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92_SB1543enr
SB1543 Enrolled LRB9211240AGgc
1 AN ACT concerning taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 3. The Illinois Income Tax Act is amended by
5 changing Section 203 as follows:
6 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
7 Sec. 203. Base income defined.
8 (a) Individuals.
9 (1) In general. In the case of an individual, base
10 income means an amount equal to the taxpayer's adjusted
11 gross income for the taxable year as modified by
12 paragraph (2).
13 (2) Modifications. The adjusted gross income
14 referred to in paragraph (1) shall be modified by adding
15 thereto the sum of the following amounts:
16 (A) An amount equal to all amounts paid or
17 accrued to the taxpayer as interest or dividends
18 during the taxable year to the extent excluded from
19 gross income in the computation of adjusted gross
20 income, except stock dividends of qualified public
21 utilities described in Section 305(e) of the
22 Internal Revenue Code;
23 (B) 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 adjusted gross
26 income for the taxable year;
27 (C) An amount equal to the amount received
28 during the taxable year as a recovery or refund of
29 real property taxes paid with respect to the
30 taxpayer's principal residence under the Revenue Act
31 of 1939 and for which a deduction was previously
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1 taken under subparagraph (L) of this paragraph (2)
2 prior to July 1, 1991, the retrospective application
3 date of Article 4 of Public Act 87-17. In the case
4 of multi-unit or multi-use structures and farm
5 dwellings, the taxes on the taxpayer's principal
6 residence shall be that portion of the total taxes
7 for the entire property which is attributable to
8 such principal residence;
9 (D) An amount equal to the amount of the
10 capital gain deduction allowable under the Internal
11 Revenue Code, to the extent deducted from gross
12 income in the computation of adjusted gross income;
13 (D-5) An amount, to the extent not included in
14 adjusted gross income, equal to the amount of money
15 withdrawn by the taxpayer in the taxable year from a
16 medical care savings account and the interest earned
17 on the account in the taxable year of a withdrawal
18 pursuant to subsection (b) of Section 20 of the
19 Medical Care Savings Account Act or subsection (b)
20 of Section 20 of the Medical Care Savings Account
21 Act of 2000; and
22 (D-10) For taxable years ending after December
23 31, 1997, an amount equal to any eligible
24 remediation costs that the individual deducted in
25 computing adjusted gross income and for which the
26 individual claims a credit under subsection (l) of
27 Section 201;
28 (D-15) For taxable years 2001 and thereafter,
29 an amount equal to the bonus depreciation deduction
30 (30% of the adjusted basis of the qualified
31 property) taken on the taxpayer's federal income tax
32 return for the taxable year under subsection (k) of
33 Section 168 of the Internal Revenue Code; and
34 (D-16) If the taxpayer reports a capital gain
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1 or loss on the taxpayer's federal income tax return
2 for the taxable year based on a sale or transfer of
3 property for which the taxpayer was required in any
4 taxable year to make an addition modification under
5 subparagraph (D-15), then an amount equal to the
6 aggregate amount of the deductions taken in all
7 taxable years under subparagraph (Z) with respect to
8 that property;
9 The taxpayer is required to make the addition
10 modification under this subparagraph only once with
11 respect to any one piece of property.
12 and by deducting from the total so obtained the sum of
13 the following amounts:
14 (E) For taxable years ending before December
15 31, 2001, 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. For
28 taxable years ending on or after December 31, 2001,
29 any amount included in such total in respect of any
30 compensation (including but not limited to any
31 compensation paid or accrued to a serviceman while a
32 prisoner of war or missing in action) paid to a
33 resident by reason of being a member of any
34 component of the Armed Forces of the United States
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1 and in respect of any compensation paid or accrued
2 to a resident who as a governmental employee was a
3 prisoner of war or missing in action, and in respect
4 of any compensation paid to a resident in 2001 or
5 thereafter by reason of being a member of the
6 Illinois National Guard. The provisions of this
7 amendatory Act of the 92nd General Assembly are
8 exempt from the provisions of Section 250;
9 (F) An amount equal to all amounts included in
10 such total pursuant to the provisions of Sections
11 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
12 408 of the Internal Revenue Code, or included in
13 such total as distributions under the provisions of
14 any retirement or disability plan for employees of
15 any governmental agency or unit, or retirement
16 payments to retired partners, which payments are
17 excluded in computing net earnings from self
18 employment by Section 1402 of the Internal Revenue
19 Code and regulations adopted pursuant thereto;
20 (G) The valuation limitation amount;
21 (H) An amount equal to the amount of any tax
22 imposed by this Act which was refunded to the
23 taxpayer and included in such total for the taxable
24 year;
25 (I) An amount equal to all amounts included in
26 such total pursuant to the provisions of Section 111
27 of the Internal Revenue Code as a recovery of items
28 previously deducted from adjusted gross income in
29 the computation of taxable income;
30 (J) An amount equal to those dividends
31 included in such total which were paid by a
32 corporation which conducts business operations in an
33 Enterprise Zone or zones created under the Illinois
34 Enterprise Zone Act, and conducts substantially all
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1 of its operations in an Enterprise Zone or zones;
2 (K) An amount equal to those dividends
3 included in such total that were paid by a
4 corporation that conducts business operations in a
5 federally designated Foreign Trade Zone or Sub-Zone
6 and that is designated a High Impact Business
7 located in Illinois; provided that dividends
8 eligible for the deduction provided in subparagraph
9 (J) of paragraph (2) of this subsection shall not be
10 eligible for the deduction provided under this
11 subparagraph (K);
12 (L) For taxable years ending after December
13 31, 1983, an amount equal to all social security
14 benefits and railroad retirement benefits included
15 in such total pursuant to Sections 72(r) and 86 of
16 the Internal Revenue Code;
17 (M) With the exception of any amounts
18 subtracted under subparagraph (N), an amount equal
19 to the sum of all amounts disallowed as deductions
20 by (i) Sections 171(a) (2), and 265(2) of the
21 Internal Revenue Code of 1954, as now or hereafter
22 amended, and all amounts of expenses allocable to
23 interest and disallowed as deductions by Section
24 265(1) of the Internal Revenue Code of 1954, as now
25 or hereafter amended; and (ii) for taxable years
26 ending on or after August 13, 1999, Sections
27 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
28 Internal Revenue Code; the provisions of this
29 subparagraph are exempt from the provisions of
30 Section 250;
31 (N) An amount equal to all amounts included in
32 such total which are exempt from taxation by this
33 State either by reason of its statutes or
34 Constitution or by reason of the Constitution,
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1 treaties or statutes of the United States; provided
2 that, in the case of any statute of this State that
3 exempts income derived from bonds or other
4 obligations from the tax imposed under this Act, the
