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Public Act 91-0676
HB1120 Enrolled LRB9100524PTpkA
AN ACT concerning victims of Nazi persecution.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
changing Section 203 as follows:
(35 ILCS 5/203) (from Ch. 120, par. 2-203)
Sec. 203. Base income defined.
(a) Individuals.
(1) In general. In the case of an individual, base
income means an amount equal to the taxpayer's adjusted
gross income for the taxable year as modified by
paragraph (2).
(2) Modifications. The adjusted gross income
referred to in paragraph (1) shall be modified by adding
thereto the sum of the following amounts:
(A) An amount equal to all amounts paid or
accrued to the taxpayer as interest or dividends
during the taxable year to the extent excluded from
gross income in the computation of adjusted gross
income, except stock dividends of qualified public
utilities described in Section 305(e) of the
Internal Revenue Code;
(B) An amount equal to the amount of tax
imposed by this Act to the extent deducted from
gross income in the computation of adjusted gross
income for the taxable year;
(C) An amount equal to the amount received
during the taxable year as a recovery or refund of
real property taxes paid with respect to the
taxpayer's principal residence under the Revenue Act
of 1939 and for which a deduction was previously
taken under subparagraph (L) of this paragraph (2)
prior to July 1, 1991, the retrospective application
date of Article 4 of Public Act 87-17. In the case
of multi-unit or multi-use structures and farm
dwellings, the taxes on the taxpayer's principal
residence shall be that portion of the total taxes
for the entire property which is attributable to
such principal residence;
(D) An amount equal to the amount of the
capital gain deduction allowable under the Internal
Revenue Code, to the extent deducted from gross
income in the computation of adjusted gross income;
(D-5) An amount, to the extent not included in
adjusted gross income, equal to the amount of money
withdrawn by the taxpayer in the taxable year from a
medical care savings account and the interest earned
on the account in the taxable year of a withdrawal
pursuant to subsection (b) of Section 20 of the
Medical Care Savings Account Act; and
(D-10) For taxable years ending after December
31, 1997, an amount equal to any eligible
remediation costs that the individual deducted in
computing adjusted gross income and for which the
individual claims a credit under subsection (l) of
Section 201;
and by deducting from the total so obtained the sum of
the following amounts:
(E) Any amount included in such total in
respect of any compensation (including but not
limited to any compensation paid or accrued to a
serviceman while a prisoner of war or missing in
action) paid to a resident by reason of being on
active duty in the Armed Forces of the United States
and in respect of any compensation paid or accrued
to a resident who as a governmental employee was a
prisoner of war or missing in action, and in respect
of any compensation paid to a resident in 1971 or
thereafter for annual training performed pursuant to
Sections 502 and 503, Title 32, United States Code
as a member of the Illinois National Guard;
(F) An amount equal to all amounts included in
such total pursuant to the provisions of Sections
402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
408 of the Internal Revenue Code, or included in
such total as distributions under the provisions of
any retirement or disability plan for employees of
any governmental agency or unit, or retirement
payments to retired partners, which payments are
excluded in computing net earnings from self
employment by Section 1402 of the Internal Revenue
Code and regulations adopted pursuant thereto;
(G) The valuation limitation amount;
(H) An amount equal to the amount of any tax
imposed by this Act which was refunded to the
taxpayer and included in such total for the taxable
year;
(I) An amount equal to all amounts included in
such total pursuant to the provisions of Section 111
of the Internal Revenue Code as a recovery of items
previously deducted from adjusted gross income in
the computation of taxable income;
(J) An amount equal to those dividends
included in such total which were paid by a
corporation which conducts business operations in an
Enterprise Zone or zones created under the Illinois
Enterprise Zone Act, and conducts substantially all
of its operations in an Enterprise Zone or zones;
(K) An amount equal to those dividends
included in such total that were paid by a
corporation that conducts business operations in a
federally designated Foreign Trade Zone or Sub-Zone
and that is designated a High Impact Business
located in Illinois; provided that dividends
eligible for the deduction provided in subparagraph
(J) of paragraph (2) of this subsection shall not be
eligible for the deduction provided under this
subparagraph (K);
(L) For taxable years ending after December
31, 1983, an amount equal to all social security
benefits and railroad retirement benefits included
in such total pursuant to Sections 72(r) and 86 of
the Internal Revenue Code;
(M) With the exception of any amounts
subtracted under subparagraph (N), an amount equal
to the sum of all amounts disallowed as deductions
by Sections 171(a) (2), and 265(2) of the Internal
Revenue Code of 1954, as now or hereafter amended,
and all amounts of expenses allocable to interest
and disallowed as deductions by Section 265(1) of
the Internal Revenue Code of 1954, as now or
hereafter amended;
(N) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or
Constitution or by reason of the Constitution,
treaties or statutes of the United States; provided
that, in the case of any statute of this State that
exempts income derived from bonds or other
obligations from the tax imposed under this Act, the
amount exempted shall be the interest net of bond
premium amortization;
(O) An amount equal to any contribution made
to a job training project established pursuant to
the Tax Increment Allocation Redevelopment Act;
(P) An amount equal to the amount of the
deduction used to compute the federal income tax
credit for restoration of substantial amounts held
under claim of right for the taxable year pursuant
to Section 1341 of the Internal Revenue Code of
1986;
(Q) An amount equal to any amounts included in
such total, received by the taxpayer as an
acceleration in the payment of life, endowment or
annuity benefits in advance of the time they would
otherwise be payable as an indemnity for a terminal
illness;
(R) An amount equal to the amount of any
federal or State bonus paid to veterans of the
Persian Gulf War;
(S) An amount, to the extent included in
adjusted gross income, equal to the amount of a
contribution made in the taxable year on behalf of
the taxpayer to a medical care savings account
established under the Medical Care Savings Account
Act to the extent the contribution is accepted by
the account administrator as provided in that Act;
(T) An amount, to the extent included in
adjusted gross income, equal to the amount of
interest earned in the taxable year on a medical
care savings account established under the Medical
Care Savings Account Act on behalf of the taxpayer,
other than interest added pursuant to item (D-5) of
this paragraph (2);
(U) For one taxable year beginning on or after
January 1, 1994, an amount equal to the total amount
of tax imposed and paid under subsections (a) and
(b) of Section 201 of this Act on grant amounts
received by the taxpayer under the Nursing Home
Grant Assistance Act during the taxpayer's taxable
years 1992 and 1993;
(V) Beginning with tax years ending on or
after December 31, 1995 and ending with tax years
ending on or before December 31, 1999, an amount
equal to the amount paid by a taxpayer who is a
self-employed taxpayer, a partner of a partnership,
or a shareholder in a Subchapter S corporation for
health insurance or long-term care insurance for
that taxpayer or that taxpayer's spouse or
dependents, to the extent that the amount paid for
that health insurance or long-term care insurance
may be deducted under Section 213 of the Internal
Revenue Code of 1986, has not been deducted on the
federal income tax return of the taxpayer, and does
not exceed the taxable income attributable to that
taxpayer's income, self-employment income, or
Subchapter S corporation income; except that no
deduction shall be allowed under this item (V) if
the taxpayer is eligible to participate in any
health insurance or long-term care insurance plan of
an employer of the taxpayer or the taxpayer's
spouse. The amount of the health insurance and
long-term care insurance subtracted under this item
(V) shall be determined by multiplying total health
insurance and long-term care insurance premiums paid
by the taxpayer times a number that represents the
fractional percentage of eligible medical expenses
under Section 213 of the Internal Revenue Code of
1986 not actually deducted on the taxpayer's federal
income tax return; and
(W) For taxable years beginning on or after
January 1, 1998, all amounts included in the
taxpayer's federal gross income in the taxable year
from amounts converted from a regular IRA to a Roth
IRA. This paragraph is exempt from the provisions of
Section 250; and.
