Illinois General Assembly - Full Text of SB0362
Illinois General Assembly

Previous General Assemblies

Full Text of SB0362  93rd General Assembly

SB0362ham001 93rd General Assembly


093_SB0362ham001











                                     LRB093 02033 SJM 15513 a

 1                    AMENDMENT TO SENATE BILL 362

 2        AMENDMENT NO.     .  Amend Senate Bill 362, by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The  State  Treasurer  Act  is  amended  by
 5    changing Section 16.5 as follows:

 6        (15 ILCS 505/16.5)
 7        Sec. 16.5. College Savings Pool.  The State Treasurer may
 8    establish and administer a College Savings Pool to supplement
 9    and  enhance the investment opportunities otherwise available
10    to persons seeking to finance the costs of higher  education.
11    The  State  Treasurer,  in  administering the College Savings
12    Pool, may receive moneys paid into the pool by a  participant
13    and may serve as the fiscal agent of that participant for the
14    purpose of holding  and investing those moneys.
15        "Participant",  as used in this Section, means any person
16    who makes investments in the pool.  "Designated beneficiary",
17    as used in this Section, means any person on whose behalf  an
18    account  is  established  in  the  College  Savings Pool by a
19    participant.  Both in-state and out-of-state persons  may  be
20    participants  and  designated  beneficiaries  in  the College
21    Savings Pool.
22        New  accounts  in  the  College  Savings  Pool  shall  be
 
                            -2-      LRB093 02033 SJM 15513 a
 1    processed  through  participating   financial   institutions.
 2    "Participating   financial  institution",  as  used  in  this
 3    Section, means  any  financial  institution  insured  by  the
 4    Federal  Deposit  Insurance  Corporation  and  lawfully doing
 5    business in the  State  of  Illinois  and  any  credit  union
 6    approved  by  the State Treasurer and lawfully doing business
 7    in the State of Illinois that agrees to process new  accounts
 8    in   the   College  Savings  Pool.   Participating  financial
 9    institutions may charge a processing fee to  participants  to
10    open  an  account in the pool that shall not exceed $30 until
11    the year 2001.  Beginning in 2001 and every year  thereafter,
12    the  maximum  fee  limit  shall  be adjusted by the Treasurer
13    based on the Consumer  Price  Index  for  the  North  Central
14    Region as published by the United States Department of Labor,
15    Bureau  of  Labor  Statistics  for  the immediately preceding
16    calendar year.  Every contribution received  by  a  financial
17    institution  for investment in the College Savings Pool shall
18    be transferred from the financial institution to  a  location
19    selected  by  the  State  Treasurer  within  one business day
20    following the day that the funds must be  made  available  in
21    accordance  with  federal  law.   All communications from the
22    State  Treasurer  to   participants   shall   reference   the
23    participating  financial institution at which the account was
24    processed.
25        The Treasurer  may  invest  the  moneys  in  the  College
26    Savings  Pool  in  the  same  manner,  in  the  same types of
27    investments, and subject to the same limitations provided for
28    the investment of moneys  by  the  Illinois  State  Board  of
29    Investment.   To  enhance  the  safety  and  liquidity of the
30    College Savings Pool, to ensure the  diversification  of  the
31    investment  portfolio  of  the pool, and in an effort to keep
32    investment dollars  in  the  State  of  Illinois,  the  State
33    Treasurer  shall  make a percentage of each account available
34    for investment in participating financial institutions  doing
 
                            -3-      LRB093 02033 SJM 15513 a
 1    business  in  the  State.   The State Treasurer shall deposit
 2    with the participating financial  institution  at  which  the
 3    account  was  processed  the  following  percentage  of  each
 4    account  at  a  prevailing  rate  offered by the institution,
 5    provided that the  deposit  is  federally  insured  or  fully
 6    collateralized  and  the institution accepts the deposit: 10%
 7    of the total amount of each account for which the current age
 8    of the beneficiary is less than 7 years of age,  20%  of  the
 9    total  amount of each account for which the beneficiary is at
10    least 7 years of age and less than 12 years of age,  and  50%
11    of the total amount of each account for which the current age
12    of  the  beneficiary  is at least 12 years of age.  The State
13    Treasurer shall adjust each  account  at  least  annually  to
14    ensure  compliance  with  this  Section.  The Treasurer shall
15    develop, publish, and implement an investment policy covering
16    the investment of the moneys in  the  College  Savings  Pool.
17    The  policy shall be published (i) at least once each year in
18    at  least  one  newspaper  of  general  circulation  in  both
19    Springfield and Chicago and (ii) each year  as  part  of  the
20    audit  of  the  College  Savings Pool by the Auditor General,
21    which  shall  be  distributed  to  all   participants.    The
22    Treasurer  shall  notify all participants in writing, and the
23    Treasurer shall publish in a newspaper of general circulation
24    in  both  Chicago  and  Springfield,  any  changes   to   the
25    previously  published  investment policy at least 30 calendar
26    days before implementing the policy.  Any  investment  policy
27    adopted  by  the  Treasurer  shall be reviewed and updated if
28    necessary within 90 days following the date  that  the  State
29    Treasurer takes office.
30        Participants  shall be required to use moneys distributed
31    from the College  Savings  Pool  for  qualified  expenses  at
32    eligible  educational  institutions. "Qualified expenses", as
33    used in this Section, means the following: (i) tuition, fees,
34    and the costs of books, supplies, and equipment required  for
 
                            -4-      LRB093 02033 SJM 15513 a
 1    enrollment   or   attendance   at   an  eligible  educational
 2    institution and (ii) certain room and board expenses incurred
 3    while attending an eligible educational institution at  least
 4    half-time.  "Eligible  educational  institutions", as used in
 5    this Section,  means  public  and  private  colleges,  junior
 6    colleges,    graduate   schools,   and   certain   vocational
 7    institutions that are described in Section 481 of the  Higher
 8    Education  Act of 1965 (20 U.S.C. 1088) and that are eligible
 9    to  participate  in  Department  of  Education  student   aid
10    programs.  A  student  shall  be considered to be enrolled at
11    least half-time if the student is enrolled for at least  half
12    the  full-time academic work load for the course of study the
13    student is pursuing as determined under the standards of  the
14    institution  at which the student is enrolled.  Distributions
15    made from the pool  for  qualified  expenses  shall  be  made
16    directly to the eligible educational institution, directly to
17    a  vendor,  or  in  the  form  of a check payable to both the
18    beneficiary and the institution or vendor.  Any  moneys  that
19    are  distributed  in  any  other  manner or that are used for
20    expenses  other  than  qualified  expenses  at  an   eligible
21    educational  institution shall be subject to a penalty of 10%
22    of  the  earnings  unless  the  beneficiary   dies,   becomes
23    disabled,  or  receives  a scholarship that equals or exceeds
24    the distribution.  Penalties shall be withheld  at  the  time
25    the distribution is made.
26        The  Treasurer  shall limit the contributions that may be
27    made on behalf  of  a  designated  beneficiary  based  on  an
28    actuarial  estimate of what is required to pay tuition, fees,
29    and room and board for 5 undergraduate years at  the  highest
30    cost eligible educational institution. The contributions made
31    on  behalf  of  a beneficiary who is also a beneficiary under
32    the  Illinois  Prepaid  Tuition  Program  shall  be   further
33    restricted  to ensure that the contributions in both programs
34    combined do not exceed the limit established for the  College
 
                            -5-      LRB093 02033 SJM 15513 a
 1    Savings  Pool.   The  Treasurer  shall  provide  the Illinois
 2    Student Assistance Commission each year at a time  designated
 3    by  the  Commission,  an electronic report of all participant
 4    accounts in the Treasurer's  College  Savings  Pool,  listing
 5    total  contributions  and  disbursements from each individual
 6    account  during  the  previous  calendar   year.    As   soon
 7    thereafter   as   is   possible   following  receipt  of  the
 8    Treasurer's   report,   the   Illinois   Student   Assistance
 9    Commission shall, in turn,  provide  the  Treasurer  with  an
10    electronic   report   listing   those  College  Savings  Pool
11    participants who also  participate  in  the  State's  prepaid
12    tuition   program,   administered  by  the  Commission.   The
13    Commission shall be responsible for filing any  combined  tax
14    reports  regarding  State qualified savings programs required
15    by the United States Internal Revenue Service.  The Treasurer
16    shall work with the Illinois Student Assistance Commission to
17    coordinate the marketing of the College Savings Pool and  the
18    Illinois  Prepaid  Tuition Program when considered beneficial
19    by the Treasurer and the Director  of  the  Illinois  Student
20    Assistance  Commission.   The  Treasurer's  office  shall not
21    publicize or otherwise market the  College  Savings  Pool  or
22    accept  any  moneys  into  the  College Savings Pool prior to
23    March 1,  2000.   The  Treasurer  shall  provide  a  separate
24    accounting   for   each   designated   beneficiary   to  each
25    participant, the Illinois Student Assistance Commission,  and
26    the  participating financial institution at which the account
27    was processed.  No interest in the program may be pledged  as
28    security for a loan.
29        The assets of the College Savings Pool and its income and
30    operation  shall  be exempt from all taxation by the State of
31    Illinois and any of its subdivisions.  The  accrued  earnings
32    on  investments  in  the  Pool  once disbursed on behalf of a
33    designated beneficiary shall be  similarly  exempt  from  all
34    taxation  by  the  State of Illinois and its subdivisions, so
 
