Sen. Toi W. Hutchinson

Filed: 4/30/2019

 

 


 

 


 
10100SB0687sam001LRB101 04448 HLH 60053 a

1
AMENDMENT TO SENATE BILL 687

2    AMENDMENT NO. ______. Amend Senate Bill 687 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5changing Sections 201, 208, 502, and 901 and by adding Sections
6201.1 and 229 as follows:
 
7    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
8    Sec. 201. Tax imposed.
9    (a) In general. A tax measured by net income is hereby
10imposed on every individual, corporation, trust and estate for
11each taxable year ending after July 31, 1969 on the privilege
12of earning or receiving income in or as a resident of this
13State. Such tax shall be in addition to all other occupation or
14privilege taxes imposed by this State or by any municipal
15corporation or political subdivision thereof.
16    (b) Rates. The tax imposed by subsection (a) of this

 

 

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1Section shall be determined as follows, except as adjusted by
2subsection (d-1):
3        (1) In the case of an individual, trust or estate, for
4    taxable years ending prior to July 1, 1989, an amount equal
5    to 2 1/2% of the taxpayer's net income for the taxable
6    year.
7        (2) In the case of an individual, trust or estate, for
8    taxable years beginning prior to July 1, 1989 and ending
9    after June 30, 1989, an amount equal to the sum of (i) 2
10    1/2% of the taxpayer's net income for the period prior to
11    July 1, 1989, as calculated under Section 202.3, and (ii)
12    3% of the taxpayer's net income for the period after June
13    30, 1989, as calculated under Section 202.3.
14        (3) In the case of an individual, trust or estate, for
15    taxable years beginning after June 30, 1989, and ending
16    prior to January 1, 2011, an amount equal to 3% of the
17    taxpayer's net income for the taxable year.
18        (4) In the case of an individual, trust, or estate, for
19    taxable years beginning prior to January 1, 2011, and
20    ending after December 31, 2010, an amount equal to the sum
21    of (i) 3% of the taxpayer's net income for the period prior
22    to January 1, 2011, as calculated under Section 202.5, and
23    (ii) 5% of the taxpayer's net income for the period after
24    December 31, 2010, as calculated under Section 202.5.
25        (5) In the case of an individual, trust, or estate, for
26    taxable years beginning on or after January 1, 2011, and

 

 

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1    ending prior to January 1, 2015, an amount equal to 5% of
2    the taxpayer's net income for the taxable year.
3        (5.1) In the case of an individual, trust, or estate,
4    for taxable years beginning prior to January 1, 2015, and
5    ending after December 31, 2014, an amount equal to the sum
6    of (i) 5% of the taxpayer's net income for the period prior
7    to January 1, 2015, as calculated under Section 202.5, and
8    (ii) 3.75% of the taxpayer's net income for the period
9    after December 31, 2014, as calculated under Section 202.5.
10        (5.2) In the case of an individual, trust, or estate,
11    for taxable years beginning on or after January 1, 2015,
12    and ending prior to July 1, 2017, an amount equal to 3.75%
13    of the taxpayer's net income for the taxable year.
14        (5.3) In the case of an individual, trust, or estate,
15    for taxable years beginning prior to July 1, 2017, and
16    ending after June 30, 2017, an amount equal to the sum of
17    (i) 3.75% of the taxpayer's net income for the period prior
18    to July 1, 2017, as calculated under Section 202.5, and
19    (ii) 4.95% of the taxpayer's net income for the period
20    after June 30, 2017, as calculated under Section 202.5.
21        (5.4) In the case of an individual, trust, or estate,
22    for taxable years beginning on or after July 1, 2017 and
23    beginning prior to January 1, 2021, an amount equal to
24    4.95% of the taxpayer's net income for the taxable year.
25        (5.5) In the case of an individual, trust, or estate,
26    for taxable years beginning on or after January 1, 2021, an

 

 

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1    amount calculated under the rate structure set forth in
2    Section 201.1.
3        (6) In the case of a corporation, for taxable years
4    ending prior to July 1, 1989, an amount equal to 4% of the
5    taxpayer's net income for the taxable year.
6        (7) In the case of a corporation, for taxable years
7    beginning prior to July 1, 1989 and ending after June 30,
8    1989, an amount equal to the sum of (i) 4% of the
9    taxpayer's net income for the period prior to July 1, 1989,
10    as calculated under Section 202.3, and (ii) 4.8% of the
11    taxpayer's net income for the period after June 30, 1989,
12    as calculated under Section 202.3.
13        (8) In the case of a corporation, for taxable years
14    beginning after June 30, 1989, and ending prior to January
15    1, 2011, an amount equal to 4.8% of the taxpayer's net
16    income for the taxable year.
17        (9) In the case of a corporation, for taxable years
18    beginning prior to January 1, 2011, and ending after
19    December 31, 2010, an amount equal to the sum of (i) 4.8%
20    of the taxpayer's net income for the period prior to
21    January 1, 2011, as calculated under Section 202.5, and
22    (ii) 7% of the taxpayer's net income for the period after
23    December 31, 2010, as calculated under Section 202.5.
24        (10) In the case of a corporation, for taxable years
25    beginning on or after January 1, 2011, and ending prior to
26    January 1, 2015, an amount equal to 7% of the taxpayer's

 

 

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1    net income for the taxable year.
2        (11) In the case of a corporation, for taxable years
3    beginning prior to January 1, 2015, and ending after
4    December 31, 2014, an amount equal to the sum of (i) 7% of
5    the taxpayer's net income for the period prior to January
6    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
7    of the taxpayer's net income for the period after December
8    31, 2014, as calculated under Section 202.5.
9        (12) In the case of a corporation, for taxable years
10    beginning on or after January 1, 2015, and ending prior to
11    July 1, 2017, an amount equal to 5.25% of the taxpayer's
12    net income for the taxable year.
13        (13) In the case of a corporation, for taxable years
14    beginning prior to July 1, 2017, and ending after June 30,
15    2017, an amount equal to the sum of (i) 5.25% of the
16    taxpayer's net income for the period prior to July 1, 2017,
17    as calculated under Section 202.5, and (ii) 7% of the
18    taxpayer's net income for the period after June 30, 2017,
19    as calculated under Section 202.5.
20        (14) In the case of a corporation, for taxable years
21    beginning on or after July 1, 2017 and beginning prior to
22    January 1, 2021, an amount equal to 7% of the taxpayer's
23    net income for the taxable year.
24        (15) In the case of a corporation, for taxable years
25    beginning on or after January 1, 2021, an amount equal to
26    7.99% of the taxpayer's net income for the taxable year.

 

 

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1    The rates under this subsection (b) are subject to the
2provisions of Section 201.5.
3    (c) Personal Property Tax Replacement Income Tax.
4Beginning on July 1, 1979 and thereafter, in addition to such
5income tax, there is also hereby imposed the Personal Property
6Tax Replacement Income Tax measured by net income on every
7corporation (including Subchapter S corporations), partnership
8and trust, for each taxable year ending after June 30, 1979.
9Such taxes are imposed on the privilege of earning or receiving
10income in or as a resident of this State. The Personal Property
11Tax Replacement Income Tax shall be in addition to the income
12tax imposed by subsections (a) and (b) of this Section and in
13addition to all other occupation or privilege taxes imposed by
14this State or by any municipal corporation or political
15subdivision thereof.
16    (d) Additional Personal Property Tax Replacement Income
17Tax Rates. The personal property tax replacement income tax
18imposed by this subsection and subsection (c) of this Section
19in the case of a corporation, other than a Subchapter S
20corporation and except as adjusted by subsection (d-1), shall
21be an additional amount equal to 2.85% of such taxpayer's net
22income for the taxable year, except that beginning on January
231, 1981, and thereafter, the rate of 2.85% specified in this
24subsection shall be reduced to 2.5%, and in the case of a
25partnership, trust or a Subchapter S corporation shall be an
26additional amount equal to 1.5% of such taxpayer's net income

 

 

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1for the taxable year.
2    (d-1) Rate reduction for certain foreign insurers. In the
3case of a foreign insurer, as defined by Section 35A-5 of the
4Illinois Insurance Code, whose state or country of domicile
5imposes on insurers domiciled in Illinois a retaliatory tax
6(excluding any insurer whose premiums from reinsurance assumed
7are 50% or more of its total insurance premiums as determined
8under paragraph (2) of subsection (b) of Section 304, except
9that for purposes of this determination premiums from
10reinsurance do not include premiums from inter-affiliate
11reinsurance arrangements), beginning with taxable years ending
12on or after December 31, 1999, the sum of the rates of tax
13imposed by subsections (b) and (d) shall be reduced (but not
14increased) to the rate at which the total amount of tax imposed
15under this Act, net of all credits allowed under this Act,
16shall equal (i) the total amount of tax that would be imposed
17on the foreign insurer's net income allocable to Illinois for
18the taxable year by such foreign insurer's state or country of
19domicile if that net income were subject to all income taxes
20and taxes measured by net income imposed by such foreign
21insurer's state or country of domicile, net of all credits
22allowed or (ii) a rate of zero if no such tax is imposed on such
23income by the foreign insurer's state of domicile. For the
24purposes of this subsection (d-1), an inter-affiliate includes
25a mutual insurer under common management.
26        (1) For the purposes of subsection (d-1), in no event

 

 

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1    shall the sum of the rates of tax imposed by subsections
2    (b) and (d) be reduced below the rate at which the sum of:
3            (A) the total amount of tax imposed on such foreign
4        insurer under this Act for a taxable year, net of all
5        credits allowed under this Act, plus
6            (B) the privilege tax imposed by Section 409 of the
7        Illinois Insurance Code, the fire insurance company
8        tax imposed by Section 12 of the Fire Investigation
9        Act, and the fire department taxes imposed under
10        Section 11-10-1 of the Illinois Municipal Code,
11    equals 1.25% for taxable years ending prior to December 31,
12    2003, or 1.75% for taxable years ending on or after
13    December 31, 2003, of the net taxable premiums written for
14    the taxable year, as described by subsection (1) of Section
15    409 of the Illinois Insurance Code. This paragraph will in
16    no event increase the rates imposed under subsections (b)
17    and (d).
18        (2) Any reduction in the rates of tax imposed by this
19    subsection shall be applied first against the rates imposed
20    by subsection (b) and only after the tax imposed by
21    subsection (a) net of all credits allowed under this
22    Section other than the credit allowed under subsection (i)
23    has been reduced to zero, against the rates imposed by
24    subsection (d).
25    This subsection (d-1) is exempt from the provisions of
26Section 250.

