Bill Text: IL HB2557 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Creates the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive (RESTAURANTS) Act. Creates the Illinois Restaurant Revitalization Fund. Provides that the State Treasurer and certain units of local government shall award grants from the Fund to eligible entities. Provides that the term "eligible entity" means a restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, or other similar place of business, subject to certain limitations. Amends the Illinois Income Tax Act and the State Finance Act to make conforming changes. Effective immediately.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB2557 Detail]
Download: Illinois-2021-HB2557-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Real | ||||||||||||||||||||||||||||
5 | Economic Support That Acknowledges Unique Restaurant | ||||||||||||||||||||||||||||
6 | Assistance Needed To Survive (RESTAURANTS) Act.
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7 | Section 5. Definitions. As used in this Act: | ||||||||||||||||||||||||||||
8 | "Covered period" means the period beginning on February | ||||||||||||||||||||||||||||
9 | 15, 2020, and ending on December 31, 2020. | ||||||||||||||||||||||||||||
10 | "Eligible entity" means a restaurant, food stand, food | ||||||||||||||||||||||||||||
11 | truck, food cart, caterer, saloon, inn, tavern, bar, lounge, | ||||||||||||||||||||||||||||
12 | or other similar place of business that is resident and | ||||||||||||||||||||||||||||
13 | domiciled in the State of Illinois, and owned and operated by | ||||||||||||||||||||||||||||
14 | residents of the State of Illinois in which the public or | ||||||||||||||||||||||||||||
15 | patrons assemble for the primary purpose of being served food | ||||||||||||||||||||||||||||
16 | or drink and that, as of March 13, 2020, is not part of a chain | ||||||||||||||||||||||||||||
17 | or franchise with not less than 20 locations doing business | ||||||||||||||||||||||||||||
18 | under the same name, regardless of the type of ownership of the | ||||||||||||||||||||||||||||
19 | locations. "Eligible entity" does not include: | ||||||||||||||||||||||||||||
20 | (1) an entity that is publicly traded, including a | ||||||||||||||||||||||||||||
21 | subsidiary or affiliate thereof; or | ||||||||||||||||||||||||||||
22 | (2) an entity that is part of a State or local | ||||||||||||||||||||||||||||
23 | government facility, not including an airport.
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1 | "Fund" means the Illinois Restaurant Revitalization Fund | ||||||
2 | established under this Act. | ||||||
3 | "Payroll costs" has the meaning given the term in Section | ||||||
4 | 7(a)(36)(A) of the federal Small Business Act, 15 U.S.C. | ||||||
5 | 626(a)(36)(A). | ||||||
6 | "Treasurer" means the State Treasurer.
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7 | Section 10. Illinois Restaurant Revitalization Fund. | ||||||
8 | (a) The Illinois Restaurant Revitalization Fund is hereby | ||||||
9 | created as a special fund in the State treasury. | ||||||
10 | (b) On July 1, 2021, the Comptroller shall order | ||||||
11 | transferred and the Treasurer shall transfer from the General | ||||||
12 | Revenue Fund to the Illinois Restaurant Revitalization Fund | ||||||
13 | the amount of $20,000,000. | ||||||
14 | (c) In addition, beginning on August 15, 2021 and through | ||||||
15 | April 15, 2022, no later than the fifteenth day of each month, | ||||||
16 | the Department of Revenue shall certify to the State | ||||||
17 | Comptroller and the State Treasurer the amount received from | ||||||
18 | an eligible entity during the previous month as taxes under | ||||||
19 | the Use Tax Act, the Service Use Tax Act, the Service | ||||||
20 | Occupation Tax Act, the Retailers' Occupation Tax Act, | ||||||
21 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
22 | Tax Act, and the Liquor Control Act of 1934. In addition, | ||||||
23 | beginning on August 15, 2021 and through April 15, 2022, no | ||||||
24 | later than the fifteenth day of each month, the Secretary of | ||||||
25 | State shall certify to the State Comptroller and the State |
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1 | Treasurer the amount received during the previous month as | ||||||
2 | license fees or franchise taxes under the Business Corporation | ||||||
3 | Act of 1983. As soon as possible after receiving the | ||||||
4 | certifications under this subsection, the Comptroller shall | ||||||
5 | order transferred and the Treasurer shall transfer the | ||||||
6 | certified amount from the General Revenue Fund to the Illinois | ||||||
7 | Restaurant Revitalization Fund. | ||||||
8 | (d) The Treasurer shall use amounts in the Fund to make | ||||||
9 | grants described in Section 15. | ||||||
10 | (e) Any amounts that are unobligated and remaining in the | ||||||
11 | Fund on May 1, 2022 shall be transferred from the Illinois | ||||||
12 | Restaurant Revitalization Fund to the General Revenue Fund.
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13 | Section 15. Illinois restaurant revitalization grants. | ||||||
14 | (a) The Treasurer shall award grants to eligible entities | ||||||
15 | in the order in which the application is received by the | ||||||
16 | Treasurer, subject to counties and units of local government | ||||||
17 | grant authority. | ||||||
18 | (b) The Treasurer shall register each grant awarded under | ||||||
19 | this Section using the employer identification number of the | ||||||
20 | eligible entity. | ||||||
21 | (c) An eligible entity desiring a grant under this Section | ||||||
22 | shall submit to the Treasurer an application at such time, in | ||||||
23 | such manner, and containing such information as the Treasurer | ||||||
24 | may require. | ||||||
25 | (d) An eligible entity applying for a grant under this |
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1 | Section shall make a good faith certification that: | ||||||
2 | (1) the uncertainty of current economic conditions | ||||||
3 | makes necessary the grant request to support the ongoing | ||||||
4 | operations of the eligible entity; | ||||||
5 | (2) funds will be used to retain workers, maintain | ||||||
6 | payroll, and for other allowable expenses; | ||||||
7 | (3) that the eligible entity does not have an | ||||||
8 | application pending for a grant under subsection (a)(36) | ||||||
9 | or (b)(2) of section 7 of the federal Small Business Act | ||||||
10 | (15 U.S.C. 636) for the same purpose and duplicative of | ||||||
11 | amounts applied for or received under this Section; | ||||||
12 | (4) during the covered period, the eligible entity has | ||||||
13 | not received amounts under subsection (a)(36) or (b)(2) of | ||||||
14 | section 7 of the federal Small Business Act (15 U.S.C. | ||||||
15 | 636) for the same purpose and duplicative of amounts | ||||||
16 | applied for or received under this Section; and | ||||||
17 | (5) during the covered period, the eligible entity has | ||||||
18 | not received amounts under Section 30 of this Act from a | ||||||
19 | unit of local government for the same purpose and | ||||||
20 | duplicative of amounts applied for or received under this | ||||||
21 | Section. | ||||||
22 | (e) An eligible entity applying for a grant under this | ||||||
23 | Section is not ineligible for a grant if the eligible entity is | ||||||
24 | able to document: | ||||||
25 | (1) an inability to rehire individuals who were | ||||||
26 | employees of the eligible entity on February 15, 2020; and |
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1 | (2) an inability to hire similarly qualified employees | ||||||
2 | for unfilled positions on or before December 31, 2021. | ||||||
3 | (f) During the initial 14-day period in which the | ||||||
4 | Treasurer awards grants under this Section, the Treasurer | ||||||
5 | shall prioritize awarding grants to: | ||||||
6 | (1) eligible entities in communities that have had the | ||||||
7 | highest proportions of revenue lost because of COVID-19 or | ||||||
8 | the longest times of shutdown because of COVID-19; | ||||||
9 | (2) eligible entities that had small capacity levels | ||||||
10 | (100 or less); | ||||||
11 | (3) eligible entities (A) with annual revenues in 2020 | ||||||
12 | of less than $1,000,000 or (B) that experienced a revenue | ||||||
13 | loss in 2020 that was in excess of 20% of 2019 revenues; | ||||||
14 | and | ||||||
15 | (4) eligible entities in communities or counties with | ||||||
16 | populations in excess of 500,000 if the zip codes where | ||||||
17 | the entity is located had a median household income of 75% | ||||||
18 | or less of the median household income of the State of | ||||||
19 | Illinois for calendar year 2020. | ||||||
20 | (f) An eligible entity shall submit to the Treasurer such | ||||||
21 | revenue verification documentation as the Treasurer may | ||||||
22 | require to determine the amount of a grant under this Section. | ||||||
23 | (g) An eligible entity may not receive more than one grant | ||||||
24 | under this Act.
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25 | Section 20. Grant amount. The amount of a grant made to an |
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1 | eligible entity under this Act shall be based on the | ||||||
2 | difference in revenues or estimated revenues of the eligible | ||||||
3 | entity during a calendar quarter in 2020 as compared to the | ||||||
4 | same calendar quarter in 2019. If the total grant request | ||||||
5 | exceeds the amounts available in the Fund, the Treasurer may, | ||||||
6 | after providing notice and opportunity for 5 business days of | ||||||
7 | comment by members of the public, reduce proposed grant | ||||||
8 | amounts in excess of $100,000 by 50%, reduce proposed grant | ||||||
9 | amounts in excess of $200,000 by 60%, and reduce proposed | ||||||
10 | grant amounts in excess of $300,000 by 80%. | ||||||
11 | Any amount of a grant made under this Act to an eligible | ||||||
12 | entity based on estimated revenues in a calendar quarter in | ||||||
13 | 2020 that is above the actual revenues of the eligible entity | ||||||
14 | during that calendar quarter shall be converted to a loan that | ||||||
15 | has an interest rate of 1% and a maturity date of 10 years | ||||||
16 | beginning on January 1, 2021. | ||||||
17 | If an eligible entity has, at the time of application for a | ||||||
18 | grant under this Act, received an emergency grant under | ||||||
19 | section 1110(e) of the CARES Act (Public Law 116–136) or loan | ||||||
20 | forgiveness under Section 1106 of such Act related to expenses | ||||||
21 | incurred during the covered period, the maximum amount of a | ||||||
22 | grant awarded to the eligible entity under this Act shall be | ||||||
23 | reduced by the amount of funds expended by or forgiven for the | ||||||
24 | eligible entity for those expenses using amounts received | ||||||
25 | under such Section 1110(e) or forgiven under such Section | ||||||
26 | 1106. |
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1 | If an eligible entity that receives a grant under this Act | ||||||
2 | permanently ceases operations on or before December 31, 2021, | ||||||
3 | the eligible entity shall return to the Treasury any funds | ||||||
4 | that the eligible entity did not use for the allowable | ||||||
5 | expenses
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6 | Section 25. Use of funds. During the covered period, an | ||||||
7 | eligible entity that receives a grant under this Act may use | ||||||
8 | the grant funds for: | ||||||
9 | (1) payroll costs; | ||||||
10 | (2) payments of principal or interest on any mortgage | ||||||
11 | obligation; | ||||||
12 | (3) rent payments, including rent under a lease | ||||||
13 | agreement;
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14 | (4) utilities;
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15 | (5) maintenance, including construction to accommodate | ||||||
16 | outdoor seating; | ||||||
17 | (6) supplies, including protective equipment and | ||||||
18 | cleaning materials;
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19 | (7) food and beverage; | ||||||
20 | (8) debt obligations to suppliers that were incurred | ||||||
21 | before the covered period; and | ||||||
22 | (9) any other expenses that the Treasurer determines | ||||||
23 | to be essential to maintaining the eligible entity.
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24 | Section 30. County and municipal distribution in lieu of |
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1 | Treasurer distribution. | ||||||
2 | (a) Any county with a population in excess of 500,000, or a | ||||||
3 | unit of local government (whether home rule or non-home rule) | ||||||
4 | with a population in excess of 20,000, may petition the | ||||||
5 | Treasurer to secure grant funds under the Illinois Restaurant | ||||||
6 | Revitalization Fund and to distribute the funds within their | ||||||
7 | jurisdictions in accordance with the same rules applicable to | ||||||
8 | the Treasurer. The Treasurer shall provide an automatic 2 to 1 | ||||||
9 | matching grant to such County or unit of local government, | ||||||
10 | provided that such county or municipal government must pledge | ||||||
11 | at least 25% of their local revenues from use and occupation | ||||||
12 | taxes; liquor taxes; or other sources associated with covered | ||||||
13 | entities under this Section towards their local Illinois | ||||||
14 | Restaurant Revitalization Fund. | ||||||
15 | (b) Any unit of local government within a county that | ||||||
16 | seeks to self-administer a local Illinois Restaurant | ||||||
17 | Revitalization Fund shall automatically be granted a | ||||||
18 | proportionate share, per capita, of the county funds | ||||||
19 | available, less 10%. The county auditor shall have the | ||||||
20 | authority to audit a local Illinois Restaurant Revitalization | ||||||
21 | Fund to ensure the grants are awarded in substantial | ||||||
22 | compliance with this Act. | ||||||
23 | (c) All applications for, and grants awarded (with the | ||||||
24 | exception of federal tax ID numbers, or other information that | ||||||
25 | would normally be withheld under the Freedom of Information | ||||||
26 | Act) shall be public records, and open to inspection by |
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1 | members of the public.
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2 | Section 35. Rulemaking. The Treasurer may adopt rules for | ||||||
3 | the implementation of this Act.
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4 | Section 40. Repeal. This Act is repealed on July 1, 2022.
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5 | Section 900. The Illinois Income Tax Act is amended by | ||||||
6 | changing Section 203 as follows:
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7 | (35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||||||
8 | Sec. 203. Base income defined. | ||||||
9 | (a) Individuals. | ||||||
10 | (1) In general. In the case of an individual, base | ||||||
11 | income means an
amount equal to the taxpayer's adjusted | ||||||
12 | gross income for the taxable
year as modified by paragraph | ||||||
13 | (2). | ||||||
14 | (2) Modifications. The adjusted gross income referred | ||||||
15 | to in
paragraph (1) shall be modified by adding thereto | ||||||
16 | the sum of the
following amounts: | ||||||
17 | (A) An amount equal to all amounts paid or accrued | ||||||
18 | to the taxpayer
as interest or dividends during the | ||||||
19 | taxable year to the extent excluded
from gross income | ||||||
20 | in the computation of adjusted gross income, except | ||||||
21 | stock
dividends of qualified public utilities | ||||||
22 | described in Section 305(e) of the
Internal Revenue |
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1 | Code; | ||||||
2 | (B) An amount equal to the amount of tax imposed by | ||||||
3 | this Act to the
extent deducted from gross income in | ||||||
4 | the computation of adjusted gross
income for the | ||||||
5 | taxable year; | ||||||
6 | (C) An amount equal to the amount received during | ||||||
7 | the taxable year
as a recovery or refund of real | ||||||
8 | property taxes paid with respect to the
taxpayer's | ||||||
9 | principal residence under the Revenue Act of
1939 and | ||||||
10 | for which a deduction was previously taken under | ||||||
11 | subparagraph (L) of
this paragraph (2) prior to July | ||||||
12 | 1, 1991, the retrospective application date of
Article | ||||||
13 | 4 of Public Act 87-17. In the case of multi-unit or | ||||||
14 | multi-use
structures and farm dwellings, the taxes on | ||||||
15 | the taxpayer's principal residence
shall be that | ||||||
16 | portion of the total taxes for the entire property | ||||||
17 | which is
attributable to such principal residence; | ||||||
18 | (D) An amount equal to the amount of the capital | ||||||
19 | gain deduction
allowable under the Internal Revenue | ||||||
20 | Code, to the extent deducted from gross
income in the | ||||||
21 | computation of adjusted gross income; | ||||||
22 | (D-5) An amount, to the extent not included in | ||||||
23 | adjusted gross income,
equal to the amount of money | ||||||
24 | withdrawn by the taxpayer in the taxable year from
a | ||||||
25 | medical care savings account and the interest earned | ||||||
26 | on the account in the
taxable year of a withdrawal |
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1 | pursuant to subsection (b) of Section 20 of the
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2 | Medical Care Savings Account Act or subsection (b) of | ||||||
3 | Section 20 of the
Medical Care Savings Account Act of | ||||||
4 | 2000; | ||||||
5 | (D-10) For taxable years ending after December 31, | ||||||
6 | 1997, an
amount equal to any eligible remediation | ||||||
7 | costs that the individual
deducted in computing | ||||||
8 | adjusted gross income and for which the
individual | ||||||
9 | claims a credit under subsection (l) of Section 201; | ||||||
10 | (D-15) For taxable years 2001 and thereafter, an | ||||||
11 | amount equal to the
bonus depreciation deduction taken | ||||||
12 | on the taxpayer's federal income tax return for the | ||||||
13 | taxable
year under subsection (k) of Section 168 of | ||||||
14 | the Internal Revenue Code; | ||||||
15 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
16 | or otherwise disposes of property for which the | ||||||
17 | taxpayer was required in any taxable year to
make an | ||||||
18 | addition modification under subparagraph (D-15), then | ||||||
19 | an amount equal
to the aggregate amount of the | ||||||
20 | deductions taken in all taxable
years under | ||||||
21 | subparagraph (Z) with respect to that property. | ||||||
22 | If the taxpayer continues to own property through | ||||||
23 | the last day of the last tax year for which the | ||||||
24 | taxpayer may claim a depreciation deduction for | ||||||
25 | federal income tax purposes and for which the taxpayer | ||||||
26 | was allowed in any taxable year to make a subtraction |
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1 | modification under subparagraph (Z), then an amount | ||||||
2 | equal to that subtraction modification.
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3 | The taxpayer is required to make the addition | ||||||
4 | modification under this
subparagraph
only once with | ||||||
5 | respect to any one piece of property; | ||||||
6 | (D-17) An amount equal to the amount otherwise | ||||||
7 | allowed as a deduction in computing base income for | ||||||
8 | interest paid, accrued, or incurred, directly or | ||||||
9 | indirectly, (i) for taxable years ending on or after | ||||||
10 | December 31, 2004, to a foreign person who would be a | ||||||
11 | member of the same unitary business group but for the | ||||||
12 | fact that foreign person's business activity outside | ||||||
13 | the United States is 80% or more of the foreign | ||||||
14 | person's total business activity and (ii) for taxable | ||||||
15 | years ending on or after December 31, 2008, to a person | ||||||
16 | who would be a member of the same unitary business | ||||||
17 | group but for the fact that the person is prohibited | ||||||
18 | under Section 1501(a)(27) from being included in the | ||||||
19 | unitary business group because he or she is ordinarily | ||||||
20 | required to apportion business income under different | ||||||
21 | subsections of Section 304. The addition modification | ||||||
22 | required by this subparagraph shall be reduced to the | ||||||
23 | extent that dividends were included in base income of | ||||||
24 | the unitary group for the same taxable year and | ||||||
25 | received by the taxpayer or by a member of the | ||||||
26 | taxpayer's unitary business group (including amounts |
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1 | included in gross income under Sections 951 through | ||||||
2 | 964 of the Internal Revenue Code and amounts included | ||||||
3 | in gross income under Section 78 of the Internal | ||||||
4 | Revenue Code) with respect to the stock of the same | ||||||
5 | person to whom the interest was paid, accrued, or | ||||||
6 | incurred. | ||||||
7 | This paragraph shall not apply to the following:
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8 | (i) an item of interest paid, accrued, or | ||||||
9 | incurred, directly or indirectly, to a person who | ||||||
10 | is subject in a foreign country or state, other | ||||||
11 | than a state which requires mandatory unitary | ||||||
12 | reporting, to a tax on or measured by net income | ||||||
13 | with respect to such interest; or | ||||||
14 | (ii) an item of interest paid, accrued, or | ||||||
15 | incurred, directly or indirectly, to a person if | ||||||
16 | the taxpayer can establish, based on a | ||||||
17 | preponderance of the evidence, both of the | ||||||
18 | following: | ||||||
19 | (a) the person, during the same taxable | ||||||
20 | year, paid, accrued, or incurred, the interest | ||||||
21 | to a person that is not a related member, and | ||||||
22 | (b) the transaction giving rise to the | ||||||
23 | interest expense between the taxpayer and the | ||||||
24 | person did not have as a principal purpose the | ||||||
25 | avoidance of Illinois income tax, and is paid | ||||||
26 | pursuant to a contract or agreement that |
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1 | reflects an arm's-length interest rate and | ||||||
2 | terms; or
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3 | (iii) the taxpayer can establish, based on | ||||||
4 | clear and convincing evidence, that the interest | ||||||
5 | paid, accrued, or incurred relates to a contract | ||||||
6 | or agreement entered into at arm's-length rates | ||||||
7 | and terms and the principal purpose for the | ||||||
8 | payment is not federal or Illinois tax avoidance; | ||||||
9 | or
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10 | (iv) an item of interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to a person if | ||||||
12 | the taxpayer establishes by clear and convincing | ||||||
13 | evidence that the adjustments are unreasonable; or | ||||||
14 | if the taxpayer and the Director agree in writing | ||||||
15 | to the application or use of an alternative method | ||||||
16 | of apportionment under Section 304(f).
