| |||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | ||||||||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||||||||||||
4 | Section 5. The Illinois Enterprise Zone Act is amended by | ||||||||||||||||||||||||||||||||||||
5 | changing Section 5.3 as follows: | ||||||||||||||||||||||||||||||||||||
6 | (20 ILCS 655/5.3) (from Ch. 67 1/2, par. 608) | ||||||||||||||||||||||||||||||||||||
7 | Sec. 5.3. Certification of Enterprise Zones; Effective | ||||||||||||||||||||||||||||||||||||
8 | date. | ||||||||||||||||||||||||||||||||||||
9 | (a) Approval of designated Enterprise Zones shall be made | ||||||||||||||||||||||||||||||||||||
10 | by the
Department by certification of the designating | ||||||||||||||||||||||||||||||||||||
11 | ordinance. The Department
shall promptly issue a certificate | ||||||||||||||||||||||||||||||||||||
12 | for each Enterprise Zone upon its
approval. The certificate | ||||||||||||||||||||||||||||||||||||
13 | shall be signed by the Director of the
Department, shall make | ||||||||||||||||||||||||||||||||||||
14 | specific reference to the designating ordinance,
which shall be | ||||||||||||||||||||||||||||||||||||
15 | attached thereto, and shall be filed in the office of the
| ||||||||||||||||||||||||||||||||||||
16 | Secretary of State. A certified copy of the Enterprise Zone | ||||||||||||||||||||||||||||||||||||
17 | Certificate, or
a duplicate original thereof, shall be recorded | ||||||||||||||||||||||||||||||||||||
18 | in the office of recorder
of deeds of the county in which the | ||||||||||||||||||||||||||||||||||||
19 | Enterprise Zone lies. | ||||||||||||||||||||||||||||||||||||
20 | (b) An Enterprise Zone shall be effective upon its | ||||||||||||||||||||||||||||||||||||
21 | certification. The
Department shall transmit a copy of the | ||||||||||||||||||||||||||||||||||||
22 | certification to the Department
of Revenue, and to the | ||||||||||||||||||||||||||||||||||||
23 | designating municipality or county. |
| |||||||
| |||||||
1 | Upon certification of an Enterprise Zone, the terms and | ||||||
2 | provisions of the
designating ordinance shall be in effect, and | ||||||
3 | may not be amended or repealed
except in accordance with | ||||||
4 | Section 5.4. | ||||||
5 | (c) An Enterprise Zone shall be in effect for 30 calendar | ||||||
6 | years, or for
a lesser number of years specified in the | ||||||
7 | certified designating ordinance.
Enterprise Zones shall | ||||||
8 | terminate at midnight of December 31 of the final
calendar year | ||||||
9 | of the certified term, except as provided in Section 5.4. The | ||||||
10 | Department shall grant, upon application by the corporate | ||||||
11 | authorities of the county or municipality that adopted the | ||||||
12 | ordinance designating the Enterprise Zone, a one-time | ||||||
13 | extension of 20 additional calendar years for each Zone. | ||||||
14 | (d) No more than 12 Enterprise Zones may be certified by | ||||||
15 | the Department
in calendar year 1984, no more than 12 | ||||||
16 | Enterprise Zones may be certified
by the Department in calendar | ||||||
17 | year 1985, no more than 13 Enterprise
Zones may be certified by | ||||||
18 | the Department in calendar year 1986, no
more than 15 | ||||||
19 | Enterprise Zones may be certified by the Department in
calendar | ||||||
20 | year 1987, and no more than 20 Enterprise Zones may be | ||||||
21 | certified
by the Department in calendar year 1990. In other | ||||||
22 | calendar years, no more
than 13 Enterprise Zones may be | ||||||
23 | certified by the Department.
The Department may also designate | ||||||
24 | up to 8 additional Enterprise Zones
outside the regular | ||||||
25 | application cycle if warranted by the extreme economic
| ||||||
26 | circumstances as determined by the Department. The Department |
| |||||||
| |||||||
1 | may also
designate one additional Enterprise Zone outside the | ||||||
2 | regular application
cycle if an aircraft manufacturer agrees to | ||||||
3 | locate
an aircraft manufacturing facility in the proposed | ||||||
4 | Enterprise Zone.
Notwithstanding any
other provision of this | ||||||
5 | Act, no more than 89 Enterprise Zones may be
certified by the | ||||||
6 | Department for the 10 calendar years commencing with 1983.
The | ||||||
7 | 7 additional Enterprise Zones authorized by Public Act
86-15 | ||||||
8 | shall not lie within municipalities or unincorporated areas of
| ||||||
9 | counties that abut or are contiguous to Enterprise Zones | ||||||
10 | certified pursuant
to this Section prior to June 30, 1989. The | ||||||
11 | 7 additional Enterprise
Zones (excluding the additional | ||||||
12 | Enterprise Zone which may be designated
outside the regular | ||||||
13 | application cycle) authorized by Public Act 86-1030
shall not | ||||||
14 | lie within municipalities or unincorporated areas of counties
| ||||||
15 | that abut or are contiguous to Enterprise Zones certified | ||||||
16 | pursuant to this
Section prior to February 28, 1990. Beginning | ||||||
17 | in calendar year 2004 and until
December 31, 2008, one | ||||||
18 | additional enterprise zone may be certified by the
Department. | ||||||
19 | In any calendar year, the
Department
may not certify more than | ||||||
20 | 3 Zones located within the same municipality. The
Department | ||||||
21 | may certify Enterprise Zones in each of the 10 calendar years
| ||||||
22 | commencing with 1983. The Department may not certify more than | ||||||
23 | a total of
18 Enterprise Zones located within the same county | ||||||
24 | (whether within
municipalities or within unincorporated | ||||||
25 | territory) for the 10 calendar years
commencing with 1983. | ||||||
26 | Thereafter, the Department may not certify any
additional |
| |||||||
| |||||||
1 | Enterprise Zones, but may amend and rescind certifications of
| ||||||
2 | existing Enterprise Zones in accordance with Section 5.4. | ||||||
3 | (e) Notwithstanding any other provision of law, if (i) the | ||||||
4 | county board of
any county in which a current military base is | ||||||
5 | located, in part or in whole, or
in which a military
base that | ||||||
6 | has been closed within 20 years of the effective date of this
| ||||||
7 | amendatory Act of 1998 is located, in part or in whole, adopts | ||||||
8 | a designating
ordinance in accordance with Section 5 of this | ||||||
9 | Act to designate the military
base in that county as an | ||||||
10 | enterprise zone and (ii) the property otherwise
meets the
| ||||||
11 | qualifications for an enterprise zone as prescribed in Section | ||||||
12 | 4 of this Act,
then the Department may certify the designating | ||||||
13 | ordinance or ordinances, as the
case may be. | ||||||
14 | (Source: P.A. 92-16, eff. 6-28-01; 92-777, eff. 1-1-03; 93-436, | ||||||
15 | eff.
1-1-04.) | ||||||
16 | Section 10. The Illinois Income Tax Act is amended by | ||||||
17 | changing Sections 201 and 207 as follows: | ||||||
18 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
19 | Sec. 201. Tax Imposed. | ||||||
20 | (a) In general. A tax measured by net income is hereby | ||||||
21 | imposed on every
individual, corporation, trust and estate for | ||||||
22 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
23 | of earning or receiving income in or
as a resident of this | ||||||
24 | State. Such tax shall be in addition to all other
occupation or |
| |||||||
| |||||||
1 | privilege taxes imposed by this State or by any municipal
| ||||||
2 | corporation or political subdivision thereof. | ||||||
3 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
4 | Section shall be
determined as follows, except as adjusted by | ||||||
5 | subsection (d-1): | ||||||
6 | (1) In the case of an individual, trust or estate, for | ||||||
7 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
8 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
9 | year. | ||||||
10 | (2) In the case of an individual, trust or estate, for | ||||||
11 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
12 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
13 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
14 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
15 | 3% of the
taxpayer's net income for the period after June | ||||||
16 | 30, 1989, as calculated
under Section 202.3. | ||||||
17 | (3) In the case of an individual, trust or estate, for | ||||||
18 | taxable years
beginning after June 30, 1989, and ending | ||||||
19 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
20 | taxpayer's net
income for the taxable year. | ||||||
21 | (4) In the case of an individual, trust, or estate, for | ||||||
22 | taxable years beginning prior to January 1, 2011, and | ||||||
23 | ending after December 31, 2010, an amount equal to the sum | ||||||
24 | of (i) 3% of the taxpayer's net income for the period prior | ||||||
25 | to January 1, 2011, as calculated under Section 202.5, and | ||||||
26 | (ii) 5% of the taxpayer's net income for the period after |
| |||||||
| |||||||
1 | December 31, 2010, as calculated under Section 202.5. | ||||||
2 | (5) In the case of an individual, trust, or estate, for | ||||||
3 | taxable years beginning on or after January 1, 2011, and | ||||||
4 | ending prior to January 1, 2015, an amount equal to 5% of | ||||||
5 | the taxpayer's net income for the taxable year. | ||||||
6 | (5.1) In the case of an individual, trust, or estate, | ||||||
7 | for taxable years beginning prior to January 1, 2015, and | ||||||
8 | ending after December 31, 2014, an amount equal to the sum | ||||||
9 | of (i) 5% of the taxpayer's net income for the period prior | ||||||
10 | to January 1, 2015, as calculated under Section 202.5, and | ||||||
11 | (ii) 3.75% of the taxpayer's net income for the period | ||||||
12 | after December 31, 2014, as calculated under Section 202.5. | ||||||
13 | (5.2) In the case of an individual, trust, or estate, | ||||||
14 | for taxable years beginning on or after January 1, 2015, | ||||||
15 | and ending prior to January 1, 2025, an amount equal to | ||||||
16 | 3.75% of the taxpayer's net income for the taxable year. | ||||||
17 | (5.3) In the case of an individual, trust, or estate, | ||||||
18 | for taxable years beginning prior to January 1, 2025, and | ||||||
19 | ending after December 31, 2024, an amount equal to the sum | ||||||
20 | of (i) 3.75% of the taxpayer's net income for the period | ||||||
21 | prior to January 1, 2025, as calculated under Section | ||||||
22 | 202.5, and (ii) 3.25% of the taxpayer's net income for the | ||||||
23 | period after December 31, 2024, as calculated under Section | ||||||
24 | 202.5. | ||||||
25 | (5.4) In the case of an individual, trust, or estate, | ||||||
26 | for taxable years beginning on or after January 1, 2025, an |
| |||||||
| |||||||
1 | amount equal to 3.25% of the taxpayer's net income for the | ||||||
2 | taxable year. | ||||||
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 |
| |||||||
| |||||||
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 | January 1, 2025, 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 January 1, 2025, and ending after | ||||||
15 | December 31, 2024, an amount equal to the sum of (i) 5.25% | ||||||
16 | of the taxpayer's net income for the period prior to | ||||||
17 | January 1, 2025, as calculated under Section 202.5, and | ||||||
18 | (ii) 4.8% of the taxpayer's net income for the period after | ||||||
19 | December 31, 2024, as calculated under Section 202.5. | ||||||
20 | (14) In the case of a corporation, for taxable years | ||||||
21 | beginning on or after January 1, 2025, an amount equal to | ||||||
22 | 4.8% of the taxpayer's net income for the taxable year. | ||||||
23 | The rates under this subsection (b) are subject to the | ||||||
24 | provisions of Section 201.5. | ||||||
25 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
26 | Beginning on July 1, 1979 and thereafter, in addition to such |
| |||||||
| |||||||
1 | income
tax, there is also hereby imposed the Personal Property | ||||||
2 | Tax Replacement
Income Tax measured by net income on every | ||||||
3 | corporation (including Subchapter
S corporations), partnership | ||||||
4 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
5 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
6 | income in or as a resident of this State. The Personal Property
| ||||||
7 | Tax Replacement Income Tax shall be in addition to the income | ||||||
8 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
9 | addition to all other
occupation or privilege taxes imposed by | ||||||
10 | this State or by any municipal
corporation or political | ||||||
11 | subdivision thereof. | ||||||
12 | (d) Additional Personal Property Tax Replacement Income | ||||||
13 | Tax Rates.
