98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0091

 

Introduced 1/9/2013, by Rep. David McSweeney

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/201  from Ch. 120, par. 2-201
35 ILCS 5/201.5
35 ILCS 5/207  from Ch. 120, par. 2-207
35 ILCS 5/901  from Ch. 120, par. 9-901
30 ILCS 105/5.786 rep.
30 ILCS 105/5.787 rep.
30 ILCS 105/6z-85 rep.
30 ILCS 105/6z-86 rep.

    Amends the Illinois Income Tax Act. Reduces the rate of tax to 3% for individuals, trusts, and estates and 4.8% for corporations. Makes corresponding changes concerning the distribution of tax proceeds. Removes a limitation providing that no net loss carryover deduction may exceed $100,000 for any taxable year ending on or after December 31, 2012 and prior to December 31, 2014. Provides that, if the State exceeds certain specified spending limitations, the Auditor General shall post a copy of the supplemental spending report on his or her website. Effective immediately.


LRB098 04258 HLH 34285 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0091LRB098 04258 HLH 34285 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Sections 201, 201.5, 207, and 901 as follows:
 
6    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
7    Sec. 201. Tax Imposed.
8    (a) In general. A tax measured by net income is hereby
9imposed on every individual, corporation, trust and estate for
10each taxable year ending after July 31, 1969 on the privilege
11of earning or receiving income in or as a resident of this
12State. Such tax shall be in addition to all other occupation or
13privilege taxes imposed by this State or by any municipal
14corporation or political subdivision thereof.
15    (b) Rates. The tax imposed by subsection (a) of this
16Section shall be determined as follows, except as adjusted by
17subsection (d-1):
18        (1) In the case of an individual, trust or estate, for
19    taxable years ending prior to July 1, 1989, an amount equal
20    to 2 1/2% of the taxpayer's net income for the taxable
21    year.
22        (2) In the case of an individual, trust or estate, for
23    taxable years beginning prior to July 1, 1989 and ending

 

 

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1    after June 30, 1989, an amount equal to the sum of (i) 2
2    1/2% of the taxpayer's net income for the period prior to
3    July 1, 1989, as calculated under Section 202.3, and (ii)
4    3% of the taxpayer's net income for the period after June
5    30, 1989, as calculated under Section 202.3.
6        (3) In the case of an individual, trust or estate, for
7    taxable years beginning after June 30, 1989, and ending
8    prior to January 1, 2011, an amount equal to 3% of the
9    taxpayer's net income for the taxable year.
10        (4) In the case of an individual, trust, or estate, for
11    taxable years beginning prior to January 1, 2011, and
12    ending after December 31, 2010, an amount equal to the sum
13    of (i) 3% of the taxpayer's net income for the period prior
14    to January 1, 2011, as calculated under Section 202.5, and
15    (ii) 5% of the taxpayer's net income for the period after
16    December 31, 2010, as calculated under Section 202.5.
17        (5) In the case of an individual, trust, or estate, for
18    taxable years beginning on or after January 1, 2011, and
19    ending prior to January 1, 2013, January 1, 2015, an amount
20    equal to 5% of the taxpayer's net income for the taxable
21    year.
22        (5.1) In the case of an individual, trust, or estate,
23    for taxable years beginning prior to January 1, 2013,
24    January 1, 2015, and ending after December 31, 2012,
25    December 31, 2014, an amount equal to the sum of (i) 5% of
26    the taxpayer's net income for the period prior to January

 

 

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1    1, 2013, January 1, 2015, as calculated under Section
2    202.5, and (ii) 3% 3.75% of the taxpayer's net income for
3    the period after December 31, 2012, December 31, 2014, as
4    calculated under Section 202.5.
5        (5.2) In the case of an individual, trust, or estate,
6    for taxable years beginning on or after January 1, 2013,
7    January 1, 2015, and ending prior to January 1, 2025, an
8    amount equal to 3% 3.75% of the taxpayer's net income for
9    the taxable year.
10        (5.3) (Blank). In the case of an individual, trust, or
11    estate, for taxable years beginning prior to January 1,
12    2025, and ending after December 31, 2024, an amount equal
13    to the sum of (i) 3.75% of the taxpayer's net income for
14    the period prior to January 1, 2025, as calculated under
15    Section 202.5, and (ii) 3.25% of the taxpayer's net income
16    for the period after December 31, 2024, as calculated under
17    Section 202.5.
18        (5.4) (Blank). In the case of an individual, trust, or
19    estate, for taxable years beginning on or after January 1,
20    2025, an amount equal to 3.25% of the taxpayer's net income
21    for the taxable year.
22        (6) In the case of a corporation, for taxable years
23    ending prior to July 1, 1989, an amount equal to 4% of the
24    taxpayer's net income for the taxable year.
25        (7) In the case of a corporation, for taxable years
26    beginning prior to July 1, 1989 and ending after June 30,

 

 

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1    1989, an amount equal to the sum of (i) 4% of the
2    taxpayer's net income for the period prior to July 1, 1989,
3    as calculated under Section 202.3, and (ii) 4.8% of the
4    taxpayer's net income for the period after June 30, 1989,
5    as calculated under Section 202.3.
6        (8) In the case of a corporation, for taxable years
7    beginning after June 30, 1989, and ending prior to January
8    1, 2011, an amount equal to 4.8% of the taxpayer's net
9    income for the taxable year.
10        (9) In the case of a corporation, for taxable years
11    beginning prior to January 1, 2011, and ending after
12    December 31, 2010, an amount equal to the sum of (i) 4.8%
13    of the taxpayer's net income for the period prior to
14    January 1, 2011, as calculated under Section 202.5, and
15    (ii) 7% of the taxpayer's net income for the period after
16    December 31, 2010, as calculated under Section 202.5.
17        (10) In the case of a corporation, for taxable years
18    beginning on or after January 1, 2011, and ending prior to
19    January 1, 2013, January 1, 2015, an amount equal to 7% of
20    the taxpayer's net income for the taxable year.
21        (11) In the case of a corporation, for taxable years
22    beginning prior to January 1, 2013, January 1, 2015, and
23    ending after December 31, 2012, December 31, 2014, an
24    amount equal to the sum of (i) 7% of the taxpayer's net
25    income for the period prior to January 1, 2013, January 1,
26    2015, as calculated under Section 202.5, and (ii) 4.8%

 

 

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1    5.25% of the taxpayer's net income for the period after
2    December 31, 2012, December 31, 2014, as calculated under
3    Section 202.5.
4        (12) In the case of a corporation, for taxable years
5    beginning on or after January 1, 2013, January 1, 2015, and
6    ending prior to January 1, 2025, an amount equal to 4.8%
7    5.25% of the taxpayer's net income for the taxable year.
8        (13) (Blank). In the case of a corporation, for taxable
9    years beginning prior to January 1, 2025, and ending after
10    December 31, 2024, an amount equal to the sum of (i) 5.25%
11    of the taxpayer's net income for the period prior to
12    January 1, 2025, as calculated under Section 202.5, and
13    (ii) 4.8% of the taxpayer's net income for the period after
14    December 31, 2024, as calculated under Section 202.5.
15        (14) (Blank). In the case of a corporation, for taxable
16    years beginning on or after January 1, 2025, an amount
17    equal to 4.8% of the taxpayer's net income for the taxable
18    year.
19    The rates under this subsection (b) are subject to the
20provisions of Section 201.5.
21    (c) Personal Property Tax Replacement Income Tax.
22Beginning on July 1, 1979 and thereafter, in addition to such
23income tax, there is also hereby imposed the Personal Property
24Tax Replacement Income Tax measured by net income on every
25corporation (including Subchapter S corporations), partnership
26and trust, for each taxable year ending after June 30, 1979.

 

 

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1Such taxes are imposed on the privilege of earning or receiving
2income in or as a resident of this State. The Personal Property
3Tax Replacement Income Tax shall be in addition to the income
4tax imposed by subsections (a) and (b) of this Section and in
5addition to all other occupation or privilege taxes imposed by
6this State or by any municipal corporation or political
7subdivision thereof.
8    (d) Additional Personal Property Tax Replacement Income
9Tax Rates. The personal property tax replacement income tax
10imposed by this subsection and subsection (c) of this Section
11in the case of a corporation, other than a Subchapter S
12corporation and except as adjusted by subsection (d-1), shall
13be an additional amount equal to 2.85% of such taxpayer's net
14income for the taxable year, except that beginning on January
151, 1981, and thereafter, the rate of 2.85% specified in this
16subsection shall be reduced to 2.5%, and in the case of a
17partnership, trust or a Subchapter S corporation shall be an
18additional amount equal to 1.5% of such taxpayer's net income
19for the taxable year.
20    (d-1) Rate reduction for certain foreign insurers. In the
21case of a foreign insurer, as defined by Section 35A-5 of the
22Illinois Insurance Code, whose state or country of domicile
23imposes on insurers domiciled in Illinois a retaliatory tax
24(excluding any insurer whose premiums from reinsurance assumed
25are 50% or more of its total insurance premiums as determined
26under paragraph (2) of subsection (b) of Section 304, except

 

 

