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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Secretary of State Act is amended by | ||||||||||||||||||||||||||||||||||||||||||||||
5 | changing Section 5 as follows:
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6 | (15 ILCS 305/5) (from Ch. 124, par. 5)
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7 | Sec. 5. It shall be the duty of the Secretary of State:
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8 | 1. To countersign and affix the seal of state to all | ||||||||||||||||||||||||||||||||||||||||||||||
9 | commissions
required by law to be issued by the Governor.
| ||||||||||||||||||||||||||||||||||||||||||||||
10 | 2. To make a register of all appointments by the Governor, | ||||||||||||||||||||||||||||||||||||||||||||||
11 | specifying
the person appointed, the office conferred, the date | ||||||||||||||||||||||||||||||||||||||||||||||
12 | of the appointment,
the date when bond or oath is taken and the | ||||||||||||||||||||||||||||||||||||||||||||||
13 | date filed. If Senate
confirmation is required, the date of the | ||||||||||||||||||||||||||||||||||||||||||||||
14 | confirmation shall be included
in the register.
| ||||||||||||||||||||||||||||||||||||||||||||||
15 | 3. To make proper indexes to public acts, resolutions, | ||||||||||||||||||||||||||||||||||||||||||||||
16 | papers and
documents in his office.
| ||||||||||||||||||||||||||||||||||||||||||||||
17 | 3-a. To review all rules of all State agencies adopted in | ||||||||||||||||||||||||||||||||||||||||||||||
18 | compliance
with the
codification system prescribed by the | ||||||||||||||||||||||||||||||||||||||||||||||
19 | Secretary. The review shall be for the
purposes and include all | ||||||||||||||||||||||||||||||||||||||||||||||
20 | the powers and duties provided in the Illinois
Administrative | ||||||||||||||||||||||||||||||||||||||||||||||
21 | Procedure Act. The Secretary of State shall cooperate with the
| ||||||||||||||||||||||||||||||||||||||||||||||
22 | Legislative Information System to insure the accuracy of the | ||||||||||||||||||||||||||||||||||||||||||||||
23 | text of the rules
maintained under the Legislative Information |
| |||||||
| |||||||
1 | System Act.
| ||||||
2 | 4. To give any person requiring the same paying the lawful | ||||||
3 | fees
therefor, a copy of any law, act, resolution, record or | ||||||
4 | paper in his
office, and attach thereto his certificate, under | ||||||
5 | the seal of the state.
| ||||||
6 | 5. To take charge of and preserve from waste, and keep in | ||||||
7 | repair,
the houses, lots, grounds and appurtenances, situated | ||||||
8 | in the City of
Springfield, and belonging to or occupied by the | ||||||
9 | State, the care of
which is not otherwise provided for by law, | ||||||
10 | and to take charge of and
preserve from waste, and keep in | ||||||
11 | repair, the houses, lots, grounds and
appurtenances, situated | ||||||
12 | in the State outside the City of Springfield
where such houses, | ||||||
13 | lots, grounds and appurtenances are occupied by the
Secretary | ||||||
14 | of State and no other State officer or agency.
| ||||||
15 | 6. To supervise the distribution of the laws.
| ||||||
16 | 7. To perform such other duties as may be required by law. | ||||||
17 | The
Secretary of State may, within appropriations authorized by | ||||||
18 | the General
Assembly, maintain offices in the State Capital and | ||||||
19 | in such other places
in the State as he may deem necessary to | ||||||
20 | properly carry out the powers
and duties vested in him by law.
| ||||||
21 | 8. In addition to all other authority granted to the | ||||||
22 | Secretary by law, subject to appropriation, to make grants or | ||||||
23 | otherwise provide assistance to, among others without | ||||||
24 | limitation, units of local government, school districts, | ||||||
25 | educational institutions, private agencies, not-for-profit | ||||||
26 | organizations, and for-profit entities for the health, safety, |
| |||||||
| |||||||
1 | and welfare of Illinois residents for purposes related to | ||||||
2 | education, transportation, construction, capital improvements, | ||||||
3 | social services, and any other lawful public purpose. Upon | ||||||
4 | request of the Secretary, all State agencies are mandated to | ||||||
5 | provide the Secretary with assistance in administering the | ||||||
6 | grants. | ||||||
7 | 9. To notify the Auditor General of any Public Act filed | ||||||
8 | with the Office of the Secretary of State making an | ||||||
9 | appropriation or transfer of funds from the State treasury. | ||||||
10 | This paragraph (9) applies only through June 30, 2015. | ||||||
11 | (Source: P.A. 96-37, eff. 7-13-09; 96-1496, eff. 1-13-11.)
| ||||||
12 | Section 10. The Illinois Income Tax Act is amended by | ||||||
13 | changing Sections 201, 207, 804, and 901 as follows: | ||||||
14 | (35 ILCS 5/201) (from Ch. 120, par. 2-201) | ||||||
15 | Sec. 201. Tax Imposed. | ||||||
16 | (a) In general. A tax measured by net income is hereby | ||||||
17 | imposed on every
individual, corporation, trust and estate for | ||||||
18 | each taxable year ending
after July 31, 1969 on the privilege | ||||||
19 | of earning or receiving income in or
as a resident of this | ||||||
20 | State. Such tax shall be in addition to all other
occupation or | ||||||
21 | privilege taxes imposed by this State or by any municipal
| ||||||
22 | corporation or political subdivision thereof. | ||||||
23 | (b) Rates. The tax imposed by subsection (a) of this | ||||||
24 | Section shall be
determined as follows, except as adjusted by |
| |||||||
| |||||||
1 | subsection (d-1): | ||||||
2 | (1) In the case of an individual, trust or estate, for | ||||||
3 | taxable years
ending prior to July 1, 1989, an amount equal | ||||||
4 | to 2 1/2% of the taxpayer's
net income for the taxable | ||||||
5 | year. | ||||||
6 | (2) In the case of an individual, trust or estate, for | ||||||
7 | taxable years
beginning prior to July 1, 1989 and ending | ||||||
8 | after June 30, 1989, an amount
equal to the sum of (i) 2 | ||||||
9 | 1/2% of the taxpayer's net income for the period
prior to | ||||||
10 | July 1, 1989, as calculated under Section 202.3, and (ii) | ||||||
11 | 3% of the
taxpayer's net income for the period after June | ||||||
12 | 30, 1989, as calculated
under Section 202.3. | ||||||
13 | (3) In the case of an individual, trust or estate, for | ||||||
14 | taxable years
beginning after June 30, 1989, and ending | ||||||
15 | prior to January 1, 2011, an amount equal to 3% of the | ||||||
16 | taxpayer's net
income for the taxable year. | ||||||
17 | (4) (Blank). In the case of an individual, trust, or | ||||||
18 | estate, for taxable years beginning prior to January 1, | ||||||
19 | 2011, and ending after December 31, 2010, an amount equal | ||||||
20 | to the sum of (i) 3% of the taxpayer's net income for the | ||||||
21 | period prior to January 1, 2011, as calculated under | ||||||
22 | Section 202.5, and (ii) 5% of the taxpayer's net income for | ||||||
23 | the period after December 31, 2010, as calculated under | ||||||
24 | Section 202.5. | ||||||
25 | (5) (Blank). In the case of an individual, trust, or | ||||||
26 | estate, for taxable years beginning on or after January 1, |
| |||||||
| |||||||
1 | 2011, and ending prior to January 1, 2015, an amount equal | ||||||
2 | to 5% of the taxpayer's net income for the taxable year. | ||||||
3 | (5.1) (Blank). In the case of an individual, trust, or | ||||||
4 | estate, for taxable years beginning prior to January 1, | ||||||
5 | 2015, and ending after December 31, 2014, an amount equal | ||||||
6 | to the sum of (i) 5% of the taxpayer's net income for the | ||||||
7 | period prior to January 1, 2015, as calculated under | ||||||
8 | Section 202.5, and (ii) 3.75% of the taxpayer's net income | ||||||
9 | for the period after December 31, 2014, as calculated under | ||||||
10 | Section 202.5. | ||||||
11 | (5.2) (Blank). In the case of an individual, trust, or | ||||||
12 | estate, for taxable years beginning on or after January 1, | ||||||
13 | 2015, and ending prior to January 1, 2025, an amount equal | ||||||
14 | to 3.75% of the taxpayer's net income for the taxable year. | ||||||
15 | (5.3) (Blank). In the case of an individual, trust, or | ||||||
16 | estate, for taxable years beginning prior to January 1, | ||||||
17 | 2025, and ending after December 31, 2024, an amount equal | ||||||
18 | to the sum of (i) 3.75% of the taxpayer's net income for | ||||||
19 | the period prior to January 1, 2025, as calculated under | ||||||
20 | Section 202.5, and (ii) 3.25% of the taxpayer's net income | ||||||
21 | for the period after December 31, 2024, as calculated under | ||||||
22 | Section 202.5. | ||||||
23 | (5.4) (Blank). In the case of an individual, trust, or | ||||||
24 | estate, for taxable years beginning on or after January 1, | ||||||
25 | 2025, an amount equal to 3.25% of the taxpayer's net income | ||||||
26 | for the taxable year. |
| |||||||
| |||||||
1 | (6) In the case of a corporation, for taxable years
| ||||||
2 | ending prior to July 1, 1989, an amount equal to 4% of the
| ||||||
3 | taxpayer's net income for the taxable year. | ||||||
4 | (7) In the case of a corporation, for taxable years | ||||||
5 | beginning prior to
July 1, 1989 and ending after June 30, | ||||||
6 | 1989, an amount equal to the sum of
(i) 4% of the | ||||||
7 | taxpayer's net income for the period prior to July 1, 1989,
| ||||||
8 | as calculated under Section 202.3, and (ii) 4.8% of the | ||||||
9 | taxpayer's net
income for the period after June 30, 1989, | ||||||
10 | as calculated under Section
202.3. | ||||||
11 | (8) In the case of a corporation, for taxable years | ||||||
12 | beginning after
June 30, 1989, and ending prior to January | ||||||
13 | 1, 2011, an amount equal to 4.8% of the taxpayer's net | ||||||
14 | income for the
taxable year. | ||||||
15 | (9) (Blank). In the case of a corporation, for taxable | ||||||
16 | years beginning prior to January 1, 2011, and ending after | ||||||
17 | December 31, 2010, an amount equal to the sum of (i) 4.8% | ||||||
18 | of the taxpayer's net income for the period prior to | ||||||
19 | January 1, 2011, as calculated under Section 202.5, and | ||||||
20 | (ii) 7% of the taxpayer's net income for the period after | ||||||
21 | December 31, 2010, as calculated under Section 202.5. | ||||||
22 | (10) (Blank). In the case of a corporation, for taxable | ||||||
23 | years beginning on or after January 1, 2011, and ending | ||||||
24 | prior to January 1, 2015, an amount equal to 7% of the | ||||||
25 | taxpayer's net income for the taxable year. | ||||||
26 | (11) (Blank). In the case of a corporation, for taxable |
| |||||||
| |||||||
1 | years beginning prior to January 1, 2015, and ending after | ||||||
2 | December 31, 2014, an amount equal to the sum of (i) 7% of | ||||||
3 | the taxpayer's net income for the period prior to January | ||||||
4 | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | ||||||
5 | of the taxpayer's net income for the period after December | ||||||
6 | 31, 2014, as calculated under Section 202.5. | ||||||
7 | (12) (Blank). In the case of a corporation, for taxable | ||||||
8 | years beginning on or after January 1, 2015, and ending | ||||||
9 | prior to January 1, 2025, an amount equal to 5.25% of the | ||||||
10 | taxpayer's net income for the taxable year. | ||||||
11 | (13) (Blank). In the case of a corporation, for taxable | ||||||
12 | years beginning prior to January 1, 2025, and ending after | ||||||
13 | December 31, 2024, an amount equal to the sum of (i) 5.25% | ||||||
14 | of the taxpayer's net income for the period prior to | ||||||
15 | January 1, 2025, as calculated under Section 202.5, and | ||||||
16 | (ii) 4.8% of the taxpayer's net income for the period after | ||||||
17 | December 31, 2024, as calculated under Section 202.5. | ||||||
18 | (14) (Blank). In the case of a corporation, for taxable | ||||||
19 | years beginning on or after January 1, 2025, an amount | ||||||
20 | equal to 4.8% of the taxpayer's net income for the taxable | ||||||
21 | year. | ||||||
22 | The rates under this subsection (b) are subject to the | ||||||
23 | provisions of Section 201.5. | ||||||
24 | (b-5) It is the intention of the General Assembly that this | ||||||
25 | amendatory Act of the 97th General Assembly supersedes Public | ||||||
26 | Act 96-1496. The rates under subsection (b) shall be deemed to |
| |||||||
| |||||||
1 | be 3% for individuals, trusts, and estates and 4.8% for | ||||||
2 | corporations for the entire period beginning on the effective | ||||||
3 | date of Public Act 96-1496 through the effective date of this | ||||||
4 | amendatory Act of the 97th General Assembly and thereafter. | ||||||
5 | (c) Personal Property Tax Replacement Income Tax.
| ||||||
6 | Beginning on July 1, 1979 and thereafter, in addition to such | ||||||
7 | income
tax, there is also hereby imposed the Personal Property | ||||||
8 | Tax Replacement
Income Tax measured by net income on every | ||||||
9 | corporation (including Subchapter
S corporations), partnership | ||||||
10 | and trust, for each taxable year ending after
June 30, 1979. | ||||||
11 | Such taxes are imposed on the privilege of earning or
receiving | ||||||
12 | income in or as a resident of this State. The Personal Property
| ||||||
13 | Tax Replacement Income Tax shall be in addition to the income | ||||||
14 | tax imposed
by subsections (a) and (b) of this Section and in | ||||||
15 | addition to all other
occupation or privilege taxes imposed by | ||||||
16 | this State or by any municipal
corporation or political | ||||||
17 | subdivision thereof. | ||||||
18 | (d) Additional Personal Property Tax Replacement Income | ||||||
19 | Tax Rates.
