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Public Act 095-1024 |
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AN ACT concerning economic development.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the New | ||||
Markets Development Program Act. | ||||
Section 5. Definitions. As used in this Act:
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"Applicable percentage" means 0% for each of the first 2 | ||||
credit allowance dates, 7% for the third credit allowance date, | ||||
and 8% for the next 4 credit allowance dates. | ||||
"Credit allowance date" means with respect to any qualified | ||||
equity investment:
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(1) the date on which the investment is initially made; | ||||
and | ||||
(2) each of the 6 anniversary dates of that date | ||||
thereafter. | ||||
"Department" means the Department of Commerce and Economic | ||||
Opportunity. | ||||
"Long-term debt security" means any debt instrument issued | ||||
by a qualified community development entity, at par value or a | ||||
premium, with an original maturity date of at least 7 years | ||||
from the date of its issuance, with no acceleration of | ||||
repayment, amortization, or prepayment features prior to its | ||||
original maturity date. Cumulative cash payments of interest on |
the qualified debt instrument during the period commencing with | ||
the issuance of the qualified debt instrument and ending with | ||
the seventh anniversary of its issuance shall not exceed the | ||
sum of such cash interest payments and the cumulative net | ||
income of the issuing community development entity for the same | ||
period. This definition in no way limits the holder's ability | ||
to accelerate payments on the debt instrument in situations | ||
where the issuer has defaulted on covenants designed to ensure | ||
compliance with this Act or Section 45D of the Internal Revenue | ||
Code of 1986, as amended. | ||
"Purchase price" means the amount paid to the issuer of a | ||
qualified equity investment for that qualified equity | ||
investment. | ||
"Qualified active low-income community business" has the | ||
meaning given to that term in Section 45D of the Internal | ||
Revenue Code of 1986, as amended; except that any business that | ||
derives or projects to derive 15% or more of its annual revenue | ||
from the rental or sale of real estate is not considered to be | ||
a qualified active low-income community business. This | ||
exception does not apply to a business that is controlled by or | ||
under common control with another business if the second | ||
business (i) does not derive or project to derive 15% or more | ||
of its annual revenue from the rental or sale of real estate | ||
and (ii) is the primary tenant of the real estate leased from | ||
the initial business. A business shall be considered a | ||
qualified active low-income community business for the |
duration of the qualified community development entity's | ||
investment in or loan to the business if the entity reasonably | ||
expects, at the time it makes the investment or loan, that the | ||
business will continue to satisfy the requirements for being a | ||
qualified active low-income community business throughout the | ||
entire period of the investment or loan. | ||
"Qualified community development entity" has the meaning | ||
given to that term in Section 45D of the Internal Revenue Code | ||
of 1986, as amended; provided that such entity has entered | ||
into, or is controlled by an entity that has entered into, an | ||
allocation agreement with the Community Development Financial | ||
Institutions Fund of the U.S. Treasury Department with respect | ||
to credits authorized by Section 45D of the Internal Revenue | ||
Code of 1986, as amended, that includes the State of Illinois | ||
within the service area set forth in that allocation agreement. | ||
"Qualified equity investment" means any equity investment | ||
in, or long-term debt security issued by, a qualified community | ||
development entity that:
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(1) is acquired after the effective date of this Act at | ||
its original issuance solely in exchange for cash; | ||
(2) has at least 85% of its cash purchase price used by | ||
the issuer to make qualified low-income community | ||
investments in the State of Illinois; and | ||
(3) is designated by the issuer as a qualified equity | ||
investment under this
Act and is certified by the | ||
Department as not exceeding the limitation contained in |
Section 20. | ||
This term includes any qualified equity investment that | ||
does not meet the provisions of item (1) of this definition if | ||
the investment was a qualified equity investment in the hands | ||
of a prior holder. | ||
"Qualified low-income community investment" means any | ||
capital or equity investment in, or loan to, any qualified | ||
active low-income community business. With respect to any one | ||
qualified active low-income community business, the maximum | ||
amount of qualified low-income community investments made in | ||
that business, on a collective basis with all of its affiliates | ||
that may be counted towards the satisfaction of paragraph (2) | ||
of the definition of qualified equity investment, shall be | ||
$10,000,000 whether issued to one or several qualified | ||
community development entities. | ||
"Tax credit" means a credit against any income, franchise, | ||
or insurance premium taxes otherwise due under Illinois law.