5 amount exempted shall be the interest net of bond
6 premium amortization;
7 (O) An amount equal to any contribution made
8 to a job training project established pursuant to
9 the Tax Increment Allocation Redevelopment Act;
10 (P) An amount equal to the amount of the
11 deduction used to compute the federal income tax
12 credit for restoration of substantial amounts held
13 under claim of right for the taxable year pursuant
14 to Section 1341 of the Internal Revenue Code of
15 1986;
16 (Q) An amount equal to any amounts included in
17 such total, received by the taxpayer as an
18 acceleration in the payment of life, endowment or
19 annuity benefits in advance of the time they would
20 otherwise be payable as an indemnity for a terminal
21 illness;
22 (R) An amount equal to the amount of any
23 federal or State bonus paid to veterans of the
24 Persian Gulf War;
25 (S) An amount, to the extent included in
26 adjusted gross income, equal to the amount of a
27 contribution made in the taxable year on behalf of
28 the taxpayer to a medical care savings account
29 established under the Medical Care Savings Account
30 Act or the Medical Care Savings Account Act of 2000
31 to the extent the contribution is accepted by the
32 account administrator as provided in that Act;
33 (T) An amount, to the extent included in
34 adjusted gross income, equal to the amount of
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1 interest earned in the taxable year on a medical
2 care savings account established under the Medical
3 Care Savings Account Act or the Medical Care Savings
4 Account Act of 2000 on behalf of the taxpayer, other
5 than interest added pursuant to item (D-5) of this
6 paragraph (2);
7 (U) For one taxable year beginning on or after
8 January 1, 1994, an amount equal to the total amount
9 of tax imposed and paid under subsections (a) and
10 (b) of Section 201 of this Act on grant amounts
11 received by the taxpayer under the Nursing Home
12 Grant Assistance Act during the taxpayer's taxable
13 years 1992 and 1993;
14 (V) Beginning with tax years ending on or
15 after December 31, 1995 and ending with tax years
16 ending on or before December 31, 2004, an amount
17 equal to the amount paid by a taxpayer who is a
18 self-employed taxpayer, a partner of a partnership,
19 or a shareholder in a Subchapter S corporation for
20 health insurance or long-term care insurance for
21 that taxpayer or that taxpayer's spouse or
22 dependents, to the extent that the amount paid for
23 that health insurance or long-term care insurance
24 may be deducted under Section 213 of the Internal
25 Revenue Code of 1986, has not been deducted on the
26 federal income tax return of the taxpayer, and does
27 not exceed the taxable income attributable to that
28 taxpayer's income, self-employment income, or
29 Subchapter S corporation income; except that no
30 deduction shall be allowed under this item (V) if
31 the taxpayer is eligible to participate in any
32 health insurance or long-term care insurance plan of
33 an employer of the taxpayer or the taxpayer's
34 spouse. The amount of the health insurance and
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1 long-term care insurance subtracted under this item
2 (V) shall be determined by multiplying total health
3 insurance and long-term care insurance premiums paid
4 by the taxpayer times a number that represents the
5 fractional percentage of eligible medical expenses
6 under Section 213 of the Internal Revenue Code of
7 1986 not actually deducted on the taxpayer's federal
8 income tax return;
9 (W) For taxable years beginning on or after
10 January 1, 1998, all amounts included in the
11 taxpayer's federal gross income in the taxable year
12 from amounts converted from a regular IRA to a Roth
13 IRA. This paragraph is exempt from the provisions of
14 Section 250;
15 (X) For taxable year 1999 and thereafter, an
16 amount equal to the amount of any (i) distributions,
17 to the extent includible in gross income for federal
18 income tax purposes, made to the taxpayer because of
19 his or her status as a victim of persecution for
20 racial or religious reasons by Nazi Germany or any
21 other Axis regime or as an heir of the victim and
22 (ii) items of income, to the extent includible in
23 gross income for federal income tax purposes,
24 attributable to, derived from or in any way related
25 to assets stolen from, hidden from, or otherwise
26 lost to a victim of persecution for racial or
27 religious reasons by Nazi Germany or any other Axis
28 regime immediately prior to, during, and immediately
29 after World War II, including, but not limited to,
30 interest on the proceeds receivable as insurance
31 under policies issued to a victim of persecution for
32 racial or religious reasons by Nazi Germany or any
33 other Axis regime by European insurance companies
34 immediately prior to and during World War II;
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1 provided, however, this subtraction from federal
2 adjusted gross income does not apply to assets
3 acquired with such assets or with the proceeds from
4 the sale of such assets; provided, further, this
5 paragraph shall only apply to a taxpayer who was the
6 first recipient of such assets after their recovery
7 and who is a victim of persecution for racial or
8 religious reasons by Nazi Germany or any other Axis
9 regime or as an heir of the victim. The amount of
10 and the eligibility for any public assistance,
11 benefit, or similar entitlement is not affected by
12 the inclusion of items (i) and (ii) of this
13 paragraph in gross income for federal income tax
14 purposes. This paragraph is exempt from the
15 provisions of Section 250; and
16 (Y) For taxable years beginning on or after
17 January 1, 2002, moneys contributed in the taxable
18 year to a College Savings Pool account under Section
19 16.5 of the State Treasurer Act. This subparagraph
20 (Y) is exempt from the provisions of Section 250;
21 (Z) For taxable years 2001 and thereafter, for
22 the taxable year in which the bonus depreciation
23 deduction (30% of the adjusted basis of the
24 qualified property) is taken on the taxpayer's
25 federal income tax return under subsection (k) of
26 Section 168 of the Internal Revenue Code and for
27 each applicable taxable year thereafter, an amount
28 equal to "x", where:
29 (1) "y" equals the amount of the
30 depreciation deduction taken for the taxable
31 year on the taxpayer's federal income tax
32 return on property for which the bonus
33 depreciation deduction (30% of the adjusted
34 basis of the qualified property) was taken in
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1 any year under subsection (k) of Section 168 of
2 the Internal Revenue Code, but not including
3 the bonus depreciation deduction; and
4 (2) "x" equals "y" multiplied by 30 and
5 then divided by 70 (or "y" multiplied by
6 0.429).
7 The aggregate amount deducted under this
8 subparagraph in all taxable years for any one piece
9 of property may not exceed the amount of the bonus
10 depreciation deduction (30% of the adjusted basis of
11 the qualified property) taken on that property on
12 the taxpayer's federal income tax return under
13 subsection (k) of Section 168 of the Internal
14 Revenue Code; and
15 (AA) If the taxpayer reports a capital gain or
16 loss on the taxpayer's federal income tax return for
17 the taxable year based on a sale or transfer of
18 property for which the taxpayer was required in any
19 taxable year to make an addition modification under
20 subparagraph (D-15), then an amount equal to that
21 addition modification.
22 The taxpayer is allowed to take the deduction
23 under this subparagraph only once with respect to
24 any one piece of property.
25 (b) Corporations.
26 (1) In general. In the case of a corporation, base
27 income means an amount equal to the taxpayer's taxable
28 income for the taxable year as modified by paragraph (2).
