Bill Text: IL HB1883 | 2011-2012 | 97th General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Property Tax Code. Provides that the notice of the first levy of taxes by a municipality or county in a special service area shall include the proposed tax levy, the tax rates for the year preceding the levy year of other taxing districts in the special service area, the proposed budget, and a tax impact statement. Provides that the tax impact statement shall contain estimates of the tax required for the proposed special service area and estimates of the tax increase for taxpayers in the special service area. Provides factors on which the estimates of the tax rates shall be based. Provides that the public hearing required for the proposal of a special service area shall be held within the boundaries of the proposed special service area. Effective January 1, 2012.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2013-01-08 - Session Sine Die [HB1883 Detail]
Download: Illinois-2011-HB1883-Amended.html
Bill Title: Amends the Property Tax Code. Provides that the notice of the first levy of taxes by a municipality or county in a special service area shall include the proposed tax levy, the tax rates for the year preceding the levy year of other taxing districts in the special service area, the proposed budget, and a tax impact statement. Provides that the tax impact statement shall contain estimates of the tax required for the proposed special service area and estimates of the tax increase for taxpayers in the special service area. Provides factors on which the estimates of the tax rates shall be based. Provides that the public hearing required for the proposal of a special service area shall be held within the boundaries of the proposed special service area. Effective January 1, 2012.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2013-01-08 - Session Sine Die [HB1883 Detail]
Download: Illinois-2011-HB1883-Amended.html
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1 | AMENDMENT TO HOUSE BILL 1883
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2 | AMENDMENT NO. ______. Amend House Bill 1883 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Article 1. Findings | ||||||
5 | Section 1-1. Legislative findings. | ||||||
6 | (1) The House of Representatives adopted House Resolution | ||||||
7 | 110 on March 8, 2011, setting forth the estimates of general | ||||||
8 | funds the House expects to be available during State fiscal | ||||||
9 | year 2012. | ||||||
10 | (2) In determining the estimates of general funds expected | ||||||
11 | to be available during State fiscal year 2012, the House | ||||||
12 | Revenue & Finance Committee assumed that the State would not | ||||||
13 | collect approximately $600,000,000 of income tax revenues due | ||||||
14 | to the allowance of special bonus depreciation rules approved | ||||||
15 | by the federal government. | ||||||
16 | (3) The House of Representatives adopted House Resolution |
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1 | 158 on March 30, 2011, which provides that if the actual amount | ||||||
2 | of funds from State sources that become available during State | ||||||
3 | fiscal year 2012 exceeds the House's estimates set forth in | ||||||
4 | House Resolution 110, then that excess shall first be used to | ||||||
5 | reduce the backlog of unpaid State obligations to the extent | ||||||
6 | authorized by law. | ||||||
7 | (4) These concepts are prudent and should be continued for | ||||||
8 | State fiscal year 2013 and beyond. | ||||||
9 | (5) As the House Revenue & Finance Committee develops the | ||||||
10 | estimates of general funds expected to be available during | ||||||
11 | State fiscal year 2013, an estimated $250,000,000 of income tax | ||||||
12 | revenues in excess of the State fiscal year 2012 budgeted | ||||||
13 | amount will become available due to the phasing out of the | ||||||
14 | allowance of special bonus depreciation rules approved by the | ||||||
15 | federal government. | ||||||
16 | (6) Therefore, the General Assembly finds that a tax | ||||||
17 | incentive package that does not exceed $250,000,000 in State | ||||||
18 | fiscal year 2013 can be approved without any negative impact to | ||||||
19 | the State budget in State fiscal years 2012 and 2013 while | ||||||
20 | providing tax relief to a large number of Illinois individual | ||||||
21 | and business taxpayers.
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22 | Article 5. Illinois Independent Tax Tribunal Act | ||||||
23 | Section 5-1. Short title. This Article may be cited as the | ||||||
24 | Illinois Independent Tax Tribunal Act.
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1 | Section 5-5. Independent Tax Tribunal Board; Department of | ||||||
2 | Revenue. | ||||||
3 | (a) On and after July 1, 2013, the Department of Revenue, | ||||||
4 | or any successor agency, shall no longer hear and act upon (i) | ||||||
5 | any protests of notices of tax liability or deficiencies for | ||||||
6 | all taxes administered by the Department or (ii) revocations of | ||||||
7 | licenses issued by the Department of Revenue. | ||||||
8 | (b) Beginning July 1, 2013, an Independent Tax Tribunal | ||||||
9 | Board shall assume, exercise, and administer all rights, | ||||||
10 | powers, duties, and responsibilities pertaining to (i) any | ||||||
11 | protests of notices of tax liability or deficiencies for all | ||||||
12 | taxes administered by the Department of Revenue or (ii) | ||||||
13 | revocations of licenses issued by the Department of Revenue. | ||||||
14 | The Independent Tax Tribunal Board shall be created by law and | ||||||
15 | no State agency shall assume the functions of the Board.
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16 | Article 10. Live Theater Production Tax Credit Act | ||||||
17 | Section 10-1. Short title. This Article may be cited as the | ||||||
18 | Live Theater Production Tax Credit Act. References in this | ||||||
19 | Article to "this Act" mean this Article.
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20 | Section 10-5. Purpose. The Illinois economy depends | ||||||
21 | heavily on the commercial for-profit live theater industry and | ||||||
22 | the pre-Broadway and long-run shows that are presented in |
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1 | Illinois. As a result of intense competition from other | ||||||
2 | prominent theater cities in the United States and abroad in | ||||||
3 | attracting pre-Broadway and long-run shows, Illinois must move | ||||||
4 | aggressively with new business development investment tools so | ||||||
5 | that Illinois is more competitive in site location decision | ||||||
6 | making for show producers. In an increasingly global economy, | ||||||
7 | Illinois' long term development will benefit from the rational, | ||||||
8 | strategic use of State resources in support of pre-Broadway | ||||||
9 | live theater and long run show development and growth. It is | ||||||
10 | the purpose of this Act to preserve and expand the existing | ||||||
11 | work force used in live theater and enhance the marketing of | ||||||
12 | the presentation of live theater in Illinois. It shall be the | ||||||
13 | policy of this State to promote and encourage the training and | ||||||
14 | hiring of Illinois residents who represent the diversity of the | ||||||
15 | Illinois population through the creation and implementation of | ||||||
16 | training, education, and recruitment programs organized in | ||||||
17 | cooperation with Illinois colleges and universities, labor | ||||||
18 | organizations, and the commercial for-profit live theater | ||||||
19 | industry.
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20 | Section 10-10. Definitions. As used in this Act: | ||||||
21 | "Accredited theater production" means a for-profit live | ||||||
22 | stage presentation in a qualified production facility, as | ||||||
23 | defined in this Section, that is either (i) a pre-Broadway | ||||||
24 | production or (ii) a long-run production for which the | ||||||
25 | aggregate Illinois labor and marketing expenditures exceed |
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1 | $100,000. | ||||||
2 | "Pre-Broadway production" means a live stage production | ||||||
3 | that, in its original or adaptive version, is performed in a | ||||||
4 | qualified production facility having a presentation scheduled | ||||||
5 | for Broadway's Theater District in New York City within 12 | ||||||
6 | months after its Illinois presentation. | ||||||
7 | "Long-run production" means a live stage production that is | ||||||
8 | performed in a qualified production facility for longer than 8 | ||||||
9 | weeks, with at least 6 performances per week, and includes a | ||||||
10 | production that spans the end of one tax year and the | ||||||
11 | commencement of a new tax year that, in combination, meets the | ||||||
12 | criteria set forth in this definition making it a long-run | ||||||
13 | production eligible for a theater tax credit award in each tax | ||||||
14 | year or portion thereof. | ||||||
15 | "Accredited theater production certificate" means a | ||||||
16 | certificate issued by the Department certifying that the | ||||||
17 | production is an accredited theater production that meets the | ||||||
18 | guidelines of this Act. | ||||||
19 | "Applicant" means a taxpayer that is a theater producer, | ||||||
20 | owner, licensee, operator, or presenter that is presenting or | ||||||
21 | has presented a live stage presentation located within the | ||||||
22 | State of Illinois who: | ||||||
23 | (1) owns or licenses the theatrical rights of the stage | ||||||
24 | presentation for the Illinois production period; or | ||||||
25 | (2) has contracted or will contract directly with the | ||||||
26 | owner or licensee of the theatrical rights or a person |
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1 | acting on behalf of the owner or licensee to provide live | ||||||
2 | performances of the production. | ||||||
3 | An applicant that directly or indirectly owns, controls, or | ||||||
4 | operates multiple qualified production facilities shall be | ||||||
5 | presumed to be and considered for the purposes of this Act to | ||||||
6 | be a single applicant; provided, however, that as to each of | ||||||
7 | the applicant's qualified production facilities, the applicant | ||||||
8 | shall be eligible to separately and contemporaneously (i) apply | ||||||
9 | for and obtain accredited theater production certificates, | ||||||
10 | (ii) stage accredited theater productions, and (iii) apply for | ||||||
11 | and receive a tax credit award certificate for each of | ||||||
12 | applicant's accredited theater productions performed at each | ||||||
13 | of the applicant's qualified production facilities. | ||||||
14 | "Department" means the Department of Commerce and Economic | ||||||
15 | Opportunity. | ||||||
16 | "Director" means the Director of the Department. | ||||||
17 | "Illinois labor expenditure" means gross salary or wages | ||||||
18 | including, but not limited to, taxes, benefits, and any other | ||||||
19 | consideration incurred or paid to non-talent employees of the | ||||||
20 | applicant for services rendered to and on behalf of the | ||||||
21 | accredited theater production. To qualify as an Illinois labor | ||||||
22 | expenditure, the expenditure must be: | ||||||
23 | (1) incurred or paid by the applicant on or after the | ||||||
24 | effective date of the Act for services related to any | ||||||
25 | portion of an accredited theater production from its | ||||||
26 | pre-production stages, including, but not limited to, the |
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1 | writing of the script, casting, hiring of service | ||||||
2 | providers, purchases from vendors, marketing, advertising, | ||||||
3 | public relations, load in, rehearsals, performances, other | ||||||
4 | accredited theater production related activities, and load | ||||||
5 | out; | ||||||
6 | (2) directly attributable to the accredited theater | ||||||
7 | production; | ||||||
8 | (3) limited to the first $100,000 of wages incurred or | ||||||
9 | paid to each employee of an accredited theater production | ||||||
10 | in each tax year; | ||||||
11 | (4) included in the federal income tax basis of the | ||||||
12 | property; | ||||||
13 | (5) paid in the tax year for which the applicant is | ||||||
14 | claiming the tax credit award, or no later than 60 days | ||||||
15 | after the end of the tax year; | ||||||
16 | (6) paid to persons residing in Illinois at the time | ||||||
17 | payments were made; and | ||||||
18 | (7) reasonable in the circumstances. | ||||||
19 | "Illinois production spending" means any and all expenses | ||||||
20 | directly or indirectly incurred relating to an accredited | ||||||
21 | theater production presented in any qualified production | ||||||
22 | facility of the applicant, including, but not limited to, | ||||||
23 | expenditures for: | ||||||
24 | (1) national marketing, public relations, and the | ||||||
25 | creation and placement of print, electronic, television, | ||||||
26 | billboard, and other forms of advertising; and |
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1 | (2) the construction and fabrication of scenic | ||||||
2 | materials and elements; provided, however, that the | ||||||
3 | maximum amount of expenditures attributable to the | ||||||
4 | construction and fabrication of scenic materials and | ||||||
5 | elements eligible for a tax credit award shall not exceed | ||||||
6 | $500,000 per applicant per production in any single tax | ||||||
7 | year. | ||||||
8 | "Qualified production facility" means a facility located | ||||||
9 | in the State in which live theatrical productions are, or are | ||||||
10 | intended to be, exclusively presented that contains at least | ||||||
11 | one stage, a seating capacity of 1,200 or more seats, and | ||||||
12 | dressing rooms, storage areas, and other ancillary amenities | ||||||
13 | necessary for the accredited theater production. | ||||||
14 | "Tax credit award" means the issuance to a taxpayer by the | ||||||
15 | Department of a tax credit award in conformance with Sections | ||||||
16 | 10-40 and 10-45 of this Act. | ||||||
17 | "Tax year" means a calendar year for the period January 1 | ||||||
18 | to and including December 31.
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19 | Section 10-15. Powers of the Department. The Department, in | ||||||
20 | addition to those powers granted under the Civil Administrative | ||||||
21 | Code of Illinois, is granted and has all the powers necessary | ||||||
22 | or convenient to carry out and effectuate the purposes and | ||||||
23 | provisions of this Act, including, but not limited to, the | ||||||
24 | power and authority to: | ||||||
25 | (1) adopt rules deemed necessary and appropriate for |
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1 | the administration of the Tax Credit Award program; | ||||||
2 | establish forms for applications, notifications, | ||||||
3 | contracts, or any other agreements; and accept | ||||||
4 | applications at any time during the year; | ||||||
5 | (2) assist applicants pursuant to the provisions of | ||||||
6 | this Act to promote, foster, and support live theater | ||||||
7 | development and production and its related job creation or | ||||||
8 | retention within the State; | ||||||
9 | (3) gather information and conduct inquiries, in the | ||||||
10 | manner and by the methods set forth in this Act, required | ||||||
11 | for the Department to comply with Section 10-40 and, | ||||||
12 | without limitation, obtain information with respect to | ||||||
13 | applicants for the purpose of making any designations or | ||||||
14 | certifications necessary or desirable to assist the | ||||||
15 | Department with any recommendation or guidance in the | ||||||
16 | furtherance of the purposes of this Act and relating to | ||||||
17 | applicants' participation in training, education, and | ||||||
18 | recruitment programs that are organized in cooperation | ||||||
19 | with Illinois colleges and universities or labor | ||||||
20 | organizations designed to promote and encourage the | ||||||
21 | training and hiring of Illinois residents who represent the | ||||||
22 | diversity of the Illinois population; | ||||||
23 | (4) provide for sufficient personnel to permit | ||||||
24 | administrative, staffing, operating, and related support | ||||||
25 | required to adequately discharge its duties and | ||||||
26 | responsibilities described in this Act from funds as may be |
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1 | appropriated by the General Assembly for the | ||||||
2 | administration of this Act; and | ||||||
3 | (5) require that the applicant at all times keep proper | ||||||
4 | books and records of accounts relating to the tax credit | ||||||
5 | award, in accordance with generally accepted accounting | ||||||
6 | principles consistently applied, and make, upon reasonable | ||||||
7 | written request by the Department, those books and records | ||||||
8 | available for reasonable Department inspection and audit | ||||||
9 | during the applicant's normal business hours. Any | ||||||
10 | documents or data made available to or received from the | ||||||
11 | applicant by any agent, employee, officer, or service | ||||||
12 | provider to the Department shall be deemed confidential and | ||||||
13 | shall not constitute public records to the extent that the | ||||||
14 | documents or data consist of commercial or financial | ||||||
15 | information regarding the operation by the applicant of any | ||||||
16 | theater or any accredited theater production, or any | ||||||
17 | recipient of any tax credit award under this Act.
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18 | Section 10-20. Tax credit award. Subject to the conditions | ||||||
19 | set forth in this Act, an applicant is entitled to a tax credit | ||||||
20 | award as approved by the Department for qualifying Illinois | ||||||
21 | labor expenditures and Illinois production spending for each | ||||||
22 | tax year in which the applicant is awarded an accredited | ||||||
23 | theater production certificate issued by the Department. The | ||||||
24 | amount of tax credits awarded pursuant to this Act shall not | ||||||
25 | exceed $2,000,000 in any fiscal year. Credits shall be awarded |
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1 | on a first-come, first-served basis. Notwithstanding the | ||||||
2 | foregoing, if the amount of credits applied for in any fiscal | ||||||
3 | year exceeds the amount authorized to be awarded under this | ||||||
4 | Section, the excess credit amount shall be awarded in the next | ||||||
5 | fiscal year in which credits remain available for award and | ||||||
6 | shall be treated as having been applied for on the first day of | ||||||
7 | that fiscal year.
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8 | Section 10-25. Application for certification of accredited | ||||||
9 | theater production. Any applicant proposing an accredited | ||||||
10 | theater production located or planned to be located in Illinois | ||||||
11 | may request an accredited theater production certificate by | ||||||
12 | application to the Department.
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13 | Section 10-30. Review of application for accredited | ||||||
14 | theater production certificate. | ||||||
15 | (a) The Department shall issue an accredited theater | ||||||
16 | production certificate to an applicant if it finds that by a | ||||||
17 | preponderance the following conditions exist: | ||||||
18 | (1) the applicant intends to make the expenditure in | ||||||
19 | the State required for certification of the accredited | ||||||
20 | theater production; | ||||||
21 | (2) the applicant's accredited theater production is | ||||||
22 | economically sound and will benefit the people of the State | ||||||
23 | of Illinois by increasing opportunities for employment and | ||||||
24 | will strengthen the economy of Illinois; |
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1 | (3) the following requirements related to the | ||||||
2 | implementation of a diversity plan have been met: (i) the | ||||||
3 | applicant has filed with the Department a diversity plan | ||||||
4 | outlining specific goals for hiring Illinois labor | ||||||
5 | expenditure eligible minority persons and females, as | ||||||
6 | defined in the Business Enterprise for Minorities, | ||||||
7 | Females, and Persons with Disabilities Act, and for using | ||||||
8 | vendors receiving certification under the Business | ||||||
9 | Enterprise for Minorities, Females, and Persons with | ||||||
10 | Disabilities Act; (ii) the Department has approved the plan | ||||||
11 | as meeting the requirements established by the Department | ||||||
12 | and verified that the applicant has met or made good faith | ||||||
13 | efforts in achieving those goals; and (iii) the Department | ||||||
14 | has adopted any rules that are necessary to ensure | ||||||
15 | compliance with the provisions set forth in this paragraph | ||||||
16 | and necessary to require that the applicant's plan reflects | ||||||
17 | the diversity of the population of this State; | ||||||
18 | (4) the applicant's accredited theater production | ||||||
19 | application indicates whether the applicant intends to | ||||||
20 | participate in training, education, and recruitment | ||||||
21 | programs that are organized in cooperation with Illinois | ||||||
22 | colleges and universities, labor organizations, and the | ||||||
23 | holders of accredited theater production certificates and | ||||||
24 | are designed to promote and encourage the training and | ||||||
25 | hiring of Illinois residents who represent the diversity of | ||||||
26 | Illinois; |
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1 | (5) if not for the tax credit award, the applicant's | ||||||
2 | accredited theater production would not occur in Illinois, | ||||||
3 | which may be demonstrated by any means, including, but not | ||||||
4 | limited to, evidence that: (i) the applicant, presenter, | ||||||
5 | owner, or licensee of the production rights has other state | ||||||
6 | or international location options at which to present the | ||||||
7 | production and could reasonably and efficiently locate | ||||||
8 | outside of the State, (ii) at least one other state or | ||||||
9 | nation could be considered for the production, (iii) the | ||||||
10 | receipt of the tax award credit is a major factor in the | ||||||
11 | decision of the applicant, presenter, production owner or | ||||||
12 | licensee as to where the production will be presented and | ||||||
13 | that without the tax credit award the applicant likely | ||||||
14 | would not create or retain jobs in Illinois, or (iv) | ||||||
15 | receipt of the tax credit award is essential to the | ||||||
16 | applicant's decision to create or retain new jobs in the | ||||||
17 | State; and | ||||||
18 | (6) the tax credit award will result in an overall | ||||||
19 | positive impact to the State, as determined by the | ||||||
20 | Department using the best available data. | ||||||
21 | (b) If any of the provisions in this Section conflict with | ||||||
22 | any existing collective bargaining agreements, the terms and | ||||||
23 | conditions of those collective bargaining agreements shall | ||||||
24 | control.
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25 | (c) The Department shall act expeditiously regarding | ||||||
26 | approval of applications for accredited theater production |
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1 | certificates so as to accommodate the pre-production work, | ||||||
2 | booking, commencement of ticket sales, determination of | ||||||
3 | performance dates, load in, and other matters relating to the | ||||||
4 | live theater productions for which approval is sought.
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5 | Section 10-35. Training programs for skills in critical | ||||||
6 | demand. To accomplish the purposes of this Act, the Department | ||||||
7 | may use the training programs provided under Section 605-800 of | ||||||
8 | the Department of Commerce and Economic Opportunity Law of the | ||||||
9 | Civil Administrative Code of Illinois.
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10 | Section 10-40. Issuance of Tax Credit Award Certificate.
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11 | (a) In order to qualify for a tax credit award under this | ||||||
12 | Act, an applicant must file an application for each accredited | ||||||
13 | theater production at each of the applicant's qualified | ||||||
14 | production facilities, on forms prescribed by the Department, | ||||||
15 | providing information necessary to calculate the tax credit | ||||||
16 | award and any additional information as reasonably required by | ||||||
17 | the Department. | ||||||
18 | (b) Upon satisfactory review of the application, the | ||||||
19 | Department shall issue a tax credit award certificate stating | ||||||
20 | the amount of the tax credit award to which the applicant is | ||||||
21 | entitled for that tax year and shall contemporaneously notify | ||||||
22 | the applicant and Illinois Department of Revenue in accordance | ||||||
23 | with Section 222 of the Illinois Income Tax Act.
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1 | Section 10-45. Amount and payment of the tax credit award. | ||||||
2 | The tax credit award shall be calculated each tax year based | ||||||
3 | upon the filing by the applicant on forms prescribed by the | ||||||
4 | Department containing information regarding qualifying and | ||||||
5 | quantified Illinois labor expenditures, as defined in Section | ||||||
6 | 10-10, net of the limitation in that Section, and Illinois | ||||||
7 | production spending, as defined in Section 10-10, net of the | ||||||
8 | limitation in that Section. From the amount calculated, the | ||||||
9 | applicant shall be entitled to receive a tax credit award of up | ||||||
10 | to: | ||||||
11 | (1) 20% of the Illinois labor expenditures for each tax | ||||||
12 | year; plus | ||||||
13 | (2) 20% of the Illinois production spending for each | ||||||
14 | tax year; plus | ||||||
15 | (3) 15% of the Illinois labor expenditures generated by | ||||||
16 | the employment of Illinois residents in geographic areas of | ||||||
17 | high poverty or high unemployment in each tax year, as | ||||||
18 | determined by the Department. | ||||||
19 | Following the Department's determination of the tax credit | ||||||
20 | award, the Department shall issue the tax credit award to the | ||||||
21 | applicant.
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22 | Section 10-50. Live theater tax credit award program | ||||||
23 | evaluation and reports. | ||||||
24 | (a) The Department's live theater tax credit award | ||||||
25 | evaluation must include: |
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1 | (i) an assessment of the effectiveness of the program | ||||||
2 | in creating and retaining new jobs in Illinois; | ||||||
3 | (ii) an assessment of the revenue impact of the | ||||||
4 | program; | ||||||
5 | (iii) in the discretion of the Department, a review of | ||||||
6 | the practices and experiences of other states or nations | ||||||
7 | with similar programs; and | ||||||
8 | (iv) an assessment of the overall success of the | ||||||
9 | program. The Department may make a recommendation to | ||||||
10 | extend, modify, or not extend the program based on the | ||||||
11 | evaluation. | ||||||
12 | (b) At the end of each fiscal quarter, the Department shall | ||||||
13 | submit to the General Assembly a report that includes, without | ||||||
14 | limitation: | ||||||
15 | (i) an assessment of the economic impact of the | ||||||
16 | program, including the number of jobs created and retained, | ||||||
17 | and whether the job positions are entry level, management, | ||||||
18 | vendor, or production related; | ||||||
19 | (ii) the amount of accredited theater production | ||||||
20 | spending brought to Illinois, including the amount of | ||||||
21 | spending and type of Illinois vendors hired in connection | ||||||
22 | with an accredited theater production; and | ||||||
23 | (iii) a determination of whether those receiving | ||||||
24 | qualifying Illinois labor expenditure salaries or wages | ||||||
25 | reflect the geographical, racial and ethnic, gender, and | ||||||
26 | income level diversity of the State of Illinois. |
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1 | (c) At the end of each fiscal year, the Department shall | ||||||
2 | submit to the General Assembly a report that includes, without | ||||||
3 | limitation: | ||||||
4 | (i) the identification of each vendor that provided | ||||||
5 | goods or services that were included in an accredited | ||||||
6 | theater production's Illinois production spending; | ||||||
7 | (ii) a statement of the amount paid to each identified | ||||||
8 | vendor by the accredited theater production and whether the | ||||||
9 | vendor is a minority or female owned business as defined in | ||||||
10 | Section 2 of the Business Enterprise for Minorities, | ||||||
11 | Females, and Persons with Disabilities Act; and | ||||||
12 | (iii) a description of the steps taken by the | ||||||
13 | Department to encourage accredited theater productions to | ||||||
14 | use vendors who are minority or female owned businesses.
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15 | Section 10-55. Program terms and conditions. Any | ||||||
16 | documentary materials or data made available or received from | ||||||
17 | an applicant by any agent or employee of the Department are | ||||||
18 | confidential and are not public records to the extent that the | ||||||
19 | materials or data consist of commercial or financial | ||||||
20 | information regarding the operation of or the production of the | ||||||
21 | applicant or recipient of any tax credit award under this Act.
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22 | Section 10-80. The Illinois Income Tax Act is amended by | ||||||
23 | adding Section 222 as follows:
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1 | (35 ILCS 5/222 new) | ||||||
2 | Sec. 222. Live theater production credit. | ||||||
3 | (a) For tax years beginning on or after January 1, 2012, a | ||||||
4 | taxpayer who has received a tax credit award under the Live | ||||||
5 | Theater Production Tax Credit Act is entitled to a credit | ||||||
6 | against the taxes imposed under subsections (a) and (b) of | ||||||
7 | Section 201 of this Act in an amount determined under that Act | ||||||
8 | by the Department of Commerce and Economic Opportunity. | ||||||
9 | (b) If the taxpayer is a partnership, limited liability | ||||||
10 | partnership, limited liability company, or Subchapter S | ||||||
11 | corporation, the tax credit award is allowed to the partners, | ||||||
12 | unit holders, or shareholders in accordance with the | ||||||
13 | determination of income and distributive share of income under | ||||||
14 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
15 | Code. | ||||||
16 | (c) A sale, assignment, or transfer of the tax credit award | ||||||
17 | may be made by the taxpayer earning the credit within one year | ||||||
18 | after the credit is awarded in accordance with rules adopted by | ||||||
19 | the Department of Commerce and Economic Opportunity. | ||||||
20 | (d) The Department of Revenue, in cooperation with the | ||||||
21 | Department of Commerce and Economic Opportunity, shall adopt | ||||||
22 | rules to enforce and administer the provisions of this Section. | ||||||
23 | (e) The tax credit award may not be carried back. If the | ||||||
24 | amount of the credit exceeds the tax liability for the year, | ||||||
25 | the excess may be carried forward and applied to the tax | ||||||
26 | liability of the 5 tax years following the excess credit year. |
| |||||||
| |||||||
1 | The tax credit award shall be applied to the earliest year for | ||||||
2 | which there is a tax liability. If there are credits from more | ||||||
3 | than one tax year that are available to offset liability, the | ||||||
4 | earlier credit shall be applied first. In no event may a credit | ||||||
5 | under this Section reduce the taxpayer's liability to less than | ||||||
6 | zero.
| ||||||
7 | Article 15. Amendatory Provisions | ||||||
8 | Section 15-5. The Economic Development Area Tax Increment | ||||||
9 | Allocation Act is amended by changing Sections 3, 4, 5, 8, 9, | ||||||
10 | and 11 and by adding Sections 4.5 and 4.7 as follows:
| ||||||
11 | (20 ILCS 620/3) (from Ch. 67 1/2, par. 1003)
| ||||||
12 | Sec. 3. Definitions. In this Act, words or terms shall have | ||||||
13 | the
following meanings unless the context or usage clearly | ||||||
14 | indicates that another
meaning is intended.
| ||||||
15 | (a) "Department" means the Department of Commerce and | ||||||
16 | Economic Opportunity.
| ||||||
17 | (b) "Economic development plan" means the written plan of a | ||||||
18 | municipality
which sets forth an economic development program | ||||||
19 | for an economic
development project area. Each economic | ||||||
20 | development plan shall include but
not be limited to (1) | ||||||
21 | estimated economic development project costs, (2)
the sources | ||||||
22 | of funds to pay such costs, (3) the nature and term of any
| ||||||
23 | obligations to be issued by the municipality to pay such costs, |
| |||||||
| |||||||
1 | (4) the
most recent equalized assessed valuation of the | ||||||
2 | economic development project
area,
(5) an estimate of the | ||||||
3 | equalized assessed valuation of the economic
development | ||||||
4 | project area after completion of an economic development | ||||||
5 | project,
(6) the estimated date of completion of any economic | ||||||
6 | development project
proposed to be undertaken, (7) a general | ||||||
7 | description of any proposed
developer, user, or tenant of any | ||||||
8 | property to be located or improved
within the economic | ||||||
9 | development project area, (8) a description of the
type, | ||||||
10 | structure and general character of the facilities to be | ||||||
11 | developed or
improved in the economic development project area, | ||||||
12 | (9) a description of the
general land uses to apply in the
| ||||||
13 | economic development project area, (10) a description of the | ||||||
14 | type, class and
number of employees to be employed in the | ||||||
15 | operation of the facilities to be
developed or improved in the | ||||||
16 | economic development project area, and (11) a
commitment by the | ||||||
17 | municipality to fair
employment practices and an affirmative | ||||||
18 | action plan with respect to any
economic development program to | ||||||
19 | be undertaken by the municipality.
| ||||||
20 | (c) "Economic development project" means any development | ||||||
21 | project in
furtherance of the objectives of this Act.
| ||||||
22 | (d) "Economic development project area" means any improved | ||||||
23 | or vacant
area which (1) is located within or partially within | ||||||
24 | or partially without
the territorial limits of a municipality, | ||||||
25 | provided that no area without the
territorial limits of a | ||||||
26 | municipality shall be included in an economic
development |
| |||||||
| |||||||
1 | project area without the express consent of the Department,
| ||||||
2 | acting as agent for the State, (2) is contiguous, (3) is not | ||||||
3 | less in the
aggregate than three hundred twenty acres, (4) is | ||||||
4 | suitable for siting by any
commercial, manufacturing, | ||||||
5 | industrial, research or transportation
enterprise of | ||||||
6 | facilities to include but not be limited to commercial
| ||||||
7 | businesses, offices, factories, mills, processing plants, | ||||||
8 | assembly plants,
packing plants, fabricating plants, | ||||||
9 | industrial or commercial distribution
centers, warehouses, | ||||||
10 | repair overhaul or service facilities, freight
terminals, | ||||||
11 | research facilities, test facilities or transportation
| ||||||
12 | facilities, whether or not such area has been used at any time | ||||||
13 | for such
facilities and whether or not the area has been used | ||||||
14 | or is suitable for
other uses, including commercial | ||||||
15 | agricultural purposes, and (5) which has
been approved and | ||||||
16 | certified by the Department pursuant to this Act.
| ||||||
17 | (e) "Economic development project costs" mean and include | ||||||
18 | the sum total
of all reasonable or necessary costs incurred by | ||||||
19 | a municipality incidental
to an economic development project, | ||||||
20 | including, without limitation, the following:
| ||||||
21 | (1) Costs of studies, surveys, development of plans and | ||||||
22 | specifications,
implementation and administration of an | ||||||
23 | economic development plan, personnel
and professional service | ||||||
24 | costs for architectural, engineering, legal,
marketing, | ||||||
25 | financial, planning, police, fire, public works or other
| ||||||
26 | services, provided that no charges for professional services |
| |||||||
| |||||||
1 | may be based
on a percentage of incremental tax revenues;
| ||||||
2 | (2) Property assembly costs within an economic development | ||||||
3 | project
area, including but not limited to acquisition of land | ||||||
4 | and other real or
personal property or rights or interests | ||||||
5 | therein, and specifically
including payments to developers or | ||||||
6 | other nongovernmental persons as
reimbursement for property | ||||||
7 | assembly costs incurred by such developer or
other | ||||||
8 | nongovernmental person;
| ||||||
9 | (3) Site preparation costs, including but not limited to | ||||||
10 | clearance of
any area within an economic development project | ||||||
11 | area by demolition or
removal of any existing buildings, | ||||||
12 | structures, fixtures, utilities and
improvements and clearing | ||||||
13 | and grading; and including installation, repair,
construction, | ||||||
14 | reconstruction, or relocation of public streets, public
| ||||||
15 | utilities, and other public site improvements within or without | ||||||
16 | an economic
development project area which are essential to the | ||||||
17 | preparation of the
economic development project area for use in | ||||||
18 | accordance with an economic
development plan; and specifically | ||||||
19 | including payments to developers or
other nongovernmental | ||||||
20 | persons as reimbursement for site preparation costs incurred by | ||||||
21 | such
developer or nongovernmental person;
| ||||||
22 | (4) Costs of renovation, rehabilitation, reconstruction, | ||||||
23 | relocation,
repair or remodeling of any existing buildings, | ||||||
24 | improvements, and fixtures
within an economic development | ||||||
25 | project area, and specifically including
payments to | ||||||
26 | developers or other nongovernmental persons as reimbursement
|
| |||||||
| |||||||
1 | for such costs incurred by such developer or nongovernmental | ||||||
2 | person;
| ||||||
3 | (5) Costs of construction , acquisition, and operation | ||||||
4 | within an economic development project area of
public | ||||||
5 | improvements, including but not limited to, publicly-owned | ||||||
6 | buildings, structures,
works, utilities or fixtures; provided | ||||||
7 | that no allocation made to the municipality pursuant to | ||||||
8 | subparagraph (A) of paragraph (2) of subsection (g) of Section | ||||||
9 | 4 of this Act or subparagraph (A) of paragraph (4) of | ||||||
10 | subsection (g) of Section 4 of this Act shall be used to | ||||||
11 | operate a convention center or similar entertainment complex or | ||||||
12 | venue;
| ||||||
13 | (6) Financing costs, including but not limited to all | ||||||
14 | necessary and
incidental expenses related to the issuance of | ||||||
15 | obligations, payment of any
interest on any obligations issued | ||||||
16 | hereunder which accrues during the
estimated period of | ||||||
17 | construction of any economic development project for
which such | ||||||
18 | obligations are issued and for not exceeding 36 months
| ||||||
19 | thereafter, and any reasonable reserves related to the issuance | ||||||
20 | of such obligations;
| ||||||
21 | (7) All or a portion of a taxing district's capital costs | ||||||
22 | resulting
from an economic development project necessarily | ||||||
23 | incurred or estimated to
be incurred by a taxing district in | ||||||
24 | the furtherance of the objectives of an
economic development | ||||||
25 | project, to the extent that the municipality by
written | ||||||
26 | agreement accepts and approves such costs;
|
| |||||||
| |||||||
1 | (8) Relocation costs to the extent that a municipality | ||||||
2 | determines
that relocation costs shall be paid or is required | ||||||
3 | to make payment of
relocation costs by federal or State law;
| ||||||
4 | (9) The estimated tax revenues from real property in an | ||||||
5 | economic
development project area acquired by a municipality | ||||||
6 | which,
according to the economic development plan, is to be | ||||||
7 | used for a private
use and which any taxing district would have | ||||||
8 | received had the municipality
not adopted tax increment | ||||||
9 | allocation financing for an economic development
project area | ||||||
10 | and which would result from such taxing district's levies made
| ||||||
11 | after the time of the adoption by the municipality of tax | ||||||
12 | increment
allocation financing to the time the current | ||||||
13 | equalized assessed value of
real property in the economic | ||||||
14 | development project area exceeds the total
initial equalized | ||||||
15 | value of real property in said area;
| ||||||
16 | (10) Costs of job training, advanced vocational or career | ||||||
17 | education,
including but not limited to courses in | ||||||
18 | occupational, semi-technical or
technical fields leading | ||||||
19 | directly to employment, incurred by one or more
taxing | ||||||
20 | districts, provided that such costs are related to the | ||||||
21 | establishment
and maintenance of additional job training, | ||||||
22 | advanced vocational education
or career education programs for | ||||||
23 | persons employed or to be employed by
employers located in an | ||||||
24 | economic development project area, and further
provided that | ||||||
25 | when such costs are incurred by a taxing district or taxing
| ||||||
26 | districts other than the municipality they shall be set forth |
| |||||||
| |||||||
1 | in a written
agreement by or among the municipality and the | ||||||
2 | taxing district or taxing
districts, which agreement describes | ||||||
3 | the program to be undertaken,
including but not limited to the | ||||||
4 | number of employees to be trained, a
description of the | ||||||
5 | training and services to be provided, the number and
type of | ||||||
6 | positions available or to be available, itemized costs of the
| ||||||
7 | program and sources of funds to pay the same, and the term of | ||||||
8 | the
agreement. Such costs include, specifically, the payment by | ||||||
9 | community
college districts of costs pursuant to Sections 3-37, | ||||||
10 | 3-38, 3-40 and 3-40.1
of the Public Community College Act and | ||||||
11 | by school districts of costs
pursuant to Sections 10-22.20a and | ||||||
12 | 10-23.3a of The School Code;
| ||||||
13 | (11) Private financing costs incurred by developers or | ||||||
14 | other
nongovernmental persons in connection with an economic | ||||||
15 | development project,
and specifically including payments to | ||||||
16 | developers or other nongovernmental
persons as reimbursement | ||||||
17 | for such costs incurred by such developer or other
| ||||||
18 | nongovernmental person, provided that:
| ||||||
19 | (A) private financing costs shall be
paid or reimbursed by | ||||||
20 | a municipality
only pursuant to the prior official action of | ||||||
21 | the municipality evidencing
an intent to pay or reimburse such | ||||||
22 | private financing costs;
| ||||||
23 | (B) except as provided in subparagraph (D), the aggregate | ||||||
24 | amount of
such costs paid or reimbursed by a municipality in | ||||||
25 | any one year shall not exceed 30%
of such costs paid or | ||||||
26 | incurred by the developer or other nongovernmental
person in |
| |||||||
| |||||||
1 | that year;
| ||||||
2 | (C) private financing costs shall be paid or reimbursed by | ||||||
3 | a
municipality solely from the special tax allocation
fund | ||||||
4 | established pursuant to this Act and shall not be paid or | ||||||
5 | reimbursed from the
proceeds of any obligations issued by a | ||||||
6 | municipality;
| ||||||
7 | (D) if there are not sufficient funds available in the | ||||||
8 | special tax
allocation fund in any year to make such payment or | ||||||
9 | reimbursement in full, any amount of
such interest cost | ||||||
10 | remaining to be paid or reimbursed by a municipality
shall | ||||||
11 | accrue and be
payable when funds are available in
the special | ||||||
12 | tax allocation fund to make such payment; and
| ||||||
13 | (E) in connection with its approval and certification of an | ||||||
14 | economic
development project pursuant to Section 5 of this Act, | ||||||
15 | the Department shall
review any agreement authorizing the | ||||||
16 | payment or reimbursement by a municipality of private
financing | ||||||
17 | costs in its consideration of the impact on the revenues of the
| ||||||
18 | municipality and the affected taxing districts of the use of | ||||||
19 | tax increment
allocation financing.
| ||||||
20 | (f) "Municipality" means a city, village or incorporated | ||||||
21 | town.
| ||||||
22 | (g) "Obligations" means any instrument evidencing the | ||||||
23 | obligation of a
municipality to pay money, including without | ||||||
24 | limitation, bonds, notes,
installment or financing contracts, | ||||||
25 | certificates, tax anticipation warrants
or notes, vouchers, | ||||||
26 | and any other evidence of indebtedness.
|
| |||||||
| |||||||
1 | (h) "Taxing districts" means counties, townships, | ||||||
2 | municipalities, and
school, road, park, sanitary, mosquito | ||||||
3 | abatement, forest preserve, public
health, fire protection, | ||||||
4 | river conservancy, tuberculosis sanitarium and any
other | ||||||
5 | municipal corporations or districts with the power to levy | ||||||
6 | taxes upon property located within the economic development | ||||||
7 | project area .
| ||||||
8 | (Source: P.A. 94-793, eff. 5-19-06.)
| ||||||
9 | (20 ILCS 620/4) (from Ch. 67 1/2, par. 1004)
| ||||||
10 | Sec. 4.
