Full Text of SB0687 101st General Assembly
SB0687sam001 101ST GENERAL ASSEMBLY | Sen. Toi W. Hutchinson Filed: 4/30/2019
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| 1 | | AMENDMENT TO SENATE BILL 687
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 687 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Sections 201, 208, 502, and 901 and by adding Sections | 6 | | 201.1 and 229 as follows: | 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 | 10 | | imposed on every
individual, corporation, trust and estate for | 11 | | each taxable year ending
after July 31, 1969 on the privilege | 12 | | of earning or receiving income in or
as a resident of this | 13 | | State. Such tax shall be in addition to all other
occupation or | 14 | | privilege taxes imposed by this State or by any municipal
| 15 | | corporation or political subdivision thereof. | 16 | | (b) Rates. The tax imposed by subsection (a) of this |
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| 1 | | Section shall be
determined as follows, except as adjusted by | 2 | | subsection (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 July 1, 2017, an amount equal to 3.75% | 13 | | 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 July 1, 2017, and | 16 | | ending after June 30, 2017, an amount equal to the sum of | 17 | | (i) 3.75% of the taxpayer's net income for the period prior | 18 | | to July 1, 2017, as calculated under Section 202.5, and | 19 | | (ii) 4.95% of the taxpayer's net income for the period | 20 | | after June 30, 2017, as calculated under Section 202.5. | 21 | | (5.4) In the case of an individual, trust, or estate, | 22 | | for taxable years beginning on or after July 1, 2017 and | 23 | | beginning prior to January 1, 2021 , an amount equal to | 24 | | 4.95% of the taxpayer's net income for the taxable year. | 25 | | (5.5) In the case of an individual, trust, or estate, | 26 | | for taxable years beginning on or after January 1, 2021, an |
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| 1 | | amount calculated under the rate structure set forth in | 2 | | Section 201.1. | 3 | | (6) In the case of a corporation, for taxable years
| 4 | | ending prior to July 1, 1989, an amount equal to 4% of the
| 5 | | taxpayer's net income for the taxable year. | 6 | | (7) In the case of a corporation, for taxable years | 7 | | beginning prior to
July 1, 1989 and ending after June 30, | 8 | | 1989, an amount equal to the sum of
(i) 4% of the | 9 | | taxpayer's net income for the period prior to July 1, 1989,
| 10 | | as calculated under Section 202.3, and (ii) 4.8% of the | 11 | | taxpayer's net
income for the period after June 30, 1989, | 12 | | as calculated under Section
202.3. | 13 | | (8) In the case of a corporation, for taxable years | 14 | | beginning after
June 30, 1989, and ending prior to January | 15 | | 1, 2011, an amount equal to 4.8% of the taxpayer's net | 16 | | income for the
taxable year. | 17 | | (9) In the case of a corporation, for taxable years | 18 | | beginning prior to January 1, 2011, and ending after | 19 | | December 31, 2010, an amount equal to the sum of (i) 4.8% | 20 | | of the taxpayer's net income for the period prior to | 21 | | January 1, 2011, as calculated under Section 202.5, and | 22 | | (ii) 7% of the taxpayer's net income for the period after | 23 | | December 31, 2010, as calculated under Section 202.5. | 24 | | (10) In the case of a corporation, for taxable years | 25 | | beginning on or after January 1, 2011, and ending prior to | 26 | | January 1, 2015, an amount equal to 7% of the taxpayer's |
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| 1 | | net income for the taxable year. | 2 | | (11) In the case of a corporation, for taxable years | 3 | | beginning prior to January 1, 2015, and ending after | 4 | | December 31, 2014, an amount equal to the sum of (i) 7% of | 5 | | the taxpayer's net income for the period prior to January | 6 | | 1, 2015, as calculated under Section 202.5, and (ii) 5.25% | 7 | | of the taxpayer's net income for the period after December | 8 | | 31, 2014, as calculated under Section 202.5. | 9 | | (12) In the case of a corporation, for taxable years | 10 | | beginning on or after January 1, 2015, and ending prior to | 11 | | July 1, 2017, an amount equal to 5.25% of the taxpayer's | 12 | | net income for the taxable year. | 13 | | (13) In the case of a corporation, for taxable years | 14 | | beginning prior to July 1, 2017, and ending after June 30, | 15 | | 2017, an amount equal to the sum of (i) 5.25% of the | 16 | | taxpayer's net income for the period prior to July 1, 2017, | 17 | | as calculated under Section 202.5, and (ii) 7% of the | 18 | | taxpayer's net income for the period after June 30, 2017, | 19 | | as calculated under Section 202.5. | 20 | | (14) In the case of a corporation, for taxable years | 21 | | beginning on or after July 1, 2017 and beginning prior to | 22 | | January 1, 2021 , an amount equal to 7% of the taxpayer's | 23 | | net income for the taxable year. | 24 | | (15) In the case of a corporation, for taxable years | 25 | | beginning on or after January 1, 2021, an amount equal to | 26 | | 7.99% of the taxpayer's net income for the taxable year. |
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| 1 | | The rates under this subsection (b) are subject to the | 2 | | provisions of Section 201.5. | 3 | | (c) Personal Property Tax Replacement Income Tax.
| 4 | | Beginning on July 1, 1979 and thereafter, in addition to such | 5 | | income
tax, there is also hereby imposed the Personal Property | 6 | | Tax Replacement
Income Tax measured by net income on every | 7 | | corporation (including Subchapter
S corporations), partnership | 8 | | and trust, for each taxable year ending after
June 30, 1979. | 9 | | Such taxes are imposed on the privilege of earning or
receiving | 10 | | income in or as a resident of this State. The Personal Property
| 11 | | Tax Replacement Income Tax shall be in addition to the income | 12 | | tax imposed
by subsections (a) and (b) of this Section and in | 13 | | addition to all other
occupation or privilege taxes imposed by | 14 | | this State or by any municipal
corporation or political | 15 | | subdivision thereof. | 16 | | (d) Additional Personal Property Tax Replacement Income | 17 | | Tax Rates.
The personal property tax replacement income tax | 18 | | imposed by this subsection
and subsection (c) of this Section | 19 | | in the case of a corporation, other
than a Subchapter S | 20 | | corporation and except as adjusted by subsection (d-1),
shall | 21 | | be an additional amount equal to
2.85% of such taxpayer's net | 22 | | income for the taxable year, except that
beginning on January | 23 | | 1, 1981, and thereafter, the rate of 2.85% specified
in this | 24 | | subsection shall be reduced to 2.5%, and in the case of a
| 25 | | partnership, trust or a Subchapter S corporation shall be an | 26 | | additional
amount equal to 1.5% of such taxpayer's net income |
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| 1 | | for the taxable year. | 2 | | (d-1) Rate reduction for certain foreign insurers. In the | 3 | | case of a
foreign insurer, as defined by Section 35A-5 of the | 4 | | Illinois Insurance Code,
whose state or country of domicile | 5 | | imposes on insurers domiciled in Illinois
a retaliatory tax | 6 | | (excluding any insurer
whose premiums from reinsurance assumed | 7 | | are 50% or more of its total insurance
premiums as determined | 8 | | under paragraph (2) of subsection (b) of Section 304,
except | 9 | | that for purposes of this determination premiums from | 10 | | reinsurance do
not include premiums from inter-affiliate | 11 | | reinsurance arrangements),
beginning with taxable years ending | 12 | | on or after December 31, 1999,
the sum of
the rates of tax | 13 | | imposed by subsections (b) and (d) shall be reduced (but not
| 14 | | increased) to the rate at which the total amount of tax imposed | 15 | | under this Act,
net of all credits allowed under this Act, | 16 | | shall equal (i) the total amount of
tax that would be imposed | 17 | | on the foreign insurer's net income allocable to
Illinois for | 18 | | the taxable year by such foreign insurer's state or country of
| 19 | | domicile if that net income were subject to all income taxes | 20 | | and taxes
measured by net income imposed by such foreign | 21 | | insurer's state or country of
domicile, net of all credits | 22 | | allowed or (ii) a rate of zero if no such tax is
imposed on such | 23 | | income by the foreign insurer's state of domicile.
For the | 24 | | purposes of this subsection (d-1), an inter-affiliate includes | 25 | | a
mutual insurer under common management. | 26 | | (1) For the purposes of subsection (d-1), in no event |
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| 1 | | shall the sum of the
rates of tax imposed by subsections | 2 | | (b) and (d) be reduced below the rate at
which the sum of: | 3 | | (A) the total amount of tax imposed on such foreign | 4 | | insurer under
this Act for a taxable year, net of all | 5 | | credits allowed under this Act, plus | 6 | | (B) the privilege tax imposed by Section 409 of the | 7 | | Illinois Insurance
Code, the fire insurance company | 8 | | tax imposed by Section 12 of the Fire
Investigation | 9 | | Act, and the fire department taxes imposed under | 10 | | Section 11-10-1
of the Illinois Municipal Code, | 11 | | equals 1.25% for taxable years ending prior to December 31, | 12 | | 2003, or
1.75% for taxable years ending on or after | 13 | | December 31, 2003, of the net
taxable premiums written for | 14 | | the taxable year,
as described by subsection (1) of Section | 15 | | 409 of the Illinois Insurance Code.
