Bill Amendment: IL SB1199 | 2019-2020 | 101st General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PROP TX-VETERANS-DISABILITY
Status: 2021-01-13 - Session Sine Die [SB1199 Detail]
Download: Illinois-2019-SB1199-House_Amendment_002.html
Bill Title: PROP TX-VETERANS-DISABILITY
Status: 2021-01-13 - Session Sine Die [SB1199 Detail]
Download: Illinois-2019-SB1199-House_Amendment_002.html
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1 | AMENDMENT TO SENATE BILL 1199
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2 | AMENDMENT NO. ______. Amend Senate Bill 1199, AS AMENDED, | ||||||
3 | by replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Department of Commerce and Economic | ||||||
6 | Opportunity Law of the
Civil Administrative Code of Illinois is | ||||||
7 | amended by changing Section 605-1025 as follows:
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8 | (20 ILCS 605/605-1025) | ||||||
9 | Sec. 605-1025. Data center investment. | ||||||
10 | (a) The Department shall issue certificates of exemption | ||||||
11 | from the Retailers' Occupation Tax Act, the Use Tax Act, the | ||||||
12 | Service Use Tax Act, and the Service Occupation Tax Act, all | ||||||
13 | locally-imposed retailers' occupation taxes administered and | ||||||
14 | collected by the Department, the Chicago non-titled Use Tax, | ||||||
15 | and a credit certification against the taxes imposed under | ||||||
16 | subsections (a) and (b) of Section 201 of the Illinois Income |
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1 | Tax Act to qualifying Illinois data centers. | ||||||
2 | (b) For taxable years beginning on or after January 1, | ||||||
3 | 2019, the Department shall award credits against the taxes | ||||||
4 | imposed under subsections (a) and (b) of Section 201 of the | ||||||
5 | Illinois Income Tax Act as provided in Section 229 of the | ||||||
6 | Illinois Income Tax Act. | ||||||
7 | (c) For purposes of this Section: | ||||||
8 | "Data center" means a facility: (1) whose primary | ||||||
9 | services are the storage, management, and processing of | ||||||
10 | digital data; and (2) that is used to house (i) computer | ||||||
11 | and network systems, including associated components such | ||||||
12 | as servers, network equipment and appliances, | ||||||
13 | telecommunications, and data storage systems, (ii) systems | ||||||
14 | for monitoring and managing infrastructure performance, | ||||||
15 | (iii) Internet-related equipment and services, (iv) data | ||||||
16 | communications connections, (v) environmental controls, | ||||||
17 | (vi) fire protection systems, and (vii) security systems | ||||||
18 | and services. | ||||||
19 | "Qualifying Illinois data center" means a new or | ||||||
20 | existing data center that: | ||||||
21 | (1) is located in the State of Illinois; | ||||||
22 | (2) in the case of an existing data center, made a | ||||||
23 | capital investment of at least $250,000,000 | ||||||
24 | collectively by the data center operator and the | ||||||
25 | tenants of the data center over the 60-month period | ||||||
26 | immediately prior to January 1, 2020 or committed to |
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1 | make a capital investment of at least $250,000,000 over | ||||||
2 | a 60-month period commencing before January 1, 2020 and | ||||||
3 | ending after January 1, 2020; or | ||||||
4 | (3) in the case of a new data center, or an | ||||||
5 | existing data center making an upgrade, makes a capital | ||||||
6 | investment of at least $250,000,000 over a 60-month | ||||||
7 | period beginning on or after January 1, 2020; and | ||||||
8 | (4) in the case of both existing and new data | ||||||
9 | centers, results in the creation of at least 20 | ||||||
10 | full-time or full-time equivalent new jobs over a | ||||||
11 | period of 60 months by the data center operator and the | ||||||
12 | tenants of the data center, collectively, associated | ||||||
13 | with the operation or maintenance of the data center; | ||||||
14 | those jobs must have a total compensation equal to or | ||||||
15 | greater than 120% of the average wage paid to full-time | ||||||
16 | employees in the county where the data center is | ||||||
17 | located, as determined by the U.S. Bureau of Labor | ||||||
18 | Statistics; and | ||||||
19 | (5) within 2 years 90 days after being placed in | ||||||
20 | service, certifies to the Department that it is carbon | ||||||
21 | neutral or has attained certification under one or more | ||||||
22 | of the following green building standards: | ||||||
23 | (A) BREEAM for New Construction or BREEAM | ||||||
24 | In-Use; | ||||||
25 | (B) ENERGY STAR; | ||||||
26 | (C) Envision; |
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1 | (D) ISO 50001-energy management; | ||||||
2 | (E) LEED for Building Design and Construction | ||||||
3 | or LEED for Operations and Maintenance; | ||||||
4 | (F) Green Globes for New Construction or Green | ||||||
5 | Globes for Existing Buildings; | ||||||
6 | (G) UL 3223; or | ||||||
7 | (H) an equivalent program approved by the | ||||||
8 | Department of Commerce and Economic Opportunity. | ||||||
9 | "Full-time equivalent job" means a job in which the new | ||||||
10 | employee works for the owner, operator, contractor, or | ||||||
11 | tenant of a data center or for a corporation under contract | ||||||
12 | with the owner, operator or tenant of a data center at a | ||||||
13 | rate of at least 35 hours per week. An owner, operator or | ||||||
14 | tenant who employs labor or services at a specific site or | ||||||
15 | facility under contract with another may declare one | ||||||
16 | full-time, permanent job for every 1,820 man hours worked | ||||||
17 | per year under that contract. Vacations, paid holidays, and | ||||||
18 | sick time are included in this computation. Overtime is not | ||||||
19 | considered a part of regular hours. | ||||||
20 | "Qualified tangible personal property" means: | ||||||
21 | electrical systems and equipment; climate control and | ||||||
22 | chilling equipment and systems; mechanical systems and | ||||||
23 | equipment; monitoring and secure systems; emergency | ||||||
24 | generators; hardware; computers; servers; data storage | ||||||
25 | devices; network connectivity equipment; racks; cabinets; | ||||||
26 | telecommunications cabling infrastructure; raised floor |
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1 | systems; peripheral components or systems; software; | ||||||
2 | mechanical, electrical, or plumbing systems; battery | ||||||
3 | systems; cooling systems and towers; temperature control | ||||||
4 | systems; other cabling; and other data center | ||||||
5 | infrastructure equipment and systems necessary to operate | ||||||
6 | qualified tangible personal property, including fixtures; | ||||||
7 | and component parts of any of the foregoing, including | ||||||
8 | installation, maintenance, repair, refurbishment, and | ||||||
9 | replacement of qualified tangible personal property to | ||||||
10 | generate, transform, transmit, distribute, or manage | ||||||
11 | electricity necessary to operate qualified tangible | ||||||
12 | personal property; and all other tangible personal | ||||||
13 | property that is essential to the operations of a computer | ||||||
14 | data center. "Qualified tangible personal property" also | ||||||
15 | includes building materials physically incorporated in to | ||||||
16 | the qualifying data center. | ||||||
17 | To document the exemption allowed under this Section, the | ||||||
18 | retailer must obtain from the purchaser a copy of the | ||||||
19 | certificate of eligibility issued by the Department. | ||||||
20 | (d) New and existing data centers seeking a certificate of | ||||||
21 | exemption for new or existing facilities shall apply to the | ||||||
22 | Department in the manner specified by the Department. The | ||||||
23 | Department shall determine the duration of the certificate of | ||||||
24 | exemption awarded under this Act. The duration of the | ||||||
25 | certificate of exemption may not exceed 20 calendar years. The | ||||||
26 | Department and any data center seeking the exemption, including |
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1 | a data center operator on behalf of itself and its tenants, | ||||||
2 | must enter into a memorandum of understanding that at a minimum | ||||||
3 | provides: | ||||||
4 | (1) the details for determining the amount of capital | ||||||
5 | investment to be made; | ||||||
6 | (2) the number of new jobs created; | ||||||
7 | (3) the timeline for achieving the capital investment | ||||||
8 | and new job goals; | ||||||
9 | (4) the repayment obligation should those goals not be | ||||||
10 | achieved and any conditions under which repayment by the | ||||||
11 | qualifying data center or data center tenant claiming the | ||||||
12 | exemption will be required; | ||||||
13 | (5) the duration of the exemption; and | ||||||
14 | (6) other provisions as deemed necessary by the | ||||||
15 | Department. | ||||||
16 | (e) Beginning July 1, 2021, and each year thereafter, the | ||||||
17 | Department shall annually report to the Governor and the | ||||||
18 | General Assembly on the outcomes and effectiveness of Public | ||||||
19 | Act 101-31 that shall include the following: | ||||||
20 | (1) the name of each recipient business; | ||||||
21 | (2) the location of the project; | ||||||
22 | (3) the estimated value of the credit; | ||||||
23 | (4) the number of new jobs and, if applicable, retained | ||||||
24 | jobs pledged as a result of the project; and | ||||||
25 | (5) whether or not the project is located in an | ||||||
26 | underserved area. |
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1 | (f) New and existing data centers seeking a certificate of | ||||||
2 | exemption related to the rehabilitation or construction of data | ||||||
3 | centers in the State shall require the contractor and all | ||||||
4 | subcontractors to comply with the requirements of Section 30-22 | ||||||
5 | of the Illinois Procurement Code as they apply to responsible | ||||||
6 | bidders and to present satisfactory evidence of that compliance | ||||||
7 | to the Department. | ||||||
8 | (g) New and existing data centers seeking a certificate of | ||||||
9 | exemption for the rehabilitation or construction of data | ||||||
10 | centers in the State shall require the contractor to enter into | ||||||
11 | a project labor agreement approved by the Department. | ||||||
12 | (h) Any qualifying data center issued a certificate of | ||||||
13 | exemption under this Section must annually report to the | ||||||
14 | Department the total data center tax benefits that are received | ||||||
15 | by the business. Reports are due no later than May 31 of each | ||||||
16 | year and shall cover the previous calendar year. The first | ||||||
17 | report is for the 2019 calendar year and is due no later than | ||||||
18 | May 31, 2020. | ||||||
19 | To the extent that a business issued a certificate of | ||||||
20 | exemption under this Section has obtained an Enterprise Zone | ||||||
21 | Building Materials Exemption Certificate or a High Impact | ||||||
22 | Business Building Materials Exemption Certificate, no | ||||||
23 | additional reporting for those building materials exemption | ||||||
24 | benefits is required under this Section. | ||||||
25 | Failure to file a report under this subsection (h) may | ||||||
26 | result in suspension or revocation of the certificate of |
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1 | exemption. Factors to be considered in determining whether a | ||||||
2 | data center certificate of exemption shall be suspended or | ||||||
3 | revoked include, but are not limited to, prior compliance with | ||||||
4 | the reporting requirements, cooperation in discontinuing and | ||||||
5 | correcting violations, the extent of the violation, and whether | ||||||
6 | the violation was willful or inadvertent. | ||||||
7 | (i) The Department shall not issue any new certificates of | ||||||
8 | exemption under the provisions of this Section after July 1, | ||||||
9 | 2029. This sunset shall not affect any existing certificates of | ||||||
10 | exemption in effect on July 1, 2029.
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11 | (j) The Department shall adopt rules to implement and | ||||||
12 | administer this Section. | ||||||
13 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19.)
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14 | Section 10. The Brownfields Redevelopment and Intermodal | ||||||
15 | Promotion Act is amended by changing Section 3-20 as follows:
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16 | (20 ILCS 607/3-20)
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17 | Sec. 3-20. South Suburban Brownfields Redevelopment Fund; | ||||||
18 | eligible projects. In State fiscal years 2015 through 2022 | ||||||
19 | 2021 , all moneys in the South Suburban Brownfields | ||||||
20 | Redevelopment Fund shall be held solely to fund eligible | ||||||
21 | projects undertaken pursuant to the provisions of Section 3-35 | ||||||
22 | of this Act and performed either directly by Cook County | ||||||
23 | through a development agreement with the Department, by an | ||||||
24 | entity designated by Cook County through a development |
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1 | agreement with the Department to perform specific tasks, or by | ||||||
2 | an Eligible Developer or an Eligible Employer through a | ||||||
3 | development agreement. All Eligible Projects are subject to | ||||||
4 | review and approval by the Managing Partner and by the | ||||||
5 | Department. The life span of the Fund may be extended past 2026 | ||||||
6 | by law.
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7 | (Source: P.A. 101-275, eff. 8-9-19.)
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8 | Section 15. The Illinois Income Tax Act is amended by | ||||||
9 | changing Section 203 as follows:
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10 | (35 ILCS 5/203) (from Ch. 120, par. 2-203) | ||||||
11 | Sec. 203. Base income defined. | ||||||
12 | (a) Individuals. | ||||||
13 | (1) In general. In the case of an individual, base | ||||||
14 | income means an
amount equal to the taxpayer's adjusted | ||||||
15 | gross income for the taxable
year as modified by paragraph | ||||||
16 | (2). | ||||||
17 | (2) Modifications. The adjusted gross income referred | ||||||
18 | to in
paragraph (1) shall be modified by adding thereto the | ||||||
19 | sum of the
following amounts: | ||||||
20 | (A) An amount equal to all amounts paid or accrued | ||||||
21 | to the taxpayer
as interest or dividends during the | ||||||
22 | taxable year to the extent excluded
from gross income | ||||||
23 | in the computation of adjusted gross income, except | ||||||
24 | stock
dividends of qualified public utilities |
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1 | described in Section 305(e) of the
Internal Revenue | ||||||
2 | Code; | ||||||
3 | (B) An amount equal to the amount of tax imposed by | ||||||
4 | this Act to the
extent deducted from gross income in | ||||||
5 | the computation of adjusted gross
income for the | ||||||
6 | taxable year; | ||||||
7 | (C) An amount equal to the amount received during | ||||||
8 | the taxable year
as a recovery or refund of real | ||||||
9 | property taxes paid with respect to the
taxpayer's | ||||||
10 | principal residence under the Revenue Act of
1939 and | ||||||
11 | for which a deduction was previously taken under | ||||||
12 | subparagraph (L) of
this paragraph (2) prior to July 1, | ||||||
13 | 1991, the retrospective application date of
Article 4 | ||||||
14 | of Public Act 87-17. In the case of multi-unit or | ||||||
15 | multi-use
structures and farm dwellings, the taxes on | ||||||
16 | the taxpayer's principal residence
shall be that | ||||||
17 | portion of the total taxes for the entire property | ||||||
18 | which is
attributable to such principal residence; | ||||||
19 | (D) An amount equal to the amount of the capital | ||||||
20 | gain deduction
allowable under the Internal Revenue | ||||||
21 | Code, to the extent deducted from gross
income in the | ||||||
22 | computation of adjusted gross income; | ||||||
23 | (D-5) An amount, to the extent not included in | ||||||
24 | adjusted gross income,
equal to the amount of money | ||||||
25 | withdrawn by the taxpayer in the taxable year from
a | ||||||
26 | medical care savings account and the interest earned on |
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1 | the account in the
taxable year of a withdrawal | ||||||
2 | pursuant to subsection (b) of Section 20 of the
Medical | ||||||
3 | Care Savings Account Act or subsection (b) of Section | ||||||
4 | 20 of the
Medical Care Savings Account Act of 2000; | ||||||
5 | (D-10) For taxable years ending after December 31, | ||||||
6 | 1997, an
amount equal to any eligible remediation costs | ||||||
7 | that the individual
deducted in computing adjusted | ||||||
8 | gross income and for which the
individual claims a | ||||||
9 | credit under subsection (l) of Section 201; | ||||||
10 | (D-15) For taxable years 2001 and thereafter, an | ||||||
11 | amount equal to the
bonus depreciation deduction taken | ||||||
12 | on the taxpayer's federal income tax return for the | ||||||
13 | taxable
year under subsection (k) of Section 168 of the | ||||||
14 | Internal Revenue Code; | ||||||
15 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
16 | or otherwise disposes of property for which the | ||||||
17 | taxpayer was required in any taxable year to
make an | ||||||
18 | addition modification under subparagraph (D-15), then | ||||||
19 | an amount equal
to the aggregate amount of the | ||||||
20 | deductions taken in all taxable
years under | ||||||
21 | subparagraph (Z) with respect to that property. | ||||||
22 | If the taxpayer continues to own property through | ||||||
23 | the last day of the last tax year for which the | ||||||
24 | taxpayer may claim a depreciation deduction for | ||||||
25 | federal income tax purposes and for which the taxpayer | ||||||
26 | was allowed in any taxable year to make a subtraction |
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1 | modification under subparagraph (Z), then an amount | ||||||
2 | equal to that subtraction modification.
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3 | The taxpayer is required to make the addition | ||||||
4 | modification under this
subparagraph
only once with | ||||||
5 | respect to any one piece of property; | ||||||
6 | (D-17) An amount equal to the amount otherwise | ||||||
7 | allowed as a deduction in computing base income for | ||||||
8 | interest paid, accrued, or incurred, directly or | ||||||
9 | indirectly, (i) for taxable years ending on or after | ||||||
10 | December 31, 2004, to a foreign person who would be a | ||||||
11 | member of the same unitary business group but for the | ||||||
12 | fact that foreign person's business activity outside | ||||||
13 | the United States is 80% or more of the foreign | ||||||
14 | person's total business activity and (ii) for taxable | ||||||
15 | years ending on or after December 31, 2008, to a person | ||||||
16 | who would be a member of the same unitary business | ||||||
17 | group but for the fact that the person is prohibited | ||||||
18 | under Section 1501(a)(27) from being included in the | ||||||
19 | unitary business group because he or she is ordinarily | ||||||
20 | required to apportion business income under different | ||||||
21 | subsections of Section 304. The addition modification | ||||||
22 | required by this subparagraph shall be reduced to the | ||||||
23 | extent that dividends were included in base income of | ||||||
24 | the unitary group for the same taxable year and | ||||||
25 | received by the taxpayer or by a member of the | ||||||
26 | taxpayer's unitary business group (including amounts |
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1 | included in gross income under Sections 951 through 964 | ||||||
2 | of the Internal Revenue Code and amounts included in | ||||||
3 | gross income under Section 78 of the Internal Revenue | ||||||
4 | Code) with respect to the stock of the same person to | ||||||
5 | whom the interest was paid, accrued, or incurred. | ||||||
6 | This paragraph shall not apply to the following:
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7 | (i) an item of interest paid, accrued, or | ||||||
8 | incurred, directly or indirectly, to a person who | ||||||
9 | is subject in a foreign country or state, other | ||||||
10 | than a state which requires mandatory unitary | ||||||
11 | reporting, to a tax on or measured by net income | ||||||
12 | with respect to such interest; or | ||||||
13 | (ii) an item of interest paid, accrued, or | ||||||
14 | incurred, directly or indirectly, to a person if | ||||||
15 | the taxpayer can establish, based on a | ||||||
16 | preponderance of the evidence, both of the | ||||||
17 | following: | ||||||
18 | (a) the person, during the same taxable | ||||||
19 | year, paid, accrued, or incurred, the interest | ||||||
20 | to a person that is not a related member, and | ||||||
21 | (b) the transaction giving rise to the | ||||||
22 | interest expense between the taxpayer and the | ||||||
23 | person did not have as a principal purpose the | ||||||
24 | avoidance of Illinois income tax, and is paid | ||||||
25 | pursuant to a contract or agreement that | ||||||
26 | reflects an arm's-length interest rate and |
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1 | terms; or
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2 | (iii) the taxpayer can establish, based on | ||||||
3 | clear and convincing evidence, that the interest | ||||||
4 | paid, accrued, or incurred relates to a contract or | ||||||
5 | agreement entered into at arm's-length rates and | ||||||
6 | terms and the principal purpose for the payment is | ||||||
7 | not federal or Illinois tax avoidance; or
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8 | (iv) an item of interest paid, accrued, or | ||||||
9 | incurred, directly or indirectly, to a person if | ||||||
10 | the taxpayer establishes by clear and convincing | ||||||
11 | evidence that the adjustments are unreasonable; or | ||||||
12 | if the taxpayer and the Director agree in writing | ||||||
13 | to the application or use of an alternative method | ||||||
14 | of apportionment under Section 304(f).
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15 | Nothing in this subsection shall preclude the | ||||||
16 | Director from making any other adjustment | ||||||
17 | otherwise allowed under Section 404 of this Act for | ||||||
18 | any tax year beginning after the effective date of | ||||||
19 | this amendment provided such adjustment is made | ||||||
20 | pursuant to regulation adopted by the Department | ||||||
21 | and such regulations provide methods and standards | ||||||
22 | by which the Department will utilize its authority | ||||||
23 | under Section 404 of this Act;
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24 | (D-18) An amount equal to the amount of intangible | ||||||
25 | expenses and costs otherwise allowed as a deduction in | ||||||
26 | computing base income, and that were paid, accrued, or |
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1 | incurred, directly or indirectly, (i) for taxable | ||||||
2 | years ending on or after December 31, 2004, to a | ||||||
3 | foreign person who would be a member of the same | ||||||
4 | unitary business group but for the fact that the | ||||||
5 | foreign person's business activity outside the United | ||||||
6 | States is 80% or more of that person's total business | ||||||
7 | activity and (ii) for taxable years ending on or after | ||||||
8 | December 31, 2008, to a person who would be a member of | ||||||
9 | the same unitary business group but for the fact that | ||||||
10 | the person is prohibited under Section 1501(a)(27) | ||||||
11 | from being included in the unitary business group | ||||||
12 | because he or she is ordinarily required to apportion | ||||||
13 | business income under different subsections of Section | ||||||
14 | 304. The addition modification required by this | ||||||
15 | subparagraph shall be reduced to the extent that | ||||||
16 | dividends were included in base income of the unitary | ||||||
17 | group for the same taxable year and received by the | ||||||
18 | taxpayer or by a member of the taxpayer's unitary | ||||||
19 | business group (including amounts included in gross | ||||||
20 | income under Sections 951 through 964 of the Internal | ||||||
21 | Revenue Code and amounts included in gross income under | ||||||
22 | Section 78 of the Internal Revenue Code) with respect | ||||||
23 | to the stock of the same person to whom the intangible | ||||||
24 | expenses and costs were directly or indirectly paid, | ||||||
25 | incurred, or accrued. The preceding sentence does not | ||||||
26 | apply to the extent that the same dividends caused a |
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1 | reduction to the addition modification required under | ||||||
2 | Section 203(a)(2)(D-17) of this Act. As used in this | ||||||
3 | subparagraph, the term "intangible expenses and costs" | ||||||
4 | includes (1) expenses, losses, and costs for, or | ||||||
5 | related to, the direct or indirect acquisition, use, | ||||||
6 | maintenance or management, ownership, sale, exchange, | ||||||
7 | or any other disposition of intangible property; (2) | ||||||
8 | losses incurred, directly or indirectly, from | ||||||
9 | factoring transactions or discounting transactions; | ||||||
10 | (3) royalty, patent, technical, and copyright fees; | ||||||
11 | (4) licensing fees; and (5) other similar expenses and | ||||||
12 | costs.
For purposes of this subparagraph, "intangible | ||||||
13 | property" includes patents, patent applications, trade | ||||||
14 | names, trademarks, service marks, copyrights, mask | ||||||
15 | works, trade secrets, and similar types of intangible | ||||||
16 | assets. | ||||||
17 | This paragraph shall not apply to the following: | ||||||
18 | (i) any item of intangible expenses or costs | ||||||
19 | paid, accrued, or incurred, directly or | ||||||
20 | indirectly, from a transaction with a person who is | ||||||
21 | subject in a foreign country or state, other than a | ||||||
22 | state which requires mandatory unitary reporting, | ||||||
23 | to a tax on or measured by net income with respect | ||||||
24 | to such item; or | ||||||
25 | (ii) any item of intangible expense or cost | ||||||
26 | paid, accrued, or incurred, directly or |
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1 | indirectly, if the taxpayer can establish, based | ||||||
2 | on a preponderance of the evidence, both of the | ||||||
3 | following: | ||||||
4 | (a) the person during the same taxable | ||||||
5 | year paid, accrued, or incurred, the | ||||||
6 | intangible expense or cost to a person that is | ||||||
7 | not a related member, and | ||||||
8 | (b) the transaction giving rise to the | ||||||
9 | intangible expense or cost between the | ||||||
10 | taxpayer and the person did not have as a | ||||||
11 | principal purpose the avoidance of Illinois | ||||||
12 | income tax, and is paid pursuant to a contract | ||||||
13 | or agreement that reflects arm's-length terms; | ||||||
14 | or | ||||||
15 | (iii) any item of intangible expense or cost | ||||||
16 | paid, accrued, or incurred, directly or | ||||||
17 | indirectly, from a transaction with a person if the | ||||||
18 | taxpayer establishes by clear and convincing | ||||||
19 | evidence, that the adjustments are unreasonable; | ||||||
20 | or if the taxpayer and the Director agree in | ||||||
21 | writing to the application or use of an alternative | ||||||
22 | method of apportionment under Section 304(f);
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23 | Nothing in this subsection shall preclude the | ||||||
24 | Director from making any other adjustment | ||||||
25 | otherwise allowed under Section 404 of this Act for | ||||||
26 | any tax year beginning after the effective date of |
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1 | this amendment provided such adjustment is made | ||||||
2 | pursuant to regulation adopted by the Department | ||||||
3 | and such regulations provide methods and standards | ||||||
4 | by which the Department will utilize its authority | ||||||
5 | under Section 404 of this Act;
| ||||||
6 | (D-19) For taxable years ending on or after | ||||||
7 | December 31, 2008, an amount equal to the amount of | ||||||
8 | insurance premium expenses and costs otherwise allowed | ||||||
9 | as a deduction in computing base income, and that were | ||||||
10 | paid, accrued, or incurred, directly or indirectly, to | ||||||
11 | a person who would be a member of the same unitary | ||||||
12 | business group but for the fact that the person is | ||||||
13 | prohibited under Section 1501(a)(27) from being | ||||||
14 | included in the unitary business group because he or | ||||||
15 | she is ordinarily required to apportion business | ||||||
16 | income under different subsections of Section 304. The | ||||||
17 | addition modification required by this subparagraph | ||||||
18 | shall be reduced to the extent that dividends were | ||||||
19 | included in base income of the unitary group for the | ||||||
20 | same taxable year and received by the taxpayer or by a | ||||||
21 | member of the taxpayer's unitary business group | ||||||
22 | (including amounts included in gross income under | ||||||
23 | Sections 951 through 964 of the Internal Revenue Code | ||||||
24 | and amounts included in gross income under Section 78 | ||||||
25 | of the Internal Revenue Code) with respect to the stock | ||||||
26 | of the same person to whom the premiums and costs were |
| |||||||
| |||||||
1 | directly or indirectly paid, incurred, or accrued. The | ||||||
2 | preceding sentence does not apply to the extent that | ||||||
3 | the same dividends caused a reduction to the addition | ||||||
4 | modification required under Section 203(a)(2)(D-17) or | ||||||
5 | Section 203(a)(2)(D-18) of this Act ; .
| ||||||
6 | (D-20) For taxable years beginning on or after | ||||||
7 | January 1,
2002 and ending on or before December 31, | ||||||
8 | 2006, in
the
case of a distribution from a qualified | ||||||
9 | tuition program under Section 529 of
the Internal | ||||||
10 | Revenue Code, other than (i) a distribution from a | ||||||
11 | College Savings
Pool created under Section 16.5 of the | ||||||
12 | State Treasurer Act or (ii) a
distribution from the | ||||||
13 | Illinois Prepaid Tuition Trust Fund, an amount equal to
| ||||||
14 | the amount excluded from gross income under Section | ||||||
15 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
16 | January 1, 2007, in the case of a distribution from a | ||||||
17 | qualified tuition program under Section 529 of the | ||||||
18 | Internal Revenue Code, other than (i) a distribution | ||||||
19 | from a College Savings Pool created under Section 16.5 | ||||||
20 | of the State Treasurer Act, (ii) a distribution from | ||||||
21 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
22 | distribution from a qualified tuition program under | ||||||
23 | Section 529 of the Internal Revenue Code that (I) | ||||||
24 | adopts and determines that its offering materials | ||||||
25 | comply with the College Savings Plans Network's | ||||||
26 | disclosure principles and (II) has made reasonable |
| |||||||
| |||||||
1 | efforts to inform in-state residents of the existence | ||||||
2 | of in-state qualified tuition programs by informing | ||||||
3 | Illinois residents directly and, where applicable, to | ||||||
4 | inform financial intermediaries distributing the | ||||||
5 | program to inform in-state residents of the existence | ||||||
6 | of in-state qualified tuition programs at least | ||||||
7 | annually, an amount equal to the amount excluded from | ||||||
8 | gross income under Section 529(c)(3)(B). | ||||||
9 | For the purposes of this subparagraph (D-20), a | ||||||
10 | qualified tuition program has made reasonable efforts | ||||||
11 | if it makes disclosures (which may use the term | ||||||
12 | "in-state program" or "in-state plan" and need not | ||||||
13 | specifically refer to Illinois or its qualified | ||||||
14 | programs by name) (i) directly to prospective | ||||||
15 | participants in its offering materials or makes a | ||||||
16 | public disclosure, such as a website posting; and (ii) | ||||||
17 | where applicable, to intermediaries selling the | ||||||
18 | out-of-state program in the same manner that the | ||||||
19 | out-of-state program distributes its offering | ||||||
20 | materials; | ||||||
21 | (D-20.5) For taxable years beginning on or after | ||||||
22 | January 1, 2018, in the case of a distribution from a | ||||||
23 | qualified ABLE program under Section 529A of the | ||||||
24 | Internal Revenue Code, other than a distribution from a | ||||||
25 | qualified ABLE program created under Section 16.6 of | ||||||
26 | the State Treasurer Act, an amount equal to the amount |
| |||||||
| |||||||
1 | excluded from gross income under Section 529A(c)(1)(B) | ||||||
2 | of the Internal Revenue Code; | ||||||
3 | (D-21) For taxable years beginning on or after | ||||||
4 | January 1, 2007, in the case of transfer of moneys from | ||||||
5 | a qualified tuition program under Section 529 of the | ||||||
6 | Internal Revenue Code that is administered by the State | ||||||
7 | to an out-of-state program, an amount equal to the | ||||||
8 | amount of moneys previously deducted from base income | ||||||
9 | under subsection (a)(2)(Y) of this Section; | ||||||
10 | (D-21.5) For taxable years beginning on or after | ||||||
11 | January 1, 2018, in the case of the transfer of moneys | ||||||
12 | from a qualified tuition program under Section 529 or a | ||||||
13 | qualified ABLE program under Section 529A of the | ||||||
14 | Internal Revenue Code that is administered by this | ||||||
15 | State to an ABLE account established under an | ||||||
16 | out-of-state ABLE account program, an amount equal to | ||||||
17 | the contribution component of the transferred amount | ||||||
18 | that was previously deducted from base income under | ||||||
19 | subsection (a)(2)(Y) or subsection (a)(2)(HH) of this | ||||||
20 | Section; | ||||||
21 | (D-22) For taxable years beginning on or after | ||||||
22 | January 1, 2009, and prior to January 1, 2018, in the | ||||||
23 | case of a nonqualified withdrawal or refund of moneys | ||||||
24 | from a qualified tuition program under Section 529 of | ||||||
25 | the Internal Revenue Code administered by the State | ||||||
26 | that is not used for qualified expenses at an eligible |
| |||||||
| |||||||
1 | education institution, an amount equal to the | ||||||
2 | contribution component of the nonqualified withdrawal | ||||||
3 | or refund that was previously deducted from base income | ||||||
4 | under subsection (a)(2)(y) of this Section, provided | ||||||
5 | that the withdrawal or refund did not result from the | ||||||
6 | beneficiary's death or disability. For taxable years | ||||||
7 | beginning on or after January 1, 2018: (1) in the case | ||||||
8 | of a nonqualified withdrawal or refund, as defined | ||||||
9 | under Section
16.5 of the State Treasurer Act, of | ||||||
10 | moneys from a qualified tuition program under Section | ||||||
11 | 529 of the Internal Revenue Code administered by the | ||||||
12 | State, an amount equal to the contribution component of | ||||||
13 | the nonqualified withdrawal or refund that was | ||||||
14 | previously deducted from base
income under subsection | ||||||
15 | (a)(2)(Y) of this Section, and (2) in the case of a | ||||||
16 | nonqualified withdrawal or refund from a qualified | ||||||
17 | ABLE program under Section 529A of the Internal Revenue | ||||||
18 | Code administered by the State that is not used for | ||||||
19 | qualified disability expenses, an amount equal to the | ||||||
20 | contribution component of the nonqualified withdrawal | ||||||
21 | or refund that was previously deducted from base income | ||||||
22 | under subsection (a)(2)(HH) of this Section; | ||||||
23 | (D-23) An amount equal to the credit allowable to | ||||||
24 | the taxpayer under Section 218(a) of this Act, | ||||||
25 | determined without regard to Section 218(c) of this | ||||||
26 | Act; |
| |||||||
| |||||||
1 | (D-24) For taxable years ending on or after | ||||||
2 | December 31, 2017, an amount equal to the deduction | ||||||
3 | allowed under Section 199 of the Internal Revenue Code | ||||||
4 | for the taxable year; | ||||||
5 | and by deducting from the total so obtained the
sum of the | ||||||
6 | following amounts: | ||||||
7 | (E) For taxable years ending before December 31, | ||||||
8 | 2001,
any amount included in such total in respect of | ||||||
9 | any compensation
(including but not limited to any | ||||||
10 | compensation paid or accrued to a
serviceman while a | ||||||
11 | prisoner of war or missing in action) paid to a | ||||||
12 | resident
by reason of being on active duty in the Armed | ||||||
13 | Forces of the United States
and in respect of any | ||||||
14 | compensation paid or accrued to a resident who as a
| ||||||
15 | governmental employee was a prisoner of war or missing | ||||||
16 | in action, and in
respect of any compensation paid to a | ||||||
17 | resident in 1971 or thereafter for
annual training | ||||||
18 | performed pursuant to Sections 502 and 503, Title 32,
| ||||||
19 | United States Code as a member of the Illinois National | ||||||
20 | Guard or, beginning with taxable years ending on or | ||||||
21 | after December 31, 2007, the National Guard of any | ||||||
22 | other state.
For taxable years ending on or after | ||||||
23 | December 31, 2001, any amount included in
such total in | ||||||
24 | respect of any compensation (including but not limited | ||||||
25 | to any
compensation paid or accrued to a serviceman | ||||||
26 | while a prisoner of war or missing
in action) paid to a |
| |||||||
| |||||||
1 | resident by reason of being a member of any component | ||||||
2 | of
the Armed Forces of the United States and in respect | ||||||
3 | of any compensation paid
or accrued to a resident who | ||||||
4 | as a governmental employee was a prisoner of war
or | ||||||
5 | missing in action, and in respect of any compensation | ||||||
6 | paid to a resident in
2001 or thereafter by reason of | ||||||
7 | being a member of the Illinois National Guard or, | ||||||
8 | beginning with taxable years ending on or after | ||||||
9 | December 31, 2007, the National Guard of any other | ||||||
10 | state.
The provisions of this subparagraph (E) are | ||||||
11 | exempt
from the provisions of Section 250; | ||||||
12 | (F) An amount equal to all amounts included in such | ||||||
13 | total pursuant
to the provisions of Sections 402(a), | ||||||
14 | 402(c), 403(a), 403(b), 406(a), 407(a),
and 408 of the | ||||||
15 | Internal Revenue Code, or included in such total as
| ||||||
16 | distributions under the provisions of any retirement | ||||||
17 | or disability plan for
employees of any governmental | ||||||
18 | agency or unit, or retirement payments to
retired | ||||||
19 | partners, which payments are excluded in computing net | ||||||
20 | earnings
from self employment by Section 1402 of the | ||||||
21 | Internal Revenue Code and
regulations adopted pursuant | ||||||
22 | thereto; | ||||||
23 | (G) The valuation limitation amount; | ||||||
24 | (H) An amount equal to the amount of any tax | ||||||
25 | imposed by this Act
which was refunded to the taxpayer | ||||||
26 | and included in such total for the
taxable year; |
| |||||||
| |||||||
1 | (I) An amount equal to all amounts included in such | ||||||
2 | total pursuant
to the provisions of Section 111 of the | ||||||
3 | Internal Revenue Code as a
recovery of items previously | ||||||
4 | deducted from adjusted gross income in the
computation | ||||||
5 | of taxable income; | ||||||
6 | (J) An amount equal to those dividends included in | ||||||
7 | such total which were
paid by a corporation which | ||||||
8 | conducts business operations in a River Edge | ||||||
9 | Redevelopment Zone or zones created under the River | ||||||
10 | Edge Redevelopment Zone Act, and conducts
| ||||||
11 | substantially all of its operations in a River Edge | ||||||
12 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
13 | exempt from the provisions of Section 250; | ||||||
14 | (K) An amount equal to those dividends included in | ||||||
15 | such total that
were paid by a corporation that | ||||||
16 | conducts business operations in a federally
designated | ||||||
17 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
18 | High Impact
Business located in Illinois; provided | ||||||
19 | that dividends eligible for the
deduction provided in | ||||||
20 | subparagraph (J) of paragraph (2) of this subsection
| ||||||
21 | shall not be eligible for the deduction provided under | ||||||
22 | this subparagraph
(K); | ||||||
23 | (L) For taxable years ending after December 31, | ||||||
24 | 1983, an amount equal to
all social security benefits | ||||||
25 | and railroad retirement benefits included in
such | ||||||
26 | total pursuant to Sections 72(r) and 86 of the Internal |
| |||||||
| |||||||
1 | Revenue Code; | ||||||
2 | (M) With the exception of any amounts subtracted | ||||||
3 | under subparagraph
(N), an amount equal to the sum of | ||||||
4 | all amounts disallowed as
deductions by (i) Sections | ||||||
5 | 171(a)(2) , and 265(a)(2) of the Internal Revenue Code, | ||||||
6 | and all amounts of expenses allocable
to interest and | ||||||
7 | disallowed as deductions by Section 265(a)(1) of the | ||||||
8 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
9 | ending on or after August 13, 1999, Sections 171(a)(2), | ||||||
10 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
11 | Code, plus, for taxable years ending on or after | ||||||
12 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
13 | Revenue Code and, for taxable years ending on or after | ||||||
14 | December 31, 2008, any amount included in gross income | ||||||
15 | under Section 87 of the Internal Revenue Code; the | ||||||
16 | provisions of this
subparagraph are exempt from the | ||||||
17 | provisions of Section 250; | ||||||
18 | (N) An amount equal to all amounts included in such | ||||||
19 | total which are
exempt from taxation by this State | ||||||
20 | either by reason of its statutes or
Constitution
or by | ||||||
21 | reason of the Constitution, treaties or statutes of the | ||||||
22 | United States;
provided that, in the case of any | ||||||
23 | statute of this State that exempts income
derived from | ||||||
24 | bonds or other obligations from the tax imposed under | ||||||
25 | this Act,
the amount exempted shall be the interest net | ||||||
26 | of bond premium amortization; |
| |||||||
| |||||||
1 | (O) An amount equal to any contribution made to a | ||||||
2 | job training
project established pursuant to the Tax | ||||||
3 | Increment Allocation Redevelopment Act; | ||||||
4 | (P) An amount equal to the amount of the deduction | ||||||
5 | used to compute the
federal income tax credit for | ||||||
6 | restoration of substantial amounts held under
claim of | ||||||
7 | right for the taxable year pursuant to Section 1341 of | ||||||
8 | the
Internal Revenue Code or of any itemized deduction | ||||||
9 | taken from adjusted gross income in the computation of | ||||||
10 | taxable income for restoration of substantial amounts | ||||||
11 | held under claim of right for the taxable year; | ||||||
12 | (Q) An amount equal to any amounts included in such | ||||||
13 | total, received by
the taxpayer as an acceleration in | ||||||
14 | the payment of life, endowment or annuity
benefits in | ||||||
15 | advance of the time they would otherwise be payable as | ||||||
16 | an indemnity
for a terminal illness; | ||||||
17 | (R) An amount equal to the amount of any federal or | ||||||
18 | State bonus paid
to veterans of the Persian Gulf War; | ||||||
19 | (S) An amount, to the extent included in adjusted | ||||||
20 | gross income, equal
to the amount of a contribution | ||||||
21 | made in the taxable year on behalf of the
taxpayer to a | ||||||
22 | medical care savings account established under the | ||||||
23 | Medical Care
Savings Account Act or the Medical Care | ||||||
24 | Savings Account Act of 2000 to the
extent the | ||||||
25 | contribution is accepted by the account
administrator | ||||||
26 | as provided in that Act; |
| |||||||
| |||||||
1 | (T) An amount, to the extent included in adjusted | ||||||
2 | gross income, equal to
the amount of interest earned in | ||||||
3 | the taxable year on a medical care savings
account | ||||||
4 | established under the Medical Care Savings Account Act | ||||||
5 | or the Medical
Care Savings Account Act of 2000 on | ||||||
6 | behalf of the
taxpayer, other than interest added | ||||||
7 | pursuant to item (D-5) of this paragraph
(2); | ||||||
8 | (U) For one taxable year beginning on or after | ||||||
9 | January 1,
1994, an
amount equal to the total amount of | ||||||
10 | tax imposed and paid under subsections (a)
and (b) of | ||||||
11 | Section 201 of this Act on grant amounts received by | ||||||
12 | the taxpayer
under the Nursing Home Grant Assistance | ||||||
13 | Act during the taxpayer's taxable years
1992 and 1993; | ||||||
14 | (V) Beginning with tax years ending on or after | ||||||
15 | December 31, 1995 and
ending with tax years ending on | ||||||
16 | or before December 31, 2004, an amount equal to
the | ||||||
17 | amount paid by a taxpayer who is a
self-employed | ||||||
18 | taxpayer, a partner of a partnership, or a
shareholder | ||||||
19 | in a Subchapter S corporation for health insurance or | ||||||
20 | long-term
care insurance for that taxpayer or that | ||||||
21 | taxpayer's spouse or dependents, to
the extent that the | ||||||
22 | amount paid for that health insurance or long-term care
| ||||||
23 | insurance may be deducted under Section 213 of the | ||||||
24 | Internal Revenue Code, has not been deducted on the | ||||||
25 | federal income tax return of the taxpayer,
and does not | ||||||
26 | exceed the taxable income attributable to that |
| |||||||
| |||||||
1 | taxpayer's income,
self-employment income, or | ||||||
2 | Subchapter S corporation income; except that no
| ||||||
3 | deduction shall be allowed under this item (V) if the | ||||||
4 | taxpayer is eligible to
participate in any health | ||||||
5 | insurance or long-term care insurance plan of an
| ||||||
6 | employer of the taxpayer or the taxpayer's
spouse. The | ||||||
7 | amount of the health insurance and long-term care | ||||||
8 | insurance
subtracted under this item (V) shall be | ||||||
9 | determined by multiplying total
health insurance and | ||||||
10 | long-term care insurance premiums paid by the taxpayer
| ||||||
11 | times a number that represents the fractional | ||||||
12 | percentage of eligible medical
expenses under Section | ||||||
13 | 213 of the Internal Revenue Code of 1986 not actually
| ||||||
14 | deducted on the taxpayer's federal income tax return; | ||||||
15 | (W) For taxable years beginning on or after January | ||||||
16 | 1, 1998,
all amounts included in the taxpayer's federal | ||||||
17 | gross income
in the taxable year from amounts converted | ||||||
18 | from a regular IRA to a Roth IRA.
