | ||||||
26 | Program Act, an amount equal to the deductions that |
| |||||||
| |||||||
1 | were disallowed under Section 280E of the Internal | ||||||
2 | Revenue Code for the taxable year and that would not be | ||||||
3 | added back under this subsection. The provisions of | ||||||
4 | this subparagraph (JJ) are exempt from the provisions | ||||||
5 | of Section 250 ; . | ||||||
6 | (KK) (JJ) To the extent includible in gross income | ||||||
7 | for federal income tax purposes, any amount awarded or | ||||||
8 | paid to the taxpayer as a result of a judgment or | ||||||
9 | settlement for fertility fraud as provided in Section | ||||||
10 | 15 of the Illinois Fertility Fraud Act, donor | ||||||
11 | fertility fraud as provided in Section 20 of the | ||||||
12 | Illinois Fertility Fraud Act, or similar action in | ||||||
13 | another state ; and . | ||||||
14 | (LL) For taxable years beginning on or after | ||||||
15 | January 1, 2025, if the taxpayer is a qualified | ||||||
16 | worker, as defined in the Workforce Development | ||||||
17 | through Charitable Loan Repayment Act, an amount equal | ||||||
18 | to the amount included in the taxpayer's federal | ||||||
19 | adjusted gross income that is attributable to student | ||||||
20 | loan repayment assistance received by the taxpayer | ||||||
21 | during the taxable year from a qualified community | ||||||
22 | foundation under the provisions of the Workforce | ||||||
23 | Development Through Charitable Loan Repayment Act. | ||||||
24 | This subparagraph (LL) is exempt from the | ||||||
25 | provisions of Section 250.
|
| |||||||
| |||||||
1 | (b) Corporations. | ||||||
2 | (1) In general. In the case of a corporation, base | ||||||
3 | income means an amount equal to the taxpayer's taxable | ||||||
4 | income for the taxable year as modified by paragraph (2). | ||||||
5 | (2) Modifications. The taxable income referred to in | ||||||
6 | paragraph (1) shall be modified by adding thereto the sum | ||||||
7 | of the following amounts: | ||||||
8 | (A) An amount equal to all amounts paid or accrued | ||||||
9 | to the taxpayer as interest and all distributions | ||||||
10 | received from regulated investment companies during | ||||||
11 | the taxable year to the extent excluded from gross | ||||||
12 | income in the computation of taxable income; | ||||||
13 | (B) An amount equal to the amount of tax imposed by | ||||||
14 | this Act to the extent deducted from gross income in | ||||||
15 | the computation of taxable income for the taxable | ||||||
16 | year; | ||||||
17 | (C) In the case of a regulated investment company, | ||||||
18 | an amount equal to the excess of (i) the net long-term | ||||||
19 | capital gain for the taxable year, over (ii) the | ||||||
20 | amount of the capital gain dividends designated as | ||||||
21 | such in accordance with Section 852(b)(3)(C) of the | ||||||
22 | Internal Revenue Code and any amount designated under | ||||||
23 | Section 852(b)(3)(D) of the Internal Revenue Code, | ||||||
24 | attributable to the taxable year (this amendatory Act | ||||||
25 | of 1995 (Public Act 89-89) is declarative of existing | ||||||
26 | law and is not a new enactment); |
| |||||||
| |||||||
1 | (D) The amount of any net operating loss deduction | ||||||
2 | taken in arriving at taxable income, other than a net | ||||||
3 | operating loss carried forward from a taxable year | ||||||
4 | ending prior to December 31, 1986; | ||||||
5 | (E) For taxable years in which a net operating | ||||||
6 | loss carryback or carryforward from a taxable year | ||||||
7 | ending prior to December 31, 1986 is an element of | ||||||
8 | taxable income under paragraph (1) of subsection (e) | ||||||
9 | or subparagraph (E) of paragraph (2) of subsection | ||||||
10 | (e), the amount by which addition modifications other | ||||||
11 | than those provided by this subparagraph (E) exceeded | ||||||
12 | subtraction modifications in such earlier taxable | ||||||
13 | year, with the following limitations applied in the | ||||||
14 | order that they are listed: | ||||||
15 | (i) the addition modification relating to the | ||||||
16 | net operating loss carried back or forward to the | ||||||
17 | taxable year from any taxable year ending prior to | ||||||
18 | December 31, 1986 shall be reduced by the amount | ||||||
19 | of addition modification under this subparagraph | ||||||
20 | (E) which related to that net operating loss and | ||||||
21 | which was taken into account in calculating the | ||||||
22 | base income of an earlier taxable year, and | ||||||
23 | (ii) the addition modification relating to the | ||||||
24 | net operating loss carried back or forward to the | ||||||
25 | taxable year from any taxable year ending prior to | ||||||
26 | December 31, 1986 shall not exceed the amount of |
| |||||||
| |||||||
1 | such carryback or carryforward; | ||||||
2 | For taxable years in which there is a net | ||||||
3 | operating loss carryback or carryforward from more | ||||||
4 | than one other taxable year ending prior to December | ||||||
5 | 31, 1986, the addition modification provided in this | ||||||
6 | subparagraph (E) shall be the sum of the amounts | ||||||
7 | computed independently under the preceding provisions | ||||||
8 | of this subparagraph (E) for each such taxable year; | ||||||
9 | (E-5) For taxable years ending after December 31, | ||||||
10 | 1997, an amount equal to any eligible remediation | ||||||
11 | costs that the corporation deducted in computing | ||||||
12 | adjusted gross income and for which the corporation | ||||||
13 | claims a credit under subsection (l) of Section 201; | ||||||
14 | (E-10) For taxable years 2001 and thereafter, an | ||||||
15 | amount equal to the bonus depreciation deduction taken | ||||||
16 | on the taxpayer's federal income tax return for the | ||||||
17 | taxable year under subsection (k) of Section 168 of | ||||||
18 | the Internal Revenue Code; | ||||||
19 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
20 | or otherwise disposes of property for which the | ||||||
21 | taxpayer was required in any taxable year to make an | ||||||
22 | addition modification under subparagraph (E-10), then | ||||||
23 | an amount equal to the aggregate amount of the | ||||||
24 | deductions taken in all taxable years under | ||||||
25 | subparagraph (T) with respect to that property. | ||||||
26 | If the taxpayer continues to own property through |
| |||||||
| |||||||
1 | the last day of the last tax year for which a | ||||||
2 | subtraction is allowed with respect to that property | ||||||
3 | under subparagraph (T) and for which the taxpayer was | ||||||
4 | allowed in any taxable year to make a subtraction | ||||||
5 | modification under subparagraph (T), then an amount | ||||||
6 | equal to that subtraction modification. | ||||||
7 | The taxpayer is required to make the addition | ||||||
8 | modification under this subparagraph only once with | ||||||
9 | respect to any one piece of property; | ||||||
10 | (E-12) An amount equal to the amount otherwise | ||||||
11 | allowed as a deduction in computing base income for | ||||||
12 | interest paid, accrued, or incurred, directly or | ||||||
13 | indirectly, (i) for taxable years ending on or after | ||||||
14 | December 31, 2004, to a foreign person who would be a | ||||||
15 | member of the same unitary business group but for the | ||||||
16 | fact the foreign person's business activity outside | ||||||
17 | the United States is 80% or more of the foreign | ||||||
18 | person's total business activity and (ii) for taxable | ||||||
19 | years ending on or after December 31, 2008, to a person | ||||||
20 | who would be a member of the same unitary business | ||||||
21 | group but for the fact that the person is prohibited | ||||||
22 | under Section 1501(a)(27) from being included in the | ||||||
23 | unitary business group because he or she is ordinarily | ||||||
24 | required to apportion business income under different | ||||||
25 | subsections of Section 304. The addition modification | ||||||
26 | required by this subparagraph shall be reduced to the |
| |||||||
| |||||||
1 | extent that dividends were included in base income of | ||||||
2 | the unitary group for the same taxable year and | ||||||
3 | received by the taxpayer or by a member of the | ||||||
4 | taxpayer's unitary business group (including amounts | ||||||
5 | included in gross income pursuant to Sections 951 | ||||||
6 | through 964 of the Internal Revenue Code and amounts | ||||||
7 | included in gross income under Section 78 of the | ||||||
8 | Internal Revenue Code) with respect to the stock of | ||||||
9 | the same person to whom the interest was paid, | ||||||
10 | accrued, or incurred. | ||||||
11 | This paragraph shall not apply to the following: | ||||||
12 | (i) an item of interest paid, accrued, or | ||||||
13 | incurred, directly or indirectly, to a person who | ||||||
14 | is subject in a foreign country or state, other | ||||||
15 | than a state which requires mandatory unitary | ||||||
16 | reporting, to a tax on or measured by net income | ||||||
17 | with respect to such interest; or | ||||||
18 | (ii) an item of interest paid, accrued, or | ||||||
19 | incurred, directly or indirectly, to a person if | ||||||
20 | the taxpayer can establish, based on a | ||||||
21 | preponderance of the evidence, both of the | ||||||
22 | following: | ||||||
23 | (a) the person, during the same taxable | ||||||
24 | year, paid, accrued, or incurred, the interest | ||||||
25 | to a person that is not a related member, and | ||||||
26 | (b) the transaction giving rise to the |
| |||||||
| |||||||
1 | interest expense between the taxpayer and the | ||||||
2 | person did not have as a principal purpose the | ||||||
3 | avoidance of Illinois income tax, and is paid | ||||||
4 | pursuant to a contract or agreement that | ||||||
5 | reflects an arm's-length interest rate and | ||||||
6 | terms; or | ||||||
7 | (iii) the taxpayer can establish, based on | ||||||
8 | clear and convincing evidence, that the interest | ||||||
9 | paid, accrued, or incurred relates to a contract | ||||||
10 | or agreement entered into at arm's-length rates | ||||||
11 | and terms and the principal purpose for the | ||||||
12 | payment is not federal or Illinois tax avoidance; | ||||||
13 | or | ||||||
14 | (iv) an item of interest paid, accrued, or | ||||||
15 | incurred, directly or indirectly, to a person if | ||||||
16 | the taxpayer establishes by clear and convincing | ||||||
17 | evidence that the adjustments are unreasonable; or | ||||||
18 | if the taxpayer and the Director agree in writing | ||||||
19 | to the application or use of an alternative method | ||||||
20 | of apportionment under Section 304(f). | ||||||
21 | Nothing in this subsection shall preclude the | ||||||
22 | Director from making any other adjustment | ||||||
23 | otherwise allowed under Section 404 of this Act | ||||||
24 | for any tax year beginning after the effective | ||||||
25 | date of this amendment provided such adjustment is | ||||||
26 | made pursuant to regulation adopted by the |
| |||||||
| |||||||
1 | Department and such regulations provide methods | ||||||
2 | and standards by which the Department will utilize | ||||||
3 | its authority under Section 404 of this Act; | ||||||
4 | (E-13) An amount equal to the amount of intangible | ||||||
5 | expenses and costs otherwise allowed as a deduction in | ||||||
6 | computing base income, and that were paid, accrued, or | ||||||
7 | incurred, directly or indirectly, (i) for taxable | ||||||
8 | years ending on or after December 31, 2004, to a | ||||||
9 | foreign person who would be a member of the same | ||||||
10 | unitary business group but for the fact that the | ||||||
11 | foreign person's business activity outside the United | ||||||
12 | States is 80% or more of that person's total business | ||||||
13 | activity and (ii) for taxable years ending on or after | ||||||
14 | December 31, 2008, to a person who would be a member of | ||||||
15 | the same unitary business group but for the fact that | ||||||
16 | the person is prohibited under Section 1501(a)(27) | ||||||
17 | from being included in the unitary business group | ||||||
18 | because he or she is ordinarily required to apportion | ||||||
19 | business income under different subsections of Section | ||||||
20 | 304. The addition modification required by this | ||||||
21 | subparagraph shall be reduced to the extent that | ||||||
22 | dividends were included in base income of the unitary | ||||||
23 | group for the same taxable year and received by the | ||||||
24 | taxpayer or by a member of the taxpayer's unitary | ||||||
25 | business group (including amounts included in gross | ||||||
26 | income pursuant to Sections 951 through 964 of the |
| |||||||
| |||||||
1 | Internal Revenue Code and amounts included in gross | ||||||
2 | income under Section 78 of the Internal Revenue Code) | ||||||