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17 | Nothing in this subsection shall preclude the | ||||||
18 | Director from making any other adjustment | ||||||
19 | otherwise allowed under Section 404 of this Act | ||||||
20 | for any tax year beginning after the effective | ||||||
21 | date of this amendment provided such adjustment is | ||||||
22 | made pursuant to regulation adopted by the | ||||||
23 | Department and such regulations provide methods | ||||||
24 | and standards by which the Department will utilize | ||||||
25 | its authority under Section 404 of this Act;
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26 | (D-18) An amount equal to the amount of intangible |
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1 | expenses and costs otherwise allowed as a deduction in | ||||||
2 | computing base income, and that were paid, accrued, or | ||||||
3 | incurred, directly or indirectly, (i) for taxable | ||||||
4 | years ending on or after December 31, 2004, to a | ||||||
5 | foreign person who would be a member of the same | ||||||
6 | unitary business group but for the fact that the | ||||||
7 | foreign person's business activity outside the United | ||||||
8 | States is 80% or more of that person's total business | ||||||
9 | activity and (ii) for taxable years ending on or after | ||||||
10 | December 31, 2008, to a person who would be a member of | ||||||
11 | the same unitary business group but for the fact that | ||||||
12 | the person is prohibited under Section 1501(a)(27) | ||||||
13 | from being included in the unitary business group | ||||||
14 | because he or she is ordinarily required to apportion | ||||||
15 | business income under different subsections of Section | ||||||
16 | 304. The addition modification required by this | ||||||
17 | subparagraph shall be reduced to the extent that | ||||||
18 | dividends were included in base income of the unitary | ||||||
19 | group for the same taxable year and received by the | ||||||
20 | taxpayer or by a member of the taxpayer's unitary | ||||||
21 | business group (including amounts included in gross | ||||||
22 | income under Sections 951 through 964 of the Internal | ||||||
23 | Revenue Code and amounts included in gross income | ||||||
24 | under Section 78 of the Internal Revenue Code) with | ||||||
25 | respect to the stock of the same person to whom the | ||||||
26 | intangible expenses and costs were directly or |
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1 | indirectly paid, incurred, or accrued. The preceding | ||||||
2 | sentence does not apply to the extent that the same | ||||||
3 | dividends caused a reduction to the addition | ||||||
4 | modification required under Section 203(a)(2)(D-17) of | ||||||
5 | this Act. As used in this subparagraph, the term | ||||||
6 | "intangible expenses and costs" includes (1) expenses, | ||||||
7 | losses, and costs for, or related to, the direct or | ||||||
8 | indirect acquisition, use, maintenance or management, | ||||||
9 | ownership, sale, exchange, or any other disposition of | ||||||
10 | intangible property; (2) losses incurred, directly or | ||||||
11 | indirectly, from factoring transactions or discounting | ||||||
12 | transactions; (3) royalty, patent, technical, and | ||||||
13 | copyright fees; (4) licensing fees; and (5) other | ||||||
14 | similar expenses and costs.
For purposes of this | ||||||
15 | subparagraph, "intangible property" includes patents, | ||||||
16 | patent applications, trade names, trademarks, service | ||||||
17 | marks, copyrights, mask works, trade secrets, and | ||||||
18 | similar types of intangible assets. | ||||||
19 | This paragraph shall not apply to the following: | ||||||
20 | (i) any item of intangible expenses or costs | ||||||
21 | paid, accrued, or incurred, directly or | ||||||
22 | indirectly, from a transaction with a person who | ||||||
23 | is subject in a foreign country or state, other | ||||||
24 | than a state which requires mandatory unitary | ||||||
25 | reporting, to a tax on or measured by net income | ||||||
26 | with respect to such item; or |
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| |||||||
1 | (ii) any item of intangible expense or cost | ||||||
2 | paid, accrued, or incurred, directly or | ||||||
3 | indirectly, if the taxpayer can establish, based | ||||||
4 | on a preponderance of the evidence, both of the | ||||||
5 | following: | ||||||
6 | (a) the person during the same taxable | ||||||
7 | year paid, accrued, or incurred, the | ||||||
8 | intangible expense or cost to a person that is | ||||||
9 | not a related member, and | ||||||
10 | (b) the transaction giving rise to the | ||||||
11 | intangible expense or cost between the | ||||||
12 | taxpayer and the person did not have as a | ||||||
13 | principal purpose the avoidance of Illinois | ||||||
14 | income tax, and is paid pursuant to a contract | ||||||
15 | or agreement that reflects arm's-length terms; | ||||||
16 | or | ||||||
17 | (iii) any item of intangible expense or cost | ||||||
18 | paid, accrued, or incurred, directly or | ||||||
19 | indirectly, from a transaction with a person if | ||||||
20 | the taxpayer establishes by clear and convincing | ||||||
21 | evidence, that the adjustments are unreasonable; | ||||||
22 | or if the taxpayer and the Director agree in | ||||||
23 | writing to the application or use of an | ||||||
24 | alternative method of apportionment under Section | ||||||
25 | 304(f);
| ||||||
26 | Nothing in this subsection shall preclude the |
| |||||||
| |||||||
1 | Director from making any other adjustment | ||||||
2 | otherwise allowed under Section 404 of this Act | ||||||
3 | for any tax year beginning after the effective | ||||||
4 | date of this amendment provided such adjustment is | ||||||
5 | made pursuant to regulation adopted by the | ||||||
6 | Department and such regulations provide methods | ||||||
7 | and standards by which the Department will utilize | ||||||
8 | its authority under Section 404 of this Act;
| ||||||
9 | (D-19) For taxable years ending on or after | ||||||
10 | December 31, 2008, an amount equal to the amount of | ||||||
11 | insurance premium expenses and costs otherwise allowed | ||||||
12 | as a deduction in computing base income, and that were | ||||||
13 | paid, accrued, or incurred, directly or indirectly, to | ||||||
14 | a person who would be a member of the same unitary | ||||||
15 | business group but for the fact that the person is | ||||||
16 | prohibited under Section 1501(a)(27) from being | ||||||
17 | included in the unitary business group because he or | ||||||
18 | she is ordinarily required to apportion business | ||||||
19 | income under different subsections of Section 304. The | ||||||
20 | addition modification required by this subparagraph | ||||||
21 | shall be reduced to the extent that dividends were | ||||||
22 | included in base income of the unitary group for the | ||||||
23 | same taxable year and received by the taxpayer or by a | ||||||
24 | member of the taxpayer's unitary business group | ||||||
25 | (including amounts included in gross income under | ||||||
26 | Sections 951 through 964 of the Internal Revenue Code |
| |||||||
| |||||||
1 | and amounts included in gross income under Section 78 | ||||||
2 | of the Internal Revenue Code) with respect to the | ||||||
3 | stock of the same person to whom the premiums and costs | ||||||
4 | were directly or indirectly paid, incurred, or | ||||||
5 | accrued. The preceding sentence does not apply to the | ||||||
6 | extent that the same dividends caused a reduction to | ||||||
7 | the addition modification required under Section | ||||||
8 | 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this | ||||||
9 | Act ; .
| ||||||
10 | (D-20) For taxable years beginning on or after | ||||||
11 | January 1,
2002 and ending on or before December 31, | ||||||
12 | 2006, in
the
case of a distribution from a qualified | ||||||
13 | tuition program under Section 529 of
the Internal | ||||||
14 | Revenue Code, other than (i) a distribution from a | ||||||
15 | College Savings
Pool created under Section 16.5 of the | ||||||
16 | State Treasurer Act or (ii) a
distribution from the | ||||||
17 | Illinois Prepaid Tuition Trust Fund, an amount equal | ||||||
18 | to
the amount excluded from gross income under Section | ||||||
19 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
20 | January 1, 2007, in the case of a distribution from a | ||||||
21 | qualified tuition program under Section 529 of the | ||||||
22 | Internal Revenue Code, other than (i) a distribution | ||||||
23 | from a College Savings Pool created under Section 16.5 | ||||||
24 | of the State Treasurer Act, (ii) a distribution from | ||||||
25 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
26 | distribution from a qualified tuition program under |
| |||||||
| |||||||
1 | Section 529 of the Internal Revenue Code that (I) | ||||||
2 | adopts and determines that its offering materials | ||||||
3 | comply with the College Savings Plans Network's | ||||||
4 | disclosure principles and (II) has made reasonable | ||||||
5 | efforts to inform in-state residents of the existence | ||||||
6 | of in-state qualified tuition programs by informing | ||||||
7 | Illinois residents directly and, where applicable, to | ||||||
8 | inform financial intermediaries distributing the | ||||||
9 | program to inform in-state residents of the existence | ||||||
10 | of in-state qualified tuition programs at least | ||||||
11 | annually, an amount equal to the amount excluded from | ||||||
12 | gross income under Section 529(c)(3)(B). | ||||||
13 | For the purposes of this subparagraph (D-20), a | ||||||
14 | qualified tuition program has made reasonable efforts | ||||||
15 | if it makes disclosures (which may use the term | ||||||
16 | "in-state program" or "in-state plan" and need not | ||||||
17 | specifically refer to Illinois or its qualified | ||||||
18 | programs by name) (i) directly to prospective | ||||||
19 | participants in its offering materials or makes a | ||||||
20 | public disclosure, such as a website posting; and (ii) | ||||||
21 | where applicable, to intermediaries selling the | ||||||
22 | out-of-state program in the same manner that the | ||||||
23 | out-of-state program distributes its offering | ||||||
24 | materials; | ||||||
25 | (D-20.5) For taxable years beginning on or after | ||||||
26 | January 1, 2018, in the case of a distribution from a |
| |||||||
| |||||||
1 | qualified ABLE program under Section 529A of the | ||||||
2 | Internal Revenue Code, other than a distribution from | ||||||
3 | a qualified ABLE program created under Section 16.6 of | ||||||
4 | the State Treasurer Act, an amount equal to the amount | ||||||
5 | excluded from gross income under Section 529A(c)(1)(B) | ||||||
6 | of the Internal Revenue Code; | ||||||
7 | (D-21) For taxable years beginning on or after | ||||||
8 | January 1, 2007, in the case of transfer of moneys from | ||||||
9 | a qualified tuition program under Section 529 of the | ||||||
10 | Internal Revenue Code that is administered by the | ||||||
11 | State to an out-of-state program, an amount equal to | ||||||
12 | the amount of moneys previously deducted from base | ||||||
13 | income under subsection (a)(2)(Y) of this Section; | ||||||
14 | (D-21.5) For taxable years beginning on or after | ||||||
15 | January 1, 2018, in the case of the transfer of moneys | ||||||
16 | from a qualified tuition program under Section 529 or | ||||||
17 | a qualified ABLE program under Section 529A of the | ||||||
18 | Internal Revenue Code that is administered by this | ||||||
19 | State to an ABLE account established under an | ||||||
20 | out-of-state ABLE account program, an amount equal to | ||||||
21 | the contribution component of the transferred amount | ||||||
22 | that was previously deducted from base income under | ||||||
23 | subsection (a)(2)(Y) or subsection (a)(2)(HH) of this | ||||||
24 | Section; | ||||||
25 | (D-22) For taxable years beginning on or after | ||||||
26 | January 1, 2009, and prior to January 1, 2018, in the |
| |||||||
| |||||||
1 | case of a nonqualified withdrawal or refund of moneys | ||||||
2 | from a qualified tuition program under Section 529 of | ||||||
3 | the Internal Revenue Code administered by the State | ||||||
4 | that is not used for qualified expenses at an eligible | ||||||
5 | education institution, an amount equal to the | ||||||
6 | contribution component of the nonqualified withdrawal | ||||||
7 | or refund that was previously deducted from base | ||||||
8 | income under subsection (a)(2)(y) of this Section, | ||||||
9 | provided that the withdrawal or refund did not result | ||||||
10 | from the beneficiary's death or disability. For | ||||||
11 | taxable years beginning on or after January 1, 2018: | ||||||
12 | (1) in the case of a nonqualified withdrawal or | ||||||
13 | refund, as defined under Section
16.5 of the State | ||||||
14 | Treasurer Act, of moneys from a qualified tuition | ||||||
15 | program under Section 529 of the Internal Revenue Code | ||||||
16 | administered by the State, an amount equal to the | ||||||
17 | contribution component of the nonqualified withdrawal | ||||||
18 | or refund that was previously deducted from base
| ||||||
19 | income under subsection (a)(2)(Y) of this Section, and | ||||||
20 | (2) in the case of a nonqualified withdrawal or refund | ||||||
21 | from a qualified ABLE program under Section 529A of | ||||||
22 | the Internal Revenue Code administered by the State | ||||||
23 | that is not used for qualified disability expenses, an | ||||||
24 | amount equal to the contribution component of the | ||||||
25 | nonqualified withdrawal or refund that was previously | ||||||
26 | deducted from base income under subsection (a)(2)(HH) |
| |||||||
| |||||||
1 | of this Section; | ||||||
2 | (D-23) An amount equal to the credit allowable to | ||||||
3 | the taxpayer under Section 218(a) of this Act, | ||||||
4 | determined without regard to Section 218(c) of this | ||||||
5 | Act; | ||||||
6 | (D-24) For taxable years ending on or after | ||||||
7 | December 31, 2017, an amount equal to the deduction | ||||||
8 | allowed under Section 199 of the Internal Revenue Code | ||||||
9 | for the taxable year; | ||||||
10 | and by deducting from the total so obtained the
sum of the | ||||||
11 | following amounts: | ||||||
12 | (E) For taxable years ending before December 31, | ||||||
13 | 2001,
any amount included in such total in respect of | ||||||
14 | any compensation
(including but not limited to any | ||||||
15 | compensation paid or accrued to a
serviceman while a | ||||||
16 | prisoner of war or missing in action) paid to a | ||||||
17 | resident
by reason of being on active duty in the Armed | ||||||
18 | Forces of the United States
and in respect of any | ||||||
19 | compensation paid or accrued to a resident who as a
| ||||||
20 | governmental employee was a prisoner of war or missing | ||||||
21 | in action, and in
respect of any compensation paid to a | ||||||
22 | resident in 1971 or thereafter for
annual training | ||||||
23 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
24 | United States Code as a member of the Illinois | ||||||
25 | National Guard or, beginning with taxable years ending | ||||||
26 | on or after December 31, 2007, the National Guard of |
| |||||||
| |||||||
1 | any other state.
For taxable years ending on or after | ||||||
2 | December 31, 2001, any amount included in
such total | ||||||
3 | in respect of any compensation (including but not | ||||||
4 | limited to any
compensation paid or accrued to a | ||||||
5 | serviceman while a prisoner of war or missing
in | ||||||
6 | action) paid to a resident by reason of being a member | ||||||
7 | of any component of
the Armed Forces of the United | ||||||
8 | States and in respect of any compensation paid
or | ||||||
9 | accrued to a resident who as a governmental employee | ||||||
10 | was a prisoner of war
or missing in action, and in | ||||||
11 | respect of any compensation paid to a resident in
2001 | ||||||
12 | or thereafter by reason of being a member of the | ||||||
13 | Illinois National Guard or, beginning with taxable | ||||||
14 | years ending on or after December 31, 2007, the | ||||||
15 | National Guard of any other state.
The provisions of | ||||||
16 | this subparagraph (E) are exempt
from the provisions | ||||||
17 | of Section 250; | ||||||
18 | (F) An amount equal to all amounts included in | ||||||
19 | such total pursuant
to the provisions of Sections | ||||||
20 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a),
and | ||||||
21 | 408 of the Internal Revenue Code, or included in such | ||||||
22 | total as
distributions under the provisions of any | ||||||
23 | retirement or disability plan for
employees of any | ||||||
24 | governmental agency or unit, or retirement payments to
| ||||||
25 | retired partners, which payments are excluded in | ||||||
26 | computing net earnings
from self employment by Section |
| |||||||
| |||||||
1 | 1402 of the Internal Revenue Code and
regulations | ||||||
2 | adopted pursuant thereto; | ||||||
3 | (G) The valuation limitation amount; | ||||||
4 | (H) An amount equal to the amount of any tax | ||||||
5 | imposed by this Act
which was refunded to the taxpayer | ||||||
6 | and included in such total for the
taxable year; | ||||||
7 | (I) An amount equal to all amounts included in | ||||||
8 | such total pursuant
to the provisions of Section 111 | ||||||
9 | of the Internal Revenue Code as a
recovery of items | ||||||
10 | previously deducted from adjusted gross income in the
| ||||||
11 | computation of taxable income; | ||||||
12 | (J) An amount equal to those dividends included in | ||||||
13 | such total which were
paid by a corporation which | ||||||
14 | conducts business operations in a River Edge | ||||||
15 | Redevelopment Zone or zones created under the River | ||||||
16 | Edge Redevelopment Zone Act, and conducts
| ||||||
17 | substantially all of its operations in a River Edge | ||||||
18 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
19 | exempt from the provisions of Section 250; | ||||||
20 | (K) An amount equal to those dividends included in | ||||||
21 | such total that
were paid by a corporation that | ||||||
22 | conducts business operations in a federally
designated | ||||||
23 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
24 | a High Impact
Business located in Illinois; provided | ||||||
25 | that dividends eligible for the
deduction provided in | ||||||
26 | subparagraph (J) of paragraph (2) of this subsection
|
| |||||||
| |||||||
1 | shall not be eligible for the deduction provided under | ||||||
2 | this subparagraph
(K); | ||||||
3 | (L) For taxable years ending after December 31, | ||||||
4 | 1983, an amount equal to
all social security benefits | ||||||
5 | and railroad retirement benefits included in
such | ||||||
6 | total pursuant to Sections 72(r) and 86 of the | ||||||
7 | Internal Revenue Code; | ||||||
8 | (M) With the exception of any amounts subtracted | ||||||
9 | under subparagraph
(N), an amount equal to the sum of | ||||||
10 | all amounts disallowed as
deductions by (i) Sections | ||||||
11 | 171(a)(2) , and 265(a)(2) of the Internal Revenue Code, | ||||||
12 | and all amounts of expenses allocable
to interest and | ||||||
13 | disallowed as deductions by Section 265(a)(1) of the | ||||||
14 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
15 | ending on or after August 13, 1999, Sections | ||||||
16 | 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||||||
17 | Internal Revenue Code, plus, for taxable years ending | ||||||
18 | on or after December 31, 2011, Section 45G(e)(3) of | ||||||
19 | the Internal Revenue Code and, for taxable years | ||||||
20 | ending on or after December 31, 2008, any amount | ||||||
21 | included in gross income under Section 87 of the | ||||||
22 | Internal Revenue Code; the provisions of this
| ||||||
23 | subparagraph are exempt from the provisions of Section | ||||||
24 | 250; | ||||||
25 | (N) An amount equal to all amounts included in | ||||||
26 | such total which are
exempt from taxation by this |
| |||||||
| |||||||
1 | State either by reason of its statutes or
Constitution
| ||||||
2 | or by reason of the Constitution, treaties or statutes | ||||||
3 | of the United States;
provided that, in the case of any | ||||||
4 | statute of this State that exempts income
derived from | ||||||
5 | bonds or other obligations from the tax imposed under | ||||||
6 | this Act,
the amount exempted shall be the interest | ||||||
7 | net of bond premium amortization; | ||||||
8 | (O) An amount equal to any contribution made to a | ||||||
9 | job training
project established pursuant to the Tax | ||||||
10 | Increment Allocation Redevelopment Act; | ||||||
11 | (P) An amount equal to the amount of the deduction | ||||||
12 | used to compute the
federal income tax credit for | ||||||
13 | restoration of substantial amounts held under
claim of | ||||||
14 | right for the taxable year pursuant to Section 1341 of | ||||||
15 | the
Internal Revenue Code or of any itemized deduction | ||||||
16 | taken from adjusted gross income in the computation of | ||||||
17 | taxable income for restoration of substantial amounts | ||||||
18 | held under claim of right for the taxable year; | ||||||
19 | (Q) An amount equal to any amounts included in | ||||||
20 | such total, received by
the taxpayer as an | ||||||
21 | acceleration in the payment of life, endowment or | ||||||
22 | annuity
benefits in advance of the time they would | ||||||
23 | otherwise be payable as an indemnity
for a terminal | ||||||
24 | illness; | ||||||
25 | (R) An amount equal to the amount of any federal or | ||||||
26 | State bonus paid
to veterans of the Persian Gulf War; |
| |||||||
| |||||||
1 | (S) An amount, to the extent included in adjusted | ||||||
2 | gross income, equal
to the amount of a contribution | ||||||
3 | made in the taxable year on behalf of the
taxpayer to a | ||||||
4 | medical care savings account established under the | ||||||
5 | Medical Care
Savings Account Act or the Medical Care | ||||||
6 | Savings Account Act of 2000 to the
extent the | ||||||
7 | contribution is accepted by the account
administrator | ||||||
8 | as provided in that Act; | ||||||
9 | (T) An amount, to the extent included in adjusted | ||||||
10 | gross income, equal to
the amount of interest earned | ||||||
11 | in the taxable year on a medical care savings
account | ||||||
12 | established under the Medical Care Savings Account Act | ||||||
13 | or the Medical
Care Savings Account Act of 2000 on | ||||||
14 | behalf of the
taxpayer, other than interest added | ||||||
15 | pursuant to item (D-5) of this paragraph
(2); | ||||||
16 | (U) For one taxable year beginning on or after | ||||||
17 | January 1,
1994, an
amount equal to the total amount of | ||||||
18 | tax imposed and paid under subsections (a)
and (b) of | ||||||
19 | Section 201 of this Act on grant amounts received by | ||||||
20 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
21 | Act during the taxpayer's taxable years
1992 and 1993; | ||||||
22 | (V) Beginning with tax years ending on or after | ||||||
23 | December 31, 1995 and
ending with tax years ending on | ||||||
24 | or before December 31, 2004, an amount equal to
the | ||||||
25 | amount paid by a taxpayer who is a
self-employed | ||||||
26 | taxpayer, a partner of a partnership, or a
shareholder |
| |||||||
| |||||||
1 | in a Subchapter S corporation for health insurance or | ||||||
2 | long-term
care insurance for that taxpayer or that | ||||||
3 | taxpayer's spouse or dependents, to
the extent that | ||||||
4 | the amount paid for that health insurance or long-term | ||||||
5 | care
insurance may be deducted under Section 213 of | ||||||
6 | the Internal Revenue Code, has not been deducted on | ||||||
7 | the federal income tax return of the taxpayer,
and | ||||||
8 | does not exceed the taxable income attributable to | ||||||
9 | that taxpayer's income,
self-employment income, or | ||||||
10 | Subchapter S corporation income; except that no
| ||||||
11 | deduction shall be allowed under this item (V) if the | ||||||
12 | taxpayer is eligible to
participate in any health | ||||||
13 | insurance or long-term care insurance plan of an
| ||||||
14 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
15 | amount of the health insurance and long-term care | ||||||
16 | insurance
subtracted under this item (V) shall be | ||||||
17 | determined by multiplying total
health insurance and | ||||||
18 | long-term care insurance premiums paid by the taxpayer
| ||||||
19 | times a number that represents the fractional | ||||||
20 | percentage of eligible medical
expenses under Section | ||||||
21 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
22 | deducted on the taxpayer's federal income tax return; | ||||||
23 | (W) For taxable years beginning on or after | ||||||
24 | January 1, 1998,
all amounts included in the | ||||||
25 | taxpayer's federal gross income
in the taxable year | ||||||
26 | from amounts converted from a regular IRA to a Roth |
| |||||||
| |||||||
1 | IRA.
