Bill Text: IL SB1681 | 2009-2010 | 96th General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Decreases the rate of tax on individuals and on trusts and estates from 3% to 2.85% in 2009, 2.7% in 2010, and 2.5% in 2011 and thereafter. Decreases the rate of tax on corporations from 4.8% to 4.56% in 2009, 4.32% in 2010, and 4% in 2011 and thereafter. Makes corresponding changes. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-04-03 - Rule 3-9(a) / Re-referred to Assignments [SB1681 Detail]
Download: Illinois-2009-SB1681-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||||||||||
5 | changing Sections 201 and 901 and by adding Sections 202.5, | ||||||||||||||||||||||||||||||||
6 | 202.5a, and 202.5b as follows:
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7 | (35 ILCS 5/201) (from Ch. 120, par. 2-201)
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8 | Sec. 201. Tax Imposed.
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9 | (a) In general. A tax measured by net income is hereby | ||||||||||||||||||||||||||||||||
10 | imposed on every
individual, corporation, trust and estate for | ||||||||||||||||||||||||||||||||
11 | each taxable year ending
after July 31, 1969 on the privilege | ||||||||||||||||||||||||||||||||
12 | of earning or receiving income in or
as a resident of this | ||||||||||||||||||||||||||||||||
13 | State. Such tax shall be in addition to all other
occupation or | ||||||||||||||||||||||||||||||||
14 | privilege taxes imposed by this State or by any municipal
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15 | corporation or political subdivision thereof.
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16 | (b) Rates. The tax imposed by subsection (a) of this | ||||||||||||||||||||||||||||||||
17 | Section shall be
determined as follows, except as adjusted by | ||||||||||||||||||||||||||||||||
18 | subsection (d-1):
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19 | (1) In the case of an individual, trust or estate, for | ||||||||||||||||||||||||||||||||
20 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||||||||||||||||||||||||||||
21 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||||||||||||||||||||||||||||
22 | year.
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23 | (2) In the case of an individual, trust or estate, for |
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1 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
2 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
3 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
4 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
5 | 3% of the
taxpayer's net income for the period after June | ||||||
6 | 30, 1989, as calculated
under Section 202.3.
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7 | (3) In the case of an individual, trust or estate, for | ||||||
8 | taxable years
beginning after June 30, 1989 and ending on
| ||||||
9 | or before December 31, 2008 , an amount equal to 3% of the | ||||||
10 | taxpayer's net
income for the taxable year.
| ||||||
11 | (4) In the case of an individual, trust, or estate, for
| ||||||
12 | taxable years beginning prior to January 1, 2009 and ending
| ||||||
13 | after December 31, 2008, an amount equal to the sum of (i)
| ||||||
14 | 3% of the taxpayer's net income for the period prior to
| ||||||
15 | January 1, 2009, as calculated under Section 202.5, and
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16 | (ii) 2.85% of the taxpayer's net income for the period | ||||||
17 | after
December 31, 2008, as calculated under Section 202.5 | ||||||
18 | (Blank) . | ||||||
19 | (4.1) In the case of an individual, trust, or estate, | ||||||
20 | for
taxable years beginning on January 1, 2009 and ending
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21 | on December 31, 2009, an amount equal to 2.85% of the | ||||||
22 | taxpayer's net income for the taxable
year. | ||||||
23 | (4.2) In the case of an individual, trust, or estate, | ||||||
24 | for
taxable years beginning prior to January 1, 2010 and | ||||||
25 | ending
after December 31, 2009, an amount equal to the sum | ||||||
26 | of (i)
2.85% of the taxpayer's net income for the period |
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1 | prior to
January 1, 2010, as calculated under Section | ||||||
2 | 202.5, and
(ii) 2.7% of the taxpayer's net income for the | ||||||
3 | period after
December 31, 2009, as calculated under Section | ||||||
4 | 202.5a. | ||||||
5 | (4.3) In the case of an individual, trust, or estate, | ||||||
6 | for
taxable years beginning on January 1, 2010 and ending
| ||||||
7 | on December 31, 2010, an amount equal to 2.7% of the | ||||||
8 | taxpayer's net income for the taxable
year. | ||||||
9 | (4.4) In the case of an individual, trust, or estate, | ||||||
10 | for
taxable years beginning prior to January 1, 2011 and | ||||||
11 | ending
after December 31, 2010, an amount equal to the sum | ||||||
12 | of (i)
2.7% of the taxpayer's net income for the period | ||||||
13 | prior to
January 1, 2011, as calculated under Section | ||||||
14 | 202.5, and
(ii) 2.5% of the taxpayer's net income for the | ||||||
15 | period after
December 31, 2010, as calculated under Section | ||||||
16 | 202.5b.
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17 | (5) In the case of an individual, trust or estate, for
| ||||||
18 | taxable years beginning after December 31, 2010, an amount
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19 | equal to 2.5% of the taxpayer's net income for the taxable
| ||||||
20 | year (Blank) .
| ||||||
21 | (6) In the case of a corporation, for taxable years
| ||||||
22 | ending prior to July 1, 1989, an amount equal to 4% of the
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23 | taxpayer's net income for the taxable year.
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24 | (7) In the case of a corporation, for taxable years | ||||||
25 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
26 | 1989, an amount equal to the sum of
(i) 4% of the |
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1 | taxpayer's net income for the period prior to July 1, 1989,
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2 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
3 | taxpayer's net
income for the period after June 30, 1989, | ||||||
4 | as calculated under Section
202.3.
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5 | (8) In the case of a corporation, for taxable years | ||||||
6 | beginning after
June 30, 1989 and ending on
or before | ||||||
7 | December 31, 2008 , an amount equal to 4.8% of the | ||||||
8 | taxpayer's net income for the
taxable year.
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9 | (9) In the case of a corporation, for
taxable years | ||||||
10 | beginning prior to January 1, 2009 and ending
after | ||||||
11 | December 31, 2008, an amount equal to the sum of (i)
4.8% | ||||||
12 | of the taxpayer's net income for the period prior to
| ||||||
13 | January 1, 2009, as calculated under Section 202.5, and
| ||||||
14 | (ii) 4.56% of the taxpayer's net income for the period | ||||||
15 | after
December 31, 2008, as calculated under Section 202.5. | ||||||
16 | (10) In the case of a corporation, for
taxable years | ||||||
17 | beginning on January 1, 2009 and ending
on December 31, | ||||||
18 | 2009, an amount equal to 4.56% of the taxpayer's net income | ||||||
19 | for the taxable
year. | ||||||
20 | (11) In the case of a corporation, for
taxable years | ||||||
21 | beginning prior to January 1, 2010 and ending
after | ||||||
22 | December 31, 2009, an amount equal to the sum of (i)
4.56% | ||||||
23 | of the taxpayer's net income for the period prior to
| ||||||
24 | January 1, 2010, as calculated under Section 202.5a, and
| ||||||
25 | (ii) 4.32% of the taxpayer's net income for the period | ||||||
26 | after
December 31, 2009, as calculated under Section |
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| |||||||
1 | 202.5a. | ||||||
2 | (12) In the case of a corporation, for
taxable years | ||||||
3 | beginning on January 1, 2010 and ending
on December 31, | ||||||
4 | 2010, an amount equal to 4.32% of the taxpayer's net income | ||||||
5 | for the taxable
year. | ||||||
6 | (13) In the case of a corporation, for
taxable years | ||||||
7 | beginning prior to January 1, 2011 and ending
after | ||||||
8 | December 31, 2010, an amount equal to the sum of (i)
4.32% | ||||||
9 | of the taxpayer's net income for the period prior to
| ||||||
10 | January 1, 2011, as calculated under Section 202.5b, and
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11 | (ii) 4% of the taxpayer's net income for the period after
| ||||||
12 | December 31, 2010, as calculated under Section 202.5b. | ||||||
13 | (14) In the case of a corporation, for
taxable years | ||||||
14 | beginning after December 31, 2010, an amount
equal to 4% of | ||||||
15 | the taxpayer's net income for the taxable
year. | ||||||
16 | (c) Personal Property Tax Replacement Income Tax.
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17 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
18 | income
tax, there is also hereby imposed the Personal Property | ||||||
19 | Tax Replacement
Income Tax measured by net income on every | ||||||
20 | corporation (including Subchapter
S corporations), partnership | ||||||
21 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
22 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
23 | income in or as a resident of this State. The Personal Property
| ||||||
24 | Tax Replacement Income Tax shall be in addition to the income | ||||||
25 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
26 | addition to all other
occupation or privilege taxes imposed by |
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1 | this State or by any municipal
corporation or political | ||||||
2 | subdivision thereof.
| ||||||
3 | (d) Additional Personal Property Tax Replacement Income | ||||||
4 | Tax Rates.