(X) For taxable year 1999 and thereafter, an
amount equal to the amount of any (i) distributions,
to the extent includible in gross income for federal
income tax purposes, made to the taxpayer because of
his or her status as a victim of persecution for
racial or religious reasons by Nazi Germany or any
other Axis regime or as an heir of the victim and
(ii) items of income, to the extent includible in
gross income for federal income tax purposes,
attributable to, derived from or in any way related
to assets stolen from, hidden from, or otherwise
lost to a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime immediately prior to, during, and immediately
after World War II, including, but not limited to,
interest on the proceeds receivable as insurance
under policies issued to a victim of persecution for
racial or religious reasons by Nazi Germany or any
other Axis regime by European insurance companies
immediately prior to and during World War II;
provided, however, this subtraction from federal
adjusted gross income does not apply to assets
acquired with such assets or with the proceeds from
the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the
first recipient of such assets after their recovery
and who is a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim. The amount of
and the eligibility for any public assistance,
benefit, or similar entitlement is not affected by
the inclusion of items (i) and (ii) of this
paragraph in gross income for federal income tax
purposes. This paragraph is exempt from the
provisions of Section 250.
(b) Corporations.
(1) In general. In the case of a corporation, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to
in paragraph (1) shall be modified by adding thereto the
sum of the following amounts:
(A) An amount equal to all amounts paid or
accrued to the taxpayer as interest and all
distributions received from regulated investment
companies during the taxable year to the extent
excluded from gross income in the computation of
taxable income;
(B) An amount equal to the amount of tax
imposed by this Act to the extent deducted from
gross income in the computation of taxable income
for the taxable year;
(C) In the case of a regulated investment
company, an amount equal to the excess of (i) the
net long-term capital gain for the taxable year,
over (ii) the amount of the capital gain dividends
designated as such in accordance with Section
852(b)(3)(C) of the Internal Revenue Code and any
amount designated under Section 852(b)(3)(D) of the
Internal Revenue Code, attributable to the taxable
year. (this amendatory Act of 1995 (Public Act
89-89) is declarative of existing law and is not a
new enactment);.
(D) The amount of any net operating loss
deduction taken in arriving at taxable income, other
than a net operating loss carried forward from a
taxable year ending prior to December 31, 1986; and
(E) For taxable years in which a net operating
loss carryback or carryforward from a taxable year
ending prior to December 31, 1986 is an element of
taxable income under paragraph (1) of subsection (e)
or subparagraph (E) of paragraph (2) of subsection
(e), the amount by which addition modifications
other than those provided by this subparagraph (E)
exceeded subtraction modifications in such earlier
taxable year, with the following limitations applied
in the order that they are listed:
(i) the addition modification relating to
the net operating loss carried back or forward
to the taxable year from any taxable year
ending prior to December 31, 1986 shall be
reduced by the amount of addition modification
under this subparagraph (E) which related to
that net operating loss and which was taken
into account in calculating the base income of
an earlier taxable year, and
(ii) the addition modification relating
to the net operating loss carried back or
forward to the taxable year from any taxable
year ending prior to December 31, 1986 shall
not exceed the amount of such carryback or
carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding
provisions of this subparagraph (E) for each such
taxable year;, and
(E-5) For taxable years ending after December
31, 1997, an amount equal to any eligible
remediation costs that the corporation deducted in
computing adjusted gross income and for which the
corporation claims a credit under subsection (l) of
Section 201;
and by deducting from the total so obtained the sum of
the following amounts:
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the
taxpayer and included in such total for the taxable
year;
(G) An amount equal to any amount included in
such total under Section 78 of the Internal Revenue
Code;
(H) In the case of a regulated investment
company, an amount equal to the amount of exempt
interest dividends as defined in subsection (b) (5)
of Section 852 of the Internal Revenue Code, paid to
shareholders for the taxable year;
(I) With the exception of any amounts
subtracted under subparagraph (J), an amount equal
to the sum of all amounts disallowed as deductions
by Sections 171(a) (2), and 265(a)(2) and amounts
disallowed as interest expense by Section 291(a)(3)
of the Internal Revenue Code, as now or hereafter
amended, and all amounts of expenses allocable to
interest and disallowed as deductions by Section
265(a)(1) of the Internal Revenue Code, as now or
hereafter amended;
(J) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or
Constitution or by reason of the Constitution,
treaties or statutes of the United States; provided
that, in the case of any statute of this State that
exempts income derived from bonds or other
obligations from the tax imposed under this Act, the
amount exempted shall be the interest net of bond
premium amortization;
(K) An amount equal to those dividends
included in such total which were paid by a
corporation which conducts business operations in an
Enterprise Zone or zones created under the Illinois
Enterprise Zone Act and conducts substantially all
of its operations in an Enterprise Zone or zones;
(L) An amount equal to those dividends
included in such total that were paid by a
corporation that conducts business operations in a
federally designated Foreign Trade Zone or Sub-Zone
and that is designated a High Impact Business
located in Illinois; provided that dividends
eligible for the deduction provided in subparagraph
(K) of paragraph 2 of this subsection shall not be
eligible for the deduction provided under this
subparagraph (L);
(M) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as
interest income from a loan or loans made by such
taxpayer to a borrower, to the extent that such a
loan is secured by property which is eligible for
the Enterprise Zone Investment Credit. To determine
the portion of a loan or loans that is secured by
property eligible for a Section 201(h) investment
credit to the borrower, the entire principal amount
of the loan or loans between the taxpayer and the
borrower should be divided into the basis of the
Section 201(h) investment credit property which
secures the loan or loans, using for this purpose
the original basis of such property on the date that
it was placed in service in the Enterprise Zone.
