Bill Text: IL SB0350 | 2013-2014 | 98th General Assembly | Amended
Bill Title: Amends the Economic Development for a Growing Economy Tax Credit Act. Makes a technical change in a Section concerning the purpose of the Act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2015-01-13 - Session Sine Die [SB0350 Detail]
Download: Illinois-2013-SB0350-Amended.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO SENATE BILL 350
| ||||||
2 | AMENDMENT NO. ______. Amend Senate Bill 350 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The State Revenue Sharing Act is amended by | ||||||
5 | changing Section 1 as follows:
| ||||||
6 | (30 ILCS 115/1) (from Ch. 85, par. 611)
| ||||||
7 | Sec. 1. Local Government Distributive Fund. | ||||||
8 | (a) Through June 30, 1994, as
soon as may be after the | ||||||
9 | first day of each month the Department of Revenue
shall certify | ||||||
10 | to the Treasurer an amount equal to 1/12 of the net revenue
| ||||||
11 | realized from the tax imposed by subsections (a) and (b) of | ||||||
12 | Section 201 of the
Illinois Income Tax Act during the preceding | ||||||
13 | month. | ||||||
14 | Beginning July 1, 1994,
and continuing through June 30, | ||||||
15 | 1995, as soon as may be after the first day of
each month, the | ||||||
16 | Department of Revenue shall certify to the Treasurer an amount
|
| |||||||
| |||||||
1 | equal to 1/11 of the net revenue realized from the tax imposed | ||||||
2 | by subsections
(a) and (b) of Section 201 of the Illinois | ||||||
3 | Income Tax Act during the preceding
month. | ||||||
4 | Beginning July 1, 1995 and continuing through January 31, | ||||||
5 | 2011 , as soon as may be after the first day of each
month, the | ||||||
6 | Department of Revenue shall certify to the Treasurer an amount | ||||||
7 | equal
to 1/10 of the net revenue realized from the tax imposed | ||||||
8 | by subsections (a) and
(b) of Section 201 of the Illinois | ||||||
9 | Income Tax Act during the preceding month. | ||||||
10 | For the purpose of this subsection (a), net
Net revenue | ||||||
11 | realized for a month shall be defined as the revenue from the | ||||||
12 | tax
imposed by subsections (a) and (b) of Section 201 of the | ||||||
13 | Illinois Income Tax
Act which is deposited in the General | ||||||
14 | Revenue Fund, the Education Assistance
Fund and the Income Tax | ||||||
15 | Surcharge Local Government Distributive Fund during the
month | ||||||
16 | minus the amount paid out of the General Revenue Fund in State | ||||||
17 | warrants
during that same month as refunds to taxpayers for | ||||||
18 | overpayment of liability
under the tax imposed by subsections | ||||||
19 | (a) and (b) of Section 201 of the Illinois
Income Tax Act. | ||||||
20 | Upon receipt of a such certification under this subsection | ||||||
21 | (a) , the Treasurer shall
transfer from the General Revenue Fund | ||||||
22 | to a special fund in the State treasury,
to be known as the | ||||||
23 | "Local Government Distributive Fund", the amount shown on
such | ||||||
24 | certification.
| ||||||
25 | (b) Beginning February 1, 2011, for all payments collected | ||||||
26 | on or after December 31, 2010, the Treasurer shall transfer |
| |||||||
| |||||||
1 | from the General Revenue Fund into the Local Government | ||||||
2 | Distributive Fund the amounts required to be transferred under | ||||||
3 | subsection (b) of Section 901 of the Illinois Income Tax Act. | ||||||
4 | (c) All amounts paid into the Local Government Distributive | ||||||
5 | Fund in accordance
with this Section and allocated pursuant to | ||||||
6 | this Act are appropriated on a
continuing basis.
| ||||||
7 | (Source: P.A. 88-89.)
| ||||||
8 | Section 10. If and only if Senate Joint Resolution | ||||||
9 | Constitutional Amendment 40 of the 98th General Assembly is | ||||||
10 | adopted in accordance with Section 7 of the Illinois | ||||||
11 | Constitutional Amendment Act, the Illinois Income Tax Act is | ||||||
12 | amended by changing Sections 201, 502, and 901 as follows:
| ||||||
13 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
14 | Sec. 201. Tax Imposed. | ||||||
15 | (a) In general. A tax measured by net income is hereby | ||||||
16 | imposed on every
individual, corporation, trust and estate for | ||||||
17 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
18 | of earning or receiving income in or
as a resident of this | ||||||
19 | State. Such tax shall be in addition to all other
occupation or | ||||||
20 | privilege taxes imposed by this State or by any municipal
| ||||||
21 | corporation or political subdivision thereof. | ||||||
22 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
23 | Section shall be
determined as follows, except as adjusted by | ||||||
24 | subsection (d-1): |
| |||||||
| |||||||
1 | (1) In the case of an individual, trust or estate, for | ||||||
2 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
3 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
4 | year. | ||||||
5 | (2) In the case of an individual, trust or estate, for | ||||||
6 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
7 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
8 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
9 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
10 | 3% of the
taxpayer's net income for the period after June | ||||||
11 | 30, 1989, as calculated
under Section 202.3. | ||||||
12 | (3) In the case of an individual, trust or estate, for | ||||||
13 | taxable years
beginning after June 30, 1989, and ending | ||||||
14 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
15 | taxpayer's net
income for the taxable year. | ||||||
16 | (4) In the case of an individual, trust, or estate, for | ||||||
17 | taxable years beginning prior to January 1, 2011, and | ||||||
18 | ending after December 31, 2010, an amount equal to the sum | ||||||
19 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
20 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
21 | (ii) 5% of the taxpayer's net income for the period after | ||||||
22 | December 31, 2010, as calculated under Section 202.5. | ||||||
23 | (5) In the case of an individual, trust, or estate, for | ||||||
24 | taxable years beginning on or after January 1, 2011, and | ||||||
25 | ending prior to December 31, 2015 January 1, 2015 , an | ||||||
26 | amount equal to 5% of the taxpayer's net income for the |
| |||||||
| |||||||
1 | taxable year. | ||||||
2 | (5.1) Graduated rates. | ||||||
3 | (A) In the case of an individual, spouses filing a | ||||||
4 | joint return, a trust, or an estate, for taxable years | ||||||
5 | ending on or after December 31, 2015, the tax imposed | ||||||
6 | by subsection (a) of this Section shall be computed at | ||||||
7 | the following rates: | ||||||
8 | (i) on that portion of the taxpayer's net | ||||||
9 | income that does not exceed $12,500, 2.9%; plus | ||||||
10 | (ii) on that portion of the taxpayer's net | ||||||
11 | income exceeding $12,500, but not exceeding | ||||||
12 | $180,000, 4.9%; plus | ||||||
13 | (iii) on that portion of the taxpayer's net | ||||||
14 | income exceeding $180,000, 6.9%. | ||||||
15 | (B) In the case of a nonresident or part-year | ||||||
16 | resident, the tax liability shall be determined by | ||||||
17 | applying the rates in this paragraph (5.1) to the net | ||||||
18 | income of the taxpayer computed as if the taxpayer were | ||||||
19 | a resident for the entire taxable year, and multiplying | ||||||
20 | the result by a fraction equal to the taxpayer's net | ||||||
21 | income (before the allowance of the net loss deduction | ||||||
22 | under Section 207 of this Act in the case of a trust or | ||||||
23 | estate) divided by the net income (before the allowance | ||||||
24 | of the net loss deduction under Section 207 of this Act | ||||||
25 | in the case of a trust or estate) computed as if the | ||||||
26 | taxpayer were a resident for the entire taxable year, |
| |||||||
| |||||||
1 | provided that the fraction may not exceed 100%. | ||||||
2 | In the case of an individual, trust, or estate, for | ||||||
3 | taxable years beginning prior to January 1, 2015, and | ||||||
4 | ending after December 31, 2014, an amount equal to the sum | ||||||
5 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
6 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
7 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
8 | after December 31, 2014, as calculated under Section 202.5. | ||||||
9 | (5.2) (Blank). In the case of an individual, trust, or | ||||||
10 | estate, for taxable years beginning on or after January 1, | ||||||
11 | 2015, and ending prior to January 1, 2025, an amount equal | ||||||
12 | to 3.75% of the taxpayer's net income for the taxable year. | ||||||
13 | (5.3) (Blank). In the case of an individual, trust, or | ||||||
14 | estate, for taxable years beginning prior to January 1, | ||||||
15 | 2025, and ending after December 31, 2024, an amount equal | ||||||
16 | to the sum of (i) 3.75% of the taxpayer's net income for | ||||||
17 | the period prior to January 1, 2025, as calculated under | ||||||
18 | Section 202.5, and (ii) 3.25% of the taxpayer's net income | ||||||
19 | for the period after December 31, 2024, as calculated under | ||||||
20 | Section 202.5. | ||||||
21 | (5.4) (Blank). In the case of an individual, trust, or | ||||||
22 | estate, for taxable years beginning on or after January 1, | ||||||
23 | 2025, an amount equal to 3.25% of the taxpayer's net income | ||||||
24 | for the taxable year. | ||||||
25 | (6) In the case of a corporation, for taxable years
| ||||||
26 | ending prior to July 1, 1989, an amount equal to 4% of the
|
| |||||||
| |||||||
1 | taxpayer's net income for the taxable year. | ||||||
2 | (7) In the case of a corporation, for taxable years | ||||||
3 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
4 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
5 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
6 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
7 | taxpayer's net
income for the period after June 30, 1989, | ||||||
8 | as calculated under Section
202.3. | ||||||
9 | (8) In the case of a corporation, for taxable years | ||||||
10 | beginning after
June 30, 1989, and ending prior to January | ||||||
11 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
12 | income for the
taxable year. | ||||||
13 | (9) In the case of a corporation, for taxable years | ||||||
14 | beginning prior to January 1, 2011, and ending after | ||||||
15 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
16 | of the taxpayer's net income for the period prior to | ||||||
17 | January 1, 2011, as calculated under Section 202.5, and | ||||||
18 | (ii) 7% of the taxpayer's net income for the period after | ||||||
19 | December 31, 2010, as calculated under Section 202.5. | ||||||
20 | (10) In the case of a corporation, for taxable years | ||||||
21 | beginning on or after January 1, 2011, and ending prior to | ||||||
22 | December 31, 2015 January 1, 2015 , an amount equal to 7% of | ||||||
23 | the taxpayer's net income for the taxable year. | ||||||
24 | (11) In the case of a corporation, for taxable years | ||||||
25 | ending on or after December 31, 2015, the tax imposed by | ||||||
26 | subsection (a) of this Section shall be computed at the |
| |||||||
| |||||||
1 | following rates: | ||||||
2 | (i) on that portion of the corporation's net income | ||||||
3 | that does not exceed $12,500, 2.9%; plus | ||||||
4 | (ii) on that portion of the corporation's net | ||||||
5 | income exceeding $12,500, but not exceeding $180,000, | ||||||
6 | 4.9%; plus | ||||||
7 | (iii) on that portion of the corporation's net | ||||||
8 | income exceeding $180,000, 6.9%. | ||||||
9 | The corporation's tax liability shall be determined by | ||||||
10 | applying the table in this paragraph (11) to the net income | ||||||
11 | of the corporation computed as if it were a resident, and | ||||||
12 | multiplying the result by a fraction equal to the | ||||||
13 | corporation's net income (before the allowance of the net | ||||||
14 | loss deduction under Section 207 of this Act) divided by | ||||||
15 | the net income (before the allowance of the net loss | ||||||
16 | deduction under Section 207 of this Act) computed as if it | ||||||
17 | were a resident, provided that the fraction may not exceed | ||||||
18 | 100%. | ||||||
19 | In the case of a corporation, for taxable years | ||||||
20 | beginning prior to January 1, 2015, and ending after | ||||||
21 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
22 | the taxpayer's net income for the period prior to January | ||||||
23 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
24 | of the taxpayer's net income for the period after December | ||||||
25 | 31, 2014, as calculated under Section 202.5. | ||||||
26 | (12) (Blank). In the case of a corporation, for taxable |
| |||||||
| |||||||
1 | years beginning on or after January 1, 2015, and ending | ||||||
2 | prior to January 1, 2025, an amount equal to 5.25% of the | ||||||
3 | taxpayer's net income for the taxable year. | ||||||
4 | (13) (Blank). In the case of a corporation, for taxable | ||||||
5 | years beginning prior to January 1, 2025, and ending after | ||||||
6 | December 31, 2024, an amount equal to the sum of (i) 5.25% | ||||||
7 | of the taxpayer's net income for the period prior to | ||||||
8 | January 1, 2025, as calculated under Section 202.5, and | ||||||
9 | (ii) 4.8% of the taxpayer's net income for the period after | ||||||
10 | December 31, 2024, as calculated under Section 202.5. | ||||||
11 | (14) (Blank). In the case of a corporation, for taxable | ||||||
12 | years beginning on or after January 1, 2025, an amount | ||||||
13 | equal to 4.8% of the taxpayer's net income for the taxable | ||||||
14 | year. | ||||||
15 | The rates under this subsection (b) are subject to the | ||||||
16 | provisions of Section 201.5. | ||||||
17 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
18 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
19 | income
tax, there is also hereby imposed the Personal Property | ||||||
20 | Tax Replacement
Income Tax measured by net income on every | ||||||
21 | corporation (including Subchapter
S corporations), partnership | ||||||
22 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
23 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
24 | income in or as a resident of this State. The Personal Property
| ||||||
25 | Tax Replacement Income Tax shall be in addition to the income | ||||||
26 | tax imposed
by subsections (a) and (b) of this Section and in |
| |||||||
| |||||||
1 | addition to all other
occupation or privilege taxes imposed by | ||||||
2 | this State or by any municipal
corporation or political | ||||||
3 | subdivision thereof. | ||||||
4 | (d) Additional Personal Property Tax Replacement Income | ||||||
5 | Tax Rates.