This paragraph will in | 16 | | no event increase the rates imposed under subsections
(b) | 17 | | and (d). | 18 | | (2) Any reduction in the rates of tax imposed by this | 19 | | subsection shall be
applied first against the rates imposed | 20 | | by subsection (b) and only after the
tax imposed by | 21 | | subsection (a) net of all credits allowed under this | 22 | | Section
other than the credit allowed under subsection (i) | 23 | | has been reduced to zero,
against the rates imposed by | 24 | | subsection (d). | 25 | | This subsection (d-1) is exempt from the provisions of | 26 | | Section 250. |
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| 1 | | (e) Investment credit. A taxpayer shall be allowed a credit
| 2 | | against the Personal Property Tax Replacement Income Tax for
| 3 | | investment in qualified property. | 4 | | (1) A taxpayer shall be allowed a credit equal to .5% | 5 | | of
the basis of qualified property placed in service during | 6 | | the taxable year,
provided such property is placed in | 7 | | service on or after
July 1, 1984. There shall be allowed an | 8 | | additional credit equal
to .5% of the basis of qualified | 9 | | property placed in service during the
taxable year, | 10 | | provided such property is placed in service on or
after | 11 | | July 1, 1986, and the taxpayer's base employment
within | 12 | | Illinois has increased by 1% or more over the preceding | 13 | | year as
determined by the taxpayer's employment records | 14 | | filed with the
Illinois Department of Employment Security. | 15 | | Taxpayers who are new to
Illinois shall be deemed to have | 16 | | met the 1% growth in base employment for
the first year in | 17 | | which they file employment records with the Illinois
| 18 | | Department of Employment Security. The provisions added to | 19 | | this Section by
Public Act 85-1200 (and restored by Public | 20 | | Act 87-895) shall be
construed as declaratory of existing | 21 | | law and not as a new enactment. If,
in any year, the | 22 | | increase in base employment within Illinois over the
| 23 | | preceding year is less than 1%, the additional credit shall | 24 | | be limited to that
percentage times a fraction, the | 25 | | numerator of which is .5% and the denominator
of which is | 26 | | 1%, but shall not exceed .5%. The investment credit shall |
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| 1 | | not be
allowed to the extent that it would reduce a | 2 | | taxpayer's liability in any tax
year below zero, nor may | 3 | | any credit for qualified property be allowed for any
year | 4 | | other than the year in which the property was placed in | 5 | | service in
Illinois. For tax years ending on or after | 6 | | December 31, 1987, and on or
before December 31, 1988, the | 7 | | credit shall be allowed for the tax year in
which the | 8 | | property is placed in service, or, if the amount of the | 9 | | credit
exceeds the tax liability for that year, whether it | 10 | | exceeds the original
liability or the liability as later | 11 | | amended, such excess may be carried
forward and applied to | 12 | | the tax liability of the 5 taxable years following
the | 13 | | excess credit years if the taxpayer (i) makes investments | 14 | | which cause
the creation of a minimum of 2,000 full-time | 15 | | equivalent jobs in Illinois,
(ii) is located in an | 16 | | enterprise zone established pursuant to the Illinois
| 17 | | Enterprise Zone Act and (iii) is certified by the | 18 | | Department of Commerce
and Community Affairs (now | 19 | | Department of Commerce and Economic Opportunity) as | 20 | | complying with the requirements specified in
clause (i) and | 21 | | (ii) by July 1, 1986. The Department of Commerce and
| 22 | | Community Affairs (now Department of Commerce and Economic | 23 | | Opportunity) shall notify the Department of Revenue of all | 24 | | such
certifications immediately. For tax years ending | 25 | | after December 31, 1988,
the credit shall be allowed for | 26 | | the tax year in which the property is
placed in service, |
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| 1 | | or, if the amount of the credit exceeds the tax
liability | 2 | | for that year, whether it exceeds the original liability or | 3 | | the
liability as later amended, such excess may be carried | 4 | | forward and applied
to the tax liability of the 5 taxable | 5 | | years following the excess credit
years. The credit shall | 6 | | be applied to the earliest year for which there is
a | 7 | | liability. If there is credit from more than one tax year | 8 | | that is
available to offset a liability, earlier credit | 9 | | shall be applied first. | 10 | | (2) The term "qualified property" means property | 11 | | which: | 12 | | (A) is tangible, whether new or used, including | 13 | | buildings and structural
components of buildings and | 14 | | signs that are real property, but not including
land or | 15 | | improvements to real property that are not a structural | 16 | | component of a
building such as landscaping, sewer | 17 | | lines, local access roads, fencing, parking
lots, and | 18 | | other appurtenances; | 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 | | (e); | 24 | | (C) is acquired by purchase as defined in Section | 25 | | 179(d) of
the Internal Revenue Code; | 26 | | (D) is used in Illinois by a taxpayer who is |
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| 1 | | primarily engaged in
manufacturing, or in mining coal | 2 | | or fluorite, or in retailing, or was placed in service | 3 | | on or after July 1, 2006 in a River Edge Redevelopment | 4 | | Zone established pursuant to the River Edge | 5 | | Redevelopment Zone Act; and | 6 | | (E) has not previously been used in Illinois in | 7 | | such a manner and by
such a person as would qualify for | 8 | | the credit provided by this subsection
(e) or | 9 | | subsection (f). | 10 | | (3) For purposes of this subsection (e), | 11 | | "manufacturing" means
the material staging and production | 12 | | of tangible personal property by
procedures commonly | 13 | | regarded as manufacturing, processing, fabrication, or
| 14 | | assembling which changes some existing material into new | 15 | | shapes, new
qualities, or new combinations. For purposes of | 16 | | this subsection
(e) the term "mining" shall have the same | 17 | | meaning as the term "mining" in
Section 613(c) of the | 18 | | Internal Revenue Code. For purposes of this subsection
(e), | 19 | | the term "retailing" means the sale of tangible personal | 20 | | property for use or consumption and not for resale, or
| 21 | | services rendered in conjunction with the sale of tangible | 22 | | personal property for use or consumption and not for | 23 | | resale. For purposes of this subsection (e), "tangible | 24 | | personal property" has the same meaning as when that term | 25 | | is used in the Retailers' Occupation Tax Act, and, for | 26 | | taxable years ending after December 31, 2008, does not |
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| 1 | | include the generation, transmission, or distribution of | 2 | | electricity. | 3 | | (4) The basis of qualified property shall be the basis
| 4 | | used to compute the depreciation deduction for federal | 5 | | income tax purposes. | 6 | | (5) If the basis of the property for federal income tax | 7 | | depreciation
purposes is increased after it has been placed | 8 | | in service in Illinois by
the taxpayer, the amount of such | 9 | | increase shall be deemed property placed
in service on the | 10 | | date of such increase in basis. | 11 | | (6) The term "placed in service" shall have the same
| 12 | | meaning as under Section 46 of the Internal Revenue Code. | 13 | | (7) If during any taxable year, any property ceases to
| 14 | | be qualified property in the hands of the taxpayer within | 15 | | 48 months after
being placed in service, or the situs of | 16 | | any qualified property is
moved outside Illinois within 48 | 17 | | months after being placed in service, the
Personal Property | 18 | | Tax Replacement Income Tax for such taxable year shall be
| 19 | | increased. Such increase shall be determined by (i) | 20 | | recomputing the
investment credit which would have been | 21 | | allowed for the year in which
credit for such property was | 22 | | originally allowed by eliminating such
property from such | 23 | | computation and, (ii) subtracting such recomputed credit
| 24 | | from the amount of credit previously allowed. For the | 25 | | purposes of this
paragraph (7), a reduction of the basis of | 26 | | qualified property resulting
from a redetermination of the |
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| 1 | | purchase price shall be deemed a disposition
of qualified | 2 | | property to the extent of such reduction. | 3 | | (8) Unless the investment credit is extended by law, | 4 | | the
basis of qualified property shall not include costs | 5 | | incurred after
December 31, 2018, except for costs incurred | 6 | | pursuant to a binding
contract entered into on or before | 7 | | December 31, 2018. | 8 | | (9) Each taxable year ending before December 31, 2000, | 9 | | a partnership may
elect to pass through to its
partners the | 10 | | credits to which the partnership is entitled under this | 11 | | subsection
(e) for the taxable year. A partner may use the | 12 | | credit allocated to him or her
under this paragraph only | 13 | | against the tax imposed in subsections (c) and (d) of
this | 14 | | Section. If the partnership makes that election, those | 15 | | credits shall be
allocated among the partners in the | 16 | | partnership in accordance with the rules
set forth in | 17 | | Section 704(b) of the Internal Revenue Code, and the rules
| 18 | | promulgated under that Section, and the allocated amount of | 19 | | the credits shall
be allowed to the partners for that | 20 | | taxable year. The partnership shall make
this election on | 21 | | its Personal Property Tax Replacement Income Tax return for
| 22 | | that taxable year. The election to pass through the credits | 23 | | shall be
irrevocable. | 24 | | For taxable years ending on or after December 31, 2000, | 25 | | a
partner that qualifies its
partnership for a subtraction | 26 | | under subparagraph (I) of paragraph (2) of
subsection (d) |
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| 1 | | of Section 203 or a shareholder that qualifies a Subchapter | 2 | | S
corporation for a subtraction under subparagraph (S) of | 3 | | paragraph (2) of
subsection (b) of Section 203 shall be | 4 | | allowed a credit under this subsection
(e) equal to its | 5 | | share of the credit earned under this subsection (e) during
| 6 | | the taxable year by the partnership or Subchapter S | 7 | | corporation, determined in
accordance with the | 8 | | determination of income and distributive share of
income | 9 | | under Sections 702 and 704 and Subchapter S of the Internal | 10 | | Revenue
Code. This paragraph is exempt from the provisions | 11 | | of Section 250. | 12 | | (f) Investment credit; Enterprise Zone; River Edge | 13 | | Redevelopment Zone. | 14 | | (1) A taxpayer shall be allowed a credit against the | 15 | | tax imposed
by subsections (a) and (b) of this Section for | 16 | | investment in qualified
property which is placed in service | 17 | | in an Enterprise Zone created
pursuant to the Illinois | 18 | | Enterprise Zone Act or, for property placed in service on | 19 | | or after July 1, 2006, a River Edge Redevelopment Zone | 20 | | established pursuant to the River Edge Redevelopment Zone | 21 | | Act. For partners, shareholders
of Subchapter S | 22 | | corporations, and owners of limited liability companies,
| 23 | | if the liability company is treated as a partnership for | 24 | | purposes of
federal and State income taxation, there shall | 25 | | be allowed a credit under
this subsection (f) to be | 26 | | determined in accordance with the determination
of income |
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| 1 | | and distributive share of income under Sections 702 and 704 | 2 | | and
Subchapter S of the Internal Revenue Code. The credit | 3 | | shall be .5% of the
basis for such property. The credit | 4 | | shall be available only in the taxable
year in which the | 5 | | property is placed in service in the Enterprise Zone or | 6 | | River Edge Redevelopment Zone and
shall not be allowed to | 7 | | the extent that it would reduce a taxpayer's
liability for | 8 | | the tax imposed by subsections (a) and (b) of this Section | 9 | | to
below zero. For tax years ending on or after December | 10 | | 31, 1985, the credit
shall be allowed for the tax year in | 11 | | which the property is placed in
service, or, if the amount | 12 | | of the credit exceeds the tax liability for that
year, | 13 | | whether it exceeds the original liability or the liability | 14 | | as later
amended, such excess may be carried forward and | 15 | | applied to the tax
liability of the 5 taxable years | 16 | | following the excess credit year.
The credit shall be | 17 | | applied to the earliest year for which there is a
| 18 | | liability. If there is credit from more than one tax year | 19 | | that is available
to offset a liability, the credit | 20 | | accruing first in time shall be applied
first. | 21 | | (2) The term qualified property means property which: | 22 | | (A) is tangible, whether new or used, including | 23 | | buildings and
structural components of buildings; | 24 | | (B) is depreciable pursuant to Section 167 of the | 25 | | Internal Revenue
Code, except that "3-year property" | 26 | | as defined in Section 168(c)(2)(A) of
that Code is not |
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| 1 | | eligible for the credit provided by this subsection | 2 | | (f); | 3 | | (C) is acquired by purchase as defined in Section | 4 | | 179(d) of
the Internal Revenue Code; | 5 | | (D) is used in the Enterprise Zone or River Edge | 6 | | Redevelopment Zone by the taxpayer; and | 7 | | (E) has not been previously used in Illinois in | 8 | | such a manner and by
such a person as would qualify for | 9 | | the credit provided by this subsection
(f) or | 10 | | subsection (e). | 11 | | (3) The basis of qualified property shall be the basis | 12 | | used to compute
the depreciation deduction for federal | 13 | | income tax purposes. | 14 | | (4) If the basis of the property for federal income tax | 15 | | depreciation
purposes is increased after it has been placed | 16 | | in service in the Enterprise
Zone or River Edge | 17 | | Redevelopment Zone by the taxpayer, the amount of such | 18 | | increase shall be deemed property
placed in service on the | 19 | | date of such increase in basis. | 20 | | (5) The term "placed in service" shall have the same | 21 | | meaning as under
Section 46 of the Internal Revenue Code. | 22 | | (6) If during any taxable year, any property ceases to | 23 | | be qualified
property in the hands of the taxpayer within | 24 | | 48 months after being placed
in service, or the situs of | 25 | | any qualified property is moved outside the
Enterprise Zone | 26 | | or River Edge Redevelopment Zone within 48 months after |
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| 1 | | being placed in service, the tax
imposed under subsections | 2 | | (a) and (b) of this Section for such taxable year
shall be | 3 | | increased. Such increase shall be determined by (i) | 4 | | recomputing
the investment credit which would have been | 5 | | allowed for the year in which
credit for such property was | 6 | | originally allowed by eliminating such
property from such | 7 | | computation, and (ii) subtracting such recomputed credit
| 8 | | from the amount of credit previously allowed. For the | 9 | | purposes of this
paragraph (6), a reduction of the basis of | 10 | | qualified property resulting
from a redetermination of the | 11 | | purchase price shall be deemed a disposition
of qualified | 12 | | property to the extent of such reduction. | 13 | | (7) There shall be allowed an additional credit equal | 14 | | to 0.5% of the basis of qualified property placed in | 15 | | service during the taxable year in a River Edge | 16 | | Redevelopment Zone, provided such property is placed in | 17 | | service on or after July 1, 2006, and the taxpayer's base | 18 | | employment within Illinois has increased by 1% or more over | 19 | | the preceding year as determined by the taxpayer's | 20 | | employment records filed with the Illinois Department of | 21 | | Employment Security. Taxpayers who are new to Illinois | 22 | | shall be deemed to have met the 1% growth in base | 23 | | employment for the first year in which they file employment | 24 | | records with the Illinois Department of Employment | 25 | | Security. If, in any year, the increase in base employment | 26 | | within Illinois over the preceding year is less than 1%, |
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| 1 | | the additional credit shall be limited to that percentage | 2 | | times a fraction, the numerator of which is 0.5% and the | 3 | | denominator of which is 1%, but shall not exceed 0.5%.