29 (2) Modifications. The taxable income referred to
30 in paragraph (1) shall be modified by adding thereto the
31 sum of the following amounts:
32 (A) An amount equal to all amounts paid or
33 accrued to the taxpayer as interest and all
34 distributions received from regulated investment
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1 companies during the taxable year to the extent
2 excluded from gross income in the computation of
3 taxable income;
4 (B) An amount equal to the amount of tax
5 imposed by this Act to the extent deducted from
6 gross income in the computation of taxable income
7 for the taxable year;
8 (C) In the case of a regulated investment
9 company, an amount equal to the excess of (i) the
10 net long-term capital gain for the taxable year,
11 over (ii) the amount of the capital gain dividends
12 designated as such in accordance with Section
13 852(b)(3)(C) of the Internal Revenue Code and any
14 amount designated under Section 852(b)(3)(D) of the
15 Internal Revenue Code, attributable to the taxable
16 year (this amendatory Act of 1995 (Public Act 89-89)
17 is declarative of existing law and is not a new
18 enactment);
19 (D) The amount of any net operating loss
20 deduction taken in arriving at taxable income, other
21 than a net operating loss carried forward from a
22 taxable year ending prior to December 31, 1986;
23 (E) For taxable years in which a net operating
24 loss carryback or carryforward from a taxable year
25 ending prior to December 31, 1986 is an element of
26 taxable income under paragraph (1) of subsection (e)
27 or subparagraph (E) of paragraph (2) of subsection
28 (e), the amount by which addition modifications
29 other than those provided by this subparagraph (E)
30 exceeded subtraction modifications in such earlier
31 taxable year, with the following limitations applied
32 in the order that they are listed:
33 (i) the addition modification relating to
34 the net operating loss carried back or forward
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1 to the taxable year from any taxable year
2 ending prior to December 31, 1986 shall be
3 reduced by the amount of addition modification
4 under this subparagraph (E) which related to
5 that net operating loss and which was taken
6 into account in calculating the base income of
7 an earlier taxable year, and
8 (ii) the addition modification relating
9 to the net operating loss carried back or
10 forward to the taxable year from any taxable
11 year ending prior to December 31, 1986 shall
12 not exceed the amount of such carryback or
13 carryforward;
14 For taxable years in which there is a net
15 operating loss carryback or carryforward from more
16 than one other taxable year ending prior to December
17 31, 1986, the addition modification provided in this
18 subparagraph (E) shall be the sum of the amounts
19 computed independently under the preceding
20 provisions of this subparagraph (E) for each such
21 taxable year; and
22 (E-5) For taxable years ending after December
23 31, 1997, an amount equal to any eligible
24 remediation costs that the corporation deducted in
25 computing adjusted gross income and for which the
26 corporation claims a credit under subsection (l) of
27 Section 201;
28 (E-10) For taxable years 2001 and thereafter,
29 an amount equal to the bonus depreciation deduction
30 (30% of the adjusted basis of the qualified
31 property) taken on the taxpayer's federal income tax
32 return for the taxable year under subsection (k) of
33 Section 168 of the Internal Revenue Code; and
34 (E-11) If the taxpayer reports a capital gain
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1 or loss on the taxpayer's federal income tax return
2 for the taxable year based on a sale or transfer of
3 property for which the taxpayer was required in any
4 taxable year to make an addition modification under
5 subparagraph (E-10), then an amount equal to the
6 aggregate amount of the deductions taken in all
7 taxable years under subparagraph (T) with respect to
8 that property;
9 The taxpayer is required to make the addition
10 modification under this subparagraph only once with
11 respect to any one piece of property;
12 and by deducting from the total so obtained the sum of
13 the following amounts:
14 (F) An amount equal to the amount of any tax
15 imposed by this Act which was refunded to the
16 taxpayer and included in such total for the taxable
17 year;
18 (G) An amount equal to any amount included in
19 such total under Section 78 of the Internal Revenue
20 Code;
21 (H) In the case of a regulated investment
22 company, an amount equal to the amount of exempt
23 interest dividends as defined in subsection (b) (5)
24 of Section 852 of the Internal Revenue Code, paid to
25 shareholders for the taxable year;
26 (I) With the exception of any amounts
27 subtracted under subparagraph (J), an amount equal
28 to the sum of all amounts disallowed as deductions
29 by (i) Sections 171(a) (2), and 265(a)(2) and
30 amounts disallowed as interest expense by Section
31 291(a)(3) of the Internal Revenue Code, as now or
32 hereafter amended, and all amounts of expenses
33 allocable to interest and disallowed as deductions
34 by Section 265(a)(1) of the Internal Revenue Code,
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1 as now or hereafter amended; and (ii) for taxable
2 years ending on or after August 13, 1999, Sections
3 171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
4 of the Internal Revenue Code; the provisions of this
5 subparagraph are exempt from the provisions of
6 Section 250;
7 (J) An amount equal to all amounts included in
8 such total which are exempt from taxation by this
9 State either by reason of its statutes or
10 Constitution or by reason of the Constitution,
11 treaties or statutes of the United States; provided
12 that, in the case of any statute of this State that
13 exempts income derived from bonds or other
14 obligations from the tax imposed under this Act, the
15 amount exempted shall be the interest net of bond
16 premium amortization;
17 (K) An amount equal to those dividends
18 included in such total which were paid by a
19 corporation which conducts business operations in an
20 Enterprise Zone or zones created under the Illinois
21 Enterprise Zone Act and conducts substantially all
22 of its operations in an Enterprise Zone or zones;
23 (L) An amount equal to those dividends
24 included in such total that were paid by a
25 corporation that conducts business operations in a
26 federally designated Foreign Trade Zone or Sub-Zone
27 and that is designated a High Impact Business
28 located in Illinois; provided that dividends
29 eligible for the deduction provided in subparagraph
30 (K) of paragraph 2 of this subsection shall not be
31 eligible for the deduction provided under this
32 subparagraph (L);
33 (M) For any taxpayer that is a financial
34 organization within the meaning of Section 304(c) of
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1 this Act, an amount included in such total as
2 interest income from a loan or loans made by such
3 taxpayer to a borrower, to the extent that such a
4 loan is secured by property which is eligible for
5 the Enterprise Zone Investment Credit. To determine
6 the portion of a loan or loans that is secured by
7 property eligible for a Section 201(f) investment
8 credit to the borrower, the entire principal amount
9 of the loan or loans between the taxpayer and the
10 borrower should be divided into the basis of the
11 Section 201(f) investment credit property which
12 secures the loan or loans, using for this purpose
13 the original basis of such property on the date that
14 it was placed in service in the Enterprise Zone.