 

 

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1    (e) Investment credit. A taxpayer shall be allowed a credit
2against the Personal Property Tax Replacement Income Tax for
3investment in qualified property.
4        (1) A taxpayer shall be allowed a credit equal to .5%
5    of the basis of qualified property placed in service during
6    the taxable year, provided such property is placed in
7    service on or after July 1, 1984. There shall be allowed an
8    additional credit equal to .5% of the basis of qualified
9    property placed in service during the taxable year,
10    provided such property is placed in service on or after
11    July 1, 1986, and the taxpayer's base employment within
12    Illinois has increased by 1% or more over the preceding
13    year as determined by the taxpayer's employment records
14    filed with the Illinois Department of Employment Security.
15    Taxpayers who are new to Illinois shall be deemed to have
16    met the 1% growth in base employment for the first year in
17    which they file employment records with the Illinois
18    Department of Employment Security. The provisions added to
19    this Section by Public Act 85-1200 (and restored by Public
20    Act 87-895) shall be construed as declaratory of existing
21    law and not as a new enactment. If, in any year, the
22    increase in base employment within Illinois over the
23    preceding year is less than 1%, the additional credit shall
24    be limited to that percentage times a fraction, the
25    numerator of which is .5% and the denominator of which is
26    1%, but shall not exceed .5%. The investment credit shall

 

 

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1    not be allowed to the extent that it would reduce a
2    taxpayer's liability in any tax year below zero, nor may
3    any credit for qualified property be allowed for any year
4    other than the year in which the property was placed in
5    service in Illinois. For tax years ending on or after
6    December 31, 1987, and on or before December 31, 1988, the
7    credit shall be allowed for the tax year in which the
8    property is placed in service, or, if the amount of the
9    credit exceeds the tax liability for that year, whether it
10    exceeds the original liability or the liability as later
11    amended, such excess may be carried forward and applied to
12    the tax liability of the 5 taxable years following the
13    excess credit years if the taxpayer (i) makes investments
14    which cause the creation of a minimum of 2,000 full-time
15    equivalent jobs in Illinois, (ii) is located in an
16    enterprise zone established pursuant to the Illinois
17    Enterprise Zone Act and (iii) is certified by the
18    Department of Commerce and Community Affairs (now
19    Department of Commerce and Economic Opportunity) as
20    complying with the requirements specified in clause (i) and
21    (ii) by July 1, 1986. The Department of Commerce and
22    Community Affairs (now Department of Commerce and Economic
23    Opportunity) shall notify the Department of Revenue of all
24    such certifications immediately. For tax years ending
25    after December 31, 1988, the credit shall be allowed for
26    the tax year in which the property is placed in service,

 

 

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1    or, if the amount of the credit exceeds the tax liability
2    for that year, whether it exceeds the original liability or
3    the liability as later amended, such excess may be carried
4    forward and applied to the tax liability of the 5 taxable
5    years following the excess credit years. The credit shall
6    be applied to the earliest year for which there is a
7    liability. If there is credit from more than one tax year
8    that is available to offset a liability, earlier credit
9    shall be applied first.
10        (2) The term "qualified property" means property
11    which:
12            (A) is tangible, whether new or used, including
13        buildings and structural components of buildings and
14        signs that are real property, but not including land or
15        improvements to real property that are not a structural
16        component of a building such as landscaping, sewer
17        lines, local access roads, fencing, parking lots, and
18        other appurtenances;
19            (B) is depreciable pursuant to Section 167 of the
20        Internal Revenue Code, except that "3-year property"
21        as defined in Section 168(c)(2)(A) of that Code is not
22        eligible for the credit provided by this subsection
23        (e);
24            (C) is acquired by purchase as defined in Section
25        179(d) of the Internal Revenue Code;
26            (D) is used in Illinois by a taxpayer who is

 

 

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1        primarily engaged in manufacturing, or in mining coal
2        or fluorite, or in retailing, or was placed in service
3        on or after July 1, 2006 in a River Edge Redevelopment
4        Zone established pursuant to the River Edge
5        Redevelopment Zone Act; and
6            (E) has not previously been used in Illinois in
7        such a manner and by such a person as would qualify for
8        the credit provided by this subsection (e) or
9        subsection (f).
10        (3) For purposes of this subsection (e),
11    "manufacturing" means the material staging and production
12    of tangible personal property by procedures commonly
13    regarded as manufacturing, processing, fabrication, or
14    assembling which changes some existing material into new
15    shapes, new qualities, or new combinations. For purposes of
16    this subsection (e) the term "mining" shall have the same
17    meaning as the term "mining" in Section 613(c) of the
18    Internal Revenue Code. For purposes of this subsection (e),
19    the term "retailing" means the sale of tangible personal
20    property for use or consumption and not for resale, or
21    services rendered in conjunction with the sale of tangible
22    personal property for use or consumption and not for
23    resale. For purposes of this subsection (e), "tangible
24    personal property" has the same meaning as when that term
25    is used in the Retailers' Occupation Tax Act, and, for
26    taxable years ending after December 31, 2008, does not

 

 

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1    include the generation, transmission, or distribution of
2    electricity.
3        (4) The basis of qualified property shall be the basis
4    used to compute the depreciation deduction for federal
5    income tax purposes.
6        (5) If the basis of the property for federal income tax
7    depreciation purposes is increased after it has been placed
8    in service in Illinois by the taxpayer, the amount of such
9    increase shall be deemed property placed in service on the
10    date of such increase in basis.
11        (6) The term "placed in service" shall have the same
12    meaning as under Section 46 of the Internal Revenue Code.
13        (7) If during any taxable year, any property ceases to
14    be qualified property in the hands of the taxpayer within
15    48 months after being placed in service, or the situs of
16    any qualified property is moved outside Illinois within 48
17    months after being placed in service, the Personal Property
18    Tax Replacement Income Tax for such taxable year shall be
19    increased. Such increase shall be determined by (i)
20    recomputing the investment credit which would have been
21    allowed for the year in which credit for such property was
22    originally allowed by eliminating such property from such
23    computation and, (ii) subtracting such recomputed credit
24    from the amount of credit previously allowed. For the
25    purposes of this paragraph (7), a reduction of the basis of
26    qualified property resulting from a redetermination of the

 

 

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1    purchase price shall be deemed a disposition of qualified
2    property to the extent of such reduction.
3        (8) Unless the investment credit is extended by law,
4    the basis of qualified property shall not include costs
5    incurred after December 31, 2018, except for costs incurred
6    pursuant to a binding contract entered into on or before
7    December 31, 2018.
8        (9) Each taxable year ending before December 31, 2000,
9    a partnership may elect to pass through to its partners the
10    credits to which the partnership is entitled under this
11    subsection (e) for the taxable year. A partner may use the
12    credit allocated to him or her under this paragraph only
13    against the tax imposed in subsections (c) and (d) of this
14    Section. If the partnership makes that election, those
15    credits shall be allocated among the partners in the
16    partnership in accordance with the rules set forth in
17    Section 704(b) of the Internal Revenue Code, and the rules
18    promulgated under that Section, and the allocated amount of
19    the credits shall be allowed to the partners for that
20    taxable year. The partnership shall make this election on
21    its Personal Property Tax Replacement Income Tax return for
22    that taxable year. The election to pass through the credits
23    shall be irrevocable.
24        For taxable years ending on or after December 31, 2000,
25    a partner that qualifies its partnership for a subtraction
26    under subparagraph (I) of paragraph (2) of subsection (d)

 

 

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1    of Section 203 or a shareholder that qualifies a Subchapter
2    S corporation for a subtraction under subparagraph (S) of
3    paragraph (2) of subsection (b) of Section 203 shall be
4    allowed a credit under this subsection (e) equal to its
5    share of the credit earned under this subsection (e) during
6    the taxable year by the partnership or Subchapter S
7    corporation, determined in accordance with the
8    determination of income and distributive share of income
9    under Sections 702 and 704 and Subchapter S of the Internal
10    Revenue Code. This paragraph is exempt from the provisions
11    of Section 250.
12    (f) Investment credit; Enterprise Zone; River Edge
13Redevelopment Zone.
14        (1) A taxpayer shall be allowed a credit against the
15    tax imposed by subsections (a) and (b) of this Section for
16    investment in qualified property which is placed in service
17    in an Enterprise Zone created pursuant to the Illinois
18    Enterprise Zone Act or, for property placed in service on
19    or after July 1, 2006, a River Edge Redevelopment Zone
20    established pursuant to the River Edge Redevelopment Zone
21    Act. For partners, shareholders of Subchapter S
22    corporations, and owners of limited liability companies,
23    if the liability company is treated as a partnership for
24    purposes of federal and State income taxation, there shall
25    be allowed a credit under this subsection (f) to be
26    determined in accordance with the determination of income

 

 

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1    and distributive share of income under Sections 702 and 704
2    and Subchapter S of the Internal Revenue Code. The credit
3    shall be .5% of the basis for such property. The credit
4    shall be available only in the taxable year in which the
5    property is placed in service in the Enterprise Zone or
6    River Edge Redevelopment Zone and shall not be allowed to
7    the extent that it would reduce a taxpayer's liability for
8    the tax imposed by subsections (a) and (b) of this Section
9    to below zero. For tax years ending on or after December
10    31, 1985, the credit shall be allowed for the tax year in
11    which the property is placed in service, or, if the amount
12    of the credit exceeds the tax liability for that year,
13    whether it exceeds the original liability or the liability
14    as later amended, such excess may be carried forward and
15    applied to the tax liability of the 5 taxable years
16    following the excess credit year. The credit shall be
17    applied to the earliest year for which there is a
18    liability. If there is credit from more than one tax year
19    that is available to offset a liability, the credit
20    accruing first in time shall be applied first.
21        (2) The term qualified property means property which:
22            (A) is tangible, whether new or used, including
23        buildings and structural components of buildings;
24            (B) is depreciable pursuant to Section 167 of the
25        Internal Revenue Code, except that "3-year property"
26        as defined in Section 168(c)(2)(A) of that Code is not