3 | with respect to the stock of the same person to whom | ||||||
4 | the intangible expenses and costs were directly or | ||||||
5 | indirectly paid, incurred, or accrued. The preceding | ||||||
6 | sentence shall not apply to the extent that the same | ||||||
7 | dividends caused a reduction to the addition | ||||||
8 | modification required under Section 203(b)(2)(E-12) of | ||||||
9 | this Act. As used in this subparagraph, the term | ||||||
10 | "intangible expenses and costs" includes (1) expenses, | ||||||
11 | losses, and costs for, or related to, the direct or | ||||||
12 | indirect acquisition, use, maintenance or management, | ||||||
13 | ownership, sale, exchange, or any other disposition of | ||||||
14 | intangible property; (2) losses incurred, directly or | ||||||
15 | indirectly, from factoring transactions or discounting | ||||||
16 | transactions; (3) royalty, patent, technical, and | ||||||
17 | copyright fees; (4) licensing fees; and (5) other | ||||||
18 | similar expenses and costs. For purposes of this | ||||||
19 | subparagraph, "intangible property" includes patents, | ||||||
20 | patent applications, trade names, trademarks, service | ||||||
21 | marks, copyrights, mask works, trade secrets, and | ||||||
22 | similar types of intangible assets. | ||||||
23 | This paragraph shall not apply to the following: | ||||||
24 | (i) any item of intangible expenses or costs | ||||||
25 | paid, accrued, or incurred, directly or | ||||||
26 | indirectly, from a transaction with 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 item; or | ||||||
5 | (ii) any item of intangible expense or cost | ||||||
6 | paid, accrued, or incurred, directly or | ||||||
7 | indirectly, if the taxpayer can establish, based | ||||||
8 | on a preponderance of the evidence, both of the | ||||||
9 | following: | ||||||
10 | (a) the person during the same taxable | ||||||
11 | year paid, accrued, or incurred, the | ||||||
12 | intangible expense or cost to a person that is | ||||||
13 | not a related member, and | ||||||
14 | (b) the transaction giving rise to the | ||||||
15 | intangible expense or cost between the | ||||||
16 | taxpayer and the person did not have as a | ||||||
17 | principal purpose the avoidance of Illinois | ||||||
18 | income tax, and is paid pursuant to a contract | ||||||
19 | or agreement that reflects arm's-length terms; | ||||||
20 | or | ||||||
21 | (iii) any item of intangible expense or cost | ||||||
22 | paid, accrued, or incurred, directly or | ||||||
23 | indirectly, from a transaction with a person if | ||||||
24 | the taxpayer establishes by clear and convincing | ||||||
25 | evidence, that the adjustments are unreasonable; | ||||||
26 | or if the taxpayer and the Director agree in |
| |||||||
| |||||||
1 | writing to the application or use of an | ||||||
2 | alternative method of apportionment under Section | ||||||
3 | 304(f); | ||||||
4 | Nothing in this subsection shall preclude the | ||||||
5 | Director from making any other adjustment | ||||||
6 | otherwise allowed under Section 404 of this Act | ||||||
7 | for any tax year beginning after the effective | ||||||
8 | date of this amendment provided such adjustment is | ||||||
9 | made pursuant to regulation adopted by the | ||||||
10 | Department and such regulations provide methods | ||||||
11 | and standards by which the Department will utilize | ||||||
12 | its authority under Section 404 of this Act; | ||||||
13 | (E-14) For taxable years ending on or after | ||||||
14 | December 31, 2008, an amount equal to the amount of | ||||||
15 | insurance premium expenses and costs otherwise allowed | ||||||
16 | as a deduction in computing base income, and that were | ||||||
17 | paid, accrued, or incurred, directly or indirectly, to | ||||||
18 | a person who would be a member of the same unitary | ||||||
19 | business group but for the fact that the person is | ||||||
20 | prohibited under Section 1501(a)(27) from being | ||||||
21 | included in the unitary business group because he or | ||||||
22 | she is ordinarily required to apportion business | ||||||
23 | income under different subsections of Section 304. The | ||||||
24 | addition modification required by this subparagraph | ||||||
25 | shall be reduced to the extent that dividends were | ||||||
26 | included in base income of the unitary group for the |
| |||||||
| |||||||
1 | same taxable year and received by the taxpayer or by a | ||||||
2 | member of the taxpayer's unitary business group | ||||||
3 | (including amounts included in gross income under | ||||||
4 | Sections 951 through 964 of the Internal Revenue Code | ||||||
5 | and amounts included in gross income under Section 78 | ||||||
6 | of the Internal Revenue Code) with respect to the | ||||||
7 | stock of the same person to whom the premiums and costs | ||||||
8 | were directly or indirectly paid, incurred, or | ||||||
9 | accrued. The preceding sentence does not apply to the | ||||||
10 | extent that the same dividends caused a reduction to | ||||||
11 | the addition modification required under Section | ||||||
12 | 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this | ||||||
13 | Act; | ||||||
14 | (E-15) For taxable years beginning after December | ||||||
15 | 31, 2008, any deduction for dividends paid by a | ||||||
16 | captive real estate investment trust that is allowed | ||||||
17 | to a real estate investment trust under Section | ||||||
18 | 857(b)(2)(B) of the Internal Revenue Code for | ||||||
19 | dividends paid; | ||||||
20 | (E-16) An amount equal to the credit allowable to | ||||||
21 | the taxpayer under Section 218(a) of this Act, | ||||||
22 | determined without regard to Section 218(c) of this | ||||||
23 | Act; | ||||||
24 | (E-17) For taxable years ending on or after | ||||||
25 | December 31, 2017, an amount equal to the deduction | ||||||
26 | allowed under Section 199 of the Internal Revenue Code |
| |||||||
| |||||||
1 | for the taxable year; | ||||||
2 | (E-18) for taxable years beginning after December | ||||||
3 | 31, 2018, an amount equal to the deduction allowed | ||||||
4 | under Section 250(a)(1)(A) of the Internal Revenue | ||||||
5 | Code for the taxable year; | ||||||
6 | (E-19) for taxable years ending on or after June | ||||||
7 | 30, 2021, an amount equal to the deduction allowed | ||||||
8 | under Section 250(a)(1)(B)(i) of the Internal Revenue | ||||||
9 | Code for the taxable year; | ||||||
10 | (E-20) for taxable years ending on or after June | ||||||
11 | 30, 2021, an amount equal to the deduction allowed | ||||||
12 | under Sections 243(e) and 245A(a) of the Internal | ||||||
13 | Revenue Code for the taxable year. | ||||||
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 |
| |||||||
| |||||||
1 | such total which are exempt from taxation by this | ||||||
2 | State either by reason of its statutes or Constitution | ||||||
3 | or by reason of the Constitution, treaties or statutes | ||||||
4 | of the 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 | ||||||
8 | net 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 | ||||||
16 | the 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 | ||||||
21 | a 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) | ||||||
12 | investment credit property which secures the loan or | ||||||
13 | loans, using for this purpose the original basis of | ||||||
14 | such property on the date that it was placed in service | ||||||
15 | in the River Edge Redevelopment Zone. The subtraction | ||||||
16 | modification available to the taxpayer in any year | ||||||
17 | 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. This | ||||||
21 | subparagraph (M) is exempt from the provisions of | ||||||
22 | Section 250; | ||||||
23 | (M-1) For any taxpayer that is a financial | ||||||
24 | organization within the meaning of Section 304(c) of | ||||||
25 | this Act, an amount included in such total as interest | ||||||
26 | income from a loan or loans made by such taxpayer to a |
| |||||||
| |||||||
1 | borrower, to the extent that such a loan is secured by | ||||||
2 | property which is eligible for the High Impact | ||||||
3 | Business Investment Credit. To determine the portion | ||||||
4 | of a loan or loans that is secured by property eligible | ||||||
5 | for a Section 201(h) investment credit to the | ||||||
6 | borrower, the entire principal amount of the loan or | ||||||
7 | loans between the taxpayer and the borrower should be | ||||||
8 | divided into the basis of the Section 201(h) | ||||||
9 | investment credit property which secures the loan or | ||||||
10 | loans, using for this purpose the original basis of | ||||||
11 | such property on the date that it was placed in service | ||||||
12 | in a federally designated Foreign Trade Zone or | ||||||
13 | Sub-Zone located in Illinois. No taxpayer that is | ||||||
14 | eligible for the deduction provided in subparagraph | ||||||
15 | (M) of paragraph (2) of this subsection shall be | ||||||
16 | eligible for the deduction provided under this | ||||||
17 | subparagraph (M-1). The subtraction modification | ||||||
18 | available to taxpayers in any year under this | ||||||
19 | subsection shall be that portion of the total interest | ||||||
20 | paid by the borrower with respect to such loan | ||||||
21 | attributable to the eligible property as calculated | ||||||
22 | under the previous sentence; | ||||||
23 | (N) Two times any contribution made during the | ||||||
24 | taxable year to a designated zone organization to the | ||||||
25 | extent that the contribution (i) qualifies as a | ||||||
26 | charitable contribution under subsection (c) of |
| |||||||
| |||||||
1 | Section 170 of the Internal Revenue Code and (ii) | ||||||
2 | must, by its terms, be used for a project approved by | ||||||
3 | the Department of Commerce and Economic Opportunity | ||||||
4 | under Section 11 of the Illinois Enterprise Zone Act | ||||||
5 | or under Section 10-10 of the River Edge Redevelopment | ||||||
6 | Zone Act. This subparagraph (N) is exempt from the | ||||||
7 | provisions of Section 250; | ||||||
8 | (O) An amount equal to: (i) 85% for taxable years | ||||||
9 | ending on or before December 31, 1992, or, a | ||||||
10 | percentage equal to the percentage allowable under | ||||||
11 | Section 243(a)(1) of the Internal Revenue Code of 1986 | ||||||
12 | for taxable years ending after December 31, 1992, of | ||||||
13 | the amount by which dividends included in taxable | ||||||
14 | income and received from a corporation that is not | ||||||
15 | created or organized under the laws of the United | ||||||
16 | States or any state or political subdivision thereof, | ||||||
17 | including, for taxable years ending on or after | ||||||
18 | December 31, 1988, dividends received or deemed | ||||||
19 | received or paid or deemed paid under Sections 951 | ||||||
20 | through 965 of the Internal Revenue Code, exceed the | ||||||
21 | amount of the modification provided under subparagraph | ||||||
22 | (G) of paragraph (2) of this subsection (b) which is | ||||||
23 | related to such dividends, and including, for taxable | ||||||
24 | years ending on or after December 31, 2008, dividends | ||||||
25 | received from a captive real estate investment trust; | ||||||
26 | plus (ii) 100% of the amount by which dividends, |
| |||||||
| |||||||
1 | included in taxable income and received, including, | ||||||
2 | for taxable years ending on or after December 31, | ||||||
3 | 1988, dividends received or deemed received or paid or | ||||||
4 | deemed paid under Sections 951 through 964 of the | ||||||
5 | Internal Revenue Code and including, for taxable years | ||||||
6 | ending on or after December 31, 2008, dividends | ||||||
7 | received from a captive real estate investment trust, | ||||||
8 | from any such corporation specified in clause (i) that | ||||||
9 | would but for the provisions of Section 1504(b)(3) of | ||||||
10 | the Internal Revenue Code be treated as a member of the | ||||||
11 | affiliated group which includes the dividend | ||||||
12 | recipient, exceed the amount of the modification | ||||||
13 | provided under subparagraph (G) of paragraph (2) of | ||||||
14 | this subsection (b) which is related to such | ||||||
15 | dividends. For taxable years ending on or after June | ||||||
16 | 30, 2021, (i) for purposes of this subparagraph, the | ||||||
17 | term "dividend" does not include any amount treated as | ||||||
18 | a dividend under Section 1248 of the Internal Revenue | ||||||
19 | Code, and (ii) this subparagraph shall not apply to | ||||||
20 | dividends for which a deduction is allowed under | ||||||
21 | Section 245(a) of the Internal Revenue Code. This | ||||||
22 | subparagraph (O) is exempt from the provisions of | ||||||
23 | Section 250 of this Act; | ||||||
24 | (P) An amount equal to any contribution made to a | ||||||
25 | job training project established pursuant to the Tax | ||||||
