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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4
ARTICLE 5.
5 Section 5-5. The Department of Revenue Law of the Civil
6Administrative Code of Illinois is amended by adding Section
72505-815 as follows:
8 (20 ILCS 2505/2505-815 new)
9 Sec. 2505-815. County Official Compensation Task Force.
10 (a) The County Official Compensation Task Force is created
11to review the compensation of county-level officials as
12provided for in various State statutes and to make
13recommendations to the General Assembly on any appropriate
14changes to those statutes, including implementation dates.
15 (b) The members of the Task Force shall be as follows:
16 (1) the Director of Revenue or the Director's
17 designee, who shall serve as the chair of the Task Force;
18 (2) two representatives from a statewide organization
19 that represents chief county assessment officers, with one
20 representative from a county with a 2020 population of
21 fewer than 25,000 persons and one representative from a
22 county with a 2020 population of 25,000 or more, to be

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1 appointed by the Director of Revenue;
2 (3) two representatives from a statewide organization
3 that represents county auditors, with one representative
4 from a county with a 2020 population of fewer than 25,000
5 persons and one representative from a county with a 2020
6 population of 25,000 or more, to be appointed by the
7 Director of Revenue;
8 (4) two representatives from a statewide organization
9 that represents county clerks and recorders, with one
10 representative from a county with a 2020 population of
11 fewer than 25,000 persons and one representative from a
12 county with a 2020 population of 25,000 or more, to be
13 appointed by the Director of Revenue;
14 (5) two representatives from a statewide organization
15 that represents circuit clerks, with one representative
16 from a county with a 2020 population of fewer than 25,000
17 persons and one representative from a county with a 2020
18 population of 25,000 or more, to be appointed by the Chief
19 Justice of the Supreme Court;
20 (6) two representatives from a statewide organization
21 that represents county treasurers, with one representative
22 from a county with a 2020 population of fewer than 25,000
23 persons and one representative from a county with a 2020
24 population of 25,000 or more, to be appointed by the
25 Director of Revenue;
26 (7) four representatives from a statewide organization

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1 that represents county board members, with 2
2 representatives from counties with a 2020 population of
3 fewer than 25,000 persons and 2 representatives from
4 counties with a 2020 population of 25,000 or more, to be
5 appointed by the Governor; and
6 (8) four members from the General Assembly, with one
7 member appointed by the President of the Senate, one
8 member appointed by the Senate Minority Leader, one member
9 appointed by the Speaker of the House of Representatives,
10 and one member appointed by the House Minority Leader.
11 (c) The Department of Revenue shall provide administrative
12and other support to the Task Force.
13 (d) The Task Force's review shall include, but is not
14limited to, the following subjects:
15 (1) a review and comparison of current statutory
16 provisions and requirements for compensation of
17 county-level officials;
18 (2) the proportion of salary and related costs borne
19 by State government compared to local government;
20 (3) job duties, education requirements, and other
21 requirements of those serving as county-level officials;
22 and
23 (4) current compensation levels for county-level
24 officials as compared to comparable positions in
25 non-governmental positions and comparable positions in
26 other levels of government.

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1 (e) On or before September 1, 2024, the Task Force members
2shall be appointed. On or before February 1, 2025, the Task
3Force shall prepare a status report that summarizes its work.
4The Task Force shall also prepare a comprehensive report
5either (i) on or before May 1, 2025 or (ii) on or before
6December 31, 2025, if all appointments to the Task Force are
7not made by September 1, 2024. The comprehensive report shall
8summarize the Task Force's findings and make recommendations
9on the implementation of changes to the compensation of chief
10county assessment officers, county auditors, county clerks and
11recorders, county coroners, county treasurers, and circuit
12clerks that will ensure compensation is competitive for
13recruitment and retention and will ensure parity exists among
14compensation levels within each profession, each county, and
15across the State.
16 (f) The Task Force is dissolved on January 1, 2026.
17
ARTICLE 10.
18 Section 10-1. Short title. This Act may be cited as the
19Workforce Development through Charitable Loan Repayment Act.
20References in this Article to "this Act" mean this Article.
21 Section 10-5. Purpose. The purpose of this Act is to
22create a private sector incentive for qualified workers to
23work and live in eligible areas while also reducing the

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1student debt burden of those workers.
2 Section 10-10. Definitions. As used in this Act:
3 "Commission" means the Illinois Student Assistance
4Commission.
5 "Full-time employee" means an individual who is employed
6for consideration for at least 35 hours each week.
7 "Program" means the Workforce Development Through
8Charitable Loan Repayment Program established under this Act.
9 "Qualified community foundation" means a community
10foundation or similar publicly supported organization
11described in Section 170(b)(1)(A)(vi) of the Internal Revenue
12Code of 1986 that (i) is organized or operating in this State,
13(ii) substantially complies, as determined by the Commission,
14with the national standards for United States community
15foundations established by the Community Foundations National
16Standards or a successor entity, and (iii) is approved by the
17Commission for participation in the Program as provided in
18Section 10-17.
19 "Qualified worker" means an individual who meets all of
20the following:
21 (1) the individual is a full-time employee of a
22 business that meets one or more of the following:
23 (A) the business is a qualified new business
24 venture that is registered with the Department of
25 Commerce and Economic Opportunity under Section 220 of

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1 the Illinois Income Tax Act;
2 (B) the business is primarily engaged in a
3 targeted growth industry;
4 (C) the business is a minority-owned business, a
5 women-owned business, or a business owned by a person
6 with a disability, as those terms are defined in the
7 Business Enterprise for Minorities, Women, and Persons
8 with Disabilities Act; or
9 (D) the business is a not-for-profit corporation,
10 as defined in the General Not For Profit Corporation
11 Act of 1986;
12 (2) the individual is employed by the business
13 described in paragraph (1) at a job site that is located in
14 an Enterprise Zone, an Opportunity Zone, an underserved
15 area, or an area that has a bachelor's degree attainment
16 rate for the population that is below the State or
17 national average for the population, as determined by the
18 United States Census Bureau; and
19 (3) the individual (i) received an associate degree or
20 higher and has an outstanding balance due on a qualified
21 education loan, as defined in Section 221 of the Internal
22 Revenue Code, or (ii) accrued educational debt while
23 pursuing skilled trades and related schooling.
24 "Student loan repayment assistance" means grants or
25post-graduation scholarships made by a community foundation
26directly to a student loan servicer on behalf of a qualified

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1worker.
2 "Targeted growth industry" means one or more of the
3following:
4 (1) advanced manufacturing;
5 (2) agribusiness and food processing;
6 (3) transportation distribution and logistics;
7 (4) life sciences and biotechnology;
8 (5) business and professional services; or
9 (6) energy.
10 "Underserved area" has the meaning given to that term in
11Section 5-5 of the Economic Development for a Growing Economy
12Tax Credit Act.
13 Section 10-15. Establishment of the Program;
14advertisement. The Workforce Development through Charitable
15Loan Repayment Program is hereby created for the purpose of
16facilitating student loan repayment assistance for qualified
17workers. The Program shall be administered by qualified
18community foundations with the assistance of the Commission.
19The Commission shall advertise the program on its website.
20 Section 10-17. Approval to participate in the Program.
21 (a) A qualified community foundation shall apply to the
22Commission, in the form and manner prescribed by the
23Commission, for eligibility to participate in the Program
24under this Act. Each application shall include:

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1 (1) documentary evidence that the qualified community
2 foundation meets the qualifications under Section
3 170(b)(1)(A)(vi) of the Internal Revenue Code and
4 substantially complies with the standards established by
5 Community Foundations National Standards;
6 (2) a list of the names and addresses of all members of
7 the governing board of the qualified community foundation;
8 and
9 (3) a copy of the most recent financial audit of the
10 qualified community foundation's accounts and records
11 conducted by an independent certified public accountant in
12 accordance with auditing standards generally accepted in
13 the United States, government auditing standards, and
14 rules adopted by the Commission.
15 (b) The Commission shall review and either approve or deny
16each application for participation. Applicants shall be
17notified of the status of their application within a
18reasonable amount of time after the completed application is
19received.
20 (c) The Commission may provide, by rule, that qualified
21community foundations that are eligible to participate in tax
22incentive programs administered by other State agencies are
23automatically eligible to participate in the Program under
24this Section.
25 Section 10-20. Applications. Each qualified community

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1foundation shall establish an application process for
2qualified workers to receive student loan repayment assistance
3from the qualified community foundation in accordance with
4this Act and rules adopted for the implementation of this Act
5by the Commission. If necessary due to limited funds, the
6qualified community foundation shall give priority to
7applicants with a higher student debt-to-income ratio when
8awarding student loan repayment assistance under the Program.
9 Section 10-25. Eligibility; work requirement. Each
10individual qualified community foundation shall certify the
11eligibility of qualified workers to receive student loan
12repayment assistance and establish work requirements in
13accordance with this Act, rules adopted by the Commission, and
14the requirements of the individual qualified community
15foundation.
16 Section 10-30. Administration; rules. Qualified community
17foundations shall administer the Program under this Act and
18shall issue to qualified workers any forms required by the
19Commission or the Department of Revenue. The Commission shall
20adopt rules for the Program's effective implementation, except
21that rules regarding the documentation necessary to deduct
22student loan repayment assistance from the worker's income
23under subparagraph (LL) of subsection (a) of Section 203 of
24the Illinois Income Tax Act may be adopted by the Department of

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1Revenue in consultation with the Commission. Individual
2qualified community foundations may impose requirements for
3participation in the Program, which shall not be inconsistent
4with this Act or the rules adopted by the Commission or the
5Department of Revenue in connection with this Act.
6 Section 10-35. Reporting. Each qualified community
7foundation shall submit an annual report to the Commission
8summarizing its loan repayment activity under the Program.
9Reports under this Section shall be submitted in the form and
10manner prescribed by the Commission.
11 Section 10-900. The Illinois Income Tax Act is amended by
12changing Section 203 as follows:
13 (35 ILCS 5/203)
14 Sec. 203. Base income defined.
15 (a) Individuals.
16 (1) In general. In the case of an individual, base
17 income means an amount equal to the taxpayer's adjusted
18 gross income for the taxable year as modified by paragraph
19 (2).
20 (2) Modifications. The adjusted gross income referred
21 to in paragraph (1) shall be modified by adding thereto
22 the sum of the following amounts:
23 (A) An amount equal to all amounts paid or accrued

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1 to the taxpayer as interest or dividends during the
2 taxable year to the extent excluded from gross income
3 in the computation of adjusted gross income, except
4 stock dividends of qualified public utilities
5 described in Section 305(e) of the Internal Revenue
6 Code;
7 (B) An amount equal to the amount of tax imposed by
8 this Act to the extent deducted from gross income in
9 the computation of adjusted gross income for the
10 taxable year;
11 (C) An amount equal to the amount received during
12 the taxable year as a recovery or refund of real
13 property taxes paid with respect to the taxpayer's
14 principal residence under the Revenue Act of 1939 and
15 for which a deduction was previously taken under
16 subparagraph (L) of this paragraph (2) prior to July
17 1, 1991, the retrospective application date of Article
18 4 of Public Act 87-17. In the case of multi-unit or
19 multi-use structures and farm dwellings, the taxes on
20 the taxpayer's principal residence shall be that
21 portion of the total taxes for the entire property
22 which is attributable to such principal residence;
23 (D) An amount equal to the amount of the capital
24 gain deduction allowable under the Internal Revenue
25 Code, to the extent deducted from gross income in the
26 computation of adjusted gross income;

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1 (D-5) An amount, to the extent not included in
2 adjusted gross income, equal to the amount of money
3 withdrawn by the taxpayer in the taxable year from a
4 medical care savings account and the interest earned
5 on the account in the taxable year of a withdrawal
6 pursuant to subsection (b) of Section 20 of the
7 Medical Care Savings Account Act or subsection (b) of
8 Section 20 of the Medical Care Savings Account Act of
9 2000;
10 (D-10) For taxable years ending after December 31,
11 1997, an amount equal to any eligible remediation
12 costs that the individual deducted in computing
13 adjusted gross income and for which the individual
14 claims a credit under subsection (l) of Section 201;
15 (D-15) For taxable years 2001 and thereafter, an
16 amount equal to the bonus depreciation deduction taken
17 on the taxpayer's federal income tax return for the
18 taxable year under subsection (k) of Section 168 of
19 the Internal Revenue Code;
20 (D-16) If the taxpayer sells, transfers, abandons,
21 or otherwise disposes of property for which the
22 taxpayer was required in any taxable year to make an
23 addition modification under subparagraph (D-15), then
24 an amount equal to the aggregate amount of the
25 deductions taken in all taxable years under
26 subparagraph (Z) with respect to that property.

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1 If the taxpayer continues to own property through
2 the last day of the last tax year for which a
3 subtraction is allowed with respect to that property
4 under subparagraph (Z) and for which the taxpayer was
5 allowed in any taxable year to make a subtraction
6 modification under subparagraph (Z), then an amount
7 equal to that subtraction modification.
8 The taxpayer is required to make the addition
9 modification under this subparagraph only once with
10 respect to any one piece of property;
11 (D-17) An amount equal to the amount otherwise
12 allowed as a deduction in computing base income for
13 interest paid, accrued, or incurred, directly or
14 indirectly, (i) for taxable years ending on or after
15 December 31, 2004, to a foreign person who would be a
16 member of the same unitary business group but for the
17 fact that foreign person's business activity outside
18 the United States is 80% or more of the foreign
19 person's total business activity and (ii) for taxable
20 years ending on or after December 31, 2008, to a person
21 who would be a member of the same unitary business
22 group but for the fact that the person is prohibited
23 under Section 1501(a)(27) from being included in the
24 unitary business group because he or she is ordinarily
25 required to apportion business income under different
26 subsections of Section 304. The addition modification

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1 required by this subparagraph shall be reduced to the
2 extent that dividends were included in base income of
3 the unitary group for the same taxable year and
4 received by the taxpayer or by a member of the
5 taxpayer's unitary business group (including amounts
6 included in gross income under Sections 951 through
7 964 of the Internal Revenue Code and amounts included
8 in gross income under Section 78 of the Internal
9 Revenue Code) with respect to the stock of the same
10 person to whom the interest was paid, accrued, or
11 incurred.
12 This paragraph shall not apply to the following:
13 (i) an item of interest paid, accrued, or
14 incurred, directly or indirectly, to a person who
15 is subject in a foreign country or state, other
16 than a state which requires mandatory unitary
17 reporting, to a tax on or measured by net income
18 with respect to such interest; or
19 (ii) an item of interest paid, accrued, or
20 incurred, directly or indirectly, to a person if
21 the taxpayer can establish, based on a
22 preponderance of the evidence, both of the
23 following:
24 (a) the person, during the same taxable
25 year, paid, accrued, or incurred, the interest
26 to a person that is not a related member, and

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1 (b) the transaction giving rise to the
2 interest expense between the taxpayer and the
3 person did not have as a principal purpose the
4 avoidance of Illinois income tax, and is paid
5 pursuant to a contract or agreement that
6 reflects an arm's-length interest rate and
7 terms; or
8 (iii) the taxpayer can establish, based on
9 clear and convincing evidence, that the interest
10 paid, accrued, or incurred relates to a contract
11 or agreement entered into at arm's-length rates
12 and terms and the principal purpose for the
13 payment is not federal or Illinois tax avoidance;
14 or
15 (iv) an item of interest paid, accrued, or
16 incurred, directly or indirectly, to a person if
17 the taxpayer establishes by clear and convincing
18 evidence that the adjustments are unreasonable; or
19 if the taxpayer and the Director agree in writing
20 to the application or use of an alternative method
21 of apportionment under Section 304(f).
22 Nothing in this subsection shall preclude the
23 Director from making any other adjustment
24 otherwise allowed under Section 404 of this Act
25 for any tax year beginning after the effective
26 date of this amendment provided such adjustment is

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1 made pursuant to regulation adopted by the
2 Department and such regulations provide methods
3 and standards by which the Department will utilize
4 its authority under Section 404 of this Act;
5 (D-18) An amount equal to the amount of intangible
6 expenses and costs otherwise allowed as a deduction in
7 computing base income, and that were paid, accrued, or
8 incurred, directly or indirectly, (i) for taxable
9 years ending on or after December 31, 2004, to a
10 foreign person who would be a member of the same
11 unitary business group but for the fact that the
12 foreign person's business activity outside the United
13 States is 80% or more of that person's total business
14 activity and (ii) for taxable years ending on or after
15 December 31, 2008, to a person who would be a member of
16 the same unitary business group but for the fact that
17 the person is prohibited under Section 1501(a)(27)
18 from being included in the unitary business group
19 because he or she is ordinarily required to apportion
20 business income under different subsections of Section
21 304. The addition modification required by this
22 subparagraph shall be reduced to the extent that
23 dividends were included in base income of the unitary
24 group for the same taxable year and received by the
25 taxpayer or by a member of the taxpayer's unitary
26 business group (including amounts included in gross

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1 income under Sections 951 through 964 of the Internal
2 Revenue Code and amounts included in gross income
3 under Section 78 of the Internal Revenue Code) with
4 respect to the stock of the same person to whom the
5 intangible expenses and costs were directly or
6 indirectly paid, incurred, or accrued. The preceding
7 sentence does not apply to the extent that the same
8 dividends caused a reduction to the addition
9 modification required under Section 203(a)(2)(D-17) of
10 this Act. As used in this subparagraph, the term
11 "intangible expenses and costs" includes (1) expenses,
12 losses, and costs for, or related to, the direct or
13 indirect acquisition, use, maintenance or management,
14 ownership, sale, exchange, or any other disposition of
15 intangible property; (2) losses incurred, directly or
16 indirectly, from factoring transactions or discounting
17 transactions; (3) royalty, patent, technical, and
18 copyright fees; (4) licensing fees; and (5) other
19 similar expenses and costs. For purposes of this
20 subparagraph, "intangible property" includes patents,
21 patent applications, trade names, trademarks, service
22 marks, copyrights, mask works, trade secrets, and
23 similar types of intangible assets.
24 This paragraph shall not apply to the following:
25 (i) any item of intangible expenses or costs
26 paid, accrued, or incurred, directly or

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1 indirectly, from a transaction with a person who
2 is subject in a foreign country or state, other
3 than a state which requires mandatory unitary
4 reporting, to a tax on or measured by net income
5 with respect to such item; or
6 (ii) any item of intangible expense or cost
7 paid, accrued, or incurred, directly or
8 indirectly, if the taxpayer can establish, based
9 on a preponderance of the evidence, both of the
10 following:
11 (a) the person during the same taxable
12 year paid, accrued, or incurred, the
13 intangible expense or cost to a person that is
14 not a related member, and
15 (b) the transaction giving rise to the
16 intangible expense or cost between the
17 taxpayer and the person did not have as a
18 principal purpose the avoidance of Illinois
19 income tax, and is paid pursuant to a contract
20 or agreement that reflects arm's-length terms;
21 or
22 (iii) any item of intangible expense or cost
23 paid, accrued, or incurred, directly or
24 indirectly, from a transaction with a person if
25 the taxpayer establishes by clear and convincing
26 evidence, that the adjustments are unreasonable;

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1 or if the taxpayer and the Director agree in
2 writing to the application or use of an
3 alternative method of apportionment under Section
4 304(f);
5 Nothing in this subsection shall preclude the
6 Director from making any other adjustment
7 otherwise allowed under Section 404 of this Act
8 for any tax year beginning after the effective
9 date of this amendment provided such adjustment is
10 made pursuant to regulation adopted by the
11 Department and such regulations provide methods
12 and standards by which the Department will utilize
13 its authority under Section 404 of this Act;
14 (D-19) For taxable years ending on or after
15 December 31, 2008, an amount equal to the amount of
16 insurance premium expenses and costs otherwise allowed
17 as a deduction in computing base income, and that were
18 paid, accrued, or incurred, directly or indirectly, to
19 a person who would be a member of the same unitary
20 business group but for the fact that the person is
21 prohibited under Section 1501(a)(27) from being
22 included in the unitary business group because he or
23 she is ordinarily required to apportion business
24 income under different subsections of Section 304. The
25 addition modification required by this subparagraph
26 shall be reduced to the extent that dividends were

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1 included in base income of the unitary group for the
2 same taxable year and received by the taxpayer or by a
3 member of the taxpayer's unitary business group
4 (including amounts included in gross income under
5 Sections 951 through 964 of the Internal Revenue Code
6 and amounts included in gross income under Section 78
7 of the Internal Revenue Code) with respect to the
8 stock of the same person to whom the premiums and costs
9 were directly or indirectly paid, incurred, or
10 accrued. The preceding sentence does not apply to the
11 extent that the same dividends caused a reduction to
12 the addition modification required under Section
13 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
14 Act;
15 (D-20) For taxable years beginning on or after
16 January 1, 2002 and ending on or before December 31,
17 2006, in the case of a distribution from a qualified
18 tuition program under Section 529 of the Internal
19 Revenue Code, other than (i) a distribution from a
20 College Savings Pool created under Section 16.5 of the
21 State Treasurer Act or (ii) a distribution from the
22 Illinois Prepaid Tuition Trust Fund, an amount equal
23 to the amount excluded from gross income under Section
24 529(c)(3)(B). For taxable years beginning on or after
25 January 1, 2007, in the case of a distribution from a
26 qualified tuition program under Section 529 of the

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1 Internal Revenue Code, other than (i) a distribution
2 from a College Savings Pool created under Section 16.5
3 of the State Treasurer Act, (ii) a distribution from
4 the Illinois Prepaid Tuition Trust Fund, or (iii) a
5 distribution from a qualified tuition program under
6 Section 529 of the Internal Revenue Code that (I)
7 adopts and determines that its offering materials
8 comply with the College Savings Plans Network's
9 disclosure principles and (II) has made reasonable
10 efforts to inform in-state residents of the existence
11 of in-state qualified tuition programs by informing
12 Illinois residents directly and, where applicable, to
13 inform financial intermediaries distributing the
14 program to inform in-state residents of the existence
15 of in-state qualified tuition programs at least
16 annually, an amount equal to the amount excluded from
17 gross income under Section 529(c)(3)(B).
18 For the purposes of this subparagraph (D-20), a
19 qualified tuition program has made reasonable efforts
20 if it makes disclosures (which may use the term
21 "in-state program" or "in-state plan" and need not
22 specifically refer to Illinois or its qualified
23 programs by name) (i) directly to prospective
24 participants in its offering materials or makes a
25 public disclosure, such as a website posting; and (ii)
26 where applicable, to intermediaries selling the

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1 out-of-state program in the same manner that the
2 out-of-state program distributes its offering
3 materials;
4 (D-20.5) For taxable years beginning on or after
5 January 1, 2018, in the case of a distribution from a
6 qualified ABLE program under Section 529A of the
7 Internal Revenue Code, other than a distribution from
8 a qualified ABLE program created under Section 16.6 of
9 the State Treasurer Act, an amount equal to the amount
10 excluded from gross income under Section 529A(c)(1)(B)
11 of the Internal Revenue Code;
12 (D-21) For taxable years beginning on or after
13 January 1, 2007, in the case of transfer of moneys from
14 a qualified tuition program under Section 529 of the
15 Internal Revenue Code that is administered by the
16 State to an out-of-state program, an amount equal to
17 the amount of moneys previously deducted from base
18 income under subsection (a)(2)(Y) of this Section;
19 (D-21.5) For taxable years beginning on or after
20 January 1, 2018, in the case of the transfer of moneys
21 from a qualified tuition program under Section 529 or
22 a qualified ABLE program under Section 529A of the
23 Internal Revenue Code that is administered by this
24 State to an ABLE account established under an
25 out-of-state ABLE account program, an amount equal to
26 the contribution component of the transferred amount

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1 that was previously deducted from base income under
2 subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
3 Section;
4 (D-22) For taxable years beginning on or after
5 January 1, 2009, and prior to January 1, 2018, in the
6 case of a nonqualified withdrawal or refund of moneys
7 from a qualified tuition program under Section 529 of
8 the Internal Revenue Code administered by the State
9 that is not used for qualified expenses at an eligible
10 education institution, an amount equal to the
11 contribution component of the nonqualified withdrawal
12 or refund that was previously deducted from base
13 income under subsection (a)(2)(y) of this Section,
14 provided that the withdrawal or refund did not result
15 from the beneficiary's death or disability. For
16 taxable years beginning on or after January 1, 2018:
17 (1) in the case of a nonqualified withdrawal or
18 refund, as defined under Section 16.5 of the State
19 Treasurer Act, of moneys from a qualified tuition
20 program under Section 529 of the Internal Revenue Code
21 administered by the State, an amount equal to the
22 contribution component of the nonqualified withdrawal
23 or refund that was previously deducted from base
24 income under subsection (a)(2)(Y) of this Section, and
25 (2) in the case of a nonqualified withdrawal or refund
26 from a qualified ABLE program under Section 529A of

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1 the Internal Revenue Code administered by the State
2 that is not used for qualified disability expenses, an
3 amount equal to the contribution component of the
4 nonqualified withdrawal or refund that was previously
5 deducted from base income under subsection (a)(2)(HH)
6 of this Section;
7 (D-23) An amount equal to the credit allowable to
8 the taxpayer under Section 218(a) of this Act,
9 determined without regard to Section 218(c) of this
10 Act;
11 (D-24) For taxable years ending on or after
12 December 31, 2017, an amount equal to the deduction
13 allowed under Section 199 of the Internal Revenue Code
14 for the taxable year;
15 (D-25) In the case of a resident, an amount equal
16 to the amount of tax for which a credit is allowed
17 pursuant to Section 201(p)(7) of this Act;
18 and by deducting from the total so obtained the sum of the
19 following amounts:
20 (E) For taxable years ending before December 31,
21 2001, any amount included in such total in respect of
22 any compensation (including but not limited to any
23 compensation paid or accrued to a serviceman while a
24 prisoner of war or missing in action) paid to a
25 resident by reason of being on active duty in the Armed
26 Forces of the United States and in respect of any

HB4951 Enrolled- 25 -LRB103 38094 HLH 68226 b
1 compensation paid or accrued to a resident who as a
2 governmental employee was a prisoner of war or missing
3 in action, and in respect of any compensation paid to a
4 resident in 1971 or thereafter for annual training
5 performed pursuant to Sections 502 and 503, Title 32,
6 United States Code as a member of the Illinois
7 National Guard or, beginning with taxable years ending
8 on or after December 31, 2007, the National Guard of
9 any other state. For taxable years ending on or after
10 December 31, 2001, any amount included in such total
11 in respect of any compensation (including but not
12 limited to any compensation paid or accrued to a
13 serviceman while a prisoner of war or missing in
14 action) paid to a resident by reason of being a member
15 of any component of the Armed Forces of the United
16 States and in respect of any compensation paid or
17 accrued to a resident who as a governmental employee
18 was a prisoner of war or missing in action, and in
19 respect of any compensation paid to a resident in 2001
20 or thereafter by reason of being a member of the
21 Illinois National Guard or, beginning with taxable
22 years ending on or after December 31, 2007, the
23 National Guard of any other state. The provisions of
24 this subparagraph (E) are exempt from the provisions
25 of Section 250;
26 (F) An amount equal to all amounts included in

HB4951 Enrolled- 26 -LRB103 38094 HLH 68226 b
1 such total pursuant to the provisions of Sections
2 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
3 408 of the Internal Revenue Code, or included in such
4 total as distributions under the provisions of any
5 retirement or disability plan for employees of any
6 governmental agency or unit, or retirement payments to
7 retired partners, which payments are excluded in
8 computing net earnings from self employment by Section
9 1402 of the Internal Revenue Code and regulations
10 adopted pursuant thereto;
11 (G) The valuation limitation amount;
12 (H) An amount equal to the amount of any tax
13 imposed by this Act which was refunded to the taxpayer
14 and included in such total for the taxable year;
15 (I) An amount equal to all amounts included in
16 such total pursuant to the provisions of Section 111
17 of the Internal Revenue Code as a recovery of items
18 previously deducted from adjusted gross income in the
19 computation of taxable income;
20 (J) An amount equal to those dividends included in
21 such total which were paid by a corporation which
22 conducts business operations in a River Edge
23 Redevelopment Zone or zones created under the River
24 Edge Redevelopment Zone Act, and conducts
25 substantially all of its operations in a River Edge
26 Redevelopment Zone or zones. This subparagraph (J) is

HB4951 Enrolled- 27 -LRB103 38094 HLH 68226 b
1 exempt from the provisions of Section 250;
2 (K) An amount equal to those dividends included in
3 such total that were paid by a corporation that
4 conducts business operations in a federally designated
5 Foreign Trade Zone or Sub-Zone and that is designated
6 a High Impact Business located in Illinois; provided
7 that dividends eligible for the deduction provided in
8 subparagraph (J) of paragraph (2) of this subsection
9 shall not be eligible for the deduction provided under
10 this subparagraph (K);
11 (L) For taxable years ending after December 31,
12 1983, an amount equal to all social security benefits
13 and railroad retirement benefits included in such
14 total pursuant to Sections 72(r) and 86 of the
15 Internal Revenue Code;
16 (M) With the exception of any amounts subtracted
17 under subparagraph (N), an amount equal to the sum of
18 all amounts disallowed as deductions by (i) Sections
19 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
20 and all amounts of expenses allocable to interest and
21 disallowed as deductions by Section 265(a)(1) of the
22 Internal Revenue Code; and (ii) for taxable years
23 ending on or after August 13, 1999, Sections
24 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
25 Internal Revenue Code, plus, for taxable years ending
26 on or after December 31, 2011, Section 45G(e)(3) of

HB4951 Enrolled- 28 -LRB103 38094 HLH 68226 b
1 the Internal Revenue Code and, for taxable years
2 ending on or after December 31, 2008, any amount
3 included in gross income under Section 87 of the
4 Internal Revenue Code; the provisions of this
5 subparagraph are exempt from the provisions of Section
6 250;
7 (N) An amount equal to all amounts included in
8 such total which are exempt from taxation by this
9 State either by reason of its statutes or Constitution
10 or by reason of the Constitution, treaties or statutes
11 of the United States; provided that, in the case of any
12 statute of this State that exempts income derived from
13 bonds or other obligations from the tax imposed under
14 this Act, the amount exempted shall be the interest
15 net of bond premium amortization;
16 (O) An amount equal to any contribution made to a
17 job training project established pursuant to the Tax
18 Increment Allocation Redevelopment Act;
19 (P) An amount equal to the amount of the deduction
20 used to compute the federal income tax credit for
21 restoration of substantial amounts held under claim of
22 right for the taxable year pursuant to Section 1341 of
23 the Internal Revenue Code or of any itemized deduction
24 taken from adjusted gross income in the computation of
25 taxable income for restoration of substantial amounts
26 held under claim of right for the taxable year;

HB4951 Enrolled- 29 -LRB103 38094 HLH 68226 b
1 (Q) An amount equal to any amounts included in
2 such total, received by the taxpayer as an
3 acceleration in the payment of life, endowment or
4 annuity benefits in advance of the time they would
5 otherwise be payable as an indemnity for a terminal
6 illness;
7 (R) An amount equal to the amount of any federal or
8 State bonus paid to veterans of the Persian Gulf War;
9 (S) An amount, to the extent included in adjusted
10 gross income, equal to the amount of a contribution
11 made in the taxable year on behalf of the taxpayer to a
12 medical care savings account established under the
13 Medical Care Savings Account Act or the Medical Care
14 Savings Account Act of 2000 to the extent the
15 contribution is accepted by the account administrator
16 as provided in that Act;
17 (T) An amount, to the extent included in adjusted
18 gross income, equal to the amount of interest earned
19 in the taxable year on a medical care savings account
20 established under the Medical Care Savings Account Act
21 or the Medical Care Savings Account Act of 2000 on
22 behalf of the taxpayer, other than interest added
23 pursuant to item (D-5) of this paragraph (2);
24 (U) For one taxable year beginning on or after
25 January 1, 1994, an amount equal to the total amount of
26 tax imposed and paid under subsections (a) and (b) of

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1 Section 201 of this Act on grant amounts received by
2 the taxpayer under the Nursing Home Grant Assistance
3 Act during the taxpayer's taxable years 1992 and 1993;
4 (V) Beginning with tax years ending on or after
5 December 31, 1995 and ending with tax years ending on
6 or before December 31, 2004, an amount equal to the
7 amount paid by a taxpayer who is a self-employed
8 taxpayer, a partner of a partnership, or a shareholder
9 in a Subchapter S corporation for health insurance or
10 long-term care insurance for that taxpayer or that
11 taxpayer's spouse or dependents, to the extent that
12 the amount paid for that health insurance or long-term
13 care insurance may be deducted under Section 213 of
14 the Internal Revenue Code, has not been deducted on
15 the federal income tax return of the taxpayer, and
16 does not exceed the taxable income attributable to
17 that taxpayer's income, self-employment income, or
18 Subchapter S corporation income; except that no
19 deduction shall be allowed under this item (V) if the
20 taxpayer is eligible to participate in any health
21 insurance or long-term care insurance plan of an
22 employer of the taxpayer or the taxpayer's spouse. The
23 amount of the health insurance and long-term care
24 insurance subtracted under this item (V) shall be
25 determined by multiplying total health insurance and
26 long-term care insurance premiums paid by the taxpayer

HB4951 Enrolled- 31 -LRB103 38094 HLH 68226 b
1 times a number that represents the fractional
2 percentage of eligible medical expenses under Section
3 213 of the Internal Revenue Code of 1986 not actually
4 deducted on the taxpayer's federal income tax return;
5 (W) For taxable years beginning on or after
6 January 1, 1998, all amounts included in the
7 taxpayer's federal gross income in the taxable year
8 from amounts converted from a regular IRA to a Roth
9 IRA. This paragraph is exempt from the provisions of
10 Section 250;
11 (X) 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

