State of Illinois
92nd General Assembly
Legislation

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92_HB4006

                                               LRB9214118SMdv

 1        AN ACT in relation to taxes.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Income Tax  Act  is  amended  by
 5    changing Section 2-203 as follows:

 6        (35 ILCS 5/203) (from Ch. 120, par. 2-203)
 7        Sec. 203.  Base income defined.
 8        (a)  Individuals.
 9             (1)  In general.  In the case of an individual, base
10        income  means  an amount equal to the taxpayer's adjusted
11        gross  income  for  the  taxable  year  as  modified   by
12        paragraph (2).
13             (2)  Modifications.    The   adjusted  gross  income
14        referred to in paragraph (1) shall be modified by  adding
15        thereto the sum of the following amounts:
16                  (A)  An  amount  equal  to  all amounts paid or
17             accrued to the taxpayer  as  interest  or  dividends
18             during  the taxable year to the extent excluded from
19             gross income in the computation  of  adjusted  gross
20             income,  except  stock dividends of qualified public
21             utilities  described  in  Section  305(e)   of   the
22             Internal Revenue Code;
23                  (B)  An  amount  equal  to  the  amount  of tax
24             imposed by this Act  to  the  extent  deducted  from
25             gross  income  in  the computation of adjusted gross
26             income for the taxable year;
27                  (C)  An amount equal  to  the  amount  received
28             during  the  taxable year as a recovery or refund of
29             real  property  taxes  paid  with  respect  to   the
30             taxpayer's principal residence under the Revenue Act
31             of  1939  and  for  which a deduction was previously
 
                            -2-                LRB9214118SMdv
 1             taken under subparagraph (L) of this  paragraph  (2)
 2             prior to July 1, 1991, the retrospective application
 3             date  of Article 4 of Public Act 87-17.  In the case
 4             of  multi-unit  or  multi-use  structures  and  farm
 5             dwellings, the taxes  on  the  taxpayer's  principal
 6             residence  shall  be that portion of the total taxes
 7             for the entire property  which  is  attributable  to
 8             such principal residence;
 9                  (D)  An  amount  equal  to  the  amount  of the
10             capital gain deduction allowable under the  Internal
11             Revenue  Code,  to  the  extent  deducted from gross
12             income in the computation of adjusted gross income;
13                  (D-5)  An amount, to the extent not included in
14             adjusted gross income, equal to the amount of  money
15             withdrawn by the taxpayer in the taxable year from a
16             medical care savings account and the interest earned
17             on  the  account in the taxable year of a withdrawal
18             pursuant to subsection (b)  of  Section  20  of  the
19             Medical  Care  Savings Account Act or subsection (b)
20             of Section 20 of the Medical  Care  Savings  Account
21             Act of 2000; and
22                  (D-10)  For taxable years ending after December
23             31,   1997,   an   amount   equal  to  any  eligible
24             remediation costs that the  individual  deducted  in
25             computing  adjusted  gross  income and for which the
26             individual claims a credit under subsection  (l)  of
27             Section 201;
28        and  by  deducting  from the total so obtained the sum of
29        the following amounts:
30                  (E)  For taxable years ending  before  December
31             31,  2001,  any  amount  included  in  such total in
32             respect  of  any  compensation  (including  but  not
33             limited to any compensation paid  or  accrued  to  a
34             serviceman  while  a  prisoner  of war or missing in
 
                            -3-                LRB9214118SMdv
 1             action) paid to a resident by  reason  of  being  on
 2             active duty in the Armed Forces of the United States
 3             and  in  respect of any compensation paid or accrued
 4             to a resident who as a governmental employee  was  a
 5             prisoner of war or missing in action, and in respect
 6             of  any  compensation  paid to a resident in 1971 or
 7             thereafter for annual training performed pursuant to
 8             Sections 502 and 503, Title 32, United  States  Code
 9             as  a  member  of  the  Illinois National Guard. For
10             taxable years ending on or after December 31,  2001,
11             any  amount included in such total in respect of any
12             compensation  (including  but  not  limited  to  any
13             compensation paid or accrued to a serviceman while a
14             prisoner of war or missing  in  action)  paid  to  a
15             resident   by  reason  of  being  a  member  of  any
16             component of the Armed Forces of the  United  States
17             and  in  respect of any compensation paid or accrued
18             to a resident who as a governmental employee  was  a
19             prisoner of war or missing in action, and in respect
20             of  any  compensation  paid to a resident in 2001 or
21             thereafter by  reason  of  being  a  member  of  the
22             Illinois  National  Guard.  The  provisions  of this
23             amendatory Act of  the  92nd  General  Assembly  are
24             exempt from the provisions of Section 250;
25                  (F)  An amount equal to all amounts included in
26             such  total  pursuant  to the provisions of Sections
27             402(a), 402(c), 403(a), 403(b), 406(a), 407(a),  and
28             408  of  the  Internal  Revenue Code, or included in
29             such total as distributions under the provisions  of
30             any  retirement  or disability plan for employees of
31             any  governmental  agency  or  unit,  or  retirement
32             payments to retired  partners,  which  payments  are
33             excluded   in   computing  net  earnings  from  self
34             employment by Section 1402 of the  Internal  Revenue
 
                            -4-                LRB9214118SMdv
 1             Code and regulations adopted pursuant thereto;
 2                  (G)  The valuation limitation amount;
 3                  (H)  An  amount  equal to the amount of any tax
 4             imposed by  this  Act  which  was  refunded  to  the
 5             taxpayer  and included in such total for the taxable
 6             year;
 7                  (I)  An amount equal to all amounts included in
 8             such total pursuant to the provisions of Section 111
 9             of the Internal Revenue Code as a recovery of  items
10             previously  deducted  from  adjusted gross income in
11             the computation of taxable income;
12                  (J)  An  amount  equal   to   those   dividends
13             included   in  such  total  which  were  paid  by  a
14             corporation which conducts business operations in an
15             Enterprise Zone or zones created under the  Illinois
16             Enterprise  Zone Act, and conducts substantially all
17             of its operations in an Enterprise Zone or zones;
18                  (K)  An  amount  equal   to   those   dividends
19             included   in   such  total  that  were  paid  by  a
20             corporation that conducts business operations  in  a
21             federally  designated Foreign Trade Zone or Sub-Zone
22             and  that  is  designated  a  High  Impact  Business
23             located  in  Illinois;   provided   that   dividends
24             eligible  for the deduction provided in subparagraph
25             (J) of paragraph (2) of this subsection shall not be
26             eligible  for  the  deduction  provided  under  this
27             subparagraph (K);
28                  (L)  For taxable years  ending  after  December
29             31,  1983,  an  amount  equal to all social security
30             benefits and railroad retirement  benefits  included
31             in  such  total pursuant to Sections 72(r) and 86 of
32             the Internal Revenue Code;
33                  (M)  With  the   exception   of   any   amounts
34             subtracted  under  subparagraph (N), an amount equal
 