15 The subtraction modification available to taxpayer
16 in any year under this subsection shall be that
17 portion of the total interest paid by the borrower
18 with respect to such loan attributable to the
19 eligible property as calculated under the previous
20 sentence;
21 (M-1) For any taxpayer that is a financial
22 organization within the meaning of Section 304(c) of
23 this Act, an amount included in such total as
24 interest income from a loan or loans made by such
25 taxpayer to a borrower, to the extent that such a
26 loan is secured by property which is eligible for
27 the High Impact Business Investment Credit. To
28 determine the portion of a loan or loans that is
29 secured by property eligible for a Section 201(h)
30 investment credit to the borrower, the entire
31 principal amount of the loan or loans between the
32 taxpayer and the borrower should be divided into the
33 basis of the Section 201(h) investment credit
34 property which secures the loan or loans, using for
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1 this purpose the original basis of such property on
2 the date that it was placed in service in a
3 federally designated Foreign Trade Zone or Sub-Zone
4 located in Illinois. No taxpayer that is eligible
5 for the deduction provided in subparagraph (M) of
6 paragraph (2) of this subsection shall be eligible
7 for the deduction provided under this subparagraph
8 (M-1). The subtraction modification available to
9 taxpayers in any year under this subsection shall be
10 that portion of the total interest paid by the
11 borrower with respect to such loan attributable to
12 the eligible property as calculated under the
13 previous sentence;
14 (N) Two times any contribution made during the
15 taxable year to a designated zone organization to
16 the extent that the contribution (i) qualifies as a
17 charitable contribution under subsection (c) of
18 Section 170 of the Internal Revenue Code and (ii)
19 must, by its terms, be used for a project approved
20 by the Department of Commerce and Community Affairs
21 under Section 11 of the Illinois Enterprise Zone
22 Act;
23 (O) An amount equal to: (i) 85% for taxable
24 years ending on or before December 31, 1992, or, a
25 percentage equal to the percentage allowable under
26 Section 243(a)(1) of the Internal Revenue Code of
27 1986 for taxable years ending after December 31,
28 1992, of the amount by which dividends included in
29 taxable income and received from a corporation that
30 is not created or organized under the laws of the
31 United States or any state or political subdivision
32 thereof, including, for taxable years ending on or
33 after December 31, 1988, dividends received or
34 deemed received or paid or deemed paid under
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1 Sections 951 through 964 of the Internal Revenue
2 Code, exceed the amount of the modification provided
3 under subparagraph (G) of paragraph (2) of this
4 subsection (b) which is related to such dividends;
5 plus (ii) 100% of the amount by which dividends,
6 included in taxable income and received, including,
7 for taxable years ending on or after December 31,
8 1988, dividends received or deemed received or paid
9 or deemed paid under Sections 951 through 964 of the
10 Internal Revenue Code, from any such corporation
11 specified in clause (i) that would but for the
12 provisions of Section 1504 (b) (3) of the Internal
13 Revenue Code be treated as a member of the
14 affiliated group which includes the dividend
15 recipient, exceed the amount of the modification
16 provided under subparagraph (G) of paragraph (2) of
17 this subsection (b) which is related to such
18 dividends;
19 (P) An amount equal to any contribution made
20 to a job training project established pursuant to
21 the Tax Increment Allocation Redevelopment Act;
22 (Q) An amount equal to the amount of the
23 deduction used to compute the federal income tax
24 credit for restoration of substantial amounts held
25 under claim of right for the taxable year pursuant
26 to Section 1341 of the Internal Revenue Code of
27 1986;
28 (R) In the case of an attorney-in-fact with
29 respect to whom an interinsurer or a reciprocal
30 insurer has made the election under Section 835 of
31 the Internal Revenue Code, 26 U.S.C. 835, an amount
32 equal to the excess, if any, of the amounts paid or
33 incurred by that interinsurer or reciprocal insurer
34 in the taxable year to the attorney-in-fact over the
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1 deduction allowed to that interinsurer or reciprocal
2 insurer with respect to the attorney-in-fact under
3 Section 835(b) of the Internal Revenue Code for the
4 taxable year; and
5 (S) For taxable years ending on or after
6 December 31, 1997, in the case of a Subchapter S
7 corporation, an amount equal to all amounts of
8 income allocable to a shareholder subject to the
9 Personal Property Tax Replacement Income Tax imposed
10 by subsections (c) and (d) of Section 201 of this
11 Act, including amounts allocable to organizations
12 exempt from federal income tax by reason of Section
13 501(a) of the Internal Revenue Code. This
14 subparagraph (S) is exempt from the provisions of
15 Section 250;
16 (T) For taxable years 2001 and thereafter, for
17 the taxable year in which the bonus depreciation
18 deduction (30% of the adjusted basis of the
19 qualified property) is taken on the taxpayer's
20 federal income tax return under subsection (k) of
21 Section 168 of the Internal Revenue Code and for
22 each applicable taxable year thereafter, an amount
23 equal to "x", where:
24 (1) "y" equals the amount of the
25 depreciation deduction taken for the taxable
26 year on the taxpayer's federal income tax
27 return on property for which the bonus
28 depreciation deduction (30% of the adjusted
29 basis of the qualified property) was taken in
30 any year under subsection (k) of Section 168 of
31 the Internal Revenue Code, but not including
32 the bonus depreciation deduction; and
33 (2) "x" equals "y" multiplied by 30 and
34 then divided by 70 (or "y" multiplied by
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1 0.429).
2 The aggregate amount deducted under this
3 subparagraph in all taxable years for any one piece
4 of property may not exceed the amount of the bonus
5 depreciation deduction (30% of the adjusted basis of
6 the qualified property) taken on that property on
7 the taxpayer's federal income tax return under
8 subsection (k) of Section 168 of the Internal
9 Revenue Code; and
10 (U) If the taxpayer reports a capital gain or
11 loss on the taxpayer's federal income tax return for
12 the taxable year based on a sale or transfer of
13 property for which the taxpayer was required in any
14 taxable year to make an addition modification under
15 subparagraph (E-10), then an amount equal to that
16 addition modification.
17 The taxpayer is allowed to take the deduction
18 under this subparagraph only once with respect to
19 any one piece of property.
20 (3) Special rule. For purposes of paragraph (2)
21 (A), "gross income" in the case of a life insurance
22 company, for tax years ending on and after December 31,
23 1994, shall mean the gross investment income for the
24 taxable year.
25 (c) Trusts and estates.
26 (1) In general. In the case of a trust or estate,
27 base income means an amount equal to the taxpayer's
28 taxable income for the taxable year as modified by
29 paragraph (2).
