Illinois General Assembly - Full Text of HB3123
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Full Text of HB3123  102nd General Assembly

HB3123 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3123

 

Introduced 2/19/2021, by Rep. Delia C. Ramirez

 

SYNOPSIS AS INTRODUCED:
 
New Act
35 ILCS 5/232 new
215 ILCS 5/409  from Ch. 73, par. 1021
215 ILCS 5/444  from Ch. 73, par. 1056

    Creates the Build Illinois Homes Tax Credit Act. Provides that owners of qualified low-income housing developments are eligible for credits against (i) State income taxes and (ii) any privilege tax or retaliatory tax, penalty, fee, charge, or payment imposed under the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately.


LRB102 11490 HLH 16824 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3123LRB102 11490 HLH 16824 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4
Article 1. Build Illinois Homes Tax Credit Act

 
5    Section 1-1. Short title. This Act may be cited as the
6Build Illinois Homes Tax Credit Act. References in this
7Article to "this Act" mean this Article.
 
8    Section 1-5. Definitions. As used in this Act, unless the
9context clearly requires otherwise:
10    "Allocation" means an award of tax credits to the owner of
11a qualified development in any allocation round, to be claimed
12ratably annually over the credit period.
13    "Allocation round" means all allocations by the Authority
14of credits under this Act to qualified developments in any
15calendar year.
16    "Allocation schedule certification" means the
17certification issued by the owner of a qualified development
18or its designee pursuant to subsection (d) of Section 1-10 of
19this Act.
20    "Authority" means:
21        (1) the Illinois Housing Development Authority; or
22        (2) the City of Chicago Department of Housing.

 

 

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1    "Credit" means the credit allowed pursuant to this Act.
2    "Credit period" means the period of 10 taxable years
3beginning with the taxable year in which a qualified
4development is placed in service. If a qualified development
5consists of more than one building, the qualified development
6is deemed to be placed in service in the taxable year during
7which the last building of the qualified development is placed
8in service.
9    "Department" means the Department of Revenue.
10    "Federal tax credit" means the federal low-income housing
11tax credit provided by Section 42 of the federal Internal
12Revenue Code, including federal low-income housing tax credits
13issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4).
14    "Qualified allocation plan" means the qualified allocation
15plan adopted by the Authority pursuant to Section 42(m) of the
16federal Internal Revenue Code of 1986.
17    "Qualified basis" means the qualified basis of the
18qualified development as determined pursuant to Section 42 of
19the federal Internal Revenue Code of 1986.
20    "Qualified development" means a qualified low-income
21housing project, as that term is defined in Section 42 of the
22federal Internal Revenue Code of 1986, that is located in the
23State and is determined to be eligible for the federal tax
24credit set forth in Section 42 of the Internal Revenue Code,
25whether or not a federal tax credit is allocated with respect
26to that qualified development.

 

 

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1    "Qualified taxpayer" means an individual, person, firm,
2corporation, or other entity that owns an interest, direct or
3indirect, in a qualified development and is subject to any or
4all of the following: (i) the taxes imposed by the Illinois
5Income Tax Act; or (ii) any privilege tax or retaliatory tax,
6penalty, fee, charge or payment imposed by the Illinois
7Insurance Code.
8    "State credit eligibility statement" means a statement
9issued by the Authority under Section 1-7.
10    "State tax return" means the income tax return filed with
11the Department or the privilege and retaliatory tax return
12filed with the Department of Insurance, as applicable.
 
13    Section 1-7. State credit eligibility statements. A State
14credit eligibility statement shall be issued by the Authority
15with respect to each building within the qualified development
16following construction or rehabilitation of the qualified
17development certifying that each such building within that
18qualified development qualifies for the credit and specifying:
19        (1) the calendar year in which the last building of
20    the qualified development was placed in service;
21        (2) the amount of the credit allowed for each year of
22    the credit period;
23        (3) the maximum qualified basis of the qualified
24    development taken into account in determining such annual
25    credit amount; and

 

 

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1        (4) a unique identification number for each State
2    credit eligibility statement issued.
3    The State credit eligibility statement shall be issued by
4the Authority simultaneously with IRS Form 8609 if the
5qualified development was also allocated federal tax credits.
6    The State credit eligibility statement shall include a
7Section to be completed by the owner of the qualified
8development annually for each year of the credit period
9certifying that the qualified development was in conformance
10with all compliance requirements. That certification shall be
11filed with the project owner's State tax return annually of
12each year of the credit period.
 