Establishment of economic development project | ||||||
11 | areas;
ordinance; notice; hearing; changes in economic | ||||||
12 | development plan. Economic
development project areas shall be | ||||||
13 | established as follows:
| ||||||
14 | (a) The corporate authorities of a municipality shall by | ||||||
15 | ordinance
propose the establishment of an economic development | ||||||
16 | project area
and fix a
time and place for a public hearing, and | ||||||
17 | shall submit a certified copy of
the ordinance as adopted to | ||||||
18 | the Department.
| ||||||
19 | (b) (1) Notice of the public hearing shall be given by | ||||||
20 | publication and
mailing. Notice by publication shall be given | ||||||
21 | by publication at least
twice, the first publication to be not | ||||||
22 | more than 30 nor less than 10 days
prior to the hearing in a | ||||||
23 | newspaper of general circulation within the taxing
districts | ||||||
24 | having property in the proposed economic development project
| ||||||
25 | area. Notice by mailing shall be given by depositing such |
| |||||||
| |||||||
1 | notice together
with a copy of the
proposed economic | ||||||
2 | development plan in the United States mails by
certified mail | ||||||
3 | addressed to the person or persons in whose name the general
| ||||||
4 | taxes for the last preceding year were paid on each lot, block, | ||||||
5 | tract, or
parcel of land lying within the economic development | ||||||
6 | project area. The
notice shall be mailed not less than 10 days | ||||||
7 | prior to the date set for the
public hearing. In the event | ||||||
8 | taxes for the last preceding year were not
paid, the notice | ||||||
9 | shall also be sent to the persons last listed on the tax
rolls | ||||||
10 | within the preceding 3 years as the owners of such property.
| ||||||
11 | (2) The notices issued pursuant to this Section shall | ||||||
12 | include the following:
| ||||||
13 | (A) The time and place of public hearing;
| ||||||
14 | (B) The boundaries of the proposed economic development | ||||||
15 | project area by
legal description and by street location where | ||||||
16 | possible;
| ||||||
17 | (C) A notification that all interested persons will be | ||||||
18 | given an
opportunity to be heard at the public hearing;
| ||||||
19 | (D) An invitation for any person to submit alternative | ||||||
20 | proposals or bids
for any proposed conveyance, lease, mortgage | ||||||
21 | or other disposition of land
within the proposed economic | ||||||
22 | development project area;
| ||||||
23 | (E) A description of the economic development plan or | ||||||
24 | economic
development project if a
plan or project
is a subject | ||||||
25 | matter of the hearing; and
| ||||||
26 | (F) Such other matters as the municipality may deem |
| |||||||
| |||||||
1 | appropriate.
| ||||||
2 | (3) Not less than 30 days prior to the date set for | ||||||
3 | hearing, the
municipality shall give notice by mail as provided | ||||||
4 | in this subsection (b)
to all taxing districts, of which | ||||||
5 | taxable property is included in the
economic development | ||||||
6 | project area, and to the Department. In addition to
the other | ||||||
7 | requirements under this subsection (b), the notice shall | ||||||
8 | include
an invitation to the Department and each taxing | ||||||
9 | district to submit comments
to the municipality concerning the | ||||||
10 | subject matter of the hearing prior to
the date of hearing.
| ||||||
11 | (c) At the public hearing any interested person, the | ||||||
12 | Department or any
affected taxing district may file written | ||||||
13 | objections with the municipal clerk
and may be heard orally | ||||||
14 | with respect to any issues embodied in
the notice. The | ||||||
15 | municipality shall hear and determine all alternate
proposals | ||||||
16 | or bids for any proposed conveyance, lease, mortgage or other
| ||||||
17 | disposition of land and all protests and
objections at the | ||||||
18 | hearing, and the hearing may be adjourned to another date
| ||||||
19 | without further notice other than a motion to be entered upon | ||||||
20 | the minutes
fixing the time and place of the adjourned hearing.
| ||||||
21 | Public hearings with regard to an economic development plan, | ||||||
22 | economic
development project area, or economic development | ||||||
23 | project may be held simultaneously.
| ||||||
24 | (d) At the public hearing or at any time prior to the | ||||||
25 | adoption by the
municipality of an ordinance approving an | ||||||
26 | economic development plan, the
municipality may make changes in |
| |||||||
| |||||||
1 | the economic development plan.
Changes which (1) alter the
| ||||||
2 | exterior boundaries of the proposed economic development | ||||||
3 | project area,
(2) substantially affect the general land uses | ||||||
4 | established in the proposed
economic development plan, (3) | ||||||
5 | substantially change the nature of the
proposed economic | ||||||
6 | development project, (4) change the general description of
any | ||||||
7 | proposed developer, user or tenant of any property to be | ||||||
8 | located or
improved within the economic development project | ||||||
9 | area, or (5) change the
description of the type, class and | ||||||
10 | number of employees to be employed in
the operation of the | ||||||
11 | facilities to be developed or improved within the
economic | ||||||
12 | development project area shall be made only after notice and
| ||||||
13 | hearing pursuant to the procedures set forth in this Section.
| ||||||
14 | Changes which
do not (1) alter the exterior boundaries of a | ||||||
15 | proposed economic development project area,
(2) substantially | ||||||
16 | affect the general land uses established in the proposed
| ||||||
17 | economic development plan, (3) substantially change the nature | ||||||
18 | of the proposed economic
development project, (4) change the | ||||||
19 | general description of any proposed
developer, user or tenant | ||||||
20 | of any property to be located or improved within
the economic | ||||||
21 | development project area, or (5) change the description of the
| ||||||
22 | type, class and number of employees to be employed in the | ||||||
23 | operation of the
facilities to be
developed or improved within | ||||||
24 | the economic development project area may be
made without | ||||||
25 | further hearing, provided that
the municipality shall give | ||||||
26 | notice of its changes by mail to the Department
and to each |
| |||||||
| |||||||
1 | affected taxing district and by publication in a newspaper or
| ||||||
2 | newspapers of general circulation within the affected taxing | ||||||
3 | districts.
Such notice by mail and by publication shall each | ||||||
4 | occur not later than 10
days following the adoption by | ||||||
5 | ordinance of such changes.
| ||||||
6 | (e) At any time within 30 days of the final adjournment of | ||||||
7 | the
public hearing, a municipality may, by ordinance, approve | ||||||
8 | the economic
development plan, establish the economic | ||||||
9 | development project area, and
authorize tax increment
| ||||||
10 | allocation financing for such economic development project | ||||||
11 | area. Any
ordinance adopted which approves an economic | ||||||
12 | development plan shall
contain findings that the developer or | ||||||
13 | any of its successor entities and its subsidiaries economic | ||||||
14 | development project
shall create or retain
not less than 4,250 | ||||||
15 | 2,000 full-time equivalent jobs, that private investment in an
| ||||||
16 | amount not less than $100,000,000 shall occur in the
economic | ||||||
17 | development project area, that the economic development | ||||||
18 | project
will encourage the increase of commerce and industry | ||||||
19 | within the State,
thereby reducing the evils attendant upon | ||||||
20 | unemployment and increasing
opportunities for personal income, | ||||||
21 | and that the economic
development project will increase or | ||||||
22 | maintain the property, sales and
income tax bases of the | ||||||
23 | municipality and of the State. Any ordinance
adopted which | ||||||
24 | establishes an economic development project area shall
contain | ||||||
25 | the boundaries of such area by legal description and, where
| ||||||
26 | possible, by street location. Any ordinance adopted which |
| |||||||
| |||||||
1 | authorizes tax
increment allocation financing shall provide | ||||||
2 | that the ad valorem taxes, if
any, arising from the levies upon | ||||||
3 | taxable real property in such economic
development project area | ||||||
4 | by taxing districts and tax rates determined in
the manner | ||||||
5 | provided in subsection (b) of Section 6 of this Act each year
| ||||||
6 | after the effective date of the ordinance until economic | ||||||
7 | development
project costs and all municipal obligations | ||||||
8 | financing economic development
project costs incurred under | ||||||
9 | this Act have been paid shall be divided as follows:
| ||||||
10 | (1) That portion of taxes levied upon each taxable lot, | ||||||
11 | block, tract or
parcel of real property which is attributable | ||||||
12 | to the lower of the current
equalized assessed value or the | ||||||
13 | initial equalized assessed value of each
such taxable lot, | ||||||
14 | block, tract or parcel of real property in the economic
| ||||||
15 | development project area shall be allocated to and when | ||||||
16 | collected shall be
paid by the county collector to the | ||||||
17 | respective affected taxing districts in
the manner required by | ||||||
18 | law in the absence of the adoption of tax increment
allocation | ||||||
19 | financing.
| ||||||
20 | (2) That portion, if any, of such taxes which is | ||||||
21 | attributable to the
increase in the current equalized assessed | ||||||
22 | valuation of each taxable lot,
block, tract or parcel of real | ||||||
23 | property in the economic development project
area over and | ||||||
24 | above the initial equalized assessed value of each property
in | ||||||
25 | the economic development project area shall be allocated to and | ||||||
26 | when
collected shall be paid to the municipal treasurer who |
| |||||||
| |||||||
1 | shall deposit such
taxes into a special fund called the special | ||||||
2 | tax allocation fund of the
municipality for the purpose of | ||||||
3 | paying economic development project costs
and obligations | ||||||
4 | incurred in the payment thereof.
| ||||||
5 | (f) After a municipality has by ordinance approved an | ||||||
6 | economic
development plan and established an economic | ||||||
7 | development project area,
the plan may be amended and the
| ||||||
8 | boundaries of the area may be altered only as herein provided.
| ||||||
9 | Amendments which (1) alter the exterior boundaries of an | ||||||
10 | economic development
project area, (2) substantially affect | ||||||
11 | the general land uses established pursuant to the
economic | ||||||
12 | development plan, (3) substantially change the
nature of the | ||||||
13 | economic development project, (4) change
the general | ||||||
14 | description
of any proposed developer, user, or tenant of any | ||||||
15 | property to be located or
improved within the economic | ||||||
16 | development project area, or (5) change the description
of the | ||||||
17 | type, class and number of employees to be employed in the | ||||||
18 | operation
of the facilities to be developed or improved within | ||||||
19 | the economic
development project area, shall be made only after
| ||||||
20 | notice and hearing pursuant to the procedures set forth in this | ||||||
21 | Section.
Amendments which do not
(1) alter the boundaries of | ||||||
22 | the economic
development project area,
(2) substantially | ||||||
23 | affect the general land uses established in the economic
| ||||||
24 | development plan, (3) substantially change the nature of the | ||||||
25 | economic development
project, (4) change the general | ||||||
26 | description of any proposed developer, user, or tenant
of any |
| |||||||
| |||||||
1 | property to be located or improved within the economic | ||||||
2 | development
project area, or (5) change the description of the | ||||||
3 | type, class and number of employees
to be employed in the | ||||||
4 | operation of the facilities
to be developed or improved within | ||||||
5 | the economic development project area
may be made without | ||||||
6 | further hearing, provided that
the municipality shall give
| ||||||
7 | notice of any amendment by mail to the Department and to each | ||||||
8 | taxing
district and by publication in a newspaper or newspapers | ||||||
9 | of
general circulation within the affected taxing districts. | ||||||
10 | Such notice by
mail and by publication shall each occur not | ||||||
11 | later than 10 days following
the adoption by ordinance of any | ||||||
12 | amendments. | ||||||
13 | (g) Extension of economic development project area; | ||||||
14 | allocations; payment of outstanding claims; changes in | ||||||
15 | equalized assessed valuation.
| ||||||
16 | (1) Notwithstanding anything to the contrary set forth in | ||||||
17 | this Act, upon the effective date of this amendatory Act of the | ||||||
18 | 97th General Assembly, the duration of any existing economic | ||||||
19 | development plan created pursuant to this Act is extended to | ||||||
20 | the duration permitted under this subsection, up to a maximum | ||||||
21 | duration of 15 years. | ||||||
22 | (2) For the purposes of this Section, real estate taxes | ||||||
23 | paid on property within the economic development project area | ||||||
24 | during calendar year 2013 and remitted to the developer and the | ||||||
25 | taxing districts in 2014 shall be the "base amount". Beginning | ||||||
26 | with real estate taxes remitted in 2014, for any economic |
| |||||||
| |||||||
1 | development plan extended by operation of item (1) of this | ||||||
2 | subsection (g), until such time as all existing obligations, as | ||||||
3 | that term is defined in item (5) of this subsection (g), have | ||||||
4 | been satisfied, the allocation of the special tax allocation | ||||||
5 | fund shall be as follows: | ||||||
6 | (A) All receipts up to the first $350,000 shall be | ||||||
7 | maintained by the municipality in an escrow account to be | ||||||
8 | used solely for (i) expenses relating to the reports | ||||||
9 | required by Section 4.7 of this Act and (ii) legal expenses | ||||||
10 | incurred in defense of any civil action brought against the | ||||||
11 | municipality relating to the economic development | ||||||
12 | agreement. The escrow account shall be within the scope of | ||||||
13 | the annual audit provided in Section 4.7 of this Act. Each | ||||||
14 | December 31 following a deposit into the escrow account, | ||||||
15 | any unobligated balance in the escrow account shall be | ||||||
16 | distributed to the taxing districts in the same manner and | ||||||
17 | proportion as the most recent distribution by the county | ||||||
18 | collector to the taxing districts in the economic | ||||||
19 | development project area. | ||||||
20 | (B) After the allocation required pursuant to | ||||||
21 | paragraph (A) of this item (2), the next $5,000,000 of the | ||||||
22 | receipts shall be allocated to the municipality. | ||||||
23 | (C) After the allocations required pursuant to | ||||||
24 | paragraphs (A) and (B) of this item (2), 55% of the | ||||||
25 | remaining receipts shall be allocated to the developer. | ||||||
26 | (D) After the allocations required pursuant to parts |
| |||||||
| |||||||
1 | (A) and (B) of this item (2), 45% of the remaining receipts | ||||||
2 | shall be allocated to the taxing districts located within | ||||||
3 | the economic development project area, excluding the | ||||||
4 | municipality. | ||||||
5 | (3) For real estate taxes paid in 2012 and remitted to the | ||||||
6 | developer and the taxing districts in 2013 and prior years, the | ||||||
7 | allocation formula contained in any economic development plan | ||||||
8 | in effect immediately prior to the effective date of this | ||||||
9 | amendatory Act of the 97th General Assembly shall apply. | ||||||
10 | (4) Beginning with real estate taxes paid in 2014 and | ||||||
11 | remitted to the developer and the taxing districts in 2015 and | ||||||
12 | each year thereafter, if the taxes paid within the economic | ||||||
13 | development project area change from the base amount, the | ||||||
14 | allocation of the special tax allocation fund shall be as | ||||||
15 | follows: | ||||||
16 | (A) If the amount of current year taxes paid is less | ||||||
17 | than the base amount, then the administrative escrow | ||||||
18 | account shall receive the first $350,000 of receipts, the | ||||||
19 | municipality shall receive the next $5,000,000 of | ||||||
20 | receipts, the developer shall receive 55% of receipts over | ||||||
21 | $5,350,000, and the remaining 45% of receipts over | ||||||
22 | $5,350,000 shall be distributed to the taxing districts | ||||||
23 | (excluding the municipality) in the same manner and | ||||||
24 | proportion as the most recent distribution by the county | ||||||
25 | collector to those taxing districts in the economic | ||||||
26 | development project area. |
| |||||||
| |||||||
1 | (B) If the amount of current year taxes paid is greater | ||||||
2 | than the base amount, then 75% of the increase in real | ||||||
3 | estate tax receipts shall be payable to the developer and | ||||||
4 | the remaining 25% of the increase in real estate tax | ||||||
5 | receipts shall be distributed to the taxing districts | ||||||
6 | (including the municipality) pursuant to the formula in | ||||||
7 | this subsection. | ||||||
8 | (5) After (i) all existing obligations and interest thereon | ||||||
9 | have been satisfied, (ii) any excess moneys have been | ||||||
10 | distributed pursuant to this subsection, and (iii) final | ||||||
11 | closing of the books and records of the economic development | ||||||
12 | project area has occurred, the municipality shall adopt an | ||||||
13 | ordinance dissolving the special tax allocation fund for the | ||||||
14 | economic development project area and terminating the | ||||||
15 | designation of the economic development project area as an | ||||||
16 | economic development project area. All excess moneys in the | ||||||
17 | special tax allocation fund shall be distributed to the taxing | ||||||
18 | districts in the same manner and proportion as the most recent | ||||||
19 | distribution by the county collector to those taxing districts | ||||||
20 | in the economic development project area. For the purpose of | ||||||
21 | this subsection (g), "existing obligations" means (i) the | ||||||
22 | obligations of the developer that existed before the base year, | ||||||
23 | as certified by a sworn affidavit of the principal financial | ||||||
24 | officer of the developer attesting that the amounts set forth | ||||||
25 | are true and correct, (ii) obligations of the municipality | ||||||
26 | relating to the payment of the obligations of the developer, |
| |||||||
| |||||||
1 | and (iii) any amounts payable by taxing districts to the | ||||||
2 | developer for property taxes determined to have been overpaid, | ||||||
3 | to the extent that those amounts payable have been carried | ||||||
4 | forward as an interest bearing note due to the developer. All | ||||||
5 | obligations of the developer due and payable shall be processed | ||||||
6 | and paid in the order received, with the oldest notes to be | ||||||
7 | processed and paid first. Beginning January 1, 2012, all | ||||||
8 | outstanding interest bearing notes shall bear interest at the | ||||||
9 | rate of 4% until paid. | ||||||
10 | (h) Beginning on the effective date of this amendatory Act | ||||||
11 | of the 97th General Assembly, the taxing districts shall meet | ||||||
12 | annually 180 days after the close of the municipal fiscal year, | ||||||
13 | or as soon as the economic development project audit for that | ||||||
14 | fiscal year becomes available, to review the effectiveness and | ||||||
15 | status of the economic development project area up to that | ||||||
16 | date. | ||||||
17 | (Source: P.A. 86-38.)
| ||||||
18 | (20 ILCS 620/4.5 new) | ||||||
19 | Sec. 4.5. Recapture. | ||||||
20 | (a) In the event that the developer terminates all of its | ||||||
21 | operations and vacates the redevelopment area within 60 months | ||||||
22 | after the effective date of this amendatory Act of the 97th | ||||||
23 | General Assembly, the developer shall be required to remit to | ||||||
24 | the Department an amount equal to the payments disbursed to the | ||||||
25 | developer in 2014 and subsequent years under the Agreement. |
| |||||||
| |||||||
1 | Within 30 days after receipt, the Department shall remit such | ||||||
2 | funds to the county collector. The county collector shall | ||||||
3 | thereafter make distribution to the respective taxing | ||||||
4 | districts in the same manner and proportion as the most recent | ||||||
5 | distribution by the county collector to those taxing districts | ||||||
6 | of real property taxes from real property in the economic | ||||||
7 | development project area. | ||||||
8 | (b) In the event the developer fails to maintain 4,250 jobs | ||||||
9 | at any time before the termination of the economic development | ||||||
10 | project area, the developer shall forfeit an amount of its | ||||||
11 | allocations from the special tax allocation fund for that time | ||||||
12 | period in which the developer failed to maintain 4,250 jobs. | ||||||
13 | The amount forfeited shall equal the percentage of the year | ||||||
14 | that the developer failed to maintain 4,250 multiplied by the | ||||||
15 | amount the developer would have received if they maintained | ||||||
16 | 4,250 jobs for the entire year. Any funds that are forfeited | ||||||
17 | shall be distributed to the taxing districts in the same manner | ||||||
18 | and proportion as the most recent distribution by the county | ||||||
19 | collector to those taxing districts (inclusive of the | ||||||
20 | municipality) in the economic development project area.
| ||||||
21 | (20 ILCS 620/4.7 new) | ||||||
22 | Sec. 4.7. Municipal reports. After the effective date of | ||||||
23 | this amendatory Act of the 97th General Assembly, a | ||||||
24 | municipality shall submit in an electronic format all of the | ||||||
25 | following information for each economic development project |
| |||||||
| |||||||
1 | area (i) to the State Comptroller and (ii) to all taxing | ||||||
2 | districts overlapping the economic development project area no | ||||||
3 | later than 180 days after the close of each municipal fiscal | ||||||
4 | year or as soon thereafter as the audited financial statements | ||||||
5 | become available: | ||||||
6 | (1) Any amendments to the economic development plan or | ||||||
7 | the economic development project area. | ||||||
8 | (2) Audited financial statements of the special tax | ||||||
9 | allocation fund once a cumulative total of $100,000 has | ||||||
10 | been deposited into the fund. | ||||||
11 | (3) Certification of the Chief Executive Officer of the | ||||||
12 | municipality that the municipality has complied with all of | ||||||
13 | the requirements of this Act during the preceding fiscal | ||||||
14 | year. | ||||||
15 | (4) An opinion of legal counsel that the municipality | ||||||
16 | is in compliance with this Act. | ||||||
17 | (5) An analysis of the special tax allocation fund that | ||||||
18 | sets forth: | ||||||
19 | (A) the balance in the special tax allocation fund | ||||||
20 | at the beginning of the fiscal year; | ||||||
21 | (B) all amounts deposited in the special tax | ||||||
22 | allocation fund by source; | ||||||
23 | (C) an itemized list of all expenditures from the | ||||||
24 | special tax allocation fund by category of permissible | ||||||
25 | economic development project cost; and | ||||||
26 | (D) the balance in the special tax allocation fund |
| |||||||
| |||||||
1 | at the end of the fiscal year, including a breakdown of | ||||||
2 | that balance by source and a breakdown of that balance | ||||||
3 | identifying any portion of the balance that is | ||||||
4 | required, pledged, earmarked, or otherwise designated | ||||||
5 | for payment of or securing of obligations and | ||||||
6 | anticipated economic development project costs; any | ||||||
7 | portion of that ending balance that has not been | ||||||
8 | identified or is not identified as being required, | ||||||
9 | pledged, earmarked, or otherwise designated for | ||||||
10 | payment of or securing of obligations or anticipated | ||||||
11 | economic development projects costs shall be | ||||||
12 | designated as surplus as set forth in Section 8 of this | ||||||
13 | Act. | ||||||
14 | (6) A description of all property purchased by the | ||||||
15 | municipality within the economic development project area | ||||||
16 | including: | ||||||
17 | (A) street address; | ||||||
18 | (B) approximate size or description of property; | ||||||
19 | (C) purchase price; and | ||||||
20 | (D) the seller of the property. | ||||||
21 | (7) A statement setting forth all activities | ||||||
22 | undertaken in furtherance of the objectives of the economic | ||||||
23 | development plan, including: | ||||||
24 | (A) any project implemented in the preceding | ||||||
25 | fiscal year; | ||||||
26 | (B) a description of the economic development |
| |||||||
| |||||||
1 | activities undertaken; | ||||||
2 | (C) a description of any agreements entered into by | ||||||
3 | the municipality with regard to the disposition or | ||||||
4 | redevelopment of any property within the economic | ||||||
5 | development project area; | ||||||
6 | (D) additional information on the use of all funds | ||||||
7 | received under this Act and steps taken by the | ||||||
8 | municipality to achieve the objectives of the economic | ||||||
9 | development plan; | ||||||
10 | (E) information regarding contracts that the | ||||||
11 | municipality's tax increment advisors or consultants | ||||||
12 | have entered into with entities or persons that have | ||||||
13 | received, or are receiving, payments financed by tax | ||||||
14 | increment revenues produced by the same economic | ||||||
15 | development project area; and | ||||||
16 | (F) a review of public and, to the extent possible, | ||||||
17 | private investment actually undertaken on or after the | ||||||
18 | effective date of this amendatory Act of the 97th | ||||||
19 | General Assembly and prior to the date of the report | ||||||
20 | and estimated to be undertaken during the following | ||||||
21 | fiscal year; this review shall, on a project by project | ||||||
22 | basis, set forth the estimated amounts of public and | ||||||
23 | private investment incurred after the effective date | ||||||
24 | of this amendatory Act of the 97th General Assembly and | ||||||
25 | provide the ratio of private investment to public | ||||||
26 | investment to the date of the report and as estimated |
| |||||||
| |||||||
1 | to the completion of the economic development project. | ||||||
2 | (8) With regard to any obligations issued by the | ||||||
3 | municipality: | ||||||
4 | (A) copies of any official statements; and | ||||||
5 | (B) an analysis prepared by financial advisor or | ||||||
6 | underwriter setting forth: (i) the nature and term of | ||||||
7 | those obligations; and (ii) projected debt service | ||||||
8 | including required reserves and debt coverage. | ||||||
9 | (9) For special tax allocation funds that have | ||||||
10 | experienced cumulative deposits of incremental tax | ||||||
11 | revenues of $100,000 or more, a certified audit report | ||||||
12 | reviewing compliance with this Act performed by an | ||||||
13 | independent public accountant certified and licensed by | ||||||
14 | the authority of the State of Illinois. The financial | ||||||
15 | portion of the audit must be conducted in accordance with | ||||||
16 | Standards for Audits of Governmental Organizations, | ||||||
17 | Programs, Activities, and Functions adopted by the | ||||||
18 | Comptroller General of the United States (1981), as | ||||||
19 | amended, or the standards specified by Section 8-8-5 of the | ||||||
20 | Illinois Municipal Auditing Law of the Illinois Municipal | ||||||
21 | Code. The audit report shall contain a letter from the | ||||||
22 | independent certified public accountant indicating | ||||||
23 | compliance or noncompliance with the requirements of | ||||||
24 | subsection (e) of Section 3 of this Act. | ||||||
25 | (10) A list of all intergovernmental agreements in | ||||||
26 | effect during the fiscal year to which the municipality is |
| |||||||
| |||||||
1 | a party and an accounting of any moneys transferred or | ||||||
2 | received by the municipality during that fiscal year | ||||||
3 | pursuant to those intergovernmental agreements.
| ||||||
4 | (20 ILCS 620/5) (from Ch. 67 1/2, par. 1005)
| ||||||
5 | Sec. 5.
Submission to Department; certification by | ||||||
6 | Department;
limitation on number of permissible economic | ||||||
7 | development project areas.
(a) The municipality shall submit | ||||||
8 | certified copies of any ordinances
adopted approving an | ||||||
9 | economic development plan, establishing an
economic | ||||||
10 | development project area, and authorizing tax increment | ||||||
11 | allocation
financing for such economic development project | ||||||
12 | area to the Department,
together with (1) a map of the economic
| ||||||
13 | development project area, (2) a copy of the economic | ||||||
14 | development plan as
approved, (3) an analysis, and any | ||||||
15 | supporting documents and statistics,
demonstrating that the | ||||||
16 | developer or any of its successor entities and its subsidiaries | ||||||
17 | economic development project shall
create or retain
not less | ||||||
18 | than 4,250 2,000 full-time equivalent jobs and that private | ||||||
19 | investment
in the amount of not less than $100,000,000 shall | ||||||
20 | occur
in the economic development project area, (4) an estimate | ||||||
21 | of the economic
impact of the economic development project and | ||||||
22 | the use of tax increment
allocation financing upon the revenues | ||||||
23 | of the municipality and the affected
taxing districts, (5) a | ||||||
24 | record of all public hearings had in connection
with the | ||||||
25 | establishment of the economic development project area, and (6)
|
| |||||||
| |||||||
1 | such other information as the Department by regulation may | ||||||
2 | require.
| ||||||
3 | (b) Upon receipt of an application from a municipality the | ||||||
4 | Department
shall review the application to determine whether | ||||||
5 | the economic development
project area qualifies as an economic | ||||||
6 | development project area under this
Act. At its discretion, the | ||||||
7 | Department may accept or reject the
application or may request | ||||||
8 | such additional information as it deems
necessary or advisable | ||||||
9 | to aid its review. If any such area is found to be
qualified to | ||||||
10 | be an economic development project area, the Department shall
| ||||||
11 | approve and certify such economic development project area and | ||||||
12 | shall
provide written notice of its approval and certification | ||||||
13 | to the municipality and
to the county clerk. In determining | ||||||
14 | whether an economic development
project area shall be approved | ||||||
15 | and certified, the Department shall consider
(1) whether, | ||||||
16 | without public intervention, the State would suffer
| ||||||
17 | substantial economic dislocation, such as relocation of a | ||||||
18 | commercial
business or industrial or manufacturing facility to | ||||||
19 | another state,
territory or country, or would not otherwise | ||||||
20 | benefit from private
investment offering substantial | ||||||
21 | employment opportunities and economic
growth, and (2) the | ||||||
22 | impact on the revenues of the municipality and the
affected | ||||||
23 | taxing districts of the use of tax increment allocation | ||||||
24 | financing
in connection with the economic development project.
| ||||||
25 | (c) On or before the date which is 18 months following the | ||||||
26 | date on which
this Act becomes law, the Department shall submit |
| |||||||
| |||||||
1 | to the General Assembly a
report detailing the number of | ||||||
2 | economic development project areas it has
approved and | ||||||
3 | certified, the number and type of jobs created or retained
| ||||||
4 | therein, the aggregate amount of private investment therein, | ||||||
5 | the impact on
the revenues of municipalities and affected | ||||||
6 | taxing districts of the use of
tax increment allocation | ||||||
7 | financing therein, and such additional information
as the | ||||||
8 | Department may determine to be relevant. On or after the date | ||||||
9 | which
is 20 months following the date on which this Act becomes | ||||||
10 | law the authority
granted hereunder to municipalities to | ||||||
11 | establish economic development
project areas and to adopt tax | ||||||
12 | increment allocation financing in connection
therewith and to | ||||||
13 | the Department to approve and certify economic development
| ||||||
14 | project areas shall expire unless the General Assembly shall | ||||||
15 | have
authorized municipalities and the Department to continue | ||||||
16 | to exercise the
powers granted to them hereunder.
| ||||||
17 | (Source: P.A. 86-38.)
| ||||||
18 | (20 ILCS 620/8) (from Ch. 67 1/2, par. 1008)
| ||||||
19 | Sec. 8.
Issuance of obligations for economic development | ||||||
20 | project
costs. Obligations secured by the special tax | ||||||
21 | allocation fund provided for in
Section 7 of this Act for an | ||||||
22 | economic development project area may be issued to
provide for | ||||||
23 | economic development project costs. Those obligations, when so
| ||||||
24 | issued, shall be retired in the manner provided in the | ||||||
25 | ordinance
authorizing the issuance of the obligations by the |
| |||||||
| |||||||
1 | receipts of taxes
levied as specified in Section 6 of this Act | ||||||
2 | against the taxable property
included in
the economic | ||||||
3 | development project area and by other revenue designated or
| ||||||
4 | pledged by the municipality. A municipality may in the | ||||||
5 | ordinance pledge
all or any part of the funds in and to be | ||||||
6 | deposited in the special tax
allocation fund created pursuant | ||||||
7 | to Section 7 of this Act to the payment of the
economic | ||||||
8 | development project costs and obligations.
Whenever a | ||||||
9 | municipality pledges all of the funds to the credit of a
| ||||||
10 | special tax allocation fund to secure obligations issued or to | ||||||
11 | be issued to
pay economic development project costs, the | ||||||
12 | municipality may specifically
provide that funds remaining to | ||||||
13 | the credit of such special tax allocation
fund after the | ||||||
14 | payment of such obligations shall be accounted for annually
and | ||||||
15 | shall be deemed to be "surplus" funds, and such "surplus" funds | ||||||
16 | shall be
distributed as hereinafter provided. Whenever a | ||||||
17 | municipality pledges less
than all of the monies to the credit | ||||||
18 | of a special tax allocation fund to
secure obligations issued | ||||||
19 | or to be issued to pay economic development
project costs, the | ||||||
20 | municipality shall provide that monies to the credit of
the | ||||||
21 | special tax allocation fund and not subject to such pledge or
| ||||||
22 | otherwise encumbered or required for payment of contractual | ||||||
23 | obligations
for specific economic development project costs | ||||||
24 | shall be calculated
annually and shall be deemed to be | ||||||
25 | "surplus" funds, and such "surplus"
funds shall be distributed | ||||||
26 | as hereinafter provided. All funds to the
credit of a special |
| |||||||
| |||||||
1 | tax allocation fund which are deemed to be "surplus"
funds | ||||||
2 | shall be distributed annually within 180 days of the close of | ||||||
3 | the
municipality's fiscal year by being paid by the municipal | ||||||
4 | treasurer to the
county collector.
The county collector shall
| ||||||
5 | thereafter make distribution to the respective taxing | ||||||
6 | districts in the same
manner and proportion as the most recent | ||||||
7 | distribution by the county
collector to those taxing districts | ||||||
8 | of real property taxes from real
property in the economic | ||||||
9 | development project area.
| ||||||
10 | Without limiting the foregoing in this Section the | ||||||
11 | municipality may, in
addition to obligations secured by the | ||||||
12 | special tax allocation fund, pledge
for a period not greater | ||||||
13 | than the term of the obligations towards payment
of those | ||||||
14 | obligations any part or any combination of the following: (i) | ||||||
15 | net
revenues of all or part of any economic development | ||||||
16 | project; (ii) taxes
levied and collected on any or all property | ||||||
17 | in the municipality, including,
specifically, taxes levied or | ||||||
18 | imposed by the municipality in a special
service area pursuant | ||||||
19 | to "An Act to provide the manner of levying or
imposing taxes | ||||||
20 | for the provision of special services to areas within the
| ||||||
21 | boundaries of home rule units and non-home rule municipalities | ||||||
22 | and
counties", approved September 21, 1973, as now or hereafter | ||||||
23 | amended; (iii) the
full faith and credit of the municipality; | ||||||
24 | (iv) a mortgage on part or all
of the economic development | ||||||
25 | project; or (v) any other taxes or anticipated
receipts that | ||||||
26 | the municipality may lawfully pledge.
|
| |||||||
| |||||||
1 | Such obligations may be issued in one or more series | ||||||
2 | bearing interest at
such rate or rates as the corporate | ||||||
3 | authorities of the municipality shall
determine by ordinance, | ||||||
4 | which rate or rates may be variable or fixed,
without regard to | ||||||
5 | any limitations contained in any law now in effect or
hereafter | ||||||
6 | adopted. Such obligations shall bear such date or dates, mature
| ||||||
7 | at such time or times not exceeding 38 20 years from their | ||||||
8 | respective dates,
but in no event exceeding 38 23 years from | ||||||
9 | the date of establishment of the
economic development project | ||||||
10 | area, be in such denomination, be in such
form, whether coupon, | ||||||
11 | registered or book-entry, carry such registration,
conversion | ||||||
12 | and exchange privileges, be executed in such manner, be payable
| ||||||
13 | in such medium of payment at such place or places within or | ||||||
14 | without the
State of Illinois, contain such covenants, terms | ||||||
15 | and conditions, be subject
to redemption with or without | ||||||
16 | premium, be subject to defeasance upon such
terms, and have | ||||||
17 | such rank or priority, as such ordinance shall provide.
| ||||||
18 | Obligations issued pursuant to this Act may be sold at public | ||||||
19 | or private
sale at such price as shall be determined by the | ||||||
20 | corporate authorities of
the municipalities. Such obligations | ||||||
21 | may, but need not, be issued utilizing
the provisions of any | ||||||
22 | one or more of the omnibus bond Acts
specified in Section 1.33 | ||||||
23 | of "An Act to revise the law in relation to the
construction of | ||||||
24 | the statutes", approved March 5, 1874, as now or hereafter
| ||||||
25 | amended. No referendum approval of the electors shall be | ||||||
26 | required as a condition to
the issuance of obligations pursuant |
| |||||||
| |||||||
1 | to this Act except as provided in this Section.
| ||||||
2 | Whenever a municipality issues bonds for the purpose of | ||||||
3 | financing
economic development project costs, the municipality | ||||||
4 | may provide by
ordinance for the appointment of a trustee, | ||||||
5 | which may be any trust company
within the State, and for the | ||||||
6 | establishment of the funds or accounts to be
maintained by such | ||||||
7 | trustee as the municipality shall deem necessary to
provide for | ||||||
8 | the security and payment of the bonds. If the municipality
| ||||||
9 | provides for the appointment of a trustee, the trustee shall be | ||||||
10 | considered
the assignee of any payments assigned by the | ||||||
11 | municipality pursuant to the
ordinance and this Section. Any | ||||||
12 | amounts paid to the trustee as assignee
shall be deposited in | ||||||
13 | the funds or accounts established pursuant to the
trust | ||||||
14 | agreement, and shall be held by the trustee in trust for the | ||||||
15 | benefit of
the holders
of the bonds, and the holders shall have | ||||||
16 | a lien on and a security interest
in those bonds or accounts so | ||||||
17 | long as the bonds remain outstanding and
unpaid. Upon | ||||||
18 | retirement of the bonds, the trustee shall pay over any excess
| ||||||
19 | amounts held to the municipality for deposit in the special tax | ||||||
20 | allocation
fund.
| ||||||
21 | In the event the municipality authorizes the issuance of | ||||||
22 | obligations
pursuant to the authority of this Act secured by | ||||||
23 | the full faith and
credit of the municipality, or pledges ad | ||||||
24 | valorem taxes pursuant to clause
(ii) of the second paragraph | ||||||
25 | of this Section, which obligations are other than
obligations
| ||||||
26 | which may be issued under home rule powers provided by Article |
| |||||||
| |||||||
1 | VII,
Section 6 of the Illinois Constitution or which ad valorem | ||||||
2 | taxes are other than
ad valorem
taxes which may be pledged | ||||||
3 | under home rule powers provided by Article VII, Section
6 of | ||||||
4 | the Illinois Constitution or which are levied in a special | ||||||
5 | service
area pursuant to "An Act to provide the manner of | ||||||
6 | levying or imposing taxes
for the provision of special services | ||||||
7 | to areas within the boundaries of
home rule units and non-home | ||||||
8 | rule municipalities and counties", approved
September 21, | ||||||
9 | 1973, as now or hereafter amended,
the ordinance authorizing | ||||||
10 | the
issuance of those obligations or pledging those taxes shall | ||||||
11 | be published
within 10 days after the ordinance has been | ||||||
12 | adopted, in one or more
newspapers having a general circulation | ||||||
13 | within the municipality. The
publication of the ordinance shall | ||||||
14 | be accompanied by a notice of (1) the
specific number of voters | ||||||
15 | required to sign a petition requesting the
question of the | ||||||
16 | issuance of the obligations or pledging such ad valorem taxes
| ||||||
17 | to be submitted to the electors; (2) the time within which the | ||||||
18 | petition must
be filed; and (3) the date of the prospective | ||||||
19 | referendum. The municipal
clerk shall provide a petition form | ||||||
20 | to any individual requesting one.
| ||||||
21 | If no petition is filed with the municipal clerk, as | ||||||
22 | hereinafter provided
in this Section, within 21 days after the | ||||||
23 | publication of the ordinance, the
ordinance shall be in effect. | ||||||
24 | However, if within that 21 day period a petition
is filed with | ||||||
25 | the municipal clerk, signed by electors numbering not less
than | ||||||
26 | 15% of the number of electors voting for the mayor or president |
| |||||||
| |||||||
1 | at the
last general municipal election, asking that the | ||||||
2 | question of issuing
obligations using full faith and credit of | ||||||
3 | the municipality as security for
the cost of paying for | ||||||
4 | economic development project costs, or of pledging
such ad | ||||||
5 | valorem taxes for the payment of those obligations, or both, be | ||||||
6 | submitted
to the electors of the municipality, the municipality | ||||||
7 | shall not be
authorized to issue obligations of the | ||||||
8 | municipality using the full faith and
credit of the | ||||||
9 | municipality as security or pledging such ad valorem taxes for | ||||||
10 | the
payment of those obligations, or both, until the | ||||||
11 | proposition
has been submitted to and approved by a majority of | ||||||
12 | the voters voting on
the proposition at a regularly scheduled | ||||||
13 | election. The municipality shall
certify the proposition to the | ||||||
14 | proper election authorities for submission
in accordance with | ||||||
15 | the general election law.
| ||||||
16 | The ordinance authorizing the obligations may provide that | ||||||
17 | the
obligations shall contain a recital that they are issued | ||||||
18 | pursuant to this
Act, which recital shall be conclusive | ||||||
19 | evidence of their validity and of
the regularity of their | ||||||
20 | issuance.
| ||||||
21 | In the event the municipality authorizes issuance of | ||||||
22 | obligations pursuant
to this Act secured by the full faith and | ||||||
23 | credit of the municipality, the
ordinance authorizing the | ||||||
24 | obligations may provide for the levy and
collection of a direct | ||||||
25 | annual tax upon all taxable property within the
municipality | ||||||
26 | sufficient to pay the principal thereof and interest thereon
as |
| |||||||
| |||||||
1 | it matures, which levy may be in addition to and exclusive of | ||||||
2 | the
maximum of all other taxes authorized to be levied by the | ||||||
3 | municipality,
which levy, however, shall be abated to the | ||||||
4 | extent that monies from other
sources are available for payment | ||||||
5 | of the obligations and the municipality
certifies the amount of | ||||||
6 | those monies available to the county clerk.
| ||||||
7 | A certified copy of the ordinance shall be filed with the | ||||||
8 | county clerk
of each county in which any portion of the | ||||||
9 | municipality is situated, and
shall constitute the authority | ||||||
10 | for the extension and collection of the taxes
to be deposited | ||||||
11 | in the special tax allocation fund.
| ||||||
12 | A municipality may also issue its obligations to refund, in | ||||||
13 | whole or in
part, obligations theretofore issued by the | ||||||
14 | municipality under the
authority of this Act, whether at or | ||||||
15 | prior to maturity. However,
the last maturity of the refunding | ||||||
16 | obligations shall not be expressed
to mature later than 38 23 | ||||||
17 | years from the date of the ordinance establishing
the economic | ||||||
18 | development project area.
| ||||||
19 | In the event a municipality issues obligations under home | ||||||
20 | rule powers or
other legislative authority, the proceeds of | ||||||
21 | which are pledged to pay for
economic development project | ||||||
22 | costs, the municipality may, if it has
followed the procedures | ||||||
23 | in conformance with this Act, retire those
obligations from | ||||||
24 | funds in the special tax allocation fund in amounts and in
such | ||||||
25 | manner as if those obligations had been issued pursuant to the
| ||||||
26 | provisions of this Act.
|
| |||||||
| |||||||
1 | No obligations issued pursuant to this Act shall be | ||||||
2 | regarded as
indebtedness of the municipality issuing those | ||||||
3 | obligations or any other
taxing district for the purpose of any | ||||||
4 | limitation imposed by law.
| ||||||
5 | Obligations issued pursuant to this Act shall not be | ||||||
6 | subject to the
provisions of "An Act to authorize public | ||||||
7 | corporations to issue bonds,
other evidences of indebtedness | ||||||
8 | and tax anticipation warrants subject to
interest rate | ||||||
9 | limitations set forth therein", approved May 26, 1970, as | ||||||
10 | amended.
| ||||||
11 | (Source: P.A. 86-38.)
| ||||||
12 | (20 ILCS 620/9) (from Ch. 67 1/2, par. 1009)
| ||||||
13 | Sec. 9. Powers of municipalities. In addition to powers | ||||||
14 | which it may
now
have, any municipality has the power under | ||||||
15 | this Act:
| ||||||
16 | (a) To make and enter into all contracts necessary or | ||||||
17 | incidental to the
implementation and furtherance of an economic | ||||||
18 | development plan.
| ||||||
19 | (b) Within an economic development project area, to acquire | ||||||
20 | by purchase,
donation, lease or eminent domain, and to own, | ||||||
21 | convey, lease, mortgage or
dispose of land and other real or | ||||||
22 | personal property or rights or interests
therein; and to grant | ||||||
23 | or acquire licenses, easements and options with
respect | ||||||
24 | thereto, all in the manner and at such price the municipality
| ||||||
25 | determines is reasonably necessary to achieve the objectives of |
| |||||||
| |||||||
1 | the
economic development project. No conveyance, lease, | ||||||
2 | mortgage, disposition
of land or other property acquired by the | ||||||
3 | municipality, or agreement
relating to the development of | ||||||
4 | property, shall be made or executed except
pursuant to prior | ||||||
5 | official action of the municipality.
