Sen. Don Harmon

Filed: 4/11/2014

 

 


 

 


 
09800SB0350sam002LRB098 04642 HLH 58523 a

1
AMENDMENT TO SENATE BILL 350

2    AMENDMENT NO. ______. Amend Senate Bill 350 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Revenue Sharing Act is amended by
5changing Section 1 as follows:
 
6    (30 ILCS 115/1)  (from Ch. 85, par. 611)
7    Sec. 1. Local Government Distributive Fund.
8    (a) Through June 30, 1994, as soon as may be after the
9first day of each month the Department of Revenue shall certify
10to the Treasurer an amount equal to 1/12 of the net revenue
11realized from the tax imposed by subsections (a) and (b) of
12Section 201 of the Illinois Income Tax Act during the preceding
13month.
14     Beginning July 1, 1994, and continuing through June 30,
151995, as soon as may be after the first day of each month, the
16Department of Revenue shall certify to the Treasurer an amount

 

 

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1equal to 1/11 of the net revenue realized from the tax imposed
2by subsections (a) and (b) of Section 201 of the Illinois
3Income Tax Act during the preceding month.
4     Beginning July 1, 1995 and continuing through January 31,
52011, as soon as may be after the first day of each month, the
6Department of Revenue shall certify to the Treasurer an amount
7equal to 1/10 of the net revenue realized from the tax imposed
8by subsections (a) and (b) of Section 201 of the Illinois
9Income Tax Act during the preceding month.
10    For the purpose of this subsection (a), net Net revenue
11realized for a month shall be defined as the revenue from the
12tax imposed by subsections (a) and (b) of Section 201 of the
13Illinois Income Tax Act which is deposited in the General
14Revenue Fund, the Education Assistance Fund and the Income Tax
15Surcharge Local Government Distributive Fund during the month
16minus the amount paid out of the General Revenue Fund in State
17warrants during that same month as refunds to taxpayers for
18overpayment of liability under the tax imposed by subsections
19(a) and (b) of Section 201 of the Illinois Income Tax Act.
20     Upon receipt of a such certification under this subsection
21(a), the Treasurer shall transfer from the General Revenue Fund
22to a special fund in the State treasury, to be known as the
23"Local Government Distributive Fund", the amount shown on such
24certification.
25    (b) Beginning February 1, 2011, for all payments collected
26on or after December 31, 2010, the Treasurer shall transfer

 

 

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1from the General Revenue Fund into the Local Government
2Distributive Fund the amounts required to be transferred under
3subsection (b) of Section 901 of the Illinois Income Tax Act.
4    (c) All amounts paid into the Local Government Distributive
5Fund in accordance with this Section and allocated pursuant to
6this Act are appropriated on a continuing basis.
7(Source: P.A. 88-89.)
 
8    Section 10. If and only if Senate Joint Resolution
9Constitutional Amendment 40 of the 98th General Assembly is
10adopted in accordance with Section 7 of the Illinois
11Constitutional Amendment Act, the Illinois Income Tax Act is
12amended by changing Sections 201, 502, and 901 as follows:
 
13    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
14    Sec. 201. Tax Imposed.
15    (a) In general. A tax measured by net income is hereby
16imposed on every individual, corporation, trust and estate for
17each taxable year ending after July 31, 1969 on the privilege
18of earning or receiving income in or as a resident of this
19State. Such tax shall be in addition to all other occupation or
20privilege taxes imposed by this State or by any municipal
21corporation or political subdivision thereof.
22    (b) Rates. The tax imposed by subsection (a) of this
23Section shall be determined as follows, except as adjusted by
24subsection (d-1):

 

 

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

 

 

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1    taxable year.
2        (5.1) Graduated rates.
3            (A) In the case of an individual, spouses filing a
4        joint return, a trust, or an estate, for taxable years
5        ending on or after December 31, 2015, the tax imposed
6        by subsection (a) of this Section shall be computed at
7        the following rates:
8                (i) on that portion of the taxpayer's net
9            income that does not exceed $12,500, 2.9%; plus
10                (ii) on that portion of the taxpayer's net
11            income exceeding $12,500, but not exceeding
12            $180,000, 4.9%; plus
13                (iii) on that portion of the taxpayer's net
14            income exceeding $180,000, 6.9%.
15            (B) In the case of a nonresident or part-year
16        resident, the tax liability shall be determined by
17        applying the rates in this paragraph (5.1) to the net
18        income of the taxpayer computed as if the taxpayer were
19        a resident for the entire taxable year, and multiplying
20        the result by a fraction equal to the taxpayer's net
21        income (before the allowance of the net loss deduction
22        under Section 207 of this Act in the case of a trust or
23        estate) divided by the net income (before the allowance
24        of the net loss deduction under Section 207 of this Act
25        in the case of a trust or estate) computed as if the
26        taxpayer were a resident for the entire taxable year,

 

 

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1        provided that the fraction may not exceed 100%.
2        In the case of an individual, trust, or estate, for
3    taxable years beginning prior to January 1, 2015, and
4    ending after December 31, 2014, an amount equal to the sum
5    of (i) 5% of the taxpayer's net income for the period prior
6    to January 1, 2015, as calculated under Section 202.5, and
7    (ii) 3.75% of the taxpayer's net income for the period
8    after December 31, 2014, as calculated under Section 202.5.
9        (5.2) (Blank). In the case of an individual, trust, or
10    estate, for taxable years beginning on or after January 1,
11    2015, and ending prior to January 1, 2025, an amount equal
12    to 3.75% of the taxpayer's net income for the taxable year.
13        (5.3) (Blank). In the case of an individual, trust, or
14    estate, for taxable years beginning prior to January 1,
15    2025, and ending after December 31, 2024, an amount equal
16    to the sum of (i) 3.75% of the taxpayer's net income for
17    the period prior to January 1, 2025, as calculated under
18    Section 202.5, and (ii) 3.25% of the taxpayer's net income
19    for the period after December 31, 2024, as calculated under
20    Section 202.5.
21        (5.4) (Blank). In the case of an individual, trust, or
22    estate, for taxable years beginning on or after January 1,
23    2025, an amount equal to 3.25% of the taxpayer's net income
24    for the taxable year.
25        (6) In the case of a corporation, for taxable years
26    ending prior to July 1, 1989, an amount equal to 4% of the

 

 

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

 

 

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1    following rates:
2            (i) on that portion of the corporation's net income
3        that does not exceed $12,500, 2.9%; plus
4            (ii) on that portion of the corporation's net
5        income exceeding $12,500, but not exceeding $180,000,
6        4.9%; plus
7            (iii) on that portion of the corporation's net
8        income exceeding $180,000, 6.9%.
9        The corporation's tax liability shall be determined by
10    applying the table in this paragraph (11) to the net income
11    of the corporation computed as if it were a resident, and
12    multiplying the result by a fraction equal to the
13    corporation's net income (before the allowance of the net
14    loss deduction under Section 207 of this Act) divided by
15    the net income (before the allowance of the net loss
16    deduction under Section 207 of this Act) computed as if it
17    were a resident, provided that the fraction may not exceed
18    100%.
19        In the case of a corporation, for taxable years
20    beginning prior to January 1, 2015, and ending after
21    December 31, 2014, an amount equal to the sum of (i) 7% of
22    the taxpayer's net income for the period prior to January
23    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
24    of the taxpayer's net income for the period after December
25    31, 2014, as calculated under Section 202.5.
26        (12) (Blank). In the case of a corporation, for taxable