30 (2) Modifications. Subject to the provisions of
31 paragraph (3), the taxable income referred to in
32 paragraph (1) shall be modified by adding thereto the sum
33 of the following amounts:
34 (A) An amount equal to all amounts paid or
SB1543 Enrolled -20- LRB9211240AGgc
1 accrued to the taxpayer as interest or dividends
2 during the taxable year to the extent excluded from
3 gross income in the computation of taxable income;
4 (B) In the case of (i) an estate, $600; (ii) a
5 trust which, under its governing instrument, is
6 required to distribute all of its income currently,
7 $300; and (iii) any other trust, $100, but in each
8 such case, only to the extent such amount was
9 deducted in the computation of taxable income;
10 (C) An amount equal to the amount of tax
11 imposed by this Act to the extent deducted from
12 gross income in the computation of taxable income
13 for the taxable year;
14 (D) The amount of any net operating loss
15 deduction taken in arriving at taxable income, other
16 than a net operating loss carried forward from a
17 taxable year ending prior to December 31, 1986;
18 (E) For taxable years in which a net operating
19 loss carryback or carryforward from a taxable year
20 ending prior to December 31, 1986 is an element of
21 taxable income under paragraph (1) of subsection (e)
22 or subparagraph (E) of paragraph (2) of subsection
23 (e), the amount by which addition modifications
24 other than those provided by this subparagraph (E)
25 exceeded subtraction modifications in such taxable
26 year, with the following limitations applied in the
27 order that they are listed:
28 (i) the addition modification relating to
29 the net operating loss carried back or forward
30 to the taxable year from any taxable year
31 ending prior to December 31, 1986 shall be
32 reduced by the amount of addition modification
33 under this subparagraph (E) which related to
34 that net operating loss and which was taken
SB1543 Enrolled -21- LRB9211240AGgc
1 into account in calculating the base income of
2 an earlier taxable year, and
3 (ii) the addition modification relating
4 to the net operating loss carried back or
5 forward to the taxable year from any taxable
6 year ending prior to December 31, 1986 shall
7 not exceed the amount of such carryback or
8 carryforward;
9 For taxable years in which there is a net
10 operating loss carryback or carryforward from more
11 than one other taxable year ending prior to December
12 31, 1986, the addition modification provided in this
13 subparagraph (E) shall be the sum of the amounts
14 computed independently under the preceding
15 provisions of this subparagraph (E) for each such
16 taxable year;
17 (F) For taxable years ending on or after
18 January 1, 1989, an amount equal to the tax deducted
19 pursuant to Section 164 of the Internal Revenue Code
20 if the trust or estate is claiming the same tax for
21 purposes of the Illinois foreign tax credit under
22 Section 601 of this Act;
23 (G) An amount equal to the amount of the
24 capital gain deduction allowable under the Internal
25 Revenue Code, to the extent deducted from gross
26 income in the computation of taxable income; and
27 (G-5) For taxable years ending after December
28 31, 1997, an amount equal to any eligible
29 remediation costs that the trust or estate deducted
30 in computing adjusted gross income and for which the
31 trust or estate claims a credit under subsection (l)
32 of Section 201;
33 (G-10) For taxable years 2001 and thereafter,
34 an amount equal to the bonus depreciation deduction
SB1543 Enrolled -22- LRB9211240AGgc
1 (30% of the adjusted basis of the qualified
2 property) taken on the taxpayer's federal income tax
3 return for the taxable year under subsection (k) of
4 Section 168 of the Internal Revenue Code; and
5 (G-11) If the taxpayer reports a capital gain
6 or loss on the taxpayer's federal income tax return
7 for the taxable year based on a sale or transfer of
8 property for which the taxpayer was required in any
9 taxable year to make an addition modification under
10 subparagraph (G-10), then an amount equal to the
11 aggregate amount of the deductions taken in all
12 taxable years under subparagraph (R) with respect to
13 that property;
14 The taxpayer is required to make the addition
15 modification under this subparagraph only once with
16 respect to any one piece of property;
17 and by deducting from the total so obtained the sum of
18 the following amounts:
19 (H) An amount equal to all amounts included in
20 such total pursuant to the provisions of Sections
21 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
22 408 of the Internal Revenue Code or included in such
23 total as distributions under the provisions of any
24 retirement or disability plan for employees of any
25 governmental agency or unit, or retirement payments
26 to retired partners, which payments are excluded in
27 computing net earnings from self employment by
28 Section 1402 of the Internal Revenue Code and
29 regulations adopted pursuant thereto;
30 (I) The valuation limitation amount;
31 (J) An amount equal to the amount of any tax
32 imposed by this Act which was refunded to the
33 taxpayer and included in such total for the taxable
34 year;
SB1543 Enrolled -23- LRB9211240AGgc
1 (K) An amount equal to all amounts included in
2 taxable income as modified by subparagraphs (A),
3 (B), (C), (D), (E), (F) and (G) which are exempt
4 from taxation by this State either by reason of its
5 statutes or Constitution or by reason of the
6 Constitution, treaties or statutes of the United
7 States; provided that, in the case of any statute of
8 this State that exempts income derived from bonds or
9 other obligations from the tax imposed under this
10 Act, the amount exempted shall be the interest net
11 of bond premium amortization;
12 (L) With the exception of any amounts
13 subtracted under subparagraph (K), an amount equal
14 to the sum of all amounts disallowed as deductions
15 by (i) Sections 171(a) (2) and 265(a)(2) of the
16 Internal Revenue Code, as now or hereafter amended,
17 and all amounts of expenses allocable to interest
18 and disallowed as deductions by Section 265(1) of
19 the Internal Revenue Code of 1954, as now or
20 hereafter amended; and (ii) for taxable years ending
21 on or after August 13, 1999, Sections 171(a)(2),
22 265, 280C, and 832(b)(5)(B)(i) of the Internal
23 Revenue Code; the provisions of this subparagraph
24 are exempt from the provisions of Section 250;
25 (M) An amount equal to those dividends
26 included in such total which were paid by a
27 corporation which conducts business operations in an
28 Enterprise Zone or zones created under the Illinois
29 Enterprise Zone Act and conducts substantially all
30 of its operations in an Enterprise Zone or Zones;
31 (N) An amount equal to any contribution made
32 to a job training project established pursuant to
33 the Tax Increment Allocation Redevelopment Act;
34 (O) An amount equal to those dividends
SB1543 Enrolled -24- LRB9211240AGgc
1 included in such total that were paid by a
2 corporation that conducts business operations in a
3 federally designated Foreign Trade Zone or Sub-Zone
4 and that is designated a High Impact Business
5 located in Illinois; provided that dividends
6 eligible for the deduction provided in subparagraph
7 (M) of paragraph (2) of this subsection shall not be
8 eligible for the deduction provided under this
9 subparagraph (O);
10 (P) An amount equal to the amount of the
11 deduction used to compute the federal income tax
12 credit for restoration of substantial amounts held
13 under claim of right for the taxable year pursuant
14 to Section 1341 of the Internal Revenue Code of
15 1986; and
16 (Q) For taxable year 1999 and thereafter, an
17 amount equal to the amount of any (i) distributions,
18 to the extent includible in gross income for federal
19 income tax purposes, made to the taxpayer because of
20 his or her status as a victim of persecution for
21 racial or religious reasons by Nazi Germany or any
