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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,
| |||||||||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||||||||
4 | Section 3. The State Mandates Act is amended by changing | |||||||||||||||||||||||||||
5 | Section 8.28 as follows: | |||||||||||||||||||||||||||
6 | (30 ILCS 805/8.28)
| |||||||||||||||||||||||||||
7 | Sec. 8.28. Exempt mandate. | |||||||||||||||||||||||||||
8 | (a) Notwithstanding Sections 6 and 8 of this
Act, no | |||||||||||||||||||||||||||
9 | reimbursement by the State is required for the implementation | |||||||||||||||||||||||||||
10 | of
any mandate created by Public Act 93-654, 93-677, 93-679, | |||||||||||||||||||||||||||
11 | 93-689, 93-734, 93-753, 93-910, 93-917, 93-1036, 93-1038, | |||||||||||||||||||||||||||
12 | 93-1079, or 93-1090.
| |||||||||||||||||||||||||||
13 | (b) Notwithstanding Sections 6 and 8 of this
Act, no | |||||||||||||||||||||||||||
14 | reimbursement by the State is required for the implementation | |||||||||||||||||||||||||||
15 | of
any mandate created by the standard homestead exemption | |||||||||||||||||||||||||||
16 | under Section 15-167 of the Property Tax Code, the Senior | |||||||||||||||||||||||||||
17 | Citizens Assessment Freeze Homestead Exemption under Section | |||||||||||||||||||||||||||
18 | 15-172 of the Property Tax Code, the General Homestead | |||||||||||||||||||||||||||
19 | Exemption under Section 15-175 of the Property Tax Code, the | |||||||||||||||||||||||||||
20 | alternative General Homestead Exemption
under
Section 15-176 | |||||||||||||||||||||||||||
21 | of the Property Tax Code, the Homestead Improvements Exemption | |||||||||||||||||||||||||||
22 | under Section 15-180 of the Property Tax Code, and by Public | |||||||||||||||||||||||||||
23 | Act 93-715. |
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| |||||||
1 | (Source: P.A. 95-331, eff. 8-21-07.) | ||||||
2 | Section 5. The State Finance Act is amended by adding | ||||||
3 | Sections 5.719 and 6z-80 as follows: | ||||||
4 | (30 ILCS 105/5.719 new)
| ||||||
5 | Sec. 5.719. The Homestead Property Tax Replacement Fund. | ||||||
6 | (30 ILCS 105/6z-80 new)
| ||||||
7 | Sec. 6z-80. The Homestead Property Tax Replacement Fund. | ||||||
8 | (a) The Homestead Property Tax Replacement Fund is created | ||||||
9 | as a special fund in the State treasury. From appropriations to | ||||||
10 | the Department of Revenue from the Fund, the Department shall | ||||||
11 | make grants of the amounts certified under subsection (b) of | ||||||
12 | this Section to taxing districts in the State for the purpose | ||||||
13 | of reimbursing the taxing districts for revenue lost due to the | ||||||
14 | implementation of the standard homestead exemption under | ||||||
15 | Section 15-167 of the Property Tax Code. | ||||||
16 | (b) No later than February 25th of each year beginning in | ||||||
17 | 2011, for each taxing district in the State, the Department of | ||||||
18 | Revenue shall certify an amount that is the difference between | ||||||
19 | (i) the amount of property taxes levied by the district in the | ||||||
20 | previous taxable year and (ii) the amount that the district | ||||||
21 | would have levied if not for the implementation of the standard | ||||||
22 | homestead exemption under Section 15-167 of the Property Tax | ||||||
23 | Code and the repeal of the homestead exemptions under Section |
| |||||||
| |||||||
1 | 20 of this amendatory Act of the 96th General Assembly. | ||||||
2 | (c) Moneys received for the purposes of this Section, | ||||||
3 | including the deposit of income tax proceeds under subsection | ||||||
4 | (f) of Section 901 of the Illinois Income Tax Act and all other | ||||||
5 | gifts, grants, and awards from any public or private entity, | ||||||
6 | must be deposited into the Fund. Any interest earnings that are | ||||||
7 | attributable to moneys in the Fund must be deposited into the | ||||||
8 | Fund. | ||||||
9 |
| ||||||
10 | Section 10. The Illinois Income Tax Act is amended by | ||||||
11 | changing Sections 201 and 901 and by adding Section 202.5 as | ||||||
12 | follows:
| ||||||
13 | (35 ILCS 5/201) (from Ch. 120, par. 2-201)
| ||||||
14 | Sec. 201. Tax Imposed.
| ||||||
15 | (a) In general. A tax measured by net income is hereby | ||||||
16 | imposed on every
individual, corporation, trust and estate for | ||||||
17 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
18 | of earning or receiving income in or
as a resident of this | ||||||
19 | State. Such tax shall be in addition to all other
occupation or | ||||||
20 | privilege taxes imposed by this State or by any municipal
| ||||||
21 | corporation or political subdivision thereof.
| ||||||
22 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
23 | Section shall be
determined as follows, except as adjusted by | ||||||
24 | subsection (d-1):
|
| |||||||
| |||||||
1 | (1) In the case of an individual, trust or estate, for | ||||||
2 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
3 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
4 | year.
| ||||||
5 | (2) In the case of an individual, trust or estate, for | ||||||
6 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
7 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
8 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
9 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
10 | 3% of the
taxpayer's net income for the period after June | ||||||
11 | 30, 1989, as calculated
under Section 202.3.
| ||||||
12 | (3) In the case of an individual, trust or estate, for | ||||||
13 | taxable years
beginning after June 30, 1989 and ending on
| ||||||
14 | or before December 31, 2009 , an amount equal to 3% of the | ||||||
15 | taxpayer's net
income for the taxable year.
| ||||||
16 | (4) In the case of an individual, trust, or estate, for
| ||||||
17 | taxable years beginning prior to January 1, 2010 and ending
| ||||||
18 | after December 31, 2009, an amount equal to the sum of (i)
| ||||||
19 | 3% of the taxpayer's net income for the period prior to
| ||||||
20 | January 1, 2010, as calculated under Section 202.5, and
| ||||||
21 | (ii) the taxpayer's net income for the period after
| ||||||
22 | December 31, 2009 multiplied by the rate determined by the | ||||||
23 | Department under item (5) of this subsection, as calculated | ||||||
24 | under Section 202.5 (Blank) .
| ||||||
25 | (5) In the case of an individual, trust or estate, for
| ||||||
26 | taxable years beginning after December 31, 2009, the tax |
| |||||||
| |||||||
1 | shall be imposed at rate determined annually by the | ||||||
2 | Department by rule that is sufficient to provide for | ||||||
3 | deposits into the Homestead Property Tax Replacement Fund, | ||||||
4 | as required under Section 901 of this Act, in an amount | ||||||
5 | equal to the amount certified under subsection (b) of | ||||||
6 | Section 6z-80 of the State Finance Act for that taxable | ||||||
7 | year. The rate shall not be less than 3%. (Blank).
| ||||||
8 | (6) In the case of a corporation, for taxable years
| ||||||
9 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
10 | taxpayer's net income for the taxable year.
| ||||||
11 | (7) In the case of a corporation, for taxable years | ||||||
12 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
13 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
14 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
15 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
16 | taxpayer's net
income for the period after June 30, 1989, | ||||||
17 | as calculated under Section
202.3.
| ||||||
18 | (8) In the case of a corporation, for taxable years | ||||||
19 | beginning after
June 30, 1989, an amount equal to 4.8% of | ||||||
20 | the taxpayer's net income for the
taxable year.
| ||||||
21 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
22 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
23 | income
tax, there is also hereby imposed the Personal Property | ||||||
24 | Tax Replacement
Income Tax measured by net income on every | ||||||
25 | corporation (including Subchapter
S corporations), partnership | ||||||
26 | and trust, for each taxable year ending after
June 30, 1979. |
| |||||||
| |||||||
1 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
2 | income in or as a resident of this State. The Personal Property
| ||||||
3 | Tax Replacement Income Tax shall be in addition to the income | ||||||
4 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
5 | addition to all other
occupation or privilege taxes imposed by | ||||||
6 | this State or by any municipal
corporation or political | ||||||
7 | subdivision thereof.
| ||||||
8 | (d) Additional Personal Property Tax Replacement Income | ||||||
9 | Tax Rates.
The personal property tax replacement income tax | ||||||
10 | imposed by this subsection
and subsection (c) of this Section | ||||||
11 | in the case of a corporation, other
than a Subchapter S | ||||||
12 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
13 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
14 | income for the taxable year, except that
beginning on January | ||||||
15 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
16 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
17 | partnership, trust or a Subchapter S corporation shall be an | ||||||
18 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
19 | for the taxable year.
| ||||||
20 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
21 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
22 | Illinois Insurance Code,
whose state or country of domicile | ||||||
23 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
24 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
25 | are 50% or more of its total insurance
premiums as determined | ||||||
26 | under paragraph (2) of subsection (b) of Section 304,
except |
| |||||||
| |||||||
1 | that for purposes of this determination premiums from | ||||||
2 | reinsurance do
not include premiums from inter-affiliate | ||||||
3 | reinsurance arrangements),
beginning with taxable years ending | ||||||
4 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
5 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
6 | increased) to the rate at which the total amount of tax imposed | ||||||
7 | under this Act,
net of all credits allowed under this Act, | ||||||
8 | shall equal (i) the total amount of
tax that would be imposed | ||||||
9 | on the foreign insurer's net income allocable to
Illinois for | ||||||
10 | the taxable year by such foreign insurer's state or country of
| ||||||
11 | domicile if that net income were subject to all income taxes | ||||||
12 | and taxes
measured by net income imposed by such foreign | ||||||
13 | insurer's state or country of
domicile, net of all credits | ||||||
14 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
15 | income by the foreign insurer's state of domicile.
