Full Text of HB5809 96th General Assembly
HB5809 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB5809
Introduced 2/10/2010, by Rep. Sidney H. Mathias - Renée Kosel - Darlene J. Senger - Elizabeth Coulson - Raymond Poe, et al. SYNOPSIS AS INTRODUCED: |
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35 ILCS 5/207 |
from Ch. 120, par. 2-207 |
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Amends the Illinois Income Tax Act. Extends the carryback and carryover periods for net losses by an additional 5 years.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB5809 |
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LRB096 18412 HLH 33790 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing Section 207 as follows:
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| (35 ILCS 5/207) (from Ch. 120, par. 2-207)
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| Sec. 207. Net Losses.
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| (a) If after applying all of the (i) modifications
provided | 9 |
| for in paragraph (2) of Section 203(b), paragraph (2) of | 10 |
| Section
203(c) and paragraph (2) of Section 203(d) and (ii) the | 11 |
| allocation and
apportionment provisions of Article 3 of this
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| Act and subsection (c) of this Section, the taxpayer's net | 13 |
| income results in a loss;
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| (1) for any taxable year ending prior to December 31, | 15 |
| 1999, such loss
shall be allowed
as a carryover or | 16 |
| carryback deduction in the manner allowed under Section
172 | 17 |
| of the Internal Revenue Code;
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| (2) for any taxable year ending on or after December | 19 |
| 31, 1999 and prior
to December 31, 2003, such loss
shall be | 20 |
| allowed as a carryback to each of the 7 2 taxable years | 21 |
| preceding the
taxable year of such loss and shall be a net | 22 |
| operating loss carryover to each of the
25 20 taxable years | 23 |
| following the taxable year of such loss; and
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HB5809 |
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LRB096 18412 HLH 33790 b |
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| (3) for any taxable year ending on or after December | 2 |
| 31, 2003, such loss
shall be allowed as a net operating | 3 |
| loss carryover to each of the 17 12 taxable years
following | 4 |
| the taxable year of such loss.
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| (a-5) Election to relinquish carryback and order of | 6 |
| application of
losses.
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| (A) For losses incurred in tax years ending prior | 8 |
| to December 31,
2003, the taxpayer may elect to | 9 |
| relinquish the entire carryback period
with respect to | 10 |
| such loss. Such election shall be made in the form and | 11 |
| manner
prescribed by the Department and shall be made | 12 |
| by the due date (including
extensions of time) for | 13 |
| filing the taxpayer's return for the taxable year in
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| which such loss is incurred, and such election, once | 15 |
| made, shall be
irrevocable.
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| (B) The entire amount of such loss shall be carried | 17 |
| to the earliest
taxable year to which such loss may be | 18 |
| carried. The amount of such loss which
shall be carried | 19 |
| to each of the other taxable years shall be the excess, | 20 |
| if
any, of the amount of such loss over the sum of the | 21 |
| deductions for carryback or
carryover of such loss | 22 |
| allowable for each of the prior taxable years to which
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| such loss may be carried.
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| (b) Any loss determined under subsection (a) of this | 25 |
| Section must be carried
back or carried forward in the same | 26 |
| manner for purposes of subsections (a)
and (b) of Section 201 |
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HB5809 |
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LRB096 18412 HLH 33790 b |
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| of this Act as for purposes of subsections (c) and
(d) of | 2 |
| Section 201 of this Act.
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| (c) Notwithstanding any other provision of this Act, for | 4 |
| each taxable year ending on or after December 31, 2008, for | 5 |
| purposes of computing the loss for the taxable year under | 6 |
| subsection (a) of this Section and the deduction taken into | 7 |
| account for the taxable year for a net operating loss carryover | 8 |
| under paragraphs (1), (2), and (3) of subsection (a) of this | 9 |
| Section, the loss and net operating loss carryover shall be | 10 |
| reduced in an amount equal to the reduction to the net | 11 |
| operating loss and net operating loss carryover to the taxable | 12 |
| year, respectively, required under Section 108(b)(2)(A) of the | 13 |
| Internal Revenue Code, multiplied by a fraction, the numerator | 14 |
| of which is the amount of discharge of indebtedness income that | 15 |
| is excluded from gross income for the taxable year (but only if | 16 |
| the taxable year ends on or after December 31, 2008) under | 17 |
| Section 108(a) of the Internal Revenue Code and that would have | 18 |
| been allocated and apportioned to this State under Article 3 of | 19 |
| this Act but for that exclusion, and the denominator of which | 20 |
| is the total amount of discharge of indebtedness income | 21 |
| excluded from gross income under Section 108(a) of the Internal | 22 |
| Revenue Code for the taxable year. The reduction required under | 23 |
| this subsection (c) shall be made after the determination of | 24 |
| Illinois net income for the taxable year in which the | 25 |
| indebtedness is discharged.
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| (Source: P.A. 95-233, eff. 8-16-07.)
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