 

 

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

 

 

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1addition to all other occupation or privilege taxes imposed by
2this State or by any municipal corporation or political
3subdivision thereof.
4    (d) Additional Personal Property Tax Replacement Income
5Tax Rates. The personal property tax replacement income tax
6imposed by this subsection and subsection (c) of this Section
7in the case of a corporation, other than a Subchapter S
8corporation and except as adjusted by subsection (d-1), shall
9be an additional amount equal to 2.85% of such taxpayer's net
10income for the taxable year, except that beginning on January
111, 1981, and thereafter, the rate of 2.85% specified in this
12subsection shall be reduced to 2.5%, and in the case of a
13partnership, trust or a Subchapter S corporation shall be an
14additional amount equal to 1.5% of such taxpayer's net income
15for the taxable year.
16    (d-1) Rate reduction for certain foreign insurers. In the
17case of a foreign insurer, as defined by Section 35A-5 of the
18Illinois Insurance Code, whose state or country of domicile
19imposes on insurers domiciled in Illinois a retaliatory tax
20(excluding any insurer whose premiums from reinsurance assumed
21are 50% or more of its total insurance premiums as determined
22under paragraph (2) of subsection (b) of Section 304, except
23that for purposes of this determination premiums from
24reinsurance do not include premiums from inter-affiliate
25reinsurance arrangements), beginning with taxable years ending
26on or after December 31, 1999, the sum of the rates of tax

 

 

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1imposed by subsections (b) and (d) shall be reduced (but not
2increased) to the rate at which the total amount of tax imposed
3under this Act, net of all credits allowed under this Act,
4shall equal (i) the total amount of tax that would be imposed
5on the foreign insurer's net income allocable to Illinois for
6the taxable year by such foreign insurer's state or country of
7domicile if that net income were subject to all income taxes
8and taxes measured by net income imposed by such foreign
9insurer's state or country of domicile, net of all credits
10allowed or (ii) a rate of zero if no such tax is imposed on such
11income by the foreign insurer's state of domicile. For the
12purposes of this subsection (d-1), an inter-affiliate includes
13a mutual insurer under common management.
14        (1) For the purposes of subsection (d-1), in no event
15    shall the sum of the rates of tax imposed by subsections
16    (b) and (d) be reduced below the rate at which the sum of:
17            (A) the total amount of tax imposed on such foreign
18        insurer under this Act for a taxable year, net of all
19        credits allowed under this Act, plus
20            (B) the privilege tax imposed by Section 409 of the
21        Illinois Insurance Code, the fire insurance company
22        tax imposed by Section 12 of the Fire Investigation
23        Act, and the fire department taxes imposed under
24        Section 11-10-1 of the Illinois Municipal Code,
25    equals 1.25% for taxable years ending prior to December 31,
26    2003, or 1.75% for taxable years ending on or after

 

 

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1    December 31, 2003, of the net taxable premiums written for
2    the taxable year, as described by subsection (1) of Section
3    409 of the Illinois Insurance Code. This paragraph will in
4    no event increase the rates imposed under subsections (b)
5    and (d).
6        (2) Any reduction in the rates of tax imposed by this
7    subsection shall be applied first against the rates imposed
8    by subsection (b) and only after the tax imposed by
9    subsection (a) net of all credits allowed under this
10    Section other than the credit allowed under subsection (i)
11    has been reduced to zero, against the rates imposed by
12    subsection (d).
13    This subsection (d-1) is exempt from the provisions of
14Section 250.
15    (e) Investment credit. A taxpayer shall be allowed a credit
16against the Personal Property Tax Replacement Income Tax for
17investment in qualified property.
18        (1) A taxpayer shall be allowed a credit equal to .5%
19    of the basis of qualified property placed in service during
20    the taxable year, provided such property is placed in
21    service on or after July 1, 1984. There shall be allowed an
22    additional credit equal to .5% of the basis of qualified
23    property placed in service during the taxable year,
24    provided such property is placed in service on or after
25    July 1, 1986, and the taxpayer's base employment within
26    Illinois has increased by 1% or more over the preceding

 

 

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

 

 

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

 

 

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

 

 

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1    regarded as manufacturing, processing, fabrication, or
2    assembling which changes some existing material into new
3    shapes, new qualities, or new combinations. For purposes of
4    this subsection (e) the term "mining" shall have the same
5    meaning as the term "mining" in Section 613(c) of the
6    Internal Revenue Code. For purposes of this subsection (e),
7    the term "retailing" means the sale of tangible personal
8    property for use or consumption and not for resale, or
9    services rendered in conjunction with the sale of tangible
10    personal property for use or consumption and not for
11    resale. For purposes of this subsection (e), "tangible
12    personal property" has the same meaning as when that term
13    is used in the Retailers' Occupation Tax Act, and, for
14    taxable years ending after December 31, 2008, does not
15    include the generation, transmission, or distribution of
16    electricity.
17        (4) The basis of qualified property shall be the basis
18    used to compute the depreciation deduction for federal
19    income tax purposes.
20        (5) If the basis of the property for federal income tax
21    depreciation purposes is increased after it has been placed
22    in service in Illinois by the taxpayer, the amount of such
23    increase shall be deemed property placed in service on the
24    date of such increase in basis.
25        (6) The term "placed in service" shall have the same
26    meaning as under Section 46 of the Internal Revenue Code.

 

 

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

 

 

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1    against the tax imposed in subsections (c) and (d) of this
2    Section. If the partnership makes that election, those
3    credits shall be allocated among the partners in the
4    partnership in accordance with the rules set forth in
5    Section 704(b) of the Internal Revenue Code, and the rules
6    promulgated under that Section, and the allocated amount of
7    the credits shall be allowed to the partners for that
8    taxable year. The partnership shall make this election on
9    its Personal Property Tax Replacement Income Tax return for
10    that taxable year. The election to pass through the credits
11    shall be irrevocable.
12        For taxable years ending on or after December 31, 2000,
13    a partner that qualifies its partnership for a subtraction
14    under subparagraph (I) of paragraph (2) of subsection (d)
15    of Section 203 or a shareholder that qualifies a Subchapter
16    S corporation for a subtraction under subparagraph (S) of
17    paragraph (2) of subsection (b) of Section 203 shall be
18    allowed a credit under this subsection (e) equal to its
19    share of the credit earned under this subsection (e) during
20    the taxable year by the partnership or Subchapter S
21    corporation, determined in accordance with the
22    determination of income and distributive share of income
23    under Sections 702 and 704 and Subchapter S of the Internal
24    Revenue Code. This paragraph is exempt from the provisions
25    of Section 250.
26    (f) Investment credit; Enterprise Zone; River Edge

 

 