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"Taxpayer" means any individual or entity subject to any | ||
income, franchise, or insurance premium tax under Illinois law. | ||
Section 10. Credit established. A person or entity that | ||
makes a qualified equity investment earns a vested right to tax | ||
credits as follows: | ||
(1) on each credit allowance date of the qualified | ||
equity investment, the purchaser of the qualified equity | ||
investment, or subsequent holder of the qualified equity |
investment, is entitled to a tax credit during the taxable | ||
year including that credit allowance date; | ||
(2) the tax credit amount shall be equal to the | ||
applicable percentage for such credit allowance date | ||
multiplied by the purchase price paid to the issuer of the | ||
qualified equity investment; and | ||
(3) the amount of the tax credit claimed shall not | ||
exceed the amount of the State tax liability of the holder, | ||
or the person or entity to whom the credit is allocated for | ||
use pursuant to Section 15, for the tax year for which the | ||
tax credit is claimed. | ||
A company doing insurance business in this State claiming a | ||
tax credit against insurance premium taxes payable pursuant to | ||
Section 409 of the Illinois Insurance Code is not required to | ||
pay any additional retaliatory tax imposed pursuant to Section | ||
444 or 444.1 of the Illinois Insurance Code related to that | ||
claim for a tax credit. | ||
Section 15. Transferability. No tax credit claimed under | ||
this Act shall be refundable or saleable on the open market. | ||
Tax credits earned by a partnership, limited liability company, | ||
S corporation, or other "pass-through" entity may be allocated | ||
to the partners, members, or shareholders of that entity for | ||
their direct use in accordance with the provisions of any | ||
agreement among the partners, members, or shareholders. Any | ||
amount of tax credit that the taxpayer, or partner, member, or |
shareholder thereof, is prohibited from claiming in a taxable | ||
year may be carried forward to any of the taxpayer's 5 | ||
subsequent taxable years. | ||
Section 20. Annual cap on credits. The Department shall | ||
limit the monetary amount of qualified equity investments | ||
permitted under this Act to a level necessary to limit tax | ||
credit use at no more than $10,000,000 of tax credits in any | ||
fiscal year. This limitation on qualified equity investments | ||
shall be based on the anticipated use of credits without regard | ||
to the potential for taxpayers to carry forward tax credits to | ||
later tax years. | ||
Section 25. Certification of qualified equity investments. | ||
(a) A qualified community development entity that seeks to | ||
have an equity investment or long-term debt security designated | ||
as a qualified equity investment and eligible for tax credits | ||
under this Section shall apply to the Department. The qualified | ||
community development entity must submit an application on a | ||
form that the Department provides that includes: | ||
(1) The name, address, tax identification number of the | ||
entity, and evidence of the entity's certification as a | ||
qualified community development entity. | ||
(2) A copy of the allocation agreement executed by the | ||
entity, or its controlling entity, and the Community | ||
Development Financial Institutions Fund. |
(3) A certificate executed by an executive officer of | ||
the entity attesting that the allocation agreement remains | ||
in effect and has not been revoked or cancelled by the | ||
Community Development Financial Institutions Fund. | ||
(4) A description of the proposed amount, structure, | ||
and purchaser of the equity investment or long-term debt | ||
security. | ||
(5) The name and tax identification number of any | ||
taxpayer eligible to utilize tax credits earned as a result | ||
of the issuance of the qualified equity investment. | ||
(6) Information regarding the proposed use of proceeds | ||
from the issuance of the qualified equity investment. | ||
(7) A nonrefundable application fee of $5,000. This fee | ||
shall be paid to the Department and shall be required of | ||
each application submitted. | ||
(b) Within 30 days after receipt of a completed application | ||
containing the information necessary for the Department to | ||
certify a potential qualified equity investment, including the | ||
payment of the application fee, the Department shall grant or | ||
deny the application in full or in part. If the Department | ||
denies any part of the application, it shall inform the | ||
qualified community development entity of the grounds for the | ||