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1that for purposes of this determination premiums from
2reinsurance do not include premiums from inter-affiliate
3reinsurance arrangements), beginning with taxable years ending
4on or after December 31, 1999, the sum of the rates of tax
5imposed by subsections (b) and (d) shall be reduced (but not
6increased) to the rate at which the total amount of tax imposed
7under this Act, net of all credits allowed under this Act,
8shall equal (i) the total amount of tax that would be imposed
9on the foreign insurer's net income allocable to Illinois for
10the taxable year by such foreign insurer's state or country of
11domicile if that net income were subject to all income taxes
12and taxes measured by net income imposed by such foreign
13insurer's state or country of domicile, net of all credits
14allowed or (ii) a rate of zero if no such tax is imposed on such
15income by the foreign insurer's state of domicile. For the
16purposes of this subsection (d-1), an inter-affiliate includes
17a mutual insurer under common management.
18        (1) For the purposes of subsection (d-1), in no event
19    shall the sum of the rates of tax imposed by subsections
20    (b) and (d) be reduced below the rate at which the sum of:
21            (A) the total amount of tax imposed on such foreign
22        insurer under this Act for a taxable year, net of all
23        credits allowed under this Act, plus
24            (B) the privilege tax imposed by Section 409 of the
25        Illinois Insurance Code, the fire insurance company
26        tax imposed by Section 12 of the Fire Investigation

 

 

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1        Act, and the fire department taxes imposed under
2        Section 11-10-1 of the Illinois Municipal Code,
3    equals 1.25% for taxable years ending prior to December 31,
4    2003, or 1.75% for taxable years ending on or after
5    December 31, 2003, of the net taxable premiums written for
6    the taxable year, as described by subsection (1) of Section
7    409 of the Illinois Insurance Code. This paragraph will in
8    no event increase the rates imposed under subsections (b)
9    and (d).
10        (2) Any reduction in the rates of tax imposed by this
11    subsection shall be applied first against the rates imposed
12    by subsection (b) and only after the tax imposed by
13    subsection (a) net of all credits allowed under this
14    Section other than the credit allowed under subsection (i)
15    has been reduced to zero, against the rates imposed by
16    subsection (d).
17    This subsection (d-1) is exempt from the provisions of
18Section 250.
19    (e) Investment credit. A taxpayer shall be allowed a credit
20against the Personal Property Tax Replacement Income Tax for
21investment in qualified property.
22        (1) A taxpayer shall be allowed a credit equal to .5%
23    of the basis of qualified property placed in service during
24    the taxable year, provided such property is placed in
25    service on or after July 1, 1984. There shall be allowed an
26    additional credit equal to .5% of the basis of qualified

 

 

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1    property placed in service during the taxable year,
2    provided such property is placed in service on or after
3    July 1, 1986, and the taxpayer's base employment within
4    Illinois has increased by 1% or more over the preceding
5    year as determined by the taxpayer's employment records
6    filed with the Illinois Department of Employment Security.
7    Taxpayers who are new to Illinois shall be deemed to have
8    met the 1% growth in base employment for the first year in
9    which they file employment records with the Illinois
10    Department of Employment Security. The provisions added to
11    this Section by Public Act 85-1200 (and restored by Public
12    Act 87-895) shall be construed as declaratory of existing
13    law and not as a new enactment. If, in any year, the
14    increase in base employment within Illinois over the
15    preceding year is less than 1%, the additional credit shall
16    be limited to that percentage times a fraction, the
17    numerator of which is .5% and the denominator of which is
18    1%, but shall not exceed .5%. The investment credit shall
19    not be allowed to the extent that it would reduce a
20    taxpayer's liability in any tax year below zero, nor may
21    any credit for qualified property be allowed for any year
22    other than the year in which the property was placed in
23    service in Illinois. For tax years ending on or after
24    December 31, 1987, and on or before December 31, 1988, the
25    credit shall be allowed for the tax year in which the
26    property is placed in service, or, if the amount of the

 

 

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1    credit exceeds the tax liability for that year, whether it
2    exceeds the original liability or the liability as later
3    amended, such excess may be carried forward and applied to
4    the tax liability of the 5 taxable years following the
5    excess credit years if the taxpayer (i) makes investments
6    which cause the creation of a minimum of 2,000 full-time
7    equivalent jobs in Illinois, (ii) is located in an
8    enterprise zone established pursuant to the Illinois
9    Enterprise Zone Act and (iii) is certified by the
10    Department of Commerce and Community Affairs (now
11    Department of Commerce and Economic Opportunity) as
12    complying with the requirements specified in clause (i) and
13    (ii) by July 1, 1986. The Department of Commerce and
14    Community Affairs (now Department of Commerce and Economic
15    Opportunity) shall notify the Department of Revenue of all
16    such certifications immediately. For tax years ending
17    after December 31, 1988, the credit shall be allowed for
18    the tax year in which the property is placed in service,
19    or, if the amount of the credit exceeds the tax liability
20    for that year, whether it exceeds the original liability or
21    the liability as later amended, such excess may be carried
22    forward and applied to the tax liability of the 5 taxable
23    years following the excess credit years. The credit shall
24    be applied to the earliest year for which there is a
25    liability. If there is credit from more than one tax year
26    that is available to offset a liability, earlier credit

 

 

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1    shall be applied first.
2        (2) The term "qualified property" means property
3    which:
4            (A) is tangible, whether new or used, including
5        buildings and structural components of buildings and
6        signs that are real property, but not including land or
7        improvements to real property that are not a structural
8        component of a building such as landscaping, sewer
9        lines, local access roads, fencing, parking lots, and
10        other appurtenances;
11            (B) is depreciable pursuant to Section 167 of the
12        Internal Revenue Code, except that "3-year property"
13        as defined in Section 168(c)(2)(A) of that Code is not
14        eligible for the credit provided by this subsection
15        (e);
16            (C) is acquired by purchase as defined in Section
17        179(d) of the Internal Revenue Code;
18            (D) is used in Illinois by a taxpayer who is
19        primarily engaged in manufacturing, or in mining coal
20        or fluorite, or in retailing, or was placed in service
21        on or after July 1, 2006 in a River Edge Redevelopment
22        Zone established pursuant to the River Edge
23        Redevelopment Zone Act; and
24            (E) has not previously been used in Illinois in
25        such a manner and by such a person as would qualify for
26        the credit provided by this subsection (e) or

 

 

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1        subsection (f).
2        (3) For purposes of this subsection (e),
3    "manufacturing" means the material staging and production
4    of tangible personal property by procedures commonly
5    regarded as manufacturing, processing, fabrication, or
6    assembling which changes some existing material into new
7    shapes, new qualities, or new combinations. For purposes of
8    this subsection (e) the term "mining" shall have the same
9    meaning as the term "mining" in Section 613(c) of the
10    Internal Revenue Code. For purposes of this subsection (e),
11    the term "retailing" means the sale of tangible personal
12    property for use or consumption and not for resale, or
13    services rendered in conjunction with the sale of tangible
14    personal property for use or consumption and not for
15    resale. For purposes of this subsection (e), "tangible
16    personal property" has the same meaning as when that term
17    is used in the Retailers' Occupation Tax Act, and, for
18    taxable years ending after December 31, 2008, does not
19    include the generation, transmission, or distribution of
20    electricity.
21        (4) The basis of qualified property shall be the basis
22    used to compute the depreciation deduction for federal
23    income tax purposes.
24        (5) If the basis of the property for federal income tax
25    depreciation purposes is increased after it has been placed
26    in service in Illinois by the taxpayer, the amount of such

 

 

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1    increase shall be deemed property placed in service on the
2    date of such increase in basis.
3        (6) The term "placed in service" shall have the same
4    meaning as under Section 46 of the Internal Revenue Code.
5        (7) If during any taxable year, any property ceases to
6    be qualified property in the hands of the taxpayer within
7    48 months after being placed in service, or the situs of
8    any qualified property is moved outside Illinois within 48
9    months after being placed in service, the Personal Property
10    Tax Replacement Income Tax for such taxable year shall be
11    increased. Such increase shall be determined by (i)
12    recomputing the investment credit which would have been
13    allowed for the year in which credit for such property was
14    originally allowed by eliminating such property from such
15    computation and, (ii) subtracting such recomputed credit
16    from the amount of credit previously allowed. For the
17    purposes of this paragraph (7), a reduction of the basis of
18    qualified property resulting from a redetermination of the
19    purchase price shall be deemed a disposition of qualified
20    property to the extent of such reduction.
21        (8) Unless the investment credit is extended by law,
22    the basis of qualified property shall not include costs
23    incurred after December 31, 2018, except for costs incurred
24    pursuant to a binding contract entered into on or before
25    December 31, 2018.
26        (9) Each taxable year ending before December 31, 2000,

 

 

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1    a partnership may elect to pass through to its partners the
2    credits to which the partnership is entitled under this
3    subsection (e) for the taxable year. A partner may use the
4    credit allocated to him or her under this paragraph only
5    against the tax imposed in subsections (c) and (d) of this
6    Section. If the partnership makes that election, those
7    credits shall be allocated among the partners in the
8    partnership in accordance with the rules set forth in
9    Section 704(b) of the Internal Revenue Code, and the rules
10    promulgated under that Section, and the allocated amount of
11    the credits shall be allowed to the partners for that
12    taxable year. The partnership shall make this election on
13    its Personal Property Tax Replacement Income Tax return for
14    that taxable year. The election to pass through the credits
15    shall be irrevocable.
16        For taxable years ending on or after December 31, 2000,
17    a partner that qualifies its partnership for a subtraction
18    under subparagraph (I) of paragraph (2) of subsection (d)
19    of Section 203 or a shareholder that qualifies a Subchapter
20    S corporation for a subtraction under subparagraph (S) of
21    paragraph (2) of subsection (b) of Section 203 shall be
22    allowed a credit under this subsection (e) equal to its
23    share of the credit earned under this subsection (e) during
24    the taxable year by the partnership or Subchapter S
25    corporation, determined in accordance with the
26    determination of income and distributive share of income

