Full Text of HB2263 96th General Assembly
HB2263sam002 96TH GENERAL ASSEMBLY
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Sen. Don Harmon
Filed: 5/6/2010
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| AMENDMENT TO HOUSE BILL 2263
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| AMENDMENT NO. ______. Amend House Bill 2263 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Uncollected State Claims Act is amended by | 5 |
| adding Section 2.1 as follows: | 6 |
| (30 ILCS 205/2.1 new) | 7 |
| Sec. 2.1. Sale of debts certified as uncollectible. After | 8 |
| accounts have been certified by the Attorney General as | 9 |
| uncollectible pursuant to this Act, the State Comptroller may | 10 |
| sell the debts to one or more outside private vendors. Sales | 11 |
| shall be conducted under rules adopted by the State Comptroller | 12 |
| using a request for proposals procedure similar to that | 13 |
| procedure under the Illinois Procurement Code. The outside | 14 |
| private vendors shall remit to the State Comptroller the | 15 |
| purchase price for debts sold under this Section. The State | 16 |
| Comptroller shall deposit the money received under this Section |
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| into the General Revenue Fund. This Section does not apply to | 2 |
| any tax debt owing to the Department of Revenue. | 3 |
| Section 10. The Illinois State Collection Act of 1986 is | 4 |
| amended by adding Section 9 as follows: | 5 |
| (30 ILCS 210/9 new) | 6 |
| Sec. 9. Deferral and compromise of past due debt. | 7 |
| (a) In this Section, "past due debt" means any debt owed to | 8 |
| the State that has been outstanding for more than 12 months. | 9 |
| "Past due debt" does not include any debt if any of the actions | 10 |
| required under this Section would violate federal law or | 11 |
| regulation. | 12 |
| (b) State agencies may enter into a deferred payment plan | 13 |
| for the purpose of satisfying a past due debt. The deferred | 14 |
| payment plan must meet the following requirements: | 15 |
| (1) The term of the deferred payment plan may not | 16 |
| exceed 2 years. | 17 |
| (2) The first payment of the deferred payment plan must | 18 |
| be at least 10% of the total amount due. | 19 |
| (3) All subsequent monthly payments for the deferred | 20 |
| payment plan must be assessed as equal monthly principal | 21 |
| payments, together with interest. | 22 |
| (4) The deferred payment plan must include interest at | 23 |
| a rate that is the same as the interest required under the | 24 |
| State Prompt Payment Act. |
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| (5) The deferred payment plan must be approved by the | 2 |
| Secretary or Director of the State agency. | 3 |
| (c) State agencies may compromise past due debts. Any | 4 |
| action taken by a State agency to compromise a past due debt | 5 |
| must meet the following requirements: | 6 |
| (1) The amount of the compromised debt shall be no less | 7 |
| than 80% of the total of the past due debt. | 8 |
| (2) Once a past due debt has been compromised, the | 9 |
| debtor must remit to the State agency the total amount of | 10 |
| the compromised debt. However, the State agency may collect | 11 |
| the compromised debt through a payment plan not to exceed 6 | 12 |
| months. If the State agency accepts the compromised debt | 13 |
| through a payment plan, then the compromised debt shall be | 14 |
| subject to the same rate of interest as required under the | 15 |
| State Prompt Payment Act. | 16 |
| (3) Before a State agency accepts a compromised debt, | 17 |
| the amount of the compromised debt must be approved by the | 18 |
| State Comptroller. | 19 |
| (d) State agencies may sell a past due debt to one or more | 20 |
| outside private vendors. Sales shall be conducted under rules | 21 |
| adopted by the State Comptroller using a request for proposals | 22 |
| procedure similar to that procedure under the Illinois | 23 |
| Procurement Code. The outside private vendors shall remit to | 24 |
| the State Agency the purchase price for debts sold under this | 25 |
| subsection. | 26 |
| (e) The State agency shall deposit all amounts received |
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| under this Section into the General Revenue Fund. | 2 |
| (f) This Section does not apply to any tax debt owing to | 3 |
| the Department of Revenue. | 4 |
| Section 12. The Illinois Income Tax Act is amended by | 5 |
| changing Section 201 as follows: | 6 |
| (35 ILCS 5/201) (from Ch. 120, par. 2-201) | 7 |
| Sec. 201. Tax Imposed. | 8 |
| (a) In general. A tax measured by net income is hereby | 9 |
| imposed on every
individual, corporation, trust and estate for | 10 |
| each taxable year ending
after July 31, 1969 on the privilege | 11 |
| of earning or receiving income in or
as a resident of this | 12 |
| State. Such tax shall be in addition to all other
occupation or | 13 |
| privilege taxes imposed by this State or by any municipal
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| corporation or political subdivision thereof. | 15 |
| (b) Rates. The tax imposed by subsection (a) of this | 16 |
| Section shall be
determined as follows, except as adjusted by | 17 |
| subsection (d-1): | 18 |
| (1) In the case of an individual, trust or estate, for | 19 |
| taxable years
ending prior to July 1, 1989, an amount equal | 20 |
| to 2 1/2% of the taxpayer's
net income for the taxable | 21 |
| year. | 22 |
| (2) In the case of an individual, trust or estate, for | 23 |
| taxable years
beginning prior to July 1, 1989 and ending | 24 |
| after June 30, 1989, an amount
equal to the sum of (i) 2 |
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| 1/2% of the taxpayer's net income for the period
prior to | 2 |
| July 1, 1989, as calculated under Section 202.3, and (ii) | 3 |
| 3% of the
taxpayer's net income for the period after June | 4 |
| 30, 1989, as calculated
under Section 202.3. | 5 |
| (3) In the case of an individual, trust or estate, for | 6 |
| taxable years
beginning after June 30, 1989, an amount | 7 |
| equal to 3% of the taxpayer's net
income for the taxable | 8 |
| year. | 9 |
| (4) (Blank). | 10 |
| (5) (Blank). | 11 |
| (6) In the case of a corporation, for taxable years
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| ending prior to July 1, 1989, an amount equal to 4% of the
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| taxpayer's net income for the taxable year. | 14 |
| (7) In the case of a corporation, for taxable years | 15 |
| beginning prior to
July 1, 1989 and ending after June 30, | 16 |
| 1989, an amount equal to the sum of
(i) 4% of the | 17 |
| taxpayer's net income for the period prior to July 1, 1989,
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| as calculated under Section 202.3, and (ii) 4.8% of the | 19 |
| taxpayer's net
income for the period after June 30, 1989, | 20 |
| as calculated under Section
202.3. | 21 |
| (8) In the case of a corporation, for taxable years | 22 |
| beginning after
June 30, 1989, an amount equal to 4.8% of | 23 |
| the taxpayer's net income for the
taxable year. | 24 |
| (c) Personal Property Tax Replacement Income Tax.
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| Beginning on July 1, 1979 and thereafter, in addition to such | 26 |
| income
tax, there is also hereby imposed the Personal Property |
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| Tax Replacement
Income Tax measured by net income on every | 2 |
| corporation (including Subchapter
S corporations), partnership | 3 |
| and trust, for each taxable year ending after
June 30, 1979. | 4 |
| Such taxes are imposed on the privilege of earning or
receiving | 5 |
| income in or as a resident of this State. The Personal Property
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| Tax Replacement Income Tax shall be in addition to the income | 7 |
| tax imposed
by subsections (a) and (b) of this Section and in | 8 |
| addition to all other
occupation or privilege taxes imposed by | 9 |
| this State or by any municipal
corporation or political | 10 |
| subdivision thereof. | 11 |
| (d) Additional Personal Property Tax Replacement Income | 12 |
| Tax Rates.
The personal property tax replacement income tax | 13 |
| imposed by this subsection
and subsection (c) of this Section | 14 |
| in the case of a corporation, other
than a Subchapter S | 15 |
| corporation and except as adjusted by subsection (d-1),
shall | 16 |
| be an additional amount equal to
2.85% of such taxpayer's net | 17 |
| income for the taxable year, except that
beginning on January | 18 |
| 1, 1981, and thereafter, the rate of 2.85% specified
in this | 19 |
| subsection shall be reduced to 2.5%, and in the case of a
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| partnership, trust or a Subchapter S corporation shall be an | 21 |
| additional
amount equal to 1.5% of such taxpayer's net income | 22 |
| for the taxable year. | 23 |
| (d-1) Rate reduction for certain foreign insurers. In the | 24 |
| case of a
foreign insurer, as defined by Section 35A-5 of the | 25 |
| Illinois Insurance Code,
whose state or country of domicile | 26 |
| imposes on insurers domiciled in Illinois
a retaliatory tax |
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| (excluding any insurer
whose premiums from reinsurance assumed | 2 |
| are 50% or more of its total insurance
premiums as determined | 3 |
| under paragraph (2) of subsection (b) of Section 304,
except | 4 |
| that for purposes of this determination premiums from | 5 |
| reinsurance do
not include premiums from inter-affiliate | 6 |
| reinsurance arrangements),
beginning with taxable years ending | 7 |
| on or after December 31, 1999,
the sum of
the rates of tax | 8 |
| imposed by subsections (b) and (d) shall be reduced (but not
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| increased) to the rate at which the total amount of tax imposed | 10 |
| under this Act,
net of all credits allowed under this Act, | 11 |
| shall equal (i) the total amount of
tax that would be imposed | 12 |
| on the foreign insurer's net income allocable to
Illinois for | 13 |
| the taxable year by such foreign insurer's state or country of
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| domicile if that net income were subject to all income taxes | 15 |
| and taxes
measured by net income imposed by such foreign | 16 |
| insurer's state or country of
domicile, net of all credits | 17 |
| allowed or (ii) a rate of zero if no such tax is
imposed on such | 18 |
| income by the foreign insurer's state of domicile.
For the | 19 |
| purposes of this subsection (d-1), an inter-affiliate includes | 20 |
| a
mutual insurer under common management. | 21 |
| (1) For the purposes of subsection (d-1), in no event | 22 |
| shall the sum of the
rates of tax imposed by subsections | 23 |
| (b) and (d) be reduced below the rate at
which the sum of: | 24 |
| (A) the total amount of tax imposed on such foreign | 25 |
| insurer under
this Act for a taxable year, net of all | 26 |
| credits allowed under this Act, plus |
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| (B) the privilege tax imposed by Section 409 of the | 2 |
| Illinois Insurance
Code, the fire insurance company | 3 |
| tax imposed by Section 12 of the Fire
Investigation | 4 |
| Act, and the fire department taxes imposed under | 5 |
| Section 11-10-1
of the Illinois Municipal Code, | 6 |
| equals 1.25% for taxable years ending prior to December 31, | 7 |
| 2003, or
1.75% for taxable years ending on or after | 8 |
| December 31, 2003, of the net
taxable premiums written for | 9 |
| the taxable year,
as described by subsection (1) of Section | 10 |
| 409 of the Illinois Insurance Code.