denial. If the qualified community development entity provides | ||
any additional information required by the Department or | ||
otherwise completes its application within 15 days of the | ||
notice of denial, the application shall be considered completed |
as of the original date of submission. If the qualified | ||
community development entity fails to provide the information | ||
or complete its application within the 15-day period, the | ||
application remains denied and must be resubmitted in full with | ||
a new submission date. | ||
(c) If the application is deemed complete, the Department | ||
shall certify the proposed equity investment or long-term debt | ||
security as a qualified equity investment that is eligible for | ||
tax credits under this Section, subject to the limitations | ||
contained in Section 20. The Department shall provide written | ||
notice of the certification to the qualified community | ||
development entity. The notice shall include the names of those | ||
taxpayers who are eligible to utilize the credits and their | ||
respective credit amounts. If the names of the taxpayers who | ||
are eligible to utilize the credits change due to a transfer of | ||
a qualified equity investment or a change in an allocation | ||
pursuant to Section 15, the qualified community development | ||
entity shall notify the Department of such change. | ||
(d) The Department shall certify qualified equity | ||
investments in the order applications are received by the | ||
Department. Applications received on the same day shall be | ||
deemed to have been received simultaneously. For applications | ||
received on the same day and deemed complete, the Department | ||
shall certify, consistent with remaining tax credit capacity, | ||
qualified equity investments in proportionate percentages | ||
based upon the ratio of the amount of qualified equity |
investment requested in an application to the total amount of | ||
qualified equity investments requested in all applications | ||
received on the same day. | ||
(e) Once the Department has certified qualified equity | ||
investments that, on a cumulative basis, are eligible for | ||
$10,000,000 in tax credits, the Department may not certify any | ||
more qualified equity investments. If a pending request cannot | ||
be fully certified, the Department shall certify the portion | ||
that may be certified unless the qualified community | ||
development entity elects to withdraw its request rather than | ||
receive partial credit. | ||
(f) Within 30 days after receiving notice of certification, | ||
the qualified community development entity shall issue the | ||
qualified equity investment and receive cash in the amount of | ||
the certified amount. The qualified community development | ||
entity must provide the Department with evidence of the receipt | ||
of the cash investment within 10 business days after receipt. | ||
If the qualified community development entity does not receive | ||
the cash investment and issue the qualified equity investment | ||
within 30 days following receipt of the certification notice, | ||
the certification shall lapse and the entity may not issue the | ||
qualified equity investment without reapplying to the | ||
Department for certification. A certification that lapses | ||
reverts back to the Department and may be reissued only in | ||
accordance with the application process outline in this Section | ||
25. |
Section 40. Recapture. The Department of Revenue shall | ||
recapture, from the taxpayer that claimed the credit on a | ||
return, the tax credit allowed under this Act if: | ||
(1) any amount of the federal tax credit available with | ||
respect to a qualified equity investment that is eligible | ||
for a tax credit under this Act is recaptured under Section | ||
45D of the Internal Revenue Code of 1986, as amended. In | ||
that case, the Department of Revenue's recapture shall be | ||
proportionate to the federal recapture with respect to that | ||
qualified equity investment; | ||
(2) the issuer redeems or makes principal repayment | ||
with respect to a qualified equity investment prior to the | ||
7th anniversary of the issuance of the qualified equity | ||
investment. In that case, the Department of Revenue's | ||
recapture shall be proportionate to the amount of the | ||
redemption or repayment with respect to the qualified | ||
equity investment; or | ||
(3) the issuer fails to invest at least 85% of the cash | ||
purchase price of the qualified equity investment in | ||
qualified low-income community investments in the State of | ||
Illinois within 12 months of the issuance of the qualified | ||
equity investment and maintain such level of investment in | ||