The subtraction modification available to taxpayer
in any year under this subsection shall be that
portion of the total interest paid by the borrower
with respect to such loan attributable to the
eligible property as calculated under the previous
sentence;
(M-1) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as
interest income from a loan or loans made by such
taxpayer to a borrower, to the extent that such a
loan is secured by property which is eligible for
the High Impact Business Investment Credit. To
determine the portion of a loan or loans that is
secured by property eligible for a Section 201(i)
investment credit to the borrower, the entire
principal amount of the loan or loans between the
taxpayer and the borrower should be divided into the
basis of the Section 201(i) investment credit
property which secures the loan or loans, using for
this purpose the original basis of such property on
the date that it was placed in service in a
federally designated Foreign Trade Zone or Sub-Zone
located in Illinois. No taxpayer that is eligible
for the deduction provided in subparagraph (M) of
paragraph (2) of this subsection shall be eligible
for the deduction provided under this subparagraph
(M-1). The subtraction modification available to
taxpayers in any year under this subsection shall be
that portion of the total interest paid by the
borrower with respect to such loan attributable to
the eligible property as calculated under the
previous sentence;
(N) Two times any contribution made during the
taxable year to a designated zone organization to
the extent that the contribution (i) qualifies as a
charitable contribution under subsection (c) of
Section 170 of the Internal Revenue Code and (ii)
must, by its terms, be used for a project approved
by the Department of Commerce and Community Affairs
under Section 11 of the Illinois Enterprise Zone
Act;
(O) An amount equal to: (i) 85% for taxable
years ending on or before December 31, 1992, or, a
percentage equal to the percentage allowable under
Section 243(a)(1) of the Internal Revenue Code of
1986 for taxable years ending after December 31,
1992, of the amount by which dividends included in
taxable income and received from a corporation that
is not created or organized under the laws of the
United States or any state or political subdivision
thereof, including, for taxable years ending on or
after December 31, 1988, dividends received or
deemed received or paid or deemed paid under
Sections 951 through 964 of the Internal Revenue
Code, exceed the amount of the modification provided
under subparagraph (G) of paragraph (2) of this
subsection (b) which is related to such dividends;
plus (ii) 100% of the amount by which dividends,
included in taxable income and received, including,
for taxable years ending on or after December 31,
1988, dividends received or deemed received or paid
or deemed paid under Sections 951 through 964 of the
Internal Revenue Code, from any such corporation
specified in clause (i) that would but for the
provisions of Section 1504 (b) (3) of the Internal
Revenue Code be treated as a member of the
affiliated group which includes the dividend
recipient, exceed the amount of the modification
provided under subparagraph (G) of paragraph (2) of
this subsection (b) which is related to such
dividends;
(P) An amount equal to any contribution made
to a job training project established pursuant to
the Tax Increment Allocation Redevelopment Act; and
(Q) An amount equal to the amount of the
deduction used to compute the federal income tax
credit for restoration of substantial amounts held
under claim of right for the taxable year pursuant
to Section 1341 of the Internal Revenue Code of
1986.
(3) Special rule. For purposes of paragraph (2)
(A), "gross income" in the case of a life insurance
company, for tax years ending on and after December 31,
1994, shall mean the gross investment income for the
taxable year.
(c) Trusts and estates.
(1) In general. In the case of a trust or estate,
base income means an amount equal to the taxpayer's
taxable income for the taxable year as modified by
paragraph (2).
(2) Modifications. Subject to the provisions of
paragraph (3), the taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or
accrued to the taxpayer as interest or dividends
during the taxable year to the extent excluded from
gross income in the computation of taxable income;
(B) In the case of (i) an estate, $600; (ii) a
trust which, under its governing instrument, is
required to distribute all of its income currently,
$300; and (iii) any other trust, $100, but in each
such case, only to the extent such amount was
deducted in the computation of taxable income;
(C) An amount equal to the amount of tax
imposed by this Act to the extent deducted from
gross income in the computation of taxable income
for the taxable year;
(D) The amount of any net operating loss
deduction taken in arriving at taxable income, other
than a net operating loss carried forward from a
taxable year ending prior to December 31, 1986;
(E) For taxable years in which a net operating
loss carryback or carryforward from a taxable year
ending prior to December 31, 1986 is an element of
taxable income under paragraph (1) of subsection (e)
or subparagraph (E) of paragraph (2) of subsection
(e), the amount by which addition modifications
other than those provided by this subparagraph (E)
exceeded subtraction modifications in such taxable
year, with the following limitations applied in the
order that they are listed:
(i) the addition modification relating to
the net operating loss carried back or forward
to the taxable year from any taxable year
ending prior to December 31, 1986 shall be
reduced by the amount of addition modification
under this subparagraph (E) which related to
that net operating loss and which was taken
into account in calculating the base income of
an earlier taxable year, and
(ii) the addition modification relating
to the net operating loss carried back or
forward to the taxable year from any taxable
year ending prior to December 31, 1986 shall
not exceed the amount of such carryback or
carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding
provisions of this subparagraph (E) for each such
taxable year;
(F) For taxable years ending on or after
January 1, 1989, an amount equal to the tax deducted
pursuant to Section 164 of the Internal Revenue Code
if the trust or estate is claiming the same tax for
purposes of the Illinois foreign tax credit under
Section 601 of this Act;
(G) An amount equal to the amount of the
capital gain deduction allowable under the Internal
Revenue Code, to the extent deducted from gross
income in the computation of taxable income; and
(G-5) For taxable years ending after December
31, 1997, an amount equal to any eligible
remediation costs that the trust or estate deducted
in computing adjusted gross income and for which the
trust or estate claims a credit under subsection (l)
of Section 201;
and by deducting from the total so obtained the sum of
the following amounts:
(H) An amount equal to all amounts included in
such total pursuant to the provisions of Sections
402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
408 of the Internal Revenue Code or included in such
total as distributions under the provisions of any
retirement or disability plan for employees of any
governmental agency or unit, or retirement payments
to retired partners, which payments are excluded in
computing net earnings from self employment by
Section 1402 of the Internal Revenue Code and
regulations adopted pursuant thereto;
(I) The valuation limitation amount;
(J) An amount equal to the amount of any tax
imposed by this Act which was refunded to the
taxpayer and included in such total for the taxable
year;
(K) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A),
(B), (C), (D), (E), (F) and (G) which are exempt
from taxation by this State either by reason of its
statutes or Constitution or by reason of the
Constitution, treaties or statutes of the United
States; provided that, in the case of any statute of
this State that exempts income derived from bonds or
other obligations from the tax imposed under this
Act, the amount exempted shall be the interest net
of bond premium amortization;
(L) With the exception of any amounts
subtracted under subparagraph (K), an amount equal
to the sum of all amounts disallowed as deductions
by Sections 171(a) (2) and 265(a)(2) of the Internal
Revenue Code, as now or hereafter amended, and all
amounts of expenses allocable to interest and
disallowed as deductions by Section 265(1) of the
Internal Revenue Code of 1954, as now or hereafter
amended;
(M) An amount equal to those dividends
included in such total which were paid by a
corporation which conducts business operations in an
Enterprise Zone or zones created under the Illinois
Enterprise Zone Act and conducts substantially all
of its operations in an Enterprise Zone or Zones;
(N) An amount equal to any contribution made
to a job training project established pursuant to
the Tax Increment Allocation Redevelopment Act;
(O) An amount equal to those dividends
included in such total that were paid by a
corporation that conducts business operations in a
federally designated Foreign Trade Zone or Sub-Zone
and that is designated a High Impact Business
located in Illinois; provided that dividends
eligible for the deduction provided in subparagraph
(M) of paragraph (2) of this subsection shall not be
eligible for the deduction provided under this
subparagraph (O); and
(P) An amount equal to the amount of the
deduction used to compute the federal income tax
credit for restoration of substantial amounts held
under claim of right for the taxable year pursuant
to Section 1341 of the Internal Revenue Code of
1986; and.
(Q) For taxable year 1999 and thereafter, an
amount equal to the amount of any (i) distributions,
to the extent includible in gross income for federal
income tax purposes, made to the taxpayer because of
his or her status as a victim of persecution for
racial or religious reasons by Nazi Germany or any
other Axis regime or as an heir of the victim and
(ii) items of income, to the extent includible in
gross income for federal income tax purposes,
attributable to, derived from or in any way related
to assets stolen from, hidden from, or otherwise
lost to a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime immediately prior to, during, and immediately
after World War II, including, but not limited to,
interest on the proceeds receivable as insurance
under policies issued to a victim of persecution for
racial or religious reasons by Nazi Germany or any
other Axis regime by European insurance companies
immediately prior to and during World War II;
provided, however, this subtraction from federal
adjusted gross income does not apply to assets
acquired with such assets or with the proceeds from
the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the
first recipient of such assets after their recovery
and who is a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim. The amount of
and the eligibility for any public assistance,
benefit, or similar entitlement is not affected by
the inclusion of items (i) and (ii) of this
paragraph in gross income for federal income tax
purposes. This paragraph is exempt from the
provisions of Section 250.