This paragraph is exempt from the provisions of | ||||||
2 | Section
250; | ||||||
3 | (X) For taxable year 1999 and thereafter, an | ||||||
4 | amount equal to the
amount of any (i) distributions, | ||||||
5 | to the extent includible in gross income for
federal | ||||||
6 | income tax purposes, made to the taxpayer because of | ||||||
7 | his or her status
as a victim of persecution for racial | ||||||
8 | or religious reasons by Nazi Germany or
any other Axis | ||||||
9 | regime or as an heir of the victim and (ii) items
of | ||||||
10 | income, to the extent
includible in gross income for | ||||||
11 | federal income tax purposes, attributable to,
derived | ||||||
12 | from or in any way related to assets stolen from, | ||||||
13 | hidden from, or
otherwise lost to a victim of
| ||||||
14 | persecution for racial or religious reasons by Nazi | ||||||
15 | Germany or any other Axis
regime immediately prior to, | ||||||
16 | during, and immediately after World War II,
including, | ||||||
17 | but
not limited to, interest on the proceeds | ||||||
18 | receivable as insurance
under policies issued to a | ||||||
19 | victim of persecution for racial or religious
reasons
| ||||||
20 | by Nazi Germany or any other Axis regime by European | ||||||
21 | insurance companies
immediately prior to and during | ||||||
22 | World War II;
provided, however, this subtraction from | ||||||
23 | federal adjusted gross income does not
apply to assets | ||||||
24 | acquired with such assets or with the proceeds from | ||||||
25 | the sale of
such assets; provided, further, this | ||||||
26 | paragraph shall only apply to a taxpayer
who was the |
| |||||||
| |||||||
1 | first recipient of such assets after their recovery | ||||||
2 | and who is a
victim of persecution for racial or | ||||||
3 | religious reasons
by Nazi Germany or any other Axis | ||||||
4 | regime or as an heir of the victim. The
amount of and | ||||||
5 | the eligibility for any public assistance, benefit, or
| ||||||
6 | similar entitlement is not affected by the inclusion | ||||||
7 | of items (i) and (ii) of
this paragraph in gross income | ||||||
8 | for federal income tax purposes.
This paragraph is | ||||||
9 | exempt from the provisions of Section 250; | ||||||
10 | (Y) For taxable years beginning on or after | ||||||
11 | January 1, 2002
and ending
on or before December 31, | ||||||
12 | 2004, moneys contributed in the taxable year to a | ||||||
13 | College Savings Pool account under
Section 16.5 of the | ||||||
14 | State Treasurer Act, except that amounts excluded from
| ||||||
15 | gross income under Section 529(c)(3)(C)(i) of the | ||||||
16 | Internal Revenue Code
shall not be considered moneys | ||||||
17 | contributed under this subparagraph (Y). For taxable | ||||||
18 | years beginning on or after January 1, 2005, a maximum | ||||||
19 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
20 | College Savings Pool account under Section 16.5 of the
| ||||||
21 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
22 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
23 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
24 | Internal
Revenue Code shall not be considered moneys | ||||||
25 | contributed under this subparagraph
(Y). For purposes | ||||||
26 | of this subparagraph, contributions made by an |
| |||||||
| |||||||
1 | employer on behalf of an employee, or matching | ||||||
2 | contributions made by an employee, shall be treated as | ||||||
3 | made by the employee. This
subparagraph (Y) is exempt | ||||||
4 | from the provisions of Section 250; | ||||||
5 | (Z) For taxable years 2001 and thereafter, for the | ||||||
6 | taxable year in
which the bonus depreciation deduction
| ||||||
7 | is taken on the taxpayer's federal income tax return | ||||||
8 | under
subsection (k) of Section 168 of the Internal | ||||||
9 | Revenue Code and for each
applicable taxable year | ||||||
10 | thereafter, an amount equal to "x", where: | ||||||
11 | (1) "y" equals the amount of the depreciation | ||||||
12 | deduction taken for the
taxable year
on the | ||||||
13 | taxpayer's federal income tax return on property | ||||||
14 | for which the bonus
depreciation deduction
was | ||||||
15 | taken in any year under subsection (k) of Section | ||||||
16 | 168 of the Internal
Revenue Code, but not | ||||||
17 | including the bonus depreciation deduction; | ||||||
18 | (2) for taxable years ending on or before | ||||||
19 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
20 | and then divided by 70 (or "y"
multiplied by | ||||||
21 | 0.429); and | ||||||
22 | (3) for taxable years ending after December | ||||||
23 | 31, 2005: | ||||||
24 | (i) for property on which a bonus | ||||||
25 | depreciation deduction of 30% of the adjusted | ||||||
26 | basis was taken, "x" equals "y" multiplied by |
| |||||||
| |||||||
1 | 30 and then divided by 70 (or "y"
multiplied | ||||||
2 | by 0.429); and | ||||||
3 | (ii) for property on which a bonus | ||||||
4 | depreciation deduction of 50% of the adjusted | ||||||
5 | basis was taken, "x" equals "y" multiplied by | ||||||
6 | 1.0. | ||||||
7 | The aggregate amount deducted under this | ||||||
8 | subparagraph in all taxable
years for any one piece of | ||||||
9 | property may not exceed the amount of the bonus
| ||||||
10 | depreciation deduction
taken on that property on the | ||||||
11 | taxpayer's federal income tax return under
subsection | ||||||
12 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
13 | subparagraph (Z) is exempt from the provisions of | ||||||
14 | Section 250; | ||||||
15 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
16 | or otherwise disposes of
property for which the | ||||||
17 | taxpayer was required in any taxable year to make an
| ||||||
18 | addition modification under subparagraph (D-15), then | ||||||
19 | an amount equal to that
addition modification.
| ||||||
20 | If the taxpayer continues to own property through | ||||||
21 | the last day of the last tax year for which the | ||||||
22 | taxpayer may claim a depreciation deduction for | ||||||
23 | federal income tax purposes and for which the taxpayer | ||||||
24 | was required in any taxable year to make an addition | ||||||
25 | modification under subparagraph (D-15), then an amount | ||||||
26 | equal to that addition modification.
|
| |||||||
| |||||||
1 | The taxpayer is allowed to take the deduction | ||||||
2 | under this subparagraph
only once with respect to any | ||||||
3 | one piece of property. | ||||||
4 | This subparagraph (AA) is exempt from the | ||||||
5 | provisions of Section 250; | ||||||
6 | (BB) Any amount included in adjusted gross income, | ||||||
7 | other
than
salary,
received by a driver in a | ||||||
8 | ridesharing arrangement using a motor vehicle; | ||||||
9 | (CC) The amount of (i) any interest income (net of | ||||||
10 | the deductions allocable thereto) taken into account | ||||||
11 | for the taxable year with respect to a transaction | ||||||
12 | with a taxpayer that is required to make an addition | ||||||
13 | modification with respect to such transaction under | ||||||
14 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
15 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
16 | the amount of that addition modification, and
(ii) any | ||||||
17 | income from intangible property (net of the deductions | ||||||
18 | allocable thereto) taken into account for the taxable | ||||||
19 | year with respect to a transaction with a taxpayer | ||||||
20 | that is required to make an addition modification with | ||||||
21 | respect to such transaction under Section | ||||||
22 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
23 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
24 | addition modification. This subparagraph (CC) is | ||||||
25 | exempt from the provisions of Section 250; | ||||||
26 | (DD) An amount equal to the interest income taken |
| |||||||
| |||||||
1 | into account for the taxable year (net of the | ||||||
2 | deductions allocable thereto) with respect to | ||||||
3 | transactions with (i) a foreign person who would be a | ||||||
4 | member of the taxpayer's unitary business group but | ||||||
5 | for the fact that the foreign person's business | ||||||
6 | activity outside the United States is 80% or more of | ||||||
7 | that person's total business activity and (ii) for | ||||||
8 | taxable years ending on or after December 31, 2008, to | ||||||
9 | a person who would be a member of the same unitary | ||||||
10 | business group but for the fact that the person is | ||||||
11 | prohibited under Section 1501(a)(27) from being | ||||||
12 | included in the unitary business group because he or | ||||||
13 | she is ordinarily required to apportion business | ||||||
14 | income under different subsections of Section 304, but | ||||||
15 | not to exceed the addition modification required to be | ||||||
16 | made for the same taxable year under Section | ||||||
17 | 203(a)(2)(D-17) for interest paid, accrued, or | ||||||
18 | incurred, directly or indirectly, to the same person. | ||||||
19 | This subparagraph (DD) is exempt from the provisions | ||||||
20 | of Section 250; | ||||||
21 | (EE) An amount equal to the income from intangible | ||||||
22 | property taken into account for the taxable year (net | ||||||
23 | of the deductions allocable thereto) with respect to | ||||||
24 | transactions with (i) a foreign person who would be a | ||||||
25 | member of the taxpayer's unitary business group but | ||||||
26 | for the fact that the foreign person's business |
| |||||||
| |||||||
1 | activity outside the United States is 80% or more of | ||||||
2 | that person's total business activity and (ii) for | ||||||
3 | taxable years ending on or after December 31, 2008, to | ||||||
4 | a person who would be a member of the same unitary | ||||||
5 | business group but for the fact that the person is | ||||||
6 | prohibited under Section 1501(a)(27) from being | ||||||
7 | included in the unitary business group because he or | ||||||
8 | she is ordinarily required to apportion business | ||||||
9 | income under different subsections of Section 304, but | ||||||
10 | not to exceed the addition modification required to be | ||||||
11 | made for the same taxable year under Section | ||||||
12 | 203(a)(2)(D-18) for intangible expenses and costs | ||||||
13 | paid, accrued, or incurred, directly or indirectly, to | ||||||
14 | the same foreign person. This subparagraph (EE) is | ||||||
15 | exempt from the provisions of Section 250; | ||||||
16 | (FF) An amount equal to any amount awarded to the | ||||||
17 | taxpayer during the taxable year by the Court of | ||||||
18 | Claims under subsection (c) of Section 8 of the Court | ||||||
19 | of Claims Act for time unjustly served in a State | ||||||
20 | prison. This subparagraph (FF) is exempt from the | ||||||
21 | provisions of Section 250; | ||||||
22 | (GG) For taxable years ending on or after December | ||||||
23 | 31, 2011, in the case of a taxpayer who was required to | ||||||
24 | add back any insurance premiums under Section | ||||||
25 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
26 | that part of a reimbursement received from the |
| |||||||
| |||||||
1 | insurance company equal to the amount of the expense | ||||||
2 | or loss (including expenses incurred by the insurance | ||||||
3 | company) that would have been taken into account as a | ||||||
4 | deduction for federal income tax purposes if the | ||||||
5 | expense or loss had been uninsured. If a taxpayer | ||||||
6 | makes the election provided for by this subparagraph | ||||||
7 | (GG), the insurer to which the premiums were paid must | ||||||
8 | add back to income the amount subtracted by the | ||||||
9 | taxpayer pursuant to this subparagraph (GG). This | ||||||
10 | subparagraph (GG) is exempt from the provisions of | ||||||
11 | Section 250; and | ||||||
12 | (HH) For taxable years beginning on or after | ||||||
13 | January 1, 2018 and prior to January 1, 2023, a maximum | ||||||
14 | of $10,000 contributed in the taxable year to a | ||||||
15 | qualified ABLE account under Section 16.6 of the State | ||||||
16 | Treasurer Act, except that amounts excluded from gross | ||||||
17 | income under Section 529(c)(3)(C)(i) or Section | ||||||
18 | 529A(c)(1)(C) of the Internal Revenue Code shall not | ||||||
19 | be considered moneys contributed under this | ||||||
20 | subparagraph (HH). For purposes of this subparagraph | ||||||
21 | (HH), contributions made by an employer on behalf of | ||||||
22 | an employee, or matching contributions made by an | ||||||
23 | employee, shall be treated as made by the employee. | ||||||
24 | (II) Any grant amounts received as an eligible | ||||||
25 | entity under the Real Economic Support That | ||||||
26 | Acknowledges Unique Restaurant Assistance Needed To |
| |||||||
| |||||||
1 | Survive (RESTAURANTS) Act.
| ||||||
2 | (b) Corporations. | ||||||
3 | (1) In general. In the case of a corporation, base | ||||||
4 | income means an
amount equal to the taxpayer's taxable | ||||||
5 | income for the taxable year as
modified by paragraph (2). | ||||||
6 | (2) Modifications. The taxable income referred to in | ||||||
7 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
8 | of the following amounts: | ||||||
9 | (A) An amount equal to all amounts paid or accrued | ||||||
10 | to the taxpayer
as interest and all distributions | ||||||
11 | received from regulated investment
companies during | ||||||
12 | the taxable year to the extent excluded from gross
| ||||||
13 | income in the computation of taxable income; | ||||||
14 | (B) An amount equal to the amount of tax imposed by | ||||||
15 | this Act to the
extent deducted from gross income in | ||||||
16 | the computation of taxable income
for the taxable | ||||||
17 | year; | ||||||
18 | (C) In the case of a regulated investment company, | ||||||
19 | an amount equal to
the excess of (i) the net long-term | ||||||
20 | capital gain for the taxable year, over
(ii) the | ||||||
21 | amount of the capital gain dividends designated as | ||||||
22 | such in accordance
with Section 852(b)(3)(C) of the | ||||||
23 | Internal Revenue Code and any amount
designated under | ||||||
24 | Section 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
25 | attributable to the taxable year (this amendatory Act |
| |||||||
| |||||||
1 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
2 | law and is not a new
enactment); | ||||||
3 | (D) The amount of any net operating loss deduction | ||||||
4 | taken in arriving
at taxable income, other than a net | ||||||
5 | operating loss carried forward from a
taxable year | ||||||
6 | ending prior to December 31, 1986; | ||||||
7 | (E) For taxable years in which a net operating | ||||||
8 | loss carryback or
carryforward from a taxable year | ||||||
9 | ending prior to December 31, 1986 is an
element of | ||||||
10 | taxable income under paragraph (1) of subsection (e) | ||||||
11 | or
subparagraph (E) of paragraph (2) of subsection | ||||||
12 | (e), the amount by which
addition modifications other | ||||||
13 | than those provided by this subparagraph (E)
exceeded | ||||||
14 | subtraction modifications in such earlier taxable | ||||||
15 | year, with the
following limitations applied in the | ||||||
16 | order that they are listed: | ||||||
17 | (i) the addition modification relating to the | ||||||
18 | net operating loss
carried back or forward to the | ||||||
19 | taxable year from any taxable year ending
prior to | ||||||
20 | December 31, 1986 shall be reduced by the amount | ||||||
21 | of addition
modification under this subparagraph | ||||||
22 | (E) which related to that net operating
loss and | ||||||
23 | which was taken into account in calculating the | ||||||
24 | base income of an
earlier taxable year, and | ||||||
25 | (ii) the addition modification relating to the | ||||||
26 | net operating loss
carried back or forward to the |
| |||||||
| |||||||
1 | taxable year from any taxable year ending
prior to | ||||||
2 | December 31, 1986 shall not exceed the amount of | ||||||
3 | such carryback or
carryforward; | ||||||
4 | For taxable years in which there is a net | ||||||
5 | operating loss carryback or
carryforward from more | ||||||
6 | than one other taxable year ending prior to December
| ||||||
7 | 31, 1986, the addition modification provided in this | ||||||
8 | subparagraph (E) shall
be the sum of the amounts | ||||||
9 | computed independently under the preceding
provisions | ||||||
10 | of this subparagraph (E) for each such taxable year; | ||||||
11 | (E-5) For taxable years ending after December 31, | ||||||
12 | 1997, an
amount equal to any eligible remediation | ||||||
13 | costs that the corporation
deducted in computing | ||||||
14 | adjusted gross income and for which the
corporation | ||||||
15 | claims a credit under subsection (l) of Section 201; | ||||||
16 | (E-10) For taxable years 2001 and thereafter, an | ||||||
17 | amount equal to the
bonus depreciation deduction taken | ||||||
18 | on the taxpayer's federal income tax return for the | ||||||
19 | taxable
year under subsection (k) of Section 168 of | ||||||
20 | the Internal Revenue Code; | ||||||
21 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
22 | or otherwise disposes of property for which the | ||||||
23 | taxpayer was required in any taxable year to
make an | ||||||
24 | addition modification under subparagraph (E-10), then | ||||||
25 | an amount equal
to the aggregate amount of the | ||||||
26 | deductions taken in all taxable
years under |
| |||||||
| |||||||
1 | subparagraph (T) with respect to that property. | ||||||
2 | If the taxpayer continues to own property through | ||||||
3 | the last day of the last tax year for which the | ||||||
4 | taxpayer may claim a depreciation deduction for | ||||||
5 | federal income tax purposes and for which the taxpayer | ||||||
6 | was allowed in any taxable year to make a subtraction | ||||||
7 | modification under subparagraph (T), then an amount | ||||||
8 | equal to that subtraction modification.