The personal property tax replacement income tax | ||||||
5 | imposed by this subsection
and subsection (c) of this Section | ||||||
6 | in the case of a corporation, other
than a Subchapter S | ||||||
7 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
8 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
9 | income for the taxable year, except that
beginning on January | ||||||
10 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
11 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
12 | partnership, trust or a Subchapter S corporation shall be an | ||||||
13 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
14 | for the taxable year.
| ||||||
15 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
16 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
17 | Illinois Insurance Code,
whose state or country of domicile | ||||||
18 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
19 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
20 | are 50% or more of its total insurance
premiums as determined | ||||||
21 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
22 | that for purposes of this determination premiums from | ||||||
23 | reinsurance do
not include premiums from inter-affiliate | ||||||
24 | reinsurance arrangements),
beginning with taxable years ending | ||||||
25 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
26 | imposed by subsections (b) and (d) shall be reduced (but not
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1 | increased) to the rate at which the total amount of tax imposed | ||||||
2 | under this Act,
net of all credits allowed under this Act, | ||||||
3 | shall equal (i) the total amount of
tax that would be imposed | ||||||
4 | on the foreign insurer's net income allocable to
Illinois for | ||||||
5 | the taxable year by such foreign insurer's state or country of
| ||||||
6 | domicile if that net income were subject to all income taxes | ||||||
7 | and taxes
measured by net income imposed by such foreign | ||||||
8 | insurer's state or country of
domicile, net of all credits | ||||||
9 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
10 | income by the foreign insurer's state of domicile.
For the | ||||||
11 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
12 | a
mutual insurer under common management.
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13 | (1) For the purposes of subsection (d-1), in no event | ||||||
14 | shall the sum of the
rates of tax imposed by subsections | ||||||
15 | (b) and (d) be reduced below the rate at
which the sum of:
| ||||||
16 | (A) the total amount of tax imposed on such foreign | ||||||
17 | insurer under
this Act for a taxable year, net of all | ||||||
18 | credits allowed under this Act, plus
| ||||||
19 | (B) the privilege tax imposed by Section 409 of the | ||||||
20 | Illinois Insurance
Code, the fire insurance company | ||||||
21 | tax imposed by Section 12 of the Fire
Investigation | ||||||
22 | Act, and the fire department taxes imposed under | ||||||
23 | Section 11-10-1
of the Illinois Municipal Code,
| ||||||
24 | equals 1.25% for taxable years ending prior to December 31, | ||||||
25 | 2003, or
1.75% for taxable years ending on or after | ||||||
26 | December 31, 2003, of the net
taxable premiums written for |
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1 | the taxable year,
as described by subsection (1) of Section | ||||||
2 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
3 | no event increase the rates imposed under subsections
(b) | ||||||
4 | and (d).
| ||||||
5 | (2) Any reduction in the rates of tax imposed by this | ||||||
6 | subsection shall be
applied first against the rates imposed | ||||||
7 | by subsection (b) and only after the
tax imposed by | ||||||
8 | subsection (a) net of all credits allowed under this | ||||||
9 | Section
other than the credit allowed under subsection (i) | ||||||
10 | has been reduced to zero,
against the rates imposed by | ||||||
11 | subsection (d).
| ||||||
12 | This subsection (d-1) is exempt from the provisions of | ||||||
13 | Section 250.
| ||||||
14 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
15 | against the Personal Property Tax Replacement Income Tax for
| ||||||
16 | investment in qualified property.
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17 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
18 | of
the basis of qualified property placed in service during | ||||||
19 | the taxable year,
provided such property is placed in | ||||||
20 | service on or after
July 1, 1984. There shall be allowed an | ||||||
21 | additional credit equal
to .5% of the basis of qualified | ||||||
22 | property placed in service during the
taxable year, | ||||||
23 | provided such property is placed in service on or
after | ||||||
24 | July 1, 1986, and the taxpayer's base employment
within | ||||||
25 | Illinois has increased by 1% or more over the preceding | ||||||
26 | year as
determined by the taxpayer's employment records |
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1 | filed with the
Illinois Department of Employment Security. | ||||||
2 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
3 | met the 1% growth in base employment for
the first year in | ||||||
4 | which they file employment records with the Illinois
| ||||||
5 | Department of Employment Security. The provisions added to | ||||||
6 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
7 | Act 87-895) shall be
construed as declaratory of existing | ||||||
8 | law and not as a new enactment. If,
in any year, the | ||||||
9 | increase in base employment within Illinois over the
| ||||||
10 | preceding year is less than 1%, the additional credit shall | ||||||
11 | be limited to that
percentage times a fraction, the | ||||||
12 | numerator of which is .5% and the denominator
of which is | ||||||
13 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
14 | not be
allowed to the extent that it would reduce a | ||||||
15 | taxpayer's liability in any tax
year below zero, nor may | ||||||
16 | any credit for qualified property be allowed for any
year | ||||||
17 | other than the year in which the property was placed in | ||||||
18 | service in
Illinois. For tax years ending on or after | ||||||
19 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
20 | credit shall be allowed for the tax year in
which the | ||||||
21 | property is placed in service, or, if the amount of the | ||||||
22 | credit
exceeds the tax liability for that year, whether it | ||||||
23 | exceeds the original
liability or the liability as later | ||||||
24 | amended, such excess may be carried
forward and applied to | ||||||
25 | the tax liability of the 5 taxable years following
the | ||||||
26 | excess credit years if the taxpayer (i) makes investments |
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1 | which cause
the creation of a minimum of 2,000 full-time | ||||||
2 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
3 | enterprise zone established pursuant to the Illinois
| ||||||
4 | Enterprise Zone Act and (iii) is certified by the | ||||||
5 | Department of Commerce
and Community Affairs (now | ||||||
6 | Department of Commerce and Economic Opportunity) as | ||||||
7 | complying with the requirements specified in
clause (i) and | ||||||
8 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
9 | Community Affairs (now Department of Commerce and Economic | ||||||
10 | Opportunity) shall notify the Department of Revenue of all | ||||||
11 | such
certifications immediately. For tax years ending | ||||||
12 | after December 31, 1988,
the credit shall be allowed for | ||||||
13 | the tax year in which the property is
placed in service, | ||||||
14 | or, if the amount of the credit exceeds the tax
liability | ||||||
15 | for that year, whether it exceeds the original liability or | ||||||
16 | the
liability as later amended, such excess may be carried | ||||||
17 | forward and applied
to the tax liability of the 5 taxable | ||||||
18 | years following the excess credit
years. The credit shall | ||||||
19 | be applied to the earliest year for which there is
a | ||||||
20 | liability. If there is credit from more than one tax year | ||||||
21 | that is
available to offset a liability, earlier credit | ||||||
22 | shall be applied first.
| ||||||
23 | (2) The term "qualified property" means property | ||||||
24 | which:
| ||||||
25 | (A) is tangible, whether new or used, including | ||||||
26 | buildings and structural
components of buildings and |
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1 | signs that are real property, but not including
land or | ||||||
2 | improvements to real property that are not a structural | ||||||
3 | component of a
building such as landscaping, sewer | ||||||
4 | lines, local access roads, fencing, parking
lots, and | ||||||
5 | other appurtenances;
| ||||||
6 | (B) is depreciable pursuant to Section 167 of the | ||||||
7 | Internal Revenue Code,
except that "3-year property" | ||||||
8 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
9 | eligible for the credit provided by this subsection | ||||||
10 | (e);
| ||||||
11 | (C) is acquired by purchase as defined in Section | ||||||
12 | 179(d) of
the Internal Revenue Code;
| ||||||
13 | (D) is used in Illinois by a taxpayer who is | ||||||
14 | primarily engaged in
manufacturing, or in mining coal | ||||||
15 | or fluorite, or in retailing, or was placed in service | ||||||
16 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
17 | Zone established pursuant to the River Edge | ||||||
18 | Redevelopment Zone Act; and
| ||||||
19 | (E) has not previously been used in Illinois in | ||||||
20 | such a manner and by
such a person as would qualify for | ||||||
21 | the credit provided by this subsection
(e) or | ||||||
22 | subsection (f).
| ||||||
23 | (3) For purposes of this subsection (e), | ||||||
24 | "manufacturing" means
the material staging and production | ||||||
25 | of tangible personal property by
procedures commonly | ||||||
26 | regarded as manufacturing, processing, fabrication, or
|
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| |||||||
1 | assembling which changes some existing material into new | ||||||
2 | shapes, new
qualities, or new combinations. For purposes of | ||||||
3 | this subsection
(e) the term "mining" shall have the same | ||||||
4 | meaning as the term "mining" in
Section 613(c) of the | ||||||
5 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
6 | the term "retailing" means the sale of tangible personal | ||||||
7 | property or
services rendered in conjunction with the sale | ||||||
8 | of tangible consumer goods
or commodities.