(3) Limitation. The amount of any modification
otherwise required under this subsection shall, under
regulations prescribed by the Department, be adjusted by
any amounts included therein which were properly paid,
credited, or required to be distributed, or permanently
set aside for charitable purposes pursuant to Internal
Revenue Code Section 642(c) during the taxable year.
(d) Partnerships.
(1) In general. In the case of a partnership, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to
in paragraph (1) shall be modified by adding thereto the
sum of the following amounts:
(A) An amount equal to all amounts paid or
accrued to the taxpayer as interest or dividends
during the taxable year to the extent excluded from
gross income in the computation of taxable income;
(B) An amount equal to the amount of tax
imposed by this Act to the extent deducted from
gross income for the taxable year; and
(C) The amount of deductions allowed to the
partnership pursuant to Section 707 (c) of the
Internal Revenue Code in calculating its taxable
income; and
(D) An amount equal to the amount of the
capital gain deduction allowable under the Internal
Revenue Code, to the extent deducted from gross
income in the computation of taxable income;
and by deducting from the total so obtained the following
amounts:
(E) The valuation limitation amount;
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the
taxpayer and included in such total for the taxable
year;
(G) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A),
(B), (C) and (D) which are exempt from taxation by
this State either by reason of its statutes or
Constitution or by reason of the Constitution,
treaties or statutes of the United States; provided
that, in the case of any statute of this State that
exempts income derived from bonds or other
obligations from the tax imposed under this Act, the
amount exempted shall be the interest net of bond
premium amortization;
(H) Any income of the partnership which
constitutes personal service income as defined in
Section 1348 (b) (1) of the Internal Revenue Code
(as in effect December 31, 1981) or a reasonable
allowance for compensation paid or accrued for
services rendered by partners to the partnership,
whichever is greater;
(I) An amount equal to all amounts of income
distributable to an entity subject to the Personal
Property Tax Replacement Income Tax imposed by
subsections (c) and (d) of Section 201 of this Act
including amounts distributable to organizations
exempt from federal income tax by reason of Section
501(a) of the Internal Revenue Code;
(J) With the exception of any amounts
subtracted under subparagraph (G), an amount equal
to the sum of all amounts disallowed as deductions
by Sections 171(a) (2), and 265(2) of the Internal
Revenue Code of 1954, as now or hereafter amended,
and all amounts of expenses allocable to interest
and disallowed as deductions by Section 265(1) of
the Internal Revenue Code, as now or hereafter
amended;
(K) An amount equal to those dividends
included in such total which were paid by a
corporation which conducts business operations in an
Enterprise Zone or zones created under the Illinois
Enterprise Zone Act, enacted by the 82nd General
Assembly, and which does not conduct such operations
other than in an Enterprise Zone or Zones;
(L) An amount equal to any contribution made
to a job training project established pursuant to
the Real Property Tax Increment Allocation
Redevelopment Act;
(M) An amount equal to those dividends
included in such total that were paid by a
corporation that conducts business operations in a
federally designated Foreign Trade Zone or Sub-Zone
and that is designated a High Impact Business
located in Illinois; provided that dividends
eligible for the deduction provided in subparagraph
(K) of paragraph (2) of this subsection shall not be
eligible for the deduction provided under this
subparagraph (M); and
(N) An amount equal to the amount of the
deduction used to compute the federal income tax
credit for restoration of substantial amounts held
under claim of right for the taxable year pursuant
to Section 1341 of the Internal Revenue Code of
1986.
(e) Gross income; adjusted gross income; taxable income.
(1) In general. Subject to the provisions of
paragraph (2) and subsection (b) (3), for purposes of
this Section and Section 803(e), a taxpayer's gross
income, adjusted gross income, or taxable income for the
taxable year shall mean the amount of gross income,
adjusted gross income or taxable income properly
reportable for federal income tax purposes for the
taxable year under the provisions of the Internal Revenue
Code. Taxable income may be less than zero. However, for
taxable years ending on or after December 31, 1986, net
operating loss carryforwards from taxable years ending
prior to December 31, 1986, may not exceed the sum of
federal taxable income for the taxable year before net
operating loss deduction, plus the excess of addition
modifications over subtraction modifications for the
taxable year. For taxable years ending prior to December
31, 1986, taxable income may never be an amount in excess
of the net operating loss for the taxable year as defined
in subsections (c) and (d) of Section 172 of the Internal
Revenue Code, provided that when taxable income of a
corporation (other than a Subchapter S corporation),
trust, or estate is less than zero and addition
modifications, other than those provided by subparagraph
(E) of paragraph (2) of subsection (b) for corporations
or subparagraph (E) of paragraph (2) of subsection (c)
for trusts and estates, exceed subtraction modifications,
an addition modification must be made under those
subparagraphs for any other taxable year to which the
taxable income less than zero (net operating loss) is
applied under Section 172 of the Internal Revenue Code or
under subparagraph (E) of paragraph (2) of this
subsection (e) applied in conjunction with Section 172 of
the Internal Revenue Code.
(2) Special rule. For purposes of paragraph (1) of
this subsection, the taxable income properly reportable
for federal income tax purposes shall mean:
(A) Certain life insurance companies. In the
case of a life insurance company subject to the tax
imposed by Section 801 of the Internal Revenue Code,
life insurance company taxable income, plus the
amount of distribution from pre-1984 policyholder
surplus accounts as calculated under Section 815a of
the Internal Revenue Code;
(B) Certain other insurance companies. In the
case of mutual insurance companies subject to the
tax imposed by Section 831 of the Internal Revenue
Code, insurance company taxable income;
(C) Regulated investment companies. In the
case of a regulated investment company subject to
the tax imposed by Section 852 of the Internal
Revenue Code, investment company taxable income;
(D) Real estate investment trusts. In the
case of a real estate investment trust subject to
the tax imposed by Section 857 of the Internal
Revenue Code, real estate investment trust taxable
income;
(E) Consolidated corporations. In the case of
a corporation which is a member of an affiliated
group of corporations filing a consolidated income
tax return for the taxable year for federal income
tax purposes, taxable income determined as if such
corporation had filed a separate return for federal
income tax purposes for the taxable year and each
preceding taxable year for which it was a member of
an affiliated group. For purposes of this
subparagraph, the taxpayer's separate taxable income
shall be determined as if the election provided by
Section 243(b) (2) of the Internal Revenue Code had
been in effect for all such years;
(F) Cooperatives. In the case of a
cooperative corporation or association, the taxable
income of such organization determined in accordance
with the provisions of Section 1381 through 1388 of
the Internal Revenue Code;
(G) Subchapter S corporations. In the case
of: (i) a Subchapter S corporation for which there
is in effect an election for the taxable year under
Section 1362 of the Internal Revenue Code, the
taxable income of such corporation determined in
accordance with Section 1363(b) of the Internal
Revenue Code, except that taxable income shall take
into account those items which are required by
Section 1363(b)(1) of the Internal Revenue Code to
be separately stated; and (ii) a Subchapter S
corporation for which there is in effect a federal
election to opt out of the provisions of the
Subchapter S Revision Act of 1982 and have applied
instead the prior federal Subchapter S rules as in
effect on July 1, 1982, the taxable income of such
corporation determined in accordance with the
federal Subchapter S rules as in effect on July 1,
1982; and
(H) Partnerships. In the case of a
partnership, taxable income determined in accordance
with Section 703 of the Internal Revenue Code,
except that taxable income shall take into account
those items which are required by Section 703(a)(1)
to be separately stated but which would be taken
into account by an individual in calculating his
taxable income.