qualified low-income community investments in Illinois | ||
until the last credit allowance date for such qualified | ||
equity investment. |
For purposes of this Section, an investment shall be | ||
considered held by an issuer even if the investment has been | ||
sold or repaid; provided that the issuer reinvests an amount | ||
equal to the capital returned to or recovered by the issuer | ||
from the original investment, exclusive of any profits | ||
realized, in another qualified low-income community investment | ||
in this State within 12 months after the receipt of that | ||
capital. An issuer is not required to reinvest capital returned | ||
from qualified low-income community investments after the 6th | ||
anniversary of the issuance of the qualified equity investment, | ||
the proceeds of which were used to make the qualified | ||
low-income community investment, and the qualified low-income | ||
community investment shall be considered held by the issuer | ||
through the 7th anniversary of the qualified equity | ||
investment's issuance. | ||
The Department of Revenue shall provide notice to the | ||
qualified community development entity of any proposed | ||
recapture of tax credits pursuant to this Section. The entity | ||
shall have 90 days to cure any deficiency indicated in the | ||
Department of Revenue's original recapture notice and avoid | ||
such recapture. If the entity fails or is unable to cure such | ||
deficiency with the 90-day period, the Department of Revenue | ||
shall provide the entity and the taxpayer from whom the credit | ||
is to be recaptured with a final order of recapture. Any tax | ||
credit for which a final recapture order has been issued shall | ||
be recaptured by the Department of Revenue from the taxpayer |
who claimed the tax credit on a tax return. | ||
Section 45. Examination and Rulemaking. | ||
(a) The Department may conduct examinations to verify that | ||
the tax credits under this Act have been received and applied | ||
according to the requirements of this Act and to verify that no | ||
event has occurred that would result in a recapture of tax | ||
credits under Section 40. | ||
(b) Neither the Department nor the Department of Revenue | ||
shall have the authority to promulgate rules under the Act, but | ||
the Department and the Department of Revenue shall have the | ||
authority to issue advisory letters to individual qualified | ||
community development entities and their investors that are | ||
limited to the specific facts outlined in an advisory letter | ||
request from a qualified community development entity. Such | ||
rulings cannot be relied upon by any person or entity other | ||
than the qualified community development entity that requested | ||
the letter and the taxpayers that are entitled to any tax | ||
credits generated from investments in such entity. For purposes | ||
of this subsection, "rules" is given the meaning contained in | ||
Section 1-70 of the Illinois Administrative Procedure Act. | ||
(c) In rendering advisory letters and making other | ||
determinations under this Act, to the extent applicable, the | ||
Department and the Department of Revenue shall look for | ||
guidance to Section 45D of the Internal Revenue Code of 1986, | ||
as amended, and the rules and regulations issued thereunder. |
Section 50. Sunset. For fiscal years following fiscal year | ||
2012, qualified equity investments shall not be made under this | ||
Act unless reauthorization is made pursuant to this Section. | ||
For all fiscal years following fiscal year 2012, unless the | ||
General Assembly adopts a joint resolution granting authority | ||
to the Department to approve qualified equity investments for | ||
the Illinois new markets development program and clearly | ||
describing the amount of tax credits available for the next | ||
fiscal year, or otherwise complies with the provisions of this | ||
Section, no qualified equity investments may be permitted to be | ||
made under this Act. The amount of available tax credits | ||
contained in such a resolution shall not exceed the limitation | ||
provided under Section 20. Nothing in this Section precludes a | ||
taxpayer who makes a qualified equity investment prior to the | ||
expiration of authority to make qualified equity investments | ||
from claiming tax credits relating to that qualified equity | ||
investment for each applicable credit allowance date. | ||
Section 75. The Illinois Insurance Code is amended by | ||
changing Sections 409, 444, and 444.1 as follows:
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(215 ILCS 5/409) (from Ch. 73, par. 1021)
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Sec. 409. Annual privilege tax payable by
companies.
