State of Illinois
92nd General Assembly
Legislation

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92_HB5744

 
                                               LRB9215312SMpk

 1        AN ACT concerning 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 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-                LRB9215312SMpk
 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-                LRB9215312SMpk
 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-                LRB9215312SMpk
 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-                LRB9215312SMpk
 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-                LRB9215312SMpk
 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-                LRB9215312SMpk
 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-                LRB9215312SMpk
 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-                LRB9215312SMpk
 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  beginning on or after
 5             March 1, 2000 (the first day the State Treasurer was
 6             authorized to accept any  moneys  into  the  Colloge
 7             Savings   Pool),  an  amount  equal  to  any  amount
 8             included in adjusted gross income  representing  (i)
 9             any amount held in, (ii) earnings on any amount held
10             in,  or  (iii)  any  disbursements  from  a  College
11             Savings  Pool account established under Section 16.5
12             of the State Treasurer Act,  so  long  as  disbursed
13             amounts   are   used   for   qualified  expenses  as
14             determined under Section 16.5 of the State Treasurer
15             Act. This subparagraph is exempt from the provisions
16             of Section 250.

17        (b)  Corporations.
18             (1)  In general.  In the case of a corporation, base
19        income means an amount equal to  the  taxpayer's  taxable
20        income for the taxable year as modified by paragraph (2).
21             (2)  Modifications.   The taxable income referred to
22        in paragraph (1) shall be modified by adding thereto  the
23        sum of the following amounts:
24                  (A)  An  amount  equal  to  all amounts paid or
25             accrued  to  the  taxpayer  as  interest   and   all
26             distributions  received  from  regulated  investment
27             companies  during  the  taxable  year  to the extent
28             excluded from gross income  in  the  computation  of
29             taxable income;
30                  (B)  An  amount  equal  to  the  amount  of tax
31             imposed by this Act  to  the  extent  deducted  from
32             gross  income  in  the computation of taxable income
33             for the taxable year;
34                  (C)  In the  case  of  a  regulated  investment
 
                            -10-               LRB9215312SMpk
 1             company,  an  amount  equal to the excess of (i) the
 2             net long-term capital gain  for  the  taxable  year,
 3             over  (ii)  the amount of the capital gain dividends
 4             designated  as  such  in  accordance  with   Section
 5             852(b)(3)(C)  of  the  Internal Revenue Code and any
 6             amount designated under Section 852(b)(3)(D) of  the
 7             Internal  Revenue  Code, attributable to the taxable
 8             year (this amendatory Act of 1995 (Public Act 89-89)
 9             is declarative of existing law  and  is  not  a  new
10             enactment);
11                  (D)  The  amount  of  any  net  operating  loss
12             deduction taken in arriving at taxable income, other
13             than  a  net  operating  loss carried forward from a
14             taxable year ending prior to December 31, 1986;
15                  (E)  For taxable years in which a net operating
16             loss carryback or carryforward from a  taxable  year
17             ending  prior  to December 31, 1986 is an element of
18             taxable income under paragraph (1) of subsection (e)
19             or subparagraph (E) of paragraph (2)  of  subsection
20             (e),  the  amount  by  which  addition modifications
21             other than those provided by this  subparagraph  (E)
22             exceeded  subtraction  modifications in such earlier
23             taxable year, with the following limitations applied
24             in the order that they are listed:
25                       (i)  the addition modification relating to
26                  the net operating loss carried back or  forward
27                  to  the  taxable  year  from  any  taxable year
28                  ending prior to  December  31,  1986  shall  be
29                  reduced  by the amount of addition modification
30                  under this subparagraph (E)  which  related  to
31                  that  net  operating  loss  and which was taken
32                  into account in calculating the base income  of
33                  an earlier taxable year, and
34                       (ii)  the  addition  modification relating
 
                            -11-               LRB9215312SMpk
 1                  to the  net  operating  loss  carried  back  or
 2                  forward  to  the  taxable year from any taxable
 3                  year ending prior to December  31,  1986  shall
 4                  not  exceed  the  amount  of  such carryback or
 5                  carryforward;
 6                  For taxable years  in  which  there  is  a  net
 7             operating  loss  carryback or carryforward from more
 8             than one other taxable year ending prior to December
 9             31, 1986, the addition modification provided in this
10             subparagraph (E) shall be the  sum  of  the  amounts
11             computed    independently    under   the   preceding
12             provisions of this subparagraph (E)  for  each  such
13             taxable year; and
14                  (E-5)  For  taxable years ending after December
15             31,  1997,  an  amount   equal   to   any   eligible
16             remediation  costs  that the corporation deducted in
17             computing adjusted gross income and  for  which  the
18             corporation  claims a credit under subsection (l) of
19             Section 201;
20        and by deducting from the total so obtained  the  sum  of
21        the following amounts:
22                  (F)  An  amount  equal to the amount of any tax
23             imposed by  this  Act  which  was  refunded  to  the
24             taxpayer  and included in such total for the taxable
25             year;
26                  (G)  An amount equal to any amount included  in
27             such  total under Section 78 of the Internal Revenue
28             Code;
29                  (H)  In the  case  of  a  regulated  investment
30             company,  an  amount  equal  to the amount of exempt
31             interest dividends as defined in subsection (b)  (5)
32             of Section 852 of the Internal Revenue Code, paid to
33             shareholders for the taxable year;
34                  (I)  With   the   exception   of   any  amounts
 
