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Public Act 096-0641 |
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AN ACT concerning revenue.
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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 5. The Illinois Income Tax Act is amended by | ||||
changing Section 1501 as follows:
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(35 ILCS 5/1501) (from Ch. 120, par. 15-1501)
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Sec. 1501. Definitions.
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(a) In general. When used in this Act, where not
otherwise | ||||
distinctly expressed or manifestly incompatible with the | ||||
intent
thereof:
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(1) Business income. The term "business income" means | ||||
all income that may be treated as apportionable business | ||||
income under the Constitution of the United States. | ||||
Business income is net of the deductions allocable thereto. | ||||
Such term does not include compensation
or the deductions | ||||
allocable thereto.
For each taxable year beginning on or | ||||
after January 1, 2003, a taxpayer may
elect to treat all | ||||
income other than compensation as business income. This
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election shall be made in accordance with rules adopted by | ||||
the Department and,
once made, shall be irrevocable.
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(1.5) Captive real estate investment trust:
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(A) The term "captive real estate investment | ||||
trust" means a corporation, trust, or association:
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(i) that is considered a real estate | ||
investment trust for the taxable year under | ||
Section 856 of the Internal Revenue Code;
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(ii) the certificates of beneficial interest | ||
or shares of which are not regularly traded on an | ||
established securities market; and | ||
(iii) of which more than 50% of the voting | ||
power or value of the beneficial interest or | ||
shares, at any time during the last half of the | ||
taxable year, is owned or controlled, directly, | ||
indirectly, or constructively, by a single | ||
corporation person . | ||
(B) The term "captive real estate investment | ||
trust" does not include: | ||
(i) a real estate investment trust of which | ||
more than 50% of the voting power or value of the | ||
beneficial interest or shares is owned or | ||
controlled, directly, indirectly, or | ||
constructively, by: | ||
(a) a real estate investment trust, other | ||
than a captive real estate investment trust; | ||
(b) a person who is exempt from taxation | ||
under Section 501 of the Internal Revenue Code, | ||
and who is not required to treat income | ||
received from the real estate investment trust | ||
as unrelated business taxable income under |
Section 512 of the Internal Revenue Code; | ||
(c) a listed Australian property trust, if | ||
no more than 50% of the voting power or value | ||
of the beneficial interest or shares of that | ||
trust, at any time during the last half of the | ||
taxable year, is owned or controlled, directly | ||
or indirectly, by a single person; or | ||
(d) an entity organized as a trust, | ||
provided a listed Australian property trust | ||
described in subparagraph (c) owns or | ||
controls, directly or indirectly, or | ||
constructively, 75% or more of the voting power | ||
or value of the beneficial interests or shares | ||
of such entity; or | ||
(e) an entity that is organized outside of | ||
the laws of the United States and that | ||
satisfies all of the following criteria: | ||
(1) at least 75% of the entity's total | ||
asset value at the close of its taxable | ||
year is represented by real estate assets | ||
(as defined in Section 856(c)(5)(B) of the | ||
Internal Revenue Code, thereby including | ||
shares or certificates of beneficial | ||
interest in any real estate investment | ||
trust), cash and cash equivalents, and | ||
U.S. Government securities; |
(2) the entity is not subject to tax on | ||
amounts that are distributed to its | ||
beneficial owners or is exempt from | ||
entity-level taxation; | ||
(3) the entity distributes at least | ||
85% of its taxable income (as computed in | ||
the jurisdiction in which it is organized) | ||
to the holders of its shares or | ||
certificates of beneficial interest on an | ||
annual basis; | ||
(4) either (i) the shares or | ||
beneficial interests of the entity are | ||
regularly traded on an established | ||
securities market or (ii) not more than 10% | ||
of the voting power or value in the entity | ||
is held, directly, indirectly, or | ||
constructively, by a single entity or | ||
individual; and | ||
(5) the entity is organized in a | ||
country that has entered into a tax treaty | ||
with the United States; or | ||
(ii) during its first taxable year for which it | ||
elects to be treated as a real estate investment | ||
trust under Section 856(c)(1) of the Internal | ||
Revenue Code, a real estate investment trust the | ||
certificates of beneficial interest or shares of |
which are not regularly traded on an established | ||
securities market, but only if the certificates of | ||
beneficial interest or shares of the real estate | ||
investment trust are regularly traded on an | ||
established securities market prior to the earlier | ||
of the due date (including extensions) for filing | ||
its return under this Act for that first taxable | ||
year or the date it actually files that return. | ||
(C) For the purposes of this subsection (1.5), the | ||
constructive ownership rules prescribed under Section | ||
318(a) of the Internal Revenue Code, as modified by | ||
Section 856(d)(5) of the Internal Revenue Code, apply | ||
in determining the ownership of stock, assets, or net | ||
profits of any person.