For the | ||||||
16 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
17 | a
mutual insurer under common management.
| ||||||
18 | (1) For the purposes of subsection (d-1), in no event | ||||||
19 | shall the sum of the
rates of tax imposed by subsections | ||||||
20 | (b) and (d) be reduced below the rate at
which the sum of:
| ||||||
21 | (A) the total amount of tax imposed on such foreign | ||||||
22 | insurer under
this Act for a taxable year, net of all | ||||||
23 | credits allowed under this Act, plus
| ||||||
24 | (B) the privilege tax imposed by Section 409 of the | ||||||
25 | Illinois Insurance
Code, the fire insurance company | ||||||
26 | tax imposed by Section 12 of the Fire
Investigation |
| |||||||
| |||||||
1 | Act, and the fire department taxes imposed under | ||||||
2 | Section 11-10-1
of the Illinois Municipal Code,
| ||||||
3 | equals 1.25% for taxable years ending prior to December 31, | ||||||
4 | 2003, or
1.75% for taxable years ending on or after | ||||||
5 | December 31, 2003, of the net
taxable premiums written for | ||||||
6 | the taxable year,
as described by subsection (1) of Section | ||||||
7 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
8 | no event increase the rates imposed under subsections
(b) | ||||||
9 | and (d).
| ||||||
10 | (2) Any reduction in the rates of tax imposed by this | ||||||
11 | subsection shall be
applied first against the rates imposed | ||||||
12 | by subsection (b) and only after the
tax imposed by | ||||||
13 | subsection (a) net of all credits allowed under this | ||||||
14 | Section
other than the credit allowed under subsection (i) | ||||||
15 | has been reduced to zero,
against the rates imposed by | ||||||
16 | subsection (d).
| ||||||
17 | This subsection (d-1) is exempt from the provisions of | ||||||
18 | Section 250.
| ||||||
19 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
20 | against the Personal Property Tax Replacement Income Tax for
| ||||||
21 | investment in qualified property.
| ||||||
22 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
23 | of
the basis of qualified property placed in service during | ||||||
24 | the taxable year,
provided such property is placed in | ||||||
25 | service on or after
July 1, 1984. There shall be allowed an | ||||||
26 | additional credit equal
to .5% of the basis of qualified |
| |||||||
| |||||||
1 | property placed in service during the
taxable year, | ||||||
2 | provided such property is placed in service on or
after | ||||||
3 | July 1, 1986, and the taxpayer's base employment
within | ||||||
4 | Illinois has increased by 1% or more over the preceding | ||||||
5 | year as
determined by the taxpayer's employment records | ||||||
6 | filed with the
Illinois Department of Employment Security. | ||||||
7 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
8 | met the 1% growth in base employment for
the first year in | ||||||
9 | which they file employment records with the Illinois
| ||||||
10 | Department of Employment Security. The provisions added to | ||||||
11 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
12 | Act 87-895) shall be
construed as declaratory of existing | ||||||
13 | law and not as a new enactment. If,
in any year, the | ||||||
14 | increase in base employment within Illinois over the
| ||||||
15 | preceding year is less than 1%, the additional credit shall | ||||||
16 | be limited to that
percentage times a fraction, the | ||||||
17 | numerator of which is .5% and the denominator
of which is | ||||||
18 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
19 | not be
allowed to the extent that it would reduce a | ||||||
20 | taxpayer's liability in any tax
year below zero, nor may | ||||||
21 | any credit for qualified property be allowed for any
year | ||||||
22 | other than the year in which the property was placed in | ||||||
23 | service in
Illinois. For tax years ending on or after | ||||||
24 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
25 | credit shall be allowed for the tax year in
which the | ||||||
26 | property is placed in service, or, if the amount of the |
| |||||||
| |||||||
1 | credit
exceeds the tax liability for that year, whether it | ||||||
2 | exceeds the original
liability or the liability as later | ||||||
3 | amended, such excess may be carried
forward and applied to | ||||||
4 | the tax liability of the 5 taxable years following
the | ||||||
5 | excess credit years if the taxpayer (i) makes investments | ||||||
6 | which cause
the creation of a minimum of 2,000 full-time | ||||||
7 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
8 | enterprise zone established pursuant to the Illinois
| ||||||
9 | Enterprise Zone Act and (iii) is certified by the | ||||||
10 | Department of Commerce
and Community Affairs (now | ||||||
11 | Department of Commerce and Economic Opportunity) as | ||||||
12 | complying with the requirements specified in
clause (i) and | ||||||
13 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
14 | Community Affairs (now Department of Commerce and Economic | ||||||
15 | Opportunity) shall notify the Department of Revenue of all | ||||||
16 | such
certifications immediately. For tax years ending | ||||||
17 | after December 31, 1988,
the credit shall be allowed for | ||||||
18 | the tax year in which the property is
placed in service, | ||||||
19 | or, if the amount of the credit exceeds the tax
liability | ||||||
20 | for that year, whether it exceeds the original liability or | ||||||
21 | the
liability as later amended, such excess may be carried | ||||||
22 | forward and applied
to the tax liability of the 5 taxable | ||||||
23 | years following the excess credit
years. The credit shall | ||||||
24 | be applied to the earliest year for which there is
a | ||||||
25 | liability. If there is credit from more than one tax year | ||||||
26 | that is
available to offset a liability, earlier credit |
| |||||||
| |||||||
1 | shall be applied first.
| ||||||
2 | (2) The term "qualified property" means property | ||||||
3 | which:
| ||||||
4 | (A) is tangible, whether new or used, including | ||||||
5 | buildings and structural
components of buildings and | ||||||
6 | signs that are real property, but not including
land or | ||||||
7 | improvements to real property that are not a structural | ||||||
8 | component of a
building such as landscaping, sewer | ||||||
9 | lines, local access roads, fencing, parking
lots, and | ||||||
10 | other appurtenances;
| ||||||
11 | (B) is depreciable pursuant to Section 167 of the | ||||||
12 | Internal Revenue Code,
except that "3-year property" | ||||||
13 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
14 | eligible for the credit provided by this subsection | ||||||
15 | (e);
| ||||||
16 | (C) is acquired by purchase as defined in Section | ||||||
17 | 179(d) of
the Internal Revenue Code;
| ||||||
18 | (D) is used in Illinois by a taxpayer who is | ||||||
19 | primarily engaged in
manufacturing, or in mining coal | ||||||
20 | or fluorite, or in retailing, or was placed in service | ||||||
21 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
22 | Zone established pursuant to the River Edge | ||||||
23 | Redevelopment Zone Act; and
| ||||||
24 | (E) has not previously been used in Illinois in | ||||||
25 | such a manner and by
such a person as would qualify for | ||||||
26 | the credit provided by this subsection
(e) or |
| |||||||
| |||||||
1 | subsection (f).
| ||||||
2 | (3) For purposes of this subsection (e), | ||||||
3 | "manufacturing" means
the material staging and production | ||||||
4 | of tangible personal property by
procedures commonly | ||||||
5 | regarded as manufacturing, processing, fabrication, or
| ||||||
6 | assembling which changes some existing material into new | ||||||
7 | shapes, new
qualities, or new combinations. For purposes of | ||||||
8 | this subsection
(e) the term "mining" shall have the same | ||||||
9 | meaning as the term "mining" in
Section 613(c) of the | ||||||
10 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
11 | the term "retailing" means the sale of tangible personal | ||||||
12 | property or
services rendered in conjunction with the sale | ||||||
13 | of tangible consumer goods
or commodities.
| ||||||
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, 2008, except for costs incurred | ||||||
17 | pursuant to a binding
contract entered into on or before | ||||||
18 | December 31, 2008.
| ||||||
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 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
16 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone.
| ||||||
17 | (1) A taxpayer conducting a trade or business in an | ||||||
18 | enterprise zone
or a High Impact Business designated by the | ||||||
19 | Department of Commerce and
Economic Opportunity or for | ||||||
20 | taxable years ending on or after December 31, 2006, in a | ||||||
21 | River Edge Redevelopment Zone conducting a trade or | ||||||
22 | business in a federally designated
Foreign Trade Zone or | ||||||
23 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
24 | by subsections (a) and (b) of this Section in the amount of | ||||||
25 | $500
per eligible employee hired to work in the zone during | ||||||
26 | the taxable year.
|
| |||||||
| |||||||
1 | (2) To qualify for the credit:
| ||||||
2 | (A) the taxpayer must hire 5 or more eligible | ||||||
3 | employees to work in an
enterprise zone, River Edge | ||||||
4 | Redevelopment Zone, or federally designated Foreign | ||||||
5 | Trade Zone or Sub-Zone
during the taxable year;
| ||||||
6 | (B) the taxpayer's total employment within the | ||||||
7 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
8 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
9 | must
increase by 5 or more full-time employees beyond | ||||||
10 | the total employed in that
zone at the end of the | ||||||
11 | previous tax year for which a jobs tax
credit under | ||||||
12 | this Section was taken, or beyond the total employed by | ||||||
13 | the
taxpayer as of December 31, 1985, whichever is | ||||||
14 | later; and
| ||||||
15 | (C) the eligible employees must be employed 180 | ||||||
16 | consecutive days in
order to be deemed hired for | ||||||
17 | purposes of this subsection.