The personal property tax replacement income tax | ||||||
6 | imposed by this subsection
and subsection (c) of this Section | ||||||
7 | in the case of a corporation, other
than a Subchapter S | ||||||
8 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
9 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
10 | income for the taxable year, except that
beginning on January | ||||||
11 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
12 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
13 | partnership, trust or a Subchapter S corporation shall be an | ||||||
14 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
15 | for the taxable year. | ||||||
16 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
17 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
18 | Illinois Insurance Code,
whose state or country of domicile | ||||||
19 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
20 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
21 | are 50% or more of its total insurance
premiums as determined | ||||||
22 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
23 | that for purposes of this determination premiums from | ||||||
24 | reinsurance do
not include premiums from inter-affiliate | ||||||
25 | reinsurance arrangements),
beginning with taxable years ending | ||||||
26 | on or after December 31, 1999,
the sum of
the rates of tax |
| |||||||
| |||||||
1 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
2 | increased) to the rate at which the total amount of tax imposed | ||||||
3 | under this Act,
net of all credits allowed under this Act, | ||||||
4 | shall equal (i) the total amount of
tax that would be imposed | ||||||
5 | on the foreign insurer's net income allocable to
Illinois for | ||||||
6 | the taxable year by such foreign insurer's state or country of
| ||||||
7 | domicile if that net income were subject to all income taxes | ||||||
8 | and taxes
measured by net income imposed by such foreign | ||||||
9 | insurer's state or country of
domicile, net of all credits | ||||||
10 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
11 | income by the foreign insurer's state of domicile.
For the | ||||||
12 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
13 | a
mutual insurer under common management. | ||||||
14 | (1) For the purposes of subsection (d-1), in no event | ||||||
15 | shall the sum of the
rates of tax imposed by subsections | ||||||
16 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
17 | (A) the total amount of tax imposed on such foreign | ||||||
18 | insurer under
this Act for a taxable year, net of all | ||||||
19 | credits allowed under this Act, plus | ||||||
20 | (B) the privilege tax imposed by Section 409 of the | ||||||
21 | Illinois Insurance
Code, the fire insurance company | ||||||
22 | tax imposed by Section 12 of the Fire
Investigation | ||||||
23 | Act, and the fire department taxes imposed under | ||||||
24 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
25 | equals 1.25% for taxable years ending prior to December 31, | ||||||
26 | 2003, or
1.75% for taxable years ending on or after |
| |||||||
| |||||||
1 | December 31, 2003, of the net
taxable premiums written for | ||||||
2 | the taxable year,
as described by subsection (1) of Section | ||||||
3 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
4 | no event increase the rates imposed under subsections
(b) | ||||||
5 | and (d). | ||||||
6 | (2) Any reduction in the rates of tax imposed by this | ||||||
7 | subsection shall be
applied first against the rates imposed | ||||||
8 | by subsection (b) and only after the
tax imposed by | ||||||
9 | subsection (a) net of all credits allowed under this | ||||||
10 | Section
other than the credit allowed under subsection (i) | ||||||
11 | has been reduced to zero,
against the rates imposed by | ||||||
12 | subsection (d). | ||||||
13 | This subsection (d-1) is exempt from the provisions of | ||||||
14 | Section 250. | ||||||
15 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
16 | against the Personal Property Tax Replacement Income Tax for
| ||||||
17 | investment in qualified property. | ||||||
18 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
19 | of
the basis of qualified property placed in service during | ||||||
20 | the taxable year,
provided such property is placed in | ||||||
21 | service on or after
July 1, 1984. There shall be allowed an | ||||||
22 | additional credit equal
to .5% of the basis of qualified | ||||||
23 | property placed in service during the
taxable year, | ||||||
24 | provided such property is placed in service on or
after | ||||||
25 | July 1, 1986, and the taxpayer's base employment
within | ||||||
26 | Illinois has increased by 1% or more over the preceding |
| |||||||
| |||||||
1 | year as
determined by the taxpayer's employment records | ||||||
2 | filed with the
Illinois Department of Employment Security. | ||||||
3 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
4 | met the 1% growth in base employment for
the first year in | ||||||
5 | which they file employment records with the Illinois
| ||||||
6 | Department of Employment Security. The provisions added to | ||||||
7 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
8 | Act 87-895) shall be
construed as declaratory of existing | ||||||
9 | law and not as a new enactment. If,
in any year, the | ||||||
10 | increase in base employment within Illinois over the
| ||||||
11 | preceding year is less than 1%, the additional credit shall | ||||||
12 | be limited to that
percentage times a fraction, the | ||||||
13 | numerator of which is .5% and the denominator
of which is | ||||||
14 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
15 | not be
allowed to the extent that it would reduce a | ||||||
16 | taxpayer's liability in any tax
year below zero, nor may | ||||||
17 | any credit for qualified property be allowed for any
year | ||||||
18 | other than the year in which the property was placed in | ||||||
19 | service in
Illinois. For tax years ending on or after | ||||||
20 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
21 | credit shall be allowed for the tax year in
which the | ||||||
22 | property is placed in service, or, if the amount of the | ||||||
23 | credit
exceeds the tax liability for that year, whether it | ||||||
24 | exceeds the original
liability or the liability as later | ||||||
25 | amended, such excess may be carried
forward and applied to | ||||||
26 | the tax liability of the 5 taxable years following
the |
| |||||||
| |||||||
1 | excess credit years if the taxpayer (i) makes investments | ||||||
2 | which cause
the creation of a minimum of 2,000 full-time | ||||||
3 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
4 | enterprise zone established pursuant to the Illinois
| ||||||
5 | Enterprise Zone Act and (iii) is certified by the | ||||||
6 | Department of Commerce
and Community Affairs (now | ||||||
7 | Department of Commerce and Economic Opportunity) as | ||||||
8 | complying with the requirements specified in
clause (i) and | ||||||
9 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
10 | Community Affairs (now Department of Commerce and Economic | ||||||
11 | Opportunity) shall notify the Department of Revenue of all | ||||||
12 | such
certifications immediately. For tax years ending | ||||||
13 | after December 31, 1988,
the credit shall be allowed for | ||||||
14 | the tax year in which the property is
placed in service, | ||||||
15 | or, if the amount of the credit exceeds the tax
liability | ||||||
16 | for that year, whether it exceeds the original liability or | ||||||
17 | the
liability as later amended, such excess may be carried | ||||||
18 | forward and applied
to the tax liability of the 5 taxable | ||||||
19 | years following the excess credit
years. The credit shall | ||||||
20 | be applied to the earliest year for which there is
a | ||||||
21 | liability. If there is credit from more than one tax year | ||||||
22 | that is
available to offset a liability, earlier credit | ||||||
23 | shall be applied first. | ||||||
24 | (2) The term "qualified property" means property | ||||||
25 | which: | ||||||
26 | (A) is tangible, whether new or used, including |
| |||||||
| |||||||
1 | buildings and structural
components of buildings and | ||||||
2 | signs that are real property, but not including
land or | ||||||
3 | improvements to real property that are not a structural | ||||||
4 | component of a
building such as landscaping, sewer | ||||||
5 | lines, local access roads, fencing, parking
lots, and | ||||||
6 | other appurtenances; | ||||||
7 | (B) is depreciable pursuant to Section 167 of the | ||||||
8 | Internal Revenue Code,
except that "3-year property" | ||||||
9 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
10 | eligible for the credit provided by this subsection | ||||||
11 | (e); | ||||||
12 | (C) is acquired by purchase as defined in Section | ||||||
13 | 179(d) of
the Internal Revenue Code; | ||||||
14 | (D) is used in Illinois by a taxpayer who is | ||||||
15 | primarily engaged in
manufacturing, or in mining coal | ||||||
16 | or fluorite, or in retailing, or was placed in service | ||||||
17 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
18 | Zone established pursuant to the River Edge | ||||||
19 | Redevelopment Zone Act; and | ||||||
20 | (E) has not previously been used in Illinois in | ||||||
21 | such a manner and by
such a person as would qualify for | ||||||
22 | the credit provided by this subsection
(e) or | ||||||
23 | subsection (f). | ||||||
24 | (3) For purposes of this subsection (e), | ||||||
25 | "manufacturing" means
the material staging and production | ||||||
26 | of tangible personal property by
procedures commonly |
| |||||||
| |||||||
1 | regarded as manufacturing, processing, fabrication, or
| ||||||
2 | assembling which changes some existing material into new | ||||||
3 | shapes, new
qualities, or new combinations. For purposes of | ||||||
4 | this subsection
(e) the term "mining" shall have the same | ||||||
5 | meaning as the term "mining" in
Section 613(c) of the | ||||||
6 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
7 | the term "retailing" means the sale of tangible personal | ||||||
8 | property for use or consumption and not for resale, or
| ||||||
9 | services rendered in conjunction with the sale of tangible | ||||||
10 | personal property for use or consumption and not for | ||||||
11 | resale. For purposes of this subsection (e), "tangible | ||||||
12 | personal property" has the same meaning as when that term | ||||||
13 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
14 | taxable years ending after December 31, 2008, does not | ||||||
15 | include the generation, transmission, or distribution of | ||||||
16 | electricity. | ||||||
17 | (4) The basis of qualified property shall be the basis
| ||||||
18 | used to compute the depreciation deduction for federal | ||||||
19 | income tax purposes. | ||||||
20 | (5) If the basis of the property for federal income tax | ||||||
21 | depreciation
purposes is increased after it has been placed | ||||||
22 | in service in Illinois by
the taxpayer, the amount of such | ||||||
23 | increase shall be deemed property placed
in service on the | ||||||
24 | date of such increase in basis. | ||||||
25 | (6) The term "placed in service" shall have the same
| ||||||
26 | meaning as under Section 46 of the Internal Revenue Code. |
| |||||||
| |||||||
1 | (7) If during any taxable year, any property ceases to