The personal property tax replacement income tax | ||||||
14 | imposed by this subsection
and subsection (c) of this Section | ||||||
15 | in the case of a corporation, other
than a Subchapter S | ||||||
16 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
17 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
18 | income for the taxable year, except that
beginning on January | ||||||
19 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
20 | subsection shall be reduced to 2.5%, and in the case of a
| ||||||
21 | partnership, trust or a Subchapter S corporation shall be an | ||||||
22 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
23 | for the taxable year. | ||||||
24 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
25 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
26 | Illinois Insurance Code,
whose state or country of domicile |
| |||||||
| |||||||
1 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
2 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
3 | are 50% or more of its total insurance
premiums as determined | ||||||
4 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
5 | that for purposes of this determination premiums from | ||||||
6 | reinsurance do
not include premiums from inter-affiliate | ||||||
7 | reinsurance arrangements),
beginning with taxable years ending | ||||||
8 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
9 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
10 | increased) to the rate at which the total amount of tax imposed | ||||||
11 | under this Act,
net of all credits allowed under this Act, | ||||||
12 | shall equal (i) the total amount of
tax that would be imposed | ||||||
13 | on the foreign insurer's net income allocable to
Illinois for | ||||||
14 | the taxable year by such foreign insurer's state or country of
| ||||||
15 | domicile if that net income were subject to all income taxes | ||||||
16 | and taxes
measured by net income imposed by such foreign | ||||||
17 | insurer's state or country of
domicile, net of all credits | ||||||
18 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
19 | income by the foreign insurer's state of domicile.
For the | ||||||
20 | purposes of this subsection (d-1), an inter-affiliate includes | ||||||
21 | a
mutual insurer under common management. | ||||||
22 | (1) For the purposes of subsection (d-1), in no event | ||||||
23 | shall the sum of the
rates of tax imposed by subsections | ||||||
24 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
25 | (A) the total amount of tax imposed on such foreign | ||||||
26 | insurer under
this Act for a taxable year, net of all |
| |||||||
| |||||||
1 | credits allowed under this Act, plus | ||||||
2 | (B) the privilege tax imposed by Section 409 of the | ||||||
3 | Illinois Insurance
Code, the fire insurance company | ||||||
4 | tax imposed by Section 12 of the Fire
Investigation | ||||||
5 | Act, and the fire department taxes imposed under | ||||||
6 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
7 | equals 1.25% for taxable years ending prior to December 31, | ||||||
8 | 2003, or
1.75% for taxable years ending on or after | ||||||
9 | December 31, 2003, of the net
taxable premiums written for | ||||||
10 | the taxable year,
as described by subsection (1) of Section | ||||||
11 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
12 | no event increase the rates imposed under subsections
(b) | ||||||
13 | and (d). | ||||||
14 | (2) Any reduction in the rates of tax imposed by this | ||||||
15 | subsection shall be
applied first against the rates imposed | ||||||
16 | by subsection (b) and only after the
tax imposed by | ||||||
17 | subsection (a) net of all credits allowed under this | ||||||
18 | Section
other than the credit allowed under subsection (i) | ||||||
19 | has been reduced to zero,
against the rates imposed by | ||||||
20 | subsection (d). | ||||||
21 | This subsection (d-1) is exempt from the provisions of | ||||||
22 | Section 250. | ||||||
23 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
24 | against the Personal Property Tax Replacement Income Tax for
| ||||||
25 | investment in qualified property. | ||||||
26 | (1) A taxpayer shall be allowed a credit equal to .5% |
| |||||||
| |||||||
1 | of
the basis of qualified property placed in service during | ||||||
2 | the taxable year,
provided such property is placed in | ||||||
3 | service on or after
July 1, 1984. There shall be allowed an | ||||||
4 | additional credit equal
to .5% of the basis of qualified | ||||||
5 | property placed in service during the
taxable year, | ||||||
6 | provided such property is placed in service on or
after | ||||||
7 | July 1, 1986, and the taxpayer's base employment
within | ||||||
8 | Illinois has increased by 1% or more over the preceding | ||||||
9 | year as
determined by the taxpayer's employment records | ||||||
10 | filed with the
Illinois Department of Employment Security. | ||||||
11 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
12 | met the 1% growth in base employment for
the first year in | ||||||
13 | which they file employment records with the Illinois
| ||||||
14 | Department of Employment Security. The provisions added to | ||||||
15 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
16 | Act 87-895) shall be
construed as declaratory of existing | ||||||
17 | law and not as a new enactment. If,
in any year, the | ||||||
18 | increase in base employment within Illinois over the
| ||||||
19 | preceding year is less than 1%, the additional credit shall | ||||||
20 | be limited to that
percentage times a fraction, the | ||||||
21 | numerator of which is .5% and the denominator
of which is | ||||||
22 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
23 | not be
allowed to the extent that it would reduce a | ||||||
24 | taxpayer's liability in any tax
year below zero, nor may | ||||||
25 | any credit for qualified property be allowed for any
year | ||||||
26 | other than the year in which the property was placed in |
| |||||||
| |||||||
1 | service in
Illinois. For tax years ending on or after | ||||||
2 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
3 | credit shall be allowed for the tax year in
which the | ||||||
4 | property is placed in service, or, if the amount of the | ||||||
5 | credit
exceeds the tax liability for that year, whether it | ||||||
6 | exceeds the original
liability or the liability as later | ||||||
7 | amended, such excess may be carried
forward and applied to | ||||||
8 | the tax liability of the 5 taxable years following
the | ||||||
9 | excess credit years if the taxpayer (i) makes investments | ||||||
10 | which cause
the creation of a minimum of 2,000 full-time | ||||||
11 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
12 | enterprise zone established pursuant to the Illinois
| ||||||
13 | Enterprise Zone Act and (iii) is certified by the | ||||||
14 | Department of Commerce
and Community Affairs (now | ||||||
15 | Department of Commerce and Economic Opportunity) as | ||||||
16 | complying with the requirements specified in
clause (i) and | ||||||
17 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
18 | Community Affairs (now Department of Commerce and Economic | ||||||
19 | Opportunity) shall notify the Department of Revenue of all | ||||||
20 | such
certifications immediately. For tax years ending | ||||||
21 | after December 31, 1988,
the credit shall be allowed for | ||||||
22 | the tax year in which the property is
placed in service, | ||||||
23 | or, if the amount of the credit exceeds the tax
liability | ||||||
24 | for that year, whether it exceeds the original liability or | ||||||
25 | the
liability as later amended, such excess may be carried | ||||||
26 | forward and applied
to the tax liability of the 5 taxable |
| |||||||
| |||||||
1 | years following the excess credit
years. The credit shall | ||||||
2 | be applied to the earliest year for which there is
a | ||||||
3 | liability. If there is credit from more than one tax year | ||||||
4 | that is
available to offset a liability, earlier credit | ||||||
5 | shall be applied first. | ||||||
6 | (2) The term "qualified property" means property | ||||||
7 | which: | ||||||
8 | (A) is tangible, whether new or used, including | ||||||
9 | buildings and structural
components of buildings and | ||||||
10 | signs that are real property, but not including
land or | ||||||
11 | improvements to real property that are not a structural | ||||||
12 | component of a
building such as landscaping, sewer | ||||||
13 | lines, local access roads, fencing, parking
lots, and | ||||||
14 | other appurtenances; | ||||||
15 | (B) is depreciable pursuant to Section 167 of the | ||||||
16 | Internal Revenue Code,
except that "3-year property" | ||||||
17 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
18 | eligible for the credit provided by this subsection | ||||||
19 | (e); | ||||||
20 | (C) is acquired by purchase as defined in Section | ||||||
21 | 179(d) of
the Internal Revenue Code; | ||||||
22 | (D) is used in Illinois by a taxpayer who is | ||||||
23 | primarily engaged in
manufacturing, or in mining coal | ||||||
24 | or fluorite, or in retailing, or was placed in service | ||||||
25 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
26 | Zone established pursuant to the River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone Act; and | ||||||
2 | (E) has not previously been used in Illinois in | ||||||
3 | such a manner and by
such a person as would qualify for | ||||||
4 | the credit provided by this subsection
(e) or | ||||||
5 | subsection (f). | ||||||
6 | (3) For purposes of this subsection (e), | ||||||
7 | "manufacturing" means
the material staging and production | ||||||
8 | of tangible personal property by
procedures commonly | ||||||
9 | regarded as manufacturing, processing, fabrication, or
| ||||||
10 | assembling which changes some existing material into new | ||||||
11 | shapes, new
qualities, or new combinations. For purposes of | ||||||
12 | this subsection
(e) the term "mining" shall have the same | ||||||
13 | meaning as the term "mining" in
Section 613(c) of the | ||||||
14 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
15 | the term "retailing" means the sale of tangible personal | ||||||
16 | property for use or consumption and not for resale, or
| ||||||
17 | services rendered in conjunction with the sale of tangible | ||||||
18 | personal property for use or consumption and not for | ||||||
19 | resale. For purposes of this subsection (e), "tangible | ||||||
20 | personal property" has the same meaning as when that term | ||||||
21 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
22 | taxable years ending after December 31, 2008, does not | ||||||
23 | include the generation, transmission, or distribution of | ||||||
24 | electricity. | ||||||
25 | (4) The basis of qualified property shall be the basis
| ||||||
26 | used to compute the depreciation deduction for federal |
| |||||||
| |||||||
1 | income tax purposes. | ||||||
2 | (5) If the basis of the property for federal income tax | ||||||
3 | depreciation
purposes is increased after it has been placed | ||||||
4 | in service in Illinois by
the taxpayer, the amount of such | ||||||
5 | increase shall be deemed property placed
in service on the | ||||||
6 | date of such increase in basis. | ||||||
7 | (6) The term "placed in service" shall have the same
| ||||||
8 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
9 | (7) If during any taxable year, any property ceases to
| ||||||
10 | be qualified property in the hands of the taxpayer within | ||||||
11 | 48 months after
being placed in service, or the situs of | ||||||
12 | any qualified property is
moved outside Illinois within 48 | ||||||
13 | months after being placed in service, the
Personal Property | ||||||
14 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
15 | increased. Such increase shall be determined by (i) | ||||||
16 | recomputing the
investment credit which would have been | ||||||
17 | allowed for the year in which
credit for such property was | ||||||
18 | originally allowed by eliminating such
property from such | ||||||
19 | computation and, (ii) subtracting such recomputed credit
| ||||||
20 | from the amount of credit previously allowed. For the | ||||||
21 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
22 | qualified property resulting
from a redetermination of the | ||||||
23 | purchase price shall be deemed a disposition
of qualified | ||||||
24 | property to the extent of such reduction. | ||||||
25 | (8) Unless the investment credit is extended by law, | ||||||
26 | the
basis of qualified property shall not include costs |
| |||||||
| |||||||
1 | incurred after
December 31, 2013, except for costs incurred | ||||||
2 | pursuant to a binding
contract entered into on or before | ||||||
3 | December 31, 2013. | ||||||
4 | (9) Each taxable year ending before December 31, 2000, | ||||||
5 | a partnership may
elect to pass through to its
partners the | ||||||
6 | credits to which the partnership is entitled under this | ||||||
7 | subsection
(e) for the taxable year. A partner may use the | ||||||
8 | credit allocated to him or her
under this paragraph only | ||||||
9 | against the tax imposed in subsections (c) and (d) of
this | ||||||
10 | Section. If the partnership makes that election, those | ||||||
11 | credits shall be
allocated among the partners in the | ||||||
12 | partnership in accordance with the rules
set forth in | ||||||
13 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
14 | promulgated under that Section, and the allocated amount of | ||||||
15 | the credits shall