                            -12-               LRB9215312SMpk
 1             subtracted under subparagraph (J), an  amount  equal
 2             to  the  sum of all amounts disallowed as deductions
 3             by  (i)  Sections  171(a)  (2),  and  265(a)(2)  and
 4             amounts disallowed as interest  expense  by  Section
 5             291(a)(3)  of  the  Internal Revenue Code, as now or
 6             hereafter  amended,  and  all  amounts  of  expenses
 7             allocable to interest and disallowed  as  deductions
 8             by  Section  265(a)(1) of the Internal Revenue Code,
 9             as now or hereafter amended; and  (ii)  for  taxable
10             years  ending  on or after August 13, 1999, Sections
11             171(a)(2), 265, 280C, 291(a)(3), and 832(b)(5)(B)(i)
12             of the Internal Revenue Code; the provisions of this
13             subparagraph  are  exempt  from  the  provisions  of
14             Section 250;
15                  (J)  An amount equal to all amounts included in
16             such total which are exempt from  taxation  by  this
17             State   either   by   reason   of  its  statutes  or
18             Constitution  or  by  reason  of  the  Constitution,
19             treaties or statutes of the United States;  provided
20             that,  in the case of any statute of this State that
21             exempts  income  derived   from   bonds   or   other
22             obligations from the tax imposed under this Act, the
23             amount  exempted  shall  be the interest net of bond
24             premium amortization;
25                  (K)  An  amount  equal   to   those   dividends
26             included   in  such  total  which  were  paid  by  a
27             corporation which conducts business operations in an
28             Enterprise Zone or zones created under the  Illinois
29             Enterprise  Zone  Act and conducts substantially all
30             of its operations in an Enterprise Zone or zones;
31                  (L)  An  amount  equal   to   those   dividends
32             included   in   such  total  that  were  paid  by  a
33             corporation that conducts business operations  in  a
34             federally  designated Foreign Trade Zone or Sub-Zone
 
                            -13-               LRB9215312SMpk
 1             and  that  is  designated  a  High  Impact  Business
 2             located  in  Illinois;   provided   that   dividends
 3             eligible  for the deduction provided in subparagraph
 4             (K) of paragraph 2 of this subsection shall  not  be
 5             eligible  for  the  deduction  provided  under  this
 6             subparagraph (L);
 7                  (M)  For  any  taxpayer  that  is  a  financial
 8             organization within the meaning of Section 304(c) of
 9             this  Act,  an  amount  included  in  such  total as
10             interest income from a loan or loans  made  by  such
11             taxpayer  to  a  borrower, to the extent that such a
12             loan is secured by property which  is  eligible  for
13             the Enterprise Zone Investment Credit.  To determine
14             the  portion  of  a loan or loans that is secured by
15             property eligible for a  Section  201(f)  investment
16             credit  to the borrower, the entire principal amount
17             of the loan or loans between the  taxpayer  and  the
18             borrower  should  be  divided  into the basis of the
19             Section  201(f)  investment  credit  property  which
20             secures the loan or loans, using  for  this  purpose
21             the original basis of such property on the date that
22             it  was  placed  in  service in the Enterprise Zone.
23             The subtraction modification available  to  taxpayer
24             in  any  year  under  this  subsection shall be that
25             portion of the total interest paid by  the  borrower
26             with  respect  to  such  loan  attributable  to  the
27             eligible  property  as calculated under the previous
28             sentence;
29                  (M-1)  For any taxpayer  that  is  a  financial
30             organization within the meaning of Section 304(c) of
31             this  Act,  an  amount  included  in  such  total as
32             interest income from a loan or loans  made  by  such
33             taxpayer  to  a  borrower, to the extent that such a
34             loan is secured by property which  is  eligible  for
 