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(1) As of January 1, 1999 for all health maintenance | ||
organization premiums
written; as of July 1, 1998 for all |
premiums written as accident and health
business, voluntary | ||
health service plan business, dental service plan business,
or | ||
limited health service organization business; and as of January | ||
1, 1998
for all other types of insurance premiums written, | ||
every company doing any form
of insurance business in this
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State, including, but not limited to, every risk retention | ||
group, and excluding
all fraternal benefit societies, all farm | ||
mutual companies, all religious
charitable risk pooling | ||
trusts, and excluding all statutory residual market and
special | ||
purpose entities in which companies are statutorily required to
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participate, whether incorporated or otherwise, shall pay, for | ||
the privilege of
doing business in this State, to the Director | ||
for the State treasury a State
tax equal to 0.5% of the net | ||
taxable premium written, together with any amounts
due under | ||
Section 444 of this Code, except that the tax to be paid on any
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premium derived from any accident and health insurance or on | ||
any insurance
business written by any company operating as a | ||
health maintenance organization,
voluntary health service | ||
plan, dental service plan, or limited health service
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organization shall be equal to 0.4% of such net taxable premium | ||
written,
together with any amounts due under Section 444. Upon | ||
the failure of any
company to pay any such tax due, the | ||
Director may, by order, revoke or
suspend the company's | ||
certificate of authority after giving 20 days written
notice to | ||
the company, or commence proceedings for the suspension of | ||
business
in this State under the procedures set forth by |
Section 401.1 of this Code.
The gross taxable premium written | ||
shall be the gross amount of premiums
received on direct | ||
business during the calendar year on contracts covering
risks | ||
in this State, except premiums on annuities, premiums on which | ||
State
premium taxes are prohibited by federal law, premiums | ||
paid by the State for
health care coverage for Medicaid | ||
eligible insureds as described in Section
5-2 of the Illinois | ||
Public Aid Code, premiums paid for health care services
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included as an element of tuition charges at any university or | ||
college owned
and operated by the State of Illinois, premiums | ||
on group insurance contracts
under the State Employees Group | ||
Insurance Act of 1971, and except premiums for
deferred | ||
compensation plans for employees of the State, units of local
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government, or school districts. The net taxable premium shall | ||
be the gross
taxable premium written reduced only by the | ||
following:
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(a) the amount of premiums returned thereon which shall | ||
be limited to
premiums returned during the same preceding | ||
calendar year and shall not include
the return of cash | ||
surrender values or death benefits on life policies
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including annuities;
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(b) dividends on such direct business that have been | ||
paid in cash, applied
in reduction of premiums or left to | ||
accumulate to the credit of policyholders
or annuitants. In | ||
the case of life insurance, no deduction shall be made for
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the payment of deferred dividends paid in cash to |
policyholders on maturing
policies; dividends left to | ||
accumulate to the credit of policyholders or
annuitants | ||
shall be included as gross taxable premium written when | ||
such
dividend
accumulations are applied to purchase | ||
paid-up insurance or to shorten the
endowment or premium | ||
paying period.
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(2) The annual privilege tax payment due from a company | ||
under subsection (4)
of
this Section may be reduced by: (a) the | ||
excess amount, if any, by which the
aggregate income taxes paid | ||
by the company, on a cash basis, for the preceding
calendar | ||
year under subsections (a) through (d) of Section 201 of the | ||
Illinois
Income Tax Act exceed 1.5% of the company's net | ||
taxable premium written for
that prior calendar year, as | ||
determined under subsection (1) of this Section;
and (b) the | ||
amount of any fire department taxes paid by the company during | ||
the
preceding calendar year under Section 11-10-1 of the | ||
Illinois Municipal Code.
Any deductible amount or offset | ||
allowed under items (a) and (b) of this
subsection for any | ||
calendar year will not be allowed as a deduction or offset
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against the company's privilege tax liability for any other | ||
taxing period or
calendar year.