 

 

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1        eligible for the credit provided by this subsection
2        (f);
3            (C) is acquired by purchase as defined in Section
4        179(d) of the Internal Revenue Code;
5            (D) is used in the Enterprise Zone or River Edge
6        Redevelopment Zone by the taxpayer; and
7            (E) has not been previously used in Illinois in
8        such a manner and by such a person as would qualify for
9        the credit provided by this subsection (f) or
10        subsection (e).
11        (3) The basis of qualified property shall be the basis
12    used to compute the depreciation deduction for federal
13    income tax purposes.
14        (4) If the basis of the property for federal income tax
15    depreciation purposes is increased after it has been placed
16    in service in the Enterprise Zone or River Edge
17    Redevelopment Zone by the taxpayer, the amount of such
18    increase shall be deemed property placed in service on the
19    date of such increase in basis.
20        (5) The term "placed in service" shall have the same
21    meaning as under Section 46 of the Internal Revenue Code.
22        (6) If during any taxable year, any property ceases to
23    be qualified property in the hands of the taxpayer within
24    48 months after being placed in service, or the situs of
25    any qualified property is moved outside the Enterprise Zone
26    or River Edge Redevelopment Zone within 48 months after

 

 

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1    being placed in service, the tax imposed under subsections
2    (a) and (b) of this Section for such taxable year shall be
3    increased. Such increase shall be determined by (i)
4    recomputing the investment credit which would have been
5    allowed for the year in which credit for such property was
6    originally allowed by eliminating such property from such
7    computation, and (ii) subtracting such recomputed credit
8    from the amount of credit previously allowed. For the
9    purposes of this paragraph (6), a reduction of the basis of
10    qualified property resulting from a redetermination of the
11    purchase price shall be deemed a disposition of qualified
12    property to the extent of such reduction.
13        (7) There shall be allowed an additional credit equal
14    to 0.5% of the basis of qualified property placed in
15    service during the taxable year in a River Edge
16    Redevelopment Zone, provided such property is placed in
17    service on or after July 1, 2006, and the taxpayer's base
18    employment within Illinois has increased by 1% or more over
19    the preceding year as determined by the taxpayer's
20    employment records filed with the Illinois Department of
21    Employment Security. Taxpayers who are new to Illinois
22    shall be deemed to have met the 1% growth in base
23    employment for the first year in which they file employment
24    records with the Illinois Department of Employment
25    Security. If, in any year, the increase in base employment
26    within Illinois over the preceding year is less than 1%,

 

 

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1    the additional credit shall be limited to that percentage
2    times a fraction, the numerator of which is 0.5% and the
3    denominator of which is 1%, but shall not exceed 0.5%.
4    (g) (Blank).
5    (h) Investment credit; High Impact Business.
6        (1) Subject to subsections (b) and (b-5) of Section 5.5
7    of the Illinois Enterprise Zone Act, a taxpayer shall be
8    allowed a credit against the tax imposed by subsections (a)
9    and (b) of this Section for investment in qualified
10    property which is placed in service by a Department of
11    Commerce and Economic Opportunity designated High Impact
12    Business. The credit shall be .5% of the basis for such
13    property. The credit shall not be available (i) until the
14    minimum investments in qualified property set forth in
15    subdivision (a)(3)(A) of Section 5.5 of the Illinois
16    Enterprise Zone Act have been satisfied or (ii) until the
17    time authorized in subsection (b-5) of the Illinois
18    Enterprise Zone Act for entities designated as High Impact
19    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
20    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
21    Act, and shall not be allowed to the extent that it would
22    reduce a taxpayer's liability for the tax imposed by
23    subsections (a) and (b) of this Section to below zero. The
24    credit applicable to such investments shall be taken in the
25    taxable year in which such investments have been completed.
26    The credit for additional investments beyond the minimum

 

 

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1    investment by a designated high impact business authorized
2    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
3    Enterprise Zone Act shall be available only in the taxable
4    year in which the property is placed in service and shall
5    not be allowed to the extent that it would reduce a
6    taxpayer's liability for the tax imposed by subsections (a)
7    and (b) of this Section to below zero. For tax years ending
8    on or after December 31, 1987, the credit shall be allowed
9    for the tax year in which the property is placed in
10    service, or, if the amount of the credit exceeds the tax
11    liability for that year, whether it exceeds the original
12    liability or the liability as later amended, such excess
13    may be carried forward and applied to the tax liability of
14    the 5 taxable years following the excess credit year. The
15    credit shall be applied to the earliest year for which
16    there is a liability. If there is credit from more than one
17    tax year that is available to offset a liability, the
18    credit accruing first in time shall be applied first.
19        Changes made in this subdivision (h)(1) by Public Act
20    88-670 restore changes made by Public Act 85-1182 and
21    reflect existing law.
22        (2) The term qualified property means property which:
23            (A) is tangible, whether new or used, including
24        buildings and structural components of buildings;
25            (B) is depreciable pursuant to Section 167 of the
26        Internal Revenue Code, except that "3-year property"

 

 

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1        as defined in Section 168(c)(2)(A) of that Code is not
2        eligible for the credit provided by this subsection
3        (h);
4            (C) is acquired by purchase as defined in Section
5        179(d) of the Internal Revenue Code; and
6            (D) is not eligible for the Enterprise Zone
7        Investment Credit provided by subsection (f) of this
8        Section.
9        (3) The basis of qualified property shall be the basis
10    used to compute the depreciation deduction for federal
11    income tax purposes.
12        (4) If the basis of the property for federal income tax
13    depreciation purposes is increased after it has been placed
14    in service in a federally designated Foreign Trade Zone or
15    Sub-Zone located in Illinois by the taxpayer, the amount of
16    such increase shall be deemed property placed in service on
17    the date of such increase in basis.
18        (5) The term "placed in service" shall have the same
19    meaning as under Section 46 of the Internal Revenue Code.
20        (6) If during any taxable year ending on or before
21    December 31, 1996, any property ceases to be qualified
22    property in the hands of the taxpayer within 48 months
23    after being placed in service, or the situs of any
24    qualified property is moved outside Illinois within 48
25    months after being placed in service, the tax imposed under
26    subsections (a) and (b) of this Section for such taxable

 

 

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1    year shall be increased. Such increase shall be determined
2    by (i) recomputing the investment credit which would have
3    been allowed for the year in which credit for such property
4    was originally allowed by eliminating such property from
5    such computation, and (ii) subtracting such recomputed
6    credit from the amount of credit previously allowed. For
7    the purposes of this paragraph (6), a reduction of the
8    basis of qualified property resulting from a
9    redetermination of the purchase price shall be deemed a
10    disposition of qualified property to the extent of such
11    reduction.
12        (7) Beginning with tax years ending after December 31,
13    1996, if a taxpayer qualifies for the credit under this
14    subsection (h) and thereby is granted a tax abatement and
15    the taxpayer relocates its entire facility in violation of
16    the explicit terms and length of the contract under Section
17    18-183 of the Property Tax Code, the tax imposed under
18    subsections (a) and (b) of this Section shall be increased
19    for the taxable year in which the taxpayer relocated its
20    facility by an amount equal to the amount of credit
21    received by the taxpayer under this subsection (h).
22    (i) Credit for Personal Property Tax Replacement Income
23Tax. For tax years ending prior to December 31, 2003, a credit
24shall be allowed against the tax imposed by subsections (a) and
25(b) of this Section for the tax imposed by subsections (c) and
26(d) of this Section. This credit shall be computed by

 

 

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1multiplying the tax imposed by subsections (c) and (d) of this
2Section by a fraction, the numerator of which is base income
3allocable to Illinois and the denominator of which is Illinois
4base income, and further multiplying the product by the tax
5rate imposed by subsections (a) and (b) of this Section.
6    Any credit earned on or after December 31, 1986 under this
7subsection which is unused in the year the credit is computed
8because it exceeds the tax liability imposed by subsections (a)
9and (b) for that year (whether it exceeds the original
10liability or the liability as later amended) may be carried
11forward and applied to the tax liability imposed by subsections
12(a) and (b) of the 5 taxable years following the excess credit
13year, provided that no credit may be carried forward to any
14year ending on or after December 31, 2003. This credit shall be
15applied first to the earliest year for which there is a
16liability. If there is a credit under this subsection from more
17than one tax year that is available to offset a liability the
18earliest credit arising under this subsection shall be applied
19first.
20    If, during any taxable year ending on or after December 31,
211986, the tax imposed by subsections (c) and (d) of this
22Section for which a taxpayer has claimed a credit under this
23subsection (i) is reduced, the amount of credit for such tax
24shall also be reduced. Such reduction shall be determined by
25recomputing the credit to take into account the reduced tax
26imposed by subsections (c) and (d). If any portion of the

 

 

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1reduced amount of credit has been carried to a different
2taxable year, an amended return shall be filed for such taxable
3year to reduce the amount of credit claimed.
4    (j) Training expense credit. Beginning with tax years
5ending on or after December 31, 1986 and prior to December 31,
62003, a taxpayer shall be allowed a credit against the tax
7imposed by subsections (a) and (b) under this Section for all
8amounts paid or accrued, on behalf of all persons employed by
9the taxpayer in Illinois or Illinois residents employed outside
10of Illinois by a taxpayer, for educational or vocational
11training in semi-technical or technical fields or semi-skilled
12or skilled fields, which were deducted from gross income in the
13computation of taxable income. The credit against the tax
14imposed by subsections (a) and (b) shall be 1.6% of such
15training expenses. For partners, shareholders of subchapter S
16corporations, and owners of limited liability companies, if the
17liability company is treated as a partnership for purposes of
18federal and State income taxation, there shall be allowed a
19credit under this subsection (j) to be determined in accordance
20with the determination of income and distributive share of
21income under Sections 702 and 704 and subchapter S of the
22Internal Revenue Code.
23    Any credit allowed under this subsection which is unused in
24the year the credit is earned may be carried forward to each of
25the 5 taxable years following the year for which the credit is
26first computed until it is used. This credit shall be applied