(f) Valuation limitation amount.
(1) In general. The valuation limitation amount
referred to in subsections (a) (2) (G), (c) (2) (I) and
(d)(2) (E) is an amount equal to:
(A) The sum of the pre-August 1, 1969
appreciation amounts (to the extent consisting of
gain reportable under the provisions of Section 1245
or 1250 of the Internal Revenue Code) for all
property in respect of which such gain was reported
for the taxable year; plus
(B) The lesser of (i) the sum of the
pre-August 1, 1969 appreciation amounts (to the
extent consisting of capital gain) for all property
in respect of which such gain was reported for
federal income tax purposes for the taxable year, or
(ii) the net capital gain for the taxable year,
reduced in either case by any amount of such gain
included in the amount determined under subsection
(a) (2) (F) or (c) (2) (H).
(2) Pre-August 1, 1969 appreciation amount.
(A) If the fair market value of property
referred to in paragraph (1) was readily
ascertainable on August 1, 1969, the pre-August 1,
1969 appreciation amount for such property is the
lesser of (i) the excess of such fair market value
over the taxpayer's basis (for determining gain) for
such property on that date (determined under the
Internal Revenue Code as in effect on that date), or
(ii) the total gain realized and reportable for
federal income tax purposes in respect of the sale,
exchange or other disposition of such property.
(B) If the fair market value of property
referred to in paragraph (1) was not readily
ascertainable on August 1, 1969, the pre-August 1,
1969 appreciation amount for such property is that
amount which bears the same ratio to the total gain
reported in respect of the property for federal
income tax purposes for the taxable year, as the
number of full calendar months in that part of the
taxpayer's holding period for the property ending
July 31, 1969 bears to the number of full calendar
months in the taxpayer's entire holding period for
the property.
(C) The Department shall prescribe such
regulations as may be necessary to carry out the
purposes of this paragraph.
(g) Double deductions. Unless specifically provided
otherwise, nothing in this Section shall permit the same item
to be deducted more than once.
(h) Legislative intention. Except as expressly provided
by this Section there shall be no modifications or
limitations on the amounts of income, gain, loss or deduction
taken into account in determining gross income, adjusted
gross income or taxable income for federal income tax
purposes for the taxable year, or in the amount of such items
entering into the computation of base income and net income
under this Act for such taxable year, whether in respect of
property values as of August 1, 1969 or otherwise.
(Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
89-418, eff. 11-15-95; 89-460, eff. 5-24-96; 89-626, eff.
8-9-96; 90-491, eff. 1-1-98; 90-717, eff. 8-7-98; 90-770,
eff. 8-14-98; revised 9-21-98.)
Section 10. The Illinois Public Aid Code is amended by
changing Sections 3-1.2, 3-5, 4-1.6, 4-2, 5-2, 5-4, 6-1.2,
and 6-2 as follows:
(305 ILCS 5/3-1.2) (from Ch. 23, par. 3-1.2)
Sec. 3-1.2. Need. Income available to the person, when
added to contributions in money, substance, or services from
other sources, including contributions from legally
responsible relatives, must be insufficient to equal the
grant amount established by Department regulation for such
person.
In determining earned income to be taken into account,
consideration shall be given to any expenses reasonably
attributable to the earning of such income. If federal law or
regulations permit or require exemption of earned or other
income and resources, the Illinois Department shall provide
by rule and regulation that the amount of income to be
disregarded be increased (1) to the maximum extent so
required and (2) to the maximum extent permitted by federal
law or regulation in effect as of the date this Amendatory
Act becomes law. The Illinois Department may also provide by
rule and regulation that the amount of resources to be
disregarded be increased to the maximum extent so permitted
or required.
In determining the resources of an individual or any
dependents, the Department shall exclude from consideration
the value of funeral and burial spaces, grave markers and
other funeral and burial merchandise, funeral and burial
insurance the proceeds of which can only be used to pay the
funeral and burial expenses of the insured and funds
specifically set aside for the funeral and burial
arrangements of the individual or his or her dependents,
including prepaid funeral and burial plans, to the same
extent that such items are excluded from consideration under
the federal Supplemental Security Income program.
The homestead shall be exempt from consideration except
to the extent that it meets the income and shelter needs of
the person. "Homestead" means the dwelling house and
contiguous real estate owned and occupied by the person,
regardless of its value.
Occasional or irregular gifts in cash, goods or services
from persons who are not legally responsible relatives which
are of nominal value or which do not have significant effect
in meeting essential requirements shall be disregarded. The
eligibility of any applicant for or recipient of public aid
under this Article is not affected by the payment of any
grant under the "Senior Citizens and Disabled Persons
Property Tax Relief and Pharmaceutical Assistance Act" or any
distributions or items of income described under subparagraph
(X) of paragraph (2) of subsection (a) of Section 203 of the
Illinois Income Tax Act.
The Illinois Department may, after appropriate
investigation, establish and implement a consolidated
standard to determine need and eligibility for and amount of
benefits under this Article or a uniform cash supplement to
the federal Supplemental Security Income program for all or
any part of the then current recipients under this Article;
provided, however, that the establishment or implementation
of such a standard or supplement shall not result in
reductions in benefits under this Article for the then
current recipients of such benefits.
(Source: P.A. 84-1308.)
(305 ILCS 5/3-5) (from Ch. 23, par. 3-5)
Sec. 3-5. Amount of aid. The amount and nature of
financial aid granted to or in behalf of aged, blind, or
disabled persons shall be determined in accordance with the
standards, grant amounts, rules and regulations of the
Illinois Department. Due regard shall be given to the
requirements and conditions existing in each case, and to the
amount of property owned and the income, money contributions,
and other support, and resources received or obtainable by
the person, from whatever source. However, the amount and
nature of any financial aid is not affected by the payment of
any grant under the "Senior Citizens and Disabled Persons
Property Tax Relief and Pharmaceutical Assistance Act" or any
distributions or items of income described under subparagraph
(X) of paragraph (2) of subsection (a) of Section 203 of the
Illinois Income Tax Act. The aid shall be sufficient, when
added to all other income, money contributions and support,
to provide the person with a grant in the amount established
by Department regulation for such a person, based upon
standards providing a livelihood compatible with health and
well-being.
(Source: P.A. 84-832.)
(305 ILCS 5/4-1.6) (from Ch. 23, par. 4-1.6)
Sec. 4-1.6. Need. Income available to the family as
defined by the Illinois Department by rule, or to the child
in the case of a child removed from his or her home, when
added to contributions in money, substance or services from
other sources, including income available from parents absent
from the home or from a stepparent, contributions made for
the benefit of the parent or other persons necessary to
provide care and supervision to the child, and contributions
from legally responsible relatives, must be insufficient to
equal the grant amount established by Department regulation
for such a person.
