Illinois General Assembly - Full Text of SB1826
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Full Text of SB1826  96th General Assembly


Revenue & Finance Committee

Filed: 4/22/2010





09600SB1826ham001 LRB096 09394 HLH 38792 a


2     AMENDMENT NO. ______. Amend Senate Bill 1826, AS AMENDED,
3 with reference to page and line numbers of Senate Amendment No.
4 1, by replacing everything from line 23 on page 86 through line
5 17 on page 87 with the following:
6             "(F) Cooperatives. In the case of a cooperative
7         corporation or association, the taxable income of such
8         organization determined in accordance with the
9         provisions of Section 1381 through 1388 of the Internal
10         Revenue Code, but without regard to the prohibition
11         against offsetting losses from patronage activities
12         against income from nonpatronage activities; except
13         that a cooperative corporation or association may make
14         an election to follow its federal income tax treatment
15         of patronage losses and nonpatronage losses. In the
16         event such election is made, such losses shall be
17         computed and carried over in a manner consistent with
18         subsection (a) of Section 207 of this Act and



09600SB1826ham001 - 2 - LRB096 09394 HLH 38792 a

1         apportioned by the apportionment factor reported by
2         the cooperative on its Illinois income tax return filed
3         for the taxable year in which the losses are incurred.
4         The election shall be effective for all taxable years
5         with original returns due on or after the date of the
6         election. In addition, the cooperative may file an
7         amended return or returns, as allowed under this Act,
8         to provide that the election shall be effective for
9         losses incurred or carried forward for taxable years
10         occurring prior to the date of the election. Once made,
11         the election may only be revoked upon approval of the
12         Director. The Department shall adopt rules setting
13         forth requirements for documenting the elections and
14         any resulting Illinois net loss and the standards to be
15         used by the Director in evaluating requests to revoke
16         elections. This amendatory Act of the 96th General
17         Assembly is declaratory of existing law;".