This paragraph will in | 11 |
| no event increase the rates imposed under subsections
(b) | 12 |
| and (d). | 13 |
| (2) Any reduction in the rates of tax imposed by this | 14 |
| subsection shall be
applied first against the rates imposed | 15 |
| by subsection (b) and only after the
tax imposed by | 16 |
| subsection (a) net of all credits allowed under this | 17 |
| Section
other than the credit allowed under subsection (i) | 18 |
| has been reduced to zero,
against the rates imposed by | 19 |
| subsection (d). | 20 |
| This subsection (d-1) is exempt from the provisions of | 21 |
| Section 250. | 22 |
| (e) Investment credit. A taxpayer shall be allowed a credit
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| against the Personal Property Tax Replacement Income Tax for
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| investment in qualified property. | 25 |
| (1) A taxpayer shall be allowed a credit equal to .5% | 26 |
| of
the basis of qualified property placed in service during |
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| the taxable year,
provided such property is placed in | 2 |
| service on or after
July 1, 1984. There shall be allowed an | 3 |
| additional credit equal
to .5% of the basis of qualified | 4 |
| property placed in service during the
taxable year, | 5 |
| provided such property is placed in service on or
after | 6 |
| July 1, 1986, and the taxpayer's base employment
within | 7 |
| Illinois has increased by 1% or more over the preceding | 8 |
| year as
determined by the taxpayer's employment records | 9 |
| filed with the
Illinois Department of Employment Security. | 10 |
| Taxpayers who are new to
Illinois shall be deemed to have | 11 |
| met the 1% growth in base employment for
the first year in | 12 |
| which they file employment records with the Illinois
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| Department of Employment Security. The provisions added to | 14 |
| this Section by
Public Act 85-1200 (and restored by Public | 15 |
| Act 87-895) shall be
construed as declaratory of existing | 16 |
| law and not as a new enactment. If,
in any year, the | 17 |
| increase in base employment within Illinois over the
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| preceding year is less than 1%, the additional credit shall | 19 |
| be limited to that
percentage times a fraction, the | 20 |
| numerator of which is .5% and the denominator
of which is | 21 |
| 1%, but shall not exceed .5%. The investment credit shall | 22 |
| not be
allowed to the extent that it would reduce a | 23 |
| taxpayer's liability in any tax
year below zero, nor may | 24 |
| any credit for qualified property be allowed for any
year | 25 |
| other than the year in which the property was placed in | 26 |
| service in
Illinois. For tax years ending on or after |
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| December 31, 1987, and on or
before December 31, 1988, the | 2 |
| credit shall be allowed for the tax year in
which the | 3 |
| property is placed in service, or, if the amount of the | 4 |
| credit
exceeds the tax liability for that year, whether it | 5 |
| exceeds the original
liability or the liability as later | 6 |
| amended, such excess may be carried
forward and applied to | 7 |
| the tax liability of the 5 taxable years following
the | 8 |
| excess credit years if the taxpayer (i) makes investments | 9 |
| which cause
the creation of a minimum of 2,000 full-time | 10 |
| equivalent jobs in Illinois,
(ii) is located in an | 11 |
| enterprise zone established pursuant to the Illinois
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| Enterprise Zone Act and (iii) is certified by the | 13 |
| Department of Commerce
and Community Affairs (now | 14 |
| Department of Commerce and Economic Opportunity) as | 15 |
| complying with the requirements specified in
clause (i) and | 16 |
| (ii) by July 1, 1986. The Department of Commerce and
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| Community Affairs (now Department of Commerce and Economic | 18 |
| Opportunity) shall notify the Department of Revenue of all | 19 |
| such
certifications immediately. For tax years ending | 20 |
| after December 31, 1988,
the credit shall be allowed for | 21 |
| the tax year in which the property is
placed in service, | 22 |
| or, if the amount of the credit exceeds the tax
liability | 23 |
| for that year, whether it exceeds the original liability or | 24 |
| the
liability as later amended, such excess may be carried | 25 |
| forward and applied
to the tax liability of the 5 taxable | 26 |
| years following the excess credit
years. The credit shall |
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| be applied to the earliest year for which there is
a | 2 |
| liability. If there is credit from more than one tax year | 3 |
| that is
available to offset a liability, earlier credit | 4 |
| shall be applied first. | 5 |
| (2) The term "qualified property" means property | 6 |
| which: | 7 |
| (A) is tangible, whether new or used, including | 8 |
| buildings and structural
components of buildings and | 9 |
| signs that are real property, but not including
land or | 10 |
| improvements to real property that are not a structural | 11 |
| component of a
building such as landscaping, sewer | 12 |
| lines, local access roads, fencing, parking
lots, and | 13 |
| other appurtenances; | 14 |
| (B) is depreciable pursuant to Section 167 of the | 15 |
| Internal Revenue Code,
except that "3-year property" | 16 |
| as defined in Section 168(c)(2)(A) of that
Code is not | 17 |
| eligible for the credit provided by this subsection | 18 |
| (e); | 19 |
| (C) is acquired by purchase as defined in Section | 20 |
| 179(d) of
the Internal Revenue Code; | 21 |
| (D) is used in Illinois by a taxpayer who is | 22 |
| primarily engaged in
manufacturing, or in mining coal | 23 |
| or fluorite, or in retailing, or was placed in service | 24 |
| on or after July 1, 2006 in a River Edge Redevelopment | 25 |
| Zone established pursuant to the River Edge | 26 |
| Redevelopment Zone Act; and |
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| (E) has not previously been used in Illinois in | 2 |
| such a manner and by
such a person as would qualify for | 3 |
| the credit provided by this subsection
(e) or | 4 |
| subsection (f). | 5 |
| (3) For purposes of this subsection (e), | 6 |
| "manufacturing" means
the material staging and production | 7 |
| of tangible personal property by
procedures commonly | 8 |
| regarded as manufacturing, processing, fabrication, or
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| assembling which changes some existing material into new | 10 |
| shapes, new
qualities, or new combinations. For purposes of | 11 |
| this subsection
(e) the term "mining" shall have the same | 12 |
| meaning as the term "mining" in
Section 613(c) of the | 13 |
| Internal Revenue Code. For purposes of this subsection
(e), | 14 |
| the term "retailing" means the sale of tangible personal | 15 |
| property for use or consumption and not for resale, or
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| services rendered in conjunction with the sale of tangible | 17 |
| personal property for use or consumption and not for | 18 |
| resale. For purposes of this subsection (e), "tangible | 19 |
| personal property" has the same meaning as when that term | 20 |
| is used in the Retailers' Occupation Tax Act, and, for | 21 |
| taxable years ending after December 31, 2008, does not | 22 |
| include the generation, transmission, or distribution of | 23 |
| electricity. | 24 |
| (4) The basis of qualified property shall be the basis
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| used to compute the depreciation deduction for federal | 26 |
| income tax purposes. |
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| (5) If the basis of the property for federal income tax | 2 |
| depreciation
purposes is increased after it has been placed | 3 |
| in service in Illinois by
the taxpayer, the amount of such | 4 |
| increase shall be deemed property placed
in service on the | 5 |
| date of such increase in basis. | 6 |
| (6) The term "placed in service" shall have the same
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| meaning as under Section 46 of the Internal Revenue Code. | 8 |
| (7) If during any taxable year, any property ceases to
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| be qualified property in the hands of the taxpayer within | 10 |
| 48 months after
being placed in service, or the situs of | 11 |
| any qualified property is
moved outside Illinois within 48 | 12 |
| months after being placed in service, the
Personal Property | 13 |
| Tax Replacement Income Tax for such taxable year shall be
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| increased. Such increase shall be determined by (i) | 15 |
| recomputing the
investment credit which would have been | 16 |
| allowed for the year in which
credit for such property was | 17 |
| originally allowed by eliminating such
property from such | 18 |
| computation and, (ii) subtracting such recomputed credit
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| from the amount of credit previously allowed. For the | 20 |
| purposes of this
paragraph (7), a reduction of the basis of | 21 |
| qualified property resulting
from a redetermination of the | 22 |
| purchase price shall be deemed a disposition
of qualified | 23 |
| property to the extent of such reduction. | 24 |
| (8) Unless the investment credit is extended by law, | 25 |
| the
basis of qualified property shall not include costs | 26 |
| incurred after
December 31, 2013, except for costs incurred |
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| pursuant to a binding
contract entered into on or before | 2 |
| December 31, 2013. | 3 |
| (9) Each taxable year ending before December 31, 2000, | 4 |
| a partnership may
elect to pass through to its
partners the | 5 |
| credits to which the partnership is entitled under this | 6 |
| subsection
(e) for the taxable year. A partner may use the | 7 |
| credit allocated to him or her
under this paragraph only | 8 |
| against the tax imposed in subsections (c) and (d) of
this | 9 |
| Section. If the partnership makes that election, those | 10 |
| credits shall be
allocated among the partners in the | 11 |
| partnership in accordance with the rules
set forth in | 12 |
| Section 704(b) of the Internal Revenue Code, and the rules
| 13 |
| promulgated under that Section, and the allocated amount of | 14 |
| the credits shall
be allowed to the partners for that | 15 |
| taxable year. The partnership shall make
this election on | 16 |
| its Personal Property Tax Replacement Income Tax return for
| 17 |
| that taxable year. The election to pass through the credits | 18 |
| shall be
irrevocable. | 19 |
| For taxable years ending on or after December 31, 2000, | 20 |
| a
partner that qualifies its
partnership for a subtraction | 21 |
| under subparagraph (I) of paragraph (2) of
subsection (d) | 22 |
| of Section 203 or a shareholder that qualifies a Subchapter | 23 |
| S
corporation for a subtraction under subparagraph (S) of | 24 |
| paragraph (2) of
subsection (b) of Section 203 shall be | 25 |
| allowed a credit under this subsection
(e) equal to its | 26 |
| share of the credit earned under this subsection (e) during
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| the taxable year by the partnership or Subchapter S | 2 |
| corporation, determined in
accordance with the | 3 |
| determination of income and distributive share of
income | 4 |
| under Sections 702 and 704 and Subchapter S of the Internal | 5 |
| Revenue
Code. This paragraph is exempt from the provisions | 6 |
| of Section 250. | 7 |
| (f) Investment credit; Enterprise Zone; River Edge | 8 |
| Redevelopment Zone. | 9 |
| (1) A taxpayer shall be allowed a credit against the | 10 |
| tax imposed
by subsections (a) and (b) of this Section for | 11 |
| investment in qualified
property which is placed in service | 12 |
| in an Enterprise Zone created
pursuant to the Illinois | 13 |
| Enterprise Zone Act or, for property placed in service on | 14 |
| or after July 1, 2006, a River Edge Redevelopment Zone | 15 |
| established pursuant to the River Edge Redevelopment Zone | 16 |
| Act. For partners, shareholders
of Subchapter S | 17 |
| corporations, and owners of limited liability companies,
| 18 |
| if the liability company is treated as a partnership for | 19 |
| purposes of
federal and State income taxation, there shall | 20 |
| be allowed a credit under
this subsection (f) to be | 21 |
| determined in accordance with the determination
of income | 22 |
| and distributive share of income under Sections 702 and 704 | 23 |
| and
Subchapter S of the Internal Revenue Code. The credit | 24 |
| shall be .5% of the
basis for such property. The credit | 25 |
| shall be available only in the taxable
year in which the | 26 |
| property is placed in service in the Enterprise Zone or |
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| River Edge Redevelopment Zone and
shall not be allowed to | 2 |
| the extent that it would reduce a taxpayer's
liability for | 3 |
| the tax imposed by subsections (a) and (b) of this Section | 4 |
| to
below zero. For tax years ending on or after December | 5 |
| 31, 1985, the credit
shall be allowed for the tax year in | 6 |
| which the property is placed in
service, or, if the amount | 7 |
| of the credit exceeds the tax liability for that
year, | 8 |
| whether it exceeds the original liability or the liability | 9 |
| as later
amended, such excess may be carried forward and | 10 |
| applied to the tax
liability of the 5 taxable years | 11 |
| following the excess credit year.