| ||||||
9 | The taxpayer is required to make the addition | ||||||
10 | modification under this
subparagraph
only once with | ||||||
11 | respect to any one piece of property; | ||||||
12 | (E-12) An amount equal to the amount otherwise | ||||||
13 | allowed as a deduction in computing base income for | ||||||
14 | interest paid, accrued, or incurred, directly or | ||||||
15 | indirectly, (i) for taxable years ending on or after | ||||||
16 | December 31, 2004, to a foreign person who would be a | ||||||
17 | member of the same unitary business group but for the | ||||||
18 | fact the foreign person's business activity outside | ||||||
19 | the United States is 80% or more of the foreign | ||||||
20 | person's total business activity and (ii) for taxable | ||||||
21 | years ending on or after December 31, 2008, to a person | ||||||
22 | who would be a member of the same unitary business | ||||||
23 | group but for the fact that the person is prohibited | ||||||
24 | under Section 1501(a)(27) from being included in the | ||||||
25 | unitary business group because he or she is ordinarily | ||||||
26 | required to apportion business income under different |
| |||||||
| |||||||
1 | subsections of Section 304. The addition modification | ||||||
2 | required by this subparagraph shall be reduced to the | ||||||
3 | extent that dividends were included in base income of | ||||||
4 | the unitary group for the same taxable year and | ||||||
5 | received by the taxpayer or by a member of the | ||||||
6 | taxpayer's unitary business group (including amounts | ||||||
7 | included in gross income pursuant to Sections 951 | ||||||
8 | through 964 of the Internal Revenue Code and amounts | ||||||
9 | included in gross income under Section 78 of the | ||||||
10 | Internal Revenue Code) with respect to the stock of | ||||||
11 | the same person to whom the interest was paid, | ||||||
12 | accrued, or incurred.
| ||||||
13 | This paragraph shall not apply to the following:
| ||||||
14 | (i) an item of interest paid, accrued, or | ||||||
15 | incurred, directly or indirectly, to a person who | ||||||
16 | is subject in a foreign country or state, other | ||||||
17 | than a state which requires mandatory unitary | ||||||
18 | reporting, to a tax on or measured by net income | ||||||
19 | with respect to such interest; or | ||||||
20 | (ii) an item of interest paid, accrued, or | ||||||
21 | incurred, directly or indirectly, to a person if | ||||||
22 | the taxpayer can establish, based on a | ||||||
23 | preponderance of the evidence, both of the | ||||||
24 | following: | ||||||
25 | (a) the person, during the same taxable | ||||||
26 | year, paid, accrued, or incurred, the interest |
| |||||||
| |||||||
1 | to a person that is not a related member, and | ||||||
2 | (b) the transaction giving rise to the | ||||||
3 | interest expense between the taxpayer and the | ||||||
4 | person did not have as a principal purpose the | ||||||
5 | avoidance of Illinois income tax, and is paid | ||||||
6 | pursuant to a contract or agreement that | ||||||
7 | reflects an arm's-length interest rate and | ||||||
8 | terms; or
| ||||||
9 | (iii) the taxpayer can establish, based on | ||||||
10 | clear and convincing evidence, that the interest | ||||||
11 | paid, accrued, or incurred relates to a contract | ||||||
12 | or agreement entered into at arm's-length rates | ||||||
13 | and terms and the principal purpose for the | ||||||
14 | payment is not federal or Illinois tax avoidance; | ||||||
15 | or
| ||||||
16 | (iv) an item of interest paid, accrued, or | ||||||
17 | incurred, directly or indirectly, to a person if | ||||||
18 | the taxpayer establishes by clear and convincing | ||||||
19 | evidence that the adjustments are unreasonable; or | ||||||
20 | if the taxpayer and the Director agree in writing | ||||||
21 | to the application or use of an alternative method | ||||||
22 | of apportionment under Section 304(f).
| ||||||
23 | Nothing in this subsection shall preclude the | ||||||
24 | Director from making any other adjustment | ||||||
25 | otherwise allowed under Section 404 of this Act | ||||||
26 | for any tax year beginning after the effective |
| |||||||
| |||||||
1 | date of this amendment provided such adjustment is | ||||||
2 | made pursuant to regulation adopted by the | ||||||
3 | Department and such regulations provide methods | ||||||
4 | and standards by which the Department will utilize | ||||||
5 | its authority under Section 404 of this Act;
| ||||||
6 | (E-13) An amount equal to the amount of intangible | ||||||
7 | expenses and costs otherwise allowed as a deduction in | ||||||
8 | computing base income, and that were paid, accrued, or | ||||||
9 | incurred, directly or indirectly, (i) for taxable | ||||||
10 | years ending on or after December 31, 2004, to a | ||||||
11 | foreign person who would be a member of the same | ||||||
12 | unitary business group but for the fact that the | ||||||
13 | foreign person's business activity outside the United | ||||||
14 | States is 80% or more of that person's total business | ||||||
15 | activity and (ii) for taxable years ending on or after | ||||||
16 | December 31, 2008, to a person who would be a member of | ||||||
17 | the same unitary business group but for the fact that | ||||||
18 | the person is prohibited under Section 1501(a)(27) | ||||||
19 | from being included in the unitary business group | ||||||
20 | because he or she is ordinarily required to apportion | ||||||
21 | business income under different subsections of Section | ||||||
22 | 304. The addition modification required by this | ||||||
23 | subparagraph shall be reduced to the extent that | ||||||
24 | dividends were included in base income of the unitary | ||||||
25 | group for the same taxable year and received by the | ||||||
26 | taxpayer or by a member of the taxpayer's unitary |
| |||||||
| |||||||
1 | business group (including amounts included in gross | ||||||
2 | income pursuant to Sections 951 through 964 of the | ||||||
3 | Internal Revenue Code and amounts included in gross | ||||||
4 | income under Section 78 of the Internal Revenue Code) | ||||||
5 | with respect to the stock of the same person to whom | ||||||
6 | the intangible expenses and costs were directly or | ||||||
7 | indirectly paid, incurred, or accrued. The preceding | ||||||
8 | sentence shall not apply to the extent that the same | ||||||
9 | dividends caused a reduction to the addition | ||||||
10 | modification required under Section 203(b)(2)(E-12) of | ||||||
11 | this Act.
As used in this subparagraph, the term | ||||||
12 | "intangible expenses and costs" includes (1) expenses, | ||||||
13 | losses, and costs for, or related to, the direct or | ||||||
14 | indirect acquisition, use, maintenance or management, | ||||||
15 | ownership, sale, exchange, or any other disposition of | ||||||
16 | intangible property; (2) losses incurred, directly or | ||||||
17 | indirectly, from factoring transactions or discounting | ||||||
18 | transactions; (3) royalty, patent, technical, and | ||||||
19 | copyright fees; (4) licensing fees; and (5) other | ||||||
20 | similar expenses and costs.
For purposes of this | ||||||
21 | subparagraph, "intangible property" includes patents, | ||||||
22 | patent applications, trade names, trademarks, service | ||||||
23 | marks, copyrights, mask works, trade secrets, and | ||||||
24 | similar types of intangible assets. | ||||||
25 | This paragraph shall not apply to the following: | ||||||
26 | (i) any item of intangible expenses or costs |
| |||||||
| |||||||
1 | paid, accrued, or incurred, directly or | ||||||
2 | indirectly, from a transaction with a person who | ||||||
3 | is subject in a foreign country or state, other | ||||||
4 | than a state which requires mandatory unitary | ||||||
5 | reporting, to a tax on or measured by net income | ||||||
6 | with respect to such item; or | ||||||
7 | (ii) any item of intangible expense or cost | ||||||
8 | paid, accrued, or incurred, directly or | ||||||
9 | indirectly, if the taxpayer can establish, based | ||||||
10 | on a preponderance of the evidence, both of the | ||||||
11 | following: | ||||||
12 | (a) the person during the same taxable | ||||||
13 | year paid, accrued, or incurred, the | ||||||
14 | intangible expense or cost to a person that is | ||||||
15 | not a related member, and | ||||||
16 | (b) the transaction giving rise to the | ||||||
17 | intangible expense or cost between the | ||||||
18 | taxpayer and the person did not have as a | ||||||
19 | principal purpose the avoidance of Illinois | ||||||
20 | income tax, and is paid pursuant to a contract | ||||||
21 | or agreement that reflects arm's-length terms; | ||||||
22 | or | ||||||
23 | (iii) any item of intangible expense or cost | ||||||
24 | paid, accrued, or incurred, directly or | ||||||
25 | indirectly, from a transaction with a person if | ||||||
26 | the taxpayer establishes by clear and convincing |
| |||||||
| |||||||
1 | evidence, that the adjustments are unreasonable; | ||||||
2 | or if the taxpayer and the Director agree in | ||||||
3 | writing to the application or use of an | ||||||
4 | alternative method of apportionment under Section | ||||||
5 | 304(f);
| ||||||
6 | Nothing in this subsection shall preclude the | ||||||
7 | Director from making any other adjustment | ||||||
8 | otherwise allowed under Section 404 of this Act | ||||||
9 | for any tax year beginning after the effective | ||||||
10 | date of this amendment provided such adjustment is | ||||||
11 | made pursuant to regulation adopted by the | ||||||
12 | Department and such regulations provide methods | ||||||
13 | and standards by which the Department will utilize | ||||||
14 | its authority under Section 404 of this Act;
| ||||||
15 | (E-14) For taxable years ending on or after | ||||||
16 | December 31, 2008, an amount equal to the amount of | ||||||
17 | insurance premium expenses and costs otherwise allowed | ||||||
18 | as a deduction in computing base income, and that were | ||||||
19 | paid, accrued, or incurred, directly or indirectly, to | ||||||
20 | a person who would be a member of the same unitary | ||||||
21 | business group but for the fact that the person is | ||||||
22 | prohibited under Section 1501(a)(27) from being | ||||||
23 | included in the unitary business group because he or | ||||||
24 | she is ordinarily required to apportion business | ||||||
25 | income under different subsections of Section 304. The | ||||||
26 | addition modification required by this subparagraph |
| |||||||
| |||||||
1 | shall be reduced to the extent that dividends were | ||||||
2 | included in base income of the unitary group for the | ||||||
3 | same taxable year and received by the taxpayer or by a | ||||||
4 | member of the taxpayer's unitary business group | ||||||
5 | (including amounts included in gross income under | ||||||
6 | Sections 951 through 964 of the Internal Revenue Code | ||||||
7 | and amounts included in gross income under Section 78 | ||||||
8 | of the Internal Revenue Code) with respect to the | ||||||
9 | stock of the same person to whom the premiums and costs | ||||||
10 | were directly or indirectly paid, incurred, or | ||||||
11 | accrued. The preceding sentence does not apply to the | ||||||
12 | extent that the same dividends caused a reduction to | ||||||
13 | the addition modification required under Section | ||||||
14 | 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this | ||||||
15 | Act;
| ||||||
16 | (E-15) For taxable years beginning after December | ||||||
17 | 31, 2008, any deduction for dividends paid by a | ||||||
18 | captive real estate investment trust that is allowed | ||||||
19 | to a real estate investment trust under Section | ||||||
20 | 857(b)(2)(B) of the Internal Revenue Code for | ||||||
21 | dividends paid; | ||||||
22 | (E-16) An amount equal to the credit allowable to | ||||||
23 | the taxpayer under Section 218(a) of this Act, | ||||||
24 | determined without regard to Section 218(c) of this | ||||||
25 | Act; | ||||||
26 | (E-17) For taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2017, an amount equal to the deduction | ||||||
2 | allowed under Section 199 of the Internal Revenue Code | ||||||
3 | for the taxable year; | ||||||
4 | (E-18) for taxable years beginning after December | ||||||
5 | 31, 2018, an amount equal to the deduction allowed | ||||||
6 | under Section 250(a)(1)(A) of the Internal Revenue | ||||||
7 | Code for the taxable year. | ||||||
8 | and by deducting from the total so obtained the sum of the | ||||||
9 | following
amounts: | ||||||
10 | (F) An amount equal to the amount of any tax | ||||||
11 | imposed by this Act
which was refunded to the taxpayer | ||||||
12 | and included in such total for the
taxable year; | ||||||
13 | (G) An amount equal to any amount included in such | ||||||
14 | total under
Section 78 of the Internal Revenue Code; | ||||||
15 | (H) In the case of a regulated investment company, | ||||||
16 | an amount equal
to the amount of exempt interest | ||||||
17 | dividends as defined in subsection (b)(5) of Section | ||||||
18 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
19 | for the taxable year; | ||||||
20 | (I) With the exception of any amounts subtracted | ||||||
21 | under subparagraph
(J),
an amount equal to the sum of | ||||||
22 | all amounts disallowed as
deductions by (i) Sections | ||||||
23 | 171(a)(2) , and 265(a)(2) and amounts disallowed as
| ||||||
24 | interest expense by Section 291(a)(3) of the Internal | ||||||
25 | Revenue Code, and all amounts of expenses allocable to | ||||||
26 | interest and
disallowed as deductions by Section |
| |||||||
| |||||||
1 | 265(a)(1) of the Internal Revenue Code;
and (ii) for | ||||||
2 | taxable years
ending on or after August 13, 1999, | ||||||
3 | Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
4 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
5 | for tax years ending on or after December 31, 2011, | ||||||
6 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
7 | of the Internal Revenue Code and, for taxable years | ||||||
8 | ending on or after December 31, 2008, any amount | ||||||
9 | included in gross income under Section 87 of the | ||||||
10 | Internal Revenue Code and the policyholders' share of | ||||||
11 | tax-exempt interest of a life insurance company under | ||||||
12 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
13 | the case of a life insurance company with gross income | ||||||
14 | from a decrease in reserves for the tax year) or | ||||||
15 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
16 | the case of a life insurance company allowed a | ||||||
17 | deduction for an increase in reserves for the tax | ||||||
18 | year); the
provisions of this
subparagraph are exempt | ||||||
19 | from the provisions of Section 250; | ||||||
20 | (J) An amount equal to all amounts included in | ||||||
21 | such total which are
exempt from taxation by this | ||||||
22 | State either by reason of its statutes or
Constitution
| ||||||
23 | or by reason of the Constitution, treaties or statutes | ||||||
24 | of the United States;
provided that, in the case of any | ||||||
25 | statute of this State that exempts income
derived from | ||||||
26 | bonds or other obligations from the tax imposed under |
| |||||||
| |||||||
1 | this Act,
the amount exempted shall be the interest | ||||||
2 | net of bond premium amortization; | ||||||
3 | (K) An amount equal to those dividends included in | ||||||
4 | such total
which were paid by a corporation which | ||||||
5 | conducts
business operations in a River Edge | ||||||
6 | Redevelopment Zone or zones created under the River | ||||||
7 | Edge Redevelopment Zone Act and conducts substantially | ||||||
8 | all of its
operations in a River Edge Redevelopment | ||||||
9 | Zone or zones. This subparagraph (K) is exempt from | ||||||
10 | the provisions of Section 250; | ||||||
11 | (L) An amount equal to those dividends included in | ||||||
12 | such total that
were paid by a corporation that | ||||||
13 | conducts business operations in a federally
designated | ||||||
14 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
15 | a High Impact
Business located in Illinois; provided | ||||||
16 | that dividends eligible for the
deduction provided in | ||||||
17 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
18 | shall not be eligible for the deduction provided under | ||||||
19 | this subparagraph
(L); | ||||||
20 | (M) For any taxpayer that is a financial | ||||||
21 | organization within the meaning
of Section 304(c) of | ||||||
22 | this Act, an amount included in such total as interest
| ||||||
23 | income from a loan or loans made by such taxpayer to a | ||||||
24 | borrower, to the extent
that such a loan is secured by | ||||||
25 | property which is eligible for the River Edge | ||||||
26 | Redevelopment Zone Investment Credit. To determine the |
| |||||||
| |||||||
1 | portion of a loan or loans that is
secured by property | ||||||
2 | eligible for a Section 201(f) investment
credit to the | ||||||
3 | borrower, the entire principal amount of the loan or | ||||||
4 | loans
between the taxpayer and the borrower should be | ||||||
5 | divided into the basis of the
Section 201(f) | ||||||
6 | investment credit property which secures the
loan or | ||||||
7 | loans, using for this purpose the original basis of | ||||||
8 | such property on
the date that it was placed in service | ||||||
9 | in the River Edge Redevelopment Zone. The subtraction | ||||||
10 | modification available to the taxpayer in any
year | ||||||
11 | under this subsection shall be that portion of the | ||||||
12 | total interest paid
by the borrower with respect to | ||||||
13 | such loan attributable to the eligible
property as | ||||||
14 | calculated under the previous sentence. This | ||||||
15 | subparagraph (M) is exempt from the provisions of | ||||||
16 | Section 250; | ||||||
17 | (M-1) For any taxpayer that is a financial | ||||||
18 | organization within the
meaning of Section 304(c) of | ||||||
19 | this Act, an amount included in such total as
interest | ||||||
20 | income from a loan or loans made by such taxpayer to a | ||||||
21 | borrower,
to the extent that such a loan is secured by | ||||||
22 | property which is eligible for
the High Impact | ||||||
23 | Business Investment Credit. To determine the portion | ||||||
24 | of a
loan or loans that is secured by property eligible | ||||||
25 | for a Section 201(h) investment credit to the | ||||||
26 | borrower, the entire principal amount of
the loan or |
| |||||||
| |||||||
1 | loans between the taxpayer and the borrower should be | ||||||
2 | divided into
the basis of the Section 201(h) | ||||||
3 | investment credit property which
secures the loan or | ||||||
4 | loans, using for this purpose the original basis of | ||||||
5 | such
property on the date that it was placed in service | ||||||
6 | in a federally designated
Foreign Trade Zone or | ||||||
7 | Sub-Zone located in Illinois. No taxpayer that is
| ||||||
8 | eligible for the deduction provided in subparagraph | ||||||
9 | (M) of paragraph (2) of
this subsection shall be | ||||||
10 | eligible for the deduction provided under this
| ||||||
11 | subparagraph (M-1). The subtraction modification | ||||||
12 | available to taxpayers in
any year under this | ||||||
13 | subsection shall be that portion of the total interest
| ||||||
14 | paid by the borrower with respect to such loan | ||||||
15 | attributable to the eligible
property as calculated | ||||||
16 | under the previous sentence; | ||||||
17 | (N) Two times any contribution made during the | ||||||
18 | taxable year to a
designated zone organization to the | ||||||
19 | extent that the contribution (i)
qualifies as a | ||||||
20 | charitable contribution under subsection (c) of | ||||||
21 | Section 170
of the Internal Revenue Code and (ii) | ||||||
22 | must, by its terms, be used for a
project approved by | ||||||
23 | the Department of Commerce and Economic Opportunity | ||||||
24 | under Section 11 of the Illinois Enterprise Zone Act | ||||||
25 | or under Section 10-10 of the River Edge Redevelopment | ||||||
26 | Zone Act. This subparagraph (N) is exempt from the |
| |||||||
| |||||||
1 | provisions of Section 250; | ||||||
2 | (O) An amount equal to: (i) 85% for taxable years | ||||||
3 | ending on or before
December 31, 1992, or, a | ||||||
4 | percentage equal to the percentage allowable under
| ||||||
5 | Section 243(a)(1) of the Internal Revenue Code of 1986 | ||||||
6 | for taxable years ending
after December 31, 1992, of | ||||||
7 | the amount by which dividends included in taxable
| ||||||
8 | income and received from a corporation that is not | ||||||