13    Section 1-10. Credit for low-income housing developments.
14    (a) The Authority shall include the credit in its annual
15qualified allocation plan each year until expiration of this
16Act. Each allocation round shall be simultaneous with
17allocations of federal tax credits.
18    (b) For taxable years beginning on or after January 1,
192021, the Authority may allocate a credit to the owner of a
20qualified development in any allocation round in an amount
21determined by the Authority, subject to the following
22guidelines:
23        (1) the Authority must find that the credit is
24    necessary for the financial feasibility of the qualified
25    development;

 

 

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1        (2) the aggregate sum of credits allocated to
2    qualified developments in any allocation round shall not
3    exceed $35,000,000, plus the amount of unallocated
4    credits, if any, from the preceding allocation round, plus
5    the amount of any credit recaptured or otherwise returned
6    to the Authority since the previous allocation round;
7        (3) of the $35,000,000 annual allocation: (i) 75.5% of
8    the available credits in each allocation round shall be
9    allocated by the Illinois Housing Development Authority,
10    plus any credits the Illinois Housing Development
11    Authority did not allocate from the previous allocation
12    round, plus the amount of any credits recaptured or
13    otherwise returned to the Illinois Housing Development
14    Authority since the previous allocation round; and (ii)
15    24.5% of the available credits in each allocation round
16    shall be allocated by the City of Chicago Department of
17    Housing, plus any credits the City of Chicago Department
18    of Housing did not allocate from the previous allocation
19    round, plus the amount of any credits recaptured or
20    otherwise returned to the City of Chicago Department of
21    Housing since the previous allocation round; and
22        (4) unless otherwise provided in this Act, or unless
23    the context clearly requires otherwise, the Authority must
24    determine eligibility for credits and allocate credits in
25    accordance with the standards and requirements set forth
26    in Section 42 of the federal Internal Revenue Code of

 

 

HB3123- 6 -LRB102 11490 HLH 16824 b

1    1986.
2    (c) For tax years during the credit period, any qualified
3taxpayer is allowed a credit as provided in this Act against
4any or all of the following: (i) the taxes imposed by
5subsections (a) and (b) of Section 201 of the Illinois Income
6Tax Act; or (ii) any privilege tax or retaliatory tax,
7penalty, fee, charge, or payment imposed under the Illinois
8Insurance Code.
9    (d) If a taxpayer receiving an allocation of a credit is
10(i) a corporation that has an election in effect under
11Subchapter S of the federal Internal Revenue Code, (ii) a
12partnership, or (iii) a limited liability company, that is
13required to file a tax return, the credit provided under this
14Act may be claimed by the shareholders of the corporation, the
15partners of the partnership, or the members of the limited
16liability company in the same manner as those shareholders,
17partners, or members account for their proportionate shares of
18the income or losses of the corporation, partnership, or
19limited liability company, or as provided in the bylaws or
20other executed agreement of the corporation, partnership, or
21limited liability company. Credits granted to a partnership, a
22limited liability company taxed as a partnership, or other
23multiple owners of property shall be passed through to the
24partners, members, or owners respectively on a pro rata basis
25or pursuant to an executed agreement among the partners,
26members, or owners documenting any alternative distribution

 

 