| 4 | | (g) (Blank). | 5 | | (h) Investment credit; High Impact Business. | 6 | | (1) Subject to subsections (b) and (b-5) of Section
5.5 | 7 | | of the Illinois Enterprise Zone Act, a taxpayer shall be | 8 | | allowed a credit
against the tax imposed by subsections (a) | 9 | | and (b) of this Section for
investment in qualified
| 10 | | property which is placed in service by a Department of | 11 | | Commerce and Economic Opportunity
designated High Impact | 12 | | Business. The credit shall be .5% of the basis
for such | 13 | | property. The credit shall not be available (i) until the | 14 | | minimum
investments in qualified property set forth in | 15 | | subdivision (a)(3)(A) of
Section 5.5 of the Illinois
| 16 | | Enterprise Zone Act have been satisfied
or (ii) until the | 17 | | time authorized in subsection (b-5) of the Illinois
| 18 | | Enterprise Zone Act for entities designated as High Impact | 19 | | Businesses under
subdivisions (a)(3)(B), (a)(3)(C), and | 20 | | (a)(3)(D) of Section 5.5 of the Illinois
Enterprise Zone | 21 | | Act, and shall not be allowed to the extent that it would
| 22 | | reduce a taxpayer's liability for the tax imposed by | 23 | | subsections (a) and (b) of
this Section to below zero. The | 24 | | credit applicable to such investments shall be
taken in the | 25 | | taxable year in which such investments have been completed. | 26 | | The
credit for additional investments beyond the minimum |
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| 1 | | investment by a designated
high impact business authorized | 2 | | under subdivision (a)(3)(A) of Section 5.5 of
the Illinois | 3 | | Enterprise Zone Act shall be available only in the taxable | 4 | | year in
which the property is placed in service and shall | 5 | | not be allowed to the extent
that it would reduce a | 6 | | taxpayer's liability for the tax imposed by subsections
(a) | 7 | | and (b) of this Section to below zero.
For tax years ending | 8 | | on or after December 31, 1987, the credit shall be
allowed | 9 | | for the tax year in which the property is placed in | 10 | | service, or, if
the amount of the credit exceeds the tax | 11 | | liability for that year, whether
it exceeds the original | 12 | | liability or the liability as later amended, such
excess | 13 | | may be carried forward and applied to the tax liability of | 14 | | the 5
taxable years following the excess credit year. The | 15 | | credit shall be
applied to the earliest year for which | 16 | | there is a liability. If there is
credit from more than one | 17 | | tax year that is available to offset a liability,
the | 18 | | credit accruing first in time shall be applied first. | 19 | | Changes made in this subdivision (h)(1) by Public Act | 20 | | 88-670
restore changes made by Public Act 85-1182 and | 21 | | reflect existing law. | 22 | | (2) The term qualified property means property which: | 23 | | (A) is tangible, whether new or used, including | 24 | | buildings and
structural components of buildings; | 25 | | (B) is depreciable pursuant to Section 167 of the | 26 | | Internal Revenue
Code, except that "3-year property" |
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| 1 | | as defined in Section 168(c)(2)(A) of
that Code is not | 2 | | eligible for the credit provided by this subsection | 3 | | (h); | 4 | | (C) is acquired by purchase as defined in Section | 5 | | 179(d) of the
Internal Revenue Code; and | 6 | | (D) is not eligible for the Enterprise Zone | 7 | | Investment Credit provided
by subsection (f) of this | 8 | | Section. | 9 | | (3) The basis of qualified property shall be the basis | 10 | | used to compute
the depreciation deduction for federal | 11 | | income tax purposes. | 12 | | (4) If the basis of the property for federal income tax | 13 | | depreciation
purposes is increased after it has been placed | 14 | | in service in a federally
designated Foreign Trade Zone or | 15 | | Sub-Zone located in Illinois by the taxpayer,
the amount of | 16 | | such increase shall be deemed property placed in service on
| 17 | | the date of such increase in basis. | 18 | | (5) The term "placed in service" shall have the same | 19 | | meaning as under
Section 46 of the Internal Revenue Code. | 20 | | (6) If during any taxable year ending on or before | 21 | | December 31, 1996,
any property ceases to be qualified
| 22 | | property in the hands of the taxpayer within 48 months | 23 | | after being placed
in service, or the situs of any | 24 | | qualified property is moved outside
Illinois within 48 | 25 | | months after being placed in service, the tax imposed
under | 26 | | subsections (a) and (b) of this Section for such taxable |
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| 1 | | year shall
be increased. Such increase shall be determined | 2 | | by (i) recomputing the
investment credit which would have | 3 | | been allowed for the year in which
credit for such property | 4 | | was originally allowed by eliminating such
property from | 5 | | such computation, and (ii) subtracting such recomputed | 6 | | credit
from the amount of credit previously allowed. For | 7 | | the purposes of this
paragraph (6), a reduction of the | 8 | | basis of qualified property resulting
from a | 9 | | redetermination of the purchase price shall be deemed a | 10 | | disposition
of qualified property to the extent of such | 11 | | reduction. | 12 | | (7) Beginning with tax years ending after December 31, | 13 | | 1996, if a
taxpayer qualifies for the credit under this | 14 | | subsection (h) and thereby is
granted a tax abatement and | 15 | | the taxpayer relocates its entire facility in
violation of | 16 | | the explicit terms and length of the contract under Section
| 17 | | 18-183 of the Property Tax Code, the tax imposed under | 18 | | subsections
(a) and (b) of this Section shall be increased | 19 | | for the taxable year
in which the taxpayer relocated its | 20 | | facility by an amount equal to the
amount of credit | 21 | | received by the taxpayer under this subsection (h). | 22 | | (i) Credit for Personal Property Tax Replacement Income | 23 | | Tax.
For tax years ending prior to December 31, 2003, a credit | 24 | | shall be allowed
against the tax imposed by
subsections (a) and | 25 | | (b) of this Section for the tax imposed by subsections (c)
and | 26 | | (d) of this Section. This credit shall be computed by |
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| 1 | | multiplying the tax
imposed by subsections (c) and (d) of this | 2 | | Section by a fraction, the numerator
of which is base income | 3 | | allocable to Illinois and the denominator of which is
Illinois | 4 | | base income, and further multiplying the product by the tax | 5 | | rate
imposed by subsections (a) and (b) of this Section. | 6 | | Any credit earned on or after December 31, 1986 under
this | 7 | | subsection which is unused in the year
the credit is computed | 8 | | because it exceeds the tax liability imposed by
subsections (a) | 9 | | and (b) for that year (whether it exceeds the original
| 10 | | liability or the liability as later amended) may be carried | 11 | | forward and
applied to the tax liability imposed by subsections | 12 | | (a) and (b) of the 5
taxable years following the excess credit | 13 | | year, provided that no credit may
be carried forward to any | 14 | | year ending on or
after December 31, 2003. This credit shall be
| 15 | | applied first to the earliest year for which there is a | 16 | | liability. If
there is a credit under this subsection from more | 17 | | than one tax year that is
available to offset a liability the | 18 | | earliest credit arising under this
subsection shall be applied | 19 | | first. | 20 | | If, during any taxable year ending on or after December 31, | 21 | | 1986, the
tax imposed by subsections (c) and (d) of this | 22 | | Section for which a taxpayer
has claimed a credit under this | 23 | | subsection (i) is reduced, the amount of
credit for such tax | 24 | | shall also be reduced. Such reduction shall be
determined by | 25 | | recomputing the credit to take into account the reduced tax
| 26 | | imposed by subsections (c) and (d). If any portion of the
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| 1 | | reduced amount of credit has been carried to a different | 2 | | taxable year, an
amended return shall be filed for such taxable | 3 | | year to reduce the amount of
credit claimed. | 4 | | (j) Training expense credit. Beginning with tax years | 5 | | ending on or
after December 31, 1986 and prior to December 31, | 6 | | 2003, a taxpayer shall be
allowed a credit against the
tax | 7 | | imposed by subsections (a) and (b) under this Section
for all | 8 | | amounts paid or accrued, on behalf of all persons
employed by | 9 | | the taxpayer in Illinois or Illinois residents employed
outside | 10 | | of Illinois by a taxpayer, for educational or vocational | 11 | | training in
semi-technical or technical fields or semi-skilled | 12 | | or skilled fields, which
were deducted from gross income in the | 13 | | computation of taxable income. The
credit against the tax | 14 | | imposed by subsections (a) and (b) shall be 1.6% of
such | 15 | | training expenses. For partners, shareholders of subchapter S
| 16 | | corporations, and owners of limited liability companies, if the | 17 | | liability
company is treated as a partnership for purposes of | 18 | | federal and State income
taxation, there shall be allowed a | 19 | | credit under this subsection (j) to be
determined in accordance | 20 | | with the determination of income and distributive
share of | 21 | | income under Sections 702 and 704 and subchapter S of the | 22 | | Internal
Revenue Code. | 23 | | Any credit allowed under this subsection which is unused in | 24 | | the year
the credit is earned may be carried forward to each of | 25 | | the 5 taxable
years following the year for which the credit is | 26 | | first computed until it is
used. This credit shall be applied |
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| 1 | | first to the earliest year for which
there is a liability. If | 2 | | there is a credit under this subsection from more
than one tax | 3 | | year that is available to offset a liability the earliest
| 4 | | credit arising under this subsection shall be applied first. No | 5 | | carryforward
credit may be claimed in any tax year ending on or | 6 | | after
December 31, 2003. | 7 | | (k) Research and development credit. For tax years ending | 8 | | after July 1, 1990 and prior to
December 31, 2003, and | 9 | | beginning again for tax years ending on or after December 31, | 10 | | 2004, and ending prior to January 1, 2022, a taxpayer shall be
| 11 | | allowed a credit against the tax imposed by subsections (a) and | 12 | | (b) of this
Section for increasing research activities in this | 13 | | State. The credit
allowed against the tax imposed by | 14 | | subsections (a) and (b) shall be equal
to 6 1/2% of the | 15 | | qualifying expenditures for increasing research activities
in | 16 | | this State. For partners, shareholders of subchapter S | 17 | | corporations, and
owners of limited liability companies, if the | 18 | | liability company is treated as a
partnership for purposes of | 19 | | federal and State income taxation, there shall be
allowed a | 20 | | credit under this subsection to be determined in accordance | 21 | | with the
determination of income and distributive share of | 22 | | income under Sections 702 and
704 and subchapter S of the | 23 | | Internal Revenue Code. | 24 | | For purposes of this subsection, "qualifying expenditures" | 25 | | means the
qualifying expenditures as defined for the federal | 26 | | credit for increasing
research activities which would be |
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| 1 | | allowable under Section 41 of the
Internal Revenue Code and | 2 | | which are conducted in this State, "qualifying
expenditures for | 3 | | increasing research activities in this State" means the
excess | 4 | | of qualifying expenditures for the taxable year in which | 5 | | incurred
over qualifying expenditures for the base period, | 6 | | "qualifying expenditures
for the base period" means the average | 7 | | of the qualifying expenditures for
each year in the base | 8 | | period, and "base period" means the 3 taxable years
immediately | 9 | | preceding the taxable year for which the determination is
being | 10 | | made. | 11 | | Any credit in excess of the tax liability for the taxable | 12 | | year
may be carried forward. A taxpayer may elect to have the
| 13 | | unused credit shown on its final completed return carried over | 14 | | as a credit
against the tax liability for the following 5 | 15 | | taxable years or until it has
been fully used, whichever occurs | 16 | | first; provided that no credit earned in a tax year ending | 17 | | prior to December 31, 2003 may be carried forward to any year | 18 | | ending on or after December 31, 2003. | 19 | | If an unused credit is carried forward to a given year from | 20 | | 2 or more
earlier years, that credit arising in the earliest | 21 | | year will be applied
first against the tax liability for the | 22 | | given year. If a tax liability for
the given year still | 23 | | remains, the credit from the next earliest year will
then be | 24 | | applied, and so on, until all credits have been used or no tax
| 25 | | liability for the given year remains. Any remaining unused | 26 | | credit or
credits then will be carried forward to the next |
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| 1 | | following year in which a
tax liability is incurred, except | 2 | | that no credit can be carried forward to
a year which is more | 3 | | than 5 years after the year in which the expense for
which the | 4 | | credit is given was incurred. | 5 | | No inference shall be drawn from this amendatory Act of the | 6 | | 91st General
Assembly in construing this Section for taxable | 7 | | years beginning before January
1, 1999. | 8 | | It is the intent of the General Assembly that the research | 9 | | and development credit under this subsection (k) shall apply | 10 | | continuously for all tax years ending on or after December 31, | 11 | | 2004 and ending prior to January 1, 2022, including, but not | 12 | | limited to, the period beginning on January 1, 2016 and ending | 13 | | on the effective date of this amendatory Act of the 100th | 14 | | General Assembly. All actions taken in reliance on the | 15 | | continuation of the credit under this subsection (k) by any | 16 | | taxpayer are hereby validated. | 17 | | (l) Environmental Remediation Tax Credit. | 18 | | (i) For tax years ending after December 31, 1997 and on | 19 | | or before
December 31, 2001, a taxpayer shall be allowed a | 20 | | credit against the tax
imposed by subsections (a) and (b) | 21 | | of this Section for certain amounts paid
for unreimbursed | 22 | | eligible remediation costs, as specified in this | 23 | | subsection.
