Illinois General Assembly - Full Text of SB2430
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB2430  102nd General Assembly

SB2430sam001 102ND GENERAL ASSEMBLY

Sen. Bill Cunningham

Filed: 4/8/2021

 

 


 

 


 
10200SB2430sam001LRB102 10351 HLH 24280 a

1
AMENDMENT TO SENATE BILL 2430

2    AMENDMENT NO. ______. Amend Senate Bill 2430 by replacing
3everything from line 13 on page 13 through line 3 on page 16
4with the following:
5        "(11.5) Investment partnership.
6            (A) For tax years ending before January 1, 2021,
7        the The term "investment partnership" means any entity
8        that is treated as a partnership for federal income
9        tax purposes that meets the following requirements:
10                (i) no less than 90% of the partnership's cost
11            of its total assets consists of qualifying
12            investment securities, deposits at banks or other
13            financial institutions, and office space and
14            equipment reasonably necessary to carry on its
15            activities as an investment partnership;
16                (ii) no less than 90% of its gross income
17            consists of interest, dividends, and gains from
18            the sale or exchange of qualifying investment

 

 

10200SB2430sam001- 2 -LRB102 10351 HLH 24280 a

1            securities; and
2                (iii) the partnership is not a dealer in
3            qualifying investment securities.
4            (A-5) For tax years ending on or after January 1,
5        2021, the term "investment partnership" means any
6        entity that is treated as a partnership for federal
7        income tax purposes that meets the following
8        requirements:
9                (i) no less than 90% of the partnership's cost
10            of its total assets consists of qualifying
11            investment securities, deposits at banks or other
12            financial institutions, and office space and
13            equipment reasonably necessary to carry on its
14            activities as an investment partnership; and
15                (ii) no less than 90% of its gross income
16            consists of interest, dividends, gains from the
17            sale or exchange of qualifying investment
18            securities, and the distributive share of
19            partnership income from lower-tier partnership
20            interests meeting the definition of qualifying
21            investment security under subparagraph (B)(xiii);
22            gross income does not include income from
23            partnerships that are operating at a federal
24            taxable loss.
25            (B) For purposes of this paragraph (11.5), the
26        term "qualifying investment securities" (other than,

 

 

10200SB2430sam001- 3 -LRB102 10351 HLH 24280 a

1        for tax years ending on or after January 1, 2021,
2        securities with respect to which the taxpayer is
3        required to apply the rules of Internal Revenue Code
4        Section 475(a)) includes all of the following:
5                (i) common stock, including preferred or debt
6            securities convertible into common stock, and
7            preferred stock;
8                (ii) bonds, debentures, and other debt
9            securities;
10                (iii) foreign and domestic currency deposits
11            secured by federal, state, or local governmental
12            agencies;
13                (iv) mortgage or asset-backed securities
14            secured by federal, state, or local governmental
15            agencies;
16                (v) repurchase agreements and loan
17            participations;
18                (vi) foreign currency exchange contracts and
19            forward and futures contracts on foreign
20            currencies;
21                (vii) stock and bond index securities and
22            futures contracts and other similar financial
23            securities and futures contracts on those
24            securities;
25                (viii) options for the purchase or sale of any
26            of the securities, currencies, contracts, or

 

 

10200SB2430sam001- 4 -LRB102 10351 HLH 24280 a

1            financial instruments described in items (i) to
2            (vii), inclusive;
3                (ix) regulated futures contracts;
4                (x) commodities (not described in Section
5            1221(a)(1) of the Internal Revenue Code) or
6            futures, forwards, and options with respect to
7            such commodities, provided, however, that any item
8            of a physical commodity to which title is actually
9            acquired in the partnership's capacity as a dealer
10            in such commodity shall not be a qualifying
11            investment security;
12                (xi) derivatives; and
13                (xii) a partnership interest in another
14            partnership that is an investment partnership; and
15            .
16                (xiii) for tax years ending on or after
17            January 1, 2021, a partnership interest which, in
18            the hands of the partnership, qualifies as a
19            security within the meaning of Section 2(a)(1) of
20            the federal Securities Act of 1933.".