                            -14-               LRB9215312SMpk
 1             the  High  Impact  Business  Investment  Credit.  To
 2             determine the portion of a loan  or  loans  that  is
 3             secured  by  property  eligible for a Section 201(h)
 4             investment  credit  to  the  borrower,  the   entire
 5             principal  amount  of  the loan or loans between the
 6             taxpayer and the borrower should be divided into the
 7             basis  of  the  Section  201(h)  investment   credit
 8             property  which secures the loan or loans, using for
 9             this purpose the original basis of such property  on
10             the  date  that  it  was  placed  in  service  in  a
11             federally  designated Foreign Trade Zone or Sub-Zone
12             located in Illinois.  No taxpayer that  is  eligible
13             for  the  deduction  provided in subparagraph (M) of
14             paragraph (2) of this subsection shall  be  eligible
15             for  the  deduction provided under this subparagraph
16             (M-1).  The subtraction  modification  available  to
17             taxpayers in any year under this subsection shall be
18             that  portion  of  the  total  interest  paid by the
19             borrower with respect to such loan  attributable  to
20             the   eligible  property  as  calculated  under  the
21             previous sentence;
22                  (N)  Two times any contribution made during the
23             taxable year to a designated  zone  organization  to
24             the  extent that the contribution (i) qualifies as a
25             charitable  contribution  under  subsection  (c)  of
26             Section 170 of the Internal Revenue  Code  and  (ii)
27             must,  by  its terms, be used for a project approved
28             by the Department of Commerce and Community  Affairs
29             under  Section  11  of  the Illinois Enterprise Zone
30             Act;
31                  (O)  An amount equal to: (i)  85%  for  taxable
32             years  ending  on or before December 31, 1992, or, a
33             percentage equal to the percentage  allowable  under
34             Section  243(a)(1)  of  the Internal Revenue Code of
 
                            -15-               LRB9215312SMpk
 1             1986 for taxable years  ending  after  December  31,
 2             1992,  of  the amount by which dividends included in
 3             taxable income and received from a corporation  that
 4             is  not  created  or organized under the laws of the
 5             United States or any state or political  subdivision
 6             thereof,  including,  for taxable years ending on or
 7             after  December  31,  1988,  dividends  received  or
 8             deemed  received  or  paid  or  deemed  paid   under
 9             Sections  951  through  964  of the Internal Revenue
10             Code, exceed the amount of the modification provided
11             under subparagraph (G)  of  paragraph  (2)  of  this
12             subsection  (b)  which is related to such dividends;
13             plus (ii) 100% of the  amount  by  which  dividends,
14             included  in taxable income and received, including,
15             for taxable years ending on or  after  December  31,
16             1988,  dividends received or deemed received or paid
17             or deemed paid under Sections 951 through 964 of the
18             Internal Revenue Code,  from  any  such  corporation
19             specified  in  clause  (i)  that  would  but for the
20             provisions of Section 1504 (b) (3) of  the  Internal
21             Revenue   Code   be  treated  as  a  member  of  the
22             affiliated  group  which   includes   the   dividend
23             recipient,  exceed  the  amount  of the modification
24             provided under subparagraph (G) of paragraph (2)  of
25             this   subsection  (b)  which  is  related  to  such
26             dividends;
27                  (P)  An amount equal to any  contribution  made
28             to  a  job  training project established pursuant to
29             the Tax Increment Allocation Redevelopment Act;
30                  (Q)  An amount  equal  to  the  amount  of  the
31             deduction  used  to  compute  the federal income tax
32             credit for restoration of substantial  amounts  held
33             under  claim  of right for the taxable year pursuant
34             to Section 1341 of  the  Internal  Revenue  Code  of
 
                            -16-               LRB9215312SMpk
 1             1986;
 2                  (R)  In  the  case  of an attorney-in-fact with
 3             respect to whom  an  interinsurer  or  a  reciprocal
 4             insurer  has  made the election under Section 835 of
 5             the Internal Revenue Code, 26 U.S.C. 835, an  amount
 6             equal  to the excess, if any, of the amounts paid or
 7             incurred by that interinsurer or reciprocal  insurer
 8             in the taxable year to the attorney-in-fact over the
 9             deduction allowed to that interinsurer or reciprocal
10             insurer  with  respect to the attorney-in-fact under
11             Section 835(b) of the Internal Revenue Code for  the
12             taxable year; and
13                  (S)  For  taxable  years  ending  on  or  after
14             December  31,  1997,  in  the case of a Subchapter S
15             corporation, an  amount  equal  to  all  amounts  of
16             income  allocable  to  a  shareholder subject to the
17             Personal Property Tax Replacement Income Tax imposed
18             by subsections (c) and (d) of Section  201  of  this
19             Act,  including  amounts  allocable to organizations
20             exempt from federal income tax by reason of  Section
21             501(a)   of   the   Internal   Revenue  Code.   This
22             subparagraph (S) is exempt from  the  provisions  of
23             Section 250.
24             (3)  Special  rule.   For  purposes of paragraph (2)
25        (A), "gross income" in  the  case  of  a  life  insurance
26        company,  for  tax years ending on and after December 31,
27        1994, shall mean the  gross  investment  income  for  the
28        taxable year.