 

 

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1    under Sections 702 and 704 and Subchapter S of the Internal
2    Revenue Code. This paragraph is exempt from the provisions
3    of Section 250.
4    (f) Investment credit; Enterprise Zone; River Edge
5Redevelopment Zone.
6        (1) A taxpayer shall be allowed a credit against the
7    tax imposed by subsections (a) and (b) of this Section for
8    investment in qualified property which is placed in service
9    in an Enterprise Zone created pursuant to the Illinois
10    Enterprise Zone Act or, for property placed in service on
11    or after July 1, 2006, a River Edge Redevelopment Zone
12    established pursuant to the River Edge Redevelopment Zone
13    Act. For partners, shareholders of Subchapter S
14    corporations, and owners of limited liability companies,
15    if the liability company is treated as a partnership for
16    purposes of federal and State income taxation, there shall
17    be allowed a credit under this subsection (f) to be
18    determined in accordance with the determination of income
19    and distributive share of income under Sections 702 and 704
20    and Subchapter S of the Internal Revenue Code. The credit
21    shall be .5% of the basis for such property. The credit
22    shall be available only in the taxable year in which the
23    property is placed in service in the Enterprise Zone or
24    River Edge Redevelopment Zone and shall not be allowed to
25    the extent that it would reduce a taxpayer's liability for
26    the tax imposed by subsections (a) and (b) of this Section

 

 

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1    to below zero. For tax years ending on or after December
2    31, 1985, the credit shall be allowed for the tax year in
3    which the property is placed in service, or, if the amount
4    of the credit exceeds the tax liability for that year,
5    whether it exceeds the original liability or the liability
6    as later amended, such excess may be carried forward and
7    applied to the tax liability of the 5 taxable years
8    following the excess credit year. The credit shall be
9    applied to the earliest year for which there is a
10    liability. If there is credit from more than one tax year
11    that is available to offset a liability, the credit
12    accruing first in time shall be applied first.
13        (2) The term qualified property means property which:
14            (A) is tangible, whether new or used, including
15        buildings and structural components of buildings;
16            (B) is depreciable pursuant to Section 167 of the
17        Internal Revenue Code, except that "3-year property"
18        as defined in Section 168(c)(2)(A) of that Code is not
19        eligible for the credit provided by this subsection
20        (f);
21            (C) is acquired by purchase as defined in Section
22        179(d) of the Internal Revenue Code;
23            (D) is used in the Enterprise Zone or River Edge
24        Redevelopment Zone by the taxpayer; and
25            (E) has not been previously used in Illinois in
26        such a manner and by such a person as would qualify for

 

 

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1        the credit provided by this subsection (f) or
2        subsection (e).
3        (3) The basis of qualified property shall be the basis
4    used to compute the depreciation deduction for federal
5    income tax purposes.
6        (4) If the basis of the property for federal income tax
7    depreciation purposes is increased after it has been placed
8    in service in the Enterprise Zone or River Edge
9    Redevelopment Zone by the taxpayer, the amount of such
10    increase shall be deemed property placed in service on the
11    date of such increase in basis.
12        (5) The term "placed in service" shall have the same
13    meaning as under Section 46 of the Internal Revenue Code.
14        (6) If during any taxable year, any property ceases to
15    be qualified property in the hands of the taxpayer within
16    48 months after being placed in service, or the situs of
17    any qualified property is moved outside the Enterprise Zone
18    or River Edge Redevelopment Zone within 48 months after
19    being placed in service, the tax imposed under subsections
20    (a) and (b) of this Section 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

 

 

HB0091- 18 -LRB098 04258 HLH 34285 b

1    purposes of this paragraph (6), 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        (7) There shall be allowed an additional credit equal
6    to 0.5% of the basis of qualified property placed in
7    service during the taxable year in a River Edge
8    Redevelopment Zone, provided such property is placed in
9    service on or after July 1, 2006, and the taxpayer's base
10    employment within Illinois has increased by 1% or more over
11    the preceding year as determined by the taxpayer's
12    employment records filed with the Illinois Department of
13    Employment Security. Taxpayers who are new to Illinois
14    shall be deemed to have met the 1% growth in base
15    employment for the first year in which they file employment
16    records with the Illinois Department of Employment
17    Security. If, in any year, the increase in base employment
18    within Illinois over the preceding year is less than 1%,
19    the additional credit shall be limited to that percentage
20    times a fraction, the numerator of which is 0.5% and the
21    denominator of which is 1%, but shall not exceed 0.5%.
22    (g) Jobs Tax Credit; River Edge Redevelopment Zone and
23Foreign Trade Zone or Sub-Zone.
24        (1) A taxpayer conducting a trade or business, for
25    taxable years ending on or after December 31, 2006, in a
26    River Edge Redevelopment Zone or conducting a trade or

 

 

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1    business in a federally designated Foreign Trade Zone or
2    Sub-Zone shall be allowed a credit against the tax imposed
3    by subsections (a) and (b) of this Section in the amount of
4    $500 per eligible employee hired to work in the zone during
5    the taxable year.
6        (2) To qualify for the credit:
7            (A) the taxpayer must hire 5 or more eligible
8        employees to work in a River Edge Redevelopment Zone or
9        federally designated Foreign Trade Zone or Sub-Zone
10        during the taxable year;
11            (B) the taxpayer's total employment within the
12        River Edge Redevelopment Zone or federally designated
13        Foreign Trade Zone or Sub-Zone must increase by 5 or
14        more full-time employees beyond the total employed in
15        that zone at the end of the previous tax year for which
16        a jobs tax credit under this Section was taken, or
17        beyond the total employed by the taxpayer as of
18        December 31, 1985, whichever is later; and
19            (C) the eligible employees must be employed 180
20        consecutive days in order to be deemed hired for
21        purposes of this subsection.
22        (3) An "eligible employee" means an employee who is:
23            (A) Certified by the Department of Commerce and
24        Economic Opportunity as "eligible for services"
25        pursuant to regulations promulgated in accordance with
26        Title II of the Job Training Partnership Act, Training

 

 

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1        Services for the Disadvantaged or Title III of the Job
2        Training Partnership Act, Employment and Training
3        Assistance for Dislocated Workers Program.
4            (B) Hired after the River Edge Redevelopment Zone
5        or federally designated Foreign Trade Zone or Sub-Zone
6        was designated or the trade or business was located in
7        that zone, whichever is later.
8            (C) Employed in the River Edge Redevelopment Zone
9        or Foreign Trade Zone or Sub-Zone. An employee is
10        employed in a federally designated Foreign Trade Zone
11        or Sub-Zone if his services are rendered there or it is
12        the base of operations for the services performed.
13            (D) A full-time employee working 30 or more hours
14        per week.
15        (4) For tax years ending on or after December 31, 1985
16    and prior to December 31, 1988, the credit shall be allowed
17    for the tax year in which the eligible employees are hired.
18    For tax years ending on or after December 31, 1988, the
19    credit shall be allowed for the tax year immediately
20    following the tax year in which the eligible employees are
21    hired. If the amount of the credit exceeds the tax
22    liability for that year, whether it exceeds the original
23    liability or the liability as later amended, such excess
24    may be carried forward and applied to the tax liability of
25    the 5 taxable years following the excess credit year. The
26    credit shall be applied to the earliest year for which

 

 

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1    there is a liability. If there is credit from more than one
2    tax year that is available to offset a liability, earlier
3    credit shall be applied first.
4        (5) The Department of Revenue shall promulgate such
5    rules and regulations as may be deemed necessary to carry
6    out the purposes of this subsection (g).
7        (6) The credit shall be available for eligible
8    employees hired on or after January 1, 1986.
9    (h) Investment credit; High Impact Business.
10        (1) Subject to subsections (b) and (b-5) of Section 5.5
11    of the Illinois Enterprise Zone Act, a taxpayer shall be
12    allowed a credit against the tax imposed by subsections (a)
13    and (b) of this Section for investment in qualified
14    property which is placed in service by a Department of
15    Commerce and Economic Opportunity designated High Impact
16    Business. The credit shall be .5% of the basis for such
17    property. The credit shall not be available (i) until the
18    minimum investments in qualified property set forth in
19    subdivision (a)(3)(A) of Section 5.5 of the Illinois
20    Enterprise Zone Act have been satisfied or (ii) until the
21    time authorized in subsection (b-5) of the Illinois
22    Enterprise Zone Act for entities designated as High Impact
23    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
24    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
25    Act, and shall not be allowed to the extent that it would
26    reduce a taxpayer's liability for the tax imposed by

 

 

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

 

 

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1            (A) is tangible, whether new or used, including
2        buildings and structural components of buildings;
3            (B) is depreciable pursuant to Section 167 of the
4        Internal Revenue Code, except that "3-year property"
5        as defined in Section 168(c)(2)(A) of that Code is not
6        eligible for the credit provided by this subsection
7        (h);
8            (C) is acquired by purchase as defined in Section
9        179(d) of the Internal Revenue Code; and
10            (D) is not eligible for the Enterprise Zone
11        Investment Credit provided by subsection (f) of this
12        Section.
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 a federally designated Foreign Trade Zone or
19    Sub-Zone located in Illinois by the taxpayer, the amount of
20    such increase shall be deemed property placed in service on
21    the 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 ending on or before
25    December 31, 1996, any property ceases to be qualified
26    property in the hands of the taxpayer within 48 months

 

 