be allowed to the partners for that | ||||||
16 | taxable year. The partnership shall make
this election on | ||||||
17 | its Personal Property Tax Replacement Income Tax return for
| ||||||
18 | that taxable year. The election to pass through the credits | ||||||
19 | shall be
irrevocable. | ||||||
20 | For taxable years ending on or after December 31, 2000, | ||||||
21 | a
partner that qualifies its
partnership for a subtraction | ||||||
22 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
23 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
24 | S
corporation for a subtraction under subparagraph (S) of | ||||||
25 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
26 | allowed a credit under this subsection
(e) equal to its |
| |||||||
| |||||||
1 | share of the credit earned under this subsection (e) during
| ||||||
2 | the taxable year by the partnership or Subchapter S | ||||||
3 | corporation, determined in
accordance with the | ||||||
4 | determination of income and distributive share of
income | ||||||
5 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
6 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
7 | of Section 250. | ||||||
8 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
9 | Redevelopment Zone. | ||||||
10 | (1) A taxpayer shall be allowed a credit against the | ||||||
11 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
12 | investment in qualified
property which is placed in service | ||||||
13 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
14 | Enterprise Zone Act or, for property placed in service on | ||||||
15 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
16 | established pursuant to the River Edge Redevelopment Zone | ||||||
17 | Act. For partners, shareholders
of Subchapter S | ||||||
18 | corporations, and owners of limited liability companies,
| ||||||
19 | if the liability company is treated as a partnership for | ||||||
20 | purposes of
federal and State income taxation, there shall | ||||||
21 | be allowed a credit under
this subsection (f) to be | ||||||
22 | determined in accordance with the determination
of income | ||||||
23 | and distributive share of income under Sections 702 and 704 | ||||||
24 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
25 | shall be .5% of the
basis for such property. The credit | ||||||
26 | shall be available only in the taxable
year in which the |
| |||||||
| |||||||
1 | property is placed in service in the Enterprise Zone or | ||||||
2 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
3 | the extent that it would reduce a taxpayer's
liability for | ||||||
4 | the tax imposed by subsections (a) and (b) of this Section | ||||||
5 | to
below zero. For tax years ending on or after December | ||||||
6 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
7 | which the property is placed in
service, or, if the amount | ||||||
8 | of the credit exceeds the tax liability for that
year, | ||||||
9 | whether it exceeds the original liability or the liability | ||||||
10 | as later
amended, such excess may be carried forward and | ||||||
11 | applied to the tax
liability of the 5 taxable years | ||||||
12 | following the excess credit year.
The credit shall be | ||||||
13 | applied to the earliest year for which there is a
| ||||||
14 | liability. If there is credit from more than one tax year | ||||||
15 | that is available
to offset a liability, the credit | ||||||
16 | accruing first in time shall be applied
first. | ||||||
17 | (2) The term qualified property means property which: | ||||||
18 | (A) is tangible, whether new or used, including | ||||||
19 | buildings and
structural components of buildings; | ||||||
20 | (B) is depreciable pursuant to Section 167 of the | ||||||
21 | Internal Revenue
Code, except that "3-year property" | ||||||
22 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
23 | eligible for the credit provided by this subsection | ||||||
24 | (f); | ||||||
25 | (C) is acquired by purchase as defined in Section | ||||||
26 | 179(d) of
the Internal Revenue Code; |
| |||||||
| |||||||
1 | (D) is used in the Enterprise Zone or River Edge | ||||||
2 | Redevelopment Zone by the taxpayer; and | ||||||
3 | (E) has not been previously used in Illinois in | ||||||
4 | such a manner and by
such a person as would qualify for | ||||||
5 | the credit provided by this subsection
(f) or | ||||||
6 | subsection (e). | ||||||
7 | (3) The basis of qualified property shall be the basis | ||||||
8 | used to compute
the depreciation deduction for federal | ||||||
9 | income tax purposes. | ||||||
10 | (4) If the basis of the property for federal income tax | ||||||
11 | depreciation
purposes is increased after it has been placed | ||||||
12 | in service in the Enterprise
Zone or River Edge | ||||||
13 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
14 | increase shall be deemed property
placed in service on the | ||||||
15 | date of such increase in basis. | ||||||
16 | (5) The term "placed in service" shall have the same | ||||||
17 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
18 | (6) If during any taxable year, any property ceases to | ||||||
19 | be qualified
property in the hands of the taxpayer within | ||||||
20 | 48 months after being placed
in service, or the situs of | ||||||
21 | any qualified property is moved outside the
Enterprise Zone | ||||||
22 | or River Edge Redevelopment Zone within 48 months after | ||||||
23 | being placed in service, the tax
imposed under subsections | ||||||
24 | (a) and (b) of this Section for such taxable year
shall be | ||||||
25 | increased. Such increase shall be determined by (i) | ||||||
26 | recomputing
the investment credit which would have been |
| |||||||
| |||||||
1 | allowed for the year in which
credit for such property was | ||||||
2 | originally allowed by eliminating such
property from such | ||||||
3 | computation, and (ii) subtracting such recomputed credit
| ||||||
4 | from the amount of credit previously allowed. For the | ||||||
5 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
6 | qualified property resulting
from a redetermination of the | ||||||
7 | purchase price shall be deemed a disposition
of qualified | ||||||
8 | property to the extent of such reduction. | ||||||
9 | (7) There shall be allowed an additional credit equal | ||||||
10 | to 0.5% of the basis of qualified property placed in | ||||||
11 | service during the taxable year in a River Edge | ||||||
12 | Redevelopment Zone, provided such property is placed in | ||||||
13 | service on or after July 1, 2006, and the taxpayer's base | ||||||
14 | employment within Illinois has increased by 1% or more over | ||||||
15 | the preceding year as determined by the taxpayer's | ||||||
16 | employment records filed with the Illinois Department of | ||||||
17 | Employment Security. Taxpayers who are new to Illinois | ||||||
18 | shall be deemed to have met the 1% growth in base | ||||||
19 | employment for the first year in which they file employment | ||||||
20 | records with the Illinois Department of Employment | ||||||
21 | Security. If, in any year, the increase in base employment | ||||||
22 | within Illinois over the preceding year is less than 1%, | ||||||
23 | the additional credit shall be limited to that percentage | ||||||
24 | times a fraction, the numerator of which is 0.5% and the | ||||||
25 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
26 | (g) Jobs Tax Credit; Enterprise Zone, River Edge |
| |||||||
| |||||||
1 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone. | ||||||
2 | (1) A taxpayer conducting a trade or business in an | ||||||
3 | enterprise zone
or a High Impact Business designated by the | ||||||
4 | Department of Commerce and
Economic Opportunity or for | ||||||
5 | taxable years ending on or after December 31, 2006, in a | ||||||
6 | River Edge Redevelopment Zone conducting a trade or | ||||||
7 | business in a federally designated
Foreign Trade Zone or | ||||||
8 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
9 | by subsections (a) and (b) of this Section in the amount of | ||||||
10 | $500
per eligible employee hired to work in the zone during | ||||||
11 | the taxable year. | ||||||
12 | (2) To qualify for the credit: | ||||||
13 | (A) the taxpayer must hire 5 or more eligible | ||||||
14 | employees to work in an
enterprise zone, River Edge | ||||||
15 | Redevelopment Zone, or federally designated Foreign | ||||||
16 | Trade Zone or Sub-Zone
during the taxable year; | ||||||
17 | (B) the taxpayer's total employment within the | ||||||
18 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
19 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
20 | must
increase by 5 or more full-time employees beyond | ||||||
21 | the total employed in that
zone at the end of the | ||||||
22 | previous tax year for which a jobs tax
credit under | ||||||
23 | this Section was taken, or beyond the total employed by | ||||||
24 | the
taxpayer as of December 31, 1985, whichever is | ||||||
25 | later; and | ||||||
26 | (C) the eligible employees must be employed 180 |
| |||||||
| |||||||
1 | consecutive days in
order to be deemed hired for | ||||||
2 | purposes of this subsection. | ||||||
3 | (3) An "eligible employee" means an employee who is: | ||||||
4 | (A) Certified by the Department of Commerce and | ||||||
5 | Economic Opportunity
as "eligible for services" | ||||||
6 | pursuant to regulations promulgated in
accordance with | ||||||
7 | Title II of the Job Training Partnership Act, Training
| ||||||
8 | Services for the Disadvantaged or Title III of the Job | ||||||
9 | Training Partnership
Act, Employment and Training | ||||||
10 | Assistance for Dislocated Workers Program. | ||||||
11 | (B) Hired after the enterprise zone, River Edge | ||||||
12 | Redevelopment Zone, or federally designated Foreign
| ||||||
13 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
14 | business was located in that zone, whichever is later. | ||||||
15 | (C) Employed in the enterprise zone, River Edge | ||||||
16 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
17 | An employee is employed in an
enterprise zone or | ||||||
18 | federally designated Foreign Trade Zone or Sub-Zone
if | ||||||
19 | his services are rendered there or it is the base of
| ||||||
20 | operations for the services performed. | ||||||
21 | (D) A full-time employee working 30 or more hours | ||||||
22 | per week. | ||||||
23 | (4) For tax years ending on or after December 31, 1985 | ||||||
24 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
25 | for the tax year in which
the eligible employees are hired. | ||||||
26 | For tax years ending on or after
December 31, 1988, the |
| |||||||
| |||||||
1 | credit shall be allowed for the tax year immediately
| ||||||
2 | following the tax year in which the eligible employees are | ||||||
3 | hired. If the
amount of the credit exceeds the tax | ||||||
4 | liability for that year, whether it
exceeds the original | ||||||
5 | liability or the liability as later amended, such
excess | ||||||
6 | may be carried forward and applied to the tax liability of | ||||||
7 | the 5
taxable years following the excess credit year. The | ||||||
8 | credit shall be
applied to the earliest year for which | ||||||
9 | there is a liability. If there is
credit from more than one | ||||||
10 | tax year that is available to offset a liability,
earlier | ||||||
11 | credit shall be applied first. | ||||||
12 | (5) The Department of Revenue shall promulgate such | ||||||
13 | rules and regulations
as may be deemed necessary to carry | ||||||
14 | out the purposes of this subsection (g). | ||||||
15 | (6) The credit shall be available for eligible | ||||||
16 | employees hired on or
after January 1, 1986. | ||||||
17 | (h) Investment credit; High Impact Business. | ||||||
18 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
19 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
20 | allowed a credit
against the tax imposed by subsections (a) | ||||||
21 | and (b) of this Section for
investment in qualified
| ||||||
22 | property which is placed in service by a Department of | ||||||
23 | Commerce and Economic Opportunity
designated High Impact | ||||||
24 | Business. The credit shall be .5% of the basis
for such | ||||||
25 | property. The credit shall not be available (i) until the | ||||||
26 | minimum
investments in qualified property set forth in |
| |||||||
| |||||||
1 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
2 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
3 | time authorized in subsection (b-5) of the Illinois
| ||||||
4 | Enterprise Zone Act for entities designated as High Impact | ||||||
5 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
6 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
7 | Act, and shall not be allowed to the extent that it would
| ||||||
8 | reduce a taxpayer's liability for the tax imposed by | ||||||
9 | subsections (a) and (b) of
this Section to below zero. The | ||||||
10 | credit applicable to such investments shall be
taken in the | ||||||
11 | taxable year in which such investments have been completed. | ||||||
12 | The
credit for additional investments beyond the minimum | ||||||
13 | investment by a designated
high impact business authorized | ||||||
14 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
15 | Enterprise Zone Act shall be available only in the taxable | ||||||
16 | year in
which the property is placed in service and shall | ||||||
17 | not be allowed to the extent
that it would reduce a | ||||||
18 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
19 | and (b) of this Section to below zero.