| ||||||
2 | be qualified property in the hands of the taxpayer within | ||||||
3 | 48 months after
being placed in service, or the situs of | ||||||
4 | any qualified property is
moved outside Illinois within 48 | ||||||
5 | months after being placed in service, the
Personal Property | ||||||
6 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
7 | increased. Such increase shall be determined by (i) | ||||||
8 | recomputing the
investment credit which would have been | ||||||
9 | allowed for the year in which
credit for such property was | ||||||
10 | originally allowed by eliminating such
property from such | ||||||
11 | computation and, (ii) subtracting such recomputed credit
| ||||||
12 | from the amount of credit previously allowed. For the | ||||||
13 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
14 | qualified property resulting
from a redetermination of the | ||||||
15 | purchase price shall be deemed a disposition
of qualified | ||||||
16 | property to the extent of such reduction. | ||||||
17 | (8) Unless the investment credit is extended by law, | ||||||
18 | the
basis of qualified property shall not include costs | ||||||
19 | incurred after
December 31, 2018, except for costs incurred | ||||||
20 | pursuant to a binding
contract entered into on or before | ||||||
21 | December 31, 2018. | ||||||
22 | (9) Each taxable year ending before December 31, 2000, | ||||||
23 | a partnership may
elect to pass through to its
partners the | ||||||
24 | credits to which the partnership is entitled under this | ||||||
25 | subsection
(e) for the taxable year. A partner may use the | ||||||
26 | credit allocated to him or her
under this paragraph only |
| |||||||
| |||||||
1 | against the tax imposed in subsections (c) and (d) of
this | ||||||
2 | Section. If the partnership makes that election, those | ||||||
3 | credits shall be
allocated among the partners in the | ||||||
4 | partnership in accordance with the rules
set forth in | ||||||
5 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
6 | promulgated under that Section, and the allocated amount of | ||||||
7 | the credits shall
be allowed to the partners for that | ||||||
8 | taxable year. The partnership shall make
this election on | ||||||
9 | its Personal Property Tax Replacement Income Tax return for
| ||||||
10 | that taxable year. The election to pass through the credits | ||||||
11 | shall be
irrevocable. | ||||||
12 | For taxable years ending on or after December 31, 2000, | ||||||
13 | a
partner that qualifies its
partnership for a subtraction | ||||||
14 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
15 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
16 | S
corporation for a subtraction under subparagraph (S) of | ||||||
17 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
18 | allowed a credit under this subsection
(e) equal to its | ||||||
19 | share of the credit earned under this subsection (e) during
| ||||||
20 | the taxable year by the partnership or Subchapter S | ||||||
21 | corporation, determined in
accordance with the | ||||||
22 | determination of income and distributive share of
income | ||||||
23 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
24 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
25 | of Section 250. | ||||||
26 | (f) Investment credit; Enterprise Zone; River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone. | ||||||
2 | (1) A taxpayer shall be allowed a credit against the | ||||||
3 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
4 | investment in qualified
property which is placed in service | ||||||
5 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
6 | Enterprise Zone Act or, for property placed in service on | ||||||
7 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
8 | established pursuant to the River Edge Redevelopment Zone | ||||||
9 | Act. For partners, shareholders
of Subchapter S | ||||||
10 | corporations, and owners of limited liability companies,
| ||||||
11 | if the liability company is treated as a partnership for | ||||||
12 | purposes of
federal and State income taxation, there shall | ||||||
13 | be allowed a credit under
this subsection (f) to be | ||||||
14 | determined in accordance with the determination
of income | ||||||
15 | and distributive share of income under Sections 702 and 704 | ||||||
16 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
17 | shall be .5% of the
basis for such property. The credit | ||||||
18 | shall be available only in the taxable
year in which the | ||||||
19 | property is placed in service in the Enterprise Zone or | ||||||
20 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
21 | the extent that it would reduce a taxpayer's
liability for | ||||||
22 | the tax imposed by subsections (a) and (b) of this Section | ||||||
23 | to
below zero. For tax years ending on or after December | ||||||
24 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
25 | which the property is placed in
service, or, if the amount | ||||||
26 | of the credit exceeds the tax liability for that
year, |
| |||||||
| |||||||
1 | whether it exceeds the original liability or the liability | ||||||
2 | as later
amended, such excess may be carried forward and | ||||||
3 | applied to the tax
liability of the 5 taxable years | ||||||
4 | following the excess credit year.
The credit shall be | ||||||
5 | applied to the earliest year for which there is a
| ||||||
6 | liability. If there is credit from more than one tax year | ||||||
7 | that is available
to offset a liability, the credit | ||||||
8 | accruing first in time shall be applied
first. | ||||||
9 | (2) The term qualified property means property which: | ||||||
10 | (A) is tangible, whether new or used, including | ||||||
11 | buildings and
structural components of buildings; | ||||||
12 | (B) is depreciable pursuant to Section 167 of the | ||||||
13 | Internal Revenue
Code, except that "3-year property" | ||||||
14 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
15 | eligible for the credit provided by this subsection | ||||||
16 | (f); | ||||||
17 | (C) is acquired by purchase as defined in Section | ||||||
18 | 179(d) of
the Internal Revenue Code; | ||||||
19 | (D) is used in the Enterprise Zone or River Edge | ||||||
20 | Redevelopment Zone by the taxpayer; and | ||||||
21 | (E) has not been previously used in Illinois in | ||||||
22 | such a manner and by
such a person as would qualify for | ||||||
23 | the credit provided by this subsection
(f) or | ||||||
24 | subsection (e). | ||||||
25 | (3) The basis of qualified property shall be the basis | ||||||
26 | used to compute
the depreciation deduction for federal |
| |||||||
| |||||||
1 | income tax purposes. | ||||||
2 | (4) If the basis of the property for federal income tax | ||||||
3 | depreciation
purposes is increased after it has been placed | ||||||
4 | in service in the Enterprise
Zone or River Edge | ||||||
5 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
6 | increase shall be deemed property
placed in service on the | ||||||
7 | date of such increase in basis. | ||||||
8 | (5) The term "placed in service" shall have the same | ||||||
9 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
10 | (6) If during any taxable year, any property ceases to | ||||||
11 | be qualified
property in the hands of the taxpayer within | ||||||
12 | 48 months after being placed
in service, or the situs of | ||||||
13 | any qualified property is moved outside the
Enterprise Zone | ||||||
14 | or River Edge Redevelopment Zone within 48 months after | ||||||
15 | being placed in service, the tax
imposed under subsections | ||||||
16 | (a) and (b) of this Section for such taxable year
shall be | ||||||
17 | increased. Such increase shall be determined by (i) | ||||||
18 | recomputing
the investment credit which would have been | ||||||
19 | allowed for the year in which
credit for such property was | ||||||
20 | originally allowed by eliminating such
property from such | ||||||
21 | computation, and (ii) subtracting such recomputed credit
| ||||||
22 | from the amount of credit previously allowed. For the | ||||||
23 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
24 | qualified property resulting
from a redetermination of the | ||||||
25 | purchase price shall be deemed a disposition
of qualified | ||||||
26 | property to the extent of such reduction. |
| |||||||
| |||||||
1 | (7) There shall be allowed an additional credit equal | ||||||
2 | to 0.5% of the basis of qualified property placed in | ||||||
3 | service during the taxable year in a River Edge | ||||||
4 | Redevelopment Zone, provided such property is placed in | ||||||
5 | service on or after July 1, 2006, and the taxpayer's base | ||||||
6 | employment within Illinois has increased by 1% or more over | ||||||
7 | the preceding year as determined by the taxpayer's | ||||||
8 | employment records filed with the Illinois Department of | ||||||
9 | Employment Security. Taxpayers who are new to Illinois | ||||||
10 | shall be deemed to have met the 1% growth in base | ||||||
11 | employment for the first year in which they file employment | ||||||
12 | records with the Illinois Department of Employment | ||||||
13 | Security. If, in any year, the increase in base employment | ||||||
14 | within Illinois over the preceding year is less than 1%, | ||||||
15 | the additional credit shall be limited to that percentage | ||||||
16 | times a fraction, the numerator of which is 0.5% and the | ||||||
17 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
18 | (g) (Blank). | ||||||
19 | (h) Investment credit; High Impact Business. | ||||||
20 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
21 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
22 | allowed a credit
against the tax imposed by subsections (a) | ||||||
23 | and (b) of this Section for
investment in qualified
| ||||||
24 | property which is placed in service by a Department of | ||||||
25 | Commerce and Economic Opportunity
designated High Impact | ||||||
26 | Business. The credit shall be .5% of the basis
for such |
| |||||||
| |||||||
1 | property. The credit shall not be available (i) until the | ||||||
2 | minimum
investments in qualified property set forth in | ||||||
3 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
4 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
5 | time authorized in subsection (b-5) of the Illinois
| ||||||
6 | Enterprise Zone Act for entities designated as High Impact | ||||||
7 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
8 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
9 | Act, and shall not be allowed to the extent that it would
| ||||||
10 | reduce a taxpayer's liability for the tax imposed by | ||||||
11 | subsections (a) and (b) of
this Section to below zero. The | ||||||
12 | credit applicable to such investments shall be
taken in the | ||||||
13 | taxable year in which such investments have been completed. | ||||||
14 | The
credit for additional investments beyond the minimum | ||||||
15 | investment by a designated
high impact business authorized | ||||||
16 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
17 | Enterprise Zone Act shall be available only in the taxable | ||||||
18 | year in
which the property is placed in service and shall | ||||||
19 | not be allowed to the extent
that it would reduce a | ||||||
20 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
21 | and (b) of this Section to below zero.