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(2) Commercial domicile. The term "commercial | ||
domicile" means the
principal
place from which the trade or | ||
business of the taxpayer is directed or managed.
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(3) Compensation. The term "compensation" means wages, | ||
salaries,
commissions
and any other form of remuneration | ||
paid to employees for personal services.
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(4) Corporation. The term "corporation" includes | ||
associations, joint-stock
companies, insurance companies | ||
and cooperatives. Any entity, including a
limited | ||
liability company formed under the Illinois Limited | ||
Liability Company
Act, shall be treated as a corporation if | ||
it is so classified for federal
income tax purposes.
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(5) Department. The term "Department" means the | ||
Department of Revenue of
this State.
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(6) Director. The term "Director" means the Director of | ||
Revenue of this
State.
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(7) Fiduciary. The term "fiduciary" means a guardian, | ||
trustee, executor,
administrator, receiver, or any person | ||
acting in any fiduciary capacity for any
person.
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(8) Financial organization.
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(A) The term "financial organization" means
any
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bank, bank holding company, trust company, savings | ||
bank, industrial bank,
land bank, safe deposit | ||
company, private banker, savings and loan association,
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building and loan association, credit union, currency | ||
exchange, cooperative
bank, small loan company, sales | ||
finance company, investment company, or any
person | ||
which is owned by a bank or bank holding company. For | ||
the purpose of
this Section a "person" will include | ||
only those persons which a bank holding
company may | ||
acquire and hold an interest in, directly or | ||
indirectly, under the
provisions of the Bank Holding | ||
Company Act of 1956 (12 U.S.C. 1841, et seq.),
except | ||
where interests in any person must be disposed of | ||
within certain
required time limits under the Bank | ||
Holding Company Act of 1956.
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(B) For purposes of subparagraph (A) of this | ||
paragraph, the term
"bank" includes (i) any entity that |
is regulated by the Comptroller of the
Currency under | ||
the National Bank Act, or by the Federal Reserve Board, | ||
or by
the
Federal Deposit Insurance Corporation and | ||
(ii) any federally or State chartered
bank
operating as | ||
a credit card bank.
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(C) For purposes of subparagraph (A) of this | ||
paragraph, the term
"sales finance company" has the | ||
meaning provided in the following item (i) or
(ii):
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(i) A person primarily engaged in one or more | ||
of the following
businesses: the business of | ||
purchasing customer receivables, the business
of | ||
making loans upon the security of customer | ||
receivables, the
business of making loans for the | ||
express purpose of funding purchases of
tangible | ||
personal property or services by the borrower, or | ||
the business of
finance leasing. For purposes of | ||
this item (i), "customer receivable"
means:
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(a) a retail installment contract or | ||
retail charge agreement within
the
meaning
of | ||
the Sales Finance Agency Act, the Retail | ||
Installment Sales Act, or the
Motor Vehicle | ||
Retail Installment Sales Act;
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(b) an installment, charge, credit, or | ||
similar contract or agreement
arising from
the | ||
sale of tangible personal property or services | ||
in a transaction involving
a deferred payment |
price payable in one or more installments | ||
subsequent
to the sale; or
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(c) the outstanding balance of a contract | ||
or agreement described in
provisions
(a) or (b) | ||
of this item (i).
