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91_HB2980enr
HB2980 Enrolled LRB9107003WHdv
1 AN ACT in relation to medical care savings accounts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Medical Care Savings Account Act of 2000.
6 Section 3. Programs under prior Act. Programs
7 established under the Medical Care Savings Account Act are
8 subject to and shall be governed by this Act.
9 Section 5. Definitions. In this Act:
10 "Account administrator" means any of the following:
11 (1) A national or state chartered bank, a federal
12 or state chartered savings and loan association, a
13 federal or state chartered savings bank, or a federal or
14 state chartered credit union.
15 (2) A trust company authorized to act as a
16 fiduciary.
17 (3) An insurance company authorized to do business
18 in this State under the Illinois Insurance Code or a
19 health maintenance organization authorized to do business
20 in this State under the Health Maintenance Organization
21 Act.
22 (4) A dealer, salesperson, or investment adviser
23 registered under the Illinois Securities Law of 1953.
24 (5) An administrator as defined in Section 511.101
25 of the Illinois Insurance Code who is licensed under
26 Article XXXI 1/4 of that Code.
27 (6) A certified public accountant registered under
28 the Illinois Public Accounting Act.
29 (7) An attorney licensed to practice in this State.
30 (8) An employer, if the employer has a self-insured
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1 health plan under the federal Employee Retirement Income
2 Security Act of 1974 (ERISA).
3 (9) An employer that participates in the medical
4 care savings account program.
5 "Deductible" means the total deductible for an employee
6 and all the dependents of that employee for a calendar year.
7 "Dependent" means the spouse of the employee or a child
8 of the employee if the child is any of the following:
9 (1) Under 19 years of age, or under 23 years of age
10 and enrolled as a full-time student at an accredited
11 college or university.
12 (2) Legally entitled to the provision of proper or
13 necessary subsistence, education, medical care, or other
14 care necessary for his or her health, guidance, or
15 well-being and not otherwise emancipated,
16 self-supporting, married, or a member of the armed forces
17 of the United States.
18 (3) Mentally or physically incapacitated to the
19 extent that he or she is not self-sufficient.
20 "Domicile" means a place where an individual has his or
21 her true, fixed, and permanent home and principal
22 establishment, to which, whenever absent, he or she intends
23 to return. Domicile continues until another permanent home
24 or principal establishment is established.
25 "Eligible medical expense" means an expense paid by the
26 taxpayer for medical care described in Section 213(d) of the
27 Internal Revenue Code.
28 "Employee" means the individual for whose benefit or for
29 the benefit of whose dependents a medical care savings
30 account is established. Employee includes a self-employed
31 individual.
32 "Higher deductible" means a deductible subject to a
33 minimum and maximum established for 1999 by the Department of
34 Revenue under the Medical Care Savings Account Act. The
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1 minimum and maximum shall be adjusted for 2000 and annually
2 thereafter by the Department of Revenue to reflect increases
3 in the consumer price index for the United States as defined
4 and officially reported by the United States Department of
5 Labor.
6 "Medical care savings account" or "account" means an
7 account established in this State pursuant to a medical care
8 savings account program to pay the eligible medical expenses
9 of an employee and his or her dependents.
10 "Medical care savings account program" or "program" means
11 a program that includes all of the following:
12 (1) The purchase by an employer of a qualified
13 higher deductible health plan for the benefit of an
14 employee and his or her dependents.
15 (2) The contribution on behalf of an employee into
16 a medical care savings account by his or her employer of
17 all or part of the premium differential realized by the
18 employer based on the purchase of a qualified higher
19 deductible health plan for the benefit of the employee.
20 An employer that did not previously provide a health
21 coverage policy, certificate, or contract for his or her
22 employees may contribute all or part of the deductible of
23 the plan purchased pursuant to paragraph (1). A
24 contribution under this paragraph may not exceed the
25 maximum amounts established for 1999 by the Department of
26 Revenue for 2 taxpayers filing a joint return, if each
27 taxpayer has a medical care savings account but neither
28 is covered by the other's health coverage, and for all
29 other cases. The maximum amounts shall be adjusted for
30 2000 and annually thereafter by the Department of Revenue
31 to reflect increases in the consumer price index for the
32 United States as defined and officially reported by the
33 United States Department of Labor.
34 (3) An account administrator to administer the
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1 medical care savings account from which payment of claims
2 is made. Not more than 30 days after an account
3 administrator begins to administer an account, the
4 administrator shall notify in writing each employee on
5 whose behalf the administrator administers an account of
6 the date of the last business day of the administrator's
7 business year.
8 "Qualified higher deductible health plan" means a health
9 coverage policy, certificate, or contract that provides for
10 payments for covered benefits that exceed the higher
11 deductible and that is purchased by an employer for the
12 benefit of an employee for whom the employer makes deposits
13 into a medical care savings account.
14 Section 10. Program offer; tax treatment.
15 (a) For tax years ending on or after December 31, 2000,
16 an employer, except as otherwise provided by statute,
17 contract, or a collective bargaining agreement, may offer a
18 medical care savings account program to the employer's
19 employees.
20 (b) Before making any contribution to an account, an
21 employer that offers a medical care savings account program
22 shall inform all its employees in writing of the federal tax
23 status of contributions made pursuant to this Act.
24 (c) Except as provided in Section 20, principal
25 contributed to and interest earned on a medical care savings
26 account and money reimbursed to an employee for eligible
27 medical expenses are exempt from taxation under the
28 Illinois Income Tax Act as provided in that Act.
29 Section 15. Use of account moneys.
30 (a) The account administrator shall utilize the moneys
31 held in a medical care savings account solely for the purpose
32 of paying the medical expenses of the employee or his or her
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1 dependents or to purchase a health coverage policy,
2 certificate, or contract if the employee does not otherwise
3 have health insurance coverage. Moneys held in a medical care
4 savings account may not be used to cover medical expenses of
5 the employee or his or her dependents that are otherwise
6 covered, including but not limited to medical expenses
7 covered pursuant to an automobile insurance policy, workers'
8 compensation insurance policy or self-insured plan, or
9 another health coverage policy, certificate, or contract.
10 (b) The employee may submit documentation of medical
11 expenses paid by the employee in the tax year to the account
12 administrator, and the account administrator shall
13 reimburse the employee from the employee's account for
14 eligible medical expenses.
