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| Public Act 101-0545 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Income Tax Act is amended by | ||||
changing Section 205 as follows:
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(35 ILCS 5/205) (from Ch. 120, par. 2-205)
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Sec. 205. Exempt organizations.
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(a) Charitable, etc. organizations. For tax years | ||||
beginning before January 1, 2019, the The base income of an
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organization which is exempt from the federal income tax by | ||||
reason of the Internal Revenue Code shall not be determined
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under section 203 of this Act, but shall be its unrelated | ||||
business
taxable income as determined under section 512 of the | ||||
Internal Revenue
Code, without any deduction for the tax | ||||
imposed by this Act. The
standard exemption provided by section | ||||
204 of this Act shall not be
allowed in determining the net | ||||
income of an organization to which this
subsection applies.
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For tax years beginning on or after January 1, 2019, the | ||||
base income of an organization which is exempt from the federal | ||||
income tax by reason of the Internal Revenue Code shall not be | ||||
determined under Section 203 of this Act, but shall be its | ||||
unrelated business taxable income as determined under Section | ||||
512 of the Internal Revenue Code, without regard to Section | ||||
512(a)(7) of the Internal Revenue Code and without any | ||
deduction for the tax imposed by this Act. The standard | ||
exemption provided by Section 204 of this Act shall not be | ||
allowed in determining the net income of an organization to | ||
which this subsection applies. This exclusion is exempt from | ||
the provisions of Section 250. | ||
(b) Partnerships. A partnership as such shall not be | ||
subject to
the tax imposed by subsection 201 (a) and (b) of | ||
this Act, but shall be
subject to the replacement tax imposed | ||
by subsection 201 (c) and (d) of
this Act and shall compute its | ||
base income as described in subsection (d)
of Section 203 of | ||
this Act. For taxable years ending on or after December 31, | ||
2004, an investment partnership, as defined in Section | ||
1501(a)(11.5) of this Act, shall not be subject to the tax | ||
imposed by subsections (c) and (d) of Section 201 of this Act.
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A partnership shall file such returns and other
information at | ||
such
time and in such manner as may be required under Article 5 | ||
of this Act.
The partners in a partnership shall be liable for | ||
the replacement tax imposed
by subsection 201 (c) and (d) of | ||
this Act on such partnership, to the extent
such tax is not | ||
paid by the partnership, as provided under the laws of Illinois
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governing the liability of partners for the obligations of a | ||
partnership.
Persons carrying on business as partners shall be | ||
liable for the tax
imposed by subsection 201 (a) and (b) of | ||
this Act only in their separate
or individual capacities.
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(c) Subchapter S corporations. A Subchapter S corporation | ||
shall not
be subject to the tax imposed by subsection 201 (a) | ||
and
(b) of this Act but shall be subject to the replacement tax | ||
imposed by subsection
201 (c) and (d) of this Act and shall | ||
file such returns
and other information
at such time and in | ||
such manner as may be required under Article 5 of this Act.
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(d) Combat zone, terrorist attack, and certain other | ||
deaths. An individual relieved from the federal
income tax for | ||
any taxable year by reason of section 692 of the Internal
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Revenue Code shall not be subject to the tax imposed by this | ||
Act for
such taxable year.
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(e) Certain trusts. A common trust fund described in | ||
Section 584
of the Internal Revenue Code, and any other trust | ||
to the extent that the
grantor is treated as the owner thereof | ||
under sections 671 through 678
of the Internal Revenue Code | ||
shall not be subject to the tax imposed by
this Act.
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(f) Certain business activities. A person not otherwise | ||
subject to the tax
imposed by this Act shall not become subject | ||
to the tax imposed by this Act by
reason of:
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(1) that person's ownership of tangible personal | ||
property located at the
premises of
a printer in this State | ||
with which the person has contracted for printing, or
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(2) activities of the person's employees or agents | ||
located solely at the
premises of a printer and related to | ||
quality control, distribution, or printing
services | ||
performed by a printer in the State with which the person | ||
has
contracted for printing.
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(g) A nonprofit risk organization that holds a certificate | ||
of authority under Article VIID of the Illinois Insurance Code | ||
is exempt from the tax imposed under this Act with respect to | ||
its activities or operations in furtherance of the powers | ||
conferred upon it under that Article VIID of the Illinois | ||
Insurance Code.
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(Source: P.A. 97-507, eff. 8-23-11.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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