Illinois General Assembly - Full Text of SB0009
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Full Text of SB0009  100th General Assembly

SB0009ham001 100TH GENERAL ASSEMBLY

Rep. Jeanne M Ives

Filed: 5/26/2017

 

 


 

 


 
10000SB0009ham001LRB100 06347 HLH 27036 a

1
AMENDMENT TO SENATE BILL 9

2    AMENDMENT NO. ______. Amend Senate Bill 9 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5changing Sections 201 and 222 and by adding Section 225 as
6follows:
 
7    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
8    Sec. 201. Tax Imposed.
9    (a) In general. A tax measured by net income is hereby
10imposed on every individual, corporation, trust and estate for
11each taxable year ending after July 31, 1969 on the privilege
12of earning or receiving income in or as a resident of this
13State. Such tax shall be in addition to all other occupation or
14privilege taxes imposed by this State or by any municipal
15corporation or political subdivision thereof.
16    (b) Rates. The tax imposed by subsection (a) of this

 

 

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1Section shall be determined as follows, except as adjusted by
2subsection (d-1):
3        (1) In the case of an individual, trust or estate, for
4    taxable years ending prior to July 1, 1989, an amount equal
5    to 2 1/2% of the taxpayer's net income for the taxable
6    year.
7        (2) In the case of an individual, trust or estate, for
8    taxable years beginning prior to July 1, 1989 and ending
9    after June 30, 1989, an amount equal to the sum of (i) 2
10    1/2% of the taxpayer's net income for the period prior to
11    July 1, 1989, as calculated under Section 202.3, and (ii)
12    3% of the taxpayer's net income for the period after June
13    30, 1989, as calculated under Section 202.3.
14        (3) In the case of an individual, trust or estate, for
15    taxable years beginning after June 30, 1989, and ending
16    prior to January 1, 2011, an amount equal to 3% of the
17    taxpayer's net income for the taxable year.
18        (4) In the case of an individual, trust, or estate, for
19    taxable years beginning prior to January 1, 2011, and
20    ending after December 31, 2010, an amount equal to the sum
21    of (i) 3% of the taxpayer's net income for the period prior
22    to January 1, 2011, as calculated under Section 202.5, and
23    (ii) 5% of the taxpayer's net income for the period after
24    December 31, 2010, as calculated under Section 202.5.
25        (5) In the case of an individual, trust, or estate, for
26    taxable years beginning on or after January 1, 2011, and

 

 

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1    ending prior to January 1, 2015, an amount equal to 5% of
2    the taxpayer's net income for the taxable year.
3        (5.1) In the case of an individual, trust, or estate,
4    for taxable years beginning prior to January 1, 2015, and
5    ending after December 31, 2014, an amount equal to the sum
6    of (i) 5% of the taxpayer's net income for the period prior
7    to January 1, 2015, as calculated under Section 202.5, and
8    (ii) 3.75% of the taxpayer's net income for the period
9    after December 31, 2014, as calculated under Section 202.5.
10        (5.2) In the case of an individual, trust, or estate,
11    for taxable years beginning on or after January 1, 2015,
12    and ending prior to January 1, 2025, an amount equal to
13    3.75% of the taxpayer's net income for the taxable year.
14        (5.3) In the case of an individual, trust, or estate,
15    for taxable years beginning prior to January 1, 2025, and
16    ending after December 31, 2024, an amount equal to the sum
17    of (i) 3.75% of the taxpayer's net income for the period
18    prior to January 1, 2025, as calculated under Section
19    202.5, and (ii) 3.25% of the taxpayer's net income for the
20    period after December 31, 2024, as calculated under Section
21    202.5.
22        (5.4) In the case of an individual, trust, or estate,
23    for taxable years beginning on or after January 1, 2025, an
24    amount equal to 3.25% of the taxpayer's net income for the
25    taxable year.
26        (6) In the case of a corporation, for taxable years

 

 

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1    ending prior to July 1, 1989, an amount equal to 4% of the
2    taxpayer's net income for the taxable year.
3        (7) In the case of a corporation, for taxable years
4    beginning prior to July 1, 1989 and ending after June 30,
5    1989, an amount equal to the sum of (i) 4% of the
6    taxpayer's net income for the period prior to July 1, 1989,
7    as calculated under Section 202.3, and (ii) 4.8% of the
8    taxpayer's net income for the period after June 30, 1989,
9    as calculated under Section 202.3.
10        (8) In the case of a corporation, for taxable years
11    beginning after June 30, 1989, and ending prior to January
12    1, 2011, an amount equal to 4.8% of the taxpayer's net
13    income for the taxable year.
14        (9) In the case of a corporation, for taxable years
15    beginning prior to January 1, 2011, and ending after
16    December 31, 2010, an amount equal to the sum of (i) 4.8%
17    of the taxpayer's net income for the period prior to
18    January 1, 2011, as calculated under Section 202.5, and
19    (ii) 7% of the taxpayer's net income for the period after
20    December 31, 2010, as calculated under Section 202.5.
21        (10) In the case of a corporation, for taxable years
22    beginning on or after January 1, 2011, and ending prior to
23    January 1, 2015, an amount equal to 7% of the taxpayer's
24    net income for the taxable year.
25        (11) In the case of a corporation, for taxable years
26    beginning prior to January 1, 2015, and ending after

 

 

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1    December 31, 2014, an amount equal to the sum of (i) 7% of
2    the taxpayer's net income for the period prior to January
3    1, 2015, as calculated under Section 202.5, and (ii) 5.25%
4    of the taxpayer's net income for the period after December
5    31, 2014, as calculated under Section 202.5.
6        (12) In the case of a corporation, for taxable years
7    beginning on or after January 1, 2015, and ending prior to
8    January 1, 2025, an amount equal to 5.25% of the taxpayer's
9    net income for the taxable year.
10        (13) In the case of a corporation, for taxable years
11    beginning prior to January 1, 2025, and ending after
12    December 31, 2024, an amount equal to the sum of (i) 5.25%
13    of the taxpayer's net income for the period prior to
14    January 1, 2025, as calculated under Section 202.5, and
15    (ii) 4.8% of the taxpayer's net income for the period after
16    December 31, 2024, as calculated under Section 202.5.
17        (14) In the case of a corporation, for taxable years
18    beginning on or after January 1, 2025, an amount equal to
19    4.8% of the taxpayer's net income for the taxable year.
20    The rates under this subsection (b) are subject to the
21provisions of Section 201.5.
22    (c) Personal Property Tax Replacement Income Tax.
23Beginning on July 1, 1979 and thereafter, in addition to such
24income tax, there is also hereby imposed the Personal Property
25Tax Replacement Income Tax measured by net income on every
26corporation (including Subchapter S corporations), partnership

 

 