22 other Axis regime or as an heir of the victim and
23 (ii) items of income, to the extent includible in
24 gross income for federal income tax purposes,
25 attributable to, derived from or in any way related
26 to assets stolen from, hidden from, or otherwise
27 lost to a victim of persecution for racial or
28 religious reasons by Nazi Germany or any other Axis
29 regime immediately prior to, during, and immediately
30 after World War II, including, but not limited to,
31 interest on the proceeds receivable as insurance
32 under policies issued to a victim of persecution for
33 racial or religious reasons by Nazi Germany or any
34 other Axis regime by European insurance companies
SB1543 Enrolled -25- LRB9211240AGgc
1 immediately prior to and during World War II;
2 provided, however, this subtraction from federal
3 adjusted gross income does not apply to assets
4 acquired with such assets or with the proceeds from
5 the sale of such assets; provided, further, this
6 paragraph shall only apply to a taxpayer who was the
7 first recipient of such assets after their recovery
8 and who is a victim of persecution for racial or
9 religious reasons by Nazi Germany or any other Axis
10 regime or as an heir of the victim. The amount of
11 and the eligibility for any public assistance,
12 benefit, or similar entitlement is not affected by
13 the inclusion of items (i) and (ii) of this
14 paragraph in gross income for federal income tax
15 purposes. This paragraph is exempt from the
16 provisions of Section 250;
17 (R) For taxable years 2001 and thereafter, for
18 the taxable year in which the bonus depreciation
19 deduction (30% of the adjusted basis of the
20 qualified property) is taken on the taxpayer's
21 federal income tax return under subsection (k) of
22 Section 168 of the Internal Revenue Code and for
23 each applicable taxable year thereafter, an amount
24 equal to "x", where:
25 (1) "y" equals the amount of the
26 depreciation deduction taken for the taxable
27 year on the taxpayer's federal income tax
28 return on property for which the bonus
29 depreciation deduction (30% of the adjusted
30 basis of the qualified property) was taken in
31 any year under subsection (k) of Section 168 of
32 the Internal Revenue Code, but not including
33 the bonus depreciation deduction; and
34 (2) "x" equals "y" multiplied by 30 and
SB1543 Enrolled -26- LRB9211240AGgc
1 then divided by 70 (or "y" multiplied by
2 0.429).
3 The aggregate amount deducted under this
4 subparagraph in all taxable years for any one piece
5 of property may not exceed the amount of the bonus
6 depreciation deduction (30% of the adjusted basis of
7 the qualified property) taken on that property on
8 the taxpayer's federal income tax return under
9 subsection (k) of Section 168 of the Internal
10 Revenue Code; and
11 (S) If the taxpayer reports a capital gain or
12 loss on the taxpayer's federal income tax return for
13 the taxable year based on a sale or transfer of
14 property for which the taxpayer was required in any
15 taxable year to make an addition modification under
16 subparagraph (G-10), then an amount equal to that
17 addition modification.
18 The taxpayer is allowed to take the deduction
19 under this subparagraph only once with respect to
20 any one piece of property.
21 (3) Limitation. The amount of any modification
22 otherwise required under this subsection shall, under
23 regulations prescribed by the Department, be adjusted by
24 any amounts included therein which were properly paid,
25 credited, or required to be distributed, or permanently
26 set aside for charitable purposes pursuant to Internal
27 Revenue Code Section 642(c) during the taxable year.
28 (d) Partnerships.
29 (1) In general. In the case of a partnership, base
30 income means an amount equal to the taxpayer's taxable
31 income for the taxable year as modified by paragraph (2).
32 (2) Modifications. The taxable income referred to
33 in paragraph (1) shall be modified by adding thereto the
34 sum of the following amounts:
SB1543 Enrolled -27- LRB9211240AGgc
1 (A) An amount equal to all amounts paid or
2 accrued to the taxpayer as interest or dividends
3 during the taxable year to the extent excluded from
4 gross income in the computation of taxable income;
5 (B) An amount equal to the amount of tax
6 imposed by this Act to the extent deducted from
7 gross income for the taxable year;
8 (C) The amount of deductions allowed to the
9 partnership pursuant to Section 707 (c) of the
10 Internal Revenue Code in calculating its taxable
11 income; and
12 (D) An amount equal to the amount of the
13 capital gain deduction allowable under the Internal
14 Revenue Code, to the extent deducted from gross
15 income in the computation of taxable income;
16 (D-5) For taxable years 2001 and thereafter,
17 an amount equal to the bonus depreciation deduction
18 (30% of the adjusted basis of the qualified
19 property) taken on the taxpayer's federal income tax
20 return for the taxable year under subsection (k) of
21 Section 168 of the Internal Revenue Code; and
22 (D-6) If the taxpayer reports a capital gain
23 or loss on the taxpayer's federal income tax return
24 for the taxable year based on a sale or transfer of
25 property for which the taxpayer was required in any
26 taxable year to make an addition modification under
27 subparagraph (D-5), then an amount equal to the
28 aggregate amount of the deductions taken in all
29 taxable years under subparagraph (O) with respect to
30 that property;
31 The taxpayer is required to make the addition
32 modification under this subparagraph only once with
33 respect to any one piece of property;
34 and by deducting from the total so obtained the following
SB1543 Enrolled -28- LRB9211240AGgc
1 amounts:
2 (E) The valuation limitation amount;
3 (F) An amount equal to the amount of any tax
4 imposed by this Act which was refunded to the
5 taxpayer and included in such total for the taxable
6 year;
7 (G) An amount equal to all amounts included in
8 taxable income as modified by subparagraphs (A),
9 (B), (C) and (D) which are exempt from taxation by
10 this State either by reason of its statutes or
11 Constitution or by reason of the Constitution,
12 treaties or statutes of the United States; provided
13 that, in the case of any statute of this State that
14 exempts income derived from bonds or other
15 obligations from the tax imposed under this Act, the
16 amount exempted shall be the interest net of bond
17 premium amortization;
18 (H) Any income of the partnership which
19 constitutes personal service income as defined in
20 Section 1348 (b) (1) of the Internal Revenue Code
21 (as in effect December 31, 1981) or a reasonable
22 allowance for compensation paid or accrued for
23 services rendered by partners to the partnership,
24 whichever is greater;
25 (I) An amount equal to all amounts of income
26 distributable to an entity subject to the Personal
27 Property Tax Replacement Income Tax imposed by
28 subsections (c) and (d) of Section 201 of this Act
29 including amounts distributable to organizations
30 exempt from federal income tax by reason of Section
31 501(a) of the Internal Revenue Code;
32 (J) With the exception of any amounts
33 subtracted under subparagraph (G), an amount equal
34 to the sum of all amounts disallowed as deductions
SB1543 Enrolled -29- LRB9211240AGgc
1 by (i) Sections 171(a) (2), and 265(2) of the
2 Internal Revenue Code of 1954, as now or hereafter
3 amended, and all amounts of expenses allocable to
4 interest and disallowed as deductions by Section
5 265(1) of the Internal Revenue Code, as now or
6 hereafter amended; and (ii) for taxable years ending
7 on or after August 13, 1999, Sections 171(a)(2),
8 265, 280C, and 832(b)(5)(B)(i) of the Internal
9 Revenue Code; the provisions of this subparagraph
10 are exempt from the provisions of Section 250;
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, enacted by the 82nd General
16 Assembly, and which does not conduct such operations