No conveyance, lease, | ||||||
6 | mortgage or other disposition of land, and no
agreement | ||||||
7 | relating to the development of property, shall be made without
| ||||||
8 | making public disclosure of the terms and disposition of all | ||||||
9 | bids and
proposals submitted to the municipality in connection | ||||||
10 | therewith.
| ||||||
11 | (c) To clear any area within an economic development | ||||||
12 | project area by
demolition or removal of any existing | ||||||
13 | buildings, structures, fixtures,
utilities or improvements, | ||||||
14 | and to clear and grade land.
| ||||||
15 | (d) To install, repair, construct, reconstruct or relocate | ||||||
16 | public
streets, public utilities, and other public site | ||||||
17 | improvements within or
without an economic development project | ||||||
18 | area which are essential to the
preparation of an economic | ||||||
19 | development project area for use in accordance
with an economic | ||||||
20 | development plan.
| ||||||
21 | (e) To renovate, rehabilitate, reconstruct, relocate, | ||||||
22 | repair or remodel
any existing buildings, improvements, and | ||||||
23 | fixtures within an economic
development project area.
| ||||||
24 | (f) To construct , acquire, and operate public | ||||||
25 | improvements, including but not limited to,
publicly-owned | ||||||
26 | buildings, structures, works, utilities or fixtures within any |
| |||||||
| |||||||
1 | economic
development project area , subject to the restrictions | ||||||
2 | of item (5) of subsection (e) of Section 3 of this Act .
| ||||||
3 | (g) To issue obligations as provided in this Act provided .
| ||||||
4 | (h) To fix, charge and collect fees, rents and charges for | ||||||
5 | the use of
any building, facility or property or any portion | ||||||
6 | thereof owned or leased
by the municipality within an economic | ||||||
7 | development project area.
| ||||||
8 | (i) To accept grants, guarantees, donations of property or | ||||||
9 | labor, or any
other thing of value for use in connection with | ||||||
10 | an economic development project.
| ||||||
11 | (j) To pay or cause to be paid economic development project | ||||||
12 | costs. Any
payments to be made by the municipality to | ||||||
13 | developers or other
nongovernmental persons for economic | ||||||
14 | development project costs incurred by
such developer or other | ||||||
15 | nongovernmental person shall be made only pursuant
to the prior | ||||||
16 | official action of the municipality evidencing an intent to
pay | ||||||
17 | or cause to be paid such economic development project costs. A
| ||||||
18 | municipality is not required to obtain any right, title or | ||||||
19 | interest in any
real or personal property in order to pay | ||||||
20 | economic development project
costs associated with such | ||||||
21 | property. The municipality shall adopt such
accounting | ||||||
22 | procedures as may be necessary to determine that such economic
| ||||||
23 | development project costs are properly paid.
| ||||||
24 | (k) To exercise any and all other powers necessary to | ||||||
25 | effectuate the
purposes of this Act.
| ||||||
26 | (l) To create a commission of not less than 5 or more than |
| |||||||
| |||||||
1 | 15 persons to be
appointed by the mayor or president of the | ||||||
2 | municipality with the consent of
the majority of the corporate | ||||||
3 | authorities of the municipality. Members of a
commission shall | ||||||
4 | be appointed for initial terms of 1, 2, 3, 4, and 5 years,
| ||||||
5 | respectively, in such numbers as to provide that the terms of | ||||||
6 | not more than
1/3 of all such members shall expire in any one | ||||||
7 | year. Their successors
shall be appointed for a term of 5 | ||||||
8 | years. The commission, subject to
approval of the corporate | ||||||
9 | authorities, may exercise the powers enumerated in
this | ||||||
10 | Section. The commission shall also have the power to hold the | ||||||
11 | public
hearings required by this Act and make recommendations | ||||||
12 | to the corporate
authorities concerning the approval of | ||||||
13 | economic development plans, the
establishment of economic | ||||||
14 | development project areas, and the adoption of
tax increment | ||||||
15 | allocation financing for economic development project areas.
| ||||||
16 | (Source: P.A. 91-357, eff. 7-29-99.)
| ||||||
17 | (20 ILCS 620/11) (from Ch. 67 1/2, par. 1011)
| ||||||
18 | Sec. 11. Payment of project costs; revenues from | ||||||
19 | governmental municipal property. Revenues received by a taxing | ||||||
20 | district municipality from any property, building or
facility | ||||||
21 | owned, leased or operated by the taxing district municipality | ||||||
22 | or any agency or
authority established by the taxing district | ||||||
23 | municipality may be used to pay economic
development project | ||||||
24 | costs, or reduce outstanding obligations of the
taxing district | ||||||
25 | municipality incurred under this Act for economic development |
| |||||||
| |||||||
1 | project
costs. The taxing district municipality may place those | ||||||
2 | revenues in the special tax
allocation fund which shall be held | ||||||
3 | by the municipal treasurer of the taxing district or other
| ||||||
4 | person designated by the taxing district municipality . Revenue | ||||||
5 | received by a taxing district the municipality
from the sale or | ||||||
6 | other disposition of real or personal property or rights
or | ||||||
7 | interests therein acquired by a taxing district the
| ||||||
8 | municipality with the proceeds of obligations funded by tax | ||||||
9 | increment
allocation financing may be used to acquire and | ||||||
10 | operate other governmental property that is within the economic | ||||||
11 | development project area or that provides services within the | ||||||
12 | economic development project area, subject to the restrictions | ||||||
13 | of item (5) of subsection (e) of Section 3 of this Act. shall | ||||||
14 | be deposited by the municipality in the special
tax allocation | ||||||
15 | fund.
| ||||||
16 | (Source: P.A. 86-38.)
| ||||||
17 | Section 15-10. The Illinois Income Tax Act is amended by | ||||||
18 | changing Sections 201, 204, 207, 212, 250, 304, 804, and 1501 | ||||||
19 | as follows:
| ||||||
20 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
21 | Sec. 201. Tax Imposed. | ||||||
22 | (a) In general. A tax measured by net income is hereby | ||||||
23 | imposed on every
individual, corporation, trust and estate for | ||||||
24 | each taxable year ending
after July 31, 1969 on the privilege |
| |||||||
| |||||||
1 | of earning or receiving income in or
as a resident of this | ||||||
2 | State. Such tax shall be in addition to all other
occupation or | ||||||
3 | privilege taxes imposed by this State or by any municipal
| ||||||
4 | corporation or political subdivision thereof. | ||||||
5 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
6 | Section shall be
determined as follows, except as adjusted by | ||||||
7 | subsection (d-1): | ||||||
8 | (1) In the case of an individual, trust or estate, for | ||||||
9 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
10 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
11 | year. | ||||||
12 | (2) In the case of an individual, trust or estate, for | ||||||
13 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
14 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
15 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
16 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
17 | 3% of the
taxpayer's net income for the period after June | ||||||
18 | 30, 1989, as calculated
under Section 202.3. | ||||||
19 | (3) In the case of an individual, trust or estate, for | ||||||
20 | taxable years
beginning after June 30, 1989, and ending | ||||||
21 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
22 | taxpayer's net
income for the taxable year. | ||||||
23 | (4) In the case of an individual, trust, or estate, for | ||||||
24 | taxable years beginning prior to January 1, 2011, and | ||||||
25 | ending after December 31, 2010, an amount equal to the sum | ||||||
26 | of (i) 3% of the taxpayer's net income for the period prior |
| |||||||
| |||||||
1 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
2 | (ii) 5% of the taxpayer's net income for the period after | ||||||
3 | December 31, 2010, as calculated under Section 202.5. | ||||||
4 | (5) In the case of an individual, trust, or estate, for | ||||||
5 | taxable years beginning on or after January 1, 2011, and | ||||||
6 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
7 | the taxpayer's net income for the taxable year. | ||||||
8 | (5.1) In the case of an individual, trust, or estate, | ||||||
9 | for taxable years beginning prior to January 1, 2015, and | ||||||
10 | ending after December 31, 2014, an amount equal to the sum | ||||||
11 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
12 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
13 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
14 | after December 31, 2014, as calculated under Section 202.5. | ||||||
15 | (5.2) In the case of an individual, trust, or estate, | ||||||
16 | for taxable years beginning on or after January 1, 2015, | ||||||
17 | and ending prior to January 1, 2025, an amount equal to | ||||||
18 | 3.75% of the taxpayer's net income for the taxable year. | ||||||
19 | (5.3) In the case of an individual, trust, or estate, | ||||||
20 | for taxable years beginning prior to January 1, 2025, and | ||||||
21 | ending after December 31, 2024, an amount equal to the sum | ||||||
22 | of (i) 3.75% of the taxpayer's net income for the period | ||||||
23 | prior to January 1, 2025, as calculated under Section | ||||||
24 | 202.5, and (ii) 3.25% of the taxpayer's net income for the | ||||||
25 | period after December 31, 2024, as calculated under Section | ||||||
26 | 202.5. |
| |||||||
| |||||||
1 | (5.4) In the case of an individual, trust, or estate, | ||||||
2 | for taxable years beginning on or after January 1, 2025, an | ||||||
3 | amount equal to 3.25% of the taxpayer's net income for the | ||||||
4 | taxable year. | ||||||
5 | (6) In the case of a corporation, for taxable years
| ||||||
6 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
7 | taxpayer's net income for the taxable year. | ||||||
8 | (7) In the case of a corporation, for taxable years | ||||||
9 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
10 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
11 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
12 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
13 | taxpayer's net
income for the period after June 30, 1989, | ||||||
14 | as calculated under Section
202.3. | ||||||
15 | (8) In the case of a corporation, for taxable years | ||||||
16 | beginning after
June 30, 1989, and ending prior to January | ||||||
17 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
18 | income for the
taxable year. | ||||||
19 | (9) In the case of a corporation, for taxable years | ||||||
20 | beginning prior to January 1, 2011, and ending after | ||||||
21 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
22 | of the taxpayer's net income for the period prior to | ||||||
23 | January 1, 2011, as calculated under Section 202.5, and | ||||||
24 | (ii) 7% of the taxpayer's net income for the period after | ||||||
25 | December 31, 2010, as calculated under Section 202.5. | ||||||
26 | (10) In the case of a corporation, for taxable years |
| |||||||
| |||||||
1 | beginning on or after January 1, 2011, and ending prior to | ||||||
2 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
3 | net income for the taxable year. | ||||||
4 | (11) In the case of a corporation, for taxable years | ||||||
5 | beginning prior to January 1, 2015, and ending after | ||||||
6 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
7 | the taxpayer's net income for the period prior to January | ||||||
8 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
9 | of the taxpayer's net income for the period after December | ||||||
10 | 31, 2014, as calculated under Section 202.5. | ||||||
11 | (12) In the case of a corporation, for taxable years | ||||||
12 | beginning on or after January 1, 2015, and ending prior to | ||||||
13 | January 1, 2025, an amount equal to 5.25% of the taxpayer's | ||||||
14 | net income for the taxable year. | ||||||
15 | (13) In the case of a corporation, for taxable years | ||||||
16 | beginning prior to January 1, 2025, and ending after | ||||||
17 | December 31, 2024, an amount equal to the sum of (i) 5.25% | ||||||
18 | of the taxpayer's net income for the period prior to | ||||||
19 | January 1, 2025, as calculated under Section 202.5, and | ||||||
20 | (ii) 4.8% of the taxpayer's net income for the period after | ||||||
21 | December 31, 2024, as calculated under Section 202.5. | ||||||
22 | (14) In the case of a corporation, for taxable years | ||||||
23 | beginning on or after January 1, 2025, an amount equal to | ||||||
24 | 4.8% of the taxpayer's net income for the taxable year. | ||||||
25 | The rates under this subsection (b) are subject to the | ||||||
26 | provisions of Section 201.5. |
| |||||||
| |||||||
1 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
2 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
3 | income
tax, there is also hereby imposed the Personal Property | ||||||
4 | Tax Replacement
Income Tax measured by net income on every | ||||||
5 | corporation (including Subchapter
S corporations), partnership | ||||||
6 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
7 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
8 | income in or as a resident of this State. The Personal Property
| ||||||
9 | Tax Replacement Income Tax shall be in addition to the income | ||||||
10 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
11 | addition to all other
occupation or privilege taxes imposed by | ||||||
12 | this State or by any municipal
corporation or political | ||||||
13 | subdivision thereof. | ||||||
14 | (d) Additional Personal Property Tax Replacement Income | ||||||
15 | Tax Rates.
The personal property tax replacement income tax | ||||||
16 | imposed by this subsection
and subsection (c) of this Section | ||||||
17 | in the case of a corporation, other
than a Subchapter S | ||||||
18 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
19 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
20 | income for the taxable year, except that
beginning on January | ||||||
21 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
22 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
23 | partnership, trust or a Subchapter S corporation shall be an | ||||||
24 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
25 | for the taxable year. | ||||||
26 | (d-1) Rate reduction for certain foreign insurers. In the |
| |||||||
| |||||||
1 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
2 | Illinois Insurance Code,
whose state or country of domicile | ||||||
3 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
4 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
5 | are 50% or more of its total insurance
premiums as determined | ||||||
6 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
7 | that for purposes of this determination premiums from | ||||||
8 | reinsurance do
not include premiums from inter-affiliate | ||||||
9 | reinsurance arrangements),
beginning with taxable years ending | ||||||
10 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
11 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
12 | increased) to the rate at which the total amount of tax imposed | ||||||
13 | under this Act,
net of all credits allowed under this Act, | ||||||
14 | shall equal (i) the total amount of
tax that would be imposed | ||||||
15 | on the foreign insurer's net income allocable to
Illinois for | ||||||
16 | the taxable year by such foreign insurer's state or country of
| ||||||
17 | domicile if that net income were subject to all income taxes | ||||||
18 | and taxes
measured by net income imposed by such foreign | ||||||
19 | insurer's state or country of
domicile, net of all credits | ||||||
20 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
21 | income by the foreign insurer's state of domicile.
For the | ||||||
22 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
23 | a
mutual insurer under common management. | ||||||
24 | (1) For the purposes of subsection (d-1), in no event | ||||||
25 | shall the sum of the
rates of tax imposed by subsections | ||||||
26 | (b) and (d) be reduced below the rate at
which the sum of: |
| |||||||
| |||||||
1 | (A) the total amount of tax imposed on such foreign | ||||||
2 | insurer under
this Act for a taxable year, net of all | ||||||
3 | credits allowed under this Act, plus | ||||||
4 | (B) the privilege tax imposed by Section 409 of the | ||||||
5 | Illinois Insurance
Code, the fire insurance company | ||||||
6 | tax imposed by Section 12 of the Fire
Investigation | ||||||
7 | Act, and the fire department taxes imposed under | ||||||
8 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
9 | equals 1.25% for taxable years ending prior to December 31, | ||||||
10 | 2003, or
1.75% for taxable years ending on or after | ||||||
11 | December 31, 2003, of the net
taxable premiums written for | ||||||
12 | the taxable year,
as described by subsection (1) of Section | ||||||
13 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
14 | no event increase the rates imposed under subsections
(b) | ||||||
15 | and (d). | ||||||
16 | (2) Any reduction in the rates of tax imposed by this | ||||||
17 | subsection shall be
applied first against the rates imposed | ||||||
18 | by subsection (b) and only after the
tax imposed by | ||||||
19 | subsection (a) net of all credits allowed under this | ||||||
20 | Section
other than the credit allowed under subsection (i) | ||||||
21 | has been reduced to zero,
against the rates imposed by | ||||||
22 | subsection (d). | ||||||
23 | This subsection (d-1) is exempt from the provisions of | ||||||
24 | Section 250. | ||||||
25 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
26 | against the Personal Property Tax Replacement Income Tax for
|
| |||||||
| |||||||
1 | investment in qualified property. | ||||||
2 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
3 | of
the basis of qualified property placed in service during | ||||||
4 | the taxable year,
provided such property is placed in | ||||||
5 | service on or after
July 1, 1984. There shall be allowed an | ||||||
6 | additional credit equal
to .5% of the basis of qualified | ||||||
7 | property placed in service during the
taxable year, | ||||||
8 | provided such property is placed in service on or
after | ||||||
9 | July 1, 1986, and the taxpayer's base employment
within | ||||||
10 | Illinois has increased by 1% or more over the preceding | ||||||
11 | year as
determined by the taxpayer's employment records | ||||||
12 | filed with the
Illinois Department of Employment Security. | ||||||
13 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
14 | met the 1% growth in base employment for
the first year in | ||||||
15 | which they file employment records with the Illinois
| ||||||
16 | Department of Employment Security. The provisions added to | ||||||
17 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
18 | Act 87-895) shall be
construed as declaratory of existing | ||||||
19 | law and not as a new enactment. If,
in any year, the | ||||||
20 | increase in base employment within Illinois over the
| ||||||
21 | preceding year is less than 1%, the additional credit shall | ||||||
22 | be limited to that
percentage times a fraction, the | ||||||
23 | numerator of which is .5% and the denominator
of which is | ||||||
24 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
25 | not be
allowed to the extent that it would reduce a | ||||||
26 | taxpayer's liability in any tax
year below zero, nor may |
| |||||||
| |||||||
1 | any credit for qualified property be allowed for any
year | ||||||
2 | other than the year in which the property was placed in | ||||||
3 | service in
Illinois. For tax years ending on or after | ||||||
4 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
5 | credit shall be allowed for the tax year in
which the | ||||||
6 | property is placed in service, or, if the amount of the | ||||||
7 | credit
exceeds the tax liability for that year, whether it | ||||||
8 | exceeds the original
liability or the liability as later | ||||||
9 | amended, such excess may be carried
forward and applied to | ||||||
10 | the tax liability of the 5 taxable years following
the | ||||||
11 | excess credit years if the taxpayer (i) makes investments | ||||||
12 | which cause
the creation of a minimum of 2,000 full-time | ||||||
13 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
14 | enterprise zone established pursuant to the Illinois
| ||||||
15 | Enterprise Zone Act and (iii) is certified by the | ||||||
16 | Department of Commerce
and Community Affairs (now | ||||||
17 | Department of Commerce and Economic Opportunity) as | ||||||
18 | complying with the requirements specified in
clause (i) and | ||||||
19 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
20 | Community Affairs (now Department of Commerce and Economic | ||||||
21 | Opportunity) shall notify the Department of Revenue of all | ||||||
22 | such
certifications immediately. For tax years ending | ||||||
23 | after December 31, 1988,
the credit shall be allowed for | ||||||
24 | the tax year in which the property is
placed in service, | ||||||
25 | or, if the amount of the credit exceeds the tax
liability | ||||||
26 | for that year, whether it exceeds the original liability or |
| |||||||
| |||||||
1 | the
liability as later amended, such excess may be carried | ||||||
2 | forward and applied
to the tax liability of the 5 taxable | ||||||
3 | years following the excess credit
years. The credit shall | ||||||
4 | be applied to the earliest year for which there is
a | ||||||
5 | liability. If there is credit from more than one tax year | ||||||
6 | that is
available to offset a liability, earlier credit | ||||||
7 | shall be applied first. | ||||||
8 | (2) The term "qualified property" means property | ||||||
9 | which: | ||||||
10 | (A) is tangible, whether new or used, including | ||||||
11 | buildings and structural
components of buildings and | ||||||
12 | signs that are real property, but not including
land or | ||||||
13 | improvements to real property that are not a structural | ||||||
14 | component of a
building such as landscaping, sewer | ||||||
15 | lines, local access roads, fencing, parking
lots, and | ||||||
16 | other appurtenances; | ||||||
17 | (B) is depreciable pursuant to Section 167 of the | ||||||
18 | Internal Revenue Code,
except that "3-year property" | ||||||
19 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
20 | eligible for the credit provided by this subsection | ||||||
21 | (e); | ||||||
22 | (C) is acquired by purchase as defined in Section | ||||||
23 | 179(d) of
the Internal Revenue Code; | ||||||
24 | (D) is used in Illinois by a taxpayer who is | ||||||
25 | primarily engaged in
manufacturing, or in mining coal | ||||||
26 | or fluorite, or in retailing, or was placed in service |
| |||||||
| |||||||
1 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
2 | Zone established pursuant to the River Edge | ||||||
3 | Redevelopment Zone Act; and | ||||||
4 | (E) has not previously been used in Illinois in | ||||||
5 | such a manner and by
such a person as would qualify for | ||||||
6 | the credit provided by this subsection
(e) or | ||||||
7 | subsection (f). | ||||||
8 | (3) For purposes of this subsection (e), | ||||||
9 | "manufacturing" means
the material staging and production | ||||||
10 | of tangible personal property by
procedures commonly | ||||||
11 | regarded as manufacturing, processing, fabrication, or
| ||||||
12 | assembling which changes some existing material into new | ||||||
13 | shapes, new
qualities, or new combinations. For purposes of | ||||||
14 | this subsection
(e) the term "mining" shall have the same | ||||||
15 | meaning as the term "mining" in
Section 613(c) of the | ||||||
16 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
17 | the term "retailing" means the sale of tangible personal | ||||||
18 | property for use or consumption and not for resale, or
| ||||||
19 | services rendered in conjunction with the sale of tangible | ||||||
20 | personal property for use or consumption and not for | ||||||
21 | resale. For purposes of this subsection (e), "tangible | ||||||
22 | personal property" has the same meaning as when that term | ||||||
23 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
24 | taxable years ending after December 31, 2008, does not | ||||||
25 | include the generation, transmission, or distribution of | ||||||
26 | electricity. |
| |||||||
| |||||||
1 | (4) The basis of qualified property shall be the basis
| ||||||
2 | used to compute the depreciation deduction for federal | ||||||
3 | income tax purposes. | ||||||
4 | (5) If the basis of the property for federal income tax | ||||||
5 | depreciation
purposes is increased after it has been placed | ||||||
6 | in service in Illinois by
the taxpayer, the amount of such | ||||||
7 | increase shall be deemed property placed
in service on the | ||||||
8 | date of such increase in basis. | ||||||
9 | (6) The term "placed in service" shall have the same
| ||||||
10 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
11 | (7) If during any taxable year, any property ceases to
| ||||||
12 | be qualified property in the hands of the taxpayer within | ||||||
13 | 48 months after
being placed in service, or the situs of | ||||||
14 | any qualified property is
moved outside Illinois within 48 | ||||||
15 | months after being placed in service, the
Personal Property | ||||||
16 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
17 | increased. Such increase shall be determined by (i) | ||||||
18 | recomputing the
investment credit which would have been | ||||||
19 | allowed for the year in which
credit for such property was | ||||||
20 | originally allowed by eliminating such
property from such | ||||||
21 | computation and, (ii) subtracting such recomputed credit
| ||||||
22 | from the amount of credit previously allowed. For the | ||||||
23 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
24 | qualified property resulting
from a redetermination of the | ||||||
25 | purchase price shall be deemed a disposition
of qualified | ||||||
26 | property to the extent of such reduction. |
| |||||||
| |||||||
1 | (8) Unless the investment credit is extended by law, | ||||||
2 | the
basis of qualified property shall not include costs | ||||||
3 | incurred after
December 31, 2018 2013 , except for costs | ||||||
4 | incurred pursuant to a binding
contract entered into on or | ||||||
5 | before December 31, 2018 2013 . | ||||||
6 | (9) Each taxable year ending before December 31, 2000, | ||||||
7 | a partnership may
elect to pass through to its
partners the | ||||||
8 | credits to which the partnership is entitled under this | ||||||
9 | subsection
(e) for the taxable year. A partner may use the | ||||||
10 | credit allocated to him or her
under this paragraph only | ||||||
11 | against the tax imposed in subsections (c) and (d) of
this | ||||||
12 | Section. If the partnership makes that election, those | ||||||
13 | credits shall be
allocated among the partners in the | ||||||
14 | partnership in accordance with the rules
set forth in | ||||||
15 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
16 | promulgated under that Section, and the allocated amount of | ||||||
17 | the credits shall
be allowed to the partners for that | ||||||
18 | taxable year. The partnership shall make
this election on | ||||||
19 | its Personal Property Tax Replacement Income Tax return for
| ||||||
20 | that taxable year. The election to pass through the credits | ||||||
21 | shall be
irrevocable. | ||||||
22 | For taxable years ending on or after December 31, 2000, | ||||||
23 | a
partner that qualifies its
partnership for a subtraction | ||||||
24 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
25 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
26 | S
corporation for a subtraction under subparagraph (S) of |
| |||||||
| |||||||
1 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
2 | allowed a credit under this subsection
(e) equal to its | ||||||
3 | share of the credit earned under this subsection (e) during
| ||||||
4 | the taxable year by the partnership or Subchapter S | ||||||
5 | corporation, determined in
accordance with the | ||||||
6 | determination of income and distributive share of
income | ||||||
7 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
8 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
9 | of Section 250. | ||||||
10 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
11 | Redevelopment Zone. | ||||||
12 | (1) A taxpayer shall be allowed a credit against the | ||||||
13 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
14 | investment in qualified
property which is placed in service | ||||||
15 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
16 | Enterprise Zone Act or, for property placed in service on | ||||||
17 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
18 | established pursuant to the River Edge Redevelopment Zone | ||||||
19 | Act. For partners, shareholders
of Subchapter S | ||||||
20 | corporations, and owners of limited liability companies,
| ||||||
21 | if the liability company is treated as a partnership for | ||||||
22 | purposes of
federal and State income taxation, there shall | ||||||
23 | be allowed a credit under
this subsection (f) to be | ||||||
24 | determined in accordance with the determination
of income | ||||||
25 | and distributive share of income under Sections 702 and 704 | ||||||
26 | and
Subchapter S of the Internal Revenue Code. The credit |
| |||||||
| |||||||
1 | shall be .5% of the
basis for such property. The credit | ||||||
2 | shall be available only in the taxable
year in which the | ||||||
3 | property is placed in service in the Enterprise Zone or | ||||||
4 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
5 | the extent that it would reduce a taxpayer's
liability for | ||||||
6 | the tax imposed by subsections (a) and (b) of this Section | ||||||
7 | to
below zero. For tax years ending on or after December | ||||||
8 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
9 | which the property is placed in
service, or, if the amount | ||||||
10 | of the credit exceeds the tax liability for that
year, | ||||||
11 | whether it exceeds the original liability or the liability | ||||||
12 | as later
amended, such excess may be carried forward and | ||||||
13 | applied to the tax
liability of the 5 taxable years | ||||||
14 | following the excess credit year.
The credit shall be | ||||||
15 | applied to the earliest year for which there is a
| ||||||
16 | liability. If there is credit from more than one tax year | ||||||
17 | that is available
to offset a liability, the credit | ||||||
18 | accruing first in time shall be applied
first. | ||||||
19 | (2) The term qualified property means property which: | ||||||
20 | (A) is tangible, whether new or used, including | ||||||
21 | buildings and
structural components of buildings; | ||||||
22 | (B) is depreciable pursuant to Section 167 of the | ||||||
23 | Internal Revenue
Code, except that "3-year property" | ||||||
24 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
25 | eligible for the credit provided by this subsection | ||||||
26 | (f); |
| |||||||
| |||||||
1 | (C) is acquired by purchase as defined in Section | ||||||
2 | 179(d) of
the Internal Revenue Code; | ||||||
3 | (D) is used in the Enterprise Zone or River Edge | ||||||
4 | Redevelopment Zone by the taxpayer; and | ||||||
5 | (E) has not been previously used in Illinois in | ||||||
6 | such a manner and by
such a person as would qualify for | ||||||
7 | the credit provided by this subsection
(f) or | ||||||
8 | subsection (e). | ||||||
9 | (3) The basis of qualified property shall be the basis | ||||||
10 | used to compute
the depreciation deduction for federal | ||||||
11 | income tax purposes. | ||||||
12 | (4) If the basis of the property for federal income tax | ||||||
13 | depreciation
purposes is increased after it has been placed | ||||||
14 | in service in the Enterprise
Zone or River Edge | ||||||
15 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
16 | increase shall be deemed property
placed in service on the | ||||||
17 | date of such increase in basis. | ||||||
18 | (5) The term "placed in service" shall have the same | ||||||
19 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
20 | (6) If during any taxable year, any property ceases to | ||||||
21 | be qualified
property in the hands of the taxpayer within | ||||||
22 | 48 months after being placed
in service, or the situs of | ||||||
23 | any qualified property is moved outside the
Enterprise Zone | ||||||
24 | or River Edge Redevelopment Zone within 48 months after | ||||||
25 | being placed in service, the tax
imposed under subsections | ||||||
26 | (a) and (b) of this Section for such taxable year
shall be |
| |||||||
| |||||||
1 | increased. Such increase shall be determined by (i) | ||||||
2 | recomputing
the investment credit which would have been | ||||||
3 | allowed for the year in which
credit for such property was | ||||||
4 | originally allowed by eliminating such
property from such | ||||||
5 | computation, and (ii) subtracting such recomputed credit
| ||||||
6 | from the amount of credit previously allowed. For the | ||||||
7 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
8 | qualified property resulting
from a redetermination of the | ||||||
9 | purchase price shall be deemed a disposition
of qualified | ||||||
10 | property to the extent of such reduction. | ||||||
11 | (7) There shall be allowed an additional credit equal | ||||||
12 | to 0.5% of the basis of qualified property placed in | ||||||
13 | service during the taxable year in a River Edge | ||||||
14 | Redevelopment Zone, provided such property is placed in | ||||||
15 | service on or after July 1, 2006, and the taxpayer's base | ||||||
16 | employment within Illinois has increased by 1% or more over | ||||||
17 | the preceding year as determined by the taxpayer's | ||||||
18 | employment records filed with the Illinois Department of | ||||||
19 | Employment Security. Taxpayers who are new to Illinois | ||||||
20 | shall be deemed to have met the 1% growth in base | ||||||
21 | employment for the first year in which they file employment | ||||||
22 | records with the Illinois Department of Employment | ||||||
23 | Security. If, in any year, the increase in base employment | ||||||
24 | within Illinois over the preceding year is less than 1%, | ||||||
25 | the additional credit shall be limited to that percentage | ||||||
26 | times a fraction, the numerator of which is 0.5% and the |
| |||||||
| |||||||
1 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
2 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
3 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone. | ||||||
4 | (1) A taxpayer conducting a trade or business in an | ||||||
5 | enterprise zone
or a High Impact Business designated by the | ||||||
6 | Department of Commerce and
Economic Opportunity or for | ||||||
7 | taxable years ending on or after December 31, 2006, in a | ||||||
8 | River Edge Redevelopment Zone conducting a trade or | ||||||
9 | business in a federally designated
Foreign Trade Zone or | ||||||
10 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
11 | by subsections (a) and (b) of this Section in the amount of | ||||||
12 | $500
per eligible employee hired to work in the zone during | ||||||
13 | the taxable year. | ||||||
14 | (2) To qualify for the credit: | ||||||
15 | (A) the taxpayer must hire 5 or more eligible | ||||||
16 | employees to work in an
enterprise zone, River Edge | ||||||
17 | Redevelopment Zone, or federally designated Foreign | ||||||
18 | Trade Zone or Sub-Zone
during the taxable year; | ||||||
19 | (B) the taxpayer's total employment within the | ||||||
20 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
21 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
22 | must
increase by 5 or more full-time employees beyond | ||||||
23 | the total employed in that
zone at the end of the | ||||||
24 | previous tax year for which a jobs tax
credit under | ||||||
25 | this Section was taken, or beyond the total employed by | ||||||
26 | the
taxpayer as of December 31, 1985, whichever is |
| |||||||
| |||||||
1 | later; and | ||||||
2 | (C) the eligible employees must be employed 180 | ||||||
3 | consecutive days in
order to be deemed hired for | ||||||
4 | purposes of this subsection. | ||||||
5 | (3) An "eligible employee" means an employee who is: | ||||||
6 | (A) Certified by the Department of Commerce and | ||||||
7 | Economic Opportunity
as "eligible for services" | ||||||
8 | pursuant to regulations promulgated in
accordance with | ||||||
9 | Title II of the Job Training Partnership Act, Training
| ||||||
10 | Services for the Disadvantaged or Title III of the Job | ||||||
11 | Training Partnership
Act, Employment and Training | ||||||
12 | Assistance for Dislocated Workers Program. | ||||||
13 | (B) Hired after the enterprise zone, River Edge | ||||||
14 | Redevelopment Zone, or federally designated Foreign
| ||||||
15 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
16 | business was located in that zone, whichever is later. | ||||||
17 | (C) Employed in the enterprise zone, River Edge | ||||||
18 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
19 | An employee is employed in an
enterprise zone or | ||||||
20 | federally designated Foreign Trade Zone or Sub-Zone
if | ||||||
21 | his services are rendered there or it is the base of
| ||||||
22 | operations for the services performed. | ||||||
23 | (D) A full-time employee working 30 or more hours | ||||||
24 | per week. | ||||||
25 | (4) For tax years ending on or after December 31, 1985 | ||||||
26 | and prior to
December 31, 1988, the credit shall be allowed |
| |||||||
| |||||||
1 | for the tax year in which
the eligible employees are hired. | ||||||
2 | For tax years ending on or after
December 31, 1988, the | ||||||
3 | credit shall be allowed for the tax year immediately
| ||||||
4 | following the tax year in which the eligible employees are | ||||||
5 | hired. If the
amount of the credit exceeds the tax | ||||||
6 | liability for that year, whether it
exceeds the original | ||||||
7 | liability or the liability as later amended, such
excess | ||||||
8 | may be carried forward and applied to the tax liability of | ||||||
9 | the 5
taxable years following the excess credit year. The | ||||||
10 | credit shall be
applied to the earliest year for which | ||||||
11 | there is a liability. If there is
credit from more than one | ||||||
12 | tax year that is available to offset a liability,
earlier | ||||||
13 | credit shall be applied first. | ||||||
14 | (5) The Department of Revenue shall promulgate such | ||||||
15 | rules and regulations
as may be deemed necessary to carry | ||||||
16 | out the purposes of this subsection (g). | ||||||
17 | (6) The credit shall be available for eligible | ||||||
18 | employees hired on or
after January 1, 1986. | ||||||
19 | (h) Investment credit; High Impact Business. | ||||||
20 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
21 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
22 | allowed a credit
against the tax imposed by subsections (a) | ||||||
23 | and (b) of this Section for
investment in qualified
| ||||||
24 | property which is placed in service by a Department of | ||||||
25 | Commerce and Economic Opportunity
designated High Impact | ||||||
26 | Business. The credit shall be .5% of the basis
for such |
| |||||||
| |||||||
1 | property. The credit shall not be available (i) until the | ||||||
2 | minimum
investments in qualified property set forth in | ||||||
3 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
4 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
5 | time authorized in subsection (b-5) of the Illinois
| ||||||
6 | Enterprise Zone Act for entities designated as High Impact | ||||||
7 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
8 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
9 | Act, and shall not be allowed to the extent that it would
| ||||||
10 | reduce a taxpayer's liability for the tax imposed by | ||||||
11 | subsections (a) and (b) of
this Section to below zero. The | ||||||
12 | credit applicable to such investments shall be
taken in the | ||||||
13 | taxable year in which such investments have been completed. | ||||||
14 | The
credit for additional investments beyond the minimum | ||||||
15 | investment by a designated
high impact business authorized | ||||||
16 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
17 | Enterprise Zone Act shall be available only in the taxable | ||||||
18 | year in
which the property is placed in service and shall | ||||||
19 | not be allowed to the extent
that it would reduce a | ||||||
20 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
21 | and (b) of this Section to below zero.
For tax years ending | ||||||
22 | on or after December 31, 1987, the credit shall be
allowed | ||||||
23 | for the tax year in which the property is placed in | ||||||
24 | service, or, if
the amount of the credit exceeds the tax | ||||||
25 | liability for that year, whether
it exceeds the original | ||||||
26 | liability or the liability as later amended, such
excess |
| |||||||
| |||||||
1 | may be carried forward and applied to the tax liability of | ||||||
2 | the 5
taxable years following the excess credit year. The | ||||||
3 | credit shall be
applied to the earliest year for which | ||||||
4 | there is a liability. If there is
credit from more than one | ||||||
5 | tax year that is available to offset a liability,
the | ||||||
6 | credit accruing first in time shall be applied first. | ||||||
7 | Changes made in this subdivision (h)(1) by Public Act | ||||||
8 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
9 | reflect existing law. | ||||||
10 | (2) The term qualified property means property which: | ||||||
11 | (A) is tangible, whether new or used, including | ||||||
12 | buildings and
structural components of buildings; | ||||||
13 | (B) is depreciable pursuant to Section 167 of the | ||||||
14 | Internal Revenue
Code, except that "3-year property" | ||||||
15 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
16 | eligible for the credit provided by this subsection | ||||||
17 | (h); | ||||||
18 | (C) is acquired by purchase as defined in Section | ||||||
19 | 179(d) of the
Internal Revenue Code; and | ||||||
20 | (D) is not eligible for the Enterprise Zone | ||||||
21 | Investment Credit provided
by subsection (f) of this | ||||||
22 | Section. | ||||||
23 | (3) The basis of qualified property shall be the basis | ||||||
24 | used to compute
the depreciation deduction for federal | ||||||
25 | income tax purposes. | ||||||
26 | (4) If the basis of the property for federal income tax |
| |||||||
| |||||||
1 | depreciation
purposes is increased after it has been placed | ||||||
2 | in service in a federally
designated Foreign Trade Zone or | ||||||
3 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
4 | such increase shall be deemed property placed in service on
| ||||||
5 | the date of such increase in basis. | ||||||
6 | (5) The term "placed in service" shall have the same | ||||||
7 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
8 | (6) If during any taxable year ending on or before | ||||||
9 | December 31, 1996,
any property ceases to be qualified
| ||||||
10 | property in the hands of the taxpayer within 48 months | ||||||
11 | after being placed
in service, or the situs of any | ||||||
12 | qualified property is moved outside
Illinois within 48 | ||||||
13 | months after being placed in service, the tax imposed
under | ||||||
14 | subsections (a) and (b) of this Section for such taxable | ||||||
15 | year shall
be increased. Such increase shall be determined | ||||||
16 | by (i) recomputing the
investment credit which would have | ||||||
17 | been allowed for the year in which
credit for such property | ||||||
18 | was originally allowed by eliminating such
property from | ||||||
19 | such computation, and (ii) subtracting such recomputed | ||||||
20 | credit
from the amount of credit previously allowed. For | ||||||
21 | the purposes of this
paragraph (6), a reduction of the | ||||||
22 | basis of qualified property resulting
from a | ||||||
23 | redetermination of the purchase price shall be deemed a | ||||||
24 | disposition
of qualified property to the extent of such | ||||||
25 | reduction. | ||||||
26 | (7) Beginning with tax years ending after December 31, |
| |||||||
| |||||||
1 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
2 | subsection (h) and thereby is
granted a tax abatement and | ||||||
3 | the taxpayer relocates its entire facility in
violation of | ||||||
4 | the explicit terms and length of the contract under Section
| ||||||
5 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
6 | subsections
(a) and (b) of this Section shall be increased | ||||||
7 | for the taxable year
in which the taxpayer relocated its | ||||||
8 | facility by an amount equal to the
amount of credit | ||||||
9 | received by the taxpayer under this subsection (h). | ||||||
10 | (i) Credit for Personal Property Tax Replacement Income | ||||||
11 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
12 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
13 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
14 | (d) of this Section. This credit shall be computed by | ||||||
15 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
16 | Section by a fraction, the numerator
of which is base income | ||||||
17 | allocable to Illinois and the denominator of which is
Illinois | ||||||
18 | base income, and further multiplying the product by the tax | ||||||
19 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
20 | Any credit earned on or after December 31, 1986 under
this | ||||||
21 | subsection which is unused in the year
the credit is computed | ||||||
22 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
23 | and (b) for that year (whether it exceeds the original
| ||||||
24 | liability or the liability as later amended) may be carried | ||||||
25 | forward and
applied to the tax liability imposed by subsections | ||||||
26 | (a) and (b) of the 5
taxable years following the excess credit |
| |||||||
| |||||||
1 | year, provided that no credit may
be carried forward to any | ||||||
2 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
3 | applied first to the earliest year for which there is a | ||||||
4 | liability. If
there is a credit under this subsection from more | ||||||
5 | than one tax year that is
available to offset a liability the | ||||||
6 | earliest credit arising under this
subsection shall be applied | ||||||
7 | first. | ||||||
8 | If, during any taxable year ending on or after December 31, | ||||||
9 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
10 | Section for which a taxpayer
has claimed a credit under this | ||||||
11 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
12 | shall also be reduced. Such reduction shall be
determined by | ||||||
13 | recomputing the credit to take into account the reduced tax
| ||||||
14 | imposed by subsections (c) and (d). If any portion of the
| ||||||
15 | reduced amount of credit has been carried to a different | ||||||
16 | taxable year, an
amended return shall be filed for such taxable | ||||||
17 | year to reduce the amount of
credit claimed. | ||||||
18 | (j) Training expense credit. Beginning with tax years | ||||||
19 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
20 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
21 | imposed by subsections (a) and (b) under this Section
for all | ||||||
22 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
23 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
24 | of Illinois by a taxpayer, for educational or vocational | ||||||
25 | training in
semi-technical or technical fields or semi-skilled | ||||||
26 | or skilled fields, which
were deducted from gross income in the |
| |||||||
| |||||||
1 | computation of taxable income. The
credit against the tax | ||||||
2 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
3 | training expenses. For partners, shareholders of subchapter S
| ||||||
4 | corporations, and owners of limited liability companies, if the | ||||||
5 | liability
company is treated as a partnership for purposes of | ||||||
6 | federal and State income
taxation, there shall be allowed a | ||||||
7 | credit under this subsection (j) to be
determined in accordance | ||||||
8 | with the determination of income and distributive
share of | ||||||
9 | income under Sections 702 and 704 and subchapter S of the | ||||||
10 | Internal
Revenue Code. | ||||||
11 | Any credit allowed under this subsection which is unused in | ||||||
12 | the year
the credit is earned may be carried forward to each of | ||||||
13 | the 5 taxable
years following the year for which the credit is | ||||||
14 | first computed until it is
used. This credit shall be applied | ||||||
15 | first to the earliest year for which
there is a liability. If | ||||||
16 | there is a credit under this subsection from more
than one tax | ||||||
17 | year that is available to offset a liability the earliest
| ||||||
18 | credit arising under this subsection shall be applied first. No | ||||||
19 | carryforward
credit may be claimed in any tax year ending on or | ||||||
20 | after
December 31, 2003. | ||||||
21 | (k) Research and development credit. | ||||||
22 | For tax years ending after July 1, 1990 and prior to
| ||||||
23 | December 31, 2003, and beginning again for tax years ending on | ||||||
24 | or after December 31, 2004, and ending prior to January 1, 2016 | ||||||
25 | January 1, 2011 , a taxpayer shall be
allowed a credit against | ||||||
26 | the tax imposed by subsections (a) and (b) of this
Section for |
| |||||||
| |||||||
1 | increasing research activities in this State. The credit
| ||||||
2 | allowed against the tax imposed by subsections (a) and (b) | ||||||
3 | shall be equal
to 6 1/2% of the qualifying expenditures for | ||||||
4 | increasing research activities
in this State. For partners, | ||||||
5 | shareholders of subchapter S corporations, and
owners of | ||||||
6 | limited liability companies, if the liability company is | ||||||
7 | treated as a
partnership for purposes of federal and State | ||||||
8 | income taxation, there shall be
allowed a credit under this | ||||||
9 | subsection to be determined in accordance with the
| ||||||
10 | determination of income and distributive share of income under | ||||||
11 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
12 | Code. | ||||||
13 | For purposes of this subsection, "qualifying expenditures" | ||||||
14 | means the
qualifying expenditures as defined for the federal | ||||||
15 | credit for increasing
research activities which would be | ||||||
16 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
17 | which are conducted in this State, "qualifying
expenditures for | ||||||
18 | increasing research activities in this State" means the
excess | ||||||
19 | of qualifying expenditures for the taxable year in which | ||||||
20 | incurred
over qualifying expenditures for the base period, | ||||||
21 | "qualifying expenditures
for the base period" means the average | ||||||
22 | of the qualifying expenditures for
each year in the base | ||||||
23 | period, and "base period" means the 3 taxable years
immediately | ||||||
24 | preceding the taxable year for which the determination is
being | ||||||
25 | made. | ||||||
26 | Any credit in excess of the tax liability for the taxable |
| |||||||
| |||||||
1 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
2 | unused credit shown on its final completed return carried over | ||||||
3 | as a credit
against the tax liability for the following 5 | ||||||
4 | taxable years or until it has
been fully used, whichever occurs | ||||||
5 | first; provided that no credit earned in a tax year ending | ||||||
6 | prior to December 31, 2003 may be carried forward to any year | ||||||
7 | ending on or after December 31, 2003 , and no credit may be | ||||||
8 | carried forward to any taxable year ending on or after January | ||||||
9 | 1, 2011 . | ||||||
10 | If an unused credit is carried forward to a given year from | ||||||
11 | 2 or more
earlier years, that credit arising in the earliest | ||||||
12 | year will be applied
first against the tax liability for the | ||||||
13 | given year. If a tax liability for
the given year still | ||||||
14 | remains, the credit from the next earliest year will
then be | ||||||
15 | applied, and so on, until all credits have been used or no tax
| ||||||
16 | liability for the given year remains. Any remaining unused | ||||||
17 | credit or
credits then will be carried forward to the next | ||||||
18 | following year in which a
tax liability is incurred, except | ||||||
19 | that no credit can be carried forward to
a year which is more | ||||||
20 | than 5 years after the year in which the expense for
which the | ||||||
21 | credit is given was incurred. | ||||||
22 | No inference shall be drawn from this amendatory Act of the | ||||||
23 | 91st General
Assembly in construing this Section for taxable | ||||||
24 | years beginning before January
1, 1999. | ||||||
25 | (l) Environmental Remediation Tax Credit. | ||||||
26 | (i) For tax years ending after December 31, 1997 and on |
| |||||||
| |||||||
1 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
2 | credit against the tax
imposed by subsections (a) and (b) | ||||||
3 | of this Section for certain amounts paid
for unreimbursed | ||||||
4 | eligible remediation costs, as specified in this | ||||||
5 | subsection.