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1and trust, for each taxable year ending after June 30, 1979.
2Such taxes are imposed on the privilege of earning or receiving
3income in or as a resident of this State. The Personal Property
4Tax Replacement Income Tax shall be in addition to the income
5tax imposed by subsections (a) and (b) of this Section and in
6addition to all other occupation or privilege taxes imposed by
7this State or by any municipal corporation or political
8subdivision thereof.
9    (d) Additional Personal Property Tax Replacement Income
10Tax Rates. The personal property tax replacement income tax
11imposed by this subsection and subsection (c) of this Section
12in the case of a corporation, other than a Subchapter S
13corporation and except as adjusted by subsection (d-1), shall
14be an additional amount equal to 2.85% of such taxpayer's net
15income for the taxable year, except that beginning on January
161, 1981, and thereafter, the rate of 2.85% specified in this
17subsection shall be reduced to 2.5%, and in the case of a
18partnership, trust or a Subchapter S corporation shall be an
19additional amount equal to 1.5% of such taxpayer's net income
20for the taxable year.
21    (d-1) Rate reduction for certain foreign insurers. In the
22case of a foreign insurer, as defined by Section 35A-5 of the
23Illinois Insurance Code, whose state or country of domicile
24imposes on insurers domiciled in Illinois a retaliatory tax
25(excluding any insurer whose premiums from reinsurance assumed
26are 50% or more of its total insurance premiums as determined

 

 

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1under paragraph (2) of subsection (b) of Section 304, except
2that for purposes of this determination premiums from
3reinsurance do not include premiums from inter-affiliate
4reinsurance arrangements), beginning with taxable years ending
5on or after December 31, 1999, the sum of the rates of tax
6imposed by subsections (b) and (d) shall be reduced (but not
7increased) to the rate at which the total amount of tax imposed
8under this Act, net of all credits allowed under this Act,
9shall equal (i) the total amount of tax that would be imposed
10on the foreign insurer's net income allocable to Illinois for
11the taxable year by such foreign insurer's state or country of
12domicile if that net income were subject to all income taxes
13and taxes measured by net income imposed by such foreign
14insurer's state or country of domicile, net of all credits
15allowed or (ii) a rate of zero if no such tax is imposed on such
16income by the foreign insurer's state of domicile. For the
17purposes of this subsection (d-1), an inter-affiliate includes
18a mutual insurer under common management.
19        (1) For the purposes of subsection (d-1), in no event
20    shall the sum of the rates of tax imposed by subsections
21    (b) and (d) be reduced below the rate at which the sum of:
22            (A) the total amount of tax imposed on such foreign
23        insurer under this Act for a taxable year, net of all
24        credits allowed under this Act, plus
25            (B) the privilege tax imposed by Section 409 of the
26        Illinois Insurance Code, the fire insurance company

 

 

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1        tax imposed by Section 12 of the Fire Investigation
2        Act, and the fire department taxes imposed under
3        Section 11-10-1 of the Illinois Municipal Code,
4    equals 1.25% for taxable years ending prior to December 31,
5    2003, or 1.75% for taxable years ending on or after
6    December 31, 2003, of the net taxable premiums written for
7    the taxable year, as described by subsection (1) of Section
8    409 of the Illinois Insurance Code. This paragraph will in
9    no event increase the rates imposed under subsections (b)
10    and (d).
11        (2) Any reduction in the rates of tax imposed by this
12    subsection shall be applied first against the rates imposed
13    by subsection (b) and only after the tax imposed by
14    subsection (a) net of all credits allowed under this
15    Section other than the credit allowed under subsection (i)
16    has been reduced to zero, against the rates imposed by
17    subsection (d).
18    This subsection (d-1) is exempt from the provisions of
19Section 250.
20    (e) Investment credit. A taxpayer shall be allowed a credit
21against the Personal Property Tax Replacement Income Tax for
22investment in qualified property.
23        (1) A taxpayer shall be allowed a credit equal to .5%
24    of the basis of qualified property placed in service during
25    the taxable year, provided such property is placed in
26    service on or after July 1, 1984. There shall be allowed an

 

 

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1    additional credit equal to .5% of the basis of qualified
2    property placed in service during the taxable year,
3    provided such property is placed in service on or after
4    July 1, 1986, and the taxpayer's base employment within
5    Illinois has increased by 1% or more over the preceding
6    year as determined by the taxpayer's employment records
7    filed with the Illinois Department of Employment Security.
8    Taxpayers who are new to Illinois shall be deemed to have
9    met the 1% growth in base employment for the first year in
10    which they file employment records with the Illinois
11    Department of Employment Security. The provisions added to
12    this Section by Public Act 85-1200 (and restored by Public
13    Act 87-895) shall be construed as declaratory of existing
14    law and not as a new enactment. If, in any year, the
15    increase in base employment within Illinois over the
16    preceding year is less than 1%, the additional credit shall
17    be limited to that percentage times a fraction, the
18    numerator of which is .5% and the denominator of which is
19    1%, but shall not exceed .5%. The investment credit shall
20    not be allowed to the extent that it would reduce a
21    taxpayer's liability in any tax year below zero, nor may
22    any credit for qualified property be allowed for any year
23    other than the year in which the property was placed in
24    service in Illinois. For tax years ending on or after
25    December 31, 1987, and on or before December 31, 1988, the
26    credit shall be allowed for the tax year in which the

 

 

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1    property is placed in service, or, if the amount of the
2    credit exceeds the tax liability for that year, whether it
3    exceeds the original liability or the liability as later
4    amended, such excess may be carried forward and applied to
5    the tax liability of the 5 taxable years following the
6    excess credit years if the taxpayer (i) makes investments
7    which cause the creation of a minimum of 2,000 full-time
8    equivalent jobs in Illinois, (ii) is located in an
9    enterprise zone established pursuant to the Illinois
10    Enterprise Zone Act and (iii) is certified by the
11    Department of Commerce and Community Affairs (now
12    Department of Commerce and Economic Opportunity) as
13    complying with the requirements specified in clause (i) and
14    (ii) by July 1, 1986. The Department of Commerce and
15    Community Affairs (now Department of Commerce and Economic
16    Opportunity) shall notify the Department of Revenue of all
17    such certifications immediately. For tax years ending
18    after December 31, 1988, the credit shall be allowed for
19    the tax year in which the property is placed in service,
20    or, if the amount of the credit exceeds the tax liability
21    for that year, whether it exceeds the original liability or
22    the liability as later amended, such excess may be carried
23    forward and applied to the tax liability of the 5 taxable
24    years following the excess credit years. The credit shall
25    be applied to the earliest year for which there is a
26    liability. If there is credit from more than one tax year

 

 

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1    that is available to offset a liability, earlier credit
2    shall be applied first.
3        (2) The term "qualified property" means property
4    which:
5            (A) is tangible, whether new or used, including
6        buildings and structural components of buildings and
7        signs that are real property, but not including land or
8        improvements to real property that are not a structural
9        component of a building such as landscaping, sewer
10        lines, local access roads, fencing, parking lots, and
11        other appurtenances;
12            (B) is depreciable pursuant to Section 167 of the
13        Internal Revenue Code, except that "3-year property"
14        as defined in Section 168(c)(2)(A) of that Code is not
15        eligible for the credit provided by this subsection
16        (e);
17            (C) is acquired by purchase as defined in Section
18        179(d) of the Internal Revenue Code;
19            (D) is used in Illinois by a taxpayer who is
20        primarily engaged in manufacturing, or in mining coal
21        or fluorite, or in retailing, or was placed in service
22        on or after July 1, 2006 in a River Edge Redevelopment
23        Zone established pursuant to the River Edge
24        Redevelopment Zone Act; and
25            (E) has not previously been used in Illinois in
26        such a manner and by such a person as would qualify for

 

 