HB4951 Enrolled- 32 -LRB103 38094 HLH 68226 b
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 (Y) For taxable years beginning on or after
19 January 1, 2002 and ending on or before December 31,
20 2004, moneys contributed in the taxable year to a
21 College Savings Pool account under Section 16.5 of the
22 State Treasurer Act, 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 taxable
26 years beginning on or after January 1, 2005, a maximum

HB4951 Enrolled- 33 -LRB103 38094 HLH 68226 b
1 of $10,000 contributed in the taxable year to (i) a
2 College Savings Pool account under Section 16.5 of the
3 State Treasurer Act or (ii) the Illinois Prepaid
4 Tuition Trust Fund, except that amounts excluded from
5 gross income under Section 529(c)(3)(C)(i) of the
6 Internal Revenue Code shall not be considered moneys
7 contributed under this subparagraph (Y). For purposes
8 of this subparagraph, contributions made by an
9 employer on behalf of an employee, or matching
10 contributions made by an employee, shall be treated as
11 made by the employee. This subparagraph (Y) is exempt
12 from the provisions of Section 250;
13 (Z) 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

HB4951 Enrolled- 34 -LRB103 38094 HLH 68226 b
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);
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 (iii) for property on which a bonus
16 depreciation deduction of 100% of the adjusted
17 basis was taken in a taxable year ending on or
18 after December 31, 2021, "x" equals the
19 depreciation deduction that would be allowed
20 on that property if the taxpayer had made the
21 election under Section 168(k)(7) of the
22 Internal Revenue Code to not claim bonus
23 depreciation on that property; and
24 (iv) for property on which a bonus
25 depreciation deduction of a percentage other
26 than 30%, 50% or 100% of the adjusted basis

HB4951 Enrolled- 35 -LRB103 38094 HLH 68226 b
1 was taken in a taxable year ending on or after
2 December 31, 2021, "x" equals "y" multiplied
3 by 100 times the percentage bonus depreciation
4 on the property (that is, 100(bonus%)) and
5 then divided by 100 times 1 minus the
6 percentage bonus depreciation on the property
7 (that is, 100(1-bonus%)).
8 The aggregate amount deducted under this
9 subparagraph in all taxable years for any one piece of
10 property may not exceed the amount of the bonus
11 depreciation deduction taken on that property on the
12 taxpayer's federal income tax return under subsection
13 (k) of Section 168 of the Internal Revenue Code. This
14 subparagraph (Z) is exempt from the provisions of
15 Section 250;
16 (AA) 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 (D-15), then
20 an amount equal to that addition modification.
21 If the taxpayer continues to own property through
22 the last day of the last tax year for which a
23 subtraction is allowed with respect to that property
24 under subparagraph (Z) and for which the taxpayer was
25 required in any taxable year to make an addition
26 modification under subparagraph (D-15), then an amount

HB4951 Enrolled- 36 -LRB103 38094 HLH 68226 b
1 equal to that addition modification.
2 The taxpayer is allowed to take the deduction
3 under this subparagraph only once with respect to any
4 one piece of property.
5 This subparagraph (AA) is exempt from the
6 provisions of Section 250;
7 (BB) Any amount included in adjusted gross income,
8 other than salary, received by a driver in a
9 ridesharing arrangement using a motor vehicle;
10 (CC) The amount of (i) any interest income (net of
11 the deductions allocable thereto) taken into account
12 for the taxable year with respect to a transaction
13 with a taxpayer that is required to make an addition
14 modification with respect to such transaction under
15 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
16 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
17 the amount of that addition modification, and (ii) any
18 income from intangible property (net of the deductions
19 allocable thereto) taken into account for the taxable
20 year with respect to a transaction with a taxpayer
21 that is required to make an addition modification with
22 respect to such transaction under Section
23 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
24 203(d)(2)(D-8), but not to exceed the amount of that
25 addition modification. This subparagraph (CC) is
26 exempt from the provisions of Section 250;

HB4951 Enrolled- 37 -LRB103 38094 HLH 68226 b
1 (DD) An amount equal to the interest income taken
2 into account for the taxable year (net of the
3 deductions allocable thereto) with respect to
4 transactions with (i) a foreign person who would be a
5 member of the taxpayer's unitary business group but
6 for the fact that the foreign person's business
7 activity outside the United States is 80% or more of
8 that person's total business activity and (ii) for
9 taxable years ending on or after December 31, 2008, to
10 a person who would be a member of the same unitary
11 business group but for the fact that the person is
12 prohibited under Section 1501(a)(27) from being
13 included in the unitary business group because he or
14 she is ordinarily required to apportion business
15 income under different subsections of Section 304, but
16 not to exceed the addition modification required to be
17 made for the same taxable year under Section
18 203(a)(2)(D-17) for interest paid, accrued, or
19 incurred, directly or indirectly, to the same person.
20 This subparagraph (DD) is exempt from the provisions
21 of Section 250;
22 (EE) An amount equal to the income from intangible
23 property taken into account for the taxable year (net
24 of the deductions allocable thereto) with respect to
25 transactions with (i) a foreign person who would be a
26 member of the taxpayer's unitary business group but

HB4951 Enrolled- 38 -LRB103 38094 HLH 68226 b
1 for the fact that the foreign person's business
2 activity outside the United States is 80% or more of
3 that person's total business activity and (ii) for
4 taxable years ending on or after December 31, 2008, to
5 a person who would be a member of the same unitary
6 business group but for the fact that the person is
7 prohibited under Section 1501(a)(27) from being
8 included in the unitary business group because he or
9 she is ordinarily required to apportion business
10 income under different subsections of Section 304, but
11 not to exceed the addition modification required to be
12 made for the same taxable year under Section
13 203(a)(2)(D-18) for intangible expenses and costs
14 paid, accrued, or incurred, directly or indirectly, to
15 the same foreign person. This subparagraph (EE) is
16 exempt from the provisions of Section 250;
17 (FF) An amount equal to any amount awarded to the
18 taxpayer during the taxable year by the Court of
19 Claims under subsection (c) of Section 8 of the Court
20 of Claims Act for time unjustly served in a State
21 prison. This subparagraph (FF) is exempt from the
22 provisions of Section 250;
23 (GG) For taxable years ending on or after December
24 31, 2011, in the case of a taxpayer who was required to
25 add back any insurance premiums under Section
26 203(a)(2)(D-19), such taxpayer may elect to subtract

HB4951 Enrolled- 39 -LRB103 38094 HLH 68226 b
1 that part of a reimbursement received from the
2 insurance company equal to the amount of the expense
3 or loss (including expenses incurred by the insurance
4 company) that would have been taken into account as a
5 deduction for federal income tax purposes if the
6 expense or loss had been uninsured. If a taxpayer
7 makes the election provided for by this subparagraph
8 (GG), the insurer to which the premiums were paid must
9 add back to income the amount subtracted by the
10 taxpayer pursuant to this subparagraph (GG). This
11 subparagraph (GG) is exempt from the provisions of
12 Section 250;
13 (HH) For taxable years beginning on or after
14 January 1, 2018 and prior to January 1, 2028, a maximum
15 of $10,000 contributed in the taxable year to a
16 qualified ABLE account under Section 16.6 of the State
17 Treasurer Act, except that amounts excluded from gross
18 income under Section 529(c)(3)(C)(i) or Section
19 529A(c)(1)(C) of the Internal Revenue Code shall not
20 be considered moneys contributed under this
21 subparagraph (HH). For purposes of this subparagraph
22 (HH), contributions made by an employer on behalf of
23 an employee, or matching contributions made by an
24 employee, shall be treated as made by the employee;
25 (II) For taxable years that begin on or after
26 January 1, 2021 and begin before January 1, 2026, the

HB4951 Enrolled- 40 -LRB103 38094 HLH 68226 b
1 amount that is included in the taxpayer's federal
2 adjusted gross income pursuant to Section 61 of the
3 Internal Revenue Code as discharge of indebtedness
4 attributable to student loan forgiveness and that is
5 not excluded from the taxpayer's federal adjusted
6 gross income pursuant to paragraph (5) of subsection
7 (f) of Section 108 of the Internal Revenue Code; and
8 (JJ) For taxable years beginning on or after
9 January 1, 2023, for any cannabis establishment
10 operating in this State and licensed under the
11 Cannabis Regulation and Tax Act or any cannabis
12 cultivation center or medical cannabis dispensing
13 organization operating in this State and licensed
14 under the Compassionate Use of Medical Cannabis
15 Program Act, an amount equal to the deductions that
16 were disallowed under Section 280E of the Internal
17 Revenue Code for the taxable year and that would not be
18 added back under this subsection. The provisions of
19 this subparagraph (JJ) are exempt from the provisions
20 of Section 250; .
21 (KK) (JJ) To the extent includible in gross income
22 for federal income tax purposes, any amount awarded or
23 paid to the taxpayer as a result of a judgment or
24 settlement for fertility fraud as provided in Section
25 15 of the Illinois Fertility Fraud Act, donor
26 fertility fraud as provided in Section 20 of the

HB4951 Enrolled- 41 -LRB103 38094 HLH 68226 b
1 Illinois Fertility Fraud Act, or similar action in
2 another state; and .
3 (LL) For taxable years beginning on or after
4 January 1, 2026, if the taxpayer is a qualified
5 worker, as defined in the Workforce Development
6 through Charitable Loan Repayment Act, an amount equal
7 to the amount included in the taxpayer's federal
8 adjusted gross income that is attributable to student
9 loan repayment assistance received by the taxpayer
10 during the taxable year from a qualified community
11 foundation under the provisions of the Workforce
12 Development Through Charitable Loan Repayment Act.
13 This subparagraph (LL) is exempt from the
14 provisions of Section 250.
15 (b) Corporations.
16 (1) In general. In the case of a corporation, base
17 income means an amount equal to the taxpayer's taxable
18 income for the taxable year as modified by paragraph (2).
19 (2) Modifications. The taxable income referred to in
20 paragraph (1) shall be modified by adding thereto the sum
21 of the following amounts:
22 (A) An amount equal to all amounts paid or accrued
23 to the taxpayer as interest and all distributions
24 received from regulated investment companies during
25 the taxable year to the extent excluded from gross

HB4951 Enrolled- 42 -LRB103 38094 HLH 68226 b
1 income in the computation of taxable income;
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 taxable income for the taxable
5 year;
6 (C) In the case of a regulated investment company,
7 an amount equal to the excess of (i) the net long-term
8 capital gain for the taxable year, over (ii) the
9 amount of the capital gain dividends designated as
10 such in accordance with Section 852(b)(3)(C) of the
11 Internal Revenue Code and any amount designated under
12 Section 852(b)(3)(D) of the Internal Revenue Code,
13 attributable to the taxable year (this amendatory Act
14 of 1995 (Public Act 89-89) is declarative of existing
15 law and is not a new enactment);
16 (D) The amount of any net operating loss deduction
17 taken in arriving at taxable income, other than a net
18 operating loss carried forward from a taxable year
19 ending prior to December 31, 1986;
20 (E) For taxable years in which a net operating
21 loss carryback or carryforward from a taxable year
22 ending prior to December 31, 1986 is an element of
23 taxable income under paragraph (1) of subsection (e)
24 or subparagraph (E) of paragraph (2) of subsection
25 (e), the amount by which addition modifications other
26 than those provided by this subparagraph (E) exceeded

HB4951 Enrolled- 43 -LRB103 38094 HLH 68226 b
1 subtraction modifications in such earlier taxable
2 year, with the following limitations applied in the
3 order that they are listed:
4 (i) the addition modification relating to the
5 net operating loss carried back or forward to the
6 taxable year from any taxable year ending prior to
7 December 31, 1986 shall be reduced by the amount
8 of addition modification under this subparagraph
9 (E) which related to that net operating loss and
10 which was taken into account in calculating the
11 base income of an earlier taxable year, and
12 (ii) the addition modification relating to the
13 net operating loss carried back or forward to the
14 taxable year from any taxable year ending prior to
15 December 31, 1986 shall not exceed the amount of
16 such carryback or carryforward;
17 For taxable years in which there is a net
18 operating loss carryback or carryforward from more
19 than one other taxable year ending prior to December
20 31, 1986, the addition modification provided in this
21 subparagraph (E) shall be the sum of the amounts
22 computed independently under the preceding provisions
23 of this subparagraph (E) for each such taxable year;
24 (E-5) For taxable years ending after December 31,
25 1997, an amount equal to any eligible remediation
26 costs that the corporation deducted in computing

HB4951 Enrolled- 44 -LRB103 38094 HLH 68226 b
1 adjusted gross income and for which the corporation
2 claims a credit under subsection (l) of Section 201;
3 (E-10) For taxable years 2001 and thereafter, an
4 amount equal to the bonus depreciation deduction taken
5 on the taxpayer's federal income tax return for the
6 taxable year under subsection (k) of Section 168 of
7 the Internal Revenue Code;
8 (E-11) If the taxpayer sells, transfers, abandons,
9 or otherwise disposes of property for which the
10 taxpayer was required in any taxable year to make an
11 addition modification under subparagraph (E-10), then
12 an amount equal to the aggregate amount of the
13 deductions taken in all taxable years under
14 subparagraph (T) with respect to that property.
15 If the taxpayer continues to own property through
16 the last day of the last tax year for which a
17 subtraction is allowed with respect to that property
18 under subparagraph (T) and for which the taxpayer was
19 allowed in any taxable year to make a subtraction
20 modification under subparagraph (T), then an amount
21 equal to that subtraction modification.
22 The taxpayer is required to make the addition
23 modification under this subparagraph only once with
24 respect to any one piece of property;
25 (E-12) An amount equal to the amount otherwise
26 allowed as a deduction in computing base income for

HB4951 Enrolled- 45 -LRB103 38094 HLH 68226 b
1 interest paid, accrued, or incurred, directly or
2 indirectly, (i) for taxable years ending on or after
3 December 31, 2004, to a foreign person who would be a
4 member of the same unitary business group but for the
5 fact the foreign person's business activity outside
6 the United States is 80% or more of the foreign
7 person's total business activity and (ii) for taxable
8 years ending on or after December 31, 2008, to a person
9 who would be a member of the same unitary business
10 group but for the fact that the person is prohibited
11 under Section 1501(a)(27) from being included in the
12 unitary business group because he or she is ordinarily
13 required to apportion business income under different
14 subsections of Section 304. The addition modification
15 required by this subparagraph shall be reduced to the
16 extent that dividends were included in base income of
17 the unitary group for the same taxable year and
18 received by the taxpayer or by a member of the
19 taxpayer's unitary business group (including amounts
20 included in gross income pursuant to Sections 951
21 through 964 of the Internal Revenue Code and amounts
22 included in gross income under Section 78 of the
23 Internal Revenue Code) with respect to the stock of
24 the same person to whom the interest was paid,
25 accrued, or incurred.
26 This paragraph shall not apply to the following:

HB4951 Enrolled- 46 -LRB103 38094 HLH 68226 b
1 (i) an item of interest paid, accrued, or
2 incurred, directly or indirectly, to 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 interest; or
7 (ii) an item of interest paid, accrued, or
8 incurred, directly or indirectly, to a person if
9 the taxpayer can establish, based on a
10 preponderance of the evidence, both of the
11 following:
12 (a) the person, during the same taxable
13 year, paid, accrued, or incurred, the interest
14 to a person that is not a related member, and
15 (b) the transaction giving rise to the
16 interest expense between the taxpayer and the
17 person did not have as a principal purpose the
18 avoidance of Illinois income tax, and is paid
19 pursuant to a contract or agreement that
20 reflects an arm's-length interest rate and
21 terms; or
22 (iii) the taxpayer can establish, based on
23 clear and convincing evidence, that the interest
24 paid, accrued, or incurred relates to a contract
25 or agreement entered into at arm's-length rates
26 and terms and the principal purpose for the

HB4951 Enrolled- 47 -LRB103 38094 HLH 68226 b
1 payment is not federal or Illinois tax avoidance;
2 or
3 (iv) an item of interest paid, accrued, or
4 incurred, directly or indirectly, to a person if
5 the taxpayer establishes by clear and convincing
6 evidence that the adjustments are unreasonable; or
7 if the taxpayer and the Director agree in writing
8 to the application or use of an alternative method
9 of apportionment under Section 304(f).
10 Nothing in this subsection shall preclude the
11 Director from making any other adjustment
12 otherwise allowed under Section 404 of this Act
13 for any tax year beginning after the effective
14 date of this amendment provided such adjustment is
15 made pursuant to regulation adopted by the
16 Department and such regulations provide methods
17 and standards by which the Department will utilize
18 its authority under Section 404 of this Act;
19 (E-13) An amount equal to the amount of intangible
20 expenses and costs otherwise allowed as a deduction in
21 computing base income, and that were paid, accrued, or
22 incurred, directly or indirectly, (i) for taxable
23 years ending on or after December 31, 2004, to a
24 foreign person who would be a member of the same
25 unitary business group but for the fact that the
26 foreign person's business activity outside the United

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1 States is 80% or more of that person's total business
2 activity and (ii) for taxable years ending on or after
3 December 31, 2008, to a person who would be a member of
4 the same unitary business group but for the fact that
5 the person is prohibited under Section 1501(a)(27)
6 from being included in the unitary business group
7 because he or she is ordinarily required to apportion
8 business income under different subsections of Section
9 304. The addition modification required by this
10 subparagraph shall be reduced to the extent that
11 dividends were included in base income of the unitary
12 group for the same taxable year and received by the
13 taxpayer or by a member of the taxpayer's unitary
14 business group (including amounts included in gross
15 income pursuant to Sections 951 through 964 of the
16 Internal Revenue Code and amounts included in gross
17 income under Section 78 of the Internal Revenue Code)
18 with respect to the stock of the same person to whom
19 the intangible expenses and costs were directly or
20 indirectly paid, incurred, or accrued. The preceding
21 sentence shall not apply to the extent that the same
22 dividends caused a reduction to the addition
23 modification required under Section 203(b)(2)(E-12) of
24 this Act. As used in this subparagraph, the term
25 "intangible expenses and costs" includes (1) expenses,
26 losses, and costs for, or related to, the direct or

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1 indirect acquisition, use, maintenance or management,
2 ownership, sale, exchange, or any other disposition of
3 intangible property; (2) losses incurred, directly or
4 indirectly, from factoring transactions or discounting
5 transactions; (3) royalty, patent, technical, and
6 copyright fees; (4) licensing fees; and (5) other
7 similar expenses and costs. For purposes of this
8 subparagraph, "intangible property" includes patents,
9 patent applications, trade names, trademarks, service
10 marks, copyrights, mask works, trade secrets, and
11 similar types of intangible assets.
12 This paragraph shall not apply to the following:
13 (i) any item of intangible expenses or costs
14 paid, accrued, or incurred, directly or
15 indirectly, from a transaction with 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 item; or
20 (ii) any item of intangible expense or cost
21 paid, accrued, or incurred, directly or
22 indirectly, if the taxpayer can establish, based
23 on a preponderance of the evidence, both of the
24 following:
25 (a) the person during the same taxable
26 year paid, accrued, or incurred, the

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1 intangible expense or cost to a person that is
2 not a related member, and
3 (b) the transaction giving rise to the
4 intangible expense or cost between the
5 taxpayer and the person did not have as a
6 principal purpose the avoidance of Illinois
7 income tax, and is paid pursuant to a contract
8 or agreement that reflects arm's-length terms;
9 or
10 (iii) any item of intangible expense or cost
11 paid, accrued, or incurred, directly or
12 indirectly, from a transaction with a person if
13 the taxpayer establishes by clear and convincing
14 evidence, that the adjustments are unreasonable;
15 or if the taxpayer and the Director agree in
16 writing to the application or use of an
17 alternative method of apportionment under Section
18 304(f);
19 Nothing in this subsection shall preclude the
20 Director from making any other adjustment
21 otherwise allowed under Section 404 of this Act
22 for any tax year beginning after the effective
23 date of this amendment provided such adjustment is
24 made pursuant to regulation adopted by the
25 Department and such regulations provide methods
26 and standards by which the Department will utilize

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1 its authority under Section 404 of this Act;
2 (E-14) For taxable years ending on or after
3 December 31, 2008, an amount equal to the amount of
4 insurance premium expenses and costs otherwise allowed
5 as a deduction in computing base income, and that were
6 paid, accrued, or incurred, directly or indirectly, to
7 a person who would be a member of the same unitary
8 business group but for the fact that the person is
9 prohibited under Section 1501(a)(27) from being
10 included in the unitary business group because he or
11 she is ordinarily required to apportion business
12 income under different subsections of Section 304. The
13 addition modification required by this subparagraph
14 shall be reduced to the extent that dividends were
15 included in base income of the unitary group for the
16 same taxable year and received by the taxpayer or by a
17 member of the taxpayer's unitary business group
18 (including amounts included in gross income under
19 Sections 951 through 964 of the Internal Revenue Code
20 and amounts included in gross income under Section 78
21 of the Internal Revenue Code) with respect to the
22 stock of the same person to whom the premiums and costs
23 were directly or indirectly paid, incurred, or
24 accrued. The preceding sentence does not apply to the
25 extent that the same dividends caused a reduction to
26 the addition modification required under Section

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1 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
2 Act;
3 (E-15) For taxable years beginning after December
4 31, 2008, any deduction for dividends paid by a
5 captive real estate investment trust that is allowed
6 to a real estate investment trust under Section
7 857(b)(2)(B) of the Internal Revenue Code for
8 dividends paid;
9 (E-16) 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 (E-17) 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 (E-18) for taxable years beginning after December
18 31, 2018, an amount equal to the deduction allowed
19 under Section 250(a)(1)(A) of the Internal Revenue
20 Code for the taxable year;
21 (E-19) for taxable years ending on or after June
22 30, 2021, an amount equal to the deduction allowed
23 under Section 250(a)(1)(B)(i) of the Internal Revenue
24 Code for the taxable year;
25 (E-20) for taxable years ending on or after June
26 30, 2021, an amount equal to the deduction allowed

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1 under Sections 243(e) and 245A(a) of the Internal
2 Revenue Code for the taxable year.
3 and by deducting from the total so obtained the sum of the
4 following amounts:
5 (F) An amount equal to the amount of any tax
6 imposed by this Act which was refunded to the taxpayer
7 and included in such total for the taxable year;
8 (G) An amount equal to any amount included in such
9 total under Section 78 of the Internal Revenue Code;
10 (H) In the case of a regulated investment company,
11 an amount equal to the amount of exempt interest
12 dividends as defined in subsection (b)(5) of Section
13 852 of the Internal Revenue Code, paid to shareholders
14 for the taxable year;
15 (I) With the exception of any amounts subtracted
16 under subparagraph (J), an amount equal to the sum of
17 all amounts disallowed as deductions by (i) Sections
18 171(a)(2) and 265(a)(2) and amounts disallowed as
19 interest expense by Section 291(a)(3) of the Internal
20 Revenue Code, and all amounts of expenses allocable to
21 interest and disallowed as deductions by Section
22 265(a)(1) of the Internal Revenue Code; and (ii) for
23 taxable years ending on or after August 13, 1999,
24 Sections 171(a)(2), 265, 280C, 291(a)(3), and
25 832(b)(5)(B)(i) of the Internal Revenue Code, plus,
26 for tax years ending on or after December 31, 2011,

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1 amounts disallowed as deductions by Section 45G(e)(3)
2 of the Internal Revenue Code and, for taxable years
3 ending on or after December 31, 2008, any amount
4 included in gross income under Section 87 of the
5 Internal Revenue Code and the policyholders' share of
6 tax-exempt interest of a life insurance company under
7 Section 807(a)(2)(B) of the Internal Revenue Code (in
8 the case of a life insurance company with gross income
9 from a decrease in reserves for the tax year) or
10 Section 807(b)(1)(B) of the Internal Revenue Code (in
11 the case of a life insurance company allowed a
12 deduction for an increase in reserves for the tax
13 year); the provisions of this subparagraph are exempt
14 from the provisions of Section 250;
15 (J) An amount equal to all amounts included in
16 such total which are exempt from taxation by this
17 State either by reason of its statutes or Constitution
18 or by reason of the Constitution, treaties or statutes
19 of the United States; provided that, in the case of any
20 statute of this State that exempts income derived from
21 bonds or other obligations from the tax imposed under
22 this Act, the amount exempted shall be the interest
23 net of bond premium amortization;
24 (K) An amount equal to those dividends included in
25 such total which were paid by a corporation which
26 conducts business operations in a River Edge

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1 Redevelopment Zone or zones created under the River
2 Edge Redevelopment Zone Act and conducts substantially
3 all of its operations in a River Edge Redevelopment
4 Zone or zones. This subparagraph (K) is exempt from
5 the provisions of Section 250;
6 (L) An amount equal to those dividends included in
7 such total that were paid by a corporation that
8 conducts business operations in a federally designated
9 Foreign Trade Zone or Sub-Zone and that is designated
10 a High Impact Business located in Illinois; provided
11 that dividends eligible for the deduction provided in
12 subparagraph (K) of paragraph 2 of this subsection
13 shall not be eligible for the deduction provided under
14 this subparagraph (L);
15 (M) For any taxpayer that is a financial
16 organization within the meaning of Section 304(c) of
17 this Act, an amount included in such total as interest
18 income from a loan or loans made by such taxpayer to a
19 borrower, to the extent that such a loan is secured by
20 property which is eligible for the River Edge
21 Redevelopment Zone Investment Credit. To determine the
22 portion of a loan or loans that is secured by property
23 eligible for a Section 201(f) investment credit to the
24 borrower, the entire principal amount of the loan or
25 loans between the taxpayer and the borrower should be
26 divided into the basis of the Section 201(f)

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1 investment credit property which secures the loan or
2 loans, using for this purpose the original basis of
3 such property on the date that it was placed in service
4 in the River Edge Redevelopment Zone. The subtraction
5 modification available to the taxpayer in any year
6 under this subsection shall be that portion of the
7 total interest paid by the borrower with respect to
8 such loan attributable to the eligible property as
9 calculated under the previous sentence. This
10 subparagraph (M) is exempt from the provisions of
11 Section 250;
12 (M-1) For any taxpayer that is a financial
13 organization within the meaning of Section 304(c) of
14 this Act, an amount included in such total as interest
15 income from a loan or loans made by such taxpayer to a
16 borrower, to the extent that such a loan is secured by
17 property which is eligible for the High Impact
18 Business Investment Credit. To determine the portion
19 of a loan or loans that is secured by property eligible
20 for a Section 201(h) investment credit to the
21 borrower, the entire principal amount of the loan or
22 loans between the taxpayer and the borrower should be
23 divided into the basis of the Section 201(h)
24 investment credit property which secures the loan or
25 loans, using for this purpose the original basis of
26 such property on the date that it was placed in service

HB4951 Enrolled- 57 -LRB103 38094 HLH 68226 b
1 in a federally designated Foreign Trade Zone or
2 Sub-Zone located in Illinois. No taxpayer that is
3 eligible for the deduction provided in subparagraph
4 (M) of paragraph (2) of this subsection shall be
5 eligible for the deduction provided under this
6 subparagraph (M-1). The subtraction modification
7 available to taxpayers in any year under this
8 subsection shall be that portion of the total interest
9 paid by the borrower with respect to such loan
10 attributable to the eligible property as calculated
11 under the previous sentence;
12 (N) Two times any contribution made during the
13 taxable year to a designated zone organization to the
14 extent that the contribution (i) qualifies as a
15 charitable contribution under subsection (c) of
16 Section 170 of the Internal Revenue Code and (ii)
17 must, by its terms, be used for a project approved by
18 the Department of Commerce and Economic Opportunity
19 under Section 11 of the Illinois Enterprise Zone Act
20 or under Section 10-10 of the River Edge Redevelopment
21 Zone Act. This subparagraph (N) is exempt from the
22 provisions of Section 250;
23 (O) An amount equal to: (i) 85% for taxable years
24 ending on or before December 31, 1992, or, a
25 percentage equal to the percentage allowable under
26 Section 243(a)(1) of the Internal Revenue Code of 1986

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1 for taxable years ending after December 31, 1992, of
2 the amount by which dividends included in taxable
3 income and received from a corporation that is not
4 created or organized under the laws of the United
5 States or any state or political subdivision thereof,
6 including, for taxable years ending on or after
7 December 31, 1988, dividends received or deemed
8 received or paid or deemed paid under Sections 951
9 through 965 of the Internal Revenue Code, exceed the
10 amount of the modification provided under subparagraph
11 (G) of paragraph (2) of this subsection (b) which is
12 related to such dividends, and including, for taxable
13 years ending on or after December 31, 2008, dividends
14 received from a captive real estate investment trust;
15 plus (ii) 100% of the amount by which dividends,
16 included in taxable income and received, including,
17 for taxable years ending on or after December 31,
18 1988, dividends received or deemed received or paid or
19 deemed paid under Sections 951 through 964 of the
20 Internal Revenue Code and including, for taxable years
21 ending on or after December 31, 2008, dividends
22 received from a captive real estate investment trust,
23 from any such corporation specified in clause (i) that
24 would but for the provisions of Section 1504(b)(3) of
25 the Internal Revenue Code be treated as a member of the
26 affiliated group which includes the dividend

HB4951 Enrolled- 59 -LRB103 38094 HLH 68226 b
1 recipient, exceed the amount of the modification
2 provided under subparagraph (G) of paragraph (2) of
3 this subsection (b) which is related to such
4 dividends. For taxable years ending on or after June
5 30, 2021, (i) for purposes of this subparagraph, the
6 term "dividend" does not include any amount treated as
7 a dividend under Section 1248 of the Internal Revenue
8 Code, and (ii) this subparagraph shall not apply to
9 dividends for which a deduction is allowed under
10 Section 245(a) of the Internal Revenue Code. This
11 subparagraph (O) is exempt from the provisions of
12 Section 250 of this Act;
13 (P) An amount equal to any contribution made to a
14 job training project established pursuant to the Tax
15 Increment Allocation Redevelopment Act;
16 (Q) An amount equal to the amount of the deduction
17 used to compute the federal income tax credit for
18 restoration of substantial amounts held under claim of
19 right for the taxable year pursuant to Section 1341 of
20 the Internal Revenue Code;
21 (R) On and after July 20, 1999, in the case of an
22 attorney-in-fact with respect to whom an interinsurer
23 or a reciprocal insurer has made the election under
24 Section 835 of the Internal Revenue Code, 26 U.S.C.
25 835, an amount equal to the excess, if any, of the
26 amounts paid or incurred by that interinsurer or

HB4951 Enrolled- 60 -LRB103 38094 HLH 68226 b
1 reciprocal insurer in the taxable year to the
2 attorney-in-fact over the deduction allowed to that
3 interinsurer or reciprocal insurer with respect to the
4 attorney-in-fact under Section 835(b) of the Internal
5 Revenue Code for the taxable year; the provisions of
6 this subparagraph are exempt from the provisions of
7 Section 250;
8 (S) For taxable years ending on or after December
9 31, 1997, in the case of a Subchapter S corporation, an
10 amount equal to all amounts of income allocable to a
11 shareholder subject to the Personal Property Tax
12 Replacement Income Tax imposed by subsections (c) and
13 (d) of Section 201 of this Act, including amounts
14 allocable to organizations exempt from federal income
15 tax by reason of Section 501(a) of the Internal
16 Revenue Code. This subparagraph (S) is exempt from the
17 provisions of Section 250;
18 (T) 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

HB4951 Enrolled- 61 -LRB103 38094 HLH 68226 b
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);
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 (iii) for property on which a bonus
21 depreciation deduction of 100% of the adjusted
22 basis was taken in a taxable year ending on or
23 after December 31, 2021, "x" equals the
24 depreciation deduction that would be allowed
25 on that property if the taxpayer had made the
26 election under Section 168(k)(7) of the

HB4951 Enrolled- 62 -LRB103 38094 HLH 68226 b
1 Internal Revenue Code to not claim bonus
2 depreciation on that property; and
3 (iv) for property on which a bonus
4 depreciation deduction of a percentage other
5 than 30%, 50% or 100% of the adjusted basis
6 was taken in a taxable year ending on or after
7 December 31, 2021, "x" equals "y" multiplied
8 by 100 times the percentage bonus depreciation
9 on the property (that is, 100(bonus%)) and
10 then divided by 100 times 1 minus the
11 percentage bonus depreciation on the property
12 (that is, 100(1-bonus%)).
13 The aggregate amount deducted under this
14 subparagraph in all taxable years for any one piece of
15 property may not exceed the amount of the bonus
16 depreciation deduction taken on that property on the
17 taxpayer's federal income tax return under subsection
18 (k) of Section 168 of the Internal Revenue Code. This
19 subparagraph (T) is exempt from the provisions of
20 Section 250;
21 (U) If the taxpayer sells, transfers, abandons, or
22 otherwise disposes of property for which the taxpayer
23 was required in any taxable year to make an addition
24 modification under subparagraph (E-10), then an amount
25 equal to that addition modification.
26 If the taxpayer continues to own property through

HB4951 Enrolled- 63 -LRB103 38094 HLH 68226 b
1 the last day of the last tax year for which a
2 subtraction is allowed with respect to that property
3 under subparagraph (T) and for which the taxpayer was
4 required in any taxable year to make an addition
5 modification under subparagraph (E-10), then an amount
6 equal to that addition modification.
7 The taxpayer is allowed to take the deduction
8 under this subparagraph only once with respect to any
9 one piece of property.
10 This subparagraph (U) is exempt from the
11 provisions of Section 250;
12 (V) The amount of: (i) any interest income (net of
13 the deductions allocable thereto) taken into account
14 for the taxable year with respect to a transaction
15 with a taxpayer that is required to make an addition
16 modification with respect to such transaction under
17 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
18 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
19 the amount of such addition modification, (ii) any
20 income from intangible property (net of the deductions
21 allocable thereto) taken into account for the taxable
22 year with respect to a transaction with a taxpayer
23 that is required to make an addition modification with
24 respect to such transaction under Section
25 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
26 203(d)(2)(D-8), but not to exceed the amount of such