9 | created or organized under
the laws of the United | ||||||
10 | States or any state or political subdivision thereof,
| ||||||
11 | including, for taxable years ending on or after | ||||||
12 | December 31, 1988, dividends
received or deemed | ||||||
13 | received or paid or deemed paid under Sections 951 | ||||||
14 | through
965 of the Internal Revenue Code, exceed the | ||||||
15 | amount of the modification
provided under subparagraph | ||||||
16 | (G) of paragraph (2) of this subsection (b) which
is | ||||||
17 | related to such dividends, and including, for taxable | ||||||
18 | years ending on or after December 31, 2008, dividends | ||||||
19 | received from a captive real estate investment trust; | ||||||
20 | plus (ii) 100% of the amount by which dividends,
| ||||||
21 | included in taxable income and received, including, | ||||||
22 | for taxable years ending on
or after December 31, | ||||||
23 | 1988, dividends received or deemed received or paid or
| ||||||
24 | deemed paid under Sections 951 through 964 of the | ||||||
25 | Internal Revenue Code and including, for taxable years | ||||||
26 | ending on or after December 31, 2008, dividends |
| |||||||
| |||||||
1 | received from a captive real estate investment trust, | ||||||
2 | from
any such corporation specified in clause (i) that | ||||||
3 | would but for the provisions
of Section 1504(b)(3) of | ||||||
4 | the Internal Revenue Code be treated as a member of
the | ||||||
5 | affiliated group which includes the dividend | ||||||
6 | recipient, exceed the amount
of the modification | ||||||
7 | provided under subparagraph (G) of paragraph (2) of | ||||||
8 | this
subsection (b) which is related to such | ||||||
9 | dividends. This subparagraph (O) is exempt from the | ||||||
10 | provisions of Section 250 of this Act; | ||||||
11 | (P) An amount equal to any contribution made to a | ||||||
12 | job training project
established pursuant to the Tax | ||||||
13 | Increment Allocation Redevelopment Act; | ||||||
14 | (Q) An amount equal to the amount of the deduction | ||||||
15 | used to compute the
federal income tax credit for | ||||||
16 | restoration of substantial amounts held under
claim of | ||||||
17 | right for the taxable year pursuant to Section 1341 of | ||||||
18 | the
Internal Revenue Code; | ||||||
19 | (R) On and after July 20, 1999, in the case of an | ||||||
20 | attorney-in-fact with respect to whom an
interinsurer | ||||||
21 | or a reciprocal insurer has made the election under | ||||||
22 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
23 | 835, an amount equal to the excess, if
any, of the | ||||||
24 | amounts paid or incurred by that interinsurer or | ||||||
25 | reciprocal insurer
in the taxable year to the | ||||||
26 | attorney-in-fact over the deduction allowed to that
|
| |||||||
| |||||||
1 | interinsurer or reciprocal insurer with respect to the | ||||||
2 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
3 | Revenue Code for the taxable year; the provisions of | ||||||
4 | this subparagraph are exempt from the provisions of | ||||||
5 | Section 250; | ||||||
6 | (S) For taxable years ending on or after December | ||||||
7 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
8 | amount equal to all amounts of income allocable to a
| ||||||
9 | shareholder subject to the Personal Property Tax | ||||||
10 | Replacement Income Tax imposed
by subsections (c) and | ||||||
11 | (d) of Section 201 of this Act, including amounts
| ||||||
12 | allocable to organizations exempt from federal income | ||||||
13 | tax by reason of Section
501(a) of the Internal | ||||||
14 | Revenue Code. This subparagraph (S) is exempt from
the | ||||||
15 | provisions of Section 250; | ||||||
16 | (T) For taxable years 2001 and thereafter, for the | ||||||
17 | taxable year in
which the bonus depreciation deduction
| ||||||
18 | is taken on the taxpayer's federal income tax return | ||||||
19 | under
subsection (k) of Section 168 of the Internal | ||||||
20 | Revenue Code and for each
applicable taxable year | ||||||
21 | thereafter, an amount equal to "x", where: | ||||||
22 | (1) "y" equals the amount of the depreciation | ||||||
23 | deduction taken for the
taxable year
on the | ||||||
24 | taxpayer's federal income tax return on property | ||||||
25 | for which the bonus
depreciation deduction
was | ||||||
26 | taken in any year under subsection (k) of Section |
| |||||||
| |||||||
1 | 168 of the Internal
Revenue Code, but not | ||||||
2 | including the bonus depreciation deduction; | ||||||
3 | (2) for taxable years ending on or before | ||||||
4 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
5 | and then divided by 70 (or "y"
multiplied by | ||||||
6 | 0.429); and | ||||||
7 | (3) for taxable years ending after December | ||||||
8 | 31, 2005: | ||||||
9 | (i) for property on which a bonus | ||||||
10 | depreciation deduction of 30% of the adjusted | ||||||
11 | basis was taken, "x" equals "y" multiplied by | ||||||
12 | 30 and then divided by 70 (or "y"
multiplied | ||||||
13 | by 0.429); and | ||||||
14 | (ii) for property on which a bonus | ||||||
15 | depreciation deduction of 50% of the adjusted | ||||||
16 | basis was taken, "x" equals "y" multiplied by | ||||||
17 | 1.0. | ||||||
18 | The aggregate amount deducted under this | ||||||
19 | subparagraph in all taxable
years for any one piece of | ||||||
20 | property may not exceed the amount of the bonus
| ||||||
21 | depreciation deduction
taken on that property on the | ||||||
22 | taxpayer's federal income tax return under
subsection | ||||||
23 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
24 | subparagraph (T) is exempt from the provisions of | ||||||
25 | Section 250; | ||||||
26 | (U) If the taxpayer sells, transfers, abandons, or |
| |||||||
| |||||||
1 | otherwise disposes of
property for which the taxpayer | ||||||
2 | was required in any taxable year to make an
addition | ||||||
3 | modification under subparagraph (E-10), then an amount | ||||||
4 | equal to that
addition modification. | ||||||
5 | If the taxpayer continues to own property through | ||||||
6 | the last day of the last tax year for which the | ||||||
7 | taxpayer may claim a depreciation deduction for | ||||||
8 | federal income tax purposes and for which the taxpayer | ||||||
9 | was required in any taxable year to make an addition | ||||||
10 | modification under subparagraph (E-10), then an amount | ||||||
11 | equal to that addition modification.
| ||||||
12 | The taxpayer is allowed to take the deduction | ||||||
13 | under this subparagraph
only once with respect to any | ||||||
14 | one piece of property. | ||||||
15 | This subparagraph (U) is exempt from the | ||||||
16 | provisions of Section 250; | ||||||
17 | (V) The amount of: (i) any interest income (net of | ||||||
18 | the deductions allocable thereto) taken into account | ||||||
19 | for the taxable year with respect to a transaction | ||||||
20 | with a taxpayer that is required to make an addition | ||||||
21 | modification with respect to such transaction under | ||||||
22 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
23 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
24 | the amount of such addition modification,
(ii) any | ||||||
25 | income from intangible property (net of the deductions | ||||||
26 | allocable thereto) taken into account for the taxable |
| |||||||
| |||||||
1 | year with respect to a transaction with a taxpayer | ||||||
2 | that is required to make an addition modification with | ||||||
3 | respect to such transaction under Section | ||||||
4 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
5 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
6 | addition modification, and (iii) any insurance premium | ||||||
7 | income (net of deductions allocable thereto) taken | ||||||
8 | into account for the taxable year with respect to a | ||||||
9 | transaction with a taxpayer that is required to make | ||||||
10 | an addition modification with respect to such | ||||||
11 | transaction under Section 203(a)(2)(D-19), Section | ||||||
12 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
13 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
14 | addition modification. This subparagraph (V) is exempt | ||||||
15 | from the provisions of Section 250;
| ||||||
16 | (W) An amount equal to the interest income taken | ||||||
17 | into account for the taxable year (net of the | ||||||
18 | deductions allocable thereto) with respect to | ||||||
19 | transactions with (i) a foreign person who would be a | ||||||
20 | member of the taxpayer's unitary business group but | ||||||
21 | for the fact that the foreign person's business | ||||||
22 | activity outside the United States is 80% or more of | ||||||
23 | that person's total business activity and (ii) for | ||||||
24 | taxable years ending on or after December 31, 2008, to | ||||||
25 | a person who would be a member of the same unitary | ||||||
26 | business group but for the fact that the person is |
| |||||||
| |||||||
1 | prohibited under Section 1501(a)(27) from being | ||||||
2 | included in the unitary business group because he or | ||||||
3 | she is ordinarily required to apportion business | ||||||
4 | income under different subsections of Section 304, but | ||||||
5 | not to exceed the addition modification required to be | ||||||
6 | made for the same taxable year under Section | ||||||
7 | 203(b)(2)(E-12) for interest paid, accrued, or | ||||||
8 | incurred, directly or indirectly, to the same person. | ||||||
9 | This subparagraph (W) is exempt from the provisions of | ||||||
10 | Section 250;
| ||||||
11 | (X) An amount equal to the income from intangible | ||||||
12 | property taken into account for the taxable year (net | ||||||
13 | of the deductions allocable thereto) with respect to | ||||||
14 | transactions with (i) a foreign person who would be a | ||||||
15 | member of the taxpayer's unitary business group but | ||||||
16 | for the fact that the foreign person's business | ||||||
17 | activity outside the United States is 80% or more of | ||||||
18 | that person's total business activity and (ii) for | ||||||
19 | taxable years ending on or after December 31, 2008, to | ||||||
20 | a person who would be a member of the same unitary | ||||||
21 | business group but for the fact that the person is | ||||||
22 | prohibited under Section 1501(a)(27) from being | ||||||
23 | included in the unitary business group because he or | ||||||
24 | she is ordinarily required to apportion business | ||||||
25 | income under different subsections of Section 304, but | ||||||
26 | not to exceed the addition modification required to be |
| |||||||
| |||||||
1 | made for the same taxable year under Section | ||||||
2 | 203(b)(2)(E-13) for intangible expenses and costs | ||||||
3 | paid, accrued, or incurred, directly or indirectly, to | ||||||
4 | the same foreign person. This subparagraph (X) is | ||||||
5 | exempt from the provisions of Section 250;
| ||||||
6 | (Y) For taxable years ending on or after December | ||||||
7 | 31, 2011, in the case of a taxpayer who was required to | ||||||
8 | add back any insurance premiums under Section | ||||||
9 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
10 | that part of a reimbursement received from the | ||||||
11 | insurance company equal to the amount of the expense | ||||||
12 | or loss (including expenses incurred by the insurance | ||||||
13 | company) that would have been taken into account as a | ||||||
14 | deduction for federal income tax purposes if the | ||||||
15 | expense or loss had been uninsured. If a taxpayer | ||||||
16 | makes the election provided for by this subparagraph | ||||||
17 | (Y), the insurer to which the premiums were paid must | ||||||
18 | add back to income the amount subtracted by the | ||||||
19 | taxpayer pursuant to this subparagraph (Y). This | ||||||
20 | subparagraph (Y) is exempt from the provisions of | ||||||
21 | Section 250; and | ||||||
22 | (Z) The difference between the nondeductible | ||||||
23 | controlled foreign corporation dividends under Section | ||||||
24 | 965(e)(3) of the Internal Revenue Code over the | ||||||
25 | taxable income of the taxpayer, computed without | ||||||
26 | regard to Section 965(e)(2)(A) of the Internal Revenue |
| |||||||
| |||||||
1 | Code, and without regard to any net operating loss | ||||||
2 | deduction. This subparagraph (Z) is exempt from the | ||||||
3 | provisions of Section 250. | ||||||
4 | (AA) Any grant amounts received as an eligible | ||||||
5 | entity under the Real Economic Support That | ||||||
6 | Acknowledges Unique Restaurant Assistance Needed To | ||||||
7 | Survive (RESTAURANTS) Act. | ||||||
8 | (3) Special rule. For purposes of paragraph (2)(A), | ||||||
9 | "gross income"
in the case of a life insurance company, | ||||||
10 | for tax years ending on and after
December 31, 1994,
and | ||||||
11 | prior to December 31, 2011, shall mean the gross | ||||||
12 | investment income for the taxable year and, for tax years | ||||||
13 | ending on or after December 31, 2011, shall mean all | ||||||
14 | amounts included in life insurance gross income under | ||||||
15 | Section 803(a)(3) of the Internal Revenue Code.
| ||||||
16 | (c) Trusts and estates. | ||||||
17 | (1) In general. In the case of a trust or estate, base | ||||||
18 | income means
an amount equal to the taxpayer's taxable | ||||||
19 | income for the taxable year as
modified by paragraph (2). | ||||||
20 | (2) Modifications. Subject to the provisions of | ||||||
21 | paragraph (3), the
taxable income referred to in paragraph | ||||||
22 | (1) shall be modified by adding
thereto the sum of the | ||||||
23 | following amounts: | ||||||
24 | (A) An amount equal to all amounts paid or accrued | ||||||
25 | to the taxpayer
as interest or dividends during the |
| |||||||
| |||||||
1 | taxable year to the extent excluded
from gross income | ||||||
2 | in the computation of taxable income; | ||||||
3 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
4 | trust which, under
its governing instrument, is | ||||||
5 | required to distribute all of its income
currently, | ||||||
6 | $300; and (iii) any other trust, $100, but in each such | ||||||
7 | case,
only to the extent such amount was deducted in | ||||||
8 | the computation of
taxable income; | ||||||
9 | (C) An amount equal to the amount of tax imposed by | ||||||
10 | this Act to the
extent deducted from gross income in | ||||||
11 | the computation of taxable income
for the taxable | ||||||
12 | year; | ||||||
13 | (D) The amount of any net operating loss deduction | ||||||
14 | taken in arriving at
taxable income, other than a net | ||||||
15 | operating loss carried forward from a
taxable year | ||||||
16 | ending prior to December 31, 1986; | ||||||
17 | (E) For taxable years in which a net operating | ||||||
18 | loss carryback or
carryforward from a taxable year | ||||||
19 | ending prior to December 31, 1986 is an
element of | ||||||
20 | taxable income under paragraph (1) of subsection (e) | ||||||
21 | or subparagraph
(E) of paragraph (2) of subsection | ||||||
22 | (e), the amount by which addition
modifications other | ||||||
23 | than those provided by this subparagraph (E) exceeded
| ||||||
24 | subtraction modifications in such taxable year, with | ||||||
25 | the following limitations
applied in the order that | ||||||
26 | they are listed: |
| |||||||
| |||||||
1 | (i) the addition modification relating to the | ||||||
2 | net operating loss
carried back or forward to the | ||||||
3 | taxable year from any taxable year ending
prior to | ||||||
4 | December 31, 1986 shall be reduced by the amount | ||||||
5 | of addition
modification under this subparagraph | ||||||
6 | (E) which related to that net
operating loss and | ||||||
7 | which was taken into account in calculating the | ||||||
8 | base
income of an earlier taxable year, and | ||||||
9 | (ii) the addition modification relating to the | ||||||
10 | net operating loss
carried back or forward to the | ||||||
11 | taxable year from any taxable year ending
prior to | ||||||
12 | December 31, 1986 shall not exceed the amount of | ||||||
13 | such carryback or
carryforward; | ||||||
14 | For taxable years in which there is a net | ||||||
15 | operating loss carryback or
carryforward from more | ||||||
16 | than one other taxable year ending prior to December
| ||||||
17 | 31, 1986, the addition modification provided in this | ||||||
18 | subparagraph (E) shall
be the sum of the amounts | ||||||
19 | computed independently under the preceding
provisions | ||||||
20 | of this subparagraph (E) for each such taxable year; | ||||||
21 | (F) For taxable years ending on or after January | ||||||
22 | 1, 1989, an amount
equal to the tax deducted pursuant | ||||||
23 | to Section 164 of the Internal Revenue
Code if the | ||||||
24 | trust or estate is claiming the same tax for purposes | ||||||
25 | of the
Illinois foreign tax credit under Section 601 | ||||||
26 | of this Act; |
| |||||||
| |||||||
1 | (G) An amount equal to the amount of the capital | ||||||
2 | gain deduction
allowable under the Internal Revenue | ||||||
3 | Code, to the extent deducted from
gross income in the | ||||||
4 | computation of taxable income; | ||||||
5 | (G-5) For taxable years ending after December 31, | ||||||
6 | 1997, an
amount equal to any eligible remediation | ||||||
7 | costs that the trust or estate
deducted in computing | ||||||
8 | adjusted gross income and for which the trust
or | ||||||
9 | estate claims a credit under subsection (l) of Section | ||||||
10 | 201; | ||||||
11 | (G-10) For taxable years 2001 and thereafter, an | ||||||
12 | amount equal to the
bonus depreciation deduction taken | ||||||
13 | on the taxpayer's federal income tax return for the | ||||||
14 | taxable
year under subsection (k) of Section 168 of | ||||||
15 | the Internal Revenue Code; and | ||||||
16 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
17 | or otherwise disposes of property for which the | ||||||
18 | taxpayer was required in any taxable year to
make an | ||||||
19 | addition modification under subparagraph (G-10), then | ||||||
20 | an amount equal
to the aggregate amount of the | ||||||
21 | deductions taken in all taxable
years under | ||||||
22 | subparagraph (R) with respect to that property. | ||||||
23 | If the taxpayer continues to own property through | ||||||
24 | the last day of the last tax year for which the | ||||||
25 | taxpayer may claim a depreciation deduction for | ||||||
26 | federal income tax purposes and for which the taxpayer |
| |||||||
| |||||||
1 | was allowed in any taxable year to make a subtraction | ||||||
2 | modification under subparagraph (R), then an amount | ||||||
3 | equal to that subtraction modification.
| ||||||
4 | The taxpayer is required to make the addition | ||||||
5 | modification under this
subparagraph
only once with | ||||||
6 | respect to any one piece of property; | ||||||
7 | (G-12) An amount equal to the amount otherwise | ||||||
8 | allowed as a deduction in computing base income for | ||||||
9 | interest paid, accrued, or incurred, directly or | ||||||
10 | indirectly, (i) for taxable years ending on or after | ||||||
11 | December 31, 2004, to a foreign person who would be a | ||||||
12 | member of the same unitary business group but for the | ||||||
13 | fact that the foreign person's business activity | ||||||
14 | outside the United States is 80% or more of the foreign | ||||||
15 | person's total business activity and (ii) for taxable | ||||||
16 | years ending on or after December 31, 2008, to a person | ||||||
17 | who would be a member of the same unitary business | ||||||
18 | group but for the fact that the person is prohibited | ||||||
19 | under Section 1501(a)(27) from being included in the | ||||||
20 | unitary business group because he or she is ordinarily | ||||||
21 | required to apportion business income under different | ||||||
22 | subsections of Section 304. The addition modification | ||||||
23 | required by this subparagraph shall be reduced to the | ||||||
24 | extent that dividends were included in base income of | ||||||
25 | the unitary group for the same taxable year and | ||||||
26 | received by the taxpayer or by a member of the |
| |||||||
| |||||||
1 | taxpayer's unitary business group (including amounts | ||||||
2 | included in gross income pursuant to Sections 951 | ||||||
3 | through 964 of the Internal Revenue Code and amounts | ||||||
4 | included in gross income under Section 78 of the | ||||||
5 | Internal Revenue Code) with respect to the stock of | ||||||
6 | the same person to whom the interest was paid, | ||||||
7 | accrued, or incurred.
