Revenue & Finance Committee
Filed: 4/22/2010
 
 

 




 

 		












09600SB1826ham001

LRB096 09394 HLH 38792 a






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AMENDMENT TO SENATE BILL 1826 




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    AMENDMENT NO. ______. Amend Senate Bill 1826, AS AMENDED, 
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with reference to page and line numbers of Senate Amendment No. 
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1, by replacing everything from line 23 on page 86 through line 
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17 on page 87 with the following:


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            "(F) Cooperatives.  In the case of a cooperative 
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        corporation or
association, the taxable income of such 
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        organization determined in
accordance with the 
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        provisions of Section 1381 through 1388 of the
Internal 
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        Revenue Code, but without regard to the prohibition 
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        against offsetting losses from patronage activities 
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        against income from nonpatronage activities; except 
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        that a cooperative corporation or association may make 
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        an election to follow its federal income tax treatment 
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        of patronage losses and  nonpatronage losses.  In the 
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        event such election is made, such losses shall be 
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        computed and carried over in a manner consistent with 
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        subsection (a) of Section 207 of this Act and 
 


 






09600SB1826ham001
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        apportioned by the apportionment factor reported by 
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        the cooperative on its Illinois income tax return filed 
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        for the taxable year in which the losses are incurred.  
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        The election shall be effective for all taxable years 
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        with original returns due on or after the date of the 
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        election.  In addition, the cooperative may file an 
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        amended return or returns, as allowed under this Act, 
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        to provide that the election shall be effective for 
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        losses incurred or carried forward for taxable years 
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        occurring prior to the date of the election.  Once made, 
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        the election may only be revoked upon approval of the 
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        Director.  The Department shall adopt rules setting 
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        forth requirements for documenting the elections and 
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        any resulting Illinois net loss and the standards to be 
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        used by the Director in evaluating requests to revoke 
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        elections.  This amendatory Act of the 96th General 
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        Assembly  is declaratory of existing law;".