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Public Act 103-0478 | ||||
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the | ||||
Illinois Fertility Fraud Act. | ||||
Section 5. Legislative intent. The General Assembly finds | ||||
that fertility fraud, or the assisted reproductive treatment | ||||
of a patient using the health care provider's own human | ||||
reproductive material without the patient's informed written | ||||
consent, has caused significant harm and had a severe negative | ||||
impact on residents of this State including former patients | ||||
and their children. This conduct has never constituted or | ||||
complied with the medical standard of care and violates | ||||
doctor-patient trust. Often discovering the fraud through DNA | ||||
testing many years later, these individuals must now cope with | ||||
knowing that their bodies and autonomy were violated, grapple | ||||
with the sexual nature of the conduct, and negotiate identity | ||||
issues and changing family relationships. Therefore, it is the | ||||
intent of the General Assembly that any civil action | ||||
authorized by this Act shall be retroactive and apply to any | ||||
treatment by a health care provider occurring prior to the | ||||
effective date of this Act. |
Section 10. Definitions. As used in this Act: | ||
"Assisted reproductive treatment" means treatment pursuant | ||
to assisted reproduction, as defined in the Reproductive | ||
Health Act, as a method of achieving a pregnancy through the | ||
handling of human oocytes, sperm, zygotes, or embryos for the | ||
purpose of establishing a pregnancy. "Assisted reproduction" | ||
includes, but is not limited to, methods of artificial | ||
insemination, in vitro fertilization, embryo transfer, zygote | ||
transfer, embryo biopsy, preimplantation genetic diagnosis, | ||
embryo cryopreservation, oocyte, gamete, zygote, and embryo | ||
donation, and gestational surrogacy. | ||
"Embryologist" means a laboratory employee who meets any | ||
Clinical Laboratory Improvement Amendments (CLIA) program | ||
requirements for laboratory personnel that are required by 42 | ||
CFR Part 493 or the Illinois Clinical Laboratories Code, and | ||
who performs embryology procedures. | ||
"Embryology procedures" include:
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(1) culture media preparation and laboratory quality | ||
control; | ||
(2) oocyte isolation and identification; | ||
(3) oocyte maturity and health status assessment; | ||
(4) oocyte insemination; | ||
(5) evaluation of fertilization; | ||
(6) zygote quality assessment; | ||
(7) embryo culture and grading; | ||
(8) embryo transfer; |
(9) gamete or embryo cryopreservation; and | ||
(10) micromanipulation of gametes or embryos, | ||
including
intracytoplasmic sperm injection, assisted | ||
hatching, and
embryo biopsy. | ||
"Health care" means any phase of patient care, including, | ||
but not limited to: testing; diagnosis; prognosis; ancillary | ||
research; instructions; assisted reproduction; family | ||
planning, counseling, referrals, or any other advice in | ||
connection with conception; surgery or other care or treatment | ||
rendered by a physician, nurse, paraprofessional, or health | ||
care facility, intended for the physical, emotional, and | ||
mental well-being of persons. | ||
"Health care provider" means a physician, physician | ||
assistant, advanced practice registered nurse, registered | ||
nurse, licensed practical nurse, any individual licensed under | ||
the laws of this State to provide health care, or any | ||
individual who handles human reproductive material in a health | ||
care setting. | ||
"Human reproductive material" means: | ||
(1) a human spermatozoon or ovum; or | ||
(2) a human organism at any stage of development from | ||
fertilized ovum to embryo. | ||
"In vitro fertilization" means all medical and laboratory | ||
procedures that are necessary to effectuate the extracorporeal | ||
fertilization of egg and sperm. | ||
"Intended parent" means a person who enters into an |
assisted reproductive technology arrangement, including a | ||
gestational surrogacy arrangement, under which he or she will | ||
be the legal parent of the resulting child. | ||
"Laboratory" means a facility for the biological, | ||
microbiological, serological, chemical, immunohematological, | ||
hematological, biophysical, cytological, pathological, or | ||
other examination of materials derived from the human body for | ||
the purpose of providing information for the diagnosis, | ||
prevention, or treatment of any disease or impairment of, or | ||
the assessment of the health of, human beings. These | ||
examinations include procedures to determine, measure, or | ||
otherwise describe the presence or absence of various | ||
substances or organisms in the body. "Laboratory" does not | ||
include facilities only collecting or preparing specimens, or | ||
both, or only serving as a mailing service and not performing | ||
testing. | ||
"Physician" means a person licensed to practice medicine | ||
in all its branches in this State. | ||
Section 15. Fertility fraud. The following individuals may | ||
bring an action against any health care provider, | ||
embryologist, or any other person involved in any stage of the | ||
treatment who knowingly or intentionally used the health care | ||
provider's, embryologist's, or person's own human reproductive | ||
material without the patient's informed written consent to | ||
treatment using the health care provider's, embryologist's, or |
person's human reproductive material: | ||
(1) a patient who gives birth to a child after | ||
receiving assisted reproductive treatment or any other | ||
artificial means used to cause pregnancy; | ||
(2) the intended parent of the child born as a result | ||
of the assisted reproductive treatment; | ||
(3) the surviving spouse of a patient under paragraph | ||
(1); or | ||
(4) a child born as a result of the treatment. | ||
Section 20. Donor fertility fraud. A donor of human | ||
reproductive material may bring an action against any health | ||
care provider, embryologist, or any other person involved in | ||
any stage of the treatment who: | ||
(1) treats a patient for infertility by using human | ||
reproductive material donated by the donor; and | ||
(2) knows that the human reproductive material was | ||
used: | ||
(A) without the donor's consent; or | ||
(B) in a manner or to an extent other than that to | ||
which the donor consented. | ||
Section 25. Rewards. A plaintiff who prevails in an action | ||
under this Act is entitled to reasonable attorney's fees and: | ||
(1) compensatory and punitive damages; or | ||
(2) liquidated damages of $50,000. |
A plaintiff who prevails in an action brought under | ||
Section 15 is also entitled to the costs of the fertility | ||
treatment. | ||
Section 30. Protective order for access to personal | ||
medical records and health history. Any child born as a result | ||
of the fertility fraud referred to in Section 15 is entitled to | ||
a qualified protective order allowing the child access to the | ||
personal medical records and health history of the health care | ||
provider, embryologist, or other person who committed the | ||
fraud. | ||
Section 35. Causes of action. | ||
(a) A person who brings an action under Section 15 has a | ||
separate cause of action for each child born as the result of | ||
the fraudulent assisted reproductive treatment. | ||
(b) A donor or donor's estate that brings an action under | ||
Section 20 has a separate cause of action for each individual | ||
who received assisted reproductive treatment with the donor's | ||
human reproductive material. | ||
Section 40. Other remedies. Nothing in this Act may be | ||
construed to prohibit a person from pursuing any other remedy | ||
provided by law. | ||
Section 45. The Illinois Income Tax Act is amended by |
changing Section 203 as follows: | ||
(35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||
Sec. 203. Base income defined. | ||
(a) Individuals. | ||
(1) In general. In the case of an individual, base | ||
income means an
amount equal to the taxpayer's adjusted | ||
gross income for the taxable
year as modified by paragraph | ||
(2). | ||
(2) Modifications. The adjusted gross income referred | ||
to in
paragraph (1) shall be modified by adding thereto | ||
the sum of the
following amounts: | ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer
as interest or dividends during the | ||
taxable year to the extent excluded
from gross income | ||
in the computation of adjusted gross income, except | ||
stock
dividends of qualified public utilities | ||
described in Section 305(e) of the
Internal Revenue | ||
Code; | ||
(B) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income in | ||
the computation of adjusted gross
income for the | ||
taxable year; | ||
(C) An amount equal to the amount received during | ||
the taxable year
as a recovery or refund of real | ||
property taxes paid with respect to the
taxpayer's |
principal residence under the Revenue Act of
1939 and | ||
for which a deduction was previously taken under | ||
subparagraph (L) of
this paragraph (2) prior to July | ||
1, 1991, the retrospective application date of
Article | ||
4 of Public Act 87-17. In the case of multi-unit or | ||
multi-use
structures and farm dwellings, the taxes on | ||
the taxpayer's principal residence
shall be that | ||
portion of the total taxes for the entire property | ||
which is
attributable to such principal residence; | ||
(D) An amount equal to the amount of the capital | ||
gain deduction
allowable under the Internal Revenue | ||
Code, to the extent deducted from gross
income in the | ||
computation of adjusted gross income; | ||
(D-5) An amount, to the extent not included in | ||
adjusted gross income,
equal to the amount of money | ||
withdrawn by the taxpayer in the taxable year from
a | ||
medical care savings account and the interest earned | ||
on the account in the
taxable year of a withdrawal | ||
pursuant to subsection (b) of Section 20 of the
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Medical Care Savings Account Act or subsection (b) of | ||
Section 20 of the
Medical Care Savings Account Act of | ||
2000; | ||
(D-10) For taxable years ending after December 31, | ||
1997, an
amount equal to any eligible remediation | ||
costs that the individual
deducted in computing | ||
adjusted gross income and for which the
individual |
claims a credit under subsection (l) of Section 201; | ||
(D-15) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of | ||
the Internal Revenue Code; | ||
(D-16) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of property for which the | ||
taxpayer was required in any taxable year to
make an | ||
addition modification under subparagraph (D-15), then | ||
an amount equal
to the aggregate amount of the | ||
deductions taken in all taxable
years under | ||
subparagraph (Z) with respect to that property. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which a | ||
subtraction is allowed with respect to that property | ||
under subparagraph (Z) and for which the taxpayer was | ||
allowed in any taxable year to make a subtraction | ||
modification under subparagraph (Z), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property; | ||
(D-17) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or |
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact that foreign person's business activity outside | ||
the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income under Sections 951 through | ||
964 of the Internal Revenue Code and amounts included | ||
in gross income under Section 78 of the Internal | ||
Revenue Code) with respect to the stock of the same | ||
person to whom the interest was paid, accrued, or | ||
incurred. | ||
This paragraph shall not apply to the following:
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(i) an item of interest paid, accrued, or |
incurred, directly or indirectly, to a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the person, during the same taxable | ||
year, paid, accrued, or incurred, the interest | ||
to a person that is not a related member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
person did not have as a principal purpose the | ||
avoidance of Illinois income tax, and is paid | ||
pursuant to a contract or agreement that | ||
reflects an arm's-length interest rate and | ||
terms; or
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(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract | ||
or agreement entered into at arm's-length rates | ||
and terms and the principal purpose for the | ||
payment is not federal or Illinois tax avoidance; |
or
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(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence that the adjustments are unreasonable; or | ||
if the taxpayer and the Director agree in writing | ||
to the application or use of an alternative method | ||
of apportionment under Section 304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act | ||
for any tax year beginning after the effective | ||
date of this amendment provided such adjustment is | ||
made pursuant to regulation adopted by the | ||
Department and such regulations provide methods | ||
and standards by which the Department will utilize | ||
its authority under Section 404 of this Act;
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(D-18) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business |
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income under Sections 951 through 964 of the Internal | ||
Revenue Code and amounts included in gross income | ||
under Section 78 of the Internal Revenue Code) with | ||
respect to the stock of the same person to whom the | ||
intangible expenses and costs were directly or | ||
indirectly paid, incurred, or accrued. The preceding | ||
sentence does not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(a)(2)(D-17) of | ||
this Act. As used in this subparagraph, the term | ||
"intangible expenses and costs" includes (1) expenses, | ||
losses, and costs for, or related to, the direct or | ||
indirect acquisition, use, maintenance or management, |
ownership, sale, exchange, or any other disposition of | ||
intangible property; (2) losses incurred, directly or | ||
indirectly, from factoring transactions or discounting | ||
transactions; (3) royalty, patent, technical, and | ||
copyright fees; (4) licensing fees; and (5) other | ||
similar expenses and costs.