For purposes of this Section, "unreimbursed | 24 | | eligible remediation costs" means
costs approved by the | 25 | | Illinois Environmental Protection Agency ("Agency") under
| 26 | | Section 58.14 of the Environmental Protection Act that were |
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| 1 | | paid in performing
environmental remediation at a site for | 2 | | which a No Further Remediation Letter
was issued by the | 3 | | Agency and recorded under Section 58.10 of the | 4 | | Environmental
Protection Act. The credit must be claimed | 5 | | for the taxable year in which
Agency approval of the | 6 | | eligible remediation costs is granted. The credit is
not | 7 | | available to any taxpayer if the taxpayer or any related | 8 | | party caused or
contributed to, in any material respect, a | 9 | | release of regulated substances on,
in, or under the site | 10 | | that was identified and addressed by the remedial
action | 11 | | pursuant to the Site Remediation Program of the | 12 | | Environmental Protection
Act. After the Pollution Control | 13 | | Board rules are adopted pursuant to the
Illinois | 14 | | Administrative Procedure Act for the administration and | 15 | | enforcement of
Section 58.9 of the Environmental | 16 | | Protection Act, determinations as to credit
availability | 17 | | for purposes of this Section shall be made consistent with | 18 | | those
rules. For purposes of this Section, "taxpayer" | 19 | | includes a person whose tax
attributes the taxpayer has | 20 | | succeeded to under Section 381 of the Internal
Revenue Code | 21 | | and "related party" includes the persons disallowed a | 22 | | deduction
for losses by paragraphs (b), (c), and (f)(1) of | 23 | | Section 267 of the Internal
Revenue Code by virtue of being | 24 | | a related taxpayer, as well as any of its
partners. The | 25 | | credit allowed against the tax imposed by subsections (a) | 26 | | and
(b) shall be equal to 25% of the unreimbursed eligible |
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| 1 | | remediation costs in
excess of $100,000 per site, except | 2 | | that the $100,000 threshold shall not apply
to any site | 3 | | contained in an enterprise zone as determined by the | 4 | | Department of
Commerce and Community Affairs (now | 5 | | Department of Commerce and Economic Opportunity). The | 6 | | total credit allowed shall not exceed
$40,000 per year with | 7 | | a maximum total of $150,000 per site. For partners and
| 8 | | shareholders of subchapter S corporations, there shall be | 9 | | allowed a credit
under this subsection to be determined in | 10 | | accordance with the determination of
income and | 11 | | distributive share of income under Sections 702 and 704 and
| 12 | | subchapter S of the Internal Revenue Code. | 13 | | (ii) A credit allowed under this subsection that is | 14 | | unused in the year
the credit is earned may be carried | 15 | | forward to each of the 5 taxable years
following the year | 16 | | for which the credit is first earned until it is used.
The | 17 | | term "unused credit" does not include any amounts of | 18 | | unreimbursed eligible
remediation costs in excess of the | 19 | | maximum credit per site authorized under
paragraph (i). | 20 | | This credit shall be applied first to the earliest year
for | 21 | | which there is a liability. If there is a credit under this | 22 | | subsection
from more than one tax year that is available to | 23 | | offset a liability, the
earliest credit arising under this | 24 | | subsection shall be applied first. A
credit allowed under | 25 | | this subsection may be sold to a buyer as part of a sale
of | 26 | | all or part of the remediation site for which the credit |
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| 1 | | was granted. The
purchaser of a remediation site and the | 2 | | tax credit shall succeed to the unused
credit and remaining | 3 | | carry-forward period of the seller. To perfect the
| 4 | | transfer, the assignor shall record the transfer in the | 5 | | chain of title for the
site and provide written notice to | 6 | | the Director of the Illinois Department of
Revenue of the | 7 | | assignor's intent to sell the remediation site and the | 8 | | amount of
the tax credit to be transferred as a portion of | 9 | | the sale. In no event may a
credit be transferred to any | 10 | | taxpayer if the taxpayer or a related party would
not be | 11 | | eligible under the provisions of subsection (i). | 12 | | (iii) For purposes of this Section, the term "site" | 13 | | shall have the same
meaning as under Section 58.2 of the | 14 | | Environmental Protection Act. | 15 | | (m) Education expense credit. Beginning with tax years | 16 | | ending after
December 31, 1999, a taxpayer who
is the custodian | 17 | | of one or more qualifying pupils shall be allowed a credit
| 18 | | against the tax imposed by subsections (a) and (b) of this | 19 | | Section for
qualified education expenses incurred on behalf of | 20 | | the qualifying pupils.
The credit shall be equal to 25% of | 21 | | qualified education expenses, but in no
event may the total | 22 | | credit under this subsection claimed by a
family that is the
| 23 | | custodian of qualifying pupils exceed (i) $500 for tax years | 24 | | ending prior to December 31, 2017, and (ii) $750 for tax years | 25 | | ending on or after December 31, 2017. In no event shall a | 26 | | credit under
this subsection reduce the taxpayer's liability |
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| 1 | | under this Act to less than
zero. Notwithstanding any other | 2 | | provision of law, for taxable years beginning on or after | 3 | | January 1, 2017, no taxpayer may claim a credit under this | 4 | | subsection (m) if the taxpayer's adjusted gross income for the | 5 | | taxable year exceeds (i) $500,000, in the case of spouses | 6 | | filing a joint federal tax return or (ii) $250,000, in the case | 7 | | of all other taxpayers. This subsection is exempt from the | 8 | | provisions of Section 250 of this
Act. | 9 | | For purposes of this subsection: | 10 | | "Qualifying pupils" means individuals who (i) are | 11 | | residents of the State of
Illinois, (ii) are under the age of | 12 | | 21 at the close of the school year for
which a credit is | 13 | | sought, and (iii) during the school year for which a credit
is | 14 | | sought were full-time pupils enrolled in a kindergarten through | 15 | | twelfth
grade education program at any school, as defined in | 16 | | this subsection. | 17 | | "Qualified education expense" means the amount incurred
on | 18 | | behalf of a qualifying pupil in excess of $250 for tuition, | 19 | | book fees, and
lab fees at the school in which the pupil is | 20 | | enrolled during the regular school
year. | 21 | | "School" means any public or nonpublic elementary or | 22 | | secondary school in
Illinois that is in compliance with Title | 23 | | VI of the Civil Rights Act of 1964
and attendance at which | 24 | | satisfies the requirements of Section 26-1 of the
School Code, | 25 | | except that nothing shall be construed to require a child to
| 26 | | attend any particular public or nonpublic school to qualify for |
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| 1 | | the credit
under this Section. | 2 | | "Custodian" means, with respect to qualifying pupils, an | 3 | | Illinois resident
who is a parent, the parents, a legal | 4 | | guardian, or the legal guardians of the
qualifying pupils. | 5 | | (n) River Edge Redevelopment Zone site remediation tax | 6 | | credit.
