|
|
|
09600SB2494sam001 |
- 2 - |
LRB096 15388 NHT 36734 a |
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|
1 |
| a job or otherwise become functioning, productive members |
2 |
| of our society. |
3 |
| (2) Within Chicago and elsewhere in Illinois there are |
4 |
| many public and nonpublic schools and independent |
5 |
| education services competently and efficiently educating |
6 |
| or contributing to the education of children. Most pupils |
7 |
| in those schools or receiving those services perform at or |
8 |
| above relevant national standards, complete their |
9 |
| secondary education, and matriculate to institutions of |
10 |
| higher education at an extremely high rate. These services |
11 |
| and schools should be accessible to all and should enjoy a |
12 |
| cooperative relationship with public school districts, |
13 |
| schools, and employees of this State. |
14 |
| (3) Custodians of school age children in Chicago and |
15 |
| elsewhere in Illinois are frequently unable to enroll their |
16 |
| children in schools that will provide them a quality |
17 |
| education due to a lack of funds. |
18 |
| (4) Adopting a pilot school choice program for students |
19 |
| enrolled in the lowest performing schools in Chicago, with |
20 |
| the potential to expand elsewhere in Illinois, would enable |
21 |
| parents to select schools or services they believe will |
22 |
| provide a quality education for their children, empower |
23 |
| them to influence the educational policies and procedures |
24 |
| in the schools their children attend, and provide them with |
25 |
| at least a portion of the funds necessary to pay for a |
26 |
| quality education. Such a program would help alleviate the |
|
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|
09600SB2494sam001 |
- 3 - |
LRB096 15388 NHT 36734 a |
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|
1 |
| crisis in the Chicago school system, assist Chicago |
2 |
| children in becoming productive members of society, and |
3 |
| test a new approach to education that could be expanded to |
4 |
| the rest of the State. |
5 |
| (5) The provisions of this Act are in the public |
6 |
| interest, for the public benefit, and serve a secular |
7 |
| public purpose. |
8 |
| Section 10. Definitions. As used in this Act: |
9 |
| "Base year" means the 2010-2011 school year. |
10 |
| "Custodian" means, with respect to a qualifying pupil, a |
11 |
| parent or legal guardian who is a resident of the City of |
12 |
| Chicago. |
13 |
| "Low-performing school" means a school in City of Chicago |
14 |
| School District 299 that is ranked within the lowest 10% of |
15 |
| schools in that district in terms of the percentage of students |
16 |
| meeting or exceeding standards on the Illinois Standards |
17 |
| Achievement Test or on the Prairie State Achievement |
18 |
| Examination. |
19 |
| "Nonpublic school" means any State-recognized, nonpublic |
20 |
| elementary or secondary school in the City of Chicago that |
21 |
| elects to participate in the school choice program established |
22 |
| under this Act and does not discriminate on the basis of race, |
23 |
| color, or national origin under Title VI of the Civil Rights |
24 |
| Act of 1964 and attendance at which satisfies the requirements |
25 |
| of Section 26-1 of the School Code, except that nothing in |
|
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|
09600SB2494sam001 |
- 4 - |
LRB096 15388 NHT 36734 a |
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|
1 |
| Section 26-1 shall be construed to require a child to attend |
2 |
| any particular nonpublic school. |
3 |
| "Qualified education expenses" means costs reasonably |
4 |
| incurred on behalf of a qualifying pupil for the services of a |
5 |
| participating nonpublic school in which the qualifying pupil is |
6 |
| enrolled during the regular school year.
Qualified education |
7 |
| expenses does not include costs incurred for supplies or |
8 |
| extra-curricular activities. |
9 |
| "Qualifying pupil" means an individual who: |
10 |
| (1) is a resident of the City of Chicago; |
11 |
| (2) is enrolled in a low-performing school or would be |
12 |
| enrolled in a low-performing school if not for enrollment |
13 |
| in a nonpublic school; and |
14 |
| (3) during the school year for which a voucher is |
15 |
| sought, is a full-time pupil enrolled in a kindergarten |
16 |
| through 12th grade education program. |
17 |
| "School Choice Voucher" means a written instrument issued |
18 |
| by the State Board of Education directly to the custodian of a |
19 |
| qualifying pupil. The instrument shall be for a sum certain, |
20 |
| which must not exceed the foundation level of support amount |
21 |
| specified in subsection (B) of Section 18-8.05 of the School |
22 |
| Code, to be paid within a designated period of time. The |
23 |
| custodian may present the instrument only to a participating |
24 |
| nonpublic school as payment for qualified education expenses |
25 |
| incurred on behalf of the qualifying pupil. |
|
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|
09600SB2494sam001 |
- 5 - |
LRB096 15388 NHT 36734 a |
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|
1 |
| Section 15. Establishment of program. There is established |
2 |
| the School Choice Program. Under the program, after the base |
3 |
| year, a custodian of a qualifying pupil shall be entitled to a |
4 |
| School Choice Voucher for payment of qualified education |
5 |
| expenses incurred on behalf of the qualifying pupil at any |
6 |
| participating nonpublic school in which the qualifying pupil is |
7 |
| enrolled. A qualifying pupil shall be entitled to enroll at and |
8 |
| attend any participating nonpublic school of his or her choice. |
9 |
| Section 20. Notification of vouchers. The principal of each |
10 |
| low-performing school in City of Chicago School District 299 |
11 |
| shall notify custodians of qualifying pupils that vouchers |
12 |
| under this Act are available for the next school year. |
13 |
| Notification shall occur in January of each school year |
14 |
| beginning with the base year. |
15 |
| Section 25. Request for voucher. A custodian who applies in |
16 |
| accordance with procedures established by the State Board of |
17 |
| Education shall receive a voucher under this Act within the |
18 |
| dollar limits set out in this Act. The procedure shall require |
19 |
| application for the voucher, with documentation as to |
20 |
| eligibility, between March 1 and May 1 prior to the school year |
21 |
| in which the voucher is to be used. |
22 |
| Section 30. Issuance and payment of voucher. A voucher may |
23 |
| only be issued to a custodian who has made proper application |
|
|
|
09600SB2494sam001 |
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LRB096 15388 NHT 36734 a |
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|
1 |
| pursuant to Section 25 of this Act. The custodian shall present |
2 |
| the voucher to a participating nonpublic school of his or her |
3 |
| choice as payment for qualified education expenses. Upon |
4 |
| presentment, the State Board of Education shall honor the |
5 |
| voucher and, as issuer of the instrument, pay the participating |
6 |
| nonpublic school in accordance with procedures established by |
7 |
| the State Board of Education. The procedures shall require all |
8 |
| of the following: |
9 |
| (1) that the applying custodian be notified of the |
10 |
| voucher award by August 1 of the school year in which the |
11 |
| voucher is to be used; |
12 |
| (2) that the voucher instrument be issued to the |
13 |
| custodian no later than September 15 of the school year in |
14 |
| which the voucher is to be used; |
15 |
| (3) that the custodian present the voucher instrument |
16 |
| to the participating school no later than October 1 of the |
17 |
| school year in which the voucher is to be used; |
18 |
| (4) that the participating school present the voucher |
19 |
| instrument, with proof of service to the custodian of the |
20 |
| qualifying pupil, to the State Board of Education no later |
21 |
| than October 31 of the school year in which the voucher is |
22 |
| to be used; |
23 |
| (5) that the State Board of Education shall honor the |
24 |
| voucher instrument and as issuer pay the participating |
25 |
| school no later than December 31 of the school year in |
26 |
| which the voucher is to be used; and |
|
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|
09600SB2494sam001 |
- 7 - |
LRB096 15388 NHT 36734 a |
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|
1 |
| (6) that participating schools must not be required to |
2 |
| accept vouchers as full payment for services but neither |
3 |
| shall they charge voucher pupils tuition or any other |
4 |
| educational expenses at a higher rate than other pupils. |
5 |
| Section 35. Amount of voucher. A School Choice Voucher for |
6 |
| qualified education expenses incurred through participating |
7 |
| schools during any school year after the base year shall be for |
8 |
| the lesser of (i) the foundation level of support amount |
9 |
| specified in subsection (B) of Section 18-8.05 of the School |
10 |
| Code or (ii) the actual qualified education expenses related to |
11 |
| the qualifying pupil's enrollment. |
12 |
| Section 40. Renewal of voucher. School Choice Vouchers |
13 |
| shall be renewable every year through grade 12 so long as the |
14 |
| qualifying pupil and custodian continue to remain eligible |
15 |
| pursuant to Section 10 of this Act. |
16 |
| Section 45. Assessment. All pupils receiving services |
17 |
| obtained through School Choice Vouchers shall be assessed |
18 |
| annually in the same manner as Illinois' public school |
19 |
| students. Participating schools shall be responsible for |
20 |
| administering the assessments and reporting the results to the |
21 |
| State Board of Education. |
22 |
| Section 50. Funding. If the amount needed to fund vouchers |
|
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|
09600SB2494sam001 |
- 8 - |
LRB096 15388 NHT 36734 a |
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|
1 |
| for all qualifying pupils seeking to participate under this Act |
2 |
| exceeds the appropriation for the program in any year, the |
3 |
| State Board of Education shall determine an equitable way to |
4 |
| allocate the appropriated funding among the qualifying pupils |
5 |
| consistent with the stated purpose and policy of this Act, |
6 |
| which may include the consideration of household income of the |
7 |
| pupils. |
8 |
| Section 55. Not base income. The amount of any voucher |
9 |
| redeemed under this Act shall not be considered base income |
10 |
| under subsection (a) of Section 203 of the Illinois Income Tax |
11 |
| Act and shall not be taxable for Illinois income tax purposes. |
12 |
| Section 60. Report and expansion. On or before December 31, |
13 |
| 2014, the State Board of Education shall submit a report to the |
14 |
| General Assembly reviewing the current status of the program |
15 |
| operating under this Act. This report shall include, but not be |
16 |
| limited to, the numbers of qualifying pupils receiving each |
17 |
| School Choice Voucher, the names of the schools from which and |
18 |
| to which pupils transferred, the financial ramifications of the |
19 |
| program, and the results of pupil assessments. In its report, |
20 |
| the State Board of Education shall assess whether the program |
21 |
| has been financially and academically beneficial and shall make |
22 |
| a recommendation on whether the program should be expanded to |
23 |
| other schools in the City of Chicago or to other areas of this |
24 |
| State. |
|
|
|
09600SB2494sam001 |
- 9 - |
LRB096 15388 NHT 36734 a |
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1 |
| Section 65. Penalties. It shall be a Class 3 felony to use |
2 |
| or attempt to use a voucher under this Act for any purpose |
3 |
| other than those permitted by this Act. It shall also be a |
4 |
| Class 3 felony for any person, with intent to defraud, to |
5 |
| knowingly forge, alter, or misrepresent information on a |
6 |
| voucher application or on any documents submitted in |
7 |
| application for a voucher, to deliver any such document knowing |
8 |
| it to have been thus forged, altered, or based on |
9 |
| misrepresentation, or to possess, with intent to issue or |
10 |
| deliver, any such document knowing it to have been thus forged, |
11 |
| altered, or based on misrepresentation. |
12 |
| Section 70. Rules. The State Board of Education shall adopt |
13 |
| rules to implement this Act. The creation of the School Choice |
14 |
| Program does not expand the regulatory authority of the State, |
15 |
| its officers, or any school district to impose any additional |
16 |
| regulation of nonpublic schools beyond those reasonably |
17 |
| necessary to enforce the requirements of the program.
|
18 |
| Section 900. The Illinois Income Tax Act is amended by |
19 |
| changing Section 203 as follows: |
20 |
| (35 ILCS 5/203) (from Ch. 120, par. 2-203) |
21 |
| Sec. 203. Base income defined. |
22 |
| (a) Individuals. |
|
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|
09600SB2494sam001 |
- 10 - |
LRB096 15388 NHT 36734 a |
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|
1 |
| (1) In general. In the case of an individual, base |
2 |
| income means an
amount equal to the taxpayer's adjusted |
3 |
| gross income for the taxable
year as modified by paragraph |
4 |
| (2). |
5 |
| (2) Modifications. The adjusted gross income referred |
6 |
| to in
paragraph (1) shall be modified by adding thereto the |
7 |
| sum of the
following amounts: |
8 |
| (A) An amount equal to all amounts paid or accrued |
9 |
| to the taxpayer
as interest or dividends during the |
10 |
| taxable year to the extent excluded
from gross income |
11 |
| in the computation of adjusted gross income, except |
12 |
| stock
dividends of qualified public utilities |
13 |
| described in Section 305(e) of the
Internal Revenue |
14 |
| Code; |
15 |
| (B) An amount equal to the amount of tax imposed by |
16 |
| this Act to the
extent deducted from gross income in |
17 |
| the computation of adjusted gross
income for the |
18 |
| taxable year; |
19 |
| (C) An amount equal to the amount received during |
20 |
| the taxable year
as a recovery or refund of real |
21 |
| property taxes paid with respect to the
taxpayer's |
22 |
| principal residence under the Revenue Act of
1939 and |
23 |
| for which a deduction was previously taken under |
24 |
| subparagraph (L) of
this paragraph (2) prior to July 1, |
25 |
| 1991, the retrospective application date of
Article 4 |
26 |
| of Public Act 87-17. In the case of multi-unit or |
|
|
|
09600SB2494sam001 |
- 11 - |
LRB096 15388 NHT 36734 a |
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|
1 |
| multi-use
structures and farm dwellings, the taxes on |
2 |
| the taxpayer's principal residence
shall be that |
3 |
| portion of the total taxes for the entire property |
4 |
| which is
attributable to such principal residence; |
5 |
| (D) An amount equal to the amount of the capital |
6 |
| gain deduction
allowable under the Internal Revenue |
7 |
| Code, to the extent deducted from gross
income in the |
8 |
| computation of adjusted gross income; |
9 |
| (D-5) An amount, to the extent not included in |
10 |
| adjusted gross income,
equal to the amount of money |
11 |
| withdrawn by the taxpayer in the taxable year from
a |
12 |
| medical care savings account and the interest earned on |
13 |
| the account in the
taxable year of a withdrawal |
14 |
| pursuant to subsection (b) of Section 20 of the
Medical |
15 |
| Care Savings Account Act or subsection (b) of Section |
16 |
| 20 of the
Medical Care Savings Account Act of 2000; |
17 |
| (D-10) For taxable years ending after December 31, |
18 |
| 1997, an
amount equal to any eligible remediation costs |
19 |
| that the individual
deducted in computing adjusted |
20 |
| gross income and for which the
individual claims a |
21 |
| credit under subsection (l) of Section 201; |
22 |
| (D-15) For taxable years 2001 and thereafter, an |
23 |
| amount equal to the
bonus depreciation deduction taken |
24 |
| on the taxpayer's federal income tax return for the |
25 |
| taxable
year under subsection (k) of Section 168 of the |
26 |
| Internal Revenue Code; |
|
|
|
09600SB2494sam001 |
- 12 - |
LRB096 15388 NHT 36734 a |
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|
1 |
| (D-16) If the taxpayer sells, transfers, abandons, |
2 |
| or otherwise disposes of property for which the |
3 |
| taxpayer was required in any taxable year to
make an |
4 |
| addition modification under subparagraph (D-15), then |
5 |
| an amount equal
to the aggregate amount of the |
6 |
| deductions taken in all taxable
years under |
7 |
| subparagraph (Z) with respect to that property. |
8 |
| If the taxpayer continues to own property through |
9 |
| the last day of the last tax year for which the |
10 |
| taxpayer may claim a depreciation deduction for |
11 |
| federal income tax purposes and for which the taxpayer |
12 |
| was allowed in any taxable year to make a subtraction |
13 |
| modification under subparagraph (Z), then an amount |
14 |
| equal to that subtraction modification.
|
15 |
| The taxpayer is required to make the addition |
16 |
| modification under this
subparagraph
only once with |
17 |
| respect to any one piece of property; |
18 |
| (D-17) An amount equal to the amount otherwise |
19 |
| allowed as a deduction in computing base income for |
20 |
| interest paid, accrued, or incurred, directly or |
21 |
| indirectly, (i) for taxable years ending on or after |
22 |
| December 31, 2004, to a foreign person who would be a |
23 |
| member of the same unitary business group but for the |
24 |
| fact that foreign person's business activity outside |
25 |
| the United States is 80% or more of the foreign |
26 |
| person's total business activity and (ii) for taxable |
|
|
|
09600SB2494sam001 |
- 13 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| years ending on or after December 31, 2008, to a person |
2 |
| who would be a member of the same unitary business |
3 |
| group but for the fact that the person is prohibited |
4 |
| under Section 1501(a)(27) from being included in the |
5 |
| unitary business group because he or she is ordinarily |
6 |
| required to apportion business income under different |
7 |
| subsections of Section 304. The addition modification |
8 |
| required by this subparagraph shall be reduced to the |
9 |
| extent that dividends were included in base income of |
10 |
| the unitary group for the same taxable year and |
11 |
| received by the taxpayer or by a member of the |
12 |
| taxpayer's unitary business group (including amounts |
13 |
| included in gross income under Sections 951 through 964 |
14 |
| of the Internal Revenue Code and amounts included in |
15 |
| gross income under Section 78 of the Internal Revenue |
16 |
| Code) with respect to the stock of the same person to |
17 |
| whom the interest was paid, accrued, or incurred. |
18 |
| This paragraph shall not apply to the following:
|
19 |
| (i) an item of interest paid, accrued, or |
20 |
| incurred, directly or indirectly, to a person who |
21 |
| is subject in a foreign country or state, other |
22 |
| than a state which requires mandatory unitary |
23 |
| reporting, to a tax on or measured by net income |
24 |
| with respect to such interest; or |
25 |
| (ii) an item of interest paid, accrued, or |
26 |
| incurred, directly or indirectly, to a person if |
|
|
|
09600SB2494sam001 |
- 14 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| the taxpayer can establish, based on a |
2 |
| preponderance of the evidence, both of the |
3 |
| following: |
4 |
| (a) the person, during the same taxable |
5 |
| year, paid, accrued, or incurred, the interest |
6 |
| to a person that is not a related member, and |
7 |
| (b) the transaction giving rise to the |
8 |
| interest expense between the taxpayer and the |
9 |
| person did not have as a principal purpose the |
10 |
| avoidance of Illinois income tax, and is paid |
11 |
| pursuant to a contract or agreement that |
12 |
| reflects an arm's-length interest rate and |
13 |
| terms; or
|
14 |
| (iii) the taxpayer can establish, based on |
15 |
| clear and convincing evidence, that the interest |
16 |
| paid, accrued, or incurred relates to a contract or |
17 |
| agreement entered into at arm's-length rates and |
18 |
| terms and the principal purpose for the payment is |
19 |
| not federal or Illinois tax avoidance; or
|
20 |
| (iv) an item of interest paid, accrued, or |
21 |
| incurred, directly or indirectly, to a person if |
22 |
| the taxpayer establishes by clear and convincing |
23 |
| evidence that the adjustments are unreasonable; or |
24 |
| if the taxpayer and the Director agree in writing |
25 |
| to the application or use of an alternative method |
26 |
| of apportionment under Section 304(f).