For purposes of this | ||
subparagraph, "intangible property" includes patents, | ||
patent applications, trade names, trademarks, service | ||
marks, copyrights, mask works, trade secrets, and | ||
similar types of intangible assets. | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the person during the same taxable | ||
year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is |
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the person did not have as a | ||
principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence, that the adjustments are unreasonable; | ||
or if the taxpayer and the Director agree in | ||
writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act | ||
for any tax year beginning after the effective | ||
date of this amendment provided such adjustment is | ||
made pursuant to regulation adopted by the | ||
Department and such regulations provide methods | ||
and standards by which the Department will utilize | ||
its authority under Section 404 of this Act;
|
(D-19) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed | ||
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the | ||
stock of the same person to whom the premiums and costs | ||
were directly or indirectly paid, incurred, or | ||
accrued. The preceding sentence does not apply to the | ||
extent that the same dividends caused a reduction to | ||
the addition modification required under Section | ||
203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this |
Act;
| ||
(D-20) For taxable years beginning on or after | ||
January 1,
2002 and ending on or before December 31, | ||
2006, in
the
case of a distribution from a qualified | ||
tuition program under Section 529 of
the Internal | ||
Revenue Code, other than (i) a distribution from a | ||
College Savings
Pool created under Section 16.5 of the | ||
State Treasurer Act or (ii) a
distribution from the | ||
Illinois Prepaid Tuition Trust Fund, an amount equal | ||
to
the amount excluded from gross income under Section | ||
529(c)(3)(B). For taxable years beginning on or after | ||
January 1, 2007, in the case of a distribution from a | ||
qualified tuition program under Section 529 of the | ||
Internal Revenue Code, other than (i) a distribution | ||
from a College Savings Pool created under Section 16.5 | ||
of the State Treasurer Act, (ii) a distribution from | ||
the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||
distribution from a qualified tuition program under | ||
Section 529 of the Internal Revenue Code that (I) | ||
adopts and determines that its offering materials | ||
comply with the College Savings Plans Network's | ||
disclosure principles and (II) has made reasonable | ||
efforts to inform in-state residents of the existence | ||
of in-state qualified tuition programs by informing | ||
Illinois residents directly and, where applicable, to | ||
inform financial intermediaries distributing the |
program to inform in-state residents of the existence | ||
of in-state qualified tuition programs at least | ||
annually, an amount equal to the amount excluded from | ||
gross income under Section 529(c)(3)(B). | ||
For the purposes of this subparagraph (D-20), a | ||
qualified tuition program has made reasonable efforts | ||
if it makes disclosures (which may use the term | ||
"in-state program" or "in-state plan" and need not | ||
specifically refer to Illinois or its qualified | ||
programs by name) (i) directly to prospective | ||
participants in its offering materials or makes a | ||
public disclosure, such as a website posting; and (ii) | ||
where applicable, to intermediaries selling the | ||
out-of-state program in the same manner that the | ||
out-of-state program distributes its offering | ||
materials; | ||
(D-20.5) For taxable years beginning on or after | ||
January 1, 2018, in the case of a distribution from a | ||
qualified ABLE program under Section 529A of the | ||
Internal Revenue Code, other than a distribution from | ||
a qualified ABLE program created under Section 16.6 of | ||
the State Treasurer Act, an amount equal to the amount | ||
excluded from gross income under Section 529A(c)(1)(B) | ||
of the Internal Revenue Code; | ||
(D-21) For taxable years beginning on or after | ||
January 1, 2007, in the case of transfer of moneys from |
a qualified tuition program under Section 529 of the | ||
Internal Revenue Code that is administered by the | ||
State to an out-of-state program, an amount equal to | ||
the amount of moneys previously deducted from base | ||
income under subsection (a)(2)(Y) of this Section; | ||
(D-21.5) For taxable years beginning on or after | ||
January 1, 2018, in the case of the transfer of moneys | ||
from a qualified tuition program under Section 529 or | ||
a qualified ABLE program under Section 529A of the | ||
Internal Revenue Code that is administered by this | ||
State to an ABLE account established under an | ||
out-of-state ABLE account program, an amount equal to | ||
the contribution component of the transferred amount | ||
that was previously deducted from base income under | ||
subsection (a)(2)(Y) or subsection (a)(2)(HH) of this | ||
Section; | ||
(D-22) For taxable years beginning on or after | ||
January 1, 2009, and prior to January 1, 2018, in the | ||
case of a nonqualified withdrawal or refund of moneys | ||
from a qualified tuition program under Section 529 of | ||
the Internal Revenue Code administered by the State | ||
that is not used for qualified expenses at an eligible | ||
education institution, an amount equal to the | ||
contribution component of the nonqualified withdrawal | ||
or refund that was previously deducted from base | ||
income under subsection (a)(2)(y) of this Section, |
provided that the withdrawal or refund did not result | ||
from the beneficiary's death or disability. For | ||
taxable years beginning on or after January 1, 2018: | ||
(1) in the case of a nonqualified withdrawal or | ||
refund, as defined under Section
16.5 of the State | ||
Treasurer Act, of moneys from a qualified tuition | ||
program under Section 529 of the Internal Revenue Code | ||
administered by the State, an amount equal to the | ||
contribution component of the nonqualified withdrawal | ||
or refund that was previously deducted from base
| ||
income under subsection (a)(2)(Y) of this Section, and | ||
(2) in the case of a nonqualified withdrawal or refund | ||
from a qualified ABLE program under Section 529A of | ||
the Internal Revenue Code administered by the State | ||
that is not used for qualified disability expenses, an | ||
amount equal to the contribution component of the | ||
nonqualified withdrawal or refund that was previously | ||
deducted from base income under subsection (a)(2)(HH) | ||
of this Section; | ||
(D-23) An amount equal to the credit allowable to | ||
the taxpayer under Section 218(a) of this Act, | ||
determined without regard to Section 218(c) of this | ||
Act; | ||
(D-24) For taxable years ending on or after | ||
December 31, 2017, an amount equal to the deduction | ||
allowed under Section 199 of the Internal Revenue Code |
for the taxable year; | ||
(D-25) In the case of a resident, an amount equal | ||
to the amount of tax for which a credit is allowed | ||
pursuant to Section 201(p)(7) of this Act; | ||
and by deducting from the total so obtained the
sum of the | ||
following amounts: | ||
(E) For taxable years ending before December 31, | ||
2001,
any amount included in such total in respect of | ||
any compensation
(including but not limited to any | ||
compensation paid or accrued to a
serviceman while a | ||
prisoner of war or missing in action) paid to a | ||
resident
by reason of being on active duty in the Armed | ||
Forces of the United States
and in respect of any | ||
compensation paid or accrued to a resident who as a
| ||
governmental employee was a prisoner of war or missing | ||
in action, and in
respect of any compensation paid to a | ||
resident in 1971 or thereafter for
annual training | ||
performed pursuant to Sections 502 and 503, Title 32,
| ||
United States Code as a member of the Illinois | ||
National Guard or, beginning with taxable years ending | ||
on or after December 31, 2007, the National Guard of | ||
any other state.
For taxable years ending on or after | ||
December 31, 2001, any amount included in
such total | ||
in respect of any compensation (including but not | ||
limited to any
compensation paid or accrued to a | ||
serviceman while a prisoner of war or missing
in |
action) paid to a resident by reason of being a member | ||
of any component of
the Armed Forces of the United | ||
States and in respect of any compensation paid
or | ||
accrued to a resident who as a governmental employee | ||
was a prisoner of war
or missing in action, and in | ||
respect of any compensation paid to a resident in
2001 | ||
or thereafter by reason of being a member of the | ||
Illinois National Guard or, beginning with taxable | ||
years ending on or after December 31, 2007, the | ||
National Guard of any other state.
The provisions of | ||
this subparagraph (E) are exempt
from the provisions | ||
of Section 250; | ||
(F) An amount equal to all amounts included in | ||
such total pursuant
to the provisions of Sections | ||
402(a), 402(c), 403(a), 403(b), 406(a), 407(a),
and | ||
408 of the Internal Revenue Code, or included in such | ||
total as
distributions under the provisions of any | ||
retirement or disability plan for
employees of any | ||
governmental agency or unit, or retirement payments to
| ||
retired partners, which payments are excluded in | ||
computing net earnings
from self employment by Section | ||
1402 of the Internal Revenue Code and
regulations | ||
adopted pursuant thereto; | ||
(G) The valuation limitation amount; | ||
(H) An amount equal to the amount of any tax | ||
imposed by this Act
which was refunded to the taxpayer |
and included in such total for the
taxable year; | ||
(I) An amount equal to all amounts included in | ||
such total pursuant
to the provisions of Section 111 | ||
of the Internal Revenue Code as a
recovery of items | ||
previously deducted from adjusted gross income in the
| ||
computation of taxable income; | ||
(J) An amount equal to those dividends included in | ||
such total which were
paid by a corporation which | ||
conducts business operations in a River Edge | ||
Redevelopment Zone or zones created under the River | ||
Edge Redevelopment Zone Act, and conducts
| ||
substantially all of its operations in a River Edge | ||
Redevelopment Zone or zones. This subparagraph (J) is | ||
exempt from the provisions of Section 250; | ||
(K) An amount equal to those dividends included in | ||
such total that
were paid by a corporation that | ||
conducts business operations in a federally
designated | ||
Foreign Trade Zone or Sub-Zone and that is designated | ||
a High Impact
Business located in Illinois; provided | ||
that dividends eligible for the
deduction provided in | ||
subparagraph (J) of paragraph (2) of this subsection
| ||
shall not be eligible for the deduction provided under | ||
this subparagraph
(K); | ||
(L) For taxable years ending after December 31, | ||
1983, an amount equal to
all social security benefits | ||
and railroad retirement benefits included in
such |
total pursuant to Sections 72(r) and 86 of the | ||
Internal Revenue Code; | ||
(M) With the exception of any amounts subtracted | ||
under subparagraph
(N), an amount equal to the sum of | ||
all amounts disallowed as
deductions by (i) Sections | ||
171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||
and all amounts of expenses allocable
to interest and | ||
disallowed as deductions by Section 265(a)(1) of the | ||
Internal
Revenue Code;
and (ii) for taxable years
| ||
ending on or after August 13, 1999, Sections | ||
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||
Internal Revenue Code, plus, for taxable years ending | ||
on or after December 31, 2011, Section 45G(e)(3) of | ||
the Internal Revenue Code and, for taxable years | ||
ending on or after December 31, 2008, any amount | ||
included in gross income under Section 87 of the | ||
Internal Revenue Code; the provisions of this
| ||
subparagraph are exempt from the provisions of Section | ||
250; | ||
(N) An amount equal to all amounts included in | ||
such total which are
exempt from taxation by this | ||
State either by reason of its statutes or
Constitution
| ||
or by reason of the Constitution, treaties or statutes | ||
of the United States;
provided that, in the case of any | ||
statute of this State that exempts income
derived from | ||
bonds or other obligations from the tax imposed under |
this Act,
the amount exempted shall be the interest | ||
net of bond premium amortization; | ||
(O) An amount equal to any contribution made to a | ||
job training
project established pursuant to the Tax | ||
Increment Allocation Redevelopment Act; | ||
(P) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code or of any itemized deduction | ||
taken from adjusted gross income in the computation of | ||
taxable income for restoration of substantial amounts | ||
held under claim of right for the taxable year; | ||
(Q) An amount equal to any amounts included in | ||
such total, received by
the taxpayer as an | ||
acceleration in the payment of life, endowment or | ||
annuity
benefits in advance of the time they would | ||
otherwise be payable as an indemnity
for a terminal | ||
illness; | ||
(R) An amount equal to the amount of any federal or | ||
State bonus paid
to veterans of the Persian Gulf War; | ||
(S) An amount, to the extent included in adjusted | ||
gross income, equal
to the amount of a contribution | ||
made in the taxable year on behalf of the
taxpayer to a | ||
medical care savings account established under the | ||
Medical Care
Savings Account Act or the Medical Care |
Savings Account Act of 2000 to the
extent the | ||
contribution is accepted by the account
administrator | ||
as provided in that Act; | ||
(T) An amount, to the extent included in adjusted | ||
gross income, equal to
the amount of interest earned | ||
in the taxable year on a medical care savings
account | ||
established under the Medical Care Savings Account Act | ||
or the Medical
Care Savings Account Act of 2000 on | ||
behalf of the
taxpayer, other than interest added | ||
pursuant to item (D-5) of this paragraph
(2); | ||
(U) For one taxable year beginning on or after | ||
January 1,
1994, an
amount equal to the total amount of | ||
tax imposed and paid under subsections (a)
and (b) of | ||
Section 201 of this Act on grant amounts received by | ||
the taxpayer
under the Nursing Home Grant Assistance | ||
Act during the taxpayer's taxable years
1992 and 1993; | ||
(V) Beginning with tax years ending on or after | ||
December 31, 1995 and
ending with tax years ending on | ||
or before December 31, 2004, an amount equal to
the | ||
amount paid by a taxpayer who is a
self-employed | ||
taxpayer, a partner of a partnership, or a
shareholder | ||
in a Subchapter S corporation for health insurance or | ||
long-term
care insurance for that taxpayer or that | ||
taxpayer's spouse or dependents, to
the extent that | ||
the amount paid for that health insurance or long-term | ||
care
insurance may be deducted under Section 213 of |
the Internal Revenue Code, has not been deducted on | ||
the federal income tax return of the taxpayer,
and | ||
does not exceed the taxable income attributable to | ||
that taxpayer's income,
self-employment income, or | ||
Subchapter S corporation income; except that no
| ||
deduction shall be allowed under this item (V) if the | ||
taxpayer is eligible to
participate in any health | ||
insurance or long-term care insurance plan of an
| ||
employer of the taxpayer or the taxpayer's
spouse. The | ||
amount of the health insurance and long-term care | ||
insurance
subtracted under this item (V) shall be | ||
determined by multiplying total
health insurance and | ||
long-term care insurance premiums paid by the taxpayer
| ||
times a number that represents the fractional | ||
percentage of eligible medical
expenses under Section | ||
213 of the Internal Revenue Code of 1986 not actually
| ||
deducted on the taxpayer's federal income tax return; | ||
(W) For taxable years beginning on or after | ||
January 1, 1998,
all amounts included in the | ||
taxpayer's federal gross income
in the taxable year | ||
from amounts converted from a regular IRA to a Roth | ||
IRA.