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1    after being placed in service, or the situs of any
2    qualified property is moved outside Illinois within 48
3    months after being placed in service, the tax imposed under
4    subsections (a) and (b) of this Section for such taxable
5    year shall be increased. Such increase shall be determined
6    by (i) recomputing the investment credit which would have
7    been allowed for the year in which credit for such property
8    was originally allowed by eliminating such property from
9    such computation, and (ii) subtracting such recomputed
10    credit from the amount of credit previously allowed. For
11    the purposes of this paragraph (6), a reduction of the
12    basis of qualified property resulting from a
13    redetermination of the purchase price shall be deemed a
14    disposition of qualified property to the extent of such
15    reduction.
16        (7) Beginning with tax years ending after December 31,
17    1996, if a taxpayer qualifies for the credit under this
18    subsection (h) and thereby is granted a tax abatement and
19    the taxpayer relocates its entire facility in violation of
20    the explicit terms and length of the contract under Section
21    18-183 of the Property Tax Code, the tax imposed under
22    subsections (a) and (b) of this Section shall be increased
23    for the taxable year in which the taxpayer relocated its
24    facility by an amount equal to the amount of credit
25    received by the taxpayer under this subsection (h).
26    (i) Credit for Personal Property Tax Replacement Income

 

 

HB0091- 25 -LRB098 04258 HLH 34285 b

1Tax. For tax years ending prior to December 31, 2003, a credit
2shall be allowed against the tax imposed by subsections (a) and
3(b) of this Section for the tax imposed by subsections (c) and
4(d) of this Section. This credit shall be computed by
5multiplying the tax imposed by subsections (c) and (d) of this
6Section by a fraction, the numerator of which is base income
7allocable to Illinois and the denominator of which is Illinois
8base income, and further multiplying the product by the tax
9rate imposed by subsections (a) and (b) of this Section.
10    Any credit earned on or after December 31, 1986 under this
11subsection which is unused in the year the credit is computed
12because it exceeds the tax liability imposed by subsections (a)
13and (b) for that year (whether it exceeds the original
14liability or the liability as later amended) may be carried
15forward and applied to the tax liability imposed by subsections
16(a) and (b) of the 5 taxable years following the excess credit
17year, provided that no credit may be carried forward to any
18year ending on or after December 31, 2003. This credit shall be
19applied first to the earliest year for which there is a
20liability. If there is a credit under this subsection from more
21than one tax year that is available to offset a liability the
22earliest credit arising under this subsection shall be applied
23first.
24    If, during any taxable year ending on or after December 31,
251986, the tax imposed by subsections (c) and (d) of this
26Section for which a taxpayer has claimed a credit under this

 

 

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1subsection (i) is reduced, the amount of credit for such tax
2shall also be reduced. Such reduction shall be determined by
3recomputing the credit to take into account the reduced tax
4imposed by subsections (c) and (d). If any portion of the
5reduced amount of credit has been carried to a different
6taxable year, an amended return shall be filed for such taxable
7year to reduce the amount of credit claimed.
8    (j) Training expense credit. Beginning with tax years
9ending on or after December 31, 1986 and prior to December 31,
102003, a taxpayer shall be allowed a credit against the tax
11imposed by subsections (a) and (b) under this Section for all
12amounts paid or accrued, on behalf of all persons employed by
13the taxpayer in Illinois or Illinois residents employed outside
14of Illinois by a taxpayer, for educational or vocational
15training in semi-technical or technical fields or semi-skilled
16or skilled fields, which were deducted from gross income in the
17computation of taxable income. The credit against the tax
18imposed by subsections (a) and (b) shall be 1.6% of such
19training expenses. For partners, shareholders of subchapter S
20corporations, and owners of limited liability companies, if the
21liability company is treated as a partnership for purposes of
22federal and State income taxation, there shall be allowed a
23credit under this subsection (j) to be determined in accordance
24with the determination of income and distributive share of
25income under Sections 702 and 704 and subchapter S of the
26Internal Revenue Code.

 

 

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1    Any credit allowed under this subsection which is unused in
2the year the credit is earned may be carried forward to each of
3the 5 taxable years following the year for which the credit is
4first computed until it is used. This credit shall be applied
5first to the earliest year for which there is a liability. If
6there is a credit under this subsection from more than one tax
7year that is available to offset a liability the earliest
8credit arising under this subsection shall be applied first. No
9carryforward credit may be claimed in any tax year ending on or
10after December 31, 2003.
11    (k) Research and development credit. For tax years ending
12after July 1, 1990 and prior to December 31, 2003, and
13beginning again for tax years ending on or after December 31,
142004, and ending prior to January 1, 2016, a taxpayer shall be
15allowed a credit against the tax imposed by subsections (a) and
16(b) of this Section for increasing research activities in this
17State. The credit allowed against the tax imposed by
18subsections (a) and (b) shall be equal to 6 1/2% of the
19qualifying expenditures for increasing research activities in
20this State. For partners, shareholders of subchapter S
21corporations, and owners of limited liability companies, if the
22liability company is treated as a partnership for purposes of
23federal and State income taxation, there shall be allowed a
24credit under this subsection to be determined in accordance
25with the determination of income and distributive share of
26income under Sections 702 and 704 and subchapter S of the

 

 

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1Internal Revenue Code.
2    For purposes of this subsection, "qualifying expenditures"
3means the qualifying expenditures as defined for the federal
4credit for increasing research activities which would be
5allowable under Section 41 of the Internal Revenue Code and
6which are conducted in this State, "qualifying expenditures for
7increasing research activities in this State" means the excess
8of qualifying expenditures for the taxable year in which
9incurred over qualifying expenditures for the base period,
10"qualifying expenditures for the base period" means the average
11of the qualifying expenditures for each year in the base
12period, and "base period" means the 3 taxable years immediately
13preceding the taxable year for which the determination is being
14made.
15    Any credit in excess of the tax liability for the taxable
16year may be carried forward. A taxpayer may elect to have the
17unused credit shown on its final completed return carried over
18as a credit against the tax liability for the following 5
19taxable years or until it has been fully used, whichever occurs
20first; provided that no credit earned in a tax year ending
21prior to December 31, 2003 may be carried forward to any year
22ending on or after December 31, 2003.
23    If an unused credit is carried forward to a given year from
242 or more earlier years, that credit arising in the earliest
25year will be applied first against the tax liability for the
26given year. If a tax liability for the given year still

 

 

HB0091- 29 -LRB098 04258 HLH 34285 b

1remains, the credit from the next earliest year will then be
2applied, and so on, until all credits have been used or no tax
3liability for the given year remains. Any remaining unused
4credit or credits then will be carried forward to the next
5following year in which a tax liability is incurred, except
6that no credit can be carried forward to a year which is more
7than 5 years after the year in which the expense for which the
8credit is given was incurred.
9    No inference shall be drawn from this amendatory Act of the
1091st General Assembly in construing this Section for taxable
11years beginning before January 1, 1999.
12    (l) Environmental Remediation Tax Credit.
13        (i) For tax years ending after December 31, 1997 and on
14    or before December 31, 2001, a taxpayer shall be allowed a
15    credit against the tax imposed by subsections (a) and (b)
16    of this Section for certain amounts paid for unreimbursed
17    eligible remediation costs, as specified in this
18    subsection. For purposes of this Section, "unreimbursed
19    eligible remediation costs" means costs approved by the
20    Illinois Environmental Protection Agency ("Agency") under
21    Section 58.14 of the Environmental Protection Act that were
22    paid in performing environmental remediation at a site for
23    which a No Further Remediation Letter was issued by the
24    Agency and recorded under Section 58.10 of the
25    Environmental Protection Act. The credit must be claimed
26    for the taxable year in which Agency approval of the

 

 

HB0091- 30 -LRB098 04258 HLH 34285 b

1    eligible remediation costs is granted. The credit is not
2    available to any taxpayer if the taxpayer or any related
3    party caused or contributed to, in any material respect, a
4    release of regulated substances on, in, or under the site
5    that was identified and addressed by the remedial action
6    pursuant to the Site Remediation Program of the
7    Environmental Protection Act. After the Pollution Control
8    Board rules are adopted pursuant to the Illinois
9    Administrative Procedure Act for the administration and
10    enforcement of Section 58.9 of the Environmental
11    Protection Act, determinations as to credit availability
12    for purposes of this Section shall be made consistent with
13    those rules. For purposes of this Section, "taxpayer"
14    includes a person whose tax attributes the taxpayer has
15    succeeded to under Section 381 of the Internal Revenue Code
16    and "related party" includes the persons disallowed a
17    deduction for losses by paragraphs (b), (c), and (f)(1) of
18    Section 267 of the Internal Revenue Code by virtue of being
19    a related taxpayer, as well as any of its partners. The
20    credit allowed against the tax imposed by subsections (a)
21    and (b) shall be equal to 25% of the unreimbursed eligible
22    remediation costs in excess of $100,000 per site, except
23    that the $100,000 threshold shall not apply to any site
24    contained in an enterprise zone as determined by the
25    Department of Commerce and Community Affairs (now
26    Department of Commerce and Economic Opportunity). The

 

 