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A customer receivable need not provide for | ||
payment of interest on
deferred
payments. A sales | ||
finance company may purchase a customer receivable | ||
from, or
make a loan secured by a customer | ||
receivable to, the seller in the original
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transaction or to a person who purchased the | ||
customer receivable directly or
indirectly from | ||
that seller.
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(ii) A corporation meeting each of the | ||
following criteria:
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(a) the corporation must be a member of an | ||
"affiliated group" within
the
meaning of | ||
Section 1504(a) of the Internal Revenue Code, | ||
determined
without regard to Section 1504(b) | ||
of the Internal Revenue Code;
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(b) more than 50% of the gross income of | ||
the corporation for the
taxable
year
must be | ||
interest income derived from qualifying loans. | ||
A "qualifying
loan" is a loan made to a member | ||
of the corporation's affiliated group that
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originates customer receivables (within the |
meaning of item (i)) or to whom
customer | ||
receivables originated by a member of the | ||
affiliated group have been
transferred, to
the | ||
extent the average outstanding balance of | ||
loans from that corporation
to members of its | ||
affiliated group during the taxable year do not | ||
exceed
the limitation amount for that | ||
corporation. The "limitation amount" for a
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corporation is the average outstanding | ||
balances during the taxable year of
customer | ||
receivables (within the meaning of item (i)) | ||
originated by
all members of the affiliated | ||
group.
If the average outstanding balances of | ||
the
loans made by a corporation to members of | ||
its affiliated group exceed the
limitation | ||
amount, the interest income of that | ||
corporation from qualifying
loans shall be | ||
equal to its interest income from loans to | ||
members of its
affiliated groups times a | ||
fraction equal to the limitation amount | ||
divided by
the average outstanding balances of | ||
the loans made by that corporation to
members | ||
of its affiliated group;
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(c) the total of all shareholder's equity | ||
(including, without
limitation,
paid-in
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capital on common and preferred stock and |
retained earnings) of the
corporation plus the | ||
total of all of its loans, advances, and other
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obligations payable or owed to members of its | ||
affiliated group may not
exceed 20% of the | ||
total assets of the corporation at any time | ||
during the tax
year; and
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(d) more than 50% of all interest-bearing | ||
obligations of the
affiliated group payable to | ||
persons outside the group determined in | ||
accordance
with generally accepted accounting | ||
principles must be obligations of the
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corporation.
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This amendatory Act of the 91st General Assembly is | ||
declaratory of
existing
law.
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(D) Subparagraphs
(B) and (C) of this paragraph are | ||
declaratory of
existing law and apply retroactively, | ||
for all tax years beginning on or before
December 31, | ||
1996,
to all original returns, to all amended returns | ||
filed no later than 30
days after the effective date of | ||
this amendatory Act of 1996, and to all
notices issued | ||
on or before the effective date of this amendatory Act | ||
of 1996
under subsection (a) of Section 903, subsection | ||
(a) of Section 904,
subsection (e) of Section 909, or | ||
Section 912.
A taxpayer that is a "financial | ||
organization" that engages in any transaction
with an | ||
affiliate shall be a "financial organization" for all |
purposes of this
Act.
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(E) For all tax years beginning on or
before | ||
December 31, 1996, a taxpayer that falls within the | ||
definition
of a
"financial organization" under | ||
subparagraphs (B) or (C) of this paragraph, but
who | ||
does
not fall within the definition of a "financial | ||
organization" under the Proposed
Regulations issued by | ||
the Department of Revenue on July 19, 1996, may
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irrevocably elect to apply the Proposed Regulations | ||
for all of those years as
though the Proposed | ||
Regulations had been lawfully promulgated, adopted, | ||
and in
effect for all of those years. For purposes of | ||
applying subparagraphs (B) or
(C) of
this
paragraph to | ||
all of those years, the election allowed by this | ||
subparagraph
applies only to the taxpayer making the | ||
election and to those members of the
taxpayer's unitary | ||
business group who are ordinarily required to | ||
apportion
business income under the same subsection of | ||
Section 304 of this Act as the
taxpayer making the | ||
election. No election allowed by this subparagraph | ||
shall
be made under a claim
filed under subsection (d) | ||
of Section 909 more than 30 days after the
effective | ||
date of this amendatory Act of 1996.