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1method, regardless of whether any such person is deemed a
2partner for federal income tax purposes, as long as the
3partner, shareholder or member would be considered a partner,
4shareholder, or member for State law purposes in accordance
5with Chapter 805 of the Illinois Compiled Statutes, and
6whether or not those persons are allocated or allowed any
7portion of the federal tax credit with respect to the
8qualified development, or whether the allocation of the credit
9under the terms of the agreement has substantial economic
10effect, within the meaning of Section 704(b) of the Internal
11Revenue Code, relating to determination of distributive share.
12In the case of multiple tiers of pass-through entities, the
13credit may be so allocated through any number of pass-through
14entities on a pro rata basis or pursuant to an executed
15agreement among the partners, members, or owners documenting
16any alternative distribution method. Notwithstanding the
17foregoing, no credit shall be passed through an entity that is
18considered a disregarded entity for tax purposes. A qualified
19taxpayer may claim a credit so long as its direct or indirect
20interest in the qualified development is acquired prior to the
21filing of its tax return claiming the credit. On or before
22February 28th following each year of the credit period, the
23owner must submit an allocation schedule certification in an
24electronic format prescribed by the Department and the
25Department of Insurance to the Department and the Department
26of Insurance detailing the amount of credit allocated to each

 

 

HB3123- 8 -LRB102 11490 HLH 16824 b

1qualified taxpayer for the applicable year and whether each
2qualified taxpayer intends to apply the credit to income tax
3or insurance premium tax, or the owner must notify the
4Department and the Department of Insurance that it has
5assigned the duty of the allocation schedule certification to
6its designee who must provide such allocation schedule
7certification to the Department and the Department of
8Insurance by the deadline. Such allocation schedule
9certification may be amended in the event the State credit
10eligibility statement for a project is received after the
11deadline for filing the allocation schedule certification. Any
12such amendment shall be filed prior to any taxpayer attempting
13to claim tax credits associated with the applicable State
14credit eligibility statement. Each qualified taxpayer is
15allowed to claim its allocated amount of credit subject to any
16restrictions set forth in this Section.
17    (e) No credit may be allocated pursuant to this Act unless
18the qualified development is the subject of a recorded
19restrictive covenant requiring the development to be
20maintained and operated as a qualified development; this
21requirement for a recorded restrictive covenant may be
22satisfied by the agreement for an extended low-income housing
23commitment required for the federal tax credits as defined in
24Section 42(h)(6)(B) of the federal Internal Revenue Code of
251986.
26    (f) If, during a taxable year, there is a determination

 

 

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1that no recorded restrictive covenant meeting the requirements
2of subsection (e) was in effect as of the beginning of that
3year, such determination shall not apply to any period before
4that year and subsection (e) shall be applied without regard
5to that determination if the failure is corrected within one
6year from the date of the determination.
7    (g) The credit amount may be taken against the taxes
8imposed by the Illinois Income Tax Act for each taxable year of
9the credit period. The credit amount may be taken against the
10taxes, penalties, fees, charges, and payments imposed by the
11Illinois Insurance Code for each reporting period in the
12credit period. Any credit amount that exceeds the tax due for a
13taxable year may be carried forward as a tax credit against
14payments due for up to 5 taxable years following the tax year
15to which the credit relates and must be applied first to the
16earliest reporting periods possible. Credits that are not
17claimed may not be refunded to the qualified taxpayer.
18    (h) By January 15, 2022 and by January 15 of each year
19thereafter, the Authority shall provide to the Department and
20the Department of Insurance an electronic file containing all
21data related to all State credit eligibility statements issued
22during the preceding year in the manner and form as provided by
23the Department.
 
24    Section 1-15. Recapture. If, under Section 42 of the
25Internal Revenue Code of 1986, a portion of any federal tax

 

 

HB3123- 10 -LRB102 11490 HLH 16824 b

1credit claimed with respect to a qualified development is
2required to be recaptured during the first 10 years after a
3project is placed in service, then the Authority shall provide
4written notice, upon a form created by the Authority, to the
5Department and the Department of Insurance of the amount to be
6recaptured. The amount of credit subject to recapture shall be
7proportionately equal to the amount of the qualified
8development's federal tax credits which are subject to
9recapture. The Department and the Department of Insurance, as
10applicable, shall notify the qualified taxpayer that claimed
11the credit of the amount recaptured, and the qualified
12taxpayer subject to recapture shall increase the qualified
13taxpayer's tax by the amount of any credit wrongfully claimed
14in the tax year the qualified taxpayer is notified of the
15recapture.
 
