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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||||
5 | changing Sections 201 and 208 as follows:
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6 | (35 ILCS 5/201)
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7 | (Text of Section before amendment by P.A. 101-8 ) | ||||||||||||||||||||||||||
8 | Sec. 201. Tax imposed. | ||||||||||||||||||||||||||
9 | (a) In general. A tax measured by net income is hereby | ||||||||||||||||||||||||||
10 | imposed on every
individual, corporation, trust and estate for | ||||||||||||||||||||||||||
11 | each taxable year ending
after July 31, 1969 on the privilege | ||||||||||||||||||||||||||
12 | of earning or receiving income in or
as a resident of this | ||||||||||||||||||||||||||
13 | State. Such tax shall be in addition to all other
occupation or | ||||||||||||||||||||||||||
14 | privilege taxes imposed by this State or by any municipal
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15 | corporation or political subdivision thereof. | ||||||||||||||||||||||||||
16 | (b) Rates. The tax imposed by subsection (a) of this | ||||||||||||||||||||||||||
17 | Section shall be
determined as follows, except as adjusted by | ||||||||||||||||||||||||||
18 | subsection (d-1): | ||||||||||||||||||||||||||
19 | (1) In the case of an individual, trust or estate, for | ||||||||||||||||||||||||||
20 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||||||||||||||||||||||
21 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||||||||||||||||||||||
22 | year. | ||||||||||||||||||||||||||
23 | (2) In the case of an individual, trust or estate, for |
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1 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
2 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
3 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
4 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
5 | 3% of the
taxpayer's net income for the period after June | ||||||
6 | 30, 1989, as calculated
under Section 202.3. | ||||||
7 | (3) In the case of an individual, trust or estate, for | ||||||
8 | taxable years
beginning after June 30, 1989, and ending | ||||||
9 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
10 | taxpayer's net
income for the taxable year. | ||||||
11 | (4) In the case of an individual, trust, or estate, for | ||||||
12 | taxable years beginning prior to January 1, 2011, and | ||||||
13 | ending after December 31, 2010, an amount equal to the sum | ||||||
14 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
15 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
16 | (ii) 5% of the taxpayer's net income for the period after | ||||||
17 | December 31, 2010, as calculated under Section 202.5. | ||||||
18 | (5) In the case of an individual, trust, or estate, for | ||||||
19 | taxable years beginning on or after January 1, 2011, and | ||||||
20 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
21 | the taxpayer's net income for the taxable year. | ||||||
22 | (5.1) In the case of an individual, trust, or estate, | ||||||
23 | for taxable years beginning prior to January 1, 2015, and | ||||||
24 | ending after December 31, 2014, an amount equal to the sum | ||||||
25 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
26 | to January 1, 2015, as calculated under Section 202.5, and |
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| |||||||
1 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
2 | after December 31, 2014, as calculated under Section 202.5. | ||||||
3 | (5.2) In the case of an individual, trust, or estate, | ||||||
4 | for taxable years beginning on or after January 1, 2015, | ||||||
5 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
6 | of the taxpayer's net income for the taxable year. | ||||||
7 | (5.3) In the case of an individual, trust, or estate, | ||||||
8 | for taxable years beginning prior to July 1, 2017, and | ||||||
9 | ending after June 30, 2017, an amount equal to the sum of | ||||||
10 | (i) 3.75% of the taxpayer's net income for the period prior | ||||||
11 | to July 1, 2017, as calculated under Section 202.5, and | ||||||
12 | (ii) 4.95% of the taxpayer's net income for the period | ||||||
13 | after June 30, 2017, as calculated under Section 202.5. | ||||||
14 | (5.4) In the case of an individual, trust, or estate, | ||||||
15 | for taxable years beginning on or after July 1, 2017, an | ||||||
16 | amount equal to 4.95% of the taxpayer's net income for the | ||||||
17 | taxable year. | ||||||
18 | (6) In the case of a corporation, for taxable years
| ||||||
19 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
20 | taxpayer's net income for the taxable year. | ||||||
21 | (7) In the case of a corporation, for taxable years | ||||||
22 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
23 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
24 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
25 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
26 | taxpayer's net
income for the period after June 30, 1989, |
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| |||||||
1 | as calculated under Section
202.3. | ||||||
2 | (8) In the case of a corporation, for taxable years | ||||||
3 | beginning after
June 30, 1989, and ending prior to January | ||||||
4 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
5 | income for the
taxable year. | ||||||
6 | (9) In the case of a corporation, for taxable years | ||||||
7 | beginning prior to January 1, 2011, and ending after | ||||||
8 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
9 | of the taxpayer's net income for the period prior to | ||||||
10 | January 1, 2011, as calculated under Section 202.5, and | ||||||
11 | (ii) 7% of the taxpayer's net income for the period after | ||||||
12 | December 31, 2010, as calculated under Section 202.5. | ||||||
13 | (10) In the case of a corporation, for taxable years | ||||||
14 | beginning on or after January 1, 2011, and ending prior to | ||||||
15 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
16 | net income for the taxable year. | ||||||
17 | (11) In the case of a corporation, for taxable years | ||||||
18 | beginning prior to January 1, 2015, and ending after | ||||||
19 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
20 | the taxpayer's net income for the period prior to January | ||||||
21 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
22 | of the taxpayer's net income for the period after December | ||||||
23 | 31, 2014, as calculated under Section 202.5. | ||||||
24 | (12) In the case of a corporation, for taxable years | ||||||
25 | beginning on or after January 1, 2015, and ending prior to | ||||||
26 | July 1, 2017, an amount equal to 5.25% of the taxpayer's |
| |||||||
| |||||||
1 | net income for the taxable year. | ||||||
2 | (13) In the case of a corporation, for taxable years | ||||||
3 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
4 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
5 | taxpayer's net income for the period prior to July 1, 2017, | ||||||
6 | as calculated under Section 202.5, and (ii) 7% of the | ||||||
7 | taxpayer's net income for the period after June 30, 2017, | ||||||
8 | as calculated under Section 202.5. | ||||||
9 | (14) In the case of a corporation, for taxable years | ||||||
10 | beginning on or after July 1, 2017, an amount equal to 7% | ||||||
11 | of the taxpayer's net income for the taxable year. | ||||||
12 | The rates under this subsection (b) are subject to the | ||||||
13 | provisions of Section 201.5. | ||||||
14 | (b-5) Surcharge; sale or exchange of assets, properties, | ||||||
15 | and intangibles of organization gaming licensees. For each of | ||||||
16 | taxable years 2019 through 2027, a surcharge is imposed on all | ||||||
17 | taxpayers on income arising from the sale or exchange of | ||||||
18 | capital assets, depreciable business property, real property | ||||||
19 | used in the trade or business, and Section 197 intangibles (i) | ||||||
20 | of an organization licensee under the Illinois Horse Racing Act | ||||||
21 | of 1975 and (ii) of an organization gaming licensee under the | ||||||
22 | Illinois Gambling Act. The amount of the surcharge is equal to | ||||||
23 | the amount of federal income tax liability for the taxable year | ||||||
24 | attributable to those sales and exchanges. The surcharge | ||||||
25 | imposed shall not apply if: | ||||||
26 | (1) the organization gaming license, organization |
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| |||||||
1 | license, or racetrack property is transferred as a result | ||||||
2 | of any of the following: | ||||||
3 | (A) bankruptcy, a receivership, or a debt | ||||||
4 | adjustment initiated by or against the initial | ||||||
5 | licensee or the substantial owners of the initial | ||||||
6 | licensee; | ||||||
7 | (B) cancellation, revocation, or termination of | ||||||
8 | any such license by the Illinois Gaming Board or the | ||||||
9 | Illinois Racing Board; | ||||||
10 | (C) a determination by the Illinois Gaming Board | ||||||
11 | that transfer of the license is in the best interests | ||||||
12 | of Illinois gaming; | ||||||
13 | (D) the death of an owner of the equity interest in | ||||||
14 | a licensee; | ||||||
15 | (E) the acquisition of a controlling interest in | ||||||
16 | the stock or substantially all of the assets of a | ||||||
17 | publicly traded company; | ||||||
18 | (F) a transfer by a parent company to a wholly | ||||||
19 | owned subsidiary; or | ||||||
20 | (G) the transfer or sale to or by one person to | ||||||
21 | another person where both persons were initial owners | ||||||
22 | of the license when the license was issued; or | ||||||
23 | (2) the controlling interest in the organization | ||||||
24 | gaming license, organization license, or racetrack | ||||||
25 | property is transferred in a transaction to lineal | ||||||
26 | descendants in which no gain or loss is recognized or as a |
| |||||||
| |||||||
1 | result of a transaction in accordance with Section 351 of | ||||||
2 | the Internal Revenue Code in which no gain or loss is | ||||||
3 | recognized; or | ||||||
4 | (3) live horse racing was not conducted in 2010 at a | ||||||
5 | racetrack located within 3 miles of the Mississippi River | ||||||
6 | under a license issued pursuant to the Illinois Horse | ||||||
7 | Racing Act of 1975. | ||||||
8 | The transfer of an organization gaming license, | ||||||
9 | organization license, or racetrack property by a person other | ||||||
10 | than the initial licensee to receive the organization gaming | ||||||
11 | license is not subject to a surcharge. The Department shall | ||||||
12 | adopt rules necessary to implement and administer this | ||||||
13 | subsection. | ||||||
14 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
15 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
16 | income
tax, there is also hereby imposed the Personal Property | ||||||
17 | Tax Replacement
Income Tax measured by net income on every | ||||||
18 | corporation (including Subchapter
S corporations), partnership | ||||||
19 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
20 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
21 | income in or as a resident of this State. The Personal Property
| ||||||
22 | Tax Replacement Income Tax shall be in addition to the income | ||||||
23 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
24 | addition to all other
occupation or privilege taxes imposed by | ||||||
25 | this State or by any municipal
corporation or political | ||||||
26 | subdivision thereof. |
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1 | (d) Additional Personal Property Tax Replacement Income | ||||||
2 | Tax Rates.
The personal property tax replacement income tax | ||||||
3 | imposed by this subsection
and subsection (c) of this Section | ||||||
4 | in the case of a corporation, other
than a Subchapter S | ||||||
5 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
6 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
7 | income for the taxable year, except that
beginning on January | ||||||
8 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
9 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
10 | partnership, trust or a Subchapter S corporation shall be an | ||||||
11 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
12 | for the taxable year. | ||||||
13 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
14 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
15 | Illinois Insurance Code,
whose state or country of domicile | ||||||
16 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
17 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
18 | are 50% or more of its total insurance
premiums as determined | ||||||
19 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
20 | that for purposes of this determination premiums from | ||||||
21 | reinsurance do
not include premiums from inter-affiliate | ||||||
22 | reinsurance arrangements),
beginning with taxable years ending | ||||||
23 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
24 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
25 | increased) to the rate at which the total amount of tax imposed | ||||||
26 | under this Act,
net of all credits allowed under this Act, |
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| |||||||
1 | shall equal (i) the total amount of
tax that would be imposed | ||||||
2 | on the foreign insurer's net income allocable to
Illinois for | ||||||
3 | the taxable year by such foreign insurer's state or country of
| ||||||
4 | domicile if that net income were subject to all income taxes | ||||||
5 | and taxes
measured by net income imposed by such foreign | ||||||
6 | insurer's state or country of
domicile, net of all credits | ||||||
7 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
8 | income by the foreign insurer's state of domicile.
For the | ||||||
9 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
10 | a
mutual insurer under common management. | ||||||
11 | (1) For the purposes of subsection (d-1), in no event | ||||||
12 | shall the sum of the
rates of tax imposed by subsections | ||||||
13 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
14 | (A) the total amount of tax imposed on such foreign | ||||||
15 | insurer under
this Act for a taxable year, net of all | ||||||
16 | credits allowed under this Act, plus | ||||||
17 | (B) the privilege tax imposed by Section 409 of the | ||||||
18 | Illinois Insurance
Code, the fire insurance company | ||||||
19 | tax imposed by Section 12 of the Fire
Investigation | ||||||
20 | Act, and the fire department taxes imposed under | ||||||
21 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
22 | equals 1.25% for taxable years ending prior to December 31, | ||||||
23 | 2003, or
1.75% for taxable years ending on or after | ||||||
24 | December 31, 2003, of the net
taxable premiums written for | ||||||
25 | the taxable year,
as described by subsection (1) of Section | ||||||
26 | 409 of the Illinois Insurance Code.