For purposes of this Section, "unreimbursed | ||||||
6 | eligible remediation costs" means
costs approved by the | ||||||
7 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
8 | Section 58.14 of the Environmental Protection Act that were | ||||||
9 | paid in performing
environmental remediation at a site for | ||||||
10 | which a No Further Remediation Letter
was issued by the | ||||||
11 | Agency and recorded under Section 58.10 of the | ||||||
12 | Environmental
Protection Act. The credit must be claimed | ||||||
13 | for the taxable year in which
Agency approval of the | ||||||
14 | eligible remediation costs is granted. The credit is
not | ||||||
15 | available to any taxpayer if the taxpayer or any related | ||||||
16 | party caused or
contributed to, in any material respect, a | ||||||
17 | release of regulated substances on,
in, or under the site | ||||||
18 | that was identified and addressed by the remedial
action | ||||||
19 | pursuant to the Site Remediation Program of the | ||||||
20 | Environmental Protection
Act. After the Pollution Control | ||||||
21 | Board rules are adopted pursuant to the
Illinois | ||||||
22 | Administrative Procedure Act for the administration and | ||||||
23 | enforcement of
Section 58.9 of the Environmental | ||||||
24 | Protection Act, determinations as to credit
availability | ||||||
25 | for purposes of this Section shall be made consistent with | ||||||
26 | those
rules. For purposes of this Section, "taxpayer" |
| |||||||
| |||||||
1 | includes a person whose tax
attributes the taxpayer has | ||||||
2 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
3 | and "related party" includes the persons disallowed a | ||||||
4 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
5 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
6 | a related taxpayer, as well as any of its
partners. The | ||||||
7 | credit allowed against the tax imposed by subsections (a) | ||||||
8 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
9 | remediation costs in
excess of $100,000 per site, except | ||||||
10 | that the $100,000 threshold shall not apply
to any site | ||||||
11 | contained in an enterprise zone as determined by the | ||||||
12 | Department of
Commerce and Community Affairs (now | ||||||
13 | Department of Commerce and Economic Opportunity). The | ||||||
14 | total credit allowed shall not exceed
$40,000 per year with | ||||||
15 | a maximum total of $150,000 per site. For partners and
| ||||||
16 | shareholders of subchapter S corporations, there shall be | ||||||
17 | allowed a credit
under this subsection to be determined in | ||||||
18 | accordance with the determination of
income and | ||||||
19 | distributive share of income under Sections 702 and 704 and
| ||||||
20 | subchapter S of the Internal Revenue Code. | ||||||
21 | (ii) A credit allowed under this subsection that is | ||||||
22 | unused in the year
the credit is earned may be carried | ||||||
23 | forward to each of the 5 taxable years
following the year | ||||||
24 | for which the credit is first earned until it is used.
The | ||||||
25 | term "unused credit" does not include any amounts of | ||||||
26 | unreimbursed eligible
remediation costs in excess of the |
| |||||||
| |||||||
1 | maximum credit per site authorized under
paragraph (i). | ||||||
2 | This credit shall be applied first to the earliest year
for | ||||||
3 | which there is a liability. If there is a credit under this | ||||||
4 | subsection
from more than one tax year that is available to | ||||||
5 | offset a liability, the
earliest credit arising under this | ||||||
6 | subsection shall be applied first. A
credit allowed under | ||||||
7 | this subsection may be sold to a buyer as part of a sale
of | ||||||
8 | all or part of the remediation site for which the credit | ||||||
9 | was granted. The
purchaser of a remediation site and the | ||||||
10 | tax credit shall succeed to the unused
credit and remaining | ||||||
11 | carry-forward period of the seller. To perfect the
| ||||||
12 | transfer, the assignor shall record the transfer in the | ||||||
13 | chain of title for the
site and provide written notice to | ||||||
14 | the Director of the Illinois Department of
Revenue of the | ||||||
15 | assignor's intent to sell the remediation site and the | ||||||
16 | amount of
the tax credit to be transferred as a portion of | ||||||
17 | the sale. In no event may a
credit be transferred to any | ||||||
18 | taxpayer if the taxpayer or a related party would
not be | ||||||
19 | eligible under the provisions of subsection (i). | ||||||
20 | (iii) For purposes of this Section, the term "site" | ||||||
21 | shall have the same
meaning as under Section 58.2 of the | ||||||
22 | Environmental Protection Act. | ||||||
23 | (m) Education expense credit. Beginning with tax years | ||||||
24 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
25 | of one or more qualifying pupils shall be allowed a credit
| ||||||
26 | against the tax imposed by subsections (a) and (b) of this |
| |||||||
| |||||||
1 | Section for
qualified education expenses incurred on behalf of | ||||||
2 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
3 | qualified education expenses, but in no
event may the total | ||||||
4 | credit under this subsection claimed by a
family that is the
| ||||||
5 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
6 | credit under
this subsection reduce the taxpayer's liability | ||||||
7 | under this Act to less than
zero. This subsection is exempt | ||||||
8 | from the provisions of Section 250 of this
Act. | ||||||
9 | For purposes of this subsection: | ||||||
10 | "Qualifying pupils" means individuals who (i) are | ||||||
11 | residents of the State of
Illinois, (ii) are under the age of | ||||||
12 | 21 at the close of the school year for
which a credit is | ||||||
13 | sought, and (iii) during the school year for which a credit
is | ||||||
14 | sought were full-time pupils enrolled in a kindergarten through | ||||||
15 | twelfth
grade education program at any school, as defined in | ||||||
16 | this subsection. | ||||||
17 | "Qualified education expense" means the amount incurred
on | ||||||
18 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
19 | book fees, and
lab fees at the school in which the pupil is | ||||||
20 | enrolled during the regular school
year. | ||||||
21 | "School" means any public or nonpublic elementary or | ||||||
22 | secondary school in
Illinois that is in compliance with Title | ||||||
23 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
24 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
25 | except that nothing shall be construed to require a child to
| ||||||
26 | attend any particular public or nonpublic school to qualify for |
| |||||||
| |||||||
1 | the credit
under this Section. | ||||||
2 | "Custodian" means, with respect to qualifying pupils, an | ||||||
3 | Illinois resident
who is a parent, the parents, a legal | ||||||
4 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
5 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
6 | credit.
| ||||||
7 | (i) For tax years ending on or after December 31, 2006, | ||||||
8 | a taxpayer shall be allowed a credit against the tax | ||||||
9 | imposed by subsections (a) and (b) of this Section for | ||||||
10 | certain amounts paid for unreimbursed eligible remediation | ||||||
11 | costs, as specified in this subsection. For purposes of | ||||||
12 | this Section, "unreimbursed eligible remediation costs" | ||||||
13 | means costs approved by the Illinois Environmental | ||||||
14 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
15 | Environmental Protection Act that were paid in performing | ||||||
16 | environmental remediation at a site within a River Edge | ||||||
17 | Redevelopment Zone for which a No Further Remediation | ||||||
18 | Letter was issued by the Agency and recorded under Section | ||||||
19 | 58.10 of the Environmental Protection Act. The credit must | ||||||
20 | be claimed for the taxable year in which Agency approval of | ||||||
21 | the eligible remediation costs is granted. The credit is | ||||||
22 | not available to any taxpayer if the taxpayer or any | ||||||
23 | related party caused or contributed to, in any material | ||||||
24 | respect, a release of regulated substances on, in, or under | ||||||
25 | the site that was identified and addressed by the remedial | ||||||
26 | action pursuant to the Site Remediation Program of the |
| |||||||
| |||||||
1 | Environmental Protection Act. Determinations as to credit | ||||||
2 | availability for purposes of this Section shall be made | ||||||
3 | consistent with rules adopted by the Pollution Control | ||||||
4 | Board pursuant to the Illinois Administrative Procedure | ||||||
5 | Act for the administration and enforcement of Section 58.9 | ||||||
6 | of the Environmental Protection Act. For purposes of this | ||||||
7 | Section, "taxpayer" includes a person whose tax attributes | ||||||
8 | the taxpayer has succeeded to under Section 381 of the | ||||||
9 | Internal Revenue Code and "related party" includes the | ||||||
10 | persons disallowed a deduction for losses by paragraphs | ||||||
11 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
12 | Code by virtue of being a related taxpayer, as well as any | ||||||
13 | of its partners. The credit allowed against the tax imposed | ||||||
14 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
15 | unreimbursed eligible remediation costs in excess of | ||||||
16 | $100,000 per site. | ||||||
17 | (ii) A credit allowed under this subsection that is | ||||||
18 | unused in the year the credit is earned may be carried | ||||||
19 | forward to each of the 5 taxable years following the year | ||||||
20 | for which the credit is first earned until it is used. This | ||||||
21 | credit shall be applied first to the earliest year for | ||||||
22 | which there is a liability. If there is a credit under this | ||||||
23 | subsection from more than one tax year that is available to | ||||||
24 | offset a liability, the earliest credit arising under this | ||||||
25 | subsection shall be applied first. A credit allowed under | ||||||
26 | this subsection may be sold to a buyer as part of a sale of |
| |||||||
| |||||||
1 | all or part of the remediation site for which the credit | ||||||
2 | was granted. The purchaser of a remediation site and the | ||||||
3 | tax credit shall succeed to the unused credit and remaining | ||||||
4 | carry-forward period of the seller. To perfect the | ||||||
5 | transfer, the assignor shall record the transfer in the | ||||||
6 | chain of title for the site and provide written notice to | ||||||
7 | the Director of the Illinois Department of Revenue of the | ||||||
8 | assignor's intent to sell the remediation site and the | ||||||
9 | amount of the tax credit to be transferred as a portion of | ||||||
10 | the sale. In no event may a credit be transferred to any | ||||||
11 | taxpayer if the taxpayer or a related party would not be | ||||||
12 | eligible under the provisions of subsection (i). | ||||||
13 | (iii) For purposes of this Section, the term "site" | ||||||
14 | shall have the same meaning as under Section 58.2 of the | ||||||
15 | Environmental Protection Act. | ||||||
16 | (Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09; | ||||||
17 | 96-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff. | ||||||
18 | 1-13-11; 97-2, eff. 5-6-11.)
| ||||||
19 | (35 ILCS 5/204) (from Ch. 120, par. 2-204)
| ||||||
20 | Sec. 204. Standard Exemption.
| ||||||
21 | (a) Allowance of exemption. In computing net income under | ||||||
22 | this Act, there
shall be allowed as an exemption the sum of the | ||||||
23 | amounts determined under
subsections (b), (c) and (d), | ||||||
24 | multiplied by a fraction the numerator of which
is the amount | ||||||
25 | of the taxpayer's base income allocable to this State for the
|
| |||||||
| |||||||
1 | taxable year and the denominator of which is the taxpayer's | ||||||
2 | total base income
for the taxable year.
| ||||||
3 | (b) Basic amount. For the purpose of subsection (a) of this | ||||||
4 | Section,
except as provided by subsection (a) of Section 205 | ||||||
5 | and in this
subsection, each taxpayer shall be allowed a basic | ||||||
6 | amount of $1000, except
that for corporations the basic amount | ||||||
7 | shall be zero for tax years ending on
or
after December 31, | ||||||
8 | 2003, and for individuals the basic amount shall be:
| ||||||
9 | (1) for taxable years ending on or after December 31, | ||||||
10 | 1998 and prior to
December 31, 1999, $1,300;
| ||||||
11 | (2) for taxable years ending on or after December 31, | ||||||
12 | 1999 and prior to
December 31, 2000, $1,650;
| ||||||
13 | (3) for taxable years ending on or after December 31, | ||||||
14 | 2000 and prior to December 31, 2012 , $2,000 ; .
| ||||||
15 | (4) for taxable years ending on or after December 31, | ||||||
16 | 2012 and prior to December 31, 2013, $2,050; | ||||||
17 | (5) for taxable years ending on or after December 31, | ||||||
18 | 2013, $2,050 plus the cost-of-living adjustment under | ||||||
19 | subsection (d-5). | ||||||
20 | For taxable years ending on or after December 31, 1992, a | ||||||
21 | taxpayer whose
Illinois base income exceeds the basic amount | ||||||
22 | and who is claimed as a dependent
on another person's tax | ||||||
23 | return under the Internal Revenue Code shall
not be allowed any | ||||||
24 | basic amount under this subsection.
| ||||||
25 | (c) Additional amount for individuals. In the case of an | ||||||
26 | individual
taxpayer, there shall be allowed for the purpose of |
| |||||||
| |||||||
1 | subsection (a), in
addition to the basic amount provided by | ||||||
2 | subsection (b), an additional
exemption equal to the basic | ||||||
3 | amount for each
exemption in excess of one
allowable to such | ||||||
4 | individual taxpayer for the taxable year under Section
151 of | ||||||
5 | the Internal Revenue Code.
| ||||||
6 | (d) Additional exemptions for an individual taxpayer and | ||||||
7 | his or her
spouse. In the case of an individual taxpayer and | ||||||
8 | his or her spouse, he or
she shall each be allowed additional | ||||||
9 | exemptions as follows:
| ||||||
10 | (1) Additional exemption for taxpayer or spouse 65 | ||||||
11 | years of age or older.
| ||||||
12 | (A) For taxpayer. An additional exemption of | ||||||
13 | $1,000 for the taxpayer if
he or she has attained the | ||||||
14 | age of 65 before the end of the taxable year.
| ||||||
15 | (B) For spouse when a joint return is not filed. An | ||||||
16 | additional
exemption of $1,000 for the spouse of the | ||||||
17 | taxpayer if a joint return is not
made by the taxpayer | ||||||
18 | and his spouse, and if the spouse has attained the age
| ||||||
19 | of 65 before the end of such taxable year, and, for the | ||||||
20 | calendar year in
which the taxable year of the taxpayer | ||||||
21 | begins, has no gross income and is
not the dependent of | ||||||
22 | another taxpayer.
| ||||||
23 | (2) Additional exemption for blindness of taxpayer or | ||||||
24 | spouse.
| ||||||
25 | (A) For taxpayer. An additional exemption of | ||||||
26 | $1,000 for the taxpayer if
he or she is blind at the |
| |||||||
| |||||||
1 | end of the taxable year.
| ||||||
2 | (B) For spouse when a joint return is not filed. An | ||||||
3 | additional
exemption of $1,000 for the spouse of the | ||||||
4 | taxpayer if a separate return is made
by the taxpayer, | ||||||
5 | and if the spouse is blind and, for the calendar year | ||||||
6 | in which
the taxable year of the taxpayer begins, has | ||||||
7 | no gross income and is not the
dependent of another | ||||||
8 | taxpayer. For purposes of this paragraph, the
| ||||||
9 | determination of whether the spouse is blind shall be | ||||||
10 | made as of the end of the
taxable year of the taxpayer; | ||||||
11 | except that if the spouse dies during such
taxable year | ||||||
12 | such determination shall be made as of the time of such | ||||||
13 | death.
| ||||||
14 | (C) Blindness defined. For purposes of this | ||||||
15 | subsection, an individual
is blind only if his or her | ||||||
16 | central visual acuity does not exceed 20/200 in
the | ||||||
17 | better eye with correcting lenses, or if his or her | ||||||
18 | visual acuity is
greater than 20/200 but is accompanied | ||||||
19 | by a limitation in the fields of
vision such that the | ||||||
20 | widest diameter of the visual fields subtends an angle
| ||||||
21 | no greater than 20 degrees.
| ||||||
22 | (d-5) Cost-of-living adjustment. For purposes of item (5) | ||||||
23 | of subsection (b), the cost-of-living adjustment for any | ||||||
24 | calendar year and for taxable years ending prior to the end of | ||||||
25 | the subsequent calendar year is equal to $2,050 times the | ||||||
26 | percentage (if any) by which: |
| |||||||
| |||||||
1 | (1) the Consumer Price Index for the preceding calendar | ||||||
2 | year, exceeds | ||||||
3 | (2) the Consumer Price Index for the calendar year | ||||||
4 | 2011. | ||||||
5 | The Consumer Price Index for any calendar year is the | ||||||
6 | average of the Consumer Price Index as of the close of the | ||||||
7 | 12-month period ending on August 31 of that calendar year. | ||||||
8 | The term "Consumer Price Index" means the last Consumer | ||||||
9 | Price Index for All Urban Consumers published by the United | ||||||
10 | States Department of Labor or any successor agency. | ||||||
11 | If any cost-of-living adjustment is not a multiple of $25, | ||||||
12 | that adjustment shall be rounded to the next lowest multiple of | ||||||
13 | $25. | ||||||
14 | (e) Cross reference. See Article 3 for the manner of | ||||||
15 | determining
base income allocable to this State.
| ||||||
16 | (f) Application of Section 250. Section 250 does not apply | ||||||
17 | to the
amendments to this Section made by Public Act 90-613.
| ||||||
18 | (Source: P.A. 97-507, eff. 8-23-11.)
| ||||||
19 | (35 ILCS 5/207) (from Ch. 120, par. 2-207)
| ||||||
20 | Sec. 207. Net Losses.
| ||||||
21 | (a) If after applying all of the (i) modifications
provided | ||||||
22 | for in paragraph (2) of Section 203(b), paragraph (2) of | ||||||
23 | Section
203(c) and paragraph (2) of Section 203(d) and (ii) the | ||||||
24 | allocation and
apportionment provisions of Article 3 of this
| ||||||
25 | Act and subsection (c) of this Section, the taxpayer's net |
| |||||||
| |||||||
1 | income results in a loss;
| ||||||
2 | (1) for any taxable year ending prior to December 31, | ||||||
3 | 1999, such loss
shall be allowed
as a carryover or | ||||||
4 | carryback deduction in the manner allowed under Section
172 | ||||||
5 | of the Internal Revenue Code;
| ||||||
6 | (2) for any taxable year ending on or after December | ||||||
7 | 31, 1999 and prior
to December 31, 2003, such loss
shall be | ||||||
8 | allowed as a carryback to each of the 2 taxable years | ||||||
9 | preceding the
taxable year of such loss and shall be a net | ||||||
10 | operating loss carryover to each of the
20 taxable years | ||||||
11 | following the taxable year of such loss; and
| ||||||
12 | (3) for any taxable year ending on or after December | ||||||
13 | 31, 2003, such loss
shall be allowed as a net operating | ||||||
14 | loss carryover to each of the 12 taxable years
following | ||||||
15 | the taxable year of such loss, except as provided in | ||||||
16 | subsection (d).
| ||||||
17 | (a-5) Election to relinquish carryback and order of | ||||||
18 | application of
losses.
| ||||||
19 | (A) For losses incurred in tax years ending prior | ||||||
20 | to December 31,
2003, the taxpayer may elect to | ||||||
21 | relinquish the entire carryback period
with respect to | ||||||
22 | such loss. Such election shall be made in the form and | ||||||
23 | manner
prescribed by the Department and shall be made | ||||||
24 | by the due date (including
extensions of time) for | ||||||
25 | filing the taxpayer's return for the taxable year in
| ||||||
26 | which such loss is incurred, and such election, once |
| |||||||
| |||||||
1 | made, shall be
irrevocable.
| ||||||
2 | (B) The entire amount of such loss shall be carried | ||||||
3 | to the earliest
taxable year to which such loss may be | ||||||
4 | carried. The amount of such loss which
shall be carried | ||||||
5 | to each of the other taxable years shall be the excess, | ||||||
6 | if
any, of the amount of such loss over the sum of the | ||||||
7 | deductions for carryback or
carryover of such loss | ||||||
8 | allowable for each of the prior taxable years to which
| ||||||
9 | such loss may be carried.
| ||||||
10 | (b) Any loss determined under subsection (a) of this | ||||||
11 | Section must be carried
back or carried forward in the same | ||||||
12 | manner for purposes of subsections (a)
and (b) of Section 201 | ||||||
13 | of this Act as for purposes of subsections (c) and
(d) of | ||||||
14 | Section 201 of this Act.
| ||||||
15 | (c) Notwithstanding any other provision of this Act, for | ||||||
16 | each taxable year ending on or after December 31, 2008, for | ||||||
17 | purposes of computing the loss for the taxable year under | ||||||
18 | subsection (a) of this Section and the deduction taken into | ||||||
19 | account for the taxable year for a net operating loss carryover | ||||||
20 | under paragraphs (1), (2), and (3) of subsection (a) of this | ||||||
21 | Section, the loss and net operating loss carryover shall be | ||||||
22 | reduced in an amount equal to the reduction to the net | ||||||
23 | operating loss and net operating loss carryover to the taxable | ||||||
24 | year, respectively, required under Section 108(b)(2)(A) of the | ||||||
25 | Internal Revenue Code, multiplied by a fraction, the numerator | ||||||
26 | of which is the amount of discharge of indebtedness income that |
| |||||||
| |||||||
1 | is excluded from gross income for the taxable year (but only if | ||||||
2 | the taxable year ends on or after December 31, 2008) under | ||||||
3 | Section 108(a) of the Internal Revenue Code and that would have | ||||||
4 | been allocated and apportioned to this State under Article 3 of | ||||||
5 | this Act but for that exclusion, and the denominator of which | ||||||
6 | is the total amount of discharge of indebtedness income | ||||||
7 | excluded from gross income under Section 108(a) of the Internal | ||||||
8 | Revenue Code for the taxable year. The reduction required under | ||||||
9 | this subsection (c) shall be made after the determination of | ||||||
10 | Illinois net income for the taxable year in which the | ||||||
11 | indebtedness is discharged.
| ||||||
12 | (d) In the case of a corporation (other than a Subchapter S | ||||||
13 | corporation), no carryover deduction shall be allowed under | ||||||
14 | this Section for any taxable year ending after December 31, | ||||||
15 | 2010 and prior to December 31, 2012, and no carryover deduction | ||||||
16 | shall exceed $100,000 for any taxable year ending on or after | ||||||
17 | December 31, 2012 and prior to December 31, 2014; provided | ||||||
18 | that, for purposes of determining the taxable years to which a | ||||||
19 | net loss may be carried under subsection (a) of this Section, | ||||||
20 | no taxable year for which a deduction is disallowed under this | ||||||
21 | subsection , or for which the deduction would exceed $100,000 if | ||||||
22 | not for this subsection, shall be counted. | ||||||
23 | (e) In the case of a residual interest holder in a real | ||||||
24 | estate mortgage investment conduit subject to Section 860E of | ||||||
25 | the Internal Revenue Code, the net loss in subsection (a) shall | ||||||
26 | be equal to: |
| |||||||
| |||||||
1 | (1) the amount computed under subsection (a), without | ||||||
2 | regard to this subsection (e), or if that amount is | ||||||
3 | positive, zero; | ||||||
4 | (2) minus an amount equal to the amount computed under | ||||||
5 | subsection (a), without regard to this subsection (e), | ||||||
6 | minus the amount that would be computed under subsection | ||||||
7 | (a) if the taxpayer's federal taxable income were computed | ||||||
8 | without regard to Section 860E of the Internal Revenue Code | ||||||
9 | and without regard to this subsection (e). | ||||||
10 | The modification in this subsection (e) is exempt from the | ||||||
11 | provisions of Section 250. | ||||||
12 | (Source: P.A. 96-1496, eff. 1-13-11; 97-507, eff. 8-23-11.)
| ||||||
13 | (35 ILCS 5/212)
| ||||||
14 | Sec. 212. Earned income tax credit.
| ||||||
15 | (a) With respect to the federal earned income tax credit | ||||||
16 | allowed for the
taxable year under Section 32 of the federal | ||||||
17 | Internal Revenue Code, 26 U.S.C.
32, each individual taxpayer | ||||||
18 | is entitled to a credit against the tax imposed by
subsections | ||||||
19 | (a) and (b) of Section 201 in an amount equal to
(i) 5% of the | ||||||
20 | federal tax credit for each taxable year beginning on or after
| ||||||
21 | January 1,
2000 and ending prior to December 31, 2012, (ii) | ||||||
22 | 7.5% of the federal tax credit for each taxable year beginning | ||||||
23 | on or after January 1, 2012 and ending prior to December 31, | ||||||
24 | 2013, and (iii) 10% of the federal tax credit for each taxable | ||||||
25 | year beginning on or after January 1, 2013 .
|
| |||||||
| |||||||
1 | For a non-resident or part-year resident, the amount of the | ||||||
2 | credit under this
Section shall be in proportion to the amount | ||||||
3 | of income attributable to this
State.
| ||||||
4 | (b) For taxable years beginning before January 1, 2003, in | ||||||
5 | no event
shall a credit under this Section reduce the | ||||||
6 | taxpayer's
liability to less than zero. For each taxable year | ||||||
7 | beginning on or after
January 1, 2003, if the amount of the | ||||||
8 | credit exceeds the income tax liability
for the applicable tax | ||||||
9 | year, then the excess credit shall be refunded to the
taxpayer. | ||||||
10 | The amount of a refund shall not be included in the taxpayer's
| ||||||
11 | income or resources for the purposes of determining eligibility | ||||||
12 | or benefit
level in any means-tested benefit program | ||||||
13 | administered by a governmental entity
unless required by | ||||||
14 | federal law.
| ||||||
15 | (c) This Section is exempt from the provisions of Section | ||||||
16 | 250.
| ||||||
17 | (Source: P.A. 95-333, eff. 8-21-07.)
| ||||||
18 | (35 ILCS 5/250)
| ||||||
19 | Sec. 250. Sunset of exemptions, credits, and deductions. | ||||||
20 | (a) The application
of every exemption, credit, and | ||||||
21 | deduction against tax imposed by this Act that
becomes law | ||||||
22 | after the effective date of this amendatory Act of 1994 shall | ||||||
23 | be
limited by a reasonable and appropriate sunset date. A | ||||||
24 | taxpayer is not
entitled to take the exemption, credit, or | ||||||
25 | deduction for tax years beginning on
or after the sunset
date. |
| |||||||
| |||||||
1 | Except as provided in subsection (b) of this Section, if If a | ||||||
2 | reasonable and appropriate sunset date is not
specified in the | ||||||
3 | Public Act that creates the exemption, credit, or deduction, a
| ||||||
4 | taxpayer shall not be entitled to take the exemption, credit, | ||||||
5 | or deduction for
tax years beginning on or after 5 years after | ||||||
6 | the effective date of the Public
Act creating the
exemption, | ||||||
7 | credit, or deduction and thereafter; provided, however, that in
| ||||||
8 | the case of any Public Act authorizing the issuance of | ||||||
9 | tax-exempt obligations
that does not specify a sunset date for | ||||||
10 | the exemption or deduction of income
derived from the | ||||||
11 | obligations, the exemption or deduction shall not terminate
| ||||||
12 | until after the obligations have been paid by the issuer.
| ||||||
13 | (b) Notwithstanding the provisions of subsection (a) of | ||||||
14 | this Section, the sunset date of any exemption, credit, or | ||||||
15 | deduction that is scheduled to expire in 2011, 2012, or 2013 by | ||||||
16 | operation of this Section shall be extended by 5 years. | ||||||
17 | (Source: P.A. 88-660, eff. 9-16-94; 89-460, eff. 5-24-96.)
| ||||||
18 | (35 ILCS 5/304) (from Ch. 120, par. 3-304)
| ||||||
19 | Sec. 304. Business income of persons other than residents.
| ||||||
20 | (a) In general. The business income of a person other than | ||||||
21 | a
resident shall be allocated to this State if such person's | ||||||
22 | business
income is derived solely from this State. If a person | ||||||
23 | other than a
resident derives business income from this State | ||||||
24 | and one or more other
states, then, for tax years ending on or | ||||||
25 | before December 30, 1998, and
except as otherwise provided by |
| |||||||
| |||||||
1 | this Section, such
person's business income shall be | ||||||
2 | apportioned to this State by
multiplying the income by a | ||||||
3 | fraction, the numerator of which is the sum
of the property | ||||||
4 | factor (if any), the payroll factor (if any) and 200% of the
| ||||||
5 | sales factor (if any), and the denominator of which is 4 | ||||||
6 | reduced by the
number of factors other than the sales factor | ||||||
7 | which have a denominator
of zero and by an additional 2 if the | ||||||
8 | sales factor has a denominator of zero.
For tax years ending on | ||||||
9 | or after December 31, 1998, and except as otherwise
provided by | ||||||
10 | this Section, persons other than
residents who derive business | ||||||
11 | income from this State and one or more other
states shall | ||||||
12 | compute their apportionment factor by weighting their | ||||||
13 | property,
payroll, and sales factors as provided in
subsection | ||||||
14 | (h) of this Section.
| ||||||
15 | (1) Property factor.
| ||||||
16 | (A) The property factor is a fraction, the numerator of | ||||||
17 | which is the
average value of the person's real and | ||||||
18 | tangible personal property owned
or rented and used in the | ||||||
19 | trade or business in this State during the
taxable year and | ||||||
20 | the denominator of which is the average value of all
the | ||||||
21 | person's real and tangible personal property owned or | ||||||
22 | rented and
used in the trade or business during the taxable | ||||||
23 | year.
| ||||||
24 | (B) Property owned by the person is valued at its | ||||||
25 | original cost.
Property rented by the person is valued at 8 | ||||||
26 | times the net annual rental
rate. Net annual rental rate is |
| |||||||
| |||||||
1 | the annual rental rate paid by the
person less any annual | ||||||
2 | rental rate received by the person from
sub-rentals.
| ||||||
3 | (C) The average value of property shall be determined | ||||||
4 | by averaging
the values at the beginning and ending of the | ||||||
5 | taxable year but the
Director may require the averaging of | ||||||
6 | monthly values during the taxable
year if reasonably | ||||||
7 | required to reflect properly the average value of the
| ||||||
8 | person's property.
| ||||||
9 | (2) Payroll factor.
| ||||||
10 | (A) The payroll factor is a fraction, the numerator of | ||||||
11 | which is the
total amount paid in this State during the | ||||||
12 | taxable year by the person
for compensation, and the | ||||||
13 | denominator of which is the total compensation
paid | ||||||
14 | everywhere during the taxable year.
| ||||||
15 | (B) Compensation is paid in this State if:
| ||||||
16 | (i) The individual's service is performed entirely | ||||||
17 | within this
State;
| ||||||
18 | (ii) The individual's service is performed both | ||||||
19 | within and without
this State, but the service | ||||||
20 | performed without this State is incidental
to the | ||||||
21 | individual's service performed within this State; or
| ||||||
22 | (iii) Some of the service is performed within this | ||||||
23 | State and either
the base of operations, or if there is | ||||||
24 | no base of operations, the place
from which the service | ||||||
25 | is directed or controlled is within this State,
or the | ||||||
26 | base of operations or the place from which the service |
| |||||||
| |||||||
1 | is
directed or controlled is not in any state in which | ||||||
2 | some part of the
service is performed, but the | ||||||
3 | individual's residence is in this State.
| ||||||
4 | (iv) Compensation paid to nonresident professional | ||||||
5 | athletes. | ||||||
6 | (a) General. The Illinois source income of a | ||||||
7 | nonresident individual who is a member of a | ||||||
8 | professional athletic team includes the portion of the | ||||||
9 | individual's total compensation for services performed | ||||||
10 | as a member of a professional athletic team during the | ||||||
11 | taxable year which the number of duty days spent within | ||||||
12 | this State performing services for the team in any | ||||||
13 | manner during the taxable year bears to the total | ||||||
14 | number of duty days spent both within and without this | ||||||
15 | State during the taxable year. | ||||||
16 | (b) Travel days. Travel days that do not involve | ||||||
17 | either a game, practice, team meeting, or other similar | ||||||
18 | team event are not considered duty days spent in this | ||||||
19 | State. However, such travel days are considered in the | ||||||
20 | total duty days spent both within and without this | ||||||
21 | State. | ||||||
22 | (c) Definitions. For purposes of this subpart | ||||||
23 | (iv): | ||||||
24 | (1) The term "professional athletic team" | ||||||
25 | includes, but is not limited to, any professional | ||||||
26 | baseball, basketball, football, soccer, or hockey |
| |||||||
| |||||||
1 | team. | ||||||
2 | (2) The term "member of a professional | ||||||
3 | athletic team" includes those employees who are | ||||||
4 | active players, players on the disabled list, and | ||||||
5 | any other persons required to travel and who travel | ||||||
6 | with and perform services on behalf of a | ||||||
7 | professional athletic team on a regular basis. | ||||||
8 | This includes, but is not limited to, coaches, | ||||||
9 | managers, and trainers. | ||||||
10 | (3) Except as provided in items (C) and (D) of | ||||||
11 | this subpart (3), the term "duty days" means all | ||||||
12 | days during the taxable year from the beginning of | ||||||
13 | the professional athletic team's official | ||||||
14 | pre-season training period through the last game | ||||||
15 | in which the team competes or is scheduled to | ||||||
16 | compete. Duty days shall be counted for the year in | ||||||
17 | which they occur, including where a team's | ||||||
18 | official pre-season training period through the | ||||||
19 | last game in which the team competes or is | ||||||
20 | scheduled to compete, occurs during more than one | ||||||
21 | tax year. | ||||||
22 | (A) Duty days shall also include days on | ||||||
23 | which a member of a professional athletic team | ||||||
24 | performs service for a team on a date that does | ||||||
25 | not fall within the foregoing period (e.g., | ||||||
26 | participation in instructional leagues, the |
| |||||||
| |||||||
1 | "All Star Game", or promotional "caravans"). | ||||||
2 | Performing a service for a professional | ||||||
3 | athletic team includes conducting training and | ||||||
4 | rehabilitation activities, when such | ||||||
5 | activities are conducted at team facilities. | ||||||
6 | (B) Also included in duty days are game | ||||||
7 | days, practice days, days spent at team | ||||||
8 | meetings, promotional caravans, preseason | ||||||
9 | training camps, and days served with the team | ||||||
10 | through all post-season games in which the team | ||||||
11 | competes or is scheduled to compete. | ||||||
12 | (C) Duty days for any person who joins a | ||||||
13 | team during the period from the beginning of | ||||||
14 | the professional athletic team's official | ||||||
15 | pre-season training period through the last | ||||||
16 | game in which the team competes, or is | ||||||
17 | scheduled to compete, shall begin on the day | ||||||
18 | that person joins the team. Conversely, duty | ||||||
19 | days for any person who leaves a team during | ||||||
20 | this period shall end on the day that person | ||||||
21 | leaves the team. Where a person switches teams | ||||||
22 | during a taxable year, a separate duty-day | ||||||
23 | calculation shall be made for the period the | ||||||
24 | person was with each team. | ||||||
25 | (D) Days for which a member of a | ||||||
26 | professional athletic team is not compensated |
| |||||||
| |||||||
1 | and is not performing services for the team in | ||||||
2 | any manner, including days when such member of | ||||||
3 | a professional athletic team has been | ||||||
4 | suspended without pay and prohibited from | ||||||
5 | performing any services for the team, shall not | ||||||
6 | be treated as duty days. | ||||||
7 | (E) Days for which a member of a | ||||||
8 | professional athletic team is on the disabled | ||||||
9 | list and does not conduct rehabilitation | ||||||
10 | activities at facilities of the team, and is | ||||||
11 | not otherwise performing services for the team | ||||||
12 | in Illinois, shall not be considered duty days | ||||||
13 | spent in this State. All days on the disabled | ||||||
14 | list, however, are considered to be included in | ||||||
15 | total duty days spent both within and without | ||||||
16 | this State. | ||||||
17 | (4) The term "total compensation for services | ||||||
18 | performed as a member of a professional athletic | ||||||
19 | team" means the total compensation received during | ||||||
20 | the taxable year for services performed: | ||||||
21 | (A) from the beginning of the official | ||||||
22 | pre-season training period through the last | ||||||
23 | game in which the team competes or is scheduled | ||||||
24 | to compete during that taxable year; and | ||||||
25 | (B) during the taxable year on a date which | ||||||
26 | does not fall within the foregoing period |
| |||||||
| |||||||
1 | (e.g., participation in instructional leagues, | ||||||
2 | the "All Star Game", or promotional caravans). | ||||||
3 | This compensation shall include, but is not | ||||||
4 | limited to, salaries, wages, bonuses as described | ||||||
5 | in this subpart, and any other type of compensation | ||||||
6 | paid during the taxable year to a member of a | ||||||
7 | professional athletic team for services performed | ||||||
8 | in that year. This compensation does not include | ||||||
9 | strike benefits, severance pay, termination pay, | ||||||
10 | contract or option year buy-out payments, | ||||||
11 | expansion or relocation payments, or any other | ||||||
12 | payments not related to services performed for the | ||||||
13 | team. | ||||||
14 | For purposes of this subparagraph, "bonuses" | ||||||
15 | included in "total compensation for services | ||||||
16 | performed as a member of a professional athletic | ||||||
17 | team" subject to the allocation described in | ||||||
18 | Section 302(c)(1) are: bonuses earned as a result | ||||||
19 | of play (i.e., performance bonuses) during the | ||||||
20 | season, including bonuses paid for championship, | ||||||
21 | playoff or "bowl" games played by a team, or for | ||||||
22 | selection to all-star league or other honorary | ||||||
23 | positions; and bonuses paid for signing a | ||||||
24 | contract, unless the payment of the signing bonus | ||||||
25 | is not conditional upon the signee playing any | ||||||
26 | games for the team or performing any subsequent |
| |||||||
| |||||||
1 | services for the team or even making the team, the | ||||||
2 | signing bonus is payable separately from the | ||||||
3 | salary and any other compensation, and the signing | ||||||
4 | bonus is nonrefundable.
| ||||||
5 | (3) Sales factor.
| ||||||
6 | (A) The sales factor is a fraction, the numerator of | ||||||
7 | which is the
total sales of the person in this State during | ||||||
8 | the taxable year, and the
denominator of which is the total | ||||||
9 | sales of the person everywhere during
the taxable year.
| ||||||
10 | (B) Sales of tangible personal property are in this | ||||||
11 | State if:
| ||||||
12 | (i) The property is delivered or shipped to a | ||||||
13 | purchaser, other than
the United States government, | ||||||
14 | within this State regardless of the f. o.
b. point or | ||||||
15 | other conditions of the sale; or
| ||||||
16 | (ii) The property is shipped from an office, store, | ||||||
17 | warehouse,
factory or other place of storage in this | ||||||
18 | State and either the purchaser
is the United States | ||||||
19 | government or the person is not taxable in the
state of | ||||||
20 | the purchaser; provided, however, that premises owned | ||||||
21 | or leased
by a person who has independently contracted | ||||||
22 | with the seller for the printing
of newspapers, | ||||||
23 | periodicals or books shall not be deemed to be an | ||||||
24 | office,
store, warehouse, factory or other place of | ||||||
25 | storage for purposes of this
Section.