16    Section 1-20. Filing requirements. An owner of a qualified
17development that has received an allocation and each qualified
18taxpayer claiming any portion of the credit must file with
19their State tax returns a copy of the State credit eligibility
20statement issued by the Authority for that qualified
21development. A qualified taxpayer receiving an allocation of
22credit through a pass-through entity shall attach to its State
23tax return a copy of the Schedule K-1-P or other written
24statement from the pass-through entity stating the portion of
25the annual credit shown on the State credit eligibility

 

 

HB3123- 11 -LRB102 11490 HLH 16824 b

1statement that is allocated to that partner, member or
2shareholder for that taxable year. In addition, the owner of a
3qualified development or its designee shall file a copy of the
4allocation schedule certification prior to any tax return
5being filed claiming a State credit for such qualified
6development.
 
7    Section 1-25. Rules. The Illinois Housing Development
8Authority, the Department, and the Department of Insurance, in
9consultation with each other, shall adopt such rules as are
10necessary to carry out their respective responsibilities under
11this Act.
 
12    Section 1-30. Compliance monitoring. The Authority, in
13consultation with the Department, shall monitor and oversee
14compliance with the provisions of this Act and shall report
15specific occurrences of noncompliance to the Department and
16the Department of Insurance.
 
17    Section 1-35. Report to the General Assembly.
18    (a) The Illinois Housing Development Authority and the
19Chicago Department of Housing must, by December 31 of each
20allocation year, provide a written report to the General
21Assembly and must publish that report on their websites.
22    (b) The report shall:
23        (1) set forth the number of qualified developments

 

 

HB3123- 12 -LRB102 11490 HLH 16824 b

1    that have been allocated tax credits under this Act during
2    the allocation year and the total number of units
3    supported by each qualified development;
4        (2) describe each qualified development that has been
5    allocated tax credits under this Act including, without
6    limitation, the geographic location of the qualified
7    development, the household type and any specific
8    demographic information available about residents intended
9    to be served by the qualified development, the income
10    levels intended to be served by the qualified development,
11    and the rents or set-asides authorized for each qualified
12    development;
13        (3) provide housing market and demographic information
14    that demonstrates how the qualified developments supported
15    by the tax credits are addressing the need for affordable
16    housing within the communities they are intended to serve
17    as well as information about any remaining disparities in
18    the affordability of housing within those communities; and
19        (4) provide information on the percentage of qualified
20    developments allocated credits that received incentive
21    scoring points in the qualified allocation plan as a
22    result of the general contractor, property manager,
23    architect, or sponsor being certified under the Business
24    Enterprise Program for Minorities, Females, and Persons
25    with a Disability.
 

 

 

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1    Section 1-40. Exempt from automatic sunset. The credit
2under this Act is exempt from the provisions of Section 250 of
3the Illinois Income Tax Act.
 
4
Article 90. Amendatory Provisions

 
5    Section 90-10. The Illinois Income Tax Act is amended by
6adding Section 232 as follows:
 
7    (35 ILCS 5/232 new)
8    Sec. 232. Build Illinois Homes Tax Credit Act.
9    (a) For taxable years beginning on or after January 1,
102022, any eligible taxpayer with respect to a credit awarded
11in accordance with the Build Illinois Homes Tax Credit Act
12that is named on the allocation schedule certification for a
13particular tax year is entitled to a credit against the taxes
14imposed by subsections (a) and (b) of Section 201 as provided
15in the Build Illinois Homes Tax Credit Act.
16    (b) The taxpayer shall attach a copy of the allocation
17schedule certification and the State credit eligibility
18certificate issued under the Build Illinois Homes Tax Credit
19Act to the tax return on which the credits are to be claimed.
20    (c) If, during any taxable year, a taxpayer is notified of
21a recapture of a credit previously claimed on a State income
22tax return in accordance with the Build Illinois Homes Tax
23Credit Act, the tax imposed under subsections (a) and (b) of

 

 

HB3123- 14 -LRB102 11490 HLH 16824 b

1Section 201 for that taxpayer for that taxable year shall be
2increased. The amount of the increase shall be determined by
3(i) recomputing the Build Illinois Homes Tax Credit that would
4have been allowed for the year in which the credit was
5originally allowed by eliminating the recaptured amount from
6such computation, and (ii) subtracting that recomputed credit
7from the amount of credit previously allowed. No Build
8Illinois Homes tax Credit shall be allowed with respect to any
9credit subject to a recapture notice for any taxable year
10ending after the issuance of a recapture notice.
11    (d) This Section is exempt from the provisions of Section
12250.
 