This paragraph is | ||||||
19 | exempt from the provisions of Section
250; | ||||||
20 | (X) For taxable year 1999 and thereafter, an amount | ||||||
21 | equal to the
amount of any (i) distributions, to the | ||||||
22 | extent includible in gross income for
federal income | ||||||
23 | tax purposes, made to the taxpayer because of his or | ||||||
24 | her status
as a victim of persecution for racial or | ||||||
25 | religious reasons by Nazi Germany or
any other Axis | ||||||
26 | regime or as an heir of the victim and (ii) items
of |
| |||||||
| |||||||
1 | income, to the extent
includible in gross income for | ||||||
2 | federal income tax purposes, attributable to,
derived | ||||||
3 | from or in any way related to assets stolen from, | ||||||
4 | hidden from, or
otherwise lost to a victim of
| ||||||
5 | persecution for racial or religious reasons by Nazi | ||||||
6 | Germany or any other Axis
regime immediately prior to, | ||||||
7 | during, and immediately after World War II,
including, | ||||||
8 | but
not limited to, interest on the proceeds receivable | ||||||
9 | as insurance
under policies issued to a victim of | ||||||
10 | persecution for racial or religious
reasons
by Nazi | ||||||
11 | Germany or any other Axis regime by European insurance | ||||||
12 | companies
immediately prior to and during World War II;
| ||||||
13 | provided, however, this subtraction from federal | ||||||
14 | adjusted gross income does not
apply to assets acquired | ||||||
15 | with such assets or with the proceeds from the sale of
| ||||||
16 | such assets; provided, further, this paragraph shall | ||||||
17 | only apply to a taxpayer
who was the first recipient of | ||||||
18 | such assets after their recovery and who is a
victim of | ||||||
19 | persecution for racial or religious reasons
by Nazi | ||||||
20 | Germany or any other Axis regime or as an heir of the | ||||||
21 | victim. The
amount of and the eligibility for any | ||||||
22 | public assistance, benefit, or
similar entitlement is | ||||||
23 | not affected by the inclusion of items (i) and (ii) of
| ||||||
24 | this paragraph in gross income for federal income tax | ||||||
25 | purposes.
This paragraph is exempt from the provisions | ||||||
26 | of Section 250; |
| |||||||
| |||||||
1 | (Y) For taxable years beginning on or after January | ||||||
2 | 1, 2002
and ending
on or before December 31, 2004, | ||||||
3 | moneys contributed in the taxable year to a College | ||||||
4 | Savings Pool account under
Section 16.5 of the State | ||||||
5 | Treasurer Act, except that amounts excluded from
gross | ||||||
6 | income under Section 529(c)(3)(C)(i) of the Internal | ||||||
7 | Revenue Code
shall not be considered moneys | ||||||
8 | contributed under this subparagraph (Y). For taxable | ||||||
9 | years beginning on or after January 1, 2005, a maximum | ||||||
10 | of $10,000
contributed
in the
taxable year to (i) a | ||||||
11 | College Savings Pool account under Section 16.5 of the
| ||||||
12 | State
Treasurer Act or (ii) the Illinois Prepaid | ||||||
13 | Tuition Trust Fund,
except that
amounts excluded from | ||||||
14 | gross income under Section 529(c)(3)(C)(i) of the
| ||||||
15 | Internal
Revenue Code shall not be considered moneys | ||||||
16 | contributed under this subparagraph
(Y). For purposes | ||||||
17 | of this subparagraph, contributions made by an | ||||||
18 | employer on behalf of an employee, or matching | ||||||
19 | contributions made by an employee, shall be treated as | ||||||
20 | made by the employee. This
subparagraph (Y) is exempt | ||||||
21 | from the provisions of Section 250; | ||||||
22 | (Z) For taxable years 2001 and thereafter, for the | ||||||
23 | taxable year in
which the bonus depreciation deduction
| ||||||
24 | is taken on the taxpayer's federal income tax return | ||||||
25 | under
subsection (k) of Section 168 of the Internal | ||||||
26 | Revenue Code and for each
applicable taxable year |
| |||||||
| |||||||
1 | thereafter, an amount equal to "x", where: | ||||||
2 | (1) "y" equals the amount of the depreciation | ||||||
3 | deduction taken for the
taxable year
on the | ||||||
4 | taxpayer's federal income tax return on property | ||||||
5 | for which the bonus
depreciation deduction
was | ||||||
6 | taken in any year under subsection (k) of Section | ||||||
7 | 168 of the Internal
Revenue Code, but not including | ||||||
8 | the bonus depreciation deduction; | ||||||
9 | (2) for taxable years ending on or before | ||||||
10 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
11 | and then divided by 70 (or "y"
multiplied by | ||||||
12 | 0.429); and | ||||||
13 | (3) for taxable years ending after December | ||||||
14 | 31, 2005: | ||||||
15 | (i) for property on which a bonus | ||||||
16 | depreciation deduction of 30% of the adjusted | ||||||
17 | basis was taken, "x" equals "y" multiplied by | ||||||
18 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
19 | 0.429); and | ||||||
20 | (ii) for property on which a bonus | ||||||
21 | depreciation deduction of 50% of the adjusted | ||||||
22 | basis was taken, "x" equals "y" multiplied by | ||||||
23 | 1.0. | ||||||
24 | The aggregate amount deducted under this | ||||||
25 | subparagraph in all taxable
years for any one piece of | ||||||
26 | property may not exceed the amount of the bonus
|
| |||||||
| |||||||
1 | depreciation deduction
taken on that property on the | ||||||
2 | taxpayer's federal income tax return under
subsection | ||||||
3 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
4 | subparagraph (Z) is exempt from the provisions of | ||||||
5 | Section 250; | ||||||
6 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
7 | or otherwise disposes of
property for which the | ||||||
8 | taxpayer was required in any taxable year to make an
| ||||||
9 | addition modification under subparagraph (D-15), then | ||||||
10 | an amount equal to that
addition modification.
| ||||||
11 | If the taxpayer continues to own property through | ||||||
12 | the last day of the last tax year for which the | ||||||
13 | taxpayer may claim a depreciation deduction for | ||||||
14 | federal income tax purposes and for which the taxpayer | ||||||
15 | was required in any taxable year to make an addition | ||||||
16 | modification under subparagraph (D-15), then an amount | ||||||
17 | equal to that addition modification.
| ||||||
18 | The taxpayer is allowed to take the deduction under | ||||||
19 | this subparagraph
only once with respect to any one | ||||||
20 | piece of property. | ||||||
21 | This subparagraph (AA) is exempt from the | ||||||
22 | provisions of Section 250; | ||||||
23 | (BB) Any amount included in adjusted gross income, | ||||||
24 | other
than
salary,
received by a driver in a | ||||||
25 | ridesharing arrangement using a motor vehicle; | ||||||
26 | (CC) The amount of (i) any interest income (net of |
| |||||||
| |||||||
1 | the deductions allocable thereto) taken into account | ||||||
2 | for the taxable year with respect to a transaction with | ||||||
3 | a taxpayer that is required to make an addition | ||||||
4 | modification with respect to such transaction under | ||||||
5 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
6 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
7 | the amount of that addition modification, and
(ii) any | ||||||
8 | income from intangible property (net of the deductions | ||||||
9 | allocable thereto) taken into account for the taxable | ||||||
10 | year with respect to a transaction with a taxpayer that | ||||||
11 | is required to make an addition modification with | ||||||
12 | respect to such transaction under Section | ||||||
13 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
14 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
15 | addition modification. This subparagraph (CC) is | ||||||
16 | exempt from the provisions of Section 250; | ||||||
17 | (DD) An amount equal to the interest income taken | ||||||
18 | into account for the taxable year (net of the | ||||||
19 | deductions allocable thereto) with respect to | ||||||
20 | transactions with (i) a foreign person who would be a | ||||||
21 | member of the taxpayer's unitary business group but for | ||||||
22 | the fact that the foreign person's business activity | ||||||
23 | outside the United States is 80% or more of that | ||||||
24 | person's total business activity and (ii) for taxable | ||||||
25 | years ending on or after December 31, 2008, to a person | ||||||
26 | who would be a member of the same unitary business |
| |||||||
| |||||||
1 | group but for the fact that the person is prohibited | ||||||
2 | under Section 1501(a)(27) from being included in the | ||||||
3 | unitary business group because he or she is ordinarily | ||||||
4 | required to apportion business income under different | ||||||
5 | subsections of Section 304, but not to exceed the | ||||||
6 | addition modification required to be made for the same | ||||||
7 | taxable year under Section 203(a)(2)(D-17) for | ||||||
8 | interest paid, accrued, or incurred, directly or | ||||||
9 | indirectly, to the same person. This subparagraph (DD) | ||||||
10 | is exempt from the provisions of Section 250; | ||||||
11 | (EE) An amount equal to the income from intangible | ||||||
12 | property taken into account for the taxable year (net | ||||||
13 | of the deductions allocable thereto) with respect to | ||||||
14 | transactions with (i) a foreign person who would be a | ||||||
15 | member of the taxpayer's unitary business group but for | ||||||
16 | the fact that the foreign person's business activity | ||||||
17 | outside the United States is 80% or more of that | ||||||
18 | person's total business activity and (ii) for taxable | ||||||
19 | years ending on or after December 31, 2008, to a person | ||||||
20 | who would be a member of the same unitary business | ||||||
21 | group but for the fact that the person is prohibited | ||||||
22 | under Section 1501(a)(27) from being included in the | ||||||
23 | unitary business group because he or she is ordinarily | ||||||
24 | required to apportion business income under different | ||||||
25 | subsections of Section 304, but not to exceed the | ||||||
26 | addition modification required to be made for the same |
| |||||||
| |||||||
1 | taxable year under Section 203(a)(2)(D-18) for | ||||||
2 | intangible expenses and costs paid, accrued, or | ||||||
3 | incurred, directly or indirectly, to the same foreign | ||||||
4 | person. This subparagraph (EE) is exempt from the | ||||||
5 | provisions of Section 250; | ||||||
6 | (FF) An amount equal to any amount awarded to the | ||||||
7 | taxpayer during the taxable year by the Court of Claims | ||||||
8 | under subsection (c) of Section 8 of the Court of | ||||||
9 | Claims Act for time unjustly served in a State prison. | ||||||
10 | This subparagraph (FF) is exempt from the provisions of | ||||||
11 | Section 250; | ||||||
12 | (GG) For taxable years ending on or after December | ||||||
13 | 31, 2011, in the case of a taxpayer who was required to | ||||||
14 | add back any insurance premiums under Section | ||||||
15 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
16 | that part of a reimbursement received from the | ||||||
17 | insurance company equal to the amount of the expense or | ||||||
18 | loss (including expenses incurred by the insurance | ||||||
19 | company) that would have been taken into account as a | ||||||
20 | deduction for federal income tax purposes if the | ||||||
21 | expense or loss had been uninsured. If a taxpayer makes | ||||||
22 | the election provided for by this subparagraph (GG), | ||||||
23 | the insurer to which the premiums were paid must add | ||||||
24 | back to income the amount subtracted by the taxpayer | ||||||
25 | pursuant to this subparagraph (GG). This subparagraph | ||||||
26 | (GG) is exempt from the provisions of Section 250; and |
| |||||||
| |||||||
1 | (HH) For taxable years beginning on or after | ||||||
2 | January 1, 2018 and prior to January 1, 2023, a maximum | ||||||
3 | of $10,000 contributed in the taxable year to a | ||||||
4 | qualified ABLE account under Section 16.6 of the State | ||||||
5 | Treasurer Act, except that amounts excluded from gross | ||||||
6 | income under Section 529(c)(3)(C)(i) or Section | ||||||
7 | 529A(c)(1)(C) of the Internal Revenue Code shall not be | ||||||
8 | considered moneys contributed under this subparagraph | ||||||
9 | (HH). For purposes of this subparagraph (HH), | ||||||
10 | contributions made by an employer on behalf of an | ||||||
11 | employee, or matching contributions made by an | ||||||
12 | employee, shall be treated as made by the employee.
| ||||||
13 | (b) Corporations. | ||||||
14 | (1) In general. In the case of a corporation, base | ||||||
15 | income means an
amount equal to the taxpayer's taxable | ||||||
16 | income for the taxable year as
modified by paragraph (2). | ||||||
17 | (2) Modifications. The taxable income referred to in | ||||||
18 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
19 | of the following amounts: | ||||||
20 | (A) An amount equal to all amounts paid or accrued | ||||||
21 | to the taxpayer
as interest and all distributions | ||||||
22 | received from regulated investment
companies during | ||||||
23 | the taxable year to the extent excluded from gross
| ||||||
24 | income in the computation of taxable income; | ||||||
25 | (B) An amount equal to the amount of tax imposed by |
| |||||||
| |||||||
1 | this Act to the
extent deducted from gross income in | ||||||
2 | the computation of taxable income
for the taxable year; | ||||||
3 | (C) In the case of a regulated investment company, | ||||||
4 | an amount equal to
the excess of (i) the net long-term | ||||||
5 | capital gain for the taxable year, over
(ii) the amount | ||||||
6 | of the capital gain dividends designated as such in | ||||||
7 | accordance
with Section 852(b)(3)(C) of the Internal | ||||||
8 | Revenue Code and any amount
designated under Section | ||||||
9 | 852(b)(3)(D) of the Internal Revenue Code,
| ||||||
10 | attributable to the taxable year (this amendatory Act | ||||||
11 | of 1995
(Public Act 89-89) is declarative of existing | ||||||
12 | law and is not a new
enactment); | ||||||
13 | (D) The amount of any net operating loss deduction | ||||||
14 | taken in arriving
at taxable income, other than a net | ||||||
15 | operating loss carried forward from a
taxable year | ||||||
16 | ending prior to December 31, 1986; | ||||||
17 | (E) For taxable years in which a net operating loss | ||||||
18 | carryback or
carryforward from a taxable year ending | ||||||
19 | prior to December 31, 1986 is an
element of taxable | ||||||
20 | income under paragraph (1) of subsection (e) or
| ||||||
21 | subparagraph (E) of paragraph (2) of subsection (e), | ||||||
22 | the amount by which
addition modifications other than | ||||||
23 | those provided by this subparagraph (E)
exceeded | ||||||
24 | subtraction modifications in such earlier taxable | ||||||
25 | year, with the
following limitations applied in the | ||||||
26 | order that they are listed: |
| |||||||
| |||||||
1 | (i) the addition modification relating to the | ||||||
2 | net operating loss
carried back or forward to the | ||||||
3 | taxable year from any taxable year ending
prior to | ||||||
4 | December 31, 1986 shall be reduced by the amount of | ||||||
5 | addition
modification under this subparagraph (E) | ||||||
6 | which related to that net operating
loss and which | ||||||
7 | was taken into account in calculating the base | ||||||
8 | income of an
earlier taxable year, and | ||||||
9 | (ii) the addition modification relating to the | ||||||
10 | net operating loss
carried back or forward to the | ||||||
11 | taxable year from any taxable year ending
prior to | ||||||
12 | December 31, 1986 shall not exceed the amount of | ||||||
13 | such carryback or
carryforward; | ||||||
14 | For taxable years in which there is a net operating | ||||||
15 | loss carryback or
carryforward from more than one other | ||||||
16 | taxable year ending prior to December
31, 1986, the | ||||||
17 | addition modification provided in this subparagraph | ||||||
18 | (E) shall
be the sum of the amounts computed | ||||||
19 | independently under the preceding
provisions of this | ||||||
20 | subparagraph (E) for each such taxable year; | ||||||
21 | (E-5) For taxable years ending after December 31, | ||||||
22 | 1997, an
amount equal to any eligible remediation costs | ||||||
23 | that the corporation
deducted in computing adjusted | ||||||
24 | gross income and for which the
corporation claims a | ||||||
25 | credit under subsection (l) of Section 201; | ||||||
26 | (E-10) For taxable years 2001 and thereafter, an |
| |||||||
| |||||||
1 | amount equal to the
bonus depreciation deduction taken | ||||||
2 | on the taxpayer's federal income tax return for the | ||||||
3 | taxable
year under subsection (k) of Section 168 of the | ||||||
4 | Internal Revenue Code; | ||||||
5 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
6 | or otherwise disposes of property for which the | ||||||
7 | taxpayer was required in any taxable year to
make an | ||||||
8 | addition modification under subparagraph (E-10), then | ||||||
9 | an amount equal
to the aggregate amount of the | ||||||
10 | deductions taken in all taxable
years under | ||||||
11 | subparagraph (T) with respect to that property. | ||||||
12 | If the taxpayer continues to own property through | ||||||
13 | the last day of the last tax year for which the | ||||||
14 | taxpayer may claim a depreciation deduction for | ||||||
15 | federal income tax purposes and for which the taxpayer | ||||||
16 | was allowed in any taxable year to make a subtraction | ||||||
17 | modification under subparagraph (T), then an amount | ||||||
18 | equal to that subtraction modification.
| ||||||
19 | The taxpayer is required to make the addition | ||||||
20 | modification under this
subparagraph
only once with | ||||||
21 | respect to any one piece of property; | ||||||
22 | (E-12) An amount equal to the amount otherwise | ||||||
23 | allowed as a deduction in computing base income for | ||||||
24 | interest paid, accrued, or incurred, directly or | ||||||
25 | indirectly, (i) for taxable years ending on or after | ||||||
26 | December 31, 2004, to a foreign person who would be a |
| |||||||
| |||||||
1 | member of the same unitary business group but for the | ||||||
2 | fact the foreign person's business activity outside | ||||||
3 | the United States is 80% or more of the foreign | ||||||
4 | person's total business activity and (ii) for taxable | ||||||
5 | years ending on or after December 31, 2008, to a person | ||||||
6 | who would be a member of the same unitary business | ||||||
7 | group but for the fact that the person is prohibited | ||||||
8 | under Section 1501(a)(27) from being included in the | ||||||
9 | unitary business group because he or she is ordinarily | ||||||
10 | required to apportion business income under different | ||||||
11 | subsections of Section 304. The addition modification | ||||||
12 | required by this subparagraph shall be reduced to the | ||||||
13 | extent that dividends were included in base income of | ||||||
14 | the unitary group for the same taxable year and | ||||||
15 | received by the taxpayer or by a member of the | ||||||
16 | taxpayer's unitary business group (including amounts | ||||||
17 | included in gross income pursuant to Sections 951 | ||||||
18 | through 964 of the Internal Revenue Code and amounts | ||||||
19 | included in gross income under Section 78 of the | ||||||
20 | Internal Revenue Code) with respect to the stock of the | ||||||
21 | same person to whom the interest was paid, accrued, or | ||||||
22 | incurred.
| ||||||
23 | This paragraph shall not apply to the following:
| ||||||
24 | (i) an item of interest paid, accrued, or | ||||||
25 | incurred, directly or indirectly, to a person who | ||||||
26 | is subject in a foreign country or state, other |
| |||||||
| |||||||
1 | than a state which requires mandatory unitary | ||||||
2 | reporting, to a tax on or measured by net income | ||||||
3 | with respect to such interest; or | ||||||
4 | (ii) an item of interest paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to a person if | ||||||
6 | the taxpayer can establish, based on a | ||||||
7 | preponderance of the evidence, both of the | ||||||
8 | following: | ||||||
9 | (a) the person, during the same taxable | ||||||
10 | year, paid, accrued, or incurred, the interest | ||||||
11 | to a person that is not a related member, and | ||||||
12 | (b) the transaction giving rise to the | ||||||
13 | interest expense between the taxpayer and the | ||||||
14 | person did not have as a principal purpose the | ||||||
15 | avoidance of Illinois income tax, and is paid | ||||||
16 | pursuant to a contract or agreement that | ||||||
17 | reflects an arm's-length interest rate and | ||||||
18 | terms; or
| ||||||
19 | (iii) the taxpayer can establish, based on | ||||||
20 | clear and convincing evidence, that the interest | ||||||
21 | paid, accrued, or incurred relates to a contract or | ||||||
22 | agreement entered into at arm's-length rates and | ||||||
23 | terms and the principal purpose for the payment is | ||||||
24 | not federal or Illinois tax avoidance; or
| ||||||
25 | (iv) an item of interest paid, accrued, or | ||||||
26 | incurred, directly or indirectly, to a person if |
| |||||||
| |||||||
1 | the taxpayer establishes by clear and convincing | ||||||
2 | evidence that the adjustments are unreasonable; or | ||||||
3 | if the taxpayer and the Director agree in writing | ||||||
4 | to the application or use of an alternative method | ||||||
5 | of apportionment under Section 304(f).
| ||||||
6 | Nothing in this subsection shall preclude the | ||||||
7 | Director from making any other adjustment | ||||||
8 | otherwise allowed under Section 404 of this Act for | ||||||
9 | any tax year beginning after the effective date of | ||||||
10 | this amendment provided such adjustment is made | ||||||
11 | pursuant to regulation adopted by the Department | ||||||
12 | and such regulations provide methods and standards | ||||||
13 | by which the Department will utilize its authority | ||||||
14 | under Section 404 of this Act;
| ||||||
15 | (E-13) An amount equal to the amount of intangible | ||||||
16 | expenses and costs otherwise allowed as a deduction in | ||||||
17 | computing base income, and that were paid, accrued, or | ||||||
18 | incurred, directly or indirectly, (i) for taxable | ||||||
19 | years ending on or after December 31, 2004, to a | ||||||
20 | foreign person who would be a member of the same | ||||||
21 | unitary business group but for the fact that the | ||||||
22 | foreign person's business activity outside the United | ||||||
23 | States is 80% or more of that person's total business | ||||||
24 | activity and (ii) for taxable years ending on or after | ||||||
25 | December 31, 2008, to a person who would be a member of | ||||||
26 | the same unitary business group but for the fact that |
| |||||||
| |||||||
1 | the person is prohibited under Section 1501(a)(27) | ||||||
2 | from being included in the unitary business group | ||||||
3 | because he or she is ordinarily required to apportion | ||||||
4 | business income under different subsections of Section | ||||||
5 | 304. The addition modification required by this | ||||||
6 | subparagraph shall be reduced to the extent that | ||||||
7 | dividends were included in base income of the unitary | ||||||
8 | group for the same taxable year and received by the | ||||||
9 | taxpayer or by a member of the taxpayer's unitary | ||||||
10 | business group (including amounts included in gross | ||||||
11 | income pursuant to Sections 951 through 964 of the | ||||||
12 | Internal Revenue Code and amounts included in gross | ||||||
13 | income under Section 78 of the Internal Revenue Code) | ||||||
14 | with respect to the stock of the same person to whom | ||||||
15 | the intangible expenses and costs were directly or | ||||||
16 | indirectly paid, incurred, or accrued. The preceding | ||||||
17 | sentence shall not apply to the extent that the same | ||||||
18 | dividends caused a reduction to the addition | ||||||
19 | modification required under Section 203(b)(2)(E-12) of | ||||||
20 | this Act.
As used in this subparagraph, the term | ||||||
21 | "intangible expenses and costs" includes (1) expenses, | ||||||
22 | losses, and costs for, or related to, the direct or | ||||||
23 | indirect acquisition, use, maintenance or management, | ||||||
24 | ownership, sale, exchange, or any other disposition of | ||||||
25 | intangible property; (2) losses incurred, directly or | ||||||
26 | indirectly, from factoring transactions or discounting |
| |||||||
| |||||||
1 | transactions; (3) royalty, patent, technical, and | ||||||
2 | copyright fees; (4) licensing fees; and (5) other | ||||||
3 | similar expenses and costs.
For purposes of this | ||||||
4 | subparagraph, "intangible property" includes patents, | ||||||
5 | patent applications, trade names, trademarks, service | ||||||
6 | marks, copyrights, mask works, trade secrets, and | ||||||
7 | similar types of intangible assets. | ||||||
8 | This paragraph shall not apply to the following: | ||||||
9 | (i) any item of intangible expenses or costs | ||||||
10 | paid, accrued, or incurred, directly or | ||||||
11 | indirectly, from a transaction with a person who is | ||||||
12 | subject in a foreign country or state, other than a | ||||||
13 | state which requires mandatory unitary reporting, | ||||||
14 | to a tax on or measured by net income with respect | ||||||
15 | to such item; or | ||||||
16 | (ii) any item of intangible expense or cost | ||||||
17 | paid, accrued, or incurred, directly or | ||||||
18 | indirectly, if the taxpayer can establish, based | ||||||
19 | on a preponderance of the evidence, both of the | ||||||
20 | following: | ||||||
21 | (a) the person during the same taxable | ||||||
22 | year paid, accrued, or incurred, the | ||||||
23 | intangible expense or cost to a person that is | ||||||
24 | not a related member, and | ||||||
25 | (b) the transaction giving rise to the | ||||||
26 | intangible expense or cost between the |
| |||||||
| |||||||
1 | taxpayer and the person did not have as a | ||||||
2 | principal purpose the avoidance of Illinois | ||||||
3 | income tax, and is paid pursuant to a contract | ||||||
4 | or agreement that reflects arm's-length terms; | ||||||
5 | or | ||||||
6 | (iii) any item of intangible expense or cost | ||||||
7 | paid, accrued, or incurred, directly or | ||||||
8 | indirectly, from a transaction with a person if the | ||||||
9 | taxpayer establishes by clear and convincing | ||||||
10 | evidence, that the adjustments are unreasonable; | ||||||
11 | or if the taxpayer and the Director agree in | ||||||
12 | writing to the application or use of an alternative | ||||||
13 | method of apportionment under Section 304(f);
| ||||||
14 | Nothing in this subsection shall preclude the | ||||||
15 | Director from making any other adjustment | ||||||
16 | otherwise allowed under Section 404 of this Act for | ||||||
17 | any tax year beginning after the effective date of | ||||||
18 | this amendment provided such adjustment is made | ||||||
19 | pursuant to regulation adopted by the Department | ||||||
20 | and such regulations provide methods and standards | ||||||
21 | by which the Department will utilize its authority | ||||||
22 | under Section 404 of this Act;
| ||||||
23 | (E-14) For taxable years ending on or after | ||||||
24 | December 31, 2008, an amount equal to the amount of | ||||||
25 | insurance premium expenses and costs otherwise allowed | ||||||
26 | as a deduction in computing base income, and that were |
| |||||||
| |||||||
1 | paid, accrued, or incurred, directly or indirectly, to | ||||||
2 | a person who would be a member of the same unitary | ||||||
3 | business group but for the fact that the person is | ||||||
4 | prohibited under Section 1501(a)(27) from being | ||||||
5 | included in the unitary business group because he or | ||||||
6 | she is ordinarily required to apportion business | ||||||
7 | income under different subsections of Section 304. The | ||||||
8 | addition modification required by this subparagraph | ||||||
9 | shall be reduced to the extent that dividends were | ||||||
10 | included in base income of the unitary group for the | ||||||
11 | same taxable year and received by the taxpayer or by a | ||||||
12 | member of the taxpayer's unitary business group | ||||||
13 | (including amounts included in gross income under | ||||||
14 | Sections 951 through 964 of the Internal Revenue Code | ||||||
15 | and amounts included in gross income under Section 78 | ||||||
16 | of the Internal Revenue Code) with respect to the stock | ||||||
17 | of the same person to whom the premiums and costs were | ||||||
18 | directly or indirectly paid, incurred, or accrued. The | ||||||
19 | preceding sentence does not apply to the extent that | ||||||
20 | the same dividends caused a reduction to the addition | ||||||
21 | modification required under Section 203(b)(2)(E-12) or | ||||||
22 | Section 203(b)(2)(E-13) of this Act;
| ||||||
23 | (E-15) For taxable years beginning after December | ||||||
24 | 31, 2008, any deduction for dividends paid by a captive | ||||||
25 | real estate investment trust that is allowed to a real | ||||||
26 | estate investment trust under Section 857(b)(2)(B) of |
| |||||||
| |||||||
1 | the Internal Revenue Code for dividends paid; | ||||||
2 | (E-16) An amount equal to the credit allowable to | ||||||
3 | the taxpayer under Section 218(a) of this Act, | ||||||
4 | determined without regard to Section 218(c) of this | ||||||
5 | Act; | ||||||
6 | (E-17) For taxable years ending on or after | ||||||
7 | December 31, 2017, an amount equal to the deduction | ||||||
8 | allowed under Section 199 of the Internal Revenue Code | ||||||
9 | for the taxable year; | ||||||
10 | (E-18) for taxable years beginning after December | ||||||
11 | 31, 2018, an amount equal to the deduction allowed | ||||||
12 | under Section 250(a)(1)(A) of the Internal Revenue | ||||||
13 | Code for the taxable year. | ||||||
14 | and by deducting from the total so obtained the sum of the | ||||||
15 | following
amounts: | ||||||
16 | (F) An amount equal to the amount of any tax | ||||||
17 | imposed by this Act
which was refunded to the taxpayer | ||||||
18 | and included in such total for the
taxable year; | ||||||
19 | (G) An amount equal to any amount included in such | ||||||
20 | total under
Section 78 of the Internal Revenue Code; | ||||||
21 | (H) In the case of a regulated investment company, | ||||||
22 | an amount equal
to the amount of exempt interest | ||||||
23 | dividends as defined in subsection (b)(5) of Section | ||||||
24 | 852 of the Internal Revenue Code, paid to shareholders
| ||||||
25 | for the taxable year; | ||||||
26 | (I) With the exception of any amounts subtracted |
| |||||||
| |||||||
1 | under subparagraph
(J),
an amount equal to the sum of | ||||||
2 | all amounts disallowed as
deductions by (i) Sections | ||||||
3 | 171(a)(2) , and 265(a)(2) and amounts disallowed as
| ||||||
4 | interest expense by Section 291(a)(3) of the Internal | ||||||
5 | Revenue Code, and all amounts of expenses allocable to | ||||||
6 | interest and
disallowed as deductions by Section | ||||||
7 | 265(a)(1) of the Internal Revenue Code;
and (ii) for | ||||||
8 | taxable years
ending on or after August 13, 1999, | ||||||
9 | Sections
171(a)(2), 265,
280C, 291(a)(3), and | ||||||
10 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
11 | for tax years ending on or after December 31, 2011, | ||||||
12 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
13 | of the Internal Revenue Code and, for taxable years | ||||||
14 | ending on or after December 31, 2008, any amount | ||||||
15 | included in gross income under Section 87 of the | ||||||
16 | Internal Revenue Code and the policyholders' share of | ||||||
17 | tax-exempt interest of a life insurance company under | ||||||
18 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
19 | the case of a life insurance company with gross income | ||||||
20 | from a decrease in reserves for the tax year) or | ||||||
21 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
22 | the case of a life insurance company allowed a | ||||||
23 | deduction for an increase in reserves for the tax | ||||||
24 | year); the
provisions of this
subparagraph are exempt | ||||||
25 | from the provisions of Section 250; | ||||||
26 | (J) An amount equal to all amounts included in such |
| |||||||
| |||||||
1 | total which are
exempt from taxation by this State | ||||||
2 | either by reason of its statutes or
Constitution
or by | ||||||
3 | reason of the Constitution, treaties or statutes of the | ||||||
4 | United States;
provided that, in the case of any | ||||||
5 | statute of this State that exempts income
derived from | ||||||
6 | bonds or other obligations from the tax imposed under | ||||||
7 | this Act,
the amount exempted shall be the interest net | ||||||
8 | of bond premium amortization; | ||||||
9 | (K) An amount equal to those dividends included in | ||||||
10 | such total
which were paid by a corporation which | ||||||
11 | conducts
business operations in a River Edge | ||||||
12 | Redevelopment Zone or zones created under the River | ||||||
13 | Edge Redevelopment Zone Act and conducts substantially | ||||||
14 | all of its
operations in a River Edge Redevelopment | ||||||
15 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
16 | provisions of Section 250; | ||||||
17 | (L) An amount equal to those dividends included in | ||||||
18 | such total that
were paid by a corporation that | ||||||
19 | conducts business operations in a federally
designated | ||||||
20 | Foreign Trade Zone or Sub-Zone and that is designated a | ||||||
21 | High Impact
Business located in Illinois; provided | ||||||
22 | that dividends eligible for the
deduction provided in | ||||||
23 | subparagraph (K) of paragraph 2 of this subsection
| ||||||
24 | shall not be eligible for the deduction provided under | ||||||
25 | this subparagraph
(L); | ||||||
26 | (M) For any taxpayer that is a financial |
| |||||||
| |||||||
1 | organization within the meaning
of Section 304(c) of | ||||||
2 | this Act, an amount included in such total as interest
| ||||||
3 | income from a loan or loans made by such taxpayer to a | ||||||
4 | borrower, to the extent
that such a loan is secured by | ||||||
5 | property which is eligible for the River Edge | ||||||
6 | Redevelopment Zone Investment Credit. To determine the | ||||||
7 | portion of a loan or loans that is
secured by property | ||||||
8 | eligible for a Section 201(f) investment
credit to the | ||||||
9 | borrower, the entire principal amount of the loan or | ||||||
10 | loans
between the taxpayer and the borrower should be | ||||||
11 | divided into the basis of the
Section 201(f) investment | ||||||
12 | credit property which secures the
loan or loans, using | ||||||
13 | for this purpose the original basis of such property on
| ||||||
14 | the date that it was placed in service in the River | ||||||
15 | Edge Redevelopment Zone. The subtraction modification | ||||||
16 | available to the taxpayer in any
year under this | ||||||
17 | subsection shall be that portion of the total interest | ||||||
18 | paid
by the borrower with respect to such loan | ||||||
19 | attributable to the eligible
property as calculated | ||||||
20 | under the previous sentence. This subparagraph (M) is | ||||||
21 | exempt from the provisions of Section 250; | ||||||
22 | (M-1) For any taxpayer that is a financial | ||||||
23 | organization within the
meaning of Section 304(c) of | ||||||
24 | this Act, an amount included in such total as
interest | ||||||
25 | income from a loan or loans made by such taxpayer to a | ||||||
26 | borrower,
to the extent that such a loan is secured by |
| |||||||
| |||||||
1 | property which is eligible for
the High Impact Business | ||||||
2 | Investment Credit. To determine the portion of a
loan | ||||||
3 | or loans that is secured by property eligible for a | ||||||
4 | Section 201(h) investment credit to the borrower, the | ||||||
5 | entire principal amount of
the loan or loans between | ||||||
6 | the taxpayer and the borrower should be divided into
| ||||||
7 | the basis of the Section 201(h) investment credit | ||||||
8 | property which
secures the loan or loans, using for | ||||||
9 | this purpose the original basis of such
property on the | ||||||
10 | date that it was placed in service in a federally | ||||||
11 | designated
Foreign Trade Zone or Sub-Zone located in | ||||||
12 | Illinois. No taxpayer that is
eligible for the | ||||||
13 | deduction provided in subparagraph (M) of paragraph | ||||||
14 | (2) of
this subsection shall be eligible for the | ||||||
15 | deduction provided under this
subparagraph (M-1). The | ||||||
16 | subtraction modification available to taxpayers in
any | ||||||
17 | year under this subsection shall be that portion of the | ||||||
18 | total interest
paid by the borrower with respect to | ||||||
19 | such loan attributable to the eligible
property as | ||||||
20 | calculated under the previous sentence; | ||||||
21 | (N) Two times any contribution made during the | ||||||
22 | taxable year to a
designated zone organization to the | ||||||
23 | extent that the contribution (i)
qualifies as a | ||||||
24 | charitable contribution under subsection (c) of | ||||||
25 | Section 170
of the Internal Revenue Code and (ii) must, | ||||||
26 | by its terms, be used for a
project approved by the |
| |||||||
| |||||||
1 | Department of Commerce and Economic Opportunity under | ||||||
2 | Section 11 of the Illinois Enterprise Zone Act or under | ||||||
3 | Section 10-10 of the River Edge Redevelopment Zone Act. | ||||||
4 | This subparagraph (N) is exempt from the provisions of | ||||||
5 | Section 250; | ||||||
6 | (O) An amount equal to: (i) 85% for taxable years | ||||||
7 | ending on or before
December 31, 1992, or, a percentage | ||||||
8 | equal to the percentage allowable under
Section | ||||||
9 | 243(a)(1) of the Internal Revenue Code of 1986 for | ||||||
10 | taxable years ending
after December 31, 1992, of the | ||||||
11 | amount by which dividends included in taxable
income | ||||||
12 | and received from a corporation that is not created or | ||||||
13 | organized under
the laws of the United States or any | ||||||
14 | state or political subdivision thereof,
including, for | ||||||
15 | taxable years ending on or after December 31, 1988, | ||||||
16 | dividends
received or deemed received or paid or deemed | ||||||
17 | paid under Sections 951 through
965 of the Internal | ||||||
18 | Revenue Code, exceed the amount of the modification
| ||||||
19 | provided under subparagraph (G) of paragraph (2) of | ||||||
20 | this subsection (b) which
is related to such dividends, | ||||||
21 | and including, for taxable years ending on or after | ||||||
22 | December 31, 2008, dividends received from a captive | ||||||
23 | real estate investment trust; plus (ii) 100% of the | ||||||
24 | amount by which dividends,
included in taxable income | ||||||
25 | and received, including, for taxable years ending on
or | ||||||
26 | after December 31, 1988, dividends received or deemed |
| |||||||
| |||||||
1 | received or paid or
deemed paid under Sections 951 | ||||||
2 | through 964 of the Internal Revenue Code and including, | ||||||
3 | for taxable years ending on or after December 31, 2008, | ||||||
4 | dividends received from a captive real estate | ||||||
5 | investment trust, from
any such corporation specified | ||||||
6 | in clause (i) that would but for the provisions
of | ||||||
7 | Section 1504(b)(3) of the Internal Revenue Code be | ||||||
8 | treated as a member of
the affiliated group which | ||||||
9 | includes the dividend recipient, exceed the amount
of | ||||||
10 | the modification provided under subparagraph (G) of | ||||||
11 | paragraph (2) of this
subsection (b) which is related | ||||||
12 | to such dividends. This subparagraph (O) is exempt from | ||||||
13 | the provisions of Section 250 of this Act; | ||||||
14 | (P) An amount equal to any contribution made to a | ||||||
15 | job training project
established pursuant to the Tax | ||||||
16 | Increment Allocation Redevelopment Act; | ||||||
17 | (Q) An amount equal to the amount of the deduction | ||||||
18 | used to compute the
federal income tax credit for | ||||||
19 | restoration of substantial amounts held under
claim of | ||||||
20 | right for the taxable year pursuant to Section 1341 of | ||||||
21 | the
Internal Revenue Code; | ||||||
22 | (R) On and after July 20, 1999, in the case of an | ||||||
23 | attorney-in-fact with respect to whom an
interinsurer | ||||||
24 | or a reciprocal insurer has made the election under | ||||||
25 | Section 835 of
the Internal Revenue Code, 26 U.S.C. | ||||||
26 | 835, an amount equal to the excess, if
any, of the |
| |||||||
| |||||||
1 | amounts paid or incurred by that interinsurer or | ||||||
2 | reciprocal insurer
in the taxable year to the | ||||||
3 | attorney-in-fact over the deduction allowed to that
| ||||||
4 | interinsurer or reciprocal insurer with respect to the | ||||||
5 | attorney-in-fact under
Section 835(b) of the Internal | ||||||
6 | Revenue Code for the taxable year; the provisions of | ||||||
7 | this subparagraph are exempt from the provisions of | ||||||
8 | Section 250; | ||||||
9 | (S) For taxable years ending on or after December | ||||||
10 | 31, 1997, in the
case of a Subchapter
S corporation, an | ||||||
11 | amount equal to all amounts of income allocable to a
| ||||||
12 | shareholder subject to the Personal Property Tax | ||||||
13 | Replacement Income Tax imposed
by subsections (c) and | ||||||
14 | (d) of Section 201 of this Act, including amounts
| ||||||
15 | allocable to organizations exempt from federal income | ||||||
16 | tax by reason of Section
501(a) of the Internal Revenue | ||||||
17 | Code. This subparagraph (S) is exempt from
the | ||||||
18 | provisions of Section 250; | ||||||
19 | (T) For taxable years 2001 and thereafter, for the | ||||||
20 | taxable year in
which the bonus depreciation deduction
| ||||||
21 | is taken on the taxpayer's federal income tax return | ||||||
22 | under
subsection (k) of Section 168 of the Internal | ||||||
23 | Revenue Code and for each
applicable taxable year | ||||||
24 | thereafter, an amount equal to "x", where: | ||||||
25 | (1) "y" equals the amount of the depreciation | ||||||
26 | deduction taken for the
taxable year
on the |
| |||||||
| |||||||
1 | taxpayer's federal income tax return on property | ||||||
2 | for which the bonus
depreciation deduction
was | ||||||
3 | taken in any year under subsection (k) of Section | ||||||
4 | 168 of the Internal
Revenue Code, but not including | ||||||
5 | the bonus depreciation deduction; | ||||||
6 | (2) for taxable years ending on or before | ||||||
7 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
8 | and then divided by 70 (or "y"
multiplied by | ||||||
9 | 0.429); and | ||||||
10 | (3) for taxable years ending after December | ||||||
11 | 31, 2005: | ||||||
12 | (i) for property on which a bonus | ||||||
13 | depreciation deduction of 30% of the adjusted | ||||||
14 | basis was taken, "x" equals "y" multiplied by | ||||||
15 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
16 | 0.429); and | ||||||
17 | (ii) for property on which a bonus | ||||||
18 | depreciation deduction of 50% of the adjusted | ||||||
19 | basis was taken, "x" equals "y" multiplied by | ||||||
20 | 1.0. | ||||||
21 | The aggregate amount deducted under this | ||||||
22 | subparagraph in all taxable
years for any one piece of | ||||||
23 | property may not exceed the amount of the bonus
| ||||||
24 | depreciation deduction
taken on that property on the | ||||||
25 | taxpayer's federal income tax return under
subsection | ||||||
26 | (k) of Section 168 of the Internal Revenue Code. This |
| |||||||
| |||||||
1 | subparagraph (T) is exempt from the provisions of | ||||||
2 | Section 250; | ||||||
3 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
4 | otherwise disposes of
property for which the taxpayer | ||||||
5 | was required in any taxable year to make an
addition | ||||||
6 | modification under subparagraph (E-10), then an amount | ||||||
7 | equal to that
addition modification. | ||||||
8 | If the taxpayer continues to own property through | ||||||
9 | the last day of the last tax year for which the | ||||||
10 | taxpayer may claim a depreciation deduction for | ||||||
11 | federal income tax purposes and for which the taxpayer | ||||||
12 | was required in any taxable year to make an addition | ||||||
13 | modification under subparagraph (E-10), then an amount | ||||||
14 | equal to that addition modification.