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9 | (4) The basis of qualified property shall be the basis
| ||||||
10 | used to compute the depreciation deduction for federal | ||||||
11 | income tax purposes.
| ||||||
12 | (5) If the basis of the property for federal income tax | ||||||
13 | depreciation
purposes is increased after it has been placed | ||||||
14 | in service in Illinois by
the taxpayer, the amount of such | ||||||
15 | increase shall be deemed property placed
in service on the | ||||||
16 | date of such increase in basis.
| ||||||
17 | (6) The term "placed in service" shall have the same
| ||||||
18 | meaning as under Section 46 of the Internal Revenue Code.
| ||||||
19 | (7) If during any taxable year, any property ceases to
| ||||||
20 | be qualified property in the hands of the taxpayer within | ||||||
21 | 48 months after
being placed in service, or the situs of | ||||||
22 | any qualified property is
moved outside Illinois within 48 | ||||||
23 | months after being placed in service, the
Personal Property | ||||||
24 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
25 | increased. Such increase shall be determined by (i) | ||||||
26 | recomputing the
investment credit which would have been |
| |||||||
| |||||||
1 | allowed for the year in which
credit for such property was | ||||||
2 | originally allowed by eliminating such
property from such | ||||||
3 | computation and, (ii) subtracting such recomputed credit
| ||||||
4 | from the amount of credit previously allowed. For the | ||||||
5 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
6 | qualified property resulting
from a redetermination of the | ||||||
7 | purchase price shall be deemed a disposition
of qualified | ||||||
8 | property to the extent of such reduction.
| ||||||
9 | (8) Unless the investment credit is extended by law, | ||||||
10 | the
basis of qualified property shall not include costs | ||||||
11 | incurred after
December 31, 2008, except for costs incurred | ||||||
12 | pursuant to a binding
contract entered into on or before | ||||||
13 | December 31, 2008.
| ||||||
14 | (9) Each taxable year ending before December 31, 2000, | ||||||
15 | a partnership may
elect to pass through to its
partners the | ||||||
16 | credits to which the partnership is entitled under this | ||||||
17 | subsection
(e) for the taxable year. A partner may use the | ||||||
18 | credit allocated to him or her
under this paragraph only | ||||||
19 | against the tax imposed in subsections (c) and (d) of
this | ||||||
20 | Section. If the partnership makes that election, those | ||||||
21 | credits shall be
allocated among the partners in the | ||||||
22 | partnership in accordance with the rules
set forth in | ||||||
23 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
24 | promulgated under that Section, and the allocated amount of | ||||||
25 | the credits shall
be allowed to the partners for that | ||||||
26 | taxable year. The partnership shall make
this election on |
| |||||||
| |||||||
1 | its Personal Property Tax Replacement Income Tax return for
| ||||||
2 | that taxable year. The election to pass through the credits | ||||||
3 | shall be
irrevocable.
| ||||||
4 | For taxable years ending on or after December 31, 2000, | ||||||
5 | a
partner that qualifies its
partnership for a subtraction | ||||||
6 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
7 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
8 | S
corporation for a subtraction under subparagraph (S) of | ||||||
9 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
10 | allowed a credit under this subsection
(e) equal to its | ||||||
11 | share of the credit earned under this subsection (e) during
| ||||||
12 | the taxable year by the partnership or Subchapter S | ||||||
13 | corporation, determined in
accordance with the | ||||||
14 | determination of income and distributive share of
income | ||||||
15 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
16 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
17 | of Section 250.
| ||||||
18 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
19 | Redevelopment Zone.
| ||||||
20 | (1) A taxpayer shall be allowed a credit against the | ||||||
21 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
22 | investment in qualified
property which is placed in service | ||||||
23 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
24 | Enterprise Zone Act or, for property placed in service on | ||||||
25 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
26 | established pursuant to the River Edge Redevelopment Zone |
| |||||||
| |||||||
1 | Act. For partners, shareholders
of Subchapter S | ||||||
2 | corporations, and owners of limited liability companies,
| ||||||
3 | if the liability company is treated as a partnership for | ||||||
4 | purposes of
federal and State income taxation, there shall | ||||||
5 | be allowed a credit under
this subsection (f) to be | ||||||
6 | determined in accordance with the determination
of income | ||||||
7 | and distributive share of income under Sections 702 and 704 | ||||||
8 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
9 | shall be .5% of the
basis for such property. The credit | ||||||
10 | shall be available only in the taxable
year in which the | ||||||
11 | property is placed in service in the Enterprise Zone or | ||||||
12 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
13 | the extent that it would reduce a taxpayer's
liability for | ||||||
14 | the tax imposed by subsections (a) and (b) of this Section | ||||||
15 | to
below zero. For tax years ending on or after December | ||||||
16 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
17 | which the property is placed in
service, or, if the amount | ||||||
18 | of the credit exceeds the tax liability for that
year, | ||||||
19 | whether it exceeds the original liability or the liability | ||||||
20 | as later
amended, such excess may be carried forward and | ||||||
21 | applied to the tax
liability of the 5 taxable years | ||||||
22 | following the excess credit year.
The credit shall be | ||||||
23 | applied to the earliest year for which there is a
| ||||||
24 | liability. If there is credit from more than one tax year | ||||||
25 | that is available
to offset a liability, the credit | ||||||
26 | accruing first in time shall be applied
first.
|
| |||||||
| |||||||
1 | (2) The term qualified property means property which:
| ||||||
2 | (A) is tangible, whether new or used, including | ||||||
3 | buildings and
structural components of buildings;
| ||||||
4 | (B) is depreciable pursuant to Section 167 of the | ||||||
5 | Internal Revenue
Code, except that "3-year property" | ||||||
6 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
7 | eligible for the credit provided by this subsection | ||||||
8 | (f);
| ||||||
9 | (C) is acquired by purchase as defined in Section | ||||||
10 | 179(d) of
the Internal Revenue Code;
| ||||||
11 | (D) is used in the Enterprise Zone or River Edge | ||||||
12 | Redevelopment Zone by the taxpayer; and
| ||||||
13 | (E) has not been previously used in Illinois in | ||||||
14 | such a manner and by
such a person as would qualify for | ||||||
15 | the credit provided by this subsection
(f) or | ||||||
16 | subsection (e).
| ||||||
17 | (3) The basis of qualified property shall be the basis | ||||||
18 | used to compute
the depreciation deduction for federal | ||||||
19 | income tax purposes.
| ||||||
20 | (4) If the basis of the property for federal income tax | ||||||
21 | depreciation
purposes is increased after it has been placed | ||||||
22 | in service in the Enterprise
Zone or River Edge | ||||||
23 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
24 | increase shall be deemed property
placed in service on the | ||||||
25 | date of such increase in basis.
| ||||||
26 | (5) The term "placed in service" shall have the same |
| |||||||
| |||||||
1 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
2 | (6) If during any taxable year, any property ceases to | ||||||
3 | be qualified
property in the hands of the taxpayer within | ||||||
4 | 48 months after being placed
in service, or the situs of | ||||||
5 | any qualified property is moved outside the
Enterprise Zone | ||||||
6 | or River Edge Redevelopment Zone within 48 months after | ||||||
7 | being placed in service, the tax
imposed under subsections | ||||||
8 | (a) and (b) of this Section for such taxable year
shall be | ||||||
9 | increased. Such increase shall be determined by (i) | ||||||
10 | recomputing
the investment credit which would have been | ||||||
11 | allowed for the year in which
credit for such property was | ||||||
12 | originally allowed by eliminating such
property from such | ||||||
13 | computation, and (ii) subtracting such recomputed credit
| ||||||
14 | from the amount of credit previously allowed. For the | ||||||
15 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
16 | qualified property resulting
from a redetermination of the | ||||||
17 | purchase price shall be deemed a disposition
of qualified | ||||||
18 | property to the extent of such reduction.
| ||||||
19 | (7) There shall be allowed an additional credit equal | ||||||
20 | to 0.5% of the basis of qualified property placed in | ||||||
21 | service during the taxable year in a River Edge | ||||||
22 | Redevelopment Zone, provided such property is placed in | ||||||
23 | service on or after July 1, 2006, and the taxpayer's base | ||||||
24 | employment within Illinois has increased by 1% or more over | ||||||
25 | the preceding year as determined by the taxpayer's | ||||||
26 | employment records filed with the Illinois Department of |
| |||||||
| |||||||
1 | Employment Security. Taxpayers who are new to Illinois | ||||||
2 | shall be deemed to have met the 1% growth in base | ||||||
3 | employment for the first year in which they file employment | ||||||
4 | records with the Illinois Department of Employment | ||||||
5 | Security. If, in any year, the increase in base employment | ||||||
6 | within Illinois over the preceding year is less than 1%, | ||||||
7 | the additional credit shall be limited to that percentage | ||||||
8 | times a fraction, the numerator of which is 0.5% and the | ||||||
9 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
10 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
11 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
| ||||||
12 | (1) A taxpayer conducting a trade or business in an | ||||||
13 | enterprise zone
or a High Impact Business designated by the | ||||||
14 | Department of Commerce and
Economic Opportunity or for | ||||||
15 | taxable years ending on or after December 31, 2006, in a | ||||||
16 | River Edge Redevelopment Zone conducting a trade or | ||||||
17 | business in a federally designated
Foreign Trade Zone or | ||||||
18 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
19 | by subsections (a) and (b) of this Section in the amount of | ||||||
20 | $500
per eligible employee hired to work in the zone during | ||||||
21 | the taxable year.
| ||||||
22 | (2) To qualify for the credit:
| ||||||
23 | (A) the taxpayer must hire 5 or more eligible | ||||||
24 | employees to work in an
enterprise zone, River Edge | ||||||
25 | Redevelopment Zone, or federally designated Foreign | ||||||
26 | Trade Zone or Sub-Zone
during the taxable year;
|
| |||||||
| |||||||
1 | (B) the taxpayer's total employment within the | ||||||
2 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
3 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
4 | must
increase by 5 or more full-time employees beyond | ||||||
5 | the total employed in that
zone at the end of the | ||||||
6 | previous tax year for which a jobs tax
credit under | ||||||
7 | this Section was taken, or beyond the total employed by | ||||||
8 | the
taxpayer as of December 31, 1985, whichever is | ||||||
9 | later; and
| ||||||
10 | (C) the eligible employees must be employed 180 | ||||||
11 | consecutive days in
order to be deemed hired for | ||||||
12 | purposes of this subsection.