 

 

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1first to the earliest year for which there is a liability. If
2there is a credit under this subsection from more than one tax
3year that is available to offset a liability the earliest
4credit arising under this subsection shall be applied first. No
5carryforward credit may be claimed in any tax year ending on or
6after December 31, 2003.
7    (k) Research and development credit. For tax years ending
8after July 1, 1990 and prior to December 31, 2003, and
9beginning again for tax years ending on or after December 31,
102004, and ending prior to January 1, 2022, a taxpayer shall be
11allowed a credit against the tax imposed by subsections (a) and
12(b) of this Section for increasing research activities in this
13State. The credit allowed against the tax imposed by
14subsections (a) and (b) shall be equal to 6 1/2% of the
15qualifying expenditures for increasing research activities in
16this State. For partners, shareholders of subchapter S
17corporations, and owners of limited liability companies, if the
18liability company is treated as a partnership for purposes of
19federal and State income taxation, there shall be allowed a
20credit under this subsection to be determined in accordance
21with the determination of income and distributive share of
22income under Sections 702 and 704 and subchapter S of the
23Internal Revenue Code.
24    For purposes of this subsection, "qualifying expenditures"
25means the qualifying expenditures as defined for the federal
26credit for increasing research activities which would be

 

 

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1allowable under Section 41 of the Internal Revenue Code and
2which are conducted in this State, "qualifying expenditures for
3increasing research activities in this State" means the excess
4of qualifying expenditures for the taxable year in which
5incurred over qualifying expenditures for the base period,
6"qualifying expenditures for the base period" means the average
7of the qualifying expenditures for each year in the base
8period, and "base period" means the 3 taxable years immediately
9preceding the taxable year for which the determination is being
10made.
11    Any credit in excess of the tax liability for the taxable
12year may be carried forward. A taxpayer may elect to have the
13unused credit shown on its final completed return carried over
14as a credit against the tax liability for the following 5
15taxable years or until it has been fully used, whichever occurs
16first; provided that no credit earned in a tax year ending
17prior to December 31, 2003 may be carried forward to any year
18ending on or after December 31, 2003.
19    If an unused credit is carried forward to a given year from
202 or more earlier years, that credit arising in the earliest
21year will be applied first against the tax liability for the
22given year. If a tax liability for the given year still
23remains, the credit from the next earliest year will then be
24applied, and so on, until all credits have been used or no tax
25liability for the given year remains. Any remaining unused
26credit or credits then will be carried forward to the next

 

 

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1following year in which a tax liability is incurred, except
2that no credit can be carried forward to a year which is more
3than 5 years after the year in which the expense for which the
4credit is given was incurred.
5    No inference shall be drawn from this amendatory Act of the
691st General Assembly in construing this Section for taxable
7years beginning before January 1, 1999.
8    It is the intent of the General Assembly that the research
9and development credit under this subsection (k) shall apply
10continuously for all tax years ending on or after December 31,
112004 and ending prior to January 1, 2022, including, but not
12limited to, the period beginning on January 1, 2016 and ending
13on the effective date of this amendatory Act of the 100th
14General Assembly. All actions taken in reliance on the
15continuation of the credit under this subsection (k) by any
16taxpayer are hereby validated.
17    (l) Environmental Remediation Tax Credit.
18        (i) For tax years ending after December 31, 1997 and on
19    or before December 31, 2001, a taxpayer shall be allowed a
20    credit against the tax imposed by subsections (a) and (b)
21    of this Section for certain amounts paid for unreimbursed
22    eligible remediation costs, as specified in this
23    subsection. For purposes of this Section, "unreimbursed
24    eligible remediation costs" means costs approved by the
25    Illinois Environmental Protection Agency ("Agency") under
26    Section 58.14 of the Environmental Protection Act that were

 

 

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1    paid in performing environmental remediation at a site for
2    which a No Further Remediation Letter was issued by the
3    Agency and recorded under Section 58.10 of the
4    Environmental Protection Act. The credit must be claimed
5    for the taxable year in which Agency approval of the
6    eligible remediation costs is granted. The credit is not
7    available to any taxpayer if the taxpayer or any related
8    party caused or contributed to, in any material respect, a
9    release of regulated substances on, in, or under the site
10    that was identified and addressed by the remedial action
11    pursuant to the Site Remediation Program of the
12    Environmental Protection Act. After the Pollution Control
13    Board rules are adopted pursuant to the Illinois
14    Administrative Procedure Act for the administration and
15    enforcement of Section 58.9 of the Environmental
16    Protection Act, determinations as to credit availability
17    for purposes of this Section shall be made consistent with
18    those rules. For purposes of this Section, "taxpayer"
19    includes a person whose tax attributes the taxpayer has
20    succeeded to under Section 381 of the Internal Revenue Code
21    and "related party" includes the persons disallowed a
22    deduction for losses by paragraphs (b), (c), and (f)(1) of
23    Section 267 of the Internal Revenue Code by virtue of being
24    a related taxpayer, as well as any of its partners. The
25    credit allowed against the tax imposed by subsections (a)
26    and (b) shall be equal to 25% of the unreimbursed eligible

 

 

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1    remediation costs in excess of $100,000 per site, except
2    that the $100,000 threshold shall not apply to any site
3    contained in an enterprise zone as determined by the
4    Department of Commerce and Community Affairs (now
5    Department of Commerce and Economic Opportunity). The
6    total credit allowed shall not exceed $40,000 per year with
7    a maximum total of $150,000 per site. For partners and
8    shareholders of subchapter S corporations, there shall be
9    allowed a credit under this subsection to be determined in
10    accordance with the determination of income and
11    distributive share of income under Sections 702 and 704 and
12    subchapter S of the Internal Revenue Code.
13        (ii) A credit allowed under this subsection that is
14    unused in the year the credit is earned may be carried
15    forward to each of the 5 taxable years following the year
16    for which the credit is first earned until it is used. The
17    term "unused credit" does not include any amounts of
18    unreimbursed eligible remediation costs in excess of the
19    maximum credit per site authorized under paragraph (i).
20    This credit shall be applied first to the earliest year for
21    which there is a liability. If there is a credit under this
22    subsection from more than one tax year that is available to
23    offset a liability, the earliest credit arising under this
24    subsection shall be applied first. A credit allowed under
25    this subsection may be sold to a buyer as part of a sale of
26    all or part of the remediation site for which the credit

 

 

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1    was granted. The purchaser of a remediation site and the
2    tax credit shall succeed to the unused credit and remaining
3    carry-forward period of the seller. To perfect the
4    transfer, the assignor shall record the transfer in the
5    chain of title for the site and provide written notice to
6    the Director of the Illinois Department of Revenue of the
7    assignor's intent to sell the remediation site and the
8    amount of the tax credit to be transferred as a portion of
9    the sale. In no event may a credit be transferred to any
10    taxpayer if the taxpayer or a related party would not be
11    eligible under the provisions of subsection (i).
12        (iii) For purposes of this Section, the term "site"
13    shall have the same meaning as under Section 58.2 of the
14    Environmental Protection Act.
15    (m) Education expense credit. Beginning with tax years
16ending after December 31, 1999, a taxpayer who is the custodian
17of one or more qualifying pupils shall be allowed a credit
18against the tax imposed by subsections (a) and (b) of this
19Section for qualified education expenses incurred on behalf of
20the qualifying pupils. The credit shall be equal to 25% of
21qualified education expenses, but in no event may the total
22credit under this subsection claimed by a family that is the
23custodian of qualifying pupils exceed (i) $500 for tax years
24ending prior to December 31, 2017, and (ii) $750 for tax years
25ending on or after December 31, 2017. In no event shall a
26credit under this subsection reduce the taxpayer's liability

 

 

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1under this Act to less than zero. Notwithstanding any other
2provision of law, for taxable years beginning on or after
3January 1, 2017, no taxpayer may claim a credit under this
4subsection (m) if the taxpayer's adjusted gross income for the
5taxable year exceeds (i) $500,000, in the case of spouses
6filing a joint federal tax return or (ii) $250,000, in the case
7of all other taxpayers. This subsection is exempt from the
8provisions of Section 250 of this Act.
9    For purposes of this subsection:
10    "Qualifying pupils" means individuals who (i) are
11residents of the State of Illinois, (ii) are under the age of
1221 at the close of the school year for which a credit is
13sought, and (iii) during the school year for which a credit is
14sought were full-time pupils enrolled in a kindergarten through
15twelfth grade education program at any school, as defined in
16this subsection.
17    "Qualified education expense" means the amount incurred on
18behalf of a qualifying pupil in excess of $250 for tuition,
19book fees, and lab fees at the school in which the pupil is
20enrolled during the regular school year.
21    "School" means any public or nonpublic elementary or
22secondary school in Illinois that is in compliance with Title
23VI of the Civil Rights Act of 1964 and attendance at which
24satisfies the requirements of Section 26-1 of the School Code,
25except that nothing shall be construed to require a child to
26attend any particular public or nonpublic school to qualify for

 

 

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1the credit under this Section.
2    "Custodian" means, with respect to qualifying pupils, an
3Illinois resident who is a parent, the parents, a legal
4guardian, or the legal guardians of the qualifying pupils.
5    (n) River Edge Redevelopment Zone site remediation tax
6credit.
7        (i) For tax years ending on or after December 31, 2006,
8    a taxpayer shall be allowed a credit against the tax
9    imposed by subsections (a) and (b) of this Section for
10    certain amounts paid for unreimbursed eligible remediation
11    costs, as specified in this subsection. For purposes of
12    this Section, "unreimbursed eligible remediation costs"
13    means costs approved by the Illinois Environmental
14    Protection Agency ("Agency") under Section 58.14a of the
15    Environmental Protection Act that were paid in performing
16    environmental remediation at a site within a River Edge
17    Redevelopment Zone for which a No Further Remediation
18    Letter was issued by the Agency and recorded under Section
19    58.10 of the Environmental Protection Act. The credit must
20    be claimed for the taxable year in which Agency approval of
21    the eligible remediation costs is granted. The credit is
22    not available to any taxpayer if the taxpayer or any
23    related party caused or contributed to, in any material
24    respect, a release of regulated substances on, in, or under
25    the site that was identified and addressed by the remedial
26    action pursuant to the Site Remediation Program of the