| 7 | | (i) For tax years ending on or after December 31, 2006, | 8 | | a taxpayer shall be allowed a credit against the tax | 9 | | imposed by subsections (a) and (b) of this Section for | 10 | | certain amounts paid for unreimbursed eligible remediation | 11 | | costs, as specified in this subsection. For purposes of | 12 | | this Section, "unreimbursed eligible remediation costs" | 13 | | means costs approved by the Illinois Environmental | 14 | | Protection Agency ("Agency") under Section 58.14a of the | 15 | | Environmental Protection Act that were paid in performing | 16 | | environmental remediation at a site within a River Edge | 17 | | Redevelopment Zone for which a No Further Remediation | 18 | | Letter was issued by the Agency and recorded under Section | 19 | | 58.10 of the Environmental Protection Act. The credit must | 20 | | be claimed for the taxable year in which Agency approval of | 21 | | the eligible remediation costs is granted. The credit is | 22 | | not available to any taxpayer if the taxpayer or any | 23 | | related party caused or contributed to, in any material | 24 | | respect, a release of regulated substances on, in, or under | 25 | | the site that was identified and addressed by the remedial | 26 | | action pursuant to the Site Remediation Program of the |
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| 1 | | Environmental Protection Act. Determinations as to credit | 2 | | availability for purposes of this Section shall be made | 3 | | consistent with rules adopted by the Pollution Control | 4 | | Board pursuant to the Illinois Administrative Procedure | 5 | | Act for the administration and enforcement of Section 58.9 | 6 | | of the Environmental Protection Act. For purposes of this | 7 | | Section, "taxpayer" includes a person whose tax attributes | 8 | | the taxpayer has succeeded to under Section 381 of the | 9 | | Internal Revenue Code and "related party" includes the | 10 | | persons disallowed a deduction for losses by paragraphs | 11 | | (b), (c), and (f)(1) of Section 267 of the Internal Revenue | 12 | | Code by virtue of being a related taxpayer, as well as any | 13 | | of its partners. The credit allowed against the tax imposed | 14 | | by subsections (a) and (b) shall be equal to 25% of the | 15 | | unreimbursed eligible remediation costs in excess of | 16 | | $100,000 per site. | 17 | | (ii) A credit allowed under this subsection that is | 18 | | unused in the year the credit is earned may be carried | 19 | | forward to each of the 5 taxable years following the year | 20 | | for which the credit is first earned until it is used. This | 21 | | credit shall be applied first to the earliest year for | 22 | | which there is a liability. If there is a credit under this | 23 | | subsection from more than one tax year that is available to | 24 | | offset a liability, the earliest credit arising under this | 25 | | subsection shall be applied first. A credit allowed under | 26 | | this subsection may be sold to a buyer as part of a sale of |
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| 1 | | all or part of the remediation site for which the credit | 2 | | was granted. The purchaser of a remediation site and the | 3 | | tax credit shall succeed to the unused credit and remaining | 4 | | carry-forward period of the seller. To perfect the | 5 | | transfer, the assignor shall record the transfer in the | 6 | | chain of title for the site and provide written notice to | 7 | | the Director of the Illinois Department of Revenue of the | 8 | | assignor's intent to sell the remediation site and the | 9 | | amount of the tax credit to be transferred as a portion of | 10 | | the sale. In no event may a credit be transferred to any | 11 | | taxpayer if the taxpayer or a related party would not be | 12 | | eligible under the provisions of subsection (i). | 13 | | (iii) For purposes of this Section, the term "site" | 14 | | shall have the same meaning as under Section 58.2 of the | 15 | | Environmental Protection Act. | 16 | | (o) For each of taxable years during the Compassionate Use | 17 | | of Medical Cannabis Pilot Program, a surcharge is imposed on | 18 | | all taxpayers on income arising from the sale or exchange of | 19 | | capital assets, depreciable business property, real property | 20 | | used in the trade or business, and Section 197 intangibles of | 21 | | an organization registrant under the Compassionate Use of | 22 | | Medical Cannabis Pilot Program Act. The amount of the surcharge | 23 | | is equal to the amount of federal income tax liability for the | 24 | | taxable year attributable to those sales and exchanges. The | 25 | | surcharge imposed does not apply if: | 26 | | (1) the medical cannabis cultivation center |
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| 1 | | registration, medical cannabis dispensary registration, or | 2 | | the property of a registration is transferred as a result | 3 | | of any of the following: | 4 | | (A) bankruptcy, a receivership, or a debt | 5 | | adjustment initiated by or against the initial | 6 | | registration or the substantial owners of the initial | 7 | | registration; | 8 | | (B) cancellation, revocation, or termination of | 9 | | any registration by the Illinois Department of Public | 10 | | Health; | 11 | | (C) a determination by the Illinois Department of | 12 | | Public Health that transfer of the registration is in | 13 | | the best interests of Illinois qualifying patients as | 14 | | defined by the Compassionate Use of Medical Cannabis | 15 | | Pilot Program Act; | 16 | | (D) the death of an owner of the equity interest in | 17 | | a registrant; | 18 | | (E) the acquisition of a controlling interest in | 19 | | the stock or substantially all of the assets of a | 20 | | publicly traded company; | 21 | | (F) a transfer by a parent company to a wholly | 22 | | owned subsidiary; or | 23 | | (G) the transfer or sale to or by one person to | 24 | | another person where both persons were initial owners | 25 | | of the registration when the registration was issued; | 26 | | or |
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| 1 | | (2) the cannabis cultivation center registration, | 2 | | medical cannabis dispensary registration, or the | 3 | | controlling interest in a registrant's property is | 4 | | transferred in a transaction to lineal descendants in which | 5 | | no gain or loss is recognized or as a result of a | 6 | | transaction in accordance with Section 351 of the Internal | 7 | | Revenue Code in which no gain or loss is recognized. | 8 | | (Source: P.A. 100-22, eff. 7-6-17.) | 9 | | (35 ILCS 5/201.1 new) | 10 | | Sec. 201.1. Tax rates. In the case of an individual, trust, | 11 | | or estate, for taxable years beginning on or after January 1, | 12 | | 2021, the amount of the tax imposed by subsection (a) of | 13 | | Section 201 of this Act shall be determined according to the | 14 | | following tax rate structure: | 15 | | (1) for taxpayers who do not file a joint return and | 16 | | have a net income of $750,000 or less: | 17 | | (A) 4.75% of the portion of the taxpayer's net | 18 | | income that does not exceed $10,000; | 19 | | (B) 4.9% of the portion of the taxpayer's net | 20 | | income that exceeds $10,000 but does not exceed | 21 | | $100,000; | 22 | | (C) 4.95% of the portion of the taxpayer's net | 23 | | income that exceeds $100,000 but does not exceed | 24 | | $250,000; | 25 | | (D) 7.75% of the portion of the taxpayer's net |
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| 1 | | income that exceeds $250,000 but does not exceed | 2 | | $350,000; and | 3 | | (E) 7.85% of the portion of the taxpayer's net | 4 | | income that exceeds $350,000 but does not exceed | 5 | | $750,000; and | 6 | | (2) for taxpayers who do not file a joint return and | 7 | | have a net income that exceeds $750,000, 7.99% of the | 8 | | taxpayer's net income; | 9 | | (3) for taxpayers who file a joint return and have a | 10 | | net income of $1,000,000 or less: | 11 | | (A) 4.75% of the portion of the taxpayer's net | 12 | | income that does not exceed $10,000; | 13 | | (B) 4.9% of the portion of the taxpayer's net | 14 | | income that exceeds $10,000 but does not exceed | 15 | | $100,000; | 16 | | (C) 4.95% of the portion of the taxpayer's net | 17 | | income that exceeds $100,000 but does not exceed | 18 | | $250,000; | 19 | | (D) 7.75% of the portion of the taxpayer's net | 20 | | income that exceeds $250,000 but does not exceed | 21 | | $500,000; and | 22 | | (E) 7.85% of the portion of the taxpayer's net | 23 | | income that exceeds $500,000 but does not exceed | 24 | | $1,000,000; and | 25 | | (4) for taxpayers who file a joint return and have a | 26 | | net income of more than $1,000,000, 7.99% of the taxpayer's |
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| 1 | | net income.
| 2 | | (35 ILCS 5/208) (from Ch. 120, par. 2-208)
| 3 | | Sec. 208. Tax credit for residential real property taxes. | 4 | | For Beginning with tax years ending on or after December 31, | 5 | | 1991 and ending prior to December 31, 2021 ,
every individual | 6 | | taxpayer shall be entitled to a tax credit equal
to 5% of real | 7 | | property taxes paid by such taxpayer during the
taxable year on | 8 | | the principal residence of the taxpayer. For tax years ending | 9 | | on or after December 31, 2021, every individual taxpayer shall | 10 | | be entitled to a tax credit equal
to 6% of real property taxes | 11 | | paid by such taxpayer during the
taxable year on the principal | 12 | | residence of the taxpayer. In the
case of multi-unit or | 13 | | multi-use structures and farm dwellings,
the taxes on the | 14 | | taxpayer's principal residence shall be that
portion of the | 15 | | total taxes which is attributable to such principal
residence. | 16 | | Notwithstanding any other provision of law, for taxable years | 17 | | beginning on or after January 1, 2017, no taxpayer may claim a | 18 | | credit under this Section if the taxpayer's adjusted gross | 19 | | income for the taxable year exceeds (i) $500,000, in the case | 20 | | of spouses filing a joint federal tax return, or (ii) $250,000, | 21 | | in the case of all other taxpayers. This Section is exempt from | 22 | | the provisions of Section 250.
| 23 | | (Source: P.A. 100-22, eff. 7-6-17.)
| 24 | | (35 ILCS 5/229 new) |
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| 1 | | Sec. 229. Child tax credit. | 2 | | (a) For taxable years beginning on or after January 1, | 3 | | 2021, there shall be allowed as a credit against the tax | 4 | | imposed by Section 201 for the taxable year with respect to | 5 | | each child of the taxpayer who is under the age of 17 and for | 6 | | whom the taxpayer is allowed an additional exemption under | 7 | | Section 204 an amount equal to $100. | 8 | | (b) The amount of the credit allowed under subsection (a) | 9 | | shall be reduced by $5 for each $2,000 by which the taxpayer's | 10 | | net income exceeds $60,000 in the case of a joint return or | 11 | | exceeds $40,000 in the case of any other form of return. | 12 | | (c) In no event shall a credit under this Section reduce | 13 | | the taxpayer's liability to less than zero. | 14 | | (d) This Section is exempt from the provisions of Section | 15 | | 250.
| 16 | | (35 ILCS 5/502) (from Ch. 120, par. 5-502)
| 17 | | Sec. 502. Returns and notices.
| 18 | | (a) In general. A return with respect to the taxes imposed | 19 | | by this
Act shall be made by every person for any taxable year:
| 20 | | (1) for which such person is liable for a tax imposed | 21 | | by this Act,
or
| 22 | | (2) in the case of a resident or in the case of a | 23 | | corporation which
is qualified to do business in this | 24 | | State, for which such person is
required to make a federal | 25 | | income tax return, regardless of whether such
person is |
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| 1 | | liable for a tax imposed by this Act. However, this | 2 | | paragraph
shall not require a resident to make a return if | 3 | | such person has
an
Illinois base income of the basic amount | 4 | | in Section 204(b) or
less and is either claimed as a | 5 | | dependent on
another person's tax return under the Internal | 6 | | Revenue Code, or is
claimed as a dependent on another | 7 | | person's tax return under this Act.
| 8 | | Notwithstanding the provisions of paragraph (1), a | 9 | | nonresident (other than, for taxable years ending on or after | 10 | | December 31, 2011, a nonresident required to withhold tax under | 11 | | Section 709.5) whose Illinois income tax liability under | 12 | | subsections (a), (b), (c), and (d) of Section 201 of this Act | 13 | | is paid in full after taking into account the credits allowed | 14 | | under subsection (f) of this Section or allowed under Section | 15 | | 709.5 of this Act shall not be required to file a return under | 16 | | this subsection (a).
| 17 | | (b) Fiduciaries and receivers.
| 18 | | (1) Decedents. If an individual is deceased, any return | 19 | | or notice
required of such individual under this Act shall | 20 | | be made by his
executor, administrator, or other person | 21 | | charged with the property of
such decedent.
| 22 | | (2) Individuals under a disability. If an individual is | 23 | | unable
to make a return or notice required under this Act, | 24 | | the return or notice
required of such individual shall be | 25 | | made by his duly authorized agent,
guardian, fiduciary or | 26 | | other person charged with the care
of the person or |
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| 1 | | property of such individual.
| 2 | | (3) Estates and trusts. Returns or notices required of | 3 | | an estate
or a trust shall be made by the fiduciary | 4 | | thereof.
| 5 | | (4) Receivers, trustees and assignees for | 6 | | corporations. In a
case where a receiver, trustee in | 7 | | bankruptcy, or assignee, by order of a
court of competent | 8 | | jurisdiction, by operation of law, or otherwise, has
| 9 | | possession of or holds title to all or substantially all | 10 | | the property or
business of a corporation, whether or not | 11 | | such property or business is
being operated, such receiver, | 12 | | trustee, or assignee shall make the
returns and notices | 13 | | required of such corporation in the same manner and
form as | 14 | | corporations are required to make such returns and notices.
| 15 | | (c) Joint returns by spouses husband and wife .