The personal property tax replacement income tax | ||||||
20 | imposed by this subsection
and subsection (c) of this Section | ||||||
21 | in the case of a corporation, other
than a Subchapter S | ||||||
22 | corporation and except as adjusted by subsection (d-1),
shall | ||||||
23 | be an additional amount equal to
2.85% of such taxpayer's net | ||||||
24 | income for the taxable year, except that
beginning on January | ||||||
25 | 1, 1981, and thereafter, the rate of 2.85% specified
in this | ||||||
26 | subsection shall be reduced to 2.5%, and in the case of a
|
| |||||||
| |||||||
1 | partnership, trust or a Subchapter S corporation shall be an | ||||||
2 | additional
amount equal to 1.5% of such taxpayer's net income | ||||||
3 | for the taxable year. | ||||||
4 | (d-1) Rate reduction for certain foreign insurers. In the | ||||||
5 | case of a
foreign insurer, as defined by Section 35A-5 of the | ||||||
6 | Illinois Insurance Code,
whose state or country of domicile | ||||||
7 | imposes on insurers domiciled in Illinois
a retaliatory tax | ||||||
8 | (excluding any insurer
whose premiums from reinsurance assumed | ||||||
9 | are 50% or more of its total insurance
premiums as determined | ||||||
10 | under paragraph (2) of subsection (b) of Section 304,
except | ||||||
11 | that for purposes of this determination premiums from | ||||||
12 | reinsurance do
not include premiums from inter-affiliate | ||||||
13 | reinsurance arrangements),
beginning with taxable years ending | ||||||
14 | on or after December 31, 1999,
the sum of
the rates of tax | ||||||
15 | imposed by subsections (b) and (d) shall be reduced (but not
| ||||||
16 | increased) to the rate at which the total amount of tax imposed | ||||||
17 | under this Act,
net of all credits allowed under this Act, | ||||||
18 | shall equal (i) the total amount of
tax that would be imposed | ||||||
19 | on the foreign insurer's net income allocable to
Illinois for | ||||||
20 | the taxable year by such foreign insurer's state or country of
| ||||||
21 | domicile if that net income were subject to all income taxes | ||||||
22 | and taxes
measured by net income imposed by such foreign | ||||||
23 | insurer's state or country of
domicile, net of all credits | ||||||
24 | allowed or (ii) a rate of zero if no such tax is
imposed on such | ||||||
25 | income by the foreign insurer's state of domicile.
For the | ||||||
26 | purposes of this subsection (d-1), an inter-affiliate includes |
| |||||||
| |||||||
1 | a
mutual insurer under common management. | ||||||
2 | (1) For the purposes of subsection (d-1), in no event | ||||||
3 | shall the sum of the
rates of tax imposed by subsections | ||||||
4 | (b) and (d) be reduced below the rate at
which the sum of: | ||||||
5 | (A) the total amount of tax imposed on such foreign | ||||||
6 | insurer under
this Act for a taxable year, net of all | ||||||
7 | credits allowed under this Act, plus | ||||||
8 | (B) the privilege tax imposed by Section 409 of the | ||||||
9 | Illinois Insurance
Code, the fire insurance company | ||||||
10 | tax imposed by Section 12 of the Fire
Investigation | ||||||
11 | Act, and the fire department taxes imposed under | ||||||
12 | Section 11-10-1
of the Illinois Municipal Code, | ||||||
13 | equals 1.25% for taxable years ending prior to December 31, | ||||||
14 | 2003, or
1.75% for taxable years ending on or after | ||||||
15 | December 31, 2003, of the net
taxable premiums written for | ||||||
16 | the taxable year,
as described by subsection (1) of Section | ||||||
17 | 409 of the Illinois Insurance Code.
This paragraph will in | ||||||
18 | no event increase the rates imposed under subsections
(b) | ||||||
19 | and (d). | ||||||
20 | (2) Any reduction in the rates of tax imposed by this | ||||||
21 | subsection shall be
applied first against the rates imposed | ||||||
22 | by subsection (b) and only after the
tax imposed by | ||||||
23 | subsection (a) net of all credits allowed under this | ||||||
24 | Section
other than the credit allowed under subsection (i) | ||||||
25 | has been reduced to zero,
against the rates imposed by | ||||||
26 | subsection (d). |
| |||||||
| |||||||
1 | This subsection (d-1) is exempt from the provisions of | ||||||
2 | Section 250. | ||||||
3 | (e) Investment credit. A taxpayer shall be allowed a credit
| ||||||
4 | against the Personal Property Tax Replacement Income Tax for
| ||||||
5 | investment in qualified property. | ||||||
6 | (1) A taxpayer shall be allowed a credit equal to .5% | ||||||
7 | of
the basis of qualified property placed in service during | ||||||
8 | the taxable year,
provided such property is placed in | ||||||
9 | service on or after
July 1, 1984. There shall be allowed an | ||||||
10 | additional credit equal
to .5% of the basis of qualified | ||||||
11 | property placed in service during the
taxable year, | ||||||
12 | provided such property is placed in service on or
after | ||||||
13 | July 1, 1986, and the taxpayer's base employment
within | ||||||
14 | Illinois has increased by 1% or more over the preceding | ||||||
15 | year as
determined by the taxpayer's employment records | ||||||
16 | filed with the
Illinois Department of Employment Security. | ||||||
17 | Taxpayers who are new to
Illinois shall be deemed to have | ||||||
18 | met the 1% growth in base employment for
the first year in | ||||||
19 | which they file employment records with the Illinois
| ||||||
20 | Department of Employment Security. The provisions added to | ||||||
21 | this Section by
Public Act 85-1200 (and restored by Public | ||||||
22 | Act 87-895) shall be
construed as declaratory of existing | ||||||
23 | law and not as a new enactment. If,
in any year, the | ||||||
24 | increase in base employment within Illinois over the
| ||||||
25 | preceding year is less than 1%, the additional credit shall | ||||||
26 | be limited to that
percentage times a fraction, the |
| |||||||
| |||||||
1 | numerator of which is .5% and the denominator
of which is | ||||||
2 | 1%, but shall not exceed .5%. The investment credit shall | ||||||
3 | not be
allowed to the extent that it would reduce a | ||||||
4 | taxpayer's liability in any tax
year below zero, nor may | ||||||
5 | any credit for qualified property be allowed for any
year | ||||||
6 | other than the year in which the property was placed in | ||||||
7 | service in
Illinois. For tax years ending on or after | ||||||
8 | December 31, 1987, and on or
before December 31, 1988, the | ||||||
9 | credit shall be allowed for the tax year in
which the | ||||||
10 | property is placed in service, or, if the amount of the | ||||||
11 | credit
exceeds the tax liability for that year, whether it | ||||||
12 | exceeds the original
liability or the liability as later | ||||||
13 | amended, such excess may be carried
forward and applied to | ||||||
14 | the tax liability of the 5 taxable years following
the | ||||||
15 | excess credit years if the taxpayer (i) makes investments | ||||||
16 | which cause
the creation of a minimum of 2,000 full-time | ||||||
17 | equivalent jobs in Illinois,
(ii) is located in an | ||||||
18 | enterprise zone established pursuant to the Illinois
| ||||||
19 | Enterprise Zone Act and (iii) is certified by the | ||||||
20 | Department of Commerce
and Community Affairs (now | ||||||
21 | Department of Commerce and Economic Opportunity) as | ||||||
22 | complying with the requirements specified in
clause (i) and | ||||||
23 | (ii) by July 1, 1986. The Department of Commerce and
| ||||||
24 | Community Affairs (now Department of Commerce and Economic | ||||||
25 | Opportunity) shall notify the Department of Revenue of all | ||||||
26 | such
certifications immediately. For tax years ending |
| |||||||
| |||||||
1 | after December 31, 1988,
the credit shall be allowed for | ||||||
2 | the tax year in which the property is
placed in service, | ||||||
3 | or, if the amount of the credit exceeds the tax
liability | ||||||
4 | for that year, whether it exceeds the original liability or | ||||||
5 | the
liability as later amended, such excess may be carried | ||||||
6 | forward and applied
to the tax liability of the 5 taxable | ||||||
7 | years following the excess credit
years. The credit shall | ||||||
8 | be applied to the earliest year for which there is
a | ||||||
9 | liability. If there is credit from more than one tax year | ||||||
10 | that is
available to offset a liability, earlier credit | ||||||
11 | shall be applied first. | ||||||
12 | (2) The term "qualified property" means property | ||||||
13 | which: | ||||||
14 | (A) is tangible, whether new or used, including | ||||||
15 | buildings and structural
components of buildings and | ||||||
16 | signs that are real property, but not including
land or | ||||||
17 | improvements to real property that are not a structural | ||||||
18 | component of a
building such as landscaping, sewer | ||||||
19 | lines, local access roads, fencing, parking
lots, and | ||||||
20 | other appurtenances; | ||||||
21 | (B) is depreciable pursuant to Section 167 of the | ||||||
22 | Internal Revenue Code,
except that "3-year property" | ||||||
23 | as defined in Section 168(c)(2)(A) of that
Code is not | ||||||
24 | eligible for the credit provided by this subsection | ||||||
25 | (e); | ||||||
26 | (C) is acquired by purchase as defined in Section |
| |||||||
| |||||||
1 | 179(d) of
the Internal Revenue Code; | ||||||
2 | (D) is used in Illinois by a taxpayer who is | ||||||
3 | primarily engaged in
manufacturing, or in mining coal | ||||||
4 | or fluorite, or in retailing, or was placed in service | ||||||
5 | on or after July 1, 2006 in a River Edge Redevelopment | ||||||
6 | Zone established pursuant to the River Edge | ||||||
7 | Redevelopment Zone Act; and | ||||||
8 | (E) has not previously been used in Illinois in | ||||||
9 | such a manner and by
such a person as would qualify for | ||||||
10 | the credit provided by this subsection
(e) or | ||||||
11 | subsection (f). | ||||||
12 | (3) For purposes of this subsection (e), | ||||||
13 | "manufacturing" means
the material staging and production | ||||||
14 | of tangible personal property by
procedures commonly | ||||||
15 | regarded as manufacturing, processing, fabrication, or
| ||||||
16 | assembling which changes some existing material into new | ||||||
17 | shapes, new
qualities, or new combinations. For purposes of | ||||||
18 | this subsection
(e) the term "mining" shall have the same | ||||||
19 | meaning as the term "mining" in
Section 613(c) of the | ||||||
20 | Internal Revenue Code. For purposes of this subsection
(e), | ||||||
21 | the term "retailing" means the sale of tangible personal | ||||||
22 | property for use or consumption and not for resale, or
| ||||||
23 | services rendered in conjunction with the sale of tangible | ||||||
24 | personal property for use or consumption and not for | ||||||
25 | resale. For purposes of this subsection (e), "tangible | ||||||
26 | personal property" has the same meaning as when that term |
| |||||||
| |||||||
1 | is used in the Retailers' Occupation Tax Act, and, for | ||||||
2 | taxable years ending after December 31, 2008, does not | ||||||
3 | include the generation, transmission, or distribution of | ||||||
4 | electricity. | ||||||
5 | (4) The basis of qualified property shall be the basis
| ||||||
6 | used to compute the depreciation deduction for federal | ||||||
7 | income tax purposes. | ||||||
8 | (5) If the basis of the property for federal income tax | ||||||
9 | depreciation
purposes is increased after it has been placed | ||||||
10 | in service in Illinois by
the taxpayer, the amount of such | ||||||
11 | increase shall be deemed property placed
in service on the | ||||||
12 | date of such increase in basis. | ||||||
13 | (6) The term "placed in service" shall have the same
| ||||||
14 | meaning as under Section 46 of the Internal Revenue Code. | ||||||
15 | (7) If during any taxable year, any property ceases to
| ||||||
16 | be qualified property in the hands of the taxpayer within | ||||||
17 | 48 months after
being placed in service, or the situs of | ||||||
18 | any qualified property is
moved outside Illinois within 48 | ||||||
19 | months after being placed in service, the
Personal Property | ||||||
20 | Tax Replacement Income Tax for such taxable year shall be
| ||||||
21 | increased. Such increase shall be determined by (i) | ||||||
22 | recomputing the
investment credit which would have been | ||||||
23 | allowed for the year in which
credit for such property was | ||||||
24 | originally allowed by eliminating such
property from such | ||||||
25 | computation and, (ii) subtracting such recomputed credit
| ||||||
26 | from the amount of credit previously allowed. For the |
| |||||||
| |||||||
1 | purposes of this
paragraph (7), a reduction of the basis of | ||||||
2 | qualified property resulting
from a redetermination of the | ||||||
3 | purchase price shall be deemed a disposition
of qualified | ||||||
4 | property to the extent of such reduction. | ||||||
5 | (8) Unless the investment credit is extended by law, | ||||||
6 | the
basis of qualified property shall not include costs | ||||||
7 | incurred after
December 31, 2013, except for costs incurred | ||||||
8 | pursuant to a binding
contract entered into on or before | ||||||
9 | December 31, 2013. | ||||||
10 | (9) Each taxable year ending before December 31, 2000, | ||||||
11 | a partnership may
elect to pass through to its
partners the | ||||||
12 | credits to which the partnership is entitled under this | ||||||
13 | subsection
(e) for the taxable year. A partner may use the | ||||||
14 | credit allocated to him or her
under this paragraph only | ||||||
15 | against the tax imposed in subsections (c) and (d) of
this | ||||||
16 | Section. If the partnership makes that election, those | ||||||
17 | credits shall be
allocated among the partners in the | ||||||
18 | partnership in accordance with the rules
set forth in | ||||||
19 | Section 704(b) of the Internal Revenue Code, and the rules
| ||||||
20 | promulgated under that Section, and the allocated amount of | ||||||
21 | the credits shall
be allowed to the partners for that | ||||||
22 | taxable year. The partnership shall make
this election on | ||||||
23 | its Personal Property Tax Replacement Income Tax return for
| ||||||
24 | that taxable year. The election to pass through the credits | ||||||
25 | shall be
irrevocable. | ||||||
26 | For taxable years ending on or after December 31, 2000, |
| |||||||
| |||||||
1 | a
partner that qualifies its
partnership for a subtraction | ||||||
2 | under subparagraph (I) of paragraph (2) of
subsection (d) | ||||||
3 | of Section 203 or a shareholder that qualifies a Subchapter | ||||||
4 | S
corporation for a subtraction under subparagraph (S) of | ||||||
5 | paragraph (2) of
subsection (b) of Section 203 shall be | ||||||
6 | allowed a credit under this subsection
(e) equal to its | ||||||
7 | share of the credit earned under this subsection (e) during
| ||||||
8 | the taxable year by the partnership or Subchapter S | ||||||
9 | corporation, determined in
accordance with the | ||||||
10 | determination of income and distributive share of
income | ||||||
11 | under Sections 702 and 704 and Subchapter S of the Internal | ||||||
12 | Revenue
Code. This paragraph is exempt from the provisions | ||||||
13 | of Section 250. | ||||||
14 | (f) Investment credit; Enterprise Zone; River Edge | ||||||
15 | Redevelopment Zone. | ||||||
16 | (1) A taxpayer shall be allowed a credit against the | ||||||
17 | tax imposed
by subsections (a) and (b) of this Section for | ||||||
18 | investment in qualified
property which is placed in service | ||||||
19 | in an Enterprise Zone created
pursuant to the Illinois | ||||||
20 | Enterprise Zone Act or, for property placed in service on | ||||||
21 | or after July 1, 2006, a River Edge Redevelopment Zone | ||||||
22 | established pursuant to the River Edge Redevelopment Zone | ||||||
23 | Act. For partners, shareholders
of Subchapter S | ||||||
24 | corporations, and owners of limited liability companies,
| ||||||
25 | if the liability company is treated as a partnership for | ||||||
26 | purposes of
federal and State income taxation, there shall |
| |||||||
| |||||||
1 | be allowed a credit under
this subsection (f) to be | ||||||
2 | determined in accordance with the determination
of income | ||||||
3 | and distributive share of income under Sections 702 and 704 | ||||||
4 | and
Subchapter S of the Internal Revenue Code. The credit | ||||||
5 | shall be .5% of the
basis for such property. The credit | ||||||
6 | shall be available only in the taxable
year in which the | ||||||
7 | property is placed in service in the Enterprise Zone or | ||||||
8 | River Edge Redevelopment Zone and
shall not be allowed to | ||||||
9 | the extent that it would reduce a taxpayer's
liability for | ||||||
10 | the tax imposed by subsections (a) and (b) of this Section | ||||||
11 | to
below zero. For tax years ending on or after December | ||||||
12 | 31, 1985, the credit
shall be allowed for the tax year in | ||||||
13 | which the property is placed in
service, or, if the amount | ||||||
14 | of the credit exceeds the tax liability for that
year, | ||||||
15 | whether it exceeds the original liability or the liability | ||||||
16 | as later
amended, such excess may be carried forward and | ||||||
17 | applied to the tax
liability of the 5 taxable years | ||||||
18 | following the excess credit year.