| ||||||
13 | (3) An "eligible employee" means an employee who is:
| ||||||
14 | (A) Certified by the Department of Commerce and | ||||||
15 | Economic Opportunity
as "eligible for services" | ||||||
16 | pursuant to regulations promulgated in
accordance with | ||||||
17 | Title II of the Job Training Partnership Act, Training
| ||||||
18 | Services for the Disadvantaged or Title III of the Job | ||||||
19 | Training Partnership
Act, Employment and Training | ||||||
20 | Assistance for Dislocated Workers Program.
| ||||||
21 | (B) Hired after the enterprise zone, River Edge | ||||||
22 | Redevelopment Zone, or federally designated Foreign
| ||||||
23 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
24 | business was located in that zone, whichever is later.
| ||||||
25 | (C) Employed in the enterprise zone, River Edge | ||||||
26 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. |
| |||||||
| |||||||
1 | An employee is employed in an
enterprise zone or | ||||||
2 | federally designated Foreign Trade Zone or Sub-Zone
if | ||||||
3 | his services are rendered there or it is the base of
| ||||||
4 | operations for the services performed.
| ||||||
5 | (D) A full-time employee working 30 or more hours | ||||||
6 | per week.
| ||||||
7 | (4) For tax years ending on or after December 31, 1985 | ||||||
8 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
9 | for the tax year in which
the eligible employees are hired. | ||||||
10 | For tax years ending on or after
December 31, 1988, the | ||||||
11 | credit shall be allowed for the tax year immediately
| ||||||
12 | following the tax year in which the eligible employees are | ||||||
13 | hired. If the
amount of the credit exceeds the tax | ||||||
14 | liability for that year, whether it
exceeds the original | ||||||
15 | liability or the liability as later amended, such
excess | ||||||
16 | may be carried forward and applied to the tax liability of | ||||||
17 | the 5
taxable years following the excess credit year. The | ||||||
18 | credit shall be
applied to the earliest year for which | ||||||
19 | there is a liability. If there is
credit from more than one | ||||||
20 | tax year that is available to offset a liability,
earlier | ||||||
21 | credit shall be applied first.
| ||||||
22 | (5) The Department of Revenue shall promulgate such | ||||||
23 | rules and regulations
as may be deemed necessary to carry | ||||||
24 | out the purposes of this subsection (g).
| ||||||
25 | (6) The credit shall be available for eligible | ||||||
26 | employees hired on or
after January 1, 1986.
|
| |||||||
| |||||||
1 | (h) Investment credit; High Impact Business.
| ||||||
2 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
3 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
4 | allowed a credit
against the tax imposed by subsections (a) | ||||||
5 | and (b) of this Section for
investment in qualified
| ||||||
6 | property which is placed in service by a Department of | ||||||
7 | Commerce and Economic Opportunity
designated High Impact | ||||||
8 | Business. The credit shall be .5% of the basis
for such | ||||||
9 | property. The credit shall not be available (i) until the | ||||||
10 | minimum
investments in qualified property set forth in | ||||||
11 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
12 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
13 | time authorized in subsection (b-5) of the Illinois
| ||||||
14 | Enterprise Zone Act for entities designated as High Impact | ||||||
15 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
16 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
17 | Act, and shall not be allowed to the extent that it would
| ||||||
18 | reduce a taxpayer's liability for the tax imposed by | ||||||
19 | subsections (a) and (b) of
this Section to below zero. The | ||||||
20 | credit applicable to such investments shall be
taken in the | ||||||
21 | taxable year in which such investments have been completed. | ||||||
22 | The
credit for additional investments beyond the minimum | ||||||
23 | investment by a designated
high impact business authorized | ||||||
24 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
25 | Enterprise Zone Act shall be available only in the taxable | ||||||
26 | year in
which the property is placed in service and shall |
| |||||||
| |||||||
1 | not be allowed to the extent
that it would reduce a | ||||||
2 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
3 | and (b) of this Section to below zero.
For tax years ending | ||||||
4 | on or after December 31, 1987, the credit shall be
allowed | ||||||
5 | for the tax year in which the property is placed in | ||||||
6 | service, or, if
the amount of the credit exceeds the tax | ||||||
7 | liability for that year, whether
it exceeds the original | ||||||
8 | liability or the liability as later amended, such
excess | ||||||
9 | may be carried forward and applied to the tax liability of | ||||||
10 | the 5
taxable years following the excess credit year. The | ||||||
11 | credit shall be
applied to the earliest year for which | ||||||
12 | there is a liability. If there is
credit from more than one | ||||||
13 | tax year that is available to offset a liability,
the | ||||||
14 | credit accruing first in time shall be applied first.
| ||||||
15 | Changes made in this subdivision (h)(1) by Public Act | ||||||
16 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
17 | reflect existing law.
| ||||||
18 | (2) The term qualified property means property which:
| ||||||
19 | (A) is tangible, whether new or used, including | ||||||
20 | buildings and
structural components of buildings;
| ||||||
21 | (B) is depreciable pursuant to Section 167 of the | ||||||
22 | Internal Revenue
Code, except that "3-year property" | ||||||
23 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
24 | eligible for the credit provided by this subsection | ||||||
25 | (h);
| ||||||
26 | (C) is acquired by purchase as defined in Section |
| |||||||
| |||||||
1 | 179(d) of the
Internal Revenue Code; and
| ||||||
2 | (D) is not eligible for the Enterprise Zone | ||||||
3 | Investment Credit provided
by subsection (f) of this | ||||||
4 | Section.
| ||||||
5 | (3) The basis of qualified property shall be the basis | ||||||
6 | used to compute
the depreciation deduction for federal | ||||||
7 | income tax purposes.
| ||||||
8 | (4) If the basis of the property for federal income tax | ||||||
9 | depreciation
purposes is increased after it has been placed | ||||||
10 | in service in a federally
designated Foreign Trade Zone or | ||||||
11 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
12 | such increase shall be deemed property placed in service on
| ||||||
13 | the date of such increase in basis.
| ||||||
14 | (5) The term "placed in service" shall have the same | ||||||
15 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
16 | (6) If during any taxable year ending on or before | ||||||
17 | December 31, 1996,
any property ceases to be qualified
| ||||||
18 | property in the hands of the taxpayer within 48 months | ||||||
19 | after being placed
in service, or the situs of any | ||||||
20 | qualified property is moved outside
Illinois within 48 | ||||||
21 | months after being placed in service, the tax imposed
under | ||||||
22 | subsections (a) and (b) of this Section for such taxable | ||||||
23 | year shall
be increased. Such increase shall be determined | ||||||
24 | by (i) recomputing the
investment credit which would have | ||||||
25 | been allowed for the year in which
credit for such property | ||||||
26 | was originally allowed by eliminating such
property from |
| |||||||
| |||||||
1 | such computation, and (ii) subtracting such recomputed | ||||||
2 | credit
from the amount of credit previously allowed. For | ||||||
3 | the purposes of this
paragraph (6), a reduction of the | ||||||
4 | basis of qualified property resulting
from a | ||||||
5 | redetermination of the purchase price shall be deemed a | ||||||
6 | disposition
of qualified property to the extent of such | ||||||
7 | reduction.
| ||||||
8 | (7) Beginning with tax years ending after December 31, | ||||||
9 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
10 | subsection (h) and thereby is
granted a tax abatement and | ||||||
11 | the taxpayer relocates its entire facility in
violation of | ||||||
12 | the explicit terms and length of the contract under Section
| ||||||
13 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
14 | subsections
(a) and (b) of this Section shall be increased | ||||||
15 | for the taxable year
in which the taxpayer relocated its | ||||||
16 | facility by an amount equal to the
amount of credit | ||||||
17 | received by the taxpayer under this subsection (h).
| ||||||
18 | (i) Credit for Personal Property Tax Replacement Income | ||||||
19 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
20 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
21 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
22 | (d) of this Section. This credit shall be computed by | ||||||
23 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
24 | Section by a fraction, the numerator
of which is base income | ||||||
25 | allocable to Illinois and the denominator of which is
Illinois | ||||||
26 | base income, and further multiplying the product by the tax |
| |||||||
| |||||||
1 | rate
imposed by subsections (a) and (b) of this Section.
| ||||||
2 | Any credit earned on or after December 31, 1986 under
this | ||||||
3 | subsection which is unused in the year
the credit is computed | ||||||
4 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
5 | and (b) for that year (whether it exceeds the original
| ||||||
6 | liability or the liability as later amended) may be carried | ||||||
7 | forward and
applied to the tax liability imposed by subsections | ||||||
8 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
9 | year, provided that no credit may
be carried forward to any | ||||||
10 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
11 | applied first to the earliest year for which there is a | ||||||
12 | liability. If
there is a credit under this subsection from more | ||||||
13 | than one tax year that is
available to offset a liability the | ||||||
14 | earliest credit arising under this
subsection shall be applied | ||||||
15 | first.
| ||||||
16 | If, during any taxable year ending on or after December 31, | ||||||
17 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
18 | Section for which a taxpayer
has claimed a credit under this | ||||||
19 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
20 | shall also be reduced. Such reduction shall be
determined by | ||||||
21 | recomputing the credit to take into account the reduced tax
| ||||||
22 | imposed by subsections (c) and (d). If any portion of the
| ||||||
23 | reduced amount of credit has been carried to a different | ||||||
24 | taxable year, an
amended return shall be filed for such taxable | ||||||
25 | year to reduce the amount of
credit claimed.