|
|
|
|
09600SB2494sam001 |
- 15 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| Nothing in this subsection shall preclude the |
2 |
| Director from making any other adjustment |
3 |
| otherwise allowed under Section 404 of this Act for |
4 |
| any tax year beginning after the effective date of |
5 |
| this amendment provided such adjustment is made |
6 |
| pursuant to regulation adopted by the Department |
7 |
| and such regulations provide methods and standards |
8 |
| by which the Department will utilize its authority |
9 |
| under Section 404 of this Act;
|
10 |
| (D-18) An amount equal to the amount of intangible |
11 |
| expenses and costs otherwise allowed as a deduction in |
12 |
| computing base income, and that were paid, accrued, or |
13 |
| incurred, directly or indirectly, (i) for taxable |
14 |
| years ending on or after December 31, 2004, to a |
15 |
| foreign person who would be a member of the same |
16 |
| unitary business group but for the fact that the |
17 |
| foreign person's business activity outside the United |
18 |
| States is 80% or more of that person's total business |
19 |
| activity and (ii) for taxable years ending on or after |
20 |
| December 31, 2008, to a person who would be a member of |
21 |
| the same unitary business group but for the fact that |
22 |
| the person is prohibited under Section 1501(a)(27) |
23 |
| from being included in the unitary business group |
24 |
| because he or she is ordinarily required to apportion |
25 |
| business income under different subsections of Section |
26 |
| 304. The addition modification required by this |
|
|
|
09600SB2494sam001 |
- 16 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| subparagraph shall be reduced to the extent that |
2 |
| dividends were included in base income of the unitary |
3 |
| group for the same taxable year and received by the |
4 |
| taxpayer or by a member of the taxpayer's unitary |
5 |
| business group (including amounts included in gross |
6 |
| income under Sections 951 through 964 of the Internal |
7 |
| Revenue Code and amounts included in gross income under |
8 |
| Section 78 of the Internal Revenue Code) with respect |
9 |
| to the stock of the same person to whom the intangible |
10 |
| expenses and costs were directly or indirectly paid, |
11 |
| incurred, or accrued. The preceding sentence does not |
12 |
| apply to the extent that the same dividends caused a |
13 |
| reduction to the addition modification required under |
14 |
| Section 203(a)(2)(D-17) of this Act. As used in this |
15 |
| subparagraph, the term "intangible expenses and costs" |
16 |
| includes (1) expenses, losses, and costs for, or |
17 |
| related to, the direct or indirect acquisition, use, |
18 |
| maintenance or management, ownership, sale, exchange, |
19 |
| or any other disposition of intangible property; (2) |
20 |
| losses incurred, directly or indirectly, from |
21 |
| factoring transactions or discounting transactions; |
22 |
| (3) royalty, patent, technical, and copyright fees; |
23 |
| (4) licensing fees; and (5) other similar expenses and |
24 |
| costs.
For purposes of this subparagraph, "intangible |
25 |
| property" includes patents, patent applications, trade |
26 |
| names, trademarks, service marks, copyrights, mask |
|
|
|
09600SB2494sam001 |
- 17 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| works, trade secrets, and similar types of intangible |
2 |
| assets. |
3 |
| This paragraph shall not apply to the following: |
4 |
| (i) any item of intangible expenses or costs |
5 |
| paid, accrued, or incurred, directly or |
6 |
| indirectly, from a transaction with a person who is |
7 |
| subject in a foreign country or state, other than a |
8 |
| state which requires mandatory unitary reporting, |
9 |
| to a tax on or measured by net income with respect |
10 |
| to such item; or |
11 |
| (ii) any item of intangible expense or cost |
12 |
| paid, accrued, or incurred, directly or |
13 |
| indirectly, if the taxpayer can establish, based |
14 |
| on a preponderance of the evidence, both of the |
15 |
| following: |
16 |
| (a) the person during the same taxable |
17 |
| year paid, accrued, or incurred, the |
18 |
| intangible expense or cost to a person that is |
19 |
| not a related member, and |
20 |
| (b) the transaction giving rise to the |
21 |
| intangible expense or cost between the |
22 |
| taxpayer and the person did not have as a |
23 |
| principal purpose the avoidance of Illinois |
24 |
| income tax, and is paid pursuant to a contract |
25 |
| or agreement that reflects arm's-length terms; |
26 |
| or |
|
|
|
09600SB2494sam001 |
- 18 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| (iii) any item of intangible expense or cost |
2 |
| paid, accrued, or incurred, directly or |
3 |
| indirectly, from a transaction with a person if the |
4 |
| taxpayer establishes by clear and convincing |
5 |
| evidence, that the adjustments are unreasonable; |
6 |
| or if the taxpayer and the Director agree in |
7 |
| writing to the application or use of an alternative |
8 |
| method of apportionment under Section 304(f);
|
9 |
| Nothing in this subsection shall preclude the |
10 |
| Director from making any other adjustment |
11 |
| otherwise allowed under Section 404 of this Act for |
12 |
| any tax year beginning after the effective date of |
13 |
| this amendment provided such adjustment is made |
14 |
| pursuant to regulation adopted by the Department |
15 |
| and such regulations provide methods and standards |
16 |
| by which the Department will utilize its authority |
17 |
| under Section 404 of this Act;
|
18 |
| (D-19) For taxable years ending on or after |
19 |
| December 31, 2008, an amount equal to the amount of |
20 |
| insurance premium expenses and costs otherwise allowed |
21 |
| as a deduction in computing base income, and that were |
22 |
| paid, accrued, or incurred, directly or indirectly, to |
23 |
| a person who would be a member of the same unitary |
24 |
| business group but for the fact that the person is |
25 |
| prohibited under Section 1501(a)(27) from being |
26 |
| included in the unitary business group because he or |
|
|
|
09600SB2494sam001 |
- 19 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| she is ordinarily required to apportion business |
2 |
| income under different subsections of Section 304. The |
3 |
| addition modification required by this subparagraph |
4 |
| shall be reduced to the extent that dividends were |
5 |
| included in base income of the unitary group for the |
6 |
| same taxable year and received by the taxpayer or by a |
7 |
| member of the taxpayer's unitary business group |
8 |
| (including amounts included in gross income under |
9 |
| Sections 951 through 964 of the Internal Revenue Code |
10 |
| and amounts included in gross income under Section 78 |
11 |
| of the Internal Revenue Code) with respect to the stock |
12 |
| of the same person to whom the premiums and costs were |
13 |
| directly or indirectly paid, incurred, or accrued. The |
14 |
| preceding sentence does not apply to the extent that |
15 |
| the same dividends caused a reduction to the addition |
16 |
| modification required under Section 203(a)(2)(D-17) or |
17 |
| Section 203(a)(2)(D-18) of this Act.
|
18 |
| (D-20) For taxable years beginning on or after |
19 |
| January 1,
2002 and ending on or before December 31, |
20 |
| 2006, in
the
case of a distribution from a qualified |
21 |
| tuition program under Section 529 of
the Internal |
22 |
| Revenue Code, other than (i) a distribution from a |
23 |
| College Savings
Pool created under Section 16.5 of the |
24 |
| State Treasurer Act or (ii) a
distribution from the |
25 |
| Illinois Prepaid Tuition Trust Fund, an amount equal to
|
26 |
| the amount excluded from gross income under Section |
|
|
|
09600SB2494sam001 |
- 20 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| 529(c)(3)(B). For taxable years beginning on or after |
2 |
| January 1, 2007, in the case of a distribution from a |
3 |
| qualified tuition program under Section 529 of the |
4 |
| Internal Revenue Code, other than (i) a distribution |
5 |
| from a College Savings Pool created under Section 16.5 |
6 |
| of the State Treasurer Act, (ii) a distribution from |
7 |
| the Illinois Prepaid Tuition Trust Fund, or (iii) a |
8 |
| distribution from a qualified tuition program under |
9 |
| Section 529 of the Internal Revenue Code that (I) |
10 |
| adopts and determines that its offering materials |
11 |
| comply with the College Savings Plans Network's |
12 |
| disclosure principles and (II) has made reasonable |
13 |
| efforts to inform in-state residents of the existence |
14 |
| of in-state qualified tuition programs by informing |
15 |
| Illinois residents directly and, where applicable, to |
16 |
| inform financial intermediaries distributing the |
17 |
| program to inform in-state residents of the existence |
18 |
| of in-state qualified tuition programs at least |
19 |
| annually, an amount equal to the amount excluded from |
20 |
| gross income under Section 529(c)(3)(B). |
21 |
| For the purposes of this subparagraph (D-20), a |
22 |
| qualified tuition program has made reasonable efforts |
23 |
| if it makes disclosures (which may use the term |
24 |
| "in-state program" or "in-state plan" and need not |
25 |
| specifically refer to Illinois or its qualified |
26 |
| programs by name) (i) directly to prospective |
|
|
|
09600SB2494sam001 |
- 21 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| participants in its offering materials or makes a |
2 |
| public disclosure, such as a website posting; and (ii) |
3 |
| where applicable, to intermediaries selling the |
4 |
| out-of-state program in the same manner that the |
5 |
| out-of-state program distributes its offering |
6 |
| materials; |
7 |
| (D-21) For taxable years beginning on or after |
8 |
| January 1, 2007, in the case of transfer of moneys from |
9 |
| a qualified tuition program under Section 529 of the |
10 |
| Internal Revenue Code that is administered by the State |
11 |
| to an out-of-state program, an amount equal to the |
12 |
| amount of moneys previously deducted from base income |
13 |
| under subsection (a)(2)(Y) of this Section; |
14 |
| (D-22) For taxable years beginning on or after |
15 |
| January 1, 2009, in the case of a nonqualified |
16 |
| withdrawal or refund of moneys from a qualified tuition |
17 |
| program under Section 529 of the Internal Revenue Code |
18 |
| administered by the State that is not used for |
19 |
| qualified expenses at an eligible education |
20 |
| institution, an amount equal to the contribution |
21 |
| component of the nonqualified withdrawal or refund |
22 |
| that was previously deducted from base income under |
23 |
| subsection (a)(2)(y) of this Section, provided that |
24 |
| the withdrawal or refund did not result from the |
25 |
| beneficiary's death or disability; |
26 |
| (D-23) An amount equal to the credit allowable to |
|
|
|
09600SB2494sam001 |
- 22 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| the taxpayer under Section 218(a) of this Act, |
2 |
| determined without regard to Section 218(c) of this |
3 |
| Act; |
4 |
| and by deducting from the total so obtained the
sum of the |
5 |
| following amounts: |
6 |
| (E) For taxable years ending before December 31, |
7 |
| 2001,
any amount included in such total in respect of |
8 |
| any compensation
(including but not limited to any |
9 |
| compensation paid or accrued to a
serviceman while a |
10 |
| prisoner of war or missing in action) paid to a |
11 |
| resident
by reason of being on active duty in the Armed |
12 |
| Forces of the United States
and in respect of any |
13 |
| compensation paid or accrued to a resident who as a
|
14 |
| governmental employee was a prisoner of war or missing |
15 |
| in action, and in
respect of any compensation paid to a |
16 |
| resident in 1971 or thereafter for
annual training |
17 |
| performed pursuant to Sections 502 and 503, Title 32,
|
18 |
| United States Code as a member of the Illinois National |
19 |
| Guard or, beginning with taxable years ending on or |
20 |
| after December 31, 2007, the National Guard of any |
21 |
| other state.
For taxable years ending on or after |
22 |
| December 31, 2001, any amount included in
such total in |
23 |
| respect of any compensation (including but not limited |
24 |
| to any
compensation paid or accrued to a serviceman |
25 |
| while a prisoner of war or missing
in action) paid to a |
26 |
| resident by reason of being a member of any component |
|
|
|
09600SB2494sam001 |
- 23 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| of
the Armed Forces of the United States and in respect |
2 |
| of any compensation paid
or accrued to a resident who |
3 |
| as a governmental employee was a prisoner of war
or |
4 |
| missing in action, and in respect of any compensation |
5 |
| paid to a resident in
2001 or thereafter by reason of |
6 |
| being a member of the Illinois National Guard or, |
7 |
| beginning with taxable years ending on or after |
8 |
| December 31, 2007, the National Guard of any other |
9 |
| state.
The provisions of this amendatory Act of the |
10 |
| 92nd General Assembly are exempt
from the provisions of |
11 |
| Section 250; |
12 |
| (F) An amount equal to all amounts included in such |
13 |
| total pursuant
to the provisions of Sections 402(a), |
14 |
| 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the |
15 |
| Internal Revenue Code, or included in such total as
|
16 |
| distributions under the provisions of any retirement |
17 |
| or disability plan for
employees of any governmental |
18 |
| agency or unit, or retirement payments to
retired |
19 |
| partners, which payments are excluded in computing net |
20 |
| earnings
from self employment by Section 1402 of the |
21 |
| Internal Revenue Code and
regulations adopted pursuant |
22 |
| thereto; |
23 |
| (G) The valuation limitation amount; |
24 |
| (H) An amount equal to the amount of any tax |
25 |
| imposed by this Act
which was refunded to the taxpayer |
26 |
| and included in such total for the
taxable year; |
|
|
|
09600SB2494sam001 |
- 24 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| (I) An amount equal to all amounts included in such |
2 |
| total pursuant
to the provisions of Section 111 of the |
3 |
| Internal Revenue Code as a
recovery of items previously |
4 |
| deducted from adjusted gross income in the
computation |
5 |
| of taxable income; |
6 |
| (J) An amount equal to those dividends included in |
7 |
| such total which were
paid by a corporation which |
8 |
| conducts business operations in an Enterprise
Zone or |
9 |
| zones created under the Illinois Enterprise Zone Act or |
10 |
| a River Edge Redevelopment Zone or zones created under |
11 |
| the River Edge Redevelopment Zone Act, and conducts
|
12 |
| substantially all of its operations in an Enterprise |
13 |
| Zone or zones or a River Edge Redevelopment Zone or |
14 |
| zones. This subparagraph (J) is exempt from the |
15 |
| provisions of Section 250; |
16 |
| (K) An amount equal to those dividends included in |
17 |
| such total that
were paid by a corporation that |
18 |
| conducts business operations in a federally
designated |
19 |
| Foreign Trade Zone or Sub-Zone and that is designated a |
20 |
| High Impact
Business located in Illinois; provided |
21 |
| that dividends eligible for the
deduction provided in |
22 |
| subparagraph (J) of paragraph (2) of this subsection
|
23 |
| shall not be eligible for the deduction provided under |
24 |
| this subparagraph
(K); |
25 |
| (L) For taxable years ending after December 31, |
26 |
| 1983, an amount equal to
all social security benefits |
|
|
|
09600SB2494sam001 |
- 25 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| and railroad retirement benefits included in
such |
2 |
| total pursuant to Sections 72(r) and 86 of the Internal |
3 |
| Revenue Code; |
4 |
| (M) With the exception of any amounts subtracted |
5 |
| under subparagraph
(N), an amount equal to the sum of |
6 |
| all amounts disallowed as
deductions by (i) Sections |
7 |
| 171(a) (2), and 265(2) of the Internal Revenue Code
of |
8 |
| 1954, as now or hereafter amended, and all amounts of |
9 |
| expenses allocable
to interest and disallowed as |
10 |
| deductions by Section 265(1) of the Internal
Revenue |
11 |
| Code of 1954, as now or hereafter amended;
and (ii) for |
12 |
| taxable years
ending on or after August 13, 1999, |
13 |
| Sections 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of |
14 |
| the Internal Revenue Code; the provisions of this
|
15 |
| subparagraph are exempt from the provisions of Section |
16 |
| 250; |
17 |
| (N) An amount equal to all amounts included in such |
18 |
| total which are
exempt from taxation by this State |
19 |
| either by reason of its statutes or
Constitution
or by |
20 |
| reason of the Constitution, treaties or statutes of the |
21 |
| United States;
provided that, in the case of any |
22 |
| statute of this State that exempts income
derived from |
23 |
| bonds or other obligations from the tax imposed under |
24 |
| this Act,
the amount exempted shall be the interest net |
25 |
| of bond premium amortization; |
26 |
| (O) An amount equal to any contribution made to a |
|
|
|
09600SB2494sam001 |
- 26 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| job training
project established pursuant to the Tax |
2 |
| Increment Allocation Redevelopment Act; |
3 |
| (P) An amount equal to the amount of the deduction |
4 |
| used to compute the
federal income tax credit for |
5 |
| restoration of substantial amounts held under
claim of |
6 |
| right for the taxable year pursuant to Section 1341 of |
7 |
| the
Internal Revenue Code of 1986; |
8 |
| (Q) An amount equal to any amounts included in such |
9 |
| total, received by
the taxpayer as an acceleration in |
10 |
| the payment of life, endowment or annuity
benefits in |
11 |
| advance of the time they would otherwise be payable as |
12 |
| an indemnity
for a terminal illness; |
13 |
| (R) An amount equal to the amount of any federal or |
14 |
| State bonus paid
to veterans of the Persian Gulf War; |
15 |
| (S) An amount, to the extent included in adjusted |
16 |
| gross income, equal
to the amount of a contribution |
17 |
| made in the taxable year on behalf of the
taxpayer to a |
18 |
| medical care savings account established under the |
19 |
| Medical Care
Savings Account Act or the Medical Care |
20 |
| Savings Account Act of 2000 to the
extent the |
21 |
| contribution is accepted by the account
administrator |
22 |
| as provided in that Act; |
23 |
| (T) An amount, to the extent included in adjusted |
24 |
| gross income, equal to
the amount of interest earned in |
25 |
| the taxable year on a medical care savings
account |
26 |
| established under the Medical Care Savings Account Act |
|
|
|
09600SB2494sam001 |
- 27 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| or the Medical
Care Savings Account Act of 2000 on |
2 |
| behalf of the
taxpayer, other than interest added |
3 |
| pursuant to item (D-5) of this paragraph
(2); |
4 |
| (U) For one taxable year beginning on or after |
5 |
| January 1,
1994, an
amount equal to the total amount of |
6 |
| tax imposed and paid under subsections (a)
and (b) of |
7 |
| Section 201 of this Act on grant amounts received by |
8 |
| the taxpayer
under the Nursing Home Grant Assistance |
9 |
| Act during the taxpayer's taxable years
1992 and 1993; |
10 |
| (V) Beginning with tax years ending on or after |
11 |
| December 31, 1995 and
ending with tax years ending on |
12 |
| or before December 31, 2004, an amount equal to
the |
13 |
| amount paid by a taxpayer who is a
self-employed |
14 |
| taxpayer, a partner of a partnership, or a
shareholder |
15 |
| in a Subchapter S corporation for health insurance or |
16 |
| long-term
care insurance for that taxpayer or that |
17 |
| taxpayer's spouse or dependents, to
the extent that the |
18 |
| amount paid for that health insurance or long-term care
|
19 |
| insurance may be deducted under Section 213 of the |
20 |
| Internal Revenue Code of
1986, has not been deducted on |
21 |
| the federal income tax return of the taxpayer,
and does |
22 |
| not exceed the taxable income attributable to that |
23 |
| taxpayer's income,
self-employment income, or |
24 |
| Subchapter S corporation income; except that no
|
25 |
| deduction shall be allowed under this item (V) if the |
26 |
| taxpayer is eligible to
participate in any health |
|
|
|
09600SB2494sam001 |
- 28 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| insurance or long-term care insurance plan of an
|
2 |
| employer of the taxpayer or the taxpayer's
spouse. The |
3 |
| amount of the health insurance and long-term care |
4 |
| insurance
subtracted under this item (V) shall be |
5 |
| determined by multiplying total
health insurance and |
6 |
| long-term care insurance premiums paid by the taxpayer
|
7 |
| times a number that represents the fractional |
8 |
| percentage of eligible medical
expenses under Section |
9 |
| 213 of the Internal Revenue Code of 1986 not actually
|
10 |
| deducted on the taxpayer's federal income tax return; |
11 |
| (W) For taxable years beginning on or after January |
12 |
| 1, 1998,
all amounts included in the taxpayer's federal |
13 |
| gross income
in the taxable year from amounts converted |
14 |
| from a regular IRA to a Roth IRA.
