Full Text of HB5554 101st General Assembly
HB5554 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB5554 Introduced , by Rep. Delia C. Ramirez SYNOPSIS AS INTRODUCED: |
| New Act | | 35 ILCS 5/232 new | | 215 ILCS 5/409 | from Ch. 73, par. 1021 | 215 ILCS 5/444 | from Ch. 73, par. 1056 |
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Creates the Build Illinois Homes Tax Credit Act. Provides that the Illinois Housing Development Authority and the City of Chicago Department of Housing may award credits for certain qualified low-income housing projects. Provides that the credits may be taken against any or all of the following: (i) the taxes imposed by the Illinois Income Tax Act; or (ii) any retaliatory or privilege tax imposed by the Illinois Insurance Code. Amends the Illinois Income Tax Act and the Illinois Insurance Code to make conforming changes. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the Build | 5 | | Illinois Homes Tax Credit Act. | 6 | | Section 5. Definitions. As used in this Act, unless the | 7 | | context clearly requires otherwise: | 8 | | "Allocation" means an award of tax credits to the owner of | 9 | | a qualified development in any allocation round, to be claimed | 10 | | ratably annually over the credit period. | 11 | | "Allocation round" means all allocations by the Authority | 12 | | of credits under this Act to qualified developments in any | 13 | | calendar year. | 14 | | "Authority" means: | 15 | | (1) the Illinois Housing Development Authority; or | 16 | | (2) the City of Chicago Department of Housing. | 17 | | "Credit" means the credit allowed pursuant to Section 2 of | 18 | | this Act. | 19 | | "Credit period" means the period of 10 taxable years | 20 | | beginning with the taxable year in which a qualified | 21 | | development is placed in service. If a qualified development | 22 | | consists of more than one building, the development is deemed | 23 | | to be placed in service in the taxable year during which the |
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| 1 | | last building of the qualified development is placed in | 2 | | service. | 3 | | "Department" means the Illinois Department of Revenue. | 4 | | "Federal tax credit" means the federal low-income housing | 5 | | tax credit provided by Section 42 of the federal Internal | 6 | | Revenue Code, including federal low-income housing tax credits | 7 | | issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4). | 8 | | "Owner certification" means the certification issued by | 9 | | the owner of a qualified development or its designee pursuant | 10 | | to subsection (d) of Section 10 of this Act. | 11 | | "Qualified allocation plan" means the qualified allocation | 12 | | plan adopted by the Authority pursuant to Section 42(m) of the | 13 | | federal Internal Revenue Code of 1986. | 14 | | "Qualified basis" means the qualified basis of the | 15 | | qualified development as determined pursuant to Section 42 of | 16 | | the federal Internal Revenue Code of 1986. | 17 | | "Qualified development" means a qualified low-income | 18 | | housing project, as that term is defined in Section 42 of the | 19 | | federal Internal Revenue Code of 1986, that is located in the | 20 | | State and is determined to be eligible for the federal tax | 21 | | credit set forth in Section 42 of the Internal Revenue Code, | 22 | | whether or not a federal tax credit is allocated with respect | 23 | | to that development. | 24 | | "Qualified taxpayer" means an individual, person, firm, | 25 | | corporation, or other entity that owns an interest, direct or | 26 | | indirect, in a qualified development and is subject to any or |
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| 1 | | all of the following: (i) the taxes imposed by the Illinois | 2 | | Income Tax Act; or (ii) any retaliatory or privilege tax | 3 | | imposed by the Illinois Insurance Code. | 4 | | "State 8609 equivalent" means a statement issued by the | 5 | | Authority with respect to each building within a qualified | 6 | | development following construction or rehabilitation of a | 7 | | qualified development certifying that each such building | 8 | | within that qualified development qualifies for the credit and | 9 | | specifying: | 10 | | (1) the calendar year in which the last building of the | 11 | | qualified development was placed in service; | 12 | | (2) the amount of the credit allowed for each year of | 13 | | the credit period; and | 14 | | (3) the maximum qualified basis of the qualified | 15 | | development taken into account in determining such annual | 16 | | credit amount. | 17 | | The State 8609 equivalent shall be issued by the Authority | 18 | | simultaneously with IRS Form 8609, if the qualified development | 19 | | was also allocated federal tax credits. | 20 | | Section 10. Credit for low-income housing developments. | 21 | | (a) The Authority shall include the credit in its annual | 22 | | qualified allocation plan each year until expiration of this | 23 | | Act. Each allocation round shall be simultaneous with | 24 | | allocations of federal tax credits. | 25 | | (b) For taxable years beginning on or after January 1, |