15 (c) If an employer makes contributions to a medical
16 care savings account program on a periodic installment
17 basis, the employer may advance to an employee, interest
18 free, an amount necessary to cover medical expenses incurred
19 that exceed the amount in the employee's medical care savings
20 account when the expense is incurred if the employee agrees
21 to repay the advance from future installments or when he or
22 she ceases to be an employee of the employer.
23 Section 20. Withdrawals from account.
24 (a) Notwithstanding subsection (b) and subject to
25 subsection (c), an employee may withdraw money from his or
26 her medical care savings account for any purpose other than a
27 purpose described in subsection (a) of Section 15 only on the
28 last business day of the account administrator's business
29 year. Money withdrawn pursuant to this subsection is income
30 for purposes of the Illinois Income Tax Act in the taxable
31 year of the withdrawal, as provided in that Act.
32 (b) Subject to subsection (c), if the employee withdraws
33 money for any purpose other than a purpose described in
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1 subsection (a) of Section 15 at any other time, all of the
2 following apply:
3 (1) The amount of the withdrawal is income for
4 purposes of the Illinois Income Tax Act in the taxable
5 year of the withdrawal, as provided in that Act.
6 (2) The administrator shall withhold and on behalf
7 of the employee shall pay a penalty to the Department of
8 Revenue equal to 10% of the amount of the withdrawal.
9 (3) Interest earned on the account during the
10 taxable year in which a withdrawal under this subsection
11 is made is income for purposes of the Illinois Income Tax
12 Act, as provided in that Act.
13 (c) The amount of a disbursement of any assets of a
14 medical care savings account pursuant to a filing for
15 protection under Title 11 of the United States Code, 11
16 U.S.C. 101 to 1330, by an employee or person for whose
17 benefit the account was established is not considered a
18 withdrawal for purposes of this Section. The amount of a
19 disbursement is not subject to taxation under the Illinois
20 Income Tax Act, and subsection (b) does not apply.
21 (d) Upon the death of the employee, the account
22 administrator shall distribute the principal and accumulated
23 interest of the medical care savings account to the estate
24 of the employee.
25 (e) If (i) an employee is no longer employed by an
26 employer that participates in a medical care savings account
27 program, (ii) the employee, not more than 60 days after his
28 or her final day of employment, transfers the account to a
29 new account administrator or requests in writing to the
30 former employer's account administrator that the account
31 remain with that administrator, and (iii) that account
32 administrator agrees to retain the account, then the money in
33 the medical care savings account may be utilized for the
34 benefit of the employee or his or her dependents subject to
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1 this Act and remains exempt from taxation pursuant to this
2 Act. Not more than 30 days after the expiration of the 60
3 days, if an account administrator has not accepted the
4 former employee's account, the employer shall mail a check to
5 the former employee, at the employee's last known address,
6 for an amount equal to the amount in the account on that day,
7 and that amount is subject to taxation pursuant to subsection
8 (a) of this Section but is not subject to the penalty
9 under paragraph (2) of subsection (b) of this Section. If an
10 employee becomes employed with a different employer that
11 participates in a medical care savings account program, the
12 employee may transfer his or her medical care savings
13 account to that new employer's account administrator.
14 Section 30. Administrator; fiduciary duty. An account
15 administrator shall discharge his or her duties as a
16 fiduciary in a manner consistent with the fiduciary standards
17 required by 29 U.S.C 1104 and shall not engage in any
18 self-dealing transactions in the investment of account
19 assets.
20 Section 85. Repealer. This Act is repealed on January
21 1, 2010.
22 Section 90. The Illinois Income Tax Act is amended by
23 changing Section 203 as follows:
24 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
25 Sec. 203. Base income defined.
26 (a) Individuals.
27 (1) In general. In the case of an individual, base
28 income means an amount equal to the taxpayer's adjusted
29 gross income for the taxable year as modified by
30 paragraph (2).
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1 (2) Modifications. The adjusted gross income
2 referred to in paragraph (1) shall be modified by adding
3 thereto the sum of the following amounts:
4 (A) An amount equal to all amounts paid or
5 accrued to the taxpayer as interest or dividends
6 during the taxable year to the extent excluded from
7 gross income in the computation of adjusted gross
8 income, except stock dividends of qualified public
9 utilities described in Section 305(e) of the
10 Internal Revenue Code;
11 (B) An amount equal to the amount of tax
12 imposed by this Act to the extent deducted from
13 gross income in the computation of adjusted gross
14 income for the taxable year;
15 (C) An amount equal to the amount received
16 during the taxable year as a recovery or refund of
17 real property taxes paid with respect to the
18 taxpayer's principal residence under the Revenue Act
19 of 1939 and for which a deduction was previously
20 taken under subparagraph (L) of this paragraph (2)
21 prior to July 1, 1991, the retrospective application
22 date of Article 4 of Public Act 87-17. In the case
23 of multi-unit or multi-use structures and farm
24 dwellings, the taxes on the taxpayer's principal
25 residence shall be that portion of the total taxes
26 for the entire property which is attributable to
27 such principal residence;
28 (D) An amount equal to the amount of the
29 capital gain deduction allowable under the Internal
30 Revenue Code, to the extent deducted from gross
31 income in the computation of adjusted gross income;
32 (D-5) An amount, to the extent not included in
33 adjusted gross income, equal to the amount of money
34 withdrawn by the taxpayer in the taxable year from a
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1 medical care savings account and the interest earned
2 on the account in the taxable year of a withdrawal
3 pursuant to subsection (b) of Section 20 of the
4 Medical Care Savings Account Act or subsection (b)
5 of Section 20 of the Medical Care Savings Account
6 Act of 2000; and
7 (D-10) For taxable years ending after December
8 31, 1997, an amount equal to any eligible
9 remediation costs that the individual deducted in
10 computing adjusted gross income and for which the
11 individual claims a credit under subsection (l) of
12 Section 201;
13 and by deducting from the total so obtained the sum of
14 the following amounts:
15 (E) Any amount included in such total in
16 respect of any compensation (including but not
17 limited to any compensation paid or accrued to a
18 serviceman while a prisoner of war or missing in
19 action) paid to a resident by reason of being on
20 active duty in the Armed Forces of the United States
21 and in respect of any compensation paid or accrued
22 to a resident who as a governmental employee was a
23 prisoner of war or missing in action, and in respect
24 of any compensation paid to a resident in 1971 or
25 thereafter for annual training performed pursuant to
26 Sections 502 and 503, Title 32, United States Code
27 as a member of the Illinois National Guard;
28 (F) An amount equal to all amounts included in
29 such total pursuant to the provisions of Sections
30 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
31 408 of the Internal Revenue Code, or included in
32 such total as distributions under the provisions of
33 any retirement or disability plan for employees of
34 any governmental agency or unit, or retirement
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1 payments to retired partners, which payments are
2 excluded in computing net earnings from self
3 employment by Section 1402 of the Internal Revenue
4 Code and regulations adopted pursuant thereto;
5 (G) The valuation limitation amount;