Sales of tangible | ||||||
26 | personal property are not in this State if the
seller |
| |||||||
| |||||||
1 | and purchaser would be members of the same unitary | ||||||
2 | business group
but for the fact that either the seller | ||||||
3 | or purchaser is a person with 80%
or more of total | ||||||
4 | business activity outside of the United States and the
| ||||||
5 | property is purchased for resale.
| ||||||
6 | (B-1) Patents, copyrights, trademarks, and similar | ||||||
7 | items of intangible
personal property.
| ||||||
8 | (i) Gross receipts from the licensing, sale, or | ||||||
9 | other disposition of a
patent, copyright, trademark, | ||||||
10 | or similar item of intangible personal property, other | ||||||
11 | than gross receipts governed by paragraph (B-7) of this | ||||||
12 | item (3),
are in this State to the extent the item is | ||||||
13 | utilized in this State during the
year the gross | ||||||
14 | receipts are included in gross income.
| ||||||
15 | (ii) Place of utilization.
| ||||||
16 | (I) A patent is utilized in a state to the | ||||||
17 | extent that it is employed
in production, | ||||||
18 | fabrication, manufacturing, or other processing in | ||||||
19 | the state or
to the extent that a patented product | ||||||
20 | is produced in the state. If a patent is
utilized | ||||||
21 | in
more than one state, the extent to which it is | ||||||
22 | utilized in any one state shall
be a fraction equal | ||||||
23 | to the gross receipts of the licensee or purchaser | ||||||
24 | from
sales or leases of items produced, | ||||||
25 | fabricated, manufactured, or processed
within that | ||||||
26 | state using the patent and of patented items |
| |||||||
| |||||||
1 | produced within that
state, divided by the total of | ||||||
2 | such gross receipts for all states in which the
| ||||||
3 | patent is utilized.
| ||||||
4 | (II) A copyright is utilized in a state to the | ||||||
5 | extent that printing or
other publication | ||||||
6 | originates in the state. If a copyright is utilized | ||||||
7 | in more
than one state, the extent to which it is | ||||||
8 | utilized in any one state shall be a
fraction equal | ||||||
9 | to the gross receipts from sales or licenses of | ||||||
10 | materials
printed or published in that state | ||||||
11 | divided by the total of such gross receipts
for all | ||||||
12 | states in which the copyright is utilized.
| ||||||
13 | (III) Trademarks and other items of intangible | ||||||
14 | personal property
governed by this paragraph (B-1) | ||||||
15 | are utilized in the state in which the
commercial | ||||||
16 | domicile of the licensee or purchaser is located.
| ||||||
17 | (iii) If the state of utilization of an item of | ||||||
18 | property governed by
this paragraph (B-1) cannot be | ||||||
19 | determined from the taxpayer's books and
records or | ||||||
20 | from the books and records of any person related to the | ||||||
21 | taxpayer
within the meaning of Section 267(b) of the | ||||||
22 | Internal Revenue Code, 26 U.S.C.
267, the gross
| ||||||
23 | receipts attributable to that item shall be excluded | ||||||
24 | from both the numerator
and the denominator of the | ||||||
25 | sales factor.
| ||||||
26 | (B-2) Gross receipts from the license, sale, or other |
| |||||||
| |||||||
1 | disposition of
patents, copyrights, trademarks, and | ||||||
2 | similar items of intangible personal
property, other than | ||||||
3 | gross receipts governed by paragraph (B-7) of this item | ||||||
4 | (3), may be included in the numerator or denominator of the | ||||||
5 | sales factor
only if gross receipts from licenses, sales, | ||||||
6 | or other disposition of such items
comprise more than 50% | ||||||
7 | of the taxpayer's total gross receipts included in gross
| ||||||
8 | income during the tax year and during each of the 2 | ||||||
9 | immediately preceding tax
years; provided that, when a | ||||||
10 | taxpayer is a member of a unitary business group,
such | ||||||
11 | determination shall be made on the basis of the gross | ||||||
12 | receipts of the
entire unitary business group.
| ||||||
13 | (B-5) For taxable years ending on or after December 31, | ||||||
14 | 2008, except as provided in subsections (ii) through (vii), | ||||||
15 | receipts from the sale of telecommunications service or | ||||||
16 | mobile telecommunications service are in this State if the | ||||||
17 | customer's service address is in this State. | ||||||
18 | (i) For purposes of this subparagraph (B-5), the | ||||||
19 | following terms have the following meanings: | ||||||
20 | "Ancillary services" means services that are | ||||||
21 | associated with or incidental to the provision of | ||||||
22 | "telecommunications services", including but not | ||||||
23 | limited to "detailed telecommunications billing", | ||||||
24 | "directory assistance", "vertical service", and "voice | ||||||
25 | mail services". | ||||||
26 | "Air-to-Ground Radiotelephone service" means a |
| |||||||
| |||||||
1 | radio service, as that term is defined in 47 CFR 22.99, | ||||||
2 | in which common carriers are authorized to offer and | ||||||
3 | provide radio telecommunications service for hire to | ||||||
4 | subscribers in aircraft. | ||||||
5 | "Call-by-call Basis" means any method of charging | ||||||
6 | for telecommunications services where the price is | ||||||
7 | measured by individual calls. | ||||||
8 | "Communications Channel" means a physical or | ||||||
9 | virtual path of communications over which signals are | ||||||
10 | transmitted between or among customer channel | ||||||
11 | termination points. | ||||||
12 | "Conference bridging service" means an "ancillary | ||||||
13 | service" that links two or more participants of an | ||||||
14 | audio or video conference call and may include the | ||||||
15 | provision of a telephone number. "Conference bridging | ||||||
16 | service" does not include the "telecommunications | ||||||
17 | services" used to reach the conference bridge. | ||||||
18 | "Customer Channel Termination Point" means the | ||||||
19 | location where the customer either inputs or receives | ||||||
20 | the communications. | ||||||
21 | "Detailed telecommunications billing service" | ||||||
22 | means an "ancillary service" of separately stating | ||||||
23 | information pertaining to individual calls on a | ||||||
24 | customer's billing statement. | ||||||
25 | "Directory assistance" means an "ancillary | ||||||
26 | service" of providing telephone number information, |
| |||||||
| |||||||
1 | and/or address information. | ||||||
2 | "Home service provider" means the facilities based | ||||||
3 | carrier or reseller with which the customer contracts | ||||||
4 | for the provision of mobile telecommunications | ||||||
5 | services. | ||||||
6 | "Mobile telecommunications service" means | ||||||
7 | commercial mobile radio service, as defined in Section | ||||||
8 | 20.3 of Title 47 of the Code of Federal Regulations as | ||||||
9 | in effect on June 1, 1999. | ||||||
10 | "Place of primary use" means the street address | ||||||
11 | representative of where the customer's use of the | ||||||
12 | telecommunications service primarily occurs, which | ||||||
13 | must be the residential street address or the primary | ||||||
14 | business street address of the customer. In the case of | ||||||
15 | mobile telecommunications services, "place of primary | ||||||
16 | use" must be within the licensed service area of the | ||||||
17 | home service provider. | ||||||
18 | "Post-paid telecommunication service" means the | ||||||
19 | telecommunications service obtained by making a | ||||||
20 | payment on a call-by-call basis either through the use | ||||||
21 | of a credit card or payment mechanism such as a bank | ||||||
22 | card, travel card, credit card, or debit card, or by | ||||||
23 | charge made to a telephone number which is not | ||||||
24 | associated with the origination or termination of the | ||||||
25 | telecommunications service. A post-paid calling | ||||||
26 | service includes telecommunications service, except a |
| |||||||
| |||||||
1 | prepaid wireless calling service, that would be a | ||||||
2 | prepaid calling service except it is not exclusively a | ||||||
3 | telecommunication service. | ||||||
4 | "Prepaid telecommunication service" means the | ||||||
5 | right to access exclusively telecommunications | ||||||
6 | services, which must be paid for in advance and which | ||||||
7 | enables the origination of calls using an access number | ||||||
8 | or authorization code, whether manually or | ||||||
9 | electronically dialed, and that is sold in | ||||||
10 | predetermined units or dollars of which the number | ||||||
11 | declines with use in a known amount. | ||||||
12 | "Prepaid Mobile telecommunication service" means a | ||||||
13 | telecommunications service that provides the right to | ||||||
14 | utilize mobile wireless service as well as other | ||||||
15 | non-telecommunication services, including but not | ||||||
16 | limited to ancillary services, which must be paid for | ||||||
17 | in advance that is sold in predetermined units or | ||||||
18 | dollars of which the number declines with use in a | ||||||
19 | known amount. | ||||||
20 | "Private communication service" means a | ||||||
21 | telecommunication service that entitles the customer | ||||||
22 | to exclusive or priority use of a communications | ||||||
23 | channel or group of channels between or among | ||||||
24 | termination points, regardless of the manner in which | ||||||
25 | such channel or channels are connected, and includes | ||||||
26 | switching capacity, extension lines, stations, and any |
| |||||||
| |||||||
1 | other associated services that are provided in | ||||||
2 | connection with the use of such channel or channels. | ||||||
3 | "Service address" means: | ||||||
4 | (a) The location of the telecommunications | ||||||
5 | equipment to which a customer's call is charged and | ||||||
6 | from which the call originates or terminates, | ||||||
7 | regardless of where the call is billed or paid; | ||||||
8 | (b) If the location in line (a) is not known, | ||||||
9 | service address means the origination point of the | ||||||
10 | signal of the telecommunications services first | ||||||
11 | identified by either the seller's | ||||||
12 | telecommunications system or in information | ||||||
13 | received by the seller from its service provider | ||||||
14 | where the system used to transport such signals is | ||||||
15 | not that of the seller; and | ||||||
16 | (c) If the locations in line (a) and line (b) | ||||||
17 | are not known, the service address means the | ||||||
18 | location of the customer's place of primary use. | ||||||
19 | "Telecommunications service" means the electronic | ||||||
20 | transmission, conveyance, or routing of voice, data, | ||||||
21 | audio, video, or any other information or signals to a | ||||||
22 | point, or between or among points. The term | ||||||
23 | "telecommunications service" includes such | ||||||
24 | transmission, conveyance, or routing in which computer | ||||||
25 | processing applications are used to act on the form, | ||||||
26 | code or protocol of the content for purposes of |
| |||||||
| |||||||
1 | transmission, conveyance or routing without regard to | ||||||
2 | whether such service is referred to as voice over | ||||||
3 | Internet protocol services or is classified by the | ||||||
4 | Federal Communications Commission as enhanced or value | ||||||
5 | added. "Telecommunications service" does not include: | ||||||
6 | (a) Data processing and information services | ||||||
7 | that allow data to be generated, acquired, stored, | ||||||
8 | processed, or retrieved and delivered by an | ||||||
9 | electronic transmission to a purchaser when such | ||||||
10 | purchaser's primary purpose for the underlying | ||||||
11 | transaction is the processed data or information; | ||||||
12 | (b) Installation or maintenance of wiring or | ||||||
13 | equipment on a customer's premises; | ||||||
14 | (c) Tangible personal property; | ||||||
15 | (d) Advertising, including but not limited to | ||||||
16 | directory advertising. | ||||||
17 | (e) Billing and collection services provided | ||||||
18 | to third parties; | ||||||
19 | (f) Internet access service; | ||||||
20 | (g) Radio and television audio and video | ||||||
21 | programming services, regardless of the medium, | ||||||
22 | including the furnishing of transmission, | ||||||
23 | conveyance and routing of such services by the | ||||||
24 | programming service provider. Radio and television | ||||||
25 | audio and video programming services shall include | ||||||
26 | but not be limited to cable service as defined in |
| |||||||
| |||||||
1 | 47 USC 522(6) and audio and video programming | ||||||
2 | services delivered by commercial mobile radio | ||||||
3 | service providers, as defined in 47 CFR 20.3; | ||||||
4 | (h) "Ancillary services"; or | ||||||
5 | (i) Digital products "delivered | ||||||
6 | electronically", including but not limited to | ||||||
7 | software, music, video, reading materials or ring | ||||||
8 | tones. | ||||||
9 | "Vertical service" means an "ancillary service" | ||||||
10 | that is offered in connection with one or more | ||||||
11 | "telecommunications services", which offers advanced | ||||||
12 | calling features that allow customers to identify | ||||||
13 | callers and to manage multiple calls and call | ||||||
14 | connections, including "conference bridging services". | ||||||
15 | "Voice mail service" means an "ancillary service" | ||||||
16 | that enables the customer to store, send or receive | ||||||
17 | recorded messages. "Voice mail service" does not | ||||||
18 | include any "vertical services" that the customer may | ||||||
19 | be required to have in order to utilize the "voice mail | ||||||
20 | service". | ||||||
21 | (ii) Receipts from the sale of telecommunications | ||||||
22 | service sold on an individual call-by-call basis are in | ||||||
23 | this State if either of the following applies: | ||||||
24 | (a) The call both originates and terminates in | ||||||
25 | this State. | ||||||
26 | (b) The call either originates or terminates |
| |||||||
| |||||||
1 | in this State and the service address is located in | ||||||
2 | this State. | ||||||
3 | (iii) Receipts from the sale of postpaid | ||||||
4 | telecommunications service at retail are in this State | ||||||
5 | if the origination point of the telecommunication | ||||||
6 | signal, as first identified by the service provider's | ||||||
7 | telecommunication system or as identified by | ||||||
8 | information received by the seller from its service | ||||||
9 | provider if the system used to transport | ||||||
10 | telecommunication signals is not the seller's, is | ||||||
11 | located in this State. | ||||||
12 | (iv) Receipts from the sale of prepaid | ||||||
13 | telecommunications service or prepaid mobile | ||||||
14 | telecommunications service at retail are in this State | ||||||
15 | if the purchaser obtains the prepaid card or similar | ||||||
16 | means of conveyance at a location in this State. | ||||||
17 | Receipts from recharging a prepaid telecommunications | ||||||
18 | service or mobile telecommunications service is in | ||||||
19 | this State if the purchaser's billing information | ||||||
20 | indicates a location in this State. | ||||||
21 | (v) Receipts from the sale of private | ||||||
22 | communication services are in this State as follows: | ||||||
23 | (a) 100% of receipts from charges imposed at | ||||||
24 | each channel termination point in this State. | ||||||
25 | (b) 100% of receipts from charges for the total | ||||||
26 | channel mileage between each channel termination |
| |||||||
| |||||||
1 | point in this State. | ||||||
2 | (c) 50% of the total receipts from charges for | ||||||
3 | service segments when those segments are between 2 | ||||||
4 | customer channel termination points, 1 of which is | ||||||
5 | located in this State and the other is located | ||||||
6 | outside of this State, which segments are | ||||||
7 | separately charged. | ||||||
8 | (d) The receipts from charges for service | ||||||
9 | segments with a channel termination point located | ||||||
10 | in this State and in two or more other states, and | ||||||
11 | which segments are not separately billed, are in | ||||||
12 | this State based on a percentage determined by | ||||||
13 | dividing the number of customer channel | ||||||
14 | termination points in this State by the total | ||||||
15 | number of customer channel termination points. | ||||||
16 | (vi) Receipts from charges for ancillary services | ||||||
17 | for telecommunications service sold to customers at | ||||||
18 | retail are in this State if the customer's primary | ||||||
19 | place of use of telecommunications services associated | ||||||
20 | with those ancillary services is in this State. If the | ||||||
21 | seller of those ancillary services cannot determine | ||||||
22 | where the associated telecommunications are located, | ||||||
23 | then the ancillary services shall be based on the | ||||||
24 | location of the purchaser. | ||||||
25 | (vii) Receipts to access a carrier's network or | ||||||
26 | from the sale of telecommunication services or |
| |||||||
| |||||||
1 | ancillary services for resale are in this State as | ||||||
2 | follows: | ||||||
3 | (a) 100% of the receipts from access fees | ||||||
4 | attributable to intrastate telecommunications | ||||||
5 | service that both originates and terminates in | ||||||
6 | this State. | ||||||
7 | (b) 50% of the receipts from access fees | ||||||
8 | attributable to interstate telecommunications | ||||||
9 | service if the interstate call either originates | ||||||
10 | or terminates in this State. | ||||||
11 | (c) 100% of the receipts from interstate end | ||||||
12 | user access line charges, if the customer's | ||||||
13 | service address is in this State. As used in this | ||||||
14 | subdivision, "interstate end user access line | ||||||
15 | charges" includes, but is not limited to, the | ||||||
16 | surcharge approved by the federal communications | ||||||
17 | commission and levied pursuant to 47 CFR 69. | ||||||
18 | (d) Gross receipts from sales of | ||||||
19 | telecommunication services or from ancillary | ||||||
20 | services for telecommunications services sold to | ||||||
21 | other telecommunication service providers for | ||||||
22 | resale shall be sourced to this State using the | ||||||
23 | apportionment concepts used for non-resale | ||||||
24 | receipts of telecommunications services if the | ||||||
25 | information is readily available to make that | ||||||
26 | determination. If the information is not readily |
| |||||||
| |||||||
1 | available, then the taxpayer may use any other | ||||||
2 | reasonable and consistent method. | ||||||
3 | (B-7) For taxable years ending on or after December 31, | ||||||
4 | 2008, receipts from the sale of broadcasting services are | ||||||
5 | in this State if the broadcasting services are received in | ||||||
6 | this State. For purposes of this paragraph (B-7), the | ||||||
7 | following terms have the following meanings: | ||||||
8 | "Advertising revenue" means consideration received | ||||||
9 | by the taxpayer in exchange for broadcasting services | ||||||
10 | or allowing the broadcasting of commercials or | ||||||
11 | announcements in connection with the broadcasting of | ||||||
12 | film or radio programming, from sponsorships of the | ||||||
13 | programming, or from product placements in the | ||||||
14 | programming. | ||||||
15 | "Audience factor" means the ratio that the | ||||||
16 | audience or subscribers located in this State of a | ||||||
17 | station, a network, or a cable system bears to the | ||||||
18 | total audience or total subscribers for that station, | ||||||
19 | network, or cable system. The audience factor for film | ||||||
20 | or radio programming shall be determined by reference | ||||||
21 | to the books and records of the taxpayer or by | ||||||
22 | reference to published rating statistics provided the | ||||||
23 | method used by the taxpayer is consistently used from | ||||||
24 | year to year for this purpose and fairly represents the | ||||||
25 | taxpayer's activity in this State. | ||||||
26 | "Broadcast" or "broadcasting" or "broadcasting |
| |||||||
| |||||||
1 | services" means the transmission or provision of film | ||||||
2 | or radio programming, whether through the public | ||||||
3 | airwaves, by cable, by direct or indirect satellite | ||||||
4 | transmission, or by any other means of communication, | ||||||
5 | either through a station, a network, or a cable system. | ||||||
6 | "Film" or "film programming" means the broadcast | ||||||
7 | on television of any and all performances, events, or | ||||||
8 | productions, including but not limited to news, | ||||||
9 | sporting events, plays, stories, or other literary, | ||||||
10 | commercial, educational, or artistic works, either | ||||||
11 | live or through the use of video tape, disc, or any | ||||||
12 | other type of format or medium. Each episode of a | ||||||
13 | series of films produced for television shall | ||||||
14 | constitute separate "film" notwithstanding that the | ||||||
15 | series relates to the same principal subject and is | ||||||
16 | produced during one or more tax periods. | ||||||
17 | "Radio" or "radio programming" means the broadcast | ||||||
18 | on radio of any and all performances, events, or | ||||||
19 | productions, including but not limited to news, | ||||||
20 | sporting events, plays, stories, or other literary, | ||||||
21 | commercial, educational, or artistic works, either | ||||||
22 | live or through the use of an audio tape, disc, or any | ||||||
23 | other format or medium. Each episode in a series of | ||||||
24 | radio programming produced for radio broadcast shall | ||||||
25 | constitute a separate "radio programming" | ||||||
26 | notwithstanding that the series relates to the same |
| |||||||
| |||||||
1 | principal subject and is produced during one or more | ||||||
2 | tax periods. | ||||||
3 | (i) In the case of advertising revenue from | ||||||
4 | broadcasting, the customer is the advertiser and | ||||||
5 | the service is received in this State if the | ||||||
6 | commercial domicile of the advertiser is in this | ||||||
7 | State. | ||||||
8 | (ii) In the case where film or radio | ||||||
9 | programming is broadcast by a station, a network, | ||||||
10 | or a cable system for a fee or other remuneration | ||||||
11 | received from the recipient of the broadcast, the | ||||||
12 | portion of the service that is received in this | ||||||
13 | State is measured by the portion of the recipients | ||||||
14 | of the broadcast located in this State. | ||||||
15 | Accordingly, the fee or other remuneration for | ||||||
16 | such service that is included in the Illinois | ||||||
17 | numerator of the sales factor is the total of those | ||||||
18 | fees or other remuneration received from | ||||||
19 | recipients in Illinois. For purposes of this | ||||||
20 | paragraph, a taxpayer may determine the location | ||||||
21 | of the recipients of its broadcast using the | ||||||
22 | address of the recipient shown in its contracts | ||||||
23 | with the recipient or using the billing address of | ||||||
24 | the recipient in the taxpayer's records. | ||||||
25 | (iii) In the case where film or radio | ||||||
26 | programming is broadcast by a station, a network, |
| |||||||
| |||||||
1 | or a cable system for a fee or other remuneration | ||||||
2 | from the person providing the programming, the | ||||||
3 | portion of the broadcast service that is received | ||||||
4 | by such station, network, or cable system in this | ||||||
5 | State is measured by the portion of recipients of | ||||||
6 | the broadcast located in this State. Accordingly, | ||||||
7 | the amount of revenue related to such an | ||||||
8 | arrangement that is included in the Illinois | ||||||
9 | numerator of the sales factor is the total fee or | ||||||
10 | other total remuneration from the person providing | ||||||
11 | the programming related to that broadcast | ||||||
12 | multiplied by the Illinois audience factor for | ||||||
13 | that broadcast. | ||||||
14 | (iv) In the case where film or radio | ||||||
15 | programming is provided by a taxpayer that is a | ||||||
16 | network or station to a customer for broadcast in | ||||||
17 | exchange for a fee or other remuneration from that | ||||||
18 | customer the broadcasting service is received at | ||||||
19 | the location of the office of the customer from | ||||||
20 | which the services were ordered in the regular | ||||||
21 | course of the customer's trade or business. | ||||||
22 | Accordingly, in such a case the revenue derived by | ||||||
23 | the taxpayer that is included in the taxpayer's | ||||||
24 | Illinois numerator of the sales factor is the | ||||||
25 | revenue from such customers who receive the | ||||||
26 | broadcasting service in Illinois. |
| |||||||
| |||||||
1 | (v) In the case where film or radio programming | ||||||
2 | is provided by a taxpayer that is not a network or | ||||||
3 | station to another person for broadcasting in | ||||||
4 | exchange for a fee or other remuneration from that | ||||||
5 | person, the broadcasting service is received at | ||||||
6 | the location of the office of the customer from | ||||||
7 | which the services were ordered in the regular | ||||||
8 | course of the customer's trade or business. | ||||||
9 | Accordingly, in such a case the revenue derived by | ||||||
10 | the taxpayer that is included in the taxpayer's | ||||||
11 | Illinois numerator of the sales factor is the | ||||||
12 | revenue from such customers who receive the | ||||||
13 | broadcasting service in Illinois.
| ||||||
14 | (C) For taxable years ending before December 31, 2008, | ||||||
15 | sales, other than sales governed by paragraphs (B), (B-1), | ||||||
16 | and (B-2), are in
this State if:
| ||||||
17 | (i) The income-producing activity is performed in | ||||||
18 | this State; or
| ||||||
19 | (ii) The income-producing activity is performed | ||||||
20 | both within and
without this State and a greater | ||||||
21 | proportion of the income-producing
activity is | ||||||
22 | performed within this State than without this State, | ||||||
23 | based
on performance costs.
| ||||||
24 | (C-5) For taxable years ending on or after December 31, | ||||||
25 | 2008, sales, other than sales governed by paragraphs (B), | ||||||
26 | (B-1), (B-2), (B-5), and (B-7), are in this State if any of |
| |||||||
| |||||||
1 | the following criteria are met: | ||||||
2 | (i) Sales from the sale or lease of real property | ||||||
3 | are in this State if the property is located in this | ||||||
4 | State. | ||||||
5 | (ii) Sales from the lease or rental of tangible | ||||||
6 | personal property are in this State if the property is | ||||||
7 | located in this State during the rental period. Sales | ||||||
8 | from the lease or rental of tangible personal property | ||||||
9 | that is characteristically moving property, including, | ||||||
10 | but not limited to, motor vehicles, rolling stock, | ||||||
11 | aircraft, vessels, or mobile equipment are in this | ||||||
12 | State to the extent that the property is used in this | ||||||
13 | State. | ||||||
14 | (iii) In the case of interest, net gains (but not | ||||||
15 | less than zero) and other items of income from | ||||||
16 | intangible personal property, the sale is in this State | ||||||
17 | if: | ||||||
18 | (a) in the case of a taxpayer who is a dealer | ||||||
19 | in the item of intangible personal property within | ||||||
20 | the meaning of Section 475 of the Internal Revenue | ||||||
21 | Code, the income or gain is received from a | ||||||
22 | customer in this State. For purposes of this | ||||||
23 | subparagraph, a customer is in this State if the | ||||||
24 | customer is an individual, trust or estate who is a | ||||||
25 | resident of this State and, for all other | ||||||
26 | customers, if the customer's commercial domicile |
| |||||||
| |||||||
1 | is in this State. Unless the dealer has actual | ||||||
2 | knowledge of the residence or commercial domicile | ||||||
3 | of a customer during a taxable year, the customer | ||||||
4 | shall be deemed to be a customer in this State if | ||||||
5 | the billing address of the customer, as shown in | ||||||
6 | the records of the dealer, is in this State; or | ||||||
7 | (b) in all other cases, if the | ||||||
8 | income-producing activity of the taxpayer is | ||||||
9 | performed in this State or, if the | ||||||
10 | income-producing activity of the taxpayer is | ||||||
11 | performed both within and without this State, if a | ||||||
12 | greater proportion of the income-producing | ||||||
13 | activity of the taxpayer is performed within this | ||||||
14 | State than in any other state, based on performance | ||||||
15 | costs. | ||||||
16 | (iv) Sales of services are in this State if the | ||||||
17 | services are received in this State. For the purposes | ||||||
18 | of this section, gross receipts from the performance of | ||||||
19 | services provided to a corporation, partnership, or | ||||||
20 | trust may only be attributed to a state where that | ||||||
21 | corporation, partnership, or trust has a fixed place of | ||||||
22 | business. If the state where the services are received | ||||||
23 | is not readily determinable or is a state where the | ||||||
24 | corporation, partnership, or trust receiving the | ||||||
25 | service does not have a fixed place of business, the | ||||||
26 | services shall be deemed to be received at the location |
| |||||||
| |||||||
1 | of the office of the customer from which the services | ||||||
2 | were ordered in the regular course of the customer's | ||||||
3 | trade or business. If the ordering office cannot be | ||||||
4 | determined, the services shall be deemed to be received | ||||||
5 | at the office of the customer to which the services are | ||||||
6 | billed. If the taxpayer is not taxable in the state in | ||||||
7 | which the services are received, the sale must be | ||||||
8 | excluded from both the numerator and the denominator of | ||||||
9 | the sales factor. The Department shall adopt rules | ||||||
10 | prescribing where specific types of service are | ||||||
11 | received, including, but not limited to, publishing, | ||||||
12 | and utility service.
| ||||||
13 | (D) For taxable years ending on or after December 31, | ||||||
14 | 1995, the following
items of income shall not be included | ||||||
15 | in the numerator or denominator of the
sales factor: | ||||||
16 | dividends; amounts included under Section 78 of the | ||||||
17 | Internal
Revenue Code; and Subpart F income as defined in | ||||||
18 | Section 952 of the Internal
Revenue Code.
No inference | ||||||
19 | shall be drawn from the enactment of this paragraph (D) in
| ||||||
20 | construing this Section for taxable years ending before | ||||||
21 | December 31, 1995.
| ||||||
22 | (E) Paragraphs (B-1) and (B-2) shall apply to tax years | ||||||
23 | ending on or
after December 31, 1999, provided that a | ||||||
24 | taxpayer may elect to apply the
provisions of these | ||||||
25 | paragraphs to prior tax years. Such election shall be made
| ||||||
26 | in the form and manner prescribed by the Department, shall |
| |||||||
| |||||||
1 | be irrevocable, and
shall apply to all tax years; provided | ||||||
2 | that, if a taxpayer's Illinois income
tax liability for any | ||||||
3 | tax year, as assessed under Section 903 prior to January
1, | ||||||
4 | 1999, was computed in a manner contrary to the provisions | ||||||
5 | of paragraphs
(B-1) or (B-2), no refund shall be payable to | ||||||
6 | the taxpayer for that tax year to
the extent such refund is | ||||||
7 | the result of applying the provisions of paragraph
(B-1) or | ||||||
8 | (B-2) retroactively. In the case of a unitary business | ||||||
9 | group, such
election shall apply to all members of such | ||||||
10 | group for every tax year such group
is in existence, but | ||||||
11 | shall not apply to any taxpayer for any period during
which | ||||||
12 | that taxpayer is not a member of such group.
| ||||||
13 | (b) Insurance companies.
| ||||||
14 | (1) In general. Except as otherwise
provided by | ||||||
15 | paragraph (2), business income of an insurance company for | ||||||
16 | a
taxable year shall be apportioned to this State by | ||||||
17 | multiplying such
income by a fraction, the numerator of | ||||||
18 | which is the direct premiums
written for insurance upon | ||||||
19 | property or risk in this State, and the
denominator of | ||||||
20 | which is the direct premiums written for insurance upon
| ||||||
21 | property or risk everywhere. For purposes of this | ||||||
22 | subsection, the term
"direct premiums written" means the | ||||||
23 | total amount of direct premiums
written, assessments and | ||||||
24 | annuity considerations as reported for the
taxable year on | ||||||
25 | the annual statement filed by the company with the
Illinois | ||||||
26 | Director of Insurance in the form approved by the National
|
| |||||||
| |||||||
1 | Convention of Insurance Commissioners
or such other form as | ||||||
2 | may be
prescribed in lieu thereof.
| ||||||
3 | (2) Reinsurance. If the principal source of premiums | ||||||
4 | written by an
insurance company consists of premiums for | ||||||
5 | reinsurance accepted by it,
the business income of such | ||||||
6 | company shall be apportioned to this State
by multiplying | ||||||
7 | such income by a fraction, the numerator of which is the
| ||||||
8 | sum of (i) direct premiums written for insurance upon | ||||||
9 | property or risk
in this State, plus (ii) premiums written | ||||||
10 | for reinsurance accepted in
respect of property or risk in | ||||||
11 | this State, and the denominator of which
is the sum of | ||||||
12 | (iii) direct premiums written for insurance upon property
| ||||||
13 | or risk everywhere, plus (iv) premiums written for | ||||||
14 | reinsurance accepted
in respect of property or risk | ||||||
15 | everywhere. For purposes of this
paragraph, premiums | ||||||
16 | written for reinsurance accepted in respect of
property or | ||||||
17 | risk in this State, whether or not otherwise determinable,
| ||||||
18 | may, at the election of the company, be determined on the | ||||||
19 | basis of the
proportion which premiums written for | ||||||
20 | reinsurance accepted from
companies commercially domiciled | ||||||
21 | in Illinois bears to premiums written
for reinsurance | ||||||
22 | accepted from all sources, or, alternatively, in the
| ||||||
23 | proportion which the sum of the direct premiums written for | ||||||
24 | insurance
upon property or risk in this State by each | ||||||
25 | ceding company from which
reinsurance is accepted bears to | ||||||
26 | the sum of the total direct premiums
written by each such |
| |||||||
| |||||||
1 | ceding company for the taxable year. The election made by a | ||||||
2 | company under this paragraph for its first taxable year | ||||||
3 | ending on or after December 31, 2011, shall be binding for | ||||||
4 | that company for that taxable year and for all subsequent | ||||||
5 | taxable years, and may be altered only with the written | ||||||
6 | permission of the Department, which shall not be | ||||||
7 | unreasonably withheld.
| ||||||
8 | (c) Financial organizations.
| ||||||
9 | (1) In general. For taxable years ending before | ||||||
10 | December 31, 2008, business income of a financial
| ||||||
11 | organization shall be apportioned to this State by | ||||||
12 | multiplying such
income by a fraction, the numerator of | ||||||
13 | which is its business income from
sources within this | ||||||
14 | State, and the denominator of which is its business
income | ||||||
15 | from all sources. For the purposes of this subsection, the
| ||||||
16 | business income of a financial organization from sources | ||||||
17 | within this
State is the sum of the amounts referred to in | ||||||
18 | subparagraphs (A) through
(E) following, but excluding the | ||||||
19 | adjusted income of an international banking
facility as | ||||||
20 | determined in paragraph (2):
| ||||||
21 | (A) Fees, commissions or other compensation for | ||||||
22 | financial services
rendered within this State;
| ||||||
23 | (B) Gross profits from trading in stocks, bonds or | ||||||
24 | other securities
managed within this State;
| ||||||
25 | (C) Dividends, and interest from Illinois | ||||||
26 | customers, which are received
within this State;
|
| |||||||
| |||||||
1 | (D) Interest charged to customers at places of | ||||||
2 | business maintained
within this State for carrying | ||||||
3 | debit balances of margin accounts,
without deduction | ||||||
4 | of any costs incurred in carrying such accounts; and
| ||||||
5 | (E) Any other gross income resulting from the | ||||||
6 | operation as a
financial organization within this | ||||||
7 | State. In computing the amounts
referred to in | ||||||
8 | paragraphs (A) through (E) of this subsection, any | ||||||
9 | amount
received by a member of an affiliated group | ||||||
10 | (determined under Section
1504(a) of the Internal | ||||||
11 | Revenue Code but without reference to whether
any such | ||||||
12 | corporation is an "includible corporation" under | ||||||
13 | Section
1504(b) of the Internal Revenue Code) from | ||||||
14 | another member of such group
shall be included only to | ||||||
15 | the extent such amount exceeds expenses of the
| ||||||
16 | recipient directly related thereto.
| ||||||
17 | (2) International Banking Facility. For taxable years | ||||||
18 | ending before December 31, 2008:
| ||||||
19 | (A) Adjusted Income. The adjusted income of an | ||||||
20 | international banking
facility is its income reduced | ||||||
21 | by the amount of the floor amount.
| ||||||
22 | (B) Floor Amount. The floor amount shall be the | ||||||
23 | amount, if any,
determined
by multiplying the income of | ||||||
24 | the international banking facility by a fraction,
not | ||||||
25 | greater than one, which is determined as follows:
| ||||||
26 | (i) The numerator shall be:
|
| |||||||
| |||||||
1 | The average aggregate, determined on a | ||||||
2 | quarterly basis, of the
financial
organization's | ||||||
3 | loans to banks in foreign countries, to foreign | ||||||
4 | domiciled
borrowers (except where secured | ||||||
5 | primarily by real estate) and to foreign
| ||||||
6 | governments and other foreign official | ||||||
7 | institutions, as reported for its
branches, | ||||||
8 | agencies and offices within the state on its | ||||||
9 | "Consolidated Report
of Condition", Schedule A, | ||||||
10 | Lines 2.c., 5.b., and 7.a., which was filed with
| ||||||
11 | the Federal Deposit Insurance Corporation and | ||||||
12 | other regulatory authorities,
for the year 1980, | ||||||
13 | minus
| ||||||
14 | The average aggregate, determined on a | ||||||
15 | quarterly basis, of such loans
(other
than loans of | ||||||
16 | an international banking facility), as reported by | ||||||
17 | the financial
institution for its branches, | ||||||
18 | agencies and offices within the state, on
the | ||||||
19 | corresponding Schedule and lines of the | ||||||
20 | Consolidated Report of Condition
for the current | ||||||
21 | taxable year, provided, however, that in no case | ||||||
22 | shall the
amount determined in this clause (the | ||||||
23 | subtrahend) exceed the amount determined
in the | ||||||
24 | preceding clause (the minuend); and
| ||||||
25 | (ii) the denominator shall be the average | ||||||
26 | aggregate, determined on a
quarterly basis, of the |
| |||||||
| |||||||
1 | international banking facility's loans to banks in
| ||||||
2 | foreign countries, to foreign domiciled borrowers | ||||||
3 | (except where secured
primarily by real estate) | ||||||
4 | and to foreign governments and other foreign
| ||||||
5 | official institutions, which were recorded in its | ||||||
6 | financial accounts for
the current taxable year.
| ||||||
7 | (C) Change to Consolidated Report of Condition and | ||||||
8 | in Qualification.