                            -6-      LRB093 02033 SJM 15513 a
 1    long as they are used for qualified expenses.   Contributions
 2    to a College Savings Pool account during the taxable year may
 3    be deducted from adjusted gross income as provided in Section
 4    203  of  the Illinois Income Tax Act.  The provisions of this
 5    paragraph are exempt from Section 250 of the Illinois  Income
 6    Tax Act.
 7        The  Treasurer  shall  adopt  rules  he  or she considers
 8    necessary for the efficient  administration  of  the  College
 9    Savings  Pool.   The  rules shall provide whatever additional
10    parameters and restrictions are necessary to ensure that  the
11    College  Savings  Pool  meets  all  of the requirements for a
12    qualified state tuition program  under  Section  529  of  the
13    Internal  Revenue  Code  (26  U.S.C.  529).   The rules shall
14    provide for the administration expenses of  the  pool  to  be
15    paid  from  its  earnings  and for the investment earnings in
16    excess of the expenses and all moneys collected as  penalties
17    to be credited or paid monthly to the several participants in
18    the  pool  in a manner which equitably reflects the differing
19    amounts of their respective investments in the pool  and  the
20    differing periods of time for which those amounts were in the
21    custody  of  the  pool.   Also,  the  rules shall require the
22    maintenance of records that enable the Treasurer's office  to
23    produce  a  report  for  each  account  in  the pool at least
24    annually that documents the account  balance  and  investment
25    earnings.  Notice of any proposed amendments to the rules and
26    regulations  shall  be  provided to all participants prior to
27    adoption.  Amendments to rules and  regulations  shall  apply
28    only   to  contributions  made  after  the  adoption  of  the
29    amendment.
30        Upon  creating  the  College  Savings  Pool,  the   State
31    Treasurer shall give bond with 2 or more sufficient sureties,
32    payable  to  and  for  the benefit of the participants in the
33    College  Savings  Pool,  in  the  penal  sum  of  $1,000,000,
34    conditioned upon the faithful discharge of his or her  duties
 
                            -7-      LRB093 02033 SJM 15513 a
 1    in relation to the College Savings Pool.
 2        No  contributions  to the College Savings Pool authorized
 3    by  this  Section  shall  be  considered  in  evaluating  the
 4    financial situation  of  the  designated  beneficiary  or  be
 5    deemed  a financial resource of or a form of financial aid or
 6    assistance to the designated  beneficiary,  for  purposes  of
 7    determining   eligibility  for  any  scholarship,  grant,  or
 8    monetary  assistance  awarded   by   the   Illinois   Student
 9    Assistance  Commission, the State, or any agency thereof; nor
10    shall contributions to the College Savings  Pool  reduce  the
11    amount of any scholarship, grant, or monetary assistance that
12    the  designated  beneficiary is eligible to be awarded by the
13    Illinois Student Assistance Commission,  the  State,  or  any
14    agency thereof in accordance with the provisions of any State
15    law.
16    (Source:  P.A.  91-607,  eff.  1-1-00;  91-829,  eff. 1-1-01;
17    92-16, eff.  6-28-01;  92-439,  eff.  8-17-01;  92-626,  eff.
18    7-11-02.)

19        Section  10.   The  Illinois Income Tax Act is amended by
20    changing Section 203 as follows:

21        (35 ILCS 5/203) (from Ch. 120, par. 2-203)
22        Sec. 203.  Base income defined.
23        (a)  Individuals.
24             (1)  In general.  In the case of an individual, base
25        income means an amount equal to the  taxpayer's  adjusted
26        gross   income  for  the  taxable  year  as  modified  by
27        paragraph (2).
28             (2)  Modifications.   The  adjusted   gross   income
29        referred  to in paragraph (1) shall be modified by adding
30        thereto the sum of the following amounts:
31                  (A)  An amount equal to  all  amounts  paid  or
32             accrued  to  the  taxpayer  as interest or dividends
 
                            -8-      LRB093 02033 SJM 15513 a
 1             during the taxable year to the extent excluded  from
 2             gross  income  in  the computation of adjusted gross
 3             income, except stock dividends of  qualified  public
 4             utilities   described   in  Section  305(e)  of  the
 5             Internal Revenue Code;
 6                  (B)  An amount  equal  to  the  amount  of  tax
 7             imposed  by  this  Act  to  the extent deducted from
 8             gross income in the computation  of  adjusted  gross
 9             income for the taxable year;
10                  (C)  An  amount  equal  to  the amount received
11             during the taxable year as a recovery or  refund  of
12             real   property  taxes  paid  with  respect  to  the
13             taxpayer's principal residence under the Revenue Act
14             of 1939 and for which  a  deduction  was  previously
15             taken  under  subparagraph (L) of this paragraph (2)
16             prior to July 1, 1991, the retrospective application
17             date of Article 4 of Public Act 87-17.  In the  case
18             of  multi-unit  or  multi-use  structures  and  farm
19             dwellings,  the  taxes  on  the taxpayer's principal
20             residence shall be that portion of the  total  taxes
21             for  the  entire  property  which is attributable to
22             such principal residence;
23                  (D)  An amount  equal  to  the  amount  of  the
24             capital  gain deduction allowable under the Internal
25             Revenue Code, to  the  extent  deducted  from  gross
26             income in the computation of adjusted gross income;
27                  (D-5)  An amount, to the extent not included in
28             adjusted  gross income, equal to the amount of money
29             withdrawn by the taxpayer in the taxable year from a
30             medical care savings account and the interest earned
31             on the account in the taxable year of  a  withdrawal
32             pursuant  to  subsection  (b)  of  Section 20 of the
33             Medical Care Savings Account Act or  subsection  (b)
34             of  Section  20  of the Medical Care Savings Account
 
                            -9-      LRB093 02033 SJM 15513 a
 1             Act of 2000;
 2                  (D-10)  For taxable years ending after December
 3             31,  1997,  an  amount   equal   to   any   eligible
 4             remediation  costs  that  the individual deducted in
 5             computing adjusted gross income and  for  which  the
 6             individual  claims  a credit under subsection (l) of
 7             Section 201;
 8                  (D-15)  For taxable years 2001 and  thereafter,
 9             an  amount equal to the bonus depreciation deduction
10             (30%  of  the  adjusted  basis  of   the   qualified
11             property) taken on the taxpayer's federal income tax
12             return  for the taxable year under subsection (k) of
13             Section 168 of the Internal Revenue Code; and
14                  (D-16)  If the taxpayer reports a capital  gain
15             or  loss on the taxpayer's federal income tax return
16             for the taxable year based on a sale or transfer  of
17             property  for which the taxpayer was required in any
18             taxable year to make an addition modification  under
19             subparagraph  (D-15),  then  an  amount equal to the
20             aggregate amount of  the  deductions  taken  in  all
21             taxable years under subparagraph (Z) with respect to
22             that property.;
23                  The  taxpayer  is required to make the addition
24             modification under this subparagraph only once  with
25             respect to any one piece of property;. and
26                  (D-20)  (D-15)  For  taxable years beginning on
27             or after January 1, 2002 and  ending  on  or  before
28             December  31,  2002,  in  the case of a distribution
29             from a qualified tuition program under  Section  529
30             of  the  Internal  Revenue  Code,  other  than (i) a
31             distribution from a  College  Savings  Pool  created
32             under  Section  16.5  of  the State Treasurer Act or
33             (ii)  a  distribution  from  the  Illinois   Prepaid
34             Tuition  Trust  Fund,  an amount equal to the amount
 
                            -10-     LRB093 02033 SJM 15513 a
 1             excluded   from   gross   income    under    Section
 2             529(c)(3)(B).   For  taxable  years  beginning on or
 3             after January 1, 2003, in the case of a distribution
 4             from a qualified tuition program under  Section  529
 5             of  the  Internal  Revenue  Code,  other  than (i) a
 6             distribution from a  College  Savings  Pool  created
 7             under  Section 16.5 of the State Treasurer Act, (ii)
 8             a distribution from  the  Illinois  Prepaid  Tuition
 9             Trust Fund, or (iii) a distribution from a qualified
10             tuition  program  under  Section 529 of the Internal
11             Revenue Code that is administered by  a  state  that
12             does  not  permit a sales load exceeding 4% and that
13             exempts from its income tax moneys distributed  from
14             a  qualified  tuition  program  administered  by the
15             State of Illinois, an amount  equal  to  the  amount
16             excluded    from    gross   income   under   Section
17             529(c)(3)(B);
18        and by deducting from the total so obtained  the  sum  of
19        the following amounts:
20                  (E)  For  taxable  years ending before December
21             31, 2001, any  amount  included  in  such  total  in
22             respect  of  any  compensation  (including  but  not
23             limited  to  any  compensation  paid or accrued to a
24             serviceman while a prisoner of  war  or  missing  in
25             action)  paid  to  a  resident by reason of being on
26             active duty in the Armed Forces of the United States
27             and in respect of any compensation paid  or  accrued
28             to  a  resident who as a governmental employee was a
29             prisoner of war or missing in action, and in respect
30             of any compensation paid to a resident  in  1971  or
31             thereafter for annual training performed pursuant to
32             Sections  502  and 503, Title 32, United States Code
33             as a member of  the  Illinois  National  Guard.  For
34             taxable  years ending on or after December 31, 2001,
 
                            -11-     LRB093 02033 SJM 15513 a
 1             any amount included in such total in respect of  any
 2             compensation  (including  but  not  limited  to  any
 3             compensation paid or accrued to a serviceman while a
 4             prisoner  of  war  or  missing  in action) paid to a
 5             resident  by  reason  of  being  a  member  of   any
 6             component  of  the Armed Forces of the United States
 7             and in respect of any compensation paid  or  accrued
 8             to  a  resident who as a governmental employee was a
 9             prisoner of war or missing in action, and in respect
10             of any compensation paid to a resident  in  2001  or
11             thereafter  by  reason  of  being  a  member  of the
12             Illinois National  Guard.  The  provisions  of  this
13             amendatory  Act  of  the  92nd  General Assembly are
14             exempt from the provisions of Section 250;
15                  (F)  An amount equal to all amounts included in
16             such total pursuant to the  provisions  of  Sections
17             402(a),  402(c), 403(a), 403(b), 406(a), 407(a), and
18             408 of the Internal Revenue  Code,  or  included  in
19             such  total as distributions under the provisions of
20             any retirement or disability plan for  employees  of
21             any  governmental  agency  or  unit,  or  retirement
22             payments  to  retired  partners,  which payments are
23             excluded  in  computing  net  earnings   from   self
24             employment  by  Section 1402 of the Internal Revenue
25             Code and regulations adopted pursuant thereto;
26                  (G)  The valuation limitation amount;
27                  (H)  An amount equal to the amount of  any  tax
28             imposed  by  this  Act  which  was  refunded  to the
29             taxpayer and included in such total for the  taxable
30             year;
31                  (I)  An amount equal to all amounts included in
32             such total pursuant to the provisions of Section 111
33             of  the Internal Revenue Code as a recovery of items
34             previously deducted from adjusted  gross  income  in
 
