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91_HB1120enr
HB1120 Enrolled LRB9100524PTpkA
1 AN ACT concerning victims of Nazi persecution.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Income Tax Act is amended by
5 changing Section 203 as follows:
6 (35 ILCS 5/203) (from Ch. 120, par. 2-203)
7 Sec. 203. Base income defined.
8 (a) Individuals.
9 (1) In general. In the case of an individual, base
10 income means an amount equal to the taxpayer's adjusted
11 gross income for the taxable year as modified by
12 paragraph (2).
13 (2) Modifications. The adjusted gross income
14 referred to in paragraph (1) shall be modified by adding
15 thereto the sum of the following amounts:
16 (A) An amount equal to all amounts paid or
17 accrued to the taxpayer as interest or dividends
18 during the taxable year to the extent excluded from
19 gross income in the computation of adjusted gross
20 income, except stock dividends of qualified public
21 utilities described in Section 305(e) of the
22 Internal Revenue Code;
23 (B) An amount equal to the amount of tax
24 imposed by this Act to the extent deducted from
25 gross income in the computation of adjusted gross
26 income for the taxable year;
27 (C) An amount equal to the amount received
28 during the taxable year as a recovery or refund of
29 real property taxes paid with respect to the
30 taxpayer's principal residence under the Revenue Act
31 of 1939 and for which a deduction was previously
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1 taken under subparagraph (L) of this paragraph (2)
2 prior to July 1, 1991, the retrospective application
3 date of Article 4 of Public Act 87-17. In the case
4 of multi-unit or multi-use structures and farm
5 dwellings, the taxes on the taxpayer's principal
6 residence shall be that portion of the total taxes
7 for the entire property which is attributable to
8 such principal residence;
9 (D) An amount equal to the amount of the
10 capital gain deduction allowable under the Internal
11 Revenue Code, to the extent deducted from gross
12 income in the computation of adjusted gross income;
13 (D-5) An amount, to the extent not included in
14 adjusted gross income, equal to the amount of money
15 withdrawn by the taxpayer in the taxable year from a
16 medical care savings account and the interest earned
17 on the account in the taxable year of a withdrawal
18 pursuant to subsection (b) of Section 20 of the
19 Medical Care Savings Account Act; and
20 (D-10) For taxable years ending after December
21 31, 1997, an amount equal to any eligible
22 remediation costs that the individual deducted in
23 computing adjusted gross income and for which the
24 individual claims a credit under subsection (l) of
25 Section 201;
26 and by deducting from the total so obtained the sum of
27 the following amounts:
28 (E) Any amount included in such total in
29 respect of any compensation (including but not
30 limited to any compensation paid or accrued to a
31 serviceman while a prisoner of war or missing in
32 action) paid to a resident by reason of being on
33 active duty in the Armed Forces of the United States
34 and in respect of any compensation paid or accrued
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1 to a resident who as a governmental employee was a
2 prisoner of war or missing in action, and in respect
3 of any compensation paid to a resident in 1971 or
4 thereafter for annual training performed pursuant to
5 Sections 502 and 503, Title 32, United States Code
6 as a member of the Illinois National Guard;
7 (F) An amount equal to all amounts included in
8 such total pursuant to the provisions of Sections
9 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
10 408 of the Internal Revenue Code, or included in
11 such total as distributions under the provisions of
12 any retirement or disability plan for employees of
13 any governmental agency or unit, or retirement
14 payments to retired partners, which payments are
15 excluded in computing net earnings from self
16 employment by Section 1402 of the Internal Revenue
17 Code and regulations adopted pursuant thereto;
18 (G) The valuation limitation amount;
19 (H) An amount equal to the amount of any tax
20 imposed by this Act which was refunded to the
21 taxpayer and included in such total for the taxable
22 year;
23 (I) An amount equal to all amounts included in
24 such total pursuant to the provisions of Section 111
25 of the Internal Revenue Code as a recovery of items
26 previously deducted from adjusted gross income in
27 the computation of taxable income;
28 (J) An amount equal to those dividends
29 included in such total which were paid by a
30 corporation which conducts business operations in an
31 Enterprise Zone or zones created under the Illinois
32 Enterprise Zone Act, and conducts substantially all
33 of its operations in an Enterprise Zone or zones;
34 (K) An amount equal to those dividends
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1 included in such total that were paid by a
2 corporation that conducts business operations in a
3 federally designated Foreign Trade Zone or Sub-Zone
4 and that is designated a High Impact Business
5 located in Illinois; provided that dividends
6 eligible for the deduction provided in subparagraph
7 (J) of paragraph (2) of this subsection shall not be
8 eligible for the deduction provided under this
9 subparagraph (K);
10 (L) For taxable years ending after December
11 31, 1983, an amount equal to all social security
12 benefits and railroad retirement benefits included
13 in such total pursuant to Sections 72(r) and 86 of
14 the Internal Revenue Code;
15 (M) With the exception of any amounts
16 subtracted under subparagraph (N), an amount equal
17 to the sum of all amounts disallowed as deductions
18 by Sections 171(a) (2), and 265(2) of the Internal
19 Revenue Code of 1954, as now or hereafter amended,
20 and all amounts of expenses allocable to interest
21 and disallowed as deductions by Section 265(1) of
22 the Internal Revenue Code of 1954, as now or
23 hereafter amended;
24 (N) An amount equal to all amounts included in
25 such total which are exempt from taxation by this
26 State either by reason of its statutes or
27 Constitution or by reason of the Constitution,
28 treaties or statutes of the United States; provided
29 that, in the case of any statute of this State that
30 exempts income derived from bonds or other
31 obligations from the tax imposed under this Act, the
32 amount exempted shall be the interest net of bond
33 premium amortization;
34 (O) An amount equal to any contribution made
HB1120 Enrolled -5- LRB9100524PTpkA
1 to a job training project established pursuant to
2 the Tax Increment Allocation Redevelopment Act;
3 (P) An amount equal to the amount of the
4 deduction used to compute the federal income tax
5 credit for restoration of substantial amounts held
6 under claim of right for the taxable year pursuant
7 to Section 1341 of the Internal Revenue Code of
8 1986;
9 (Q) An amount equal to any amounts included in
10 such total, received by the taxpayer as an
11 acceleration in the payment of life, endowment or
12 annuity benefits in advance of the time they would
13 otherwise be payable as an indemnity for a terminal
14 illness;
15 (R) An amount equal to the amount of any
16 federal or State bonus paid to veterans of the
17 Persian Gulf War;
18 (S) An amount, to the extent included in
19 adjusted gross income, equal to the amount of a
20 contribution made in the taxable year on behalf of
21 the taxpayer to a medical care savings account
22 established under the Medical Care Savings Account
23 Act to the extent the contribution is accepted by
24 the account administrator as provided in that Act;
25 (T) An amount, to the extent included in
26 adjusted gross income, equal to the amount of
27 interest earned in the taxable year on a medical
28 care savings account established under the Medical
29 Care Savings Account Act on behalf of the taxpayer,
30 other than interest added pursuant to item (D-5) of
31 this paragraph (2);
32 (U) For one taxable year beginning on or after
33 January 1, 1994, an amount equal to the total amount
34 of tax imposed and paid under subsections (a) and
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1 (b) of Section 201 of this Act on grant amounts
2 received by the taxpayer under the Nursing Home
3 Grant Assistance Act during the taxpayer's taxable
4 years 1992 and 1993;
5 (V) Beginning with tax years ending on or
6 after December 31, 1995 and ending with tax years
7 ending on or before December 31, 1999, an amount
8 equal to the amount paid by a taxpayer who is a
9 self-employed taxpayer, a partner of a partnership,
10 or a shareholder in a Subchapter S corporation for
11 health insurance or long-term care insurance for
12 that taxpayer or that taxpayer's spouse or
13 dependents, to the extent that the amount paid for
14 that health insurance or long-term care insurance
15 may be deducted under Section 213 of the Internal
16 Revenue Code of 1986, has not been deducted on the
17 federal income tax return of the taxpayer, and does
18 not exceed the taxable income attributable to that
19 taxpayer's income, self-employment income, or
20 Subchapter S corporation income; except that no
21 deduction shall be allowed under this item (V) if
22 the taxpayer is eligible to participate in any
23 health insurance or long-term care insurance plan of
24 an employer of the taxpayer or the taxpayer's
25 spouse. The amount of the health insurance and
26 long-term care insurance subtracted under this item
27 (V) shall be determined by multiplying total health
28 insurance and long-term care insurance premiums paid
29 by the taxpayer times a number that represents the
30 fractional percentage of eligible medical expenses
31 under Section 213 of the Internal Revenue Code of
32 1986 not actually deducted on the taxpayer's federal
33 income tax return; and
34 (W) For taxable years beginning on or after
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1 January 1, 1998, all amounts included in the