This paragraph will in |
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| |||||||
1 | no event increase the rates imposed under subsections
(b) | ||||||
2 | and (d). | ||||||
3 | (2) Any reduction in the rates of tax imposed by this | ||||||
4 | subsection shall be
applied first against the rates imposed | ||||||
5 | by subsection (b) and only after the
tax imposed by | ||||||
6 | subsection (a) net of all credits allowed under this | ||||||
7 | Section
other than the credit allowed under subsection (i) | ||||||
8 | has been reduced to zero,
against the rates imposed by | ||||||
9 | subsection (d). | ||||||
10 | This subsection (d-1) is exempt from the provisions of | ||||||
11 | Section 250. | ||||||
12 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
13 | against the Personal Property Tax Replacement Income Tax for
| ||||||
14 | investment in qualified property. | ||||||
15 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
16 | of
the basis of qualified property placed in service during | ||||||
17 | the taxable year,
provided such property is placed in | ||||||
18 | service on or after
July 1, 1984. There shall be allowed an | ||||||
19 | additional credit equal
to .5% of the basis of qualified | ||||||
20 | property placed in service during the
taxable year, | ||||||
21 | provided such property is placed in service on or
after | ||||||
22 | July 1, 1986, and the taxpayer's base employment
within | ||||||
23 | Illinois has increased by 1% or more over the preceding | ||||||
24 | year as
determined by the taxpayer's employment records | ||||||
25 | filed with the
Illinois Department of Employment Security. | ||||||
26 | Taxpayers who are new to
Illinois shall be deemed to have |
| |||||||
| |||||||
1 | met the 1% growth in base employment for
the first year in | ||||||
2 | which they file employment records with the Illinois
| ||||||
3 | Department of Employment Security. The provisions added to | ||||||
4 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
5 | Act 87-895) shall be
construed as declaratory of existing | ||||||
6 | law and not as a new enactment. If,
in any year, the | ||||||
7 | increase in base employment within Illinois over the
| ||||||
8 | preceding year is less than 1%, the additional credit shall | ||||||
9 | be limited to that
percentage times a fraction, the | ||||||
10 | numerator of which is .5% and the denominator
of which is | ||||||
11 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
12 | not be
allowed to the extent that it would reduce a | ||||||
13 | taxpayer's liability in any tax
year below zero, nor may | ||||||
14 | any credit for qualified property be allowed for any
year | ||||||
15 | other than the year in which the property was placed in | ||||||
16 | service in
Illinois. For tax years ending on or after | ||||||
17 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
18 | credit shall be allowed for the tax year in
which the | ||||||
19 | property is placed in service, or, if the amount of the | ||||||
20 | credit
exceeds the tax liability for that year, whether it | ||||||
21 | exceeds the original
liability or the liability as later | ||||||
22 | amended, such excess may be carried
forward and applied to | ||||||
23 | the tax liability of the 5 taxable years following
the | ||||||
24 | excess credit years if the taxpayer (i) makes investments | ||||||
25 | which cause
the creation of a minimum of 2,000 full-time | ||||||
26 | equivalent jobs in Illinois,
(ii) is located in an |
| |||||||
| |||||||
1 | enterprise zone established pursuant to the Illinois
| ||||||
2 | Enterprise Zone Act and (iii) is certified by the | ||||||
3 | Department of Commerce
and Community Affairs (now | ||||||
4 | Department of Commerce and Economic Opportunity) as | ||||||
5 | complying with the requirements specified in
clause (i) and | ||||||
6 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
7 | Community Affairs (now Department of Commerce and Economic | ||||||
8 | Opportunity) shall notify the Department of Revenue of all | ||||||
9 | such
certifications immediately. For tax years ending | ||||||
10 | after December 31, 1988,
the credit shall be allowed for | ||||||
11 | the tax year in which the property is
placed in service, | ||||||
12 | or, if the amount of the credit exceeds the tax
liability | ||||||
13 | for that year, whether it exceeds the original liability or | ||||||
14 | the
liability as later amended, such excess may be carried | ||||||
15 | forward and applied
to the tax liability of the 5 taxable | ||||||
16 | years following the excess credit
years. The credit shall | ||||||
17 | be applied to the earliest year for which there is
a | ||||||
18 | liability. If there is credit from more than one tax year | ||||||
19 | that is
available to offset a liability, earlier credit | ||||||
20 | shall be applied first. | ||||||
21 | (2) The term "qualified property" means property | ||||||
22 | which: | ||||||
23 | (A) is tangible, whether new or used, including | ||||||
24 | buildings and structural
components of buildings and | ||||||
25 | signs that are real property, but not including
land or | ||||||
26 | improvements to real property that are not a structural |
| |||||||
| |||||||
1 | component of a
building such as landscaping, sewer | ||||||
2 | lines, local access roads, fencing, parking
lots, and | ||||||
3 | other appurtenances; | ||||||
4 | (B) is depreciable pursuant to Section 167 of the | ||||||
5 | Internal Revenue Code,
except that "3-year property" | ||||||
6 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
7 | eligible for the credit provided by this subsection | ||||||
8 | (e); | ||||||
9 | (C) is acquired by purchase as defined in Section | ||||||
10 | 179(d) of
the Internal Revenue Code; | ||||||
11 | (D) is used in Illinois by a taxpayer who is | ||||||
12 | primarily engaged in
manufacturing, or in mining coal | ||||||
13 | or fluorite, or in retailing, or was placed in service | ||||||
14 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
15 | Zone established pursuant to the River Edge | ||||||
16 | Redevelopment Zone Act; and | ||||||
17 | (E) has not previously been used in Illinois in | ||||||
18 | such a manner and by
such a person as would qualify for | ||||||
19 | the credit provided by this subsection
(e) or | ||||||
20 | subsection (f). | ||||||
21 | (3) For purposes of this subsection (e), | ||||||
22 | "manufacturing" means
the material staging and production | ||||||
23 | of tangible personal property by
procedures commonly | ||||||
24 | regarded as manufacturing, processing, fabrication, or
| ||||||
25 | assembling which changes some existing material into new | ||||||
26 | shapes, new
qualities, or new combinations. For purposes of |
| |||||||
| |||||||
1 | this subsection
(e) the term "mining" shall have the same | ||||||
2 | meaning as the term "mining" in
Section 613(c) of the | ||||||
3 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
4 | the term "retailing" means the sale of tangible personal | ||||||
5 | property for use or consumption and not for resale, or
| ||||||
6 | services rendered in conjunction with the sale of tangible | ||||||
7 | personal property for use or consumption and not for | ||||||
8 | resale. For purposes of this subsection (e), "tangible | ||||||
9 | personal property" has the same meaning as when that term | ||||||
10 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
11 | taxable years ending after December 31, 2008, does not | ||||||
12 | include the generation, transmission, or distribution of | ||||||
13 | electricity. | ||||||
14 | (4) The basis of qualified property shall be the basis
| ||||||
15 | used to compute the depreciation deduction for federal | ||||||
16 | income tax purposes. | ||||||
17 | (5) If the basis of the property for federal income tax | ||||||
18 | depreciation
purposes is increased after it has been placed | ||||||
19 | in service in Illinois by
the taxpayer, the amount of such | ||||||
20 | increase shall be deemed property placed
in service on the | ||||||
21 | date of such increase in basis. | ||||||
22 | (6) The term "placed in service" shall have the same
| ||||||
23 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
24 | (7) If during any taxable year, any property ceases to
| ||||||
25 | be qualified property in the hands of the taxpayer within | ||||||
26 | 48 months after
being placed in service, or the situs of |
| |||||||
| |||||||
1 | any qualified property is
moved outside Illinois within 48 | ||||||
2 | months after being placed in service, the
Personal Property | ||||||
3 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
4 | increased. Such increase shall be determined by (i) | ||||||
5 | recomputing the
investment credit which would have been | ||||||
6 | allowed for the year in which
credit for such property was | ||||||
7 | originally allowed by eliminating such
property from such | ||||||
8 | computation and, (ii) subtracting such recomputed credit
| ||||||
9 | from the amount of credit previously allowed. For the | ||||||
10 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
11 | qualified property resulting
from a redetermination of the | ||||||
12 | purchase price shall be deemed a disposition
of qualified | ||||||
13 | property to the extent of such reduction. | ||||||
14 | (8) Unless the investment credit is extended by law, | ||||||
15 | the
basis of qualified property shall not include costs | ||||||
16 | incurred after
December 31, 2018, except for costs incurred | ||||||
17 | pursuant to a binding
contract entered into on or before | ||||||
18 | December 31, 2018. | ||||||
19 | (9) Each taxable year ending before December 31, 2000, | ||||||
20 | a partnership may
elect to pass through to its
partners the | ||||||
21 | credits to which the partnership is entitled under this | ||||||
22 | subsection
(e) for the taxable year. A partner may use the | ||||||
23 | credit allocated to him or her
under this paragraph only | ||||||
24 | against the tax imposed in subsections (c) and (d) of
this | ||||||
25 | Section. If the partnership makes that election, those | ||||||
26 | credits shall be
allocated among the partners in the |
| |||||||
| |||||||
1 | partnership in accordance with the rules
set forth in | ||||||
2 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
3 | promulgated under that Section, and the allocated amount of | ||||||
4 | the credits shall
be allowed to the partners for that | ||||||
5 | taxable year. The partnership shall make
this election on | ||||||
6 | its Personal Property Tax Replacement Income Tax return for
| ||||||
7 | that taxable year. The election to pass through the credits | ||||||
8 | shall be
irrevocable. | ||||||
9 | For taxable years ending on or after December 31, 2000, | ||||||
10 | a
partner that qualifies its
partnership for a subtraction | ||||||
11 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
12 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
13 | S
corporation for a subtraction under subparagraph (S) of | ||||||
14 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
15 | allowed a credit under this subsection
(e) equal to its | ||||||
16 | share of the credit earned under this subsection (e) during
| ||||||
17 | the taxable year by the partnership or Subchapter S | ||||||
18 | corporation, determined in
accordance with the | ||||||
19 | determination of income and distributive share of
income | ||||||
20 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
21 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
22 | of Section 250. | ||||||
23 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
24 | Redevelopment Zone. | ||||||
25 | (1) A taxpayer shall be allowed a credit against the | ||||||
26 | tax imposed
by subsections (a) and (b) of this Section for |
| |||||||
| |||||||
1 | investment in qualified
property which is placed in service | ||||||
2 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
3 | Enterprise Zone Act or, for property placed in service on | ||||||
4 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
5 | established pursuant to the River Edge Redevelopment Zone | ||||||
6 | Act. For partners, shareholders
of Subchapter S | ||||||
7 | corporations, and owners of limited liability companies,
| ||||||
8 | if the liability company is treated as a partnership for | ||||||
9 | purposes of
federal and State income taxation, there shall | ||||||
10 | be allowed a credit under
this subsection (f) to be | ||||||
11 | determined in accordance with the determination
of income | ||||||
12 | and distributive share of income under Sections 702 and 704 | ||||||
13 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
14 | shall be .5% of the
basis for such property. The credit | ||||||
15 | shall be available only in the taxable
year in which the | ||||||
16 | property is placed in service in the Enterprise Zone or | ||||||
17 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
18 | the extent that it would reduce a taxpayer's
liability for | ||||||
19 | the tax imposed by subsections (a) and (b) of this Section | ||||||
20 | to
below zero. For tax years ending on or after December | ||||||
21 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
22 | which the property is placed in
service, or, if the amount | ||||||
23 | of the credit exceeds the tax liability for that
year, | ||||||
24 | whether it exceeds the original liability or the liability | ||||||
25 | as later
amended, such excess may be carried forward and | ||||||
26 | applied to the tax
liability of the 5 taxable years |
| |||||||
| |||||||
1 | following the excess credit year.
The credit shall be | ||||||
2 | applied to the earliest year for which there is a
| ||||||
3 | liability. If there is credit from more than one tax year | ||||||
4 | that is available
to offset a liability, the credit | ||||||
5 | accruing first in time shall be applied
first. | ||||||
6 | (2) The term qualified property means property which: | ||||||
7 | (A) is tangible, whether new or used, including | ||||||
8 | buildings and
structural components of buildings; | ||||||
9 | (B) is depreciable pursuant to Section 167 of the | ||||||
10 | Internal Revenue
Code, except that "3-year property" | ||||||
11 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
12 | eligible for the credit provided by this subsection | ||||||
13 | (f); | ||||||
14 | (C) is acquired by purchase as defined in Section | ||||||
15 | 179(d) of
the Internal Revenue Code; | ||||||
16 | (D) is used in the Enterprise Zone or River Edge | ||||||
17 | Redevelopment Zone by the taxpayer; and | ||||||
18 | (E) has not been previously used in Illinois in | ||||||
19 | such a manner and by
such a person as would qualify for | ||||||
20 | the credit provided by this subsection
(f) or | ||||||
21 | subsection (e). | ||||||
22 | (3) The basis of qualified property shall be the basis | ||||||
23 | used to compute
the depreciation deduction for federal | ||||||
24 | income tax purposes. | ||||||
25 | (4) If the basis of the property for federal income tax | ||||||
26 | depreciation
purposes is increased after it has been placed |
| |||||||
| |||||||
1 | in service in the Enterprise
Zone or River Edge | ||||||
2 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
3 | increase shall be deemed property
placed in service on the | ||||||
4 | date of such increase in basis. | ||||||
5 | (5) The term "placed in service" shall have the same | ||||||
6 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
7 | (6) If during any taxable year, any property ceases to | ||||||
8 | be qualified
property in the hands of the taxpayer within | ||||||
9 | 48 months after being placed
in service, or the situs of | ||||||
10 | any qualified property is moved outside the
Enterprise Zone | ||||||
11 | or River Edge Redevelopment Zone within 48 months after | ||||||
12 | being placed in service, the tax
imposed under subsections | ||||||
13 | (a) and (b) of this Section for such taxable year
shall be | ||||||
14 | increased. Such increase shall be determined by (i) | ||||||
15 | recomputing
the investment credit which would have been | ||||||
16 | allowed for the year in which
credit for such property was | ||||||
17 | originally allowed by eliminating such
property from such | ||||||
18 | computation, and (ii) subtracting such recomputed credit
| ||||||
19 | from the amount of credit previously allowed. For the | ||||||
20 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
21 | qualified property resulting
from a redetermination of the | ||||||
22 | purchase price shall be deemed a disposition
of qualified | ||||||
23 | property to the extent of such reduction. | ||||||
24 | (7) There shall be allowed an additional credit equal | ||||||
25 | to 0.5% of the basis of qualified property placed in | ||||||
26 | service during the taxable year in a River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone, provided such property is placed in | ||||||
2 | service on or after July 1, 2006, and the taxpayer's base | ||||||
3 | employment within Illinois has increased by 1% or more over | ||||||
4 | the preceding year as determined by the taxpayer's | ||||||
5 | employment records filed with the Illinois Department of | ||||||
6 | Employment Security. Taxpayers who are new to Illinois | ||||||
7 | shall be deemed to have met the 1% growth in base | ||||||
8 | employment for the first year in which they file employment | ||||||
9 | records with the Illinois Department of Employment | ||||||
10 | Security. If, in any year, the increase in base employment | ||||||
11 | within Illinois over the preceding year is less than 1%, | ||||||
12 | the additional credit shall be limited to that percentage | ||||||
13 | times a fraction, the numerator of which is 0.5% and the | ||||||
14 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
15 | (8) For taxable years beginning on or after January 1, | ||||||
16 | 2021, there shall be allowed an Enterprise Zone | ||||||
17 | construction jobs credit against the taxes imposed under | ||||||
18 | subsections (a) and (b) of this Section as provided in | ||||||
19 | Section 13 of the Illinois Enterprise Zone Act. | ||||||
20 | The credit or credits may not reduce the taxpayer's | ||||||
21 | liability to less than zero. If the amount of the credit or | ||||||
22 | credits exceeds the taxpayer's liability, the excess may be | ||||||
23 | carried forward and applied against the taxpayer's | ||||||
24 | liability in succeeding calendar years in the same manner | ||||||
25 | provided under paragraph (4) of Section 211 of this Act. | ||||||
26 | The credit or credits shall be applied to the earliest year |
| |||||||
| |||||||
1 | for which there is a tax liability. If there are credits | ||||||
2 | from more than one taxable year that are available to | ||||||
3 | offset a liability, the earlier credit shall be applied | ||||||
4 | first. | ||||||
5 | For partners, shareholders of Subchapter S | ||||||
6 | corporations, and owners of limited liability companies, | ||||||
7 | if the liability company is treated as a partnership for | ||||||
8 | the purposes of federal and State income taxation, there | ||||||
9 | shall be allowed a credit under this Section to be | ||||||
10 | determined in accordance with the determination of income | ||||||
11 | and distributive share of income under Sections 702 and 704 | ||||||
12 | and Subchapter S of the Internal Revenue Code. | ||||||
13 | The total aggregate amount of credits awarded under the | ||||||
14 | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this | ||||||
15 | amendatory Act of the 101st General Assembly ) shall not | ||||||
16 | exceed $20,000,000 in any State fiscal year . | ||||||
17 | This paragraph (8) is exempt from the provisions of | ||||||
18 | Section 250. | ||||||
19 | (g) (Blank). | ||||||
20 | (h) Investment credit; High Impact Business. | ||||||
21 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
22 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
23 | allowed a credit
against the tax imposed by subsections (a) | ||||||
24 | and (b) of this Section for
investment in qualified
| ||||||
25 | property which is placed in service by a Department of | ||||||
26 | Commerce and Economic Opportunity
designated High Impact |
| |||||||
| |||||||
1 | Business. The credit shall be .5% of the basis
for such | ||||||
2 | property. The credit shall not be available (i) until the | ||||||
3 | minimum
investments in qualified property set forth in | ||||||
4 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
5 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
6 | time authorized in subsection (b-5) of the Illinois
| ||||||
7 | Enterprise Zone Act for entities designated as High Impact | ||||||
8 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
9 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
10 | Act, and shall not be allowed to the extent that it would
| ||||||
11 | reduce a taxpayer's liability for the tax imposed by | ||||||
12 | subsections (a) and (b) of
this Section to below zero. The | ||||||
13 | credit applicable to such investments shall be
taken in the | ||||||
14 | taxable year in which such investments have been completed. | ||||||
15 | The
credit for additional investments beyond the minimum | ||||||
16 | investment by a designated
high impact business authorized | ||||||
17 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
18 | Enterprise Zone Act shall be available only in the taxable | ||||||
19 | year in
which the property is placed in service and shall | ||||||
20 | not be allowed to the extent
that it would reduce a | ||||||
21 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
22 | and (b) of this Section to below zero.