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1        the credit provided by this subsection (e) or
2        subsection (f).
3        (3) For purposes of this subsection (e),
4    "manufacturing" means the material staging and production
5    of tangible personal property by procedures commonly
6    regarded as manufacturing, processing, fabrication, or
7    assembling which changes some existing material into new
8    shapes, new qualities, or new combinations. For purposes of
9    this subsection (e) the term "mining" shall have the same
10    meaning as the term "mining" in Section 613(c) of the
11    Internal Revenue Code. For purposes of this subsection (e),
12    the term "retailing" means the sale of tangible personal
13    property for use or consumption and not for resale, or
14    services rendered in conjunction with the sale of tangible
15    personal property for use or consumption and not for
16    resale. For purposes of this subsection (e), "tangible
17    personal property" has the same meaning as when that term
18    is used in the Retailers' Occupation Tax Act, and, for
19    taxable years ending after December 31, 2008, does not
20    include the generation, transmission, or distribution of
21    electricity.
22        (4) The basis of qualified property shall be the basis
23    used to compute the depreciation deduction for federal
24    income tax purposes.
25        (5) If the basis of the property for federal income tax
26    depreciation purposes is increased after it has been placed

 

 

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1    in service in Illinois by the taxpayer, the amount of such
2    increase shall be deemed property placed in service on the
3    date of such increase in basis.
4        (6) The term "placed in service" shall have the same
5    meaning as under Section 46 of the Internal Revenue Code.
6        (7) If during any taxable year, any property ceases to
7    be qualified property in the hands of the taxpayer within
8    48 months after being placed in service, or the situs of
9    any qualified property is moved outside Illinois within 48
10    months after being placed in service, the Personal Property
11    Tax Replacement Income Tax for such taxable year shall be
12    increased. Such increase shall be determined by (i)
13    recomputing the investment credit which would have been
14    allowed for the year in which credit for such property was
15    originally allowed by eliminating such property from such
16    computation and, (ii) subtracting such recomputed credit
17    from the amount of credit previously allowed. For the
18    purposes of this paragraph (7), a reduction of the basis of
19    qualified property resulting from a redetermination of the
20    purchase price shall be deemed a disposition of qualified
21    property to the extent of such reduction.
22        (8) Unless the investment credit is extended by law,
23    the basis of qualified property shall not include costs
24    incurred after December 31, 2018, except for costs incurred
25    pursuant to a binding contract entered into on or before
26    December 31, 2018.

 

 

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1        (9) Each taxable year ending before December 31, 2000,
2    a partnership may elect to pass through to its partners the
3    credits to which the partnership is entitled under this
4    subsection (e) for the taxable year. A partner may use the
5    credit allocated to him or her under this paragraph only
6    against the tax imposed in subsections (c) and (d) of this
7    Section. If the partnership makes that election, those
8    credits shall be allocated among the partners in the
9    partnership in accordance with the rules set forth in
10    Section 704(b) of the Internal Revenue Code, and the rules
11    promulgated under that Section, and the allocated amount of
12    the credits shall be allowed to the partners for that
13    taxable year. The partnership shall make this election on
14    its Personal Property Tax Replacement Income Tax return for
15    that taxable year. The election to pass through the credits
16    shall be irrevocable.
17        For taxable years ending on or after December 31, 2000,
18    a partner that qualifies its partnership for a subtraction
19    under subparagraph (I) of paragraph (2) of subsection (d)
20    of Section 203 or a shareholder that qualifies a Subchapter
21    S corporation for a subtraction under subparagraph (S) of
22    paragraph (2) of subsection (b) of Section 203 shall be
23    allowed a credit under this subsection (e) equal to its
24    share of the credit earned under this subsection (e) during
25    the taxable year by the partnership or Subchapter S
26    corporation, determined in accordance with the

 

 

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1    determination of income and distributive share of income
2    under Sections 702 and 704 and Subchapter S of the Internal
3    Revenue Code. This paragraph is exempt from the provisions
4    of Section 250.
5    (f) Investment credit; Enterprise Zone; River Edge
6Redevelopment Zone.
7        (1) A taxpayer shall be allowed a credit against the
8    tax imposed by subsections (a) and (b) of this Section for
9    investment in qualified property which is placed in service
10    in an Enterprise Zone created pursuant to the Illinois
11    Enterprise Zone Act or, for property placed in service on
12    or after July 1, 2006, a River Edge Redevelopment Zone
13    established pursuant to the River Edge Redevelopment Zone
14    Act. For partners, shareholders of Subchapter S
15    corporations, and owners of limited liability companies,
16    if the liability company is treated as a partnership for
17    purposes of federal and State income taxation, there shall
18    be allowed a credit under this subsection (f) to be
19    determined in accordance with the determination of income
20    and distributive share of income under Sections 702 and 704
21    and Subchapter S of the Internal Revenue Code. The credit
22    shall be .5% of the basis for such property. The credit
23    shall be available only in the taxable year in which the
24    property is placed in service in the Enterprise Zone or
25    River Edge Redevelopment Zone and shall not be allowed to
26    the extent that it would reduce a taxpayer's liability for

 

 

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1    the tax imposed by subsections (a) and (b) of this Section
2    to below zero. For tax years ending on or after December
3    31, 1985, the credit shall be allowed for the tax year in
4    which the property is placed in service, or, if the amount
5    of the credit exceeds the tax liability for that year,
6    whether it exceeds the original liability or the liability
7    as later amended, such excess may be carried forward and
8    applied to the tax liability of the 5 taxable years
9    following the excess credit year. The credit shall be
10    applied to the earliest year for which there is a
11    liability. If there is credit from more than one tax year
12    that is available to offset a liability, the credit
13    accruing first in time shall be applied first.
14        (2) The term qualified property means property which:
15            (A) is tangible, whether new or used, including
16        buildings and structural components of buildings;
17            (B) is depreciable pursuant to Section 167 of the
18        Internal Revenue Code, except that "3-year property"
19        as defined in Section 168(c)(2)(A) of that Code is not
20        eligible for the credit provided by this subsection
21        (f);
22            (C) is acquired by purchase as defined in Section
23        179(d) of the Internal Revenue Code;
24            (D) is used in the Enterprise Zone or River Edge
25        Redevelopment Zone by the taxpayer; and
26            (E) has not been previously used in Illinois in

 

 

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1        such a manner and by such a person as would qualify for
2        the credit provided by this subsection (f) or
3        subsection (e).
4        (3) The basis of qualified property shall be the basis
5    used to compute the depreciation deduction for federal
6    income tax purposes.
7        (4) If the basis of the property for federal income tax
8    depreciation purposes is increased after it has been placed
9    in service in the Enterprise Zone or River Edge
10    Redevelopment Zone by the taxpayer, the amount of such
11    increase shall be deemed property placed in service on the
12    date of such increase in basis.
13        (5) The term "placed in service" shall have the same
14    meaning as under Section 46 of the Internal Revenue Code.
15        (6) If during any taxable year, any property ceases to
16    be qualified property in the hands of the taxpayer within
17    48 months after being placed in service, or the situs of
18    any qualified property is moved outside the Enterprise Zone
19    or River Edge Redevelopment Zone within 48 months after
20    being placed in service, the tax imposed under subsections
21    (a) and (b) of this Section for such taxable year shall be
22    increased. Such increase shall be determined by (i)
23    recomputing the investment credit which would have been
24    allowed for the year in which credit for such property was
25    originally allowed by eliminating such property from such
26    computation, and (ii) subtracting such recomputed credit

 

 