| ||||||
8 | This paragraph shall not apply to the following:
| ||||||
9 | (i) an item of interest paid, accrued, or | ||||||
10 | incurred, directly or indirectly, to a person who | ||||||
11 | is subject in a foreign country or state, other | ||||||
12 | than a state which requires mandatory unitary | ||||||
13 | reporting, to a tax on or measured by net income | ||||||
14 | with respect to such interest; or | ||||||
15 | (ii) an item of interest paid, accrued, or | ||||||
16 | incurred, directly or indirectly, to a person if | ||||||
17 | the taxpayer can establish, based on a | ||||||
18 | preponderance of the evidence, both of the | ||||||
19 | following: | ||||||
20 | (a) the person, during the same taxable | ||||||
21 | year, paid, accrued, or incurred, the interest | ||||||
22 | to a person that is not a related member, and | ||||||
23 | (b) the transaction giving rise to the | ||||||
24 | interest expense between the taxpayer and the | ||||||
25 | person did not have as a principal purpose the | ||||||
26 | avoidance of Illinois income tax, and is paid |
| |||||||
| |||||||
1 | pursuant to a contract or agreement that | ||||||
2 | reflects an arm's-length interest rate and | ||||||
3 | terms; or
| ||||||
4 | (iii) the taxpayer can establish, based on | ||||||
5 | clear and convincing evidence, that the interest | ||||||
6 | paid, accrued, or incurred relates to a contract | ||||||
7 | or agreement entered into at arm's-length rates | ||||||
8 | and terms and the principal purpose for the | ||||||
9 | payment is not federal or Illinois tax avoidance; | ||||||
10 | or
| ||||||
11 | (iv) an item of interest paid, accrued, or | ||||||
12 | incurred, directly or indirectly, to a person if | ||||||
13 | the taxpayer establishes by clear and convincing | ||||||
14 | evidence that the adjustments are unreasonable; or | ||||||
15 | if the taxpayer and the Director agree in writing | ||||||
16 | to the application or use of an alternative method | ||||||
17 | of apportionment under Section 304(f).
| ||||||
18 | Nothing in this subsection shall preclude the | ||||||
19 | Director from making any other adjustment | ||||||
20 | otherwise allowed under Section 404 of this Act | ||||||
21 | for any tax year beginning after the effective | ||||||
22 | date of this amendment provided such adjustment is | ||||||
23 | made pursuant to regulation adopted by the | ||||||
24 | Department and such regulations provide methods | ||||||
25 | and standards by which the Department will utilize | ||||||
26 | its authority under Section 404 of this Act;
|
| |||||||
| |||||||
1 | (G-13) An amount equal to the amount of intangible | ||||||
2 | expenses and costs otherwise allowed as a deduction in | ||||||
3 | computing base income, and that were paid, accrued, or | ||||||
4 | incurred, directly or indirectly, (i) for taxable | ||||||
5 | years ending on or after December 31, 2004, to a | ||||||
6 | foreign person who would be a member of the same | ||||||
7 | unitary business group but for the fact that the | ||||||
8 | foreign person's business activity outside the United | ||||||
9 | States is 80% or more of that person's total business | ||||||
10 | activity and (ii) for taxable years ending on or after | ||||||
11 | December 31, 2008, to a person who would be a member of | ||||||
12 | the same unitary business group but for the fact that | ||||||
13 | the person is prohibited under Section 1501(a)(27) | ||||||
14 | from being included in the unitary business group | ||||||
15 | because he or she is ordinarily required to apportion | ||||||
16 | business income under different subsections of Section | ||||||
17 | 304. The addition modification required by this | ||||||
18 | subparagraph shall be reduced to the extent that | ||||||
19 | dividends were included in base income of the unitary | ||||||
20 | group for the same taxable year and received by the | ||||||
21 | taxpayer or by a member of the taxpayer's unitary | ||||||
22 | business group (including amounts included in gross | ||||||
23 | income pursuant to Sections 951 through 964 of the | ||||||
24 | Internal Revenue Code and amounts included in gross | ||||||
25 | income under Section 78 of the Internal Revenue Code) | ||||||
26 | with respect to the stock of the same person to whom |
| |||||||
| |||||||
1 | the intangible expenses and costs were directly or | ||||||
2 | indirectly paid, incurred, or accrued. The preceding | ||||||
3 | sentence shall not apply to the extent that the same | ||||||
4 | dividends caused a reduction to the addition | ||||||
5 | modification required under Section 203(c)(2)(G-12) of | ||||||
6 | this Act. As used in this subparagraph, the term | ||||||
7 | "intangible expenses and costs" includes: (1) | ||||||
8 | expenses, losses, and costs for or related to the | ||||||
9 | direct or indirect acquisition, use, maintenance or | ||||||
10 | management, ownership, sale, exchange, or any other | ||||||
11 | disposition of intangible property; (2) losses | ||||||
12 | incurred, directly or indirectly, from factoring | ||||||
13 | transactions or discounting transactions; (3) royalty, | ||||||
14 | patent, technical, and copyright fees; (4) licensing | ||||||
15 | fees; and (5) other similar expenses and costs. For | ||||||
16 | purposes of this subparagraph, "intangible property" | ||||||
17 | includes patents, patent applications, trade names, | ||||||
18 | trademarks, service marks, copyrights, mask works, | ||||||
19 | trade secrets, and similar types of intangible assets. | ||||||
20 | This paragraph shall not apply to the following: | ||||||
21 | (i) any item of intangible expenses or costs | ||||||
22 | paid, accrued, or incurred, directly or | ||||||
23 | indirectly, from a transaction with a person who | ||||||
24 | is subject in a foreign country or state, other | ||||||
25 | than a state which requires mandatory unitary | ||||||
26 | reporting, to a tax on or measured by net income |
| |||||||
| |||||||
1 | with respect to such item; or | ||||||
2 | (ii) any item of intangible expense or cost | ||||||
3 | paid, accrued, or incurred, directly or | ||||||
4 | indirectly, if the taxpayer can establish, based | ||||||
5 | on a preponderance of the evidence, both of the | ||||||
6 | following: | ||||||
7 | (a) the person during the same taxable | ||||||
8 | year paid, accrued, or incurred, the | ||||||
9 | intangible expense or cost to a person that is | ||||||
10 | not a related member, and | ||||||
11 | (b) the transaction giving rise to the | ||||||
12 | intangible expense or cost between the | ||||||
13 | taxpayer and the person did not have as a | ||||||
14 | principal purpose the avoidance of Illinois | ||||||
15 | income tax, and is paid pursuant to a contract | ||||||
16 | or agreement that reflects arm's-length terms; | ||||||
17 | or | ||||||
18 | (iii) any item of intangible expense or cost | ||||||
19 | paid, accrued, or incurred, directly or | ||||||
20 | indirectly, from a transaction with a person if | ||||||
21 | the taxpayer establishes by clear and convincing | ||||||
22 | evidence, that the adjustments are unreasonable; | ||||||
23 | or if the taxpayer and the Director agree in | ||||||
24 | writing to the application or use of an | ||||||
25 | alternative method of apportionment under Section | ||||||
26 | 304(f);
|
| |||||||
| |||||||
1 | Nothing in this subsection shall preclude the | ||||||
2 | Director from making any other adjustment | ||||||
3 | otherwise allowed under Section 404 of this Act | ||||||
4 | for any tax year beginning after the effective | ||||||
5 | date of this amendment provided such adjustment is | ||||||
6 | made pursuant to regulation adopted by the | ||||||
7 | Department and such regulations provide methods | ||||||
8 | and standards by which the Department will utilize | ||||||
9 | its authority under Section 404 of this Act;
| ||||||
10 | (G-14) For taxable years ending on or after | ||||||
11 | December 31, 2008, an amount equal to the amount of | ||||||
12 | insurance premium expenses and costs otherwise allowed | ||||||
13 | as a deduction in computing base income, and that were | ||||||
14 | paid, accrued, or incurred, directly or indirectly, to | ||||||
15 | a person who would be a member of the same unitary | ||||||
16 | business group but for the fact that the person is | ||||||
17 | prohibited under Section 1501(a)(27) from being | ||||||
18 | included in the unitary business group because he or | ||||||
19 | she is ordinarily required to apportion business | ||||||
20 | income under different subsections of Section 304. The | ||||||
21 | addition modification required by this subparagraph | ||||||
22 | shall be reduced to the extent that dividends were | ||||||
23 | included in base income of the unitary group for the | ||||||
24 | same taxable year and received by the taxpayer or by a | ||||||
25 | member of the taxpayer's unitary business group | ||||||
26 | (including amounts included in gross income under |
| |||||||
| |||||||
1 | Sections 951 through 964 of the Internal Revenue Code | ||||||
2 | and amounts included in gross income under Section 78 | ||||||
3 | of the Internal Revenue Code) with respect to the | ||||||
4 | stock of the same person to whom the premiums and costs | ||||||
5 | were directly or indirectly paid, incurred, or | ||||||
6 | accrued. The preceding sentence does not apply to the | ||||||
7 | extent that the same dividends caused a reduction to | ||||||
8 | the addition modification required under Section | ||||||
9 | 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this | ||||||
10 | Act; | ||||||
11 | (G-15) An amount equal to the credit allowable to | ||||||
12 | the taxpayer under Section 218(a) of this Act, | ||||||
13 | determined without regard to Section 218(c) of this | ||||||
14 | Act; | ||||||
15 | (G-16) For taxable years ending on or after | ||||||
16 | December 31, 2017, an amount equal to the deduction | ||||||
17 | allowed under Section 199 of the Internal Revenue Code | ||||||
18 | for the taxable year; | ||||||
19 | and by deducting from the total so obtained the sum of the | ||||||
20 | following
amounts: | ||||||
21 | (H) An amount equal to all amounts included in | ||||||
22 | such total pursuant
to the provisions of Sections | ||||||
23 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 | ||||||
24 | of the Internal Revenue Code or included in such total | ||||||
25 | as
distributions under the provisions of any | ||||||
26 | retirement or disability plan for
employees of any |
| |||||||
| |||||||
1 | governmental agency or unit, or retirement payments to
| ||||||
2 | retired partners, which payments are excluded in | ||||||
3 | computing net earnings
from self employment by Section | ||||||
4 | 1402 of the Internal Revenue Code and
regulations | ||||||
5 | adopted pursuant thereto; | ||||||
6 | (I) The valuation limitation amount; | ||||||
7 | (J) An amount equal to the amount of any tax | ||||||
8 | imposed by this Act
which was refunded to the taxpayer | ||||||
9 | and included in such total for the
taxable year; | ||||||
10 | (K) An amount equal to all amounts included in | ||||||
11 | taxable income as
modified by subparagraphs (A), (B), | ||||||
12 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
13 | taxation by this State either by reason of its | ||||||
14 | statutes or
Constitution
or by reason of the | ||||||
15 | Constitution, treaties or statutes of the United | ||||||
16 | States;
provided that, in the case of any statute of | ||||||
17 | this State that exempts income
derived from bonds or | ||||||
18 | other obligations from the tax imposed under this Act,
| ||||||
19 | the amount exempted shall be the interest net of bond | ||||||
20 | premium amortization; | ||||||
21 | (L) With the exception of any amounts subtracted | ||||||
22 | under subparagraph
(K),
an amount equal to the sum of | ||||||
23 | all amounts disallowed as
deductions by (i) Sections | ||||||
24 | 171(a)(2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
25 | and all amounts of expenses allocable
to interest and | ||||||
26 | disallowed as deductions by Section 265(a)(1) of the |
| |||||||
| |||||||
1 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
2 | ending on or after August 13, 1999, Sections
| ||||||
3 | 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||||||
4 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
5 | ending on or after December 31, 2011, Section | ||||||
6 | 45G(e)(3) of the Internal Revenue Code and, for | ||||||
7 | taxable years ending on or after December 31, 2008, | ||||||
8 | any amount included in gross income under Section 87 | ||||||
9 | of the Internal Revenue Code; the provisions of this
| ||||||
10 | subparagraph are exempt from the provisions of Section | ||||||
11 | 250; | ||||||
12 | (M) An amount equal to those dividends included in | ||||||
13 | such total
which were paid by a corporation which | ||||||
14 | conducts business operations in a River Edge | ||||||
15 | Redevelopment Zone or zones created under the River | ||||||
16 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
17 | all of its operations in a River Edge Redevelopment | ||||||
18 | Zone or zones. This subparagraph (M) is exempt from | ||||||
19 | the provisions of Section 250; | ||||||
20 | (N) An amount equal to any contribution made to a | ||||||
21 | job training
project established pursuant to the Tax | ||||||
22 | Increment Allocation
Redevelopment Act; | ||||||
23 | (O) An amount equal to those dividends included in | ||||||
24 | such total
that were paid by a corporation that | ||||||
25 | conducts business operations in a
federally designated | ||||||
26 | Foreign Trade Zone or Sub-Zone and that is designated
|
| |||||||
| |||||||
1 | a High Impact Business located in Illinois; provided | ||||||
2 | that dividends eligible
for the deduction provided in | ||||||
3 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
4 | shall not be eligible for the deduction provided under | ||||||
5 | this
subparagraph (O); | ||||||
6 | (P) An amount equal to the amount of the deduction | ||||||
7 | used to compute the
federal income tax credit for | ||||||
8 | restoration of substantial amounts held under
claim of | ||||||
9 | right for the taxable year pursuant to Section 1341 of | ||||||
10 | the
Internal Revenue Code; | ||||||
11 | (Q) For taxable year 1999 and thereafter, an | ||||||
12 | amount equal to the
amount of any
(i) distributions, | ||||||
13 | to the extent includible in gross income for
federal | ||||||
14 | income tax purposes, made to the taxpayer because of
| ||||||
15 | his or her status as a victim of
persecution for racial | ||||||
16 | or religious reasons by Nazi Germany or any other Axis
| ||||||
17 | regime or as an heir of the victim and (ii) items
of | ||||||
18 | income, to the extent
includible in gross income for | ||||||
19 | federal income tax purposes, attributable to,
derived | ||||||
20 | from or in any way related to assets stolen from, | ||||||
21 | hidden from, or
otherwise lost to a victim of
| ||||||
22 | persecution for racial or religious reasons by Nazi
| ||||||
23 | Germany or any other Axis regime
immediately prior to, | ||||||
24 | during, and immediately after World War II, including,
| ||||||
25 | but
not limited to, interest on the proceeds | ||||||
26 | receivable as insurance
under policies issued to a |
| |||||||
| |||||||
1 | victim of persecution for racial or religious
reasons | ||||||
2 | by Nazi Germany or any other Axis regime by European | ||||||
3 | insurance
companies
immediately prior to and during | ||||||
4 | World War II;
provided, however, this subtraction from | ||||||
5 | federal adjusted gross income does not
apply to assets | ||||||
6 | acquired with such assets or with the proceeds from | ||||||
7 | the sale of
such assets; provided, further, this | ||||||
8 | paragraph shall only apply to a taxpayer
who was the | ||||||
9 | first recipient of such assets after their recovery | ||||||
10 | and who is a
victim of
persecution for racial or | ||||||
11 | religious reasons
by Nazi Germany or any other Axis | ||||||
12 | regime or as an heir of the victim. The
amount of and | ||||||
13 | the eligibility for any public assistance, benefit, or
| ||||||
14 | similar entitlement is not affected by the inclusion | ||||||
15 | of items (i) and (ii) of
this paragraph in gross income | ||||||
16 | for federal income tax purposes.
This paragraph is | ||||||
17 | exempt from the provisions of Section 250; | ||||||
18 | (R) For taxable years 2001 and thereafter, for the | ||||||
19 | taxable year in
which the bonus depreciation deduction
| ||||||
20 | is taken on the taxpayer's federal income tax return | ||||||
21 | under
subsection (k) of Section 168 of the Internal | ||||||
22 | Revenue Code and for each
applicable taxable year | ||||||
23 | thereafter, an amount equal to "x", where: | ||||||
24 | (1) "y" equals the amount of the depreciation | ||||||
25 | deduction taken for the
taxable year
on the | ||||||
26 | taxpayer's federal income tax return on property |
| |||||||
| |||||||
1 | for which the bonus
depreciation deduction
was | ||||||
2 | taken in any year under subsection (k) of Section | ||||||
3 | 168 of the Internal
Revenue Code, but not | ||||||
4 | including the bonus depreciation deduction; | ||||||
5 | (2) for taxable years ending on or before | ||||||
6 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
7 | and then divided by 70 (or "y"
multiplied by | ||||||
8 | 0.429); and | ||||||
9 | (3) for taxable years ending after December | ||||||
10 | 31, 2005: | ||||||
11 | (i) for property on which a bonus | ||||||
12 | depreciation deduction of 30% of the adjusted | ||||||
13 | basis was taken, "x" equals "y" multiplied by | ||||||
14 | 30 and then divided by 70 (or "y"
multiplied | ||||||
15 | by 0.429); and | ||||||
16 | (ii) for property on which a bonus | ||||||
17 | depreciation deduction of 50% of the adjusted | ||||||
18 | basis was taken, "x" equals "y" multiplied by | ||||||
19 | 1.0. | ||||||
20 | The aggregate amount deducted under this | ||||||
21 | subparagraph in all taxable
years for any one piece of | ||||||
22 | property may not exceed the amount of the bonus
| ||||||
23 | depreciation deduction
taken on that property on the | ||||||
24 | taxpayer's federal income tax return under
subsection | ||||||
25 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
26 | subparagraph (R) is exempt from the provisions of |
| |||||||
| |||||||
1 | Section 250; | ||||||
2 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
3 | otherwise disposes of
property for which the taxpayer | ||||||
4 | was required in any taxable year to make an
addition | ||||||
5 | modification under subparagraph (G-10), then an amount | ||||||
6 | equal to that
addition modification. | ||||||
7 | If the taxpayer continues to own property through | ||||||
8 | the last day of the last tax year for which the | ||||||
9 | taxpayer may claim a depreciation deduction for | ||||||
10 | federal income tax purposes and for which the taxpayer | ||||||
11 | was required in any taxable year to make an addition | ||||||
12 | modification under subparagraph (G-10), then an amount | ||||||
13 | equal to that addition modification.