For tax years ending | ||||||
23 | on or after December 31, 1987, the credit shall be
allowed | ||||||
24 | for the tax year in which the property is placed in | ||||||
25 | service, or, if
the amount of the credit exceeds the tax | ||||||
26 | liability for that year, whether
it exceeds the original |
| |||||||
| |||||||
1 | liability or the liability as later amended, such
excess | ||||||
2 | may be carried forward and applied to the tax liability of | ||||||
3 | the 5
taxable years following the excess credit year. The | ||||||
4 | credit shall be
applied to the earliest year for which | ||||||
5 | there is a liability. If there is
credit from more than one | ||||||
6 | tax year that is available to offset a liability,
the | ||||||
7 | credit accruing first in time shall be applied first. | ||||||
8 | Changes made in this subdivision (h)(1) by Public Act | ||||||
9 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
10 | reflect existing law. | ||||||
11 | (2) The term qualified property means property which: | ||||||
12 | (A) is tangible, whether new or used, including | ||||||
13 | buildings and
structural components of buildings; | ||||||
14 | (B) is depreciable pursuant to Section 167 of the | ||||||
15 | Internal Revenue
Code, except that "3-year property" | ||||||
16 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
17 | eligible for the credit provided by this subsection | ||||||
18 | (h); | ||||||
19 | (C) is acquired by purchase as defined in Section | ||||||
20 | 179(d) of the
Internal Revenue Code; and | ||||||
21 | (D) is not eligible for the Enterprise Zone | ||||||
22 | Investment Credit provided
by subsection (f) of this | ||||||
23 | Section. | ||||||
24 | (3) The basis of qualified property shall be the basis | ||||||
25 | used to compute
the depreciation deduction for federal | ||||||
26 | income tax purposes. |
| |||||||
| |||||||
1 | (4) If the basis of the property for federal income tax | ||||||
2 | depreciation
purposes is increased after it has been placed | ||||||
3 | in service in a federally
designated Foreign Trade Zone or | ||||||
4 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
5 | such increase shall be deemed property placed in service on
| ||||||
6 | the date of such increase in basis. | ||||||
7 | (5) The term "placed in service" shall have the same | ||||||
8 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
9 | (6) If during any taxable year ending on or before | ||||||
10 | December 31, 1996,
any property ceases to be qualified
| ||||||
11 | property in the hands of the taxpayer within 48 months | ||||||
12 | after being placed
in service, or the situs of any | ||||||
13 | qualified property is moved outside
Illinois within 48 | ||||||
14 | months after being placed in service, the tax imposed
under | ||||||
15 | subsections (a) and (b) of this Section for such taxable | ||||||
16 | year shall
be increased. Such increase shall be determined | ||||||
17 | by (i) recomputing the
investment credit which would have | ||||||
18 | been allowed for the year in which
credit for such property | ||||||
19 | was originally allowed by eliminating such
property from | ||||||
20 | such computation, and (ii) subtracting such recomputed | ||||||
21 | credit
from the amount of credit previously allowed. For | ||||||
22 | the purposes of this
paragraph (6), a reduction of the | ||||||
23 | basis of qualified property resulting
from a | ||||||
24 | redetermination of the purchase price shall be deemed a | ||||||
25 | disposition
of qualified property to the extent of such | ||||||
26 | reduction. |
| |||||||
| |||||||
1 | (7) Beginning with tax years ending after December 31, | ||||||
2 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
3 | subsection (h) and thereby is
granted a tax abatement and | ||||||
4 | the taxpayer relocates its entire facility in
violation of | ||||||
5 | the explicit terms and length of the contract under Section
| ||||||
6 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
7 | subsections
(a) and (b) of this Section shall be increased | ||||||
8 | for the taxable year
in which the taxpayer relocated its | ||||||
9 | facility by an amount equal to the
amount of credit | ||||||
10 | received by the taxpayer under this subsection (h). | ||||||
11 | (h-5) High Impact Business construction constructions jobs | ||||||
12 | credit. For taxable years beginning on or after January 1, | ||||||
13 | 2021, there shall also be allowed a High Impact Business | ||||||
14 | construction jobs credit against the tax imposed under | ||||||
15 | subsections (a) and (b) of this Section as provided in | ||||||
16 | subsections (i) and (j) of Section 5.5 of the Illinois | ||||||
17 | Enterprise Zone Act. | ||||||
18 | The credit or credits may not reduce the taxpayer's | ||||||
19 | liability to less than zero. If the amount of the credit or | ||||||
20 | credits exceeds the taxpayer's liability, the excess may be | ||||||
21 | carried forward and applied against the taxpayer's liability in | ||||||
22 | succeeding calendar years in the manner provided under | ||||||
23 | paragraph (4) of Section 211 of this Act. The credit or credits | ||||||
24 | shall be applied to the earliest year for which there is a tax | ||||||
25 | liability. If there are credits from more than one taxable year | ||||||
26 | that are available to offset a liability, the earlier credit |
| |||||||
| |||||||
1 | shall be applied first. | ||||||
2 | For partners, shareholders of Subchapter S corporations, | ||||||
3 | and owners of limited liability companies, if the liability | ||||||
4 | company is treated as a partnership for the purposes of federal | ||||||
5 | and State income taxation, there shall be allowed a credit | ||||||
6 | under this Section to be determined in accordance with the | ||||||
7 | determination of income and distributive share of income under | ||||||
8 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
9 | Code. | ||||||
10 | The total aggregate amount of credits awarded under the | ||||||
11 | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this | ||||||
12 | amendatory Act of the 101st General Assembly ) shall not exceed | ||||||
13 | $20,000,000 in any State fiscal year . | ||||||
14 | This subsection (h-5) is exempt from the provisions of | ||||||
15 | Section 250. | ||||||
16 | (i) Credit for Personal Property Tax Replacement Income | ||||||
17 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
18 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
19 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
20 | (d) of this Section. This credit shall be computed by | ||||||
21 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
22 | Section by a fraction, the numerator
of which is base income | ||||||
23 | allocable to Illinois and the denominator of which is
Illinois | ||||||
24 | base income, and further multiplying the product by the tax | ||||||
25 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
26 | Any credit earned on or after December 31, 1986 under
this |
| |||||||
| |||||||
1 | subsection which is unused in the year
the credit is computed | ||||||
2 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
3 | and (b) for that year (whether it exceeds the original
| ||||||
4 | liability or the liability as later amended) may be carried | ||||||
5 | forward and
applied to the tax liability imposed by subsections | ||||||
6 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
7 | year, provided that no credit may
be carried forward to any | ||||||
8 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
9 | applied first to the earliest year for which there is a | ||||||
10 | liability. If
there is a credit under this subsection from more | ||||||
11 | than one tax year that is
available to offset a liability the | ||||||
12 | earliest credit arising under this
subsection shall be applied | ||||||
13 | first. | ||||||
14 | If, during any taxable year ending on or after December 31, | ||||||
15 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
16 | Section for which a taxpayer
has claimed a credit under this | ||||||
17 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
18 | shall also be reduced. Such reduction shall be
determined by | ||||||
19 | recomputing the credit to take into account the reduced tax
| ||||||
20 | imposed by subsections (c) and (d). If any portion of the
| ||||||
21 | reduced amount of credit has been carried to a different | ||||||
22 | taxable year, an
amended return shall be filed for such taxable | ||||||
23 | year to reduce the amount of
credit claimed. | ||||||
24 | (j) Training expense credit. Beginning with tax years | ||||||
25 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
26 | 2003, a taxpayer shall be
allowed a credit against the
tax |
| |||||||
| |||||||
1 | imposed by subsections (a) and (b) under this Section
for all | ||||||
2 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
3 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
4 | of Illinois by a taxpayer, for educational or vocational | ||||||
5 | training in
semi-technical or technical fields or semi-skilled | ||||||
6 | or skilled fields, which
were deducted from gross income in the | ||||||
7 | computation of taxable income. The
credit against the tax | ||||||
8 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
9 | training expenses. For partners, shareholders of subchapter S
| ||||||
10 | corporations, and owners of limited liability companies, if the | ||||||
11 | liability
company is treated as a partnership for purposes of | ||||||
12 | federal and State income
taxation, there shall be allowed a | ||||||
13 | credit under this subsection (j) to be
determined in accordance | ||||||
14 | with the determination of income and distributive
share of | ||||||
15 | income under Sections 702 and 704 and subchapter S of the | ||||||
16 | Internal
Revenue Code. | ||||||
17 | Any credit allowed under this subsection which is unused in | ||||||
18 | the year
the credit is earned may be carried forward to each of | ||||||
19 | the 5 taxable
years following the year for which the credit is | ||||||
20 | first computed until it is
used. This credit shall be applied | ||||||
21 | first to the earliest year for which
there is a liability. If | ||||||
22 | there is a credit under this subsection from more
than one tax | ||||||
23 | year that is available to offset a liability , the earliest
| ||||||
24 | credit arising under this subsection shall be applied first. No | ||||||
25 | carryforward
credit may be claimed in any tax year ending on or | ||||||
26 | after
December 31, 2003. |
| |||||||
| |||||||
1 | (k) Research and development credit. For tax years ending | ||||||
2 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
3 | beginning again for tax years ending on or after December 31, | ||||||
4 | 2004, and ending prior to January 1, 2027, a taxpayer shall be
| ||||||
5 | allowed a credit against the tax imposed by subsections (a) and | ||||||
6 | (b) of this
Section for increasing research activities in this | ||||||
7 | State. The credit
allowed against the tax imposed by | ||||||
8 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
9 | qualifying expenditures for increasing research activities
in | ||||||
10 | this State. For partners, shareholders of subchapter S | ||||||
11 | corporations, and
owners of limited liability companies, if the | ||||||
12 | liability company is treated as a
partnership for purposes of | ||||||
13 | federal and State income taxation, there shall be
allowed a | ||||||
14 | credit under this subsection to be determined in accordance | ||||||
15 | with the
determination of income and distributive share of | ||||||
16 | income under Sections 702 and
704 and subchapter S of the | ||||||
17 | Internal Revenue Code. | ||||||
18 | For purposes of this subsection, "qualifying expenditures" | ||||||
19 | means the
qualifying expenditures as defined for the federal | ||||||
20 | credit for increasing
research activities which would be | ||||||
21 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
22 | which are conducted in this State, "qualifying
expenditures for | ||||||
23 | increasing research activities in this State" means the
excess | ||||||
24 | of qualifying expenditures for the taxable year in which | ||||||
25 | incurred
over qualifying expenditures for the base period, | ||||||
26 | "qualifying expenditures
for the base period" means the average |
| |||||||
| |||||||
1 | of the qualifying expenditures for
each year in the base | ||||||
2 | period, and "base period" means the 3 taxable years
immediately | ||||||
3 | preceding the taxable year for which the determination is
being | ||||||
4 | made. | ||||||
5 | Any credit in excess of the tax liability for the taxable | ||||||
6 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
7 | unused credit shown on its final completed return carried over | ||||||
8 | as a credit
against the tax liability for the following 5 | ||||||
9 | taxable years or until it has
been fully used, whichever occurs | ||||||
10 | first; provided that no credit earned in a tax year ending | ||||||
11 | prior to December 31, 2003 may be carried forward to any year | ||||||
12 | ending on or after December 31, 2003. | ||||||
13 | If an unused credit is carried forward to a given year from | ||||||
14 | 2 or more
earlier years, that credit arising in the earliest | ||||||
15 | year will be applied
first against the tax liability for the | ||||||
16 | given year. If a tax liability for
the given year still | ||||||
17 | remains, the credit from the next earliest year will
then be | ||||||
18 | applied, and so on, until all credits have been used or no tax
| ||||||
19 | liability for the given year remains. Any remaining unused | ||||||
20 | credit or
credits then will be carried forward to the next | ||||||
21 | following year in which a
tax liability is incurred, except | ||||||
22 | that no credit can be carried forward to
a year which is more | ||||||
23 | than 5 years after the year in which the expense for
which the | ||||||
24 | credit is given was incurred. | ||||||
25 | No inference shall be drawn from Public Act 91-644 this | ||||||
26 | amendatory Act of the 91st General
Assembly in construing this |
| |||||||
| |||||||
1 | Section for taxable years beginning before January
1, 1999. | ||||||
2 | It is the intent of the General Assembly that the research | ||||||
3 | and development credit under this subsection (k) shall apply | ||||||
4 | continuously for all tax years ending on or after December 31, | ||||||
5 | 2004 and ending prior to January 1, 2027, including, but not | ||||||
6 | limited to, the period beginning on January 1, 2016 and ending | ||||||
7 | on July 6, 2017 ( the effective date of Public Act 100-22) this | ||||||
8 | amendatory Act of the 100th General Assembly . All actions taken | ||||||
9 | in reliance on the continuation of the credit under this | ||||||
10 | subsection (k) by any taxpayer are hereby validated. | ||||||
11 | (l) Environmental Remediation Tax Credit. | ||||||
12 | (i) For tax years ending after December 31, 1997 and on | ||||||
13 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
14 | credit against the tax
imposed by subsections (a) and (b) | ||||||
15 | of this Section for certain amounts paid
for unreimbursed | ||||||
16 | eligible remediation costs, as specified in this | ||||||
17 | subsection.