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1Redevelopment Zone.
2        (1) A taxpayer shall be allowed a credit against the
3    tax imposed by subsections (a) and (b) of this Section for
4    investment in qualified property which is placed in service
5    in an Enterprise Zone created pursuant to the Illinois
6    Enterprise Zone Act or, for property placed in service on
7    or after July 1, 2006, a River Edge Redevelopment Zone
8    established pursuant to the River Edge Redevelopment Zone
9    Act. For partners, shareholders of Subchapter S
10    corporations, and owners of limited liability companies,
11    if the liability company is treated as a partnership for
12    purposes of federal and State income taxation, there shall
13    be allowed a credit under this subsection (f) to be
14    determined in accordance with the determination of income
15    and distributive share of income under Sections 702 and 704
16    and Subchapter S of the Internal Revenue Code. The credit
17    shall be .5% of the basis for such property. The credit
18    shall be available only in the taxable year in which the
19    property is placed in service in the Enterprise Zone or
20    River Edge Redevelopment Zone and shall not be allowed to
21    the extent that it would reduce a taxpayer's liability for
22    the tax imposed by subsections (a) and (b) of this Section
23    to below zero. For tax years ending on or after December
24    31, 1985, the credit shall be allowed for the tax year in
25    which the property is placed in service, or, if the amount
26    of the credit exceeds the tax liability for that year,

 

 

09800SB0350sam002- 20 -LRB098 04642 HLH 58523 a

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

 

 

09800SB0350sam002- 21 -LRB098 04642 HLH 58523 a

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

 

 

09800SB0350sam002- 22 -LRB098 04642 HLH 58523 a

1        (7) There shall be allowed an additional credit equal
2    to 0.5% of the basis of qualified property placed in
3    service during the taxable year in a River Edge
4    Redevelopment Zone, provided such property is placed in
5    service on or after July 1, 2006, and the taxpayer's base
6    employment within Illinois has increased by 1% or more over
7    the preceding year as determined by the taxpayer's
8    employment records filed with the Illinois Department of
9    Employment Security. Taxpayers who are new to Illinois
10    shall be deemed to have met the 1% growth in base
11    employment for the first year in which they file employment
12    records with the Illinois Department of Employment
13    Security. If, in any year, the increase in base employment
14    within Illinois over the preceding year is less than 1%,
15    the additional credit shall be limited to that percentage
16    times a fraction, the numerator of which is 0.5% and the
17    denominator of which is 1%, but shall not exceed 0.5%.
18    (g) (Blank).
19    (h) Investment credit; High Impact Business.
20        (1) Subject to subsections (b) and (b-5) of Section 5.5
21    of the Illinois Enterprise Zone Act, a taxpayer shall be
22    allowed a credit against the tax imposed by subsections (a)
23    and (b) of this Section for investment in qualified
24    property which is placed in service by a Department of
25    Commerce and Economic Opportunity designated High Impact
26    Business. The credit shall be .5% of the basis for such

 

 

09800SB0350sam002- 23 -LRB098 04642 HLH 58523 a

1    property. The credit shall not be available (i) until the
2    minimum investments in qualified property set forth in
3    subdivision (a)(3)(A) of Section 5.5 of the Illinois
4    Enterprise Zone Act have been satisfied or (ii) until the
5    time authorized in subsection (b-5) of the Illinois
6    Enterprise Zone Act for entities designated as High Impact
7    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
8    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
9    Act, and shall not be allowed to the extent that it would
10    reduce a taxpayer's liability for the tax imposed by
11    subsections (a) and (b) of this Section to below zero. The
12    credit applicable to such investments shall be taken in the
13    taxable year in which such investments have been completed.
14    The credit for additional investments beyond the minimum
15    investment by a designated high impact business authorized
16    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
17    Enterprise Zone Act shall be available only in the taxable
18    year in which the property is placed in service and shall
19    not be allowed to the extent that it would reduce a
20    taxpayer's liability for the tax imposed by subsections (a)
21    and (b) of this Section to below zero. For tax years ending
22    on or after December 31, 1987, the credit shall be allowed
23    for the tax year in which the property is placed in
24    service, or, if the amount of the credit exceeds the tax
25    liability for that year, whether it exceeds the original
26    liability or the liability as later amended, such excess

 

 

09800SB0350sam002- 24 -LRB098 04642 HLH 58523 a

1    may be carried forward and applied to the tax liability of
2    the 5 taxable years following the excess credit year. The
3    credit shall be applied to the earliest year for which
4    there is a liability. If there is credit from more than one
5    tax year that is available to offset a liability, the
6    credit accruing first in time shall be applied first.
7        Changes made in this subdivision (h)(1) by Public Act
8    88-670 restore changes made by Public Act 85-1182 and
9    reflect existing law.
10        (2) The term qualified property means property which:
11            (A) is tangible, whether new or used, including
12        buildings and structural components of buildings;
13            (B) is depreciable pursuant to Section 167 of the
14        Internal Revenue Code, except that "3-year property"
15        as defined in Section 168(c)(2)(A) of that Code is not
16        eligible for the credit provided by this subsection
17        (h);
18            (C) is acquired by purchase as defined in Section
19        179(d) of the Internal Revenue Code; and
20            (D) is not eligible for the Enterprise Zone
21        Investment Credit provided by subsection (f) of this
22        Section.
23        (3) The basis of qualified property shall be the basis
24    used to compute the depreciation deduction for federal
25    income tax purposes.
26        (4) If the basis of the property for federal income tax

 

 

09800SB0350sam002- 25 -LRB098 04642 HLH 58523 a

1    depreciation purposes is increased after it has been placed
2    in service in a federally designated Foreign Trade Zone or
3    Sub-Zone located in Illinois by the taxpayer, the amount of
4    such increase shall be deemed property placed in service on
5    the date of such increase in basis.
6        (5) The term "placed in service" shall have the same
7    meaning as under Section 46 of the Internal Revenue Code.
8        (6) If during any taxable year ending on or before
9    December 31, 1996, any property ceases to be qualified
10    property in the hands of the taxpayer within 48 months
11    after being placed in service, or the situs of any
12    qualified property is moved outside Illinois within 48
13    months after being placed in service, the tax imposed under
14    subsections (a) and (b) of this Section for such taxable
15    year shall be increased. Such increase shall be determined
16    by (i) recomputing the investment credit which would have
17    been allowed for the year in which credit for such property
18    was originally allowed by eliminating such property from
19    such computation, and (ii) subtracting such recomputed
20    credit from the amount of credit previously allowed. For
21    the purposes of this paragraph (6), a reduction of the
22    basis of qualified property resulting from a
23    redetermination of the purchase price shall be deemed a
24    disposition of qualified property to the extent of such
25    reduction.
26        (7) Beginning with tax years ending after December 31,

 

 

09800SB0350sam002- 26 -LRB098 04642 HLH 58523 a

1    1996, if a taxpayer qualifies for the credit under this
2    subsection (h) and thereby is granted a tax abatement and
3    the taxpayer relocates its entire facility in violation of
4    the explicit terms and length of the contract under Section
5    18-183 of the Property Tax Code, the tax imposed under
6    subsections (a) and (b) of this Section shall be increased
7    for the taxable year in which the taxpayer relocated its
8    facility by an amount equal to the amount of credit
9    received by the taxpayer under this subsection (h).
10    (i) Credit for Personal Property Tax Replacement Income
11Tax. For tax years ending prior to December 31, 2003, a credit
12shall be allowed against the tax imposed by subsections (a) and
13(b) of this Section for the tax imposed by subsections (c) and
14(d) of this Section. This credit shall be computed by
15multiplying the tax imposed by subsections (c) and (d) of this
16Section by a fraction, the numerator of which is base income
17allocable to Illinois and the denominator of which is Illinois
18base income, and further multiplying the product by the tax
19rate imposed by subsections (a) and (b) of this Section.
20    Any credit earned on or after December 31, 1986 under this
21subsection which is unused in the year the credit is computed
22because it exceeds the tax liability imposed by subsections (a)
23and (b) for that year (whether it exceeds the original
24liability or the liability as later amended) may be carried
25forward and applied to the tax liability imposed by subsections
26(a) and (b) of the 5 taxable years following the excess credit