| ||||||
14 | The taxpayer is allowed to take the deduction | ||||||
15 | under this subparagraph
only once with respect to any | ||||||
16 | one piece of property. | ||||||
17 | This subparagraph (S) is exempt from the | ||||||
18 | provisions of Section 250; | ||||||
19 | (T) The amount of (i) any interest income (net of | ||||||
20 | the deductions allocable thereto) taken into account | ||||||
21 | for the taxable year with respect to a transaction | ||||||
22 | with a taxpayer that is required to make an addition | ||||||
23 | modification with respect to such transaction under | ||||||
24 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
25 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
26 | the amount of such addition modification and
(ii) any |
| |||||||
| |||||||
1 | income from intangible property (net of the deductions | ||||||
2 | allocable thereto) taken into account for the taxable | ||||||
3 | year with respect to a transaction with a taxpayer | ||||||
4 | that is required to make an addition modification with | ||||||
5 | respect to such transaction under Section | ||||||
6 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
7 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
8 | addition modification. This subparagraph (T) is exempt | ||||||
9 | from the provisions of Section 250;
| ||||||
10 | (U) An amount equal to the interest income taken | ||||||
11 | into account for the taxable year (net of the | ||||||
12 | deductions allocable thereto) with respect to | ||||||
13 | transactions with (i) a foreign person who would be a | ||||||
14 | member of the taxpayer's unitary business group but | ||||||
15 | for the fact the foreign person's business activity | ||||||
16 | outside the United States is 80% or more of that | ||||||
17 | person's total business activity and (ii) for taxable | ||||||
18 | years ending on or after December 31, 2008, to a person | ||||||
19 | who would be a member of the same unitary business | ||||||
20 | group but for the fact that the person is prohibited | ||||||
21 | under Section 1501(a)(27) from being included in the | ||||||
22 | unitary business group because he or she is ordinarily | ||||||
23 | required to apportion business income under different | ||||||
24 | subsections of Section 304, but not to exceed the | ||||||
25 | addition modification required to be made for the same | ||||||
26 | taxable year under Section 203(c)(2)(G-12) for |
| |||||||
| |||||||
1 | interest paid, accrued, or incurred, directly or | ||||||
2 | indirectly, to the same person. This subparagraph (U) | ||||||
3 | is exempt from the provisions of Section 250; | ||||||
4 | (V) An amount equal to the income from intangible | ||||||
5 | property taken into account for the taxable year (net | ||||||
6 | of the deductions allocable thereto) with respect to | ||||||
7 | transactions with (i) a foreign person who would be a | ||||||
8 | member of the taxpayer's unitary business group but | ||||||
9 | for the fact that the foreign person's business | ||||||
10 | activity outside the United States is 80% or more of | ||||||
11 | that person's total business activity and (ii) for | ||||||
12 | taxable years ending on or after December 31, 2008, to | ||||||
13 | a person who would be a member of the same unitary | ||||||
14 | business group but for the fact that the person is | ||||||
15 | prohibited under Section 1501(a)(27) from being | ||||||
16 | included in the unitary business group because he or | ||||||
17 | she is ordinarily required to apportion business | ||||||
18 | income under different subsections of Section 304, but | ||||||
19 | not to exceed the addition modification required to be | ||||||
20 | made for the same taxable year under Section | ||||||
21 | 203(c)(2)(G-13) for intangible expenses and costs | ||||||
22 | paid, accrued, or incurred, directly or indirectly, to | ||||||
23 | the same foreign person. This subparagraph (V) is | ||||||
24 | exempt from the provisions of Section 250;
| ||||||
25 | (W) in the case of an estate, an amount equal to | ||||||
26 | all amounts included in such total pursuant to the |
| |||||||
| |||||||
1 | provisions of Section 111 of the Internal Revenue Code | ||||||
2 | as a recovery of items previously deducted by the | ||||||
3 | decedent from adjusted gross income in the computation | ||||||
4 | of taxable income. This subparagraph (W) is exempt | ||||||
5 | from Section 250; | ||||||
6 | (X) an amount equal to the refund included in such | ||||||
7 | total of any tax deducted for federal income tax | ||||||
8 | purposes, to the extent that deduction was added back | ||||||
9 | under subparagraph (F). This subparagraph (X) is | ||||||
10 | exempt from the provisions of Section 250; | ||||||
11 | (Y) For taxable years ending on or after December | ||||||
12 | 31, 2011, in the case of a taxpayer who was required to | ||||||
13 | add back any insurance premiums under Section | ||||||
14 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
15 | that part of a reimbursement received from the | ||||||
16 | insurance company equal to the amount of the expense | ||||||
17 | or loss (including expenses incurred by the insurance | ||||||
18 | company) that would have been taken into account as a | ||||||
19 | deduction for federal income tax purposes if the | ||||||
20 | expense or loss had been uninsured. If a taxpayer | ||||||
21 | makes the election provided for by this subparagraph | ||||||
22 | (Y), the insurer to which the premiums were paid must | ||||||
23 | add back to income the amount subtracted by the | ||||||
24 | taxpayer pursuant to this subparagraph (Y). This | ||||||
25 | subparagraph (Y) is exempt from the provisions of | ||||||
26 | Section 250; and |
| |||||||
| |||||||
1 | (Z) For taxable years beginning after December 31, | ||||||
2 | 2018 and before January 1, 2026, the amount of excess | ||||||
3 | business loss of the taxpayer disallowed as a | ||||||
4 | deduction by Section 461(l)(1)(B) of the Internal | ||||||
5 | Revenue Code. | ||||||
6 | (3) Limitation. The amount of any modification | ||||||
7 | otherwise required
under this subsection shall, under | ||||||
8 | regulations prescribed by the
Department, be adjusted by | ||||||
9 | any amounts included therein which were
properly paid, | ||||||
10 | credited, or required to be distributed, or permanently | ||||||
11 | set
aside for charitable purposes pursuant to Internal | ||||||
12 | Revenue Code Section
642(c) during the taxable year.
| ||||||
13 | (d) Partnerships. | ||||||
14 | (1) In general. In the case of a partnership, base | ||||||
15 | income means an
amount equal to the taxpayer's taxable | ||||||
16 | income for the taxable year as
modified by paragraph (2). | ||||||
17 | (2) Modifications. The taxable income referred to in | ||||||
18 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
19 | of the following amounts: | ||||||
20 | (A) An amount equal to all amounts paid or accrued | ||||||
21 | to the taxpayer as
interest or dividends during the | ||||||
22 | taxable year to the extent excluded from
gross income | ||||||
23 | in the computation of taxable income; | ||||||
24 | (B) An amount equal to the amount of tax imposed by | ||||||
25 | this Act to the
extent deducted from gross income for |
| |||||||
| |||||||
1 | the taxable year; | ||||||
2 | (C) The amount of deductions allowed to the | ||||||
3 | partnership pursuant to
Section 707 (c) of the | ||||||
4 | Internal Revenue Code in calculating its taxable | ||||||
5 | income; | ||||||
6 | (D) An amount equal to the amount of the capital | ||||||
7 | gain deduction
allowable under the Internal Revenue | ||||||
8 | Code, to the extent deducted from
gross income in the | ||||||
9 | computation of taxable income; | ||||||
10 | (D-5) For taxable years 2001 and thereafter, an | ||||||
11 | amount equal to the
bonus depreciation deduction taken | ||||||
12 | on the taxpayer's federal income tax return for the | ||||||
13 | taxable
year under subsection (k) of Section 168 of | ||||||
14 | the Internal Revenue Code; | ||||||
15 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
16 | or otherwise disposes of
property for which the | ||||||
17 | taxpayer was required in any taxable year to make an
| ||||||
18 | addition modification under subparagraph (D-5), then | ||||||
19 | an amount equal to the
aggregate amount of the | ||||||
20 | deductions taken in all taxable years
under | ||||||
21 | subparagraph (O) with respect to that property. | ||||||
22 | If the taxpayer continues to own property through | ||||||
23 | the last day of the last tax year for which the | ||||||
24 | taxpayer may claim a depreciation deduction for | ||||||
25 | federal income tax purposes and for which the taxpayer | ||||||
26 | was allowed in any taxable year to make a subtraction |
| |||||||
| |||||||
1 | modification under subparagraph (O), then an amount | ||||||
2 | equal to that subtraction modification.
| ||||||
3 | The taxpayer is required to make the addition | ||||||
4 | modification under this
subparagraph
only once with | ||||||
5 | respect to any one piece of property; | ||||||
6 | (D-7) An amount equal to the amount otherwise | ||||||
7 | allowed as a deduction in computing base income for | ||||||
8 | interest paid, accrued, or incurred, directly or | ||||||
9 | indirectly, (i) for taxable years ending on or after | ||||||
10 | December 31, 2004, to a foreign person who would be a | ||||||
11 | member of the same unitary business group but for the | ||||||
12 | fact the foreign person's business activity outside | ||||||
13 | the United States is 80% or more of the foreign | ||||||
14 | person's total business activity and (ii) for taxable | ||||||
15 | years ending on or after December 31, 2008, to a person | ||||||
16 | who would be a member of the same unitary business | ||||||
17 | group but for the fact that the person is prohibited | ||||||
18 | under Section 1501(a)(27) from being included in the | ||||||
19 | unitary business group because he or she is ordinarily | ||||||
20 | required to apportion business income under different | ||||||
21 | subsections of Section 304. The addition modification | ||||||
22 | required by this subparagraph shall be reduced to the | ||||||
23 | extent that dividends were included in base income of | ||||||
24 | the unitary group for the same taxable year and | ||||||
25 | received by the taxpayer or by a member of the | ||||||
26 | taxpayer's unitary business group (including amounts |
| |||||||
| |||||||
1 | included in gross income pursuant to Sections 951 | ||||||
2 | through 964 of the Internal Revenue Code and amounts | ||||||
3 | included in gross income under Section 78 of the | ||||||
4 | Internal Revenue Code) with respect to the stock of | ||||||
5 | the same person to whom the interest was paid, | ||||||
6 | accrued, or incurred.
| ||||||
7 | This paragraph shall not apply to the following:
| ||||||
8 | (i) an item of interest paid, accrued, or | ||||||
9 | incurred, directly or indirectly, to a person who | ||||||
10 | is subject in a foreign country or state, other | ||||||
11 | than a state which requires mandatory unitary | ||||||
12 | reporting, to a tax on or measured by net income | ||||||
13 | with respect to such interest; or | ||||||
14 | (ii) an item of interest paid, accrued, or | ||||||
15 | incurred, directly or indirectly, to a person if | ||||||
16 | the taxpayer can establish, based on a | ||||||
17 | preponderance of the evidence, both of the | ||||||
18 | following: | ||||||
19 | (a) the person, during the same taxable | ||||||
20 | year, paid, accrued, or incurred, the interest | ||||||
21 | to a person that is not a related member, and | ||||||
22 | (b) the transaction giving rise to the | ||||||
23 | interest expense between the taxpayer and the | ||||||
24 | person did not have as a principal purpose the | ||||||
25 | avoidance of Illinois income tax, and is paid | ||||||
26 | pursuant to a contract or agreement that |
| |||||||
| |||||||
1 | reflects an arm's-length interest rate and | ||||||
2 | terms; or
| ||||||
3 | (iii) the taxpayer can establish, based on | ||||||
4 | clear and convincing evidence, that the interest | ||||||
5 | paid, accrued, or incurred relates to a contract | ||||||
6 | or agreement entered into at arm's-length rates | ||||||
7 | and terms and the principal purpose for the | ||||||
8 | payment is not federal or Illinois tax avoidance; | ||||||
9 | or
| ||||||
10 | (iv) an item of interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to a person if | ||||||
12 | the taxpayer establishes by clear and convincing | ||||||
13 | evidence that the adjustments are unreasonable; or | ||||||
14 | if the taxpayer and the Director agree in writing | ||||||
15 | to the application or use of an alternative method | ||||||
16 | of apportionment under Section 304(f).
| ||||||
17 | Nothing in this subsection shall preclude the | ||||||
18 | Director from making any other adjustment | ||||||
19 | otherwise allowed under Section 404 of this Act | ||||||
20 | for any tax year beginning after the effective | ||||||
21 | date of this amendment provided such adjustment is | ||||||
22 | made pursuant to regulation adopted by the | ||||||
23 | Department and such regulations provide methods | ||||||
24 | and standards by which the Department will utilize | ||||||
25 | its authority under Section 404 of this Act; and
| ||||||
26 | (D-8) An amount equal to the amount of intangible |
| |||||||
| |||||||
1 | expenses and costs otherwise allowed as a deduction in | ||||||
2 | computing base income, and that were paid, accrued, or | ||||||
3 | incurred, directly or indirectly, (i) for taxable | ||||||
4 | years ending on or after December 31, 2004, to a | ||||||
5 | foreign person who would be a member of the same | ||||||
6 | unitary business group but for the fact that the | ||||||
7 | foreign person's business activity outside the United | ||||||
8 | States is 80% or more of that person's total business | ||||||
9 | activity and (ii) for taxable years ending on or after | ||||||
10 | December 31, 2008, to a person who would be a member of | ||||||
11 | the same unitary business group but for the fact that | ||||||
12 | the person is prohibited under Section 1501(a)(27) | ||||||
13 | from being included in the unitary business group | ||||||
14 | because he or she is ordinarily required to apportion | ||||||
15 | business income under different subsections of Section | ||||||
16 | 304. The addition modification required by this | ||||||
17 | subparagraph shall be reduced to the extent that | ||||||
18 | dividends were included in base income of the unitary | ||||||
19 | group for the same taxable year and received by the | ||||||
20 | taxpayer or by a member of the taxpayer's unitary | ||||||
21 | business group (including amounts included in gross | ||||||
22 | income pursuant to Sections 951 through 964 of the | ||||||
23 | Internal Revenue Code and amounts included in gross | ||||||
24 | income under Section 78 of the Internal Revenue Code) | ||||||
25 | with respect to the stock of the same person to whom | ||||||
26 | the intangible expenses and costs were directly or |
| |||||||
| |||||||
1 | indirectly paid, incurred or accrued. The preceding | ||||||
2 | sentence shall not apply to the extent that the same | ||||||
3 | dividends caused a reduction to the addition | ||||||
4 | modification required under Section 203(d)(2)(D-7) of | ||||||
5 | this Act. As used in this subparagraph, the term | ||||||
6 | "intangible expenses and costs" includes (1) expenses, | ||||||
7 | losses, and costs for, or related to, the direct or | ||||||
8 | indirect acquisition, use, maintenance or management, | ||||||
9 | ownership, sale, exchange, or any other disposition of | ||||||
10 | intangible property; (2) losses incurred, directly or | ||||||
11 | indirectly, from factoring transactions or discounting | ||||||
12 | transactions; (3) royalty, patent, technical, and | ||||||
13 | copyright fees; (4) licensing fees; and (5) other | ||||||
14 | similar expenses and costs. For purposes of this | ||||||
15 | subparagraph, "intangible property" includes patents, | ||||||
16 | patent applications, trade names, trademarks, service | ||||||
17 | marks, copyrights, mask works, trade secrets, and | ||||||
18 | similar types of intangible assets; | ||||||
19 | This paragraph shall not apply to the following: | ||||||
20 | (i) any item of intangible expenses or costs | ||||||
21 | paid, accrued, or incurred, directly or | ||||||
22 | indirectly, from a transaction with a person who | ||||||
23 | is subject in a foreign country or state, other | ||||||
24 | than a state which requires mandatory unitary | ||||||
25 | reporting, to a tax on or measured by net income | ||||||
26 | with respect to such item; or |
| |||||||
| |||||||
1 | (ii) any item of intangible expense or cost | ||||||
2 | paid, accrued, or incurred, directly or | ||||||
3 | indirectly, if the taxpayer can establish, based | ||||||
4 | on a preponderance of the evidence, both of the | ||||||
5 | following: | ||||||
6 | (a) the person during the same taxable | ||||||
7 | year paid, accrued, or incurred, the | ||||||
8 | intangible expense or cost to a person that is | ||||||
9 | not a related member, and | ||||||
10 | (b) the transaction giving rise to the | ||||||
11 | intangible expense or cost between the | ||||||
12 | taxpayer and the person did not have as a | ||||||
13 | principal purpose the avoidance of Illinois | ||||||
14 | income tax, and is paid pursuant to a contract | ||||||
15 | or agreement that reflects arm's-length terms; | ||||||
16 | or | ||||||
17 | (iii) any item of intangible expense or cost | ||||||
18 | paid, accrued, or incurred, directly or | ||||||
19 | indirectly, from a transaction with a person if | ||||||
20 | the taxpayer establishes by clear and convincing | ||||||
21 | evidence, that the adjustments are unreasonable; | ||||||
22 | or if the taxpayer and the Director agree in | ||||||
23 | writing to the application or use of an | ||||||
24 | alternative method of apportionment under Section | ||||||
25 | 304(f);
| ||||||
26 | Nothing in this subsection shall preclude the |
| |||||||
| |||||||
1 | Director from making any other adjustment | ||||||
2 | otherwise allowed under Section 404 of this Act | ||||||
3 | for any tax year beginning after the effective | ||||||
4 | date of this amendment provided such adjustment is | ||||||
5 | made pursuant to regulation adopted by the | ||||||
6 | Department and such regulations provide methods | ||||||
7 | and standards by which the Department will utilize | ||||||
8 | its authority under Section 404 of this Act;
| ||||||
9 | (D-9) For taxable years ending on or after | ||||||
10 | December 31, 2008, an amount equal to the amount of | ||||||
11 | insurance premium expenses and costs otherwise allowed | ||||||
12 | as a deduction in computing base income, and that were | ||||||
13 | paid, accrued, or incurred, directly or indirectly, to | ||||||
14 | a person who would be a member of the same unitary | ||||||
15 | business group but for the fact that the person is | ||||||
16 | prohibited under Section 1501(a)(27) from being | ||||||
17 | included in the unitary business group because he or | ||||||
18 | she is ordinarily required to apportion business | ||||||
19 | income under different subsections of Section 304. The | ||||||
20 | addition modification required by this subparagraph | ||||||
21 | shall be reduced to the extent that dividends were | ||||||
22 | included in base income of the unitary group for the | ||||||
23 | same taxable year and received by the taxpayer or by a | ||||||
24 | member of the taxpayer's unitary business group | ||||||
25 | (including amounts included in gross income under | ||||||
26 | Sections 951 through 964 of the Internal Revenue Code |
| |||||||
| |||||||
1 | and amounts included in gross income under Section 78 | ||||||
2 | of the Internal Revenue Code) with respect to the | ||||||
3 | stock of the same person to whom the premiums and costs | ||||||
4 | were directly or indirectly paid, incurred, or | ||||||
5 | accrued. The preceding sentence does not apply to the | ||||||
6 | extent that the same dividends caused a reduction to | ||||||
7 | the addition modification required under Section | ||||||
8 | 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act; | ||||||
9 | (D-10) An amount equal to the credit allowable to | ||||||
10 | the taxpayer under Section 218(a) of this Act, | ||||||
11 | determined without regard to Section 218(c) of this | ||||||
12 | Act; | ||||||
13 | (D-11) For taxable years ending on or after | ||||||
14 | December 31, 2017, an amount equal to the deduction | ||||||
15 | allowed under Section 199 of the Internal Revenue Code | ||||||
16 | for the taxable year; | ||||||
17 | and by deducting from the total so obtained the following | ||||||
18 | amounts: | ||||||
19 | (E) The valuation limitation amount; | ||||||
20 | (F) An amount equal to the amount of any tax | ||||||
21 | imposed by this Act which
was refunded to the taxpayer | ||||||
22 | and included in such total for the taxable year; | ||||||
23 | (G) An amount equal to all amounts included in | ||||||
24 | taxable income as
modified by subparagraphs (A), (B), | ||||||
25 | (C) and (D) which are exempt from
taxation by this | ||||||
26 | State either by reason of its statutes or Constitution |
| |||||||
| |||||||
1 | or
by reason of
the Constitution, treaties or statutes | ||||||
2 | of the United States;
provided that, in the case of any | ||||||
3 | statute of this State that exempts income
derived from | ||||||
4 | bonds or other obligations from the tax imposed under | ||||||
5 | this Act,
the amount exempted shall be the interest | ||||||
6 | net of bond premium amortization; | ||||||
7 | (H) Any income of the partnership which | ||||||
8 | constitutes personal service
income as defined in | ||||||
9 | Section 1348(b)(1) of the Internal Revenue Code (as
in | ||||||
10 | effect December 31, 1981) or a reasonable allowance | ||||||
11 | for compensation
paid or accrued for services rendered | ||||||
12 | by partners to the partnership,
whichever is greater; | ||||||
13 | this subparagraph (H) is exempt from the provisions of | ||||||
14 | Section 250; | ||||||
15 | (I) An amount equal to all amounts of income | ||||||
16 | distributable to an entity
subject to the Personal | ||||||
17 | Property Tax Replacement Income Tax imposed by
| ||||||
18 | subsections (c) and (d) of Section 201 of this Act | ||||||
19 | including amounts
distributable to organizations | ||||||
20 | exempt from federal income tax by reason of
Section | ||||||
21 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
22 | (I) is exempt from the provisions of Section 250; | ||||||
23 | (J) With the exception of any amounts subtracted | ||||||
24 | under subparagraph
(G),
an amount equal to the sum of | ||||||
25 | all amounts disallowed as deductions
by (i) Sections | ||||||
26 | 171(a)(2) , and 265(a)(2) of the Internal Revenue Code, |
| |||||||
| |||||||
1 | and all amounts of expenses allocable to
interest and | ||||||
2 | disallowed as deductions by Section 265(a)(1) of the | ||||||
3 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
4 | ending on or after August 13, 1999, Sections
| ||||||
5 | 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||||||
6 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
7 | ending on or after December 31, 2011, Section | ||||||
8 | 45G(e)(3) of the Internal Revenue Code and, for | ||||||
9 | taxable years ending on or after December 31, 2008, | ||||||
10 | any amount included in gross income under Section 87 | ||||||
11 | of the Internal Revenue Code; the provisions of this
| ||||||
12 | subparagraph are exempt from the provisions of Section | ||||||
13 | 250; | ||||||
14 | (K) An amount equal to those dividends included in | ||||||
15 | such total which were
paid by a corporation which | ||||||
16 | conducts business operations in a River Edge | ||||||
17 | Redevelopment Zone or zones created under the River | ||||||
18 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
19 | all of its operations
from a River Edge Redevelopment | ||||||
20 | Zone or zones. This subparagraph (K) is exempt from | ||||||
21 | the provisions of Section 250; | ||||||
22 | (L) An amount equal to any contribution made to a | ||||||
23 | job training project
established pursuant to the Real | ||||||
24 | Property Tax Increment Allocation
Redevelopment Act; | ||||||
25 | (M) An amount equal to those dividends included in | ||||||
26 | such total
that were paid by a corporation that |
| |||||||
| |||||||
1 | conducts business operations in a
federally designated | ||||||
2 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
3 | a
High Impact Business located in Illinois; provided | ||||||
4 | that dividends eligible
for the deduction provided in | ||||||
5 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
6 | shall not be eligible for the deduction provided under | ||||||
7 | this
subparagraph (M); | ||||||
8 | (N) An amount equal to the amount of the deduction | ||||||
9 | used to compute the
federal income tax credit for | ||||||
10 | restoration of substantial amounts held under
claim of | ||||||
11 | right for the taxable year pursuant to Section 1341 of | ||||||
12 | the
Internal Revenue Code; | ||||||
13 | (O) For taxable years 2001 and thereafter, for the | ||||||
14 | taxable year in
which the bonus depreciation deduction
| ||||||
15 | is taken on the taxpayer's federal income tax return | ||||||
16 | under
subsection (k) of Section 168 of the Internal | ||||||
17 | Revenue Code and for each
applicable taxable year | ||||||
18 | thereafter, an amount equal to "x", where: | ||||||
19 | (1) "y" equals the amount of the depreciation | ||||||
20 | deduction taken for the
taxable year
on the | ||||||
21 | taxpayer's federal income tax return on property | ||||||
22 | for which the bonus
depreciation deduction
was | ||||||
23 | taken in any year under subsection (k) of Section | ||||||
24 | 168 of the Internal
Revenue Code, but not | ||||||
25 | including the bonus depreciation deduction; | ||||||
26 | (2) for taxable years ending on or before |
| |||||||
| |||||||
1 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
2 | and then divided by 70 (or "y"
multiplied by | ||||||
3 | 0.429); and | ||||||
4 | (3) for taxable years ending after December | ||||||
5 | 31, 2005: | ||||||
6 | (i) for property on which a bonus | ||||||
7 | depreciation deduction of 30% of the adjusted | ||||||
8 | basis was taken, "x" equals "y" multiplied by | ||||||
9 | 30 and then divided by 70 (or "y"
multiplied | ||||||
10 | by 0.429); and | ||||||
11 | (ii) for property on which a bonus | ||||||
12 | depreciation deduction of 50% of the adjusted | ||||||
13 | basis was taken, "x" equals "y" multiplied by | ||||||
14 | 1.0. | ||||||
15 | The aggregate amount deducted under this | ||||||
16 | subparagraph in all taxable
years for any one piece of | ||||||
17 | property may not exceed the amount of the bonus
| ||||||
18 | depreciation deduction
taken on that property on the | ||||||
19 | taxpayer's federal income tax return under
subsection | ||||||
20 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
21 | subparagraph (O) is exempt from the provisions of | ||||||
22 | Section 250; | ||||||
23 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
24 | otherwise disposes of
property for which the taxpayer | ||||||
25 | was required in any taxable year to make an
addition | ||||||
26 | modification under subparagraph (D-5), then an amount |
| |||||||
| |||||||
1 | equal to that
addition modification. | ||||||
2 | If the taxpayer continues to own property through | ||||||
3 | the last day of the last tax year for which the | ||||||
4 | taxpayer may claim a depreciation deduction for | ||||||
5 | federal income tax purposes and for which the taxpayer | ||||||
6 | was required in any taxable year to make an addition | ||||||
7 | modification under subparagraph (D-5), then an amount | ||||||
8 | equal to that addition modification.