6 (H) An amount equal to the amount of any tax
7 imposed by this Act which was refunded to the
8 taxpayer and included in such total for the taxable
9 year;
10 (I) An amount equal to all amounts included in
11 such total pursuant to the provisions of Section 111
12 of the Internal Revenue Code as a recovery of items
13 previously deducted from adjusted gross income in
14 the computation of taxable income;
15 (J) An amount equal to those dividends
16 included in such total which were paid by a
17 corporation which conducts business operations in an
18 Enterprise Zone or zones created under the Illinois
19 Enterprise Zone Act, and conducts substantially all
20 of its operations in an Enterprise Zone or zones;
21 (K) An amount equal to those dividends
22 included in such total that were paid by a
23 corporation that conducts business operations in a
24 federally designated Foreign Trade Zone or Sub-Zone
25 and that is designated a High Impact Business
26 located in Illinois; provided that dividends
27 eligible for the deduction provided in subparagraph
28 (J) of paragraph (2) of this subsection shall not be
29 eligible for the deduction provided under this
30 subparagraph (K);
31 (L) For taxable years ending after December
32 31, 1983, an amount equal to all social security
33 benefits and railroad retirement benefits included
34 in such total pursuant to Sections 72(r) and 86 of
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1 the Internal Revenue Code;
2 (M) With the exception of any amounts
3 subtracted under subparagraph (N), an amount equal
4 to the sum of all amounts disallowed as deductions
5 by (i) Sections 171(a) (2), and 265(2) of the
6 Internal Revenue Code of 1954, as now or hereafter
7 amended, and all amounts of expenses allocable to
8 interest and disallowed as deductions by Section
9 265(1) of the Internal Revenue Code of 1954, as now
10 or hereafter amended; and (ii) for taxable years
11 ending on or after August 13, 1999 the effective
12 date of this amendatory Act of the 91st General
13 Assembly, Sections 171(a)(2), 265, 280C, and
14 832(b)(5)(B)(i) of the Internal Revenue Code; the
15 provisions of this subparagraph are exempt from the
16 provisions of Section 250;
17 (N) An amount equal to all amounts included in
18 such total which are exempt from taxation by this
19 State either by reason of its statutes or
20 Constitution or by reason of the Constitution,
21 treaties or statutes of the United States; provided
22 that, in the case of any statute of this State that
23 exempts income derived from bonds or other
24 obligations from the tax imposed under this Act, the
25 amount exempted shall be the interest net of bond
26 premium amortization;
27 (O) An amount equal to any contribution made
28 to a job training project established pursuant to
29 the Tax Increment Allocation Redevelopment Act;
30 (P) An amount equal to the amount of the
31 deduction used to compute the federal income tax
32 credit for restoration of substantial amounts held
33 under claim of right for the taxable year pursuant
34 to Section 1341 of the Internal Revenue Code of
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1 1986;
2 (Q) An amount equal to any amounts included in
3 such total, received by the taxpayer as an
4 acceleration in the payment of life, endowment or
5 annuity benefits in advance of the time they would
6 otherwise be payable as an indemnity for a terminal
7 illness;
8 (R) An amount equal to the amount of any
9 federal or State bonus paid to veterans of the
10 Persian Gulf War;
11 (S) An amount, to the extent included in
12 adjusted gross income, equal to the amount of a
13 contribution made in the taxable year on behalf of
14 the taxpayer to a medical care savings account
15 established under the Medical Care Savings Account
16 Act or the Medical Care Savings Account Act of 2000
17 to the extent the contribution is accepted by the
18 account administrator as provided in that Act;
19 (T) An amount, to the extent included in
20 adjusted gross income, equal to the amount of
21 interest earned in the taxable year on a medical
22 care savings account established under the Medical
23 Care Savings Account Act or the Medical Care Savings
24 Account Act of 2000 on behalf of the taxpayer, other
25 than interest added pursuant to item (D-5) of this
26 paragraph (2);
27 (U) For one taxable year beginning on or after
28 January 1, 1994, an amount equal to the total amount
29 of tax imposed and paid under subsections (a) and
30 (b) of Section 201 of this Act on grant amounts
31 received by the taxpayer under the Nursing Home
32 Grant Assistance Act during the taxpayer's taxable
33 years 1992 and 1993;
34 (V) Beginning with tax years ending on or
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1 after December 31, 1995 and ending with tax years
2 ending on or before December 31, 2004, an amount
3 equal to the amount paid by a taxpayer who is a
4 self-employed taxpayer, a partner of a partnership,
5 or a shareholder in a Subchapter S corporation for
6 health insurance or long-term care insurance for
7 that taxpayer or that taxpayer's spouse or
8 dependents, to the extent that the amount paid for
9 that health insurance or long-term care insurance
10 may be deducted under Section 213 of the Internal
11 Revenue Code of 1986, has not been deducted on the
12 federal income tax return of the taxpayer, and does
13 not exceed the taxable income attributable to that
14 taxpayer's income, self-employment income, or
15 Subchapter S corporation income; except that no
16 deduction shall be allowed under this item (V) if
17 the taxpayer is eligible to participate in any
18 health insurance or long-term care insurance plan of
19 an employer of the taxpayer or the taxpayer's
20 spouse. The amount of the health insurance and
21 long-term care insurance subtracted under this item
22 (V) shall be determined by multiplying total health
23 insurance and long-term care insurance premiums paid
24 by the taxpayer times a number that represents the
25 fractional percentage of eligible medical expenses
26 under Section 213 of the Internal Revenue Code of
27 1986 not actually deducted on the taxpayer's federal
28 income tax return;
29 (W) For taxable years beginning on or after
30 January 1, 1998, all amounts included in the
31 taxpayer's federal gross income in the taxable year
32 from amounts converted from a regular IRA to a Roth
33 IRA. This paragraph is exempt from the provisions of
34 Section 250; and
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1 (X) For taxable year 1999 and thereafter, an
2 amount equal to the amount of any (i) distributions,
3 to the extent includible in gross income for federal
4 income tax purposes, made to the taxpayer because of
5 his or her status as a victim of persecution for
6 racial or religious reasons by Nazi Germany or any
7 other Axis regime or as an heir of the victim and
8 (ii) items of income, to the extent includible in
9 gross income for federal income tax purposes,
10 attributable to, derived from or in any way related
11 to assets stolen from, hidden from, or otherwise
12 lost to a victim of persecution for racial or
13 religious reasons by Nazi Germany or any other Axis
14 regime immediately prior to, during, and immediately
15 after World War II, including, but not limited to,
16 interest on the proceeds receivable as insurance
17 under policies issued to a victim of persecution for
18 racial or religious reasons by Nazi Germany or any
19 other Axis regime by European insurance companies
20 immediately prior to and during World War II;
21 provided, however, this subtraction from federal
22 adjusted gross income does not apply to assets
23 acquired with such assets or with the proceeds from
24 the sale of such assets; provided, further, this
25 paragraph shall only apply to a taxpayer who was the
26 first recipient of such assets after their recovery
27 and who is a victim of persecution for racial or
28 religious reasons by Nazi Germany or any other Axis
29 regime or as an heir of the victim. The amount of
30 and the eligibility for any public assistance,
31 benefit, or similar entitlement is not affected by
32 the inclusion of items (i) and (ii) of this
33 paragraph in gross income for federal income tax
34 purposes. This paragraph is exempt from the
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1 provisions of Section 250.