26 | Increment Allocation Redevelopment Act; |
| |||||||
| |||||||
1 | (Q) An amount equal to the amount of the deduction | ||||||
2 | used to compute the federal income tax credit for | ||||||
3 | restoration of substantial amounts held under claim of | ||||||
4 | right for the taxable year pursuant to Section 1341 of | ||||||
5 | the Internal Revenue Code; | ||||||
6 | (R) On and after July 20, 1999, in the case of an | ||||||
7 | attorney-in-fact with respect to whom an interinsurer | ||||||
8 | or a reciprocal insurer has made the election under | ||||||
9 | Section 835 of the Internal Revenue Code, 26 U.S.C. | ||||||
10 | 835, an amount equal to the excess, if any, of the | ||||||
11 | amounts paid or incurred by that interinsurer or | ||||||
12 | reciprocal insurer in the taxable year to the | ||||||
13 | attorney-in-fact over the deduction allowed to that | ||||||
14 | interinsurer or reciprocal insurer with respect to the | ||||||
15 | attorney-in-fact under Section 835(b) of the Internal | ||||||
16 | Revenue Code for the taxable year; the provisions of | ||||||
17 | this subparagraph are exempt from the provisions of | ||||||
18 | Section 250; | ||||||
19 | (S) For taxable years ending on or after December | ||||||
20 | 31, 1997, in the case of a Subchapter S corporation, an | ||||||
21 | amount equal to all amounts of income allocable to a | ||||||
22 | shareholder subject to the Personal Property Tax | ||||||
23 | Replacement Income Tax imposed by subsections (c) and | ||||||
24 | (d) of Section 201 of this Act, including amounts | ||||||
25 | allocable to organizations exempt from federal income | ||||||
26 | tax by reason of Section 501(a) of the Internal |
| |||||||
| |||||||
1 | Revenue Code. This subparagraph (S) is exempt from the | ||||||
2 | provisions of Section 250; | ||||||
3 | (T) For taxable years 2001 and thereafter, for the | ||||||
4 | taxable year in which the bonus depreciation deduction | ||||||
5 | is taken on the taxpayer's federal income tax return | ||||||
6 | under subsection (k) of Section 168 of the Internal | ||||||
7 | Revenue Code and for each applicable taxable year | ||||||
8 | thereafter, an amount equal to "x", where: | ||||||
9 | (1) "y" equals the amount of the depreciation | ||||||
10 | deduction taken for the taxable year on the | ||||||
11 | taxpayer's federal income tax return on property | ||||||
12 | for which the bonus depreciation deduction was | ||||||
13 | taken in any year under subsection (k) of Section | ||||||
14 | 168 of the Internal Revenue Code, but not | ||||||
15 | including the bonus depreciation deduction; | ||||||
16 | (2) for taxable years ending on or before | ||||||
17 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
18 | and then divided by 70 (or "y" multiplied by | ||||||
19 | 0.429); and | ||||||
20 | (3) for taxable years ending after December | ||||||
21 | 31, 2005: | ||||||
22 | (i) for property on which a bonus | ||||||
23 | depreciation deduction of 30% of the adjusted | ||||||
24 | basis was taken, "x" equals "y" multiplied by | ||||||
25 | 30 and then divided by 70 (or "y" multiplied | ||||||
26 | by 0.429); |
| |||||||
| |||||||
1 | (ii) for property on which a bonus | ||||||
2 | depreciation deduction of 50% of the adjusted | ||||||
3 | basis was taken, "x" equals "y" multiplied by | ||||||
4 | 1.0; | ||||||
5 | (iii) for property on which a bonus | ||||||
6 | depreciation deduction of 100% of the adjusted | ||||||
7 | basis was taken in a taxable year ending on or | ||||||
8 | after December 31, 2021, "x" equals the | ||||||
9 | depreciation deduction that would be allowed | ||||||
10 | on that property if the taxpayer had made the | ||||||
11 | election under Section 168(k)(7) of the | ||||||
12 | Internal Revenue Code to not claim bonus | ||||||
13 | depreciation on that property; and | ||||||
14 | (iv) for property on which a bonus | ||||||
15 | depreciation deduction of a percentage other | ||||||
16 | than 30%, 50% or 100% of the adjusted basis | ||||||
17 | was taken in a taxable year ending on or after | ||||||
18 | December 31, 2021, "x" equals "y" multiplied | ||||||
19 | by 100 times the percentage bonus depreciation | ||||||
20 | on the property (that is, 100(bonus%)) and | ||||||
21 | then divided by 100 times 1 minus the | ||||||
22 | percentage bonus depreciation on the property | ||||||
23 | (that is, 100(1-bonus%)). | ||||||
24 | The aggregate amount deducted under this | ||||||
25 | subparagraph in all taxable years for any one piece of | ||||||
26 | property may not exceed the amount of the bonus |
| |||||||
| |||||||
1 | depreciation deduction taken on that property on the | ||||||
2 | taxpayer's federal income tax return under subsection | ||||||
3 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
4 | subparagraph (T) is exempt from the provisions of | ||||||
5 | Section 250; | ||||||
6 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
7 | otherwise disposes of property for which the taxpayer | ||||||
8 | was required in any taxable year to make an addition | ||||||
9 | modification under subparagraph (E-10), then an amount | ||||||
10 | equal to that addition modification. | ||||||
11 | If the taxpayer continues to own property through | ||||||
12 | the last day of the last tax year for which a | ||||||
13 | subtraction is allowed with respect to that property | ||||||
14 | under subparagraph (T) and for which the taxpayer was | ||||||
15 | required in any taxable year to make an addition | ||||||
16 | modification under subparagraph (E-10), then an amount | ||||||
17 | equal to that addition modification. | ||||||
18 | The taxpayer is allowed to take the deduction | ||||||
19 | under this subparagraph only once with respect to any | ||||||
20 | one piece of property. | ||||||
21 | This subparagraph (U) is exempt from the | ||||||
22 | provisions of Section 250; | ||||||
23 | (V) The amount of: (i) any interest income (net of | ||||||
24 | the deductions allocable thereto) taken into account | ||||||
25 | for the taxable year with respect to a transaction | ||||||
26 | with a taxpayer that is required to make an addition |
| |||||||
| |||||||
1 | modification with respect to such transaction under | ||||||
2 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
3 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
4 | the amount of such addition modification, (ii) any | ||||||
5 | income from intangible property (net of the deductions | ||||||
6 | allocable thereto) taken into account for the taxable | ||||||
7 | year with respect to a transaction with a taxpayer | ||||||
8 | that is required to make an addition modification with | ||||||
9 | respect to such transaction under Section | ||||||
10 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
11 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
12 | addition modification, and (iii) any insurance premium | ||||||
13 | income (net of deductions allocable thereto) taken | ||||||
14 | into account for the taxable year with respect to a | ||||||
15 | transaction with a taxpayer that is required to make | ||||||
16 | an addition modification with respect to such | ||||||
17 | transaction under Section 203(a)(2)(D-19), Section | ||||||
18 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
19 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
20 | addition modification. This subparagraph (V) is exempt | ||||||
21 | from the provisions of Section 250; | ||||||
22 | (W) An amount equal to the interest income taken | ||||||
23 | into account for the taxable year (net of the | ||||||
24 | deductions allocable thereto) with respect to | ||||||
25 | transactions with (i) a foreign person who would be a | ||||||
26 | member of the taxpayer's unitary business group but |
| |||||||
| |||||||
1 | for the fact that the foreign person's business | ||||||
2 | activity outside the United States is 80% or more of | ||||||
3 | that person's total business activity and (ii) for | ||||||
4 | taxable years ending on or after December 31, 2008, to | ||||||
5 | a person who would be a member of the same unitary | ||||||
6 | business group but for the fact that the person is | ||||||
7 | prohibited under Section 1501(a)(27) from being | ||||||
8 | included in the unitary business group because he or | ||||||
9 | she is ordinarily required to apportion business | ||||||
10 | income under different subsections of Section 304, but | ||||||
11 | not to exceed the addition modification required to be | ||||||
12 | made for the same taxable year under Section | ||||||
13 | 203(b)(2)(E-12) for interest paid, accrued, or | ||||||
14 | incurred, directly or indirectly, to the same person. | ||||||
15 | This subparagraph (W) is exempt from the provisions of | ||||||
16 | Section 250; | ||||||
17 | (X) An amount equal to the income from intangible | ||||||
18 | property taken into account for the taxable year (net | ||||||
19 | of the deductions allocable thereto) with respect to | ||||||
20 | transactions with (i) a foreign person who would be a | ||||||
21 | member of the taxpayer's unitary business group but | ||||||
22 | for the fact that the foreign person's business | ||||||
23 | activity outside the United States is 80% or more of | ||||||
24 | that person's total business activity and (ii) for | ||||||
25 | taxable years ending on or after December 31, 2008, to | ||||||
26 | a person who would be a member of the same unitary |
| |||||||
| |||||||
1 | business group but for the fact that the person is | ||||||
2 | prohibited under Section 1501(a)(27) from being | ||||||
3 | included in the unitary business group because he or | ||||||
4 | she is ordinarily required to apportion business | ||||||
5 | income under different subsections of Section 304, but | ||||||
6 | not to exceed the addition modification required to be | ||||||
7 | made for the same taxable year under Section | ||||||
8 | 203(b)(2)(E-13) for intangible expenses and costs | ||||||
9 | paid, accrued, or incurred, directly or indirectly, to | ||||||
10 | the same foreign person. This subparagraph (X) is | ||||||
11 | exempt from the provisions of Section 250; | ||||||
12 | (Y) For taxable years ending on or after December | ||||||
13 | 31, 2011, in the case of a taxpayer who was required to | ||||||
14 | add back any insurance premiums under Section | ||||||
15 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
16 | that part of a reimbursement received from the | ||||||
17 | insurance company equal to the amount of the expense | ||||||
18 | or loss (including expenses incurred by the insurance | ||||||
19 | company) that would have been taken into account as a | ||||||
20 | deduction for federal income tax purposes if the | ||||||
21 | expense or loss had been uninsured. If a taxpayer | ||||||
22 | makes the election provided for by this subparagraph | ||||||
23 | (Y), the insurer to which the premiums were paid must | ||||||
24 | add back to income the amount subtracted by the | ||||||
25 | taxpayer pursuant to this subparagraph (Y). This | ||||||
26 | subparagraph (Y) is exempt from the provisions of |
| |||||||
| |||||||
1 | Section 250; | ||||||
2 | (Z) The difference between the nondeductible | ||||||
3 | controlled foreign corporation dividends under Section | ||||||
4 | 965(e)(3) of the Internal Revenue Code over the | ||||||
5 | taxable income of the taxpayer, computed without | ||||||
6 | regard to Section 965(e)(2)(A) of the Internal Revenue | ||||||
7 | Code, and without regard to any net operating loss | ||||||
8 | deduction. This subparagraph (Z) is exempt from the | ||||||
9 | provisions of Section 250; and | ||||||
10 | (AA) For taxable years beginning on or after | ||||||
11 | January 1, 2023, for any cannabis establishment | ||||||
12 | operating in this State and licensed under the | ||||||
13 | Cannabis Regulation and Tax Act or any cannabis | ||||||
14 | cultivation center or medical cannabis dispensing | ||||||
15 | organization operating in this State and licensed | ||||||
16 | under the Compassionate Use of Medical Cannabis | ||||||
17 | Program Act, an amount equal to the deductions that | ||||||
18 | were disallowed under Section 280E of the Internal | ||||||
19 | Revenue Code for the taxable year and that would not be | ||||||
20 | added back under this subsection. The provisions of | ||||||
21 | this subparagraph (AA) are exempt from the provisions | ||||||
22 | of Section 250. | ||||||
23 | (3) Special rule. For purposes of paragraph (2)(A), | ||||||
24 | "gross income" in the case of a life insurance company, | ||||||
25 | for tax years ending on and after December 31, 1994, and | ||||||
26 | prior to December 31, 2011, shall mean the gross |
| |||||||
| |||||||
1 | investment income for the taxable year and, for tax years | ||||||
2 | ending on or after December 31, 2011, shall mean all | ||||||
3 | amounts included in life insurance gross income under | ||||||
4 | Section 803(a)(3) of the Internal Revenue Code.