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1    from the amount of credit previously allowed. For the
2    purposes of this paragraph (6), a reduction of the basis of
3    qualified property resulting from a redetermination of the
4    purchase price shall be deemed a disposition of qualified
5    property to the extent of such reduction.
6        (7) There shall be allowed an additional credit equal
7    to 0.5% of the basis of qualified property placed in
8    service during the taxable year in a River Edge
9    Redevelopment Zone, provided such property is placed in
10    service on or after July 1, 2006, and the taxpayer's base
11    employment within Illinois has increased by 1% or more over
12    the preceding year as determined by the taxpayer's
13    employment records filed with the Illinois Department of
14    Employment Security. Taxpayers who are new to Illinois
15    shall be deemed to have met the 1% growth in base
16    employment for the first year in which they file employment
17    records with the Illinois Department of Employment
18    Security. If, in any year, the increase in base employment
19    within Illinois over the preceding year is less than 1%,
20    the additional credit shall be limited to that percentage
21    times a fraction, the numerator of which is 0.5% and the
22    denominator of which is 1%, but shall not exceed 0.5%.
23    (g) (Blank).
24    (h) Investment credit; High Impact Business.
25        (1) Subject to subsections (b) and (b-5) of Section 5.5
26    of the Illinois Enterprise Zone Act, a taxpayer shall be

 

 

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1    allowed a credit against the tax imposed by subsections (a)
2    and (b) of this Section for investment in qualified
3    property which is placed in service by a Department of
4    Commerce and Economic Opportunity designated High Impact
5    Business. The credit shall be .5% of the basis for such
6    property. The credit shall not be available (i) until the
7    minimum investments in qualified property set forth in
8    subdivision (a)(3)(A) of Section 5.5 of the Illinois
9    Enterprise Zone Act have been satisfied or (ii) until the
10    time authorized in subsection (b-5) of the Illinois
11    Enterprise Zone Act for entities designated as High Impact
12    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
13    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
14    Act, and shall not be allowed to the extent that it would
15    reduce a taxpayer's liability for the tax imposed by
16    subsections (a) and (b) of this Section to below zero. The
17    credit applicable to such investments shall be taken in the
18    taxable year in which such investments have been completed.
19    The credit for additional investments beyond the minimum
20    investment by a designated high impact business authorized
21    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
22    Enterprise Zone Act shall be available only in the taxable
23    year in which the property is placed in service and shall
24    not be allowed to the extent that it would reduce a
25    taxpayer's liability for the tax imposed by subsections (a)
26    and (b) of this Section to below zero. For tax years ending

 

 

10000SB0009ham001- 20 -LRB100 06347 HLH 27036 a

1    on or after December 31, 1987, the credit shall be allowed
2    for the tax year in which the property is placed in
3    service, or, if the amount of the credit exceeds the tax
4    liability for that year, whether it exceeds the original
5    liability or the liability as later amended, such excess
6    may be carried forward and applied to the tax liability of
7    the 5 taxable years following the excess credit year. The
8    credit shall be applied to the earliest year for which
9    there is a liability. If there is credit from more than one
10    tax year that is available to offset a liability, the
11    credit accruing first in time shall be applied first.
12        Changes made in this subdivision (h)(1) by Public Act
13    88-670 restore changes made by Public Act 85-1182 and
14    reflect existing law.
15        (2) The term qualified property means property which:
16            (A) is tangible, whether new or used, including
17        buildings and structural components of buildings;
18            (B) is depreciable pursuant to Section 167 of the
19        Internal Revenue Code, except that "3-year property"
20        as defined in Section 168(c)(2)(A) of that Code is not
21        eligible for the credit provided by this subsection
22        (h);
23            (C) is acquired by purchase as defined in Section
24        179(d) of the Internal Revenue Code; and
25            (D) is not eligible for the Enterprise Zone
26        Investment Credit provided by subsection (f) of this

 

 

10000SB0009ham001- 21 -LRB100 06347 HLH 27036 a

1        Section.
2        (3) The basis of qualified property shall be the basis
3    used to compute the depreciation deduction for federal
4    income tax purposes.
5        (4) If the basis of the property for federal income tax
6    depreciation purposes is increased after it has been placed
7    in service in a federally designated Foreign Trade Zone or
8    Sub-Zone located in Illinois by the taxpayer, the amount of
9    such increase shall be deemed property placed in service on
10    the date of such increase in basis.
11        (5) The term "placed in service" shall have the same
12    meaning as under Section 46 of the Internal Revenue Code.
13        (6) If during any taxable year ending on or before
14    December 31, 1996, any property ceases to be qualified
15    property in the hands of the taxpayer within 48 months
16    after being placed in service, or the situs of any
17    qualified property is moved outside Illinois within 48
18    months after being placed in service, the tax imposed under
19    subsections (a) and (b) of this Section for such taxable
20    year shall be increased. Such increase shall be determined
21    by (i) recomputing the investment credit which would have
22    been allowed for the year in which credit for such property
23    was originally allowed by eliminating such property from
24    such computation, and (ii) subtracting such recomputed
25    credit from the amount of credit previously allowed. For
26    the purposes of this paragraph (6), a reduction of the

 

 

10000SB0009ham001- 22 -LRB100 06347 HLH 27036 a

1    basis of qualified property resulting from a
2    redetermination of the purchase price shall be deemed a
3    disposition of qualified property to the extent of such
4    reduction.
5        (7) Beginning with tax years ending after December 31,
6    1996, if a taxpayer qualifies for the credit under this
7    subsection (h) and thereby is granted a tax abatement and
8    the taxpayer relocates its entire facility in violation of
9    the explicit terms and length of the contract under Section
10    18-183 of the Property Tax Code, the tax imposed under
11    subsections (a) and (b) of this Section shall be increased
12    for the taxable year in which the taxpayer relocated its
13    facility by an amount equal to the amount of credit
14    received by the taxpayer under this subsection (h).
15    (i) Credit for Personal Property Tax Replacement Income
16Tax. For tax years ending prior to December 31, 2003, a credit
17shall be allowed against the tax imposed by subsections (a) and
18(b) of this Section for the tax imposed by subsections (c) and
19(d) of this Section. This credit shall be computed by
20multiplying the tax imposed by subsections (c) and (d) of this
21Section by a fraction, the numerator of which is base income
22allocable to Illinois and the denominator of which is Illinois
23base income, and further multiplying the product by the tax
24rate imposed by subsections (a) and (b) of this Section.
25    Any credit earned on or after December 31, 1986 under this
26subsection which is unused in the year the credit is computed

 

 

10000SB0009ham001- 23 -LRB100 06347 HLH 27036 a

1because it exceeds the tax liability imposed by subsections (a)
2and (b) for that year (whether it exceeds the original
3liability or the liability as later amended) may be carried
4forward and applied to the tax liability imposed by subsections
5(a) and (b) of the 5 taxable years following the excess credit
6year, provided that no credit may be carried forward to any
7year ending on or after December 31, 2003. This credit shall be
8applied first to the earliest year for which there is a
9liability. If there is a credit under this subsection from more
10than one tax year that is available to offset a liability the
11earliest credit arising under this subsection shall be applied
12first.
13    If, during any taxable year ending on or after December 31,
141986, the tax imposed by subsections (c) and (d) of this
15Section for which a taxpayer has claimed a credit under this
16subsection (i) is reduced, the amount of credit for such tax
17shall also be reduced. Such reduction shall be determined by
18recomputing the credit to take into account the reduced tax
19imposed by subsections (c) and (d). If any portion of the
20reduced amount of credit has been carried to a different
21taxable year, an amended return shall be filed for such taxable
22year to reduce the amount of credit claimed.
23    (j) Training expense credit. Beginning with tax years
24ending on or after December 31, 1986 and prior to December 31,
252003, a taxpayer shall be allowed a credit against the tax
26imposed by subsections (a) and (b) under this Section for all