2 taxpayer's federal gross income in the taxable year
3 from amounts converted from a regular IRA to a Roth
4 IRA. This paragraph is exempt from the provisions of
5 Section 250; and.
6 (X) For taxable year 1999 and thereafter, an
7 amount equal to the amount of any (i) distributions,
8 to the extent includible in gross income for federal
9 income tax purposes, made to the taxpayer because of
10 his or her status as a victim of persecution for
11 racial or religious reasons by Nazi Germany or any
12 other Axis regime or as an heir of the victim and
13 (ii) items of income, to the extent includible in
14 gross income for federal income tax purposes,
15 attributable to, derived from or in any way related
16 to assets stolen from, hidden from, or otherwise
17 lost to a victim of persecution for racial or
18 religious reasons by Nazi Germany or any other Axis
19 regime immediately prior to, during, and immediately
20 after World War II, including, but not limited to,
21 interest on the proceeds receivable as insurance
22 under policies issued to a victim of persecution for
23 racial or religious reasons by Nazi Germany or any
24 other Axis regime by European insurance companies
25 immediately prior to and during World War II;
26 provided, however, this subtraction from federal
27 adjusted gross income does not apply to assets
28 acquired with such assets or with the proceeds from
29 the sale of such assets; provided, further, this
30 paragraph shall only apply to a taxpayer who was the
31 first recipient of such assets after their recovery
32 and who is a victim of persecution for racial or
33 religious reasons by Nazi Germany or any other Axis
34 regime or as an heir of the victim. The amount of
HB1120 Enrolled -8- LRB9100524PTpkA
1 and the eligibility for any public assistance,
2 benefit, or similar entitlement is not affected by
3 the inclusion of items (i) and (ii) of this
4 paragraph in gross income for federal income tax
5 purposes. This paragraph is exempt from the
6 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
12 in paragraph (1) shall be modified by adding thereto the
13 sum of the following amounts:
14 (A) An amount equal to all amounts paid or
15 accrued to the taxpayer as interest and all
16 distributions received from regulated investment
17 companies during the taxable year to the extent
18 excluded from gross income in the computation of
19 taxable income;
20 (B) An amount equal to the amount of tax
21 imposed by this Act to the extent deducted from
22 gross income in the computation of taxable income
23 for the taxable year;
24 (C) In the case of a regulated investment
25 company, an amount equal to the excess of (i) the
26 net long-term capital gain for the taxable year,
27 over (ii) the amount of the capital gain dividends
28 designated as such in accordance with Section
29 852(b)(3)(C) of the Internal Revenue Code and any
30 amount designated under Section 852(b)(3)(D) of the
31 Internal Revenue Code, attributable to the taxable
32 year. (this amendatory Act of 1995 (Public Act
33 89-89) is declarative of existing law and is not a
34 new enactment);.
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1 (D) The amount of any net operating loss
2 deduction taken in arriving at taxable income, other
3 than a net operating loss carried forward from a
4 taxable year ending prior to December 31, 1986; and
5 (E) For taxable years in which a net operating
6 loss carryback or carryforward from a taxable year
7 ending prior to December 31, 1986 is an element of
8 taxable income under paragraph (1) of subsection (e)
9 or subparagraph (E) of paragraph (2) of subsection
10 (e), the amount by which addition modifications
11 other than those provided by this subparagraph (E)
12 exceeded subtraction modifications in such earlier
13 taxable year, with the following limitations applied
14 in the order that they are listed:
15 (i) the addition modification relating to
16 the net operating loss carried back or forward
17 to the taxable year from any taxable year
18 ending prior to December 31, 1986 shall be
19 reduced by the amount of addition modification
20 under this subparagraph (E) which related to
21 that net operating loss and which was taken
22 into account in calculating the base income of
23 an earlier taxable year, and
24 (ii) the addition modification relating
25 to the net operating loss carried back or
26 forward to the taxable year from any taxable
27 year ending prior to December 31, 1986 shall
28 not exceed the amount of such carryback or
29 carryforward;
30 For taxable years in which there is a net
31 operating loss carryback or carryforward from more
32 than one other taxable year ending prior to December
33 31, 1986, the addition modification provided in this
34 subparagraph (E) shall be the sum of the amounts
HB1120 Enrolled -10- LRB9100524PTpkA
1 computed independently under the preceding
2 provisions of this subparagraph (E) for each such
3 taxable year;, and
4 (E-5) For taxable years ending after December
5 31, 1997, an amount equal to any eligible
6 remediation costs that the corporation deducted in
7 computing adjusted gross income and for which the
8 corporation claims a credit under subsection (l) of
9 Section 201;
10 and by deducting from the total so obtained the sum of
11 the following amounts:
12 (F) An amount equal to the amount of any tax
13 imposed by this Act which was refunded to the
14 taxpayer and included in such total for the taxable
15 year;
16 (G) An amount equal to any amount included in
17 such total under Section 78 of the Internal Revenue
18 Code;
19 (H) In the case of a regulated investment
20 company, an amount equal to the amount of exempt
21 interest dividends as defined in subsection (b) (5)
22 of Section 852 of the Internal Revenue Code, paid to
23 shareholders for the taxable year;
24 (I) With the exception of any amounts
25 subtracted under subparagraph (J), an amount equal
26 to the sum of all amounts disallowed as deductions
27 by Sections 171(a) (2), and 265(a)(2) and amounts
28 disallowed as interest expense by Section 291(a)(3)
29 of the Internal Revenue Code, as now or hereafter
30 amended, and all amounts of expenses allocable to
31 interest and disallowed as deductions by Section
32 265(a)(1) of the Internal Revenue Code, as now or
33 hereafter amended;
34 (J) An amount equal to all amounts included in
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1 such total which are exempt from taxation by this
2 State either by reason of its statutes or
3 Constitution or by reason of the Constitution,
4 treaties or statutes of the United States; provided
5 that, in the case of any statute of this State that
6 exempts income derived from bonds or other
7 obligations from the tax imposed under this Act, the
8 amount exempted shall be the interest net of bond
9 premium amortization;
10 (K) An amount equal to those dividends
11 included in such total which were paid by a
12 corporation which conducts business operations in an
13 Enterprise Zone or zones created under the Illinois
14 Enterprise Zone Act and conducts substantially all
15 of its operations in an Enterprise Zone or zones;
16 (L) An amount equal to those dividends
17 included in such total that were paid by a
18 corporation that conducts business operations in a
19 federally designated Foreign Trade Zone or Sub-Zone
20 and that is designated a High Impact Business
21 located in Illinois; provided that dividends
22 eligible for the deduction provided in subparagraph
23 (K) of paragraph 2 of this subsection shall not be
24 eligible for the deduction provided under this
25 subparagraph (L);
26 (M) For any taxpayer that is a financial
27 organization within the meaning of Section 304(c) of
28 this Act, an amount included in such total as
29 interest income from a loan or loans made by such
30 taxpayer to a borrower, to the extent that such a
31 loan is secured by property which is eligible for
32 the Enterprise Zone Investment Credit. To determine
33 the portion of a loan or loans that is secured by
34 property eligible for a Section 201(h) investment
HB1120 Enrolled -12- LRB9100524PTpkA
1 credit to the borrower, the entire principal amount
2 of the loan or loans between the taxpayer and the
3 borrower should be divided into the basis of the
4 Section 201(h) investment credit property which
5 secures the loan or loans, using for this purpose
6 the original basis of such property on the date that
7 it was placed in service in the Enterprise Zone.