 

 

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1    Environmental Protection Act. Determinations as to credit
2    availability for purposes of this Section shall be made
3    consistent with rules adopted by the Pollution Control
4    Board pursuant to the Illinois Administrative Procedure
5    Act for the administration and enforcement of Section 58.9
6    of the Environmental Protection Act. For purposes of this
7    Section, "taxpayer" includes a person whose tax attributes
8    the taxpayer has succeeded to under Section 381 of the
9    Internal Revenue Code and "related party" includes the
10    persons disallowed a deduction for losses by paragraphs
11    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
12    Code by virtue of being a related taxpayer, as well as any
13    of its partners. The credit allowed against the tax imposed
14    by subsections (a) and (b) shall be equal to 25% of the
15    unreimbursed eligible remediation costs in excess of
16    $100,000 per site.
17        (ii) A credit allowed under this subsection that is
18    unused in the year the credit is earned may be carried
19    forward to each of the 5 taxable years following the year
20    for which the credit is first earned until it is used. This
21    credit shall be applied first to the earliest year for
22    which there is a liability. If there is a credit under this
23    subsection from more than one tax year that is available to
24    offset a liability, the earliest credit arising under this
25    subsection shall be applied first. A credit allowed under
26    this subsection may be sold to a buyer as part of a sale of

 

 

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1    all or part of the remediation site for which the credit
2    was granted. The purchaser of a remediation site and the
3    tax credit shall succeed to the unused credit and remaining
4    carry-forward period of the seller. To perfect the
5    transfer, the assignor shall record the transfer in the
6    chain of title for the site and provide written notice to
7    the Director of the Illinois Department of Revenue of the
8    assignor's intent to sell the remediation site and the
9    amount of the tax credit to be transferred as a portion of
10    the sale. In no event may a credit be transferred to any
11    taxpayer if the taxpayer or a related party would not be
12    eligible under the provisions of subsection (i).
13        (iii) For purposes of this Section, the term "site"
14    shall have the same meaning as under Section 58.2 of the
15    Environmental Protection Act.
16    (o) For each of taxable years during the Compassionate Use
17of Medical Cannabis Pilot Program, a surcharge is imposed on
18all taxpayers on income arising from the sale or exchange of
19capital assets, depreciable business property, real property
20used in the trade or business, and Section 197 intangibles of
21an organization registrant under the Compassionate Use of
22Medical Cannabis Pilot Program Act. The amount of the surcharge
23is equal to the amount of federal income tax liability for the
24taxable year attributable to those sales and exchanges. The
25surcharge imposed does not apply if:
26        (1) the medical cannabis cultivation center

 

 

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1    registration, medical cannabis dispensary registration, or
2    the property of a registration is transferred as a result
3    of any of the following:
4            (A) bankruptcy, a receivership, or a debt
5        adjustment initiated by or against the initial
6        registration or the substantial owners of the initial
7        registration;
8            (B) cancellation, revocation, or termination of
9        any registration by the Illinois Department of Public
10        Health;
11            (C) a determination by the Illinois Department of
12        Public Health that transfer of the registration is in
13        the best interests of Illinois qualifying patients as
14        defined by the Compassionate Use of Medical Cannabis
15        Pilot Program Act;
16            (D) the death of an owner of the equity interest in
17        a registrant;
18            (E) the acquisition of a controlling interest in
19        the stock or substantially all of the assets of a
20        publicly traded company;
21            (F) a transfer by a parent company to a wholly
22        owned subsidiary; or
23            (G) the transfer or sale to or by one person to
24        another person where both persons were initial owners
25        of the registration when the registration was issued;
26        or

 

 

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1        (2) the cannabis cultivation center registration,
2    medical cannabis dispensary registration, or the
3    controlling interest in a registrant's property is
4    transferred in a transaction to lineal descendants in which
5    no gain or loss is recognized or as a result of a
6    transaction in accordance with Section 351 of the Internal
7    Revenue Code in which no gain or loss is recognized.
8(Source: P.A. 100-22, eff. 7-6-17.)
 
9    (35 ILCS 5/201.1 new)
10    Sec. 201.1. Tax rates. In the case of an individual, trust,
11or estate, for taxable years beginning on or after January 1,
122021, the amount of the tax imposed by subsection (a) of
13Section 201 of this Act shall be determined according to the
14following tax rate structure:
15        (1) for taxpayers who do not file a joint return and
16    have a net income of $750,000 or less:
17            (A) 4.75% of the portion of the taxpayer's net
18        income that does not exceed $10,000;
19            (B) 4.9% of the portion of the taxpayer's net
20        income that exceeds $10,000 but does not exceed
21        $100,000;
22            (C) 4.95% of the portion of the taxpayer's net
23        income that exceeds $100,000 but does not exceed
24        $250,000;
25            (D) 7.75% of the portion of the taxpayer's net

 

 

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1        income that exceeds $250,000 but does not exceed
2        $350,000; and
3            (E) 7.85% of the portion of the taxpayer's net
4        income that exceeds $350,000 but does not exceed
5        $750,000; and
6        (2) for taxpayers who do not file a joint return and
7    have a net income that exceeds $750,000, 7.99% of the
8    taxpayer's net income;
9        (3) for taxpayers who file a joint return and have a
10    net income of $1,000,000 or less:
11            (A) 4.75% of the portion of the taxpayer's net
12        income that does not exceed $10,000;
13            (B) 4.9% of the portion of the taxpayer's net
14        income that exceeds $10,000 but does not exceed
15        $100,000;
16            (C) 4.95% of the portion of the taxpayer's net
17        income that exceeds $100,000 but does not exceed
18        $250,000;
19            (D) 7.75% of the portion of the taxpayer's net
20        income that exceeds $250,000 but does not exceed
21        $500,000; and
22            (E) 7.85% of the portion of the taxpayer's net
23        income that exceeds $500,000 but does not exceed
24        $1,000,000; and
25        (4) for taxpayers who file a joint return and have a
26    net income of more than $1,000,000, 7.99% of the taxpayer's

 

 

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1    net income.
 
2    (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
3    Sec. 208. Tax credit for residential real property taxes.
4For Beginning with tax years ending on or after December 31,
51991 and ending prior to December 31, 2021, every individual
6taxpayer shall be entitled to a tax credit equal to 5% of real
7property taxes paid by such taxpayer during the taxable year on
8the principal residence of the taxpayer. For tax years ending
9on or after December 31, 2021, every individual taxpayer shall
10be entitled to a tax credit equal to 6% of real property taxes
11paid by such taxpayer during the taxable year on the principal
12residence of the taxpayer. In the case of multi-unit or
13multi-use structures and farm dwellings, the taxes on the
14taxpayer's principal residence shall be that portion of the
15total taxes which is attributable to such principal residence.
16Notwithstanding any other provision of law, for taxable years
17beginning on or after January 1, 2017, no taxpayer may claim a
18credit under this Section if the taxpayer's adjusted gross
19income for the taxable year exceeds (i) $500,000, in the case
20of spouses filing a joint federal tax return, or (ii) $250,000,
21in the case of all other taxpayers. This Section is exempt from
22the provisions of Section 250.
23(Source: P.A. 100-22, eff. 7-6-17.)
 
24    (35 ILCS 5/229 new)

 

 

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1    Sec. 229. Child tax credit.
2    (a) For taxable years beginning on or after January 1,
32021, there shall be allowed as a credit against the tax
4imposed by Section 201 for the taxable year with respect to
5each child of the taxpayer who is under the age of 17 and for
6whom the taxpayer is allowed an additional exemption under
7Section 204 an amount equal to $100.
8    (b) The amount of the credit allowed under subsection (a)
9shall be reduced by $5 for each $2,000 by which the taxpayer's
10net income exceeds $60,000 in the case of a joint return or
11exceeds $40,000 in the case of any other form of return.
12    (c) In no event shall a credit under this Section reduce
13the taxpayer's liability to less than zero.
14    (d) This Section is exempt from the provisions of Section
15250.
 
16    (35 ILCS 5/502)  (from Ch. 120, par. 5-502)
17    Sec. 502. Returns and notices.
18    (a) In general. A return with respect to the taxes imposed
19by this Act shall be made by every person for any taxable year:
20        (1) for which such person is liable for a tax imposed
21    by this Act, or
22        (2) in the case of a resident or in the case of a
23    corporation which is qualified to do business in this
24    State, for which such person is required to make a federal
25    income tax return, regardless of whether such person is

 

 

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1    liable for a tax imposed by this Act. However, this
2    paragraph shall not require a resident to make a return if
3    such person has an Illinois base income of the basic amount
4    in Section 204(b) or less and is either claimed as a
5    dependent on another person's tax return under the Internal
6    Revenue Code, or is claimed as a dependent on another
7    person's tax return under this Act.
8    Notwithstanding the provisions of paragraph (1), a
9nonresident (other than, for taxable years ending on or after
10December 31, 2011, a nonresident required to withhold tax under
11Section 709.5) whose Illinois income tax liability under
12subsections (a), (b), (c), and (d) of Section 201 of this Act
13is paid in full after taking into account the credits allowed
14under subsection (f) of this Section or allowed under Section
15709.5 of this Act shall not be required to file a return under
16this subsection (a).
17    (b) Fiduciaries and receivers.
18        (1) Decedents. If an individual is deceased, any return
19    or notice required of such individual under this Act shall
20    be made by his executor, administrator, or other person
21    charged with the property of such decedent.
22        (2) Individuals under a disability. If an individual is
23    unable to make a return or notice required under this Act,
24    the return or notice required of such individual shall be
25    made by his duly authorized agent, guardian, fiduciary or
26    other person charged with the care of the person or