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| 1 | | 2021, the Authority may allocate a credit to the owner of a | 2 | | qualified development in any allocation round in an amount | 3 | | determined by the Authority, subject to the following | 4 | | guidelines: | 5 | | (1) the Authority finding that the credit is necessary | 6 | | for the financial feasibility of the development; | 7 | | (2) the aggregate sum of credits allocated to qualified | 8 | | developments in any allocation round shall not exceed | 9 | | $35,000,000, plus the amount of unallocated credits, if | 10 | | any, from the preceding allocation round, plus the amount | 11 | | of any credit recaptured or otherwise returned to the | 12 | | Authority since the previous allocation round; | 13 | | (3) of the $35,000,000 annual allocation: (i) 75.5% of | 14 | | the available credits in each allocation round shall be | 15 | | allocated by the Illinois Housing Development Authority, | 16 | | plus any credits the Illinois Housing Development | 17 | | Authority did not allocate from the previous allocation | 18 | | round, plus the amount of any credits recaptured or | 19 | | otherwise returned to the Illinois Housing Development | 20 | | Authority since the previous allocation round; and (ii) | 21 | | 24.5% of the available credits in each allocation round | 22 | | shall be allocated by the City of Chicago Department of | 23 | | Housing, plus any credits the City of Chicago Department of | 24 | | Housing did not allocate from the previous allocation | 25 | | round, plus the amount of any credits recaptured or | 26 | | otherwise returned to the City of Chicago Department of |
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| 1 | | Housing since the previous allocation round; | 2 | | (4) unless otherwise provided in this Act, or unless | 3 | | the context clearly requires otherwise, the Authority must | 4 | | determine eligibility for credits and allocate credits in | 5 | | accordance with the standards and requirements set forth in | 6 | | Section 42 of the federal Internal Revenue Code of 1986; | 7 | | (c) For tax years during the credit period, any qualified | 8 | | taxpayer is allowed a credit as provided in this Act against | 9 | | any or all of the following: (i) the taxes imposed by | 10 | | subsections (a), (b), and (c) of Section 201 of the Illinois | 11 | | Income Tax Act; or (ii) any retaliatory or privilege tax | 12 | | imposed under the Illinois Insurance Code. | 13 | | (d) If an owner of a qualified development receiving an | 14 | | allocation of a credit is a partnership, limited liability | 15 | | company, S corporation, or similar pass-through entity, the | 16 | | owner may allocate the credit available during a year in the | 17 | | credit period among its partners, shareholders, members, or | 18 | | other constituent taxpayers in any manner agreed to by such | 19 | | persons and, in the case of multiple tiers of pass-through | 20 | | entities, the credit may be so allocated through any number of | 21 | | pass-through entities in any manner agreed by the owners of | 22 | | those pass-through entities, whether or not such persons are | 23 | | allocated or allowed any portion of any federal tax credit with | 24 | | respect to the qualified development. To be eligible to receive | 25 | | an allocation of credits, the partners, shareholders, members, | 26 | | or other constituent taxpayers must be a member of the entity |
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| 1 | | at the end of the taxable year in which the allocation occurs. | 2 | | The owner must submit an owner certification to the Department | 3 | | detailing the amount of credit allocated to each constituent | 4 | | taxpayer, or the owner must notify the Department that it has | 5 | | assigned the duty of the owner certification to one such | 6 | | constituent taxpayer who must provide such owner certification | 7 | | to the Department. Each constituent taxpayer is allowed to | 8 | | claim such amount of credit subject to any restrictions set | 9 | | forth in this Section. | 10 | | (e) Any partner, shareholder, member or other constituent | 11 | | taxpayer that receives a direct or indirect allocation of | 12 | | credits from the owner of a qualified development may transfer | 13 | | the credit to any third party subject to taxes imposed by the | 14 | | Illinois Income Tax Act or the Illinois Insurance Code. The | 15 | | transferring partner, shareholder, member, or other | 16 | | constituent taxpayer shall be liable for any recapture pursuant | 17 | | to Section 15, and the transferee shall not be liable for | 18 | | recapture pursuant to Section 15. The owner of the qualified | 19 | | development may not transfer the credit. | 20 | | (f) No credit may be allocated pursuant to this Act unless | 21 | | the qualified development is the subject of a recorded | 22 | | restrictive covenant requiring the development to be | 23 | | maintained and operated as a qualified development; this | 24 | | requirement for a recorded restrictive covenant may be | 25 | | satisfied by the agreement for an extended low-income housing | 26 | | commitment required for the federal tax credits as defined in |
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| 1 | | Section 42(h)(6)(B) of the federal Internal Revenue Code of | 2 | | 1986. | 3 | | (g) If, during a taxable year, there is a determination | 4 | | that no recorded restrictive covenant meeting the requirements | 5 | | of subsection (f) was in effect as of the beginning of that | 6 | | year, such determination shall not apply to any period before | 7 | | that year and subsection (f) shall be applied without regard to | 8 | | that determination if the failure is corrected within one year | 9 | | from the date of the determination. | 10 | | (h) The credit amount may be taken against the taxes | 11 | | imposed by the Illinois Income Tax Act for each taxable year of | 12 | | the credit period. The credit amount may be taken against the | 13 | | taxes imposed by the Illinois Insurance Code for each reporting | 14 | | period in the credit period. Any credit amount that exceeds the | 15 | | tax due for a taxable year may be carried forward as a tax | 16 | | credit against payments due for up to 5 taxable years following | 17 | | the tax year to which the credit relates and must be applied | 18 | | first to the earliest reporting periods possible. Credits that | 19 | | are not claimed may not be refunded to the taxpayer. | 20 | | Section 15. Recapture. If, under Section 42 of the Internal | 21 | | Revenue Code of 1986, a portion of any federal tax credit | 22 | | claimed with respect to a qualified development is required to | 23 | | be recaptured during the first 10 years after a project is | 24 | | placed in service, then the Department shall recapture a | 25 | | portion of the related credits under this Act from the taxpayer |
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| 1 | | who claimed the credit or, in the case of a transfer, from the | 2 | | transferee. The amount of credit subject to recapture shall be | 3 | | proportionately equal to the amount of the qualified | 4 | | development's federal tax credits which are subject to | 5 | | recapture. If that recapture of any credit is required in any | 6 | | tax year, the return submitted for that tax year by the owner | 7 | | of the qualified development to the Department must include the | 8 | | proportion of credit required to be recaptured, the identity of | 9 | | the taxpayer subject to recapture, and the amount of credit | 10 | | previously allocated to that taxpayer. The taxpayer subject to | 11 | | recapture shall increase such taxpayer's tax by the amount of | 12 | | any credit wrongfully claimed by itself or its transferee. | 13 | | Those adjustments shall be made in the year the reduction in | 14 | | qualified basis is identified. | 15 | | Section 20. Filing requirements. An owner of a qualified | 16 | | development that has received an allocation and each qualified | 17 | | taxpayer to which that owner has allocated a portion of the | 18 | | credit, if any, must file with their State tax returns a copy | 19 | | of the State 8609 equivalent issued by the Authority for that | 20 | | development as well as a copy of the owner certification. | 21 | | Section 25. Rules. The Illinois Housing Development | 22 | | Authority and the Department, in consultation with each other, | 23 | | shall adopt such rules as are necessary to carry out their | 24 | | respective responsibilities under this Act. |