                            -12-     LRB093 02033 SJM 15513 a
 1             the computation of taxable income;
 2                  (J)  An   amount   equal   to  those  dividends
 3             included  in  such  total  which  were  paid  by   a
 4             corporation which conducts business operations in an
 5             Enterprise  Zone or zones created under the Illinois
 6             Enterprise Zone Act, and conducts substantially  all
 7             of its operations in an Enterprise Zone or zones;
 8                  (K)  An   amount   equal   to  those  dividends
 9             included  in  such  total  that  were  paid   by   a
10             corporation  that  conducts business operations in a
11             federally designated Foreign Trade Zone or  Sub-Zone
12             and  that  is  designated  a  High  Impact  Business
13             located   in   Illinois;   provided  that  dividends
14             eligible for the deduction provided in  subparagraph
15             (J) of paragraph (2) of this subsection shall not be
16             eligible  for  the  deduction  provided  under  this
17             subparagraph (K);
18                  (L)  For  taxable  years  ending after December
19             31, 1983, an amount equal  to  all  social  security
20             benefits  and  railroad retirement benefits included
21             in such total pursuant to Sections 72(r) and  86  of
22             the Internal Revenue Code;
23                  (M)  With   the   exception   of   any  amounts
24             subtracted under subparagraph (N), an  amount  equal
25             to  the  sum of all amounts disallowed as deductions
26             by (i)  Sections  171(a)  (2),  and  265(2)  of  the
27             Internal  Revenue  Code of 1954, as now or hereafter
28             amended, and all amounts of  expenses  allocable  to
29             interest  and   disallowed  as deductions by Section
30             265(1) of the Internal Revenue Code of 1954, as  now
31             or  hereafter  amended;  and  (ii) for taxable years
32             ending  on  or  after  August  13,  1999,   Sections
33             171(a)(2),  265,  280C,  and  832(b)(5)(B)(i) of the
34             Internal  Revenue  Code;  the  provisions  of   this
 
                            -13-     LRB093 02033 SJM 15513 a
 1             subparagraph  are  exempt  from  the  provisions  of
 2             Section 250;
 3                  (N)  An amount equal to all amounts included in
 4             such  total  which  are exempt from taxation by this
 5             State  either  by  reason   of   its   statutes   or
 6             Constitution  or  by  reason  of  the  Constitution,
 7             treaties  or statutes of the United States; provided
 8             that, in the case of any statute of this State  that
 9             exempts   income   derived   from   bonds  or  other
10             obligations from the tax imposed under this Act, the
11             amount exempted shall be the interest  net  of  bond
12             premium amortization;
13                  (O)  An  amount  equal to any contribution made
14             to a job training project  established  pursuant  to
15             the Tax Increment Allocation Redevelopment Act;
16                  (P)  An  amount  equal  to  the  amount  of the
17             deduction used to compute  the  federal  income  tax
18             credit  for  restoration of substantial amounts held
19             under claim of right for the taxable  year  pursuant
20             to  Section  1341  of  the  Internal Revenue Code of
21             1986;
22                  (Q)  An amount equal to any amounts included in
23             such  total,  received  by  the   taxpayer   as   an
24             acceleration  in  the  payment of life, endowment or
25             annuity benefits in advance of the time  they  would
26             otherwise  be payable as an indemnity for a terminal
27             illness;
28                  (R)  An amount  equal  to  the  amount  of  any
29             federal  or  State  bonus  paid  to  veterans of the
30             Persian Gulf War;
31                  (S)  An  amount,  to  the  extent  included  in
32             adjusted gross income, equal  to  the  amount  of  a
33             contribution  made  in the taxable year on behalf of
34             the taxpayer  to  a  medical  care  savings  account
 
                            -14-     LRB093 02033 SJM 15513 a
 1             established  under  the Medical Care Savings Account
 2             Act or the Medical Care Savings Account Act of  2000
 3             to  the  extent  the contribution is accepted by the
 4             account administrator as provided in that Act;
 5                  (T)  An  amount,  to  the  extent  included  in
 6             adjusted  gross  income,  equal  to  the  amount  of
 7             interest earned in the taxable  year  on  a  medical
 8             care  savings  account established under the Medical
 9             Care Savings Account Act or the Medical Care Savings
10             Account Act of 2000 on behalf of the taxpayer, other
11             than interest added pursuant to item (D-5)  of  this
12             paragraph (2);
13                  (U)  For one taxable year beginning on or after
14             January 1, 1994, an amount equal to the total amount
15             of  tax  imposed  and paid under subsections (a) and
16             (b) of Section 201 of  this  Act  on  grant  amounts
17             received  by  the  taxpayer  under  the Nursing Home
18             Grant Assistance Act during the  taxpayer's  taxable
19             years 1992 and 1993;
20                  (V)  Beginning  with  tax  years  ending  on or
21             after December 31, 1995 and ending  with  tax  years
22             ending  on  or  before  December 31, 2004, an amount
23             equal to the amount paid by  a  taxpayer  who  is  a
24             self-employed  taxpayer, a partner of a partnership,
25             or a shareholder in a Subchapter S  corporation  for
26             health  insurance  or  long-term  care insurance for
27             that  taxpayer  or   that   taxpayer's   spouse   or
28             dependents,  to  the extent that the amount paid for
29             that health insurance or  long-term  care  insurance
30             may  be  deducted  under Section 213 of the Internal
31             Revenue Code of 1986, has not been deducted  on  the
32             federal  income tax return of the taxpayer, and does
33             not exceed the taxable income attributable  to  that
34             taxpayer's   income,   self-employment   income,  or
 
                            -15-     LRB093 02033 SJM 15513 a
 1             Subchapter S  corporation  income;  except  that  no
 2             deduction  shall  be  allowed under this item (V) if
 3             the taxpayer  is  eligible  to  participate  in  any
 4             health insurance or long-term care insurance plan of
 5             an  employer  of  the  taxpayer  or  the  taxpayer's
 6             spouse.   The  amount  of  the  health insurance and
 7             long-term care insurance subtracted under this  item
 8             (V)  shall be determined by multiplying total health
 9             insurance and long-term care insurance premiums paid
10             by the taxpayer times a number that  represents  the
11             fractional  percentage  of eligible medical expenses
12             under Section 213 of the Internal  Revenue  Code  of
13             1986 not actually deducted on the taxpayer's federal
14             income tax return;
15                  (W)  For  taxable  years  beginning on or after
16             January  1,  1998,  all  amounts  included  in   the
17             taxpayer's  federal gross income in the taxable year
18             from amounts converted from a regular IRA to a  Roth
19             IRA. This paragraph is exempt from the provisions of
20             Section 250;
21                  (X)  For  taxable  year 1999 and thereafter, an
22             amount equal to the amount of any (i) distributions,
23             to the extent includible in gross income for federal
24             income tax purposes, made to the taxpayer because of
25             his or her status as a  victim  of  persecution  for
26             racial  or  religious reasons by Nazi Germany or any
27             other Axis regime or as an heir of  the  victim  and
28             (ii)  items  of  income, to the extent includible in
29             gross  income  for  federal  income  tax   purposes,
30             attributable  to, derived from or in any way related
31             to assets stolen from,  hidden  from,  or  otherwise
32             lost  to  a  victim  of  persecution  for  racial or
33             religious reasons by Nazi Germany or any other  Axis
34             regime immediately prior to, during, and immediately
 
                            -16-     LRB093 02033 SJM 15513 a
 1             after  World  War II, including, but not limited to,
 2             interest on the  proceeds  receivable  as  insurance
 3             under policies issued to a victim of persecution for
 4             racial  or  religious reasons by Nazi Germany or any
 5             other Axis regime by  European  insurance  companies
 6             immediately  prior  to  and  during  World  War  II;
 7             provided,  however,  this  subtraction  from federal
 8             adjusted gross  income  does  not  apply  to  assets
 9             acquired  with such assets or with the proceeds from
10             the sale of such  assets;  provided,  further,  this
11             paragraph shall only apply to a taxpayer who was the
12             first  recipient of such assets after their recovery
13             and who is a victim of  persecution  for  racial  or
14             religious  reasons by Nazi Germany or any other Axis
15             regime or as an heir of the victim.  The  amount  of
16             and  the  eligibility  for  any  public  assistance,
17             benefit,  or  similar entitlement is not affected by
18             the  inclusion  of  items  (i)  and  (ii)  of   this
19             paragraph  in  gross  income  for federal income tax
20             purposes.  This  paragraph  is   exempt   from   the
21             provisions of Section 250;
22                  (Y)  For  taxable  years  beginning on or after
23             January 1, 2002 and ending on or before December 31,
24             2002, moneys contributed in the taxable  year  to  a
25             College  Savings  Pool account under Section 16.5 of
26             the  State  Treasurer  Act,  except   that   amounts
27             excluded    from    gross   income   under   Section
28             529(c)(3)(C)(i) of the Internal Revenue  Code  shall
29             not  be  considered  moneys  contributed  under this
30             subparagraph (Y). For taxable years beginning on  or
31             after   January   1,  2003,  a  maximum  of  $10,000
32             contributed in the taxable year  to  (i)  a  College
33             Savings Pool account under Section 16.5 of the State
34             Treasurer  Act  or (ii) the Illinois Prepaid Tuition
 