HB4951 Enrolled- 64 -LRB103 38094 HLH 68226 b
1 addition modification, and (iii) any insurance premium
2 income (net of deductions allocable thereto) taken
3 into account for the taxable year with respect to a
4 transaction with a taxpayer that is required to make
5 an addition modification with respect to such
6 transaction under Section 203(a)(2)(D-19), Section
7 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
8 203(d)(2)(D-9), but not to exceed the amount of that
9 addition modification. This subparagraph (V) is exempt
10 from the provisions of Section 250;
11 (W) An amount equal to the interest income taken
12 into account for the taxable year (net of the
13 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

HB4951 Enrolled- 65 -LRB103 38094 HLH 68226 b
1 made for the same taxable year under Section
2 203(b)(2)(E-12) for interest paid, accrued, or
3 incurred, directly or indirectly, to the same person.
4 This subparagraph (W) is exempt from the provisions of
5 Section 250;
6 (X) An amount equal to the income from intangible
7 property taken into account for the taxable year (net
8 of the deductions allocable thereto) with respect to
9 transactions with (i) a foreign person who would be a
10 member of the taxpayer's unitary business group but
11 for the fact that the foreign person's business
12 activity outside the United States is 80% or more of
13 that person's total business activity and (ii) for
14 taxable years ending on or after December 31, 2008, 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, but
21 not to exceed the addition modification required to be
22 made for the same taxable year under Section
23 203(b)(2)(E-13) for intangible expenses and costs
24 paid, accrued, or incurred, directly or indirectly, to
25 the same foreign person. This subparagraph (X) is
26 exempt from the provisions of Section 250;

HB4951 Enrolled- 66 -LRB103 38094 HLH 68226 b
1 (Y) For taxable years ending on or after December
2 31, 2011, in the case of a taxpayer who was required to
3 add back any insurance premiums under Section
4 203(b)(2)(E-14), such taxpayer may elect to subtract
5 that part of a reimbursement received from the
6 insurance company equal to the amount of the expense
7 or loss (including expenses incurred by the insurance
8 company) that would have been taken into account as a
9 deduction for federal income tax purposes if the
10 expense or loss had been uninsured. If a taxpayer
11 makes the election provided for by this subparagraph
12 (Y), the insurer to which the premiums were paid must
13 add back to income the amount subtracted by the
14 taxpayer pursuant to this subparagraph (Y). This
15 subparagraph (Y) is exempt from the provisions of
16 Section 250;
17 (Z) The difference between the nondeductible
18 controlled foreign corporation dividends under Section
19 965(e)(3) of the Internal Revenue Code over the
20 taxable income of the taxpayer, computed without
21 regard to Section 965(e)(2)(A) of the Internal Revenue
22 Code, and without regard to any net operating loss
23 deduction. This subparagraph (Z) is exempt from the
24 provisions of Section 250; and
25 (AA) For taxable years beginning on or after
26 January 1, 2023, for any cannabis establishment

HB4951 Enrolled- 67 -LRB103 38094 HLH 68226 b
1 operating in this State and licensed under the
2 Cannabis Regulation and Tax Act or any cannabis
3 cultivation center or medical cannabis dispensing
4 organization operating in this State and licensed
5 under the Compassionate Use of Medical Cannabis
6 Program Act, an amount equal to the deductions that
7 were disallowed under Section 280E of the Internal
8 Revenue Code for the taxable year and that would not be
9 added back under this subsection. The provisions of
10 this subparagraph (AA) are exempt from the provisions
11 of Section 250.
12 (3) Special rule. For purposes of paragraph (2)(A),
13 "gross income" in the case of a life insurance company,
14 for tax years ending on and after December 31, 1994, and
15 prior to December 31, 2011, shall mean the gross
16 investment income for the taxable year and, for tax years
17 ending on or after December 31, 2011, shall mean all
18 amounts included in life insurance gross income under
19 Section 803(a)(3) of the Internal Revenue Code.
20 (c) Trusts and estates.
21 (1) In general. In the case of a trust or estate, base
22 income means an amount equal to the taxpayer's taxable
23 income for the taxable year as modified by paragraph (2).
24 (2) Modifications. Subject to the provisions of
25 paragraph (3), the taxable income referred to in paragraph

HB4951 Enrolled- 68 -LRB103 38094 HLH 68226 b
1 (1) shall be modified by adding thereto the sum of the
2 following amounts:
3 (A) An amount equal to all amounts paid or accrued
4 to the taxpayer as interest or dividends during the
5 taxable year to the extent excluded from gross income
6 in the computation of taxable income;
7 (B) In the case of (i) an estate, $600; (ii) a
8 trust which, under its governing instrument, is
9 required to distribute all of its income currently,
10 $300; and (iii) any other trust, $100, but in each such
11 case, only to the extent such amount was deducted in
12 the computation of taxable income;
13 (C) An amount equal to the amount of tax imposed by
14 this Act to the extent deducted from gross income in
15 the computation of taxable income for the taxable
16 year;
17 (D) The amount of any net operating loss deduction
18 taken in arriving at taxable income, other than a net
19 operating loss carried forward from a taxable year
20 ending prior to December 31, 1986;
21 (E) For taxable years in which a net operating
22 loss carryback or carryforward from a taxable year
23 ending prior to December 31, 1986 is an element of
24 taxable income under paragraph (1) of subsection (e)
25 or subparagraph (E) of paragraph (2) of subsection
26 (e), the amount by which addition modifications other

HB4951 Enrolled- 69 -LRB103 38094 HLH 68226 b
1 than those provided by this subparagraph (E) exceeded
2 subtraction modifications in such taxable year, with
3 the following limitations applied in the order that
4 they are listed:
5 (i) the addition modification relating to the
6 net operating loss carried back or forward to the
7 taxable year from any taxable year ending prior to
8 December 31, 1986 shall be reduced by the amount
9 of addition modification under this subparagraph
10 (E) which related to that net operating loss and
11 which was taken into account in calculating the
12 base income of an earlier taxable year, and
13 (ii) the addition modification relating to the
14 net operating loss carried back or forward to the
15 taxable year from any taxable year ending prior to
16 December 31, 1986 shall not exceed the amount of
17 such carryback or carryforward;
18 For taxable years in which there is a net
19 operating loss carryback or carryforward from more
20 than one other taxable year ending prior to December
21 31, 1986, the addition modification provided in this
22 subparagraph (E) shall be the sum of the amounts
23 computed independently under the preceding provisions
24 of this subparagraph (E) for each such taxable year;
25 (F) For taxable years ending on or after January
26 1, 1989, an amount equal to the tax deducted pursuant

HB4951 Enrolled- 70 -LRB103 38094 HLH 68226 b
1 to Section 164 of the Internal Revenue Code if the
2 trust or estate is claiming the same tax for purposes
3 of the Illinois foreign tax credit under Section 601
4 of this Act;
5 (G) An amount equal to the amount of the capital
6 gain deduction allowable under the Internal Revenue
7 Code, to the extent deducted from gross income in the
8 computation of taxable income;
9 (G-5) For taxable years ending after December 31,
10 1997, an amount equal to any eligible remediation
11 costs that the trust or estate deducted in computing
12 adjusted gross income and for which the trust or
13 estate claims a credit under subsection (l) of Section
14 201;
15 (G-10) For taxable years 2001 and thereafter, an
16 amount equal to the bonus depreciation deduction taken
17 on the taxpayer's federal income tax return for the
18 taxable year under subsection (k) of Section 168 of
19 the Internal Revenue Code; and
20 (G-11) If the taxpayer sells, transfers, abandons,
21 or otherwise disposes of property for which the
22 taxpayer was required in any taxable year to make an
23 addition modification under subparagraph (G-10), then
24 an amount equal to the aggregate amount of the
25 deductions taken in all taxable years under
26 subparagraph (R) with respect to that property.

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1 If the taxpayer continues to own property through
2 the last day of the last tax year for which a
3 subtraction is allowed with respect to that property
4 under subparagraph (R) and for which the taxpayer was
5 allowed in any taxable year to make a subtraction
6 modification under subparagraph (R), then an amount
7 equal to that subtraction modification.
8 The taxpayer is required to make the addition
9 modification under this subparagraph only once with
10 respect to any one piece of property;
11 (G-12) An amount equal to the amount otherwise
12 allowed as a deduction in computing base income for
13 interest paid, accrued, or incurred, directly or
14 indirectly, (i) for taxable years ending on or after
15 December 31, 2004, to a foreign person who would be a
16 member of the same unitary business group but for the
17 fact that the foreign person's business activity
18 outside the United States is 80% or more of the foreign
19 person's total business activity and (ii) for taxable
20 years ending on or after December 31, 2008, to a person
21 who would be a member of the same unitary business
22 group but for the fact that the person is prohibited
23 under Section 1501(a)(27) from being included in the
24 unitary business group because he or she is ordinarily
25 required to apportion business income under different
26 subsections of Section 304. The addition modification

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1 required by this subparagraph shall be reduced to the
2 extent that dividends were included in base income of
3 the unitary group for the same taxable year and
4 received by the taxpayer or by a member of the
5 taxpayer's unitary business group (including amounts
6 included in gross income pursuant to Sections 951
7 through 964 of the Internal Revenue Code and amounts
8 included in gross income under Section 78 of the
9 Internal Revenue Code) with respect to the stock of
10 the same person to whom the interest was paid,
11 accrued, or incurred.
12 This paragraph shall not apply to the following:
13 (i) an item of interest paid, accrued, or
14 incurred, directly or indirectly, to a person who
15 is subject in a foreign country or state, other
16 than a state which requires mandatory unitary
17 reporting, to a tax on or measured by net income
18 with respect to such interest; or
19 (ii) an item of interest paid, accrued, or
20 incurred, directly or indirectly, to a person if
21 the taxpayer can establish, based on a
22 preponderance of the evidence, both of the
23 following:
24 (a) the person, during the same taxable
25 year, paid, accrued, or incurred, the interest
26 to a person that is not a related member, and

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1 (b) the transaction giving rise to the
2 interest expense between the taxpayer and the
3 person did not have as a principal purpose the
4 avoidance of Illinois income tax, and is paid
5 pursuant to a contract or agreement that
6 reflects an arm's-length interest rate and
7 terms; or
8 (iii) the taxpayer can establish, based on
9 clear and convincing evidence, that the interest
10 paid, accrued, or incurred relates to a contract
11 or agreement entered into at arm's-length rates
12 and terms and the principal purpose for the
13 payment is not federal or Illinois tax avoidance;
14 or
15 (iv) an item of interest paid, accrued, or
16 incurred, directly or indirectly, to a person if
17 the taxpayer establishes by clear and convincing
18 evidence that the adjustments are unreasonable; or
19 if the taxpayer and the Director agree in writing
20 to the application or use of an alternative method
21 of apportionment under Section 304(f).
22 Nothing in this subsection shall preclude the
23 Director from making any other adjustment
24 otherwise allowed under Section 404 of this Act
25 for any tax year beginning after the effective
26 date of this amendment provided such adjustment is

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1 made pursuant to regulation adopted by the
2 Department and such regulations provide methods
3 and standards by which the Department will utilize
4 its authority under Section 404 of this Act;
5 (G-13) An amount equal to the amount of intangible
6 expenses and costs otherwise allowed as a deduction in
7 computing base income, and that were paid, accrued, or
8 incurred, directly or indirectly, (i) for taxable
9 years ending on or after December 31, 2004, to a
10 foreign person who would be a member of the same
11 unitary business group but for the fact that the
12 foreign person's business activity outside the United
13 States is 80% or more of that person's total business
14 activity and (ii) for taxable years ending on or after
15 December 31, 2008, to a person who would be a member of
16 the same unitary business group but for the fact that
17 the person is prohibited under Section 1501(a)(27)
18 from being included in the unitary business group
19 because he or she is ordinarily required to apportion
20 business income under different subsections of Section
21 304. The addition modification required by this
22 subparagraph shall be reduced to the extent that
23 dividends were included in base income of the unitary
24 group for the same taxable year and received by the
25 taxpayer or by a member of the taxpayer's unitary
26 business group (including amounts included in gross

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1 income pursuant to Sections 951 through 964 of the
2 Internal Revenue Code and amounts included in gross
3 income under Section 78 of the Internal Revenue Code)
4 with respect to the stock of the same person to whom
5 the intangible expenses and costs were directly or
6 indirectly paid, incurred, or accrued. The preceding
7 sentence shall not apply to the extent that the same
8 dividends caused a reduction to the addition
9 modification required under Section 203(c)(2)(G-12) of
10 this Act. As used in this subparagraph, the term
11 "intangible expenses and costs" includes: (1)
12 expenses, losses, and costs for or related to the
13 direct or indirect acquisition, use, maintenance or
14 management, ownership, sale, exchange, or any other
15 disposition of intangible property; (2) losses
16 incurred, directly or indirectly, from factoring
17 transactions or discounting transactions; (3) royalty,
18 patent, technical, and copyright fees; (4) licensing
19 fees; and (5) other similar expenses and costs. For
20 purposes of this subparagraph, "intangible property"
21 includes patents, patent applications, trade names,
22 trademarks, service marks, copyrights, mask works,
23 trade secrets, and similar types of intangible assets.
24 This paragraph shall not apply to the following:
25 (i) any item of intangible expenses or costs
26 paid, accrued, or incurred, directly or

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1 indirectly, from a transaction with a person who
2 is subject in a foreign country or state, other
3 than a state which requires mandatory unitary
4 reporting, to a tax on or measured by net income
5 with respect to such item; or
6 (ii) any item of intangible expense or cost
7 paid, accrued, or incurred, directly or
8 indirectly, if the taxpayer can establish, based
9 on a preponderance of the evidence, both of the
10 following:
11 (a) the person during the same taxable
12 year paid, accrued, or incurred, the
13 intangible expense or cost to a person that is
14 not a related member, and
15 (b) the transaction giving rise to the
16 intangible expense or cost between the
17 taxpayer and the person did not have as a
18 principal purpose the avoidance of Illinois
19 income tax, and is paid pursuant to a contract
20 or agreement that reflects arm's-length terms;
21 or
22 (iii) any item of intangible expense or cost
23 paid, accrued, or incurred, directly or
24 indirectly, from a transaction with a person if
25 the taxpayer establishes by clear and convincing
26 evidence, that the adjustments are unreasonable;

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1 or if the taxpayer and the Director agree in
2 writing to the application or use of an
3 alternative method of apportionment under Section
4 304(f);
5 Nothing in this subsection shall preclude the
6 Director from making any other adjustment
7 otherwise allowed under Section 404 of this Act
8 for any tax year beginning after the effective
9 date of this amendment provided such adjustment is
10 made pursuant to regulation adopted by the
11 Department and such regulations provide methods
12 and standards by which the Department will utilize
13 its authority under Section 404 of this Act;
14 (G-14) For taxable years ending on or after
15 December 31, 2008, an amount equal to the amount of
16 insurance premium expenses and costs otherwise allowed
17 as a deduction in computing base income, and that were
18 paid, accrued, or incurred, directly or indirectly, to
19 a person who would be a member of the same unitary
20 business group but for the fact that the person is
21 prohibited under Section 1501(a)(27) from being
22 included in the unitary business group because he or
23 she is ordinarily required to apportion business
24 income under different subsections of Section 304. The
25 addition modification required by this subparagraph
26 shall be reduced to the extent that dividends were

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1 included in base income of the unitary group for the
2 same taxable year and received by the taxpayer or by a
3 member of the taxpayer's unitary business group
4 (including amounts included in gross income under
5 Sections 951 through 964 of the Internal Revenue Code
6 and amounts included in gross income under Section 78
7 of the Internal Revenue Code) with respect to the
8 stock of the same person to whom the premiums and costs
9 were directly or indirectly paid, incurred, or
10 accrued. The preceding sentence does not apply to the
11 extent that the same dividends caused a reduction to
12 the addition modification required under Section
13 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
14 Act;
15 (G-15) An amount equal to the credit allowable to
16 the taxpayer under Section 218(a) of this Act,
17 determined without regard to Section 218(c) of this
18 Act;
19 (G-16) For taxable years ending on or after
20 December 31, 2017, an amount equal to the deduction
21 allowed under Section 199 of the Internal Revenue Code
22 for the taxable year;
23 and by deducting from the total so obtained the sum of the
24 following amounts:
25 (H) An amount equal to all amounts included in
26 such total pursuant to the provisions of Sections

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1 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
2 of the Internal Revenue Code or included in such total
3 as distributions under the provisions of any
4 retirement or disability plan for employees of any
5 governmental agency or unit, or retirement payments to
6 retired partners, which payments are excluded in
7 computing net earnings from self employment by Section
8 1402 of the Internal Revenue Code and regulations
9 adopted pursuant thereto;
10 (I) The valuation limitation amount;
11 (J) An amount equal to the amount of any tax
12 imposed by this Act which was refunded to the taxpayer
13 and included in such total for the taxable year;
14 (K) An amount equal to all amounts included in
15 taxable income as modified by subparagraphs (A), (B),
16 (C), (D), (E), (F) and (G) which are exempt from
17 taxation by this State either by reason of its
18 statutes or Constitution or by reason of the
19 Constitution, treaties or statutes of the United
20 States; provided that, in the case of any statute of
21 this State that exempts income derived from bonds or
22 other obligations from the tax imposed under this Act,
23 the amount exempted shall be the interest net of bond
24 premium amortization;
25 (L) With the exception of any amounts subtracted
26 under subparagraph (K), an amount equal to the sum of

HB4951 Enrolled- 80 -LRB103 38094 HLH 68226 b
1 all amounts disallowed as deductions by (i) Sections
2 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
3 and all amounts of expenses allocable to interest and
4 disallowed as deductions by Section 265(a)(1) of the
5 Internal Revenue Code; and (ii) for taxable years
6 ending on or after August 13, 1999, Sections
7 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
8 Internal Revenue Code, plus, (iii) for taxable years
9 ending on or after December 31, 2011, Section
10 45G(e)(3) of the Internal Revenue Code and, for
11 taxable years ending on or after December 31, 2008,
12 any amount included in gross income under Section 87
13 of the Internal Revenue Code; the provisions of this
14 subparagraph are exempt from the provisions of Section
15 250;
16 (M) An amount equal to those dividends included in
17 such total which were paid by a corporation which
18 conducts business operations in a River Edge
19 Redevelopment Zone or zones created under the River
20 Edge Redevelopment Zone Act and conducts substantially
21 all of its operations in a River Edge Redevelopment
22 Zone or zones. This subparagraph (M) is exempt from
23 the provisions of Section 250;
24 (N) An amount equal to any contribution made to a
25 job training project established pursuant to the Tax
26 Increment Allocation Redevelopment Act;

HB4951 Enrolled- 81 -LRB103 38094 HLH 68226 b
1 (O) An amount equal to those dividends included in
2 such total that were paid by a corporation that
3 conducts business operations in a federally designated
4 Foreign Trade Zone or Sub-Zone and that is designated
5 a High Impact Business located in Illinois; provided
6 that dividends eligible for the deduction provided in
7 subparagraph (M) of paragraph (2) of this subsection
8 shall not be eligible for the deduction provided under
9 this subparagraph (O);
10 (P) An amount equal to the amount of the deduction
11 used to compute the federal income tax credit for
12 restoration of substantial amounts held under claim of
13 right for the taxable year pursuant to Section 1341 of
14 the Internal Revenue Code;
15 (Q) For taxable year 1999 and thereafter, an
16 amount equal to the amount of any (i) distributions,
17 to the extent includible in gross income for federal
18 income tax purposes, made to the taxpayer because of
19 his or her status as a victim of persecution for racial
20 or religious reasons by Nazi Germany or any other Axis
21 regime or as an heir of the victim and (ii) items of
22 income, to the extent includible in gross income for
23 federal income tax purposes, attributable to, derived
24 from or in any way related to assets stolen from,
25 hidden from, or otherwise lost to a victim of
26 persecution for racial or religious reasons by Nazi

HB4951 Enrolled- 82 -LRB103 38094 HLH 68226 b
1 Germany or any other Axis regime immediately prior to,
2 during, and immediately after World War II, including,
3 but not limited to, interest on the proceeds
4 receivable as insurance under policies issued to a
5 victim of persecution for racial or religious reasons
6 by Nazi Germany or any other Axis regime by European
7 insurance companies immediately prior to and during
8 World War II; provided, however, this subtraction from
9 federal adjusted gross income does not apply to assets
10 acquired with such assets or with the proceeds from
11 the sale of such assets; provided, further, this
12 paragraph shall only apply to a taxpayer who was the
13 first recipient of such assets after their recovery
14 and who is a victim of persecution for racial or
15 religious reasons by Nazi Germany or any other Axis
16 regime or as an heir of the victim. The amount of and
17 the eligibility for any public assistance, benefit, or
18 similar entitlement is not affected by the inclusion
19 of items (i) and (ii) of this paragraph in gross income
20 for federal income tax purposes. This paragraph is
21 exempt from the provisions of Section 250;
22 (R) For taxable years 2001 and thereafter, for the
23 taxable year in which the bonus depreciation deduction
24 is taken on the taxpayer's federal income tax return
25 under subsection (k) of Section 168 of the Internal
26 Revenue Code and for each applicable taxable year

HB4951 Enrolled- 83 -LRB103 38094 HLH 68226 b
1 thereafter, an amount equal to "x", where:
2 (1) "y" equals the amount of the depreciation
3 deduction taken for the taxable year on the
4 taxpayer's federal income tax return on property
5 for which the bonus depreciation deduction was
6 taken in any year under subsection (k) of Section
7 168 of the Internal Revenue Code, but not
8 including the bonus depreciation deduction;
9 (2) for taxable years ending on or before
10 December 31, 2005, "x" equals "y" multiplied by 30
11 and then divided by 70 (or "y" multiplied by
12 0.429); and
13 (3) for taxable years ending after December
14 31, 2005:
15 (i) for property on which a bonus
16 depreciation deduction of 30% of the adjusted
17 basis was taken, "x" equals "y" multiplied by
18 30 and then divided by 70 (or "y" multiplied
19 by 0.429);
20 (ii) for property on which a bonus
21 depreciation deduction of 50% of the adjusted
22 basis was taken, "x" equals "y" multiplied by
23 1.0;
24 (iii) for property on which a bonus
25 depreciation deduction of 100% of the adjusted
26 basis was taken in a taxable year ending on or

HB4951 Enrolled- 84 -LRB103 38094 HLH 68226 b
1 after December 31, 2021, "x" equals the
2 depreciation deduction that would be allowed
3 on that property if the taxpayer had made the
4 election under Section 168(k)(7) of the
5 Internal Revenue Code to not claim bonus
6 depreciation on that property; and
7 (iv) for property on which a bonus
8 depreciation deduction of a percentage other
9 than 30%, 50% or 100% of the adjusted basis
10 was taken in a taxable year ending on or after
11 December 31, 2021, "x" equals "y" multiplied
12 by 100 times the percentage bonus depreciation
13 on the property (that is, 100(bonus%)) and
14 then divided by 100 times 1 minus the
15 percentage bonus depreciation on the property
16 (that is, 100(1-bonus%)).
17 The aggregate amount deducted under this
18 subparagraph in all taxable years for any one piece of
19 property may not exceed the amount of the bonus
20 depreciation deduction taken on that property on the
21 taxpayer's federal income tax return under subsection
22 (k) of Section 168 of the Internal Revenue Code. This
23 subparagraph (R) is exempt from the provisions of
24 Section 250;
25 (S) If the taxpayer sells, transfers, abandons, or
26 otherwise disposes of property for which the taxpayer

HB4951 Enrolled- 85 -LRB103 38094 HLH 68226 b
1 was required in any taxable year to make an addition
2 modification under subparagraph (G-10), then an amount
3 equal to that addition modification.
4 If the taxpayer continues to own property through
5 the last day of the last tax year for which a
6 subtraction is allowed with respect to that property
7 under subparagraph (R) and for which the taxpayer was
8 required in any taxable year to make an addition
9 modification under subparagraph (G-10), then an amount
10 equal to that addition modification.
11 The taxpayer is allowed to take the deduction
12 under this subparagraph only once with respect to any
13 one piece of property.
14 This subparagraph (S) is exempt from the
15 provisions of Section 250;
16 (T) The amount of (i) any interest income (net of
17 the deductions allocable thereto) taken into account
18 for the taxable year with respect to a transaction
19 with a taxpayer that is required to make an addition
20 modification with respect to such transaction under
21 Section 203(a)(2)(D-17), 203(b)(2)(E-12),
22 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
23 the amount of such addition modification and (ii) any
24 income from intangible property (net of the deductions
25 allocable thereto) taken into account for the taxable
26 year with respect to a transaction with a taxpayer

HB4951 Enrolled- 86 -LRB103 38094 HLH 68226 b
1 that is required to make an addition modification with
2 respect to such transaction under Section
3 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
4 203(d)(2)(D-8), but not to exceed the amount of such
5 addition modification. This subparagraph (T) is exempt
6 from the provisions of Section 250;
7 (U) An amount equal to the interest income taken
8 into account for the taxable year (net of the
9 deductions allocable thereto) with respect to
10 transactions with (i) a foreign person who would be a
11 member of the taxpayer's unitary business group but
12 for the fact the foreign person's business activity
13 outside the United States is 80% or more of that
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, but not to exceed the
22 addition modification required to be made for the same
23 taxable year under Section 203(c)(2)(G-12) for
24 interest paid, accrued, or incurred, directly or
25 indirectly, to the same person. This subparagraph (U)
26 is exempt from the provisions of Section 250;

HB4951 Enrolled- 87 -LRB103 38094 HLH 68226 b
1 (V) An amount equal to the income from intangible
2 property taken into account for the taxable year (net
3 of the deductions allocable thereto) with respect to
4 transactions with (i) a foreign person who would be a
5 member of the taxpayer's unitary business group but
6 for the fact that the foreign person's business
7 activity outside the United States is 80% or more of
8 that person's total business activity and (ii) for
9 taxable years ending on or after December 31, 2008, to
10 a person who would be a member of the same unitary
11 business group but for the fact that the person is
12 prohibited under Section 1501(a)(27) from being
13 included in the unitary business group because he or
14 she is ordinarily required to apportion business
15 income under different subsections of Section 304, but
16 not to exceed the addition modification required to be
17 made for the same taxable year under Section
18 203(c)(2)(G-13) for intangible expenses and costs
19 paid, accrued, or incurred, directly or indirectly, to
20 the same foreign person. This subparagraph (V) is
21 exempt from the provisions of Section 250;
22 (W) in the case of an estate, an amount equal to
23 all amounts included in such total pursuant to the
24 provisions of Section 111 of the Internal Revenue Code
25 as a recovery of items previously deducted by the
26 decedent from adjusted gross income in the computation

HB4951 Enrolled- 88 -LRB103 38094 HLH 68226 b
1 of taxable income. This subparagraph (W) is exempt
2 from Section 250;
3 (X) an amount equal to the refund included in such
4 total of any tax deducted for federal income tax
5 purposes, to the extent that deduction was added back
6 under subparagraph (F). This subparagraph (X) is
7 exempt from the provisions of Section 250;
8 (Y) For taxable years ending on or after December
9 31, 2011, in the case of a taxpayer who was required to
10 add back any insurance premiums under Section
11 203(c)(2)(G-14), such taxpayer may elect to subtract
12 that part of a reimbursement received from the
13 insurance company equal to the amount of the expense
14 or loss (including expenses incurred by the insurance
15 company) that would have been taken into account as a
16 deduction for federal income tax purposes if the
17 expense or loss had been uninsured. If a taxpayer
18 makes the election provided for by this subparagraph
19 (Y), the insurer to which the premiums were paid must
20 add back to income the amount subtracted by the
21 taxpayer pursuant to this subparagraph (Y). This
22 subparagraph (Y) is exempt from the provisions of
23 Section 250;
24 (Z) For taxable years beginning after December 31,
25 2018 and before January 1, 2026, the amount of excess
26 business loss of the taxpayer disallowed as a

HB4951 Enrolled- 89 -LRB103 38094 HLH 68226 b
1 deduction by Section 461(l)(1)(B) of the Internal
2 Revenue Code; and
3 (AA) For taxable years beginning on or after
4 January 1, 2023, for any cannabis establishment
5 operating in this State and licensed under the
6 Cannabis Regulation and Tax Act or any cannabis
7 cultivation center or medical cannabis dispensing
8 organization operating in this State and licensed
9 under the Compassionate Use of Medical Cannabis
10 Program Act, an amount equal to the deductions that
11 were disallowed under Section 280E of the Internal
12 Revenue Code for the taxable year and that would not be
13 added back under this subsection. The provisions of
14 this subparagraph (AA) are exempt from the provisions
15 of Section 250.
16 (3) Limitation. The amount of any modification
17 otherwise required under this subsection shall, under
18 regulations prescribed by the Department, be adjusted by
19 any amounts included therein which were properly paid,
20 credited, or required to be distributed, or permanently
21 set aside for charitable purposes pursuant to Internal
22 Revenue Code Section 642(c) during the taxable year.
23 (d) Partnerships.
24 (1) In general. In the case of a partnership, base
25 income means an amount equal to the taxpayer's taxable

HB4951 Enrolled- 90 -LRB103 38094 HLH 68226 b
1 income for the taxable year as modified by paragraph (2).
2 (2) Modifications. The taxable income referred to in
3 paragraph (1) shall be modified by adding thereto the sum
4 of the following amounts:
5 (A) An amount equal to all amounts paid or accrued
6 to the taxpayer as interest or dividends during the
7 taxable year to the extent excluded from gross income
8 in the computation of taxable income;
9 (B) An amount equal to the amount of tax imposed by
10 this Act to the extent deducted from gross income for
11 the taxable year;
12 (C) The amount of deductions allowed to the
13 partnership pursuant to Section 707 (c) of the
14 Internal Revenue Code in calculating its taxable
15 income;
16 (D) An amount equal to the amount of the capital
17 gain deduction allowable under the Internal Revenue
18 Code, to the extent deducted from gross income in the
19 computation of taxable income;
20 (D-5) For taxable years 2001 and thereafter, an
21 amount equal to the bonus depreciation deduction taken
22 on the taxpayer's federal income tax return for the
23 taxable year under subsection (k) of Section 168 of
24 the Internal Revenue Code;
25 (D-6) If the taxpayer sells, transfers, abandons,
26 or otherwise disposes of property for which the

HB4951 Enrolled- 91 -LRB103 38094 HLH 68226 b
1 taxpayer was required in any taxable year to make an
2 addition modification under subparagraph (D-5), then
3 an amount equal to the aggregate amount of the
4 deductions taken in all taxable years under
5 subparagraph (O) with respect to that property.
6 If the taxpayer continues to own property through
7 the last day of the last tax year for which a
8 subtraction is allowed with respect to that property
9 under subparagraph (O) and for which the taxpayer was
10 allowed in any taxable year to make a subtraction
11 modification under subparagraph (O), then an amount
12 equal to that subtraction modification.
13 The taxpayer is required to make the addition
14 modification under this subparagraph only once with
15 respect to any one piece of property;
16 (D-7) An amount equal to the amount otherwise
17 allowed as a deduction in computing base income for
18 interest paid, accrued, or incurred, directly or
19 indirectly, (i) for taxable years ending on or after
20 December 31, 2004, to a foreign person who would be a
21 member of the same unitary business group but for the
22 fact the foreign person's business activity outside
23 the United States is 80% or more of the foreign
24 person's total business activity and (ii) for taxable
25 years ending on or after December 31, 2008, to a person
26 who would be a member of the same unitary business

HB4951 Enrolled- 92 -LRB103 38094 HLH 68226 b
1 group but for the fact that the person is prohibited
2 under Section 1501(a)(27) from being included in the
3 unitary business group because he or she is ordinarily
4 required to apportion business income under different
5 subsections of Section 304. The addition modification
6 required by this subparagraph shall be reduced to the
7 extent that dividends were included in base income of
8 the unitary group for the same taxable year and
9 received by the taxpayer or by a member of the
10 taxpayer's unitary business group (including amounts
11 included in gross income pursuant to Sections 951
12 through 964 of the Internal Revenue Code and amounts
13 included in gross income under Section 78 of the
14 Internal Revenue Code) with respect to the stock of
15 the same person to whom the interest was paid,
16 accrued, or incurred.
17 This paragraph shall not apply to the following:
18 (i) an item of interest paid, accrued, or
19 incurred, directly or indirectly, to a person who
20 is subject in a foreign country or state, other
21 than a state which requires mandatory unitary
22 reporting, to a tax on or measured by net income
23 with respect to such interest; or
24 (ii) an item of interest paid, accrued, or
25 incurred, directly or indirectly, to a person if
26 the taxpayer can establish, based on a

HB4951 Enrolled- 93 -LRB103 38094 HLH 68226 b
1 preponderance of the evidence, both of the
2 following:
3 (a) the person, during the same taxable
4 year, paid, accrued, or incurred, the interest
5 to a person that is not a related member, and
6 (b) the transaction giving rise to the
7 interest expense between the taxpayer and the
8 person did not have as a principal purpose the
9 avoidance of Illinois income tax, and is paid
10 pursuant to a contract or agreement that
11 reflects an arm's-length interest rate and
12 terms; or
13 (iii) the taxpayer can establish, based on
14 clear and convincing evidence, that the interest
15 paid, accrued, or incurred relates to a contract
16 or agreement entered into at arm's-length rates
17 and terms and the principal purpose for the
18 payment is not federal or Illinois tax avoidance;
19 or
20 (iv) an item of interest paid, accrued, or
21 incurred, directly or indirectly, to a person if
22 the taxpayer establishes by clear and convincing
23 evidence that the adjustments are unreasonable; or
24 if the taxpayer and the Director agree in writing
25 to the application or use of an alternative method
26 of apportionment under Section 304(f).