 

 

09800SB0350sam002- 27 -LRB098 04642 HLH 58523 a

1year, provided that no credit may be carried forward to any
2year ending on or after December 31, 2003. This credit shall be
3applied first to the earliest year for which there is a
4liability. If there is a credit under this subsection from more
5than one tax year that is available to offset a liability the
6earliest credit arising under this subsection shall be applied
7first.
8    If, during any taxable year ending on or after December 31,
91986, the tax imposed by subsections (c) and (d) of this
10Section for which a taxpayer has claimed a credit under this
11subsection (i) is reduced, the amount of credit for such tax
12shall also be reduced. Such reduction shall be determined by
13recomputing the credit to take into account the reduced tax
14imposed by subsections (c) and (d). If any portion of the
15reduced amount of credit has been carried to a different
16taxable year, an amended return shall be filed for such taxable
17year to reduce the amount of credit claimed.
18    (j) Training expense credit. Beginning with tax years
19ending on or after December 31, 1986 and prior to December 31,
202003, a taxpayer shall be allowed a credit against the tax
21imposed by subsections (a) and (b) under this Section for all
22amounts paid or accrued, on behalf of all persons employed by
23the taxpayer in Illinois or Illinois residents employed outside
24of Illinois by a taxpayer, for educational or vocational
25training in semi-technical or technical fields or semi-skilled
26or skilled fields, which were deducted from gross income in the

 

 

09800SB0350sam002- 28 -LRB098 04642 HLH 58523 a

1computation of taxable income. The credit against the tax
2imposed by subsections (a) and (b) shall be 1.6% of such
3training expenses. For partners, shareholders of subchapter S
4corporations, and owners of limited liability companies, if the
5liability company is treated as a partnership for purposes of
6federal and State income taxation, there shall be allowed a
7credit under this subsection (j) to be determined in accordance
8with the determination of income and distributive share of
9income under Sections 702 and 704 and subchapter S of the
10Internal Revenue Code.
11    Any credit allowed under this subsection which is unused in
12the year the credit is earned may be carried forward to each of
13the 5 taxable years following the year for which the credit is
14first computed until it is used. This credit shall be applied
15first to the earliest year for which there is a liability. If
16there is a credit under this subsection from more than one tax
17year that is available to offset a liability the earliest
18credit arising under this subsection shall be applied first. No
19carryforward credit may be claimed in any tax year ending on or
20after December 31, 2003.
21    (k) Research and development credit. For tax years ending
22after July 1, 1990 and prior to December 31, 2003, and
23beginning again for tax years ending on or after December 31,
242004, and ending prior to January 1, 2016, a taxpayer shall be
25allowed a credit against the tax imposed by subsections (a) and
26(b) of this Section for increasing research activities in this

 

 

09800SB0350sam002- 29 -LRB098 04642 HLH 58523 a

1State. The credit allowed against the tax imposed by
2subsections (a) and (b) shall be equal to 6 1/2% of the
3qualifying expenditures for increasing research activities in
4this State. For partners, shareholders of subchapter S
5corporations, and owners of limited liability companies, if the
6liability company is treated as a partnership for purposes of
7federal and State income taxation, there shall be allowed a
8credit under this subsection to be determined in accordance
9with the determination of income and distributive share of
10income under Sections 702 and 704 and subchapter S of the
11Internal Revenue Code.
12    For purposes of this subsection, "qualifying expenditures"
13means the qualifying expenditures as defined for the federal
14credit for increasing research activities which would be
15allowable under Section 41 of the Internal Revenue Code and
16which are conducted in this State, "qualifying expenditures for
17increasing research activities in this State" means the excess
18of qualifying expenditures for the taxable year in which
19incurred over qualifying expenditures for the base period,
20"qualifying expenditures for the base period" means the average
21of the qualifying expenditures for each year in the base
22period, and "base period" means the 3 taxable years immediately
23preceding the taxable year for which the determination is being
24made.
25    Any credit in excess of the tax liability for the taxable
26year may be carried forward. A taxpayer may elect to have the

 

 

09800SB0350sam002- 30 -LRB098 04642 HLH 58523 a

1unused credit shown on its final completed return carried over
2as a credit against the tax liability for the following 5
3taxable years or until it has been fully used, whichever occurs
4first; provided that no credit earned in a tax year ending
5prior to December 31, 2003 may be carried forward to any year
6ending on or after December 31, 2003.
7    If an unused credit is carried forward to a given year from
82 or more earlier years, that credit arising in the earliest
9year will be applied first against the tax liability for the
10given year. If a tax liability for the given year still
11remains, the credit from the next earliest year will then be
12applied, and so on, until all credits have been used or no tax
13liability for the given year remains. Any remaining unused
14credit or credits then will be carried forward to the next
15following year in which a tax liability is incurred, except
16that no credit can be carried forward to a year which is more
17than 5 years after the year in which the expense for which the
18credit is given was incurred.
19    No inference shall be drawn from this amendatory Act of the
2091st General Assembly in construing this Section for taxable
21years beginning before January 1, 1999.
22    (l) Environmental Remediation Tax Credit.
23        (i) For tax years ending after December 31, 1997 and on
24    or before December 31, 2001, a taxpayer shall be allowed a
25    credit against the tax imposed by subsections (a) and (b)
26    of this Section for certain amounts paid for unreimbursed

 

 

09800SB0350sam002- 31 -LRB098 04642 HLH 58523 a

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

 

 

09800SB0350sam002- 32 -LRB098 04642 HLH 58523 a

1    deduction for losses by paragraphs (b), (c), and (f)(1) of
2    Section 267 of the Internal Revenue Code by virtue of being
3    a related taxpayer, as well as any of its partners. The
4    credit allowed against the tax imposed by subsections (a)
5    and (b) shall be equal to 25% of the unreimbursed eligible
6    remediation costs in excess of $100,000 per site, except
7    that the $100,000 threshold shall not apply to any site
8    contained in an enterprise zone as determined by the
9    Department of Commerce and Community Affairs (now
10    Department of Commerce and Economic Opportunity). The
11    total credit allowed shall not exceed $40,000 per year with
12    a maximum total of $150,000 per site. For partners and
13    shareholders of subchapter S corporations, there shall be
14    allowed a credit under this subsection to be determined in
15    accordance with the determination of income and
16    distributive share of income under Sections 702 and 704 and
17    subchapter S of the Internal Revenue Code.
18        (ii) A credit allowed under this subsection that is
19    unused in the year the credit is earned may be carried
20    forward to each of the 5 taxable years following the year
21    for which the credit is first earned until it is used. The
22    term "unused credit" does not include any amounts of
23    unreimbursed eligible remediation costs in excess of the
24    maximum credit per site authorized under paragraph (i).
25    This credit shall be applied first to the earliest year for
26    which there is a liability. If there is a credit under this

 

 

09800SB0350sam002- 33 -LRB098 04642 HLH 58523 a

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

 

 

