HB4454ham001 95TH GENERAL ASSEMBLY

Revenue Committee

Filed: 2/22/2008

09500HB4454ham001 LRB095 16946 BDD 45858 a

AMENDMENT TO HOUSE BILL 4454

AMENDMENT NO. ______. Amend House Bill 4454 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Income Tax Act is amended by changing Section 404 as follows:

(35 ILCS 5/404) (from Ch. 120, par. 4-404)

Sec. 404. Reallocation of Items.

(a) If it appears to the Director that any agreement, understanding or arrangement exists between any persons which causes any person's base income allocable to this State to be improperly or inaccurately reflected, the Director may adjust such items of income and deduction, and any factor taken into account in allocating non-business income to this State, to such extent as may reasonably be required to determine the base income of such person properly allocable to this State. Unless the principal purpose of the agreement, understanding, or arrangement is for the avoidance of federal or State income tax, any adjustment under this Section must be made in accordance with Section 482 of the Internal Revenue Code, as amended, and any applicable federal regulations.

(b) In making an adjustment under this Section for any taxable year, the Director must apply the provisions of this Act in the manner in which they were in effect during that taxable year, unless otherwise specifically authorized by statute.

(c) Notwithstanding any other rulemaking authority that may exist, neither the Governor nor any agency or agency head under the jurisdiction of the Governor has any authority to make or promulgate rules to implement or enforce the provisions of this amendatory Act of the 95th General Assembly. If, however, the Governor believes that rules are necessary to implement or enforce the provisions of this amendatory Act of the 95th General Assembly, the Governor may suggest rules to the General Assembly by filing them with the Clerk of the House and Secretary of the Senate and by requesting that the General Assembly authorize such rulemaking by law, enact those suggested rules into law, or take any other appropriate action in the General Assembly's discretion. Nothing contained in this amendatory Act of the 95th General Assembly shall be interpreted to grant rulemaking authority under any other Illinois statute where such authority is not otherwise explicitly given. For the purposes of this subsection, "rules" is given the meaning contained in Section 1-70 of the Illinois Administrative Procedure Act, and "agency" and "agency head" are given the meanings contained in Sections 1-20 and 1-25 of the Illinois Administrative Procedure Act to the extent that such definitions apply to agencies or agency heads under the jurisdiction of the Governor.

(Source: P.A. 76-261.)

Section 99. Effective date. This Act takes effect upon becoming law.".