Illinois General Assembly - Illinois Compiled Statutes

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35 ILCS 5/205

(35 ILCS 5/205) (from Ch. 120, par. 2-205)

Sec. 205. Exempt organizations.

(a) Charitable, etc. organizations. For tax years beginning before January 1, 2019, the base income of an
organization which is exempt from the federal income tax by reason of the Internal Revenue Code shall not be determined
under section 203 of this Act, but shall be its unrelated business
taxable income as determined under section 512 of the Internal Revenue
Code, without any deduction for the tax imposed by this Act. The
standard exemption provided by section 204 of this Act shall not be
allowed in determining the net income of an organization to which this
subsection applies.

For tax years beginning on or after January 1, 2019, the base income of an organization which is exempt from the federal income tax by reason of the Internal Revenue Code shall not be determined under Section 203 of this Act, but shall be its unrelated business taxable income as determined under Section 512 of the Internal Revenue Code, without regard to Section 512(a)(7) of the Internal Revenue Code and without any deduction for the tax imposed by this Act. The standard exemption provided by Section 204 of this Act shall not be allowed in determining the net income of an organization to which this subsection applies. This exclusion is exempt from the provisions of Section 250.

(b) Partnerships.  A partnership as such shall not be subject to
the tax imposed by subsection 201 (a) and (b) of this Act, but shall be
subject to the replacement tax imposed by subsection 201 (c) and (d) of
this Act and shall compute its base income as described in subsection (d)
of Section 203 of this Act.  For taxable years ending on or after December 31, 2004, an investment partnership, as defined in Section 1501(a)(11.5) of this Act, shall not be subject to the tax imposed by subsections (c) and (d) of Section 201 of this Act.
A partnership shall file such returns and other
information at such
time and in such manner as may be required under Article 5 of this Act.
The partners in a partnership shall be liable for the replacement tax imposed
by subsection 201 (c) and (d) of this Act on such partnership, to the extent
such tax is not paid by the partnership, as provided under the laws of Illinois
governing the liability of partners for the obligations of a partnership.
Persons carrying on business as partners shall be liable for the tax
imposed by subsection 201 (a) and (b) of this Act only in their separate
or individual capacities.

(c) Subchapter S corporations. A Subchapter S corporation shall not
be subject to the tax imposed by subsection 201 (a) and
(b) of this Act but shall be subject to the replacement tax imposed by subsection
201 (c) and (d) of this Act and shall file such returns
and other information
at such time and in such manner as may be required under Article 5 of this Act.

(d) Combat zone, terrorist attack, and certain other deaths. An individual relieved from the federal
income tax for any taxable year by reason of section 692 of the Internal
Revenue Code shall not be subject to the tax imposed by this Act for
such taxable year.

(e) Certain trusts. A common trust fund described in Section 584
of the Internal Revenue Code, and any other trust to the extent that the
grantor is treated as the owner thereof under sections 671 through 678
of the Internal Revenue Code shall not be subject to the tax imposed by
this Act.

(f) Certain business activities. A person not otherwise subject to the tax
imposed by this Act shall not become subject to the tax imposed by this Act by
reason of:

(1) that person's ownership of tangible personal

property located at the premises of a printer in this State with which the person has contracted for printing, or

(2) activities of the person's employees or agents

located solely at the premises of a printer and related to quality control, distribution, or printing services performed by a printer in the State with which the person has contracted for printing.

(g) A nonprofit risk organization that holds a certificate of authority under Article VIID of the Illinois Insurance Code is exempt from the tax imposed under this Act with respect to its activities or operations in furtherance of the powers conferred upon it under that Article VIID of the Illinois Insurance Code.

(Source: P.A. 101-545, eff. 8-23-19.)