2 (b) Corporations.
3 (1) In general. In the case of a corporation, base
4 income means an amount equal to the taxpayer's taxable
5 income for the taxable year as modified by paragraph (2).
6 (2) Modifications. The taxable income referred to
7 in paragraph (1) shall be modified by adding thereto the
8 sum of the following amounts:
9 (A) An amount equal to all amounts paid or
10 accrued to the taxpayer as interest and all
11 distributions received from regulated investment
12 companies during the taxable year to the extent
13 excluded from gross income in the computation of
14 taxable income;
15 (B) An amount equal to the amount of tax
16 imposed by this Act to the extent deducted from
17 gross income in the computation of taxable income
18 for the taxable year;
19 (C) In the case of a regulated investment
20 company, an amount equal to the excess of (i) the
21 net long-term capital gain for the taxable year,
22 over (ii) the amount of the capital gain dividends
23 designated as such in accordance with Section
24 852(b)(3)(C) of the Internal Revenue Code and any
25 amount designated under Section 852(b)(3)(D) of the
26 Internal Revenue Code, attributable to the taxable
27 year (this amendatory Act of 1995 (Public Act 89-89)
28 is declarative of existing law and is not a new
29 enactment);
30 (D) The amount of any net operating loss
31 deduction taken in arriving at taxable income, other
32 than a net operating loss carried forward from a
33 taxable year ending prior to December 31, 1986;
34 (E) For taxable years in which a net operating
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1 loss carryback or carryforward from a taxable year
2 ending prior to December 31, 1986 is an element of
3 taxable income under paragraph (1) of subsection (e)
4 or subparagraph (E) of paragraph (2) of subsection
5 (e), the amount by which addition modifications
6 other than those provided by this subparagraph (E)
7 exceeded subtraction modifications in such earlier
8 taxable year, with the following limitations applied
9 in the order that they are listed:
10 (i) the addition modification relating to
11 the net operating loss carried back or forward
12 to the taxable year from any taxable year
13 ending prior to December 31, 1986 shall be
14 reduced by the amount of addition modification
15 under this subparagraph (E) which related to
16 that net operating loss and which was taken
17 into account in calculating the base income of
18 an earlier taxable year, and
19 (ii) the addition modification relating
20 to the net operating loss carried back or
21 forward to the taxable year from any taxable
22 year ending prior to December 31, 1986 shall
23 not exceed the amount of such carryback or
24 carryforward;
25 For taxable years in which there is a net
26 operating loss carryback or carryforward from more
27 than one other taxable year ending prior to December
28 31, 1986, the addition modification provided in this
29 subparagraph (E) shall be the sum of the amounts
30 computed independently under the preceding
31 provisions of this subparagraph (E) for each such
32 taxable year; and
33 (E-5) For taxable years ending after December
34 31, 1997, an amount equal to any eligible
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1 remediation costs that the corporation deducted in
2 computing adjusted gross income and for which the
3 corporation claims a credit under subsection (l) of
4 Section 201;
5 and by deducting from the total so obtained the sum of
6 the following amounts:
7 (F) An amount equal to the amount of any tax
8 imposed by this Act which was refunded to the
9 taxpayer and included in such total for the taxable
10 year;
11 (G) An amount equal to any amount included in
12 such total under Section 78 of the Internal Revenue
13 Code;
14 (H) In the case of a regulated investment
15 company, an amount equal to the amount of exempt
16 interest dividends as defined in subsection (b) (5)
17 of Section 852 of the Internal Revenue Code, paid to
18 shareholders for the taxable year;
19 (I) With the exception of any amounts
20 subtracted under subparagraph (J), an amount equal
21 to the sum of all amounts disallowed as deductions
22 by (i) Sections 171(a) (2), and 265(a)(2) and
23 amounts disallowed as interest expense by Section
24 291(a)(3) of the Internal Revenue Code, as now or
25 hereafter amended, and all amounts of expenses
26 allocable to interest and disallowed as deductions
27 by Section 265(a)(1) of the Internal Revenue Code,
28 as now or hereafter amended; and (ii) for taxable
29 years ending on or after August 13, 1999 the
30 effective date of this amendatory Act of the 91st
31 General Assembly, Sections 171(a)(2), 265, 280C, and
32 832(b)(5)(B)(i) of the Internal Revenue Code; the
33 provisions of this subparagraph are exempt from the
34 provisions of Section 250;
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1 (J) An amount equal to all amounts included in
2 such total which are exempt from taxation by this
3 State either by reason of its statutes or
4 Constitution or by reason of the Constitution,
5 treaties or statutes of the United States; provided
6 that, in the case of any statute of this State that
7 exempts income derived from bonds or other
8 obligations from the tax imposed under this Act, the
9 amount exempted shall be the interest net of bond
10 premium amortization;
11 (K) An amount equal to those dividends
12 included in such total which were paid by a
13 corporation which conducts business operations in an
14 Enterprise Zone or zones created under the Illinois
15 Enterprise Zone Act and conducts substantially all
16 of its operations in an Enterprise Zone or zones;
17 (L) An amount equal to those dividends
18 included in such total that were paid by a
19 corporation that conducts business operations in a
20 federally designated Foreign Trade Zone or Sub-Zone
21 and that is designated a High Impact Business
22 located in Illinois; provided that dividends
23 eligible for the deduction provided in subparagraph
24 (K) of paragraph 2 of this subsection shall not be
25 eligible for the deduction provided under this
26 subparagraph (L);
27 (M) For any taxpayer that is a financial
28 organization within the meaning of Section 304(c) of
29 this Act, an amount included in such total as
30 interest income from a loan or loans made by such
31 taxpayer to a borrower, to the extent that such a
32 loan is secured by property which is eligible for
33 the Enterprise Zone Investment Credit. To determine
34 the portion of a loan or loans that is secured by
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1 property eligible for a Section 201(h) investment
2 credit to the borrower, the entire principal amount
3 of the loan or loans between the taxpayer and the
4 borrower should be divided into the basis of the
5 Section 201(h) investment credit property which
6 secures the loan or loans, using for this purpose
7 the original basis of such property on the date that
8 it was placed in service in the Enterprise Zone.