09800SB0350sam002- 34 -LRB098 04642 HLH 58523 a

1credit under this subsection claimed by a family that is the
2custodian of qualifying pupils exceed $500. In no event shall a
3credit under this subsection reduce the taxpayer's liability
4under this Act to less than zero. This subsection is exempt
5from the provisions of Section 250 of this Act.
6    For purposes of this subsection:
7    "Qualifying pupils" means individuals who (i) are
8residents of the State of Illinois, (ii) are under the age of
921 at the close of the school year for which a credit is
10sought, and (iii) during the school year for which a credit is
11sought were full-time pupils enrolled in a kindergarten through
12twelfth grade education program at any school, as defined in
13this subsection.
14    "Qualified education expense" means the amount incurred on
15behalf of a qualifying pupil in excess of $250 for tuition,
16book fees, and lab fees at the school in which the pupil is
17enrolled during the regular school year.
18    "School" means any public or nonpublic elementary or
19secondary school in Illinois that is in compliance with Title
20VI of the Civil Rights Act of 1964 and attendance at which
21satisfies the requirements of Section 26-1 of the School Code,
22except that nothing shall be construed to require a child to
23attend any particular public or nonpublic school to qualify for
24the credit under this Section.
25    "Custodian" means, with respect to qualifying pupils, an
26Illinois resident who is a parent, the parents, a legal

 

 

09800SB0350sam002- 35 -LRB098 04642 HLH 58523 a

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

 

 

09800SB0350sam002- 36 -LRB098 04642 HLH 58523 a

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

 

 

09800SB0350sam002- 37 -LRB098 04642 HLH 58523 a

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

 

 

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

 

 

09800SB0350sam002- 39 -LRB098 04642 HLH 58523 a

1    transferred in a transaction to lineal descendants in which
2    no gain or loss is recognized or as a result of a
3    transaction in accordance with Section 351 of the Internal
4    Revenue Code in which no gain or loss is recognized.
5(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
6eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; revised
78-9-13.)
 
8    (35 ILCS 5/502)  (from Ch. 120, par. 5-502)
9    Sec. 502. Returns and notices.
10    (a) In general. A return with respect to the taxes imposed
11by this Act shall be made by every person for any taxable year:
12        (1) for which such person is liable for a tax imposed
13    by this Act, or
14        (2) in the case of a resident or in the case of a
15    corporation which is qualified to do business in this
16    State, for which such person is required to make a federal
17    income tax return, regardless of whether such person is
18    liable for a tax imposed by this Act. However, this
19    paragraph shall not require a resident to make a return if
20    such person has an Illinois base income of the basic amount
21    in Section 204(b) or less and is either claimed as a
22    dependent on another person's tax return under the Internal
23    Revenue Code, or is claimed as a dependent on another
24    person's tax return under this Act.
25    Notwithstanding the provisions of paragraph (1), a

 

 

09800SB0350sam002- 40 -LRB098 04642 HLH 58523 a

1nonresident (other than, for taxable years ending on or after
2December 31, 2011, a nonresident required to withhold tax under
3Section 709.5) whose Illinois income tax liability under
4subsections (a), (b), (c), and (d) of Section 201 of this Act
5is paid in full after taking into account the credits allowed
6under subsection (f) of this Section or allowed under Section
7709.5 of this Act shall not be required to file a return under
8this subsection (a).
9    (b) Fiduciaries and receivers.
10        (1) Decedents. If an individual is deceased, any return
11    or notice required of such individual under this Act shall
12    be made by his executor, administrator, or other person
13    charged with the property of such decedent.
14        (2) Individuals under a disability. If an individual is
15    unable to make a return or notice required under this Act,
16    the return or notice required of such individual shall be
17    made by his duly authorized agent, guardian, fiduciary or
18    other person charged with the care of the person or
19    property of such individual.
20        (3) Estates and trusts. Returns or notices required of
21    an estate or a trust shall be made by the fiduciary
22    thereof.
23        (4) Receivers, trustees and assignees for
24    corporations. In a case where a receiver, trustee in
25    bankruptcy, or assignee, by order of a court of competent
26    jurisdiction, by operation of law, or otherwise, has

 

 

09800SB0350sam002- 41 -LRB098 04642 HLH 58523 a

1    possession of or holds title to all or substantially all
2    the property or business of a corporation, whether or not
3    such property or business is being operated, such receiver,
4    trustee, or assignee shall make the returns and notices
5    required of such corporation in the same manner and form as
6    corporations are required to make such returns and notices.
7    (c) Joint returns by husband and wife.
8        (1) Except as provided in paragraph (3):
9            (A) if a husband and wife file a joint federal
10        income tax return for a taxable year ending before
11        December 31, 2009, or for a taxable year ending on or
12        after December 31, 2015, they shall file a joint return
13        under this Act for such taxable year and their
14        liabilities shall be joint and several, and any
15        overpayment for that taxable year may be withheld under
16        Section 909 of this Act or under Section 2505-275 of
17        the Department of Revenue Law of the Civil
18        Administrative Code of Illinois and applied against a
19        debt of either spouse without regard to the amount of
20        the overpayment attributable to the other spouse;
21            (B) if a husband and wife file a joint federal
22        income tax return for a taxable year ending on or after
23        December 31, 2009, and prior to December 31, 2015, they
24        may elect to file separate returns under this Act for
25        such taxable year. The election under this paragraph
26        must be made on or before the due date (including

 

 

09800SB0350sam002- 42 -LRB098 04642 HLH 58523 a

1        extensions) of the return and, once made, shall be
2        irrevocable. If no election is timely made under this
3        paragraph for a taxable year:
4                (i) the couple must file a joint return under
5            this Act for such taxable year,
6                (ii) their liabilities shall be joint and
7            several, and
8                (iii) any overpayment for that taxable year
9            may be withheld under Section 909 of this Act or
10            under Section 2505-275 of the Civil Administrative
11            Code of Illinois and applied against a debt of
12            either spouse without regard to the amount of the
13            overpayment attributable to the other spouse; and
14            (C) if the federal income tax liability of either
15        spouse is determined on a separate federal income tax
16        return, they shall file separate returns under this
17        Act.
18        (2) If neither spouse is required to file a federal
19    income tax return and either or both are required to file a
20    return under this Act, they may elect to file separate or
21    joint returns and pursuant to such election their
22    liabilities shall be separate or joint and several.
23        (3) For taxable years ending prior to December 31,
24    2015, if If either husband or wife is a resident and the
25    other is a nonresident, they shall file separate returns in
26    this State on such forms as may be required by the

 

 

09800SB0350sam002- 43 -LRB098 04642 HLH 58523 a

1    Department in which event their tax liabilities shall be
2    separate; but if they file a joint federal income tax
3    return for a taxable year, they may elect to determine
4    their joint net income and file a joint return for that
5    taxable year under the provisions of paragraph (1) of this
6    subsection as if both were residents and in such case,
7    their liabilities shall be joint and several.
8        (4) Innocent spouses.
9            (A) However, for tax liabilities arising and paid
10        prior to August 13, 1999, an innocent spouse shall be
11        relieved of liability for tax (including interest and
12        penalties) for any taxable year for which a joint
13        return has been made, upon submission of proof that the
14        Internal Revenue Service has made a determination
15        under Section 6013(e) of the Internal Revenue Code, for
16        the same taxable year, which determination relieved
17        the spouse from liability for federal income taxes. If
18        there is no federal income tax liability at issue for
19        the same taxable year, the Department shall rely on the
20        provisions of Section 6013(e) to determine whether the
21        person requesting innocent spouse abatement of tax,
22        penalty, and interest is entitled to that relief.
23            (B) For tax liabilities arising on and after August
24        13, 1999 or which arose prior to that date, but remain
25        unpaid as of that date, if an individual who filed a
26        joint return for any taxable year has made an election