                            -5-                LRB9214118SMdv
 1             to the sum of all amounts disallowed  as  deductions
 2             by  (i)  Sections  171(a)  (2),  and  265(2)  of the
 3             Internal Revenue Code of 1954, as now  or  hereafter
 4             amended,  and  all  amounts of expenses allocable to
 5             interest and  disallowed as  deductions  by  Section
 6             265(1)  of the Internal Revenue Code of 1954, as now
 7             or hereafter amended; and  (ii)  for  taxable  years
 8             ending   on  or  after  August  13,  1999,  Sections
 9             171(a)(2), 265, 280C,  and  832(b)(5)(B)(i)  of  the
10             Internal   Revenue  Code;  the  provisions  of  this
11             subparagraph  are  exempt  from  the  provisions  of
12             Section 250;
13                  (N)  An amount equal to all amounts included in
14             such total which are exempt from  taxation  by  this
15             State   either   by   reason   of  its  statutes  or
16             Constitution  or  by  reason  of  the  Constitution,
17             treaties or statutes of the United States;  provided
18             that,  in the case of any statute of this State that
19             exempts  income  derived   from   bonds   or   other
20             obligations from the tax imposed under this Act, the
21             amount  exempted  shall  be the interest net of bond
22             premium amortization;
23                  (O)  An amount equal to any  contribution  made
24             to  a  job  training project established pursuant to
25             the Tax Increment Allocation Redevelopment Act;
26                  (P)  An amount  equal  to  the  amount  of  the
27             deduction  used  to  compute  the federal income tax
28             credit for restoration of substantial  amounts  held
29             under  claim  of right for the taxable year pursuant
30             to Section 1341 of  the  Internal  Revenue  Code  of
31             1986;
32                  (Q)  An amount equal to any amounts included in
33             such   total,   received   by  the  taxpayer  as  an
34             acceleration in the payment of  life,  endowment  or
 
                            -6-                LRB9214118SMdv
 1             annuity  benefits  in advance of the time they would
 2             otherwise be payable as an indemnity for a  terminal
 3             illness;
 4                  (R)  An  amount  equal  to  the  amount  of any
 5             federal or State  bonus  paid  to  veterans  of  the
 6             Persian Gulf War;
 7                  (S)  An  amount,  to  the  extent  included  in
 8             adjusted  gross  income,  equal  to  the amount of a
 9             contribution made in the taxable year on  behalf  of
10             the  taxpayer  to  a  medical  care  savings account
11             established under the Medical Care  Savings  Account
12             Act  or the Medical Care Savings Account Act of 2000
13             to the extent the contribution is  accepted  by  the
14             account administrator as provided in that Act;
15                  (T)  An  amount,  to  the  extent  included  in
16             adjusted  gross  income,  equal  to  the  amount  of
17             interest  earned  in  the  taxable year on a medical
18             care savings account established under  the  Medical
19             Care Savings Account Act or the Medical Care Savings
20             Account Act of 2000 on behalf of the taxpayer, other
21             than  interest  added pursuant to item (D-5) of this
22             paragraph (2);
23                  (U)  For one taxable year beginning on or after
24             January 1, 1994, an amount equal to the total amount
25             of tax imposed and paid under  subsections  (a)  and
26             (b)  of  Section  201  of  this Act on grant amounts
27             received by the  taxpayer  under  the  Nursing  Home
28             Grant  Assistance  Act during the taxpayer's taxable
29             years 1992 and 1993;
30                  (V)  Beginning with  tax  years  ending  on  or
31             after  December  31,  1995 and ending with tax years
32             ending on or before December  31,  2004,  an  amount
33             equal  to  the  amount  paid  by a taxpayer who is a
34             self-employed taxpayer, a partner of a  partnership,
 
                            -7-                LRB9214118SMdv
 1             or  a  shareholder in a Subchapter S corporation for
 2             health insurance or  long-term  care  insurance  for
 3             that   taxpayer   or   that   taxpayer's  spouse  or
 4             dependents, to the extent that the amount  paid  for
 5             that  health  insurance  or long-term care insurance
 6             may be deducted under Section 213  of  the  Internal
 7             Revenue  Code  of 1986, has not been deducted on the
 8             federal income tax return of the taxpayer, and  does
 9             not  exceed  the taxable income attributable to that
10             taxpayer's  income,   self-employment   income,   or
11             Subchapter  S  corporation  income;  except  that no
12             deduction shall be allowed under this  item  (V)  if
13             the  taxpayer  is  eligible  to  participate  in any
14             health insurance or long-term care insurance plan of
15             an  employer  of  the  taxpayer  or  the  taxpayer's
16             spouse.  The amount  of  the  health  insurance  and
17             long-term  care insurance subtracted under this item
18             (V) shall be determined by multiplying total  health
19             insurance and long-term care insurance premiums paid
20             by  the  taxpayer times a number that represents the
21             fractional percentage of eligible  medical  expenses
22             under  Section  213  of the Internal Revenue Code of
23             1986 not actually deducted on the taxpayer's federal
24             income tax return;
25                  (W)  For taxable years beginning  on  or  after
26             January   1,  1998,  all  amounts  included  in  the
27             taxpayer's federal gross income in the taxable  year
28             from  amounts converted from a regular IRA to a Roth
29             IRA. This paragraph is exempt from the provisions of
30             Section 250;
31                  (X)  For taxable year 1999 and  thereafter,  an
32             amount equal to the amount of any (i) distributions,
33             to the extent includible in gross income for federal
34             income tax purposes, made to the taxpayer because of
 
