96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4132


 
Introduced 2/27/2009, by Rep. Darlene J. Senger
 
SYNOPSIS AS INTRODUCED:
 		








  



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







    Amends the Illinois Income Tax Act. Extends the carryback and carryover periods for net losses by an additional 5 years.
















LRB096 09873 RCE 20036 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB4132

LRB096 09873 RCE 20036 b






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    AN ACT concerning revenue.

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


 
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    Section 5. The Illinois Income Tax Act is amended  by 
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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. 

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    (a) If after applying all of the (i) modifications
provided 
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for in paragraph (2) of Section 203(b), paragraph (2) of 
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Section
203(c) and paragraph (2) of Section 203(d) and (ii) the 
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allocation and
apportionment provisions of Article 3 of this

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Act and subsection (c) of this Section, the taxpayer's net 
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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 7 2 taxable years 
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    preceding the
taxable year of such loss and shall be a net 
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    operating loss carryover to each of the
25 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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    loss carryover to each of the 17 12 taxable years
following 
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    the 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 
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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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    (c) Notwithstanding any other provision of this Act, for 
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each taxable year ending on or after December 31, 2008, for 
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purposes of computing the loss for the taxable year under 
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subsection (a) of this Section and the deduction taken into 
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account for the taxable year for a net operating loss carryover 
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under paragraphs (1), (2), and (3) of subsection (a) of this 
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Section, the loss and net operating loss carryover shall be 
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reduced in an amount equal to the reduction to the net 
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operating loss and net operating loss carryover to the taxable 
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year, respectively, required under Section 108(b)(2)(A) of the 
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Internal Revenue Code, multiplied by a fraction, the numerator 
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of which is the amount of discharge of indebtedness income that 
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is excluded from gross income for the taxable year (but only if 
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the taxable year ends on or after December 31, 2008) under 
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Section 108(a) of the Internal Revenue Code and that would have 
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been allocated and apportioned to this State under Article 3 of 
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this Act but for that exclusion, and the denominator of which 
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is the total amount of discharge of indebtedness income 
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excluded from gross income under Section 108(a) of the Internal 
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Revenue Code for the taxable year. The reduction required under 
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this subsection (c) shall be made after the determination of 
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Illinois net income for the taxable year in which the 
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indebtedness is discharged.

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(Source: P.A. 95-233, eff. 8-16-07.)