In considering income to be taken into account,
consideration shall be given to any expenses reasonably
attributable to the earning of such income. The Illinois
Department may also, subject to such limitations as may be
prescribed by federal law or regulation, permit all or any
portion of earned or other income to be set aside for the
future identifiable needs of a child. If federal law or
regulations permit or require exemption of other income of
recipients, the Illinois Department may provide by rule and
regulation for the exemptions thus permitted or required.
The eligibility of any applicant for or recipient of public
aid under this Article is not affected by the payment of any
grant under the "Senior Citizens and Disabled Persons
Property Tax Relief and Pharmaceutical Assistance Act" or any
distributions or items of income described under subparagraph
(X) of paragraph (2) of subsection (a) of Section 203 of the
Illinois Income Tax Act.
The Illinois Department may, by rule, set forth criteria
under which an assistance unit is ineligible for cash
assistance under this Article for a specified number of
months due to the receipt of a lump sum payment.
(Source: P.A. 90-17, eff. 7-1-97.)
(305 ILCS 5/4-2) (from Ch. 23, par. 4-2)
Sec. 4-2. Amount of aid.
(a) The amount and nature of financial aid shall be
determined in accordance with the grant amounts, rules and
regulations of the Illinois Department. Due regard shall be
given to the self-sufficiency requirements of the family and
to the income, money contributions and other support and
resources available, from whatever source. Beginning July 1,
1992, the supplementary grants previously paid under this
Section shall no longer be paid. However, the amount and
nature of any financial aid is not affected by the payment of
any grant under the "Senior Citizens and Disabled Persons
Property Tax Relief and Pharmaceutical Assistance Act" or any
distributions or items of income described under subparagraph
(X) of paragraph (2) of subsection (a) of Section 203 of the
Illinois Income Tax Act. The aid shall be sufficient, when
added to all other income, money contributions and support to
provide the family with a grant in the amount established by
Department regulation.
(b) The Illinois Department may conduct special
projects, which may be known as Grant Diversion Projects,
under which recipients of financial aid under this Article
are placed in jobs and their grants are diverted to the
employer who in turn makes payments to the recipients in the
form of salary or other employment benefits. The Illinois
Department shall by rule specify the terms and conditions of
such Grant Diversion Projects. Such projects shall take into
consideration and be coordinated with the programs
administered under the Illinois Emergency Employment
Development Act.
(c) The amount and nature of the financial aid for a
child requiring care outside his own home shall be determined
in accordance with the rules and regulations of the Illinois
Department, with due regard to the needs and requirements of
the child in the foster home or institution in which he has
been placed.
(d) If the Department establishes grants for family
units consisting exclusively of a pregnant woman with no
dependent child or including her husband if living with her,
the grant amount for such a unit shall be equal to the grant
amount for an assistance unit consisting of one adult, or 2
persons if the husband is included. Other than as herein
described, an unborn child shall not be counted in
determining the size of an assistance unit or for calculating
grants.
Payments for basic maintenance requirements of a child or
children and the relative with whom the child or children are
living shall be prescribed, by rule, by the Illinois
Department.
These grants may be increased in the following circumstances:
1. If the child is living with both parents or with
persons standing in the relationship of parents, and if
the grant is necessitated because of the unemployment or
insufficient earnings of the parent or parents and
neither parent is receiving benefits under "The
Unemployment Compensation Act", approved June 30, 1937,
as amended, the maximum may be increased by not more than
$25.
2. If a child is age 13 or over, the maximum may be
increased by not more than $15.
The allowances provided under Article IX for recipients
participating in the training and rehabilitation programs
shall be in addition to the maximum payments established in
this Section.
Grants under this Article shall not be supplemented by
General Assistance provided under Article VI.
(e) Grants shall be paid to the parent or other person
with whom the child or children are living, except for such
amount as is paid in behalf of the child or his parent or
other relative to other persons or agencies pursuant to this
Code or the rules and regulations of the Illinois Department.
(f) An assistance unit, receiving financial aid under
this Article or temporarily ineligible to receive aid under
this Article under a penalty imposed by the Illinois
Department for failure to comply with the eligibility
requirements or that voluntarily requests termination of
financial assistance under this Article and becomes
subsequently eligible for assistance within 9 months, shall
not receive any increase in the amount of aid solely on
account of the birth of a child; except that an increase is
not prohibited when the birth is (i) of a child of a pregnant
woman who became eligible for aid under this Article during
the pregnancy, or (ii) of a child born within 10 months after
the date of implementation of this subsection, or (iii) of a
child conceived after a family became ineligible for
assistance due to income or marriage and at least 3 months of
ineligibility expired before any reapplication for
assistance. This subsection does not, however, prevent a
unit from receiving a general increase in the amount of aid
that is provided to all recipients of aid under this Article.
The Illinois Department is authorized to transfer funds,
and shall use any budgetary savings attributable to not
increasing the grants due to the births of additional
children, to supplement existing funding for employment and
training services for recipients of aid under this Article
IV. The Illinois Department shall target, to the extent the
supplemental funding allows, employment and training services
to the families who do not receive a grant increase after the
birth of a child. In addition, the Illinois Department shall
provide, to the extent the supplemental funding allows, such
families with up to 24 months of transitional child care
pursuant to Illinois Department rules. All remaining
supplemental funds shall be used for employment and training
services or transitional child care support.
In making the transfers authorized by this subsection,
the Illinois Department shall first determine, pursuant to
regulations adopted by the Illinois Department for this
purpose, the amount of savings attributable to not increasing
the grants due to the births of additional children.
Transfers may be made from General Revenue Fund
appropriations for distributive purposes authorized by
Article IV of this Code only to General Revenue Fund
appropriations for employability development services
including operating and administrative costs and related
distributive purposes under Article IXA of this Code. The
Director, with the approval of the Governor, shall certify
the amount and affected line item appropriations to the State
Comptroller.
The Illinois Department shall apply for all waivers of
federal law and regulations necessary to implement this
subsection; implementation of this subsection is contingent
on the Illinois Department receiving all necessary federal
waivers. The Illinois Department may implement this
subsection through the use of emergency rules in accordance
with Section 5-45 of the Illinois Administrative Procedure
Act. For purposes of the Illinois Administrative Procedure
Act, the adoption of rules to implement this subsection shall
be considered an emergency and necessary for the public
interest, safety, and welfare.
Nothing in this subsection shall be construed to prohibit
the Illinois Department from using funds under this Article
IV to provide assistance in the form of vouchers that may be
used to pay for goods and services deemed by the Illinois
Department, by rule, as suitable for the care of the child
such as diapers, clothing, school supplies, and cribs.
(g) (Blank).
(h) Notwithstanding any other provision of this Code,
the Illinois Department is authorized to reduce payment
levels used to determine cash grants under this Article after
December 31 of any fiscal year if the Illinois Department
determines that the caseload upon which the appropriations
for the current fiscal year are based have increased by more
than 5% and the appropriation is not sufficient to ensure
that cash benefits under this Article do not exceed the
amounts appropriated for those cash benefits. Reductions in
payment levels may be accomplished by emergency rule under
Section 5-45 of the Illinois Administrative Procedure Act,
except that the limitation on the number of emergency rules
that may be adopted in a 24-month period shall not apply and
the provisions of Sections 5-115 and 5-125 of the Illinois
Administrative Procedure Act shall not apply. Increases in
payment levels shall be accomplished only in accordance with
Section 5-40 of the Illinois Administrative Procedure Act.