 

 

10000SB0009ham001- 24 -LRB100 06347 HLH 27036 a

1amounts paid or accrued, on behalf of all persons employed by
2the taxpayer in Illinois or Illinois residents employed outside
3of Illinois by a taxpayer, for educational or vocational
4training in semi-technical or technical fields or semi-skilled
5or skilled fields, which were deducted from gross income in the
6computation of taxable income. The credit against the tax
7imposed by subsections (a) and (b) shall be 1.6% of such
8training expenses. For partners, shareholders of subchapter S
9corporations, and owners of limited liability companies, if the
10liability company is treated as a partnership for purposes of
11federal and State income taxation, there shall be allowed a
12credit under this subsection (j) to be determined in accordance
13with the determination of income and distributive share of
14income under Sections 702 and 704 and subchapter S of the
15Internal Revenue Code.
16    Any credit allowed under this subsection which is unused in
17the year the credit is earned may be carried forward to each of
18the 5 taxable years following the year for which the credit is
19first computed until it is used. This credit shall be applied
20first to the earliest year for which there is a liability. If
21there is a credit under this subsection from more than one tax
22year that is available to offset a liability the earliest
23credit arising under this subsection shall be applied first. No
24carryforward credit may be claimed in any tax year ending on or
25after December 31, 2003.
26    (k) Research and development credit. For tax years ending

 

 

10000SB0009ham001- 25 -LRB100 06347 HLH 27036 a

1after July 1, 1990 and prior to December 31, 2003, and
2beginning again for tax years ending on or after December 31,
32004, and ending prior to January 1, 2016, a taxpayer shall be
4allowed a credit against the tax imposed by subsections (a) and
5(b) of this Section for increasing research activities in this
6State. The credit allowed against the tax imposed by
7subsections (a) and (b) shall be equal to 6 1/2% of the
8qualifying expenditures for increasing research activities in
9this State. For partners, shareholders of subchapter S
10corporations, and owners of limited liability companies, if the
11liability company is treated as a partnership for purposes of
12federal and State income taxation, there shall be allowed a
13credit under this subsection to be determined in accordance
14with the determination of income and distributive share of
15income under Sections 702 and 704 and subchapter S of the
16Internal Revenue Code.
17    For purposes of this subsection, "qualifying expenditures"
18means the qualifying expenditures as defined for the federal
19credit for increasing research activities which would be
20allowable under Section 41 of the Internal Revenue Code and
21which are conducted in this State, "qualifying expenditures for
22increasing research activities in this State" means the excess
23of qualifying expenditures for the taxable year in which
24incurred over qualifying expenditures for the base period,
25"qualifying expenditures for the base period" means (i) for tax
26years ending prior to December 31, 2017, the average of the

 

 

10000SB0009ham001- 26 -LRB100 06347 HLH 27036 a

1qualifying expenditures for each year in the base period; and
2(ii) for tax years ending on or after December 31, 2017, 50% of
3the average of the qualifying expenditures for each year in the
4base period, and "base period" means the 3 taxable years
5immediately preceding the taxable year for which the
6determination is being made.
7    Any credit in excess of the tax liability for the taxable
8year may be carried forward. A taxpayer may elect to have the
9unused credit shown on its final completed return carried over
10as a credit against the tax liability for the following 5
11taxable years or until it has been fully used, whichever occurs
12first; provided that no credit earned in a tax year ending
13prior to December 31, 2003 may be carried forward to any year
14ending on or after December 31, 2003.
15    If an unused credit is carried forward to a given year from
162 or more earlier years, that credit arising in the earliest
17year will be applied first against the tax liability for the
18given year. If a tax liability for the given year still
19remains, the credit from the next earliest year will then be
20applied, and so on, until all credits have been used or no tax
21liability for the given year remains. Any remaining unused
22credit or credits then will be carried forward to the next
23following year in which a tax liability is incurred, except
24that no credit can be carried forward to a year which is more
25than 5 years after the year in which the expense for which the
26credit is given was incurred.

 

 

10000SB0009ham001- 27 -LRB100 06347 HLH 27036 a

1    No inference shall be drawn from this amendatory Act of the
291st General Assembly in construing this Section for taxable
3years beginning before January 1, 1999.
4    This subsection (k) is exempt from the provisions of
5Section 250.
6    It is the intent of the General Assembly that the research
7and development credit under this subsection (k) shall apply
8continuously for all tax years ending on or after December 31,
92004, including, but not limited to, the period beginning on
10January 1, 2016 and ending on the effective date of this
11amendatory Act of the 100th General Assembly. All actions taken
12in reliance on the continuation of the credit under this
13subsection (k) by any taxpayer are hereby validated.
14    (l) Environmental Remediation Tax Credit.
15        (i) For tax years ending after December 31, 1997 and on
16    or before December 31, 2001, a taxpayer shall be allowed a
17    credit against the tax imposed by subsections (a) and (b)
18    of this Section for certain amounts paid for unreimbursed
19    eligible remediation costs, as specified in this
20    subsection. For purposes of this Section, "unreimbursed
21    eligible remediation costs" means costs approved by the
22    Illinois Environmental Protection Agency ("Agency") under
23    Section 58.14 of the Environmental Protection Act that were
24    paid in performing environmental remediation at a site for
25    which a No Further Remediation Letter was issued by the
26    Agency and recorded under Section 58.10 of the

 

 

10000SB0009ham001- 28 -LRB100 06347 HLH 27036 a

1    Environmental Protection Act. The credit must be claimed
2    for the taxable year in which Agency approval of the
3    eligible remediation costs is granted. The credit is not
4    available to any taxpayer if the taxpayer or any related
5    party caused or contributed to, in any material respect, a
6    release of regulated substances on, in, or under the site
7    that was identified and addressed by the remedial action
8    pursuant to the Site Remediation Program of the
9    Environmental Protection Act. After the Pollution Control
10    Board rules are adopted pursuant to the Illinois
11    Administrative Procedure Act for the administration and
12    enforcement of Section 58.9 of the Environmental
13    Protection Act, determinations as to credit availability
14    for purposes of this Section shall be made consistent with
15    those rules. For purposes of this Section, "taxpayer"
16    includes a person whose tax attributes the taxpayer has
17    succeeded to under Section 381 of the Internal Revenue Code
18    and "related party" includes the persons disallowed a
19    deduction for losses by paragraphs (b), (c), and (f)(1) of
20    Section 267 of the Internal Revenue Code by virtue of being
21    a related taxpayer, as well as any of its partners. The
22    credit allowed against the tax imposed by subsections (a)
23    and (b) shall be equal to 25% of the unreimbursed eligible
24    remediation costs in excess of $100,000 per site, except
25    that the $100,000 threshold shall not apply to any site
26    contained in an enterprise zone as determined by the

 

 