This paragraph is |
15 |
| exempt from the provisions of Section
250; |
16 |
| (X) For taxable year 1999 and thereafter, an amount |
17 |
| equal to the
amount of any (i) distributions, to the |
18 |
| extent includible in gross income for
federal income |
19 |
| tax purposes, made to the taxpayer because of his or |
20 |
| her status
as a victim of persecution for racial or |
21 |
| religious reasons by Nazi Germany or
any other Axis |
22 |
| regime or as an heir of the victim and (ii) items
of |
23 |
| income, to the extent
includible in gross income for |
24 |
| federal income tax purposes, attributable to,
derived |
25 |
| from or in any way related to assets stolen from, |
26 |
| hidden from, or
otherwise lost to a victim of
|
|
|
|
09600SB2494sam001 |
- 29 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| persecution for racial or religious reasons by Nazi |
2 |
| Germany or any other Axis
regime immediately prior to, |
3 |
| during, and immediately after World War II,
including, |
4 |
| but
not limited to, interest on the proceeds receivable |
5 |
| as insurance
under policies issued to a victim of |
6 |
| persecution for racial or religious
reasons
by Nazi |
7 |
| Germany or any other Axis regime by European insurance |
8 |
| companies
immediately prior to and during World War II;
|
9 |
| provided, however, this subtraction from federal |
10 |
| adjusted gross income does not
apply to assets acquired |
11 |
| with such assets or with the proceeds from the sale of
|
12 |
| such assets; provided, further, this paragraph shall |
13 |
| only apply to a taxpayer
who was the first recipient of |
14 |
| such assets after their recovery and who is a
victim of |
15 |
| persecution for racial or religious reasons
by Nazi |
16 |
| Germany or any other Axis regime or as an heir of the |
17 |
| victim. The
amount of and the eligibility for any |
18 |
| public assistance, benefit, or
similar entitlement is |
19 |
| not affected by the inclusion of items (i) and (ii) of
|
20 |
| this paragraph in gross income for federal income tax |
21 |
| purposes.
This paragraph is exempt from the provisions |
22 |
| of Section 250; |
23 |
| (Y) For taxable years beginning on or after January |
24 |
| 1, 2002
and ending
on or before December 31, 2004, |
25 |
| moneys contributed in the taxable year to a College |
26 |
| Savings Pool account under
Section 16.5 of the State |
|
|
|
09600SB2494sam001 |
- 30 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| Treasurer Act, except that amounts excluded from
gross |
2 |
| income under Section 529(c)(3)(C)(i) of the Internal |
3 |
| Revenue Code
shall not be considered moneys |
4 |
| contributed under this subparagraph (Y). For taxable |
5 |
| years beginning on or after January 1, 2005, a maximum |
6 |
| of $10,000
contributed
in the
taxable year to (i) a |
7 |
| College Savings Pool account under Section 16.5 of the
|
8 |
| State
Treasurer Act or (ii) the Illinois Prepaid |
9 |
| Tuition Trust Fund,
except that
amounts excluded from |
10 |
| gross income under Section 529(c)(3)(C)(i) of the
|
11 |
| Internal
Revenue Code shall not be considered moneys |
12 |
| contributed under this subparagraph
(Y). For purposes |
13 |
| of this subparagraph, contributions made by an |
14 |
| employer on behalf of an employee, or matching |
15 |
| contributions made by an employee, shall be treated as |
16 |
| made by the employee. This
subparagraph (Y) is exempt |
17 |
| from the provisions of Section 250; |
18 |
| (Z) For taxable years 2001 and thereafter, for the |
19 |
| taxable year in
which the bonus depreciation deduction
|
20 |
| is taken on the taxpayer's federal income tax return |
21 |
| under
subsection (k) of Section 168 of the Internal |
22 |
| Revenue Code and for each
applicable taxable year |
23 |
| thereafter, an amount equal to "x", where: |
24 |
| (1) "y" equals the amount of the depreciation |
25 |
| deduction taken for the
taxable year
on the |
26 |
| taxpayer's federal income tax return on property |
|
|
|
09600SB2494sam001 |
- 31 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| for which the bonus
depreciation deduction
was |
2 |
| taken in any year under subsection (k) of Section |
3 |
| 168 of the Internal
Revenue Code, but not including |
4 |
| the bonus depreciation deduction; |
5 |
| (2) for taxable years ending on or before |
6 |
| December 31, 2005, "x" equals "y" multiplied by 30 |
7 |
| and then divided by 70 (or "y"
multiplied by |
8 |
| 0.429); and |
9 |
| (3) for taxable years ending after December |
10 |
| 31, 2005: |
11 |
| (i) for property on which a bonus |
12 |
| depreciation deduction of 30% of the adjusted |
13 |
| basis was taken, "x" equals "y" multiplied by |
14 |
| 30 and then divided by 70 (or "y"
multiplied by |
15 |
| 0.429); and |
16 |
| (ii) for property on which a bonus |
17 |
| depreciation deduction of 50% of the adjusted |
18 |
| basis was taken, "x" equals "y" multiplied by |
19 |
| 1.0. |
20 |
| The aggregate amount deducted under this |
21 |
| subparagraph in all taxable
years for any one piece of |
22 |
| property may not exceed the amount of the bonus
|
23 |
| depreciation deduction
taken on that property on the |
24 |
| taxpayer's federal income tax return under
subsection |
25 |
| (k) of Section 168 of the Internal Revenue Code. This |
26 |
| subparagraph (Z) is exempt from the provisions of |
|
|
|
09600SB2494sam001 |
- 32 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| Section 250; |
2 |
| (AA) If the taxpayer sells, transfers, abandons, |
3 |
| or otherwise disposes of
property for which the |
4 |
| taxpayer was required in any taxable year to make an
|
5 |
| addition modification under subparagraph (D-15), then |
6 |
| an amount equal to that
addition modification.
|
7 |
| If the taxpayer continues to own property through |
8 |
| the last day of the last tax year for which the |
9 |
| taxpayer may claim a depreciation deduction for |
10 |
| federal income tax purposes and for which the taxpayer |
11 |
| was required in any taxable year to make an addition |
12 |
| modification under subparagraph (D-15), then an amount |
13 |
| equal to that addition modification.
|
14 |
| The taxpayer is allowed to take the deduction under |
15 |
| this subparagraph
only once with respect to any one |
16 |
| piece of property. |
17 |
| This subparagraph (AA) is exempt from the |
18 |
| provisions of Section 250; |
19 |
| (BB) Any amount included in adjusted gross income, |
20 |
| other
than
salary,
received by a driver in a |
21 |
| ridesharing arrangement using a motor vehicle; |
22 |
| (CC) The amount of (i) any interest income (net of |
23 |
| the deductions allocable thereto) taken into account |
24 |
| for the taxable year with respect to a transaction with |
25 |
| a taxpayer that is required to make an addition |
26 |
| modification with respect to such transaction under |
|
|
|
09600SB2494sam001 |
- 33 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-12), |
2 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
3 |
| the amount of that addition modification, and
(ii) any |
4 |
| income from intangible property (net of the deductions |
5 |
| allocable thereto) taken into account for the taxable |
6 |
| year with respect to a transaction with a taxpayer that |
7 |
| is required to make an addition modification with |
8 |
| respect to such transaction under Section |
9 |
| 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
10 |
| 203(d)(2)(D-8), but not to exceed the amount of that |
11 |
| addition modification. This subparagraph (CC) is |
12 |
| exempt from the provisions of Section 250; |
13 |
| (DD) An amount equal to the interest income taken |
14 |
| into account for the taxable year (net of the |
15 |
| deductions allocable thereto) with respect to |
16 |
| transactions with (i) a foreign person who would be a |
17 |
| member of the taxpayer's unitary business group but for |
18 |
| the fact that the foreign person's business activity |
19 |
| outside the United States is 80% or more of that |
20 |
| person's total business activity and (ii) for taxable |
21 |
| years ending on or after December 31, 2008, to a person |
22 |
| who would be a member of the same unitary business |
23 |
| group but for the fact that the person is prohibited |
24 |
| under Section 1501(a)(27) from being included in the |
25 |
| unitary business group because he or she is ordinarily |
26 |
| required to apportion business income under different |
|
|
|
09600SB2494sam001 |
- 34 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| subsections of Section 304, but not to exceed the |
2 |
| addition modification required to be made for the same |
3 |
| taxable year under Section 203(a)(2)(D-17) for |
4 |
| interest paid, accrued, or incurred, directly or |
5 |
| indirectly, to the same person. This subparagraph (DD) |
6 |
| is exempt from the provisions of Section 250; and |
7 |
| (EE) An amount equal to the income from intangible |
8 |
| property taken into account for the taxable year (net |
9 |
| of the deductions allocable thereto) with respect to |
10 |
| transactions with (i) a foreign person who would be a |
11 |
| member of the taxpayer's unitary business group but for |
12 |
| the fact that the foreign person's business activity |
13 |
| outside the United States is 80% or more of that |
14 |
| person's total business activity and (ii) for taxable |
15 |
| years ending on or after December 31, 2008, to a person |
16 |
| who would be a member of the same unitary business |
17 |
| group but for the fact that the person is prohibited |
18 |
| under Section 1501(a)(27) from being included in the |
19 |
| unitary business group because he or she is ordinarily |
20 |
| required to apportion business income under different |
21 |
| subsections of Section 304, but not to exceed the |
22 |
| addition modification required to be made for the same |
23 |
| taxable year under Section 203(a)(2)(D-18) for |
24 |
| intangible expenses and costs paid, accrued, or |
25 |
| incurred, directly or indirectly, to the same foreign |
26 |
| person. This subparagraph (EE) is exempt from the |
|
|
|
09600SB2494sam001 |
- 35 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| provisions of Section 250.
|
2 |
| (FF) For taxable years ending on or after December |
3 |
| 31, 2010, an amount, to the extent that it is included |
4 |
| in adjusted gross income, equal to any voucher redeemed |
5 |
| under the School Choice Act. This subparagraph is |
6 |
| exempt from the provisions of Section 250.
|
7 |
| (b) Corporations. |
8 |
| (1) In general. In the case of a corporation, base |
9 |
| income means an
amount equal to the taxpayer's taxable |
10 |
| income for the taxable year as
modified by paragraph (2). |
11 |
| (2) Modifications. The taxable income referred to in |
12 |
| paragraph (1)
shall be modified by adding thereto the sum |
13 |
| of the following amounts: |
14 |
| (A) An amount equal to all amounts paid or accrued |
15 |
| to the taxpayer
as interest and all distributions |
16 |
| received from regulated investment
companies during |
17 |
| the taxable year to the extent excluded from gross
|
18 |
| income in the computation of taxable income; |
19 |
| (B) An amount equal to the amount of tax imposed by |
20 |
| this Act to the
extent deducted from gross income in |
21 |
| the computation of taxable income
for the taxable year; |
22 |
| (C) In the case of a regulated investment company, |
23 |
| an amount equal to
the excess of (i) the net long-term |
24 |
| capital gain for the taxable year, over
(ii) the amount |
25 |
| of the capital gain dividends designated as such in |
|
|
|
09600SB2494sam001 |
- 36 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| accordance
with Section 852(b)(3)(C) of the Internal |
2 |
| Revenue Code and any amount
designated under Section |
3 |
| 852(b)(3)(D) of the Internal Revenue Code,
|
4 |
| attributable to the taxable year (this amendatory Act |
5 |
| of 1995
(Public Act 89-89) is declarative of existing |
6 |
| law and is not a new
enactment); |
7 |
| (D) The amount of any net operating loss deduction |
8 |
| taken in arriving
at taxable income, other than a net |
9 |
| operating loss carried forward from a
taxable year |
10 |
| ending prior to December 31, 1986; |
11 |
| (E) For taxable years in which a net operating loss |
12 |
| carryback or
carryforward from a taxable year ending |
13 |
| prior to December 31, 1986 is an
element of taxable |
14 |
| income under paragraph (1) of subsection (e) or
|
15 |
| subparagraph (E) of paragraph (2) of subsection (e), |
16 |
| the amount by which
addition modifications other than |
17 |
| those provided by this subparagraph (E)
exceeded |
18 |
| subtraction modifications in such earlier taxable |
19 |
| year, with the
following limitations applied in the |
20 |
| order that they are listed: |
21 |
| (i) the addition modification relating to the |
22 |
| net operating loss
carried back or forward to the |
23 |
| taxable year from any taxable year ending
prior to |
24 |
| December 31, 1986 shall be reduced by the amount of |
25 |
| addition
modification under this subparagraph (E) |
26 |
| which related to that net operating
loss and which |
|
|
|
09600SB2494sam001 |
- 37 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| was taken into account in calculating the base |
2 |
| income of an
earlier taxable year, and |
3 |
| (ii) the addition modification relating to the |
4 |
| net operating loss
carried back or forward to the |
5 |
| taxable year from any taxable year ending
prior to |
6 |
| December 31, 1986 shall not exceed the amount of |
7 |
| such carryback or
carryforward; |
8 |
| For taxable years in which there is a net operating |
9 |
| loss carryback or
carryforward from more than one other |
10 |
| taxable year ending prior to December
31, 1986, the |
11 |
| addition modification provided in this subparagraph |
12 |
| (E) shall
be the sum of the amounts computed |
13 |
| independently under the preceding
provisions of this |
14 |
| subparagraph (E) for each such taxable year; |
15 |
| (E-5) For taxable years ending after December 31, |
16 |
| 1997, an
amount equal to any eligible remediation costs |
17 |
| that the corporation
deducted in computing adjusted |
18 |
| gross income and for which the
corporation claims a |
19 |
| credit under subsection (l) of Section 201; |
20 |
| (E-10) For taxable years 2001 and thereafter, an |
21 |
| amount equal to the
bonus depreciation deduction taken |
22 |
| on the taxpayer's federal income tax return for the |
23 |
| taxable
year under subsection (k) of Section 168 of the |
24 |
| Internal Revenue Code; |
25 |
| (E-11) If the taxpayer sells, transfers, abandons, |
26 |
| or otherwise disposes of property for which the |
|
|
|
09600SB2494sam001 |
- 38 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| taxpayer was required in any taxable year to
make an |
2 |
| addition modification under subparagraph (E-10), then |
3 |
| an amount equal
to the aggregate amount of the |
4 |
| deductions taken in all taxable
years under |
5 |
| subparagraph (T) with respect to that property. |
6 |
| If the taxpayer continues to own property through |
7 |
| the last day of the last tax year for which the |
8 |
| taxpayer may claim a depreciation deduction for |
9 |
| federal income tax purposes and for which the taxpayer |
10 |
| was allowed in any taxable year to make a subtraction |
11 |
| modification under subparagraph (T), then an amount |
12 |
| equal to that subtraction modification.