This paragraph is exempt from the provisions of | ||
Section
250; | ||
(X) For taxable year 1999 and thereafter, an | ||
amount equal to the
amount of any (i) distributions, | ||
to the extent includible in gross income for
federal |
income tax purposes, made to the taxpayer because of | ||
his or her status
as a victim of persecution for racial | ||
or religious reasons by Nazi Germany or
any other Axis | ||
regime or as an heir of the victim and (ii) items
of | ||
income, to the extent
includible in gross income for | ||
federal income tax purposes, attributable to,
derived | ||
from or in any way related to assets stolen from, | ||
hidden from, or
otherwise lost to a victim of
| ||
persecution for racial or religious reasons by Nazi | ||
Germany or any other Axis
regime immediately prior to, | ||
during, and immediately after World War II,
including, | ||
but
not limited to, interest on the proceeds | ||
receivable as insurance
under policies issued to a | ||
victim of persecution for racial or religious
reasons
| ||
by Nazi Germany or any other Axis regime by European | ||
insurance companies
immediately prior to and during | ||
World War II;
provided, however, this subtraction from | ||
federal adjusted gross income does not
apply to assets | ||
acquired with such assets or with the proceeds from | ||
the sale of
such assets; provided, further, this | ||
paragraph shall only apply to a taxpayer
who was the | ||
first recipient of such assets after their recovery | ||
and who is a
victim of persecution for racial or | ||
religious reasons
by Nazi Germany or any other Axis | ||
regime or as an heir of the victim. The
amount of and | ||
the eligibility for any public assistance, benefit, or
|
similar entitlement is not affected by the inclusion | ||
of items (i) and (ii) of
this paragraph in gross income | ||
for federal income tax purposes.
This paragraph is | ||
exempt from the provisions of Section 250; | ||
(Y) For taxable years beginning on or after | ||
January 1, 2002
and ending
on or before December 31, | ||
2004, moneys contributed in the taxable year to a | ||
College Savings Pool account under
Section 16.5 of the | ||
State Treasurer Act, except that amounts excluded from
| ||
gross income under Section 529(c)(3)(C)(i) of the | ||
Internal Revenue Code
shall not be considered moneys | ||
contributed under this subparagraph (Y). For taxable | ||
years beginning on or after January 1, 2005, a maximum | ||
of $10,000
contributed
in the
taxable year to (i) a | ||
College Savings Pool account under Section 16.5 of the
| ||
State
Treasurer Act or (ii) the Illinois Prepaid | ||
Tuition Trust Fund,
except that
amounts excluded from | ||
gross income under Section 529(c)(3)(C)(i) of the
| ||
Internal
Revenue Code shall not be considered moneys | ||
contributed under this subparagraph
(Y). For purposes | ||
of this subparagraph, contributions made by an | ||
employer on behalf of an employee, or matching | ||
contributions made by an employee, shall be treated as | ||
made by the employee. This
subparagraph (Y) is exempt | ||
from the provisions of Section 250; | ||
(Z) For taxable years 2001 and thereafter, for the |
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where: | ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not | ||
including the bonus depreciation deduction; | ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied | ||
by 0.429); | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by |
1.0; | ||
(iii) for property on which a bonus | ||
depreciation deduction of 100% of the adjusted | ||
basis was taken in a taxable year ending on or | ||
after December 31, 2021, "x" equals the | ||
depreciation deduction that would be allowed | ||
on that property if the taxpayer had made the | ||
election under Section 168(k)(7) of the | ||
Internal Revenue Code to not claim bonus | ||
depreciation on that property; and | ||
(iv) for property on which a bonus | ||
depreciation deduction of a percentage other | ||
than 30%, 50% or 100% of the adjusted basis | ||
was taken in a taxable year ending on or after | ||
December 31, 2021, "x" equals "y" multiplied | ||
by 100 times the percentage bonus depreciation | ||
on the property (that is, 100(bonus%)) and | ||
then divided by 100 times 1 minus the | ||
percentage bonus depreciation on the property | ||
(that is, 100(1–bonus%)). | ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This |
subparagraph (Z) is exempt from the provisions of | ||
Section 250; | ||
(AA) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of
property for which the | ||
taxpayer was required in any taxable year to make an
| ||
addition modification under subparagraph (D-15), then | ||
an amount equal to that
addition modification.
| ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which a | ||
subtraction is allowed with respect to that property | ||
under subparagraph (Z) and for which the taxpayer was | ||
required in any taxable year to make an addition | ||
modification under subparagraph (D-15), then an amount | ||
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction | ||
under this subparagraph
only once with respect to any | ||
one piece of property. | ||
This subparagraph (AA) is exempt from the | ||
provisions of Section 250; | ||
(BB) Any amount included in adjusted gross income, | ||
other
than
salary,
received by a driver in a | ||
ridesharing arrangement using a motor vehicle; | ||
(CC) The amount of (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction | ||
with a taxpayer that is required to make an addition |
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of that addition modification, and
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer | ||
that is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of that | ||
addition modification. This subparagraph (CC) is | ||
exempt from the provisions of Section 250; | ||
(DD) An amount equal to the interest income taken | ||
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but | ||
for the fact that the foreign person's business | ||
activity outside the United States is 80% or more of | ||
that person's total business activity and (ii) for | ||
taxable years ending on or after December 31, 2008, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or |
she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(a)(2)(D-17) for interest paid, accrued, or | ||
incurred, directly or indirectly, to the same person. | ||
This subparagraph (DD) is exempt from the provisions | ||
of Section 250; | ||
(EE) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but | ||
for the fact that the foreign person's business | ||
activity outside the United States is 80% or more of | ||
that person's total business activity and (ii) for | ||
taxable years ending on or after December 31, 2008, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(a)(2)(D-18) for intangible expenses and costs |
paid, accrued, or incurred, directly or indirectly, to | ||
the same foreign person. This subparagraph (EE) is | ||
exempt from the provisions of Section 250; | ||
(FF) An amount equal to any amount awarded to the | ||
taxpayer during the taxable year by the Court of | ||
Claims under subsection (c) of Section 8 of the Court | ||
of Claims Act for time unjustly served in a State | ||
prison. This subparagraph (FF) is exempt from the | ||
provisions of Section 250; | ||
(GG) For taxable years ending on or after December | ||
31, 2011, in the case of a taxpayer who was required to | ||
add back any insurance premiums under Section | ||
203(a)(2)(D-19), such taxpayer may elect to subtract | ||
that part of a reimbursement received from the | ||
insurance company equal to the amount of the expense | ||
or loss (including expenses incurred by the insurance | ||
company) that would have been taken into account as a | ||
deduction for federal income tax purposes if the | ||
expense or loss had been uninsured. If a taxpayer | ||
makes the election provided for by this subparagraph | ||
(GG), the insurer to which the premiums were paid must | ||
add back to income the amount subtracted by the | ||
taxpayer pursuant to this subparagraph (GG). This | ||
subparagraph (GG) is exempt from the provisions of | ||
Section 250; | ||
(HH) For taxable years beginning on or after |
January 1, 2018 and prior to January 1, 2028, a maximum | ||
of $10,000 contributed in the taxable year to a | ||
qualified ABLE account under Section 16.6 of the State | ||
Treasurer Act, except that amounts excluded from gross | ||
income under Section 529(c)(3)(C)(i) or Section | ||
529A(c)(1)(C) of the Internal Revenue Code shall not | ||
be considered moneys contributed under this | ||
subparagraph (HH). For purposes of this subparagraph | ||
(HH), contributions made by an employer on behalf of | ||
an employee, or matching contributions made by an | ||
employee, shall be treated as made by the employee; | ||
and | ||
(II) For taxable years that begin on or after | ||
January 1, 2021 and begin before January 1, 2026, the | ||
amount that is included in the taxpayer's federal | ||
adjusted gross income pursuant to Section 61 of the | ||
Internal Revenue Code as discharge of indebtedness | ||
attributable to student loan forgiveness and that is | ||
not excluded from the taxpayer's federal adjusted | ||
gross income pursuant to paragraph (5) of subsection | ||
(f) of Section 108 of the Internal Revenue Code ; and . | ||
(JJ) To the extent includible in gross income for | ||
federal income tax purposes, any amount awarded or | ||
paid to the taxpayer as a result of a judgment or | ||
settlement for fertility fraud as provided in Section | ||
15 of the Illinois Fertility Fraud Act, donor |
fertility fraud as provided in Section 20 of the | ||
Illinois Fertility Fraud Act, or similar action in | ||
another state. | ||
(b) Corporations. | ||
(1) In general. In the case of a corporation, base | ||
income means an
amount equal to the taxpayer's taxable | ||
income for the taxable year as
modified by paragraph (2). | ||
(2) Modifications. The taxable income referred to in | ||
paragraph (1)
shall be modified by adding thereto the sum | ||
of the following amounts: | ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer
as interest and all distributions | ||
received from regulated investment
companies during | ||
the taxable year to the extent excluded from gross
| ||
income in the computation of taxable income; | ||
(B) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income in | ||
the computation of taxable income
for the taxable | ||
year; | ||
(C) In the case of a regulated investment company, | ||
an amount equal to
the excess of (i) the net long-term | ||
capital gain for the taxable year, over
(ii) the | ||
amount of the capital gain dividends designated as | ||
such in accordance
with Section 852(b)(3)(C) of the | ||
Internal Revenue Code and any amount
designated under |
Section 852(b)(3)(D) of the Internal Revenue Code,
| ||
attributable to the taxable year (this amendatory Act | ||
of 1995
(Public Act 89-89) is declarative of existing | ||
law and is not a new
enactment); | ||
(D) The amount of any net operating loss deduction | ||
taken in arriving
at taxable income, other than a net | ||
operating loss carried forward from a
taxable year | ||
ending prior to December 31, 1986; | ||
(E) For taxable years in which a net operating | ||
loss carryback or
carryforward from a taxable year | ||
ending prior to December 31, 1986 is an
element of | ||
taxable income under paragraph (1) of subsection (e) | ||
or
subparagraph (E) of paragraph (2) of subsection | ||
(e), the amount by which
addition modifications other | ||
than those provided by this subparagraph (E)
exceeded | ||
subtraction modifications in such earlier taxable | ||
year, with the
following limitations applied in the | ||
order that they are listed: | ||
(i) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall be reduced by the amount | ||
of addition
modification under this subparagraph | ||
(E) which related to that net operating
loss and | ||
which was taken into account in calculating the | ||
base income of an
earlier taxable year, and |
(ii) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall not exceed the amount of | ||
such carryback or
carryforward; | ||
For taxable years in which there is a net | ||
operating loss carryback or
carryforward from more | ||
than one other taxable year ending prior to December
| ||
31, 1986, the addition modification provided in this | ||
subparagraph (E) shall
be the sum of the amounts | ||
computed independently under the preceding
provisions | ||
of this subparagraph (E) for each such taxable year; | ||
(E-5) For taxable years ending after December 31, | ||
1997, an
amount equal to any eligible remediation | ||
costs that the corporation
deducted in computing | ||
adjusted gross income and for which the
corporation | ||
claims a credit under subsection (l) of Section 201; | ||
(E-10) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of | ||
the Internal Revenue Code; | ||
(E-11) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of property for which the | ||
taxpayer was required in any taxable year to
make an | ||
addition modification under subparagraph (E-10), then |
an amount equal
to the aggregate amount of the | ||
deductions taken in all taxable
years under | ||
subparagraph (T) with respect to that property. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which a | ||
subtraction is allowed with respect to that property | ||
under subparagraph (T) and for which the taxpayer was | ||
allowed in any taxable year to make a subtraction | ||
modification under subparagraph (T), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property; | ||
(E-12) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact the foreign person's business activity outside | ||
the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the |
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income pursuant to Sections 951 | ||
through 964 of the Internal Revenue Code and amounts | ||
included in gross income under Section 78 of the | ||
Internal Revenue Code) with respect to the stock of | ||
the same person to whom the interest was paid, | ||
accrued, or incurred.
| ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: |
(a) the person, during the same taxable | ||
year, paid, accrued, or incurred, the interest | ||
to a person that is not a related member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
person did not have as a principal purpose the | ||
avoidance of Illinois income tax, and is paid | ||
pursuant to a contract or agreement that | ||
reflects an arm's-length interest rate and | ||
terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract | ||
or agreement entered into at arm's-length rates | ||
and terms and the principal purpose for the | ||
payment is not federal or Illinois tax avoidance; | ||
or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence that the adjustments are unreasonable; or | ||
if the taxpayer and the Director agree in writing | ||
to the application or use of an alternative method | ||
of apportionment under Section 304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment |
otherwise allowed under Section 404 of this Act | ||
for any tax year beginning after the effective | ||
date of this amendment provided such adjustment is | ||
made pursuant to regulation adopted by the | ||
Department and such regulations provide methods | ||
and standards by which the Department will utilize | ||
its authority under Section 404 of this Act;
| ||
(E-13) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary |
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income pursuant to Sections 951 through 964 of the | ||
Internal Revenue Code and amounts included in gross | ||
income under Section 78 of the Internal Revenue Code) | ||
with respect to the stock of the same person to whom | ||
the intangible expenses and costs were directly or | ||
indirectly paid, incurred, or accrued. The preceding | ||
sentence shall not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(b)(2)(E-12) of | ||
this Act.
As used in this subparagraph, the term | ||
"intangible expenses and costs" includes (1) expenses, | ||
losses, and costs for, or related to, the direct or | ||
indirect acquisition, use, maintenance or management, | ||
ownership, sale, exchange, or any other disposition of | ||
intangible property; (2) losses incurred, directly or | ||
indirectly, from factoring transactions or discounting | ||
transactions; (3) royalty, patent, technical, and | ||
copyright fees; (4) licensing fees; and (5) other | ||
similar expenses and costs.