| ||||||
18 | (3) An "eligible employee" means an employee who is:
| ||||||
19 | (A) Certified by the Department of Commerce and | ||||||
20 | Economic Opportunity
as "eligible for services" | ||||||
21 | pursuant to regulations promulgated in
accordance with | ||||||
22 | Title II of the Job Training Partnership Act, Training
| ||||||
23 | Services for the Disadvantaged or Title III of the Job | ||||||
24 | Training Partnership
Act, Employment and Training | ||||||
25 | Assistance for Dislocated Workers Program.
| ||||||
26 | (B) Hired after the enterprise zone, River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone, or federally designated Foreign
| ||||||
2 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
3 | business was located in that zone, whichever is later.
| ||||||
4 | (C) Employed in the enterprise zone, River Edge | ||||||
5 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
6 | An employee is employed in an
enterprise zone or | ||||||
7 | federally designated Foreign Trade Zone or Sub-Zone
if | ||||||
8 | his services are rendered there or it is the base of
| ||||||
9 | operations for the services performed.
| ||||||
10 | (D) A full-time employee working 30 or more hours | ||||||
11 | per week.
| ||||||
12 | (4) For tax years ending on or after December 31, 1985 | ||||||
13 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
14 | for the tax year in which
the eligible employees are hired. | ||||||
15 | For tax years ending on or after
December 31, 1988, the | ||||||
16 | credit shall be allowed for the tax year immediately
| ||||||
17 | following the tax year in which the eligible employees are | ||||||
18 | hired. If the
amount of the credit exceeds the tax | ||||||
19 | liability for that year, whether it
exceeds the original | ||||||
20 | liability or the liability as later amended, such
excess | ||||||
21 | may be carried forward and applied to the tax liability of | ||||||
22 | the 5
taxable years following the excess credit year. The | ||||||
23 | credit shall be
applied to the earliest year for which | ||||||
24 | there is a liability. If there is
credit from more than one | ||||||
25 | tax year that is available to offset a liability,
earlier | ||||||
26 | credit shall be applied first.
|
| |||||||
| |||||||
1 | (5) The Department of Revenue shall promulgate such | ||||||
2 | rules and regulations
as may be deemed necessary to carry | ||||||
3 | out the purposes of this subsection (g).
| ||||||
4 | (6) The credit shall be available for eligible | ||||||
5 | employees hired on or
after January 1, 1986.
| ||||||
6 | (h) Investment credit; High Impact Business.
| ||||||
7 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
8 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
9 | allowed a credit
against the tax imposed by subsections (a) | ||||||
10 | and (b) of this Section for
investment in qualified
| ||||||
11 | property which is placed in service by a Department of | ||||||
12 | Commerce and Economic Opportunity
designated High Impact | ||||||
13 | Business. The credit shall be .5% of the basis
for such | ||||||
14 | property. The credit shall not be available (i) until the | ||||||
15 | minimum
investments in qualified property set forth in | ||||||
16 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
17 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
18 | time authorized in subsection (b-5) of the Illinois
| ||||||
19 | Enterprise Zone Act for entities designated as High Impact | ||||||
20 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
21 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
22 | Act, and shall not be allowed to the extent that it would
| ||||||
23 | reduce a taxpayer's liability for the tax imposed by | ||||||
24 | subsections (a) and (b) of
this Section to below zero. The | ||||||
25 | credit applicable to such investments shall be
taken in the | ||||||
26 | taxable year in which such investments have been completed. |
| |||||||
| |||||||
1 | The
credit for additional investments beyond the minimum | ||||||
2 | investment by a designated
high impact business authorized | ||||||
3 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
4 | Enterprise Zone Act shall be available only in the taxable | ||||||
5 | year in
which the property is placed in service and shall | ||||||
6 | not be allowed to the extent
that it would reduce a | ||||||
7 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
8 | and (b) of this Section to below zero.
For tax years ending | ||||||
9 | on or after December 31, 1987, the credit shall be
allowed | ||||||
10 | for the tax year in which the property is placed in | ||||||
11 | service, or, if
the amount of the credit exceeds the tax | ||||||
12 | liability for that year, whether
it exceeds the original | ||||||
13 | liability or the liability as later amended, such
excess | ||||||
14 | may be carried forward and applied to the tax liability of | ||||||
15 | the 5
taxable years following the excess credit year. The | ||||||
16 | credit shall be
applied to the earliest year for which | ||||||
17 | there is a liability. If there is
credit from more than one | ||||||
18 | tax year that is available to offset a liability,
the | ||||||
19 | credit accruing first in time shall be applied first.
| ||||||
20 | Changes made in this subdivision (h)(1) by Public Act | ||||||
21 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
22 | reflect existing law.
| ||||||
23 | (2) The term qualified property means property which:
| ||||||
24 | (A) is tangible, whether new or used, including | ||||||
25 | buildings and
structural components of buildings;
| ||||||
26 | (B) is depreciable pursuant to Section 167 of the |
| |||||||
| |||||||
1 | Internal Revenue
Code, except that "3-year property" | ||||||
2 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
3 | eligible for the credit provided by this subsection | ||||||
4 | (h);
| ||||||
5 | (C) is acquired by purchase as defined in Section | ||||||
6 | 179(d) of the
Internal Revenue Code; and
| ||||||
7 | (D) is not eligible for the Enterprise Zone | ||||||
8 | Investment Credit provided
by subsection (f) of this | ||||||
9 | Section.
| ||||||
10 | (3) The basis of qualified property shall be the basis | ||||||
11 | used to compute
the depreciation deduction for federal | ||||||
12 | income tax purposes.
| ||||||
13 | (4) If the basis of the property for federal income tax | ||||||
14 | depreciation
purposes is increased after it has been placed | ||||||
15 | in service in a federally
designated Foreign Trade Zone or | ||||||
16 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
17 | such increase shall be deemed property placed in service on
| ||||||
18 | the date of such increase in basis.
| ||||||
19 | (5) The term "placed in service" shall have the same | ||||||
20 | meaning as under
Section 46 of the Internal Revenue Code.
| ||||||
21 | (6) If during any taxable year ending on or before | ||||||
22 | December 31, 1996,
any property ceases to be qualified
| ||||||
23 | property in the hands of the taxpayer within 48 months | ||||||
24 | after being placed
in service, or the situs of any | ||||||
25 | qualified property is moved outside
Illinois within 48 | ||||||
26 | months after being placed in service, the tax imposed
under |
| |||||||
| |||||||
1 | subsections (a) and (b) of this Section for such taxable | ||||||
2 | year shall
be increased. Such increase shall be determined | ||||||
3 | by (i) recomputing the
investment credit which would have | ||||||
4 | been allowed for the year in which
credit for such property | ||||||
5 | was originally allowed by eliminating such
property from | ||||||
6 | such computation, and (ii) subtracting such recomputed | ||||||
7 | credit
from the amount of credit previously allowed. For | ||||||
8 | the purposes of this
paragraph (6), a reduction of the | ||||||
9 | basis of qualified property resulting
from a | ||||||
10 | redetermination of the purchase price shall be deemed a | ||||||
11 | disposition
of qualified property to the extent of such | ||||||
12 | reduction.
| ||||||
13 | (7) Beginning with tax years ending after December 31, | ||||||
14 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
15 | subsection (h) and thereby is
granted a tax abatement and | ||||||
16 | the taxpayer relocates its entire facility in
violation of | ||||||
17 | the explicit terms and length of the contract under Section
| ||||||
18 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
19 | subsections
(a) and (b) of this Section shall be increased | ||||||
20 | for the taxable year
in which the taxpayer relocated its | ||||||
21 | facility by an amount equal to the
amount of credit | ||||||
22 | received by the taxpayer under this subsection (h).
| ||||||
23 | (i) Credit for Personal Property Tax Replacement Income | ||||||
24 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
25 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
26 | (b) of this Section for the tax imposed by subsections (c)
and |
| |||||||
| |||||||
1 | (d) of this Section. This credit shall be computed by | ||||||
2 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
3 | Section by a fraction, the numerator
of which is base income | ||||||
4 | allocable to Illinois and the denominator of which is
Illinois | ||||||
5 | base income, and further multiplying the product by the tax | ||||||
6 | rate
imposed by subsections (a) and (b) of this Section.
| ||||||
7 | Any credit earned on or after December 31, 1986 under
this | ||||||
8 | subsection which is unused in the year
the credit is computed | ||||||
9 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
10 | and (b) for that year (whether it exceeds the original
| ||||||
11 | liability or the liability as later amended) may be carried | ||||||
12 | forward and
applied to the tax liability imposed by subsections | ||||||
13 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
14 | year, provided that no credit may
be carried forward to any | ||||||
15 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
16 | applied first to the earliest year for which there is a | ||||||
17 | liability. If
there is a credit under this subsection from more | ||||||
18 | than one tax year that is
available to offset a liability the | ||||||
19 | earliest credit arising under this
subsection shall be applied | ||||||
20 | first.
| ||||||
21 | If, during any taxable year ending on or after December 31, | ||||||
22 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
23 | Section for which a taxpayer
has claimed a credit under this | ||||||
24 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
25 | shall also be reduced. Such reduction shall be
determined by | ||||||
26 | recomputing the credit to take into account the reduced tax
|
| |||||||
| |||||||
1 | imposed by subsections (c) and (d). If any portion of the
| ||||||
2 | reduced amount of credit has been carried to a different | ||||||
3 | taxable year, an
amended return shall be filed for such taxable | ||||||
4 | year to reduce the amount of
credit claimed.