8 The subtraction modification available to taxpayer
9 in any year under this subsection shall be that
10 portion of the total interest paid by the borrower
11 with respect to such loan attributable to the
12 eligible property as calculated under the previous
13 sentence;
14 (M-1) For any taxpayer that is a financial
15 organization within the meaning of Section 304(c) of
16 this Act, an amount included in such total as
17 interest income from a loan or loans made by such
18 taxpayer to a borrower, to the extent that such a
19 loan is secured by property which is eligible for
20 the High Impact Business Investment Credit. To
21 determine the portion of a loan or loans that is
22 secured by property eligible for a Section 201(i)
23 investment credit to the borrower, the entire
24 principal amount of the loan or loans between the
25 taxpayer and the borrower should be divided into the
26 basis of the Section 201(i) investment credit
27 property which secures the loan or loans, using for
28 this purpose the original basis of such property on
29 the date that it was placed in service in a
30 federally designated Foreign Trade Zone or Sub-Zone
31 located in Illinois. No taxpayer that is eligible
32 for the deduction provided in subparagraph (M) of
33 paragraph (2) of this subsection shall be eligible
34 for the deduction provided under this subparagraph
HB1120 Enrolled -13- LRB9100524PTpkA
1 (M-1). The subtraction modification available to
2 taxpayers in any year under this subsection shall be
3 that portion of the total interest paid by the
4 borrower with respect to such loan attributable to
5 the eligible property as calculated under the
6 previous sentence;
7 (N) Two times any contribution made during the
8 taxable year to a designated zone organization to
9 the extent that the contribution (i) qualifies as a
10 charitable contribution under subsection (c) of
11 Section 170 of the Internal Revenue Code and (ii)
12 must, by its terms, be used for a project approved
13 by the Department of Commerce and Community Affairs
14 under Section 11 of the Illinois Enterprise Zone
15 Act;
16 (O) An amount equal to: (i) 85% for taxable
17 years ending on or before December 31, 1992, or, a
18 percentage equal to the percentage allowable under
19 Section 243(a)(1) of the Internal Revenue Code of
20 1986 for taxable years ending after December 31,
21 1992, of the amount by which dividends included in
22 taxable income and received from a corporation that
23 is not created or organized under the laws of the
24 United States or any state or political subdivision
25 thereof, including, for taxable years ending on or
26 after December 31, 1988, dividends received or
27 deemed received or paid or deemed paid under
28 Sections 951 through 964 of the Internal Revenue
29 Code, exceed the amount of the modification provided
30 under subparagraph (G) of paragraph (2) of this
31 subsection (b) which is related to such dividends;
32 plus (ii) 100% of the amount by which dividends,
33 included in taxable income and received, including,
34 for taxable years ending on or after December 31,
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1 1988, dividends received or deemed received or paid
2 or deemed paid under Sections 951 through 964 of the
3 Internal Revenue Code, from any such corporation
4 specified in clause (i) that would but for the
5 provisions of Section 1504 (b) (3) of the Internal
6 Revenue Code be treated as a member of the
7 affiliated group which includes the dividend
8 recipient, exceed the amount of the modification
9 provided under subparagraph (G) of paragraph (2) of
10 this subsection (b) which is related to such
11 dividends;
12 (P) An amount equal to any contribution made
13 to a job training project established pursuant to
14 the Tax Increment Allocation Redevelopment Act; and
15 (Q) An amount equal to the amount of the
16 deduction used to compute the federal income tax
17 credit for restoration of substantial amounts held
18 under claim of right for the taxable year pursuant
19 to Section 1341 of the Internal Revenue Code of
20 1986.
21 (3) Special rule. For purposes of paragraph (2)
22 (A), "gross income" in the case of a life insurance
23 company, for tax years ending on and after December 31,
24 1994, shall mean the gross investment income for the
25 taxable year.
26 (c) Trusts and estates.
27 (1) In general. In the case of a trust or estate,
28 base income means an amount equal to the taxpayer's
29 taxable income for the taxable year as modified by
30 paragraph (2).
31 (2) Modifications. Subject to the provisions of
32 paragraph (3), the taxable income referred to in
33 paragraph (1) shall be modified by adding thereto the sum
34 of the following amounts:
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1 (A) An amount equal to all amounts paid or
2 accrued to the taxpayer as interest or dividends
3 during the taxable year to the extent excluded from
4 gross income in the computation of taxable income;
5 (B) In the case of (i) an estate, $600; (ii) a
6 trust which, under its governing instrument, is
7 required to distribute all of its income currently,
8 $300; and (iii) any other trust, $100, but in each
9 such case, only to the extent such amount was
10 deducted in the computation of taxable income;
11 (C) An amount equal to the amount of tax
12 imposed by this Act to the extent deducted from
13 gross income in the computation of taxable income
14 for the taxable year;
15 (D) The amount of any net operating loss
16 deduction taken in arriving at taxable income, other
17 than a net operating loss carried forward from a
18 taxable year ending prior to December 31, 1986;
19 (E) For taxable years in which a net operating
20 loss carryback or carryforward from a taxable year
21 ending prior to December 31, 1986 is an element of
22 taxable income under paragraph (1) of subsection (e)
23 or subparagraph (E) of paragraph (2) of subsection
24 (e), the amount by which addition modifications
25 other than those provided by this subparagraph (E)
26 exceeded subtraction modifications in such taxable
27 year, with the following limitations applied in the
28 order that they are listed:
29 (i) the addition modification relating to
30 the net operating loss carried back or forward
31 to the taxable year from any taxable year
32 ending prior to December 31, 1986 shall be
33 reduced by the amount of addition modification
34 under this subparagraph (E) which related to
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1 that net operating loss and which was taken
2 into account in calculating the base income of
3 an earlier taxable year, and
4 (ii) the addition modification relating
5 to the net operating loss carried back or
6 forward to the taxable year from any taxable
7 year ending prior to December 31, 1986 shall
8 not exceed the amount of such carryback or
9 carryforward;
10 For taxable years in which there is a net
11 operating loss carryback or carryforward from more
12 than one other taxable year ending prior to December
13 31, 1986, the addition modification provided in this
14 subparagraph (E) shall be the sum of the amounts
15 computed independently under the preceding
16 provisions of this subparagraph (E) for each such
17 taxable year;
18 (F) For taxable years ending on or after
19 January 1, 1989, an amount equal to the tax deducted
20 pursuant to Section 164 of the Internal Revenue Code
21 if the trust or estate is claiming the same tax for
22 purposes of the Illinois foreign tax credit under
23 Section 601 of this Act;
24 (G) An amount equal to the amount of the
25 capital gain deduction allowable under the Internal
26 Revenue Code, to the extent deducted from gross
27 income in the computation of taxable income; and
28 (G-5) For taxable years ending after December
29 31, 1997, an amount equal to any eligible
30 remediation costs that the trust or estate deducted
31 in computing adjusted gross income and for which the
32 trust or estate claims a credit under subsection (l)
33 of Section 201;
34 and by deducting from the total so obtained the sum of
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1 the following amounts:
2 (H) An amount equal to all amounts included in
3 such total pursuant to the provisions of Sections
4 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and
5 408 of the Internal Revenue Code or included in such
6 total as distributions under the provisions of any
7 retirement or disability plan for employees of any
8 governmental agency or unit, or retirement payments
9 to retired partners, which payments are excluded in
10 computing net earnings from self employment by
11 Section 1402 of the Internal Revenue Code and
12 regulations adopted pursuant thereto;
13 (I) The valuation limitation amount;
14 (J) An amount equal to the amount of any tax
15 imposed by this Act which was refunded to the
16 taxpayer and included in such total for the taxable
17 year;
18 (K) An amount equal to all amounts included in
19 taxable income as modified by subparagraphs (A),
20 (B), (C), (D), (E), (F) and (G) which are exempt
21 from taxation by this State either by reason of its
22 statutes or Constitution or by reason of the
23 Constitution, treaties or statutes of the United
24 States; provided that, in the case of any statute of
25 this State that exempts income derived from bonds or
26 other obligations from the tax imposed under this
27 Act, the amount exempted shall be the interest net
28 of bond premium amortization;
29 (L) With the exception of any amounts
30 subtracted under subparagraph (K), an amount equal
31 to the sum of all amounts disallowed as deductions
32 by Sections 171(a) (2) and 265(a)(2) of the Internal
33 Revenue Code, as now or hereafter amended, and all
34 amounts of expenses allocable to interest and
HB1120 Enrolled -18- LRB9100524PTpkA
1 disallowed as deductions by Section 265(1) of the
2 Internal Revenue Code of 1954, as now or hereafter
3 amended;
4 (M) An amount equal to those dividends
5 included in such total which were paid by a
6 corporation which conducts business operations in an
7 Enterprise Zone or zones created under the Illinois
8 Enterprise Zone Act and conducts substantially all
9 of its operations in an Enterprise Zone or Zones;
10 (N) An amount equal to any contribution made
11 to a job training project established pursuant to
12 the Tax Increment Allocation Redevelopment Act;
13 (O) An amount equal to those dividends
14 included in such total that were paid by a
15 corporation that conducts business operations in a
16 federally designated Foreign Trade Zone or Sub-Zone
17 and that is designated a High Impact Business
18 located in Illinois; provided that dividends
19 eligible for the deduction provided in subparagraph
20 (M) of paragraph (2) of this subsection shall not be
21 eligible for the deduction provided under this
22 subparagraph (O); and
23 (P) An amount equal to the amount of the
24 deduction used to compute the federal income tax
25 credit for restoration of substantial amounts held
26 under claim of right for the taxable year pursuant
27 to Section 1341 of the Internal Revenue Code of
28 1986; and.