HB0091- 31 -LRB098 04258 HLH 34285 b

1    total credit allowed shall not exceed $40,000 per year with
2    a maximum total of $150,000 per site. For partners and
3    shareholders of subchapter S corporations, there shall be
4    allowed a credit under this subsection to be determined in
5    accordance with the determination of income and
6    distributive share of income under Sections 702 and 704 and
7    subchapter S of the Internal Revenue Code.
8        (ii) A credit allowed under this subsection that is
9    unused in the year the credit is earned may be carried
10    forward to each of the 5 taxable years following the year
11    for which the credit is first earned until it is used. The
12    term "unused credit" does not include any amounts of
13    unreimbursed eligible remediation costs in excess of the
14    maximum credit per site authorized under paragraph (i).
15    This credit shall be applied first to the earliest year for
16    which there is a liability. If there is a credit under this
17    subsection from more than one tax year that is available to
18    offset a liability, the earliest credit arising under this
19    subsection shall be applied first. A credit allowed under
20    this subsection may be sold to a buyer as part of a sale of
21    all or part of the remediation site for which the credit
22    was granted. The purchaser of a remediation site and the
23    tax credit shall succeed to the unused credit and remaining
24    carry-forward period of the seller. To perfect the
25    transfer, the assignor shall record the transfer in the
26    chain of title for the site and provide written notice to

 

 

HB0091- 32 -LRB098 04258 HLH 34285 b

1    the Director of the Illinois Department of Revenue of the
2    assignor's intent to sell the remediation site and the
3    amount of the tax credit to be transferred as a portion of
4    the sale. In no event may a credit be transferred to any
5    taxpayer if the taxpayer or a related party would not be
6    eligible under the provisions of subsection (i).
7        (iii) For purposes of this Section, the term "site"
8    shall have the same meaning as under Section 58.2 of the
9    Environmental Protection Act.
10    (m) Education expense credit. Beginning with tax years
11ending after December 31, 1999, a taxpayer who is the custodian
12of one or more qualifying pupils shall be allowed a credit
13against the tax imposed by subsections (a) and (b) of this
14Section for qualified education expenses incurred on behalf of
15the qualifying pupils. The credit shall be equal to 25% of
16qualified education expenses, but in no event may the total
17credit under this subsection claimed by a family that is the
18custodian of qualifying pupils exceed $500. In no event shall a
19credit under this subsection reduce the taxpayer's liability
20under this Act to less than zero. This subsection is exempt
21from the provisions of Section 250 of this Act.
22    For purposes of this subsection:
23    "Qualifying pupils" means individuals who (i) are
24residents of the State of Illinois, (ii) are under the age of
2521 at the close of the school year for which a credit is
26sought, and (iii) during the school year for which a credit is

 

 

HB0091- 33 -LRB098 04258 HLH 34285 b

1sought were full-time pupils enrolled in a kindergarten through
2twelfth grade education program at any school, as defined in
3this subsection.
4    "Qualified education expense" means the amount incurred on
5behalf of a qualifying pupil in excess of $250 for tuition,
6book fees, and lab fees at the school in which the pupil is
7enrolled during the regular school year.
8    "School" means any public or nonpublic elementary or
9secondary school in Illinois that is in compliance with Title
10VI of the Civil Rights Act of 1964 and attendance at which
11satisfies the requirements of Section 26-1 of the School Code,
12except that nothing shall be construed to require a child to
13attend any particular public or nonpublic school to qualify for
14the credit under this Section.
15    "Custodian" means, with respect to qualifying pupils, an
16Illinois resident who is a parent, the parents, a legal
17guardian, or the legal guardians of the qualifying pupils.
18    (n) River Edge Redevelopment Zone site remediation tax
19credit.
20        (i) For tax years ending on or after December 31, 2006,
21    a taxpayer shall be allowed a credit against the tax
22    imposed by subsections (a) and (b) of this Section for
23    certain amounts paid for unreimbursed eligible remediation
24    costs, as specified in this subsection. For purposes of
25    this Section, "unreimbursed eligible remediation costs"
26    means costs approved by the Illinois Environmental

 

 

HB0091- 34 -LRB098 04258 HLH 34285 b

1    Protection Agency ("Agency") under Section 58.14a of the
2    Environmental Protection Act that were paid in performing
3    environmental remediation at a site within a River Edge
4    Redevelopment Zone for which a No Further Remediation
5    Letter was issued by the Agency and recorded under Section
6    58.10 of the Environmental Protection Act. The credit must
7    be claimed for the taxable year in which Agency approval of
8    the eligible remediation costs is granted. The credit is
9    not available to any taxpayer if the taxpayer or any
10    related party caused or contributed to, in any material
11    respect, a release of regulated substances on, in, or under
12    the site that was identified and addressed by the remedial
13    action pursuant to the Site Remediation Program of the
14    Environmental Protection Act. Determinations as to credit
15    availability for purposes of this Section shall be made
16    consistent with rules adopted by the Pollution Control
17    Board pursuant to the Illinois Administrative Procedure
18    Act for the administration and enforcement of Section 58.9
19    of the Environmental Protection Act. For purposes of this
20    Section, "taxpayer" includes a person whose tax attributes
21    the taxpayer has succeeded to under Section 381 of the
22    Internal Revenue Code and "related party" includes the
23    persons disallowed a deduction for losses by paragraphs
24    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
25    Code by virtue of being a related taxpayer, as well as any
26    of its partners. The credit allowed against the tax imposed

 

 

HB0091- 35 -LRB098 04258 HLH 34285 b

1    by subsections (a) and (b) shall be equal to 25% of the
2    unreimbursed eligible remediation costs in excess of
3    $100,000 per site.
4        (ii) A credit allowed under this subsection that is
5    unused in the year the credit is earned may be carried
6    forward to each of the 5 taxable years following the year
7    for which the credit is first earned until it is used. This
8    credit shall be applied first to the earliest year for
9    which there is a liability. If there is a credit under this
10    subsection from more than one tax year that is available to
11    offset a liability, the earliest credit arising under this
12    subsection shall be applied first. A credit allowed under
13    this subsection may be sold to a buyer as part of a sale of
14    all or part of the remediation site for which the credit
15    was granted. The purchaser of a remediation site and the
16    tax credit shall succeed to the unused credit and remaining
17    carry-forward period of the seller. To perfect the
18    transfer, the assignor shall record the transfer in the
19    chain of title for the site and provide written notice to
20    the Director of the Illinois Department of Revenue of the
21    assignor's intent to sell the remediation site and the
22    amount of the tax credit to be transferred as a portion of
23    the sale. In no event may a credit be transferred to any
24    taxpayer if the taxpayer or a related party would not be
25    eligible under the provisions of subsection (i).
26        (iii) For purposes of this Section, the term "site"

 

 

HB0091- 36 -LRB098 04258 HLH 34285 b

1    shall have the same meaning as under Section 58.2 of the
2    Environmental Protection Act.
3(Source: P.A. 96-115, eff. 7-31-09; 96-116, eff. 7-31-09;
496-937, eff. 6-23-10; 96-1000, eff. 7-2-10; 96-1496, eff.
51-13-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905, eff.
68-7-12.)
 
7    (35 ILCS 5/201.5)
8    Sec. 201.5. State spending limitation and tax reduction.
9    (a) (Blank). If, beginning in State fiscal year 2012 and
10continuing through State fiscal year 2015, State spending for
11any fiscal year exceeds the State spending limitation set forth
12in subsection (b) of this Section, then the tax rates set forth
13in subsection (b) of Section 201 of this Act shall be reduced,
14according to the procedures set forth in this Section, to 3% of
15the taxpayer's net income for individuals, trusts, and estates
16and to 4.8% of the taxpayer's net income for corporations. For
17all taxable years following the taxable year in which the rate
18has been reduced pursuant to this Section, the tax rate set
19forth in subsection (b) of Section 201 of this Act shall be 3%
20of the taxpayer's net income for individuals, trusts, and
21estates and 4.8% of the taxpayer's net income for corporations.
22    (b) The State spending limitation for fiscal years 2012
23through 2015 shall be as follows: (i) for fiscal year 2012,
24$36,818,000,000; (ii) for fiscal year 2013, $37,554,000,000;
25(iii) for fiscal year 2014, $38,305,000,000; and (iv) for

 

 

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1fiscal year 2015, $39,072,000,000.
2    (c) Notwithstanding any other provision of law to the
3contrary, the Auditor General shall examine each Public Act
4authorizing State spending from State general funds and prepare
5a report no later than 30 days after receiving notification of
6the Public Act from the Secretary of State or 60 days after the
7effective date of the Public Act, whichever is earlier. The
8Auditor General shall file the report with the Secretary of
9State and copies with the Governor, the State Treasurer, the
10State Comptroller, the Senate, and the House of
11Representatives. The report shall indicate: (i) the amount of
12State spending set forth in the applicable Public Act; (ii) the
13total amount of State spending authorized by law for the
14applicable fiscal year as of the date of the report; and (iii)
15whether State spending exceeds the State spending limitation
16set forth in subsection (b). The Auditor General may examine
17multiple Public Acts in one consolidated report, provided that
18each Public Act is examined within the time period mandated by
19this subsection (c). The Auditor General shall issue reports in
20accordance with this Section through June 30, 2015 or the
21effective date of a reduction in the rate of tax imposed by
22subsections (a) and (b) of Section 201 of this Act pursuant to
23this Section, whichever is earlier.
24    At the request of the Auditor General, each State agency
25shall, without delay, make available to the Auditor General or
26his or her designated representative any record or information

 

 