| ||||||
15 | The taxpayer is allowed to take the deduction under | ||||||
16 | this subparagraph
only once with respect to any one | ||||||
17 | piece of property. | ||||||
18 | This subparagraph (U) is exempt from the | ||||||
19 | provisions of Section 250; | ||||||
20 | (V) The amount of: (i) any interest income (net of | ||||||
21 | the deductions allocable thereto) taken into account | ||||||
22 | for the taxable year with respect to a transaction with | ||||||
23 | a taxpayer that is required to make an addition | ||||||
24 | modification with respect to such transaction under | ||||||
25 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
26 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed |
| |||||||
| |||||||
1 | the amount of such addition modification,
(ii) any | ||||||
2 | income from intangible property (net of the deductions | ||||||
3 | allocable thereto) taken into account for the taxable | ||||||
4 | year with respect to a transaction with a taxpayer that | ||||||
5 | is required to make an addition modification with | ||||||
6 | respect to such transaction under Section | ||||||
7 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
8 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
9 | addition modification, and (iii) any insurance premium | ||||||
10 | income (net of deductions allocable thereto) taken | ||||||
11 | into account for the taxable year with respect to a | ||||||
12 | transaction with a taxpayer that is required to make an | ||||||
13 | addition modification with respect to such transaction | ||||||
14 | under Section 203(a)(2)(D-19), Section | ||||||
15 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
16 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
17 | addition modification. This subparagraph (V) is exempt | ||||||
18 | from the provisions of Section 250;
| ||||||
19 | (W) An amount equal to the interest income taken | ||||||
20 | into account for the taxable year (net of the | ||||||
21 | deductions allocable thereto) with respect to | ||||||
22 | transactions with (i) a foreign person who would be a | ||||||
23 | member of the taxpayer's unitary business group but for | ||||||
24 | the fact that the foreign person's business activity | ||||||
25 | outside the United States is 80% or more of that | ||||||
26 | person's total business activity and (ii) for taxable |
| |||||||
| |||||||
1 | years ending on or after December 31, 2008, to a person | ||||||
2 | who would be a member of the same unitary business | ||||||
3 | group but for the fact that the person is prohibited | ||||||
4 | under Section 1501(a)(27) from being included in the | ||||||
5 | unitary business group because he or she is ordinarily | ||||||
6 | required to apportion business income under different | ||||||
7 | subsections of Section 304, but not to exceed the | ||||||
8 | addition modification required to be made for the same | ||||||
9 | taxable year under Section 203(b)(2)(E-12) for | ||||||
10 | interest paid, accrued, or incurred, directly or | ||||||
11 | indirectly, to the same person. This subparagraph (W) | ||||||
12 | is exempt from the provisions of Section 250;
| ||||||
13 | (X) An amount equal to the income from intangible | ||||||
14 | property taken into account for the taxable year (net | ||||||
15 | of the deductions allocable thereto) with respect to | ||||||
16 | transactions with (i) a foreign person who would be a | ||||||
17 | member of the taxpayer's unitary business group but for | ||||||
18 | the fact that the foreign person's business activity | ||||||
19 | outside the United States is 80% or more of that | ||||||
20 | person's total business activity and (ii) for taxable | ||||||
21 | years ending on or after December 31, 2008, to a person | ||||||
22 | who would be a member of the same unitary business | ||||||
23 | group but for the fact that the person is prohibited | ||||||
24 | under Section 1501(a)(27) from being included in the | ||||||
25 | unitary business group because he or she is ordinarily | ||||||
26 | required to apportion business income under different |
| |||||||
| |||||||
1 | subsections of Section 304, but not to exceed the | ||||||
2 | addition modification required to be made for the same | ||||||
3 | taxable year under Section 203(b)(2)(E-13) for | ||||||
4 | intangible expenses and costs paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to the same foreign | ||||||
6 | person. This subparagraph (X) is exempt from the | ||||||
7 | provisions of Section 250;
| ||||||
8 | (Y) For taxable years ending on or after December | ||||||
9 | 31, 2011, in the case of a taxpayer who was required to | ||||||
10 | add back any insurance premiums under Section | ||||||
11 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
12 | that part of a reimbursement received from the | ||||||
13 | insurance company equal to the amount of the expense or | ||||||
14 | loss (including expenses incurred by the insurance | ||||||
15 | company) that would have been taken into account as a | ||||||
16 | deduction for federal income tax purposes if the | ||||||
17 | expense or loss had been uninsured. If a taxpayer makes | ||||||
18 | the election provided for by this subparagraph (Y), the | ||||||
19 | insurer to which the premiums were paid must add back | ||||||
20 | to income the amount subtracted by the taxpayer | ||||||
21 | pursuant to this subparagraph (Y). This subparagraph | ||||||
22 | (Y) is exempt from the provisions of Section 250; and | ||||||
23 | (Z) The difference between the nondeductible | ||||||
24 | controlled foreign corporation dividends under Section | ||||||
25 | 965(e)(3) of the Internal Revenue Code over the taxable | ||||||
26 | income of the taxpayer, computed without regard to |
| |||||||
| |||||||
1 | Section 965(e)(2)(A) of the Internal Revenue Code, and | ||||||
2 | without regard to any net operating loss deduction. | ||||||
3 | This subparagraph (Z) is exempt from the provisions of | ||||||
4 | Section 250. | ||||||
5 | (3) Special rule. For purposes of paragraph (2)(A), | ||||||
6 | "gross income"
in the case of a life insurance company, for | ||||||
7 | tax years ending on and after
December 31, 1994,
and prior | ||||||
8 | to December 31, 2011, shall mean the gross investment | ||||||
9 | income for the taxable year and, for tax years ending on or | ||||||
10 | after December 31, 2011, shall mean all amounts included in | ||||||
11 | life insurance gross income under Section 803(a)(3) of the | ||||||
12 | Internal Revenue Code.
| ||||||
13 | (c) Trusts and estates. | ||||||
14 | (1) In general. In the case of a trust or estate, base | ||||||
15 | income means
an amount equal to the taxpayer's taxable | ||||||
16 | income for the taxable year as
modified by paragraph (2). | ||||||
17 | (2) Modifications. Subject to the provisions of | ||||||
18 | paragraph (3), the
taxable income referred to in paragraph | ||||||
19 | (1) shall be modified by adding
thereto the sum of the | ||||||
20 | following amounts: | ||||||
21 | (A) An amount equal to all amounts paid or accrued | ||||||
22 | to the taxpayer
as interest or dividends during the | ||||||
23 | taxable year to the extent excluded
from gross income | ||||||
24 | in the computation of taxable income; | ||||||
25 | (B) In the case of (i) an estate, $600; (ii) a |
| |||||||
| |||||||
1 | trust which, under
its governing instrument, is | ||||||
2 | required to distribute all of its income
currently, | ||||||
3 | $300; and (iii) any other trust, $100, but in each such | ||||||
4 | case,
only to the extent such amount was deducted in | ||||||
5 | the computation of
taxable income; | ||||||
6 | (C) An amount equal to the amount of tax imposed by | ||||||
7 | this Act to the
extent deducted from gross income in | ||||||
8 | the computation of taxable income
for the taxable year; | ||||||
9 | (D) The amount of any net operating loss deduction | ||||||
10 | taken in arriving at
taxable income, other than a net | ||||||
11 | operating loss carried forward from a
taxable year | ||||||
12 | ending prior to December 31, 1986; | ||||||
13 | (E) For taxable years in which a net operating loss | ||||||
14 | carryback or
carryforward from a taxable year ending | ||||||
15 | prior to December 31, 1986 is an
element of taxable | ||||||
16 | income under paragraph (1) of subsection (e) or | ||||||
17 | subparagraph
(E) of paragraph (2) of subsection (e), | ||||||
18 | the amount by which addition
modifications other than | ||||||
19 | those provided by this subparagraph (E) exceeded
| ||||||
20 | subtraction modifications in such taxable year, with | ||||||
21 | the following limitations
applied in the order that | ||||||
22 | they are listed: | ||||||
23 | (i) the addition modification relating to the | ||||||
24 | net operating loss
carried back or forward to the | ||||||
25 | taxable year from any taxable year ending
prior to | ||||||
26 | December 31, 1986 shall be reduced by the amount of |
| |||||||
| |||||||
1 | addition
modification under this subparagraph (E) | ||||||
2 | which related to that net
operating loss and which | ||||||
3 | was taken into account in calculating the base
| ||||||
4 | income of an earlier taxable year, and | ||||||
5 | (ii) the addition modification relating to the | ||||||
6 | net operating loss
carried back or forward to the | ||||||
7 | taxable year from any taxable year ending
prior to | ||||||
8 | December 31, 1986 shall not exceed the amount of | ||||||
9 | such carryback or
carryforward; | ||||||
10 | For taxable years in which there is a net operating | ||||||
11 | loss carryback or
carryforward from more than one other | ||||||
12 | taxable year ending prior to December
31, 1986, the | ||||||
13 | addition modification provided in this subparagraph | ||||||
14 | (E) shall
be the sum of the amounts computed | ||||||
15 | independently under the preceding
provisions of this | ||||||
16 | subparagraph (E) for each such taxable year; | ||||||
17 | (F) For taxable years ending on or after January 1, | ||||||
18 | 1989, an amount
equal to the tax deducted pursuant to | ||||||
19 | Section 164 of the Internal Revenue
Code if the trust | ||||||
20 | or estate is claiming the same tax for purposes of the
| ||||||
21 | Illinois foreign tax credit under Section 601 of this | ||||||
22 | Act; | ||||||
23 | (G) An amount equal to the amount of the capital | ||||||
24 | gain deduction
allowable under the Internal Revenue | ||||||
25 | Code, to the extent deducted from
gross income in the | ||||||
26 | computation of taxable income; |
| |||||||
| |||||||
1 | (G-5) For taxable years ending after December 31, | ||||||
2 | 1997, an
amount equal to any eligible remediation costs | ||||||
3 | that the trust or estate
deducted in computing adjusted | ||||||
4 | gross income and for which the trust
or estate claims a | ||||||
5 | credit under subsection (l) of Section 201; | ||||||
6 | (G-10) For taxable years 2001 and thereafter, an | ||||||
7 | amount equal to the
bonus depreciation deduction taken | ||||||
8 | on the taxpayer's federal income tax return for the | ||||||
9 | taxable
year under subsection (k) of Section 168 of the | ||||||
10 | Internal Revenue Code; and | ||||||
11 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
12 | or otherwise disposes of property for which the | ||||||
13 | taxpayer was required in any taxable year to
make an | ||||||
14 | addition modification under subparagraph (G-10), then | ||||||
15 | an amount equal
to the aggregate amount of the | ||||||
16 | deductions taken in all taxable
years under | ||||||
17 | subparagraph (R) with respect to that property. | ||||||
18 | If the taxpayer continues to own property through | ||||||
19 | the last day of the last tax year for which the | ||||||
20 | taxpayer may claim a depreciation deduction for | ||||||
21 | federal income tax purposes and for which the taxpayer | ||||||
22 | was allowed in any taxable year to make a subtraction | ||||||
23 | modification under subparagraph (R), then an amount | ||||||
24 | equal to that subtraction modification.
| ||||||
25 | The taxpayer is required to make the addition | ||||||
26 | modification under this
subparagraph
only once with |
| |||||||
| |||||||
1 | respect to any one piece of property; | ||||||
2 | (G-12) An amount equal to the amount otherwise | ||||||
3 | allowed as a deduction in computing base income for | ||||||
4 | interest paid, accrued, or incurred, directly or | ||||||
5 | indirectly, (i) for taxable years ending on or after | ||||||
6 | December 31, 2004, to a foreign person who would be a | ||||||
7 | member of the same unitary business group but for the | ||||||
8 | fact that the foreign person's business activity | ||||||
9 | outside the United States is 80% or more of the foreign | ||||||
10 | person's total business activity and (ii) for taxable | ||||||
11 | years ending on or after December 31, 2008, to a person | ||||||
12 | who would be a member of the same unitary business | ||||||
13 | group but for the fact that the person is prohibited | ||||||
14 | under Section 1501(a)(27) from being included in the | ||||||
15 | unitary business group because he or she is ordinarily | ||||||
16 | required to apportion business income under different | ||||||
17 | subsections of Section 304. The addition modification | ||||||
18 | required by this subparagraph shall be reduced to the | ||||||
19 | extent that dividends were included in base income of | ||||||
20 | the unitary group for the same taxable year and | ||||||
21 | received by the taxpayer or by a member of the | ||||||
22 | taxpayer's unitary business group (including amounts | ||||||
23 | included in gross income pursuant to Sections 951 | ||||||
24 | through 964 of the Internal Revenue Code and amounts | ||||||
25 | included in gross income under Section 78 of the | ||||||
26 | Internal Revenue Code) with respect to the stock of the |
| |||||||
| |||||||
1 | same person to whom the interest was paid, accrued, or | ||||||
2 | incurred.
| ||||||
3 | This paragraph shall not apply to the following:
| ||||||
4 | (i) an item of interest paid, accrued, or | ||||||
5 | incurred, directly or indirectly, to a person who | ||||||
6 | is subject in a foreign country or state, other | ||||||
7 | than a state which requires mandatory unitary | ||||||
8 | reporting, to a tax on or measured by net income | ||||||
9 | with respect to such interest; or | ||||||
10 | (ii) an item of interest paid, accrued, or | ||||||
11 | incurred, directly or indirectly, to a person if | ||||||
12 | the taxpayer can establish, based on a | ||||||
13 | preponderance of the evidence, both of the | ||||||
14 | following: | ||||||
15 | (a) the person, during the same taxable | ||||||
16 | year, paid, accrued, or incurred, the interest | ||||||
17 | to a person that is not a related member, and | ||||||
18 | (b) the transaction giving rise to the | ||||||
19 | interest expense between the taxpayer and the | ||||||
20 | person did not have as a principal purpose the | ||||||
21 | avoidance of Illinois income tax, and is paid | ||||||
22 | pursuant to a contract or agreement that | ||||||
23 | reflects an arm's-length interest rate and | ||||||
24 | terms; or
| ||||||
25 | (iii) the taxpayer can establish, based on | ||||||
26 | clear and convincing evidence, that the interest |
| |||||||
| |||||||
1 | paid, accrued, or incurred relates to a contract or | ||||||
2 | agreement entered into at arm's-length rates and | ||||||
3 | terms and the principal purpose for the payment is | ||||||
4 | not federal or Illinois tax avoidance; or
| ||||||
5 | (iv) an item of interest paid, accrued, or | ||||||
6 | incurred, directly or indirectly, to a person if | ||||||
7 | the taxpayer establishes by clear and convincing | ||||||
8 | evidence that the adjustments are unreasonable; or | ||||||
9 | if the taxpayer and the Director agree in writing | ||||||
10 | to the application or use of an alternative method | ||||||
11 | of apportionment under Section 304(f).
| ||||||
12 | Nothing in this subsection shall preclude the | ||||||
13 | Director from making any other adjustment | ||||||
14 | otherwise allowed under Section 404 of this Act for | ||||||
15 | any tax year beginning after the effective date of | ||||||
16 | this amendment provided such adjustment is made | ||||||
17 | pursuant to regulation adopted by the Department | ||||||
18 | and such regulations provide methods and standards | ||||||
19 | by which the Department will utilize its authority | ||||||
20 | under Section 404 of this Act;
| ||||||
21 | (G-13) An amount equal to the amount of intangible | ||||||
22 | expenses and costs otherwise allowed as a deduction in | ||||||
23 | computing base income, and that were paid, accrued, or | ||||||
24 | incurred, directly or indirectly, (i) for taxable | ||||||
25 | years ending on or after December 31, 2004, to a | ||||||
26 | foreign person who would be a member of the same |
| |||||||
| |||||||
1 | unitary business group but for the fact that the | ||||||
2 | foreign person's business activity outside the United | ||||||
3 | States is 80% or more of that person's total business | ||||||
4 | activity and (ii) for taxable years ending on or after | ||||||
5 | December 31, 2008, to a person who would be a member of | ||||||
6 | the same unitary business group but for the fact that | ||||||
7 | the person is prohibited under Section 1501(a)(27) | ||||||
8 | from being included in the unitary business group | ||||||
9 | because he or she is ordinarily required to apportion | ||||||
10 | business income under different subsections of Section | ||||||
11 | 304. The addition modification required by this | ||||||
12 | subparagraph shall be reduced to the extent that | ||||||
13 | dividends were included in base income of the unitary | ||||||
14 | group for the same taxable year and received by the | ||||||
15 | taxpayer or by a member of the taxpayer's unitary | ||||||
16 | business group (including amounts included in gross | ||||||
17 | income pursuant to Sections 951 through 964 of the | ||||||
18 | Internal Revenue Code and amounts included in gross | ||||||
19 | income under Section 78 of the Internal Revenue Code) | ||||||
20 | with respect to the stock of the same person to whom | ||||||
21 | the intangible expenses and costs were directly or | ||||||
22 | indirectly paid, incurred, or accrued. The preceding | ||||||
23 | sentence shall not apply to the extent that the same | ||||||
24 | dividends caused a reduction to the addition | ||||||
25 | modification required under Section 203(c)(2)(G-12) of | ||||||
26 | this Act. As used in this subparagraph, the term |
| |||||||
| |||||||
1 | "intangible expenses and costs" includes: (1) | ||||||
2 | expenses, losses, and costs for or related to the | ||||||
3 | direct or indirect acquisition, use, maintenance or | ||||||
4 | management, ownership, sale, exchange, or any other | ||||||
5 | disposition of intangible property; (2) losses | ||||||
6 | incurred, directly or indirectly, from factoring | ||||||
7 | transactions or discounting transactions; (3) royalty, | ||||||
8 | patent, technical, and copyright fees; (4) licensing | ||||||
9 | fees; and (5) other similar expenses and costs. For | ||||||
10 | purposes of this subparagraph, "intangible property" | ||||||
11 | includes patents, patent applications, trade names, | ||||||
12 | trademarks, service marks, copyrights, mask works, | ||||||
13 | trade secrets, and similar types of intangible assets. | ||||||
14 | This paragraph shall not apply to the following: | ||||||
15 | (i) any item of intangible expenses or costs | ||||||
16 | paid, accrued, or incurred, directly or | ||||||
17 | indirectly, from a transaction with a person who is | ||||||
18 | subject in a foreign country or state, other than a | ||||||
19 | state which requires mandatory unitary reporting, | ||||||
20 | to a tax on or measured by net income with respect | ||||||
21 | to such item; or | ||||||
22 | (ii) any item of intangible expense or cost | ||||||
23 | paid, accrued, or incurred, directly or | ||||||
24 | indirectly, if the taxpayer can establish, based | ||||||
25 | on a preponderance of the evidence, both of the | ||||||
26 | following: |
| |||||||
| |||||||
1 | (a) the person during the same taxable | ||||||
2 | year paid, accrued, or incurred, the | ||||||
3 | intangible expense or cost to a person that is | ||||||
4 | not a related member, and | ||||||
5 | (b) the transaction giving rise to the | ||||||
6 | intangible expense or cost between the | ||||||
7 | taxpayer and the person did not have as a | ||||||
8 | principal purpose the avoidance of Illinois | ||||||
9 | income tax, and is paid pursuant to a contract | ||||||
10 | or agreement that reflects arm's-length terms; | ||||||
11 | or | ||||||
12 | (iii) any item of intangible expense or cost | ||||||
13 | paid, accrued, or incurred, directly or | ||||||
14 | indirectly, from a transaction with a person if the | ||||||
15 | taxpayer establishes by clear and convincing | ||||||
16 | evidence, that the adjustments are unreasonable; | ||||||
17 | or if the taxpayer and the Director agree in | ||||||
18 | writing to the application or use of an alternative | ||||||
19 | method of apportionment under Section 304(f);
| ||||||
20 | Nothing in this subsection shall preclude the | ||||||
21 | Director from making any other adjustment | ||||||
22 | otherwise allowed under Section 404 of this Act for | ||||||
23 | any tax year beginning after the effective date of | ||||||
24 | this amendment provided such adjustment is made | ||||||
25 | pursuant to regulation adopted by the Department | ||||||
26 | and such regulations provide methods and standards |
| |||||||
| |||||||
1 | by which the Department will utilize its authority | ||||||
2 | under Section 404 of this Act;
| ||||||
3 | (G-14) For taxable years ending on or after | ||||||
4 | December 31, 2008, an amount equal to the amount of | ||||||
5 | insurance premium expenses and costs otherwise allowed | ||||||
6 | as a deduction in computing base income, and that were | ||||||
7 | paid, accrued, or incurred, directly or indirectly, to | ||||||
8 | a person who would be a member of the same unitary | ||||||
9 | business group but for the fact that the person is | ||||||
10 | prohibited under Section 1501(a)(27) from being | ||||||
11 | included in the unitary business group because he or | ||||||
12 | she is ordinarily required to apportion business | ||||||
13 | income under different subsections of Section 304. The | ||||||
14 | addition modification required by this subparagraph | ||||||
15 | shall be reduced to the extent that dividends were | ||||||
16 | included in base income of the unitary group for the | ||||||
17 | same taxable year and received by the taxpayer or by a | ||||||
18 | member of the taxpayer's unitary business group | ||||||
19 | (including amounts included in gross income under | ||||||
20 | Sections 951 through 964 of the Internal Revenue Code | ||||||
21 | and amounts included in gross income under Section 78 | ||||||
22 | of the Internal Revenue Code) with respect to the stock | ||||||
23 | of the same person to whom the premiums and costs were | ||||||
24 | directly or indirectly paid, incurred, or accrued. The | ||||||
25 | preceding sentence does not apply to the extent that | ||||||
26 | the same dividends caused a reduction to the addition |
| |||||||
| |||||||
1 | modification required under Section 203(c)(2)(G-12) or | ||||||
2 | Section 203(c)(2)(G-13) of this Act; | ||||||
3 | (G-15) An amount equal to the credit allowable to | ||||||
4 | the taxpayer under Section 218(a) of this Act, | ||||||
5 | determined without regard to Section 218(c) of this | ||||||
6 | Act; | ||||||
7 | (G-16) For taxable years ending on or after | ||||||
8 | December 31, 2017, an amount equal to the deduction | ||||||
9 | allowed under Section 199 of the Internal Revenue Code | ||||||
10 | for the taxable year; | ||||||
11 | and by deducting from the total so obtained the sum of the | ||||||
12 | following
amounts: | ||||||
13 | (H) An amount equal to all amounts included in such | ||||||
14 | total pursuant
to the provisions of Sections 402(a), | ||||||
15 | 402(c), 403(a), 403(b), 406(a), 407(a)
and 408 of the | ||||||
16 | Internal Revenue Code or included in such total as
| ||||||
17 | distributions under the provisions of any retirement | ||||||
18 | or disability plan for
employees of any governmental | ||||||
19 | agency or unit, or retirement payments to
retired | ||||||
20 | partners, which payments are excluded in computing net | ||||||
21 | earnings
from self employment by Section 1402 of the | ||||||
22 | Internal Revenue Code and
regulations adopted pursuant | ||||||
23 | thereto; | ||||||
24 | (I) The valuation limitation amount; | ||||||
25 | (J) An amount equal to the amount of any tax | ||||||
26 | imposed by this Act
which was refunded to the taxpayer |
| |||||||
| |||||||
1 | and included in such total for the
taxable year; | ||||||
2 | (K) An amount equal to all amounts included in | ||||||
3 | taxable income as
modified by subparagraphs (A), (B), | ||||||
4 | (C), (D), (E), (F) and (G) which
are exempt from | ||||||
5 | taxation by this State either by reason of its statutes | ||||||
6 | or
Constitution
or by reason of the Constitution, | ||||||
7 | treaties or statutes of the United States;
provided | ||||||
8 | that, in the case of any statute of this State that | ||||||
9 | exempts income
derived from bonds or other obligations | ||||||
10 | from the tax imposed under this Act,
the amount | ||||||
11 | exempted shall be the interest net of bond premium | ||||||
12 | amortization; | ||||||
13 | (L) With the exception of any amounts subtracted | ||||||
14 | under subparagraph
(K),
an amount equal to the sum of | ||||||
15 | all amounts disallowed as
deductions by (i) Sections | ||||||
16 | 171(a)(2) and 265(a)(2) of the Internal Revenue
Code, | ||||||
17 | and all amounts of expenses allocable
to interest and | ||||||
18 | disallowed as deductions by Section 265(a)(1) of the | ||||||
19 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
20 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
21 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
22 | Code, plus, (iii) for taxable years ending on or after | ||||||
23 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
24 | Revenue Code and, for taxable years ending on or after | ||||||
25 | December 31, 2008, any amount included in gross income | ||||||
26 | under Section 87 of the Internal Revenue Code; the |
| |||||||
| |||||||
1 | provisions of this
subparagraph are exempt from the | ||||||
2 | provisions of Section 250; | ||||||
3 | (M) An amount equal to those dividends included in | ||||||
4 | such total
which were paid by a corporation which | ||||||
5 | conducts business operations in a River Edge | ||||||
6 | Redevelopment Zone or zones created under the River | ||||||
7 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
8 | all of its operations in a River Edge Redevelopment | ||||||
9 | Zone or zones. This subparagraph (M) is exempt from the | ||||||
10 | provisions of Section 250; | ||||||
11 | (N) An amount equal to any contribution made to a | ||||||
12 | job training
project established pursuant to the Tax | ||||||
13 | Increment Allocation
Redevelopment Act; | ||||||
14 | (O) An amount equal to those dividends included in | ||||||
15 | such total
that were paid by a corporation that | ||||||
16 | conducts business operations in a
federally designated | ||||||
17 | Foreign Trade Zone or Sub-Zone and that is designated
a | ||||||
18 | High Impact Business located in Illinois; provided | ||||||
19 | that dividends eligible
for the deduction provided in | ||||||
20 | subparagraph (M) of paragraph (2) of this
subsection | ||||||
21 | shall not be eligible for the deduction provided under | ||||||
22 | this
subparagraph (O); | ||||||
23 | (P) An amount equal to the amount of the deduction | ||||||
24 | used to compute the
federal income tax credit for | ||||||
25 | restoration of substantial amounts held under
claim of | ||||||
26 | right for the taxable year pursuant to Section 1341 of |
| |||||||
| |||||||
1 | the
Internal Revenue Code; | ||||||
2 | (Q) For taxable year 1999 and thereafter, an amount | ||||||
3 | equal to the
amount of any
(i) distributions, to the | ||||||
4 | extent includible in gross income for
federal income | ||||||
5 | tax purposes, made to the taxpayer because of
his or | ||||||
6 | her status as a victim of
persecution for racial or | ||||||
7 | religious reasons by Nazi Germany or any other Axis
| ||||||
8 | regime or as an heir of the victim and (ii) items
of | ||||||
9 | income, to the extent
includible in gross income for | ||||||
10 | federal income tax purposes, attributable to,
derived | ||||||
11 | from or in any way related to assets stolen from, | ||||||
12 | hidden from, or
otherwise lost to a victim of
| ||||||
13 | persecution for racial or religious reasons by Nazi
| ||||||
14 | Germany or any other Axis regime
immediately prior to, | ||||||
15 | during, and immediately after World War II, including,
| ||||||
16 | but
not limited to, interest on the proceeds receivable | ||||||
17 | as insurance
under policies issued to a victim of | ||||||
18 | persecution for racial or religious
reasons by Nazi | ||||||
19 | Germany or any other Axis regime by European insurance
| ||||||
20 | companies
immediately prior to and during World War II;
| ||||||
21 | provided, however, this subtraction from federal | ||||||
22 | adjusted gross income does not
apply to assets acquired | ||||||
23 | with such assets or with the proceeds from the sale of
| ||||||
24 | such assets; provided, further, this paragraph shall | ||||||
25 | only apply to a taxpayer
who was the first recipient of | ||||||
26 | such assets after their recovery and who is a
victim of
|
| |||||||
| |||||||
1 | persecution for racial or religious reasons
by Nazi | ||||||
2 | Germany or any other Axis regime or as an heir of the | ||||||
3 | victim. The
amount of and the eligibility for any | ||||||
4 | public assistance, benefit, or
similar entitlement is | ||||||
5 | not affected by the inclusion of items (i) and (ii) of
| ||||||
6 | this paragraph in gross income for federal income tax | ||||||
7 | purposes.