29        (c)  Trusts and estates.
30             (1)  In  general.  In the case of a trust or estate,
31        base income means  an  amount  equal  to  the  taxpayer's
32        taxable  income  for  the  taxable  year  as  modified by
33        paragraph (2).
34             (2)  Modifications.  Subject to  the  provisions  of
 
                            -17-               LRB9215312SMpk
 1        paragraph   (3),   the  taxable  income  referred  to  in
 2        paragraph (1) shall be modified by adding thereto the sum
 3        of the following amounts:
 4                  (A)  An amount equal to  all  amounts  paid  or
 5             accrued  to  the  taxpayer  as interest or dividends
 6             during the taxable year to the extent excluded  from
 7             gross income in the computation of taxable income;
 8                  (B)  In the case of (i) an estate, $600; (ii) a
 9             trust  which,  under  its  governing  instrument, is
10             required to distribute all of its income  currently,
11             $300;  and  (iii) any other trust, $100, but in each
12             such case,  only  to  the  extent  such  amount  was
13             deducted in the computation of taxable income;
14                  (C)  An  amount  equal  to  the  amount  of tax
15             imposed by this Act  to  the  extent  deducted  from
16             gross  income  in  the computation of taxable income
17             for the taxable year;
18                  (D)  The  amount  of  any  net  operating  loss
19             deduction taken in arriving at taxable income, other
20             than a net operating loss  carried  forward  from  a
21             taxable year ending prior to December 31, 1986;
22                  (E)  For taxable years in which a net operating
23             loss  carryback  or carryforward from a taxable year
24             ending prior to December 31, 1986 is an  element  of
25             taxable income under paragraph (1) of subsection (e)
26             or  subparagraph  (E) of paragraph (2) of subsection
27             (e), the  amount  by  which  addition  modifications
28             other  than  those provided by this subparagraph (E)
29             exceeded subtraction modifications in  such  taxable
30             year,  with the following limitations applied in the
31             order that they are listed:
32                       (i)  the addition modification relating to
33                  the net operating loss carried back or  forward
34                  to  the  taxable  year  from  any  taxable year
 
                            -18-               LRB9215312SMpk
 1                  ending prior to  December  31,  1986  shall  be
 2                  reduced  by the amount of addition modification
 3                  under this subparagraph (E)  which  related  to
 4                  that  net  operating  loss  and which was taken
 5                  into account in calculating the base income  of
 6                  an earlier taxable year, and
 7                       (ii)  the  addition  modification relating
 8                  to the  net  operating  loss  carried  back  or
 9                  forward  to  the  taxable year from any taxable
10                  year ending prior to December  31,  1986  shall
11                  not  exceed  the  amount  of  such carryback or
12                  carryforward;
13                  For taxable years  in  which  there  is  a  net
14             operating  loss  carryback or carryforward from more
15             than one other taxable year ending prior to December
16             31, 1986, the addition modification provided in this
17             subparagraph (E) shall be the  sum  of  the  amounts
18             computed    independently    under   the   preceding
19             provisions of this subparagraph (E)  for  each  such
20             taxable year;
21                  (F)  For  taxable  years  ending  on  or  after
22             January 1, 1989, an amount equal to the tax deducted
23             pursuant to Section 164 of the Internal Revenue Code
24             if  the trust or estate is claiming the same tax for
25             purposes of the Illinois foreign  tax  credit  under
26             Section 601 of this Act;
27                  (G)  An  amount  equal  to  the  amount  of the
28             capital gain deduction allowable under the  Internal
29             Revenue  Code,  to  the  extent  deducted from gross
30             income in the computation of taxable income; and
31                  (G-5)  For taxable years ending after  December
32             31,   1997,   an   amount   equal  to  any  eligible
33             remediation costs that the trust or estate  deducted
34             in computing adjusted gross income and for which the
 