                            -17-     LRB093 02033 SJM 15513 a
 1             Trust Fund, except that amounts excluded from  gross
 2             income under Section 529(c)(3)(C)(i) of the Internal
 3             Revenue   Code   shall   not  be  considered  moneys
 4             contributed  under  this  subparagraph   (Y).   This
 5             subparagraph  (Y)  is  exempt from the provisions of
 6             Section 250;
 7                  (Z)  For taxable years 2001 and thereafter, for
 8             the taxable year in  which  the  bonus  depreciation
 9             deduction   (30%   of  the  adjusted  basis  of  the
10             qualified  property)  is  taken  on  the  taxpayer's
11             federal income tax return under  subsection  (k)  of
12             Section  168  of  the  Internal Revenue Code and for
13             each applicable taxable year thereafter,  an  amount
14             equal to "x", where:
15                       (1)  "y"   equals   the   amount   of  the
16                  depreciation deduction taken  for  the  taxable
17                  year  on  the  taxpayer's  federal  income  tax
18                  return   on   property   for  which  the  bonus
19                  depreciation deduction  (30%  of  the  adjusted
20                  basis  of  the qualified property) was taken in
21                  any year under subsection (k) of Section 168 of
22                  the Internal Revenue Code,  but  not  including
23                  the bonus depreciation deduction; and
24                       (2)  "x"  equals  "y" multiplied by 30 and
25                  then  divided  by  70  (or  "y"  multiplied  by
26                  0.429).
27                  The  aggregate  amount  deducted   under   this
28             subparagraph  in all taxable years for any one piece
29             of property may not exceed the amount of  the  bonus
30             depreciation deduction (30% of the adjusted basis of
31             the  qualified  property)  taken on that property on
32             the  taxpayer's  federal  income  tax  return  under
33             subsection  (k)  of  Section  168  of  the  Internal
34             Revenue Code; and
 
                            -18-     LRB093 02033 SJM 15513 a
 1                  (AA)  If the taxpayer reports a capital gain or
 2             loss on the taxpayer's federal income tax return for
 3             the taxable year based on  a  sale  or  transfer  of
 4             property  for which the taxpayer was required in any
 5             taxable year to make an addition modification  under
 6             subparagraph  (D-15),  then  an amount equal to that
 7             addition modification.
 8                  The taxpayer is allowed to take  the  deduction
 9             under  this  subparagraph  only once with respect to
10             any one piece of property; and
11                  (BB) (Z)  Any amount included in adjusted gross
12             income, other than salary, received by a driver in a
13             ridesharing arrangement using a motor vehicle.

14        (b)  Corporations.
15             (1)  In general.  In the case of a corporation, base
16        income means an amount equal to  the  taxpayer's  taxable
17        income for the taxable year as modified by paragraph (2).
18             (2)  Modifications.   The taxable income referred to
19        in paragraph (1) shall be modified by adding thereto  the
20        sum of the following amounts:
21                  (A)  An  amount  equal  to  all amounts paid or
22             accrued  to  the  taxpayer  as  interest   and   all
23             distributions  received  from  regulated  investment
24             companies  during  the  taxable  year  to the extent
25             excluded from gross income  in  the  computation  of
26             taxable income;
27                  (B)  An  amount  equal  to  the  amount  of tax
28             imposed by this Act  to  the  extent  deducted  from
29             gross  income  in  the computation of taxable income
30             for the taxable year;
31                  (C)  In the  case  of  a  regulated  investment
32             company,  an  amount  equal to the excess of (i) the
33             net long-term capital gain  for  the  taxable  year,
34             over  (ii)  the amount of the capital gain dividends
 
                            -19-     LRB093 02033 SJM 15513 a
 1             designated  as  such  in  accordance  with   Section
 2             852(b)(3)(C)  of  the  Internal Revenue Code and any
 3             amount designated under Section 852(b)(3)(D) of  the
 4             Internal  Revenue  Code, attributable to the taxable
 5             year (this amendatory Act of 1995 (Public Act 89-89)
 6             is declarative of existing law  and  is  not  a  new
 7             enactment);
 8                  (D)  The  amount  of  any  net  operating  loss
 9             deduction taken in arriving at taxable income, other
10             than  a  net  operating  loss carried forward from a
11             taxable year ending prior to December 31, 1986;
12                  (E)  For taxable years in which a net operating
13             loss carryback or carryforward from a  taxable  year
14             ending  prior  to December 31, 1986 is an element of
15             taxable income under paragraph (1) of subsection (e)
16             or subparagraph (E) of paragraph (2)  of  subsection
17             (e),  the  amount  by  which  addition modifications
18             other than those provided by this  subparagraph  (E)
19             exceeded  subtraction  modifications in such earlier
20             taxable year, with the following limitations applied
21             in the order that they are listed:
22                       (i)  the addition modification relating to
23                  the net operating loss carried back or  forward
24                  to  the  taxable  year  from  any  taxable year
25                  ending prior to  December  31,  1986  shall  be
26                  reduced  by the amount of addition modification
27                  under this subparagraph (E)  which  related  to
28                  that  net  operating  loss  and which was taken
29                  into account in calculating the base income  of
30                  an earlier taxable year, and
31                       (ii)  the  addition  modification relating
32                  to the  net  operating  loss  carried  back  or
33                  forward  to  the  taxable year from any taxable
34                  year ending prior to December  31,  1986  shall
 
                            -20-     LRB093 02033 SJM 15513 a
 1                  not  exceed  the  amount  of  such carryback or
 2                  carryforward;
 3                  For taxable years  in  which  there  is  a  net
 4             operating  loss  carryback or carryforward from more
 5             than one other taxable year ending prior to December
 6             31, 1986, the addition modification provided in this
 7             subparagraph (E) shall be the  sum  of  the  amounts
 8             computed    independently    under   the   preceding
 9             provisions of this subparagraph (E)  for  each  such
10             taxable year;
11                  (E-5)  For  taxable years ending after December
12             31,  1997,  an  amount   equal   to   any   eligible
13             remediation  costs  that the corporation deducted in
14             computing adjusted gross income and  for  which  the
15             corporation  claims a credit under subsection (l) of
16             Section 201;
17                  (E-10)  For taxable years 2001 and  thereafter,
18             an  amount equal to the bonus depreciation deduction
19             (30%  of  the  adjusted  basis  of   the   qualified
20             property) taken on the taxpayer's federal income tax
21             return  for the taxable year under subsection (k) of
22             Section 168 of the Internal Revenue Code; and
23                  (E-11)  If the taxpayer reports a capital  gain
24             or  loss on the taxpayer's federal income tax return
25             for the taxable year based on a sale or transfer  of
26             property  for which the taxpayer was required in any
27             taxable year to make an addition modification  under
28             subparagraph  (E-10),  then  an  amount equal to the
29             aggregate amount of  the  deductions  taken  in  all
30             taxable years under subparagraph (T) with respect to
31             that property.;
32                  The  taxpayer  is required to make the addition
33             modification under this subparagraph only once  with
34             respect to any one piece of property;
 
                            -21-     LRB093 02033 SJM 15513 a
 1        and  by  deducting  from the total so obtained the sum of
 2        the following amounts:
 3                  (F)  An amount equal to the amount of  any  tax
 4             imposed  by  this  Act  which  was  refunded  to the
 5             taxpayer and included in such total for the  taxable
 6             year;
 7                  (G)  An  amount equal to any amount included in
 8             such total under Section 78 of the Internal  Revenue
 9             Code;
10                  (H)  In  the  case  of  a  regulated investment
11             company, an amount equal to  the  amount  of  exempt
12             interest  dividends as defined in subsection (b) (5)
13             of Section 852 of the Internal Revenue Code, paid to
14             shareholders for the taxable year;
15                  (I)  With  the   exception   of   any   amounts
16             subtracted  under  subparagraph (J), an amount equal
17             to the sum of all amounts disallowed  as  deductions
18             by  (i)  Sections  171(a)  (2),  and  265(a)(2)  and
19             amounts  disallowed  as  interest expense by Section
20             291(a)(3) of the Internal Revenue Code,  as  now  or
21             hereafter  amended,  and  all  amounts  of  expenses
22             allocable  to  interest and disallowed as deductions
23             by Section 265(a)(1) of the Internal  Revenue  Code,
24             as  now  or  hereafter amended; and (ii) for taxable
25             years ending on or after August 13,  1999,  Sections
26             171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
27             of the Internal Revenue Code; the provisions of this
28             subparagraph  are  exempt  from  the  provisions  of
29             Section 250;
30                  (J)  An amount equal to all amounts included in
31             such  total  which  are exempt from taxation by this
32             State  either  by  reason   of   its   statutes   or
33             Constitution  or  by  reason  of  the  Constitution,
34             treaties  or statutes of the United States; provided
 