| ||||||
5 | (j) Training expense credit. Beginning with tax years | ||||||
6 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
7 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
8 | imposed by subsections (a) and (b) under this Section
for all | ||||||
9 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
10 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
11 | of Illinois by a taxpayer, for educational or vocational | ||||||
12 | training in
semi-technical or technical fields or semi-skilled | ||||||
13 | or skilled fields, which
were deducted from gross income in the | ||||||
14 | computation of taxable income. The
credit against the tax | ||||||
15 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
16 | training expenses. 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 (j) 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 | Any credit allowed under this subsection which is unused in | ||||||
25 | the year
the credit is earned may be carried forward to each of | ||||||
26 | the 5 taxable
years following the year for which the credit is |
| |||||||
| |||||||
1 | first computed until it is
used. This credit shall be applied | ||||||
2 | first to the earliest year for which
there is a liability. If | ||||||
3 | there is a credit under this subsection from more
than one tax | ||||||
4 | year that is available to offset a liability the earliest
| ||||||
5 | credit arising under this subsection shall be applied first. No | ||||||
6 | carryforward
credit may be claimed in any tax year ending on or | ||||||
7 | after
December 31, 2003.
| ||||||
8 | (k) Research and development credit.
| ||||||
9 | For tax years ending after July 1, 1990 and prior to
| ||||||
10 | December 31, 2003, and beginning again for tax years ending on | ||||||
11 | or after December 31, 2004, a taxpayer shall be
allowed a | ||||||
12 | credit against the tax imposed by subsections (a) and (b) of | ||||||
13 | this
Section for increasing research activities in this State. | ||||||
14 | The credit
allowed against the tax imposed by subsections (a) | ||||||
15 | and (b) shall be equal
to 6 1/2% of the qualifying expenditures | ||||||
16 | for increasing research activities
in this State. For partners, | ||||||
17 | shareholders of subchapter S corporations, and
owners of | ||||||
18 | limited liability companies, if the liability company is | ||||||
19 | treated as a
partnership for purposes of federal and State | ||||||
20 | income taxation, there shall be
allowed a credit under this | ||||||
21 | subsection to be determined in accordance with the
| ||||||
22 | determination of income and distributive share of income under | ||||||
23 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
24 | Code.
| ||||||
25 | For purposes of this subsection, "qualifying expenditures" | ||||||
26 | means the
qualifying expenditures as defined for the federal |
| |||||||
| |||||||
1 | credit for increasing
research activities which would be | ||||||
2 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
3 | which are conducted in this State, "qualifying
expenditures for | ||||||
4 | increasing research activities in this State" means the
excess | ||||||
5 | of qualifying expenditures for the taxable year in which | ||||||
6 | incurred
over qualifying expenditures for the base period, | ||||||
7 | "qualifying expenditures
for the base period" means the average | ||||||
8 | of the qualifying expenditures for
each year in the base | ||||||
9 | period, and "base period" means the 3 taxable years
immediately | ||||||
10 | preceding the taxable year for which the determination is
being | ||||||
11 | made.
| ||||||
12 | Any credit in excess of the tax liability for the taxable | ||||||
13 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
14 | unused credit shown on its final completed return carried over | ||||||
15 | as a credit
against the tax liability for the following 5 | ||||||
16 | taxable years or until it has
been fully used, whichever occurs | ||||||
17 | first; provided that no credit earned in a tax year ending | ||||||
18 | prior to December 31, 2003 may be carried forward to any year | ||||||
19 | ending on or after December 31, 2003.
| ||||||
20 | If an unused credit is carried forward to a given year from | ||||||
21 | 2 or more
earlier years, that credit arising in the earliest | ||||||
22 | year will be applied
first against the tax liability for the | ||||||
23 | given year. If a tax liability for
the given year still | ||||||
24 | remains, the credit from the next earliest year will
then be | ||||||
25 | applied, and so on, until all credits have been used or no tax
| ||||||
26 | liability for the given year remains. Any remaining unused |
| |||||||
| |||||||
1 | credit or
credits then will be carried forward to the next | ||||||
2 | following year in which a
tax liability is incurred, except | ||||||
3 | that no credit can be carried forward to
a year which is more | ||||||
4 | than 5 years after the year in which the expense for
which the | ||||||
5 | credit is given was incurred.
| ||||||
6 | No inference shall be drawn from this amendatory Act of the | ||||||
7 | 91st General
Assembly in construing this Section for taxable | ||||||
8 | years beginning before January
1, 1999.
| ||||||
9 | (l) Environmental Remediation Tax Credit.
| ||||||
10 | (i) For tax years ending after December 31, 1997 and on | ||||||
11 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
12 | credit against the tax
imposed by subsections (a) and (b) | ||||||
13 | of this Section for certain amounts paid
for unreimbursed | ||||||
14 | eligible remediation costs, as specified in this | ||||||
15 | subsection.
For purposes of this Section, "unreimbursed | ||||||
16 | eligible remediation costs" means
costs approved by the | ||||||
17 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
18 | Section 58.14 of the Environmental Protection Act that were | ||||||
19 | paid in performing
environmental remediation at a site for | ||||||
20 | which a No Further Remediation Letter
was issued by the | ||||||
21 | Agency and recorded under Section 58.10 of the | ||||||
22 | Environmental
Protection Act. The credit must be claimed | ||||||
23 | for the taxable year in which
Agency approval of the | ||||||
24 | eligible remediation costs is granted. The credit is
not | ||||||
25 | available to any taxpayer if the taxpayer or any related | ||||||
26 | party caused or
contributed to, in any material respect, a |
| |||||||
| |||||||
1 | release of regulated substances on,
in, or under the site | ||||||
2 | that was identified and addressed by the remedial
action | ||||||
3 | pursuant to the Site Remediation Program of the | ||||||
4 | Environmental Protection
Act. After the Pollution Control | ||||||
5 | Board rules are adopted pursuant to the
Illinois | ||||||
6 | Administrative Procedure Act for the administration and | ||||||
7 | enforcement of
Section 58.9 of the Environmental | ||||||
8 | Protection Act, determinations as to credit
availability | ||||||
9 | for purposes of this Section shall be made consistent with | ||||||
10 | those
rules. For purposes of this Section, "taxpayer" | ||||||
11 | includes a person whose tax
attributes the taxpayer has | ||||||
12 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
13 | and "related party" includes the persons disallowed a | ||||||
14 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
15 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
16 | a related taxpayer, as well as any of its
partners. The | ||||||
17 | credit allowed against the tax imposed by subsections (a) | ||||||
18 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
19 | remediation costs in
excess of $100,000 per site, except | ||||||
20 | that the $100,000 threshold shall not apply
to any site | ||||||
21 | contained in an enterprise zone as determined by the | ||||||
22 | Department of
Commerce and Community Affairs (now | ||||||
23 | Department of Commerce and Economic Opportunity). The | ||||||
24 | total credit allowed shall not exceed
$40,000 per year with | ||||||
25 | a maximum total of $150,000 per site. For partners and
| ||||||
26 | shareholders of subchapter S corporations, there shall be |
| |||||||
| |||||||
1 | allowed a credit
under this subsection to be determined in | ||||||
2 | accordance with the determination of
income and | ||||||
3 | distributive share of income under Sections 702 and 704 and
| ||||||
4 | subchapter S of the Internal Revenue Code.
| ||||||
5 | (ii) A credit allowed under this subsection that is | ||||||
6 | unused in the year
the credit is earned may be carried | ||||||
7 | forward to each of the 5 taxable years
following the year | ||||||
8 | for which the credit is first earned until it is used.
The | ||||||
9 | term "unused credit" does not include any amounts of | ||||||
10 | unreimbursed eligible
remediation costs in excess of the | ||||||
11 | maximum credit per site authorized under
paragraph (i). | ||||||
12 | This credit shall be applied first to the earliest year
for | ||||||
13 | which there is a liability. If there is a credit under this | ||||||
14 | subsection
from more than one tax year that is available to | ||||||
15 | offset a liability, the
earliest credit arising under this | ||||||
16 | subsection shall be applied first. A
credit allowed under | ||||||
17 | this subsection may be sold to a buyer as part of a sale
of | ||||||
18 | all or part of the remediation site for which the credit | ||||||
19 | was granted. The
purchaser of a remediation site and the | ||||||
20 | tax credit shall succeed to the unused
credit and remaining | ||||||
21 | carry-forward period of the seller. To perfect the
| ||||||
22 | transfer, the assignor shall record the transfer in the | ||||||
23 | chain of title for the
site and provide written notice to | ||||||
24 | the Director of the Illinois Department of
Revenue of the | ||||||
25 | assignor's intent to sell the remediation site and the | ||||||
26 | amount of
the tax credit to be transferred as a portion of |
| |||||||
| |||||||
1 | the sale. In no event may a
credit be transferred to any | ||||||
2 | taxpayer if the taxpayer or a related party would
not be | ||||||
3 | eligible under the provisions of subsection (i).
| ||||||
4 | (iii) For purposes of this Section, the term "site" | ||||||
5 | shall have the same
meaning as under Section 58.2 of the | ||||||
6 | Environmental Protection Act.
| ||||||
7 | (m) Education expense credit. Beginning with tax years | ||||||
8 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
9 | of one or more qualifying pupils shall be allowed a credit
| ||||||
10 | against the tax imposed by subsections (a) and (b) of this | ||||||
11 | Section for
qualified education expenses incurred on behalf of | ||||||
12 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
13 | qualified education expenses, but in no
event may the total | ||||||
14 | credit under this subsection claimed by a
family that is the
| ||||||
15 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
16 | credit under
this subsection reduce the taxpayer's liability | ||||||
17 | under this Act to less than
zero. This subsection is exempt | ||||||
18 | from the provisions of Section 250 of this
Act.