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1requested and shall provide for examination or copying all
2records, accounts, papers, reports, vouchers, correspondence,
3books and other documentation in the custody of that agency,
4including information stored in electronic data processing
5systems, which is related to or within the scope of a report
6prepared under this Section. The Auditor General shall report
7to the Governor each instance in which a State agency fails to
8cooperate promptly and fully with his or her office as required
9by this Section.
10    The Auditor General's report shall not be in the nature of
11a post-audit or examination and shall not lead to the issuance
12of an opinion as that term is defined in generally accepted
13government auditing standards.
14    (d) If the Auditor General reports that State spending has
15exceeded the State spending limitation set forth in subsection
16(b) and if the Governor has not been presented with a bill or
17bills passed by the General Assembly to reduce State spending
18to a level that does not exceed the State spending limitation
19within 45 calendar days of receipt of the Auditor General's
20report, then the Governor may, for the purpose of reducing
21State spending to a level that does not exceed the State
22spending limitation set forth in subsection (b), designate
23amounts to be set aside as a reserve from the amounts
24appropriated from the State general funds for all boards,
25commissions, agencies, institutions, authorities, colleges,
26universities, and bodies politic and corporate of the State,

 

 

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1but not other constitutional officers, the legislative or
2judicial branch, the office of the Executive Inspector General,
3or the Executive Ethics Commission. Such a designation must be
4made within 15 calendar days after the end of that 45-day
5period. If the Governor designates amounts to be set aside as a
6reserve, the Governor shall give notice of the designation to
7the Auditor General, the State Treasurer, the State
8Comptroller, the Senate, and the House of Representatives. The
9amounts placed in reserves shall not be transferred, obligated,
10encumbered, expended, or otherwise committed unless so
11authorized by law. Any amount placed in reserves is not State
12spending and shall not be considered when calculating the total
13amount of State spending. Any Public Act authorizing the use of
14amounts placed in reserve by the Governor is considered State
15spending, unless such Public Act authorizes the use of amounts
16placed in reserves in response to a fiscal emergency under
17subsection (g).
18    (e) If the Auditor General reports under subsection (c)
19that State spending has exceeded the State spending limitation
20set forth in subsection (b), then the Auditor General shall
21issue a supplemental report no sooner than the 61st day and no
22later than the 65th day after issuing the report pursuant to
23subsection (c). The supplemental report shall: (i) summarize
24details of actions taken by the General Assembly and the
25Governor after the issuance of the initial report to reduce
26State spending, if any, (ii) indicate whether the level of

 

 

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1State spending has changed since the initial report, and (iii)
2indicate whether State spending exceeds the State spending
3limitation. The Auditor General shall file the report with the
4Secretary of State and copies with the Governor, the State
5Treasurer, the State Comptroller, the Senate, and the House of
6Representatives, and shall post a copy of the report on his or
7her website. If the supplemental report of the Auditor General
8provides that State spending exceeds the State spending
9limitation, then the rate of tax imposed by subsections (a) and
10(b) of Section 201 is reduced as provided in this Section
11beginning on the first day of the first month to occur not less
12than 30 days after issuance of the supplemental report.
13    (f) (Blank). For any taxable year in which the rates of tax
14have been reduced under this Section, the tax imposed by
15subsections (a) and (b) of Section 201 shall be determined as
16follows:
17        (1) In the case of an individual, trust, or estate, the
18    tax shall be imposed in an amount equal to the sum of (i)
19    the rate applicable to the taxpayer under subsection (b) of
20    Section 201 (without regard to the provisions of this
21    Section) times the taxpayer's net income for any portion of
22    the taxable year prior to the effective date of the
23    reduction and (ii) 3% of the taxpayer's net income for any
24    portion of the taxable year on or after the effective date
25    of the reduction.
26        (2) In the case of a corporation, the tax shall be

 

 

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1    imposed in an amount equal to the sum of (i) the rate
2    applicable to the taxpayer under subsection (b) of Section
3    201 (without regard to the provisions of this Section)
4    times the taxpayer's net income for any portion of the
5    taxable year prior to the effective date of the reduction
6    and (ii) 4.8% of the taxpayer's net income for any portion
7    of the taxable year on or after the effective date of the
8    reduction.
9        (3) For any taxpayer for whom the rate has been reduced
10    under this Section for a portion of a taxable year, the
11    taxpayer shall determine the net income for each portion of
12    the taxable year following the rules set forth in Section
13    202.5 of this Act, using the effective date of the rate
14    reduction rather than the January 1 dates found in that
15    Section, and the day before the effective date of the rate
16    reduction rather than the December 31 dates found in that
17    Section.
18        (4) If the rate applicable to the taxpayer under
19    subsection (b) of Section 201 (without regard to the
20    provisions of this Section) changes during a portion of the
21    taxable year to which that rate is applied under paragraphs
22    (1) or (2) of this subsection (f), the tax for that portion
23    of the taxable year for purposes of paragraph (1) or (2) of
24    this subsection (f) shall be determined as if that portion
25    of the taxable year were a separate taxable year, following
26    the rules set forth in Section 202.5 of this Act. If the

 

 

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1    taxpayer elects to follow the rules set forth in subsection
2    (b) of Section 202.5, the taxpayer shall follow the rules
3    set forth in subsection (b) of Section 202.5 for all
4    purposes of this Section for that taxable year.
5    (g) Notwithstanding the State spending limitation set
6forth in subsection (b) of this Section, the Governor may
7declare a fiscal emergency by filing a declaration with the
8Secretary of State and copies with the State Treasurer, the
9State Comptroller, the Senate, and the House of
10Representatives. The declaration must be limited to only one
11State fiscal year, set forth compelling reasons for declaring a
12fiscal emergency, and request a specific dollar amount. Unless,
13within 10 calendar days of receipt of the Governor's
14declaration, the State Comptroller or State Treasurer notifies
15the Senate and the House of Representatives that he or she does
16not concur in the Governor's declaration, State spending
17authorized by law to address the fiscal emergency in an amount
18no greater than the dollar amount specified in the declaration
19shall not be considered "State spending" for purposes of the
20State spending limitation.
21    (h) As used in this Section:
22    "State general funds" means the General Revenue Fund, the
23Common School Fund, the General Revenue Common School Special
24Account Fund, the Education Assistance Fund, and the Budget
25Stabilization Fund.
26    "State spending" means (i) the total amount authorized for

 

 

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1spending by appropriation or statutory transfer from the State
2general funds in the applicable fiscal year, and (ii) any
3amounts the Governor places in reserves in accordance with
4subsection (d) that are subsequently released from reserves
5following authorization by a Public Act. For the purpose of
6this definition, "appropriation" means authority to spend
7money from a State general fund for a specific amount, purpose,
8and time period, including any supplemental appropriation or
9continuing appropriation, but does not include
10reappropriations from a previous fiscal year. For the purpose
11of this definition, "statutory transfer" means authority to
12transfer funds from one State general fund to any other fund in
13the State treasury, but does not include transfers made from
14one State general fund to another State general fund.
15    "State spending limitation" means the amount described in
16subsection (b) of this Section for the applicable fiscal year.
17(Source: P.A. 96-1496, eff. 1-13-11; 97-813, eff. 7-13-12.)
 
18    (35 ILCS 5/207)  (from Ch. 120, par. 2-207)
19    Sec. 207. Net Losses.
20    (a) If after applying all of the (i) modifications provided
21for in paragraph (2) of Section 203(b), paragraph (2) of
22Section 203(c) and paragraph (2) of Section 203(d) and (ii) the
23allocation and apportionment provisions of Article 3 of this
24Act and subsection (c) of this Section, the taxpayer's net
25income results in a loss;

 

 

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1        (1) for any taxable year ending prior to December 31,
2    1999, such loss shall be allowed as a carryover or
3    carryback deduction in the manner allowed under Section 172
4    of the Internal Revenue Code;
5        (2) for any taxable year ending on or after December
6    31, 1999 and prior to December 31, 2003, such loss shall be
7    allowed as a carryback to each of the 2 taxable years
8    preceding the taxable year of such loss and shall be a net
9    operating loss carryover to each of the 20 taxable years
10    following the taxable year of such loss; and
11        (3) for any taxable year ending on or after December
12    31, 2003, such loss shall be allowed as a net operating
13    loss carryover to each of the 12 taxable years following
14    the taxable year of such loss, except as provided in
15    subsection (d).
16    (a-5) Election to relinquish carryback and order of
17application of losses.
18            (A) For losses incurred in tax years ending prior
19        to December 31, 2003, the taxpayer may elect to
20        relinquish the entire carryback period with respect to
21        such loss. Such election shall be made in the form and
22        manner prescribed by the Department and shall be made
23        by the due date (including extensions of time) for
24        filing the taxpayer's return for the taxable year in
25        which such loss is incurred, and such election, once
26        made, shall be irrevocable.