| ||||||
5 | (c) Trusts and estates. | ||||||
6 | (1) In general. In the case of a trust or estate, base | ||||||
7 | income means an amount equal to the taxpayer's taxable | ||||||
8 | income for the taxable year as modified by paragraph (2). | ||||||
9 | (2) Modifications. Subject to the provisions of | ||||||
10 | paragraph (3), the taxable income referred to in paragraph | ||||||
11 | (1) shall be modified by adding thereto the sum of the | ||||||
12 | following amounts: | ||||||
13 | (A) An amount equal to all amounts paid or accrued | ||||||
14 | to the taxpayer as interest or dividends during the | ||||||
15 | taxable year to the extent excluded from gross income | ||||||
16 | in the computation of taxable income; | ||||||
17 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
18 | trust which, under its governing instrument, is | ||||||
19 | required to distribute all of its income currently, | ||||||
20 | $300; and (iii) any other trust, $100, but in each such | ||||||
21 | case, only to the extent such amount was deducted in | ||||||
22 | the computation of taxable income; | ||||||
23 | (C) An amount equal to the amount of tax imposed by | ||||||
24 | this Act to the extent deducted from gross income in | ||||||
25 | the computation of taxable income for the taxable |
| |||||||
| |||||||
1 | year; | ||||||
2 | (D) The amount of any net operating loss deduction | ||||||
3 | taken in arriving at taxable income, other than a net | ||||||
4 | operating loss carried forward from a taxable year | ||||||
5 | ending prior to December 31, 1986; | ||||||
6 | (E) For taxable years in which a net operating | ||||||
7 | loss carryback or carryforward from a taxable year | ||||||
8 | ending prior to December 31, 1986 is an element of | ||||||
9 | taxable income under paragraph (1) of subsection (e) | ||||||
10 | or subparagraph (E) of paragraph (2) of subsection | ||||||
11 | (e), the amount by which addition modifications other | ||||||
12 | than those provided by this subparagraph (E) exceeded | ||||||
13 | subtraction modifications in such taxable year, with | ||||||
14 | the following limitations applied in the order that | ||||||
15 | they are listed: | ||||||
16 | (i) the addition modification relating to the | ||||||
17 | net operating loss carried back or forward to the | ||||||
18 | taxable year from any taxable year ending prior to | ||||||
19 | December 31, 1986 shall be reduced by the amount | ||||||
20 | of addition modification under this subparagraph | ||||||
21 | (E) which related to that net operating loss and | ||||||
22 | which was taken into account in calculating the | ||||||
23 | base income of an earlier taxable year, and | ||||||
24 | (ii) the addition modification relating to the | ||||||
25 | net operating loss carried back or forward to the | ||||||
26 | taxable year from any taxable year ending prior to |
| |||||||
| |||||||
1 | December 31, 1986 shall not exceed the amount of | ||||||
2 | such carryback or carryforward; | ||||||
3 | For taxable years in which there is a net | ||||||
4 | operating loss carryback or carryforward from more | ||||||
5 | than one other taxable year ending prior to December | ||||||
6 | 31, 1986, the addition modification provided in this | ||||||
7 | subparagraph (E) shall be the sum of the amounts | ||||||
8 | computed independently under the preceding provisions | ||||||
9 | of this subparagraph (E) for each such taxable year; | ||||||
10 | (F) For taxable years ending on or after January | ||||||
11 | 1, 1989, an amount equal to the tax deducted pursuant | ||||||
12 | to Section 164 of the Internal Revenue Code if the | ||||||
13 | trust or estate is claiming the same tax for purposes | ||||||
14 | of the Illinois foreign tax credit under Section 601 | ||||||
15 | of this Act; | ||||||
16 | (G) An amount equal to the amount of the capital | ||||||
17 | gain deduction allowable under the Internal Revenue | ||||||
18 | Code, to the extent deducted from gross income in the | ||||||
19 | computation of taxable income; | ||||||
20 | (G-5) For taxable years ending after December 31, | ||||||
21 | 1997, an amount equal to any eligible remediation | ||||||
22 | costs that the trust or estate deducted in computing | ||||||
23 | adjusted gross income and for which the trust or | ||||||
24 | estate claims a credit under subsection (l) of Section | ||||||
25 | 201; | ||||||
26 | (G-10) For taxable years 2001 and thereafter, an |
| |||||||
| |||||||
1 | amount equal to the bonus depreciation deduction taken | ||||||
2 | on the taxpayer's federal income tax return for the | ||||||
3 | taxable year under subsection (k) of Section 168 of | ||||||
4 | the Internal Revenue Code; and | ||||||
5 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
6 | or otherwise disposes of property for which the | ||||||
7 | taxpayer was required in any taxable year to make an | ||||||
8 | addition modification under subparagraph (G-10), then | ||||||
9 | an amount equal to the aggregate amount of the | ||||||
10 | deductions taken in all taxable years under | ||||||
11 | subparagraph (R) with respect to that property. | ||||||
12 | If the taxpayer continues to own property through | ||||||
13 | the last day of the last tax year for which a | ||||||
14 | subtraction is allowed with respect to that property | ||||||
15 | under subparagraph (R) and for which the taxpayer was | ||||||
16 | allowed in any taxable year to make a subtraction | ||||||
17 | modification under subparagraph (R), then an amount | ||||||
18 | equal to that subtraction modification. | ||||||
19 | The taxpayer is required to make the addition | ||||||
20 | modification under this subparagraph only once with | ||||||
21 | respect to any one piece of property; | ||||||
22 | (G-12) An amount equal to the amount otherwise | ||||||
23 | allowed as a deduction in computing base income for | ||||||
24 | interest paid, accrued, or incurred, directly or | ||||||
25 | indirectly, (i) for taxable years ending on or after | ||||||
26 | December 31, 2004, to a foreign person who would be a |
| |||||||
| |||||||
1 | member of the same unitary business group but for the | ||||||
2 | fact that the foreign person's business activity | ||||||
3 | outside the United States is 80% or more of the foreign | ||||||
4 | person's total business activity and (ii) for taxable | ||||||
5 | years ending on or after December 31, 2008, to a person | ||||||
6 | who would be a member of the same unitary business | ||||||
7 | group but for the fact that the person is prohibited | ||||||
8 | under Section 1501(a)(27) from being included in the | ||||||
9 | unitary business group because he or she is ordinarily | ||||||
10 | required to apportion business income under different | ||||||
11 | subsections of Section 304. The addition modification | ||||||
12 | required by this subparagraph shall be reduced to the | ||||||
13 | extent that dividends were included in base income of | ||||||
14 | the unitary group for the same taxable year and | ||||||
15 | received by the taxpayer or by a member of the | ||||||
16 | taxpayer's unitary business group (including amounts | ||||||
17 | included in gross income pursuant to Sections 951 | ||||||
18 | through 964 of the Internal Revenue Code and amounts | ||||||
19 | included in gross income under Section 78 of the | ||||||
20 | Internal Revenue Code) with respect to the stock of | ||||||
21 | the same person to whom the interest was paid, | ||||||
22 | accrued, or incurred. | ||||||
23 | This paragraph shall not apply to the following: | ||||||
24 | (i) an item of interest paid, accrued, or | ||||||
25 | incurred, directly or indirectly, to a person who | ||||||
26 | is subject in a foreign country or state, other |
| |||||||
| |||||||
1 | than a state which requires mandatory unitary | ||||||
2 | reporting, to a tax on or measured by net income | ||||||
3 | with respect to such interest; or | ||||||
4 | (ii) an item of interest paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to a person if | ||||||
6 | the taxpayer can establish, based on a | ||||||
7 | preponderance of the evidence, both of the | ||||||
8 | following: | ||||||
9 | (a) the person, during the same taxable | ||||||
10 | year, paid, accrued, or incurred, the interest | ||||||
11 | to a person that is not a related member, and | ||||||
12 | (b) the transaction giving rise to the | ||||||
13 | interest expense between the taxpayer and the | ||||||
14 | person did not have as a principal purpose the | ||||||
15 | avoidance of Illinois income tax, and is paid | ||||||
16 | pursuant to a contract or agreement that | ||||||
17 | reflects an arm's-length interest rate and | ||||||
18 | terms; or | ||||||
19 | (iii) the taxpayer can establish, based on | ||||||
20 | clear and convincing evidence, that the interest | ||||||
21 | paid, accrued, or incurred relates to a contract | ||||||
22 | or agreement entered into at arm's-length rates | ||||||
23 | and terms and the principal purpose for the | ||||||
24 | payment is not federal or Illinois tax avoidance; | ||||||
25 | 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 | ||||||
10 | for any tax year beginning after the effective | ||||||
11 | date of this amendment provided such adjustment is | ||||||
12 | made pursuant to regulation adopted by the | ||||||
13 | Department and such regulations provide methods | ||||||
14 | and standards by which the Department will utilize | ||||||
15 | its authority 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 | ||||||
13 | is subject in a foreign country or state, other | ||||||
14 | than a state which requires mandatory unitary | ||||||
15 | reporting, to a tax on or measured by net income | ||||||
16 | with respect 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 | ||||||
10 | the 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 | ||||||
14 | alternative method of apportionment under Section | ||||||
15 | 304(f); | ||||||
16 | Nothing in this subsection shall preclude the | ||||||
17 | Director from making any other adjustment | ||||||
18 | otherwise allowed under Section 404 of this Act | ||||||
19 | for any tax year beginning after the effective | ||||||
20 | date of this amendment provided such adjustment is | ||||||
21 | made pursuant to regulation adopted by the | ||||||
22 | Department and such regulations provide methods | ||||||
23 | and standards by which the Department will utilize | ||||||
24 | its authority under Section 404 of this Act; | ||||||
25 | (G-14) For taxable years ending on or after | ||||||
26 | December 31, 2008, an amount equal to the amount of |
| |||||||
| |||||||
1 | insurance premium expenses and costs otherwise allowed | ||||||
2 | as a deduction in computing base income, and that were | ||||||
3 | paid, accrued, or incurred, directly or indirectly, to | ||||||
4 | a person who would be a member of the same unitary | ||||||
5 | business group but for the fact that the person is | ||||||
6 | prohibited under Section 1501(a)(27) from being | ||||||
7 | included in the unitary business group because he or | ||||||
8 | she is ordinarily required to apportion business | ||||||
9 | income under different subsections of Section 304. The | ||||||
10 | addition modification required by this subparagraph | ||||||
11 | shall be reduced to the extent that dividends were | ||||||
12 | included in base income of the unitary group for the | ||||||
13 | same taxable year and received by the taxpayer or by a | ||||||
14 | member of the taxpayer's unitary business group | ||||||
15 | (including amounts included in gross income under | ||||||
16 | Sections 951 through 964 of the Internal Revenue Code | ||||||
17 | and amounts included in gross income under Section 78 | ||||||
18 | of the Internal Revenue Code) with respect to the | ||||||
19 | stock of the same person to whom the premiums and costs | ||||||
20 | were directly or indirectly paid, incurred, or | ||||||
21 | accrued. The preceding sentence does not apply to the | ||||||
22 | extent that the same dividends caused a reduction to | ||||||
23 | the addition modification required under Section | ||||||
24 | 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this | ||||||
25 | Act; | ||||||
26 | (G-15) An amount equal to the credit allowable to |
| |||||||
| |||||||
1 | the taxpayer under Section 218(a) of this Act, | ||||||
2 | determined without regard to Section 218(c) of this | ||||||
3 | Act; | ||||||
4 | (G-16) For taxable years ending on or after | ||||||
5 | December 31, 2017, an amount equal to the deduction | ||||||
6 | allowed under Section 199 of the Internal Revenue Code | ||||||