Before any rule to increase payment levels promulgated under
this Section shall become effective, a joint resolution
approving the rule must be adopted by a roll call vote by a
majority of the members elected to each chamber of the
General Assembly.
(Source: P.A. 89-6, eff. 3-6-95; 89-193, eff. 7-21-95;
89-641, eff. 8-9-96; 90-17, eff. 7-1-97; 90-372, eff. 7-1-98;
90-655, eff. 7-30-98.)
(305 ILCS 5/5-2) (from Ch. 23, par. 5-2)
Sec. 5-2. Classes of Persons Eligible. Medical
assistance under this Article shall be available to any of
the following classes of persons in respect to whom a plan
for coverage has been submitted to the Governor by the
Illinois Department and approved by him:
1. Recipients of basic maintenance grants under Articles
III and IV.
2. Persons otherwise eligible for basic maintenance
under Articles III and IV but who fail to qualify thereunder
on the basis of need, and who have insufficient income and
resources to meet the costs of necessary medical care,
including but not limited to, all persons who would be
determined eligible for such basic maintenance under Article
IV by disregarding the maximum earned income permitted by
federal law.
3. Persons who would otherwise qualify for Aid to the
Medically Indigent under Article VII.
4. Persons not eligible under any of the preceding
paragraphs who fall sick, are injured, or die, not having
sufficient money, property or other resources to meet the
costs of necessary medical care or funeral and burial
expenses.
5. (a) Women during pregnancy, after the fact of
pregnancy has been determined by medical diagnosis, and
during the 60-day period beginning on the last day of the
pregnancy, together with their infants and children born
after September 30, 1983, whose income and resources are
insufficient to meet the costs of necessary medical care
to the maximum extent possible under Title XIX of the
Federal Social Security Act.
(b) The Illinois Department and the Governor shall
provide a plan for coverage of the persons eligible under
paragraph 5(a) by April 1, 1990. Such plan shall provide
ambulatory prenatal care to pregnant women during a
presumptive eligibility period and establish an income
eligibility standard that is equal to 133% of the nonfarm
income official poverty line, as defined by the federal
Office of Management and Budget and revised annually in
accordance with Section 673(2) of the Omnibus Budget
Reconciliation Act of 1981, applicable to families of the
same size, provided that costs incurred for medical care
are not taken into account in determining such income
eligibility.
(c) The Illinois Department may conduct a
demonstration in at least one county that will provide
medical assistance to pregnant women, together with their
infants and children up to one year of age, where the
income eligibility standard is set up to 185% of the
nonfarm income official poverty line, as defined by the
federal Office of Management and Budget. The Illinois
Department shall seek and obtain necessary authorization
provided under federal law to implement such a
demonstration. Such demonstration may establish resource
standards that are not more restrictive than those
established under Article IV of this Code.
6. Persons under the age of 18 who fail to qualify as
dependent under Article IV and who have insufficient income
and resources to meet the costs of necessary medical care to
the maximum extent permitted under Title XIX of the Federal
Social Security Act.
7. Persons who are 18 years of age or younger and would
qualify as disabled as defined under the Federal Supplemental
Security Income Program, provided medical service for such
persons would be eligible for Federal Financial
Participation, and provided the Illinois Department
determines that:
(a) the person requires a level of care provided by
a hospital, skilled nursing facility, or intermediate
care facility, as determined by a physician licensed to
practice medicine in all its branches;
(b) it is appropriate to provide such care outside
of an institution, as determined by a physician licensed
to practice medicine in all its branches;
(c) the estimated amount which would be expended
for care outside the institution is not greater than the
estimated amount which would be expended in an
institution.
8. Persons who become ineligible for basic maintenance
assistance under Article IV of this Code in programs
administered by the Illinois Department due to employment
earnings and persons in assistance units comprised of adults
and children who become ineligible for basic maintenance
assistance under Article VI of this Code due to employment
earnings. The plan for coverage for this class of persons
shall:
(a) extend the medical assistance coverage for up
to 12 months following termination of basic maintenance
assistance; and
(b) offer persons who have initially received 6
months of the coverage provided in paragraph (a) above,
the option of receiving an additional 6 months of
coverage, subject to the following:
(i) such coverage shall be pursuant to
provisions of the federal Social Security Act;
(ii) such coverage shall include all services
covered while the person was eligible for basic
maintenance assistance;
(iii) no premium shall be charged for such
coverage; and
(iv) such coverage shall be suspended in the
event of a person's failure without good cause to
file in a timely fashion reports required for this
coverage under the Social Security Act and coverage
shall be reinstated upon the filing of such reports
if the person remains otherwise eligible.
9. Persons with acquired immunodeficiency syndrome
(AIDS) or with AIDS-related conditions with respect to whom
there has been a determination that but for home or
community-based services such individuals would require the
level of care provided in an inpatient hospital, skilled
nursing facility or intermediate care facility the cost of
which is reimbursed under this Article. Assistance shall be
provided to such persons to the maximum extent permitted
under Title XIX of the Federal Social Security Act.
10. Participants in the long-term care insurance
partnership program established under the Partnership for
Long-Term Care Act who meet the qualifications for protection
of resources described in Section 25 of that Act.
The Illinois Department and the Governor shall provide a
plan for coverage of the persons eligible under paragraph 7
as soon as possible after July 1, 1984.
The eligibility of any such person for medical assistance
under this Article is not affected by the payment of any
grant under the Senior Citizens and Disabled Persons Property
Tax Relief and Pharmaceutical Assistance Act or any
distributions or items of income described under subparagraph
(X) of paragraph (2) of subsection (a) of Section 203 of the
Illinois Income Tax Act. The Department shall by rule
establish the amounts of assets to be disregarded in
determining eligibility for medical assistance, which shall
at a minimum equal the amounts to be disregarded under the
Federal Supplemental Security Income Program. The amount of
assets of a single person to be disregarded shall not be less
than $2,000, and the amount of assets of a married couple to
be disregarded shall not be less than $3,000.
To the extent permitted under federal law, any person
found guilty of a second violation of Article VIIIA shall be
ineligible for medical assistance under this Article, as
provided in Section 8A-8.
The eligibility of any person for medical assistance
under this Article shall not be affected by the receipt by
the person of donations or benefits from fundraisers held for
the person in cases of serious illness, as long as neither
the person nor members of the person's family have actual
control over the donations or benefits or the disbursement of
the donations or benefits.
(Source: P.A. 89-525, eff. 7-19-96.)
(305 ILCS 5/5-4) (from Ch. 23, par. 5-4)
Sec. 5-4. Amount and nature of medical assistance. The
amount and nature of medical assistance shall be determined
by the County Departments in accordance with the standards,
rules, and regulations of the Illinois Department of Public
Aid, with due regard to the requirements and conditions in
each case, including contributions available from legally
responsible relatives. However, the amount and nature of
such medical assistance shall not be affected by the payment
of any grant under the Senior Citizens and Disabled Persons
Property Tax Relief and Pharmaceutical Assistance Act or any
distributions or items of income described under subparagraph
(X) of paragraph (2) of subsection (a) of Section 203 of the
Illinois Income Tax Act. The amount and nature of medical
assistance shall not be affected by the receipt of donations
or benefits from fundraisers in cases of serious illness, as
long as neither the person nor members of the person's family
have actual control over the donations or benefits or the
disbursement of the donations or benefits.