For purposes of this | ||
subparagraph, "intangible property" includes patents, | ||
patent applications, trade names, trademarks, service | ||
marks, copyrights, mask works, trade secrets, and | ||
similar types of intangible assets. |
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the person during the same taxable | ||
year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the person did not have as a | ||
principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or |
indirectly, from a transaction with a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence, that the adjustments are unreasonable; | ||
or if the taxpayer and the Director agree in | ||
writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act | ||
for any tax year beginning after the effective | ||
date of this amendment provided such adjustment is | ||
made pursuant to regulation adopted by the | ||
Department and such regulations provide methods | ||
and standards by which the Department will utilize | ||
its authority under Section 404 of this Act;
| ||
(E-14) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed | ||
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business |
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the | ||
stock of the same person to whom the premiums and costs | ||
were directly or indirectly paid, incurred, or | ||
accrued. The preceding sentence does not apply to the | ||
extent that the same dividends caused a reduction to | ||
the addition modification required under Section | ||
203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this | ||
Act;
| ||
(E-15) For taxable years beginning after December | ||
31, 2008, any deduction for dividends paid by a | ||
captive real estate investment trust that is allowed | ||
to a real estate investment trust under Section | ||
857(b)(2)(B) of the Internal Revenue Code for | ||
dividends paid; | ||
(E-16) An amount equal to the credit allowable to | ||
the taxpayer under Section 218(a) of this Act, | ||
determined without regard to Section 218(c) of this |
Act; | ||
(E-17) For taxable years ending on or after | ||
December 31, 2017, an amount equal to the deduction | ||
allowed under Section 199 of the Internal Revenue Code | ||
for the taxable year; | ||
(E-18) for taxable years beginning after December | ||
31, 2018, an amount equal to the deduction allowed | ||
under Section 250(a)(1)(A) of the Internal Revenue | ||
Code for the taxable year; | ||
(E-19) for taxable years ending on or after June | ||
30, 2021, an amount equal to the deduction allowed | ||
under Section 250(a)(1)(B)(i) of the Internal Revenue | ||
Code for the taxable year; | ||
(E-20) for taxable years ending on or after June | ||
30, 2021, an amount equal to the deduction allowed | ||
under Sections 243(e) and 245A(a) of the Internal | ||
Revenue Code for the taxable year. | ||
and by deducting from the total so obtained the sum of the | ||
following
amounts: | ||
(F) An amount equal to the amount of any tax | ||
imposed by this Act
which was refunded to the taxpayer | ||
and included in such total for the
taxable year; | ||
(G) An amount equal to any amount included in such | ||
total under
Section 78 of the Internal Revenue Code; | ||
(H) In the case of a regulated investment company, | ||
an amount equal
to the amount of exempt interest |
dividends as defined in subsection (b)(5) of Section | ||
852 of the Internal Revenue Code, paid to shareholders
| ||
for the taxable year; | ||
(I) With the exception of any amounts subtracted | ||
under subparagraph
(J),
an amount equal to the sum of | ||
all amounts disallowed as
deductions by (i) Sections | ||
171(a)(2) and 265(a)(2) and amounts disallowed as
| ||
interest expense by Section 291(a)(3) of the Internal | ||
Revenue Code, and all amounts of expenses allocable to | ||
interest and
disallowed as deductions by Section | ||
265(a)(1) of the Internal Revenue Code;
and (ii) for | ||
taxable years
ending on or after August 13, 1999, | ||
Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||
832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||
for tax years ending on or after December 31, 2011, | ||
amounts disallowed as deductions by Section 45G(e)(3) | ||
of the Internal Revenue Code and, for taxable years | ||
ending on or after December 31, 2008, any amount | ||
included in gross income under Section 87 of the | ||
Internal Revenue Code and the policyholders' share of | ||
tax-exempt interest of a life insurance company under | ||
Section 807(a)(2)(B) of the Internal Revenue Code (in | ||
the case of a life insurance company with gross income | ||
from a decrease in reserves for the tax year) or | ||
Section 807(b)(1)(B) of the Internal Revenue Code (in | ||
the case of a life insurance company allowed a |
deduction for an increase in reserves for the tax | ||
year); the
provisions of this
subparagraph are exempt | ||
from the provisions of Section 250; | ||
(J) An amount equal to all amounts included in | ||
such total which are
exempt from taxation by this | ||
State either by reason of its statutes or
Constitution
| ||
or by reason of the Constitution, treaties or statutes | ||
of the United States;
provided that, in the case of any | ||
statute of this State that exempts income
derived from | ||
bonds or other obligations from the tax imposed under | ||
this Act,
the amount exempted shall be the interest | ||
net of bond premium amortization; | ||
(K) An amount equal to those dividends included in | ||
such total
which were paid by a corporation which | ||
conducts
business operations in a River Edge | ||
Redevelopment Zone or zones created under the River | ||
Edge Redevelopment Zone Act and conducts substantially | ||
all of its
operations in a River Edge Redevelopment | ||
Zone or zones. This subparagraph (K) is exempt from | ||
the provisions of Section 250; | ||
(L) An amount equal to those dividends included in | ||
such total that
were paid by a corporation that | ||
conducts business operations in a federally
designated | ||
Foreign Trade Zone or Sub-Zone and that is designated | ||
a High Impact
Business located in Illinois; provided | ||
that dividends eligible for the
deduction provided in |
subparagraph (K) of paragraph 2 of this subsection
| ||
shall not be eligible for the deduction provided under | ||
this subparagraph
(L); | ||
(M) For any taxpayer that is a financial | ||
organization within the meaning
of Section 304(c) of | ||
this Act, an amount included in such total as interest
| ||
income from a loan or loans made by such taxpayer to a | ||
borrower, to the extent
that such a loan is secured by | ||
property which is eligible for the River Edge | ||
Redevelopment Zone Investment Credit. To determine the | ||
portion of a loan or loans that is
secured by property | ||
eligible for a Section 201(f) investment
credit to the | ||
borrower, the entire principal amount of the loan or | ||
loans
between the taxpayer and the borrower should be | ||
divided into the basis of the
Section 201(f) | ||
investment credit property which secures the
loan or | ||
loans, using for this purpose the original basis of | ||
such property on
the date that it was placed in service | ||
in the River Edge Redevelopment Zone. The subtraction | ||
modification available to the taxpayer in any
year | ||
under this subsection shall be that portion of the | ||
total interest paid
by the borrower with respect to | ||
such loan attributable to the eligible
property as | ||
calculated under the previous sentence. This | ||
subparagraph (M) is exempt from the provisions of | ||
Section 250; |
(M-1) For any taxpayer that is a financial | ||
organization within the
meaning of Section 304(c) of | ||
this Act, an amount included in such total as
interest | ||
income from a loan or loans made by such taxpayer to a | ||
borrower,
to the extent that such a loan is secured by | ||
property which is eligible for
the High Impact | ||
Business Investment Credit. To determine the portion | ||
of a
loan or loans that is secured by property eligible | ||
for a Section 201(h) investment credit to the | ||
borrower, the entire principal amount of
the loan or | ||
loans between the taxpayer and the borrower should be | ||
divided into
the basis of the Section 201(h) | ||
investment credit property which
secures the loan or | ||
loans, using for this purpose the original basis of | ||
such
property on the date that it was placed in service | ||
in a federally designated
Foreign Trade Zone or | ||
Sub-Zone located in Illinois. No taxpayer that is
| ||
eligible for the deduction provided in subparagraph | ||
(M) of paragraph (2) of
this subsection shall be | ||
eligible for the deduction provided under this
| ||
subparagraph (M-1). The subtraction modification | ||
available to taxpayers in
any year under this | ||
subsection shall be that portion of the total interest
| ||
paid by the borrower with respect to such loan | ||
attributable to the eligible
property as calculated | ||
under the previous sentence; |
(N) Two times any contribution made during the | ||
taxable year to a
designated zone organization to the | ||
extent that the contribution (i)
qualifies as a | ||
charitable contribution under subsection (c) of | ||
Section 170
of the Internal Revenue Code and (ii) | ||
must, by its terms, be used for a
project approved by | ||
the Department of Commerce and Economic Opportunity | ||
under Section 11 of the Illinois Enterprise Zone Act | ||
or under Section 10-10 of the River Edge Redevelopment | ||
Zone Act. This subparagraph (N) is exempt from the | ||
provisions of Section 250; | ||
(O) An amount equal to: (i) 85% for taxable years | ||
ending on or before
December 31, 1992, or, a | ||
percentage equal to the percentage allowable under
| ||
Section 243(a)(1) of the Internal Revenue Code of 1986 | ||
for taxable years ending
after December 31, 1992, of | ||
the amount by which dividends included in taxable
| ||
income and received from a corporation that is not | ||
created or organized under
the laws of the United | ||
States or any state or political subdivision thereof,
| ||
including, for taxable years ending on or after | ||
December 31, 1988, dividends
received or deemed | ||
received or paid or deemed paid under Sections 951 | ||
through
965 of the Internal Revenue Code, exceed the | ||
amount of the modification
provided under subparagraph | ||
(G) of paragraph (2) of this subsection (b) which
is |
related to such dividends, and including, for taxable | ||
years ending on or after December 31, 2008, dividends | ||
received from a captive real estate investment trust; | ||
plus (ii) 100% of the amount by which dividends,
| ||
included in taxable income and received, including, | ||
for taxable years ending on
or after December 31, | ||
1988, dividends received or deemed received or paid or
| ||
deemed paid under Sections 951 through 964 of the | ||
Internal Revenue Code and including, for taxable years | ||
ending on or after December 31, 2008, dividends | ||
received from a captive real estate investment trust, | ||
from
any such corporation specified in clause (i) that | ||
would but for the provisions
of Section 1504(b)(3) of | ||
the Internal Revenue Code be treated as a member of
the | ||
affiliated group which includes the dividend | ||
recipient, exceed the amount
of the modification | ||
provided under subparagraph (G) of paragraph (2) of | ||
this
subsection (b) which is related to such | ||
dividends. For taxable years ending on or after June | ||
30, 2021, (i) for purposes of this subparagraph, the | ||
term "dividend" does not include any amount treated as | ||
a dividend under Section 1248 of the Internal Revenue | ||
Code, and (ii) this subparagraph shall not apply to | ||
dividends for which a deduction is allowed under | ||
Section 245(a) of the Internal Revenue Code. This | ||
subparagraph (O) is exempt from the provisions of |
Section 250 of this Act; | ||
(P) An amount equal to any contribution made to a | ||
job training project
established pursuant to the Tax | ||
Increment Allocation Redevelopment Act; | ||
(Q) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code; | ||
(R) On and after July 20, 1999, in the case of an | ||
attorney-in-fact with respect to whom an
interinsurer | ||
or a reciprocal insurer has made the election under | ||
Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||
835, an amount equal to the excess, if
any, of the | ||
amounts paid or incurred by that interinsurer or | ||
reciprocal insurer
in the taxable year to the | ||
attorney-in-fact over the deduction allowed to that
| ||
interinsurer or reciprocal insurer with respect to the | ||
attorney-in-fact under
Section 835(b) of the Internal | ||
Revenue Code for the taxable year; the provisions of | ||
this subparagraph are exempt from the provisions of | ||
Section 250; | ||
(S) For taxable years ending on or after December | ||
31, 1997, in the
case of a Subchapter
S corporation, an | ||
amount equal to all amounts of income allocable to a
| ||
shareholder subject to the Personal Property Tax |
Replacement Income Tax imposed
by subsections (c) and | ||
(d) of Section 201 of this Act, including amounts
| ||
allocable to organizations exempt from federal income | ||
tax by reason of Section
501(a) of the Internal | ||
Revenue Code. This subparagraph (S) is exempt from
the | ||
provisions of Section 250; | ||
(T) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where: | ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not | ||
including the bonus depreciation deduction; | ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus |
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied | ||
by 0.429); | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0; | ||
(iii) for property on which a bonus | ||
depreciation deduction of 100% of the adjusted | ||
basis was taken in a taxable year ending on or | ||
after December 31, 2021, "x" equals the | ||
depreciation deduction that would be allowed | ||
on that property if the taxpayer had made the | ||
election under Section 168(k)(7) of the | ||
Internal Revenue Code to not claim bonus | ||
depreciation on that property; and | ||
(iv) for property on which a bonus | ||
depreciation deduction of a percentage other | ||
than 30%, 50% or 100% of the adjusted basis | ||
was taken in a taxable year ending on or after | ||
December 31, 2021, "x" equals "y" multiplied | ||
by 100 times the percentage bonus depreciation | ||
on the property (that is, 100(bonus%)) and | ||
then divided by 100 times 1 minus the | ||
percentage bonus depreciation on the property |
(that is, 100(1–bonus%)). | ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (T) is exempt from the provisions of | ||
Section 250; | ||
(U) If the taxpayer sells, transfers, abandons, or | ||
otherwise disposes of
property for which the taxpayer | ||
was required in any taxable year to make an
addition | ||
modification under subparagraph (E-10), then an amount | ||
equal to that
addition modification. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which a | ||
subtraction is allowed with respect to that property | ||
under subparagraph (T) and for which the taxpayer was | ||
required in any taxable year to make an addition | ||
modification under subparagraph (E-10), then an amount | ||
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction | ||
under this subparagraph
only once with respect to any | ||
one piece of property. | ||
This subparagraph (U) is exempt from the | ||
provisions of Section 250; |
(V) The amount of: (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction | ||
with a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of such addition modification,
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer | ||
that is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of such | ||
addition modification, and (iii) any insurance premium | ||
income (net of deductions allocable thereto) taken | ||
into account for the taxable year with respect to a | ||
transaction with a taxpayer that is required to make | ||
an addition modification with respect to such | ||
transaction under Section 203(a)(2)(D-19), Section | ||
203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||
203(d)(2)(D-9), but not to exceed the amount of that | ||
addition modification. This subparagraph (V) is exempt | ||
from the provisions of Section 250;
| ||
(W) An amount equal to the interest income taken |
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but | ||
for the fact that the foreign person's business | ||
activity outside the United States is 80% or more of | ||
that person's total business activity and (ii) for | ||
taxable years ending on or after December 31, 2008, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(b)(2)(E-12) for interest paid, accrued, or | ||
incurred, directly or indirectly, to the same person. | ||
This subparagraph (W) is exempt from the provisions of | ||
Section 250;
| ||