This paragraph is exempt from the provisions | ||||||
8 | of Section 250; | ||||||
9 | (R) For taxable years 2001 and thereafter, for the | ||||||
10 | taxable year in
which the bonus depreciation deduction
| ||||||
11 | is taken on the taxpayer's federal income tax return | ||||||
12 | under
subsection (k) of Section 168 of the Internal | ||||||
13 | Revenue Code and for each
applicable taxable year | ||||||
14 | thereafter, an amount equal to "x", where: | ||||||
15 | (1) "y" equals the amount of the depreciation | ||||||
16 | deduction taken for the
taxable year
on the | ||||||
17 | taxpayer's federal income tax return on property | ||||||
18 | for which the bonus
depreciation deduction
was | ||||||
19 | taken in any year under subsection (k) of Section | ||||||
20 | 168 of the Internal
Revenue Code, but not including | ||||||
21 | the bonus depreciation deduction; | ||||||
22 | (2) for taxable years ending on or before | ||||||
23 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
24 | and then divided by 70 (or "y"
multiplied by | ||||||
25 | 0.429); and | ||||||
26 | (3) for taxable years ending after December |
| |||||||
| |||||||
1 | 31, 2005: | ||||||
2 | (i) for property on which a bonus | ||||||
3 | depreciation deduction of 30% of the adjusted | ||||||
4 | basis was taken, "x" equals "y" multiplied by | ||||||
5 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
6 | 0.429); and | ||||||
7 | (ii) for property on which a bonus | ||||||
8 | depreciation deduction of 50% of the adjusted | ||||||
9 | basis was taken, "x" equals "y" multiplied by | ||||||
10 | 1.0. | ||||||
11 | The aggregate amount deducted under this | ||||||
12 | subparagraph in all taxable
years for any one piece of | ||||||
13 | property may not exceed the amount of the bonus
| ||||||
14 | depreciation deduction
taken on that property on the | ||||||
15 | taxpayer's federal income tax return under
subsection | ||||||
16 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
17 | subparagraph (R) is exempt from the provisions of | ||||||
18 | Section 250; | ||||||
19 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
20 | otherwise disposes of
property for which the taxpayer | ||||||
21 | was required in any taxable year to make an
addition | ||||||
22 | modification under subparagraph (G-10), then an amount | ||||||
23 | equal to that
addition modification. | ||||||
24 | If the taxpayer continues to own property through | ||||||
25 | the last day of the last tax year for which the | ||||||
26 | taxpayer may claim a depreciation deduction for |
| |||||||
| |||||||
1 | federal income tax purposes and for which the taxpayer | ||||||
2 | was required in any taxable year to make an addition | ||||||
3 | modification under subparagraph (G-10), then an amount | ||||||
4 | equal to that addition modification.
| ||||||
5 | The taxpayer is allowed to take the deduction under | ||||||
6 | this subparagraph
only once with respect to any one | ||||||
7 | piece of property. | ||||||
8 | This subparagraph (S) is exempt from the | ||||||
9 | provisions of Section 250; | ||||||
10 | (T) The amount of (i) any interest income (net of | ||||||
11 | the deductions allocable thereto) taken into account | ||||||
12 | for the taxable year with respect to a transaction with | ||||||
13 | a taxpayer that is required to make an addition | ||||||
14 | modification with respect to such transaction under | ||||||
15 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
16 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
17 | the amount of such addition modification and
(ii) any | ||||||
18 | income from intangible property (net of the deductions | ||||||
19 | allocable thereto) taken into account for the taxable | ||||||
20 | year with respect to a transaction with a taxpayer that | ||||||
21 | is required to make an addition modification with | ||||||
22 | respect to such transaction under Section | ||||||
23 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
24 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
25 | addition modification. This subparagraph (T) is exempt | ||||||
26 | from the provisions of Section 250;
|
| |||||||
| |||||||
1 | (U) An amount equal to the interest income taken | ||||||
2 | into account for the taxable year (net of the | ||||||
3 | deductions allocable thereto) with respect to | ||||||
4 | transactions with (i) a foreign person who would be a | ||||||
5 | member of the taxpayer's unitary business group but for | ||||||
6 | the fact the foreign person's business activity | ||||||
7 | outside the United States is 80% or more of that | ||||||
8 | person's total business activity and (ii) for taxable | ||||||
9 | years ending on or after December 31, 2008, to a person | ||||||
10 | who would be a member of the same unitary business | ||||||
11 | group but for the fact that the person is prohibited | ||||||
12 | under Section 1501(a)(27) from being included in the | ||||||
13 | unitary business group because he or she is ordinarily | ||||||
14 | required to apportion business income under different | ||||||
15 | subsections of Section 304, but not to exceed the | ||||||
16 | addition modification required to be made for the same | ||||||
17 | taxable year under Section 203(c)(2)(G-12) for | ||||||
18 | interest paid, accrued, or incurred, directly or | ||||||
19 | indirectly, to the same person. This subparagraph (U) | ||||||
20 | is exempt from the provisions of Section 250; | ||||||
21 | (V) An amount equal to the income from intangible | ||||||
22 | property taken into account for the taxable year (net | ||||||
23 | of the deductions allocable thereto) with respect to | ||||||
24 | transactions with (i) a foreign person who would be a | ||||||
25 | member of the taxpayer's unitary business group but for | ||||||
26 | the fact that the foreign person's business activity |
| |||||||
| |||||||
1 | outside the United States is 80% or more of that | ||||||
2 | person's total business activity and (ii) for taxable | ||||||
3 | years ending on or after December 31, 2008, to a person | ||||||
4 | who would be a member of the same unitary business | ||||||
5 | group but for the fact that the person is prohibited | ||||||
6 | under Section 1501(a)(27) from being included in the | ||||||
7 | unitary business group because he or she is ordinarily | ||||||
8 | required to apportion business income under different | ||||||
9 | subsections of Section 304, but not to exceed the | ||||||
10 | addition modification required to be made for the same | ||||||
11 | taxable year under Section 203(c)(2)(G-13) for | ||||||
12 | intangible expenses and costs paid, accrued, or | ||||||
13 | incurred, directly or indirectly, to the same foreign | ||||||
14 | person. This subparagraph (V) is exempt from the | ||||||
15 | provisions of Section 250;
| ||||||
16 | (W) in the case of an estate, an amount equal to | ||||||
17 | all amounts included in such total pursuant to the | ||||||
18 | provisions of Section 111 of the Internal Revenue Code | ||||||
19 | as a recovery of items previously deducted by the | ||||||
20 | decedent from adjusted gross income in the computation | ||||||
21 | of taxable income. This subparagraph (W) is exempt from | ||||||
22 | Section 250; | ||||||
23 | (X) an amount equal to the refund included in such | ||||||
24 | total of any tax deducted for federal income tax | ||||||
25 | purposes, to the extent that deduction was added back | ||||||
26 | under subparagraph (F). This subparagraph (X) is |
| |||||||
| |||||||
1 | exempt from the provisions of Section 250; | ||||||
2 | (Y) For taxable years ending on or after December | ||||||
3 | 31, 2011, in the case of a taxpayer who was required to | ||||||
4 | add back any insurance premiums under Section | ||||||
5 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
6 | that part of a reimbursement received from the | ||||||
7 | insurance company equal to the amount of the expense or | ||||||
8 | loss (including expenses incurred by the insurance | ||||||
9 | company) that would have been taken into account as a | ||||||
10 | deduction for federal income tax purposes if the | ||||||
11 | expense or loss had been uninsured. If a taxpayer makes | ||||||
12 | the election provided for by this subparagraph (Y), the | ||||||
13 | insurer to which the premiums were paid must add back | ||||||
14 | to income the amount subtracted by the taxpayer | ||||||
15 | pursuant to this subparagraph (Y). This subparagraph | ||||||
16 | (Y) is exempt from the provisions of Section 250; and | ||||||
17 | (Z) For taxable years beginning after December 31, | ||||||
18 | 2018 and before January 1, 2026, the amount of excess | ||||||
19 | business loss of the taxpayer disallowed as a deduction | ||||||
20 | by Section 461(l)(1)(B) of the Internal Revenue Code. | ||||||
21 | (3) Limitation. The amount of any modification | ||||||
22 | otherwise required
under this subsection shall, under | ||||||
23 | regulations prescribed by the
Department, be adjusted by | ||||||
24 | any amounts included therein which were
properly paid, | ||||||
25 | credited, or required to be distributed, or permanently set
| ||||||
26 | aside for charitable purposes pursuant to Internal Revenue |
| |||||||
| |||||||
1 | Code Section
642(c) during the taxable year.
| ||||||
2 | (d) Partnerships. | ||||||
3 | (1) In general. In the case of a partnership, base | ||||||
4 | income means an
amount equal to the taxpayer's taxable | ||||||
5 | income for the taxable year as
modified by paragraph (2). | ||||||
6 | (2) Modifications. The taxable income referred to in | ||||||
7 | paragraph (1)
shall be modified by adding thereto the sum | ||||||
8 | of the following amounts: | ||||||
9 | (A) An amount equal to all amounts paid or accrued | ||||||
10 | to the taxpayer as
interest or dividends during the | ||||||
11 | taxable year to the extent excluded from
gross income | ||||||
12 | in the computation of taxable income; | ||||||
13 | (B) An amount equal to the amount of tax imposed by | ||||||
14 | this Act to the
extent deducted from gross income for | ||||||
15 | the taxable year; | ||||||
16 | (C) The amount of deductions allowed to the | ||||||
17 | partnership pursuant to
Section 707 (c) of the Internal | ||||||
18 | Revenue Code in calculating its taxable income; | ||||||
19 | (D) An amount equal to the amount of the capital | ||||||
20 | gain deduction
allowable under the Internal Revenue | ||||||
21 | Code, to the extent deducted from
gross income in the | ||||||
22 | computation of taxable income; | ||||||
23 | (D-5) For taxable years 2001 and thereafter, an | ||||||
24 | amount equal to the
bonus depreciation deduction taken | ||||||
25 | on the taxpayer's federal income tax return for the |
| |||||||
| |||||||
1 | taxable
year under subsection (k) of Section 168 of the | ||||||
2 | Internal Revenue Code; | ||||||
3 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
4 | or otherwise disposes of
property for which the | ||||||
5 | taxpayer was required in any taxable year to make an
| ||||||
6 | addition modification under subparagraph (D-5), then | ||||||
7 | an amount equal to the
aggregate amount of the | ||||||
8 | deductions taken in all taxable years
under | ||||||
9 | subparagraph (O) with respect to that property. | ||||||
10 | If the taxpayer continues to own property through | ||||||
11 | the last day of the last tax year for which the | ||||||
12 | taxpayer may claim a depreciation deduction for | ||||||
13 | federal income tax purposes and for which the taxpayer | ||||||
14 | was allowed in any taxable year to make a subtraction | ||||||
15 | modification under subparagraph (O), then an amount | ||||||
16 | equal to that subtraction modification.
| ||||||
17 | The taxpayer is required to make the addition | ||||||
18 | modification under this
subparagraph
only once with | ||||||
19 | respect to any one piece of property; | ||||||
20 | (D-7) An amount equal to the amount otherwise | ||||||
21 | allowed as a deduction in computing base income for | ||||||
22 | interest paid, accrued, or incurred, directly or | ||||||
23 | indirectly, (i) for taxable years ending on or after | ||||||
24 | December 31, 2004, to a foreign person who would be a | ||||||
25 | member of the same unitary business group but for the | ||||||
26 | fact the foreign person's business activity outside |
| |||||||
| |||||||
1 | the United States is 80% or more of the foreign | ||||||
2 | person's total business activity and (ii) for taxable | ||||||
3 | years ending on or after December 31, 2008, to a person | ||||||
4 | who would be a member of the same unitary business | ||||||
5 | group but for the fact that the person is prohibited | ||||||
6 | under Section 1501(a)(27) from being included in the | ||||||
7 | unitary business group because he or she is ordinarily | ||||||
8 | required to apportion business income under different | ||||||
9 | subsections of Section 304. The addition modification | ||||||
10 | required by this subparagraph shall be reduced to the | ||||||
11 | extent that dividends were included in base income of | ||||||
12 | the unitary group for the same taxable year and | ||||||
13 | received by the taxpayer or by a member of the | ||||||
14 | taxpayer's unitary business group (including amounts | ||||||
15 | included in gross income pursuant to Sections 951 | ||||||
16 | through 964 of the Internal Revenue Code and amounts | ||||||
17 | included in gross income under Section 78 of the | ||||||
18 | Internal Revenue Code) with respect to the stock of the | ||||||
19 | same person to whom the interest was paid, accrued, or | ||||||
20 | incurred.
| ||||||
21 | This paragraph shall not apply to the following:
| ||||||
22 | (i) an item of interest paid, accrued, or | ||||||
23 | incurred, directly or indirectly, to a person who | ||||||
24 | is subject in a foreign country or state, other | ||||||
25 | than a state which requires mandatory unitary | ||||||
26 | reporting, to a tax on or measured by net income |
| |||||||
| |||||||
1 | with respect to such interest; or | ||||||
2 | (ii) an item of interest paid, accrued, or | ||||||
3 | incurred, directly or indirectly, to a person if | ||||||
4 | the taxpayer can establish, based on a | ||||||
5 | preponderance of the evidence, both of the | ||||||
6 | following: | ||||||
7 | (a) the person, during the same taxable | ||||||
8 | year, paid, accrued, or incurred, the interest | ||||||
9 | to a person that is not a related member, and | ||||||
10 | (b) the transaction giving rise to the | ||||||
11 | interest expense between the taxpayer and the | ||||||
12 | person did not have as a principal purpose the | ||||||
13 | avoidance of Illinois income tax, and is paid | ||||||
14 | pursuant to a contract or agreement that | ||||||
15 | reflects an arm's-length interest rate and | ||||||
16 | terms; or
| ||||||
17 | (iii) the taxpayer can establish, based on | ||||||
18 | clear and convincing evidence, that the interest | ||||||
19 | paid, accrued, or incurred relates to a contract or | ||||||
20 | agreement entered into at arm's-length rates and | ||||||
21 | terms and the principal purpose for the payment is | ||||||
22 | not federal or Illinois tax avoidance; or
| ||||||
23 | (iv) an item of interest paid, accrued, or | ||||||
24 | incurred, directly or indirectly, to a person if | ||||||
25 | the taxpayer establishes by clear and convincing | ||||||
26 | evidence that the adjustments are unreasonable; or |
| |||||||
| |||||||
1 | if the taxpayer and the Director agree in writing | ||||||
2 | to the application or use of an alternative method | ||||||
3 | of apportionment under Section 304(f).
| ||||||
4 | Nothing in this subsection shall preclude the | ||||||
5 | Director from making any other adjustment | ||||||
6 | otherwise allowed under Section 404 of this Act for | ||||||
7 | any tax year beginning after the effective date of | ||||||
8 | this amendment provided such adjustment is made | ||||||
9 | pursuant to regulation adopted by the Department | ||||||
10 | and such regulations provide methods and standards | ||||||
11 | by which the Department will utilize its authority | ||||||
12 | under Section 404 of this Act; and
| ||||||
13 | (D-8) An amount equal to the amount of intangible | ||||||
14 | expenses and costs otherwise allowed as a deduction in | ||||||
15 | computing base income, and that were paid, accrued, or | ||||||
16 | incurred, directly or indirectly, (i) for taxable | ||||||
17 | years ending on or after December 31, 2004, to a | ||||||
18 | foreign person who would be a member of the same | ||||||
19 | unitary business group but for the fact that the | ||||||
20 | foreign person's business activity outside the United | ||||||
21 | States is 80% or more of that person's total business | ||||||
22 | activity and (ii) for taxable years ending on or after | ||||||
23 | December 31, 2008, to a person who would be a member of | ||||||
24 | the same unitary business group but for the fact that | ||||||
25 | the person is prohibited under Section 1501(a)(27) | ||||||
26 | from being included in the unitary business group |
| |||||||
| |||||||
1 | because he or she is ordinarily required to apportion | ||||||
2 | business income under different subsections of Section | ||||||
3 | 304. The addition modification required by this | ||||||
4 | subparagraph shall be reduced to the extent that | ||||||
5 | dividends were included in base income of the unitary | ||||||
6 | group for the same taxable year and received by the | ||||||
7 | taxpayer or by a member of the taxpayer's unitary | ||||||
8 | business group (including amounts included in gross | ||||||
9 | income pursuant to Sections 951 through 964 of the | ||||||
10 | Internal Revenue Code and amounts included in gross | ||||||
11 | income under Section 78 of the Internal Revenue Code) | ||||||
12 | with respect to the stock of the same person to whom | ||||||
13 | the intangible expenses and costs were directly or | ||||||
14 | indirectly paid, incurred or accrued. The preceding | ||||||
15 | sentence shall not apply to the extent that the same | ||||||
16 | dividends caused a reduction to the addition | ||||||
17 | modification required under Section 203(d)(2)(D-7) of | ||||||
18 | this Act. As used in this subparagraph, the term | ||||||
19 | "intangible expenses and costs" includes (1) expenses, | ||||||
20 | losses, and costs for, or related to, the direct or | ||||||
21 | indirect acquisition, use, maintenance or management, | ||||||
22 | ownership, sale, exchange, or any other disposition of | ||||||
23 | intangible property; (2) losses incurred, directly or | ||||||
24 | indirectly, from factoring transactions or discounting | ||||||
25 | transactions; (3) royalty, patent, technical, and | ||||||
26 | copyright fees; (4) licensing fees; and (5) other |
| |||||||
| |||||||
1 | similar expenses and costs. For purposes of this | ||||||
2 | subparagraph, "intangible property" includes patents, | ||||||
3 | patent applications, trade names, trademarks, service | ||||||
4 | marks, copyrights, mask works, trade secrets, and | ||||||
5 | similar types of intangible assets; | ||||||
6 | This paragraph shall not apply to the following: | ||||||
7 | (i) any item of intangible expenses or costs | ||||||
8 | paid, accrued, or incurred, directly or | ||||||
9 | indirectly, from a transaction with a person who is | ||||||
10 | subject in a foreign country or state, other than a | ||||||
11 | state which requires mandatory unitary reporting, | ||||||
12 | to a tax on or measured by net income with respect | ||||||
13 | to such item; or | ||||||
14 | (ii) any item of intangible expense or cost | ||||||
15 | paid, accrued, or incurred, directly or | ||||||
16 | indirectly, if the taxpayer can establish, based | ||||||
17 | on a preponderance of the evidence, both of the | ||||||
18 | following: | ||||||
19 | (a) the person during the same taxable | ||||||
20 | year paid, accrued, or incurred, the | ||||||
21 | intangible expense or cost to a person that is | ||||||
22 | not a related member, and | ||||||
23 | (b) the transaction giving rise to the | ||||||
24 | intangible expense or cost between the | ||||||
25 | taxpayer and the person did not have as a | ||||||
26 | principal purpose the avoidance of Illinois |
| |||||||
| |||||||
1 | income tax, and is paid pursuant to a contract | ||||||
2 | or agreement that reflects arm's-length terms; | ||||||
3 | or | ||||||
4 | (iii) any item of intangible expense or cost | ||||||
5 | paid, accrued, or incurred, directly or | ||||||
6 | indirectly, from a transaction with a person if the | ||||||
7 | taxpayer establishes by clear and convincing | ||||||
8 | evidence, that the adjustments are unreasonable; | ||||||
9 | or if the taxpayer and the Director agree in | ||||||
10 | writing to the application or use of an alternative | ||||||
11 | method of apportionment under Section 304(f);
| ||||||
12 | Nothing in this subsection shall preclude the | ||||||
13 | Director from making any other adjustment | ||||||
14 | otherwise allowed under Section 404 of this Act for | ||||||
15 | any tax year beginning after the effective date of | ||||||
16 | this amendment provided such adjustment is made | ||||||
17 | pursuant to regulation adopted by the Department | ||||||
18 | and such regulations provide methods and standards | ||||||
19 | by which the Department will utilize its authority | ||||||
20 | under Section 404 of this Act;
| ||||||
21 | (D-9) For taxable years ending on or after December | ||||||
22 | 31, 2008, an amount equal to the amount of insurance | ||||||
23 | premium expenses and costs otherwise allowed as a | ||||||
24 | deduction in computing base income, and that were paid, | ||||||
25 | accrued, or incurred, directly or indirectly, to a | ||||||
26 | person who would be a member of the same unitary |
| |||||||
| |||||||
1 | business group but for the fact that the person is | ||||||
2 | prohibited under Section 1501(a)(27) from being | ||||||
3 | included in the unitary business group because he or | ||||||
4 | she is ordinarily required to apportion business | ||||||
5 | income under different subsections of Section 304. The | ||||||
6 | addition modification required by this subparagraph | ||||||
7 | shall be reduced to the extent that dividends were | ||||||
8 | included in base income of the unitary group for the | ||||||
9 | same taxable year and received by the taxpayer or by a | ||||||
10 | member of the taxpayer's unitary business group | ||||||
11 | (including amounts included in gross income under | ||||||
12 | Sections 951 through 964 of the Internal Revenue Code | ||||||
13 | and amounts included in gross income under Section 78 | ||||||
14 | of the Internal Revenue Code) with respect to the stock | ||||||
15 | of the same person to whom the premiums and costs were | ||||||
16 | directly or indirectly paid, incurred, or accrued. The | ||||||
17 | preceding sentence does not apply to the extent that | ||||||
18 | the same dividends caused a reduction to the addition | ||||||
19 | modification required under Section 203(d)(2)(D-7) or | ||||||
20 | Section 203(d)(2)(D-8) of this Act; | ||||||
21 | (D-10) An amount equal to the credit allowable to | ||||||
22 | the taxpayer under Section 218(a) of this Act, | ||||||
23 | determined without regard to Section 218(c) of this | ||||||
24 | Act; | ||||||
25 | (D-11) For taxable years ending on or after | ||||||
26 | December 31, 2017, an amount equal to the deduction |
| |||||||
| |||||||
1 | allowed under Section 199 of the Internal Revenue Code | ||||||
2 | for the taxable year; | ||||||
3 | and by deducting from the total so obtained the following | ||||||
4 | amounts: | ||||||
5 | (E) The valuation limitation amount; | ||||||
6 | (F) An amount equal to the amount of any tax | ||||||
7 | imposed by this Act which
was refunded to the taxpayer | ||||||
8 | and included in such total for the taxable year; | ||||||
9 | (G) An amount equal to all amounts included in | ||||||
10 | taxable income as
modified by subparagraphs (A), (B), | ||||||
11 | (C) and (D) which are exempt from
taxation by this | ||||||
12 | State either by reason of its statutes or Constitution | ||||||
13 | or
by reason of
the Constitution, treaties or statutes | ||||||
14 | of the United States;
provided that, in the case of any | ||||||
15 | statute of this State that exempts income
derived from | ||||||
16 | bonds or other obligations from the tax imposed under | ||||||
17 | this Act,
the amount exempted shall be the interest net | ||||||
18 | of bond premium amortization; | ||||||
19 | (H) Any income of the partnership which | ||||||
20 | constitutes personal service
income as defined in | ||||||
21 | Section 1348(b)(1) of the Internal Revenue Code (as
in | ||||||
22 | effect December 31, 1981) or a reasonable allowance for | ||||||
23 | compensation
paid or accrued for services rendered by | ||||||
24 | partners to the partnership,
whichever is greater; | ||||||
25 | this subparagraph (H) is exempt from the provisions of | ||||||
26 | Section 250; |
| |||||||
| |||||||
1 | (I) An amount equal to all amounts of income | ||||||
2 | distributable to an entity
subject to the Personal | ||||||
3 | Property Tax Replacement Income Tax imposed by
| ||||||
4 | subsections (c) and (d) of Section 201 of this Act | ||||||
5 | including amounts
distributable to organizations | ||||||
6 | exempt from federal income tax by reason of
Section | ||||||
7 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
8 | (I) is exempt from the provisions of Section 250; | ||||||
9 | (J) With the exception of any amounts subtracted | ||||||
10 | under subparagraph
(G),
an amount equal to the sum of | ||||||
11 | all amounts disallowed as deductions
by (i) Sections | ||||||
12 | 171(a)(2) , and 265(a)(2) of the Internal Revenue Code, | ||||||
13 | and all amounts of expenses allocable to
interest and | ||||||
14 | disallowed as deductions by Section 265(a)(1) of the | ||||||
15 | Internal
Revenue Code;
and (ii) for taxable years
| ||||||
16 | ending on or after August 13, 1999, Sections
171(a)(2), | ||||||
17 | 265,
280C, and 832(b)(5)(B)(i) of the Internal Revenue | ||||||
18 | Code, plus, (iii) for taxable years ending on or after | ||||||
19 | December 31, 2011, Section 45G(e)(3) of the Internal | ||||||
20 | Revenue Code and, for taxable years ending on or after | ||||||
21 | December 31, 2008, any amount included in gross income | ||||||
22 | under Section 87 of the Internal Revenue Code; the | ||||||
23 | provisions of this
subparagraph are exempt from the | ||||||
24 | provisions of Section 250; | ||||||
25 | (K) An amount equal to those dividends included in | ||||||
26 | such total which were
paid by a corporation which |
| |||||||
| |||||||
1 | conducts business operations in a River Edge | ||||||
2 | Redevelopment Zone or zones created under the River | ||||||
3 | Edge Redevelopment Zone Act and
conducts substantially | ||||||
4 | all of its operations
from a River Edge Redevelopment | ||||||
5 | Zone or zones. This subparagraph (K) is exempt from the | ||||||
6 | provisions of Section 250; | ||||||
7 | (L) An amount equal to any contribution made to a | ||||||
8 | job training project
established pursuant to the Real | ||||||
9 | Property Tax Increment Allocation
Redevelopment Act; | ||||||
10 | (M) An amount equal to those dividends included in | ||||||
11 | such total
that were paid by a corporation that | ||||||
12 | conducts business operations in a
federally designated | ||||||
13 | Foreign Trade Zone or Sub-Zone and that is designated a
| ||||||
14 | High Impact Business located in Illinois; provided | ||||||
15 | that dividends eligible
for the deduction provided in | ||||||
16 | subparagraph (K) of paragraph (2) of this
subsection | ||||||
17 | shall not be eligible for the deduction provided under | ||||||
18 | this
subparagraph (M); | ||||||
19 | (N) An amount equal to the amount of the deduction | ||||||
20 | used to compute the
federal income tax credit for | ||||||
21 | restoration of substantial amounts held under
claim of | ||||||
22 | right for the taxable year pursuant to Section 1341 of | ||||||
23 | the
Internal Revenue Code; | ||||||
24 | (O) For taxable years 2001 and thereafter, for the | ||||||
25 | taxable year in
which the bonus depreciation deduction
| ||||||
26 | is taken on the taxpayer's federal income tax return |
| |||||||
| |||||||
1 | under
subsection (k) of Section 168 of the Internal | ||||||
2 | Revenue Code and for each
applicable taxable year | ||||||
3 | thereafter, an amount equal to "x", where: | ||||||
4 | (1) "y" equals the amount of the depreciation | ||||||
5 | deduction taken for the
taxable year
on the | ||||||
6 | taxpayer's federal income tax return on property | ||||||
7 | for which the bonus
depreciation deduction
was | ||||||
8 | taken in any year under subsection (k) of Section | ||||||
9 | 168 of the Internal
Revenue Code, but not including | ||||||
10 | the bonus depreciation deduction; | ||||||
11 | (2) for taxable years ending on or before | ||||||
12 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
13 | and then divided by 70 (or "y"
multiplied by | ||||||
14 | 0.429); and | ||||||
15 | (3) for taxable years ending after December | ||||||
16 | 31, 2005: | ||||||
17 | (i) for property on which a bonus | ||||||
18 | depreciation deduction of 30% of the adjusted | ||||||
19 | basis was taken, "x" equals "y" multiplied by | ||||||
20 | 30 and then divided by 70 (or "y"
multiplied by | ||||||
21 | 0.429); and | ||||||
22 | (ii) for property on which a bonus | ||||||
23 | depreciation deduction of 50% of the adjusted | ||||||
24 | basis was taken, "x" equals "y" multiplied by | ||||||
25 | 1.0. | ||||||
26 | The aggregate amount deducted under this |
| |||||||
| |||||||
1 | subparagraph in all taxable
years for any one piece of | ||||||
2 | property may not exceed the amount of the bonus
| ||||||
3 | depreciation deduction
taken on that property on the | ||||||
4 | taxpayer's federal income tax return under
subsection | ||||||
5 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
6 | subparagraph (O) is exempt from the provisions of | ||||||
7 | Section 250; | ||||||
8 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
9 | otherwise disposes of
property for which the taxpayer | ||||||
10 | was required in any taxable year to make an
addition | ||||||
11 | modification under subparagraph (D-5), then an amount | ||||||
12 | equal to that
addition modification. | ||||||
13 | If the taxpayer continues to own property through | ||||||
14 | the last day of the last tax year for which the | ||||||
15 | taxpayer may claim a depreciation deduction for | ||||||
16 | federal income tax purposes and for which the taxpayer | ||||||
17 | was required in any taxable year to make an addition | ||||||
18 | modification under subparagraph (D-5), then an amount | ||||||
19 | equal to that addition modification.
| ||||||
20 | The taxpayer is allowed to take the deduction under | ||||||
21 | this subparagraph
only once with respect to any one | ||||||
22 | piece of property. | ||||||
23 | This subparagraph (P) is exempt from the | ||||||
24 | provisions of Section 250; | ||||||
25 | (Q) The amount of (i) any interest income (net of | ||||||
26 | the deductions allocable thereto) taken into account |
| |||||||
| |||||||
1 | for the taxable year with respect to a transaction with | ||||||
2 | a taxpayer that is required to make an addition | ||||||
3 | modification with respect to such transaction under | ||||||
4 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
5 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
6 | the amount of such addition modification and
(ii) any | ||||||
7 | income from intangible property (net of the deductions | ||||||
8 | allocable thereto) taken into account for the taxable | ||||||
9 | year with respect to a transaction with a taxpayer that | ||||||
10 | is required to make an addition modification with | ||||||
11 | respect to such transaction under Section | ||||||
12 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
13 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
14 | addition modification. This subparagraph (Q) is exempt | ||||||
15 | from Section 250;
| ||||||
16 | (R) An amount equal to the interest income taken | ||||||
17 | into account for the taxable year (net of the | ||||||
18 | deductions allocable thereto) with respect to | ||||||
19 | transactions with (i) a foreign person who would be a | ||||||
20 | member of the taxpayer's unitary business group but for | ||||||
21 | the fact that the foreign person's business activity | ||||||
22 | outside the United States is 80% or more of that | ||||||
23 | person's total business activity and (ii) for taxable | ||||||
24 | years ending on or after December 31, 2008, to a person | ||||||
25 | who would be a member of the same unitary business | ||||||
26 | group but for the fact that the person is prohibited |
| |||||||
| |||||||
1 | under Section 1501(a)(27) from being included in the | ||||||
2 | unitary business group because he or she is ordinarily | ||||||
3 | required to apportion business income under different | ||||||
4 | subsections of Section 304, but not to exceed the | ||||||
5 | addition modification required to be made for the same | ||||||
6 | taxable year under Section 203(d)(2)(D-7) for interest | ||||||
7 | paid, accrued, or incurred, directly or indirectly, to | ||||||
8 | the same person. This subparagraph (R) is exempt from | ||||||
9 | Section 250; | ||||||
10 | (S) An amount equal to the income from intangible | ||||||
11 | property taken into account for the taxable year (net | ||||||
12 | of the deductions allocable thereto) with respect to | ||||||
13 | transactions with (i) a foreign person who would be a | ||||||
14 | member of the taxpayer's unitary business group but for | ||||||
15 | the fact that the foreign person's business activity | ||||||
16 | outside the United States is 80% or more of that | ||||||
17 | person's total business activity and (ii) for taxable | ||||||
18 | years ending on or after December 31, 2008, to a person | ||||||
19 | who would be a member of the same unitary business | ||||||
20 | group but for the fact that the person is prohibited | ||||||
21 | under Section 1501(a)(27) from being included in the | ||||||
22 | unitary business group because he or she is ordinarily | ||||||
23 | required to apportion business income under different | ||||||
24 | subsections of Section 304, but not to exceed the | ||||||
25 | addition modification required to be made for the same | ||||||
26 | taxable year under Section 203(d)(2)(D-8) for |
| |||||||
| |||||||
1 | intangible expenses and costs paid, accrued, or | ||||||
2 | incurred, directly or indirectly, to the same person. | ||||||
3 | This subparagraph (S) is exempt from Section 250; and
| ||||||
4 | (T) For taxable years ending on or after December | ||||||
5 | 31, 2011, in the case of a taxpayer who was required to | ||||||
6 | add back any insurance premiums under Section | ||||||
7 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
8 | that part of a reimbursement received from the | ||||||
9 | insurance company equal to the amount of the expense or | ||||||
10 | loss (including expenses incurred by the insurance | ||||||
11 | company) that would have been taken into account as a | ||||||
12 | deduction for federal income tax purposes if the | ||||||
13 | expense or loss had been uninsured. If a taxpayer makes | ||||||
14 | the election provided for by this subparagraph (T), the | ||||||
15 | insurer to which the premiums were paid must add back | ||||||
16 | to income the amount subtracted by the taxpayer | ||||||
17 | pursuant to this subparagraph (T). This subparagraph | ||||||
18 | (T) is exempt from the provisions of Section 250.
| ||||||
19 | (e) Gross income; adjusted gross income; taxable income. | ||||||
20 | (1) In general. Subject to the provisions of paragraph | ||||||
21 | (2) and
subsection (b)(3), for purposes of this Section and | ||||||
22 | Section 803(e), a
taxpayer's gross income, adjusted gross | ||||||
23 | income, or taxable income for
the taxable year shall mean | ||||||
24 | the amount of gross income, adjusted gross
income or | ||||||
25 | taxable income properly reportable for federal income tax
|
| |||||||
| |||||||
1 | purposes for the taxable year under the provisions of the | ||||||
2 | Internal
Revenue Code ; provided that, with respect to an | ||||||
3 | individual, for purposes of this Section, for taxable years | ||||||
4 | beginning after December 31, 2019, adjusted gross income | ||||||
5 | properly reportable for federal income tax purposes shall | ||||||
6 | be computed with the following adjustments: (i) the | ||||||
7 | provisions of Section 172(a)(1) of the Internal Revenue | ||||||
8 | Code shall apply by substituting "January 1, 2020" for | ||||||
9 | "January 1, 2021", (ii) the provisions of Section 172(a)(2) | ||||||
10 | of the Internal Revenue Code shall apply by substituting | ||||||
11 | "December 31, 2019" for "December 31, 2020", (iii) the | ||||||
12 | provisions of Section 172(b)(1)(D)(i) of the Internal | ||||||
13 | Revenue Code shall apply by substituting "January 1, 2020" | ||||||
14 | for "January 1, 2021", (iv) the provisions of Section | ||||||
15 | 172(b)(2)(C) shall apply by substituting "December 31, | ||||||
16 | 2019" for "December 31, 2020", and (v) the provisions of | ||||||
17 | Section 461(l)(1)(B) of the Internal Revenue Code shall | ||||||
18 | apply by substituting "December 31, 2019" for "December 31, | ||||||
19 | 2020" . Taxable income may be less than zero. However, for | ||||||
20 | taxable
years ending on or after December 31, 1986, net | ||||||
21 | operating loss
carryforwards from taxable years ending | ||||||
22 | prior to December 31, 1986, may not
exceed the sum of | ||||||
23 | federal taxable income for the taxable year before net
| ||||||
24 | operating loss deduction, plus the excess of addition | ||||||
25 | modifications over
subtraction modifications for the | ||||||
26 | taxable year. For taxable years ending
prior to December |
| |||||||
| |||||||
1 | 31, 1986, taxable income may never be an amount in excess
| ||||||
2 | of the net operating loss for the taxable year as defined | ||||||
3 | in subsections
(c) and (d) of Section 172 of the Internal | ||||||
4 | Revenue Code, provided that when
taxable income of a | ||||||
5 | corporation (other than a Subchapter S corporation),
| ||||||
6 | trust, or estate is less than zero and addition | ||||||
7 | modifications, other than
those provided by subparagraph | ||||||
8 | (E) of paragraph (2) of subsection (b) for
corporations or | ||||||
9 | subparagraph (E) of paragraph (2) of subsection (c) for
| ||||||
10 | trusts and estates, exceed subtraction modifications, an | ||||||
11 | addition
modification must be made under those | ||||||
12 | subparagraphs for any other taxable
year to which the | ||||||
13 | taxable income less than zero (net operating loss) is
| ||||||
14 | applied under Section 172 of the Internal Revenue Code or | ||||||
15 | under
subparagraph (E) of paragraph (2) of this subsection | ||||||
16 | (e) applied in
conjunction with Section 172 of the Internal | ||||||
17 | Revenue Code. | ||||||
18 | (2) Special rule. For purposes of paragraph (1) of this | ||||||
19 | subsection,
the taxable income properly reportable for | ||||||
20 | federal income tax purposes
shall mean: | ||||||
21 | (A) Certain life insurance companies. In the case | ||||||
22 | of a life
insurance company subject to the tax imposed | ||||||
23 | by Section 801 of the
Internal Revenue Code, life | ||||||
24 | insurance company taxable income, plus the
amount of | ||||||
25 | distribution from pre-1984 policyholder surplus | ||||||
26 | accounts as
calculated under Section 815a of the |
| |||||||
| |||||||
1 | Internal Revenue Code; | ||||||
2 | (B) Certain other insurance companies. In the case | ||||||
3 | of mutual
insurance companies subject to the tax | ||||||
4 | imposed by Section 831 of the
Internal Revenue Code, | ||||||
5 | insurance company taxable income; | ||||||
6 | (C) Regulated investment companies. In the case of | ||||||
7 | a regulated
investment company subject to the tax | ||||||
8 | imposed by Section 852 of the
Internal Revenue Code, | ||||||
9 | investment company taxable income; | ||||||
10 | (D) Real estate investment trusts. In the case of a | ||||||
11 | real estate
investment trust subject to the tax imposed | ||||||
12 | by Section 857 of the
Internal Revenue Code, real | ||||||
13 | estate investment trust taxable income; | ||||||
14 | (E) Consolidated corporations. In the case of a | ||||||
15 | corporation which
is a member of an affiliated group of | ||||||
16 | corporations filing a consolidated
income tax return | ||||||
17 | for the taxable year for federal income tax purposes,
| ||||||
18 | taxable income determined as if such corporation had | ||||||
19 | filed a separate
return for federal income tax purposes | ||||||
20 | for the taxable year and each
preceding taxable year | ||||||
21 | for which it was a member of an affiliated group.
For | ||||||
22 | purposes of this subparagraph, the taxpayer's separate | ||||||
23 | taxable
income shall be determined as if the election | ||||||
24 | provided by Section
243(b)(2) of the Internal Revenue | ||||||
25 | Code had been in effect for all such years; | ||||||
26 | (F) Cooperatives. In the case of a cooperative |
| |||||||
| |||||||
1 | corporation or
association, the taxable income of such | ||||||
2 | organization determined in
accordance with the | ||||||
3 | provisions of Section 1381 through 1388 of the
Internal | ||||||
4 | Revenue Code, but without regard to the prohibition | ||||||
5 | against offsetting losses from patronage activities | ||||||
6 | against income from nonpatronage activities; except | ||||||
7 | that a cooperative corporation or association may make | ||||||
8 | an election to follow its federal income tax treatment | ||||||
9 | of patronage losses and nonpatronage losses. In the | ||||||
10 | event such election is made, such losses shall be | ||||||
11 | computed and carried over in a manner consistent with | ||||||
12 | subsection (a) of Section 207 of this Act and | ||||||
13 | apportioned by the apportionment factor reported by | ||||||
14 | the cooperative on its Illinois income tax return filed | ||||||
15 | for the taxable year in which the losses are incurred. | ||||||
16 | The election shall be effective for all taxable years | ||||||
17 | with original returns due on or after the date of the | ||||||
18 | election. In addition, the cooperative may file an | ||||||
19 | amended return or returns, as allowed under this Act, | ||||||
20 | to provide that the election shall be effective for | ||||||
21 | losses incurred or carried forward for taxable years | ||||||
22 | occurring prior to the date of the election. Once made, | ||||||
23 | the election may only be revoked upon approval of the | ||||||
24 | Director. The Department shall adopt rules setting | ||||||
25 | forth requirements for documenting the elections and | ||||||
26 | any resulting Illinois net loss and the standards to be |
| |||||||
| |||||||
1 | used by the Director in evaluating requests to revoke | ||||||
2 | elections. Public Act 96-932 is declaratory of | ||||||
3 | existing law; | ||||||
4 | (G) Subchapter S corporations. In the case of: (i) | ||||||
5 | a Subchapter S
corporation for which there is in effect | ||||||
6 | an election for the taxable year
under Section 1362 of | ||||||
7 | the Internal Revenue Code, the taxable income of such
| ||||||
8 | corporation determined in accordance with Section | ||||||
9 | 1363(b) of the Internal
Revenue Code, except that | ||||||
10 | taxable income shall take into
account those items | ||||||
11 | which are required by Section 1363(b)(1) of the
| ||||||
12 | Internal Revenue Code to be separately stated; and (ii) | ||||||
13 | a Subchapter
S corporation for which there is in effect | ||||||
14 | a federal election to opt out of
the provisions of the | ||||||
15 | Subchapter S Revision Act of 1982 and have applied
| ||||||
16 | instead the prior federal Subchapter S rules as in | ||||||
17 | effect on July 1, 1982,
the taxable income of such | ||||||
18 | corporation determined in accordance with the
federal | ||||||
19 | Subchapter S rules as in effect on July 1, 1982; and | ||||||
20 | (H) Partnerships. In the case of a partnership, | ||||||
21 | taxable income
determined in accordance with Section | ||||||
22 | 703 of the Internal Revenue Code,
except that taxable | ||||||
23 | income shall take into account those items which are
| ||||||
24 | required by Section 703(a)(1) to be separately stated | ||||||
25 | but which would be
taken into account by an individual | ||||||
26 | in calculating his taxable income. |
| |||||||
| |||||||
1 | (3) Recapture of business expenses on disposition of | ||||||
2 | asset or business. Notwithstanding any other law to the | ||||||
3 | contrary, if in prior years income from an asset or | ||||||
4 | business has been classified as business income and in a | ||||||
5 | later year is demonstrated to be non-business income, then | ||||||
6 | all expenses, without limitation, deducted in such later | ||||||
7 | year and in the 2 immediately preceding taxable years | ||||||
8 | related to that asset or business that generated the | ||||||
9 | non-business income shall be added back and recaptured as | ||||||
10 | business income in the year of the disposition of the asset | ||||||
11 | or business. Such amount shall be apportioned to Illinois | ||||||
12 | using the greater of the apportionment fraction computed | ||||||
13 | for the business under Section 304 of this Act for the | ||||||
14 | taxable year or the average of the apportionment fractions | ||||||
15 | computed for the business under Section 304 of this Act for | ||||||
16 | the taxable year and for the 2 immediately preceding | ||||||
17 | taxable years.
| ||||||
18 | (f) Valuation limitation amount. | ||||||
19 | (1) In general. The valuation limitation amount | ||||||
20 | referred to in
subsections (a)(2)(G), (c)(2)(I) and | ||||||
21 | (d)(2)(E) is an amount equal to: | ||||||
22 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
23 | amounts (to the
extent consisting of gain reportable | ||||||
24 | under the provisions of Section
1245 or 1250 of the | ||||||
25 | Internal Revenue Code) for all property in respect
of |
| |||||||
| |||||||
1 | which such gain was reported for the taxable year; plus | ||||||
2 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
3 | 1969 appreciation
amounts (to the extent consisting of | ||||||
4 | capital gain) for all property in
respect of which such | ||||||
5 | gain was reported for federal income tax purposes
for | ||||||
6 | the taxable year, or (ii) the net capital gain for the | ||||||
7 | taxable year,
reduced in either case by any amount of | ||||||
8 | such gain included in the amount
determined under | ||||||
9 | subsection (a)(2)(F) or (c)(2)(H). | ||||||
10 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
11 | (A) If the fair market value of property referred | ||||||
12 | to in paragraph
(1) was readily ascertainable on August | ||||||
13 | 1, 1969, the pre-August 1, 1969
appreciation amount for | ||||||
14 | such property is the lesser of (i) the excess of
such | ||||||
15 | fair market value over the taxpayer's basis (for | ||||||
16 | determining gain)
for such property on that date | ||||||
17 | (determined under the Internal Revenue
Code as in | ||||||
18 | effect on that date), or (ii) the total gain realized | ||||||
19 | and
reportable for federal income tax purposes in | ||||||
20 | respect of the sale,
exchange or other disposition of | ||||||
21 | such property. | ||||||
22 | (B) If the fair market value of property referred | ||||||
23 | to in paragraph
(1) was not readily ascertainable on | ||||||
24 | August 1, 1969, the pre-August 1,
1969 appreciation | ||||||
25 | amount for such property is that amount which bears
the | ||||||
26 | same ratio to the total gain reported in respect of the |
| |||||||
| |||||||
1 | property for
federal income tax purposes for the | ||||||
2 | taxable year, as the number of full
calendar months in | ||||||
3 | that part of the taxpayer's holding period for the
| ||||||
4 | property ending July 31, 1969 bears to the number of | ||||||
5 | full calendar
months in the taxpayer's entire holding | ||||||
6 | period for the
property. | ||||||
7 | (C) The Department shall prescribe such | ||||||
8 | regulations as may be
necessary to carry out the | ||||||
9 | purposes of this paragraph.
| ||||||
10 | (g) Double deductions. Unless specifically provided | ||||||
11 | otherwise, nothing
in this Section shall permit the same item | ||||||
12 | to be deducted more than once.
| ||||||
13 | (h) Legislative intention. Except as expressly provided by | ||||||
14 | this
Section there shall be no modifications or limitations on | ||||||
15 | the amounts
of income, gain, loss or deduction taken into | ||||||
16 | account in determining
gross income, adjusted gross income or | ||||||
17 | taxable income for federal income
tax purposes for the taxable | ||||||
18 | year, or in the amount of such items
entering into the | ||||||
19 | computation of base income and net income under this
Act for | ||||||
20 | such taxable year, whether in respect of property values as of
| ||||||
21 | August 1, 1969 or otherwise. | ||||||
22 | (Source: P.A. 100-22, eff. 7-6-17; 100-905, eff. 8-17-18; | ||||||
23 | 101-9, eff. 6-5-19; 101-81, eff. 7-12-19; revised 9-20-19.)
|
| |||||||
| |||||||
1 | Section 20. The Service Use Tax Act is amended by changing | ||||||
2 | Section 3-10 as follows:
| ||||||
3 | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
| ||||||
4 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
5 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
6 | the selling
price of tangible personal property transferred as | ||||||
7 | an incident to the sale
of service, but, for the purpose of | ||||||
8 | computing this tax, in no event shall
the selling price be less | ||||||
9 | than the cost price of the property to the
serviceman.
| ||||||
10 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
11 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
12 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
13 | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||||||
14 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
15 | tax imposed
by this Act applies to (i) 70% of the selling price | ||||||
16 | of property transferred
as an incident to the sale of service | ||||||
17 | on or after January 1, 1990,
and before July 1, 2003, (ii) 80% | ||||||
18 | of the selling price of
property transferred as an incident to | ||||||
19 | the sale of service on or after July
1, 2003 and on or before | ||||||
20 | July 1, 2017, and (iii)
100% of the selling price thereafter.
| ||||||
21 | If, at any time, however, the tax under this Act on sales of | ||||||
22 | gasohol, as
defined in
the Use Tax Act, is imposed at the rate | ||||||
23 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
24 | the proceeds of sales of gasohol
made during that time.
| ||||||
25 | With respect to majority blended ethanol fuel, as defined |
| |||||||
| |||||||
1 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
2 | to the selling price of property transferred
as an incident to | ||||||
3 | the sale of service on or after July 1, 2003 and on or before
| ||||||
4 | December 31, 2023 but applies to 100% of the selling price | ||||||
5 | thereafter.
| ||||||
6 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
7 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
8 | tax imposed by this Act
applies to (i) 80% of the selling price | ||||||
9 | of property transferred as an incident
to the sale of service | ||||||
10 | on or after July 1, 2003 and on or before December 31, 2018
and | ||||||
11 | (ii) 100% of the proceeds of the selling price
thereafter.