|
13 |
| The taxpayer is required to make the addition |
14 |
| modification under this
subparagraph
only once with |
15 |
| respect to any one piece of property; |
16 |
| (E-12) An amount equal to the amount otherwise |
17 |
| allowed as a deduction in computing base income for |
18 |
| interest paid, accrued, or incurred, directly or |
19 |
| indirectly, (i) for taxable years ending on or after |
20 |
| December 31, 2004, to a foreign person who would be a |
21 |
| member of the same unitary business group but for the |
22 |
| fact the foreign person's business activity outside |
23 |
| the United States is 80% or more of the foreign |
24 |
| person's total business activity and (ii) for taxable |
25 |
| years ending on or after December 31, 2008, to a person |
26 |
| who would be a member of the same unitary business |
|
|
|
09600SB2494sam001 |
- 39 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| group but for the fact that the person is prohibited |
2 |
| under Section 1501(a)(27) from being included in the |
3 |
| unitary business group because he or she is ordinarily |
4 |
| required to apportion business income under different |
5 |
| subsections of Section 304. The addition modification |
6 |
| required by this subparagraph shall be reduced to the |
7 |
| extent that dividends were included in base income of |
8 |
| the unitary group for the same taxable year and |
9 |
| received by the taxpayer or by a member of the |
10 |
| taxpayer's unitary business group (including amounts |
11 |
| included in gross income pursuant to Sections 951 |
12 |
| through 964 of the Internal Revenue Code and amounts |
13 |
| included in gross income under Section 78 of the |
14 |
| Internal Revenue Code) with respect to the stock of the |
15 |
| same person to whom the interest was paid, accrued, or |
16 |
| incurred.
|
17 |
| This paragraph shall not apply to the following:
|
18 |
| (i) an item of interest paid, accrued, or |
19 |
| incurred, directly or indirectly, to a person who |
20 |
| is subject in a foreign country or state, other |
21 |
| than a state which requires mandatory unitary |
22 |
| reporting, to a tax on or measured by net income |
23 |
| with respect to such interest; or |
24 |
| (ii) an item of interest paid, accrued, or |
25 |
| incurred, directly or indirectly, to a person if |
26 |
| the taxpayer can establish, based on a |
|
|
|
09600SB2494sam001 |
- 40 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| preponderance of the evidence, both of the |
2 |
| following: |
3 |
| (a) the person, during the same taxable |
4 |
| year, paid, accrued, or incurred, the interest |
5 |
| to a person that is not a related member, and |
6 |
| (b) the transaction giving rise to the |
7 |
| interest expense between the taxpayer and the |
8 |
| person did not have as a principal purpose the |
9 |
| avoidance of Illinois income tax, and is paid |
10 |
| pursuant to a contract or agreement that |
11 |
| reflects an arm's-length interest rate and |
12 |
| terms; or
|
13 |
| (iii) the taxpayer can establish, based on |
14 |
| clear and convincing evidence, that the interest |
15 |
| paid, accrued, or incurred relates to a contract or |
16 |
| agreement entered into at arm's-length rates and |
17 |
| terms and the principal purpose for the payment is |
18 |
| not federal or Illinois tax avoidance; or
|
19 |
| (iv) an item of interest paid, accrued, or |
20 |
| incurred, directly or indirectly, to a person if |
21 |
| the taxpayer establishes by clear and convincing |
22 |
| evidence that the adjustments are unreasonable; or |
23 |
| if the taxpayer and the Director agree in writing |
24 |
| to the application or use of an alternative method |
25 |
| of apportionment under Section 304(f).
|
26 |
| Nothing in this subsection shall preclude the |
|
|
|
09600SB2494sam001 |
- 41 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| Director from making any other adjustment |
2 |
| otherwise allowed under Section 404 of this Act for |
3 |
| any tax year beginning after the effective date of |
4 |
| this amendment provided such adjustment is made |
5 |
| pursuant to regulation adopted by the Department |
6 |
| and such regulations provide methods and standards |
7 |
| by which the Department will utilize its authority |
8 |
| under Section 404 of this Act;
|
9 |
| (E-13) An amount equal to the amount of intangible |
10 |
| expenses and costs otherwise allowed as a deduction in |
11 |
| computing base income, and that were paid, accrued, or |
12 |
| incurred, directly or indirectly, (i) for taxable |
13 |
| years ending on or after December 31, 2004, to a |
14 |
| foreign person who would be a member of the same |
15 |
| unitary business group but for the fact that the |
16 |
| foreign person's business activity outside the United |
17 |
| States is 80% or more of that person's total business |
18 |
| activity and (ii) for taxable years ending on or after |
19 |
| December 31, 2008, to a person who would be a member of |
20 |
| the same unitary business group but for the fact that |
21 |
| the person is prohibited under Section 1501(a)(27) |
22 |
| from being included in the unitary business group |
23 |
| because he or she is ordinarily required to apportion |
24 |
| business income under different subsections of Section |
25 |
| 304. The addition modification required by this |
26 |
| subparagraph shall be reduced to the extent that |
|
|
|
09600SB2494sam001 |
- 42 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| dividends were included in base income of the unitary |
2 |
| group for the same taxable year and received by the |
3 |
| taxpayer or by a member of the taxpayer's unitary |
4 |
| business group (including amounts included in gross |
5 |
| income pursuant to Sections 951 through 964 of the |
6 |
| Internal Revenue Code and amounts included in gross |
7 |
| income under Section 78 of the Internal Revenue Code) |
8 |
| with respect to the stock of the same person to whom |
9 |
| the intangible expenses and costs were directly or |
10 |
| indirectly paid, incurred, or accrued. The preceding |
11 |
| sentence shall not apply to the extent that the same |
12 |
| dividends caused a reduction to the addition |
13 |
| modification required under Section 203(b)(2)(E-12) of |
14 |
| this Act.
As used in this subparagraph, the term |
15 |
| "intangible expenses and costs" includes (1) expenses, |
16 |
| losses, and costs for, or related to, the direct or |
17 |
| indirect acquisition, use, maintenance or management, |
18 |
| ownership, sale, exchange, or any other disposition of |
19 |
| intangible property; (2) losses incurred, directly or |
20 |
| indirectly, from factoring transactions or discounting |
21 |
| transactions; (3) royalty, patent, technical, and |
22 |
| copyright fees; (4) licensing fees; and (5) other |
23 |
| similar expenses and costs.
For purposes of this |
24 |
| subparagraph, "intangible property" includes patents, |
25 |
| patent applications, trade names, trademarks, service |
26 |
| marks, copyrights, mask works, trade secrets, and |
|
|
|
09600SB2494sam001 |
- 43 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| similar types of intangible assets. |
2 |
| This paragraph shall not apply to the following: |
3 |
| (i) any item of intangible expenses or costs |
4 |
| paid, accrued, or incurred, directly or |
5 |
| indirectly, from a transaction with a person who is |
6 |
| subject in a foreign country or state, other than a |
7 |
| state which requires mandatory unitary reporting, |
8 |
| to a tax on or measured by net income with respect |
9 |
| to such item; or |
10 |
| (ii) any item of intangible expense or cost |
11 |
| paid, accrued, or incurred, directly or |
12 |
| indirectly, if the taxpayer can establish, based |
13 |
| on a preponderance of the evidence, both of the |
14 |
| following: |
15 |
| (a) the person during the same taxable |
16 |
| year paid, accrued, or incurred, the |
17 |
| intangible expense or cost to a person that is |
18 |
| not a related member, and |
19 |
| (b) the transaction giving rise to the |
20 |
| intangible expense or cost between the |
21 |
| taxpayer and the person did not have as a |
22 |
| principal purpose the avoidance of Illinois |
23 |
| income tax, and is paid pursuant to a contract |
24 |
| or agreement that reflects arm's-length terms; |
25 |
| or |
26 |
| (iii) any item of intangible expense or cost |
|
|
|
09600SB2494sam001 |
- 44 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| paid, accrued, or incurred, directly or |
2 |
| indirectly, from a transaction with a person if the |
3 |
| taxpayer establishes by clear and convincing |
4 |
| evidence, that the adjustments are unreasonable; |
5 |
| or if the taxpayer and the Director agree in |
6 |
| writing to the application or use of an alternative |
7 |
| method of apportionment under Section 304(f);
|
8 |
| Nothing in this subsection shall preclude the |
9 |
| Director from making any other adjustment |
10 |
| otherwise allowed under Section 404 of this Act for |
11 |
| any tax year beginning after the effective date of |
12 |
| this amendment provided such adjustment is made |
13 |
| pursuant to regulation adopted by the Department |
14 |
| and such regulations provide methods and standards |
15 |
| by which the Department will utilize its authority |
16 |
| under Section 404 of this Act;
|
17 |
| (E-14) For taxable years ending on or after |
18 |
| December 31, 2008, an amount equal to the amount of |
19 |
| insurance premium expenses and costs otherwise allowed |
20 |
| as a deduction in computing base income, and that were |
21 |
| paid, accrued, or incurred, directly or indirectly, to |
22 |
| a person who would be a member of the same unitary |
23 |
| business group but for the fact that the person is |
24 |
| prohibited under Section 1501(a)(27) from being |
25 |
| included in the unitary business group because he or |
26 |
| she is ordinarily required to apportion business |
|
|
|
09600SB2494sam001 |
- 45 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| income under different subsections of Section 304. The |
2 |
| addition modification required by this subparagraph |
3 |
| shall be reduced to the extent that dividends were |
4 |
| included in base income of the unitary group for the |
5 |
| same taxable year and received by the taxpayer or by a |
6 |
| member of the taxpayer's unitary business group |
7 |
| (including amounts included in gross income under |
8 |
| Sections 951 through 964 of the Internal Revenue Code |
9 |
| and amounts included in gross income under Section 78 |
10 |
| of the Internal Revenue Code) with respect to the stock |
11 |
| of the same person to whom the premiums and costs were |
12 |
| directly or indirectly paid, incurred, or accrued. The |
13 |
| preceding sentence does not apply to the extent that |
14 |
| the same dividends caused a reduction to the addition |
15 |
| modification required under Section 203(b)(2)(E-12) or |
16 |
| Section 203(b)(2)(E-13) of this Act;
|
17 |
| (E-15) For taxable years beginning after December |
18 |
| 31, 2008, any deduction for dividends paid by a captive |
19 |
| real estate investment trust that is allowed to a real |
20 |
| estate investment trust under Section 857(b)(2)(B) of |
21 |
| the Internal Revenue Code for dividends paid; |
22 |
| (E-16) An amount equal to the credit allowable to |
23 |
| the taxpayer under Section 218(a) of this Act, |
24 |
| determined without regard to Section 218(c) of this |
25 |
| Act; |
26 |
| and by deducting from the total so obtained the sum of the |
|
|
|
09600SB2494sam001 |
- 46 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| following
amounts: |
2 |
| (F) An amount equal to the amount of any tax |
3 |
| imposed by this Act
which was refunded to the taxpayer |
4 |
| and included in such total for the
taxable year; |
5 |
| (G) An amount equal to any amount included in such |
6 |
| total under
Section 78 of the Internal Revenue Code; |
7 |
| (H) In the case of a regulated investment company, |
8 |
| an amount equal
to the amount of exempt interest |
9 |
| dividends as defined in subsection (b)
(5) of Section |
10 |
| 852 of the Internal Revenue Code, paid to shareholders
|
11 |
| for the taxable year; |
12 |
| (I) With the exception of any amounts subtracted |
13 |
| under subparagraph
(J),
an amount equal to the sum of |
14 |
| all amounts disallowed as
deductions by (i) Sections |
15 |
| 171(a) (2), and 265(a)(2) and amounts disallowed as
|
16 |
| interest expense by Section 291(a)(3) of the Internal |
17 |
| Revenue Code, as now
or hereafter amended, and all |
18 |
| amounts of expenses allocable to interest and
|
19 |
| disallowed as deductions by Section 265(a)(1) of the |
20 |
| Internal Revenue Code,
as now or hereafter amended;
and |
21 |
| (ii) for taxable years
ending on or after August 13, |
22 |
| 1999, Sections
171(a)(2), 265,
280C, 291(a)(3), and |
23 |
| 832(b)(5)(B)(i) of the Internal Revenue Code; the
|
24 |
| provisions of this
subparagraph are exempt from the |
25 |
| provisions of Section 250; |
26 |
| (J) An amount equal to all amounts included in such |
|
|
|
09600SB2494sam001 |
- 47 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| total which are
exempt from taxation by this State |
2 |
| either by reason of its statutes or
Constitution
or by |
3 |
| reason of the Constitution, treaties or statutes of the |
4 |
| United States;
provided that, in the case of any |
5 |
| statute of this State that exempts income
derived from |
6 |
| bonds or other obligations from the tax imposed under |
7 |
| this Act,
the amount exempted shall be the interest net |
8 |
| of bond premium amortization; |
9 |
| (K) An amount equal to those dividends included in |
10 |
| such total
which were paid by a corporation which |
11 |
| conducts
business operations in an Enterprise Zone or |
12 |
| zones created under
the Illinois Enterprise Zone Act or |
13 |
| a River Edge Redevelopment Zone or zones created under |
14 |
| the River Edge Redevelopment Zone Act and conducts |
15 |
| substantially all of its
operations in an Enterprise |
16 |
| Zone or zones or a River Edge Redevelopment Zone or |
17 |
| zones. This subparagraph (K) is exempt from the |
18 |
| provisions of Section 250; |
19 |
| (L) An amount equal to those dividends included in |
20 |
| such total that
were paid by a corporation that |
21 |
| conducts business operations in a federally
designated |
22 |
| Foreign Trade Zone or Sub-Zone and that is designated a |
23 |
| High Impact
Business located in Illinois; provided |
24 |
| that dividends eligible for the
deduction provided in |
25 |
| subparagraph (K) of paragraph 2 of this subsection
|
26 |
| shall not be eligible for the deduction provided under |
|
|
|
09600SB2494sam001 |
- 48 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| this subparagraph
(L); |
2 |
| (M) For any taxpayer that is a financial |
3 |
| organization within the meaning
of Section 304(c) of |
4 |
| this Act, an amount included in such total as interest
|
5 |
| income from a loan or loans made by such taxpayer to a |
6 |
| borrower, to the extent
that such a loan is secured by |
7 |
| property which is eligible for the Enterprise
Zone |
8 |
| Investment Credit or the River Edge Redevelopment Zone |
9 |
| Investment Credit. To determine the portion of a loan |
10 |
| or loans that is
secured by property eligible for a |
11 |
| Section 201(f) investment
credit to the borrower, the |
12 |
| entire principal amount of the loan or loans
between |
13 |
| the taxpayer and the borrower should be divided into |
14 |
| the basis of the
Section 201(f) investment credit |
15 |
| property which secures the
loan or loans, using for |
16 |
| this purpose the original basis of such property on
the |
17 |
| date that it was placed in service in the
Enterprise |
18 |
| Zone or the River Edge Redevelopment Zone. The |
19 |
| subtraction modification available to taxpayer in any
|
20 |
| year under this subsection shall be that portion of the |
21 |
| total interest paid
by the borrower with respect to |
22 |
| such loan attributable to the eligible
property as |
23 |
| calculated under the previous sentence. This |
24 |
| subparagraph (M) is exempt from the provisions of |
25 |
| Section 250; |
26 |
| (M-1) For any taxpayer that is a financial |
|
|
|
09600SB2494sam001 |
- 49 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| organization within the
meaning of Section 304(c) of |
2 |
| this Act, an amount included in such total as
interest |
3 |
| income from a loan or loans made by such taxpayer to a |
4 |
| borrower,
to the extent that such a loan is secured by |
5 |
| property which is eligible for
the High Impact Business |
6 |
| Investment Credit. To determine the portion of a
loan |
7 |
| or loans that is secured by property eligible for a |
8 |
| Section 201(h) investment credit to the borrower, the |
9 |
| entire principal amount of
the loan or loans between |
10 |
| the taxpayer and the borrower should be divided into
|
11 |
| the basis of the Section 201(h) investment credit |
12 |
| property which
secures the loan or loans, using for |
13 |
| this purpose the original basis of such
property on the |
14 |
| date that it was placed in service in a federally |
15 |
| designated
Foreign Trade Zone or Sub-Zone located in |
16 |
| Illinois. No taxpayer that is
eligible for the |
17 |
| deduction provided in subparagraph (M) of paragraph |
18 |
| (2) of
this subsection shall be eligible for the |
19 |
| deduction provided under this
subparagraph (M-1). The |
20 |
| subtraction modification available to taxpayers in
any |
21 |
| year under this subsection shall be that portion of the |
22 |
| total interest
paid by the borrower with respect to |
23 |
| such loan attributable to the eligible
property as |
24 |
| calculated under the previous sentence; |
25 |
| (N) Two times any contribution made during the |
26 |
| taxable year to a
designated zone organization to the |
|
|
|
09600SB2494sam001 |
- 50 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| extent that the contribution (i)
qualifies as a |
2 |
| charitable contribution under subsection (c) of |
3 |
| Section 170
of the Internal Revenue Code and (ii) must, |
4 |
| by its terms, be used for a
project approved by the |
5 |
| Department of Commerce and Economic Opportunity under |
6 |
| Section 11 of the Illinois Enterprise Zone Act or under |
7 |
| Section 10-10 of the River Edge Redevelopment Zone Act. |
8 |
| This subparagraph (N) is exempt from the provisions of |
9 |
| Section 250; |
10 |