17 other than in an Enterprise Zone or Zones;
18 (L) An amount equal to any contribution made
19 to a job training project established pursuant to
20 the Real Property Tax Increment Allocation
21 Redevelopment Act;
22 (M) An amount equal to those dividends
23 included in such total that were paid by a
24 corporation that conducts business operations in a
25 federally designated Foreign Trade Zone or Sub-Zone
26 and that is designated a High Impact Business
27 located in Illinois; provided that dividends
28 eligible for the deduction provided in subparagraph
29 (K) of paragraph (2) of this subsection shall not be
30 eligible for the deduction provided under this
31 subparagraph (M);
32 (N) An amount equal to the amount of the
33 deduction used to compute the federal income tax
34 credit for restoration of substantial amounts held
SB1543 Enrolled -30- LRB9211240AGgc
1 under claim of right for the taxable year pursuant
2 to Section 1341 of the Internal Revenue Code of
3 1986;
4 (O) For taxable years 2001 and thereafter, for
5 the taxable year in which the bonus depreciation
6 deduction (30% of the adjusted basis of the
7 qualified property) is taken on the taxpayer's
8 federal income tax return under subsection (k) of
9 Section 168 of the Internal Revenue Code and for
10 each applicable taxable year thereafter, an amount
11 equal to "x", where:
12 (1) "y" equals the amount of the
13 depreciation deduction taken for the taxable
14 year on the taxpayer's federal income tax
15 return on property for which the bonus
16 depreciation deduction (30% of the adjusted
17 basis of the qualified property) was taken in
18 any year under subsection (k) of Section 168 of
19 the Internal Revenue Code, but not including
20 the bonus depreciation deduction; and
21 (2) "x" equals "y" multiplied by 30 and
22 then divided by 70 (or "y" multiplied by
23 0.429).
24 The aggregate amount deducted under this
25 subparagraph in all taxable years for any one piece
26 of property may not exceed the amount of the bonus
27 depreciation deduction (30% of the adjusted basis of
28 the qualified property) taken on that property on
29 the taxpayer's federal income tax return under
30 subsection (k) of Section 168 of the Internal
31 Revenue Code; and
32 (P) If the taxpayer reports a capital gain or
33 loss on the taxpayer's federal income tax return for
34 the taxable year based on a sale or transfer of
SB1543 Enrolled -31- LRB9211240AGgc
1 property for which the taxpayer was required in any
2 taxable year to make an addition modification under
3 subparagraph (D-5), then an amount equal to that
4 addition modification.
5 The taxpayer is allowed to take the deduction
6 under this subparagraph only once with respect to
7 any one piece of property.
8 (e) Gross income; adjusted gross income; taxable income.
9 (1) In general. Subject to the provisions of
10 paragraph (2) and subsection (b) (3), for purposes of
11 this Section and Section 803(e), a taxpayer's gross
12 income, adjusted gross income, or taxable income for the
13 taxable year shall mean the amount of gross income,
14 adjusted gross income or taxable income properly
15 reportable for federal income tax purposes for the
16 taxable year under the provisions of the Internal Revenue
17 Code. Taxable income may be less than zero. However, for
18 taxable years ending on or after December 31, 1986, net
19 operating loss carryforwards from taxable years ending
20 prior to December 31, 1986, may not exceed the sum of
21 federal taxable income for the taxable year before net
22 operating loss deduction, plus the excess of addition
23 modifications over subtraction modifications for the
24 taxable year. For taxable years ending prior to December
25 31, 1986, taxable income may never be an amount in excess
26 of the net operating loss for the taxable year as defined
27 in subsections (c) and (d) of Section 172 of the Internal
28 Revenue Code, provided that when taxable income of a
29 corporation (other than a Subchapter S corporation),
30 trust, or estate is less than zero and addition
31 modifications, other than those provided by subparagraph
32 (E) of paragraph (2) of subsection (b) for corporations
33 or subparagraph (E) of paragraph (2) of subsection (c)
34 for trusts and estates, exceed subtraction modifications,
SB1543 Enrolled -32- LRB9211240AGgc
1 an addition modification must be made under those
2 subparagraphs for any other taxable year to which the
3 taxable income less than zero (net operating loss) is
4 applied under Section 172 of the Internal Revenue Code or
5 under subparagraph (E) of paragraph (2) of this
6 subsection (e) applied in conjunction with Section 172 of
7 the Internal Revenue Code.
8 (2) Special rule. For purposes of paragraph (1) of
9 this subsection, the taxable income properly reportable
10 for federal income tax purposes shall mean:
11 (A) Certain life insurance companies. In the
12 case of a life insurance company subject to the tax
13 imposed by Section 801 of the Internal Revenue Code,
14 life insurance company taxable income, plus the
15 amount of distribution from pre-1984 policyholder
16 surplus accounts as calculated under Section 815a of
17 the Internal Revenue Code;
18 (B) Certain other insurance companies. In the
19 case of mutual insurance companies subject to the
20 tax imposed by Section 831 of the Internal Revenue
21 Code, insurance company taxable income;
22 (C) Regulated investment companies. In the
23 case of a regulated investment company subject to
24 the tax imposed by Section 852 of the Internal
25 Revenue Code, investment company taxable income;
26 (D) Real estate investment trusts. In the
27 case of a real estate investment trust subject to
28 the tax imposed by Section 857 of the Internal
29 Revenue Code, real estate investment trust taxable
30 income;
31 (E) Consolidated corporations. In the case of
32 a corporation which is a member of an affiliated
33 group of corporations filing a consolidated income
34 tax return for the taxable year for federal income
SB1543 Enrolled -33- LRB9211240AGgc
1 tax purposes, taxable income determined as if such
2 corporation had filed a separate return for federal
3 income tax purposes for the taxable year and each
4 preceding taxable year for which it was a member of
5 an affiliated group. For purposes of this
6 subparagraph, the taxpayer's separate taxable income
7 shall be determined as if the election provided by
8 Section 243(b) (2) of the Internal Revenue Code had
9 been in effect for all such years;
10 (F) Cooperatives. In the case of a
11 cooperative corporation or association, the taxable
12 income of such organization determined in accordance
13 with the provisions of Section 1381 through 1388 of
14 the Internal Revenue Code;
15 (G) Subchapter S corporations. In the case
16 of: (i) a Subchapter S corporation for which there
17 is in effect an election for the taxable year under
18 Section 1362 of the Internal Revenue Code, the
19 taxable income of such corporation determined in
20 accordance with Section 1363(b) of the Internal
21 Revenue Code, except that taxable income shall take
22 into account those items which are required by
23 Section 1363(b)(1) of the Internal Revenue Code to
24 be separately stated; and (ii) a Subchapter S
25 corporation for which there is in effect a federal
26 election to opt out of the provisions of the
27 Subchapter S Revision Act of 1982 and have applied
28 instead the prior federal Subchapter S rules as in
29 effect on July 1, 1982, the taxable income of such
30 corporation determined in accordance with the
31 federal Subchapter S rules as in effect on July 1,
32 1982; and
33 (H) Partnerships. In the case of a
34 partnership, taxable income determined in accordance
SB1543 Enrolled -34- LRB9211240AGgc
1 with Section 703 of the Internal Revenue Code,
2 except that taxable income shall take into account
3 those items which are required by Section 703(a)(1)
4 to be separately stated but which would be taken
5 into account by an individual in calculating his
6 taxable income.