7 | for the taxable year; | ||||||
8 | and by deducting from the total so obtained the sum of the | ||||||
9 | following amounts: | ||||||
10 | (H) An amount equal to all amounts included in | ||||||
11 | such total pursuant to the provisions of Sections | ||||||
12 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408 | ||||||
13 | of the Internal Revenue Code or included in such total | ||||||
14 | as distributions under the provisions of any | ||||||
15 | retirement or disability plan for employees of any | ||||||
16 | governmental agency or unit, or retirement payments to | ||||||
17 | retired partners, which payments are excluded in | ||||||
18 | computing net earnings from self employment by Section | ||||||
19 | 1402 of the Internal Revenue Code and regulations | ||||||
20 | adopted pursuant thereto; | ||||||
21 | (I) The valuation limitation amount; | ||||||
22 | (J) 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 | (K) An amount equal to all amounts included in | ||||||
26 | taxable income as modified by subparagraphs (A), (B), |
| |||||||
| |||||||
1 | (C), (D), (E), (F) and (G) which are exempt from | ||||||
2 | taxation by this State either by reason of its | ||||||
3 | statutes or Constitution or by reason of the | ||||||
4 | Constitution, treaties or statutes of the United | ||||||
5 | States; provided that, in the case of any statute of | ||||||
6 | this State that exempts income derived from bonds or | ||||||
7 | other obligations from the tax imposed under this Act, | ||||||
8 | the amount exempted shall be the interest net of bond | ||||||
9 | premium amortization; | ||||||
10 | (L) With the exception of any amounts subtracted | ||||||
11 | under subparagraph (K), an amount equal to the sum of | ||||||
12 | all amounts disallowed as deductions by (i) Sections | ||||||
13 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
14 | and all amounts of expenses allocable to interest and | ||||||
15 | disallowed as deductions by Section 265(a)(1) of the | ||||||
16 | Internal Revenue Code; and (ii) for taxable years | ||||||
17 | ending on or after August 13, 1999, Sections | ||||||
18 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
19 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
20 | ending on or after December 31, 2011, Section | ||||||
21 | 45G(e)(3) of the Internal Revenue Code and, for | ||||||
22 | taxable years ending on or after December 31, 2008, | ||||||
23 | any amount included in gross income under Section 87 | ||||||
24 | of the Internal Revenue Code; the provisions of this | ||||||
25 | subparagraph are exempt from the provisions of Section | ||||||
26 | 250; |
| |||||||
| |||||||
1 | (M) An amount equal to those dividends included in | ||||||
2 | such total which were paid by a corporation which | ||||||
3 | conducts business operations in a River Edge | ||||||
4 | Redevelopment Zone or zones created under the River | ||||||
5 | Edge Redevelopment Zone Act and conducts substantially | ||||||
6 | all of its operations in a River Edge Redevelopment | ||||||
7 | Zone or zones. This subparagraph (M) is exempt from | ||||||
8 | the provisions of Section 250; | ||||||
9 | (N) An amount equal to any contribution made to a | ||||||
10 | job training project established pursuant to the Tax | ||||||
11 | Increment Allocation Redevelopment Act; | ||||||
12 | (O) 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 | ||||||
16 | a High Impact Business located in Illinois; provided | ||||||
17 | that dividends eligible for the deduction provided in | ||||||
18 | subparagraph (M) of paragraph (2) of this subsection | ||||||
19 | shall not be eligible for the deduction provided under | ||||||
20 | this subparagraph (O); | ||||||
21 | (P) An amount equal to the amount of the deduction | ||||||
22 | used to compute the federal income tax credit for | ||||||
23 | restoration of substantial amounts held under claim of | ||||||
24 | right for the taxable year pursuant to Section 1341 of | ||||||
25 | the Internal Revenue Code; | ||||||
26 | (Q) For taxable year 1999 and thereafter, an |
| |||||||
| |||||||
1 | amount equal to the amount of any (i) distributions, | ||||||
2 | to the extent includible in gross income for federal | ||||||
3 | income tax purposes, made to the taxpayer because of | ||||||
4 | his or her status as a victim of persecution for racial | ||||||
5 | or religious reasons by Nazi Germany or any other Axis | ||||||
6 | regime or as an heir of the victim and (ii) items of | ||||||
7 | income, to the extent includible in gross income for | ||||||
8 | federal income tax purposes, attributable to, derived | ||||||
9 | from or in any way related to assets stolen from, | ||||||
10 | hidden from, or otherwise lost to a victim of | ||||||
11 | persecution for racial or religious reasons by Nazi | ||||||
12 | Germany or any other Axis regime immediately prior to, | ||||||
13 | during, and immediately after World War II, including, | ||||||
14 | but not limited to, interest on the proceeds | ||||||
15 | receivable as insurance under policies issued to a | ||||||
16 | victim of persecution for racial or religious reasons | ||||||
17 | by Nazi Germany or any other Axis regime by European | ||||||
18 | insurance companies immediately prior to and during | ||||||
19 | World War II; provided, however, this subtraction from | ||||||
20 | federal adjusted gross income does not apply to assets | ||||||
21 | acquired with such assets or with the proceeds from | ||||||
22 | the sale of such assets; provided, further, this | ||||||
23 | paragraph shall only apply to a taxpayer who was the | ||||||
24 | first recipient of such assets after their recovery | ||||||
25 | and who is a victim of persecution for racial or | ||||||
26 | religious reasons by Nazi Germany or any other Axis |
| |||||||
| |||||||
1 | regime or as an heir of the victim. The amount of and | ||||||
2 | the eligibility for any public assistance, benefit, or | ||||||
3 | similar entitlement is not affected by the inclusion | ||||||
4 | of items (i) and (ii) of this paragraph in gross income | ||||||
5 | for federal income tax purposes. This paragraph is | ||||||
6 | exempt from the provisions of Section 250; | ||||||
7 | (R) For taxable years 2001 and thereafter, for the | ||||||
8 | taxable year in which the bonus depreciation deduction | ||||||
9 | is taken on the taxpayer's federal income tax return | ||||||
10 | under subsection (k) of Section 168 of the Internal | ||||||
11 | Revenue Code and for each applicable taxable year | ||||||
12 | thereafter, an amount equal to "x", where: | ||||||
13 | (1) "y" equals the amount of the depreciation | ||||||
14 | deduction taken for the taxable year on the | ||||||
15 | taxpayer's federal income tax return on property | ||||||
16 | for which the bonus depreciation deduction was | ||||||
17 | taken in any year under subsection (k) of Section | ||||||
18 | 168 of the Internal Revenue Code, but not | ||||||
19 | including the bonus depreciation deduction; | ||||||
20 | (2) for taxable years ending on or before | ||||||
21 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
22 | and then divided by 70 (or "y" multiplied by | ||||||
23 | 0.429); and | ||||||
24 | (3) for taxable years ending after December | ||||||
25 | 31, 2005: | ||||||
26 | (i) for property on which a bonus |
| |||||||
| |||||||
1 | depreciation deduction of 30% of the adjusted | ||||||
2 | basis was taken, "x" equals "y" multiplied by | ||||||
3 | 30 and then divided by 70 (or "y" multiplied | ||||||
4 | by 0.429); | ||||||
5 | (ii) for property on which a bonus | ||||||
6 | depreciation deduction of 50% of the adjusted | ||||||
7 | basis was taken, "x" equals "y" multiplied by | ||||||
8 | 1.0; | ||||||
9 | (iii) for property on which a bonus | ||||||
10 | depreciation deduction of 100% of the adjusted | ||||||
11 | basis was taken in a taxable year ending on or | ||||||
12 | after December 31, 2021, "x" equals the | ||||||
13 | depreciation deduction that would be allowed | ||||||
14 | on that property if the taxpayer had made the | ||||||
15 | election under Section 168(k)(7) of the | ||||||
16 | Internal Revenue Code to not claim bonus | ||||||
17 | depreciation on that property; and | ||||||
18 | (iv) for property on which a bonus | ||||||
19 | depreciation deduction of a percentage other | ||||||
20 | than 30%, 50% or 100% of the adjusted basis | ||||||
21 | was taken in a taxable year ending on or after | ||||||
22 | December 31, 2021, "x" equals "y" multiplied | ||||||
23 | by 100 times the percentage bonus depreciation | ||||||
24 | on the property (that is, 100(bonus%)) and | ||||||
25 | then divided by 100 times 1 minus the | ||||||
26 | percentage bonus depreciation on the property |
| |||||||
| |||||||
1 | (that is, 100(1-bonus%)). | ||||||
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 a | ||||||
17 | subtraction is allowed with respect to that property | ||||||
18 | under subparagraph (R) and for which the taxpayer was | ||||||
19 | 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 | ||||||
23 | under this subparagraph only once with respect to any | ||||||
24 | one 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 | ||||||
4 | with 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 | ||||||
12 | that 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 | ||||||
23 | for 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 | ||||||
17 | for the fact that the foreign person's business | ||||||
18 | activity outside the United States is 80% or more of | ||||||
19 | that person's total business activity and (ii) for | ||||||
20 | taxable years ending on or after December 31, 2008, to | ||||||
21 | a person who would be a member of the same unitary | ||||||
22 | business group but for the fact that the person is | ||||||
23 | prohibited under Section 1501(a)(27) from being | ||||||
24 | included in the unitary business group because he or | ||||||
25 | she is ordinarily required to apportion business | ||||||
26 | income under different subsections of Section 304, but |
| |||||||
| |||||||
1 | not to exceed the addition modification required to be | ||||||
2 | made for the same taxable year under Section | ||||||
3 | 203(c)(2)(G-13) for intangible expenses and costs | ||||||
4 | paid, accrued, or incurred, directly or indirectly, to | ||||||
5 | the same foreign person. This subparagraph (V) is | ||||||
6 | exempt from the 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 | ||||||
13 | from 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; | ||||||
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 | ||||||
25 | or 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 | ||||||
3 | makes the election provided for by this subparagraph | ||||||
4 | (Y), the insurer to which the premiums were paid must | ||||||
5 | add back to income the amount subtracted by the | ||||||
6 | taxpayer pursuant to this subparagraph (Y). This | ||||||
7 | subparagraph (Y) is exempt from the provisions of | ||||||
8 | Section 250; | ||||||
9 | (Z) For taxable years beginning after December 31, | ||||||
10 | 2018 and before January 1, 2026, the amount of excess | ||||||
11 | business loss of the taxpayer disallowed as a | ||||||
12 | deduction by Section 461(l)(1)(B) of the Internal | ||||||
13 | Revenue Code; and | ||||||
14 | (AA) For taxable years beginning on or after | ||||||
15 | January 1, 2023, for any cannabis establishment | ||||||
16 | operating in this State and licensed under the | ||||||
17 | Cannabis Regulation and Tax Act or any cannabis | ||||||
18 | cultivation center or medical cannabis dispensing | ||||||
19 | organization operating in this State and licensed | ||||||
20 | under the Compassionate Use of Medical Cannabis | ||||||
21 | Program Act, an amount equal to the deductions that | ||||||
22 | were disallowed under Section 280E of the Internal | ||||||
23 | Revenue Code for the taxable year and that would not be | ||||||
24 | added back under this subsection. The provisions of | ||||||
25 | this subparagraph (AA) are exempt from the provisions | ||||||
26 | of Section 250. |
| |||||||
| |||||||
1 | (3) Limitation. The amount of any modification | ||||||
2 | otherwise required under this subsection shall, under | ||||||
3 | regulations prescribed by the Department, be adjusted by | ||||||
4 | any amounts included therein which were properly paid, | ||||||
5 | credited, or required to be distributed, or permanently | ||||||
6 | set aside for charitable purposes pursuant to Internal | ||||||
7 | Revenue Code Section 642(c) during the taxable year.