                            -8-                LRB9214118SMdv
 1             his  or  her  status  as a victim of persecution for
 2             racial or religious reasons by Nazi Germany  or  any
 3             other  Axis  regime  or as an heir of the victim and
 4             (ii) items of income, to the  extent  includible  in
 5             gross   income  for  federal  income  tax  purposes,
 6             attributable to, derived from or in any way  related
 7             to  assets  stolen  from,  hidden from, or otherwise
 8             lost to  a  victim  of  persecution  for  racial  or
 9             religious  reasons by Nazi Germany or any other Axis
10             regime immediately prior to, during, and immediately
11             after World War II, including, but not  limited  to,
12             interest  on  the  proceeds  receivable as insurance
13             under policies issued to a victim of persecution for
14             racial or religious reasons by Nazi Germany  or  any
15             other  Axis  regime  by European insurance companies
16             immediately  prior  to  and  during  World  War  II;
17             provided, however,  this  subtraction  from  federal
18             adjusted  gross  income  does  not  apply  to assets
19             acquired with such assets or with the proceeds  from
20             the  sale  of  such  assets; provided, further, this
21             paragraph shall only apply to a taxpayer who was the
22             first recipient of such assets after their  recovery
23             and  who  is  a  victim of persecution for racial or
24             religious reasons by Nazi Germany or any other  Axis
25             regime  or  as an heir of the victim.  The amount of
26             and  the  eligibility  for  any  public  assistance,
27             benefit, or similar entitlement is not  affected  by
28             the   inclusion  of  items  (i)  and  (ii)  of  this
29             paragraph in gross income  for  federal  income  tax
30             purposes.   This   paragraph   is  exempt  from  the
31             provisions of Section 250; and
32                  (Y)  For taxable years beginning  on  or  after
33             January  1,  2002, moneys contributed in the taxable
34             year to a College Savings Pool account under Section
 
                            -9-                LRB9214118SMdv
 1             16.5 of the State Treasurer Act.  This  subparagraph
 2             (Y)  is  exempt  from the provisions of Section 250;
 3             and
 4                  (Z)  For  taxable  years  ending  on  or  after
 5             December 31, 2002, $1,000 per child or the amount of
 6             the taxpayer's adjusted gross income,  whichever  is
 7             less, for a married couple filing a joint return who
 8             have  a  minor child or children, if one parent is a
 9             full-time stay-at-home parent  responsible  for  the
10             care   of  the  children.  A  deduction  under  this
11             subparagraph in excess of  the  taxpayer's  adjusted
12             gross  income  may  not  be carried forward or back.
13             This subparagraph is exempt from the  provisions  of
14             Section 250.

15        (b)  Corporations.
16             (1)  In general.  In the case of a corporation, base
17        income  means  an  amount equal to the taxpayer's taxable
18        income for the taxable year as modified by paragraph (2).
19             (2)  Modifications.  The taxable income referred  to
20        in  paragraph (1) shall be modified by adding thereto the
21        sum of the following amounts:
22                  (A)  An amount equal to  all  amounts  paid  or
23             accrued   to   the  taxpayer  as  interest  and  all
24             distributions  received  from  regulated  investment
25             companies during the  taxable  year  to  the  extent
26             excluded  from  gross  income  in the computation of
27             taxable income;
28                  (B)  An amount  equal  to  the  amount  of  tax
29             imposed  by  this  Act  to  the extent deducted from
30             gross income in the computation  of  taxable  income
31             for the taxable year;
32                  (C)  In  the  case  of  a  regulated investment
33             company, an amount equal to the excess  of  (i)  the
34             net  long-term  capital  gain  for the taxable year,
 
                            -10-               LRB9214118SMdv
 1             over (ii) the amount of the capital  gain  dividends
 2             designated   as  such  in  accordance  with  Section
 3             852(b)(3)(C) of the Internal Revenue  Code  and  any
 4             amount  designated under Section 852(b)(3)(D) of the
 5             Internal Revenue Code, attributable to  the  taxable
 6             year (this amendatory Act of 1995 (Public Act 89-89)
 7             is  declarative  of  existing  law  and is not a new
 8             enactment);
 9                  (D)  The  amount  of  any  net  operating  loss
10             deduction taken in arriving at taxable income, other
11             than a net operating loss  carried  forward  from  a
12             taxable year ending prior to December 31, 1986;
13                  (E)  For taxable years in which a net operating
14             loss  carryback  or carryforward from a taxable year
15             ending prior to December 31, 1986 is an  element  of
16             taxable income under paragraph (1) of subsection (e)
17             or  subparagraph  (E) of paragraph (2) of subsection
18             (e), the  amount  by  which  addition  modifications
19             other  than  those provided by this subparagraph (E)
20             exceeded subtraction modifications in  such  earlier
21             taxable year, with the following limitations applied
22             in the order that they are listed:
23                       (i)  the addition modification relating to
24                  the  net operating loss carried back or forward
25                  to the  taxable  year  from  any  taxable  year
26                  ending  prior  to  December  31,  1986 shall be
27                  reduced by the amount of addition  modification
28                  under  this  subparagraph  (E) which related to
29                  that net operating loss  and  which  was  taken
30                  into  account in calculating the base income of
31                  an earlier taxable year, and
32                       (ii)  the addition  modification  relating
33                  to  the  net  operating  loss  carried  back or
34                  forward to the taxable year  from  any  taxable
 
                            -11-               LRB9214118SMdv
 1                  year  ending  prior  to December 31, 1986 shall
 2                  not exceed the  amount  of  such  carryback  or
 3                  carryforward;
 4                  For  taxable  years  in  which  there  is a net
 5             operating loss carryback or carryforward  from  more
 6             than one other taxable year ending prior to December
 7             31, 1986, the addition modification provided in this
 8             subparagraph  (E)  shall  be  the sum of the amounts
 9             computed   independently   under    the    preceding
10             provisions  of  this  subparagraph (E) for each such
11             taxable year; and
12                  (E-5)  For taxable years ending after  December
13             31,   1997,   an   amount   equal  to  any  eligible
14             remediation costs that the corporation  deducted  in
15             computing  adjusted  gross  income and for which the
16             corporation claims a credit under subsection (l)  of
17             Section 201;
18        and  by  deducting  from the total so obtained the sum of
19        the following amounts:
20                  (F)  An amount equal to the amount of  any  tax
21             imposed  by  this  Act  which  was  refunded  to the
22             taxpayer and included in such total for the  taxable
23             year;
24                  (G)  An  amount equal to any amount included in
25             such total under Section 78 of the Internal  Revenue
26             Code;
27                  (H)  In  the  case  of  a  regulated investment
28             company, an amount equal to  the  amount  of  exempt
29             interest  dividends as defined in subsection (b) (5)
30             of Section 852 of the Internal Revenue Code, paid to
31             shareholders for the taxable year;
32                  (I)  With  the   exception   of   any   amounts
33             subtracted  under  subparagraph (J), an amount equal
34             to the sum of all amounts disallowed  as  deductions
 