For tax years ending | ||||||
20 | on or after December 31, 1987, the credit shall be
allowed | ||||||
21 | for the tax year in which the property is placed in | ||||||
22 | service, or, if
the amount of the credit exceeds the tax | ||||||
23 | liability for that year, whether
it exceeds the original | ||||||
24 | liability or the liability as later amended, such
excess | ||||||
25 | may be carried forward and applied to the tax liability of | ||||||
26 | the 5
taxable years following the excess credit year. The |
| |||||||
| |||||||
1 | credit shall be
applied to the earliest year for which | ||||||
2 | there is a liability. If there is
credit from more than one | ||||||
3 | tax year that is available to offset a liability,
the | ||||||
4 | credit accruing first in time shall be applied first. | ||||||
5 | Changes made in this subdivision (h)(1) by Public Act | ||||||
6 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
7 | reflect existing law. | ||||||
8 | (2) The term qualified property means property which: | ||||||
9 | (A) is tangible, whether new or used, including | ||||||
10 | buildings and
structural components of buildings; | ||||||
11 | (B) is depreciable pursuant to Section 167 of the | ||||||
12 | Internal Revenue
Code, except that "3-year property" | ||||||
13 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
14 | eligible for the credit provided by this subsection | ||||||
15 | (h); | ||||||
16 | (C) is acquired by purchase as defined in Section | ||||||
17 | 179(d) of the
Internal Revenue Code; and | ||||||
18 | (D) is not eligible for the Enterprise Zone | ||||||
19 | Investment Credit provided
by subsection (f) of this | ||||||
20 | Section. | ||||||
21 | (3) The basis of qualified property shall be the basis | ||||||
22 | used to compute
the depreciation deduction for federal | ||||||
23 | income tax purposes. | ||||||
24 | (4) If the basis of the property for federal income tax | ||||||
25 | depreciation
purposes is increased after it has been placed | ||||||
26 | in service in a federally
designated Foreign Trade Zone or |
| |||||||
| |||||||
1 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
2 | such increase shall be deemed property placed in service on
| ||||||
3 | the date of such increase in basis. | ||||||
4 | (5) The term "placed in service" shall have the same | ||||||
5 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
6 | (6) If during any taxable year ending on or before | ||||||
7 | December 31, 1996,
any property ceases to be qualified
| ||||||
8 | property in the hands of the taxpayer within 48 months | ||||||
9 | after being placed
in service, or the situs of any | ||||||
10 | qualified property is moved outside
Illinois within 48 | ||||||
11 | months after being placed in service, the tax imposed
under | ||||||
12 | subsections (a) and (b) of this Section for such taxable | ||||||
13 | year shall
be increased. Such increase shall be determined | ||||||
14 | by (i) recomputing the
investment credit which would have | ||||||
15 | been allowed for the year in which
credit for such property | ||||||
16 | was originally allowed by eliminating such
property from | ||||||
17 | such computation, and (ii) subtracting such recomputed | ||||||
18 | credit
from the amount of credit previously allowed. For | ||||||
19 | the purposes of this
paragraph (6), a reduction of the | ||||||
20 | basis of qualified property resulting
from a | ||||||
21 | redetermination of the purchase price shall be deemed a | ||||||
22 | disposition
of qualified property to the extent of such | ||||||
23 | reduction. | ||||||
24 | (7) Beginning with tax years ending after December 31, | ||||||
25 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
26 | subsection (h) and thereby is
granted a tax abatement and |
| |||||||
| |||||||
1 | the taxpayer relocates its entire facility in
violation of | ||||||
2 | the explicit terms and length of the contract under Section
| ||||||
3 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
4 | subsections
(a) and (b) of this Section shall be increased | ||||||
5 | for the taxable year
in which the taxpayer relocated its | ||||||
6 | facility by an amount equal to the
amount of credit | ||||||
7 | received by the taxpayer under this subsection (h). | ||||||
8 | (i) Credit for Personal Property Tax Replacement Income | ||||||
9 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
10 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
11 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
12 | (d) of this Section. This credit shall be computed by | ||||||
13 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
14 | Section by a fraction, the numerator
of which is base income | ||||||
15 | allocable to Illinois and the denominator of which is
Illinois | ||||||
16 | base income, and further multiplying the product by the tax | ||||||
17 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
18 | Any credit earned on or after December 31, 1986 under
this | ||||||
19 | subsection which is unused in the year
the credit is computed | ||||||
20 | because it exceeds the tax liability imposed by
subsections (a) | ||||||
21 | and (b) for that year (whether it exceeds the original
| ||||||
22 | liability or the liability as later amended) may be carried | ||||||
23 | forward and
applied to the tax liability imposed by subsections | ||||||
24 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
25 | year, provided that no credit may
be carried forward to any | ||||||
26 | year ending on or
after December 31, 2003. This credit shall be
|
| |||||||
| |||||||
1 | applied first to the earliest year for which there is a | ||||||
2 | liability. If
there is a credit under this subsection from more | ||||||
3 | than one tax year that is
available to offset a liability the | ||||||
4 | earliest credit arising under this
subsection shall be applied | ||||||
5 | first. | ||||||
6 | If, during any taxable year ending on or after December 31, | ||||||
7 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
8 | Section for which a taxpayer
has claimed a credit under this | ||||||
9 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
10 | shall also be reduced. Such reduction shall be
determined by | ||||||
11 | recomputing the credit to take into account the reduced tax
| ||||||
12 | imposed by subsections (c) and (d). If any portion of the
| ||||||
13 | reduced amount of credit has been carried to a different | ||||||
14 | taxable year, an
amended return shall be filed for such taxable | ||||||
15 | year to reduce the amount of
credit claimed. | ||||||
16 | (j) Training expense credit. Beginning with tax years | ||||||
17 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
18 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
19 | imposed by subsections (a) and (b) under this Section
for all | ||||||
20 | amounts paid or accrued, on behalf of all persons
employed by | ||||||
21 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
22 | of Illinois by a taxpayer, for educational or vocational | ||||||
23 | training in
semi-technical or technical fields or semi-skilled | ||||||
24 | or skilled fields, which
were deducted from gross income in the | ||||||
25 | computation of taxable income. The
credit against the tax | ||||||
26 | imposed by subsections (a) and (b) shall be 1.6% of
such |
| |||||||
| |||||||
1 | training expenses. For partners, shareholders of subchapter S
| ||||||
2 | corporations, and owners of limited liability companies, if the | ||||||
3 | liability
company is treated as a partnership for purposes of | ||||||
4 | federal and State income
taxation, there shall be allowed a | ||||||
5 | credit under this subsection (j) to be
determined in accordance | ||||||
6 | with the determination of income and distributive
share of | ||||||
7 | income under Sections 702 and 704 and subchapter S of the | ||||||
8 | Internal
Revenue Code. | ||||||
9 | Any credit allowed under this subsection which is unused in | ||||||
10 | the year
the credit is earned may be carried forward to each of | ||||||
11 | the 5 taxable
years following the year for which the credit is | ||||||
12 | first computed until it is
used. This credit shall be applied | ||||||
13 | first to the earliest year for which
there is a liability. If | ||||||
14 | there is a credit under this subsection from more
than one tax | ||||||
15 | year that is available to offset a liability the earliest
| ||||||
16 | credit arising under this subsection shall be applied first. No | ||||||
17 | carryforward
credit may be claimed in any tax year ending on or | ||||||
18 | after
December 31, 2003. | ||||||
19 | (k) Research and development credit. | ||||||
20 | For tax years ending after July 1, 1990 and prior to
| ||||||
21 | December 31, 2003, and beginning again for tax years ending on | ||||||
22 | or after December 31, 2004, and ending prior to January 1, | ||||||
23 | 2011, a taxpayer shall be
allowed a credit against the tax | ||||||
24 | imposed by subsections (a) and (b) of this
Section for | ||||||
25 | increasing research activities in this State. The credit
| ||||||
26 | allowed against the tax imposed by subsections (a) and (b) |
| |||||||
| |||||||
1 | shall be equal
to 6 1/2% of the qualifying expenditures for | ||||||
2 | increasing research activities
in this State. For partners, | ||||||
3 | shareholders of subchapter S corporations, and
owners of | ||||||
4 | limited liability companies, if the liability company is | ||||||
5 | treated as a
partnership for purposes of federal and State | ||||||
6 | income taxation, there shall be
allowed a credit under this | ||||||
7 | subsection to be determined in accordance with the
| ||||||
8 | determination of income and distributive share of income under | ||||||
9 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
10 | Code. It is the intention of the General Assembly that the | ||||||
11 | credit awarded under this subsection (k) be available for all | ||||||
12 | tax years ending on or after December, 31, 2004, including, but | ||||||
13 | not limited to, tax years ending on or after December, 31, 2004 | ||||||
14 | and prior to the effective date of this amendatory Act of the | ||||||
15 | 97th General Assembly. | ||||||
16 | For purposes of this subsection, "qualifying expenditures" | ||||||
17 | means the