The credit shall be | ||||||
19 | applied to the earliest year for which there is a
| ||||||
20 | liability. If there is credit from more than one tax year | ||||||
21 | that is available
to offset a liability, the credit | ||||||
22 | accruing first in time shall be applied
first. | ||||||
23 | (2) The term qualified property means property which: | ||||||
24 | (A) is tangible, whether new or used, including | ||||||
25 | buildings and
structural components of buildings; | ||||||
26 | (B) is depreciable pursuant to Section 167 of the |
| |||||||
| |||||||
1 | Internal Revenue
Code, except that "3-year property" | ||||||
2 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
3 | eligible for the credit provided by this subsection | ||||||
4 | (f); | ||||||
5 | (C) is acquired by purchase as defined in Section | ||||||
6 | 179(d) of
the Internal Revenue Code; | ||||||
7 | (D) is used in the Enterprise Zone or River Edge | ||||||
8 | Redevelopment Zone by the taxpayer; and | ||||||
9 | (E) has not been previously used in Illinois in | ||||||
10 | such a manner and by
such a person as would qualify for | ||||||
11 | the credit provided by this subsection
(f) or | ||||||
12 | subsection (e). | ||||||
13 | (3) The basis of qualified property shall be the basis | ||||||
14 | used to compute
the depreciation deduction for federal | ||||||
15 | income tax purposes. | ||||||
16 | (4) If the basis of the property for federal income tax | ||||||
17 | depreciation
purposes is increased after it has been placed | ||||||
18 | in service in the Enterprise
Zone or River Edge | ||||||
19 | Redevelopment Zone by the taxpayer, the amount of such | ||||||
20 | increase shall be deemed property
placed in service on the | ||||||
21 | date of such increase in basis. | ||||||
22 | (5) The term "placed in service" shall have the same | ||||||
23 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
24 | (6) If during any taxable year, any property ceases to | ||||||
25 | be qualified
property in the hands of the taxpayer within | ||||||
26 | 48 months after being placed
in service, or the situs of |
| |||||||
| |||||||
1 | any qualified property is moved outside the
Enterprise Zone | ||||||
2 | or River Edge Redevelopment Zone within 48 months after | ||||||
3 | being placed in service, the tax
imposed under subsections | ||||||
4 | (a) and (b) of this Section for such taxable year
shall be | ||||||
5 | increased. Such increase shall be determined by (i) | ||||||
6 | recomputing
the investment credit which would have been | ||||||
7 | allowed for the year in which
credit for such property was | ||||||
8 | originally allowed by eliminating such
property from such | ||||||
9 | computation, and (ii) subtracting such recomputed credit
| ||||||
10 | from the amount of credit previously allowed. For the | ||||||
11 | purposes of this
paragraph (6), a reduction of the basis of | ||||||
12 | qualified property resulting
from a redetermination of the | ||||||
13 | purchase price shall be deemed a disposition
of qualified | ||||||
14 | property to the extent of such reduction. | ||||||
15 | (7) There shall be allowed an additional credit equal | ||||||
16 | to 0.5% of the basis of qualified property placed in | ||||||
17 | service during the taxable year in a River Edge | ||||||
18 | Redevelopment Zone, provided such property is placed in | ||||||
19 | service on or after July 1, 2006, and the taxpayer's base | ||||||
20 | employment within Illinois has increased by 1% or more over | ||||||
21 | the preceding year as determined by the taxpayer's | ||||||
22 | employment records filed with the Illinois Department of | ||||||
23 | Employment Security. Taxpayers who are new to Illinois | ||||||
24 | shall be deemed to have met the 1% growth in base | ||||||
25 | employment for the first year in which they file employment | ||||||
26 | records with the Illinois Department of Employment |
| |||||||
| |||||||
1 | Security. If, in any year, the increase in base employment | ||||||
2 | within Illinois over the preceding year is less than 1%, | ||||||
3 | the additional credit shall be limited to that percentage | ||||||
4 | times a fraction, the numerator of which is 0.5% and the | ||||||
5 | denominator of which is 1%, but shall not exceed 0.5%.
| ||||||
6 | (g) Jobs Tax Credit; Enterprise Zone, River Edge | ||||||
7 | Redevelopment Zone, and Foreign Trade Zone or Sub-Zone. | ||||||
8 | (1) A taxpayer conducting a trade or business in an | ||||||
9 | enterprise zone
or a High Impact Business designated by the | ||||||
10 | Department of Commerce and
Economic Opportunity or for | ||||||
11 | taxable years ending on or after December 31, 2006, in a | ||||||
12 | River Edge Redevelopment Zone conducting a trade or | ||||||
13 | business in a federally designated
Foreign Trade Zone or | ||||||
14 | Sub-Zone shall be allowed a credit against the tax
imposed | ||||||
15 | by subsections (a) and (b) of this Section in the amount of | ||||||
16 | $500
per eligible employee hired to work in the zone during | ||||||
17 | the taxable year. | ||||||
18 | (2) To qualify for the credit: | ||||||
19 | (A) the taxpayer must hire 5 or more eligible | ||||||
20 | employees to work in an
enterprise zone, River Edge | ||||||
21 | Redevelopment Zone, or federally designated Foreign | ||||||
22 | Trade Zone or Sub-Zone
during the taxable year; | ||||||
23 | (B) the taxpayer's total employment within the | ||||||
24 | enterprise zone, River Edge Redevelopment Zone, or
| ||||||
25 | federally designated Foreign Trade Zone or Sub-Zone | ||||||
26 | must
increase by 5 or more full-time employees beyond |
| |||||||
| |||||||
1 | the total employed in that
zone at the end of the | ||||||
2 | previous tax year for which a jobs tax
credit under | ||||||
3 | this Section was taken, or beyond the total employed by | ||||||
4 | the
taxpayer as of December 31, 1985, whichever is | ||||||
5 | later; and | ||||||
6 | (C) the eligible employees must be employed 180 | ||||||
7 | consecutive days in
order to be deemed hired for | ||||||
8 | purposes of this subsection. | ||||||
9 | (3) An "eligible employee" means an employee who is: | ||||||
10 | (A) Certified by the Department of Commerce and | ||||||
11 | Economic Opportunity
as "eligible for services" | ||||||
12 | pursuant to regulations promulgated in
accordance with | ||||||
13 | Title II of the Job Training Partnership Act, Training
| ||||||
14 | Services for the Disadvantaged or Title III of the Job | ||||||
15 | Training Partnership
Act, Employment and Training | ||||||
16 | Assistance for Dislocated Workers Program. | ||||||
17 | (B) Hired after the enterprise zone, River Edge | ||||||
18 | Redevelopment Zone, or federally designated Foreign
| ||||||
19 | Trade Zone or Sub-Zone was designated or the trade or
| ||||||
20 | business was located in that zone, whichever is later. | ||||||
21 | (C) Employed in the enterprise zone, River Edge | ||||||
22 | Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | ||||||
23 | An employee is employed in an
enterprise zone or | ||||||
24 | federally designated Foreign Trade Zone or Sub-Zone
if | ||||||
25 | his services are rendered there or it is the base of
| ||||||
26 | operations for the services performed. |
| |||||||
| |||||||
1 | (D) A full-time employee working 30 or more hours | ||||||
2 | per week. | ||||||
3 | (4) For tax years ending on or after December 31, 1985 | ||||||
4 | and prior to
December 31, 1988, the credit shall be allowed | ||||||
5 | for the tax year in which
the eligible employees are hired. | ||||||
6 | For tax years ending on or after
December 31, 1988, the | ||||||
7 | credit shall be allowed for the tax year immediately
| ||||||
8 | following the tax year in which the eligible employees are | ||||||
9 | hired. If the
amount of the credit exceeds the tax | ||||||
10 | liability for that year, whether it
exceeds the original | ||||||
11 | liability or the liability as later amended, such
excess | ||||||
12 | may be carried forward and applied to the tax liability of | ||||||
13 | the 5
taxable years following the excess credit year. The | ||||||
14 | credit shall be
applied to the earliest year for which | ||||||
15 | there is a liability. If there is
credit from more than one | ||||||
16 | tax year that is available to offset a liability,
earlier | ||||||
17 | credit shall be applied first. | ||||||
18 | (5) The Department of Revenue shall promulgate such | ||||||
19 | rules and regulations
as may be deemed necessary to carry | ||||||
20 | out the purposes of this subsection (g). | ||||||
21 | (6) The credit shall be available for eligible | ||||||
22 | employees hired on or
after January 1, 1986. | ||||||
23 | (h) Investment credit; High Impact Business. | ||||||
24 | (1) Subject to subsections (b) and (b-5) of Section
5.5 | ||||||
25 | of the Illinois Enterprise Zone Act, a taxpayer shall be | ||||||
26 | allowed a credit
against the tax imposed by subsections (a) |
| |||||||
| |||||||
1 | and (b) of this Section for
investment in qualified
| ||||||
2 | property which is placed in service by a Department of | ||||||
3 | Commerce and Economic Opportunity
designated High Impact | ||||||
4 | Business. The credit shall be .5% of the basis
for such | ||||||
5 | property. The credit shall not be available (i) until the | ||||||
6 | minimum
investments in qualified property set forth in | ||||||
7 | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| ||||||
8 | Enterprise Zone Act have been satisfied
or (ii) until the | ||||||
9 | time authorized in subsection (b-5) of the Illinois
| ||||||
10 | Enterprise Zone Act for entities designated as High Impact | ||||||
11 | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | ||||||
12 | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | ||||||
13 | Act, and shall not be allowed to the extent that it would
| ||||||
14 | reduce a taxpayer's liability for the tax imposed by | ||||||
15 | subsections (a) and (b) of
this Section to below zero. The | ||||||
16 | credit applicable to such investments shall be
taken in the | ||||||
17 | taxable year in which such investments have been completed. | ||||||
18 | The
credit for additional investments beyond the minimum | ||||||
19 | investment by a designated
high impact business authorized | ||||||
20 | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | ||||||
21 | Enterprise Zone Act shall be available only in the taxable | ||||||
22 | year in
which the property is placed in service and shall | ||||||
23 | not be allowed to the extent
that it would reduce a | ||||||
24 | taxpayer's liability for the tax imposed by subsections
(a) | ||||||
25 | and (b) of this Section to below zero.