                            -12-               LRB9214118SMdv
 1             by  (i)  Sections  171(a)  (2),  and  265(a)(2)  and
 2             amounts  disallowed  as  interest expense by Section
 3             291(a)(3) of the Internal Revenue Code,  as  now  or
 4             hereafter  amended,  and  all  amounts  of  expenses
 5             allocable  to  interest and disallowed as deductions
 6             by Section 265(a)(1) of the Internal  Revenue  Code,
 7             as  now  or  hereafter amended; and (ii) for taxable
 8             years ending on or after August 13,  1999,  Sections
 9             171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
10             of the Internal Revenue Code; the provisions of this
11             subparagraph  are  exempt  from  the  provisions  of
12             Section 250;
13                  (J)  An amount equal to all amounts included in
14             such  total  which  are exempt from taxation by this
15             State  either  by  reason   of   its   statutes   or
16             Constitution  or  by  reason  of  the  Constitution,
17             treaties  or statutes of the United States; provided
18             that, in the case of any statute of this State  that
19             exempts   income   derived   from   bonds  or  other
20             obligations from the tax imposed under this Act, the
21             amount exempted shall be the interest  net  of  bond
22             premium amortization;
23                  (K)  An   amount   equal   to  those  dividends
24             included  in  such  total  which  were  paid  by   a
25             corporation which conducts business operations in an
26             Enterprise  Zone or zones created under the Illinois
27             Enterprise Zone Act and conducts  substantially  all
28             of its operations in an Enterprise Zone or zones;
29                  (L)  An   amount   equal   to  those  dividends
30             included  in  such  total  that  were  paid   by   a
31             corporation  that  conducts business operations in a
32             federally designated Foreign Trade Zone or  Sub-Zone
33             and  that  is  designated  a  High  Impact  Business
34             located   in   Illinois;   provided  that  dividends
 
                            -13-               LRB9214118SMdv
 1             eligible for the deduction provided in  subparagraph
 2             (K)  of  paragraph 2 of this subsection shall not be
 3             eligible  for  the  deduction  provided  under  this
 4             subparagraph (L);
 5                  (M)  For  any  taxpayer  that  is  a  financial
 6             organization within the meaning of Section 304(c) of
 7             this Act,  an  amount  included  in  such  total  as
 8             interest  income  from  a loan or loans made by such
 9             taxpayer to a borrower, to the extent  that  such  a
10             loan  is  secured  by property which is eligible for
11             the Enterprise Zone Investment Credit.  To determine
12             the portion of a loan or loans that  is  secured  by
13             property  eligible  for  a Section 201(f) investment
14             credit to the borrower, the entire principal  amount
15             of  the  loan  or loans between the taxpayer and the
16             borrower should be divided into  the  basis  of  the
17             Section  201(f)  investment  credit  property  which
18             secures  the  loan  or loans, using for this purpose
19             the original basis of such property on the date that
20             it was placed in service  in  the  Enterprise  Zone.
21             The  subtraction  modification available to taxpayer
22             in any year under  this  subsection  shall  be  that
23             portion  of  the total interest paid by the borrower
24             with  respect  to  such  loan  attributable  to  the
25             eligible property as calculated under  the  previous
26             sentence;
27                  (M-1)  For  any  taxpayer  that  is a financial
28             organization within the meaning of Section 304(c) of
29             this Act,  an  amount  included  in  such  total  as
30             interest  income  from  a loan or loans made by such
31             taxpayer to a borrower, to the extent  that  such  a
32             loan  is  secured  by property which is eligible for
33             the High  Impact  Business  Investment  Credit.   To
34             determine  the  portion  of  a loan or loans that is
 
                            -14-               LRB9214118SMdv
 1             secured by property eligible for  a  Section  201(h)
 2             investment   credit  to  the  borrower,  the  entire
 3             principal amount of the loan or  loans  between  the
 4             taxpayer and the borrower should be divided into the
 5             basis   of  the  Section  201(h)  investment  credit
 6             property which secures the loan or loans, using  for
 7             this  purpose the original basis of such property on
 8             the  date  that  it  was  placed  in  service  in  a
 9             federally designated Foreign Trade Zone or  Sub-Zone
10             located  in  Illinois.  No taxpayer that is eligible
11             for the deduction provided in  subparagraph  (M)  of
12             paragraph  (2)  of this subsection shall be eligible
13             for the deduction provided under  this  subparagraph
14             (M-1).   The  subtraction  modification available to
15             taxpayers in any year under this subsection shall be
16             that portion of  the  total  interest  paid  by  the
17             borrower  with  respect to such loan attributable to
18             the  eligible  property  as  calculated  under   the
19             previous sentence;
20                  (N)  Two times any contribution made during the
21             taxable  year  to  a designated zone organization to
22             the extent that the contribution (i) qualifies as  a
23             charitable  contribution  under  subsection  (c)  of
24             Section  170  of  the Internal Revenue Code and (ii)
25             must, by its terms, be used for a  project  approved
26             by  the Department of Commerce and Community Affairs
27             under Section 11 of  the  Illinois  Enterprise  Zone
28             Act;
29                  (O)  An  amount  equal  to: (i) 85% for taxable
30             years ending on or before December 31, 1992,  or,  a
31             percentage  equal  to the percentage allowable under
32             Section 243(a)(1) of the Internal  Revenue  Code  of
33             1986  for  taxable  years  ending after December 31,
34             1992, of the amount by which dividends  included  in
 
                            -15-               LRB9214118SMdv
 1             taxable  income and received from a corporation that
 2             is not created or organized under the  laws  of  the
 3             United  States or any state or political subdivision
 4             thereof, including, for taxable years ending  on  or
 5             after  December  31,  1988,  dividends  received  or
 6             deemed   received  or  paid  or  deemed  paid  under
 7             Sections 951 through 964  of  the  Internal  Revenue
 8             Code, exceed the amount of the modification provided
 9             under  subparagraph  (G)  of  paragraph  (2) of this
10             subsection (b) which is related to  such  dividends;
11             plus  (ii)  100%  of  the amount by which dividends,
12             included in taxable income and received,  including,
13             for  taxable  years  ending on or after December 31,
14             1988, dividends received or deemed received or  paid
15             or deemed paid under Sections 951 through 964 of the
16             Internal  Revenue  Code,  from  any such corporation
17             specified in clause  (i)  that  would  but  for  the
18             provisions  of  Section 1504 (b) (3) of the Internal
19             Revenue  Code  be  treated  as  a  member   of   the
20             affiliated   group   which   includes  the  dividend
21             recipient, exceed the  amount  of  the  modification
22             provided  under subparagraph (G) of paragraph (2) of
23             this  subsection  (b)  which  is  related  to   such
24             dividends;
25                  (P)  An  amount  equal to any contribution made
26             to a job training project  established  pursuant  to
27             the Tax Increment Allocation Redevelopment Act;
28                  (Q)  An  amount  equal  to  the  amount  of the
29             deduction used to compute  the  federal  income  tax
30             credit  for  restoration of substantial amounts held
31             under claim of right for the taxable  year  pursuant
32             to  Section  1341  of  the  Internal Revenue Code of
33             1986;
34                  (R)  In the case of  an  attorney-in-fact  with
 