 

 

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1            (B) The entire amount of such loss shall be carried
2        to the earliest taxable year to which such loss may be
3        carried. The amount of such loss which shall be carried
4        to each of the other taxable years shall be the excess,
5        if any, of the amount of such loss over the sum of the
6        deductions for carryback or carryover of such loss
7        allowable for each of the prior taxable years to which
8        such loss may be carried.
9    (b) Any loss determined under subsection (a) of this
10Section must be carried back or carried forward in the same
11manner for purposes of subsections (a) and (b) of Section 201
12of this Act as for purposes of subsections (c) and (d) of
13Section 201 of this Act.
14    (c) Notwithstanding any other provision of this Act, for
15each taxable year ending on or after December 31, 2008, for
16purposes of computing the loss for the taxable year under
17subsection (a) of this Section and the deduction taken into
18account for the taxable year for a net operating loss carryover
19under paragraphs (1), (2), and (3) of subsection (a) of this
20Section, the loss and net operating loss carryover shall be
21reduced in an amount equal to the reduction to the net
22operating loss and net operating loss carryover to the taxable
23year, respectively, required under Section 108(b)(2)(A) of the
24Internal Revenue Code, multiplied by a fraction, the numerator
25of which is the amount of discharge of indebtedness income that
26is excluded from gross income for the taxable year (but only if

 

 

HB0091- 46 -LRB098 04258 HLH 34285 b

1the taxable year ends on or after December 31, 2008) under
2Section 108(a) of the Internal Revenue Code and that would have
3been allocated and apportioned to this State under Article 3 of
4this Act but for that exclusion, and the denominator of which
5is the total amount of discharge of indebtedness income
6excluded from gross income under Section 108(a) of the Internal
7Revenue Code for the taxable year. The reduction required under
8this subsection (c) shall be made after the determination of
9Illinois net income for the taxable year in which the
10indebtedness is discharged.
11    (d) In the case of a corporation (other than a Subchapter S
12corporation), no carryover deduction shall be allowed under
13this Section for any taxable year ending after December 31,
142010 and prior to December 31, 2012, and no carryover deduction
15shall exceed $100,000 for any taxable year ending on or after
16December 31, 2012 and prior to December 31, 2014; provided
17that, for purposes of determining the taxable years to which a
18net loss may be carried under subsection (a) of this Section,
19no taxable year for which a deduction is disallowed under this
20subsection, or for which the deduction would exceed $100,000 if
21not for this subsection, shall be counted.
22    (e) In the case of a residual interest holder in a real
23estate mortgage investment conduit subject to Section 860E of
24the Internal Revenue Code, the net loss in subsection (a) shall
25be equal to:
26        (1) the amount computed under subsection (a), without

 

 

HB0091- 47 -LRB098 04258 HLH 34285 b

1    regard to this subsection (e), or if that amount is
2    positive, zero;
3        (2) minus an amount equal to the amount computed under
4    subsection (a), without regard to this subsection (e),
5    minus the amount that would be computed under subsection
6    (a) if the taxpayer's federal taxable income were computed
7    without regard to Section 860E of the Internal Revenue Code
8    and without regard to this subsection (e).
9    The modification in this subsection (e) is exempt from the
10provisions of Section 250.
11(Source: P.A. 96-1496, eff. 1-13-11; 97-507, eff. 8-23-11;
1297-636, eff. 6-1-12.)
 
13    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
14    Sec. 901. Collection Authority.
15    (a) In general.
16    The Department shall collect the taxes imposed by this Act.
17The Department shall collect certified past due child support
18amounts under Section 2505-650 of the Department of Revenue Law
19(20 ILCS 2505/2505-650). Except as provided in subsections (c)
20and , (e), (f), and (g) of this Section, money collected
21pursuant to subsections (a) and (b) of Section 201 of this Act
22shall be paid into the General Revenue Fund in the State
23treasury; money collected pursuant to subsections (c) and (d)
24of Section 201 of this Act shall be paid into the Personal
25Property Tax Replacement Fund, a special fund in the State

 

 

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1Treasury; and money collected under Section 2505-650 of the
2Department of Revenue Law (20 ILCS 2505/2505-650) shall be paid
3into the Child Support Enforcement Trust Fund, a special fund
4outside the State Treasury, or to the State Disbursement Unit
5established under Section 10-26 of the Illinois Public Aid
6Code, as directed by the Department of Healthcare and Family
7Services.
8    (b) Local Government Distributive Fund.
9    Beginning August 1, 1969, and continuing through June 30,
101994, the Treasurer shall transfer each month from the General
11Revenue Fund to a special fund in the State treasury, to be
12known as the "Local Government Distributive Fund", an amount
13equal to 1/12 of the net revenue realized from the tax imposed
14by subsections (a) and (b) of Section 201 of this Act during
15the preceding month. Beginning July 1, 1994, and continuing
16through June 30, 1995, the Treasurer shall transfer each month
17from the General Revenue Fund to the Local Government
18Distributive Fund an amount equal to 1/11 of the net revenue
19realized from the tax imposed by subsections (a) and (b) of
20Section 201 of this Act during the preceding month. Beginning
21July 1, 1995 and continuing through January 31, 2011, and
22beginning again on February 1, 2013, the Treasurer shall
23transfer each month from the General Revenue Fund to the Local
24Government Distributive Fund an amount equal to the net of (i)
251/10 of the net revenue realized from the tax imposed by
26subsections (a) and (b) of Section 201 of the Illinois Income

 

 

HB0091- 49 -LRB098 04258 HLH 34285 b

1Tax Act during the preceding month (ii) minus, beginning July
21, 2003 and ending June 30, 2004, $6,666,666, and beginning
3July 1, 2004, zero. Beginning February 1, 2011, and continuing
4through January 31, 2013, January 31, 2015, the Treasurer shall
5transfer each month from the General Revenue Fund to the Local
6Government Distributive Fund an amount equal to the sum of (i)
76% (10% of the ratio of the 3% individual income tax rate prior
8to 2011 to the 5% individual income tax rate after 2010) of the
9net revenue realized from the tax imposed by subsections (a)
10and (b) of Section 201 of this Act upon individuals, trusts,
11and estates during the preceding month and (ii) 6.86% (10% of
12the ratio of the 4.8% corporate income tax rate prior to 2011
13to the 7% corporate income tax rate after 2010) of the net
14revenue realized from the tax imposed by subsections (a) and
15(b) of Section 201 of this Act upon corporations during the
16preceding month. Beginning February 1, 2015 and continuing
17through January 31, 2025, the Treasurer shall transfer each
18month from the General Revenue Fund to the Local Government
19Distributive Fund an amount equal to the sum of (i) 8% (10% of
20the ratio of the 3% individual income tax rate prior to 2011 to
21the 3.75% individual income tax rate after 2014) of the net
22revenue realized from the tax imposed by subsections (a) and
23(b) of Section 201 of this Act upon individuals, trusts, and
24estates during the preceding month and (ii) 9.14% (10% of the
25ratio of the 4.8% corporate income tax rate prior to 2011 to
26the 5.25% corporate income tax rate after 2014) of the net

 

 

HB0091- 50 -LRB098 04258 HLH 34285 b

1revenue realized from the tax imposed by subsections (a) and
2(b) of Section 201 of this Act upon corporations during the
3preceding month. Beginning February 1, 2025, the Treasurer
4shall transfer each month from the General Revenue Fund to the
5Local Government Distributive Fund an amount equal to the sum
6of (i) 9.23% (10% of the ratio of the 3% individual income tax
7rate prior to 2011 to the 3.25% individual income tax rate
8after 2024) of the net revenue realized from the tax imposed by
9subsections (a) and (b) of Section 201 of this Act upon
10individuals, trusts, and estates during the preceding month and
11(ii) 10% of the net revenue realized from the tax imposed by
12subsections (a) and (b) of Section 201 of this Act upon
13corporations during the preceding month. Net revenue realized
14for a month shall be defined as the revenue from the tax
15imposed by subsections (a) and (b) of Section 201 of this Act
16which is deposited in the General Revenue Fund, the Education
17Assistance Fund, and the Income Tax Surcharge Local Government
18Distributive Fund, the Fund for the Advancement of Education,
19and the Commitment to Human Services Fund during the month
20minus the amount paid out of the General Revenue Fund in State
21warrants during that same month as refunds to taxpayers for
22overpayment of liability under the tax imposed by subsections
23(a) and (b) of Section 201 of this Act.
24    (c) Deposits Into Income Tax Refund Fund.
25        (1) Beginning on January 1, 1989 and thereafter, the
26    Department shall deposit a percentage of the amounts

 

 

HB0091- 51 -LRB098 04258 HLH 34285 b

1    collected pursuant to subsections (a) and (b)(1), (2), and
2    (3), of Section 201 of this Act into a fund in the State
3    treasury known as the Income Tax Refund Fund. The
4    Department shall deposit 6% of such amounts during the
5    period beginning January 1, 1989 and ending on June 30,
6    1989. Beginning with State fiscal year 1990 and for each
7    fiscal year thereafter, the percentage deposited into the
8    Income Tax Refund Fund during a fiscal year shall be the
9    Annual Percentage. For fiscal years 1999 through 2001, the
10    Annual Percentage shall be 7.1%. For fiscal year 2003, the
11    Annual Percentage shall be 8%. For fiscal year 2004, the
12    Annual Percentage shall be 11.7%. Upon the effective date
13    of this amendatory Act of the 93rd General Assembly, the
14    Annual Percentage shall be 10% for fiscal year 2005. For
15    fiscal year 2006, the Annual Percentage shall be 9.75%. For
16    fiscal year 2007, the Annual Percentage shall be 9.75%. For
17    fiscal year 2008, the Annual Percentage shall be 7.75%. For
18    fiscal year 2009, the Annual Percentage shall be 9.75%. For
19    fiscal year 2010, the Annual Percentage shall be 9.75%. For
20    fiscal year 2011, the Annual Percentage shall be 8.75%. For
21    fiscal year 2012, the Annual Percentage shall be 8.75%. For
22    fiscal year 2013, the Annual Percentage shall be 9.75%. For
23    all other fiscal years, the Annual Percentage shall be
24    calculated as a fraction, the numerator of which shall be
25    the amount of refunds approved for payment by the
26    Department during the preceding fiscal year as a result of

 

 