qualifying expenditures as defined for the federal | ||||||
18 | credit for increasing
research activities which would be | ||||||
19 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
20 | which are conducted in this State, "qualifying
expenditures for | ||||||
21 | increasing research activities in this State" means the
excess | ||||||
22 | of qualifying expenditures for the taxable year in which | ||||||
23 | incurred
over qualifying expenditures for the base period, | ||||||
24 | "qualifying expenditures
for the base period" means the average | ||||||
25 | of the qualifying expenditures for
each year in the base | ||||||
26 | period, and "base period" means the 3 taxable years
immediately |
| |||||||
| |||||||
1 | preceding the taxable year for which the determination is
being | ||||||
2 | made. For purposes of this subsection, the term "qualifying | ||||||
3 | expenditures" also includes amounts paid or incurred for | ||||||
4 | ethanol and biodiesel research conducted in this State. | ||||||
5 | Any credit in excess of the tax liability for the taxable | ||||||
6 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
7 | unused credit shown on its final completed return carried over | ||||||
8 | as a credit
against the tax liability for the following 5 | ||||||
9 | taxable years or until it has
been fully used, whichever occurs | ||||||
10 | first; provided that no credit earned in a tax year ending | ||||||
11 | prior to December 31, 2003 may be carried forward to any year | ||||||
12 | ending on or after December 31, 2003 , and no credit may be | ||||||
13 | carried forward to any taxable year ending on or after January | ||||||
14 | 1, 2011 . | ||||||
15 | If an unused credit is carried forward to a given year from | ||||||
16 | 2 or more
earlier years, that credit arising in the earliest | ||||||
17 | year will be applied
first against the tax liability for the | ||||||
18 | given year. If a tax liability for
the given year still | ||||||
19 | remains, the credit from the next earliest year will
then be | ||||||
20 | applied, and so on, until all credits have been used or no tax
| ||||||
21 | liability for the given year remains. Any remaining unused | ||||||
22 | credit or
credits then will be carried forward to the next | ||||||
23 | following year in which a
tax liability is incurred, except | ||||||
24 | that no credit can be carried forward to
a year which is more | ||||||
25 | than 5 years after the year in which the expense for
which the | ||||||
26 | credit is given was incurred. |
| |||||||
| |||||||
1 | No inference shall be drawn from this amendatory Act of the | ||||||
2 | 91st General
Assembly in construing this Section for taxable | ||||||
3 | years beginning before January
1, 1999. | ||||||
4 | This subsection (k) is exempt from the provisions of | ||||||
5 | Section 250. | ||||||
6 | (l) Environmental Remediation Tax Credit. | ||||||
7 | (i) For tax years ending after December 31, 1997 and on | ||||||
8 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
9 | credit against the tax
imposed by subsections (a) and (b) | ||||||
10 | of this Section for certain amounts paid
for unreimbursed | ||||||
11 | eligible remediation costs, as specified in this | ||||||
12 | subsection.
For purposes of this Section, "unreimbursed | ||||||
13 | eligible remediation costs" means
costs approved by the | ||||||
14 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
15 | Section 58.14 of the Environmental Protection Act that were | ||||||
16 | paid in performing
environmental remediation at a site for | ||||||
17 | which a No Further Remediation Letter
was issued by the | ||||||
18 | Agency and recorded under Section 58.10 of the | ||||||
19 | Environmental
Protection Act. The credit must be claimed | ||||||
20 | for the taxable year in which
Agency approval of the | ||||||
21 | eligible remediation costs is granted. The credit is
not | ||||||
22 | available to any taxpayer if the taxpayer or any related | ||||||
23 | party caused or
contributed to, in any material respect, a | ||||||
24 | release of regulated substances on,
in, or under the site | ||||||
25 | that was identified and addressed by the remedial
action | ||||||
26 | pursuant to the Site Remediation Program of the |
| |||||||
| |||||||
1 | Environmental Protection
Act. After the Pollution Control | ||||||
2 | Board rules are adopted pursuant to the
Illinois | ||||||
3 | Administrative Procedure Act for the administration and | ||||||
4 | enforcement of
Section 58.9 of the Environmental | ||||||
5 | Protection Act, determinations as to credit
availability | ||||||
6 | for purposes of this Section shall be made consistent with | ||||||
7 | those
rules. For purposes of this Section, "taxpayer" | ||||||
8 | includes a person whose tax
attributes the taxpayer has | ||||||
9 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
10 | and "related party" includes the persons disallowed a | ||||||
11 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
12 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
13 | a related taxpayer, as well as any of its
partners. The | ||||||
14 | credit allowed against the tax imposed by subsections (a) | ||||||
15 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
16 | remediation costs in
excess of $100,000 per site, except | ||||||
17 | that the $100,000 threshold shall not apply
to any site | ||||||
18 | contained in an enterprise zone as determined by the | ||||||
19 | Department of
Commerce and Community Affairs (now | ||||||
20 | Department of Commerce and Economic Opportunity). The | ||||||
21 | total credit allowed shall not exceed
$40,000 per year with | ||||||
22 | a maximum total of $150,000 per site. For partners and
| ||||||
23 | shareholders of subchapter S corporations, there shall be | ||||||
24 | allowed a credit
under this subsection to be determined in | ||||||
25 | accordance with the determination of
income and | ||||||
26 | distributive share of income under Sections 702 and 704 and
|
| |||||||
| |||||||
1 | subchapter S of the Internal Revenue Code. | ||||||
2 | (ii) A credit allowed under this subsection that is | ||||||
3 | unused in the year
the credit is earned may be carried | ||||||
4 | forward to each of the 5 taxable years
following the year | ||||||
5 | for which the credit is first earned until it is used.
The | ||||||
6 | term "unused credit" does not include any amounts of | ||||||
7 | unreimbursed eligible
remediation costs in excess of the | ||||||
8 | maximum credit per site authorized under
paragraph (i). | ||||||
9 | This credit shall be applied first to the earliest year
for | ||||||
10 | which there is a liability. If there is a credit under this | ||||||
11 | subsection
from more than one tax year that is available to | ||||||
12 | offset a liability, the
earliest credit arising under this | ||||||
13 | subsection shall be applied first. A
credit allowed under | ||||||
14 | this subsection may be sold to a buyer as part of a sale
of | ||||||
15 | all or part of the remediation site for which the credit | ||||||
16 | was granted. The
purchaser of a remediation site and the | ||||||
17 | tax credit shall succeed to the unused
credit and remaining | ||||||
18 | carry-forward period of the seller. To perfect the
| ||||||
19 | transfer, the assignor shall record the transfer in the | ||||||
20 | chain of title for the
site and provide written notice to | ||||||
21 | the Director of the Illinois Department of
Revenue of the | ||||||
22 | assignor's intent to sell the remediation site and the | ||||||
23 | amount of
the tax credit to be transferred as a portion of | ||||||
24 | the sale. In no event may a
credit be transferred to any | ||||||
25 | taxpayer if the taxpayer or a related party would
not be | ||||||
26 | eligible under the provisions of subsection (i). |
| |||||||
| |||||||
1 | (iii) For purposes of this Section, the term "site" | ||||||
2 | shall have the same
meaning as under Section 58.2 of the | ||||||
3 | Environmental Protection Act. | ||||||
4 | (m) Education expense credit. Beginning with tax years | ||||||
5 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
6 | of one or more qualifying pupils shall be allowed a credit
| ||||||
7 | against the tax imposed by subsections (a) and (b) of this | ||||||
8 | Section for
qualified education expenses incurred on behalf of | ||||||
9 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
10 | qualified education expenses, but in no
event may the total | ||||||
11 | credit under this subsection claimed by a
family that is the
| ||||||
12 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
13 | credit under
this subsection reduce the taxpayer's liability | ||||||
14 | under this Act to less than
zero. This subsection is exempt | ||||||
15 | from the provisions of Section 250 of this
Act. | ||||||
16 | For purposes of this subsection: | ||||||
17 | "Qualifying pupils" means individuals who (i) are | ||||||
18 | residents of the State of
Illinois, (ii) are under the age of | ||||||
19 | 21 at the close of the school year for
which a credit is | ||||||
20 | sought, and (iii) during the school year for which a credit
is | ||||||
21 | sought were full-time pupils enrolled in a kindergarten through | ||||||
22 | twelfth
grade education program at any school, as defined in | ||||||
23 | this subsection. | ||||||
24 | "Qualified education expense" means the amount incurred
on | ||||||
25 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
26 | book fees, and
lab fees at the school in which the pupil is |
| |||||||
| |||||||
1 | enrolled during the regular school
year. | ||||||
2 | "School" means any public or nonpublic elementary or | ||||||
3 | secondary school in
Illinois that is in compliance with Title | ||||||
4 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
5 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
6 | except that nothing shall be construed to require a child to
| ||||||
7 | attend any particular public or nonpublic school to qualify for | ||||||
8 | the credit
under this Section. | ||||||
9 | "Custodian" means, with respect to qualifying pupils, an | ||||||
10 | Illinois resident
who is a parent, the parents, a legal | ||||||
11 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
12 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
13 | credit.