                            -19-               LRB9215312SMpk
 1             trust or estate claims a credit under subsection (l)
 2             of Section 201;
 3        and  by  deducting  from the total so obtained the sum of
 4        the following amounts:
 5                  (H)  An amount equal to all amounts included in
 6             such total pursuant to the  provisions  of  Sections
 7             402(a),  402(c),  403(a), 403(b), 406(a), 407(a) and
 8             408 of the Internal Revenue Code or included in such
 9             total as distributions under the provisions  of  any
10             retirement  or  disability plan for employees of any
11             governmental agency or unit, or retirement  payments
12             to  retired partners, which payments are excluded in
13             computing  net  earnings  from  self  employment  by
14             Section  1402  of  the  Internal  Revenue  Code  and
15             regulations adopted pursuant thereto;
16                  (I)  The valuation limitation amount;
17                  (J)  An amount equal to the amount of  any  tax
18             imposed  by  this  Act  which  was  refunded  to the
19             taxpayer and included in such total for the  taxable
20             year;
21                  (K)  An amount equal to all amounts included in
22             taxable  income  as  modified  by subparagraphs (A),
23             (B), (C), (D), (E), (F) and  (G)  which  are  exempt
24             from  taxation by this State either by reason of its
25             statutes  or  Constitution  or  by  reason  of   the
26             Constitution,  treaties  or  statutes  of the United
27             States; provided that, in the case of any statute of
28             this State that exempts income derived from bonds or
29             other obligations from the tax  imposed  under  this
30             Act,  the  amount exempted shall be the interest net
31             of bond premium amortization;
32                  (L)  With  the   exception   of   any   amounts
33             subtracted  under  subparagraph (K), an amount equal
34             to the sum of all amounts disallowed  as  deductions
 
                            -20-               LRB9215312SMpk
 1             by  (i)  Sections  171(a)  (2)  and 265(a)(2) of the
 2             Internal Revenue Code, as now or hereafter  amended,
 3             and  all  amounts  of expenses allocable to interest
 4             and disallowed as deductions by  Section  265(1)  of
 5             the  Internal  Revenue  Code  of  1954,  as  now  or
 6             hereafter amended; and (ii) for taxable years ending
 7             on  or  after  August  13, 1999, Sections 171(a)(2),
 8             265,  280C,  and  832(b)(5)(B)(i)  of  the  Internal
 9             Revenue Code; the provisions  of  this  subparagraph
10             are exempt from the provisions of Section 250;
11                  (M)  An   amount   equal   to  those  dividends
12             included  in  such  total  which  were  paid  by   a
13             corporation which conducts business operations in an
14             Enterprise  Zone or zones created under the Illinois
15             Enterprise Zone Act and conducts  substantially  all
16             of its operations in an Enterprise Zone or Zones;
17                  (N)  An  amount  equal to any contribution made
18             to a job training project  established  pursuant  to
19             the Tax Increment Allocation Redevelopment Act;
20                  (O)  An   amount   equal   to  those  dividends
21             included  in  such  total  that  were  paid   by   a
22             corporation  that  conducts business operations in a
23             federally designated Foreign Trade Zone or  Sub-Zone
24             and  that  is  designated  a  High  Impact  Business
25             located   in   Illinois;   provided  that  dividends
26             eligible for the deduction provided in  subparagraph
27             (M) of paragraph (2) of this subsection shall not be
28             eligible  for  the  deduction  provided  under  this
29             subparagraph (O);
30                  (P)  An  amount  equal  to  the  amount  of the
31             deduction used to compute  the  federal  income  tax
32             credit  for  restoration of substantial amounts held
33             under claim of right for the taxable  year  pursuant
34             to  Section  1341  of  the  Internal Revenue Code of
 
                            -21-               LRB9215312SMpk
 1             1986; and
 2                  (Q)  For taxable year 1999 and  thereafter,  an
 3             amount equal to the amount of any (i) distributions,
 4             to the extent includible in gross income for federal
 5             income tax purposes, made to the taxpayer because of
 6             his  or  her  status  as a victim of persecution for
 7             racial or religious reasons by Nazi Germany  or  any
 8             other  Axis  regime  or as an heir of the victim and
 9             (ii) items of income, to the  extent  includible  in
10             gross   income  for  federal  income  tax  purposes,
11             attributable to, derived from or in any way  related
12             to  assets  stolen  from,  hidden from, or otherwise
13             lost to  a  victim  of  persecution  for  racial  or
14             religious  reasons by Nazi Germany or any other Axis
15             regime immediately prior to, during, and immediately
16             after World War II, including, but not  limited  to,
17             interest  on  the  proceeds  receivable as insurance
18             under policies issued to a victim of persecution for
19             racial or religious reasons by Nazi Germany  or  any
20             other  Axis  regime  by European insurance companies
21             immediately  prior  to  and  during  World  War  II;
22             provided, however,  this  subtraction  from  federal
23             adjusted  gross  income  does  not  apply  to assets
24             acquired with such assets or with the proceeds  from
25             the  sale  of  such  assets; provided, further, this
26             paragraph shall only apply to a taxpayer who was the
27             first recipient of such assets after their  recovery
28             and  who  is  a victim of  persecution for racial or
29             religious reasons by Nazi Germany or any other  Axis
30             regime  or  as an heir of the victim.  The amount of
31             and  the  eligibility  for  any  public  assistance,
32             benefit, or similar entitlement is not  affected  by
33             the   inclusion  of  items  (i)  and  (ii)  of  this
34             paragraph in gross income  for  federal  income  tax
 