                            -22-     LRB093 02033 SJM 15513 a
 1             that, in the case of any statute of this State  that
 2             exempts   income   derived   from   bonds  or  other
 3             obligations from the tax imposed under this Act, the
 4             amount exempted shall be the interest  net  of  bond
 5             premium amortization;
 6                  (K)  An   amount   equal   to  those  dividends
 7             included  in  such  total  which  were  paid  by   a
 8             corporation which conducts business operations in an
 9             Enterprise  Zone or zones created under the Illinois
10             Enterprise Zone Act and conducts  substantially  all
11             of its operations in an Enterprise Zone or zones;
12                  (L)  An   amount   equal   to  those  dividends
13             included  in  such  total  that  were  paid   by   a
14             corporation  that  conducts business operations in a
15             federally designated Foreign Trade Zone or  Sub-Zone
16             and  that  is  designated  a  High  Impact  Business
17             located   in   Illinois;   provided  that  dividends
18             eligible for the deduction provided in  subparagraph
19             (K)  of  paragraph 2 of this subsection shall not be
20             eligible  for  the  deduction  provided  under  this
21             subparagraph (L);
22                  (M)  For  any  taxpayer  that  is  a  financial
23             organization within the meaning of Section 304(c) of
24             this Act,  an  amount  included  in  such  total  as
25             interest  income  from  a loan or loans made by such
26             taxpayer to a borrower, to the extent  that  such  a
27             loan  is  secured  by property which is eligible for
28             the Enterprise Zone Investment Credit.  To determine
29             the portion of a loan or loans that  is  secured  by
30             property  eligible  for  a Section 201(f) investment
31             credit to the borrower, the entire principal  amount
32             of  the  loan  or loans between the taxpayer and the
33             borrower should be divided into  the  basis  of  the
34             Section  201(f)  investment  credit  property  which
 
                            -23-     LRB093 02033 SJM 15513 a
 1             secures  the  loan  or loans, using for this purpose
 2             the original basis of such property on the date that
 3             it was placed in service  in  the  Enterprise  Zone.
 4             The  subtraction  modification available to taxpayer
 5             in any year under  this  subsection  shall  be  that
 6             portion  of  the total interest paid by the borrower
 7             with  respect  to  such  loan  attributable  to  the
 8             eligible property as calculated under  the  previous
 9             sentence;
10                  (M-1)  For  any  taxpayer  that  is a financial
11             organization within the meaning of Section 304(c) of
12             this Act,  an  amount  included  in  such  total  as
13             interest  income  from  a loan or loans made by such
14             taxpayer to a borrower, to the extent  that  such  a
15             loan  is  secured  by property which is eligible for
16             the High  Impact  Business  Investment  Credit.   To
17             determine  the  portion  of  a loan or loans that is
18             secured by property eligible for  a  Section  201(h)
19             investment   credit  to  the  borrower,  the  entire
20             principal amount of the loan or  loans  between  the
21             taxpayer and the borrower should be divided into the
22             basis   of  the  Section  201(h)  investment  credit
23             property which secures the loan or loans, using  for
24             this  purpose the original basis of such property on
25             the  date  that  it  was  placed  in  service  in  a
26             federally designated Foreign Trade Zone or  Sub-Zone
27             located  in  Illinois.  No taxpayer that is eligible
28             for the deduction provided in  subparagraph  (M)  of
29             paragraph  (2)  of this subsection shall be eligible
30             for the deduction provided under  this  subparagraph
31             (M-1).   The  subtraction  modification available to
32             taxpayers in any year under this subsection shall be
33             that portion of  the  total  interest  paid  by  the
34             borrower  with  respect to such loan attributable to
 
                            -24-     LRB093 02033 SJM 15513 a
 1             the  eligible  property  as  calculated  under   the
 2             previous sentence;
 3                  (N)  Two times any contribution made during the
 4             taxable  year  to  a designated zone organization to
 5             the extent that the contribution (i) qualifies as  a
 6             charitable  contribution  under  subsection  (c)  of
 7             Section  170  of  the Internal Revenue Code and (ii)
 8             must, by its terms, be used for a  project  approved
 9             by  the Department of Commerce and Community Affairs
10             under Section 11 of  the  Illinois  Enterprise  Zone
11             Act;
12                  (O)  An  amount  equal  to: (i) 85% for taxable
13             years ending on or before December 31, 1992,  or,  a
14             percentage  equal  to the percentage allowable under
15             Section 243(a)(1) of the Internal  Revenue  Code  of
16             1986  for  taxable  years  ending after December 31,
17             1992, of the amount by which dividends  included  in
18             taxable  income and received from a corporation that
19             is not created or organized under the  laws  of  the
20             United  States or any state or political subdivision
21             thereof, including, for taxable years ending  on  or
22             after  December  31,  1988,  dividends  received  or
23             deemed   received  or  paid  or  deemed  paid  under
24             Sections 951 through 964  of  the  Internal  Revenue
25             Code, exceed the amount of the modification provided
26             under  subparagraph  (G)  of  paragraph  (2) of this
27             subsection (b) which is related to  such  dividends;
28             plus  (ii)  100%  of  the amount by which dividends,
29             included in taxable income and received,  including,
30             for  taxable  years  ending on or after December 31,
31             1988, dividends received or deemed received or  paid
32             or deemed paid under Sections 951 through 964 of the
33             Internal  Revenue  Code,  from  any such corporation
34             specified in clause  (i)  that  would  but  for  the
 
                            -25-     LRB093 02033 SJM 15513 a
 1             provisions  of  Section 1504 (b) (3) of the Internal
 2             Revenue  Code  be  treated  as  a  member   of   the
 3             affiliated   group   which   includes  the  dividend
 4             recipient, exceed the  amount  of  the  modification
 5             provided  under subparagraph (G) of paragraph (2) of
 6             this  subsection  (b)  which  is  related  to   such
 7             dividends;
 8                  (P)  An  amount  equal to any contribution made
 9             to a job training project  established  pursuant  to
10             the Tax Increment Allocation Redevelopment Act;
11                  (Q)  An  amount  equal  to  the  amount  of the
12             deduction used to compute  the  federal  income  tax
13             credit  for  restoration of substantial amounts held
14             under claim of right for the taxable  year  pursuant
15             to  Section  1341  of  the  Internal Revenue Code of
16             1986;
17                  (R)  In the case of  an  attorney-in-fact  with
18             respect  to  whom  an  interinsurer  or a reciprocal
19             insurer has made the election under Section  835  of
20             the  Internal Revenue Code, 26 U.S.C. 835, an amount
21             equal to the excess, if any, of the amounts paid  or
22             incurred  by that interinsurer or reciprocal insurer
23             in the taxable year to the attorney-in-fact over the
24             deduction allowed to that interinsurer or reciprocal
25             insurer with respect to the  attorney-in-fact  under
26             Section  835(b) of the Internal Revenue Code for the
27             taxable year;
28                  (S)  For  taxable  years  ending  on  or  after
29             December 31, 1997, in the case  of  a  Subchapter  S
30             corporation,  an  amount  equal  to  all  amounts of
31             income allocable to a  shareholder  subject  to  the
32             Personal Property Tax Replacement Income Tax imposed
33             by  subsections  (c)  and (d) of Section 201 of this
34             Act, including amounts  allocable  to  organizations
 
                            -26-     LRB093 02033 SJM 15513 a
 1             exempt  from federal income tax by reason of Section
 2             501(a)  of  the   Internal   Revenue   Code.    This
 3             subparagraph  (S)  is  exempt from the provisions of
 4             Section 250;
 5                  (T)  For taxable years 2001 and thereafter, for
 6             the taxable year in  which  the  bonus  depreciation
 7             deduction   (30%   of  the  adjusted  basis  of  the
 8             qualified  property)  is  taken  on  the  taxpayer's
 9             federal income tax return under  subsection  (k)  of
10             Section  168  of  the  Internal Revenue Code and for
11             each applicable taxable year thereafter,  an  amount
12             equal to "x", where:
13                       (1)  "y"   equals   the   amount   of  the
14                  depreciation deduction taken  for  the  taxable
15                  year  on  the  taxpayer's  federal  income  tax
16                  return   on   property   for  which  the  bonus
17                  depreciation deduction  (30%  of  the  adjusted
18                  basis  of  the qualified property) was taken in
19                  any year under subsection (k) of Section 168 of
20                  the Internal Revenue Code,  but  not  including
21                  the bonus depreciation deduction; and
22                       (2)  "x"  equals  "y" multiplied by 30 and
23                  then  divided  by  70  (or  "y"  multiplied  by
24                  0.429).
25                  The  aggregate  amount  deducted   under   this
26             subparagraph  in all taxable years for any one piece
27             of property may not exceed the amount of  the  bonus
28             depreciation deduction (30% of the adjusted basis of
29             the  qualified  property)  taken on that property on
30             the  taxpayer's  federal  income  tax  return  under
31             subsection  (k)  of  Section  168  of  the  Internal
32             Revenue Code; and
33                  (U)  If the taxpayer reports a capital gain  or
34             loss on the taxpayer's federal income tax return for
 
                            -27-     LRB093 02033 SJM 15513 a
 1             the  taxable  year  based  on  a sale or transfer of
 2             property for which the taxpayer was required in  any
 3             taxable  year to make an addition modification under
 4             subparagraph (E-10), then an amount  equal  to  that
 5             addition modification.
 6                  The  taxpayer  is allowed to take the deduction
 7             under this subparagraph only once  with  respect  to
 8             any one piece of property.
 9             (3)  Special  rule.   For  purposes of paragraph (2)
10        (A), "gross income" in  the  case  of  a  life  insurance
11        company,  for  tax years ending on and after December 31,
12        1994, shall mean the  gross  investment  income  for  the
13        taxable year.