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(3) If a company survives or was formed by a merger, | ||
consolidation,
reorganization, or reincorporation, the | ||
premiums received and amounts returned
or paid by all companies | ||
party to the merger, consolidation, reorganization,
or | ||
reincorporation shall, for purposes of determining the amount |
of the tax
imposed by this Section, be regarded as received, | ||
returned, or paid by the
surviving
or new company.
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(4)(a) All companies subject to the provisions of this | ||
Section shall make an
annual return for the preceding calendar | ||
year on or before March 15 setting
forth such information on | ||
such forms as the Director may reasonably require.
Payments of | ||
quarterly installments of the taxpayer's total estimated tax | ||
for
the current calendar year shall be due on or before April | ||
15, June 15,
September 15, and December 15 of such year, except | ||
that all companies
transacting insurance in this State whose | ||
annual tax for the immediately
preceding calendar year was less | ||
than $5,000 shall make only an annual return.
Failure of a | ||
company to make the annual payment, or to make the quarterly
| ||
payments, if required, of at least 25% of either (i) the total | ||
tax paid during
the
previous calendar year or (ii) 80% of the | ||
actual tax for the current calendar
year shall subject it to | ||
the penalty provisions set forth in Section 412 of
this Code.
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(b) Notwithstanding the foregoing provisions, no annual | ||
return shall be
required or made on March 15, 1998, under this | ||
subsection. For the calendar
year 1998:
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(i) each health maintenance organization shall have no | ||
estimated tax
installments;
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(ii) all companies subject to the tax as of July 1, | ||
1998 as
set forth in subsection (1) shall have estimated | ||
tax installments due on
September
15 and December 15 of | ||
1998 which
installments shall each amount to no less than |
one-half of 80% of the actual
tax on its net taxable | ||
premium written during the period July 1, 1998, through
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December 31, 1998; and
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(iii) all other companies shall have estimated tax | ||
installments due on
June
15, September 15, and December 15 | ||
of 1998 which installments shall each
amount to no less | ||
than one-third of 80% of the actual tax on its net taxable
| ||
premium written during the calendar year 1998.
| ||
In the year 1999 and thereafter all companies shall make | ||
annual and
quarterly installments of their estimated tax as | ||
provided by paragraph (a) of
this subsection.
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(5) In addition to the authority specifically granted under | ||
Article XXV of
this Code, the Director shall have such | ||
authority to adopt rules and establish
forms as may be | ||
reasonably necessary
for purposes of determining the | ||
allocation of Illinois corporate income taxes
paid under | ||
subsections (a) through (d) of Section 201 of the Illinois | ||
Income
Tax Act amongst members of a business group that files | ||
an Illinois corporate
income tax return on a unitary basis, for | ||
purposes of regulating the amendment
of tax returns, for | ||
purposes of defining terms, and for purposes of enforcing
the | ||
provisions of
Article XXV of
this Code. The Director shall also | ||
have authority to defer, waive, or abate
the tax
imposed by | ||
this Section if in his opinion the company's solvency and | ||
ability to
meet its insured obligations would be immediately | ||
threatened by payment of the
tax due.
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(c) This Section is subject to the provisions of Section 10 | ||
of the New Markets Development Program Act. | ||
(Source: P.A. 90-583, eff. 5-29-98.)
| ||
(215 ILCS 5/444) (from Ch. 73, par. 1056)
| ||
Sec. 444. Retaliation.