For tax years ending | ||||||
22 | on or after December 31, 1987, the credit shall be
allowed | ||||||
23 | for the tax year in which the property is placed in | ||||||
24 | service, or, if
the amount of the credit exceeds the tax | ||||||
25 | liability for that year, whether
it exceeds the original | ||||||
26 | liability or the liability as later amended, such
excess |
| |||||||
| |||||||
1 | may be carried forward and applied to the tax liability of | ||||||
2 | the 5
taxable years following the excess credit year. The | ||||||
3 | credit shall be
applied to the earliest year for which | ||||||
4 | there is a liability. If there is
credit from more than one | ||||||
5 | tax year that is available to offset a liability,
the | ||||||
6 | credit accruing first in time shall be applied first. | ||||||
7 | Changes made in this subdivision (h)(1) by Public Act | ||||||
8 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
9 | reflect existing law. | ||||||
10 | (2) The term qualified property means property which: | ||||||
11 | (A) is tangible, whether new or used, including | ||||||
12 | buildings and
structural components of buildings; | ||||||
13 | (B) is depreciable pursuant to Section 167 of the | ||||||
14 | Internal Revenue
Code, except that "3-year property" | ||||||
15 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
16 | eligible for the credit provided by this subsection | ||||||
17 | (h); | ||||||
18 | (C) is acquired by purchase as defined in Section | ||||||
19 | 179(d) of the
Internal Revenue Code; and | ||||||
20 | (D) is not eligible for the Enterprise Zone | ||||||
21 | Investment Credit provided
by subsection (f) of this | ||||||
22 | Section. | ||||||
23 | (3) The basis of qualified property shall be the basis | ||||||
24 | used to compute
the depreciation deduction for federal | ||||||
25 | income tax purposes. | ||||||
26 | (4) If the basis of the property for federal income tax |
| |||||||
| |||||||
1 | depreciation
purposes is increased after it has been placed | ||||||
2 | in service in a federally
designated Foreign Trade Zone or | ||||||
3 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
4 | such increase shall be deemed property placed in service on
| ||||||
5 | the date of such increase in basis. | ||||||
6 | (5) The term "placed in service" shall have the same | ||||||
7 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
8 | (6) If during any taxable year ending on or before | ||||||
9 | December 31, 1996,
any property ceases to be qualified
| ||||||
10 | property in the hands of the taxpayer within 48 months | ||||||
11 | after being placed
in service, or the situs of any | ||||||
12 | qualified property is moved outside
Illinois within 48 | ||||||
13 | months after being placed in service, the tax imposed
under | ||||||
14 | subsections (a) and (b) of this Section for such taxable | ||||||
15 | year shall
be increased. Such increase shall be determined | ||||||
16 | by (i) recomputing the
investment credit which would have | ||||||
17 | been allowed for the year in which
credit for such property | ||||||
18 | was originally allowed by eliminating such
property from | ||||||
19 | such computation, and (ii) subtracting such recomputed | ||||||
20 | credit
from the amount of credit previously allowed. For | ||||||
21 | the purposes of this
paragraph (6), a reduction of the | ||||||
22 | basis of qualified property resulting
from a | ||||||
23 | redetermination of the purchase price shall be deemed a | ||||||
24 | disposition
of qualified property to the extent of such | ||||||
25 | reduction. | ||||||
26 | (7) Beginning with tax years ending after December 31, |
| |||||||
| |||||||
1 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
2 | subsection (h) and thereby is
granted a tax abatement and | ||||||
3 | the taxpayer relocates its entire facility in
violation of | ||||||
4 | the explicit terms and length of the contract under Section
| ||||||
5 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
6 | subsections
(a) and (b) of this Section shall be increased | ||||||
7 | for the taxable year
in which the taxpayer relocated its | ||||||
8 | facility by an amount equal to the
amount of credit | ||||||
9 | received by the taxpayer under this subsection (h). | ||||||
10 | (i) Credit for Personal Property Tax Replacement Income | ||||||
11 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
12 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
13 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
14 | (d) of this Section. This credit shall be computed by | ||||||
15 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
16 | Section by a fraction, the numerator
of which is base income | ||||||
17 | allocable to Illinois and the denominator of which is
Illinois | ||||||
18 | base income, and further multiplying the product by the tax | ||||||
19 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
20 | Any credit earned on or after December 31, 1986 under
this | ||||||
21 | subsection which is unused in the year
the credit is computed | ||||||
22 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
23 | and (b) for that year (whether it exceeds the original
| ||||||
24 | liability or the liability as later amended) may be carried | ||||||
25 | forward and
applied to the tax liability imposed by subsections | ||||||
26 | (a) and (b) of the 5
taxable years following the excess credit |
| |||||||
| |||||||
1 | year, provided that no credit may
be carried forward to any | ||||||
2 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
3 | applied first to the earliest year for which there is a | ||||||
4 | liability. If
there is a credit under this subsection from more | ||||||
5 | than one tax year that is
available to offset a liability the | ||||||
6 | earliest credit arising under this
subsection shall be applied | ||||||
7 | first. | ||||||
8 | If, during any taxable year ending on or after December 31, | ||||||
9 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
10 | Section for which a taxpayer
has claimed a credit under this | ||||||
11 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
12 | shall also be reduced. Such reduction shall be
determined by | ||||||
13 | recomputing the credit to take into account the reduced tax
| ||||||
14 | imposed by subsections (c) and (d). If any portion of the
| ||||||
15 | reduced amount of credit has been carried to a different | ||||||
16 | taxable year, an
amended return shall be filed for such taxable | ||||||
17 | year to reduce the amount of
credit claimed. | ||||||
18 | (j) Training expense credit. Beginning with tax years | ||||||
19 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
20 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
21 | imposed by subsections (a) and (b) under this Section
for all | ||||||
22 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
23 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
24 | of Illinois by a taxpayer, for educational or vocational | ||||||
25 | training in
semi-technical or technical fields or semi-skilled | ||||||
26 | or skilled fields, which
were deducted from gross income in the |
| |||||||
| |||||||
1 | computation of taxable income. The
credit against the tax | ||||||
2 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
3 | training expenses. For partners, shareholders of subchapter S
| ||||||
4 | corporations, and owners of limited liability companies, if the | ||||||
5 | liability
company is treated as a partnership for purposes of | ||||||
6 | federal and State income
taxation, there shall be allowed a | ||||||
7 | credit under this subsection (j) to be
determined in accordance | ||||||
8 | with the determination of income and distributive
share of | ||||||
9 | income under Sections 702 and 704 and subchapter S of the | ||||||
10 | Internal
Revenue Code. | ||||||
11 | Any credit allowed under this subsection which is unused in | ||||||
12 | the year
the credit is earned may be carried forward to each of | ||||||
13 | the 5 taxable
years following the year for which the credit is | ||||||
14 | first computed until it is
used. This credit shall be applied | ||||||
15 | first to the earliest year for which
there is a liability. If | ||||||
16 | there is a credit under this subsection from more
than one tax | ||||||
17 | year that is available to offset a liability the earliest
| ||||||
18 | credit arising under this subsection shall be applied first. No | ||||||
19 | carryforward
credit may be claimed in any tax year ending on or | ||||||
20 | after
December 31, 2003. | ||||||
21 | (k) Research and development credit. For tax years ending | ||||||
22 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
23 | beginning again for tax years ending on or after December 31, | ||||||
24 | 2004, and ending prior to January 1, 2016, a taxpayer shall be
| ||||||
25 | allowed a credit against the tax imposed by subsections (a) and | ||||||
26 | (b) of this
Section for increasing research activities in this |
| |||||||
| |||||||
1 | State. The credit
allowed against the tax imposed by | ||||||
2 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
3 | qualifying expenditures for increasing research activities
in | ||||||
4 | this State. For partners, shareholders of subchapter S | ||||||
5 | corporations, and
owners of limited liability companies, if the | ||||||
6 | liability company is treated as a
partnership for purposes of | ||||||
7 | federal and State income taxation, there shall be
allowed a | ||||||
8 | credit under this subsection to be determined in accordance | ||||||
9 | with the
determination of income and distributive share of | ||||||
10 | income under Sections 702 and
704 and subchapter S of the | ||||||
11 | Internal Revenue Code. | ||||||
12 | For purposes of this subsection, "qualifying expenditures" | ||||||
13 | means the
qualifying expenditures as defined for the federal | ||||||
14 | credit for increasing
research activities which would be | ||||||
15 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
16 | which are conducted in this State, "qualifying
expenditures for | ||||||
17 | increasing research activities in this State" means the
excess | ||||||
18 | of qualifying expenditures for the taxable year in which | ||||||
19 | incurred
over qualifying expenditures for the base period, | ||||||
20 | "qualifying expenditures
for the base period" means the average | ||||||
21 | of the qualifying expenditures for
each year in the base | ||||||
22 | period, and "base period" means the 3 taxable years
immediately | ||||||
23 | preceding the taxable year for which the determination is
being | ||||||
24 | made. | ||||||
25 | Any credit in excess of the tax liability for the taxable | ||||||
26 | year
may be carried forward. A taxpayer may elect to have the
|
| |||||||
| |||||||
1 | unused credit shown on its final completed return carried over | ||||||
2 | as a credit
against the tax liability for the following 5 | ||||||
3 | taxable years or until it has
been fully used, whichever occurs | ||||||
4 | first; provided that no credit earned in a tax year ending | ||||||
5 | prior to December 31, 2003 may be carried forward to any year | ||||||
6 | ending on or after December 31, 2003. | ||||||
7 | If an unused credit is carried forward to a given year from | ||||||
8 | 2 or more
earlier years, that credit arising in the earliest | ||||||
9 | year will be applied
first against the tax liability for the | ||||||
10 | given year. If a tax liability for
the given year still | ||||||
11 | remains, the credit from the next earliest year will
then be | ||||||
12 | applied, and so on, until all credits have been used or no tax
| ||||||
13 | liability for the given year remains. Any remaining unused | ||||||
14 | credit or
credits then will be carried forward to the next | ||||||
15 | following year in which a
tax liability is incurred, except | ||||||
16 | that no credit can be carried forward to
a year which is more | ||||||
17 | than 5 years after the year in which the expense for
which the | ||||||
18 | credit is given was incurred. | ||||||
19 | No inference shall be drawn from this amendatory Act of the | ||||||
20 | 91st General
Assembly in construing this Section for taxable | ||||||
21 | years beginning before January
1, 1999. | ||||||
22 | (l) Environmental Remediation Tax Credit. | ||||||
23 | (i) For tax years ending after December 31, 1997 and on | ||||||
24 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
25 | credit against the tax
imposed by subsections (a) and (b) | ||||||
26 | of this Section for certain amounts paid
for unreimbursed |
| |||||||
| |||||||
1 | eligible remediation costs, as specified in this | ||||||
2 | subsection.
For purposes of this Section, "unreimbursed | ||||||
3 | eligible remediation costs" means
costs approved by the | ||||||
4 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
5 | Section 58.14 of the Environmental Protection Act that were | ||||||
6 | paid in performing
environmental remediation at a site for | ||||||
7 | which a No Further Remediation Letter
was issued by the | ||||||
8 | Agency and recorded under Section 58.10 of the | ||||||
9 | Environmental
Protection Act. The credit must be claimed | ||||||
10 | for the taxable year in which
Agency approval of the | ||||||
11 | eligible remediation costs is granted. The credit is
not | ||||||
12 | available to any taxpayer if the taxpayer or any related | ||||||
13 | party caused or
contributed to, in any material respect, a | ||||||
14 | release of regulated substances on,
in, or under the site | ||||||
15 | that was identified and addressed by the remedial
action | ||||||
16 | pursuant to the Site Remediation Program of the | ||||||
17 | Environmental Protection
Act. After the Pollution Control | ||||||
18 | Board rules are adopted pursuant to the
Illinois | ||||||
19 | Administrative Procedure Act for the administration and | ||||||
20 | enforcement of
Section 58.9 of the Environmental | ||||||
21 | Protection Act, determinations as to credit
availability | ||||||
22 | for purposes of this Section shall be made consistent with | ||||||
23 | those
rules. For purposes of this Section, "taxpayer" | ||||||
24 | includes a person whose tax
attributes the taxpayer has | ||||||
25 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
26 | and "related party" includes the persons disallowed a |
| |||||||
| |||||||
1 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
2 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
3 | a related taxpayer, as well as any of its
partners. The | ||||||
4 | credit allowed against the tax imposed by subsections (a) | ||||||
5 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
6 | remediation costs in
excess of $100,000 per site, except | ||||||
7 | that the $100,000 threshold shall not apply
to any site | ||||||
8 | contained in an enterprise zone as determined by the | ||||||
9 | Department of
Commerce and Community Affairs (now | ||||||
10 | Department of Commerce and Economic Opportunity). The | ||||||
11 | total credit allowed shall not exceed
$40,000 per year with | ||||||
12 | a maximum total of $150,000 per site. For partners and
| ||||||
13 | shareholders of subchapter S corporations, there shall be | ||||||
14 | allowed a credit
under this subsection to be determined in | ||||||
15 | accordance with the determination of
income and | ||||||
16 | distributive share of income under Sections 702 and 704 and
| ||||||
17 | subchapter S of the Internal Revenue Code. | ||||||
18 | (ii) A credit allowed under this subsection that is | ||||||
19 | unused in the year
the credit is earned may be carried | ||||||
20 | forward to each of the 5 taxable years
following the year | ||||||
21 | for which the credit is first earned until it is used.