| ||||||
26 | (j) Training expense credit. Beginning with tax years |
| |||||||
| |||||||
1 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
2 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
3 | imposed by subsections (a) and (b) under this Section
for all | ||||||
4 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
5 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
6 | of Illinois by a taxpayer, for educational or vocational | ||||||
7 | training in
semi-technical or technical fields or semi-skilled | ||||||
8 | or skilled fields, which
were deducted from gross income in the | ||||||
9 | computation of taxable income. The
credit against the tax | ||||||
10 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
11 | training expenses. For partners, shareholders of subchapter S
| ||||||
12 | corporations, and owners of limited liability companies, if the | ||||||
13 | liability
company is treated as a partnership for purposes of | ||||||
14 | federal and State income
taxation, there shall be allowed a | ||||||
15 | credit under this subsection (j) to be
determined in accordance | ||||||
16 | with the determination of income and distributive
share of | ||||||
17 | income under Sections 702 and 704 and subchapter S of the | ||||||
18 | Internal
Revenue Code.
| ||||||
19 | Any credit allowed under this subsection which is unused in | ||||||
20 | the year
the credit is earned may be carried forward to each of | ||||||
21 | the 5 taxable
years following the year for which the credit is | ||||||
22 | first computed until it is
used. This credit shall be applied | ||||||
23 | first to the earliest year for which
there is a liability. If | ||||||
24 | there is a credit under this subsection from more
than one tax | ||||||
25 | year that is available to offset a liability the earliest
| ||||||
26 | credit arising under this subsection shall be applied first. No |
| |||||||
| |||||||
1 | carryforward
credit may be claimed in any tax year ending on or | ||||||
2 | after
December 31, 2003.
| ||||||
3 | (k) Research and development credit.
| ||||||
4 | For tax years ending after July 1, 1990 and prior to
| ||||||
5 | December 31, 2003, and beginning again for tax years ending on | ||||||
6 | or after December 31, 2004, a taxpayer shall be
allowed a | ||||||
7 | credit against the tax imposed by subsections (a) and (b) of | ||||||
8 | this
Section for increasing research activities in this State. | ||||||
9 | The credit
allowed against the tax imposed by subsections (a) | ||||||
10 | and (b) shall be equal
to 6 1/2% of the qualifying expenditures | ||||||
11 | for increasing research activities
in this State. For partners, | ||||||
12 | shareholders of subchapter S corporations, and
owners of | ||||||
13 | limited liability companies, if the liability company is | ||||||
14 | treated as a
partnership for purposes of federal and State | ||||||
15 | income taxation, there shall be
allowed a credit under this | ||||||
16 | subsection to be determined in accordance with the
| ||||||
17 | determination of income and distributive share of income under | ||||||
18 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
19 | Code.
| ||||||
20 | For purposes of this subsection, "qualifying expenditures" | ||||||
21 | means the
qualifying expenditures as defined for the federal | ||||||
22 | credit for increasing
research activities which would be | ||||||
23 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
24 | which are conducted in this State, "qualifying
expenditures for | ||||||
25 | increasing research activities in this State" means the
excess | ||||||
26 | of qualifying expenditures for the taxable year in which |
| |||||||
| |||||||
1 | incurred
over qualifying expenditures for the base period, | ||||||
2 | "qualifying expenditures
for the base period" means the average | ||||||
3 | of the qualifying expenditures for
each year in the base | ||||||
4 | period, and "base period" means the 3 taxable years
immediately | ||||||
5 | preceding the taxable year for which the determination is
being | ||||||
6 | made.
| ||||||
7 | Any credit in excess of the tax liability for the taxable | ||||||
8 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
9 | unused credit shown on its final completed return carried over | ||||||
10 | as a credit
against the tax liability for the following 5 | ||||||
11 | taxable years or until it has
been fully used, whichever occurs | ||||||
12 | first; provided that no credit earned in a tax year ending | ||||||
13 | prior to December 31, 2003 may be carried forward to any year | ||||||
14 | ending on or after December 31, 2003.
| ||||||
15 | If an unused credit is carried forward to a given year from | ||||||
16 | 2 or more
earlier years, that credit arising in the earliest | ||||||
17 | year will be applied
first against the tax liability for the | ||||||
18 | given year. If a tax liability for
the given year still | ||||||
19 | remains, the credit from the next earliest year will
then be | ||||||
20 | applied, and so on, until all credits have been used or no tax
| ||||||
21 | liability for the given year remains. Any remaining unused | ||||||
22 | credit or
credits then will be carried forward to the next | ||||||
23 | following year in which a
tax liability is incurred, except | ||||||
24 | that no credit can be carried forward to
a year which is more | ||||||
25 | than 5 years after the year in which the expense for
which the | ||||||
26 | credit is given was incurred.
|
| |||||||
| |||||||
1 | No inference shall be drawn from this amendatory Act of the | ||||||
2 | 91st General
Assembly in construing this Section for taxable | ||||||
3 | years beginning before January
1, 1999.
| ||||||
4 | (l) Environmental Remediation Tax Credit.
| ||||||
5 | (i) For tax years ending after December 31, 1997 and on | ||||||
6 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
7 | credit against the tax
imposed by subsections (a) and (b) | ||||||
8 | of this Section for certain amounts paid
for unreimbursed | ||||||
9 | eligible remediation costs, as specified in this | ||||||
10 | subsection.
For purposes of this Section, "unreimbursed | ||||||
11 | eligible remediation costs" means
costs approved by the | ||||||
12 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
13 | Section 58.14 of the Environmental Protection Act that were | ||||||
14 | paid in performing
environmental remediation at a site for | ||||||
15 | which a No Further Remediation Letter
was issued by the | ||||||
16 | Agency and recorded under Section 58.10 of the | ||||||
17 | Environmental
Protection Act. The credit must be claimed | ||||||
18 | for the taxable year in which
Agency approval of the | ||||||
19 | eligible remediation costs is granted. The credit is
not | ||||||
20 | available to any taxpayer if the taxpayer or any related | ||||||
21 | party caused or
contributed to, in any material respect, a | ||||||
22 | release of regulated substances on,
in, or under the site | ||||||
23 | that was identified and addressed by the remedial
action | ||||||
24 | pursuant to the Site Remediation Program of the | ||||||
25 | Environmental Protection
Act. After the Pollution Control | ||||||
26 | Board rules are adopted pursuant to the
Illinois |
| |||||||
| |||||||
1 | Administrative Procedure Act for the administration and | ||||||
2 | enforcement of
Section 58.9 of the Environmental | ||||||
3 | Protection Act, determinations as to credit
availability | ||||||
4 | for purposes of this Section shall be made consistent with | ||||||
5 | those
rules. For purposes of this Section, "taxpayer" | ||||||
6 | includes a person whose tax
attributes the taxpayer has | ||||||
7 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
8 | and "related party" includes the persons disallowed a | ||||||
9 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
10 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
11 | a related taxpayer, as well as any of its
partners. The | ||||||
12 | credit allowed against the tax imposed by subsections (a) | ||||||
13 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
14 | remediation costs in
excess of $100,000 per site, except | ||||||
15 | that the $100,000 threshold shall not apply
to any site | ||||||
16 | contained in an enterprise zone as determined by the | ||||||
17 | Department of
Commerce and Community Affairs (now | ||||||
18 | Department of Commerce and Economic Opportunity). The | ||||||
19 | total credit allowed shall not exceed
$40,000 per year with | ||||||
20 | a maximum total of $150,000 per site. For partners and
| ||||||
21 | shareholders of subchapter S corporations, there shall be | ||||||
22 | allowed a credit
under this subsection to be determined in | ||||||
23 | accordance with the determination of
income and | ||||||
24 | distributive share of income under Sections 702 and 704 and
| ||||||
25 | subchapter S of the Internal Revenue Code.
| ||||||
26 | (ii) A credit allowed under this subsection that is |
| |||||||
| |||||||
1 | unused in the year
the credit is earned may be carried | ||||||
2 | forward to each of the 5 taxable years
following the year | ||||||
3 | for which the credit is first earned until it is used.
The | ||||||
4 | term "unused credit" does not include any amounts of | ||||||
5 | unreimbursed eligible
remediation costs in excess of the | ||||||
6 | maximum credit per site authorized under
paragraph (i). | ||||||
7 | This credit shall be applied first to the earliest year
for | ||||||
8 | which there is a liability. If there is a credit under this | ||||||
9 | subsection
from more than one tax year that is available to | ||||||
10 | offset a liability, the
earliest credit arising under this | ||||||
11 | subsection shall be applied first. A
credit allowed under | ||||||
12 | this subsection may be sold to a buyer as part of a sale
of | ||||||
13 | all or part of the remediation site for which the credit | ||||||
14 | was granted. The
purchaser of a remediation site and the | ||||||
15 | tax credit shall succeed to the unused
credit and remaining | ||||||
16 | carry-forward period of the seller. To perfect the
| ||||||
17 | transfer, the assignor shall record the transfer in the | ||||||
18 | chain of title for the
site and provide written notice to | ||||||
19 | the Director of the Illinois Department of
Revenue of the | ||||||
20 | assignor's intent to sell the remediation site and the | ||||||
21 | amount of
the tax credit to be transferred as a portion of | ||||||
22 | the sale. In no event may a
credit be transferred to any | ||||||
23 | taxpayer if the taxpayer or a related party would
not be | ||||||
24 | eligible under the provisions of subsection (i).
| ||||||
25 | (iii) For purposes of this Section, the term "site" | ||||||
26 | shall have the same
meaning as under Section 58.2 of the |
| |||||||
| |||||||
1 | Environmental Protection Act.