In the event the Consolidated Report | ||||||
9 | of Condition which is filed with the
Federal Deposit | ||||||
10 | Insurance Corporation and other regulatory authorities | ||||||
11 | is
altered so that the information required for | ||||||
12 | determining the floor amount
is not found on Schedule | ||||||
13 | A, lines 2.c., 5.b. and 7.a., the financial
institution | ||||||
14 | shall notify the Department and the Department may, by
| ||||||
15 | regulations or otherwise, prescribe or authorize the | ||||||
16 | use of an alternative
source for such information. The | ||||||
17 | financial institution shall also notify
the Department | ||||||
18 | should its international banking facility fail to | ||||||
19 | qualify as
such, in whole or in part, or should there | ||||||
20 | be any amendment or change to
the Consolidated Report | ||||||
21 | of Condition, as originally filed, to the extent
such | ||||||
22 | amendment or change alters the information used in | ||||||
23 | determining the floor
amount.
| ||||||
24 | (3) For taxable years ending on or after December 31, | ||||||
25 | 2008, the business income of a financial organization shall | ||||||
26 | be apportioned to this State by multiplying such income by |
| |||||||
| |||||||
1 | a fraction, the numerator of which is its gross receipts | ||||||
2 | from sources in this State or otherwise attributable to | ||||||
3 | this State's marketplace and the denominator of which is | ||||||
4 | its gross receipts everywhere during the taxable year. | ||||||
5 | "Gross receipts" for purposes of this subparagraph (3) | ||||||
6 | means gross income, including net taxable gain on | ||||||
7 | disposition of assets, including securities and money | ||||||
8 | market instruments, when derived from transactions and | ||||||
9 | activities in the regular course of the financial | ||||||
10 | organization's trade or business. The following examples | ||||||
11 | are illustrative:
| ||||||
12 | (i) Receipts from the lease or rental of real or | ||||||
13 | tangible personal property are in this State if the | ||||||
14 | property is located in this State during the rental | ||||||
15 | period. Receipts from the lease or rental of tangible | ||||||
16 | personal property that is characteristically moving | ||||||
17 | property, including, but not limited to, motor | ||||||
18 | vehicles, rolling stock, aircraft, vessels, or mobile | ||||||
19 | equipment are from sources in this State to the extent | ||||||
20 | that the property is used in this State. | ||||||
21 | (ii) Interest income, commissions, fees, gains on | ||||||
22 | disposition, and other receipts from assets in the | ||||||
23 | nature of loans that are secured primarily by real | ||||||
24 | estate or tangible personal property are from sources | ||||||
25 | in this State if the security is located in this State. | ||||||
26 | (iii) Interest income, commissions, fees, gains on |
| |||||||
| |||||||
1 | disposition, and other receipts from consumer loans | ||||||
2 | that are not secured by real or tangible personal | ||||||
3 | property are from sources in this State if the debtor | ||||||
4 | is a resident of this State. | ||||||
5 | (iv) Interest income, commissions, fees, gains on | ||||||
6 | disposition, and other receipts from commercial loans | ||||||
7 | and installment obligations that are not secured by | ||||||
8 | real or tangible personal property are from sources in | ||||||
9 | this State if the proceeds of the loan are to be | ||||||
10 | applied in this State. If it cannot be determined where | ||||||
11 | the funds are to be applied, the income and receipts | ||||||
12 | are from sources in this State if the office of the | ||||||
13 | borrower from which the loan was negotiated in the | ||||||
14 | regular course of business is located in this State. If | ||||||
15 | the location of this office cannot be determined, the | ||||||
16 | income and receipts shall be excluded from the | ||||||
17 | numerator and denominator of the sales factor.
| ||||||
18 | (v) Interest income, fees, gains on disposition, | ||||||
19 | service charges, merchant discount income, and other | ||||||
20 | receipts from credit card receivables are from sources | ||||||
21 | in this State if the card charges are regularly billed | ||||||
22 | to a customer in this State. | ||||||
23 | (vi) Receipts from the performance of services, | ||||||
24 | including, but not limited to, fiduciary, advisory, | ||||||
25 | and brokerage services, are in this State if the | ||||||
26 | services are received in this State within the meaning |
| |||||||
| |||||||
1 | of subparagraph (a)(3)(C-5)(iv) of this Section. | ||||||
2 | (vii) Receipts from the issuance of travelers | ||||||
3 | checks and money orders are from sources in this State | ||||||
4 | if the checks and money orders are issued from a | ||||||
5 | location within this State. | ||||||
6 | (viii) Receipts from investment assets and | ||||||
7 | activities and trading assets and activities are | ||||||
8 | included in the receipts factor as follows: | ||||||
9 | (1) Interest, dividends, net gains (but not | ||||||
10 | less than zero) and other income from investment | ||||||
11 | assets and activities from trading assets and | ||||||
12 | activities shall be included in the receipts | ||||||
13 | factor. Investment assets and activities and | ||||||
14 | trading assets and activities include but are not | ||||||
15 | limited to: investment securities; trading account | ||||||
16 | assets; federal funds; securities purchased and | ||||||
17 | sold under agreements to resell or repurchase; | ||||||
18 | options; futures contracts; forward contracts; | ||||||
19 | notional principal contracts such as swaps; | ||||||
20 | equities; and foreign currency transactions. With | ||||||
21 | respect to the investment and trading assets and | ||||||
22 | activities described in subparagraphs (A) and (B) | ||||||
23 | of this paragraph, the receipts factor shall | ||||||
24 | include the amounts described in such | ||||||
25 | subparagraphs. | ||||||
26 | (A) The receipts factor shall include the |
| |||||||
| |||||||
1 | amount by which interest from federal funds | ||||||
2 | sold and securities purchased under resale | ||||||
3 | agreements exceeds interest expense on federal | ||||||
4 | funds purchased and securities sold under | ||||||
5 | repurchase agreements. | ||||||
6 | (B) The receipts factor shall include the | ||||||
7 | amount by which interest, dividends, gains and | ||||||
8 | other income from trading assets and | ||||||
9 | activities, including but not limited to | ||||||
10 | assets and activities in the matched book, in | ||||||
11 | the arbitrage book, and foreign currency | ||||||
12 | transactions, exceed amounts paid in lieu of | ||||||
13 | interest, amounts paid in lieu of dividends, | ||||||
14 | and losses from such assets and activities. | ||||||
15 | (2) The numerator of the receipts factor | ||||||
16 | includes interest, dividends, net gains (but not | ||||||
17 | less than zero), and other income from investment | ||||||
18 | assets and activities and from trading assets and | ||||||
19 | activities described in paragraph (1) of this | ||||||
20 | subsection that are attributable to this State. | ||||||
21 | (A) The amount of interest, dividends, net | ||||||
22 | gains (but not less than zero), and other | ||||||
23 | income from investment assets and activities | ||||||
24 | in the investment account to be attributed to | ||||||
25 | this State and included in the numerator is | ||||||
26 | determined by multiplying all such income from |
| |||||||
| |||||||
1 | such assets and activities by a fraction, the | ||||||
2 | numerator of which is the gross income from | ||||||
3 | such assets and activities which are properly | ||||||
4 | assigned to a fixed place of business of the | ||||||
5 | taxpayer within this State and the denominator | ||||||
6 | of which is the gross income from all such | ||||||
7 | assets and activities. | ||||||
8 | (B) The amount of interest from federal | ||||||
9 | funds sold and purchased and from securities | ||||||
10 | purchased under resale agreements and | ||||||
11 | securities sold under repurchase agreements | ||||||
12 | attributable to this State and included in the | ||||||
13 | numerator is determined by multiplying the | ||||||
14 | amount described in subparagraph (A) of | ||||||
15 | paragraph (1) of this subsection from such | ||||||
16 | funds and such securities by a fraction, the | ||||||
17 | numerator of which is the gross income from | ||||||
18 | such funds and such securities which are | ||||||
19 | properly assigned to a fixed place of business | ||||||
20 | of the taxpayer within this State and the | ||||||
21 | denominator of which is the gross income from | ||||||
22 | all such funds and such securities. | ||||||
23 | (C) The amount of interest, dividends, | ||||||
24 | gains, and other income from trading assets and | ||||||
25 | activities, including but not limited to | ||||||
26 | assets and activities in the matched book, in |
| |||||||
| |||||||
1 | the arbitrage book and foreign currency | ||||||
2 | transactions (but excluding amounts described | ||||||
3 | in subparagraphs (A) or (B) of this paragraph), | ||||||
4 | attributable to this State and included in the | ||||||
5 | numerator is determined by multiplying the | ||||||
6 | amount described in subparagraph (B) of | ||||||
7 | paragraph (1) of this subsection by a fraction, | ||||||
8 | the numerator of which is the gross income from | ||||||
9 | such trading assets and activities which are | ||||||
10 | properly assigned to a fixed place of business | ||||||
11 | of the taxpayer within this State and the | ||||||
12 | denominator of which is the gross income from | ||||||
13 | all such assets and activities. | ||||||
14 | (D) Properly assigned, for purposes of | ||||||
15 | this paragraph (2) of this subsection, means | ||||||
16 | the investment or trading asset or activity is | ||||||
17 | assigned to the fixed place of business with | ||||||
18 | which it has a preponderance of substantive | ||||||
19 | contacts. An investment or trading asset or | ||||||
20 | activity assigned by the taxpayer to a fixed | ||||||
21 | place of business without the State shall be | ||||||
22 | presumed to have been properly assigned if: | ||||||
23 | (i) the taxpayer has assigned, in the | ||||||
24 | regular course of its business, such asset | ||||||
25 | or activity on its records to a fixed place | ||||||
26 | of business consistent with federal or |
| |||||||
| |||||||
1 | state regulatory requirements; | ||||||
2 | (ii) such assignment on its records is | ||||||
3 | based upon substantive contacts of the | ||||||
4 | asset or activity to such fixed place of | ||||||
5 | business; and | ||||||
6 | (iii) the taxpayer uses such records | ||||||
7 | reflecting assignment of such assets or | ||||||
8 | activities for the filing of all state and | ||||||
9 | local tax returns for which an assignment | ||||||
10 | of such assets or activities to a fixed | ||||||
11 | place of business is required. | ||||||
12 | (E) The presumption of proper assignment | ||||||
13 | of an investment or trading asset or activity | ||||||
14 | provided in subparagraph (D) of paragraph (2) | ||||||
15 | of this subsection may be rebutted upon a | ||||||
16 | showing by the Department, supported by a | ||||||
17 | preponderance of the evidence, that the | ||||||
18 | preponderance of substantive contacts | ||||||
19 | regarding such asset or activity did not occur | ||||||
20 | at the fixed place of business to which it was | ||||||
21 | assigned on the taxpayer's records. If the | ||||||
22 | fixed place of business that has a | ||||||
23 | preponderance of substantive contacts cannot | ||||||
24 | be determined for an investment or trading | ||||||
25 | asset or activity to which the presumption in | ||||||
26 | subparagraph (D) of paragraph (2) of this |
| |||||||
| |||||||
1 | subsection does not apply or with respect to | ||||||
2 | which that presumption has been rebutted, that | ||||||
3 | asset or activity is properly assigned to the | ||||||
4 | state in which the taxpayer's commercial | ||||||
5 | domicile is located. For purposes of this | ||||||
6 | subparagraph (E), it shall be presumed, | ||||||
7 | subject to rebuttal, that taxpayer's | ||||||
8 | commercial domicile is in the state of the | ||||||
9 | United States or the District of Columbia to | ||||||
10 | which the greatest number of employees are | ||||||
11 | regularly connected with the management of the | ||||||
12 | investment or trading income or out of which | ||||||
13 | they are working, irrespective of where the | ||||||
14 | services of such employees are performed, as of | ||||||
15 | the last day of the taxable year.
| ||||||
16 | (4) (Blank). | ||||||
17 | (5) (Blank). | ||||||
18 | (c-1) Federally-regulated exchanges. For taxable years | ||||||
19 | ending on or after December 31, 2012, business income of a | ||||||
20 | federally-regulated exchange shall, at the option of the | ||||||
21 | federally-regulated exchange, be apportioned to this State by | ||||||
22 | multiplying such income by a fraction, the numerator of which | ||||||
23 | is its business income from sources within this State, and the | ||||||
24 | denominator of which is its business income from all sources. | ||||||
25 | For purposes of this subsection, the business income within | ||||||
26 | this State of a federally-regulated exchange is the sum of the |
| |||||||
| |||||||
1 | following: | ||||||
2 | (1) Receipts attributable to transactions executed on | ||||||
3 | a physical trading floor if that physical trading floor is | ||||||
4 | located in this State. | ||||||
5 | (2) Receipts attributable to all other matching, | ||||||
6 | execution, or clearing transactions, including without | ||||||
7 | limitation receipts from the provision of matching, | ||||||
8 | execution, or clearing services to another entity, | ||||||
9 | multiplied by (i) for taxable years ending on or after | ||||||
10 | December 31, 2012 but before December 31, 2013, 63.77%; and | ||||||
11 | (ii) for taxable years ending on or after December 31, | ||||||
12 | 2013, 27.54%. | ||||||
13 | (3) Receipts from all other sales of services if the | ||||||
14 | services are received in this State. For the purposes of | ||||||
15 | this subsection, gross receipts from the performance of | ||||||
16 | services provided to a corporation, partnership, or trust | ||||||
17 | may only be attributed to a state where that corporation, | ||||||
18 | partnership, or trust has a fixed place of business. If the | ||||||
19 | state where the services are received is not readily | ||||||
20 | determinable or is a state where the corporation, | ||||||
21 | partnership, or trust receiving the service does not have a | ||||||
22 | fixed place of business, the services shall be deemed to be | ||||||
23 | received at the location of the office of the customer from | ||||||
24 | which the services were ordered in the regular course of | ||||||
25 | the customer's trade or business. If the ordering office | ||||||
26 | cannot be determined, the services shall be deemed to be |
| |||||||
| |||||||
1 | received at the office of the customer to whom the services | ||||||
2 | are billed. | ||||||
3 | (4) All other receipts not governed by subparagraphs | ||||||
4 | (1), (2), or (3) of this subsection (c-1), to the extent | ||||||
5 | the receipts would be characterized as "sales in this | ||||||
6 | State" under item (3) of subsection (a) of this Section. | ||||||
7 | "Federally-regulated exchange" means (i) a "registered | ||||||
8 | entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), | ||||||
9 | or (C), (ii) an "exchange" or "clearing agency" within the | ||||||
10 | meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such | ||||||
11 | entities regulated under any successor regulatory structure to | ||||||
12 | the foregoing, and (iv) all taxpayers who are members of the | ||||||
13 | same unitary business group as a federally-regulated exchange, | ||||||
14 | determined without regard to the prohibition in Section | ||||||
15 | 1501(a)(27) of this Act against including in a unitary business | ||||||
16 | group taxpayers who are ordinarily required to apportion | ||||||
17 | business income under different subsections of this Section; | ||||||
18 | provided that this subparagraph (iv) shall apply only if 50% or | ||||||
19 | more of the business receipts of the unitary business group | ||||||
20 | determined by application of this subparagraph (iv) for the | ||||||
21 | taxable year are attributable to the matching, execution, or | ||||||
22 | clearing of transactions conducted by an entity described in | ||||||
23 | subparagraph (i), (ii), or (iii) of this paragraph. | ||||||
24 | In no event shall the Illinois apportionment percentage | ||||||
25 | computed in accordance with this subsection (c-1) for any | ||||||
26 | taxpayer for any tax year be less than the Illinois |
| |||||||
| |||||||
1 | apportionment percentage computed under this subsection (c-1) | ||||||
2 | for that taxpayer for the first full tax year ending on or | ||||||
3 | after December 31, 2013 for which this subsection (c-1) applied | ||||||
4 | to the taxpayer. | ||||||
5 | (d) Transportation services. For taxable years ending | ||||||
6 | before December 31, 2008, business income derived from | ||||||
7 | furnishing
transportation services shall be apportioned to | ||||||
8 | this State in accordance
with paragraphs (1) and (2):
| ||||||
9 | (1) Such business income (other than that derived from
| ||||||
10 | transportation by pipeline) shall be apportioned to this | ||||||
11 | State by
multiplying such income by a fraction, the | ||||||
12 | numerator of which is the
revenue miles of the person in | ||||||
13 | this State, and the denominator of which
is the revenue | ||||||
14 | miles of the person everywhere. For purposes of this
| ||||||
15 | paragraph, a revenue mile is the transportation of 1 | ||||||
16 | passenger or 1 net
ton of freight the distance of 1 mile | ||||||
17 | for a consideration. Where a
person is engaged in the | ||||||
18 | transportation of both passengers and freight,
the | ||||||
19 | fraction above referred to shall be determined by means of | ||||||
20 | an
average of the passenger revenue mile fraction and the | ||||||
21 | freight revenue
mile fraction, weighted to reflect the | ||||||
22 | person's
| ||||||
23 | (A) relative railway operating income from total | ||||||
24 | passenger and total
freight service, as reported to the | ||||||
25 | Interstate Commerce Commission, in
the case of | ||||||
26 | transportation by railroad, and
|
| |||||||
| |||||||
1 | (B) relative gross receipts from passenger and | ||||||
2 | freight
transportation, in case of transportation | ||||||
3 | other than by railroad.
| ||||||
4 | (2) Such business income derived from transportation | ||||||
5 | by pipeline
shall be apportioned to this State by | ||||||
6 | multiplying such income by a
fraction, the numerator of | ||||||
7 | which is the revenue miles of the person in
this State, and | ||||||
8 | the denominator of which is the revenue miles of the
person | ||||||
9 | everywhere. For the purposes of this paragraph, a revenue | ||||||
10 | mile is
the transportation by pipeline of 1 barrel of oil, | ||||||
11 | 1,000 cubic feet of
gas, or of any specified quantity of | ||||||
12 | any other substance, the distance
of 1 mile for a | ||||||
13 | consideration.
| ||||||
14 | (3) For taxable years ending on or after December 31, | ||||||
15 | 2008, business income derived from providing | ||||||
16 | transportation services other than airline services shall | ||||||
17 | be apportioned to this State by using a fraction, (a) the | ||||||
18 | numerator of which shall be (i) all receipts from any | ||||||
19 | movement or shipment of people, goods, mail, oil, gas, or | ||||||
20 | any other substance (other than by airline) that both | ||||||
21 | originates and terminates in this State, plus (ii) that | ||||||
22 | portion of the person's gross receipts from movements or | ||||||
23 | shipments of people, goods, mail, oil, gas, or any other | ||||||
24 | substance (other than by airline) that originates in one | ||||||
25 | state or jurisdiction and terminates in another state or | ||||||
26 | jurisdiction, that is determined by the ratio that the |
| |||||||
| |||||||
1 | miles traveled in this State bears to total miles | ||||||
2 | everywhere and (b) the denominator of which shall be all | ||||||
3 | revenue derived from the movement or shipment of people, | ||||||
4 | goods, mail, oil, gas, or any other substance (other than | ||||||
5 | by airline). Where a taxpayer is engaged in the | ||||||
6 | transportation of both passengers and freight, the | ||||||
7 | fraction above referred to shall first be determined | ||||||
8 | separately for passenger miles and freight miles. Then an | ||||||
9 | average of the passenger miles fraction and the freight | ||||||
10 | miles fraction shall be weighted to reflect the taxpayer's: | ||||||
11 | (A) relative railway operating income from total | ||||||
12 | passenger and total freight service, as reported to the | ||||||
13 | Surface Transportation Board, in the case of | ||||||
14 | transportation by railroad; and
| ||||||
15 | (B) relative gross receipts from passenger and | ||||||
16 | freight transportation, in case of transportation | ||||||
17 | other than by railroad.
| ||||||
18 | (4) For taxable years ending on or after December 31, | ||||||
19 | 2008, business income derived from furnishing airline
| ||||||
20 | transportation services shall be apportioned to this State | ||||||
21 | by
multiplying such income by a fraction, the numerator of | ||||||
22 | which is the
revenue miles of the person in this State, and | ||||||
23 | the denominator of which
is the revenue miles of the person | ||||||
24 | everywhere. For purposes of this
paragraph, a revenue mile | ||||||
25 | is the transportation of one passenger or one net
ton of | ||||||
26 | freight the distance of one mile for a consideration. If a
|
| |||||||
| |||||||
1 | person is engaged in the transportation of both passengers | ||||||
2 | and freight,
the fraction above referred to shall be | ||||||
3 | determined by means of an
average of the passenger revenue | ||||||
4 | mile fraction and the freight revenue
mile fraction, | ||||||
5 | weighted to reflect the person's relative gross receipts | ||||||
6 | from passenger and freight
airline transportation.
| ||||||
7 | (e) Combined apportionment. Where 2 or more persons are | ||||||
8 | engaged in
a unitary business as described in subsection | ||||||
9 | (a)(27) of
Section 1501,
a part of which is conducted in this | ||||||
10 | State by one or more members of the
group, the business income | ||||||
11 | attributable to this State by any such member
or members shall | ||||||
12 | be apportioned by means of the combined apportionment method.
| ||||||
13 | (f) Alternative allocation. If the allocation and | ||||||
14 | apportionment
provisions of subsections (a) through (e) and of | ||||||
15 | subsection (h) do not
fairly represent the
extent of a person's | ||||||
16 | business activity in this State, the person may
petition for, | ||||||
17 | or the Director may, without a petition, permit or require, in | ||||||
18 | respect of all or any part
of the person's business activity, | ||||||
19 | if reasonable:
| ||||||
20 | (1) Separate accounting;
| ||||||
21 | (2) The exclusion of any one or more factors;
| ||||||
22 | (3) The inclusion of one or more additional factors | ||||||
23 | which will
fairly represent the person's business | ||||||
24 | activities in this State; or
| ||||||
25 | (4) The employment of any other method to effectuate an | ||||||
26 | equitable
allocation and apportionment of the person's |
| |||||||
| |||||||
1 | business income.
| ||||||
2 | (g) Cross reference. For allocation of business income by | ||||||
3 | residents,
see Section 301(a).
| ||||||
4 | (h) For tax years ending on or after December 31, 1998, the | ||||||
5 | apportionment
factor of persons who apportion their business | ||||||
6 | income to this State under
subsection (a) shall be equal to:
| ||||||
7 | (1) for tax years ending on or after December 31, 1998 | ||||||
8 | and before December
31, 1999, 16 2/3% of the property | ||||||
9 | factor plus 16 2/3% of the payroll factor
plus
66 2/3% of | ||||||
10 | the sales factor;
| ||||||
11 | (2) for tax years ending on or after December 31, 1999 | ||||||
12 | and before December
31,
2000, 8 1/3% of the property factor | ||||||
13 | plus 8 1/3% of the payroll factor plus 83
1/3%
of the sales | ||||||
14 | factor;
| ||||||
15 | (3) for tax years ending on or after December 31, 2000, | ||||||
16 | the sales factor.
| ||||||
17 | If, in any tax year ending on or after December 31, 1998 and | ||||||
18 | before December
31, 2000, the denominator of the payroll, | ||||||
19 | property, or sales factor is zero,
the apportionment
factor | ||||||
20 | computed in paragraph (1) or (2) of this subsection for that | ||||||
21 | year shall
be divided by an amount equal to 100% minus the | ||||||
22 | percentage weight given to each
factor whose denominator is | ||||||
23 | equal to zero.
| ||||||
24 | (Source: P.A. 96-763, eff. 8-25-09; 97-507, eff. 8-23-11.)
| ||||||
25 | (35 ILCS 5/804) (from Ch. 120, par. 8-804)
|
| |||||||
| |||||||
1 | Sec. 804. Failure to Pay Estimated Tax.
| ||||||
2 | (a) In general. In case of any underpayment of estimated | ||||||
3 | tax by a
taxpayer, except as provided in subsection (d) or (e), | ||||||
4 | the taxpayer shall
be liable to a penalty in an amount | ||||||
5 | determined at the rate prescribed by
Section 3-3 of the Uniform | ||||||
6 | Penalty and Interest Act upon the amount of the
underpayment | ||||||
7 | (determined under subsection (b)) for each required | ||||||
8 | installment.
| ||||||
9 | (b) Amount of underpayment. For purposes of subsection (a), | ||||||
10 | the
amount of the underpayment shall be the excess of:
| ||||||
11 | (1) the amount of the installment which would be | ||||||
12 | required to be paid
under subsection (c), over
| ||||||
13 | (2) the amount, if any, of the installment paid on or | ||||||
14 | before the
last date prescribed for payment.
| ||||||
15 | (c) Amount of Required Installments.
| ||||||
16 | (1) Amount.
| ||||||
17 | (A) In General. Except as provided in paragraphs | ||||||
18 | paragraph (2) and (3) , the amount of any
required | ||||||
19 | installment shall be 25% of the required annual | ||||||
20 | payment.
| ||||||
21 | (B) Required Annual Payment. For purposes of | ||||||
22 | subparagraph (A),
the term "required annual payment" | ||||||
23 | means the lesser of :
| ||||||
24 | (i) 90% of the tax shown on the return for the | ||||||
25 | taxable year, or
if no return is filed, 90% of the | ||||||
26 | tax for such year ; ,
|
| |||||||
| |||||||
1 | (ii) for installments due prior to February 1, | ||||||
2 | 2011, and after January 31, 2012, 100% of the tax | ||||||
3 | shown on the return of the taxpayer for the
| ||||||
4 | preceding taxable year if a return showing a | ||||||
5 | liability for tax was filed by
the taxpayer for the | ||||||
6 | preceding taxable year and such preceding year was | ||||||
7 | a
taxable year of 12 months; or
| ||||||
8 | (iii) for installments due after January 31, | ||||||
9 | 2011, and prior to February 1, 2012, 150% of the | ||||||
10 | tax shown on the return of the taxpayer for the | ||||||
11 | preceding taxable year if a return showing a | ||||||
12 | liability for tax was filed by the taxpayer for the | ||||||
13 | preceding taxable year and such preceding year was | ||||||
14 | a taxable year of 12 months.
| ||||||
15 | (2) Lower Required Installment where Annualized Income | ||||||
16 | Installment is Less
Than Amount Determined Under Paragraph | ||||||
17 | (1).
| ||||||
18 | (A) In General. In the case of any required | ||||||
19 | installment if a taxpayer
establishes that the | ||||||
20 | annualized income installment is less than the amount
| ||||||
21 | determined under paragraph (1),
| ||||||
22 | (i) the amount of such required installment | ||||||
23 | shall be the annualized
income installment, and
| ||||||
24 | (ii) any reduction in a required installment | ||||||
25 | resulting from the
application of this | ||||||
26 | subparagraph shall be recaptured by increasing the
|
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | amount of the next required installment determined | |||||||||||||||||||||||||
2 | under paragraph (1) by
the amount of such | |||||||||||||||||||||||||
3 | reduction, and by increasing subsequent required
| |||||||||||||||||||||||||
4 | installments to the extent that the reduction has | |||||||||||||||||||||||||
5 | not previously been
recaptured under this clause.
| |||||||||||||||||||||||||
6 | (B) Determination of Annualized Income | |||||||||||||||||||||||||
7 | Installment. In the case of
any required installment, | |||||||||||||||||||||||||
8 | the annualized income installment is the
excess, if | |||||||||||||||||||||||||
9 | any, of :
| |||||||||||||||||||||||||
10 | (i) an amount equal to the applicable | |||||||||||||||||||||||||
11 | percentage of the tax for the
taxable year computed | |||||||||||||||||||||||||
12 | by placing on an annualized basis the net income | |||||||||||||||||||||||||
13 | for
months in the taxable year ending before the | |||||||||||||||||||||||||
14 | due date for the installment, over
| |||||||||||||||||||||||||
15 | (ii) the aggregate amount of any prior | |||||||||||||||||||||||||
16 | required installments for
the taxable year.
| |||||||||||||||||||||||||
17 | (C) Applicable Percentage.
| |||||||||||||||||||||||||
| ||||||||||||||||||||||||||
24 | (D) Annualized Net Income; Individuals. For | |||||||||||||||||||||||||
25 | individuals, net
income shall be placed on an | |||||||||||||||||||||||||
26 | annualized basis by:
|
| |||||||
| |||||||
1 | (i) multiplying by 12, or in the case of a | ||||||
2 | taxable year of
less than 12 months, by the number | ||||||
3 | of months in the taxable year, the
net income | ||||||
4 | computed without regard to the standard exemption | ||||||
5 | for the months
in the taxable
year ending before | ||||||
6 | the month in which the installment is required to | ||||||
7 | be paid;
| ||||||
8 | (ii) dividing the resulting amount by the | ||||||
9 | number of months in the
taxable year ending before | ||||||
10 | the month in which such installment date falls; and
| ||||||
11 | (iii) deducting from such amount the standard | ||||||
12 | exemption allowable for
the taxable year, such | ||||||
13 | standard exemption being determined as of the last
| ||||||
14 | date prescribed for payment of the installment.
| ||||||
15 | (E) Annualized Net Income; Corporations. For | ||||||
16 | corporations,
net income shall be placed on an | ||||||
17 | annualized basis by multiplying
by 12 the taxable | ||||||
18 | income
| ||||||
19 | (i) for the first 3 months of the taxable year, | ||||||
20 | in the case of the
installment required to be paid | ||||||
21 | in the 4th month,
| ||||||
22 | (ii) for the first 3 months or for the first 5 | ||||||
23 | months of the taxable
year, in the case of the | ||||||
24 | installment required to be paid in the 6th month,
| ||||||
25 | (iii) for the first 6 months or for the first 8 | ||||||
26 | months of the taxable
year, in the case of the |
| |||||||
| |||||||
1 | installment required to be paid in the 9th month, | ||||||
2 | and
| ||||||
3 | (iv) for the first 9 months or for the first 11 | ||||||
4 | months of the taxable
year, in the case of the | ||||||
5 | installment required to be paid in the 12th month
| ||||||
6 | of the taxable year,
| ||||||
7 | then dividing the resulting amount by the number of | ||||||
8 | months in the taxable
year (3, 5, 6, 8, 9, or 11 as the | ||||||
9 | case may be).
| ||||||
10 | (3) Notwithstanding any other provision of this | ||||||
11 | subsection (c), in the case of a federally-regulated | ||||||
12 | exchange that elects to apportion its income under Section | ||||||
13 | 304(c-1) of this Act, the amount of each required | ||||||
14 | installment due prior to June 30 of the first taxable year | ||||||
15 | to which the election applies shall be 25% of the tax that | ||||||
16 | would have been shown on the return for that taxable year | ||||||
17 | if the taxpayer had not made such election. | ||||||
18 | (d) Exceptions. Notwithstanding the provisions of the | ||||||
19 | preceding
subsections, the penalty imposed by subsection (a) | ||||||
20 | shall not
be imposed if the taxpayer was not required to file | ||||||
21 | an Illinois income
tax return for the preceding taxable year, | ||||||
22 | or, for individuals, if the
taxpayer had no tax liability for | ||||||
23 | the preceding taxable year and such year
was a taxable year of | ||||||
24 | 12 months.
The penalty imposed by subsection (a) shall
also not | ||||||
25 | be imposed on any underpayments of estimated tax due before the
| ||||||
26 | effective date of this amendatory Act of 1998 which |
| |||||||
| |||||||
1 | underpayments are solely
attributable to the change in | ||||||
2 | apportionment from subsection (a) to subsection
(h) of Section | ||||||
3 | 304. The provisions of this amendatory Act of 1998 apply to tax
| ||||||
4 | years ending on or after December 31, 1998.
| ||||||
5 | (e) The penalty imposed for underpayment of estimated tax | ||||||
6 | by subsection
(a) of this Section shall not be imposed to the | ||||||
7 | extent that the Director
or his or her designate determines, | ||||||
8 | pursuant to Section 3-8 of the Uniform Penalty
and Interest Act | ||||||
9 | that the penalty should not be imposed.
| ||||||
10 | (f) Definition of tax. For purposes of subsections (b) and | ||||||
11 | (c),
the term "tax" means the excess of the tax imposed under | ||||||
12 | Article 2 of
this Act, over the amounts credited against such | ||||||
13 | tax under Sections
601(b) (3) and (4).
| ||||||
14 | (g) Application of Section in case of tax withheld under | ||||||
15 | Article 7.
For purposes of applying this Section:
| ||||||
16 | (1) tax
withheld from compensation for the taxable year | ||||||
17 | shall be deemed a payment
of estimated tax, and an equal | ||||||
18 | part of such amount shall be deemed paid
on each | ||||||
19 | installment date for such taxable year, unless the taxpayer
| ||||||
20 | establishes the dates on which all amounts were actually | ||||||
21 | withheld, in
which case the amounts so withheld shall be | ||||||
22 | deemed payments of estimated
tax on the dates on which such | ||||||
23 | amounts were actually withheld;
| ||||||
24 | (2) amounts timely paid by a partnership, Subchapter S | ||||||
25 | corporation, or trust on behalf of a partner, shareholder, | ||||||
26 | or beneficiary pursuant to subsection (f) of Section 502 or |
| |||||||
| |||||||
1 | Section 709.5 and claimed as a payment of estimated tax | ||||||
2 | shall be deemed a payment of estimated tax made on the last | ||||||
3 | day of the taxable year of the partnership, Subchapter S | ||||||
4 | corporation, or trust for which the income from the | ||||||
5 | withholding is made was computed; and | ||||||
6 | (3) all other amounts pursuant to Article 7 shall be | ||||||
7 | deemed a payment of estimated tax on the date the payment | ||||||
8 | is made to the taxpayer of the amount from which the tax is | ||||||
9 | withheld.
| ||||||
10 | (g-5) Amounts withheld under the State Salary and Annuity | ||||||
11 | Withholding
Act. An individual who has amounts withheld under | ||||||
12 | paragraph (10) of Section 4
of the State Salary and Annuity | ||||||
13 | Withholding Act may elect to have those amounts
treated as | ||||||
14 | payments of estimated tax made on the dates on which those | ||||||
15 | amounts
are actually withheld.
| ||||||
16 | (i) Short taxable year. The application of this Section to
| ||||||
17 | taxable years of less than 12 months shall be in accordance | ||||||
18 | with
regulations prescribed by the Department.
| ||||||
19 | The changes in this Section made by Public Act 84-127 shall | ||||||
20 | apply to
taxable years ending on or after January 1, 1986.
| ||||||
21 | (Source: P.A. 96-1496, eff. 1-13-11; 97-507, eff. 8-23-11; | ||||||
22 | revised 11-18-11.)
| ||||||
23 | (35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
| ||||||
24 | Sec. 1501. Definitions.
| ||||||
25 | (a) In general. When used in this Act, where not
otherwise |
| |||||||
| |||||||
1 | distinctly expressed or manifestly incompatible with the | ||||||
2 | intent
thereof:
| ||||||
3 | (1) Business income. The term "business income" means | ||||||
4 | all income that may be treated as apportionable business | ||||||
5 | income under the Constitution of the United States. | ||||||
6 | Business income is net of the deductions allocable thereto. | ||||||
7 | Such term does not include compensation
or the deductions | ||||||
8 | allocable thereto.
For each taxable year beginning on or | ||||||
9 | after January 1, 2003, a taxpayer may
elect to treat all | ||||||
10 | income other than compensation as business income. This
| ||||||
11 | election shall be made in accordance with rules adopted by | ||||||
12 | the Department and,
once made, shall be irrevocable.
| ||||||
13 | (1.5) Captive real estate investment trust:
| ||||||
14 | (A) The term "captive real estate investment | ||||||
15 | trust" means a corporation, trust, or association:
| ||||||
16 | (i) that is considered a real estate | ||||||
17 | investment trust for the taxable year under | ||||||
18 | Section 856 of the Internal Revenue Code;
| ||||||
19 | (ii) the certificates of beneficial interest | ||||||
20 | or shares of which are not regularly traded on an | ||||||
21 | established securities market; and | ||||||
22 | (iii) of which more than 50% of the voting | ||||||
23 | power or value of the beneficial interest or | ||||||
24 | shares, at any time during the last half of the | ||||||
25 | taxable year, is owned or controlled, directly, | ||||||
26 | indirectly, or constructively, by a single |
| |||||||
| |||||||
1 | corporation. | ||||||
2 | (B) The term "captive real estate investment | ||||||
3 | trust" does not include: | ||||||
4 | (i) a real estate investment trust of which | ||||||
5 | more than 50% of the voting power or value of the | ||||||
6 | beneficial interest or shares is owned or | ||||||
7 | controlled, directly, indirectly, or | ||||||
8 | constructively, by: | ||||||
9 | (a) a real estate investment trust, other | ||||||
10 | than a captive real estate investment trust; | ||||||
11 | (b) a person who is exempt from taxation | ||||||
12 | under Section 501 of the Internal Revenue Code, | ||||||
13 | and who is not required to treat income | ||||||
14 | received from the real estate investment trust | ||||||
15 | as unrelated business taxable income under | ||||||
16 | Section 512 of the Internal Revenue Code; | ||||||
17 | (c) a listed Australian property trust, if | ||||||
18 | no more than 50% of the voting power or value | ||||||
19 | of the beneficial interest or shares of that | ||||||
20 | trust, at any time during the last half of the | ||||||
21 | taxable year, is owned or controlled, directly | ||||||
22 | or indirectly, by a single person; | ||||||
23 | (d) an entity organized as a trust, | ||||||
24 | provided a listed Australian property trust | ||||||
25 | described in subparagraph (c) owns or | ||||||
26 | controls, directly or indirectly, or |
| |||||||
| |||||||
1 | constructively, 75% or more of the voting power | ||||||
2 | or value of the beneficial interests or shares | ||||||
3 | of such entity; or | ||||||
4 | (e) an entity that is organized outside of | ||||||
5 | the laws of the United States and that | ||||||
6 | satisfies all of the following criteria: | ||||||
7 | (1) at least 75% of the entity's total | ||||||
8 | asset value at the close of its taxable | ||||||
9 | year is represented by real estate assets | ||||||
10 | (as defined in Section 856(c)(5)(B) of the | ||||||
11 | Internal Revenue Code, thereby including | ||||||
12 | shares or certificates of beneficial | ||||||
13 | interest in any real estate investment | ||||||
14 | trust), cash and cash equivalents, and | ||||||
15 | U.S. Government securities; | ||||||
16 | (2) the entity is not subject to tax on | ||||||
17 | amounts that are distributed to its | ||||||
18 | beneficial owners or is exempt from | ||||||
19 | entity-level taxation; | ||||||
20 | (3) the entity distributes at least | ||||||
21 | 85% of its taxable income (as computed in | ||||||
22 | the jurisdiction in which it is organized) | ||||||
23 | to the holders of its shares or | ||||||
24 | certificates of beneficial interest on an | ||||||
25 | annual basis; | ||||||
26 | (4) either (i) the shares or |
| |||||||
| |||||||
1 | beneficial interests of the entity are | ||||||
2 | regularly traded on an established | ||||||
3 | securities market or (ii) not more than 10% | ||||||
4 | of the voting power or value in the entity | ||||||
5 | is held, directly, indirectly, or | ||||||
6 | constructively, by a single entity or | ||||||
7 | individual; and | ||||||
8 | (5) the entity is organized in a | ||||||
9 | country that has entered into a tax treaty | ||||||
10 | with the United States; or | ||||||
11 | (ii) during its first taxable year for which it | ||||||
12 | elects to be treated as a real estate investment | ||||||
13 | trust under Section 856(c)(1) of the Internal | ||||||
14 | Revenue Code, a real estate investment trust the | ||||||
15 | certificates of beneficial interest or shares of | ||||||
16 | which are not regularly traded on an established | ||||||
17 | securities market, but only if the certificates of | ||||||
18 | beneficial interest or shares of the real estate | ||||||
19 | investment trust are regularly traded on an | ||||||
20 | established securities market prior to the earlier | ||||||
21 | of the due date (including extensions) for filing | ||||||
22 | its return under this Act for that first taxable | ||||||
23 | year or the date it actually files that return. | ||||||
24 | (C) For the purposes of this subsection (1.5), the | ||||||
25 | constructive ownership rules prescribed under Section | ||||||
26 | 318(a) of the Internal Revenue Code, as modified by |
| |||||||
| |||||||
1 | Section 856(d)(5) of the Internal Revenue Code, apply | ||||||
2 | in determining the ownership of stock, assets, or net | ||||||
3 | profits of any person.
| ||||||
4 | (2) Commercial domicile. The term "commercial | ||||||
5 | domicile" means the
principal
place from which the trade or | ||||||
6 | business of the taxpayer is directed or managed.
| ||||||
7 | (3) Compensation. The term "compensation" means wages, | ||||||
8 | salaries,
commissions
and any other form of remuneration | ||||||
9 | paid to employees for personal services.
| ||||||
10 | (4) Corporation. The term "corporation" includes | ||||||
11 | associations, joint-stock
companies, insurance companies | ||||||
12 | and cooperatives. Any entity, including a
limited | ||||||
13 | liability company formed under the Illinois Limited | ||||||
14 | Liability Company
Act, shall be treated as a corporation if | ||||||
15 | it is so classified for federal
income tax purposes.
| ||||||
16 | (5) Department. The term "Department" means the | ||||||
17 | Department of Revenue of
this State.
| ||||||
18 | (6) Director. The term "Director" means the Director of | ||||||
19 | Revenue of this
State.
| ||||||
20 | (7) Fiduciary. The term "fiduciary" means a guardian, | ||||||
21 | trustee, executor,
administrator, receiver, or any person | ||||||
22 | acting in any fiduciary capacity for any
person.
| ||||||
23 | (8) Financial organization.
| ||||||
24 | (A) The term "financial organization" means
any
| ||||||
25 | bank, bank holding company, trust company, savings | ||||||
26 | bank, industrial bank,
land bank, safe deposit |
| |||||||
| |||||||
1 | company, private banker, savings and loan association,
| ||||||
2 | building and loan association, credit union, currency | ||||||
3 | exchange, cooperative
bank, small loan company, sales | ||||||
4 | finance company, investment company, or any
person | ||||||
5 | which is owned by a bank or bank holding company. For | ||||||
6 | the purpose of
this Section a "person" will include | ||||||
7 | only those persons which a bank holding
company may | ||||||
8 | acquire and hold an interest in, directly or | ||||||
9 | indirectly, under the
provisions of the Bank Holding | ||||||
10 | Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | ||||||
11 | where interests in any person must be disposed of | ||||||
12 | within certain
required time limits under the Bank | ||||||
13 | Holding Company Act of 1956.
| ||||||
14 | (B) For purposes of subparagraph (A) of this | ||||||
15 | paragraph, the term
"bank" includes (i) any entity that | ||||||
16 | is regulated by the Comptroller of the
Currency under | ||||||
17 | the National Bank Act, or by the Federal Reserve Board, | ||||||
18 | or by
the
Federal Deposit Insurance Corporation and | ||||||
19 | (ii) any federally or State chartered
bank
operating as | ||||||
20 | a credit card bank.
| ||||||
21 | (C) For purposes of subparagraph (A) of this | ||||||
22 | paragraph, the term
"sales finance company" has the | ||||||
23 | meaning provided in the following item (i) or
(ii):
| ||||||
24 | (i) A person primarily engaged in one or more | ||||||
25 | of the following
businesses: the business of | ||||||
26 | purchasing customer receivables, the business
of |
| |||||||
| |||||||
1 | making loans upon the security of customer | ||||||
2 | receivables, the
business of making loans for the | ||||||
3 | express purpose of funding purchases of
tangible | ||||||
4 | personal property or services by the borrower, or | ||||||
5 | the business of
finance leasing. For purposes of | ||||||
6 | this item (i), "customer receivable"
means:
| ||||||
7 | (a) a retail installment contract or | ||||||
8 | retail charge agreement within
the
meaning
of | ||||||
9 | the Sales Finance Agency Act, the Retail | ||||||
10 | Installment Sales Act, or the
Motor Vehicle | ||||||
11 | Retail Installment Sales Act;
| ||||||
12 | (b) an installment, charge, credit, or | ||||||
13 | similar contract or agreement
arising from
the | ||||||
14 | sale of tangible personal property or services | ||||||
15 | in a transaction involving
a deferred payment | ||||||
16 | price payable in one or more installments | ||||||
17 | subsequent
to the sale; or
| ||||||
18 | (c) the outstanding balance of a contract | ||||||
19 | or agreement described in
provisions
(a) or (b) | ||||||
20 | of this item (i).
| ||||||
21 | A customer receivable need not provide for | ||||||
22 | payment of interest on
deferred
payments. A sales | ||||||
23 | finance company may purchase a customer receivable | ||||||
24 | from, or
make a loan secured by a customer | ||||||
25 | receivable to, the seller in the original
| ||||||
26 | transaction or to a person who purchased the |
| |||||||
| |||||||
1 | customer receivable directly or
indirectly from | ||||||
2 | that seller.
| ||||||
3 | (ii) A corporation meeting each of the | ||||||
4 | following criteria:
| ||||||
5 | (a) the corporation must be a member of an | ||||||
6 | "affiliated group" within
the
meaning of | ||||||
7 | Section 1504(a) of the Internal Revenue Code, | ||||||
8 | determined
without regard to Section 1504(b) | ||||||
9 | of the Internal Revenue Code;
| ||||||
10 | (b) more than 50% of the gross income of | ||||||
11 | the corporation for the
taxable
year
must be | ||||||
12 | interest income derived from qualifying loans. | ||||||
13 | A "qualifying
loan" is a loan made to a member | ||||||
14 | of the corporation's affiliated group that
| ||||||
15 | originates customer receivables (within the | ||||||
16 | meaning of item (i)) or to whom
customer | ||||||
17 | receivables originated by a member of the | ||||||
18 | affiliated group have been
transferred, to
the | ||||||
19 | extent the average outstanding balance of | ||||||
20 | loans from that corporation
to members of its | ||||||
21 | affiliated group during the taxable year do not | ||||||
22 | exceed
the limitation amount for that | ||||||
23 | corporation. The "limitation amount" for a
| ||||||
24 | corporation is the average outstanding | ||||||
25 | balances during the taxable year of
customer | ||||||
26 | receivables (within the meaning of item (i)) |
| |||||||
| |||||||
1 | originated by
all members of the affiliated | ||||||
2 | group.