For tax years ending | ||||||
26 | on or after December 31, 1987, the credit shall be
allowed |
| |||||||
| |||||||
1 | for the tax year in which the property is placed in | ||||||
2 | service, or, if
the amount of the credit exceeds the tax | ||||||
3 | liability for that year, whether
it exceeds the original | ||||||
4 | liability or the liability as later amended, such
excess | ||||||
5 | may be carried forward and applied to the tax liability of | ||||||
6 | the 5
taxable years following the excess credit year. The | ||||||
7 | credit shall be
applied to the earliest year for which | ||||||
8 | there is a liability. If there is
credit from more than one | ||||||
9 | tax year that is available to offset a liability,
the | ||||||
10 | credit accruing first in time shall be applied first. | ||||||
11 | Changes made in this subdivision (h)(1) by Public Act | ||||||
12 | 88-670
restore changes made by Public Act 85-1182 and | ||||||
13 | reflect existing law. | ||||||
14 | (2) The term qualified property means property which: | ||||||
15 | (A) is tangible, whether new or used, including | ||||||
16 | buildings and
structural components of buildings; | ||||||
17 | (B) is depreciable pursuant to Section 167 of the | ||||||
18 | Internal Revenue
Code, except that "3-year property" | ||||||
19 | as defined in Section 168(c)(2)(A) of
that Code is not | ||||||
20 | eligible for the credit provided by this subsection | ||||||
21 | (h); | ||||||
22 | (C) is acquired by purchase as defined in Section | ||||||
23 | 179(d) of the
Internal Revenue Code; and | ||||||
24 | (D) is not eligible for the Enterprise Zone | ||||||
25 | Investment Credit provided
by subsection (f) of this | ||||||
26 | Section. |
| |||||||
| |||||||
1 | (3) The basis of qualified property shall be the basis | ||||||
2 | used to compute
the depreciation deduction for federal | ||||||
3 | income tax purposes. | ||||||
4 | (4) If the basis of the property for federal income tax | ||||||
5 | depreciation
purposes is increased after it has been placed | ||||||
6 | in service in a federally
designated Foreign Trade Zone or | ||||||
7 | Sub-Zone located in Illinois by the taxpayer,
the amount of | ||||||
8 | such increase shall be deemed property placed in service on
| ||||||
9 | the date of such increase in basis. | ||||||
10 | (5) The term "placed in service" shall have the same | ||||||
11 | meaning as under
Section 46 of the Internal Revenue Code. | ||||||
12 | (6) If during any taxable year ending on or before | ||||||
13 | December 31, 1996,
any property ceases to be qualified
| ||||||
14 | property in the hands of the taxpayer within 48 months | ||||||
15 | after being placed
in service, or the situs of any | ||||||
16 | qualified property is moved outside
Illinois within 48 | ||||||
17 | months after being placed in service, the tax imposed
under | ||||||
18 | subsections (a) and (b) of this Section for such taxable | ||||||
19 | year shall
be increased. Such increase shall be determined | ||||||
20 | by (i) recomputing the
investment credit which would have | ||||||
21 | been allowed for the year in which
credit for such property | ||||||
22 | was originally allowed by eliminating such
property from | ||||||
23 | such computation, and (ii) subtracting such recomputed | ||||||
24 | credit
from the amount of credit previously allowed. For | ||||||
25 | the purposes of this
paragraph (6), a reduction of the | ||||||
26 | basis of qualified property resulting
from a |
| |||||||
| |||||||
1 | redetermination of the purchase price shall be deemed a | ||||||
2 | disposition
of qualified property to the extent of such | ||||||
3 | reduction. | ||||||
4 | (7) Beginning with tax years ending after December 31, | ||||||
5 | 1996, if a
taxpayer qualifies for the credit under this | ||||||
6 | subsection (h) and thereby is
granted a tax abatement and | ||||||
7 | the taxpayer relocates its entire facility in
violation of | ||||||
8 | the explicit terms and length of the contract under Section
| ||||||
9 | 18-183 of the Property Tax Code, the tax imposed under | ||||||
10 | subsections
(a) and (b) of this Section shall be increased | ||||||
11 | for the taxable year
in which the taxpayer relocated its | ||||||
12 | facility by an amount equal to the
amount of credit | ||||||
13 | received by the taxpayer under this subsection (h). | ||||||
14 | (i) Credit for Personal Property Tax Replacement Income | ||||||
15 | Tax.
For tax years ending prior to December 31, 2003, a credit | ||||||
16 | shall be allowed
against the tax imposed by
subsections (a) and | ||||||
17 | (b) of this Section for the tax imposed by subsections (c)
and | ||||||
18 | (d) of this Section. This credit shall be computed by | ||||||
19 | multiplying the tax
imposed by subsections (c) and (d) of this | ||||||
20 | Section by a fraction, the numerator
of which is base income | ||||||
21 | allocable to Illinois and the denominator of which is
Illinois | ||||||
22 | base income, and further multiplying the product by the tax | ||||||
23 | rate
imposed by subsections (a) and (b) of this Section. | ||||||
24 | Any credit earned on or after December 31, 1986 under
this | ||||||
25 | subsection which is unused in the year
the credit is computed | ||||||
26 | because it exceeds the tax liability imposed by
subsections (a) |
| |||||||
| |||||||
1 | and (b) for that year (whether it exceeds the original
| ||||||
2 | liability or the liability as later amended) may be carried | ||||||
3 | forward and
applied to the tax liability imposed by subsections | ||||||
4 | (a) and (b) of the 5
taxable years following the excess credit | ||||||
5 | year, provided that no credit may
be carried forward to any | ||||||
6 | year ending on or
after December 31, 2003. This credit shall be
| ||||||
7 | applied first to the earliest year for which there is a | ||||||
8 | liability. If
there is a credit under this subsection from more | ||||||
9 | than one tax year that is
available to offset a liability the | ||||||
10 | earliest credit arising under this
subsection shall be applied | ||||||
11 | first. | ||||||
12 | If, during any taxable year ending on or after December 31, | ||||||
13 | 1986, the
tax imposed by subsections (c) and (d) of this | ||||||
14 | Section for which a taxpayer
has claimed a credit under this | ||||||
15 | subsection (i) is reduced, the amount of
credit for such tax | ||||||
16 | shall also be reduced. Such reduction shall be
determined by | ||||||
17 | recomputing the credit to take into account the reduced tax
| ||||||
18 | imposed by subsections (c) and (d). If any portion of the
| ||||||
19 | reduced amount of credit has been carried to a different | ||||||
20 | taxable year, an
amended return shall be filed for such taxable | ||||||
21 | year to reduce the amount of
credit claimed. | ||||||
22 | (j) Training expense credit. Beginning with tax years | ||||||
23 | ending on or
after December 31, 1986 and prior to December 31, | ||||||
24 | 2003, a taxpayer shall be
allowed a credit against the
tax | ||||||
25 | imposed by subsections (a) and (b) under this Section
for all | ||||||
26 | amounts paid or accrued, on behalf of all persons
employed by |
| |||||||
| |||||||
1 | the taxpayer in Illinois or Illinois residents employed
outside | ||||||
2 | of Illinois by a taxpayer, for educational or vocational | ||||||
3 | training in
semi-technical or technical fields or semi-skilled | ||||||
4 | or skilled fields, which
were deducted from gross income in the | ||||||
5 | computation of taxable income. The
credit against the tax | ||||||
6 | imposed by subsections (a) and (b) shall be 1.6% of
such | ||||||
7 | training expenses. For partners, shareholders of subchapter S
| ||||||
8 | corporations, and owners of limited liability companies, if the | ||||||
9 | liability
company is treated as a partnership for purposes of | ||||||
10 | federal and State income
taxation, there shall be allowed a | ||||||
11 | credit under this subsection (j) to be
determined in accordance | ||||||
12 | with the determination of income and distributive
share of | ||||||
13 | income under Sections 702 and 704 and subchapter S of the | ||||||
14 | Internal
Revenue Code. | ||||||
15 | Any credit allowed under this subsection which is unused in | ||||||
16 | the year
the credit is earned may be carried forward to each of | ||||||
17 | the 5 taxable
years following the year for which the credit is | ||||||
18 | first computed until it is
used. This credit shall be applied | ||||||
19 | first to the earliest year for which
there is a liability. If | ||||||
20 | there is a credit under this subsection from more
than one tax | ||||||
21 | year that is available to offset a liability the earliest
| ||||||
22 | credit arising under this subsection shall be applied first. No | ||||||
23 | carryforward
credit may be claimed in any tax year ending on or | ||||||
24 | after
December 31, 2003. | ||||||
25 | (k) Research and development credit. | ||||||
26 | For tax years ending after July 1, 1990 and prior to
|
| |||||||
| |||||||
1 | December 31, 2003, and beginning again for tax years ending on | ||||||
2 | or after December 31, 2004, and ending prior to January 1, | ||||||
3 | 2011, a taxpayer shall be
allowed a credit against the tax | ||||||
4 | imposed by subsections (a) and (b) of this
Section for | ||||||
5 | increasing research activities in this State. The credit
| ||||||
6 | allowed against the tax imposed by subsections (a) and (b) | ||||||
7 | shall be equal
to 6 1/2% of the qualifying expenditures for | ||||||
8 | increasing research activities
in this State. For partners, | ||||||
9 | shareholders of subchapter S corporations, and
owners of | ||||||
10 | limited liability companies, if the liability company is | ||||||
11 | treated as a
partnership for purposes of federal and State | ||||||
12 | income taxation, there shall be
allowed a credit under this | ||||||
13 | subsection to be determined in accordance with the
| ||||||
14 | determination of income and distributive share of income under | ||||||
15 | Sections 702 and
704 and subchapter S of the Internal Revenue | ||||||
16 | Code. | ||||||
17 | For purposes of this subsection, "qualifying expenditures" | ||||||
18 | means the
qualifying expenditures as defined for the federal | ||||||
19 | credit for increasing
research activities which would be | ||||||
20 | allowable under Section 41 of the
Internal Revenue Code and | ||||||
21 | which are conducted in this State, "qualifying
expenditures for | ||||||
22 | increasing research activities in this State" means the
excess | ||||||
23 | of qualifying expenditures for the taxable year in which | ||||||
24 | incurred
over qualifying expenditures for the base period, | ||||||
25 | "qualifying expenditures
for the base period" means the average | ||||||
26 | of the qualifying expenditures for
each year in the base |
| |||||||
| |||||||
1 | period, and "base period" means the 3 taxable years
immediately | ||||||
2 | preceding the taxable year for which the determination is
being | ||||||
3 | made. | ||||||
4 | Any credit in excess of the tax liability for the taxable | ||||||
5 | year
may be carried forward. A taxpayer may elect to have the
| ||||||
6 | unused credit shown on its final completed return carried over | ||||||
7 | as a credit
against the tax liability for the following 5 | ||||||
8 | taxable years or until it has
been fully used, whichever occurs | ||||||
9 | first; provided that no credit earned in a tax year ending | ||||||
10 | prior to December 31, 2003 may be carried forward to any year | ||||||
11 | ending on or after December 31, 2003, and no credit may be | ||||||
12 | carried forward to any taxable year ending on or after January | ||||||
13 | 1, 2011. | ||||||
14 | If an unused credit is carried forward to a given year from | ||||||
15 | 2 or more
earlier years, that credit arising in the earliest | ||||||
16 | year will be applied
first against the tax liability for the | ||||||
17 | given year. If a tax liability for
the given year still | ||||||
18 | remains, the credit from the next earliest year will
then be | ||||||
19 | applied, and so on, until all credits have been used or no tax
| ||||||
20 | liability for the given year remains. Any remaining unused | ||||||
21 | credit or
credits then will be carried forward to the next | ||||||
22 | following year in which a
tax liability is incurred, except | ||||||
23 | that no credit can be carried forward to
a year which is more | ||||||
24 | than 5 years after the year in which the expense for
which the | ||||||
25 | credit is given was incurred. | ||||||
26 | No inference shall be drawn from this amendatory Act of the |
| |||||||
| |||||||
1 | 91st General
Assembly in construing this Section for taxable | ||||||
2 | years beginning before January
1, 1999. | ||||||
3 | (l) Environmental Remediation Tax Credit. | ||||||
4 | (i) For tax years ending after December 31, 1997 and on | ||||||
5 | or before
December 31, 2001, a taxpayer shall be allowed a | ||||||
6 | credit against the tax
imposed by subsections (a) and (b) | ||||||
7 | of this Section for certain amounts paid
for unreimbursed | ||||||
8 | eligible remediation costs, as specified in this | ||||||
9 | subsection.