                            -16-               LRB9214118SMdv
 1             respect  to  whom  an  interinsurer  or a reciprocal
 2             insurer has made the election under Section  835  of
 3             the  Internal Revenue Code, 26 U.S.C. 835, an amount
 4             equal to the excess, if any, of the amounts paid  or
 5             incurred  by that interinsurer or reciprocal insurer
 6             in the taxable year to the attorney-in-fact over the
 7             deduction allowed to that interinsurer or reciprocal
 8             insurer with respect to the  attorney-in-fact  under
 9             Section  835(b) of the Internal Revenue Code for the
10             taxable year; and
11                  (S)  For  taxable  years  ending  on  or  after
12             December 31, 1997, in the case  of  a  Subchapter  S
13             corporation,  an  amount  equal  to  all  amounts of
14             income allocable to a  shareholder  subject  to  the
15             Personal Property Tax Replacement Income Tax imposed
16             by  subsections  (c)  and (d) of Section 201 of this
17             Act, including amounts  allocable  to  organizations
18             exempt  from federal income tax by reason of Section
19             501(a)  of  the   Internal   Revenue   Code.    This
20             subparagraph  (S)  is  exempt from the provisions of
21             Section 250.
22             (3)  Special rule.  For purposes  of  paragraph  (2)
23        (A),  "gross  income"  in  the  case  of a life insurance
24        company, for tax years ending on and after  December  31,
25        1994,  shall  mean  the  gross  investment income for the
26        taxable year.

27        (c)  Trusts and estates.
28             (1)  In general.  In the case of a trust or  estate,
29        base  income  means  an  amount  equal  to the taxpayer's
30        taxable income  for  the  taxable  year  as  modified  by
31        paragraph (2).
32             (2)  Modifications.   Subject  to  the provisions of
33        paragraph  (3),  the  taxable  income  referred   to   in
34        paragraph (1) shall be modified by adding thereto the sum
 
                            -17-               LRB9214118SMdv
 1        of the following amounts:
 2                  (A)  An  amount  equal  to  all amounts paid or
 3             accrued to the taxpayer  as  interest  or  dividends
 4             during  the taxable year to the extent excluded from
 5             gross income in the computation of taxable income;
 6                  (B)  In the case of (i) an estate, $600; (ii) a
 7             trust which,  under  its  governing  instrument,  is
 8             required  to distribute all of its income currently,
 9             $300; and (iii) any other trust, $100, but  in  each
10             such  case,  only  to  the  extent  such  amount was
11             deducted in the computation of taxable income;
12                  (C)  An amount  equal  to  the  amount  of  tax
13             imposed  by  this  Act  to  the extent deducted from
14             gross income in the computation  of  taxable  income
15             for the taxable year;
16                  (D)  The  amount  of  any  net  operating  loss
17             deduction taken in arriving at taxable income, other
18             than  a  net  operating  loss carried forward from a
19             taxable year ending prior to December 31, 1986;
20                  (E)  For taxable years in which a net operating
21             loss carryback or carryforward from a  taxable  year
22             ending  prior  to December 31, 1986 is an element of
23             taxable income under paragraph (1) of subsection (e)
24             or subparagraph (E) of paragraph (2)  of  subsection
25             (e),  the  amount  by  which  addition modifications
26             other than those provided by this  subparagraph  (E)
27             exceeded  subtraction  modifications in such taxable
28             year, with the following limitations applied in  the
29             order that they are listed:
30                       (i)  the addition modification relating to
31                  the  net operating loss carried back or forward
32                  to the  taxable  year  from  any  taxable  year
33                  ending  prior  to  December  31,  1986 shall be
34                  reduced by the amount of addition  modification
 
                            -18-               LRB9214118SMdv
 1                  under  this  subparagraph  (E) which related to
 2                  that net operating loss  and  which  was  taken
 3                  into  account in calculating the base income of
 4                  an earlier taxable year, and
 5                       (ii)  the addition  modification  relating
 6                  to  the  net  operating  loss  carried  back or
 7                  forward to the taxable year  from  any  taxable
 8                  year  ending  prior  to December 31, 1986 shall
 9                  not exceed the  amount  of  such  carryback  or
10                  carryforward;
11                  For  taxable  years  in  which  there  is a net
12             operating loss carryback or carryforward  from  more
13             than one other taxable year ending prior to December
14             31, 1986, the addition modification provided in this
15             subparagraph  (E)  shall  be  the sum of the amounts
16             computed   independently   under    the    preceding
17             provisions  of  this  subparagraph (E) for each such
18             taxable year;
19                  (F)  For  taxable  years  ending  on  or  after
20             January 1, 1989, an amount equal to the tax deducted
21             pursuant to Section 164 of the Internal Revenue Code
22             if the trust or estate is claiming the same tax  for
23             purposes  of  the  Illinois foreign tax credit under
24             Section 601 of this Act;
25                  (G)  An amount  equal  to  the  amount  of  the
26             capital  gain deduction allowable under the Internal
27             Revenue Code, to  the  extent  deducted  from  gross
28             income in the computation of taxable income; and
29                  (G-5)  For  taxable years ending after December
30             31,  1997,  an  amount   equal   to   any   eligible
31             remediation  costs that the trust or estate deducted
32             in computing adjusted gross income and for which the
33             trust or estate claims a credit under subsection (l)
34             of Section 201;
 