The | ||||||
22 | term "unused credit" does not include any amounts of | ||||||
23 | unreimbursed eligible
remediation costs in excess of the | ||||||
24 | maximum credit per site authorized under
paragraph (i). | ||||||
25 | This credit shall be applied first to the earliest year
for | ||||||
26 | which there is a liability. If there is a credit under this |
| |||||||
| |||||||
1 | subsection
from more than one tax year that is available to | ||||||
2 | offset a liability, the
earliest credit arising under this | ||||||
3 | subsection shall be applied first. A
credit allowed under | ||||||
4 | this subsection may be sold to a buyer as part of a sale
of | ||||||
5 | all or part of the remediation site for which the credit | ||||||
6 | was granted. The
purchaser of a remediation site and the | ||||||
7 | tax credit shall succeed to the unused
credit and remaining | ||||||
8 | carry-forward period of the seller. To perfect the
| ||||||
9 | transfer, the assignor shall record the transfer in the | ||||||
10 | chain of title for the
site and provide written notice to | ||||||
11 | the Director of the Illinois Department of
Revenue of the | ||||||
12 | assignor's intent to sell the remediation site and the | ||||||
13 | amount of
the tax credit to be transferred as a portion of | ||||||
14 | the sale. In no event may a
credit be transferred to any | ||||||
15 | taxpayer if the taxpayer or a related party would
not be | ||||||
16 | eligible under the provisions of subsection (i). | ||||||
17 | (iii) For purposes of this Section, the term "site" | ||||||
18 | shall have the same
meaning as under Section 58.2 of the | ||||||
19 | Environmental Protection Act. | ||||||
20 | (m) Education expense credit. Beginning with tax years | ||||||
21 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
22 | of one or more qualifying pupils shall be allowed a credit
| ||||||
23 | against the tax imposed by subsections (a) and (b) of this | ||||||
24 | Section for
qualified education expenses incurred on behalf of | ||||||
25 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
26 | qualified education expenses, but in no
event may the total |
| |||||||
| |||||||
1 | credit under this subsection claimed by a
family that is the
| ||||||
2 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
3 | credit under
this subsection reduce the taxpayer's liability | ||||||
4 | under this Act to less than
zero. This subsection is exempt | ||||||
5 | from the provisions of Section 250 of this
Act. | ||||||
6 | For purposes of this subsection: | ||||||
7 | "Qualifying pupils" means individuals who (i) are | ||||||
8 | residents of the State of
Illinois, (ii) are under the age of | ||||||
9 | 21 at the close of the school year for
which a credit is | ||||||
10 | sought, and (iii) during the school year for which a credit
is | ||||||
11 | sought were full-time pupils enrolled in a kindergarten through | ||||||
12 | twelfth
grade education program at any school, as defined in | ||||||
13 | this subsection. | ||||||
14 | "Qualified education expense" means the amount incurred
on | ||||||
15 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
16 | book fees, and
lab fees at the school in which the pupil is | ||||||
17 | enrolled during the regular school
year. | ||||||
18 | "School" means any public or nonpublic elementary or | ||||||
19 | secondary school in
Illinois that is in compliance with Title | ||||||
20 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
21 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
22 | except that nothing shall be construed to require a child to
| ||||||
23 | attend any particular public or nonpublic school to qualify for | ||||||
24 | the credit
under this Section. | ||||||
25 | "Custodian" means, with respect to qualifying pupils, an | ||||||
26 | Illinois resident
who is a parent, the parents, a legal |
| |||||||
| |||||||
1 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
2 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
3 | credit.
| ||||||
4 | (i) For tax years ending on or after December 31, 2006, | ||||||
5 | a taxpayer shall be allowed a credit against the tax | ||||||
6 | imposed by subsections (a) and (b) of this Section for | ||||||
7 | certain amounts paid for unreimbursed eligible remediation | ||||||
8 | costs, as specified in this subsection. For purposes of | ||||||
9 | this Section, "unreimbursed eligible remediation costs" | ||||||
10 | means costs approved by the Illinois Environmental | ||||||
11 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
12 | Environmental Protection Act that were paid in performing | ||||||
13 | environmental remediation at a site within a River Edge | ||||||
14 | Redevelopment Zone for which a No Further Remediation | ||||||
15 | Letter was issued by the Agency and recorded under Section | ||||||
16 | 58.10 of the Environmental Protection Act. The credit must | ||||||
17 | be claimed for the taxable year in which Agency approval of | ||||||
18 | the eligible remediation costs is granted. The credit is | ||||||
19 | not available to any taxpayer if the taxpayer or any | ||||||
20 | related party caused or contributed to, in any material | ||||||
21 | respect, a release of regulated substances on, in, or under | ||||||
22 | the site that was identified and addressed by the remedial | ||||||
23 | action pursuant to the Site Remediation Program of the | ||||||
24 | Environmental Protection Act. Determinations as to credit | ||||||
25 | availability for purposes of this Section shall be made | ||||||
26 | consistent with rules adopted by the Pollution Control |
| |||||||
| |||||||
1 | Board pursuant to the Illinois Administrative Procedure | ||||||
2 | Act for the administration and enforcement of Section 58.9 | ||||||
3 | of the Environmental Protection Act. For purposes of this | ||||||
4 | Section, "taxpayer" includes a person whose tax attributes | ||||||
5 | the taxpayer has succeeded to under Section 381 of the | ||||||
6 | Internal Revenue Code and "related party" includes the | ||||||
7 | persons disallowed a deduction for losses by paragraphs | ||||||
8 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
9 | Code by virtue of being a related taxpayer, as well as any | ||||||
10 | of its partners. The credit allowed against the tax imposed | ||||||
11 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
12 | unreimbursed eligible remediation costs in excess of | ||||||
13 | $100,000 per site. | ||||||
14 | (ii) A credit allowed under this subsection that is | ||||||
15 | unused in the year the credit is earned may be carried | ||||||
16 | forward to each of the 5 taxable years following the year | ||||||
17 | for which the credit is first earned until it is used. This | ||||||
18 | credit shall be applied first to the earliest year for | ||||||
19 | which there is a liability. If there is a credit under this | ||||||
20 | subsection from more than one tax year that is available to | ||||||
21 | offset a liability, the earliest credit arising under this | ||||||
22 | subsection shall be applied first. A credit allowed under | ||||||
23 | this subsection may be sold to a buyer as part of a sale of | ||||||
24 | all or part of the remediation site for which the credit | ||||||
25 | was granted. The purchaser of a remediation site and the | ||||||
26 | tax credit shall succeed to the unused credit and remaining |
| |||||||
| |||||||
1 | carry-forward period of the seller. To perfect the | ||||||
2 | transfer, the assignor shall record the transfer in the | ||||||
3 | chain of title for the site and provide written notice to | ||||||
4 | the Director of the Illinois Department of Revenue of the | ||||||
5 | assignor's intent to sell the remediation site and the | ||||||
6 | amount of the tax credit to be transferred as a portion of | ||||||
7 | the sale. In no event may a credit be transferred to any | ||||||
8 | taxpayer if the taxpayer or a related party would not be | ||||||
9 | eligible under the provisions of subsection (i). | ||||||
10 | (iii) For purposes of this Section, the term "site" | ||||||
11 | shall have the same meaning as under Section 58.2 of the | ||||||
12 | Environmental Protection Act. | ||||||
13 | (o) For each of taxable years during the Compassionate Use | ||||||
14 | of Medical Cannabis Pilot Program, a surcharge is imposed on | ||||||
15 | all taxpayers on income arising from the sale or exchange of | ||||||
16 | capital assets, depreciable business property, real property | ||||||
17 | used in the trade or business, and Section 197 intangibles of | ||||||
18 | an organization registrant under the Compassionate Use of | ||||||
19 | Medical Cannabis Pilot Program Act. The amount of the surcharge | ||||||
20 | is equal to the amount of federal income tax liability for the | ||||||
21 | taxable year attributable to those sales and exchanges. The | ||||||
22 | surcharge imposed does not apply if: | ||||||
23 | (1) the medical cannabis cultivation center | ||||||
24 | registration, medical cannabis dispensary registration, or | ||||||
25 | the property of a registration is transferred as a result | ||||||
26 | of any of the following: |
| |||||||
| |||||||
1 | (A) bankruptcy, a receivership, or a debt | ||||||
2 | adjustment initiated by or against the initial | ||||||
3 | registration or the substantial owners of the initial | ||||||
4 | registration; | ||||||
5 | (B) cancellation, revocation, or termination of | ||||||
6 | any registration by the Illinois Department of Public | ||||||
7 | Health; | ||||||
8 | (C) a determination by the Illinois Department of | ||||||
9 | Public Health that transfer of the registration is in | ||||||
10 | the best interests of Illinois qualifying patients as | ||||||
11 | defined by the Compassionate Use of Medical Cannabis | ||||||
12 | Pilot Program Act; | ||||||
13 | (D) the death of an owner of the equity interest in | ||||||
14 | a registrant; | ||||||
15 | (E) the acquisition of a controlling interest in | ||||||
16 | the stock or substantially all of the assets of a | ||||||
17 | publicly traded company; | ||||||
18 | (F) a transfer by a parent company to a wholly | ||||||
19 | owned subsidiary; or | ||||||
20 | (G) the transfer or sale to or by one person to | ||||||
21 | another person where both persons were initial owners | ||||||
22 | of the registration when the registration was issued; | ||||||
23 | or | ||||||
24 | (2) the cannabis cultivation center registration, | ||||||
25 | medical cannabis dispensary registration, or the | ||||||
26 | controlling interest in a registrant's property is |
| |||||||
| |||||||
1 | transferred in a transaction to lineal descendants in which | ||||||
2 | no gain or loss is recognized or as a result of a | ||||||
3 | transaction in accordance with Section 351 of the Internal | ||||||
4 | Revenue Code in which no gain or loss is recognized. | ||||||
5 | (Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, | ||||||
6 | eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; revised | ||||||
7 | 8-9-13.)
| ||||||
8 | (35 ILCS 5/502) (from Ch. 120, par. 5-502)
| ||||||
9 | Sec. 502. Returns and notices.
| ||||||
10 | (a) In general. A return with respect to the taxes imposed | ||||||
11 | by this
Act shall be made by every person for any taxable year:
| ||||||
12 | (1) for which such person is liable for a tax imposed | ||||||
13 | by this Act,
or
| ||||||
14 | (2) in the case of a resident or in the case of a | ||||||
15 | corporation which
is qualified to do business in this | ||||||
16 | State, for which such person is
required to make a federal | ||||||
17 | income tax return, regardless of whether such
person is | ||||||
18 | liable for a tax imposed by this Act. However, this | ||||||
19 | paragraph
shall not require a resident to make a return if | ||||||
20 | such person has
an
Illinois base income of the basic amount | ||||||
21 | in Section 204(b) or
less and is either claimed as a | ||||||
22 | dependent on
another person's tax return under the Internal | ||||||
23 | Revenue Code, or is
claimed as a dependent on another | ||||||
24 | person's tax return under this Act.
| ||||||
25 | Notwithstanding the provisions of paragraph (1), a |
| |||||||
| |||||||
1 | nonresident (other than, for taxable years ending on or after | ||||||
2 | December 31, 2011, a nonresident required to withhold tax under | ||||||
3 | Section 709.5) whose Illinois income tax liability under | ||||||
4 | subsections (a), (b), (c), and (d) of Section 201 of this Act | ||||||
5 | is paid in full after taking into account the credits allowed | ||||||
6 | under subsection (f) of this Section or allowed under Section | ||||||
7 | 709.5 of this Act shall not be required to file a return under | ||||||
8 | this subsection (a).
| ||||||
9 | (b) Fiduciaries and receivers.
| ||||||
10 | (1) Decedents. If an individual is deceased, any return | ||||||
11 | or notice
required of such individual under this Act shall | ||||||
12 | be made by his
executor, administrator, or other person | ||||||
13 | charged with the property of
such decedent.
| ||||||
14 | (2) Individuals under a disability. If an individual is | ||||||
15 | unable
to make a return or notice required under this Act, | ||||||
16 | the return or notice
required of such individual shall be | ||||||
17 | made by his duly authorized agent,
guardian, fiduciary or | ||||||
18 | other person charged with the care
of the person or | ||||||
19 | property of such individual.