HB0091- 52 -LRB098 04258 HLH 34285 b

1    overpayment of tax liability under subsections (a) and
2    (b)(1), (2), and (3) of Section 201 of this Act plus the
3    amount of such refunds remaining approved but unpaid at the
4    end of the preceding fiscal year, minus the amounts
5    transferred into the Income Tax Refund Fund from the
6    Tobacco Settlement Recovery Fund, and the denominator of
7    which shall be the amounts which will be collected pursuant
8    to subsections (a) and (b)(1), (2), and (3) of Section 201
9    of this Act during the preceding fiscal year; except that
10    in State fiscal year 2002, the Annual Percentage shall in
11    no event exceed 7.6%. The Director of Revenue shall certify
12    the Annual Percentage to the Comptroller on the last
13    business day of the fiscal year immediately preceding the
14    fiscal year for which it is to be effective.
15        (2) Beginning on January 1, 1989 and thereafter, the
16    Department shall deposit a percentage of the amounts
17    collected pursuant to subsections (a) and (b)(6), (7), and
18    (8), (c) and (d) of Section 201 of this Act into a fund in
19    the State treasury known as the Income Tax Refund Fund. The
20    Department shall deposit 18% of such amounts during the
21    period beginning January 1, 1989 and ending on June 30,
22    1989. Beginning with State fiscal year 1990 and for each
23    fiscal year thereafter, the percentage deposited into the
24    Income Tax Refund Fund during a fiscal year shall be the
25    Annual Percentage. For fiscal years 1999, 2000, and 2001,
26    the Annual Percentage shall be 19%. For fiscal year 2003,

 

 

HB0091- 53 -LRB098 04258 HLH 34285 b

1    the Annual Percentage shall be 27%. For fiscal year 2004,
2    the Annual Percentage shall be 32%. Upon the effective date
3    of this amendatory Act of the 93rd General Assembly, the
4    Annual Percentage shall be 24% for fiscal year 2005. For
5    fiscal year 2006, the Annual Percentage shall be 20%. For
6    fiscal year 2007, the Annual Percentage shall be 17.5%. For
7    fiscal year 2008, the Annual Percentage shall be 15.5%. For
8    fiscal year 2009, the Annual Percentage shall be 17.5%. For
9    fiscal year 2010, the Annual Percentage shall be 17.5%. For
10    fiscal year 2011, the Annual Percentage shall be 17.5%. For
11    fiscal year 2012, the Annual Percentage shall be 17.5%. For
12    fiscal year 2013, the Annual Percentage shall be 14%. For
13    all other fiscal years, the Annual Percentage shall be
14    calculated as a fraction, the numerator of which shall be
15    the amount of refunds approved for payment by the
16    Department during the preceding fiscal year as a result of
17    overpayment of tax liability under subsections (a) and
18    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
19    Act plus the amount of such refunds remaining approved but
20    unpaid at the end of the preceding fiscal year, and the
21    denominator of which shall be the amounts which will be
22    collected pursuant to subsections (a) and (b)(6), (7), and
23    (8), (c) and (d) of Section 201 of this Act during the
24    preceding fiscal year; except that in State fiscal year
25    2002, the Annual Percentage shall in no event exceed 23%.
26    The Director of Revenue shall certify the Annual Percentage

 

 

HB0091- 54 -LRB098 04258 HLH 34285 b

1    to the Comptroller on the last business day of the fiscal
2    year immediately preceding the fiscal year for which it is
3    to be effective.
4        (3) The Comptroller shall order transferred and the
5    Treasurer shall transfer from the Tobacco Settlement
6    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
7    in January, 2001, (ii) $35,000,000 in January, 2002, and
8    (iii) $35,000,000 in January, 2003.
9    (d) Expenditures from Income Tax Refund Fund.
10        (1) Beginning January 1, 1989, money in the Income Tax
11    Refund Fund shall be expended exclusively for the purpose
12    of paying refunds resulting from overpayment of tax
13    liability under Section 201 of this Act, for paying rebates
14    under Section 208.1 in the event that the amounts in the
15    Homeowners' Tax Relief Fund are insufficient for that
16    purpose, and for making transfers pursuant to this
17    subsection (d).
18        (2) The Director shall order payment of refunds
19    resulting from overpayment of tax liability under Section
20    201 of this Act from the Income Tax Refund Fund only to the
21    extent that amounts collected pursuant to Section 201 of
22    this Act and transfers pursuant to this subsection (d) and
23    item (3) of subsection (c) have been deposited and retained
24    in the Fund.
25        (3) As soon as possible after the end of each fiscal
26    year, the Director shall order transferred and the State

 

 

HB0091- 55 -LRB098 04258 HLH 34285 b

1    Treasurer and State Comptroller shall transfer from the
2    Income Tax Refund Fund to the Personal Property Tax
3    Replacement Fund an amount, certified by the Director to
4    the Comptroller, equal to the excess of the amount
5    collected pursuant to subsections (c) and (d) of Section
6    201 of this Act deposited into the Income Tax Refund Fund
7    during the fiscal year over the amount of refunds resulting
8    from overpayment of tax liability under subsections (c) and
9    (d) of Section 201 of this Act paid from the Income Tax
10    Refund Fund during the fiscal year.
11        (4) As soon as possible after the end of each fiscal
12    year, the Director shall order transferred and the State
13    Treasurer and State Comptroller shall transfer from the
14    Personal Property Tax Replacement Fund to the Income Tax
15    Refund Fund an amount, certified by the Director to the
16    Comptroller, equal to the excess of the amount of refunds
17    resulting from overpayment of tax liability under
18    subsections (c) and (d) of Section 201 of this Act paid
19    from the Income Tax Refund Fund during the fiscal year over
20    the amount collected pursuant to subsections (c) and (d) of
21    Section 201 of this Act deposited into the Income Tax
22    Refund Fund during the fiscal year.
23        (4.5) As soon as possible after the end of fiscal year
24    1999 and of each fiscal year thereafter, the Director shall
25    order transferred and the State Treasurer and State
26    Comptroller shall transfer from the Income Tax Refund Fund

 

 

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1    to the General Revenue Fund any surplus remaining in the
2    Income Tax Refund Fund as of the end of such fiscal year;
3    excluding for fiscal years 2000, 2001, and 2002 amounts
4    attributable to transfers under item (3) of subsection (c)
5    less refunds resulting from the earned income tax credit.
6        (5) This Act shall constitute an irrevocable and
7    continuing appropriation from the Income Tax Refund Fund
8    for the purpose of paying refunds upon the order of the
9    Director in accordance with the provisions of this Section.
10    (e) Deposits into the Education Assistance Fund and the
11Income Tax Surcharge Local Government Distributive Fund.
12    On July 1, 1991, and thereafter, of the amounts collected
13pursuant to subsections (a) and (b) of Section 201 of this Act,
14minus deposits into the Income Tax Refund Fund, the Department
15shall deposit 7.3% into the Education Assistance Fund in the
16State Treasury. Beginning July 1, 1991, and continuing through
17January 31, 1993, of the amounts collected pursuant to
18subsections (a) and (b) of Section 201 of the Illinois Income
19Tax Act, minus deposits into the Income Tax Refund Fund, the
20Department shall deposit 3.0% into the Income Tax Surcharge
21Local Government Distributive Fund in the State Treasury.
22Beginning February 1, 1993 and continuing through June 30,
231993, of the amounts collected pursuant to subsections (a) and
24(b) of Section 201 of the Illinois Income Tax Act, minus
25deposits into the Income Tax Refund Fund, the Department shall
26deposit 4.4% into the Income Tax Surcharge Local Government

 

 

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1Distributive Fund in the State Treasury. Beginning July 1,
21993, and continuing through June 30, 1994, of the amounts
3collected under subsections (a) and (b) of Section 201 of this
4Act, minus deposits into the Income Tax Refund Fund, the
5Department shall deposit 1.475% into the Income Tax Surcharge
6Local Government Distributive Fund in the State Treasury.
7    (f) (Blank). Deposits into the Fund for the Advancement of
8Education. Beginning February 1, 2015, the Department shall
9deposit the following portions of the revenue realized from the
10tax imposed upon individuals, trusts, and estates by
11subsections (a) and (b) of Section 201 of this Act during the
12preceding month, minus deposits into the Income Tax Refund
13Fund, into the Fund for the Advancement of Education:
14        (1) beginning February 1, 2015, and prior to February
15    1, 2025, 1/30; and
16        (2) beginning February 1, 2025, 1/26.
17    If the rate of tax imposed by subsection (a) and (b) of
18Section 201 is reduced pursuant to Section 201.5 of this Act,
19the Department shall not make the deposits required by this
20subsection (f) on or after the effective date of the reduction.
21    (g) (Blank). Deposits into the Commitment to Human Services
22Fund. Beginning February 1, 2015, the Department shall deposit
23the following portions of the revenue realized from the tax
24imposed upon individuals, trusts, and estates by subsections
25(a) and (b) of Section 201 of this Act during the preceding
26month, minus deposits into the Income Tax Refund Fund, into the

 

 

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1Commitment to Human Services Fund:
2        (1) beginning February 1, 2015, and prior to February
3    1, 2025, 1/30; and
4        (2) beginning February 1, 2025, 1/26.
5    If the rate of tax imposed by subsection (a) and (b) of
6Section 201 is reduced pursuant to Section 201.5 of this Act,
7the Department shall not make the deposits required by this
8subsection (g) on or after the effective date of the reduction.
9(Source: P.A. 96-45, eff. 7-15-09; 96-328, eff. 8-11-09;
1096-959, eff. 7-1-10; 96-1496, eff. 1-13-11; 97-72, eff. 7-1-11;
1197-732, eff. 6-30-12.)
 
12    (30 ILCS 105/5.786 rep.)
13    (30 ILCS 105/5.787 rep.)
14    (30 ILCS 105/6z-85 rep.)
15    (30 ILCS 105/6z-86 rep.)
16    Section 15. The State Finance Act is amended by repealing
17Sections 5.786, 5.787, 6z-85, and 6z-86.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.