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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; and
10 (D-8) An amount equal to the amount of intangible
11 expenses and costs otherwise allowed as a deduction in
12 computing base income, and that were paid, accrued, or
13 incurred, directly or indirectly, (i) for taxable
14 years ending on or after December 31, 2004, to a
15 foreign person who would be a member of the same
16 unitary business group but for the fact that the
17 foreign person's business activity outside the United
18 States is 80% or more of that person's total business
19 activity and (ii) for taxable years ending on or after
20 December 31, 2008, to a person who would be a member of
21 the same unitary business group but for the fact that
22 the person is prohibited under Section 1501(a)(27)
23 from being included in the unitary business group
24 because he or she is ordinarily required to apportion
25 business income under different subsections of Section
26 304. The addition modification required by this

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1 subparagraph shall be reduced to the extent that
2 dividends were included in base income of the unitary
3 group for the same taxable year and received by the
4 taxpayer or by a member of the taxpayer's unitary
5 business group (including amounts included in gross
6 income pursuant to Sections 951 through 964 of the
7 Internal Revenue Code and amounts included in gross
8 income under Section 78 of the Internal Revenue Code)
9 with respect to the stock of the same person to whom
10 the intangible expenses and costs were directly or
11 indirectly paid, incurred or accrued. The preceding
12 sentence shall not apply to the extent that the same
13 dividends caused a reduction to the addition
14 modification required under Section 203(d)(2)(D-7) of
15 this Act. As used in this subparagraph, the term
16 "intangible expenses and costs" includes (1) expenses,
17 losses, and costs for, or related to, the direct or
18 indirect acquisition, use, maintenance or management,
19 ownership, sale, exchange, or any other disposition of
20 intangible property; (2) losses incurred, directly or
21 indirectly, from factoring transactions or discounting
22 transactions; (3) royalty, patent, technical, and
23 copyright fees; (4) licensing fees; and (5) other
24 similar expenses and costs. For purposes of this
25 subparagraph, "intangible property" includes patents,
26 patent applications, trade names, trademarks, service

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1 marks, copyrights, mask works, trade secrets, and
2 similar types of intangible assets;
3 This paragraph shall not apply to the following:
4 (i) any item of intangible expenses or costs
5 paid, accrued, or incurred, directly or
6 indirectly, from a transaction with a person who
7 is subject in a foreign country or state, other
8 than a state which requires mandatory unitary
9 reporting, to a tax on or measured by net income
10 with respect to such item; or
11 (ii) any item of intangible expense or cost
12 paid, accrued, or incurred, directly or
13 indirectly, if the taxpayer can establish, based
14 on a preponderance of the evidence, both of the
15 following:
16 (a) the person during the same taxable
17 year paid, accrued, or incurred, the
18 intangible expense or cost to a person that is
19 not a related member, and
20 (b) the transaction giving rise to the
21 intangible expense or cost between the
22 taxpayer and the person did not have as a
23 principal purpose the avoidance of Illinois
24 income tax, and is paid pursuant to a contract
25 or agreement that reflects arm's-length terms;
26 or

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1 (iii) any item of intangible expense or cost
2 paid, accrued, or incurred, directly or
3 indirectly, from a transaction with a person if
4 the taxpayer establishes by clear and convincing
5 evidence, that the adjustments are unreasonable;
6 or if the taxpayer and the Director agree in
7 writing to the application or use of an
8 alternative method of apportionment under Section
9 304(f);
10 Nothing in this subsection shall preclude the
11 Director from making any other adjustment
12 otherwise allowed under Section 404 of this Act
13 for any tax year beginning after the effective
14 date of this amendment provided such adjustment is
15 made pursuant to regulation adopted by the
16 Department and such regulations provide methods
17 and standards by which the Department will utilize
18 its authority under Section 404 of this Act;
19 (D-9) For taxable years ending on or after
20 December 31, 2008, an amount equal to the amount of
21 insurance premium expenses and costs otherwise allowed
22 as a deduction in computing base income, and that were
23 paid, accrued, or incurred, directly or indirectly, to
24 a person who would be a member of the same unitary
25 business group but for the fact that the person is
26 prohibited under Section 1501(a)(27) from being

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1 included in the unitary business group because he or
2 she is ordinarily required to apportion business
3 income under different subsections of Section 304. The
4 addition modification required by this subparagraph
5 shall be reduced to the extent that dividends were
6 included in base income of the unitary group for the
7 same taxable year and received by the taxpayer or by a
8 member of the taxpayer's unitary business group
9 (including amounts included in gross income under
10 Sections 951 through 964 of the Internal Revenue Code
11 and amounts included in gross income under Section 78
12 of the Internal Revenue Code) with respect to the
13 stock of the same person to whom the premiums and costs
14 were directly or indirectly paid, incurred, or
15 accrued. The preceding sentence does not apply to the
16 extent that the same dividends caused a reduction to
17 the addition modification required under Section
18 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
19 (D-10) An amount equal to the credit allowable to
20 the taxpayer under Section 218(a) of this Act,
21 determined without regard to Section 218(c) of this
22 Act;
23 (D-11) For taxable years ending on or after
24 December 31, 2017, an amount equal to the deduction
25 allowed under Section 199 of the Internal Revenue Code
26 for the taxable year;

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1 and by deducting from the total so obtained the following
2 amounts:
3 (E) The valuation limitation amount;
4 (F) 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 (G) An amount equal to all amounts included in
8 taxable income as modified by subparagraphs (A), (B),
9 (C) and (D) which are exempt from taxation by this
10 State either by reason of its statutes or Constitution
11 or by reason of the Constitution, treaties or statutes
12 of the United States; provided that, in the case of any
13 statute of this State that exempts income derived from
14 bonds or other obligations from the tax imposed under
15 this Act, the amount exempted shall be the interest
16 net of bond premium amortization;
17 (H) Any income of the partnership which
18 constitutes personal service income as defined in
19 Section 1348(b)(1) of the Internal Revenue Code (as in
20 effect December 31, 1981) or a reasonable allowance
21 for compensation paid or accrued for services rendered
22 by partners to the partnership, whichever is greater;
23 this subparagraph (H) is exempt from the provisions of
24 Section 250;
25 (I) An amount equal to all amounts of income
26 distributable to an entity subject to the Personal

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1 Property Tax Replacement Income Tax imposed by
2 subsections (c) and (d) of Section 201 of this Act
3 including amounts distributable to organizations
4 exempt from federal income tax by reason of Section
5 501(a) of the Internal Revenue Code; this subparagraph
6 (I) is exempt from the provisions of Section 250;
7 (J) With the exception of any amounts subtracted
8 under subparagraph (G), an amount equal to the sum of
9 all amounts disallowed as deductions by (i) Sections
10 171(a)(2) and 265(a)(2) of the Internal Revenue Code,
11 and all amounts of expenses allocable to interest and
12 disallowed as deductions by Section 265(a)(1) of the
13 Internal Revenue Code; and (ii) for taxable years
14 ending on or after August 13, 1999, Sections
15 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
16 Internal Revenue Code, plus, (iii) for taxable years
17 ending on or after December 31, 2011, Section
18 45G(e)(3) of the Internal Revenue Code and, for
19 taxable years ending on or after December 31, 2008,
20 any amount included in gross income under Section 87
21 of the Internal Revenue Code; the provisions of this
22 subparagraph are exempt from the provisions of Section
23 250;
24 (K) An amount equal to those dividends included in
25 such total which were paid by a corporation which
26 conducts business operations in a River Edge

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1 Redevelopment Zone or zones created under the River
2 Edge Redevelopment Zone Act and conducts substantially
3 all of its operations from a River Edge Redevelopment
4 Zone or zones. This subparagraph (K) is exempt from
5 the provisions of Section 250;
6 (L) An amount equal to any contribution made to a
7 job training project established pursuant to the Real
8 Property Tax Increment Allocation Redevelopment Act;
9 (M) An amount equal to those dividends included in
10 such total that were paid by a corporation that
11 conducts business operations in a federally designated
12 Foreign Trade Zone or Sub-Zone and that is designated
13 a High Impact Business located in Illinois; provided
14 that dividends eligible for the deduction provided in
15 subparagraph (K) of paragraph (2) of this subsection
16 shall not be eligible for the deduction provided under
17 this subparagraph (M);
18 (N) An amount equal to the amount of the deduction
19 used to compute the federal income tax credit for
20 restoration of substantial amounts held under claim of
21 right for the taxable year pursuant to Section 1341 of
22 the Internal Revenue Code;
23 (O) For taxable years 2001 and thereafter, for the
24 taxable year in which the bonus depreciation deduction
25 is taken on the taxpayer's federal income tax return
26 under subsection (k) of Section 168 of the Internal

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1 Revenue Code and for each applicable taxable year
2 thereafter, an amount equal to "x", where:
3 (1) "y" equals the amount of the depreciation
4 deduction taken for the taxable year on the
5 taxpayer's federal income tax return on property
6 for which the bonus depreciation deduction was
7 taken in any year under subsection (k) of Section
8 168 of the Internal Revenue Code, but not
9 including the bonus depreciation deduction;
10 (2) for taxable years ending on or before
11 December 31, 2005, "x" equals "y" multiplied by 30
12 and then divided by 70 (or "y" multiplied by
13 0.429); and
14 (3) for taxable years ending after December
15 31, 2005:
16 (i) for property on which a bonus
17 depreciation deduction of 30% of the adjusted
18 basis was taken, "x" equals "y" multiplied by
19 30 and then divided by 70 (or "y" multiplied
20 by 0.429);
21 (ii) for property on which a bonus
22 depreciation deduction of 50% of the adjusted
23 basis was taken, "x" equals "y" multiplied by
24 1.0;
25 (iii) for property on which a bonus
26 depreciation deduction of 100% of the adjusted

HB4951 Enrolled- 103 -LRB103 38094 HLH 68226 b
1 basis was taken in a taxable year ending on or
2 after December 31, 2021, "x" equals the
3 depreciation deduction that would be allowed
4 on that property if the taxpayer had made the
5 election under Section 168(k)(7) of the
6 Internal Revenue Code to not claim bonus
7 depreciation on that property; and
8 (iv) for property on which a bonus
9 depreciation deduction of a percentage other
10 than 30%, 50% or 100% of the adjusted basis
11 was taken in a taxable year ending on or after
12 December 31, 2021, "x" equals "y" multiplied
13 by 100 times the percentage bonus depreciation
14 on the property (that is, 100(bonus%)) and
15 then divided by 100 times 1 minus the
16 percentage bonus depreciation on the property
17 (that is, 100(1-bonus%)).
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 (O) is exempt from the provisions of
25 Section 250;
26 (P) If the taxpayer sells, transfers, abandons, or

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1 otherwise disposes of property for which the taxpayer
2 was required in any taxable year to make an addition
3 modification under subparagraph (D-5), 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 a
7 subtraction is allowed with respect to that property
8 under subparagraph (O) and for which the taxpayer was
9 required in any taxable year to make an addition
10 modification under subparagraph (D-5), 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 (P) is exempt from the
16 provisions of Section 250;
17 (Q) 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 and (ii) any
25 income from intangible property (net of the deductions
26 allocable thereto) taken into account for the taxable

HB4951 Enrolled- 105 -LRB103 38094 HLH 68226 b
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. This subparagraph (Q) is exempt
7 from Section 250;
8 (R) An amount equal to the interest income taken
9 into account for the taxable year (net of the
10 deductions allocable thereto) with respect to
11 transactions with (i) a foreign person who would be a
12 member of the taxpayer's unitary business group but
13 for the fact that the foreign person's business
14 activity outside the United States is 80% or more of
15 that person's total business activity and (ii) for
16 taxable years ending on or after December 31, 2008, to
17 a person who would be a member of the same unitary
18 business group but for the fact that the person is
19 prohibited under Section 1501(a)(27) from being
20 included in the unitary business group because he or
21 she is ordinarily required to apportion business
22 income under different subsections of Section 304, but
23 not to exceed the addition modification required to be
24 made for the same taxable year under Section
25 203(d)(2)(D-7) for interest paid, accrued, or
26 incurred, directly or indirectly, to the same person.

HB4951 Enrolled- 106 -LRB103 38094 HLH 68226 b
1 This subparagraph (R) is exempt from Section 250;
2 (S) An amount equal to the income from intangible
3 property taken into account for the taxable year (net
4 of the deductions allocable thereto) with respect to
5 transactions with (i) a foreign person who would be a
6 member of the taxpayer's unitary business group but
7 for the fact that the foreign person's business
8 activity outside the United States is 80% or more of
9 that person's total business activity and (ii) for
10 taxable years ending on or after December 31, 2008, to
11 a person who would be a member of the same unitary
12 business group but for the fact that the person is
13 prohibited under Section 1501(a)(27) from being
14 included in the unitary business group because he or
15 she is ordinarily required to apportion business
16 income under different subsections of Section 304, but
17 not to exceed the addition modification required to be
18 made for the same taxable year under Section
19 203(d)(2)(D-8) for intangible expenses and costs paid,
20 accrued, or incurred, directly or indirectly, to the
21 same person. This subparagraph (S) is exempt from
22 Section 250;
23 (T) For taxable years ending on or after December
24 31, 2011, in the case of a taxpayer who was required to
25 add back any insurance premiums under Section
26 203(d)(2)(D-9), such taxpayer may elect to subtract

HB4951 Enrolled- 107 -LRB103 38094 HLH 68226 b
1 that part of a reimbursement received from the
2 insurance company equal to the amount of the expense
3 or loss (including expenses incurred by the insurance
4 company) that would have been taken into account as a
5 deduction for federal income tax purposes if the
6 expense or loss had been uninsured. If a taxpayer
7 makes the election provided for by this subparagraph
8 (T), the insurer to which the premiums were paid must
9 add back to income the amount subtracted by the
10 taxpayer pursuant to this subparagraph (T). This
11 subparagraph (T) is exempt from the provisions of
12 Section 250; and
13 (U) For taxable years beginning on or after
14 January 1, 2023, for any cannabis establishment
15 operating in this State and licensed under the
16 Cannabis Regulation and Tax Act or any cannabis
17 cultivation center or medical cannabis dispensing
18 organization operating in this State and licensed
19 under the Compassionate Use of Medical Cannabis
20 Program Act, an amount equal to the deductions that
21 were disallowed under Section 280E of the Internal
22 Revenue Code for the taxable year and that would not be
23 added back under this subsection. The provisions of
24 this subparagraph (U) are exempt from the provisions
25 of Section 250.

HB4951 Enrolled- 108 -LRB103 38094 HLH 68226 b
1 (e) Gross income; adjusted gross income; taxable income.
2 (1) In general. Subject to the provisions of paragraph
3 (2) and subsection (b)(3), for purposes of this Section
4 and Section 803(e), a taxpayer's gross income, adjusted
5 gross income, or taxable income for the taxable year shall
6 mean the amount of gross income, adjusted gross income or
7 taxable income properly reportable for federal income tax
8 purposes for the taxable year under the provisions of the
9 Internal Revenue Code. Taxable income may be less than
10 zero. However, for taxable years ending on or after
11 December 31, 1986, net operating loss carryforwards from
12 taxable years ending prior to December 31, 1986, may not
13 exceed the sum of federal taxable income for the taxable
14 year before net operating loss deduction, plus the excess
15 of addition modifications over subtraction modifications
16 for the taxable year. For taxable years ending prior to
17 December 31, 1986, taxable income may never be an amount
18 in excess of the net operating loss for the taxable year as
19 defined in subsections (c) and (d) of Section 172 of the
20 Internal Revenue Code, provided that when taxable income
21 of a corporation (other than a Subchapter S corporation),
22 trust, or estate is less than zero and addition
23 modifications, other than those provided by subparagraph
24 (E) of paragraph (2) of subsection (b) for corporations or
25 subparagraph (E) of paragraph (2) of subsection (c) for
26 trusts and estates, exceed subtraction modifications, an

HB4951 Enrolled- 109 -LRB103 38094 HLH 68226 b
1 addition modification must be made under those
2 subparagraphs for any other taxable year to which the
3 taxable income less than zero (net operating loss) is
4 applied under Section 172 of the Internal Revenue Code or
5 under subparagraph (E) of paragraph (2) of this subsection
6 (e) applied in conjunction with Section 172 of the
7 Internal Revenue Code.
8 (2) Special rule. For purposes of paragraph (1) of
9 this subsection, the taxable income properly reportable
10 for federal income tax purposes shall mean:
11 (A) Certain life insurance companies. In the case
12 of a life insurance company subject to the tax imposed
13 by Section 801 of the Internal Revenue Code, life
14 insurance company taxable income, plus the amount of
15 distribution from pre-1984 policyholder surplus
16 accounts as calculated under Section 815a of the
17 Internal Revenue Code;
18 (B) Certain other insurance companies. In the case
19 of mutual insurance companies subject to the tax
20 imposed by Section 831 of the Internal Revenue Code,
21 insurance company taxable income;
22 (C) Regulated investment companies. In the case of
23 a regulated investment company subject to the tax
24 imposed by Section 852 of the Internal Revenue Code,
25 investment company taxable income;
26 (D) Real estate investment trusts. In the case of

HB4951 Enrolled- 110 -LRB103 38094 HLH 68226 b
1 a real estate investment trust subject to the tax
2 imposed by Section 857 of the Internal Revenue Code,
3 real estate investment trust taxable income;
4 (E) Consolidated corporations. In the case of a
5 corporation which is a member of an affiliated group
6 of corporations filing a consolidated income tax
7 return for the taxable year for federal income tax
8 purposes, taxable income determined as if such
9 corporation had filed a separate return for federal
10 income tax purposes for the taxable year and each
11 preceding taxable year for which it was a member of an
12 affiliated group. For purposes of this subparagraph,
13 the taxpayer's separate taxable income shall be
14 determined as if the election provided by Section
15 243(b)(2) of the Internal Revenue Code had been in
16 effect for all such years;
17 (F) Cooperatives. In the case of a cooperative
18 corporation or association, the taxable income of such
19 organization determined in accordance with the
20 provisions of Section 1381 through 1388 of the
21 Internal Revenue Code, but without regard to the
22 prohibition against offsetting losses from patronage
23 activities against income from nonpatronage
24 activities; except that a cooperative corporation or
25 association may make an election to follow its federal
26 income tax treatment of patronage losses and

HB4951 Enrolled- 111 -LRB103 38094 HLH 68226 b
1 nonpatronage losses. In the event such election is
2 made, such losses shall be computed and carried over
3 in a manner consistent with subsection (a) of Section
4 207 of this Act and apportioned by the apportionment
5 factor reported by the cooperative on its Illinois
6 income tax return filed for the taxable year in which
7 the losses are incurred. The election shall be
8 effective for all taxable years with original returns
9 due on or after the date of the election. In addition,
10 the cooperative may file an amended return or returns,
11 as allowed under this Act, to provide that the
12 election shall be effective for losses incurred or
13 carried forward for taxable years occurring prior to
14 the date of the election. Once made, the election may
15 only be revoked upon approval of the Director. The
16 Department shall adopt rules setting forth
17 requirements for documenting the elections and any
18 resulting Illinois net loss and the standards to be
19 used by the Director in evaluating requests to revoke
20 elections. Public Act 96-932 is declaratory of
21 existing law;
22 (G) Subchapter S corporations. In the case of: (i)
23 a Subchapter S corporation for which there is in
24 effect an election for the taxable year under Section
25 1362 of the Internal Revenue Code, the taxable income
26 of such corporation determined in accordance with

HB4951 Enrolled- 112 -LRB103 38094 HLH 68226 b
1 Section 1363(b) of the Internal Revenue Code, except
2 that taxable income shall take into account those
3 items which are required by Section 1363(b)(1) of the
4 Internal Revenue Code to be separately stated; and
5 (ii) a Subchapter S corporation for which there is in
6 effect a federal election to opt out of the provisions
7 of the Subchapter S Revision Act of 1982 and have
8 applied instead the prior federal Subchapter S rules
9 as in effect on July 1, 1982, the taxable income of
10 such corporation determined in accordance with the
11 federal Subchapter S rules as in effect on July 1,
12 1982; and
13 (H) Partnerships. In the case of a partnership,
14 taxable income determined in accordance with Section
15 703 of the Internal Revenue Code, except that taxable
16 income shall take into account those items which are
17 required by Section 703(a)(1) to be separately stated
18 but which would be taken into account by an individual
19 in calculating his taxable income.
20 (3) Recapture of business expenses on disposition of
21 asset or business. Notwithstanding any other law to the
22 contrary, if in prior years income from an asset or
23 business has been classified as business income and in a
24 later year is demonstrated to be non-business income, then
25 all expenses, without limitation, deducted in such later
26 year and in the 2 immediately preceding taxable years

HB4951 Enrolled- 113 -LRB103 38094 HLH 68226 b
1 related to that asset or business that generated the
2 non-business income shall be added back and recaptured as
3 business income in the year of the disposition of the
4 asset or business. Such amount shall be apportioned to
5 Illinois using the greater of the apportionment fraction
6 computed for the business under Section 304 of this Act
7 for the taxable year or the average of the apportionment
8 fractions computed for the business under Section 304 of
9 this Act for the taxable year and for the 2 immediately
10 preceding taxable years.
11 (f) Valuation limitation amount.
12 (1) In general. The valuation limitation amount
13 referred to in subsections (a)(2)(G), (c)(2)(I) and
14 (d)(2)(E) is an amount equal to:
15 (A) The sum of the pre-August 1, 1969 appreciation
16 amounts (to the extent consisting of gain reportable
17 under the provisions of Section 1245 or 1250 of the
18 Internal Revenue Code) for all property in respect of
19 which such gain was reported for the taxable year;
20 plus
21 (B) The lesser of (i) the sum of the pre-August 1,
22 1969 appreciation amounts (to the extent consisting of
23 capital gain) for all property in respect of which
24 such gain was reported for federal income tax purposes
25 for the taxable year, or (ii) the net capital gain for

HB4951 Enrolled- 114 -LRB103 38094 HLH 68226 b
1 the taxable year, reduced in either case by any amount
2 of such gain included in the amount determined under
3 subsection (a)(2)(F) or (c)(2)(H).
4 (2) Pre-August 1, 1969 appreciation amount.
5 (A) If the fair market value of property referred
6 to in paragraph (1) was readily ascertainable on
7 August 1, 1969, the pre-August 1, 1969 appreciation
8 amount for such property is the lesser of (i) the
9 excess of such fair market value over the taxpayer's
10 basis (for determining gain) for such property on that
11 date (determined under the Internal Revenue Code as in
12 effect on that date), or (ii) the total gain realized
13 and reportable for federal income tax purposes in
14 respect of the sale, exchange or other disposition of
15 such property.
16 (B) If the fair market value of property referred
17 to in paragraph (1) was not readily ascertainable on
18 August 1, 1969, the pre-August 1, 1969 appreciation
19 amount for such property is that amount which bears
20 the same ratio to the total gain reported in respect of
21 the property for federal income tax purposes for the
22 taxable year, as the number of full calendar months in
23 that part of the taxpayer's holding period for the
24 property ending July 31, 1969 bears to the number of
25 full calendar months in the taxpayer's entire holding
26 period for the property.

HB4951 Enrolled- 115 -LRB103 38094 HLH 68226 b
1 (C) The Department shall prescribe such
2 regulations as may be necessary to carry out the
3 purposes of this paragraph.
4 (g) Double deductions. Unless specifically provided
5otherwise, nothing in this Section shall permit the same item
6to be deducted more than once.
7 (h) Legislative intention. Except as expressly provided by
8this Section there shall be no modifications or limitations on
9the amounts of income, gain, loss or deduction taken into
10account in determining gross income, adjusted gross income or
11taxable income for federal income tax purposes for the taxable
12year, or in the amount of such items entering into the
13computation of base income and net income under this Act for
14such taxable year, whether in respect of property values as of
15August 1, 1969 or otherwise.
16(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
17102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
1812-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised
199-26-23.)
20
ARTICLE 15.
21 Section 15-5. The Property Tax Code is amended by changing
22Section 18-173 as follows:

HB4951 Enrolled- 116 -LRB103 38094 HLH 68226 b
1 (35 ILCS 200/18-173)
2 Sec. 18-173. Housing opportunity area abatement program.
3 (a) For the purpose of promoting access to housing near
4work and in order to promote economic diversity throughout
5Illinois and to alleviate the concentration of low-income
6households in areas of high poverty, a housing opportunity
7area tax abatement program is created.
8 (b) As used in this Section:
9 "Housing authority" means either a housing authority
10created under the Housing Authorities Act or other government
11agency that is authorized by the United States government
12under the United States Housing Act of 1937 to administer a
13housing choice voucher program, or the authorized agent of
14such a housing authority that is authorized to act upon that
15authority's behalf.
16 "Housing choice voucher" means a tenant voucher issued by
17a housing authority under Section 8 of the United States
18Housing Act of 1937 and a tenant voucher converted to a
19project-based voucher by a housing authority.
20 "Housing opportunity area" means a census tract where less
21than 10% of the residents live below the poverty level, as
22defined by the United States government and determined by the
23most recent United States census, that is located within a
24qualified township, except for census tracts located within
25any township that is located wholly within a municipality with

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11,000,000 or more inhabitants. A census tract that is located
2within a township that is located wholly within a municipality
3with 1,000,000 or more inhabitants is considered a housing
4opportunity area if less than 12% of the residents of the
5census tract live below the poverty level.
6 "Housing opportunity unit" means a dwelling unit located
7in residential property that is located in a housing
8opportunity area, that is owned by the applicant, and that is
9rented to and occupied by a tenant who is participating in a
10housing choice voucher program administered by a housing
11authority as of January 1st of the tax year for which the
12application is made.
13 "Qualified units" means the number of housing opportunity
14units located in the property with the limitation that no more
15than 2 units or 20% of the total units contained within the
16property, whichever is greater, may be considered qualified
17units. Further, no unit may be considered qualified unless the
18property in which it is contained is in substantial compliance
19with local building codes, and, moreover, no unit may be
20considered qualified unless it meets the United States
21Department of Housing and Urban Development's housing quality
22standards as of the most recent housing authority inspection.
23 "Qualified township" means a township located within a
24county with 200,000 or more inhabitants whose tax capacity
25exceeds 80% of the average tax capacity of the county in which
26it is located, except for townships located within a county

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1with 3,000,000 or more inhabitants, where a qualified township
2means a township whose tax capacity exceeds 115% of the
3average tax capacity of the county except for townships
4located wholly within a municipality with 1,000,000 or more
5inhabitants. All townships located wholly within a
6municipality with 1,000,000 or more inhabitants are considered
7qualified townships.
8 "Tax capacity" means the equalized assessed value of all
9taxable real estate located within a township or county
10divided by the total population of that township or county.
11 (c) The owner of property located within a housing
12opportunity area who has a housing choice voucher contract
13with a housing authority may apply for a housing opportunity
14area tax abatement by annually submitting an application to
15the housing authority that administers the housing choice
16voucher contract. The application must include the number of
17housing opportunity units as well as the total number of
18dwelling units contained within the property. The owner must,
19under oath, self-certify as to the total number of dwelling
20units in the property and must self-certify that the property
21is in substantial compliance with local building codes. The
22housing authority shall annually determine the number of
23qualified units located within each property for which an
24application is made.
25 The housing authority shall establish rules and procedures
26governing the application processes and may charge an

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1application fee. The county clerk may audit the applications
2to determine that the properties subject to the tax abatement
3meet the requirements of this Section. The determination of
4eligibility of a property for the housing opportunity area
5abatement shall be made annually; however, no property may
6receive an abatement for more than 10 tax years.
7 (d) The housing authority shall determine housing
8opportunity areas within its service area and annually deliver
9to the county clerk, in a manner determined by the county
10clerk, a list of all properties containing qualified units
11within that service area by December 31st of the tax year for
12which the property is eligible for abatement; the list shall
13include the number of qualified units and the total number of
14dwelling units for each property.
15 The county clerk shall deliver annually to a housing
16authority, upon that housing authority's request, the most
17recent available equalized assessed value for the county as a
18whole and for those taxing districts and townships so
19specified by the requesting housing authority.
20 (e) The county clerk shall abate the tax attributed to a
21portion of the property determined to be eligible for a
22housing opportunity area abatement. The portion eligible for
23abatement shall be determined by reducing the equalized
24assessment value by a percentage calculated using the
25following formula: 19% of the equalized assessed value of the
26property multiplied by a fraction where the numerator is the

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1number of qualified units and denominator is the total number
2of dwelling units located within the property.
3 (f) Any municipality, except for municipalities with
41,000,000 or more inhabitants, may annually petition the
5county clerk to be excluded from a housing opportunity area if
6it is able to demonstrate that more than 2.5% of the total
7residential units located within that municipality are
8occupied by tenants under the housing choice voucher program.
9Properties located within an excluded municipality shall not
10be eligible for the housing opportunity area abatement for the
11tax year in which the petition is made.
12 (g) Applicability. This Section applies to tax years 2004
13through 2034 2024, unless extended by law.
14(Source: P.A. 98-957, eff. 8-15-14.)
15
ARTICLE 20.
16 Section 20-5. The Property Tax Code is amended by changing
17Section 21-355 as follows:
18 (35 ILCS 200/21-355)
19 Sec. 21-355. Amount of redemption. Any person desiring to
20redeem shall deposit an amount specified in this Section with
21the county clerk of the county in which the property is
22situated, in legal money of the United States, or by cashier's
23check, certified check, post office money order or money order

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1issued by a financial institution insured by an agency or
2instrumentality of the United States, payable to the county
3clerk of the proper county. The deposit shall be deemed timely
4only if actually received in person at the county clerk's
5office prior to the close of business as defined in Section
63-2007 of the Counties Code on or before the expiration of the
7period of redemption or by United States mail with a post
8office cancellation mark dated not less than one day prior to
9the expiration of the period of redemption. The deposit shall
10be in an amount equal to the total of the following:
11 (a) the certificate amount, which shall include all
12 tax principal, special assessments, interest and penalties
13 paid by the tax purchaser together with costs and fees of
14 sale and fees paid under Sections 21-295 and 21-315
15 through 21-335, except for the nonrefundable $80 fee paid,
16 pursuant to Section 21-295, for each item purchased at the
17 tax sale;
18 (b) the accrued penalty, computed through the date of
19 redemption as a percentage of the certificate amount, as
20 follows:
21 (1) if the redemption occurs on or before the
22 expiration of 6 months from the date of sale, the
23 certificate amount times the penalty bid at sale;
24 (2) if the redemption occurs after 6 months from
25 the date of sale, and on or before the expiration of 12
26 months from the date of sale, the certificate amount

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1 times 2 times the penalty bid at sale;
2 (3) if the redemption occurs after 12 months from
3 the date of sale and on or before the expiration of 18
4 months from the date of sale, the certificate amount
5 times 3 times the penalty bid at sale;
6 (4) if the redemption occurs after 18 months from
7 the date of sale and on or before the expiration of 24
8 months from the date of sale, the certificate amount
9 times 4 times the penalty bid at sale;
10 (5) if the redemption occurs after 24 months from
11 the date of sale and on or before the expiration of 30
12 months from the date of sale, the certificate amount
13 times 5 times the penalty bid at sale;
14 (6) if the redemption occurs after 30 months from
15 the date of sale and on or before the expiration of 36
16 months from the date of sale, the certificate amount
17 times 6 times the penalty bid at sale.
18 In the event that the property to be redeemed has been
19 purchased under Section 21-405 before January 1, 2024, the
20 penalty bid shall be 12% per penalty period as set forth in
21 subparagraphs (1) through (6) of this subsection (b). The
22 changes to this subdivision (b)(6) made by this amendatory
23 Act of the 91st General Assembly are not a new enactment,
24 but declaratory of existing law.
25 For counties with fewer than 3,000,000 inhabitants, if
26 the property to be redeemed is property with respect to

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1 which a tax lien or certificate is acquired after January
2 1, 2024 by the county as trustee pursuant to Section
3 21-90, the penalty bid at sale shall accrue according to
4 the penalty periods established in subparagraphs (1)
5 through (6) of this subsection (b).
6 For counties with more than 3,000,000 inhabitants, if
7 If the property to be redeemed is property with respect to
8 which a tax lien or certificate is acquired on or after
9 January 1, 2024 by the county as trustee pursuant to
10 Section 21-90, the penalty bid is 0.75% and shall accrue
11 monthly instead of according to the penalty periods
12 established in subparagraphs (1) through (6) of this
13 subsection (b).
14 (c) The total of all taxes, special assessments,
15 accrued interest on those taxes and special assessments
16 and costs charged in connection with the payment of those
17 taxes or special assessments, except for the nonrefundable
18 $80 fee paid, pursuant to Section 21-295, for each item
19 purchased at the tax sale, which have been paid by the tax
20 certificate holder on or after the date those taxes or
21 special assessments became delinquent together with 12%
22 penalty on each amount so paid for each year or portion
23 thereof intervening between the date of that payment and
24 the date of redemption. In counties with less than
25 3,000,000 inhabitants, however, a tax certificate holder
26 may not pay all or part of an installment of a subsequent

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1 tax or special assessment for any year, nor shall any
2 tender of such a payment be accepted, until after the
3 second or final installment of the subsequent tax or
4 special assessment has become delinquent or until after
5 the holder of the certificate of purchase has filed a
6 petition for a tax deed under Section 22.30. The person
7 redeeming shall also pay the amount of interest charged on
8 the subsequent tax or special assessment and paid as a
9 penalty by the tax certificate holder. This amendatory Act
10 of 1995 applies to tax years beginning with the 1995
11 taxes, payable in 1996, and thereafter.
12 (d) Any amount paid to redeem a forfeiture occurring
13 before January 1, 2024 but after the tax sale together
14 with 12% penalty thereon for each year or portion thereof
15 intervening between the date of the forfeiture redemption
16 and the date of redemption from the sale.
17 (e) Any amount paid by the certificate holder for
18 redemption of a subsequently occurring tax sale, including
19 tax liens or certificates held by the county as trustee,
20 pursuant to Section 21-90.
21 (f) All fees paid to the county clerk under Section
22 22-5.
23 (g) All fees paid to the registrar of titles incident
24 to registering the tax certificate in compliance with the
25 Registered Titles (Torrens) Act.
26 (h) All fees paid to the circuit clerk and the