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(F) Finance Leases. For purposes of this | ||
subsection, a finance lease
shall be treated as a loan | ||
or other extension of credit, rather than as a
lease,
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regardless of how the transaction is characterized for | ||
any other purpose,
including the purposes of any | ||
regulatory agency to which the lessor is subject.
A | ||
finance lease is any transaction in the form of a lease | ||
in which the lessee
is treated as the owner of the | ||
leased asset entitled to any deduction for
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depreciation allowed under Section 167 of the Internal | ||
Revenue Code.
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(9) Fiscal year. The term "fiscal year" means an | ||
accounting period of
12 months ending on the last day of | ||
any month other than December.
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(9.5) Fixed place of business. The term "fixed place of | ||
business" has the same meaning as that term is given in | ||
Section 864 of the Internal Revenue Code and the related | ||
Treasury regulations.
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(10) Includes and including. The terms "includes" and | ||
"including" when
used in a definition contained in this Act | ||
shall not be deemed to exclude
other things otherwise | ||
within the meaning of the term defined.
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(11) Internal Revenue Code. The term "Internal Revenue | ||
Code" means the
United States Internal Revenue Code of 1954 | ||
or any successor law or laws
relating to federal income | ||
taxes in effect for the taxable year.
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(11.5) Investment partnership. | ||
(A) The term "investment partnership" means any | ||
entity that is treated as a partnership for federal |
income tax purposes that meets the following | ||
requirements: | ||
(i) no less than 90% of the partnership's cost | ||
of its total assets consists of qualifying | ||
investment securities, deposits at banks or other | ||
financial institutions, and office space and | ||
equipment reasonably necessary to carry on its | ||
activities as an investment partnership; | ||
(ii) no less than 90% of its gross income | ||
consists of interest, dividends, and gains from | ||
the sale or exchange of qualifying investment | ||
securities; and
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(iii) the partnership is not a dealer in | ||
qualifying investment securities. | ||
(B) For purposes of this paragraph (11.5), the term | ||
"qualifying investment securities" includes all of the | ||
following:
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(i) common stock, including preferred or debt | ||
securities convertible into common stock, and | ||
preferred stock; | ||
(ii) bonds, debentures, and other debt | ||
securities; | ||
(iii) foreign and domestic currency deposits | ||
secured by federal, state, or local governmental | ||
agencies; | ||
(iv) mortgage or asset-backed securities |
secured by federal, state, or local governmental | ||
agencies; | ||
(v) repurchase agreements and loan | ||
participations; | ||
(vi) foreign currency exchange contracts and | ||
forward and futures contracts on foreign | ||
currencies; | ||
(vii) stock and bond index securities and | ||
futures contracts and other similar financial | ||
securities and futures contracts on those | ||
securities;
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(viii) options for the purchase or sale of any | ||
of the securities, currencies, contracts, or | ||
financial instruments described in items (i) to | ||
(vii), inclusive;
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(ix) regulated futures contracts;
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(x) commodities (not described in Section | ||
1221(a)(1) of the Internal Revenue Code) or | ||
futures, forwards, and options with respect to | ||
such commodities, provided, however, that any item | ||
of a physical commodity to which title is actually | ||
acquired in the partnership's capacity as a dealer | ||
in such commodity shall not be a qualifying | ||
investment security;
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(xi) derivatives; and
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(xii) a partnership interest in another |
partnership that is an investment partnership.
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(12) Mathematical error. The term "mathematical error" | ||
includes the
following types of errors, omissions, or | ||
defects in a return filed by a
taxpayer which prevents | ||
acceptance of the return as filed for processing:
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(A) arithmetic errors or incorrect computations on | ||
the return or
supporting schedules;
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(B) entries on the wrong lines;
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(C) omission of required supporting forms or | ||
schedules or the omission
of the information in whole | ||
or in part called for thereon; and
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(D) an attempt to claim, exclude, deduct, or | ||
improperly report, in a
manner
directly contrary to the | ||
provisions of the Act and regulations thereunder
any | ||
item of income, exemption, deduction, or credit.