The credit shall be | 12 |
| applied to the earliest year for which there is a
| 13 |
| liability. If there is credit from more than one tax year | 14 |
| that is available
to offset a liability, the credit | 15 |
| accruing first in time shall be applied
first. | 16 |
| (2) The term qualified property means property which: | 17 |
| (A) is tangible, whether new or used, including | 18 |
| buildings and
structural components of buildings; | 19 |
| (B) is depreciable pursuant to Section 167 of the | 20 |
| Internal Revenue
Code, except that "3-year property" | 21 |
| as defined in Section 168(c)(2)(A) of
that Code is not | 22 |
| eligible for the credit provided by this subsection | 23 |
| (f); | 24 |
| (C) is acquired by purchase as defined in Section | 25 |
| 179(d) of
the Internal Revenue Code; | 26 |
| (D) is used in the Enterprise Zone or River Edge |
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| Redevelopment Zone by the taxpayer; and | 2 |
| (E) has not been previously used in Illinois in | 3 |
| such a manner and by
such a person as would qualify for | 4 |
| the credit provided by this subsection
(f) or | 5 |
| subsection (e). | 6 |
| (3) The basis of qualified property shall be the basis | 7 |
| used to compute
the depreciation deduction for federal | 8 |
| income tax purposes. | 9 |
| (4) If the basis of the property for federal income tax | 10 |
| depreciation
purposes is increased after it has been placed | 11 |
| in service in the Enterprise
Zone or River Edge | 12 |
| Redevelopment Zone by the taxpayer, the amount of such | 13 |
| increase shall be deemed property
placed in service on the | 14 |
| date of such increase in basis. | 15 |
| (5) The term "placed in service" shall have the same | 16 |
| meaning as under
Section 46 of the Internal Revenue Code. | 17 |
| (6) If during any taxable year, any property ceases to | 18 |
| be qualified
property in the hands of the taxpayer within | 19 |
| 48 months after being placed
in service, or the situs of | 20 |
| any qualified property is moved outside the
Enterprise Zone | 21 |
| or River Edge Redevelopment Zone within 48 months after | 22 |
| being placed in service, the tax
imposed under subsections | 23 |
| (a) and (b) of this Section for such taxable year
shall be | 24 |
| increased. Such increase shall be determined by (i) | 25 |
| recomputing
the investment credit which would have been | 26 |
| allowed for the year in which
credit for such property was |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| originally allowed by eliminating such
property from such | 2 |
| computation, and (ii) subtracting such recomputed credit
| 3 |
| from the amount of credit previously allowed. For the | 4 |
| purposes of this
paragraph (6), a reduction of the basis of | 5 |
| qualified property resulting
from a redetermination of the | 6 |
| purchase price shall be deemed a disposition
of qualified | 7 |
| property to the extent of such reduction. | 8 |
| (7) There shall be allowed an additional credit equal | 9 |
| to 0.5% of the basis of qualified property placed in | 10 |
| service during the taxable year in a River Edge | 11 |
| Redevelopment Zone, provided such property is placed in | 12 |
| service on or after July 1, 2006, and the taxpayer's base | 13 |
| employment within Illinois has increased by 1% or more over | 14 |
| the preceding year as determined by the taxpayer's | 15 |
| employment records filed with the Illinois Department of | 16 |
| Employment Security. Taxpayers who are new to Illinois | 17 |
| shall be deemed to have met the 1% growth in base | 18 |
| employment for the first year in which they file employment | 19 |
| records with the Illinois Department of Employment | 20 |
| Security. If, in any year, the increase in base employment | 21 |
| within Illinois over the preceding year is less than 1%, | 22 |
| the additional credit shall be limited to that percentage | 23 |
| times a fraction, the numerator of which is 0.5% and the | 24 |
| denominator of which is 1%, but shall not exceed 0.5%.
| 25 |
| (g) Jobs Tax Credit; Enterprise Zone, River Edge | 26 |
| Redevelopment Zone, and Foreign Trade Zone or Sub-Zone. |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| (1) A taxpayer conducting a trade or business in an | 2 |
| enterprise zone
or a High Impact Business designated by the | 3 |
| Department of Commerce and
Economic Opportunity or for | 4 |
| taxable years ending on or after December 31, 2006, in a | 5 |
| River Edge Redevelopment Zone conducting a trade or | 6 |
| business in a federally designated
Foreign Trade Zone or | 7 |
| Sub-Zone shall be allowed a credit against the tax
imposed | 8 |
| by subsections (a) and (b) of this Section in the amount of | 9 |
| $500
per eligible employee hired to work in the zone during | 10 |
| the taxable year. | 11 |
| (2) To qualify for the credit: | 12 |
| (A) the taxpayer must hire 5 or more eligible | 13 |
| employees to work in an
enterprise zone, River Edge | 14 |
| Redevelopment Zone, or federally designated Foreign | 15 |
| Trade Zone or Sub-Zone
during the taxable year; | 16 |
| (B) the taxpayer's total employment within the | 17 |
| enterprise zone, River Edge Redevelopment Zone, or
| 18 |
| federally designated Foreign Trade Zone or Sub-Zone | 19 |
| must
increase by 5 or more full-time employees beyond | 20 |
| the total employed in that
zone at the end of the | 21 |
| previous tax year for which a jobs tax
credit under | 22 |
| this Section was taken, or beyond the total employed by | 23 |
| the
taxpayer as of December 31, 1985, whichever is | 24 |
| later; and | 25 |
| (C) the eligible employees must be employed 180 | 26 |
| consecutive days in
order to be deemed hired for |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| purposes of this subsection. | 2 |
| (3) An "eligible employee" means an employee who is: | 3 |
| (A) Certified by the Department of Commerce and | 4 |
| Economic Opportunity
as "eligible for services" | 5 |
| pursuant to regulations promulgated in
accordance with | 6 |
| Title II of the Job Training Partnership Act, Training
| 7 |
| Services for the Disadvantaged or Title III of the Job | 8 |
| Training Partnership
Act, Employment and Training | 9 |
| Assistance for Dislocated Workers Program. | 10 |
| (B) Hired after the enterprise zone, River Edge | 11 |
| Redevelopment Zone, or federally designated Foreign
| 12 |
| Trade Zone or Sub-Zone was designated or the trade or
| 13 |
| business was located in that zone, whichever is later. | 14 |
| (C) Employed in the enterprise zone, River Edge | 15 |
| Redevelopment Zone, or Foreign Trade Zone or
Sub-Zone. | 16 |
| An employee is employed in an
enterprise zone or | 17 |
| federally designated Foreign Trade Zone or Sub-Zone
if | 18 |
| his services are rendered there or it is the base of
| 19 |
| operations for the services performed. | 20 |
| (D) A full-time employee working 30 or more hours | 21 |
| per week. | 22 |
| (4) For tax years ending on or after December 31, 1985 | 23 |
| and prior to
December 31, 1988, the credit shall be allowed | 24 |
| for the tax year in which
the eligible employees are hired. | 25 |
| For tax years ending on or after
December 31, 1988, the | 26 |
| credit shall be allowed for the tax year immediately
|
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| following the tax year in which the eligible employees are | 2 |
| hired. If the
amount of the credit exceeds the tax | 3 |
| liability for that year, whether it
exceeds the original | 4 |
| liability or the liability as later amended, such
excess | 5 |
| may be carried forward and applied to the tax liability of | 6 |
| the 5
taxable years following the excess credit year. The | 7 |
| credit shall be
applied to the earliest year for which | 8 |
| there is a liability. If there is
credit from more than one | 9 |
| tax year that is available to offset a liability,
earlier | 10 |
| credit shall be applied first. | 11 |
| (5) The Department of Revenue shall promulgate such | 12 |
| rules and regulations
as may be deemed necessary to carry | 13 |
| out the purposes of this subsection (g). | 14 |
| (6) The credit shall be available for eligible | 15 |
| employees hired on or
after January 1, 1986. | 16 |
| (h) Investment credit; High Impact Business. | 17 |
| (1) Subject to subsections (b) and (b-5) of Section
5.5 | 18 |
| of the Illinois Enterprise Zone Act, a taxpayer shall be | 19 |
| allowed a credit
against the tax imposed by subsections (a) | 20 |
| and (b) of this Section for
investment in qualified
| 21 |
| property which is placed in service by a Department of | 22 |
| Commerce and Economic Opportunity
designated High Impact | 23 |
| Business. The credit shall be .5% of the basis
for such | 24 |
| property. The credit shall not be available (i) until the | 25 |
| minimum
investments in qualified property set forth in | 26 |
| subdivision (a)(3)(A) of
Section 5.5 of the Illinois
|
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| Enterprise Zone Act have been satisfied
or (ii) until the | 2 |
| time authorized in subsection (b-5) of the Illinois
| 3 |
| Enterprise Zone Act for entities designated as High Impact | 4 |
| Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | 5 |
| (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | 6 |
| Act, and shall not be allowed to the extent that it would
| 7 |
| reduce a taxpayer's liability for the tax imposed by | 8 |
| subsections (a) and (b) of
this Section to below zero. The | 9 |
| credit applicable to such investments shall be
taken in the | 10 |
| taxable year in which such investments have been completed. | 11 |
| The
credit for additional investments beyond the minimum | 12 |
| investment by a designated
high impact business authorized | 13 |
| under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | 14 |
| Enterprise Zone Act shall be available only in the taxable | 15 |
| year in
which the property is placed in service and shall | 16 |
| not be allowed to the extent
that it would reduce a | 17 |
| taxpayer's liability for the tax imposed by subsections
(a) | 18 |
| and (b) of this Section to below zero.
For tax years ending | 19 |
| on or after December 31, 1987, the credit shall be
allowed | 20 |
| for the tax year in which the property is placed in | 21 |
| service, or, if
the amount of the credit exceeds the tax | 22 |
| liability for that year, whether
it exceeds the original | 23 |
| liability or the liability as later amended, such
excess | 24 |
| may be carried forward and applied to the tax liability of | 25 |
| the 5
taxable years following the excess credit year. The | 26 |
| credit shall be
applied to the earliest year for which |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| there is a liability. If there is
credit from more than one | 2 |
| tax year that is available to offset a liability,
the | 3 |
| credit accruing first in time shall be applied first. | 4 |
| Changes made in this subdivision (h)(1) by Public Act | 5 |
| 88-670
restore changes made by Public Act 85-1182 and | 6 |
| reflect existing law. | 7 |
| (2) The term qualified property means property which: | 8 |
| (A) is tangible, whether new or used, including | 9 |
| buildings and
structural components of buildings; | 10 |
| (B) is depreciable pursuant to Section 167 of the | 11 |
| Internal Revenue
Code, except that "3-year property" | 12 |
| as defined in Section 168(c)(2)(A) of
that Code is not | 13 |
| eligible for the credit provided by this subsection | 14 |
| (h); | 15 |
| (C) is acquired by purchase as defined in Section | 16 |
| 179(d) of the
Internal Revenue Code; and | 17 |
| (D) is not eligible for the Enterprise Zone | 18 |
| Investment Credit provided
by subsection (f) of this | 19 |
| Section. | 20 |
| (3) The basis of qualified property shall be the basis | 21 |
| used to compute
the depreciation deduction for federal | 22 |
| income tax purposes. | 23 |
| (4) If the basis of the property for federal income tax | 24 |
| depreciation
purposes is increased after it has been placed | 25 |
| in service in a federally
designated Foreign Trade Zone or | 26 |
| Sub-Zone located in Illinois by the taxpayer,
the amount of |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| such increase shall be deemed property placed in service on
| 2 |
| the date of such increase in basis. | 3 |
| (5) The term "placed in service" shall have the same | 4 |
| meaning as under
Section 46 of the Internal Revenue Code. | 5 |
| (6) If during any taxable year ending on or before | 6 |
| December 31, 1996,
any property ceases to be qualified
| 7 |
| property in the hands of the taxpayer within 48 months | 8 |
| after being placed
in service, or the situs of any | 9 |
| qualified property is moved outside
Illinois within 48 | 10 |
| months after being placed in service, the tax imposed
under | 11 |
| subsections (a) and (b) of this Section for such taxable | 12 |
| year shall
be increased. Such increase shall be determined | 13 |
| by (i) recomputing the
investment credit which would have | 14 |
| been allowed for the year in which
credit for such property | 15 |
| was originally allowed by eliminating such
property from | 16 |
| such computation, and (ii) subtracting such recomputed | 17 |
| credit
from the amount of credit previously allowed. For | 18 |
| the purposes of this
paragraph (6), a reduction of the | 19 |
| basis of qualified property resulting
from a | 20 |
| redetermination of the purchase price shall be deemed a | 21 |
| disposition
of qualified property to the extent of such | 22 |
| reduction. | 23 |
| (7) Beginning with tax years ending after December 31, | 24 |
| 1996, if a
taxpayer qualifies for the credit under this | 25 |
| subsection (h) and thereby is
granted a tax abatement and | 26 |
| the taxpayer relocates its entire facility in
violation of |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| the explicit terms and length of the contract under Section
| 2 |
| 18-183 of the Property Tax Code, the tax imposed under | 3 |
| subsections
(a) and (b) of this Section shall be increased | 4 |
| for the taxable year
in which the taxpayer relocated its | 5 |
| facility by an amount equal to the
amount of credit | 6 |
| received by the taxpayer under this subsection (h). | 7 |
| (i) Credit for Personal Property Tax Replacement Income | 8 |
| Tax.