For purposes of this Section, "unreimbursed | ||||||
10 | eligible remediation costs" means
costs approved by the | ||||||
11 | Illinois Environmental Protection Agency ("Agency") under
| ||||||
12 | Section 58.14 of the Environmental Protection Act that were | ||||||
13 | paid in performing
environmental remediation at a site for | ||||||
14 | which a No Further Remediation Letter
was issued by the | ||||||
15 | Agency and recorded under Section 58.10 of the | ||||||
16 | Environmental
Protection Act. The credit must be claimed | ||||||
17 | for the taxable year in which
Agency approval of the | ||||||
18 | eligible remediation costs is granted. The credit is
not | ||||||
19 | available to any taxpayer if the taxpayer or any related | ||||||
20 | party caused or
contributed to, in any material respect, a | ||||||
21 | release of regulated substances on,
in, or under the site | ||||||
22 | that was identified and addressed by the remedial
action | ||||||
23 | pursuant to the Site Remediation Program of the | ||||||
24 | Environmental Protection
Act. After the Pollution Control | ||||||
25 | Board rules are adopted pursuant to the
Illinois | ||||||
26 | Administrative Procedure Act for the administration and |
| |||||||
| |||||||
1 | enforcement of
Section 58.9 of the Environmental | ||||||
2 | Protection Act, determinations as to credit
availability | ||||||
3 | for purposes of this Section shall be made consistent with | ||||||
4 | those
rules. For purposes of this Section, "taxpayer" | ||||||
5 | includes a person whose tax
attributes the taxpayer has | ||||||
6 | succeeded to under Section 381 of the Internal
Revenue Code | ||||||
7 | and "related party" includes the persons disallowed a | ||||||
8 | deduction
for losses by paragraphs (b), (c), and (f)(1) of | ||||||
9 | Section 267 of the Internal
Revenue Code by virtue of being | ||||||
10 | a related taxpayer, as well as any of its
partners. The | ||||||
11 | credit allowed against the tax imposed by subsections (a) | ||||||
12 | and
(b) shall be equal to 25% of the unreimbursed eligible | ||||||
13 | remediation costs in
excess of $100,000 per site, except | ||||||
14 | that the $100,000 threshold shall not apply
to any site | ||||||
15 | contained in an enterprise zone as determined by the | ||||||
16 | Department of
Commerce and Community Affairs (now | ||||||
17 | Department of Commerce and Economic Opportunity). The | ||||||
18 | total credit allowed shall not exceed
$40,000 per year with | ||||||
19 | a maximum total of $150,000 per site. For partners and
| ||||||
20 | shareholders of subchapter S corporations, there shall be | ||||||
21 | allowed a credit
under this subsection to be determined in | ||||||
22 | accordance with the determination of
income and | ||||||
23 | distributive share of income under Sections 702 and 704 and
| ||||||
24 | subchapter S of the Internal Revenue Code. | ||||||
25 | (ii) A credit allowed under this subsection that is | ||||||
26 | unused in the year
the credit is earned may be carried |
| |||||||
| |||||||
1 | forward to each of the 5 taxable years
following the year | ||||||
2 | for which the credit is first earned until it is used.
The | ||||||
3 | term "unused credit" does not include any amounts of | ||||||
4 | unreimbursed eligible
remediation costs in excess of the | ||||||
5 | maximum credit per site authorized under
paragraph (i). | ||||||
6 | This credit shall be applied first to the earliest year
for | ||||||
7 | which there is a liability. If there is a credit under this | ||||||
8 | subsection
from more than one tax year that is available to | ||||||
9 | offset a liability, the
earliest credit arising under this | ||||||
10 | subsection shall be applied first. A
credit allowed under | ||||||
11 | this subsection may be sold to a buyer as part of a sale
of | ||||||
12 | all or part of the remediation site for which the credit | ||||||
13 | was granted. The
purchaser of a remediation site and the | ||||||
14 | tax credit shall succeed to the unused
credit and remaining | ||||||
15 | carry-forward period of the seller. To perfect the
| ||||||
16 | transfer, the assignor shall record the transfer in the | ||||||
17 | chain of title for the
site and provide written notice to | ||||||
18 | the Director of the Illinois Department of
Revenue of the | ||||||
19 | assignor's intent to sell the remediation site and the | ||||||
20 | amount of
the tax credit to be transferred as a portion of | ||||||
21 | the sale. In no event may a
credit be transferred to any | ||||||
22 | taxpayer if the taxpayer or a related party would
not be | ||||||
23 | eligible under the provisions of subsection (i). | ||||||
24 | (iii) For purposes of this Section, the term "site" | ||||||
25 | shall have the same
meaning as under Section 58.2 of the | ||||||
26 | Environmental Protection Act. |
| |||||||
| |||||||
1 | (m) Education expense credit. Beginning with tax years | ||||||
2 | ending after
December 31, 1999, a taxpayer who
is the custodian | ||||||
3 | of one or more qualifying pupils shall be allowed a credit
| ||||||
4 | against the tax imposed by subsections (a) and (b) of this | ||||||
5 | Section for
qualified education expenses incurred on behalf of | ||||||
6 | the qualifying pupils.
The credit shall be equal to 25% of | ||||||
7 | qualified education expenses, but in no
event may the total | ||||||
8 | credit under this subsection claimed by a
family that is the
| ||||||
9 | custodian of qualifying pupils exceed $500. In no event shall a | ||||||
10 | credit under
this subsection reduce the taxpayer's liability | ||||||
11 | under this Act to less than
zero. This subsection is exempt | ||||||
12 | from the provisions of Section 250 of this
Act. | ||||||
13 | For purposes of this subsection: | ||||||
14 | "Qualifying pupils" means individuals who (i) are | ||||||
15 | residents of the State of
Illinois, (ii) are under the age of | ||||||
16 | 21 at the close of the school year for
which a credit is | ||||||
17 | sought, and (iii) during the school year for which a credit
is | ||||||
18 | sought were full-time pupils enrolled in a kindergarten through | ||||||
19 | twelfth
grade education program at any school, as defined in | ||||||
20 | this subsection. | ||||||
21 | "Qualified education expense" means the amount incurred
on | ||||||
22 | behalf of a qualifying pupil in excess of $250 for tuition, | ||||||
23 | book fees, and
lab fees at the school in which the pupil is | ||||||
24 | enrolled during the regular school
year. | ||||||
25 | "School" means any public or nonpublic elementary or | ||||||
26 | secondary school in
Illinois that is in compliance with Title |
| |||||||
| |||||||
1 | VI of the Civil Rights Act of 1964
and attendance at which | ||||||
2 | satisfies the requirements of Section 26-1 of the
School Code, | ||||||
3 | except that nothing shall be construed to require a child to
| ||||||
4 | attend any particular public or nonpublic school to qualify for | ||||||
5 | the credit
under this Section. | ||||||
6 | "Custodian" means, with respect to qualifying pupils, an | ||||||
7 | Illinois resident
who is a parent, the parents, a legal | ||||||
8 | guardian, or the legal guardians of the
qualifying pupils. | ||||||
9 | (n) River Edge Redevelopment Zone site remediation tax | ||||||
10 | credit.
| ||||||
11 | (i) For tax years ending on or after December 31, 2006, | ||||||
12 | a taxpayer shall be allowed a credit against the tax | ||||||
13 | imposed by subsections (a) and (b) of this Section for | ||||||
14 | certain amounts paid for unreimbursed eligible remediation | ||||||
15 | costs, as specified in this subsection. For purposes of | ||||||
16 | this Section, "unreimbursed eligible remediation costs" | ||||||
17 | means costs approved by the Illinois Environmental | ||||||
18 | Protection Agency ("Agency") under Section 58.14a of the | ||||||
19 | Environmental Protection Act that were paid in performing | ||||||
20 | environmental remediation at a site within a River Edge | ||||||
21 | Redevelopment Zone for which a No Further Remediation | ||||||
22 | Letter was issued by the Agency and recorded under Section | ||||||
23 | 58.10 of the Environmental Protection Act. The credit must | ||||||
24 | be claimed for the taxable year in which Agency approval of | ||||||
25 | the eligible remediation costs is granted. The credit is | ||||||
26 | not available to any taxpayer if the taxpayer or any |
| |||||||
| |||||||
1 | related party caused or contributed to, in any material | ||||||
2 | respect, a release of regulated substances on, in, or under | ||||||
3 | the site that was identified and addressed by the remedial | ||||||
4 | action pursuant to the Site Remediation Program of the | ||||||
5 | Environmental Protection Act. Determinations as to credit | ||||||
6 | availability for purposes of this Section shall be made | ||||||
7 | consistent with rules adopted by the Pollution Control | ||||||
8 | Board pursuant to the Illinois Administrative Procedure | ||||||
9 | Act for the administration and enforcement of Section 58.9 | ||||||
10 | of the Environmental Protection Act. For purposes of this | ||||||
11 | Section, "taxpayer" includes a person whose tax attributes | ||||||
12 | the taxpayer has succeeded to under Section 381 of the | ||||||
13 | Internal Revenue Code and "related party" includes the | ||||||
14 | persons disallowed a deduction for losses by paragraphs | ||||||
15 | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | ||||||
16 | Code by virtue of being a related taxpayer, as well as any | ||||||
17 | of its partners. The credit allowed against the tax imposed | ||||||
18 | by subsections (a) and (b) shall be equal to 25% of the | ||||||
19 | unreimbursed eligible remediation costs in excess of | ||||||
20 | $100,000 per site. | ||||||
21 | (ii) A credit allowed under this subsection that is | ||||||
22 | unused in the year the credit is earned may be carried | ||||||
23 | forward to each of the 5 taxable years following the year | ||||||
24 | for which the credit is first earned until it is used. This | ||||||
25 | credit shall be applied first to the earliest year for | ||||||
26 | which there is a liability. If there is a credit under this |
| |||||||
| |||||||
1 | subsection from more than one tax year that is available to | ||||||
2 | offset a liability, the earliest credit arising under this | ||||||
3 | subsection shall be applied first. A credit allowed under | ||||||
4 | this subsection may be sold to a buyer as part of a sale of | ||||||
5 | all or part of the remediation site for which the credit | ||||||
6 | was granted. The purchaser of a remediation site and the | ||||||
7 | tax credit shall succeed to the unused credit and remaining | ||||||
8 | carry-forward period of the seller. To perfect the | ||||||
9 | transfer, the assignor shall record the transfer in the | ||||||
10 | chain of title for the site and provide written notice to | ||||||
11 | the Director of the Illinois Department of Revenue of the | ||||||
12 | assignor's intent to sell the remediation site and the | ||||||
13 | amount of the tax credit to be transferred as a portion of | ||||||
14 | the sale. In no event may a credit be transferred to any | ||||||
15 | taxpayer if the taxpayer or a related party would not be | ||||||
16 | eligible under the provisions of subsection (i). | ||||||
17 | (iii) For purposes of this Section, the term "site" | ||||||
18 | shall have the same meaning as under Section 58.2 of the | ||||||
19 | Environmental Protection Act. | ||||||
20 | (iv) This subsection is exempt from the provisions of | ||||||
21 | Section 250.
| ||||||
22 | (Source: P.A. 95-454, eff. 8-27-07; 96-115, eff. 7-31-09; | ||||||
23 | 96-116, eff. 7-31-09; 96-937, eff. 6-23-10; 96-1000, eff. | ||||||
24 | 7-2-10; 96-1496, eff. 1-13-11.)
| ||||||
25 | (35 ILCS 5/207) (from Ch. 120, par. 2-207)
|
| |||||||
| |||||||
1 | Sec. 207. Net Losses.
| ||||||
2 | (a) If after applying all of the (i) modifications
provided | ||||||
3 | for in paragraph (2) of Section 203(b), paragraph (2) of | ||||||
4 | Section
203(c) and paragraph (2) of Section 203(d) and (ii) the | ||||||
5 | allocation and
apportionment provisions of Article 3 of this
| ||||||
6 | Act and subsection (c) of this Section, the taxpayer's net | ||||||
7 | income results in a loss;
| ||||||
8 | (1) for any taxable year ending prior to December 31, | ||||||
9 | 1999, such loss
shall be allowed
as a carryover or | ||||||
10 | carryback deduction in the manner allowed under Section
172 | ||||||
11 | of the Internal Revenue Code;
| ||||||
12 | (2) for any taxable year ending on or after December | ||||||
13 | 31, 1999 and prior
to December 31, 2003, such loss
shall be | ||||||
14 | allowed as a carryback to each of the 2 taxable years | ||||||
15 | preceding the
taxable year of such loss and shall be a net | ||||||
16 | operating loss carryover to each of the
20 taxable years | ||||||
17 | following the taxable year of such loss; and
| ||||||
18 | (3) for any taxable year ending on or after December | ||||||
19 | 31, 2003, such loss
shall be allowed as a net operating | ||||||
20 | loss carryover to each of the 12 taxable years
following | ||||||
21 | the taxable year of such loss, except as provided in | ||||||
22 | subsection (d).
| ||||||
23 | (a-5) Election to relinquish carryback and order of | ||||||
24 | application of
losses.
| ||||||
25 | (A) For losses incurred in tax years ending prior | ||||||
26 | to December 31,
2003, the taxpayer may elect to |
| |||||||
| |||||||
1 | relinquish the entire carryback period
with respect to | ||||||
2 | such loss. Such election shall be made in the form and | ||||||
3 | manner
prescribed by the Department and shall be made | ||||||
4 | by the due date (including
extensions of time) for | ||||||
5 | filing the taxpayer's return for the taxable year in
| ||||||
6 | which such loss is incurred, and such election, once | ||||||
7 | made, shall be
irrevocable.
| ||||||
8 | (B) The entire amount of such loss shall be carried | ||||||
9 | to the earliest
taxable year to which such loss may be | ||||||
10 | carried. The amount of such loss which
shall be carried | ||||||
11 | to each of the other taxable years shall be the excess, | ||||||
12 | if
any, of the amount of such loss over the sum of the | ||||||
13 | deductions for carryback or
carryover of such loss | ||||||
14 | allowable for each of the prior taxable years to which
| ||||||
15 | such loss may be carried.
| ||||||
16 | (b) Any loss determined under subsection (a) of this | ||||||
17 | Section must be carried
back or carried forward in the same | ||||||
18 | manner for purposes of subsections (a)
and (b) of Section 201 | ||||||
19 | of this Act as for purposes of subsections (c) and
(d) of | ||||||
20 | Section 201 of this Act.