| ||||||
20 | (3) Estates and trusts. Returns or notices required of | ||||||
21 | an estate
or a trust shall be made by the fiduciary | ||||||
22 | thereof.
| ||||||
23 | (4) Receivers, trustees and assignees for | ||||||
24 | corporations. In a
case where a receiver, trustee in | ||||||
25 | bankruptcy, or assignee, by order of a
court of competent | ||||||
26 | jurisdiction, by operation of law, or otherwise, has
|
| |||||||
| |||||||
1 | possession of or holds title to all or substantially all | ||||||
2 | the property or
business of a corporation, whether or not | ||||||
3 | such property or business is
being operated, such receiver, | ||||||
4 | trustee, or assignee shall make the
returns and notices | ||||||
5 | required of such corporation in the same manner and
form as | ||||||
6 | corporations are required to make such returns and notices.
| ||||||
7 | (c) Joint returns by husband and wife.
| ||||||
8 | (1) Except as provided in paragraph (3): | ||||||
9 | (A) if a husband and wife file a
joint federal | ||||||
10 | income tax return for a taxable year ending before | ||||||
11 | December 31, 2009, or for a taxable year ending on or | ||||||
12 | after December 31, 2015, they shall file a joint
return | ||||||
13 | under this Act for such taxable year and their | ||||||
14 | liabilities shall be
joint and several , and any | ||||||
15 | overpayment for that taxable year may be withheld under | ||||||
16 | Section 909 of this Act or under Section 2505-275 of | ||||||
17 | the Department of Revenue Law of the Civil | ||||||
18 | Administrative Code of Illinois and applied against a | ||||||
19 | debt of either spouse without regard to the amount of | ||||||
20 | the overpayment attributable to the other spouse ; | ||||||
21 | (B) if a husband and wife file a joint federal | ||||||
22 | income tax return for a taxable year ending on or after | ||||||
23 | December 31, 2009, and prior to December 31, 2015, they | ||||||
24 | may elect to file separate returns under this Act for | ||||||
25 | such taxable year. The election under this paragraph | ||||||
26 | must be made on or before the due date (including |
| |||||||
| |||||||
1 | extensions) of the return and, once made, shall be | ||||||
2 | irrevocable. If no election is timely made under this | ||||||
3 | paragraph for a taxable year: | ||||||
4 | (i) the couple must file a joint return under | ||||||
5 | this Act for such taxable year, | ||||||
6 | (ii) their liabilities shall be joint and | ||||||
7 | several, and | ||||||
8 | (iii) any overpayment for that taxable year | ||||||
9 | may be withheld under Section 909 of this Act or | ||||||
10 | under Section 2505-275 of the Civil Administrative | ||||||
11 | Code of Illinois and applied against a debt of | ||||||
12 | either spouse without regard to the amount of the | ||||||
13 | overpayment attributable to the other spouse; and | ||||||
14 | (C) if the federal income tax liability of either | ||||||
15 | spouse is
determined on a separate federal income tax | ||||||
16 | return, they shall file separate
returns under this | ||||||
17 | Act.
| ||||||
18 | (2) If neither spouse is required to file a federal | ||||||
19 | income tax
return and either or both are required to file a | ||||||
20 | return under this Act,
they may elect to file separate or | ||||||
21 | joint returns and pursuant to such
election their | ||||||
22 | liabilities shall be separate or joint and several.
| ||||||
23 | (3) For taxable years ending prior to December 31, | ||||||
24 | 2015, if If either husband or wife is a resident and the | ||||||
25 | other is a
nonresident, they shall file separate returns in | ||||||
26 | this State on such
forms as may be required by the |
| |||||||
| |||||||
1 | Department in which event their tax
liabilities shall be | ||||||
2 | separate; but if they file a joint federal income tax | ||||||
3 | return for a taxable year, they may elect to determine | ||||||
4 | their
joint net income and file a joint return for that | ||||||
5 | taxable year under the provisions of paragraph (1) of this | ||||||
6 | subsection as if both were residents and
in such case, | ||||||
7 | their liabilities shall be joint and several.
| ||||||
8 | (4) Innocent spouses.
| ||||||
9 | (A) However, for tax liabilities arising and paid | ||||||
10 | prior to August 13,
1999, an innocent spouse shall be | ||||||
11 | relieved of
liability for tax
(including interest and | ||||||
12 | penalties) for any taxable year for which a joint
| ||||||
13 | return has been made, upon submission of proof that the | ||||||
14 | Internal Revenue
Service has made a determination | ||||||
15 | under Section 6013(e) of the Internal
Revenue Code, for | ||||||
16 | the same taxable year, which determination relieved | ||||||
17 | the
spouse from liability for federal income taxes.
If | ||||||
18 | there is no federal income tax liability at issue for | ||||||
19 | the
same taxable year, the Department shall rely on the | ||||||
20 | provisions of Section
6013(e) to determine whether the | ||||||
21 | person requesting innocent spouse abatement of
tax, | ||||||
22 | penalty, and interest is entitled to that relief.
| ||||||
23 | (B) For tax liabilities arising on and after August | ||||||
24 | 13, 1999 or which arose prior to that date, but remain | ||||||
25 | unpaid as of that date, if
an individual
who filed a | ||||||
26 | joint return for any taxable year has made an election |
| |||||||
| |||||||
1 | under this
paragraph, the individual's liability for | ||||||
2 | any tax shown on the joint return
shall not exceed the | ||||||
3 | individual's separate return amount and the | ||||||
4 | individual's
liability for any deficiency assessed for | ||||||
5 | that taxable year shall not exceed
the portion of the | ||||||
6 | deficiency properly allocable to the individual. For
| ||||||
7 | purposes of this paragraph:
| ||||||
8 | (i) An election properly made pursuant to | ||||||
9 | Section 6015 of the Internal
Revenue Code shall | ||||||
10 | constitute an election under this paragraph, | ||||||
11 | provided that
the election shall not be effective | ||||||
12 | until the individual has notified the
Department | ||||||
13 | of the election in the form and manner prescribed | ||||||
14 | by the Department.
| ||||||
15 | (ii) If no election has been made under Section | ||||||
16 | 6015, the individual
may make an election under | ||||||
17 | this paragraph in the form and manner prescribed by
| ||||||
18 | the Department, provided that no election may be | ||||||
19 | made if the Department finds
that assets were | ||||||
20 | transferred
between individuals filing a joint | ||||||
21 | return as part of a scheme by such
individuals to | ||||||
22 | avoid payment of Illinois income tax and the | ||||||
23 | election shall not
eliminate the individual's | ||||||
24 | liability for any portion of a deficiency
| ||||||
25 | attributable to an error on the return of which the | ||||||
26 | individual had actual
knowledge as of the date of |
| |||||||
| |||||||
1 | filing.
| ||||||
2 | (iii) In determining the separate return | ||||||
3 | amount or portion of any
deficiency attributable | ||||||
4 | to an individual, the Department shall follow the
| ||||||
5 | provisions in subsections (c) and (d) of Section | ||||||
6 | 6015 of the Internal Revenue Code.
| ||||||
7 | (iv) In determining the validity of an | ||||||
8 | individual's election under
subparagraph (ii) and | ||||||
9 | in determining an electing individual's separate | ||||||
10 | return
amount or portion of any deficiency under | ||||||
11 | subparagraph (iii), any determination
made by the | ||||||
12 | Secretary of the Treasury, by the United States Tax | ||||||
13 | Court on
petition for review of a determination by | ||||||
14 | the Secretary of the Treasury, or on
appeal from | ||||||
15 | the United States Tax Court under Section 6015 of
| ||||||
16 | the Internal
Revenue Code regarding criteria for | ||||||
17 | eligibility or under subsection (d) of
Section | ||||||
18 | 6015
of the Internal Revenue Code regarding the | ||||||
19 | allocation of any item of income,
deduction, | ||||||
20 | payment, or credit between an individual making | ||||||
21 | the federal election
and that individual's spouse | ||||||
22 | shall be conclusively presumed to be correct.
With | ||||||
23 | respect to any item that is not the subject of a | ||||||
24 | determination by the
Secretary of the Treasury or | ||||||
25 | the federal courts, in any proceeding
involving | ||||||
26 | this subsection, the
individual making the |
| |||||||
| |||||||
1 | election shall have the burden of proof with | ||||||
2 | respect to
any item except that the Department | ||||||
3 | shall have the burden of proof with respect
to | ||||||
4 | items in subdivision (ii).
| ||||||
5 | (v) Any election made by an individual under | ||||||
6 | this subsection shall
apply to all years for which | ||||||
7 | that individual and the spouse named in the
| ||||||
8 | election have filed a joint return.
| ||||||
9 | (vi) After receiving a notice that the federal | ||||||
10 | election has been made
or after receiving an | ||||||
11 | election under subdivision (ii), the Department | ||||||
12 | shall
take no collection action against the | ||||||
13 | electing individual for any liability
arising from | ||||||
14 | a joint return covered by the election until the | ||||||
15 | Department has
notified the electing individual in | ||||||
16 | writing that the election is invalid or of
the | ||||||
17 | portion of the liability the Department has | ||||||
18 | allocated to the electing
individual. Within 60 | ||||||
19 | days (150 days if the individual is outside the | ||||||
20 | United
States) after the issuance of such | ||||||
21 | notification, the individual may file a
written | ||||||
22 | protest of the denial of the election or of the | ||||||
23 | Department's
determination of the liability | ||||||
24 | allocated to him or her and shall be granted a
| ||||||
25 | hearing within the Department under the provisions | ||||||
26 | of Section 908. If a
protest is filed, the |
| |||||||
| |||||||
1 | Department shall take no collection action against | ||||||
2 | the
electing individual until the decision | ||||||
3 | regarding the protest has become final
under | ||||||
4 | subsection (d) of Section 908 or, if | ||||||
5 | administrative review of the
Department's decision
| ||||||
6 | is requested under Section 1201, until the | ||||||
7 | decision of the court becomes
final.
| ||||||
8 | (d) Partnerships. Every partnership having any base income
| ||||||
9 | allocable to this State in accordance with section 305(c) shall | ||||||
10 | retain
information concerning all items of income, gain, loss | ||||||
11 | and
deduction; the names and addresses of all of the partners, | ||||||
12 | or names and
addresses of members of a limited liability | ||||||
13 | company, or other
persons who would be entitled to share in the | ||||||
14 | base income of the
partnership if distributed; the amount of | ||||||
15 | the distributive share of
each; and such other pertinent | ||||||
16 | information as the Department may by
forms or regulations | ||||||
17 | prescribe. The partnership shall make that information
| ||||||
18 | available to the Department when requested by the Department.
| ||||||
19 | (e) For taxable years ending on or after December 31, 1985, | ||||||
20 | and before
December 31, 1993, taxpayers
that are corporations | ||||||
21 | (other than Subchapter S corporations) having the
same taxable | ||||||
22 | year and that are members of the same unitary business group
| ||||||
23 | may elect to be treated as one taxpayer for purposes of any | ||||||
24 | original return,
amended return which includes the same | ||||||
25 | taxpayers of the unitary group which
joined in the election to | ||||||
26 | file the original return, extension, claim for
refund, |
| |||||||
| |||||||
1 | assessment, collection and payment and determination of the
| ||||||
2 | group's tax liability under this Act. This subsection (e) does | ||||||
3 | not permit the
election to be made for some, but not all, of | ||||||
4 | the purposes enumerated above.