For tax years ending prior to December 31, 2003, a credit | 9 |
| shall be allowed
against the tax imposed by
subsections (a) and | 10 |
| (b) of this Section for the tax imposed by subsections (c)
and | 11 |
| (d) of this Section. This credit shall be computed by | 12 |
| multiplying the tax
imposed by subsections (c) and (d) of this | 13 |
| Section by a fraction, the numerator
of which is base income | 14 |
| allocable to Illinois and the denominator of which is
Illinois | 15 |
| base income, and further multiplying the product by the tax | 16 |
| rate
imposed by subsections (a) and (b) of this Section. | 17 |
| Any credit earned on or after December 31, 1986 under
this | 18 |
| subsection which is unused in the year
the credit is computed | 19 |
| because it exceeds the tax liability imposed by
subsections (a) | 20 |
| and (b) for that year (whether it exceeds the original
| 21 |
| liability or the liability as later amended) may be carried | 22 |
| forward and
applied to the tax liability imposed by subsections | 23 |
| (a) and (b) of the 5
taxable years following the excess credit | 24 |
| year, provided that no credit may
be carried forward to any | 25 |
| year ending on or
after December 31, 2003. This credit shall be
| 26 |
| applied first to the earliest year for which there is a |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| liability. If
there is a credit under this subsection from more | 2 |
| than one tax year that is
available to offset a liability the | 3 |
| earliest credit arising under this
subsection shall be applied | 4 |
| first. | 5 |
| If, during any taxable year ending on or after December 31, | 6 |
| 1986, the
tax imposed by subsections (c) and (d) of this | 7 |
| Section for which a taxpayer
has claimed a credit under this | 8 |
| subsection (i) is reduced, the amount of
credit for such tax | 9 |
| shall also be reduced. Such reduction shall be
determined by | 10 |
| recomputing the credit to take into account the reduced tax
| 11 |
| imposed by subsections (c) and (d). If any portion of the
| 12 |
| reduced amount of credit has been carried to a different | 13 |
| taxable year, an
amended return shall be filed for such taxable | 14 |
| year to reduce the amount of
credit claimed. | 15 |
| (j) Training expense credit. Beginning with tax years | 16 |
| ending on or
after December 31, 1986 and prior to December 31, | 17 |
| 2003, a taxpayer shall be
allowed a credit against the
tax | 18 |
| imposed by subsections (a) and (b) under this Section
for all | 19 |
| amounts paid or accrued, on behalf of all persons
employed by | 20 |
| the taxpayer in Illinois or Illinois residents employed
outside | 21 |
| of Illinois by a taxpayer, for educational or vocational | 22 |
| training in
semi-technical or technical fields or semi-skilled | 23 |
| or skilled fields, which
were deducted from gross income in the | 24 |
| computation of taxable income. The
credit against the tax | 25 |
| imposed by subsections (a) and (b) shall be 1.6% of
such | 26 |
| training expenses. For partners, shareholders of subchapter S
|
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| corporations, and owners of limited liability companies, if the | 2 |
| liability
company is treated as a partnership for purposes of | 3 |
| federal and State income
taxation, there shall be allowed a | 4 |
| credit under this subsection (j) to be
determined in accordance | 5 |
| with the determination of income and distributive
share of | 6 |
| income under Sections 702 and 704 and subchapter S of the | 7 |
| Internal
Revenue Code. | 8 |
| Any credit allowed under this subsection which is unused in | 9 |
| the year
the credit is earned may be carried forward to each of | 10 |
| the 5 taxable
years following the year for which the credit is | 11 |
| first computed until it is
used. This credit shall be applied | 12 |
| first to the earliest year for which
there is a liability. If | 13 |
| there is a credit under this subsection from more
than one tax | 14 |
| year that is available to offset a liability the earliest
| 15 |
| credit arising under this subsection shall be applied first. No | 16 |
| carryforward
credit may be claimed in any tax year ending on or | 17 |
| after
December 31, 2003. | 18 |
| (k) Research and development credit. | 19 |
| For tax years ending after July 1, 1990 and prior to
| 20 |
| December 31, 2003, and beginning again for tax years ending on | 21 |
| or after December 31, 2004, and ending prior to January 1, | 22 |
| 2011, a taxpayer shall be
allowed a credit against the tax | 23 |
| imposed by subsections (a) and (b) of this
Section for | 24 |
| increasing research activities in this State. The credit
| 25 |
| allowed against the tax imposed by subsections (a) and (b) | 26 |
| shall be equal
to 6 1/2% of the qualifying expenditures for |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| increasing research activities
in this State. For partners, | 2 |
| shareholders of subchapter S corporations, and
owners of | 3 |
| limited liability companies, if the liability company is | 4 |
| treated as a
partnership for purposes of federal and State | 5 |
| income taxation, there shall be
allowed a credit under this | 6 |
| subsection to be determined in accordance with the
| 7 |
| determination of income and distributive share of income under | 8 |
| Sections 702 and
704 and subchapter S of the Internal Revenue | 9 |
| Code. | 10 |
| For purposes of this subsection, "qualifying expenditures" | 11 |
| means the
qualifying expenditures as defined for the federal | 12 |
| credit for increasing
research activities which would be | 13 |
| allowable under Section 41 of the
Internal Revenue Code and | 14 |
| which are conducted in this State, "qualifying
expenditures for | 15 |
| increasing research activities in this State" means the
excess | 16 |
| of qualifying expenditures for the taxable year in which | 17 |
| incurred
over qualifying expenditures for the base period, | 18 |
| "qualifying expenditures
for the base period" means the average | 19 |
| of the qualifying expenditures for
each year in the base | 20 |
| period, and "base period" means the 3 taxable years
immediately | 21 |
| preceding the taxable year for which the determination is
being | 22 |
| made. | 23 |
| Any credit in excess of the tax liability for the taxable | 24 |
| year
may be carried forward. A taxpayer may elect to have the
| 25 |
| unused credit shown on its final completed return carried over | 26 |
| as a credit
against the tax liability for the following 5 |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| taxable years or until it has
been fully used, whichever occurs | 2 |
| first; provided that no credit earned in a tax year ending | 3 |
| prior to December 31, 2003 may be carried forward to any year | 4 |
| ending on or after December 31, 2003 , and no credit may be | 5 |
| carried forward to any taxable year ending on or after January | 6 |
| 1, 2011 . | 7 |
| If an unused credit is carried forward to a given year from | 8 |
| 2 or more
earlier years, that credit arising in the earliest | 9 |
| year will be applied
first against the tax liability for the | 10 |
| given year. If a tax liability for
the given year still | 11 |
| remains, the credit from the next earliest year will
then be | 12 |
| applied, and so on, until all credits have been used or no tax
| 13 |
| liability for the given year remains. Any remaining unused | 14 |
| credit or
credits then will be carried forward to the next | 15 |
| following year in which a
tax liability is incurred, except | 16 |
| that no credit can be carried forward to
a year which is more | 17 |
| than 5 years after the year in which the expense for
which the | 18 |
| credit is given was incurred. | 19 |
| No inference shall be drawn from this amendatory Act of the | 20 |
| 91st General
Assembly in construing this Section for taxable | 21 |
| years beginning before January
1, 1999. | 22 |
| (l) Environmental Remediation Tax Credit. | 23 |
| (i) For tax years ending after December 31, 1997 and on | 24 |
| or before
December 31, 2001, a taxpayer shall be allowed a | 25 |
| credit against the tax
imposed by subsections (a) and (b) | 26 |
| of this Section for certain amounts paid
for unreimbursed |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| eligible remediation costs, as specified in this | 2 |
| subsection.
For purposes of this Section, "unreimbursed | 3 |
| eligible remediation costs" means
costs approved by the | 4 |
| Illinois Environmental Protection Agency ("Agency") under
| 5 |
| Section 58.14 of the Environmental Protection Act that were | 6 |
| paid in performing
environmental remediation at a site for | 7 |
| which a No Further Remediation Letter
was issued by the | 8 |
| Agency and recorded under Section 58.10 of the | 9 |
| Environmental
Protection Act. The credit must be claimed | 10 |
| for the taxable year in which
Agency approval of the | 11 |
| eligible remediation costs is granted. The credit is
not | 12 |
| available to any taxpayer if the taxpayer or any related | 13 |
| party caused or
contributed to, in any material respect, a | 14 |
| release of regulated substances on,
in, or under the site | 15 |
| that was identified and addressed by the remedial
action | 16 |
| pursuant to the Site Remediation Program of the | 17 |
| Environmental Protection
Act. After the Pollution Control | 18 |
| Board rules are adopted pursuant to the
Illinois | 19 |
| Administrative Procedure Act for the administration and | 20 |
| enforcement of
Section 58.9 of the Environmental | 21 |
| Protection Act, determinations as to credit
availability | 22 |
| for purposes of this Section shall be made consistent with | 23 |
| those
rules. For purposes of this Section, "taxpayer" | 24 |
| includes a person whose tax
attributes the taxpayer has | 25 |
| succeeded to under Section 381 of the Internal
Revenue Code | 26 |
| and "related party" includes the persons disallowed a |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| deduction
for losses by paragraphs (b), (c), and (f)(1) of | 2 |
| Section 267 of the Internal
Revenue Code by virtue of being | 3 |
| a related taxpayer, as well as any of its
partners. The | 4 |
| credit allowed against the tax imposed by subsections (a) | 5 |
| and
(b) shall be equal to 25% of the unreimbursed eligible | 6 |
| remediation costs in
excess of $100,000 per site, except | 7 |
| that the $100,000 threshold shall not apply
to any site | 8 |
| contained in an enterprise zone as determined by the | 9 |
| Department of
Commerce and Community Affairs (now | 10 |
| Department of Commerce and Economic Opportunity). The | 11 |
| total credit allowed shall not exceed
$40,000 per year with | 12 |
| a maximum total of $150,000 per site. For partners and
| 13 |
| shareholders of subchapter S corporations, there shall be | 14 |
| allowed a credit
under this subsection to be determined in | 15 |
| accordance with the determination of
income and | 16 |
| distributive share of income under Sections 702 and 704 and
| 17 |
| subchapter S of the Internal Revenue Code. | 18 |
| (ii) A credit allowed under this subsection that is | 19 |
| unused in the year
the credit is earned may be carried | 20 |
| forward to each of the 5 taxable years
following the year | 21 |
| for which the credit is first earned until it is used.