(X) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but | ||
for the fact that the foreign person's business |
activity outside the United States is 80% or more of | ||
that person's total business activity and (ii) for | ||
taxable years ending on or after December 31, 2008, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(b)(2)(E-13) for intangible expenses and costs | ||
paid, accrued, or incurred, directly or indirectly, to | ||
the same foreign person. This subparagraph (X) is | ||
exempt from the provisions of Section 250;
| ||
(Y) For taxable years ending on or after December | ||
31, 2011, in the case of a taxpayer who was required to | ||
add back any insurance premiums under Section | ||
203(b)(2)(E-14), such taxpayer may elect to subtract | ||
that part of a reimbursement received from the | ||
insurance company equal to the amount of the expense | ||
or loss (including expenses incurred by the insurance | ||
company) that would have been taken into account as a | ||
deduction for federal income tax purposes if the | ||
expense or loss had been uninsured. If a taxpayer | ||
makes the election provided for by this subparagraph |
(Y), the insurer to which the premiums were paid must | ||
add back to income the amount subtracted by the | ||
taxpayer pursuant to this subparagraph (Y). This | ||
subparagraph (Y) is exempt from the provisions of | ||
Section 250; and | ||
(Z) The difference between the nondeductible | ||
controlled foreign corporation dividends under Section | ||
965(e)(3) of the Internal Revenue Code over the | ||
taxable income of the taxpayer, computed without | ||
regard to Section 965(e)(2)(A) of the Internal Revenue | ||
Code, and without regard to any net operating loss | ||
deduction. This subparagraph (Z) is exempt from the | ||
provisions of Section 250. | ||
(3) Special rule. For purposes of paragraph (2)(A), | ||
"gross income"
in the case of a life insurance company, | ||
for tax years ending on and after
December 31, 1994,
and | ||
prior to December 31, 2011, shall mean the gross | ||
investment income for the taxable year and, for tax years | ||
ending on or after December 31, 2011, shall mean all | ||
amounts included in life insurance gross income under | ||
Section 803(a)(3) of the Internal Revenue Code. | ||
(c) Trusts and estates. | ||
(1) In general. In the case of a trust or estate, base | ||
income means
an amount equal to the taxpayer's taxable | ||
income for the taxable year as
modified by paragraph (2). |
(2) Modifications. Subject to the provisions of | ||
paragraph (3), the
taxable income referred to in paragraph | ||
(1) shall be modified by adding
thereto the sum of the | ||
following amounts: | ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer
as interest or dividends during the | ||
taxable year to the extent excluded
from gross income | ||
in the computation of taxable income; | ||
(B) In the case of (i) an estate, $600; (ii) a | ||
trust which, under
its governing instrument, is | ||
required to distribute all of its income
currently, | ||
$300; and (iii) any other trust, $100, but in each such | ||
case,
only to the extent such amount was deducted in | ||
the computation of
taxable income; | ||
(C) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income in | ||
the computation of taxable income
for the taxable | ||
year; | ||
(D) The amount of any net operating loss deduction | ||
taken in arriving at
taxable income, other than a net | ||
operating loss carried forward from a
taxable year | ||
ending prior to December 31, 1986; | ||
(E) For taxable years in which a net operating | ||
loss carryback or
carryforward from a taxable year | ||
ending prior to December 31, 1986 is an
element of | ||
taxable income under paragraph (1) of subsection (e) |
or subparagraph
(E) of paragraph (2) of subsection | ||
(e), the amount by which addition
modifications other | ||
than those provided by this subparagraph (E) exceeded
| ||
subtraction modifications in such taxable year, with | ||
the following limitations
applied in the order that | ||
they are listed: | ||
(i) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall be reduced by the amount | ||
of addition
modification under this subparagraph | ||
(E) which related to that net
operating loss and | ||
which was taken into account in calculating the | ||
base
income of an earlier taxable year, and | ||
(ii) the addition modification relating to the | ||
net operating loss
carried back or forward to the | ||
taxable year from any taxable year ending
prior to | ||
December 31, 1986 shall not exceed the amount of | ||
such carryback or
carryforward; | ||
For taxable years in which there is a net | ||
operating loss carryback or
carryforward from more | ||
than one other taxable year ending prior to December
| ||
31, 1986, the addition modification provided in this | ||
subparagraph (E) shall
be the sum of the amounts | ||
computed independently under the preceding
provisions | ||
of this subparagraph (E) for each such taxable year; |
(F) For taxable years ending on or after January | ||
1, 1989, an amount
equal to the tax deducted pursuant | ||
to Section 164 of the Internal Revenue
Code if the | ||
trust or estate is claiming the same tax for purposes | ||
of the
Illinois foreign tax credit under Section 601 | ||
of this Act; | ||
(G) An amount equal to the amount of the capital | ||
gain deduction
allowable under the Internal Revenue | ||
Code, to the extent deducted from
gross income in the | ||
computation of taxable income; | ||
(G-5) For taxable years ending after December 31, | ||
1997, an
amount equal to any eligible remediation | ||
costs that the trust or estate
deducted in computing | ||
adjusted gross income and for which the trust
or | ||
estate claims a credit under subsection (l) of Section | ||
201; | ||
(G-10) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of | ||
the Internal Revenue Code; and | ||
(G-11) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of property for which the | ||
taxpayer was required in any taxable year to
make an | ||
addition modification under subparagraph (G-10), then | ||
an amount equal
to the aggregate amount of the |
deductions taken in all taxable
years under | ||
subparagraph (R) with respect to that property. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which a | ||
subtraction is allowed with respect to that property | ||
under subparagraph (R) and for which the taxpayer was | ||
allowed in any taxable year to make a subtraction | ||
modification under subparagraph (R), then an amount | ||
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property; | ||
(G-12) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact that the foreign person's business activity | ||
outside the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily |
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income pursuant to Sections 951 | ||
through 964 of the Internal Revenue Code and amounts | ||
included in gross income under Section 78 of the | ||
Internal Revenue Code) with respect to the stock of | ||
the same person to whom the interest was paid, | ||
accrued, or incurred.
| ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the person, during the same taxable |
year, paid, accrued, or incurred, the interest | ||
to a person that is not a related member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
person did not have as a principal purpose the | ||
avoidance of Illinois income tax, and is paid | ||
pursuant to a contract or agreement that | ||
reflects an arm's-length interest rate and | ||
terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract | ||
or agreement entered into at arm's-length rates | ||
and terms and the principal purpose for the | ||
payment is not federal or Illinois tax avoidance; | ||
or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence that the adjustments are unreasonable; or | ||
if the taxpayer and the Director agree in writing | ||
to the application or use of an alternative method | ||
of apportionment under Section 304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act |
for any tax year beginning after the effective | ||
date of this amendment provided such adjustment is | ||
made pursuant to regulation adopted by the | ||
Department and such regulations provide methods | ||
and standards by which the Department will utilize | ||
its authority under Section 404 of this Act;
| ||
(G-13) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in | ||
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the |
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income pursuant to Sections 951 through 964 of the | ||
Internal Revenue Code and amounts included in gross | ||
income under Section 78 of the Internal Revenue Code) | ||
with respect to the stock of the same person to whom | ||
the intangible expenses and costs were directly or | ||
indirectly paid, incurred, or accrued. The preceding | ||
sentence shall not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(c)(2)(G-12) of | ||
this Act. As used in this subparagraph, the term | ||
"intangible expenses and costs" includes: (1) | ||
expenses, losses, and costs for or related to the | ||
direct or indirect acquisition, use, maintenance or | ||
management, ownership, sale, exchange, or any other | ||
disposition of intangible property; (2) losses | ||
incurred, directly or indirectly, from factoring | ||
transactions or discounting transactions; (3) royalty, | ||
patent, technical, and copyright fees; (4) licensing | ||
fees; and (5) other similar expenses and costs. For | ||
purposes of this subparagraph, "intangible property" | ||
includes patents, patent applications, trade names, | ||
trademarks, service marks, copyrights, mask works, | ||
trade secrets, and similar types of intangible assets. | ||
This paragraph shall not apply to the following: |
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such item; or | ||
(ii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the person during the same taxable | ||
year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the person did not have as a | ||
principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person if |
the taxpayer establishes by clear and convincing | ||
evidence, that the adjustments are unreasonable; | ||
or if the taxpayer and the Director agree in | ||
writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act | ||
for any tax year beginning after the effective | ||
date of this amendment provided such adjustment is | ||
made pursuant to regulation adopted by the | ||
Department and such regulations provide methods | ||
and standards by which the Department will utilize | ||
its authority under Section 404 of this Act;
| ||
(G-14) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed | ||
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The |
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 | ||
of the Internal Revenue Code) with respect to the | ||
stock of the same person to whom the premiums and costs | ||
were directly or indirectly paid, incurred, or | ||
accrued. The preceding sentence does not apply to the | ||
extent that the same dividends caused a reduction to | ||
the addition modification required under Section | ||
203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this | ||
Act; | ||
(G-15) An amount equal to the credit allowable to | ||
the taxpayer under Section 218(a) of this Act, | ||
determined without regard to Section 218(c) of this | ||
Act; | ||
(G-16) For taxable years ending on or after | ||
December 31, 2017, an amount equal to the deduction | ||
allowed under Section 199 of the Internal Revenue Code | ||
for the taxable year; | ||
and by deducting from the total so obtained the sum of the | ||
following
amounts: |
(H) An amount equal to all amounts included in | ||
such total pursuant
to the provisions of Sections | ||
402(a), 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 | ||
of the Internal Revenue Code or included in such total | ||
as
distributions under the provisions of any | ||
retirement or disability plan for
employees of any | ||
governmental agency or unit, or retirement payments to
| ||
retired partners, which payments are excluded in | ||
computing net earnings
from self employment by Section | ||
1402 of the Internal Revenue Code and
regulations | ||
adopted pursuant thereto; | ||
(I) The valuation limitation amount; | ||
(J) An amount equal to the amount of any tax | ||
imposed by this Act
which was refunded to the taxpayer | ||
and included in such total for the
taxable year; | ||
(K) An amount equal to all amounts included in | ||
taxable income as
modified by subparagraphs (A), (B), | ||
(C), (D), (E), (F) and (G) which
are exempt from | ||
taxation by this State either by reason of its | ||
statutes or
Constitution
or by reason of the | ||
Constitution, treaties or statutes of the United | ||
States;
provided that, in the case of any statute of | ||
this State that exempts income
derived from bonds or | ||
other obligations from the tax imposed under this Act,
| ||
the amount exempted shall be the interest net of bond | ||
premium amortization; |
(L) With the exception of any amounts subtracted | ||
under subparagraph
(K),
an amount equal to the sum of | ||
all amounts disallowed as
deductions by (i) Sections | ||
171(a)(2) and 265(a)(2) of the Internal Revenue
Code, | ||
and all amounts of expenses allocable
to interest and | ||
disallowed as deductions by Section 265(a)(1) of the | ||
Internal
Revenue Code;
and (ii) for taxable years
| ||
ending on or after August 13, 1999, Sections
| ||
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||
Internal Revenue Code, plus, (iii) for taxable years | ||
ending on or after December 31, 2011, Section | ||
45G(e)(3) of the Internal Revenue Code and, for | ||
taxable years ending on or after December 31, 2008, | ||
any amount included in gross income under Section 87 | ||
of the Internal Revenue Code; the provisions of this
| ||
subparagraph are exempt from the provisions of Section | ||
250; | ||
(M) An amount equal to those dividends included in | ||
such total
which were paid by a corporation which | ||
conducts business operations in a River Edge | ||
Redevelopment Zone or zones created under the River | ||
Edge Redevelopment Zone Act and
conducts substantially | ||
all of its operations in a River Edge Redevelopment | ||
Zone or zones. This subparagraph (M) is exempt from | ||
the provisions of Section 250; | ||
(N) An amount equal to any contribution made to a |
job training
project established pursuant to the Tax | ||
Increment Allocation
Redevelopment Act; | ||
(O) An amount equal to those dividends included in | ||
such total
that were paid by a corporation that | ||
conducts business operations in a
federally designated | ||
Foreign Trade Zone or Sub-Zone and that is designated
| ||
a High Impact Business located in Illinois; provided | ||
that dividends eligible
for the deduction provided in | ||
subparagraph (M) of paragraph (2) of this
subsection | ||
shall not be eligible for the deduction provided under | ||
this
subparagraph (O); | ||
(P) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code; | ||
(Q) For taxable year 1999 and thereafter, an | ||
amount equal to the
amount of any
(i) distributions, | ||
to the extent includible in gross income for
federal | ||
income tax purposes, made to the taxpayer because of
| ||
his or her status as a victim of
persecution for racial | ||
or religious reasons by Nazi Germany or any other Axis
| ||
regime or as an heir of the victim and (ii) items
of | ||
income, to the extent
includible in gross income for | ||
federal income tax purposes, attributable to,
derived | ||
from or in any way related to assets stolen from, |
hidden from, or
otherwise lost to a victim of
| ||
persecution for racial or religious reasons by Nazi
| ||
Germany or any other Axis regime
immediately prior to, | ||
during, and immediately after World War II, including,
| ||
but
not limited to, interest on the proceeds | ||
receivable as insurance
under policies issued to a | ||
victim of persecution for racial or religious
reasons | ||
by Nazi Germany or any other Axis regime by European | ||
insurance
companies
immediately prior to and during | ||
World War II;
provided, however, this subtraction from | ||
federal adjusted gross income does not
apply to assets | ||
acquired with such assets or with the proceeds from | ||
the sale of
such assets; provided, further, this | ||
paragraph shall only apply to a taxpayer
who was the | ||
first recipient of such assets after their recovery | ||
and who is a
victim of
persecution for racial or | ||
religious reasons
by Nazi Germany or any other Axis | ||
regime or as an heir of the victim. The
amount of and | ||
the eligibility for any public assistance, benefit, or
| ||
similar entitlement is not affected by the inclusion | ||
of items (i) and (ii) of
this paragraph in gross income | ||
for federal income tax purposes.