9 The subtraction modification available to taxpayer
10 in any year under this subsection shall be that
11 portion of the total interest paid by the borrower
12 with respect to such loan attributable to the
13 eligible property as calculated under the previous
14 sentence;
15 (M-1) For any taxpayer that is a financial
16 organization within the meaning of Section 304(c) of
17 this Act, an amount included in such total as
18 interest income from a loan or loans made by such
19 taxpayer to a borrower, to the extent that such a
20 loan is secured by property which is eligible for
21 the High Impact Business Investment Credit. To
22 determine the portion of a loan or loans that is
23 secured by property eligible for a Section 201(i)
24 investment credit to the borrower, the entire
25 principal amount of the loan or loans between the
26 taxpayer and the borrower should be divided into the
27 basis of the Section 201(i) investment credit
28 property which secures the loan or loans, using for
29 this purpose the original basis of such property on
30 the date that it was placed in service in a
31 federally designated Foreign Trade Zone or Sub-Zone
32 located in Illinois. No taxpayer that is eligible
33 for the deduction provided in subparagraph (M) of
34 paragraph (2) of this subsection shall be eligible
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1 for the deduction provided under this subparagraph
2 (M-1). The subtraction modification available to
3 taxpayers in any year under this subsection shall be
4 that portion of the total interest paid by the
5 borrower with respect to such loan attributable to
6 the eligible property as calculated under the
7 previous sentence;
8 (N) Two times any contribution made during the
9 taxable year to a designated zone organization to
10 the extent that the contribution (i) qualifies as a
11 charitable contribution under subsection (c) of
12 Section 170 of the Internal Revenue Code and (ii)
13 must, by its terms, be used for a project approved
14 by the Department of Commerce and Community Affairs
15 under Section 11 of the Illinois Enterprise Zone
16 Act;
17 (O) An amount equal to: (i) 85% for taxable
18 years ending on or before December 31, 1992, or, a
19 percentage equal to the percentage allowable under
20 Section 243(a)(1) of the Internal Revenue Code of
21 1986 for taxable years ending after December 31,
22 1992, of the amount by which dividends included in
23 taxable income and received from a corporation that
24 is not created or organized under the laws of the
25 United States or any state or political subdivision
26 thereof, including, for taxable years ending on or
27 after December 31, 1988, dividends received or
28 deemed received or paid or deemed paid under
29 Sections 951 through 964 of the Internal Revenue
30 Code, exceed the amount of the modification provided
31 under subparagraph (G) of paragraph (2) of this
32 subsection (b) which is related to such dividends;
33 plus (ii) 100% of the amount by which dividends,
34 included in taxable income and received, including,
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1 for taxable years ending on or after December 31,
2 1988, dividends received or deemed received or paid
3 or deemed paid under Sections 951 through 964 of the
4 Internal Revenue Code, from any such corporation
5 specified in clause (i) that would but for the
6 provisions of Section 1504 (b) (3) of the Internal
7 Revenue Code be treated as a member of the
8 affiliated group which includes the dividend
9 recipient, exceed the amount of the modification
10 provided under subparagraph (G) of paragraph (2) of
11 this subsection (b) which is related to such
12 dividends;
13 (P) An amount equal to any contribution made
14 to a job training project established pursuant to
15 the Tax Increment Allocation Redevelopment Act;
16 (Q) An amount equal to the amount of the
17 deduction used to compute the federal income tax
18 credit for restoration of substantial amounts held
19 under claim of right for the taxable year pursuant
20 to Section 1341 of the Internal Revenue Code of
21 1986; and
22 (R) In the case of an attorney-in-fact with
23 respect to whom an interinsurer or a reciprocal
24 insurer has made the election under Section 835 of
25 the Internal Revenue Code, 26 U.S.C. 835, an amount
26 equal to the excess, if any, of the amounts paid or
27 incurred by that interinsurer or reciprocal insurer
28 in the taxable year to the attorney-in-fact over the
29 deduction allowed to that interinsurer or reciprocal
30 insurer with respect to the attorney-in-fact under
31 Section 835(b) of the Internal Revenue Code for the
32 taxable year.
33 (3) Special rule. For purposes of paragraph (2)
34 (A), "gross income" in the case of a life insurance
HB2980 Enrolled -22- LRB9107003WHdv
1 company, for tax years ending on and after December 31,
2 1994, shall mean the gross investment income for the
3 taxable year.
4 (c) Trusts and estates.
5 (1) In general. In the case of a trust or estate,
6 base income means an amount equal to the taxpayer's
7 taxable income for the taxable year as modified by
8 paragraph (2).