| ||||||
14 | (i) For tax years ending on or after December 31, 2006, | ||||||
15 | a taxpayer shall be allowed a credit against the tax | ||||||
16 | imposed by subsections (a) and (b) of this Section for | ||||||
17 | certain amounts paid for unreimbursed eligible remediation | ||||||
18 | costs, as specified in this subsection. For purposes of | ||||||
19 | this Section, "unreimbursed eligible remediation costs" | ||||||
20 | means costs approved by the Illinois Environmental | ||||||
21 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
22 | Environmental Protection Act that were paid in performing | ||||||
23 | environmental remediation at a site within a River Edge | ||||||
24 | Redevelopment Zone for which a No Further Remediation | ||||||
25 | Letter was issued by the Agency and recorded under Section | ||||||
26 | 58.10 of the Environmental Protection Act. The credit must |
| |||||||
| |||||||
1 | be claimed for the taxable year in which Agency approval of | ||||||
2 | the eligible remediation costs is granted. The credit is | ||||||
3 | not available to any taxpayer if the taxpayer or any | ||||||
4 | related party caused or contributed to, in any material | ||||||
5 | respect, a release of regulated substances on, in, or under | ||||||
6 | the site that was identified and addressed by the remedial | ||||||
7 | action pursuant to the Site Remediation Program of the | ||||||
8 | Environmental Protection Act. Determinations as to credit | ||||||
9 | availability for purposes of this Section shall be made | ||||||
10 | consistent with rules adopted by the Pollution Control | ||||||
11 | Board pursuant to the Illinois Administrative Procedure | ||||||
12 | Act for the administration and enforcement of Section 58.9 | ||||||
13 | of the Environmental Protection Act. For purposes of this | ||||||
14 | Section, "taxpayer" includes a person whose tax attributes | ||||||
15 | the taxpayer has succeeded to under Section 381 of the | ||||||
16 | Internal Revenue Code and "related party" includes the | ||||||
17 | persons disallowed a deduction for losses by paragraphs | ||||||
18 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
19 | Code by virtue of being a related taxpayer, as well as any | ||||||
20 | of its partners. The credit allowed against the tax imposed | ||||||
21 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
22 | unreimbursed eligible remediation costs in excess of | ||||||
23 | $100,000 per site. | ||||||
24 | (ii) A credit allowed under this subsection that is | ||||||
25 | unused in the year the credit is earned may be carried | ||||||
26 | forward to each of the 5 taxable years following the year |
| |||||||
| |||||||
1 | for which the credit is first earned until it is used. This | ||||||
2 | credit shall be applied first to the earliest year for | ||||||
3 | which there is a liability. If there is a credit under this | ||||||
4 | subsection from more than one tax year that is available to | ||||||
5 | offset a liability, the earliest credit arising under this | ||||||
6 | subsection shall be applied first. A credit allowed under | ||||||
7 | this subsection may be sold to a buyer as part of a sale of | ||||||
8 | all or part of the remediation site for which the credit | ||||||
9 | was granted. The purchaser of a remediation site and the | ||||||
10 | tax credit shall succeed to the unused credit and remaining | ||||||
11 | carry-forward period of the seller. To perfect the | ||||||
12 | transfer, the assignor shall record the transfer in the | ||||||
13 | chain of title for the site and provide written notice to | ||||||
14 | the Director of the Illinois Department of Revenue of the | ||||||
15 | assignor's intent to sell the remediation site and the | ||||||
16 | amount of the tax credit to be transferred as a portion of | ||||||
17 | the sale. In no event may a credit be transferred to any | ||||||
18 | taxpayer if the taxpayer or a related party would not be | ||||||
19 | eligible under the provisions of subsection (i). | ||||||
20 | (iii) For purposes of this Section, the term "site" | ||||||
21 | shall have the same meaning as under Section 58.2 of the | ||||||
22 | Environmental Protection Act. | ||||||
23 | (Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09; | ||||||
24 | 96-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff. | ||||||
25 | 1-13-11; 97-2, eff. 5-6-11.)
|
| |||||||
| |||||||
1 | (35 ILCS 5/207) (from Ch. 120, par. 2-207)
| ||||||
2 | Sec. 207. Net Losses.
| ||||||
3 | (a) If after applying all of the (i) modifications
provided | ||||||
4 | for in paragraph (2) of Section 203(b), paragraph (2) of | ||||||
5 | Section
203(c) and paragraph (2) of Section 203(d) and (ii) the | ||||||
6 | allocation and
apportionment provisions of Article 3 of this
| ||||||
7 | Act and subsection (c) of this Section, the taxpayer's net | ||||||
8 | income results in a loss;
| ||||||
9 | (1) for any taxable year ending prior to December 31, | ||||||
10 | 1999, such loss
shall be allowed
as a carryover or | ||||||
11 | carryback deduction in the manner allowed under Section
172 | ||||||
12 | of the Internal Revenue Code;
| ||||||
13 | (2) for any taxable year ending on or after December | ||||||
14 | 31, 1999 and prior
to December 31, 2003, such loss
shall be | ||||||
15 | allowed as a carryback to each of the 2 taxable years | ||||||
16 | preceding the
taxable year of such loss and shall be a net | ||||||
17 | operating loss carryover to each of the
20 taxable years | ||||||
18 | following the taxable year of such loss; and
| ||||||
19 | (3) for any taxable year ending on or after December | ||||||
20 | 31, 2003 and prior to December 31, 2011 , such loss
shall be | ||||||
21 | allowed as a net operating loss carryover to each of the 12 | ||||||
22 | taxable years
following the taxable year of such loss ; and | ||||||
23 | , except as provided in subsection (d).
| ||||||
24 | (4) for any taxable year ending on or after December | ||||||
25 | 31, 2011, such loss
shall be allowed as a carryback to each | ||||||
26 | of the 2 taxable years preceding the
taxable year of the |
| |||||||
| |||||||
1 | loss and shall be allowed as a net operating loss carryover | ||||||
2 | to each of the 20 taxable years
following the taxable year | ||||||
3 | of the loss. | ||||||
4 | (a-5) Election to relinquish carryback and order of | ||||||
5 | application of
losses.
| ||||||
6 | (A) For losses incurred in tax years ending prior | ||||||
7 | to December 31,
2003, the taxpayer may elect to | ||||||
8 | relinquish the entire carryback period
with respect to | ||||||
9 | such loss. Such election shall be made in the form and | ||||||
10 | manner
prescribed by the Department and shall be made | ||||||
11 | by the due date (including
extensions of time) for | ||||||
12 | filing the taxpayer's return for the taxable year in
| ||||||
13 | which such loss is incurred, and such election, once | ||||||
14 | made, shall be
irrevocable.
| ||||||
15 | (B) The entire amount of such loss shall be carried | ||||||
16 | to the earliest
taxable year to which such loss may be | ||||||
17 | carried. The amount of such loss which
shall be carried | ||||||
18 | to each of the other taxable years shall be the excess, | ||||||
19 | if
any, of the amount of such loss over the sum of the | ||||||
20 | deductions for carryback or
carryover of such loss | ||||||
21 | allowable for each of the prior taxable years to which
| ||||||
22 | such loss may be carried.
| ||||||
23 | (b) Any loss determined under subsection (a) of this | ||||||
24 | Section must be carried
back or carried forward in the same | ||||||
25 | manner for purposes of subsections (a)
and (b) of Section 201 | ||||||
26 | of this Act as for purposes of subsections (c) and
(d) of |
| |||||||
| |||||||
1 | Section 201 of this Act.
| ||||||
2 | (c) Notwithstanding any other provision of this Act, for | ||||||
3 | each taxable year ending on or after December 31, 2008, for | ||||||
4 | purposes of computing the loss for the taxable year under | ||||||
5 | subsection (a) of this Section and the deduction taken into | ||||||
6 | account for the taxable year for a net operating loss carryover | ||||||
7 | under paragraphs (1), (2), and (3) of subsection (a) of this | ||||||
8 | Section, the loss and net operating loss carryover shall be | ||||||
9 | reduced in an amount equal to the reduction to the net | ||||||
10 | operating loss and net operating loss carryover to the taxable | ||||||
11 | year, respectively, required under Section 108(b)(2)(A) of the | ||||||
12 | Internal Revenue Code, multiplied by a fraction, the numerator | ||||||
13 | of which is the amount of discharge of indebtedness income that | ||||||
14 | is excluded from gross income for the taxable year (but only if | ||||||
15 | the taxable year ends on or after December 31, 2008) under | ||||||
16 | Section 108(a) of the Internal Revenue Code and that would have | ||||||
17 | been allocated and apportioned to this State under Article 3 of | ||||||
18 | this Act but for that exclusion, and the denominator of which | ||||||
19 | is the total amount of discharge of indebtedness income | ||||||
20 | excluded from gross income under Section 108(a) of the Internal | ||||||
21 | Revenue Code for the taxable year. The reduction required under | ||||||
22 | this subsection (c) shall be made after the determination of | ||||||
23 | Illinois net income for the taxable year in which the | ||||||
24 | indebtedness is discharged.
| ||||||
25 | (d) (Blank). In the case of a corporation (other than a | ||||||
26 | Subchapter S corporation), no carryover deduction shall be |
| |||||||
| |||||||
1 | allowed under this Section for any taxable year ending after | ||||||
2 | December 31, 2010 and prior to December 31, 2014; provided | ||||||
3 | that, for purposes of determining the taxable years to which a | ||||||
4 | net loss may be carried under subsection (a) of this Section, | ||||||
5 | no taxable year for which a deduction is disallowed under this | ||||||
6 | subsection shall be counted. | ||||||
7 | (e) In the case of a residual interest holder in a real | ||||||
8 | estate mortgage investment conduit subject to Section 860E of | ||||||
9 | the Internal Revenue Code, the net loss in subsection (a) shall | ||||||
10 | be equal to: | ||||||
11 | (1) the amount computed under subsection (a), without | ||||||
12 | regard to this subsection (e), or if that amount is | ||||||
13 | positive, zero; | ||||||
14 | (2) minus an amount equal to the amount computed under | ||||||
15 | subsection (a), without regard to this subsection (e), | ||||||
16 | minus the amount that would be computed under subsection | ||||||
17 | (a) if the taxpayer's federal taxable income were computed | ||||||
18 | without regard to Section 860E of the Internal Revenue Code | ||||||
19 | and without regard to this subsection (e). | ||||||
20 | The modification in this subsection (e) is exempt from the | ||||||
21 | provisions of Section 250. | ||||||
22 | (Source: P.A. 96-1496, eff. 1-13-11; 97-507, eff. 8-23-11.)
| ||||||
23 | Section 15. The Retailers' Occupation Tax Act is amended by | ||||||
24 | changing Section 1f as follows: |
| |||||||
| |||||||
1 | (35 ILCS 120/1f) (from Ch. 120, par. 440f) | ||||||
2 | Sec. 1f. Except for High Impact Businesses, the exemption | ||||||
3 | stated in
Sections 1d and 1e of this Act shall only apply to | ||||||
4 | business enterprises which: | ||||||
5 | (1) either (i) make investments which cause the | ||||||
6 | creation of a minimum of
200 full-time equivalent jobs in | ||||||
7 | Illinois or (ii) make investments which
cause the retention | ||||||
8 | of a minimum of 2000 full-time jobs in Illinois or
(iii) | ||||||
9 | make investments of a minimum of $40,000,000 and retain at | ||||||
10 | least
90% of the jobs in place on the date on which the | ||||||
11 | exemption is granted and
for the duration of the exemption; | ||||||
12 | and | ||||||
13 | (2) are located in an Enterprise Zone established | ||||||
14 | pursuant to the
Illinois Enterprise Zone Act; and | ||||||
15 | (3) are certified by the Department of Commerce and | ||||||
16 | Economic Opportunity as
complying with the requirements | ||||||
17 | specified in clauses (1), (2) and (3). | ||||||
18 | Any business enterprise seeking to avail itself of the | ||||||
19 | exemptions stated
in Sections 1d or 1e, or both, shall make | ||||||
20 | application to the Department of
Commerce and Economic | ||||||
21 | Opportunity in such form and providing such information
as may | ||||||
22 | be prescribed by the Department of Commerce and Economic | ||||||
23 | Opportunity.