 

 

09800SB0350sam002- 44 -LRB098 04642 HLH 58523 a

1        under this paragraph, the individual's liability for
2        any tax shown on the joint return shall not exceed the
3        individual's separate return amount and the
4        individual's liability for any deficiency assessed for
5        that taxable year shall not exceed the portion of the
6        deficiency properly allocable to the individual. For
7        purposes of this paragraph:
8                (i) An election properly made pursuant to
9            Section 6015 of the Internal Revenue Code shall
10            constitute an election under this paragraph,
11            provided that the election shall not be effective
12            until the individual has notified the Department
13            of the election in the form and manner prescribed
14            by the Department.
15                (ii) If no election has been made under Section
16            6015, the individual may make an election under
17            this paragraph in the form and manner prescribed by
18            the Department, provided that no election may be
19            made if the Department finds that assets were
20            transferred between individuals filing a joint
21            return as part of a scheme by such individuals to
22            avoid payment of Illinois income tax and the
23            election shall not eliminate the individual's
24            liability for any portion of a deficiency
25            attributable to an error on the return of which the
26            individual had actual knowledge as of the date of

 

 

09800SB0350sam002- 45 -LRB098 04642 HLH 58523 a

1            filing.
2                (iii) In determining the separate return
3            amount or portion of any deficiency attributable
4            to an individual, the Department shall follow the
5            provisions in subsections (c) and (d) of Section
6            6015 of the Internal Revenue Code.
7                (iv) In determining the validity of an
8            individual's election under subparagraph (ii) and
9            in determining an electing individual's separate
10            return amount or portion of any deficiency under
11            subparagraph (iii), any determination made by the
12            Secretary of the Treasury, by the United States Tax
13            Court on petition for review of a determination by
14            the Secretary of the Treasury, or on appeal from
15            the United States Tax Court under Section 6015 of
16            the Internal Revenue Code regarding criteria for
17            eligibility or under subsection (d) of Section
18            6015 of the Internal Revenue Code regarding the
19            allocation of any item of income, deduction,
20            payment, or credit between an individual making
21            the federal election and that individual's spouse
22            shall be conclusively presumed to be correct. With
23            respect to any item that is not the subject of a
24            determination by the Secretary of the Treasury or
25            the federal courts, in any proceeding involving
26            this subsection, the individual making the

 

 

09800SB0350sam002- 46 -LRB098 04642 HLH 58523 a

1            election shall have the burden of proof with
2            respect to any item except that the Department
3            shall have the burden of proof with respect to
4            items in subdivision (ii).
5                (v) Any election made by an individual under
6            this subsection shall apply to all years for which
7            that individual and the spouse named in the
8            election have filed a joint return.
9                (vi) After receiving a notice that the federal
10            election has been made or after receiving an
11            election under subdivision (ii), the Department
12            shall take no collection action against the
13            electing individual for any liability arising from
14            a joint return covered by the election until the
15            Department has notified the electing individual in
16            writing that the election is invalid or of the
17            portion of the liability the Department has
18            allocated to the electing individual. Within 60
19            days (150 days if the individual is outside the
20            United States) after the issuance of such
21            notification, the individual may file a written
22            protest of the denial of the election or of the
23            Department's determination of the liability
24            allocated to him or her and shall be granted a
25            hearing within the Department under the provisions
26            of Section 908. If a protest is filed, the

 

 

09800SB0350sam002- 47 -LRB098 04642 HLH 58523 a

1            Department shall take no collection action against
2            the electing individual until the decision
3            regarding the protest has become final under
4            subsection (d) of Section 908 or, if
5            administrative review of the Department's decision
6            is requested under Section 1201, until the
7            decision of the court becomes final.
8    (d) Partnerships. Every partnership having any base income
9allocable to this State in accordance with section 305(c) shall
10retain information concerning all items of income, gain, loss
11and deduction; the names and addresses of all of the partners,
12or names and addresses of members of a limited liability
13company, or other persons who would be entitled to share in the
14base income of the partnership if distributed; the amount of
15the distributive share of each; and such other pertinent
16information as the Department may by forms or regulations
17prescribe. The partnership shall make that information
18available to the Department when requested by the Department.
19    (e) For taxable years ending on or after December 31, 1985,
20and before December 31, 1993, taxpayers that are corporations
21(other than Subchapter S corporations) having the same taxable
22year and that are members of the same unitary business group
23may elect to be treated as one taxpayer for purposes of any
24original return, amended return which includes the same
25taxpayers of the unitary group which joined in the election to
26file the original return, extension, claim for refund,

 

 

09800SB0350sam002- 48 -LRB098 04642 HLH 58523 a

1assessment, collection and payment and determination of the
2group's tax liability under this Act. This subsection (e) does
3not permit the election to be made for some, but not all, of
4the purposes enumerated above. For taxable years ending on or
5after December 31, 1987, corporate members (other than
6Subchapter S corporations) of the same unitary business group
7making this subsection (e) election are not required to have
8the same taxable year.
9    For taxable years ending on or after December 31, 1993,
10taxpayers that are corporations (other than Subchapter S
11corporations) and that are members of the same unitary business
12group shall be treated as one taxpayer for purposes of any
13original return, amended return which includes the same
14taxpayers of the unitary group which joined in filing the
15original return, extension, claim for refund, assessment,
16collection and payment and determination of the group's tax
17liability under this Act.
18    (f) For taxable years ending prior to December 31, 2014,
19the Department may promulgate regulations to permit
20nonresident individual partners of the same partnership,
21nonresident Subchapter S corporation shareholders of the same
22Subchapter S corporation, and nonresident individuals
23transacting an insurance business in Illinois under a Lloyds
24plan of operation, and nonresident individual members of the
25same limited liability company that is treated as a partnership
26under Section 1501 (a)(16) of this Act, to file composite

 

 

09800SB0350sam002- 49 -LRB098 04642 HLH 58523 a

1individual income tax returns reflecting the composite income
2of such individuals allocable to Illinois and to make composite
3individual income tax payments. For taxable years ending prior
4to December 31, 2014, the Department may by regulation also
5permit such composite returns to include the income tax owed by
6Illinois residents attributable to their income from
7partnerships, Subchapter S corporations, insurance businesses
8organized under a Lloyds plan of operation, or limited
9liability companies that are treated as partnership under
10Section 1501(a)(16) of this Act, in which case such Illinois
11residents will be permitted to claim credits on their
12individual returns for their shares of the composite tax
13payments. This paragraph of subsection (f) applies to taxable
14years ending on or after December 31, 1987 and ending prior to
15December 31, 2014.
16    For taxable years ending on or after December 31, 1999, the
17Department may, by regulation, permit any persons transacting
18an insurance business organized under a Lloyds plan of
19operation to file composite returns reflecting the income of
20such persons allocable to Illinois and the tax rates applicable
21to such persons under Section 201 and to make composite tax
22payments and shall, by regulation, also provide that the income
23and apportionment factors attributable to the transaction of an
24insurance business organized under a Lloyds plan of operation
25by any person joining in the filing of a composite return
26shall, for purposes of allocating and apportioning income under