9 (2) Modifications. Subject to the provisions of
10 paragraph (3), the taxable income referred to in
11 paragraph (1) shall be modified by adding thereto the sum
12 of the following amounts:
13 (A) An amount equal to all amounts paid or
14 accrued to the taxpayer as interest or dividends
15 during the taxable year to the extent excluded from
16 gross income in the computation of taxable income;
17 (B) In the case of (i) an estate, $600; (ii) a
18 trust which, under its governing instrument, is
19 required to distribute all of its income currently,
20 $300; and (iii) any other trust, $100, but in each
21 such case, only to the extent such amount was
22 deducted in the computation of taxable income;
23 (C) An amount equal to the amount of tax
24 imposed by this Act to the extent deducted from
25 gross income in the computation of taxable income
26 for the taxable year;
27 (D) The amount of any net operating loss
28 deduction taken in arriving at taxable income, other
29 than a net operating loss carried forward from a
30 taxable year ending prior to December 31, 1986;
31 (E) For taxable years in which a net operating
32 loss carryback or carryforward from a taxable year
33 ending prior to December 31, 1986 is an element of
34 taxable income under paragraph (1) of subsection (e)
HB2980 Enrolled -23- LRB9107003WHdv
1 or subparagraph (E) of paragraph (2) of subsection
2 (e), the amount by which addition modifications
3 other than those provided by this subparagraph (E)
4 exceeded subtraction modifications in such taxable
5 year, with the following limitations applied in the
6 order that they are listed:
7 (i) the addition modification relating to
8 the net operating loss carried back or forward
9 to the taxable year from any taxable year
10 ending prior to December 31, 1986 shall be
11 reduced by the amount of addition modification
12 under this subparagraph (E) which related to
13 that net operating loss and which was taken
14 into account in calculating the base income of
15 an earlier taxable year, and
16 (ii) the addition modification relating
17 to the net operating loss carried back or
18 forward to the taxable year from any taxable
19 year ending prior to December 31, 1986 shall
20 not exceed the amount of such carryback or
21 carryforward;
22 For taxable years in which there is a net
23 operating loss carryback or carryforward from more
24 than one other taxable year ending prior to December
25 31, 1986, the addition modification provided in this
26 subparagraph (E) shall be the sum of the amounts
27 computed independently under the preceding
28 provisions of this subparagraph (E) for each such
29 taxable year;
30 (F) For taxable years ending on or after
31 January 1, 1989, an amount equal to the tax deducted
32 pursuant to Section 164 of the Internal Revenue Code
33 if the trust or estate is claiming the same tax for
34 purposes of the Illinois foreign tax credit under
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1 Section 601 of this Act;
2 (G) An amount equal to the amount of the
3 capital gain deduction allowable under the Internal
4 Revenue Code, to the extent deducted from gross
5 income in the computation of taxable income; and
6 (G-5) For taxable years ending after December
7 31, 1997, an amount equal to any eligible
8 remediation costs that the trust or estate deducted
9 in computing adjusted gross income and for which the
10 trust or estate claims a credit under subsection (l)
11 of Section 201;
12 and by deducting from the total so obtained the sum of
13 the following amounts:
14 (H) An amount equal to all amounts included in
15 such total pursuant to the provisions of Sections
16 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
17 408 of the Internal Revenue Code or included in such
18 total as distributions under the provisions of any
19 retirement or disability plan for employees of any
20 governmental agency or unit, or retirement payments
21 to retired partners, which payments are excluded in
22 computing net earnings from self employment by
23 Section 1402 of the Internal Revenue Code and
24 regulations adopted pursuant thereto;
25 (I) The valuation limitation amount;
26 (J) An amount equal to the amount of any tax
27 imposed by this Act which was refunded to the
28 taxpayer and included in such total for the taxable
29 year;
30 (K) An amount equal to all amounts included in
31 taxable income as modified by subparagraphs (A),
32 (B), (C), (D), (E), (F) and (G) which are exempt
33 from taxation by this State either by reason of its
34 statutes or Constitution or by reason of the
HB2980 Enrolled -25- LRB9107003WHdv
1 Constitution, treaties or statutes of the United
2 States; provided that, in the case of any statute of
3 this State that exempts income derived from bonds or
4 other obligations from the tax imposed under this
5 Act, the amount exempted shall be the interest net
6 of bond premium amortization;
7 (L) With the exception of any amounts
8 subtracted under subparagraph (K), an amount equal
9 to the sum of all amounts disallowed as deductions
10 by (i) Sections 171(a) (2) and 265(a)(2) of the
11 Internal Revenue Code, as now or hereafter amended,
12 and all amounts of expenses allocable to interest
13 and disallowed as deductions by Section 265(1) of
14 the Internal Revenue Code of 1954, as now or
15 hereafter amended; and (ii) for taxable years ending
16 on or after August 13, 1999 the effective date of
17 this amendatory Act of the 91st General Assembly,
18 Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i)
19 of the Internal Revenue Code; the provisions of this
20 subparagraph are exempt from the provisions of
21 Section 250;
22 (M) An amount equal to those dividends
23 included in such total which were paid by a
24 corporation which conducts business operations in an
25 Enterprise Zone or zones created under the Illinois
26 Enterprise Zone Act and conducts substantially all
27 of its operations in an Enterprise Zone or Zones;
28 (N) An amount equal to any contribution made
29 to a job training project established pursuant to
30 the Tax Increment Allocation Redevelopment Act;
31 (O) An amount equal to those dividends
32 included in such total that were paid by a
33 corporation that conducts business operations in a
34 federally designated Foreign Trade Zone or Sub-Zone
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1 and that is designated a High Impact Business
2 located in Illinois; provided that dividends
3 eligible for the deduction provided in subparagraph
4 (M) of paragraph (2) of this subsection shall not be
5 eligible for the deduction provided under this
6 subparagraph (O);
7 (P) An amount equal to the amount of the
8 deduction used to compute the federal income tax
9 credit for restoration of substantial amounts held
10 under claim of right for the taxable year pursuant
11 to Section 1341 of the Internal Revenue Code of
12 1986; and
13 (Q) For taxable year 1999 and thereafter, an
14 amount equal to the amount of any (i) distributions,
15 to the extent includible in gross income for federal
16 income tax purposes, made to the taxpayer because of
17 his or her status as a victim of persecution for
18 racial or religious reasons by Nazi Germany or any
19 other Axis regime or as an heir of the victim and
20 (ii) items of income, to the extent includible in
21 gross income for federal income tax purposes,
22 attributable to, derived from or in any way related
23 to assets stolen from, hidden from, or otherwise
24 lost to a victim of persecution for racial or
25 religious reasons by Nazi Germany or any other Axis
26 regime immediately prior to, during, and immediately
27 after World War II, including, but not limited to,
28 interest on the proceeds receivable as insurance
29 under policies issued to a victim of persecution for
30 racial or religious reasons by Nazi Germany or any
31 other Axis regime by European insurance companies
32 immediately prior to and during World War II;
33 provided, however, this subtraction from federal
34 adjusted gross income does not apply to assets
HB2980 Enrolled -27- LRB9107003WHdv
1 acquired with such assets or with the proceeds from
2 the sale of such assets; provided, further, this
3 paragraph shall only apply to a taxpayer who was the
4 first recipient of such assets after their recovery
5 and who is a victim of persecution for racial or
6 religious reasons by Nazi Germany or any other Axis
7 regime or as an heir of the victim. The amount of
8 and the eligibility for any public assistance,
9 benefit, or similar entitlement is not affected by
10 the inclusion of items (i) and (ii) of this
11 paragraph in gross income for federal income tax
12 purposes. This paragraph is exempt from the
13 provisions of Section 250.