                            -19-               LRB9214118SMdv
 1        and by deducting from the total so obtained  the  sum  of
 2        the following amounts:
 3                  (H)  An amount equal to all amounts included in
 4             such  total  pursuant  to the provisions of Sections
 5             402(a), 402(c), 403(a), 403(b), 406(a),  407(a)  and
 6             408 of the Internal Revenue Code or included in such
 7             total  as  distributions under the provisions of any
 8             retirement or disability plan for employees  of  any
 9             governmental  agency or unit, or retirement payments
10             to retired partners, which payments are excluded  in
11             computing  net  earnings  from  self  employment  by
12             Section  1402  of  the  Internal  Revenue  Code  and
13             regulations adopted pursuant thereto;
14                  (I)  The valuation limitation amount;
15                  (J)  An  amount  equal to the amount of any tax
16             imposed by  this  Act  which  was  refunded  to  the
17             taxpayer  and included in such total for the taxable
18             year;
19                  (K)  An amount equal to all amounts included in
20             taxable income as  modified  by  subparagraphs  (A),
21             (B),  (C),  (D),  (E),  (F) and (G) which are exempt
22             from taxation by this State either by reason of  its
23             statutes   or  Constitution  or  by  reason  of  the
24             Constitution, treaties or  statutes  of  the  United
25             States; provided that, in the case of any statute of
26             this State that exempts income derived from bonds or
27             other  obligations  from  the tax imposed under this
28             Act, the amount exempted shall be the  interest  net
29             of bond premium amortization;
30                  (L)  With   the   exception   of   any  amounts
31             subtracted under subparagraph (K), an  amount  equal
32             to  the  sum of all amounts disallowed as deductions
33             by (i) Sections 171(a)  (2)  and  265(a)(2)  of  the
34             Internal  Revenue Code, as now or hereafter amended,
 
                            -20-               LRB9214118SMdv
 1             and all amounts of expenses  allocable  to  interest
 2             and  disallowed  as  deductions by Section 265(1) of
 3             the  Internal  Revenue  Code  of  1954,  as  now  or
 4             hereafter amended; and (ii) for taxable years ending
 5             on or after August  13,  1999,  Sections  171(a)(2),
 6             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
 7             Revenue  Code;  the  provisions of this subparagraph
 8             are exempt from the provisions of Section 250;
 9                  (M)  An  amount  equal   to   those   dividends
10             included   in  such  total  which  were  paid  by  a
11             corporation which conducts business operations in an
12             Enterprise Zone or zones created under the  Illinois
13             Enterprise  Zone  Act and conducts substantially all
14             of its operations in an Enterprise Zone or Zones;
15                  (N)  An amount equal to any  contribution  made
16             to  a  job  training project established pursuant to
17             the Tax Increment Allocation Redevelopment Act;
18                  (O)  An  amount  equal   to   those   dividends
19             included   in   such  total  that  were  paid  by  a
20             corporation that conducts business operations  in  a
21             federally  designated Foreign Trade Zone or Sub-Zone
22             and  that  is  designated  a  High  Impact  Business
23             located  in  Illinois;   provided   that   dividends
24             eligible  for the deduction provided in subparagraph
25             (M) of paragraph (2) of this subsection shall not be
26             eligible  for  the  deduction  provided  under  this
27             subparagraph (O);
28                  (P)  An amount  equal  to  the  amount  of  the
29             deduction  used  to  compute  the federal income tax
30             credit for restoration of substantial  amounts  held
31             under  claim  of right for the taxable year pursuant
32             to Section 1341 of  the  Internal  Revenue  Code  of
33             1986; and
34                  (Q)  For  taxable  year 1999 and thereafter, an
 
                            -21-               LRB9214118SMdv
 1             amount equal to the amount of any (i) distributions,
 2             to the extent includible in gross income for federal
 3             income tax purposes, made to the taxpayer because of
 4             his or her status as a  victim  of  persecution  for
 5             racial  or  religious reasons by Nazi Germany or any
 6             other Axis regime or as an heir of  the  victim  and
 7             (ii)  items  of  income, to the extent includible in
 8             gross  income  for  federal  income  tax   purposes,
 9             attributable  to, derived from or in any way related
10             to assets stolen from,  hidden  from,  or  otherwise
11             lost  to  a  victim  of  persecution  for  racial or
12             religious reasons by Nazi Germany or any other  Axis
13             regime immediately prior to, during, and immediately
14             after  World  War II, including, but not limited to,
15             interest on the  proceeds  receivable  as  insurance
16             under policies issued to a victim of persecution for
17             racial  or  religious reasons by Nazi Germany or any
18             other Axis regime by  European  insurance  companies
19             immediately  prior  to  and  during  World  War  II;
20             provided,  however,  this  subtraction  from federal
21             adjusted gross  income  does  not  apply  to  assets
22             acquired  with such assets or with the proceeds from
23             the sale of such  assets;  provided,  further,  this
24             paragraph shall only apply to a taxpayer who was the
25             first  recipient of such assets after their recovery
26             and who is a victim of  persecution  for  racial  or
27             religious  reasons by Nazi Germany or any other Axis
28             regime or as an heir of the victim.  The  amount  of
29             and  the  eligibility  for  any  public  assistance,
30             benefit,  or  similar entitlement is not affected by
31             the  inclusion  of  items  (i)  and  (ii)  of   this
32             paragraph  in  gross  income  for federal income tax
33             purposes.  This  paragraph  is   exempt   from   the
34             provisions of Section 250.
 
                            -22-               LRB9214118SMdv
 1             (3)  Limitation.   The  amount  of  any modification
 2        otherwise required under  this  subsection  shall,  under
 3        regulations  prescribed by the Department, be adjusted by
 4        any amounts included therein which  were  properly  paid,
 5        credited,  or  required to be distributed, or permanently
 6        set aside for charitable purposes pursuant   to  Internal
 7        Revenue Code Section 642(c) during the taxable year.

 8        (d)  Partnerships.
 9             (1)  In  general. In the case of a partnership, base
10        income means an amount equal to  the  taxpayer's  taxable
11        income for the taxable year as modified by paragraph (2).
12             (2)  Modifications.  The  taxable income referred to
13        in paragraph (1) shall be modified by adding thereto  the
14        sum of the following amounts:
15                  (A)  An  amount  equal  to  all amounts paid or
16             accrued to the taxpayer  as  interest  or  dividends
17             during  the taxable year to the extent excluded from
18             gross income in the computation of taxable income;
19                  (B)  An amount  equal  to  the  amount  of  tax
20             imposed  by  this  Act  to  the extent deducted from
21             gross income for the taxable year;
22                  (C)  The amount of deductions  allowed  to  the
23             partnership  pursuant  to  Section  707  (c)  of the
24             Internal Revenue Code  in  calculating  its  taxable
25             income; and
26                  (D)  An  amount  equal  to  the  amount  of the
27             capital gain deduction allowable under the  Internal
28             Revenue  Code,  to  the  extent  deducted from gross
29             income in the computation of taxable income;
30        and by deducting from the total so obtained the following
31        amounts:
32                  (E)  The valuation limitation amount;
33                  (F)  An amount equal to the amount of  any  tax
34             imposed  by  this  Act  which  was  refunded  to the
 