The | 22 |
| term "unused credit" does not include any amounts of | 23 |
| unreimbursed eligible
remediation costs in excess of the | 24 |
| maximum credit per site authorized under
paragraph (i). | 25 |
| This credit shall be applied first to the earliest year
for | 26 |
| which there is a liability. If there is a credit under this |
|
|
|
09600HB2263sam002 |
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LRB096 08412 RCE 41371 a |
|
| 1 |
| subsection
from more than one tax year that is available to | 2 |
| offset a liability, the
earliest credit arising under this | 3 |
| subsection shall be applied first. A
credit allowed under | 4 |
| this subsection may be sold to a buyer as part of a sale
of | 5 |
| all or part of the remediation site for which the credit | 6 |
| was granted. The
purchaser of a remediation site and the | 7 |
| tax credit shall succeed to the unused
credit and remaining | 8 |
| carry-forward period of the seller. To perfect the
| 9 |
| transfer, the assignor shall record the transfer in the | 10 |
| chain of title for the
site and provide written notice to | 11 |
| the Director of the Illinois Department of
Revenue of the | 12 |
| assignor's intent to sell the remediation site and the | 13 |
| amount of
the tax credit to be transferred as a portion of | 14 |
| the sale. In no event may a
credit be transferred to any | 15 |
| taxpayer if the taxpayer or a related party would
not be | 16 |
| eligible under the provisions of subsection (i). | 17 |
| (iii) For purposes of this Section, the term "site" | 18 |
| shall have the same
meaning as under Section 58.2 of the | 19 |
| Environmental Protection Act. | 20 |
| (m) Education expense credit. Beginning with tax years | 21 |
| ending after
December 31, 1999, a taxpayer who
is the custodian | 22 |
| of one or more qualifying pupils shall be allowed a credit
| 23 |
| against the tax imposed by subsections (a) and (b) of this | 24 |
| Section for
qualified education expenses incurred on behalf of | 25 |
| the qualifying pupils.
The credit shall be equal to 25% of | 26 |
| qualified education expenses, but in no
event may the total |
|
|
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| 1 |
| credit under this subsection claimed by a
family that is the
| 2 |
| custodian of qualifying pupils exceed $500. In no event shall a | 3 |
| credit under
this subsection reduce the taxpayer's liability | 4 |
| under this Act to less than
zero. This subsection is exempt | 5 |
| from the provisions of Section 250 of this
Act. | 6 |
| For purposes of this subsection: | 7 |
| "Qualifying pupils" means individuals who (i) are | 8 |
| residents of the State of
Illinois, (ii) are under the age of | 9 |
| 21 at the close of the school year for
which a credit is | 10 |
| sought, and (iii) during the school year for which a credit
is | 11 |
| sought were full-time pupils enrolled in a kindergarten through | 12 |
| twelfth
grade education program at any school, as defined in | 13 |
| this subsection. | 14 |
| "Qualified education expense" means the amount incurred
on | 15 |
| behalf of a qualifying pupil in excess of $250 for tuition, | 16 |
| book fees, and
lab fees at the school in which the pupil is | 17 |
| enrolled during the regular school
year. | 18 |
| "School" means any public or nonpublic elementary or | 19 |
| secondary school in
Illinois that is in compliance with Title | 20 |
| VI of the Civil Rights Act of 1964
and attendance at which | 21 |
| satisfies the requirements of Section 26-1 of the
School Code, | 22 |
| except that nothing shall be construed to require a child to
| 23 |
| attend any particular public or nonpublic school to qualify for | 24 |
| the credit
under this Section. | 25 |
| "Custodian" means, with respect to qualifying pupils, an | 26 |
| Illinois resident
who is a parent, the parents, a legal |
|
|
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| guardian, or the legal guardians of the
qualifying pupils. | 2 |
| (n) River Edge Redevelopment Zone site remediation tax | 3 |
| credit.
| 4 |
| (i) For tax years ending on or after December 31, 2006, | 5 |
| a taxpayer shall be allowed a credit against the tax | 6 |
| imposed by subsections (a) and (b) of this Section for | 7 |
| certain amounts paid for unreimbursed eligible remediation | 8 |
| costs, as specified in this subsection. For purposes of | 9 |
| this Section, "unreimbursed eligible remediation costs" | 10 |
| means costs approved by the Illinois Environmental | 11 |
| Protection Agency ("Agency") under Section 58.14a of the | 12 |
| Environmental Protection Act that were paid in performing | 13 |
| environmental remediation at a site within a River Edge | 14 |
| Redevelopment Zone for which a No Further Remediation | 15 |
| Letter was issued by the Agency and recorded under Section | 16 |
| 58.10 of the Environmental Protection Act. The credit must | 17 |
| be claimed for the taxable year in which Agency approval of | 18 |
| the eligible remediation costs is granted. The credit is | 19 |
| not available to any taxpayer if the taxpayer or any | 20 |
| related party caused or contributed to, in any material | 21 |
| respect, a release of regulated substances on, in, or under | 22 |
| the site that was identified and addressed by the remedial | 23 |
| action pursuant to the Site Remediation Program of the | 24 |
| Environmental Protection Act. Determinations as to credit | 25 |
| availability for purposes of this Section shall be made | 26 |
| consistent with rules adopted by the Pollution Control |
|
|
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| Board pursuant to the Illinois Administrative Procedure | 2 |
| Act for the administration and enforcement of Section 58.9 | 3 |
| of the Environmental Protection Act. For purposes of this | 4 |
| Section, "taxpayer" includes a person whose tax attributes | 5 |
| the taxpayer has succeeded to under Section 381 of the | 6 |
| Internal Revenue Code and "related party" includes the | 7 |
| persons disallowed a deduction for losses by paragraphs | 8 |
| (b), (c), and (f)(1) of Section 267 of the Internal Revenue | 9 |
| Code by virtue of being a related taxpayer, as well as any | 10 |
| of its partners. The credit allowed against the tax imposed | 11 |
| by subsections (a) and (b) shall be equal to 25% of the | 12 |
| unreimbursed eligible remediation costs in excess of | 13 |
| $100,000 per site. | 14 |
| (ii) A credit allowed under this subsection that is | 15 |
| unused in the year the credit is earned may be carried | 16 |
| forward to each of the 5 taxable years following the year | 17 |
| for which the credit is first earned until it is used. This | 18 |
| credit shall be applied first to the earliest year for | 19 |
| which there is a liability. If there is a credit under this | 20 |
| subsection from more than one tax year that is available to | 21 |
| offset a liability, the earliest credit arising under this | 22 |
| subsection shall be applied first. A credit allowed under | 23 |
| this subsection may be sold to a buyer as part of a sale of | 24 |
| all or part of the remediation site for which the credit | 25 |
| was granted. The purchaser of a remediation site and the | 26 |
| tax credit shall succeed to the unused credit and remaining |
|
|
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| carry-forward period of the seller. To perfect the | 2 |
| transfer, the assignor shall record the transfer in the | 3 |
| chain of title for the site and provide written notice to | 4 |
| the Director of the Illinois Department of Revenue of the | 5 |
| assignor's intent to sell the remediation site and the | 6 |
| amount of the tax credit to be transferred as a portion of | 7 |
| the sale. In no event may a credit be transferred to any | 8 |
| taxpayer if the taxpayer or a related party would not be | 9 |
| eligible under the provisions of subsection (i). | 10 |
| (iii) For purposes of this Section, the term "site" | 11 |
| shall have the same meaning as under Section 58.2 of the | 12 |
| Environmental Protection Act. | 13 |
| (iv) This subsection is exempt from the provisions of | 14 |
| Section 250.
| 15 |
| (Source: P.A. 95-454, eff. 8-27-07; 96-115, eff. 7-31-09; | 16 |
| 96-116, eff. 7-31-09; revised 8-20-09.) | 17 |
| Section 15. The Tax Delinquency Amnesty Act is amended by | 18 |
| changing Section 10 as follows:
| 19 |
| (35 ILCS 745/10)
| 20 |
| Sec. 10. Amnesty program. The Department shall establish an | 21 |
| amnesty
program for all taxpayers owing any tax imposed by | 22 |
| reason of or pursuant to
authorization by any law of the State | 23 |
| of Illinois and collected by the
Department.
| 24 |
| The amnesty program shall be for a period from October 1, |
|
|
|
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| 2003 through
November 15, 2003 and for a period beginning on | 2 |
| October 1, 2010 and ending November 15, 2010 .
| 3 |
| The amnesty program shall provide that, upon payment by a | 4 |
| taxpayer of all
taxes
due from that taxpayer to the State of | 5 |
| Illinois for any taxable period ending
(i) after June 30,
1983 | 6 |
| and prior to July 1, 2002 for the tax amnesty period occurring | 7 |
| from October 1, 2003 through
November 15, 2003, and (ii) after | 8 |
| June 30, 2002 and prior to July 1, 2009 for the tax amnesty | 9 |
| period beginning on October 1, 2010 through November 15, 2010 , | 10 |
| the
Department shall abate and not seek to collect any interest | 11 |
| or penalties that
may be
applicable and the Department shall | 12 |
| not seek civil or criminal prosecution for
any taxpayer for the | 13 |
| period of time for which amnesty has been granted to the
| 14 |
| taxpayer. Failure to pay all taxes due to the State for a | 15 |
| taxable period shall
invalidate any
amnesty granted under this | 16 |
| Act. Amnesty shall be granted only if all amnesty
conditions | 17 |
| are
satisfied by the taxpayer.
| 18 |
| Participation in an amnesty program does not preclude a | 19 |
| taxpayer from claiming a refund for overpayment of tax on an | 20 |
| issue unrelated to the issue for which the taxpayer claimed | 21 |
| amnesty or for any overpayment of tax by a taxpayer estimating | 22 |
| non-final liability for the amnesty program pursuant to Section | 23 |
| 506(b) of the Illinois Income Tax Act. | 24 |
| Amnesty shall not be granted to taxpayers who are a party | 25 |
| to any criminal
investigation or to any civil or criminal | 26 |
| litigation that is pending in any
circuit court or appellate |
|
|
|
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| court or the Supreme Court of this State for
nonpayment, | 2 |
| delinquency, or fraud in relation to any State tax imposed by | 3 |
| any
law of the State of Illinois.
| 4 |
| Voluntary payments made under this Act shall be made by | 5 |
| cash, check,
guaranteed remittance, or ACH debit.
| 6 |
| The Department shall adopt rules as necessary to implement | 7 |
| the provisions of
this Act.