14 (3) Limitation. The amount of any modification
15 otherwise required under this subsection shall, under
16 regulations prescribed by the Department, be adjusted by
17 any amounts included therein which were properly paid,
18 credited, or required to be distributed, or permanently
19 set aside for charitable purposes pursuant to Internal
20 Revenue Code Section 642(c) during the taxable year.
21 (d) Partnerships.
22 (1) In general. In the case of a partnership, base
23 income means an amount equal to the taxpayer's taxable
24 income for the taxable year as modified by paragraph (2).
25 (2) Modifications. The taxable income referred to
26 in paragraph (1) shall be modified by adding thereto the
27 sum of the following amounts:
28 (A) An amount equal to all amounts paid or
29 accrued to the taxpayer as interest or dividends
30 during the taxable year to the extent excluded from
31 gross income in the computation of taxable income;
32 (B) An amount equal to the amount of tax
33 imposed by this Act to the extent deducted from
34 gross income for the taxable year;
HB2980 Enrolled -28- LRB9107003WHdv
1 (C) The amount of deductions allowed to the
2 partnership pursuant to Section 707 (c) of the
3 Internal Revenue Code in calculating its taxable
4 income; and
5 (D) An amount equal to the amount of the
6 capital gain deduction allowable under the Internal
7 Revenue Code, to the extent deducted from gross
8 income in the computation of taxable income;
9 and by deducting from the total so obtained the following
10 amounts:
11 (E) The valuation limitation amount;
12 (F) An amount equal to the amount of any tax
13 imposed by this Act which was refunded to the
14 taxpayer and included in such total for the taxable
15 year;
16 (G) An amount equal to all amounts included in
17 taxable income as modified by subparagraphs (A),
18 (B), (C) and (D) which are exempt from taxation by
19 this State either by reason of its statutes or
20 Constitution or by reason of the Constitution,
21 treaties or statutes of the United States; provided
22 that, in the case of any statute of this State that
23 exempts income derived from bonds or other
24 obligations from the tax imposed under this Act, the
25 amount exempted shall be the interest net of bond
26 premium amortization;
27 (H) Any income of the partnership which
28 constitutes personal service income as defined in
29 Section 1348 (b) (1) of the Internal Revenue Code
30 (as in effect December 31, 1981) or a reasonable
31 allowance for compensation paid or accrued for
32 services rendered by partners to the partnership,
33 whichever is greater;
34 (I) An amount equal to all amounts of income
HB2980 Enrolled -29- LRB9107003WHdv
1 distributable to an entity subject to the Personal
2 Property Tax Replacement Income Tax imposed by
3 subsections (c) and (d) of Section 201 of this Act
4 including amounts distributable to organizations
5 exempt from federal income tax by reason of Section
6 501(a) of the Internal Revenue Code;
7 (J) With the exception of any amounts
8 subtracted under subparagraph (G), an amount equal
9 to the sum of all amounts disallowed as deductions
10 by (i) Sections 171(a) (2), and 265(2) of the
11 Internal Revenue Code of 1954, as now or hereafter
12 amended, and all amounts of expenses allocable to
13 interest and disallowed as deductions by Section
14 265(1) of the Internal Revenue Code, as now or
15 hereafter amended; and (ii) for taxable years ending
16 on or after August 13, 1999 the effective date of
17 this amendatory Act of the 91st General Assembly,
18 Sections 171(a)(2), 265, 280C, and 832(b)(5)(B)(i)
19 of the Internal Revenue Code; the provisions of this
20 subparagraph are exempt from the provisions of
21 Section 250;
22 (K) An amount equal to those dividends
23 included in such total which were paid by a
24 corporation which conducts business operations in an
25 Enterprise Zone or zones created under the Illinois
26 Enterprise Zone Act, enacted by the 82nd General
27 Assembly, and which does not conduct such operations
28 other than in an Enterprise Zone or Zones;
29 (L) An amount equal to any contribution made
30 to a job training project established pursuant to
31 the Real Property Tax Increment Allocation
32 Redevelopment Act;
33 (M) An amount equal to those dividends
34 included in such total that were paid by a
HB2980 Enrolled -30- LRB9107003WHdv
1 corporation that conducts business operations in a
2 federally designated Foreign Trade Zone or Sub-Zone
3 and that is designated a High Impact Business
4 located in Illinois; provided that dividends
5 eligible for the deduction provided in subparagraph
6 (K) of paragraph (2) of this subsection shall not be
7 eligible for the deduction provided under this
8 subparagraph (M); and
9 (N) An amount equal to the amount of the
10 deduction used to compute the federal income tax
11 credit for restoration of substantial amounts held
12 under claim of right for the taxable year pursuant
13 to Section 1341 of the Internal Revenue Code of
14 1986.
15 (e) Gross income; adjusted gross income; taxable income.
16 (1) In general. Subject to the provisions of
17 paragraph (2) and subsection (b) (3), for purposes of
18 this Section and Section 803(e), a taxpayer's gross
19 income, adjusted gross income, or taxable income for the
20 taxable year shall mean the amount of gross income,
21 adjusted gross income or taxable income properly
22 reportable for federal income tax purposes for the
23 taxable year under the provisions of the Internal Revenue
24 Code. Taxable income may be less than zero. However, for
25 taxable years ending on or after December 31, 1986, net
26 operating loss carryforwards from taxable years ending
27 prior to December 31, 1986, may not exceed the sum of
28 federal taxable income for the taxable year before net
29 operating loss deduction, plus the excess of addition
30 modifications over subtraction modifications for the
31 taxable year. For taxable years ending prior to December
32 31, 1986, taxable income may never be an amount in excess
33 of the net operating loss for the taxable year as defined
34 in subsections (c) and (d) of Section 172 of the Internal
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1 Revenue Code, provided that when taxable income of a
2 corporation (other than a Subchapter S corporation),
3 trust, or estate is less than zero and addition
4 modifications, other than those provided by subparagraph
5 (E) of paragraph (2) of subsection (b) for corporations
6 or subparagraph (E) of paragraph (2) of subsection (c)
7 for trusts and estates, exceed subtraction modifications,
8 an addition modification must be made under those
9 subparagraphs for any other taxable year to which the
10 taxable income less than zero (net operating loss) is
11 applied under Section 172 of the Internal Revenue Code or
12 under subparagraph (E) of paragraph (2) of this
13 subsection (e) applied in conjunction with Section 172 of
14 the Internal Revenue Code.