| (O) An amount equal to: (i) 85% for taxable years |
11 |
| ending on or before
December 31, 1992, or, a percentage |
12 |
| equal to the percentage allowable under
Section |
13 |
| 243(a)(1) of the Internal Revenue Code of 1986 for |
14 |
| taxable years ending
after December 31, 1992, of the |
15 |
| amount by which dividends included in taxable
income |
16 |
| and received from a corporation that is not created or |
17 |
| organized under
the laws of the United States or any |
18 |
| state or political subdivision thereof,
including, for |
19 |
| taxable years ending on or after December 31, 1988, |
20 |
| dividends
received or deemed received or paid or deemed |
21 |
| paid under Sections 951 through
964 of the Internal |
22 |
| Revenue Code, exceed the amount of the modification
|
23 |
| provided under subparagraph (G) of paragraph (2) of |
24 |
| this subsection (b) which
is related to such dividends, |
25 |
| and including, for taxable years ending on or after |
26 |
| December 31, 2008, dividends received from a captive |
|
|
|
09600SB2494sam001 |
- 51 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| real estate investment trust; plus (ii) 100% of the |
2 |
| amount by which dividends,
included in taxable income |
3 |
| and received, including, for taxable years ending on
or |
4 |
| after December 31, 1988, dividends received or deemed |
5 |
| received or paid or
deemed paid under Sections 951 |
6 |
| through 964 of the Internal Revenue Code and including, |
7 |
| for taxable years ending on or after December 31, 2008, |
8 |
| dividends received from a captive real estate |
9 |
| investment trust, from
any such corporation specified |
10 |
| in clause (i) that would but for the provisions
of |
11 |
| Section 1504 (b) (3) of the Internal Revenue Code be |
12 |
| treated as a member of
the affiliated group which |
13 |
| includes the dividend recipient, exceed the amount
of |
14 |
| the modification provided under subparagraph (G) of |
15 |
| paragraph (2) of this
subsection (b) which is related |
16 |
| to such dividends. This subparagraph (O) is exempt from |
17 |
| the provisions of Section 250 of this Act; |
18 |
| (P) An amount equal to any contribution made to a |
19 |
| job training project
established pursuant to the Tax |
20 |
| Increment Allocation Redevelopment Act; |
21 |
| (Q) An amount equal to the amount of the deduction |
22 |
| used to compute the
federal income tax credit for |
23 |
| restoration of substantial amounts held under
claim of |
24 |
| right for the taxable year pursuant to Section 1341 of |
25 |
| the
Internal Revenue Code of 1986; |
26 |
| (R) On and after July 20, 1999, in the case of an |
|
|
|
09600SB2494sam001 |
- 52 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| attorney-in-fact with respect to whom an
interinsurer |
2 |
| or a reciprocal insurer has made the election under |
3 |
| Section 835 of
the Internal Revenue Code, 26 U.S.C. |
4 |
| 835, an amount equal to the excess, if
any, of the |
5 |
| amounts paid or incurred by that interinsurer or |
6 |
| reciprocal insurer
in the taxable year to the |
7 |
| attorney-in-fact over the deduction allowed to that
|
8 |
| interinsurer or reciprocal insurer with respect to the |
9 |
| attorney-in-fact under
Section 835(b) of the Internal |
10 |
| Revenue Code for the taxable year; the provisions of |
11 |
| this subparagraph are exempt from the provisions of |
12 |
| Section 250; |
13 |
| (S) For taxable years ending on or after December |
14 |
| 31, 1997, in the
case of a Subchapter
S corporation, an |
15 |
| amount equal to all amounts of income allocable to a
|
16 |
| shareholder subject to the Personal Property Tax |
17 |
| Replacement Income Tax imposed
by subsections (c) and |
18 |
| (d) of Section 201 of this Act, including amounts
|
19 |
| allocable to organizations exempt from federal income |
20 |
| tax by reason of Section
501(a) of the Internal Revenue |
21 |
| Code. This subparagraph (S) is exempt from
the |
22 |
| provisions of Section 250; |
23 |
| (T) For taxable years 2001 and thereafter, for the |
24 |
| taxable year in
which the bonus depreciation deduction
|
25 |
| is taken on the taxpayer's federal income tax return |
26 |
| under
subsection (k) of Section 168 of the Internal |
|
|
|
09600SB2494sam001 |
- 53 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| Revenue Code and for each
applicable taxable year |
2 |
| thereafter, an amount equal to "x", where: |
3 |
| (1) "y" equals the amount of the depreciation |
4 |
| deduction taken for the
taxable year
on the |
5 |
| taxpayer's federal income tax return on property |
6 |
| for which the bonus
depreciation deduction
was |
7 |
| taken in any year under subsection (k) of Section |
8 |
| 168 of the Internal
Revenue Code, but not including |
9 |
| the bonus depreciation deduction; |
10 |
| (2) for taxable years ending on or before |
11 |
| December 31, 2005, "x" equals "y" multiplied by 30 |
12 |
| and then divided by 70 (or "y"
multiplied by |
13 |
| 0.429); and |
14 |
| (3) for taxable years ending after December |
15 |
| 31, 2005: |
16 |
| (i) for property on which a bonus |
17 |
| depreciation deduction of 30% of the adjusted |
18 |
| basis was taken, "x" equals "y" multiplied by |
19 |
| 30 and then divided by 70 (or "y"
multiplied by |
20 |
| 0.429); and |
21 |
| (ii) for property on which a bonus |
22 |
| depreciation deduction of 50% of the adjusted |
23 |
| basis was taken, "x" equals "y" multiplied by |
24 |
| 1.0. |
25 |
| The aggregate amount deducted under this |
26 |
| subparagraph in all taxable
years for any one piece of |
|
|
|
09600SB2494sam001 |
- 54 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| property may not exceed the amount of the bonus
|
2 |
| depreciation deduction
taken on that property on the |
3 |
| taxpayer's federal income tax return under
subsection |
4 |
| (k) of Section 168 of the Internal Revenue Code. This |
5 |
| subparagraph (T) is exempt from the provisions of |
6 |
| Section 250; |
7 |
| (U) If the taxpayer sells, transfers, abandons, or |
8 |
| otherwise disposes of
property for which the taxpayer |
9 |
| was required in any taxable year to make an
addition |
10 |
| modification under subparagraph (E-10), then an amount |
11 |
| equal to that
addition modification. |
12 |
| If the taxpayer continues to own property through |
13 |
| the last day of the last tax year for which the |
14 |
| taxpayer may claim a depreciation deduction for |
15 |
| federal income tax purposes and for which the taxpayer |
16 |
| was required in any taxable year to make an addition |
17 |
| modification under subparagraph (E-10), then an amount |
18 |
| equal to that addition modification.
|
19 |
| The taxpayer is allowed to take the deduction under |
20 |
| this subparagraph
only once with respect to any one |
21 |
| piece of property. |
22 |
| This subparagraph (U) is exempt from the |
23 |
| provisions of Section 250; |
24 |
| (V) The amount of: (i) any interest income (net of |
25 |
| the deductions allocable thereto) taken into account |
26 |
| for the taxable year with respect to a transaction with |
|
|
|
09600SB2494sam001 |
- 55 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| a taxpayer that is required to make an addition |
2 |
| modification with respect to such transaction under |
3 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-12), |
4 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
5 |
| the amount of such addition modification,
(ii) any |
6 |
| income from intangible property (net of the deductions |
7 |
| allocable thereto) taken into account for the taxable |
8 |
| year with respect to a transaction with a taxpayer that |
9 |
| is required to make an addition modification with |
10 |
| respect to such transaction under Section |
11 |
| 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
12 |
| 203(d)(2)(D-8), but not to exceed the amount of such |
13 |
| addition modification, and (iii) any insurance premium |
14 |
| income (net of deductions allocable thereto) taken |
15 |
| into account for the taxable year with respect to a |
16 |
| transaction with a taxpayer that is required to make an |
17 |
| addition modification with respect to such transaction |
18 |
| under Section 203(a)(2)(D-19), Section |
19 |
| 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section |
20 |
| 203(d)(2)(D-9), but not to exceed the amount of that |
21 |
| addition modification. This subparagraph (V) is exempt |
22 |
| from the provisions of Section 250;
|
23 |
| (W) An amount equal to the interest income taken |
24 |
| into account for the taxable year (net of the |
25 |
| deductions allocable thereto) with respect to |
26 |
| transactions with (i) a foreign person who would be a |
|
|
|
09600SB2494sam001 |
- 56 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| member of the taxpayer's unitary business group but for |
2 |
| the fact that the foreign person's business activity |
3 |
| outside the United States is 80% or more of that |
4 |
| person's total business activity and (ii) for taxable |
5 |
| years ending on or after December 31, 2008, to a person |
6 |
| who would be a member of the same unitary business |
7 |
| group but for the fact that the person is prohibited |
8 |
| under Section 1501(a)(27) from being included in the |
9 |
| unitary business group because he or she is ordinarily |
10 |
| required to apportion business income under different |
11 |
| subsections of Section 304, but not to exceed the |
12 |
| addition modification required to be made for the same |
13 |
| taxable year under Section 203(b)(2)(E-12) for |
14 |
| interest paid, accrued, or incurred, directly or |
15 |
| indirectly, to the same person. This subparagraph (W) |
16 |
| is exempt from the provisions of Section 250; and
|
17 |
| (X) An amount equal to the income from intangible |
18 |
| property taken into account for the taxable year (net |
19 |
| of the deductions allocable thereto) with respect to |
20 |
| transactions with (i) a foreign person who would be a |
21 |
| member of the taxpayer's unitary business group but for |
22 |
| the fact that the foreign person's business activity |
23 |
| outside the United States is 80% or more of that |
24 |
| person's total business activity and (ii) for taxable |
25 |
| years ending on or after December 31, 2008, to a person |
26 |
| who would be a member of the same unitary business |
|
|
|
09600SB2494sam001 |
- 57 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| group but for the fact that the person is prohibited |
2 |
| under Section 1501(a)(27) from being included in the |
3 |
| unitary business group because he or she is ordinarily |
4 |
| required to apportion business income under different |
5 |
| subsections of Section 304, but not to exceed the |
6 |
| addition modification required to be made for the same |
7 |
| taxable year under Section 203(b)(2)(E-13) for |
8 |
| intangible expenses and costs paid, accrued, or |
9 |
| incurred, directly or indirectly, to the same foreign |
10 |
| person. This subparagraph (X) is exempt from the |
11 |
| provisions of Section 250.
|
12 |
| (3) Special rule. For purposes of paragraph (2) (A), |
13 |
| "gross income"
in the case of a life insurance company, for |
14 |
| tax years ending on and after
December 31, 1994,
shall mean |
15 |
| the gross investment income for the taxable year. |
16 |
| (c) Trusts and estates. |
17 |
| (1) In general. In the case of a trust or estate, base |
18 |
| income means
an amount equal to the taxpayer's taxable |
19 |
| income for the taxable year as
modified by paragraph (2). |
20 |
| (2) Modifications. Subject to the provisions of |
21 |
| paragraph (3), the
taxable income referred to in paragraph |
22 |
| (1) shall be modified by adding
thereto the sum of the |
23 |
| following amounts: |
24 |
| (A) An amount equal to all amounts paid or accrued |
25 |
| to the taxpayer
as interest or dividends during the |
|
|
|
09600SB2494sam001 |
- 58 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| taxable year to the extent excluded
from gross income |
2 |
| in the computation of taxable income; |
3 |
| (B) In the case of (i) an estate, $600; (ii) a |
4 |
| trust which, under
its governing instrument, is |
5 |
| required to distribute all of its income
currently, |
6 |
| $300; and (iii) any other trust, $100, but in each such |
7 |
| case,
only to the extent such amount was deducted in |
8 |
| the computation of
taxable income; |
9 |
| (C) An amount equal to the amount of tax imposed by |
10 |
| this Act to the
extent deducted from gross income in |
11 |
| the computation of taxable income
for the taxable year; |
12 |
| (D) The amount of any net operating loss deduction |
13 |
| taken in arriving at
taxable income, other than a net |
14 |
| operating loss carried forward from a
taxable year |
15 |
| ending prior to December 31, 1986; |
16 |
| (E) For taxable years in which a net operating loss |
17 |
| carryback or
carryforward from a taxable year ending |
18 |
| prior to December 31, 1986 is an
element of taxable |
19 |
| income under paragraph (1) of subsection (e) or |
20 |
| subparagraph
(E) of paragraph (2) of subsection (e), |
21 |
| the amount by which addition
modifications other than |
22 |
| those provided by this subparagraph (E) exceeded
|
23 |
| subtraction modifications in such taxable year, with |
24 |
| the following limitations
applied in the order that |
25 |
| they are listed: |
26 |
| (i) the addition modification relating to the |
|
|
|
09600SB2494sam001 |
- 59 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| net operating loss
carried back or forward to the |
2 |
| taxable year from any taxable year ending
prior to |
3 |
| December 31, 1986 shall be reduced by the amount of |
4 |
| addition
modification under this subparagraph (E) |
5 |
| which related to that net
operating loss and which |
6 |
| was taken into account in calculating the base
|
7 |
| income of an earlier taxable year, and |
8 |
| (ii) the addition modification relating to the |
9 |
| net operating loss
carried back or forward to the |
10 |
| taxable year from any taxable year ending
prior to |
11 |
| December 31, 1986 shall not exceed the amount of |
12 |
| such carryback or
carryforward; |
13 |
| For taxable years in which there is a net operating |
14 |
| loss carryback or
carryforward from more than one other |
15 |
| taxable year ending prior to December
31, 1986, the |
16 |
| addition modification provided in this subparagraph |
17 |
| (E) shall
be the sum of the amounts computed |
18 |
| independently under the preceding
provisions of this |
19 |
| subparagraph (E) for each such taxable year; |
20 |
| (F) For taxable years ending on or after January 1, |
21 |
| 1989, an amount
equal to the tax deducted pursuant to |
22 |
| Section 164 of the Internal Revenue
Code if the trust |
23 |
| or estate is claiming the same tax for purposes of the
|
24 |
| Illinois foreign tax credit under Section 601 of this |
25 |
| Act; |
26 |
| (G) An amount equal to the amount of the capital |
|
|
|
09600SB2494sam001 |
- 60 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| gain deduction
allowable under the Internal Revenue |
2 |
| Code, to the extent deducted from
gross income in the |
3 |
| computation of taxable income; |
4 |
| (G-5) For taxable years ending after December 31, |
5 |
| 1997, an
amount equal to any eligible remediation costs |
6 |
| that the trust or estate
deducted in computing adjusted |
7 |
| gross income and for which the trust
or estate claims a |
8 |
| credit under subsection (l) of Section 201; |
9 |
| (G-10) For taxable years 2001 and thereafter, an |
10 |
| amount equal to the
bonus depreciation deduction taken |
11 |
| on the taxpayer's federal income tax return for the |
12 |
| taxable
year under subsection (k) of Section 168 of the |
13 |
| Internal Revenue Code; and |
14 |
| (G-11) If the taxpayer sells, transfers, abandons, |
15 |
| or otherwise disposes of property for which the |
16 |
| taxpayer was required in any taxable year to
make an |
17 |
| addition modification under subparagraph (G-10), then |
18 |
| an amount equal
to the aggregate amount of the |
19 |
| deductions taken in all taxable
years under |
20 |
| subparagraph (R) with respect to that property. |
21 |
| If the taxpayer continues to own property through |
22 |
| the last day of the last tax year for which the |
23 |
| taxpayer may claim a depreciation deduction for |
24 |
| federal income tax purposes and for which the taxpayer |
25 |
| was allowed in any taxable year to make a subtraction |
26 |
| modification under subparagraph (R), then an amount |
|
|
|
09600SB2494sam001 |
- 61 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| equal to that subtraction modification.
|
2 |
| The taxpayer is required to make the addition |
3 |
| modification under this
subparagraph
only once with |
4 |
| respect to any one piece of property; |
5 |
| (G-12) An amount equal to the amount otherwise |
6 |
| allowed as a deduction in computing base income for |
7 |
| interest paid, accrued, or incurred, directly or |
8 |
| indirectly, (i) for taxable years ending on or after |
9 |
| December 31, 2004, to a foreign person who would be a |
10 |
| member of the same unitary business group but for the |
11 |
| fact that the foreign person's business activity |
12 |
| outside the United States is 80% or more of the foreign |
13 |
| person's total business activity and (ii) for taxable |
14 |
| years ending on or after December 31, 2008, to a person |
15 |
| who would be a member of the same unitary business |
16 |
| group but for the fact that the person is prohibited |
17 |
| under Section 1501(a)(27) from being included in the |
18 |
| unitary business group because he or she is ordinarily |
19 |
| required to apportion business income under different |
20 |
| subsections of Section 304. The addition modification |
21 |
| required by this subparagraph shall be reduced to the |
22 |
| extent that dividends were included in base income of |
23 |
| the unitary group for the same taxable year and |
24 |
| received by the taxpayer or by a member of the |
25 |
| taxpayer's unitary business group (including amounts |
26 |
| included in gross income pursuant to Sections 951 |
|
|
|
09600SB2494sam001 |
- 62 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| through 964 of the Internal Revenue Code and amounts |
2 |
| included in gross income under Section 78 of the |
3 |
| Internal Revenue Code) with respect to the stock of the |
4 |
| same person to whom the interest was paid, accrued, or |
5 |
| incurred.
