Illinois General Assembly - Full Text of SB3233
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB3233  103rd General Assembly



State of Illinois
2023 and 2024


Introduced 2/6/2024, by Sen. Robert Peters


New Act
35 ILCS 5/241 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 the taxes imposed by the Illinois Income Tax Act or taxes, penalties, fees, charges, and payments imposed by the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately.

LRB103 38198 HLH 68331 b





SB3233LRB103 38198 HLH 68331 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Build
5Illinois Homes Tax Credit Act.
6    Section 5. Definitions. As used in this Act, unless the
7context clearly requires otherwise:
8    "Allocation schedule certification" means a certification
9issued by the owner of a qualified development, or by the
10owner's designee, under subsection (d) of Section 15 of this
11Act. The certification shall include the following:
12        (1) the building identification number for each
13    building included in the qualified development;
14        (2) the calendar year in which the last building of
15    the qualified development was placed in service;
16        (3) the amount of the credit allowed for each year of
17    the credit period;
18        (4) the amount of credit allocated to each qualified
19    taxpayer for the qualified development for the applicable
20    tax year; and
21        (5) confirmation of whether each qualified taxpayer
22    elects to apply the credit to income tax or insurance
23    premium tax.



SB3233- 2 -LRB103 38198 HLH 68331 b

1    "Authority" means:
2        (1) the Illinois Housing Development Authority; or
3        (2) the City of Chicago Department of Housing.
4    "Building identification number" means the number assigned
5to a building within the qualified development by an Authority
6when allocating the federal tax credit.
7    "Credit" means the credit allowed under this Act.
8    "Credit period" means a period of 6 taxable years
9beginning with the taxable year in which a qualified
10development is placed in service. No credit period may include
11a taxable year beginning prior to January 1, 2025. If a
12qualified development consists of more than one building, then
13the qualified development is deemed to be placed in service in
14the taxable year in which the last building of the qualified
15development is placed in service.
16    "Department" means the Department of Revenue.
17    "Federal tax credit" means the federal low-income housing
18tax credit provided by Section 42 of the federal Internal
19Revenue Code, including federal low-income housing tax credits
20issued under 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4).
21    "Qualified basis" means the qualified basis of the
22qualified development as determined under Section 42 of the
23federal Internal Revenue Code of 1986.
24    "Qualified development" means a qualified low-income
25housing project, as that term is defined in Section 42 of the
26federal Internal Revenue Code of 1986, that is located in the



SB3233- 3 -LRB103 38198 HLH 68331 b

1State and is determined to be eligible for the federal tax
2credit set forth in Section 42 of the Internal Revenue Code.
3    "Qualified taxpayer" means an individual, person, firm,
4corporation, or other entity that owns a direct or indirect
5interest in a qualified development and that is subject to the
6taxes imposed by subsections (a) and (b) of Section 201 of the
7Illinois Income Tax Act or any privilege tax or retaliatory
8tax, penalty, fee, charge, or payment imposed by the Illinois
9Insurance Code.
10    "Reservation letter" means a reservation letter issued by
11the Illinois Housing Development Authority or a reservation
12agreement issued by the City of Chicago Department of Housing.
13    "State credit eligibility statement" means a statement
14issued by an Authority under Section 10 or documents submitted
15in satisfaction of a statement as allowed under Section 10.
16    "State tax return" means the income tax return filed with
17the Department or the privilege and retaliatory tax return
18filed with the Department of Insurance, as applicable.
19    Section 10. State credit eligibility statements. Following
20construction or rehabilitation of the qualified development,
21the applicable Authority shall issue a State credit
22eligibility statement with respect to each building located in
23the qualified development certifying that the building
24qualifies for the credit under this Act and specifying:
25        (1) the calendar year in which the last building of



SB3233- 4 -LRB103 38198 HLH 68331 b

1    the qualified development was placed in service;
2        (2) the amount of the credit allowed for each year of
3    the credit period;
4        (3) the maximum qualified basis of the qualified
5    development taken into account in determining such annual
6    credit amount;
7        (4) a building identification number; and
8        (5) that the qualified development is eligible for and
9    has applied to receive a federal tax credit.
10    The State credit eligibility statement shall be issued by
11an Authority simultaneously with IRS Form 8609. An Authority
12may issue, and the Department and Department of Insurance may
13accept, an IRS Form 8609, including any additional statements
14attached to the IRS Form 8609, and the reservation letter
15issued by the Authority for the qualified development in
16satisfaction of both federal requirements and the requirements
17set forth in this Section.
18    The State credit eligibility statement shall include a
19section to be completed by the owner of the qualified
20development annually for each year of the credit period
21certifying that the qualified development conforms with all
22compliance requirements, including all federal compliance
23requirements for the federal tax credit. The State credit
24eligibility statement shall be filed with the project owner's
25State tax return annually for each year of the credit period.