 

 

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1    property of such individual.
2        (3) Estates and trusts. Returns or notices required of
3    an estate or a trust shall be made by the fiduciary
4    thereof.
5        (4) Receivers, trustees and assignees for
6    corporations. In a case where a receiver, trustee in
7    bankruptcy, or assignee, by order of a court of competent
8    jurisdiction, by operation of law, or otherwise, has
9    possession of or holds title to all or substantially all
10    the property or business of a corporation, whether or not
11    such property or business is being operated, such receiver,
12    trustee, or assignee shall make the returns and notices
13    required of such corporation in the same manner and form as
14    corporations are required to make such returns and notices.
15    (c) Joint returns by spouses husband and wife.
16        (1) Except as provided in paragraph (3):
17            (A) if spouses a husband and wife file a joint
18        federal income tax return for a taxable year ending
19        before December 31, 2009 or ending on or after December
20        31, 2021, they shall file a joint return under this Act
21        for such taxable year and their liabilities shall be
22        joint and several;
23            (B) if spouses a husband and wife file a joint
24        federal income tax return for a taxable year ending on
25        or after December 31, 2009 and ending prior to December
26        31, 2021, they may elect to file separate returns under

 

 

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1        this Act for such taxable year. The election under this
2        paragraph must be made on or before the due date
3        (including extensions) of the return and, once made,
4        shall be irrevocable. If no election is timely made
5        under this paragraph for a taxable year:
6                (i) the couple must file a joint return under
7            this Act for such taxable year,
8                (ii) their liabilities shall be joint and
9            several, and
10                (iii) any overpayment for that taxable year
11            may be withheld under Section 909 of this Act or
12            under Section 2505-275 of the Civil Administrative
13            Code of Illinois and applied against a debt of
14            either spouse without regard to the amount of the
15            overpayment attributable to the other spouse; and
16            (C) if the federal income tax liability of either
17        spouse is determined on a separate federal income tax
18        return, they shall file separate returns under this
19        Act.
20        (2) If neither spouse is required to file a federal
21    income tax return and either or both are required to file a
22    return under this Act, they may elect to file separate or
23    joint returns and pursuant to such election their
24    liabilities shall be separate or joint and several.
25        (3) If either spouse husband or wife is a resident and
26    the other is a nonresident, they shall file separate

 

 

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1    returns in this State on such forms as may be required by
2    the Department in which event their tax liabilities shall
3    be separate; but if, for taxable years ending prior to
4    December 31, 2021, they file a joint federal income tax
5    return for a taxable year, they may elect to determine
6    their joint net income and file a joint return for that
7    taxable year under the provisions of paragraph (1) of this
8    subsection as if both were residents and in such case,
9    their liabilities shall be joint and several. For taxable
10    years ending on or after December 31, 2021, if such spouses
11    file a joint federal income tax return for a taxable year,
12    they shall determine their joint net income and file a
13    joint return for that taxable year under the provisions of
14    paragraph (1) of this subsection as if both were residents,
15    and, in such case, their liabilities shall be joint and
16    several.
17        (4) Innocent spouses.
18            (A) However, for tax liabilities arising and paid
19        prior to August 13, 1999, an innocent spouse shall be
20        relieved of liability for tax (including interest and
21        penalties) for any taxable year for which a joint
22        return has been made, upon submission of proof that the
23        Internal Revenue Service has made a determination
24        under Section 6013(e) of the Internal Revenue Code, for
25        the same taxable year, which determination relieved
26        the spouse from liability for federal income taxes. If

 

 

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1        there is no federal income tax liability at issue for
2        the same taxable year, the Department shall rely on the
3        provisions of Section 6013(e) to determine whether the
4        person requesting innocent spouse abatement of tax,
5        penalty, and interest is entitled to that relief.
6            (B) For tax liabilities arising on and after August
7        13, 1999 or which arose prior to that date, but remain
8        unpaid as of that date, if an individual who filed a
9        joint return for any taxable year has made an election
10        under this paragraph, the individual's liability for
11        any tax shown on the joint return shall not exceed the
12        individual's separate return amount and the
13        individual's liability for any deficiency assessed for
14        that taxable year shall not exceed the portion of the
15        deficiency properly allocable to the individual. For
16        purposes of this paragraph:
17                (i) An election properly made pursuant to
18            Section 6015 of the Internal Revenue Code shall
19            constitute an election under this paragraph,
20            provided that the election shall not be effective
21            until the individual has notified the Department
22            of the election in the form and manner prescribed
23            by the Department.
24                (ii) If no election has been made under Section
25            6015, the individual may make an election under
26            this paragraph in the form and manner prescribed by

 

 

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1            the Department, provided that no election may be
2            made if the Department finds that assets were
3            transferred between individuals filing a joint
4            return as part of a scheme by such individuals to
5            avoid payment of Illinois income tax and the
6            election shall not eliminate the individual's
7            liability for any portion of a deficiency
8            attributable to an error on the return of which the
9            individual had actual knowledge as of the date of
10            filing.
11                (iii) In determining the separate return
12            amount or portion of any deficiency attributable
13            to an individual, the Department shall follow the
14            provisions in subsections (c) and (d) of Section
15            6015 of the Internal Revenue Code.
16                (iv) In determining the validity of an
17            individual's election under subparagraph (ii) and
18            in determining an electing individual's separate
19            return amount or portion of any deficiency under
20            subparagraph (iii), any determination made by the
21            Secretary of the Treasury, by the United States Tax
22            Court on petition for review of a determination by
23            the Secretary of the Treasury, or on appeal from
24            the United States Tax Court under Section 6015 of
25            the Internal Revenue Code regarding criteria for
26            eligibility or under subsection (d) of Section

 

 

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1            6015 of the Internal Revenue Code regarding the
2            allocation of any item of income, deduction,
3            payment, or credit between an individual making
4            the federal election and that individual's spouse
5            shall be conclusively presumed to be correct. With
6            respect to any item that is not the subject of a
7            determination by the Secretary of the Treasury or
8            the federal courts, in any proceeding involving
9            this subsection, the individual making the
10            election shall have the burden of proof with
11            respect to any item except that the Department
12            shall have the burden of proof with respect to
13            items in subdivision (ii).
14                (v) Any election made by an individual under
15            this subsection shall apply to all years for which
16            that individual and the spouse named in the
17            election have filed a joint return.
18                (vi) After receiving a notice that the federal
19            election has been made or after receiving an
20            election under subdivision (ii), the Department
21            shall take no collection action against the
22            electing individual for any liability arising from
23            a joint return covered by the election until the
24            Department has notified the electing individual in
25            writing that the election is invalid or of the
26            portion of the liability the Department has

 

 

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1            allocated to the electing individual. Within 60
2            days (150 days if the individual is outside the
3            United States) after the issuance of such
4            notification, the individual may file a written
5            protest of the denial of the election or of the
6            Department's determination of the liability
7            allocated to him or her and shall be granted a
8            hearing within the Department under the provisions
9            of Section 908. If a protest is filed, the
10            Department shall take no collection action against
11            the electing individual until the decision
12            regarding the protest has become final under
13            subsection (d) of Section 908 or, if
14            administrative review of the Department's decision
15            is requested under Section 1201, until the
16            decision of the court becomes final.
17    (d) Partnerships. Every partnership having any base income
18allocable to this State in accordance with section 305(c) shall
19retain information concerning all items of income, gain, loss
20and deduction; the names and addresses of all of the partners,
21or names and addresses of members of a limited liability
22company, or other persons who would be entitled to share in the
23base income of the partnership if distributed; the amount of
24the distributive share of each; and such other pertinent
25information as the Department may by forms or regulations
26prescribe. The partnership shall make that information

 

 

10100SB0687sam001- 48 -LRB101 04448 HLH 60053 a

1available to the Department when requested by the Department.
2    (e) For taxable years ending on or after December 31, 1985,
3and before December 31, 1993, taxpayers that are corporations
4(other than Subchapter S corporations) having the same taxable
5year and that are members of the same unitary business group
6may elect to be treated as one taxpayer for purposes of any
7original return, amended return which includes the same
8taxpayers of the unitary group which joined in the election to
9file the original return, extension, claim for refund,
10assessment, collection and payment and determination of the
11group's tax liability under this Act. This subsection (e) does
12not permit the election to be made for some, but not all, of
13the purposes enumerated above. For taxable years ending on or
14after December 31, 1987, corporate members (other than
15Subchapter S corporations) of the same unitary business group
16making this subsection (e) election are not required to have
17the same taxable year.
18    For taxable years ending on or after December 31, 1993,
19taxpayers that are corporations (other than Subchapter S
20corporations) and that are members of the same unitary business
21group shall be treated as one taxpayer for purposes of any
22original return, amended return which includes the same
23taxpayers of the unitary group which joined in filing the
24original return, extension, claim for refund, assessment,
25collection and payment and determination of the group's tax
26liability under this Act.