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(13) Nonbusiness income. The term "nonbusiness income" | ||
means all income
other than business income or | ||
compensation.
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(14) Nonresident. The term "nonresident" means a | ||
person who is not a
resident.
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(15) Paid, incurred and accrued. The terms "paid", | ||
"incurred" and
"accrued"
shall be construed according to | ||
the method of accounting upon the basis
of which the | ||
person's base income is computed under this Act.
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(16) Partnership and partner. The term "partnership" | ||
includes a syndicate,
group, pool, joint venture or other |
unincorporated organization, through
or by means of which | ||
any business, financial operation, or venture is carried
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on, and which is not, within the meaning of this Act, a | ||
trust or estate
or a corporation; and the term "partner" | ||
includes a member in such syndicate,
group, pool, joint | ||
venture or organization.
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The term "partnership" includes any entity, including | ||
a limited
liability company formed under the Illinois
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Limited Liability Company Act, classified as a partnership | ||
for federal income tax purposes.
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The term "partnership" does not include a syndicate, | ||
group, pool,
joint venture, or other unincorporated | ||
organization established for the
sole purpose of playing | ||
the Illinois State Lottery.
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(17) Part-year resident. The term "part-year resident" | ||
means an individual
who became a resident during the | ||
taxable year or ceased to be a resident
during the taxable | ||
year. Under Section 1501(a)(20)(A)(i) residence
commences | ||
with presence in this State for other than a temporary or | ||
transitory
purpose and ceases with absence from this State | ||
for other than a temporary or
transitory purpose. Under | ||
Section 1501(a)(20)(A)(ii) residence commences
with the | ||
establishment of domicile in this State and ceases with the
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establishment of domicile in another State.
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(18) Person. The term "person" shall be construed to | ||
mean and include
an individual, a trust, estate, |
partnership, association, firm, company,
corporation, | ||
limited liability company, or fiduciary. For purposes of | ||
Section
1301 and 1302 of this Act, a "person" means (i) an | ||
individual, (ii) a
corporation, (iii) an officer, agent, or | ||
employee of a
corporation, (iv) a member, agent or employee | ||
of a partnership, or (v)
a member,
manager, employee, | ||
officer, director, or agent of a limited liability company
| ||
who in such capacity commits an offense specified in | ||
Section 1301 and 1302.
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(18A) Records. The term "records" includes all data | ||
maintained by the
taxpayer, whether on paper, microfilm, | ||
microfiche, or any type of
machine-sensible data | ||
compilation.
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(19) Regulations. The term "regulations" includes | ||
rules promulgated and
forms prescribed by the Department.
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(20) Resident. The term "resident" means:
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(A) an individual (i) who is
in this State for | ||
other than a temporary or transitory purpose during the
| ||
taxable year; or (ii) who is domiciled in this State | ||
but is absent from
the State for a temporary or | ||
transitory purpose during the taxable year;
| ||
(B) The estate of a decedent who at his or her | ||
death was domiciled in
this
State;
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(C) A trust created by a will of a decedent who at | ||
his death was
domiciled
in this State; and
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(D) An irrevocable trust, the grantor of which was |
domiciled in this
State
at the time such trust became | ||
irrevocable. For purpose of this subparagraph,
a trust | ||
shall be considered irrevocable to the extent that the | ||
grantor is
not treated as the owner thereof under | ||
Sections 671 through 678 of the Internal
Revenue Code.
| ||
(21) Sales. The term "sales" means all gross receipts | ||
of the taxpayer
not allocated under Sections 301, 302 and | ||
303.
| ||
(22) State. The term "state" when applied to a | ||
jurisdiction other than
this State means any state of the | ||
United States, the District of Columbia,
the Commonwealth | ||
of Puerto Rico, any Territory or Possession of the United
| ||
States, and any foreign country, or any political | ||
subdivision of any of the
foregoing. For purposes of the | ||
foreign tax credit under Section 601, the
term "state" | ||
means any state of the United States, the District of | ||
Columbia,
the Commonwealth of Puerto Rico, and any | ||
territory or possession of the
United States, or any | ||
political subdivision of any of the foregoing,
effective | ||
for tax years ending on or after December 31, 1989.