| ||||||
19 | For purposes of this subsection:
| ||||||
20 | "Qualifying pupils" means individuals who (i) are | ||||||
21 | residents of the State of
Illinois, (ii) are under the age of | ||||||
22 | 21 at the close of the school year for
which a credit is | ||||||
23 | sought, and (iii) during the school year for which a credit
is | ||||||
24 | sought were full-time pupils enrolled in a kindergarten through | ||||||
25 | twelfth
grade education program at any school, as defined in | ||||||
26 | this subsection.
|
| |||||||
| |||||||
1 | "Qualified education expense" means the amount incurred
on | ||||||
2 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
3 | book fees, and
lab fees at the school in which the pupil is | ||||||
4 | enrolled during the regular school
year.
| ||||||
5 | "School" means any public or nonpublic elementary or | ||||||
6 | secondary school in
Illinois that is in compliance with Title | ||||||
7 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
8 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
9 | except that nothing shall be construed to require a child to
| ||||||
10 | attend any particular public or nonpublic school to qualify for | ||||||
11 | the credit
under this Section.
| ||||||
12 | "Custodian" means, with respect to qualifying pupils, an | ||||||
13 | Illinois resident
who is a parent, the parents, a legal | ||||||
14 | guardian, or the legal guardians of the
qualifying pupils.
| ||||||
15 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
16 | credit.
| ||||||
17 | (i) For tax years ending on or after December 31, 2006, | ||||||
18 | a taxpayer shall be allowed a credit against the tax | ||||||
19 | imposed by subsections (a) and (b) of this Section for | ||||||
20 | certain amounts paid for unreimbursed eligible remediation | ||||||
21 | costs, as specified in this subsection. For purposes of | ||||||
22 | this Section, "unreimbursed eligible remediation costs" | ||||||
23 | means costs approved by the Illinois Environmental | ||||||
24 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
25 | Environmental Protection Act that were paid in performing | ||||||
26 | environmental remediation at a site within a River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone for which a No Further Remediation | ||||||
2 | Letter was issued by the Agency and recorded under Section | ||||||
3 | 58.10 of the Environmental Protection Act. The credit must | ||||||
4 | be claimed for the taxable year in which Agency approval of | ||||||
5 | the eligible remediation costs is granted. The credit is | ||||||
6 | not available to any taxpayer if the taxpayer or any | ||||||
7 | related party caused or contributed to, in any material | ||||||
8 | respect, a release of regulated substances on, in, or under | ||||||
9 | the site that was identified and addressed by the remedial | ||||||
10 | action pursuant to the Site Remediation Program of the | ||||||
11 | Environmental Protection Act. Determinations as to credit | ||||||
12 | availability for purposes of this Section shall be made | ||||||
13 | consistent with rules adopted by the Pollution Control | ||||||
14 | Board pursuant to the Illinois Administrative Procedure | ||||||
15 | Act for the administration and enforcement of Section 58.9 | ||||||
16 | of the Environmental Protection Act. For purposes of this | ||||||
17 | Section, "taxpayer" includes a person whose tax attributes | ||||||
18 | the taxpayer has succeeded to under Section 381 of the | ||||||
19 | Internal Revenue Code and "related party" includes the | ||||||
20 | persons disallowed a deduction for losses by paragraphs | ||||||
21 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
22 | Code by virtue of being a related taxpayer, as well as any | ||||||
23 | of its partners. The credit allowed against the tax imposed | ||||||
24 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
25 | unreimbursed eligible remediation costs in excess of | ||||||
26 | $100,000 per site. |
| |||||||
| |||||||
1 | (ii) A credit allowed under this subsection that is | ||||||
2 | unused in the year the credit is earned may be carried | ||||||
3 | forward to each of the 5 taxable years following the year | ||||||
4 | for which the credit is first earned until it is used. This | ||||||
5 | credit shall be applied first to the earliest year for | ||||||
6 | which there is a liability. If there is a credit under this | ||||||
7 | subsection from more than one tax year that is available to | ||||||
8 | offset a liability, the earliest credit arising under this | ||||||
9 | subsection shall be applied first. A credit allowed under | ||||||
10 | this subsection may be sold to a buyer as part of a sale of | ||||||
11 | all or part of the remediation site for which the credit | ||||||
12 | was granted. The purchaser of a remediation site and the | ||||||
13 | tax credit shall succeed to the unused credit and remaining | ||||||
14 | carry-forward period of the seller. To perfect the | ||||||
15 | transfer, the assignor shall record the transfer in the | ||||||
16 | chain of title for the site and provide written notice to | ||||||
17 | the Director of the Illinois Department of Revenue of the | ||||||
18 | assignor's intent to sell the remediation site and the | ||||||
19 | amount of the tax credit to be transferred as a portion of | ||||||
20 | the sale. In no event may a credit be transferred to any | ||||||
21 | taxpayer if the taxpayer or a related party would not be | ||||||
22 | eligible under the provisions of subsection (i). | ||||||
23 | (iii) For purposes of this Section, the term "site" | ||||||
24 | shall have the same meaning as under Section 58.2 of the | ||||||
25 | Environmental Protection Act. | ||||||
26 | (iv) This subsection is exempt from the provisions of |
| |||||||
| |||||||
1 | Section 250.
| ||||||
2 | (Source: P.A. 94-1021, eff. 7-12-06; 95-454, eff. 8-27-07.)
| ||||||
3 | (35 ILCS 5/202.5 new) | ||||||
4 | Sec. 202.5. Net income attributable to the period prior to
| ||||||
5 | January 1, 2010 and net income attributable to the period after
| ||||||
6 | December 31, 2009. | ||||||
7 | (a) In general. With respect to the taxable year of a
| ||||||
8 | taxpayer beginning prior to January 1, 2010 and ending after
| ||||||
9 | December 31, 2009, net income for the period after December 31, | ||||||
10 | 2009 is that amount that bears the same ratio to the
taxpayer's | ||||||
11 | net income for the entire taxable year as the number
of days in | ||||||
12 | that year after December 31, 2009 bears to the total
number of | ||||||
13 | days in that year, and the net income for the period
prior to | ||||||
14 | January 1, 2009 is that amount that bears the
same ratio to the | ||||||
15 | taxpayer's net income for the entire taxable
year as the number | ||||||
16 | of days in that year prior to January 1, 2010 bears to the | ||||||
17 | total number of days in that year. | ||||||
18 | (b) Election to attribute income and deduction items
| ||||||
19 | specifically to the respective portions of a taxable year prior
| ||||||
20 | to January 1, 2010 and after December 31, 2009. In the case of
| ||||||
21 | a taxpayer with a taxable year beginning prior to January 1, | ||||||
22 | 2010 and ending after December 31, 2009, the taxpayer may
| ||||||
23 | elect, instead of the procedure established in subsection (a)
| ||||||
24 | of this Section, to determine net income on a specific
| ||||||
25 | accounting basis for the 2 portions of his or her taxable year: |
| |||||||
| |||||||
1 | (i) from the beginning of the taxable year through
| ||||||
2 | December 31, 2009; and | ||||||
3 | (ii) from January 1, 2010 through the end of the
| ||||||
4 | taxable year. | ||||||
5 | If the taxpayer elects specific accounting under this
| ||||||
6 | subsection, there shall be taken into account in computing base
| ||||||
7 | income for each of the 2 portions of the taxable year only
| ||||||
8 | those items earned, received, paid, incurred or accrued in each | ||||||
9 | such period. The standard exemption provided by Section 204
| ||||||
10 | must be divided between the respective periods in amounts that
| ||||||
11 | bear the same ratio to the total exemption allowable under
| ||||||
12 | Section 204 (determined without regard to this Section) as the
| ||||||
13 | total number of days in each such period bears to the total
| ||||||
14 | number of days in the taxable year. The election provided by
| ||||||
15 | this subsection must be made in form and manner
that the | ||||||
16 | Department requires by rule, but
must be made no later than the | ||||||
17 | due date (including any
extensions thereof) for the filing of | ||||||
18 | the return for the
taxable year, and is irrevocable.
| ||||||
19 | (35 ILCS 5/901) (from Ch. 120, par. 9-901)
| ||||||
20 | Sec. 901. Collection Authority.
| ||||||
21 | (a) In general.
| ||||||
22 | The Department shall collect the taxes imposed by this Act. | ||||||
23 | The Department
shall collect certified past due child support | ||||||
24 | amounts under Section 2505-650
of the Department of Revenue Law | ||||||
25 | (20 ILCS 2505/2505-650). Except as
provided in subsections (c) |
| |||||||
| |||||||
1 | and (e) of this Section, money collected
pursuant to | ||||||
2 | subsections (a) and (b) of Section 201 of this Act shall be
| ||||||
3 | paid into the General Revenue Fund in the State treasury; money
| ||||||
4 | collected pursuant to subsections (c) and (d) of Section 201 of | ||||||
5 | this Act
shall be paid into the Personal Property Tax | ||||||
6 | Replacement Fund, a special
fund in the State Treasury; and | ||||||
7 | money collected under Section 2505-650 of the
Department of | ||||||
8 | Revenue Law (20 ILCS 2505/2505-650) shall be paid
into the
| ||||||
9 | Child Support Enforcement Trust Fund, a special fund outside | ||||||
10 | the State
Treasury, or
to the State
Disbursement Unit | ||||||
11 | established under Section 10-26 of the Illinois Public Aid
| ||||||
12 | Code, as directed by the Department of Healthcare and Family | ||||||
13 | Services.
| ||||||
14 | (b) Local Government
Governmental Distributive Fund.
| ||||||
15 | Beginning August 1, 1969, and continuing through June 30, | ||||||
16 | 1994, the Treasurer
shall transfer each month from the General | ||||||
17 | Revenue Fund to a special fund in
the State treasury, to be | ||||||
18 | known as the "Local Government Distributive Fund", an
amount | ||||||
19 | equal to 1/12 of the net revenue realized from the tax imposed | ||||||
20 | by
subsections (a) and (b) of Section 201 of this Act during | ||||||
21 | the preceding month.