|
6 |
| This paragraph shall not apply to the following:
|
7 |
| (i) an item of interest paid, accrued, or |
8 |
| incurred, directly or indirectly, to a person who |
9 |
| is subject in a foreign country or state, other |
10 |
| than a state which requires mandatory unitary |
11 |
| reporting, to a tax on or measured by net income |
12 |
| with respect to such interest; or |
13 |
| (ii) an item of interest paid, accrued, or |
14 |
| incurred, directly or indirectly, to a person if |
15 |
| the taxpayer can establish, based on a |
16 |
| preponderance of the evidence, both of the |
17 |
| following: |
18 |
| (a) the person, during the same taxable |
19 |
| year, paid, accrued, or incurred, the interest |
20 |
| to a person that is not a related member, and |
21 |
| (b) the transaction giving rise to the |
22 |
| interest expense between the taxpayer and the |
23 |
| person did not have as a principal purpose the |
24 |
| avoidance of Illinois income tax, and is paid |
25 |
| pursuant to a contract or agreement that |
26 |
| reflects an arm's-length interest rate and |
|
|
|
09600SB2494sam001 |
- 63 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| terms; or
|
2 |
| (iii) the taxpayer can establish, based on |
3 |
| clear and convincing evidence, that the interest |
4 |
| paid, accrued, or incurred relates to a contract or |
5 |
| agreement entered into at arm's-length rates and |
6 |
| terms and the principal purpose for the payment is |
7 |
| not federal or Illinois tax avoidance; or
|
8 |
| (iv) an item of interest paid, accrued, or |
9 |
| incurred, directly or indirectly, to a person if |
10 |
| the taxpayer establishes by clear and convincing |
11 |
| evidence that the adjustments are unreasonable; or |
12 |
| if the taxpayer and the Director agree in writing |
13 |
| to the application or use of an alternative method |
14 |
| of apportionment under Section 304(f).
|
15 |
| Nothing in this subsection shall preclude the |
16 |
| Director from making any other adjustment |
17 |
| otherwise allowed under Section 404 of this Act for |
18 |
| any tax year beginning after the effective date of |
19 |
| this amendment provided such adjustment is made |
20 |
| pursuant to regulation adopted by the Department |
21 |
| and such regulations provide methods and standards |
22 |
| by which the Department will utilize its authority |
23 |
| under Section 404 of this Act;
|
24 |
| (G-13) An amount equal to the amount of intangible |
25 |
| expenses and costs otherwise allowed as a deduction in |
26 |
| computing base income, and that were paid, accrued, or |
|
|
|
09600SB2494sam001 |
- 64 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| incurred, directly or indirectly, (i) for taxable |
2 |
| years ending on or after December 31, 2004, to a |
3 |
| foreign person who would be a member of the same |
4 |
| unitary business group but for the fact that the |
5 |
| foreign person's business activity outside the United |
6 |
| States is 80% or more of that person's total business |
7 |
| activity and (ii) for taxable years ending on or after |
8 |
| December 31, 2008, to a person who would be a member of |
9 |
| the same unitary business group but for the fact that |
10 |
| the person is prohibited under Section 1501(a)(27) |
11 |
| from being included in the unitary business group |
12 |
| because he or she is ordinarily required to apportion |
13 |
| business income under different subsections of Section |
14 |
| 304. The addition modification required by this |
15 |
| subparagraph shall be reduced to the extent that |
16 |
| dividends were included in base income of the unitary |
17 |
| group for the same taxable year and received by the |
18 |
| taxpayer or by a member of the taxpayer's unitary |
19 |
| business group (including amounts included in gross |
20 |
| income pursuant to Sections 951 through 964 of the |
21 |
| Internal Revenue Code and amounts included in gross |
22 |
| income under Section 78 of the Internal Revenue Code) |
23 |
| with respect to the stock of the same person to whom |
24 |
| the intangible expenses and costs were directly or |
25 |
| indirectly paid, incurred, or accrued. The preceding |
26 |
| sentence shall not apply to the extent that the same |
|
|
|
09600SB2494sam001 |
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LRB096 15388 NHT 36734 a |
|
|
1 |
| dividends caused a reduction to the addition |
2 |
| modification required under Section 203(c)(2)(G-12) of |
3 |
| this Act. As used in this subparagraph, the term |
4 |
| "intangible expenses and costs" includes: (1) |
5 |
| expenses, losses, and costs for or related to the |
6 |
| direct or indirect acquisition, use, maintenance or |
7 |
| management, ownership, sale, exchange, or any other |
8 |
| disposition of intangible property; (2) losses |
9 |
| incurred, directly or indirectly, from factoring |
10 |
| transactions or discounting transactions; (3) royalty, |
11 |
| patent, technical, and copyright fees; (4) licensing |
12 |
| fees; and (5) other similar expenses and costs. For |
13 |
| purposes of this subparagraph, "intangible property" |
14 |
| includes patents, patent applications, trade names, |
15 |
| trademarks, service marks, copyrights, mask works, |
16 |
| trade secrets, and similar types of intangible assets. |
17 |
| This paragraph shall not apply to the following: |
18 |
| (i) any item of intangible expenses or costs |
19 |
| paid, accrued, or incurred, directly or |
20 |
| indirectly, from a transaction with a person who is |
21 |
| subject in a foreign country or state, other than a |
22 |
| state which requires mandatory unitary reporting, |
23 |
| to a tax on or measured by net income with respect |
24 |
| to such item; or |
25 |
| (ii) any item of intangible expense or cost |
26 |
| paid, accrued, or incurred, directly or |
|
|
|
09600SB2494sam001 |
- 66 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| indirectly, if the taxpayer can establish, based |
2 |
| on a preponderance of the evidence, both of the |
3 |
| following: |
4 |
| (a) the person during the same taxable |
5 |
| year paid, accrued, or incurred, the |
6 |
| intangible expense or cost to a person that is |
7 |
| not a related member, and |
8 |
| (b) the transaction giving rise to the |
9 |
| intangible expense or cost between the |
10 |
| taxpayer and the person did not have as a |
11 |
| principal purpose the avoidance of Illinois |
12 |
| income tax, and is paid pursuant to a contract |
13 |
| or agreement that reflects arm's-length terms; |
14 |
| or |
15 |
| (iii) any item of intangible expense or cost |
16 |
| paid, accrued, or incurred, directly or |
17 |
| indirectly, from a transaction with a person if the |
18 |
| taxpayer establishes by clear and convincing |
19 |
| evidence, that the adjustments are unreasonable; |
20 |
| or if the taxpayer and the Director agree in |
21 |
| writing to the application or use of an alternative |
22 |
| method of apportionment under Section 304(f);
|
23 |
| Nothing in this subsection shall preclude the |
24 |
| Director from making any other adjustment |
25 |
| otherwise allowed under Section 404 of this Act for |
26 |
| any tax year beginning after the effective date of |
|
|
|
09600SB2494sam001 |
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LRB096 15388 NHT 36734 a |
|
|
1 |
| this amendment provided such adjustment is made |
2 |
| pursuant to regulation adopted by the Department |
3 |
| and such regulations provide methods and standards |
4 |
| by which the Department will utilize its authority |
5 |
| under Section 404 of this Act;
|
6 |
| (G-14) For taxable years ending on or after |
7 |
| December 31, 2008, an amount equal to the amount of |
8 |
| insurance premium expenses and costs otherwise allowed |
9 |
| as a deduction in computing base income, and that were |
10 |
| paid, accrued, or incurred, directly or indirectly, to |
11 |
| a person who would be a member of the same unitary |
12 |
| business group but for the fact that the person is |
13 |
| prohibited under Section 1501(a)(27) from being |
14 |
| included in the unitary business group because he or |
15 |
| she is ordinarily required to apportion business |
16 |
| income under different subsections of Section 304. The |
17 |
| addition modification required by this subparagraph |
18 |
| shall be reduced to the extent that dividends were |
19 |
| included in base income of the unitary group for the |
20 |
| same taxable year and received by the taxpayer or by a |
21 |
| member of the taxpayer's unitary business group |
22 |
| (including amounts included in gross income under |
23 |
| Sections 951 through 964 of the Internal Revenue Code |
24 |
| and amounts included in gross income under Section 78 |
25 |
| of the Internal Revenue Code) with respect to the stock |
26 |
| of the same person to whom the premiums and costs were |
|
|
|
09600SB2494sam001 |
- 68 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| directly or indirectly paid, incurred, or accrued. The |
2 |
| preceding sentence does not apply to the extent that |
3 |
| the same dividends caused a reduction to the addition |
4 |
| modification required under Section 203(c)(2)(G-12) or |
5 |
| Section 203(c)(2)(G-13) of this Act; |
6 |
| (G-15) An amount equal to the credit allowable to |
7 |
| the taxpayer under Section 218(a) of this Act, |
8 |
| determined without regard to Section 218(c) of this |
9 |
| Act; |
10 |
| and by deducting from the total so obtained the sum of the |
11 |
| following
amounts: |
12 |
| (H) An amount equal to all amounts included in such |
13 |
| total pursuant
to the provisions of Sections 402(a), |
14 |
| 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the |
15 |
| Internal Revenue Code or included in such total as
|
16 |
| distributions under the provisions of any retirement |
17 |
| or disability plan for
employees of any governmental |
18 |
| agency or unit, or retirement payments to
retired |
19 |
| partners, which payments are excluded in computing net |
20 |
| earnings
from self employment by Section 1402 of the |
21 |
| Internal Revenue Code and
regulations adopted pursuant |
22 |
| thereto; |
23 |
| (I) The valuation limitation amount; |
24 |
| (J) An amount equal to the amount of any tax |
25 |
| imposed by this Act
which was refunded to the taxpayer |
26 |
| and included in such total for the
taxable year; |
|
|
|
09600SB2494sam001 |
- 69 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| (K) An amount equal to all amounts included in |
2 |
| taxable income as
modified by subparagraphs (A), (B), |
3 |
| (C), (D), (E), (F) and (G) which
are exempt from |
4 |
| taxation by this State either by reason of its statutes |
5 |
| or
Constitution
or by reason of the Constitution, |
6 |
| treaties or statutes of the United States;
provided |
7 |
| that, in the case of any statute of this State that |
8 |
| exempts income
derived from bonds or other obligations |
9 |
| from the tax imposed under this Act,
the amount |
10 |
| exempted shall be the interest net of bond premium |
11 |
| amortization; |
12 |
| (L) With the exception of any amounts subtracted |
13 |
| under subparagraph
(K),
an amount equal to the sum of |
14 |
| all amounts disallowed as
deductions by (i) Sections |
15 |
| 171(a) (2) and 265(a)(2) of the Internal Revenue
Code, |
16 |
| as now or hereafter amended, and all amounts of |
17 |
| expenses allocable
to interest and disallowed as |
18 |
| deductions by Section 265(1) of the Internal
Revenue |
19 |
| Code of 1954, as now or hereafter amended;
and (ii) for |
20 |
| taxable years
ending on or after August 13, 1999, |
21 |
| Sections
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of |
22 |
| the Internal Revenue Code; the provisions of this
|
23 |
| subparagraph are exempt from the provisions of Section |
24 |
| 250; |
25 |
| (M) An amount equal to those dividends included in |
26 |
| such total
which were paid by a corporation which |
|
|
|
09600SB2494sam001 |
- 70 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| conducts business operations in an
Enterprise Zone or |
2 |
| zones created under the Illinois Enterprise Zone Act or |
3 |
| a River Edge Redevelopment Zone or zones created under |
4 |
| the River Edge Redevelopment Zone Act and
conducts |
5 |
| substantially all of its operations in an Enterprise |
6 |
| Zone or Zones or a River Edge Redevelopment Zone or |
7 |
| zones. This subparagraph (M) is exempt from the |
8 |
| provisions of Section 250; |
9 |
| (N) An amount equal to any contribution made to a |
10 |
| job training
project established pursuant to the Tax |
11 |
| Increment Allocation
Redevelopment Act; |
12 |
| (O) An amount equal to those dividends included in |
13 |
| such total
that were paid by a corporation that |
14 |
| conducts business operations in a
federally designated |
15 |
| Foreign Trade Zone or Sub-Zone and that is designated
a |
16 |
| High Impact Business located in Illinois; provided |
17 |
| that dividends eligible
for the deduction provided in |
18 |
| subparagraph (M) of paragraph (2) of this
subsection |
19 |
| shall not be eligible for the deduction provided under |
20 |
| this
subparagraph (O); |
21 |
| (P) An amount equal to the amount of the deduction |
22 |
| used to compute the
federal income tax credit for |
23 |
| restoration of substantial amounts held under
claim of |
24 |
| right for the taxable year pursuant to Section 1341 of |
25 |
| the
Internal Revenue Code of 1986; |
26 |
| (Q) For taxable year 1999 and thereafter, an amount |
|
|
|
09600SB2494sam001 |
- 71 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| equal to the
amount of any
(i) distributions, to the |
2 |
| extent includible in gross income for
federal income |
3 |
| tax purposes, made to the taxpayer because of
his or |
4 |
| her status as a victim of
persecution for racial or |
5 |
| religious reasons by Nazi Germany or any other Axis
|
6 |
| regime or as an heir of the victim and (ii) items
of |
7 |
| income, to the extent
includible in gross income for |
8 |
| federal income tax purposes, attributable to,
derived |
9 |
| from or in any way related to assets stolen from, |
10 |
| hidden from, or
otherwise lost to a victim of
|
11 |
| persecution for racial or religious reasons by Nazi
|
12 |
| Germany or any other Axis regime
immediately prior to, |
13 |
| during, and immediately after World War II, including,
|
14 |
| but
not limited to, interest on the proceeds receivable |
15 |
| as insurance
under policies issued to a victim of |
16 |
| persecution for racial or religious
reasons by Nazi |
17 |
| Germany or any other Axis regime by European insurance
|
18 |
| companies
immediately prior to and during World War II;
|
19 |
| provided, however, this subtraction from federal |
20 |
| adjusted gross income does not
apply to assets acquired |
21 |
| with such assets or with the proceeds from the sale of
|
22 |
| such assets; provided, further, this paragraph shall |
23 |
| only apply to a taxpayer
who was the first recipient of |
24 |
| such assets after their recovery and who is a
victim of
|
25 |
| persecution for racial or religious reasons
by Nazi |
26 |
| Germany or any other Axis regime or as an heir of the |
|
|
|
09600SB2494sam001 |
- 72 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| victim. The
amount of and the eligibility for any |
2 |
| public assistance, benefit, or
similar entitlement is |
3 |
| not affected by the inclusion of items (i) and (ii) of
|
4 |
| this paragraph in gross income for federal income tax |
5 |
| purposes.
This paragraph is exempt from the provisions |
6 |
| of Section 250; |
7 |
| (R) For taxable years 2001 and thereafter, for the |
8 |
| taxable year in
which the bonus depreciation deduction
|
9 |
| is taken on the taxpayer's federal income tax return |
10 |
| under
subsection (k) of Section 168 of the Internal |
11 |
| Revenue Code and for each
applicable taxable year |
12 |
| thereafter, an amount equal to "x", where: |
13 |
| (1) "y" equals the amount of the depreciation |
14 |
| deduction taken for the
taxable year
on the |
15 |
| taxpayer's federal income tax return on property |
16 |
| for which the bonus
depreciation deduction
was |
17 |
| taken in any year under subsection (k) of Section |
18 |
| 168 of the Internal
Revenue Code, but not including |
19 |
| the bonus depreciation deduction; |
20 |
| (2) for taxable years ending on or before |
21 |
| December 31, 2005, "x" equals "y" multiplied by 30 |
22 |
| and then divided by 70 (or "y"
multiplied by |
23 |
| 0.429); and |
24 |
| (3) for taxable years ending after December |
25 |
| 31, 2005: |
26 |
| (i) for property on which a bonus |
|
|
|
09600SB2494sam001 |
- 73 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| depreciation deduction of 30% of the adjusted |
2 |
| basis was taken, "x" equals "y" multiplied by |
3 |
| 30 and then divided by 70 (or "y"
multiplied by |
4 |
| 0.429); and |
5 |
| (ii) for property on which a bonus |
6 |
| depreciation deduction of 50% of the adjusted |
7 |
| basis was taken, "x" equals "y" multiplied by |
8 |
| 1.0. |
9 |
| The aggregate amount deducted under this |
10 |
| subparagraph in all taxable
years for any one piece of |
11 |
| property may not exceed the amount of the bonus
|
12 |
| depreciation deduction
taken on that property on the |
13 |
| taxpayer's federal income tax return under
subsection |
14 |
| (k) of Section 168 of the Internal Revenue Code. This |
15 |
| subparagraph (R) is exempt from the provisions of |
16 |
| Section 250; |
17 |
| (S) If the taxpayer sells, transfers, abandons, or |
18 |
| otherwise disposes of
property for which the taxpayer |
19 |
| was required in any taxable year to make an
addition |
20 |
| modification under subparagraph (G-10), then an amount |
21 |
| equal to that
addition modification. |
22 |
| If the taxpayer continues to own property through |
23 |
| the last day of the last tax year for which the |
24 |
| taxpayer may claim a depreciation deduction for |
25 |
| federal income tax purposes and for which the taxpayer |
26 |
| was required in any taxable year to make an addition |
|
|
|
09600SB2494sam001 |
- 74 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| modification under subparagraph (G-10), then an amount |
2 |
| equal to that addition modification.