This paragraph is | ||
exempt from the provisions of Section 250; | ||
(R) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return |
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where: | ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not | ||
including the bonus depreciation deduction; | ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 | ||
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied | ||
by 0.429); | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0; | ||
(iii) for property on which a bonus |
depreciation deduction of 100% of the adjusted | ||
basis was taken in a taxable year ending on or | ||
after December 31, 2021, "x" equals the | ||
depreciation deduction that would be allowed | ||
on that property if the taxpayer had made the | ||
election under Section 168(k)(7) of the | ||
Internal Revenue Code to not claim bonus | ||
depreciation on that property; and | ||
(iv) for property on which a bonus | ||
depreciation deduction of a percentage other | ||
than 30%, 50% or 100% of the adjusted basis | ||
was taken in a taxable year ending on or after | ||
December 31, 2021, "x" equals "y" multiplied | ||
by 100 times the percentage bonus depreciation | ||
on the property (that is, 100(bonus%)) and | ||
then divided by 100 times 1 minus the | ||
percentage bonus depreciation on the property | ||
(that is, 100(1–bonus%)). | ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (R) is exempt from the provisions of | ||
Section 250; |
(S) If the taxpayer sells, transfers, abandons, or | ||
otherwise disposes of
property for which the taxpayer | ||
was required in any taxable year to make an
addition | ||
modification under subparagraph (G-10), then an amount | ||
equal to that
addition modification. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which a | ||
subtraction is allowed with respect to that property | ||
under subparagraph (R) and for which the taxpayer was | ||
required in any taxable year to make an addition | ||
modification under subparagraph (G-10), then an amount | ||
equal to that addition modification.
| ||
The taxpayer is allowed to take the deduction | ||
under this subparagraph
only once with respect to any | ||
one piece of property. | ||
This subparagraph (S) is exempt from the | ||
provisions of Section 250; | ||
(T) The amount of (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction | ||
with a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of such addition modification and
(ii) any | ||
income from intangible property (net of the deductions |
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer | ||
that is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of such | ||
addition modification. This subparagraph (T) is exempt | ||
from the provisions of Section 250;
| ||
(U) An amount equal to the interest income taken | ||
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but | ||
for the fact the foreign person's business activity | ||
outside the United States is 80% or more of that | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304, but not to exceed the | ||
addition modification required to be made for the same | ||
taxable year under Section 203(c)(2)(G-12) for | ||
interest paid, accrued, or incurred, directly or |
indirectly, to the same person. This subparagraph (U) | ||
is exempt from the provisions of Section 250; | ||
(V) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but | ||
for the fact that the foreign person's business | ||
activity outside the United States is 80% or more of | ||
that person's total business activity and (ii) for | ||
taxable years ending on or after December 31, 2008, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(c)(2)(G-13) for intangible expenses and costs | ||
paid, accrued, or incurred, directly or indirectly, to | ||
the same foreign person. This subparagraph (V) is | ||
exempt from the provisions of Section 250;
| ||
(W) in the case of an estate, an amount equal to | ||
all amounts included in such total pursuant to the | ||
provisions of Section 111 of the Internal Revenue Code |
as a recovery of items previously deducted by the | ||
decedent from adjusted gross income in the computation | ||
of taxable income. This subparagraph (W) is exempt | ||
from Section 250; | ||
(X) an amount equal to the refund included in such | ||
total of any tax deducted for federal income tax | ||
purposes, to the extent that deduction was added back | ||
under subparagraph (F). This subparagraph (X) is | ||
exempt from the provisions of Section 250; | ||
(Y) For taxable years ending on or after December | ||
31, 2011, in the case of a taxpayer who was required to | ||
add back any insurance premiums under Section | ||
203(c)(2)(G-14), such taxpayer may elect to subtract | ||
that part of a reimbursement received from the | ||
insurance company equal to the amount of the expense | ||
or loss (including expenses incurred by the insurance | ||
company) that would have been taken into account as a | ||
deduction for federal income tax purposes if the | ||
expense or loss had been uninsured. If a taxpayer | ||
makes the election provided for by this subparagraph | ||
(Y), the insurer to which the premiums were paid must | ||
add back to income the amount subtracted by the | ||
taxpayer pursuant to this subparagraph (Y). This | ||
subparagraph (Y) is exempt from the provisions of | ||
Section 250; and | ||
(Z) For taxable years beginning after December 31, |
2018 and before January 1, 2026, the amount of excess | ||
business loss of the taxpayer disallowed as a | ||
deduction by Section 461(l)(1)(B) of the Internal | ||
Revenue Code. | ||
(3) Limitation. The amount of any modification | ||
otherwise required
under this subsection shall, under | ||
regulations prescribed by the
Department, be adjusted by | ||
any amounts included therein which were
properly paid, | ||
credited, or required to be distributed, or permanently | ||
set
aside for charitable purposes pursuant to Internal | ||
Revenue Code Section
642(c) during the taxable year. | ||
(d) Partnerships. | ||
(1) In general. In the case of a partnership, base | ||
income means an
amount equal to the taxpayer's taxable | ||
income for the taxable year as
modified by paragraph (2). | ||
(2) Modifications. The taxable income referred to in | ||
paragraph (1)
shall be modified by adding thereto the sum | ||
of the following amounts: | ||
(A) An amount equal to all amounts paid or accrued | ||
to the taxpayer as
interest or dividends during the | ||
taxable year to the extent excluded from
gross income | ||
in the computation of taxable income; | ||
(B) An amount equal to the amount of tax imposed by | ||
this Act to the
extent deducted from gross income for | ||
the taxable year; |
(C) The amount of deductions allowed to the | ||
partnership pursuant to
Section 707 (c) of the | ||
Internal Revenue Code in calculating its taxable | ||
income; | ||
(D) An amount equal to the amount of the capital | ||
gain deduction
allowable under the Internal Revenue | ||
Code, to the extent deducted from
gross income in the | ||
computation of taxable income; | ||
(D-5) For taxable years 2001 and thereafter, an | ||
amount equal to the
bonus depreciation deduction taken | ||
on the taxpayer's federal income tax return for the | ||
taxable
year under subsection (k) of Section 168 of | ||
the Internal Revenue Code; | ||
(D-6) If the taxpayer sells, transfers, abandons, | ||
or otherwise disposes of
property for which the | ||
taxpayer was required in any taxable year to make an
| ||
addition modification under subparagraph (D-5), then | ||
an amount equal to the
aggregate amount of the | ||
deductions taken in all taxable years
under | ||
subparagraph (O) with respect to that property. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which a | ||
subtraction is allowed with respect to that property | ||
under subparagraph (O) and for which the taxpayer was | ||
allowed in any taxable year to make a subtraction | ||
modification under subparagraph (O), then an amount |
equal to that subtraction modification.
| ||
The taxpayer is required to make the addition | ||
modification under this
subparagraph
only once with | ||
respect to any one piece of property; | ||
(D-7) An amount equal to the amount otherwise | ||
allowed as a deduction in computing base income for | ||
interest paid, accrued, or incurred, directly or | ||
indirectly, (i) for taxable years ending on or after | ||
December 31, 2004, to a foreign person who would be a | ||
member of the same unitary business group but for the | ||
fact the foreign person's business activity outside | ||
the United States is 80% or more of the foreign | ||
person's total business activity and (ii) for taxable | ||
years ending on or after December 31, 2008, to a person | ||
who would be a member of the same unitary business | ||
group but for the fact that the person is prohibited | ||
under Section 1501(a)(27) from being included in the | ||
unitary business group because he or she is ordinarily | ||
required to apportion business income under different | ||
subsections of Section 304. The addition modification | ||
required by this subparagraph shall be reduced to the | ||
extent that dividends were included in base income of | ||
the unitary group for the same taxable year and | ||
received by the taxpayer or by a member of the | ||
taxpayer's unitary business group (including amounts | ||
included in gross income pursuant to Sections 951 |
through 964 of the Internal Revenue Code and amounts | ||
included in gross income under Section 78 of the | ||
Internal Revenue Code) with respect to the stock of | ||
the same person to whom the interest was paid, | ||
accrued, or incurred.
| ||
This paragraph shall not apply to the following:
| ||
(i) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such interest; or | ||
(ii) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer can establish, based on a | ||
preponderance of the evidence, both of the | ||
following: | ||
(a) the person, during the same taxable | ||
year, paid, accrued, or incurred, the interest | ||
to a person that is not a related member, and | ||
(b) the transaction giving rise to the | ||
interest expense between the taxpayer and the | ||
person did not have as a principal purpose the | ||
avoidance of Illinois income tax, and is paid | ||
pursuant to a contract or agreement that | ||
reflects an arm's-length interest rate and |
terms; or
| ||
(iii) the taxpayer can establish, based on | ||
clear and convincing evidence, that the interest | ||
paid, accrued, or incurred relates to a contract | ||
or agreement entered into at arm's-length rates | ||
and terms and the principal purpose for the | ||
payment is not federal or Illinois tax avoidance; | ||
or
| ||
(iv) an item of interest paid, accrued, or | ||
incurred, directly or indirectly, to a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence that the adjustments are unreasonable; or | ||
if the taxpayer and the Director agree in writing | ||
to the application or use of an alternative method | ||
of apportionment under Section 304(f).