                            -22-               LRB9215312SMpk
 1             purposes.   This   paragraph   is  exempt  from  the
 2             provisions of Section 250.
 3             (3)  Limitation.  The  amount  of  any  modification
 4        otherwise  required  under  this  subsection shall, under
 5        regulations prescribed by the Department, be adjusted  by
 6        any  amounts  included  therein which were properly paid,
 7        credited, or required to be distributed,  or  permanently
 8        set  aside  for charitable purposes pursuant  to Internal
 9        Revenue Code Section 642(c) during the taxable year.

10        (d)  Partnerships.
11             (1)  In general. In the case of a partnership,  base
12        income  means  an  amount equal to the taxpayer's taxable
13        income for the taxable year as modified by paragraph (2).
14             (2)  Modifications. The taxable income  referred  to
15        in  paragraph (1) shall be modified by adding thereto the
16        sum of the following amounts:
17                  (A)  An amount equal to  all  amounts  paid  or
18             accrued  to  the  taxpayer  as interest or dividends
19             during the taxable year to the extent excluded  from
20             gross income in the computation of taxable income;
21                  (B)  An  amount  equal  to  the  amount  of tax
22             imposed by this Act  to  the  extent  deducted  from
23             gross income for the taxable year;
24                  (C)  The  amount  of  deductions allowed to the
25             partnership pursuant  to  Section  707  (c)  of  the
26             Internal  Revenue  Code  in  calculating its taxable
27             income; and
28                  (D)  An amount  equal  to  the  amount  of  the
29             capital  gain deduction allowable under the Internal
30             Revenue Code, to  the  extent  deducted  from  gross
31             income in the computation of taxable income;
32        and by deducting from the total so obtained the following
33        amounts:
34                  (E)  The valuation limitation amount;
 
                            -23-               LRB9215312SMpk
 1                  (F)  An  amount  equal to the amount of any tax
 2             imposed by  this  Act  which  was  refunded  to  the
 3             taxpayer  and included in such total for the taxable
 4             year;
 5                  (G)  An amount equal to all amounts included in
 6             taxable income as  modified  by  subparagraphs  (A),
 7             (B),  (C)  and (D) which are exempt from taxation by
 8             this State either  by  reason  of  its  statutes  or
 9             Constitution  or  by  reason  of  the  Constitution,
10             treaties  or statutes of the United States; provided
11             that, in the case of any statute of this State  that
12             exempts   income   derived   from   bonds  or  other
13             obligations from the tax imposed under this Act, the
14             amount exempted shall be the interest  net  of  bond
15             premium amortization;
16                  (H)  Any   income   of  the  partnership  which
17             constitutes personal service income  as  defined  in
18             Section  1348  (b)  (1) of the Internal Revenue Code
19             (as in effect December 31,  1981)  or  a  reasonable
20             allowance  for  compensation  paid  or  accrued  for
21             services  rendered  by  partners to the partnership,
22             whichever is greater;
23                  (I)  An amount equal to all amounts  of  income
24             distributable  to  an entity subject to the Personal
25             Property  Tax  Replacement  Income  Tax  imposed  by
26             subsections (c) and (d) of Section 201 of  this  Act
27             including  amounts  distributable  to  organizations
28             exempt  from federal income tax by reason of Section
29             501(a) of the Internal Revenue Code;
30                  (J)  With  the   exception   of   any   amounts
31             subtracted  under  subparagraph (G), an amount equal
32             to the sum of all amounts disallowed  as  deductions
33             by  (i)  Sections  171(a)  (2),  and  265(2)  of the
34             Internal Revenue Code of 1954, as now  or  hereafter
 