 

 

10100SB0687sam001- 49 -LRB101 04448 HLH 60053 a

1    (f) For taxable years ending prior to December 31, 2014,
2the Department may promulgate regulations to permit
3nonresident individual partners of the same partnership,
4nonresident Subchapter S corporation shareholders of the same
5Subchapter S corporation, and nonresident individuals
6transacting an insurance business in Illinois under a Lloyds
7plan of operation, and nonresident individual members of the
8same limited liability company that is treated as a partnership
9under Section 1501 (a)(16) of this Act, to file composite
10individual income tax returns reflecting the composite income
11of such individuals allocable to Illinois and to make composite
12individual income tax payments. For taxable years ending prior
13to December 31, 2014, the Department may by regulation also
14permit such composite returns to include the income tax owed by
15Illinois residents attributable to their income from
16partnerships, Subchapter S corporations, insurance businesses
17organized under a Lloyds plan of operation, or limited
18liability companies that are treated as partnership under
19Section 1501(a)(16) of this Act, in which case such Illinois
20residents will be permitted to claim credits on their
21individual returns for their shares of the composite tax
22payments. This paragraph of subsection (f) applies to taxable
23years ending on or after December 31, 1987 and ending prior to
24December 31, 2014.
25    For taxable years ending on or after December 31, 1999, the
26Department may, by regulation, permit any persons transacting

 

 

10100SB0687sam001- 50 -LRB101 04448 HLH 60053 a

1an insurance business organized under a Lloyds plan of
2operation to file composite returns reflecting the income of
3such persons allocable to Illinois and the tax rates applicable
4to such persons under Section 201 and to make composite tax
5payments and shall, by regulation, also provide that the income
6and apportionment factors attributable to the transaction of an
7insurance business organized under a Lloyds plan of operation
8by any person joining in the filing of a composite return
9shall, for purposes of allocating and apportioning income under
10Article 3 of this Act and computing net income under Section
11202 of this Act, be excluded from any other income and
12apportionment factors of that person or of any unitary business
13group, as defined in subdivision (a)(27) of Section 1501, to
14which that person may belong.
15    For taxable years ending on or after December 31, 2008,
16every nonresident shall be allowed a credit against his or her
17liability under subsections (a) and (b) of Section 201 for any
18amount of tax reported on a composite return and paid on his or
19her behalf under this subsection (f). Residents (other than
20persons transacting an insurance business organized under a
21Lloyds plan of operation) may claim a credit for taxes reported
22on a composite return and paid on their behalf under this
23subsection (f) only as permitted by the Department by rule.
24    (f-5) For taxable years ending on or after December 31,
252008, the Department may adopt rules to provide that, when a
26partnership or Subchapter S corporation has made an error in

 

 

10100SB0687sam001- 51 -LRB101 04448 HLH 60053 a

1determining the amount of any item of income, deduction,
2addition, subtraction, or credit required to be reported on its
3return that affects the liability imposed under this Act on a
4partner or shareholder, the partnership or Subchapter S
5corporation may report the changes in liabilities of its
6partners or shareholders and claim a refund of the resulting
7overpayments, or pay the resulting underpayments, on behalf of
8its partners and shareholders.
9    (g) The Department may adopt rules to authorize the
10electronic filing of any return required to be filed under this
11Section.
12(Source: P.A. 97-507, eff. 8-23-11; 98-478, eff. 1-1-14.)
 
13    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
14    Sec. 901. Collection authority.
15    (a) In general. The Department shall collect the taxes
16imposed by this Act. The Department shall collect certified
17past due child support amounts under Section 2505-650 of the
18Department of Revenue Law of the Civil Administrative Code of
19Illinois. Except as provided in subsections (b), (c), (e), (f),
20(g), and (h) of this Section, money collected pursuant to
21subsections (a) and (b) of Section 201 of this Act shall be
22paid into the General Revenue Fund in the State treasury; money
23collected pursuant to subsections (c) and (d) of Section 201 of
24this Act shall be paid into the Personal Property Tax
25Replacement Fund, a special fund in the State Treasury; and

 

 

10100SB0687sam001- 52 -LRB101 04448 HLH 60053 a

1money collected under Section 2505-650 of the Department of
2Revenue Law of the Civil Administrative Code of Illinois shall
3be paid into the Child Support Enforcement Trust Fund, a
4special fund outside the State Treasury, or to the State
5Disbursement Unit established under Section 10-26 of the
6Illinois Public Aid Code, as directed by the Department of
7Healthcare and Family Services.
8    (b) Local Government Distributive Fund. Beginning August
91, 1969, and continuing through June 30, 1994, the Treasurer
10shall transfer each month from the General Revenue Fund to a
11special fund in the State treasury, to be known as the "Local
12Government Distributive Fund", an amount equal to 1/12 of the
13net revenue realized from the tax imposed by subsections (a)
14and (b) of Section 201 of this Act during the preceding month.
15Beginning July 1, 1994, and continuing through June 30, 1995,
16the Treasurer shall transfer each month from the General
17Revenue Fund to the Local Government Distributive Fund an
18amount equal to 1/11 of the net revenue realized from the tax
19imposed by subsections (a) and (b) of Section 201 of this Act
20during the preceding month. Beginning July 1, 1995 and
21continuing through January 31, 2011, the Treasurer shall
22transfer each month from the General Revenue Fund to the Local
23Government Distributive Fund an amount equal to the net of (i)
241/10 of the net revenue realized from the tax imposed by
25subsections (a) and (b) of Section 201 of the Illinois Income
26Tax Act during the preceding month (ii) minus, beginning July

 

 

10100SB0687sam001- 53 -LRB101 04448 HLH 60053 a

11, 2003 and ending June 30, 2004, $6,666,666, and beginning
2July 1, 2004, zero. Beginning February 1, 2011, and continuing
3through January 31, 2015, the Treasurer shall transfer each
4month from the General Revenue Fund to the Local Government
5Distributive Fund an amount equal to the sum of (i) 6% (10% of
6the ratio of the 3% individual income tax rate prior to 2011 to
7the 5% individual income tax rate after 2010) of the net
8revenue realized from the tax imposed by subsections (a) and
9(b) of Section 201 of this Act upon individuals, trusts, and
10estates during the preceding month and (ii) 6.86% (10% of the
11ratio of the 4.8% corporate income tax rate prior to 2011 to
12the 7% corporate income tax rate after 2010) of the net revenue
13realized from the tax imposed by subsections (a) and (b) of
14Section 201 of this Act upon corporations during the preceding
15month. Beginning February 1, 2015 and continuing through July
1631, 2017, the Treasurer shall transfer each month from the
17General Revenue Fund to the Local Government Distributive Fund
18an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
19individual income tax rate prior to 2011 to the 3.75%
20individual income tax rate after 2014) of the net revenue
21realized from the tax imposed by subsections (a) and (b) of
22Section 201 of this Act upon individuals, trusts, and estates
23during the preceding month and (ii) 9.14% (10% of the ratio of
24the 4.8% corporate income tax rate prior to 2011 to the 5.25%
25corporate income tax rate after 2014) of the net revenue
26realized from the tax imposed by subsections (a) and (b) of

 

 

10100SB0687sam001- 54 -LRB101 04448 HLH 60053 a

1Section 201 of this Act upon corporations during the preceding
2month. Beginning August 1, 2017 and continuing through January
331, 2021, the Treasurer shall transfer each month from the
4General Revenue Fund to the Local Government Distributive Fund
5an amount equal to the sum of (i) 6.06% (10% of the ratio of the
63% individual income tax rate prior to 2011 to the 4.95%
7individual income tax rate after July 1, 2017) of the net
8revenue realized from the tax imposed by subsections (a) and
9(b) of Section 201 of this Act upon individuals, trusts, and
10estates during the preceding month and (ii) 6.85% (10% of the
11ratio of the 4.8% corporate income tax rate prior to 2011 to
12the 7% corporate income tax rate after July 1, 2017) of the net
13revenue realized from the tax imposed by subsections (a) and
14(b) of Section 201 of this Act upon corporations during the
15preceding month. Beginning on February 1, 2021, the Treasurer
16shall transfer each month from the General Revenue Fund to the
17Local Government Distributive Fund an amount equal to 10.75% of
18the amount that would have been generated under subsections (a)
19and (b) of Section 201 if the taxes had been imposed at the
20rate of 3% for individuals, trusts, and estates and at the rate
21of 4.8% for corporations. Net revenue realized for a month
22shall be defined as the revenue from the tax imposed by
23subsections (a) and (b) of Section 201 of this Act which is
24deposited in the General Revenue Fund, the Education Assistance
25Fund, the Income Tax Surcharge Local Government Distributive
26Fund, the Fund for the Advancement of Education, and the

 

 

10100SB0687sam001- 55 -LRB101 04448 HLH 60053 a

1Commitment to Human Services Fund during the month minus the
2amount paid out of the General Revenue Fund in State warrants
3during that same month as refunds to taxpayers for overpayment
4of liability under the tax imposed by subsections (a) and (b)
5of Section 201 of this Act.
6    Notwithstanding any provision of law to the contrary,
7beginning on July 6, 2017 (the effective date of Public Act
8100-23), those amounts required under this subsection (b) to be
9transferred by the Treasurer into the Local Government
10Distributive Fund from the General Revenue Fund shall be
11directly deposited into the Local Government Distributive Fund
12as the revenue is realized from the tax imposed by subsections
13(a) and (b) of Section 201 of this Act.
14    For State fiscal year 2018 only, notwithstanding any
15provision of law to the contrary, the total amount of revenue
16and deposits under this Section attributable to revenues
17realized during State fiscal year 2018 shall be reduced by 10%.
18    For State fiscal year 2019 only, notwithstanding any
19provision of law to the contrary, the total amount of revenue
20and deposits under this Section attributable to revenues
21realized during State fiscal year 2019 shall be reduced by 5%.
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) of Section 201 of this Act into a fund in the State

 

 

10100SB0687sam001- 56 -LRB101 04448 HLH 60053 a

1    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 Public Act 93-839 (July 30, 2004), the Annual Percentage
12    shall be 10% for fiscal year 2005. For fiscal year 2006,
13    the Annual Percentage shall be 9.75%. For fiscal year 2007,
14    the Annual Percentage shall be 9.75%. For fiscal year 2008,
15    the Annual Percentage shall be 7.75%. For fiscal year 2009,
16    the Annual Percentage shall be 9.75%. For fiscal year 2010,
17    the Annual Percentage shall be 9.75%. For fiscal year 2011,
18    the Annual Percentage shall be 8.75%. For fiscal year 2012,
19    the Annual Percentage shall be 8.75%. For fiscal year 2013,
20    the Annual Percentage shall be 9.75%. For fiscal year 2014,
21    the Annual Percentage shall be 9.5%. For fiscal year 2015,
22    the Annual Percentage shall be 10%. For fiscal year 2018,
23    the Annual Percentage shall be 9.8%. For fiscal year 2019,
24    the Annual Percentage shall be 9.7%. For all other fiscal
25    years, the Annual Percentage shall be calculated as a
26    fraction, the numerator of which shall be the amount of

 

 