                            -23-               LRB9214118SMdv
 1             taxpayer and included in such total for the  taxable
 2             year;
 3                  (G)  An amount equal to all amounts included in
 4             taxable  income  as  modified  by subparagraphs (A),
 5             (B), (C) and (D) which are exempt from  taxation  by
 6             this  State  either  by  reason  of  its statutes or
 7             Constitution  or  by  reason  of  the  Constitution,
 8             treaties or statutes of the United States;  provided
 9             that,  in the case of any statute of this State that
10             exempts  income  derived   from   bonds   or   other
11             obligations from the tax imposed under this Act, the
12             amount  exempted  shall  be the interest net of bond
13             premium amortization;
14                  (H)  Any  income  of  the   partnership   which
15             constitutes  personal  service  income as defined in
16             Section 1348 (b) (1) of the  Internal  Revenue  Code
17             (as  in  effect  December  31, 1981) or a reasonable
18             allowance  for  compensation  paid  or  accrued  for
19             services rendered by partners  to  the  partnership,
20             whichever is greater;
21                  (I)  An  amount  equal to all amounts of income
22             distributable to an entity subject to  the  Personal
23             Property  Tax  Replacement  Income  Tax  imposed  by
24             subsections  (c)  and (d) of Section 201 of this Act
25             including  amounts  distributable  to  organizations
26             exempt from federal income tax by reason of  Section
27             501(a) of the Internal Revenue Code;
28                  (J)  With   the   exception   of   any  amounts
29             subtracted under subparagraph (G), an  amount  equal
30             to  the  sum of all amounts disallowed as deductions
31             by (i)  Sections  171(a)  (2),  and  265(2)  of  the
32             Internal  Revenue  Code of 1954, as now or hereafter
33             amended, and all amounts of  expenses  allocable  to
34             interest  and  disallowed  as  deductions by Section
 
                            -24-               LRB9214118SMdv
 1             265(1) of the  Internal  Revenue  Code,  as  now  or
 2             hereafter amended; and (ii) for taxable years ending
 3             on  or  after  August  13, 1999, Sections 171(a)(2),
 4             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
 5             Revenue Code; the provisions  of  this  subparagraph
 6             are exempt from the provisions of Section 250;
 7                  (K)  An   amount   equal   to  those  dividends
 8             included  in  such  total  which  were  paid  by   a
 9             corporation which conducts business operations in an
10             Enterprise  Zone or zones created under the Illinois
11             Enterprise Zone Act, enacted  by  the  82nd  General
12             Assembly, and which does not conduct such operations
13             other than in an Enterprise Zone or Zones;
14                  (L)  An  amount  equal to any contribution made
15             to a job training project  established  pursuant  to
16             the   Real   Property   Tax   Increment   Allocation
17             Redevelopment Act;
18                  (M)  An   amount   equal   to  those  dividends
19             included  in  such  total  that  were  paid   by   a
20             corporation  that  conducts business operations in a
21             federally designated Foreign Trade Zone or  Sub-Zone
22             and  that  is  designated  a  High  Impact  Business
23             located   in   Illinois;   provided  that  dividends
24             eligible for the deduction provided in  subparagraph
25             (K) of paragraph (2) of this subsection shall not be
26             eligible  for  the  deduction  provided  under  this
27             subparagraph (M); and
28                  (N)  An  amount  equal  to  the  amount  of the
29             deduction used to compute  the  federal  income  tax
30             credit  for  restoration of substantial amounts held
31             under claim of right for the taxable  year  pursuant
32             to  Section  1341  of  the  Internal Revenue Code of
33             1986.

34        (e)  Gross income; adjusted gross income; taxable income.
 
                            -25-               LRB9214118SMdv
 1             (1)  In  general.   Subject  to  the  provisions  of
 2        paragraph (2) and subsection (b)  (3),  for  purposes  of
 3        this  Section  and  Section  803(e),  a  taxpayer's gross
 4        income, adjusted gross income, or taxable income for  the
 5        taxable  year  shall  mean  the  amount  of gross income,
 6        adjusted  gross  income  or   taxable   income   properly
 7        reportable  for  federal  income  tax  purposes  for  the
 8        taxable year under the provisions of the Internal Revenue
 9        Code.  Taxable income may be less than zero. However, for
10        taxable years ending on or after December 31,  1986,  net
11        operating  loss  carryforwards  from taxable years ending
12        prior to December 31, 1986, may not  exceed  the  sum  of
13        federal  taxable  income  for the taxable year before net
14        operating loss deduction, plus  the  excess  of  addition
15        modifications  over  subtraction  modifications  for  the
16        taxable year.  For taxable years ending prior to December
17        31, 1986, taxable income may never be an amount in excess
18        of the net operating loss for the taxable year as defined
19        in subsections (c) and (d) of Section 172 of the Internal
20        Revenue  Code,  provided  that  when  taxable income of a
21        corporation (other  than  a  Subchapter  S  corporation),
22        trust,   or   estate  is  less  than  zero  and  addition
23        modifications, other than those provided by  subparagraph
24        (E)  of  paragraph (2) of subsection (b) for corporations
25        or subparagraph (E) of paragraph (2)  of  subsection  (c)
26        for trusts and estates, exceed subtraction modifications,
27        an   addition  modification  must  be  made  under  those
28        subparagraphs for any other taxable  year  to  which  the
29        taxable  income  less  than  zero (net operating loss) is
30        applied under Section 172 of the Internal Revenue Code or
31        under  subparagraph  (E)  of  paragraph   (2)   of   this
32        subsection (e) applied in conjunction with Section 172 of
33        the Internal Revenue Code.
34             (2)  Special rule.  For purposes of paragraph (1) of
 