| ||
(1) Whenever the existing or future laws of any other state | ||
or country
shall
require of companies incorporated or organized | ||
under the laws of this State
as a condition precedent to their | ||
doing business in such other state or
country, compliance with | ||
laws, rules, regulations, and prohibitions more
onerous or | ||
burdensome than the rules and regulations imposed by this State
| ||
on foreign or alien companies, or shall require any deposit of | ||
securities
or other obligations in such state or country, for | ||
the protection of
policyholders or otherwise or require of such | ||
companies or agents thereof
or brokers the payment of | ||
penalties, fees, charges, or taxes greater than
the penalties, | ||
fees, charges, or taxes required in the aggregate for like
| ||
purposes by this Code or any other law of this State, of | ||
foreign or alien
companies, agents thereof or brokers, then | ||
such laws, rules, regulations,
and prohibitions of said other | ||
state or country shall apply to companies
incorporated or | ||
organized under the laws of such state or country doing
| ||
business in this State, and all such companies, agents thereof, | ||
or brokers
doing business in this State, shall be required to | ||
make deposits, pay
penalties, fees, charges, and taxes, in |
amounts equal to those required in
the aggregate for like | ||
purposes of Illinois companies doing business in
such state or | ||
country, agents thereof or brokers. Whenever any other state
or | ||
country shall refuse to permit any insurance company | ||
incorporated or
organized under the laws of this State to | ||
transact business according to
its usual plan in such other | ||
state or country, the director may, if
satisfied that such | ||
company of this State is solvent, properly managed, and
can | ||
operate legally under the laws of such other state or country,
| ||
forthwith suspend or cancel the license of every insurance | ||
company doing
business in this State which is incorporated or | ||
organized under the laws of
such other state or country to the | ||
extent that it insures in this State
against any of the risks | ||
or hazards which are sought to be insured against
by the | ||
company of this State in such other state or country.
| ||
(2) The provisions of this Section shall not apply to | ||
residual market
or special purpose assessments or guaranty fund | ||
or guaranty association
assessments, both under the laws of | ||
this State and under the laws of any other
state
or country, | ||
and any tax offset or credit for any such assessment shall, for
| ||
purposes of this Section, be treated as a tax paid both under | ||
the laws of this
State and under the laws of any other state or | ||
country.
| ||
(3) The terms "penalties", "fees", "charges", and "taxes" | ||
in subsection
(1) of this
Section
shall include: the penalties, | ||
fees, charges, and taxes collected under State
law
and
|
referenced within Article XXV exclusive of any items referenced | ||
by
subsection
(2) of this Section, but including any tax offset | ||
allowed under Section 531.13
of this Code; the Illinois | ||
corporate income taxes imposed under
subsections (a) through | ||
(d) of Section 201 of the Illinois Income Tax Act after
any tax | ||
offset allowed under Section 531.13 of this Code;
income or | ||
personal property taxes imposed by other states or countries;
| ||
penalties, fees, charges, and taxes of other states
or | ||
countries imposed for purposes like those of the penalties, | ||
fees, charges,
and taxes
specified in Article XXV of this Code | ||
exclusive of any item referenced in
subsection (2) of this | ||
Section; and any penalties, fees, charges, and taxes
required | ||
as
a
franchise, privilege, or licensing tax for
conducting the | ||
business of insurance whether calculated as a percentage of
| ||
income, gross receipts, premium, or otherwise.
| ||
(4) Nothing contained in this Section or Section 409 or | ||
Section 444.1 is
intended to authorize or expand any power of | ||
local governmental units or
municipalities to impose taxes, | ||
fees, or charges.
| ||
(5) This Section is subject to the provisions of Section 10 | ||
of the New Markets Development Program Act. | ||
(Source: P.A. 90-583, eff. 5-29-98.)
| ||
(215 ILCS 5/444.1) (from Ch. 73, par. 1056.1)
| ||
Sec. 444.1. Payment of retaliatory taxes.
| ||
(1) Every foreign or alien
company doing insurance business |
in this State shall pay the Director the
retaliatory tax | ||
determined in accordance with Section 444.
| ||
(2) (a) All companies subject to the provisions of this | ||
Section shall
make an
annual return for the preceding calendar | ||
year on or before March 15 setting
forth such information on | ||
such forms as the Director may reasonably require.