13    Section 90-25. The Illinois Insurance Code is amended by
14changing Sections 409 and 444 as follows:
 
15    (215 ILCS 5/409)  (from Ch. 73, par. 1021)
16    Sec. 409. Annual privilege tax payable by companies.
17    (1) As of January 1, 1999 for all health maintenance
18organization premiums written; as of July 1, 1998 for all
19premiums written as accident and health business, voluntary
20health service plan business, dental service plan business, or
21limited health service organization business; and as of
22January 1, 1998 for all other types of insurance premiums
23written, every company doing any form of insurance business in
24this State, including, but not limited to, every risk

 

 

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1retention group, and excluding all fraternal benefit
2societies, all farm mutual companies, all religious charitable
3risk pooling trusts, and excluding all statutory residual
4market and special purpose entities in which companies are
5statutorily required to participate, whether incorporated or
6otherwise, shall pay, for the privilege of doing business in
7this State, to the Director for the State treasury a State tax
8equal to 0.5% of the net taxable premium written, together
9with any amounts due under Section 444 of this Code, except
10that the tax to be paid on any premium derived from any
11accident and health insurance or on any insurance business
12written by any company operating as a health maintenance
13organization, voluntary health service plan, dental service
14plan, or limited health service organization shall be equal to
150.4% of such net taxable premium written, together with any
16amounts due under Section 444. Upon the failure of any company
17to pay any such tax due, the Director may, by order, revoke or
18suspend the company's certificate of authority after giving 20
19days written notice to the company, or commence proceedings
20for the suspension of business in this State under the
21procedures set forth by Section 401.1 of this Code. The gross
22taxable premium written shall be the gross amount of premiums
23received on direct business during the calendar year on
24contracts covering risks in this State, except premiums on
25annuities, premiums on which State premium taxes are
26prohibited by federal law, premiums paid by the State for

 

 

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1health care coverage for Medicaid eligible insureds as
2described in Section 5-2 of the Illinois Public Aid Code,
3premiums paid for health care services included as an element
4of tuition charges at any university or college owned and
5operated by the State of Illinois, premiums on group insurance
6contracts under the State Employees Group Insurance Act of
71971, and except premiums for deferred compensation plans for
8employees of the State, units of local government, or school
9districts. The net taxable premium shall be the gross taxable
10premium written reduced only by the following:
11        (a) the amount of premiums returned thereon which
12    shall be limited to premiums returned during the same
13    preceding calendar year and shall not include the return
14    of cash surrender values or death benefits on life
15    policies including annuities;
16        (b) dividends on such direct business that have been
17    paid in cash, applied in reduction of premiums or left to
18    accumulate to the credit of policyholders or annuitants.
19    In the case of life insurance, no deduction shall be made
20    for the payment of deferred dividends paid in cash to
21    policyholders on maturing policies; dividends left to
22    accumulate to the credit of policyholders or annuitants
23    shall be included as gross taxable premium written when
24    such dividend accumulations are applied to purchase
25    paid-up insurance or to shorten the endowment or premium
26    paying period.

 

 

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1    (2) The annual privilege tax payment due from a company
2under subsection (4) of this Section may be reduced by: (a) the
3excess amount, if any, by which the aggregate income taxes
4paid by the company, on a cash basis, for the preceding
5calendar year under Sections 601 and 803 of the Illinois
6Income Tax Act exceed 1.5% of the company's net taxable
7premium written for that prior calendar year, as determined
8under subsection (1) of this Section; and (b) the amount of any
9fire department taxes paid by the company during the preceding
10calendar year under Section 11-10-1 of the Illinois Municipal
11Code. Any deductible amount or offset allowed under items (a)
12and (b) of this subsection for any calendar year will not be
13allowed as a deduction or offset against the company's
14privilege tax liability for any other taxing period or
15calendar year.
16    (3) If a company survives or was formed by a merger,
17consolidation, reorganization, or reincorporation, the
18premiums received and amounts returned or paid by all
19companies party to the merger, consolidation, reorganization,
20or reincorporation shall, for purposes of determining the
21amount of the tax imposed by this Section, be regarded as
22received, returned, or paid by the surviving or new company.
23    (4)(a) All companies subject to the provisions of this
24Section shall make an annual return for the preceding calendar
25year on or before March 15 setting forth such information on
26such forms as the Director may reasonably require. Payments of