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1 sheriff, a licensed or registered private detective, or
2 the coroner in connection with the filing of the petition
3 for tax deed and service of notices under Sections 22-15
4 through 22-30 and 22-40 in addition to (1) a fee of $35 if
5 a petition for tax deed has been filed, which fee shall be
6 posted to the tax judgement, sale, redemption, and
7 forfeiture record, to be paid to the purchaser or his or
8 her assignee; (2) a fee of $4 if a notice under Section
9 22-5 has been filed, which fee shall be posted to the tax
10 judgment, sale, redemption, and forfeiture record, to be
11 paid to the purchaser or his or her assignee; (3) all costs
12 paid to record a lis pendens notice in connection with
13 filing a petition under this Code; and (4) if a petition
14 for tax deed has been filed, all fees up to $150 per
15 redemption paid to a registered or licensed title
16 insurance company or title insurance agent for a title
17 search to identify all owners, parties interested, and
18 occupants of the property, to be paid to the purchaser or
19 his or her assignee. The fees in (1) and (2) of this
20 paragraph (h) shall be exempt from the posting
21 requirements of Section 21-360. The costs incurred in
22 causing notices to be served by a licensed or registered
23 private detective under Section 22-15, may not exceed the
24 amount that the sheriff would be authorized by law to
25 charge if those notices had been served by the sheriff.
26 (i) All fees paid for publication of notice of the tax

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1 sale in accordance with Section 22-20.
2 (j) All sums paid to any county, city, village or
3 incorporated town for reimbursement under Section 22-35.
4 (k) All costs and expenses of receivership under
5 Section 21-410, to the extent that these costs and
6 expenses exceed any income from the property in question,
7 if the costs and expenditures have been approved by the
8 court appointing the receiver and a certified copy of the
9 order or approval is filed and posted by the certificate
10 holder with the county clerk. Only actual costs expended
11 may be posted on the tax judgment, sale, redemption and
12 forfeiture record.
13(Source: P.A. 103-555, eff. 1-1-24.)
14
ARTICLE 25.
15 Section 25-5. The Property Tax Code is amended by changing
16Section 20-15 as follows:
17 (35 ILCS 200/20-15)
18 Sec. 20-15. Information on bill or separate statement.
19There shall be printed on each bill, or on a separate slip
20which shall be mailed with the bill:
21 (a) a statement itemizing the rate at which taxes have
22 been extended for each of the taxing districts in the
23 county in whose district the property is located, and in

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1 those counties utilizing electronic data processing
2 equipment the dollar amount of tax due from the person
3 assessed allocable to each of those taxing districts,
4 including a separate statement of the dollar amount of tax
5 due which is allocable to a tax levied under the Illinois
6 Local Library Act or to any other tax levied by a
7 municipality or township for public library purposes,
8 (b) a separate statement for each of the taxing
9 districts of the dollar amount of tax due which is
10 allocable to a tax levied under the Illinois Pension Code
11 or to any other tax levied by a municipality or township
12 for public pension or retirement purposes,
13 (b-5) a list of each tax increment financing (TIF)
14 district in which the property is located and the dollar
15 amount of tax due that is allocable to the TIF district,
16 (c) the total tax rate,
17 (d) the total amount of tax due, and
18 (e) the amount by which the total tax and the tax
19 allocable to each taxing district differs from the
20 taxpayer's last prior tax bill.
21 The county treasurer shall ensure that only those taxing
22districts in which a parcel of property is located shall be
23listed on the bill for that property.
24 In all counties the statement shall also provide:
25 (1) the property index number or other suitable
26 description,

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1 (2) the assessment of the property,
2 (3) the statutory amount of each homestead exemption
3 applied to the property,
4 (4) the assessed value of the property after
5 application of all homestead exemptions,
6 (5) the equalization factors imposed by the county and
7 by the Department, and
8 (6) the equalized assessment resulting from the
9 application of the equalization factors to the basic
10 assessment.
11 In all counties which do not classify property for
12purposes of taxation, for property on which a single family
13residence is situated the statement shall also include a
14statement to reflect the fair cash value determined for the
15property. In all counties which classify property for purposes
16of taxation in accordance with Section 4 of Article IX of the
17Illinois Constitution, for parcels of residential property in
18the lowest assessment classification the statement shall also
19include a statement to reflect the fair cash value determined
20for the property.
21 In all counties, the statement must include information
22that certain taxpayers may be eligible for tax exemptions,
23abatements, and other assistance programs and that, for more
24information, taxpayers should consult with the office of their
25township or county assessor and with the Illinois Department
26of Revenue. For bills mailed on or after January 1, 2026, the

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1statement must include, in bold face type, a list of
2exemptions available to taxpayers and contact information for
3the chief county assessment officer.
4 In counties which use the estimated or accelerated billing
5methods, these statements shall only be provided with the
6final installment of taxes due. The provisions of this Section
7create a mandatory statutory duty. They are not merely
8directory or discretionary. The failure or neglect of the
9collector to mail the bill, or the failure of the taxpayer to
10receive the bill, shall not affect the validity of any tax, or
11the liability for the payment of any tax.
12(Source: P.A. 100-621, eff. 7-20-18; 101-134, eff. 7-26-19.)
13
ARTICLE 30.
14 Section 30-5. The Property Tax Code is amended by changing
15Section 30-25 as follows:
16 (35 ILCS 200/30-25)
17 Sec. 30-25. Distributions from account.
18 (a) At the direction of the corporate authorities of a
19taxing district, the treasurer of the taxing district shall
20disburse the amounts held in the tax reimbursement account.
21Unless the taxing district has divided the moneys as provided
22in subsection (b), disbursements shall be made to all of the
23owners of taxable homestead property within the taxing

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1district. Each owner of taxable homestead property shall
2receive a proportionate share of the total disbursement based
3on the amount of ad valorem taxes on taxable homestead
4property paid by the owner to the taxing district under the
5most recent tax bill.
6 (b) The corporate authorities of a taxing district may
7direct the treasurer to divide the moneys deposited into the
8account into 2 separate pools to be designated the homestead
9property pool and the commercial or industrial property pool.
10The amount to be deposited into each pool shall be determined
11by the corporate authorities of the taxing district, except
12that at least 50% of the moneys in the account shall be
13deposited into the homestead property pool. The treasurer
14shall disburse the amounts held in each pool in the tax
15reimbursement account at the direction of the corporate
16authorities. Disbursements from the homestead property pool
17shall be made to all of the owners of taxable homestead
18property within the taxing district. Each owner of taxable
19homestead property shall receive a proportionate share of the
20total disbursement from the pool based on the amount of ad
21valorem taxes on taxable homestead property paid by the owner
22to the taxing district under the most recent tax bill.
23Disbursements from the commercial or industrial property pool
24shall be made to all of the owners of taxable commercial or
25industrial property, except (i) those owners whose property is
26located within a tax increment financing district, (ii) those

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1owners who received a tax incentive as a result of a tax
2incentivized development established by an intergovernmental
3agreement to which the taxing district is a party, or (iii)
4those owners whose property is classified as an apartment
5building. Each eligible owner of taxable commercial or
6industrial property shall receive a proportionate share of the
7total disbursement from the pool based on the amount of ad
8valorem taxes on taxable commercial or industrial property
9paid by the owner to the taxing district under the most recent
10tax bill.
11 (c) In determining the proportionate share of each owner
12of homestead property, the numerator shall be the amount of
13taxes on homestead property paid by that owner to the taxing
14district under the most recent tax bill, and the denominator
15shall be the aggregate total of all taxes on homestead
16property paid by all owners to the taxing district under the
17most recent tax bills.
18 (d) In determining the proportionate share of each owner
19of commercial or industrial property, the numerator shall be
20the amount of taxes on commercial or industrial property paid
21by that owner to the taxing district under the most recent tax
22bill, and the denominator shall be the aggregate total of all
23taxes on commercial or industrial property paid by all owners
24to the taxing district under the most recent tax bills less
25taxes paid on commercial or industrial property located in a
26tax increment financing district, taxes paid on commercial or

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1industrial property for which the owner received a tax
2incentive as a result of a tax incentivized development
3established by an intergovernmental agreement to which the
4taxing district is a party, and taxes paid on an apartment
5building.
6 (e) As used in this Section:
7 "Qualified redevelopment costs" means costs advanced by a
8taxing district to a commercial or industrial property owner
9to promote economic development when, but for the advancement
10of the funds, the development would not be financially
11feasible.
12 "Tax incentivized development" means an economic
13development project established by intergovernmental agreement
14whereby a taxing district advances qualified redevelopment
15costs to a commercial or industrial property owner.
16(Source: P.A. 90-471, eff. 8-17-97.)
17
ARTICLE 35.
18 Section 35-5. The Property Tax Code is amended by changing
19Sections 18-15 and 18-190 and by adding Section 18-17 as
20follows:
21 (35 ILCS 200/18-15)
22 Sec. 18-15. Filing of levies of taxing districts.
23 (a) Notwithstanding any other law to the contrary, all

HB4951 Enrolled- 133 -LRB103 38094 HLH 68226 b
1taxing districts, other than a school district subject to the
2authority of a Financial Oversight Panel pursuant to Article
31H of the School Code, and except as provided in Section 18-17,
4shall annually certify to the county clerk, on or before the
5last Tuesday in December, the several amounts that they have
6levied.
7 (a-5) Certification to the county clerk under subsection
8(a), including any supplemental or supportive documentation,
9may be submitted electronically.
10 (b) A school district subject to the authority of a
11Financial Oversight Panel pursuant to Article 1H of the School
12Code shall file a certificate of tax levy, necessary to effect
13the implementation of the approved financial plan and the
14approval of the Panel, as otherwise provided by this Section,
15except that the certificate must be certified to the county
16clerk on or before the first Tuesday in November.
17 (c) If a school district as specified in subsection (b) of
18this Section fails to certify and return the certificate of
19tax levy, necessary to effect the implementation of the
20approved financial plan and the approval of the Financial
21Oversight Panel, to the county clerk on or before the first
22Tuesday in November, then the Financial Oversight Panel for
23the school district shall proceed to adopt, certify, and
24return a certificate of tax levy for the school district to the
25county clerk on or before the last Tuesday in December.
26(Source: P.A. 102-625, eff. 1-1-22.)

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1 (35 ILCS 200/18-17 new)
2 Sec. 18-17. Supplemental levy for LaMoille Community Unit
3School District #303. Notwithstanding any other provision of
4law, LaMoille Community Unit School District #303 may, by
5ordinance adopted on or before June 30, 2024, amend or
6supplement its levy for the 2023 tax year for taxes scheduled
7to be collected in calendar year 2024. The District shall
8certify the amount of the amended or supplemental levy to the
9county clerk as soon as possible after the amended or
10supplemental levy is adopted, and the county clerk shall
11include those amounts in the extension of taxes for the 2023
12tax year. In no event shall the amended or supplemental levy
13adopted under this Section cause the District's property tax
14rate for the 2023 tax year to exceed the District's limiting
15rate under the Property Tax Extension Limitation Law or any
16other limitation on the extension of property taxes applicable
17to the District. This Section is repealed on January 1, 2025.
18 (35 ILCS 200/18-190)
19 Sec. 18-190. Direct referendum; new rate or increased
20limiting rate.
21 (a) If a new rate is authorized by statute to be imposed
22without referendum or is subject to a backdoor referendum, as
23defined in Section 28-2 of the Election Code, the governing
24body of the affected taxing district before levying the new

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1rate shall submit the new rate to direct referendum under the
2provisions of this Section and of Article 28 of the Election
3Code. Notwithstanding any other provision of law, the levies
4authorized by Sections 21-110 and 21-110.1 of the Illinois
5Pension Code shall not be considered new rates; however,
6nothing in this amendatory Act of the 98th General Assembly
7authorizes a taxing district to increase its limiting rate or
8its aggregate extension without first obtaining referendum
9approval as provided in this Section. Notwithstanding any
10other provision of law, the levy authorized by Section 18-17
11is considered part of the annual corporate extension for the
12taxing district and is not considered a new rate.
13Notwithstanding the provisions, requirements, or limitations
14of any other law, any tax levied for the 2005 levy year and all
15subsequent levy years by any taxing district subject to this
16Law may be extended at a rate exceeding the rate established
17for that tax by referendum or statute, provided that the rate
18does not exceed the statutory ceiling above which the tax is
19not authorized to be further increased either by referendum or
20in any other manner. Notwithstanding the provisions,
21requirements, or limitations of any other law, all taxing
22districts subject to this Law shall follow the provisions of
23this Section whenever seeking referenda approval after March
2421, 2006 to (i) levy a new tax rate authorized by statute or
25(ii) increase the limiting rate applicable to the taxing
26district. All taxing districts subject to this Law are

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1authorized to seek referendum approval of each proposition
2described and set forth in this Section.
3 The proposition seeking to obtain referendum approval to
4levy a new tax rate as authorized in clause (i) shall be in
5substantially the following form:
6 Shall ... (insert legal name, number, if any, and
7 county or counties of taxing district and geographic or
8 other common name by which a school or community college
9 district is known and referred to), Illinois, be
10 authorized to levy a new tax for ... purposes and have an
11 additional tax of ...% of the equalized assessed value of
12 the taxable property therein extended for such purposes?
13The votes must be recorded as "Yes" or "No".
14 The proposition seeking to obtain referendum approval to
15increase the limiting rate as authorized in clause (ii) shall
16be in substantially the following form:
17 Shall the limiting rate under the Property Tax
18 Extension Limitation Law for ... (insert legal name,
19 number, if any, and county or counties of taxing district
20 and geographic or other common name by which a school or
21 community college district is known and referred to),
22 Illinois, be increased by an additional amount equal to
23 ...% above the limiting rate for the purpose of...(insert
24 purpose) for levy year ... (insert the most recent levy
25 year for which the limiting rate of the taxing district is
26 known at the time the submission of the proposition is

HB4951 Enrolled- 137 -LRB103 38094 HLH 68226 b
1 initiated by the taxing district) and be equal to ...% of
2 the equalized assessed value of the taxable property
3 therein for levy year(s) (insert each levy year for which
4 the increase will be applicable, which years must be
5 consecutive and may not exceed 4)?
6 The votes must be recorded as "Yes" or "No".
7 The ballot for any proposition submitted pursuant to this
8Section shall have printed thereon, but not as a part of the
9proposition submitted, only the following supplemental
10information (which shall be supplied to the election authority
11by the taxing district) in substantially the following form:
12 (1) The approximate amount of taxes extendable at the
13 most recently extended limiting rate is $..., and the
14 approximate amount of taxes extendable if the proposition
15 is approved is $....
16 (2) For the ... (insert the first levy year for which
17 the new rate or increased limiting rate will be
18 applicable) levy year the approximate amount of the
19 additional tax extendable against property containing a
20 single family residence and having a fair market value at
21 the time of the referendum of $100,000 is estimated to be
22 $....
23 (3) Based upon an average annual percentage increase
24 (or decrease) in the market value of such property of %...
25 (insert percentage equal to the average annual percentage
26 increase or decrease for the prior 3 levy years, at the

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1 time the submission of the proposition is initiated by the
2 taxing district, in the amount of (A) the equalized
3 assessed value of the taxable property in the taxing
4 district less (B) the new property included in the
5 equalized assessed value), the approximate amount of the
6 additional tax extendable against such property for the
7 ... levy year is estimated to be $... and for the ... levy
8 year is estimated to be $ ....
9 (4) If the proposition is approved, the aggregate
10 extension for ... (insert each levy year for which the
11 increase will apply) will be determined by the limiting
12 rate set forth in the proposition, rather than the
13 otherwise applicable limiting rate calculated under the
14 provisions of the Property Tax Extension Limitation Law
15 (commonly known as the Property Tax Cap Law).
16The approximate amount of taxes extendable shown in paragraph
17(1) shall be computed upon the last known equalized assessed
18value of taxable property in the taxing district (at the time
19the submission of the proposition is initiated by the taxing
20district). Paragraph (3) shall be included only if the
21increased limiting rate will be applicable for more than one
22levy year and shall list each levy year for which the increased
23limiting rate will be applicable. The additional tax shown for
24each levy year shall be the approximate dollar amount of the
25increase over the amount of the most recently completed
26extension at the time the submission of the proposition is

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1initiated by the taxing district. The approximate amount of
2the additional taxes extendable shown in paragraphs (2) and
3(3) shall be calculated by multiplying $100,000 (the fair
4market value of the property without regard to any property
5tax exemptions) by (i) the percentage level of assessment
6prescribed for that property by statute, or by ordinance of
7the county board in counties that classify property for
8purposes of taxation in accordance with Section 4 of Article
9IX of the Illinois Constitution; (ii) the most recent final
10equalization factor certified to the county clerk by the
11Department of Revenue at the time the taxing district
12initiates the submission of the proposition to the electors;
13and (iii) either the new rate or the amount by which the
14limiting rate is to be increased. This amendatory Act of the
1597th General Assembly is intended to clarify the existing
16requirements of this Section, and shall not be construed to
17validate any prior non-compliant referendum language.
18Paragraph (4) shall be included if the proposition concerns a
19limiting rate increase but shall not be included if the
20proposition concerns a new rate. Any notice required to be
21published in connection with the submission of the proposition
22shall also contain this supplemental information and shall not
23contain any other supplemental information regarding the
24proposition. Any error, miscalculation, or inaccuracy in
25computing any amount set forth on the ballot and in the notice
26that is not deliberate shall not invalidate or affect the

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1validity of any proposition approved. Notice of the referendum
2shall be published and posted as otherwise required by law,
3and the submission of the proposition shall be initiated as
4provided by law.
5 If a majority of all ballots cast on the proposition are in
6favor of the proposition, the following provisions shall be
7applicable to the extension of taxes for the taxing district:
8 (A) a new tax rate shall be first effective for the
9 levy year in which the new rate is approved;
10 (B) if the proposition provides for a new tax rate,
11 the taxing district is authorized to levy a tax after the
12 canvass of the results of the referendum by the election
13 authority for the purposes for which the tax is
14 authorized;
15 (C) a limiting rate increase shall be first effective
16 for the levy year in which the limiting rate increase is
17 approved, provided that the taxing district may elect to
18 have a limiting rate increase be effective for the levy
19 year prior to the levy year in which the limiting rate
20 increase is approved unless the extension of taxes for the
21 prior levy year occurs 30 days or less after the canvass of
22 the results of the referendum by the election authority in
23 any county in which the taxing district is located;
24 (D) in order for the limiting rate increase to be
25 first effective for the levy year prior to the levy year of
26 the referendum, the taxing district must certify its

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1 election to have the limiting rate increase be effective
2 for the prior levy year to the clerk of each county in
3 which the taxing district is located not more than 2 days
4 after the date the results of the referendum are canvassed
5 by the election authority; and
6 (E) if the proposition provides for a limiting rate
7 increase, the increase may be effective regardless of
8 whether the proposition is approved before or after the
9 taxing district adopts or files its levy for any levy
10 year.
11 Rates required to extend taxes on levies subject to a
12backdoor referendum in each year there is a levy are not new
13rates or rate increases under this Section if a levy has been
14made for the fund in one or more of the preceding 3 levy years.
15Changes made by this amendatory Act of 1997 to this Section in
16reference to rates required to extend taxes on levies subject
17to a backdoor referendum in each year there is a levy are
18declarative of existing law and not a new enactment.
19 (b) Whenever other applicable law authorizes a taxing
20district subject to the limitation with respect to its
21aggregate extension provided for in this Law to issue bonds or
22other obligations either without referendum or subject to
23backdoor referendum, the taxing district may elect for each
24separate bond issuance to submit the question of the issuance
25of the bonds or obligations directly to the voters of the
26taxing district, and if the referendum passes the taxing

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1district is not required to comply with any backdoor
2referendum procedures or requirements set forth in the other
3applicable law. The direct referendum shall be initiated by
4ordinance or resolution of the governing body of the taxing
5district, and the question shall be certified to the proper
6election authorities in accordance with the provisions of the
7Election Code.
8(Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.)
9 Section 35-10. The School Code is amended by changing
10Section 17-3.2 as follows:
11 (105 ILCS 5/17-3.2) (from Ch. 122, par. 17-3.2)
12 Sec. 17-3.2. Additional or supplemental budget.
13 (a) Whenever the voters of a school district have voted in
14favor of an increase in the annual tax rate for educational or
15operations and maintenance purposes or both at an election
16held after the adoption of the annual school budget for any
17fiscal year, the board may adopt or pass during that fiscal
18year an additional or supplemental budget under the sole
19authority of this Section by a vote of a majority of the full
20membership of the board, any other provision of this Article
21to the contrary notwithstanding, in and by which such
22additional or supplemental budget the board shall appropriate
23such additional sums of money as it may find necessary to
24defray expenses and liabilities of that district to be

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1incurred for educational or operations and maintenance
2purposes or both of the district during that fiscal year, but
3not in excess of the additional funds estimated to be
4available by virtue of such voted increase in the annual tax
5rate for educational or operations and maintenance purposes or
6both. Such additional or supplemental budget shall be regarded
7as an amendment of the annual school budget for the fiscal year
8in which it is adopted, and the board may levy the additional
9tax for educational or operations and maintenance purposes or
10both to equal the amount of the additional sums of money
11appropriated in that additional or supplemental budget,
12immediately.
13 (b) Notwithstanding any other provision of law, LaMoille
14Community Unit School District #303 may adopt an additional or
15supplemental budget in connection with an amended or
16supplemental levy adopted under Section 18-17 of the Property
17Tax Code without receiving the approval of the voters as
18provided in subsection (a). This subsection (b) is inoperative
19on and after January 1, 2025.
20(Source: P.A. 86-1334.)
21
ARTICLE 40.
22 Section 40-1. Short title. This Act may be cited as the
23Local Journalism Sustainability Act. References in this
24Article to "this Act" mean this Article.

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1 Section 40-5. Definitions.
2 "Award cycle" means the 4 reporting periods for which the
3employer is awarded a credit under Section 40-10.
4 "Comparable rate" has the meaning given to that term by
5the Federal Communications Commission in its campaign
6advertising rate rules.
7 "Department" means the Department of Commerce and Economic
8Opportunity.
9 "Independently owned" means, as applied to a local news
10organization, that:
11 (1) the local news organization is not a publicly
12 traded entity and no more than 5% of the beneficial
13 ownership of the local news organization is owned,
14 directly or indirectly, by a publicly traded entity; and
15 (2) the local news organization is not a subsidiary.
16 "Local news organization" means an entity that:
17 (1) engages professionals to create, edit, produce,
18 and distribute original content concerning matters of
19 public interest through reporting activities, including
20 conducting interviews, observing current events, or
21 analyzing documents or other information;
22 (2) has at least one employee who meets all of the
23 following criteria:
24 (A) the employee is employed by the entity on a
25 full-time basis for at least 30 hours a week;

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1 (B) the employee's job duties for the entity
2 consist primarily of providing coverage of Illinois or
3 local Illinois community news as described in
4 paragraph (C);
5 (C) the employee gathers, prepares, collects,
6 photographs, writes, edits, reports, or publishes
7 original local or State community news for
8 dissemination to the local or State community; and
9 (D) the employee lives within 50 miles of the
10 coverage area;
11 (3) in the case of a print publication, has published
12 at least one print publication per month over the previous
13 12 months and either (i) holds a valid United States
14 Postal Service periodical permit or (ii) has at least 25%
15 of its content dedicated to local news;
16 (4) in the case of a digital-only entity, has
17 published one piece about the community per week over the
18 previous 12 months and has at least 33% of its digital
19 audience in Illinois, averaged over a 12-month period;
20 (5) in the case of a hybrid entity that has both print
21 and digital outlets, meets the requirements in either
22 paragraph (3) or (4) of this definition;
23 (6) has disclosed in its print publication or on its
24 website its beneficial ownership or, in the case of a
25 not-for-profit entity, its board of directors;
26 (7) in the case of an entity that maintains tax status

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1 under Section 501(c)(3) of the federal Internal Revenue
2 Code, has declared the coverage of local or State news as
3 the stated mission in its filings with the Internal
4 Revenue Service;
5 (8) has not received any payments of more than 50% of
6 its gross receipts for the previous year from political
7 action committees or other entities described in Section
8 527 of the federal Internal Revenue Code or from an
9 organization that maintains Section 501(c)(4) or 501(c)(6)
10 status under the federal Internal Revenue Code, unless
11 those payments are for political advertising during the
12 lowest unit windows and using comparable rates; and
13 (9) has not received more than 30% of its revenue from
14 the previous taxable year from political advertisements
15 during lowest unit windows.
16 "Local news organization" does not include an organization
17that received more than $100,000 from organizations described
18in paragraph (8) during the taxable year or any preceding
19taxable year.
20 "Lowest unit window" has the meaning given to that term by
21the Federal Communications Commission in its campaign
22advertising rate rules.
23 "New journalism position" means an employment position
24that results in a net increase in qualified journalists
25employed by the local news organization from January 1 of the
26preceding calendar year compared to January 1 of the calendar

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1year in which a credit under this Act is sought.
2 "Private fund" means a corporation that:
3 (1) would be considered an investment company under
4 Section 3 of the Investment Company Act of 1940, 15 U.S.C.
5 80a-3, but for the application of paragraph (1) or (7) of
6 subsection (c) of that Section;
7 (2) is not a venture capital fund, as defined in
8 Section 275.203(l)-1 of Title 17 of the Code of Federal
9 Regulations, as in effect on the effective date of this
10 Act; and
11 (3) is not an institution selected under Section 107
12 of the federal Community Development Banking and Financial
13 Institutions Act of 1994.
14 "Qualified journalist" means a person who:
15 (1) is employed for an average of at least 30 hours per
16 week; and
17 (2) is responsible for gathering, developing,
18 preparing, directing the recording of, producing,
19 collecting, photographing, recording, writing, editing,
20 reporting, designing, presenting, distributing, or
21 publishing original news or information that concerns
22 local matters of public interest.
23 "Reporting period" means the quarter for which a return is
24required to be filed under Article 7 of the Illinois Income Tax
25Act.

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1 Section 40-10. Credit award. For reporting periods that
2begin on or after January 1, 2025 and before January 1, 2030,
3employers, including employers that maintain tax status under
4Section 501(c)(3) of the federal Internal Revenue Code, that
5are local news organizations and that are required to deduct
6and withhold taxes as provided in Article 7 of the Illinois
7Income Tax Act are eligible to receive a credit against
8payments due under Section 704A of the Illinois Income Tax
9Act. The credit shall be $15,000 per qualified journalist
10employed and paid by the employer during the 12-month period
11immediately preceding the date on which the employer applies
12for a credit under this Section. An additional credit of
13$10,000 shall be awarded against payments due under Section
14704A of the Illinois Income Tax Act for each qualified
15journalist who fills a new journalism position for the
16employer during the 12-month period immediately preceding the
17date on which the employer applies for a credit under this
18Section. No more than $150,000 in credits under this Act may be
19awarded to any one local news organization in a single
20calendar year. If the local news organization is not
21independently owned or lists a private fund among its
22beneficial ownership, no more than $250,000 in credits may be
23awarded in a single calendar year to all local news
24organizations that share the same ownership interest. The
25total amount of credits that may be awarded under this Act in
26any given calendar year may not exceed $5,000,000, of which no

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1more than $4,000,000 may be awarded for the $15,000 credit
2that applies to qualified journalists, and no more than
3$1,000,000 may be awarded for the additional $10,000 credit
4that is awarded for new journalism positions. Credits under
5this Section shall be awarded by the Department on a
6first-come, first-served basis.
7 The Department shall issue a credit certificate to each
8eligible local news organization. Upon issuance of the credit
9certificate, the Department shall inform the Department of
10Revenue, in the form and manner as agreed between the
11agencies, of the date the credit certificate was issued, the
12name and tax identification number of the recipient, the
13amount of the credit, and such other information as the
14Department of Revenue may require. The credit certificate
15shall be attached to the taxpayer's return.
16 The credit shall be applied to the first reporting period
17after the credit certificate is issued and that begins on or
18after January 1, 2025. If the amount of credit exceeds the
19liability for the reporting period, the excess credit shall be
20refunded to the taxpayer.
21 Section 40-15. Application for local journalism
22certificate.
23 (a) In order to qualify for a tax credit award under this
24Act, an applicant must apply with the Department, in the form
25and manner required by the Department, for each award cycle

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1for which a credit under this Act is sought, providing
2information necessary to calculate the tax credit award and
3any additional information as reasonably required by the
4Department. A separate application shall be filed for each
5local news organization. The tax credit award shall be
6calculated based upon the filing by the applicant on forms
7prescribed by the Department. The Department shall cooperate
8with the Department of Revenue as needed in order to determine
9credit amount and eligibility.
10 (b) Upon satisfactory review of the application, the
11Department shall issue a local journalism certificate stating
12the amount of the tax credit award to which the applicant is
13entitled for the credit period and shall contemporaneously
14notify the applicant and Department of Revenue upon issuance
15of the certificate.
16 Section 40-20. Powers of the Department. The Department
17and the Department of Revenue may, in consultation, adopt any
18rules necessary to administer the provisions of this Act.
19 Section 40-25. Program terms and conditions. Any
20documentary materials or data made available or received from
21an applicant by any agent or employee of the Department are
22confidential and are not public records to the extent that the
23materials or data consist of commercial or financial
24information regarding the operation of, or the production of,

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1the applicant or recipient of any tax credit award under this
2Act.
3 Section 40-900. The Illinois Income Tax Act is amended by
4changing Section 704A as follows:
5 (35 ILCS 5/704A)
6 Sec. 704A. Employer's return and payment of tax withheld.
7 (a) In general, every employer who deducts and withholds
8or is required to deduct and withhold tax under this Act on or
9after January 1, 2008 shall make those payments and returns as
10provided in this Section.
11 (b) Returns. Every employer shall, in the form and manner
12required by the Department, make returns with respect to taxes
13withheld or required to be withheld under this Article 7 for
14each quarter beginning on or after January 1, 2008, on or
15before the last day of the first month following the close of
16that quarter.
17 (c) Payments. With respect to amounts withheld or required
18to be withheld on or after January 1, 2008:
19 (1) Semi-weekly payments. For each calendar year, each
20 employer who withheld or was required to withhold more
21 than $12,000 during the one-year period ending on June 30
22 of the immediately preceding calendar year, payment must
23 be made:
24 (A) on or before each Friday of the calendar year,

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1 for taxes withheld or required to be withheld on the
2 immediately preceding Saturday, Sunday, Monday, or
3 Tuesday;
4 (B) on or before each Wednesday of the calendar
5 year, for taxes withheld or required to be withheld on
6 the immediately preceding Wednesday, Thursday, or
7 Friday.
8 Beginning with calendar year 2011, payments made under
9 this paragraph (1) of subsection (c) must be made by
10 electronic funds transfer.
11 (2) Semi-weekly payments. Any employer who withholds
12 or is required to withhold more than $12,000 in any
13 quarter of a calendar year is required to make payments on
14 the dates set forth under item (1) of this subsection (c)
15 for each remaining quarter of that calendar year and for
16 the subsequent calendar year.
17 (3) Monthly payments. Each employer, other than an
18 employer described in items (1) or (2) of this subsection,
19 shall pay to the Department, on or before the 15th day of
20 each month the taxes withheld or required to be withheld
21 during the immediately preceding month.
22 (4) Payments with returns. Each employer shall pay to
23 the Department, on or before the due date for each return
24 required to be filed under this Section, any tax withheld
25 or required to be withheld during the period for which the
26 return is due and not previously paid to the Department.