Payments of | ||
quarterly installments of the taxpayer's total estimated
| ||
retaliatory tax for the current calendar year shall be due on | ||
or before April
15, June 15, September 15, and December 15 of | ||
such year, except that all
companies
transacting insurance | ||
business in this State whose annual tax for the
immediately
| ||
preceding calendar year was less than $5,000 shall make only an | ||
annual
return. Failure of a company to make the annual payment, | ||
or to make the
quarterly payments, if required, of at least | ||
one-fourth of either (i) the total
tax paid during the previous | ||
calendar year or (ii) 80% of the actual tax for
the current | ||
calendar year shall subject it to the penalty provisions set | ||
forth
in Section 412 of this Code.
| ||
(b) Notwithstanding the foregoing provisions of paragraph | ||
(a) of this
subsection, the retaliatory tax liability of | ||
companies under Section 444 of
this Code for the calendar year | ||
ended December 31, 1997 shall be
determined in accordance with | ||
this amendatory Act of 1998 and shall include in
the aggregate | ||
comparative tax burden for the State of Illinois, any tax | ||
offset
allowed under Section 531.13 of this Code and any income
| ||
taxes paid for the year 1997 under subsections (a) through (d) |
of Section 201
of the Illinois Income Tax Act after any tax | ||
offset allowed under Section
531.13 of this Code.
| ||
(i) Any annual retaliatory tax returns and payments | ||
made for the year
ended December 31, 1997 and any quarterly | ||
installments of the taxpayer's total
estimated 1998 | ||
retaliatory tax liability paid prior to the effective date | ||
of
this Amendatory Act of 1998 that do not include the | ||
items specified by
subsection (1) of this Section shall be | ||
amended and restated, at the taxpayer's
election, on forms
| ||
prepared by the Director so as to provide for the
inclusion | ||
of such items.
An amended and restated return for the year | ||
ended December 31, 1997 filed under
this subparagraph shall | ||
treat any payment of estimated privilege taxes under
| ||
Section 409 as in effect prior to October 23, 1997 as a | ||
payment of estimated
retaliatory taxes for the year ended | ||
December 31, 1997.
| ||
(ii) Any overpayment resulting from such amended | ||
return and restated tax
liability shall be allowed as a | ||
credit against any subsequent privilege or
retaliatory tax | ||
obligations of the taxpayer.
| ||
(iii) In the year 1999 and thereafter all companies | ||
shall make annual and
quarterly installments of their | ||
estimated tax as provided by paragraph
(a) of this | ||
subsection.
| ||
(3) Any tax payment made under this Section and any tax | ||
returns prepared
in compliance with Section 410 shall give full |
consideration to the impact
of any future reduction in or | ||
elimination of a taxpayer's liability under
Section 409, | ||
whether such reduction or elimination is due to an operation
of | ||
law or an Act of the General Assembly.
| ||
(4) Any foreign or alien taxpayer who makes, under protest, | ||
a tax payment
required by Section 409 shall, at the time of | ||
payment, file a retaliatory
tax return sufficient to disclose | ||
the full amount of retaliatory taxes which
would be due and | ||
owing for the tax period in question if the protest were
| ||
upheld. Notwithstanding the provisions of the State Officers | ||
and Employees
Money Disposition Act or any other laws of this | ||
State, the protested
payment, to the extent of the retaliatory | ||
tax so disclosed, shall be deposited
directly in the General | ||
Revenue Fund; and the balance of the payment, if
any, shall be | ||
deposited in a protest account pursuant to the provisions
of | ||
the aforesaid Act, as now or hereafter amended.
| ||
(5) The failure of a company to make the annual payment or | ||
to make the
quarterly payments, if required,
of at least | ||
one-fourth of either (i) the total tax paid
during the | ||
preceding
calendar year or (ii) 80% of the actual tax for the | ||
current calendar
year shall subject it to the penalty | ||
provisions set forth in Section
412 of this Code.
| ||
(6) This Section is subject to the provisions of Section 10 | ||
of the New Markets Development Program Act. | ||
(Source: P.A. 90-583, eff. 5-29-98.)
| ||
Section 99. Effective date. This Act takes effect upon |
becoming law.
|