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment | ||
otherwise allowed under Section 404 of this Act | ||
for any tax year beginning after the effective | ||
date of this amendment provided such adjustment is | ||
made pursuant to regulation adopted by the | ||
Department and such regulations provide methods | ||
and standards by which the Department will utilize | ||
its authority under Section 404 of this Act; and
| ||
(D-8) An amount equal to the amount of intangible | ||
expenses and costs otherwise allowed as a deduction in |
computing base income, and that were paid, accrued, or | ||
incurred, directly or indirectly, (i) for taxable | ||
years ending on or after December 31, 2004, to a | ||
foreign person who would be a member of the same | ||
unitary business group but for the fact that the | ||
foreign person's business activity outside the United | ||
States is 80% or more of that person's total business | ||
activity and (ii) for taxable years ending on or after | ||
December 31, 2008, to a person who would be a member of | ||
the same unitary business group but for the fact that | ||
the person is prohibited under Section 1501(a)(27) | ||
from being included in the unitary business group | ||
because he or she is ordinarily required to apportion | ||
business income under different subsections of Section | ||
304. The addition modification required by this | ||
subparagraph shall be reduced to the extent that | ||
dividends were included in base income of the unitary | ||
group for the same taxable year and received by the | ||
taxpayer or by a member of the taxpayer's unitary | ||
business group (including amounts included in gross | ||
income pursuant to Sections 951 through 964 of the | ||
Internal Revenue Code and amounts included in gross | ||
income under Section 78 of the Internal Revenue Code) | ||
with respect to the stock of the same person to whom | ||
the intangible expenses and costs were directly or | ||
indirectly paid, incurred or accrued. The preceding |
sentence shall not apply to the extent that the same | ||
dividends caused a reduction to the addition | ||
modification required under Section 203(d)(2)(D-7) of | ||
this Act. As used in this subparagraph, the term | ||
"intangible expenses and costs" includes (1) expenses, | ||
losses, and costs for, or related to, the direct or | ||
indirect acquisition, use, maintenance or management, | ||
ownership, sale, exchange, or any other disposition of | ||
intangible property; (2) losses incurred, directly or | ||
indirectly, from factoring transactions or discounting | ||
transactions; (3) royalty, patent, technical, and | ||
copyright fees; (4) licensing fees; and (5) other | ||
similar expenses and costs. For purposes of this | ||
subparagraph, "intangible property" includes patents, | ||
patent applications, trade names, trademarks, service | ||
marks, copyrights, mask works, trade secrets, and | ||
similar types of intangible assets; | ||
This paragraph shall not apply to the following: | ||
(i) any item of intangible expenses or costs | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person who | ||
is subject in a foreign country or state, other | ||
than a state which requires mandatory unitary | ||
reporting, to a tax on or measured by net income | ||
with respect to such item; or | ||
(ii) any item of intangible expense or cost |
paid, accrued, or incurred, directly or | ||
indirectly, if the taxpayer can establish, based | ||
on a preponderance of the evidence, both of the | ||
following: | ||
(a) the person during the same taxable | ||
year paid, accrued, or incurred, the | ||
intangible expense or cost to a person that is | ||
not a related member, and | ||
(b) the transaction giving rise to the | ||
intangible expense or cost between the | ||
taxpayer and the person did not have as a | ||
principal purpose the avoidance of Illinois | ||
income tax, and is paid pursuant to a contract | ||
or agreement that reflects arm's-length terms; | ||
or | ||
(iii) any item of intangible expense or cost | ||
paid, accrued, or incurred, directly or | ||
indirectly, from a transaction with a person if | ||
the taxpayer establishes by clear and convincing | ||
evidence, that the adjustments are unreasonable; | ||
or if the taxpayer and the Director agree in | ||
writing to the application or use of an | ||
alternative method of apportionment under Section | ||
304(f);
| ||
Nothing in this subsection shall preclude the | ||
Director from making any other adjustment |
otherwise allowed under Section 404 of this Act | ||
for any tax year beginning after the effective | ||
date of this amendment provided such adjustment is | ||
made pursuant to regulation adopted by the | ||
Department and such regulations provide methods | ||
and standards by which the Department will utilize | ||
its authority under Section 404 of this Act;
| ||
(D-9) For taxable years ending on or after | ||
December 31, 2008, an amount equal to the amount of | ||
insurance premium expenses and costs otherwise allowed | ||
as a deduction in computing base income, and that were | ||
paid, accrued, or incurred, directly or indirectly, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304. The | ||
addition modification required by this subparagraph | ||
shall be reduced to the extent that dividends were | ||
included in base income of the unitary group for the | ||
same taxable year and received by the taxpayer or by a | ||
member of the taxpayer's unitary business group | ||
(including amounts included in gross income under | ||
Sections 951 through 964 of the Internal Revenue Code | ||
and amounts included in gross income under Section 78 |
of the Internal Revenue Code) with respect to the | ||
stock of the same person to whom the premiums and costs | ||
were directly or indirectly paid, incurred, or | ||
accrued. The preceding sentence does not apply to the | ||
extent that the same dividends caused a reduction to | ||
the addition modification required under Section | ||
203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act; | ||
(D-10) An amount equal to the credit allowable to | ||
the taxpayer under Section 218(a) of this Act, | ||
determined without regard to Section 218(c) of this | ||
Act; | ||
(D-11) For taxable years ending on or after | ||
December 31, 2017, an amount equal to the deduction | ||
allowed under Section 199 of the Internal Revenue Code | ||
for the taxable year; | ||
and by deducting from the total so obtained the following | ||
amounts: | ||
(E) The valuation limitation amount; | ||
(F) An amount equal to the amount of any tax | ||
imposed by this Act which
was refunded to the taxpayer | ||
and included in such total for the taxable year; | ||
(G) An amount equal to all amounts included in | ||
taxable income as
modified by subparagraphs (A), (B), | ||
(C) and (D) which are exempt from
taxation by this | ||
State either by reason of its statutes or Constitution | ||
or
by reason of
the Constitution, treaties or statutes |
of the United States;
provided that, in the case of any | ||
statute of this State that exempts income
derived from | ||
bonds or other obligations from the tax imposed under | ||
this Act,
the amount exempted shall be the interest | ||
net of bond premium amortization; | ||
(H) Any income of the partnership which | ||
constitutes personal service
income as defined in | ||
Section 1348(b)(1) of the Internal Revenue Code (as
in | ||
effect December 31, 1981) or a reasonable allowance | ||
for compensation
paid or accrued for services rendered | ||
by partners to the partnership,
whichever is greater; | ||
this subparagraph (H) is exempt from the provisions of | ||
Section 250; | ||
(I) An amount equal to all amounts of income | ||
distributable to an entity
subject to the Personal | ||
Property Tax Replacement Income Tax imposed by
| ||
subsections (c) and (d) of Section 201 of this Act | ||
including amounts
distributable to organizations | ||
exempt from federal income tax by reason of
Section | ||
501(a) of the Internal Revenue Code; this subparagraph | ||
(I) is exempt from the provisions of Section 250; | ||
(J) With the exception of any amounts subtracted | ||
under subparagraph
(G),
an amount equal to the sum of | ||
all amounts disallowed as deductions
by (i) Sections | ||
171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||
and all amounts of expenses allocable to
interest and |
disallowed as deductions by Section 265(a)(1) of the | ||
Internal
Revenue Code;
and (ii) for taxable years
| ||
ending on or after August 13, 1999, Sections
| ||
171(a)(2), 265,
280C, and 832(b)(5)(B)(i) of the | ||
Internal Revenue Code, plus, (iii) for taxable years | ||
ending on or after December 31, 2011, Section | ||
45G(e)(3) of the Internal Revenue Code and, for | ||
taxable years ending on or after December 31, 2008, | ||
any amount included in gross income under Section 87 | ||
of the Internal Revenue Code; the provisions of this
| ||
subparagraph are exempt from the provisions of Section | ||
250; | ||
(K) An amount equal to those dividends included in | ||
such total which were
paid by a corporation which | ||
conducts business operations in a River Edge | ||
Redevelopment Zone or zones created under the River | ||
Edge Redevelopment Zone Act and
conducts substantially | ||
all of its operations
from a River Edge Redevelopment | ||
Zone or zones. This subparagraph (K) is exempt from | ||
the provisions of Section 250; | ||
(L) An amount equal to any contribution made to a | ||
job training project
established pursuant to the Real | ||
Property Tax Increment Allocation
Redevelopment Act; | ||
(M) An amount equal to those dividends included in | ||
such total
that were paid by a corporation that | ||
conducts business operations in a
federally designated |
Foreign Trade Zone or Sub-Zone and that is designated | ||
a
High Impact Business located in Illinois; provided | ||
that dividends eligible
for the deduction provided in | ||
subparagraph (K) of paragraph (2) of this
subsection | ||
shall not be eligible for the deduction provided under | ||
this
subparagraph (M); | ||
(N) An amount equal to the amount of the deduction | ||
used to compute the
federal income tax credit for | ||
restoration of substantial amounts held under
claim of | ||
right for the taxable year pursuant to Section 1341 of | ||
the
Internal Revenue Code; | ||
(O) For taxable years 2001 and thereafter, for the | ||
taxable year in
which the bonus depreciation deduction
| ||
is taken on the taxpayer's federal income tax return | ||
under
subsection (k) of Section 168 of the Internal | ||
Revenue Code and for each
applicable taxable year | ||
thereafter, an amount equal to "x", where: | ||
(1) "y" equals the amount of the depreciation | ||
deduction taken for the
taxable year
on the | ||
taxpayer's federal income tax return on property | ||
for which the bonus
depreciation deduction
was | ||
taken in any year under subsection (k) of Section | ||
168 of the Internal
Revenue Code, but not | ||
including the bonus depreciation deduction; | ||
(2) for taxable years ending on or before | ||
December 31, 2005, "x" equals "y" multiplied by 30 |
and then divided by 70 (or "y"
multiplied by | ||
0.429); and | ||
(3) for taxable years ending after December | ||
31, 2005: | ||
(i) for property on which a bonus | ||
depreciation deduction of 30% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
30 and then divided by 70 (or "y"
multiplied | ||
by 0.429); | ||
(ii) for property on which a bonus | ||
depreciation deduction of 50% of the adjusted | ||
basis was taken, "x" equals "y" multiplied by | ||
1.0; | ||
(iii) for property on which a bonus | ||
depreciation deduction of 100% of the adjusted | ||
basis was taken in a taxable year ending on or | ||
after December 31, 2021, "x" equals the | ||
depreciation deduction that would be allowed | ||
on that property if the taxpayer had made the | ||
election under Section 168(k)(7) of the | ||
Internal Revenue Code to not claim bonus | ||
depreciation on that property; and | ||
(iv) for property on which a bonus | ||
depreciation deduction of a percentage other | ||
than 30%, 50% or 100% of the adjusted basis | ||
was taken in a taxable year ending on or after |
December 31, 2021, "x" equals "y" multiplied | ||
by 100 times the percentage bonus depreciation | ||
on the property (that is, 100(bonus%)) and | ||
then divided by 100 times 1 minus the | ||
percentage bonus depreciation on the property | ||
(that is, 100(1–bonus%)). | ||
The aggregate amount deducted under this | ||
subparagraph in all taxable
years for any one piece of | ||
property may not exceed the amount of the bonus
| ||
depreciation deduction
taken on that property on the | ||
taxpayer's federal income tax return under
subsection | ||
(k) of Section 168 of the Internal Revenue Code. This | ||
subparagraph (O) is exempt from the provisions of | ||
Section 250; | ||
(P) If the taxpayer sells, transfers, abandons, or | ||
otherwise disposes of
property for which the taxpayer | ||
was required in any taxable year to make an
addition | ||
modification under subparagraph (D-5), then an amount | ||
equal to that
addition modification. | ||
If the taxpayer continues to own property through | ||
the last day of the last tax year for which a | ||
subtraction is allowed with respect to that property | ||
under subparagraph (O) and for which the taxpayer was | ||
required in any taxable year to make an addition | ||
modification under subparagraph (D-5), then an amount | ||
equal to that addition modification.