For purposes of this Section, "unreimbursed | ||||||
18 | eligible remediation costs" means
costs approved by the | ||||||
19 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
20 | Section 58.14 of the Environmental Protection Act that were | ||||||
21 | paid in performing
environmental remediation at a site for | ||||||
22 | which a No Further Remediation Letter
was issued by the | ||||||
23 | Agency and recorded under Section 58.10 of the | ||||||
24 | Environmental
Protection Act. The credit must be claimed | ||||||
25 | for the taxable year in which
Agency approval of the | ||||||
26 | eligible remediation costs is granted. The credit is
not |
| |||||||
| |||||||
1 | available to any taxpayer if the taxpayer or any related | ||||||
2 | party caused or
contributed to, in any material respect, a | ||||||
3 | release of regulated substances on,
in, or under the site | ||||||
4 | that was identified and addressed by the remedial
action | ||||||
5 | pursuant to the Site Remediation Program of the | ||||||
6 | Environmental Protection
Act. After the Pollution Control | ||||||
7 | Board rules are adopted pursuant to the
Illinois | ||||||
8 | Administrative Procedure Act for the administration and | ||||||
9 | enforcement of
Section 58.9 of the Environmental | ||||||
10 | Protection Act, determinations as to credit
availability | ||||||
11 | for purposes of this Section shall be made consistent with | ||||||
12 | those
rules. For purposes of this Section, "taxpayer" | ||||||
13 | includes a person whose tax
attributes the taxpayer has | ||||||
14 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
15 | and "related party" includes the persons disallowed a | ||||||
16 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
17 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
18 | a related taxpayer, as well as any of its
partners. The | ||||||
19 | credit allowed against the tax imposed by subsections (a) | ||||||
20 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
21 | remediation costs in
excess of $100,000 per site, except | ||||||
22 | that the $100,000 threshold shall not apply
to any site | ||||||
23 | contained in an enterprise zone as determined by the | ||||||
24 | Department of
Commerce and Community Affairs (now | ||||||
25 | Department of Commerce and Economic Opportunity). The | ||||||
26 | total credit allowed shall not exceed
$40,000 per year with |
| |||||||
| |||||||
1 | a maximum total of $150,000 per site. For partners and
| ||||||
2 | shareholders of subchapter S corporations, there shall be | ||||||
3 | allowed a credit
under this subsection to be determined in | ||||||
4 | accordance with the determination of
income and | ||||||
5 | distributive share of income under Sections 702 and 704 and
| ||||||
6 | subchapter S of the Internal Revenue Code. | ||||||
7 | (ii) A credit allowed under this subsection that is | ||||||
8 | unused in the year
the credit is earned may be carried | ||||||
9 | forward to each of the 5 taxable years
following the year | ||||||
10 | for which the credit is first earned until it is used.
The | ||||||
11 | term "unused credit" does not include any amounts of | ||||||
12 | unreimbursed eligible
remediation costs in excess of the | ||||||
13 | maximum credit per site authorized under
paragraph (i). | ||||||
14 | This credit shall be applied first to the earliest year
for | ||||||
15 | which there is a liability. If there is a credit under this | ||||||
16 | subsection
from more than one tax year that is available to | ||||||
17 | offset a liability, the
earliest credit arising under this | ||||||
18 | subsection shall be applied first. A
credit allowed under | ||||||
19 | this subsection may be sold to a buyer as part of a sale
of | ||||||
20 | all or part of the remediation site for which the credit | ||||||
21 | was granted. The
purchaser of a remediation site and the | ||||||
22 | tax credit shall succeed to the unused
credit and remaining | ||||||
23 | carry-forward period of the seller. To perfect the
| ||||||
24 | transfer, the assignor shall record the transfer in the | ||||||
25 | chain of title for the
site and provide written notice to | ||||||
26 | the Director of the Illinois Department of
Revenue of the |
| |||||||
| |||||||
1 | assignor's intent to sell the remediation site and the | ||||||
2 | amount of
the tax credit to be transferred as a portion of | ||||||
3 | the sale. In no event may a
credit be transferred to any | ||||||
4 | taxpayer if the taxpayer or a related party would
not be | ||||||
5 | eligible under the provisions of subsection (i). | ||||||
6 | (iii) For purposes of this Section, the term "site" | ||||||
7 | shall have the same
meaning as under Section 58.2 of the | ||||||
8 | Environmental Protection Act. | ||||||
9 | (m) Education expense credit. Beginning with tax years | ||||||
10 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
11 | of one or more qualifying pupils shall be allowed a credit
| ||||||
12 | against the tax imposed by subsections (a) and (b) of this | ||||||
13 | Section for
qualified education expenses incurred on behalf of | ||||||
14 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
15 | qualified education expenses, but in no
event may the total | ||||||
16 | credit under this subsection claimed by a
family that is the
| ||||||
17 | custodian of qualifying pupils exceed (i) $500 for tax years | ||||||
18 | ending prior to December 31, 2017, and (ii) $750 for tax years | ||||||
19 | ending on or after December 31, 2017 and ending prior to | ||||||
20 | December 31, 2020, and (iii) $2,500 for tax years ending on or | ||||||
21 | after December 31, 2020 . In no event shall a credit under
this | ||||||
22 | subsection reduce the taxpayer's liability under this Act to | ||||||
23 | less than
zero. Notwithstanding any other provision of law, for | ||||||
24 | taxable years beginning on or after January 1, 2017, no | ||||||
25 | taxpayer may claim a credit under this subsection (m) if the | ||||||
26 | taxpayer's adjusted gross income for the taxable year exceeds |
| |||||||
| |||||||
1 | (i) $500,000, in the case of spouses filing a joint federal tax | ||||||
2 | return or (ii) $250,000, in the case of all other taxpayers. | ||||||
3 | This subsection is exempt from the provisions of Section 250 of | ||||||
4 | this
Act. | ||||||
5 | For purposes of this subsection: | ||||||
6 | "Qualifying pupils" means individuals who (i) are | ||||||
7 | residents of the State of
Illinois, (ii) are under the age of | ||||||
8 | 21 at the close of the school year for
which a credit is | ||||||
9 | sought, and (iii) during the school year for which a credit
is | ||||||
10 | sought were full-time pupils enrolled in a kindergarten through | ||||||
11 | twelfth
grade education program at any school, as defined in | ||||||
12 | this subsection. | ||||||
13 | "Qualified education expense" means the amount incurred
on | ||||||
14 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
15 | book fees, and
lab fees at the school in which the pupil is | ||||||
16 | enrolled during the regular school
year. | ||||||
17 | "School" means any public or nonpublic elementary or | ||||||
18 | secondary school in
Illinois that is in compliance with Title | ||||||
19 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
20 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
21 | except that nothing shall be construed to require a child to
| ||||||
22 | attend any particular public or nonpublic school to qualify for | ||||||
23 | the credit
under this Section. | ||||||
24 | "Custodian" means, with respect to qualifying pupils, an | ||||||
25 | Illinois resident
who is a parent, the parents, a legal | ||||||
26 | guardian, or the legal guardians of the
qualifying pupils. |
| |||||||
| |||||||
1 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
2 | credit.
| ||||||
3 | (i) For tax years ending on or after December 31, 2006, | ||||||
4 | a taxpayer shall be allowed a credit against the tax | ||||||
5 | imposed by subsections (a) and (b) of this Section for | ||||||
6 | certain amounts paid for unreimbursed eligible remediation | ||||||
7 | costs, as specified in this subsection. For purposes of | ||||||
8 | this Section, "unreimbursed eligible remediation costs" | ||||||
9 | means costs approved by the Illinois Environmental | ||||||
10 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
11 | Environmental Protection Act that were paid in performing | ||||||
12 | environmental remediation at a site within a River Edge | ||||||
13 | Redevelopment Zone for which a No Further Remediation | ||||||
14 | Letter was issued by the Agency and recorded under Section | ||||||
15 | 58.10 of the Environmental Protection Act. The credit must | ||||||
16 | be claimed for the taxable year in which Agency approval of | ||||||
17 | the eligible remediation costs is granted. The credit is | ||||||
18 | not available to any taxpayer if the taxpayer or any | ||||||
19 | related party caused or contributed to, in any material | ||||||
20 | respect, a release of regulated substances on, in, or under | ||||||
21 | the site that was identified and addressed by the remedial | ||||||
22 | action pursuant to the Site Remediation Program of the | ||||||
23 | Environmental Protection Act. Determinations as to credit | ||||||
24 | availability for purposes of this Section shall be made | ||||||
25 | consistent with rules adopted by the Pollution Control | ||||||
26 | Board pursuant to the Illinois Administrative Procedure |
| |||||||
| |||||||
1 | Act for the administration and enforcement of Section 58.9 | ||||||
2 | of the Environmental Protection Act. For purposes of this | ||||||
3 | Section, "taxpayer" includes a person whose tax attributes | ||||||
4 | the taxpayer has succeeded to under Section 381 of the | ||||||
5 | Internal Revenue Code and "related party" includes the | ||||||
6 | persons disallowed a deduction for losses by paragraphs | ||||||
7 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
8 | Code by virtue of being a related taxpayer, as well as any | ||||||
9 | of its partners. The credit allowed against the tax imposed | ||||||
10 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
11 | unreimbursed eligible remediation costs in excess of | ||||||
12 | $100,000 per site. | ||||||
13 | (ii) A credit allowed under this subsection that is | ||||||
14 | unused in the year the credit is earned may be carried | ||||||
15 | forward to each of the 5 taxable years following the year | ||||||
16 | for which the credit is first earned until it is used. This | ||||||
17 | credit shall be applied first to the earliest year for | ||||||
18 | which there is a liability. If there is a credit under this | ||||||
19 | subsection from more than one tax year that is available to | ||||||
20 | offset a liability, the earliest credit arising under this | ||||||
21 | subsection shall be applied first. A credit allowed under | ||||||
22 | this subsection may be sold to a buyer as part of a sale of | ||||||
23 | all or part of the remediation site for which the credit | ||||||
24 | was granted. The purchaser of a remediation site and the | ||||||
25 | tax credit shall succeed to the unused credit and remaining | ||||||
26 | carry-forward period of the seller. To perfect the |
| |||||||
| |||||||
1 | transfer, the assignor shall record the transfer in the | ||||||
2 | chain of title for the site and provide written notice to | ||||||
3 | the Director of the Illinois Department of Revenue of the | ||||||
4 | assignor's intent to sell the remediation site and the | ||||||
5 | amount of the tax credit to be transferred as a portion of | ||||||
6 | the sale. In no event may a credit be transferred to any | ||||||
7 | taxpayer if the taxpayer or a related party would not be | ||||||
8 | eligible under the provisions of subsection (i). | ||||||
9 | (iii) For purposes of this Section, the term "site" | ||||||
10 | shall have the same meaning as under Section 58.2 of the | ||||||
11 | Environmental Protection Act. | ||||||
12 | (o) For each of taxable years during the Compassionate Use | ||||||
13 | of Medical Cannabis Program, a surcharge is imposed on all | ||||||
14 | taxpayers on income arising from the sale or exchange of | ||||||
15 | capital assets, depreciable business property, real property | ||||||
16 | used in the trade or business, and Section 197 intangibles of | ||||||
17 | an organization registrant under the Compassionate Use of | ||||||
18 | Medical Cannabis Program Act. The amount of the surcharge is | ||||||
19 | equal to the amount of federal income tax liability for the | ||||||
20 | taxable year attributable to those sales and exchanges. The | ||||||
21 | surcharge imposed does not apply if: | ||||||
22 | (1) the medical cannabis cultivation center | ||||||
23 | registration, medical cannabis dispensary registration, or | ||||||
24 | the property of a registration is transferred as a result | ||||||
25 | of any of the following: | ||||||
26 | (A) bankruptcy, a receivership, or a debt |
| |||||||
| |||||||
1 | adjustment initiated by or against the initial | ||||||
2 | registration or the substantial owners of the initial | ||||||
3 | registration; | ||||||
4 | (B) cancellation, revocation, or termination of | ||||||
5 | any registration by the Illinois Department of Public | ||||||
6 | Health; | ||||||
7 | (C) a determination by the Illinois Department of | ||||||
8 | Public Health that transfer of the registration is in | ||||||
9 | the best interests of Illinois qualifying patients as | ||||||
10 | defined by the Compassionate Use of Medical Cannabis | ||||||
11 | Program Act; | ||||||
12 | (D) the death of an owner of the equity interest in | ||||||
13 | a registrant; | ||||||
14 | (E) the acquisition of a controlling interest in | ||||||
15 | the stock or substantially all of the assets of a | ||||||
16 | publicly traded company; | ||||||
17 | (F) a transfer by a parent company to a wholly | ||||||
18 | owned subsidiary; or | ||||||
19 | (G) the transfer or sale to or by one person to | ||||||
20 | another person where both persons were initial owners | ||||||
21 | of the registration when the registration was issued; | ||||||
22 | or | ||||||
23 | (2) the cannabis cultivation center registration, | ||||||
24 | medical cannabis dispensary registration, or the | ||||||
25 | controlling interest in a registrant's property is | ||||||
26 | transferred in a transaction to lineal descendants in which |
| |||||||
| |||||||
1 | no gain or loss is recognized or as a result of a | ||||||
2 | transaction in accordance with Section 351 of the Internal | ||||||
3 | Revenue Code in which no gain or loss is recognized. | ||||||
4 | (Source: P.A. 100-22, eff. 7-6-17; 101-9, eff. 6-5-19; 101-31, | ||||||
5 | eff. 6-28-19; 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; | ||||||
6 | revised 9-17-19.) | ||||||
7 | (Text of Section after amendment by P.A. 101-8 )
| ||||||
8 | Sec. 201. Tax imposed. | ||||||
9 | (a) In general. A tax measured by net income is hereby | ||||||
10 | imposed on every
individual, corporation, trust and estate for | ||||||
11 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
12 | of earning or receiving income in or
as a resident of this | ||||||
13 | State. Such tax shall be in addition to all other
occupation or | ||||||
14 | privilege taxes imposed by this State or by any municipal
| ||||||
15 | corporation or political subdivision thereof. | ||||||
16 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
17 | Section shall be
determined as follows, except as adjusted by | ||||||
18 | subsection (d-1): | ||||||
19 | (1) In the case of an individual, trust or estate, for | ||||||
20 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
21 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
22 | year. | ||||||
23 | (2) In the case of an individual, trust or estate, for | ||||||
24 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
25 | after June 30, 1989, an amount
equal to the sum of (i) 2 |
| |||||||
| |||||||
1 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
2 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
3 | 3% of the
taxpayer's net income for the period after June | ||||||
4 | 30, 1989, as calculated
under Section 202.3. | ||||||
5 | (3) In the case of an individual, trust or estate, for | ||||||
6 | taxable years
beginning after June 30, 1989, and ending | ||||||
7 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
8 | taxpayer's net
income for the taxable year. | ||||||
9 | (4) In the case of an individual, trust, or estate, for | ||||||
10 | taxable years beginning prior to January 1, 2011, and | ||||||
11 | ending after December 31, 2010, an amount equal to the sum | ||||||
12 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
13 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
14 | (ii) 5% of the taxpayer's net income for the period after | ||||||
15 | December 31, 2010, as calculated under Section 202.5. | ||||||
16 | (5) In the case of an individual, trust, or estate, for | ||||||
17 | taxable years beginning on or after January 1, 2011, and | ||||||