For taxable years ending on or | ||||||
5 | after December 31, 1987, corporate members
(other than | ||||||
6 | Subchapter S corporations) of the same unitary business group
| ||||||
7 | making this subsection (e) election are not required to have | ||||||
8 | the same taxable
year.
| ||||||
9 | For taxable years ending on or after December 31, 1993, | ||||||
10 | taxpayers that are
corporations (other than Subchapter S | ||||||
11 | corporations) and that are members of
the same unitary business | ||||||
12 | group shall be treated as one taxpayer for purposes
of any | ||||||
13 | original return, amended return which includes the same | ||||||
14 | taxpayers of the
unitary group which joined in filing the | ||||||
15 | original return, extension, claim for
refund, assessment, | ||||||
16 | collection and payment and determination of the group's tax
| ||||||
17 | liability under this Act.
| ||||||
18 | (f) For taxable years ending prior to December 31, 2014, | ||||||
19 | the Department may promulgate regulations to permit | ||||||
20 | nonresident
individual partners of the same partnership, | ||||||
21 | nonresident Subchapter S
corporation shareholders of the same | ||||||
22 | Subchapter S corporation, and
nonresident individuals | ||||||
23 | transacting an insurance business in Illinois under
a Lloyds | ||||||
24 | plan of operation, and nonresident individual members of the | ||||||
25 | same
limited liability company that is treated as a partnership | ||||||
26 | under Section 1501
(a)(16) of this Act, to file composite |
| |||||||
| |||||||
1 | individual income tax returns
reflecting the composite income | ||||||
2 | of such individuals allocable to Illinois
and to make composite | ||||||
3 | individual income tax payments. For taxable years ending prior | ||||||
4 | to December 31, 2014, the Department may
by regulation also | ||||||
5 | permit such composite returns to include the income tax
owed by | ||||||
6 | Illinois residents attributable to their income from | ||||||
7 | partnerships,
Subchapter S corporations, insurance businesses | ||||||
8 | organized under a Lloyds
plan of operation, or limited | ||||||
9 | liability companies that are treated as
partnership under | ||||||
10 | Section 1501(a)(16) of this Act, in which case such
Illinois | ||||||
11 | residents will be permitted to claim credits on their | ||||||
12 | individual
returns for their shares of the composite tax | ||||||
13 | payments. This paragraph of
subsection (f) applies to taxable | ||||||
14 | years ending on or after December 31, 1987 and ending prior to | ||||||
15 | December 31, 2014.
| ||||||
16 | For taxable years ending on or after December 31, 1999, the | ||||||
17 | Department may,
by regulation, permit any persons transacting | ||||||
18 | an insurance business
organized under a Lloyds plan of | ||||||
19 | operation to file composite returns reflecting
the income of | ||||||
20 | such persons allocable to Illinois and the tax rates applicable
| ||||||
21 | to such persons under Section 201 and to make composite tax | ||||||
22 | payments and shall,
by regulation, also provide that the income | ||||||
23 | and apportionment factors
attributable to the transaction of an | ||||||
24 | insurance business organized under a
Lloyds plan of operation | ||||||
25 | by any person joining in the filing of a composite
return | ||||||
26 | shall, for purposes of allocating and apportioning income under |
| |||||||
| |||||||
1 | Article
3 of this Act and computing net income under Section | ||||||
2 | 202 of this Act, be
excluded from any other income and | ||||||
3 | apportionment factors of that person or of
any unitary business | ||||||
4 | group, as defined in subdivision (a)(27) of Section 1501,
to | ||||||
5 | which that person may belong.
| ||||||
6 | For taxable years ending on or after December 31, 2008, | ||||||
7 | every nonresident shall be allowed a credit against his or her | ||||||
8 | liability under subsections (a) and (b) of Section 201 for any | ||||||
9 | amount of tax reported on a composite return and paid on his or | ||||||
10 | her behalf under this subsection (f). Residents (other than | ||||||
11 | persons transacting an insurance business organized under a | ||||||
12 | Lloyds plan of operation) may claim a credit for taxes reported | ||||||
13 | on a composite return and paid on their behalf under this | ||||||
14 | subsection (f) only as permitted by the Department by rule.
| ||||||
15 | (f-5) For taxable years ending on or after December 31, | ||||||
16 | 2008, the Department may adopt rules to provide that, when a | ||||||
17 | partnership or Subchapter S corporation has made an error in | ||||||
18 | determining the amount of any item of income, deduction, | ||||||
19 | addition, subtraction, or credit required to be reported on its | ||||||
20 | return that affects the liability imposed under this Act on a | ||||||
21 | partner or shareholder, the partnership or Subchapter S | ||||||
22 | corporation may report the changes in liabilities of its | ||||||
23 | partners or shareholders and claim a refund of the resulting | ||||||
24 | overpayments, or pay the resulting underpayments, on behalf of | ||||||
25 | its partners and shareholders.
| ||||||
26 | (g) The Department may adopt rules to authorize the |
| |||||||
| |||||||
1 | electronic filing of
any return required to be filed under this | ||||||
2 | Section.
| ||||||
3 | (Source: P.A. 97-507, eff. 8-23-11; 98-478, eff. 1-1-14.)
| ||||||
4 | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | ||||||
5 | Sec. 901. Collection Authority. | ||||||
6 | (a) In general. | ||||||
7 | The Department shall collect the taxes imposed by this Act. | ||||||
8 | The Department
shall collect certified past due child support | ||||||
9 | amounts under Section 2505-650
of the Department of Revenue Law | ||||||
10 | (20 ILCS 2505/2505-650). Except as
provided in subsections (c), | ||||||
11 | (e), (f), and (g) of this Section, money collected
pursuant to | ||||||
12 | subsections (a) and (b) of Section 201 of this Act shall be
| ||||||
13 | paid into the General Revenue Fund in the State treasury; money
| ||||||
14 | collected pursuant to subsections (c) and (d) of Section 201 of | ||||||
15 | this Act
shall be paid into the Personal Property Tax | ||||||
16 | Replacement Fund, a special
fund in the State Treasury; and | ||||||
17 | money collected under Section 2505-650 of the
Department of | ||||||
18 | Revenue Law (20 ILCS 2505/2505-650) shall be paid
into the
| ||||||
19 | Child Support Enforcement Trust Fund, a special fund outside | ||||||
20 | the State
Treasury, or
to the State
Disbursement Unit | ||||||
21 | established under Section 10-26 of the Illinois Public Aid
| ||||||
22 | Code, as directed by the Department of Healthcare and Family | ||||||
23 | Services. | ||||||
24 | (b) Local Government Distributive Fund. | ||||||
25 | Beginning August 1, 1969, and continuing through June 30, |
| |||||||
| |||||||
1 | 1994, the Treasurer
shall transfer each month from the General | ||||||
2 | Revenue Fund to a special fund in
the State treasury, to be | ||||||
3 | known as the "Local Government Distributive Fund", an
amount | ||||||
4 | equal to 1/12 of the net revenue realized from the tax imposed | ||||||
5 | by
subsections (a) and (b) of Section 201 of this Act during | ||||||
6 | the preceding month.
Beginning July 1, 1994, and continuing | ||||||
7 | through June 30, 1995, the Treasurer
shall transfer each month | ||||||
8 | from the General Revenue Fund to the Local Government
| ||||||
9 | Distributive Fund an amount equal to 1/11 of the net revenue | ||||||
10 | realized from the
tax imposed by subsections (a) and (b) of | ||||||
11 | Section 201 of this Act during the
preceding month. Beginning | ||||||
12 | July 1, 1995 and continuing through January 31, 2011, the | ||||||
13 | Treasurer shall transfer each
month from the General Revenue | ||||||
14 | Fund to the Local Government Distributive Fund
an amount equal | ||||||
15 | to the net of (i) 1/10 of the net revenue realized from the
tax | ||||||
16 | imposed by
subsections (a) and (b) of Section 201 of the | ||||||
17 | Illinois Income Tax Act during
the preceding month
(ii) minus, | ||||||
18 | beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | ||||||
19 | and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | ||||||
20 | and continuing through January 31, 2016, January 31, 2015, the | ||||||
21 | Treasurer shall transfer each month from the General Revenue | ||||||
22 | Fund to the Local Government Distributive Fund an amount equal | ||||||
23 | to the sum of (i) 6% (10% of the ratio of the 3% individual | ||||||
24 | income tax rate prior to 2011 to the 5% individual income tax | ||||||
25 | rate after 2010) of the net revenue realized from the tax | ||||||
26 | imposed by subsections (a) and (b) of Section 201 of this Act |
| |||||||
| |||||||
1 | upon individuals, trusts, and estates during the preceding | ||||||
2 | month and (ii) 6.86% (10% of the ratio of the 4.8% corporate | ||||||
3 | income tax rate prior to 2011 to the 7% corporate income tax | ||||||
4 | rate after 2010) of the net revenue realized from the tax | ||||||
5 | imposed by subsections (a) and (b) of Section 201 of this Act | ||||||
6 | upon corporations during the preceding month. Beginning | ||||||
7 | February 1, 2016 February 1, 2015 and continuing through | ||||||
8 | January 31, 2025, the Treasurer shall transfer each month from | ||||||
9 | the General Revenue Fund to the Local Government Distributive | ||||||
10 | Fund an amount equal 1/12 of the net revenue realized from the | ||||||
11 | tax imposed by subsections (a) and (b) of Section 201 of the | ||||||
12 | Illinois Income Tax Act during the preceding month. to the sum | ||||||
13 | of (i) 8% (10% of the ratio of the 3% individual income tax | ||||||
14 | rate prior to 2011 to the 3.75% individual income tax rate | ||||||
15 | after 2014) of the net revenue realized from the tax imposed by | ||||||
16 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
17 | individuals, trusts, and estates during the preceding month and | ||||||
18 | (ii) 9.14% (10% of the ratio of the 4.8% corporate income tax | ||||||
19 | rate prior to 2011 to the 5.25% corporate income tax rate after | ||||||
20 | 2014) of the net revenue realized from the tax imposed by | ||||||
21 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
22 | corporations during the preceding month. Beginning February 1, | ||||||
23 | 2025, the Treasurer shall transfer each month from the General | ||||||
24 | Revenue Fund to the Local Government Distributive Fund an | ||||||
25 | amount equal to the sum of (i) 9.23% (10% of the ratio of the 3% | ||||||
26 | individual income tax rate prior to 2011 to the 3.25% |
| |||||||
| |||||||
1 | individual income tax rate after 2024) of the net revenue | ||||||
2 | realized from the tax imposed by subsections (a) and (b) of | ||||||
3 | Section 201 of this Act upon individuals, trusts, and estates | ||||||
4 | during the preceding month and (ii) 10% of the net revenue | ||||||
5 | realized from the tax imposed by subsections (a) and (b) of | ||||||
6 | Section 201 of this Act upon corporations during the preceding | ||||||
7 | month. Net revenue realized for a month shall be defined as the
| ||||||
8 | revenue from the tax imposed by subsections (a) and (b) of | ||||||
9 | Section 201 of this
Act which is deposited in the General | ||||||
10 | Revenue Fund, the Education Assistance
Fund, the Income Tax | ||||||
11 | Surcharge Local Government Distributive Fund, the Fund for the | ||||||
12 | Advancement of Education, and the Commitment to Human Services | ||||||
13 | Fund during the
month minus the amount paid out of the General | ||||||
14 | Revenue Fund in State warrants
during that same month as | ||||||
15 | refunds to taxpayers for overpayment of liability
under the tax | ||||||
16 | imposed by subsections (a) and (b) of Section 201 of this Act. | ||||||
17 | (c) Deposits Into Income Tax Refund Fund. | ||||||
18 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
19 | Department shall
deposit a percentage of the amounts | ||||||
20 | collected pursuant to subsections (a) ,
and (b)(1), (2), and | ||||||
21 | (3), (4), (5), and (5.1) of Section 201 of this Act into a | ||||||
22 | fund in the State
treasury known as the Income Tax Refund | ||||||
23 | Fund. The Department shall deposit 6%
of such amounts | ||||||
24 | during the period beginning January 1, 1989 and ending on | ||||||
25 | June
30, 1989. Beginning with State fiscal year 1990 and | ||||||
26 | for each fiscal year
thereafter, the percentage deposited |
| |||||||
| |||||||
1 | into the Income Tax Refund Fund during a
fiscal year shall | ||||||
2 | be the Annual Percentage. For fiscal years 1999 through
| ||||||
3 | 2001, the Annual Percentage shall be 7.1%.