| 8 |
| Except as otherwise provided in this Section, all money | 9 |
| collected under this
Act that would otherwise be deposited into | 10 |
| the General Revenue Fund shall be
deposited as
follows: (i) | 11 |
| one-half into the Common School Fund; (ii) one-half into the
| 12 |
| General
Revenue Fund. Two percent of all money collected under | 13 |
| this Act shall be
deposited by
the State Treasurer into the Tax | 14 |
| Compliance and Administration Fund and,
subject to
| 15 |
| appropriation, shall be used by the Department to cover costs | 16 |
| associated with
the administration of this Act.
| 17 |
| (Source: P.A. 93-26, eff. 6-20-03.)
| 18 |
| Section 20. The Uniform Penalty and Interest Act is amended | 19 |
| by changing Sections 3-2, 3-3, 3-4, 3-5, 3-6, and 3-7.5 as | 20 |
| follows:
| 21 |
| (35 ILCS 735/3-2) (from Ch. 120, par. 2603-2)
| 22 |
| Sec. 3-2. Interest.
| 23 |
| (a) Interest paid by the Department to taxpayers and | 24 |
| interest
charged to taxpayers by the Department shall be paid |
|
|
|
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| 1 |
| at the annual
rate determined by the Department. For periods | 2 |
| prior to January 1, 2004, that
rate shall be the underpayment
| 3 |
| rate established under Section 6621 of the Internal Revenue | 4 |
| Code. For periods
after December 31, 2003, that rate shall be:
| 5 |
| (1) for the one-year period beginning with the date of | 6 |
| underpayment or
overpayment, the short-term federal rate | 7 |
| established under Section 6621 of the
Internal Revenue | 8 |
| Code.
| 9 |
| (2) for any period beginning the day after the one-year | 10 |
| period described
in paragraph (1) of this subsection (a), | 11 |
| the underpayment rate established
under Section 6621 of the | 12 |
| Internal Revenue Code.
| 13 |
| (b) The interest rate shall be adjusted on a semiannual | 14 |
| basis, on
January 1 and July 1, based upon the underpayment | 15 |
| rate or short-term federal
rate going into
effect on that | 16 |
| January 1 or July 1 under Section 6621 of the Internal
Revenue | 17 |
| Code.
| 18 |
| (c) This subsection (c) is applicable to returns due on and | 19 |
| before
December 31, 2000.
Interest shall be simple interest | 20 |
| calculated on a daily basis.
Interest shall accrue upon tax and | 21 |
| penalty due. If notice and demand
is made for the payment of | 22 |
| any amount of tax due and if the amount due is
paid within 30 | 23 |
| days after the date of such notice and demand, interest
under | 24 |
| this Section on the amount so paid shall not be imposed for the
| 25 |
| period after the date of the notice and demand.
| 26 |
| (c-5) This subsection (c-5) is applicable to returns due on |
|
|
|
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| 1 |
| and after
January 1, 2001.
Interest shall be simple interest | 2 |
| calculated on a daily basis. Interest shall
accrue upon tax | 3 |
| due. If notice and demand is made for the payment of any
amount | 4 |
| of tax due and if the amount due is paid within 30 days after | 5 |
| the date
of the notice and demand, interest under this Section | 6 |
| on the amount so paid
shall not be imposed for the period after | 7 |
| the date of the notice and demand.
| 8 |
| (d) No interest shall be paid upon any overpayment of tax | 9 |
| if the
overpayment is refunded or a credit approved within 90 | 10 |
| days after the last
date prescribed for filing the original | 11 |
| return,
or within 90 days of the receipt of the processable | 12 |
| return, or within 90
days after the date of overpayment, | 13 |
| whichever date is latest, as determined
without regard to | 14 |
| processing time by the Comptroller or without regard to
the | 15 |
| date on which the credit is applied to the taxpayer's account.
| 16 |
| In order for an original return to be processable for purposes | 17 |
| of this
Section, it must be in the form prescribed or approved | 18 |
| by
the Department, signed by the person authorized by law, and | 19 |
| contain all
information, schedules, and support documents | 20 |
| necessary to determine the
tax due and to make allocations of | 21 |
| tax as prescribed by law.
For the purposes of computing | 22 |
| interest, a return shall be deemed to be
processable unless the | 23 |
| Department notifies the taxpayer that the return is
not | 24 |
| processable within 90 days after the receipt of the return; | 25 |
| however,
interest shall not accumulate for the period following | 26 |
| this date of notice.
Interest on amounts refunded or credited |
|
|
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| 1 |
| pursuant to the filing of an
amended return or claim for refund | 2 |
| shall be determined from the due date of
the original return or | 3 |
| the date of overpayment, whichever is later, to the
date of | 4 |
| payment by the Department without regard to processing time by | 5 |
| the
Comptroller or the date of credit by the Department or | 6 |
| without regard to
the date on which the credit is applied to | 7 |
| the taxpayer's account. If a
claim for refund relates to an | 8 |
| overpayment attributable to a net loss
carryback as provided by | 9 |
| Section 207 of the Illinois Income Tax Act, the
date of | 10 |
| overpayment shall be the last day of the taxable year in which | 11 |
| the
loss was incurred.
| 12 |
| (e) Interest on erroneous refunds. Any portion of the tax | 13 |
| imposed by an
Act to which this Act is applicable or any | 14 |
| interest or penalty which has
been erroneously refunded and | 15 |
| which is recoverable by the Department shall
bear interest from | 16 |
| the date of payment of the refund. However, no interest
will be | 17 |
| charged if the erroneous refund is for an amount less than $500 | 18 |
| and
is due to a mistake of the Department.
| 19 |
| (f) If a taxpayer has a tax liability for the taxable | 20 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 21 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty | 22 |
| Act and the taxpayer fails to satisfy the tax
liability during | 23 |
| the amnesty period provided for in that Act for that taxable | 24 |
| period , then the interest
charged by the Department under this | 25 |
| Section shall be
imposed at a rate that is 200% of the rate | 26 |
| that would otherwise be imposed
under this Section.
|
|
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| (g) If a taxpayer has a tax liability for the taxable | 2 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 3 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 4 |
| Act, except for any tax liability reported pursuant to Section | 5 |
| 506(b) of the Illinois Income Tax Act that is not final, and | 6 |
| the taxpayer fails to satisfy the tax liability
during the | 7 |
| amnesty period provided for in that Act for that taxable | 8 |
| period, then the interest charged by
the Department under this | 9 |
| Section shall be imposed in an amount that is 200% of
the | 10 |
| amount that would otherwise be imposed under this Section. | 11 |
| (h) No interest shall be paid to a taxpayer on any refund | 12 |
| allowed under Section 10 of the Tax Delinquency Amnesty Act. | 13 |
| (Source: P.A. 95-331, eff. 8-21-07.)
| 14 |
| (35 ILCS 735/3-3) (from Ch. 120, par. 2603-3)
| 15 |
| Sec. 3-3. Penalty for failure to file or pay.
| 16 |
| (a) This subsection (a) is applicable before January 1, | 17 |
| 1996. A penalty
of 5% of the tax required to be shown due on a | 18 |
| return shall be
imposed for failure to file the tax return on | 19 |
| or before the due date prescribed
for filing determined with | 20 |
| regard for any extension of time for filing
(penalty
for late | 21 |
| filing or nonfiling). If any unprocessable return is corrected | 22 |
| and
filed within 21 days after notice by the Department, the | 23 |
| late filing or
nonfiling penalty shall not apply. If a penalty | 24 |
| for late filing or nonfiling
is imposed in addition to a | 25 |
| penalty for late payment, the total penalty due
shall be the |
|
|
|
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| 1 |
| sum of the late filing penalty and the applicable late payment
| 2 |
| penalty.
Beginning on the effective date of this amendatory Act | 3 |
| of 1995, in the case
of any type of tax return required to be | 4 |
| filed more frequently
than annually, when the failure to file | 5 |
| the tax return on or before the
date prescribed for filing | 6 |
| (including any extensions) is shown to be
nonfraudulent and has | 7 |
| not occurred in the 2 years immediately preceding the
failure | 8 |
| to file on the prescribed due date, the penalty imposed by | 9 |
| Section
3-3(a) shall be abated.
| 10 |
| (a-5) This subsection (a-5) is applicable to returns due on | 11 |
| and after
January 1, 1996 and on or before December 31, 2000.
A | 12 |
| penalty equal to 2% of
the tax required to be shown due on a | 13 |
| return, up to a maximum amount of $250,
determined without | 14 |
| regard to any part of the tax that is paid on time or by any
| 15 |
| credit that was properly allowable on the date the return was | 16 |
| required to be
filed, shall be
imposed for failure to file the | 17 |
| tax return on or before the due date prescribed
for filing | 18 |
| determined with regard for any extension of time for filing.
| 19 |
| However, if any return is not filed within 30 days after notice | 20 |
| of nonfiling
mailed by the Department to the last known address | 21 |
| of the taxpayer contained in
Department records, an additional | 22 |
| penalty amount shall be imposed equal to the
greater of $250 or | 23 |
| 2% of the tax shown on the return. However, the additional
| 24 |
| penalty amount may not exceed $5,000 and is determined without | 25 |
| regard to any
part of the tax that is paid on time or by any | 26 |
| credit that was properly
allowable on the date the return was |
|
|
|
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| 1 |
| required to be filed (penalty
for late filing or nonfiling). If | 2 |
| any unprocessable return is corrected and
filed within 30 days | 3 |
| after notice by the Department, the late filing or
nonfiling | 4 |
| penalty shall not apply. If a penalty for late filing or | 5 |
| nonfiling
is imposed in addition to a penalty for late payment, | 6 |
| the total penalty due
shall be the sum of the late filing | 7 |
| penalty and the applicable late payment
penalty.
In the case of | 8 |
| any type of tax return required to be filed more frequently
| 9 |
| than annually, when the failure to file the tax return on or | 10 |
| before the
date prescribed for filing (including any | 11 |
| extensions) is shown to be
nonfraudulent and has not occurred | 12 |
| in the 2 years immediately preceding the
failure to file on the | 13 |
| prescribed due date, the penalty imposed by Section
3-3(a-5) | 14 |
| shall be abated.
| 15 |
| (a-10) This subsection (a-10) is applicable to returns due | 16 |
| on and after
January 1, 2001.
A penalty equal to 2% of
the tax | 17 |
| required to be shown due on a return, up to a maximum amount of | 18 |
| $250,
reduced by any tax that is
paid on time or by any
credit | 19 |
| that was properly allowable on the date the return was required | 20 |
| to be
filed, shall be
imposed for failure to file the tax | 21 |
| return on or before the due date prescribed
for filing | 22 |
| determined with regard for any extension of time for filing.
| 23 |
| However, if any return is not filed within 30 days after notice | 24 |
| of nonfiling
mailed by the Department to the last known address | 25 |
| of the taxpayer contained in
Department records, an additional | 26 |
| penalty amount shall be imposed equal to the
greater of $250 or |
|
|
|
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| 1 |
| 2% of the tax shown on the return. However, the additional
| 2 |
| penalty amount may not exceed $5,000 and is determined without | 3 |
| regard to any
part of the tax that is paid on time or by any | 4 |
| credit that was properly
allowable on the date the return was | 5 |
| required to be filed (penalty
for late filing or nonfiling). If | 6 |
| any unprocessable return is corrected and
filed within 30 days | 7 |
| after notice by the Department, the late filing or
nonfiling | 8 |
| penalty shall not apply. If a penalty for late filing or | 9 |
| nonfiling
is imposed in addition to a penalty for late payment, | 10 |
| the total penalty due
shall be the sum of the late filing | 11 |
| penalty and the applicable late payment
penalty.