| ||||||
21 | (c) Notwithstanding any other provision of this Act, for | ||||||
22 | each taxable year ending on or after December 31, 2008, for | ||||||
23 | purposes of computing the loss for the taxable year under | ||||||
24 | subsection (a) of this Section and the deduction taken into | ||||||
25 | account for the taxable year for a net operating loss carryover | ||||||
26 | under paragraphs (1), (2), and (3) of subsection (a) of this |
| |||||||
| |||||||
1 | Section, the loss and net operating loss carryover shall be | ||||||
2 | reduced in an amount equal to the reduction to the net | ||||||
3 | operating loss and net operating loss carryover to the taxable | ||||||
4 | year, respectively, required under Section 108(b)(2)(A) of the | ||||||
5 | Internal Revenue Code, multiplied by a fraction, the numerator | ||||||
6 | of which is the amount of discharge of indebtedness income that | ||||||
7 | is excluded from gross income for the taxable year (but only if | ||||||
8 | the taxable year ends on or after December 31, 2008) under | ||||||
9 | Section 108(a) of the Internal Revenue Code and that would have | ||||||
10 | been allocated and apportioned to this State under Article 3 of | ||||||
11 | this Act but for that exclusion, and the denominator of which | ||||||
12 | is the total amount of discharge of indebtedness income | ||||||
13 | excluded from gross income under Section 108(a) of the Internal | ||||||
14 | Revenue Code for the taxable year. The reduction required under | ||||||
15 | this subsection (c) shall be made after the determination of | ||||||
16 | Illinois net income for the taxable year in which the | ||||||
17 | indebtedness is discharged.
| ||||||
18 | (d) In the case of a corporation (other than a Subchapter S | ||||||
19 | corporation), no carryover deduction shall be allowed under | ||||||
20 | this Section for any taxable year ending after December 31, | ||||||
21 | 2010 and prior to December 31, 2014; provided that, for | ||||||
22 | purposes of determining the taxable years to which a net loss | ||||||
23 | may be carried under subsection (a) of this Section, no taxable | ||||||
24 | year for which a deduction is disallowed under this subsection | ||||||
25 | shall be counted. | ||||||
26 | (Source: P.A. 95-233, eff. 8-16-07; 96-1496, eff. 1-13-11.)
|
| |||||||
| |||||||
1 | (35 ILCS 5/804) (from Ch. 120, par. 8-804)
| ||||||
2 | Sec. 804. Failure to Pay Estimated Tax.
| ||||||
3 | (a) In general. In case of any underpayment of estimated | ||||||
4 | tax by a
taxpayer, except as provided in subsection (d) or (e), | ||||||
5 | the taxpayer shall
be liable to a penalty in an amount | ||||||
6 | determined at the rate prescribed by
Section 3-3 of the Uniform | ||||||
7 | Penalty and Interest Act upon the amount of the
underpayment | ||||||
8 | (determined under subsection (b)) for each required | ||||||
9 | installment.
| ||||||
10 | (b) Amount of underpayment. For purposes of subsection (a), | ||||||
11 | the
amount of the underpayment shall be the excess of:
| ||||||
12 | (1) the amount of the installment which would be | ||||||
13 | required to be paid
under subsection (c), over
| ||||||
14 | (2) the amount, if any, of the installment paid on or | ||||||
15 | before the
last date prescribed for payment.
| ||||||
16 | (c) Amount of Required Installments.
| ||||||
17 | (1) Amount.
| ||||||
18 | (A) In General. Except as provided in paragraph | ||||||
19 | (2), the amount of any
required installment shall be | ||||||
20 | 25% of the required annual payment.
| ||||||
21 | (B) Required Annual Payment. For purposes of | ||||||
22 | subparagraph (A),
the term "required annual payment" | ||||||
23 | means the lesser of
| ||||||
24 | (i) 90% of the tax shown on the return for the | ||||||
25 | taxable year, or
if no return is filed, 90% of the |
| |||||||
| |||||||
1 | tax for such year, or
| ||||||
2 | (ii) for installments due prior to February 1, | ||||||
3 | 2011, and after January 31, 2012, 100% of the tax | ||||||
4 | shown on the return of the taxpayer for the
| ||||||
5 | preceding taxable year if a return showing a | ||||||
6 | liability for tax was filed by
the taxpayer for the | ||||||
7 | preceding taxable year and such preceding year was | ||||||
8 | a
taxable year of 12 months; or
| ||||||
9 | (iii) for installments due after January 31, | ||||||
10 | 2011, and prior to February 1, 2012, 150% of the | ||||||
11 | tax shown on the return of the taxpayer for the | ||||||
12 | preceding taxable year if a return showing a | ||||||
13 | liability for tax was filed by the taxpayer for the | ||||||
14 | preceding taxable year and such preceding year was | ||||||
15 | a taxable year of 12 months.
| ||||||
16 | (2) Lower Required Installment where Annualized Income | ||||||
17 | Installment is Less
Than Amount Determined Under Paragraph | ||||||
18 | (1).
| ||||||
19 | (A) In General. In the case of any required | ||||||
20 | installment if a taxpayer
establishes that the | ||||||
21 | annualized income installment is less than the amount
| ||||||
22 | determined under paragraph (1),
| ||||||
23 | (i) the amount of such required installment | ||||||
24 | shall be the annualized
income installment, and
| ||||||
25 | (ii) any reduction in a required installment | ||||||
26 | resulting from the
application of this |
| ||||||||||||||||||||||||||
| ||||||||||||||||||||||||||
1 | subparagraph shall be recaptured by increasing the
| |||||||||||||||||||||||||
2 | amount of the next required installment determined | |||||||||||||||||||||||||
3 | under paragraph (1) by
the amount of such | |||||||||||||||||||||||||
4 | reduction, and by increasing subsequent required
| |||||||||||||||||||||||||
5 | installments to the extent that the reduction has | |||||||||||||||||||||||||
6 | not previously been
recaptured under this clause.
| |||||||||||||||||||||||||
7 | (B) Determination of Annualized Income | |||||||||||||||||||||||||
8 | Installment. In the case of
any required installment, | |||||||||||||||||||||||||
9 | the annualized income installment is the
excess, if | |||||||||||||||||||||||||
10 | any, of
| |||||||||||||||||||||||||
11 | (i) an amount equal to the applicable | |||||||||||||||||||||||||
12 | percentage of the tax for the
taxable year computed | |||||||||||||||||||||||||
13 | by placing on an annualized basis the net income | |||||||||||||||||||||||||
14 | for
months in the taxable year ending before the | |||||||||||||||||||||||||
15 | due date for the installment, over
| |||||||||||||||||||||||||
16 | (ii) the aggregate amount of any prior | |||||||||||||||||||||||||
17 | required installments for
the taxable year.
| |||||||||||||||||||||||||
18 | (C) Applicable Percentage.
| |||||||||||||||||||||||||
| ||||||||||||||||||||||||||
25 | (D) Annualized Net Income; Individuals. For | |||||||||||||||||||||||||
26 | individuals, net
income shall be placed on an |
| |||||||
| |||||||
1 | annualized basis by:
| ||||||
2 | (i) multiplying by 12, or in the case of a | ||||||
3 | taxable year of
less than 12 months, by the number | ||||||
4 | of months in the taxable year, the
net income | ||||||
5 | computed without regard to the standard exemption | ||||||
6 | for the months
in the taxable
year ending before | ||||||
7 | the month in which the installment is required to | ||||||
8 | be paid;
| ||||||
9 | (ii) dividing the resulting amount by the | ||||||
10 | number of months in the
taxable year ending before | ||||||
11 | the month in which such installment date falls; and
| ||||||
12 | (iii) deducting from such amount the standard | ||||||
13 | exemption allowable for
the taxable year, such | ||||||
14 | standard exemption being determined as of the last
| ||||||
15 | date prescribed for payment of the installment.
| ||||||
16 | (E) Annualized Net Income; Corporations. For | ||||||
17 | corporations,
net income shall be placed on an | ||||||
18 | annualized basis by multiplying
by 12 the taxable | ||||||
19 | income
| ||||||
20 | (i) for the first 3 months of the taxable year, | ||||||
21 | in the case of the
installment required to be paid | ||||||
22 | in the 4th month,
| ||||||
23 | (ii) for the first 3 months or for the first 5 | ||||||
24 | months of the taxable
year, in the case of the | ||||||
25 | installment required to be paid in the 6th month,
| ||||||
26 | (iii) for the first 6 months or for the first 8 |
| |||||||
| |||||||
1 | months of the taxable
year, in the case of the | ||||||
2 | installment required to be paid in the 9th month, | ||||||
3 | and
| ||||||
4 | (iv) for the first 9 months or for the first 11 | ||||||
5 | months of the taxable
year, in the case of the | ||||||
6 | installment required to be paid in the 12th month
| ||||||
7 | of the taxable year,
| ||||||
8 | then dividing the resulting amount by the number of | ||||||
9 | months in the taxable
year (3, 5, 6, 8, 9, or 11 as the | ||||||
10 | case may be).
| ||||||
11 | (d) Exceptions. Notwithstanding the provisions of the | ||||||
12 | preceding
subsections, the penalty imposed by subsection (a) | ||||||
13 | shall not
be imposed if the taxpayer was not required to file | ||||||
14 | an Illinois income
tax return for the preceding taxable year, | ||||||
15 | or, for individuals, if the
taxpayer had no tax liability for | ||||||
16 | the preceding taxable year and such year
was a taxable year of | ||||||
17 | 12 months.
The penalty imposed by subsection (a) shall
also not | ||||||
18 | be imposed on any underpayments of estimated tax due before the
| ||||||
19 | effective date of this amendatory Act of 1998 which | ||||||
20 | underpayments are solely
attributable to the change in | ||||||
21 | apportionment from subsection (a) to subsection
(h) of Section | ||||||
22 | 304. The provisions of this amendatory Act of 1998 apply to tax
| ||||||
23 | years ending on or after December 31, 1998.
| ||||||
24 | (e) The penalty imposed for underpayment of estimated tax | ||||||
25 | by subsection
(a) of this Section shall not be imposed to the | ||||||
26 | extent that the Director
or his or her designate determines, |
| |||||||
| |||||||
1 | pursuant to Section 3-8 of the Uniform Penalty
and Interest Act | ||||||
2 | that the penalty should not be imposed.
| ||||||
3 | (f) Definition of tax. For purposes of subsections (b) and | ||||||
4 | (c),
the term "tax" means the excess of the tax imposed under | ||||||
5 | Article 2 of
this Act, over the amounts credited against such | ||||||
6 | tax under Sections
601(b) (3) and (4).
| ||||||
7 | (g) Application of Section in case of tax withheld under | ||||||
8 | Article 7.
For purposes of applying this Section:
| ||||||
9 | (1) in the case of an individual, tax
withheld from | ||||||
10 | compensation for the taxable year shall be deemed a payment
| ||||||
11 | of estimated tax, and an equal part of such amount shall be | ||||||
12 | deemed paid
on each installment date for such taxable year, | ||||||
13 | unless the taxpayer
establishes the dates on which all | ||||||
14 | amounts were actually withheld, in
which case the amounts | ||||||
15 | so withheld shall be deemed payments of estimated
tax on | ||||||
16 | the dates on which such amounts were actually withheld;
| ||||||
17 | (2) amounts timely paid by a partnership, Subchapter S | ||||||
18 | corporation, or trust on behalf of a partner, shareholder, | ||||||
19 | or beneficiary pursuant to subsection (f) of Section 502 or | ||||||
20 | Section 709.5 and claimed as a payment of estimated tax | ||||||
21 | shall be deemed a payment of estimated tax made on the last | ||||||
22 | day of the taxable year of the partnership, Subchapter S | ||||||
23 | corporation, or trust for which the income from the | ||||||
24 | withholding is made was computed; and | ||||||
25 | (3) all other amounts pursuant to Article 7 shall be | ||||||
26 | deemed a payment of estimated tax on the date the payment |
| |||||||
| |||||||
1 | is made to the taxpayer of the amount from which the tax is | ||||||
2 | withheld.
| ||||||
3 | (g-5) Amounts withheld under the State Salary and Annuity | ||||||
4 | Withholding
Act. An individual who has amounts withheld under | ||||||
5 | paragraph (10) of Section 4
of the State Salary and Annuity | ||||||
6 | Withholding Act may elect to have those amounts
treated as | ||||||
7 | payments of estimated tax made on the dates on which those | ||||||
8 | amounts
are actually withheld.
| ||||||
9 | (i) Short taxable year. The application of this Section to
| ||||||
10 | taxable years of less than 12 months shall be in accordance | ||||||
11 | with
regulations prescribed by the Department.
| ||||||
12 | The changes in this Section made by Public Act 84-127 shall | ||||||
13 | apply to
taxable years ending on or after January 1, 1986.
| ||||||
14 | (Source: P.A. 95-233, eff. 8-16-07; 96-1496, eff. 1-13-11.)
| ||||||
15 | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | ||||||
16 | Sec. 901. Collection Authority. | ||||||
17 | (a) In general. | ||||||
18 | The Department shall collect the taxes imposed by this Act. | ||||||
19 | The Department
shall collect certified past due child support | ||||||
20 | amounts under Section 2505-650
of the Department of Revenue Law | ||||||
21 | (20 ILCS 2505/2505-650). Except as
provided in subsections (c) | ||||||
22 | and , (e) , (f), and (g) of this Section, money collected
| ||||||
23 | pursuant to subsections (a) and (b) of Section 201 of this Act | ||||||
24 | shall be
paid into the General Revenue Fund in the State | ||||||
25 | treasury; money
collected pursuant to subsections (c) and (d) |
| |||||||
| |||||||
1 | of Section 201 of this Act
shall be paid into the Personal | ||||||
2 | Property Tax Replacement Fund, a special
fund in the State | ||||||
3 | Treasury; and money collected under Section 2505-650 of the
| ||||||
4 | Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
| ||||||
5 | into the
Child Support Enforcement Trust Fund, a special fund | ||||||
6 | outside the State
Treasury, or
to the State
Disbursement Unit | ||||||
7 | established under Section 10-26 of the Illinois Public Aid
| ||||||
8 | Code, as directed by the Department of Healthcare and Family | ||||||
9 | Services. | ||||||
10 | (b) Local Government Distributive Fund. | ||||||
11 | Beginning August 1, 1969, and continuing through June 30, | ||||||
12 | 1994, the Treasurer
shall transfer each month from the General | ||||||
13 | Revenue Fund to a special fund in
the State treasury, to be | ||||||
14 | known as the "Local Government Distributive Fund", an
amount | ||||||
15 | equal to 1/12 of the net revenue realized from the tax imposed | ||||||
16 | by
subsections (a) and (b) of Section 201 of this Act during | ||||||
17 | the preceding month.