| ||||||
8 | (d) Partnerships. | ||||||
9 | (1) In general. In the case of a partnership, 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. The taxable income referred to in | ||||||
13 | paragraph (1) shall be modified by adding thereto the sum | ||||||
14 | of the following amounts: | ||||||
15 | (A) An amount equal to all amounts paid or accrued | ||||||
16 | to the taxpayer as interest or dividends during the | ||||||
17 | taxable year to the extent excluded from gross income | ||||||
18 | in the computation of taxable income; | ||||||
19 | (B) An amount equal to the amount of tax imposed by | ||||||
20 | this Act to the extent deducted from gross income for | ||||||
21 | the taxable year; | ||||||
22 | (C) The amount of deductions allowed to the | ||||||
23 | partnership pursuant to Section 707 (c) of the | ||||||
24 | Internal Revenue Code in calculating its taxable | ||||||
25 | income; |
| |||||||
| |||||||
1 | (D) An amount equal to the amount of the capital | ||||||
2 | gain deduction allowable under the Internal Revenue | ||||||
3 | Code, to the extent deducted from gross income in the | ||||||
4 | computation of taxable income; | ||||||
5 | (D-5) For taxable years 2001 and thereafter, an | ||||||
6 | amount equal to the bonus depreciation deduction taken | ||||||
7 | on the taxpayer's federal income tax return for the | ||||||
8 | taxable year under subsection (k) of Section 168 of | ||||||
9 | the Internal Revenue Code; | ||||||
10 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
11 | or otherwise disposes of property for which the | ||||||
12 | taxpayer was required in any taxable year to make an | ||||||
13 | addition modification under subparagraph (D-5), then | ||||||
14 | an amount equal to the aggregate amount of the | ||||||
15 | deductions taken in all taxable years under | ||||||
16 | subparagraph (O) with respect to that property. | ||||||
17 | If the taxpayer continues to own property through | ||||||
18 | the last day of the last tax year for which a | ||||||
19 | subtraction is allowed with respect to that property | ||||||
20 | under subparagraph (O) and for which the taxpayer was | ||||||
21 | allowed in any taxable year to make a subtraction | ||||||
22 | modification under subparagraph (O), then an amount | ||||||
23 | equal to that subtraction modification. | ||||||
24 | The taxpayer is required to make the addition | ||||||
25 | modification under this subparagraph only once with | ||||||
26 | respect to any one piece of property; |
| |||||||
| |||||||
1 | (D-7) An amount equal to the amount otherwise | ||||||
2 | allowed as a deduction in computing base income for | ||||||
3 | interest paid, accrued, or incurred, directly or | ||||||
4 | indirectly, (i) for taxable years ending on or after | ||||||
5 | December 31, 2004, to a foreign person who would be a | ||||||
6 | member of the same unitary business group but for the | ||||||
7 | fact the foreign person's business activity outside | ||||||
8 | the United States is 80% or more of the foreign | ||||||
9 | person's total business activity and (ii) for taxable | ||||||
10 | years ending on or after December 31, 2008, to a person | ||||||
11 | who would be a member of the same unitary business | ||||||
12 | group but for the fact that the person is prohibited | ||||||
13 | under Section 1501(a)(27) from being included in the | ||||||
14 | unitary business group because he or she is ordinarily | ||||||
15 | required to apportion business income under different | ||||||
16 | subsections of Section 304. The addition modification | ||||||
17 | required by this subparagraph shall be reduced to the | ||||||
18 | extent that dividends were included in base income of | ||||||
19 | the unitary group for the same taxable year and | ||||||
20 | received by the taxpayer or by a member of the | ||||||
21 | taxpayer's unitary business group (including amounts | ||||||
22 | included in gross income pursuant to Sections 951 | ||||||
23 | through 964 of the Internal Revenue Code and amounts | ||||||
24 | included in gross income under Section 78 of the | ||||||
25 | Internal Revenue Code) with respect to the stock of | ||||||
26 | the same person to whom the interest was paid, |
| |||||||
| |||||||
1 | accrued, or incurred. | ||||||
2 | This paragraph shall not apply to the following: | ||||||
3 | (i) an item of interest paid, accrued, or | ||||||
4 | incurred, directly or indirectly, to a person who | ||||||
5 | is subject in a foreign country or state, other | ||||||
6 | than a state which requires mandatory unitary | ||||||
7 | reporting, to a tax on or measured by net income | ||||||
8 | with respect to such interest; or | ||||||
9 | (ii) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person if | ||||||
11 | the taxpayer can establish, based on a | ||||||
12 | preponderance of the evidence, both of the | ||||||
13 | following: | ||||||
14 | (a) the person, during the same taxable | ||||||
15 | year, paid, accrued, or incurred, the interest | ||||||
16 | to a person that is not a related member, and | ||||||
17 | (b) the transaction giving rise to the | ||||||
18 | interest expense between the taxpayer and the | ||||||
19 | person did not have as a principal purpose the | ||||||
20 | avoidance of Illinois income tax, and is paid | ||||||
21 | pursuant to a contract or agreement that | ||||||
22 | reflects an arm's-length interest rate and | ||||||
23 | terms; or | ||||||
24 | (iii) the taxpayer can establish, based on | ||||||
25 | clear and convincing evidence, that the interest | ||||||
26 | paid, accrued, or incurred relates to a contract |
| |||||||
| |||||||
1 | or agreement entered into at arm's-length rates | ||||||
2 | and terms and the principal purpose for the | ||||||
3 | payment is not federal or Illinois tax avoidance; | ||||||
4 | 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 | ||||||
15 | for any tax year beginning after the effective | ||||||
16 | date of this amendment provided such adjustment is | ||||||
17 | made pursuant to regulation adopted by the | ||||||
18 | Department and such regulations provide methods | ||||||
19 | and standards by which the Department will utilize | ||||||
20 | its authority 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 | ||||||
18 | is subject in a foreign country or state, other | ||||||
19 | than a state which requires mandatory unitary | ||||||
20 | reporting, to a tax on or measured by net income | ||||||
21 | with respect 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 | ||||||
15 | the 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 | ||||||
19 | alternative method of apportionment under Section | ||||||
20 | 304(f); | ||||||
21 | Nothing in this subsection shall preclude the | ||||||
22 | Director from making any other adjustment | ||||||
23 | otherwise allowed under Section 404 of this Act | ||||||
24 | for any tax year beginning after the effective | ||||||
25 | date of this amendment provided such adjustment is | ||||||
26 | made pursuant to regulation adopted by the |
| |||||||
| |||||||
1 | Department and such regulations provide methods | ||||||
2 | and standards by which the Department will utilize | ||||||
3 | its authority under Section 404 of this Act; | ||||||
4 | (D-9) For taxable years ending on or after | ||||||
5 | December 31, 2008, an amount equal to the amount of | ||||||
6 | insurance premium expenses and costs otherwise allowed | ||||||
7 | as a deduction in computing base income, and that were | ||||||
8 | paid, accrued, or incurred, directly or indirectly, to | ||||||
9 | a person who would be a member of the same unitary | ||||||
10 | business group but for the fact that the person is | ||||||
11 | prohibited under Section 1501(a)(27) from being | ||||||
12 | included in the unitary business group because he or | ||||||
13 | she is ordinarily required to apportion business | ||||||
14 | income under different subsections of Section 304. The | ||||||
15 | addition modification required by this subparagraph | ||||||
16 | shall be reduced to the extent that dividends were | ||||||
17 | included in base income of the unitary group for the | ||||||
18 | same taxable year and received by the taxpayer or by a | ||||||
19 | member of the taxpayer's unitary business group | ||||||
20 | (including amounts included in gross income under | ||||||
21 | Sections 951 through 964 of the Internal Revenue Code | ||||||
22 | and amounts included in gross income under Section 78 | ||||||
23 | of the Internal Revenue Code) with respect to the | ||||||
24 | stock of the same person to whom the premiums and costs | ||||||
25 | were directly or indirectly paid, incurred, or | ||||||
26 | accrued. The preceding sentence does not apply to the |
| |||||||
| |||||||
1 | extent that the same dividends caused a reduction to | ||||||
2 | the addition modification required under Section | ||||||
3 | 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act; | ||||||
4 | (D-10) An amount equal to the credit allowable to | ||||||
5 | the taxpayer under Section 218(a) of this Act, | ||||||
6 | determined without regard to Section 218(c) of this | ||||||
7 | Act; | ||||||
8 | (D-11) For taxable years ending on or after | ||||||
9 | December 31, 2017, an amount equal to the deduction | ||||||
10 | allowed under Section 199 of the Internal Revenue Code | ||||||
11 | for the taxable year; | ||||||
12 | and by deducting from the total so obtained the following | ||||||
13 | amounts: | ||||||
14 | (E) The valuation limitation amount; | ||||||
15 | (F) An amount equal to the amount of any tax | ||||||
16 | imposed by this Act which was refunded to the taxpayer | ||||||
17 | and included in such total for the taxable year; | ||||||
18 | (G) An amount equal to all amounts included in | ||||||
19 | taxable income as modified by subparagraphs (A), (B), | ||||||
20 | (C) and (D) which are exempt from taxation by this | ||||||
21 | State either by reason of its statutes or Constitution | ||||||
22 | or by reason of the Constitution, treaties or statutes | ||||||
23 | of the United States; provided that, in the case of any | ||||||
24 | statute of this State that exempts income derived from | ||||||
25 | bonds or other obligations from the tax imposed under | ||||||
26 | this Act, the amount exempted shall be the interest |
| |||||||
| |||||||
1 | net of bond premium amortization; | ||||||
2 | (H) Any income of the partnership which | ||||||
3 | constitutes personal service income as defined in | ||||||
4 | Section 1348(b)(1) of the Internal Revenue Code (as in | ||||||
5 | effect December 31, 1981) or a reasonable allowance | ||||||
6 | for compensation paid or accrued for services rendered | ||||||
7 | by partners to the partnership, whichever is greater; | ||||||
8 | this subparagraph (H) is exempt from the provisions of | ||||||
9 | Section 250; | ||||||
10 | (I) An amount equal to all amounts of income | ||||||