| ||
(23) Taxable year. The term "taxable year" means the | ||
calendar year, or
the fiscal year ending during such | ||
calendar year, upon the basis of which
the base income is | ||
computed under this Act. "Taxable year" means, in the
case | ||
of a return made for a fractional part of a year under the | ||
provisions
of this Act, the period for which such return is |
made.
| ||
(24) Taxpayer. The term "taxpayer" means any person | ||
subject to the tax
imposed by this Act.
| ||
(25) International banking facility. The term | ||
international banking
facility shall have the same meaning | ||
as is set forth in the Illinois Banking
Act or as is set | ||
forth in the laws of the United States or regulations of
| ||
the Board of Governors of the Federal Reserve System.
| ||
(26) Income Tax Return Preparer.
| ||
(A) The term "income tax return preparer"
means any | ||
person who prepares for compensation, or who employs | ||
one or more
persons to prepare for compensation, any | ||
return of tax imposed by this Act
or any claim for | ||
refund of tax imposed by this Act. The preparation of a
| ||
substantial portion of a return or claim for refund | ||
shall be treated as
the preparation of that return or | ||
claim for refund.
| ||
(B) A person is not an income tax return preparer | ||
if all he or she does
is
| ||
(i) furnish typing, reproducing, or other | ||
mechanical assistance;
| ||
(ii) prepare returns or claims for refunds for | ||
the employer by whom he
or she is regularly and | ||
continuously employed;
| ||
(iii) prepare as a fiduciary returns or claims | ||
for refunds for any
person; or
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(iv) prepare claims for refunds for a taxpayer | ||
in response to any
notice
of deficiency issued to | ||
that taxpayer or in response to any waiver of
| ||
restriction after the commencement of an audit of | ||
that taxpayer or of another
taxpayer if a | ||
determination in the audit of the other taxpayer | ||
directly or
indirectly affects the tax liability | ||
of the taxpayer whose claims he or she is
| ||
preparing.
| ||
(27) Unitary business group. The term "unitary | ||
business group" means
a group of persons related through | ||
common ownership whose business activities
are integrated | ||
with, dependent upon and contribute to each other. The | ||
group
will not include those members whose business | ||
activity outside the United
States is 80% or more of any | ||
such member's total business activity; for
purposes of this | ||
paragraph and clause (a)(3)(B)(ii) of Section 304,
| ||
business
activity within the United States shall be | ||
measured by means of the factors
ordinarily applicable | ||
under subsections (a), (b), (c), (d), or (h)
of Section
304 | ||
except that, in the case of members ordinarily required to | ||
apportion
business income by means of the 3 factor formula | ||
of property, payroll and sales
specified in subsection (a) | ||
of Section 304, including the
formula as weighted in | ||
subsection (h) of Section 304, such members shall
not use | ||
the sales factor in the computation and the results of the |
property
and payroll factor computations of subsection (a) | ||
of Section 304 shall be
divided by 2 (by one if either
the | ||
property or payroll factor has a denominator of zero). The | ||
computation
required by the preceding sentence shall, in | ||
each case, involve the division of
the member's property, | ||
payroll, or revenue miles in the United States,
insurance | ||
premiums on property or risk in the United States, or | ||
financial
organization business income from sources within | ||
the United States, as the
case may be, by the respective | ||
worldwide figures for such items. Common
ownership in the | ||
case of corporations is the direct or indirect control or
| ||
ownership of more than 50% of the outstanding voting stock | ||
of the persons
carrying on unitary business activity. | ||
Unitary business activity can
ordinarily be illustrated | ||
where the activities of the members are: (1) in the
same | ||
general line (such as manufacturing, wholesaling, | ||
retailing of tangible
personal property, insurance, | ||
transportation or finance); or (2) are steps in a
| ||
vertically structured enterprise or process (such as the | ||
steps involved in the
production of natural resources, | ||
which might include exploration, mining,
refining, and | ||
marketing); and, in either instance, the members are | ||
functionally
integrated through the exercise of strong | ||
centralized management (where, for
example, authority over | ||
such matters as purchasing, financing, tax compliance,
| ||
product line, personnel, marketing and capital investment |
is not left to each
member).