                            -24-               LRB9215312SMpk
 1             amended,  and  all  amounts of expenses allocable to
 2             interest and disallowed  as  deductions  by  Section
 3             265(1)  of  the  Internal  Revenue  Code,  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                  (K)  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,  enacted  by the 82nd General
14             Assembly, and which does not conduct such operations
15             other than in an Enterprise Zone or Zones;
16                  (L)  An amount equal to any  contribution  made
17             to  a  job  training project established pursuant to
18             the   Real   Property   Tax   Increment   Allocation
19             Redevelopment Act;
20                  (M)  An  amount  equal   to   those   dividends
21             included   in   such  total  that  were  paid  by  a
22             corporation that conducts business operations  in  a
23             federally  designated Foreign Trade Zone or Sub-Zone
24             and  that  is  designated  a  High  Impact  Business
25             located  in  Illinois;   provided   that   dividends
26             eligible  for the deduction provided in subparagraph
27             (K) of paragraph (2) of this subsection shall not be
28             eligible  for  the  deduction  provided  under  this
29             subparagraph (M); and
30                  (N)  An amount  equal  to  the  amount  of  the
31             deduction  used  to  compute  the federal income tax
32             credit for restoration of substantial  amounts  held
33             under  claim  of right for the taxable year pursuant
34             to Section 1341 of  the  Internal  Revenue  Code  of
 
                            -25-               LRB9215312SMpk
 1             1986.

 2        (e)  Gross income; adjusted gross income; taxable income.
 3             (1)  In  general.   Subject  to  the  provisions  of
 4        paragraph  (2)  and  subsection  (b) (3), for purposes of
 5        this Section  and  Section  803(e),  a  taxpayer's  gross
 6        income,  adjusted gross income, or taxable income for the
 7        taxable year shall  mean  the  amount  of  gross  income,
 8        adjusted   gross   income   or  taxable  income  properly
 9        reportable  for  federal  income  tax  purposes  for  the
10        taxable year under the provisions of the Internal Revenue
11        Code. Taxable income may be less than zero. However,  for
12        taxable  years  ending on or after December 31, 1986, net
13        operating loss carryforwards from  taxable  years  ending
14        prior  to  December  31,  1986, may not exceed the sum of
15        federal taxable income for the taxable  year  before  net
16        operating  loss  deduction,  plus  the excess of addition
17        modifications  over  subtraction  modifications  for  the
18        taxable year.  For taxable years ending prior to December
19        31, 1986, taxable income may never be an amount in excess
20        of the net operating loss for the taxable year as defined
21        in subsections (c) and (d) of Section 172 of the Internal
22        Revenue Code, provided that  when  taxable  income  of  a
23        corporation  (other  than  a  Subchapter  S corporation),
24        trust,  or  estate  is  less  than  zero   and   addition
25        modifications,  other than those provided by subparagraph
26        (E) of paragraph (2) of subsection (b)  for  corporations
27        or  subparagraph  (E)  of paragraph (2) of subsection (c)
28        for trusts and estates, exceed subtraction modifications,
29        an  addition  modification  must  be  made  under   those
30        subparagraphs  for  any  other  taxable year to which the
31        taxable income less than zero  (net  operating  loss)  is
32        applied under Section 172 of the Internal Revenue Code or
33        under   subparagraph   (E)   of  paragraph  (2)  of  this
34        subsection (e) applied in conjunction with Section 172 of
 
                            -26-               LRB9215312SMpk
 1        the Internal Revenue Code.
 2             (2)  Special rule.  For purposes of paragraph (1) of
 3        this subsection, the taxable income  properly  reportable
 4        for federal income tax purposes shall mean:
 5                  (A)  Certain  life insurance companies.  In the
 6             case of a life insurance company subject to the  tax
 7             imposed by Section 801 of the Internal Revenue Code,
 8             life  insurance  company  taxable  income,  plus the
 9             amount of distribution  from  pre-1984  policyholder
10             surplus accounts as calculated under Section 815a of
11             the Internal Revenue Code;
12                  (B)  Certain other insurance companies.  In the
13             case  of  mutual  insurance companies subject to the
14             tax imposed by Section 831 of the  Internal  Revenue
15             Code, insurance company taxable income;
16                  (C)  Regulated  investment  companies.   In the
17             case of a regulated investment  company  subject  to
18             the  tax  imposed  by  Section  852  of the Internal
19             Revenue Code, investment company taxable income;
20                  (D)  Real estate  investment  trusts.   In  the
21             case  of  a  real estate investment trust subject to
22             the tax imposed  by  Section  857  of  the  Internal
23             Revenue  Code,  real estate investment trust taxable
24             income;
25                  (E)  Consolidated corporations.  In the case of
26             a corporation which is a  member  of  an  affiliated
27             group  of  corporations filing a consolidated income
28             tax return for the taxable year for  federal  income
29             tax  purposes,  taxable income determined as if such
30             corporation had filed a separate return for  federal
31             income  tax  purposes  for the taxable year and each
32             preceding taxable year for which it was a member  of
33             an   affiliated   group.   For   purposes   of  this
34             subparagraph, the taxpayer's separate taxable income
 