| ||||||
2 | (m) Education expense credit. Beginning with tax years | ||||||
3 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
4 | of one or more qualifying pupils shall be allowed a credit
| ||||||
5 | against the tax imposed by subsections (a) and (b) of this | ||||||
6 | Section for
qualified education expenses incurred on behalf of | ||||||
7 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
8 | qualified education expenses, but in no
event may the total | ||||||
9 | credit under this subsection claimed by a
family that is the
| ||||||
10 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
11 | credit under
this subsection reduce the taxpayer's liability | ||||||
12 | under this Act to less than
zero. This subsection is exempt | ||||||
13 | from the provisions of Section 250 of this
Act.
| ||||||
14 | For purposes of this subsection:
| ||||||
15 | "Qualifying pupils" means individuals who (i) are | ||||||
16 | residents of the State of
Illinois, (ii) are under the age of | ||||||
17 | 21 at the close of the school year for
which a credit is | ||||||
18 | sought, and (iii) during the school year for which a credit
is | ||||||
19 | sought were full-time pupils enrolled in a kindergarten through | ||||||
20 | twelfth
grade education program at any school, as defined in | ||||||
21 | this subsection.
| ||||||
22 | "Qualified education expense" means the amount incurred
on | ||||||
23 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
24 | book fees, and
lab fees at the school in which the pupil is | ||||||
25 | enrolled during the regular school
year.
| ||||||
26 | "School" means any public or nonpublic elementary or |
| |||||||
| |||||||
1 | secondary school in
Illinois that is in compliance with Title | ||||||
2 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
3 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
4 | except that nothing shall be construed to require a child to
| ||||||
5 | attend any particular public or nonpublic school to qualify for | ||||||
6 | the credit
under this Section.
| ||||||
7 | "Custodian" means, with respect to qualifying pupils, an | ||||||
8 | Illinois resident
who is a parent, the parents, a legal | ||||||
9 | guardian, or the legal guardians of the
qualifying pupils.
| ||||||
10 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
11 | credit.
| ||||||
12 | (i) For tax years ending on or after December 31, 2006, | ||||||
13 | a taxpayer shall be allowed a credit against the tax | ||||||
14 | imposed by subsections (a) and (b) of this Section for | ||||||
15 | certain amounts paid for unreimbursed eligible remediation | ||||||
16 | costs, as specified in this subsection. For purposes of | ||||||
17 | this Section, "unreimbursed eligible remediation costs" | ||||||
18 | means costs approved by the Illinois Environmental | ||||||
19 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
20 | Environmental Protection Act that were paid in performing | ||||||
21 | environmental remediation at a site within a River Edge | ||||||
22 | Redevelopment Zone for which a No Further Remediation | ||||||
23 | Letter was issued by the Agency and recorded under Section | ||||||
24 | 58.10 of the Environmental Protection Act. The credit must | ||||||
25 | be claimed for the taxable year in which Agency approval of | ||||||
26 | the eligible remediation costs is granted. The credit is |
| |||||||
| |||||||
1 | not available to any taxpayer if the taxpayer or any | ||||||
2 | related party caused or contributed to, in any material | ||||||
3 | respect, a release of regulated substances on, in, or under | ||||||
4 | the site that was identified and addressed by the remedial | ||||||
5 | action pursuant to the Site Remediation Program of the | ||||||
6 | Environmental Protection Act. Determinations as to credit | ||||||
7 | availability for purposes of this Section shall be made | ||||||
8 | consistent with rules adopted by the Pollution Control | ||||||
9 | Board pursuant to the Illinois Administrative Procedure | ||||||
10 | Act for the administration and enforcement of Section 58.9 | ||||||
11 | of the Environmental Protection Act. For purposes of this | ||||||
12 | Section, "taxpayer" includes a person whose tax attributes | ||||||
13 | the taxpayer has succeeded to under Section 381 of the | ||||||
14 | Internal Revenue Code and "related party" includes the | ||||||
15 | persons disallowed a deduction for losses by paragraphs | ||||||
16 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
17 | Code by virtue of being a related taxpayer, as well as any | ||||||
18 | of its partners. The credit allowed against the tax imposed | ||||||
19 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
20 | unreimbursed eligible remediation costs in excess of | ||||||
21 | $100,000 per site. | ||||||
22 | (ii) A credit allowed under this subsection that is | ||||||
23 | unused in the year the credit is earned may be carried | ||||||
24 | forward to each of the 5 taxable years following the year | ||||||
25 | for which the credit is first earned until it is used. This | ||||||
26 | credit shall be applied first to the earliest year for |
| |||||||
| |||||||
1 | which there is a liability. If there is a credit under this | ||||||
2 | subsection from more than one tax year that is available to | ||||||
3 | offset a liability, the earliest credit arising under this | ||||||
4 | subsection shall be applied first. A credit allowed under | ||||||
5 | this subsection may be sold to a buyer as part of a sale of | ||||||
6 | all or part of the remediation site for which the credit | ||||||
7 | was granted. The purchaser of a remediation site and the | ||||||
8 | tax credit shall succeed to the unused credit and remaining | ||||||
9 | carry-forward period of the seller. To perfect the | ||||||
10 | transfer, the assignor shall record the transfer in the | ||||||
11 | chain of title for the site and provide written notice to | ||||||
12 | the Director of the Illinois Department of Revenue of the | ||||||
13 | assignor's intent to sell the remediation site and the | ||||||
14 | amount of the tax credit to be transferred as a portion of | ||||||
15 | the sale. In no event may a credit be transferred to any | ||||||
16 | taxpayer if the taxpayer or a related party would not be | ||||||
17 | eligible under the provisions of subsection (i). | ||||||
18 | (iii) For purposes of this Section, the term "site" | ||||||
19 | shall have the same meaning as under Section 58.2 of the | ||||||
20 | Environmental Protection Act. | ||||||
21 | (iv) This subsection is exempt from the provisions of | ||||||
22 | Section 250.
| ||||||
23 | (Source: P.A. 94-1021, eff. 7-12-06; 95-454, eff. 8-27-07.)
| ||||||
24 | (35 ILCS 5/202.5 new) | ||||||
25 | Sec. 202.5. Net income attributable to the period prior to
|
| |||||||
| |||||||
1 | January 1, 2009 and net income attributable to the period after
| ||||||
2 | December 31, 2008. | ||||||
3 | (a) In general. With respect to the taxable year of a
| ||||||
4 | taxpayer beginning prior to January 1, 2009 and ending after
| ||||||
5 | December 31, 2008, net income for the period after December 31,
| ||||||
6 | 2008 is that amount that bears the same ratio to the
taxpayer's | ||||||
7 | net income for the entire taxable year as the number
of days in | ||||||
8 | that year after December 31, 2008 bears to the total
number of | ||||||
9 | days in that year, and the net income for the period
prior to | ||||||
10 | January 1, 2009 is that amount that bears the
same ratio to the | ||||||
11 | taxpayer's net income for the entire taxable
year as the number | ||||||
12 | of days in that year prior to January 1,
2009 bears to the | ||||||
13 | total number of days in that year. | ||||||
14 | (b) Election to attribute income and deduction items
| ||||||
15 | specifically to the respective portions of a taxable year prior
| ||||||
16 | to January 1, 2009 and after December 31, 2008. In the case of
| ||||||
17 | a taxpayer with a taxable year beginning prior to January 1,
| ||||||
18 | 2009 and ending after December 31, 2008, the taxpayer may
| ||||||
19 | elect, instead of the procedure established in subsection (a)
| ||||||
20 | of this Section, to determine net income on a specific
| ||||||
21 | accounting basis for the 2 portions of his or her taxable year: | ||||||
22 | (i) from the beginning of the taxable year through
| ||||||
23 | December 31, 2008; and | ||||||
24 | (ii) from January 1, 2009 through the end of the
| ||||||
25 | taxable year. | ||||||
26 | If the taxpayer elects specific accounting under this
|
| |||||||
| |||||||
1 | subsection, there shall be taken into account in computing base
| ||||||
2 | income for each of the 2 portions of the taxable year only
| ||||||
3 | those items earned, received, paid, incurred or accrued in each | ||||||
4 | such period. The standard exemption provided by Section 204
| ||||||
5 | must be divided between the respective periods in amounts that
| ||||||
6 | bear the same ratio to the total exemption allowable under
| ||||||
7 | Section 204 (determined without regard to this Section) as the
| ||||||
8 | total number of days in each such period bears to the total
| ||||||
9 | number of days in the taxable year. The election provided by
| ||||||
10 | this subsection must be made in form and manner
that the | ||||||
11 | Department requires by rule, but
must be made no later than the | ||||||
12 | due date (including any
extensions thereof) for the filing of | ||||||
13 | the return for the
taxable year, and is irrevocable.