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1 (d) Regulatory authority. The Department may, by rule:
2 (1) Permit employers, in lieu of the requirements of
3 subsections (b) and (c), to file annual returns due on or
4 before January 31 of the year for taxes withheld or
5 required to be withheld during the previous calendar year
6 and, if the aggregate amounts required to be withheld by
7 the employer under this Article 7 (other than amounts
8 required to be withheld under Section 709.5) do not exceed
9 $1,000 for the previous calendar year, to pay the taxes
10 required to be shown on each such return no later than the
11 due date for such return.
12 (2) Provide that any payment required to be made under
13 subsection (c)(1) or (c)(2) is deemed to be timely to the
14 extent paid by electronic funds transfer on or before the
15 due date for deposit of federal income taxes withheld
16 from, or federal employment taxes due with respect to, the
17 wages from which the Illinois taxes were withheld.
18 (3) Designate one or more depositories to which
19 payment of taxes required to be withheld under this
20 Article 7 must be paid by some or all employers.
21 (4) Increase the threshold dollar amounts at which
22 employers are required to make semi-weekly payments under
23 subsection (c)(1) or (c)(2).
24 (e) Annual return and payment. Every employer who deducts
25and withholds or is required to deduct and withhold tax from a
26person engaged in domestic service employment, as that term is

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1defined in Section 3510 of the Internal Revenue Code, may
2comply with the requirements of this Section with respect to
3such employees by filing an annual return and paying the taxes
4required to be deducted and withheld on or before the 15th day
5of the fourth month following the close of the employer's
6taxable year. The Department may allow the employer's return
7to be submitted with the employer's individual income tax
8return or to be submitted with a return due from the employer
9under Section 1400.2 of the Unemployment Insurance Act.
10 (f) Magnetic media and electronic filing. With respect to
11taxes withheld in calendar years prior to 2017, any W-2 Form
12that, under the Internal Revenue Code and regulations
13promulgated thereunder, is required to be submitted to the
14Internal Revenue Service on magnetic media or electronically
15must also be submitted to the Department on magnetic media or
16electronically for Illinois purposes, if required by the
17Department.
18 With respect to taxes withheld in 2017 and subsequent
19calendar years, the Department may, by rule, require that any
20return (including any amended return) under this Section and
21any W-2 Form that is required to be submitted to the Department
22must be submitted on magnetic media or electronically.
23 The due date for submitting W-2 Forms shall be as
24prescribed by the Department by rule.
25 (g) For amounts deducted or withheld after December 31,
262009, a taxpayer who makes an election under subsection (f) of

HB4951 Enrolled- 155 -LRB103 38094 HLH 68226 b
1Section 5-15 of the Economic Development for a Growing Economy
2Tax Credit Act for a taxable year shall be allowed a credit
3against payments due under this Section for amounts withheld
4during the first calendar year beginning after the end of that
5taxable year equal to the amount of the credit for the
6incremental income tax attributable to full-time employees of
7the taxpayer awarded to the taxpayer by the Department of
8Commerce and Economic Opportunity under the Economic
9Development for a Growing Economy Tax Credit Act for the
10taxable year and credits not previously claimed and allowed to
11be carried forward under Section 211(4) of this Act as
12provided in subsection (f) of Section 5-15 of the Economic
13Development for a Growing Economy Tax Credit Act. The credit
14or credits may not reduce the taxpayer's obligation for any
15payment due under this Section to less than zero. If the amount
16of the credit or credits exceeds the total payments due under
17this Section with respect to amounts withheld during the
18calendar year, the excess may be carried forward and applied
19against the taxpayer's liability under this Section in the
20succeeding calendar years as allowed to be carried forward
21under paragraph (4) of Section 211 of this Act. The credit or
22credits shall be applied to the earliest year for which there
23is a tax liability. If there are credits from more than one
24taxable year that are available to offset a liability, the
25earlier credit shall be applied first. Each employer who
26deducts and withholds or is required to deduct and withhold

HB4951 Enrolled- 156 -LRB103 38094 HLH 68226 b
1tax under this Act and who retains income tax withholdings
2under subsection (f) of Section 5-15 of the Economic
3Development for a Growing Economy Tax Credit Act must make a
4return with respect to such taxes and retained amounts in the
5form and manner that the Department, by rule, requires and pay
6to the Department or to a depositary designated by the
7Department those withheld taxes not retained by the taxpayer.
8For purposes of this subsection (g), the term taxpayer shall
9include taxpayer and members of the taxpayer's unitary
10business group as defined under paragraph (27) of subsection
11(a) of Section 1501 of this Act. This Section is exempt from
12the provisions of Section 250 of this Act. No credit awarded
13under the Economic Development for a Growing Economy Tax
14Credit Act for agreements entered into on or after January 1,
152015 may be credited against payments due under this Section.
16 (g-1) For amounts deducted or withheld after December 31,
172024, a taxpayer who makes an election under the Reimagining
18Energy and Vehicles in Illinois Act shall be allowed a credit
19against payments due under this Section for amounts withheld
20during the first quarterly reporting period beginning after
21the certificate is issued equal to the portion of the REV
22Illinois Credit attributable to the incremental income tax
23attributable to new employees and retained employees as
24certified by the Department of Commerce and Economic
25Opportunity pursuant to an agreement with the taxpayer under
26the Reimagining Energy and Vehicles in Illinois Act for the

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1taxable year. The credit or credits may not reduce the
2taxpayer's obligation for any payment due under this Section
3to less than zero. If the amount of the credit or credits
4exceeds the total payments due under this Section with respect
5to amounts withheld during the quarterly reporting period, the
6excess may be carried forward and applied against the
7taxpayer's liability under this Section in the succeeding
8quarterly reporting period as allowed to be carried forward
9under paragraph (4) of Section 211 of this Act. The credit or
10credits shall be applied to the earliest quarterly reporting
11period for which there is a tax liability. If there are credits
12from more than one quarterly reporting period that are
13available to offset a liability, the earlier credit shall be
14applied first. Each employer who deducts and withholds or is
15required to deduct and withhold tax under this Act and who
16retains income tax withholdings this subsection must make a
17return with respect to such taxes and retained amounts in the
18form and manner that the Department, by rule, requires and pay
19to the Department or to a depositary designated by the
20Department those withheld taxes not retained by the taxpayer.
21For purposes of this subsection (g-1), the term taxpayer shall
22include taxpayer and members of the taxpayer's unitary
23business group as defined under paragraph (27) of subsection
24(a) of Section 1501 of this Act. This Section is exempt from
25the provisions of Section 250 of this Act.
26 (g-2) For amounts deducted or withheld after December 31,

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12024, a taxpayer who makes an election under the Manufacturing
2Illinois Chips for Real Opportunity (MICRO) Act shall be
3allowed a credit against payments due under this Section for
4amounts withheld during the first quarterly reporting period
5beginning after the certificate is issued equal to the portion
6of the MICRO Illinois Credit attributable to the incremental
7income tax attributable to new employees and retained
8employees as certified by the Department of Commerce and
9Economic Opportunity pursuant to an agreement with the
10taxpayer under the Manufacturing Illinois Chips for Real
11Opportunity (MICRO) Act for the taxable year. The credit or
12credits may not reduce the taxpayer's obligation for any
13payment due under this Section to less than zero. If the amount
14of the credit or credits exceeds the total payments due under
15this Section with respect to amounts withheld during the
16quarterly reporting period, the excess may be carried forward
17and applied against the taxpayer's liability under this
18Section in the succeeding quarterly reporting period as
19allowed to be carried forward under paragraph (4) of Section
20211 of this Act. The credit or credits shall be applied to the
21earliest quarterly reporting period for which there is a tax
22liability. If there are credits from more than one quarterly
23reporting period that are available to offset a liability, the
24earlier credit shall be applied first. Each employer who
25deducts and withholds or is required to deduct and withhold
26tax under this Act and who retains income tax withholdings

HB4951 Enrolled- 159 -LRB103 38094 HLH 68226 b
1this subsection must make a return with respect to such taxes
2and retained amounts in the form and manner that the
3Department, by rule, requires and pay to the Department or to a
4depositary designated by the Department those withheld taxes
5not retained by the taxpayer. For purposes of this subsection,
6the term taxpayer shall include taxpayer and members of the
7taxpayer's unitary business group as defined under paragraph
8(27) of subsection (a) of Section 1501 of this Act. This
9Section is exempt from the provisions of Section 250 of this
10Act.
11 (h) An employer may claim a credit against payments due
12under this Section for amounts withheld during the first
13calendar year ending after the date on which a tax credit
14certificate was issued under Section 35 of the Small Business
15Job Creation Tax Credit Act. The credit shall be equal to the
16amount shown on the certificate, but may not reduce the
17taxpayer's obligation for any payment due under this Section
18to less than zero. If the amount of the credit exceeds the
19total payments due under this Section with respect to amounts
20withheld during the calendar year, the excess may be carried
21forward and applied against the taxpayer's liability under
22this Section in the 5 succeeding calendar years. The credit
23shall be applied to the earliest year for which there is a tax
24liability. If there are credits from more than one calendar
25year that are available to offset a liability, the earlier
26credit shall be applied first. This Section is exempt from the

HB4951 Enrolled- 160 -LRB103 38094 HLH 68226 b
1provisions of Section 250 of this Act.
2 (i) Each employer with 50 or fewer full-time equivalent
3employees during the reporting period may claim a credit
4against the payments due under this Section for each qualified
5employee in an amount equal to the maximum credit allowable.
6The credit may be taken against payments due for reporting
7periods that begin on or after January 1, 2020, and end on or
8before December 31, 2027. An employer may not claim a credit
9for an employee who has worked fewer than 90 consecutive days
10immediately preceding the reporting period; however, such
11credits may accrue during that 90-day period and be claimed
12against payments under this Section for future reporting
13periods after the employee has worked for the employer at
14least 90 consecutive days. In no event may the credit exceed
15the employer's liability for the reporting period. Each
16employer who deducts and withholds or is required to deduct
17and withhold tax under this Act and who retains income tax
18withholdings under this subsection must make a return with
19respect to such taxes and retained amounts in the form and
20manner that the Department, by rule, requires and pay to the
21Department or to a depositary designated by the Department
22those withheld taxes not retained by the employer.
23 For each reporting period, the employer may not claim a
24credit or credits for more employees than the number of
25employees making less than the minimum or reduced wage for the
26current calendar year during the last reporting period of the

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1preceding calendar year. Notwithstanding any other provision
2of this subsection, an employer shall not be eligible for
3credits for a reporting period unless the average wage paid by
4the employer per employee for all employees making less than
5$55,000 during the reporting period is greater than the
6average wage paid by the employer per employee for all
7employees making less than $55,000 during the same reporting
8period of the prior calendar year.
9 For purposes of this subsection (i):
10 "Compensation paid in Illinois" has the meaning ascribed
11to that term under Section 304(a)(2)(B) of this Act.
12 "Employer" and "employee" have the meaning ascribed to
13those terms in the Minimum Wage Law, except that "employee"
14also includes employees who work for an employer with fewer
15than 4 employees. Employers that operate more than one
16establishment pursuant to a franchise agreement or that
17constitute members of a unitary business group shall aggregate
18their employees for purposes of determining eligibility for
19the credit.
20 "Full-time equivalent employees" means the ratio of the
21number of paid hours during the reporting period and the
22number of working hours in that period.
23 "Maximum credit" means the percentage listed below of the
24difference between the amount of compensation paid in Illinois
25to employees who are paid not more than the required minimum
26wage reduced by the amount of compensation paid in Illinois to

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1employees who were paid less than the current required minimum
2wage during the reporting period prior to each increase in the
3required minimum wage on January 1. If an employer pays an
4employee more than the required minimum wage and that employee
5previously earned less than the required minimum wage, the
6employer may include the portion that does not exceed the
7required minimum wage as compensation paid in Illinois to
8employees who are paid not more than the required minimum
9wage.
10 (1) 25% for reporting periods beginning on or after
11 January 1, 2020 and ending on or before December 31, 2020;
12 (2) 21% for reporting periods beginning on or after
13 January 1, 2021 and ending on or before December 31, 2021;
14 (3) 17% for reporting periods beginning on or after
15 January 1, 2022 and ending on or before December 31, 2022;
16 (4) 13% for reporting periods beginning on or after
17 January 1, 2023 and ending on or before December 31, 2023;
18 (5) 9% for reporting periods beginning on or after
19 January 1, 2024 and ending on or before December 31, 2024;
20 (6) 5% for reporting periods beginning on or after
21 January 1, 2025 and ending on or before December 31, 2025.
22 The amount computed under this subsection may continue to
23be claimed for reporting periods beginning on or after January
241, 2026 and:
25 (A) ending on or before December 31, 2026 for
26 employers with more than 5 employees; or

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1 (B) ending on or before December 31, 2027 for
2 employers with no more than 5 employees.
3 "Qualified employee" means an employee who is paid not
4more than the required minimum wage and has an average wage
5paid per hour by the employer during the reporting period
6equal to or greater than his or her average wage paid per hour
7by the employer during each reporting period for the
8immediately preceding 12 months. A new qualified employee is
9deemed to have earned the required minimum wage in the
10preceding reporting period.
11 "Reporting period" means the quarter for which a return is
12required to be filed under subsection (b) of this Section.
13 (j) For reporting periods beginning on or after January 1,
142023, if a private employer grants all of its employees the
15option of taking a paid leave of absence of at least 30 days
16for the purpose of serving as an organ donor or bone marrow
17donor, then the private employer may take a credit against the
18payments due under this Section in an amount equal to the
19amount withheld under this Section with respect to wages paid
20while the employee is on organ donation leave, not to exceed
21$1,000 in withholdings for each employee who takes organ
22donation leave. To be eligible for the credit, such a leave of
23absence must be taken without loss of pay, vacation time,
24compensatory time, personal days, or sick time for at least
25the first 30 days of the leave of absence. The private employer
26shall adopt rules governing organ donation leave, including

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1rules that (i) establish conditions and procedures for
2requesting and approving leave and (ii) require medical
3documentation of the proposed organ or bone marrow donation
4before leave is approved by the private employer. A private
5employer must provide, in the manner required by the
6Department, documentation from the employee's medical
7provider, which the private employer receives from the
8employee, that verifies the employee's organ donation. The
9private employer must also provide, in the manner required by
10the Department, documentation that shows that a qualifying
11organ donor leave policy was in place and offered to all
12qualifying employees at the time the leave was taken. For the
13private employer to receive the tax credit, the employee
14taking organ donor leave must allow for the applicable medical
15records to be disclosed to the Department. If the private
16employer cannot provide the required documentation to the
17Department, then the private employer is ineligible for the
18credit under this Section. A private employer must also
19provide, in the form required by the Department, any
20additional documentation or information required by the
21Department to administer the credit under this Section. The
22credit under this subsection (j) shall be taken within one
23year after the date upon which the organ donation leave
24begins. If the leave taken spans into a second tax year, the
25employer qualifies for the allowable credit in the later of
26the 2 years. If the amount of credit exceeds the tax liability

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1for the year, the excess may be carried and applied to the tax
2liability for the 3 taxable years following the excess credit
3year. The tax credit shall be applied to the earliest year for
4which there is a tax liability. If there are credits for more
5than one year that are available to offset liability, the
6earlier credit shall be applied first.
7 Nothing in this subsection (j) prohibits a private
8employer from providing an unpaid leave of absence to its
9employees for the purpose of serving as an organ donor or bone
10marrow donor; however, if the employer's policy provides for
11fewer than 30 days of paid leave for organ or bone marrow
12donation, then the employer shall not be eligible for the
13credit under this Section.
14 As used in this subsection (j):
15 "Organ" means any biological tissue of the human body that
16may be donated by a living donor, including, but not limited
17to, the kidney, liver, lung, pancreas, intestine, bone, skin,
18or any subpart of those organs.
19 "Organ donor" means a person from whose body an organ is
20taken to be transferred to the body of another person.
21 "Private employer" means a sole proprietorship,
22corporation, partnership, limited liability company, or other
23entity with one or more employees. "Private employer" does not
24include a municipality, county, State agency, or other public
25employer.
26 This subsection (j) is exempt from the provisions of

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1Section 250 of this Act.
2 (k) A taxpayer who is issued a certificate under the Local
3Journalism Sustainability Act for a taxable year shall be
4allowed a credit against payments due under this Section as
5provided in that Act.
6(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
7102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,
8Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff.
92-3-23.)
10
ARTICLE 45.
11 Section 45-5. The Live Theater Production Tax Credit Act
12is amended by changing Sections 10-10, 10-20, and 10-40 as
13follows:
14 (35 ILCS 17/10-10)
15 Sec. 10-10. Definitions. As used in this Act:
16 "Accredited theater production" means a for-profit live
17stage presentation in a qualified production facility, as
18defined in this Section, that is either (i) a pre-Broadway
19production or (ii) a long-run production for which the
20aggregate Illinois labor and marketing expenditures exceed
21$100,000. For credits awarded under this Act on or after July
221, 2022 in State Fiscal Year 2023, "accredited theater
23production" also includes any commercial Broadway touring

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1show. For credits awarded under this Act on or after July 1,
22024, "accredited theater production" also includes non-profit
3theater productions.
4 "Commercial Broadway touring show" means a production that
5(i) is performed in a qualified production facility and plays
6in more than 2 other markets in North America outside of
7Illinois within 12 months of its Illinois presentation and
8(ii) has Illinois production spending of not less than
9$100,000, as shown on the applicant's application for the
10credit.
11 "Pre-Broadway production" means a live stage production
12that, (i) in its original or adaptive version, is performed in
13a qualified production facility with the goal of having a
14presentation scheduled for Broadway's Theater District in New
15York City within 12 months after its Illinois presentation and
16(ii) has Illinois production spending of not less than
17$100,000, as shown on the applicant's application for the
18credit.
19 "Long-run production" means a live stage production that
20is performed in a qualified production facility for longer
21than 8 weeks, with at least 6 performances per week, and
22includes a production that spans the end of one tax year and
23the commencement of a new tax year that, in combination, meets
24the criteria set forth in this definition making it a long-run
25production eligible for a theater tax credit award in each tax
26year or portion thereof.

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1 "Non-profit theater production" means a live stage
2production that is at least 75 minutes in length with a written
3script that (i) is produced by a 501(c)3 non-profit registered
4in the State of Illinois for at least 5 years, (ii) has
5Illinois production spending of not less than $10,000, as
6shown on the applicant's application for the credit, and (iii)
7has a minimum annual operating budget of $25,000 or more, as
8shown on the applicant's application for the credit.
9 "Accredited theater production certificate" means a
10certificate issued by the Department certifying that the
11production is an accredited theater production that meets the
12guidelines of this Act.
13 "Applicant" means a taxpayer that is a theater producer,
14owner, licensee, operator, or presenter that is presenting or
15has presented a live stage presentation located within the
16State of Illinois who:
17 (1) owns or licenses the theatrical rights of the
18 stage presentation for the Illinois production period; or
19 (2) has contracted or will contract directly with the
20 owner or licensee of the theatrical rights or a person
21 acting on behalf of the owner or licensee to provide live
22 performances of the production.
23 An applicant that directly or indirectly owns, controls,
24or operates multiple qualified production facilities shall be
25presumed to be and considered for the purposes of this Act to
26be a single applicant; provided, however, that as to each of

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1the applicant's qualified production facilities, the applicant
2shall be eligible to separately and contemporaneously (i)
3apply for and obtain accredited theater production
4certificates, (ii) stage accredited theater productions, and
5(iii) apply for and receive a tax credit award certificate for
6each of the applicant's accredited theater productions
7performed at each of the applicant's qualified production
8facilities.
9 "Department" means the Department of Commerce and Economic
10Opportunity.
11 "Director" means the Director of the Department.
12 "Illinois labor expenditure" means gross salary or wages
13including, but not limited to, taxes, benefits, and any other
14consideration incurred or paid to non-talent employees of the
15applicant for services rendered to and on behalf of the
16accredited theater production. To qualify as an Illinois labor
17expenditure, the expenditure must be:
18 (1) incurred or paid by the applicant on or after the
19 effective date of the Act for services related to any
20 portion of an accredited theater production from its
21 pre-production stages, including, but not limited to, the
22 writing of the script, casting, hiring of service
23 providers, purchases from vendors, marketing, advertising,
24 public relations, load in, rehearsals, performances, other
25 accredited theater production related activities, and load
26 out;

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1 (2) directly attributable to the accredited theater
2 production;
3 (3) limited to the first $100,000 of wages incurred or
4 paid to each employee of an accredited theater production
5 in each tax year;
6 (4) included in the federal income tax basis of the
7 property;
8 (5) paid in the tax year for which the applicant is
9 claiming the tax credit award, or no later than 60 days
10 after the end of the tax year;
11 (6) paid to persons residing in Illinois at the time
12 payments were made; and
13 (7) reasonable in the circumstances.
14 "Illinois production spending" means any and all expenses
15directly or indirectly incurred relating to an accredited
16theater production presented in any qualified production
17facility of the applicant, including, but not limited to,
18expenditures for:
19 (1) national marketing, public relations, and the
20 creation and placement of print, electronic, television,
21 billboard, and other forms of advertising; and
22 (2) the construction and fabrication of scenic
23 materials and elements; provided, however, that the
24 maximum amount of expenditures attributable to the
25 construction and fabrication of scenic materials and
26 elements eligible for a tax credit award shall not exceed

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1 $500,000 per applicant per production in any single tax
2 year.
3 "Qualified production facility" means a facility located
4in the State in which live theatrical productions are, or are
5intended to be, exclusively presented that contains at least
6one stage, a seating capacity of 1,200 or more seats or, if the
7live theater production is a non-profit theater production, a
8seating capacity of 50 or more seats, and dressing rooms,
9storage areas, and other ancillary amenities necessary for the
10accredited theater production.
11 "Tax credit award" means the issuance to a taxpayer by the
12Department of a tax credit award in conformance with Sections
1310-40 and 10-45 of this Act.
14 "Tax year" means a calendar year for the period January 1
15to and including December 31.
16(Source: P.A. 102-1112, eff. 12-21-22.)
17 (35 ILCS 17/10-20)
18 Sec. 10-20. Tax credit award. Subject to the conditions
19set forth in this Act, an applicant is entitled to a tax credit
20award as approved by the Department for qualifying Illinois
21labor expenditures and Illinois production spending for each
22tax year in which the applicant is awarded an accredited
23theater production certificate issued by the Department. The
24amount of tax credits awarded pursuant to this Act shall not
25exceed $2,000,000 in any State fiscal year ending on or before

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1June 30, 2022. The , except that the amount of tax credits
2awarded pursuant to this Act for the State fiscal year ending
3on June 30, 2023 or the State fiscal year ending on June 30,
42024 shall not exceed $4,000,000. For the State fiscal year
5ending on June 30, 2023 and the State fiscal year ending on
6June 30, 2024, no more than $2,000,000 in credits may be
7awarded in either of those fiscal years to accredited theater
8productions that are not commercial Broadway touring shows,
9and no more than $2,000,000 in credits may be awarded in either
10of those fiscal years to commercial Broadway touring shows.
11For State fiscal years ending on or after June 30, 2025, the
12amount of tax credits awarded under this Act shall not exceed
13$6,000,000, with no more than $2,000,000 in credits awarded
14for long-run productions and pre-Broadway productions, no more
15than $2,000,000 in credits awarded for commercial Broadway
16touring shows, and no more than $2,000,000 in credits awarded
17for non-profit theater productions. In the case of credits
18awarded under this Act for non-profit theater productions, no
19more than $100,000 in credits may be awarded to any single
20non-profit theater production. Credits shall be awarded on a
21first-come, first-served basis. Notwithstanding the foregoing,
22if the amount of credits applied for in any fiscal year exceeds
23the amount authorized to be awarded under this Section, the
24excess credit amount shall be awarded in the next fiscal year
25in which credits remain available for award and shall be
26treated as having been applied for on the first day of that

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1fiscal year.
2(Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.)
3 (35 ILCS 17/10-40)
4 Sec. 10-40. Issuance of Tax Credit Award Certificate.
5 (a) In order to qualify for a tax credit award under this
6Act, an applicant must file an application for each accredited
7theater production at each of the applicant's qualified
8production facilities, on forms prescribed by the Department,
9providing information necessary to calculate the tax credit
10award and any additional information as reasonably required by
11the Department.
12 (b) Upon satisfactory review of the application, the
13Department shall issue a tax credit award certificate stating
14the amount of the tax credit award to which the applicant is
15entitled for that tax year and shall contemporaneously notify
16the applicant and Illinois Department of Revenue in accordance
17with Section 222 of the Illinois Income Tax Act or, if the
18applicant is a nonprofit theater production, subsection (k) of
19Section 704A of the Illinois Income Tax Act, as applicable.
20(Source: P.A. 97-636, eff. 6-1-12.)
21 Section 45-10. The Illinois Income Tax Act is amended by
22changing Sections 222 and 704A as follows:
23 (35 ILCS 5/222)

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1 Sec. 222. Live theater production credit.
2 (a) For tax years beginning on or after January 1, 2012 and
3beginning prior to January 1, 2027, a taxpayer who has
4received a tax credit award under the Live Theater Production
5Tax Credit Act for a long-run production, a pre-Broadway
6production, or a commercial Broadway touring show is entitled
7to a credit against the taxes imposed under subsections (a)
8and (b) of Section 201 of this Act in an amount determined
9under that Act by the Department of Commerce and Economic
10Opportunity.
11 (b) For taxable years ending before December 31, 2023, if
12the taxpayer is a partnership, limited liability partnership,
13limited liability company, or Subchapter S corporation, the
14tax credit award is allowed to the partners, unit holders, or
15shareholders in accordance with the determination of income
16and distributive share of income under Sections 702 and 704
17and Subchapter S of the Internal Revenue Code. For taxable
18years ending on or after December 31, 2023, if the taxpayer is
19a partnership or Subchapter S corporation, then the provisions
20of Section 251 apply.
21 (c) A sale, assignment, or transfer of the tax credit
22award may be made by the taxpayer earning the credit within one
23year after the credit is awarded in accordance with rules
24adopted by the Department of Commerce and Economic
25Opportunity.
26 (d) The Department of Revenue, in cooperation with the

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1Department of Commerce and Economic Opportunity, shall adopt
2rules to enforce and administer the provisions of this
3Section.
4 (e) The tax credit award may not be carried back. If the
5amount of the credit exceeds the tax liability for the year,
6the excess may be carried forward and applied to the tax
7liability of the 5 tax years following the excess credit year.
8The tax credit award shall be applied to the earliest year for
9which there is a tax liability. If there are credits from more
10than one tax year that are available to offset liability, the
11earlier credit shall be applied first. In no event may a credit
12under this Section reduce the taxpayer's liability to less
13than zero.
14(Source: P.A. 102-16, eff. 6-17-21; 103-396, eff. 1-1-24.)
15 (35 ILCS 5/704A)
16 Sec. 704A. Employer's return and payment of tax withheld.
17 (a) In general, every employer who deducts and withholds
18or is required to deduct and withhold tax under this Act on or
19after January 1, 2008 shall make those payments and returns as
20provided in this Section.
21 (b) Returns. Every employer shall, in the form and manner
22required by the Department, make returns with respect to taxes
23withheld or required to be withheld under this Article 7 for
24each quarter beginning on or after January 1, 2008, on or
25before the last day of the first month following the close of

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1that quarter.
2 (c) Payments. With respect to amounts withheld or required
3to be withheld on or after January 1, 2008:
4 (1) Semi-weekly payments. For each calendar year, each
5 employer who withheld or was required to withhold more
6 than $12,000 during the one-year period ending on June 30
7 of the immediately preceding calendar year, payment must
8 be made:
9 (A) on or before each Friday of the calendar year,
10 for taxes withheld or required to be withheld on the
11 immediately preceding Saturday, Sunday, Monday, or
12 Tuesday;
13 (B) on or before each Wednesday of the calendar
14 year, for taxes withheld or required to be withheld on
15 the immediately preceding Wednesday, Thursday, or
16 Friday.
17 Beginning with calendar year 2011, payments made under
18 this paragraph (1) of subsection (c) must be made by
19 electronic funds transfer.
20 (2) Semi-weekly payments. Any employer who withholds
21 or is required to withhold more than $12,000 in any
22 quarter of a calendar year is required to make payments on
23 the dates set forth under item (1) of this subsection (c)
24 for each remaining quarter of that calendar year and for
25 the subsequent calendar year.
26 (3) Monthly payments. Each employer, other than an

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1 employer described in items (1) or (2) of this subsection,
2 shall pay to the Department, on or before the 15th day of
3 each month the taxes withheld or required to be withheld
4 during the immediately preceding month.
5 (4) Payments with returns. Each employer shall pay to
6 the Department, on or before the due date for each return
7 required to be filed under this Section, any tax withheld
8 or required to be withheld during the period for which the
9 return is due and not previously paid to the Department.
10 (d) Regulatory authority. The Department may, by rule:
11 (1) Permit employers, in lieu of the requirements of
12 subsections (b) and (c), to file annual returns due on or
13 before January 31 of the year for taxes withheld or
14 required to be withheld during the previous calendar year
15 and, if the aggregate amounts required to be withheld by
16 the employer under this Article 7 (other than amounts
17 required to be withheld under Section 709.5) do not exceed
18 $1,000 for the previous calendar year, to pay the taxes
19 required to be shown on each such return no later than the
20 due date for such return.
21 (2) Provide that any payment required to be made under
22 subsection (c)(1) or (c)(2) is deemed to be timely to the
23 extent paid by electronic funds transfer on or before the
24 due date for deposit of federal income taxes withheld
25 from, or federal employment taxes due with respect to, the
26 wages from which the Illinois taxes were withheld.

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1 (3) Designate one or more depositories to which
2 payment of taxes required to be withheld under this
3 Article 7 must be paid by some or all employers.
4 (4) Increase the threshold dollar amounts at which
5 employers are required to make semi-weekly payments under
6 subsection (c)(1) or (c)(2).
7 (e) Annual return and payment. Every employer who deducts
8and withholds or is required to deduct and withhold tax from a
9person engaged in domestic service employment, as that term is
10defined in Section 3510 of the Internal Revenue Code, may
11comply with the requirements of this Section with respect to
12such employees by filing an annual return and paying the taxes
13required to be deducted and withheld on or before the 15th day
14of the fourth month following the close of the employer's
15taxable year. The Department may allow the employer's return
16to be submitted with the employer's individual income tax
17return or to be submitted with a return due from the employer
18under Section 1400.2 of the Unemployment Insurance Act.
19 (f) Magnetic media and electronic filing. With respect to
20taxes withheld in calendar years prior to 2017, any W-2 Form
21that, under the Internal Revenue Code and regulations
22promulgated thereunder, is required to be submitted to the
23Internal Revenue Service on magnetic media or electronically
24must also be submitted to the Department on magnetic media or
25electronically for Illinois purposes, if required by the
26Department.