14        (c)  Trusts and estates.
15             (1)  In  general.  In the case of a trust or estate,
16        base income means  an  amount  equal  to  the  taxpayer's
17        taxable  income  for  the  taxable  year  as  modified by
18        paragraph (2).
19             (2)  Modifications.  Subject to  the  provisions  of
20        paragraph   (3),   the  taxable  income  referred  to  in
21        paragraph (1) shall be modified by adding thereto the sum
22        of the following amounts:
23                  (A)  An amount equal to  all  amounts  paid  or
24             accrued  to  the  taxpayer  as interest or dividends
25             during the taxable year to the extent excluded  from
26             gross income in the computation of taxable income;
27                  (B)  In the case of (i) an estate, $600; (ii) a
28             trust  which,  under  its  governing  instrument, is
29             required to distribute all of its income  currently,
30             $300;  and  (iii) any other trust, $100, but in each
31             such case,  only  to  the  extent  such  amount  was
32             deducted in the computation of taxable income;
33                  (C)  An  amount  equal  to  the  amount  of tax
34             imposed by this Act  to  the  extent  deducted  from
 
                            -28-     LRB093 02033 SJM 15513 a
 1             gross  income  in  the computation of taxable income
 2             for the taxable year;
 3                  (D)  The  amount  of  any  net  operating  loss
 4             deduction taken in arriving at taxable income, other
 5             than a net operating loss  carried  forward  from  a
 6             taxable year ending prior to December 31, 1986;
 7                  (E)  For taxable years in which a net operating
 8             loss  carryback  or carryforward from a taxable year
 9             ending prior to December 31, 1986 is an  element  of
10             taxable income under paragraph (1) of subsection (e)
11             or  subparagraph  (E) of paragraph (2) of subsection
12             (e), the  amount  by  which  addition  modifications
13             other  than  those provided by this subparagraph (E)
14             exceeded subtraction modifications in  such  taxable
15             year,  with the following limitations applied in the
16             order that they are listed:
17                       (i)  the addition modification relating to
18                  the net operating loss carried back or  forward
19                  to  the  taxable  year  from  any  taxable year
20                  ending prior to  December  31,  1986  shall  be
21                  reduced  by the amount of addition modification
22                  under this subparagraph (E)  which  related  to
23                  that  net  operating  loss  and which was taken
24                  into account in calculating the base income  of
25                  an earlier taxable year, and
26                       (ii)  the  addition  modification relating
27                  to the  net  operating  loss  carried  back  or
28                  forward  to  the  taxable year from any taxable
29                  year ending prior to December  31,  1986  shall
30                  not  exceed  the  amount  of  such carryback or
31                  carryforward;
32                  For taxable years  in  which  there  is  a  net
33             operating  loss  carryback or carryforward from more
34             than one other taxable year ending prior to December
 
                            -29-     LRB093 02033 SJM 15513 a
 1             31, 1986, the addition modification provided in this
 2             subparagraph (E) shall be the  sum  of  the  amounts
 3             computed    independently    under   the   preceding
 4             provisions of this subparagraph (E)  for  each  such
 5             taxable year;
 6                  (F)  For  taxable  years  ending  on  or  after
 7             January 1, 1989, an amount equal to the tax deducted
 8             pursuant to Section 164 of the Internal Revenue Code
 9             if  the trust or estate is claiming the same tax for
10             purposes of the Illinois foreign  tax  credit  under
11             Section 601 of this Act;
12                  (G)  An  amount  equal  to  the  amount  of the
13             capital gain deduction allowable under the  Internal
14             Revenue  Code,  to  the  extent  deducted from gross
15             income in the computation of taxable income;
16                  (G-5)  For taxable years ending after  December
17             31,   1997,   an   amount   equal  to  any  eligible
18             remediation costs that the trust or estate  deducted
19             in computing adjusted gross income and for which the
20             trust or estate claims a credit under subsection (l)
21             of Section 201;
22                  (G-10)  For  taxable years 2001 and thereafter,
23             an amount equal to the bonus depreciation  deduction
24             (30%   of   the  adjusted  basis  of  the  qualified
25             property) taken on the taxpayer's federal income tax
26             return for the taxable year under subsection (k)  of
27             Section 168 of the Internal Revenue Code; and
28                  (G-11)  If  the taxpayer reports a capital gain
29             or loss on the taxpayer's federal income tax  return
30             for  the taxable year based on a sale or transfer of
31             property for which the taxpayer was required in  any
32             taxable  year to make an addition modification under
33             subparagraph (G-10), then an  amount  equal  to  the
34             aggregate  amount  of  the  deductions  taken in all
 
                            -30-     LRB093 02033 SJM 15513 a
 1             taxable years under subparagraph (R) with respect to
 2             that property.;
 3                  The taxpayer is required to make  the  addition
 4             modification  under this subparagraph only once with
 5             respect to any one piece of property;
 6        and by deducting from the total so obtained  the  sum  of
 7        the following amounts:
 8                  (H)  An amount equal to all amounts included in
 9             such  total  pursuant  to the provisions of Sections
10             402(a), 402(c), 403(a), 403(b), 406(a),  407(a)  and
11             408 of the Internal Revenue Code or included in such
12             total  as  distributions under the provisions of any
13             retirement or disability plan for employees  of  any
14             governmental  agency or unit, or retirement payments
15             to retired partners, which payments are excluded  in
16             computing  net  earnings  from  self  employment  by
17             Section  1402  of  the  Internal  Revenue  Code  and
18             regulations adopted pursuant thereto;
19                  (I)  The valuation limitation amount;
20                  (J)  An  amount  equal to the amount of any tax
21             imposed by  this  Act  which  was  refunded  to  the
22             taxpayer  and included in such total for the taxable
23             year;
24                  (K)  An amount equal to all amounts included in
25             taxable income as  modified  by  subparagraphs  (A),
26             (B),  (C),  (D),  (E),  (F) and (G) which are exempt
27             from taxation by this State either by reason of  its
28             statutes   or  Constitution  or  by  reason  of  the
29             Constitution, treaties or  statutes  of  the  United
30             States; provided that, in the case of any statute of
31             this State that exempts income derived from bonds or
32             other  obligations  from  the tax imposed under this
33             Act, the amount exempted shall be the  interest  net
34             of bond premium amortization;
 
                            -31-     LRB093 02033 SJM 15513 a
 1                  (L)  With   the   exception   of   any  amounts
 2             subtracted under subparagraph (K), an  amount  equal
 3             to  the  sum of all amounts disallowed as deductions
 4             by (i) Sections 171(a)  (2)  and  265(a)(2)  of  the
 5             Internal  Revenue Code, as now or hereafter amended,
 6             and all amounts of expenses  allocable  to  interest
 7             and  disallowed  as  deductions by Section 265(1) of
 8             the  Internal  Revenue  Code  of  1954,  as  now  or
 9             hereafter amended; and (ii) for taxable years ending
10             on or after August  13,  1999,  Sections  171(a)(2),
11             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
12             Revenue  Code;  the  provisions of this subparagraph
13             are exempt from the provisions of Section 250;
14                  (M)  An  amount  equal   to   those   dividends
15             included   in  such  total  which  were  paid  by  a
16             corporation which conducts business operations in an
17             Enterprise Zone or zones created under the  Illinois
18             Enterprise  Zone  Act and conducts substantially all
19             of its operations in an Enterprise Zone or Zones;
20                  (N)  An amount equal to any  contribution  made
21             to  a  job  training project established pursuant to
22             the Tax Increment Allocation Redevelopment Act;
23                  (O)  An  amount  equal   to   those   dividends
24             included   in   such  total  that  were  paid  by  a
25             corporation that conducts business operations  in  a
26             federally  designated Foreign Trade Zone or Sub-Zone
27             and  that  is  designated  a  High  Impact  Business
28             located  in  Illinois;   provided   that   dividends
29             eligible  for the deduction provided in subparagraph
30             (M) of paragraph (2) of this subsection shall not be
31             eligible  for  the  deduction  provided  under  this
32             subparagraph (O);
33                  (P)  An amount  equal  to  the  amount  of  the
34             deduction  used  to  compute  the federal income tax
 
                            -32-     LRB093 02033 SJM 15513 a
 1             credit for restoration of substantial  amounts  held
 2             under  claim  of right for the taxable year pursuant
 3             to Section 1341 of  the  Internal  Revenue  Code  of
 4             1986;
 5                  (Q)  For  taxable  year 1999 and thereafter, an
 6             amount equal to the amount of any (i) distributions,
 7             to the extent includible in gross income for federal
 8             income tax purposes, made to the taxpayer because of
 9             his or her status as a  victim  of  persecution  for
10             racial  or  religious reasons by Nazi Germany or any
11             other Axis regime or as an heir of  the  victim  and
12             (ii)  items  of  income, to the extent includible in
13             gross  income  for  federal  income  tax   purposes,
14             attributable  to, derived from or in any way related
15             to assets stolen from,  hidden  from,  or  otherwise
16             lost  to  a  victim  of  persecution  for  racial or
17             religious reasons by Nazi Germany or any other  Axis
18             regime immediately prior to, during, and immediately
19             after  World  War II, including, but not limited to,
20             interest on the  proceeds  receivable  as  insurance
21             under policies issued to a victim of persecution for
22             racial  or  religious reasons by Nazi Germany or any
23             other Axis regime by  European  insurance  companies
24             immediately  prior  to  and  during  World  War  II;
25             provided,  however,  this  subtraction  from federal
26             adjusted gross  income  does  not  apply  to  assets
27             acquired  with such assets or with the proceeds from
28             the sale of such  assets;  provided,  further,  this
29             paragraph shall only apply to a taxpayer who was the
30             first  recipient of such assets after their recovery
31             and who is a victim of  persecution  for  racial  or
32             religious  reasons by Nazi Germany or any other Axis
33             regime or as an heir of the victim.  The  amount  of
34             and  the  eligibility  for  any  public  assistance,
 