SB3233- 5 -LRB103 38198 HLH 68331 b

1    Section 15. Credit for low-income housing developments.
2    (a) For taxable years beginning on or after January 1,
32025, an Authority may award a credit to the owner of a
4qualified development simultaneously with the federal tax
5credit in an amount determined by the Authority, subject to
6the following guidelines:
7        (1) the Authority must find that the credit is
8    necessary for the financial feasibility of the qualified
9    development;
10        (2) the aggregate amount of credits awarded to
11    qualified developments for each calendar year shall not
12    exceed $20,000,000, plus the amount of unallocated
13    credits, if any, from the preceding calendar year, plus
14    the amount of any credit recaptured or otherwise returned
15    to an Authority since the preceding calendar year;
16        (3) of the $20,000,000 annual allocation:
17            (A) 75.5% of the available credits for each
18        calendar year shall be awarded by the Illinois Housing
19        Development Authority, plus any credits the Illinois
20        Housing Development Authority did not award from prior
21        calendar years, plus the amount of any credits
22        recaptured or otherwise returned to the Illinois
23        Housing Development Authority from prior calendar
24        years; and
25            (B) 24.5% of the available credits in each
26        calendar year shall be awarded by the City of Chicago



SB3233- 6 -LRB103 38198 HLH 68331 b

1        Department of Housing, plus any credits the City of
2        Chicago Department of Housing did not award from prior
3        calendar years, plus the amount of any credits
4        recaptured or otherwise returned to the City of
5        Chicago Department of Housing since the prior calendar
6        year; and
7        (4) unless otherwise provided in this Act, or unless
8    the context clearly requires otherwise, an Authority must
9    determine eligibility for credits and award credits in
10    accordance with the standards and requirements set forth
11    in Section 42 of the federal Internal Revenue Code of 1986
12    and, to the extent possible, use the same forms that are
13    used in administering the credit under Section 42 of the
14    federal Internal Revenue Code of 1986.
15    (b) For tax years during the credit period, any qualified
16taxpayer is allowed a credit, as provided in this Act, against
17either of the following: (i) the taxes imposed by subsections
18(a) and (b) of Section 201 of the Illinois Income Tax Act; or
19(ii) any privilege tax or retaliatory tax, penalty, fee,
20charge, or payment imposed under the Illinois Insurance Code.
21    (c) A qualified taxpayer may claim a credit under this Act
22so long as the taxpayer's direct or indirect interest in the
23qualified development is acquired prior to the filing of its
24tax return claiming the credit. On or before March 31
25following each year of the credit period, the owner must
26submit to the Department, the Department of Insurance, and the



SB3233- 7 -LRB103 38198 HLH 68331 b

1applicable Authority an allocation schedule certification, in
2an electronic format prescribed by the Department, the
3Department of Insurance, and the Authority, respectively,
4detailing the amount of the credit allocated to the qualified
5taxpayer for the applicable year and stating whether the
6qualified taxpayer has elected to claim the credit against the
7taxpayer's State income tax or insurance privilege tax or
8retaliatory tax liability. The taxpayer may assign to a
9designee the duty of preparing and submitting the allocation
10schedule certification. In that case, the designee must
11provide the allocation schedule certification to the
12Department, the Department of Insurance, and the applicable
13Authority on or before the deadline for submission. The
14qualified taxpayer must notify the Department, the Department
15of Insurance, and the applicable Authority if it assigns that
16duty to its designee.
17    The allocation schedule certification submitted under this
18Section may be amended if the State credit eligibility
19statement for a project is received after the deadline for
20filing the allocation schedule certification. Any amendment to
21an allocation schedule certification shall be filed before the
22taxpayer attempts to claim tax credits associated with the
23applicable State credit eligibility statement. Each qualified
24taxpayer is allowed to claim its awarded amount of credit
25subject to any restrictions set forth in this Section. If the
26credit is to be taken against the income tax and the qualified