 

 

09800SB0350sam002- 50 -LRB098 04642 HLH 58523 a

1Article 3 of this Act and computing net income under Section
2202 of this Act, be excluded from any other income and
3apportionment factors of that person or of any unitary business
4group, as defined in subdivision (a)(27) of Section 1501, to
5which that person may belong.
6    For taxable years ending on or after December 31, 2008,
7every nonresident shall be allowed a credit against his or her
8liability under subsections (a) and (b) of Section 201 for any
9amount of tax reported on a composite return and paid on his or
10her behalf under this subsection (f). Residents (other than
11persons transacting an insurance business organized under a
12Lloyds plan of operation) may claim a credit for taxes reported
13on a composite return and paid on their behalf under this
14subsection (f) only as permitted by the Department by rule.
15    (f-5) For taxable years ending on or after December 31,
162008, the Department may adopt rules to provide that, when a
17partnership or Subchapter S corporation has made an error in
18determining the amount of any item of income, deduction,
19addition, subtraction, or credit required to be reported on its
20return that affects the liability imposed under this Act on a
21partner or shareholder, the partnership or Subchapter S
22corporation may report the changes in liabilities of its
23partners or shareholders and claim a refund of the resulting
24overpayments, or pay the resulting underpayments, on behalf of
25its partners and shareholders.
26    (g) The Department may adopt rules to authorize the

 

 

09800SB0350sam002- 51 -LRB098 04642 HLH 58523 a

1electronic filing of any return required to be filed under this
2Section.
3(Source: P.A. 97-507, eff. 8-23-11; 98-478, eff. 1-1-14.)
 
4    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
5    Sec. 901. Collection Authority.
6    (a) In general.
7    The Department shall collect the taxes imposed by this Act.
8The Department shall collect certified past due child support
9amounts under Section 2505-650 of the Department of Revenue Law
10(20 ILCS 2505/2505-650). Except as provided in subsections (c),
11(e), (f), and (g) of this Section, money collected pursuant to
12subsections (a) and (b) of Section 201 of this Act shall be
13paid into the General Revenue Fund in the State treasury; money
14collected pursuant to subsections (c) and (d) of Section 201 of
15this Act shall be paid into the Personal Property Tax
16Replacement Fund, a special fund in the State Treasury; and
17money collected under Section 2505-650 of the Department of
18Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
19Child Support Enforcement Trust Fund, a special fund outside
20the State Treasury, or to the State Disbursement Unit
21established under Section 10-26 of the Illinois Public Aid
22Code, as directed by the Department of Healthcare and Family
23Services.
24    (b) Local Government Distributive Fund.
25    Beginning August 1, 1969, and continuing through June 30,

 

 

09800SB0350sam002- 52 -LRB098 04642 HLH 58523 a

11994, the Treasurer shall transfer each month from the General
2Revenue Fund to a special fund in the State treasury, to be
3known as the "Local Government Distributive Fund", an amount
4equal to 1/12 of the net revenue realized from the tax imposed
5by subsections (a) and (b) of Section 201 of this Act during
6the preceding month. Beginning July 1, 1994, and continuing
7through June 30, 1995, the Treasurer shall transfer each month
8from the General Revenue Fund to the Local Government
9Distributive Fund an amount equal to 1/11 of the net revenue
10realized from the tax imposed by subsections (a) and (b) of
11Section 201 of this Act during the preceding month. Beginning
12July 1, 1995 and continuing through January 31, 2011, the
13Treasurer shall transfer each month from the General Revenue
14Fund to the Local Government Distributive Fund an amount equal
15to the net of (i) 1/10 of the net revenue realized from the tax
16imposed by subsections (a) and (b) of Section 201 of the
17Illinois Income Tax Act during the preceding month (ii) minus,
18beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
19and beginning July 1, 2004, zero. Beginning February 1, 2011,
20and continuing through January 31, 2016, January 31, 2015, the
21Treasurer shall transfer each month from the General Revenue
22Fund to the Local Government Distributive Fund an amount equal
23to the sum of (i) 6% (10% of the ratio of the 3% individual
24income tax rate prior to 2011 to the 5% individual income tax
25rate after 2010) of the net revenue realized from the tax
26imposed by subsections (a) and (b) of Section 201 of this Act

 

 

09800SB0350sam002- 53 -LRB098 04642 HLH 58523 a

1upon individuals, trusts, and estates during the preceding
2month and (ii) 6.86% (10% of the ratio of the 4.8% corporate
3income tax rate prior to 2011 to the 7% corporate income tax
4rate after 2010) of the net revenue realized from the tax
5imposed by subsections (a) and (b) of Section 201 of this Act
6upon corporations during the preceding month. Beginning
7February 1, 2016 February 1, 2015 and continuing through
8January 31, 2025, the Treasurer shall transfer each month from
9the General Revenue Fund to the Local Government Distributive
10Fund an amount equal 1/12 of the net revenue realized from the
11tax imposed by subsections (a) and (b) of Section 201 of the
12Illinois Income Tax Act during the preceding month. to the sum
13of (i) 8% (10% of the ratio of the 3% individual income tax
14rate prior to 2011 to the 3.75% individual income tax rate
15after 2014) of the net revenue realized from the tax imposed by
16subsections (a) and (b) of Section 201 of this Act upon
17individuals, trusts, and estates during the preceding month and
18(ii) 9.14% (10% of the ratio of the 4.8% corporate income tax
19rate prior to 2011 to the 5.25% corporate income tax rate after
202014) of the net revenue realized from the tax imposed by
21subsections (a) and (b) of Section 201 of this Act upon
22corporations during the preceding month. Beginning February 1,
232025, the Treasurer shall transfer each month from the General
24Revenue Fund to the Local Government Distributive Fund an
25amount equal to the sum of (i) 9.23% (10% of the ratio of the 3%
26individual income tax rate prior to 2011 to the 3.25%

 

 

09800SB0350sam002- 54 -LRB098 04642 HLH 58523 a

1individual income tax rate after 2024) of the net revenue
2realized from the tax imposed by subsections (a) and (b) of
3Section 201 of this Act upon individuals, trusts, and estates
4during the preceding month and (ii) 10% of the net revenue
5realized from the tax imposed by subsections (a) and (b) of
6Section 201 of this Act upon corporations during the preceding
7month. Net revenue realized for a month shall be defined as the
8revenue from the tax imposed by subsections (a) and (b) of
9Section 201 of this Act which is deposited in the General
10Revenue Fund, the Education Assistance Fund, the Income Tax
11Surcharge Local Government Distributive Fund, the Fund for the
12Advancement of Education, and the Commitment to Human Services
13Fund during the month minus the amount paid out of the General
14Revenue Fund in State warrants during that same month as
15refunds to taxpayers for overpayment of liability under the tax
16imposed by subsections (a) and (b) of Section 201 of this Act.
17    (c) Deposits Into Income Tax Refund Fund.
18        (1) Beginning on January 1, 1989 and thereafter, the
19    Department shall deposit a percentage of the amounts
20    collected pursuant to subsections (a), and (b)(1), (2), and
21    (3), (4), (5), and (5.1) of Section 201 of this Act into a
22    fund in the State treasury known as the Income Tax Refund
23    Fund. The Department shall deposit 6% of such amounts
24    during the period beginning January 1, 1989 and ending on
25    June 30, 1989. Beginning with State fiscal year 1990 and
26    for each fiscal year thereafter, the percentage deposited