 

 

HB3123- 18 -LRB102 11490 HLH 16824 b

1quarterly installments of the taxpayer's total estimated tax
2for the current calendar year shall be due on or before April
315, June 15, September 15, and December 15 of such year, except
4that all companies transacting insurance in this State whose
5annual tax for the immediately preceding calendar year was
6less than $5,000 shall make only an annual return. Failure of a
7company to make the annual payment, or to make the quarterly
8payments, if required, of at least 25% of either (i) the total
9tax paid during the previous calendar year or (ii) 80% of the
10actual tax for the current calendar year shall subject it to
11the penalty provisions set forth in Section 412 of this Code.
12    (b) Notwithstanding the foregoing provisions, no annual
13return shall be required or made on March 15, 1998, under this
14subsection. For the calendar year 1998:
15        (i) each health maintenance organization shall have no
16    estimated tax installments;
17        (ii) all companies subject to the tax as of July 1,
18    1998 as set forth in subsection (1) shall have estimated
19    tax installments due on September 15 and December 15 of
20    1998 which installments shall each amount to no less than
21    one-half of 80% of the actual tax on its net taxable
22    premium written during the period July 1, 1998, through
23    December 31, 1998; and
24        (iii) all other companies shall have estimated tax
25    installments due on June 15, September 15, and December 15
26    of 1998 which installments shall each amount to no less

 

 

HB3123- 19 -LRB102 11490 HLH 16824 b

1    than one-third of 80% of the actual tax on its net taxable
2    premium written during the calendar year 1998.
3    In the year 1999 and thereafter all companies shall make
4annual and quarterly installments of their estimated tax as
5provided by paragraph (a) of this subsection.
6    (5) In addition to the authority specifically granted
7under Article XXV of this Code, the Director shall have such
8authority to adopt rules and establish forms as may be
9reasonably necessary for purposes of determining the
10allocation of Illinois corporate income taxes paid under
11subsections (a) through (d) of Section 201 of the Illinois
12Income Tax Act amongst members of a business group that files
13an Illinois corporate income tax return on a unitary basis,
14for purposes of regulating the amendment of tax returns, for
15purposes of defining terms, and for purposes of enforcing the
16provisions of Article XXV of this Code. The Director shall
17also have authority to defer, waive, or abate the tax imposed
18by this Section if in his opinion the company's solvency and
19ability to meet its insured obligations would be immediately
20threatened by payment of the tax due.
21    (6) This Section is subject to the provisions of Section
2210 of the New Markets Development Program Act.
23    (7) This Section is subject to the provisions of the Build
24Illinois Homes Tax Credit Act. For taxable years beginning on
25or after January 1, 2022, qualified taxpayers are entitled to
26claim credits against the taxes imposed by this Section as

 

 

HB3123- 20 -LRB102 11490 HLH 16824 b

1provided in the Build Illinois Homes Tax Credit Act. Companies
2claiming a credit under the Build Illinois Homes Tax Credit
3Act are not required to pay any additional tax as a result of
4claiming the credit. The credit may fully offset any amounts
5imposed under this Section.
6(Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)
 