|
3 |
| The taxpayer is allowed to take the deduction under |
4 |
| this subparagraph
only once with respect to any one |
5 |
| piece of property. |
6 |
| This subparagraph (S) is exempt from the |
7 |
| provisions of Section 250; |
8 |
| (T) The amount of (i) any interest income (net of |
9 |
| the deductions allocable thereto) taken into account |
10 |
| for the taxable year with respect to a transaction with |
11 |
| a taxpayer that is required to make an addition |
12 |
| modification with respect to such transaction under |
13 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-12), |
14 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
15 |
| the amount of such addition modification and
(ii) any |
16 |
| income from intangible property (net of the deductions |
17 |
| allocable thereto) taken into account for the taxable |
18 |
| year with respect to a transaction with a taxpayer that |
19 |
| is required to make an addition modification with |
20 |
| respect to such transaction under Section |
21 |
| 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
22 |
| 203(d)(2)(D-8), but not to exceed the amount of such |
23 |
| addition modification. This subparagraph (T) is exempt |
24 |
| from the provisions of Section 250;
|
25 |
| (U) An amount equal to the interest income taken |
26 |
| into account for the taxable year (net of the |
|
|
|
09600SB2494sam001 |
- 75 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| deductions allocable thereto) with respect to |
2 |
| transactions with (i) a foreign person who would be a |
3 |
| member of the taxpayer's unitary business group but for |
4 |
| the fact the foreign person's business activity |
5 |
| outside the United States is 80% or more of that |
6 |
| person's total business activity and (ii) for taxable |
7 |
| years ending on or after December 31, 2008, to a person |
8 |
| who would be a member of the same unitary business |
9 |
| group but for the fact that the person is prohibited |
10 |
| under Section 1501(a)(27) from being included in the |
11 |
| unitary business group because he or she is ordinarily |
12 |
| required to apportion business income under different |
13 |
| subsections of Section 304, but not to exceed the |
14 |
| addition modification required to be made for the same |
15 |
| taxable year under Section 203(c)(2)(G-12) for |
16 |
| interest paid, accrued, or incurred, directly or |
17 |
| indirectly, to the same person. This subparagraph (U) |
18 |
| is exempt from the provisions of Section 250; and |
19 |
| (V) An amount equal to the income from intangible |
20 |
| property taken into account for the taxable year (net |
21 |
| of the deductions allocable thereto) with respect to |
22 |
| transactions with (i) a foreign person who would be a |
23 |
| member of the taxpayer's unitary business group but for |
24 |
| the fact that the foreign person's business activity |
25 |
| outside the United States is 80% or more of that |
26 |
| person's total business activity and (ii) for taxable |
|
|
|
09600SB2494sam001 |
- 76 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| years ending on or after December 31, 2008, to a person |
2 |
| who would be a member of the same unitary business |
3 |
| group but for the fact that the person is prohibited |
4 |
| under Section 1501(a)(27) from being included in the |
5 |
| unitary business group because he or she is ordinarily |
6 |
| required to apportion business income under different |
7 |
| subsections of Section 304, but not to exceed the |
8 |
| addition modification required to be made for the same |
9 |
| taxable year under Section 203(c)(2)(G-13) for |
10 |
| intangible expenses and costs paid, accrued, or |
11 |
| incurred, directly or indirectly, to the same foreign |
12 |
| person. This subparagraph (V) 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 set
|
19 |
| aside for charitable purposes pursuant to Internal Revenue |
20 |
| 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 in |
|
|
|
09600SB2494sam001 |
- 77 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| paragraph (1)
shall be modified by adding thereto the sum |
2 |
| of the following amounts: |
3 |
| (A) An amount equal to all amounts paid or accrued |
4 |
| to the taxpayer as
interest or dividends during the |
5 |
| taxable year to the extent excluded from
gross income |
6 |
| in the computation of taxable income; |
7 |
| (B) An amount equal to the amount of tax imposed by |
8 |
| this Act to the
extent deducted from gross income for |
9 |
| the taxable year; |
10 |
| (C) The amount of deductions allowed to the |
11 |
| partnership pursuant to
Section 707 (c) of the Internal |
12 |
| Revenue Code in calculating its taxable income; |
13 |
| (D) An amount equal to the amount of the capital |
14 |
| gain deduction
allowable under the Internal Revenue |
15 |
| Code, to the extent deducted from
gross income in the |
16 |
| computation of taxable income; |
17 |
| (D-5) For taxable years 2001 and thereafter, an |
18 |
| amount equal to the
bonus depreciation deduction taken |
19 |
| on the taxpayer's federal income tax return for the |
20 |
| taxable
year under subsection (k) of Section 168 of the |
21 |
| Internal Revenue Code; |
22 |
| (D-6) If the taxpayer sells, transfers, abandons, |
23 |
| or otherwise disposes of
property for which the |
24 |
| taxpayer was required in any taxable year to make an
|
25 |
| addition modification under subparagraph (D-5), then |
26 |
| an amount equal to the
aggregate amount of the |
|
|
|
09600SB2494sam001 |
- 78 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| deductions taken in all taxable years
under |
2 |
| subparagraph (O) with respect to that property. |
3 |
| If the taxpayer continues to own property through |
4 |
| the last day of the last tax year for which the |
5 |
| taxpayer may claim a depreciation deduction for |
6 |
| federal income tax purposes and for which the taxpayer |
7 |
| was allowed in any taxable year to make a subtraction |
8 |
| modification under subparagraph (O), then an amount |
9 |
| equal to that subtraction modification.
|
10 |
| The taxpayer is required to make the addition |
11 |
| modification under this
subparagraph
only once with |
12 |
| respect to any one piece of property; |
13 |
| (D-7) An amount equal to the amount otherwise |
14 |
| allowed as a deduction in computing base income for |
15 |
| interest paid, accrued, or incurred, directly or |
16 |
| indirectly, (i) for taxable years ending on or after |
17 |
| December 31, 2004, to a foreign person who would be a |
18 |
| member of the same unitary business group but for the |
19 |
| fact the foreign person's business activity outside |
20 |
| the United States is 80% or more of the foreign |
21 |
| person's total business activity and (ii) for taxable |
22 |
| years ending on or after December 31, 2008, to a person |
23 |
| who would be a member of the same unitary business |
24 |
| group but for the fact that the person is prohibited |
25 |
| under Section 1501(a)(27) from being included in the |
26 |
| unitary business group because he or she is ordinarily |
|
|
|
09600SB2494sam001 |
- 79 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| required to apportion business income under different |
2 |
| subsections of Section 304. The addition modification |
3 |
| required by this subparagraph shall be reduced to the |
4 |
| extent that dividends were included in base income of |
5 |
| the unitary group for the same taxable year and |
6 |
| received by the taxpayer or by a member of the |
7 |
| taxpayer's unitary business group (including amounts |
8 |
| included in gross income pursuant to Sections 951 |
9 |
| through 964 of the Internal Revenue Code and amounts |
10 |
| included in gross income under Section 78 of the |
11 |
| Internal Revenue Code) with respect to the stock of the |
12 |
| same person to whom the interest was paid, accrued, or |
13 |
| incurred.
|
14 |
| This paragraph shall not apply to the following:
|
15 |
| (i) an item of interest paid, accrued, or |
16 |
| incurred, directly or indirectly, to a person who |
17 |
| is subject in a foreign country or state, other |
18 |
| than a state which requires mandatory unitary |
19 |
| reporting, to a tax on or measured by net income |
20 |
| with respect to such interest; or |
21 |
| (ii) an item of interest paid, accrued, or |
22 |
| incurred, directly or indirectly, to a person if |
23 |
| the taxpayer can establish, based on a |
24 |
| preponderance of the evidence, both of the |
25 |
| following: |
26 |
| (a) the person, during the same taxable |
|
|
|
09600SB2494sam001 |
- 80 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| year, paid, accrued, or incurred, the interest |
2 |
| to a person that is not a related member, and |
3 |
| (b) the transaction giving rise to the |
4 |
| interest expense between the taxpayer and the |
5 |
| person did not have as a principal purpose the |
6 |
| avoidance of Illinois income tax, and is paid |
7 |
| pursuant to a contract or agreement that |
8 |
| reflects an arm's-length interest rate and |
9 |
| terms; or
|
10 |
| (iii) the taxpayer can establish, based on |
11 |
| clear and convincing evidence, that the interest |
12 |
| paid, accrued, or incurred relates to a contract or |
13 |
| agreement entered into at arm's-length rates and |
14 |
| terms and the principal purpose for the payment is |
15 |
| not federal or Illinois tax avoidance; or
|
16 |
| (iv) an item of interest paid, accrued, or |
17 |
| incurred, directly or indirectly, to a person if |
18 |
| the taxpayer establishes by clear and convincing |
19 |
| evidence that the adjustments are unreasonable; or |
20 |
| if the taxpayer and the Director agree in writing |
21 |
| to the application or use of an alternative method |
22 |
| of apportionment under Section 304(f).
|
23 |
| Nothing in this subsection shall preclude the |
24 |
| Director from making any other adjustment |
25 |
| otherwise allowed under Section 404 of this Act for |
26 |
| any tax year beginning after the effective date of |
|
|
|
09600SB2494sam001 |
- 81 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| this amendment provided such adjustment is made |
2 |
| pursuant to regulation adopted by the Department |
3 |
| and such regulations provide methods and standards |
4 |
| by which the Department will utilize its authority |
5 |
| under Section 404 of this Act; and
|
6 |
| (D-8) An amount equal to the amount of intangible |
7 |
| expenses and costs otherwise allowed as a deduction in |
8 |
| computing base income, and that were paid, accrued, or |
9 |
| incurred, directly or indirectly, (i) for taxable |
10 |
| years ending on or after December 31, 2004, to a |
11 |
| foreign person who would be a member of the same |
12 |
| unitary business group but for the fact that the |
13 |
| foreign person's business activity outside the United |
14 |
| States is 80% or more of that person's total business |
15 |
| activity and (ii) for taxable years ending on or after |
16 |
| December 31, 2008, to a person who would be a member of |
17 |
| the same unitary business group but for the fact that |
18 |
| the person is prohibited under Section 1501(a)(27) |
19 |
| from being included in the unitary business group |
20 |
| because he or she is ordinarily required to apportion |
21 |
| business income under different subsections of Section |
22 |
| 304. The addition modification required by this |
23 |
| subparagraph shall be reduced to the extent that |
24 |
| dividends were included in base income of the unitary |
25 |
| group for the same taxable year and received by the |
26 |
| taxpayer or by a member of the taxpayer's unitary |
|
|
|
09600SB2494sam001 |
- 82 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| business group (including amounts included in gross |
2 |
| income pursuant to Sections 951 through 964 of the |
3 |
| Internal Revenue Code and amounts included in gross |
4 |
| income under Section 78 of the Internal Revenue Code) |
5 |
| with respect to the stock of the same person to whom |
6 |
| the intangible expenses and costs were directly or |
7 |
| indirectly paid, incurred or accrued. The preceding |
8 |
| sentence shall not apply to the extent that the same |
9 |
| dividends caused a reduction to the addition |
10 |
| modification required under Section 203(d)(2)(D-7) of |
11 |
| this Act. As used in this subparagraph, the term |
12 |
| "intangible expenses and costs" includes (1) expenses, |
13 |
| losses, and costs for, or related to, the direct or |
14 |
| indirect acquisition, use, maintenance or management, |
15 |
| ownership, sale, exchange, or any other disposition of |
16 |
| intangible property; (2) losses incurred, directly or |
17 |
| indirectly, from factoring transactions or discounting |
18 |
| transactions; (3) royalty, patent, technical, and |
19 |
| copyright fees; (4) licensing fees; and (5) other |
20 |
| similar expenses and costs. For purposes of this |
21 |
| subparagraph, "intangible property" includes patents, |
22 |
| patent applications, trade names, trademarks, service |
23 |
| marks, copyrights, mask works, trade secrets, and |
24 |
| similar types of intangible assets; |
25 |
| This paragraph shall not apply to the following: |
26 |
| (i) any item of intangible expenses or costs |
|
|
|
09600SB2494sam001 |
- 83 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| paid, accrued, or incurred, directly or |
2 |
| indirectly, from a transaction with a person who is |
3 |
| subject in a foreign country or state, other than a |
4 |
| state which requires mandatory unitary reporting, |
5 |
| to a tax on or measured by net income with respect |
6 |
| to such item; or |
7 |
| (ii) any item of intangible expense or cost |
8 |
| paid, accrued, or incurred, directly or |
9 |
| indirectly, if the taxpayer can establish, based |
10 |
| on a preponderance of the evidence, both of the |
11 |
| following: |
12 |
| (a) the person during the same taxable |
13 |
| year paid, accrued, or incurred, the |
14 |
| intangible expense or cost to a person that is |
15 |
| not a related member, and |
16 |
| (b) the transaction giving rise to the |
17 |
| intangible expense or cost between the |
18 |
| taxpayer and the person did not have as a |
19 |
| principal purpose the avoidance of Illinois |
20 |
| income tax, and is paid pursuant to a contract |
21 |
| or agreement that reflects arm's-length terms; |
22 |
| or |
23 |
| (iii) any item of intangible expense or cost |
24 |
| paid, accrued, or incurred, directly or |
25 |
| indirectly, from a transaction with a person if the |
26 |
| taxpayer establishes by clear and convincing |
|
|
|
09600SB2494sam001 |
- 84 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| evidence, that the adjustments are unreasonable; |
2 |
| or if the taxpayer and the Director agree in |
3 |
| writing to the application or use of an alternative |
4 |
| method of apportionment under Section 304(f);
|
5 |
| Nothing in this subsection shall preclude the |
6 |
| Director from making any other adjustment |
7 |
| otherwise allowed under Section 404 of this Act for |
8 |
| any tax year beginning after the effective date of |
9 |
| this amendment provided such adjustment is made |
10 |
| pursuant to regulation adopted by the Department |
11 |
| and such regulations provide methods and standards |
12 |
| by which the Department will utilize its authority |
13 |
| under Section 404 of this Act;
|
14 |
| (D-9) For taxable years ending on or after December |
15 |
| 31, 2008, an amount equal to the amount of insurance |
16 |
| premium expenses and costs otherwise allowed as a |
17 |
| deduction in computing base income, and that were paid, |
18 |
| accrued, or incurred, directly or indirectly, to a |
19 |
| person who would be a member of the same unitary |
20 |
| business group but for the fact that the person is |
21 |
| prohibited under Section 1501(a)(27) from being |
22 |
| included in the unitary business group because he or |
23 |
| she is ordinarily required to apportion business |
24 |
| income under different subsections of Section 304. The |
25 |
| addition modification required by this subparagraph |
26 |
| shall be reduced to the extent that dividends were |
|
|
|
09600SB2494sam001 |
- 85 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| included in base income of the unitary group for the |
2 |
| same taxable year and received by the taxpayer or by a |
3 |
| member of the taxpayer's unitary business group |
4 |
| (including amounts included in gross income under |
5 |
| Sections 951 through 964 of the Internal Revenue Code |
6 |
| and amounts included in gross income under Section 78 |
7 |
| of the Internal Revenue Code) with respect to the stock |
8 |
| of the same person to whom the premiums and costs were |
9 |
| directly or indirectly paid, incurred, or accrued. The |
10 |
| preceding sentence does not apply to the extent that |
11 |
| the same dividends caused a reduction to the addition |
12 |
| modification required under Section 203(d)(2)(D-7) or |
13 |
| Section 203(d)(2)(D-8) of this Act; |
14 |
| (D-10) An amount equal to the credit allowable to |
15 |
| the taxpayer under Section 218(a) of this Act, |
16 |
| determined without regard to Section 218(c) of this |
17 |
| Act; |
18 |
| and by deducting from the total so obtained the following |
19 |
| amounts: |
20 |
| (E) The valuation limitation amount; |
21 |
| (F) An amount equal to the amount of any tax |
22 |
| imposed by this Act which
was refunded to the taxpayer |
23 |
| and included in such total for the taxable year; |
24 |
| (G) An amount equal to all amounts included in |
25 |
| taxable income as
modified by subparagraphs (A), (B), |
26 |
| (C) and (D) which are exempt from
taxation by this |
|
|
|
09600SB2494sam001 |
- 86 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| State either by reason of its statutes or Constitution |
2 |
| or
by reason of
the Constitution, treaties or statutes |
3 |
| of the United States;
provided that, in the case of any |
4 |
| statute of this State that exempts income
derived from |
5 |
| bonds or other obligations from the tax imposed under |
6 |
| this Act,
the amount exempted shall be the interest net |
7 |
| of bond premium amortization; |
8 |
| (H) Any income of the partnership which |
9 |
| constitutes personal service
income as defined in |
10 |
| Section 1348 (b) (1) of the Internal Revenue Code (as
|
11 |
| in effect December 31, 1981) or a reasonable allowance |
12 |
| for compensation
paid or accrued for services rendered |
13 |
| by partners to the partnership,
whichever is greater; |
14 |
| (I) An amount equal to all amounts of income |
15 |
| distributable to an entity
subject to the Personal |
16 |
| Property Tax Replacement Income Tax imposed by
|
17 |
| subsections (c) and (d) of Section 201 of this Act |
18 |
| including amounts
distributable to organizations |
19 |
| exempt from federal income tax by reason of
Section |
20 |
| 501(a) of the Internal Revenue Code, provided that the |
21 |
| deduction under this subparagraph (I) shall not be |
22 |
| allowed to a publicly traded partnership under Section |
23 |
| 7704 of the Internal Revenue Code for any taxable year |
24 |
| ending on or after December 31, 2009; |
25 |
| (J) With the exception of any amounts subtracted |
26 |
| under subparagraph
(G),
an amount equal to the sum of |
|
|
|
09600SB2494sam001 |
- 87 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| all amounts disallowed as deductions
by (i) Sections |
2 |
| 171(a) (2), and 265(2) of the Internal Revenue Code of |
3 |
| 1954,
as now or hereafter amended, and all amounts of |
4 |
| expenses allocable to
interest and disallowed as |
5 |
| deductions by Section 265(1) of the Internal
Revenue |
6 |
| Code, as now or hereafter amended;
and (ii) for taxable |
7 |
| years
ending on or after August 13, 1999, Sections
|
8 |
| 171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the |
9 |
| Internal Revenue Code; the provisions of this
|
10 |
| subparagraph are exempt from the provisions of Section |
11 |
| 250; |
12 |
| (K) An amount equal to those dividends included in |
13 |
| such total which were
paid by a corporation which |
14 |
| conducts business operations in an Enterprise
Zone or |
15 |
| zones created under the Illinois Enterprise Zone Act, |
16 |
| enacted by
the 82nd General Assembly, or a River Edge |
17 |
| Redevelopment Zone or zones created under the River |
18 |
| Edge Redevelopment Zone Act and
conducts substantially |
19 |
| all of its operations
in an Enterprise Zone or Zones or |
20 |
| from a River Edge Redevelopment Zone or zones. This |
21 |
| subparagraph (K) is exempt from the provisions of |
22 |
| Section 250; |
23 |
| (L) An amount equal to any contribution made to a |
24 |
| job training project
established pursuant to the Real |
25 |
| Property Tax Increment Allocation
Redevelopment Act; |
26 |
| (M) An amount equal to those dividends included in |
|
|
|
09600SB2494sam001 |
- 88 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| such total
that were paid by a corporation that |
2 |
| conducts business operations in a
federally designated |
3 |
| Foreign Trade Zone or Sub-Zone and that is designated a
|
4 |
| High Impact Business located in Illinois; provided |
5 |
| that dividends eligible
for the deduction provided in |
6 |
| subparagraph (K) of paragraph (2) of this
subsection |
7 |
| shall not be eligible for the deduction provided under |
8 |
| this
subparagraph (M); |
9 |
| (N) An amount equal to the amount of the deduction |
10 |
| used to compute the
federal income tax credit for |
11 |
| restoration of substantial amounts held under
claim of |
12 |
| right for the taxable year pursuant to Section 1341 of |
13 |
| the
Internal Revenue Code of 1986; |
14 |
| (O) For taxable years 2001 and thereafter, for the |
15 |
| taxable year in
which the bonus depreciation deduction
|
16 |
| is taken on the taxpayer's federal income tax return |
17 |
| under
subsection (k) of Section 168 of the Internal |
18 |
| Revenue Code and for each
applicable taxable year |
19 |
| thereafter, an amount equal to "x", where: |
20 |
| (1) "y" equals the amount of the depreciation |
21 |
| deduction taken for the
taxable year
on the |
22 |
| taxpayer's federal income tax return on property |
23 |
| for which the bonus
depreciation deduction
was |
24 |
| taken in any year under subsection (k) of Section |
25 |
| 168 of the Internal
Revenue Code, but not including |
26 |
| the bonus depreciation deduction; |
|
|
|
09600SB2494sam001 |
- 89 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| (2) for taxable years ending on or before |
2 |
| December 31, 2005, "x" equals "y" multiplied by 30 |
3 |
| and then divided by 70 (or "y"
multiplied by |
4 |
| 0.429); and |
5 |
| (3) for taxable years ending after December |
6 |
| 31, 2005: |
7 |
| (i) for property on which a bonus |
8 |
| depreciation deduction of 30% of the adjusted |
9 |
| basis was taken, "x" equals "y" multiplied by |
10 |
| 30 and then divided by 70 (or "y"
multiplied by |
11 |
| 0.429); and |
12 |
| (ii) for property on which a bonus |
13 |
| depreciation deduction of 50% of the adjusted |
14 |
| basis was taken, "x" equals "y" multiplied by |
15 |
| 1.0. |
16 |
| The aggregate amount deducted under this |
17 |
| subparagraph in all taxable
years for any one piece of |
18 |
| property may not exceed the amount of the bonus
|
19 |
| depreciation deduction
taken on that property on the |
20 |
| taxpayer's federal income tax return under
subsection |
21 |
| (k) of Section 168 of the Internal Revenue Code. This |
22 |
| subparagraph (O) is exempt from the provisions of |
23 |
| Section 250; |
24 |
| (P) If the taxpayer sells, transfers, abandons, or |
25 |
| otherwise disposes of
property for which the taxpayer |
26 |
| was required in any taxable year to make an
addition |
|
|
|
09600SB2494sam001 |
- 90 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| modification under subparagraph (D-5), then an amount |
2 |
| equal to that
addition modification. |
3 |
| If the taxpayer continues to own property through |
4 |
| the last day of the last tax year for which the |
5 |
| taxpayer may claim a depreciation deduction for |
6 |
| federal income tax purposes and for which the taxpayer |
7 |
| was required in any taxable year to make an addition |
8 |
| modification under subparagraph (D-5), then an amount |
9 |
| equal to that addition modification.