However, no business enterprise shall be | ||||||
24 | required, as a condition for
certification under clause (4) of | ||||||
25 | this Section, to attest that its decision
to invest under | ||||||
26 | clause (1) of this Section and to locate under clause (2)
of |
| |||||||
| |||||||
1 | this Section is predicated upon the availability of the | ||||||
2 | exemptions
authorized by Sections 1d or 1e. | ||||||
3 | The Department of Commerce and Economic Opportunity shall | ||||||
4 | determine whether
the business enterprise meets the criteria | ||||||
5 | prescribed in this Section. If
the Department of Commerce and | ||||||
6 | Economic Opportunity determines that such
business enterprise | ||||||
7 | meets the criteria, it shall issue a certificate of
eligibility | ||||||
8 | for exemption to the business enterprise in such form as is
| ||||||
9 | prescribed by the Department of Revenue. The Department of | ||||||
10 | Commerce and
Economic Opportunity shall act upon such | ||||||
11 | certification requests within 60 days
after receipt of the | ||||||
12 | application, and shall file with the Department of
Revenue a | ||||||
13 | copy of each certificate of eligibility for exemption. | ||||||
14 | The Department of Commerce and Economic Opportunity shall | ||||||
15 | have the power to
promulgate rules and regulations to carry out | ||||||
16 | the provisions of this
Section including the power to define | ||||||
17 | the amounts and types of eligible
investments not specified in | ||||||
18 | this Section which business enterprises
must make in order to | ||||||
19 | receive the exemptions stated in Sections 1d and 1e
of this | ||||||
20 | Act; and to require that any business enterprise that is | ||||||
21 | granted a
tax exemption repay the exempted tax if the business | ||||||
22 | enterprise fails to
comply with the terms and conditions of the | ||||||
23 | certification. | ||||||
24 | Such certificate of eligibility for exemption shall be | ||||||
25 | presented by the
business enterprise to its supplier when | ||||||
26 | making the initial purchase of
tangible personal property for |
| |||||||
| |||||||
1 | which an exemption is granted by Section 1d or
Section 1e, or | ||||||
2 | both, together with a certification by the business enterprise
| ||||||
3 | that such tangible personal property is exempt from taxation | ||||||
4 | under Section
1d or Section 1e and by indicating the exempt | ||||||
5 | status of each subsequent
purchase on the face of the purchase | ||||||
6 | order. | ||||||
7 | The Department of Commerce and Economic Opportunity shall | ||||||
8 | determine the
period during which such exemption from the taxes | ||||||
9 | imposed under this Act is
in effect which shall not exceed 50 | ||||||
10 | 20 years or the certified term of the enterprise zone | ||||||
11 | (including any extensions granted under subsection (c) of | ||||||
12 | Section 5.3 of the Illinois Enterprise Zone Act), whichever | ||||||
13 | period is shorter . | ||||||
14 | (Source: P.A. 94-793, eff. 5-19-06.) | ||||||
15 | Section 20. The Illinois Estate and Generation-Skipping | ||||||
16 | Transfer Tax Act is amended by changing Section 2 as follows:
| ||||||
17 | (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
| ||||||
18 | Sec. 2. Definitions.
| ||||||
19 | "Federal estate tax" means the tax due to the United States | ||||||
20 | with respect
to a taxable transfer under Chapter 11 of the | ||||||
21 | Internal Revenue Code.
| ||||||
22 | "Federal generation-skipping transfer tax" means the tax | ||||||
23 | due to the
United States with respect to a taxable transfer | ||||||
24 | under Chapter 13 of the
Internal Revenue Code.
|
| |||||||
| |||||||
1 | "Federal return" means the federal estate tax return with | ||||||
2 | respect to the
federal estate tax and means the federal | ||||||
3 | generation-skipping transfer tax
return
with respect to the | ||||||
4 | federal generation-skipping transfer tax.
| ||||||
5 | "Federal transfer tax" means the federal estate tax or the | ||||||
6 | federal
generation-skipping transfer tax.
| ||||||
7 | "Illinois estate tax" means the tax due to this State with | ||||||
8 | respect to a
taxable transfer.
| ||||||
9 | "Illinois generation-skipping transfer tax" means the tax | ||||||
10 | due to this State
with respect to a taxable transfer that gives | ||||||
11 | rise to a federal
generation-skipping transfer tax.
| ||||||
12 | "Illinois transfer tax" means the Illinois estate tax or | ||||||
13 | the Illinois
generation-skipping transfer tax.
| ||||||
14 | "Internal Revenue Code" means, unless otherwise provided, | ||||||
15 | the Internal
Revenue Code of 1986, as
amended from time to | ||||||
16 | time.
| ||||||
17 | "Non-resident trust" means a trust that is not a resident | ||||||
18 | of this State
for purposes of the Illinois Income Tax Act, as | ||||||
19 | amended from time to time.
| ||||||
20 | "Person" means and includes any individual, trust, estate, | ||||||
21 | partnership,
association, company or corporation.
| ||||||
22 | "Qualified heir" means a qualified heir as defined in | ||||||
23 | Section 2032A(e)(1)
of the Internal Revenue Code.
| ||||||
24 | "Resident trust" means a trust that is a resident of this | ||||||
25 | State for
purposes of the Illinois Income Tax Act, as amended | ||||||
26 | from time to time.
|
| |||||||
| |||||||
1 | "State" means any state, territory or possession of the | ||||||
2 | United States and
the District of Columbia.
| ||||||
3 | "State tax credit" means:
| ||||||
4 | (a) For persons dying on or after January 1, 2003 and
| ||||||
5 | through December 31, 2005, an amount
equal
to the full credit | ||||||
6 | calculable under Section 2011 or Section 2604 of the
Internal | ||||||
7 | Revenue
Code as the credit would have been computed and allowed | ||||||
8 | under the Internal
Revenue
Code as in effect on December 31, | ||||||
9 | 2001, without the reduction in the State
Death Tax
Credit as | ||||||
10 | provided in Section 2011(b)(2) or the termination of the State | ||||||
11 | Death
Tax Credit
as provided in Section 2011(f) as enacted by | ||||||
12 | the Economic Growth and Tax Relief
Reconciliation Act of 2001, | ||||||
13 | but recognizing the increased applicable exclusion
amount
| ||||||
14 | through December 31, 2005.
| ||||||
15 | (b) For persons dying after December 31, 2005 and on or | ||||||
16 | before December 31,
2009, and for persons dying after December | ||||||
17 | 31, 2010, an amount equal to the full
credit
calculable under | ||||||
18 | Section 2011 or 2604 of the Internal Revenue Code as the
credit | ||||||
19 | would
have been computed and allowed under the Internal Revenue | ||||||
20 | Code as in effect on
December 31, 2001, without the reduction | ||||||
21 | in the State Death Tax Credit as
provided in
Section 2011(b)(2) | ||||||
22 | or the termination of the State Death Tax Credit as provided
in
| ||||||
23 | Section 2011(f) as enacted by the Economic Growth and Tax | ||||||
24 | Relief Reconciliation
Act of
2001, but recognizing the | ||||||
25 | exclusion amount of only (i) $2,000,000 for persons dying after | ||||||
26 | December 31, 2005 and before the effective date of this |
| |||||||
| |||||||
1 | amendatory Act of the 97th General Assembly and (ii) $5,000,000 | ||||||
2 | for persons dying on or after the effective date of this | ||||||
3 | amendatory Act of the 97th General Assembly , and with reduction | ||||||
4 | to the adjusted taxable estate for any qualified terminable | ||||||
5 | interest property election as defined in subsection (b-1) of | ||||||
6 | this Section.
| ||||||
7 | (b-1) The person required to file the Illinois return may | ||||||
8 | elect on a timely filed Illinois return a marital deduction for | ||||||
9 | qualified terminable interest property under Section | ||||||
10 | 2056(b)(7) of the Internal Revenue Code for purposes of the | ||||||
11 | Illinois estate tax that is separate and independent of any | ||||||
12 | qualified terminable interest property election for federal | ||||||
13 | estate tax purposes. For purposes of the Illinois estate tax, | ||||||
14 | the inclusion of property in the gross estate of a surviving | ||||||
15 | spouse is the same as under Section 2044 of the Internal | ||||||
16 | Revenue Code. | ||||||
17 | In the case of any trust for which a State or federal | ||||||
18 | qualified terminable interest property election is made, the | ||||||
19 | trustee may not retain non-income producing assets for more | ||||||
20 | than a reasonable amount of time without the consent of the | ||||||
21 | surviving spouse.
| ||||||
22 | "Taxable transfer" means an event that gives rise to a | ||||||
23 | state tax credit,
including any credit as a result of the | ||||||
24 | imposition of an
additional tax under Section 2032A(c) of the | ||||||
25 | Internal Revenue Code.
| ||||||
26 | "Transferee" means a transferee within the meaning of |
| |||||||
| |||||||
1 | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | ||||||
2 | Code.
| ||||||
3 | "Transferred property" means:
| ||||||
4 | (1) With respect to a taxable transfer occurring at the | ||||||
5 | death of an
individual, the
deceased individual's gross | ||||||
6 | estate as defined in Section 2031 of the
Internal Revenue | ||||||
7 | Code.
| ||||||
8 | (2) With respect to a taxable transfer occurring as a | ||||||
9 | result of a
taxable termination as defined in Section | ||||||
10 | 2612(a) of the Internal Revenue Code,
the taxable amount | ||||||
11 | determined under Section 2622(a) of the Internal Revenue
| ||||||
12 | Code.
| ||||||
13 | (3) With respect to a taxable transfer occurring as a | ||||||
14 | result of a
taxable distribution as defined in Section | ||||||
15 | 2612(b) of the Internal Revenue Code,
the taxable amount | ||||||
16 | determined under Section 2621(a) of the Internal Revenue
| ||||||
17 | Code.
| ||||||
18 | (4) With respect to an event which causes the | ||||||
19 | imposition of an
additional estate tax under Section | ||||||
20 | 2032A(c) of the Internal Revenue Code,
the
qualified real | ||||||
21 | property that was disposed of or which ceased to be used | ||||||
22 | for
the qualified use, within the meaning of Section | ||||||
23 | 2032A(c)(1) of the Internal
Revenue Code.
| ||||||
24 | "Trust" includes a trust as defined in Section 2652(b)(1) | ||||||
25 | of the Internal
Revenue Code.
| ||||||
26 | (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11.)