29 (Q) For taxable year 1999 and thereafter, an
30 amount equal to the amount of any (i) distributions,
31 to the extent includible in gross income for federal
32 income tax purposes, made to the taxpayer because of
33 his or her status as a victim of persecution for
34 racial or religious reasons by Nazi Germany or any
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1 other Axis regime or as an heir of the victim and
2 (ii) items of income, to the extent includible in
3 gross income for federal income tax purposes,
4 attributable to, derived from or in any way related
5 to assets stolen from, hidden from, or otherwise
6 lost to a victim of persecution for racial or
7 religious reasons by Nazi Germany or any other Axis
8 regime immediately prior to, during, and immediately
9 after World War II, including, but not limited to,
10 interest on the proceeds receivable as insurance
11 under policies issued to a victim of persecution for
12 racial or religious reasons by Nazi Germany or any
13 other Axis regime by European insurance companies
14 immediately prior to and during World War II;
15 provided, however, this subtraction from federal
16 adjusted gross income does not apply to assets
17 acquired with such assets or with the proceeds from
18 the sale of such assets; provided, further, this
19 paragraph shall only apply to a taxpayer who was the
20 first recipient of such assets after their recovery
21 and who is a victim of persecution for racial or
22 religious reasons by Nazi Germany or any other Axis
23 regime or as an heir of the victim. The amount of
24 and the eligibility for any public assistance,
25 benefit, or similar entitlement is not affected by
26 the inclusion of items (i) and (ii) of this
27 paragraph in gross income for federal income tax
28 purposes. This paragraph is exempt from the
29 provisions of Section 250.
30 (3) Limitation. The amount of any modification
31 otherwise required under this subsection shall, under
32 regulations prescribed by the Department, be adjusted by
33 any amounts included therein which were properly paid,
34 credited, or required to be distributed, or permanently
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1 set aside for charitable purposes pursuant to Internal
2 Revenue Code Section 642(c) during the taxable year.
3 (d) Partnerships.
4 (1) In general. In the case of a partnership, base
5 income means an amount equal to the taxpayer's taxable
6 income for the taxable year as modified by paragraph (2).
7 (2) Modifications. The taxable income referred to
8 in paragraph (1) shall be modified by adding thereto the
9 sum of the following amounts:
10 (A) An amount equal to all amounts paid or
11 accrued to the taxpayer as interest or dividends
12 during the taxable year to the extent excluded from
13 gross income in the computation of taxable income;
14 (B) An amount equal to the amount of tax
15 imposed by this Act to the extent deducted from
16 gross income for the taxable year; and
17 (C) The amount of deductions allowed to the
18 partnership pursuant to Section 707 (c) of the
19 Internal Revenue Code in calculating its taxable
20 income; and
21 (D) An amount equal to the amount of the
22 capital gain deduction allowable under the Internal
23 Revenue Code, to the extent deducted from gross
24 income in the computation of taxable income;
25 and by deducting from the total so obtained the following
26 amounts:
27 (E) The valuation limitation amount;
28 (F) An amount equal to the amount of any tax
29 imposed by this Act which was refunded to the
30 taxpayer and included in such total for the taxable
31 year;
32 (G) An amount equal to all amounts included in
33 taxable income as modified by subparagraphs (A),
34 (B), (C) and (D) which are exempt from taxation by
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1 this State either by reason of its statutes or
2 Constitution or by reason of the Constitution,
3 treaties or statutes of the United States; provided
4 that, in the case of any statute of this State that
5 exempts income derived from bonds or other
6 obligations from the tax imposed under this Act, the
7 amount exempted shall be the interest net of bond
8 premium amortization;
9 (H) Any income of the partnership which
10 constitutes personal service income as defined in
11 Section 1348 (b) (1) of the Internal Revenue Code
12 (as in effect December 31, 1981) or a reasonable
13 allowance for compensation paid or accrued for
14 services rendered by partners to the partnership,
15 whichever is greater;
16 (I) An amount equal to all amounts of income
17 distributable to an entity subject to the Personal
18 Property Tax Replacement Income Tax imposed by
19 subsections (c) and (d) of Section 201 of this Act
20 including amounts distributable to organizations
21 exempt from federal income tax by reason of Section
22 501(a) of the Internal Revenue Code;
23 (J) With the exception of any amounts
24 subtracted under subparagraph (G), an amount equal
25 to the sum of all amounts disallowed as deductions
26 by Sections 171(a) (2), and 265(2) of the Internal
27 Revenue Code of 1954, as now or hereafter amended,
28 and all amounts of expenses allocable to interest
29 and disallowed as deductions by Section 265(1) of
30 the Internal Revenue Code, as now or hereafter
31 amended;
32 (K) An amount equal to those dividends
33 included in such total which were paid by a
34 corporation which conducts business operations in an
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1 Enterprise Zone or zones created under the Illinois
2 Enterprise Zone Act, enacted by the 82nd General
3 Assembly, and which does not conduct such operations
4 other than in an Enterprise Zone or Zones;
5 (L) An amount equal to any contribution made
6 to a job training project established pursuant to
7 the Real Property Tax Increment Allocation
8 Redevelopment Act;
9 (M) An amount equal to those dividends
10 included in such total that were paid by a
11 corporation that conducts business operations in a
12 federally designated Foreign Trade Zone or Sub-Zone
13 and that is designated a High Impact Business
14 located in Illinois; provided that dividends
15 eligible for the deduction provided in subparagraph
16 (K) of paragraph (2) of this subsection shall not be
17 eligible for the deduction provided under this
18 subparagraph (M); and
19 (N) An amount equal to the amount of the
20 deduction used to compute the federal income tax
21 credit for restoration of substantial amounts held
22 under claim of right for the taxable year pursuant
23 to Section 1341 of the Internal Revenue Code of
24 1986.
25 (e) Gross income; adjusted gross income; taxable income.
26 (1) In general. Subject to the provisions of
27 paragraph (2) and subsection (b) (3), for purposes of
28 this Section and Section 803(e), a taxpayer's gross
29 income, adjusted gross income, or taxable income for the
30 taxable year shall mean the amount of gross income,
31 adjusted gross income or taxable income properly
32 reportable for federal income tax purposes for the
33 taxable year under the provisions of the Internal Revenue
34 Code. Taxable income may be less than zero. However, for
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1 taxable years ending on or after December 31, 1986, net
2 operating loss carryforwards from taxable years ending
3 prior to December 31, 1986, may not exceed the sum of
4 federal taxable income for the taxable year before net
5 operating loss deduction, plus the excess of addition
6 modifications over subtraction modifications for the
7 taxable year. For taxable years ending prior to December
8 31, 1986, taxable income may never be an amount in excess
9 of the net operating loss for the taxable year as defined
10 in subsections (c) and (d) of Section 172 of the Internal
11 Revenue Code, provided that when taxable income of a
12 corporation (other than a Subchapter S corporation),
13 trust, or estate is less than zero and addition
14 modifications, other than those provided by subparagraph
15 (E) of paragraph (2) of subsection (b) for corporations
16 or subparagraph (E) of paragraph (2) of subsection (c)
17 for trusts and estates, exceed subtraction modifications,
18 an addition modification must be made under those
19 subparagraphs for any other taxable year to which the
20 taxable income less than zero (net operating loss) is
21 applied under Section 172 of the Internal Revenue Code or
22 under subparagraph (E) of paragraph (2) of this
23 subsection (e) applied in conjunction with Section 172 of
24 the Internal Revenue Code.