|
The taxpayer is allowed to take the deduction | ||
under this subparagraph
only once with respect to any | ||
one piece of property. | ||
This subparagraph (P) is exempt from the | ||
provisions of Section 250; | ||
(Q) The amount of (i) any interest income (net of | ||
the deductions allocable thereto) taken into account | ||
for the taxable year with respect to a transaction | ||
with a taxpayer that is required to make an addition | ||
modification with respect to such transaction under | ||
Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||
the amount of such addition modification and
(ii) any | ||
income from intangible property (net of the deductions | ||
allocable thereto) taken into account for the taxable | ||
year with respect to a transaction with a taxpayer | ||
that is required to make an addition modification with | ||
respect to such transaction under Section | ||
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||
203(d)(2)(D-8), but not to exceed the amount of such | ||
addition modification. This subparagraph (Q) is exempt | ||
from Section 250;
| ||
(R) An amount equal to the interest income taken | ||
into account for the taxable year (net of the | ||
deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a |
member of the taxpayer's unitary business group but | ||
for the fact that the foreign person's business | ||
activity outside the United States is 80% or more of | ||
that person's total business activity and (ii) for | ||
taxable years ending on or after December 31, 2008, to | ||
a person who would be a member of the same unitary | ||
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(d)(2)(D-7) for interest paid, accrued, or | ||
incurred, directly or indirectly, to the same person. | ||
This subparagraph (R) is exempt from Section 250; | ||
(S) An amount equal to the income from intangible | ||
property taken into account for the taxable year (net | ||
of the deductions allocable thereto) with respect to | ||
transactions with (i) a foreign person who would be a | ||
member of the taxpayer's unitary business group but | ||
for the fact that the foreign person's business | ||
activity outside the United States is 80% or more of | ||
that person's total business activity and (ii) for | ||
taxable years ending on or after December 31, 2008, to | ||
a person who would be a member of the same unitary |
business group but for the fact that the person is | ||
prohibited under Section 1501(a)(27) from being | ||
included in the unitary business group because he or | ||
she is ordinarily required to apportion business | ||
income under different subsections of Section 304, but | ||
not to exceed the addition modification required to be | ||
made for the same taxable year under Section | ||
203(d)(2)(D-8) for intangible expenses and costs paid, | ||
accrued, or incurred, directly or indirectly, to the | ||
same person. This subparagraph (S) is exempt from | ||
Section 250; and
| ||
(T) For taxable years ending on or after December | ||
31, 2011, in the case of a taxpayer who was required to | ||
add back any insurance premiums under Section | ||
203(d)(2)(D-9), such taxpayer may elect to subtract | ||
that part of a reimbursement received from the | ||
insurance company equal to the amount of the expense | ||
or loss (including expenses incurred by the insurance | ||
company) that would have been taken into account as a | ||
deduction for federal income tax purposes if the | ||
expense or loss had been uninsured. If a taxpayer | ||
makes the election provided for by this subparagraph | ||
(T), the insurer to which the premiums were paid must | ||
add back to income the amount subtracted by the | ||
taxpayer pursuant to this subparagraph (T). This | ||
subparagraph (T) is exempt from the provisions of |
Section 250. | ||
(e) Gross income; adjusted gross income; taxable income. | ||
(1) In general. Subject to the provisions of paragraph | ||
(2) and
subsection (b)(3), for purposes of this Section | ||
and Section 803(e), a
taxpayer's gross income, adjusted | ||
gross income, or taxable income for
the taxable year shall | ||
mean the amount of gross income, adjusted gross
income or | ||
taxable income properly reportable for federal income tax
| ||
purposes for the taxable year under the provisions of the | ||
Internal
Revenue Code. Taxable income may be less than | ||
zero. However, for taxable
years ending on or after | ||
December 31, 1986, net operating loss
carryforwards from | ||
taxable years ending prior to December 31, 1986, may not
| ||
exceed the sum of federal taxable income for the taxable | ||
year before net
operating loss deduction, plus the excess | ||
of addition modifications over
subtraction modifications | ||
for the taxable year. For taxable years ending
prior to | ||
December 31, 1986, taxable income may never be an amount | ||
in excess
of the net operating loss for the taxable year as | ||
defined in subsections
(c) and (d) of Section 172 of the | ||
Internal Revenue Code, provided that when
taxable income | ||
of a corporation (other than a Subchapter S corporation),
| ||
trust, or estate is less than zero and addition | ||
modifications, other than
those provided by subparagraph | ||
(E) of paragraph (2) of subsection (b) for
corporations or |
subparagraph (E) of paragraph (2) of subsection (c) for
| ||
trusts and estates, exceed subtraction modifications, an | ||
addition
modification must be made under those | ||
subparagraphs for any other taxable
year to which the | ||
taxable income less than zero (net operating loss) is
| ||
applied under Section 172 of the Internal Revenue Code or | ||
under
subparagraph (E) of paragraph (2) of this subsection | ||
(e) applied in
conjunction with Section 172 of the | ||
Internal Revenue Code. | ||
(2) Special rule. For purposes of paragraph (1) of | ||
this subsection,
the taxable income properly reportable | ||
for federal income tax purposes
shall mean: | ||
(A) Certain life insurance companies. In the case | ||
of a life
insurance company subject to the tax imposed | ||
by Section 801 of the
Internal Revenue Code, life | ||
insurance company taxable income, plus the
amount of | ||
distribution from pre-1984 policyholder surplus | ||
accounts as
calculated under Section 815a of the | ||
Internal Revenue Code; | ||
(B) Certain other insurance companies. In the case | ||
of mutual
insurance companies subject to the tax | ||
imposed by Section 831 of the
Internal Revenue Code, | ||
insurance company taxable income; | ||
(C) Regulated investment companies. In the case of | ||
a regulated
investment company subject to the tax | ||
imposed by Section 852 of the
Internal Revenue Code, |
investment company taxable income; | ||
(D) Real estate investment trusts. In the case of | ||
a real estate
investment trust subject to the tax | ||
imposed by Section 857 of the
Internal Revenue Code, | ||
real estate investment trust taxable income; | ||
(E) Consolidated corporations. In the case of a | ||
corporation which
is a member of an affiliated group | ||
of corporations filing a consolidated
income tax | ||
return for the taxable year for federal income tax | ||
purposes,
taxable income determined as if such | ||
corporation had filed a separate
return for federal | ||
income tax purposes for the taxable year and each
| ||
preceding taxable year for which it was a member of an | ||
affiliated group.
For purposes of this subparagraph, | ||
the taxpayer's separate taxable
income shall be | ||
determined as if the election provided by Section
| ||
243(b)(2) of the Internal Revenue Code had been in | ||
effect for all such years; | ||
(F) Cooperatives. In the case of a cooperative | ||
corporation or
association, the taxable income of such | ||
organization determined in
accordance with the | ||
provisions of Section 1381 through 1388 of the
| ||
Internal Revenue Code, but without regard to the | ||
prohibition against offsetting losses from patronage | ||
activities against income from nonpatronage | ||
activities; except that a cooperative corporation or |
association may make an election to follow its federal | ||
income tax treatment of patronage losses and | ||
nonpatronage losses. In the event such election is | ||
made, such losses shall be computed and carried over | ||
in a manner consistent with subsection (a) of Section | ||
207 of this Act and apportioned by the apportionment | ||
factor reported by the cooperative on its Illinois | ||
income tax return filed for the taxable year in which | ||
the losses are incurred. The election shall be | ||
effective for all taxable years with original returns | ||
due on or after the date of the election. In addition, | ||
the cooperative may file an amended return or returns, | ||
as allowed under this Act, to provide that the | ||
election shall be effective for losses incurred or | ||
carried forward for taxable years occurring prior to | ||
the date of the election. Once made, the election may | ||
only be revoked upon approval of the Director. The | ||
Department shall adopt rules setting forth | ||
requirements for documenting the elections and any | ||
resulting Illinois net loss and the standards to be | ||
used by the Director in evaluating requests to revoke | ||
elections. Public Act 96-932 is declaratory of | ||
existing law; | ||
(G) Subchapter S corporations. In the case of: (i) | ||
a Subchapter S
corporation for which there is in | ||
effect an election for the taxable year
under Section |
1362 of the Internal Revenue Code, the taxable income | ||
of such
corporation determined in accordance with | ||
Section 1363(b) of the Internal
Revenue Code, except | ||
that taxable income shall take into
account those | ||
items which are required by Section 1363(b)(1) of the
| ||
Internal Revenue Code to be separately stated; and | ||
(ii) a Subchapter
S corporation for which there is in | ||
effect a federal election to opt out of
the provisions | ||
of the Subchapter S Revision Act of 1982 and have | ||
applied
instead the prior federal Subchapter S rules | ||
as in effect on July 1, 1982,
the taxable income of | ||
such corporation determined in accordance with the
| ||
federal Subchapter S rules as in effect on July 1, | ||
1982; and | ||
(H) Partnerships. In the case of a partnership, | ||
taxable income
determined in accordance with Section | ||
703 of the Internal Revenue Code,
except that taxable | ||
income shall take into account those items which are
| ||
required by Section 703(a)(1) to be separately stated | ||
but which would be
taken into account by an individual | ||
in calculating his taxable income. | ||
(3) Recapture of business expenses on disposition of | ||
asset or business. Notwithstanding any other law to the | ||
contrary, if in prior years income from an asset or | ||
business has been classified as business income and in a | ||
later year is demonstrated to be non-business income, then |
all expenses, without limitation, deducted in such later | ||
year and in the 2 immediately preceding taxable years | ||
related to that asset or business that generated the | ||
non-business income shall be added back and recaptured as | ||
business income in the year of the disposition of the | ||
asset or business. Such amount shall be apportioned to | ||
Illinois using the greater of the apportionment fraction | ||
computed for the business under Section 304 of this Act | ||
for the taxable year or the average of the apportionment | ||
fractions computed for the business under Section 304 of | ||
this Act for the taxable year and for the 2 immediately | ||
preceding taxable years.
| ||
(f) Valuation limitation amount. | ||
(1) In general. The valuation limitation amount | ||
referred to in
subsections (a)(2)(G), (c)(2)(I) and | ||
(d)(2)(E) is an amount equal to: | ||
(A) The sum of the pre-August 1, 1969 appreciation | ||
amounts (to the
extent consisting of gain reportable | ||
under the provisions of Section
1245 or 1250 of the | ||
Internal Revenue Code) for all property in respect
of | ||
which such gain was reported for the taxable year; | ||
plus | ||
(B) The lesser of (i) the sum of the pre-August 1, | ||
1969 appreciation
amounts (to the extent consisting of | ||
capital gain) for all property in
respect of which |
such gain was reported for federal income tax purposes
| ||
for the taxable year, or (ii) the net capital gain for | ||
the taxable year,
reduced in either case by any amount | ||
of such gain included in the amount
determined under | ||
subsection (a)(2)(F) or (c)(2)(H). | ||
(2) Pre-August 1, 1969 appreciation amount. | ||
(A) If the fair market value of property referred | ||
to in paragraph
(1) was readily ascertainable on | ||
August 1, 1969, the pre-August 1, 1969
appreciation | ||
amount for such property is the lesser of (i) the | ||
excess of
such fair market value over the taxpayer's | ||
basis (for determining gain)
for such property on that | ||
date (determined under the Internal Revenue
Code as in | ||
effect on that date), or (ii) the total gain realized | ||
and
reportable for federal income tax purposes in | ||
respect of the sale,
exchange or other disposition of | ||
such property. | ||
(B) If the fair market value of property referred | ||
to in paragraph
(1) was not readily ascertainable on | ||
August 1, 1969, the pre-August 1,
1969 appreciation | ||
amount for such property is that amount which bears
| ||
the same ratio to the total gain reported in respect of | ||
the property for
federal income tax purposes for the | ||
taxable year, as the number of full
calendar months in | ||
that part of the taxpayer's holding period for the
| ||
property ending July 31, 1969 bears to the number of |
full calendar
months in the taxpayer's entire holding | ||
period for the
property. | ||
(C) The Department shall prescribe such | ||
regulations as may be
necessary to carry out the | ||
purposes of this paragraph. | ||
(g) Double deductions. Unless specifically provided | ||
otherwise, nothing
in this Section shall permit the same item | ||
to be deducted more than once. | ||
(h) Legislative intention. Except as expressly provided by | ||
this
Section there shall be no modifications or limitations on | ||
the amounts
of income, gain, loss or deduction taken into | ||
account in determining
gross income, adjusted gross income or | ||
taxable income for federal income
tax purposes for the taxable | ||
year, or in the amount of such items
entering into the | ||
computation of base income and net income under this
Act for | ||
such taxable year, whether in respect of property values as of
| ||
August 1, 1969 or otherwise. | ||
(Source: P.A. 101-9, eff. 6-5-19; 101-81, eff. 7-12-19; | ||
102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-658, eff. | ||
8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. 12-21-22.) | ||
Section 50. The Code of Civil Procedure is amended by | ||
changing Section 13-212 and by adding Section 13-215.1 as | ||
follows:
|
(735 ILCS 5/13-212) (from Ch. 110, par. 13-212)
| ||
Sec. 13-212. Physician or hospital.
| ||
(a) Except as provided in Section
13-215 or 13-215.1 of | ||
this Act, no action for damages for injury or death against any
| ||
physician, dentist, registered nurse or hospital duly licensed | ||
under
the laws of this State, whether based upon tort, or | ||
breach of contract, or
otherwise, arising out of patient care | ||
shall be brought more than 2 years
after the date on which the | ||
claimant knew, or through the use of reasonable
diligence | ||
should have known, or received notice in writing of the | ||
existence
of the injury or death for which damages are sought | ||
in the action,
whichever of such date occurs first, but in no | ||
event shall such action be
brought more than 4 years after the | ||
date on which occurred the act or
omission or occurrence | ||
alleged in such action to have been the cause of
such injury or | ||
death.
| ||
(b) Except as provided in Section 13-215 or 13-215.1 of | ||
this Act, no action for
damages for injury or death against any | ||
physician, dentist, registered
nurse or hospital duly licensed | ||
under the laws of this State, whether based
upon tort, or | ||
breach of contract, or otherwise, arising out of patient care
| ||
shall be brought more than 8 years after the date on which
| ||
occurred the act or omission or occurrence alleged in such | ||
action to have
been the cause of such injury or death where the | ||
person entitled to bring
the action was, at the time the cause |
of action accrued, under the age of
18 years; provided, | ||
however, that in no event may the cause of action be
brought | ||
after the person's 22nd birthday. If the person was under the | ||
age
of 18 years when the cause of action accrued and, as a | ||
result of this
amendatory Act of 1987, the action is either | ||
barred or there remains less
than 3 years to bring such action, | ||
then he or she may bring the action
within 3 years of July 20, | ||
1987.
| ||
(c) If the person entitled to bring an action
described in | ||
this Section is, at the time the cause
of action accrued, under | ||
a legal disability other than being under
the age of 18 years, | ||
then the period of limitations does
not begin to run until the | ||
disability is removed. | ||
(d) If the person
entitled to bring an action described in | ||
this Section is not under a legal disability at the time the | ||
cause of action accrues, but becomes under a legal disability | ||
before the period of limitations otherwise runs, the period of | ||
limitations is stayed until the disability is removed. This | ||
subsection (d) does not invalidate any statute of repose | ||
provisions contained in this Section. This subsection (d) | ||
applies to actions commenced or pending on or after the | ||
effective date of this amendatory Act of the 98th General | ||
Assembly.
| ||
(Source: P.A. 98-1077, eff. 1-1-15 .)
| ||
(735 ILCS 5/13-215.1 new) |
Sec. 13-215.1. Fertility fraud limitation. Notwithstanding | ||
any other provision of the law, an action for fertility fraud | ||
under the Illinois Fertility Fraud Act must be commenced | ||
within the later of 20 years, if brought under Section 15 of | ||
the Illinois Fertility Fraud Act, or 8 years, if brought under | ||
Section 20 of the Illinois Fertility Fraud Act, after: | ||
(1) the procedure was performed; | ||
(2) the 18th birthday of the child; | ||
(3) the person first discovers evidence sufficient to | ||
bring an action against the defendant through DNA | ||
(deoxyribonucleic acid) analysis; | ||
(4) the person first becomes aware of the existence of | ||
a record that provides evidence sufficient to bring an | ||
action against the defendant; or | ||
(5) the defendant confesses to the offense.
|