SB3233- 8 -LRB103 38198 HLH 68331 b

1taxpayer is a pass-through entity, then the provisions of
2Section 251 of the Illinois Income Tax Act apply.
3    (d) No credit may be awarded under this Act unless the
4qualified development is the subject of a recorded restrictive
5covenant requiring the development to be maintained and
6operated as a qualified development; this requirement for a
7recorded restrictive covenant may be satisfied by the
8agreement for an extended low-income housing commitment
9required for the federal tax credits as defined in Section
1042(h)(6)(B) of the federal Internal Revenue Code of 1986.
11    (e) If, during a taxable year, there is a determination
12that no recorded restrictive covenant meeting the requirements
13of subsection (d) was in effect as of the beginning of that
14year, the determination shall not apply to any period before
15that year and subsection (e) shall be applied without regard
16to that determination if the failure is corrected within one
17year after the date of the determination.
18    (f) The tax credit under this Act may not reduce the
19taxpayer's liability to less than zero. If the amount of the
20tax credit exceeds the tax liability for the year, the excess
21may be carried forward and applied to the tax liability of the
225 taxable years following the excess credit year. The credit
23must be applied to the earliest year for which there is a tax
24liability. If there are credits from more than one tax year
25that are available to offset a liability, then the earlier
26credit must be applied first. Credits that are initially



SB3233- 9 -LRB103 38198 HLH 68331 b

1claimed against taxes imposed by the Illinois Income Tax Act
2may be carried forward only against the taxpayer's future
3Illinois Income Tax liability. Credits that are initially
4claimed against taxes, penalties, fees, charges, and payments
5imposed by the Illinois Insurance Code may be carried forward
6only against taxes, penalties, fees, charges, and payments
7imposed by the Illinois Insurance Code. Credits that are not
8claimed or carried forward may not be refunded to the
9taxpayer. The qualified taxpayer is solely responsible for
10correctly filing tax returns, and an Authority is not
11responsible for monitoring the calculation of taxes under this
13    (g) By March 31, 2025 and by March 31 of each year
14thereafter, each Authority shall provide to the Department and
15the Department of Insurance an electronic file containing all
16data related to all State credit eligibility statements issued
17during the preceding year in the manner and form as provided by
18each respective Department.
19    (h) Each Authority is entitled to a reservation fee of 1%
20of the credit awarded under this Section for each year of the
21award to support the cost of compliance monitoring. An
22Authority may exercise the option to impose a compliance fee
23or a penalty in the exercise of its compliance monitoring
24function under this Act.
25    Section 20. Recapture. If, under Section 42 of the



SB3233- 10 -LRB103 38198 HLH 68331 b

1Internal Revenue Code, a portion of any federal tax credit
2claimed with respect to a qualified development for which a
3credit has been awarded under this Act is required by the
4Internal Revenue Service to be recaptured during the first 6
5years after a project is placed in service, then, within 60
6days after becoming aware of the federal tax credit recapture,
7the project owner shall provide the Department, the Department
8of Insurance, and the applicable Authority with notice of the
9federal tax credit recapture. Notice shall be provided in the
10manner and form as provided by the Department, the Department
11of Insurance, and the Authority, respectively. If an Authority
12issues a federal Form 8823 to the owner of a qualified
13development that has been awarded a credit under this Act, and
14an Authority has not been notified within 6 months of filing
15the Form 8823 that the noncompliance has been remedied, an
16Authority shall submit the Form 8823 to the Department or
17Department of Insurance, as applicable. The amount of credit
18subject to recapture shall be proportionately equal to the
19amount of the qualified development's federal tax credits that
20are subject to recapture. If the project owner (or one of the
21project owner's direct or indirect members) fails to notify
22the Department or the Department of Insurance, as applicable,
23of any recapture of the federal tax credit, then the entire
24amount of the State tax credit awarded for the qualified
25development is subject to recapture. The qualified taxpayer
26subject to recapture shall increase the qualified taxpayer's