| 16 | | (1) Except as provided in paragraph (3): | 17 | | (A) if spouses a husband and wife file a
joint | 18 | | federal income tax return for a taxable year ending | 19 | | before December 31, 2009 or ending on or after December | 20 | | 31, 2021 , they shall file a joint
return under this Act | 21 | | for such taxable year and their liabilities shall be
| 22 | | joint and several; | 23 | | (B) if spouses a husband and wife file a joint | 24 | | federal income tax return for a taxable year ending on | 25 | | or after December 31, 2009 and ending prior to December | 26 | | 31, 2021 , they may elect to file separate returns under |
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| 1 | | this Act for such taxable year. The election under this | 2 | | paragraph must be made on or before the due date | 3 | | (including extensions) of the return and, once made, | 4 | | shall be irrevocable. If no election is timely made | 5 | | under this paragraph for a taxable year: | 6 | | (i) the couple must file a joint return under | 7 | | this Act for such taxable year, | 8 | | (ii) their liabilities shall be joint and | 9 | | several, and | 10 | | (iii) any overpayment for that taxable year | 11 | | may be withheld under Section 909 of this Act or | 12 | | under Section 2505-275 of the Civil Administrative | 13 | | Code of Illinois and applied against a debt of | 14 | | either spouse without regard to the amount of the | 15 | | overpayment attributable to the other spouse; and | 16 | | (C) if the federal income tax liability of either | 17 | | spouse is
determined on a separate federal income tax | 18 | | return, they shall file separate
returns under this | 19 | | Act.
| 20 | | (2) If neither spouse is required to file a federal | 21 | | income tax
return and either or both are required to file a | 22 | | return under this Act,
they may elect to file separate or | 23 | | joint returns and pursuant to such
election their | 24 | | liabilities shall be separate or joint and several.
| 25 | | (3) If either spouse husband or wife is a resident and | 26 | | the other is a
nonresident, they shall file separate |
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| 1 | | returns in this State on such
forms as may be required by | 2 | | the Department in which event their tax
liabilities shall | 3 | | be separate; but if , for taxable years ending prior to | 4 | | December 31, 2021, they file a joint federal income tax | 5 | | return for a taxable year, they may elect to determine | 6 | | their
joint net income and file a joint return for that | 7 | | taxable year under the provisions of paragraph (1) of this | 8 | | subsection as if both were residents and
in such case, | 9 | | their liabilities shall be joint and several. For taxable | 10 | | years ending on or after December 31, 2021, if such spouses | 11 | | file a joint federal income tax return for a taxable year, | 12 | | they shall determine their
joint net income and file a | 13 | | joint return for that taxable year under the provisions of | 14 | | paragraph (1) of this subsection as if both were residents, | 15 | | and,
in such case, their liabilities shall be joint and | 16 | | several.
| 17 | | (4) Innocent spouses.
| 18 | | (A) However, for tax liabilities arising and paid | 19 | | prior to August 13,
1999, an innocent spouse shall be | 20 | | relieved of
liability for tax
(including interest and | 21 | | penalties) for any taxable year for which a joint
| 22 | | return has been made, upon submission of proof that the | 23 | | Internal Revenue
Service has made a determination | 24 | | under Section 6013(e) of the Internal
Revenue Code, for | 25 | | the same taxable year, which determination relieved | 26 | | the
spouse from liability for federal income taxes.
If |
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| 1 | | there is no federal income tax liability at issue for | 2 | | the
same taxable year, the Department shall rely on the | 3 | | provisions of Section
6013(e) to determine whether the | 4 | | person requesting innocent spouse abatement of
tax, | 5 | | penalty, and interest is entitled to that relief.
| 6 | | (B) For tax liabilities arising on and after August | 7 | | 13, 1999 or which arose prior to that date, but remain | 8 | | unpaid as of that date, if
an individual
who filed a | 9 | | joint return for any taxable year has made an election | 10 | | under this
paragraph, the individual's liability for | 11 | | any tax shown on the joint return
shall not exceed the | 12 | | individual's separate return amount and the | 13 | | individual's
liability for any deficiency assessed for | 14 | | that taxable year shall not exceed
the portion of the | 15 | | deficiency properly allocable to the individual. For
| 16 | | purposes of this paragraph:
| 17 | | (i) An election properly made pursuant to | 18 | | Section 6015 of the Internal
Revenue Code shall | 19 | | constitute an election under this paragraph, | 20 | | provided that
the election shall not be effective | 21 | | until the individual has notified the
Department | 22 | | of the election in the form and manner prescribed | 23 | | by the Department.
| 24 | | (ii) If no election has been made under Section | 25 | | 6015, the individual
may make an election under | 26 | | this paragraph in the form and manner prescribed by
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| 1 | | the Department, provided that no election may be | 2 | | made if the Department finds
that assets were | 3 | | transferred
between individuals filing a joint | 4 | | return as part of a scheme by such
individuals to | 5 | | avoid payment of Illinois income tax and the | 6 | | election shall not
eliminate the individual's | 7 | | liability for any portion of a deficiency
| 8 | | attributable to an error on the return of which the | 9 | | individual had actual
knowledge as of the date of | 10 | | filing.
| 11 | | (iii) In determining the separate return | 12 | | amount or portion of any
deficiency attributable | 13 | | to an individual, the Department shall follow the
| 14 | | provisions in subsections (c) and (d) of Section | 15 | | 6015 of the Internal Revenue Code.
| 16 | | (iv) In determining the validity of an | 17 | | individual's election under
subparagraph (ii) and | 18 | | in determining an electing individual's separate | 19 | | return
amount or portion of any deficiency under | 20 | | subparagraph (iii), any determination
made by the | 21 | | Secretary of the Treasury, by the United States Tax | 22 | | Court on
petition for review of a determination by | 23 | | the Secretary of the Treasury, or on
appeal from | 24 | | the United States Tax Court under Section 6015 of
| 25 | | the Internal
Revenue Code regarding criteria for | 26 | | eligibility or under subsection (d) of
Section |
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| 1 | | 6015
of the Internal Revenue Code regarding the | 2 | | allocation of any item of income,
deduction, | 3 | | payment, or credit between an individual making | 4 | | the federal election
and that individual's spouse | 5 | | shall be conclusively presumed to be correct.
With | 6 | | respect to any item that is not the subject of a | 7 | | determination by the
Secretary of the Treasury or | 8 | | the federal courts, in any proceeding
involving | 9 | | this subsection, the
individual making the | 10 | | election shall have the burden of proof with | 11 | | respect to
any item except that the Department | 12 | | shall have the burden of proof with respect
to | 13 | | items in subdivision (ii).
| 14 | | (v) Any election made by an individual under | 15 | | this subsection shall
apply to all years for which | 16 | | that individual and the spouse named in the
| 17 | | election have filed a joint return.
| 18 | | (vi) After receiving a notice that the federal | 19 | | election has been made
or after receiving an | 20 | | election under subdivision (ii), the Department | 21 | | shall
take no collection action against the | 22 | | electing individual for any liability
arising from | 23 | | a joint return covered by the election until the | 24 | | Department has
notified the electing individual in | 25 | | writing that the election is invalid or of
the | 26 | | portion of the liability the Department has |
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| 1 | | allocated to the electing
individual. Within 60 | 2 | | days (150 days if the individual is outside the | 3 | | United
States) after the issuance of such | 4 | | notification, the individual may file a
written | 5 | | protest of the denial of the election or of the | 6 | | Department's
determination of the liability | 7 | | allocated to him or her and shall be granted a
| 8 | | hearing within the Department under the provisions | 9 | | of Section 908. If a
protest is filed, the | 10 | | Department shall take no collection action against | 11 | | the
electing individual until the decision | 12 | | regarding the protest has become final
under | 13 | | subsection (d) of Section 908 or, if | 14 | | administrative review of the
Department's decision
| 15 | | is requested under Section 1201, until the | 16 | | decision of the court becomes
final.
| 17 | | (d) Partnerships. Every partnership having any base income
| 18 | | allocable to this State in accordance with section 305(c) shall | 19 | | retain
information concerning all items of income, gain, loss | 20 | | and
deduction; the names and addresses of all of the partners, | 21 | | or names and
addresses of members of a limited liability | 22 | | company, or other
persons who would be entitled to share in the | 23 | | base income of the
partnership if distributed; the amount of | 24 | | the distributive share of
each; and such other pertinent | 25 | | information as the Department may by
forms or regulations | 26 | | prescribe. The partnership shall make that information
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| 1 | | available to the Department when requested by the Department.
| 2 | | (e) For taxable years ending on or after December 31, 1985, | 3 | | and before
December 31, 1993, taxpayers
that are corporations | 4 | | (other than Subchapter S corporations) having the
same taxable | 5 | | year and that are members of the same unitary business group
| 6 | | may elect to be treated as one taxpayer for purposes of any | 7 | | original return,
amended return which includes the same | 8 | | taxpayers of the unitary group which
joined in the election to | 9 | | file the original return, extension, claim for
refund, | 10 | | assessment, collection and payment and determination of the
| 11 | | group's tax liability under this Act. This subsection (e) does | 12 | | not permit the
election to be made for some, but not all, of | 13 | | the purposes enumerated above.
For taxable years ending on or | 14 | | after December 31, 1987, corporate members
(other than | 15 | | Subchapter S corporations) of the same unitary business group
| 16 | | making this subsection (e) election are not required to have | 17 | | the same taxable
year.
| 18 | | For taxable years ending on or after December 31, 1993, | 19 | | taxpayers that are
corporations (other than Subchapter S | 20 | | corporations) and that are members of
the same unitary business | 21 | | group shall be treated as one taxpayer for purposes
of any | 22 | | original return, amended return which includes the same | 23 | | taxpayers of the
unitary group which joined in filing the | 24 | | original return, extension, claim for
refund, assessment, | 25 | | collection and payment and determination of the group's tax
| 26 | | liability under this Act.
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| 1 | | (f) For taxable years ending prior to December 31, 2014, | 2 | | the Department may promulgate regulations to permit | 3 | | nonresident
individual partners of the same partnership, | 4 | | nonresident Subchapter S
corporation shareholders of the same | 5 | | Subchapter S corporation, and
nonresident individuals | 6 | | transacting an insurance business in Illinois under
a Lloyds | 7 | | plan of operation, and nonresident individual members of the | 8 | | same
limited liability company that is treated as a partnership | 9 | | under Section 1501
(a)(16) of this Act, to file composite | 10 | | individual income tax returns
reflecting the composite income | 11 | | of such individuals allocable to Illinois
and to make composite | 12 | | individual income tax payments. For taxable years ending prior | 13 | | to December 31, 2014, the Department may
by regulation also | 14 | | permit such composite returns to include the income tax
owed by | 15 | | Illinois residents attributable to their income from | 16 | | partnerships,
Subchapter S corporations, insurance businesses | 17 | | organized under a Lloyds
plan of operation, or limited | 18 | | liability companies that are treated as
partnership under | 19 | | Section 1501(a)(16) of this Act, in which case such
Illinois | 20 | | residents will be permitted to claim credits on their | 21 | | individual
returns for their shares of the composite tax | 22 | | payments. This paragraph of
subsection (f) applies to taxable | 23 | | years ending on or after December 31, 1987 and ending prior to | 24 | | December 31, 2014.
| 25 | | For taxable years ending on or after December 31, 1999, the | 26 | | Department may,
by regulation, permit any persons transacting |
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| 1 | | an insurance business
organized under a Lloyds plan of | 2 | | operation to file composite returns reflecting
the income of | 3 | | such persons allocable to Illinois and the tax rates applicable
| 4 | | to such persons under Section 201 and to make composite tax | 5 | | payments and shall,
by regulation, also provide that the income | 6 | | and apportionment factors
attributable to the transaction of an | 7 | | insurance business organized under a
Lloyds plan of operation | 8 | | by any person joining in the filing of a composite
return | 9 | | shall, for purposes of allocating and apportioning income under | 10 | | Article
3 of this Act and computing net income under Section | 11 | | 202 of this Act, be
excluded from any other income and | 12 | | apportionment factors of that person or of
any unitary business | 13 | | group, as defined in subdivision (a)(27) of Section 1501,
to | 14 | | which that person may belong.