Beginning July 1, 1994, and continuing | ||||||
22 | through June 30, 1995, the Treasurer
shall transfer each month | ||||||
23 | from the General Revenue Fund to the Local Government
| ||||||
24 | Distributive Fund an amount equal to 1/11 of the net revenue | ||||||
25 | realized from the
tax imposed by subsections (a) and (b) of | ||||||
26 | Section 201 of this Act during the
preceding month. Beginning |
| |||||||
| |||||||
1 | July 1, 1995, the Treasurer shall transfer each
month from the | ||||||
2 | General Revenue Fund to the Local Government Distributive Fund
| ||||||
3 | an amount equal to the net of (i) 1/10 of the net revenue | ||||||
4 | realized from the
tax imposed by
subsections (a) and (b) of | ||||||
5 | Section 201 of the Illinois Income Tax Act during
the preceding | ||||||
6 | month , except that the net revenue attributable to the increase
| ||||||
7 | in the income tax imposed by subsections (a) and (b) of Section
| ||||||
8 | 201 of this Act in accordance with this amendatory Act of the
| ||||||
9 | 96th General Assembly are not included in the calculation of | ||||||
10 | the amount
transferred to the Local Government Distributive | ||||||
11 | Fund
(ii) minus, beginning July 1, 2003 and ending June 30, | ||||||
12 | 2004, $6,666,666, and
beginning July 1,
2004,
zero. Net revenue | ||||||
13 | realized for a month shall be defined as the
revenue from the | ||||||
14 | tax imposed by subsections (a) and (b) of Section 201 of this
| ||||||
15 | Act which is deposited in the General Revenue Fund, the | ||||||
16 | Educational Assistance
Fund and the Income Tax Surcharge Local | ||||||
17 | Government Distributive Fund during the
month minus the amount | ||||||
18 | paid out of the General Revenue Fund in State warrants
during | ||||||
19 | that same month as refunds to taxpayers for overpayment of | ||||||
20 | liability
under the tax imposed by subsections (a) and (b) of | ||||||
21 | Section 201 of this Act.
| ||||||
22 | (c) Deposits Into Income Tax Refund Fund.
| ||||||
23 | (1) Beginning on January 1, 1989 and thereafter, the | ||||||
24 | Department shall
deposit a percentage of the amounts | ||||||
25 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
26 | (3), (4), and (5) of Section 201 of this Act into a fund in |
| |||||||
| |||||||
1 | the State
treasury known as the Income Tax Refund Fund. The | ||||||
2 | Department shall deposit 6%
of such amounts during the | ||||||
3 | period beginning January 1, 1989 and ending on June
30, | ||||||
4 | 1989. Beginning with State fiscal year 1990 and for each | ||||||
5 | fiscal year
thereafter, the percentage deposited into the | ||||||
6 | Income Tax Refund Fund during a
fiscal year shall be the | ||||||
7 | Annual Percentage. For fiscal years 1999 through
2001, the | ||||||
8 | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | ||||||
9 | Annual Percentage shall be 8%.
For fiscal year 2004, the | ||||||
10 | Annual Percentage shall be 11.7%. Upon the effective date | ||||||
11 | of this amendatory Act of the 93rd General Assembly, the | ||||||
12 | Annual Percentage shall be 10% for fiscal year 2005. For | ||||||
13 | fiscal year 2006, the Annual Percentage shall be 9.75%. For | ||||||
14 | fiscal
year 2007, the Annual Percentage shall be 9.75%. For | ||||||
15 | fiscal year 2008, the Annual Percentage shall be 7.75%. For | ||||||
16 | fiscal year 2009, the Annual Percentage shall be 9.75%. For | ||||||
17 | all other
fiscal years, the
Annual Percentage shall be | ||||||
18 | calculated as a fraction, the numerator of which
shall be | ||||||
19 | the amount of refunds approved for payment by the | ||||||
20 | Department during
the preceding fiscal year as a result of | ||||||
21 | overpayment of tax liability under
subsections (a) and | ||||||
22 | (b)(1), (2), and (3) , (4), and (5) of Section 201 of this | ||||||
23 | Act plus the
amount of such refunds remaining approved but | ||||||
24 | unpaid at the end of the
preceding fiscal year, minus the | ||||||
25 | amounts transferred into the Income Tax
Refund Fund from | ||||||
26 | the Tobacco Settlement Recovery Fund, and
the denominator |
| |||||||
| |||||||
1 | of which shall be the amounts which will be collected | ||||||
2 | pursuant
to subsections (a) and (b)(1), (2), and (3) , (4), | ||||||
3 | and (5) of Section 201 of this Act during
the preceding | ||||||
4 | fiscal year; except that in State fiscal year 2002, the | ||||||
5 | Annual
Percentage shall in no event exceed 7.6%. The | ||||||
6 | Director of Revenue shall
certify the Annual Percentage to | ||||||
7 | the Comptroller on the last business day of
the fiscal year | ||||||
8 | immediately preceding the fiscal year for which it is to be
| ||||||
9 | effective.
| ||||||
10 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
11 | Department shall
deposit a percentage of the amounts | ||||||
12 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
13 | (8), (c) and (d) of Section 201
of this Act into a fund in | ||||||
14 | the State treasury known as the Income Tax
Refund Fund. The | ||||||
15 | Department shall deposit 18% of such amounts during the
| ||||||
16 | period beginning January 1, 1989 and ending on June 30, | ||||||
17 | 1989. Beginning
with State fiscal year 1990 and for each | ||||||
18 | fiscal year thereafter, the
percentage deposited into the | ||||||
19 | Income Tax Refund Fund during a fiscal year
shall be the | ||||||
20 | Annual Percentage. For fiscal years 1999, 2000, and 2001, | ||||||
21 | the
Annual Percentage shall be 19%.
For fiscal year 2003, | ||||||
22 | the Annual Percentage shall be 27%. For fiscal year
2004, | ||||||
23 | the Annual Percentage shall be 32%.
Upon the effective date | ||||||
24 | of this amendatory Act of the 93rd General Assembly, the | ||||||
25 | Annual Percentage shall be 24% for fiscal year 2005.
For | ||||||
26 | fiscal year 2006, the Annual Percentage shall be 20%. For |
| |||||||
| |||||||
1 | fiscal
year 2007, the Annual Percentage shall be 17.5%. For | ||||||
2 | fiscal year 2008, the Annual Percentage shall be 15.5%. For | ||||||
3 | fiscal year 2009, the Annual Percentage shall be 17.5%. For | ||||||
4 | all other fiscal years, the Annual
Percentage shall be | ||||||
5 | calculated
as a fraction, the numerator of which shall be | ||||||
6 | the amount of refunds
approved for payment by the | ||||||
7 | Department during the preceding fiscal year as
a result of | ||||||
8 | overpayment of tax liability under subsections (a) and | ||||||
9 | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this | ||||||
10 | Act plus the
amount of such refunds remaining approved but | ||||||
11 | unpaid at the end of the
preceding fiscal year, and the | ||||||
12 | denominator of
which shall be the amounts which will be | ||||||
13 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
14 | (8), (c) and (d) of Section 201 of this Act during the
| ||||||
15 | preceding fiscal year; except that in State fiscal year | ||||||
16 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
17 | The Director of Revenue shall
certify the Annual Percentage | ||||||
18 | to the Comptroller on the last business day of
the fiscal | ||||||
19 | year immediately preceding the fiscal year for which it is | ||||||
20 | to be
effective.
| ||||||
21 | (3) The Comptroller shall order transferred and the | ||||||
22 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
23 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||||||
24 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
25 | (iii) $35,000,000 in January, 2003.
| ||||||
26 | (d) Expenditures from Income Tax Refund Fund.
|
| |||||||
| |||||||
1 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
2 | Refund Fund
shall be expended exclusively for the purpose | ||||||
3 | of paying refunds resulting
from overpayment of tax | ||||||
4 | liability under Section 201 of this Act, for paying
rebates | ||||||
5 | under Section 208.1 in the event that the amounts in the | ||||||
6 | Homeowners'
Tax Relief Fund are insufficient for that | ||||||
7 | purpose,
and for
making transfers pursuant to this | ||||||
8 | subsection (d).
| ||||||
9 | (2) The Director shall order payment of refunds | ||||||
10 | resulting from
overpayment of tax liability under Section | ||||||
11 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
12 | extent that amounts collected pursuant
to Section 201 of | ||||||
13 | this Act and transfers pursuant to this subsection (d)
and | ||||||
14 | item (3) of subsection (c) have been deposited and retained | ||||||
15 | in the
Fund.