In determining the income and assets available to the
institutionalized spouse and to the community spouse, the
Illinois Department of Public Aid shall follow the procedures
established by federal law. The community spouse resource
allowance shall be established and maintained at the maximum
level permitted pursuant to Section 1924(f)(2) of the Social
Security Act, as now or hereafter amended, or an amount set
after a fair hearing, whichever is greater. The monthly
maintenance allowance for the community spouse shall be
established and maintained at the maximum level permitted
pursuant to Section 1924(d)(3)(C) of the Social Security Act,
as now or hereafter amended. Subject to the approval of the
Secretary of the United States Department of Health and Human
Services, the provisions of this Section shall be extended to
persons who but for the provision of home or community-based
services under Section 4.02 of the Illinois Act on the Aging,
would require the level of care provided in an institution,
as is provided for in federal law.
The Department of Human Services shall notify in writing
each institutionalized spouse who is a recipient of medical
assistance under this Article, and each such person's
community spouse, of the changes in treatment of income and
resources, including provisions for protecting income for a
community spouse and permitting the transfer of resources to
a community spouse, required by enactment of the federal
Medicare Catastrophic Coverage Act of 1988 (Public Law
100-360). The notification shall be in language likely to be
easily understood by those persons. The Department of Human
Services also shall reassess the amount of medical assistance
for which each such recipient is eligible as a result of the
enactment of that federal Act, whether or not a recipient
requests such a reassessment.
(Source: P.A. 89-507, eff. 7-1-97; 90-655, eff. 7-30-98.)
(305 ILCS 5/6-1.2) (from Ch. 23, par. 6-1.2)
Sec. 6-1.2. Need. Income available to the person, when
added to contributions in money, substance, or services from
other sources, including contributions from legally
responsible relatives, must be insufficient to equal the
grant amount established by Department regulation (or by
local governmental unit in units which do not receive State
funds) for such a person.
In determining income to be taken into account:
(1) The first $75 of earned income in income
assistance units comprised exclusively of one adult
person shall be disregarded, and for not more than 3
months in any 12 consecutive months that portion of
earned income beyond the first $75 that is the difference
between the standard of assistance and the grant amount,
shall be disregarded.
(2) For income assistance units not comprised
exclusively of one adult person, when authorized by rules
and regulations of the Illinois Department, a portion of
earned income, not to exceed the first $25 a month plus
50% of the next $75, may be disregarded for the purpose
of stimulating and aiding rehabilitative effort and
self-support activity.
"Earned income" means money earned in self-employment or
wages, salary, or commission for personal services performed
as an employee. The eligibility of any applicant for or
recipient of public aid under this Article is not affected by
the payment of any grant under the "Senior Citizens and
Disabled Persons Property Tax Relief and Pharmaceutical
Assistance Act", or any refund or payment of the federal
Earned Income Tax Credit, or any distributions or items of
income described under subparagraph (X) of paragraph (2) of
subsection (a) of Section 203 of the Illinois Income Tax Act.
If federal laws or regulations applicable to persons
receiving assistance under Articles III or IV of this Code
permit or require the exemption of earned income in excess of
the foregoing limitation on earned income exemptions or
permit or require the exemption of certain other income and
resources, the Illinois Department, may, by rule, authorize
comparable exemptions in determining need under this Section.
(Source: P.A. 90-457, eff. 1-1-98.)
(305 ILCS 5/6-2) (from Ch. 23, par. 6-2)
Sec. 6-2. Amount of aid. The amount and nature of
General Assistance for basic maintenance requirements shall
be determined in accordance with local budget standards for
local governmental units which do not receive State funds.
For local governmental units which do receive State funds,
the amount and nature of General Assistance for basic
maintenance requirements shall be determined in accordance
with the standards, rules and regulations of the Illinois
Department. Beginning July 1, 1992, the supplementary grants
previously paid under this Section shall no longer be paid.
However, the amount and nature of any financial aid is not
affected by the payment of any grant under the Senior
Citizens and Disabled Persons Property Tax Relief and
Pharmaceutical Assistance Act or any distributions or items
of income described under subparagraph (X) of paragraph (2)
of subsection (a) of Section 203 of the Illinois Income Tax
Act. Due regard shall be given to the requirements and the
conditions existing in each case, and to the income, money
contributions and other support and resources available, from
whatever source. In local governmental units which do not
receive State funds, the grant shall be sufficient when added
to all other income, money contributions and support in
excess of any excluded income or resources, to provide the
person with a grant in the amount established for such a
person by the local governmental unit based upon standards
meeting basic maintenance requirements. In local
governmental units which do receive State funds, the grant
shall be sufficient when added to all other income, money
contributions and support in excess of any excluded income or
resources, to provide the person with a grant in the amount
established for such a person by Department regulation based
upon standards providing a livelihood compatible with health
and well-being, as directed by Section 12-4.11 of this Code.
The Illinois Department may conduct special projects,
which may be known as Grant Diversion Projects, under which
recipients of financial aid under this Article are placed in
jobs and their grants are diverted to the employer who in
turn makes payments to the recipients in the form of salary
or other employment benefits. The Illinois Department shall
by rule specify the terms and conditions of such Grant
Diversion Projects. Such projects shall take into
consideration and be coordinated with the programs
administered under the Illinois Emergency Employment
Development Act.
The allowances provided under Article IX for recipients
participating in the training and rehabilitation programs
shall be in addition to such maximum payment.
Payments may also be made to provide persons receiving
basic maintenance support with necessary treatment, care and
supplies required because of illness or disability or with
acute medical treatment, care, and supplies. Payments for
necessary or acute medical care under this paragraph may be
made to or in behalf of the person. Obligations incurred for
such services but not paid for at the time of a recipient's
death may be paid, subject to the rules and regulations of
the Illinois Department, after the death of the recipient.
(Source: P.A. 89-646, eff. 1-1-97; 90-372, eff. 7-1-98.)
Section 15. The Senior Citizens and Disabled Persons
Property Tax Relief and Pharmaceutical Assistance Act is
amended by changing Section 3.07 as follows:
(320 ILCS 25/3.07) (from Ch. 67 1/2, par. 403.07)
Sec. 3.07. "Income" means adjusted gross income,
properly reportable for federal income tax purposes under the
provisions of the Internal Revenue Code, modified by adding
thereto the sum of the following amounts to the extent
deducted or excluded from gross income in the computation of
adjusted gross income:
(A) An amount equal to all amounts paid or accrued
as interest or dividends during the taxable year;
(B) An amount equal to the amount of tax imposed by
the Illinois Income Tax Act paid for the taxable year;
(C) An amount equal to all amounts received during
the taxable year as an annuity under an annuity,
endowment or life insurance contract or under any other
contract or agreement;
(D) An amount equal to the amount of benefits paid
under the Federal Social Security Act during the taxable
year;
(E) An amount equal to the amount of benefits paid
under the Railroad Retirement Act during the taxable
year;
(F) An amount equal to the total amount of cash
public assistance payments received from any governmental
agency during the taxable year other than benefits
received pursuant to this Act;
(G) An amount equal to any net operating loss
carryover deduction or capital loss carryover deduction
during the taxable year.
"Income" does not include any grant assistance received
under the Nursing Home Grant Assistance Act or any
distributions or items of income described under subparagraph
(X) of paragraph (2) of subsection (a) of Section 203 of the
Illinois Income Tax Act.
This amendatory Act of 1987 shall be effective for
purposes of this Section for tax years ending on or after
December 31, 1987.
(Source: P.A. 90-491, eff. 1-1-98.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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