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1 With respect to taxes withheld in 2017 and subsequent
2calendar years, the Department may, by rule, require that any
3return (including any amended return) under this Section and
4any W-2 Form that is required to be submitted to the Department
5must be submitted on magnetic media or electronically.
6 The due date for submitting W-2 Forms shall be as
7prescribed by the Department by rule.
8 (g) For amounts deducted or withheld after December 31,
92009, a taxpayer who makes an election under subsection (f) of
10Section 5-15 of the Economic Development for a Growing Economy
11Tax Credit Act for a taxable year shall be allowed a credit
12against payments due under this Section for amounts withheld
13during the first calendar year beginning after the end of that
14taxable year equal to the amount of the credit for the
15incremental income tax attributable to full-time employees of
16the taxpayer awarded to the taxpayer by the Department of
17Commerce and Economic Opportunity under the Economic
18Development for a Growing Economy Tax Credit Act for the
19taxable year and credits not previously claimed and allowed to
20be carried forward under Section 211(4) of this Act as
21provided in subsection (f) of Section 5-15 of the Economic
22Development for a Growing Economy Tax Credit Act. The credit
23or credits may not reduce the taxpayer's obligation for any
24payment due under this Section to less than zero. If the amount
25of the credit or credits exceeds the total payments due under
26this Section with respect to amounts withheld during the

HB4951 Enrolled- 180 -LRB103 38094 HLH 68226 b
1calendar year, the excess may be carried forward and applied
2against the taxpayer's liability under this Section in the
3succeeding calendar years as allowed to be carried forward
4under paragraph (4) of Section 211 of this Act. The credit or
5credits shall be applied to the earliest year for which there
6is a tax liability. If there are credits from more than one
7taxable year that are available to offset a liability, the
8earlier credit shall be applied first. Each employer who
9deducts and withholds or is required to deduct and withhold
10tax under this Act and who retains income tax withholdings
11under subsection (f) of Section 5-15 of the Economic
12Development for a Growing Economy Tax Credit Act must make a
13return with respect to such taxes and retained amounts in the
14form and manner that the Department, by rule, requires and pay
15to the Department or to a depositary designated by the
16Department those withheld taxes not retained by the taxpayer.
17For purposes of this subsection (g), the term taxpayer shall
18include taxpayer and members of the taxpayer's unitary
19business group as defined under paragraph (27) of subsection
20(a) of Section 1501 of this Act. This Section is exempt from
21the provisions of Section 250 of this Act. No credit awarded
22under the Economic Development for a Growing Economy Tax
23Credit Act for agreements entered into on or after January 1,
242015 may be credited against payments due under this Section.
25 (g-1) For amounts deducted or withheld after December 31,
262024, a taxpayer who makes an election under the Reimagining

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1Energy and Vehicles in Illinois Act shall be allowed a credit
2against payments due under this Section for amounts withheld
3during the first quarterly reporting period beginning after
4the certificate is issued equal to the portion of the REV
5Illinois Credit attributable to the incremental income tax
6attributable to new employees and retained employees as
7certified by the Department of Commerce and Economic
8Opportunity pursuant to an agreement with the taxpayer under
9the Reimagining Energy and Vehicles in Illinois Act for the
10taxable year. The credit or credits may not reduce the
11taxpayer's obligation for any payment due under this Section
12to less than zero. If the amount of the credit or credits
13exceeds the total payments due under this Section with respect
14to amounts withheld during the quarterly reporting period, the
15excess may be carried forward and applied against the
16taxpayer's liability under this Section in the succeeding
17quarterly reporting period as allowed to be carried forward
18under paragraph (4) of Section 211 of this Act. The credit or
19credits shall be applied to the earliest quarterly reporting
20period for which there is a tax liability. If there are credits
21from more than one quarterly reporting period that are
22available to offset a liability, the earlier credit shall be
23applied first. Each employer who deducts and withholds or is
24required to deduct and withhold tax under this Act and who
25retains income tax withholdings this subsection must make a
26return with respect to such taxes and retained amounts in the

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1form and manner that the Department, by rule, requires and pay
2to the Department or to a depositary designated by the
3Department those withheld taxes not retained by the taxpayer.
4For purposes of this subsection (g-1), the term taxpayer shall
5include taxpayer and members of the taxpayer's unitary
6business group as defined under paragraph (27) of subsection
7(a) of Section 1501 of this Act. This Section is exempt from
8the provisions of Section 250 of this Act.
9 (g-2) For amounts deducted or withheld after December 31,
102024, a taxpayer who makes an election under the Manufacturing
11Illinois Chips for Real Opportunity (MICRO) Act shall be
12allowed a credit against payments due under this Section for
13amounts withheld during the first quarterly reporting period
14beginning after the certificate is issued equal to the portion
15of the MICRO Illinois Credit attributable to the incremental
16income tax attributable to new employees and retained
17employees as certified by the Department of Commerce and
18Economic Opportunity pursuant to an agreement with the
19taxpayer under the Manufacturing Illinois Chips for Real
20Opportunity (MICRO) Act for the taxable year. The credit or
21credits may not reduce the taxpayer's obligation for any
22payment due under this Section to less than zero. If the amount
23of the credit or credits exceeds the total payments due under
24this Section with respect to amounts withheld during the
25quarterly reporting period, the excess may be carried forward
26and applied against the taxpayer's liability under this

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1Section in the succeeding quarterly reporting period as
2allowed to be carried forward under paragraph (4) of Section
3211 of this Act. The credit or credits shall be applied to the
4earliest quarterly reporting period for which there is a tax
5liability. If there are credits from more than one quarterly
6reporting period that are available to offset a liability, the
7earlier credit shall be applied first. Each employer who
8deducts and withholds or is required to deduct and withhold
9tax under this Act and who retains income tax withholdings
10this subsection must make a return with respect to such taxes
11and retained amounts in the form and manner that the
12Department, by rule, requires and pay to the Department or to a
13depositary designated by the Department those withheld taxes
14not retained by the taxpayer. For purposes of this subsection,
15the term taxpayer shall include taxpayer and members of the
16taxpayer's unitary business group as defined under paragraph
17(27) of subsection (a) of Section 1501 of this Act. This
18Section is exempt from the provisions of Section 250 of this
19Act.
20 (h) An employer may claim a credit against payments due
21under this Section for amounts withheld during the first
22calendar year ending after the date on which a tax credit
23certificate was issued under Section 35 of the Small Business
24Job Creation Tax Credit Act. The credit shall be equal to the
25amount shown on the certificate, but may not reduce the
26taxpayer's obligation for any payment due under this Section

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1to less than zero. If the amount of the credit exceeds the
2total payments due under this Section with respect to amounts
3withheld during the calendar year, the excess may be carried
4forward and applied against the taxpayer's liability under
5this Section in the 5 succeeding calendar years. The credit
6shall be applied to the earliest year for which there is a tax
7liability. If there are credits from more than one calendar
8year that are available to offset a liability, the earlier
9credit shall be applied first. This Section is exempt from the
10provisions of Section 250 of this Act.
11 (i) Each employer with 50 or fewer full-time equivalent
12employees during the reporting period may claim a credit
13against the payments due under this Section for each qualified
14employee in an amount equal to the maximum credit allowable.
15The credit may be taken against payments due for reporting
16periods that begin on or after January 1, 2020, and end on or
17before December 31, 2027. An employer may not claim a credit
18for an employee who has worked fewer than 90 consecutive days
19immediately preceding the reporting period; however, such
20credits may accrue during that 90-day period and be claimed
21against payments under this Section for future reporting
22periods after the employee has worked for the employer at
23least 90 consecutive days. In no event may the credit exceed
24the employer's liability for the reporting period. Each
25employer who deducts and withholds or is required to deduct
26and withhold tax under this Act and who retains income tax

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1withholdings under this subsection must make a return with
2respect to such taxes and retained amounts in the form and
3manner that the Department, by rule, requires and pay to the
4Department or to a depositary designated by the Department
5those withheld taxes not retained by the employer.
6 For each reporting period, the employer may not claim a
7credit or credits for more employees than the number of
8employees making less than the minimum or reduced wage for the
9current calendar year during the last reporting period of the
10preceding calendar year. Notwithstanding any other provision
11of this subsection, an employer shall not be eligible for
12credits for a reporting period unless the average wage paid by
13the employer per employee for all employees making less than
14$55,000 during the reporting period is greater than the
15average wage paid by the employer per employee for all
16employees making less than $55,000 during the same reporting
17period of the prior calendar year.
18 For purposes of this subsection (i):
19 "Compensation paid in Illinois" has the meaning ascribed
20to that term under Section 304(a)(2)(B) of this Act.
21 "Employer" and "employee" have the meaning ascribed to
22those terms in the Minimum Wage Law, except that "employee"
23also includes employees who work for an employer with fewer
24than 4 employees. Employers that operate more than one
25establishment pursuant to a franchise agreement or that
26constitute members of a unitary business group shall aggregate

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1their employees for purposes of determining eligibility for
2the credit.
3 "Full-time equivalent employees" means the ratio of the
4number of paid hours during the reporting period and the
5number of working hours in that period.
6 "Maximum credit" means the percentage listed below of the
7difference between the amount of compensation paid in Illinois
8to employees who are paid not more than the required minimum
9wage reduced by the amount of compensation paid in Illinois to
10employees who were paid less than the current required minimum
11wage during the reporting period prior to each increase in the
12required minimum wage on January 1. If an employer pays an
13employee more than the required minimum wage and that employee
14previously earned less than the required minimum wage, the
15employer may include the portion that does not exceed the
16required minimum wage as compensation paid in Illinois to
17employees who are paid not more than the required minimum
18wage.
19 (1) 25% for reporting periods beginning on or after
20 January 1, 2020 and ending on or before December 31, 2020;
21 (2) 21% for reporting periods beginning on or after
22 January 1, 2021 and ending on or before December 31, 2021;
23 (3) 17% for reporting periods beginning on or after
24 January 1, 2022 and ending on or before December 31, 2022;
25 (4) 13% for reporting periods beginning on or after
26 January 1, 2023 and ending on or before December 31, 2023;

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1 (5) 9% for reporting periods beginning on or after
2 January 1, 2024 and ending on or before December 31, 2024;
3 (6) 5% for reporting periods beginning on or after
4 January 1, 2025 and ending on or before December 31, 2025.
5 The amount computed under this subsection may continue to
6be claimed for reporting periods beginning on or after January
71, 2026 and:
8 (A) ending on or before December 31, 2026 for
9 employers with more than 5 employees; or
10 (B) ending on or before December 31, 2027 for
11 employers with no more than 5 employees.
12 "Qualified employee" means an employee who is paid not
13more than the required minimum wage and has an average wage
14paid per hour by the employer during the reporting period
15equal to or greater than his or her average wage paid per hour
16by the employer during each reporting period for the
17immediately preceding 12 months. A new qualified employee is
18deemed to have earned the required minimum wage in the
19preceding reporting period.
20 "Reporting period" means the quarter for which a return is
21required to be filed under subsection (b) of this Section.
22 (j) For reporting periods beginning on or after January 1,
232023, if a private employer grants all of its employees the
24option of taking a paid leave of absence of at least 30 days
25for the purpose of serving as an organ donor or bone marrow
26donor, then the private employer may take a credit against the

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1payments due under this Section in an amount equal to the
2amount withheld under this Section with respect to wages paid
3while the employee is on organ donation leave, not to exceed
4$1,000 in withholdings for each employee who takes organ
5donation leave. To be eligible for the credit, such a leave of
6absence must be taken without loss of pay, vacation time,
7compensatory time, personal days, or sick time for at least
8the first 30 days of the leave of absence. The private employer
9shall adopt rules governing organ donation leave, including
10rules that (i) establish conditions and procedures for
11requesting and approving leave and (ii) require medical
12documentation of the proposed organ or bone marrow donation
13before leave is approved by the private employer. A private
14employer must provide, in the manner required by the
15Department, documentation from the employee's medical
16provider, which the private employer receives from the
17employee, that verifies the employee's organ donation. The
18private employer must also provide, in the manner required by
19the Department, documentation that shows that a qualifying
20organ donor leave policy was in place and offered to all
21qualifying employees at the time the leave was taken. For the
22private employer to receive the tax credit, the employee
23taking organ donor leave must allow for the applicable medical
24records to be disclosed to the Department. If the private
25employer cannot provide the required documentation to the
26Department, then the private employer is ineligible for the

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1credit under this Section. A private employer must also
2provide, in the form required by the Department, any
3additional documentation or information required by the
4Department to administer the credit under this Section. The
5credit under this subsection (j) shall be taken within one
6year after the date upon which the organ donation leave
7begins. If the leave taken spans into a second tax year, the
8employer qualifies for the allowable credit in the later of
9the 2 years. If the amount of credit exceeds the tax liability
10for the year, the excess may be carried and applied to the tax
11liability for the 3 taxable years following the excess credit
12year. The tax credit shall be applied to the earliest year for
13which there is a tax liability. If there are credits for more
14than one year that are available to offset liability, the
15earlier credit shall be applied first.
16 Nothing in this subsection (j) prohibits a private
17employer from providing an unpaid leave of absence to its
18employees for the purpose of serving as an organ donor or bone
19marrow donor; however, if the employer's policy provides for
20fewer than 30 days of paid leave for organ or bone marrow
21donation, then the employer shall not be eligible for the
22credit under this Section.
23 As used in this subsection (j):
24 "Organ" means any biological tissue of the human body that
25may be donated by a living donor, including, but not limited
26to, the kidney, liver, lung, pancreas, intestine, bone, skin,

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1or any subpart of those organs.
2 "Organ donor" means a person from whose body an organ is
3taken to be transferred to the body of another person.
4 "Private employer" means a sole proprietorship,
5corporation, partnership, limited liability company, or other
6entity with one or more employees. "Private employer" does not
7include a municipality, county, State agency, or other public
8employer.
9 This subsection (j) is exempt from the provisions of
10Section 250 of this Act.
11 (k) For reporting periods beginning on or after January 1,
122025 and before January 1, 2027, an employer may claim a credit
13against payments due under this Section for amounts withheld
14during the first reporting period to occur after the date on
15which a tax credit certificate is issued for a non-profit
16theater production under Section 10 of the Live Theater
17Production Tax Credit Act. The credit shall be equal to the
18amount shown on the certificate, but may not reduce the
19taxpayer's obligation for any payment due under this Article
20to less than zero. If the amount of the credit exceeds the
21total amount due under this Article with respect to amounts
22withheld during the first reporting period to occur after the
23date on which a tax credit certificate is issued, the excess
24may be carried forward and applied against the taxpayer's
25liability under this Section for reporting periods that occur
26in the 5 succeeding calendar years. The excess credit shall be

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1applied to the earliest reporting period for which there is a
2payment due under this Article. If there are credits from more
3than one reporting period that are available to offset a
4liability, the earlier credit shall be applied first. The
5Department of Revenue, in cooperation with the Department of
6Commerce and Economic Opportunity, shall adopt rules to
7enforce and administer the provisions of this subsection.
8(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
9102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,
10Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff.
112-3-23.)
12
ARTICLE 50.
13 Section 50-1. Short title. This Act may be cited as the
14Music and Musicians Tax Credit and Jobs Act. References in
15this Article to "this Act" mean this Article.
16 Section 50-5. Purpose. The State's economy depends heavily
17on music, professional musicians, music teachers, and
18educators. Illinois is a cultural crown jewel of the United
19States. Illinois and Chicago boast a robust history and
20community of creative artists, writers, musicians, architects,
21orchestras, live music and entertainment venues, civic operas,
22recording studios, and universities. The COVID-19 pandemic and
23the economic fallout that ensued brought on especially

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1difficult circumstances for the live entertainment industry at
2large. Throughout the State, this has meant the closure of and
3overall decrease in culturally engaging aspects of Illinois
4cities from Cairo to Chicago.
5 According to the Americans for the Arts Action Fund, arts
6and culture represent 3.1% of the State's gross domestic
7product and 190,078 jobs. In fact, in 2020, Illinois arts and
8culture was larger than the State's agriculture industry. In
92015, nonprofit arts organizations in the State generated
10$4,000,000,000 in economic activity that supported 111,068
11jobs and generated $478,500,000 in State and local government
12revenue. In Chicago specifically, nonprofit arts groups
13generated $3,200,000,000 in total economic activity and
14$336,500,000 in State and local government revenue. Audiences
15exceeded 36,000,000 people.
16 Yet, during the COVID-19 pandemic, the arts suffered. As a
17result, Illinois arts and culture value added decreased by 9%
18between 2019 and 2020 and employment decreased by 12%.
19Ultimately, $3,200,000,000 and 26,644 jobs were lost. Even as
20live performances have resumed, audience sizes remain below
21pre-pandemic levels. Regional theaters, local orchestras,
22opera houses, and performing arts organizations are reporting
23persistent drops in attendance.
24 It is the policy of this State to promote and encourage the
25training and hiring of Illinois residents who represent the
26diversity of the Illinois population through the creation and

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1implementation of training, education, and recruitment
2programs organized in cooperation with Illinois colleges and
3universities, labor organizations, and the commercial
4for-profit music industry.
5 Section 50-10. Definitions.
6 "Department" means the Department of Commerce and Economic
7Opportunity.
8 "Expenditure in the State" means (i) an expenditure to
9acquire, from a source within the State, property that is
10subject to tax under the Use Tax Act, the Service Use Tax Act,
11the Service Occupation Tax Act, or the Retailers' Occupation
12Tax Act or (ii) an expenditure for compensation for services
13performed within the State that is subject to State income tax
14under the Illinois Income Tax Act.
15 "Illinois labor expenditure" means gross salary or wages,
16including, but not limited to, taxes, benefits, and any other
17consideration incurred or paid to artist employees of the
18applicant for services rendered to and on behalf of the
19qualified music company, provided that the expenditure is:
20 (1) incurred or paid by the applicant on or after the
21 effective date of this Act for services related to any
22 portion of a qualified music company from rehearsals,
23 performances, and any other qualified music company
24 related activities;
25 (2) limited to the first $100,000 of wages incurred or

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1 paid to each employee of a qualified music production in
2 each tax year;
3 (3) paid in the tax year for which the applicant is
4 claiming the tax credit award;
5 (4) paid to persons residing in Illinois at the time
6 payments were made; and
7 (5) reasonable under the circumstances.
8 "Qualified music company" means an entity that (i) is
9authorized to do business in Illinois, (ii) is engaged
10directly or indirectly in the production, distribution, or
11promotion of music, (iii) is certified by the Department as
12meeting the eligibility requirements of this Act, and (iv) has
13executed a contract with the Department providing the terms
14and conditions for its participation.
15 "Qualified music company payroll" or "QMC payroll" means
16wages reported by the qualified music company in box 1 of each
17W-2 form prepared for an employee of the qualified music
18company who is an Illinois resident.
19 "Resident copyright" means the copyright of a musical
20composition written by an Illinois resident or owned by an
21Illinois-domiciled music company, as evidenced by documents of
22ownership, including, but not limited to, registration with
23the United States Copyright Office.
24 "Sound recording" means a recording of music, poetry, or a
25spoken-word performance made, in whole or in part, in
26Illinois. "Sound recording" does not include the audio

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1portions of dialogue or words spoken and recorded as part of
2television news coverage or athletic events.
3 "Sound recording production company" means a company
4engaged in the business of producing sound recordings. "Sound
5recording production company" does not include any person or
6company, or any company owned, affiliated, or controlled, in
7whole or in part, by any company or person, that is in default
8on a loan made by the State or a loan guaranteed by the State,
9nor which has ever declared bankruptcy under which an
10obligation of the company or person to pay or repay public
11funds or moneys was discharged as a part of the bankruptcy.
12 "State-certified production" means a sound recording
13production, or a series of productions, including but not
14limited to master and demonstration recordings, occurring over
15the course of a 12-month period, and the base
16production-related investment that is approved by the
17Department within 180 days after receipt by the Department of
18a complete application for initial certification of a
19production. If the production is not approved within 180 days,
20the Department shall provide a written report to the Senate
21Executive Committee and the House Executive Committee that
22states the reason why the production has not been approved.
23 "Tax credit award" means the issuance to a taxpayer by the
24Department of a tax credit award against the taxes imposed by
25subsections (a) and (b) of Section 201 of the Illinois Income
26Tax Act as provided in this Act.

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1 Section 50-15. Powers of the Department. The Department,
2in addition to those powers granted under the Civil
3Administrative Code of Illinois, is granted and has all the
4powers necessary or convenient to carry out and effectuate the
5purposes and provisions of this Act, including, but not
6limited to, the power and authority to:
7 (1) adopt rules that are necessary and appropriate for
8 the administration of this Act;
9 (2) establish forms for applications, notifications,
10 contracts, or any other agreements with respect to tax
11 credits under this Act and to accept applications for tax
12 credits under this Act at any time during the year;
13 (3) assist applicants for tax credits under this Act
14 to promote, foster, and support sound recording and live
15 theater development and production and its related job
16 creation or retention within the State;
17 (4) gather information and conduct inquiries, as
18 provided in this Act, required for the Department to
19 comply with the provisions of this Act and, without
20 limitation, to obtain information with respect to
21 applicants for the purpose of making any designations or
22 certifications necessary or desirable to assist the
23 Department with any recommendation or guidance in the
24 furtherance of the purposes of this Act and relating to
25 applicants' participation in training, education, and

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1 recruitment programs that are organized in cooperation
2 with Illinois colleges and universities or labor
3 organizations designed to promote and encourage the
4 training and hiring of Illinois residents who represent
5 the diversity of the Illinois population;
6 (5) provide for sufficient personnel to permit
7 administrative, staffing, operating, and related support
8 required to adequately discharge the Department's duties
9 and responsibilities under this Act from funds as may be
10 appropriated by the General Assembly for the
11 administration of this Act; and
12 (6) require that the applicant at all times keep
13 proper books and records of accounts relating to the tax
14 credit award, in accordance with generally accepted
15 accounting principles consistently applied, and make those
16 books and records available for reasonable Department
17 inspection and audit, upon reasonable written request by
18 the Department, during the applicant's normal business
19 hours. Any documents or data made available to the
20 Department or received by the Department from the
21 applicant by any agent, employee, officer, or service
22 provider shall be deemed confidential and shall not
23 constitute public records to the extent that the documents
24 or data consist of commercial or financial information
25 regarding the operation by the applicant of any theater or
26 any accredited theater production or any recipient of any

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1 tax credit award under this Act.
2 Section 50-20. Application for certification of qualified
3music company. Any applicant that operates a qualified music
4company located in the State or is proposing to operate a
5qualified music company in the State may apply to the
6Department to have the qualified music company certified by
7the Department as a qualified music company.
8 Section 50-25. Review of applications for qualified music
9company certificates.
10 (a) The Department shall issue a qualified music company
11certificate to an applicant if it finds that a preponderance
12of the following conditions exists:
13 (1) the applicant is engaged directly or indirectly in
14 the production, distribution, and promotion of music;
15 (2) the applicant intends to make the expenditure in
16 the State required for certification of the qualified
17 music company;
18 (3) the applicant's qualified music company is
19 economically sound and will benefit the people of the
20 State of Illinois by increasing opportunities for
21 employment and will strengthen the economy of Illinois;
22 (4) the following requirements related to the
23 implementation of a diversity plan have been met:
24 (A) the applicant has filed with the Department a

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1 diversity plan outlining specific goals for hiring
2 Illinois labor expenditure eligible minority persons
3 and women, as defined in the Business Enterprise for
4 Minorities, Women, and Persons with Disabilities Act,
5 and for using vendors receiving certification under
6 the Business Enterprise for Minorities, Women, and
7 Persons with Disabilities Act;
8 (B) the Department has approved the plan as
9 meeting the requirements established by the Department
10 and verified that the applicant has met or made good
11 faith efforts in achieving those goals; and
12 (C) the Department has adopted any rules that are
13 necessary to ensure compliance with the provisions set
14 forth in this paragraph (4) and any rules that are
15 necessary to show that the applicant's plan reflects
16 the diversity of the population of this State;
17 (5) the applicant's qualified music company
18 application indicates whether the applicant intends to
19 participate in training, education, and recruitment
20 programs that are organized in cooperation with Illinois
21 colleges and universities, labor organizations, and the
22 holders of qualified music company certificates and are
23 designed to promote and encourage the training and hiring
24 of Illinois residents who represent the diversity of
25 Illinois; and
26 (6) the tax credit award will result in an overall

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1 positive impact to the State, as determined by the
2 Department using the best available data.
3 (b) If any of the provisions in this Section conflict with
4any existing collective bargaining agreements, the terms and
5conditions of those collective bargaining agreements shall
6control.
7 (c) The Department shall act expeditiously regarding
8approval of applications for qualified music companies so as
9to accommodate the operations and needs of those companies.
10 Section 50-30. Training programs for skills in critical
11demand. To accomplish the purposes of this Act, the Department
12may use the training programs provided under Section 605-800
13of the Department of Commerce and Economic Opportunity Law of
14the Civil Administrative Code of Illinois.
15 Section 50-35. Issuance of tax credit award certificate.
16 (a) In order to qualify for a tax credit award under this
17Act, an applicant must file an application for each qualified
18music company at each of the applicant's qualified facilities,
19on forms prescribed by the Department, providing information
20necessary to calculate the tax credit award and any additional
21information as reasonably required by the Department.
22 (b) Upon satisfactory review of the application, the
23Department shall issue a tax credit award certificate stating
24the amount of the tax credit award to which the applicant is

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1entitled for that tax year and shall contemporaneously notify
2the applicant and the Department of Revenue.
3 (c) For tax years beginning on or after January 1, 2025, a
4taxpayer who has been awarded a tax credit under paragraph (b)
5of this Section is entitled to a credit against the taxes
6imposed under subsections (a) and (b) of Section 201 of the
7Illinois Income Tax Act.
8 Section 50-40. Amount and payment of the tax credit award.
9 (a) For taxable years beginning on or after January 1,
102025, the Department may award tax credit awards to qualified
11music companies. The award may not exceed 10% of the Illinois
12labor expenditures for the State-certified production if the
13QMC payroll of the qualified music company for the taxable
14year does not exceed $150,000 or 15% of the Illinois labor
15expenditures for the State-certified production if the QMC
16payroll of the qualified music company for the taxable year
17exceeds $150,000, plus all of the following:
18 (1) an additional 15% of the Illinois labor
19 expenditures for the State-certified production generated
20 by the employment of Illinois residents in geographic
21 areas of high poverty or high unemployment in each tax
22 year, as determined by the Department; and
23 (2) an additional 7% of the Illinois labor
24 expenditures for the State-certified production generated
25 by the employment of individuals who are employed at a

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1 wage of no less than the general prevailing hourly rate as
2 paid for work of a similar character in the locality in
3 which the work is performed; and
4 (3) an additional 7% of the Illinois labor
5 expenditures for the State-certified production incurred
6 by a qualified music company and spent on post-production
7 sound recording for television or film work completed in
8 Illinois.
9 (b) To the extent that the base investment by a qualified
10music company is expended on a sound recording production of a
11resident copyright, the investor shall be allowed an
12additional 10% increase in the base investment rate.
13 (c) The aggregate amount of credits certified for all
14investors pursuant to this Section during any calendar year
15shall not exceed $2,000,000. No more than $200,000 in tax
16credits may be granted per calendar year for any single
17qualified music company.
18 (d) A business is eligible for participation in the
19program if the business meets all of the following criteria:
20 (1) The business is engaged directly or indirectly in
21 the production, distribution, and promotion of music.
22 (2) The business is approved by the Director of
23 Commerce and Economic Opportunity.
24 (e) Upon approval of a tax credit award under this Act, the
25Department shall issue a tax credit certificate to the
26applicant.

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1 Section 50-45. Qualified music program evaluation and
2reports.
3 (a) The Department's qualified music program tax credit
4award evaluation must include:
5 (1) an assessment of the effectiveness of the program
6 in creating and retaining new jobs in Illinois;
7 (2) an assessment of the revenue impact of the
8 program;
9 (3) in the discretion of the Department, a review of
10 the practices and experiences of other states or nations
11 with similar programs; and
12 (4) an assessment of the overall success of the
13 program.
14The Department may make a recommendation to extend, modify, or
15 not extend the program based on the evaluation.
16 (b) At the end of each fiscal quarter, the Department
17shall submit to the General Assembly a report that includes,
18without limitation:
19 (1) an assessment of the economic impact of the
20 program, including the number of jobs created and
21 retained, and whether the job positions are entry level,
22 management, vendor, or production related;
23 (2) the amount of qualified music company spending
24 brought to Illinois, including the amount of spending and
25 type of Illinois vendors hired in connection with a

HB4951 Enrolled- 204 -LRB103 38094 HLH 68226 b
1 qualified music company; and
2 (3) a determination of whether those receiving
3 qualifying Illinois labor expenditure salaries or wages
4 reflect the geographic, racial and ethnic, gender, and
5 income level diversity of the State of Illinois.
6 (c) At the end of each fiscal year, the Department shall
7submit to the General Assembly a report that includes, without
8limitation:
9 (1) the identification of each vendor that provided
10 goods or services that were included in a qualified music
11 company's Illinois spending;
12 (2) a statement of the amount paid to each identified
13 vendor by the qualified music program and whether the
14 vendor is a minority-owned or women-owned business as
15 defined in Section 2 of the Business Enterprise for
16 Minorities, Women, and Persons with Disabilities Act; and
17 (3) a description of the steps taken by the Department
18 to encourage qualified music company to use vendors who
19 are minority-owned or women-owned businesses.
20 Section 50-50. Program terms and conditions. Any
21documentary materials or data made available or received from
22an applicant by any agent or employee of the Department are
23confidential and are not public records to the extent that the
24materials or data consist of commercial or financial
25information regarding the operation of or the production of

HB4951 Enrolled- 205 -LRB103 38094 HLH 68226 b
1the applicant or recipient of any tax credit award under this
2Act.
3
ARTICLE 52.
4 Section 52-3. The Freedom of Information Act is amended by
5changing Section 7.5 as follows:
6 (5 ILCS 140/7.5)
7 (Text of Section before amendment by P.A. 103-472)
8 Sec. 7.5. Statutory exemptions. To the extent provided for
9by the statutes referenced below, the following shall be
10exempt from inspection and copying:
11 (a) All information determined to be confidential
12 under Section 4002 of the Technology Advancement and
13 Development Act.
14 (b) Library circulation and order records identifying
15 library users with specific materials under the Library
16 Records Confidentiality Act.
17 (c) Applications, related documents, and medical
18 records received by the Experimental Organ Transplantation
19 Procedures Board and any and all documents or other
20 records prepared by the Experimental Organ Transplantation
21 Procedures Board or its staff relating to applications it
22 has received.
23 (d) Information and records held by the Department of

HB4951 Enrolled- 206 -LRB103 38094 HLH 68226 b
1 Public Health and its authorized representatives relating
2 to known or suspected cases of sexually transmissible
3 disease or any information the disclosure of which is
4 restricted under the Illinois Sexually Transmissible
5 Disease Control Act.
6 (e) Information the disclosure of which is exempted
7 under Section 30 of the Radon Industry Licensing Act.
8 (f) Firm performance evaluations under Section 55 of
9 the Architectural, Engineering, and Land Surveying
10 Qualifications Based Selection Act.
11 (g) Information the disclosure of which is restricted
12 and exempted under Section 50 of the Illinois Prepaid
13 Tuition Act.
14 (h) Information the disclosure of which is exempted
15 under the State Officials and Employees Ethics Act, and
16 records of any lawfully created State or local inspector
17 general's office that would be exempt if created or
18 obtained by an Executive Inspector General's office under
19 that Act.
20 (i) Information contained in a local emergency energy
21 plan submitted to a municipality in accordance with a
22 local emergency energy plan ordinance that is adopted
23 under Section 11-21.5-5 of the Illinois Municipal Code.
24 (j) Information and data concerning the distribution
25 of surcharge moneys collected and remitted by carriers
26 under the Emergency Telephone System Act.

HB4951 Enrolled- 207 -LRB103 38094 HLH 68226 b
1 (k) Law enforcement officer identification information
2 or driver identification information compiled by a law
3 enforcement agency or the Department of Transportation
4 under Section 11-212 of the Illinois Vehicle Code.
5 (l) Records and information provided to a residential
6 health care facility resident sexual assault and death
7 review team or the Executive Council under the Abuse
8 Prevention Review Team Act.
9 (m) Information provided to the predatory lending
10 database created pursuant to Article 3 of the Residential
11 Real Property Disclosure Act, except to the extent
12 authorized under that Article.
13 (n) Defense budgets and petitions for certification of
14 compensation and expenses for court appointed trial
15 counsel as provided under Sections 10 and 15 of the
16 Capital Crimes Litigation Act (repealed). This subsection
17 (n) shall apply until the conclusion of the trial of the
18 case, even if the prosecution chooses not to pursue the
19 death penalty prior to trial or sentencing.
20 (o) Information that is prohibited from being
21 disclosed under Section 4 of the Illinois Health and
22 Hazardous Substances Registry Act.
23 (p) Security portions of system safety program plans,
24 investigation reports, surveys, schedules, lists, data, or
25 information compiled, collected, or prepared by or for the
26 Department of Transportation under Sections 2705-300 and

HB4951 Enrolled- 208 -LRB103 38094 HLH 68226 b
1 2705-616 of the Department of Transportation Law of the
2 Civil Administrative Code of Illinois, the Regional
3 Transportation Authority under Section 2.11 of the
4 Regional Transportation Authority Act, or the St. Clair
5 County Transit District under the Bi-State Transit Safety
6 Act (repealed).
7 (q) Information prohibited from being disclosed by the
8 Personnel Record Review Act.
9 (r) Information prohibited from being disclosed by the
10 Illinois School Student Records Act.
11 (s) Information the disclosure of which is restricted
12 under Section 5-108 of the Public Utilities Act.
13 (t) (Blank).
14 (u) Records and information provided to an independent
15 team of experts under the Developmental Disability and
16 Mental Health Safety Act (also known as Brian's Law).
17 (v) Names and information of people who have applied
18 for or received Firearm Owner's Identification Cards under
19 the Firearm Owners Identification Card Act or applied for
20 or received a concealed carry license under the Firearm
21 Concealed Carry Act, unless otherwise authorized by the
22 Firearm Concealed Carry Act; and databases under the
23 Firearm Concealed Carry Act, records of the Concealed
24 Carry Licensing Review Board under the Firearm Concealed
25 Carry Act, and law enforcement agency objections under the
26 Firearm Concealed Carry Act.

HB4951 Enrolled- 209 -LRB103 38094 HLH 68226 b
1 (v-5) Records of the Firearm Owner's Identification
2 Card Review Board that are exempted from disclosure under
3 Section 10 of the Firearm Owners Identification Card Act.
4 (w) Personally identifiable information which is
5 exempted from disclosure under subsection (g) of Section
6 19.1 of the Toll Highway Act.
7 (x) Information which is exempted from disclosure
8 under Section 5-1014.3 of the Counties Code or Section
9 8-11-21 of the Illinois Municipal Code.
10 (y) Confidential information under the Adult
11 Protective Services Act and its predecessor enabling
12 statute, the Elder Abuse and Neglect Act, including
13 information about the identity and administrative finding
14 against any caregiver of a verified and substantiated
15 decision of abuse, neglect, or financial exploitation of
16 an eligible adult maintained in the Registry established
17 under Section 7.5 of the Adult Protective Services Act.
18 (z) Records and information provided to a fatality
19 review team or the Illinois Fatality Review Team Advisory
20 Council under Section 15 of the Adult Protective Services
21 Act.
22 (aa) Information which is exempted from disclosure
23 under Section 2.37 of the Wildlife Code.
24 (bb) Information which is or was prohibited from
25 disclosure by the Juvenile Court Act of 1987.
26 (cc) Recordings made under the Law Enforcement

HB4951 Enrolled- 210 -LRB103 38094 HLH 68226 b
1 Officer-Worn Body Camera Act, except to the extent
2 authorized under that Act.
3 (dd) Information that is prohibited from being
4 disclosed under Section 45 of the Condominium and Common
5 Interest Community Ombudsperson Act.
6 (ee) Information that is exempted from disclosure
7 under Section 30.1 of the Pharmacy Practice Act.
8 (ff) Information that is exempted from disclosure
9 under the Revised Uniform Unclaimed Property Act.
10 (gg) Information that is prohibited from being
11 disclosed under Section 7-603.5 of the Illinois Vehicle
12 Code.
13 (hh) Records that are exempt from disclosure under
14 Section 1A-16.7 of the Election Code.
15 (ii) Information which is exempted from disclosure
16 under Section 2505-800 of the Department of Revenue Law of
17 the Civil Administrative Code of Illinois.
18 (jj) Information and reports that are required to be
19 submitted to the Department of Labor by registering day
20 and temporary labor service agencies but are exempt from
21 disclosure under subsection (a-1) of Section 45 of the Day
22 and Temporary Labor Services Act.
23 (kk) Information prohibited from disclosure under the
24 Seizure and Forfeiture Reporting Act.
25 (ll) Information the disclosure of which is restricted
26 and exempted under Section 5-30.8 of the Illinois Public

HB4951 Enrolled- 211 -LRB103 38094 HLH 68226 b
1 Aid Code.
2 (mm) Records that are exempt from disclosure under
3 Section 4.2 of the Crime Victims Compensation Act.
4 (nn) Information that is exempt from disclosure under
5 Section 70 of the Higher Education Student Assistance Act.
6 (oo) Communications, notes, records, and reports
7 arising out of a peer support counseling session
8 prohibited from disclosure under the First Responders
9 Suicide Prevention Act.
10 (pp) Names and all identifying information relating to
11 an employee of an emergency services provider or law
12 enforcement agency under the First Responders Suicide
13 Prevention Act.
14 (qq) Information and records held by the Department of
15 Public Health and its authorized representatives collected
16 under the Reproductive Health Act.
17 (rr) Information that is exempt from disclosure under
18 the Cannabis Regulation and Tax Act.
19 (ss) Data reported by an employer to the Department of
20 Human Rights pursuant to Section 2-108 of the Illinois
21 Human Rights Act.
22 (tt) Recordings made under the Children's Advocacy
23 Center Act, except to the extent authorized under that
24 Act.
25 (uu) Information that is exempt from disclosure under
26 Section 50 of the Sexual Assault Evidence Submission Act.