 

 

09800SB0350sam002- 55 -LRB098 04642 HLH 58523 a

1    into the Income Tax Refund Fund during a fiscal year shall
2    be the Annual Percentage. For fiscal years 1999 through
3    2001, the Annual Percentage shall be 7.1%. For fiscal year
4    2003, the Annual Percentage shall be 8%. For fiscal year
5    2004, the Annual Percentage shall be 11.7%. Upon the
6    effective date of this amendatory Act of the 93rd General
7    Assembly, the Annual Percentage shall be 10% for fiscal
8    year 2005. For fiscal year 2006, the Annual Percentage
9    shall be 9.75%. For fiscal year 2007, the Annual Percentage
10    shall be 9.75%. For fiscal year 2008, the Annual Percentage
11    shall be 7.75%. For fiscal year 2009, the Annual Percentage
12    shall be 9.75%. For fiscal year 2010, the Annual Percentage
13    shall be 9.75%. For fiscal year 2011, the Annual Percentage
14    shall be 8.75%. For fiscal year 2012, the Annual Percentage
15    shall be 8.75%. For fiscal year 2013, the Annual Percentage
16    shall be 9.75%. For fiscal year 2014, the Annual Percentage
17    shall be 9.5%. For all other fiscal years, the Annual
18    Percentage shall be calculated as a fraction, the numerator
19    of which shall be the amount of refunds approved for
20    payment by the Department during the preceding fiscal year
21    as a result of overpayment of tax liability under
22    subsections (a), and (b)(1), (2), and (3), (4), (5), and
23    (5.1) of Section 201 of this Act plus the amount of such
24    refunds remaining approved but unpaid at the end of the
25    preceding fiscal year, minus the amounts transferred into
26    the Income Tax Refund Fund from the Tobacco Settlement

 

 

09800SB0350sam002- 56 -LRB098 04642 HLH 58523 a

1    Recovery Fund, and the denominator of which shall be the
2    amounts which will be collected pursuant to subsections
3    (a), and (b)(1), (2), and (3) , (4), (5), and (5.1) of
4    Section 201 of this Act during the preceding fiscal year;
5    except that in State fiscal year 2002, the Annual
6    Percentage shall in no event exceed 7.6%. The Director of
7    Revenue shall certify the Annual Percentage to the
8    Comptroller on the last business day of the fiscal year
9    immediately preceding the fiscal year for which it is to be
10    effective.
11        (2) Beginning on January 1, 1989 and thereafter, the
12    Department shall deposit a percentage of the amounts
13    collected pursuant to subsections (a), and (b)(6), (7), and
14    (8), (9), (10), and (11), (c) and (d) of Section 201 of
15    this Act into a fund in the State treasury known as the
16    Income Tax Refund Fund. The Department shall deposit 18% of
17    such amounts during the period beginning January 1, 1989
18    and ending on June 30, 1989. Beginning with State fiscal
19    year 1990 and for each fiscal year thereafter, the
20    percentage deposited into the Income Tax Refund Fund during
21    a fiscal year shall be the Annual Percentage. For fiscal
22    years 1999, 2000, and 2001, the Annual Percentage shall be
23    19%. For fiscal year 2003, the Annual Percentage shall be
24    27%. For fiscal year 2004, the Annual Percentage shall be
25    32%. Upon the effective date of this amendatory Act of the
26    93rd General Assembly, the Annual Percentage shall be 24%

 

 

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1    for fiscal year 2005. For fiscal year 2006, the Annual
2    Percentage shall be 20%. For fiscal year 2007, the Annual
3    Percentage shall be 17.5%. For fiscal year 2008, the Annual
4    Percentage shall be 15.5%. For fiscal year 2009, the Annual
5    Percentage shall be 17.5%. For fiscal year 2010, the Annual
6    Percentage shall be 17.5%. For fiscal year 2011, the Annual
7    Percentage shall be 17.5%. For fiscal year 2012, the Annual
8    Percentage shall be 17.5%. For fiscal year 2013, the Annual
9    Percentage shall be 14%. For fiscal year 2014, the Annual
10    Percentage shall be 13.4%. For all other fiscal years, the
11    Annual Percentage shall be calculated as a fraction, the
12    numerator of which shall be the amount of refunds approved
13    for payment by the Department during the preceding fiscal
14    year as a result of overpayment of tax liability under
15    subsections (a), and (b)(6), (7), and (8), (9), (10), and
16    (11), (c) and (d) of Section 201 of this Act plus the
17    amount of such refunds remaining approved but unpaid at the
18    end of the preceding fiscal year, and the denominator of
19    which shall be the amounts which will be collected pursuant
20    to subsections (a), and (b)(6), (7), and (8), (9), (10),
21    and (11), (c) and (d) of Section 201 of this Act during the
22    preceding fiscal year; except that in State fiscal year
23    2002, the Annual Percentage shall in no event exceed 23%.
24    The Director of Revenue shall certify the Annual Percentage
25    to the Comptroller on the last business day of the fiscal
26    year immediately preceding the fiscal year for which it is

 

 

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

 

 

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

 

 

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1    excluding for fiscal years 2000, 2001, and 2002 amounts
2    attributable to transfers under item (3) of subsection (c)
3    less refunds resulting from the earned income tax credit.
4        (5) This Act shall constitute an irrevocable and
5    continuing appropriation from the Income Tax Refund Fund
6    for the purpose of paying refunds upon the order of the
7    Director in accordance with the provisions of this Section.
8    (e) Deposits into the Education Assistance Fund and the
9Income Tax Surcharge Local Government Distributive Fund.
10    On July 1, 1991, and thereafter, of the amounts collected
11pursuant to subsections (a) and (b) of Section 201 of this Act,
12minus deposits into the Income Tax Refund Fund, the Department
13shall deposit 7.3% into the Education Assistance Fund in the
14State Treasury. Beginning July 1, 1991, and continuing through
15January 31, 1993, of the amounts collected pursuant to
16subsections (a) and (b) of Section 201 of the Illinois Income
17Tax Act, minus deposits into the Income Tax Refund Fund, the
18Department shall deposit 3.0% into the Income Tax Surcharge
19Local Government Distributive Fund in the State Treasury.
20Beginning February 1, 1993 and continuing through June 30,
211993, of the amounts collected pursuant to subsections (a) and
22(b) of Section 201 of the Illinois Income Tax Act, minus
23deposits into the Income Tax Refund Fund, the Department shall
24deposit 4.4% into the Income Tax Surcharge Local Government
25Distributive Fund in the State Treasury. Beginning July 1,
261993, and continuing through June 30, 1994, of the amounts

 

 

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

 

 

09800SB0350sam002- 62 -LRB098 04642 HLH 58523 a

1    1, 2025, 1/30; and
2        (2) beginning February 1, 2025, 1/26.
3    If the rate of tax imposed by subsection (a) and (b) of
4Section 201 is reduced pursuant to Section 201.5 of this Act,
5the Department shall not make the deposits required by this
6subsection (g) on or after the effective date of the reduction.
7(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
8eff. 6-19-13.)".