                            -26-               LRB9214118SMdv
 1        this  subsection,  the taxable income properly reportable
 2        for federal income tax purposes shall mean:
 3                  (A)  Certain life insurance companies.  In  the
 4             case  of a life insurance company subject to the tax
 5             imposed by Section 801 of the Internal Revenue Code,
 6             life insurance  company  taxable  income,  plus  the
 7             amount  of  distribution  from pre-1984 policyholder
 8             surplus accounts as calculated under Section 815a of
 9             the Internal Revenue Code;
10                  (B)  Certain other insurance companies.  In the
11             case of mutual insurance companies  subject  to  the
12             tax  imposed  by Section 831 of the Internal Revenue
13             Code, insurance company taxable income;
14                  (C)  Regulated investment  companies.   In  the
15             case  of  a  regulated investment company subject to
16             the tax imposed  by  Section  852  of  the  Internal
17             Revenue Code, investment company taxable income;
18                  (D)  Real  estate  investment  trusts.   In the
19             case of a real estate investment  trust  subject  to
20             the  tax  imposed  by  Section  857  of the Internal
21             Revenue Code, real estate investment  trust  taxable
22             income;
23                  (E)  Consolidated corporations.  In the case of
24             a  corporation  which  is  a member of an affiliated
25             group of corporations filing a  consolidated  income
26             tax  return  for the taxable year for federal income
27             tax purposes, taxable income determined as  if  such
28             corporation  had filed a separate return for federal
29             income tax purposes for the taxable  year  and  each
30             preceding  taxable year for which it was a member of
31             an  affiliated   group.   For   purposes   of   this
32             subparagraph, the taxpayer's separate taxable income
33             shall  be  determined as if the election provided by
34             Section 243(b) (2) of the Internal Revenue Code  had
 
                            -27-               LRB9214118SMdv
 1             been in effect for all such years;
 2                  (F)  Cooperatives.     In   the   case   of   a
 3             cooperative corporation or association, the  taxable
 4             income of such organization determined in accordance
 5             with  the provisions of Section 1381 through 1388 of
 6             the Internal Revenue Code;
 7                  (G)  Subchapter S corporations.   In  the  case
 8             of:  (i)  a Subchapter S corporation for which there
 9             is in effect an election for the taxable year  under
10             Section  1362  of  the  Internal  Revenue  Code, the
11             taxable income of  such  corporation  determined  in
12             accordance  with  Section  1363(b)  of  the Internal
13             Revenue Code, except that taxable income shall  take
14             into  account  those  items  which  are  required by
15             Section 1363(b)(1) of the Internal Revenue  Code  to
16             be  separately  stated;  and  (ii)  a  Subchapter  S
17             corporation  for  which there is in effect a federal
18             election  to  opt  out  of  the  provisions  of  the
19             Subchapter S Revision Act of 1982 and  have  applied
20             instead  the  prior federal Subchapter S rules as in
21             effect on July 1, 1982, the taxable income  of  such
22             corporation   determined   in  accordance  with  the
23             federal Subchapter S rules as in effect on  July  1,
24             1982; and
25                  (H)  Partnerships.     In   the   case   of   a
26             partnership, taxable income determined in accordance
27             with Section  703  of  the  Internal  Revenue  Code,
28             except  that  taxable income shall take into account
29             those items which are required by Section  703(a)(1)
30             to  be  separately  stated  but which would be taken
31             into account by an  individual  in  calculating  his
32             taxable income.

33        (f)  Valuation limitation amount.
34             (1)  In  general.   The  valuation limitation amount
 
                            -28-               LRB9214118SMdv
 1        referred to in subsections (a) (2) (G), (c) (2)  (I)  and
 2        (d)(2) (E) is an amount equal to:
 3                  (A)  The   sum   of   the  pre-August  1,  1969
 4             appreciation amounts (to the  extent  consisting  of
 5             gain reportable under the provisions of Section 1245
 6             or  1250  of  the  Internal  Revenue  Code)  for all
 7             property in respect of which such gain was  reported
 8             for the taxable year; plus
 9                  (B)  The   lesser   of   (i)  the  sum  of  the
10             pre-August 1,  1969  appreciation  amounts  (to  the
11             extent  consisting of capital gain) for all property
12             in respect of  which  such  gain  was  reported  for
13             federal income tax purposes for the taxable year, or
14             (ii)  the  net  capital  gain  for the taxable year,
15             reduced in either case by any amount  of  such  gain
16             included  in  the amount determined under subsection
17             (a) (2) (F) or (c) (2) (H).
18             (2)  Pre-August 1, 1969 appreciation amount.
19                  (A)  If  the  fair  market  value  of  property
20             referred   to   in   paragraph   (1)   was   readily
21             ascertainable on August 1, 1969, the  pre-August  1,
22             1969  appreciation  amount  for such property is the
23             lesser of (i) the excess of such fair  market  value
24             over the taxpayer's basis (for determining gain) for
25             such  property  on  that  date (determined under the
26             Internal Revenue Code as in effect on that date), or
27             (ii) the total  gain  realized  and  reportable  for
28             federal  income tax purposes in respect of the sale,
29             exchange or other disposition of such property.
30                  (B)  If  the  fair  market  value  of  property
31             referred  to  in  paragraph  (1)  was  not   readily
32             ascertainable  on  August 1, 1969, the pre-August 1,
33             1969 appreciation amount for such property  is  that
34             amount  which bears the same ratio to the total gain
 
                            -29-               LRB9214118SMdv
 1             reported in respect  of  the  property  for  federal
 2             income  tax  purposes  for  the taxable year, as the
 3             number of full calendar months in that part  of  the
 4             taxpayer's  holding  period  for the property ending
 5             July 31, 1969 bears to the number of  full  calendar
 6             months  in  the taxpayer's entire holding period for
 7             the property.
 8                  (C)  The  Department   shall   prescribe   such
 9             regulations  as  may  be  necessary to carry out the
10             purposes of this paragraph.

11        (g)  Double  deductions.   Unless  specifically  provided
12    otherwise, nothing in this Section shall permit the same item
13    to be deducted more than once.

14        (h)  Legislative intention.  Except as expressly provided
15    by  this  Section  there  shall  be   no   modifications   or
16    limitations on the amounts of income, gain, loss or deduction
17    taken  into  account  in  determining  gross income, adjusted
18    gross  income  or  taxable  income  for  federal  income  tax
19    purposes for the taxable year, or in the amount of such items
20    entering into the computation of base income and  net  income
21    under  this  Act for such taxable year, whether in respect of
22    property values as of August 1, 1969 or otherwise.
23    (Source: P.A. 91-192, eff.  7-20-99;  91-205,  eff.  7-20-99;
24    91-357,  eff.  7-29-99;  91-541,  eff.  8-13-99; 91-676, eff.
25    12-23-99; 91-845, eff. 6-22-00; 91-913, eff.  1-1-01;  92-16,
26    eff.  6-28-01;  92-244,  eff.  8-3-01;  92-439, eff. 8-17-01;
27    revised 9-21-01.)

28        Section 99.  Effective date.  This Act takes effect  upon
29    becoming law.

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