HB4951 Enrolled- 212 -LRB103 38094 HLH 68226 b
1 (vv) Information that is exempt from disclosure under
2 subsections (f) and (j) of Section 5-36 of the Illinois
3 Public Aid Code.
4 (ww) Information that is exempt from disclosure under
5 Section 16.8 of the State Treasurer Act.
6 (xx) Information that is exempt from disclosure or
7 information that shall not be made public under the
8 Illinois Insurance Code.
9 (yy) Information prohibited from being disclosed under
10 the Illinois Educational Labor Relations Act.
11 (zz) Information prohibited from being disclosed under
12 the Illinois Public Labor Relations Act.
13 (aaa) Information prohibited from being disclosed
14 under Section 1-167 of the Illinois Pension Code.
15 (bbb) Information that is prohibited from disclosure
16 by the Illinois Police Training Act and the Illinois State
17 Police Act.
18 (ccc) Records exempt from disclosure under Section
19 2605-304 of the Illinois State Police Law of the Civil
20 Administrative Code of Illinois.
21 (ddd) Information prohibited from being disclosed
22 under Section 35 of the Address Confidentiality for
23 Victims of Domestic Violence, Sexual Assault, Human
24 Trafficking, or Stalking Act.
25 (eee) Information prohibited from being disclosed
26 under subsection (b) of Section 75 of the Domestic

HB4951 Enrolled- 213 -LRB103 38094 HLH 68226 b
1 Violence Fatality Review Act.
2 (fff) Images from cameras under the Expressway Camera
3 Act. This subsection (fff) is inoperative on and after
4 July 1, 2025.
5 (ggg) Information prohibited from disclosure under
6 paragraph (3) of subsection (a) of Section 14 of the Nurse
7 Agency Licensing Act.
8 (hhh) Information submitted to the Illinois State
9 Police in an affidavit or application for an assault
10 weapon endorsement, assault weapon attachment endorsement,
11 .50 caliber rifle endorsement, or .50 caliber cartridge
12 endorsement under the Firearm Owners Identification Card
13 Act.
14 (iii) Data exempt from disclosure under Section 50 of
15 the School Safety Drill Act.
16 (jjj) (hhh) Information exempt from disclosure under
17 Section 30 of the Insurance Data Security Law.
18 (kkk) (iii) Confidential business information
19 prohibited from disclosure under Section 45 of the Paint
20 Stewardship Act.
21 (lll) (Reserved).
22 (mmm) (iii) Information prohibited from being
23 disclosed under subsection (e) of Section 1-129 of the
24 Illinois Power Agency Act.
25 (nnn) Materials received by the Department of Commerce
26 and Economic Opportunity that are confidential under the

HB4951 Enrolled- 214 -LRB103 38094 HLH 68226 b
1 Music and Musicians Tax Credit and Jobs Act.
2(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
3102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
48-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
5102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
66-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
7eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23;
8revised 1-2-24.)
9 (Text of Section after amendment by P.A. 103-472)
10 Sec. 7.5. Statutory exemptions. To the extent provided for
11by the statutes referenced below, the following shall be
12exempt from inspection and copying:
13 (a) All information determined to be confidential
14 under Section 4002 of the Technology Advancement and
15 Development Act.
16 (b) Library circulation and order records identifying
17 library users with specific materials under the Library
18 Records Confidentiality Act.
19 (c) Applications, related documents, and medical
20 records received by the Experimental Organ Transplantation
21 Procedures Board and any and all documents or other
22 records prepared by the Experimental Organ Transplantation
23 Procedures Board or its staff relating to applications it
24 has received.
25 (d) Information and records held by the Department of

HB4951 Enrolled- 215 -LRB103 38094 HLH 68226 b
1 Public Health and its authorized representatives relating
2 to known or suspected cases of sexually transmissible
3 disease or any information the disclosure of which is
4 restricted under the Illinois Sexually Transmissible
5 Disease Control Act.
6 (e) Information the disclosure of which is exempted
7 under Section 30 of the Radon Industry Licensing Act.
8 (f) Firm performance evaluations under Section 55 of
9 the Architectural, Engineering, and Land Surveying
10 Qualifications Based Selection Act.
11 (g) Information the disclosure of which is restricted
12 and exempted under Section 50 of the Illinois Prepaid
13 Tuition Act.
14 (h) Information the disclosure of which is exempted
15 under the State Officials and Employees Ethics Act, and
16 records of any lawfully created State or local inspector
17 general's office that would be exempt if created or
18 obtained by an Executive Inspector General's office under
19 that Act.
20 (i) Information contained in a local emergency energy
21 plan submitted to a municipality in accordance with a
22 local emergency energy plan ordinance that is adopted
23 under Section 11-21.5-5 of the Illinois Municipal Code.
24 (j) Information and data concerning the distribution
25 of surcharge moneys collected and remitted by carriers
26 under the Emergency Telephone System Act.

HB4951 Enrolled- 216 -LRB103 38094 HLH 68226 b
1 (k) Law enforcement officer identification information
2 or driver identification information compiled by a law
3 enforcement agency or the Department of Transportation
4 under Section 11-212 of the Illinois Vehicle Code.
5 (l) Records and information provided to a residential
6 health care facility resident sexual assault and death
7 review team or the Executive Council under the Abuse
8 Prevention Review Team Act.
9 (m) Information provided to the predatory lending
10 database created pursuant to Article 3 of the Residential
11 Real Property Disclosure Act, except to the extent
12 authorized under that Article.
13 (n) Defense budgets and petitions for certification of
14 compensation and expenses for court appointed trial
15 counsel as provided under Sections 10 and 15 of the
16 Capital Crimes Litigation Act (repealed). This subsection
17 (n) shall apply until the conclusion of the trial of the
18 case, even if the prosecution chooses not to pursue the
19 death penalty prior to trial or sentencing.
20 (o) Information that is prohibited from being
21 disclosed under Section 4 of the Illinois Health and
22 Hazardous Substances Registry Act.
23 (p) Security portions of system safety program plans,
24 investigation reports, surveys, schedules, lists, data, or
25 information compiled, collected, or prepared by or for the
26 Department of Transportation under Sections 2705-300 and

HB4951 Enrolled- 217 -LRB103 38094 HLH 68226 b
1 2705-616 of the Department of Transportation Law of the
2 Civil Administrative Code of Illinois, the Regional
3 Transportation Authority under Section 2.11 of the
4 Regional Transportation Authority Act, or the St. Clair
5 County Transit District under the Bi-State Transit Safety
6 Act (repealed).
7 (q) Information prohibited from being disclosed by the
8 Personnel Record Review Act.
9 (r) Information prohibited from being disclosed by the
10 Illinois School Student Records Act.
11 (s) Information the disclosure of which is restricted
12 under Section 5-108 of the Public Utilities Act.
13 (t) (Blank).
14 (u) Records and information provided to an independent
15 team of experts under the Developmental Disability and
16 Mental Health Safety Act (also known as Brian's Law).
17 (v) Names and information of people who have applied
18 for or received Firearm Owner's Identification Cards under
19 the Firearm Owners Identification Card Act or applied for
20 or received a concealed carry license under the Firearm
21 Concealed Carry Act, unless otherwise authorized by the
22 Firearm Concealed Carry Act; and databases under the
23 Firearm Concealed Carry Act, records of the Concealed
24 Carry Licensing Review Board under the Firearm Concealed
25 Carry Act, and law enforcement agency objections under the
26 Firearm Concealed Carry Act.

HB4951 Enrolled- 218 -LRB103 38094 HLH 68226 b
1 (v-5) Records of the Firearm Owner's Identification
2 Card Review Board that are exempted from disclosure under
3 Section 10 of the Firearm Owners Identification Card Act.
4 (w) Personally identifiable information which is
5 exempted from disclosure under subsection (g) of Section
6 19.1 of the Toll Highway Act.
7 (x) Information which is exempted from disclosure
8 under Section 5-1014.3 of the Counties Code or Section
9 8-11-21 of the Illinois Municipal Code.
10 (y) Confidential information under the Adult
11 Protective Services Act and its predecessor enabling
12 statute, the Elder Abuse and Neglect Act, including
13 information about the identity and administrative finding
14 against any caregiver of a verified and substantiated
15 decision of abuse, neglect, or financial exploitation of
16 an eligible adult maintained in the Registry established
17 under Section 7.5 of the Adult Protective Services Act.
18 (z) Records and information provided to a fatality
19 review team or the Illinois Fatality Review Team Advisory
20 Council under Section 15 of the Adult Protective Services
21 Act.
22 (aa) Information which is exempted from disclosure
23 under Section 2.37 of the Wildlife Code.
24 (bb) Information which is or was prohibited from
25 disclosure by the Juvenile Court Act of 1987.
26 (cc) Recordings made under the Law Enforcement

HB4951 Enrolled- 219 -LRB103 38094 HLH 68226 b
1 Officer-Worn Body Camera Act, except to the extent
2 authorized under that Act.
3 (dd) Information that is prohibited from being
4 disclosed under Section 45 of the Condominium and Common
5 Interest Community Ombudsperson Act.
6 (ee) Information that is exempted from disclosure
7 under Section 30.1 of the Pharmacy Practice Act.
8 (ff) Information that is exempted from disclosure
9 under the Revised Uniform Unclaimed Property Act.
10 (gg) Information that is prohibited from being
11 disclosed under Section 7-603.5 of the Illinois Vehicle
12 Code.
13 (hh) Records that are exempt from disclosure under
14 Section 1A-16.7 of the Election Code.
15 (ii) Information which is exempted from disclosure
16 under Section 2505-800 of the Department of Revenue Law of
17 the Civil Administrative Code of Illinois.
18 (jj) Information and reports that are required to be
19 submitted to the Department of Labor by registering day
20 and temporary labor service agencies but are exempt from
21 disclosure under subsection (a-1) of Section 45 of the Day
22 and Temporary Labor Services Act.
23 (kk) Information prohibited from disclosure under the
24 Seizure and Forfeiture Reporting Act.
25 (ll) Information the disclosure of which is restricted
26 and exempted under Section 5-30.8 of the Illinois Public

HB4951 Enrolled- 220 -LRB103 38094 HLH 68226 b
1 Aid Code.
2 (mm) Records that are exempt from disclosure under
3 Section 4.2 of the Crime Victims Compensation Act.
4 (nn) Information that is exempt from disclosure under
5 Section 70 of the Higher Education Student Assistance Act.
6 (oo) Communications, notes, records, and reports
7 arising out of a peer support counseling session
8 prohibited from disclosure under the First Responders
9 Suicide Prevention Act.
10 (pp) Names and all identifying information relating to
11 an employee of an emergency services provider or law
12 enforcement agency under the First Responders Suicide
13 Prevention Act.
14 (qq) Information and records held by the Department of
15 Public Health and its authorized representatives collected
16 under the Reproductive Health Act.
17 (rr) Information that is exempt from disclosure under
18 the Cannabis Regulation and Tax Act.
19 (ss) Data reported by an employer to the Department of
20 Human Rights pursuant to Section 2-108 of the Illinois
21 Human Rights Act.
22 (tt) Recordings made under the Children's Advocacy
23 Center Act, except to the extent authorized under that
24 Act.
25 (uu) Information that is exempt from disclosure under
26 Section 50 of the Sexual Assault Evidence Submission Act.

HB4951 Enrolled- 221 -LRB103 38094 HLH 68226 b
1 (vv) Information that is exempt from disclosure under
2 subsections (f) and (j) of Section 5-36 of the Illinois
3 Public Aid Code.
4 (ww) Information that is exempt from disclosure under
5 Section 16.8 of the State Treasurer Act.
6 (xx) Information that is exempt from disclosure or
7 information that shall not be made public under the
8 Illinois Insurance Code.
9 (yy) Information prohibited from being disclosed under
10 the Illinois Educational Labor Relations Act.
11 (zz) Information prohibited from being disclosed under
12 the Illinois Public Labor Relations Act.
13 (aaa) Information prohibited from being disclosed
14 under Section 1-167 of the Illinois Pension Code.
15 (bbb) Information that is prohibited from disclosure
16 by the Illinois Police Training Act and the Illinois State
17 Police Act.
18 (ccc) Records exempt from disclosure under Section
19 2605-304 of the Illinois State Police Law of the Civil
20 Administrative Code of Illinois.
21 (ddd) Information prohibited from being disclosed
22 under Section 35 of the Address Confidentiality for
23 Victims of Domestic Violence, Sexual Assault, Human
24 Trafficking, or Stalking Act.
25 (eee) Information prohibited from being disclosed
26 under subsection (b) of Section 75 of the Domestic

HB4951 Enrolled- 222 -LRB103 38094 HLH 68226 b
1 Violence Fatality Review Act.
2 (fff) Images from cameras under the Expressway Camera
3 Act. This subsection (fff) is inoperative on and after
4 July 1, 2025.
5 (ggg) Information prohibited from disclosure under
6 paragraph (3) of subsection (a) of Section 14 of the Nurse
7 Agency Licensing Act.
8 (hhh) Information submitted to the Illinois State
9 Police in an affidavit or application for an assault
10 weapon endorsement, assault weapon attachment endorsement,
11 .50 caliber rifle endorsement, or .50 caliber cartridge
12 endorsement under the Firearm Owners Identification Card
13 Act.
14 (iii) Data exempt from disclosure under Section 50 of
15 the School Safety Drill Act.
16 (jjj) (hhh) Information exempt from disclosure under
17 Section 30 of the Insurance Data Security Law.
18 (kkk) (iii) Confidential business information
19 prohibited from disclosure under Section 45 of the Paint
20 Stewardship Act.
21 (lll) (iii) Data exempt from disclosure under Section
22 2-3.196 of the School Code.
23 (mmm) (iii) Information prohibited from being
24 disclosed under subsection (e) of Section 1-129 of the
25 Illinois Power Agency Act.
26 (nnn) Materials received by the Department of Commerce

HB4951 Enrolled- 223 -LRB103 38094 HLH 68226 b
1 and Economic Opportunity that are confidential under the
2 Music and Musicians Tax Credit and Jobs Act.
3(Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22;
4102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff.
58-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22;
6102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff.
76-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372,
8eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23;
9103-580, eff. 12-8-23; revised 1-2-24.)
10 Section 52-5. The Illinois Income Tax Act is amended by
11adding Section 241 as follows:
12 (35 ILCS 5/241 new)
13 Sec. 241. Music and Musicians Tax Credits and Jobs Act.
14Taxpayers who have been awarded a credit under the Music and
15Musicians Tax Credits and Jobs Act are entitled to a credit
16against the taxes imposed by subsections (a) and (b) of
17Section 201 of this Act in an amount determined by the
18Department of Commerce and Economic Opportunity under that
19Act. The credit shall be claimed in the taxable year in which
20the tax credit award certificate is issued, and the
21certificate shall be attached to the return. If the taxpayer
22is a partnership or Subchapter S corporation, the credit shall
23be allowed to the partners or shareholders in accordance with
24the provisions of Section 251.

HB4951 Enrolled- 224 -LRB103 38094 HLH 68226 b
1 The credit may not reduce the taxpayer's liability to less
2than zero. If the amount of the credit exceeds the tax
3liability for the year, the excess may be carried forward and
4applied to the tax liability of the 5 taxable years following
5the excess credit year. The credit shall be applied to the
6earliest year for which there is a tax liability. If there are
7credits from more than one tax year that are available to
8offset a liability, the earlier credit shall be applied first.
9
ARTICLE 55.
10 Section 55-5. The Illinois Income Tax Act is amended by
11changing Section 216 as follows:
12 (35 ILCS 5/216)
13 Sec. 216. Credit for wages paid to returning citizens
14ex-felons.
15 (a) For each taxable year beginning on or after January 1,
162007, each taxpayer is entitled to a credit against the tax
17imposed by subsections (a) and (b) of Section 201 of this Act
18in an amount equal to 5% of qualified wages paid by the
19taxpayer during the taxable year to one or more Illinois
20residents who are qualified returning citizens ex-offenders.
21For each taxable year beginning on or after January 1, 2025,
22each taxpayer is entitled to a credit against the tax imposed
23by subsections (a) and (b) of Section 201 of this Act in an

HB4951 Enrolled- 225 -LRB103 38094 HLH 68226 b
1amount equal to 15% of qualified wages paid by the taxpayer
2during the taxable year to one or more Illinois residents who
3are qualified returning citizens. The total credit allowed to
4a taxpayer with respect to each qualified returning citizen
5ex-offender may not exceed $1,500 for all taxable years ending
6on or before December 31, 2024. For taxable years ending on or
7after December 31, 2025, the total credit allowed to a
8taxpayer with respect to each qualified returning citizen may
9not exceed $7,500. For taxable years ending on or after
10December 31, 2025, the total amount in credit that may be
11awarded under this Section may not exceed $1,000,000 per
12taxable year. For taxable years ending before December 31,
132023, for partners, shareholders of Subchapter S corporations,
14and owners of limited liability companies, if the liability
15company is treated as a partnership for purposes of federal
16and State income taxation, there shall be allowed a credit
17under this Section to be determined in accordance with the
18determination of income and distributive share of income under
19Sections 702 and 704 and Subchapter S of the Internal Revenue
20Code. For taxable years ending on or after December 31, 2023,
21partners and shareholders of subchapter S corporations are
22entitled to a credit under this Section as provided in Section
23251.
24 (b) For purposes of this Section, "qualified wages":
25 (1) includes only wages that are subject to federal
26 unemployment tax under Section 3306 of the Internal

HB4951 Enrolled- 226 -LRB103 38094 HLH 68226 b
1 Revenue Code, without regard to any dollar limitation
2 contained in that Section;
3 (2) does not include any amounts paid or incurred by
4 an employer for any period to any qualified returning
5 citizen ex-offender for whom the employer receives
6 federally funded payments for on-the-job training of that
7 qualified returning citizen ex-offender for that period;
8 and
9 (3) includes only wages attributable to service
10 rendered during the one-year period beginning with the day
11 the qualified returning citizen ex-offender begins work
12 for the employer.
13 If the taxpayer has received any payment from a program
14established under Section 482(e)(1) of the federal Social
15Security Act with respect to a qualified returning citizen
16ex-offender, then, for purposes of calculating the credit
17under this Section, the amount of the qualified wages paid to
18that qualified ex-offender must be reduced by the amount of
19the payment.
20 (c) For purposes of this Section, "qualified returning
21citizen ex-offender" means any person who:
22 (1) has been convicted of a crime in this State or of
23 an offense in any other jurisdiction, not including any
24 offense or attempted offense that would subject a person
25 to registration under the Sex Offender Registration Act;
26 (2) was sentenced to a period of incarceration in an

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1 Illinois adult correctional center; and
2 (3) was hired by the taxpayer within 3 years after
3 being released from an Illinois adult correctional center
4 if the credit is claimed for a taxable year beginning on or
5 before January 1, 2024, or was hired by the taxpayer
6 within 5 years after being released from an Illinois adult
7 correctional center if the credit is claimed for a taxable
8 year beginning on or after January 1, 2025.
9 (d) In no event shall a credit under this Section reduce
10the taxpayer's liability to less than zero. If the amount of
11the credit exceeds the tax liability for the year, the excess
12may be carried forward and applied to the tax liability of the
135 taxable years following the excess credit year. The tax
14credit shall be applied to the earliest year for which there is
15a tax liability. If there are credits for more than one year
16that are available to offset a liability, the earlier credit
17shall be applied first.
18 (e) This Section is exempt from the provisions of Section
19250.
20(Source: P.A. 103-396, eff. 1-1-24.)
21
ARTICLE 60.
22 Section 60-5. The Illinois Income Tax Act is amended by
23changing Section 234 as follows:

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1 (35 ILCS 5/234)
2 Sec. 234. Volunteer emergency workers.
3 (a) For taxable years beginning on or after January 1,
42023 and beginning prior to January 1, 2028, each individual
5who (i) serves as a volunteer emergency worker for at least 9
6months during the taxable year and (ii) does not receive
7compensation for his or her services as a volunteer emergency
8worker of more than $5,000 for the taxable year may apply to
9the Department for a credit against the taxes imposed by
10subsections (a) and (b) of Section 201. The amount of the
11credit shall be $500 per eligible individual. If a taxpayer
12described in this subsection (a) is a volunteer member of a
13county or municipal emergency services and disaster agency
14under the Illinois Emergency Management Agency Act, then the
15taxpayer must serve as a volunteer emergency worker with the
16county or municipal emergency services and disaster agency for
17at least 100 hours during the taxable year. The aggregate
18amount of all tax credits awarded by the Department under this
19Section in any calendar year may not exceed $5,000,000.
20Credits shall be awarded on a first-come first-served basis.
21 (b) A credit under this Section may not reduce a
22taxpayer's liability to less than zero.
23 (c) By January 24 of each year, the Office of the State
24Fire Marshal shall provide the Department of Revenue an
25electronic file with the names of volunteer emergency workers,
26other than volunteer emergency workers who are volunteer

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1members of a county or municipal emergency services and
2disaster agency under the Illinois Emergency Management Agency
3Act, who (i) volunteered for at least 9 months during the
4immediately preceding calendar year, (ii) did not receive
5compensation for their services as a volunteer emergency
6worker of more than $5,000 during the immediately preceding
7calendar year, and (iii) are registered with the Office of the
8State Fire Marshal as of January 12 of the current year as
9meeting the requirements of items (i) and (ii) for the
10immediately preceding calendar year. The chief of the fire
11department, fire protection district, or fire protection
12association shall be responsible for notifying the State Fire
13Marshal of the volunteer emergency workers who met the
14requirements of items (i) and (ii) during the immediately
15preceding calendar year by January 12 of the current year.
16Notification shall be required in the format required by the
17State Fire Marshal. The chief of the fire department, fire
18protection district, or fire protection association shall be
19responsible for the verification and accuracy of their
20submission to the State Fire Marshal under this subsection.
21 By January 24, 2025, and by January 24 of each year
22thereafter, the Illinois Emergency Management Agency and
23Office of Homeland Security shall provide the Department of
24Revenue an electronic file with the names of volunteer
25emergency workers who (A) volunteered with a county or
26municipal emergency services and disaster agency pursuant to

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1the Illinois Emergency Management Agency Act for at least 9
2months during the immediately preceding calendar year, (B) did
3not receive compensation for their services as a volunteer
4emergency worker of more than $5,000 during the immediately
5preceding calendar year, (C) volunteered with a county or
6municipal emergency services and disaster agency pursuant to
7the Illinois Emergency Management Agency Act for at least 100
8hours during the immediately preceding calendar year, and (D)
9are registered with the Illinois Emergency Management Agency
10and Office of Homeland Security as of January 12 of the current
11year as meeting the requirements of items (A), (B), and (C) for
12the immediately preceding calendar year. The coordinator of
13the emergency services and disaster agency shall be
14responsible for notifying the Illinois Emergency Management
15Agency and Office of Homeland Security of the volunteer
16emergency workers who met the requirements of items (A), (B),
17and (C) during the immediately preceding calendar year by
18January 12 of the current year. Notification shall be in the
19format required by the Illinois Emergency Management Agency
20and Office of Homeland Security. The coordinator of the
21emergency services and disaster agency shall be responsible
22for the verification and accuracy of their submission to the
23Illinois Emergency Management Agency and Office of Homeland
24Security under this subsection.
25 (d) As used in this Section, "volunteer emergency worker"
26means a person who serves as a member, other than on a

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1full-time career basis, of a fire department, fire protection
2district, or fire protection association that has a Fire
3Department Identification Number issued by the Office of the
4State Fire Marshal and who does not serve as a member on a
5full-time career basis for another fire department, fire
6protection district, fire protection association, or
7governmental entity. For taxable years beginning on or after
8January 1, 2024, "volunteer emergency worker" also means a
9person who is a volunteer member of a county or municipal
10emergency services and disaster agency pursuant to the
11Illinois Emergency Management Agency Act.
12 (e) The Department shall adopt rules to implement and
13administer this Section, including rules concerning
14applications for the tax credit.
15(Source: P.A. 103-9, eff. 6-7-23.)
16
ARTICLE 65.
17 Section 65-5. The Hotel Operators' Occupation Tax Act is
18amended by changing Sections 2, 3, 4, 5, and 6 and by adding
19Sections 3-2 and 3-3 as follows:
20 (35 ILCS 145/2) (from Ch. 120, par. 481b.32)
21 Sec. 2. Definitions. As used in this Act, unless the
22context otherwise requires:
23 (1) "Hotel" means any building or buildings in which the

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1public may, for a consideration, obtain living quarters,
2sleeping or housekeeping accommodations. The term includes,
3but is not limited to, inns, motels, tourist homes or courts,
4lodging houses, rooming houses and apartment houses, retreat
5centers, conference centers, and hunting lodges. For the
6purposes of re-renters of hotel rooms only, "hotel" does not
7include a short-term rental.
8 (2) "Operator" means any person engaged in the business of
9renting, leasing, or letting rooms in operating a hotel.
10 (3) "Occupancy" means the use or possession, or the right
11to the use or possession, of any room or rooms in a hotel for
12any purpose, or the right to the use or possession of the
13furnishings or to the services and accommodations accompanying
14the use and possession of the room or rooms.
15 (4) "Room" or "rooms" means any living quarters, sleeping
16or housekeeping accommodations.
17 (5) "Permanent resident" means any person who occupied or
18has the right to occupy any room or rooms, regardless of
19whether or not it is the same room or rooms, in a hotel for at
20least 30 consecutive days.
21 (6) "Rent" or "rental" means the consideration received
22for occupancy, valued in money, whether received in money or
23otherwise, including all receipts, cash, credits and property
24or services of any kind or nature. "Rent" or "rental" includes
25any fee, charge, or commission received from a guest by a
26re-renter of hotel rooms specifically in connection with the

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1re-rental of hotel rooms, but does not include any fee,
2charge, or commission received from a short-term rental by a
3hosting platform.
4 (7) "Department" means the Department of Revenue.
5 (8) "Person" means any natural individual, firm,
6partnership, association, joint stock company, joint
7adventure, public or private corporation, limited liability
8company, or a receiver, executor, trustee, guardian or other
9representative appointed by order of any court.
10 (9) "Re-renter of hotel rooms" means a person who is not
11employed by the hotel operator but who, either directly or
12indirectly, through agreements or arrangements with third
13parties, collects or processes the payment of rent for a hotel
14room located in this State and (i) obtains the right or
15authority to grant control of, access to, or occupancy of a
16hotel room in this State to a guest of the hotel or (ii)
17facilitates the booking of a hotel room located in this State.
18A person who obtains those rights or authorities is not
19considered a re-renter of a hotel room if the person operates
20under a shared hotel brand with the operator.
21 (10) "Hosting platform" or "platform" means a person who
22provides an online application, software, website, or system
23through which a short-term rental located in this State is
24advertised or held out to the public as available to rent for
25occupancy. For purposes of this definition, "short-term
26rental" means an owner-occupied, tenant-occupied, or

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1non-owner-occupied dwelling, including, but not limited to, an
2apartment, house, cottage, or condominium, located in this
3State, where: (i) at least one room in the dwelling is rented
4to an occupant for a period of less than 30 consecutive days;
5and (ii) all accommodations are reserved in advance; provided,
6however, that a dwelling shall be considered a single room if
7rented as such.
8 (11) "Shared hotel brand" means an identifying trademark
9that a hotel operator is expressly licensed to operate under
10in accordance with the terms of a hotel franchise or
11management agreement
12(Source: P.A. 100-213, eff. 8-18-17.)
13 (35 ILCS 145/3) (from Ch. 120, par. 481b.33)
14 Sec. 3. Rate; exemptions.
15 (a) A tax is imposed upon hotel operators persons engaged
16in the business of renting, leasing or letting rooms in a hotel
17at the rate of 5% of 94% of the gross rental receipts from
18engaging in business as a hotel operator such renting, leasing
19or letting, excluding, however, from gross rental receipts,
20the proceeds of such renting, leasing or letting hotel rooms
21to permanent residents of a that hotel and proceeds from the
22tax imposed under subsection (c) of Section 13 of the
23Metropolitan Pier and Exposition Authority Act.
24 (b) There shall be imposed an additional tax upon hotel
25operators persons engaged in the business of renting, leasing

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1or letting rooms in a hotel at the rate of 1% of 94% of the
2gross rental receipts received by the hotel operator from
3engaging in business as a hotel operator from such renting,
4leasing or letting, excluding, however, from gross rental
5receipts, the proceeds of such renting, leasing or letting to
6permanent residents of that hotel and proceeds from the tax
7imposed under subsection (c) of Section 13 of the Metropolitan
8Pier and Exposition Authority Act.
9 (b-5) Beginning on July 1, 2024, if the renting, leasing,
10or letting of a hotel room is done through a re-renter of hotel
11rooms, then, subject to the provisions of Sections 3-2 and
123-3, the re-renter is the hotel operator for the purposes of
13the taxes under subsections (a) and (b). If the re-renter is
14headquartered outside of this State and has no presence in
15this State other than its business as a re-renter, conducted
16remotely, then, subject to the provisions of Sections 3-2 and
173-3, such re-renter is the hotel operator for the purposes of
18the taxes under subsections (a) and (b) if it meets one of the
19following thresholds:
20 (1) the cumulative gross receipts from rentals in
21 Illinois by the re-renter of hotel rooms are $100,000 or
22 more; or
23 (2) the re-renter of hotel rooms cumulatively enters
24 into 200 or more separate transactions for rentals in
25 Illinois.
26 A re-renter of hotel rooms who is headquartered outside of

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1this State and has no presence in this State other than its
2business as a re-renter, conducted remotely, shall determine
3on a quarterly basis, ending on the last day of March, June,
4September, and December, whether he or she meets the threshold
5of either paragraph (1) or (2) of this subsection (b-5) for the
6preceding 12-month period. If such re-renter of hotel rooms
7meets the threshold of either paragraph (1) or (2) for a
812-month period, he or she is subject to tax under this Act and
9is required to remit the tax imposed under this Act and file
10returns for the 12-month period beginning on the first day of
11the next month after he or she determines that he or she meets
12the threshold of paragraph (1) or (2). At the end of that
1312-month period, such re-renter of hotel rooms shall determine
14whether he or she continued to meet the threshold of either
15paragraph (1) or (2) during the preceding 12-month period. If
16he or she met the threshold in either paragraph (1) or (2) for
17the preceding 12-month period, he or she is a hotel operator in
18this State and is required to remit the tax imposed under this
19Act and file returns for the subsequent 12-month period. If,
20at the end of a 12-month period during which such re-renter is
21required to remit the tax imposed under this Act, the
22re-renter determines that he or she did not meet the threshold
23in either paragraph (1) or (2) during the preceding 12-month
24period, he or she shall subsequently determine on a quarterly
25basis, ending on the last day of March, June, September, and
26December, whether he or she meets the threshold of either

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1paragraph (1) or (2) for the preceding 12-month period.
2 (c) No funds received pursuant to this Act shall be used to
3advertise for or otherwise promote new competition in the
4hotel business.
5 (d) However, such tax is not imposed upon the privilege of
6engaging in any business in Interstate Commerce or otherwise,
7which business may not, under the Constitution and Statutes of
8the United States, be made the subject of taxation by this
9State. In addition, the tax is not imposed upon gross rental
10receipts for which the hotel operator is prohibited from
11obtaining reimbursement for the tax from the customer by
12reason of a federal treaty.
13 (d-5) On and after July 1, 2017, the tax imposed by this
14Act shall not apply to gross rental receipts received by an
15entity that is organized and operated exclusively for
16religious purposes and possesses an active Exemption
17Identification Number issued by the Department pursuant to the
18Retailers' Occupation Tax Act when acting as a hotel operator
19renting, leasing, or letting rooms:
20 (1) in furtherance of the purposes for which it is
21 organized; or
22 (2) to entities that (i) are organized and operated
23 exclusively for religious purposes, (ii) possess an active
24 Exemption Identification Number issued by the Department
25 pursuant to the Retailers' Occupation Tax Act, and (iii)
26 rent the rooms in furtherance of the purposes for which

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1 they are organized.
2 No gross rental receipts are exempt under paragraph (2) of
3this subsection (d-5) unless the hotel operator obtains the
4active Exemption Identification Number from the exclusively
5religious entity to whom it is renting and maintains that
6number in its books and records. Gross rental receipts from
7all rentals other than those described in items (1) or (2) of
8this subsection (d-5) are subject to the tax imposed by this
9Act unless otherwise exempt under this Act.
10 This subsection (d-5) is exempt from the sunset provisions
11of Section 3-5 of this Act.
12 (d-10) On and after July 1, 2023, the tax imposed by this
13Act shall not apply to gross rental receipts received from the
14renting, leasing, or letting of rooms to an entity that is
15organized and operated exclusively by an organization
16chartered by the United States Congress for the purpose of
17providing disaster relief and that possesses an active
18Exemption Identification Number issued by the Department
19pursuant to the Retailers' Occupation Tax Act if the renting,
20leasing, or letting of the rooms is in furtherance of the
21purposes for which the exempt organization is organized. This
22subsection (d-10) is exempt from the sunset provisions of
23Section 3-5 of this Act.
24 (e) Persons subject to the tax imposed by this Act may
25reimburse themselves for their tax liability under this Act by
26separately stating such tax as an additional charge, which

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1charge may be stated in combination, in a single amount, with
2any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
3Illinois Municipal Code, and Section 25.05-10 of "An Act to
4revise the law in relation to counties".
5 (f) If any hotel operator collects an amount (however
6designated) which purports to reimburse such operator for
7hotel operators' occupation tax liability measured by receipts
8which are not subject to hotel operators' occupation tax, or
9if any hotel operator, in collecting an amount (however
10designated) which purports to reimburse such operator for
11hotel operators' occupation tax liability measured by receipts
12which are subject to tax under this Act, collects more from the
13guest or re-renter customer than the operators' hotel
14operators' occupation tax liability in the transaction is, the
15guest or re-renter, as applicable, customer shall have a legal
16right to claim a refund of such amount from such operator.
17However, if such amount is not refunded to the guest or
18re-renter, as applicable, customer for any reason, the hotel
19operator