Beginning July 1, 1994, and continuing | ||||||
18 | through June 30, 1995, the Treasurer
shall transfer each month | ||||||
19 | from the General Revenue Fund to the Local Government
| ||||||
20 | Distributive Fund an amount equal to 1/11 of the net revenue | ||||||
21 | realized from the
tax imposed by subsections (a) and (b) of | ||||||
22 | Section 201 of this Act during the
preceding month. Beginning | ||||||
23 | July 1, 1995 and continuing through January 31, 2011 , the | ||||||
24 | Treasurer shall transfer each
month from the General Revenue | ||||||
25 | Fund to the Local Government Distributive Fund
an amount equal | ||||||
26 | to the net of (i) 1/10 of the net revenue realized from the
tax |
| |||||||
| |||||||
1 | imposed by
subsections (a) and (b) of Section 201 of the | ||||||
2 | Illinois Income Tax Act during
the preceding month
(ii) minus, | ||||||
3 | beginning July 1, 2003 and ending June 30, 2004, $6,666,666, | ||||||
4 | and
beginning July 1,
2004,
zero. Beginning February 1, 2011, | ||||||
5 | and continuing through January 31, 2015, the Treasurer shall | ||||||
6 | transfer each month from the General Revenue Fund to the Local | ||||||
7 | Government Distributive Fund an amount equal to the sum of (i) | ||||||
8 | 6% (10% of the ratio of the 3% individual income tax rate prior | ||||||
9 | to 2011 to the 5% individual income tax rate after 2010) of the | ||||||
10 | net revenue realized from the tax imposed by subsections (a) | ||||||
11 | and (b) of Section 201 of this Act upon individuals, trusts, | ||||||
12 | and estates during the preceding month and (ii) 6.86% (10% of | ||||||
13 | the ratio of the 4.8% corporate income tax rate prior to 2011 | ||||||
14 | to the 7% corporate income tax rate after 2010) of the net | ||||||
15 | revenue realized from the tax imposed by subsections (a) and | ||||||
16 | (b) of Section 201 of this Act upon corporations during the | ||||||
17 | preceding month. Beginning February 1, 2015 and continuing | ||||||
18 | through January 31, 2025, the Treasurer shall transfer each | ||||||
19 | month from the General Revenue Fund to the Local Government | ||||||
20 | Distributive Fund an amount equal to the sum of (i) 8% (10% of | ||||||
21 | the ratio of the 3% individual income tax rate prior to 2011 to | ||||||
22 | the 3.75% individual income tax rate after 2014) of the net | ||||||
23 | revenue realized from the tax imposed by subsections (a) and | ||||||
24 | (b) of Section 201 of this Act upon individuals, trusts, and | ||||||
25 | estates during the preceding month and (ii) 9.14% (10% of the | ||||||
26 | ratio of the 4.8% corporate income tax rate prior to 2011 to |
| |||||||
| |||||||
1 | the 5.25% corporate income tax rate after 2014) of the net | ||||||
2 | revenue realized from the tax imposed by subsections (a) and | ||||||
3 | (b) of Section 201 of this Act upon corporations during the | ||||||
4 | preceding month. Beginning February 1, 2025, the Treasurer | ||||||
5 | shall transfer each month from the General Revenue Fund to the | ||||||
6 | Local Government Distributive Fund an amount equal to the sum | ||||||
7 | of (i) 9.23% (10% of the ratio of the 3% individual income tax | ||||||
8 | rate prior to 2011 to the 3.25% individual income tax rate | ||||||
9 | after 2024) of the net revenue realized from the tax imposed by | ||||||
10 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
11 | individuals, trusts, and estates during the preceding month and | ||||||
12 | (ii) 10% of the net revenue realized from the tax imposed by | ||||||
13 | subsections (a) and (b) of Section 201 of this Act upon | ||||||
14 | corporations during the preceding month. Net revenue realized | ||||||
15 | for a month shall be defined as the
revenue from the tax | ||||||
16 | imposed by subsections (a) and (b) of Section 201 of this
Act | ||||||
17 | which is deposited in the General Revenue Fund, the Education | ||||||
18 | Assistance
Fund, and the Income Tax Surcharge Local Government | ||||||
19 | Distributive Fund , the Fund for the Advancement of Education, | ||||||
20 | and the Commitment to Human Services Fund during the
month | ||||||
21 | minus the amount paid out of the General Revenue Fund in State | ||||||
22 | warrants
during that same month as refunds to taxpayers for | ||||||
23 | overpayment of liability
under the tax imposed by subsections | ||||||
24 | (a) and (b) of Section 201 of this Act. | ||||||
25 | (c) Deposits Into Income Tax Refund Fund. | ||||||
26 | (1) Beginning on January 1, 1989 and thereafter, the |
| |||||||
| |||||||
1 | Department shall
deposit a percentage of the amounts | ||||||
2 | collected pursuant to subsections (a)
and (b)(1), (2), and | ||||||
3 | (3), of Section 201 of this Act into a fund in the State
| ||||||
4 | treasury known as the Income Tax Refund Fund. The | ||||||
5 | Department shall deposit 6%
of such amounts during the | ||||||
6 | period beginning January 1, 1989 and ending on June
30, | ||||||
7 | 1989. Beginning with State fiscal year 1990 and for each | ||||||
8 | fiscal year
thereafter, the percentage deposited into the | ||||||
9 | Income Tax Refund Fund during a
fiscal year shall be the | ||||||
10 | Annual Percentage. For fiscal years 1999 through
2001, the | ||||||
11 | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | ||||||
12 | Annual Percentage shall be 8%.
For fiscal year 2004, the | ||||||
13 | Annual Percentage shall be 11.7%. Upon the effective date | ||||||
14 | of this amendatory Act of the 93rd General Assembly, the | ||||||
15 | Annual Percentage shall be 10% for fiscal year 2005. For | ||||||
16 | fiscal year 2006, the Annual Percentage shall be 9.75%. For | ||||||
17 | fiscal
year 2007, the Annual Percentage shall be 9.75%. For | ||||||
18 | fiscal year 2008, the Annual Percentage shall be 7.75%. For | ||||||
19 | fiscal year 2009, the Annual Percentage shall be 9.75%. For | ||||||
20 | fiscal year 2010, the Annual Percentage shall be 9.75%. For | ||||||
21 | fiscal year 2011, the Annual Percentage shall be 8.75%. For | ||||||
22 | all other
fiscal years, the
Annual Percentage shall be | ||||||
23 | calculated as a fraction, the numerator of which
shall be | ||||||
24 | the amount of refunds approved for payment by the | ||||||
25 | Department during
the preceding fiscal year as a result of | ||||||
26 | overpayment of tax liability under
subsections (a) and |
| |||||||
| |||||||
1 | (b)(1), (2), and (3) of Section 201 of this Act plus the
| ||||||
2 | amount of such refunds remaining approved but unpaid at the | ||||||
3 | end of the
preceding fiscal year, minus the amounts | ||||||
4 | transferred into the Income Tax
Refund Fund from the | ||||||
5 | Tobacco Settlement Recovery Fund, and
the denominator of | ||||||
6 | which shall be the amounts which will be collected pursuant
| ||||||
7 | to subsections (a) and (b)(1), (2), and (3) of Section 201 | ||||||
8 | of this Act during
the preceding fiscal year; except that | ||||||
9 | in State fiscal year 2002, the Annual
Percentage shall in | ||||||
10 | no event exceed 7.6%. The Director of Revenue shall
certify | ||||||
11 | the Annual Percentage to the Comptroller on the last | ||||||
12 | business day of
the fiscal year immediately preceding the | ||||||
13 | fiscal year for which it is to be
effective. | ||||||
14 | (2) Beginning on January 1, 1989 and thereafter, the | ||||||
15 | Department shall
deposit a percentage of the amounts | ||||||
16 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
17 | (8), (c) and (d) of Section 201
of this Act into a fund in | ||||||
18 | the State treasury known as the Income Tax
Refund Fund. The | ||||||
19 | Department shall deposit 18% of such amounts during the
| ||||||
20 | period beginning January 1, 1989 and ending on June 30, | ||||||
21 | 1989. Beginning
with State fiscal year 1990 and for each | ||||||
22 | fiscal year thereafter, the
percentage deposited into the | ||||||
23 | Income Tax Refund Fund during a fiscal year
shall be the | ||||||
24 | Annual Percentage. For fiscal years 1999, 2000, and 2001, | ||||||
25 | the
Annual Percentage shall be 19%.
For fiscal year 2003, | ||||||
26 | the Annual Percentage shall be 27%. For fiscal year
2004, |
| |||||||
| |||||||
1 | the Annual Percentage shall be 32%.
Upon the effective date | ||||||
2 | of this amendatory Act of the 93rd General Assembly, the | ||||||
3 | Annual Percentage shall be 24% for fiscal year 2005.
For | ||||||
4 | fiscal year 2006, the Annual Percentage shall be 20%. For | ||||||
5 | fiscal
year 2007, the Annual Percentage shall be 17.5%. For | ||||||
6 | fiscal year 2008, the Annual Percentage shall be 15.5%. For | ||||||
7 | fiscal year 2009, the Annual Percentage shall be 17.5%. For | ||||||
8 | fiscal year 2010, the Annual Percentage shall be 17.5%. For | ||||||
9 | fiscal year 2011, the Annual Percentage shall be 17.5%. For | ||||||
10 | all other fiscal years, the Annual
Percentage shall be | ||||||
11 | calculated
as a fraction, the numerator of which shall be | ||||||
12 | the amount of refunds
approved for payment by the | ||||||
13 | Department during the preceding fiscal year as
a result of | ||||||
14 | overpayment of tax liability under subsections (a) and | ||||||
15 | (b)(6),
(7), and (8), (c) and (d) of Section 201 of this | ||||||
16 | Act plus the
amount of such refunds remaining approved but | ||||||
17 | unpaid at the end of the
preceding fiscal year, and the | ||||||
18 | denominator of
which shall be the amounts which will be | ||||||
19 | collected pursuant to subsections (a)
and (b)(6), (7), and | ||||||
20 | (8), (c) and (d) of Section 201 of this Act during the
| ||||||
21 | preceding fiscal year; except that in State fiscal year | ||||||
22 | 2002, the Annual
Percentage shall in no event exceed 23%. | ||||||
23 | The Director of Revenue shall
certify the Annual Percentage | ||||||
24 | to the Comptroller on the last business day of
the fiscal | ||||||
25 | year immediately preceding the fiscal year for which it is | ||||||
26 | to be
effective. |
| |||||||
| |||||||
1 | (3) The Comptroller shall order transferred and the | ||||||
2 | Treasurer shall
transfer from the Tobacco Settlement | ||||||
3 | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | ||||||
4 | in January, 2001, (ii) $35,000,000 in January, 2002, and
| ||||||
5 | (iii) $35,000,000 in January, 2003. | ||||||
6 | (d) Expenditures from Income Tax Refund Fund. | ||||||
7 | (1) Beginning January 1, 1989, money in the Income Tax | ||||||
8 | Refund Fund
shall be expended exclusively for the purpose | ||||||
9 | of paying refunds resulting
from overpayment of tax | ||||||
10 | liability under Section 201 of this Act, for paying
rebates | ||||||
11 | under Section 208.1 in the event that the amounts in the | ||||||
12 | Homeowners'
Tax Relief Fund are insufficient for that | ||||||
13 | purpose,
and for
making transfers pursuant to this | ||||||
14 | subsection (d). | ||||||
15 | (2) The Director shall order payment of refunds | ||||||
16 | resulting from
overpayment of tax liability under Section | ||||||
17 | 201 of this Act from the
Income Tax Refund Fund only to the | ||||||
18 | extent that amounts collected pursuant
to Section 201 of | ||||||
19 | this Act and transfers pursuant to this subsection (d)
and | ||||||
20 | item (3) of subsection (c) have been deposited and retained | ||||||
21 | in the
Fund. | ||||||
22 | (3) As soon as possible after the end of each fiscal | ||||||
23 | year, the Director
shall
order transferred and the State | ||||||
24 | Treasurer and State Comptroller shall
transfer from the | ||||||
25 | Income Tax Refund Fund to the Personal Property Tax
| ||||||
26 | Replacement Fund an amount, certified by the Director to |
| |||||||
| |||||||
1 | the Comptroller,
equal to the excess of the amount | ||||||
2 | collected pursuant to subsections (c) and
(d) of Section | ||||||
3 | 201 of this Act deposited into the Income Tax Refund Fund
| ||||||
4 | during the fiscal year over the amount of refunds resulting | ||||||
5 | from
overpayment of tax liability under subsections (c) and | ||||||
6 | (d) of Section 201
of this Act paid from the Income Tax | ||||||
7 | Refund Fund during the fiscal year. | ||||||
8 | (4) As soon as possible after the end of each fiscal | ||||||
9 | year, the Director shall
order transferred and the State | ||||||
10 | Treasurer and State Comptroller shall
transfer from the | ||||||
11 | Personal Property Tax Replacement Fund to the Income Tax
| ||||||
12 | Refund Fund an amount, certified by the Director to the | ||||||
13 | Comptroller, equal
to the excess of the amount of refunds | ||||||
14 | resulting from overpayment of tax
liability under | ||||||
15 | subsections (c) and (d) of Section 201 of this Act paid
| ||||||
16 | from the Income Tax Refund Fund during the fiscal year over | ||||||