10000SB0009ham001- 29 -LRB100 06347 HLH 27036 a

1    Department of Commerce and Community Affairs (now
2    Department of Commerce and Economic Opportunity). The
3    total credit allowed shall not exceed $40,000 per year with
4    a maximum total of $150,000 per site. For partners and
5    shareholders of subchapter S corporations, there shall be
6    allowed a credit under this subsection to be determined in
7    accordance with the determination of income and
8    distributive share of income under Sections 702 and 704 and
9    subchapter S of the Internal Revenue Code.
10        (ii) A credit allowed under this subsection that is
11    unused in the year the credit is earned may be carried
12    forward to each of the 5 taxable years following the year
13    for which the credit is first earned until it is used. The
14    term "unused credit" does not include any amounts of
15    unreimbursed eligible remediation costs in excess of the
16    maximum credit per site authorized under paragraph (i).
17    This credit shall be applied first to the earliest year for
18    which there is a liability. If there is a credit under this
19    subsection from more than one tax year that is available to
20    offset a liability, the earliest credit arising under this
21    subsection shall be applied first. A credit allowed under
22    this subsection may be sold to a buyer as part of a sale of
23    all or part of the remediation site for which the credit
24    was granted. The purchaser of a remediation site and the
25    tax credit shall succeed to the unused credit and remaining
26    carry-forward period of the seller. To perfect the

 

 

10000SB0009ham001- 30 -LRB100 06347 HLH 27036 a

1    transfer, the assignor shall record the transfer in the
2    chain of title for the site and provide written notice to
3    the Director of the Illinois Department of Revenue of the
4    assignor's intent to sell the remediation site and the
5    amount of the tax credit to be transferred as a portion of
6    the sale. In no event may a credit be transferred to any
7    taxpayer if the taxpayer or a related party would not be
8    eligible under the provisions of subsection (i).
9        (iii) For purposes of this Section, the term "site"
10    shall have the same meaning as under Section 58.2 of the
11    Environmental Protection Act.
12    (m) Education expense credit. Beginning with tax years
13ending after December 31, 1999, a taxpayer who is the custodian
14of one or more qualifying pupils shall be allowed a credit
15against the tax imposed by subsections (a) and (b) of this
16Section for qualified education expenses incurred on behalf of
17the qualifying pupils. The credit shall be equal to 25% of
18qualified education expenses, but in no event may the total
19credit under this subsection claimed by a family that is the
20custodian of qualifying pupils exceed (i) $500 for tax years
21ending prior to December 31, 2017, and (ii) $750 for tax years
22ending on or after December 31, 2017. In no event shall a
23credit under this subsection reduce the taxpayer's liability
24under this Act to less than zero. Notwithstanding any other
25provision of law, for taxable years beginning on or after
26January 1, 2018, no taxpayer may claim a credit under this

 

 

10000SB0009ham001- 31 -LRB100 06347 HLH 27036 a

1subsection (m) if the taxpayer's adjusted gross income for the
2taxable year exceeds (i) $500,000, in the case of spouses
3filing a joint federal tax return or (ii) $250,000, in the case
4of all other taxpayers. This subsection is exempt from the
5provisions of Section 250 of this Act.
6    For purposes of this subsection:
7    "Qualifying pupils" means individuals who (i) are
8residents of the State of Illinois, (ii) are under the age of
921 at the close of the school year for which a credit is
10sought, and (iii) during the school year for which a credit is
11sought were full-time pupils enrolled in a kindergarten through
12twelfth grade education program at any school, as defined in
13this subsection.
14    "Qualified education expense" means the amount incurred on
15behalf of a qualifying pupil in excess of $250 for tuition,
16book fees, and lab fees at the school in which the pupil is
17enrolled during the regular school year.
18    "School" means any public or nonpublic elementary or
19secondary school in Illinois that is in compliance with Title
20VI of the Civil Rights Act of 1964 and attendance at which
21satisfies the requirements of Section 26-1 of the School Code,
22except that nothing shall be construed to require a child to
23attend any particular public or nonpublic school to qualify for
24the credit under this Section.
25    "Custodian" means, with respect to qualifying pupils, an
26Illinois resident who is a parent, the parents, a legal

 

 

10000SB0009ham001- 32 -LRB100 06347 HLH 27036 a

1guardian, or the legal guardians of the qualifying pupils.
2    (n) River Edge Redevelopment Zone site remediation tax
3credit.
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

 

 

10000SB0009ham001- 33 -LRB100 06347 HLH 27036 a

1    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

 

 

10000SB0009ham001- 34 -LRB100 06347 HLH 27036 a

1    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    (o) For each of taxable years during the Compassionate Use
14of Medical Cannabis Pilot Program, a surcharge is imposed on
15all taxpayers on income arising from the sale or exchange of
16capital assets, depreciable business property, real property
17used in the trade or business, and Section 197 intangibles of
18an organization registrant under the Compassionate Use of
19Medical Cannabis Pilot Program Act. The amount of the surcharge
20is equal to the amount of federal income tax liability for the
21taxable year attributable to those sales and exchanges. The
22surcharge imposed does not apply if:
23        (1) the medical cannabis cultivation center
24    registration, medical cannabis dispensary registration, or
25    the property of a registration is transferred as a result
26    of any of the following:

 

 

10000SB0009ham001- 35 -LRB100 06347 HLH 27036 a

1            (A) bankruptcy, a receivership, or a debt
2        adjustment initiated by or against the initial
3        registration or the substantial owners of the initial
4        registration;
5            (B) cancellation, revocation, or termination of
6        any registration by the Illinois Department of Public
7        Health;
8            (C) a determination by the Illinois Department of
9        Public Health that transfer of the registration is in
10        the best interests of Illinois qualifying patients as
11        defined by the Compassionate Use of Medical Cannabis
12        Pilot Program Act;
13            (D) the death of an owner of the equity interest in
14        a registrant;
15            (E) the acquisition of a controlling interest in
16        the stock or substantially all of the assets of a
17        publicly traded company;
18            (F) a transfer by a parent company to a wholly
19        owned subsidiary; or
20            (G) the transfer or sale to or by one person to
21        another person where both persons were initial owners
22        of the registration when the registration was issued;
23        or
24        (2) the cannabis cultivation center registration,
25    medical cannabis dispensary registration, or the
26    controlling interest in a registrant's property is

 

 

10000SB0009ham001- 36 -LRB100 06347 HLH 27036 a

1    transferred in a transaction to lineal descendants in which
2    no gain or loss is recognized or as a result of a
3    transaction in accordance with Section 351 of the Internal
4    Revenue Code in which no gain or loss is recognized.
5(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
6eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; 98-756,
7eff. 7-16-14.)
 
8    (35 ILCS 5/222)
9    Sec. 222. Live theater production credit.
10    (a) For tax years beginning on or after January 1, 2012 and
11beginning prior to January 1, 2027, a taxpayer who has received
12a tax credit award under the Live Theater Production Tax Credit
13Act is entitled to a credit against the taxes imposed under
14subsections (a) and (b) of Section 201 of this Act in an amount
15determined under that Act by the Department of Commerce and
16Economic Opportunity.
17    (b) If the taxpayer is a partnership, limited liability
18partnership, limited liability company, or Subchapter S
19corporation, the tax credit award is allowed to the partners,
20unit holders, or shareholders in accordance with the
21determination of income and distributive share of income under
22Sections 702 and 704 and Subchapter S of the Internal Revenue
23Code.
24    (c) A sale, assignment, or transfer of the tax credit award
25may be made by the taxpayer earning the credit within one year

 

 

10000SB0009ham001- 37 -LRB100 06347 HLH 27036 a

1after the credit is awarded in accordance with rules adopted by
2the Department of Commerce and Economic Opportunity.
3    (d) The Department of Revenue, in cooperation with the
4Department of Commerce and Economic Opportunity, shall adopt
5rules to enforce and administer the provisions of this Section.
6    (e) The tax credit award may not be carried back. If the
7amount of the credit exceeds the tax liability for the year,
8the excess may be carried forward and applied to the tax
9liability of the 5 tax years following the excess credit year.
10The tax credit award shall be applied to the earliest year for
11which there is a tax liability. If there are credits from more
12than one tax year that are available to offset liability, the
13earlier credit shall be applied first. In no event may a credit
14under this Section reduce the taxpayer's liability to less than
15zero.
16(Source: P.A. 97-636, eff. 6-1-12.)
 