If, | ||||||
12 | at any time, however, the tax under this Act on sales of | ||||||
13 | biodiesel blends,
as
defined in the Use Tax Act, with no less | ||||||
14 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
15 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
16 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
17 | and no more than 10% biodiesel
made
during that time.
| ||||||
18 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
19 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
20 | more than 10% but no more than 99% biodiesel, the tax imposed | ||||||
21 | by this Act
does not apply to the proceeds of the selling price | ||||||
22 | of property transferred
as an incident to the sale of service | ||||||
23 | on or after July 1, 2003 and on or before
December 31, 2023 but | ||||||
24 | applies to 100% of the selling price thereafter.
| ||||||
25 | At the election of any registered serviceman made for each | ||||||
26 | fiscal year,
sales of service in which the aggregate annual |
| |||||||
| |||||||
1 | cost price of tangible
personal property transferred as an | ||||||
2 | incident to the sales of service is
less than 35%, or 75% in | ||||||
3 | the case of servicemen transferring prescription
drugs or | ||||||
4 | servicemen engaged in graphic arts production, of the aggregate
| ||||||
5 | annual total gross receipts from all sales of service, the tax | ||||||
6 | imposed by
this Act shall be based on the serviceman's cost | ||||||
7 | price of the tangible
personal property transferred as an | ||||||
8 | incident to the sale of those services.
| ||||||
9 | The tax shall be imposed at the rate of 1% on food prepared | ||||||
10 | for
immediate consumption and transferred incident to a sale of | ||||||
11 | service subject
to this Act or the Service Occupation Tax Act | ||||||
12 | by an entity licensed under
the Hospital Licensing Act, the | ||||||
13 | Nursing Home Care Act, the Assisted Living and Shared Housing | ||||||
14 | Act, the ID/DD Community Care Act, the MC/DD Act, the | ||||||
15 | Specialized Mental Health Rehabilitation Act of 2013, or the
| ||||||
16 | Child Care
Act of 1969 , or an entity that holds a permit issued | ||||||
17 | pursuant to the Life Care Facilities Act . The tax shall
also be | ||||||
18 | imposed at the rate of 1% on food for human consumption that is | ||||||
19 | to be
consumed off the premises where it is sold (other than | ||||||
20 | alcoholic beverages, food consisting of or infused with adult | ||||||
21 | use cannabis,
soft drinks, and food that has been prepared for | ||||||
22 | immediate consumption and is
not otherwise included in this | ||||||
23 | paragraph) and prescription and nonprescription
medicines, | ||||||
24 | drugs, medical appliances, products classified as Class III | ||||||
25 | medical devices by the United States Food and Drug | ||||||
26 | Administration that are used for cancer treatment pursuant to a |
| |||||||
| |||||||
1 | prescription, as well as any accessories and components related | ||||||
2 | to those devices, modifications to a motor vehicle for the
| ||||||
3 | purpose of rendering it usable by a person with a disability, | ||||||
4 | and insulin, urine testing
materials,
syringes, and needles | ||||||
5 | used by diabetics, for
human use. For the purposes of this | ||||||
6 | Section, until September 1, 2009: the term "soft drinks" means | ||||||
7 | any
complete, finished, ready-to-use, non-alcoholic drink, | ||||||
8 | whether carbonated or
not, including but not limited to soda | ||||||
9 | water, cola, fruit juice, vegetable
juice, carbonated water, | ||||||
10 | and all other preparations commonly known as soft
drinks of | ||||||
11 | whatever kind or description that are contained in any closed | ||||||
12 | or
sealed bottle, can, carton, or container, regardless of | ||||||
13 | size; but "soft drinks"
does not include coffee, tea, | ||||||
14 | non-carbonated water, infant formula, milk or
milk products as | ||||||
15 | defined in the Grade A Pasteurized Milk and Milk Products Act,
| ||||||
16 | or drinks containing 50% or more natural fruit or vegetable | ||||||
17 | juice.
| ||||||
18 | Notwithstanding any other provisions of this
Act, | ||||||
19 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
20 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
21 | drinks" do not include beverages that contain milk or milk | ||||||
22 | products, soy, rice or similar milk substitutes, or greater | ||||||
23 | than 50% of vegetable or fruit juice by volume. | ||||||
24 | Until August 1, 2009, and notwithstanding any other | ||||||
25 | provisions of this Act, "food for human
consumption that is to | ||||||
26 | be consumed off the premises where it is sold" includes
all |
| |||||||
| |||||||
1 | food sold through a vending machine, except soft drinks and | ||||||
2 | food products
that are dispensed hot from a vending machine, | ||||||
3 | regardless of the location of
the vending machine. Beginning | ||||||
4 | August 1, 2009, and notwithstanding any other provisions of | ||||||
5 | this Act, "food for human consumption that is to be consumed | ||||||
6 | off the premises where it is sold" includes all food sold | ||||||
7 | through a vending machine, except soft drinks, candy, and food | ||||||
8 | products that are dispensed hot from a vending machine, | ||||||
9 | regardless of the location of the vending machine.
| ||||||
10 | Notwithstanding any other provisions of this
Act, | ||||||
11 | beginning September 1, 2009, "food for human consumption that | ||||||
12 | is to be consumed off the premises where
it is sold" does not | ||||||
13 | include candy. For purposes of this Section, "candy" means a | ||||||
14 | preparation of sugar, honey, or other natural or artificial | ||||||
15 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
16 | ingredients or flavorings in the form of bars, drops, or | ||||||
17 | pieces. "Candy" does not include any preparation that contains | ||||||
18 | flour or requires refrigeration. | ||||||
19 | Notwithstanding any other provisions of this
Act, | ||||||
20 | beginning September 1, 2009, "nonprescription medicines and | ||||||
21 | drugs" does not include grooming and hygiene products. For | ||||||
22 | purposes of this Section, "grooming and hygiene products" | ||||||
23 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
24 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
25 | lotions and screens, unless those products are available by | ||||||
26 | prescription only, regardless of whether the products meet the |
| |||||||
| |||||||
1 | definition of "over-the-counter-drugs". For the purposes of | ||||||
2 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
3 | use that contains a label that identifies the product as a drug | ||||||
4 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
5 | label includes: | ||||||
6 | (A) A "Drug Facts" panel; or | ||||||
7 | (B) A statement of the "active ingredient(s)" with a | ||||||
8 | list of those ingredients contained in the compound, | ||||||
9 | substance or preparation. | ||||||
10 | Beginning on January 1, 2014 (the effective date of Public | ||||||
11 | Act 98-122), "prescription and nonprescription medicines and | ||||||
12 | drugs" includes medical cannabis purchased from a registered | ||||||
13 | dispensing organization under the Compassionate Use of Medical | ||||||
14 | Cannabis Program Act. | ||||||
15 | As used in this Section, "adult use cannabis" means | ||||||
16 | cannabis subject to tax under the Cannabis Cultivation | ||||||
17 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and | ||||||
18 | does not include cannabis subject to tax under the | ||||||
19 | Compassionate Use of Medical Cannabis Program Act. | ||||||
20 | If the property that is acquired from a serviceman is | ||||||
21 | acquired outside
Illinois and used outside Illinois before | ||||||
22 | being brought to Illinois for use
here and is taxable under | ||||||
23 | this Act, the "selling price" on which the tax
is computed | ||||||
24 | shall be reduced by an amount that represents a reasonable
| ||||||
25 | allowance for depreciation for the period of prior out-of-state | ||||||
26 | use.
|
| |||||||
| |||||||
1 | (Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19; | ||||||
2 | 101-593, eff. 12-4-19.)
| ||||||
3 | Section 25. The Service Occupation Tax Act is amended by | ||||||
4 | changing Section 3-10 as follows:
| ||||||
5 | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
| ||||||
6 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
7 | Section,
the tax imposed by this Act is at the rate of 6.25% of | ||||||
8 | the "selling price",
as defined in Section 2 of the Service Use | ||||||
9 | Tax Act, of the tangible
personal property. For the purpose of | ||||||
10 | computing this tax, in no event
shall the "selling price" be | ||||||
11 | less than the cost price to the serviceman of
the tangible | ||||||
12 | personal property transferred. The selling price of each item
| ||||||
13 | of tangible personal property transferred as an incident of a | ||||||
14 | sale of
service may be shown as a distinct and separate item on | ||||||
15 | the serviceman's
billing to the service customer. If the | ||||||
16 | selling price is not so shown, the
selling price of the | ||||||
17 | tangible personal property is deemed to be 50% of the
| ||||||
18 | serviceman's entire billing to the service customer. When, | ||||||
19 | however, a
serviceman contracts to design, develop, and produce | ||||||
20 | special order machinery or
equipment, the tax imposed by this | ||||||
21 | Act shall be based on the serviceman's
cost price of the | ||||||
22 | tangible personal property transferred incident to the
| ||||||
23 | completion of the contract.
| ||||||
24 | Beginning on July 1, 2000 and through December 31, 2000, |
| |||||||
| |||||||
1 | with respect to
motor fuel, as defined in Section 1.1 of the | ||||||
2 | Motor Fuel Tax
Law, and gasohol, as defined in Section 3-40 of | ||||||
3 | the Use Tax Act, the tax is
imposed at
the rate of 1.25%.
| ||||||
4 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
5 | tax imposed
by this Act shall apply to (i) 70% of the cost | ||||||
6 | price of property
transferred as
an incident to the sale of | ||||||
7 | service on or after January 1, 1990, and before
July 1, 2003, | ||||||
8 | (ii) 80% of the selling price of property transferred as an
| ||||||
9 | incident to the sale of service on or after July
1, 2003 and on | ||||||
10 | or before July 1, 2017, and (iii) 100%
of
the cost price
| ||||||
11 | thereafter.
If, at any time, however, the tax under this Act on | ||||||
12 | sales of gasohol, as
defined in
the Use Tax Act, is imposed at | ||||||
13 | the rate of 1.25%, then the
tax imposed by this Act applies to | ||||||
14 | 100% of the proceeds of sales of gasohol
made during that time.
| ||||||
15 | With respect to majority blended ethanol fuel, as defined | ||||||
16 | in the Use Tax Act,
the
tax
imposed by this Act does not apply | ||||||
17 | to the selling price of property transferred
as an incident to | ||||||
18 | the sale of service on or after July 1, 2003 and on or before
| ||||||
19 | December 31, 2023 but applies to 100% of the selling price | ||||||
20 | thereafter.
| ||||||
21 | With respect to biodiesel blends, as defined in the Use Tax | ||||||
22 | Act, with no less
than 1% and no
more than 10% biodiesel, the | ||||||
23 | tax imposed by this Act
applies to (i) 80% of the selling price | ||||||
24 | of property transferred as an incident
to the sale of service | ||||||
25 | on or after July 1, 2003 and on or before December 31, 2018
and | ||||||
26 | (ii) 100% of the proceeds of the selling price
thereafter.
If, |
| |||||||
| |||||||
1 | at any time, however, the tax under this Act on sales of | ||||||
2 | biodiesel blends,
as
defined in the Use Tax Act, with no less | ||||||
3 | than 1% and no more than 10% biodiesel
is imposed at the rate | ||||||
4 | of 1.25%, then the
tax imposed by this Act applies to 100% of | ||||||
5 | the proceeds of sales of biodiesel
blends with no less than 1% | ||||||
6 | and no more than 10% biodiesel
made
during that time.
| ||||||
7 | With respect to 100% biodiesel, as defined in the Use Tax | ||||||
8 | Act, and biodiesel
blends, as defined in the Use Tax Act, with
| ||||||
9 | more than 10% but no more than 99% biodiesel material, the tax | ||||||
10 | imposed by this
Act
does not apply to the proceeds of the | ||||||
11 | selling price of property transferred
as an incident to the | ||||||
12 | sale of service on or after July 1, 2003 and on or before
| ||||||
13 | December 31, 2023 but applies to 100% of the selling price | ||||||
14 | thereafter.
| ||||||
15 | At the election of any registered serviceman made for each | ||||||
16 | fiscal year,
sales of service in which the aggregate annual | ||||||
17 | cost price of tangible
personal property transferred as an | ||||||
18 | incident to the sales of service is
less than 35%, or 75% in | ||||||
19 | the case of servicemen transferring prescription
drugs or | ||||||
20 | servicemen engaged in graphic arts production, of the aggregate
| ||||||
21 | annual total gross receipts from all sales of service, the tax | ||||||
22 | imposed by
this Act shall be based on the serviceman's cost | ||||||
23 | price of the tangible
personal property transferred incident to | ||||||
24 | the sale of those services.
| ||||||
25 | The tax shall be imposed at the rate of 1% on food prepared | ||||||
26 | for
immediate consumption and transferred incident to a sale of |
| |||||||
| |||||||
1 | service subject
to this Act or the Service Occupation Tax Act | ||||||
2 | by an entity licensed under
the Hospital Licensing Act, the | ||||||
3 | Nursing Home Care Act, the Assisted Living and Shared Housing | ||||||
4 | Act, the ID/DD Community Care Act, the MC/DD Act, the | ||||||
5 | Specialized Mental Health Rehabilitation Act of 2013, or the
| ||||||
6 | Child Care Act of 1969 , or an entity that holds a permit issued | ||||||
7 | pursuant to the Life Care Facilities Act . The tax shall
also be | ||||||
8 | imposed at the rate of 1% on food for human consumption that is
| ||||||
9 | to be consumed off the
premises where it is sold (other than | ||||||
10 | alcoholic beverages, food consisting of or infused with adult | ||||||
11 | use cannabis, soft drinks, and
food that has been prepared for | ||||||
12 | immediate consumption and is not
otherwise included in this | ||||||
13 | paragraph) and prescription and
nonprescription medicines, | ||||||
14 | drugs, medical appliances, products classified as Class III | ||||||
15 | medical devices by the United States Food and Drug | ||||||
16 | Administration that are used for cancer treatment pursuant to a | ||||||
17 | prescription, as well as any accessories and components related | ||||||
18 | to those devices, modifications to a motor
vehicle for the | ||||||
19 | purpose of rendering it usable by a person with a disability, | ||||||
20 | and
insulin, urine testing materials, syringes, and needles | ||||||
21 | used by diabetics, for
human use. For the purposes of this | ||||||
22 | Section, until September 1, 2009: the term "soft drinks" means | ||||||
23 | any
complete, finished, ready-to-use, non-alcoholic drink, | ||||||
24 | whether carbonated or
not, including but not limited to soda | ||||||
25 | water, cola, fruit juice, vegetable
juice, carbonated water, | ||||||
26 | and all other preparations commonly known as soft
drinks of |
| |||||||
| |||||||
1 | whatever kind or description that are contained in any closed | ||||||
2 | or
sealed can, carton, or container, regardless of size; but | ||||||
3 | "soft drinks" does not
include coffee, tea, non-carbonated | ||||||
4 | water, infant formula, milk or milk
products as defined in the | ||||||
5 | Grade A Pasteurized Milk and Milk Products Act, or
drinks | ||||||
6 | containing 50% or more natural fruit or vegetable juice.
| ||||||
7 | Notwithstanding any other provisions of this
Act, | ||||||
8 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
9 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
10 | drinks" do not include beverages that contain milk or milk | ||||||
11 | products, soy, rice or similar milk substitutes, or greater | ||||||
12 | than 50% of vegetable or fruit juice by volume. | ||||||
13 | Until August 1, 2009, and notwithstanding any other | ||||||
14 | provisions of this Act, "food for human consumption
that is to | ||||||
15 | be consumed off the premises where it is sold" includes all | ||||||
16 | food
sold through a vending machine, except soft drinks and | ||||||
17 | food products that are
dispensed hot from a vending machine, | ||||||
18 | regardless of the location of the vending
machine. Beginning | ||||||
19 | August 1, 2009, and notwithstanding any other provisions of | ||||||
20 | this Act, "food for human consumption that is to be consumed | ||||||
21 | off the premises where it is sold" includes all food sold | ||||||
22 | through a vending machine, except soft drinks, candy, and food | ||||||
23 | products that are dispensed hot from a vending machine, | ||||||
24 | regardless of the location of the vending machine.
| ||||||
25 | Notwithstanding any other provisions of this
Act, | ||||||
26 | beginning September 1, 2009, "food for human consumption that |
| |||||||
| |||||||
1 | is to be consumed off the premises where
it is sold" does not | ||||||
2 | include candy. For purposes of this Section, "candy" means a | ||||||
3 | preparation of sugar, honey, or other natural or artificial | ||||||
4 | sweeteners in combination with chocolate, fruits, nuts or other | ||||||
5 | ingredients or flavorings in the form of bars, drops, or | ||||||
6 | pieces. "Candy" does not include any preparation that contains | ||||||
7 | flour or requires refrigeration. | ||||||
8 | Notwithstanding any other provisions of this
Act, | ||||||
9 | beginning September 1, 2009, "nonprescription medicines and | ||||||
10 | drugs" does not include grooming and hygiene products. For | ||||||
11 | purposes of this Section, "grooming and hygiene products" | ||||||
12 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
13 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
14 | lotions and screens, unless those products are available by | ||||||
15 | prescription only, regardless of whether the products meet the | ||||||
16 | definition of "over-the-counter-drugs". For the purposes of | ||||||
17 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
18 | use that contains a label that identifies the product as a drug | ||||||
19 | as required by 21 C.F.R. § 201.66. The "over-the-counter-drug" | ||||||
20 | label includes: | ||||||
21 | (A) A "Drug Facts" panel; or | ||||||
22 | (B) A statement of the "active ingredient(s)" with a | ||||||
23 | list of those ingredients contained in the compound, | ||||||
24 | substance or preparation. | ||||||
25 | Beginning on January 1, 2014 (the effective date of Public | ||||||
26 | Act 98-122), "prescription and nonprescription medicines and |
| |||||||
| |||||||
1 | drugs" includes medical cannabis purchased from a registered | ||||||
2 | dispensing organization under the Compassionate Use of Medical | ||||||
3 | Cannabis Program Act. | ||||||
4 | As used in this Section, "adult use cannabis" means | ||||||
5 | cannabis subject to tax under the Cannabis Cultivation | ||||||
6 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law and | ||||||
7 | does not include cannabis subject to tax under the | ||||||
8 | Compassionate Use of Medical Cannabis Program Act. | ||||||
9 | (Source: P.A. 100-22, eff. 7-6-17; 101-363, eff. 8-9-19; | ||||||
10 | 101-593, eff. 12-4-19.)
| ||||||
11 | Section 30. The Retailers' Occupation Tax Act is amended by | ||||||
12 | changing Sections 1, 2-5, and 3 as follows:
| ||||||
13 | (35 ILCS 120/1) (from Ch. 120, par. 440)
| ||||||
14 | Sec. 1. Definitions. "Sale at retail" means any transfer of | ||||||
15 | the
ownership of or title to
tangible personal property to a | ||||||
16 | purchaser, for the purpose of use or
consumption, and not for | ||||||
17 | the purpose of resale in any form as tangible
personal property | ||||||
18 | to the extent not first subjected to a use for which it
was | ||||||
19 | purchased, for a valuable consideration: Provided that the | ||||||
20 | property
purchased is deemed to be purchased for the purpose of | ||||||
21 | resale, despite
first being used, to the extent to which it is | ||||||
22 | resold as an ingredient of
an intentionally produced product or | ||||||
23 | byproduct of manufacturing. For this
purpose, slag produced as | ||||||
24 | an incident to manufacturing pig iron or steel
and sold is |
| |||||||
| |||||||
1 | considered to be an intentionally produced byproduct of
| ||||||
2 | manufacturing. Transactions whereby the possession of the | ||||||
3 | property is
transferred but the seller retains the title as | ||||||
4 | security for payment of the
selling price shall be deemed to be | ||||||
5 | sales.
| ||||||
6 | "Sale at retail" shall be construed to include any transfer | ||||||
7 | of the
ownership of or title to tangible personal property to a | ||||||
8 | purchaser, for use
or consumption by any other person to whom | ||||||
9 | such purchaser may transfer the
tangible personal property | ||||||
10 | without a valuable consideration, and to include
any transfer, | ||||||
11 | whether made for or without a valuable consideration, for
| ||||||
12 | resale in any form as tangible personal property unless made in | ||||||
13 | compliance
with Section 2c of this Act.
| ||||||
14 | Sales of tangible personal property, which property, to the | ||||||
15 | extent not
first subjected to a use for which it was purchased, | ||||||
16 | as an ingredient or
constituent, goes into and forms a part of | ||||||
17 | tangible personal property
subsequently the subject of a "Sale | ||||||
18 | at retail", are not sales at retail as
defined in this Act: | ||||||
19 | Provided that the property purchased is deemed to be
purchased | ||||||
20 | for the purpose of resale, despite first being used, to the
| ||||||
21 | extent to which it is resold as an ingredient of an | ||||||
22 | intentionally produced
product or byproduct of manufacturing.
| ||||||
23 | "Sale at retail" shall be construed to include any Illinois | ||||||
24 | florist's
sales transaction in which the purchase order is | ||||||
25 | received in Illinois by a
florist and the sale is for use or | ||||||
26 | consumption, but the Illinois florist
has a florist in another |
| |||||||
| |||||||
1 | state deliver the property to the purchaser or the
purchaser's | ||||||
2 | donee in such other state.
| ||||||
3 | Nonreusable tangible personal property that is used by | ||||||
4 | persons engaged in
the business of operating a restaurant, | ||||||
5 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
6 | transferred to customers in the ordinary course of business
as | ||||||
7 | part of the sale of food or beverages and is used to deliver, | ||||||
8 | package, or
consume food or beverages, regardless of where | ||||||
9 | consumption of the food or
beverages occurs. Examples of those | ||||||
10 | items include, but are not limited to
nonreusable, paper and | ||||||
11 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
12 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
13 | and
wrapping or packaging
materials that are transferred to | ||||||
14 | customers as part of the sale of food or
beverages in the | ||||||
15 | ordinary course of business.
| ||||||
16 | The purchase, employment and transfer of such tangible | ||||||
17 | personal property
as newsprint and ink for the primary purpose | ||||||
18 | of conveying news (with or
without other information) is not a | ||||||
19 | purchase, use or sale of tangible
personal property.
| ||||||
20 | A person whose activities are organized and conducted | ||||||
21 | primarily as a
not-for-profit service enterprise, and who | ||||||
22 | engages in selling tangible
personal property at retail | ||||||
23 | (whether to the public or merely to members and
their guests) | ||||||
24 | is engaged in the business of selling tangible personal
| ||||||
25 | property at retail with respect to such transactions, excepting | ||||||
26 | only a
person organized and operated exclusively for |
| |||||||
| |||||||
1 | charitable, religious or
educational purposes either (1), to | ||||||
2 | the extent of sales by such person to
its members, students, | ||||||
3 | patients or inmates of tangible personal property to
be used | ||||||
4 | primarily for the purposes of such person, or (2), to the | ||||||
5 | extent of
sales by such person of tangible personal property | ||||||
6 | which is not sold or
offered for sale by persons organized for | ||||||
7 | profit. The selling of school
books and school supplies by | ||||||
8 | schools at retail to students is not
"primarily for the | ||||||
9 | purposes of" the school which does such selling. The
provisions | ||||||
10 | of this paragraph shall not apply to nor subject to taxation
| ||||||
11 | occasional dinners, socials or similar activities of a person | ||||||
12 | organized and
operated exclusively for charitable, religious | ||||||
13 | or educational purposes,
whether or not such activities are | ||||||
14 | open to the public.
| ||||||
15 | A person who is the recipient of a grant or contract under | ||||||
16 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
17 | serves meals to
participants in the federal Nutrition Program | ||||||
18 | for the Elderly in return for
contributions established in | ||||||
19 | amount by the individual participant pursuant
to a schedule of | ||||||
20 | suggested fees as provided for in the federal Act is not
| ||||||
21 | engaged in the business of selling tangible personal property | ||||||
22 | at retail
with respect to such transactions.
| ||||||
23 | "Purchaser" means anyone who, through a sale at retail, | ||||||
24 | acquires the
ownership of or title to tangible personal | ||||||
25 | property for a valuable
consideration.
| ||||||
26 | "Reseller of motor fuel" means any person engaged in the |
| |||||||
| |||||||
1 | business of selling
or delivering or transferring title of | ||||||
2 | motor fuel to another person
other than for use or consumption.
| ||||||
3 | No person shall act as a reseller of motor fuel within this | ||||||
4 | State without
first being registered as a reseller pursuant to | ||||||
5 | Section 2c or a retailer
pursuant to Section 2a.
| ||||||
6 | "Selling price" or the "amount of sale" means the | ||||||
7 | consideration for a
sale valued in money whether received in | ||||||
8 | money or otherwise, including
cash, credits, property, other | ||||||
9 | than as hereinafter provided, and services,
but, prior to | ||||||
10 | January 1, 2020, not including the value of or credit given for | ||||||
11 | traded-in tangible
personal property where the item that is | ||||||
12 | traded-in is of like kind and
character as that which is being | ||||||
13 | sold; beginning January 1, 2020, "selling price" includes the | ||||||
14 | portion of the value of or credit given for traded-in motor | ||||||
15 | vehicles of the First Division as defined in Section 1-146 of | ||||||
16 | the Illinois Vehicle Code of like kind and character as that | ||||||
17 | which is being sold that exceeds $10,000. "Selling price" shall | ||||||
18 | be determined without any
deduction on account of the cost of | ||||||
19 | the property sold, the cost of
materials used, labor or service | ||||||
20 | cost or any other expense whatsoever, but
does not include | ||||||
21 | charges that are added to prices by sellers on account of
the | ||||||
22 | seller's tax liability under this Act, or on account of the | ||||||
23 | seller's
duty to collect, from the purchaser, the tax that is | ||||||
24 | imposed by the Use Tax
Act, or, except as otherwise provided | ||||||
25 | with respect to any cigarette tax imposed by a home rule unit, | ||||||
26 | on account of the seller's tax liability under any local |
| |||||||
| |||||||
1 | occupation tax administered by the Department, or, except as | ||||||
2 | otherwise provided with respect to any cigarette tax imposed by | ||||||
3 | a home rule unit on account of the seller's duty to collect, | ||||||
4 | from the purchasers, the tax that is imposed under any local | ||||||
5 | use tax administered by the Department.
Effective December 1, | ||||||
6 | 1985, "selling price" shall include charges that
are added to | ||||||
7 | prices by sellers on account of the seller's
tax liability | ||||||
8 | under the Cigarette Tax Act, on account of the sellers'
duty to | ||||||
9 | collect, from the purchaser, the tax imposed under the | ||||||
10 | Cigarette
Use Tax Act, and on account of the seller's duty to | ||||||
11 | collect, from the
purchaser, any cigarette tax imposed by a | ||||||
12 | home rule unit.
| ||||||
13 | Notwithstanding any law to the contrary, for any motor | ||||||
14 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
15 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
16 | the vehicle for a defined period that is longer than one year | ||||||
17 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
18 | a self-contained motor vehicle designed or permanently | ||||||
19 | converted to provide living quarters for recreational, | ||||||
20 | camping, or travel use, with direct walk through access to the | ||||||
21 | living quarters from the driver's seat; (B) is of the van | ||||||
22 | configuration designed for the transportation of not less than | ||||||
23 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
24 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
25 | of the first division, "selling price" or "amount of sale" | ||||||
26 | means the consideration received by the lessor pursuant to the |
| |||||||
| |||||||
1 | lease contract, including amounts due at lease signing and all | ||||||
2 | monthly or other regular payments charged over the term of the | ||||||
3 | lease. Also included in the selling price is any amount | ||||||
4 | received by the lessor from the lessee for the leased vehicle | ||||||
5 | that is not calculated at the time the lease is executed, | ||||||
6 | including, but not limited to, excess mileage charges and | ||||||
7 | charges for excess wear and tear. For sales that occur in | ||||||
8 | Illinois, with respect to any amount received by the lessor | ||||||
9 | from the lessee for the leased vehicle that is not calculated | ||||||
10 | at the time the lease is executed, the lessor who purchased the | ||||||
11 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
12 | on those amounts, and the retailer who makes the retail sale of | ||||||
13 | the motor vehicle to the lessor is not required to collect the | ||||||
14 | tax imposed by the Use Tax Act or to pay the tax imposed by this | ||||||
15 | Act on those amounts. However, the lessor who purchased the | ||||||
16 | motor vehicle assumes the liability for reporting and paying | ||||||
17 | the tax on those amounts directly to the Department in the same | ||||||
18 | form (Illinois Retailers' Occupation Tax, and local retailers' | ||||||
19 | occupation taxes, if applicable) in which the retailer would | ||||||
20 | have reported and paid such tax if the retailer had accounted | ||||||
21 | for the tax to the Department. For amounts received by the | ||||||
22 | lessor from the lessee that are not calculated at the time the | ||||||
23 | lease is executed, the lessor must file the return and pay the | ||||||
24 | tax to the Department by the due date otherwise required by | ||||||
25 | this Act for returns other than transaction returns. If the | ||||||
26 | retailer is entitled under this Act to a discount for |
| |||||||
| |||||||
1 | collecting and remitting the tax imposed under this Act to the | ||||||
2 | Department with respect to the sale of the motor vehicle to the | ||||||
3 | lessor, then the right to the discount provided in this Act | ||||||
4 | shall be transferred to the lessor with respect to the tax paid | ||||||
5 | by the lessor for any amount received by the lessor from the | ||||||
6 | lessee for the leased vehicle that is not calculated at the | ||||||
7 | time the lease is executed; provided that the discount is only | ||||||
8 | allowed if the return is timely filed and for amounts timely | ||||||
9 | paid. The "selling price" of a motor vehicle that is sold on or | ||||||
10 | after January 1, 2015 for the purpose of leasing for a defined | ||||||
11 | period of longer than one year shall not be reduced by the | ||||||
12 | value of or credit given for traded-in tangible personal | ||||||
13 | property owned by the lessor, nor shall it be reduced by the | ||||||
14 | value of or credit given for traded-in tangible personal | ||||||
15 | property owned by the lessee, regardless of whether the | ||||||
16 | trade-in value thereof is assigned by the lessee to the lessor. | ||||||
17 | In the case of a motor vehicle that is sold for the purpose of | ||||||
18 | leasing for a defined period of longer than one year, the sale | ||||||
19 | occurs at the time of the delivery of the vehicle, regardless | ||||||
20 | of the due date of any lease payments. A lessor who incurs a | ||||||
21 | Retailers' Occupation Tax liability on the sale of a motor | ||||||
22 | vehicle coming off lease may not take a credit against that | ||||||
23 | liability for the Use Tax the lessor paid upon the purchase of | ||||||
24 | the motor vehicle (or for any tax the lessor paid with respect | ||||||
25 | to any amount received by the lessor from the lessee for the | ||||||
26 | leased vehicle that was not calculated at the time the lease |
| |||||||
| |||||||
1 | was executed) if the selling price of the motor vehicle at the | ||||||
2 | time of purchase was calculated using the definition of | ||||||
3 | "selling price" as defined in this paragraph.
Notwithstanding | ||||||
4 | any other provision of this Act to the contrary, lessors shall | ||||||
5 | file all returns and make all payments required under this | ||||||
6 | paragraph to the Department by electronic means in the manner | ||||||
7 | and form as required by the Department. This paragraph does not | ||||||
8 | apply to leases of motor vehicles for which, at the time the | ||||||
9 | lease is entered into, the term of the lease is not a defined | ||||||
10 | period, including leases with a defined initial period with the | ||||||
11 | option to continue the lease on a month-to-month or other basis | ||||||
12 | beyond the initial defined period. | ||||||
13 | The phrase "like kind and character" shall be liberally | ||||||
14 | construed
(including but not limited to any form of motor | ||||||
15 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
16 | agricultural implement for any other
kind of farm or | ||||||
17 | agricultural implement), while not including a kind of item
| ||||||
18 | which, if sold at retail by that retailer, would be exempt from | ||||||
19 | retailers'
occupation tax and use tax as an isolated or | ||||||
20 | occasional sale.
| ||||||
21 | "Gross receipts" from the sales of tangible personal | ||||||
22 | property at retail
means the total selling price or the amount | ||||||
23 | of such sales, as hereinbefore
defined. In the case of charge | ||||||
24 | and time sales, the amount thereof shall be
included only as | ||||||
25 | and when payments are received by the seller.
Receipts or other | ||||||
26 | consideration derived by a seller from
the sale, transfer or |
| |||||||
| |||||||
1 | assignment of accounts receivable to a wholly owned
subsidiary | ||||||
2 | will not be deemed payments prior to the time the purchaser
| ||||||
3 | makes payment on such accounts.
| ||||||
4 | "Department" means the Department of Revenue.
| ||||||
5 | "Person" means any natural individual, firm, partnership, | ||||||
6 | association,
joint stock company, joint adventure, public or | ||||||
7 | private corporation, limited
liability company, or a receiver, | ||||||
8 | executor, trustee, guardian or other
representative appointed | ||||||
9 | by order of any court.
| ||||||
10 | The isolated or occasional sale of tangible personal | ||||||
11 | property at retail
by a person who does not hold himself out as | ||||||
12 | being engaged (or who does not
habitually engage) in selling | ||||||
13 | such tangible personal property at retail, or
a sale through a | ||||||
14 | bulk vending machine, does not constitute engaging in a
| ||||||
15 | business of selling such tangible personal property at retail | ||||||
16 | within the
meaning of this Act; provided that any person who is | ||||||
17 | engaged in a business
which is not subject to the tax imposed | ||||||
18 | by this Act because of involving
the sale of or a contract to | ||||||
19 | sell real estate or a construction contract to
improve real | ||||||
20 | estate or a construction contract to engineer, install, and
| ||||||
21 | maintain an integrated system of products, but who, in the | ||||||
22 | course of
conducting such business,
transfers tangible | ||||||
23 | personal property to users or consumers in the finished
form in | ||||||
24 | which it was purchased, and which does not become real estate | ||||||
25 | or was
not engineered and installed, under any provision of a | ||||||
26 | construction contract or
real estate sale or real estate sales |
| |||||||
| |||||||
1 | agreement entered into with some other
person arising out of or | ||||||
2 | because of such nontaxable business, is engaged in the
business | ||||||
3 | of selling tangible personal property at retail to the extent | ||||||
4 | of the
value of the tangible personal property so transferred. | ||||||
5 | If, in such a
transaction, a separate charge is made for the | ||||||
6 | tangible personal property so
transferred, the value of such | ||||||
7 | property, for the purpose of this Act, shall be
the amount so | ||||||
8 | separately charged, but not less than the cost of such property
| ||||||
9 | to the transferor; if no separate charge is made, the value of | ||||||
10 | such property,
for the purposes of this Act, is the cost to the | ||||||
11 | transferor of such tangible
personal property. Construction | ||||||
12 | contracts for the improvement of real estate
consisting of | ||||||
13 | engineering, installation, and maintenance of voice, data, | ||||||
14 | video,
security, and all telecommunication systems do not | ||||||
15 | constitute engaging in a
business of selling tangible personal | ||||||
16 | property at retail within the meaning of
this Act if they are | ||||||
17 | sold at one specified contract price.
| ||||||
18 | A person who holds himself or herself out as being engaged | ||||||
19 | (or who habitually
engages) in selling tangible personal | ||||||
20 | property at retail is a person
engaged in the business of | ||||||
21 | selling tangible personal property at retail
hereunder with | ||||||
22 | respect to such sales (and not primarily in a service
| ||||||
23 | occupation) notwithstanding the fact that such person designs | ||||||
24 | and produces
such tangible personal property on special order | ||||||
25 | for the purchaser and in
such a way as to render the property | ||||||
26 | of value only to such purchaser, if
such tangible personal |
| |||||||
| |||||||
1 | property so produced on special order serves
substantially the | ||||||
2 | same function as stock or standard items of tangible
personal | ||||||
3 | property that are sold at retail.
| ||||||
4 | Persons who engage in the business of transferring tangible | ||||||
5 | personal
property upon the redemption of trading stamps are | ||||||
6 | engaged in the business
of selling such property at retail and | ||||||
7 | shall be liable for and shall pay
the tax imposed by this Act | ||||||
8 | on the basis of the retail value of the
property transferred | ||||||
9 | upon redemption of such stamps.
| ||||||
10 | "Bulk vending machine" means a vending machine,
containing | ||||||
11 | unsorted confections, nuts, toys, or other items designed
| ||||||
12 | primarily to be used or played with by children
which, when a | ||||||
13 | coin or coins of a denomination not larger than $0.50 are
| ||||||
14 | inserted, are dispensed in equal portions, at random and
| ||||||
15 | without selection by the customer.
| ||||||
16 | "Remote retailer" means a retailer that does not maintain | ||||||
17 | within this State, directly or by a subsidiary, an office, | ||||||
18 | distribution house, sales house, warehouse or other place of | ||||||
19 | business, or any agent or other representative operating within | ||||||
20 | this State under the authority of the retailer or its | ||||||
21 | subsidiary, irrespective of whether such place of business or | ||||||
22 | agent is located here permanently or temporarily or whether | ||||||
23 | such retailer or subsidiary is licensed to do business in this | ||||||
24 | State. | ||||||
25 | "Marketplace" means a physical or electronic place, forum, | ||||||
26 | platform, application, or other method by which a marketplace |
| |||||||
| |||||||
1 | seller sells or offers to sell items. | ||||||
2 | "Marketplace facilitator" means a person who, pursuant to | ||||||
3 | an agreement with an unrelated third-party marketplace seller, | ||||||
4 | directly or indirectly through one or more affiliates | ||||||
5 | facilitates a retail sale by an unrelated third party | ||||||
6 | marketplace seller by: | ||||||
7 | (1) listing or advertising for sale by the marketplace | ||||||
8 | seller in a marketplace, tangible personal property that is | ||||||
9 | subject to tax under this Act; and | ||||||
10 | (2) either directly or indirectly, through agreements | ||||||
11 | or arrangements with third parties, collecting payment | ||||||
12 | from the customer and transmitting that payment to the | ||||||
13 | marketplace seller regardless of whether the marketplace | ||||||
14 | facilitator receives compensation or other consideration | ||||||
15 | in exchange for its services. | ||||||
16 | A person who provides advertising services, including | ||||||
17 | listing products for sale, is not considered a marketplace | ||||||
18 | facilitator, so long as the advertising service platform or | ||||||
19 | forum does not engage, directly or indirectly through one or | ||||||
20 | more affiliated persons, in the activities described in | ||||||
21 | paragraph (2) of this definition of "marketplace facilitator". | ||||||
22 | "Marketplace facilitator" does not include any person | ||||||
23 | licensed under the Auction License Act. This exemption does not | ||||||
24 | apply to any person who is an Internet auction listing service, | ||||||
25 | as defined by the Auction License Act. | ||||||
26 | "Marketplace seller" means a person that makes sales |
| |||||||
| |||||||
1 | through a marketplace operated by an unrelated third party | ||||||
2 | marketplace facilitator. | ||||||
3 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
| ||||||
4 | (35 ILCS 120/2-5)
| ||||||
5 | Sec. 2-5. Exemptions. Gross receipts from proceeds from the | ||||||
6 | sale of
the following tangible personal property are exempt | ||||||
7 | from the tax imposed
by this Act:
| ||||||
8 | (1) Farm chemicals.
| ||||||
9 | (2) Farm machinery and equipment, both new and used, | ||||||
10 | including that
manufactured on special order, certified by | ||||||
11 | the purchaser to be used
primarily for production | ||||||
12 | agriculture or State or federal agricultural
programs, | ||||||
13 | including individual replacement parts for the machinery | ||||||
14 | and
equipment, including machinery and equipment purchased | ||||||
15 | for lease,
and including implements of husbandry defined in | ||||||
16 | Section 1-130 of
the Illinois Vehicle Code, farm machinery | ||||||
17 | and agricultural chemical and
fertilizer spreaders, and | ||||||
18 | nurse wagons required to be registered
under Section 3-809 | ||||||
19 | of the Illinois Vehicle Code,
but
excluding other motor | ||||||
20 | vehicles required to be registered under the Illinois
| ||||||
21 | Vehicle Code.