15 (2) Special rule. For purposes of paragraph (1) of
16 this subsection, the taxable income properly reportable
17 for federal income tax purposes shall mean:
18 (A) Certain life insurance companies. In the
19 case of a life insurance company subject to the tax
20 imposed by Section 801 of the Internal Revenue Code,
21 life insurance company taxable income, plus the
22 amount of distribution from pre-1984 policyholder
23 surplus accounts as calculated under Section 815a of
24 the Internal Revenue Code;
25 (B) Certain other insurance companies. In the
26 case of mutual insurance companies subject to the
27 tax imposed by Section 831 of the Internal Revenue
28 Code, insurance company taxable income;
29 (C) Regulated investment companies. In the
30 case of a regulated investment company subject to
31 the tax imposed by Section 852 of the Internal
32 Revenue Code, investment company taxable income;
33 (D) Real estate investment trusts. In the
34 case of a real estate investment trust subject to
HB2980 Enrolled -32- LRB9107003WHdv
1 the tax imposed by Section 857 of the Internal
2 Revenue Code, real estate investment trust taxable
3 income;
4 (E) Consolidated corporations. In the case of
5 a corporation which is a member of an affiliated
6 group of corporations filing a consolidated income
7 tax return for the taxable year for federal income
8 tax purposes, taxable income determined as if such
9 corporation had filed a separate return for federal
10 income tax purposes for the taxable year and each
11 preceding taxable year for which it was a member of
12 an affiliated group. For purposes of this
13 subparagraph, the taxpayer's separate taxable income
14 shall be determined as if the election provided by
15 Section 243(b) (2) of the Internal Revenue Code had
16 been in effect for all such years;
17 (F) Cooperatives. In the case of a
18 cooperative corporation or association, the taxable
19 income of such organization determined in accordance
20 with the provisions of Section 1381 through 1388 of
21 the Internal Revenue Code;
22 (G) Subchapter S corporations. In the case
23 of: (i) a Subchapter S corporation for which there
24 is in effect an election for the taxable year under
25 Section 1362 of the Internal Revenue Code, the
26 taxable income of such corporation determined in
27 accordance with Section 1363(b) of the Internal
28 Revenue Code, except that taxable income shall take
29 into account those items which are required by
30 Section 1363(b)(1) of the Internal Revenue Code to
31 be separately stated; and (ii) a Subchapter S
32 corporation for which there is in effect a federal
33 election to opt out of the provisions of the
34 Subchapter S Revision Act of 1982 and have applied
HB2980 Enrolled -33- LRB9107003WHdv
1 instead the prior federal Subchapter S rules as in
2 effect on July 1, 1982, the taxable income of such
3 corporation determined in accordance with the
4 federal Subchapter S rules as in effect on July 1,
5 1982; and
6 (H) Partnerships. In the case of a
7 partnership, taxable income determined in accordance
8 with Section 703 of the Internal Revenue Code,
9 except that taxable income shall take into account
10 those items which are required by Section 703(a)(1)
11 to be separately stated but which would be taken
12 into account by an individual in calculating his
13 taxable income.
14 (f) Valuation limitation amount.
15 (1) In general. The valuation limitation amount
16 referred to in subsections (a) (2) (G), (c) (2) (I) and
17 (d)(2) (E) is an amount equal to:
18 (A) The sum of the pre-August 1, 1969
19 appreciation amounts (to the extent consisting of
20 gain reportable under the provisions of Section 1245
21 or 1250 of the Internal Revenue Code) for all
22 property in respect of which such gain was reported
23 for the taxable year; plus
24 (B) The lesser of (i) the sum of the
25 pre-August 1, 1969 appreciation amounts (to the
26 extent consisting of capital gain) for all property
27 in respect of which such gain was reported for
28 federal income tax purposes for the taxable year, or
29 (ii) the net capital gain for the taxable year,
30 reduced in either case by any amount of such gain
31 included in the amount determined under subsection
32 (a) (2) (F) or (c) (2) (H).
33 (2) Pre-August 1, 1969 appreciation amount.
34 (A) If the fair market value of property
HB2980 Enrolled -34- LRB9107003WHdv
1 referred to in paragraph (1) was readily
2 ascertainable on August 1, 1969, the pre-August 1,
3 1969 appreciation amount for such property is the
4 lesser of (i) the excess of such fair market value
5 over the taxpayer's basis (for determining gain) for
6 such property on that date (determined under the
7 Internal Revenue Code as in effect on that date), or
8 (ii) the total gain realized and reportable for
9 federal income tax purposes in respect of the sale,
10 exchange or other disposition of such property.
11 (B) If the fair market value of property
12 referred to in paragraph (1) was not readily
13 ascertainable on August 1, 1969, the pre-August 1,
14 1969 appreciation amount for such property is that
15 amount which bears the same ratio to the total gain
16 reported in respect of the property for federal
17 income tax purposes for the taxable year, as the
18 number of full calendar months in that part of the
19 taxpayer's holding period for the property ending
20 July 31, 1969 bears to the number of full calendar
21 months in the taxpayer's entire holding period for
22 the property.
23 (C) The Department shall prescribe such
24 regulations as may be necessary to carry out the
25 purposes of this paragraph.
26 (g) Double deductions. Unless specifically provided
27 otherwise, nothing in this Section shall permit the same item
28 to be deducted more than once.
29 (h) Legislative intention. Except as expressly provided
30 by this Section there shall be no modifications or
31 limitations on the amounts of income, gain, loss or deduction
32 taken into account in determining gross income, adjusted
33 gross income or taxable income for federal income tax
HB2980 Enrolled -35- LRB9107003WHdv
1 purposes for the taxable year, or in the amount of such items
2 entering into the computation of base income and net income
3 under this Act for such taxable year, whether in respect of
4 property values as of August 1, 1969 or otherwise.
5 (Source: P.A. 90-491, eff. 1-1-98; 90-717, eff. 8-7-98;
6 90-770, eff. 8-14-98; 91-192, eff. 7-20-99; 91-205, eff.
7 7-20-99; 91-357, eff. 7-29-99; 91-541, eff. 8-13-99; 91-676,
8 eff. 12-23-99; revised 1-5-00.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.
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