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1    refunds approved for payment by the Department during the
2    preceding fiscal year as a result of overpayment of tax
3    liability under subsections (a) and (b)(1), (2), and (3) of
4    Section 201 of this Act plus the amount of such refunds
5    remaining approved but unpaid at the end of the preceding
6    fiscal year, minus the amounts transferred into the Income
7    Tax Refund Fund from the Tobacco Settlement Recovery Fund,
8    and the denominator of which shall be the amounts which
9    will be collected pursuant to subsections (a) and (b)(1),
10    (2), and (3) of Section 201 of this Act during the
11    preceding fiscal year; except that in State fiscal year
12    2002, the Annual Percentage shall in no event exceed 7.6%.
13    The Director of Revenue shall certify the Annual Percentage
14    to the Comptroller on the last business day of the fiscal
15    year immediately preceding the fiscal year for which it is
16    to be effective.
17        (2) Beginning on January 1, 1989 and thereafter, the
18    Department shall deposit a percentage of the amounts
19    collected pursuant to subsections (a) and (b)(6), (7), and
20    (8), (c) and (d) of Section 201 of this Act into a fund in
21    the State treasury known as the Income Tax Refund Fund. The
22    Department shall deposit 18% of such amounts during the
23    period beginning January 1, 1989 and ending on June 30,
24    1989. Beginning with State fiscal year 1990 and for each
25    fiscal year thereafter, the percentage deposited into the
26    Income Tax Refund Fund during a fiscal year shall be the

 

 

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1    Annual Percentage. For fiscal years 1999, 2000, and 2001,
2    the Annual Percentage shall be 19%. For fiscal year 2003,
3    the Annual Percentage shall be 27%. For fiscal year 2004,
4    the Annual Percentage shall be 32%. Upon the effective date
5    of Public Act 93-839 (July 30, 2004), the Annual Percentage
6    shall be 24% for fiscal year 2005. For fiscal year 2006,
7    the Annual Percentage shall be 20%. For fiscal year 2007,
8    the Annual Percentage shall be 17.5%. For fiscal year 2008,
9    the Annual Percentage shall be 15.5%. For fiscal year 2009,
10    the Annual Percentage shall be 17.5%. For fiscal year 2010,
11    the Annual Percentage shall be 17.5%. For fiscal year 2011,
12    the Annual Percentage shall be 17.5%. For fiscal year 2012,
13    the Annual Percentage shall be 17.5%. For fiscal year 2013,
14    the Annual Percentage shall be 14%. For fiscal year 2014,
15    the Annual Percentage shall be 13.4%. For fiscal year 2015,
16    the Annual Percentage shall be 14%. For fiscal year 2018,
17    the Annual Percentage shall be 17.5%. For fiscal year 2019,
18    the Annual Percentage shall be 15.5%. For all other fiscal
19    years, the Annual Percentage shall be calculated as a
20    fraction, the numerator of which shall be the amount of
21    refunds approved for payment by the Department during the
22    preceding fiscal year as a result of overpayment of tax
23    liability under subsections (a) and (b)(6), (7), and (8),
24    (c) and (d) of Section 201 of this Act plus the amount of
25    such refunds remaining approved but unpaid at the end of
26    the preceding fiscal year, and the denominator of which

 

 

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1    shall be the amounts which will be collected pursuant to
2    subsections (a) and (b)(6), (7), and (8), (c) and (d) of
3    Section 201 of this Act during the preceding fiscal year;
4    except that in State fiscal year 2002, the Annual
5    Percentage shall in no event exceed 23%. The Director of
6    Revenue shall certify the Annual Percentage to the
7    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        (3) The Comptroller shall order transferred and the
11    Treasurer shall transfer from the Tobacco Settlement
12    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
13    in January, 2001, (ii) $35,000,000 in January, 2002, and
14    (iii) $35,000,000 in January, 2003.
15    (d) Expenditures from Income Tax Refund Fund.
16        (1) Beginning January 1, 1989, money in the Income Tax
17    Refund Fund shall be expended exclusively for the purpose
18    of paying refunds resulting from overpayment of tax
19    liability under Section 201 of this Act and for making
20    transfers pursuant to this subsection (d).
21        (2) The Director shall order payment of refunds
22    resulting from overpayment of tax liability under Section
23    201 of this Act from the Income Tax Refund Fund only to the
24    extent that amounts collected pursuant to Section 201 of
25    this Act and transfers pursuant to this subsection (d) and
26    item (3) of subsection (c) have been deposited and retained

 

 

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1    in the Fund.
2        (3) 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    Income Tax Refund Fund to the Personal Property Tax
6    Replacement Fund an amount, certified by the Director to
7    the Comptroller, equal to the excess of the amount
8    collected pursuant to subsections (c) and (d) of Section
9    201 of this Act deposited into the Income Tax Refund Fund
10    during the fiscal year over the amount of refunds resulting
11    from overpayment of tax liability under subsections (c) and
12    (d) of Section 201 of this Act paid from the Income Tax
13    Refund Fund during the fiscal year.
14        (4) As soon as possible after the end of each fiscal
15    year, the Director shall order transferred and the State
16    Treasurer and State Comptroller shall transfer from the
17    Personal Property Tax Replacement Fund to the Income Tax
18    Refund Fund an amount, certified by the Director to the
19    Comptroller, equal to the excess of the amount of refunds
20    resulting from overpayment of tax liability under
21    subsections (c) and (d) of Section 201 of this Act paid
22    from the Income Tax Refund Fund during the fiscal year over
23    the amount collected pursuant to subsections (c) and (d) of
24    Section 201 of this Act deposited into the Income Tax
25    Refund Fund during the fiscal year.
26        (4.5) As soon as possible after the end of fiscal year

 

 

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1    1999 and of each fiscal year thereafter, the Director shall
2    order transferred and the State Treasurer and State
3    Comptroller shall transfer from the Income Tax Refund Fund
4    to the General Revenue Fund any surplus remaining in the
5    Income Tax Refund Fund as of the end of such fiscal year;
6    excluding for fiscal years 2000, 2001, and 2002 amounts
7    attributable to transfers under item (3) of subsection (c)
8    less refunds resulting from the earned income tax credit.
9        (5) This Act shall constitute an irrevocable and
10    continuing appropriation from the Income Tax Refund Fund
11    for the purpose of paying refunds upon the order of the
12    Director in accordance with the provisions of this Section.
13    (e) Deposits into the Education Assistance Fund and the
14Income Tax Surcharge Local Government Distributive Fund. On
15July 1, 1991, and thereafter, of the amounts collected pursuant
16to subsections (a) and (b) of Section 201 of this Act, minus
17deposits into the Income Tax Refund Fund, the Department shall
18deposit 7.3% into the Education Assistance Fund in the State
19Treasury. Beginning July 1, 1991, and continuing through
20January 31, 1993, of the amounts collected pursuant to
21subsections (a) and (b) of Section 201 of the Illinois Income
22Tax Act, minus deposits into the Income Tax Refund Fund, the
23Department shall deposit 3.0% into the Income Tax Surcharge
24Local Government Distributive Fund in the State Treasury.
25Beginning February 1, 1993 and continuing through June 30,
261993, of the amounts collected pursuant to subsections (a) and

 

 

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1(b) of Section 201 of the Illinois Income Tax Act, minus
2deposits into the Income Tax Refund Fund, the Department shall
3deposit 4.4% into the Income Tax Surcharge Local Government
4Distributive Fund in the State Treasury. Beginning July 1,
51993, and continuing through June 30, 1994, of the amounts
6collected under subsections (a) and (b) of Section 201 of this
7Act, minus deposits into the Income Tax Refund Fund, the
8Department shall deposit 1.475% into the Income Tax Surcharge
9Local Government Distributive Fund in the State Treasury.
10    (f) Deposits into the Fund for the Advancement of
11Education. Beginning February 1, 2015, the Department shall
12deposit the following portions of the revenue realized from the
13tax imposed upon individuals, trusts, and estates by
14subsections (a) and (b) of Section 201 of this Act, minus
15deposits into the Income Tax Refund Fund, into the Fund for the
16Advancement of Education:
17        (1) beginning February 1, 2015, and prior to February
18    1, 2025, 1/30; and
19        (2) beginning February 1, 2025, 1/26.
20    If the rate of tax imposed by subsection (a) and (b) of
21Section 201 is reduced pursuant to Section 201.5 of this Act,
22the Department shall not make the deposits required by this
23subsection (f) on or after the effective date of the reduction.
24    (g) Deposits into the Commitment to Human Services Fund.
25Beginning February 1, 2015, the Department shall deposit the
26following portions of the revenue realized from the tax imposed

 

 

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1upon individuals, trusts, and estates by subsections (a) and
2(b) of Section 201 of this Act, minus deposits into the Income
3Tax Refund Fund, into the Commitment to Human Services Fund:
4        (1) beginning February 1, 2015, and prior to February
5    1, 2025, 1/30; and
6        (2) beginning February 1, 2025, 1/26.
7    If the rate of tax imposed by subsection (a) and (b) of
8Section 201 is reduced pursuant to Section 201.5 of this Act,
9the Department shall not make the deposits required by this
10subsection (g) on or after the effective date of the reduction.
11    (h) Deposits into the Tax Compliance and Administration
12Fund. Beginning on the first day of the first calendar month to
13occur on or after August 26, 2014 (the effective date of Public
14Act 98-1098), each month the Department shall pay into the Tax
15Compliance and Administration Fund, to be used, subject to
16appropriation, to fund additional auditors and compliance
17personnel at the Department, an amount equal to 1/12 of 5% of
18the cash receipts collected during the preceding fiscal year by
19the Audit Bureau of the Department from the tax imposed by
20subsections (a), (b), (c), and (d) of Section 201 of this Act,
21net of deposits into the Income Tax Refund Fund made from those
22cash receipts.
23(Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,
24eff. 7-6-17; 100-587, eff. 6-4-18; 100-621, eff. 7-20-18;
25100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised 1-8-19.)
 

 

 

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1    Section 99. Effective date. This Act takes effect on
2January 1, 2021, but does not take effect at all unless Senate
3Joint Resolution Constitutional Amendment No. 1 of the 101st
4General Assembly is approved by the voters of the State prior
5to that date.".