11 | distributable to an entity subject to the Personal | ||||||
12 | Property Tax Replacement Income Tax imposed by | ||||||
13 | subsections (c) and (d) of Section 201 of this Act | ||||||
14 | including amounts distributable to organizations | ||||||
15 | exempt from federal income tax by reason of Section | ||||||
16 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
17 | (I) is exempt from the provisions of Section 250; | ||||||
18 | (J) With the exception of any amounts subtracted | ||||||
19 | under subparagraph (G), an amount equal to the sum of | ||||||
20 | all amounts disallowed as deductions by (i) Sections | ||||||
21 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
22 | and all amounts of expenses allocable to interest and | ||||||
23 | disallowed as deductions by Section 265(a)(1) of the | ||||||
24 | Internal Revenue Code; and (ii) for taxable years | ||||||
25 | ending on or after August 13, 1999, Sections | ||||||
26 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the |
| |||||||
| |||||||
1 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
2 | ending on or after December 31, 2011, Section | ||||||
3 | 45G(e)(3) of the Internal Revenue Code and, for | ||||||
4 | taxable years ending on or after December 31, 2008, | ||||||
5 | any amount included in gross income under Section 87 | ||||||
6 | of the Internal Revenue Code; the provisions of this | ||||||
7 | subparagraph are exempt from the provisions of Section | ||||||
8 | 250; | ||||||
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 from a River Edge Redevelopment | ||||||
15 | Zone or zones. This subparagraph (K) is exempt from | ||||||
16 | the provisions of Section 250; | ||||||
17 | (L) An amount equal to any contribution made to a | ||||||
18 | job training project established pursuant to the Real | ||||||
19 | Property Tax Increment Allocation Redevelopment Act; | ||||||
20 | (M) An amount equal to those dividends included in | ||||||
21 | such total that were paid by a corporation that | ||||||
22 | conducts business operations in a federally designated | ||||||
23 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
24 | a High Impact Business located in Illinois; provided | ||||||
25 | that dividends eligible for the deduction provided in | ||||||
26 | subparagraph (K) of paragraph (2) of this subsection |
| |||||||
| |||||||
1 | shall not be eligible for the deduction provided under | ||||||
2 | this subparagraph (M); | ||||||
3 | (N) An amount equal to the amount of the deduction | ||||||
4 | used to compute the federal income tax credit for | ||||||
5 | restoration of substantial amounts held under claim of | ||||||
6 | right for the taxable year pursuant to Section 1341 of | ||||||
7 | the Internal Revenue Code; | ||||||
8 | (O) For taxable years 2001 and thereafter, for the | ||||||
9 | taxable year in which the bonus depreciation deduction | ||||||
10 | is taken on the taxpayer's federal income tax return | ||||||
11 | under subsection (k) of Section 168 of the Internal | ||||||
12 | Revenue Code and for each applicable taxable year | ||||||
13 | thereafter, an amount equal to "x", where: | ||||||
14 | (1) "y" equals the amount of the depreciation | ||||||
15 | deduction taken for the taxable year on the | ||||||
16 | taxpayer's federal income tax return on property | ||||||
17 | for which the bonus depreciation deduction was | ||||||
18 | taken in any year under subsection (k) of Section | ||||||
19 | 168 of the Internal Revenue Code, but not | ||||||
20 | including the bonus depreciation deduction; | ||||||
21 | (2) for taxable years ending on or before | ||||||
22 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
23 | and then divided by 70 (or "y" multiplied by | ||||||
24 | 0.429); and | ||||||
25 | (3) for taxable years ending after December | ||||||
26 | 31, 2005: |
| |||||||
| |||||||
1 | (i) for property on which a bonus | ||||||
2 | depreciation deduction of 30% of the adjusted | ||||||
3 | basis was taken, "x" equals "y" multiplied by | ||||||
4 | 30 and then divided by 70 (or "y" multiplied | ||||||
5 | by 0.429); | ||||||
6 | (ii) for property on which a bonus | ||||||
7 | depreciation deduction of 50% of the adjusted | ||||||
8 | basis was taken, "x" equals "y" multiplied by | ||||||
9 | 1.0; | ||||||
10 | (iii) for property on which a bonus | ||||||
11 | depreciation deduction of 100% of the adjusted | ||||||
12 | basis was taken in a taxable year ending on or | ||||||
13 | after December 31, 2021, "x" equals the | ||||||
14 | depreciation deduction that would be allowed | ||||||
15 | on that property if the taxpayer had made the | ||||||
16 | election under Section 168(k)(7) of the | ||||||
17 | Internal Revenue Code to not claim bonus | ||||||
18 | depreciation on that property; and | ||||||
19 | (iv) for property on which a bonus | ||||||
20 | depreciation deduction of a percentage other | ||||||
21 | than 30%, 50% or 100% of the adjusted basis | ||||||
22 | was taken in a taxable year ending on or after | ||||||
23 | December 31, 2021, "x" equals "y" multiplied | ||||||
24 | by 100 times the percentage bonus depreciation | ||||||
25 | on the property (that is, 100(bonus%)) and | ||||||
26 | then divided by 100 times 1 minus the |
| |||||||
| |||||||
1 | percentage bonus depreciation on the property | ||||||
2 | (that is, 100(1-bonus%)). | ||||||
3 | The aggregate amount deducted under this | ||||||
4 | subparagraph in all taxable years for any one piece of | ||||||
5 | property may not exceed the amount of the bonus | ||||||
6 | depreciation deduction taken on that property on the | ||||||
7 | taxpayer's federal income tax return under subsection | ||||||
8 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
9 | subparagraph (O) is exempt from the provisions of | ||||||
10 | Section 250; | ||||||
11 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
12 | otherwise disposes of property for which the taxpayer | ||||||
13 | was required in any taxable year to make an addition | ||||||
14 | modification under subparagraph (D-5), then an amount | ||||||
15 | equal to that addition modification. | ||||||
16 | If the taxpayer continues to own property through | ||||||
17 | the last day of the last tax year for which a | ||||||
18 | subtraction is allowed with respect to that property | ||||||
19 | under subparagraph (O) and for which the taxpayer was | ||||||
20 | required in any taxable year to make an addition | ||||||
21 | modification under subparagraph (D-5), then an amount | ||||||
22 | equal to that addition modification. | ||||||
23 | The taxpayer is allowed to take the deduction | ||||||
24 | under this subparagraph only once with respect to any | ||||||
25 | one piece of property. | ||||||
26 | This subparagraph (P) is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250; | ||||||
2 | (Q) The amount of (i) any interest income (net of | ||||||
3 | the deductions allocable thereto) taken into account | ||||||
4 | for the taxable year with respect to a transaction | ||||||
5 | with a taxpayer that is required to make an addition | ||||||
6 | modification with respect to such transaction under | ||||||
7 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
8 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
9 | the amount of such addition modification and (ii) any | ||||||
10 | income from intangible property (net of the deductions | ||||||
11 | allocable thereto) taken into account for the taxable | ||||||
12 | year with respect to a transaction with a taxpayer | ||||||
13 | that is required to make an addition modification with | ||||||
14 | respect to such transaction under Section | ||||||
15 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
16 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
17 | addition modification. This subparagraph (Q) is exempt | ||||||
18 | from Section 250; | ||||||
19 | (R) 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 | ||||||
24 | for the fact that the foreign person's business | ||||||
25 | activity outside the United States is 80% or more of | ||||||
26 | that person's total business activity and (ii) for |
| |||||||
| |||||||
1 | taxable years ending on or after December 31, 2008, to | ||||||
2 | a person who would be a member of the same unitary | ||||||
3 | business group but for the fact that the person is | ||||||
4 | prohibited under Section 1501(a)(27) from being | ||||||
5 | included in the unitary business group because he or | ||||||
6 | she is ordinarily required to apportion business | ||||||
7 | income under different subsections of Section 304, but | ||||||
8 | not to exceed the addition modification required to be | ||||||
9 | made for the same taxable year under Section | ||||||
10 | 203(d)(2)(D-7) for interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to the same person. | ||||||
12 | This subparagraph (R) is exempt from Section 250; | ||||||
13 | (S) 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 | ||||||
18 | for the fact that the foreign person's business | ||||||
19 | activity outside the United States is 80% or more of | ||||||
20 | that person's total business activity and (ii) for | ||||||
21 | taxable years ending on or after December 31, 2008, 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, but | ||||||
2 | not to exceed the addition modification required to be | ||||||
3 | made for the same taxable year under Section | ||||||
4 | 203(d)(2)(D-8) for intangible expenses and costs paid, | ||||||
5 | accrued, or incurred, directly or indirectly, to the | ||||||
6 | same person. This subparagraph (S) is exempt from | ||||||
7 | Section 250; | ||||||
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 | ||||||
14 | or 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 | ||||||
18 | makes the election provided for by this subparagraph | ||||||
19 | (T), the insurer to which the premiums were paid must | ||||||
20 | add back to income the amount subtracted by the | ||||||
21 | taxpayer pursuant to this subparagraph (T). This | ||||||
22 | subparagraph (T) is exempt from the provisions of | ||||||
23 | Section 250; and | ||||||
24 | (U) For taxable years beginning on or after | ||||||
25 | January 1, 2023, for any cannabis establishment | ||||||
26 | operating in this State and licensed under the |
| |||||||
| |||||||
1 | Cannabis Regulation and Tax Act or any cannabis | ||||||
2 | cultivation center or medical cannabis dispensing | ||||||
3 | organization operating in this State and licensed | ||||||
4 | under the Compassionate Use of Medical Cannabis | ||||||
5 | Program Act, an amount equal to the deductions that | ||||||
6 | were disallowed under Section 280E of the Internal | ||||||
7 | Revenue Code for the taxable year and that would not be | ||||||
8 | added back under this subsection. The provisions of | ||||||
9 | this subparagraph (U) are exempt from the provisions | ||||||
10 | of Section 250.