25 (2) Special rule. For purposes of paragraph (1) of
26 this subsection, the taxable income properly reportable
27 for federal income tax purposes shall mean:
28 (A) Certain life insurance companies. In the
29 case of a life insurance company subject to the tax
30 imposed by Section 801 of the Internal Revenue Code,
31 life insurance company taxable income, plus the
32 amount of distribution from pre-1984 policyholder
33 surplus accounts as calculated under Section 815a of
34 the Internal Revenue Code;
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1 (B) Certain other insurance companies. In the
2 case of mutual insurance companies subject to the
3 tax imposed by Section 831 of the Internal Revenue
4 Code, insurance company taxable income;
5 (C) Regulated investment companies. In the
6 case of a regulated investment company subject to
7 the tax imposed by Section 852 of the Internal
8 Revenue Code, investment company taxable income;
9 (D) Real estate investment trusts. In the
10 case of a real estate investment trust subject to
11 the tax imposed by Section 857 of the Internal
12 Revenue Code, real estate investment trust taxable
13 income;
14 (E) Consolidated corporations. In the case of
15 a corporation which is a member of an affiliated
16 group of corporations filing a consolidated income
17 tax return for the taxable year for federal income
18 tax purposes, taxable income determined as if such
19 corporation had filed a separate return for federal
20 income tax purposes for the taxable year and each
21 preceding taxable year for which it was a member of
22 an affiliated group. For purposes of this
23 subparagraph, the taxpayer's separate taxable income
24 shall be determined as if the election provided by
25 Section 243(b) (2) of the Internal Revenue Code had
26 been in effect for all such years;
27 (F) Cooperatives. In the case of a
28 cooperative corporation or association, the taxable
29 income of such organization determined in accordance
30 with the provisions of Section 1381 through 1388 of
31 the Internal Revenue Code;
32 (G) Subchapter S corporations. In the case
33 of: (i) a Subchapter S corporation for which there
34 is in effect an election for the taxable year under
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1 Section 1362 of the Internal Revenue Code, the
2 taxable income of such corporation determined in
3 accordance with Section 1363(b) of the Internal
4 Revenue Code, except that taxable income shall take
5 into account those items which are required by
6 Section 1363(b)(1) of the Internal Revenue Code to
7 be separately stated; and (ii) a Subchapter S
8 corporation for which there is in effect a federal
9 election to opt out of the provisions of the
10 Subchapter S Revision Act of 1982 and have applied
11 instead the prior federal Subchapter S rules as in
12 effect on July 1, 1982, the taxable income of such
13 corporation determined in accordance with the
14 federal Subchapter S rules as in effect on July 1,
15 1982; and
16 (H) Partnerships. In the case of a
17 partnership, taxable income determined in accordance
18 with Section 703 of the Internal Revenue Code,
19 except that taxable income shall take into account
20 those items which are required by Section 703(a)(1)
21 to be separately stated but which would be taken
22 into account by an individual in calculating his
23 taxable income.
24 (f) Valuation limitation amount.
25 (1) In general. The valuation limitation amount
26 referred to in subsections (a) (2) (G), (c) (2) (I) and
27 (d)(2) (E) is an amount equal to:
28 (A) The sum of the pre-August 1, 1969
29 appreciation amounts (to the extent consisting of
30 gain reportable under the provisions of Section 1245
31 or 1250 of the Internal Revenue Code) for all
32 property in respect of which such gain was reported
33 for the taxable year; plus
34 (B) The lesser of (i) the sum of the
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1 pre-August 1, 1969 appreciation amounts (to the
2 extent consisting of capital gain) for all property
3 in respect of which such gain was reported for
4 federal income tax purposes for the taxable year, or
5 (ii) the net capital gain for the taxable year,
6 reduced in either case by any amount of such gain
7 included in the amount determined under subsection
8 (a) (2) (F) or (c) (2) (H).
9 (2) Pre-August 1, 1969 appreciation amount.
10 (A) If the fair market value of property
11 referred to in paragraph (1) was readily
12 ascertainable on August 1, 1969, the pre-August 1,
13 1969 appreciation amount for such property is the
14 lesser of (i) the excess of such fair market value
15 over the taxpayer's basis (for determining gain) for
16 such property on that date (determined under the
17 Internal Revenue Code as in effect on that date), or
18 (ii) the total gain realized and reportable for
19 federal income tax purposes in respect of the sale,
20 exchange or other disposition of such property.
21 (B) If the fair market value of property
22 referred to in paragraph (1) was not readily
23 ascertainable on August 1, 1969, the pre-August 1,
24 1969 appreciation amount for such property is that
25 amount which bears the same ratio to the total gain
26 reported in respect of the property for federal
27 income tax purposes for the taxable year, as the
28 number of full calendar months in that part of the
29 taxpayer's holding period for the property ending
30 July 31, 1969 bears to the number of full calendar
31 months in the taxpayer's entire holding period for
32 the property.
33 (C) The Department shall prescribe such
34 regulations as may be necessary to carry out the
HB1120 Enrolled -27- LRB9100524PTpkA
1 purposes of this paragraph.
2 (g) Double deductions. Unless specifically provided
3 otherwise, nothing in this Section shall permit the same item
4 to be deducted more than once.
5 (h) Legislative intention. Except as expressly provided
6 by this Section there shall be no modifications or
7 limitations on the amounts of income, gain, loss or deduction
8 taken into account in determining gross income, adjusted
9 gross income or taxable income for federal income tax
10 purposes for the taxable year, or in the amount of such items
11 entering into the computation of base income and net income
12 under this Act for such taxable year, whether in respect of
13 property values as of August 1, 1969 or otherwise.
14 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
15 89-418, eff. 11-15-95; 89-460, eff. 5-24-96; 89-626, eff.
16 8-9-96; 90-491, eff. 1-1-98; 90-717, eff. 8-7-98; 90-770,
17 eff. 8-14-98; revised 9-21-98.)
18 Section 10. The Illinois Public Aid Code is amended by
19 changing Sections 3-1.2, 3-5, 4-1.6, 4-2, 5-2, 5-4, 6-1.2,
20 and 6-2 as follows:
21 (305 ILCS 5/3-1.2) (from Ch. 23, par. 3-1.2)
22 Sec. 3-1.2. Need. Income available to the person, when
23 added to contributions in money, substance, or services from
24 other sources, including contributions from legally
25 responsible relatives, must be insufficient to equal the
26 grant amount established by Department regulation for such
27 person.
28 In determining earned income to be taken into account,
29 consideration shall be given to any expenses reasonably
30 attributable to the earning of such income. If federal law or
31 regulations permit or require exemption of earned or other
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1 income and resources, the Illinois Department shall provide
2 by rule and regulation that the amount of income to be
3 disregarded be increased (1) to the maximum extent so
4 required and (2) to the maximum extent permitted by federal
5 law or regulation in effect as of the date this Amendatory
6 Act becomes law. The Illinois Department may also provide by
7 rule and regulation that the amount of resources to be
8 disregarded be increased to the maximum extent so permitted
9 or required.
10 In determining the resources of an individual or any
11 dependents, the Department shall exclude from consideration
12 the value of funeral and burial spaces, grave markers and
13 other funeral and burial merchandise, funeral and burial
14 insurance the proceeds of which can only be used to pay the
15 funeral and burial expenses of the insured and funds
16 specifically set aside for the funeral and burial
17 arrangements of the individual or his or her dependents,
18 including prepaid funeral and burial plans, to the same
19 extent that such items are excluded from consideration under
20 the federal Supplemental Security Income program.
21 The homestead shall be exempt from consideration except
22 to the extent that it meets the income and shelter needs of
23 the person. "Homestead" means the dwelling house and
24 contiguous real estate owned and occupied by the person,
25 regardless of its value.
26 Occasional or irregular gifts in cash, goods or services
27 from persons who are not legally responsible relatives which
28 are of nominal value or which do not have significant effect
29 in meeting essential requirements shall be disregarded. The
30 eligibility of any applicant for or recipient of public aid
31 under this Article is not affected by the payment of any
32 grant under the "Senior Citizens and Disabled Persons
33 Property Tax Relief and Pharmaceutical Assistance Act" or any
34 distributions or items of income described under subparagraph
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1 (X) of paragraph (2) of subsection (a) of Section 203 of the
2 Illinois Income Tax Act.
3 The Illinois Department may, after appropriate
4 investigation, establish and implement a consolidated
5 standard to determine need and eligibility for and amount of
6 benefits under this Article or a uniform cash supplement to
7 the federal Supplemental Security Income program for all or
8 any part of the then current recipients under this Article;
9 provided, however, that the establishment or implementation
10 of such a standard or supplement shall not result in
11 reductions in benefits under this Article for the then
12 current recipients of such benefits.
13 (Source: P.A. 84-1308.)
14 (305 ILCS 5/3-5) (from Ch. 23, par. 3-5)
15 Sec. 3-5. Amount of aid. The amount and nature of
16 financial aid granted to or in behalf of aged, blind, or
17 disabled persons shall be determined in accordance with the
18 standards, grant amounts, rules and regulations of the
19 Illinois Department. Due regard shall be given to the
20 requirements and conditions existing in each case, and to the
21 amount of property owned and the income, money contributions,
22 and other support, and resources received or obtainable by
23 the person, from whatever source. However, the amount and
24 nature of any financial aid is not affected by the payment of
25 any grant under the "Senior Citizens and Disabled Persons
26 Property Tax Relief and Pharmaceutical Assistance Act" or any
27 distributions or items of income described under subparagraph
28 (X) of paragraph (2) of subsection (a) of Section 203 of the
29 Illinois Income Tax Act. The aid shall be sufficient, when
30 added to all other income, money contributions and support,
31 to provide the person with a grant in the amount established
32 by Department regulation for such a person, based upon
33 standards providing a livelihood compatible with health and
HB1120 Enrolled -30- LRB9100524PTpkA
1 well-being.