Horticultural polyhouses or hoop houses used | ||||||
22 | for propagating, growing, or
overwintering plants shall be | ||||||
23 | considered farm machinery and equipment under
this item | ||||||
24 | (2).
Agricultural chemical tender tanks and dry boxes shall | ||||||
25 | include units sold
separately from a motor vehicle required |
| |||||||
| |||||||
1 | to be licensed and units sold mounted
on a motor vehicle | ||||||
2 | required to be licensed, if the selling price of the tender
| ||||||
3 | is separately stated.
| ||||||
4 | Farm machinery and equipment shall include precision | ||||||
5 | farming equipment
that is
installed or purchased to be | ||||||
6 | installed on farm machinery and equipment
including, but | ||||||
7 | not limited to, tractors, harvesters, sprayers, planters,
| ||||||
8 | seeders, or spreaders.
Precision farming equipment | ||||||
9 | includes, but is not limited to,
soil testing sensors, | ||||||
10 | computers, monitors, software, global positioning
and | ||||||
11 | mapping systems, and other such equipment.
| ||||||
12 | Farm machinery and equipment also includes computers, | ||||||
13 | sensors, software, and
related equipment used primarily in | ||||||
14 | the
computer-assisted operation of production agriculture | ||||||
15 | facilities, equipment,
and activities such as, but
not | ||||||
16 | limited to,
the collection, monitoring, and correlation of
| ||||||
17 | animal and crop data for the purpose of
formulating animal | ||||||
18 | diets and agricultural chemicals. This item (2) is exempt
| ||||||
19 | from the provisions of
Section 2-70.
| ||||||
20 | (3) Until July 1, 2003, distillation machinery and | ||||||
21 | equipment, sold as a
unit or kit,
assembled or installed by | ||||||
22 | the retailer, certified by the user to be used
only for the | ||||||
23 | production of ethyl alcohol that will be used for | ||||||
24 | consumption
as motor fuel or as a component of motor fuel | ||||||
25 | for the personal use of the
user, and not subject to sale | ||||||
26 | or resale.
|
| |||||||
| |||||||
1 | (4) Until July 1, 2003 and beginning again September 1, | ||||||
2 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
3 | equipment, including
repair and
replacement parts, both | ||||||
4 | new and used, and including that manufactured on
special | ||||||
5 | order or purchased for lease, certified by the purchaser to | ||||||
6 | be used
primarily for graphic arts production.
Equipment | ||||||
7 | includes chemicals or
chemicals acting as catalysts but | ||||||
8 | only if
the chemicals or chemicals acting as catalysts | ||||||
9 | effect a direct and immediate
change upon a
graphic arts | ||||||
10 | product. Beginning on July 1, 2017, graphic arts machinery | ||||||
11 | and equipment is included in the manufacturing and | ||||||
12 | assembling machinery and equipment exemption under | ||||||
13 | paragraph (14).
| ||||||
14 | (5) A motor vehicle that is used for automobile | ||||||
15 | renting, as defined in the Automobile Renting Occupation | ||||||
16 | and Use Tax Act. This paragraph is exempt from
the | ||||||
17 | provisions of Section 2-70.
| ||||||
18 | (6) Personal property sold by a teacher-sponsored | ||||||
19 | student organization
affiliated with an elementary or | ||||||
20 | secondary school located in Illinois.
| ||||||
21 | (7) Until July 1, 2003, proceeds of that portion of the | ||||||
22 | selling price of
a passenger car the
sale of which is | ||||||
23 | subject to the Replacement Vehicle Tax.
| ||||||
24 | (8) Personal property sold to an Illinois county fair | ||||||
25 | association for
use in conducting, operating, or promoting | ||||||
26 | the county fair.
|
| |||||||
| |||||||
1 | (9) Personal property sold to a not-for-profit arts
or | ||||||
2 | cultural organization that establishes, by proof required | ||||||
3 | by the Department
by
rule, that it has received an | ||||||
4 | exemption under Section 501(c)(3) of the
Internal Revenue | ||||||
5 | Code and that is organized and operated primarily for the
| ||||||
6 | presentation
or support of arts or cultural programming, | ||||||
7 | activities, or services. These
organizations include, but | ||||||
8 | are not limited to, music and dramatic arts
organizations | ||||||
9 | such as symphony orchestras and theatrical groups, arts and
| ||||||
10 | cultural service organizations, local arts councils, | ||||||
11 | visual arts organizations,
and media arts organizations.
| ||||||
12 | On and after July 1, 2001 (the effective date of Public Act | ||||||
13 | 92-35), however, an entity otherwise eligible for this | ||||||
14 | exemption shall not
make tax-free purchases unless it has | ||||||
15 | an active identification number issued by
the Department.
| ||||||
16 | (10) Personal property sold by a corporation, society, | ||||||
17 | association,
foundation, institution, or organization, | ||||||
18 | other than a limited liability
company, that is organized | ||||||
19 | and operated as a not-for-profit service enterprise
for the | ||||||
20 | benefit of persons 65 years of age or older if the personal | ||||||
21 | property
was not purchased by the enterprise for the | ||||||
22 | purpose of resale by the
enterprise.
| ||||||
23 | (11) Personal property sold to a governmental body, to | ||||||
24 | a corporation,
society, association, foundation, or | ||||||
25 | institution organized and operated
exclusively for | ||||||
26 | charitable, religious, or educational purposes, or to a
|
| |||||||
| |||||||
1 | not-for-profit corporation, society, association, | ||||||
2 | foundation, institution,
or organization that has no | ||||||
3 | compensated officers or employees and that is
organized and | ||||||
4 | operated primarily for the recreation of persons 55 years | ||||||
5 | of
age or older. A limited liability company may qualify | ||||||
6 | for the exemption under
this paragraph only if the limited | ||||||
7 | liability company is organized and operated
exclusively | ||||||
8 | for educational purposes. On and after July 1, 1987, | ||||||
9 | however, no
entity otherwise eligible for this exemption | ||||||
10 | shall make tax-free purchases
unless it has an active | ||||||
11 | identification number issued by the Department.
| ||||||
12 | (12) (Blank).
| ||||||
13 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
14 | 2004, motor vehicles of the second division
with a gross | ||||||
15 | vehicle weight in excess of 8,000 pounds
that
are
subject | ||||||
16 | to the commercial distribution fee imposed under Section | ||||||
17 | 3-815.1 of
the Illinois
Vehicle Code. Beginning on July 1, | ||||||
18 | 2004 and through June 30, 2005, the use in this State of | ||||||
19 | motor vehicles of the second division: (i) with a gross | ||||||
20 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
21 | are subject to the commercial distribution fee imposed | ||||||
22 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
23 | (iii) that are primarily used for commercial purposes. | ||||||
24 | Through June 30, 2005, this
exemption applies to repair and | ||||||
25 | replacement parts added
after the
initial purchase of such | ||||||
26 | a motor vehicle if that motor vehicle is used in a
manner |
| |||||||
| |||||||
1 | that
would qualify for the rolling stock exemption | ||||||
2 | otherwise provided for in this
Act. For purposes of this | ||||||
3 | paragraph, "used for commercial purposes" means the | ||||||
4 | transportation of persons or property in furtherance of any | ||||||
5 | commercial or industrial enterprise whether for-hire or | ||||||
6 | not.
| ||||||
7 | (13) Proceeds from sales to owners, lessors, or
| ||||||
8 | shippers of
tangible personal property that is utilized by | ||||||
9 | interstate carriers for
hire for use as rolling stock | ||||||
10 | moving in interstate commerce
and equipment operated by a | ||||||
11 | telecommunications provider, licensed as a
common carrier | ||||||
12 | by the Federal Communications Commission, which is
| ||||||
13 | permanently installed in or affixed to aircraft moving in | ||||||
14 | interstate commerce.
| ||||||
15 | (14) Machinery and equipment that will be used by the | ||||||
16 | purchaser, or a
lessee of the purchaser, primarily in the | ||||||
17 | process of manufacturing or
assembling tangible personal | ||||||
18 | property for wholesale or retail sale or
lease, whether the | ||||||
19 | sale or lease is made directly by the manufacturer or by
| ||||||
20 | some other person, whether the materials used in the | ||||||
21 | process are owned by
the manufacturer or some other person, | ||||||
22 | or whether the sale or lease is made
apart from or as an | ||||||
23 | incident to the seller's engaging in the service
occupation | ||||||
24 | of producing machines, tools, dies, jigs, patterns, | ||||||
25 | gauges, or
other similar items of no commercial value on | ||||||
26 | special order for a particular
purchaser. The exemption |
| |||||||
| |||||||
1 | provided by this paragraph (14) does not include machinery | ||||||
2 | and equipment used in (i) the generation of electricity for | ||||||
3 | wholesale or retail sale; (ii) the generation or treatment | ||||||
4 | of natural or artificial gas for wholesale or retail sale | ||||||
5 | that is delivered to customers through pipes, pipelines, or | ||||||
6 | mains; or (iii) the treatment of water for wholesale or | ||||||
7 | retail sale that is delivered to customers through pipes, | ||||||
8 | pipelines, or mains. The provisions of Public Act 98-583 | ||||||
9 | are declaratory of existing law as to the meaning and scope | ||||||
10 | of this exemption. Beginning on July 1, 2017, the exemption | ||||||
11 | provided by this paragraph (14) includes, but is not | ||||||
12 | limited to, graphic arts machinery and equipment, as | ||||||
13 | defined in paragraph (4) of this Section.
| ||||||
14 | (15) Proceeds of mandatory service charges separately | ||||||
15 | stated on
customers' bills for purchase and consumption of | ||||||
16 | food and beverages, to the
extent that the proceeds of the | ||||||
17 | service charge are in fact turned over as
tips or as a | ||||||
18 | substitute for tips to the employees who participate | ||||||
19 | directly
in preparing, serving, hosting or cleaning up the | ||||||
20 | food or beverage function
with respect to which the service | ||||||
21 | charge is imposed.
| ||||||
22 | (16) Tangible personal property sold to a purchaser if | ||||||
23 | the purchaser is exempt from use tax by operation of | ||||||
24 | federal law. This paragraph is exempt from the provisions | ||||||
25 | of Section 2-70.
| ||||||
26 | (17) Tangible personal property sold to a common |
| |||||||
| |||||||
1 | carrier by rail or
motor that
receives the physical | ||||||
2 | possession of the property in Illinois and that
transports | ||||||
3 | the property, or shares with another common carrier in the
| ||||||
4 | transportation of the property, out of Illinois on a | ||||||
5 | standard uniform bill
of lading showing the seller of the | ||||||
6 | property as the shipper or consignor of
the property to a | ||||||
7 | destination outside Illinois, for use outside Illinois.
| ||||||
8 | (18) Legal tender, currency, medallions, or gold or | ||||||
9 | silver coinage
issued by the State of Illinois, the | ||||||
10 | government of the United States of
America, or the | ||||||
11 | government of any foreign country, and bullion.
| ||||||
12 | (19) Until July 1, 2003, oil field exploration, | ||||||
13 | drilling, and production
equipment, including
(i) rigs and | ||||||
14 | parts of rigs, rotary rigs, cable tool
rigs, and workover | ||||||
15 | rigs, (ii) pipe and tubular goods, including casing and
| ||||||
16 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
17 | storage tanks and flow
lines, (v) any individual | ||||||
18 | replacement part for oil field exploration,
drilling, and | ||||||
19 | production equipment, and (vi) machinery and equipment | ||||||
20 | purchased
for lease; but
excluding motor vehicles required | ||||||
21 | to be registered under the Illinois
Vehicle Code.
| ||||||
22 | (20) Photoprocessing machinery and equipment, | ||||||
23 | including repair and
replacement parts, both new and used, | ||||||
24 | including that manufactured on
special order, certified by | ||||||
25 | the purchaser to be used primarily for
photoprocessing, and | ||||||
26 | including photoprocessing machinery and equipment
|
| |||||||
| |||||||
1 | purchased for lease.
| ||||||
2 | (21) Until July 1, 2023, coal and aggregate | ||||||
3 | exploration, mining, off-highway hauling,
processing,
| ||||||
4 | maintenance, and reclamation equipment, including
| ||||||
5 | replacement parts and equipment, and including
equipment | ||||||
6 | purchased for lease, but excluding motor vehicles required | ||||||
7 | to be
registered under the Illinois Vehicle Code. The | ||||||
8 | changes made to this Section by Public Act 97-767 apply on | ||||||
9 | and after July 1, 2003, but no claim for credit or refund | ||||||
10 | is allowed on or after August 16, 2013 (the effective date | ||||||
11 | of Public Act 98-456)
for such taxes paid during the period | ||||||
12 | beginning July 1, 2003 and ending on August 16, 2013 (the | ||||||
13 | effective date of Public Act 98-456).
| ||||||
14 | (22) Until June 30, 2013, fuel and petroleum products | ||||||
15 | sold to or used by an air carrier,
certified by the carrier | ||||||
16 | to be used for consumption, shipment, or storage
in the | ||||||
17 | conduct of its business as an air common carrier, for a | ||||||
18 | flight
destined for or returning from a location or | ||||||
19 | locations
outside the United States without regard to | ||||||
20 | previous or subsequent domestic
stopovers.
| ||||||
21 | Beginning July 1, 2013, fuel and petroleum products | ||||||
22 | sold to or used by an air carrier, certified by the carrier | ||||||
23 | to be used for consumption, shipment, or storage in the | ||||||
24 | conduct of its business as an air common carrier, for a | ||||||
25 | flight that (i) is engaged in foreign trade or is engaged | ||||||
26 | in trade between the United States and any of its |
| |||||||
| |||||||
1 | possessions and (ii) transports at least one individual or | ||||||
2 | package for hire from the city of origination to the city | ||||||
3 | of final destination on the same aircraft, without regard | ||||||
4 | to a change in the flight number of that aircraft. | ||||||
5 | (23) A transaction in which the purchase order is | ||||||
6 | received by a florist
who is located outside Illinois, but | ||||||
7 | who has a florist located in Illinois
deliver the property | ||||||
8 | to the purchaser or the purchaser's donee in Illinois.
| ||||||
9 | (24) Fuel consumed or used in the operation of ships, | ||||||
10 | barges, or vessels
that are used primarily in or for the | ||||||
11 | transportation of property or the
conveyance of persons for | ||||||
12 | hire on rivers bordering on this State if the
fuel is | ||||||
13 | delivered by the seller to the purchaser's barge, ship, or | ||||||
14 | vessel
while it is afloat upon that bordering river.
| ||||||
15 | (25) Except as provided in item (25-5) of this Section, | ||||||
16 | a
motor vehicle sold in this State to a nonresident even | ||||||
17 | though the
motor vehicle is delivered to the nonresident in | ||||||
18 | this State, if the motor
vehicle is not to be titled in | ||||||
19 | this State, and if a drive-away permit
is issued to the | ||||||
20 | motor vehicle as provided in Section 3-603 of the Illinois
| ||||||
21 | Vehicle Code or if the nonresident purchaser has vehicle | ||||||
22 | registration
plates to transfer to the motor vehicle upon | ||||||
23 | returning to his or her home
state. The issuance of the | ||||||
24 | drive-away permit or having
the
out-of-state registration | ||||||
25 | plates to be transferred is prima facie evidence
that the | ||||||
26 | motor vehicle will not be titled in this State.
|
| |||||||
| |||||||
1 | (25-5) The exemption under item (25) does not apply if | ||||||
2 | the state in which the motor vehicle will be titled does | ||||||
3 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
4 | and delivered in that state to an Illinois resident but | ||||||
5 | titled in Illinois. The tax collected under this Act on the | ||||||
6 | sale of a motor vehicle in this State to a resident of | ||||||
7 | another state that does not allow a reciprocal exemption | ||||||
8 | shall be imposed at a rate equal to the state's rate of tax | ||||||
9 | on taxable property in the state in which the purchaser is | ||||||
10 | a resident, except that the tax shall not exceed the tax | ||||||
11 | that would otherwise be imposed under this Act. At the time | ||||||
12 | of the sale, the purchaser shall execute a statement, | ||||||
13 | signed under penalty of perjury, of his or her intent to | ||||||
14 | title the vehicle in the state in which the purchaser is a | ||||||
15 | resident within 30 days after the sale and of the fact of | ||||||
16 | the payment to the State of Illinois of tax in an amount | ||||||
17 | equivalent to the state's rate of tax on taxable property | ||||||
18 | in his or her state of residence and shall submit the | ||||||
19 | statement to the appropriate tax collection agency in his | ||||||
20 | or her state of residence. In addition, the retailer must | ||||||
21 | retain a signed copy of the statement in his or her | ||||||
22 | records. Nothing in this item shall be construed to require | ||||||
23 | the removal of the vehicle from this state following the | ||||||
24 | filing of an intent to title the vehicle in the purchaser's | ||||||
25 | state of residence if the purchaser titles the vehicle in | ||||||
26 | his or her state of residence within 30 days after the date |
| |||||||
| |||||||
1 | of sale. The tax collected under this Act in accordance | ||||||
2 | with this item (25-5) shall be proportionately distributed | ||||||
3 | as if the tax were collected at the 6.25% general rate | ||||||
4 | imposed under this Act.
| ||||||
5 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
6 | under this Act on the sale of an aircraft, as defined in | ||||||
7 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
8 | following conditions are met: | ||||||
9 | (1) the aircraft leaves this State within 15 days | ||||||
10 | after the later of either the issuance of the final | ||||||
11 | billing for the sale of the aircraft, or the authorized | ||||||
12 | approval for return to service, completion of the | ||||||
13 | maintenance record entry, and completion of the test | ||||||
14 | flight and ground test for inspection, as required by | ||||||
15 | 14 C.F.R. 91.407; | ||||||
16 | (2) the aircraft is not based or registered in this | ||||||
17 | State after the sale of the aircraft; and | ||||||
18 | (3) the seller retains in his or her books and | ||||||
19 | records and provides to the Department a signed and | ||||||
20 | dated certification from the purchaser, on a form | ||||||
21 | prescribed by the Department, certifying that the | ||||||
22 | requirements of this item (25-7) are met. The | ||||||
23 | certificate must also include the name and address of | ||||||
24 | the purchaser, the address of the location where the | ||||||
25 | aircraft is to be titled or registered, the address of | ||||||
26 | the primary physical location of the aircraft, and |
| |||||||
| |||||||
1 | other information that the Department may reasonably | ||||||
2 | require. | ||||||
3 | For purposes of this item (25-7): | ||||||
4 | "Based in this State" means hangared, stored, or | ||||||
5 | otherwise used, excluding post-sale customizations as | ||||||
6 | defined in this Section, for 10 or more days in each | ||||||
7 | 12-month period immediately following the date of the sale | ||||||
8 | of the aircraft. | ||||||
9 | "Registered in this State" means an aircraft | ||||||
10 | registered with the Department of Transportation, | ||||||
11 | Aeronautics Division, or titled or registered with the | ||||||
12 | Federal Aviation Administration to an address located in | ||||||
13 | this State. | ||||||
14 | This paragraph (25-7) is exempt from the provisions
of
| ||||||
15 | Section 2-70.
| ||||||
16 | (26) Semen used for artificial insemination of | ||||||
17 | livestock for direct
agricultural production.
| ||||||
18 | (27) Horses, or interests in horses, registered with | ||||||
19 | and meeting the
requirements of any of the
Arabian Horse | ||||||
20 | Club Registry of America, Appaloosa Horse Club, American | ||||||
21 | Quarter
Horse Association, United States
Trotting | ||||||
22 | Association, or Jockey Club, as appropriate, used for
| ||||||
23 | purposes of breeding or racing for prizes. This item (27) | ||||||
24 | is exempt from the provisions of Section 2-70, and the | ||||||
25 | exemption provided for under this item (27) applies for all | ||||||
26 | periods beginning May 30, 1995, but no claim for credit or |
| |||||||
| |||||||
1 | refund is allowed on or after January 1, 2008 (the | ||||||
2 | effective date of Public Act 95-88)
for such taxes paid | ||||||
3 | during the period beginning May 30, 2000 and ending on | ||||||
4 | January 1, 2008 (the effective date of Public Act 95-88).
| ||||||
5 | (28) Computers and communications equipment utilized | ||||||
6 | for any
hospital
purpose
and equipment used in the | ||||||
7 | diagnosis,
analysis, or treatment of hospital patients | ||||||
8 | sold to a lessor who leases the
equipment, under a lease of | ||||||
9 | one year or longer executed or in effect at the
time of the | ||||||
10 | purchase, to a
hospital
that has been issued an active tax | ||||||
11 | exemption identification number by the
Department under | ||||||
12 | Section 1g of this Act.
| ||||||
13 | (29) Personal property sold to a lessor who leases the
| ||||||
14 | property, under a
lease of one year or longer executed or | ||||||
15 | in effect at the time of the purchase,
to a governmental | ||||||
16 | body
that has been issued an active tax exemption | ||||||
17 | identification number by the
Department under Section 1g of | ||||||
18 | this Act.
| ||||||
19 | (30) Beginning with taxable years ending on or after | ||||||
20 | December
31, 1995
and
ending with taxable years ending on | ||||||
21 | or before December 31, 2004,
personal property that is
| ||||||
22 | donated for disaster relief to be used in a State or | ||||||
23 | federally declared
disaster area in Illinois or bordering | ||||||
24 | Illinois by a manufacturer or retailer
that is registered | ||||||
25 | in this State to a corporation, society, association,
| ||||||
26 | foundation, or institution that has been issued a sales tax |
| |||||||
| |||||||
1 | exemption
identification number by the Department that | ||||||
2 | assists victims of the disaster
who reside within the | ||||||
3 | declared disaster area.
| ||||||
4 | (31) Beginning with taxable years ending on or after | ||||||
5 | December
31, 1995 and
ending with taxable years ending on | ||||||
6 | or before December 31, 2004, personal
property that is used | ||||||
7 | in the performance of infrastructure repairs in this
State, | ||||||
8 | including but not limited to municipal roads and streets, | ||||||
9 | access roads,
bridges, sidewalks, waste disposal systems, | ||||||
10 | water and sewer line extensions,
water distribution and | ||||||
11 | purification facilities, storm water drainage and
| ||||||
12 | retention facilities, and sewage treatment facilities, | ||||||
13 | resulting from a State
or federally declared disaster in | ||||||
14 | Illinois or bordering Illinois when such
repairs are | ||||||
15 | initiated on facilities located in the declared disaster | ||||||
16 | area
within 6 months after the disaster.
| ||||||
17 | (32) Beginning July 1, 1999, game or game birds sold at | ||||||
18 | a "game breeding
and
hunting preserve area" as that term is | ||||||
19 | used
in the
Wildlife Code. This paragraph is exempt from | ||||||
20 | the provisions
of
Section 2-70.
| ||||||
21 | (33) A motor vehicle, as that term is defined in | ||||||
22 | Section 1-146
of the
Illinois Vehicle Code, that is donated | ||||||
23 | to a corporation, limited liability
company, society, | ||||||
24 | association, foundation, or institution that is determined | ||||||
25 | by
the Department to be organized and operated exclusively | ||||||
26 | for educational
purposes. For purposes of this exemption, |
| |||||||
| |||||||
1 | "a corporation, limited liability
company, society, | ||||||
2 | association, foundation, or institution organized and
| ||||||
3 | operated
exclusively for educational purposes" means all | ||||||
4 | tax-supported public schools,
private schools that offer | ||||||
5 | systematic instruction in useful branches of
learning by | ||||||
6 | methods common to public schools and that compare favorably | ||||||
7 | in
their scope and intensity with the course of study | ||||||
8 | presented in tax-supported
schools, and vocational or | ||||||
9 | technical schools or institutes organized and
operated | ||||||
10 | exclusively to provide a course of study of not less than 6 | ||||||
11 | weeks
duration and designed to prepare individuals to | ||||||
12 | follow a trade or to pursue a
manual, technical, | ||||||
13 | mechanical, industrial, business, or commercial
| ||||||
14 | occupation.
| ||||||
15 | (34) Beginning January 1, 2000, personal property, | ||||||
16 | including food, purchased
through fundraising events for | ||||||
17 | the benefit of a public or private elementary or
secondary | ||||||
18 | school, a group of those schools, or one or more school | ||||||
19 | districts if
the events are sponsored by an entity | ||||||
20 | recognized by the school district that
consists primarily | ||||||
21 | of volunteers and includes parents and teachers of the
| ||||||
22 | school children. This paragraph does not apply to | ||||||
23 | fundraising events (i) for
the benefit of private home | ||||||
24 | instruction or (ii) for which the fundraising
entity | ||||||
25 | purchases the personal property sold at the events from | ||||||
26 | another
individual or entity that sold the property for the |
| |||||||
| |||||||
1 | purpose of resale by the
fundraising entity and that | ||||||
2 | profits from the sale to the fundraising entity.
This | ||||||
3 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
4 | (35) Beginning January 1, 2000 and through December 31, | ||||||
5 | 2001, new or used
automatic vending machines that prepare | ||||||
6 | and serve hot food and beverages,
including coffee, soup, | ||||||
7 | and other items, and replacement parts for these
machines. | ||||||
8 | Beginning January 1, 2002 and through June 30, 2003, | ||||||
9 | machines
and parts for machines used in
commercial, | ||||||
10 | coin-operated amusement and vending business if a use or | ||||||
11 | occupation
tax is paid on the gross receipts derived from | ||||||
12 | the use of the commercial,
coin-operated amusement and | ||||||
13 | vending machines. This paragraph is exempt from
the | ||||||
14 | provisions of Section 2-70.
| ||||||
15 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
16 | 2016, food for human consumption that is to be consumed off
| ||||||
17 | the premises where it is sold (other than alcoholic | ||||||
18 | beverages, soft drinks,
and food that has been prepared for | ||||||
19 | immediate consumption) and prescription
and | ||||||
20 | nonprescription medicines, drugs, medical appliances, and | ||||||
21 | insulin, urine
testing materials, syringes, and needles | ||||||
22 | used by diabetics, for human use, when
purchased for use by | ||||||
23 | a person receiving medical assistance under Article V of
| ||||||
24 | the Illinois Public Aid Code who resides in a licensed | ||||||
25 | long-term care facility,
as defined in the Nursing Home | ||||||
26 | Care Act, or a licensed facility as defined in the ID/DD |
| |||||||
| |||||||
1 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
2 | Mental Health Rehabilitation Act of 2013.
| ||||||
3 | (36) Beginning August 2, 2001, computers and | ||||||
4 | communications equipment
utilized for any hospital purpose | ||||||
5 | and equipment used in the diagnosis,
analysis, or treatment | ||||||
6 | of hospital patients sold to a lessor who leases the
| ||||||
7 | equipment, under a lease of one year or longer executed or | ||||||
8 | in effect at the
time of the purchase, to a hospital that | ||||||
9 | has been issued an active tax
exemption identification | ||||||
10 | number by the Department under Section 1g of this Act.
This | ||||||
11 | paragraph is exempt from the provisions of Section 2-70.
| ||||||
12 | (37) Beginning August 2, 2001, personal property sold | ||||||
13 | to a lessor who
leases the property, under a lease of one | ||||||
14 | year or longer executed or in effect
at the time of the | ||||||
15 | purchase, to a governmental body that has been issued an
| ||||||
16 | active tax exemption identification number by the | ||||||
17 | Department under Section 1g
of this Act. This paragraph is | ||||||
18 | exempt from the provisions of Section 2-70.
| ||||||
19 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
20 | 2016, tangible personal property purchased
from an | ||||||
21 | Illinois retailer by a taxpayer engaged in centralized | ||||||
22 | purchasing
activities in Illinois who will, upon receipt of | ||||||
23 | the property in Illinois,
temporarily store the property in | ||||||
24 | Illinois (i) for the purpose of subsequently
transporting | ||||||
25 | it outside this State for use or consumption thereafter | ||||||
26 | solely
outside this State or (ii) for the purpose of being |
| |||||||
| |||||||
1 | processed, fabricated, or
manufactured into, attached to, | ||||||
2 | or incorporated into other tangible personal
property to be | ||||||
3 | transported outside this State and thereafter used or | ||||||
4 | consumed
solely outside this State. The Director of Revenue | ||||||
5 | shall, pursuant to rules
adopted in accordance with the | ||||||
6 | Illinois Administrative Procedure Act, issue a
permit to | ||||||
7 | any taxpayer in good standing with the Department who is | ||||||
8 | eligible for
the exemption under this paragraph (38). The | ||||||
9 | permit issued under
this paragraph (38) shall authorize the | ||||||
10 | holder, to the extent and
in the manner specified in the | ||||||
11 | rules adopted under this Act, to purchase
tangible personal | ||||||
12 | property from a retailer exempt from the taxes imposed by
| ||||||
13 | this Act. Taxpayers shall maintain all necessary books and | ||||||
14 | records to
substantiate the use and consumption of all such | ||||||
15 | tangible personal property
outside of the State of | ||||||
16 | Illinois.
| ||||||
17 | (39) Beginning January 1, 2008, tangible personal | ||||||
18 | property used in the construction or maintenance of a | ||||||
19 | community water supply, as defined under Section 3.145 of | ||||||
20 | the Environmental Protection Act, that is operated by a | ||||||
21 | not-for-profit corporation that holds a valid water supply | ||||||
22 | permit issued under Title IV of the Environmental | ||||||
23 | Protection Act. This paragraph is exempt from the | ||||||
24 | provisions of Section 2-70.
| ||||||
25 | (40) Beginning January 1, 2010 and continuing through | ||||||
26 | December 31, 2024, materials, parts, equipment, |
| |||||||
| |||||||
1 | components, and furnishings incorporated into or upon an | ||||||
2 | aircraft as part of the modification, refurbishment, | ||||||
3 | completion, replacement, repair, or maintenance of the | ||||||
4 | aircraft. This exemption includes consumable supplies used | ||||||
5 | in the modification, refurbishment, completion, | ||||||
6 | replacement, repair, and maintenance of aircraft, but | ||||||
7 | excludes any materials, parts, equipment, components, and | ||||||
8 | consumable supplies used in the modification, replacement, | ||||||
9 | repair, and maintenance of aircraft engines or power | ||||||
10 | plants, whether such engines or power plants are installed | ||||||
11 | or uninstalled upon any such aircraft. "Consumable | ||||||
12 | supplies" include, but are not limited to, adhesive, tape, | ||||||
13 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
14 | latex gloves, and protective films. This exemption applies | ||||||
15 | only to the sale of qualifying tangible personal property | ||||||
16 | to persons who modify, refurbish, complete, replace, or | ||||||
17 | maintain an aircraft and who (i) hold an Air Agency | ||||||
18 | Certificate and are empowered to operate an approved repair | ||||||
19 | station by the Federal Aviation Administration, (ii) have a | ||||||
20 | Class IV Rating, and (iii) conduct operations in accordance | ||||||
21 | with Part 145 of the Federal Aviation Regulations. The | ||||||
22 | exemption does not include aircraft operated by a | ||||||
23 | commercial air carrier providing scheduled passenger air | ||||||
24 | service pursuant to authority issued under Part 121 or Part | ||||||
25 | 129 of the Federal Aviation Regulations. The changes made | ||||||
26 | to this paragraph (40) by Public Act 98-534 are declarative |
| |||||||
| |||||||
1 | of existing law. It is the intent of the General Assembly | ||||||
2 | that the exemption under this paragraph (40) applies | ||||||
3 | continuously from January 1, 2010 through December 31, | ||||||
4 | 2024; however, no claim for credit or refund is allowed for | ||||||
5 | taxes paid as a result of the disallowance of this | ||||||
6 | exemption on or after January 1, 2015 and prior to the | ||||||
7 | effective date of this amendatory Act of the 101st General | ||||||
8 | Assembly. | ||||||
9 | (41) Tangible personal property sold to a | ||||||
10 | public-facilities corporation, as described in Section | ||||||
11 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
12 | constructing or furnishing a municipal convention hall, | ||||||
13 | but only if the legal title to the municipal convention | ||||||
14 | hall is transferred to the municipality without any further | ||||||
15 | consideration by or on behalf of the municipality at the | ||||||
16 | time of the completion of the municipal convention hall or | ||||||
17 | upon the retirement or redemption of any bonds or other | ||||||
18 | debt instruments issued by the public-facilities | ||||||
19 | corporation in connection with the development of the | ||||||
20 | municipal convention hall. This exemption includes | ||||||
21 | existing public-facilities corporations as provided in | ||||||
22 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
23 | paragraph is exempt from the provisions of Section 2-70. | ||||||
24 | (42) Beginning January 1, 2017, menstrual pads, | ||||||
25 | tampons, and menstrual cups. | ||||||
26 | (43) Merchandise that is subject to the Rental Purchase |
| |||||||
| |||||||
1 | Agreement Occupation and Use Tax. The purchaser must | ||||||
2 | certify that the item is purchased to be rented subject to | ||||||
3 | a rental purchase agreement, as defined in the Rental | ||||||
4 | Purchase Agreement Act, and provide proof of registration | ||||||
5 | under the Rental Purchase Agreement Occupation and Use Tax | ||||||
6 | Act. This paragraph is exempt from the provisions of | ||||||
7 | Section 2-70. | ||||||
8 | (44) Qualified tangible personal property used in the | ||||||
9 | construction or operation of a data center that has been | ||||||
10 | granted a certificate of exemption by the Department of | ||||||
11 | Commerce and Economic Opportunity, whether that tangible | ||||||
12 | personal property is purchased by the owner, operator, or | ||||||
13 | tenant of the data center or by a contractor or | ||||||
14 | subcontractor of the owner, operator, or tenant. Data | ||||||
15 | centers that would have qualified for a certificate of | ||||||
16 | exemption prior to January 1, 2020 had this amendatory Act | ||||||
17 | of the 101st General Assembly been in effect, may apply for | ||||||
18 | and obtain an exemption for subsequent purchases of | ||||||
19 | computer equipment or enabling software purchased or | ||||||
20 | leased to upgrade, supplement, or replace computer | ||||||
21 | equipment or enabling software purchased or leased in the | ||||||
22 | original investment that would have qualified. | ||||||
23 | The Department of Commerce and Economic Opportunity | ||||||
24 | shall grant a certificate of exemption under this item (44) | ||||||
25 | to qualified data centers as defined by Section 605-1025 of | ||||||
26 | the Department of Commerce and Economic Opportunity Law of |
| |||||||
| |||||||
1 | the
Civil Administrative Code of Illinois. | ||||||
2 | For the purposes of this item (44): | ||||||
3 | "Data center" means a building or a series of | ||||||
4 | buildings rehabilitated or constructed to house | ||||||
5 | working servers in one physical location or multiple | ||||||
6 | sites within the State of Illinois. | ||||||
7 | "Qualified tangible personal property" means: | ||||||
8 | electrical systems and equipment; climate control and | ||||||
9 | chilling equipment and systems; mechanical systems and | ||||||
10 | equipment; monitoring and secure systems; emergency | ||||||
11 | generators; hardware; computers; servers; data storage | ||||||
12 | devices; network connectivity equipment; racks; | ||||||
13 | cabinets; telecommunications cabling infrastructure; | ||||||
14 | raised floor systems; peripheral components or | ||||||
15 | systems; software; mechanical, electrical, or plumbing | ||||||
16 | systems; battery systems; cooling systems and towers; | ||||||
17 | temperature control systems; other cabling; and other | ||||||
18 | data center infrastructure equipment and systems | ||||||
19 | necessary to operate qualified tangible personal | ||||||
20 | property, including fixtures; and component parts of | ||||||
21 | any of the foregoing, including installation, | ||||||
22 | maintenance, repair, refurbishment, and replacement of | ||||||
23 | qualified tangible personal property to generate, | ||||||
24 | transform, transmit, distribute, or manage electricity | ||||||
25 | necessary to operate qualified tangible personal | ||||||
26 | property; and all other tangible personal property |
| |||||||
| |||||||
1 | that is essential to the operations of a computer data | ||||||
2 | center. The term "qualified tangible personal | ||||||
3 | property" also includes building materials physically | ||||||
4 | incorporated in to the qualifying data center. To | ||||||
5 | document the exemption allowed under this Section, the | ||||||
6 | retailer must obtain from the purchaser a copy of the | ||||||
7 | certificate of eligibility issued by the Department of | ||||||
8 | Commerce and Economic Opportunity. | ||||||
9 | This item (44) is exempt from the provisions of Section | ||||||
10 | 2-70. | ||||||
11 | (45) Beginning January 1, 2020 and through December 31, | ||||||
12 | 2020, sales of tangible personal property made by a | ||||||
13 | marketplace seller over a marketplace for which tax is due | ||||||
14 | under this Act but for which use tax has been collected and | ||||||
15 | remitted to the Department by a marketplace facilitator | ||||||
16 | under Section 2d of the Use Tax Act are exempt from tax | ||||||
17 | under this Act. A marketplace seller claiming this | ||||||
18 | exemption shall maintain books and records demonstrating | ||||||
19 | that the use tax on such sales has been collected and | ||||||
20 | remitted by a marketplace facilitator. Marketplace sellers | ||||||
21 | that have properly remitted tax under this Act on such | ||||||
22 | sales may file a claim for credit as provided in Section 6 | ||||||
23 | of this Act. No claim is allowed, however, for such taxes | ||||||
24 | for which a credit or refund has been issued to the | ||||||
25 | marketplace facilitator under the Use Tax Act, or for which | ||||||
26 | the marketplace facilitator has filed a claim for credit or |
| |||||||
| |||||||
1 | refund under the Use Tax Act. | ||||||
2 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
3 | 100-437, eff. 1-1-18; 100-594, eff. 6-29-18; 100-863, eff. | ||||||
4 | 8-14-18; 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19; 101-81, | ||||||
5 | eff. 7-12-19; 101-629, eff. 2-5-20.)
| ||||||
6 | (35 ILCS 120/3) (from Ch. 120, par. 442)
| ||||||
7 | Sec. 3. Except as provided in this Section, on or before | ||||||
8 | the twentieth
day of each calendar month, every person engaged | ||||||
9 | in the business of
selling tangible personal property at retail | ||||||
10 | in this State during the
preceding calendar month shall file a | ||||||
11 | return with the Department, stating: | ||||||
12 | 1. The name of the seller; | ||||||
13 | 2. His residence address and the address of his | ||||||
14 | principal place of
business and the address of the | ||||||
15 | principal place of business (if that is
a different | ||||||
16 | address) from which he engages in the business of selling
| ||||||
17 | tangible personal property at retail in this State; | ||||||
18 | 3. Total amount of receipts received by him during the | ||||||
19 | preceding
calendar month or quarter, as the case may be, | ||||||
20 | from sales of tangible
personal property, and from services | ||||||
21 | furnished, by him during such
preceding calendar month or | ||||||
22 | quarter; | ||||||
23 | 4. Total amount received by him during the preceding | ||||||
24 | calendar month or
quarter on charge and time sales of | ||||||
25 | tangible personal property, and from
services furnished, |
| |||||||
| |||||||
1 | by him prior to the month or quarter for which the return
| ||||||
2 | is filed; | ||||||
3 | 5. Deductions allowed by law; | ||||||
4 | 6. Gross receipts which were received by him during the | ||||||
5 | preceding
calendar month or quarter and upon the basis of | ||||||
6 | which the tax is imposed; | ||||||
7 | 7. The amount of credit provided in Section 2d of this | ||||||
8 | Act; | ||||||
9 | 8. The amount of tax due; | ||||||
10 | 9. The signature of the taxpayer; and | ||||||
11 | 10. Such other reasonable information as the | ||||||
12 | Department may require. | ||||||
13 | On and after January 1, 2018, except for returns for motor | ||||||
14 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
15 | to be registered with an agency of this State, with respect to | ||||||
16 | retailers whose annual gross receipts average $20,000 or more, | ||||||
17 | all returns required to be filed pursuant to this Act shall be | ||||||
18 | filed electronically. Retailers who demonstrate that they do | ||||||
19 | not have access to the Internet or demonstrate hardship in | ||||||
20 | filing electronically may petition the Department to waive the | ||||||
21 | electronic filing requirement. | ||||||
22 | If a taxpayer fails to sign a return within 30 days after | ||||||
23 | the proper notice
and demand for signature by the Department, | ||||||
24 | the return shall be considered
valid and any amount shown to be | ||||||
25 | due on the return shall be deemed assessed. | ||||||
26 | Each return shall be accompanied by the statement of |
| |||||||
| |||||||
1 | prepaid tax issued
pursuant to Section 2e for which credit is | ||||||
2 | claimed. | ||||||
3 | Prior to October 1, 2003, and on and after September 1, | ||||||
4 | 2004 a retailer may accept a Manufacturer's Purchase
Credit
| ||||||
5 | certification from a purchaser in satisfaction of Use Tax
as | ||||||
6 | provided in Section 3-85 of the Use Tax Act if the purchaser | ||||||
7 | provides the
appropriate documentation as required by Section | ||||||
8 | 3-85
of the Use Tax Act. A Manufacturer's Purchase Credit
| ||||||
9 | certification, accepted by a retailer prior to October 1, 2003 | ||||||
10 | and on and after September 1, 2004 as provided
in
Section 3-85 | ||||||
11 | of the Use Tax Act, may be used by that retailer to
satisfy | ||||||
12 | Retailers' Occupation Tax liability in the amount claimed in
| ||||||
13 | the certification, not to exceed 6.25% of the receipts
subject | ||||||
14 | to tax from a qualifying purchase. A Manufacturer's Purchase | ||||||
15 | Credit
reported on any original or amended return
filed under
| ||||||
16 | this Act after October 20, 2003 for reporting periods prior to | ||||||
17 | September 1, 2004 shall be disallowed. Manufacturer's | ||||||
18 | Purchaser Credit reported on annual returns due on or after | ||||||
19 | January 1, 2005 will be disallowed for periods prior to | ||||||
20 | September 1, 2004. No Manufacturer's
Purchase Credit may be | ||||||
21 | used after September 30, 2003 through August 31, 2004 to
| ||||||
22 | satisfy any
tax liability imposed under this Act, including any | ||||||
23 | audit liability. | ||||||
24 | The Department may require returns to be filed on a | ||||||
25 | quarterly basis.