For fiscal year | ||||||
4 | 2003, the Annual Percentage shall be 8%.
For fiscal year | ||||||
5 | 2004, the Annual Percentage shall be 11.7%. Upon the | ||||||
6 | effective date of this amendatory Act of the 93rd General | ||||||
7 | Assembly, the Annual Percentage shall be 10% for fiscal | ||||||
8 | year 2005. For fiscal year 2006, the Annual Percentage | ||||||
9 | shall be 9.75%. For fiscal
year 2007, the Annual Percentage | ||||||
10 | shall be 9.75%. For fiscal year 2008, the Annual Percentage | ||||||
11 | shall be 7.75%. For fiscal year 2009, the Annual Percentage | ||||||
12 | shall be 9.75%. For fiscal year 2010, the Annual Percentage | ||||||
13 | shall be 9.75%. For fiscal year 2011, the Annual Percentage | ||||||
14 | shall be 8.75%. For fiscal year 2012, the Annual Percentage | ||||||
15 | shall be 8.75%. For fiscal year 2013, the Annual Percentage | ||||||
16 | shall be 9.75%. For fiscal year 2014, the Annual Percentage | ||||||
17 | shall be 9.5%. For all other
fiscal years, the
Annual | ||||||
18 | Percentage shall be calculated as a fraction, the numerator | ||||||
19 | of which
shall be the amount of refunds approved for | ||||||
20 | payment by the Department during
the preceding fiscal year | ||||||
21 | as a result of overpayment of tax liability under
| ||||||
22 | subsections (a) , and (b)(1), (2), and (3) , (4), (5), and | ||||||
23 | (5.1) of Section 201 of this Act plus the
amount of such | ||||||
24 | refunds remaining approved but unpaid at the end of the
| ||||||
25 | preceding fiscal year, minus the amounts transferred into | ||||||
26 | the Income Tax
Refund Fund from the Tobacco Settlement |
| |||||||
| |||||||
1 | Recovery Fund, and
the denominator of which shall be the | ||||||
2 | amounts which will be collected pursuant
to subsections | ||||||
3 | (a) , and (b)(1), (2), and (3) , (4), (5), and (5.1) of | ||||||
4 | Section 201 of this Act during
the preceding fiscal year; | ||||||
5 | except that in State fiscal year 2002, the Annual
| ||||||
6 | Percentage shall in no event exceed 7.6%. The Director of | ||||||
7 | Revenue shall
certify the Annual Percentage to the | ||||||
8 | Comptroller on the last business day of
the fiscal year | ||||||
9 | immediately preceding the fiscal year for which it is to be
| ||||||
10 | effective. | ||||||
11 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
12 | Department shall
deposit a percentage of the amounts | ||||||
13 | collected pursuant to subsections (a) ,
and (b)(6), (7), and | ||||||
14 | (8), (9), (10), and (11), (c) and (d) of Section 201
of | ||||||
15 | this Act into a fund in the State treasury known as the | ||||||
16 | Income Tax
Refund Fund. The Department shall deposit 18% of | ||||||
17 | such amounts during the
period beginning January 1, 1989 | ||||||
18 | and ending on June 30, 1989. Beginning
with State fiscal | ||||||
19 | year 1990 and for each fiscal year thereafter, the
| ||||||
20 | percentage deposited into the Income Tax Refund Fund during | ||||||
21 | a fiscal year
shall be the Annual Percentage. For fiscal | ||||||
22 | years 1999, 2000, and 2001, the
Annual Percentage shall be | ||||||
23 | 19%.
For fiscal year 2003, the Annual Percentage shall be | ||||||
24 | 27%. For fiscal year
2004, the Annual Percentage shall be | ||||||
25 | 32%.
Upon the effective date of this amendatory Act of the | ||||||
26 | 93rd General Assembly, the Annual Percentage shall be 24% |
| |||||||
| |||||||
1 | for fiscal year 2005.
For fiscal year 2006, the Annual | ||||||
2 | Percentage shall be 20%. For fiscal
year 2007, the Annual | ||||||
3 | Percentage shall be 17.5%. For fiscal year 2008, the Annual | ||||||
4 | Percentage shall be 15.5%. For fiscal year 2009, the Annual | ||||||
5 | Percentage shall be 17.5%. For fiscal year 2010, the Annual | ||||||
6 | Percentage shall be 17.5%. For fiscal year 2011, the Annual | ||||||
7 | Percentage shall be 17.5%. For fiscal year 2012, the Annual | ||||||
8 | Percentage shall be 17.5%. For fiscal year 2013, the Annual | ||||||
9 | Percentage shall be 14%. For fiscal year 2014, the Annual | ||||||
10 | Percentage shall be 13.4%. For all other fiscal years, the | ||||||
11 | Annual
Percentage shall be calculated
as a fraction, the | ||||||
12 | numerator of which shall be the amount of refunds
approved | ||||||
13 | for payment by the Department during the preceding fiscal | ||||||
14 | year as
a result of overpayment of tax liability under | ||||||
15 | subsections (a) , and (b)(6),
(7), and (8), (9), (10), and | ||||||
16 | (11), (c) and (d) of Section 201 of this Act plus the
| ||||||
17 | amount of such refunds remaining approved but unpaid at the | ||||||
18 | end of the
preceding fiscal year, and the denominator of
| ||||||
19 | which shall be the amounts which will be collected pursuant | ||||||
20 | to subsections (a) ,
and (b)(6), (7), and (8), (9), (10), | ||||||
21 | and (11), (c) and (d) of Section 201 of this Act during the
| ||||||
22 | preceding fiscal year; except that in State fiscal year | ||||||
23 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
24 | The Director of Revenue shall
certify the Annual Percentage | ||||||
25 | to the Comptroller on the last business day of
the fiscal | ||||||
26 | year immediately preceding the fiscal year for which it is |
| |||||||
| |||||||
1 | to be
effective. | ||||||
2 | (3) The Comptroller shall order transferred and the | ||||||
3 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
4 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||||||
5 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
6 | (iii) $35,000,000 in January, 2003. | ||||||
7 | (d) Expenditures from Income Tax Refund Fund. | ||||||
8 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
9 | Refund Fund
shall be expended exclusively for the purpose | ||||||
10 | of paying refunds resulting
from overpayment of tax | ||||||
11 | liability under Section 201 of this Act, for paying
rebates | ||||||
12 | under Section 208.1 in the event that the amounts in the | ||||||
13 | Homeowners'
Tax Relief Fund are insufficient for that | ||||||
14 | purpose,
and for
making transfers pursuant to this | ||||||
15 | subsection (d). | ||||||
16 | (2) The Director shall order payment of refunds | ||||||
17 | resulting from
overpayment of tax liability under Section | ||||||
18 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
19 | extent that amounts collected pursuant
to Section 201 of | ||||||
20 | this Act and transfers pursuant to this subsection (d)
and | ||||||
21 | item (3) of subsection (c) have been deposited and retained | ||||||
22 | in the
Fund. | ||||||
23 | (3) As soon as possible after the end of each fiscal | ||||||
24 | year, the Director
shall
order transferred and the State | ||||||
25 | Treasurer and State Comptroller shall
transfer from the | ||||||
26 | Income Tax Refund Fund to the Personal Property Tax
|
| |||||||
| |||||||
1 | Replacement Fund an amount, certified by the Director to | ||||||
2 | the Comptroller,
equal to the excess of the amount | ||||||
3 | collected pursuant to subsections (c) and
(d) of Section | ||||||
4 | 201 of this Act deposited into the Income Tax Refund Fund
| ||||||
5 | during the fiscal year over the amount of refunds resulting | ||||||
6 | from
overpayment of tax liability under subsections (c) and | ||||||
7 | (d) of Section 201
of this Act paid from the Income Tax | ||||||
8 | Refund Fund during the fiscal year. | ||||||
9 | (4) As soon as possible after the end of each fiscal | ||||||
10 | year, the Director shall
order transferred and the State | ||||||
11 | Treasurer and State Comptroller shall
transfer from the | ||||||
12 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
13 | Refund Fund an amount, certified by the Director to the | ||||||
14 | Comptroller, equal
to the excess of the amount of refunds | ||||||
15 | resulting from overpayment of tax
liability under | ||||||
16 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
17 | from the Income Tax Refund Fund during the fiscal year over | ||||||
18 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
19 | Section 201 of this Act
deposited into the Income Tax | ||||||
20 | Refund Fund during the fiscal year. | ||||||
21 | (4.5) As soon as possible after the end of fiscal year | ||||||
22 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
23 | order transferred and the State Treasurer and
State | ||||||
24 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
25 | to the General
Revenue Fund any surplus remaining in the | ||||||
26 | Income Tax Refund Fund as of the end
of such fiscal year; |
| |||||||
| |||||||
1 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
2 | attributable to transfers under item (3) of subsection (c) | ||||||
3 | less refunds
resulting from the earned income tax credit. | ||||||
4 | (5) This Act shall constitute an irrevocable and | ||||||
5 | continuing
appropriation from the Income Tax Refund Fund | ||||||
6 | for the purpose of paying
refunds upon the order of the | ||||||
7 | Director in accordance with the provisions of
this Section. | ||||||
8 | (e) Deposits into the Education Assistance Fund and the | ||||||
9 | Income Tax
Surcharge Local Government Distributive Fund. | ||||||
10 | On July 1, 1991, and thereafter, of the amounts collected | ||||||
11 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
12 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
13 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
14 | State Treasury. Beginning July 1, 1991,
and continuing through | ||||||
15 | January 31, 1993, of the amounts collected pursuant to
| ||||||
16 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
17 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
18 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
19 | Local Government Distributive Fund in the State
Treasury. | ||||||
20 | Beginning February 1, 1993 and continuing through June 30, | ||||||
21 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
22 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
23 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
24 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
25 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
26 | 1993, and
continuing through June 30, 1994, of the amounts |
| |||||||
| |||||||
1 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
2 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
3 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
4 | Local Government Distributive Fund in the State Treasury. | ||||||
5 | (f) Deposits into the Fund for the Advancement of | ||||||
6 | Education. Beginning February 1, 2015, the Department shall | ||||||
7 | deposit the following portions of the revenue realized from the | ||||||
8 | tax imposed upon individuals, trusts, and estates by | ||||||
9 | subsections (a) and (b) of Section 201 of this Act during the | ||||||
10 | preceding month, minus deposits into the Income Tax Refund | ||||||
11 | Fund, into the Fund for the Advancement of Education: | ||||||
12 | (1) beginning February 1, 2015, and prior to February | ||||||
13 | 1, 2025, 1/30; and | ||||||
14 | (2) beginning February 1, 2025, 1/26. | ||||||
15 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
16 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
17 | the Department shall not make the deposits required by this | ||||||
18 | subsection (f) on or after the effective date of the reduction. | ||||||
19 | (g) Deposits into the Commitment to Human Services Fund. | ||||||
20 | Beginning February 1, 2015, the Department shall deposit the | ||||||
21 | following portions of the revenue realized from the tax imposed | ||||||
22 | upon individuals, trusts, and estates by subsections (a) and | ||||||
23 | (b) of Section 201 of this Act during the preceding month, | ||||||
24 | minus deposits into the Income Tax Refund Fund, into the | ||||||
25 | Commitment to Human Services Fund: | ||||||
26 | (1) beginning February 1, 2015, and prior to February |
| |||||||
| |||||||
1 | 1, 2025, 1/30; and | ||||||
2 | (2) beginning February 1, 2025, 1/26. | ||||||
3 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
4 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
5 | the Department shall not make the deposits required by this | ||||||
6 | subsection (g) on or after the effective date of the reduction. | ||||||
7 | (Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24, | ||||||
8 | eff. 6-19-13.)".
|