SB3233- 11 -LRB103 38198 HLH 68331 b

1tax by the amount of any credit subject to recapture in the tax
2year the qualified taxpayer is notified of the recapture. If
3multiple taxpayers claimed credit with respect to the building
4for which credit is to be recaptured, each of those taxpayers
5shall be liable for a portion of the recapture equal to the
6percentages of credit with respect to the building originally
7claimed by the taxpayer.
8    Section 25. Filing requirements. An owner of a qualified
9development that has been awarded a credit and each qualified
10taxpayer claiming any portion of the credit must file with
11their State tax returns a copy of the State credit eligibility
12statement issued by an Authority for that qualified
13development. In addition, the owner of a qualified development
14or its designee shall file a copy of the allocation schedule
15certification prior to any tax return being filed claiming a
16State credit for such qualified development. A qualified
17taxpayer receiving any allocated portion of a credit through a
18pass-through entity shall attach to its State tax return a
19copy of the Schedule K-1-P for that taxable year.
20    Section 30. Compliance monitoring. An Authority, in
21consultation with the Department and Department of Insurance,
22shall monitor and oversee compliance with the provisions of
23this Act and shall report specific occurrences of
24noncompliance to the Department and the Department of



SB3233- 12 -LRB103 38198 HLH 68331 b

1Insurance in the manner and form as provided by the Department
2and the Department of Insurance. An Authority shall make every
3effort to monitor and report noncompliance using the same
4procedures used for compliance monitoring of the federal tax
6    Section 35. Report to the General Assembly.
7    (a) Each Authority must, by March 31, 2026 and by March 31
8of each year thereafter, provide a written report to the
9General Assembly and must publish that report on its website.
10    (b) The report shall:
11        (1) set forth the number of qualified developments
12    that have been awarded tax credits under this Act during
13    the calendar year and the total number of units supported
14    by each qualified development;
15        (2) describe each qualified development that has been
16    awarded tax credits under this Act, including, without
17    limitation, the geographic location of the qualified
18    development, the household type, the income levels
19    intended to be served by the qualified development, and
20    the rents or set-asides authorized for each qualified
21    development;
22        (3) provide housing market information that
23    demonstrates how the qualified developments supported by
24    the tax credits are addressing the need for affordable
25    housing within the communities they are intended to serve



SB3233- 13 -LRB103 38198 HLH 68331 b

1    as well as information about any remaining disparities in
2    the affordability of housing within those communities; and
3        (4) provide information about the percentage of
4    qualified developments that were awarded credits and that
5    received incentive scoring points as a result of the
6    general contractor, property manager, architect, or
7    sponsor being certified under the Business Enterprise
8    Program for Minorities, Females, and Persons with a
9    Disability.
10    Section 40. Exempt from automatic sunset. The credit under
11this Act is exempt from the provisions of Section 250 of the
12Illinois Income Tax Act.
13    Section 900. The Illinois Income Tax Act is amended by
14adding Section 241 as follows:
15    (35 ILCS 5/241 new)
16    Sec. 241. Build Illinois Homes Tax Credit Act.
17    (a) For taxable years beginning on or after January 1,
182025, any eligible taxpayer with respect to a credit awarded
19in accordance with the Build Illinois Homes Tax Credit Act
20that is named on an allocation schedule certification for a
21particular tax year is entitled to a credit against the taxes
22imposed by subsections (a) and (b) of Section 201 as provided
23in the Build Illinois Homes Tax Credit Act.



SB3233- 14 -LRB103 38198 HLH 68331 b

1    (b) The taxpayer shall attach a copy of the allocation
2schedule certification and the State credit eligibility
3certificate issued under the Build Illinois Homes Tax Credit
4Act to the tax return on which the credits are to be claimed.
5    (c) If, during any taxable year, a taxpayer is notified of
6a recapture of a credit previously claimed on a State income
7tax return in accordance with 42 U.S.C. 42, the tax imposed
8under subsections (a) and (b) of Section 201 for that taxpayer
9for that taxable year shall be increased. The amount of the
10increase shall be determined by (i) recomputing the Build
11Illinois Homes Tax Credit that would have been allowed for the
12year in which the credit was originally allowed by eliminating
13the recaptured amount from such computation, and (ii)
14subtracting that recomputed credit from the amount of credit
15previously allowed. No Build Illinois Homes Tax Credit shall
16be allowed with respect to any credit subject to a recapture
17notice for any taxable year ending after the issuance of a
18recapture notice.
19    (d) This Section is exempt from the provisions of Section
21    Section 905. The Illinois Insurance Code is amended by
22changing Sections 409 and 444 as follows:
23    (215 ILCS 5/409)  (from Ch. 73, par. 1021)
24    Sec. 409. Annual privilege tax payable by companies.