| ||||||
14 | (35 ILCS 5/202.5a new)
| ||||||
15 | Sec. 202.5a. Net income attributable to the period prior to
| ||||||
16 | January 1, 2010 and net income attributable to the period after
| ||||||
17 | December 31, 2009. | ||||||
18 | (a) In general. With respect to the taxable year of a
| ||||||
19 | taxpayer beginning prior to January 1, 2010 and ending after
| ||||||
20 | December 31, 2009, net income for the period after December 31,
| ||||||
21 | 2009 is that amount that bears the same ratio to the
taxpayer's | ||||||
22 | net income for the entire taxable year as the number
of days in | ||||||
23 | that year after December 31, 2009 bears to the total
number of | ||||||
24 | days in that year, and the net income for the period
prior to | ||||||
25 | January 1, 2010 is that amount that bears the
same ratio to the |
| |||||||
| |||||||
1 | taxpayer's net income for the entire taxable
year as the number | ||||||
2 | of days in that year prior to January 1,
2010 bears to the | ||||||
3 | total number of days in that year. | ||||||
4 | (b) Election to attribute income and deduction items
| ||||||
5 | specifically to the respective portions of a taxable year prior
| ||||||
6 | to January 1, 2010 and after December 31, 2009. In the case of
| ||||||
7 | a taxpayer with a taxable year beginning prior to January 1,
| ||||||
8 | 2010 and ending after December 31, 2009, the taxpayer may
| ||||||
9 | elect, instead of the procedure established in subsection (a)
| ||||||
10 | of this Section, to determine net income on a specific
| ||||||
11 | accounting basis for the 2 portions of his or her taxable year: | ||||||
12 | (i) from the beginning of the taxable year through
| ||||||
13 | December 31, 2009; and | ||||||
14 | (ii) from January 1, 2010 through the end of the
| ||||||
15 | taxable year. | ||||||
16 | If the taxpayer elects specific accounting under this
| ||||||
17 | subsection, there shall be taken into account in computing base
| ||||||
18 | income for each of the 2 portions of the taxable year only
| ||||||
19 | those items earned, received, paid, incurred or accrued in each | ||||||
20 | such period. The standard exemption provided by Section 204
| ||||||
21 | must be divided between the respective periods in amounts that
| ||||||
22 | bear the same ratio to the total exemption allowable under
| ||||||
23 | Section 204 (determined without regard to this Section) as the
| ||||||
24 | total number of days in each such period bears to the total
| ||||||
25 | number of days in the taxable year. The election provided by
| ||||||
26 | this subsection must be made in form and manner
that the |
| |||||||
| |||||||
1 | Department requires by rule, but
must be made no later than the | ||||||
2 | due date (including any
extensions thereof) for the filing of | ||||||
3 | the return for the
taxable year, and is irrevocable.
| ||||||
4 | (35 ILCS 5/202.5b new)
| ||||||
5 | Sec. 202.5b. Net income attributable to the period prior to
| ||||||
6 | January 1, 2011 and net income attributable to the period after
| ||||||
7 | December 31, 2010. | ||||||
8 | (a) In general. With respect to the taxable year of a
| ||||||
9 | taxpayer beginning prior to January 1, 2011 and ending after
| ||||||
10 | December 31, 2010, net income for the period after December 31,
| ||||||
11 | 2010 is that amount that bears the same ratio to the
taxpayer's | ||||||
12 | net income for the entire taxable year as the number
of days in | ||||||
13 | that year after December 31, 2010 bears to the total
number of | ||||||
14 | days in that year, and the net income for the period
prior to | ||||||
15 | January 1, 2011 is that amount that bears the
same ratio to the | ||||||
16 | taxpayer's net income for the entire taxable
year as the number | ||||||
17 | of days in that year prior to January 1,
2011 bears to the | ||||||
18 | total number of days in that year. | ||||||
19 | (b) Election to attribute income and deduction items
| ||||||
20 | specifically to the respective portions of a taxable year prior
| ||||||
21 | to January 1, 2011 and after December 31, 2010. In the case of
| ||||||
22 | a taxpayer with a taxable year beginning prior to January 1,
| ||||||
23 | 2011 and ending after December 31, 2010, the taxpayer may
| ||||||
24 | elect, instead of the procedure established in subsection (a)
| ||||||
25 | of this Section, to determine net income on a specific
|
| |||||||
| |||||||
1 | accounting basis for the 2 portions of his or her taxable year: | ||||||
2 | (i) from the beginning of the taxable year through
| ||||||
3 | December 31, 2010; and | ||||||
4 | (ii) from January 1, 2011 through the end of the
| ||||||
5 | taxable year. | ||||||
6 | If the taxpayer elects specific accounting under this
| ||||||
7 | subsection, there shall be taken into account in computing base
| ||||||
8 | income for each of the 2 portions of the taxable year only
| ||||||
9 | those items earned, received, paid, incurred or accrued in each | ||||||
10 | such period. The standard exemption provided by Section 204
| ||||||
11 | must be divided between the respective periods in amounts that
| ||||||
12 | bear the same ratio to the total exemption allowable under
| ||||||
13 | Section 204 (determined without regard to this Section) as the
| ||||||
14 | total number of days in each such period bears to the total
| ||||||
15 | number of days in the taxable year. The election provided by
| ||||||
16 | this subsection must be made in form and manner
that the | ||||||
17 | Department requires by rule, but
must be made no later than the | ||||||
18 | due date (including any
extensions thereof) for the filing of | ||||||
19 | the return for the
taxable year, and is irrevocable.
| ||||||
20 | (35 ILCS 5/901) (from Ch. 120, par. 9-901)
| ||||||
21 | Sec. 901. Collection Authority.
| ||||||
22 | (a) In general.
| ||||||
23 | The Department shall collect the taxes imposed by this Act. | ||||||
24 | The Department
shall collect certified past due child support | ||||||
25 | amounts under Section 2505-650
of the Department of Revenue Law |
| |||||||
| |||||||
1 | (20 ILCS 2505/2505-650). Except as
provided in subsections (c) | ||||||
2 | and (e) of this Section, money collected
pursuant to | ||||||
3 | subsections (a) and (b) of Section 201 of this Act shall be
| ||||||
4 | paid into the General Revenue Fund in the State treasury; money
| ||||||
5 | collected pursuant to subsections (c) and (d) of Section 201 of | ||||||
6 | this Act
shall be paid into the Personal Property Tax | ||||||
7 | Replacement Fund, a special
fund in the State Treasury; and | ||||||
8 | money collected under Section 2505-650 of the
Department of | ||||||
9 | Revenue Law (20 ILCS 2505/2505-650) shall be paid
into the
| ||||||
10 | Child Support Enforcement Trust Fund, a special fund outside | ||||||
11 | the State
Treasury, or
to the State
Disbursement Unit | ||||||
12 | established under Section 10-26 of the Illinois Public Aid
| ||||||
13 | Code, as directed by the Department of Healthcare and Family | ||||||
14 | Services.
| ||||||
15 | (b) Local Government
Governmental Distributive Fund.
| ||||||
16 | Beginning August 1, 1969, and continuing through June 30, | ||||||
17 | 1994, the Treasurer
shall transfer each month from the General | ||||||
18 | Revenue Fund to a special fund in
the State treasury, to be | ||||||
19 | known as the "Local Government Distributive Fund", an
amount | ||||||
20 | equal to 1/12 of the net revenue realized from the tax imposed | ||||||
21 | by
subsections (a) and (b) of Section 201 of this Act during | ||||||
22 | the preceding month.
Beginning July 1, 1994, and continuing | ||||||
23 | through June 30, 1995, the Treasurer
shall transfer each month | ||||||
24 | from the General Revenue Fund to the Local Government
| ||||||
25 | Distributive Fund an amount equal to 1/11 of the net revenue | ||||||
26 | realized from the
tax imposed by subsections (a) and (b) of |
| |||||||
| |||||||
1 | Section 201 of this Act during the
preceding month. Beginning | ||||||
2 | July 1, 1995, the Treasurer shall transfer each
month from the | ||||||
3 | General Revenue Fund to the Local Government Distributive Fund
| ||||||
4 | an amount equal to the net of (i) 1/10 of the net revenue | ||||||
5 | realized from the
tax imposed by
subsections (a) and (b) of | ||||||
6 | Section 201 of the Illinois Income Tax Act during
the preceding | ||||||
7 | month
(ii) minus, beginning July 1, 2003 and ending June 30, | ||||||
8 | 2004, $6,666,666, and
beginning July 1,
2004,
zero. Net revenue | ||||||
9 | realized for a month shall be defined as the
revenue from the | ||||||
10 | tax imposed by subsections (a) and (b) of Section 201 of this
| ||||||
11 | Act which is deposited in the General Revenue Fund, the | ||||||
12 | Educational Assistance
Fund and the Income Tax Surcharge Local | ||||||
13 | Government Distributive Fund during the
month minus the amount | ||||||
14 | paid out of the General Revenue Fund in State warrants
during | ||||||
15 | that same month as refunds to taxpayers for overpayment of | ||||||
16 | liability
under the tax imposed by subsections (a) and (b) of | ||||||
17 | Section 201 of this Act.
| ||||||
18 | (c) Deposits Into Income Tax Refund Fund.
| ||||||
19 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
20 | Department shall
deposit a percentage of the amounts | ||||||
21 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
22 | (3), (4), (4.1), (4.2), (4.3), (4.4), and (5) of Section | ||||||
23 | 201 of this Act into a fund in the State
treasury known as | ||||||
24 | the Income Tax Refund Fund. The Department shall deposit 6%
| ||||||
25 | of such amounts during the period beginning January 1, 1989 | ||||||
26 | and ending on June
30, 1989. Beginning with State fiscal |
| |||||||
| |||||||
1 | year 1990 and for each fiscal year
thereafter, the | ||||||
2 | percentage deposited into the Income Tax Refund Fund during | ||||||
3 | a
fiscal year shall be the Annual Percentage. For fiscal | ||||||
4 | years 1999 through
2001, the Annual Percentage shall be | ||||||
5 | 7.1%.