17 | the amount
collected pursuant to subsections (c) and (d) of | ||||||
18 | Section 201 of this Act
deposited into the Income Tax | ||||||
19 | Refund Fund during the fiscal year. | ||||||
20 | (4.5) As soon as possible after the end of fiscal year | ||||||
21 | 1999 and of each
fiscal year
thereafter, the Director shall | ||||||
22 | order transferred and the State Treasurer and
State | ||||||
23 | Comptroller shall transfer from the Income Tax Refund Fund | ||||||
24 | to the General
Revenue Fund any surplus remaining in the | ||||||
25 | Income Tax Refund Fund as of the end
of such fiscal year; | ||||||
26 | excluding for fiscal years 2000, 2001, and 2002
amounts |
| |||||||
| |||||||
1 | attributable to transfers under item (3) of subsection (c) | ||||||
2 | less refunds
resulting from the earned income tax credit. | ||||||
3 | (5) This Act shall constitute an irrevocable and | ||||||
4 | continuing
appropriation from the Income Tax Refund Fund | ||||||
5 | for the purpose of paying
refunds upon the order of the | ||||||
6 | Director in accordance with the provisions of
this Section. | ||||||
7 | (e) Deposits into the Education Assistance Fund and the | ||||||
8 | Income Tax
Surcharge Local Government Distributive Fund. | ||||||
9 | On July 1, 1991, and thereafter, of the amounts collected | ||||||
10 | pursuant to
subsections (a) and (b) of Section 201 of this Act, | ||||||
11 | minus deposits into the
Income Tax Refund Fund, the Department | ||||||
12 | shall deposit 7.3% into the
Education Assistance Fund in the | ||||||
13 | State Treasury. Beginning July 1, 1991,
and continuing through | ||||||
14 | January 31, 1993, of the amounts collected pursuant to
| ||||||
15 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
16 | Tax Act, minus
deposits into the Income Tax Refund Fund, the | ||||||
17 | Department shall deposit 3.0%
into the Income Tax Surcharge | ||||||
18 | Local Government Distributive Fund in the State
Treasury. | ||||||
19 | Beginning February 1, 1993 and continuing through June 30, | ||||||
20 | 1993, of
the amounts collected pursuant to subsections (a) and | ||||||
21 | (b) of Section 201 of the
Illinois Income Tax Act, minus | ||||||
22 | deposits into the Income Tax Refund Fund, the
Department shall | ||||||
23 | deposit 4.4% into the Income Tax Surcharge Local Government
| ||||||
24 | Distributive Fund in the State Treasury. Beginning July 1, | ||||||
25 | 1993, and
continuing through June 30, 1994, of the amounts | ||||||
26 | collected under subsections
(a) and (b) of Section 201 of this |
| |||||||
| |||||||
1 | Act, minus deposits into the Income Tax
Refund Fund, the | ||||||
2 | Department shall deposit 1.475% into the Income Tax Surcharge
| ||||||
3 | Local Government Distributive Fund in the State Treasury. | ||||||
4 | (f) (Blank). Deposits into the Fund for the Advancement of | ||||||
5 | Education. Beginning February 1, 2015, the Department shall | ||||||
6 | deposit the following portions of the revenue realized from the | ||||||
7 | tax imposed upon individuals, trusts, and estates by | ||||||
8 | subsections (a) and (b) of Section 201 of this Act during the | ||||||
9 | preceding month, minus deposits into the Income Tax Refund | ||||||
10 | Fund, into the Fund for the Advancement of Education: | ||||||
11 | (1) beginning February 1, 2015, and prior to February | ||||||
12 | 1, 2025, 1/30; and | ||||||
13 | (2) beginning February 1, 2025, 1/26. | ||||||
14 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
15 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
16 | the Department shall not make the deposits required by this | ||||||
17 | subsection (f) on or after the effective date of the reduction. | ||||||
18 | (g) (Blank). Deposits into the Commitment to Human Services | ||||||
19 | Fund. Beginning February 1, 2015, the Department shall deposit | ||||||
20 | the following portions of the revenue realized from the tax | ||||||
21 | imposed upon individuals, trusts, and estates by subsections | ||||||
22 | (a) and (b) of Section 201 of this Act during the preceding | ||||||
23 | month, minus deposits into the Income Tax Refund Fund, into the | ||||||
24 | Commitment to Human Services Fund: | ||||||
25 | (1) beginning February 1, 2015, and prior to February | ||||||
26 | 1, 2025, 1/30; and |
| |||||||
| |||||||
1 | (2) beginning February 1, 2025, 1/26. | ||||||
2 | If the rate of tax imposed by subsection (a) and (b) of | ||||||
3 | Section 201 is reduced pursuant to Section 201.5 of this Act, | ||||||
4 | the Department shall not make the deposits required by this | ||||||
5 | subsection (g) on or after the effective date of the reduction. | ||||||
6 | (Source: P.A. 95-707, eff. 1-11-08; 95-744, eff. 7-18-08; | ||||||
7 | 96-45, eff. 7-15-09; 96-328, eff. 8-11-09; 96-959, eff. 7-1-10; | ||||||
8 | 96-1496, eff. 1-13-11.) | ||||||
9 | Section 15. The Illinois Estate and Generation-Skipping | ||||||
10 | Transfer Tax Act is amended by changing Section 2 as follows:
| ||||||
11 | (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
| ||||||
12 | Sec. 2. Definitions.
| ||||||
13 | "Federal estate tax" means the tax due to the United States | ||||||
14 | with respect
to a taxable transfer under Chapter 11 of the | ||||||
15 | Internal Revenue Code.
| ||||||
16 | "Federal generation-skipping transfer tax" means the tax | ||||||
17 | due to the
United States with respect to a taxable transfer | ||||||
18 | under Chapter 13 of the
Internal Revenue Code.
| ||||||
19 | "Federal return" means the federal estate tax return with | ||||||
20 | respect to the
federal estate tax and means the federal | ||||||
21 | generation-skipping transfer tax
return
with respect to the | ||||||
22 | federal generation-skipping transfer tax.
| ||||||
23 | "Federal transfer tax" means the federal estate tax or the | ||||||
24 | federal
generation-skipping transfer tax.
|
| |||||||
| |||||||
1 | "Illinois estate tax" means the tax due to this State with | ||||||
2 | respect to a
taxable transfer.
| ||||||
3 | "Illinois generation-skipping transfer tax" means the tax | ||||||
4 | due to this State
with respect to a taxable transfer that gives | ||||||
5 | rise to a federal
generation-skipping transfer tax.
| ||||||
6 | "Illinois transfer tax" means the Illinois estate tax or | ||||||
7 | the Illinois
generation-skipping transfer tax.
| ||||||
8 | "Internal Revenue Code" means, unless otherwise provided, | ||||||
9 | the Internal
Revenue Code of 1986, as
amended from time to | ||||||
10 | time.
| ||||||
11 | "Non-resident trust" means a trust that is not a resident | ||||||
12 | of this State
for purposes of the Illinois Income Tax Act, as | ||||||
13 | amended from time to time.
| ||||||
14 | "Person" means and includes any individual, trust, estate, | ||||||
15 | partnership,
association, company or corporation.
| ||||||
16 | "Qualified heir" means a qualified heir as defined in | ||||||
17 | Section 2032A(e)(1)
of the Internal Revenue Code.
| ||||||
18 | "Resident trust" means a trust that is a resident of this | ||||||
19 | State for
purposes of the Illinois Income Tax Act, as amended | ||||||
20 | from time to time.
| ||||||
21 | "State" means any state, territory or possession of the | ||||||
22 | United States and
the District of Columbia.
| ||||||
23 | "State tax credit" means:
| ||||||
24 | (a) For persons dying on or after January 1, 2003 and
| ||||||
25 | through December 31, 2005, an amount
equal
to the full credit | ||||||
26 | calculable under Section 2011 or Section 2604 of the
Internal |
| |||||||
| |||||||
1 | Revenue
Code as the credit would have been computed and allowed | ||||||
2 | under the Internal
Revenue
Code as in effect on December 31, | ||||||
3 | 2001, without the reduction in the State
Death Tax
Credit as | ||||||
4 | provided in Section 2011(b)(2) or the termination of the State | ||||||
5 | Death
Tax Credit
as provided in Section 2011(f) as enacted by | ||||||
6 | the Economic Growth and Tax Relief
Reconciliation Act of 2001, | ||||||
7 | but recognizing the increased applicable exclusion
amount
| ||||||
8 | through December 31, 2005.
| ||||||
9 | (b) For persons dying after December 31, 2005 and on or | ||||||
10 | before December 31,
2009, and for persons dying after December | ||||||
11 | 31, 2010, an amount equal to the full
credit
calculable under | ||||||
12 | Section 2011 or 2604 of the Internal Revenue Code as the
credit | ||||||
13 | would
have been computed and allowed under the Internal Revenue | ||||||
14 | Code as in effect on
December 31, 2001, without the reduction | ||||||
15 | in the State Death Tax Credit as
provided in
Section 2011(b)(2) | ||||||
16 | or the termination of the State Death Tax Credit as provided
in
| ||||||
17 | Section 2011(f) as enacted by the Economic Growth and Tax | ||||||
18 | Relief Reconciliation
Act of
2001, but recognizing the | ||||||
19 | exclusion amount of only $2,000,000, and with reduction to the | ||||||
20 | adjusted taxable estate for any qualified terminable interest | ||||||
21 | property election as defined in subsection (b-1) of this | ||||||
22 | Section.
| ||||||
23 | (b-1) The person required to file the Illinois return may | ||||||
24 | elect on a timely filed Illinois return a marital deduction for | ||||||
25 | qualified terminable interest property under Section | ||||||
26 | 2056(b)(7) of the Internal Revenue Code for purposes of the |
| |||||||
| |||||||
1 | Illinois estate tax that is separate and independent of any | ||||||
2 | qualified terminable interest property election for federal | ||||||
3 | estate tax purposes. For purposes of the Illinois estate tax, | ||||||
4 | the inclusion of property in the gross estate of a surviving | ||||||
5 | spouse is the same as under Section 2044 of the Internal | ||||||
6 | Revenue Code. | ||||||
7 | In the case of any trust for which a State or federal | ||||||
8 | qualified terminable interest property election is made, the | ||||||
9 | trustee may not retain non-income producing assets for more | ||||||
10 | than a reasonable amount of time without the consent of the | ||||||
11 | surviving spouse.
| ||||||
12 | (c) For persons dying after December 31, 2009, the credit | ||||||
13 | for state tax allowable under Section 2011 or Section 2604 of | ||||||
14 | the Internal Revenue Code. | ||||||
15 | "Taxable transfer" means an event that gives rise to a | ||||||
16 | state tax credit,
including any credit as a result of the | ||||||
17 | imposition of an
additional tax under Section 2032A(c) of the | ||||||
18 | Internal Revenue Code.
| ||||||
19 | "Transferee" means a transferee within the meaning of | ||||||
20 | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | ||||||
21 | Code.
| ||||||
22 | "Transferred property" means:
| ||||||
23 | (1) With respect to a taxable transfer occurring at the | ||||||
24 | death of an
individual, the
deceased individual's gross | ||||||
25 | estate as defined in Section 2031 of the
Internal Revenue | ||||||
26 | Code.
|
| |||||||
| |||||||
1 | (2) With respect to a taxable transfer occurring as a | ||||||
2 | result of a
taxable termination as defined in Section | ||||||
3 | 2612(a) of the Internal Revenue Code,
the taxable amount | ||||||
4 | determined under Section 2622(a) of the Internal Revenue
| ||||||
5 | Code.
| ||||||
6 | (3) With respect to a taxable transfer occurring as a | ||||||
7 | result of a
taxable distribution as defined in Section | ||||||
8 | 2612(b) of the Internal Revenue Code,
the taxable amount | ||||||
9 | determined under Section 2621(a) of the Internal Revenue
| ||||||
10 | Code.
| ||||||
11 | (4) With respect to an event which causes the | ||||||
12 | imposition of an
additional estate tax under Section | ||||||
13 | 2032A(c) of the Internal Revenue Code,
the
qualified real | ||||||
14 | property that was disposed of or which ceased to be used | ||||||
15 | for
the qualified use, within the meaning of Section | ||||||
16 | 2032A(c)(1) of the Internal
Revenue Code.
| ||||||
17 | "Trust" includes a trust as defined in Section 2652(b)(1) | ||||||
18 | of the Internal
Revenue Code.
| ||||||
19 | (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11.)
| ||||||
20 | (30 ILCS 5/3-20 rep.) | ||||||
21 | Section 20. The Illinois State Auditing Act is amended by | ||||||
22 | repealing Section 3-20. | ||||||
23 | (30 ILCS 105/5.787 rep.) | ||||||
24 | (30 ILCS 105/6z-85 rep.) |
| |||||||
| |||||||
1 | (30 ILCS 105/6z-86 rep.) | ||||||
2 | (30 ILCS 105/25.2 rep.) | ||||||
3 | Section 25. The State Finance Act is amended by repealing | ||||||
4 | Sections 5.787, 6z-85, 6z-86, and 25.2.
| ||||||
5 | (35 ILCS 5/202.5 rep.) | ||||||
6 | Section 30. The Illinois Income Tax Act is amended by | ||||||
7 | repealing Section 202.5. | ||||||
8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.
|