| 15 | | For taxable years ending on or after December 31, 2008, | 16 | | every nonresident shall be allowed a credit against his or her | 17 | | liability under subsections (a) and (b) of Section 201 for any | 18 | | amount of tax reported on a composite return and paid on his or | 19 | | her behalf under this subsection (f). Residents (other than | 20 | | persons transacting an insurance business organized under a | 21 | | Lloyds plan of operation) may claim a credit for taxes reported | 22 | | on a composite return and paid on their behalf under this | 23 | | subsection (f) only as permitted by the Department by rule.
| 24 | | (f-5) For taxable years ending on or after December 31, | 25 | | 2008, the Department may adopt rules to provide that, when a | 26 | | partnership or Subchapter S corporation has made an error in |
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| 1 | | determining the amount of any item of income, deduction, | 2 | | addition, subtraction, or credit required to be reported on its | 3 | | return that affects the liability imposed under this Act on a | 4 | | partner or shareholder, the partnership or Subchapter S | 5 | | corporation may report the changes in liabilities of its | 6 | | partners or shareholders and claim a refund of the resulting | 7 | | overpayments, or pay the resulting underpayments, on behalf of | 8 | | its partners and shareholders.
| 9 | | (g) The Department may adopt rules to authorize the | 10 | | electronic filing of
any return required to be filed under this | 11 | | Section.
| 12 | | (Source: P.A. 97-507, eff. 8-23-11; 98-478, eff. 1-1-14.)
| 13 | | (35 ILCS 5/901) (from Ch. 120, par. 9-901) | 14 | | Sec. 901. Collection authority. | 15 | | (a) In general. The Department shall collect the taxes | 16 | | imposed by this Act. The Department
shall collect certified | 17 | | past due child support amounts under Section 2505-650
of the | 18 | | Department of Revenue Law of the
Civil Administrative Code of | 19 | | Illinois. Except as
provided in subsections (b), (c), (e), (f), | 20 | | (g), and (h) of this Section, money collected
pursuant to | 21 | | subsections (a) and (b) of Section 201 of this Act shall be
| 22 | | paid into the General Revenue Fund in the State treasury; money
| 23 | | collected pursuant to subsections (c) and (d) of Section 201 of | 24 | | this Act
shall be paid into the Personal Property Tax | 25 | | Replacement Fund, a special
fund in the State Treasury; and |
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| 1 | | money collected under Section 2505-650 of the
Department of | 2 | | Revenue Law of the
Civil Administrative Code of Illinois shall | 3 | | be paid
into the
Child Support Enforcement Trust Fund, a | 4 | | special fund outside the State
Treasury, or
to the State
| 5 | | Disbursement Unit established under Section 10-26 of the | 6 | | Illinois Public Aid
Code, as directed by the Department of | 7 | | Healthcare and Family Services. | 8 | | (b) Local Government Distributive Fund. Beginning August | 9 | | 1, 1969, and continuing through June 30, 1994, the Treasurer
| 10 | | shall transfer each month from the General Revenue Fund to a | 11 | | special fund in
the State treasury, to be known as the "Local | 12 | | Government Distributive Fund", an
amount equal to 1/12 of the | 13 | | net revenue realized from the tax imposed by
subsections (a) | 14 | | and (b) of Section 201 of this Act during the preceding month.
| 15 | | Beginning July 1, 1994, and continuing through June 30, 1995, | 16 | | the Treasurer
shall transfer each month from the General | 17 | | Revenue Fund to the Local Government
Distributive Fund an | 18 | | amount equal to 1/11 of the net revenue realized from the
tax | 19 | | imposed by subsections (a) and (b) of Section 201 of this Act | 20 | | during the
preceding month. Beginning July 1, 1995 and | 21 | | continuing through January 31, 2011, the Treasurer shall | 22 | | transfer each
month from the General Revenue Fund to the Local | 23 | | Government Distributive Fund
an amount equal to the net of (i) | 24 | | 1/10 of the net revenue realized from the
tax imposed by
| 25 | | subsections (a) and (b) of Section 201 of the Illinois Income | 26 | | Tax Act during
the preceding month
(ii) minus, beginning July |
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| 1 | | 1, 2003 and ending June 30, 2004, $6,666,666, and
beginning | 2 | | July 1,
2004,
zero. Beginning February 1, 2011, and continuing | 3 | | through January 31, 2015, the Treasurer shall transfer each | 4 | | month from the General Revenue Fund to the Local Government | 5 | | Distributive Fund an amount equal to the sum of (i) 6% (10% of | 6 | | the ratio of the 3% individual income tax rate prior to 2011 to | 7 | | the 5% individual income tax rate after 2010) of the net | 8 | | revenue realized from the tax imposed by subsections (a) and | 9 | | (b) of Section 201 of this Act upon individuals, trusts, and | 10 | | estates during the preceding month and (ii) 6.86% (10% of the | 11 | | ratio of the 4.8% corporate income tax rate prior to 2011 to | 12 | | the 7% corporate income tax rate after 2010) of the net revenue | 13 | | realized from the tax imposed by subsections (a) and (b) of | 14 | | Section 201 of this Act upon corporations during the preceding | 15 | | month. Beginning February 1, 2015 and continuing through July | 16 | | 31, 2017, the Treasurer shall transfer each month from the | 17 | | General Revenue Fund to the Local Government Distributive Fund | 18 | | an amount equal to the sum of (i) 8% (10% of the ratio of the 3% | 19 | | individual income tax rate prior to 2011 to the 3.75% | 20 | | individual income tax rate after 2014) of the net revenue | 21 | | realized from the tax imposed by subsections (a) and (b) of | 22 | | Section 201 of this Act upon individuals, trusts, and estates | 23 | | during the preceding month and (ii) 9.14% (10% of the ratio of | 24 | | the 4.8% corporate income tax rate prior to 2011 to the 5.25% | 25 | | corporate income tax rate after 2014) of the net revenue | 26 | | realized from the tax imposed by subsections (a) and (b) of |
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| 1 | | Section 201 of this Act upon corporations during the preceding | 2 | | month. Beginning August 1, 2017 and continuing through January | 3 | | 31, 2021 , the Treasurer shall transfer each month from the | 4 | | General Revenue Fund to the Local Government Distributive Fund | 5 | | an amount equal to the sum of (i) 6.06% (10% of the ratio of the | 6 | | 3% individual income tax rate prior to 2011 to the 4.95% | 7 | | individual income tax rate after July 1, 2017) of the net | 8 | | revenue realized from the tax imposed by subsections (a) and | 9 | | (b) of Section 201 of this Act upon individuals, trusts, and | 10 | | estates during the preceding month and (ii) 6.85% (10% of the | 11 | | ratio of the 4.8% corporate income tax rate prior to 2011 to | 12 | | the 7% corporate income tax rate after July 1, 2017) of the net | 13 | | revenue realized from the tax imposed by subsections (a) and | 14 | | (b) of Section 201 of this Act upon corporations during the | 15 | | preceding month. Beginning on February 1, 2021, the Treasurer | 16 | | shall transfer each month from the General Revenue Fund to the | 17 | | Local Government Distributive Fund an amount equal to 10.75% of | 18 | | the amount that would have been generated under subsections (a) | 19 | | and (b) of Section 201 if the taxes had been imposed at the | 20 | | rate of 3% for individuals, trusts, and estates and at the rate | 21 | | of 4.8% for corporations. Net revenue realized for a month | 22 | | shall be defined as the
revenue from the tax imposed by | 23 | | subsections (a) and (b) of Section 201 of this
Act which is | 24 | | deposited in the General Revenue Fund, the Education Assistance
| 25 | | Fund, the Income Tax Surcharge Local Government Distributive | 26 | | Fund, the Fund for the Advancement of Education, and the |
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| 1 | | Commitment to Human Services Fund during the
month minus the | 2 | | amount paid out of the General Revenue Fund in State warrants
| 3 | | during that same month as refunds to taxpayers for overpayment | 4 | | of liability
under the tax imposed by subsections (a) and (b) | 5 | | of Section 201 of this Act. | 6 | | Notwithstanding any provision of law to the contrary, | 7 | | beginning on July 6, 2017 (the effective date of Public Act | 8 | | 100-23), those amounts required under this subsection (b) to be | 9 | | transferred by the Treasurer into the Local Government | 10 | | Distributive Fund from the General Revenue Fund shall be | 11 | | directly deposited into the Local Government Distributive Fund | 12 | | as the revenue is realized from the tax imposed by subsections | 13 | | (a) and (b) of Section 201 of this Act. | 14 | | For State fiscal year 2018 only, notwithstanding any | 15 | | provision of law to the contrary, the total amount of revenue | 16 | | and deposits under this Section attributable to revenues | 17 | | realized during State fiscal year 2018 shall be reduced by 10%. | 18 | | For State fiscal year 2019 only, notwithstanding any | 19 | | provision of law to the contrary, the total amount of revenue | 20 | | and deposits under this Section attributable to revenues | 21 | | realized during State fiscal year 2019 shall be reduced by 5%. | 22 | | (c) Deposits Into Income Tax Refund Fund. | 23 | | (1) Beginning on January 1, 1989 and thereafter, the | 24 | | Department shall
deposit a percentage of the amounts | 25 | | collected pursuant to subsections (a)
and (b)(1), (2), and | 26 | | (3) of Section 201 of this Act into a fund in the State
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| 1 | | treasury known as the Income Tax Refund Fund. The | 2 | | Department shall deposit 6%
of such amounts during the | 3 | | period beginning January 1, 1989 and ending on June
30, | 4 | | 1989. Beginning with State fiscal year 1990 and for each | 5 | | fiscal year
thereafter, the percentage deposited into the | 6 | | Income Tax Refund Fund during a
fiscal year shall be the | 7 | | Annual Percentage. For fiscal years 1999 through
2001, the | 8 | | Annual Percentage shall be 7.1%.
For fiscal year 2003, the | 9 | | Annual Percentage shall be 8%.
For fiscal year 2004, the | 10 | | Annual Percentage shall be 11.7%. Upon the effective date | 11 | | of Public Act 93-839 (July 30, 2004), the Annual Percentage | 12 | | shall be 10% for fiscal year 2005. For fiscal year 2006, | 13 | | the Annual Percentage shall be 9.75%. For fiscal
year 2007, | 14 | | the Annual Percentage shall be 9.75%. For fiscal year 2008, | 15 | | the Annual Percentage shall be 7.75%. For fiscal year 2009, | 16 | | the Annual Percentage shall be 9.75%. For fiscal year 2010, | 17 | | the Annual Percentage shall be 9.75%. For fiscal year 2011, | 18 | | the Annual Percentage shall be 8.75%. For fiscal year 2012, | 19 | | the Annual Percentage shall be 8.75%. For fiscal year 2013, | 20 | | the Annual Percentage shall be 9.75%. For fiscal year 2014, | 21 | | the Annual Percentage shall be 9.5%. For fiscal year 2015, | 22 | | the Annual Percentage shall be 10%. For fiscal year 2018, | 23 | | the Annual Percentage shall be 9.8%. For fiscal year 2019, | 24 | | the Annual Percentage shall be 9.7%. For all other
fiscal | 25 | | years, the
Annual Percentage shall be calculated as a | 26 | | fraction, the numerator of which
shall be the amount of |
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| 1 | | refunds approved for payment by the Department during
the | 2 | | preceding fiscal year as a result of overpayment of tax | 3 | | liability under
subsections (a) and (b)(1), (2), and (3) of | 4 | | Section 201 of this Act plus the
amount of such refunds | 5 | | remaining approved but unpaid at the end of the
preceding | 6 | | fiscal year, minus the amounts transferred into the Income | 7 | | Tax
Refund Fund from the Tobacco Settlement Recovery Fund, | 8 | | and
the denominator of which shall be the amounts which | 9 | | will be collected pursuant
to subsections (a) and (b)(1), | 10 | | (2), and (3) of Section 201 of this Act during
the | 11 | | preceding fiscal year; except that in State fiscal year | 12 | | 2002, the Annual
Percentage shall in no event exceed 7.6%. | 13 | | The Director of Revenue shall
certify the Annual Percentage | 14 | | to the Comptroller on the last business day of
the fiscal | 15 | | year immediately preceding the fiscal year for which it is | 16 | | to be
effective. | 17 | | (2) Beginning on January 1, 1989 and thereafter, the | 18 | | Department shall
deposit a percentage of the amounts | 19 | | collected pursuant to subsections (a)
and (b)(6), (7), and | 20 | | (8), (c) and (d) of Section 201
of this Act into a fund in | 21 | | the State treasury known as the Income Tax
Refund Fund. The | 22 | | Department shall deposit 18% of such amounts during the
| 23 | | period beginning January 1, 1989 and ending on June 30, | 24 | | 1989. Beginning
with State fiscal year 1990 and for each | 25 | | fiscal year thereafter, the
percentage deposited into the | 26 | | Income Tax Refund Fund during a fiscal year
shall be the |
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| 1 | | Annual Percentage. For fiscal years 1999, 2000, and 2001, | 2 | | the
Annual Percentage shall be 19%.