For fiscal year 2003, the Annual Percentage shall be | ||||||
6 | 8%.
For fiscal year 2004, the Annual Percentage shall be | ||||||
7 | 11.7%. Upon the effective date of this amendatory Act of | ||||||
8 | the 93rd General Assembly, the Annual Percentage shall be | ||||||
9 | 10% for fiscal year 2005. For fiscal year 2006, the Annual | ||||||
10 | Percentage shall be 9.75%. For fiscal
year 2007, the Annual | ||||||
11 | Percentage shall be 9.75%. For fiscal year 2008, the Annual | ||||||
12 | Percentage shall be 7.75%. For fiscal year 2009, the Annual | ||||||
13 | Percentage shall be 9.75%. For all other
fiscal years, the
| ||||||
14 | Annual Percentage shall be calculated as a fraction, the | ||||||
15 | numerator of which
shall be the amount of refunds approved | ||||||
16 | for payment by the Department during
the preceding fiscal | ||||||
17 | year as a result of overpayment of tax liability under
| ||||||
18 | subsections (a) and (b)(1), (2), and (3) , (4), (4.1), | ||||||
19 | (4.2), (4.3), (4.4), and (5) of Section 201 of this Act | ||||||
20 | plus the
amount of such refunds remaining approved but | ||||||
21 | unpaid at the end of the
preceding fiscal year, minus the | ||||||
22 | amounts transferred into the Income Tax
Refund Fund from | ||||||
23 | the Tobacco Settlement Recovery Fund, and
the denominator | ||||||
24 | of which shall be the amounts which will be collected | ||||||
25 | pursuant
to subsections (a) and (b)(1), (2), and (3) , (4), | ||||||
26 | (4.1), (4.2), (4.3), (4.4), and (5) of Section 201 of this |
| |||||||
| |||||||
1 | Act during
the preceding fiscal year; except that in State | ||||||
2 | fiscal year 2002, the Annual
Percentage shall in no event | ||||||
3 | exceed 7.6%. The Director of Revenue shall
certify the | ||||||
4 | Annual Percentage to the Comptroller on the last business | ||||||
5 | day of
the fiscal year immediately preceding the fiscal | ||||||
6 | year for which it is to be
effective.
| ||||||
7 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
8 | Department shall
deposit a percentage of the amounts | ||||||
9 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
10 | (8), (9), (10), (11), (12), (13), and (14), (c) and (d) of | ||||||
11 | Section 201
of this Act into a fund in the State treasury | ||||||
12 | known as the Income Tax
Refund Fund. The Department shall | ||||||
13 | deposit 18% of such amounts during the
period beginning | ||||||
14 | January 1, 1989 and ending on June 30, 1989. Beginning
with | ||||||
15 | State fiscal year 1990 and for each fiscal year thereafter, | ||||||
16 | the
percentage deposited into the Income Tax Refund Fund | ||||||
17 | during a fiscal year
shall be the Annual Percentage. For | ||||||
18 | fiscal years 1999, 2000, and 2001, the
Annual Percentage | ||||||
19 | shall be 19%.
For fiscal year 2003, the Annual Percentage | ||||||
20 | shall be 27%. For fiscal year
2004, the Annual Percentage | ||||||
21 | shall be 32%.
Upon the effective date of this amendatory | ||||||
22 | Act of the 93rd General Assembly, the Annual Percentage | ||||||
23 | shall be 24% for fiscal year 2005.
For fiscal year 2006, | ||||||
24 | the Annual Percentage shall be 20%. For fiscal
year 2007, | ||||||
25 | the Annual Percentage shall be 17.5%. For fiscal year 2008, | ||||||
26 | the Annual Percentage shall be 15.5%. For fiscal year 2009, |
| |||||||
| |||||||
1 | the Annual Percentage shall be 17.5%. For all other fiscal | ||||||
2 | years, the Annual
Percentage shall be calculated
as a | ||||||
3 | fraction, the numerator of which shall be the amount of | ||||||
4 | refunds
approved for payment by the Department during the | ||||||
5 | preceding fiscal year as
a result of overpayment of tax | ||||||
6 | liability under subsections (a) and (b)(6),
(7), and (8) , | ||||||
7 | (9), (10), (11), (12), (13), and (14) , (c) and (d) of | ||||||
8 | Section 201 of this Act plus the
amount of such refunds | ||||||
9 | remaining approved but unpaid at the end of the
preceding | ||||||
10 | fiscal year, and the denominator of
which shall be the | ||||||
11 | amounts which will be collected pursuant to subsections (a)
| ||||||
12 | and (b)(6), (7), and (8) , (9), (10), (11), (12), (13), and | ||||||
13 | (14) , (c) and (d) of Section 201 of this Act during the
| ||||||
14 | preceding fiscal year; except that in State fiscal year | ||||||
15 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
16 | The Director of Revenue shall
certify the Annual Percentage | ||||||
17 | to the Comptroller on the last business day of
the fiscal | ||||||
18 | year immediately preceding the fiscal year for which it is | ||||||
19 | to be
effective.
| ||||||
20 | (3) The Comptroller shall order transferred and the | ||||||
21 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
22 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||||||
23 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
24 | (iii) $35,000,000 in January, 2003.
| ||||||
25 | (d) Expenditures from Income Tax Refund Fund.
| ||||||
26 | (1) Beginning January 1, 1989, money in the Income Tax |
| |||||||
| |||||||
1 | Refund Fund
shall be expended exclusively for the purpose | ||||||
2 | of paying refunds resulting
from overpayment of tax | ||||||
3 | liability under Section 201 of this Act, for paying
rebates | ||||||
4 | under Section 208.1 in the event that the amounts in the | ||||||
5 | Homeowners'
Tax Relief Fund are insufficient for that | ||||||
6 | purpose,
and for
making transfers pursuant to this | ||||||
7 | subsection (d).
| ||||||
8 | (2) The Director shall order payment of refunds | ||||||
9 | resulting from
overpayment of tax liability under Section | ||||||
10 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
11 | extent that amounts collected pursuant
to Section 201 of | ||||||
12 | this Act and transfers pursuant to this subsection (d)
and | ||||||
13 | item (3) of subsection (c) have been deposited and retained | ||||||
14 | in the
Fund.
| ||||||
15 | (3) As soon as possible after the end of each fiscal | ||||||
16 | year, the Director
shall
order transferred and the State | ||||||
17 | Treasurer and State Comptroller shall
transfer from the | ||||||
18 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
19 | Replacement Fund an amount, certified by the Director to | ||||||
20 | the Comptroller,
equal to the excess of the amount | ||||||
21 | collected pursuant to subsections (c) and
(d) of Section | ||||||
22 | 201 of this Act deposited into the Income Tax Refund Fund
| ||||||
23 | during the fiscal year over the amount of refunds resulting | ||||||
24 | from
overpayment of tax liability under subsections (c) and | ||||||
25 | (d) of Section 201
of this Act paid from the Income Tax | ||||||
26 | Refund Fund during the fiscal year.
|
| |||||||
| |||||||
1 | (4) As soon as possible after the end of each fiscal | ||||||
2 | year, the Director shall
order transferred and the State | ||||||
3 | Treasurer and State Comptroller shall
transfer from the | ||||||
4 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
5 | Refund Fund an amount, certified by the Director to the | ||||||
6 | Comptroller, equal
to the excess of the amount of refunds | ||||||
7 | resulting from overpayment of tax
liability under | ||||||
8 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
9 | from the Income Tax Refund Fund during the fiscal year over | ||||||
10 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
11 | Section 201 of this Act
deposited into the Income Tax | ||||||
12 | Refund Fund during the fiscal year.
| ||||||
13 | (4.5) As soon as possible after the end of fiscal year | ||||||
14 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
15 | order transferred and the State Treasurer and
State | ||||||
16 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
17 | to the General
Revenue Fund any surplus remaining in the | ||||||
18 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
19 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
20 | attributable to transfers under item (3) of subsection (c) | ||||||
21 | less refunds
resulting from the earned income tax credit.
| ||||||
22 | (5) This Act shall constitute an irrevocable and | ||||||
23 | continuing
appropriation from the Income Tax Refund Fund | ||||||
24 | for the purpose of paying
refunds upon the order of the | ||||||
25 | Director in accordance with the provisions of
this Section.
| ||||||
26 | (e) Deposits into the Education Assistance Fund and the |
| |||||||
| |||||||
1 | Income Tax
Surcharge Local Government Distributive Fund.
| ||||||
2 | On July 1, 1991, and thereafter, of the amounts collected | ||||||
3 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
4 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
5 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
6 | State Treasury. Beginning July 1, 1991,
and continuing through | ||||||
7 | January 31, 1993, of the amounts collected pursuant to
| ||||||
8 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
9 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
10 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
11 | Local Government Distributive Fund in the State
Treasury. | ||||||
12 | Beginning February 1, 1993 and continuing through June 30, | ||||||
13 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
14 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
15 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
16 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
17 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
18 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
19 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
20 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
21 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
22 | Local Government Distributive Fund in the State Treasury.
| ||||||
23 | (Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-707, | ||||||
24 | eff. 1-11-08; 95-744, eff. 7-18-08; revised 10-23-08.)
| ||||||
25 | Section 99. Effective date. This Act takes effect upon | ||||||
26 | becoming law.
|