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| 1 | | Section 30. Compliance monitoring. The Authority, in | 2 | | consultation with the Department, shall monitor and oversee | 3 | | compliance with the provisions of this Act and shall report | 4 | | specific occurrences of noncompliance to the Department. | 5 | | Section 35. Report to the General Assembly. | 6 | | (a) The Illinois Housing Development Authority must, by | 7 | | December 31 of each allocation year, provide a written report | 8 | | to the General Assembly and must publish that report on its | 9 | | website. | 10 | | (b) The report shall: | 11 | | (1) set forth the number of qualified developments that | 12 | | have been allocated tax credits under this Act during the | 13 | | allocation year and the total number of units supported by | 14 | | each development; | 15 | | (2) describe each qualified development that has been | 16 | | allocated such credits including, without limitation, the | 17 | | geographic location of the development, the household type | 18 | | and any specific demographic information available about | 19 | | residents intended to be served by the development, the | 20 | | income levels intended to be served by the development, and | 21 | | the rents or set-asides authorized for each development; | 22 | | (3) provide housing market and demographic information | 23 | | that demonstrates how the qualified developments supported | 24 | | by the tax credits are addressing the need for affordable |
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| 1 | | housing within the communities they are intended to serve | 2 | | as well as information about any remaining disparities in | 3 | | the affordability of housing within those communities; | 4 | | (4) provide information on the percentage of | 5 | | developments allocated credits that received incentive | 6 | | scoring points in the qualified allocation plan as a result | 7 | | of the general contractor, property manager, architect, or | 8 | | sponsor being certified under the Business Enterprise | 9 | | Program for Minorities, Females, and Persons with a | 10 | | Disability.
| 11 | | Section 40. Exempt from automatic sunset. The credit under | 12 | | this Act is exempt from the provisions of Section 250 of the | 13 | | Illinois Income Tax Act. | 14 | | Section 90. The Illinois Income Tax Act is amended by | 15 | | adding Section 232 as follows: | 16 | | (35 ILCS 5/232 new) | 17 | | Sec. 232. Build Illinois Homes Tax Credit Act. For taxable | 18 | | years beginning on or after January 1, 2021, taxpayers are | 19 | | entitled to credits against the taxes imposed by subsections | 20 | | (a), (b), and (c) of Section 201 as provided in the Build | 21 | | Illinois Homes Tax Credit Act. | 22 | | Section 95. The Illinois Insurance Code is amended by |
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| 1 | | changing Sections 409 and 444 as follows:
| 2 | | (215 ILCS 5/409) (from Ch. 73, par. 1021)
| 3 | | Sec. 409. Annual privilege tax payable by
companies. | 4 | | (1) As of January 1, 1999 for all health maintenance | 5 | | organization premiums
written; as of July 1, 1998 for all | 6 | | premiums written as accident and health
business, voluntary | 7 | | health service plan business, dental service plan business,
or | 8 | | limited health service organization business; and as of January | 9 | | 1, 1998
for all other types of insurance premiums written, | 10 | | every company doing any form
of insurance business in this
| 11 | | State, including, but not limited to, every risk retention | 12 | | group, and excluding
all fraternal benefit societies, all farm | 13 | | mutual companies, all religious
charitable risk pooling | 14 | | trusts, and excluding all statutory residual market and
special | 15 | | purpose entities in which companies are statutorily required to
| 16 | | participate, whether incorporated or otherwise, shall pay, for | 17 | | the privilege of
doing business in this State, to the Director | 18 | | for the State treasury a State
tax equal to 0.5% of the net | 19 | | taxable premium written, together with any amounts
due under | 20 | | Section 444 of this Code, except that the tax to be paid on any
| 21 | | premium derived from any accident and health insurance or on | 22 | | any insurance
business written by any company operating as a | 23 | | health maintenance organization,
voluntary health service | 24 | | plan, dental service plan, or limited health service
| 25 | | organization shall be equal to 0.4% of such net taxable premium |
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| 1 | | written,
together with any amounts due under Section 444. Upon | 2 | | the failure of any
company to pay any such tax due, the | 3 | | Director may, by order, revoke or
suspend the company's | 4 | | certificate of authority after giving 20 days written
notice to | 5 | | the company, or commence proceedings for the suspension of | 6 | | business
in this State under the procedures set forth by | 7 | | Section 401.1 of this Code.
