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(35 ILCS 5/405)
Sec. 405.
Carryovers in certain acquisitions.
(a) In the case of the acquisition of assets of a corporation by another
corporation described in Section 381(a) of the Internal Revenue Code, the
acquiring corporation shall succeed to and take into account, as of the close
of the day of distribution or transfer, all Article 2 credits and net losses
under Section 207 of the corporation from which the assets were
acquired.
(b) In the case of the acquisition of assets of a partnership by another
partnership in a transaction in which the acquiring partnership is considered
to be a continuation of the partnership from which the assets were acquired
under the provisions of Section 708 of the Internal Revenue Code and any
regulations promulgated under that Section, the acquiring partnership shall
succeed to
and take into account, as of the close of the day of distribution or transfer,
all Article 2 credits and net losses under Section 207 of the partnership from
which the assets were acquired.
(b-5) No limitation under Section 382 of the Internal Revenue Code or the
separate return limitation year regulations promulgated under Section 1502 of
the Internal Revenue Code shall apply to the carryover of any Article 2 credit
or net loss allowable under Section 207.
(c) The provisions of this amendatory Act of the 91st General Assembly shall
apply to all acquisitions occurring in taxable years ending on or after
December 31, 1986; provided that if a taxpayer's Illinois income tax liability
for any taxable year, as assessed under Section 903 prior to January 1, 1999,
was computed without taking into account all of the Article 2 credits and net
losses under Section 207 as allowed by this Section:
(1) no refund shall be payable to the taxpayer for |
| that taxable year as the result of allowing any portion of the Article 2 credits or net losses under Section 207 that were not taken into account in computing the tax assessed prior to January 1, 1999;
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(2) any deficiency which has not been paid may be
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| reduced (but not below zero) by the allowance of some or all of the Article 2 credits or net losses under Section 207 that were not taken into account in computing the tax assessed prior to January 1, 1999; and
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(3) in the case of any Article 2 credit or net loss
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| under Section 207 that, pursuant to this subsection (c), could not be taken into account either in computing the tax assessed prior to January 1, 1999 for a taxable year or in reducing a deficiency for that taxable year under paragraph (2) of subsection (c), the allowance of such credit or loss in any other taxable year shall not be denied on the grounds that such credit or loss should properly have been claimed in that taxable year under subsection (a) or (b).
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(Source: P.A. 91-541, eff. 8-13-99; 91-913, eff. 1-1-01.)
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