| ||||||
9 | The taxpayer is allowed to take the deduction | ||||||
10 | under this subparagraph
only once with respect to any | ||||||
11 | one piece of property. | ||||||
12 | This subparagraph (P) is exempt from the | ||||||
13 | provisions of Section 250; | ||||||
14 | (Q) The amount of (i) any interest income (net of | ||||||
15 | the deductions allocable thereto) taken into account | ||||||
16 | for the taxable year with respect to a transaction | ||||||
17 | with a taxpayer that is required to make an addition | ||||||
18 | modification with respect to such transaction under | ||||||
19 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
20 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
21 | the amount of such addition modification and
(ii) any | ||||||
22 | income from intangible property (net of the deductions | ||||||
23 | allocable thereto) taken into account for the taxable | ||||||
24 | year with respect to a transaction with a taxpayer | ||||||
25 | that is required to make an addition modification with | ||||||
26 | respect to such transaction under Section |
| |||||||
| |||||||
1 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
2 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
3 | addition modification. This subparagraph (Q) is exempt | ||||||
4 | from Section 250;
| ||||||
5 | (R) An amount equal to the interest income taken | ||||||
6 | into account for the taxable year (net of the | ||||||
7 | deductions allocable thereto) with respect to | ||||||
8 | transactions with (i) a foreign person who would be a | ||||||
9 | member of the taxpayer's unitary business group but | ||||||
10 | for the fact that the foreign person's business | ||||||
11 | activity outside the United States is 80% or more of | ||||||
12 | that person's total business activity and (ii) for | ||||||
13 | taxable years ending on or after December 31, 2008, to | ||||||
14 | a person who would be a member of the same unitary | ||||||
15 | business group but for the fact that the person is | ||||||
16 | prohibited under Section 1501(a)(27) from being | ||||||
17 | included in the unitary business group because he or | ||||||
18 | she is ordinarily required to apportion business | ||||||
19 | income under different subsections of Section 304, but | ||||||
20 | not to exceed the addition modification required to be | ||||||
21 | made for the same taxable year under Section | ||||||
22 | 203(d)(2)(D-7) for interest paid, accrued, or | ||||||
23 | incurred, directly or indirectly, to the same person. | ||||||
24 | This subparagraph (R) is exempt from Section 250; | ||||||
25 | (S) An amount equal to the income from intangible | ||||||
26 | property taken into account for the taxable year (net |
| |||||||
| |||||||
1 | of the deductions allocable thereto) with respect to | ||||||
2 | transactions with (i) a foreign person who would be a | ||||||
3 | member of the taxpayer's unitary business group but | ||||||
4 | for the fact that the foreign person's business | ||||||
5 | activity outside the United States is 80% or more of | ||||||
6 | that person's total business activity and (ii) for | ||||||
7 | taxable years ending on or after December 31, 2008, to | ||||||
8 | a person who would be a member of the same unitary | ||||||
9 | business group but for the fact that the person is | ||||||
10 | prohibited under Section 1501(a)(27) from being | ||||||
11 | included in the unitary business group because he or | ||||||
12 | she is ordinarily required to apportion business | ||||||
13 | income under different subsections of Section 304, but | ||||||
14 | not to exceed the addition modification required to be | ||||||
15 | made for the same taxable year under Section | ||||||
16 | 203(d)(2)(D-8) for intangible expenses and costs paid, | ||||||
17 | accrued, or incurred, directly or indirectly, to the | ||||||
18 | same person. This subparagraph (S) is exempt from | ||||||
19 | Section 250; and
| ||||||
20 | (T) For taxable years ending on or after December | ||||||
21 | 31, 2011, in the case of a taxpayer who was required to | ||||||
22 | add back any insurance premiums under Section | ||||||
23 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
24 | that part of a reimbursement received from the | ||||||
25 | insurance company equal to the amount of the expense | ||||||
26 | or loss (including expenses incurred by the insurance |
| |||||||
| |||||||
1 | company) that would have been taken into account as a | ||||||
2 | deduction for federal income tax purposes if the | ||||||
3 | expense or loss had been uninsured. If a taxpayer | ||||||
4 | makes the election provided for by this subparagraph | ||||||
5 | (T), the insurer to which the premiums were paid must | ||||||
6 | add back to income the amount subtracted by the | ||||||
7 | taxpayer pursuant to this subparagraph (T). This | ||||||
8 | subparagraph (T) is exempt from the provisions of | ||||||
9 | Section 250. | ||||||
10 | (U) Any grant amounts received as an eligible | ||||||
11 | entity under the Real Economic Support That | ||||||
12 | Acknowledges Unique Restaurant Assistance Needed To | ||||||
13 | Survive (RESTAURANTS) Act.
| ||||||
14 | (e) Gross income; adjusted gross income; taxable income. | ||||||
15 | (1) In general. Subject to the provisions of paragraph | ||||||
16 | (2) and
subsection (b)(3), for purposes of this Section | ||||||
17 | and Section 803(e), a
taxpayer's gross income, adjusted | ||||||
18 | gross income, or taxable income for
the taxable year shall | ||||||
19 | mean the amount of gross income, adjusted gross
income or | ||||||
20 | taxable income properly reportable for federal income tax
| ||||||
21 | purposes for the taxable year under the provisions of the | ||||||
22 | Internal
Revenue Code. Taxable income may be less than | ||||||
23 | zero. However, for taxable
years ending on or after | ||||||
24 | December 31, 1986, net operating loss
carryforwards from | ||||||
25 | taxable years ending prior to December 31, 1986, may not
|
| |||||||
| |||||||
1 | exceed the sum of federal taxable income for the taxable | ||||||
2 | year before net
operating loss deduction, plus the excess | ||||||
3 | of addition modifications over
subtraction modifications | ||||||
4 | for the taxable year. For taxable years ending
prior to | ||||||
5 | December 31, 1986, taxable income may never be an amount | ||||||
6 | in excess
of the net operating loss for the taxable year as | ||||||
7 | defined in subsections
(c) and (d) of Section 172 of the | ||||||
8 | Internal Revenue Code, provided that when
taxable income | ||||||
9 | of a corporation (other than a Subchapter S corporation),
| ||||||
10 | trust, or estate is less than zero and addition | ||||||
11 | modifications, other than
those provided by subparagraph | ||||||
12 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
13 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
14 | trusts and estates, exceed subtraction modifications, an | ||||||
15 | addition
modification must be made under those | ||||||
16 | subparagraphs for any other taxable
year to which the | ||||||
17 | taxable income less than zero (net operating loss) is
| ||||||
18 | applied under Section 172 of the Internal Revenue Code or | ||||||
19 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
20 | (e) applied in
conjunction with Section 172 of the | ||||||
21 | Internal Revenue Code. | ||||||
22 | (2) Special rule. For purposes of paragraph (1) of | ||||||
23 | this subsection,
the taxable income properly reportable | ||||||
24 | for federal income tax purposes
shall mean: | ||||||
25 | (A) Certain life insurance companies. In the case | ||||||
26 | of a life
insurance company subject to the tax imposed |
| |||||||
| |||||||
1 | by Section 801 of the
Internal Revenue Code, life | ||||||
2 | insurance company taxable income, plus the
amount of | ||||||
3 | distribution from pre-1984 policyholder surplus | ||||||
4 | accounts as
calculated under Section 815a of the | ||||||
5 | Internal Revenue Code; | ||||||
6 | (B) Certain other insurance companies. In the case | ||||||
7 | of mutual
insurance companies subject to the tax | ||||||
8 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
9 | insurance company taxable income; | ||||||
10 | (C) Regulated investment companies. In the case of | ||||||
11 | a regulated
investment company subject to the tax | ||||||
12 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
13 | investment company taxable income; | ||||||
14 | (D) Real estate investment trusts. In the case of | ||||||
15 | a real estate
investment trust subject to the tax | ||||||
16 | imposed by Section 857 of the
Internal Revenue Code, | ||||||
17 | real estate investment trust taxable income; | ||||||
18 | (E) Consolidated corporations. In the case of a | ||||||
19 | corporation which
is a member of an affiliated group | ||||||
20 | of corporations filing a consolidated
income tax | ||||||
21 | return for the taxable year for federal income tax | ||||||
22 | purposes,
taxable income determined as if such | ||||||
23 | corporation had filed a separate
return for federal | ||||||
24 | income tax purposes for the taxable year and each
| ||||||
25 | preceding taxable year for which it was a member of an | ||||||
26 | affiliated group.
For purposes of this subparagraph, |
| |||||||
| |||||||
1 | the taxpayer's separate taxable
income shall be | ||||||
2 | determined as if the election provided by Section
| ||||||
3 | 243(b)(2) of the Internal Revenue Code had been in | ||||||
4 | effect for all such years; | ||||||
5 | (F) Cooperatives. In the case of a cooperative | ||||||
6 | corporation or
association, the taxable income of such | ||||||
7 | organization determined in
accordance with the | ||||||
8 | provisions of Section 1381 through 1388 of the
| ||||||
9 | Internal Revenue Code, but without regard to the | ||||||
10 | prohibition against offsetting losses from patronage | ||||||
11 | activities against income from nonpatronage | ||||||
12 | activities; except that a cooperative corporation or | ||||||
13 | association may make an election to follow its federal | ||||||
14 | income tax treatment of patronage losses and | ||||||
15 | nonpatronage losses. In the event such election is | ||||||
16 | made, such losses shall be computed and carried over | ||||||
17 | in a manner consistent with subsection (a) of Section | ||||||
18 | 207 of this Act and apportioned by the apportionment | ||||||
19 | factor reported by the cooperative on its Illinois | ||||||
20 | income tax return filed for the taxable year in which | ||||||
21 | the losses are incurred. The election shall be | ||||||
22 | effective for all taxable years with original returns | ||||||
23 | due on or after the date of the election. In addition, | ||||||
24 | the cooperative may file an amended return or returns, | ||||||
25 | as allowed under this Act, to provide that the | ||||||
26 | election shall be effective for losses incurred or |
| |||||||
| |||||||
1 | carried forward for taxable years occurring prior to | ||||||
2 | the date of the election. Once made, the election may | ||||||
3 | only be revoked upon approval of the Director. The | ||||||
4 | Department shall adopt rules setting forth | ||||||
5 | requirements for documenting the elections and any | ||||||
6 | resulting Illinois net loss and the standards to be | ||||||
7 | used by the Director in evaluating requests to revoke | ||||||
8 | elections. Public Act 96-932 is declaratory of | ||||||
9 | existing law; | ||||||
10 | (G) Subchapter S corporations. In the case of: (i) | ||||||
11 | a Subchapter S
corporation for which there is in | ||||||
12 | effect an election for the taxable year
under Section | ||||||
13 | 1362 of the Internal Revenue Code, the taxable income | ||||||
14 | of such
corporation determined in accordance with | ||||||
15 | Section 1363(b) of the Internal
Revenue Code, except | ||||||
16 | that taxable income shall take into
account those | ||||||
17 | items which are required by Section 1363(b)(1) of the
| ||||||
18 | Internal Revenue Code to be separately stated; and | ||||||
19 | (ii) a Subchapter
S corporation for which there is in | ||||||
20 | effect a federal election to opt out of
the provisions | ||||||
21 | of the Subchapter S Revision Act of 1982 and have | ||||||
22 | applied
instead the prior federal Subchapter S rules | ||||||
23 | as in effect on July 1, 1982,
the taxable income of | ||||||
24 | such corporation determined in accordance with the
| ||||||
25 | federal Subchapter S rules as in effect on July 1, | ||||||
26 | 1982; and |
| |||||||
| |||||||
1 | (H) Partnerships. In the case of a partnership, | ||||||
2 | taxable income
determined in accordance with Section | ||||||
3 | 703 of the Internal Revenue Code,
except that taxable | ||||||
4 | income shall take into account those items which are
| ||||||
5 | required by Section 703(a)(1) to be separately stated | ||||||
6 | but which would be
taken into account by an individual | ||||||
7 | in calculating his taxable income. | ||||||
8 | (3) Recapture of business expenses on disposition of | ||||||
9 | asset or business. Notwithstanding any other law to the | ||||||
10 | contrary, if in prior years income from an asset or | ||||||
11 | business has been classified as business income and in a | ||||||
12 | later year is demonstrated to be non-business income, then | ||||||
13 | all expenses, without limitation, deducted in such later | ||||||
14 | year and in the 2 immediately preceding taxable years | ||||||
15 | related to that asset or business that generated the | ||||||
16 | non-business income shall be added back and recaptured as | ||||||
17 | business income in the year of the disposition of the | ||||||
18 | asset or business. Such amount shall be apportioned to | ||||||
19 | Illinois using the greater of the apportionment fraction | ||||||
20 | computed for the business under Section 304 of this Act | ||||||
21 | for the taxable year or the average of the apportionment | ||||||
22 | fractions computed for the business under Section 304 of | ||||||
23 | this Act for the taxable year and for the 2 immediately | ||||||
24 | preceding taxable years.
| ||||||
25 | (f) Valuation limitation amount. |
| |||||||
| |||||||
1 | (1) In general. The valuation limitation amount | ||||||
2 | referred to in
subsections (a)(2)(G), (c)(2)(I) and | ||||||
3 | (d)(2)(E) is an amount equal to: | ||||||
4 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
5 | amounts (to the
extent consisting of gain reportable | ||||||
6 | under the provisions of Section
1245 or 1250 of the | ||||||
7 | Internal Revenue Code) for all property in respect
of | ||||||
8 | which such gain was reported for the taxable year; | ||||||
9 | plus | ||||||
10 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
11 | 1969 appreciation
amounts (to the extent consisting of | ||||||
12 | capital gain) for all property in
respect of which | ||||||
13 | such gain was reported for federal income tax purposes
| ||||||
14 | for the taxable year, or (ii) the net capital gain for | ||||||
15 | the taxable year,
reduced in either case by any amount | ||||||
16 | of such gain included in the amount
determined under | ||||||
17 | subsection (a)(2)(F) or (c)(2)(H). | ||||||
18 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
19 | (A) If the fair market value of property referred | ||||||
20 | to in paragraph
(1) was readily ascertainable on | ||||||
21 | August 1, 1969, the pre-August 1, 1969
appreciation | ||||||
22 | amount for such property is the lesser of (i) the | ||||||
23 | excess of
such fair market value over the taxpayer's | ||||||
24 | basis (for determining gain)
for such property on that | ||||||
25 | date (determined under the Internal Revenue
Code as in | ||||||
26 | effect on that date), or (ii) the total gain realized |
| |||||||
| |||||||
1 | and
reportable for federal income tax purposes in | ||||||
2 | respect of the sale,
exchange or other disposition of | ||||||
3 | such property. | ||||||
4 | (B) If the fair market value of property referred | ||||||
5 | to in paragraph
(1) was not readily ascertainable on | ||||||
6 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
7 | amount for such property is that amount which bears
| ||||||
8 | the same ratio to the total gain reported in respect of | ||||||
9 | the property for
federal income tax purposes for the | ||||||
10 | taxable year, as the number of full
calendar months in | ||||||
11 | that part of the taxpayer's holding period for the
| ||||||
12 | property ending July 31, 1969 bears to the number of | ||||||
13 | full calendar
months in the taxpayer's entire holding | ||||||
14 | period for the
property. | ||||||
15 | (C) The Department shall prescribe such | ||||||
16 | regulations as may be
necessary to carry out the | ||||||
17 | purposes of this paragraph.
| ||||||
18 | (g) Double deductions. Unless specifically provided | ||||||
19 | otherwise, nothing
in this Section shall permit the same item | ||||||
20 | to be deducted more than once.
| ||||||
21 | (h) Legislative intention. Except as expressly provided by | ||||||
22 | this
Section there shall be no modifications or limitations on | ||||||
23 | the amounts
of income, gain, loss or deduction taken into | ||||||
24 | account in determining
gross income, adjusted gross income or |
| |||||||
| |||||||
1 | taxable income for federal income
tax purposes for the taxable | ||||||
2 | year, or in the amount of such items
entering into the | ||||||
3 | computation of base income and net income under this
Act for | ||||||
4 | such taxable year, whether in respect of property values as of
| ||||||
5 | August 1, 1969 or otherwise. | ||||||
6 | (Source: P.A. 100-22, eff. 7-6-17; 100-905, eff. 8-17-18; | ||||||
7 | 101-9, eff. 6-5-19; 101-81, eff. 7-12-19; revised 9-20-19.)
| ||||||
8 | Section 905. The State Finance Act is amended by adding | ||||||
9 | Section 5.935 as follows:
| ||||||
10 | (30 ILCS 105/5.935 new) | ||||||
11 | Sec. 5.935. The Illinois Restaurant Revitalization Fund.
| ||||||
12 | Section 999. Effective date. This Act takes effect upon | ||||||
13 | becoming law.
|