The gross taxable premium written | 8 | | shall be the gross amount of premiums
received on direct | 9 | | business during the calendar year on contracts covering
risks | 10 | | in this State, except premiums on annuities, premiums on which | 11 | | State
premium taxes are prohibited by federal law, premiums | 12 | | paid by the State for
health care coverage for Medicaid | 13 | | eligible insureds as described in Section
5-2 of the Illinois | 14 | | Public Aid Code, premiums paid for health care services
| 15 | | included as an element of tuition charges at any university or | 16 | | college owned
and operated by the State of Illinois, premiums | 17 | | on group insurance contracts
under the State Employees Group | 18 | | Insurance Act of 1971, and except premiums for
deferred | 19 | | compensation plans for employees of the State, units of local
| 20 | | government, or school districts. The net taxable premium shall | 21 | | be the gross
taxable premium written reduced only by the | 22 | | following:
| 23 | | (a) the amount of premiums returned thereon which shall | 24 | | be limited to
premiums returned during the same preceding | 25 | | calendar year and shall not include
the return of cash | 26 | | surrender values or death benefits on life policies
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| 1 | | including annuities;
| 2 | | (b) dividends on such direct business that have been | 3 | | paid in cash, applied
in reduction of premiums or left to | 4 | | accumulate to the credit of policyholders
or annuitants. In | 5 | | the case of life insurance, no deduction shall be made for
| 6 | | the payment of deferred dividends paid in cash to | 7 | | policyholders on maturing
policies; dividends left to | 8 | | accumulate to the credit of policyholders or
annuitants | 9 | | shall be included as gross taxable premium written when | 10 | | such
dividend
accumulations are applied to purchase | 11 | | paid-up insurance or to shorten the
endowment or premium | 12 | | paying period.
| 13 | | (2) The annual privilege tax payment due from a company | 14 | | under subsection (4)
of
this Section may be reduced by: (a) the | 15 | | excess amount, if any, by which the
aggregate income taxes paid | 16 | | by the company, on a cash basis, for the preceding
calendar | 17 | | year under Sections 601 and 803 of the Illinois
Income Tax Act | 18 | | exceed 1.5% of the company's net taxable premium written for
| 19 | | that prior calendar year, as determined under subsection (1) of | 20 | | this Section;
and (b) the amount of any fire department taxes | 21 | | paid by the company during the
preceding calendar year under | 22 | | Section 11-10-1 of the Illinois Municipal Code.
Any deductible | 23 | | amount or offset allowed under items (a) and (b) of this
| 24 | | subsection for any calendar year will not be allowed as a | 25 | | deduction or offset
against the company's privilege tax | 26 | | liability for any other taxing period or
calendar year.
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| 1 | | (3) If a company survives or was formed by a merger, | 2 | | consolidation,
reorganization, or reincorporation, the | 3 | | premiums received and amounts returned
or paid by all companies | 4 | | party to the merger, consolidation, reorganization,
or | 5 | | reincorporation shall, for purposes of determining the amount | 6 | | of the tax
imposed by this Section, be regarded as received, | 7 | | returned, or paid by the
surviving
or new company.
| 8 | | (4)(a) All companies subject to the provisions of this | 9 | | Section shall make an
annual return for the preceding calendar | 10 | | year on or before March 15 setting
forth such information on | 11 | | such forms as the Director may reasonably require.