| ||||||
16 | (3) As soon as possible after the end of each fiscal | ||||||
17 | year, the Director
shall
order transferred and the State | ||||||
18 | Treasurer and State Comptroller shall
transfer from the | ||||||
19 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
20 | Replacement Fund an amount, certified by the Director to | ||||||
21 | the Comptroller,
equal to the excess of the amount | ||||||
22 | collected pursuant to subsections (c) and
(d) of Section | ||||||
23 | 201 of this Act deposited into the Income Tax Refund Fund
| ||||||
24 | during the fiscal year over the amount of refunds resulting | ||||||
25 | from
overpayment of tax liability under subsections (c) and | ||||||
26 | (d) of Section 201
of this Act paid from the Income Tax |
| |||||||
| |||||||
1 | Refund Fund during the fiscal year.
| ||||||
2 | (4) As soon as possible after the end of each fiscal | ||||||
3 | year, the Director shall
order transferred and the State | ||||||
4 | Treasurer and State Comptroller shall
transfer from the | ||||||
5 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
6 | Refund Fund an amount, certified by the Director to the | ||||||
7 | Comptroller, equal
to the excess of the amount of refunds | ||||||
8 | resulting from overpayment of tax
liability under | ||||||
9 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
10 | from the Income Tax Refund Fund during the fiscal year over | ||||||
11 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
12 | Section 201 of this Act
deposited into the Income Tax | ||||||
13 | Refund Fund during the fiscal year.
| ||||||
14 | (4.5) As soon as possible after the end of fiscal year | ||||||
15 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
16 | order transferred and the State Treasurer and
State | ||||||
17 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
18 | to the General
Revenue Fund any surplus remaining in the | ||||||
19 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
20 | excluding for fiscal years 2000, 2001, and 2002
amounts | ||||||
21 | attributable to transfers under item (3) of subsection (c) | ||||||
22 | less refunds
resulting from the earned income tax credit.
| ||||||
23 | (5) This Act shall constitute an irrevocable and | ||||||
24 | continuing
appropriation from the Income Tax Refund Fund | ||||||
25 | for the purpose of paying
refunds upon the order of the | ||||||
26 | Director in accordance with the provisions of
this Section.
|
| |||||||
| |||||||
1 | (e) Deposits into the Education Assistance Fund and the | ||||||
2 | Income Tax
Surcharge Local Government Distributive Fund.
| ||||||
3 | On July 1, 1991, and thereafter, of the amounts collected | ||||||
4 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
5 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
6 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
7 | State Treasury. Beginning July 1, 1991,
and continuing through | ||||||
8 | January 31, 1993, of the amounts collected pursuant to
| ||||||
9 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
10 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
11 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
12 | Local Government Distributive Fund in the State
Treasury. | ||||||
13 | Beginning February 1, 1993 and continuing through June 30, | ||||||
14 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
15 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
16 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
17 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
18 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
19 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
20 | collected under subsections
(a) and (b) of Section 201 of this | ||||||
21 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
22 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
23 | Local Government Distributive Fund in the State Treasury.
| ||||||
24 | (f) Deposits into the Homestead Property Tax Replacement | ||||||
25 | Fund. On January 1, 2010 and thereafter, of the amounts | ||||||
26 | collected
pursuant to subsections (a) and (b) of Section 201 of |
| |||||||
| |||||||
1 | this Act,
minus deposits into the Income Tax Refund Fund, the | ||||||
2 | Department
shall deposit into the Homestead Property Tax | ||||||
3 | Replacement Fund the amount that is attributable to the | ||||||
4 | increase in the amounts
collected under subsections (a) and (b) | ||||||
5 | of Section 201 of
this Act under this amendatory Act of the | ||||||
6 | 96th General
Assembly. | ||||||
7 | (Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-707, | ||||||
8 | eff. 1-11-08; 95-744, eff. 7-18-08; revised 10-23-08.)
| ||||||
9 | Section 15. The Property Tax Code is amended by changing | ||||||
10 | Sections 14-20, 15-10, 20-178, and 31-25 and by adding Section | ||||||
11 | 15-163 as follows:
| ||||||
12 | (35 ILCS 200/14-20)
| ||||||
13 | Sec. 14-20. Certificate of error; counties of less than | ||||||
14 | 3,000,000. In any
county with less than 3,000,000 inhabitants, | ||||||
15 | if, at any time before judgment or
order of sale is entered in | ||||||
16 | any proceeding to collect or to enjoin the
collection of taxes | ||||||
17 | based upon any assessment of any property, the chief county
| ||||||
18 | assessment officer discovers an error or mistake in the | ||||||
19 | assessment (other than
errors of judgment as to the valuation | ||||||
20 | of the property), he or she shall issue
to the person | ||||||
21 | erroneously assessed a certificate setting forth the nature of
| ||||||
22 | the error and the cause or causes of the error.
In any county | ||||||
23 | with less than 3,000,000 inhabitants, if an owner fails to
file
| ||||||
24 | an application for the Senior Citizens Assessment Freeze |
| |||||||
| |||||||
1 | Homestead Exemption
provided in Section 15-172 during the | ||||||
2 | previous assessment year and qualifies
for the exemption, the | ||||||
3 | Chief County Assessment Officer pursuant to this
Section,
or | ||||||
4 | the Board of Review pursuant to Section 16-75, shall issue a
| ||||||
5 | certificate of error setting forth the correct taxable | ||||||
6 | valuation of the
property.
The certificate, when properly
| ||||||
7 | endorsed by the majority of the board of review, showing their | ||||||
8 | concurrence, and
not otherwise, may be used in evidence in any | ||||||
9 | court of competent jurisdiction,
and when so introduced in | ||||||
10 | evidence, shall become a part of the court record and
shall not | ||||||
11 | be removed from the files except on an order of the court.
| ||||||
12 | (Source: P.A. 90-552, eff. 12-12-97; 91-377, eff. 7-30-99.)
| ||||||
13 | (35 ILCS 200/15-10)
| ||||||
14 | Sec. 15-10. Exempt property; procedures for certification. | ||||||
15 | All property
granted an exemption by the Department pursuant to | ||||||
16 | the requirements of
Section 15-5 and
described in the Sections | ||||||
17 | following Section 15-30 and preceding Section 16-5,
to the | ||||||
18 | extent therein limited, is exempt from taxation.
In order to | ||||||
19 | maintain that exempt status, the titleholder or the owner of | ||||||
20 | the
beneficial interest of any property
that
is exempt must | ||||||
21 | file with the chief county assessment
officer, on or before | ||||||
22 | January 31 of each year (May 31 in the case of property
| ||||||
23 | exempted by Section 15-170) , an affidavit stating whether there | ||||||
24 | has been any
change in the ownership or use of the property or | ||||||
25 | the status of the
owner-resident , or that a disabled veteran |
| |||||||
| |||||||
1 | who qualifies under Section 15-165
owned and used the property | ||||||
2 | as of January 1 of that year.
The nature of any
change shall be | ||||||
3 | stated in the affidavit. Failure to file an affidavit shall,
in | ||||||
4 | the discretion of the assessment officer, constitute cause to | ||||||
5 | terminate the
exemption of that property, notwithstanding any | ||||||
6 | other provision of this Code.
Owners of 5 or more such exempt | ||||||
7 | parcels within a county may file a single
annual affidavit in | ||||||
8 | lieu of an affidavit for each parcel. The assessment
officer, | ||||||
9 | upon request, shall furnish an affidavit form to the owners, in | ||||||
10 | which
the owner may state whether there has been any change in | ||||||
11 | the ownership or use
of the property or status of the owner or | ||||||
12 | resident as of January 1 of that
year. The owner of 5 or more | ||||||
13 | exempt parcels shall list all the properties
giving the same | ||||||
14 | information for each parcel as required of owners who file
| ||||||
15 | individual affidavits.
| ||||||
16 | However, titleholders or owners of the beneficial interest | ||||||
17 | in any property
exempted under any of the following provisions | ||||||
18 | are not required to
submit an annual filing under this Section:
| ||||||
19 | (1) Section 15-45 (burial grounds) in counties of less | ||||||
20 | than 3,000,000
inhabitants and owned by a not-for-profit
| ||||||
21 | organization.
| ||||||
22 | (2) Section 15-40.
| ||||||
23 | (3) Section 15-50 (United States property).
| ||||||
24 | If there is a change in use or ownership, however, notice | ||||||
25 | must be filed
pursuant to Section 15-20.
| ||||||
26 | An application for the standard homestead exemption must be |
| |||||||
| |||||||
1 | filed in accordance with Section 15-167. homestead exemptions | ||||||
2 | shall be filed as provided in
Section 15-170 (senior citizens | ||||||
3 | homestead exemption), Section 15-172 (senior
citizens | ||||||
4 | assessment freeze homestead exemption), and Sections
15-175 | ||||||
5 | (general homestead exemption), 15-176
(general alternative
| ||||||
6 | homestead exemption), and 15-177 (long-time occupant homestead | ||||||
7 | exemption), respectively.
| ||||||
8 | (Source: P.A. 95-644, eff. 10-12-07.)