                            -27-               LRB9215312SMpk
 1             shall be determined as if the election  provided  by
 2             Section  243(b) (2) of the Internal Revenue Code had
 3             been in effect for all such years;
 4                  (F)  Cooperatives.    In   the   case   of    a
 5             cooperative  corporation or association, the taxable
 6             income of such organization determined in accordance
 7             with the provisions of Section 1381 through 1388  of
 8             the Internal Revenue Code;
 9                  (G)  Subchapter  S  corporations.   In the case
10             of: (i) a Subchapter S corporation for  which  there
11             is  in effect an election for the taxable year under
12             Section 1362  of  the  Internal  Revenue  Code,  the
13             taxable  income  of  such  corporation determined in
14             accordance with  Section  1363(b)  of  the  Internal
15             Revenue  Code, except that taxable income shall take
16             into account  those  items  which  are  required  by
17             Section  1363(b)(1)  of the Internal Revenue Code to
18             be  separately  stated;  and  (ii)  a  Subchapter  S
19             corporation for which there is in effect  a  federal
20             election  to  opt  out  of  the  provisions  of  the
21             Subchapter  S  Revision Act of 1982 and have applied
22             instead the prior federal Subchapter S rules  as  in
23             effect  on  July 1, 1982, the taxable income of such
24             corporation  determined  in  accordance   with   the
25             federal  Subchapter  S rules as in effect on July 1,
26             1982; and
27                  (H)  Partnerships.    In   the   case   of    a
28             partnership, taxable income determined in accordance
29             with  Section  703  of  the  Internal  Revenue Code,
30             except that taxable income shall take  into  account
31             those  items which are required by Section 703(a)(1)
32             to be separately stated but  which  would  be  taken
33             into  account  by  an  individual in calculating his
34             taxable income.
 
                            -28-               LRB9215312SMpk
 1        (f)  Valuation limitation amount.
 2             (1)  In general.  The  valuation  limitation  amount
 3        referred  to  in subsections (a) (2) (G), (c) (2) (I) and
 4        (d)(2) (E) is an amount equal to:
 5                  (A)  The  sum  of  the   pre-August   1,   1969
 6             appreciation  amounts  (to  the extent consisting of
 7             gain reportable under the provisions of Section 1245
 8             or 1250  of  the  Internal  Revenue  Code)  for  all
 9             property  in respect of which such gain was reported
10             for the taxable year; plus
11                  (B)  The  lesser  of  (i)  the   sum   of   the
12             pre-August  1,  1969  appreciation  amounts  (to the
13             extent consisting of capital gain) for all  property
14             in  respect  of  which  such  gain  was reported for
15             federal income tax purposes for the taxable year, or
16             (ii) the net capital  gain  for  the  taxable  year,
17             reduced  in  either  case by any amount of such gain
18             included in the amount determined  under  subsection
19             (a) (2) (F) or (c) (2) (H).
20             (2)  Pre-August 1, 1969 appreciation amount.
21                  (A)  If  the  fair  market  value  of  property
22             referred   to   in   paragraph   (1)   was   readily
23             ascertainable  on  August 1, 1969, the pre-August 1,
24             1969 appreciation amount for such  property  is  the
25             lesser  of  (i) the excess of such fair market value
26             over the taxpayer's basis (for determining gain) for
27             such property on that  date  (determined  under  the
28             Internal Revenue Code as in effect on that date), or
29             (ii)  the  total  gain  realized  and reportable for
30             federal income tax purposes in respect of the  sale,
31             exchange or other disposition of such property.
32                  (B)  If  the  fair  market  value  of  property
33             referred   to  in  paragraph  (1)  was  not  readily
34             ascertainable on August 1, 1969, the  pre-August  1,
 
                            -29-               LRB9215312SMpk
 1             1969  appreciation  amount for such property is that
 2             amount which bears the same ratio to the total  gain
 3             reported  in  respect  of  the  property for federal
 4             income tax purposes for the  taxable  year,  as  the
 5             number  of  full calendar months in that part of the
 6             taxpayer's holding period for  the  property  ending
 7             July  31,  1969 bears to the number of full calendar
 8             months in the taxpayer's entire holding  period  for
 9             the property.
10                  (C)  The   Department   shall   prescribe  such
11             regulations as may be necessary  to  carry  out  the
12             purposes of this paragraph.

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

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

30        Section  99.  Effective date.  This Act takes effect upon
31    becoming law.

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