In the case of | 12 |
| any type of tax return required to be filed more frequently
| 13 |
| than annually, when the failure to file the tax return on or | 14 |
| before the
date prescribed for filing (including any | 15 |
| extensions) is shown to be
nonfraudulent and has not occurred | 16 |
| in the 2 years immediately preceding the
failure to file on the | 17 |
| prescribed due date, the penalty imposed by Section
3-3(a-10) | 18 |
| shall be abated.
| 19 |
| (b) This subsection is applicable before January 1, 1998.
A | 20 |
| penalty of 15% of the tax shown on the return or the tax | 21 |
| required to
be shown due on the return shall be imposed for | 22 |
| failure to pay:
| 23 |
| (1) the tax shown due on the return on or before the | 24 |
| due date prescribed
for payment of that tax, an amount of | 25 |
| underpayment of estimated tax, or an
amount that is | 26 |
| reported in an amended return other than an amended return
|
|
|
|
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|
| 1 |
| timely filed as required by subsection (b) of Section 506 | 2 |
| of the Illinois
Income Tax Act (penalty for late payment or | 3 |
| nonpayment of admitted liability);
or
| 4 |
| (2) the full amount of any tax required to be shown due | 5 |
| on a
return and which is not shown (penalty for late | 6 |
| payment or nonpayment of
additional liability), within 30 | 7 |
| days after a notice of arithmetic error,
notice and demand, | 8 |
| or a final assessment is issued by the Department.
In the | 9 |
| case of a final assessment arising following a protest and | 10 |
| hearing,
the 30-day period shall not begin until all | 11 |
| proceedings in court for review of
the final assessment | 12 |
| have terminated or the period for obtaining a review has
| 13 |
| expired without proceedings for a review having been | 14 |
| instituted. In the case
of a notice of tax liability that | 15 |
| becomes a final assessment without a protest
and hearing, | 16 |
| the penalty provided in this paragraph (2) shall be imposed | 17 |
| at the
expiration of the period provided for the filing of | 18 |
| a protest.
| 19 |
| (b-5) This subsection is applicable to returns due on and | 20 |
| after January
1, 1998 and on or before December 31, 2000.
A | 21 |
| penalty of 20% of the tax shown on the return or the tax | 22 |
| required to be
shown due on the return shall be imposed for | 23 |
| failure to
pay:
| 24 |
| (1) the tax shown due on the return on or before the | 25 |
| due date prescribed
for payment of that tax, an amount of | 26 |
| underpayment of estimated tax, or an
amount that is |
|
|
|
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| 1 |
| reported in an amended return other than an amended return
| 2 |
| timely filed as required by subsection (b) of Section 506 | 3 |
| of the Illinois
Income Tax Act (penalty for late payment or | 4 |
| nonpayment of admitted liability);
or
| 5 |
| (2) the full amount of any tax required to be shown due | 6 |
| on a
return and which is not shown (penalty for late | 7 |
| payment or nonpayment of
additional liability), within 30 | 8 |
| days after a notice of arithmetic error,
notice and demand, | 9 |
| or a final assessment is issued by the Department.
In the | 10 |
| case of a final assessment arising following a protest and | 11 |
| hearing,
the 30-day period shall not begin until all | 12 |
| proceedings in court for review of
the final assessment | 13 |
| have terminated or the period for obtaining a review has
| 14 |
| expired without proceedings for a review having been | 15 |
| instituted. In the case
of a notice of tax liability that | 16 |
| becomes a final assessment without a protest
and hearing, | 17 |
| the penalty provided in this paragraph (2) shall be imposed | 18 |
| at the
expiration of the period provided for the filing of | 19 |
| a protest.
| 20 |
| (b-10) This subsection (b-10) is applicable to returns due | 21 |
| on and after
January 1, 2001 and on or before December 31, | 22 |
| 2003. A penalty shall be
imposed for failure to pay:
| 23 |
| (1) the tax shown due on a return on or before the due | 24 |
| date prescribed for
payment of that tax, an amount of | 25 |
| underpayment of estimated tax, or an amount
that is | 26 |
| reported in an amended return other than an amended return |
|
|
|
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| timely filed
as required by subsection (b) of Section 506 | 2 |
| of the Illinois Income Tax Act
(penalty for late payment or | 3 |
| nonpayment of admitted liability). The amount of
penalty | 4 |
| imposed under this subsection (b-10)(1) shall be 2% of any | 5 |
| amount that
is paid no later than 30 days after the due | 6 |
| date, 5% of any amount that is
paid later than 30 days | 7 |
| after the due date and not later than 90 days after
the due | 8 |
| date, 10% of any amount that is paid later than 90 days | 9 |
| after the due
date and not later than 180 days after the | 10 |
| due date, and 15% of any amount that
is paid later than 180 | 11 |
| days after the
due date.
If notice and demand is made for | 12 |
| the payment of any amount of tax due and if
the amount due | 13 |
| is paid within 30 days after the date of the notice and | 14 |
| demand,
then the penalty for late payment or nonpayment of | 15 |
| admitted liability under
this subsection (b-10)(1) on the | 16 |
| amount so paid shall not accrue for the period
after the | 17 |
| date of the notice and demand.
| 18 |
| (2) the full amount of any tax required to be shown due | 19 |
| on a return and
that is not shown (penalty for late payment | 20 |
| or nonpayment of additional
liability), within 30 days | 21 |
| after a notice of arithmetic error, notice and
demand, or a | 22 |
| final assessment is issued by the Department. In the case | 23 |
| of a
final assessment arising following a protest and | 24 |
| hearing, the 30-day period
shall not begin until all | 25 |
| proceedings in court for review of the final
assessment | 26 |
| have terminated or the period for obtaining a review has |
|
|
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| expired
without proceedings for a review having been | 2 |
| instituted. The amount of penalty
imposed under this | 3 |
| subsection (b-10)(2) shall be 20% of any amount that is not
| 4 |
| paid within the 30-day period. In the case of a notice of | 5 |
| tax liability that
becomes a final assessment without a | 6 |
| protest and hearing, the penalty provided
in this | 7 |
| subsection (b-10)(2) shall be imposed at the expiration of | 8 |
| the period
provided for the filing of a protest.
| 9 |
| (b-15) This subsection (b-15) is applicable to returns due | 10 |
| on and after
January 1, 2004 and on or before December 31, | 11 |
| 2004. A penalty shall be imposed for failure to pay the tax | 12 |
| shown due or
required to be shown due on a return on or before | 13 |
| the due date prescribed for
payment of that tax, an amount of | 14 |
| underpayment of estimated tax, or an amount
that is reported in | 15 |
| an amended return other than an amended return timely filed
as | 16 |
| required by subsection (b) of Section 506 of the Illinois | 17 |
| Income Tax Act
(penalty for late payment or nonpayment of | 18 |
| admitted liability). The amount of
penalty imposed under this | 19 |
| subsection (b-15)(1) shall be 2% of any amount that
is paid no | 20 |
| later than 30 days after the due date, 10% of any amount that | 21 |
| is
paid later than 30 days after the due date and not later | 22 |
| than 90 days after the
due date, 15% of any amount that is paid | 23 |
| later than 90 days after the due date
and not later than 180 | 24 |
| days after the due date, and 20% of any amount that is
paid | 25 |
| later than 180 days after the due date. If notice and demand is | 26 |
| made for
the payment of any amount of tax due and if the amount |
|
|
|
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| due is paid within 30
days after the date of this notice and | 2 |
| demand, then the penalty for late
payment or nonpayment of | 3 |
| admitted liability under this subsection (b-15)(1) on
the | 4 |
| amount so paid shall not accrue for the period after the date | 5 |
| of the notice
and demand.
| 6 |
| (b-20) This subsection (b-20) is applicable to returns due | 7 |
| on and after January 1, 2005. | 8 |
| (1) A penalty shall be imposed for failure to pay, | 9 |
| prior to the due date for payment, any amount of tax the | 10 |
| payment of which is required to be made prior to the filing | 11 |
| of a return or without a return (penalty for late payment | 12 |
| or nonpayment of estimated or accelerated tax). The amount | 13 |
| of penalty imposed under this paragraph (1) shall be 2% of | 14 |
| any amount that is paid no later than 30 days after the due | 15 |
| date and 10% of any amount that is paid later than 30 days | 16 |
| after the due date. | 17 |
| (2) A penalty shall be imposed for failure to pay the | 18 |
| tax shown due or required to be shown due on a return on or | 19 |
| before the due date prescribed for payment of that tax or | 20 |
| an amount that is reported in an amended return other than | 21 |
| an amended return timely filed as required by subsection | 22 |
| (b) of Section 506 of the Illinois Income Tax Act (penalty | 23 |
| for late payment or nonpayment of tax). The amount of | 24 |
| penalty imposed under this paragraph (2) shall be 2% of any | 25 |
| amount that is paid no later than 30 days after the due | 26 |
| date, 10% of any amount that is paid later than 30 days |
|
|
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| after the due date and prior to the date the Department has | 2 |
| initiated an audit or investigation of the taxpayer, and | 3 |
| 20% of any amount that is paid after the date the | 4 |
| Department has initiated an audit or investigation of the | 5 |
| taxpayer; provided that the penalty shall be reduced to 15% | 6 |
| if the entire amount due is paid not later than 30 days | 7 |
| after the Department has provided the taxpayer with an | 8 |
| amended return (following completion of an occupation, | 9 |
| use, or excise tax audit) or a form for waiver of | 10 |
| restrictions on assessment (following completion of an | 11 |
| income tax audit); provided further that the reduction to | 12 |
| 15% shall be rescinded if the taxpayer makes any claim for | 13 |
| refund or credit of the tax, penalties, or interest | 14 |
| determined to be due upon audit, except in the case of a | 15 |
| claim filed pursuant to subsection (b) of Section 506 of | 16 |
| the Illinois Income Tax Act or to claim a carryover of a | 17 |
| loss or credit, the availability of which was not | 18 |
| determined in the audit. For purposes of this paragraph | 19 |
| (2), any overpayment reported on an original return that | 20 |
| has been allowed as a refund or credit to the taxpayer | 21 |
| shall be deemed to have not been paid on or before the due | 22 |
| date for payment and any amount paid under protest pursuant | 23 |
| to the provisions of the State Officers and Employees Money | 24 |
| Disposition Act shall be deemed to have been paid after the | 25 |
| Department has initiated an audit and more than 30 days | 26 |
| after the Department has provided the taxpayer with an |
|
|
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| amended return (following completion of an occupation, | 2 |
| use, or excise tax audit) or a form for waiver of | 3 |
| restrictions on assessment (following completion of an | 4 |
| income tax audit). | 5 |
| (3) The penalty imposed under this subsection (b-20) | 6 |
| shall be deemed assessed at the time the tax upon which the | 7 |
| penalty is computed is assessed, except that, if the | 8 |
| reduction of the penalty imposed under paragraph (2) of | 9 |
| this subsection (b-20) to 15% is rescinded because a claim | 10 |
| for refund or credit has been filed, the increase in | 11 |
| penalty shall be deemed assessed at the time the claim for | 12 |
| refund or credit is filed.
| 13 |
| (c) For purposes of the late payment penalties, the basis | 14 |
| of the penalty
shall be the tax shown or required to be shown | 15 |
| on a return, whichever is
applicable, reduced by any part of | 16 |
| the tax which is paid on time and by any
credit which was | 17 |
| properly allowable on the date the return was required to
be | 18 |
| filed.
| 19 |
| (d) A penalty shall be applied to the tax required to be | 20 |
| shown even if
that amount is less than the tax shown on the | 21 |
| return.
| 22 |
| (e) This subsection (e) is applicable to returns due before | 23 |
| January 1,
2001.