7 (f) Valuation limitation amount.
8 (1) In general. The valuation limitation amount
9 referred to in subsections (a) (2) (G), (c) (2) (I) and
10 (d)(2) (E) is an amount equal to:
11 (A) The sum of the pre-August 1, 1969
12 appreciation amounts (to the extent consisting of
13 gain reportable under the provisions of Section 1245
14 or 1250 of the Internal Revenue Code) for all
15 property in respect of which such gain was reported
16 for the taxable year; plus
17 (B) The lesser of (i) the sum of the
18 pre-August 1, 1969 appreciation amounts (to the
19 extent consisting of capital gain) for all property
20 in respect of which such gain was reported for
21 federal income tax purposes for the taxable year, or
22 (ii) the net capital gain for the taxable year,
23 reduced in either case by any amount of such gain
24 included in the amount determined under subsection
25 (a) (2) (F) or (c) (2) (H).
26 (2) Pre-August 1, 1969 appreciation amount.
27 (A) If the fair market value of property
28 referred to in paragraph (1) was readily
29 ascertainable on August 1, 1969, the pre-August 1,
30 1969 appreciation amount for such property is the
31 lesser of (i) the excess of such fair market value
32 over the taxpayer's basis (for determining gain) for
33 such property on that date (determined under the
34 Internal Revenue Code as in effect on that date), or
SB1543 Enrolled -35- LRB9211240AGgc
1 (ii) the total gain realized and reportable for
2 federal income tax purposes in respect of the sale,
3 exchange or other disposition of such property.
4 (B) If the fair market value of property
5 referred to in paragraph (1) was not readily
6 ascertainable on August 1, 1969, the pre-August 1,
7 1969 appreciation amount for such property is that
8 amount which bears the same ratio to the total gain
9 reported in respect of the property for federal
10 income tax purposes for the taxable year, as the
11 number of full calendar months in that part of the
12 taxpayer's holding period for the property ending
13 July 31, 1969 bears to the number of full calendar
14 months in the taxpayer's entire holding period for
15 the property.
16 (C) The Department shall prescribe such
17 regulations as may be necessary to carry out the
18 purposes of this paragraph.
19 (g) Double deductions. Unless specifically provided
20 otherwise, nothing in this Section shall permit the same item
21 to be deducted more than once.
22 (h) Legislative intention. Except as expressly provided
23 by this Section there shall be no modifications or
24 limitations on the amounts of income, gain, loss or deduction
25 taken into account in determining gross income, adjusted
26 gross income or taxable income for federal income tax
27 purposes for the taxable year, or in the amount of such items
28 entering into the computation of base income and net income
29 under this Act for such taxable year, whether in respect of
30 property values as of August 1, 1969 or otherwise.
31 (Source: P.A. 91-192, eff. 7-20-99; 91-205, eff. 7-20-99;
32 91-357, eff. 7-29-99; 91-541, eff. 8-13-99; 91-676, eff.
33 12-23-99; 91-845, eff. 6-22-00; 91-913, eff. 1-1-01; 92-16,
SB1543 Enrolled -36- LRB9211240AGgc
1 eff. 6-28-01; 92-244, eff. 8-3-01; 92-439, eff. 8-17-01;
2 revised 9-21-01.)
3 Section 5. The Use Tax Act is amended by changing
4 Section 3-7 as follows:
5 (35 ILCS 105/3-7)
6 Sec. 3-7. Aggregate manufacturing exemption. Through
7 December 31, 2007, the use of aggregate exploration, mining,
8 offhighway hauling, processing, maintenance, and reclamation
9 equipment, including replacement parts and equipment, and
10 including equipment purchased for lease, but excluding motor
11 vehicles required to be registered under the Illinois Vehicle
12 Code, is exempt from the tax imposed by this Act.
13 (Source: P.A. 90-529, eff. 11-14-97.)
14 Section 10. The Service Use Tax Act is amended by
15 changing Section 3-7 as follows:
16 (35 ILCS 110/3-7)
17 Sec. 3-7. Aggregate manufacturing exemption. Through
18 December 31, 2007, the use of aggregate exploration, mining,
19 offhighway hauling, processing, maintenance, and reclamation
20 equipment, including replacement parts and equipment, and
21 including equipment purchased for lease, but excluding motor
22 vehicles required to be registered under the Illinois Vehicle
23 Code, is exempt from the tax imposed by this Act.
24 (Source: P.A. 90-529, eff. 11-14-97.)
25 Section 15. The Service Occupation Tax Act is amended by
26 changing Section 3-7 as follows:
27 (35 ILCS 115/3-7)
28 Sec. 3-7. Aggregate manufacturing exemption. Through
SB1543 Enrolled -37- LRB9211240AGgc
1 December 31, 2007, aggregate exploration, mining, offhighway
2 hauling, processing, maintenance, and reclamation equipment,
3 including replacement parts and equipment, and including
4 equipment purchased for lease, but excluding motor vehicles
5 required to be registered under the Illinois Vehicle Code, is
6 exempt from the tax imposed by this Act.
7 (Source: P.A. 90-529, eff. 11-14-97.)
8 Section 20. The Retailers' Occupation Tax Act is amended
9 by changing Section 2-7 as follows:
10 (35 ILCS 120/2-7)
11 Sec. 2-7. Aggregate manufacturing exemption. Through
12 December 31, 2007, gross receipts from proceeds from the sale
13 of aggregate exploration, mining, offhighway hauling,
14 processing, maintenance, and reclamation equipment, including
15 replacement parts and equipment, and including equipment
16 purchased for lease, but excluding motor vehicles required to
17 be registered under the Illinois Vehicle Code, are exempt
18 from the tax imposed by this Act.
19 (Source: P.A. 90-529, eff. 11-14-97.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.
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