If the average outstanding balances of | ||||||
3 | the
loans made by a corporation to members of | ||||||
4 | its affiliated group exceed the
limitation | ||||||
5 | amount, the interest income of that | ||||||
6 | corporation from qualifying
loans shall be | ||||||
7 | equal to its interest income from loans to | ||||||
8 | members of its
affiliated groups times a | ||||||
9 | fraction equal to the limitation amount | ||||||
10 | divided by
the average outstanding balances of | ||||||
11 | the loans made by that corporation to
members | ||||||
12 | of its affiliated group;
| ||||||
13 | (c) the total of all shareholder's equity | ||||||
14 | (including, without
limitation,
paid-in
| ||||||
15 | capital on common and preferred stock and | ||||||
16 | retained earnings) of the
corporation plus the | ||||||
17 | total of all of its loans, advances, and other
| ||||||
18 | obligations payable or owed to members of its | ||||||
19 | affiliated group may not
exceed 20% of the | ||||||
20 | total assets of the corporation at any time | ||||||
21 | during the tax
year; and
| ||||||
22 | (d) more than 50% of all interest-bearing | ||||||
23 | obligations of the
affiliated group payable to | ||||||
24 | persons outside the group determined in | ||||||
25 | accordance
with generally accepted accounting | ||||||
26 | principles must be obligations of the
|
| |||||||
| |||||||
1 | corporation.
| ||||||
2 | This amendatory Act of the 91st General Assembly is | ||||||
3 | declaratory of
existing
law.
| ||||||
4 | (D) Subparagraphs
(B) and (C) of this paragraph are | ||||||
5 | declaratory of
existing law and apply retroactively, | ||||||
6 | for all tax years beginning on or before
December 31, | ||||||
7 | 1996,
to all original returns, to all amended returns | ||||||
8 | filed no later than 30
days after the effective date of | ||||||
9 | this amendatory Act of 1996, and to all
notices issued | ||||||
10 | on or before the effective date of this amendatory Act | ||||||
11 | of 1996
under subsection (a) of Section 903, subsection | ||||||
12 | (a) of Section 904,
subsection (e) of Section 909, or | ||||||
13 | Section 912.
A taxpayer that is a "financial | ||||||
14 | organization" that engages in any transaction
with an | ||||||
15 | affiliate shall be a "financial organization" for all | ||||||
16 | purposes of this
Act.
| ||||||
17 | (E) For all tax years beginning on or
before | ||||||
18 | December 31, 1996, a taxpayer that falls within the | ||||||
19 | definition
of a
"financial organization" under | ||||||
20 | subparagraphs (B) or (C) of this paragraph, but
who | ||||||
21 | does
not fall within the definition of a "financial | ||||||
22 | organization" under the Proposed
Regulations issued by | ||||||
23 | the Department of Revenue on July 19, 1996, may
| ||||||
24 | irrevocably elect to apply the Proposed Regulations | ||||||
25 | for all of those years as
though the Proposed | ||||||
26 | Regulations had been lawfully promulgated, adopted, |
| |||||||
| |||||||
1 | and in
effect for all of those years. For purposes of | ||||||
2 | applying subparagraphs (B) or
(C) of
this
paragraph to | ||||||
3 | all of those years, the election allowed by this | ||||||
4 | subparagraph
applies only to the taxpayer making the | ||||||
5 | election and to those members of the
taxpayer's unitary | ||||||
6 | business group who are ordinarily required to | ||||||
7 | apportion
business income under the same subsection of | ||||||
8 | Section 304 of this Act as the
taxpayer making the | ||||||
9 | election. No election allowed by this subparagraph | ||||||
10 | shall
be made under a claim
filed under subsection (d) | ||||||
11 | of Section 909 more than 30 days after the
effective | ||||||
12 | date of this amendatory Act of 1996.
| ||||||
13 | (F) Finance Leases. For purposes of this | ||||||
14 | subsection, a finance lease
shall be treated as a loan | ||||||
15 | or other extension of credit, rather than as a
lease,
| ||||||
16 | regardless of how the transaction is characterized for | ||||||
17 | any other purpose,
including the purposes of any | ||||||
18 | regulatory agency to which the lessor is subject.
A | ||||||
19 | finance lease is any transaction in the form of a lease | ||||||
20 | in which the lessee
is treated as the owner of the | ||||||
21 | leased asset entitled to any deduction for
| ||||||
22 | depreciation allowed under Section 167 of the Internal | ||||||
23 | Revenue Code.
| ||||||
24 | (9) Fiscal year. The term "fiscal year" means an | ||||||
25 | accounting period of
12 months ending on the last day of | ||||||
26 | any month other than December.
|
| |||||||
| |||||||
1 | (9.5) Fixed place of business. The term "fixed place of | ||||||
2 | business" has the same meaning as that term is given in | ||||||
3 | Section 864 of the Internal Revenue Code and the related | ||||||
4 | Treasury regulations.
| ||||||
5 | (10) Includes and including. The terms "includes" and | ||||||
6 | "including" when
used in a definition contained in this Act | ||||||
7 | shall not be deemed to exclude
other things otherwise | ||||||
8 | within the meaning of the term defined.
| ||||||
9 | (11) Internal Revenue Code. The term "Internal Revenue | ||||||
10 | Code" means the
United States Internal Revenue Code of 1954 | ||||||
11 | or any successor law or laws
relating to federal income | ||||||
12 | taxes in effect for the taxable year.
| ||||||
13 | (11.5) Investment partnership. | ||||||
14 | (A) The term "investment partnership" means any | ||||||
15 | entity that is treated as a partnership for federal | ||||||
16 | income tax purposes that meets the following | ||||||
17 | requirements: | ||||||
18 | (i) no less than 90% of the partnership's cost | ||||||
19 | of its total assets consists of qualifying | ||||||
20 | investment securities, deposits at banks or other | ||||||
21 | financial institutions, and office space and | ||||||
22 | equipment reasonably necessary to carry on its | ||||||
23 | activities as an investment partnership; | ||||||
24 | (ii) no less than 90% of its gross income | ||||||
25 | consists of interest, dividends, and gains from | ||||||
26 | the sale or exchange of qualifying investment |
| |||||||
| |||||||
1 | securities; and
| ||||||
2 | (iii) the partnership is not a dealer in | ||||||
3 | qualifying investment securities. | ||||||
4 | (B) For purposes of this paragraph (11.5), the term | ||||||
5 | "qualifying investment securities" includes all of the | ||||||
6 | following:
| ||||||
7 | (i) common stock, including preferred or debt | ||||||
8 | securities convertible into common stock, and | ||||||
9 | preferred stock; | ||||||
10 | (ii) bonds, debentures, and other debt | ||||||
11 | securities; | ||||||
12 | (iii) foreign and domestic currency deposits | ||||||
13 | secured by federal, state, or local governmental | ||||||
14 | agencies; | ||||||
15 | (iv) mortgage or asset-backed securities | ||||||
16 | secured by federal, state, or local governmental | ||||||
17 | agencies; | ||||||
18 | (v) repurchase agreements and loan | ||||||
19 | participations; | ||||||
20 | (vi) foreign currency exchange contracts and | ||||||
21 | forward and futures contracts on foreign | ||||||
22 | currencies; | ||||||
23 | (vii) stock and bond index securities and | ||||||
24 | futures contracts and other similar financial | ||||||
25 | securities and futures contracts on those | ||||||
26 | securities;
|
| |||||||
| |||||||
1 | (viii) options for the purchase or sale of any | ||||||
2 | of the securities, currencies, contracts, or | ||||||
3 | financial instruments described in items (i) to | ||||||
4 | (vii), inclusive;
| ||||||
5 | (ix) regulated futures contracts;
| ||||||
6 | (x) commodities (not described in Section | ||||||
7 | 1221(a)(1) of the Internal Revenue Code) or | ||||||
8 | futures, forwards, and options with respect to | ||||||
9 | such commodities, provided, however, that any item | ||||||
10 | of a physical commodity to which title is actually | ||||||
11 | acquired in the partnership's capacity as a dealer | ||||||
12 | in such commodity shall not be a qualifying | ||||||
13 | investment security;
| ||||||
14 | (xi) derivatives; and
| ||||||
15 | (xii) a partnership interest in another | ||||||
16 | partnership that is an investment partnership.
| ||||||
17 | (12) Mathematical error. The term "mathematical error" | ||||||
18 | includes the
following types of errors, omissions, or | ||||||
19 | defects in a return filed by a
taxpayer which prevents | ||||||
20 | acceptance of the return as filed for processing:
| ||||||
21 | (A) arithmetic errors or incorrect computations on | ||||||
22 | the return or
supporting schedules;
| ||||||
23 | (B) entries on the wrong lines;
| ||||||
24 | (C) omission of required supporting forms or | ||||||
25 | schedules or the omission
of the information in whole | ||||||
26 | or in part called for thereon; and
|
| |||||||
| |||||||
1 | (D) an attempt to claim, exclude, deduct, or | ||||||
2 | improperly report, in a
manner
directly contrary to the | ||||||
3 | provisions of the Act and regulations thereunder
any | ||||||
4 | item of income, exemption, deduction, or credit.
| ||||||
5 | (13) Nonbusiness income. The term "nonbusiness income" | ||||||
6 | means all income
other than business income or | ||||||
7 | compensation.
| ||||||
8 | (14) Nonresident. The term "nonresident" means a | ||||||
9 | person who is not a
resident.
| ||||||
10 | (15) Paid, incurred and accrued. The terms "paid", | ||||||
11 | "incurred" and
"accrued"
shall be construed according to | ||||||
12 | the method of accounting upon the basis
of which the | ||||||
13 | person's base income is computed under this Act.
| ||||||
14 | (16) Partnership and partner. The term "partnership" | ||||||
15 | includes a syndicate,
group, pool, joint venture or other | ||||||
16 | unincorporated organization, through
or by means of which | ||||||
17 | any business, financial operation, or venture is carried
| ||||||
18 | on, and which is not, within the meaning of this Act, a | ||||||
19 | trust or estate
or a corporation; and the term "partner" | ||||||
20 | includes a member in such syndicate,
group, pool, joint | ||||||
21 | venture or organization.
| ||||||
22 | The term "partnership" includes any entity, including | ||||||
23 | a limited
liability company formed under the Illinois
| ||||||
24 | Limited Liability Company Act, classified as a partnership | ||||||
25 | for federal income tax purposes.
| ||||||
26 | The term "partnership" does not include a syndicate, |
| |||||||
| |||||||
1 | group, pool,
joint venture, or other unincorporated | ||||||
2 | organization established for the
sole purpose of playing | ||||||
3 | the Illinois State Lottery.
| ||||||
4 | (17) Part-year resident. The term "part-year resident" | ||||||
5 | means an individual
who became a resident during the | ||||||
6 | taxable year or ceased to be a resident
during the taxable | ||||||
7 | year. Under Section 1501(a)(20)(A)(i) residence
commences | ||||||
8 | with presence in this State for other than a temporary or | ||||||
9 | transitory
purpose and ceases with absence from this State | ||||||
10 | for other than a temporary or
transitory purpose. Under | ||||||
11 | Section 1501(a)(20)(A)(ii) residence commences
with the | ||||||
12 | establishment of domicile in this State and ceases with the
| ||||||
13 | establishment of domicile in another State.
| ||||||
14 | (18) Person. The term "person" shall be construed to | ||||||
15 | mean and include
an individual, a trust, estate, | ||||||
16 | partnership, association, firm, company,
corporation, | ||||||
17 | limited liability company, or fiduciary. For purposes of | ||||||
18 | Section
1301 and 1302 of this Act, a "person" means (i) an | ||||||
19 | individual, (ii) a
corporation, (iii) an officer, agent, or | ||||||
20 | employee of a
corporation, (iv) a member, agent or employee | ||||||
21 | of a partnership, or (v)
a member,
manager, employee, | ||||||
22 | officer, director, or agent of a limited liability company
| ||||||
23 | who in such capacity commits an offense specified in | ||||||
24 | Section 1301 and 1302.
| ||||||
25 | (18A) Records. The term "records" includes all data | ||||||
26 | maintained by the
taxpayer, whether on paper, microfilm, |
| |||||||
| |||||||
1 | microfiche, or any type of
machine-sensible data | ||||||
2 | compilation.
| ||||||
3 | (19) Regulations. The term "regulations" includes | ||||||
4 | rules promulgated and
forms prescribed by the Department.
| ||||||
5 | (20) Resident. The term "resident" means:
| ||||||
6 | (A) an individual (i) who is
in this State for | ||||||
7 | other than a temporary or transitory purpose during the
| ||||||
8 | taxable year; or (ii) who is domiciled in this State | ||||||
9 | but is absent from
the State for a temporary or | ||||||
10 | transitory purpose during the taxable year;
| ||||||
11 | (B) The estate of a decedent who at his or her | ||||||
12 | death was domiciled in
this
State;
| ||||||
13 | (C) A trust created by a will of a decedent who at | ||||||
14 | his death was
domiciled
in this State; and
| ||||||
15 | (D) An irrevocable trust, the grantor of which was | ||||||
16 | domiciled in this
State
at the time such trust became | ||||||
17 | irrevocable. For purpose of this subparagraph,
a trust | ||||||
18 | shall be considered irrevocable to the extent that the | ||||||
19 | grantor is
not treated as the owner thereof under | ||||||
20 | Sections 671 through 678 of the Internal
Revenue Code.
| ||||||
21 | (21) Sales. The term "sales" means all gross receipts | ||||||
22 | of the taxpayer
not allocated under Sections 301, 302 and | ||||||
23 | 303.
| ||||||
24 | (22) State. The term "state" when applied to a | ||||||
25 | jurisdiction other than
this State means any state of the | ||||||
26 | United States, the District of Columbia,
the Commonwealth |
| |||||||
| |||||||
1 | of Puerto Rico, any Territory or Possession of the United
| ||||||
2 | States, and any foreign country, or any political | ||||||
3 | subdivision of any of the
foregoing. For purposes of the | ||||||
4 | foreign tax credit under Section 601, the
term "state" | ||||||
5 | means any state of the United States, the District of | ||||||
6 | Columbia,
the Commonwealth of Puerto Rico, and any | ||||||
7 | territory or possession of the
United States, or any | ||||||
8 | political subdivision of any of the foregoing,
effective | ||||||
9 | for tax years ending on or after December 31, 1989.
| ||||||
10 | (23) Taxable year. The term "taxable year" means the | ||||||
11 | calendar year, or
the fiscal year ending during such | ||||||
12 | calendar year, upon the basis of which
the base income is | ||||||
13 | computed under this Act. "Taxable year" means, in the
case | ||||||
14 | of a return made for a fractional part of a year under the | ||||||
15 | provisions
of this Act, the period for which such return is | ||||||
16 | made.
| ||||||
17 | (24) Taxpayer. The term "taxpayer" means any person | ||||||
18 | subject to the tax
imposed by this Act.
| ||||||
19 | (25) International banking facility. The term | ||||||
20 | international banking
facility shall have the same meaning | ||||||
21 | as is set forth in the Illinois Banking
Act or as is set | ||||||
22 | forth in the laws of the United States or regulations of
| ||||||
23 | the Board of Governors of the Federal Reserve System.
| ||||||
24 | (26) Income Tax Return Preparer.
| ||||||
25 | (A) The term "income tax return preparer"
means any | ||||||
26 | person who prepares for compensation, or who employs |
| |||||||
| |||||||
1 | one or more
persons to prepare for compensation, any | ||||||
2 | return of tax imposed by this Act
or any claim for | ||||||
3 | refund of tax imposed by this Act. The preparation of a
| ||||||
4 | substantial portion of a return or claim for refund | ||||||
5 | shall be treated as
the preparation of that return or | ||||||
6 | claim for refund.
| ||||||
7 | (B) A person is not an income tax return preparer | ||||||
8 | if all he or she does
is
| ||||||
9 | (i) furnish typing, reproducing, or other | ||||||
10 | mechanical assistance;
| ||||||
11 | (ii) prepare returns or claims for refunds for | ||||||
12 | the employer by whom he
or she is regularly and | ||||||
13 | continuously employed;
| ||||||
14 | (iii) prepare as a fiduciary returns or claims | ||||||
15 | for refunds for any
person; or
| ||||||
16 | (iv) prepare claims for refunds for a taxpayer | ||||||
17 | in response to any
notice
of deficiency issued to | ||||||
18 | that taxpayer or in response to any waiver of
| ||||||
19 | restriction after the commencement of an audit of | ||||||
20 | that taxpayer or of another
taxpayer if a | ||||||
21 | determination in the audit of the other taxpayer | ||||||
22 | directly or
indirectly affects the tax liability | ||||||
23 | of the taxpayer whose claims he or she is
| ||||||
24 | preparing.
| ||||||
25 | (27) Unitary business group. | ||||||
26 | (A) The term "unitary business group" means
a group |
| |||||||
| |||||||
1 | of persons related through common ownership whose | ||||||
2 | business activities
are integrated with, dependent | ||||||
3 | upon and contribute to each other. The group
will not | ||||||
4 | include those members whose business activity outside | ||||||
5 | the United
States is 80% or more of any such member's | ||||||
6 | total business activity; for
purposes of this | ||||||
7 | paragraph and clause (a)(3)(B)(ii) of Section 304,
| ||||||
8 | business
activity within the United States shall be | ||||||
9 | measured by means of the factors
ordinarily applicable | ||||||
10 | under subsections (a), (b), (c), (d), or (h)
of Section
| ||||||
11 | 304 except that, in the case of members ordinarily | ||||||
12 | required to apportion
business income by means of the 3 | ||||||
13 | factor formula of property, payroll and sales
| ||||||
14 | specified in subsection (a) of Section 304, including | ||||||
15 | the
formula as weighted in subsection (h) of Section | ||||||
16 | 304, such members shall
not use the sales factor in the | ||||||
17 | computation and the results of the property
and payroll | ||||||
18 | factor computations of subsection (a) of Section 304 | ||||||
19 | shall be
divided by 2 (by one if either
the property or | ||||||
20 | payroll factor has a denominator of zero). The | ||||||
21 | computation
required by the preceding sentence shall, | ||||||
22 | in each case, involve the division of
the member's | ||||||
23 | property, payroll, or revenue miles in the United | ||||||
24 | States,
insurance premiums on property or risk in the | ||||||
25 | United States, or financial
organization business | ||||||
26 | income from sources within the United States, as the
|
| |||||||
| |||||||
1 | case may be, by the respective worldwide figures for | ||||||
2 | such items. Common
ownership in the case of | ||||||
3 | corporations is the direct or indirect control or
| ||||||
4 | ownership of more than 50% of the outstanding voting | ||||||
5 | stock of the persons
carrying on unitary business | ||||||
6 | activity. Unitary business activity can
ordinarily be | ||||||
7 | illustrated where the activities of the members are: | ||||||
8 | (1) in the
same general line (such as manufacturing, | ||||||
9 | wholesaling, retailing of tangible
personal property, | ||||||
10 | insurance, transportation or finance); or (2) are | ||||||
11 | steps in a
vertically structured enterprise or process | ||||||
12 | (such as the steps involved in the
production of | ||||||
13 | natural resources, which might include exploration, | ||||||
14 | mining,
refining, and marketing); and, in either | ||||||
15 | instance, the members are functionally
integrated | ||||||
16 | through the exercise of strong centralized management | ||||||
17 | (where, for
example, authority over such matters as | ||||||
18 | purchasing, financing, tax compliance,
product line, | ||||||
19 | personnel, marketing and capital investment is not | ||||||
20 | left to each
member).
| ||||||
21 | (B) In no event, shall any
unitary business group | ||||||
22 | include members
which are ordinarily required to | ||||||
23 | apportion business income under different
subsections | ||||||
24 | of Section 304 except that for tax years ending on or | ||||||
25 | after
December 31, 1987 this prohibition shall not | ||||||
26 | apply to a holding company that would otherwise be a |
| |||||||
| |||||||
1 | member of a unitary business group with taxpayers that | ||||||
2 | apportion business income under any of subsections | ||||||
3 | (b), (c), (c-1), or (d) of Section 304. If a unitary | ||||||
4 | business
group would, but for the preceding sentence, | ||||||
5 | include members that are
ordinarily required to | ||||||
6 | apportion business income under different subsections | ||||||
7 | of
Section 304, then for each subsection of Section 304 | ||||||
8 | for which there are two or
more members, there shall be | ||||||
9 | a separate unitary business group composed of such
| ||||||
10 | members. For purposes of the preceding two sentences, a | ||||||
11 | member is "ordinarily
required to apportion business | ||||||
12 | income" under a particular subsection of Section
304 if | ||||||
13 | it would be required to use the apportionment method | ||||||
14 | prescribed by such
subsection except for the fact that | ||||||
15 | it derives business income solely from
Illinois. As | ||||||
16 | used in this paragraph, the phrase "United States" | ||||||
17 | means only the 50 states and the District of Columbia, | ||||||
18 | but does not include any territory or possession of the | ||||||
19 | United States or any area over which the United States | ||||||
20 | has asserted jurisdiction or claimed exclusive rights | ||||||
21 | with respect to the exploration for or exploitation of | ||||||
22 | natural resources.
| ||||||
23 | (C) Holding companies. | ||||||
24 | (i) For purposes of this subparagraph, a | ||||||
25 | "holding company" is a corporation (other than a | ||||||
26 | corporation that is a financial organization under |
| |||||||
| |||||||
1 | paragraph (8) of this subsection (a) of Section | ||||||
2 | 1501 because it is a bank holding company under the | ||||||
3 | provisions of the Bank Holding Company Act of 1956 | ||||||
4 | (12 U.S.C. 1841, et seq.) or because it is owned by | ||||||
5 | a bank or a bank holding company) that owns a | ||||||
6 | controlling interest in one or more other | ||||||
7 | taxpayers ("controlled taxpayers"); that, during | ||||||
8 | the period that includes the taxable year and the 2 | ||||||
9 | immediately preceding taxable years or, if the | ||||||
10 | corporation was formed during the current or | ||||||
11 | immediately preceding taxable year, the taxable | ||||||
12 | years in which the corporation has been in | ||||||
13 | existence, derived substantially all its gross | ||||||
14 | income from dividends, interest, rents, royalties, | ||||||
15 | fees or other charges received from controlled | ||||||
16 | taxpayers for the provision of services, and gains | ||||||
17 | on the sale or other disposition of interests in | ||||||
18 | controlled taxpayers or in property leased or | ||||||
19 | licensed to controlled taxpayers or used by the | ||||||
20 | taxpayer in providing services to controlled | ||||||
21 | taxpayers; and that incurs no substantial expenses | ||||||
22 | other than expenses (including interest and other | ||||||
23 | costs of borrowing) incurred in connection with | ||||||
24 | the acquisition and holding of interests in | ||||||
25 | controlled taxpayers and in the provision of | ||||||
26 | services to controlled taxpayers or in the leasing |
| |||||||
| |||||||
1 | or licensing of property to controlled taxpayers. | ||||||
2 | (ii) The income of a holding company which is a | ||||||
3 | member of more than one unitary business group | ||||||
4 | shall be included in each unitary business group of | ||||||
5 | which it is a member on a pro rata basis, by | ||||||
6 | including in each unitary business group that | ||||||
7 | portion of the base income of the holding company | ||||||
8 | that bears the same proportion to the total base | ||||||
9 | income of the holding company as the gross receipts | ||||||
10 | of the unitary business group bears to the combined | ||||||
11 | gross receipts of all unitary business groups (in | ||||||
12 | both cases without regard to the holding company) | ||||||
13 | or on any other reasonable basis, consistently | ||||||
14 | applied. | ||||||
15 | (iii) A holding company shall apportion its | ||||||
16 | business income under the subsection of Section | ||||||
17 | 304 used by the other members of its unitary | ||||||
18 | business group. The apportionment factors of a | ||||||
19 | holding company which would be a member of more | ||||||
20 | than one unitary business group shall be included | ||||||
21 | with the apportionment factors of each unitary | ||||||
22 | business group of which it is a member on a pro | ||||||
23 | rata basis using the same method used in clause | ||||||
24 | (ii). | ||||||
25 | (iv) The provisions of this subparagraph (C) | ||||||
26 | are intended to clarify existing law. |
| |||||||
| |||||||
1 | (D) If including the base income and factors of a | ||||||
2 | holding company in more than one unitary business group | ||||||
3 | under subparagraph (C) does not fairly reflect the | ||||||
4 | degree of integration between the holding company and | ||||||
5 | one or more of the unitary business groups, the | ||||||
6 | dependence of the holding company and one or more of | ||||||
7 | the unitary business groups upon each other, or the | ||||||
8 | contributions between the holding company and one or | ||||||
9 | more of the unitary business groups, the holding | ||||||
10 | company may petition the Director, under the | ||||||
11 | procedures provided under Section 304(f), for | ||||||
12 | permission to include all base income and factors of | ||||||
13 | the holding company only with members of a unitary | ||||||
14 | business group apportioning their business income | ||||||
15 | under one subsection of subsections (a), (b), (c), or | ||||||
16 | (d) of Section 304. If the petition is granted, the | ||||||
17 | holding company shall be included in a unitary business | ||||||
18 | group only with persons apportioning their business | ||||||
19 | income under the selected subsection of Section 304 | ||||||
20 | until the Director grants a petition of the holding | ||||||
21 | company either to be included in more than one unitary | ||||||
22 | business group under subparagraph (C) or to include its | ||||||
23 | base income and factors only with members of a unitary | ||||||
24 | business group apportioning their business income | ||||||
25 | under a different subsection of Section 304. | ||||||
26 | (E) If the unitary business group members' |
| |||||||
| |||||||
1 | accounting periods differ,
the common parent's | ||||||
2 | accounting period or, if there is no common parent, the
| ||||||
3 | accounting period of the member that is expected to | ||||||
4 | have, on a recurring basis,
the greatest Illinois | ||||||
5 | income tax liability must be used to determine whether | ||||||
6 | to
use the apportionment method provided in subsection | ||||||
7 | (a) or subsection (h) of
Section 304. The
prohibition | ||||||
8 | against membership in a unitary business group for | ||||||
9 | taxpayers
ordinarily required to apportion income | ||||||
10 | under different subsections of Section
304 does not | ||||||
11 | apply to taxpayers required to apportion income under | ||||||
12 | subsection
(a) and subsection (h) of Section
304. The | ||||||
13 | provisions of this amendatory Act of 1998 apply to tax
| ||||||
14 | years ending on or after December 31, 1998.
| ||||||
15 | (28) Subchapter S corporation. The term "Subchapter S | ||||||
16 | corporation"
means a corporation for which there is in | ||||||
17 | effect an election under Section
1362 of the Internal | ||||||
18 | Revenue Code, or for which there is a federal election
to | ||||||
19 | opt out of the provisions of the Subchapter S Revision Act | ||||||
20 | of 1982 and
have applied instead the prior federal | ||||||
21 | Subchapter S rules as in effect on July
1, 1982.
| ||||||
22 | (30) Foreign person. The term "foreign person" means | ||||||
23 | any person who is a nonresident alien individual and any | ||||||
24 | nonindividual entity, regardless of where created or | ||||||
25 | organized, whose business activity outside the United | ||||||
26 | States is 80% or more of the entity's total business |
| |||||||
| |||||||
1 | activity.
| ||||||
2 | (b) Other definitions.
| ||||||
3 | (1) Words denoting number, gender, and so forth,
when | ||||||
4 | used in this Act, where not otherwise distinctly expressed | ||||||
5 | or manifestly
incompatible with the intent thereof:
| ||||||
6 | (A) Words importing the singular include and apply | ||||||
7 | to several persons,
parties or things;
| ||||||
8 | (B) Words importing the plural include the | ||||||
9 | singular; and
| ||||||
10 | (C) Words importing the masculine gender include | ||||||
11 | the feminine as well.
| ||||||
12 | (2) "Company" or "association" as including successors | ||||||
13 | and assigns. The
word "company" or "association", when used | ||||||
14 | in reference to a corporation,
shall be deemed to embrace | ||||||
15 | the words "successors and assigns of such company
or | ||||||
16 | association", and in like manner as if these last-named | ||||||
17 | words, or words
of similar import, were expressed.
| ||||||
18 | (3) Other terms. Any term used in any Section of this | ||||||
19 | Act with respect
to the application of, or in connection | ||||||
20 | with, the provisions of any other
Section of this Act shall | ||||||
21 | have the same meaning as in such other Section.
| ||||||
22 | (Source: P.A. 96-641, eff. 8-24-09; 97-507, eff. 8-23-11.)
| ||||||
23 | Section 15-15. The Economic Development for a Growing | ||||||
24 | Economy Tax Credit Act is amended by changing Section 5-15 as |
| |||||||
| |||||||
1 | follows:
| ||||||
2 | (35 ILCS 10/5-15) | ||||||
3 | Sec. 5-15. Tax Credit Awards. Subject to the conditions set | ||||||
4 | forth in this
Act, a Taxpayer is
entitled to a Credit against | ||||||
5 | or, as described in subsection (g) of this Section, a payment | ||||||
6 | towards taxes imposed pursuant to subsections (a) and (b)
of | ||||||
7 | Section 201 of the Illinois
Income Tax Act that may be imposed | ||||||
8 | on the Taxpayer for a taxable year beginning
on or
after | ||||||
9 | January 1, 1999,
if the Taxpayer is awarded a Credit by the | ||||||
10 | Department under this Act for that
taxable year. | ||||||
11 | (a) The Department shall make Credit awards under this Act | ||||||
12 | to foster job
creation and retention in Illinois. | ||||||
13 | (b) A person that proposes a project to create new jobs in | ||||||
14 | Illinois must
enter into an Agreement with the
Department for | ||||||
15 | the Credit under this Act. | ||||||
16 | (c) The Credit shall be claimed for the taxable years | ||||||
17 | specified in the
Agreement. | ||||||
18 | (d) The Credit shall not exceed the Incremental Income Tax | ||||||
19 | attributable to
the project that is the subject of the | ||||||
20 | Agreement. | ||||||
21 | (e) Nothing herein shall prohibit a Tax Credit Award to an | ||||||
22 | Applicant that uses a PEO if all other award criteria are | ||||||
23 | satisfied.
| ||||||
24 | (f) In lieu of the Credit allowed under this Act against | ||||||
25 | the taxes imposed pursuant to subsections (a) and (b) of |
| |||||||
| |||||||
1 | Section 201 of the Illinois Income Tax Act for any taxable year | ||||||
2 | ending on or after December 31, 2009, the Taxpayer may elect to | ||||||
3 | claim the Credit against its obligation to pay over withholding | ||||||
4 | under Section 704A of the Illinois Income Tax Act. | ||||||
5 | (1) The election under this subsection (f) may be made | ||||||
6 | only by a Taxpayer that (i) is primarily engaged in one of | ||||||
7 | the following business activities: water purification and | ||||||
8 | treatment, motor vehicle metal stamping, automobile | ||||||
9 | manufacturing, automobile and light duty motor vehicle | ||||||
10 | manufacturing, motor vehicle manufacturing, light truck | ||||||
11 | and utility vehicle manufacturing, heavy duty truck | ||||||
12 | manufacturing, motor vehicle body manufacturing, cable | ||||||
13 | television infrastructure design or manufacturing, or | ||||||
14 | wireless telecommunication or computing terminal device | ||||||
15 | design or manufacturing for use on public networks and (ii) | ||||||
16 | meets the following criteria: | ||||||
17 | (A) the Taxpayer (i) had an Illinois net loss or an | ||||||
18 | Illinois net loss deduction under Section 207 of the | ||||||
19 | Illinois Income Tax Act for the taxable year in which | ||||||
20 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
21 | full-time employees in this State during the taxable | ||||||
22 | year in which the Credit is awarded, (iii) has an | ||||||
23 | Agreement under this Act on December 14, 2009 (the | ||||||
24 | effective date of Public Act 96-834), and (iv) is in | ||||||
25 | compliance with all provisions of that Agreement; | ||||||
26 | (B) the Taxpayer (i) had an Illinois net loss or an |
| |||||||
| |||||||
1 | Illinois net loss deduction under Section 207 of the | ||||||
2 | Illinois Income Tax Act for the taxable year in which | ||||||
3 | the Credit is awarded, (ii) employed a minimum of 1,000 | ||||||
4 | full-time employees in this State during the taxable | ||||||
5 | year in which the Credit is awarded, and (iii) has | ||||||
6 | applied for an Agreement within 365 days after December | ||||||
7 | 14, 2009 (the effective date of Public Act 96-834); | ||||||
8 | (C) the Taxpayer (i) had an Illinois net operating | ||||||
9 | loss carryforward under Section 207 of the Illinois | ||||||
10 | Income Tax Act in a taxable year ending during calendar | ||||||
11 | year 2008, (ii) has applied for an Agreement within 150 | ||||||
12 | days after the effective date of this amendatory Act of | ||||||
13 | the 96th General Assembly, (iii) creates at least 400 | ||||||
14 | new jobs in Illinois, (iv) retains at least 2,000 jobs | ||||||
15 | in Illinois that would have been at risk of relocation | ||||||
16 | out of Illinois over a 10-year period, and (v) makes a | ||||||
17 | capital investment of at least $75,000,000; | ||||||
18 | (D) the Taxpayer (i) had an Illinois net operating | ||||||
19 | loss carryforward under Section 207 of the Illinois | ||||||
20 | Income Tax Act in a taxable year ending during calendar | ||||||
21 | year 2009, (ii) has applied for an Agreement within 150 | ||||||
22 | days after the effective date of this amendatory Act of | ||||||
23 | the 96th General Assembly, (iii) creates at least 150 | ||||||
24 | new jobs, (iv) retains at least 1,000 jobs in Illinois | ||||||
25 | that would have been at risk of relocation out of | ||||||
26 | Illinois over a 10-year period, and (v) makes a capital |
| |||||||
| |||||||
1 | investment of at least $57,000,000; or | ||||||
2 | (E) the Taxpayer (i) employed at least 2,500 | ||||||
3 | full-time employees in the State during the year in | ||||||
4 | which the Credit is awarded, (ii) commits to make at | ||||||
5 | least $500,000,000 in combined capital improvements | ||||||
6 | and project costs under the Agreement, (iii) applies | ||||||
7 | for an Agreement between January 1, 2011 and June 30, | ||||||
8 | 2011, (iv) executes an Agreement for the Credit during | ||||||
9 | calendar year 2011, and (v) was incorporated no more | ||||||
10 | than 5 years before the filing of an application for an | ||||||
11 | Agreement. | ||||||
12 | (1.5) The election under this subsection (f) may also | ||||||
13 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
14 | agreement that was executed between January 1, 2011 and | ||||||
15 | June 30, 2011, if the Taxpayer (i) is primarily engaged in | ||||||
16 | the manufacture of inner tubes or tires, or both, from | ||||||
17 | natural and synthetic rubber, (ii) employs a minimum of | ||||||
18 | 2,400 full-time employees in Illinois at the time of | ||||||
19 | application, (iii) creates at least 350 full-time jobs and | ||||||
20 | retains at least 250 full-time jobs in Illinois that would | ||||||
21 | have been at risk of being created or retained outside of | ||||||
22 | Illinois, and (iv) makes a capital investment of at least | ||||||
23 | $200,000,000 at the project location. | ||||||
24 | (1.6) The election under this subsection (f) may also | ||||||
25 | be made by a Taxpayer for any Credit awarded pursuant to an | ||||||
26 | agreement that was executed within 150 days after the |
| |||||||
| |||||||
1 | effective date of this amendatory Act of the 97th General | ||||||
2 | Assembly, if the Taxpayer (i) is primarily engaged in the | ||||||
3 | operation of a discount department store, (ii) maintains | ||||||
4 | its corporate headquarters in Illinois, (iii) employs a | ||||||
5 | minimum of 4,250 full time employees at its corporate | ||||||
6 | headquarters in Illinois at the time of application, (iv) | ||||||
7 | retains at least 4,250 full time jobs in Illinois that | ||||||
8 | would have been at risk of being relocated outside of | ||||||
9 | Illinois, (v) had a minimum of $40,000,000,000 in total | ||||||
10 | revenue in 2010, and (vi) makes a capital investment of at | ||||||
11 | least $300,000,000 at the project location. | ||||||
12 | (2) An election under this subsection shall allow the | ||||||
13 | credit to be taken against payments otherwise due under | ||||||
14 | Section 704A of the Illinois Income Tax Act during the | ||||||
15 | first calendar year beginning after the end of the taxable | ||||||
16 | year in which the credit is awarded under this Act. | ||||||
17 | (3) The election shall be made in the form and manner | ||||||
18 | required by the Illinois Department of Revenue and, once | ||||||
19 | made, shall be irrevocable. | ||||||
20 | (4) If a Taxpayer who meets the requirements of | ||||||
21 | subparagraph (A) of paragraph (1) of this subsection (f) | ||||||
22 | elects to claim the Credit against its withholdings as | ||||||
23 | provided in this subsection (f), then, on and after the | ||||||
24 | date of the election, the terms of the Agreement between | ||||||
25 | the Taxpayer and the Department may not be further amended | ||||||
26 | during the term of the Agreement. |
| |||||||
| |||||||
1 | (g) A pass-through entity that has been awarded a credit | ||||||
2 | under this Act, its shareholders, or its partners may treat | ||||||
3 | some or all of the credit awarded pursuant to this Act as a tax | ||||||
4 | payment for purposes of the Illinois Income Tax Act. The term | ||||||
5 | "tax payment" means a payment as described in Article 6 or | ||||||
6 | Article 8 of the Illinois Income Tax Act or a composite payment | ||||||
7 | made by a pass-through entity on behalf of any of its | ||||||
8 | shareholders or partners to satisfy such shareholders' or | ||||||
9 | partners' taxes imposed pursuant to subsections (a) and (b) of | ||||||
10 | Section 201 of the Illinois Income Tax Act. In no event shall | ||||||
11 | the amount of the award credited pursuant to this Act exceed | ||||||
12 | the Illinois income tax liability of the pass-through entity or | ||||||
13 | its shareholders or partners for the taxable year. | ||||||
14 | (Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09; | ||||||
15 | 96-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff. | ||||||
16 | 3-4-11; 97-2, eff. 5-6-11.)
| ||||||
17 | Section 15-20. The Use Tax Act is amended by changing | ||||||
18 | Sections 3-10 and 3-90 as follows:
| ||||||
19 | (35 ILCS 105/3-10)
| ||||||
20 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
21 | Section, the tax
imposed by this Act is at the rate of 6.25% of | ||||||
22 | either the selling price or the
fair market value, if any, of | ||||||
23 | the tangible personal property. In all cases
where property | ||||||
24 | functionally used or consumed is the same as the property that
|
| |||||||
| |||||||
1 | was purchased at retail, then the tax is imposed on the selling | ||||||
2 | price of the
property. In all cases where property functionally | ||||||
3 | used or consumed is a
by-product or waste product that has been | ||||||
4 | refined, manufactured, or produced
from property purchased at | ||||||
5 | retail, then the tax is imposed on the lower of the
fair market | ||||||
6 | value, if any, of the specific property so used in this State | ||||||
7 | or on
the selling price of the property purchased at retail. | ||||||
8 | For purposes of this
Section "fair market value" means the | ||||||
9 | price at which property would change
hands between a willing | ||||||
10 | buyer and a willing seller, neither being under any
compulsion | ||||||
11 | to buy or sell and both having reasonable knowledge of the
| ||||||
12 | relevant facts. The fair market value shall be established by | ||||||
13 | Illinois sales by
the taxpayer of the same property as that | ||||||
14 | functionally used or consumed, or if
there are no such sales by | ||||||
15 | the taxpayer, then comparable sales or purchases of
property of | ||||||
16 | like kind and character in Illinois.
| ||||||
17 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
18 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
19 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
20 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
| ||||||
21 | Beginning on August 6, 2010 through August 15, 2010, with | ||||||
22 | respect to sales tax holiday items as defined in Section 3-6 of | ||||||
23 | this Act, the
tax is imposed at the rate of 1.25%. | ||||||
24 | With respect to gasohol, the tax imposed by this Act | ||||||
25 | applies to (i) 70%
of the proceeds of sales made on or after | ||||||
26 | January 1, 1990, and before
July 1, 2003, (ii) 80% of the |
| |||||||
| |||||||
1 | proceeds of sales made
on or after July 1, 2003 and on or | ||||||
2 | before December 31, 2018 2013 , and (iii) 100% of the proceeds | ||||||
3 | of sales made
thereafter.
If, at any time, however, the tax | ||||||
4 | under this Act on sales of gasohol is
imposed at the
rate of | ||||||
5 | 1.25%, then the tax imposed by this Act applies to 100% of the | ||||||
6 | proceeds
of sales of gasohol made during that time.
| ||||||
7 | With respect to majority blended ethanol fuel, the tax | ||||||
8 | imposed by this Act
does
not apply
to the proceeds of sales | ||||||
9 | made on or after July 1, 2003 and on or before
December
31, | ||||||
10 | 2018 2013 but applies to 100% of the proceeds of sales made | ||||||
11 | thereafter.
| ||||||
12 | With respect to biodiesel blends with no less than 1% and | ||||||
13 | no more than 10%
biodiesel, the tax imposed by this Act applies | ||||||
14 | to (i) 80% of the
proceeds of sales made on or after July 1, | ||||||
15 | 2003 and on or before December 31, 2018
2013 and (ii) 100% of | ||||||
16 | the proceeds of sales made
thereafter.