If so required, a return for each calendar | ||||||
26 | quarter shall be filed on or
before the twentieth day of the |
| |||||||
| |||||||
1 | calendar month following the end of such
calendar quarter. The | ||||||
2 | taxpayer shall also file a return with the
Department for each | ||||||
3 | of the first two months of each calendar quarter, on or
before | ||||||
4 | the twentieth day of the following calendar month, stating: | ||||||
5 | 1. The name of the seller; | ||||||
6 | 2. The address of the principal place of business from | ||||||
7 | which he engages
in the business of selling tangible | ||||||
8 | personal property at retail in this State; | ||||||
9 | 3. The total amount of taxable receipts received by him | ||||||
10 | during the
preceding calendar month from sales of tangible | ||||||
11 | personal property by him
during such preceding calendar | ||||||
12 | month, including receipts from charge and
time sales, but | ||||||
13 | less all deductions allowed by law; | ||||||
14 | 4. The amount of credit provided in Section 2d of this | ||||||
15 | Act; | ||||||
16 | 5. The amount of tax due; and | ||||||
17 | 6. Such other reasonable information as the Department | ||||||
18 | may
require. | ||||||
19 | Every person engaged in the business of selling aviation | ||||||
20 | fuel at retail in this State during the preceding calendar | ||||||
21 | month shall, instead of reporting and paying tax as otherwise | ||||||
22 | required by this Section, report and pay such tax on a separate | ||||||
23 | aviation fuel tax return. The requirements related to the | ||||||
24 | return shall be as otherwise provided in this Section. | ||||||
25 | Notwithstanding any other provisions of this Act to the | ||||||
26 | contrary, retailers selling aviation fuel shall file all |
| |||||||
| |||||||
1 | aviation fuel tax returns and shall make all aviation fuel tax | ||||||
2 | payments by electronic means in the manner and form required by | ||||||
3 | the Department. For purposes of this Section, "aviation fuel" | ||||||
4 | means jet fuel and aviation gasoline. | ||||||
5 | Beginning on October 1, 2003, any person who is not a | ||||||
6 | licensed
distributor, importing distributor, or manufacturer, | ||||||
7 | as defined in the Liquor
Control Act of 1934, but is engaged in | ||||||
8 | the business of
selling, at retail, alcoholic liquor
shall file | ||||||
9 | a statement with the Department of Revenue, in a format
and at | ||||||
10 | a time prescribed by the Department, showing the total amount | ||||||
11 | paid for
alcoholic liquor purchased during the preceding month | ||||||
12 | and such other
information as is reasonably required by the | ||||||
13 | Department.
The Department may adopt rules to require
that this | ||||||
14 | statement be filed in an electronic or telephonic format. Such | ||||||
15 | rules
may provide for exceptions from the filing requirements | ||||||
16 | of this paragraph. For
the
purposes of this
paragraph, the term | ||||||
17 | "alcoholic liquor" shall have the meaning prescribed in the
| ||||||
18 | Liquor Control Act of 1934. | ||||||
19 | Beginning on October 1, 2003, every distributor, importing | ||||||
20 | distributor, and
manufacturer of alcoholic liquor as defined in | ||||||
21 | the Liquor Control Act of 1934,
shall file a
statement with the | ||||||
22 | Department of Revenue, no later than the 10th day of the
month | ||||||
23 | for the
preceding month during which transactions occurred, by | ||||||
24 | electronic means,
showing the
total amount of gross receipts | ||||||
25 | from the sale of alcoholic liquor sold or
distributed during
| ||||||
26 | the preceding month to purchasers; identifying the purchaser to |
| |||||||
| |||||||
1 | whom it was
sold or
distributed; the purchaser's tax | ||||||
2 | registration number; and such other
information
reasonably | ||||||
3 | required by the Department. A distributor, importing | ||||||
4 | distributor, or manufacturer of alcoholic liquor must | ||||||
5 | personally deliver, mail, or provide by electronic means to | ||||||
6 | each retailer listed on the monthly statement a report | ||||||
7 | containing a cumulative total of that distributor's, importing | ||||||
8 | distributor's, or manufacturer's total sales of alcoholic | ||||||
9 | liquor to that retailer no later than the 10th day of the month | ||||||
10 | for the preceding month during which the transaction occurred. | ||||||
11 | The distributor, importing distributor, or manufacturer shall | ||||||
12 | notify the retailer as to the method by which the distributor, | ||||||
13 | importing distributor, or manufacturer will provide the sales | ||||||
14 | information. If the retailer is unable to receive the sales | ||||||
15 | information by electronic means, the distributor, importing | ||||||
16 | distributor, or manufacturer shall furnish the sales | ||||||
17 | information by personal delivery or by mail. For purposes of | ||||||
18 | this paragraph, the term "electronic means" includes, but is | ||||||
19 | not limited to, the use of a secure Internet website, e-mail, | ||||||
20 | or facsimile. | ||||||
21 | If a total amount of less than $1 is payable, refundable or | ||||||
22 | creditable,
such amount shall be disregarded if it is less than | ||||||
23 | 50 cents and shall be
increased to $1 if it is 50 cents or more. | ||||||
24 | Notwithstanding any other provision of this Act to the | ||||||
25 | contrary, retailers subject to tax on cannabis shall file all | ||||||
26 | cannabis tax returns and shall make all cannabis tax payments |
| |||||||
| |||||||
1 | by electronic means in the manner and form required by the | ||||||
2 | Department. | ||||||
3 | Beginning October 1, 1993,
a taxpayer who has an average | ||||||
4 | monthly tax liability of $150,000 or more shall
make all | ||||||
5 | payments required by rules of the
Department by electronic | ||||||
6 | funds transfer. Beginning October 1, 1994, a taxpayer
who has | ||||||
7 | an average monthly tax liability of $100,000 or more shall make | ||||||
8 | all
payments required by rules of the Department by electronic | ||||||
9 | funds transfer.
Beginning October 1, 1995, a taxpayer who has | ||||||
10 | an average monthly tax liability
of $50,000 or more shall make | ||||||
11 | all
payments required by rules of the Department by electronic | ||||||
12 | funds transfer.
Beginning October 1, 2000, a taxpayer who has | ||||||
13 | an annual tax liability of
$200,000 or more shall make all | ||||||
14 | payments required by rules of the Department by
electronic | ||||||
15 | funds transfer. The term "annual tax liability" shall be the | ||||||
16 | sum of
the taxpayer's liabilities under this Act, and under all | ||||||
17 | other State and local
occupation and use tax laws administered | ||||||
18 | by the Department, for the immediately
preceding calendar year.
| ||||||
19 | The term "average monthly tax liability" shall be the sum of | ||||||
20 | the
taxpayer's liabilities under this
Act, and under all other | ||||||
21 | State and local occupation and use tax
laws administered by the | ||||||
22 | Department, for the immediately preceding calendar
year | ||||||
23 | divided by 12.
Beginning on October 1, 2002, a taxpayer who has | ||||||
24 | a tax liability in the
amount set forth in subsection (b) of | ||||||
25 | Section 2505-210 of the Department of
Revenue Law shall make | ||||||
26 | all payments required by rules of the Department by
electronic |
| |||||||
| |||||||
1 | funds transfer. | ||||||
2 | Before August 1 of each year beginning in 1993, the | ||||||
3 | Department shall
notify all taxpayers required to make payments | ||||||
4 | by electronic funds
transfer. All taxpayers
required to make | ||||||
5 | payments by electronic funds transfer shall make those
payments | ||||||
6 | for
a minimum of one year beginning on October 1. | ||||||
7 | Any taxpayer not required to make payments by electronic | ||||||
8 | funds transfer may
make payments by electronic funds transfer | ||||||
9 | with
the permission of the Department. | ||||||
10 | All taxpayers required to make payment by electronic funds | ||||||
11 | transfer and
any taxpayers authorized to voluntarily make | ||||||
12 | payments by electronic funds
transfer shall make those payments | ||||||
13 | in the manner authorized by the Department. | ||||||
14 | The Department shall adopt such rules as are necessary to | ||||||
15 | effectuate a
program of electronic funds transfer and the | ||||||
16 | requirements of this Section. | ||||||
17 | Any amount which is required to be shown or reported on any | ||||||
18 | return or
other document under this Act shall, if such amount | ||||||
19 | is not a whole-dollar
amount, be increased to the nearest | ||||||
20 | whole-dollar amount in any case where
the fractional part of a | ||||||
21 | dollar is 50 cents or more, and decreased to the
nearest | ||||||
22 | whole-dollar amount where the fractional part of a dollar is | ||||||
23 | less
than 50 cents. | ||||||
24 | If the retailer is otherwise required to file a monthly | ||||||
25 | return and if the
retailer's average monthly tax liability to | ||||||
26 | the Department does not exceed
$200, the Department may |
| |||||||
| |||||||
1 | authorize his returns to be filed on a quarter
annual basis, | ||||||
2 | with the return for January, February and March of a given
year | ||||||
3 | being due by April 20 of such year; with the return for April, | ||||||
4 | May and
June of a given year being due by July 20 of such year; | ||||||
5 | with the return for
July, August and September of a given year | ||||||
6 | being due by October 20 of such
year, and with the return for | ||||||
7 | October, November and December of a given
year being due by | ||||||
8 | January 20 of the following year. | ||||||
9 | If the retailer is otherwise required to file a monthly or | ||||||
10 | quarterly
return and if the retailer's average monthly tax | ||||||
11 | liability with the
Department does not exceed $50, the | ||||||
12 | Department may authorize his returns to
be filed on an annual | ||||||
13 | basis, with the return for a given year being due by
January 20 | ||||||
14 | of the following year. | ||||||
15 | Such quarter annual and annual returns, as to form and | ||||||
16 | substance,
shall be subject to the same requirements as monthly | ||||||
17 | returns. | ||||||
18 | Notwithstanding any other provision in this Act concerning | ||||||
19 | the time
within which a retailer may file his return, in the | ||||||
20 | case of any retailer
who ceases to engage in a kind of business | ||||||
21 | which makes him responsible
for filing returns under this Act, | ||||||
22 | such retailer shall file a final
return under this Act with the | ||||||
23 | Department not more than one month after
discontinuing such | ||||||
24 | business. | ||||||
25 | Where the same person has more than one business registered | ||||||
26 | with the
Department under separate registrations under this |
| |||||||
| |||||||
1 | Act, such person may
not file each return that is due as a | ||||||
2 | single return covering all such
registered businesses, but | ||||||
3 | shall file separate returns for each such
registered business. | ||||||
4 | In addition, with respect to motor vehicles, watercraft,
| ||||||
5 | aircraft, and trailers that are required to be registered with | ||||||
6 | an agency of
this State, except as otherwise provided in this | ||||||
7 | Section, every
retailer selling this kind of tangible personal | ||||||
8 | property shall file,
with the Department, upon a form to be | ||||||
9 | prescribed and supplied by the
Department, a separate return | ||||||
10 | for each such item of tangible personal
property which the | ||||||
11 | retailer sells, except that if, in the same
transaction, (i) a | ||||||
12 | retailer of aircraft, watercraft, motor vehicles or
trailers | ||||||
13 | transfers more than one aircraft, watercraft, motor
vehicle or | ||||||
14 | trailer to another aircraft, watercraft, motor vehicle
| ||||||
15 | retailer or trailer retailer for the purpose of resale
or (ii) | ||||||
16 | a retailer of aircraft, watercraft, motor vehicles, or trailers
| ||||||
17 | transfers more than one aircraft, watercraft, motor vehicle, or | ||||||
18 | trailer to a
purchaser for use as a qualifying rolling stock as | ||||||
19 | provided in Section 2-5 of
this Act, then
that seller may | ||||||
20 | report the transfer of all aircraft,
watercraft, motor vehicles | ||||||
21 | or trailers involved in that transaction to the
Department on | ||||||
22 | the same uniform invoice-transaction reporting return form. | ||||||
23 | For
purposes of this Section, "watercraft" means a Class 2, | ||||||
24 | Class 3, or Class 4
watercraft as defined in Section 3-2 of the | ||||||
25 | Boat Registration and Safety Act, a
personal watercraft, or any | ||||||
26 | boat equipped with an inboard motor. |
| |||||||
| |||||||
1 | In addition, with respect to motor vehicles, watercraft, | ||||||
2 | aircraft, and trailers that are required to be registered with | ||||||
3 | an agency of this State, every person who is engaged in the | ||||||
4 | business of leasing or renting such items and who, in | ||||||
5 | connection with such business, sells any such item to a | ||||||
6 | retailer for the purpose of resale is, notwithstanding any | ||||||
7 | other provision of this Section to the contrary, authorized to | ||||||
8 | meet the return-filing requirement of this Act by reporting the | ||||||
9 | transfer of all the aircraft, watercraft, motor vehicles, or | ||||||
10 | trailers transferred for resale during a month to the | ||||||
11 | Department on the same uniform invoice-transaction reporting | ||||||
12 | return form on or before the 20th of the month following the | ||||||
13 | month in which the transfer takes place. Notwithstanding any | ||||||
14 | other provision of this Act to the contrary, all returns filed | ||||||
15 | under this paragraph must be filed by electronic means in the | ||||||
16 | manner and form as required by the Department. | ||||||
17 | Any retailer who sells only motor vehicles, watercraft,
| ||||||
18 | aircraft, or trailers that are required to be registered with | ||||||
19 | an agency of
this State, so that all
retailers' occupation tax | ||||||
20 | liability is required to be reported, and is
reported, on such | ||||||
21 | transaction reporting returns and who is not otherwise
required | ||||||
22 | to file monthly or quarterly returns, need not file monthly or
| ||||||
23 | quarterly returns. However, those retailers shall be required | ||||||
24 | to
file returns on an annual basis. | ||||||
25 | The transaction reporting return, in the case of motor | ||||||
26 | vehicles
or trailers that are required to be registered with an |
| |||||||
| |||||||
1 | agency of this
State, shall
be the same document as the Uniform | ||||||
2 | Invoice referred to in Section 5-402
of the Illinois Vehicle | ||||||
3 | Code and must show the name and address of the
seller; the name | ||||||
4 | and address of the purchaser; the amount of the selling
price | ||||||
5 | including the amount allowed by the retailer for traded-in
| ||||||
6 | property, if any; the amount allowed by the retailer for the | ||||||
7 | traded-in
tangible personal property, if any, to the extent to | ||||||
8 | which Section 1 of
this Act allows an exemption for the value | ||||||
9 | of traded-in property; the
balance payable after deducting such | ||||||
10 | trade-in allowance from the total
selling price; the amount of | ||||||
11 | tax due from the retailer with respect to
such transaction; the | ||||||
12 | amount of tax collected from the purchaser by the
retailer on | ||||||
13 | such transaction (or satisfactory evidence that such tax is
not | ||||||
14 | due in that particular instance, if that is claimed to be the | ||||||
15 | fact);
the place and date of the sale; a sufficient | ||||||
16 | identification of the
property sold; such other information as | ||||||
17 | is required in Section 5-402 of
the Illinois Vehicle Code, and | ||||||
18 | such other information as the Department
may reasonably | ||||||
19 | require. | ||||||
20 | The transaction reporting return in the case of watercraft
| ||||||
21 | or aircraft must show
the name and address of the seller; the | ||||||
22 | name and address of the
purchaser; the amount of the selling | ||||||
23 | price including the amount allowed
by the retailer for | ||||||
24 | traded-in property, if any; the amount allowed by
the retailer | ||||||
25 | for the traded-in tangible personal property, if any, to
the | ||||||
26 | extent to which Section 1 of this Act allows an exemption for |
| |||||||
| |||||||
1 | the
value of traded-in property; the balance payable after | ||||||
2 | deducting such
trade-in allowance from the total selling price; | ||||||
3 | the amount of tax due
from the retailer with respect to such | ||||||
4 | transaction; the amount of tax
collected from the purchaser by | ||||||
5 | the retailer on such transaction (or
satisfactory evidence that | ||||||
6 | such tax is not due in that particular
instance, if that is | ||||||
7 | claimed to be the fact); the place and date of the
sale, a | ||||||
8 | sufficient identification of the property sold, and such other
| ||||||
9 | information as the Department may reasonably require. | ||||||
10 | Such transaction reporting return shall be filed not later | ||||||
11 | than 20
days after the day of delivery of the item that is | ||||||
12 | being sold, but may
be filed by the retailer at any time sooner | ||||||
13 | than that if he chooses to
do so. The transaction reporting | ||||||
14 | return and tax remittance or proof of
exemption from the | ||||||
15 | Illinois use tax may be transmitted to the Department
by way of | ||||||
16 | the State agency with which, or State officer with whom the
| ||||||
17 | tangible personal property must be titled or registered (if | ||||||
18 | titling or
registration is required) if the Department and such | ||||||
19 | agency or State
officer determine that this procedure will | ||||||
20 | expedite the processing of
applications for title or | ||||||
21 | registration. | ||||||
22 | With each such transaction reporting return, the retailer | ||||||
23 | shall remit
the proper amount of tax due (or shall submit | ||||||
24 | satisfactory evidence that
the sale is not taxable if that is | ||||||
25 | the case), to the Department or its
agents, whereupon the | ||||||
26 | Department shall issue, in the purchaser's name, a
use tax |
| |||||||
| |||||||
1 | receipt (or a certificate of exemption if the Department is
| ||||||
2 | satisfied that the particular sale is tax exempt) which such | ||||||
3 | purchaser
may submit to the agency with which, or State officer | ||||||
4 | with whom, he must
title or register the tangible personal | ||||||
5 | property that is involved (if
titling or registration is | ||||||
6 | required) in support of such purchaser's
application for an | ||||||
7 | Illinois certificate or other evidence of title or
registration | ||||||
8 | to such tangible personal property. | ||||||
9 | No retailer's failure or refusal to remit tax under this | ||||||
10 | Act
precludes a user, who has paid the proper tax to the | ||||||
11 | retailer, from
obtaining his certificate of title or other | ||||||
12 | evidence of title or
registration (if titling or registration | ||||||
13 | is required) upon satisfying
the Department that such user has | ||||||
14 | paid the proper tax (if tax is due) to
the retailer. The | ||||||
15 | Department shall adopt appropriate rules to carry out
the | ||||||
16 | mandate of this paragraph. | ||||||
17 | If the user who would otherwise pay tax to the retailer | ||||||
18 | wants the
transaction reporting return filed and the payment of | ||||||
19 | the tax or proof
of exemption made to the Department before the | ||||||
20 | retailer is willing to
take these actions and such user has not | ||||||
21 | paid the tax to the retailer,
such user may certify to the fact | ||||||
22 | of such delay by the retailer and may
(upon the Department | ||||||
23 | being satisfied of the truth of such certification)
transmit | ||||||
24 | the information required by the transaction reporting return
| ||||||
25 | and the remittance for tax or proof of exemption directly to | ||||||
26 | the
Department and obtain his tax receipt or exemption |
| |||||||
| |||||||
1 | determination, in
which event the transaction reporting return | ||||||
2 | and tax remittance (if a
tax payment was required) shall be | ||||||
3 | credited by the Department to the
proper retailer's account | ||||||
4 | with the Department, but without the 2.1% or 1.75%
discount | ||||||
5 | provided for in this Section being allowed. When the user pays
| ||||||
6 | the tax directly to the Department, he shall pay the tax in the | ||||||
7 | same
amount and in the same form in which it would be remitted | ||||||
8 | if the tax had
been remitted to the Department by the retailer. | ||||||
9 | Refunds made by the seller during the preceding return | ||||||
10 | period to
purchasers, on account of tangible personal property | ||||||
11 | returned to the
seller, shall be allowed as a deduction under | ||||||
12 | subdivision 5 of his monthly
or quarterly return, as the case | ||||||
13 | may be, in case the
seller had theretofore included the | ||||||
14 | receipts from the sale of such
tangible personal property in a | ||||||
15 | return filed by him and had paid the tax
imposed by this Act | ||||||
16 | with respect to such receipts. | ||||||
17 | Where the seller is a corporation, the return filed on | ||||||
18 | behalf of such
corporation shall be signed by the president, | ||||||
19 | vice-president, secretary
or treasurer or by the properly | ||||||
20 | accredited agent of such corporation. | ||||||
21 | Where the seller is a limited liability company, the return | ||||||
22 | filed on behalf
of the limited liability company shall be | ||||||
23 | signed by a manager, member, or
properly accredited agent of | ||||||
24 | the limited liability company. | ||||||
25 | Except as provided in this Section, the retailer filing the | ||||||
26 | return
under this Section shall, at the time of filing such |
| |||||||
| |||||||
1 | return, pay to the
Department the amount of tax imposed by this | ||||||
2 | Act less a discount of 2.1%
prior to January 1, 1990 and 1.75% | ||||||
3 | on and after January 1, 1990, or $5 per
calendar year, | ||||||
4 | whichever is greater, which is allowed to
reimburse the | ||||||
5 | retailer for the expenses incurred in keeping records,
| ||||||
6 | preparing and filing returns, remitting the tax and supplying | ||||||
7 | data to
the Department on request. On and after January 1, | ||||||
8 | 2021, a certified service provider, as defined in the Leveling | ||||||
9 | the Playing Field for Illinois Retail Act, filing the return | ||||||
10 | under this Section on behalf of a remote retailer shall, at the | ||||||
11 | time of such return, pay to the Department the amount of tax | ||||||
12 | imposed by this Act less a discount of 1.75%. A remote retailer | ||||||
13 | using a certified service provider to file a return on its | ||||||
14 | behalf, as provided in the Leveling the Playing Field for | ||||||
15 | Illinois Retail Act, is not eligible for the discount. The | ||||||
16 | discount under this Section is not allowed for the 1.25% | ||||||
17 | portion of taxes paid on aviation fuel that is subject to the | ||||||
18 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
19 | 47133. Any prepayment made pursuant to Section 2d
of this Act | ||||||
20 | shall be included in the amount on which such
2.1% or 1.75% | ||||||
21 | discount is computed. In the case of retailers who report
and | ||||||
22 | pay the tax on a transaction by transaction basis, as provided | ||||||
23 | in this
Section, such discount shall be taken with each such | ||||||
24 | tax remittance
instead of when such retailer files his periodic | ||||||
25 | return. The discount allowed under this Section is allowed only | ||||||
26 | for returns that are filed in the manner required by this Act. |
| |||||||
| |||||||
1 | The Department may disallow the discount for retailers whose | ||||||
2 | certificate of registration is revoked at the time the return | ||||||
3 | is filed, but only if the Department's decision to revoke the | ||||||
4 | certificate of registration has become final. | ||||||
5 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
6 | tax liability
to the Department
under this Act, the Use Tax | ||||||
7 | Act, the Service Occupation Tax
Act, and the Service Use Tax | ||||||
8 | Act, excluding any liability for prepaid sales
tax to be | ||||||
9 | remitted in accordance with Section 2d of this Act, was
$10,000
| ||||||
10 | or more during the preceding 4 complete calendar quarters, he | ||||||
11 | shall file a
return with the Department each month by the 20th | ||||||
12 | day of the month next
following the month during which such tax | ||||||
13 | liability is incurred and shall
make payments to the Department | ||||||
14 | on or before the 7th, 15th, 22nd and last
day of the month | ||||||
15 | during which such liability is incurred.
On and after October | ||||||
16 | 1, 2000, if the taxpayer's average monthly tax liability
to the | ||||||
17 | Department under this Act, the Use Tax Act, the Service | ||||||
18 | Occupation Tax
Act, and the Service Use Tax Act, excluding any | ||||||
19 | liability for prepaid sales tax
to be remitted in accordance | ||||||
20 | with Section 2d of this Act, was $20,000 or more
during the | ||||||
21 | preceding 4 complete calendar quarters, he shall file a return | ||||||
22 | with
the Department each month by the 20th day of the month | ||||||
23 | next following the month
during which such tax liability is | ||||||
24 | incurred and shall make payment to the
Department on or before | ||||||
25 | the 7th, 15th, 22nd and last day of the month during
which such | ||||||
26 | liability is incurred.
If the month
during which such tax |
| |||||||
| |||||||
1 | liability is incurred began prior to January 1, 1985,
each | ||||||
2 | payment shall be in an amount equal to 1/4 of the taxpayer's | ||||||
3 | actual
liability for the month or an amount set by the | ||||||
4 | Department not to exceed
1/4 of the average monthly liability | ||||||
5 | of the taxpayer to the Department for
the preceding 4 complete | ||||||
6 | calendar quarters (excluding the month of highest
liability and | ||||||
7 | the month of lowest liability in such 4 quarter period). If
the | ||||||
8 | month during which such tax liability is incurred begins on or | ||||||
9 | after
January 1, 1985 and prior to January 1, 1987, each | ||||||
10 | payment shall be in an
amount equal to 22.5% of the taxpayer's | ||||||
11 | actual liability for the month or
27.5% of the taxpayer's | ||||||
12 | liability for the same calendar
month of the preceding year. If | ||||||
13 | the month during which such tax
liability is incurred begins on | ||||||
14 | or after January 1, 1987 and prior to
January 1, 1988, each | ||||||
15 | payment shall be in an amount equal to 22.5% of the
taxpayer's | ||||||
16 | actual liability for the month or 26.25% of the taxpayer's
| ||||||
17 | liability for the same calendar month of the preceding year. If | ||||||
18 | the month
during which such tax liability is incurred begins on | ||||||
19 | or after January 1,
1988, and prior to January 1, 1989, or | ||||||
20 | begins on or after January 1, 1996, each
payment shall be in an | ||||||
21 | amount
equal to 22.5% of the taxpayer's actual liability for | ||||||
22 | the month or 25% of
the taxpayer's liability for the same | ||||||
23 | calendar month of the preceding year. If
the month during which | ||||||
24 | such tax liability is incurred begins on or after
January 1, | ||||||
25 | 1989, and prior to January 1, 1996, each payment shall be in an
| ||||||
26 | amount equal to 22.5% of the
taxpayer's actual liability for |
| |||||||
| |||||||
1 | the month or 25% of the taxpayer's
liability for the same | ||||||
2 | calendar month of the preceding year or 100% of the
taxpayer's | ||||||
3 | actual liability for the quarter monthly reporting period. The
| ||||||
4 | amount of such quarter monthly payments shall be credited | ||||||
5 | against
the final tax liability of the taxpayer's return for | ||||||
6 | that month. Before
October 1, 2000, once
applicable, the | ||||||
7 | requirement of the making of quarter monthly payments to
the | ||||||
8 | Department by taxpayers having an average monthly tax liability | ||||||
9 | of
$10,000 or more as determined in the manner provided above
| ||||||
10 | shall continue
until such taxpayer's average monthly liability | ||||||
11 | to the Department during
the preceding 4 complete calendar | ||||||
12 | quarters (excluding the month of highest
liability and the | ||||||
13 | month of lowest liability) is less than
$9,000, or until
such | ||||||
14 | taxpayer's average monthly liability to the Department as | ||||||
15 | computed for
each calendar quarter of the 4 preceding complete | ||||||
16 | calendar quarter period
is less than $10,000. However, if a | ||||||
17 | taxpayer can show the
Department that
a substantial change in | ||||||
18 | the taxpayer's business has occurred which causes
the taxpayer | ||||||
19 | to anticipate that his average monthly tax liability for the
| ||||||
20 | reasonably foreseeable future will fall below the $10,000 | ||||||
21 | threshold
stated above, then
such taxpayer
may petition the | ||||||
22 | Department for a change in such taxpayer's reporting
status. On | ||||||
23 | and after October 1, 2000, once applicable, the requirement of
| ||||||
24 | the making of quarter monthly payments to the Department by | ||||||
25 | taxpayers having an
average monthly tax liability of $20,000 or | ||||||
26 | more as determined in the manner
provided above shall continue |
| |||||||
| |||||||
1 | until such taxpayer's average monthly liability
to the | ||||||
2 | Department during the preceding 4 complete calendar quarters | ||||||
3 | (excluding
the month of highest liability and the month of | ||||||
4 | lowest liability) is less than
$19,000 or until such taxpayer's | ||||||
5 | average monthly liability to the Department as
computed for | ||||||
6 | each calendar quarter of the 4 preceding complete calendar | ||||||
7 | quarter
period is less than $20,000. However, if a taxpayer can | ||||||
8 | show the Department
that a substantial change in the taxpayer's | ||||||
9 | business has occurred which causes
the taxpayer to anticipate | ||||||
10 | that his average monthly tax liability for the
reasonably | ||||||
11 | foreseeable future will fall below the $20,000 threshold stated
| ||||||
12 | above, then such taxpayer may petition the Department for a | ||||||
13 | change in such
taxpayer's reporting status. The Department | ||||||
14 | shall change such taxpayer's
reporting status
unless it finds | ||||||
15 | that such change is seasonal in nature and not likely to be
| ||||||
16 | long term. If any such quarter monthly payment is not paid at | ||||||
17 | the time or
in the amount required by this Section, then the | ||||||
18 | taxpayer shall be liable for
penalties and interest on the | ||||||
19 | difference
between the minimum amount due as a payment and the | ||||||
20 | amount of such quarter
monthly payment actually and timely | ||||||
21 | paid, except insofar as the
taxpayer has previously made | ||||||
22 | payments for that month to the Department in
excess of the | ||||||
23 | minimum payments previously due as provided in this Section.
| ||||||
24 | The Department shall make reasonable rules and regulations to | ||||||
25 | govern the
quarter monthly payment amount and quarter monthly | ||||||
26 | payment dates for
taxpayers who file on other than a calendar |
| |||||||
| |||||||
1 | monthly basis. | ||||||
2 | The provisions of this paragraph apply before October 1, | ||||||
3 | 2001.
Without regard to whether a taxpayer is required to make | ||||||
4 | quarter monthly
payments as specified above, any taxpayer who | ||||||
5 | is required by Section 2d
of this Act to collect and remit | ||||||
6 | prepaid taxes and has collected prepaid
taxes which average in | ||||||
7 | excess of $25,000 per month during the preceding
2 complete | ||||||
8 | calendar quarters, shall file a return with the Department as
| ||||||
9 | required by Section 2f and shall make payments to the | ||||||
10 | Department on or before
the 7th, 15th, 22nd and last day of the | ||||||
11 | month during which such liability
is incurred. If the month | ||||||
12 | during which such tax liability is incurred
began prior to | ||||||
13 | September 1, 1985 (the effective date of Public Act 84-221), | ||||||
14 | each
payment shall be in an amount not less than 22.5% of the | ||||||
15 | taxpayer's actual
liability under Section 2d. If the month | ||||||
16 | during which such tax liability
is incurred begins on or after | ||||||
17 | January 1, 1986, each payment shall be in an
amount equal to | ||||||
18 | 22.5% of the taxpayer's actual liability for the month or
27.5% | ||||||
19 | of the taxpayer's liability for the same calendar month of the
| ||||||
20 | preceding calendar year. If the month during which such tax | ||||||
21 | liability is
incurred begins on or after January 1, 1987, each | ||||||
22 | payment shall be in an
amount equal to 22.5% of the taxpayer's | ||||||
23 | actual liability for the month or
26.25% of the taxpayer's | ||||||
24 | liability for the same calendar month of the
preceding year. | ||||||
25 | The amount of such quarter monthly payments shall be
credited | ||||||
26 | against the final tax liability of the taxpayer's return for |
| |||||||
| |||||||
1 | that
month filed under this Section or Section 2f, as the case | ||||||
2 | may be. Once
applicable, the requirement of the making of | ||||||
3 | quarter monthly payments to
the Department pursuant to this | ||||||
4 | paragraph shall continue until such
taxpayer's average monthly | ||||||
5 | prepaid tax collections during the preceding 2
complete | ||||||
6 | calendar quarters is $25,000 or less. If any such quarter | ||||||
7 | monthly
payment is not paid at the time or in the amount | ||||||
8 | required, the taxpayer
shall be liable for penalties and | ||||||
9 | interest on such difference, except
insofar as the taxpayer has | ||||||
10 | previously made payments for that month in
excess of the | ||||||
11 | minimum payments previously due. | ||||||
12 | The provisions of this paragraph apply on and after October | ||||||
13 | 1, 2001.