| ||||||
9 | (35 ILCS 200/15-163 new)
| ||||||
10 | Sec. 15-163. Standard homestead exemption. | ||||||
11 | (a) Beginning with the 2010 taxable year, homestead | ||||||
12 | property is entitled to an annual homestead exemption of | ||||||
13 | $100,000. | ||||||
14 | (b) If married persons maintain and reside in separate | ||||||
15 | residences qualifying as homestead property, each residence is | ||||||
16 | entitled to receive 50% of the total reduction in equalized | ||||||
17 | assessed valuation provided by this Section. | ||||||
18 | (c) In a cooperative where a homestead exemption has been | ||||||
19 | granted, the cooperative association or its management firm | ||||||
20 | shall credit the savings resulting from that exemption only to | ||||||
21 | the apportioned tax liability of the owner who qualified for | ||||||
22 | the exemption. Any person who willfully refuses to so credit | ||||||
23 | the savings is guilty of a Class B misdemeanor. | ||||||
24 | (d) In all counties, the assessor or chief county | ||||||
25 | assessment officer may determine the eligibility of |
| |||||||
| |||||||
1 | residential property to receive the homestead exemption and the | ||||||
2 | amount of the exemption by application, visual inspection, | ||||||
3 | questionnaire or other reasonable methods. The determination | ||||||
4 | shall be made in accordance with guidelines established by the | ||||||
5 | Department, provided that the taxpayer applying for an | ||||||
6 | additional general exemption under this Section shall submit to | ||||||
7 | the chief county assessment officer an application with an | ||||||
8 | affidavit of the applicant's total household income, age, | ||||||
9 | marital status (and, if married, the name and address of the | ||||||
10 | applicant's spouse, if known), and principal dwelling place of | ||||||
11 | members of the household on January 1 of the taxable year. The | ||||||
12 | Department shall issue guidelines establishing a method for | ||||||
13 | verifying the accuracy of the affidavits filed by applicants | ||||||
14 | under this paragraph. The applications shall be clearly marked | ||||||
15 | as applications for the Standard General Homestead Exemption. | ||||||
16 | (e) In the event of a sale of homestead property the | ||||||
17 | homestead exemption remains in effect for the remainder of the | ||||||
18 | assessment year of the sale. The assessor or chief county | ||||||
19 | assessment officer may require the new owner of the property to | ||||||
20 | apply for the homestead exemption for the following assessment | ||||||
21 | year. | ||||||
22 | (f) As used in this Section: | ||||||
23 | "Homestead property" includes (i) residential property | ||||||
24 | that is occupied by its owner or owners as his, her, or their | ||||||
25 | principal dwelling place, or (ii) that is a leasehold interest | ||||||
26 | on which a single family residence is situated, that is |
| |||||||
| |||||||
1 | occupied as a residence by a person who has an ownership | ||||||
2 | interest therein, legal or equitable or as a lessee, and on | ||||||
3 | which the person is liable for the payment of property taxes.
| ||||||
4 | (35 ILCS 200/20-178)
| ||||||
5 | Sec. 20-178. Certificate of error; refund; interest. When | ||||||
6 | the county
collector
makes any refunds
due on certificates of | ||||||
7 | error issued under Sections 14-15 through 14-25
that have been | ||||||
8 | either
certified or adjudicated, the county collector shall pay | ||||||
9 | the taxpayer interest
on the amount of the refund
at the rate | ||||||
10 | of 0.5% per month.
| ||||||
11 | No interest shall be due under this Section for any time | ||||||
12 | prior to 60 days
after
the effective date of
this amendatory | ||||||
13 | Act of the 91st General Assembly. For certificates of error
| ||||||
14 | issued prior to
the
effective date of this amendatory
Act of | ||||||
15 | the 91st General Assembly, the county collector shall
pay the | ||||||
16 | taxpayer interest from 60 days after the effective date of this
| ||||||
17 | amendatory Act of the 91st General Assembly
until the date the | ||||||
18 | refund is
paid. For certificates of error issued on or after | ||||||
19 | the effective date of this
amendatory Act of the 91st General | ||||||
20 | Assembly,
interest shall be paid from 60
days after the | ||||||
21 | certificate of error is issued by the chief county assessment
| ||||||
22 | officer to the
date the refund is made.
To cover the cost of | ||||||
23 | interest, the county collector shall proportionately
reduce | ||||||
24 | the distribution of
taxes collected for each taxing district in | ||||||
25 | which the property is situated.
|
| |||||||
| |||||||
1 | This Section shall not apply to any certificate of error | ||||||
2 | granting a homestead
exemption under
Section 15-167, 15-170, | ||||||
3 | 15-172,
15-175, 15-176, or 15-177.
| ||||||
4 | (Source: P.A. 95-644, eff. 10-12-07.)
| ||||||
5 | (35 ILCS 200/31-25)
| ||||||
6 | Sec. 31-25. Transfer declaration. At the time a deed, a | ||||||
7 | document
transferring a controlling interest in real property,
| ||||||
8 | or trust document is
presented for recordation, or within 3 | ||||||
9 | business days after the transfer is
effected, whichever is | ||||||
10 | earlier,
there shall also be presented to the recorder or
| ||||||
11 | registrar of titles a declaration, signed by at least one of | ||||||
12 | the sellers and
also signed by at least one of the buyers in | ||||||
13 | the transaction or by the
attorneys or agents for the sellers | ||||||
14 | or buyers. The declaration shall state
information including, | ||||||
15 | but not limited to: (a) the value of the real property
or | ||||||
16 | beneficial interest in real property located in Illinois
so | ||||||
17 | transferred; (b) the parcel
identifying number of the property; | ||||||
18 | (c) the legal description of
the
property; (d) the date of the | ||||||
19 | deed, the date the transfer was effected,
or the date of the | ||||||
20 | trust document; (e) the type of deed, transfer,
or
trust | ||||||
21 | document; (f) the address of the property; (g) the type of | ||||||
22 | improvement,
if any, on the property; (h) information as to | ||||||
23 | whether the
transfer is
between related individuals or | ||||||
24 | corporate affiliates or is a
compulsory transaction; (i)
the | ||||||
25 | lot size or acreage; (j) the value of personal property sold |
| |||||||
| |||||||
1 | with the
real estate; (k) the year the contract was initiated | ||||||
2 | if an installment sale;
(l) any homestead exemptions under | ||||||
3 | Article 15 of the Property Tax Code, , as provided in Sections | ||||||
4 | 15-170, 15-172, 15-175, and 15-176 as reflected on the most | ||||||
5 | recent annual tax bill; and (m) the name, address, and | ||||||
6 | telephone number of the person preparing the
declaration. | ||||||
7 | Except as provided in Section 31-45, a deed, a document
| ||||||
8 | transferring a controlling interest in real property,
or trust
| ||||||
9 | document shall not be accepted for recordation unless it is | ||||||
10 | accompanied by a
declaration containing all the information | ||||||
11 | requested
in the declaration. When the declaration is signed by | ||||||
12 | an attorney or agent on
behalf of sellers or buyers who have | ||||||
13 | the power of direction to deal with the
title to the real | ||||||
14 | estate under a land trust agreement, the trustee being the
mere | ||||||
15 | repository of record legal title with a duty of conveying the | ||||||
16 | real estate
only when and if directed in writing by the | ||||||
17 | beneficiary or beneficiaries having
the power of direction, the | ||||||
18 | attorneys or agents executing the declaration on
behalf of the | ||||||
19 | sellers or buyers need identify only the land trust that is the
| ||||||
20 | repository of record legal title and not the beneficiary or | ||||||
21 | beneficiaries
having the power of direction under the land | ||||||
22 | trust agreement. The declaration
form shall be prescribed by | ||||||
23 | the Department and shall contain sales information
questions.
| ||||||
24 | For sales occurring during a period in which the provisions of | ||||||
25 | Section 17-10
require the Department to adjust sale prices for | ||||||
26 | seller paid points and
prevailing cost of cash,
the declaration |
| |||||||
| |||||||
1 | form shall contain questions
regarding the financing of the | ||||||
2 | sale. The subject of the financing questions
shall include any | ||||||
3 | direct seller participation in the financing of the sale or
| ||||||
4 | information on financing that is unconventional so as to affect | ||||||
5 | the fair cash
value received by the seller. The intent of the | ||||||
6 | sales and financing questions
is to aid in the reduction in the | ||||||
7 | number of buyers required to provide
financing information | ||||||
8 | necessary for the adjustment outlined in Section 17-10.
For | ||||||
9 | sales occurring during a period in which the provisions of | ||||||
10 | Section 17-10
require the Department to adjust sale prices for | ||||||
11 | seller paid points and
prevailing cost of cash,
the declaration | ||||||
12 | form shall include, at a minimum, the following data: (a)
| ||||||
13 | seller paid points, (b) the sales price, (c) type of
financing
| ||||||
14 | (conventional, VA, FHA, seller-financed, or other), (d) down
| ||||||
15 | payment, (e) term,
(f) interest rate, (g) type and description | ||||||
16 | of interest
rate (fixed, adjustable
or renegotiable), and (h) | ||||||
17 | an appropriate place for the inclusion of special
facts or | ||||||
18 | circumstances, if any. The Department
shall
provide an adequate | ||||||
19 | supply of forms to each recorder and registrar of titles in
the | ||||||
20 | State.
| ||||||
21 | (Source: P.A. 93-657, eff. 6-1-04; 94-489, eff. 8-8-05.)
| ||||||
22 | (35 ILCS 200/15-165 rep.)
| ||||||
23 | (35 ILCS 200/15-167 rep.)
| ||||||
24 | (35 ILCS 200/15-168 rep.)
| ||||||
25 | (35 ILCS 200/15-169 rep.)
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | (35 ILCS 200/15-170 rep.)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | (35 ILCS 200/15-172 rep.)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | (35 ILCS 200/15-175 rep.)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | (35 ILCS 200/15-176 rep.)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | (35 ILCS 200/15-177 rep.)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | (35 ILCS 200/15-180 rep.)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Section 20. The Property Tax Code is amended by repealing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Sections 15-165, 15-167, 15-168, 15-169, 15-170, 15-172, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | 15-175, 15-176, 15-177, and 15-180.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | Section 99. Effective date. This Act takes effect January | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | 1, 2010.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||