2 (Source: P.A. 84-832.)
3 (305 ILCS 5/4-1.6) (from Ch. 23, par. 4-1.6)
4 Sec. 4-1.6. Need. Income available to the family as
5 defined by the Illinois Department by rule, or to the child
6 in the case of a child removed from his or her home, when
7 added to contributions in money, substance or services from
8 other sources, including income available from parents absent
9 from the home or from a stepparent, contributions made for
10 the benefit of the parent or other persons necessary to
11 provide care and supervision to the child, and contributions
12 from legally responsible relatives, must be insufficient to
13 equal the grant amount established by Department regulation
14 for such a person.
15 In considering income to be taken into account,
16 consideration shall be given to any expenses reasonably
17 attributable to the earning of such income. The Illinois
18 Department may also, subject to such limitations as may be
19 prescribed by federal law or regulation, permit all or any
20 portion of earned or other income to be set aside for the
21 future identifiable needs of a child. If federal law or
22 regulations permit or require exemption of other income of
23 recipients, the Illinois Department may provide by rule and
24 regulation for the exemptions thus permitted or required.
25 The eligibility of any applicant for or recipient of public
26 aid under this Article is not affected by the payment of any
27 grant under the "Senior Citizens and Disabled Persons
28 Property Tax Relief and Pharmaceutical Assistance Act" or any
29 distributions or items of income described under subparagraph
30 (X) of paragraph (2) of subsection (a) of Section 203 of the
31 Illinois Income Tax Act.
32 The Illinois Department may, by rule, set forth criteria
33 under which an assistance unit is ineligible for cash
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1 assistance under this Article for a specified number of
2 months due to the receipt of a lump sum payment.
3 (Source: P.A. 90-17, eff. 7-1-97.)
4 (305 ILCS 5/4-2) (from Ch. 23, par. 4-2)
5 Sec. 4-2. Amount of aid.
6 (a) The amount and nature of financial aid shall be
7 determined in accordance with the grant amounts, rules and
8 regulations of the Illinois Department. Due regard shall be
9 given to the self-sufficiency requirements of the family and
10 to the income, money contributions and other support and
11 resources available, from whatever source. Beginning July 1,
12 1992, the supplementary grants previously paid under this
13 Section shall no longer be paid. However, the amount and
14 nature of any financial aid is not affected by the payment of
15 any grant under the "Senior Citizens and Disabled Persons
16 Property Tax Relief and Pharmaceutical Assistance Act" or any
17 distributions or items of income described under subparagraph
18 (X) of paragraph (2) of subsection (a) of Section 203 of the
19 Illinois Income Tax Act. The aid shall be sufficient, when
20 added to all other income, money contributions and support to
21 provide the family with a grant in the amount established by
22 Department regulation.
23 (b) The Illinois Department may conduct special
24 projects, which may be known as Grant Diversion Projects,
25 under which recipients of financial aid under this Article
26 are placed in jobs and their grants are diverted to the
27 employer who in turn makes payments to the recipients in the
28 form of salary or other employment benefits. The Illinois
29 Department shall by rule specify the terms and conditions of
30 such Grant Diversion Projects. Such projects shall take into
31 consideration and be coordinated with the programs
32 administered under the Illinois Emergency Employment
33 Development Act.
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1 (c) The amount and nature of the financial aid for a
2 child requiring care outside his own home shall be determined
3 in accordance with the rules and regulations of the Illinois
4 Department, with due regard to the needs and requirements of
5 the child in the foster home or institution in which he has
6 been placed.
7 (d) If the Department establishes grants for family
8 units consisting exclusively of a pregnant woman with no
9 dependent child or including her husband if living with her,
10 the grant amount for such a unit shall be equal to the grant
11 amount for an assistance unit consisting of one adult, or 2
12 persons if the husband is included. Other than as herein
13 described, an unborn child shall not be counted in
14 determining the size of an assistance unit or for calculating
15 grants.
16 Payments for basic maintenance requirements of a child or
17 children and the relative with whom the child or children are
18 living shall be prescribed, by rule, by the Illinois
19 Department.
20 These grants may be increased in the following circumstances:
21 1. If the child is living with both parents or with
22 persons standing in the relationship of parents, and if
23 the grant is necessitated because of the unemployment or
24 insufficient earnings of the parent or parents and
25 neither parent is receiving benefits under "The
26 Unemployment Compensation Act", approved June 30, 1937,
27 as amended, the maximum may be increased by not more than
28 $25.
29 2. If a child is age 13 or over, the maximum may be
30 increased by not more than $15.
31 The allowances provided under Article IX for recipients
32 participating in the training and rehabilitation programs
33 shall be in addition to the maximum payments established in
34 this Section.
HB1120 Enrolled -33- LRB9100524PTpkA
1 Grants under this Article shall not be supplemented by
2 General Assistance provided under Article VI.
3 (e) Grants shall be paid to the parent or other person
4 with whom the child or children are living, except for such
5 amount as is paid in behalf of the child or his parent or
6 other relative to other persons or agencies pursuant to this
7 Code or the rules and regulations of the Illinois Department.
8 (f) An assistance unit, receiving financial aid under
9 this Article or temporarily ineligible to receive aid under
10 this Article under a penalty imposed by the Illinois
11 Department for failure to comply with the eligibility
12 requirements or that voluntarily requests termination of
13 financial assistance under this Article and becomes
14 subsequently eligible for assistance within 9 months, shall
15 not receive any increase in the amount of aid solely on
16 account of the birth of a child; except that an increase is
17 not prohibited when the birth is (i) of a child of a pregnant
18 woman who became eligible for aid under this Article during
19 the pregnancy, or (ii) of a child born within 10 months after
20 the date of implementation of this subsection, or (iii) of a
21 child conceived after a family became ineligible for
22 assistance due to income or marriage and at least 3 months of
23 ineligibility expired before any reapplication for
24 assistance. This subsection does not, however, prevent a
25 unit from receiving a general increase in the amount of aid
26 that is provided to all recipients of aid under this Article.
27 The Illinois Department is authorized to transfer funds,
28 and shall use any budgetary savings attributable to not
29 increasing the grants due to the births of additional
30 children, to supplement existing funding for employment and
31 training services for recipients of aid under this Article
32 IV. The Illinois Department shall target, to the extent the
33 supplemental funding allows, employment and training services
34 to the families who do not receive a grant increase after the
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1 birth of a child. In addition, the Illinois Department shall
2 provide, to the extent the supplemental funding allows, such
3 families with up to 24 months of transitional child care
4 pursuant to Illinois Department rules. All remaining
5 supplemental funds shall be used for employment and training
6 services or transitional child care support.
7 In making the transfers authorized by this subsection,
8 the Illinois Department shall first determine, pursuant to
9 regulations adopted by the Illinois Department for this
10 purpose, the amount of savings attributable to not increasing
11 the grants due to the births of additional children.
12 Transfers may be made from General Revenue Fund
13 appropriations for distributive purposes authorized by
14 Article IV of this Code only to General Revenue Fund
15 appropriations for employability development services
16 including operating and administrative costs and related
17 distributive purposes under Article IXA of this Code. The
18 Director, with the approval of the Governor, shall certify
19 the amount and affected line item appropriations to the State
20 Comptroller.
21 The Illinois Department shall apply for all waivers of
22 federal law and regulations necessary to implement this
23 subsection; implementation of this subsection is contingent
24 on the Illinois Department receiving all necessary federal
25 waivers. The Illinois Department may implement this
26 subsection through the use of emergency rules in accordance
27 with Section 5-45 of the Illinois Administrative Procedure
28 Act. For purposes of the Illinois Administrative Procedure
29 Act, the adoption of rules to implement this subsection shall
30 be considered an emergency and necessary for the public
31 interest, safety, and welfare.
32 Nothing in this subsection shall be construed to prohibit
33 the Illinois Department from using funds under this Article
34 IV to provide assistance in the form of vouchers that may be
HB1120 Enrolled -35- LRB9100524PTpkA
1 used to pay for goods and services deemed by the Illinois
2 Department, by rule, as suitable for the care of the child
3 such as diapers, clothing, school supplies, and cribs.
4 (g) (Blank).