|
10 |
| The taxpayer is allowed to take the deduction under |
11 |
| this subparagraph
only once with respect to any one |
12 |
| piece of property. |
13 |
| This subparagraph (P) is exempt from the |
14 |
| provisions of Section 250; |
15 |
| (Q) The amount of (i) any interest income (net of |
16 |
| the deductions allocable thereto) taken into account |
17 |
| for the taxable year with respect to a transaction with |
18 |
| a taxpayer that is required to make an addition |
19 |
| modification with respect to such transaction under |
20 |
| Section 203(a)(2)(D-17), 203(b)(2)(E-12), |
21 |
| 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
22 |
| the amount of such addition modification and
(ii) any |
23 |
| income from intangible property (net of the deductions |
24 |
| allocable thereto) taken into account for the taxable |
25 |
| year with respect to a transaction with a taxpayer that |
26 |
| is required to make an addition modification with |
|
|
|
09600SB2494sam001 |
- 91 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| respect to such transaction under Section |
2 |
| 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or |
3 |
| 203(d)(2)(D-8), but not to exceed the amount of such |
4 |
| addition modification. This subparagraph (Q) is exempt |
5 |
| from Section 250;
|
6 |
| (R) An amount equal to the interest income taken |
7 |
| into account for the taxable year (net of the |
8 |
| deductions allocable thereto) with respect to |
9 |
| transactions with (i) a foreign person who would be a |
10 |
| member of the taxpayer's unitary business group but for |
11 |
| the fact that the foreign person's business activity |
12 |
| outside the United States is 80% or more of that |
13 |
| person's total business activity and (ii) for taxable |
14 |
| years ending on or after December 31, 2008, to a person |
15 |
| who would be a member of the same unitary business |
16 |
| group but for the fact that the person is prohibited |
17 |
| under Section 1501(a)(27) from being included in the |
18 |
| unitary business group because he or she is ordinarily |
19 |
| required to apportion business income under different |
20 |
| subsections of Section 304, but not to exceed the |
21 |
| addition modification required to be made for the same |
22 |
| taxable year under Section 203(d)(2)(D-7) for interest |
23 |
| paid, accrued, or incurred, directly or indirectly, to |
24 |
| the same person. This subparagraph (R) is exempt from |
25 |
| Section 250; and |
26 |
| (S) An amount equal to the income from intangible |
|
|
|
09600SB2494sam001 |
- 92 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| property taken into account for the taxable year (net |
2 |
| of the deductions allocable thereto) with respect to |
3 |
| transactions with (i) a foreign person who would be a |
4 |
| member of the taxpayer's unitary business group but for |
5 |
| the fact that the foreign person's business activity |
6 |
| outside the United States is 80% or more of that |
7 |
| person's total business activity and (ii) for taxable |
8 |
| years ending on or after December 31, 2008, to a person |
9 |
| who would be a member of the same unitary business |
10 |
| group but for the fact that the person is prohibited |
11 |
| under Section 1501(a)(27) from being included in the |
12 |
| unitary business group because he or she is ordinarily |
13 |
| required to apportion business income under different |
14 |
| subsections of Section 304, but not to exceed the |
15 |
| addition modification required to be made for the same |
16 |
| taxable year under Section 203(d)(2)(D-8) for |
17 |
| intangible expenses and costs paid, accrued, or |
18 |
| incurred, directly or indirectly, to the same person. |
19 |
| This subparagraph (S) is exempt from Section 250.
|
20 |
| (e) Gross income; adjusted gross income; taxable income. |
21 |
| (1) In general. Subject to the provisions of paragraph |
22 |
| (2) and
subsection (b) (3), for purposes of this Section |
23 |
| and Section 803(e), a
taxpayer's gross income, adjusted |
24 |
| gross income, or taxable income for
the taxable year shall |
25 |
| mean the amount of gross income, adjusted gross
income or |
|
|
|
09600SB2494sam001 |
- 93 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| taxable income properly reportable for federal income tax
|
2 |
| purposes for the taxable year under the provisions of the |
3 |
| Internal
Revenue Code. Taxable income may be less than |
4 |
| zero. However, for taxable
years ending on or after |
5 |
| December 31, 1986, net operating loss
carryforwards from |
6 |
| taxable years ending prior to December 31, 1986, may not
|
7 |
| exceed the sum of federal taxable income for the taxable |
8 |
| year before net
operating loss deduction, plus the excess |
9 |
| of addition modifications over
subtraction modifications |
10 |
| for the taxable year. For taxable years ending
prior to |
11 |
| December 31, 1986, taxable income may never be an amount in |
12 |
| excess
of the net operating loss for the taxable year as |
13 |
| defined in subsections
(c) and (d) of Section 172 of the |
14 |
| Internal Revenue Code, provided that when
taxable income of |
15 |
| a corporation (other than a Subchapter S corporation),
|
16 |
| trust, or estate is less than zero and addition |
17 |
| modifications, other than
those provided by subparagraph |
18 |
| (E) of paragraph (2) of subsection (b) for
corporations or |
19 |
| subparagraph (E) of paragraph (2) of subsection (c) for
|
20 |
| trusts and estates, exceed subtraction modifications, an |
21 |
| addition
modification must be made under those |
22 |
| subparagraphs for any other taxable
year to which the |
23 |
| taxable income less than zero (net operating loss) is
|
24 |
| applied under Section 172 of the Internal Revenue Code or |
25 |
| under
subparagraph (E) of paragraph (2) of this subsection |
26 |
| (e) applied in
conjunction with Section 172 of the Internal |
|
|
|
09600SB2494sam001 |
- 94 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| Revenue Code. |
2 |
| (2) Special rule. For purposes of paragraph (1) of this |
3 |
| subsection,
the taxable income properly reportable for |
4 |
| federal income tax purposes
shall mean: |
5 |
| (A) Certain life insurance companies. In the case |
6 |
| of a life
insurance company subject to the tax imposed |
7 |
| by Section 801 of the
Internal Revenue Code, life |
8 |
| insurance company taxable income, plus the
amount of |
9 |
| distribution from pre-1984 policyholder surplus |
10 |
| accounts as
calculated under Section 815a of the |
11 |
| Internal Revenue Code; |
12 |
| (B) Certain other insurance companies. In the case |
13 |
| of mutual
insurance companies subject to the tax |
14 |
| imposed by Section 831 of the
Internal Revenue Code, |
15 |
| insurance company taxable income; |
16 |
| (C) Regulated investment companies. In the case of |
17 |
| a regulated
investment company subject to the tax |
18 |
| imposed by Section 852 of the
Internal Revenue Code, |
19 |
| investment company taxable income; |
20 |
| (D) Real estate investment trusts. In the case of a |
21 |
| real estate
investment trust subject to the tax imposed |
22 |
| by Section 857 of the
Internal Revenue Code, real |
23 |
| estate investment trust taxable income; |
24 |
| (E) Consolidated corporations. In the case of a |
25 |
| corporation which
is a member of an affiliated group of |
26 |
| corporations filing a consolidated
income tax return |
|
|
|
09600SB2494sam001 |
- 95 - |
LRB096 15388 NHT 36734 a |
|
|
1 |
| for the taxable year for federal income tax purposes,
|
2 |
| taxable income determined as if such corporation had |
3 |
| filed a separate
return for federal income tax purposes |
4 |
| for the taxable year and each
preceding taxable year |
5 |
| for which it was a member of an affiliated group.
For |
6 |
| purposes of this subparagraph, the taxpayer's separate |
7 |
| taxable
income shall be determined as if the election |
8 |
| provided by Section
243(b) (2) of the Internal Revenue |
9 |
| Code had been in effect for all such years; |
10 |
| (F) Cooperatives. In the case of a cooperative |
11 |
| corporation or
association, the taxable income of such |
12 |
| organization determined in
accordance with the |
13 |
| provisions of Section 1381 through 1388 of the
Internal |
14 |
| Revenue Code; |
15 |
| (G) Subchapter S corporations. In the case of: (i) |
16 |
| a Subchapter S
corporation for which there is in effect |
17 |
| an election for the taxable year
under Section 1362 of |
18 |
| the Internal Revenue Code, the taxable income of such
|
19 |
| corporation determined in accordance with Section |
20 |
| 1363(b) of the Internal
Revenue Code, except that |
21 |
| taxable income shall take into
account those items |
22 |
| which are required by Section 1363(b)(1) of the
|
23 |
| Internal Revenue Code to be separately stated; and (ii) |
24 |
| a Subchapter
S corporation for which there is in effect |
25 |
| a federal election to opt out of
the provisions of the |
26 |
| Subchapter S Revision Act of 1982 and have applied
|
|
|
|
09600SB2494sam001 |
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LRB096 15388 NHT 36734 a |
|
|
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
federal |
4 |
| Subchapter S rules as in effect on July 1, 1982; and |
5 |
| (H) Partnerships. In the case of a partnership, |
6 |
| taxable income
determined in accordance with Section |
7 |
| 703 of the Internal Revenue Code,
except that taxable |
8 |
| income shall take into account those items which are
|
9 |
| required by Section 703(a)(1) to be separately stated |
10 |
| but which would be
taken into account by an individual |
11 |
| in calculating his taxable income. |
12 |
| (3) Recapture of business expenses on disposition of |
13 |
| asset or business. Notwithstanding any other law to the |
14 |
| contrary, if in prior years income from an asset or |
15 |
| business has been classified as business income and in a |
16 |
| later year is demonstrated to be non-business income, then |
17 |
| all expenses, without limitation, deducted in such later |
18 |
| year and in the 2 immediately preceding taxable years |
19 |
| related to that asset or business that generated the |
20 |
| non-business income shall be added back and recaptured as |
21 |
| business income in the year of the disposition of the asset |
22 |
| or business. Such amount shall be apportioned to Illinois |
23 |
| using the greater of the apportionment fraction computed |
24 |
| for the business under Section 304 of this Act for the |
25 |
| taxable year or the average of the apportionment fractions |
26 |
| computed for the business under Section 304 of this Act for |
|
|
|
09600SB2494sam001 |
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LRB096 15388 NHT 36734 a |
|
|
1 |
| the taxable year and for the 2 immediately preceding |
2 |
| taxable years.
|
3 |
| (f) Valuation limitation amount. |
4 |
| (1) In general. The valuation limitation amount |
5 |
| referred to in
subsections (a) (2) (G), (c) (2) (I) and |
6 |
| (d)(2) (E) is an amount equal to: |
7 |
| (A) The sum of the pre-August 1, 1969 appreciation |
8 |
| amounts (to the
extent consisting of gain reportable |
9 |
| under the provisions of Section
1245 or 1250 of the |
10 |
| Internal Revenue Code) for all property in respect
of |
11 |
| which such gain was reported for the taxable year; plus |
12 |
| (B) The lesser of (i) the sum of the pre-August 1, |
13 |
| 1969 appreciation
amounts (to the extent consisting of |
14 |
| capital gain) for all property in
respect of which such |
15 |
| gain was reported for federal income tax purposes
for |
16 |
| the taxable year, or (ii) the net capital gain for the |
17 |
| taxable year,
reduced in either case by any amount of |
18 |
| such gain included in the amount
determined under |
19 |
| subsection (a) (2) (F) or (c) (2) (H). |
20 |
| (2) Pre-August 1, 1969 appreciation amount. |
21 |
| (A) If the fair market value of property referred |
22 |
| to in paragraph
(1) was readily ascertainable on August |
23 |
| 1, 1969, the pre-August 1, 1969
appreciation amount for |
24 |
| such property is the lesser of (i) the excess of
such |
25 |
| fair market value over the taxpayer's basis (for |
|
|
|
09600SB2494sam001 |
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LRB096 15388 NHT 36734 a |
|
|
1 |
| determining gain)
for such property on that date |
2 |
| (determined under the Internal Revenue
Code as in |
3 |
| effect on that date), or (ii) the total gain realized |
4 |
| and
reportable for federal income tax purposes in |
5 |
| respect of the sale,
exchange or other disposition of |
6 |
| such property. |
7 |
| (B) If the fair market value of property referred |
8 |
| to in paragraph
(1) was not readily ascertainable on |
9 |
| August 1, 1969, the pre-August 1,
1969 appreciation |
10 |
| amount for such property is that amount which bears
the |
11 |
| same ratio to the total gain reported in respect of the |
12 |
| property for
federal income tax purposes for the |
13 |
| taxable year, as the number of full
calendar months in |
14 |
| that part of the taxpayer's holding period for the
|
15 |
| property ending July 31, 1969 bears to the number of |
16 |
| full calendar
months in the taxpayer's entire holding |
17 |
| period for the
property. |
18 |
| (C) The Department shall prescribe such |
19 |
| regulations as may be
necessary to carry out the |
20 |
| purposes of this paragraph. |
21 |
| (g) Double deductions. Unless specifically provided |
22 |
| otherwise, nothing
in this Section shall permit the same item |
23 |
| to be deducted more than once. |
24 |
| (h) Legislative intention. Except as expressly provided by |
|
|
|
09600SB2494sam001 |
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LRB096 15388 NHT 36734 a |
|
|
1 |
| this
Section there shall be no modifications or limitations on |
2 |
| the amounts
of income, gain, loss or deduction taken into |
3 |
| account in determining
gross income, adjusted gross income or |
4 |
| taxable income for federal income
tax purposes for the taxable |
5 |
| year, or in the amount of such items
entering into the |
6 |
| computation of base income and net income under this
Act for |
7 |
| such taxable year, whether in respect of property values as of
|
8 |
| August 1, 1969 or otherwise. |
9 |
| (Source: P.A. 95-23, eff. 8-3-07; 95-233, eff. 8-16-07; 95-286, |
10 |
| eff. 8-20-07; 95-331, eff. 8-21-07; 95-707, eff. 1-11-08; |
11 |
| 95-876, eff. 8-21-08; 96-45, eff. 7-15-09; 96-120, eff. 8-4-09; |
12 |
| 96-198, eff. 8-10-09; 96-328, eff. 8-11-09; 96-520, eff. |
13 |
| 8-14-09; 96-835, eff. 12-16-09.)".
|