Without regard to whether a taxpayer is required to | ||||||
14 | make quarter monthly
payments as specified above, any taxpayer | ||||||
15 | who is required by Section 2d of this
Act to collect and remit | ||||||
16 | prepaid taxes and has collected prepaid taxes that
average in | ||||||
17 | excess of $20,000 per month during the preceding 4 complete | ||||||
18 | calendar
quarters shall file a return with the Department as | ||||||
19 | required by Section 2f
and shall make payments to the | ||||||
20 | Department on or before the 7th, 15th, 22nd and
last day of the | ||||||
21 | month during which the liability is incurred. Each payment
| ||||||
22 | shall be in an amount equal to 22.5% of the taxpayer's actual | ||||||
23 | liability for the
month or 25% of the taxpayer's liability for | ||||||
24 | the same calendar month of the
preceding year. The amount of | ||||||
25 | the quarter monthly payments shall be credited
against the | ||||||
26 | final tax liability of the taxpayer's return for that month |
| |||||||
| |||||||
1 | filed
under this Section or Section 2f, as the case may be. | ||||||
2 | Once applicable, the
requirement of the making of quarter | ||||||
3 | monthly payments to the Department
pursuant to this paragraph | ||||||
4 | shall continue until the taxpayer's average monthly
prepaid tax | ||||||
5 | collections during the preceding 4 complete calendar quarters
| ||||||
6 | (excluding the month of highest liability and the month of | ||||||
7 | lowest liability) is
less than $19,000 or until such taxpayer's | ||||||
8 | average monthly liability to the
Department as computed for | ||||||
9 | each calendar quarter of the 4 preceding complete
calendar | ||||||
10 | quarters is less than $20,000. If any such quarter monthly | ||||||
11 | payment is
not paid at the time or in the amount required, the | ||||||
12 | taxpayer shall be liable
for penalties and interest on such | ||||||
13 | difference, except insofar as the taxpayer
has previously made | ||||||
14 | payments for that month in excess of the minimum payments
| ||||||
15 | previously due. | ||||||
16 | If any payment provided for in this Section exceeds
the | ||||||
17 | taxpayer's liabilities under this Act, the Use Tax Act, the | ||||||
18 | Service
Occupation Tax Act and the Service Use Tax Act, as | ||||||
19 | shown on an original
monthly return, the Department shall, if | ||||||
20 | requested by the taxpayer, issue to
the taxpayer a credit | ||||||
21 | memorandum no later than 30 days after the date of
payment. The | ||||||
22 | credit evidenced by such credit memorandum may
be assigned by | ||||||
23 | the taxpayer to a similar taxpayer under this Act, the
Use Tax | ||||||
24 | Act, the Service Occupation Tax Act or the Service Use Tax Act, | ||||||
25 | in
accordance with reasonable rules and regulations to be | ||||||
26 | prescribed by the
Department. If no such request is made, the |
| |||||||
| |||||||
1 | taxpayer may credit such excess
payment against tax liability | ||||||
2 | subsequently to be remitted to the Department
under this Act, | ||||||
3 | the Use Tax Act, the Service Occupation Tax Act or the
Service | ||||||
4 | Use Tax Act, in accordance with reasonable rules and | ||||||
5 | regulations
prescribed by the Department. If the Department | ||||||
6 | subsequently determined
that all or any part of the credit | ||||||
7 | taken was not actually due to the
taxpayer, the taxpayer's 2.1% | ||||||
8 | and 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% | ||||||
9 | of the difference between the credit taken and that
actually | ||||||
10 | due, and that taxpayer shall be liable for penalties and | ||||||
11 | interest
on such difference. | ||||||
12 | If a retailer of motor fuel is entitled to a credit under | ||||||
13 | Section 2d of
this Act which exceeds the taxpayer's liability | ||||||
14 | to the Department under
this Act for the month which the | ||||||
15 | taxpayer is filing a return, the
Department shall issue the | ||||||
16 | taxpayer a credit memorandum for the excess. | ||||||
17 | Beginning January 1, 1990, each month the Department shall | ||||||
18 | pay into
the Local Government Tax Fund, a special fund in the | ||||||
19 | State treasury which
is hereby created, the net revenue | ||||||
20 | realized for the preceding month from
the 1% tax imposed under | ||||||
21 | this Act. | ||||||
22 | Beginning January 1, 1990, each month the Department shall | ||||||
23 | pay into
the County and Mass Transit District Fund, a special | ||||||
24 | fund in the State
treasury which is hereby created, 4% of the | ||||||
25 | net revenue realized
for the preceding month from the 6.25% | ||||||
26 | general rate other than aviation fuel sold on or after December |
| |||||||
| |||||||
1 | 1, 2019. This exception for aviation fuel only applies for so | ||||||
2 | long as the revenue use requirements of 49 U.S.C. 47107(b) and | ||||||
3 | 49 U.S.C. 47133 are binding on the State. | ||||||
4 | Beginning August 1, 2000, each
month the Department shall | ||||||
5 | pay into the
County and Mass Transit District Fund 20% of the | ||||||
6 | net revenue realized for the
preceding month from the 1.25% | ||||||
7 | rate on the selling price of motor fuel and
gasohol. Beginning | ||||||
8 | September 1, 2010, each month the Department shall pay into the | ||||||
9 | County and Mass Transit District Fund 20% of the net revenue | ||||||
10 | realized for the preceding month from the 1.25% rate on the | ||||||
11 | selling price of sales tax holiday items. | ||||||
12 | Beginning January 1, 1990, each month the Department shall | ||||||
13 | pay into
the Local Government Tax Fund 16% of the net revenue | ||||||
14 | realized for the
preceding month from the 6.25% general rate on | ||||||
15 | the selling price of
tangible personal property other than | ||||||
16 | aviation fuel sold on or after December 1, 2019. This exception | ||||||
17 | for aviation fuel only applies for so long as the revenue use | ||||||
18 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
19 | binding on the State. | ||||||
20 | For aviation fuel sold on or after December 1, 2019, each | ||||||
21 | month the Department shall pay into the State Aviation Program | ||||||
22 | Fund 20% of the net revenue realized for the preceding month | ||||||
23 | from the 6.25% general rate on the selling price of aviation | ||||||
24 | fuel, less an amount estimated by the Department to be required | ||||||
25 | for refunds of the 20% portion of the tax on aviation fuel | ||||||
26 | under this Act, which amount shall be deposited into the |
| |||||||
| |||||||
1 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
2 | pay moneys into the State Aviation Program Fund and the | ||||||
3 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
4 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
5 | U.S.C. 47133 are binding on the State. | ||||||
6 | Beginning August 1, 2000, each
month the Department shall | ||||||
7 | pay into the
Local Government Tax Fund 80% of the net revenue | ||||||
8 | realized for the preceding
month from the 1.25% rate on the | ||||||
9 | selling price of motor fuel and gasohol. Beginning September 1, | ||||||
10 | 2010, each month the Department shall pay into the Local | ||||||
11 | Government Tax Fund 80% of the net revenue realized for the | ||||||
12 | preceding month from the 1.25% rate on the selling price of | ||||||
13 | sales tax holiday items. | ||||||
14 | Beginning October 1, 2009, each month the Department shall | ||||||
15 | pay into the Capital Projects Fund an amount that is equal to | ||||||
16 | an amount estimated by the Department to represent 80% of the | ||||||
17 | net revenue realized for the preceding month from the sale of | ||||||
18 | candy, grooming and hygiene products, and soft drinks that had | ||||||
19 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
20 | are now taxed at 6.25%. | ||||||
21 | Beginning July 1, 2011, each
month the Department shall pay | ||||||
22 | into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
23 | realized for the
preceding month from the 6.25% general rate on | ||||||
24 | the selling price of sorbents used in Illinois in the process | ||||||
25 | of sorbent injection as used to comply with the Environmental | ||||||
26 | Protection Act or the federal Clean Air Act, but the total |
| |||||||
| |||||||
1 | payment into the Clean Air Act Permit Fund under this Act and | ||||||
2 | the Use Tax Act shall not exceed $2,000,000 in any fiscal year. | ||||||
3 | Beginning July 1, 2013, each month the Department shall pay | ||||||
4 | into the Underground Storage Tank Fund from the proceeds | ||||||
5 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
6 | Act, and the Service Occupation Tax Act an amount equal to the | ||||||
7 | average monthly deficit in the Underground Storage Tank Fund | ||||||
8 | during the prior year, as certified annually by the Illinois | ||||||
9 | Environmental Protection Agency, but the total payment into the | ||||||
10 | Underground Storage Tank Fund under this Act, the Use Tax Act, | ||||||
11 | the Service Use Tax Act, and the Service Occupation Tax Act | ||||||
12 | shall not exceed $18,000,000 in any State fiscal year. As used | ||||||
13 | in this paragraph, the "average monthly deficit" shall be equal | ||||||
14 | to the difference between the average monthly claims for | ||||||
15 | payment by the fund and the average monthly revenues deposited | ||||||
16 | into the fund, excluding payments made pursuant to this | ||||||
17 | paragraph. | ||||||
18 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
19 | received by the Department under the Use Tax Act, the Service | ||||||
20 | Use Tax Act, the Service Occupation Tax Act, and this Act, each | ||||||
21 | month the Department shall deposit $500,000 into the State | ||||||
22 | Crime Laboratory Fund. | ||||||
23 | Of the remainder of the moneys received by the Department | ||||||
24 | pursuant
to this Act, (a) 1.75% thereof shall be paid into the | ||||||
25 | Build Illinois
Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
26 | and after July 1, 1989,
3.8% thereof shall be paid into the |
| ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
1 | Build Illinois Fund; provided, however,
that if in any fiscal | |||||||||||||||||||||||||||||||||||||
2 | year the sum of (1) the aggregate of 2.2% or 3.8%, as
the case | |||||||||||||||||||||||||||||||||||||
3 | may be, of the moneys received by the Department and required | |||||||||||||||||||||||||||||||||||||
4 | to
be paid into the Build Illinois Fund pursuant to this Act, | |||||||||||||||||||||||||||||||||||||
5 | Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax | |||||||||||||||||||||||||||||||||||||
6 | Act, and Section 9 of the
Service Occupation Tax Act, such Acts | |||||||||||||||||||||||||||||||||||||
7 | being hereinafter called the "Tax
Acts" and such aggregate of | |||||||||||||||||||||||||||||||||||||
8 | 2.2% or 3.8%, as the case may be, of moneys
being hereinafter | |||||||||||||||||||||||||||||||||||||
9 | called the "Tax Act Amount", and (2) the amount
transferred to | |||||||||||||||||||||||||||||||||||||
10 | the Build Illinois Fund from the State and Local Sales Tax
| |||||||||||||||||||||||||||||||||||||
11 | Reform Fund shall be less than the Annual Specified Amount (as | |||||||||||||||||||||||||||||||||||||
12 | hereinafter
defined), an amount equal to the difference shall | |||||||||||||||||||||||||||||||||||||
13 | be immediately paid into
the Build Illinois Fund from other | |||||||||||||||||||||||||||||||||||||
14 | moneys received by the Department
pursuant to the Tax Acts; the | |||||||||||||||||||||||||||||||||||||
15 | "Annual Specified Amount" means the amounts
specified below for | |||||||||||||||||||||||||||||||||||||
16 | fiscal years 1986 through 1993: | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
26 | and means the Certified Annual Debt Service Requirement (as |
| |||||||
| |||||||
1 | defined in
Section 13 of the Build Illinois Bond Act) or the | ||||||
2 | Tax Act Amount, whichever
is greater, for fiscal year 1994 and | ||||||
3 | each fiscal year thereafter; and
further provided, that if on | ||||||
4 | the last business day of any month the sum of
(1) the Tax Act | ||||||
5 | Amount required to be deposited into the Build Illinois
Bond | ||||||
6 | Account in the Build Illinois Fund during such month and (2) | ||||||
7 | the
amount transferred to the Build Illinois Fund from the | ||||||
8 | State and Local
Sales Tax Reform Fund shall have been less than | ||||||
9 | 1/12 of the Annual
Specified Amount, an amount equal to the | ||||||
10 | difference shall be immediately
paid into the Build Illinois | ||||||
11 | Fund from other moneys received by the
Department pursuant to | ||||||
12 | the Tax Acts; and, further provided, that in no
event shall the | ||||||
13 | payments required under the preceding proviso result in
| ||||||
14 | aggregate payments into the Build Illinois Fund pursuant to | ||||||
15 | this clause (b)
for any fiscal year in excess of the greater of | ||||||
16 | (i) the Tax Act Amount or
(ii) the Annual Specified Amount for | ||||||
17 | such fiscal year. The amounts payable
into the Build Illinois | ||||||
18 | Fund under clause (b) of the first sentence in this
paragraph | ||||||
19 | shall be payable only until such time as the aggregate amount | ||||||
20 | on
deposit under each trust indenture securing Bonds issued and | ||||||
21 | outstanding
pursuant to the Build Illinois Bond Act is | ||||||
22 | sufficient, taking into account
any future investment income, | ||||||
23 | to fully provide, in accordance with such
indenture, for the | ||||||
24 | defeasance of or the payment of the principal of,
premium, if | ||||||
25 | any, and interest on the Bonds secured by such indenture and on
| ||||||
26 | any Bonds expected to be issued thereafter and all fees and |
| |||||||
| |||||||
1 | costs payable
with respect thereto, all as certified by the | ||||||
2 | Director of the Bureau of the
Budget (now Governor's Office of | ||||||
3 | Management and Budget). If on the last
business day of any | ||||||
4 | month in which Bonds are
outstanding pursuant to the Build | ||||||
5 | Illinois Bond Act, the aggregate of
moneys deposited in the | ||||||
6 | Build Illinois Bond Account in the Build Illinois
Fund in such | ||||||
7 | month shall be less than the amount required to be transferred
| ||||||
8 | in such month from the Build Illinois Bond Account to the Build | ||||||
9 | Illinois
Bond Retirement and Interest Fund pursuant to Section | ||||||
10 | 13 of the Build
Illinois Bond Act, an amount equal to such | ||||||
11 | deficiency shall be immediately
paid from other moneys received | ||||||
12 | by the Department pursuant to the Tax Acts
to the Build | ||||||
13 | Illinois Fund; provided, however, that any amounts paid to the
| ||||||
14 | Build Illinois Fund in any fiscal year pursuant to this | ||||||
15 | sentence shall be
deemed to constitute payments pursuant to | ||||||
16 | clause (b) of the first sentence
of this paragraph and shall | ||||||
17 | reduce the amount otherwise payable for such
fiscal year | ||||||
18 | pursuant to that clause (b). The moneys received by the
| ||||||
19 | Department pursuant to this Act and required to be deposited | ||||||
20 | into the Build
Illinois Fund are subject to the pledge, claim | ||||||
21 | and charge set forth in
Section 12 of the Build Illinois Bond | ||||||
22 | Act. | ||||||
23 | Subject to payment of amounts into the Build Illinois Fund | ||||||
24 | as provided in
the preceding paragraph or in any amendment | ||||||
25 | thereto hereafter enacted, the
following specified monthly | ||||||
26 | installment of the amount requested in the
certificate of the |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | Chairman of the Metropolitan Pier and Exposition
Authority | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | provided under Section 8.25f of the State Finance Act, but not | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | in
excess of sums designated as "Total Deposit", shall be | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | deposited in the
aggregate from collections under Section 9 of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | the Use Tax Act, Section 9 of
the Service Use Tax Act, Section | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | 9 of the Service Occupation Tax Act, and
Section 3 of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Retailers' Occupation Tax Act into the McCormick Place
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Expansion Project Fund in the specified fiscal years. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||
10 | Beginning July 20, 1993 and in each month of each fiscal | ||||||||||||||||||||||||||||||||||||||||||||||
11 | year thereafter,
one-eighth of the amount requested in the | ||||||||||||||||||||||||||||||||||||||||||||||
12 | certificate of the Chairman of
the Metropolitan Pier and | ||||||||||||||||||||||||||||||||||||||||||||||
13 | Exposition Authority for that fiscal year, less
the amount | ||||||||||||||||||||||||||||||||||||||||||||||
14 | deposited into the McCormick Place Expansion Project Fund by | ||||||||||||||||||||||||||||||||||||||||||||||
15 | the
State Treasurer in the respective month under subsection | ||||||||||||||||||||||||||||||||||||||||||||||
16 | (g) of Section 13
of the Metropolitan Pier and Exposition | ||||||||||||||||||||||||||||||||||||||||||||||
17 | Authority Act, plus cumulative
deficiencies in the deposits | ||||||||||||||||||||||||||||||||||||||||||||||
18 | required under this Section for previous
months and years, | ||||||||||||||||||||||||||||||||||||||||||||||
19 | shall be deposited into the McCormick Place Expansion
Project | ||||||||||||||||||||||||||||||||||||||||||||||
20 | Fund, until the full amount requested for the fiscal year, but | ||||||||||||||||||||||||||||||||||||||||||||||
21 | not
in excess of the amount specified above as "Total Deposit", | ||||||||||||||||||||||||||||||||||||||||||||||
22 | has been deposited. | ||||||||||||||||||||||||||||||||||||||||||||||
23 | Subject to payment of amounts into the Capital Projects | ||||||||||||||||||||||||||||||||||||||||||||||
24 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||||||||||||||||||||||||||||||||||||||||||
25 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||||||||||||||||||||||||||||||||||||||||||
26 | preceding paragraphs or in any amendments thereto hereafter |
| |||||||
| |||||||
1 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
2 | the Department shall each month deposit into the Aviation Fuel | ||||||
3 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
4 | be required for refunds of the 80% portion of the tax on | ||||||
5 | aviation fuel under this Act. The Department shall only deposit | ||||||
6 | moneys into the Aviation Fuel Sales Tax Refund Fund under this | ||||||
7 | paragraph for so long as the revenue use requirements of 49 | ||||||
8 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. | ||||||
9 | Subject to payment of amounts into the Build Illinois Fund | ||||||
10 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
11 | preceding paragraphs
or in any amendments
thereto hereafter | ||||||
12 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
13 | 2013, the Department shall each
month pay into the Illinois Tax | ||||||
14 | Increment Fund 0.27% of 80% of the net revenue
realized for the | ||||||
15 | preceding month from the 6.25% general rate on the selling
| ||||||
16 | price of tangible personal property. | ||||||
17 | Subject to payment of amounts into the Build Illinois Fund | ||||||
18 | and the
McCormick Place Expansion Project Fund pursuant to the | ||||||
19 | preceding paragraphs or in any
amendments thereto hereafter | ||||||
20 | enacted, beginning with the receipt of the first
report of | ||||||
21 | taxes paid by an eligible business and continuing for a 25-year
| ||||||
22 | period, the Department shall each month pay into the Energy | ||||||
23 | Infrastructure
Fund 80% of the net revenue realized from the | ||||||
24 | 6.25% general rate on the
selling price of Illinois-mined coal | ||||||
25 | that was sold to an eligible business.
For purposes of this | ||||||
26 | paragraph, the term "eligible business" means a new
electric |
| |||||||
| |||||||
1 | generating facility certified pursuant to Section 605-332 of | ||||||
2 | the
Department of Commerce and Economic Opportunity
Law of the | ||||||
3 | Civil Administrative Code of Illinois. | ||||||
4 | Subject to payment of amounts into the Build Illinois Fund, | ||||||
5 | the McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
6 | Increment Fund, and the Energy Infrastructure Fund pursuant to | ||||||
7 | the preceding paragraphs or in any amendments to this Section | ||||||
8 | hereafter enacted, beginning on the first day of the first | ||||||
9 | calendar month to occur on or after August 26, 2014 (the | ||||||
10 | effective date of Public Act 98-1098), each month, from the | ||||||
11 | collections made under Section 9 of the Use Tax Act, Section 9 | ||||||
12 | of the Service Use Tax Act, Section 9 of the Service Occupation | ||||||
13 | Tax Act, and Section 3 of the Retailers' Occupation Tax Act, | ||||||
14 | the Department shall pay into the Tax Compliance and | ||||||
15 | Administration Fund, to be used, subject to appropriation, to | ||||||
16 | fund additional auditors and compliance personnel at the | ||||||
17 | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | ||||||
18 | the cash receipts collected during the preceding fiscal year by | ||||||
19 | the Audit Bureau of the Department under the Use Tax Act, the | ||||||
20 | Service Use Tax Act, the Service Occupation Tax Act, the | ||||||
21 | Retailers' Occupation Tax Act, and associated local occupation | ||||||
22 | and use taxes administered by the Department. | ||||||
23 | Subject to payments of amounts into the Build Illinois | ||||||
24 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
25 | Tax Increment Fund, the Energy Infrastructure Fund, and the Tax | ||||||
26 | Compliance and Administration Fund as provided in this Section, |
| |||||||
| |||||||
1 | beginning on July 1, 2018 the Department shall pay each month | ||||||
2 | into the Downstate Public Transportation Fund the moneys | ||||||
3 | required to be so paid under Section 2-3 of the Downstate | ||||||
4 | Public Transportation Act. | ||||||
5 | Subject to successful execution and delivery of a | ||||||
6 | public-private agreement between the public agency and private | ||||||
7 | entity and completion of the civic build, beginning on July 1, | ||||||
8 | 2023, of the remainder of the moneys received by the Department | ||||||
9 | under the Use Tax Act, the Service Use Tax Act, the Service | ||||||
10 | Occupation Tax Act, and this Act, the Department shall deposit | ||||||
11 | the following specified deposits in the aggregate from | ||||||
12 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
13 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
14 | Act, as required under Section 8.25g of the State Finance Act | ||||||
15 | for distribution consistent with the Public-Private | ||||||
16 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
17 | The moneys received by the Department pursuant to this Act and | ||||||
18 | required to be deposited into the Civic and Transit | ||||||
19 | Infrastructure Fund are subject to the pledge, claim and charge | ||||||
20 | set forth in Section 25-55 of the Public-Private Partnership | ||||||
21 | for Civic and Transit Infrastructure Project Act. As used in | ||||||
22 | this paragraph, "civic build", "private entity", | ||||||
23 | "public-private agreement", and "public agency" have the | ||||||
24 | meanings provided in Section 25-10 of the Public-Private | ||||||
25 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
26 | Fiscal Year .............................Total Deposit |
| |||||||
| |||||||
1 | 2024 .....................................$200,000,000 | ||||||
2 | 2025 ....................................$206,000,000 | ||||||
3 | 2026 ....................................$212,200,000 | ||||||
4 | 2027 ....................................$218,500,000 | ||||||
5 | 2028 ....................................$225,100,000 | ||||||
6 | 2029 ....................................$288,700,000 | ||||||
7 | 2030 ....................................$298,900,000 | ||||||
8 | 2031 ....................................$309,300,000 | ||||||
9 | 2032 ....................................$320,100,000 | ||||||
10 | 2033 ....................................$331,200,000 | ||||||
11 | 2034 ....................................$341,200,000 | ||||||
12 | 2035 ....................................$351,400,000 | ||||||
13 | 2036 ....................................$361,900,000 | ||||||
14 | 2037 ....................................$372,800,000 | ||||||
15 | 2038 ....................................$384,000,000 | ||||||
16 | 2039 ....................................$395,500,000 | ||||||
17 | 2040 ....................................$407,400,000 | ||||||
18 | 2041 ....................................$419,600,000 | ||||||
19 | 2042 ....................................$432,200,000 | ||||||
20 | 2043 ....................................$445,100,000 | ||||||
21 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
22 | the payment of amounts into the County and Mass Transit | ||||||
23 | District Fund, the Local Government Tax Fund, the Build | ||||||
24 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
25 | Illinois Tax Increment Fund, the Energy Infrastructure Fund, | ||||||
26 | and the Tax Compliance and Administration Fund as provided in |
| |||||||
| |||||||
1 | this Section, the Department shall pay each month into the Road | ||||||
2 | Fund the amount estimated to represent 16% of the net revenue | ||||||
3 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
4 | Beginning July 1, 2022 and until July 1, 2023, subject to the | ||||||
5 | payment of amounts into the County and Mass Transit District | ||||||
6 | Fund, the Local Government Tax Fund, the Build Illinois Fund, | ||||||
7 | the McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
8 | Increment Fund, the Energy Infrastructure Fund, and the Tax | ||||||
9 | Compliance and Administration Fund as provided in this Section, | ||||||
10 | the Department shall pay each month into the Road Fund the | ||||||
11 | amount estimated to represent 32% of the net revenue realized | ||||||
12 | from the taxes imposed on motor fuel and gasohol. Beginning | ||||||
13 | July 1, 2023 and until July 1, 2024, subject to the payment of | ||||||
14 | amounts into the County and Mass Transit District Fund, the | ||||||
15 | Local Government Tax Fund, the Build Illinois Fund, the | ||||||
16 | McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
17 | Increment Fund, the Energy Infrastructure Fund, and the Tax | ||||||
18 | Compliance and Administration Fund as provided in this Section, | ||||||
19 | the Department shall pay each month into the Road Fund the | ||||||
20 | amount estimated to represent 48% of the net revenue realized | ||||||
21 | from the taxes imposed on motor fuel and gasohol. Beginning | ||||||
22 | July 1, 2024 and until July 1, 2025, subject to the payment of | ||||||
23 | amounts into the County and Mass Transit District Fund, the | ||||||
24 | Local Government Tax Fund, the Build Illinois Fund, the | ||||||
25 | McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
26 | Increment Fund, the Energy Infrastructure Fund, and the Tax |
| |||||||
| |||||||
1 | Compliance and Administration Fund as provided in this Section, | ||||||
2 | the Department shall pay each month into the Road Fund the | ||||||
3 | amount estimated to represent 64% of the net revenue realized | ||||||
4 | from the taxes imposed on motor fuel and gasohol. Beginning on | ||||||
5 | July 1, 2025, subject to the payment of amounts into the County | ||||||
6 | and Mass Transit District Fund, the Local Government Tax Fund, | ||||||
7 | the Build Illinois Fund, the McCormick Place Expansion Project | ||||||
8 | Fund, the Illinois Tax Increment Fund, the Energy | ||||||
9 | Infrastructure Fund, and the Tax Compliance and Administration | ||||||
10 | Fund as provided in this Section, the Department shall pay each | ||||||
11 | month into the Road Fund the amount estimated to represent 80% | ||||||
12 | of the net revenue realized from the taxes imposed on motor | ||||||
13 | fuel and gasohol. As used in this paragraph "motor fuel" has | ||||||
14 | the meaning given to that term in Section 1.1 of the Motor Fuel | ||||||
15 | Tax Act, and "gasohol" has the meaning given to that term in | ||||||
16 | Section 3-40 of the Use Tax Act. | ||||||
17 | Of the remainder of the moneys received by the Department | ||||||
18 | pursuant to
this Act, 75% thereof shall be paid into the State | ||||||
19 | Treasury and 25% shall
be reserved in a special account and | ||||||
20 | used only for the transfer to the
Common School Fund as part of | ||||||
21 | the monthly transfer from the General Revenue
Fund in | ||||||
22 | accordance with Section 8a of the State Finance Act. | ||||||
23 | The Department may, upon separate written notice to a | ||||||
24 | taxpayer,
require the taxpayer to prepare and file with the | ||||||
25 | Department on a form
prescribed by the Department within not | ||||||
26 | less than 60 days after receipt
of the notice an annual |
| |||||||
| |||||||
1 | information return for the tax year specified in
the notice. | ||||||
2 | Such annual return to the Department shall include a
statement | ||||||
3 | of gross receipts as shown by the retailer's last Federal | ||||||
4 | income
tax return. If the total receipts of the business as | ||||||
5 | reported in the
Federal income tax return do not agree with the | ||||||
6 | gross receipts reported to
the Department of Revenue for the | ||||||
7 | same period, the retailer shall attach
to his annual return a | ||||||
8 | schedule showing a reconciliation of the 2
amounts and the | ||||||
9 | reasons for the difference. The retailer's annual
return to the | ||||||
10 | Department shall also disclose the cost of goods sold by
the | ||||||
11 | retailer during the year covered by such return, opening and | ||||||
12 | closing
inventories of such goods for such year, costs of goods | ||||||
13 | used from stock
or taken from stock and given away by the | ||||||
14 | retailer during such year,
payroll information of the | ||||||
15 | retailer's business during such year and any
additional | ||||||
16 | reasonable information which the Department deems would be
| ||||||
17 | helpful in determining the accuracy of the monthly, quarterly | ||||||
18 | or annual
returns filed by such retailer as provided for in | ||||||
19 | this Section. | ||||||
20 | If the annual information return required by this Section | ||||||
21 | is not
filed when and as required, the taxpayer shall be liable | ||||||
22 | as follows: | ||||||
23 | (i) Until January 1, 1994, the taxpayer shall be liable
| ||||||
24 | for a penalty equal to 1/6 of 1% of the tax due from such | ||||||
25 | taxpayer under
this Act during the period to be covered by | ||||||
26 | the annual return for each
month or fraction of a month |
| |||||||
| |||||||
1 | until such return is filed as required, the
penalty to be | ||||||
2 | assessed and collected in the same manner as any other
| ||||||
3 | penalty provided for in this Act. | ||||||
4 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
5 | be
liable for a penalty as described in Section 3-4 of the | ||||||
6 | Uniform Penalty and
Interest Act. | ||||||
7 | The chief executive officer, proprietor, owner or highest | ||||||
8 | ranking
manager shall sign the annual return to certify the | ||||||
9 | accuracy of the
information contained therein. Any person who | ||||||
10 | willfully signs the
annual return containing false or | ||||||
11 | inaccurate information shall be guilty
of perjury and punished | ||||||
12 | accordingly. The annual return form prescribed
by the | ||||||
13 | Department shall include a warning that the person signing the
| ||||||
14 | return may be liable for perjury. | ||||||
15 | The provisions of this Section concerning the filing of an | ||||||
16 | annual
information return do not apply to a retailer who is not | ||||||
17 | required to
file an income tax return with the United States | ||||||
18 | Government. | ||||||
19 | As soon as possible after the first day of each month, upon | ||||||
20 | certification
of the Department of Revenue, the Comptroller | ||||||
21 | shall order transferred and
the Treasurer shall transfer from | ||||||
22 | the General Revenue Fund to the Motor
Fuel Tax Fund an amount | ||||||
23 | equal to 1.7% of 80% of the net revenue realized
under this Act | ||||||
24 | for the second preceding
month.
Beginning April 1, 2000, this | ||||||
25 | transfer is no longer required
and shall not be made. | ||||||
26 | Net revenue realized for a month shall be the revenue |
| |||||||
| |||||||
1 | collected by the
State pursuant to this Act, less the amount | ||||||
2 | paid out during that month as
refunds to taxpayers for | ||||||
3 | overpayment of liability. | ||||||
4 | For greater simplicity of administration, manufacturers, | ||||||
5 | importers
and wholesalers whose products are sold at retail in | ||||||
6 | Illinois by
numerous retailers, and who wish to do so, may | ||||||
7 | assume the responsibility
for accounting and paying to the | ||||||
8 | Department all tax accruing under this
Act with respect to such | ||||||
9 | sales, if the retailers who are affected do not
make written | ||||||
10 | objection to the Department to this arrangement. | ||||||
11 | Any person who promotes, organizes, provides retail | ||||||
12 | selling space for
concessionaires or other types of sellers at | ||||||
13 | the Illinois State Fair, DuQuoin
State Fair, county fairs, | ||||||
14 | local fairs, art shows, flea markets and similar
exhibitions or | ||||||
15 | events, including any transient merchant as defined by Section | ||||||
16 | 2
of the Transient Merchant Act of 1987, is required to file a | ||||||
17 | report with the
Department providing the name of the merchant's | ||||||
18 | business, the name of the
person or persons engaged in | ||||||
19 | merchant's business, the permanent address and
Illinois | ||||||
20 | Retailers Occupation Tax Registration Number of the merchant, | ||||||
21 | the
dates and location of the event and other reasonable | ||||||
22 | information that the
Department may require. The report must be | ||||||
23 | filed not later than the 20th day
of the month next following | ||||||
24 | the month during which the event with retail sales
was held. | ||||||
25 | Any person who fails to file a report required by this Section
| ||||||
26 | commits a business offense and is subject to a fine not to |
| |||||||
| |||||||
1 | exceed $250. | ||||||
2 | Any person engaged in the business of selling tangible | ||||||
3 | personal
property at retail as a concessionaire or other type | ||||||
4 | of seller at the
Illinois State Fair, county fairs, art shows, | ||||||
5 | flea markets and similar
exhibitions or events, or any | ||||||
6 | transient merchants, as defined by Section 2
of the Transient | ||||||
7 | Merchant Act of 1987, may be required to make a daily report
of | ||||||
8 | the amount of such sales to the Department and to make a daily | ||||||
9 | payment of
the full amount of tax due. The Department shall | ||||||
10 | impose this
requirement when it finds that there is a | ||||||
11 | significant risk of loss of
revenue to the State at such an | ||||||
12 | exhibition or event. Such a finding
shall be based on evidence | ||||||
13 | that a substantial number of concessionaires
or other sellers | ||||||
14 | who are not residents of Illinois will be engaging in
the | ||||||
15 | business of selling tangible personal property at retail at the
| ||||||
16 | exhibition or event, or other evidence of a significant risk of | ||||||
17 | loss of revenue
to the State. The Department shall notify | ||||||
18 | concessionaires and other sellers
affected by the imposition of | ||||||
19 | this requirement. In the absence of
notification by the | ||||||
20 | Department, the concessionaires and other sellers
shall file | ||||||
21 | their returns as otherwise required in this Section. | ||||||
22 | (Source: P.A. 100-303, eff. 8-24-17; 100-363, eff. 7-1-18; | ||||||
23 | 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, Article | ||||||
24 | 15, Section 15-25, eff. 6-5-19; 101-10, Article 25, Section | ||||||
25 | 25-120, eff. 6-5-19; 101-27, eff. 6-25-19; 101-32, eff. | ||||||
26 | 6-28-19; 101-604, eff. 12-13-19; 101-636, eff. 6-10-20.)
|
| |||||||
| |||||||
1 | Section 35. The Leveling the Playing Field for Illinois | ||||||
2 | Retail Act is amended by changing Sections 5-5 and 5-25 as | ||||||
3 | follows:
| ||||||
4 | (35 ILCS 185/5-5)
| ||||||
5 | Sec. 5-5. Findings. The General Assembly finds that | ||||||
6 | certified service providers and certified automated systems | ||||||
7 | simplify use and occupation tax compliance for remote | ||||||
8 | retailers, which fosters higher levels of accurate tax | ||||||
9 | collection and remittance and generates administrative savings | ||||||
10 | and new marginal tax revenue for both State and local taxing | ||||||
11 | jurisdictions. By making the services of certified service | ||||||
12 | providers and certified automated systems available to remote | ||||||
13 | retailers without charge, other than their retailer customer's | ||||||
14 | retail discount, as provided in this Act, the State will | ||||||
15 | substantially eliminate the burden on those remote retailers to | ||||||
16 | collect and remit both State and local taxing jurisdiction use | ||||||
17 | and occupation taxes. While providing a means for remote | ||||||
18 | retailers to collect and remit tax on an even basis with | ||||||
19 | Illinois retailers, this Act also protects existing local tax | ||||||
20 | revenue streams by retaining origin sourcing for all | ||||||
21 | transactions by retailers maintaining a physical presence in | ||||||
22 | Illinois.
| ||||||
23 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
|
| |||||||
| |||||||
1 | (35 ILCS 185/5-25)
| ||||||
2 | Sec. 5-25. Certification. | ||||||
3 | (a) The Department shall, no later than July 1, 2020: | ||||||
4 | (1) establish uniform minimum standards that companies | ||||||
5 | wishing to be designated as a certified service provider in | ||||||
6 | this State must meet; | ||||||
7 | (2) establish uniform minimum standards that certified | ||||||
8 | automated systems must meet; | ||||||
9 | (3) establish a certification process to review the | ||||||
10 | systems of companies wishing to be designated as a | ||||||
11 | certified service provider in this State or of companies | ||||||
12 | wishing to use a certified automated process; this | ||||||
13 | certification process shall provide that companies that | ||||||
14 | meet all required standards and whose systems have been | ||||||
15 | tested and approved by the Department for properly | ||||||
16 | determining the taxability of items to be sold, the correct | ||||||
17 | tax rate to apply to a transaction, and the appropriate | ||||||
18 | jurisdictions to which the tax shall be remitted, shall be | ||||||
19 | certified; | ||||||
20 | (4) enter into a contractual relationship with each | ||||||
21 | company that qualifies as a certified service provider or | ||||||
22 | that will be using a certified automated system ; those | ||||||
23 | contracts shall, at a minimum, provide: | ||||||
24 | (A) that the certified service provider shall be | ||||||
25 | held liable for the tax imposed under this Act and the | ||||||
26 | Use Tax Act and all applicable local occupation taxes |
| |||||||
| |||||||
1 | administered by the Department if the certified | ||||||
2 | service provider fails to correctly remit the tax after | ||||||
3 | having been provided with the tax and information by a | ||||||
4 | remote retailer to correctly remit the taxes imposed | ||||||
5 | under this Act and the Use Tax Act and all applicable | ||||||
6 | local occupation taxes administered by the Department; | ||||||
7 | if the certified service provider demonstrates to the | ||||||
8 | satisfaction of the Department that its failure to | ||||||
9 | correctly remit tax on a retail sale resulted from the | ||||||
10 | certified service provider's good faith reliance on | ||||||
11 | incorrect or insufficient information provided by the | ||||||
12 | remote retailer, the certified service provider shall | ||||||
13 | be relieved of liability for the tax on that retail | ||||||
14 | sale; in that case, the remote retailer is liable for | ||||||
15 | any resulting tax due; | ||||||
16 | (B) the responsibilities of the certified service | ||||||
17 | provider and the remote retailers that contract with | ||||||
18 | the certified service provider or the user of a | ||||||
19 | certified automated system related to record keeping | ||||||
20 | and auditing consistent with requirements imposed | ||||||
21 | under the Retailers' Occupation Tax Act and the Use Tax | ||||||
22 | Act; | ||||||
23 | (C) for the protection and confidentiality of tax | ||||||
24 | information consistent with requirements imposed under | ||||||
25 | the Retailers' Occupation Tax Act and the Use Tax Act; | ||||||
26 | (D) that a certified service provider may claim the |
| |||||||
| |||||||
1 | discount provided for in Section 3 of the Retailers' | ||||||
2 | Occupation Tax Act for the tax dollars it collects and | ||||||
3 | timely remits on returns that are timely filed with the | ||||||
4 | Department on behalf of remote retailers; remote | ||||||
5 | retailers using a certified service provider may not | ||||||
6 | claim the discount allowed in Section 3 of the | ||||||
7 | Retailers' Occupation Tax Act with respect to those | ||||||
8 | collections compensation equal to 1.75% of the tax | ||||||
9 | dollars collected and remitted to the State by a | ||||||
10 | certified service provider on a timely basis, along | ||||||
11 | with a return that has been timely filed, on behalf of | ||||||
12 | remote retailers; remote retailers using a certified | ||||||
13 | service provider may not claim the vendor's discount | ||||||
14 | allowed under the Retailers' Occupation Tax Act or the | ||||||
15 | Service Occupation Tax Act ; and | ||||||
16 | (E) that the certified service provider shall file | ||||||
17 | a separate return for each remote retailer with which | ||||||
18 | it has a Tax Remittance Agreement. | ||||||
19 | The provisions of this Section shall supersede the | ||||||
20 | provisions of the Illinois Procurement Code.
| ||||||
21 | (b) The Department may act jointly with other states to | ||||||
22 | establish the minimum standards and process for certification | ||||||
23 | required by paragraphs (1), (2), and (3) of subsection (a). | ||||||
24 | (c) When the systems of a certified service provider or | ||||||
25 | certified automated systems are updated or upgraded, they must | ||||||
26 | be recertified by the Department. Notification of changes shall |
| |||||||
| |||||||
1 | be provided to the Department prior to implementation. Upon | ||||||
2 | receipt of such notification, the Department shall review and | ||||||
3 | test the changes to assess whether the updated system of the | ||||||
4 | certified service provider or the updated certified automated | ||||||
5 | system can properly determine the taxability of items to be | ||||||
6 | sold, the correct tax rate to apply to a transaction, and the | ||||||
7 | appropriate jurisdictions to which the tax shall be remitted. | ||||||
8 | The Department shall recertify updated systems that meet these | ||||||
9 | requirements. The certified service provider or retailer using | ||||||
10 | a certified automated system shall be liable for any tax | ||||||
11 | resulting from errors caused by use of an updated or upgraded | ||||||
12 | system prior to recertification by the Department. In addition | ||||||
13 | to these procedures, the Department may periodically review the | ||||||
14 | system of a certified service provider or the certified | ||||||
15 | automated system used by a retailer to ensure that the system | ||||||
16 | can properly determine the taxability of items to be sold, the | ||||||
17 | correct tax rate to apply to a transaction, and the appropriate | ||||||
18 | jurisdictions to which the tax shall be remitted. | ||||||
19 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
| ||||||
20 | Section 40. The Property Tax Code is amended by changing | ||||||
21 | Section 10-390 as follows:
| ||||||
22 | (35 ILCS 200/10-390)
| ||||||
23 | Sec. 10-390. Valuation of supportive living facilities. | ||||||
24 | (a) Notwithstanding Section 1-55, to determine
the fair |
| |||||||
| |||||||
1 | cash value of any supportive living facility established under | ||||||
2 | Section 5-5.01a of the Illinois Public Aid Code, in assessing | ||||||
3 | the facility, a local assessment
officer must use the income | ||||||
4 | capitalization approach. For the purposes of this Section, | ||||||
5 | gross potential income must not exceed the maximum individual | ||||||
6 | Supplemental Security Income (SSI) amount minus a resident's | ||||||
7 | personal allowance as defined at 89 Ill Admin. Code 146.205, | ||||||
8 | multiplied by the number of apartments authorized by the | ||||||
9 | supportive living facility certification. | ||||||
10 | (b) When assessing supportive living facilities, the local | ||||||
11 | assessment
officer may not consider: | ||||||
12 | (1) payments from Medicaid for services provided to | ||||||
13 | residents of supportive living facilities when such | ||||||
14 | payments constitute income that is attributable to | ||||||
15 | services and not attributable to the real estate; or | ||||||
16 | (2) payments by a resident of a supportive living | ||||||
17 | facility for services that would be paid by Medicaid if the | ||||||
18 | resident were Medicaid-eligible, when such payments | ||||||
19 | constitute income that is attributable to services and not | ||||||
20 | attributable to real estate.
| ||||||
21 | (Source: P.A. 94-1086, eff. 1-19-07.)
| ||||||
22 | Section 97. Severability. The provisions of Section 15 of | ||||||
23 | this Act are severable under Section 1.31 of the Statute on | ||||||
24 | Statutes.
|
| |||||||
| |||||||
1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.".
|