Payments of | 12 | | quarterly installments of the taxpayer's total estimated tax | 13 | | for
the current calendar year shall be due on or before April | 14 | | 15, June 15,
September 15, and December 15 of such year, except | 15 | | that all companies
transacting insurance in this State whose | 16 | | annual tax for the immediately
preceding calendar year was less | 17 | | than $5,000 shall make only an annual return.
Failure of a | 18 | | company to make the annual payment, or to make the quarterly
| 19 | | payments, if required, of at least 25% of either (i) the total | 20 | | tax paid during
the
previous calendar year or (ii) 80% of the | 21 | | actual tax for the current calendar
year shall subject it to | 22 | | the penalty provisions set forth in Section 412 of
this Code.
| 23 | | (b) Notwithstanding the foregoing provisions, no annual | 24 | | return shall be
required or made on March 15, 1998, under this | 25 | | subsection. For the calendar
year 1998:
| 26 | | (i) each health maintenance organization shall have no |
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| 1 | | estimated tax
installments;
| 2 | | (ii) all companies subject to the tax as of July 1, | 3 | | 1998 as
set forth in subsection (1) shall have estimated | 4 | | tax installments due on
September
15 and December 15 of | 5 | | 1998 which
installments shall each amount to no less than | 6 | | one-half of 80% of the actual
tax on its net taxable | 7 | | premium written during the period July 1, 1998, through
| 8 | | December 31, 1998; and
| 9 | | (iii) all other companies shall have estimated tax | 10 | | installments due on
June
15, September 15, and December 15 | 11 | | of 1998 which installments shall each
amount to no less | 12 | | than one-third of 80% of the actual tax on its net taxable
| 13 | | premium written during the calendar year 1998.
| 14 | | In the year 1999 and thereafter all companies shall make | 15 | | annual and
quarterly installments of their estimated tax as | 16 | | provided by paragraph (a) of
this subsection.
| 17 | | (5) In addition to the authority specifically granted under | 18 | | Article XXV of
this Code, the Director shall have such | 19 | | authority to adopt rules and establish
forms as may be | 20 | | reasonably necessary
for purposes of determining the | 21 | | allocation of Illinois corporate income taxes
paid under | 22 | | subsections (a) through (d) of Section 201 of the Illinois | 23 | | Income
Tax Act amongst members of a business group that files | 24 | | an Illinois corporate
income tax return on a unitary basis, for | 25 | | purposes of regulating the amendment
of tax returns, for | 26 | | purposes of defining terms, and for purposes of enforcing
the |
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| 1 | | provisions of
Article XXV of
this Code. The Director shall also | 2 | | have authority to defer, waive, or abate
the tax
imposed by | 3 | | this Section if in his opinion the company's solvency and | 4 | | ability to
meet its insured obligations would be immediately | 5 | | threatened by payment of the
tax due.
| 6 | | (6) This Section is subject to the provisions of Section 10 | 7 | | of the New Markets Development Program Act. | 8 | | (7) This Section is subject to the provisions of the Build | 9 | | Illinois Homes Tax Credit Act. | 10 | | (Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)
| 11 | | (215 ILCS 5/444) (from Ch. 73, par. 1056)
| 12 | | Sec. 444. Retaliation.