18 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
19 | the taxpayer's net income for the taxable year. | ||||||
20 | (5.1) In the case of an individual, trust, or estate, | ||||||
21 | for taxable years beginning prior to January 1, 2015, and | ||||||
22 | ending after December 31, 2014, an amount equal to the sum | ||||||
23 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
24 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
25 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
26 | after December 31, 2014, as calculated under Section 202.5. |
| |||||||
| |||||||
1 | (5.2) In the case of an individual, trust, or estate, | ||||||
2 | for taxable years beginning on or after January 1, 2015, | ||||||
3 | and ending prior to July 1, 2017, an amount equal to 3.75% | ||||||
4 | of the taxpayer's net income for the taxable year. | ||||||
5 | (5.3) In the case of an individual, trust, or estate, | ||||||
6 | for taxable years beginning prior to July 1, 2017, and | ||||||
7 | ending after June 30, 2017, an amount equal to the sum of | ||||||
8 | (i) 3.75% of the taxpayer's net income for the period prior | ||||||
9 | to July 1, 2017, as calculated under Section 202.5, and | ||||||
10 | (ii) 4.95% of the taxpayer's net income for the period | ||||||
11 | after June 30, 2017, as calculated under Section 202.5. | ||||||
12 | (5.4) In the case of an individual, trust, or estate, | ||||||
13 | for taxable years beginning on or after July 1, 2017 and | ||||||
14 | beginning prior to January 1, 2021, an amount equal to | ||||||
15 | 4.95% of the taxpayer's net income for the taxable year. | ||||||
16 | (5.5) In the case of an individual, trust, or estate, | ||||||
17 | for taxable years beginning on or after January 1, 2021, an | ||||||
18 | amount calculated under the rate structure set forth in | ||||||
19 | Section 201.1. | ||||||
20 | (6) In the case of a corporation, for taxable years
| ||||||
21 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
22 | taxpayer's net income for the taxable year. | ||||||
23 | (7) In the case of a corporation, for taxable years | ||||||
24 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
25 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
26 | taxpayer's net income for the period prior to July 1, 1989,
|
| |||||||
| |||||||
1 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
2 | taxpayer's net
income for the period after June 30, 1989, | ||||||
3 | as calculated under Section
202.3. | ||||||
4 | (8) In the case of a corporation, for taxable years | ||||||
5 | beginning after
June 30, 1989, and ending prior to January | ||||||
6 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
7 | income for the
taxable year. | ||||||
8 | (9) In the case of a corporation, for taxable years | ||||||
9 | beginning prior to January 1, 2011, and ending after | ||||||
10 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
11 | of the taxpayer's net income for the period prior to | ||||||
12 | January 1, 2011, as calculated under Section 202.5, and | ||||||
13 | (ii) 7% of the taxpayer's net income for the period after | ||||||
14 | December 31, 2010, as calculated under Section 202.5. | ||||||
15 | (10) In the case of a corporation, for taxable years | ||||||
16 | beginning on or after January 1, 2011, and ending prior to | ||||||
17 | January 1, 2015, an amount equal to 7% of the taxpayer's | ||||||
18 | net income for the taxable year. | ||||||
19 | (11) In the case of a corporation, for taxable years | ||||||
20 | beginning prior to January 1, 2015, and ending after | ||||||
21 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
22 | the taxpayer's net income for the period prior to January | ||||||
23 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
24 | of the taxpayer's net income for the period after December | ||||||
25 | 31, 2014, as calculated under Section 202.5. | ||||||
26 | (12) In the case of a corporation, for taxable years |
| |||||||
| |||||||
1 | beginning on or after January 1, 2015, and ending prior to | ||||||
2 | July 1, 2017, an amount equal to 5.25% of the taxpayer's | ||||||
3 | net income for the taxable year. | ||||||
4 | (13) In the case of a corporation, for taxable years | ||||||
5 | beginning prior to July 1, 2017, and ending after June 30, | ||||||
6 | 2017, an amount equal to the sum of (i) 5.25% of the | ||||||
7 | taxpayer's net income for the period prior to July 1, 2017, | ||||||
8 | as calculated under Section 202.5, and (ii) 7% of the | ||||||
9 | taxpayer's net income for the period after June 30, 2017, | ||||||
10 | as calculated under Section 202.5. | ||||||
11 | (14) In the case of a corporation, for taxable years | ||||||
12 | beginning on or after July 1, 2017 and beginning prior to | ||||||
13 | January 1, 2021, an amount equal to 7% of the taxpayer's | ||||||
14 | net income for the taxable year. | ||||||
15 | (15) In the case of a corporation, for taxable years | ||||||
16 | beginning on or after January 1, 2021, an amount equal to | ||||||
17 | 7.99% of the taxpayer's net income for the taxable year. | ||||||
18 | The rates under this subsection (b) are subject to the | ||||||
19 | provisions of Section 201.5. | ||||||
20 | (b-5) Surcharge; sale or exchange of assets, properties, | ||||||
21 | and intangibles of organization gaming licensees. For each of | ||||||
22 | taxable years 2019 through 2027, a surcharge is imposed on all | ||||||
23 | taxpayers on income arising from the sale or exchange of | ||||||
24 | capital assets, depreciable business property, real property | ||||||
25 | used in the trade or business, and Section 197 intangibles (i) | ||||||
26 | of an organization licensee under the Illinois Horse Racing Act |
| |||||||
| |||||||
1 | of 1975 and (ii) of an organization gaming licensee under the | ||||||
2 | Illinois Gambling Act. The amount of the surcharge is equal to | ||||||
3 | the amount of federal income tax liability for the taxable year | ||||||
4 | attributable to those sales and exchanges. The surcharge | ||||||
5 | imposed shall not apply if: | ||||||
6 | (1) the organization gaming license, organization | ||||||
7 | license, or racetrack property is transferred as a result | ||||||
8 | of any of the following: | ||||||
9 | (A) bankruptcy, a receivership, or a debt | ||||||
10 | adjustment initiated by or against the initial | ||||||
11 | licensee or the substantial owners of the initial | ||||||
12 | licensee; | ||||||
13 | (B) cancellation, revocation, or termination of | ||||||
14 | any such license by the Illinois Gaming Board or the | ||||||
15 | Illinois Racing Board; | ||||||
16 | (C) a determination by the Illinois Gaming Board | ||||||
17 | that transfer of the license is in the best interests | ||||||
18 | of Illinois gaming; | ||||||
19 | (D) the death of an owner of the equity interest in | ||||||
20 | a licensee; | ||||||
21 | (E) the acquisition of a controlling interest in | ||||||
22 | the stock or substantially all of the assets of a | ||||||
23 | publicly traded company; | ||||||
24 | (F) a transfer by a parent company to a wholly | ||||||
25 | owned subsidiary; or | ||||||
26 | (G) the transfer or sale to or by one person to |
| |||||||
| |||||||
1 | another person where both persons were initial owners | ||||||
2 | of the license when the license was issued; or | ||||||
3 | (2) the controlling interest in the organization | ||||||
4 | gaming license, organization license, or racetrack | ||||||
5 | property is transferred in a transaction to lineal | ||||||
6 | descendants in which no gain or loss is recognized or as a | ||||||
7 | result of a transaction in accordance with Section 351 of | ||||||
8 | the Internal Revenue Code in which no gain or loss is | ||||||
9 | recognized; or | ||||||
10 | (3) live horse racing was not conducted in 2010 at a | ||||||
11 | racetrack located within 3 miles of the Mississippi River | ||||||
12 | under a license issued pursuant to the Illinois Horse | ||||||
13 | Racing Act of 1975. | ||||||
14 | The transfer of an organization gaming license, | ||||||
15 | organization license, or racetrack property by a person other | ||||||
16 | than the initial licensee to receive the organization gaming | ||||||
17 | license is not subject to a surcharge. The Department shall | ||||||
18 | adopt rules necessary to implement and administer this | ||||||
19 | subsection. | ||||||
20 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
21 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
22 | income
tax, there is also hereby imposed the Personal Property | ||||||
23 | Tax Replacement
Income Tax measured by net income on every | ||||||
24 | corporation (including Subchapter
S corporations), partnership | ||||||
25 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
26 | Such taxes are imposed on the privilege of earning or
receiving |
| |||||||
| |||||||
1 | income in or as a resident of this State. The Personal Property
| ||||||
2 | Tax Replacement Income Tax shall be in addition to the income | ||||||
3 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
4 | addition to all other
occupation or privilege taxes imposed by | ||||||
5 | this State or by any municipal
corporation or political | ||||||
6 | subdivision thereof. | ||||||
7 | (d) Additional Personal Property Tax Replacement Income | ||||||
8 | Tax Rates.
The personal property tax replacement income tax | ||||||
9 | imposed by this subsection
and subsection (c) of this Section | ||||||
10 | in the case of a corporation, other
than a Subchapter S | ||||||
11 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
12 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
13 | income for the taxable year, except that
beginning on January | ||||||
14 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
15 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
16 | partnership, trust or a Subchapter S corporation shall be an | ||||||
17 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
18 | for the taxable year. | ||||||
19 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
20 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
21 | Illinois Insurance Code,
whose state or country of domicile | ||||||
22 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
23 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
24 | are 50% or more of its total insurance
premiums as determined | ||||||
25 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
26 | that for purposes of this determination premiums from |
| |||||||
| |||||||
1 | reinsurance do
not include premiums from inter-affiliate | ||||||
2 | reinsurance arrangements),
beginning with taxable years ending | ||||||
3 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
4 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
5 | increased) to the rate at which the total amount of tax imposed | ||||||
6 | under this Act,
net of all credits allowed under this Act, | ||||||
7 | shall equal (i) the total amount of
tax that would be imposed | ||||||
8 | on the foreign insurer's net income allocable to
Illinois for | ||||||
9 | the taxable year by such foreign insurer's state or country of
| ||||||
10 | domicile if that net income were subject to all income taxes | ||||||
11 | and taxes
measured by net income imposed by such foreign | ||||||
12 | insurer's state or country of
domicile, net of all credits | ||||||
13 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
14 | income by the foreign insurer's state of domicile.
For the | ||||||
15 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
16 | a
mutual insurer under common management. | ||||||
17 | (1) For the purposes of subsection (d-1), in no event | ||||||
18 | shall the sum of the
rates of tax imposed by subsections | ||||||
19 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
20 | (A) the total amount of tax imposed on such foreign | ||||||
21 | insurer under
this Act for a taxable year, net of all | ||||||
22 | credits allowed under this Act, plus | ||||||
23 | (B) the privilege tax imposed by Section 409 of the | ||||||
24 | Illinois Insurance
Code, the fire insurance company | ||||||
25 | tax imposed by Section 12 of the Fire
Investigation | ||||||
26 | Act, and the fire department taxes imposed under |
| |||||||
| |||||||
1 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
2 | equals 1.25% for taxable years ending prior to December 31, | ||||||
3 | 2003, or
1.75% for taxable years ending on or after | ||||||
4 | December 31, 2003, of the net
taxable premiums written for | ||||||
5 | the taxable year,
as described by subsection (1) of Section | ||||||
6 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
7 | no event increase the rates imposed under subsections
(b) | ||||||
8 | and (d). | ||||||
9 | (2) Any reduction in the rates of tax imposed by this | ||||||
10 | subsection shall be
applied first against the rates imposed | ||||||
11 | by subsection (b) and only after the
tax imposed by | ||||||
12 | subsection (a) net of all credits allowed under this | ||||||
13 | Section
other than the credit allowed under subsection (i) | ||||||
14 | has been reduced to zero,
against the rates imposed by | ||||||
15 | subsection (d). | ||||||
16 | This subsection (d-1) is exempt from the provisions of | ||||||
17 | Section 250. | ||||||
18 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
19 | against the Personal Property Tax Replacement Income Tax for
| ||||||
20 | investment in qualified property. | ||||||
21 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
22 | of
the basis of qualified property placed in service during | ||||||
23 | the taxable year,
provided such property is placed in | ||||||
24 | service on or after
July 1, 1984. There shall be allowed an | ||||||
25 | additional credit equal
to .5% of the basis of qualified | ||||||
26 | property placed in service during the
taxable year, |
| |||||||
| |||||||
1 | provided such property is placed in service on or
after | ||||||
2 | July 1, 1986, and the taxpayer's base employment
within | ||||||
3 | Illinois has increased by 1% or more over the preceding | ||||||
4 | year as
determined by the taxpayer's employment records | ||||||
5 | filed with the
Illinois Department of Employment Security. | ||||||
6 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
7 | met the 1% growth in base employment for
the first year in | ||||||
8 | which they file employment records with the Illinois
| ||||||
9 | Department of Employment Security. The provisions added to | ||||||
10 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
11 | Act 87-895) shall be
construed as declaratory of existing | ||||||
12 | law and not as a new enactment. If,
in any year, the | ||||||
13 | increase in base employment within Illinois over the
| ||||||
14 | preceding year is less than 1%, the additional credit shall | ||||||
15 | be limited to that
percentage times a fraction, the | ||||||
16 | numerator of which is .5% and the denominator
of which is | ||||||
17 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
18 | not be
allowed to the extent that it would reduce a | ||||||
19 | taxpayer's liability in any tax
year below zero, nor may | ||||||
20 | any credit for qualified property be allowed for any
year | ||||||
21 | other than the year in which the property was placed in | ||||||
22 | service in
Illinois. For tax years ending on or after | ||||||
23 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
24 | credit shall be allowed for the tax year in
which the | ||||||
25 | property is placed in service, or, if the amount of the | ||||||
26 | credit
exceeds the tax liability for that year, whether it |
| |||||||
| |||||||
1 | exceeds the original
liability or the liability as later | ||||||
2 | amended, such excess may be carried
forward and applied to | ||||||
3 | the tax liability of the 5 taxable years following
the | ||||||
4 | excess credit years if the taxpayer (i) makes investments | ||||||
5 | which cause
the creation of a minimum of 2,000 full-time | ||||||
6 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
7 | enterprise zone established pursuant to the Illinois
| ||||||
8 | Enterprise Zone Act and (iii) is certified by the | ||||||
9 | Department of Commerce
and Community Affairs (now | ||||||
10 | Department of Commerce and Economic Opportunity) as | ||||||
11 | complying with the requirements specified in
clause (i) and | ||||||
12 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
13 | Community Affairs (now Department of Commerce and Economic | ||||||
14 | Opportunity) shall notify the Department of Revenue of all | ||||||
15 | such
certifications immediately. For tax years ending | ||||||
16 | after December 31, 1988,
the credit shall be allowed for | ||||||
17 | the tax year in which the property is
placed in service, | ||||||
18 | or, if the amount of the credit exceeds the tax
liability | ||||||
19 | for that year, whether it exceeds the original liability or | ||||||
20 | the
liability as later amended, such excess may be carried | ||||||
21 | forward and applied
to the tax liability of the 5 taxable | ||||||
22 | years following the excess credit
years. The credit shall | ||||||