|
| |||||||
| |||||||
1 | Section 25. The Public Utilities Act is amended by changing | ||||||
2 | Section 9-222.1 as follows: | ||||||
3 | (220 ILCS 5/9-222.1) (from Ch. 111 2/3, par. 9-222.1) | ||||||
4 | Sec. 9-222.1. A business enterprise which is located within | ||||||
5 | an area
designated by a county or municipality as an enterprise | ||||||
6 | zone pursuant to
the Illinois Enterprise Zone Act or located in | ||||||
7 | a federally designated
Foreign Trade Zone or Sub-Zone shall be | ||||||
8 | exempt from the additional charges
added to the business | ||||||
9 | enterprise's utility bills as a pass-on of municipal
and State | ||||||
10 | utility taxes under Sections 9-221 and 9-222 of this Act, to
| ||||||
11 | the extent such charges are exempted by ordinance adopted in | ||||||
12 | accordance
with paragraph (e) of Section 8-11-2 of the Illinois | ||||||
13 | Municipal Code in the
case of municipal utility taxes, and to | ||||||
14 | the extent such
charges are exempted by the percentage | ||||||
15 | specified by the Department of
Commerce and Economic | ||||||
16 | Opportunity in the case of State utility taxes, provided
such | ||||||
17 | business enterprise meets the following criteria: | ||||||
18 | (1) it (i) makes investments which cause the creation | ||||||
19 | of a
minimum of 200 full-time equivalent jobs in Illinois; | ||||||
20 | (ii) makes investments
of at least $175,000,000 which cause | ||||||
21 | the creation of a minimum of 150 full-time
equivalent jobs | ||||||
22 | in Illinois; (iii) makes investments that cause the | ||||||
23 | retention of a minimum of 300 full-time equivalent jobs in | ||||||
24 | the manufacturing sector, as defined by the North American |
| |||||||
| |||||||
1 | Industry Classification System, in an area in Illinois in | ||||||
2 | which the unemployment rate is above 9% and makes an | ||||||
3 | application to the Department within 3 months after the | ||||||
4 | effective date of this amendatory Act of the 96th General | ||||||
5 | Assembly and certifies relocation of the 300 full-time | ||||||
6 | equivalent jobs within 36 months after the application; | ||||||
7 | (iv) makes
investments which cause the retention of a | ||||||
8 | minimum of 1,000 full-time jobs
in Illinois; or (v) makes | ||||||
9 | an application to the Department within 2 months after the | ||||||
10 | effective date of this amendatory Act of the 96th General | ||||||
11 | Assembly and makes investments that cause the retention of | ||||||
12 | a minimum of 500 full-time equivalent jobs in 2009 and | ||||||
13 | 2010, 675 full-time jobs in Illinois in 2011, 850 full-time | ||||||
14 | jobs in 2012, and 1,000 full-time jobs in 2013, in the | ||||||
15 | manufacturing sector as defined by the North American | ||||||
16 | Industry Classification System; and | ||||||
17 | (2) it is either (i) located in an Enterprise Zone | ||||||
18 | established
pursuant to the Illinois Enterprise Zone Act or | ||||||
19 | (ii)
located in a federally designated Foreign Trade Zone | ||||||
20 | or Sub-Zone and is
designated a High Impact Business by the | ||||||
21 | Department of Commerce and
Economic Opportunity; and | ||||||
22 | (3) it is certified by the Department of Commerce and | ||||||
23 | Economic Opportunity as complying with the requirements | ||||||
24 | specified in clauses (1) and (2)
of this Section. | ||||||
25 | The Department of Commerce and Economic Opportunity shall | ||||||
26 | determine the
period during which such exemption from the |
| |||||||
| |||||||
1 | charges imposed under Section
9-222 is in effect which shall
| ||||||
2 | not exceed 50 30 years or the certified term of the enterprise | ||||||
3 | zone (including any extensions granted under subsection (c) of | ||||||
4 | Section 5.3 of the Illinois Enterprise Zone Act) ,
whichever | ||||||
5 | period is shorter, except that the exemption period for a | ||||||
6 | business enterprise qualifying under item (iii) of clause (1) | ||||||
7 | of this Section shall not exceed 50 30 years. | ||||||
8 | The Department of Commerce and Economic Opportunity shall | ||||||
9 | have the power to
promulgate rules and regulations to carry out | ||||||
10 | the provisions of this
Section including procedures for | ||||||
11 | complying with the requirements specified
in clauses (1) and | ||||||
12 | (2) of this Section and procedures
for applying for the | ||||||
13 | exemptions authorized under this Section; to
define the amounts | ||||||
14 | and types of eligible investments which
business enterprises | ||||||
15 | must make in order to receive State utility tax
exemptions | ||||||
16 | pursuant to Sections 9-222 and 9-222.1 of this Act; to approve
| ||||||
17 | such utility tax exemptions for business enterprises whose | ||||||
18 | investments are
not yet placed in service; and to require that | ||||||
19 | business enterprises granted
tax exemptions repay the exempted | ||||||
20 | tax should the business enterprise fail
to comply with the | ||||||
21 | terms and conditions of the certification. However, no
business | ||||||
22 | enterprise shall be required, as a condition for certification
| ||||||
23 | under clause (3) of this Section, to attest that its
decision | ||||||
24 | to invest under clause (1) of this Section and
to locate under | ||||||
25 | clause (2) of this Section is predicated
upon the availability | ||||||
26 | of the exemptions authorized by this Section. |
| |||||||
| |||||||
1 | A business enterprise shall be exempt, in whole
or in part, | ||||||
2 | from the pass-on charges of municipal utility taxes imposed
| ||||||
3 | under Section 9-221, only if it meets the criteria
specified in | ||||||
4 | clauses (1) through (3) of this Section and
the municipality | ||||||
5 | has adopted an ordinance authorizing the
exemption under | ||||||
6 | paragraph (e) of Section 8-11-2 of the Illinois Municipal
Code. | ||||||
7 | Upon certification of the business enterprises by the
| ||||||
8 | Department of Commerce and Economic Opportunity, the | ||||||
9 | Department of Commerce
and Economic Opportunity shall notify | ||||||
10 | the Department of Revenue of such
certification. The Department | ||||||
11 | of Revenue shall notify the public utilities
of the exemption | ||||||
12 | status of business enterprises from the pass-on charges of
| ||||||
13 | State and municipal utility taxes. Such exemption status shall | ||||||
14 | be
effective within 3 months after certification of the | ||||||
15 | business enterprise. | ||||||
16 | (Source: P.A. 96-716, eff. 8-25-09; 96-865, eff. 1-21-10.)
| ||||||
17 | Section 30. The Limited Liability Company Act is amended by | ||||||
18 | changing Section 50-10 as follows:
| ||||||
19 | (805 ILCS 180/50-10)
| ||||||
20 | Sec. 50-10. Fees.
| ||||||
21 | (a) The Secretary of State shall charge and collect in
| ||||||
22 | accordance with the provisions of this Act and rules
| ||||||
23 | promulgated under its authority all of the following:
| ||||||
24 | (1) Fees for filing documents.
|
| |||||||
| |||||||
1 | (2) Miscellaneous charges.
| ||||||
2 | (3) Fees for the sale of lists of filings and for | ||||||
3 | copies
of any documents.
| ||||||
4 | (b) The Secretary of State shall charge and collect for
all | ||||||
5 | of the following:
| ||||||
6 | (1) Filing an articles of organization (domestic), | ||||||
7 | application for
admission (foreign), and restated articles | ||||||
8 | of
organization (domestic), $500. Notwithstanding the | ||||||
9 | foregoing, the fee for filing an articles of organization | ||||||
10 | (domestic), application for admission (foreign) , and | ||||||
11 | restated articles of organization (domestic) in connection | ||||||
12 | with a limited liability company with a series pursuant to | ||||||
13 | Section 37-40 of this Act is $750.
| ||||||
14 | (1.5) Filing articles of organization (domestic), | ||||||
15 | restated articles of organization (domestic), and articles | ||||||
16 | of organization (domestic) and restated articles of | ||||||
17 | organization (domestic) in connection with a limited | ||||||
18 | liability company with a series pursuant to Section 37-40 | ||||||
19 | of this Act, $100.
| ||||||
20 | (2) Filing amendments (domestic or foreign), $150.
| ||||||
21 | (3) Filing articles of dissolution or
application
for | ||||||
22 | withdrawal, $100.
| ||||||
23 | (4) Filing an application to reserve a name, $300.
| ||||||
24 | (5) Renewal fee for reserved name, $100.
| ||||||
25 | (6) Filing a notice of a transfer of a reserved
name, | ||||||
26 | $100.
|
| |||||||
| |||||||
1 | (7) Registration of a name, $300.
| ||||||
2 | (8) Renewal of registration of a name, $100.
| ||||||
3 | (9) Filing an application for use of an assumed
name | ||||||
4 | under Section 1-20 of this Act, $150 for each
year or part | ||||||
5 | thereof ending in 0 or 5, $120 for each year or
part | ||||||
6 | thereof ending in 1 or 6, $90 for each year or part thereof | ||||||
7 | ending in 2 or
7, $60 for each year or part thereof ending | ||||||
8 | in 3 or 8, $30 for each year or
part thereof ending in 4 or | ||||||
9 | 9, and a renewal for each assumed name, $150.
| ||||||
10 | (10) Filing an application for change of an assumed
| ||||||
11 | name, $100.
| ||||||
12 | (11) Filing an annual report of a limited liability
| ||||||
13 | company or foreign limited liability company, $250, if
| ||||||
14 | filed as required by this Act, plus a penalty if
| ||||||
15 | delinquent. Notwithstanding the foregoing, the fee for | ||||||
16 | filing an annual report of a limited liability company or | ||||||
17 | foreign limited liability company is $250 plus $50 for each | ||||||
18 | series for which a certificate of designation has been | ||||||
19 | filed pursuant to Section 37-40 of this Act, plus a penalty | ||||||
20 | if delinquent.
| ||||||
21 | (12) Filing an application for reinstatement of a
| ||||||
22 | limited liability company or foreign limited liability
| ||||||
23 | company
$500.
| ||||||
24 | (13) Filing Articles of Merger, $100 plus $50 for each | ||||||
25 | party to the
merger in excess of the first 2 parties.
| ||||||
26 | (14) Filing an Agreement of Conversion or Statement of |
| |||||||
| |||||||
1 | Conversion, $100.
| ||||||
2 | (15) Filing a statement of change of address of | ||||||
3 | registered office or change of registered agent, or both, | ||||||
4 | or filing a statement of correction, $25.
| ||||||
5 | (16) Filing a petition for refund, $15.
| ||||||
6 | (17) Filing any other document, $100.
| ||||||
7 | (18) Filing a certificate of designation of a limited | ||||||
8 | liability company with a series pursuant to Section 37-40 | ||||||
9 | of this Act, $50.
| ||||||
10 | (c) The Secretary of State shall charge and collect all
of | ||||||
11 | the following:
| ||||||
12 | (1) For furnishing a copy or certified copy of any
| ||||||
13 | document, instrument, or paper relating to a limited
| ||||||
14 | liability company or foreign limited liability company,
or | ||||||
15 | for a certificate, $25.
| ||||||
16 | (2) For the transfer of information by computer
process | ||||||
17 | media to any purchaser, fees established by
rule.
| ||||||
18 | (Source: P.A. 94-605, eff. 1-1-06; 94-607, eff. 8-16-05; | ||||||
19 | 95-331, eff. 8-21-07.)
| ||||||
20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law. |