                            -33-     LRB093 02033 SJM 15513 a
 1             benefit,  or  similar entitlement is not affected by
 2             the  inclusion  of  items  (i)  and  (ii)  of   this
 3             paragraph  in  gross  income  for federal income tax
 4             purposes.  This  paragraph  is   exempt   from   the
 5             provisions of Section 250;
 6                  (R)  For taxable years 2001 and thereafter, for
 7             the  taxable  year  in  which the bonus depreciation
 8             deduction  (30%  of  the  adjusted  basis   of   the
 9             qualified  property)  is  taken  on  the  taxpayer's
10             federal  income  tax  return under subsection (k) of
11             Section 168 of the Internal  Revenue  Code  and  for
12             each  applicable  taxable year thereafter, an amount
13             equal to "x", where:
14                       (1)  "y"  equals   the   amount   of   the
15                  depreciation  deduction  taken  for the taxable
16                  year  on  the  taxpayer's  federal  income  tax
17                  return  on  property  for   which   the   bonus
18                  depreciation  deduction  (30%  of  the adjusted
19                  basis of the qualified property) was  taken  in
20                  any year under subsection (k) of Section 168 of
21                  the  Internal  Revenue  Code, but not including
22                  the bonus depreciation deduction; and
23                       (2)  "x" equals "y" multiplied by  30  and
24                  then  divided  by  70  (or  "y"  multiplied  by
25                  0.429).
26                  The   aggregate   amount  deducted  under  this
27             subparagraph in all taxable years for any one  piece
28             of  property  may not exceed the amount of the bonus
29             depreciation deduction (30% of the adjusted basis of
30             the qualified property) taken on  that  property  on
31             the  taxpayer's  federal  income  tax  return  under
32             subsection  (k)  of  Section  168  of  the  Internal
33             Revenue Code; and
34                  (S)  If  the taxpayer reports a capital gain or
 
                            -34-     LRB093 02033 SJM 15513 a
 1             loss on the taxpayer's federal income tax return for
 2             the taxable year based on  a  sale  or  transfer  of
 3             property  for which the taxpayer was required in any
 4             taxable year to make an addition modification  under
 5             subparagraph  (G-10),  then  an amount equal to that
 6             addition modification.
 7                  The taxpayer is allowed to take  the  deduction
 8             under  this  subparagraph  only once with respect to
 9             any one piece of property.
10             (3)  Limitation.  The  amount  of  any  modification
11        otherwise  required  under  this  subsection shall, under
12        regulations prescribed by the Department, be adjusted  by
13        any  amounts  included  therein which were properly paid,
14        credited, or required to be distributed,  or  permanently
15        set  aside  for charitable purposes pursuant  to Internal
16        Revenue Code Section 642(c) during the taxable year.

17        (d)  Partnerships.
18             (1)  In general. In the case of a partnership,  base
19        income  means  an  amount equal to the taxpayer's taxable
20        income for the taxable year as modified by paragraph (2).
21             (2)  Modifications. The taxable income  referred  to
22        in  paragraph (1) shall be modified by adding thereto the
23        sum of the following amounts:
24                  (A)  An amount equal to  all  amounts  paid  or
25             accrued  to  the  taxpayer  as interest or dividends
26             during the taxable year to the extent excluded  from
27             gross income in the computation of taxable income;
28                  (B)  An  amount  equal  to  the  amount  of tax
29             imposed by this Act  to  the  extent  deducted  from
30             gross income for the taxable year;
31                  (C)  The  amount  of  deductions allowed to the
32             partnership pursuant  to  Section  707  (c)  of  the
33             Internal  Revenue  Code  in  calculating its taxable
34             income;
 
                            -35-     LRB093 02033 SJM 15513 a
 1                  (D)  An amount  equal  to  the  amount  of  the
 2             capital  gain deduction allowable under the Internal
 3             Revenue Code, to  the  extent  deducted  from  gross
 4             income in the computation of taxable income;
 5                  (D-5)  For  taxable  years 2001 and thereafter,
 6             an amount equal to the bonus depreciation  deduction
 7             (30%   of   the  adjusted  basis  of  the  qualified
 8             property) taken on the taxpayer's federal income tax
 9             return for the taxable year under subsection (k)  of
10             Section 168 of the Internal Revenue Code; and
11                  (D-6)  If  the  taxpayer reports a capital gain
12             or loss on the taxpayer's federal income tax  return
13             for  the taxable year based on a sale or transfer of
14             property for which the taxpayer was required in  any
15             taxable  year to make an addition modification under
16             subparagraph (D-5), then  an  amount  equal  to  the
17             aggregate  amount  of  the  deductions  taken in all
18             taxable years under subparagraph (O) with respect to
19             that property.;
20                  The taxpayer is required to make  the  addition
21             modification  under this subparagraph only once with
22             respect to any one piece of property;
23        and by deducting from the total so obtained the following
24        amounts:
25                  (E)  The valuation limitation amount;
26                  (F)  An amount equal to the amount of  any  tax
27             imposed  by  this  Act  which  was  refunded  to the
28             taxpayer and included in such total for the  taxable
29             year;
30                  (G)  An amount equal to all amounts included in
31             taxable  income  as  modified  by subparagraphs (A),
32             (B), (C) and (D) which are exempt from  taxation  by
33             this  State  either  by  reason  of  its statutes or
34             Constitution  or  by  reason  of  the  Constitution,
 
                            -36-     LRB093 02033 SJM 15513 a
 1             treaties or statutes of the United States;  provided
 2             that,  in the case of any statute of this State that
 3             exempts  income  derived   from   bonds   or   other
 4             obligations from the tax imposed under this Act, the
 5             amount  exempted  shall  be the interest net of bond
 6             premium amortization;
 7                  (H)  Any  income  of  the   partnership   which
 8             constitutes  personal  service  income as defined in
 9             Section 1348 (b) (1) of the  Internal  Revenue  Code
10             (as  in  effect  December  31, 1981) or a reasonable
11             allowance  for  compensation  paid  or  accrued  for
12             services rendered by partners  to  the  partnership,
13             whichever is greater;
14                  (I)  An  amount  equal to all amounts of income
15             distributable to an entity subject to  the  Personal
16             Property  Tax  Replacement  Income  Tax  imposed  by
17             subsections  (c)  and (d) of Section 201 of this Act
18             including  amounts  distributable  to  organizations
19             exempt from federal income tax by reason of  Section
20             501(a) of the Internal Revenue Code;
21                  (J)  With   the   exception   of   any  amounts
22             subtracted under subparagraph (G), an  amount  equal
23             to  the  sum of all amounts disallowed as deductions
24             by (i)  Sections  171(a)  (2),  and  265(2)  of  the
25             Internal  Revenue  Code of 1954, as now or hereafter
26             amended, and all amounts of  expenses  allocable  to
27             interest  and  disallowed  as  deductions by Section
28             265(1) of the  Internal  Revenue  Code,  as  now  or
29             hereafter amended; and (ii) for taxable years ending
30             on  or  after  August  13, 1999, Sections 171(a)(2),
31             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
32             Revenue Code; the provisions  of  this  subparagraph
33             are exempt from the provisions of Section 250;
34                  (K)  An   amount   equal   to  those  dividends
 
                            -37-     LRB093 02033 SJM 15513 a
 1             included  in  such  total  which  were  paid  by   a
 2             corporation which conducts business operations in an
 3             Enterprise  Zone or zones created under the Illinois
 4             Enterprise Zone Act, enacted  by  the  82nd  General
 5             Assembly,  and  conducts  substantially  all  of its
 6             operations in an Enterprise Zone or Zones;
 7                  (L)  An amount equal to any  contribution  made
 8             to  a  job  training project established pursuant to
 9             the   Real   Property   Tax   Increment   Allocation
10             Redevelopment Act;
11                  (M)  An  amount  equal   to   those   dividends
12             included   in   such  total  that  were  paid  by  a
13             corporation that conducts business operations  in  a
14             federally  designated Foreign Trade Zone or Sub-Zone
15             and  that  is  designated  a  High  Impact  Business
16             located  in  Illinois;   provided   that   dividends
17             eligible  for the deduction provided in subparagraph
18             (K) of paragraph (2) of this subsection shall not be
19             eligible  for  the  deduction  provided  under  this
20             subparagraph (M);
21                  (N)  An amount  equal  to  the  amount  of  the
22             deduction  used  to  compute  the federal income tax
23             credit for restoration of substantial  amounts  held
24             under  claim  of right for the taxable year pursuant
25             to Section 1341 of  the  Internal  Revenue  Code  of
26             1986;
27                  (O)  For taxable years 2001 and thereafter, for
28             the  taxable  year  in  which the bonus depreciation
29             deduction  (30%  of  the  adjusted  basis   of   the
30             qualified  property)  is  taken  on  the  taxpayer's
31             federal  income  tax  return under subsection (k) of
32             Section 168 of the Internal  Revenue  Code  and  for
33             each  applicable  taxable year thereafter, an amount
34             equal to "x", where:
 
                            -38-     LRB093 02033 SJM 15513 a
 1                       (1)  "y"  equals   the   amount   of   the
 2                  depreciation  deduction  taken  for the taxable
 3                  year  on  the  taxpayer's  federal  income  tax
 4                  return  on  property  for   which   the   bonus
 5                  depreciation  deduction  (30%  of  the adjusted
 6                  basis of the qualified property) was  taken  in
 7                  any year under subsection (k) of Section 168 of
 8                  the  Internal  Revenue  Code, but not including
 9                  the bonus depreciation deduction; and
10                       (2)  "x" equals "y" multiplied by  30  and
11                  then  divided  by  70  (or  "y"  multiplied  by
12                  0.429).
13                  The   aggregate   amount  deducted  under  this
14             subparagraph in all taxable years for any one  piece
15             of  property  may not exceed the amount of the bonus
16             depreciation deduction (30% of the adjusted basis of
17             the qualified property) taken on  that  property  on
18             the  taxpayer's  federal  income  tax  return  under
19             subsection  (k)  of  Section  168  of  the  Internal
20             Revenue Code; and
21                  (P)  If  the taxpayer reports a capital gain or
22             loss on the taxpayer's federal income tax return for
23             the taxable year based on  a  sale  or  transfer  of
24             property  for which the taxpayer was required in any
25             taxable year to make an addition modification  under
26             subparagraph  (D-5),  then  an  amount equal to that
27             addition modification.
28                  The taxpayer is allowed to take  the  deduction
29             under  this  subparagraph  only once with respect to
30             any one piece of property.