| ||||||
11 | (e) Gross income; adjusted gross income; taxable income. | ||||||
12 | (1) In general. Subject to the provisions of paragraph | ||||||
13 | (2) and subsection (b)(3), for purposes of this Section | ||||||
14 | and Section 803(e), a taxpayer's gross income, adjusted | ||||||
15 | gross income, or taxable income for the taxable year shall | ||||||
16 | mean the amount of gross income, adjusted gross income or | ||||||
17 | taxable income properly reportable for federal income tax | ||||||
18 | purposes for the taxable year under the provisions of the | ||||||
19 | Internal Revenue Code. Taxable income may be less than | ||||||
20 | zero. However, for taxable years ending on or after | ||||||
21 | December 31, 1986, net operating loss carryforwards from | ||||||
22 | taxable years ending prior to December 31, 1986, may not | ||||||
23 | exceed the sum of federal taxable income for the taxable | ||||||
24 | year before net operating loss deduction, plus the excess | ||||||
25 | of addition modifications over subtraction modifications |
| |||||||
| |||||||
1 | for the taxable year. For taxable years ending prior to | ||||||
2 | December 31, 1986, taxable income may never be an amount | ||||||
3 | in excess of the net operating loss for the taxable year as | ||||||
4 | defined in subsections (c) and (d) of Section 172 of the | ||||||
5 | Internal Revenue Code, provided that when taxable income | ||||||
6 | of a corporation (other than a Subchapter S corporation), | ||||||
7 | trust, or estate is less than zero and addition | ||||||
8 | modifications, other than those provided by subparagraph | ||||||
9 | (E) of paragraph (2) of subsection (b) for corporations or | ||||||
10 | subparagraph (E) of paragraph (2) of subsection (c) for | ||||||
11 | trusts and estates, exceed subtraction modifications, an | ||||||
12 | addition modification must be made under those | ||||||
13 | subparagraphs for any other taxable year to which the | ||||||
14 | taxable income less than zero (net operating loss) is | ||||||
15 | applied under Section 172 of the Internal Revenue Code or | ||||||
16 | under subparagraph (E) of paragraph (2) of this subsection | ||||||
17 | (e) applied in conjunction with Section 172 of the | ||||||
18 | Internal Revenue Code. | ||||||
19 | (2) Special rule. For purposes of paragraph (1) of | ||||||
20 | this subsection, the taxable income properly reportable | ||||||
21 | for federal income tax purposes shall mean: | ||||||
22 | (A) Certain life insurance companies. In the case | ||||||
23 | of a life insurance company subject to the tax imposed | ||||||
24 | by Section 801 of the Internal Revenue Code, life | ||||||
25 | insurance company taxable income, plus the amount of | ||||||
26 | distribution from pre-1984 policyholder surplus |
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1 | accounts as calculated under Section 815a of the | ||||||
2 | Internal Revenue Code; | ||||||
3 | (B) Certain other insurance companies. In the case | ||||||
4 | of mutual insurance companies subject to the tax | ||||||
5 | imposed by Section 831 of the Internal Revenue Code, | ||||||
6 | insurance company taxable income; | ||||||
7 | (C) Regulated investment companies. In the case of | ||||||
8 | a regulated investment company subject to the tax | ||||||
9 | imposed by Section 852 of the Internal Revenue Code, | ||||||
10 | investment company taxable income; | ||||||
11 | (D) Real estate investment trusts. In the case of | ||||||
12 | a real estate investment trust subject to the tax | ||||||
13 | imposed by Section 857 of the Internal Revenue Code, | ||||||
14 | real estate investment trust taxable income; | ||||||
15 | (E) Consolidated corporations. In the case of a | ||||||
16 | corporation which is a member of an affiliated group | ||||||
17 | of corporations filing a consolidated income tax | ||||||
18 | return for the taxable year for federal income tax | ||||||
19 | purposes, taxable income determined as if such | ||||||
20 | corporation had filed a separate return for federal | ||||||
21 | income tax purposes for the taxable year and each | ||||||
22 | preceding taxable year for which it was a member of an | ||||||
23 | affiliated group. For purposes of this subparagraph, | ||||||
24 | the taxpayer's separate taxable income shall be | ||||||
25 | determined as if the election provided by Section | ||||||
26 | 243(b)(2) of the Internal Revenue Code had been in |
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1 | effect for all such years; | ||||||
2 | (F) Cooperatives. In the case of a cooperative | ||||||
3 | corporation or association, the taxable income of such | ||||||
4 | organization determined in accordance with the | ||||||
5 | provisions of Section 1381 through 1388 of the | ||||||
6 | Internal Revenue Code, but without regard to the | ||||||
7 | prohibition against offsetting losses from patronage | ||||||
8 | activities against income from nonpatronage | ||||||
9 | activities; except that a cooperative corporation or | ||||||
10 | association may make an election to follow its federal | ||||||
11 | income tax treatment of patronage losses and | ||||||
12 | nonpatronage losses. In the event such election is | ||||||
13 | made, such losses shall be computed and carried over | ||||||
14 | in a manner consistent with subsection (a) of Section | ||||||
15 | 207 of this Act and apportioned by the apportionment | ||||||
16 | factor reported by the cooperative on its Illinois | ||||||
17 | income tax return filed for the taxable year in which | ||||||
18 | the losses are incurred. The election shall be | ||||||
19 | effective for all taxable years with original returns | ||||||
20 | due on or after the date of the election. In addition, | ||||||
21 | the cooperative may file an amended return or returns, | ||||||
22 | as allowed under this Act, to provide that the | ||||||
23 | election shall be effective for losses incurred or | ||||||
24 | carried forward for taxable years occurring prior to | ||||||
25 | the date of the election. Once made, the election may | ||||||
26 | only be revoked upon approval of the Director. The |
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1 | Department shall adopt rules setting forth | ||||||
2 | requirements for documenting the elections and any | ||||||
3 | resulting Illinois net loss and the standards to be | ||||||
4 | used by the Director in evaluating requests to revoke | ||||||
5 | elections. Public Act 96-932 is declaratory of | ||||||
6 | existing law; | ||||||
7 | (G) Subchapter S corporations. In the case of: (i) | ||||||
8 | a Subchapter S corporation for which there is in | ||||||
9 | effect an election for the taxable year under Section | ||||||
10 | 1362 of the Internal Revenue Code, the taxable income | ||||||
11 | of such corporation determined in accordance with | ||||||
12 | Section 1363(b) of the Internal Revenue Code, except | ||||||
13 | that taxable income shall take into account those | ||||||
14 | items which are required by Section 1363(b)(1) of the | ||||||
15 | Internal Revenue Code to be separately stated; and | ||||||
16 | (ii) a Subchapter S corporation for which there is in | ||||||
17 | effect a federal election to opt out of the provisions | ||||||
18 | of the Subchapter S Revision Act of 1982 and have | ||||||
19 | applied instead the prior federal Subchapter S rules | ||||||
20 | as in effect on July 1, 1982, the taxable income of | ||||||
21 | such corporation determined in accordance with the | ||||||
22 | federal Subchapter S rules as in effect on July 1, | ||||||
23 | 1982; and | ||||||
24 | (H) Partnerships. In the case of a partnership, | ||||||
25 | taxable income determined in accordance with Section | ||||||
26 | 703 of the Internal Revenue Code, except that taxable |
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1 | income shall take into account those items which are | ||||||
2 | required by Section 703(a)(1) to be separately stated | ||||||
3 | but which would be taken into account by an individual | ||||||
4 | in calculating his taxable income. | ||||||
5 | (3) Recapture of business expenses on disposition of | ||||||
6 | asset or business. Notwithstanding any other law to the | ||||||
7 | contrary, if in prior years income from an asset or | ||||||
8 | business has been classified as business income and in a | ||||||
9 | later year is demonstrated to be non-business income, then | ||||||
10 | all expenses, without limitation, deducted in such later | ||||||
11 | year and in the 2 immediately preceding taxable years | ||||||
12 | related to that asset or business that generated the | ||||||
13 | non-business income shall be added back and recaptured as | ||||||
14 | business income in the year of the disposition of the | ||||||
15 | asset or business. Such amount shall be apportioned to | ||||||
16 | Illinois using the greater of the apportionment fraction | ||||||
17 | computed for the business under Section 304 of this Act | ||||||
18 | for the taxable year or the average of the apportionment | ||||||
19 | fractions computed for the business under Section 304 of | ||||||
20 | this Act for the taxable year and for the 2 immediately | ||||||
21 | preceding taxable years.
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22 | (f) Valuation limitation amount. | ||||||
23 | (1) In general. The valuation limitation amount | ||||||
24 | referred to in subsections (a)(2)(G), (c)(2)(I) and | ||||||
25 | (d)(2)(E) is an amount equal to: |
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1 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
2 | amounts (to the extent consisting of gain reportable | ||||||
3 | under the provisions of Section 1245 or 1250 of the | ||||||
4 | Internal Revenue Code) for all property in respect of | ||||||
5 | which such gain was reported for the taxable year; | ||||||
6 | plus | ||||||
7 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
8 | 1969 appreciation amounts (to the extent consisting of | ||||||
9 | capital gain) for all property in respect of which | ||||||
10 | such gain was reported for federal income tax purposes | ||||||
11 | for the taxable year, or (ii) the net capital gain for | ||||||
12 | the taxable year, reduced in either case by any amount | ||||||
13 | of such gain included in the amount determined under | ||||||
14 | subsection (a)(2)(F) or (c)(2)(H). | ||||||
15 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
16 | (A) If the fair market value of property referred | ||||||
17 | to in paragraph (1) was readily ascertainable on | ||||||
18 | August 1, 1969, the pre-August 1, 1969 appreciation | ||||||
19 | amount for such property is the lesser of (i) the | ||||||
20 | excess of such fair market value over the taxpayer's | ||||||
21 | basis (for determining gain) for such property on that | ||||||
22 | date (determined under the Internal Revenue Code as in | ||||||
23 | effect on that date), or (ii) the total gain realized | ||||||
24 | and reportable for federal income tax purposes in | ||||||
25 | respect of the sale, exchange or other disposition of | ||||||
26 | such property. |
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1 | (B) If the fair market value of property referred | ||||||
2 | to in paragraph (1) was not readily ascertainable on | ||||||
3 | August 1, 1969, the pre-August 1, 1969 appreciation | ||||||
4 | amount for such property is that amount which bears | ||||||
5 | the same ratio to the total gain reported in respect of | ||||||
6 | the property for federal income tax purposes for the | ||||||
7 | taxable year, as the number of full calendar months in | ||||||
8 | that part of the taxpayer's holding period for the | ||||||
9 | property ending July 31, 1969 bears to the number of | ||||||
10 | full calendar months in the taxpayer's entire holding | ||||||
11 | period for the property. | ||||||
12 | (C) The Department shall prescribe such | ||||||
13 | regulations as may be necessary to carry out the | ||||||
14 | purposes of this paragraph.
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15 | (g) Double deductions. Unless specifically provided | ||||||
16 | otherwise, nothing in this Section shall permit the same item | ||||||
17 | to be deducted more than once.
| ||||||
18 | (h) Legislative intention. Except as expressly provided by | ||||||
19 | this Section there shall be no modifications or limitations on | ||||||
20 | the amounts of income, gain, loss or deduction taken into | ||||||
21 | account in determining gross income, adjusted gross income or | ||||||
22 | taxable income for federal income tax purposes for the taxable | ||||||
23 | year, or in the amount of such items entering into the | ||||||
24 | computation of base income and net income under this Act for |
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| |||||||
1 | such taxable year, whether in respect of property values as of | ||||||
2 | August 1, 1969 or otherwise. | ||||||
3 | (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; | ||||||
4 | 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. | ||||||
5 | 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised | ||||||
6 | 9-26-23.)
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