5 (h) Notwithstanding any other provision of this Code,
6 the Illinois Department is authorized to reduce payment
7 levels used to determine cash grants under this Article after
8 December 31 of any fiscal year if the Illinois Department
9 determines that the caseload upon which the appropriations
10 for the current fiscal year are based have increased by more
11 than 5% and the appropriation is not sufficient to ensure
12 that cash benefits under this Article do not exceed the
13 amounts appropriated for those cash benefits. Reductions in
14 payment levels may be accomplished by emergency rule under
15 Section 5-45 of the Illinois Administrative Procedure Act,
16 except that the limitation on the number of emergency rules
17 that may be adopted in a 24-month period shall not apply and
18 the provisions of Sections 5-115 and 5-125 of the Illinois
19 Administrative Procedure Act shall not apply. Increases in
20 payment levels shall be accomplished only in accordance with
21 Section 5-40 of the Illinois Administrative Procedure Act.
22 Before any rule to increase payment levels promulgated under
23 this Section shall become effective, a joint resolution
24 approving the rule must be adopted by a roll call vote by a
25 majority of the members elected to each chamber of the
26 General Assembly.
27 (Source: P.A. 89-6, eff. 3-6-95; 89-193, eff. 7-21-95;
28 89-641, eff. 8-9-96; 90-17, eff. 7-1-97; 90-372, eff. 7-1-98;
29 90-655, eff. 7-30-98.)
30 (305 ILCS 5/5-2) (from Ch. 23, par. 5-2)
31 Sec. 5-2. Classes of Persons Eligible. Medical
32 assistance under this Article shall be available to any of
33 the following classes of persons in respect to whom a plan
HB1120 Enrolled -36- LRB9100524PTpkA
1 for coverage has been submitted to the Governor by the
2 Illinois Department and approved by him:
3 1. Recipients of basic maintenance grants under Articles
4 III and IV.
5 2. Persons otherwise eligible for basic maintenance
6 under Articles III and IV but who fail to qualify thereunder
7 on the basis of need, and who have insufficient income and
8 resources to meet the costs of necessary medical care,
9 including but not limited to, all persons who would be
10 determined eligible for such basic maintenance under Article
11 IV by disregarding the maximum earned income permitted by
12 federal law.
13 3. Persons who would otherwise qualify for Aid to the
14 Medically Indigent under Article VII.
15 4. Persons not eligible under any of the preceding
16 paragraphs who fall sick, are injured, or die, not having
17 sufficient money, property or other resources to meet the
18 costs of necessary medical care or funeral and burial
19 expenses.
20 5. (a) Women during pregnancy, after the fact of
21 pregnancy has been determined by medical diagnosis, and
22 during the 60-day period beginning on the last day of the
23 pregnancy, together with their infants and children born
24 after September 30, 1983, whose income and resources are
25 insufficient to meet the costs of necessary medical care
26 to the maximum extent possible under Title XIX of the
27 Federal Social Security Act.
28 (b) The Illinois Department and the Governor shall
29 provide a plan for coverage of the persons eligible under
30 paragraph 5(a) by April 1, 1990. Such plan shall provide
31 ambulatory prenatal care to pregnant women during a
32 presumptive eligibility period and establish an income
33 eligibility standard that is equal to 133% of the nonfarm
34 income official poverty line, as defined by the federal
HB1120 Enrolled -37- LRB9100524PTpkA
1 Office of Management and Budget and revised annually in
2 accordance with Section 673(2) of the Omnibus Budget
3 Reconciliation Act of 1981, applicable to families of the
4 same size, provided that costs incurred for medical care
5 are not taken into account in determining such income
6 eligibility.
7 (c) The Illinois Department may conduct a
8 demonstration in at least one county that will provide
9 medical assistance to pregnant women, together with their
10 infants and children up to one year of age, where the
11 income eligibility standard is set up to 185% of the
12 nonfarm income official poverty line, as defined by the
13 federal Office of Management and Budget. The Illinois
14 Department shall seek and obtain necessary authorization
15 provided under federal law to implement such a
16 demonstration. Such demonstration may establish resource
17 standards that are not more restrictive than those
18 established under Article IV of this Code.
19 6. Persons under the age of 18 who fail to qualify as
20 dependent under Article IV and who have insufficient income
21 and resources to meet the costs of necessary medical care to
22 the maximum extent permitted under Title XIX of the Federal
23 Social Security Act.
24 7. Persons who are 18 years of age or younger and would
25 qualify as disabled as defined under the Federal Supplemental
26 Security Income Program, provided medical service for such
27 persons would be eligible for Federal Financial
28 Participation, and provided the Illinois Department
29 determines that:
30 (a) the person requires a level of care provided by
31 a hospital, skilled nursing facility, or intermediate
32 care facility, as determined by a physician licensed to
33 practice medicine in all its branches;
34 (b) it is appropriate to provide such care outside
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1 of an institution, as determined by a physician licensed
2 to practice medicine in all its branches;
3 (c) the estimated amount which would be expended
4 for care outside the institution is not greater than the
5 estimated amount which would be expended in an
6 institution.
7 8. Persons who become ineligible for basic maintenance
8 assistance under Article IV of this Code in programs
9 administered by the Illinois Department due to employment
10 earnings and persons in assistance units comprised of adults
11 and children who become ineligible for basic maintenance
12 assistance under Article VI of this Code due to employment
13 earnings. The plan for coverage for this class of persons
14 shall:
15 (a) extend the medical assistance coverage for up
16 to 12 months following termination of basic maintenance
17 assistance; and
18 (b) offer persons who have initially received 6
19 months of the coverage provided in paragraph (a) above,
20 the option of receiving an additional 6 months of
21 coverage, subject to the following:
22 (i) such coverage shall be pursuant to
23 provisions of the federal Social Security Act;
24 (ii) such coverage shall include all services
25 covered while the person was eligible for basic
26 maintenance assistance;
27 (iii) no premium shall be charged for such
28 coverage; and
29 (iv) such coverage shall be suspended in the
30 event of a person's failure without good cause to
31 file in a timely fashion reports required for this
32 coverage under the Social Security Act and coverage
33 shall be reinstated upon the filing of such reports
34 if the person remains otherwise eligible.
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1 9. Persons with acquired immunodeficiency syndrome
2 (AIDS) or with AIDS-related conditions with respect to whom
3 there has been a determination that but for home or
4 community-based services such individuals would require the
5 level of care provided in an inpatient hospital, skilled
6 nursing facility or intermediate care facility the cost of
7 which is reimbursed under this Article. Assistance shall be
8 provided to such persons to the maximum extent permitted
9 under Title XIX of the Federal Social Security Act.
10 10. Participants in the long-term care insurance
11 partnership program established under the Partnership for
12 Long-Term Care Act who meet the qualifications for protection
13 of resources described in Section 25 of that Act.
14 The Illinois Department and the Governor shall provide a
15 plan for coverage of the persons eligible under paragraph 7
16 as soon as possible after July 1, 1984.
17 The eligibility of any such person for medical assistance
18 under this Article is not affected by the payment of any
19 grant under the Senior Citizens and Disabled Persons Property
20 Tax Relief and Pharmaceutical Assistance Act or any
21 distributions or items of income described under subparagraph
22 (X) of paragraph (2) of subsection (a) of Section 203 of the
23 Illinois Income Tax Act. The Department shall by rule
24 establish the amounts of assets to be disregarded in
25 determining eligibility for medical assistance, which shall
26 at a minimum equal the amounts to be disregarded under the
27 Federal Supplemental Security Income Program. The amount of
28 assets of a single person to be disregarded shall not be less
29 than $2,000, and the amount of assets of a married couple to
30 be disregarded shall not be less than $3,000.
31 To the extent permitted under federal law, any person
32 found guilty of a second violation of Article VIIIA shall be
33 ineligible for medical assistance under this Article, as
34 provided in Section 8A-8.
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1 The eligibility of any person for medical assistance
2 under this Article shall not be affected by the receipt by
3 the person of donations or benefits from fundraisers held for
4 the person in cases of serious illness, as long as neither
5 the person nor members of the person's family have actual
6 control over the donations or benefits or the disbursement of
7 the donations or benefits.
8 (Source: P.A. 89-525, eff. 7-19-96.)
9 (305 ILCS 5/5-4) (from Ch. 23, par. 5-4)
10 Sec. 5-4. Amount and nature of medical assistance. The
11 amount and nature of medical assistance shall be determined
12 by the County Departments in accordance with the standards,
13 rules, and regulations of the Illinois Department of Public
14 Aid, with due regard to the requirements and conditions in
15 each case, including contributions available from legally
16 responsible relatives. However, the amount and nature of
17 such medical assistance shall not be affected by the payment
18 of any grant under the Senior Citizens and Disabled Persons
19 Property Tax Relief and Pharmaceutical Assistance Act or any
20 distributions or items of income described under subparagraph
21 (X) of paragraph (2) of subsection (a) of Section 203 of the
22 Illinois Income Tax Act. The amount and nature of medical
23 assistance shall not be affected by the receipt of donations
24 or benefits from fundraisers in cases of serious illness, as
25 long as neither the person nor members of the person's family
26 have actual control over the donations or benefits or the
27 disbursement of the donations or benefits.