For fiscal year 2003, | 3 | | the Annual Percentage shall be 27%. For fiscal year
2004, | 4 | | the Annual Percentage shall be 32%.
Upon the effective date | 5 | | of Public Act 93-839 (July 30, 2004), the Annual Percentage | 6 | | shall be 24% for fiscal year 2005.
For fiscal year 2006, | 7 | | the Annual Percentage shall be 20%. For fiscal
year 2007, | 8 | | the Annual Percentage shall be 17.5%. For fiscal year 2008, | 9 | | the Annual Percentage shall be 15.5%. For fiscal year 2009, | 10 | | the Annual Percentage shall be 17.5%. For fiscal year 2010, | 11 | | the Annual Percentage shall be 17.5%. For fiscal year 2011, | 12 | | the Annual Percentage shall be 17.5%. For fiscal year 2012, | 13 | | the Annual Percentage shall be 17.5%. For fiscal year 2013, | 14 | | the Annual Percentage shall be 14%. For fiscal year 2014, | 15 | | the Annual Percentage shall be 13.4%. For fiscal year 2015, | 16 | | the Annual Percentage shall be 14%. For fiscal year 2018, | 17 | | the Annual Percentage shall be 17.5%. For fiscal year 2019, | 18 | | the Annual Percentage shall be 15.5%. For all other fiscal | 19 | | years, the Annual
Percentage shall be calculated
as a | 20 | | fraction, the numerator of which shall be the amount of | 21 | | refunds
approved for payment by the Department during the | 22 | | preceding fiscal year as
a result of overpayment of tax | 23 | | liability under subsections (a) and (b)(6),
(7), and (8), | 24 | | (c) and (d) of Section 201 of this Act plus the
amount of | 25 | | such refunds remaining approved but unpaid at the end of | 26 | | the
preceding fiscal year, and the denominator of
which |
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| 1 | | shall be the amounts which will be collected pursuant to | 2 | | subsections (a)
and (b)(6), (7), and (8), (c) and (d) of | 3 | | Section 201 of this Act during the
preceding fiscal year; | 4 | | except that in State fiscal year 2002, the Annual
| 5 | | Percentage shall in no event exceed 23%. The Director of | 6 | | Revenue shall
certify the Annual Percentage to the | 7 | | Comptroller on the last business day of
the fiscal year | 8 | | immediately preceding the fiscal year for which it is to be
| 9 | | effective. | 10 | | (3) The Comptroller shall order transferred and the | 11 | | Treasurer shall
transfer from the Tobacco Settlement | 12 | | Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | 13 | | in January, 2001, (ii) $35,000,000 in January, 2002, and
| 14 | | (iii) $35,000,000 in January, 2003. | 15 | | (d) Expenditures from Income Tax Refund Fund. | 16 | | (1) Beginning January 1, 1989, money in the Income Tax | 17 | | Refund Fund
shall be expended exclusively for the purpose | 18 | | of paying refunds resulting
from overpayment of tax | 19 | | liability under Section 201 of this Act
and for
making | 20 | | transfers pursuant to this subsection (d). | 21 | | (2) The Director shall order payment of refunds | 22 | | resulting from
overpayment of tax liability under Section | 23 | | 201 of this Act from the
Income Tax Refund Fund only to the | 24 | | extent that amounts collected pursuant
to Section 201 of | 25 | | this Act and transfers pursuant to this subsection (d)
and | 26 | | item (3) of subsection (c) have been deposited and retained |
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| 1 | | in the
Fund. | 2 | | (3) As soon as possible after the end of each fiscal | 3 | | year, the Director
shall
order transferred and the State | 4 | | Treasurer and State Comptroller shall
transfer from the | 5 | | Income Tax Refund Fund to the Personal Property Tax
| 6 | | Replacement Fund an amount, certified by the Director to | 7 | | the Comptroller,
equal to the excess of the amount | 8 | | collected pursuant to subsections (c) and
(d) of Section | 9 | | 201 of this Act deposited into the Income Tax Refund Fund
| 10 | | during the fiscal year over the amount of refunds resulting | 11 | | from
overpayment of tax liability under subsections (c) and | 12 | | (d) of Section 201
of this Act paid from the Income Tax | 13 | | Refund Fund during the fiscal year. | 14 | | (4) As soon as possible after the end of each fiscal | 15 | | year, the Director shall
order transferred and the State | 16 | | Treasurer and State Comptroller shall
transfer from the | 17 | | Personal Property Tax Replacement Fund to the Income Tax
| 18 | | Refund Fund an amount, certified by the Director to the | 19 | | Comptroller, equal
to the excess of the amount of refunds | 20 | | resulting from overpayment of tax
liability under | 21 | | subsections (c) and (d) of Section 201 of this Act paid
| 22 | | from the Income Tax Refund Fund during the fiscal year over | 23 | | the amount
collected pursuant to subsections (c) and (d) of | 24 | | Section 201 of this Act
deposited into the Income Tax | 25 | | Refund Fund during the fiscal year. | 26 | | (4.5) As soon as possible after the end of fiscal year |
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| 1 | | 1999 and of each
fiscal year
thereafter, the Director shall | 2 | | order transferred and the State Treasurer and
State | 3 | | Comptroller shall transfer from the Income Tax Refund Fund | 4 | | to the General
Revenue Fund any surplus remaining in the | 5 | | Income Tax Refund Fund as of the end
of such fiscal year; | 6 | | excluding for fiscal years 2000, 2001, and 2002
amounts | 7 | | attributable to transfers under item (3) of subsection (c) | 8 | | less refunds
resulting from the earned income tax credit. | 9 | | (5) This Act shall constitute an irrevocable and | 10 | | continuing
appropriation from the Income Tax Refund Fund | 11 | | for the purpose of paying
refunds upon the order of the | 12 | | Director in accordance with the provisions of
this Section. | 13 | | (e) Deposits into the Education Assistance Fund and the | 14 | | Income Tax
Surcharge Local Government Distributive Fund. On | 15 | | July 1, 1991, and thereafter, of the amounts collected pursuant | 16 | | to
subsections (a) and (b) of Section 201 of this Act, minus | 17 | | deposits into the
Income Tax Refund Fund, the Department shall | 18 | | deposit 7.3% into the
Education Assistance Fund in the State | 19 | | Treasury. Beginning July 1, 1991,
and continuing through | 20 | | January 31, 1993, of the amounts collected pursuant to
| 21 | | subsections (a) and (b) of Section 201 of the Illinois Income | 22 | | Tax Act, minus
deposits into the Income Tax Refund Fund, the | 23 | | Department shall deposit 3.0%
into the Income Tax Surcharge | 24 | | Local Government Distributive Fund in the State
Treasury. | 25 | | Beginning February 1, 1993 and continuing through June 30, | 26 | | 1993, of
the amounts collected pursuant to subsections (a) and |
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| 1 | | (b) of Section 201 of the
Illinois Income Tax Act, minus | 2 | | deposits into the Income Tax Refund Fund, the
Department shall | 3 | | deposit 4.4% into the Income Tax Surcharge Local Government
| 4 | | Distributive Fund in the State Treasury. Beginning July 1, | 5 | | 1993, and
continuing through June 30, 1994, of the amounts | 6 | | collected under subsections
(a) and (b) of Section 201 of this | 7 | | Act, minus deposits into the Income Tax
Refund Fund, the | 8 | | Department shall deposit 1.475% into the Income Tax Surcharge
| 9 | | Local Government Distributive Fund in the State Treasury. | 10 | | (f) Deposits into the Fund for the Advancement of | 11 | | Education. Beginning February 1, 2015, the Department shall | 12 | | deposit the following portions of the revenue realized from the | 13 | | tax imposed upon individuals, trusts, and estates by | 14 | | subsections (a) and (b) of Section 201 of this Act, minus | 15 | | deposits into the Income Tax Refund Fund, into the Fund for the | 16 | | Advancement of Education: | 17 | | (1) beginning February 1, 2015, and prior to February | 18 | | 1, 2025, 1/30; and | 19 | | (2) beginning February 1, 2025, 1/26. | 20 | | If the rate of tax imposed by subsection (a) and (b) of | 21 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 22 | | the Department shall not make the deposits required by this | 23 | | subsection (f) on or after the effective date of the reduction. | 24 | | (g) Deposits into the Commitment to Human Services Fund. | 25 | | Beginning February 1, 2015, the Department shall deposit the | 26 | | following portions of the revenue realized from the tax imposed |
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| 1 | | upon individuals, trusts, and estates by subsections (a) and | 2 | | (b) of Section 201 of this Act, minus deposits into the Income | 3 | | Tax Refund Fund, into the Commitment to Human Services Fund: | 4 | | (1) beginning February 1, 2015, and prior to February | 5 | | 1, 2025, 1/30; and | 6 | | (2) beginning February 1, 2025, 1/26. | 7 | | If the rate of tax imposed by subsection (a) and (b) of | 8 | | Section 201 is reduced pursuant to Section 201.5 of this Act, | 9 | | the Department shall not make the deposits required by this | 10 | | subsection (g) on or after the effective date of the reduction. | 11 | | (h) Deposits into the Tax Compliance and Administration | 12 | | Fund. Beginning on the first day of the first calendar month to | 13 | | occur on or after August 26, 2014 (the effective date of Public | 14 | | Act 98-1098), each month the Department shall pay into the Tax | 15 | | Compliance and Administration Fund, to be used, subject to | 16 | | appropriation, to fund additional auditors and compliance | 17 | | personnel at the Department, an amount equal to 1/12 of 5% of | 18 | | the cash receipts collected during the preceding fiscal year by | 19 | | the Audit Bureau of the Department from the tax imposed by | 20 | | subsections (a), (b), (c), and (d) of Section 201 of this Act, | 21 | | net of deposits into the Income Tax Refund Fund made from those | 22 | | cash receipts. | 23 | | (Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23, | 24 | | eff. 7-6-17; 100-587, eff. 6-4-18; 100-621, eff. 7-20-18; | 25 | | 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised 1-8-19.)
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| 1 | | Section 99. Effective date. This Act takes effect on | 2 | | January 1, 2021, but does not take effect at all unless Senate | 3 | | Joint Resolution Constitutional Amendment No. 1 of the 101st | 4 | | General Assembly is approved by the voters of the State prior | 5 | | to that date.".
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