23 | be applied to the earliest year for which there is
a | ||||||
24 | liability. If there is credit from more than one tax year | ||||||
25 | that is
available to offset a liability, earlier credit | ||||||
26 | shall be applied first. |
| |||||||
| |||||||
1 | (2) The term "qualified property" means property | ||||||
2 | which: | ||||||
3 | (A) is tangible, whether new or used, including | ||||||
4 | buildings and structural
components of buildings and | ||||||
5 | signs that are real property, but not including
land or | ||||||
6 | improvements to real property that are not a structural | ||||||
7 | component of a
building such as landscaping, sewer | ||||||
8 | lines, local access roads, fencing, parking
lots, and | ||||||
9 | other appurtenances; | ||||||
10 | (B) is depreciable pursuant to Section 167 of the | ||||||
11 | Internal Revenue Code,
except that "3-year property" | ||||||
12 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
13 | eligible for the credit provided by this subsection | ||||||
14 | (e); | ||||||
15 | (C) is acquired by purchase as defined in Section | ||||||
16 | 179(d) of
the Internal Revenue Code; | ||||||
17 | (D) is used in Illinois by a taxpayer who is | ||||||
18 | primarily engaged in
manufacturing, or in mining coal | ||||||
19 | or fluorite, or in retailing, or was placed in service | ||||||
20 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
21 | Zone established pursuant to the River Edge | ||||||
22 | Redevelopment Zone Act; and | ||||||
23 | (E) has not previously been used in Illinois in | ||||||
24 | such a manner and by
such a person as would qualify for | ||||||
25 | the credit provided by this subsection
(e) or | ||||||
26 | subsection (f). |
| |||||||
| |||||||
1 | (3) For purposes of this subsection (e), | ||||||
2 | "manufacturing" means
the material staging and production | ||||||
3 | of tangible personal property by
procedures commonly | ||||||
4 | regarded as manufacturing, processing, fabrication, or
| ||||||
5 | assembling which changes some existing material into new | ||||||
6 | shapes, new
qualities, or new combinations. For purposes of | ||||||
7 | this subsection
(e) the term "mining" shall have the same | ||||||
8 | meaning as the term "mining" in
Section 613(c) of the | ||||||
9 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
10 | the term "retailing" means the sale of tangible personal | ||||||
11 | property for use or consumption and not for resale, or
| ||||||
12 | services rendered in conjunction with the sale of tangible | ||||||
13 | personal property for use or consumption and not for | ||||||
14 | resale. For purposes of this subsection (e), "tangible | ||||||
15 | personal property" has the same meaning as when that term | ||||||
16 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
17 | taxable years ending after December 31, 2008, does not | ||||||
18 | include the generation, transmission, or distribution of | ||||||
19 | electricity. | ||||||
20 | (4) The basis of qualified property shall be the basis
| ||||||
21 | used to compute the depreciation deduction for federal | ||||||
22 | income tax purposes. | ||||||
23 | (5) If the basis of the property for federal income tax | ||||||
24 | depreciation
purposes is increased after it has been placed | ||||||
25 | in service in Illinois by
the taxpayer, the amount of such | ||||||
26 | increase shall be deemed property placed
in service on the |
| |||||||
| |||||||
1 | date of such increase in basis. | ||||||
2 | (6) The term "placed in service" shall have the same
| ||||||
3 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
4 | (7) If during any taxable year, any property ceases to
| ||||||
5 | be qualified property in the hands of the taxpayer within | ||||||
6 | 48 months after
being placed in service, or the situs of | ||||||
7 | any qualified property is
moved outside Illinois within 48 | ||||||
8 | months after being placed in service, the
Personal Property | ||||||
9 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
10 | increased. Such increase shall be determined by (i) | ||||||
11 | recomputing the
investment credit which would have been | ||||||
12 | allowed for the year in which
credit for such property was | ||||||
13 | originally allowed by eliminating such
property from such | ||||||
14 | computation and, (ii) subtracting such recomputed credit
| ||||||
15 | from the amount of credit previously allowed. For the | ||||||
16 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
17 | qualified property resulting
from a redetermination of the | ||||||
18 | purchase price shall be deemed a disposition
of qualified | ||||||
19 | property to the extent of such reduction. | ||||||
20 | (8) Unless the investment credit is extended by law, | ||||||
21 | the
basis of qualified property shall not include costs | ||||||
22 | incurred after
December 31, 2018, except for costs incurred | ||||||
23 | pursuant to a binding
contract entered into on or before | ||||||
24 | December 31, 2018. | ||||||
25 | (9) Each taxable year ending before December 31, 2000, | ||||||
26 | a partnership may
elect to pass through to its
partners the |
| |||||||
| |||||||
1 | credits to which the partnership is entitled under this | ||||||
2 | subsection
(e) for the taxable year. A partner may use the | ||||||
3 | credit allocated to him or her
under this paragraph only | ||||||
4 | against the tax imposed in subsections (c) and (d) of
this | ||||||
5 | Section. If the partnership makes that election, those | ||||||
6 | credits shall be
allocated among the partners in the | ||||||
7 | partnership in accordance with the rules
set forth in | ||||||
8 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
9 | promulgated under that Section, and the allocated amount of | ||||||
10 | the credits shall
be allowed to the partners for that | ||||||
11 | taxable year. The partnership shall make
this election on | ||||||
12 | its Personal Property Tax Replacement Income Tax return for
| ||||||
13 | that taxable year. The election to pass through the credits | ||||||
14 | shall be
irrevocable. | ||||||
15 | For taxable years ending on or after December 31, 2000, | ||||||
16 | a
partner that qualifies its
partnership for a subtraction | ||||||
17 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
18 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
19 | S
corporation for a subtraction under subparagraph (S) of | ||||||
20 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
21 | allowed a credit under this subsection
(e) equal to its | ||||||
22 | share of the credit earned under this subsection (e) during
| ||||||
23 | the taxable year by the partnership or Subchapter S | ||||||
24 | corporation, determined in
accordance with the | ||||||
25 | determination of income and distributive share of
income | ||||||
26 | under Sections 702 and 704 and Subchapter S of the Internal |
| |||||||
| |||||||
1 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
2 | of Section 250. | ||||||
3 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
4 | Redevelopment Zone. | ||||||
5 | (1) A taxpayer shall be allowed a credit against the | ||||||
6 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
7 | investment in qualified
property which is placed in service | ||||||
8 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
9 | Enterprise Zone Act or, for property placed in service on | ||||||
10 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
11 | established pursuant to the River Edge Redevelopment Zone | ||||||
12 | Act. For partners, shareholders
of Subchapter S | ||||||
13 | corporations, and owners of limited liability companies,
| ||||||
14 | if the liability company is treated as a partnership for | ||||||
15 | purposes of
federal and State income taxation, there shall | ||||||
16 | be allowed a credit under
this subsection (f) to be | ||||||
17 | determined in accordance with the determination
of income | ||||||
18 | and distributive share of income under Sections 702 and 704 | ||||||
19 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
20 | shall be .5% of the
basis for such property. The credit | ||||||
21 | shall be available only in the taxable
year in which the | ||||||
22 | property is placed in service in the Enterprise Zone or | ||||||
23 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
24 | the extent that it would reduce a taxpayer's
liability for | ||||||
25 | the tax imposed by subsections (a) and (b) of this Section | ||||||
26 | to
below zero. For tax years ending on or after December |
| |||||||
| |||||||
1 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
2 | which the property is placed in
service, or, if the amount | ||||||
3 | of the credit exceeds the tax liability for that
year, | ||||||
4 | whether it exceeds the original liability or the liability | ||||||
5 | as later
amended, such excess may be carried forward and | ||||||
6 | applied to the tax
liability of the 5 taxable years | ||||||
7 | following the excess credit year.
The credit shall be | ||||||
8 | applied to the earliest year for which there is a
| ||||||
9 | liability. If there is credit from more than one tax year | ||||||
10 | that is available
to offset a liability, the credit | ||||||
11 | accruing first in time shall be applied
first. | ||||||
12 | (2) The term qualified property means property which: | ||||||
13 | (A) is tangible, whether new or used, including | ||||||
14 | buildings and
structural components of buildings; | ||||||
15 | (B) is depreciable pursuant to Section 167 of the | ||||||
16 | Internal Revenue
Code, except that "3-year property" | ||||||
17 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
18 | eligible for the credit provided by this subsection | ||||||
19 | (f); | ||||||
20 | (C) is acquired by purchase as defined in Section | ||||||
21 | 179(d) of
the Internal Revenue Code; | ||||||
22 | (D) is used in the Enterprise Zone or River Edge | ||||||
23 | Redevelopment Zone by the taxpayer; and | ||||||
24 | (E) has not been previously used in Illinois in | ||||||
25 | such a manner and by
such a person as would qualify for | ||||||
26 | the credit provided by this subsection
(f) or |
| |||||||
| |||||||
1 | subsection (e). | ||||||
2 | (3) The basis of qualified property shall be the basis | ||||||
3 | used to compute
the depreciation deduction for federal | ||||||
4 | income tax purposes. | ||||||
5 | (4) If the basis of the property for federal income tax | ||||||
6 | depreciation
purposes is increased after it has been placed | ||||||
7 | in service in the Enterprise
Zone or River Edge | ||||||
8 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
9 | increase shall be deemed property
placed in service on the | ||||||
10 | date of such increase in basis. | ||||||
11 | (5) The term "placed in service" shall have the same | ||||||
12 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
13 | (6) If during any taxable year, any property ceases to | ||||||
14 | be qualified
property in the hands of the taxpayer within | ||||||
15 | 48 months after being placed
in service, or the situs of | ||||||
16 | any qualified property is moved outside the
Enterprise Zone | ||||||
17 | or River Edge Redevelopment Zone within 48 months after | ||||||
18 | being placed in service, the tax
imposed under subsections | ||||||
19 | (a) and (b) of this Section for such taxable year
shall be | ||||||
20 | increased. Such increase shall be determined by (i) | ||||||
21 | recomputing
the investment credit which would have been | ||||||
22 | allowed for the year in which
credit for such property was | ||||||
23 | originally allowed by eliminating such
property from such | ||||||
24 | computation, and (ii) subtracting such recomputed credit
| ||||||
25 | from the amount of credit previously allowed. For the | ||||||
26 | purposes of this
paragraph (6), a reduction of the basis of |
| |||||||
| |||||||
1 | qualified property resulting
from a redetermination of the | ||||||
2 | purchase price shall be deemed a disposition
of qualified | ||||||
3 | property to the extent of such reduction. | ||||||
4 | (7) There shall be allowed an additional credit equal | ||||||
5 | to 0.5% of the basis of qualified property placed in | ||||||
6 | service during the taxable year in a River Edge | ||||||
7 | Redevelopment Zone, provided such property is placed in | ||||||
8 | service on or after July 1, 2006, and the taxpayer's base | ||||||
9 | employment within Illinois has increased by 1% or more over | ||||||
10 | the preceding year as determined by the taxpayer's | ||||||
11 | employment records filed with the Illinois Department of | ||||||
12 | Employment Security. Taxpayers who are new to Illinois | ||||||
13 | shall be deemed to have met the 1% growth in base | ||||||
14 | employment for the first year in which they file employment | ||||||
15 | records with the Illinois Department of Employment | ||||||
16 | Security. If, in any year, the increase in base employment | ||||||
17 | within Illinois over the preceding year is less than 1%, | ||||||
18 | the additional credit shall be limited to that percentage | ||||||
19 | times a fraction, the numerator of which is 0.5% and the | ||||||
20 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
21 | (8) For taxable years beginning on or after January 1, | ||||||
22 | 2021, there shall be allowed an Enterprise Zone | ||||||
23 | construction jobs credit against the taxes imposed under | ||||||
24 | subsections (a) and (b) of this Section as provided in | ||||||
25 | Section 13 of the Illinois Enterprise Zone Act. | ||||||
26 | The credit or credits may not reduce the taxpayer's |
| |||||||
| |||||||
1 | liability to less than zero. If the amount of the credit or | ||||||
2 | credits exceeds the taxpayer's liability, the excess may be | ||||||
3 | carried forward and applied against the taxpayer's | ||||||
4 | liability in succeeding calendar years in the same manner | ||||||
5 | provided under paragraph (4) of Section 211 of this Act. | ||||||
6 | The credit or credits shall be applied to the earliest year | ||||||
7 | for which there is a tax liability. If there are credits | ||||||
8 | from more than one taxable year that are available to | ||||||
9 | offset a liability, the earlier credit shall be applied | ||||||
10 | first. | ||||||
11 | For partners, shareholders of Subchapter S | ||||||
12 | corporations, and owners of limited liability companies, | ||||||
13 | if the liability company is treated as a partnership for | ||||||
14 | the purposes of federal and State income taxation, there | ||||||
15 | shall be allowed a credit under this Section to be | ||||||
16 | determined in accordance with the determination of income | ||||||
17 | and distributive share of income under Sections 702 and 704 | ||||||
18 | and Subchapter S of the Internal Revenue Code. | ||||||
19 | The total aggregate amount of credits awarded under the | ||||||
20 | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this | ||||||
21 | amendatory Act of the 101st General Assembly ) shall not | ||||||
22 | exceed $20,000,000 in any State fiscal year . | ||||||
23 | This paragraph (8) is exempt from the provisions of | ||||||
24 | Section 250. | ||||||
25 | (g) (Blank). | ||||||
26 | (h) Investment credit; High Impact Business. |
| |||||||
| |||||||
1 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
2 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
3 | allowed a credit
against the tax imposed by subsections (a) | ||||||
4 | and (b) of this Section for
investment in qualified
| ||||||
5 | property which is placed in service by a Department of | ||||||
6 | Commerce and Economic Opportunity
designated High Impact | ||||||
7 | Business. The credit shall be .5% of the basis
for such | ||||||
8 | property. The credit shall not be available (i) until the | ||||||
9 | minimum
investments in qualified property set forth in | ||||||
10 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
11 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
12 | time authorized in subsection (b-5) of the Illinois
| ||||||
13 | Enterprise Zone Act for entities designated as High Impact | ||||||
14 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
15 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
16 | Act, and shall not be allowed to the extent that it would
| ||||||
17 | reduce a taxpayer's liability for the tax imposed by | ||||||
18 | subsections (a) and (b) of
this Section to below zero. The | ||||||
19 | credit applicable to such investments shall be
taken in the | ||||||
20 | taxable year in which such investments have been completed. | ||||||
21 | The
credit for additional investments beyond the minimum | ||||||
22 | investment by a designated
high impact business authorized | ||||||
23 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
24 | Enterprise Zone Act shall be available only in the taxable | ||||||
25 | year in
which the property is placed in service and shall | ||||||
26 | not be allowed to the extent
that it would reduce a |
| |||||||
| |||||||
1 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
2 | and (b) of this Section to below zero.