SB3233- 15 -LRB103 38198 HLH 68331 b

1    (1) As of January 1, 1999 for all health maintenance
2organization premiums written; as of July 1, 1998 for all
3premiums written as accident and health business, voluntary
4health service plan business, dental service plan business, or
5limited health service organization business; and as of
6January 1, 1998 for all other types of insurance premiums
7written, every company doing any form of insurance business in
8this State, including, but not limited to, every risk
9retention group, and excluding all fraternal benefit
10societies, all farm mutual companies, all religious charitable
11risk pooling trusts, and excluding all statutory residual
12market and special purpose entities in which companies are
13statutorily required to participate, whether incorporated or
14otherwise, shall pay, for the privilege of doing business in
15this State, to the Director for the State treasury a State tax
16equal to 0.5% of the net taxable premium written, together
17with any amounts due under Section 444 of this Code, except
18that the tax to be paid on any premium derived from any
19accident and health insurance or on any insurance business
20written by any company operating as a health maintenance
21organization, voluntary health service plan, dental service
22plan, or limited health service organization shall be equal to
230.4% of such net taxable premium written, together with any
24amounts due under Section 444. Upon the failure of any company
25to pay any such tax due, the Director may, by order, revoke or
26suspend the company's certificate of authority after giving 20



SB3233- 16 -LRB103 38198 HLH 68331 b

1days written notice to the company, or commence proceedings
2for the suspension of business in this State under the
3procedures set forth by Section 401.1 of this Code. The gross
4taxable premium written shall be the gross amount of premiums
5received on direct business during the calendar year on
6contracts covering risks in this State, except premiums on
7annuities, premiums on which State premium taxes are
8prohibited by federal law, premiums paid by the State for
9health care coverage for Medicaid eligible insureds as
10described in Section 5-2 of the Illinois Public Aid Code,
11premiums paid for health care services included as an element
12of tuition charges at any university or college owned and
13operated by the State of Illinois, premiums on group insurance
14contracts under the State Employees Group Insurance Act of
151971, and except premiums for deferred compensation plans for
16employees of the State, units of local government, or school
17districts. The net taxable premium shall be the gross taxable
18premium written reduced only by the following:
19        (a) the amount of premiums returned thereon which
20    shall be limited to premiums returned during the same
21    preceding calendar year and shall not include the return
22    of cash surrender values or death benefits on life
23    policies including annuities;
24        (b) dividends on such direct business that have been
25    paid in cash, applied in reduction of premiums or left to
26    accumulate to the credit of policyholders or annuitants.



SB3233- 17 -LRB103 38198 HLH 68331 b

1    In the case of life insurance, no deduction shall be made
2    for the payment of deferred dividends paid in cash to
3    policyholders on maturing policies; dividends left to
4    accumulate to the credit of policyholders or annuitants
5    shall be included as gross taxable premium written when
6    such dividend accumulations are applied to purchase
7    paid-up insurance or to shorten the endowment or premium
8    paying period.
9    (2) The annual privilege tax payment due from a company
10under subsection (4) of this Section may be reduced by: (a) the
11excess amount, if any, by which the aggregate income taxes
12paid by the company, on a cash basis, for the preceding
13calendar year under Sections 601 and 803 of the Illinois
14Income Tax Act exceed 1.5% of the company's net taxable
15premium written for that prior calendar year, as determined
16under subsection (1) of this Section; and (b) the amount of any
17fire department taxes paid by the company during the preceding
18calendar year under Section 11-10-1 of the Illinois Municipal
19Code. Any deductible amount or offset allowed under items (a)
20and (b) of this subsection for any calendar year will not be
21allowed as a deduction or offset against the company's
22privilege tax liability for any other taxing period or
23calendar year.
24    (3) If a company survives or was formed by a merger,
25consolidation, reorganization, or reincorporation, the
26premiums received and amounts returned or paid by all



