93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2890


 
Introduced 2/6/2004, by Antonio Munoz
 
SYNOPSIS AS INTRODUCED:
 		














35 ILCS 5/207
  from Ch. 120, par. 2-207







    Amends the Illinois Income Tax Act.  Makes a technical change in a Section concerning net losses.
















LRB093 17810 SJM 43491 b

















 


 


A BILL FOR









 











SB2890

LRB093 17810 SJM 43491 b






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    AN ACT concerning taxes.

 
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    Be it enacted by the People of the State of Illinois,
 
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represented in the General Assembly:


 
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    Section 5. The Illinois Income Tax Act is amended  by 
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changing Section 207 as follows:
 



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    (35 ILCS 5/207)  (from Ch. 120, par. 2-207)



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    Sec. 207. Net losses
Losses. 

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    (a) If after applying all of the modifications
provided for 
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in paragraph (2) of Section 203(b), paragraph (2) of Section

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203(c) and paragraph (2) of Section 203(d) and the allocation 
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and
apportionment provisions of Article 3 of this
Act, the 
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taxpayer's net income results in a loss;


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        (1) for any taxable year ending prior to December 31, 
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    1999, such loss
shall be allowed
as a carryover or 
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    carryback deduction in the manner allowed under Section
172 
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    of the Internal Revenue Code;


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        (2) for any taxable year ending on or after December 
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    31, 1999 and prior
to December 31, 2003, such loss
shall be 
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    allowed as a carryback to each of the 2 taxable years 
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    preceding the
taxable year of such loss and shall be a net 
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    operating carryover to each of the
20 taxable years 
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    following the taxable year of such loss; and


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        (3) for any taxable year ending on or after December 
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    31, 2003, such loss
shall be allowed as a net operating 
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    carryover to each of the 12 taxable years
following the 
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    taxable year of such loss.

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    (a-5) Election to relinquish carryback and order of 
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application of
losses.


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            (A) For losses incurred in tax years ending prior 
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        to December 31,
2003, the taxpayer may elect to 
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        relinquish the entire carryback period
with respect to 
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        such loss.  Such election shall be made in the form and 
 


 






SB2890
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LRB093 17810 SJM 43491 b




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        manner
prescribed by the Department and shall be made 
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        by the due date (including
extensions of time) for 
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        filing the taxpayer's return for the taxable year in

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        which such loss is incurred, and such election, once 
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        made, shall be
irrevocable.


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            (B) The entire amount of such loss shall be carried 
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        to the earliest
taxable year to which such loss may be 
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        carried.  The amount of such loss which
shall be carried 
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        to each of the other taxable years shall be the excess, 
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        if
any, of the amount of such loss over the sum of the 
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        deductions for carryback or
carryover of such loss 
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        allowable for each of the prior taxable years to which

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        such loss may be carried.

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    (b) Any loss determined under subsection (a) of this 
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Section must be carried
back or carried forward in the same 
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manner for purposes of subsections (a)
and (b) of Section 201 
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of this Act as for purposes of subsections (c) and
(d) of 
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Section 201 of this Act.

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(Source: P.A. 93-29, eff. 6-20-03.)