For tax years ending | ||||||
3 | on or after December 31, 1987, the credit shall be
allowed | ||||||
4 | for the tax year in which the property is placed in | ||||||
5 | service, or, if
the amount of the credit exceeds the tax | ||||||
6 | liability for that year, whether
it exceeds the original | ||||||
7 | liability or the liability as later amended, such
excess | ||||||
8 | may be carried forward and applied to the tax liability of | ||||||
9 | the 5
taxable years following the excess credit year. The | ||||||
10 | credit shall be
applied to the earliest year for which | ||||||
11 | there is a liability. If there is
credit from more than one | ||||||
12 | tax year that is available to offset a liability,
the | ||||||
13 | credit accruing first in time shall be applied first. | ||||||
14 | Changes made in this subdivision (h)(1) by Public Act | ||||||
15 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
16 | reflect existing law. | ||||||
17 | (2) The term qualified property means property which: | ||||||
18 | (A) is tangible, whether new or used, including | ||||||
19 | buildings and
structural components of buildings; | ||||||
20 | (B) is depreciable pursuant to Section 167 of the | ||||||
21 | Internal Revenue
Code, except that "3-year property" | ||||||
22 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
23 | eligible for the credit provided by this subsection | ||||||
24 | (h); | ||||||
25 | (C) is acquired by purchase as defined in Section | ||||||
26 | 179(d) of the
Internal Revenue Code; and |
| |||||||
| |||||||
1 | (D) is not eligible for the Enterprise Zone | ||||||
2 | Investment Credit provided
by subsection (f) of this | ||||||
3 | Section. | ||||||
4 | (3) The basis of qualified property shall be the basis | ||||||
5 | used to compute
the depreciation deduction for federal | ||||||
6 | income tax purposes. | ||||||
7 | (4) If the basis of the property for federal income tax | ||||||
8 | depreciation
purposes is increased after it has been placed | ||||||
9 | in service in a federally
designated Foreign Trade Zone or | ||||||
10 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
11 | such increase shall be deemed property placed in service on
| ||||||
12 | the date of such increase in basis. | ||||||
13 | (5) The term "placed in service" shall have the same | ||||||
14 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
15 | (6) If during any taxable year ending on or before | ||||||
16 | December 31, 1996,
any property ceases to be qualified
| ||||||
17 | property in the hands of the taxpayer within 48 months | ||||||
18 | after being placed
in service, or the situs of any | ||||||
19 | qualified property is moved outside
Illinois within 48 | ||||||
20 | months after being placed in service, the tax imposed
under | ||||||
21 | subsections (a) and (b) of this Section for such taxable | ||||||
22 | year shall
be increased. Such increase shall be determined | ||||||
23 | by (i) recomputing the
investment credit which would have | ||||||
24 | been allowed for the year in which
credit for such property | ||||||
25 | was originally allowed by eliminating such
property from | ||||||
26 | such computation, and (ii) subtracting such recomputed |
| |||||||
| |||||||
1 | credit
from the amount of credit previously allowed. For | ||||||
2 | the purposes of this
paragraph (6), a reduction of the | ||||||
3 | basis of qualified property resulting
from a | ||||||
4 | redetermination of the purchase price shall be deemed a | ||||||
5 | disposition
of qualified property to the extent of such | ||||||
6 | reduction. | ||||||
7 | (7) Beginning with tax years ending after December 31, | ||||||
8 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
9 | subsection (h) and thereby is
granted a tax abatement and | ||||||
10 | the taxpayer relocates its entire facility in
violation of | ||||||
11 | the explicit terms and length of the contract under Section
| ||||||
12 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
13 | subsections
(a) and (b) of this Section shall be increased | ||||||
14 | for the taxable year
in which the taxpayer relocated its | ||||||
15 | facility by an amount equal to the
amount of credit | ||||||
16 | received by the taxpayer under this subsection (h). | ||||||
17 | (h-5) High Impact Business construction constructions jobs | ||||||
18 | credit. For taxable years beginning on or after January 1, | ||||||
19 | 2021, there shall also be allowed a High Impact Business | ||||||
20 | construction jobs credit against the tax imposed under | ||||||
21 | subsections (a) and (b) of this Section as provided in | ||||||
22 | subsections (i) and (j) of Section 5.5 of the Illinois | ||||||
23 | Enterprise Zone Act. | ||||||
24 | The credit or credits may not reduce the taxpayer's | ||||||
25 | liability to less than zero. If the amount of the credit or | ||||||
26 | credits exceeds the taxpayer's liability, the excess may be |
| |||||||
| |||||||
1 | carried forward and applied against the taxpayer's liability in | ||||||
2 | succeeding calendar years in the manner provided under | ||||||
3 | paragraph (4) of Section 211 of this Act. The credit or credits | ||||||
4 | shall be applied to the earliest year for which there is a tax | ||||||
5 | liability. If there are credits from more than one taxable year | ||||||
6 | that are available to offset a liability, the earlier credit | ||||||
7 | shall be applied first. | ||||||
8 | For partners, shareholders of Subchapter S corporations, | ||||||
9 | and owners of limited liability companies, if the liability | ||||||
10 | company is treated as a partnership for the purposes of federal | ||||||
11 | and State income taxation, there shall be allowed a credit | ||||||
12 | under this Section to be determined in accordance with the | ||||||
13 | determination of income and distributive share of income under | ||||||
14 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
15 | Code. | ||||||
16 | The total aggregate amount of credits awarded under the | ||||||
17 | Blue Collar Jobs Act (Article 20 of Public Act 101-9 this | ||||||
18 | amendatory Act of the 101st General Assembly ) shall not exceed | ||||||
19 | $20,000,000 in any State fiscal year . | ||||||
20 | This subsection (h-5) is exempt from the provisions of | ||||||
21 | Section 250. | ||||||
22 | (i) Credit for Personal Property Tax Replacement Income | ||||||
23 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
24 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
25 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
26 | (d) of this Section. This credit shall be computed by |
| |||||||
| |||||||
1 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
2 | Section by a fraction, the numerator
of which is base income | ||||||
3 | allocable to Illinois and the denominator of which is
Illinois | ||||||
4 | base income, and further multiplying the product by the tax | ||||||
5 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
6 | Any credit earned on or after December 31, 1986 under
this | ||||||
7 | subsection which is unused in the year
the credit is computed | ||||||
8 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
9 | and (b) for that year (whether it exceeds the original
| ||||||
10 | liability or the liability as later amended) may be carried | ||||||
11 | forward and
applied to the tax liability imposed by subsections | ||||||
12 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
13 | year, provided that no credit may
be carried forward to any | ||||||
14 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
15 | applied first to the earliest year for which there is a | ||||||
16 | liability. If
there is a credit under this subsection from more | ||||||
17 | than one tax year that is
available to offset a liability the | ||||||
18 | earliest credit arising under this
subsection shall be applied | ||||||
19 | first. | ||||||
20 | If, during any taxable year ending on or after December 31, | ||||||
21 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
22 | Section for which a taxpayer
has claimed a credit under this | ||||||
23 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
24 | shall also be reduced. Such reduction shall be
determined by | ||||||
25 | recomputing the credit to take into account the reduced tax
| ||||||
26 | imposed by subsections (c) and (d). If any portion of the
|
| |||||||
| |||||||
1 | reduced amount of credit has been carried to a different | ||||||
2 | taxable year, an
amended return shall be filed for such taxable | ||||||
3 | year to reduce the amount of
credit claimed. | ||||||
4 | (j) Training expense credit. Beginning with tax years | ||||||
5 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
6 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
7 | imposed by subsections (a) and (b) under this Section
for all | ||||||
8 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
9 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
10 | of Illinois by a taxpayer, for educational or vocational | ||||||
11 | training in
semi-technical or technical fields or semi-skilled | ||||||
12 | or skilled fields, which
were deducted from gross income in the | ||||||
13 | computation of taxable income. The
credit against the tax | ||||||
14 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
15 | training expenses. For partners, shareholders of subchapter S
| ||||||
16 | corporations, and owners of limited liability companies, if the | ||||||
17 | liability
company is treated as a partnership for purposes of | ||||||
18 | federal and State income
taxation, there shall be allowed a | ||||||
19 | credit under this subsection (j) to be
determined in accordance | ||||||
20 | with the determination of income and distributive
share of | ||||||
21 | income under Sections 702 and 704 and subchapter S of the | ||||||
22 | Internal
Revenue Code. | ||||||
23 | Any credit allowed under this subsection which is unused in | ||||||
24 | the year
the credit is earned may be carried forward to each of | ||||||
25 | the 5 taxable
years following the year for which the credit is | ||||||
26 | first computed until it is
used. This credit shall be applied |
| |||||||
| |||||||
1 | first to the earliest year for which
there is a liability. If | ||||||
2 | there is a credit under this subsection from more
than one tax | ||||||
3 | year that is available to offset a liability , the earliest
| ||||||
4 | credit arising under this subsection shall be applied first. No | ||||||
5 | carryforward
credit may be claimed in any tax year ending on or | ||||||
6 | after
December 31, 2003. | ||||||
7 | (k) Research and development credit. For tax years ending | ||||||
8 | after July 1, 1990 and prior to
December 31, 2003, and | ||||||
9 | beginning again for tax years ending on or after December 31, | ||||||
10 | 2004, and ending prior to January 1, 2027, a taxpayer shall be
| ||||||
11 | allowed a credit against the tax imposed by subsections (a) and | ||||||
12 | (b) of this
Section for increasing research activities in this | ||||||
13 | State. The credit
allowed against the tax imposed by | ||||||
14 | subsections (a) and (b) shall be equal
to 6 1/2% of the | ||||||
15 | qualifying expenditures for increasing research activities
in | ||||||
16 | this State. For partners, shareholders of subchapter S | ||||||
17 | corporations, and
owners of limited liability companies, if the | ||||||
18 | liability company is treated as a
partnership for purposes of | ||||||
19 | federal and State income taxation, there shall be
allowed a | ||||||
20 | credit under this subsection to be determined in accordance | ||||||
21 | with the
determination of income and distributive share of | ||||||
22 | income under Sections 702 and
704 and subchapter S of the | ||||||
23 | Internal Revenue Code. | ||||||
24 | For purposes of this subsection, "qualifying expenditures" | ||||||
25 | means the
qualifying expenditures as defined for the federal | ||||||
26 | credit for increasing
research activities which would be |
| |||||||
| |||||||
1 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
2 | which are conducted in this State, "qualifying
expenditures for | ||||||
3 | increasing research activities in this State" means the
excess | ||||||
4 | of qualifying expenditures for the taxable year in which | ||||||
5 | incurred
over qualifying expenditures for the base period, | ||||||
6 | "qualifying expenditures
for the base period" means the average | ||||||
7 | of the qualifying expenditures for
each year in the base | ||||||
8 | period, and "base period" means the 3 taxable years
immediately | ||||||
9 | preceding the taxable year for which the determination is
being | ||||||
10 | made. | ||||||
11 | Any credit in excess of the tax liability for the taxable | ||||||
12 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
13 | unused credit shown on its final completed return carried over | ||||||
14 | as a credit
against the tax liability for the following 5 | ||||||
15 | taxable years or until it has
been fully used, whichever occurs | ||||||
16 | first; provided that no credit earned in a tax year ending | ||||||
17 | prior to December 31, 2003 may be carried forward to any year | ||||||
18 | ending on or after December 31, 2003. | ||||||
19 | If an unused credit is carried forward to a given year from | ||||||
20 | 2 or more
earlier years, that credit arising in the earliest | ||||||
21 | year will be applied
first against the tax liability for the | ||||||
22 | given year. If a tax liability for
the given year still | ||||||
23 | remains, the credit from the next earliest year will
then be | ||||||
24 | applied, and so on, until all credits have been used or no tax
| ||||||
25 | liability for the given year remains. Any remaining unused | ||||||
26 | credit or
credits then will be carried forward to the next |
| |||||||
| |||||||
1 | following year in which a
tax liability is incurred, except | ||||||
2 | that no credit can be carried forward to
a year which is more | ||||||
3 | than 5 years after the year in which the expense for
which the | ||||||
4 | credit is given was incurred. | ||||||
5 | No inference shall be drawn from Public Act 91-644 this | ||||||
6 | amendatory Act of the 91st General
Assembly in construing this | ||||||
7 | Section for taxable years beginning before January
1, 1999. | ||||||
8 | It is the intent of the General Assembly that the research | ||||||
9 | and development credit under this subsection (k) shall apply | ||||||
10 | continuously for all tax years ending on or after December 31, | ||||||
11 | 2004 and ending prior to January 1, 2027, including, but not | ||||||
12 | limited to, the period beginning on January 1, 2016 and ending | ||||||
13 | on July 6, 2017 ( the effective date of Public Act 100-22) this | ||||||
14 | amendatory Act of the 100th General Assembly . All actions taken | ||||||
15 | in reliance on the continuation of the credit under this | ||||||
16 | subsection (k) by any taxpayer are hereby validated. | ||||||
17 | (l) Environmental Remediation Tax Credit. | ||||||
18 | (i) For tax years ending after December 31, 1997 and on | ||||||
19 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
20 | credit against the tax
imposed by subsections (a) and (b) | ||||||
21 | of this Section for certain amounts paid
for unreimbursed | ||||||
22 | eligible remediation costs, as specified in this | ||||||
23 | subsection.
For purposes of this Section, "unreimbursed | ||||||
24 | eligible remediation costs" means
costs approved by the | ||||||
25 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
26 | Section 58.14 of the Environmental Protection Act that were |
| |||||||
| |||||||
1 | paid in performing
environmental remediation at a site for | ||||||
2 | which a No Further Remediation Letter
was issued by the | ||||||
3 | Agency and recorded under Section 58.10 of the | ||||||
4 | Environmental
Protection Act. The credit must be claimed | ||||||
5 | for the taxable year in which
Agency approval of the | ||||||
6 | eligible remediation costs is granted. The credit is
not | ||||||
7 | available to any taxpayer if the taxpayer or any related | ||||||
8 | party caused or
contributed to, in any material respect, a | ||||||
9 | release of regulated substances on,
in, or under the site | ||||||
10 | that was identified and addressed by the remedial
action | ||||||
11 | pursuant to the Site Remediation Program of the | ||||||
12 | Environmental Protection
Act. After the Pollution Control | ||||||
13 | Board rules are adopted pursuant to the
Illinois | ||||||
14 | Administrative Procedure Act for the administration and | ||||||
15 | enforcement of
Section 58.9 of the Environmental | ||||||
16 | Protection Act, determinations as to credit
availability | ||||||
17 | for purposes of this Section shall be made consistent with | ||||||
18 | those
rules. For purposes of this Section, "taxpayer" | ||||||
19 | includes a person whose tax
attributes the taxpayer has | ||||||
20 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
21 | and "related party" includes the persons disallowed a | ||||||
22 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
23 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
24 | a related taxpayer, as well as any of its
partners. The | ||||||
25 | credit allowed against the tax imposed by subsections (a) | ||||||
26 | and
(b) shall be equal to 25% of the unreimbursed eligible |
| |||||||
| |||||||
1 | remediation costs in
excess of $100,000 per site, except | ||||||
2 | that the $100,000 threshold shall not apply
to any site | ||||||
3 | contained in an enterprise zone as determined by the | ||||||
4 | Department of
Commerce and Community Affairs (now | ||||||
5 | Department of Commerce and Economic Opportunity). The | ||||||
6 | total credit allowed shall not exceed
$40,000 per year with | ||||||
7 | a maximum total of $150,000 per site. For partners and
| ||||||
8 | shareholders of subchapter S corporations, there shall be | ||||||
9 | allowed a credit
under this subsection to be determined in | ||||||
10 | accordance with the determination of
income and | ||||||
11 | distributive share of income under Sections 702 and 704 and
| ||||||
12 | subchapter S of the Internal Revenue Code. | ||||||
13 | (ii) A credit allowed under this subsection that is | ||||||
14 | unused in the year
the credit is earned may be carried | ||||||
15 | forward to each of the 5 taxable years
following the year | ||||||
16 | for which the credit is first earned until it is used.