If, at any time, | ||||||
17 | however, the tax under this Act on sales of biodiesel blends
| ||||||
18 | with no less than 1% and no more than 10% biodiesel
is imposed | ||||||
19 | at the rate of
1.25%, then the
tax imposed by this Act applies | ||||||
20 | to 100% of the proceeds of sales of biodiesel
blends with no | ||||||
21 | less than 1% and no more than 10% biodiesel
made
during that | ||||||
22 | time.
| ||||||
23 | With respect to 100% biodiesel and biodiesel blends with | ||||||
24 | more than 10%
but no more than 99% biodiesel, the tax imposed | ||||||
25 | by this Act does not apply to
the
proceeds of sales made on or | ||||||
26 | after July 1, 2003 and on or before
December 31, 2018 2013 but |
| |||||||
| |||||||
1 | applies to 100% of the proceeds of sales made
thereafter.
| ||||||
2 | With respect to food for human consumption that is to be | ||||||
3 | consumed off the
premises where it is sold (other than | ||||||
4 | alcoholic beverages, soft drinks, and
food that has been | ||||||
5 | prepared for immediate consumption) and prescription and
| ||||||
6 | nonprescription medicines, drugs, medical appliances, | ||||||
7 | modifications to a motor
vehicle for the purpose of rendering | ||||||
8 | it usable by a disabled person, and
insulin, urine testing | ||||||
9 | materials, syringes, and needles used by diabetics, for
human | ||||||
10 | use, the tax is imposed at the rate of 1%. For the purposes of | ||||||
11 | this
Section, until September 1, 2009: the term "soft drinks" | ||||||
12 | means any complete, finished, ready-to-use,
non-alcoholic | ||||||
13 | drink, whether carbonated or not, including but not limited to
| ||||||
14 | soda water, cola, fruit juice, vegetable juice, carbonated | ||||||
15 | water, and all other
preparations commonly known as soft drinks | ||||||
16 | of whatever kind or description that
are contained in any | ||||||
17 | closed or sealed bottle, can, carton, or container,
regardless | ||||||
18 | of size; but "soft drinks" does not include coffee, tea, | ||||||
19 | non-carbonated
water, infant formula, milk or milk products as | ||||||
20 | defined in the Grade A
Pasteurized Milk and Milk Products Act, | ||||||
21 | or drinks containing 50% or more
natural fruit or vegetable | ||||||
22 | juice.
| ||||||
23 | Notwithstanding any other provisions of this
Act, | ||||||
24 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
25 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
26 | drinks" do not include beverages that contain milk or milk |
| |||||||
| |||||||
1 | products, soy, rice or similar milk substitutes, or greater | ||||||
2 | than 50% of vegetable or fruit juice by volume. | ||||||
3 | Until August 1, 2009, and notwithstanding any other | ||||||
4 | provisions of this
Act, "food for human consumption that is to | ||||||
5 | be consumed off the premises where
it is sold" includes all | ||||||
6 | food sold through a vending machine, except soft
drinks and | ||||||
7 | food products that are dispensed hot from a vending machine,
| ||||||
8 | regardless of the location of the vending machine. Beginning | ||||||
9 | August 1, 2009, and notwithstanding any other provisions of | ||||||
10 | this Act, "food for human consumption that is to be consumed | ||||||
11 | off the premises where it is sold" includes all food sold | ||||||
12 | through a vending machine, except soft drinks, candy, and food | ||||||
13 | products that are dispensed hot from a vending machine, | ||||||
14 | regardless of the location of the vending machine.
| ||||||
15 | Notwithstanding any other provisions of this
Act, | ||||||
16 | beginning September 1, 2009, "food for human consumption that | ||||||
17 | is to be consumed off the premises where
it is sold" does not | ||||||
18 | include candy. For purposes of this Section, "candy" means a | ||||||
19 | preparation of sugar, honey, or other natural or artificial | ||||||
20 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
21 | ingredients or flavorings in the form of bars, drops, or | ||||||
22 | pieces. "Candy" does not include any preparation that contains | ||||||
23 | flour or requires refrigeration. | ||||||
24 | Notwithstanding any other provisions of this
Act, | ||||||
25 | beginning September 1, 2009, "nonprescription medicines and | ||||||
26 | drugs" does not include grooming and hygiene products. For |
| |||||||
| |||||||
1 | purposes of this Section, "grooming and hygiene products" | ||||||
2 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
3 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
4 | lotions and screens, unless those products are available by | ||||||
5 | prescription only, regardless of whether the products meet the | ||||||
6 | definition of "over-the-counter-drugs". For the purposes of | ||||||
7 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
8 | use that contains a label that identifies the product as a drug | ||||||
9 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
10 | label includes: | ||||||
11 | (A) A "Drug Facts" panel; or | ||||||
12 | (B) A statement of the "active ingredient(s)" with a | ||||||
13 | list of those ingredients contained in the compound, | ||||||
14 | substance or preparation. | ||||||
15 | If the property that is purchased at retail from a retailer | ||||||
16 | is acquired
outside Illinois and used outside Illinois before | ||||||
17 | being brought to Illinois
for use here and is taxable under | ||||||
18 | this Act, the "selling price" on which
the tax is computed | ||||||
19 | shall be reduced by an amount that represents a
reasonable | ||||||
20 | allowance for depreciation for the period of prior out-of-state | ||||||
21 | use.
| ||||||
22 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | ||||||
23 | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
| ||||||
24 | (35 ILCS 105/3-90)
| ||||||
25 | Sec. 3-90. Sunset of exemptions, credits, and deductions. |
| |||||||
| |||||||
1 | (a) The application
of every exemption, credit, and | ||||||
2 | deduction against tax imposed by this Act that
becomes law | ||||||
3 | after the effective date of this amendatory Act of 1994 shall | ||||||
4 | be
limited by a reasonable and appropriate sunset date. A | ||||||
5 | taxpayer is not
entitled to take the exemption, credit, or | ||||||
6 | deduction beginning on the sunset
date and thereafter. Except | ||||||
7 | as provided in subsection (b) of this Section, if If a | ||||||
8 | reasonable and appropriate sunset date is not
specified in the | ||||||
9 | Public Act that creates the exemption, credit, or deduction, a
| ||||||
10 | taxpayer shall not be entitled to take the exemption, credit, | ||||||
11 | or deduction
beginning 5 years after the effective date of the | ||||||
12 | Public Act creating the
exemption, credit, or deduction and | ||||||
13 | thereafter.
| ||||||
14 | (b) Notwithstanding the provisions of subsection (a) of | ||||||
15 | this Section, the sunset date of any exemption, credit, or | ||||||
16 | deduction that is scheduled to expire in 2011, 2012, or 2013 by | ||||||
17 | operation of this Section shall be extended by 5 years. | ||||||
18 | (Source: P.A. 88-660, eff. 9-16-94; 89-235, eff.
8-4-95.)
| ||||||
19 | Section 15-25. The Service Use Tax Act is amended by | ||||||
20 | changing Sections 3-10 and 3-75 as follows:
| ||||||
21 | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| ||||||
22 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
23 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
24 | the selling
price of tangible personal property transferred as |
| |||||||
| |||||||
1 | an incident to the sale
of service, but, for the purpose of | ||||||
2 | computing this tax, in no event shall
the selling price be less | ||||||
3 | than the cost price of the property to the
serviceman.
| ||||||
4 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
5 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
6 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
7 | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||||||
8 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
9 | tax imposed
by this Act applies to (i) 70% of the selling price | ||||||
10 | of property transferred
as an incident to the sale of service | ||||||
11 | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | ||||||
12 | of the selling price of
property transferred as an incident to | ||||||
13 | the sale of service on or after July
1, 2003 and on or before | ||||||
14 | December 31, 2018 2013 , and (iii)
100% of the selling price | ||||||
15 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
16 | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | ||||||
17 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
18 | 100% of the proceeds of sales of gasohol
made during that time.
| ||||||
19 | With respect to majority blended ethanol fuel, as defined | ||||||
20 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
21 | to the selling price of property transferred
as an incident to | ||||||
22 | the sale of service on or after July 1, 2003 and on or before
| ||||||
23 | December 31, 2018 2013 but applies to 100% of the selling price | ||||||
24 | thereafter.
| ||||||
25 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
26 | Act, with no less
than 1% and no
more than 10% biodiesel, the |
| |||||||
| |||||||
1 | tax imposed by this Act
applies to (i) 80% of the selling price | ||||||
2 | of property transferred as an incident
to the sale of service | ||||||
3 | on or after July 1, 2003 and on or before December 31, 2018
| ||||||
4 | 2013 and (ii) 100% of the proceeds of the selling price
| ||||||
5 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
6 | sales of biodiesel blends,
as
defined in the Use Tax Act, with | ||||||
7 | no less than 1% and no more than 10% biodiesel
is imposed at | ||||||
8 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
9 | 100% of the proceeds of sales of biodiesel
blends with no less | ||||||
10 | than 1% and no more than 10% biodiesel
made
during that time.
| ||||||
11 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
12 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
13 | more than 10% but no more than 99% biodiesel, the tax imposed | ||||||
14 | by this Act
does not apply to the proceeds of the selling price | ||||||
15 | of property transferred
as an incident to the sale of service | ||||||
16 | on or after July 1, 2003 and on or before
December 31, 2018 | ||||||
17 | 2013 but applies to 100% of the selling price thereafter.
| ||||||
18 | At the election of any registered serviceman made for each | ||||||
19 | fiscal year,
sales of service in which the aggregate annual | ||||||
20 | cost price of tangible
personal property transferred as an | ||||||
21 | incident to the sales of service is
less than 35%, or 75% in | ||||||
22 | the case of servicemen transferring prescription
drugs or | ||||||
23 | servicemen engaged in graphic arts production, of the aggregate
| ||||||
24 | annual total gross receipts from all sales of service, the tax | ||||||
25 | imposed by
this Act shall be based on the serviceman's cost | ||||||
26 | price of the tangible
personal property transferred as an |
| |||||||
| |||||||
1 | incident to the sale of those services.
| ||||||
2 | The tax shall be imposed at the rate of 1% on food prepared | ||||||
3 | for
immediate consumption and transferred incident to a sale of | ||||||
4 | service subject
to this Act or the Service Occupation Tax Act | ||||||
5 | by an entity licensed under
the Hospital Licensing Act, the | ||||||
6 | Nursing Home Care Act, the ID/DD Community Care Act, the | ||||||
7 | Specialized Mental Health Rehabilitation Act, or the
Child Care
| ||||||
8 | Act of 1969. The tax shall
also be imposed at the rate of 1% on | ||||||
9 | food for human consumption that is to be
consumed off the | ||||||
10 | premises where it is sold (other than alcoholic beverages,
soft | ||||||
11 | drinks, and food that has been prepared for immediate | ||||||
12 | consumption and is
not otherwise included in this paragraph) | ||||||
13 | and prescription and nonprescription
medicines, drugs, medical | ||||||
14 | appliances, modifications to a motor vehicle for the
purpose of | ||||||
15 | rendering it usable by a disabled person, and insulin, urine | ||||||
16 | testing
materials,
syringes, and needles used by diabetics, for
| ||||||
17 | human use. For the purposes of this Section, until September 1, | ||||||
18 | 2009: the term "soft drinks" means any
complete, finished, | ||||||
19 | ready-to-use, non-alcoholic drink, whether carbonated or
not, | ||||||
20 | including but not limited to soda water, cola, fruit juice, | ||||||
21 | vegetable
juice, carbonated water, and all other preparations | ||||||
22 | commonly known as soft
drinks of whatever kind or description | ||||||
23 | that are contained in any closed or
sealed bottle, can, carton, | ||||||
24 | or container, regardless of size; but "soft drinks"
does not | ||||||
25 | include coffee, tea, non-carbonated water, infant formula, | ||||||
26 | milk or
milk products as defined in the Grade A Pasteurized |
| |||||||
| |||||||
1 | Milk and Milk Products Act,
or drinks containing 50% or more | ||||||
2 | natural fruit or vegetable juice.
| ||||||
3 | Notwithstanding any other provisions of this
Act, | ||||||
4 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
5 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
6 | drinks" do not include beverages that contain milk or milk | ||||||
7 | products, soy, rice or similar milk substitutes, or greater | ||||||
8 | than 50% of vegetable or fruit juice by volume. | ||||||
9 | Until August 1, 2009, and notwithstanding any other | ||||||
10 | provisions of this Act, "food for human
consumption that is to | ||||||
11 | be consumed off the premises where it is sold" includes
all | ||||||
12 | food sold through a vending machine, except soft drinks and | ||||||
13 | food products
that are dispensed hot from a vending machine, | ||||||
14 | regardless of the location of
the vending machine. Beginning | ||||||
15 | August 1, 2009, and notwithstanding any other provisions of | ||||||
16 | this Act, "food for human consumption that is to be consumed | ||||||
17 | off the premises where it is sold" includes all food sold | ||||||
18 | through a vending machine, except soft drinks, candy, and food | ||||||
19 | products that are dispensed hot from a vending machine, | ||||||
20 | regardless of the location of the vending machine.
| ||||||
21 | Notwithstanding any other provisions of this
Act, | ||||||
22 | beginning September 1, 2009, "food for human consumption that | ||||||
23 | is to be consumed off the premises where
it is sold" does not | ||||||
24 | include candy. For purposes of this Section, "candy" means a | ||||||
25 | preparation of sugar, honey, or other natural or artificial | ||||||
26 | sweeteners in combination with chocolate, fruits, nuts or other |
| |||||||
| |||||||
1 | ingredients or flavorings in the form of bars, drops, or | ||||||
2 | pieces. "Candy" does not include any preparation that contains | ||||||
3 | flour or requires refrigeration. | ||||||
4 | Notwithstanding any other provisions of this
Act, | ||||||
5 | beginning September 1, 2009, "nonprescription medicines and | ||||||
6 | drugs" does not include grooming and hygiene products. For | ||||||
7 | purposes of this Section, "grooming and hygiene products" | ||||||
8 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
9 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
10 | lotions and screens, unless those products are available by | ||||||
11 | prescription only, regardless of whether the products meet the | ||||||
12 | definition of "over-the-counter-drugs". For the purposes of | ||||||
13 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
14 | use that contains a label that identifies the product as a drug | ||||||
15 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
16 | label includes: | ||||||
17 | (A) A "Drug Facts" panel; or | ||||||
18 | (B) A statement of the "active ingredient(s)" with a | ||||||
19 | list of those ingredients contained in the compound, | ||||||
20 | substance or preparation. | ||||||
21 | If the property that is acquired from a serviceman is | ||||||
22 | acquired outside
Illinois and used outside Illinois before | ||||||
23 | being brought to Illinois for use
here and is taxable under | ||||||
24 | this Act, the "selling price" on which the tax
is computed | ||||||
25 | shall be reduced by an amount that represents a reasonable
| ||||||
26 | allowance for depreciation for the period of prior out-of-state |
| |||||||
| |||||||
1 | use.
| ||||||
2 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | ||||||
3 | eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38, | ||||||
4 | eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
| ||||||
5 | (35 ILCS 110/3-75)
| ||||||
6 | Sec. 3-75. Sunset of exemptions, credits, and deductions. | ||||||
7 | (a) The application
of every exemption, credit, and | ||||||
8 | deduction against tax imposed by this Act that
becomes law | ||||||
9 | after the effective date of this amendatory Act of 1994 shall | ||||||
10 | be
limited by a reasonable and appropriate sunset date. A | ||||||
11 | taxpayer is not
entitled to take the exemption, credit, or | ||||||
12 | deduction beginning on the sunset
date and thereafter. Except | ||||||
13 | as provided in subsection (b) of this Section, if If a | ||||||
14 | reasonable and appropriate sunset date is not
specified in the | ||||||
15 | Public Act that creates the exemption, credit, or deduction, a
| ||||||
16 | taxpayer shall not be entitled to take the exemption, credit, | ||||||
17 | or deduction
beginning 5 years after the effective date of the | ||||||
18 | Public Act creating the
exemption, credit, or deduction and | ||||||
19 | thereafter.
| ||||||
20 | (b) Notwithstanding the provisions of subsection (a) of | ||||||
21 | this Section, the sunset date of any exemption, credit, or | ||||||
22 | deduction that is scheduled to expire in 2011, 2012, or 2013 by | ||||||
23 | operation of this Section shall be extended by 5 years. | ||||||
24 | (Source: P.A. 88-660, eff. 9-16-94; 89-235, eff.
8-4-95.)
|
| |||||||
| |||||||
1 | Section 15-30. The Service Occupation Tax Act is amended by | ||||||
2 | changing Sections 3-10 and 3-55 as follows:
| ||||||
3 | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| ||||||
4 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
5 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
6 | the "selling price",
as defined in Section 2 of the Service Use | ||||||
7 | Tax Act, of the tangible
personal property. For the purpose of | ||||||
8 | computing this tax, in no event
shall the "selling price" be | ||||||
9 | less than the cost price to the serviceman of
the tangible | ||||||
10 | personal property transferred. The selling price of each item
| ||||||
11 | of tangible personal property transferred as an incident of a | ||||||
12 | sale of
service may be shown as a distinct and separate item on | ||||||
13 | the serviceman's
billing to the service customer. If the | ||||||
14 | selling price is not so shown, the
selling price of the | ||||||
15 | tangible personal property is deemed to be 50% of the
| ||||||
16 | serviceman's entire billing to the service customer. When, | ||||||
17 | however, a
serviceman contracts to design, develop, and produce | ||||||
18 | special order machinery or
equipment, the tax imposed by this | ||||||
19 | Act shall be based on the serviceman's
cost price of the | ||||||
20 | tangible personal property transferred incident to the
| ||||||
21 | completion of the contract.
| ||||||
22 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
23 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
24 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
25 | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
|
| |||||||
| |||||||
1 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
2 | tax imposed
by this Act shall apply to (i) 70% of the cost | ||||||
3 | price of property
transferred as
an incident to the sale of | ||||||
4 | service on or after January 1, 1990, and before
July 1, 2003, | ||||||
5 | (ii) 80% of the selling price of property transferred as an
| ||||||
6 | incident to the sale of service on or after July
1, 2003 and on | ||||||
7 | or before December 31, 2018 2013 , and (iii) 100%
of
the cost | ||||||
8 | price
thereafter.
If, at any time, however, the tax under this | ||||||
9 | Act on sales of gasohol, as
defined in
the Use Tax Act, is | ||||||
10 | imposed at the rate of 1.25%, then the
tax imposed by this Act | ||||||
11 | applies to 100% of the proceeds of sales of gasohol
made during | ||||||
12 | that time.
| ||||||
13 | With respect to majority blended ethanol fuel, as defined | ||||||
14 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
15 | to the selling price of property transferred
as an incident to | ||||||
16 | the sale of service on or after July 1, 2003 and on or before
| ||||||
17 | December 31, 2018 2013 but applies to 100% of the selling price | ||||||
18 | thereafter.
| ||||||
19 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
20 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
21 | tax imposed by this Act
applies to (i) 80% of the selling price | ||||||
22 | of property transferred as an incident
to the sale of service | ||||||
23 | on or after July 1, 2003 and on or before December 31, 2018
| ||||||
24 | 2013 and (ii) 100% of the proceeds of the selling price
| ||||||
25 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
26 | sales of biodiesel blends,
as
defined in the Use Tax Act, with |
| |||||||
| |||||||
1 | no less than 1% and no more than 10% biodiesel
is imposed at | ||||||
2 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
3 | 100% of the proceeds of sales of biodiesel
blends with no less | ||||||
4 | than 1% and no more than 10% biodiesel
made
during that time.
| ||||||
5 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
6 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
7 | more than 10% but no more than 99% biodiesel material, the tax | ||||||
8 | imposed by this
Act
does not apply to the proceeds of the | ||||||
9 | selling price of property transferred
as an incident to the | ||||||
10 | sale of service on or after July 1, 2003 and on or before
| ||||||
11 | December 31, 2018 2013 but applies to 100% of the selling price | ||||||
12 | thereafter.
| ||||||
13 | At the election of any registered serviceman made for each | ||||||
14 | fiscal year,
sales of service in which the aggregate annual | ||||||
15 | cost price of tangible
personal property transferred as an | ||||||
16 | incident to the sales of service is
less than 35%, or 75% in | ||||||
17 | the case of servicemen transferring prescription
drugs or | ||||||
18 | servicemen engaged in graphic arts production, of the aggregate
| ||||||
19 | annual total gross receipts from all sales of service, the tax | ||||||
20 | imposed by
this Act shall be based on the serviceman's cost | ||||||
21 | price of the tangible
personal property transferred incident to | ||||||
22 | the sale of those services.
| ||||||
23 | The tax shall be imposed at the rate of 1% on food prepared | ||||||
24 | for
immediate consumption and transferred incident to a sale of | ||||||
25 | service subject
to this Act or the Service Occupation Tax Act | ||||||
26 | by an entity licensed under
the Hospital Licensing Act, the |
| |||||||
| |||||||
1 | Nursing Home Care Act, the ID/DD Community Care Act, the | ||||||
2 | Specialized Mental Health Rehabilitation Act, or the
Child Care | ||||||
3 | Act of 1969. The tax shall
also be imposed at the rate of 1% on | ||||||
4 | food for human consumption that is
to be consumed off the
| ||||||
5 | premises where it is sold (other than alcoholic beverages, soft | ||||||
6 | drinks, and
food that has been prepared for immediate | ||||||
7 | consumption and is not
otherwise included in this paragraph) | ||||||
8 | and prescription and
nonprescription medicines, drugs, medical | ||||||
9 | appliances, modifications to a motor
vehicle for the purpose of | ||||||
10 | rendering it usable by a disabled person, and
insulin, urine | ||||||
11 | testing materials, syringes, and needles used by diabetics, for
| ||||||
12 | human use. For the purposes of this Section, until September 1, | ||||||
13 | 2009: the term "soft drinks" means any
complete, finished, | ||||||
14 | ready-to-use, non-alcoholic drink, whether carbonated or
not, | ||||||
15 | including but not limited to soda water, cola, fruit juice, | ||||||
16 | vegetable
juice, carbonated water, and all other preparations | ||||||
17 | commonly known as soft
drinks of whatever kind or description | ||||||
18 | that are contained in any closed or
sealed can, carton, or | ||||||
19 | container, regardless of size; but "soft drinks" does not
| ||||||
20 | include coffee, tea, non-carbonated water, infant formula, | ||||||
21 | milk or milk
products as defined in the Grade A Pasteurized | ||||||
22 | Milk and Milk Products Act, or
drinks containing 50% or more | ||||||
23 | natural fruit or vegetable juice.
| ||||||
24 | Notwithstanding any other provisions of this
Act, | ||||||
25 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
26 | beverages that contain natural or artificial sweeteners. "Soft |
| |||||||
| |||||||
1 | drinks" do not include beverages that contain milk or milk | ||||||
2 | products, soy, rice or similar milk substitutes, or greater | ||||||
3 | than 50% of vegetable or fruit juice by volume. | ||||||
4 | Until August 1, 2009, and notwithstanding any other | ||||||
5 | provisions of this Act, "food for human consumption
that is to | ||||||
6 | be consumed off the premises where it is sold" includes all | ||||||
7 | food
sold through a vending machine, except soft drinks and | ||||||
8 | food products that are
dispensed hot from a vending machine, | ||||||
9 | regardless of the location of the vending
machine. Beginning | ||||||
10 | August 1, 2009, and notwithstanding any other provisions of | ||||||
11 | this Act, "food for human consumption that is to be consumed | ||||||
12 | off the premises where it is sold" includes all food sold | ||||||
13 | through a vending machine, except soft drinks, candy, and food | ||||||
14 | products that are dispensed hot from a vending machine, | ||||||
15 | regardless of the location of the vending machine.
| ||||||
16 | Notwithstanding any other provisions of this
Act, | ||||||
17 | beginning September 1, 2009, "food for human consumption that | ||||||
18 | is to be consumed off the premises where
it is sold" does not | ||||||
19 | include candy. For purposes of this Section, "candy" means a | ||||||
20 | preparation of sugar, honey, or other natural or artificial | ||||||
21 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
22 | ingredients or flavorings in the form of bars, drops, or | ||||||
23 | pieces. "Candy" does not include any preparation that contains | ||||||
24 | flour or requires refrigeration. | ||||||
25 | Notwithstanding any other provisions of this
Act, | ||||||
26 | beginning September 1, 2009, "nonprescription medicines and |
| |||||||
| |||||||
1 | drugs" does not include grooming and hygiene products. For | ||||||
2 | purposes of this Section, "grooming and hygiene products" | ||||||
3 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
4 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
5 | lotions and screens, unless those products are available by | ||||||
6 | prescription only, regardless of whether the products meet the | ||||||
7 | definition of "over-the-counter-drugs". For the purposes of | ||||||
8 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
9 | use that contains a label that identifies the product as a drug | ||||||
10 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
11 | label includes: | ||||||
12 | (A) A "Drug Facts" panel; or | ||||||
13 | (B) A statement of the "active ingredient(s)" with a | ||||||
14 | list of those ingredients contained in the compound, | ||||||
15 | substance or preparation. | ||||||
16 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | ||||||
17 | eff. 7-13-09; 96-339, eff. 7-1-10; 96-1000, eff. 7-2-10; 97-38, | ||||||
18 | eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-12-11.)
| ||||||
19 | (35 ILCS 115/3-55)
| ||||||
20 | Sec. 3-55. Sunset of exemptions, credits, and deductions. | ||||||
21 | (a) The application
of every exemption, credit, and | ||||||
22 | deduction against tax imposed by this Act that
becomes law | ||||||
23 | after the effective date of this amendatory Act of 1994 shall | ||||||
24 | be
limited by a reasonable and appropriate sunset date. A | ||||||
25 | taxpayer is not
entitled to take the exemption, credit, or |
| |||||||
| |||||||
1 | deduction beginning on the sunset
date and thereafter. Except | ||||||
2 | as provided in subsection (b) of this Section, if If a | ||||||
3 | reasonable and appropriate sunset date is not
specified in the | ||||||
4 | Public Act that creates the exemption, credit, or deduction, a
| ||||||
5 | taxpayer shall not be entitled to take the exemption, credit, | ||||||
6 | or deduction
beginning 5 years after the effective date of the | ||||||
7 | Public Act creating the
exemption, credit, or deduction and | ||||||
8 | thereafter.
| ||||||
9 | (b) Notwithstanding the provisions of subsection (a) of | ||||||
10 | this Section, the sunset date of any exemption, credit, or | ||||||
11 | deduction that is scheduled to expire in 2011, 2012, or 2013 by | ||||||
12 | operation of this Section shall be extended by 5 years. | ||||||
13 | (Source: P.A. 88-660, eff. 9-16-94.)
| ||||||
14 | Section 15-35. The Retailers' Occupation Tax Act is amended | ||||||
15 | by changing Sections 2-10 and 2-70 as follows:
| ||||||
16 | (35 ILCS 120/2-10)
| ||||||
17 | Sec. 2-10. Rate of tax. Unless otherwise provided in this | ||||||
18 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
19 | gross receipts
from sales of tangible personal property made in | ||||||
20 | the course of business.
| ||||||
21 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
22 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
23 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
24 | the Use Tax Act, the tax is
imposed at the rate of 1.25%.
|
| |||||||
| |||||||
1 | Beginning on August 6, 2010 through August 15, 2010, with | ||||||
2 | respect to sales tax holiday items as defined in Section 2-8 of | ||||||
3 | this Act, the
tax is imposed at the rate of 1.25%. | ||||||
4 | Within 14 days after the effective date of this amendatory | ||||||
5 | Act of the 91st
General Assembly, each retailer of motor fuel | ||||||
6 | and gasohol shall cause the
following notice to be posted in a | ||||||
7 | prominently visible place on each retail
dispensing device that | ||||||
8 | is used to dispense motor
fuel or gasohol in the State of | ||||||
9 | Illinois: "As of July 1, 2000, the State of
Illinois has | ||||||
10 | eliminated the State's share of sales tax on motor fuel and
| ||||||
11 | gasohol through December 31, 2000. The price on this pump | ||||||
12 | should reflect the
elimination of the tax." The notice shall be | ||||||
13 | printed in bold print on a sign
that is no smaller than 4 | ||||||
14 | inches by 8 inches. The sign shall be clearly
visible to | ||||||
15 | customers. Any retailer who fails to post or maintain a | ||||||
16 | required
sign through December 31, 2000 is guilty of a petty | ||||||
17 | offense for which the fine
shall be $500 per day per each | ||||||
18 | retail premises where a violation occurs.
| ||||||
19 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
20 | tax imposed
by this Act applies to (i) 70% of the proceeds of | ||||||
21 | sales made on or after
January 1, 1990, and before July 1, | ||||||
22 | 2003, (ii) 80% of the proceeds of
sales made on or after July | ||||||
23 | 1, 2003 and on or before December 31,
2018 2013 , and (iii) 100% | ||||||
24 | of the proceeds of sales
made thereafter.
If, at any time, | ||||||
25 | however, the tax under this Act on sales of gasohol, as
defined | ||||||
26 | in
the Use Tax Act, is imposed at the rate of 1.25%, then the
|
| |||||||
| |||||||
1 | tax imposed by this Act applies to 100% of the proceeds of | ||||||
2 | sales of gasohol
made during that time.
| ||||||
3 | With respect to majority blended ethanol fuel, as defined | ||||||
4 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
5 | to the proceeds of sales made on or after
July 1, 2003 and on or | ||||||
6 | before December 31, 2018 2013 but applies to 100% of the
| ||||||
7 | proceeds of sales made thereafter.
| ||||||
8 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
9 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
10 | tax imposed by this Act
applies to (i) 80% of the proceeds of | ||||||
11 | sales made on or after July 1, 2003
and on or before December | ||||||
12 | 31, 2018 2013 and (ii) 100% of the
proceeds of sales made | ||||||
13 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
14 | sales of biodiesel blends,
as
defined in the Use Tax Act, with | ||||||
15 | no less than 1% and no more than 10% biodiesel
is imposed at | ||||||
16 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
17 | 100% of the proceeds of sales of biodiesel
blends with no less | ||||||
18 | than 1% and no more than 10% biodiesel
made
during that time.
| ||||||
19 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
20 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
21 | more than 10% but no more than 99% biodiesel, the tax imposed | ||||||
22 | by this Act
does not apply to the proceeds of sales made on or | ||||||
23 | after July 1, 2003
and on or before December 31, 2018 2013 but | ||||||
24 | applies to 100% of the
proceeds of sales made thereafter.
| ||||||
25 | With respect to food for human consumption that is to be | ||||||
26 | consumed off the
premises where it is sold (other than |
| |||||||
| |||||||
1 | alcoholic beverages, soft drinks, and
food that has been | ||||||
2 | prepared for immediate consumption) and prescription and
| ||||||
3 | nonprescription medicines, drugs, medical appliances, | ||||||
4 | modifications to a motor
vehicle for the purpose of rendering | ||||||
5 | it usable by a disabled person, and
insulin, urine testing | ||||||
6 | materials, syringes, and needles used by diabetics, for
human | ||||||
7 | use, the tax is imposed at the rate of 1%. For the purposes of | ||||||
8 | this
Section, until September 1, 2009: the term "soft drinks" | ||||||
9 | means any complete, finished, ready-to-use,
non-alcoholic | ||||||
10 | drink, whether carbonated or not, including but not limited to
| ||||||
11 | soda water, cola, fruit juice, vegetable juice, carbonated | ||||||
12 | water, and all other
preparations commonly known as soft drinks | ||||||
13 | of whatever kind or description that
are contained in any | ||||||
14 | closed or sealed bottle, can, carton, or container,
regardless | ||||||
15 | of size; but "soft drinks" does not include coffee, tea, | ||||||
16 | non-carbonated
water, infant formula, milk or milk products as | ||||||
17 | defined in the Grade A
Pasteurized Milk and Milk Products Act, | ||||||
18 | or drinks containing 50% or more
natural fruit or vegetable | ||||||
19 | juice.
| ||||||
20 | Notwithstanding any other provisions of this
Act, | ||||||
21 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
22 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
23 | drinks" do not include beverages that contain milk or milk | ||||||
24 | products, soy, rice or similar milk substitutes, or greater | ||||||
25 | than 50% of vegetable or fruit juice by volume. | ||||||
26 | Until August 1, 2009, and notwithstanding any other |
| |||||||
| |||||||
1 | provisions of this
Act, "food for human consumption that is to | ||||||
2 | be consumed off the premises where
it is sold" includes all | ||||||
3 | food sold through a vending machine, except soft
drinks and | ||||||
4 | food products that are dispensed hot from a vending machine,
| ||||||
5 | regardless of the location of the vending machine. Beginning | ||||||
6 | August 1, 2009, and notwithstanding any other provisions of | ||||||
7 | this Act, "food for human consumption that is to be consumed | ||||||
8 | off the premises where it is sold" includes all food sold | ||||||
9 | through a vending machine, except soft drinks, candy, and food | ||||||
10 | products that are dispensed hot from a vending machine, | ||||||
11 | regardless of the location of the vending machine.
| ||||||
12 | Notwithstanding any other provisions of this
Act, | ||||||
13 | beginning September 1, 2009, "food for human consumption that | ||||||
14 | is to be consumed off the premises where
it is sold" does not | ||||||
15 | include candy. For purposes of this Section, "candy" means a | ||||||
16 | preparation of sugar, honey, or other natural or artificial | ||||||
17 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
18 | ingredients or flavorings in the form of bars, drops, or | ||||||
19 | pieces. "Candy" does not include any preparation that contains | ||||||
20 | flour or requires refrigeration. | ||||||
21 | Notwithstanding any other provisions of this
Act, | ||||||
22 | beginning September 1, 2009, "nonprescription medicines and | ||||||
23 | drugs" does not include grooming and hygiene products. For | ||||||
24 | purposes of this Section, "grooming and hygiene products" | ||||||
25 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
26 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan |
| |||||||
| |||||||
1 | lotions and screens, unless those products are available by | ||||||
2 | prescription only, regardless of whether the products meet the | ||||||
3 | definition of "over-the-counter-drugs". For the purposes of | ||||||
4 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
5 | use that contains a label that identifies the product as a drug | ||||||
6 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
7 | label includes: | ||||||
8 | (A) A "Drug Facts" panel; or | ||||||
9 | (B) A statement of the "active ingredient(s)" with a | ||||||
10 | list of those ingredients contained in the compound, | ||||||
11 | substance or preparation.
| ||||||
12 | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38, | ||||||
13 | eff. 7-13-09; 96-1000, eff. 7-2-10; 96-1012, eff. 7-7-10.)
| ||||||
14 | (35 ILCS 120/2-70)
| ||||||
15 | Sec. 2-70. Sunset of exemptions, credits, and deductions. | ||||||
16 | (a) The application
of every exemption, credit, and | ||||||
17 | deduction against tax imposed by this Act that
becomes law | ||||||
18 | after the effective date of this amendatory Act of 1994 shall | ||||||
19 | be
limited by a reasonable and appropriate sunset date. A | ||||||
20 | taxpayer is not
entitled to take the exemption, credit, or | ||||||
21 | deduction beginning on the sunset
date and thereafter. Except | ||||||
22 | as provided in subsection (b) of this Section, if If a | ||||||
23 | reasonable and appropriate sunset date is not
specified in the | ||||||
24 | Public Act that creates the exemption, credit, or deduction, a
| ||||||
25 | taxpayer shall not be entitled to take the exemption, credit, |
| |||||||
| |||||||
1 | or deduction
beginning 5 years after the effective date of the | ||||||
2 | Public Act creating the
exemption, credit, or deduction and | ||||||
3 | thereafter.
| ||||||
4 | (b) Notwithstanding the provisions of subsection (a) of | ||||||
5 | this Section, the sunset date of any exemption, credit, or | ||||||
6 | deduction that is scheduled to expire in 2011, 2012, or 2013 by | ||||||
7 | operation of this Section shall be extended by 5 years. | ||||||
8 | (Source: P.A. 88-660, eff. 9-16-94.)
| ||||||
9 | Section 15-40. The Illinois Estate and Generation-Skipping | ||||||
10 | Transfer Tax Act is amended by changing Section 2 as follows:
| ||||||
11 | (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
| ||||||
12 | Sec. 2. Definitions.
| ||||||
13 | "Federal estate tax" means the tax due to the United States | ||||||
14 | with respect
to a taxable transfer under Chapter 11 of the | ||||||
15 | Internal Revenue Code.
| ||||||
16 | "Federal generation-skipping transfer tax" means the tax | ||||||
17 | due to the
United States with respect to a taxable transfer | ||||||
18 | under Chapter 13 of the
Internal Revenue Code.
| ||||||
19 | "Federal return" means the federal estate tax return with | ||||||
20 | respect to the
federal estate tax and means the federal | ||||||
21 | generation-skipping transfer tax
return
with respect to the | ||||||
22 | federal generation-skipping transfer tax.
| ||||||
23 | "Federal transfer tax" means the federal estate tax or the | ||||||
24 | federal
generation-skipping transfer tax.
|
| |||||||
| |||||||
1 | "Illinois estate tax" means the tax due to this State with | ||||||
2 | respect to a
taxable transfer.
| ||||||
3 | "Illinois generation-skipping transfer tax" means the tax | ||||||
4 | due to this State
with respect to a taxable transfer that gives | ||||||
5 | rise to a federal
generation-skipping transfer tax.
| ||||||
6 | "Illinois transfer tax" means the Illinois estate tax or | ||||||
7 | the Illinois
generation-skipping transfer tax.
| ||||||
8 | "Internal Revenue Code" means, unless otherwise provided, | ||||||
9 | the Internal
Revenue Code of 1986, as
amended from time to | ||||||
10 | time.
| ||||||
11 | "Non-resident trust" means a trust that is not a resident | ||||||
12 | of this State
for purposes of the Illinois Income Tax Act, as | ||||||
13 | amended from time to time.
| ||||||
14 | "Person" means and includes any individual, trust, estate, | ||||||
15 | partnership,
association, company or corporation.
| ||||||
16 | "Qualified heir" means a qualified heir as defined in | ||||||
17 | Section 2032A(e)(1)
of the Internal Revenue Code.
| ||||||
18 | "Resident trust" means a trust that is a resident of this | ||||||
19 | State for
purposes of the Illinois Income Tax Act, as amended | ||||||
20 | from time to time.
| ||||||
21 | "State" means any state, territory or possession of the | ||||||
22 | United States and
the District of Columbia.
| ||||||
23 | "State tax credit" means:
| ||||||
24 | (a) For persons dying on or after January 1, 2003 and
| ||||||
25 | through December 31, 2005, an amount
equal
to the full credit | ||||||
26 | calculable under Section 2011 or Section 2604 of the
Internal |
| |||||||
| |||||||
1 | Revenue
Code as the credit would have been computed and allowed | ||||||
2 | under the Internal
Revenue
Code as in effect on December 31, | ||||||
3 | 2001, without the reduction in the State
Death Tax
Credit as | ||||||
4 | provided in Section 2011(b)(2) or the termination of the State | ||||||
5 | Death
Tax Credit
as provided in Section 2011(f) as enacted by | ||||||
6 | the Economic Growth and Tax Relief
Reconciliation Act of 2001, | ||||||
7 | but recognizing the increased applicable exclusion
amount
| ||||||
8 | through December 31, 2005.
| ||||||
9 | (b) For persons dying after December 31, 2005 and on or | ||||||
10 | before December 31,
2009, and for persons dying after December | ||||||
11 | 31, 2010, an amount equal to the full
credit
calculable under | ||||||
12 | Section 2011 or 2604 of the Internal Revenue Code as the
credit | ||||||
13 | would
have been computed and allowed under the Internal Revenue | ||||||
14 | Code as in effect on
December 31, 2001, without the reduction | ||||||
15 | in the State Death Tax Credit as
provided in
Section 2011(b)(2) | ||||||
16 | or the termination of the State Death Tax Credit as provided
in
| ||||||
17 | Section 2011(f) as enacted by the Economic Growth and Tax | ||||||
18 | Relief Reconciliation
Act of
2001, but recognizing the | ||||||
19 | exclusion amount of only (i) $2,000,000 for persons dying prior | ||||||
20 | to January 1, 2012, (ii) $3,000,000 for persons dying on or | ||||||
21 | after January 1, 2012 and prior to January 1, 2013, and (iii) | ||||||
22 | $3,500,000 for persons dying on or after January 1, 2013 , and | ||||||
23 | with reduction to the adjusted taxable estate for any qualified | ||||||
24 | terminable interest property election as defined in subsection | ||||||
25 | (b-1) of this Section.
| ||||||
26 | (b-1) The person required to file the Illinois return may |
| |||||||
| |||||||
1 | elect on a timely filed Illinois return a marital deduction for | ||||||
2 | qualified terminable interest property under Section | ||||||
3 | 2056(b)(7) of the Internal Revenue Code for purposes of the | ||||||
4 | Illinois estate tax that is separate and independent of any | ||||||
5 | qualified terminable interest property election for federal | ||||||
6 | estate tax purposes. For purposes of the Illinois estate tax, | ||||||
7 | the inclusion of property in the gross estate of a surviving | ||||||
8 | spouse is the same as under Section 2044 of the Internal | ||||||
9 | Revenue Code. | ||||||
10 | In the case of any trust for which a State or federal | ||||||
11 | qualified terminable interest property election is made, the | ||||||
12 | trustee may not retain non-income producing assets for more | ||||||
13 | than a reasonable amount of time without the consent of the | ||||||
14 | surviving spouse.
| ||||||
15 | "Taxable transfer" means an event that gives rise to a | ||||||
16 | state tax credit,
including any credit as a result of the | ||||||
17 | imposition of an
additional tax under Section 2032A(c) of the | ||||||
18 | Internal Revenue Code.
| ||||||
19 | "Transferee" means a transferee within the meaning of | ||||||
20 | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | ||||||
21 | Code.
| ||||||
22 | "Transferred property" means:
| ||||||
23 | (1) With respect to a taxable transfer occurring at the | ||||||
24 | death of an
individual, the
deceased individual's gross | ||||||
25 | estate as defined in Section 2031 of the
Internal Revenue | ||||||
26 | Code.
|
| |||||||
| |||||||
1 | (2) With respect to a taxable transfer occurring as a | ||||||
2 | result of a
taxable termination as defined in Section | ||||||
3 | 2612(a) of the Internal Revenue Code,
the taxable amount | ||||||
4 | determined under Section 2622(a) of the Internal Revenue
| ||||||
5 | Code.
| ||||||
6 | (3) With respect to a taxable transfer occurring as a | ||||||
7 | result of a
taxable distribution as defined in Section | ||||||
8 | 2612(b) of the Internal Revenue Code,
the taxable amount | ||||||
9 | determined under Section 2621(a) of the Internal Revenue
| ||||||
10 | Code.
| ||||||
11 | (4) With respect to an event which causes the | ||||||
12 | imposition of an
additional estate tax under Section | ||||||
13 | 2032A(c) of the Internal Revenue Code,
the
qualified real | ||||||
14 | property that was disposed of or which ceased to be used | ||||||
15 | for
the qualified use, within the meaning of Section | ||||||
16 | 2032A(c)(1) of the Internal
Revenue Code.
| ||||||
17 | "Trust" includes a trust as defined in Section 2652(b)(1) | ||||||
18 | of the Internal
Revenue Code.
| ||||||
19 | (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11.)".
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