17    (35 ILCS 5/225 new)
18    Sec. 225. Credit for instructional materials and supplies.
19For taxable years beginning on and after January 1, 2017, a
20taxpayer shall be allowed a credit in the amount paid by the
21taxpayer during the taxable year for instructional materials
22and supplies with respect to classroom based instruction in a
23qualified school, or $250, whichever is less, provided that the
24taxpayer is a teacher, instructor, counselor, principal, or
25aide in a qualified school for at least 900 hours during a

 

 

10000SB0009ham001- 38 -LRB100 06347 HLH 27036 a

1school year.
2    The credit may not be carried back and may not reduce the
3taxpayer's liability to less than zero. If the amount of the
4credit exceeds the tax liability for the year, the excess may
5be carried forward and applied to the tax liability of the 5
6taxable years following the excess credit year. The tax credit
7shall be applied to the earliest year for which there is a tax
8liability. If there are credits for more than one year that are
9available to offset a liability, the earlier credit shall be
10applied first.
11    For purposes of this Section, the term "materials and
12supplies" means amounts paid for instructional materials or
13supplies that are designated for classroom use in any qualified
14school. For purposes of this Section, the term "qualified
15school" means a public school or non-public school located in
16Illinois.
17    This Section is exempt from the provisions of Section 250.
 
18    Section 10. The Film Production Services Tax Credit Act of
192008 is amended by changing Section 42 as follows:
 
20    (35 ILCS 16/42)
21    Sec. 42. Sunset of credits. The application of credits
22awarded pursuant to this Act shall be limited by a reasonable
23and appropriate sunset date. A taxpayer shall not be entitled
24to take a credit awarded pursuant to this Act for tax years

 

 

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1beginning on or after January 1, 2027 10 years after the
2effective date of this amendatory Act of the 97th General
3Assembly. After the initial 10-year sunset, the General
4Assembly may extend the sunset date by 5-year intervals.
5(Source: P.A. 97-2, eff. 5-6-11; 97-3, eff. 5-6-11.)
 
6    Section 15. The Illinois False Claims Act is amended by
7changing Section 3 as follows:
 
8    (740 ILCS 175/3)  (from Ch. 127, par. 4103)
9    Sec. 3. False claims.
10    (a) Liability for certain acts.
11        (1) In general, any person who:
12            (A) knowingly presents, or causes to be presented,
13        a false or fraudulent claim for payment or approval;
14            (B) knowingly makes, uses, or causes to be made or
15        used, a false record or statement material to a false
16        or fraudulent claim;
17            (C) conspires to commit a violation of
18        subparagraph (A), (B), (D), (E), (F), or (G);
19            (D) has possession, custody, or control of
20        property or money used, or to be used, by the State and
21        knowingly delivers, or causes to be delivered, less
22        than all the money or property;
23            (E) is authorized to make or deliver a document
24        certifying receipt of property used, or to be used, by

 

 

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1        the State and, intending to defraud the State, makes or
2        delivers the receipt without completely knowing that
3        the information on the receipt is true;
4             (F) knowingly buys, or receives as a pledge of an
5        obligation or debt, public property from an officer or
6        employee of the State, or a member of the Guard, who
7        lawfully may not sell or pledge property; or
8            (G) knowingly makes, uses, or causes to be made or
9        used, a false record or statement material to an
10        obligation to pay or transmit money or property to the
11        State, or knowingly conceals or knowingly and
12        improperly avoids or decreases an obligation to pay or
13        transmit money or property to the State,
14    is liable to the State for a civil penalty of not less than
15    $5,500 and not more than $11,000, plus 3 times the amount
16    of damages which the State sustains because of the act of
17    that person. The penalties in this Section are intended to
18    be remedial rather than punitive, and shall not preclude,
19    nor be precluded by, a criminal prosecution for the same
20    conduct.
21        (2) A person violating this subsection shall also be
22    liable to the State for the costs of a civil action brought
23    to recover any such penalty or damages.
24    (b) Definitions. For purposes of this Section:
25        (1) The terms "knowing" and "knowingly":
26            (A) mean that a person, with respect to

 

 

10000SB0009ham001- 41 -LRB100 06347 HLH 27036 a

1        information:
2                (i) has actual knowledge of the information;
3                (ii) acts in deliberate ignorance of the truth
4            or falsity of the information; or
5                (iii) acts in reckless disregard of the truth
6            or falsity of the information, and
7            (B) require no proof of specific intent to defraud.
8        (2) The term "claim":
9            (A) means any request or demand, whether under a
10        contract or otherwise, for money or property and
11        whether or not the State has title to the money or
12        property, that
13                (i) is presented to an officer, employee, or
14            agent of the State; or
15                (ii) is made to a contractor, grantee, or other
16            recipient, if the money or property is to be spent
17            or used on the State's behalf or to advance a State
18            program or interest, and if the State:
19                    (I) provides or has provided any portion
20                of the money or property requested or demanded;
21                or
22                    (II) will reimburse such contractor,
23                grantee, or other recipient for any portion of
24                the money or property which is requested or
25                demanded; and
26            (B) does not include requests or demands for money

 

 

10000SB0009ham001- 42 -LRB100 06347 HLH 27036 a

1        or property that the State has paid to an individual as
2        compensation for State employment or as an income
3        subsidy with no restrictions on that individual's use
4        of the money or property.
5        (3) The term "obligation" means an established duty,
6    whether or not fixed, arising from an express or implied
7    contractual, grantor-grantee, or licensor-licensee
8    relationship, from a fee-based or similar relationship,
9    from statute or regulation, or from the retention of any
10    overpayment.
11        (4) The term "material" means having a natural tendency
12    to influence, or be capable of influencing, the payment or
13    receipt of money or property.
14    (c) Exclusion. This Section does not apply to any taxes
15imposed, collected, or administered by the State of Illinois
16claims, records, or statements made under the Illinois Income
17Tax Act.
18(Source: P.A. 95-128, eff. 1-1-08; 96-1304, eff. 7-27-10.)
 