SB3233- 18 -LRB103 38198 HLH 68331 b

1companies party to the merger, consolidation, reorganization,
2or reincorporation shall, for purposes of determining the
3amount of the tax imposed by this Section, be regarded as
4received, returned, or paid by the surviving or new company.
5    (4)(a) All companies subject to the provisions of this
6Section shall make an annual return for the preceding calendar
7year on or before March 15 setting forth such information on
8such forms as the Director may reasonably require. Payments of
9quarterly installments of the taxpayer's total estimated tax
10for the current calendar year shall be due on or before April
1115, June 15, September 15, and December 15 of such year, except
12that all companies transacting insurance in this State whose
13annual tax for the immediately preceding calendar year was
14less than $5,000 shall make only an annual return. Failure of a
15company to make the annual payment, or to make the quarterly
16payments, if required, of at least 25% of either (i) the total
17tax paid during the previous calendar year or (ii) 80% of the
18actual tax for the current calendar year shall subject it to
19the penalty provisions set forth in Section 412 of this Code.
20    (b) Notwithstanding the foregoing provisions, no annual
21return shall be required or made on March 15, 1998, under this
22subsection. For the calendar year 1998:
23        (i) each health maintenance organization shall have no
24    estimated tax installments;
25        (ii) all companies subject to the tax as of July 1,
26    1998 as set forth in subsection (1) shall have estimated



SB3233- 19 -LRB103 38198 HLH 68331 b

1    tax installments due on September 15 and December 15 of
2    1998 which installments shall each amount to no less than
3    one-half of 80% of the actual tax on its net taxable
4    premium written during the period July 1, 1998, through
5    December 31, 1998; and
6        (iii) all other companies shall have estimated tax
7    installments due on June 15, September 15, and December 15
8    of 1998 which installments shall each amount to no less
9    than one-third of 80% of the actual tax on its net taxable
10    premium written during the calendar year 1998.
11    In the year 1999 and thereafter all companies shall make
12annual and quarterly installments of their estimated tax as
13provided by paragraph (a) of this subsection.
14    (5) In addition to the authority specifically granted
15under Article XXV of this Code, the Director shall have such
16authority to adopt rules and establish forms as may be
17reasonably necessary for purposes of determining the
18allocation of Illinois corporate income taxes paid under
19subsections (a) through (d) of Section 201 of the Illinois
20Income Tax Act amongst members of a business group that files
21an Illinois corporate income tax return on a unitary basis,
22for purposes of regulating the amendment of tax returns, for
23purposes of defining terms, and for purposes of enforcing the
24provisions of Article XXV of this Code. The Director shall
25also have authority to defer, waive, or abate the tax imposed
26by this Section if in his opinion the company's solvency and



SB3233- 20 -LRB103 38198 HLH 68331 b

1ability to meet its insured obligations would be immediately
2threatened by payment of the tax due.
3    (6) This Section is subject to the provisions of Section
410 of the New Markets Development Program Act.
5    (7) This Section is subject to the provisions of the Build
6Illinois Homes Tax Credit Act.
7(Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)
8    (215 ILCS 5/444)  (from Ch. 73, par. 1056)
9    Sec. 444. Retaliation.
10    (1) Whenever the existing or future laws of any other
11state or country shall require of companies incorporated or
12organized under the laws of this State as a condition
13precedent to their doing business in such other state or
14country, compliance with laws, rules, regulations, and
15prohibitions more onerous or burdensome than the rules and
16regulations imposed by this State on foreign or alien
17companies, or shall require any deposit of securities or other
18obligations in such state or country, for the protection of
19policyholders or otherwise or require of such companies or
20agents thereof or brokers the payment of penalties, fees,
21charges, or taxes greater than the penalties, fees, charges,
22or taxes required in the aggregate for like purposes by this
23Code or any other law of this State, of foreign or alien
24companies, agents thereof or brokers, then such laws, rules,
25regulations, and prohibitions of said other state or country



SB3233- 21 -LRB103 38198 HLH 68331 b

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



SB3233- 22 -LRB103 38198 HLH 68331 b

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



SB3233- 23 -LRB103 38198 HLH 68331 b

1business of insurance whether calculated as a percentage of
2income, gross receipts, premium, or otherwise.
3    (4) Nothing contained in this Section or Section 409 or
4Section 444.1 is intended to authorize or expand any power of
5local governmental units or municipalities to impose taxes,
6fees, or charges.
7    (5) This Section is subject to the provisions of Section
810 of the New Markets Development Program Act.
9    (6) This Section is subject to the provisions of the Build
10Illinois Homes Tax Credit Act.
11(Source: P.A. 98-1169, eff. 1-9-15.)
12    Section 999. Effective date. This Act takes effect upon
13becoming law.