31        (e)  Gross income; adjusted gross income; taxable income.
32             (1)  In  general.   Subject  to  the  provisions  of
33        paragraph (2) and subsection (b)  (3),  for  purposes  of
34        this  Section  and  Section  803(e),  a  taxpayer's gross
 
                            -39-     LRB093 02033 SJM 15513 a
 1        income, adjusted gross income, or taxable income for  the
 2        taxable  year  shall  mean  the  amount  of gross income,
 3        adjusted  gross  income  or   taxable   income   properly
 4        reportable  for  federal  income  tax  purposes  for  the
 5        taxable year under the provisions of the Internal Revenue
 6        Code.  Taxable income may be less than zero. However, for
 7        taxable years ending on or after December 31,  1986,  net
 8        operating  loss  carryforwards  from taxable years ending
 9        prior to December 31, 1986, may not  exceed  the  sum  of
10        federal  taxable  income  for the taxable year before net
11        operating loss deduction, plus  the  excess  of  addition
12        modifications  over  subtraction  modifications  for  the
13        taxable year.  For taxable years ending prior to December
14        31, 1986, taxable income may never be an amount in excess
15        of the net operating loss for the taxable year as defined
16        in subsections (c) and (d) of Section 172 of the Internal
17        Revenue  Code,  provided  that  when  taxable income of a
18        corporation (other  than  a  Subchapter  S  corporation),
19        trust,   or   estate  is  less  than  zero  and  addition
20        modifications, other than those provided by  subparagraph
21        (E)  of  paragraph (2) of subsection (b) for corporations
22        or subparagraph (E) of paragraph (2)  of  subsection  (c)
23        for trusts and estates, exceed subtraction modifications,
24        an   addition  modification  must  be  made  under  those
25        subparagraphs for any other taxable  year  to  which  the
26        taxable  income  less  than  zero (net operating loss) is
27        applied under Section 172 of the Internal Revenue Code or
28        under  subparagraph  (E)  of  paragraph   (2)   of   this
29        subsection (e) applied in conjunction with Section 172 of
30        the Internal Revenue Code.
31             (2)  Special rule.  For purposes of paragraph (1) of
32        this  subsection,  the taxable income properly reportable
33        for federal income tax purposes shall mean:
34                  (A)  Certain life insurance companies.  In  the
 
                            -40-     LRB093 02033 SJM 15513 a
 1             case  of a life insurance company subject to the tax
 2             imposed by Section 801 of the Internal Revenue Code,
 3             life insurance  company  taxable  income,  plus  the
 4             amount  of  distribution  from pre-1984 policyholder
 5             surplus accounts as calculated under Section 815a of
 6             the Internal Revenue Code;
 7                  (B)  Certain other insurance companies.  In the
 8             case of mutual insurance companies  subject  to  the
 9             tax  imposed  by Section 831 of the Internal Revenue
10             Code, insurance company taxable income;
11                  (C)  Regulated investment  companies.   In  the
12             case  of  a  regulated investment company subject to
13             the tax imposed  by  Section  852  of  the  Internal
14             Revenue Code, investment company taxable income;
15                  (D)  Real  estate  investment  trusts.   In the
16             case of a real estate investment  trust  subject  to
17             the  tax  imposed  by  Section  857  of the Internal
18             Revenue Code, real estate investment  trust  taxable
19             income;
20                  (E)  Consolidated corporations.  In the case of
21             a  corporation  which  is  a member of an affiliated
22             group of corporations filing a  consolidated  income
23             tax  return  for the taxable year for federal income
24             tax purposes, taxable income determined as  if  such
25             corporation  had filed a separate return for federal
26             income tax purposes for the taxable  year  and  each
27             preceding  taxable year for which it was a member of
28             an  affiliated   group.   For   purposes   of   this
29             subparagraph, the taxpayer's separate taxable income
30             shall  be  determined as if the election provided by
31             Section 243(b) (2) of the Internal Revenue Code  had
32             been in effect for all such years;
33                  (F)  Cooperatives.     In   the   case   of   a
34             cooperative corporation or association, the  taxable
 
                            -41-     LRB093 02033 SJM 15513 a
 1             income of such organization determined in accordance
 2             with  the provisions of Section 1381 through 1388 of
 3             the Internal Revenue Code;
 4                  (G)  Subchapter S corporations.   In  the  case
 5             of:  (i)  a Subchapter S corporation for which there
 6             is in effect an election for the taxable year  under
 7             Section  1362  of  the  Internal  Revenue  Code, the
 8             taxable income of  such  corporation  determined  in
 9             accordance  with  Section  1363(b)  of  the Internal
10             Revenue Code, except that taxable income shall  take
11             into  account  those  items  which  are  required by
12             Section 1363(b)(1) of the Internal Revenue  Code  to
13             be  separately  stated;  and  (ii)  a  Subchapter  S
14             corporation  for  which there is in effect a federal
15             election  to  opt  out  of  the  provisions  of  the
16             Subchapter S Revision Act of 1982 and  have  applied
17             instead  the  prior federal Subchapter S rules as in
18             effect on July 1, 1982, the taxable income  of  such
19             corporation   determined   in  accordance  with  the
20             federal Subchapter S rules as in effect on  July  1,
21             1982; and
22                  (H)  Partnerships.     In   the   case   of   a
23             partnership, taxable income determined in accordance
24             with Section  703  of  the  Internal  Revenue  Code,
25             except  that  taxable income shall take into account
26             those items which are required by Section  703(a)(1)
27             to  be  separately  stated  but which would be taken
28             into account by an  individual  in  calculating  his
29             taxable income.

30        (f)  Valuation limitation amount.
31             (1)  In  general.   The  valuation limitation amount
32        referred to in subsections (a) (2) (G), (c) (2)  (I)  and
33        (d)(2) (E) is an amount equal to:
34                  (A)  The   sum   of   the  pre-August  1,  1969
 
                            -42-     LRB093 02033 SJM 15513 a
 1             appreciation amounts (to the  extent  consisting  of
 2             gain reportable under the provisions of Section 1245
 3             or  1250  of  the  Internal  Revenue  Code)  for all
 4             property in respect of which such gain was  reported
 5             for the taxable year; plus
 6                  (B)  The   lesser   of   (i)  the  sum  of  the
 7             pre-August 1,  1969  appreciation  amounts  (to  the
 8             extent  consisting of capital gain) for all property
 9             in respect of  which  such  gain  was  reported  for
10             federal income tax purposes for the taxable year, or
11             (ii)  the  net  capital  gain  for the taxable year,
12             reduced in either case by any amount  of  such  gain
13             included  in  the amount determined under subsection
14             (a) (2) (F) or (c) (2) (H).
15             (2)  Pre-August 1, 1969 appreciation amount.
16                  (A)  If  the  fair  market  value  of  property
17             referred   to   in   paragraph   (1)   was   readily
18             ascertainable on August 1, 1969, the  pre-August  1,
19             1969  appreciation  amount  for such property is the
20             lesser of (i) the excess of such fair  market  value
21             over the taxpayer's basis (for determining gain) for
22             such  property  on  that  date (determined under the
23             Internal Revenue Code as in effect on that date), or
24             (ii) the total  gain  realized  and  reportable  for
25             federal  income tax purposes in respect of the sale,
26             exchange or other disposition of such property.
27                  (B)  If  the  fair  market  value  of  property
28             referred  to  in  paragraph  (1)  was  not   readily
29             ascertainable  on  August 1, 1969, the pre-August 1,
30             1969 appreciation amount for such property  is  that
31             amount  which bears the same ratio to the total gain
32             reported in respect  of  the  property  for  federal
33             income  tax  purposes  for  the taxable year, as the
34             number of full calendar months in that part  of  the
 
                            -43-     LRB093 02033 SJM 15513 a
 1             taxpayer's  holding  period  for the property ending
 2             July 31, 1969 bears to the number of  full  calendar
 3             months  in  the taxpayer's entire holding period for
 4             the property.
 5                  (C)  The  Department   shall   prescribe   such
 6             regulations  as  may  be  necessary to carry out the
 7             purposes of this paragraph.

 8        (g)  Double  deductions.   Unless  specifically  provided
 9    otherwise, nothing in this Section shall permit the same item
10    to be deducted more than once.

11        (h)  Legislative intention.  Except as expressly provided
12    by  this  Section  there  shall  be   no   modifications   or
13    limitations on the amounts of income, gain, loss or deduction
14    taken  into  account  in  determining  gross income, adjusted
15    gross  income  or  taxable  income  for  federal  income  tax
16    purposes for the taxable year, or in the amount of such items
17    entering into the computation of base income and  net  income
18    under  this  Act for such taxable year, whether in respect of
19    property values as of August 1, 1969 or otherwise.
20    (Source: P.A. 91-192, eff.  7-20-99;  91-205,  eff.  7-20-99;
21    91-357,  eff.  7-29-99;  91-541,  eff.  8-13-99; 91-676, eff.
22    12-23-99; 91-845, eff. 6-22-00; 91-913, eff.  1-1-01;  92-16,
23    eff.  6-28-01;  92-244,  eff.  8-3-01;  92-439, eff. 8-17-01;
24    92-603, eff. 6-28-02;  92-626,  eff.  7-11-02;  92-651,  eff.
25    7-11-02; 92-846, eff. 8-23-02; revised 11-15-02.)

26        (110 ILCS 920/9 rep.)
27        Section  15.  The Baccalaureate Savings Act is amended by
28    repealing Section 9.

29        (110 ILCS 979/70 rep.)
30        Section 20.  The Illinois Prepaid Tuition Act is  amended
31    by repealing Section 70.
 
                            -44-     LRB093 02033 SJM 15513 a
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law, except that Sections 5, 15, and 20 take  effect
 3    on January 1, 2004.".