19    Section 20. The Limited Liability Company Act is amended by
20changing Section 50-10 as follows:
 
21    (805 ILCS 180/50-10)
22    (Text of Section before amendment by P.A. 99-637)
23    Sec. 50-10. Fees.
24    (a) The Secretary of State shall charge and collect in

 

 

10000SB0009ham001- 43 -LRB100 06347 HLH 27036 a

1accordance with the provisions of this Act and rules
2promulgated under its authority all of the following:
3        (1) Fees for filing documents.
4        (2) Miscellaneous charges.
5        (3) Fees for the sale of lists of filings and for
6    copies of any documents.
7    (b) The Secretary of State shall charge and collect for all
8of the following:
9        (1) Filing articles of organization (domestic),
10    application for admission (foreign), and restated articles
11    of organization (domestic), $39 $500. Notwithstanding the
12    foregoing, the fee for filing articles of organization
13    (domestic), application for admission (foreign), and
14    restated articles of organization (domestic) in connection
15    with a limited liability company with ability to establish
16    series pursuant to Section 37-40 of this Act is $59 $750.
17        (2) Filing articles of amendment or an amended
18    application for admission, $150.
19        (3) Filing articles of dissolution or application for
20    withdrawal, $100.
21        (4) Filing an application to reserve a name, $300.
22        (5) Filing a notice of cancellation of a reserved name,
23    $100.
24        (6) Filing a notice of a transfer of a reserved name,
25    $100.
26        (7) Registration of a name, $300.

 

 

10000SB0009ham001- 44 -LRB100 06347 HLH 27036 a

1        (8) Renewal of registration of a name, $100.
2        (9) Filing an application for use of an assumed name
3    under Section 1-20 of this Act, $150 for each year or part
4    thereof ending in 0 or 5, $120 for each year or part
5    thereof ending in 1 or 6, $90 for each year or part thereof
6    ending in 2 or 7, $60 for each year or part thereof ending
7    in 3 or 8, $30 for each year or part thereof ending in 4 or
8    9, and a renewal for each assumed name, $150.
9        (10) Filing an application for change or cancellation
10    of an assumed name, $100.
11        (11) Filing an annual report of a limited liability
12    company or foreign limited liability company, $250, if
13    filed as required by this Act, plus a penalty if
14    delinquent. Notwithstanding the foregoing, the fee for
15    filing an annual report of a limited liability company or
16    foreign limited liability company with ability to
17    establish series is $250 plus $50 for each series for which
18    a certificate of designation has been filed pursuant to
19    Section 37-40 of this Act and active on the last day of the
20    third month preceding the company's anniversary month,
21    plus a penalty if delinquent.
22        (12) Filing an application for reinstatement of a
23    limited liability company or foreign limited liability
24    company $500.
25        (13) Filing Articles of Merger, $100 plus $50 for each
26    party to the merger in excess of the first 2 parties.

 

 

10000SB0009ham001- 45 -LRB100 06347 HLH 27036 a

1        (14) Filing an Agreement of Conversion or Statement of
2    Conversion, $100.
3        (15) Filing a statement of change of address of
4    registered office or change of registered agent, or both,
5    or filing a statement of correction, $25.
6        (16) Filing a petition for refund, $15.
7        (17) Filing any other document, $100.
8        (18) Filing a certificate of designation of a limited
9    liability company with the ability to establish series
10    pursuant to Section 37-40 of this Act, $50.
11    (c) The Secretary of State shall charge and collect all of
12the following:
13        (1) For furnishing a copy or certified copy of any
14    document, instrument, or paper relating to a limited
15    liability company or foreign limited liability company, or
16    for a certificate, $25.
17        (2) For the transfer of information by computer process
18    media to any purchaser, fees established by rule.
19(Source: P.A. 97-839, eff. 7-20-12.)
 
20    (Text of Section after amendment by P.A. 99-637)
21    Sec. 50-10. Fees.
22    (a) The Secretary of State shall charge and collect in
23accordance with the provisions of this Act and rules
24promulgated under its authority all of the following:
25        (1) Fees for filing documents.

 

 

10000SB0009ham001- 46 -LRB100 06347 HLH 27036 a

1        (2) Miscellaneous charges.
2        (3) Fees for the sale of lists of filings and for
3    copies of any documents.
4    (b) The Secretary of State shall charge and collect for all
5of the following:
6        (1) Filing articles of organization (domestic),
7    application for admission (foreign), and restated articles
8    of organization (domestic), $39 $500. Notwithstanding the
9    foregoing, the fee for filing articles of organization
10    (domestic), application for admission (foreign), and
11    restated articles of organization (domestic) in connection
12    with a limited liability company with a series or the
13    ability to establish a series pursuant to Section 37-40 of
14    this Act is $59 $750.
15        (2) Filing amendments (domestic or foreign), $150.
16        (3) Filing a statement of termination or application
17    for withdrawal, $25.
18        (4) Filing an application to reserve a name, $300.
19        (5) Filing a notice of cancellation of a reserved name,
20    $100.
21        (6) Filing a notice of a transfer of a reserved name,
22    $100.
23        (7) Registration of a name, $300.
24        (8) Renewal of registration of a name, $100.
25        (9) Filing an application for use of an assumed name
26    under Section 1-20 of this Act, $150 for each year or part

 

 

10000SB0009ham001- 47 -LRB100 06347 HLH 27036 a

1    thereof ending in 0 or 5, $120 for each year or part
2    thereof ending in 1 or 6, $90 for each year or part thereof
3    ending in 2 or 7, $60 for each year or part thereof ending
4    in 3 or 8, $30 for each year or part thereof ending in 4 or
5    9, and a renewal for each assumed name, $150.
6        (10) Filing an application for change or cancellation
7    of an assumed name, $100.
8        (11) Filing an annual report of a limited liability
9    company or foreign limited liability company, $250, if
10    filed as required by this Act, plus a penalty if
11    delinquent. Notwithstanding the foregoing, the fee for
12    filing an annual report of a limited liability company or
13    foreign limited liability company is $250 plus $50 for each
14    series for which a certificate of designation has been
15    filed pursuant to Section 37-40 of this Act and is in
16    effect on the last day of the third month preceding the
17    company's anniversary month, plus a penalty if delinquent.
18        (12) Filing an application for reinstatement of a
19    limited liability company or foreign limited liability
20    company $500.
21        (13) Filing articles of merger, $100 plus $50 for each
22    party to the merger in excess of the first 2 parties.
23        (14) Filing articles of conversion, $100.
24        (15) Filing a statement of change of address of
25    registered office or change of registered agent, or both,
26    or filing a statement of correction, $25.

 

 

10000SB0009ham001- 48 -LRB100 06347 HLH 27036 a

1        (16) Filing a petition for refund, $15.
2        (17) Filing a certificate of designation of a limited
3    liability company with a series pursuant to Section 37-40
4    of this Act, $50.
5        (18) Filing articles of domestication, $100.
6        (19) Filing, amending, or cancelling a statement of
7    authority, $50.
8        (20) Filing, amending, or cancelling a statement of
9    denial, $10.
10        (21) Filing any other document, $100.
11    (c) The Secretary of State shall charge and collect all of
12the following:
13        (1) For furnishing a copy or certified copy of any
14    document, instrument, or paper relating to a limited
15    liability company or foreign limited liability company, or
16    for a certificate, $25.
17        (2) For the transfer of information by computer process
18    media to any purchaser, fees established by rule.
19(Source: P.A. 99-637, eff. 7-1-17.)
 
20    Section 95. No acceleration or delay. Where this Act makes
21changes in a statute that is represented in this Act by text
22that is not yet or no longer in effect (for example, a Section
23represented by multiple versions), the use of that text does
24not accelerate or delay the taking effect of (i) the changes
25made by this Act or (ii) provisions derived from any other

 

 

10000SB0009ham001- 49 -LRB100 06347 HLH 27036 a

1Public Act.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".