In no event, however, will any
| ||
unitary business group include members
which are | ||
ordinarily required to apportion business income under | ||
different
subsections of Section 304 except that for tax | ||
years ending on or after
December 31, 1987 this prohibition | ||
shall not apply to a unitary business group
composed of one | ||
or more taxpayers all of which apportion business income
| ||
pursuant to subsection (b) of Section 304, or all of which | ||
apportion business
income pursuant to subsection (d) of | ||
Section 304, and a holding company of such
single-factor | ||
taxpayers (see definition of "financial organization" for | ||
rule
regarding holding companies of financial | ||
organizations). If a unitary business
group would, but for | ||
the preceding sentence, include members that are
| ||
ordinarily required to apportion business income under | ||
different subsections of
Section 304, then for each | ||
subsection of Section 304 for which there are two or
more | ||
members, there shall be a separate unitary business group | ||
composed of such
members. For purposes of the preceding two | ||
sentences, a member is "ordinarily
required to apportion | ||
business income" under a particular subsection of Section
| ||
304 if it would be required to use the apportionment method | ||
prescribed by such
subsection except for the fact that it | ||
derives business income solely from
Illinois. As used in | ||
this paragraph, the phrase "United States" means only the | ||
50 states and the District of Columbia, but does not |
include any territory or possession of the United States or | ||
any area over which the United States has asserted | ||
jurisdiction or claimed exclusive rights with respect to | ||
the exploration for or exploitation of natural resources.
| ||
If the unitary business group members' accounting | ||
periods differ,
the common parent's accounting period or, | ||
if there is no common parent, the
accounting period of the | ||
member that is expected to have, on a recurring basis,
the | ||
greatest Illinois income tax liability must be used to | ||
determine whether to
use the apportionment method provided | ||
in subsection (a) or subsection (h) of
Section 304. The
| ||
prohibition against membership in a unitary business group | ||
for taxpayers
ordinarily required to apportion income | ||
under different subsections of Section
304 does not apply | ||
to taxpayers required to apportion income under subsection
| ||
(a) and subsection (h) of Section
304. The provisions of | ||
this amendatory Act of 1998 apply to tax
years ending on or | ||
after December 31, 1998.
| ||
(28) Subchapter S corporation. The term "Subchapter S | ||
corporation"
means a corporation for which there is in | ||
effect an election under Section
1362 of the Internal | ||
Revenue Code, or for which there is 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.
| ||
(30) Foreign person. The term "foreign person" means |
any person who is a nonresident alien individual and any | ||
nonindividual entity, regardless of where created or | ||
organized, whose business activity outside the United | ||
States is 80% or more of the entity's total business | ||
activity.
| ||
(b) Other definitions.
| ||
(1) Words denoting number, gender, and so forth,
when | ||
used in this Act, where not otherwise distinctly expressed | ||
or manifestly
incompatible with the intent thereof:
| ||
(A) Words importing the singular include and apply | ||
to several persons,
parties or things;
| ||
(B) Words importing the plural include the | ||
singular; and
| ||
(C) Words importing the masculine gender include | ||
the feminine as well.
| ||
(2) "Company" or "association" as including successors | ||
and assigns. The
word "company" or "association", when used | ||
in reference to a corporation,
shall be deemed to embrace | ||
the words "successors and assigns of such company
or | ||
association", and in like manner as if these last-named | ||
words, or words
of similar import, were expressed.
| ||
(3) Other terms. Any term used in any Section of this | ||
Act with respect
to the application of, or in connection | ||
with, the provisions of any other
Section of this Act shall | ||
have the same meaning as in such other Section.
|
(Source: P.A. 95-233, eff. 8-16-07; 95-707, eff. 1-11-08.)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
|