28 In determining the income and assets available to the
29 institutionalized spouse and to the community spouse, the
30 Illinois Department of Public Aid shall follow the procedures
31 established by federal law. The community spouse resource
32 allowance shall be established and maintained at the maximum
33 level permitted pursuant to Section 1924(f)(2) of the Social
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1 Security Act, as now or hereafter amended, or an amount set
2 after a fair hearing, whichever is greater. The monthly
3 maintenance allowance for the community spouse shall be
4 established and maintained at the maximum level permitted
5 pursuant to Section 1924(d)(3)(C) of the Social Security Act,
6 as now or hereafter amended. Subject to the approval of the
7 Secretary of the United States Department of Health and Human
8 Services, the provisions of this Section shall be extended to
9 persons who but for the provision of home or community-based
10 services under Section 4.02 of the Illinois Act on the Aging,
11 would require the level of care provided in an institution,
12 as is provided for in federal law.
13 The Department of Human Services shall notify in writing
14 each institutionalized spouse who is a recipient of medical
15 assistance under this Article, and each such person's
16 community spouse, of the changes in treatment of income and
17 resources, including provisions for protecting income for a
18 community spouse and permitting the transfer of resources to
19 a community spouse, required by enactment of the federal
20 Medicare Catastrophic Coverage Act of 1988 (Public Law
21 100-360). The notification shall be in language likely to be
22 easily understood by those persons. The Department of Human
23 Services also shall reassess the amount of medical assistance
24 for which each such recipient is eligible as a result of the
25 enactment of that federal Act, whether or not a recipient
26 requests such a reassessment.
27 (Source: P.A. 89-507, eff. 7-1-97; 90-655, eff. 7-30-98.)
28 (305 ILCS 5/6-1.2) (from Ch. 23, par. 6-1.2)
29 Sec. 6-1.2. Need. Income available to the person, when
30 added to contributions in money, substance, or services from
31 other sources, including contributions from legally
32 responsible relatives, must be insufficient to equal the
33 grant amount established by Department regulation (or by
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1 local governmental unit in units which do not receive State
2 funds) for such a person.
3 In determining income to be taken into account:
4 (1) The first $75 of earned income in income
5 assistance units comprised exclusively of one adult
6 person shall be disregarded, and for not more than 3
7 months in any 12 consecutive months that portion of
8 earned income beyond the first $75 that is the difference
9 between the standard of assistance and the grant amount,
10 shall be disregarded.
11 (2) For income assistance units not comprised
12 exclusively of one adult person, when authorized by rules
13 and regulations of the Illinois Department, a portion of
14 earned income, not to exceed the first $25 a month plus
15 50% of the next $75, may be disregarded for the purpose
16 of stimulating and aiding rehabilitative effort and
17 self-support activity.
18 "Earned income" means money earned in self-employment or
19 wages, salary, or commission for personal services performed
20 as an employee. The eligibility of any applicant for or
21 recipient of public aid under this Article is not affected by
22 the payment of any grant under the "Senior Citizens and
23 Disabled Persons Property Tax Relief and Pharmaceutical
24 Assistance Act", or any refund or payment of the federal
25 Earned Income Tax Credit, or any distributions or items of
26 income described under subparagraph (X) of paragraph (2) of
27 subsection (a) of Section 203 of the Illinois Income Tax Act.
28 If federal laws or regulations applicable to persons
29 receiving assistance under Articles III or IV of this Code
30 permit or require the exemption of earned income in excess of
31 the foregoing limitation on earned income exemptions or
32 permit or require the exemption of certain other income and
33 resources, the Illinois Department, may, by rule, authorize
34 comparable exemptions in determining need under this Section.
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1 (Source: P.A. 90-457, eff. 1-1-98.)
2 (305 ILCS 5/6-2) (from Ch. 23, par. 6-2)
3 Sec. 6-2. Amount of aid. The amount and nature of
4 General Assistance for basic maintenance requirements shall
5 be determined in accordance with local budget standards for
6 local governmental units which do not receive State funds.
7 For local governmental units which do receive State funds,
8 the amount and nature of General Assistance for basic
9 maintenance requirements shall be determined in accordance
10 with the standards, rules and regulations of the Illinois
11 Department. Beginning July 1, 1992, the supplementary grants
12 previously paid under this Section shall no longer be paid.
13 However, the amount and nature of any financial aid is not
14 affected by the payment of any grant under the Senior
15 Citizens and Disabled Persons Property Tax Relief and
16 Pharmaceutical Assistance Act or any distributions or items
17 of income described under subparagraph (X) of paragraph (2)
18 of subsection (a) of Section 203 of the Illinois Income Tax
19 Act. Due regard shall be given to the requirements and the
20 conditions existing in each case, and to the income, money
21 contributions and other support and resources available, from
22 whatever source. In local governmental units which do not
23 receive State funds, the grant shall be sufficient when added
24 to all other income, money contributions and support in
25 excess of any excluded income or resources, to provide the
26 person with a grant in the amount established for such a
27 person by the local governmental unit based upon standards
28 meeting basic maintenance requirements. In local
29 governmental units which do receive State funds, the grant
30 shall be sufficient when added to all other income, money
31 contributions and support in excess of any excluded income or
32 resources, to provide the person with a grant in the amount
33 established for such a person by Department regulation based
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1 upon standards providing a livelihood compatible with health
2 and well-being, as directed by Section 12-4.11 of this Code.
3 The Illinois Department may conduct special projects,
4 which may be known as Grant Diversion Projects, under which
5 recipients of financial aid under this Article are placed in
6 jobs and their grants are diverted to the employer who in
7 turn makes payments to the recipients in the form of salary
8 or other employment benefits. The Illinois Department shall
9 by rule specify the terms and conditions of such Grant
10 Diversion Projects. Such projects shall take into
11 consideration and be coordinated with the programs
12 administered under the Illinois Emergency Employment
13 Development Act.
14 The allowances provided under Article IX for recipients
15 participating in the training and rehabilitation programs
16 shall be in addition to such maximum payment.
17 Payments may also be made to provide persons receiving
18 basic maintenance support with necessary treatment, care and
19 supplies required because of illness or disability or with
20 acute medical treatment, care, and supplies. Payments for
21 necessary or acute medical care under this paragraph may be
22 made to or in behalf of the person. Obligations incurred for
23 such services but not paid for at the time of a recipient's
24 death may be paid, subject to the rules and regulations of
25 the Illinois Department, after the death of the recipient.
26 (Source: P.A. 89-646, eff. 1-1-97; 90-372, eff. 7-1-98.)
27 Section 15. The Senior Citizens and Disabled Persons
28 Property Tax Relief and Pharmaceutical Assistance Act is
29 amended by changing Section 3.07 as follows:
30 (320 ILCS 25/3.07) (from Ch. 67 1/2, par. 403.07)
31 Sec. 3.07. "Income" means adjusted gross income,
32 properly reportable for federal income tax purposes under the
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1 provisions of the Internal Revenue Code, modified by adding
2 thereto the sum of the following amounts to the extent
3 deducted or excluded from gross income in the computation of
4 adjusted gross income:
5 (A) An amount equal to all amounts paid or accrued
6 as interest or dividends during the taxable year;
7 (B) An amount equal to the amount of tax imposed by
8 the Illinois Income Tax Act paid for the taxable year;
9 (C) An amount equal to all amounts received during
10 the taxable year as an annuity under an annuity,
11 endowment or life insurance contract or under any other
12 contract or agreement;
13 (D) An amount equal to the amount of benefits paid
14 under the Federal Social Security Act during the taxable
15 year;
16 (E) An amount equal to the amount of benefits paid
17 under the Railroad Retirement Act during the taxable
18 year;
19 (F) An amount equal to the total amount of cash
20 public assistance payments received from any governmental
21 agency during the taxable year other than benefits
22 received pursuant to this Act;
23 (G) An amount equal to any net operating loss
24 carryover deduction or capital loss carryover deduction
25 during the taxable year.
26 "Income" does not include any grant assistance received
27 under the Nursing Home Grant Assistance Act or any
28 distributions or items of income described under subparagraph
29 (X) of paragraph (2) of subsection (a) of Section 203 of the
30 Illinois Income Tax Act.
31 This amendatory Act of 1987 shall be effective for
32 purposes of this Section for tax years ending on or after
33 December 31, 1987.
34 (Source: P.A. 90-491, eff. 1-1-98.)
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.
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