7    (215 ILCS 5/444)  (from Ch. 73, par. 1056)
8    Sec. 444. Retaliation.
9    (1) Whenever the existing or future laws of any other
10state or country shall require of companies incorporated or
11organized under the laws of this State as a condition
12precedent to their doing business in such other state or
13country, compliance with laws, rules, regulations, and
14prohibitions more onerous or burdensome than the rules and
15regulations imposed by this State on foreign or alien
16companies, or shall require any deposit of securities or other
17obligations in such state or country, for the protection of
18policyholders or otherwise or require of such companies or
19agents thereof or brokers the payment of penalties, fees,
20charges, or taxes greater than the penalties, fees, charges,
21or taxes required in the aggregate for like purposes by this
22Code or any other law of this State, of foreign or alien
23companies, agents thereof or brokers, then such laws, rules,
24regulations, and prohibitions of said other state or country
25shall apply to companies incorporated or organized under the

 

 

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1laws of such state or country doing business in this State, and
2all such companies, agents thereof, or brokers doing business
3in this State, shall be required to make deposits, pay
4penalties, fees, charges, and taxes, in amounts equal to those
5required in the aggregate for like purposes of Illinois
6companies doing business in such state or country, agents
7thereof or brokers. Whenever any other state or country shall
8refuse to permit any insurance company incorporated or
9organized under the laws of this State to transact business
10according to its usual plan in such other state or country, the
11director may, if satisfied that such company of this State is
12solvent, properly managed, and can operate legally under the
13laws of such other state or country, forthwith suspend or
14cancel the license of every insurance company doing business
15in this State which is incorporated or organized under the
16laws of such other state or country to the extent that it
17insures in this State against any of the risks or hazards which
18are sought to be insured against by the company of this State
19in such other state or country.
20    (2) The provisions of this Section shall not apply to
21residual market or special purpose assessments or guaranty
22fund or guaranty association assessments, both under the laws
23of this State and under the laws of any other state or country,
24and any tax offset or credit for any such assessment shall, for
25purposes of this Section, be treated as a tax paid both under
26the laws of this State and under the laws of any other state or

 

 

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1country.
2    (3) The terms "penalties", "fees", "charges", and "taxes"
3in subsection (1) of this Section shall include: the
4penalties, fees, charges, and taxes collected on a cash basis
5under State law and referenced within Article XXV exclusive of
6any items referenced by subsection (2) of this Section, but
7including any tax offset allowed under Section 531.13 of this
8Code; the aggregate Illinois corporate income taxes paid under
9Sections 601 and 803 of the Illinois Income Tax Act during the
10calendar year for which the retaliatory tax calculation is
11being made, less the recapture of any Illinois corporate
12income tax cash refunds to the extent that the amount of tax
13refunded was reported as part of the Illinois basis in the
14calculation of the retaliatory tax for a prior tax year,
15provided that such recaptured refund shall not exceed the
16amount necessary for equivalence of the Illinois basis with
17the state of incorporation basis in such tax year, and after
18any tax offset allowed under Section 531.13 of this Code;
19income or personal property taxes imposed by other states or
20countries; penalties, fees, charges, and taxes of other states
21or countries imposed for purposes like those of the penalties,
22fees, charges, and taxes specified in Article XXV of this Code
23exclusive of any item referenced in subsection (2) of this
24Section; and any penalties, fees, charges, and taxes required
25as a franchise, privilege, or licensing tax for conducting the
26business of insurance whether calculated as a percentage of

 

 

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1income, gross receipts, premium, or otherwise.
2    (4) Nothing contained in this Section or Section 409 or
3Section 444.1 is intended to authorize or expand any power of
4local governmental units or municipalities to impose taxes,
5fees, or charges.
6    (5) This Section is subject to the provisions of Section
710 of the New Markets Development Program Act.
8    (6) This Section is subject to the provisions of the Build
9Illinois Homes Tax Credit Act. For taxable years beginning on
10or after January 1, 2022, qualified taxpayers are entitled to
11claim credits against the taxes imposed by this Section as
12provided in the Build Illinois Homes Tax Credit Act. Companies
13claiming a credit under the Build Illinois Homes Tax Credit
14Act are not required to pay any additional tax as a result of
15claiming the credit. The credit may fully offset any amounts
16imposed under this Section.
17(Source: P.A. 98-1169, eff. 1-9-15.)
 
18
Article 99. Effective Date

 
19    Section 99-99. Effective date. This Act takes effect upon
20becoming law.