The | ||||||
17 | term "unused credit" does not include any amounts of | ||||||
18 | unreimbursed eligible
remediation costs in excess of the | ||||||
19 | maximum credit per site authorized under
paragraph (i). | ||||||
20 | This credit shall be applied first to the earliest year
for | ||||||
21 | which there is a liability. If there is a credit under this | ||||||
22 | subsection
from more than one tax year that is available to | ||||||
23 | offset a liability, the
earliest credit arising under this | ||||||
24 | subsection shall be applied first. A
credit allowed under | ||||||
25 | this subsection may be sold to a buyer as part of a sale
of | ||||||
26 | all or part of the remediation site for which the credit |
| |||||||
| |||||||
1 | was granted. The
purchaser of a remediation site and the | ||||||
2 | tax credit shall succeed to the unused
credit and remaining | ||||||
3 | carry-forward period of the seller. To perfect the
| ||||||
4 | transfer, the assignor shall record the transfer in the | ||||||
5 | chain of title for the
site and provide written notice to | ||||||
6 | the Director of the Illinois Department of
Revenue of the | ||||||
7 | assignor's intent to sell the remediation site and the | ||||||
8 | amount of
the tax credit to be transferred as a portion of | ||||||
9 | the sale. In no event may a
credit be transferred to any | ||||||
10 | taxpayer if the taxpayer or a related party would
not be | ||||||
11 | eligible under the provisions of subsection (i). | ||||||
12 | (iii) For purposes of this Section, the term "site" | ||||||
13 | shall have the same
meaning as under Section 58.2 of the | ||||||
14 | Environmental Protection Act. | ||||||
15 | (m) Education expense credit. Beginning with tax years | ||||||
16 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
17 | of one or more qualifying pupils shall be allowed a credit
| ||||||
18 | against the tax imposed by subsections (a) and (b) of this | ||||||
19 | Section for
qualified education expenses incurred on behalf of | ||||||
20 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
21 | qualified education expenses, but in no
event may the total | ||||||
22 | credit under this subsection claimed by a
family that is the
| ||||||
23 | custodian of qualifying pupils exceed (i) $500 for tax years | ||||||
24 | ending prior to December 31, 2017, and (ii) $750 for tax years | ||||||
25 | ending on or after December 31, 2017 and ending prior to | ||||||
26 | December 31, 2020, and (iii) $2,500 for tax years ending on or |
| |||||||
| |||||||
1 | after December 31, 2020 . In no event shall a credit under
this | ||||||
2 | subsection reduce the taxpayer's liability under this Act to | ||||||
3 | less than
zero. Notwithstanding any other provision of law, for | ||||||
4 | taxable years beginning on or after January 1, 2017, no | ||||||
5 | taxpayer may claim a credit under this subsection (m) if the | ||||||
6 | taxpayer's adjusted gross income for the taxable year exceeds | ||||||
7 | (i) $500,000, in the case of spouses filing a joint federal tax | ||||||
8 | return or (ii) $250,000, in the case of all other taxpayers. | ||||||
9 | This subsection is exempt from the provisions of Section 250 of | ||||||
10 | this
Act. | ||||||
11 | For purposes of this subsection: | ||||||
12 | "Qualifying pupils" means individuals who (i) are | ||||||
13 | residents of the State of
Illinois, (ii) are under the age of | ||||||
14 | 21 at the close of the school year for
which a credit is | ||||||
15 | sought, and (iii) during the school year for which a credit
is | ||||||
16 | sought were full-time pupils enrolled in a kindergarten through | ||||||
17 | twelfth
grade education program at any school, as defined in | ||||||
18 | this subsection. | ||||||
19 | "Qualified education expense" means the amount incurred
on | ||||||
20 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
21 | book fees, and
lab fees at the school in which the pupil is | ||||||
22 | enrolled during the regular school
year. | ||||||
23 | "School" means any public or nonpublic elementary or | ||||||
24 | secondary school in
Illinois that is in compliance with Title | ||||||
25 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
26 | satisfies the requirements of Section 26-1 of the
School Code, |
| |||||||
| |||||||
1 | except that nothing shall be construed to require a child to
| ||||||
2 | attend any particular public or nonpublic school to qualify for | ||||||
3 | the credit
under this Section. | ||||||
4 | "Custodian" means, with respect to qualifying pupils, an | ||||||
5 | Illinois resident
who is a parent, the parents, a legal | ||||||
6 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
7 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
8 | credit.
| ||||||
9 | (i) For tax years ending on or after December 31, 2006, | ||||||
10 | a taxpayer shall be allowed a credit against the tax | ||||||
11 | imposed by subsections (a) and (b) of this Section for | ||||||
12 | certain amounts paid for unreimbursed eligible remediation | ||||||
13 | costs, as specified in this subsection. For purposes of | ||||||
14 | this Section, "unreimbursed eligible remediation costs" | ||||||
15 | means costs approved by the Illinois Environmental | ||||||
16 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
17 | Environmental Protection Act that were paid in performing | ||||||
18 | environmental remediation at a site within a River Edge | ||||||
19 | Redevelopment Zone for which a No Further Remediation | ||||||
20 | Letter was issued by the Agency and recorded under Section | ||||||
21 | 58.10 of the Environmental Protection Act. The credit must | ||||||
22 | be claimed for the taxable year in which Agency approval of | ||||||
23 | the eligible remediation costs is granted. The credit is | ||||||
24 | not available to any taxpayer if the taxpayer or any | ||||||
25 | related party caused or contributed to, in any material | ||||||
26 | respect, a release of regulated substances on, in, or under |
| |||||||
| |||||||
1 | the site that was identified and addressed by the remedial | ||||||
2 | action pursuant to the Site Remediation Program of the | ||||||
3 | Environmental Protection Act. Determinations as to credit | ||||||
4 | availability for purposes of this Section shall be made | ||||||
5 | consistent with rules adopted by the Pollution Control | ||||||
6 | Board pursuant to the Illinois Administrative Procedure | ||||||
7 | Act for the administration and enforcement of Section 58.9 | ||||||
8 | of the Environmental Protection Act. For purposes of this | ||||||
9 | Section, "taxpayer" includes a person whose tax attributes | ||||||
10 | the taxpayer has succeeded to under Section 381 of the | ||||||
11 | Internal Revenue Code and "related party" includes the | ||||||
12 | persons disallowed a deduction for losses by paragraphs | ||||||
13 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
14 | Code by virtue of being a related taxpayer, as well as any | ||||||
15 | of its partners. The credit allowed against the tax imposed | ||||||
16 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
17 | unreimbursed eligible remediation costs in excess of | ||||||
18 | $100,000 per site. | ||||||
19 | (ii) A credit allowed under this subsection that is | ||||||
20 | unused in the year the credit is earned may be carried | ||||||
21 | forward to each of the 5 taxable years following the year | ||||||
22 | for which the credit is first earned until it is used. This | ||||||
23 | credit shall be applied first to the earliest year for | ||||||
24 | which there is a liability. If there is a credit under this | ||||||
25 | subsection from more than one tax year that is available to | ||||||
26 | offset a liability, the earliest credit arising under this |
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1 | subsection shall be applied first. A credit allowed under | ||||||
2 | this subsection may be sold to a buyer as part of a sale of | ||||||
3 | all or part of the remediation site for which the credit | ||||||
4 | was granted. The purchaser of a remediation site and the | ||||||
5 | tax credit shall succeed to the unused credit and remaining | ||||||
6 | carry-forward period of the seller. To perfect the | ||||||
7 | transfer, the assignor shall record the transfer in the | ||||||
8 | chain of title for the site and provide written notice to | ||||||
9 | the Director of the Illinois Department of Revenue of the | ||||||
10 | assignor's intent to sell the remediation site and the | ||||||
11 | amount of the tax credit to be transferred as a portion of | ||||||
12 | the sale. In no event may a credit be transferred to any | ||||||
13 | taxpayer if the taxpayer or a related party would not be | ||||||
14 | eligible under the provisions of subsection (i). | ||||||
15 | (iii) For purposes of this Section, the term "site" | ||||||
16 | shall have the same meaning as under Section 58.2 of the | ||||||
17 | Environmental Protection Act. | ||||||
18 | (o) For each of taxable years during the Compassionate Use | ||||||
19 | of Medical Cannabis Program, a surcharge is imposed on all | ||||||
20 | taxpayers on income arising from the sale or exchange of | ||||||
21 | capital assets, depreciable business property, real property | ||||||
22 | used in the trade or business, and Section 197 intangibles of | ||||||
23 | an organization registrant under the Compassionate Use of | ||||||
24 | Medical Cannabis Program Act. The amount of the surcharge is | ||||||
25 | equal to the amount of federal income tax liability for the | ||||||
26 | taxable year attributable to those sales and exchanges. The |
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1 | surcharge imposed does not apply if: | ||||||
2 | (1) the medical cannabis cultivation center | ||||||
3 | registration, medical cannabis dispensary registration, or | ||||||
4 | the property of a registration is transferred as a result | ||||||
5 | of any of the following: | ||||||
6 | (A) bankruptcy, a receivership, or a debt | ||||||
7 | adjustment initiated by or against the initial | ||||||
8 | registration or the substantial owners of the initial | ||||||
9 | registration; | ||||||
10 | (B) cancellation, revocation, or termination of | ||||||
11 | any registration by the Illinois Department of Public | ||||||
12 | Health; | ||||||
13 | (C) a determination by the Illinois Department of | ||||||
14 | Public Health that transfer of the registration is in | ||||||
15 | the best interests of Illinois qualifying patients as | ||||||
16 | defined by the Compassionate Use of Medical Cannabis | ||||||
17 | Program Act; | ||||||
18 | (D) the death of an owner of the equity interest in | ||||||
19 | a registrant; | ||||||
20 | (E) the acquisition of a controlling interest in | ||||||
21 | the stock or substantially all of the assets of a | ||||||
22 | publicly traded company; | ||||||
23 | (F) a transfer by a parent company to a wholly | ||||||
24 | owned subsidiary; or | ||||||
25 | (G) the transfer or sale to or by one person to | ||||||
26 | another person where both persons were initial owners |
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1 | of the registration when the registration was issued; | ||||||
2 | or | ||||||
3 | (2) the cannabis cultivation center registration, | ||||||
4 | medical cannabis dispensary registration, or the | ||||||
5 | controlling interest in a registrant's property is | ||||||
6 | transferred in a transaction to lineal descendants in which | ||||||
7 | no gain or loss is recognized or as a result of a | ||||||
8 | transaction in accordance with Section 351 of the Internal | ||||||
9 | Revenue Code in which no gain or loss is recognized. | ||||||
10 | (Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for | ||||||
11 | effective date; 101-9, eff. 6-5-19; 101-31, eff. 6-28-19; | ||||||
12 | 101-207, eff. 8-2-19; 101-363, eff. 8-9-19; revised 9-17-19.)
| ||||||
13 | (35 ILCS 5/208) (from Ch. 120, par. 2-208)
| ||||||
14 | (Text of Section before amendment by P.A. 101-8 )
| ||||||
15 | Sec. 208. Tax credit for residential real property taxes. | ||||||
16 | Except as otherwise provided in this Section, beginning | ||||||
17 | Beginning with tax years ending on or after December 31, 1991,
| ||||||
18 | every individual taxpayer shall be entitled to a tax credit | ||||||
19 | equal
to 5% of real property taxes paid by such taxpayer during | ||||||
20 | the
taxable year on the principal residence of the taxpayer. | ||||||
21 | Notwithstanding any other provision of law, for taxable years | ||||||
22 | ending on or after December 31, 2020, if the school district in | ||||||
23 | which the principal residence of the taxpayer is located has | ||||||
24 | implemented attendance restrictions as a result of the COVID-19 | ||||||
25 | pandemic during any part of the taxable year, then, for that |
| |||||||
| |||||||
1 | taxable year only, the tax credit under this Section shall be | ||||||
2 | equal to 25% of real property taxes paid by such taxpayer | ||||||
3 | during the taxable year on the principal residence of the | ||||||
4 | taxpayer. In the
case of multi-unit or multi-use structures and | ||||||
5 | farm dwellings,
the taxes on the taxpayer's principal residence | ||||||
6 | shall be that
portion of the total taxes which is attributable | ||||||
7 | to such principal
residence. Notwithstanding any other | ||||||
8 | provision of law, for taxable years beginning on or after | ||||||
9 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
10 | Section if the taxpayer's adjusted gross income for the taxable | ||||||
11 | year exceeds (i) $500,000, in the case of spouses filing a | ||||||
12 | joint federal tax return, or (ii) $250,000, in the case of all | ||||||
13 | other taxpayers.
| ||||||
14 | (Source: P.A. 100-22, eff. 7-6-17.)
| ||||||
15 | (Text of Section after amendment by P.A. 101-8 )
| ||||||
16 | Sec. 208. Tax credit for residential real property taxes. | ||||||
17 | Except as otherwise provided in this Section, for For tax years | ||||||
18 | ending on or after December 31, 1991 and ending prior to | ||||||
19 | December 31, 2021,
every individual taxpayer shall be entitled | ||||||
20 | to a tax credit equal
to 5% of real property taxes paid by such | ||||||
21 | taxpayer during the
taxable year on the principal residence of | ||||||
22 | the taxpayer. Except as otherwise provided in this Section, for | ||||||
23 | For tax years ending on or after December 31, 2021, every | ||||||
24 | individual taxpayer shall be entitled to a tax credit equal
to | ||||||
25 | 6% of real property taxes paid by such taxpayer during the
|
| |||||||
| |||||||
1 | taxable year on the principal residence of the taxpayer. | ||||||
2 | Notwithstanding any other provision of law, for taxable years | ||||||
3 | ending on or after December 31, 2020, if the school district in | ||||||
4 | which the principal residence of the taxpayer is located has | ||||||
5 | implemented attendance restrictions as a result of the COVID-19 | ||||||
6 | pandemic during any part of the taxable year, then, for that | ||||||
7 | taxable year only, the tax credit under this Section shall be | ||||||
8 | equal to 25% of real property taxes paid by such taxpayer | ||||||
9 | during the taxable year on the principal residence of the | ||||||
10 | taxpayer. In the
case of multi-unit or multi-use structures and | ||||||
11 | farm dwellings,
the taxes on the taxpayer's principal residence | ||||||
12 | shall be that
portion of the total taxes which is attributable | ||||||
13 | to such principal
residence. Notwithstanding any other | ||||||
14 | provision of law, for taxable years beginning on or after | ||||||
15 | January 1, 2017, no taxpayer may claim a credit under this | ||||||
16 | Section if the taxpayer's adjusted gross income for the taxable | ||||||
17 | year exceeds (i) $500,000, in the case of spouses filing a | ||||||
18 | joint federal tax return, or (ii) $250,000, in the case of all | ||||||
19 | other taxpayers. This Section is exempt from the provisions of | ||||||
20 | Section 250.
| ||||||
21 | (Source: P.A. 100-22, eff. 7-6-17; 101-8, see Section 99 for | ||||||
22 | effective date.)
| ||||||
23 | Section 95. No acceleration or delay. Where this Act makes | ||||||
24 | changes in a statute that is represented in this Act by text | ||||||
25 | that is not yet or no longer in effect (for example, a Section |
| |||||||
| |||||||
1 | represented by multiple versions), the use of that text does | ||||||
2 | not accelerate or delay the taking effect of (i) the changes | ||||||
3 | made by this Act or (ii) provisions derived from any other | ||||||
4 | Public Act.
| ||||||
5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.
|