If both a subsection (b)(1) or (b-5)(1) | 24 |
| penalty and a subsection (b)(2)
or (b-5)(2) penalty are | 25 |
| assessed against the same return, the subsection
(b)(2) or | 26 |
| (b-5)(2) penalty shall
be assessed against only the additional |
|
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| tax found to be due.
| 2 |
| (e-5) This subsection (e-5) is applicable to returns due on | 3 |
| and after
January 1, 2001.
If both a subsection (b-10)(1) | 4 |
| penalty and a subsection
(b-10)(2) penalty are assessed against | 5 |
| the same return,
the subsection (b-10)(2) penalty shall be | 6 |
| assessed against
only the additional tax found to be due.
| 7 |
| (f) If the taxpayer has failed to file the return, the | 8 |
| Department shall
determine the correct tax according to its | 9 |
| best judgment and information,
which amount shall be prima | 10 |
| facie evidence of the correctness of the tax due.
| 11 |
| (g) The time within which to file a return or pay an amount | 12 |
| of tax due
without imposition of a penalty does not extend the | 13 |
| time within which to
file a protest to a notice of tax | 14 |
| liability or a notice of deficiency.
| 15 |
| (h) No return shall be determined to be unprocessable | 16 |
| because of the
omission of any information requested on the | 17 |
| return pursuant to Section
2505-575
of the Department of | 18 |
| Revenue Law (20 ILCS 2505/2505-575).
| 19 |
| (i) If a taxpayer has a tax liability for the taxable | 20 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 21 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 22 |
| Act and the taxpayer fails to satisfy the tax liability
during | 23 |
| the amnesty period provided for in that Act for that taxable | 24 |
| period , then the penalty imposed by
the Department under this | 25 |
| Section shall be imposed in an amount that is 200% of
the | 26 |
| amount that would otherwise be imposed under this Section.
|
|
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| (j) If a taxpayer has a tax liability for the taxable | 2 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 3 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 4 |
| Act, except for any tax liability reported pursuant to Section | 5 |
| 506(b) of the Illinois Income Tax Act that is not final, and | 6 |
| the taxpayer fails to satisfy the tax liability
during the | 7 |
| amnesty period provided for in that Act for that taxable | 8 |
| period, then the penalty imposed by
the Department under this | 9 |
| Section shall be imposed in an amount that is 200% of
the | 10 |
| amount that would otherwise be imposed under this Section. | 11 |
| (Source: P.A. 92-742, eff. 7-25-02; 93-26, eff. 6-20-03; 93-32, | 12 |
| eff. 6-20-03; 93-1068, eff. 1-15-05.)
| 13 |
| (35 ILCS 735/3-4) (from Ch. 120, par. 2603-4)
| 14 |
| Sec. 3-4. Penalty for failure to file correct information | 15 |
| returns.
| 16 |
| (a) Failure to file correct information returns - | 17 |
| imposition of penalty.
| 18 |
| (1) In general. Unless otherwise provided in a tax Act, | 19 |
| in the case of a
failure described in paragraph (2) of this | 20 |
| subsection (a) by any person
with respect to an information | 21 |
| return, that person shall pay a penalty of
$5 for each | 22 |
| return or statement with respect to which the failure | 23 |
| occurs,
but the total amount imposed on that person for all | 24 |
| such failures during
any calendar year shall not exceed | 25 |
| $25,000.
|
|
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| (2) Failures subject to penalty. The following | 2 |
| failures are subject to
the penalty imposed in paragraph | 3 |
| (1) of this subsection (a):
| 4 |
| (A) any failure to file an information return with | 5 |
| the Department on or
before the required filing date, | 6 |
| or
| 7 |
| (B) any failure to include all of the information | 8 |
| required to be shown
on the return or the inclusion of | 9 |
| incorrect information.
| 10 |
| (b) Reduction where correction in specified period.
| 11 |
| (1) Correction within 60 days. If any failure described | 12 |
| in subsection
(a) (2) is corrected within 60 days after the | 13 |
| required filing date:
| 14 |
| (A) the penalty imposed by subsection (a) shall be | 15 |
| reduced by 50%; and
| 16 |
| (B) the total amount imposed on the person for all | 17 |
| such failures during
any calendar year which are so | 18 |
| corrected shall not exceed 50% of the
maximum | 19 |
| prescribed in subsection (a) (1).
| 20 |
| (c) Information return defined. An information return is | 21 |
| any tax return
required by a tax Act to be filed with the | 22 |
| Department that does not, by law,
require the payment of a tax | 23 |
| liability.
| 24 |
| (d) If a taxpayer has a tax liability for the taxable | 25 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 26 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty |
|
|
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| 1 |
| Act and the taxpayer fails to satisfy the tax
liability during | 2 |
| the amnesty period provided for in that Act for that taxable | 3 |
| period , then the penalty
imposed by the Department under this | 4 |
| Section shall be
imposed in an amount that is 200% of the | 5 |
| amount that would otherwise be imposed
under this Section.
| 6 |
| (e) If a taxpayer has a tax liability for the taxable | 7 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 8 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 9 |
| Act, except for any tax liability reported pursuant to Section | 10 |
| 506(b) of the Illinois Income Tax Act that is not final, and | 11 |
| the taxpayer fails to satisfy the tax liability
during the | 12 |
| amnesty period provided for in that Act for that taxable | 13 |
| period, then the penalty imposed by
the Department under this | 14 |
| Section shall be imposed in an amount that is 200% of
the | 15 |
| amount that would otherwise be imposed under this Section. | 16 |
| (Source: P.A. 93-26, eff. 6-20-03.)
| 17 |
| (35 ILCS 735/3-5) (from Ch. 120, par. 2603-5)
| 18 |
| Sec. 3-5. Penalty for negligence.
| 19 |
| (a) If any return or amended return is prepared | 20 |
| negligently, but without
intent to defraud, and filed, in | 21 |
| addition to any penalty imposed under
Section 3-3 of this Act, | 22 |
| a penalty shall be imposed in an amount equal to
20% of any | 23 |
| resulting deficiency.
| 24 |
| (b) Negligence includes any failure to make a reasonable | 25 |
| attempt to
comply with the provisions of any tax Act and |
|
|
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| 1 |
| includes careless, reckless,
or intentional disregard of the | 2 |
| law or regulations.
| 3 |
| (c) No penalty shall be imposed under this Section
if it is | 4 |
| shown that failure to comply with the tax Act is due to | 5 |
| reasonable
cause. A taxpayer is not negligent if the taxpayer | 6 |
| shows substantial authority
to support the return as filed.
| 7 |
| (d) If a taxpayer has a tax liability for the taxable | 8 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 9 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty | 10 |
| Act and the taxpayer fails to satisfy the tax
liability during | 11 |
| the amnesty period provided for in that Act for that taxable | 12 |
| period , then the penalty
imposed by the Department shall be | 13 |
| imposed in an amount
that is 200% of the amount that would | 14 |
| otherwise be imposed in accordance with
this Section.
| 15 |
| (e) If a taxpayer has a tax liability for the taxable | 16 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 17 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 18 |
| Act, except for any tax liability reported pursuant to Section | 19 |
| 506(b) of the Illinois Income Tax Act that is not final, and | 20 |
| the taxpayer fails to satisfy the tax liability
during the | 21 |
| amnesty period provided for in that Act for that taxable | 22 |
| period, then the penalty imposed by
the Department under this | 23 |
| Section shall be imposed in an amount that is 200% of
the | 24 |
| amount that would otherwise be imposed under this Section. | 25 |
| (Source: P.A. 93-26, eff. 6-20-03.)
|
|
|
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| 1 |
| (35 ILCS 735/3-6) (from Ch. 120, par. 2603-6)
| 2 |
| Sec. 3-6. Penalty for fraud.
| 3 |
| (a) If any return or amended return is filed with intent to | 4 |
| defraud, in
addition to any penalty imposed under Section 3-3 | 5 |
| of this Act, a penalty
shall be imposed in an amount equal to | 6 |
| 50% of any resulting deficiency.
| 7 |
| (b) If any claim is filed with intent to defraud, a penalty | 8 |
| shall be
imposed in an amount equal to 50% of the amount | 9 |
| fraudulently claimed for
credit or refund.
| 10 |
| (c) If a taxpayer has a tax liability for the taxable | 11 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 12 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty | 13 |
| Act and the taxpayer fails to satisfy the tax
liability during | 14 |
| the amnesty period provided for in that Act for that taxable | 15 |
| period , then the penalty
imposed by the Department under this | 16 |
| Section shall be imposed in an amount that
is 200% of the | 17 |
| amount that would otherwise be imposed under this Section.
| 18 |
| (d) If a taxpayer has a tax liability for the taxable | 19 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 20 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 21 |
| Act, except for any tax liability reported pursuant to Section | 22 |
| 506(b) of the Illinois Income Tax Act that is not final, and | 23 |
| the taxpayer fails to satisfy the tax liability
during the | 24 |
| amnesty period provided for in that Act for that taxable | 25 |
| period, then the penalty imposed by
the Department under this | 26 |
| Section shall be imposed in an amount that is 200% of
the |
|
|
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| 1 |
| amount that would otherwise be imposed under this Section. | 2 |
| (Source: P.A. 93-26, eff. 6-20-03.)
| 3 |
| (35 ILCS 735/3-7.5)
| 4 |
| Sec. 3-7.5. Bad check penalty.
| 5 |
| (a) In addition to any other penalty provided
in this Act, | 6 |
| a penalty of $25 shall be imposed on any person who issues a | 7 |
| check
or other draft to the Department that is not honored upon | 8 |
| presentment. The
penalty imposed under this Section shall be | 9 |
| deemed assessed at the time of
presentment of the check or | 10 |
| other draft and shall be treated for all purposes,
including | 11 |
| collection and allocation, as part of the tax or other | 12 |
| liability for
which the check or other draft represented | 13 |
| payment.
| 14 |
| (b) If a taxpayer has a tax liability for the taxable | 15 |
| period ending after June 30,
1983 and prior to July 1, 2002 | 16 |
| that is eligible for amnesty under
the Tax Delinquency Amnesty | 17 |
| Act and the taxpayer fails to satisfy the tax
liability during | 18 |
| the amnesty period provided for in that Act for that taxable | 19 |
| period , then the penalty
imposed by the Department under this | 20 |
| Section shall be imposed in an amount that
is 200% of the | 21 |
| amount that would otherwise be imposed under this Section.
| 22 |
| (c) If a taxpayer has a tax liability for the taxable | 23 |
| period ending after June 30, 2002 and prior to July 1, 2009 | 24 |
| that is eligible for amnesty under the
Tax Delinquency Amnesty | 25 |
| Act, except for any tax liability reported pursuant to Section |
|
|
|
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| 1 |
| 506(b) of the Illinois Income Tax Act that is not final, and | 2 |
| the taxpayer fails to satisfy the tax liability
during the | 3 |
| amnesty period provided for in that Act for that taxable | 4 |
| period, then the penalty imposed by
the Department under this | 5 |
| Section shall be imposed in an amount that is 200% of
the | 6 |
| amount that would otherwise be imposed under this Section. | 7 |
| (Source: P.A. 93-26, eff. 6-20-03.)
| 8 |
| Section 99. Effective date. This Act takes effect upon | 9 |
| becoming law.".
|
|