| 13 | | (1) Whenever the existing or future laws of any other state | 14 | | or country
shall
require of companies incorporated or organized | 15 | | under the laws of this State
as a condition precedent to their | 16 | | doing business in such other state or
country, compliance with | 17 | | laws, rules, regulations, and prohibitions more
onerous or | 18 | | burdensome than the rules and regulations imposed by this State
| 19 | | on foreign or alien companies, or shall require any deposit of | 20 | | securities
or other obligations in such state or country, for | 21 | | the protection of
policyholders or otherwise or require of such | 22 | | companies or agents thereof
or brokers the payment of | 23 | | penalties, fees, charges, or taxes greater than
the penalties, | 24 | | fees, charges, or taxes required in the aggregate for like
| 25 | | purposes by this Code or any other law of this State, of |
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| 1 | | foreign or alien
companies, agents thereof or brokers, then | 2 | | such laws, rules, regulations,
and prohibitions of said other | 3 | | state or country shall apply to companies
incorporated or | 4 | | organized under the laws of such state or country doing
| 5 | | business in this State, and all such companies, agents thereof, | 6 | | or brokers
doing business in this State, shall be required to | 7 | | make deposits, pay
penalties, fees, charges, and taxes, in | 8 | | amounts equal to those required in
the aggregate for like | 9 | | purposes of Illinois companies doing business in
such state or | 10 | | country, agents thereof or brokers. Whenever any other state
or | 11 | | country shall refuse to permit any insurance company | 12 | | incorporated or
organized under the laws of this State to | 13 | | transact business according to
its usual plan in such other | 14 | | state or country, the director may, if
satisfied that such | 15 | | company of this State is solvent, properly managed, and
can | 16 | | operate legally under the laws of such other state or country,
| 17 | | forthwith suspend or cancel the license of every insurance | 18 | | company doing
business in this State which is incorporated or | 19 | | organized under the laws of
such other state or country to the | 20 | | extent that it insures in this State
against any of the risks | 21 | | or hazards which are sought to be insured against
by the | 22 | | company of this State in such other state or country.
| 23 | | (2) The provisions of this Section shall not apply to | 24 | | residual market
or special purpose assessments or guaranty fund | 25 | | or guaranty association
assessments, both under the laws of | 26 | | this State and under the laws of any other
state
or country, |
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| 1 | | and any tax offset or credit for any such assessment shall, for
| 2 | | purposes of this Section, be treated as a tax paid both under | 3 | | the laws of this
State and under the laws of any other state or | 4 | | country.
| 5 | | (3) The terms "penalties", "fees", "charges", and "taxes" | 6 | | in subsection
(1) of this
Section
shall include: the penalties, | 7 | | fees, charges, and taxes collected on a cash basis under State
| 8 | | law
and
referenced within Article XXV exclusive of any items | 9 | | referenced by
subsection
(2) of this Section, but including any | 10 | | tax offset allowed under Section 531.13
of this Code; the | 11 | | aggregate Illinois corporate income taxes paid under Sections | 12 | | 601 and 803
of the Illinois Income Tax Act during the calendar | 13 | | year for which the retaliatory tax calculation is being made, | 14 | | less the recapture of any Illinois corporate income tax cash | 15 | | refunds to the extent that the amount of tax refunded was | 16 | | reported as part of the Illinois basis in the calculation of | 17 | | the retaliatory tax for a prior tax year, provided that such | 18 | | recaptured refund shall not exceed the amount necessary for | 19 | | equivalence of the Illinois basis with the state of | 20 | | incorporation basis in such tax year, and after
any tax offset | 21 | | allowed under Section 531.13 of this Code;
income or personal | 22 | | property taxes imposed by other states or countries;
penalties, | 23 | | fees, charges, and taxes of other states
or countries imposed | 24 | | for purposes like those of the penalties, fees, charges,
and | 25 | | taxes
specified in Article XXV of this Code exclusive of any | 26 | | item referenced in
subsection (2) of this Section; and any |
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| 1 | | penalties, fees, charges, and taxes
required as
a
franchise, | 2 | | privilege, or licensing tax for
conducting the business of | 3 | | insurance whether calculated as a percentage of
income, gross | 4 | | receipts, premium, or otherwise.
| 5 | | (4) Nothing contained in this Section or Section 409 or | 6 | | Section 444.1 is
intended to authorize or expand any power of | 7 | | local governmental units or
municipalities to impose taxes, | 8 | | fees, or charges.
| 9 | | (5) This Section is subject to the provisions of Section 10 | 10 | | of the New Markets Development Program Act. | 11 | | (6) This Section is subject to the provisions of the Build | 12 | | Illinois Homes Tax Credit Act. | 13 | | (Source: P.A. 98-1169, eff. 1-9-15.)
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.
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